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Item # 17.

Council Meeting 2023

Meeting Date:	11/08/2022
Department:	Airport
Pillars:	Excellence in Transportation Systems
Milestones:	Implement the Asset Management Plan in accordance with the Asset Management Policy, utilizing information systems

AGENDA CAPTION:

Present, Discuss, and Consider Action on a Resolution Approving an Agreement with Garver, LLC for Professional Engineering Services for the Fuel Farm Expansion Project and Authorizing the City Manager to Execute the Agreement in an Amount Not to Exceed $198,800.

BACKGROUND:

The purpose of this item is to request award of a professional engineering services agreement to Garver, LLC to conduct a preliminary engineering review (PER) and present design options and opinions of probable cost for an expansion of the airport's bulk fuel storage facility.

The airport's current bulk fuel storage facility was constructed in 2004-05 and opened in 2007. It has a total fuel storage capacity of 315,000 gallons: 230,000 gallons of Jet-A storage capacity; 60,000 gallons of AvGas storage capacity; 15,000 gallons of diesel storage capacity; and 10,000 gallons of automobile fuel storage capacity. All storage tanks are currently leased and occupied. However, the two-compartment diesel and automobile fuel tank is underutilized. Since the new fuel farm opened (FY08 through FY21) the airport has averaged just over 6.3 million gallons in annual fuel flowage volume. The FY21 total of 7,489,760 gallons was the highest volume in that 14-year span. In FY22, fuel flowage volume totaled 9,551,605 gallons, a year-over-year increase of 27.5%. Given the opening of Galaxy FBO, the addition of multiple new large hangars at the airport, and an increase in the number and size of jets being based at Addison Airport, airport staff expects higher fuel volumes (greater than 9,000,000 gallons annually) to be sustained for the foreseeable future.

Early in FY22 airport staff noted the large increase in fuel volumes and reached out to all three FBOs to inquire about the adequacy of the current fuel storage capacity and assess whether there was any interest in adding fuel storage capacity. All three FBOs expressed keen interest in expanding fuel storage capacity, in particular Jet-A storage capacity. Airport staff then began work on evaluating expansion options and proposed a decision package in the FY23 budget (which was approved) to expend funds on engineering and design work to evaluate options for expanding the fuel farm and to produce reasonable construction cost estimates to bring back to Council for consideration in the FY24 budget.

Two additional scope items are also included in this proposal. First is the inclusion of automobile gasoline (MoGas) and diesel tanks to serve the Town's fleet fueling needs, replacing the underground tanks at Fire Station #1. General Services staff has communicated with Airport staff regarding the need to remove and replace the underground tanks at Fire Station #1. Including new tanks in the fuel farm expansion to serve Town fleet vehicles would likely be more cost-effective than installing a new stand-alone facility at Fire Station #1. This option would have the further advantage of consolidating fuel storage at the airport's fuel farm.

The second additional scope item is an evaluation of a self-service fueling installation on the west side of the airport, which would be constructed in conjunction with the Taxiway Bravo extension. All three FBOs are located on the east side of the airport and west side tenants have raised concerns over the difficulty of getting fuel to aircraft on the west side. Airport staff anticipates an increase in activity on the west side as Taxiway Bravo is extended and the east side of the airport is fully built out, leaving the west side as the primary location for any remaining expansion options. Providing fuel (in the form of a self-service facility for both AvGas and Jet-A) may facilitate and encourage new developments on the west side of the airport.

Funding for this work was approved in a decision package as part of the FY23 budget. Upon completion of the work contemplated in this agreement, the next step would be to proceed to detailed design and production of bid documents to support construction of the expansion in FY24, if approved by Council.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Fuel Farm Expansion Design Contract