Since 2002, the Airport has participated in Reimbursement Agreements with the Transportation Security Administration (TSA) to partially reimburse the Aviation and Transit Department for the labor costs associated with providing law enforcement officer (LEO) coverage at the TSA's security passenger screening area.  The labor costs eligible for reimbursement include base salary, social security, 457 plans, health, life and disability insurance costs, as well as retirement costs.  The current Agreement expired on September 30, 2015 and was extended by the TSA for a 6-month period that ended March 31, 2016.  The extension allowed the TSA additional time to evaluate new applications from interested participants.   To participate in this next program, airports were once again required to apply via a federal grant process.  On August 27, 2015, Billings Logan International Airport submitted an application for participation in the next LEO reimbursement program and recently received notification of the Assistance Award.  The program period for the new Agreement consists of a 9-month base funding period, which begins on April 1, 2016 through December 31, 2016, along with two 12-month option periods to end on December 31, 2018. The option periods are to be exercised at the discretion of the TSA, with additional funding for the option periods to be provided on an annual basis, subject to the availability of federal funds.

City Council may:

• Approve this new LEO reimbursement agreement #HSTS02-16-H-SLR604 with the TSA known as an Other Transaction Agreement (OTA), including the accompanying Statement of Joint Objectives (SOJO), and receive partial reimbursement for the City's labor costs to provide law enforcement support of TSA's passenger screening area, or;
• Disapprove this new LEO reimbursement agreement #HSTS02-16-H-SLR604 with the TSA known as an Other Transaction Agreement (OTA), including the accompanying Statement of Joint Objectives (SOJO).  If this option is chosen, the City is still required to provide the law enforcement support and will incur the costs to provide law enforcement support to the security passenger screening area to prevent a disruption of commercial air service in Billings.  However, the City would not be reimbursed for any portion of these costs.

Under the terms of the OTA, the City will be authorized to receive partial reimbursement of the Airport's law enforcement officer's actual eligible wage and benefit costs for the time the officers spend at the passenger screening and checkpoint areas and on other TSA mandated activities.  Approximately 35% of the officers' time is spent on these functions. The Airport estimates the labor costs for the 9-month base period at $141,320.00.   The amount to be reimbursed for this 9-month period is $88,000.  With approval of the OTA and accompanying SOJO, the TSA has authorized the first obligation of funds for the Airport in the amount of $39,040.00 for the funding period April 1, 2016 to July 31, 2016, with the remaining funds for the base period to be unilaterally added by August 1, 2016.  Funding for subsequent years of the OTA period is at the option of the TSA and subject to the availability of federal funds.  Copies of the OTA and SOJO are on file in the City Clerk's office.

 
 

Staff recommends that City Council approve the OTA with the TSA, along with the accompanying SOJO and accept the associated reimbursement funds.