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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 01/18/2005 - FIRST READING OF ORDINANCE NO. 005, 2005 AUTHORIZI ITEM NUMBER: 11 AGENDA ITEM SUMMARY DATE: January18, 2005 FORT COLLINS CITY COUNCIL STAFF: Ron Phillips SUBJECT First Reading of Ordinance No.005,2005,Authorizing the Appropriation of Operating Funds of the Fort Collins-Loveland Municipal Airport for the Fiscal Year Beginning January 1, 2005, and Authorizing the Appropriation of Unanticipated Revenue and Prior Year Reserves for Capital Improvements at the Fort Collins-Loveland Municipal Airport. RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT This Ordinance represents the City's 50% share($265,235)of the annual appropriation for the fiscal year 2005 Fort Collins-Loveland Municipal Airport (the "Airport") budget. In addition, the Ordinance appropriates $641,001 from unanticipated grant proceeds and prior year reserves, representing the City's 50% share of appropriations needed for capital improvements at the Airport not included in the 2005 operating budget. The City of Loveland manages the Airport's budget and finances, but since the City of Fort Collins owns 50% of the Airport, it is necessary for the City to appropriate its 50% portion of the Airport appropriations. EXECUTIVE SUMMARY The 2005 operating budget for the Fort Collins-Loveland Municipal Airport totals$530,470,and will be funded from Airport operating revenues, contributions from the Cities of Fort Collins and Loveland, and interest earnings. This Ordinance appropriates the City's 50% share of the 2005 Airport budget, totaling $265,235. In addition,this ordinance appropriates the City's 50%share of capital improvements,not included in the 2005 Airport operating budget, from the following sources: City Share Federal Aviation Authority ("FAA") grant funds $ 575,000 State grant funds from the Colorado Aeronautical Board and the Division of Aeronautics $ 30,881 Fort Collins-Loveland Municipal Airport Prior Year Reserves 35,120 Total $ 641,001 January 18, 2005 -2- Item No. 11 to be used to construct improvements to the Airport's ramp area for commercial aircraft, improve security access control for Airport operations,and other measures aimed at increasing Airport safety. A Resolution authorizing the execution of a grant agreement between the City and the Colorado Aeronautical Board and the Division of Aeronautics will be included at the time of Second Reading of this Ordinance.The grant will be used to provide the local matching funds for the federally funded Airport improvements, to analyze fuel contamination areas at the Airport, and to provide aircraft rescue and firefighting equipment. BACKGROUND In 1963, the City of Fort Collins and the City of Loveland agreed to the establishment of a regional aviation facility and became owners and operators of the Fort Collins-Loveland Municipal Airport, located approximately 16 miles southeast of downtown Fort Collins,just west of Interstate 25 on Earhart Road. The Airport is operated as a joint venture between the City of Fort Collins and the City of Loveland, with each city retaining a 50% ownership interest, sharing equally in policy- making and management,and with each assuming responsibility for 50%of the capital and operating costs associated with the Airport. The Airport's mission is to provide a safe and efficient air transportation airport facility to the general public and aviation community by providing airport facilities that meet Federal Aviation Administration ("FAA") safety standards and to implement a plan that ensures the efficient development of the Airport to meet the needs of the Fort Collins and Loveland communities. Airport revenues cover operating costs and capital projects. Each city contributes equal funding of $60,000 annually, which is included in the Airport budgeted revenues, for airport operating and capital costs. Airport development and improvement funds are also received, for eligible projects, from the FAA and the Colorado Department of Transportation, Division of Aeronautics. ATTACHMENTS 1. Letter from Christopher.Schaffer,Federal Aviation Administration Project Manager,to David C. Gordon, Fort Collins-Loveland Municipal Airport Director, regarding Airport Fiscal Year 2004/2005 Entitlements ATTACHMENT1 DENVER AIRPORTS DISTRICT OFFICE pF TAgN ^ 26805 EAST 68th AVENUE,SUITE 224 DE:NVER.COLORADO 80249.4361 tt z (303)342.1259 �s�AiES� FEDERAL AVIATION ADMINISTRATION January 7, 2005 Mr. David C. Gordon, A.A.B. Airport Director Fort Collins-Loveland Municipal Airport 4900 Earhart Road Loveland, Colorado 80538 Dear Mr. Gordon: Fort Collins-Loveland Municipal Airport,Fort Collins, Colorado Fiscal Year 2004/2005 Entitlements This letter is written in respo�se to your inquiry as to the amount and earliest availability of fiscal year(FY) 2004 and 2005 entitlement funds. Based on preliminary enplanement data indicating 10,280 calendar year(CY)2003 enplanements,the Fort Collins-Loveland Municipal Airport will receive $1,000,000 in FY- 2005 entitlement fiords under the Airport Improvement Program (AIP). In addition, $150,000 of FY-2004 entitlements is also available for a total amount of$1,150,000. As to the earliest probable availability of these funds, no firm date can be given at this time. As you know, the process of distributing appropriations to each federal agency is currently under way. We anticipate, but cannot guarantee, that grant funds will be available by March 1 St. If we may be of any further assistance in this matter, please feel free to contact our office at the number above. Sincerely, Christopher J. Schauer, P.E. Project Manager ORDINANCE NO. 005, 2005 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE APPROPRIATION OF OPERATING FUNDS OF THE FORT COLLINS-LOVELAND MUNICIPAL AIRPORT FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2005, AND AUTHORIZING THE APPROPRIATION OF UNANTICIPATED REVENUE AND PRIOR YEAR RESERVES FOR CAPITAL IMPROVEMENTS AT THE FORT COLLINS-LOVELAND MUNICIPAL AIRPORT WHEREAS, in 1963, the City of Fort Collins and the City of Loveland agreed to the establishment of a regional general aviation facility and became owners and operators of the Fort Collins-Loveland Municipal Airport (the "Airport"); and WHEREAS, the Airport is operated as a joint venture between the City of Fort Collins and the City of Loveland (the "Cities"), with each city retaining a 50% ownership interest, sharing equally in policy-making and management, and with each assuming responsibility for 50% of the capital and operating costs associated with the Airport; and WHEREAS, in accordance with the Intergovernmental Agreement, dated May 16, 2000, between the City of Fort Collins and the City of Loveland for the joint operation of the Fort Collins-Loveland Municipal Airport, the Airport Manager is responsible for preparing the Airport's Annual Operating Budget and submitting said budget to the both Cities for their approval; and WHEREAS, the Airport Manager has submitted a 2005 Airport Operating Budget totaling $530,470, of which the City of Fort Collins 50% share is $265,235; and WHEREAS, it is the desire of the City Council to appropriate the necessary funds for operating costs of the Airport, totaling $265,235, for the fiscal year beginning January 1, 2005, and ending December 31, 2005; and WHEREAS, the Airport Manager also recommends additional capital expenditures, totaling $1,282,003 for 2005 that are not included in the 2005 Airport Operating Budget, as follows: Improvements to the Airport's ramp for commercial aircraft and security access control projects $ 1,240,003 Purchase of FAA required rescue equipment for the Airport's crash/fire/rescue vehicles 22,000 Consulting costs to analyze a soil contamination site at the Airport 20,000 Total $ 1,282,003 WHEREAS, funding for the aforementioned Airport appropriations has been identified as follows: Federal Aviation Authority grant funds $ 1,150,000 Colorado Aeronautical Board and the Division of Aeronautics 61,763 Fort Collins-Loveland Municipal Airport Prior Year Reserves 70,240 Total $ 1,282,003 WHEREAS, the City of Fort Collins' S0% share of the 2005 Airport capital improvement costs is $641,001; and WHEREAS, under the Intergovernmental Agreement between the Cities, the City of Fort Collins' share of existing and unanticipated Airport revenue will be held and disbursed by the City of Loveland, as an agent on behalf of the City of Fort Collins, since the City of Loveland is providing finance and accounting services for the Airport; and WHEREAS, in accordance with Article V, Section 8(b), of the Charter of the City of Fort Collins, any expense or liability entered into by an agent of the City, on behalf of the City, shall not be made unless an appropriation therefore shall have been made by the City Council. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby adopts the 2005 Airport Operating Budget and authorizes the appropriation of TWO HUNDRED SIXTY-FIVE THOUSAND TWO HUNDRED THIRTY-FIVE DOLLARS ($265,235) to be expended for the authorized purposes of the Fort Collins-Loveland Municipal Airport. Section 2. That the City Council hereby authorizes the appropriation of SIX HUNDRED FORTY-ONE THOUSAND ONE DOLLAR ($641,001) to be used for capital improvements at the Fort Collins-Loveland Municipal Airport. Introduced, considered favorably on first reading, this 18th day of January, A.D. 2005, and to be presented for final passage on the 1st day of February, A.D. 2005. Mayor ATTEST: City Clerk Passed and adopted on final reading this 1st day of February, A.D. 2005. Mayor ATTEST: City Clerk