IOWA DOT STATE GRANT FOR 2026/27 AIRPORT FACILITY IMPROVEMENTS (FUEL FARM REPLACEMENT - AVGAS TANK)
The Capital Improvements Plan includes replacement of the Aviation Gasoline (AvGas) fuel tank at the Ames Municipal Airport in the FY 2026/27 Airport Facility Improvements Program. This program addresses the modernization of fueling facilities for safety, storage, and environmental protection by replacing the existing underground AvGas system with a modern above-ground fuel system.
On April 28, 2026, the City Council approved submission of an Iowa Department of Transportation (Iowa DOT) State Airport Improvement Program grant application requesting $400,000 toward the AvGas portion of the Airport Fuel Farm reconstruction project. The grant application included a total estimated project cost of $533,333, based on a 75% State and 25% local cost share.
As part of that action, the City Council committed $133,333 in local matching funds, consisting of $100,000 in previously issued G.O. Bonds and $33,333 from the Airport Improvements Fund.
The Iowa Transportation Commission approved the City's grant application on August 11, 2026. On September 10, 2026, the Iowa DOT provided the City with a grant agreement for the Fuel System Improvements - AvGas project. The agreement identifies the project as Project No. 9I270AMW100 and Contract No. CNTRT-00010650.
The grant agreement provides reimbursement for 75% of eligible project costs, up to a maximum State contribution of $400,000. The approved project funding is summarized below:
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The AvGas and Jet Fuel projects were programmed across two fiscal years to maximize available grant funding. However, staff intends to design and bid both projects together as a single project because this is anticipated to be the most cost-effective approach and will allow the entire fuel farm to be constructed under one contract.
- Adopt a resolution approving the State of Iowa Airport Improvement Program Grant Agreement for the FY 2026/27 Airport Facility Improvements Program (Fuel Farm Replacement - AvGas), Project No. 9I270AMW100 and Contract No. CNTRT-00010650, and authorize the Mayor and City Clerk to execute the agreement on behalf of the City.
- Do not approve the grant agreement.
The Airport Fuel Farm is a critical piece of airport facility infrastructure. The AvGas system is necessary to serve aircraft that rely on aviation gasoline. Replacement of the aging underground system is needed to maintain safety, reliability, and compliance with environmental standards.
Completing the AvGas improvements in coordination with the previously funded Jet Fuel portion will allow the City to design and bid the full fuel farm reconstruction as one project which will allow for the most integrated project delivery method for the airport fueling needs.
The grant agreement provides up to $400,000 in State funding consistent with the grant application and local matching funds previously approved by the City Council. The City must sign and return the agreement to the Iowa DOT within 90 days of receipt. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as described above.