Since September 2002, the City has 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. The Department of Homeland Security (DHS) renewed the reimbursement opportunity for a new five-year program period that began October 1, 2007, 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 completed its third year on September 30, 2010, and Congress has approved partial funding for the fourth year of the program. The Airport recently received Modification #P00005 granting partial funding for the fourth year of the program.  Modification #P00005 also revises the Statement of Joint Objectives (SOJO), changes several financial reporting requirements, and requires approval and signature by the City.  In the past, the annual modifications provided funding for a full year's worth of reimbursement activities. This time, however, due to the short term funding of Federal government activities through Congressional Continuing Resolutions, full funding is not available and funds are dispersed, if and when they become available. Staff anticipates that numerous modifications granting additional partial funding for this Agreement will follow, and therefore recommends that the Mayor be authorized to sign Modification #P00005 and any future modifications as they are granted by the DHS for the balance of the 2007 Agreement, which expires September 30, 2012.

The City Council may:

• Approve Modification #P00005 to the LEO Agreement  approved on September 10, 2007, allowing the Airport to be partially reimbursed for allowable LEO costs incurred from October 1, 2010 through February 28, 2011, and authorizing the Mayor to sign Modification #P00005 and subsequent modifications for reimbursement as Congressional funding is allocated for the balance of the main Agreement, which expires September 30, 2012; or
• Not approve Modification #P00005 to the LEO Agreement approved on September 10, 2007, allowing the Airport to be partially reimbursed for allowable LEO costs incurred from October 1, 2010 through February 28, 2011, and not authorize the Mayor to sign Modification #P00005 and subsequent modifications for reimbursement.  Failure to approve this Modification or any subsequent modifications would forfeit any remaining reimbursement funds from the DHS granted through the 2007 Agreement.

Under the terms of this Agreement, the City is authorized to receive reimbursement of the Airport law enforcement officers' actual wage and benefit costs (at a not to exceed amount) for the time the officers are available at screening and checkpoint areas. The fourth year's fully burdened costs have been estimated at $169,900. Under Modification #P00005, the Airport will be reimbursed up to $68,036.00 for the period October 1, 2010 through February 28, 2011.

Staff recommends that Council approve and authorize the Mayor to sign Modification #P00005 to the Law Enforcement Officer Reimbursement Agreement with the TSA, and any subsequent modifications that offer reimbursement for LEO services provided for the TSA.