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HomeMy WebLinkAbout09081 ORDINANCE NO. 9081 AN ORDINANCE AUTHORIZING THE TRANSFER OF $36,938.00 FROM THE 2016 AIRPORT BUDGET TO THE AIRPORT IMPROVEMENT TRUST FUND DUE TO THE RETURN OF PAINTING EQUIPMENT WHEREAS, the FAA approved the use of land sale revenues to purchase painting equipment for the Airport; and WHEREAS, the painting equipment was returned to the manufacturer and the funds are to be returned to the Airport Improvement Trust Fund; now, therefore BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Funds in the amount of $36,938.00 are hereby authorized to be transferred from the 2016 Airport Fund to the Airport Improvement Trust Fund. SECTION 2. The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Ordinance to effectuate the policies and procedures described therein. SECTION3 This Ordinance shall become effective immediately upon final passage and approval. INTRODUCED: December 12, 2016 BY: Ed Brown PASSED AND APPROVED: December 27, 2016 City Clerk’s Office Item # R-5 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: December 12, 2016 TO: President Stephen G. Nawrocki and Members of City Council CC: Sam Azad, City Manager VIA: Gina Dutcher, City Clerk FROM: Ian Turner, Director of Aviation SUBJECT: AN ORDINANCE AUTHORIZING THE TRANSFER OF $36,938.00 FROM THE 2016 AIRPORT BUDGET TO THE AIRPORT IMPROVEMENT TRUST FUND DUE TO THE RETURN OF PAINTING EQUIPMENT SUMMARY: This Ordinance approves the transfer of $36,938 from the 2016 Airport Budget to the Airport Improvement Trust Fund due to previously purchased painting equipment being returned to the manufacturer. PREVIOUS COUNCIL ACTION: Ordinance No. 8994 was passed and approved on June 13, 2016 authorizing the transfer of $36,938 from the Airport Improvement Trust Fund to the 2016 Airport fund for the purchase of painting equipment. BACKGROUND Land that was deeded to the City of Pueblo as part of the transfer of the airport to the City is heavily regulated by the FAA. When land is released for sale, the funds must be held in a separate account. The funds can only be used for specific FAA approved expenditures. The FAA approved the purchase of painting equipment in calendar year 2016. However, once the equipment was obtained, it did not paint properly. After working with the manufacturer and having no success, the painting machine was returned. Since the funds were not expended for the FAA approved purpose, they must be returned to the Airport Improvement Trust Fund for future approved expenditures. The need for this painting equipment was recently noted during the FAA Part 139 certification inspection completed earlier this year. The FAA has agreed that these funds may be used to purchase this equipment. This need will be addressed in 2017. FINANCIAL IMPLICATIONS: Funds in the amount of $36,938 will be transferred from the 2016 Airport Fund into the Airport Improvement Trust Fund. BOARD/COMMISSION RECOMMENDATION: None. STAKEHOLDER PROCESS: None. ALTERNATIVES: If these funds are not transferred now, then, in the future, the Airport Improvement Trust Fund will need to be replenished using an unknown funding source. RECOMMENDATION The Department of Aviation recommends the transfer of the funds. Attachments: Ordinance No. 8994