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Approve an Appropriation Transfer Request recognizing $85,000 in unanticipated Federal Aviation Administration grant reimbursement revenue from the Northeast Hangar Taxilane Reconstruction Project, offset by increased appropriations for Airport operational and capital needs, including Airport management software, professional design services to address a hangar water intrusion issue, and reduction of the Airport’s General Fund loan associated with prior hangar construction (4/5 vote required)
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of General Services recommends that the Board of Supervisors approve an Appropriation Transfer Request (ATR) recognizing $85,000 in unanticipated Federal Aviation Administration (FAA) grant reimbursement revenue from the Northeast Hangar Taxilane Reconstruction Project, offset by increased appropriations for Airport operational and capital needs, including Airport management software, professional design services to address a hangar water intrusion issue, and reduction of the Airport’s General Fund loan associated with prior hangar construction (4/5 vote required).
SUMMARY:
In 2023, the Airport was awarded an FAA grant to support the administration and redesign of the Northeast Hangar Taxilane Reconstruction Project (Project). During the course of the Project, the FAA required the reconstruction work to be divided into multiple phases, which resulted in additional design and engineering costs beyond those originally anticipated. Although the Airport previously received a design grant for the Project in 2019, those funds did not cover the added costs associated with the FAA’s revised phasing requirements. As a result, the Airport temporarily used its own available operating funds to cover approximately $85,000 in additional design-related expenses necessary to keep the Project moving forward.
In FY2025/26, the Airport received reimbursement from the FAA for these eligible costs as part of the Project’s final grant reimbursement process. Because the reimbursement was received after the County’s annual budget was adopted, the revenue was not included in the original FY2025/26 budget projections.
The reimbursement restores Airport funds that had previously been spent on the Project and provides the Airport with additional flexibility to address current operational and facility needs.
The Airport recommends the Board of Supervisors approve the use of these restored funds for procurement and implementation of updated Airport management software and professional design services to address a longstanding seasonal hangar water intrusion issue. Any remaining funds will be applied toward reducing the Airport’s outstanding General Fund loan associated with prior hangar construction, which is typically repaid through the Airport’s operating fund. Applying these funds will help reduce future repayment obligations.
FINANCIAL IMPACT:
The Airport received $85,000 in FY2025/26 as reimbursement for prior design costs that were originally funded through the Airport’s budget. The $85,000 in FAA reimbursement revenue will fully cover the $27,500 cost of software acquisition, configuration, and first-year implementation, including training, as well as the $5,000 cost for design services to develop a solution for the hangar water intrusion issue.
The remaining $52,500 will be applied toward reducing the Airport’s General Fund loan associated with the T-hangar construction project. The Airport continues to prioritize reducing this loan balance.
The costs associated with preparing the agenda item are nominal and absorbed by the department’s FY2025/26 Working Budget.
DISCUSSION:
The Airport recommends reinvesting the reimbursement of previously funded costs into current operational and facility needs that directly support Airport operations.
Airport Software
The Airport’s current software systems are outdated and do not adequately support tenant billing, maintenance and inspection tracking, safety management documentation, and reporting. Updated software will improve efficiency, reduce manual processes, enhance accuracy, and address issues identified in previous County audits. Allocating these funds now will allow timely implementation and avoid continued reliance on inefficient legacy systems.
Hangar Water Intrusion
In 2019, two hangar buildings containing a total of 26 T-hangars (nested T-shaped individual aircraft storage units arranged in rows) were constructed in the northeast area of the Airport. Several of these hangars have experienced seasonal water intrusion, resulting in one to two inches of standing water during winter months. The County has pursued prior repair efforts; however, these have not fully resolved the issue. As the property owner, the County has an obligation to maintain the hangars in serviceable condition. The proposed design services will help identify a long-term solution to address the water intrusion.
Remaining funds will be applied toward reducing the Airport’s General Fund loan, which was the original funding source for the T-hangar construction project.
ALTERNATIVES:
The Board of Supervisors could choose not to approve or to defer the ATR for Airport management software and design services; however, this is not recommended as it would delay needed operational improvements, prolong reliance on outdated systems, affect the timely use of FAA funds, and does not address the County’s obligation to maintain hangars in serviceable condition.
OTHER AGENCY INVOLVEMENT:
Airport staff have coordinated with the Department of Information Technology, Public Works, General Services, and the Federal Aviation Administration.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION