Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/06/2015 - ITEMS RELATING TO THE FORT COLLINS-LOVELAND MUNICIAgenda Item 10 Item # 10 Page 1 AGENDA ITEM SUMMARY January 6, 2015 City Council STAFF Jason Licon, Airport Director Mike Beckstead, Chief Financial Officer SUBJECT Items Relating to the Fort Collins-Loveland Municipal Airport. EXECUTIVE SUMMARY A. Resolution 2015-002 Approving the Fort Collins-Loveland Airport Strategic Plan. B. Resolution 2015-003 Authorizing the Mayor to Execute an Amended and Restated Intergovernmental Agreement Between the City and the City of Loveland Regarding the Operation of the Fort Collins- Loveland Airport. The purpose of this item is to adopt the Airport Strategic Plan and approve the Amended and Restated Intergovernmental Agreement between the City of Fort Collins and the City of Loveland. STAFF RECOMMENDATION Staff recommends adoption of the Resolutions. BACKGROUND / DISCUSSION Strategic Plan The Airport Strategic Plan is the product of a joint planning effort that involved regional business leaders, active Airport users and stakeholders, elected officials, and staff from the two Cities. The Airport Strategic Plan identifies action items that will help the Airport achieve a reimagined vision. The loss of the Airport’s commercial air carrier focused attention on the Airport’s economic development opportunities and potential. The resulting strategy will guide Airport decisions for the next five to seven years and builds upon the Airport’s existing Master Plan and Business Plan. The critical items that were identified are:  Protect against residential encroachment near the Airport  Create a sustainable business model with potential revenue streams and financing for the Airport  Encourage immediate private investment  Revise the Airport governance structure and authority for the governing board  Rebrand the Airport and more productively engage the public. Intergovernmental Agreement Since 1963, the City of Fort Collins and the City of Loveland have jointly owned and operated the Fort Collins/Loveland Municipal Airport. Since this time the Cities have tried a range of governance structures, including an Airport Board, Ad Hoc Committee, Airport Authority, and Joint Steering Committee. The 1994 Intergovernmental Agreement set up an Airport Steering Committee, composed of the Mayors and City Managers from each City, an Airport Liaison from each City and the Airport Manager. Agenda Item 10 Item # 10 Page 2 The proposed governance structure will replace the existing Airport Steering Committee with an Airport Commission. The Commission will be created by intergovernmental agreement between the two owners of the Airport, the Cities of Fort Collins and Loveland. The structure and scope of the proposed Commission would be similar in many ways to the Poudre Fire Authority and Loveland Fire Rescue Authority. The Commission will be vested with more powers than the current Steering Committee, lessening the need for considerations of individual decisions by the two separate City Councils. The Commission’s board structure will be more inclusive than the existing Steering Committee structure, with its membership determined by the two owner City Councils. Please note: in the 1980s, the Airport was governed for some years by an Airport Authority, created pursuant to State law. The proposed Airport Commission is not an Airport Authority pursuant to State law. Key features of the Commission: The Commission will be composed of seven (7) members, as follows:  (2) Two members appointed by the Loveland City Council which members shall be Council members or employees  (2) Two members appointed by the Fort Collins City Council which members shall be Councilmembers or employees  One “Citizen Member” appointed by the Fort Collins City Council  One “Citizen Member” appointed by the Loveland City Council  One “Joint Citizen Member” appointed by agreement of the City Councils of Loveland and Fort Collins. A “Citizen Member” is defined as an individual residing within the Growth Management Area (“GMA”) of the City of the appointing City Council, or owning or leasing real property or operating a business within the Airport area of influence as defined in the Airport Master Plan; provided that such member shall not be an employee or City Councilmember of the Cities. The “Joint Citizen Member” is defined as an individual residing within the GMA of the either of the Cities, or owning or leasing real property or operating a business within the Airport area of influence as defined in the Airport Master Plan; provided that such member shall not be an employee or City Councilmember of the Cities. Citizen Members shall serve a term of four years at the pleasure of the appointing City Council, subject to removal at any time without cause. The Joint Citizen Member shall serve a term of four years, subject to removal at any time without cause upon the mutual agreement of the City Councils. City Council members and employees of the Cities appointed as members of the Commission shall have no fixed term, but shall be subject to reappointment or removal at the pleasure of the appointing City Council. Appointments to fill vacancies by Citizen Members or the Joint Citizen Member shall be made for the remainder of the term and shall be filled by the appointing City Council, or, in the case of the Joint Citizen Member, by the mutual agreement of the City Councils. The Commission will meet monthly to direct the affairs of the Airport. Level of Authority Granted to the Commission The Commission shall have power to:  Enter into Airport agreements, including Airport property leases and contracts for goods and services, provided that such agreements are in a form generally approved by the Cities  Authorization of Airport activities  Adoption or revise Airport rules and regulations, including minimum standards  Development of budgets and proposed capital projects  Establish Airport rates, fees and charges on an annual basis  Establish Airport service levels  Develop an Airport operating plan, including security and emergency plans; and  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 on order to make recommendation to the Loveland City Manager regarding employment matters involving the Airport Manager. Neither City shall be required to name a staff liaison to the Agenda Item 10 Item # 10 Page 3 Airport Authority. Airport operations shall be governed by the IGA. Powers Retained by City Councils City Councils retain the powers not specifically delegated to the Airport Commission by the IGA. Of particular note: the owner City Councils retain approval of the annual contributions to the Airport Budget, approval of the Airport Master Plan, participation in federal and state grant agreements, purchases and sales of real property or structures, and construction of capital projects. Key Benefits The two primary benefits expected are:  Increased participation and involvement of interested parties and stakeholders. Private sector participants through the strategic planning process have consistently indicated that a renewed governance structure is critical to investor confidence in working with the Airport.  Streamlined decision-making and administration: the vesting of more authority in the Commission will facilitate decision-making, as well as routine administrative tasks. It is expected that the Airport would be able to be more nimble and responsive in dealing with various matters. FINANCIAL / ECONOMIC IMPACTS Adoption of the Strategic Plan will not have a direct financial impact, although it is anticipated that the achievement of action items will have a positive financial impact. Approval of the Amended and Restated Intergovernmental Agreement will not have a direct financial impact. BOARD / COMMISSION RECOMMENDATION On October 29, 2014, the Airport Steering Committee voted unanimously to recommend approval of the Airport Strategic Plan (Attachment 1) PUBLIC OUTREACH  Development of the strategic plan is a product of a joint planning effort conducted by the Cities of Fort Collins and Loveland with participation from regional business leaders, active Airport users, stakeholders, and elected officials.  The Airport Strategic Plan revision has been presented at two joint City Council meetings held on April 29, 2014 and November 3, 2014.  The Airport Steering Committee held public meetings to discuss the Airport Strategic Plan on the following dates: o May 22, 2014 o October 9, 2014 special meeting o October 29, 2014 special meeting  A public informational meeting was held at the Airport on October 16th with a presentation on the draft Airport Strategic Plan ATTACHMENTS 1. Airport Steering Committee minutes, October 29, 2014 (PDF) 2. Powerpoint presentation (PDF) Airport Steering Committee Minutes October 29, 2014 Call to Order: Mayor Gutierrez called the meeting of the Airport Steering Committee to order on the above date at 4:32 p.m. Steering Committee Members in Attendance: Mayor Cecil Gutierrez, Mayor Karen Weitkunat, Loveland City Manager Bill Cahill, Fort Collins City Manager Darin Atteberry Approval of Minutes Motion: Mr. Cahill made the motion, Mr. Atteberry seconded and all approved. Citizen Comments: Mr. Howard Abraham appreciates the staff and the joint effort on the crack sealing. Item 1: Airport Strategic Plan- Jason Licon Summary: The Airport area represents a development zone that has great potential for future development. As a result of Allegiant Airlines discontinuing their service at the Airport the Cities have now focused attention on unlocking the economic development potential found within the Airport area. This focus has led the Cities of Loveland and Fort Collins to direct staff to deliberately and specifically prioritize this area in the two Cities’ economic development plans and create a strategic process with private sector participation, which has brought forth new ideas for consideration. The Airport Strategic Plan is the product of this joint planning effort that involved regional business leaders, active airport users, elected officials, and staff from the two Cities. The plan identifies key recommended strategies and tactics that will help the Airport achieve the reorganized vision. The Strategy has been approved by the private sector participants and has been also opened up to airport organizations and businesses for input. The attached document is the final draft of the Airport Strategic Plan. Discussion:  The committee discussed the results of the public open house held on October 16th.  Changes needed to the plan were identified.  There is private development interest in the airport right now, timing is critical to capture that. Direction: Mr. Cahill motioned to make a positive recommendation for adoption to both City Councils. Mr. Atteberry second and all approved. Adjournment: The meeting was adjourned at 5:13 p.m. ATTACHMENT 1 Fort Collins City Council Meeting January 6, 2015 ATTACHMENT 2 Airport Strategic Plan Goals • Create an environment that will augment the ability for the airport to attract investment into the Airport • Enhance financial sustainability • Reduce reliance upon the Cities, State, and Federal funding sources • Preserve Airport investment and functionality • Limit negative social impacts and increase positive impacts • Actively limiting non-compatible land use near the Airport will result in a reduction of negative social impact • Enhanced accessibility through the pursuit of scheduled air service will enhance positive social impact Airport Strategic Plan Development • Created through a public involvement program where Airport stakeholders, Elected Officials, and City Staff collaborated on an updated Airport Vision and Strategy • A three month City Staff led stakeholder working group met in Aug – October 2013. The group engaged into a stakeholder resource strategic planning session spanning through April 2014 • Five public meetings held including Two Joint City Council Meetings • Development of five Strategic Priorities to achieve the Airport vision • Timeframe for the strategic plan is estimated between 5 – 7 years Airport Strategic Plan Updated Airport Vision Highlights • Airport is Northern Colorado’s regional airport supporting general aviation, regional air carrier services, and business opportunities for aviation and that of compatible use • The Airport is the first impression to area visitors and should reflect the regional values and vision of the communities it serves • The Airport is part of an active multi-modal transportation system that has excellent facilities and infrastructure including general and commercial aviation services that will be supportive to the region’s transportation needs. Airport Strategic Plan Action Items (not prioritized) • Protect against residential encroachment on the airport • Create a sustainable business model with potential revenue streams and financing for FNL • Encourage immediate private investment • Revise the Airport governance structure and authority for the governing board • Chosen as the first step as most action items are directly linked to this • Rebrand the Airport and more productively engage the public Airport Governance Goals • Streamline decision making and administration • Reduce cost and time spent on duplication of efforts • Promote participation and involvement from interested parties and Airport stakeholders • Ability for involvement will enhance and motivate Proposed changes • Creation of a seven member Airport Commission • Two members appointed by the Loveland City Council which members shall be Council members or employees • Two members appointed by the Fort Collins City Council which members shall be Council members or employees • One “Citizen Member” appointed by the Fort Collins City Council • One “Citizen Member” appointed by the Loveland City Council • One “Joint Citizen Member” appointed by agreement of the City Councils of Loveland and Fort Collins Airport Governance The Commission shall have the power to: • Enter into Airport agreements, including Airport property leases and contracts for goods and services, provided that such agreements are in a form generally approved by the Cities • Authorization of Airport activities • Adoption or revise Airport rules and regulations, including minimum standards • Development of budgets and proposed capital projects • Establish Airport rates, fees and charges on an annual basis • Establish Airport service levels • Develop an Airport operating plan, including security and emergency plans • Direct the Airport Manager in the provision of Airport services, including the establishment of goals and objectives for each year and annual evaluations of performance Airport Governance Powers retained by the City Councils: • Approve the Airport Master Plan • Approve the annual contributions to the Airport budget • Participate in Federal and State Grant agreements • Purchases and sales of real property or structures • Construction of capital projects - 1 - RESOLUTION 2015-002 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE FORT COLLINS-LOVELAND AIRPORT STRATEGIC PLAN WHEREAS, the cities of Fort Collins and Loveland (jointly, the “Cities”) jointly own and operate the Fort Collins-Loveland Municipal Airport (the “Airport”); and WHEREAS, the Cities desire to create a unified vision regarding economic development of the Airport that includes the private sector; and WHEREAS, regional business leaders, active Airport users, elected officials and staff from both Cities have worked together to create a strategic plan to develop the Airport’s economic potential; and WHEREAS, as a result of such efforts, the Cities have established the Fort Collins- Loveland Strategic Plan attached hereto as Exhibit “A” and incorporated herein by reference (the “Strategic Plan”); and WHEREAS, the City Council believes that adoption of the Strategic Plan is in the best interests of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Strategic Plan is hereby approved. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 6th day of January, A.D. 2015. _________________________________ Mayor ATTEST: _____________________________ City Clerk ACTION ITEMS STRATEGIC PLAN FIVE STRATEGIES FORT COLLINS AND LOVELAND CITY COUNCIL MEMBERS TACTICS Protect against residential encroachment on the airport. Residential encroachment is a significant problem for airports around the nation. Fort Collins-Loveland Airport has had limited encroachment problems but must guard against this threat to the Airport’s long term future. SITUATION Moving forward AIRPORT AREA WORKING GROUP The recent loss of the Airport’s only commercial air carrier has focused attention on the Airport Area’s economic development opportunities. The Airport Area has tremendous potential for future development. The Cities of Loveland and Fort Collins have deliberately and specifically prioritized this area in the two Cities’ economic development plans and created a strategic process with private sector participation, which has brought forth new ideas for consideration. This resulting strategy will guide airport decisions for the next five to seven years and builds upon the Airport’s existing Master Plan and Business Plan. 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. Create a sustainable business model with potential revenue streams and financing for FNL. The loss of commercial service has deprived the Airport of a major revenue stream. The Airport needs an updated business model which will create and rely upon diverse revenue streams. Encourage immediate private investment. Private investment capital is needed for future airport development due to limited public funding availability. A clearer process is needed to attract high quality investment. Revise the Airport governance structure and authority for the governing board. Current Airport governance structure needs to become more nimble and responsive. In addition, the governance structure should enlist greater participation and stakeholder involvement. Rebrand the Airport and more productively engage the public. Greater public engagement and understanding AIRPORT AREA ECONOMIC DEVELOPMENT AND LAND USE CONCEPTUAL STRATEGY MAPS AIRPORT AREA DEVELOPMENT PROPERTY AVAILABLE FOR DEVELOPMENT ON AIRPORT Through the utilization of existing planning information, and the recommendation and input of the Airport Area Working Group, an airport area development map was created. This was done in order to identify where potential development opportunities may exist and be placed in a manner consistent with existing developed areas and transportation resources. ON AIRPORT AREA DEVELOPMENT The map identifies locations within the Airport boundaries for development opportunities. One of the Airport’s primary assets is undeveloped land. It is because of this resource it is critical to ensure that it is developed in a way that is consistent with existing and future demand. COMPATIBLE LAND USE The Airport area has experienced a high level of development over the past few years. The area now represents a diverse mix of land use. In order to maintain a healthy and high functioning transportation center, it will require adjacent area developments to be compatible with Airport activities. - 1 - RESOLUTION 2015-003 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE MAYOR TO EXECUTE AN AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY AND THE CITY OF LOVELAND REGARDING THE OPERATION OF THE FORT COLLINS-LOVELAND AIRPORT WHEREAS, in 1963, the City of Fort Collins and City of Loveland (jointly, the “Cities”) agreed to the establishment of a regional general aviation facility and become the owners and operators of the Fort Collins-Loveland Municipal Airport (the “Airport”); and WHEREAS, the Cities currently operate and maintain the Airport pursuant to that certain Intergovernmental Agreement for the Joint Operation of the Fort Collins-Loveland Municipal Airport dated May 16, 2000, as amended by that certain first Amendment to the Administrative Guidelines (Exhibit A) of the Intergovernmental Agreement Concerning the Joint Operation of the Fort Collins-Loveland Municipal Airport dated November 10, 2003, and that certain Second Amendment to the Intergovernmental Agreement for the Joint Operation of the Fort Collins- Loveland Municipal Airport dated May 15, 2007 (collectively referred to as the “Operating Agreement”); and WHEREAS, the Cities have approved a strategic plan for the operation of the Airport which includes protecting the Airport against residential encroachment, creating a sustainable business model for the Airport, encouraging immediate private investment in the Airport, revising the Airport governance structure and authority for the governing board, and rebranding the Airport and more productively engaging the public in Airport operation issues; and WHEREAS, as a part of the action items of the Strategic Plan, the Council has also determined that the proposed amended governance structure is in the best interests of the City and the Airport and that an amended and restated intergovernmental agreement between the cities of Fort Collins and Loveland should be entered into to reflect the cities’ desire to change the governance structure of the Airport and to delegate certain Airport duties and responsibilities in order to provide more effective and efficient Airport management and operations; and WHEREAS, the City Council has further determined that the Airport governance structure should be in the nature of a “commission” that pursues the development of the Airport as a regional airport in northern Colorado and that the commission should be named the “Northern Colorado Regional Airport Commission” in order to reflect the regional nature of the Airport’s character; and WHEREAS, pursuant to Section 29-1-203 of the Colorado Revised Statutes (and Article II, Section 16 of the 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 the Cities; and WHEREAS, the City Council has received a favorable recommendation for the proposed new governance structure from the Airport Steering Committee and from Airport staff and has - 2 - determined that the Amended and Restated Intergovernmental Agreement for the Fort Collins- Loveland Municipal Airport is in the best interests of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Amended and Restated Intergovernmental Agreement for the Joint Operation of the Fort Collins-Loveland Municipal Airport amending the governance structure for the Airport, attached hereto as Exhibit “A” and incorporated herein by this reference, is approved, and the Mayor is authorized to execute said Amended and Restated Intergovernmental Agreement together with such changes to the form of said agreement as the City Manager, in consultation with the City Attorney, determines to be necessary or appropriate to protect the interests of the City provided that such changes are materially consistent with the terms and conditions of this Resolution and the intended purpose of said agreement. The Amended and Restated Intergovernmental Agreement shall supersede and fully replace the Operating Agreement. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 6th day of January, A.D. 2015. _________________________________ Mayor ATTEST: _____________________________ City Clerk 1 AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT FOR THE JOINT OPERATION OF THE FORT COLLINS-LOVELAND MUNICIPAL AIRPORT THIS AGREEMENT is made and entered into this _____ day of , 2015, between THE CITY OF LOVELAND, COLORADO, a municipal corporation, and THE CITY OF FORT COLLINS, COLORADO, a municipal corporation, hereinafter collectively referred to as "Cities." W I T N E S S E T H : WHEREAS, in 1963, the Cities agreed to the establishment of a regional general aviation facility and became the owners and operators of the Fort Collins-Loveland Municipal Airport ("Airport") more specifically described as follows: Barnstorm First Addition to the City of Loveland, being a portion of Sections 20, 21, 28, 29 and 33, Township 6 North, Range 68 West of the 6th P.M., County of Larimer, State of Colorado. Barnstorm Second Addition to the City of Loveland, being a portion of Section 28 and Section 33, Township 6 North, Range 68 West of the 6th P.M. and a portion of Section 3 and Section 4, Township 5 North, Range 68 West of the 6th P.M., County of Larimer, State of Colorado; and WHEREAS, the Cities have heretofore entered into agreements addressing the ownership, operation and maintenance of the Airport dated July 3, 1979; September 1, 1981 (amended by Addendum dated December 19, 1989); January 9, 1991; December 21, 1993; June 18, 1996, and May 16, 2000 (amended by the First Amendment to the Administrative Guidelines (Exhibit A) of the Intergovernmental Agreement Concerning the Joint Operation of the Fort Collins-Loveland Municipal Airport dated November 10, 2003, and the Second Amendment to the Intergovernmental Agreement for the Joint Operation of the Fort Collins-Loveland Municipal Airport dated May 15, 2007); and WHEREAS, the Councils of the Cities have determined that the operation and maintenance of the Airport should be continued as a joint venture between the Cities; and WHEREAS, the Councils of the Cities have further determined that this amendment and restatement is necessary to reflect their desire to change the governance structure of the Airport and to delegate certain Airport duties and responsibilities in order to provide more effective and efficient Airport management and operation; and WHEREAS, the Councils of the Cities desire that the Airport governance structure be in the nature of a “commission” that pursues the development of the Fort Collins-Loveland Airport as a regional airport in Northern Colorado and that the commission should be named the “Northern Colorado Regional Airport Commission” to reflect the regional nature of the Airport’s character; and EXHIBIT B 2 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 the Cities if such contracts are approved by the Councils of the Cities; and WHEREAS, the purpose of this Agreement is to set forth fully the purposes, powers, rights, obligations and the responsibilities, financial and otherwise, of the contracting Cities. NOW, THEREFORE, IT IS AGREED by and between the parties hereto 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. “Policy issues” shall include, but shall not be limited to, the adoption of the master Airport plan, participation in federal and state grant agreements, purchases and sales of real property or structures, construction of capital projects, and approval of the annual contributions to the Airport budget, all of which shall require the approval of the City Councils. 2. Facility Management and Commission Appointments. A. Subject to the Policy Issues reserved to the City Councils set forth in Section 1 or as otherwise provided herein, Management authority over Airport operation and commercial, industrial or other operations and activities of any kind located on the Airport is vested in the Northern Colorado Regional Airport Commission (the “Commission”). The Commission shall elect a chairperson and vice chairperson from its members. Said officers shall perform the duties customary for said offices including: (i) the chairperson shall sign all contracts on behalf of the Commission, except contracts that may be signed by the Airport Manager as authorized by the Commission and shall perform such other duties as may be imposed by the Commission; and (ii) the vice chairperson shall perform all of the chairperson’s duties in the absence of the chairperson. B. The Commission shall be comprised of seven members as follows: (a) two members shall be appointed by the Loveland City Council which members shall be City of Loveland council members or employees; (b) two members shall be appointed by the Fort Collins City Council which members shall be City of Fort Collins council members or employees; (c) one Citizen Member (defined below) shall be appointed by the Loveland City Council; (d) one Citizen Member (defined below) shall be appointed by the Fort Collins City Council, and (e) one Joint Citizen Member (defined below) shall be appointed by the City Councils upon mutual agreement. A “Citizen Member” is defined as an individual residing within the Growth Management Area (“GMA”) of the City of the appointing City Council, or owning or leasing real property or operating a business within the Airport area of influence as defined in the Airport Master Plan; provided that such member shall not be an employee or city council member of the Cities. The 3 “Joint Citizen Member” is defined as an individual residing within the GMA of the either of the Cities, or owning or leasing real property or operating a business within the Airport area of influence as defined in the Airport Master Plan; provided that such member shall not be an employee or city council member of the Cities. Citizen Members shall serve a term of four years at the pleasure of the appointing City Council, subject to removal at any time without cause. The Joint Citizen Member shall serve a term of four years, subject to removal at any time without cause upon the mutual agreement of the City Councils. City Council members and employees of the Cities appointed as members of the Commission shall have no fixed term, but shall be subject to reappointment or removal at the pleasure of the appointing City Council. Appointments to fill vacancies by Citizen Members or the Joint Citizen Member shall be made for the remainder of the term and shall be filled by the appointing City Council, or, in the case of the Joint Citizen Member, by the mutual agreement of the City Councils. 3. Bylaws. The Commission shall adopt By-laws governing the responsibilities and duties of the Commission consistent with the terms and conditions of this Agreement. The By- laws and any amendments thereto shall be approved the City Councils before going into effect. 4. Commission Powers and Scope of Authority. The Cities do hereby delegate to the Commission the following powers and authority 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”) or other grant agreements, including without limitation any grant assurances set forth therein, and any other limitations set forth herein: A. Enter into Airport agreements, including Airport property leases and contracts for goods and services, provided that such agreements are in a form generally approved by the Cities; B. Authorize Airport activities; C. Adopt or revise Airport rules and regulations, including minimum standards; D. Develop budgets and propose capital projects; E. Establish Airport rates, fees and charges on an annual basis; F. Establish Airport service levels; G. Develop an Airport operating plan, including security and emergency plans; and H. 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 on order to make recommendation to the Loveland City Manager regarding employment matters involving the Airport Manager. 5. Provision of Administrative Services. It is agreed that the Cities shall provide Administrative Services to the Airport Operations. A. Such services shall include but shall not be limited to personnel, salary and benefits administration, legal services, accounting, budget preparation assistance, 4 engineering, risk management, purchasing and other similar administrative services; B. The City providing such services shall be entitled to recover, out of funds budgeted and appropriated for the Airport, its reasonable expenses incurred. The administrative charge shall be calculated in the same manner as charges made by the providing City to its own governmental enterprise funds; C. The City Managers shall maintain Administrative Guidelines which specify the duties and responsibilities of each City and any method or methods by which one City may enter into purchasing, consulting and other contracts pertaining to the Airport on behalf of both Cities. The Administrative Guidelines shall also specify, within the limits as set forth in subparagraph B above, the expenses which each City shall be entitled to recover for specific services provided. The Administrative Guidelines which have heretofore been developed are attached hereto as Exhibit "A" and incorporated herein by this reference. Modifications may be made to said Administrative Guidelines by mutual agreement of the City Managers in order to effect more efficient administration of the Airport. 6. Airport Manager, Appointment and Duties. The City Manager of the City of Loveland shall appoint an Airport Manager subject to the regulations and policies of the City of Loveland, after consultation with the City Manager of the City of Fort Collins and the Commission. The Airport Manager shall: A. Subject to the direction of the Commission, manage the operations of the Airport in a safe and efficient manner and maintain the grounds, structures and equipment in a clean, orderly, safe and operational condition in conformity with all applicable federal, state and local laws, rules and regulations and other legal requirements; B. Manage such operations in a manner which is compatible with the interests of the Cities, Commission and users of the Airport; C. Perform all duties normally associated with sound, safe, innovative, prudent and efficient Airport management and provide all services as are customary and usual to such an operation, including, but not limited to, the following: i. Maintenance and Repair Services. Maintain and repair (structurally and otherwise) in a good and skillful manner, and enforce the obligations of any tenant to maintain and repair in such manner: a. all runways, ramps and taxiways, runway and taxiway lights, markings and striping, navigation aides not maintained by the FAA; 5 b. vehicles, equipment, machinery and tools used in the operation, maintenance or repair of the Airport; c. Airport grounds including, without limitation, perimeter fences, parking lots, grass cutting and removing or topping trees and shrubs where and when necessary; and d. all Airport buildings and structures, including, without limitation, plumbing, electrical, sprinkler, heating and air conditioning systems, apparatus and equipment. ii. Aviation Support Functions. In a manner consistent with sound Airport operating and safety practices, perform or cause to be performed: a. operation of the fuel farm with due regard for the operational requirements of the suppliers of petroleum products at the Airport; b. operation of the ramp area adjacent to the terminal for the benefit of users thereof; c. expeditious removal of snow and ice from all runways, taxiways, ramps, parking lots and access roads; d. periodic visual checks to locate and remove all foreign objects from all runways, taxiways, ramps and aircraft parking areas. iii. Negotiations with Third Parties. a. In connection with the solicitation of proposals and negotiation of such leases, concessions and other agreements as may be necessary or desirable for the proper operation of the Airport in accordance with federal, state and local laws, rules and regulations and any grant agreements or related assurances, the Airport Manager shall prepare specific programs and courses of action and shall, at the direction of the Commission and on behalf of the Cities, implement such programs and courses of action in conformity with the same. b. Administer and monitor all agreements with Airport concessionaires, tenants and construction contractors, see full and complete compliance with the terms and conditions contained in such agreements, and endeavor to see that such agreements are carried out in a manner which is consistent with the proper operation of the Airport, provide coordination to avoid or minimize disruption of Airport operations and services and perform or cause 6 to be performed all obligations imposed on the Cities pursuant to such agreements. c. Subject to direction from the Commission and in conformance with applicable procurement requirements, procure such aviation and related services, equipment, materials and supplies as may be necessary for the proper operation and marketing of the Airport. D. Prepare the Airport Annual Operating Budget in time to submit said budget and plan to the Commission and the City of Loveland for approval and to submit the annual request for Airport budget contributions through both Cities' annual budget processes for approval, and concurrently provide a copy of the Airport Annual Operating Budget to the City of Fort Collins, for information purposes. The Annual Operating Budget shall itemize all anticipated revenues and operating expenses and shall support such items of revenue and expense with records and documents. E. In conjunction with the Airport Annual Operating Budget, prepare an Annual Operating Plan which shall include, but not be limited to: a maintenance and repair schedule; a schedule of proposed Airport fees; a list of all aviation and aviation-related concessionaires, contractors and tenants; a schedule of all leases, concessions, contracts and agreements to be negotiated or renegotiated; recommendations, if any, for revisions of the Emergency Contingency Plan, Airport Rules and Regulations, Noise Reduction Plan, Community Information Plan and the Airport Security Plan; recommendations, if any, for non-capital equipment; a five-year projection of anticipated revenues and expenses based on a comparison with the previous fiscal year and prepared with reference to other relevant data; a schedule of proposed staffing levels of full-time, part-time and seasonal employees and any factors which may affect Airport operation and management. Appropriate modification of the Airport Operating Plan shall be made as required to conform to the Airport Operating Budget as adopted or amended. F. Prepare and submit to the Commission and the Cities a written five-year Capital Improvement Plan for 2015 and each year thereafter as may be necessary in accordance with Paragraph 10 of this Agreement. Such Capital Improvement Plan shall include, but not be limited to, an appropriate construction schedule for each project; a projection of the total and annual cost of each project; evaluation of the availability of federal, state or private financing options such as build/own/operate/manage and turnkey, for each such project on the Airport Master Plan and on Airport operations, preliminary data to provide order of magnitude cost estimates for each project; and a statement of all major actions required to implement each such project. 7 7. Airport Funding. Each City acknowledges that ongoing funding for proper maintenance and capital development of the Airport will be necessary and each City agrees to review any request for funds from the Commission during its respective Annual Budget process. A. The Cities agree to continue the practice of sharing equally in the revenues and expenses arising from Airport operations. If financially feasible, each City shall appropriate necessary funds for capital items, i.e., to maintain the facility, build additional facilities, and match any grants for Airport Improvement Program Projects funded by the FAA. B. Financial contributions to the Annual Operating Budget and the implementation of the Capital Improvement Plan shall be shared equally between the Cities, except that each party reserves the right to invest additional funds in the Airport as it sees fit. C. Improvements to the real property as well as any personal property resulting from such single party investments shall be and remain an asset of the investor. However, single party investments shall have no effect of the percentages of ownership in the Airport as presently divided between the Cities. D. Each City's equal share of the Annual Operating Budget and the Capital Improvement Plan shall be appropriated by each City and transferred or otherwise paid into the designated account to be used for Airport funding on an annual basis by the City providing finance and accounting administrative services for the enduring budget year. E. It is understood and agreed that the City providing finance and accounting administrative services for the Airport may collect, hold, invest and disburse funds belonging to the other City (whether such funds are revenues from the Airport or financial contributions made by such other City or other funds belonging to such other City) only as an agent of such other City, and subject to the general duties and responsibilities of an agency relationship. Accordingly, the City providing such services shall, with respect to such funds of the other City, be under the control of the Financial Officer of such other City and shall make monthly reports to such Financial Officer, which reports shall contain a detailed accounting of all such funds collected, held, invested and disbursed by the City providing such services for the period of time covered by such report. 8. Effective Date. This Agreement shall become effective on the date first listed above. 9. Effect Upon Prior Agreements. This Agreement shall: A. extinguish and replace the intergovernmental agreements related to operation and management of the Airport entitled Joint Operating Agreement for the Fort Collins-Loveland Municipal Airport dated July 3, 1979; Agreement dated 8 September 1, 1981, and its Addendum to Agreement dated December 19, 1989; Inter-governmental Agreement for the Joint Operation of the Fort Collins- Loveland Municipal Airport dated January 9, 1991; Intergovernmental Agreement for the Joint Operation of the Fort Collins-Loveland Municipal Airport dated December 21, 1993; Intergovernmental Agreement for the Joint Operation of the Fort Collins-Loveland Municipal Airport dated June 18, 1996; and Intergovernmental Agreement for the Joint Operation of the Fort Collins- Loveland Municipal Airport dated May 16, 2000 (amended by the First Amendment to the Administrative Guidelines (Exhibit A) of the Intergovernmental Agreement Concerning the Joint Operation of the Fort Collins- Loveland Municipal Airport dated November 10, 2003, and the Second Amendment to the Intergovernmental Agreement for the Joint Operation of the Fort Collins-Loveland Municipal Airport dated May 15, 2007); and B. not abrogate or otherwise nullify the terms and conditions of the Intergovernmental Agreement dated June 19, 1992, concerning the Airport fire station, which agreement shall be considered an amendment to the provisions of this Agreement should the provisions conflict. 10. Term, Modifications, Extensions. This Agreement shall remain in full force and effect until December 31, 2015, unless earlier terminated by mutual written agreement of the parties hereto. This Agreement may be modified only by the written agreement of the parties hereto. This Agreement may be extended (a) by written agreement of the parties or (b) automatically for successive one year periods by virtue of each City, in its respective annual budgets, having appropriated funds to support the annual operating budget for the Airport for the ensuing budget year in accordance with the provisions of Paragraph 7 of this Agreement. 11. Indemnity. To the extent authorized by law, each party shall indemnify, save and hold harmless the other party, its boards, employees, officers and agents, against any and all claims, damages, liability and court awards, including costs, expenses and attorney's fees, incurred as a result of any act or omission by that party or its officers, agents, employees, subcontractors pursuant to the terms of this Agreement. 12. Ownership of Land and Facilities. Except for single City purchases which shall become vested in the purchasing City in accordance with the provisions of Paragraph 7, ownership of the real and personal property, buildings, structures and facilities located on the Airport shall be divided according to the date of acquisition as follows: A. Real property, improvements and personal property acquired prior to July 3, 1979, as described on Exhibits "B" and "C" attached hereto and made a part hereof, or as established by extrinsic evidence shall be deemed to be vested in both Cities according to the following proportions: 1. An undivided one-third (1/3) interest to the City of Loveland; and 2. An undivided two-thirds (2/3) interest to the City of Fort Collins. 9 B. Real property, improvements and personal property acquired on or after July 3, 1979, as well as any appreciation in value accruing to such properties or the properties described in Paragraph A above, shall be deemed to be vested in both Cities according to the following proportions: 1. An undivided one-half (1/2) interest to the City of Loveland; and 2. An undivided one-half (1/2) interest to the City of Fort Collins. C. In the event either party does not pay its one-half (1/2) share of agreed expenses in any given year, such City shall relinquish in each such year in which it shall fail to apply such expenses, all right, title and interest in and to ten percent (10%) of its total ownership interest in real and personal property at the Airport and shall convey the same to the other City. 13. Non-multiple year fiscal obligation. Nothing in this Agreement shall be construed to create a multiple fiscal year direct or indirect financial obligation of or on behalf of any party to this Agreement. 14. Non-liability of Individuals. No officer, agent or employee of either party hereto shall be charged personally or held contractually liable by or to the other party under any term or provision of this Agreement or of any supplement, modification or amendment to this Agreement because of any breach thereof, or because of his, her or their execution or attempted execution of the same. 15. Benefits. This Agreement is made for the sole and exclusive benefit of the Cities, their successors and assigns, and is not made for the benefit of any third party. 16. Relationship of Parties. The parties enter into this Agreement as separate, independent governmental entities and maintain such status throughout. 17. No Assignment. The parties covenant and agree that they will not assign this Agreement, any interest or part thereof or any right or privilege pertinent thereto, without written consent of the other party first having been obtained. 18. Entire Agreement/Ambiguities. This Agreement embodies the entire agreement of the parties. The parties shall not be bound by or be liable for any statement, representation, promise, inducement or understanding of any kind or nature not set forth herein. No changes, amendments or modifications of any of the terms or conditions of this Agreement shall be valid unless reduced to writing and executed by both parties. In the event of any ambiguity in any of the terms of this Agreement, it shall not be construed for or against any party hereto on the basis that such party did or did not author the same. 19. Applicable Law, Severability, Arbitration. The laws of the State of Colorado shall be applied in the interpretation, execution and enforcement of this Agreement. Any provision rendered null and void by operation of law shall not invalidate the remainder of this Agreement to the extent that this Agreement is capable of execution. The parties agree to submit 10 any dispute over the interpretation or application of this Agreement to final and binding arbitration with the Judicial Arbiter Group of Denver, Colorado. The cost of arbitration shall be borne equally by the parties unless the arbitrator shall find that a claim or defense is frivolous and without reasonable justification. [End of page.] 11 IN WITNESS HEREOF, this Intergovernmental Agreement has been executed that day and year first above written. THE CITY OF LOVELAND, COLORADO A Municipal Corporation By: __________________________ Mayor ATTEST: ______________________ City Clerk APPROVED AS TO FORM: ______________________ City Attorney THE CITY OF FORT COLLINS, COLORADO A Municipal Corporation By: ______________________________ Mayor ATTEST: ______________________ City Clerk APPROVED AS TO FORM: ______________________ City Attorney 12 EXHIBIT “A” Administrative Guidelines (Services Provided by the City of Loveland) All services described below are to be provided by the City of Loveland, except as otherwise specifically noted. Legal Services The City Attorney’s office will provide legal services to the Airport. In the event that it is necessary to use the services of outside counsel, the cost incurred would be included in charges to the Airport. Accounting and Purchasing Accounting will maintain financial records for the Airport in a separate accounting fund. Services provided will include monthly reports, accounts payable, payroll processing, processing and payment of purchase orders, and preparation of work papers for the annual audit. Performance of the annual audit would be included as an item in City’s bid for audit services. Personnel and Benefits Administration The Employee Relations Department will maintain employment records, assist in recruiting, disciplinary action and discharge of employees; assist with classification and compensation of employees; administer claims and benefits plans; and provide training programs for Airport employees. Participation of Airport employees in training programs will be on the same basis as for employees of the City of Loveland. There is no cost except for those programs for which there is an additional cost for City employees. All Airport employees shall be subject to the employee regulations and policies of the City of Loveland. Engineering Engineering will provide consultation on routine pavement management issues, bidding and administration of pavement maintenance contracts. Facilities Maintenance Facilities Maintenance can assist in establishing preventive maintenance schedules for the terminal and other buildings, and providing consultation on facilities maintenance issues. 13 General Administration Environmental services including storm water discharge permitting and regulatory compliance, can be provided through civil engineers, environmental resource assistances, industrial pretreatment coordinators and other professionals, . Street Sweeping Parking lot and other sweeping is available. Security Security services which are outside the scope of the duty of the Loveland Police Department can be provided by off-duty officers, when available. Risk and Insurance The City of Loveland shall maintain liability coverage for the Airport. Risk management services related to this coverage will include claims administration; implementation of incident reporting to track and monitor problem areas; periodic meetings with the Airport manager to review the incident reports; and periodic safety inspections of the premises. The City of Fort Collins shall maintain property coverage. Risk management services related to this coverage will include assistance with claims administration, periodic meetings with the airport manager, and other services as requested. There will be no charge for these services. The Airport Annual Operating Budget provides for insurance deductibles. If the insurance that has been purchased includes a higher deductible amount, the cities of Loveland and Fort Collins will share equally in the difference between the budgeted deductible, and the lesser of the amount of the claims and deductible amount provided for in the insurance policy. Such amount will be paid from each City's risk pool, and will not be charged to the Airport’s Annual Operating Budget. 14 EXHIBIT “B” Legal Description [pdf to be attached] 15 EXHIBIT “C” Property/Equipment will benefit the Airport’s future. Rebranding will support Airport marketing and more clearly express the Airport to the public. Gino Campana, Fort Collins Dave Clark, Loveland Ross Cunniff, Fort Collins Phil Farley, Loveland John Fogle, Loveland Mayor Cecil Gutierrez, Loveland Gerry Horak, Fort Collins Troy Krenning, Loveland Hugh McKean, Loveland Bob Overbeck, Fort Collins Lisa Poppaw, Fort Collins Joan Shaffer, Loveland Darin Atteberry Mike Beckstead Josh Birks Curt Burgener Bill Cahill Tom Dwyer Betsey Hale Jay Hardy Robert Hau Jerry Helgeson Annette Gilbert Cecil Gutierrez Stacy Johnson SeonAh Kendall Jason Kopp Jason Licon Martin Lind Stu MacMillian Deb Montgomery Malachi O’Neill Jim Parke Troy Peterson Curt Richardson Rich Shannon Ralph Trenary Karen Weitkunat Chauncey Taylor, Loveland Ralph Trenary, Loveland Wade Troxell, Fort Collins Mayor Karen Weitkunat, Fort Collins Jason Licon, Airport Director 1. Involve the two Cities and Larimer County in developing a new IGA for land development within the airport influence area. 1. Develop 10-year financial model for financial sustainability. 2. Clarify the Airport’s market and potential. 3. Resolve issues with through the fence agreements, both existing and future. 1. Encourage creation of an innovative aviation cluster through public private partnership. 2. Develop and issue request for airport development proposals. 3. Pursue a Charter Flight Service or Airline Guarantee program. 1. Create a new governance structure for approval by Cities 2. Adopt all necessary changes in an updated IGA for the Airport. 3. Encourage participation by stakeholders and the public. 1. Rebrand the Airport to create an enhanced regional identity. 2. Build stronger Airport public information program. AIRPORT MISSION The Fort Collins-Loveland (FNL) Airport will be Colorado’s premier regional airport supporting general aviation, regional air carrier services, and business opportunities for both aviation and non-aviation uses. The Airport is the front door and first impression to visitors of Fort Collins, Loveland, and Larimer County, and will reflect the regional values and vision of the communities it serves. The Airport will have an impressive gateway, compelling signage, and advertising to the 3 million travelers on I-25. The Airport will host a thriving general aviation community. The Airport has a clear, compelling role in our region and plays a critical role in our region’s economic health. Fort Collins and Loveland are aligned in attracting new enterprises that build upon Airport resources. The Airport will be part of an active multi-modal system that integrates air, highway, and rail transportation. The Airport has excellent physical facilities and infrastructure, a high quality fuel service provider with hanger facilities and exceptional service, and an excellent scheduled air service supporting over 10,000 enplanements per year. The Airport has facilities that service aircraft with turbine maintenance services, a quality restaurant, and an air museum. The Airport has based aircraft manufacturers attracting high quality jobs to the region. VISION FOR THE AIRPORT