Aviation Board Approves Change & Tasks Orders For Projects
August 12, 2020 at 2:46 a.m.
By David [email protected]
Nathan Lienhart, project manager for CHA, the Warsaw Municipal Airport’s aviation design and planning consulting firm, said on the runway project, “we were able to secure the funding needed at a little bit lower level than what we were hoping, but, nevertheless, we are still able to get the project completed to a level that we think is still in the spirit of the original plan and design.”
He said the Federal Aviation Administration (FAA) is funding $1,927,000 and the Indiana Department of Transportation Office of Aviation “have graciously contributed” $90,802. That gets the project to a total of $2,017,802 to complete the project.
“At this point, we’re simply waiting for the process to run its course with getting the grant in place. We submitted the grant application and we’ll also be submitting some certification documents that go along with that grant application,” Lienhart said.
He presented a change order for the board’s approval that “enables us to reduce the previously recommended amount for award for Phend & Brown.” At the July board meeting, there was a recommendation to award the project to Phend & Brown for $2,482,466.50.
“As a result of the lower-funded levels, we have effectively had to reduce that scope of work and the associated contract amount,” Lienhart said.
The change order reduces the contract amount for Phend & Brown to $1,729,311.76.
Board President Jay Rigdon asked Lienhart how does reducing the scope, in terms of what will be physically completed, affect the quality or life span of what will be done.
Lienhart said the bulk of what they were able to extract from the scope of work that contributed to the cost savings included several things such as earthwork. Rigdon asked, “You don’t believe that is going to significantly hamper any of the quality of the work that is going to get done?” Lienhart said no and Airport Manager Nick King said, “It’s going to improve it.”
After the aviation commissioners unanimously approved the emergency declaration change order to $1,729,301.76, Lienhart presented task order No. 1 for CHA.
“This is for the bid phase and construction phase services associated with the 1836 project,” Lienhart said.
The amount, which covers CHA’s bidding services, design changes and construction phase services, is $271,960 and is part of the federal grant. That task order was unanimously approved.
Lienhart then moved on to the runway 217 mitigation, also known as the AEP power line lowering project.
“We are continuing to have conversations regarding the funding shortfall on that. Even further, we have come to find that there is a state tax that has been included with AEP’s cost roughly in the amount of $766,000, that, through conversations with the INDOT Office of Aviation and the Department of Revenue, we’re finding that we believe that’s a potentially tax-exempt item. And that because this is a federally-funded project, and additionally put in place not because AEP is trying to improve their facilities, but because the airport and thereby the FAA and the state are initiating this development, that that tax should not be assessed,” Lienhart explained.
He said they’re trying to get that tax removed, which will eliminate the funding shortfall currently being experienced with the project.
Rigdon said he assumed AEP somehow made the determination that the tax applied and asked who was going to tell them that it didn’t. Lienhart said they’re working through the Department of Revenue to find the language that solidifies that.
Rigdon said he had the idea that it was a federal tax, but in actuality, it’s a state tax and “we believe we’re exempt because of the federal involvement.” Lienhart agreed and said the project was at the request of the airport, and therefore the FAA, and not AEP’s request.
“I don’t have to tell you guys that AEP did not want to do this project originally,” King said. “And so because we need this done – the airport is tax exempt, the state is tax exempt, the FAA is tax exempt – why would we need to pay a tax on a tax-exempt project?”
King said the tax may be under the Indiana Utility Regulatory Commission and they’re having discussions with them.
Lienhart said the other topic on the project they’re still trying to work through is the “applicability of the 90% versus 100% FAA contribution with the grant itself.”
He said the FAA has until April 2021 to program and fund the grant, but “we obviously want to be in much sooner than that and we are working to push this along as quickly as possible to get everything resolved and everything under grant.”
Finally, Lienhart presented task order No. 2 for CHA for construction and administration services associated with the AEP project totaling $155,570. The cost also is included in the project’s grant contingent on receipt of federal funds. The task order was approved.
Nathan Lienhart, project manager for CHA, the Warsaw Municipal Airport’s aviation design and planning consulting firm, said on the runway project, “we were able to secure the funding needed at a little bit lower level than what we were hoping, but, nevertheless, we are still able to get the project completed to a level that we think is still in the spirit of the original plan and design.”
He said the Federal Aviation Administration (FAA) is funding $1,927,000 and the Indiana Department of Transportation Office of Aviation “have graciously contributed” $90,802. That gets the project to a total of $2,017,802 to complete the project.
“At this point, we’re simply waiting for the process to run its course with getting the grant in place. We submitted the grant application and we’ll also be submitting some certification documents that go along with that grant application,” Lienhart said.
He presented a change order for the board’s approval that “enables us to reduce the previously recommended amount for award for Phend & Brown.” At the July board meeting, there was a recommendation to award the project to Phend & Brown for $2,482,466.50.
“As a result of the lower-funded levels, we have effectively had to reduce that scope of work and the associated contract amount,” Lienhart said.
The change order reduces the contract amount for Phend & Brown to $1,729,311.76.
Board President Jay Rigdon asked Lienhart how does reducing the scope, in terms of what will be physically completed, affect the quality or life span of what will be done.
Lienhart said the bulk of what they were able to extract from the scope of work that contributed to the cost savings included several things such as earthwork. Rigdon asked, “You don’t believe that is going to significantly hamper any of the quality of the work that is going to get done?” Lienhart said no and Airport Manager Nick King said, “It’s going to improve it.”
After the aviation commissioners unanimously approved the emergency declaration change order to $1,729,301.76, Lienhart presented task order No. 1 for CHA.
“This is for the bid phase and construction phase services associated with the 1836 project,” Lienhart said.
The amount, which covers CHA’s bidding services, design changes and construction phase services, is $271,960 and is part of the federal grant. That task order was unanimously approved.
Lienhart then moved on to the runway 217 mitigation, also known as the AEP power line lowering project.
“We are continuing to have conversations regarding the funding shortfall on that. Even further, we have come to find that there is a state tax that has been included with AEP’s cost roughly in the amount of $766,000, that, through conversations with the INDOT Office of Aviation and the Department of Revenue, we’re finding that we believe that’s a potentially tax-exempt item. And that because this is a federally-funded project, and additionally put in place not because AEP is trying to improve their facilities, but because the airport and thereby the FAA and the state are initiating this development, that that tax should not be assessed,” Lienhart explained.
He said they’re trying to get that tax removed, which will eliminate the funding shortfall currently being experienced with the project.
Rigdon said he assumed AEP somehow made the determination that the tax applied and asked who was going to tell them that it didn’t. Lienhart said they’re working through the Department of Revenue to find the language that solidifies that.
Rigdon said he had the idea that it was a federal tax, but in actuality, it’s a state tax and “we believe we’re exempt because of the federal involvement.” Lienhart agreed and said the project was at the request of the airport, and therefore the FAA, and not AEP’s request.
“I don’t have to tell you guys that AEP did not want to do this project originally,” King said. “And so because we need this done – the airport is tax exempt, the state is tax exempt, the FAA is tax exempt – why would we need to pay a tax on a tax-exempt project?”
King said the tax may be under the Indiana Utility Regulatory Commission and they’re having discussions with them.
Lienhart said the other topic on the project they’re still trying to work through is the “applicability of the 90% versus 100% FAA contribution with the grant itself.”
He said the FAA has until April 2021 to program and fund the grant, but “we obviously want to be in much sooner than that and we are working to push this along as quickly as possible to get everything resolved and everything under grant.”
Finally, Lienhart presented task order No. 2 for CHA for construction and administration services associated with the AEP project totaling $155,570. The cost also is included in the project’s grant contingent on receipt of federal funds. The task order was approved.
Have a news tip? Email [email protected] or Call/Text 360-922-3092