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HomeMy WebLinkAbout09152 ORDINANCE NO. 9152 AN ORDINANCE AUTHORIZING THE TRANSFER AND APPROPRIATION OF $40,000.00 FROM THE AIRPORT IMPROVEMENT TRUST FUND TO THE 2017 AIRPORT BUDGET FOR THE PURPOSE OF PURCHASING EQUIPMENT FROM THE DENVER INTERNATIONAL AIRPORT SURPLUS SALE WHEREAS, the Denver International Airport is offering surplus equipment for purchase to airports within the State of Colorado; and WHEREAS, the Pueblo Memorial Airport would like to purchase a grader from this surplus sale; and WHEREAS, the FAA has determined that this equipment is an acceptable use of land sale revenues; NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Funds in the amount of $40,000.00 are hereby authorized to be transferred from the Airport Improvement Trust Fund to the 2017 Airport Fund. SECTION 2. Said funds are hereby budgeted and appropriated for the purchase of surplus equipment for the Airport. Funds that are reimbursed, or not used, will be returned to the Airport Improvement Trust Fund. SECTION 3. 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. SECTION 4. This Ordinance shall become effective immediately upon final passage and approval. INTRODUCED July 24, 2017 BY: Ed Brown PASSED AND APPROVED: August 14, 2017_____ City Clerk’s Office Item # R-3 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: July 24, 2017 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 AND APPROPRIATION OF $40,000.00 FROM THE AIRPORT IMPROVEMENT TRUST FUND TO THE 2017 AIRPORT BUDGET FOR THE PURPOSE OF PURCHASING EQUIPMENT FROM THE DENVER INTERNATIONAL AIRPORT SURPLUS SALE SUMMARY: This Ordinance approves the transfer and appropriation of $40,000.00 from the Airport Improvement Trust Fund to the 2017 Airport Budget and allows utilization of these funds for the purchase of equipment from the Denver International Airport surplus sale. Any unused funds, or reimbursed funds, will be returned to the Airport Improvement Trust Fund. PREVIOUS COUNCIL ACTION: None. 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 has agreed that the purchase of airport dedicated equipment is an allowable expenditure for these funds. The Denver International Airport has equipment that they are offering to all Colorado airports for purchase. For sale is a grader for $40,000.00, which has been identified as a possible replacement to the airport’s current 1974 John Deere grader. It is not guaranteed that the airport will be able to purchase this equipment, as the other airports in the State have similar needs and will be competing for the equipment. The purchase of this equipment has been identified as a need in two primary areas. First, FAA Certification Inspections in 2015 and 2016 recommended replacing and expanding snow removal equipment. A grader is an important part of this equipment. Secondly, a grader assists the airport in meeting FAA requirements under 14 CFR Part 139.333, Protection of Navigational Aids, by maintaining access to those navigational aids located on the airport. FINANCIAL IMPLICATIONS: Funds in the amount of $40,000.00 will be transferred from the Airport Improvement Trust Fund into the 2017 Airport Fund. The State Aeronautics Division is offering a reimbursement of up to eighty percent (80%) on an airport’s first piece of equipment. If the airport is successful in purchasing the equipment, the final cost to the City will be $8,000.00 to $10,000.00. Funds that are reimbursed, or not used, will be returned to the Airport Improvement Trust Fund. BOARD/COMMISSION RECOMMENDATION: None. STAKEHOLDER PROCESS: None. ALTERNATIVES: If the funds are not transferred, the equipment will not be purchased. RECOMMENDATION The Department of Aviation recommends the transfer of the funds. Attachments: FAA Approval Correspondence