Title
Ordinance No. 15-40 amending Ordinance No. 14-101 (2015 Appropriation Ordinance) for a $2,000,000 Supplemental Appropriation increasing revenue and expenditure in the Airport Capital Improvement Fund for the Airport Terminal Apron and Trench Drain System Reconstruction project.
Body
From:
Dan Gallagher, Aviation Director, Airport
Summary:
The Airport requests an additional revenue and expenditure appropriation in the amount of $2,000,000 for the Airport Terminal Apron and Trench Drain System Reconstruction project in order to receive additional grant funds available from the Federal Aviation Administration under the Airport Improvement Program.
Previous Council Action:
On December 9, 2014, City Council approved Ordinance No. 14-101 (2015 Appropriation Ordinance), which included an appropriation of $11,087,000 to the Airport Capital Improvement (CIP) Fund for the Reconstruction of the Terminal Apron and Trench Drain System.
Background:
The Airport Terminal Apron and Trench Drain System Reconstruction project consists of the complete pavement reconstruction of approximately 2,030 feet of air carrier ramp edge taxilane and shoulders, with a 150-180 full-depth panel removal and replacement, partial reconstruction of the trench drain system, and the re-striping of ramp pavement markings. The project also includes the removal and replacement of joint sealants and corner distress repairs at the joint intersections. This project is part of the Airport’s 2015 Capital Improvement Program and is eligible for federal funds under the Airport Improvement Program (AIP) managed by the Federal Aviation Administration (FAA).
The project was released to the public for bids on April 23, 2015. The FAA awards AIP grants based on bid results. Bids were received May 19, 2015, which included multiple phases of work. The bid results exceed the amount of FAA AIP funding that was appropriated in Ordinance No. 14-101. The FAA has indicated that there may be sufficient grant funds available to fund 90% of the total project cost based on the bid results. The source of funds for the remaining 10% of the project cost will come from a Colorado Department of Transportation (CDOT) grant to the Airport and Passenger Facility Charges.
The supplemental appropriation will allow the Airport to compete for grant funding to complete the entire project in one phase, minimizing operational impacts to airlines operating at the Airport.
Financial Implications:
Without the supplemental appropriation, the Airport can only complete a portion of this project, inevitably increasing the project’s total cost and adversely impacting airline operations at the Airport.
Board/Commission Recommendation:
Capital improvement projects are presented to the Airport Advisory Commission as they are developed and ongoing status reports are provided as the project progresses.
Stakeholder Process:
The Airport is an enterprise fund that obtains capital funding from FAA grants, state grants, Passenger Facility Charges, Customer Facility Charges, and the Airport Capital Improvement Fund. The FAA, CDOT and the signatory airlines have been briefed on and approve of our Capital Improvement Program.
Alternatives:
Without a supplemental appropriation, the Airport will not be able to complete the full scope of work and may risk losing an opportunity to receive FAA grant funding. The project’s total cost may also increase and airlines operating at the Airport may be adversely affected.
Recommended Action
Proposed Motion:
Move to approve an Ordinance amending Ordinance No. 14-101 (2015 Appropriation Ordinance) for a $2,000,000 Supplemental Appropriation increasing revenue and expenditure in the Airport Capital Improvement Fund for the Airport Terminal Apron and Trench Drain System Reconstruction project.
Ordinance Language
An Ordinance amending Ordinance No. 14-101 (2015 Appropriation Ordinance) for a $2,000,000 Supplemental Appropriation increasing revenue and expenditure in the Airport Capital Improvement Fund for the Airport Terminal Apron and Trench Drain System Reconstruction project.