Agenda Memo

City of Boulder City Council Agenda Item Meeting Date: September 17, 2026 Agenda Title Consideration of a motion to approve an application to Federal Aviation Administration (FAA) Airport Improvement Grant (AIG) FY24 in the amount of $144K for reimbursement of design and construction administration costs associated with a 2026 pavement maintenance project at the Boulder Municipal Airport

Staff Contact • • •

Blythe Bailey, Director, Transportation & Mobility Eric Vences, Airport Manager, Transportation & Mobility Luis Toro, Senior Counsel, City Attorney's Office

Draft Motion Language Staff requests council consideration of this matter and action in the form of the following motion: Consideration of a motion to approve an application to Federal Aviation Administration (FAA) Airport Improvement Grant (AIG) FY24 in the amount of $144K for reimbursement of design and construction administration costs associated with a 2026 pavement maintenance project at the Boulder Municipal Airport.

Executive Summary The purpose of this item is for City Council to authorize staff to pursue an FAA grant for reimbursement of design and construction administration services provided for a CIP project approved during the March 5, 2026 Regular City Council Meeting. City Council met in July to discuss future airport policy and affirmed indefinite operation of the Boulder Municipal Airport. The approved motion authorized staff to prepare application

materials to bring back to City Council to approve the first FAA grant that purports to come with perpetuity obligations. This FY24 AIG grant is in the amount of $144K and would be earmarked to reimburse the airport for professional services on a pavement maintenance project scheduled for Fall 2026. More importantly than the specific dollar value of this grant, approval of this grant is a prerequisite for meaningful participation in the CIP planning process potentially impacting $1.9 million in grant funding for 2027 and 2028 projects. As explained further in the below Analysis section, because meaningful participation in the 5-year CIP planning process, which begins in September of 2016, requires confidence that the City will once again pursue federal grants, and because that process locks in allocations for 2027 and 2028, we believe approval of this grant is a prerequisite for additional dollars that could become available through participation in that process.

Council Action Options Option

Outcome

Approve motion language as drafted

If the motion is approved Staff will pursue this Federal Aviation Administration grant.

Define and adopt a modified motion

Council would need to define any modifications or amendments to the draft motion language.

Deny the motion or take no action

If this motion is denied Staff will not pursue this opportunity to recover costs scheduled for this year.

Refer back to staff

If council refers this item back to staff the CIP planning cycle in fall 2026 would be at risk of limited participation.

Alignment with City Plans and City Council History Sustainability, Equity and Resilience (SER) Framework and Citywide Strategic Plan Alignment SER Framework Goal Area This item connects to the safe and responsibly governed SER goal areas.

Citywide Strategic Plan Safe: This item meets the safe SER goal area through strategy 2 advance efforts to enhance regional disaster prevention, preparedness, and response that leverage existing partnerships and prioritize city investments. Responsibly governed: This item meets the responsibly governed SER goal area through strategy 12 implement organizational and financial best practices to continuously improve asset management, customer experience, and project and program performance.

Alignment with Additional City Plans Transportation Master Plan Description: “The city will ensure the BMA continues to meet the needs of the community by providing a safe environment for aviation business and business-related travel, scientific and research flights, recreation and tourism, flight training and vocational education, aerial fire fighting, emergency medical flights as well as flood and other disaster-related support.” Action Plan: “Airport: Update the Airport Master Plan and work with the public airport to broaden its value to the community and prepare for any Advanced Mobility opportunities that may utilize it for passenger or freight delivery.” The professional services supporting the pavement preservation project is in alignment with this plan. Airport Master Plan - 2007 The most recently adopted Airport Master Plan update identified many of the same core issues that remain relevant today, including long-term financial sustainability, community impacts of airport operations, and the need to and cost of maintaining aging infrastructure. The professional service supporting the pavement maintenance project is in alignment with the current plan.

City Council History Related items previously came before Council on the following dates: March 05, 2026 – City Council Regular Meeting Resolution 1372 July 23, 2026 – City Council Public Hearing Airport Discussion

Analysis By authorizing this grant proposal as shown in Attachment A - Grant Application Materials, City Council will enable staff to pursue reimbursements for an FAA eligible project under FY26 budget. accounting for a 16% increase in revenue.

The previously approved project is for crack seal and seal coats of Runway 8-26 pavement, and Taxiway pavement at the Boulder Municipal Airport (BDU) to extend its useful life. This AIG ‘24 grant proposal is to reimburse for the professional design and construction administration services tied to this project. The July 23, 2026 Public Hearing also centered on discussion around purported perpetual grant assurances. The following analysis is meant to provide clarity on the decision associated with this motion, particularly with regard to the potential for perpetual obligations. We anticipate the grant opportunity in hand to carry a 3-year grant assurance for the described professional services in support of a pavement maintenance project, which also carries a 3-year grant assurance period. However, in December 2022, the FAA revised its standard grant assurances suggesting that, thereafter, acceptance of a federal grant would be assuring the City of Boulder is bound to maintain the airport in perpetuity as a result of our acceptance of 1959 and 1977 grants for land. Notably, the City believes the new standard grant assurance language goes beyond the authority granted to the FAA by Congress. Please see Attachment B - FAA Assurances Airport Sponsors, under paragraph B.1 for more specificity on perpetuity expectations for land/real property acquisition. Also note, Attachment B is a recent sample of grant assurances and not necessarily the grant assurances that will accompany the grant if it is awarded. Authorizing this grant proposal will enable staff to pursue all means of funding, including FAA funding and leveraging State dollars as matching funds for eligible projects as determined by the FAA and CDOT during future annual CIP planning and programming discussions. The earliest CIP planning session following this decision will begin the Fall of 2026. Included below is a sample timeline of the CIP planning process from the CDOT Division of Aeronautics Programs and Procedures Manual which references the upcoming, timely, process through which additional grant funds are made available. Please make note of the line noted as Modify, which reflects the time sensitivity of the 2027 and 2028 capital projects. Due to one outcome of the July 23 discussion which requires the City Council to approve the City’s first FAA grant application, this approval is necessary as a prerequisite for our meaningful participation in the upcoming CIP planning process. Without legislative approval to accept grants, before the September ‘26 CIP planning process begins, the City’s participation will be in question, as it has since 2021. Lacking legislative approval to apply for FAA grants before the upcoming CIP planning process, our hoped-for grant allocations likely would be dismissed, meaning, the City can expect zero allocations in the 5-year cycle. Since the CIP planning process locks in place those allocations for the first two years of the cycle, 2027, and 2028, and since our current draft CIP list includes projects of a substantial

value, the authorization herein to apply for and accept $144k comes with implications for an additional $1.9M in non-local grant funding opportunities associated with the 2027 and 2028 years of the upcoming 5-year CIP process.

Equity Analysis An equity analysis was not performed for this project as it is for a grant proposal for professional services on an approved CIP project.

Fiscal Note Estimated Fiscal Impact Narrative This $144K grant comes with a requirement for the city to provide a 5% local share of $7,200, which will not have a material impact on the 2026 budget. The local match will be reallocated from the previously approved project budget, made possible through project savings resulting from low bids for the construction portion of the Runway & Taxiway crack fill and seal coat project. The grant revenue will offset current capital expenditure occurring this year associated with this pavement maintenance project. Staff will bring forward the appropriation for City Council review and approval at the 2026 Second Adjustment-to-Base, per standard procedures. Current Year Estimated Fiscal Impact Fund(s): Airport Fund Department(s): Transportation & Mobility Program(s): Airport

FY 2026 Budget

FY 2026 Estimated Impact

FY 2026 Net Change

Beginning Fund Balance

$0.34M

$0.0M

$0.34M

Total Forecasted Revenue

$0.88M

$0.14M

$1.02M

Total Estimated Expenses

$1.35M

$0.0M

$1.35M

Ending Fund Balance(s) After Reserves

-$0.32M

$0.14M

-$0.20M

FTE

4.0 FTE

Item

4.0 FTE

Three-Year Estimated Fiscal Impact

Item

FY 2026

FY 2027

FY 2028

Total Forecasted Revenue

$0.14M

$0.0M

$0.0M

Total Estimated Expenses

$0.0M

$0.0M

$0.0M

Net Estimated Impact

$0.14M

$0.0M

$0.0M

Climate, Resilience, and Sustainability Considerations There are no climate, resilience and sustainability considerations for this item as it is a grant proposal for professional services on an approved CIP project.

Community Engagement There was a public hearing held on July 23rd with City Council guidance that followed the hearing to pursue indefinite operation of the Boulder Municipal Airport.

Workplan Considerations This item fits within the Airport work plan under the Runway and Taxiway Pavement Preservation line item and will not impact other work plan items.

Next Steps for City Council There will be no further Council action required on this project if this motion is approved.

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Attachments Attachment A – Grant Application Materials Attachment B – FAA Assurances Airport Sponsors