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Item No. 23 <br />memorandum <br />TO: Mayor & City Council <br />FROM: John Godwin, City Manager <br />SUBJECT: AIRPORT HANGAR <br />DATE: December 6, 2016 <br />BACKGROUND: We have been working with TXDOT Aviation for more than two years to <br />construct a new hangar at Cox Field. Several weeks ago, TXDOT received and opened several <br />bids for the construction scheduled to begin in early 2017. Unfortunately, the bids were higher <br />than we hoped. Therefore TXDOT issued a conditional award of a construction contract to <br />Mitchell Enterprises for the construction of a four -unit T- hangar and corresponding pavement. <br />The total project cost, including engineering, contingency, etc. is $1,104,261.83. The city has <br />already paid its share of $110,666; the federal (FAA) share will be $993,835.65. TXDOT <br />manages this project on our behalf. <br />STATUS OF ISSUE: At last month's airport advisory board meeting, the board wanted us to put <br />the project on hold and ask the council for another $406,910.36 so we can build a ten -unit <br />hangar. I think we all agree it would be a great improvement, but I do not know where we would <br />get that kind of unbudgeted money. The better way to proceed is probably to build what we have <br />available now, and try to expand the structure later. <br />BUDGET: No additional monies are funded for this project. <br />RECOMMENDATION: Direct staff if a project change is required. <br />