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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/04/2007 - SECOND READING OF ORDINANCE NO.138, 2007, AUTHORIZ ITEM NUMBER: 7 AGENDA ITEM SUMMARY DATE: December4, 2007 FORT COLLINS CITY COUNCIL STAFF: Mike Freeman Steve Engemoen Dave Gordon SUBJECT Second Reading of Ordinance No.138, 2007, Authorizing the Appropriation of 2008 Fiscal Year Operating and Capital Improvement Funds of the Fort Collins-Loveland Municipal Airport. RECOMMENDATION Staff recommends adoption of this Ordinance on Second Reading. EXECUTIVE SUMMARY This Ordinance unanimously adopted on First Reading on November 20, 2007, appropriates the City's 50% share ($3,184,735) of the annual appropriation for the fiscal year 2008 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. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary- November 20, 2007. ATTACHMENT 1 ITEM NUMBER: 15 AGENDA ITEM SUMMARY DATE: November20, 2007 FORT COLLINS C I FF: Mike Freeman Steve Engemoen Dave Gordon SUBJECT First Reading of Ordinance No.138, 2007, Authorizing the Appropriation of 2008 Fiscal Year Operating and Capital Improvement Funds of the Fort Collins-Loveland Municipal Airport. RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT 01 This Ordinance appropriates thl it ; 15 ojse 184,73 of the annual appropriation for the fiscal year 2008 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. EXECUTIVE SUMMARY The 2008 annual operating budget for the Airport totals $648,310, 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 2008 Airport budget and totals $324,150. This Ordinance also appropriates eCi Fort Colliny50%' hare of capital funds, totaling $2,860,580 for the Airport fro ederal stat ts; arges;contributions from Fort Collins and Loveland; and th irport enera TAirport capital funds, totaling $5,721,160,will be used to reh ' ita th i rim 15/33 and cross-wind runway 6/24, repairing a portion of the t-hangar ramp area, and purchasing of two mowing machines. Rehabilitation of the primary runway will include reconstructing a portion of the north end of the runway, overlaying the remaining length of the runway with a five inch asphalt mat,replacement of existing runway lights, engineering design services, surveying, geotechnical services, and construction management services. Rehabilitation of the cross wind runway is being funded entirely by the tenants in the Airport Industrial Park. November 20, 2007 -2- Item No. 15 BACKGROUND In 1963,the City of Fort Colliblishment of a regional aviation facility and became o ers Coerat th o o ns-Loveland Municipal Airport, located approximately 16 mil southe of d n Fort llins,just west of Interstate 25 on Earhart Road. The Airport is o a v re bet n 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 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 fo 008 f DeA $ 0, and the City of Fort Collins contribution is $324,155. In addition,the Airport Manager is recommending additional capital expenditures and has identified the following funding sources: FAA Entitlement and Discretionary Grants $ 5,000,000 State Grants 250,000 Gifts/Donations 310,000 Contributions - Fort Collins and Loveland 75,500 Airport Revenues 85,660 Total $ 5,721,160 The additional capital expenditures will be for the following improvements: Primary Runway 15/33 Impror is $ 5,263,160 Cross Wind Runway 6/24 Imp t31Q,000 T-Hangar Pavement MainteneP 114,000 Mowing Equipment Y 34,000 Total $ 5,721,160 Thus, the City of Fort Collins' appropriation for the capital expenditures identified above is $2,860,580 (50% of the total). ORDINANCE NO. 138, 2007 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE APPROPRIATION OF 2008 FISCAL YEAR OPERATING AND CAPITAL IMPROVEMENT FUNDS OF 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 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 2008 Airport Operating Budget totaling$648,310 and the City of Fort Collins' 50% share is $324,155; and WHEREAS, it is the desire of the City Council to appropriate the necessary funds for operating costs of the Airport, totaling $324,155, for the fiscal year beginning January 1, 2008, and ending December 31, 2008; and WHEREAS, the Airport Manager recommends the following capital improvements for 2008, totaling $5,721,160, that are not included in the 2008 Airport Operating Budget: Primary Runway 15/33 Improvements $ 5,263,160 Cross Wind Runway 6/24 Improvements 310,000 T-Hangar Pavement Maintenance 114,000 Mowing Equipment 34,000 Total $ 5,721,160 WHEREAS, funding for the 2008 capital improvements has been identified as follows: FAA Entitlement and Discretionary Grants $ 5,000,000 State Grants 250,000 Donations/Gifts 310,000 Contributions - Fort Collins and Loveland 75,500 Airport Revenues 85,660 Total $ 5,721,160 WHEREAS, the City of Fort Collins' 50% share of the 2008 capital improvement costs is $2,860,580; 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 2008 Airport Operating Budget and authorizes the appropriation of THREE HUNDRED TWENTY-FOUR THOUSAND ONE HUNDRED FIFTY-FIVE DOLLARS ($324,155) 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 TWO MILLION EIGHT HUNDRED SIXTY THOUSAND FIVE HUNDRED EIGHTY DOLLARS ($2,860,580) to be used for 2008 capital improvements at the Fort Collins-Loveland Municipal Airport. Introduced, considered favorably on first reading, and ordered published this 20th day of November, A.D. 2007, and to be presented for final passage on the 4th day of December, A.D. 2007. Mayo ' ATTEST: ��� City Clerk -2- Passed and adopted on final reading on the 4th day of December, A.D. 2007. Mayor ATTEST: City Clerk -3-