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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/04/2006 - SECOND READING OF ORDINANCE NO. 046, 2006, AUTHORI ITEM NUMBER: 8 AGENDA ITEM SUMMARY DATE: April 4, 2006 FORT COLLINS CITY COUNCIL STAFF: Ron Phillips SUBJECT Second 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 Second Reading. EXECUTIVE SUMMARY This Ordinance,which was unanimously adopted on First Reading on March 21,2006,appropriates the City of Fort Collins contribution of the 2006 Airport budget, which is a 50% share and totals $269,185. It 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. ITEM NUMBER: 11 AGENDA ITEM SUMMARY DATE: March 21, 2006 FORT COLLINS CITY COUNCIL STAFF: Ron Phillips SUBJECT C)"D 3L 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. RECOMM ENDATION Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT This Ordinance appropriates tCovelan % s e 2 ,Ysine e annual appropriation for the fiscal year 2006 Fort Collins uni a irpAirport") budget. The City of Loveland manages the Airport ,but 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 i al az e t onstruct improvements to the Airport's ramp area for comm ial a r ft, r n ru t a Alpha, replace taxiway Alpha's lighting system, replace the ai eld ligh g co o em, seal the main runway and replace the markings, and other meas d in as' Airport fety. 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 . o The Airport's mission is to p vide a e an P'f air sportation airport facility to the general public and aviation co y b dort_ lities 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 Discreti ary G s $ 4,300,000 State Grants P Y113,160 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 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 Thus, the City of Fort Collins p c ' enditures identified above is $2,317,155 (50% of the total). s f 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 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 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. Mayo , ATTEST: City Clerk Passed and adopted on final reading on the 4th day of April, A.D. 2006. Mayor ATTEST: City Clerk