COUNCIL DISTRICT: City-Wide
SUBJECT: ADOPTION OF A RESOLUTION AUTHORIZING THE DIRECTOR OF AVIATION TO SUBMIT PASSENGER FACILITY CHARGES APPLICATION TO THE FEDERAL AVIATION ADMINISTRATION
Adoption of a resolution authorizing the Director of Aviation to submit Passenger Facility Charges application to the Federal Aviation Administration (FAA) to amend the Noise Attenuation Project to use PFCs at the $4.50 PFC level to treat the new areas included in the Calendar Year 2000 Measured 65 dB CNEL Noise Contour.
BACKGROUND
The Aviation
Safety and Capacity Expansion Act of 1990 authorizes the FAA to grant airport
operators the authority to fund through PFCs qualified airport capital
projects. This legislation was intended
to provide a local funding source to mitigate the shortfall of federal funds
available for airport projects. Airports
wishing to impose PFCs must apply to the FAA for authority and must meet all
requirements included in the PFC legislation and regulations. PFC revenues are collected by the airlines
and remitted to the airport imposing the charge.
On April 5, 2000, the Wendell H. Ford Aviation
Investment and Reform Act for the 21st Century (AIR 21) became law. AIR 21 enables public agencies to increase
the PFC level from $3.00 up to $4.50 per enplaned passenger to fund projects
that will make significant contribution to: (1) improving air safety and
security; (2) increasing competition among air carriers; (3) reducing current
or anticipated congestion; or (4) reducing the impact of aviation noise on
people living near the airport.
To-date, the FAA has approved ten PFC applications for the San Jose International Airport (SJIA) authorizing the collection of PFC’s, totaling $309,836,302 for collection through January 1, 2007. In addition, all outstanding PFC authorizations at San Jose International Airport have been approved at the $4.50 PFC level.
This amendment will provide funds for the Expanded Category I Acoustical Treatment Program for an additional total estimated cost of $142,846,000. This amount includes estimated financing and debt service cost of $89,603,000. The additional funds will be used to treat approximately 1,100 residential dwellings and other noise sensitive land uses identified on the Calendar Year 2000 Measured 65 dB CNEL Noise Contour Report in order to maintain interior noise level within the applicable standard (45 CNEL). These homes were located outside the projected year 2010 65 dB CNEL noise contour identified in the Airport Master Plan Environmental Impact Report (EIR), but are now included in the Calendar Year 2000 Measured 65dB CNEL Noise Contour. Section 25.04.770 of the Municipal Code requires the SJIA to implement the Acoustical Treatment Program for residences in the larger of the two contours.
This application was presented to the air carriers during the required consultation meeting on August 23, 2001. These applications would increase the total approved collection amount to $452,682,302 and would extend the City’s authority to collect PFCs to February 1, 2010.
The events of September 11, 2001 and the subsequent impacts
to flight activity at San Jose International have been considered in the
preparation of this memo and the project scope. Although some decrease in airport flight activity is anticipated
in the short-term, long-term activity projections continue to support the need
for an acoustical treatment program in these neighborhoods.
The Airport anticipates obtaining debt financing
secured in whole or in part by PFC revenues.
Accordingly, this application includes a request for PFC authority to
cover financing costs. The Record of
Decision approving the PFC authority may therefore include specific provisions
approving the City’s use of PFC revenues in connection with the financing.
As required by the PFC legislation and FAA
regulations, airlines operating out of San Jose International Airport were
provided a written project description of all projects in July 2001 and a
project consultation meeting with the airlines was held on August 23,
2001. The airlines were then given 30
days to provide written comment on the application. To date, no comments have been received. SJIA staff will inform Council in a
supplemental memorandum if comments are received from the airlines subsequent
to the distribution of this memorandum.
After the applications are filed, the FAA has 30 days to determine if
the applications are substantially complete. If the application is
substantially complete, the FAA will advise SJIA and publish a notice in the
Federal Register inviting public comment on the applications. The public agency
is required to make available for inspection and upon request a copy of the
applications, the notice and any other documents relating to the applications.
The Federal Register notice will disclose the name of the Airport, a brief
description of the project, an address and telephone number where the
application is available, and that comments are due within 30 days after
publication of the FAA Notice. The FAA is required to issue its decision no
later than 120 days after the application was filed.
AIRPORT MASTER
PLAN CONSISTENCY
The Airport's Acoustical
Treatment Program is an ongoing noise mitigation measure identified in the
Airport Master Plan EIR and is therefore consistent with the adopted Master
Plan pursuant to Municipal Code Section 25.04.210(B)(1).
This item has been coordinated with the City Attorney’s Office and the City Manager’s Budget Office.
Resolution Number 67380.
RALPH G. TONSETH
Director of Aviation
Airport Department