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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/05/2007 - ITEMS RELATING TO THE LOVELAND-FORT COLLINS MUNICI ITEM NUMBER: 15 A-B AGENDA ITEM SUMMARY DATE: June 5, 2007 FORT COLLINS CITY COUNCIL STAFF: Mike Freeman Dave Gordon SUBJECT Items Relating to the Loveland-Fort Collins Municipal Airport. RECOMMENDATION Staff recommends approval of the Ordinance on First Reading and this Resolution. FINANCIAL IMPACT Adoption of this ordinance would appropriate the City's 1/2 share of the grant proceeds from the State of Colorado Division of Aeronautics ($125,000); reimbursement funds from tenants of the Airport Industrial Park($155,000);and Fort Collins-Loveland Airport prior year reserves($16,055), to be used for additional capital and operating expenditures that were not included in the Airport's 2007 Budget. EXECUTIVE SUMMARY A. Resolution 2007-056 Authorizing the Execution of a Grant Agreement with the State of Colorado for Funding of Airport Projects at the Fort Collins-Loveland Municipal Airport. B. First Reading of Ordinance No. 077, 2007, Authorizing the Appropriation of Funds for the Fort Collins-Loveland Municipal Airport for Additional Capital and Operating Expenses. A grant from the State of Colorado in the amount of $250,000 has been offered to the Cities. Approval of the grant is requested at the June 5th meeting in order to meet the State's deadline for encumbering these funds prior to the end of the month, which is its fiscal year end. The funds will be used for half of the Cities' matching funds for the FAA Grant and partial reimbursement for a snow plow blade, equipment storage building, clean up of contaminated soils, and pavement maintenance. Additional appropriations in the amount of$592,110 are needed for Airport improvements. June 5, 2007 -2- Item No. 15 A-B BACKGROUND The Airport's 2007 Budget included the FAA $1 Million Entitlement Grant as well as the 5% matching funds. However, the Airport's Budget did not include the $250,000 State Grant, which was not known at the time of the budget preparation. It is now being offered to the Cities and work associated with the Grant is included in the Supplemental request. The grant contract is on file with the City Clerk's office and is available upon request. The Capital projects to be completed with these funds have been identified as high-priority by the Cities,FAA and State Division of Aeronautics. Notable projects being completed with these funds include: construction of a new taxiway which will open up a new area of the Airport for development; reconstruction of the cross wind runway; drainage improvements to mitigate storm water run off problems; reconstruct failing taxiways in the hangar area; and purchase of a storage facility for Airport snow removal equipment. Also included in the request are funds to hire a new Airport Operations and Maintenance Supervisor. It has been determined that the current Airport staffing structure does not include enough adequately trained personnel to meet the minimum FAA requirements for FAR Part 139 Certificated Airports. In order to meet minimum requirements the new position is being created. The supplemental request of$27,000 will be used for salary and benefits from August 1st to the end of the year. This full time, benefited position will be included in next year's budget. An additional appropriation in the amount of$592,110 is needed to cover the expenditures. The revenue sources are the $250,000 State Grant, reimbursement in the amount of$310,000 from the Industrial Park tenants for 100% of the cross wind runway reconstruction expenses and $32,110 from the Airport's fund balance. ATTACHMENTS 1. 2007 Airport Capital Analysis, April 2007. ATTACHMENT 1 2007 AIRPORT CAPITAL ANALYSIS April 2007 DESCRIPTION TOTAL PROJ# 2007 ORIGINAL 2007 REVISED PROJECT COST BUDGET BUDGET New Staff Salary 27,000.00 Hangar Purchase 32,000 94,500.00 Copier 7,500 7,500.00 AIP21 Airport improvements 1,053,000 1,053,000.00 Signs 8,000 8,000.00 Schedule III Rehab 100,000.00 Schedule III Pavement Rehab 21,800.00 Additional T-Hangar Rehab 42,810.00 Hangar Appraisal 3,000.00 Runway 6/24 Rehab 310,000.00 Snow Plow Blade 25,000.00 500 Gallon Diesel Storage Tank 1,530 ARFF Equipment APARFF 17,760 Airport Improvements-Ramp/Taxiway Alpha Rehab AP0505 1,922,268 Fog Seal Main Runway and Repaint Markings AP0602 181,522 Lighting Control System AP0601 0 9,780 TOTAL 1,100,500.00 3,825,470.00 Original Budget 1,100,500.00 Rollover Budget 2,132,860.00 Additional Appropriation needed 592,110.00 Revenue: State Grant 250,000.00 Industrial Park Tenants 310,000.00 Fund Balance 32,110.00 592,110.00 05/17/2007 2:35 PM RESOLUTION 2007-056 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE EXECUTION OF A GRANT AGREEMENT WITH THE STATE OF COLORADO FOR FUNDING OF AIRPORT PROJECTS AT THE FORT COLLINS-LOVELAND MUNICIPAL AIRPORT WHEREAS, the General Assembly of the State of Colorado has declared in Title 43 of the Colorado Revised Statutes, Article 10, 1991 in C.R.S. 43-10-101 ("the Act") that: "...there exists a need to promote the safe operation and accessibility of general aviation and intrastate commercial aviation in this state;that improvement of general aviation and intrastate commercial aviation transportation facilities will promote diversified economic development across the state; and that accessibility to airport facilities for residents of this state is crucial in the event of a medical or other type of emergency."; and WHEREAS, the Act created the Colorado Aeronautical Board ("the Board") to establish policies and procedures for distribution of monies in the Aviation Fund and created the Division of Aeronautics ("the Division") to carry out the directives of the Board, including technical and planning assistance to airports and the administration of the state aviation system grant program. (See C.R.S. 43-10-103, 105, and 108.5 of the Act); and WHEREAS, any entity operating a public-accessible airport in the state may file an application for and be a recipient of a grant to be used solely for aviation purposes; and WHEREAS, the Division is authorized to assist those airports that request assistance by means of a resolution passed by the applicant's duly-authorized governing body, with the understanding that all funds must be used exclusively for aviation purposes and that the airport will comply with all grant procedures and requirements as defined in the Division's Grant Program Project Management Manual, revised 1999 ("the Manual"); and WHEREAS,the City of Fort Collins and the City of Loveland("the Cities")own and operate in the State the Fort Collins-Loveland Municipal Airport ("the Airport") and have filed an application with the Division and the Board for a state aviation system grant to be used solely for aviation purposes. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT COLLINS, COLORADO, as follows: Section 1. That the Council of the City of Fort Collins ("the City Council'), as one of the duly authorized governing bodies of the grant recipient,hereby formally requests assistance from the Colorado Aeronautical Board and the Division of Aeronautics in the form of a state aviation system grant for the following purposes: funding the City's share of the local match for federally- funded airport improvements; maintaining various airport pavements; completing airport soil contamination mitigation; acquiring snow removal equipment blades; and providing equipment storage. Section 2. That the City of Fort Collins (the"City") states that such grant shall be used solely for aviation purposes, as determined by the State, and as generally described in the Application. Section 3. That the City makes the commitment to keep the Airport facility open and accessible to the public during the entire useful life of the grant funded improvements/equipment or to reimburse the Division for any unexpired useful life of the improvements/equipment on a pro- rata basis. Section 4. That the Cityfurther commits to keep open and accessible for public use all P P grant-funded facilities, improvements and services for their useful life, as determined by the Division and stated in the Grant Agreement. Section 5. That the City Council hereby designates David Gordon,Airport Manager, as the Project Director, as described in the Manual, and authorizes the Project Director to act in all matters relating to the work project proposed in the Application in its behalf, including execution of the grant contract, which is on file with the City Clerk of the City. Section 6. That the City has appropriated or will appropriate or otherwise make available in a timely manner its share of all funds that are required to be provided by the Cities under the terms and conditions of the grant contract. Section 7. That the City hereby accepts all guidelines, procedures, standards, and requirements described in the Manual as applicable to the performance of the grant work and hereby approves the grant contract submitted by the State, including all terms and conditions contained therein. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 5th day of June, A.D. 2007. Mayor ATTEST: City Clerk ORDINANCE NO. 077, 2007 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE APPROPRIATION OF FUNDS FOR THE FORT COLLINS-LOVELAND MUNICIPAL AIRPORT FOR ADDITIONAL CAPITAL AND OPERATING EXPENSES 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 and 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, the Colorado Aeronautical Board and the Division of Aeronautics (the "Division") has awarded the Fort Collins-Loveland Municipal Airport an aviation system grant, in the amount of $250,000, to be used to for aviation purposes, in compliance with grant procedures and requirements as defined in the Division's Grant Program Project Management Manual; and WHEREAS, on June 5, 2007, the City Council adopted Resolution 2007-0 , authorizing the execution of a grant agreement with the State of Colorado for funding of Airport expenditures at the Fort Collins-Loveland Municipal Airport; and WHEREAS, the Airport Manager recommends that the aforementioned unappropriated grant proceeds, totaling $250,000, be appropriated along with $310,000 in reimbursement funds from the Industrial Park tenants for cross wind runway construction expenses, and $32,110 from the Airport's prior year reserves, to be used to construct a new taxiway; reconstruct the cross wind runway; construct drainage improvements to mitigate storm water run-off, reconstruct failing taxiways in the hangar area; purchase a storage facility for snow removal equipment; and hire an Operations and Maintenance Supervisor for the Airport; and WHEREAS, the aforesaid grant requires matching funds; and WHEREAS, the matching funds have already been appropriated and included in the 2007 budget of the Airport; and WHEREAS, under the Intergovernmental Agreement between the Cities, the City of Loveland is providing finance and accounting services for the Airport and 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; 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; and WHEREAS, it is the desire of the City Council to authorize the appropriation of $296,055, representing the City of Fort Collins' 50% share of proceeds from the aviation system grant from the Division ($125,000); reimbursement funds from the Industrial Park tenants ($155,000); and Airport prior year reserves ($16,055), to be used for additional 2007 Airport operating and capital expenditures. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the City Council hereby authorizes the appropriation of TWO HUNDRED NINETY-SIX THOUSAND FIFTY-FIVE DOLLARS ($296,055) to be used for additional 2007 Airport operating and capital expenditures. Introduced, considered favorably on first reading, and ordered published this 5th day of June, A.D. 2007, and to be presented for final passage on the 19th day of June, A.D. 2007. Mayor ATTEST: City Clerk Passed and adopted on final reading this 19th day of June, A.D. 2007. Mayor ATTEST: City Clerk