Agenda

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15.

Work Session and Regular Meeting

Meeting Date:	04/24/2018
Department:	Finance
Pillars:	Gold Standard in Financial Health
Milestones:	Leverage Addison's unique assets to grow and expand placemeaking and events that will set Addison apart and attract talent and businesses

AGENDA CAPTION:

Present, Discuss, and Consider Action on an Ordinance to Amend the Town's Annual Budget for the Fiscal Year Ending September 30, 2018 to Provide Funding for Construction of the Wing Aviation Apron Connector and the Claire Chennault Street Driveway Reconstruction at Addison Airport.

BACKGROUND:

The Fiscal Year (FY) 2018 budget was adopted by Council on September 13, 2017. This is the second amendment for the FY2018 Town of Addison annual budget.

Each year, Finance staff reviews the budget to determine which items should be recognized with formal budget amendments. When budget variances occur that are outside of the authority of the City Manager these adjustments are presented to the council in the form of a budget amendment.

At the February 28, 2017 meeting, Council approved a conventional hangar lease agreement between the Town and Wing Aviation Charter Services, LLC, for commercial aviation use on property located at 4555 Glenn Curtiss. There is no direct pavement connector from the hangar ramp to Taxilane Uniform; taxilane access is available only through the ramp of an adjoining property leased to another tenant. Because of this situation, and as a condition of the lease, the Airport agreed to construct a connector from the Wing Aviation hangar ramp to Taxilane Uniform within 18 months from the commencement date of the lease, which was March 1, 2017.

At the same time that construction of the Wing Aviation connector was being considered, the tenant at 4554 Claire Chennault advised that the concrete driveway serving tenant’s property had failed. Staff investigated and determined that repair of the driveway was the landlord’s (airport’s) responsibility. The work needed for this repair (concrete pavement and drainage improvements) is quite similar to the work required for the Wing Aviation connector. Because this was a small project, it was decided to include this work in a single bid package with the Wing Aviation connector to reduce costs through economies of scale.

Currently, $411,000 is budgeted for facility capital repairs and maintenance for various small projects. Of this amount, $190,000 has been allocated for this project. Due to delays in the awarding of federal airport improvement grants, $10,240 has become eligible in grant matching funds that was originally budgeted for the Town’s matching portion. The remaining amount needed to fund this project is $185,760 that is proposed in this budget amendment to be taken out of fund balance. The table below summarizes the funding sources for this project:

Funding Source	Amount
Budgeted funds for capital repairs and maintenance	$190,000
Grant matching funds (Town's portion)	$10,240
Fund Balance	$185,760
Total	$386,000

RECOMMENDATION:

Administration recommends approval.

Attachments
Ordinance - Airport Fund Budget Amendment