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Home My WebLink About145-09 RESOLUTIONRESOLUTION NO. 145-09 A RESOLUTION APPROVING A BUDGET ADJUSTMENT RECOGNIZING THE RECEIPT OF INSURANCE REIMBURSEMENT AND ESTABLISHING A PROJECT BUDGET TO TRACK EXPENSES RELATED TO THE DEMOLITION, CLEANUP AND CONTINGENCY REPLACEMENT OF THE HANGAR BUILDING AT DRAKE FIELD, THAT WAS DESTROYED BY FIRE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment recognizing the receipt of insurance reimbursement and establishing a project budget to track expenses related to the demolition, cleanup and contingency replacement of the hangar building at Drake Field, that was destroyed by fire. PASSED and APPROVED this 7th day of July, 2009. APPROVED: IP By: LIONE D JORDA'' ayor ATTEST: By: t kAci SONDRA E. SMITH, City Clerk/Treasurer 00 ,0 U11111/0 ,,‘a -wrR ac;rY p,,•,G�: . av •-70•� FAYETTEVILLE • 17, Ray M. Boudreaux Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 7/7/2009 City Council Meeting Date Agenda Items Only Aviation Division Action Required: Transportation Department Approve a Budget Adjustment recognizing receipt of Insurance reimbursement and to establish a Project Budget to track expenses related to the demolition, cleanup and contingency replacement of the Hangar building, 4240 S. School, that was destroyed by fire. Contact: Ray Boudreaux, extension 642. 350,870.00 Cost of this request 5550.3960.5804,00 Account Number Category / Project Budget 09021 1 $ Project Number Budgeted Item Depa ment I irector City Attorney Finande and Internal Services Director Hangar Fire - Airport Program Category / Project Name Airport Capital Exp Funds Used to Date Program I Project Category Name Airport Remaining Balance Fund Name Budget Adjustment Attached X Previous Ordinance or Resolution # Date Original Contract Date: Original Contract Number: ate e Received in Mayor's Office Comments: Revised January 15, 2009 ARKANSAS City Council Meeting of: July 7, 2009 Agenda Item Number: AVIATION DIVISION FAYETTEVILLE EXECUTIVE AIRPORT • DRAKE FIELD CITY COUNCIL AGENDA MEMO/STAFF CONTRACT REVIEW MEMO TO: Mayor Jordan THRU: Chief of Staff THRU: Staff/Contract Review Committee THRU: Terry Gulley, Transportation DirectorC)154.' FROM: Ray M. Boudreaux, Aviation DATE: June 19, 2009 SUBJECT: Approve a Budget Adjustment to recognize the revenue received from insurance proceeds from the fire at Fayetteville Executive Airport, Drake Field and to establish a project budget to pay for cleanup, fencing and the eventual replacement of the hangar. Signature of the Mayor. RECOMMENDATION: Approve a project budget to pay for the cleanup, security fencing and the potential replacement of the hangar destroyed by fire at the Fayetteville Executive Airport, Drake Field. This new budget must be established by the City Council to allow for these and other associated expenses caused by the fire. Signature of the Mayor. BACKGROUND: $350,870.00 was received from Traveler's Insurance Company following the complete destruction of the hangar at the airport. The insurance proceeds paid were the present value of the building plus the cost of temporary fencing to secure the site pending cleanup, and cleanup of the site. This budget is necessary to reserve the funds for the eventual replacement of the building and to pay for these additional expenses not budgeted in the approved airport budget. BUDGET IMPACT: This item establishes a new budget with the insurance proceeds received from the destroyed hangar at the airport. Immediate purchases against this new budget will be cleanup of the site ($8,000.00), temporary fencing ($2,870.00) and security fencing to close the gap between the remaining hangars (approximately $2,500.00). The remainder will remain in the budget for the potential replacement hangar. Attachments: Staff Review Budget Adjustment 4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE AR 72701 479.718.7642 • 479.718.7646 FAX • www.accessfayetteville.org/government/aviation airporteconomic_development@ci.fayetteville.ar.us RESOLUTION NO. A RESOLUTION APPROVING A BUDGET ADJUSTMENT RECOGNIZING THE RECEIPT OF INSURANCE REIMBURSEMENT AND ESTABLISHING A PROJECT BUDGET TO TRACK EXPENSES RELATED TO THE DEMOLITION, CLEANUP AND CONTINGENCY REPLACEMENT OF THE HANGAR BUILDING AT DRAKE FIELD, THAT WAS DESTROYED BY FIRE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment recognizing the receipt of insurance reimbursement and establishing a project budget to track expenses related to the demolition, cleanup and contingency replacement of the hangar building at Drake Field, that was destroyed by fire. PASSED and APPROVED this 7t1, day of July, 2009. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer THE TRAVELERS - HO MAJOR CASE - PRO M506A B MARKOWITZ 1 TOWER 50 HARTFORD CT 06783 UA01587 CITY OF FAYETTEVILLE ATTN: RAY BOUDREAUX 4500 S. SCHOOL RD FAYETTEVILLE AR 72701 891A 78900061 Cr E) TRAVELERS JARK" r// w -.._ RT DATE: 05/14/09 LOSS DATE: 04/18/09 FILE NUMBER: 877 FR A5N4315 R AGENT: REGIONS INSURANCE INC ACCOUNT NAME: CITY OF FAYETTEVILLE THE TRAVELERS INDEMNITY COMPANY EXPLANATION OF PAYMENT BUILDING $350870.00 TOTAL PAID $350870.00 R EC E VE q KV POLICY LIMITS ON HANG ER PLUS FENCE COST FOR ADDITIONAL INFORMATION, CONTACT: TIMOTHY ROMERO AT (913)402-9415 {4001649 — DETACH CHECK UNSUMM .0211 OVRPUNS2.121: DETACH CHECK Citibank. N.A. TRAVELERS J� One Penns Way New Castle DE 19720 1 TOWER SQ HARTFORD CT 06183 (913)402-9415 DATE ACCOUNT NUMBER FILE NUMBER 05/14/09 J99 877 FR A5N4315 R THREE HUNDRED FIFTY THOUSAND EIGHT HUNDRED SEVENTY AND 00/100 PAY CITY OF FAYETTEVILLE TO THE 113 W MOUNTAIN ST ORDER OFFAYETTEVILLE AR 72701 301851 UA01587 891A 78900061 V311 4 THIS CHECK HAS A RED BACKGROUND VOID IF NOT PRESENTED WITHI ONE YEAR AFTER DATE OF /SSL PAY: $**350,870.00 AUTHORIZED SIGNATURE ihIIIIIIInnlnnillldnlllnnilillnilnhullnnhnndllnlillln611n6mLllluhL1116iImd6n,61dIIIIllulu1116dlduluhdldl 1111811811lllllllllllllllllnlnhdn6dIIIIILdn6dnlnlliIIIIII1116d116ddIIdIIIIdIIIIIIIIIIdIIIIIIIIIIIIIIIIIIIIhI6dIIIdIIIIIilddnnln6dnIIIIIIIhnIIIIIIIIIIInI 118111IIIIiL1111116n1 TR n• vncInnnc Lu• L inn an41• 117 C a 1 a C "20 City of Fayetteville, Arkansas Budget Adjustment Form Budget Year 2009 Department: General Government Division: Aviation & Economic Development Program: Airport Capital Expense Date Requested 7/7/2009 Adjustment Number Project or Item Added/Increased: $350,870 in the Building Costs account Project or Item Deleted/Reduced: None. Recognize revenue received from Travelers insurance company. Justification of this Increase: Will allocate a project budget necessary for expenses associated with the demolition and cleanup of the site debris. The remaining budget will be reserved and tracked for the future disposition of the building/site. Justification of this Decrease: Insurance Company paid the full policy limit on the destroyed hangar. Account Name Building Costs Account Name Increase Budget Account Number Amount Project Number 5550 3960 5804 00 350,870 09021 1 Decrease Budget Account Number Gain/loss sale of assets 5550 0955 6881 02 Division Head Budget Director Director /7 0/Date 4'104 QL (L,..„ 4 -(7-14d? Fina . e DiYector Date -/7-x Date 4A• 00' ae t1/9� Amount Project Number 350,870 09021 1 Budget & Research Use Only V.090403 Type: A B C D E Requested By General Ledger Date Posted to General Ledger Initial Date