Subject:
Title
Resolution authorizing continuation of a $4.50 Passenger Facility Charge at the St. Pete-Clearwater International Airport.
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Recommended Action:
Recommended Action
Adopt a resolution authorizing St. Pete-Clearwater International Airport (PIE) to submit Passenger Facility Charge (PFC) Application #5 to the Federal Aviation Administration (FAA) to allow continued collection of the PFC fees to fund FAA approved projects. In addition, obtain Chairman’s signature on the PFC Application.
• The total PFC revenue to be collected in the new application, through February 1, 2025, is $6.66M. Funding supports projects such as the purchase of two new Aircraft Rescue and Firefighting vehicles to maintain PIE’s safety index and the reconstruction of the decommissioned Runway 09/27 into a new Taxiway.
• The FAA’s PFC program allows the collection of PFC fees up to $4.50 for every enplaned passenger at commercial service airports to fund FAA approved projects that enhance safety, security, or capacity.
• Submitting a new PFC application will ensure that PIE can continue imposing a $4.50 PFC on each enplanement and can continue collection to fund FAA eligible improvements to PIE’s terminal and airfield.
Body
Strategic Plan:
Foster Continual Economic Growth & Vitality
4.4 Invest in infrastructure to meet current and future needs
Deliver First Class Services to the Public and Our Customers
5.2 Be responsible stewards of the public’s resources
Summary:
Submitting a new PFC application will ensure that PIE can continue imposing a $4.50 PFC on each enplanement and can continue collection to fund PFC eligible improvements to PIE’s terminal and airfield.
PIE has been collecting PFCs since its first application was approved by the FAA in 2008.
Background Information:
The FAA’s PFC program allows the collection of PFC fees up to $4.50 for every enplaned passenger at commercial airports controlled by public agencies. PFCs are capped at $4.50 per flight segment. Airports use these fees to fund FAA approved projects that enhance safety, security, or capacity.
PIE keeps $4.39 of the revenue collected; the remaining $0.11 is retained by the airlines for administrative costs.
This resolution authorizes PIE to submit its fifth application to the FAA to continue collecting PFCs for the purchase of two new ARFF vehicles and the reconstruction of the decommissioned Runway 09/27 into a new Taxiway. Construction and delivery of these items must begin by two years from the application’s effective date.
On September 16, 2008, the Board of County Commissioners (Board) approved Resolution 08-151 which authorized PIE to submit its first application to the FAA for the imposition and collection of a new PFC fee in the initial amount of $2.6M to fund eligible improvements to the airfield and terminal. The PFC Application was approved by the FAA on December 19, 2008.
Since the initial PFC Application was approved by the FAA, there have been four amendments for eligible projects of similar nature. The FAA now prefers the submission of a new application, as opposed to amendments. Application #3 was approved by the Board on February 23, 2016 and then approved by the FAA in summer 2016. Application #4 was approved by the Board in the fall of 2018, and only has $1.3M remaining in authorized collections, which is why another application is necessary to avoid a lapse of PFC collections. It usually takes between 6-9 months for the FAA to review and approve a PFC application.
PFC projects that have been funded in the past have been terminal renovations, reconstruction of PIE’s parking apron, a new master plan, purchase of an airfield sweeper, improvements to PIE’s custom facility, rehabilitation of runways and taxiways, and improvements to PIE’s security system.
PFC applications and amendments are collection amount driven, not time driven. This means that another PFC application will have to be submitted approximately nine months from the time that PIE estimates the $6.66M will be collected.
Fiscal Impact:
The total PFC revenue to be collected in the new application is $6,660,000.00. The expiration date for this application is anticipated on or about February 1, 2025 based on historical collections. When the application and projects are approved by the FAA, the funding sources for the approved projects will be adjusted or programmed during the FY22 budget development process to reflect the PFC revenue.
Staff Member Responsible:
Thomas R. Jewsbury, Director, St. Pete-Clearwater International Airport
Partners:
FAA
Attachments:
Resolution
PFC Application Form
Proposed Project Descriptions