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  Consent-General Government   #   12.    
Board of Supervisors County Administrator  
Meeting Date: 01/15/2019  
Brief Title:    Approve Loan Application for CalTrans Loan for Taxiway repairs
From: Mindi Nunes, Assistant County Administrator, CAO
Staff Contact: Mindi Nunes, Assistant County Administrator, County Administrator's Office, x8426

Subject
Approve submittal of an application to Caltrans for a $258,700 loan to complete needed airport pavement repairs. (No general fund impact) (Nunes)
Recommended Action
  1. Authorize loan application submittal for $258,700 to the Caltrans Aviation Division for necessary Airport pavement repairs and improvements (Attachment A); and
     
  2. Authorize the Assistant County Administrator to execute the loan agreement and related documents.
Strategic Plan Goal(s)
Operational Excellence
 
Reason for Recommended Action/Background
For several years the county-owned portions of the taxiway/apron that serves Yolo Aviation and several other major lessees has been in disrepair with potholes and/or paved with gravel. These pavement surfaces can make aircraft travel dangerous and exposes the County to potential liability in the event of aircraft damage or injury.  In 2017 the County temporarily filled the worst potholes, but now needs to resurface the area and add pavement to the gravel surfaces.  Maintenance and upkeep of these taxiways are a requirement of the County included in each of the tenant leases.

The Federal Aviation Administration (FAA) does not offer grants for its lower priority projects such as apron paving in hangar areas, so repaving is the responsibility of the County. The County’s Airport Enterprise Fund does not have enough funds to cover these project costs.  However, CalTrans offers a Local Airport Loan Program with interest rates that match the latest California General Obligation Bond sale interest rate, currently 3.9%. CalTrans requires annual payments, which is estimated to be $21,101 per year. The CalTrans interest rate of 3.9% is favorable compared to other financing sources available to the County. The County has received preliminary estimates of the interest rate for a June 2019 bond issuance for capital project, which is project to be 4.82% for a 20 year bond. In addition, that type of bond financing requires property to be pledged as collateral. 

The Airport has commissioned an engineered repaving plan and has received two bids for the work.  The lower of the two bids puts the anticipated project cost for repaving all four taxiways at $407,180. However, the Airport Enterprise Fund can only support payments for a loan of $258,700 at this time, which is enough to complete upgrades of Taxiways A and C at $263,100 plus contingencies and project management costs. On November 20, 2018, the Board approved a contract with the low bidder, Teichert and Sons, for repaving taxiways A and C.  Should the loan be approved by CalTrans, the project will commence at the conclusion of the rainy season, likely in February.

The project is in the County’s current Capital Improvement Plan and is listed on the Caltrans Capital Improvement Plan for this airport as “EAA/County Apron Rehabilitation” and “Design and Construct North Apron Expansion”.

Since this project is exclusively repair of existing pavement or paving of developed gravel surfaces, the project is exempt under both CEQA and NEPA. 
 
Collaborations (including Board advisory groups and external partner agencies)
Community Services, General Services
Competitive Bid Process
Bids for the project were solicited (as described above) in accordance with County Purchasing policies. 

Fiscal Information
Fiscal impact (see budgetary detail below)
Fiscal Impact of this Expenditure
Total cost of recommended action $358,717
Amount budgeted for expenditure $0
Additional expenditure authority needed $0
On-going commitment (annual cost) $21,101
Source of Funds for this Expenditure
General Fund $0
Airport Enterprise fund $21,101
Further explanation as needed
The loan of $258,700 would be paid back annually at an estimated amount of $21,101 per year for 17 years, or a total of $358,717 including interest costs. Amounts necessary to make annual loan repayments will be included in the budget in future years.
Attachments
Att. A. Loan Application

Form Review
Inbox Reviewed By Date
Elisa Sabatini Elisa Sabatini 01/03/2019 09:42 AM
Financial Services Tom Haynes 01/07/2019 05:53 PM
County Counsel Phil Pogledich 01/08/2019 03:35 PM
Form Started By: Mindi Nunes Started On: 12/14/2018 02:29 PM
Final Approval Date: 01/08/2019
Level double AA conformance,
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