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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 05/01/2007 - SECOND READING OF ORDINANCE NO. 053, 2007, AUTHORI ITEM NUMBER: 7 AGENDA ITEM SUMMARY DATE: May 1, 2007 FORT COLLINS CITY COUNCIL STAFF: Mike Freeman SUBJECT Second Reading of Ordinance No. 053, 2007, Authorizing the Appropriation of 2007 Fiscal Year Operating and Capital Improvement Funds of the Fort Collins-Loveland Municipal Airport and Authorizing the Reappropriation of Unspent and Unencumbered Funds from 2006. RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on April 17, 2007, appropriates the City's 50% share ($840,335) of the annual appropriation for the fiscal year 2007 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. In addition, this Ordinance authorizes the reappropriation of the City's 50% share of unspent and unencumbered funds at the end of 2006, totaling $1,089,000, to be used for various Airport improvements. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary -April 17, 2007. ATTACHMENT 1 ITEM NUMBER: 13 AGENDA ITEM SUMMARY DATE: April 17, 2007 FORT COLLINS CITY COUNCIL FF: Mike Freeman 1111txl�I � w SUBJECT First Reading of Ordinance No. 053, 2007, Authorizing the Appropriation of 2007 Fiscal Year Operating and Capital Improvement Funds of the Fort Collins-Loveland Municipal Airport and Authorizing the Reappropriation of Unspent and Unencumbered Funds from 2006. RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT This Ordinance appropriates th it ' "Ose 840,335 f the annual appropriation for the fiscal year 2007 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. In addition, this Ordinance authorizes the reappropriation of the City's 50% share of unspent and unencumbered funds at the end of 2006, totaling $1,089,000, to be used for various Airport Improvements. EXECUTIVE SUMMARY The 2007 annual operating budget for the Airport totals$580,170, and will be funded from Airport operating revenues,contributions from the Cities of Fort Collins and Loveland,and interest earnings. This Ordinance appropriates thr ort ollins'contribution which is a 50%share of the 2007 Airport budget and totals $290 This Ordinance also appropriof rt olliny5Xohare of capital funds, totaling $550,250, for the Airport from federal and state grants;passenger charges; contributions from Fort Collins and Loveland; and the Airport General Fund. The 2007 Airport capital funds, totaling $1,100,500, will be used to construct improvements taxiway improvements, purchase a storage building for Airport equipment, rebuilding directional/informational signs along the Airport's entrance road, and minor equipment purchases. In addition,this Ordinance reappropriates the City's 50%share of unspent and unencumbered funds, April 17, 2007 -2- Item No. 13 totaling$1,089,000,for various Airport Improvements,not completed as of the end of the year 2006. The reappropriated funds, totaling$2,178,000, will be used for ramp/taxiway Alpha rehabilitation ($1,924,770), runway fog seal and markings repainting ($181,520), FAA Master Plan Update ($33,100),Airport firefightinge nt 60 Yng improvements($20,850). The reappropriated amounts will b de ` m fe a o $1,942,530, and Fort Collins- Loveland Airport prior year re es, tp ing$ 5 70. Pv� 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%ofthe 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 co d' ac. . .es that meet Federal Aviation Administration ("FAA") safe(eet tan s an o plan that ensures the efficient development of the Airport to the eds o h ort Coll s 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 2007 for the Airport are $580,170, and the City of Fort Collins contribution is $290,085. In addition,the Airport Manager is recommending additional capital expenditures and has identified the following funding sources: FAA Entitlement and Discretionary Grants $ 1,000,000 State Grants 25,000 Contributions - Fort Collins v 75,500 T $ 1,100,500 The additional capital expenditures will be for the following improvements: Taxiway Improvements $ 1,053,000 Storage Building for Airport Equipment 32,000 Directional/Informational Signage 8,000 Minor Equipment Purchases 7,500 Total $ 1,100,500 April 17, 2007 -3- Item No. 13 Thus, the City of Fort Collins' appropriation for the capital expenditures identified above is $550,250 (50% of the total). The Airport Manager also recEdd r ripvyentollows: unencumbered funds,totaling $2,178,000, from 2006 to be ` ort Ramp/Taxiway Alpha Rehabi $ 1,924,770 Runway Fog Seal and Markings Repainting 181,520 FAA Master Plan Update 33,100 Airport Fire Fighting Equipment 17,760 Airfield Lighting Control System 9,780 Electrical Repairs to Gates 7,660 Building Surveys 1,880 Diesel Storage 1,530 Total $ 2,178,000 The aforementioned improvements will be funded from the following: Federal Airport Funds $ 1,942,530 Fort Collins-Loveland Airport Prior Year Reserves 235,470 1 fie bov $ 2,178,000 The City's share (50%) of theCrn 'on ' 'dentie is $1,089,000. ORDINANCE NO. 053, 2007 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE APPROPRIATION OF 2007 FISCAL YEAR OPERATING AND CAPITAL IMPROVEMENT FUNDS OF THE FORT COLLINS-LOVELAND MUNICIPAL AIRPORT AND AUTHORIZING THE REAPPROPRIATION OF UNSPENT AND UNENCUMBERED FUNDS FROM 2006 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 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 it to the Cities for their approval, and WHEREAS, the Airport Manager has submitted a 2007 Airport Operating Budget totaling$580,170 and the City of Fort Collins' 50% share is $290,085; and WHEREAS, it is the desire of the City Council to appropriate the necessary funds for operating costs of the Airport, totaling $290,085, for the fiscal year beginning January 1, 2007, and ending December 31, 2007; and WHEREAS, the Airport Manager also recommends additional capital improvements, totaling $1,100,500 for 2007 that are not included in the 2007 Airport Operating Budget, as follows: Taxiway Improvements $ 1,053,000 Storage Building for Airport Equipment 32,000 Directional/Informational Signage 8,000 Minor Equipment Purchases 7,500 Total $ L,t00,500 WHEREAS, funding for the 2007 capital improvements has been identified as follows: FAA Entitlement and Discretionary Grants $ 1,000,000 State Grants 25,000 Contributions - Fort Collins and Loveland 75,500 Total $ 1,100,500 WHEREAS, the City of Fort Collins' 50% share of the 2007 capital improvement costs is $550,250; and WHEREAS, the Airport Manager recommends the reappropriation of unspent and unencumbered funds from 2006, totaling $2,178,000, to be used in 2007 for Airport improvements as follows: Ramp/Taxiway Alpha Rehabilitation $ 1,924,770 Runway Fog Seal and Markings Repainting 181,520 FAA Master Plan Update 33,100 Airport Fire Fighting Equipment 17,760 Airfield Lighting Control System 9,780 Other Improvements 11,070 Total $ 2,178,000 WHEREAS, funding for the Airport reappropriation has been identified as follows: FAA Entitlement and Discretionary Grants $ 1,942,530 Fort Collins-Loveland Airport Prior Year Reserves 235,470 Total $ 2,178,000 WHEREAS, the City of Fort Collins' 50% share of the 2006 Airport reappropriation totals $1,089,000; 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 2007 Airport Operating Budget and authorizes the appropriation of TWO HUNDRED NINETY THOUSAND EIGHTY-FIVE DOLLARS ($290,085) 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 FIVE HUNDRED FIFTY THOUSAND TWO HUNDRED FIFTY DOLLARS ($550,250) to be used for 2007 capital improvements at the Fort Collins-Loveland Municipal Airport. -2- Section 3. That the City Council hereby authorizes the reappropriation of unspent and unencumbered 2006 Fort Collins-Loveland Municipal Airport funds, totaling ONE MILLION EIGHTY-NINE THOUSAND DOLLARS (S1,089,000) to be used for improvements at the Fort Collins-Loveland Municipal Airport. Introduced, considered favorably on first reading, and ordered published this 17th day of April, A.D. 2007, and to be presented for final passage on the 1 y of May, A.D. 2007. May ATTEST: City Clerk Passed and adopted on final reading on the I st day of May, A.D. 2007. Mayor ATTEST: City Clerk -3-