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HomeMy WebLinkAboutIR 8820INFORMAL REPORT TO CITY COUNCIL MEMBERS �O'STkir, r v x u�a To the Mayor and Members of the City Council No. 8820 January 23, 2007 Page 1 of 2 SUBJECT: Proposed Funding for the Relocation of FM 156 This Informal Report is being provided to brief you on the status of the Alliance Airport Runway Extension Project and our proposed method for funding the relocation of Farm to Market Road 156 (FM -156), which is an integral portion of the project. The runway extension project is a multi -year, multi -phase project that began in January of 2001. This project progresses according to funds made available by the Federal Aviation Administration (FAA). To date, six FAA grants totaling $49,040,865 have been made available for the project. The total estimated cost of the runway extension project in 2001 dollars is $132,775,517. The City's share for all the above grants and all previous grants for Alliance Airport are from in -kind land credits. Since development of Alliance Airport, numerous land donations have been made to the City for its continued development. The value of these donations to date has been appraised at just over $15,000,000 and additional land will be donated as part of the runway extension. It is anticipated that the additional land donation will provide adequate credit to cover the City's share of the full scope of the runway extension project. The runway extension project is being managed by Carter & Burgess under a Program Management Contract awarded by the City Council on January 2, 2001. This Program Management Contract is amended each time additional grant funds are received defining a specific scope of work to be performed under the contract. To date, 282.798 acres of land have been acquired for the runway extension and two earthwork packages have been completed involving the relocation of approximately 2.5 million cubic yards of dirt, drainage improvements and fencing. The current phase of the project involves the relocation of Farm to Market Road 156 from Main Street in the City of Haslet to .3 miles south of State Highway 114. The road is programmed to be moved to the west to allow for the runway extension. To date, 40.055 acres of right of way (ROW) from seven different land owners have been acquired. Two remaining tracts of ROW are in the process of being acquired. One remaining tract of ROW (35.608 acres) has been scheduled for condemnation and Hillwood Development will be dedicating the remaining 33.844 acres to the City. In addition, the Council has awarded contracts for all utility relocations. Future phases of the Runway Extension Project will include the relocation of the Burlington Northern Santa Fe Railroad mainline and the extension of the two airport runways and one parallel taxiway to 11,000 feet. Funding for these phases of the project will come primarily from FAA funds or other sources that may be identified. The project will proceed according to funds made available. The 2001 construction estimate of $132,775,517 will most likely be exceeded, be (-au3e of the extended period of time it will take to complete the project. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8820 � To the Mayor and Members of the City Council January 23, 2007 0-16 �, > Page 2 of 2 a � s SUBJECT: Proposed Funding for the Relocation of FM 156 The construction cost of FM -156, the current phase of the project, is $22,343,495 dollars. The funds associated with this construction cost are from various sources including: Transportation Bill Earmark: $6,500,000 (Issued to TxDOT upon execution of LPAFA with the City) Tarrant County Bond Funds: $5,100,000 (Issued to TOOT upon execution of LPAFA with Tarrant County). FAA Grant Funds: $9,926,M (Available now) $21,526,074 Shortfall: ($817,421) Within the next thirty days, staff anticipates receiving a Local Project Advance Funding Agreement ( LPAFA) from the Texas Department of Transportation associated with the relocation of FM -156. The city's execution of the LPAFA requires that city funds in the amount of $10,743,495 ($22,343,495 less $6,500,000 Transportation Bill Earmark less $5,100,000 from Tarrant County Bond Funds) must be available 60 days prior to letting the project for construction. Staff desires to begin the construction in May. The City Attorney's office has determined that In accordance with the City Charter, staff will need to have all necessary revenue prior to the execution of the agreement. As a result, staff proposes to fund $10,743,495 necessary for the execution of the LPAFA as follows: • The city currently has FAA Grant Funds available for use on this project in the amount of $9,926,074. • The remaining shortfall of approximately $817,421 could be paid from several sources. Hillwood offered to provide the funding on a short term basis, which would require the execution of a reimbursement agreement. As the agreement would have repayment terms, eventually staff would have to identify a revenue source to reimburse Hillwood. It is highly likely that the revenue source would be gas well revenue since the amount is too large to be paid from the Municipal Airports Fund. As a result staff proposes to fund the $817,421 from the Aviation Capital Projects Reserve Funds using existing revenue from gas well bonuses. This action would eliminate the need for the execution of a reimbursable agreement and is consistent with the current gas well revenue policy as was adopted by City Council. 1. Charles R. Boswell City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS