January 17 2020

Notice of Intent to Impose and Use Passenger Facility Charge for Bozeman Yellowstone International Airport (BZN) Belgrade, Montana

Bozeman, MT (January 17, 2020)  The Gallatin Airport Authority (Authority) intends to file an application with the Federal Aviation Administration (FAA), to impose and use a Passenger Facility Charges for improvement projects at Bozeman Yellowstone International Airport (BZN), Belgrade, Montana. As required under Section 158.23 of Part 158 – Passenger Facility Charges, the Authority is hereby providing written notices to all known air carriers having a significant business interest in Bozeman Yellowstone International Airport. The Authority intends to file for PFC funding for Airport Improvement Projects (AIP) described below.

The following paragraphs provide the information required under Section 158.23 of Part 158 for the notices to air carriers serving Bozeman Yellowstone International Airport of the Authorities intent to file the aforementioned application to Impose and Use PFC Revenues.

Section 158.23(a) (1). Description of Projects – Impose and Use
The Gallatin Airport Authority will file an application with the FAA to Impose and Use Passenger Facility Charges for the airline terminal expansion project including passenger boarding bridges and improvements to our integrated baggage system. The phased projects listed are necessary to maintain the airport in safe condition for the operation of aircraft and for the safety of the traveling public.

Phase I - Expand Terminal Building
The proposed project consists of the construction of approximately 82,000 square feet of Terminal Concourse expansion, reconstruction and modifications to baggage delivery systems, existing utility demolition and new utility additions, and commercial airline apron expansion. The project will also require rebuilding the access road where it ties into the new grade of the expanded commercial apron. Additionally, the proposed terminal and apron expansions are on top of the existing security fence/gate access in that area, so the fence will need to be removed and relocated to the south of the apron.  The terminal currently serves eight passenger boarding bridge gates, and the expansion will allow for up to four additional gates to be added.  The proposed terminal improvements are shown on the attached exhibits.
 
Phase II - Integrated Baggage System
The Integrated Baggage System will be constructed within the Terminal Expansion project discussed above.  The ground floor will provide space for baggage, storage, and circulation of employees. The proposed CBIS is anticipated to be a three EDS fully integrated in-line system, including associated Level 2 (OSR) and Level 3 (CBRA) spaces and search workstations.  Peak CBIS capacity is anticipated to be 950 BPH. The new baggage system will alleviate problems caused by the large amount of oversize ski bags.  The terminal building expansion is anticipated to be complete in the early summer of 2020 and baggage improvements will begin not long after construction is complete.  The proposed baggage system improvements are shown on the attached exhibits.

Phase III - Passenger Loading Bridges (5 each)
The Terminal Expansion project above includes the construction of four new gate positions for processing passengers.   This PFC application will also include the purchase and installation of new passenger loading bridges to serve the new gate positions and the replacement of an existing ramp drive loading bridge that has served its useful service life.  Therefore five new passenger loading bridges will be installed at the completion of the terminal project expansion discussed above.
 
Construction Cost Estimates
If applicable, cost estimates and sketches for the proposed projects are attached. Cost estimates were developed based on actual project costs completed for projects previously completed and for general planning purposes based on anticipated average unit costs ex­pressed in current dollars for future projects.   The total estimated project costs and PFC revenue are broken down as follows.

Impose and Use
Total Cost                AIP Share       TSA Share    Local Share            PFC Cost
 
Expand Terminal Building
$ 23,582,583           $7,016,652                                  $4,579,738         $11,986,193

Integrated Baggage System
$29,242,000                                      $10,820,000                                  $18,422,000

Passenger Loading Bridges 
$ 4,000,000                                                                                               $4,000,000
                               
$ 56,824,583          $7,016,652     $10,820,000      $4,579,738           $34,408,193

Section 158.23(a)(2).  PFC Level, Charge Effective Date, Charge Expiration Date, and Total Revenue

PFC Level:   
$4.50 per enplaned passenger at BZN. 

Proposed Charge Effective Date:  
April 1, 2023

Estimated Charge Expiration Date:  
January 1, 2033 

Estimated Total PFC Revenue:  
$34,408,193.00   

Section 158.23(a)(3).  Request that a Class of Carrier not be required to Collect PFCs
(i) Class Designation:  The class of carrier that would not be required to collect a PFC, if approved by the FAA, is the on demand, non-scheduled Air Taxi/Commercial Operators (ATCO).  The following is the list of those operators known to the Authority filing FAA Form 1800-31.

(ii) and (iii) Names of Known Carriers Belonging to Class Identified in this Section and Esti­mated Number of Annual Enplaned Passengers:

Schedule Type       Carrier                                               Calendar Year                                                                                                                    2018 Enplanements
ATCO                         Aero Jet Services LLC                                   19
ATCO                         Crow Executive Air, Inc.                                2
ATCO                         Kaiser Air, Inc.                                              14
ATCO                         Netjets Aviation, Inc.                                 591
ATCO                         Priester Aviation LLC                                    3
ATCO                         Reliant Air Charter, Inc.                                2
ATCO                         Sunset Aviation LLC                                    63
Total ATCO                                                                                    694      
           
Source:  Federal Aviation Administration.

(iv) Reasons for Requesting that Carriers Identified in this Section Not be Required to Collect the PFC:  The number of passengers enplaned annually by this type of carrier represents about 0.1% of the commercial operations operating on the BZN Airport.  The estimated revenue from these carriers over the next ten years would be about $28,000.00 as compared to the estimated revenue of $35,000,000.00 from all the other carriers.  In accordance with Section 158.11 of CFR Title14 Part 158, the Authority may request of the FAA in its Application to Impose and Use PFCs that collection of PFCs by any class of air carriers or foreign air carriers not be required to collect a PFC if the number of enplaned passengers by the carrier in the class constitutes no more than 1% of the total number of passengers enplaned annually at BZN Airport.  This would be the case with the on demand, non-scheduled Air Taxi/Commercial Operators.

Public Comment: The Gallatin Airport Authority welcomes the public's comments and support for these projects.  Members of the public wishing to comment on the proposed projects should mail those comments with a postal date no later than February 10, 2020 to Brian Sprenger, Airport Director at the following address:  Bozeman Yellowstone Int'l AIrport, 850 Gallatin Field Rd., Ste 6, Belgrade, MT 59714.

Brian Sprenger, Airport Director
Bozeman Yellowstone Int'l Airport (BZN)
Gallatin Airport Authority

9:33AM
February 17, 2020
2/17/2020
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