Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Enter into an Advance Funding Agreement with the Texas Department of Transportation for the Airport Runway Extension to the North to Enable Realignment of Spur 399 at McKinney National Airport
Summary
COUNCIL GOAL: Maximize the Development Potential of McKinney National Airport
(3A: Implement initiatives and strategies, including public-private partnerships, to attract and expand corporate and commercial aviation including the viability of passenger service)
MEETING DATE: June 7, 2022
DEPARTMENT: Development Services / Engineering
CONTACT: Gary Graham, Director of Engineering
Kenneth Carley, Director of Airport
RECOMMENDED CITY COUNCIL ACTION:
• Approval of the Resolution.
ITEM SUMMARY:
• This Resolution authorizes the City Manager to enter into an Advance Funding Agreement with the Texas Department of Transportation (TxDOT) Outlining Obligations, Funding Sources, and Requirements for the Airport Runway Extension to the North to Enable Realignment of Spur 399 at McKinney National Airport
BACKGROUND INFORMATION:
• The McKinney National Airport Master Plan identifies the need for a 1,500-foot runway extension to Runway 18-36. A preferred alternative analysis has identified the best option is a split 500-foot extension to the south and a 1,000-foot extension to the north.
• The goal of the project is to meet the needs of McKinney National Airport’s increasing segment of jet activities. The Airport Master Plan projects increased use by business jets needing longer runway lengths to accommodate heavier loads and longer stage lengths. Hot days or wet pavement impose further limitations by eroding aircraft takeoff and landing performance.
• Staff has previously worked with the North Central Texas Council of Governments (NCTCOG), TxDOT, and Collin County to identify and request alternative (non-local) funding sources which may be available to support the planned improvements for the Airport Runway Extension to the North to Enable Realignment of Spur 399 at McKinney National Airport
• In November 2020, the Regional Transportation Council (RTC) provided authorization to allocate Regional Toll Revenue (RTR) funding to the Airport Runway Extension Opportunity to the North Project in the amount of $30 million.
• RTR funding is managed by the TxDOT and includes surplus toll revenues which are collected and placed in a sub account to provide various transportation improvements in the region that those toll revenues are collected. Use of such surplus toll revenues for various transportation improvements are at the discretion of the regional representatives assigned and funding for projects is considered and approved by the RTC.
• An Advance Funding Agreement (AFA) has been developed for city execution which outlines the requirements and use of RTR funds for the project. The AFA does not require a local match requirement.
• The current estimated project cost including design / environmental services and construction cost is approximately $47.6 million.
• Project design is 90% complete, awaiting final environmental clearance. The draft Environmental Assessment is complete and currently under public review until May 30, 2022.
• Construction is currently anticipated to begin in January 2023 with a twenty-four (24) month duration.
• The FY22-26 Capital Improvement Program (CIP) includes Project AI2037 for these improvements.
FINANCIAL SUMMARY:
• Grant funding for the project is included in the FY22-26 Capital Improvements Plan.
• Under this agreement, the total “Local Participation” as shown in Attachment A of the AFA is $0. Local funding will be allocated under the CIP to cover project cost over the committed RTR funding.
BOARD OR COMMISSION RECOMMENDATION:
• N/A