Dubuque Regional Airport New Terminal Facility Local MatchTHE CITY OF
Dui
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: New Terminal Facility Local Match Funding
DATE: February 13, 2013
Dubuque
kital
All- America City
II 111!
2012
Airport Manager Bob Grierson recommends City Council approval to seek and accept
federal Airport Improvement Program funds in 2013, with the intent to apply bond
proceeds from sales in early 2014 as the local match. Prior to the 2008 -2010 Great
Recession, it was quite common for the City to borrow after a project had been initiated.
With the uncertainty that started to exist in municipal bond markets, the City began
borrowing the funds prior to initiating the projects. An exception in this case seems
perfectly appropriate.
This is necessitated because the Federal Aviation Administration is funding the Airport's
new terminal complex at an accelerated rate.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
hrit44
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Robert A. Grierson, Airport Manager
THE CITY OF
Dui
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Robert A Grierson, Airport Manager
DATE: February 13, 2013
SUBJECT: New Terminal Facility Local Match Funding
Dubuque
had
All-America City
' 11'
2007
INTRODUCTION
The purpose of this memo is to provide information on the necessity of City (Local) matching funding for upcoming projects at
the Airport's new terminal complex in 2013. The near -term projects requiring matching funds include: Constucting Onsite
Water and Wastewater Improvements, Electric and Gas Service Installation (utility project), and Parking Lot Construction.
BACKGROUND
As a condition of receiving Airport Improvement Program (AIP) funds from the Federal Aviation Administration (FAA), the City
is required to ensure that local matching funds will be made available. In City FY12 the City borrowed $1,432,364 for the
local match on the Terminal Building Construction and $613,435 for the local match on the Terminal Apron which will be
repaid by Airport Passenger Facility Charges (PFC) revenue.
DISCUSSION
The FAA is funding this project at an accelerated rate. Based on multiple conversations with the FAA in December, 2012 and
January, 2013, AIP grants for Federal Fiscal Year (FFY)13 may be offered at any time from May 1 through September 30,
2013. The FAA currently has $2,438 545 of AIP funds programmed for construction of the Airport Onsite Utility project and
$3,850717 for the Parking Lot project pending available discretionary funds. Bonding required for FFY13 projects is
estimated at $641,996. The final figures will be based on bids received.
With City Council permission the Airport can continue with the steps outlined below while awaiting bond proceeds in early
2014. The following dates are estimates pending FAA grant awards, therefore somewhat flexible, but the process isn't:
• Bid Water and Wastewater Improvements, Gas and Electrical Service, Parking Lot Phases 1 &2 and Landscaping
Preliminary Design no later than May, 2013.
• Grant applications subrnitted to FAA to fund these projects based on bids no later than July, 2013 (pending availability
of FAA discretionary funds).
• Accept FAA grant offer no later that July, 2013 (pending available FAA discretionary funds).
• Notice to proceed issued to contractor no later than mid- August,2013 (pending available discretionary funds).
• Probable initial cash outlay from AIP grants estimated October, 2013 (pending September, 2013 start of construction).
• Probable initial cash outlay for Local Match estimated January, 2014 (pending September, 2013 start of construction).
RECOMMENDATION
I respectfully request the City Council authorize the Airport to seek and accept federal AIP funds in 2013 with the intent to
apply bond proceeds from sales in early 2014 as the local match.
PROJECT COST - BUDGET IMPACT
To avoid the loss of federal funding and project delays, the Airport requests the City Council authorize the Airport to seek and
accept federal AIP funds in 2013 with the intent to apply bond proceeds from sales in early 2014 as the local match.
ACTION TO BE TAKEN
I respectfully request the City Council authorize the Airport to seek and accept federal AIP funds in 2013 with the intent to
apply bond proceeds from sales in early 2014 as the local match.
Prepared by:
cc:
Robert A. Grierson, Airport Manager
Jennifer Larson, Budget Officer