On January 9, 2018, Council approved an agreement with Page Southerland Page, Inc., (Page) for architectural design services related to the design of a Customs and Border Protection Federal Inspection Services (Customs) facility on Addison Airport. The scope of work for the agreement includes the following:
- A schematic design of the Customs facility to include the airport administrative office combined with the Customs facility
- A schematic design of the Customs facility as a separate, stand-alone facility
- A detailed, comprehensive cost estimate for each schematic design alternative
The schematic design for the two options, the customs facility with airport administrative offices or the customs facility as a stand-alone facility, is complete and the cost estimates for each alternative have been developed. The Finance Department has reviewed the cost estimates that Page has developed and has provided possible alternatives for funding the facility.
Staff is seeking direction from Council on two questions:
- Should the airport administration offices be included in the final design of the Customs facility?
- How should the facility be funded?
Page has developed the schematic design for the two options as well as the cost estimates for three alternatives.
- Option A: 2-story Customs facility, plus airport office
- Option B, Phase 1: Single-story stand-alone Customs facility
- Option B, Phase 1 & 2: Customs facility and airport administration in separate buildings, built concurrently
The cost estimates for each option are included below. Included in the total cost is the Customs facility, landside site improvements, airport administration offices where appropriate, airfield ramp and taxiway improvements, demolition costs, Information Technology, security, furniture, and equipment. A more detailed table is included as an attachment to this item.
| Scope |
Cost |
| Option A: 2-story Customs, plus airport office |
$6,186,248 |
| Option B, Phase 1: Single-story, stand-alone Customs Facility |
$3,817,254 |
| Option B, Phase 1 & 2: Customs Facility and airport administration office in separate buildings, built concurrently |
$6,297,340 |
The Finance Department has reviewed the funds that are available in the Airport fund, accounting for the required 25% reserve balance. The Airport fund has $3,000,000 in excess of the required 25% fund reserve. Therefore, the fund does not have the capacity to pay cash for any of the above options without additional funds from other sources. The Airport fund could support the debt service for any of the options listed from annual operating revenues.
Staff recommends that Option A, 2-story Customs facility with Airport office on the second floor, be designed and built and that 20-year Certificates of Obligation be used to fund the construction of the facility for the following reasons:
- Using cash from the Airport fund would leave the fund with little ability to fund other priorities, such as local match for TxDOT grants and other capital improvements
- Debt service can be supported using annual operating revenues
- There is not currently a "front door" at the airport that is easily accessible to visitors and airport users
- The airport administration is currently in leased office space that does not have visibility to the airfield, nor easy access to it
- Airport administration's proximity to the Customs ramp will facilitate identification of the user and collection of a fee for Customs services
- Option A provides the most efficient use of the space available and leaves space for a future hangar development
- All of the options have a negative Net Present Value and negative cash flow because the revenue from the Customs fee alone will not pay for the expenditure. The Net Present Value of Option B, however, is more favorable than Option A by $824,754, even though it is still negative. Option B also has less of an impact on the annual cash flow than Option A by $83,330. Option B, however, does not achieve other goals.
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