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Runway 18/36 Extension Project CITY OF DUBUQUE, IOWA MEMORANDUM December 2, 1999 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Runway 18/36 Extension Project The Fiscal Year 2000-2004 CIP included a project for lighting and paving a 1,423 foot extension of Runway 18/36 and construction of a parallel taxiway along the new runway in Fiscal Year 2001. A second phase of this project was budgeted in Fiscal Year 2002 and provided for paving and lighting the existing 4,900 feet of Runway 18/36 and rehabilitation of Taxiway Charlie. Airport Manager Ken Kraemer was contacted by the FAA regarding these projects and was told that the FAA is prepared to fund the entire project in the current federal fiscal year if the City is prepared to commit to its local share of 10 percent. The cost estimates for the projects were updated to $2,700,000 and $3,950,000. Based on the City undertaking both projects in Fiscal Year 2001, the consulting engineer estimates that there would be a savings of approximately $100,000 in total with City funding requirements being reduced by $10,000. I respectfully request that the Mayor and City Council approve commitment of $280,000 in DRA distributions to provide the necessary match for the $5,895,000 FAA grant. 1 1 l i /- !l hrJ. G Mi MCVM/j Attachment cc: Barry Lindahl, Corporation Counsel Tim Moerman, Assistant City Manager Pauline Joyce, Administrative Services Manager CITY OF DUBUQUE, IOWA MEMORANDUM December 2, 1999 TO: Michael C. Van Milligen, City Manager FROM: Pauline Joyce, Administrative Services Manager SUBJECT: Runway 18/36 Extension Project The Fiscal Year 2000-2004 CIP included a project for lighting and paving a 1,423 foot extension of Runway 18/36 and construction of a parallel taxiway along the new runway in FY 2001. A second phase of this project was budgeted in FY 2002 and provided for paving and lighting the existing 4,900 feet of Runway 18/36 and rehabilitation of Taxiway Charlie. This past week the Airport Manager was contacted by the FAA regarding these projects and was told that the FAA is prepared to fund the entire project in the current federal fiscal year (City FY 2001) if the City is prepared to commit to its local share of 10%. The current budget for the two projects is $2,150,000 in FY 2001 and $3,400,000 in FY 2002 with Passenger Facility Funding of $265,000, General Fund support of $290,000 over the two year period, and FAA funding of $4,995,000. In preparation of the new FY 2001-2005 CIP the cost estimates for the project were updated to $2,700,000 and $3,950,000 and the phasing of the two projects reversed. Based on the City undertaking both projects in FY 2001, the consulting engineer estimates that there would be a savings of approximately $100,000 in total with City funding requirements being reduced by $10,000. Although the FY 2001-2005 CIP is still in draft form and has not been presented to City Council, the recommendation is far enough along that I feel comfortable recommending that we can move forward on both phases of the project in FY 2001 in order to take advantage of the available FAA funding. This involves spending some DRA distribution funds in the fiscal year they are received versus our current policy which is to program the funds received in January during the March budget public hearing process. This will not be the first time we have spent the DRA proceeds in the year they are received as this approach was also used when we financed the development of the industrial parks. The requested action step is for City Council to approve commitment of $280,000 of City funding in addition to the PFC funding to provide the necessary match for the $5,895,000 FAA grant. Dubuque Regional Airport ~~ ~. 11000 Airport Road + Dubuque, Iowa 52003-9555 + 319-589-4128 + Fax3I9-589-4108 Airport Manager Kenneth]. Kraemer, A.A.E. Airport Commission Tom Baldwin . Doug Brotherton . Paul Frommelt Rick Goodin . Terry Stanton November 22, 1999 Mr. Michael C. Van Milligen City Manager City of Dubuque 50 West 13th Street Dubuque, IA 52001 Dear Mike, Over one million cubic yards of earth have been moved at the Dubuque Regional Airport in the past few months to prepare the foundation for the Runway 18/36 extension project. With this second phase of the multi-year runway extension project nearing completion, it's now time to consider the next two phases of this important project. The Airport's original CIP plan for FY2001 includes $3,950,000 for phase three of the project, which includes resurfacing the existing 4,900 feet of the runway, as well as new edge drains, lighting, marking, grooving, pavement temperature sensor system, and earth work associated with the safety area on the north end of the runway. Phase four of the project includes the pavement work associated with the actual runway extension itself. Phase four was included in the Airport's CIP plan for FY2002 at a cost of $2,700,000. The federal government pays for ninety percent (90 %) of these project costs, leaving the remaining ten percent (10 %) to be funded through local sources. Over the course of these next two phases, the local funding will corne from Passenger Facility Charges (PFC) and from the General Fund. The funding break-out as originally proposed was as follows: Fiscal Phase Project Total Cost FAA PFC General Year Funds Funds Funds FY2001 Phase Resurface Existing $3,950,000 $3,555,000 $295,000 $100,000 Three 4,900 Feet FY2002 Phase Pave 1,425 Foot $2,700,000 $2,430,000 $80,000 $190,000 Four Extension I Total I $6,650,000 1$5,985,000 i $375,000 i $290,000 I Early last week, a rather unique opportunity was presented to us by our friends at the Federal Aviation Administration Central Region Airports Office in Kansas City. It seems that they may have an excess of Airport Improvement Program (AlP) funds available to them for immediate allocation. They are very familiar with the Dubuque runway extension project and they have expressed a desire to place phases three and four on a "fast track." In essence, they have offered to make nearly six million dollars in federal funds available to us immediately in order to proceed with phases three and four concurrently. Mr. Michael C. Van Milligen November 22, 1999 Page Two This unique opportunity would, of course, require that the entire general fund request of $290,000 be made available to the Airport in Fiscal Year 2001. In addition, the $80,000 programmed for PFC funding would need to be advanced a year earlier also; however, the Airport repays the PFC advances to the City as the PFC revenues are received from the airlines. The Dubuque Regional Airport Commission and staff respectfully request additional City funding be made available to the Airport in Fiscal Year 2001 so that we can proceed with phase three and phase four of the Runway 18/36 extension project concurrently. There are some significant benefits to the City by completing these phases simultaneously: 1) Through economies of scale, the overall project cost should decrease by $100,000. Since the City pays the ten percent (10 %) local match, this reduction in overall project cost will result in a savings of $10,000 in general funds. 2) A quicker completion of the overall project will mean that the fully extended runway will be available for use one full year earlier. 3) A condensed construction schedule will translate into a shorter disruption of airport facilities, thereby minimizing the risks of a construction-related incident on the airfield. The revised funding scenario would be as follows: Fiscal Phase Project Total Cost FAA PFC General Year Funds Funds Funds Resurface Existing $3,900,000 $3,510,000 $295,000 $95,000 FY2001 Phase 4,900 Feet Three Pave 1,425 Foot $2,650,000 $2,385,000 $80,000 $185,000 Extension Total $6,550,000 $5,895,000 $375,000 $280,000 I'm sure that you'll agree that opportunities like this don't come along very often. On behalf of the Airport Commission, I'm hopeful that you will support my request and forward your positive recommendation to the Dubuque City Council for their concurrence and approval. Thank you for your thoughtful consideration of this important request. S~OillS' L-- Kenneth Jl~er, AAE. Airport Manager