AGENDA CAPTION:
Title
Consider approval of Resolution 2026-05R, authorizing a request for reimbursement from the Texas Department of Transportation for up to $2,524,112.00 for an Above Ground Fuel Storage System Project for the San Marcos Regional Airport in the estimated amount of $3,000,000.00; authorizing the City Manager, or her designee, to execute all contracts and agreements necessary to obtain such reimbursement and to execute a designation of sponsor’s authorized representative on behalf of the city; and declaring an effective date.
Body
Meeting date: January 20, 2026
Department: Engineering and CIP
Amount & Source of Funding
Funds Required: N/A
Account Number: C26
Funds Available: Yes
Account Name: Airport Infrastructure Grant Funded
Fiscal Note:
Prior Council Action: None
City Council Strategic Initiative: [Please select from the dropdown menu below]
Economic Vitality
Public Safety, Core Services & Fiscal Excellence
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☒ Economic Development - Promote & Support Potential of San Marcos Regional Airport
☐ Environment & Resource Protection - Choose an item.
☐ Land Use - Choose an item.
☐ Neighborhoods & Housing - Choose an item.
☐ Parks, Public Spaces & Facilities - Choose an item.
☐ Transportation - Choose an item.
☒ Core Services
☐ Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
Airport Master Plan
Background Information:
The need to replace the airport’s existing Above Ground Fuel Storage Facility was identified in the 2020 and 2025 airport master plans. The city made a request to Texas Department of Transportation (TxDOT) Aviation for funding to support a project to design and construct a new above ground Fuel Storage Facility. This was subsequently added to TxDOT Aviation’s Capital Improvement Program with funding for fiscal years 2026 and 2027.
This ultimate goal of the project is to:
• Close the existing fuel facility due to aging condition and inadequate capacity.
• Design and construct a new fuel facility at a more efficient location within airport grounds.
• Operate a new fuel facility that has capacity for the projected growth of airport usage.
• Include a new service road to the new fuel facility to improve connectivity within airport.
The scope of this request covers the design, environmental, and construction phases of the new Above Ground Fuel Storage Facility.
The city is now seeking financial support from TxDOT Aviation to use federal funds to support the cost of the design, environmental, and construction phases of the Above Ground Fuel Storage Facility project. TxDOT Aviation requires a resolution from the local sponsor requesting financial assistance, which will be through reimbursement. Additionally, the City Manager must document, through designation, the City’s project manager.
The estimated cost of the project will not exceed $3,000,000 for design and construction, unless subsequently authorized. The City will be responsible for 5% of the design costs and approximately 10% of the construction cost which will be reimbursed up to the amount authorized by the total TXDOT grant in the amount of +$2.5M. Any cost above the TXDOT grant will be 100% covered by the City.
Construction is anticipated to occur in 2027-208 in the amount of $2.5M-$2.8M.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Staff recommends approval