Title
Authorization to Apply for, Accept and Disburse Passenger Facility Charges for Aviation-Related Projects (Ordinance S-45201)
Description
Request to authorize the City Manager, or his designee, to submit applications for Passenger Facility Charges (PFCs) to the Federal Aviation Administration (FAA) for aviation-related projects. Further request authorization for the City Manager, or his designee, to sign all certifications required for the applications, to enter into agreements with the FAA for the continuing imposition and use of PFC funds, and to amend existing PFC agreements. The PFC agreements may contain other terms and conditions deemed necessary or appropriate by the City Manager, or his designee, provided they are consistent with FAA regulations and the current PFC rate cap. Further request authorization for the City Treasurer to accept any money related to the PFC authorizations and amendments. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The PFC program was initiated in 1990 by the FAA to provide funding for FAA-approved capital projects. The FAA established this program to address specific airport capital needs. In order to qualify for this funding, airports must demonstrate that the projects in a PFC application enhance safety, security, or capacity; reduce noise; or increase air carrier competition. When approved, a PFC is collected by the airlines at the current rate of $4.50 from each passenger who boards a flight at an approved airport. These funds are then remitted to the airport to pay eligible costs for approved capital projects. Today, these revenues are a critical funding source for every large hub airport in the United States.
The City Council originally authorized PFCs at Phoenix Sky Harbor International Airport in 1996, and has maintained the program with multiple applications and amendments that the FAA currently projects will expire in 2036. If approved, this authorization will allow the Aviation Department to respond promptly to the FAA as projects are developed and completed. Actions associated with this authorization will be for projects in the Aviation Department’s City Council approved Capital Improvement Plan.
Contract Term
This authorization would be effective until June 30, 2019.
Public Outreach
City staff held a FAA-required consultation meeting with the affected airlines on Nov. 8, 2018.
Location
Phoenix Sky Harbor International Airport, 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.