LEGISLATIVE ACTION ITEM
SPONSOR: D.C. Reeves, Mayor
SUBJECT:
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SUPPLEMENTAL BUDGET RESOLUTION NO. 2023-033 - PENSACOLA INTERNATIONAL AIRPORT - DEPARTMENT OF TRANSPORTATION PUBLIC TRANSPORTATION AGREEMENT NO. 452606-1-A801 - PARTIAL FUNDING: DESIGN OF TERMINAL EXPANSION AND RENEWAL
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RECOMMENDATION:
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That City Council adopt Supplemental Budget Resolution No. 2023-033.
A RESOLUTION AUTHORIZING AND MAKING REVISIONS AND APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2023; PROVIDING FOR AN EFFECTIVE DATE.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
Pensacola International Airport has seen significant growth in aviation demand since the Airport Master Plan forecast was completed in 2016. While passenger demand dipped in 2020 due to the COVID-19 pandemic, the Airport experienced a strong recovery in 2021. Fiscal year 2022 passenger traffic exceeded pre-pandemic levels with Pensacola International Airport serving over 2.44 million passengers (inbound and outbound), marking it the highest year on record. The chart below shows enplaned and deplaned passenger numbers since 2018.
This growth has created overcrowding of passengers, delays at the Security Screening Checkpoint (SSCP), and a lower passenger level of service. The Airport is proposing a new five-gate passenger concourse that would alleviate existing congestion and shortfall of the existing facilities and enable the Airport to meet the needs of the traveling public more effectively. An expanded facility would provide the square footage necessary to remedy existing deficiencies and increase passenger level of service. A new concourse would also provide the square footage to allow for the required amount of space for hold rooms and concessions at the Airport.
The proposed project is not expected to change the Airport’s capability to accommodate larger aircraft as these larger aircraft are already operating at the Airport. The proposed project will provide additional internal space for passengers to be processed more efficiently at an optimum level of service. The proposed project will also increase the gate count to accommodate the aircraft fleet mix already operating at the Airport. In addition, the project will help maintain the competitiveness of facilities at the Airport in light of anticipated commercial service commencing at Brookley Field in Mobile, Alabama.
The grant would provide partial funding for a consultant to review project objectives, prepare design documents, submit applicable permit applications, and prepare cost estimates. The consultant will also prepare front-end documents for a public competitive bid process. The remaining funding will come from the Airport’s capital improvement account.
Approval of the supplemental budget resolution will appropriate the grant funds for this project.
PRIOR ACTION:
None
FUNDING:
Budget: $ 2,000,000 FDOT Grant 452606-1-A801
2,000,000 Airport Capital Funds
$ 4,000,000
Actual: $ 4,000,000 Terminal Expansion and Renewal Design
$ 4,000,000
FINANCIAL IMPACT:
Pensacola International Airport routinely request grant funding from the FDOT as part of a five-year work program. In anticipation of this grant, match funds were allocated in the fiscal year 2023 budget. In fiscal year 2023, funding in the amount of $2,000,000 has been appropriated in the Airport’s capital improvement account. Approval of the supplemental budget resolution will appropriate the grant funds for this project.
Funds will be provided from the FDOT on a reimbursable basis. While funds are eligible to be spent upon execution of the grant agreement, reimbursement will not be available until the State’s 2026 fiscal year. The Airport has sufficient cash reserves to fund the project until such time funds are reimbursed.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
5/16/2023
STAFF CONTACT:
Kerrith Fiddler, City Administrator
Amy Miller, Deputy City Administrator
Matthew F. Coughlin, Airport Director
ATTACHMENTS:
1) Supplemental Budget Resolution No. 2023-033
2) Supplemental Budget Explanation No. 2023-033
PRESENTATION: No end