TITLE
Recommendation to authorize City Manager to execute all necessary documents to amend the existing Passenger Facility Charge (PFC) program previously approved by the City Council and Federal Aviation Administration (FAA) and to accept, implement, administer, collect and expend a new PFC program related to the Airport Capital Improvement Program (CIP), all within the existing $3 per enplaned passenger authorized PFC level. (District 5)
DISCUSSION
On January 7, 2003, the Department of Public Works submitted an application to the FAA for authority to implement a $3.00 PFC as authorized by Title 14, Part 158, of the Code of Federal Regulations, adopted May 22, 1991. On May 20, 2003, City Council authorized the City Manager to administer and execute all the necessary documents to collect, accept and expend PFC revenue for City Council-approved Airport capital improvement projects. Current federal regulations allow local airport proprietors to charge a "per enplaned passenger" fee of up to $4.50 for expenditure on eligible nonrevenue generating airport capital improvements. PFCs are in place at the majority of commercial service airports. Long Beach Airport requested and was authorized PFCs in the amount of $3.00 per enplaned passenger, which is collected by the air carriers.
Beginning in August 2003, the Airport PFC collection has resulted in average revenue of approximately $4.2 million annually.
Since the program was implemented, PFC revenue has been used to fund portions of the Runway 12-30 rehabilitation, security system upgrades, rehabilitation of several taxiways, airfield road improvements and the acquisition of an Aircraft Rescue and Fire Fighting vehicle (ARFF). FAA rules allow airports collecting PFCs to amend their program to reflect changing cost requirements and project needs.
Increased usage, as well as heavy rains in the winter of 2005, lead to the accelerated deterioration of the airfield pavement, including critical taxiways. Additionally, c...
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