10 - Letter of Interest for funding new fuel farm at Cox Field

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Item No. 10 TO: Mayor, Mayor Pro -Tem & City Council Grayson Path, City Manager FROM: Paul Strahan, Airport Manager / FBO Operator SUBJECT: Letter of Interest — Infrastructure Investment and Jobs Act (IIJA) Funding DATE: May 13, 2024 BACKGROUND: Our existing fuel farm has exceeded its life expectancy and in order to continue to grow our airport, a new fuel farm must be established. STATUS OF ISSUE: TXDOT is needing a Letter of Interest (LOI) from the City expressing our desire to use IIJA funds for a new fuel farm. IIJA funding has been approved for construction of new fuel farms. Fiscal Years 2022, 2023, 2024, and 2025 IIJA are now available and have built up to $1.172 Million. TXDOT has quoted Cox Field a new fuel farm at $1.2 Million. This project is eligible for a 90/10 split, making the financial match from the city at $120,000 in FY24/25 or FY25/26 (TBD). BUDGET: Should TxDOT approve our request, the City would need to budget $120,000 in either FY24/25 or FY25/26 (TBD). As with our current runway rehabilitation project, it is highly recommended that the city identify the 10% necessary to receive in excess of $1 million (90% share) in grant funding for this much needed project. The City Manager is confident that this match amount can either be identified in a future budget, or pulled from reserve. The City Council retains the right to still reject the project prior to signing any agreement as this LOI does not bind us to proceeding. In addition, the funding for FYs 2022 — 2025 from TxDOT needs to be spent, this is our recommended best use for those funds. RECOMMENDATION: Approve a Resolution approving a Letter of Interest to the Texas Department of Transportation Aviation Division as to Infrastructure Investment and JOBS Act (IIJA) Funding for a new Fuel Farm at Cox Field Airport; and authorizing the City Manager to execute same; and authorizing a cash match for the Project.