TITLE
Recommendation to authorize City Manager to execute all necessary documents to apply to the Federal Aviation Administration for a new Passenger Facility Charge (PFC) application and to accept, implement, administer, collect and expend the new PFC revenue related to the Airport Capital Improvement Program 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 imposition and use of PFCs through an application process. PFCs are allowed only for approved airport capital project costs that meet the program objectives related to safety, security, capacity, noise mitigation or competition. PFCs are considered to be local charges and are in place at most commercial service hub airports.
On May 20, 2003, the City Council authorized the submission of a PFC application to commence imposition and use of PFCs at the Long Beach Airport. The program currently collects PFC revenue at the federal maximum allowable level of $4.50 per enplaned passenger. Since the program was implemented at the Airport, PFC revenue has been approved to fund portions of airfield projects, security system upgrades and acquisition of aircraft rescue and fire fighting vehicles. Currently, the Airport annually collects PFC revenues of approximately $6.3 million.
On June 20, 2006, the City Council certified the Environmental Impact Report (EIR) for the Airport Terminal Improvement Project. On April 24, 2007, the City Council authorized the preparation of final plans and specifications, cost estimates and a financing plan for the construction of an Airport Terminal Improvement Project consistent with the projects identified as part of the Airport EIR certification. ...
Click here for full text