TITLE
Recommendation to increase appropriations in the Airport Fund (EF 320) in the Airport Department (AP) by $10,697,988 for Passenger Facility Charges approved by the Federal Aviation Administration in Fiscal Year 2015 for various capital improvement projects.
(District 5)
DISCUSSION
The Long Beach Airport (Airport) utilizes a Passenger Facility Charge (PFC) to fund Capital Improvement Projects, including the local match for projects funded by Airport Improvement Program (AlP) grants. Federal regulations allow local airport sponsors to charge PFC, which is a fee of up to $4.50 "per enplaned passenger" 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.
On November 5, 2013, the City Council authorized the City Manager to apply for and to accept, implement, administer, collect and expend new PFC. Application No. 14-07-C-00- LGB, for an amount of $10,697,988, was approved by the FAA on October 24, 2014. Funding included in the application was the City's share (local match plus additional funds) for various projects. Please see Attachment for a list of the approved projects.
This matter was reviewed by Deputy City Linda T. Vu on November 3, 2014 and Budget Management Officer Victoria Bell on November 6,2014.
TIMING CONSIDERATIONS
City Council action on this matter is requested on November 18, 2014, to allow the Airport to utilize the approved PFC funds to reimburse previous costs, as most of the approved projects commenced with Airport capital.
FISCAL IMPACT
To utilize these PFC funds, which have now been fully approved by City Council and the FAA, an increase in appropriation is requested in the Airport Fund (EF 320) in the Airport Department (AP) by $10,697,988.
The projects included in these PFC programs will result in a positive local job impact.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submi...
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