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HomeMy WebLinkAbout08796ORDINANCE NO. 8796 AN ORDINANCE ADOPTING A PASSENGER FACILITY CHARGE PROGRAM, AUTHORIZING AND IMPOSING A $4.50 PASSENGER FACILITY CHARGE ON ELIGIBLE ENPLANED PASSENGERS AT PUEBLO MEMORIAL AIRPORT IN ACCORDANCE WITH 49 U.S.C. 40117, PROVIDING FOR SANCTIONS FOR VIOLATION THEREOF, AND AUTHORIZING THE CITY MANAGER TO FILE AN APPLICATION FOR AND ASSURANCES WITH RESPECT TO THE PASSENGER FACILITY CHARGE PROGRAM WHEREAS, the City has investigated the feasibility of implementing and collecting a Passenger Facility Charge (“PFC”) on eligible enplaned passengers at Pueblo Memorial Airport (“Airport”) in accordance with 49 U.S.C. 40117 (“Statute”) as approved by the Federal Aviation Administration (“FAA”) and imposing and collecting a PFC from eligible enplaned passengers at Pueblo Memorial Airport, under terms and conditions that are consistent with said Statute as approved by the FAA and to expend such funds on FAA approved eligible projects; and WHEREAS, the City operates, maintains, and develops the Airport with Federal grants and user fees; and WHEREAS, a PFC is not to be considered a tax, but is a user fee authorized by the Federal law and imposed only on eligible enplaned passengers utilizing the Airport; and WHEREAS, the City has determined that the funds generated by the adoption and collection of a PFC are needed to accomplish projects designed to preserve or enhance capacity, safety or security, reduce noise, or furnish opportunities for enhanced competition at the Airport; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. DEFINITIONS As used in this Ordinance, the following definitions apply: 1.1 “Airport” shall mean the area of Pueblo Memorial Airport. 1.2 “Charge Effective Date” shall mean the date on which the Passenger Facility Charge is effective as provided in Section 3.1 of this Ordinance. 1.3 “Enplaned Passenger” means a domestic, territorial, or international revenue passenger enplaned at the Airport in a scheduled or nonscheduled aircraft in interstate, intrastate, or foreign commerce, with limitations as provided for in 14 C.F.R. 158.9. 1.4 “Manager” shall mean the City Manager for the City of Pueblo. 1.5 “FAA” shall mean the Federal Aviation Administration, Department of Transportation, United States of America. 1.6 “Passenger Facility Charge” shall mean the charge imposed on Enplaned Passengers pursuant to Section 3.1 of this Ordinance. 1.7 “City of Pueblo” or “City” shall mean Pueblo, a Municipal Corporation, created pursuant to Colorado State law. SECTION 2. FINDINGS AND PURPOSE 2.1 The City Council does hereby find and determine that: 2.1.1 The City owns and controls a certain Airport and air navigation facility located in Pueblo County, State of Colorado, and known as Pueblo Memorial Airport (“Airport”); and 2.1.2 The Airport promotes a strong economic base for the community, assists and encourages interstate trade opportunities, and is of vital importance to the health, safety, and welfare of the City and State of Colorado; and 2.1.3 The Airport is a commercial service airport as defined in 14 Code of Federal Regulations Part 158 as adopted by the FAA, being a public airport that annually enplanes 2,500 or more passengers and receives scheduled passenger service aircraft; and 2.1.4 The deregulation of the airline industry, the restructuring of airline ownerships, and fluctuating market changes in the field of commercial aviation have placed new financial challenges and burdens on the City; and 2.1.5 The operation of the Airport as a public facility attracting scheduled airline passenger service by airline carriers at the Airport imposes financial responsibility on the City for airport facilities and operations; and 2.1.6 The City will require substantial expenditure for capital investment, operation, maintenance, and development of the Airport facilities to meet the future demand for passenger air travel; and 2.1.7 The Congress of the United States has authorized the adoption of a Passenger Facility Charge and program by local airports pursuant to the Aviation Safety and Capacity Expansion Act of 1990, (pub. L. 101-508, Title IX, Subtitle B, November 5, 1990), the Federal Aviation Act of 1994, the Federal Aviation Reauthorization Act of 1996, and the Wendell H. Ford Aviation Investment and Reform Act st for the 21 Century (AIR 21); and 2.1.8 It is in the City’s best economic interest to adopt and in the interest of airline passengers that the City adopt a Passenger Facility Charge and program as identified in this Ordinance to maintain and further expand the transportation facilities of the City; and 2.1.9 In establishing and implementing the Passenger Facility Charge and program, the passengers using the Airport should contribute to a greater degree toward the development of Airport Facilities used by passengers and continued development thereof; and 2.1.10 The charges authorized and imposed by this Ordinance are reasonable for the use of the Airport and aviation facilities by the general public. 2.2 The purpose of this Ordinance is to enact a Passenger Facility Charge and program consistent with the above findings and this Ordinance and regulations published pursuant thereto and shall be liberally construed to effectuate the purposes expressed. SECTION 3. Passenger Facility Charge 3.1 Commencing not later than the first day of the second month thirty days after the approval by the FAA of the City’s Passenger Facility Charge and program authorized by this Ordinance, or on such date thereafter as the Passenger Facility Charge can be collected as determined by the Director (“Charge Effective Date”), there shall be imposed at the Pueblo Memorial Airport a Passenger Facility Charge of $4.50 (“Passenger Facility Charge”). 3.2 The Passenger Facility Charge and program authorized by this Ordinance shall commence on the Charge Effective Date and shall expire on the date determined pursuant to regulations adopted by FAA. 3.3 The City Manager is authorized to execute the FAA application for authorization of the City’s PFC and program including the assurances contained therein and other documents necessary for implementation of the PFC program on behalf of the City. SECTION 4. ELIGIBLE PROJECTS 4.1 The Passenger Facility Charge collected pursuant to this Ordinance shall be expended for projects approved by Resolution of the City Council and determined by the FAA to be eligible under the Statute and rules and regulations adopted by FAA pursuant to the Statute. SECTION 5. COMPLIANCE WITH FAA REQUIREMENTS 5.1 The Passenger Facility Charge authorized by this Ordinance shall be collected and distributed pursuant to the rules and regulations adopted by the FAA pursuant to the Statute. SECTION 6. VIOLATIONS AND SANCTIONS 6.1 In the event any airline violates any term or condition of this Ordinance, the City may exercise any rights or remedies allowed by law and equity. SECTION 7. PRIOR PASSENGER FACILITY CHARGE 7.1 The Passenger Facility Charge authorized by Ordinance No. 6038 shall not be made or imposed after the Charge Effective Date described in Section 3.1 of this Ordinance. SECTION 8. SAVINGS CLAUSE 8.1 In the event any phrase, clause, sentence, paragraph, or paragraphs of this Ordinance is declared invalid for any reason, the remainder of this Ordinance shall not be invalidated, but shall remain in full force and effect, all parts of this Ordinance being declared separable and independent of all others. In the event that a judgment is entered, and all appeals exhausted, which judgment finds, concludes or declares this Ordinance is unconstitutional or is otherwise invalid, the Passenger Facility Charge and program authorized by this Ordinance shall be suspended and terminated as of the date of declaration of unconstitutionality. SECTION 9. OFFICERS AND STAFF DIRECTION 9.1 The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Ordinance to effectuate the policies and procedures described herein. SECTION 10. EFFECTIVE DATE 10.1 This Ordinance shall become effective immediately upon final passage and approval. INTRODUCED: November 10, 2014 BY: Chris Nicoll PASSED AND APPROVED: November 24, 2014 City Clerk’s Office Item # R-6 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: November 10, 2014 TO: Vice President Ami Nawrocki and Members of City Council CC: Sam Azad, City Manager VIA: Gina Dutcher, City Clerk FROM: Mark Lovin – Aviation Department SUBJECT: AN ORDINANCE ADOPTING A PASSENGER FACILITY CHARGE PROGRAM, AUTHORIZING AND IMPOSING A $4.50 PASSENGER FACILITY CHARGE ON ELIGIBLE ENPLANED PASSENGERS AT PUEBLO MEMORIAL AIRPORT IN ACCORDANCE WITH 49 U.S.C. 40117, PROVIDING FOR SANCTIONS FOR VIOLATION THEREOF, AND AUTHORIZING THE CITY MANAGER TO FILE AN APPLICATION FOR AND ASSURANCES WITH RESPECT TO THE PASSENGER FACILITY CHARGE PROGRAM SUMMARY: This Ordinance adopts a Passenger Facility Charge (PFC) program at the Pueblo Memorial Airport and authorizes the City Manager to file an application with the Federal Aviation Administration (FAA) for the approval of the fee. PREVIOUS COUNCIL ACTION: On February 22, 1993, City Council approved Ordinance No. 5789 adopting a Passenger Facility Charge (PFC) which imposed a fee on eligible enplaned passengers at the Airport. On March 22, 1993, Resolution No. 7100 was approved authorizing the projects for the expenditure of PFC funds. 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 for the expenditure of PFC funds. BACKGROUND PFC’s were first authorized by Congress in 1990 and are tied directly to local airport- related projects. Original legislation permitted airports to charge up to $3.00 per enplaned passenger. In 2000, Congress approved the Wendell H. Ford Aviation st Investment and Reform Act for the 21Century (AIR-21) that allows airports to charge up to $4.50 per enplaned passenger. Most commercial airports, both large and small, have adopted and implemented a PFC program and have increased their PFC’s to $4.50. The fee is added to passenger tickets and is collected by the airlines who distribute it to the airports from which the flights originate. The airlines are allowed to keep $.11 of each fee collected for administrative purposes. In 1993 and 1995, the FAA and City Council approved a $3.00 passenger facility charge which was added to all passenger tickets originating out of the Pueblo Airport. This charge will expire December 1, 2014. The fees provide for the Airport’s matching funds on FAA approved eligible projects. FINANCIAL IMPLICATIONS: The maximum PFC’s to be collected under this application are $833,789. The expiration date of the new PFC collection will be April 1, 2036. BOARD/COMMISSION RECOMMENDATION: None. STAKEHOLDER PROCESS: All air carriers serving the Airport have been notified via certified mail that the Airport is planning to file a PFC application and that a public meeting is scheduled for November 19, 2014 at 11:00 a.m. in the Pueblo Memorial Airport Administration Conference Room. 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: None