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Public Notice for PFC Application

Public Notice of PFC Application

 Notice Date: August 20, 2010
 
 
 Existing PFC Program:
 
Since 1993, and with the approval of the Federal Administration (FAA), The Greater Binghamton Airport (BGM) has been authorized to collect and use a total of $7,936,217 in Passenger Facility Charge (PFC) revenues. These funds are regulated by United States of America Federal Regulation (FAR Part 158) to be used toward previously approved projects that address aviation safety, security, and preservation and capacity enhancements improvements.
 
In accordance with federal law, PFC revenues can be used to offset the local share of federally funded projects or can be used to pay up to 100% of the project costs. As a result, the use of PFC revenues enables safety, security and capacity enhancing capital projects to be completed at BGM without the requirement of Airport Operating or General Broome County Tax funding. In other words this type of funding program enables the operation of the airport to remain self-supporting without the requirement of General Broome County Tax Funding.
 
Proposed PFC Plan/Budget:  
 
The Broome County Department of Aviation proposes imposing and using PFC revenues to accomplish the following projects:
 
New Projects                                                                                                        PFC Requirement
 
Q      Runway 16-34 Safety Area Improvements
Design (Impose and Use)                                          $22,500
Q      Runway 16-34 Safety Area Improvements
Construct (Impose and Use)                                     $275,000
Q      SRE Improvements (Impose and Use)                          $150,000
Q      PFC Administration Cost (Impose and Use)                   $15,500
 
 
 
 
Project Descriptions and Justification
 
1.             Runway 16-34 Safety Area Improvements Design (Impose and use)
 
PROJECT DESCRIPTION:
 
This project will involve the design phase for the Runway Safety Area Improvements as planned for on the South end of BGM runway 16/34. All federal, state and local regulations would be considered and an intended course of action would be developed.
 
PROJECT JUSIFICATION:
 
Runway Safety Areas Improvements continue to be a focus point for the FAA, as well as the Department of Aviation. The design phase is the second step in addressing targeted improvements for runway 16/34 safety areas.
 
This project’s costs are scheduled to be paid as follows:
                95% -Federal Grant/ 2.5% State Share/ 2.5% PFC Funding
 
Project Start          1/1/10                                     Project End            12/31/10
 
 
2.             Runway 16-34 Safety Area Improvements Construct (Impose and use)
 
PROJECT DESCRIPTION:
 
This project will involve the construction phase for the Runway Safety Area Improvements as planned for on the South end of BGM runway 16/34. All federal, state and local regulations would be considered and an intended course of action would be developed.
 
PROJECT JUSIFICATION:
 
Runway Safety Areas Improvements continue to be a focus point for the FAA, as well as the Department of Aviation. The construction phase is the final step in addressing targeted improvements for runway 16/34 safety areas.
 
This project’s costs are scheduled to be paid as follows:
                95% -Federal Grant/ 2.5% State Share/ 2.5% PFC Funding
 
Project Start          3/1/11                                     Project End            11/30/11
 
 
3.             SRE Improvements (Impose and Use)
 
 
PROJECT DESCRIPTION:
 
This project will consist of three parts, installing a new fire pump in the Snow Removal Equipment Building, replacing a mass emergency notification device, and improving a more economical heating system for the airport’s sand dome.
 
 
PROJECT JUSIFICATION:
 
This project will consist of three parts, installing a new fire pump in the Snow Removal Equipment Building, replacing a mass emergency notification device, and improving a more economical heating system for the airport’s sand dome. A new fire pump will enhance the fire suppression system in the Snow Removal Equipment Building, thus protecting the equipment that provides a safe runway environment. A new mass emergency notification device will replace an older devise that has out lived it usefulness. This will maintain the airport’s ability to respond to all emergencies. Upgrading the heating system for the airport sand dome will contribute to a safe runway environment during winter operations. By maintaining sand at a warmer temperature, this will prevent the sand from freezing and creating FOD (Foreign Object Damage).
 
This project’s costs are scheduled to be paid as follows:
                95% -Federal Grant/ 2.5% State Share/ 2.5% PFC Funding
 
Project Start          6/1/10                                     Project End            10/31/10
 
 
4.             PFC Administrative Cost (Impose and Use)
 
PROJECT DESCRIPTION:
 
In accordance with FAR 158, this project consists of reimbursement to the Broome County Department of Aviation for administrative costs associated with the PFC Program. Using technique for calculating this average reimbursement value approved by the Eastern Region Airports Division, the Broome County Department of Aviation has determined an annual rate of $15, 500. Calculation of this figure consist of using employee hours spent on deposits, quarterly reports, and audits, along with application project development.
 
PROJECT JUSIFICATION:
 
Public agencies may use PFC revenue to pay for allowable administrative support costs. Public agencies must submit these costs as a separate project in each PFC application.
 
 
This project’s costs are scheduled to be paid as follows:
                100% PFC Funding
 
Project Start          1/1/10                                                     Project End            12/31/10
 
 
PFC Charge Level and Time Period
 
In order to provide funding to the projects designated Impose and Use or Impose only in the list above, the PFC collection rate will continue to be at a $4.50 level with an anticipated charge effective date of July1, 2012. The estimated total of new PFC revenue collection requirement for our new submittal is $ 463,000. Based on this information, the charge expiration date of this notice of intent is estimated to be September 1, 2013.
 
Exemption from the collection of PFC
 
The Broome County Department of Aviation maintains that Nonscheduled/ On-Demand Air Carries filing form 1800-31 should be exempt from collection of a PFC since the cost of collection outweighs the revenue derived from the carries who collectively enplane less than 1.0% of the total passengers flying from BGM each year.
 
Comments or Questions
 
Please direct all comments and questions regarding this  to the following:
 
Carl R. Beardsley, Jr.
Commissioner of Aviation
Broome County Department of Aviation
Greater Binghamton Airport
2534 Airport Road, Box 16
Johnson City, NY 13790

Posted: 8/20/2010 12:14 pm