Staff recommends that Council approve Amendment 32 Agreement for Engineering Services for a contract cost of $285,130.00.

Amendment 32 allows our consultant to proceed with the design and engineering of the airport new taxilane. The new taxilane will create access to an undeveloped section of the airport to allow hangar construction and improved airport facilities. Once the design plans are completed, they may be reviewed by FAA to allow us to advertise the project for construction. Ninety-five percent of the construction costs will be paid from FAA grants. 

The airport has a severe shortage of hangar space. Hailstorms and weather can destroy an aircraft and investors of aircraft need a safe place to store their investment. With additional hangar space, more aircraft will be based at the airport which will increase airport revenues through fuel flowage fees and grant eligibility. Aircraft services provided for aircraft owners will add jobs to the local economy. Construction of this taxilane is in our Capital Improvement Plan (CIP) and a part of our new Airport Master Plan. An Independent Fee Estimate (IFE) has been completed and an acceptable comparison made. The environmental work has also been approved. Amendment 32 will allow our consultant to complete their design work. 

The project cost is estimated at $1,600,000, which will be covered 95% by FAA Airport Improvement Program (AIP) funds and 5% by airport revenues. The $285,130 in the design work of Amendment 32 will be reimbursed from the grant. This project will develop increased airport revenues through hangar development, leases, and an increased number of aircraft based at the Billings Logan International Airport. 

• Approve consultant Amendment 32 and allow the design of a new airport taxilane.
• Not approve Amendment 32 and provide direction to staff on how to proceed.