Staff recommends that the City Council approve and award the Airport's West Taxilane Utility Project to Hample Excavation, Inc. for $500,054.

Included in the Airport's Capital Improvement Program for Fiscal Year 2022 is the funding for the West Taxilane Utility Project.  This project will develop a new area for the construction of larger aircraft hangars on the west end of the Airport. Land at the Airport for future growth and expansion is limited due to the existing buildings and infrastructure, the large airfield consisting of many runways and taxiways, cargo ramps, safety clearances for commercial aircraft required by the Federal Aviation Administration, and many other geographical issues such as elevation changes, the Rimrocks, etc. The few locations remaining that have room for development must be maximized and utilized to their full potential. The Airport regularly receives inquiries from businesses asking whether there are hangars for rent or land available to build on. Although the Airport does not currently own any hangars that are available for rent, a section of land on the west end is available for large commercial aircraft hangars. In 2016, the Airport constructed a taxilane and ramp for this future development, and the water, sewer, and storm water infrastructure for the hangars on the west side of the new taxilane.  Recently, there has been a lot of interest from companies wanting to build larger 120' x 100' commercial hangars and the developed west side of the taxilane is now almost full.  Subsequently, the Airport now needs to develop the east side of the taxilane for additional hangars.  This project will require the contractor to install all necessary utilities including an 8-inch sanitary sewer extension, 12-inch water main extension, and 18-inch storm drain improvements.  In addition to the utility work, the contractor will also perform dirt work, pavement removal and installation, construction of a new access road and other miscellaneous work. This utility project will take place as soon as the weather permits so that this new hangar development will be available this Summer for interested parties.

This project was advertised in the Yellowstone County News on February 18, 25, and March 4, 2022, and posted on the City and Airport's Websites.  On March 8, 2022, the following bids were received:
 

CONTRACTOR	BID
Hample Excavation, Inc.	$500,054
COP Construction	$690,234
Western Municipal, Inc.	$907,462

City Council may:

• Approve the award of the West Taxilane Utility Project to Hample Excavation, Inc. for $500,054; or
• Decline to approve the award, reject all bids, and delay the project.

The low bid for this project is $500,054.  Funding for this project is available in the Airport's Capital Account.  The Airport anticipates that once all lots are leased, it will take approximately 12 years to recoup its investment.  Thereafter, the combined revenues for the next 20 years will exceed $2,000,000 (using a CPI-U of 3.5%) providing a rate of return over the 32 years of nearly 5%.