TITLE
Recommendation to authorize City Manager to execute all necessary documents with the Federal Aviation Administration (FAA) to increase the existing Passenger Facility Charge (PFC) from $3.00 to $4.50 per enplaned passenger, and to accept, implement, administer, collect and expend the new PFC for the design of the terminal improvements with "impose and use authority" and for construction of the terminal improvements with "impose only authority"; and increase appropriation in the amount of $3,900,000 in the Airport Enterprise Fund (EF320) and the Department of Public Works (PW). (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 $4.1 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.
On April 18,...
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