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    6. 3. 1.    
Regular City Council Meeting
Meeting Date: 09/10/2019  

Agenda Item
Resolution - Aviation: Consider a resolution authorizing the Mayor to execute a Federal Grant Acceptance Agreement with the Federal Aviation Administration (FAA) for funding a project to modify the terminal building at Lubbock Preston Smith International Airport.
Item Summary
Lubbock Preston Smith International Airport is eligible to receive annual entitlement funds from the Federal Aviation Administration (FAA) under the Airport Improvement Program. Funds under this program are restricted to safety, security, and capacity projects for capital improvements. The project includes planning, design, and construction of renovations to the terminal to reconfigure and enhance passenger circulation, streamline security operations, improve baggage handling, and preserve the overall capacity of the terminal building. The project includes components to renovate/replace aging and failing infrastructure, relocate passenger processing functions in a logical and efficient manner, and maximize the use of space to address capacity constraints.

The Airport has received a grant offer in the amount of $3,173,227 for Phase II Modifications of the Terminal Building Improvements Project. This offer is part of a multi-year grant totaling $8,767,282 with additional funding programed for Fiscal Years 2020 and 2021. In Fiscal Years 2020 and 2021, the FAA will establish that fiscal year's maximum obligation in a letter to the Sponsor. When the FAA can calculate the funding and incur the obligation, the FAA will issue this letter to the Sponsor. The FAA commits the United States to obligate an additional amount to this project for FY 2020 and 2021 pursuant to 49 USC 47114 and subject to the restrictions on the use of such apportions imposed on FAA by current or future statute or regulation.

Due to the complexity of the project, construction has been divided into two phases. Phase I, roof replacement, is currently underway.  All other project components will be included in Phase II, expected for Council presentation later this year.
Fiscal Impact
The total estimated project budget is $45,723,517.  Funding sources include Airport Improvement Program grant entitlements of $17,750,658 (multiple grant awards: FY 2016 - $1,711,100; FY 2018 - $7,272,276; FY 2019-2021 - $8,767,282); Passenger Facility Charge (PFC) Revenue and PFC Revenue bonds $17,113,359; and Airport Revenue and Airport Revenue bonds $10,859,500.

The FAA deadline to accept the grant offer is September 13, 2019.  The next scheduled Airport Board meeting is September 11, 2019.  As such, Council action on September 10, 2019, is necessary prior to the Airport Board meeting.  The Airport Board is familiar with the project funding and has been expecting the grant offer.  The board will be advised of Council action at their September 11, 2019 meeting.
Staff/Board Recommending
Bill Howerton, Deputy City Manager

Resolution FAA Grant Acceptance Agreement
Grant Acceptance Agreement

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