Title
Acceptance of US Department of Transportation FAA - AIP Grant (No. 3-12-0028-29-2009) (B)
This item seeks the City of Gainesville acceptance of a 2009 US Department of Transportation FAA - AIP Grant to the Gainesville Regional Airport in the amount of $2,400,000.00 for an Apron Rehabilitation project at the Gainesville Regional Airport.
Explanation
On December 11, 2008, in anticipation of Economic Federal Stimulus Legislation, the Gainesville-Alachua County Regional Airport Authority (GACRAA) directed staff to pursue an FAA Grant Application for funding of a General Aviation Apron Partial Reconstruction project.
On February 17, 2009, the American Recovery and Reinvestment Act (ARRA) was signed into law by President Barack Obama; the ARRA specifically includes $1.3 billion for projects and programs administered by the US Department of Transportation, Federal Aviation Administration (FAA).
Grants utilizing ARRA funds have additional requirements, above and beyond those normally applicable to FAA Grants. These include various reporting requirements and sponsor certifications tied directly and closely to the use of grant funds and the performance of the project for which funds are used. Many of these reports and certifications are very time sensitive and as a result of this, the City will have to rely on GACRAA to meet these special ARRA obligations in a timely fashion.
Under these circumstances, GACRAA has agreed to defend, indemnify, and hold harmless the City for any failure to meet these special compliance requirements. A copy of the proposed Indemnification Agreement, with attachments, is included in the backup and recommended action includes authorizing the Mayor to execute such Indemnification Agreement subject to approval as to form and legality by the City Attorney. The Indemnification Agreement is scheduled to be approved by GACRAA at its next regular, monthly meeting.
At its meeting on March 26, 2009, GACRAA adopted Resolution 09-010 approving an application for federal assistance for an Apron Rehabilitation project estimated to cost $2,400,000.00. GACRAA also approved an anticipated grant offer that is expected to be received following the bid phase of the project which is expected to take place no later than May 20, 2009.
The Grant Offer will consist of fiscal year 2009 funds from the Airport Improvement Program (AIP) administered by the Federal Aviation Administration (FAA) and is currently anticipated to be in the amount of $2,400,000.00. Airport staff has been advised by the FAA Program Manager that the turnaround time between grant offer and grant acceptance by the sponsors will be very short.
Because the City of Gainesville retains title to the land upon which Gainesville Regional Airport operates, the City of Gainesville, in addition to the Gainesville-Alachua County Regional Airport Authority (GACRAA), must formally accept all federal grant offers. GACRAA did approve a Resolution accepting the anticipated $2,400,000.00 grant at its regular monthly meeting held on March 26, 2009.
Fiscal Note
This US Department of Transportation FAA - AIP Grant is expected to be equal to the application amount of $2,400,000.00 with proceeds for the listed improvements to be received by the Gainesville Regional Airport.
Recommendation
The City Commission: 1) hear a brief presentation from staff regarding this request; 2) adopt the proposed 2009 FAA - AIP Grant Resolution and authorize the Mayor and City Attorney to execute said Grant Agreement and the City Clerk to certify said Grant Agreement; and, 3) execute the Indemnification Agreement subject to City approval by the City attorney as to form and legality.