Okaloosa County BOCC — August 18, 2015 — Authorization of Appeal of FAA Determination — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: August 18, 2015 TO: Honorable Chairman and Members of the Board FROM: Rick Owen SUBJECT: Authorization of Appeal of FAA Determination DEPARTMENT: County Administrator BCC DISTRICT: All STATEMENT OF ISSUE: The Airport Department previously submitted Application number 15-06-C-00-VPS to impose a passenger facility charge (PFC) at the Northwest Florida Regional Airport (VPS) for use a VPS, at Bob Sikes Airport (CEW), and at Destin-Fort Walton Beach Airport (DTS). On July 7, 2015, a Final Agency Decision of the Federal Aviation Administration (FAA) was received approving, or partially approving, many of the request. However, it denied several requests including the authorization to use accumulated PFCs for the payment of long term lease payments. The Airport Department requests authorization to appeal this determination. The deadline for filing the appeal is September 4, 2015. BACKGROUND AND ANALYSIS: The Airport Department previously submitted Application number 15-06-C-00-VPS to impose a passenger facility charge (PFC) at the Northwest Florida Regional Airport (VPS) for use a VPS, at Bob Sikes Airport (CEW), and at Destin-Fort Walton Beach Airport (DTS). On July 7, 2015, a Final Agency Decision of the Federal Aviation Administration (FAA) was received approving, or partially approving, many of the request. However, it denied several requests including the authorization to use accumulated PFCs for the payment of long term lease payments. The particular request as to the use of accumulated PFCs for long term lease payments was denied by the FAA was that it was their interpretation that for the use of PFCs to be authorized, the lease of publically owned land must be between the sponsor and a public agency. (See Item 15 on page 19 of the determination). However, the FAA did not consider the federal government to be a “public agency” for the purpose of using PFCs for lease payments. In the event that no appeal is filed, it will be determined to be a final order and will likely be deemed binding precedent going forward. In discussing this matter with the Airport Director and outside counsel who has been handling this matter, the appeal of the determination of the FAA as to the ability of the County to use PFC’s for lease payments will provide additional flexibility to the Board in funding these obligations. Further, the appeal will not impact the amount of the PFCs that are charged by the County. The PFC charged by the County is $4.50 for each enplaned passenger at the airport, which is the maximum currently allowed by Federal law. The deadline for filing the appeal is September 4, 2015. OPTIONS: Authorize the filing of an appeal or accept the determination. RECOMMENDATION: Staff recommends the filing of an appeal. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator