Long Beach, CA
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File #: 20-0500    Version: 1 Name: LBA - Submit an application to the FAA for additional Passenger Facility Charges (PFC) D5
Type: Agenda Item Status: Approved
File created: 5/8/2020 In control: City Council
On agenda: 6/2/2020 Final action: 6/9/2020
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)
Sponsors: Long Beach Airport
Attachments: 1. 060220-R-23sr.pdf, 2. 060920-R-16sr.pdf, 3. 060920-R-16 Corresp.Tesch.pdf
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 (City), 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. Use of PFCs is 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 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. In April 2020, the Airport submitted its 15th PFC application to the FAA and was approved in May 2020 to fund improvements to Taxiway C and Taxiway D at the Airport.

The Airport typically collects PFC revenues of approximately $8 million annually, which are based on annual passenger enplanement activity levels. PFC revenues have been impacted by fluctuations in passenger activity in recent month...

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