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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/16/2003 - ITEMS RELATING TO THE FORT COLLINS-LOVELAND MUNICI ITEM NUMBER 17 A-B AGENDA ITEM SUMMARY DATE December 16, 200$ FORT COLLINS CITY COUNCIL STAFF Dave Gordon SUBJECT Items Relating to the Fort Collins-Loveland Municipal Airport RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading and the Resolution EXECUTIVE SUMMARY A Second Reading of Ordinance No 168 2003 Enacting a New Article VII of Chapter 7 5 of the City Code Establishing a Passenger Facility Charge at the Fort Collins/Loveland Municipal Airport Allegiant Air started regular scheduled airline passenger service on July 31 2003 which qualifies the airport to submit a new Application for the collection of PFCs Since the last PFC Application, the FAA has increased the maximum amount for PFCs from $3 00 to $4 50 per enplaned passenger This Ordinance which was adopted on First Reading on December 2, 2003, enacts a new article of the City Code establishing a PFC for$4 50 per enplaned passenger flying from the Fort Collins/Loveland Airport B Resolution 2003 143 Identifying Projects to be Funded by Passenger Facility Charges Collected at the Fort Collins Loveland Municipal Airport The PFC Application requires specific identification of projects that the PFC funds will be used for Section 7 5-93 of the new Code provision set forth in Item "A above, provides for project designation by resolution of both Fort Collins and Loveland City Councils The Resolution identifies the three projects as rehabilitation of the south general aviation ramp area design of the future snow removal equipment building and the Master Plan Study The south general aviation ramp rehabilitation project was completed last year and involved reconstructing a 400 X 386 foot section of aircraft ramp area The design of the snow removal building is 95% complete and will be finished within 60 days (The Funding for the construction of the snow removal equipment building is not yet programmed by the FAA ) Both of these projects were 90% funded with FAA money The Master Plan Study will begin early next year the FAA Grant for 90% of the Study cost has already been approved by both Councils In addition the Colorado Aeronautics Board has approved funds for half of the City s costs or 5% of the Study's total costs The State Grant Agreement for these funds was recently received and will be submitted to the City Council for approval in January The PFC funds generated from this Application will be in the amount of$100,658 and will be used to reimburse the airport's share of funds for the two completed projects and for the airport s share of funds that will be spent for the Master Plan study The Master Plan Study will begin early next year and will develop a new 20-year Capital Improvement Plan CIP for future PFC Applications RESOLUTION 2003 OF THE COUNCIL OF THE CITY OF FORT COLLINS IDENTIFYING PROJECTS TO BE FUNDED BY PASSENGER FACILITY CHARGES COLLECTED AT THE FORT COLLINS LOVELAND MUNICIPAL AIRPORT WHEREAS Section 7 5-93 of the City Code provides for the designation of projects eligible for receipt and expenditure of Passenger Facility Charges, which designation shall be by resolution of the councils of the Cities of Fort Collins and Loveland, and WHEREAS, the Council of the City of Fort Collins has determined that it is in the best interest of the City that the projects identified in this Resolution be pursued utilizing funds collected at the Fort Collins-Loveland Municipal Airport as Passenger Facility Charges NOW THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the following projects are hereby designated by the Council as being eligible for the receipt and expenditure of funds generated by Passenger Facility Charges, subject to the appropriation of such funds as may actually be received by the City from such charges 1 Rehabilitation of the south general aviation ramp area 2 Design of the snow removal equipment building 3 Airport Master Plan study Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this 16th day of December A D 2003 Mayor ATTEST City Clerk Fort Collins-Loveland Municipal Airport Proposed Passenger Facility Charge Application #3 Project Descriptions I South Ramp Rehabilitation- This PFC project consists of rehabilitating a 400 foot X 386 foot area of deteriorated pavement on the south end of the general aviation ramp area Work included surveying soils analysis, design services construction engineering services removal of asphalt regrade the area placement of new asphalt 2 to 6" thick and associated painting The total cost of this project is $530 285 The Federal Aviation Administration provided a federal grant (AIP #3-08-0023-16) for this project of $477 256 The State of Colorado provided a grant of $26 455 The local match of $26,574 is anticipated to be paid for with PFC funds This project started in June 2001 and was completed in August, 2003 II SRE Building Design This PFC project consists of the design of a SIZE building (approximately 4 000 square feet) consisting of vehicle bays for four (4) vehicles This building will be current with FAR Part 139 standards The building will be located adjacent to the airport's existing fire station #4 The total cost of this design project is estimated to be $55 082 The Federal Aviation Administration has provided a federal grant (AIP #3-08-0023-17) for this project of $49 574 The State of Colorado provided a grant of $2 754 The local match of $2,754 is anticipated to be paid for with PFC funds This project started in August 2003 and be complete no later than January 2004 III Master Plan - This PFC project consists of preparation of a comprehensive Airport Master Plan including Airport Layout Plan drawings, Building Area drawings and a written report This study will be conducted in accordance with FAA s Advisory Circular related to Master Plans Development resulting from this study will enhance safety and capacity at the airport This project also includes PFC eligible formation costs necessary to develop and implement capital plans and related financial plans and preparation of this PFC application The total cost of this project is $521 450 The Federal Aviation Administration provided a federal grant (AIP #3-08-0023 18) for the Master Plan totaling $450 000 The State of Colorado provided a grant for $50 000 The local match of the master plan and PFC administration costs of$71 450 are anticipated to be paid for with PFC funds This project will start in January 2004 and will be complete in January 2005 ORDINANCE NO 168 2003 OF THE COUNCIL OF THE CITY OF FORT COLLINS ENACTING A NEW ARTICLE VII OF CHAPTER 7 5 OF THE CITY CODE ESTABLISHING A PASSENGER FACILITY CHARGE AT THE FORT COLLINS-LOVELAND MUNICIPAL AIRPORT WHEREAS the City of Fort Collins and the City of Loveland (the "Cities") have investigated the feasibility of implementing and collecting a Passenger Facility Charge ('PFC') on eligible enplaned passengers at the Fort Collins-Loveland Municipal Airport (the "Airport") in accordance with the Aviation Safety and Capacity Expansion Act of 1990 as approved by the Federal Aviation Administration("FAA")and to expend such funds on FAA approved eligible projects and WHEREAS the Cities operate maintain and develop the Airport with federal grants and user fees, and WHEREAS a PFC is not to be considered a tax but is a user fee authorized by federal law and imposed only on eligible enplaned passengers utilizing the Airport, and WHEREAS the Cities have determined that the funds generated by adopting and collecting a PFC are needed to accomplish projects designed to enhance capacity safety and development of the Airport NOW THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows Section 1 That Chapter 7 5 of the City Code is hereby amended by adding thereto a new Article VII to read as follows ARTICLE VII PASSENGER FACILITY CHARGE Sec 7 5-90 Definitions When used in this Article the following words and terms shall have the following meanings Airport shall mean the area of the Fort Collins-Loveland Municipal Airport Charge Effective Date shall mean the date on which the Passenger Facility Charge is effective as provided in § 7 5-92 of this Article Enplaned Passenger shall mean a domestic territorial or international revenue passenger enplaned at the Airport in a scheduled or nonscheduled aircraft in interstate intrastate or foreign commerce provided that Enplaned Passenger shall not include a passenger enplaning to a destination receiving essential air service compensation as provided by 14 C F R 158 9 or a passenger both enplaning and deplaning at the Airport 1 Manager shall mean the Airport Manager for the Airport FAA shall mean the Federal Aviation Administration Department of Transportation United States of America Passenger Facility Charge shall mean the charge imposed on Enplaned Passengers pursuant to section 7 5-92 of this Article Fort Collins or city shall mean the City of Fort Collins a home rule municipal corporation created pursuant to Colorado state law Sec 7 5 91 Findings and purpose The City Council hereby makes the following findings (1) The city together with the City of Loveland owns and controls that certain Airport and air navigation facility located in Latimer County, State of Colorado and known as the Fort Collins-Loveland Municipal Airport(the Airport') (2) The Airport promotes a strong economic base for the community assists and encourages world trade opportunities and is of vital importance to the health safety and welfare of the State of Colorado (3) The Airport is a commercial service airport as that phase is defined in 14 C F R Part 158 as adopted by the FAA, being a public airport enplaning two thousand five hundred (2 500) or more scheduled air passengers per year (4) The deregulation of the airline industry, the restructuring of airline ownerships and fluctuating market changes in the field of commercial aviation have placed new financial challenges on the city (5) The operation of the Airport as a public facility attracting scheduled airline passenger service by airline carvers at the Airport imposes financial responsibility on the city for Airport facilities and operations (6) The city will require substantial expenditure for capital investment operation maintenance and development of the Airport facilities to meet the future demand for passenger air travel (7) The Congress of the United States has authorized the adoption of a Passenger Facility Charge program by local airports pursuant to the Aviation Safety and Capacity Expansion Act of 1990 (pub L 101-508 Title IX Subtitle B November 5 1990) (hereinafter the Act ) 2 (8) It is in the city's best economic interest and in the interest of airline passengers that the city adopt a Passenger Facility Charge program as identified in this Article to maintain and further expand the transportation facilities of the city (9) In establishing and implementing the Passenger Facility Charge program the passengers using the Airport should contribute to a greater degree toward the development of Airport facilities used by passengers and continued development thereof (10) The fees implemented by this Article are reasonable for the use of the Airport and aviation facilities by the general public (11) The purpose of this Article is to enact a Passenger Facility Charge program consistent with the above findings and this Article shall be liberally construed to effectuate the purpose expressed herein Sec 7 5-92 Imposition of Passenger Facility Charge (a) Commencing not later than the first day of the second month thirty (30) days after the approval by the FAA of the City s Passenger Facility Charge program authorized by this Article or on such date thereafter as the Passenger Facility Charge can be collected as determined by the Manager there shall be imposed at the Airport a Passenger Facility Charge of four dollars and fifty cents ($4 50) (b) The collection of the Passenger Facility Charge authorized by this Article shall terminate on the date determined pursuant to regulations adopted by the FAA (b) The Manager or designee is authonzed to execute the FAA application for authorization of the city s Passenger Facility Charge program including the assurances contained therein as well as all other documents necessary for implementation and operation of the Passenger Facility Charge program on behalf of the city Sec 7 5 93 Eligible projects The Passenger Facility Charge collected pursuant to this program shall be expended only for projects approved by resolution of both the City Councils of Fort Collins and Loveland and determined by the FAA to be eligible under the Act and rules and regulations adopted by the FAA pursuant thereto Sec 7 5-94 Compliance with FAA requirements The Passenger Facility Charge authorized by this Article shall be collected and distributed pursuant to the rules and regulations adopted by the FAA pursuant to the Act 3 Sec 7 5 95 Violations In the event any airline or other entity violates any term or condition of this Article the city may exercise any rights or remedies allowed by law or equity Sec 7 5 96 Savings clause In the event any phrase clause sentence paragraph or section of this Article is declared invalid for any reason the remainder of this Article shall not be invalidated but shall remain in full force and effect all parts of this Article being declared separable and independent of all others In the event that a judgment is entered and all appeals exhausted which judgment fords concludes or declares this Article is unconstitutional or is otherwise invalid the Passenger Facility Charge authorized by this Article shall be suspended and terminated as of the date of declaration of unconstitutionality Section 2 The provisions of this Ordinance shall supercede and replace Ordinance No 16 1993 which originally established the PFC program Introduced and considered favorably on first reading and ordered published this 2nd day of December A D 2003, and to be presented for final passage on the 16th day of December, A D 2003 !s� Mayor ATTEST Chief Deputy City Clerk Passed and adopted on final reading this 16th day of December A D 2003 Mayor ATTEST City Clerk 4 ITEM NUMBER 16 AGENDA ITEM SUMMARY DATE December2, 2003 FORT COLLINS CITY COUNCIL STAFF Dave Gordon SUBJECT First Reading of Ordinance No 168 2003 Enacting a New Article VH of Chapter 7 5 of the City Code Establishing a Passenger Facility Charge at the Fort Collins/Loveland Municipal Airport A V� P RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading FINANCIAL IMPACT The Passenger Facility Charge ("PFC ) will generate an estimated $100 658 of revenues per year from ticketed airline passengers fl in� from the airport EXECUTIVE SUMMARY The Aviation Safety and Capacity Expansion Act of 1990 provided a new source of funchng (Passenger Facility Charges-PFC) for authorized airports to fund needed airport expansion projects that might otherwise go unfunded In 1993 and 1995 the Fort Collins/Loveland Airport received approval from the FAA to collect PFCs since the airport was receiving scheduled passenger airline service In these prior years the FAA allowed a maximum PFC collection of$3 00 per enplaned passenger which is the amount the Cities were approved to collect Once the airport lost scheduled airline passenger service in 1997 the Airport's PFC collections were cancelled Allegeant Air started regular eduled#irline s servi on July 31 2003 which qualifies the airport to submit anew Ap catio r the 1 ion of PFs Since our last PFC Application the FAA has increased the maxim amount for P s from$3(jj0 to$4 50 per enplaned passenger The approval of this Ordinance will enact a new article of the City Code establishing a PFC for $4 50 per enplaned passenger flying from the Fort Collins/Loveland Airport The PFC funds that will be collected from this Application total an estimated $100 658 and must be used for the three projects listed in the PFC Application City Council s designation of these projects as required by Section 7 5-93 of this Code provision will be accomplished via a resolution presented to City Council at the time of second reading of this Ordinance FAA regulations are very specific on the kind of projects eligible for PFC revenues, examples of projects that are not eligible include parking facilities, rental car facilities restaurants concessions or any other exclusive use facility The three projects submitted with this Application are eligible The three projects include rehabilitation of the south general aviation ramp area design of the future snow removal equipment December 2, 2003 -2- Item No 16 building and the Master Plan Study The south general aviation ramp rehabilitation project and the design of the future snow removal equipment building have been completed The south ramp area work was completed last year and involved reconstructing a 400 X 400 foot section of aircraft ramp area The design of the snow removal building is 95%complete and will be finished within 60 days Funding for the construction of the building is not yet programmed by the FAA Both of these projects were 90% funded with FAA funds The Master Plan Study will begin early next year, the FAA Grant for 90% of the Study costs has already been accepted by both Cities The PFC funds generated from this Application will be used to reimburse the Airport s share of funds for the two completed projects and for the Airport s share of funds that will be spent for the Master Plan study The Master Plan Study will Pegirivear)y next yeprnand-will elop a new 20-year Capital Improvement Plan for future)AFC Appl} ations� The Application approval process takes approxiifnatily 10 months to complete Once approved the airlines will collect the $4 50 for each enplaned passenger flying from the airport and then return the collected revenues to the airport on a monthly basis less a very small handling fee established by federal regulation It will take approximately twelve months to collect the $100 658, based on estimated enplaned passengers Prior to these revenues being fully collected the airport will seek approval from the City to submit a new PFC Application (along with new eligible projects) to the FAA to prevent a lapse of PFC collections r3 i f 3 t 1 '4 t� e �a