HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/21/2006 - FIRST READING OF ORDINANCE NO 046, 2006, AUTHORIZI ITEM NUMBER: 11
AGENDA ITEM SUMMARY DATE: March 21, 2006
FORT COLLINS CITY COUNCIL STAFF: Ron Phillips
SUBJECT
First Reading of Ordinance No. 046, 2006, Authorizing the Appropriation of Operating Funds of
the Fort Collins-Loveland Municipal Airport for the Fiscal Year Beginning January 1, 2006, 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 appropriates the City's 50% share($269,185) of the annual appropriation for the
fiscal year 2006 Fort Collins-Loveland Municipal Airport (the "Airport") 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 budget.
EXECUTIVE SUMMARY
The 2006 annual operating budget for the Airport totals$538,370, 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 of Fort Collins contribution which is a 50% share
of the 2006 Airport budget and totals $269,185.
This Ordinance also appropriates the City of Fort Collins 50%share of capital funds for the Airport
from federal and state grants;passenger charges;contributions from Fort Collins and Loveland;and
the Airport General Fund. The capital funds are to be used to construct improvements to the
Airport's ramp area for commercial aircraft, reconstruct taxiway Alpha, replace taxiway Alpha's
lighting system, replace the airfield lighting control system, fog seal the main runway and replace
the markings, and other measures aimed at increasing Airport safety.
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
March 21, 2006 -2- Item No. 11
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 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.
The annual operating costs for 2006 for the Airport are $538,370, and the City of Fort Collins
contribution is $269,185.
In addition,the Airport Manager is recommending additional capital expenditures and has identified
the following funding sources:
FAA Entitlement and Discretionary Grants $ 4,300,000
State Grants 113,160
Passenger Facility Charges 95,000
Contributions - Fort Collins and Loveland 120,000
Airport General Fund 6,150
Total $ 4,634,310
The additional capital expenditures will be for the following improvements:
Taxiway Alpha Rehabilitation $ 2,608,310
Taxiway Alpha Lighting System Replacement 557,000
Commercial Service Ramp Area Reconstruction- Phase 1 1,277,000
Airfield Lighting Control System Replacement 10,000
Main Runway 15/33 Fog Seal and Markings Repainting 182,000
Total $ 4,634,310
Thus, the City of Fort Collins appropriation for the capital expenditures identified above is
$2,317,155 (50% of the total).
ORDINANCE NO. 046, 2006
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, 2006, 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
establish 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 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 2006 Airport Operating Budget
totaling$538,370, of which the City of Fort Collins' 50% share is $269,185; and
WHEREAS, it is the desire of the City Council to appropriate the necessary funds for
operating costs of the Airport, totaling $269,185, for the fiscal year beginning January 1, 2006,
and ending December 31, 2006; and
WHEREAS, the Airport Manager also recommends additional capital expenditures,
totaling $4,634,310 for 2006 that are not included in the 2006 Airport Operating Budget, as
follows:
Taxiway Alpha Rehabilitation $ 2,608,310
Taxiway Alpha Lighting System Replacement 557,000
Commercial Service Ramp Area Reconstruction - Phase I 1,277,000
Airfield Lighting Control System Replacement 10,000
Main Runway 15/33 Fog Seal and Markings Repainting 182,000
Total $ 4,634,310
WHEREAS, funding for the aforementioned Airport appropriations has been identified
as follows:
FAA Entitlement and Discretionary Grants $ 4 300 000
State Grants 113,160
Passenger Facility Charges 95,000
Contributions - Fort Collins and Loveland 120,000
Airport General Fund 6,150
Total $ 4,634,310
WHEREAS, the City of Fort Collins' 50% share of the 2006 Airport capital improvement
costs is $2,317,155; 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 therefor 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 2006 Airport Operating Budget and
authorizes the appropriation of TWO HUNDRED SIXTY-NINE THOUSAND ONE
HUNDRED EIGHTY-FIVE DOLLARS ($269,185) 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 TWO MILLION
THREE HUNDRED SEVENTEEN THOUSAND ONE HUNDRED FIFTY-FIVE DOLLARS
($2,317,155) to be used for capital improvements at the Fort Collins-Loveland Municipal
Airport.
Introduced, considered favorably on first reading, and ordered published this 21st day of
March, A.D. 2006, and to be presented for final passage on the 4th day of April, A.D. 2006.
ATTEST: Mayor
City Clerk
Passed and adopted on final reading on the 4th day of April, A.D. 2006.
Mayor
ATTEST:
City Clerk