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