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12/27/05 Leistiko/Capital Improvement PlanKalispell City Airport James H. Patrick, City Manager Fred A. Leistiko, Airport Manager Post Office Box 1997 - Kalispell, Montana 59903 Telephone (406) 250-3065 Fax - (406) 758-7758 Gary M. Gates, FAA, Helena Airports District Office Jim Greil, Chief, Airports / Airways Bureau, MT Aeronautics Division RE: Capital Improvement Plan for 2006-2011 Kalispell City Airport Gentlemen, The CIP you sent to the City of Kalispell in your December 9, 2005 memorandum does not reflect the CIP estimates we generated for you in May of this year. It appears the originally generated projects have been reduced, cut back, or eliminated. Therefore, I would like to again clarify the City's vision for the airport expansion project. The backlog of land purchases and the North End Surfacing Project are the first grant requests the City of Kalispell will submit after the KGEZ radio towers situation has been mitigated. This grant request alone will equal nearly $2.2 million, plus the estimated $691,000 for possible tower relocation assistance. We call this portion year one (YI). Since we have been able to acquire several tracts of land thus far, we have been able to establish land pricing for the balance of the necessary land acquisitions. The remaining land purchases are estimated at $3.1 million and would be accomplished in year two (Y2). The actual construction of the runway, taxiway, and apron area is estimated at $3.23 million and would be accomplished in year three (Y3). The acquisition of snow removal equipment, hangar development, refueling equipment, and SIZE building are all scheduled in year four (Y4) at an estimated cost of $1.0 million. We realize that plugging YI in and proceeding with this CIP is still up in the air and can not proceed until the tower situation is mitigated. However, what bothers us about your projections are the shortfall of nearly 50% of this project. If these are the new funding limits, then the project size and scope needs to be revisited and portions eliminated or scaled back. The only other alternative would be to seek funding through other channels, which we do not wish to do at this time. Would you please verify whether or not the revised table you sent out represents the 29 111111 1!111111111111 1 =�B I I a i �1 �•i � � � � � 1 I � mcz• • Sincerely, Fred A. Leistiko, Manager (S27) AN EQUAL EMPLOYMENT OPPORTUNITY EMPLOYER $ummarV Capital Improvements Fiscal Year Description of Improvements Last Paving Project PCI Total Estimated Costs Federal Share 95% State Share Participation Sponsor Share 5% ACIP Codes Priority Number P I C T Rating Year 2006 2006 PROJECTS PL PL MA 68 ALP Update $ 20.000 $ 19,000 $ $ 1,000 2006 PROJECTS -TOTAL $ 20,000 1 $ 19,000 1 $ $ 1,0w 2007 2007 PROJECTS ST LA DV 40 Phase I radio station removal $ 591,114 ? $ 561,558 $ $ 29,556 $ f $ $ $ 2007 PROJECTS -TOTAL $ 591,114 $ 561,558 $ $ 29,556 2008 2008 P ST LA DV 40 Phase I radio station removal $ 1,210,526 $ 1,150,000 $ $ 60,526 $ $ $ $ 2008 PROJECTS - TOTAL $ 1.210.526 $ 1.150.000 $ $ 60,526 2009 2 ST LA DV 40 Phase 2A tower mitigation land $ 1,210,526 $ 1,150,000 $ $ 60.526 $ $ $ $ 2009 PROJECTS - TOTAL $ 1,210,526 1 $ 1,150,000 $ $ 60,526 2010 2010 PROJECTS ST LA DV 40 Phase 2B - Land $ 1,387,388 $ 1,318.019 $ $ 69,369 CA RW CO 64 Reconstuct Runway, TIN, Apron - Engineering $ 244.191 $ 231,981 $ $ 12,210 $ $ $ $ 2010 PROJECTS - TOTAL $ 1,631,579 $ 1,550,000 $ $ 81,579 2011 2011 PROJECTS CA RW CO 64 Reconstruct Runway $ 1,210,526 $ 1,150,000 $ $ 60,526 2011 PROJECTS -TOTAL $ 1,210,526 $ 1,150,000 $ $ 60.526 Total Federal State Sponsor Estimated Share Share Share Summary Costs 95% Participation 5% Total of Five Year Capital Improvements $ 5,874,271 $ 5,580.557 $ - $ 293,714 HAAIRPORTSt0726.012-MT-CIP 2005Final CIP's\Kalispel City\[Kalispell City MASTER ESTIMATE SHEET.xIslCIP FORM Montana Department of Transportation Jim Lynch, Director sav6rj yvu �'Kh pHda Aeronautics Division Brian Schweitzer, Governor 2630 Airport Road PO Box 200507 Helena MT 59620-0507 December 9, 2005 RE: Capital Improvement Plan for 2006 -2011 Dear Airport Sponsor: The Montana Department of Transportation, Aeronautics Division through a grant from the Federal Aviation Administration (FAA), has developed Capital Improvement Plans (CIP's) for National Plan of Integrated Airports System (NPIAS) airports in Montana. Attached please find a copy of the final Capital Improvement Plan for your airport for the years 2006 through 2011. We requested that each airport prepare a CIP in April 2005. The initial CIPs were gathered and reviewed. Annual project costs for requested capital improvements statewide were compared against estimated available FAA funds. Typically, the requested capital improvements each fiscal year far exceeded available funds. During the 2006-2011 period, estimated capital improvement costs exceeded estimated available funds by approximately forty million dollars ($40,000,000). Most of Montana's public use general aviation airports receive Non -primary Entitlement (NPE) funds annually. Currently, the maximum annual dollar amount of NPE funds an airport can receive is $150,000. We assume that this will not change during the 2006- 2011 period. Sponsors can accrue NPE funds for four years. For example, if you receive $150,000 annual NPE funds in 2006, 2007, 2008, and 2009, you have a total of $600,000 in available NPE funds. NPE funds can be transferred from one Sponsor to another. If you have not used any of these funds by October 1, 2009 (start of federal fiscal year 2010), either by transfer or on a project, the $150,000 from year 2006 (or any remaining portion thereof) will no longer be available to you. These unused funds will likely be used for airport improvements 'in another state. Transferring of NPE funds to another Montana Sponsor that needs additional funds to complete necessary airport improvements improves the aviation infrastructure in the State of Montana, rather than elsewhere. Additional FAA funding sources (other than NPE) include State Apportionment (SA) funds and discretionary funds. These funds are typically used for larger, higher priority projects which generally cannot be funded with NPE funds. Demand for these funds is significant. Because capital improvement costs were much greater than estimated funding levels, it was determined that projects required to keep existing facilities (typically pavements and lighting systems) in good condition and projects required to bring the new Part 139 Phone: (406) 444-2506 An Equal Opportunity Employer TiY: (800) 335-7592 Fax (406) 444-2519 Web Page: www.mdtstate.mt.us/aeronautics airports into compliance would be given high priority. Also, several locations across the State have major, multi -year improvement projects currently underway which were given a high priority. The attached CIP may differ from your initial CIP due to these statewide priorities and funding constraints. Please review your CIP and begin making plans to complete the projects listed during the time frame indicated. If you have not done a project in recent years, you will most likely be required to select an engineering consultant to assist you with your projects. Please contact the FAA personnel listed below if you need to select an engineering consultant. Your input was vital to this important planning process to prioritize and budget Federal and State funds for airport improvements throughout Montana. We appreciate and effort you put into providing information to us. If you have any questions or if we can provide you with further information please let us know. The contact persons are: Gary Gates (406) 449-5230 FAA, Helena ADO 2725 Skyway Dr., Ste 2 Helena, MT 59602 John Styba (406) 449-5279 FAA, Helena ADO 2725 Skyway Dr., Ste 2 Helena, MT 59602 Jim Greil (406) 444-2506 Division of Aeronautics P.O. Box 200507 Helena, MT 59620-0507 Sincerely, d a Gates, Helena Airports District Office dim Greil, Chief - Z Airports / Airways Bureau MT. Aeronautics Division CADocuments and Seftings\sengebrechtkMy Documents\2005 SSPUkNovember 2005 CIP Letter to Sponsors.doc