LEGISLATIVE ACTION ITEM
SPONSOR: D.C. Reeves, Mayor
SUBJECT:
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PENSACOLA INTERNATIONAL AIRPORT - AGREEMENT FOR COLLECTION OF CUSTOMS AND BORDER PROTECTION CHARGES
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RECOMMENDATION:
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That City Council approve the agreement with Pensacola Aviation Center, LLC, setting forth the fees and charges assessed to incoming general aviation international flights. Further, that City Council authorize the Mayor to take the actions necessary to execute and administer this agreement, consistent with the terms of the agreement and the Mayor’s Executive Powers as granted in the City Charter.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
On March 25, 2021, City Council approved Lease No. HSBP-7120-L-IN0487 between the City of Pensacola and the U.S. Customs and Border Protection ("CBP"). The CBP processes incoming general aviation international flights at its U.S. Customs and Border Protection General Aviation Facility which is located on Airport property (the "CBP Facility"). Under the lease, the Airport is responsible to provide all standard services, utilities, and maintenance for the normal operation of the CBP Facility. To recoup some of the facility costs and in keeping with FAA grant assurances for the Airport to be as self-sustaining, the Airport has developed a fees and charges schedule ("CBP Charges") which will be assessed on all incoming general aviation international aircraft that are screened at the CBP Facility.
Pensacola Aviation Center, LLC (“PAC”) operates a fixed base operator ("FBO") facility at the Airport and provides FBO services for many of the incoming general aviation international flights under their December 1, 1997 lease agreement with the Airport. PAC has agreed to collect such CBP charges on behalf of the AIrport. Under the attached agreement, PAC shall remit to the City ninety percent (90%) of all CBP Charges collected and retain ten percent (10%) to compensate the company for the expenses of performing services under this agreement. Such fees shall be evaluated annually by the Airport and may be revised from time to time by the Airport Director. The initial fees shall be set at:
Approval of this item would allow the Airport a method to recoup cost associated with the CBP Facility, a mechanism to collect CBP Charges, and a way to provide International Aircraft with escorting services without the hiring of additional staff.
PRIOR ACTION:
March 25, 2021 - City Council approved Lease No. HSBP-7120-L-IN0487 between the City of Pensacola and the United States of America Customs and Border Protection.
FUNDING:
N/A
FINANCIAL IMPACT:
The CBP Charges is estimated to provide an additional $100,000 annually in non-airline revenue through fees and charges. This estimated increase could be impacted by general aviation international activity.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
6/2/2023
STAFF CONTACT:
Kerrith Fiddler, City Administrator
Amy Miller, Deputy City Administrator
Matthew F. Coughlin, Airport Director
ATTACHMENTS:
1) Agreement for Collection of CBP Fees
PRESENTATION: No end