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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/19/2007 - SECOND READING OF ORDINANCE NO. 077, 2007, AUTHORI ITEM NUMBER: 7 AGENDA ITEM SUMMARY DATE: June 19, 2007 FORT COLLINS CITY COUNCIL STAFF: Mike Freeman Dave Gordon SUBJECT Second Reading of Ordinance No. 077, 2007,Authorizing the Appropriation of Funds for the Fort Collins-Loveland Municipal Airport for Additional Capital and Operating Expenses. RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY This Ordinance,unanimously adopted on First Reading on June 5,2007,appropriates 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. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary- June 5, 2007. ATTACHMENT 1 ITEM NUMBER: 15 A-B AGENDA ITEM SUMMARY DATE: June 5, 2007 FORT COLLINS rMLp FF: Mike Freeman 11 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 wCeronau riate ty I/ e of the grant proceeds from the State of Colorado Division o s ($1 ; reim sement funds from tenants of the Airport Industrial Park($155, Fo m velan ort 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 Color .n o $ 00 as been offered to the Cities. Approval of the grant is reque d at t e e eh i rd to meet the State's deadline for encumbering these funds prior the en f the o hich its fiscal year end. The funds will be used for half of the Cities' c g d r t FAA t 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 incl the $ llio nti ent Grant as well as the 5% matching funds. However, th irpo ud d n in d e $250,000 State Grant, which was not known at the time of t budget epar no ing offered to the Cities and work associated with the Grant is inc ed ' u tal requ t. 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 anew 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 saeclu One P1O Yned the end of the year. This full time, benefited position will bAn additional appropriation ino 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. 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 pas5ZZ f June, A. . 2007. May r ATTEST: City Clerk Passed and adopted on final reading this 19th day of June, A.D. 2007. Mayor ATTEST: City Clerk