HomeMy WebLinkAbout _ 4.2(a)--Budget Resolution Appropriating Funds for the Passenger Facility Charges Program
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Adopt Resolution adopting and approving the 79th Amendment to City Budget Resolution No.
2021-078 appropriating $28,910 for professional services and consulting related to
administration of the Passenger Facility Charges program at the Redding Regional Airport.
Fiscal Impact
This action would appropriate $28,908 of Redding Regional Airport (Airport) Passenger Facility
Charge (PFC) revenue for PFC program administration. Funding this action would not affect
other projects or planned activities.
Alternative Action
The City Council (Council) may choose not to adopt the budget resolution and provide staff with
an alternative direction. If staff does not complete PFC application 7 in a timely manner, federal
regulation requires that the Airport cease PFC collection once the existing collection authority is
exceeded.
If the Council chooses not to appropriate PFC revenue for PFC program administration, the
Airport will likely miss the opportunity to collect PFC revenue for the period of time until staff
can complete PFC application 7 under existing capacity or until additional funds are budgeted
which can be used to assist staff in completing PFC application 7. Lost revenue from stopping
PFC collection would be proportionate to $4.50 for each commercial air service passenger at the
Airport.
MEETING DATE: February 7, 2023
ITEM NO. 4.2(a)
FROM:
***APPROVED BY***
sbade@cityofredding.org
btippin@cityofredding.org
SUBJECT: 4.2(a)--Budget Resolution Appropriating Funds for the Passenger Facility
Charges Program
Steve Bade, Assistant City
Manager
Report to Redding City Council February 1, 2023
Re: 4.2(a)--Budget Resolution Appropriating Funds for the Passenger Facility Charges
Program Page 2
Background/Analysis
As a non-hub, primary service airport, the Airport is eligible for the PFC program. PFCs are
charges of up to $4.50 per passenger collected by air carriers and paid by the Federal Av iation
Administration (FAA) to eligible airports for certain projects that benefit commercial air service.
Airports are required to publish written notice to air carriers and the public of the intended
projects and intention to collect PFCs. Airports must carry out a consultation with air carriers
during which air carriers have an opportunity to raise objections to intended projects in the PFC
program. Thirty days following the consultation with air carriers, airports may apply to the FAA
to impose and use PFCs for the projects included in the notice.
The Airport has experienced unprecedented growth over the past five years , despite interruptions
due to the Covid-19 pandemic, and has even exceeded both the best pre-pandemic year numbers
and 100,000 passenger enplanements in calendar year 2022. As a result of increased
enplanement, the Airport has collected a higher average of PFC revenue than anticipated that is
above and beyond the collection authority of previous applications; this has necessitated two new
applications to the FAA program. PFC application 6 was submitted to the FAA on January 12,
2023, following an air carrier consultation which took place in August 2022.
The Airport is now in preparation to begin the process of PFC application 7 which will
definitively place the airport within its collection authority for both the short- and medium-term.
Due to staff capacity limitations, Airport staff intends to utilize the consulting services of Mead
& Hunt under AOS 23-01 of agreement C-8976 in order to complete PFC application 7 in a
timely manner. The FAA recently clarified to Airport staff that PFC Administration, inclusive of
the costs to complete PFC applications, are eligible projects in the PFC program. The Airport is
now seeking to appropriate funds from the PFC program to cover professional services and
consulting costs that make up the bulk of PFC administration for the Airport in order to minimize
the financial burden of administering the PFC program.
Staff recommends adopting the budget resolution so that the consultant can be engaged and work
can begin on PFC application 7. Completing this application in a timely matter is a critical
priority in order to maintain current revenue streams from the PFC program and to maintain
compliance with the FAA regarding PFC program regulations.
Environmental Review
Requests for determination of categorical exemptions to NEPA will be requested with PFC
application 7 for administrative projects such as PFC program administration.
Council Priority/City Manager Goals
• Budget and Financial Management – “Achieve balanced and stable 10-year Financial
Plans for all funds.”
Attachments
^Resolution
RESOLUTION NO. 2023-___
A RESOLUTION OF THE CITY OF REDDING APPROVING AND
ADOPTING THE 79th AMENDMENT TO CITY BUDGET RESOLUTION
NO. 2021-078 APPROPRIATING $28,910 IN PASSENGER FACILITY
CHARGE FUNDS FOR PROFESSIONAL SERVICES AND CONSULTING
RELATED TO THE ADMINISTRATION OF THE PASSENGER FACILITY
CHARGE PROGRAM AT REDDING REGIONAL AIRPORT IN FISCAL
YEAR 2022-23
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING
THAT Budget Resolution No. 2021-078 be and is hereby amended as follows:
FUND DIVISION DESCRIPTION INCREASE DECREASE
134
821
Redding Regional Airport
$28,910
THAT account titles and numbers requiring adjustments by this Resolution are as follows:
USE SOURCE
OF FUNDS OF FUNDS
Increase (Decrease) Revenue
134-821-6-1170-01 Passenger Facility Charge Revenue 28,910$
Increase Expenditures
134-821-4582-12 PFC App. #7 28,910$
Total 28,910$ 28,910$
THAT the purpose is to appropriate $28,910 in Passenger Facility Charge Funds for professional
services and consulting related to the administration of the Passenger Facility Charge Program as
Redding Regional Airport for fiscal year 2022-23.
I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of
the City Council of the City of Redding on the 7th day of February, 2023, and was duly
adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
MICHAEL DACQUISTO, Mayor
ATTEST: FORM APPROVAL:
PAMELA MIZE, City Clerk BARRY E. DeWALT, City Attorney