TO: Mayor and Members of City Council
THRU: Barbara Hill, Interim Assistant City Manager
FROM: Bradley S. Whited, Airport Director
Tracey Broyles, Budget and Evaluation Director
DATE: November 26, 2018
RE:
Title
Adopt Budget Ordinance Amendment 2019-6 and Capital Project Ordinance 2019-20 to Appropriate Funding for Initial Phases of the Part II Terminal Improvement Project
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal IV: Fayetteville will be a highly desirable place to live, work, and recreate with thriving neighborhoods and a high quality of life for all residents.
• Objective D: To develop and maintain public transportation investments with high quality transit and airport services.
Executive Summary:
Council is asked to adopt Budget Ordinance Amendment (BOA) 2019-6 and Capital Project Ordinance (CPO) 2019-20 to appropriate $700,000 to begin Part II of the Airline Terminal Improvement Project. The source of funds for the project is an appropriation of Airport Operating Fund net assets (fund balance).
Background:
As Part I of the Terminal Improvement Project is moving through construction, it is time to prepare for Part II of the project. The FAA is planning to fund the second $10 million of discretionary funding in August, 2019.
The initial design for the Part II improvements was previously completed, however, based upon the construction costs for Part I of the project, cost estimates for Part II will require update. If funding gaps are identified, staff will work with the architects and engineers to value engineer the remaining components and/or seek additional funding sources.
Prior Council actions related to Part I of the Terminal Improvement Project are as follows:
• City Council approved conceptual terminal design June 22, 2015
• Gordon Johnson briefed City Council on design progress February 22, 2016
• City Council approve pre-qualifications process April 11, 2016
• City Council accepted FAA Grant #44 on August 22, 2016
• City Council accepted FAA Grant #45, approved CPO 2018-20, authorized the Mayor to sign the NCDOT Aviation Grant with received and authorized the City Manager to execute the Resolute Building Company contract for construction of Terminal Improvement Part I on August 28, 2017
• City Council adopted BOA 2019-2 and CPOA 2019-17 to fund the replacement of two additional passenger boarding bridges with the renovation project and authorized the City Manager to amend Resolute Building Company’s contract on August 13, 2018
Issues/Analysis:
While these project expenditures are initially recommended to be funded entirely by local funds, the costs are expected to be eligible for partial reimbursement through future grants. As grant funds are identified and approved by Federal and State grantor agencies, amendments of the project appropriation will be brought to Council for adoption.
Budget Impact:
There is no impact to the General Fund as the project funding is being provided from Airport Operating Fund net assets (fund balance).
Options:
• Adopt Budget Ordinance Amendment 2019-6 and Capital Project Ordinance 2019-20 to appropriate funding for the initial phases of the Part II Terminal Improvement Project.
• Do not adopt the budget ordinance amendment or capital project ordinance and provide further direction to staff.
Recommended Action:
Staff recommends that Council move to adopt Budget Ordinance Amendment 2019-6 and Capital Project Ordinance 2019-20 as presented.
Attachments:
Budget Ordinance Amendment 2019-6
Capital Project Ordinance 2019-20