Subject:
Title
Resolution authorizing continuation of a $4.50 Passenger Facility Charge and to amend past applications at the St. Pete-Clearwater International Airport.
label
Recommended Action:
Recommended Action
Adopt a resolution authorizing St. Pete-Clearwater International Airport (PIE) to submit Passenger Facility Charge (PFC) Application #8 to the Federal Aviation Administration (FAA) to allow continued collection of the PFC fees to fund FAA approved projects. PIE also is filing to amend past PFC Applications #3, #6, and #7. In addition, obtain the Chairman’s signature on the PFC application and amendments when the FAA indicates the application and amendments are substantially complete.
• The total PFC revenue to be collected in the new application (#8) through July 1, 2029, is $15,906,436.00. Funding supports projects such as the common use terminal equipment for passenger processing; replacement of PIE’s rotating beacon; replacement of a terminal building chiller; rehabilitation of Taxiways “A”, “G”, “A5”, “A6” and “A7”; and the rehabilitation of a section of Runway 04/22.
• Amendments to past PFC Applications #3, #6, and #7 are necessary to increase or decrease budgets on projects to allow the applications to be administratively closed out and have project budgets amended with the FAA.
• 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.
• The draft resolution and the application form must be approved and signed by the Chairman before the application is submitted to the FAA.
• These revenues are included in the Fiscal Year (FY) 2024 Adopted Budget and the FY25 Proposed Budget in the Airport Revenue and Operating Fund.
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’ eighth application to the FAA to continue collecting PFCs for the FAA-approved projects mentioned above. Construction and delivery of these items must begin within two years from the application’s effective date.
On September 16, 2008, the Board of County Commissioners 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 seven additional applications for eligible projects of similar nature. It usually takes between six to nine months for the FAA to review and approve a PFC application.
PFC applications are collection amount driven, not time driven. This means that another PFC application must be submitted to avoid the cessation of collections by the FAA. Because of the record-breaking passenger traffic, we have experienced in the past years, the collection pace has been much faster than anticipated. We are now collecting approximately $6M a year in PFCs.
Fiscal Impact:
The total PFC revenue to be collected in the new application (#8) is $15,906,436.00. The expiration date for this application is anticipated on or about July 1, 2029, based upon historical collections. When the application and projects are approved by the FAA in the next few months, the funding sources for the approved projects will be adjusted or programmed in our CIP during the budget development process to reflect the PFC revenue.
The proposed amendments to past applications are as follows:
PFC Application #3 - Reduce by $3,803,629.00
PFC Application #6 - Increase by $3,000,000.00
PFC Application #7 - Decrease the Impose Only amount by $756,467.00.
The amendments when approved will allow PIE to administratively close out Application #3 and amend project budgets in Applications #6 and #7.
Revenue resulting from adoption of the Resolution will be appropriated in FY27-FY29 pending Board approval. The projected FY27-FY29 revenue increases approximately 1.7% annually compared to previous years.
Staff Member Responsible:
Thomas R. Jewsbury, Director, St. Pete-Clearwater International Airport
Partners:
FAA
Attachments:
Resolution
PFC Application Form For New Application #8 (Form #5500)
PFC Application Form For Amended Application #3 (Form #5500)
PFC Application Form for Amended Application #6 (Form #5500)
PFC Application Form for Amended Application #7 (Form #5500)
Proposed Project Descriptions