Tulsa airport proposes 5 projects with PFC
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Sept. 20-- Five capital improvement projects at Tulsa International Airport are proposed for funding with the $4.50-per-ticket passenger facility charge in the latest PFC application to the Federal Aviation Administration, officials say.
Seven previous PFC applications to the FAA have been approved, authorizing the collection of $142.3 million in PFCs, said Carl Remus, deputy airports director of finance and administration.
PFC application #8 has been given preliminary approval by the airlines, which will collect $5.1 million in PFC revenue for application #8 projects.
The five projects are:
--$2.5 million for the design and engineering studies for the $31 million reconstruction of the east passenger concourse. PFCs will fund $2,125,000 of the cost, with $375,000 contributed from the TAIT general fund.
--$1.2 million for the purchase and installation of two passenger boarding bridges to replace boarding bridges at the end of their useful lives, airport executives said.
--$2.25 million for the purchase and installation of backup electrical generators and associated electrical system upgrades. PFCs will pay $1,687,500 of the cost, with TAIT's general fund contributing $562,500.
--$70,000 for the purchase and installation of replacement sensors and equipment at the exit lane, revolving doors for each concourse and main security checkpoint.
--$35,000 for consulting services related to the preparation, administration, management and tracking of the PFC program.
Remus said PFCs over the past 20 years have funded aircraft noise mitigation programs. They also have paid for a series of passenger terminal projects, including the renovation of the baggage claim rooms, construction of the pedestrian boulevard between the security checkpoints and the east and west concourses, and the ongoing $18 million reconstruction of the west passenger concourse.
"PFCs can be used as local matching funds or anything you can use a (FAA) grant for, or non-revenue projects," Remus said. "You can't use them to fix up a restaurant area."
With federal funding for airport capital projects becoming increasingly scarce, the PFC has filled the funding gap with locally generated user taxes that have been vital in airport projects over the past 20 years, airport executives said.
In recent years, major metropolitan airports, the American Association of Airport Executives and Airports Council International have lobbied Congress to increase the maximum PFC levy to $7.50 and index it to the inflationary cost of construction.
But TAIT board members, airline executives and some in Congress view a PFC increase or a rise in fees or taxes as unnecessary at best.
"$4.50 is working for us. We don't have a need for an increase at Tulsa International Airport," Remus said.
First levied in 1992, the PFC generates about $5 million at the $4.50 collection level that has been in effect since November 2010.
Previously, a $3-per-ticket PFC contributed between $4 million and $4.5 million to TAIT capital projects, officials said.
Passenger facility charge
What: $4.50 fee on each airline ticket generates about $5 million a year for capital projects at Tulsa International Airport.
Why: Since 1992, the Federal Aviation Administration has permitted airports to collect PFCs to generate local project funding to complement FAA grants.
PFC application #8: $5,117,500 of PFC revenue.
PFC application #8 projects:
--Design and engineering studies for the $31 million reconstruction of east passenger concourse.
--Purchase and installation of two passenger boarding bridges.
--Purchase and installation of backup electrical generators and associated electrical system upgrades.
--Purchase and installation of replacement sensors and equipment at the exit lane revolving doors.
--Consulting services related to preparation, administration, management and tracking of the PFC program.
Sources: Leigh Fisher Management Consultants, Tulsa Airport Improvement Trust.
D.R. Stewart 918-581-8451