Report Prepared by: Frank Quintero, Deputy City Manager
Title
SUBJECT: Request to Authorize a Supplemental Appropriation from Unreserved, Unencumbered Fund Balance from Fund 561, Airport Operations, in an amount not to exceed $600,000.00 for Commercial Airport Terminal Planning Study, Design, and Environmental Services
REPORT IN BRIEF
Considers approving a supplemental appropriation within Fund 561, Airport Operations, in the amount of $600,000.00, to pre-fund Airport grants for Airport feasibility study, design, and environmental services.
RECOMMENDATION
City Council - Adopt a Motion:
A. Approving a supplemental appropriation from the unreserved, unencumbered fund balance in Fund 561, Airport Operations, in an amount not to exceed $600,000.00 to account 561-1303-562.17-00 Professional Services; and,
B. Authorizing the Finance Officer to make the necessary budget adjustments.
Body
ALTERNATIVES
1. Approve as recommended by Staff; or
2. Approve, subject to conditions as specified by the City Council; or,
3. Refer to staff for reconsideration of specific items as requested by the City Council; or
4 Defer action until a specific date; or
5. Deny the request.
AUTHORITY
Charter of the City of Merced, Section 200, et seq. and Section 3.04.120 of the Merced Municipal Code.
CITY COUNCIL PRIORITIES
As provided for in the 2022-2023 Adopted Budget.
DISCUSSION
In May 2022, the City of Merced made grant application to the Federal Aviation Administration for Federal Assistance (Development and Equipment Projects) in the amount of $349,099.00. Federal Aviation Administration (FAA) representatives confirmed that the FAA received the application and is under review. When awarded, the grant funds will be used for a commercial airport terminal planning study relative to the terminal located at 20 Macready Drive.
The study will determine the level of modification, expansion, and construction that can be made to the terminal at the Merced Yosemite Regional Airport. To prepare for the short turnaround times provided by the various FAA-related grant funds, the City issued a Request for Qualifications and secured the services of Mead and Hunt and RS&H to assist with the terminal planning study, design, environmental review, and other airport Capital Improvement Projects. The airport engineering consultants were selected under FAA guidelines.
Of the $600,000 requested in the supplemental appropriation, $350,000 will be used as pre-grant funding to pay for the terminal feasibility study. Mead and Hunt was selected to prepare the feasibility study. Once the grant is awarded, the City will be reimbursed for the same amount.
In upcoming months, staff will make grant application for the design and environmental review through the Federal Aviation Administration. To maintain momentum and meet tight timelines, the City will need to advance funds for the design and environmental review portions of the process. Again, when the grant is awarded, the City will be reimbursed.
The Merced Yosemite Regional Airport terminal needs substantial improvements and modifications to enhance the customer, visitor, and pilot experience. The combined funding sources from the CARES Act, and Airport Improvement Project grant, provide the opportunity for renovating the terminal and constructing airport-related capital improvements.
IMPACT ON CITY RESOURCES
A supplemental appropriation of $600,000 is needed to fund the commercial airport terminal planning study and subsequent design and environmental review studies. Funding is available in the unreserved, unencumbered fund balance in Fund 561 - Airport operations.
ATTACHMENTS
None.