TITLE
Consider a memorandum/resolution to approve a customer facility charge at Killeen Fort Hood Regional Airport.
SUMMARY
DATE: October 23, 2018
TO: Ronald L. Olson, City Manager
FROM: Matthew Van Valkenburgh A.A.E., Executive Director of Aviation
SUBJECT: APPROVAL OF A RESOLUTION FOR THE CUSTOMER FACILITY CHARGE AT KILLEEN FORT HOOD REGIONAL AIRPORT
BACKGROUND AND FINDINGS:
The customer facility charge (CFC) is a user fee imposed by an airport operator on each rental car user, collected by rental car companies. In general, a CFC is collected for each rental car transaction or each rental car transaction day. These revenues are generally used for capital, operating and maintenance, and financing costs of rental-car-related projects, such as rental car quick-turn facilities (QTF), terminal roadway and curbside improvement, and utility infrastructure systems. Also, if the Airport needs to use part of an existing parking facility for rental car operations, CFC may be used to build replacement parking space elsewhere. The CFC rate is typically adjusted from time to time to provide adequate revenues for all obligations; therefore, the CFC rate is determined locally.
When the commercial aviation service moved from the former Killeen Municipal Airport to the Killeen Fort Hood Regional Airport in 2004, a Capital Improvement Recovery Fee was established to assist the new Airport in funding its operations and development. This rate was established at $2.00 per transaction day. In 2011, a new agreement was negotiated with the rental cars which continued the collection of this fee, now renamed as a CFC, with the purpose to further develop rental car facilities and operations; the rate continued at the $2.00 level. These funds are being used to upgrade the rental car quick-turn facility car wash and cleaning equipment with the addition of a new automated bay and new equipment for the remaining bays. Additionally, these funds will be used to provi...
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