HomeMy WebLinkAboutA017 - April 28, 2026, Regular Meeting of the Ames City CouncilITEM #:21
DATE:04-28-26
DEPT:PW
SUBJECT:2026/27 AIRPORT FACILITY IMPROVEMENTS (FUEL FARM
REPLACEMENT - AVGAS)
COUNCIL ACTION FORM
BACKGROUND:
The City of Ames 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.
To support this project, the Iowa Department of Transportation (DOT) State Airport
Improvement Program (AIP) application for the AvGas portion of the Airport Fuel Farm
reconstruction project requested $400,000 in State funding toward a total project cost of
$533,333. Because State funding is limited, Iowa DOT staff administering the program to
determine State participation levels on a project-by-project basis at the time funding is
requested. For this project, a 75% State and 25% local cost share has been identified,
resulting in a required local match of $133,333.
The AvGas and Jet Fuel portions were programmed across two fiscal years to maximize
available grant funding. However, staff intends to design and bid both portions together as a
single project because that is the most cost-effective approach and will allow the full fuel farm
to be constructed under one contract. The previously approved Council Action Form for Jet
Fuel portion of the project is included for reference.
The 2026/27 CIP programs this project with $400,000 in State funding, $25,000 from the
Airport Improvements Fund, and $100,000 in G.O. Bonds. Because the current grant
application and updated cost estimate reflect a total project cost of $533,333, the
originally programmed funding budget is insufficient to meet the required local match.
Therefore, this Council action includes an additional $8,333 from the the Airport
Improvements Fund (for a total of $33,333) to maximize the utilization of available grant
funds and fully fund the required local match.
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Revenues
State Airport Improvement
Program Grant (75%)$400,000
G.O. Bonds (Previously Issued)$100,000
Airport Improvements Fund
(CIP Programmed)$25,000
Airport Improvements Fund
(Additional for Grant Match)$8,333
Total Revenues $533,333
Expenses
Project Cost – Fuel Farm
Replacement (AvGas Portion)$533,333
Total Expenses $533,333
ALTERNATIVES:
1. Approve proceeding with the FY 2026/27 Airport Facility Improvements Program (Fuel
Farm Replacement – AvGas project) by:
a. Approving submission of the State of Iowa Airport Improvement Program grant
application
b. Committing $133,333 in local matching funds for the project, including the
$100,000 in previously issued G.O. Bonds and $33,333 from the Airport
Improvements Fund, to fully fund the project and maximize available grant funding.
2. Do not approve the grant application. This would forfeit the opportunity to receive State
funding and require the City to fully fund the AvGas portion locally.
CITY MANAGER'S RECOMMENDED ACTION:
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, and replacement of
the aging underground system is needed to maintain safety, reliability, and compliance
with environmental standards. Completing the AvGas portion 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 is the most cost-effective approach. Therefore, it is
the recommendation of the City Manager that the City Council adopt Alternative No. 1, as
described above.
ATTACHMENT(S):
Jet Fuel CAF.pdf
Iowa DOT Grant Application
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ITEM #:21
DATE:08-26-25
DEPT:PW
SUBJECT:2025/26 AIRPORT FACILITY IMPROVEMENTS (FUEL FARM
REPLACEMENT - JET FUEL TANK)
COUNCIL ACTION FORM
BACKGROUND:
The City of Ames Capital Improvements Plan includes replacement of the Jet A fuel tank at
the Ames Municipal Airport in the FY 2025/26 Airport Facility Improvements Program. This
program addresses the modernization of fueling facilities for safety, storage, and
environmental protection. It replaces the existing 10,000 gallon underground storage
tank with a modern 14,000 gallon above ground storage tank.
On August 12, 2025, the Iowa Transportation Commission approved the City’s application for
State Airport Improvement Program (AIP) funding. Following that approval, the Iowa DOT
notified City staff that available funding for this project is limited to $400,000, which is
slightly less than the $412,500 originally identified in the adopted Capital Improvements
Plan (CIP). The State of Iowa has awarded a grant covering 55% of eligible costs, not to
exceed $400,000, for the Jet Fuel Farm Replacement – Jet A project.
Staff is recommending backfilling the $1 2 ,5 0 0 difference in grant funding from the
Airport Improvement Fund, which is projected to have a balance of $324,940 at the end
of FY 2025/26.
Revenues
State Airport Improvement
Program Grant (55% eligible
costs; max)
$400,000
General Obligation Bonds $312,500
Airport Improvement Funds $12,500
Total Revenues $725,000
Expenses
Project Cost – Jet Fuel Farm
Replacement (Jet A Tank)$725,000
Total Expenses $725,000
ALTERNATIVES:
1. Approve proceeding with the FY 2025/26 Airport Facility Improvements Program (Jet
Fuel Farm Replacement – Jet A project) by:
a. Approving the State of Iowa Airport Improvement Program Grant Agreement
b. Allocating $12,500 from the Airport Improvement Fund for the project
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2. Do not approve the grant agreement. This would forfeit the awarded state funds,
requiring the City to fully fund the project locally.
CITY MANAGER'S RECOMMENDED ACTION:
The Jet Fuel Farm is a critical piece of airport facility infrastructure. Without a
functioning Jet A fuel system, the Fixed Base Operator cannot provide essential fueling
services, and the Airport’s ability to serve based aircraft, itinerant users, and
emergency operations would be severely compromised. Replacing the aging Jet A tank
is necessary to maintain safety, reliability, and compliance with environmental
standards. Therefore, it is the recommendation of the City Manager to approve Alternative
No. 1 as shown above.
ATTACHMENT(S):
FY2026 AIP Agreement AMW.pdf
FY2026 State AIP Letter AMW.pdf
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No.ITEM QTY UNIT UNIT PRICE TOTAL Federal 90%State %Local %Federal Amount State Amount Local Amount
1 MOBILIZATION 1 LS 30,000.00$ 30,000.00$ 0.00% 75.00% 10.00%-$ 22,500.00$ 7,500.00$
2 FUEL FARM REMOVAL (AVGAS TANK/CABINET)1 LS 20,000.00$ 20,000.00$ 0.00% 75.00% 10.00%-$ 15,000.00$ 5,000.00$
3 12,000 GALLON FLAMSHIELD AVGAS TANK 1 EA 130,000.00$ 130,000.00$ 0.00% 75.00% 10.00%-$ 97,500.00$ 32,500.00$
4 PCC TANK AND EQUIPMENT PAD, 12" THICK 150 SY 100.00$ 15,000.00$ 0.00% 75.00% 10.00%-$ 11,250.00$ 3,750.00$
5 AVGAS SYSTEM, COMPLETE, IN PLACE 1 LS 150,000.00$ 150,000.00$ 0.00% 75.00% 10.00%-$ 112,500.00$ 37,500.00$
6 FUEL RECOVERY SYSTEM - AVGAS 1 LS 10,000.00$ 10,000.00$ 0.00% 75.00% 10.00%-$ 7,500.00$ 2,500.00$
7 REMOTE FILL CABINET 1 EA 15,000.00$ 15,000.00$ 0.00% 75.00% 10.00%-$ 11,250.00$ 3,750.00$
8 SYSTEM TESTING AND STARTUP 1 LS 15,000.00$ 15,000.00$ 0.00% 75.00% 10.00%-$ 11,250.00$ 3,750.00$
9 FUELING ELECTRICAL 1 LS 25,000.00$ 25,000.00$ 0.00% 75.00% 10.00%-$ 18,750.00$ 6,250.00$
10 MISCELLANEOUS CONSTRUCTION 1 LS 23,333.00$ 23,333.00$ 0.00% 75.00% 10.00%-$ 17,499.75$ 5,833.25$
Subtotal 433,333.00$ 0.00% 75.00% 25.00% -$ 324,999.75$ 108,333.25$
DESIGN ENGINEERING 47,500.00$ 0.00% 75.00% 10.00%-$ 35,625.00$ 4,750.00$
CONSTRUCTION ENGINEERING 52,500.00$ 0.00% 75.00% 10.00%-$ 39,375.00$ 5,250.00$
533,333.00$ 0.00% 75.00% 25.00% -$ 400,000.00$ 133,333.00$
FUEL FARM IMPROVEMENTS - AV GAS
FUEL FARM IMPROVEMENTS - AV GAS
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Fuel Farm Improvements - AvGas
Ames Municipal Airport
Iowa DOT State Grant Application Exhibit
April 2026
FEETSCALE
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HORZ.
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PROPOSED 14,000 GALLO
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J
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A
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PROPOSED 12,000 GALLON
AV GAS TANK
EXISTING UNDERGROUND
JET A AND AV GAS TANKS
FUNDING SECURED
UNDER IDOT FY 26
GRANT
FUNDING ASSISTANCE
PROPOSED UNDER
IDOT FY 27 GRANT
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RESOLUTION AUTHORIZING SUBMISSION OF APPLICATION FOR IOWA DEPARTMENT OF TRANSPORTATION
AIRPORT FUNDING AND CERTIFYING ELIGIBILITY REQUIREMENTS
WHEREAS, the City of Ames intends to apply for a grant from the Iowa Department of Transportation for
partially funding improvements at the Ames Municipal Airport further described below:
• Fuel Farm – AvGas
WHEREAS, the City of Ames has/will budget $133,333.00 for the Fuel Farm – Av Gas improvement project as
matching funds in connection with the application of the grant from the Iowa DOT; and
WHEREAS, if the Fuel Farm – Av Gas improvement project is selected by the Iowa Department of Transportation
for funding, a grant would pay 75% of the project cost and the remaining 25% shall be paid from local funds; and
WHEREAS, the Iowa Department of Transportation requires a resolution endorsing the above-mentioned
improvements and certifying availability of matching local funds.
WHEREAS, a grant application has been prepared on behalf of the City of Ames by Bolton & Menk Inc. for the
above-mentioned improvements.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF AMES, IOWA:
1. Staff are hereby authorized to execute grant application documents as needed to apply for the grant from
the Iowa DOT for the above-mentioned improvements.
2. Staff are hereby authorized to submit a grant application to the Iowa DOT for the above-mentioned
improvements.
3. $133,333.00 is hereby committed for the Fuel Farm – Av Gas improvement project as the local matching
share, subject to receipt of a grant from the Iowa Department of Transportation.
Passed this 27th day of April 2026 and signed this 27th day of April 2026.
City of Ames, Iowa
By:_________________________________
John Haila, Mayor
Attest: ______________________________
Renee Hall, City Clerk
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