TITLE
Recommendation to authorize City Manager to execute all documents necessary to amend the existing Passenger Facility Charge program previously approved by the City Council and Federal Aviation Administration, and to accept, implement, administer, collect and expend a new Passenger Facility Charge program related to the Airport Capital Improvement Program, all within the existing authorized Passenger Facility Charge 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 (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. Future PFC revenue has been approved for additional Airport projects, including air carrier ramp reconstruction, rehabilitation of several taxiways, and the construction of terminal improvements. Currently, the Airport annually collects PFC revenues of approximately $6 million.
FAA rules allow airports collecting PFCs to amend their program to reflect new project needs and changing cost requi...
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