REPORT TO THE CITY COUNCIL
April 21, 2016
FROM: KEVIN R. MEIKLE, Director of Aviation
Airports Department
SUBJECT
Title
Approve a consulting agreement with Unison Consulting, Inc., for preparation of a Passenger Facility Charges Application at Fresno Yosemite International Airport, in an amount not to exceed $79,752. (Council District 4).
Body
RECOMMENDATIONS
Staff recommends the execution of a consulting services agreement with Unison Consulting, Inc., to provide services related to preparation of a Passenger Facility Charges Application for submission to the Federal Aviation Administration in the amount of $79,752.
EXECUTIVE SUMMARY
Passenger Facility Charges (PFCs) are federally authorized locally controlled user fees that airports use to fund Federal Aviation Administration (FAA) approved projects that enhance safety, security, or capacity; reduce noise; or increase airline competition. PFCs are collected by the airlines as part of the ticket purchase and are remitted directly to airports for deposit into PFC accounts. Almost all airports in the United States collect PFCs, which by nature of the program, help offset the airlines cost of doing business at an airport because PFC-funded capital improvements cannot be charged to the airline rate base like bond-funded improvements. PFC funds are strictly controlled by FAA through annual audits, and when a change to the program is necessary or desired an airport sponsor must submit a PFC application amendment to the FAA for approval.
PFCs are always paid - if not at FAT, then at the next airport. Fresno's PFC program ensures the dollars stay local to improve Fresno's Airport, not another airport. These improvements enhance Fresno's ability to provide Jobs, economic stimulation and the Airport's viability.
The proposed PFC application will not increase the current $4.50 per enplaned passenger fee currently charged under the existing program. Subject to FAA approval, the proposed PFC applicati...
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