Memorandum
City of Lawrence
Public Works
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TO: |
David L. Corliss |
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FROM: |
Charles F. Soules |
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CC: |
Mark Thiel, Diane Stoddard, Steve Bennett, Roger Zalneraitis , Ed Mullins, Airport Advisory Board |
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DATE: |
December 30, 2010 |
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RE: |
Airport Advisory Board Request To Construct New T-Hangars At Lawrence Municipal Airport |
I. Project Background: The Lawrence Municipal Airport offers T-hangars for lease to pilots to park/store their aircraft. Currently there are thirty (30) hangars which are and have been full since they were built. The newest units were constructed in 2003. The City also maintains a list of people that have shown interest in leasing a T-hangar. There are currently forty-one (41) people on the “waiting list” and the City and Board Members regularly have requests to lease a hangar but do not request to be added to the list as it is too long.
II. Project Description/Status: The Airport Advisory Board has been planning the construction of a new set of twenty (20) hangars for the last year. The need for additional T-hangars has been consistent; however construction costs and financing have not been favorable to keep leasing costs reasonable. With the turn in the economy we have seen construction and financing costs decrease and it is now feasible to proceed with this project.
Project Costs:
Estimated project costs include:
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Two 10-unit T-Hangar buildings |
$ 870,000 |
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Site grading and taxiways (asphalt) |
409,075 |
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Engineering / Inspection / Administration |
99,000 |
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Total |
$1,378,075 |
III. Analysis: Roger Zalneraitis has reviewed the project proposal and discussed length of financing options with Ed Mullins. Attached is a spreadsheet that has taken into account the revenues from the existing T-hangars, estimated construction costs, bond terms and interest rates, maintenance costs and projected/recommended rental rate for the new T-hangars.
The Board and staff agree that the T-hangers should be self sufficient, need to have full occupancy to be successful and need to be affordable. I think the Board would also agree that the market will determine the appropriate rental rate.
The Board’s proposal suggests a $235/month rental rate and a 30 year bond as an initial “first pass” review. Staffs’ analysis and recommendation would be a 12 year bond with an estimated rental rate of $255/month.
IV. Recommendation: The Board and staff agree there is a need for additional T-hangars at the Lawrence Airport and the timing for construction with respect to costs is now.
Staff can also recommend this project with a 12 year bond and estimated $255/month rental rate. The staff and Board would also agree that the estimated rental rate may change if construction costs are more/less favorable than expected.
If the costs are substantially higher the Board and Commission will need to review whether or not the projected rental rates are sufficient and if the project would proceed.
V. Consultant Selection: Every 5 years the City receives proposals for engineering services at the Airport. The FAA requires a quality based selection process. The recommendation for a firm is based on a number of criteria including: staffing, experience, previous projects qualifications, firm’s familiarity with project, communication, professionalism, work commitments, abilities of staff and firm, and access to the firm.
The City and Airport Advisory Board reviewed proposals from and interviewed several firms approximately a year ago and selected ADG (Airport Development Group) to provide engineering services at the Airport. The selection doesn’t preclude the City from using another firm but relieves the City from the selection process on every project. This project is not FAA funded however ADG has provided good service to the Lawrence Municipal Airport on many projects in the past. They are the most familiar with the Airport development and are prepared to begin design on this project.
Staff would recommend proceeding to negotiate an engineering services contract with ADG.
VI. Action Requested: Pending City Commission discussion, if appropriate:
· Authorize staff to proceed with the development of plans for the construction of T-hangars at the Airport,
· Authorize staff to negotiate a scope of services with ADG for the engineering design of the T-hangar project.
Attachments:
Aviation Advisory Board Request
Bond Issuance Summary - Revised 01/11/11