Title
Airports, a division of the Chief Administrative Office, recommending the Board take the following actions pertaining to Federal Aviation Administration and State Matching grants for the Placerville Airport:
1) Approve and authorize the Airports Director or Chief Administrative Officer to execute a United States Department of Transportation, Federal Aviation Administration Airport Improvement Program Grant Agreement for the Install New Airport Beacon and Tower Project - Design, in an estimated amount of $91,390 with a maximum County match of $4,810, for a four-year term effective upon execution, contingent upon County Counsel approval;
2) Approve and authorize the Airports Director or Chief Administrative Officer to execute a United States Department of Transportation, Federal Aviation Administration Airport Infrastructure Grant Agreement for a Pre-Design Study for the Construct New Hangar - Structure & Site Work Project, in an estimated amount of $133,570 and a County match of $7,030, for a four-year term effective upon execution, contingent upon County Counsel approval;
3) Approve and authorize the Airports Director or Chief Administrative Officer to execute a State of California, Department of Transportation (Caltrans), Aeronautics Division Airport Improvement Program Matching Grant for the Install New Airport Beacon and Tower Project - Design, if successful, in an estimated amount of $4,570, contingent upon County Counsel approval; and
4) Authorize the Airports Director or Chief Administrative Officer to execute and administer any subsequent administrative documents and required fiscal or programmatic reports related to the grants, including amendments that do not increase Net County Cost, contingent upon County Counsel approval.
FUNDING: Federal Aviation Administration Grant Funding (95%) and General Fund (5%) with the potential for a reduced General Fund contribution due to the potential for a Caltrans Airport Improvement Program State Matching Grant.
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DISCUSSION / BACKGROUND
In accordance with Board Policy A-6, Grant Applications, the Airports Division submitted applications for a Federal Aviation Administration (FAA) Airport Improvement Program (AIP) grant for the Install New Airport Beacon and Tower Project - Design, and a FAA Airport Infrastructure Grant (AIG) for a Pre-Design Study for the Construct New Hangar - Structure and Site Work Project. FAA grants normally fund 90% of eligible project costs; however, for Federal Fiscal Year 2025 and 2026, the FAA increased its funding to 95% of eligible project costs. Therefore, the County’s General Fund only needs to fund the required 5% match, rather than the normal 10% match, estimated at $4,810 and $7,030, respectively.
On July 11, 2025, the FAA posted on its website its third announcement of 2025 AIP grants and the AIP grant for the Install New Airport Beacon and Tower Project - Design is on the list. The FAA will send grant offers with grant award letters and grant agreements to the County (sponsor) for signature, and these will include a firm date by which the grant agreements must be signed and returned. This is typically a very compressed time frame and has been as few as one or two days to return the grant agreements. The grant agreements are a standard federal grant agreement, and the County will be unable to make any changes. Due to this compressed time frame for completing the grant agreements, the Chief Administrative Office Airports Division (Airports Division) requests advance approval and acceptance of these funds and requests that the Board authorize the Airports Director or the Chief Administrative Officer to execute the documents for the FAA grants, contingent upon County Counsel review and approval, estimated at $91,390 for the Install New Airport Beacon and Tower Project - Design and $133,570 for the Pre-Design Study for the Construct New Hangar - Structure & Site Work Project.
Airports Division staff will forward the FAA grant agreements to County Counsel for expedited review, and upon approval, the Airports Director or the Chief Administrative Officer will execute the original and sponsor copies of the grant agreements, and staff will forward the grant agreements back to County Counsel for the required attorney certification on the grant agreements, which must follow the sponsor’s authorized representative’s signature.
In accordance with Board Policy A-6, Grant Applications, the Airports Division intends to apply for a State of California, Department of Transportation, Aeronautics Division (State) AIP Matching Grant for the Install New Airport Beacon and Tower Project - Design, which, if received, would fund five percent of the FAA AIP grant amount. FAA Airport Infrastructure Grants are not eligible for State AIP Matching Grants.
State AIP Matching Grants were not programmed in the Fiscal Year 2025-26 budget, as these funds have become unreliable; General Fund was included instead. If the County is awarded a State AIP Matching Grant, a portion of the General Fund County match, estimated at $4,570, will be replaced with the State matching funds. The Airports Division cannot apply for the State AIP Matching Grant until the FAA AIP grant agreement is executed, which will compress the time frame for issuing the Notice to Proceed to start the design of the Install New Airport Beacon and Tower Project at the Placerville Airport. To expedite this process and keep the Project on schedule, the Airports Division requests that the Board authorize the Airports Director or the Chief Administrative Officer or designee to execute the documents for the State AIP Matching Grant, contingent upon County Counsel review and approval.
The two FAA grant applications are attached (Attachments A and B). The State AIP Matching Grant Agreement for a current project, administered under a similar process, is attached as an example (Attachment C).
Install New Airport Beacon and Tower Project - Design (Airport Capital Improvement Program (ACIP) 35401008)
A new beacon is needed to update the existing facility to make the beacon more efficient and reduce maintenance. The new tip-down tower will allow safer beacon light replacement and maintenance. This project will include the new beacon and 55-foot-tall tip-down tower on a new concrete foundation, new pull box and duct near the new tower location, new cable in existing duct, and electrical upgrades in the existing electrical vault. The new beacon and beacon tower will improve safety of operations at the Placerville Airport. The FAA AIP grant is for the engineering design of this project.
Pre-Design Study for the Construct New Hangar - Structure & Site Work Project (ACIP 35401012)
The Placerville Airport has a waiting list for hangars and the Airports Division proposes to construct a new hangar building to accommodate the demand. A pre-design study is required to define the project scope prior to proceeding with preparation of the environmental document and it will include determination of water source and new waterline location for fire protection required to meet local standards, determination of the source for electrical power and new duct and cable location to provide electrical service to the hangar building, evaluation of requirements to accommodate additional drainage capacity resulting from the construction of the hangars, architectural schematic design to define the building sizing, configuration and heights, and gathering environmental data related to the new hangars and cost estimates to confirm the scope of the project matches the available AIG funds.
ALTERNATIVES
The Board could choose not to approve any or all of the grant agreements, which would result in the County not receiving grants that will fund 95% (FAA) of eligible project costs for the two projects listed above, with the potential for a reduced General Fund contribution on the Install New Airport Beacon and Tower Project - Design due to the potential for a Caltrans AIP State Matching Grant.
PRIOR BOARD ACTION
Legistar file 24-1891 - November 5, 2024 - Approve the 2024 Airport Capital Improvement Program.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
If approved, County Counsel will review and approve the FAA grant agreements and will provide the required attorney certification on the grant agreements. If the County is successful in obtaining a State AIP Matching Grant, County Counsel will review and approve the State grant agreement.
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The two projects are included in the 2024 ACIP and Fiscal Year 2025-26 budget.
The Install New Airport Beacon and Tower Project budget in the 2024 ACIP also includes half of the cost for the development of the required FAA Disadvantaged Business Enterprise (DBE) Program (the other half is in Georgetown ACIP Project 35402010) and the cost for the Placerville Airport DBE calculations. These costs are eligible for 95% reimbursement in the FAA AIP grant for the design of the Install New Airport Beacon and Tower Project.
Funding for the Install New Airport Beacon and Tower Project - Design and the Pre-Design Study for the Construct New Hangar - Structure & Site Work Project will be provided by the FAA (95%) with the local match from the General Fund (5%). Specific breakdowns per grant are as follows:
Should the FAA grant for the Install New Airport Beacon and Tower Project - Design be approved and executed, the total will be $96,200, utilizing $91,390 FAA and $4,810 General Fund.
Should the grant for the Pre-Design Study for the Construct New Hangar - Structure & Site Work Project be approved and executed, the total will be $140,600, utilizing $133,570 FAA and $7,030 General Fund.
If the County is successful in receiving a State AIP Matching Grant for the Install New Airport Beacon and Tower Project - Design, a portion of the General Fund funding (5% of FAA AIP grant amount) will be replaced with the State matching funds, estimated at $4,570, which would reduce the County’s General Fund contribution from $4,810 to $240.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Jennifer Franich, Deputy Chief Administrative Officer, Airports Director