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Council confirms Lydia Kennard as executive director of Los Angeles World Airports; AIP/PFC funding question raised
Summary
The Los Angeles City Council confirmed Lydia Kennard as executive director of Los Angeles World Airports and members pressed for clarity on the agency—s longstanding choice not to accept federal AIP grants and the linked passenger facility charge rules that could increase financial impacts.
Lydia Kennard was confirmed by the Los Angeles City Council on March 28 as the permanent executive director of Los Angeles World Airports following a committee recommendation and an affirmative council vote.
Council members described the appointment as a milestone and congratulated Kennard on her prior interim service; Councilmember Sovanich moved approval in committee and the council recorded a roll call of "12 ayes" when the motion was taken on the floor.
Councillors also used the moment to seek public clarification about LAWA—s decision not to accept certain Federal Aviation Administration AIP (Airport Improvement Program) grants. Kennard told the council that "attached to our acceptance of that money is a grant assurance" that, in her words, "would require us not to be able to take money or non-aviation revenue for purposes off airport." She said the city—s prior policy had been to refuse AIP funds in order to preserve flexibility for non-aviation revenues, but that the department was now precluded from both taking AIP grants and using non-aviation revenues off-airport.
Kennard warned council members that a recently passed congressional change tying passenger facility charges (PFCs) to AIP funding could increase the airport—s net losses going forward and said the airport commission, not the council or committee, makes the policy decision on whether to accept AIP funds. Council members asked for further briefings on whether the city should revisit that policy and what the fiscal impact to the general fund and airport operations could be.
The council presented Kennard with formal congratulations and several members noted her prior projects at Ontario and Palmdale and her leadership on living-wage issues at the airports.
Council action: the council moved approval of Kennard—s appointment at the meeting; the motion carried with 12 ayes recorded at the time the roll was taken. No amendments to the appointment were recorded.
Kennard and airport staff indicated they would provide additional details to the council about the AIP/PFC interplay and the fiscal tradeoffs surrounding acceptance of federal grants; council members signaled they expect follow-up briefings to consider whether to request further analysis from the airport commission.
