2012/07/16 Resolution 5572 - City AirportCity of Kalispell
OFFICE OF THE CITY MANAGER
TO: Mayor Fisher and Kalispell City Council
FROM: Doug Russell, City Manager
Subject: Resolution No. 5572 - Resolution Accepting Airport Master Plan and
Approving Alternative Site 1-Option B
MEETING DATE: July 16, 2012
At the last regular City Council meeting, action was taken to consider a future motion for
accepting of the Stelling's Airport Master Plan with Site 1- Option B as the course of action for
the future of the Kalispell airport. This option would include upgrading the airport to B-II design
standards using FAA funds as outlined in the Stelling report. The Stelling report has been
previously distributed and deliberated, including a public hearing to gather public comment.
RECOMMENDATION: It is recommended that the City Council deliberate and take action on
the requested motion.
FISCAL IMPACTS: Adopting the motion to upgrade the Kalispell airport according to the
Airport Master Plan would start the process of implementing the Capital Plan that is identified in
Table 7-4 of the Stelling Report and attached to this memorandum.
ALTERNATIVES: Alternative options to this requested motion include a wide variety of
options from the Stelling report that have been previously discussed as alternatives. This does
not preclude the reconsideration of these options and the City Council has the freedom to amend
or provide any action so desired.
Respectfully Submitted,
r-
ougRAfssell, City Manager
www.kalispell.com
WHEREAS, on February 1, 2010 the Kalispell City Council agreed to retain Stelling
Engineers, Inc. as engineers of record to serve as the City's airport consultants;
and
WHEREAS, on April 19, 2010 the Kalispell City Council approved and accepted an airport
planning grant sponsored by the Federal Aviation Administration [FAA] for the
purposes of updating the Kalispell City Airport Master Plan; and
WHEREAS, pursuant to the purposes and direction of the FAA planning grant, Stelling
Engineers, Inc. studied the existing Airport Master Plan, collected data regarding
the current activity of the airport as well as projected activities, studied and
reported on the existing state of the airport facilities as well as required facility
upgrades to meet FAA requirements for funding and developed a number of
alternatives for the City to consider in planning the future of the airport; and
WHEREAS, as a required part of the planning process Stelling Engineers, Inc. advertised and
held a public meeting on September 22, 2010 regarding the process of the study,
advertised and held a public open house on January 18, 2011 to discuss and hear
public comment on the status of the existing airport services, and advertised and
held a public open house on April 25, 2011 to discuss and hear public comment
regarding possible future facility upgrades; and
WHEREAS, on April 4, 2012 Stelling Engineers, Inc., following consideration and comment
by the FAA, provided the Final Master Plan Update document to the City which
was then published on the City website and made available to the public; and
WHEREAS, on April 9, 2012, the City Council held a public workshop with Stelling
Engineers, Inc., and a representative of the Federal Aviation Administration to
review the Final Master Plan Update document; and
WHEREAS, on May 7, 2012 a duly noticed public hearing was held before the City Council to
take evidence and opinion from the public regarding the Final Master Plan Update
document and more specifically the alternatives proposed within the document;
and
WHEREAS, the City Council has considered the evidence within the Final Master Plan Update
document as well as evidence derived from previous studies and has considered
all of the written and oral testimony provided by the public.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION I That the Council accepts the Kalispell City Airport Master Plan Update
submitted by Stelling Engineers, Inc. on April 4, 2012 and further
resolves that the city shall proceed with the collaboration of the Federal
Aviation Administration to develop the airport pursuant to Site I, Option
B: Existing Site with ARC B-II Standards as described in Chapter 6 of
the subject Master Plan Update.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR
THIS 16TH DAY OF JULY, 2012.
Tammi Fisher
Mayor
Offam
Theresa White
City Clerk
TABLE 7-4
Capita[ Improvement Plan
2012
I
Pavement Maintenance - Phase I Improvements
Maintenance
$
30,000
$
-
$
30,000
$
-
$
-
$
-
$
30,000
S
-
$
30,000
2
Environmental Assessment
Environmental
$
-
$
45,000
$
45,000
$
40,500
$
-
$
40,500
$
4,500
$
-
$
4,500
3
KGEZ Tower Mitigation Assistance
Hazard
$
-
$
20,000
$
20,000
$
-
$
-
$
-
$
20,000
S
-
$
20,000
$
30,000
$
65,000
$
95,000
S
+0,500
S
-
S
40,500
$
5+,500
$
-
5
54,500
5u6total 201 2 Projects
2013
--
Land Acquisition Assistance (All Parcels)
Varies
$
-
$
216,480
S
221,890
S
-
$
-
$
-
$
221,890
$
-
$
221,890
5
$
216,480
S
221,8510
$
$
$
-
$
221,890
$
-
$
221,890
5u6total 201) Projects
2014
3
KGEZ Tower Mitigation (w/ 2012 A & E Fees)
Hazard
S
400,000
$
-
$
420,300
$
198,000
$
-
S
198,000
$
222,300
S
121,150
$
101,150
--
Reimbursement, Land Acquisition (Tracts 2D, 2F)
Development
S
-
S
-
$
$
509,827
$
-
S
509,827
S
(509,827)
$
-
$
(509,827)
--
Reimbursement, Land Acquisition (Tracts ID, 1DA)
Approaches
$
-
$
-
$
$
697,244
S
-
$
697,244
$
(697,244)
$
$
(697,244)
--
Reimbursement, Land Acquisition (Tract IF)
Approaches
$
-
$
-
$
$
105,809
$
-
S
105,809
$
(105,809)
$
$
(105,809)
--
Reimbursement, Land Acquisition (Tract IF)
Development
$
-
$
$
$
101,309
$
-
$
101,309
S
(101,309)
$
-
S
(101,309)
--
Reimbursement Professional Services (2005-2009)
Development
$
-
S
-
$
-
$
214,013
S
40,923
$
173,090
$
(214,013)
$
S
(214,013)
-
Reimbursement, Phase I Ramp Expansion (2006)
Development
$
-
$
-
S
-
$
1,309,077
$
1,309,077
S
-
$ (1,309,077)
$
-
$ (1,309,077)
$
+00,000
$
-
S
+ZO,500
s
3,155,279
$
1,550,000
$
1,785,Z79
S
121,150
5u6tota1201+Projects
$ (2,71`1-,979)
$
(Z,856oZq)
2015
4
Reimbursement, Land Acquisition (Tract 2+)
Development
$
600,000
$
-
$
646,100
$
581,490
$
-
$
581,490
S
64,610
S
-
S
64,610
5
Reimbursement, Land Acquisition (Tract 2E)
Development
$
180,000
$
-
$
193,800
$
174,420
$
-
$
174,420
$
19,380
$
-
$
19,380
6
Reimbursement, Land Acquisition (Tract2FA)
Development
$
225,000
$
-
$
242,300
$
230,185
$
-
$
230,185
S
12,115
$
-
S
12,115
7
Reimbursement, Land Acquisition (Tract 2G)
Development
$
115,000
$
-
$
123,800
$
111,420
$
-
$
111,420
$
12,380
$
-
$
12,380
8
Reimbursement, Land Acquisition (Tracts 2J, 2JA, 2JB)
Development
$
270,000
$
-
$
290,800
$
261,720
$
-
S
261,720
$
29,080
S
$
29,080
9
Reimbursement, Land Acquisition (Tract 2M)
Development
$
60,000
$
-
$
64,600
$
58,140
$
-
$
58,140
$
6,460
$
-
$
6,460
10
Reimbursement, Land Acquisition (Tract 7C)
Development
$
30,000
$
-
$
32,300
$
29,070
$
-
$
29,070
S
3,230
S
S
3,230
11
Reimbursement, Land Acquisition (Tract 51313)
Development
$
60,000
$
-
$
64,600
$
58,140
$
-
$
58,140
S
6,460
$
-
$
6,460
12
Reimbursement, Land Acquisition (Tracts 5, SGC, 5H, 53, 1213)
Development
$
809,100
$
-
S
871,300
$
784,170
$
-
$
784,170
$
87,130
$
-
$
87,130
13
Reimbursement, Land Acquisition (Tract 5HA)
Development
$
85,800
$
-
$
92,400
$
83,160
$
-
$
83,160
S
9,240
S
-
$
9,240
$
2,+)+,900
$
-
$
2,622,000
$
2,571,915
$
-
$
2,571,915
$
Z50,085
$
-
$
250,085
5u6total2ot 5 Projects
2016
14
Reimbursement, Land Acquisition (Tracts 6, 6D, 6K, 13C, I3F, 13
Development
$
1,275,000
$
-
S
1,407,400
$
1,266,660
S
$
1,266,660
S
140,740
S
-
$
140,740
15
Reimbursement, Easement Acquisition (Tract I)
Approaches
$
20,000
S
-
$
22,100
$
19,890
$
$
19,890
S
2,210
S
-
$
2,210
16
Reimbursement, Easement Acquisition (Tract IA)
Approaches
$
9,000
$
-
$
9,900
$
8,910
$
$
8,910
$
990
$
-
$
990
17
Reimbursement, Easement Acquisition (Tract 12A, 12AA)
Approaches
S
267,500
$
-
$
295,300
$
265,770
$
$
265,770
$
29,530
$
$
29,530
18
Reimbursement, Land Acquisition (Tracts 12, 12C)
Approaches
$
323.047
$
-
$
356,600
$
320,940
$
$
320,940
$
35,660
$
-
$
35,660
--
Reimbursement, Land Acquisition Assistance (2013)
Development
$
$
-
S
-
$
199,701
$
-
$
199,701
$
(19%701)
$
$
(199,701)
--
Preliminary Engineering & Preliminary Design
$
-
$
179,480
S
198,100
$
178,290
$
-
$
178,290
$
19,810
$
9,905
$
9,905
$
1,894,547
$
1 79,+80
$
2,289,400
$
2,260,16 1
s
-
$
2,260, 16 i
$
29,259
$
91905
$
19,3 5-t
5u6total 201 6 Projects
2017
19
Phase II Ramp Expansion
Demand
$
827,070
$
70,310
$
1,015,300
S
913,770
S
-
$
913,770
S
101,530
$
50,765
$
50,765
20
Phase II Taxiway Improvements
Safety
$
412,900
$
35,100
$
506,900
$
456,210
S
-
$
456,210
S
50,690
S
25,345
$
25,345
21
Phase II FBO Facilities, Access Road & Parking
Revenue
$
885,450
$
110,690
$
1,127,000
$
-
$
-
S
-
S
1,127,000
$
-
$
1,127,000
22
Phase II SeIf-Service Fuel System
Revenue
$
375,000
$
46,880
$
477,300
$
-
S
-
S
-
S
477,300
S
-
$
477,300
23
Relocate Utilities (SS, FM & Gas)
Safety
S
150,000
$
18,750
$
190,900
$
171,810
S
-
$
171,810
S
19.090
$
9,545
$
9,545
$
2,650,+20
$
281,750
$
3,317,+0
$
1,5+1,790
$
-
5
1,5`1-1,790
$
1,775,61 o
S
85,655
$
1,669,955
5u6total 2017 Projects
I Phase III Runway Improvements
2 Phase III Taxiway Improvements
5u6total 2018 Projects
2019 3 Pavement Rehabilitation - Phase I Improvements
ju6total 201 9 Projects
2020 4 Perimeter Wildlife Fence
- Reimbursement, Phase II Self -Service Fuel System
cju6totaj 2020 Projcc
2021 -- Reimbursement, Phase 11 FBO Facilities, Access & Parking
5 Land Acquisition (Tract 3AB)
Su6totaj 2021 Projec
2022 No Projects Planned for 2022
2023 No Projects Planned for 2023
2024 1 Pavement Maintenance - Phase I, II & Ili
,Subtotal 2024 Froj
2028 No Projects Planned through 2028
2029 2 Pavement Rehabilitation - Phase I, II & III
5u6total 2029 P
2031 No Projects Planned through 2031
(A) Development Costs Estimated in 2012 Prices
TABLE 7-4
Capital Improvement Plan
Safety
$
2,621,220
$ 222,810
$ 3,298,200
$
3,133,290
$
-
$
3,133,290
$
164,910
$
82,455
$
82,455
Safety
$
625,805
$ 53,200
$ 787,400
$
748,030
$
-
$
748,030
$
39,370
S
19,685
$
19,685
$
2,621 ,22o
$
-
$
3,133,290
$
164,g i o
6
82,455
$
82,455
$ 222,810 5,298,200 $ 5,133,290
Maintenance
$
672,000
$ 84,000
$ 898,600
$
808,740
$
-
$
HMO
$
89,860
$
44,930
$
44,930
$
672,000
$
-
$
808,710
$
89,860
$
44,930
$
++,930
$ 84,000 $ 898,600 $ 808,740
Safety
$
312,400
$ 39,050
$ 428,200
$
385,380
$
-
$
385,380
$
42,820
$
21,410
$
21,410
Revenue
$
-
$ .
$ -
$
429,570
$
429,570
$
-
$
(429,570)
$ (214,785)
$ (214,785)
Is
512,400
$
+29,570
$
3851380
$
(386,750)
5 59,050 $ +28,200 $ 814,950
$
(195,575)
$
(19),375)
Revenue
$
-
$ -
$ -
$
1,014,300
$
1,0I4,300
$
-
$
(1,014,300)
$
(507,150)
$
(507,150)
Development
$
300,000
$ 15,000
$ 393,400
$
354,060
$
-
$
354,060
$
39,340
$
19,670
$
19,670
$
300,000
$
I,014,300
$
354,o6o
s
(974,96o)
$
(487,--80)
$
(487,480)
$ 15,000 $ 393,400 $ 1,368,36o
Maintenance $_ 260,000 1 $ 32,500 I $ 393,400 [ $ 354,060 I $ 354,060 I $ - 1 $ 39,340 $ 19,6701 $ 19,670
$ 26o,000 $ 52,500 $ 393,40o t[ $ 354,060 $ 354,060 .s - $ 39,340 $ 19,670 $ 19,670
Maintenance
$
2,107,000
$
263,380
$ 3,606,800
$ 3,246,120
$ 452,070
$
2,794,050
$ 360,680
$ 180,340
$
180,340
$
2,107,000
$
263,38o
$ 3,6a6,800
$ 5,246,12o
$ +52,070
$
2,794,050
$ 36o,68o
$ 180,540
$
180,54o
(B) Engineering & Administrative Costs: 4% for Preliminary Engineering; 8.5%% for Design Engineering, Bidding Assistance, and Construction Administration; 5% For Land Acquisition Assistance, $45,000 for EA, $0 for Prior Acquisition
(C) Total Project Cost Adjusted for 2.5% Annual Inflation Rate.
(D) Federal Share Assumes Funding Level will Continue at 900/0.
(E) Non -Primary Entitlement Funding Assumed to Continue at $150,000 per Year Through Intermediate Term Program.
(F) State Apportionment Funding Contingent Upon Eligibility of Project and Availability of Funds.
(G) Local Match Requirements Contingent Upon Continuation of 90% Federal Funding Level.
(H) MDT Aeronatics Grant Funding Based on Maximum Grant Amount Equal to 50% of Local Match; Subject to Availability of Funds and Award by Aeronautics Commission.
City of Kalispell
OFFICE OF THE CITY MANAGER
MEMORANDUM
To: Mayor and City Council
From: Doug Russell, City Manager
Subject: Airport Questions
Date: 7/11/12
During, and since, the previous regular meeting, I have received multiple questions related to the
airport. Rather than sending out individual emails to the council for each question, I have placed
the questions and answer in this singular report. Some of the information comes from the Stelling
report, some from my experience working with FAA projects, some from my forecasts and analysis.
Hence, if you have a question or would like clarification, please don't hesitate to contact me.
1) What will it cost to build an FBO building?
As outlined in Stelling report's Capital Plan:
2017 FBO Facilities, Access Road and Parking $1,127,000 (total cost plus inflation). A portion of
this work would be reimbursable. Stelling is estimating that the reimbursable portion will be
$355,000. As far as the building size and cost itself, which was the initial question posed:
The FBO contract language is identified below:
"Lessor shall at the time of realignment and vacation construct an FBO officefacility and
hanger which will meet the business needs of the FBO Lessee and the needs of the City
Airport within the airport master plan improvement area "
It is difficult to argue that it would have to be any bigger than it currently is. An engineer's estimate
for a new facility at the Yankton airport was approximately $42 square foot for a heated, plumbed,
and finished hangar with higher walls than the current FBO in Kalispell (which also is not finished,
heated or plumbed and should be cheaper per square foot for the hangar space.)
I asked our building department what they are generally seeing for commercial construction and cost
per square foot (estimated for this type of construction for the FBO building at $100.00).
Using this as the example, the Hangar portion of the new FBO can be estimated at 3720 sq. ft. X $40
a square foot= $148,000
Light commercial for the office space of the new Facility can estimated at 2058 sq. ft. X $100.00 a
square foot= $205,800
Using these numbers, cost can be estimated at $354,800 for the construction portion of the FBO
building. This does not include parking, access drives, utility relocations, etc. Hence, with all things
considered, the estimate provided in the Stelling report accounts for these additional items and the
building construction itself.
2) What is the out of pocket payments for the Capital Project
I have attached two charts to review the Capital Plan through 2021. After 2021, the efforts turn to
maintenance. The first graph identifies the total project cost, the total federal cost (which includes
monies payable to Kalispell for previous work- which is why it is higher than the total cost), and the
total local match. The second graph identifies the source of funds to and from the City of Kalispell,
including federal reimbursements for previous eligible projects including the application of
entitlement funds applied to costs. The leftover amount is the estimated amount that should be
reimbursed to the City of Kalispell after expenses paid through 2021 are completed.
Estimated Project Costs Through 2021
$13,984,390
$16,000,000
$14,000,000
v
a $12,000,000
a`
$10,000,000
to
C 58,000,000
c
o
$6,000,000
0 $2,870,554
o $4,000,000
t-
52,000,000
$0
Total Project Cost FederalCosts Local Match
'The federal costs include reimbursements for project casts that occurred
previously
Local Match- Source, Costs, and Leftover
(This review sloes not include state assistance- which would increase the leftover
amount for the City of Kalispell by up to $385,175.)
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
\}OS Jp6S
ri
h
opt of
3) Can we get a more detailed forecast of budget operations into the future?
I put together a quick forecast, one that I am still considering as a draft forecast. However, it is
enough to give an idea of what we could expect from operations of the airport. Naturally, every
forecast and assumption can be questioned. However, the biggest question related to the forecast
is how will the gap between expenses and revenues be adjusted into the future? If it is desired to
have the airport operate without a subsidy, expenses would either have to be reduced into the
future with a change in service model/level, or new revenue generating functions.
***It is important to note that the maintenance into the future in the Capital Plan from 2022-
2031 indicates that there will be a local match of about $400,00 ($200,000 if we get state aid).
This cost is above and beyond funding from entitlement payments. Whether we use the
remainder of funds from the leftover reimbursement or use another funding source will be a
decision that will need to be made at that time.
Operating Budget Forecast
$140,000.00 -- - - — - - --
$120,000.00
$100,000.00
$80,000.00
Operating Revenue
$60,000.00--------- ---*--Operating Expenses
$40,000.00
$20,000.00
$0.00 �- -- - -
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023.
Assumptions and Conditions of Forecast:
- Projections are based upon current service levels as the baseline with 1 new plane added
to the field per year + 6 new hangar leases, (1 per year, beginning in 2016).
- Operating Expenses do not include any capital (which is addressed in the Capital Plan
where reimbursements and entitlement funds account for the costs of capital
improvements).
- Operating Expenses do not include "other" events- such as legal fees, etc.
4) Will we need start-up funding to get the project moving forward and if so, where will the
funding come from, can we use TIF funds?
The Stelling report does identify that there will be a need for the City to fund the project at the
beginning as reimbursements will not begin until the 27 parcels are acquired and the radio towers
are mitigated. The funds needed to acquire these properties will be decided upon through a future
appropriation, but my process and recommendation for funding projects such as this in the past is
to use a Certificate of Participation (short-term lending) once we have options on all of the
properties. That way, the lending device can be structured for as short of period of time as
possible. By securing properties with an option, we can schedule closing simultaneously, rather
than be placed into a situation where we have 20 properties bought and paid for, yet the project
never materializes because of 5 properties. TIF funds could likely be used, but may need an
amendment to the plan.
5) When will we start receiving reimbursement for the project?
The reimbursements will be paid to the City of Kalispell after the property has been acquired and
the towers have been mitigated. The reimbursement funding may take several years to complete
based upon FAA resources/projects/etc.
6) What will be the loss of tax revenue from the acquisition of the properties for the upgrade
project?
Stelling identifies 27 parcels needed be acquired to become eligible for FAA funding. Some of
these are easements and some are property acquisitions. The Stelling report (in Appendix Q)
identifies the 27 needed parcels and easements and several additional remnants that aren't
required but are next to or split by a needed parcel and are owned by the adjacent respective
property owner (I mention this only in case you are wondering why there is more than 27 parcels
listed.) The properties identified are in the county and thus paid no City taxes. However, the
amount of taxes they did pay to the county, education, etc., in 2011 was approximately
$76,111.13.