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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/07/2016 - ITEMS RELATING TO AMENDMENT OF THE AIRPORT INTERGOAgenda Item 6 Item # 6 Page 1 AGENDA ITEM SUMMARY June 7, 2016 City Council STAFF Jason Licon, Airport Director Mike Beckstead, Chief Financial Officer SUBJECT Items Relating to Amendment of the Airport Intergovernmental Agreement Recommended by the Northern Colorado Regional Airport Commission. EXECUTIVE SUMMARY A. Second Reading of Ordinance No.067, 2016, Approving the First Amendment to the Amended and Restated Intergovernmental Agreement for the Joint Operation of the Fort Collins-Loveland Municipal Airport, to be Known Henceforth as the Northern Colorado Regional Airport, and Ratification of Previous Actions. B. Second Reading of Ordinance No. 068, 2016, Amending Various Sections of the Code of the City of Fort Collins Relating to the Delegation of Authority to the Northern Colorado Regional Airport Commission and Change of the Name of the Fort Collins-Loveland Municipal Airport to the Northern Colorado Regional Airport. These Ordinances, unanimously adopted on First Reading on May 17, 2016, amend the Amended and Restated Intergovernmental Agreement (IGA) for the joint operation of the Northern Colorado Regional Airport. Ordinance No. 067, 2016, ratifies and reaffirms the approval of the IGA and creation of the Commission under the IGA by Resolution 2015-003 to comply with Article IV, Section 1 of the City Charter and actions taken by the Commission, its officers and members with respect to operation and management of the Airport pursuant to and within the scope of the IGA. Ordinance No.068, 2016, amends the City Code to address the impact the First Amendment has on the delegated authority with respect to Airport leases, grants, and expenditures. In addition, the change of the Airport name necessitates amendments to other provisions of the City Code to reflect that change. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, May 17, 2016 (w/o attachments) (PDF) 2. Ordinance No. 067, 2016 (PDF) 3. Ordinance No. 068, 2016 (PDF) Agenda Item 11 Item # 11 Page 1 AGENDA ITEM SUMMARY May 17, 2016 City Council STAFF Jason Licon, Airport Director Mike Beckstead, Chief Financial Officer SUBJECT Items Relating to Amendment of the Airport Intergovernmental Agreement Recommended by the Northern Colorado Regional Airport Commission. EXECUTIVE SUMMARY A. First Reading of Ordinance No.067, 2016, Approving the First Amendment to the Amended and Restated Intergovernmental Agreement for the Joint Operation of the Fort Collins-Loveland Municipal Airport, to be Known Henceforth as the Northern Colorado Regional Airport, and Ratification of Previous Actions. B. First Reading of Ordinance No. 068, 2016, Amending Various Sections of the Code of the City of Fort Collins Relating to the Delegation of Authority to the Northern Colorado Regional Airport Commission and Change of the Name of the Fort Collins-Loveland Municipal Airport to the Northern Colorado Regional Airport. The purpose of this item is to amend the January 22, 2015 Amended and Restated Intergovernmental Agreement for the joint operation of the Airport (“IGA”), delegate, within specific parameters, the authority for the Northern Colorado Regional Airport Commission to enter into longer lease agreements, grant agreements, and make expenditures for Airport operations or capital needs from appropriated, but unassigned reserves. Ordinance No. 067, 2016, also ratifies and reaffirms the approval of the IGA and creation of the Commission under the IGA by Resolution 2015-003 to comply with Article IV, Section 1 of the City Charter and actions taken by the Commission, its officers and members with respect to operation and management of the Airport pursuant to and within the scope of the IGA. Ordinance No.068, 2016, amends the City Code to address the impact the First Amendment has on the delegated authority with respect to Airport leases, grants, and expenditures. In addition, the change of the Airport name necessitates amendments to other provisions of the City Code to reflect that change. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading BACKGROUND / DISCUSSION At the April 27, 2016, meeting, the Airport Commission reviewed and approved a First Amendment to the Airport IGA establishing the Commission. The Commission recommends that in order to provide efficient airport operations, the City Council expand the Commission’s authority to:  enter into lease agreements within the maximum allowable terms as given by the FAA  enter into grant agreements on behalf of the two Cities up to a certain amount  provide a recommended budgetary reserve policy that will be used to create the ability for the Commission to spend balances of the Airport fund for Airport needs. ATTACHMENT 1 Agenda Item 11 Item # 11 Page 2 Amendment of the IGA requires the approval of both City Councils. Because both the underlying Airport IGA and the amendment deal with the assignment of powers and duties to an appointed commission, this action is being accomplished by Ordinance pursuant to Article IV, Section 1 of the City Charter regarding the establishment of appointive boards and commissions by ordinance. The Ordinance ratifies and reaffirms the approval of the IGA and creation of the Commission as set forth therein, and ratifies the actions of the Commission and its officers and members taken pursuant to the IGA. The First Amendment to the Airport IGA impacts certain other provisions of the City Code related to the Airport. Ordinance No. 068, 2016, amends City Code to address the delegated authority with respect to Airport leases, grants, and expenditures. In addition, the change of the Airport name necessitates amendments to other provisions of the City Code to reflect that change. Finally, the Commission has previously approved Rules and Regulations sub-delegating authority to the Airport Manager to sign Airport leases for a term of up to 10 years. -1- ORDINANCE NO. 067, 2016 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE FIRST AMENDMENT TO THE AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT FOR THE JOINT OPERATION OF THE FORT COLLINS-LOVELAND MUNICIPAL AIRPORT, TO BE KNOWN HENCEFORTH AS THE NORTHERN COLORADO REGIONAL AIRPORT, AND RATIFICATION OF PREVIOUS ACTIONS WHEREAS, in 1963, the cities of Fort Collins and Loveland (the “Cities”) established a regional general aviation facility and became the joint owners and operators of the Fort Collins- Loveland Municipal Airport (the “Airport”); and WHEREAS, pursuant to Section 29-1-203 of the Colorado Revised Statutes (and Article II, Section 16, of the Fort Collins City Charter), the Cities are authorized by law to contract with one another to provide for the joint exercise of any function, service or facility lawfully authorized to each of them if such contracts are approved by the Councils of the Cities; and WHEREAS, the Cities currently operate and maintain the Airport pursuant to that certain Amended and Restated Intergovernmental Agreement for the Joint Operation of the Fort Collins- Loveland Airport dated January 22, 2015 (the “IGA”), which established the Northern Colorado Regional Airport Commission (the “Commission”) as the Airport governance structure; and WHEREAS, by adoption of Resolution 2015-003 on January 6, 2015, the City Council approved the IGA; and WHEREAS, the Commission, at its April 27, 2016 meeting, approved and recommended adoption by the Cities of certain proposed amendments to IGA expanding the powers delegated to the Commission as set forth in the First Amendment to the Amended and Restated Intergovernmental Agreement for the Joint Operation of the Fort Collins-Loveland Municipal Airport attached hereto as Exhibit “A” (the “First Amendment”); and WHEREAS, at the April 27, 2016 meeting, the Commission also voted to change the name of the Airport to the Northern Colorado Regional Airport; and WHEREAS, in accordance with the provisions of Article IV, Section 1 of the City Charter regarding the establishment of appointive boards and commissions, the City Council desires by adoption of this Ordinance to ratify and reaffirm the approval of the IGA and creation of the Commission as set forth therein; and WHEREAS, the City Council has determined that amendment of the IGA is necessary to reflect its desire to expand the powers delegated to the Commission as set forth in the First Amendment in order to provide more effective and efficient Airport management and operation; and -2- WHEREAS, the Council, on behalf of the City in its role as an owner and operator of the Airport under the IGA, concurs with the Commission’s action changing the name of the Airport and declares that henceforth the Airport shall be known as the Northern Colorado Regional Airport. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes any and all determinations and findings contained in the recitals set forth above. Section 2. That, by adoption of this Ordinance City Council hereby ratifies and reaffirms the approval of the IGA and creation of the Commission as set forth therein and all actions heretofore taken by the Commission, its officers and members with respect to operation and management of the Airport pursuant to and within the scope of the IGA. Section 3. That the First Amendment to the Amended and Restated Intergovernmental Agreement for the Joint Operation of the Fort Collins-Loveland Municipal Airport attached hereto as Exhibit “A” and incorporated herein by reference is hereby approved. Section 4. That the Mayor is authorized to execute the First Amendment to the Amended and Restated Intergovernmental Agreement for the Joint Operation of the Fort Collins- Loveland Municipal Airport together with such changes to the form of said Agreement as the City Manager, in consultation with the City Attorney, determines to be necessary and appropriate to protect the interests of the City provided such changes are materially consistent with the terms of this Ordinance and the intended purpose of said Agreement. Introduced, considered favorably on first reading, and ordered published this 17th day of May, A.D. 2016, and to be presented for final passage on the 7th day of June, A.D. 2016. __________________________________ Mayor ATTEST: _____________________________ City Clerk -3- Passed and adopted on final reading on this 7th day of June, A.D. 2016. __________________________________ Mayor ATTEST: _____________________________ City Clerk FIRST AMENDMENT TO THE AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT FOR THE JOINT OPERATION OF THE, FORT COLLINS-LOVELAND MUNICIPAL AIRPORT, NOW KNOWN AS THE NORTHERN COLORADO REGIONAL AIRPORT THIS First Amendment is made and entered into this _____ day of , 2016, between THE CITY OF LOVELAND, COLORADO, a municipal corporation, and THE CITY OF FORT COLLINS, COLORADO, a municipal corporation, hereinafter referred to individually as a “City” and collectively as the "Cities." W I T N E S S E T H : WHEREAS, in 1963, the Cities established a regional general aviation facility and became the joint owners and operators of the Fort Collins-Loveland Municipal Airport, now known as the Northern Colorado Regional Airport (the "Airport"); and WHEREAS, pursuant to Section 29-1-203 of the Colorado Revised Statutes (and Article II, Section 16, of the Fort Collins City Charter), the Cities are authorized by law to contract with one another to provide for the joint exercise of any function, service or facility lawfully authorized to each of them if such contracts are approved by the Councils of the Cities; and WHEREAS, the Cities currently operate and maintain the Airport pursuant to that certain Amended and Restated Intergovernmental Agreement for the Joint Operation of the Fort Collins- Loveland Airport dated January 22, 2015 (the “IGA”), which established the Northern Colorado Regional Airport Commission (the “Commission”) as the Airport governance structure; and WHEREAS, in the IGA, the Cities set forth the terms and conditions pursuant to which the Airport will be operated and maintained as the Cities’ joint venture; and WHEREAS, the Cities have further determined that amendment of the IGA is necessary to reflect their desire to clarify the authorized powers of the Commission and delegate additional Airport duties and responsibilities to the Commission in order to provide more effective and efficient Airport management and operation. NOW, THEREFORE, IT IS AGREED by and between the parties hereto as follows: 1. That Section 1. of the IGA is hereby amended to read in full as follows: 1. Joint Airport Operation. The operation and maintenance of the Airport is a joint venture between the City of Fort Collins and the City of Loveland, with full management and policy-making authority vested equally in both Cities. The following management and policy making issues (“Policy Issues”) are reserved to and shall require approval of the City Councils: A. adoption of the Airport Master Plan; EXHIBIT A 2 B. approval of and participation in federal and state grant agreements except those that the Commission is authorized to approve under section 4 below; C. approval and execution of federal and state grant assurances, the approval of which is hereby delegated to the City Managers of each City as to their City; D. purchases and sales of real property or structures; E. construction of capital projects except to the extent of the authority granted to the Commission in section 4 below; F. approval of the annual Airport budget, which shall include a capital reserve fund (“Capital Reserve”) and an operating reserve fund (“Operating Reserve”); and G. approval of each Cities’ annual contributions to and appropriation of the Airport budget (the “Approved Airport Budget”). 2. That Section 4. of the IGA is hereby amended to read in full as follows: 4. Commission Powers and Scope of Authority. The Cities do hereby delegate to the Commission, to the extent consistent with and subject to any Airport plans or policies jointly adopted by the City Council, applicable federal and state law, the Cities’ charters, ordinances and regulations, as they exist or as amended, the terms and conditions of Federal Aviation Administration (“FAA”) regulations or other grant agreements, including without limitation any grant assurances set forth therein, and any other limitations set forth herein, the following power and authority to: A. Enter into Airport agreements, including Airport property leases and contracts for goods and services, provided that such agreements are: i. in a form generally approved by the City Manager and City Attorneys for each City; ii. as to leases of Airport property and improvements, are for an aeronautical or general aviation use or a use which directly augments an aeronautical or general aviation use, are for a use permitted by any land use or zoning codes or regulations applicable to the Airport property, and are for a total term not to exceed fifty years; iii. within the Approved Airport Budget and appropriations, and iv. entered into in accordance with City of Loveland Purchasing policies. B. Authorize Airport activities; C. Adopt or revise Airport rules and regulations, including minimum standards; D. Develop budgets, establish capital and operations reserve policies and propose capital projects consistent with Approved Airport Budget; E. Expend appropriated funds consistent with the Approved Airport Budget, provided that any expenditures from Capital Reserves and Operating Reserves included in the Approved Airport Budget do not exceed the lesser of: i. Twenty-five percent (25%) of the annual Budget approved by the Councils, or 3 ii. Fifty percent (50%) of the unassigned balances of the Airport Fund including Operating Reserves, and the Airport Capital Fund. Notwithstanding the foregoing, the expenditure of Capital Reserves and Operating Reserves permitted under this Section 4.E shall be permitted only to the extent that such amounts have been appropriated by the Cities, and do not result in reduction of the Reserves below any minimum amount required by policy approved by the Cities; F. Establish Airport rates, fees and charges on an annual basis; G. Establish Airport service levels; H. Develop an Airport operating plan, including security and emergency plans; and I. Direct the Airport Manager in the provision of Airport services, including the establishment of goals and objectives for each year and annual evaluations of the Airport Manager’s performance in relation thereto in order to make recommendation to the Loveland City Manager regarding employment matters involving the Airport Manager; J. Sign grant agreements to the extent permitted by grantors, so long as such grant agreements: (i) do not include commitment of Airport revenues and funds for grant matches of more than $300,000 from appropriated funds included in the Approved Airport Budget; (ii) do not involve capital construction projects unless such projects are included in the Approved Airport Budget; and (iii) are approved by the City Managers, to the extent the City Managers are authorized by their respective City Councils to do so; K. Provide recommendations to the Cities regarding Airport policy issues. 3. That the name of the Airport throughout the IGA shall be Northern Colorado Regional Airport. 4. That except as amended by this First Amendment, all other provisions of the IGA shall remain in full force and effect. IN WITNESS HEREOF, this First Amendment has been executed the day and year first above written. THE CITY OF LOVELAND, COLORADO A Municipal Corporation By: __________________________ Mayor 4 ATTEST: ______________________ City Clerk APPROVED AS TO FORM: ______________________ Assistant City Attorney THE CITY OF FORT COLLINS, COLORADO A Municipal Corporation By: ______________________________ Mayor ATTEST: ______________________ City Clerk APPROVED AS TO FORM: ______________________ City Attorney FIRST AMENDMENT TO THE AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT FOR THE JOINT OPERATION OF THE FORT COLLINS-LOVELAND MUNICIPAL AIRPORT -1- ORDINANCE NO. 068, 2016 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING VARIOUS SECTIONS OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO THE DELEGATION OF AUTHORITY TO THE NORTHERN COLORADO REGIONAL AIRPORT COMMISSION AND CHANGE OF THE NAME OF THE FORT COLLINS-LOVELAND MUNICIPAL AIRPORT TO THE NORTHERN COLORADO REGIONAL AIRPORT WHEREAS, in 1963, the cities of Fort Collins and Loveland (“Cities”) established a regional general aviation facility and became the joint owners and operators of the Fort Collins- Loveland Municipal Airport (the “Airport”); and WHEREAS, pursuant to Section 29-1-203 of the Colorado Revised Statutes (and Article II, Section 16, of the Fort Collins City Charter), the Cities are authorized by law to contract with one another to provide for the joint exercise of any function, service or facility lawfully authorized to each of them if such contracts are approved by the Councils of the Cities; and WHEREAS, the Cities currently operate and maintain the Airport pursuant to that certain Amended and Restated Intergovernmental Agreement for the Joint Operation of the Fort Collins- Loveland Airport dated January 22, 2015, (the “IGA”), which established the Northern Colorado Regional Airport Commission (the “Commission”) as the Airport governance structure; and WHEREAS, by adoption of Resolution 2015-003 on January 6, 2015, the City Council approved the IGA; and WHEREAS, the Commission, at its April 27, 2016 meeting, approved and recommended adoption by the Cities of certain proposed amendments to IGA expanding the powers delegated to the Commission as set forth in the First Amendment to the Amended and Restated Intergovernmental Agreement for the Joint Operation of the Fort Collins-Loveland Municipal Airport (the “First Amendment”); and WHEREAS, at the April 27, 2016 meeting, the Commission also voted to change the name of the Airport to the Northern Colorado Regional Airport; and WHEREAS, with its adoption of Ordinance 067, 2016, the City Council approved the First Amendment to the IGA to reflect its desire to expand the powers delegated to the Commission as set forth in the First Amendment in order to provide more effective and efficient Airport management and operation; and WHEREAS, with the adoption of Ordinance 067, 2016, the City Council also ratified and affirmed approval of the IGA and creation of the Commission as set forth therein pursuant to the provisions of Article IV, Section 1 of the City Charter regarding the establishment of appointive boards and commissions; and -2- WHEREAS, the Council, on behalf of the City in its role as an owner and operator of the Airport under the IGA, concurs with the Commission’s action changing the name of the Airport and declares that henceforth the Airport shall be known as the Northern Colorado Regional Airport; and WHEREAS, the Council desires to amend the City Code to enable the delegation of powers to the Commission as set forth in the First Amendment and to make other conforming changes. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes any and all determinations and findings contained in the recitals set forth above. Section 2. That the definition of “Airport” contained in Section 7.5-90 of the Code of the City of Fort Collins is hereby amended to read as follows: Airport shall mean the area of the Northern Colorado Regional Airport. Section 3. That Subsection Section 7.5-91(a) of the Code of the City of Fort Collins is hereby amended to read as follows: (1) The City, together with the City of Loveland, owns and controls that certain Airport and air navigation facility located in Larimer County, State of Colorado, and known as the Northern Colorado Regional Airport (the "Airport"). Section 4. That Subsection 23-113(b) of the Code of the City of Fort Collins is hereby amended to read as follows: . . . (b) Interests in other real property owned in the name of the City may be leased subject to the following provisions: (1) The City Council may lease any and all interests in real property owned in the name of the City if the City Council first finds that the lease is in the best interests of the City. Such leases may be approved by the City Council by resolution unless the proposed term of the lease exceeds twenty (20) years, in which event the lease must be approved by the City Council by ordinance. (2) The City Manager may lease, for a definite term of five (5) years or less, any interests in real property owned in the name of the City. This five-year limitation shall not apply to the lease of real property located at the Northern Colorado Regional Airport. -3- (3) The Northern Colorado Regional Airport Commission may, on behalf of and in the name of the City and the City of Loveland, as co-owners and operators of the Northern Colorado Regional Airport, lease an interest in real property Airport subject to the following requirements: (a) All leases of Airport property shall be in a form generally approved by the City Manager and the City Attorney; (b) The use to which the real property is to be put under the lease is an aeronautical or general aviation use or a use which directly augments an aeronautical or general aviation use; (c) The use to which the real property is to be put is permitted by any land use or zoning codes or regulations applicable to the real property; and (d) The lease and the use to which the real property is to be put are in compliance with all Federal Aviation Administration and state laws, regulations and agreements applicable to the property to be leased; (e) The total term of the lease, including all options to extend, shall not exceed fifty years; and (f) Any direct monetary obligations created by the lease are within the approved Airport budget and appropriations. (4) The City Manager shall promptly notify the City Council of the execution of any lease agreement entered into by the City pursuant to Paragraph (2) above. (5) The Northern Colorado Regional Airport Commission shall notify the City Council of the execution of any lease agreement entered into by the Commission on behalf of the Cities pursuant to Subsection (3) above. Introduced, considered favorably on first reading, and ordered published this 17th day of May, A.D. 2016, and to be presented for final passage on the 7th day of June, A.D. 2016. __________________________________ Mayor ATTEST: _____________________________ City Clerk -4- Passed and adopted on final reading on this 7th day of June, A.D. 2016. __________________________________ Mayor Pro Tem ATTEST: _____________________________ City Clerk