TITLE
Recommendation to authorize City Manager, or designee, to execute all necessary documents to submit an application to the Federal Aviation Administration for additional Passenger Facility Charges (PFC); and if approved, accept, implement, administer, collect, and expend the additional PFCs related to the Airport Capital Improvement Program, within the existing authorized PFC level per enplaned passenger. (District 5)
DISCUSSION
Federal regulations allow airport sponsors, such as the City of Long Beach, to impose 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 fee is charged by the airline at the time of ticket purchase and remitted to the City. 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 the vast majority of commercial service hub airports.
On May 20, 2003, the City Council authorized the submission of a PFC application to commence the imposition and use of PFCs at the Long Beach Airport (Airport). Since then, several applications have been submitted for Airport capital projects. The PFC was a key funding source for the Terminal Area Modernization Program and continues to be used to pay debt service on outstanding bonds. Most recently, an application was submitted and approved in 2014 to fund improvements to Runway 7L-25R, the Airport apron area, and other airfield infrastructure. The Airport collects PFC revenues of approximately $8 million annually, based on passenger enplanement activity levels of the Airport.
The Airport proposes to submit an application for the additional projects listed below:
· Taxiway C Improveme...
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