Title
Ordinance No. 18-67 amending Ordinance No. 17-116 (2018 Appropriation Ordinance) for a supplemental appropriation to the Airport Grants Fund in the amount of $13,500,000 for the Rehabilitation of Taxiway G project at the Colorado Springs Airport and to the Airport Capital Improvement Program Fund in the amount of $1,215,000 for a transfer into the Airport Grants Fund for grant match
From:
Greg Phillips, Director of Aviation
Summary:
The attached ordinance is a supplemental appropriation to the Colorado Springs Airport (Airport) Grants Fund in the amount of $13,500,000 for the third phase of the Taxiway G rehabilitation project, along with a related supplemental appropriation to the Airport Capital Improvement Program (CIP) Fund in the amount of $1,215,000 for grant match that will be transferred from an Airport SIB loan which is currently held in escrow. This phase of the project includes the rehabilitation of Taxiway G from Taxiway P through Taxiway C. In coordination with the Federal Aviation Administration (FAA), additional unplanned discretionary money is being made available for COS in late 2018 that the Airport may utilize for this project.
Previous Council Action:
On December 12, 2017, City Council approved the 2018 Budget per Ordinance No. 17-116, which included the appropriation for the Airport Grants Fund in the amount of $14,283,328 and the Airport CIP Fund in the amount of $9,665,000.
Background:
This phase of the project is anticipated to include full reconstruction of Taxiway G from Taxiway P through Taxiway C. This section of Taxiway G was constructed in 1992 and is a 75-foot wide taxiway consisting of PCC pavement with 25-foot wide PCC shoulders. This section of pavement is experiencing moderate to severe distresses, mostly in the form of surface map cracking, longitudinal and corner cracking and spalling creating Foreign Object Debris (FOD). No sub drain system was installed in the initial construction which is now an FAA requirement under Advisory Circular (AC) 150/5300-13A, the lack of which may have contributed to the deterioration of the taxiway. With this deterioration, additional maintenance and repair costs have increased on the taxiway to mitigate the possibility of FOD. An additional issue, Alkali Silica Reactivity (ASR), has also been previously identified on portions of PCC pavements at Airport and will be addressed in this project.
This project includes the full depth removal of the existing pavement section and the replacement with a new PCC. Existing PCC shoulders will be removed and replaced with asphalt. A new edge drain will be installed as part of the pavement section, and existing taxiway edge lights will be replaced.
This project is part of the Airport’s 2019 Capital Improvement Program (CIP) and is eligible for federal funds under the Airport Improvement Program (AIP) managed by the Federal Aviation Administration (FAA). By accepting these additional discretionary funds in 2018, the Airport’s 2019 entitlement funds can then be used for the potential design and construction of a critical project to develop a new deicing pad located near the end of Runway 35R.
Financial Implications:
The supplemental appropriation increases the 2018 Airport Grants Fund revenue and expenditure budgets by $13,500,000. The sources of funds are a grant from the FAA for 90% of the cost, and a grant from CDOT for an additional 1% of the cost, and Airport Enterprise funds will cover the remaining 9%. A supplemental appropriation increasing the revenue and expenditure budgets of the Airport CIP Fund is also needed in the amount of $1,215,000 to cover the transfer to the Airport Grants Fund for the local grant match.
The FAA has indicated that there will be sufficient grant funds available to fund 90% ($12,150,000) of the total project cost based on bid results. The source of funds for the remaining 1% ($135,000) of the project cost will come from a Colorado Department of Transportation (CDOT) grant to the Airport and 9% will come from an SIB Loan, for which proceeds will be put into the Airport CIP Fund.
Without the supplemental appropriation, the Airport will not be able to accept the additional discretionary money which would push the project to 2019, thus increasing the project’s total cost and adversely impacting airline operations at the Airport. This would also cause the Airport to be unable to construct a new deicing pad to benefit the airlines.
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.
The City Council Budget Committee has reviewed and recommended this supplemental appropriation request at the meeting on May 8, 2018.
Alternatives:
Without a supplemental appropriation, the Airport will not be able to complete the project defined here 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.
Proposed Motion:
Move to approve the attached ordinance amending Ordinance No. 17-116 (2018 Appropriation Ordinance) for a supplemental appropriation to the Airport Grants Fund in the amount of $13,500,000 for the Rehabilitation of Taxiway G project at the Colorado Springs Airport and to the Airport Capital Improvement Program Fund in the amount of $1,215,000 for a transfer into the Airport Grants Fund for grant match
Ordinance Language:
An ordinance amending Ordinance No. 17-116 (2018 Appropriation Ordinance) for a supplemental appropriation to the Airport Grants Fund in the amount of $13,500,000 for the Rehabilitation of Taxiway G project at the Colorado Springs Airport and to the Airport Capital Improvement Program Fund in the amount of $1,215,000 for a transfer into the Airport Grants Fund for grant match