From time to time the Billings Logan International Airport must submit a Passenger Facility Charge (PFC) application to the Federal Aviation Administration (FAA) to continue its PFC collections that can be used for Airport related projects. The PFC program was established by Congress through 14 CFR Part 158. The application process provides the FAA and the air carriers that serve Billings an opportunity to review and comment on the proposed projects. Once the application has been reviewed and a public comment period has been allowed, the application can be submitted to the FAA for approval. This application is for approximately $1,050,755 and consists of project reimbursements for local share dollars already expended for projects that have been completed, many of which were mostly funded with Federal grants. The PFC rate for this application will continue at the $3.00 level and is anticipated to go into effect January 1, 2017, and provide funding until February 1, 2018.  These dates are dependent on the FAA approval date and the rate of collection that takes place. Table A from the airline notice letter is attached and provides a description of the projects for which the Airport is seeking funding.

To submit the application, City Council needs to authorize the Mayor to sign the application and agree that the City/Airport will comply with 14 CFR Part 158 and its related assurances.  The Director of Aviation and Transit will submit the application and work with the FAA on any follow up needed.

City Council may:

• Approve submitting the PFC application to the FAA and authorize the Mayor to sign the application; or
• Disapprove submitting the PFC application, temporarily terminating the PFC program at the Billings Logan International Airport.

The PFC collections at $3.00 produce between $1,000,000 and $1,200,000 of funding per year for Airport related capital projects.  Since this application is to basically recover local share funds previously expended, the revenue will be used to offset future local share needs for the Airport's Capital program.

Staff recommends that the City Council authorize the Mayor to sign the PFC application and allow the Billings Logan International Airport to submit the application for the $3.00 PFC for the Airport's projects.