During September 2002, the City entered into a Personnel Agreement with the Transportation Security Administration (TSA) to reimburse the Airport for the labor costs associated with providing Law Enforcement Officer (LEO) coverage at the TSA's security screening area. This Agreement expired on May 31, 2003. The TSA then requested that the City enter into a new agreement, which reimbursed the City for the security screening law enforcement costs incurred from June 1, 2003, to September 30, 2003, and permitted the City and the TSA to extend the Agreement each September for an additional year for a maximum of five years. That Agreement expired on September 30, 2007. The Department of Homeland Security (DHS) renewed the reimbursement opportunity for a new five-year program period that began October 1, 2007, and continues through September 30, 2012. To participate in this new program, airports were required to apply via a Federal grant process. Billings Logan International Airport submitted an application for participation in the LEO reimbursement program and was granted an Assistance Award. The City Council approved the LEO Agreement on September 10, 2007. The program has now completed its second year and Congress has approved funding for the third year of the program. The Airport was recently notified that it had been funded for the third year and that Modification #P00004, granting funding for the third year of the program and changing several financial reporting requirements, required approval and signature by the City.

The alternatives for Council to consider are as follows:

• Approve Modification #4 to the LEO Reimbursement Agreement with the TSA for reimbursement; or
• Not approve Modification #4 to the LEO Reimbursement Agreement with the TSA and terminate future reimbursement.

Under the terms of this Agreement, the City will be authorized to receive reimbursement of the Airport's LEOs' actual wage and benefit costs for the time the officers are available at screening and checkpoint areas, and other TSA mandated activities. Approximately 35% of the total Airport Police Officers' time is spent on these functions. The third year's fully-burdened costs have been estimated at $169,900. Under Modification #P00004, the Airport will be reimbursed up to $163,286.40 for the period October 1, 2009, through September 30, 2010.

Staff recommends that Council approve Modification #P00004 to the LEO Reimbursement Agreement with the TSA.