TITLE
Recommendation to authorize City Manager to execute all necessary documents to apply to the Federal Aviation Administration (FAA) for new Passenger Facility Charge (PFC) program, and to accept, implement, administer, collect and expend the new PFCs related to the Airport Capital Improvement Program (CIP), within the existing authorized PFC level of $4.50 per enplaned passenger. (District 5)
DISCUSSION
Federal regulations allow local airport proprietors to charge a Passenger Facility Charge (PFC), which is a "per enplaned passenger" fee of up to $4.50 for expenditure on eligible non-revenue generating airport capital improvements. The Federal Aviation Administration (FAA) must approve the use of PFCs through an application process. PFCs are in place at the majority of commercial service airports.
On May 20, 2003, the City Council authorized the City Manager to administer and execute all necessary documents to collect, accept and expend PFC revenue for City Council-approved Airport capital improvement projects at a $3.00 per passenger level. This rate was increased to the $4.50 per passenger level following City Council approval on September 4, 2007. PFC collection, at the new $4.50 level, resulted in revenue of approximately $6 million in 2008.
Since the program was implemented in 2003, PFC revenue has been used to fund portions of runway rehabilitations, taxiway reconstruction, security system upgrades, and acquisition of Aircraft Rescue and Fire Fighting vehicles. Future PFC revenue has been approved for additional Airport projects, including air carrier ramp reconstruction, rehabilitation of several taxiways and terminal improvements.
FAA rules allow airports collecting PFCs to amend their program to reflect new project needs and changing cost requirements. The Airport proposes to submit an application for the additional projects listed below:
• Airfield Pavement and Infrastructure. Projects include various taxiway and runway improvements funded...
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