Item 6: ConnectOregon Grant Application for Air Cargo Project

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L: S0601236.doc\M060123\Agendas Council \CMO\ RELATED COUNCIL GOALS The related Council Goals include: ? Sustainable Development ? Effective Municipal Government ? Fair, Stable and Adequate Financial Resources. The efficient movement of goods and services in and out of the region is highly important to local businesses ranging from manufactured products to perishable items, to time-sensitive document deliveries. Air cargo provides an alternative mode as opposed to ground transportation. The proposed project will help sustain and grow local jobs and create employment during construction. The development improves safety at the airport and creates opportunity for new revenue that will help the airport remain financially self-sufficient. RELATED CITY POLICIES The related Capital Improvement Program policies include: ? The City will plan for capital improvements over a multi-year period of time. The Capital Improvement Program will directly relate to the long-range plans and policies of the City. Operating funds to maintain capital improvements and to fund additional staff and service needs must be estimated and identified prior to making the decision to undertake specific capital improvements. ? Funding sources that have been identified for a specific project and approved with adoption of the Capital Improvement Program shall remain the funding source for that project unless a specific exception is directed by the Council The air cargo project is already outlined and graphically depicted in the adopted 2000 Eugene Airport Master Plan, a refinement of the Metro Area General Plan. In addition, the air cargo project is currently identified in the FY06-FY11 Capital Improvement Program (CIP) in FY07 for $980,000. The difference between the current proposal and that which is identified in the CIP is due to the limitations of the FAA grant eligibility. The proposed ConnectOregon funding allows the scope of the project to include additional components not previously included such as the distribution facility, site utilities, and a wider ramp surface. COUNCIL OPTIONS The City Council may: 1.Approve the submittal of a ConnectOregon grant application for the air cargo project. 2.Not approve the submittal of a ConnectOregon grant application for the air cargo project. 3.Modify the scope of the air cargo project and approve submittal of a revised ConnectOregon grant application. CITY MANAGER’S RECOMMENDATION The City Manager recommends that the City Council approve the submittal of a ConnectOregon grant application for the air cargo project. L:\CMO\2006 Council Agendas\M060123\S0601236.doc