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HomeMy WebLinkAbout08787ORDINANCE NO. 8787 AN ORDINANCE ESTABLISHING PROJECT NO. AP1403- PFC APPLICATION, BUDGETING AND APPROPRIATING $36,102 FROM THE 542-PFC FUND TO THE PROJECT, APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO AND SHORT ELLIOTT HENDRICKSON (SEH) FOR ASSISTANCE WITH THE FILING OF AN APPLICATION TO IMPOSE A PASSENGER FACILITY CHARGE (PFC) AT THE PUEBLO MEMORIAL AIRPORT, AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME WHEREAS, the Pueblo Memorial Airport currently charges a Passenger Facility Charge that will be expiring December 1, 2014; and WHEREAS, a capital project needs to be established and funds budgeted and appropriated into the project; and WHEREAS, an agreement with Short, Elliott, Hendrickson is needed to compile information for the submittal of a new application that would allow the Airport to continue charging these fees; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Capital Project AP1403-PFC Application is hereby established. SECTION 2. Funds in the amount of $36,102 are hereby budgeted and appropriated from the 542-PFC Fund into Capital Project AP1403-PFC Application. SECTION 3. A certain Agreement for professional services, a copy of which is attached hereto and made part thereof by reference, by and between the City of Pueblo, a Municipal Corporation, and Short, Elliott, Hendrickson for the compilation and submittal of a PFC Application to the Federal Aviation Administration, after having been approved as to form by the City Attorney, is hereby approved. SECTION 4. The President of the City Council is hereby authorized to execute said Agreement on behalf of Pueblo, a Municipal Corporation, and the City Clerk shall affix the Seal of the City thereto and attest the same. SECTION 5. Funds for work performed under the Agreement shall be expended from Capital Project AP1403-PFC Application. SECTION 6. The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Ordinance and the Agreement to effectuate the transactions described therein. SECTION 7. This Ordinance shall become effective immediately upon final passage and approval. INTRODUCED: October 14, 2014 BY: Ed Brown COUNCILPERSON PASSED AND APPROVED: October 27, 2014 City Clerk’s Office Item # R-5 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: October 14, 2014 TO: President Sandra K. Daff and Members of City Council CC: Sam Azad, City Manager VIA: Gina Dutcher, City Clerk FROM: Mark Lovin – Aviation Department SUBJECT: AN ORDINANCE ESTABLISHING PROJECT NO. AP1403-PFC APPLICATION, BUDGETING AND APPROPRIATING $36,102 FROM THE 542-PFC FUND TO THE PROJECT, APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO AND SHORT ELLIOTT HENDRICKSON (SEH) FOR ASSISTANCE WITH THE FILING OF AN APPLICATION TO IMPOSE A PASSENGER FACILITY CHARGE (PFC) AT THE PUEBLO MEMORIAL AIRPORT, AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME SUMMARY: This Ordinance approves an agreement with SEH to assist with the filing of an application to impose Passenger Facility Charges (PFC) at the Airport. The PFC is a fee levied by airports in order to fund approved capital projects and equipment. The fee is added to passenger tickets and is collected by the airlines who distribute it to the airports that the flights originate from. Once the Application is completed, it will be submitted to the Federal Aviation Administration (FAA) for approval. The Ordinance also establishes and allocates funding to a project for the PFC Application. PREVIOUS COUNCIL ACTION: On February 22, 1993, City Council approved Ordinance No. 5789 adopting a Passenger Facility Charge to impose a fee on eligible enplaned passengers at the Airport. On March 22, 1993, Resolution No. 7100 was approved authorizing the projects that the PFC’s would be expended on. On November 13, 1995, City Council approved Ordinance No. 6038 allowing the continued collection of PFC fees. On December 11, 1995, Resolution No. 7774 was approved authorizing additional projects the fee would be expended on. BACKGROUND In 1993, the FAA and City Council approved a $3.00 passenger facility charge that would be added to all passenger tickets originating out of the Airport. The 1993 application expired in 1999 and the 1995 application then began and expires December 1, 2014. The fees have paid for the Airport’s matching funds on approved projects. Due to the slow rate of collections, the fee has been used to reimburse the City for the matching funds on projects that were completed in the 1990’s. These projects have all been reimbursed at this time. In order to continue to charge this fee and reimburse the City for grant matches, a new application is necessary and SEH will assist with the compilation and filing of this application. FINANCIAL IMPLICATIONS: The agreement with SEH is for $36,102. The funds will be transferred from the 542- PFC Fund to Capital Project AP1403-PFC Application. BOARD/COMMISSION RECOMMENDATION: None. STAKEHOLDER PROCESS: All air carriers serving the Airport will be notified that the Airport is planning to file a PFC application and a public meeting will be held. ALTERNATIVES: If Council does not approve this Ordinance, the application will not be submitted and the Airport will no longer be eligible to collect these fees. RECOMMENDATION The Aviation Department recommends approval of this Ordinance. Attachments: Standard Form of Agreement for Professional Engineering Services