TO: Board of Supervisors
FROM: Steven Lederer - Department of Public Works, Airport
REPORT BY: Greg Baer, Airport Manager
SUBJECT: Authorize the Airport Manager to Submit an Application and Execute a FAA ARPA Grant
RECOMMENDATION
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Director of Public Works requests authorization for the Airport Manager to submit an application and execute a Federal Aviation Administration (FAA) American Rescue Plan Act of 2021(ARPA) grant agreement in the amount of $148,000 for costs related to responding to the COVID-19 pandemic.
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EXECUTIVE SUMMARY
The ARPA legislation was signed into law on March 11, 2021 and provided approximately $8 billion in funds to be awarded as economic relief to eligible U.S. airports to prevent, prepare for, and respond to the COVID-19 pandemic. Based on FAA allocation formulas, the Napa County Airport is eligible for a grant in the amount of $148,000, with no matching funds required. Upon approval of the requested action, the Airport Manager will submit a completed FAA ARPA grant application which is expected to generate a grant offer within a couple of weeks, which the Airport Manager will execute, allowing the airport to take advantage of these funds in a short amount of time.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
Revenue source is Federal Funding - Federal Aviation Administration |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
As part of the Federal Government’s ARPA legislation, qualifying U.S. airports are eligible to receive grant funds with no match requirements to help offset financial impacts associated with the COVID-19 pandemic. By submitting an application, the Napa County Airport expects to receive $148,000 to be used for operations and maintenance costs. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
None |
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Consequences if not approved: |
The County would not be able to take advantage of this opportunity to receive $148,000 to help offset the significant decline in airport revenues because of the COVID-19 pandemic. |
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County Strategic Plan pillar addressed: |
Effective and Open Government |
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Additional Information |
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ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as dedefined by 14 California Code of Regulation 15378
BACKGROUND AND DISCUSSION
The Coronavirus Aid, Relief, and Economic Securities (CARES) Act was signed into law on Marcy 27, 2020 and include $10 billion in funds to be awarded as economic relief to eligible U.S. Airports affected by the COVID-19 pandemic. The Napa County Airport received and expended $67,000 from the CARES Act to pay for airport operations and maintenance costs in fiscal year 2020-21.
On December 27, 2020 the Coronavirus Response and Relief Supplemental Act (CRRSAA) was signed into
law to provided nearly $2 billion in funds to be awarded as economic relief to eligible U.S. airports and eligible concessions at these airports to prevent, prepare for, and respond to the COVID-19 pandemic. Based on FAA allocation formulas, the Napa County Airport received a grant amount of $57,000 with no match required, to pay for ongoing airport operations and maintenance.
On March 11, 2021, the American Rescue Plan Act of 2021 (ARPA) was signed into law providing $8 billion
in economic relief to eligible airports to prevent, prepare for, and respond to the impacts of the COVID-19 pandemic. The FAA will award the ARPA grant at a 100% Federal share so there is no local match required. Funds may be used for costs related to operations, personnel, cleaning, sanitization, janitorial services, combating the spread of pathogens at the airport, and debt service payments incurred on or after January 20, 2020. Operational expenses are those expenses necessary to operate, maintain, and manage an airport. They include expenses such as payroll, utilities, and service contracts.
Upon approval of the requested action, the Airport Manager will submit a completed FAA ARPA grant application which is expected to generate a grant offer within a couple of weeks. Subsequent to the Airport Manager’s execution of the grant agreement, it is anticipated that the funds will be dispersed. Staff will return to the Board with a request to increase appropriation and grant close-out will occur within approximately three to four months.
SUPPORTING DOCUMENTS
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