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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/01/2011 - SECOND READING OF ORDINANCE NO. 007, 2011, AUTHORI DATE: February 1, 2011 . STAFF: Mike Freeman _ t Keith Reester Second Reading of Ordinance No.007,2011,Authorizing the Appropriation of 2011 Fiscal Year Operating and Capital Improvement Funds for the Fort Collins-Loveland Municipal Airport. EXECUTIVE SUMMARY The 2011 annual operating budget for the Airport totals$726,390,and will be funded from Airport operating revenues, contributions from the Cities of Fort Collins and Loveland ($85,000 from each City), and interest earnings. This Ordinance, unanimously adopted on First Reading on January 18, 2011, appropriates the City of Fort Collins' contribution, which is a 50% share of the 2011 Airport budget and totals $363,195. This Ordinance also appropriates the City of Fort Collins'50%share of capital funds,totaling$608,500 for the Airport from federal and state grants; contributions from Fort Collins and Loveland; and the Airport General Fund. Most of the 2011 Airport capital funds, totaling $1,217,000, will be used to continue runway improvements and some funds are slated for utility master planning and design engineering to accommodate Airport business development. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading.. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary-January 18, 2011 (w/o attachments) ATTACHMENT DATE: January 18, 2011 AGENDA ITEM SUMMARY STAFF: Mike Freeman _ T COLLINS CITY COUNCIL Keith Reester First Reading of Ordinance No. 007, 2011, Authorizing the Appropriation of 2011 Fiscal Year Operating and Capital Improvement Funds for the Fort Collins-Loveland Municipal Airport. EXECUTIVE SUMMARY /7 The 2011 annual operating budget for the Airport totals$726,39.0 -fun and will be-funded from Airport operating revenues,_ contributions from the Cities of Fort COIIins ankoveland '($85,000 from' leach city), and interest earnings. This Ordinance appropriates the City of Fort Collins'contribution,which is a 50%share of the 2011 Airport budget and totals $363,195. This Ordinance also appropriates the City of Fort Collins'50%share of capital funds,totaling$608,500 for the Airport from federal and state grants; contributions from Fort Collins and Loveland; and the Airport General Fund. Most of the 2011 Airport capital funds, totaling $1,217,000, will be used to continue runway improvements and some funds are slated for utility master planning and design engineering to accommodate Airport business development. BACKGROUND / DISCUSSIONS,, /_. r-1� n /7 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 Fortgolls-L\oveland,MunicipalAirport located approximately 16 miles southeast of downtown Fort Collins, just west of'lnterstate 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%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 cacapital.pro�cts. 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,IDivisiori of Aeronautics. The annual operating costs for 2011 for the Airport are$726,390,and the City of Fort Collins contribution is$363,195. In addition, the Airport Manager is recommending additional capital expenditures and has identified the following funding sources: FAA Entitlement Grant $ 1,000,000 State Grant 108,500 Airport Revenues 108,500 Total $ 1,217,000 /ice /i-1 The additional capital expenditures wiljbe to continue runway improve em nts and for utility master planning and design engineering to accommodate airportlIbusiness development,$-1 21.7000\Thus,the City of Fort Collins'appropriation for the capital expenditures identified ab��s$6088,,500(5O o of the total). V J January 18, 2011 -2- ITEM 11 FINANCIAL/ ECONOMIC IMPACTS This Ordinance appropriates the City's 50% share($971,695)of the annual appropriation for fiscal year2011 for Fort Collins-Loveland Municipal Airport budget. The City of Loveland manages the Airport's budget and finances,however, 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. STAFF RECOMMENDATION ��� Staff recommends adoption of the Ordin" ancelon Firs R ading COPY COPY COPY . ORDINANCE NO. 007, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE APPROPRIATION OF 2011 FISCAL YEAR OPERATING AND CAPITAL IMPROVEMENT FUNDS FOR THE FORT COLLINS-LOVELAND MUNICIPAL AIRPORT WHEREAS, in 1963,the City of Fort Collins and the City of Loveland(the"Cities")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 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,(the "IGA")between the Cities 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 2011 Airport Operating Budget totaling $726,390 and the City's share is $363,195; and WHEREAS, it is the desire of the City Council to appropriate the necessary funds for operating costs of the Airport,totaling $363,195, for the fiscal year beginning January 1, 2011, and ending December 31, 2011; and WHEREAS,the Airport Manager recommends the following capital improvements for 2011, totaling $1,217,000, that are not included in the 2011 Airport Operating Budget: Taxiway Improvements and utility master planning and design engineering $ 1,217,000; and WHEREAS, funding for the 2011 capital improvements has.been identified as follows: FAA Entitlement Grants $ 1,000,000 State Grant 108,500 Airport Revenues 108.500 Total $ 1,217,000; and WHEREAS, the City's 50% share of the 2011 capital improvement costs is $608,500; and WHEREAS, under the IGA,the City's share of existing and unanticipated Airport revenue will be held and disbursed by the City of Loveland as an agent on behalf of the Cities since the City of Loveland provides finance and accounting services for the Airport; and WHEREAS, in accordance with Article V, Section 8(b), of the City Charter, 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 2011 Airport Operating Budget and authorizes the appropriation of THREE HUNDRED SIXTY-THREE THOUSAND ONE HUNDRED NINETY-FIVE DOLLARS ($363,195) to be expended to defray the operating costs of the Fort Collins-Loveland Municipal Airport. Section 2. That the City Council hereby authorizes the appropriation of SIX HUNDRED EIGHT THOUSAND FIVE HUNDRED DOLLARS ($608,500) to be used for 2011 capital improvements at the Fort Collins-Loveland Municipal Airport. Introduced, considered favorably on first reading, and ordered published this 18th day of January, A.D. 2011, and to be presented for final passage on the st ay of February, A.D. 2 11. A Mayor ATTEST: n City Clerk Passed and adopted on final reading on the 1 st day of February, A.D. 2011. Mayor ATTEST: City Clerk