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HomeMy WebLinkAbout08263 ORDINANCE NO. 8263 AN ORDINANCE ACCEPTING A FEDERAL AVIATION ADMINISTRATION (FAA) GRANT AGREEMENT PROJECT NO. 3-08-0046-30 FOR FUNDS IN THE AMOUNT OF $8,510,477 FOR THE CONSTRUCTION OF A NEW TRAINING RUNWAY, ESTABLISHING CAPITAL PROJECT NO. AP1003, TRAINING RUNWAY, AND BUDGETING AND APPROPRIATING $8,949,951 TO CAPITAL PROJECT NO. AP1003 WHEREAS, the City of Pueblo has received a Grant Agreement from the United States of America Federal Aviation Administration to fund the construction of a new training runway at Pueblo Memorial Airport; and WHEREAS, a Colorado Department of Transportation-Aeronautics Division Grant was accepted by the City of Pueblo on May 10, 2010 to assist the City with the matching funds for this project; and WHEREAS, Capital Project No. AP1003, Training Runway, needs to be established and funds budgeted and appropriated; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Grant Agreement between the City of Pueblo, a Municipal Corporation, and the United States of America Federal Aviation Administration making available federal funds in the amount of $8,510,477 for the construction of a new training runway at Pueblo Memorial Airport is hereby accepted and approved, and Resolution No. 11944 of the City Council is hereby ratified. SECTION 2. Capital Project No. AP1003, Training Runway, is hereby established. SECTION 3. Funds are hereby budgeted and appropriated to Capital Project AP1003 from the Federal Aviation Administration grant in the amount of $8,510,477 and from the Colorado Department of Transportation-Aeronautics Division grant in the amount of $219,737 and from the 2010 Capital Improvement fund in the amount of $219,737. INTRODUCED: September 13, 2010 BY: Judy Weaver COUNCILPERSON PASSED AND APPROVED: September 27, 2010 Background Paper for Proposed O RDINANCE DATE: # R-2 September 13, 2010 AGENDA ITEM DEPARTMENT: DEPARTMENT OFAVIATION MARK LOVIN, DIRECTOR TITLE AN ORDINANCE ACCEPTING A FEDERAL AVIATION ADMINISTRATION (FAA) GRANT AGREEMENT PROJECT NO. 3-08-0046-30 FOR FUNDS IN THE AMOUNT OF $8,510,477 FOR THE CONSTRUCTION OF A NEW TRAINING RUNWAY, ESTABLISHING CAPITAL PROJECT NO. AP1003, TRAINING RUNWAY, AND BUDGETING AND APPROPRIATING $8,949,951 TO CAPITAL PROJECT NO. AP1003 ISSUE Should City Council accept a grant from the FAA to construct a new training runway, establish a Capital Project for the runway construction, and budget and appropriate funds for this project. RECOMMENDATION Approval of this Ordinance. BACKGROUND The FAA has determined that the current training runway is unsafe due to it’s proximity to the ramp and they have issued a grant to fund 95% of the project costs to construct a new training runway and associated taxiways. Based upon the date of the FAA award and the need to accept this grant within a very short period of time, City Council previously passed Resolution No. 11944 accepting the award and approving the grant agreement; this Ordinance ratifies that action in order to comply with § 3-8 of the Charter. This ordinance also appropriates the grant funding for the project. FINANCIAL IMPACT The FAA has issued a grant to the City for $8,510,477. The State issued a grant to the City in April 2010 for $219,737 to cover half of the City’s 5% matching funds. The City’s local match of $219,737 has been budgeted in the 2010 Capital Improvement Fund. The State’s funding and the City’s budgeted funds were based on an FAA estimated grant of $8,350,000.