REPORT TO THE CITY COUNCIL FROM: HENRY L. THOMPSON, Director of Aviation Airports Department BY: MARY BOYAJIAN, Business Manager Airports Department SUBJECT ..Title ***RESOLUTION - Authorizing the Director of Aviation or other authorized representative to: execute all implicated documentation for pre-application and application to the Federal Aviation Administration (FAA) for Airport Improvement Program (AIP) grants for federal fiscal years 2025 and 2026 for both Fresno Yosemite International Airport (FAT) and Fresno Chandler Executive Airport (FCH), accept FAA AIP grant(s) for FY 2025 and FY 2026 projects at both airports including all subsequent amendments thereto offered by the FAA; and apply for and accept grants and all subsequent amendments thereto offered by the California Department of Transportation Aeronautics Division for matching funds for FY 2025 and 2026 FAA grants for the Fresno Chandler Executive Airport. (Requires 5 Affirmative Votes) (Subject to Mayor's veto) ..Body RECOMMENDATION Approve the attached biennial Resolution authorizing the Director of Aviation or other authorized representative to execute all implicated documentation for grants and amendments thereto for both Fresno Airports, from either the Federal Aviation Administration or the California Division of Aeronautics, for FY 2025 and FY 2026. EXECUTIVE SUMMARY The requested Resolution will allow pre-application, application, acceptance of grants and amendments, and execution of all related documents by the Director of Aviation or other authorized representative of the City for grants which may be offered by the FAA and the California Department of Transportation Division of Aeronautics (State) to both Fresno airports. The FAA is expected to offer 90% funding for Federal Fiscal Years (FFY) 2025 and 2026. The State offers grants only to FCH, which are 5% of the federal funding amount of eligible project cost. The approved Resolution must be submitted each year with the application documents. The projects identified for this next two year cycle support the Department's ongoing obligation to keep both airports safe and viable, and will generate construction-related jobs. The following required actions are permitted by the Resolution; (i) submit to the FAA and the State a required five-year Airport Capital Improvement Plan (ACIP), FAA grant Pre-Applications, and Applications for FFY 2025 and 2026 grants for both airports, (ii) accept FFY 2025 and FFY 2026 FAA grants and amendments for improvements at both airports, and (iii) apply for and accept grants and amendments as may be offered from the State (used for matching funds on FFY 2025 and FFY 2026 approved projects at FCH only). BACKGROUND Each FFY, the Department receives entitlement and discretionary grants from the FAA for a portion of eligible capital project costs at both Fresno airports based upon: (i) the number of passengers enplaned at FAT, (ii) the pounds of air cargo transported to FAT, (iii) the status of FCH as a "reliever" airport, and (iv) the priority of eligible projects within the FAA Western Pacific Region. The FAA is expected to offer 90 percent (90%) funding for FFY 2025 and 2026. Additional FAA discretionary grants may be received based upon applications made, federal priorities within the five-year ACIP, and the availability of funding. The Department will provide the required matching funds from local Measure C revenues (as they are received during the year) and Airport revenues. For FCH, additional matching funds may come from the State (5 percent of eligible federal funded project cost). The five-year ACIP is the FAA's planning document to program future AIP grant funding, and is re-submitted each year for the next five years; thus refining the five-year look ahead each year. Securing FAA AIP grants includes a year-in-advance application process, for projects included in the five-year ACIP, which is the reason this Resolution permitting grant related activities must be available in advance. FFY 2025 and FFY 2026 grant processing will occur under this new Resolution. FFY 2024 grant processing was accomplished using the previous Resolution 2022-266, valid for FFY 2023 and 2024. The attached updated biennial Airports Grants Resolution gives the Director of Aviation or another authorized representative the authority to comply with the FAA required application processes for FFY 2025 and 2026, the five-year FAA planning process (ACIP submittal), and the grant acceptance process for FFY 2025 and 2026 grants that may be offered to both airports. The same authorities are given for the State grants to the FCH airport. The attached Resolution has been approved as to form by the City Attorney's Office. All required local match funding will be provided from Local Measure C revenues (as they are received during the year) and Airport revenues. The projects currently associated with this Resolution which have been identified in the City's approved FY 2025 budget are comprised of the following: Federal Fiscal Year 2025 Federal Share 90% FAT Part 150 Noise Mitigation Program $ 3,452,100 FAT Tower ATCT Replacement (Env. & Design) $ 3,100,000 FAT Rwy 11L/29R Reconstruction (Env. & Design) $ 4,400,000 FAT ARFF Vehicle Acquisition $ 1,200,000 FAT Taxiway B Minor Rehab $ 1,600,000 FAT RTR Relocation $ 3,000,000 FCH Taxiway A Reconstruction $ 2,300,000 Federal Fiscal Year 2026 Federal Share 90% FAT Part 150 Noise Mitigation Program $ 3,400,000 FAT Runway 11L/29R (cons) $ 22,500,000 FAT Tower ATCT Replacement (Const.) $ 75,000,000 FCH Runway Replacement $ 1,500,000 ENVIRONMENTAL FINDINGS This Resolution is not a "project" for the purposes of CEQA pursuant to CEQA Guidelines, Section 15378. LOCAL PREFERENCE Local preference was not considered because the Resolution does not include a bid or award of a construction or services contract. FISCAL IMPACT There is no impact to the General Fund from this action. Approval of the Resolution will allow the Airports Department to continue applying for and accepting grants from both the FAA and the California Division of Aeronautics for projects listed in the City's approved FY 2025 and FY 2026 Budgets, using matching funding provided by local Measure C, Passenger Facility Charges (PFC's) and Airport Revenues. Attachment: Resolution - Airports Grants FFY 2025 and FFY 2026