10 - Letter of Interest for funding new fuel farm at Cox FieldItem 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.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
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; AUTHORIZING THE CITY MANAGER TO
EXECUTE SAME; AND AUTHORIZING A CASH MATCH FOR THE
PROJECT; MAKING OTHER FINDINGS AND PROVISIONS AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, the fuel farm at Cox Field Airport has exceeded its life expectancy and the
airport is in need of a new fuel farm to support growth; and
WHEREAS, Infrastructure Investment and Jobs Act (IIJA) funding is available from
the Texas Department of Transportation Aviation Division (TxDOT) in the amount of
$1,172,000.00 for construction of a new fuel farm; and
WHEREAS, the fuel farm project is eligible for this funding, and the grant will require
a cash match by the city of 10% or approximately $120,000.00; and
WHEREAS, TxDOT requires a Letter of Interest from the city expressing interest in
using the IIJA funds for the project;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby in
all things approved and are incorporated herein for all purposes.
Section 2. That the City Council approves the Letter of Interest attached hereto as
Exhibit A and authorizes the City Manager to execute same on behalf of the City.
Section 3. That the City Council approves a cash match in the approximate match of
ONE HUNDRED TWENTY THOUSAND AND NO/100 DOLLARS ($120,000.00) to be
budgeted towards the construction of a new fuel farm at Cox Field Airport as required by
TxDOT rules.
Section 4. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this 13th day of May, 2024.
Reginald B. Hughes, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
May 13, 2024
Texas Department of Transportation Aviation Division
Attn: Dan Harmon, Director of Aviation
6230 E Stassney Ln
Austin, TX 78744
RE: Letter of Interest — Infrastructure Investment and Jobs Act (IIJA) Funding
Dear Mr. Harmon,
The City of Paris is requesting the use of our Infrastructure Investment and Jobs Act (IIJA) Funding for
a much-needed new fuel farm. 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.
It is our understanding that Fiscal Years 2022, 2023, 2024, and 2025 IIJA funds will total $1,172,000 and
be available for this project. TXDOT recently quoted the Paris Airport $1.2 million for a new fuel farm and
informed us that this type of project is eligible to be a 90/10 split. The City is aware that a 10% match is
required and will be prepared to budget the required match amount.
We request that this project be considered for approval. If you have any questions, please contact Paul
Strahan, Airport Manager at pstrahan@paristexas.gov or 903-784-4648. We appreciate your attention to
our request.
Thank you,
Grayson Path
City Manager
EXHIBIT A