HomeMy WebLinkAboutR-2020-110 Yakima Air Terminal Parking Lot Expansion; Agreement with DOTA RESOLUTION RESOLUTION NO. R-2020-110 authorizing an agreement with the Washington State Department of Transportation — Aviation Division for a $353,694 loan to expand the Yakima Air Terminal's main vehicle parking lot to meet growing passenger demands. WHEREAS, as highlighted in the City Council's Economic Development Strategic Plan the Council has identified air service development to Yakima as a strategic priority; and WHEREAS, expanding the Yakima Air Terminal -McAllister Field's vehicle parking lot is necessary to accommodate the increase in passenger numbers during peak travel times; and WHEREAS, on July 1, 2019, the Washington State legislature established a Community Aviation Revitalization Board (GARB) Loan Program to provide airports with a funding source to develop revenue generating projects; and WHEREAS, the Washington State legislature has provided up to $5 million dollars, available under the State's 2019-2021 capital budget, to fund loans to airports, many of which may need better access to financing in order to invest in revenue producing projects; and WHEREAS, the proposed Yakima Air Terminal -McAllister Field parking lot improvement project will maximize the use of the airport property adjacent to the main terminal building and will include installing needed parking lot lighting, curb and gutter system for proper water drainage, and will expand passenger vehicle parking availability during peak travel times; and WHEREAS, the current Yakima Air Terminal -McAllister Field parking capacity is not adequate to meet the growing passenger demands; the proposed project improvements are needed to provide additional passenger vehicle parking to meet the increasing demands and to attract more air travel to and from the airport; and WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to authorize the attached and incorporated CARB loan application with Washington State Department of Transportation — Aviation Division, the proceeds of which would be used for funding airport parking lot infrastructure improvements, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: 1. The City Manager is hereby authorized and directed to execute and submit the attached and incorporated loan application to the Washington State Department of Transportation — Aviation Division for funding from the Community Aviation Revitalization Board (CARB) Loan Program, to expand and improve the main airport terminal building passenger vehicle parking lot. 2. If loan funds are awarded, the City Manager shall bring the associated loan agreement necessary to complete the loan transaction to the City Council for approval. ADOPTED BY THE CITY COUNCIL this 6th day of October, 2020. ATTEST: Patricia B - rs, Mayor Washington State Depart of Transportation Aviation Division "A Steward for Washington's Aviation System" 7702 Terminal Street SW Turnwater, Washington 98501-7264 Applicant: Yakima Air Terminal -McAllister Field Applicant's Authorized Representative: Name: Bob Harrison Title: City Manager Address: 129 N Second Street Address 2: City: Yakima State: WA Phone: 509-575-6040 Cell: Email: bob.harrison@yakimawa.gov Federal Tax ID: 91-6001293 Find your legislative and congressional district at: http://app.leg.wa.gov/districtfinder/ Airport: KYKM FM Classification: Small/Non-Hub Legislative District: 15th Aviation - evitalization Loan Program Application No, 1 5 Date of Request 9-16-2020 Project to be Managed by: Company: City of Yakima Name: Robert Peterson Address: 2406 W. Washington Ave, Suite B Address 2: City: Yakima State: WA Zip: 98903 Phone: 509-575-6149 Cell: 509-833-0898 Email: rob.peterson@yakimawa.gov Zip: 98901 NPIAS E Non-NPIAS State Classification: Major Congressional District: 4th Enter number of annual commercial equipment enplanement last reported to FAA: 68,850 FtRiect Name and Description L Total Proiect Cost Local Funds 400,000 Main Terminal Building Vehicle 753,694 Parkins Lot Expansion Does the airport have an up-to-date Master Plan or ALP Narrative Report? Does the airport have an approved Airport Layout Plan (ALP)? Was the annual requirement to review and update Airport Information System (AIS) data met for the preceding calendar year? Does the airport sponsor have policies to reduce greenhouse gas emissions? If yes, submit a copy of the policies. 6 Signature of Applicant's Authorized Representative *On/y sign IF printing and submitting original paper document, provide signature here. IF submitting applicoti4n eloctronically (PDF ilocurnent), Email must be sent directly from airport's authorized representative. General Public Access 171 Yes 10 No State Grant Federal Grant Funds Funds Loan Request 0 0 353,694 Yes LI No Date: 2015 Yes 0 No Date: 2015 Yes I0 No 0 Yes 0No Submitting copy via: Choose an item CITY CONTRACT NO: RESOLUTION NO: DOT Form 900-031 Revised 01/2020 Page 2 Washington State Depart of Transportation Aviation Division "A Steward for Washington's Aviation System" A»»^@Bt~on Revitalization Loan Application Project Data Sheet Complete mseparate Project Data Sheet for each project listed from the Airport Aid Application (Form 900-031) 1. Project Category (Select One Only) 'OHangar OFueUng Q3|nfrastructure OPassenger Amenities OPmpdy New O New O Utilities O Terminal O Business Park El Replace El Replace El Apron OR Parking El Retail U Renovate O Upgrade El Taxiway ORestauranVFnud O Other 0 Other 11 Other 0 Other 0 Rental El Other ` m 2. Detailed Project Description /Apprmmoh6mAccomplishing Project: |n20l3, the City of Yakima identified air service development as being a key strategic priority in order to enhance the Yakima �Valley's businesses and economy. Since adopting this priority, the City has been successful in growing the airport's passenger ridership by31 percent and securing afourth flight to Seattle -Tacoma International Airport. Additionally, the airport ininthe � process of conducting a business and passenger survey to identify how to continue this success by adding an additional destination, which will only positively impacthe airport's passenger ridership. .As passenger ridership continued mgrow over the past 5years, the airport has witnessed anincrease inthe number ofvehicles utilizing the main terminal building's parking lot. During peak travel times between October and April, the airport witnessed vehicle parking exceeding the current capacity and alternative parking arrangements had to be implemented to accommodate passengers. As passenger ridership recovers from the COVID-19 pandemic, the airport will continue to witness vehicle capacity exceed the present parking facilities. E] Other This project will construct approximately 130 additional vehicle parking stalls northwest of the main terminal building and where the parking lot will baconverted into long-term parking. This will free up parking in the current parking lot to facilitate short-term parking and car rental parking in order to accommodate additional passenger traffic. 3. Project Justification: — Airport vehicle parking is one of many significant revenue generators at the Yakima Air Term i nal-McAllister Field. In 2013, the airport recorded $273,149 where gross revenues have grown to $446,775 due to increased passenger ridership. The additional vehicle parking facility will increase the amount of parking revenue during peak travel periods. These additional revenues are not only collected through increased vehicle parking capacity but through revenue management control. Revenue management control is enhanced by designating a specific location for long-term or overflow parking compared to current contingency plan of overflowing to neighboring parking lots where passenger vehicles are missed during daily parking audit. Based on historical data the number of vehicles forced to utilize short-term or overflow parking, it's anticipated the additional �vehicle parking lot facilities will attract15-30 vehicles per day during peak travel season. ridership increases, � � passenger ,a�po�wW|respectively receive additional revenue from passenger utilizing the vehicle parking lot. These additional revenues collected will beallocated k,assist with repayment ofthe C8RBloan. 4. Cost Estimate Details: Source ofProject Cost Estimate —750.UUO JUB Engineering, Inc. provided cost estiamtes to design, engineer, and construct approximately 130 vehicle parking stalls will �nuo $753.884. " �5. Project Gubmduko: — Expected Start ofProject: June 2O21 (Design &Eng.) Expected Completion ofProject: June 2U22(ConatruuVmn) U � Start o[Work Covered byLoan: June 2O21(Design &Eng.) Completion ofWork Covered byLoan: June 2O22(ConotrucVon)Submit a detailed project schedule (to include project milestones). Submitting project schedule via: Choose an item, 6. Other Supporting Project Documentation (Required): DOT Form 900o1A on State Depart of Wansportation Aviation Division "A Steward for Washington's Aviation System" Submit a spending and repayment plan identifying anticipated loan expenditures and repayment schedule by month. Submit job creation data using the Aviation Economic Impact Calculator, 7. Other Supporting Project Documentation (As Applicable): Submit documentation supporting your consultant selection process. Submit a copy of your consultant's Scope of Work. Have project plans and specifications been prepared? Has the property been appraised? FAA AIP Project Number (if any): N/A FAA Grant Contract Number (if any): N/A Other supporting documentation? Airport Layout Plan, Parking Gross Revenues Report, Current Parking Map, Concept Design of Vehicle Parking Facility, viation pplication evitalization Loan Project Data heet Choose an item Choose an item. Submitting via: Submitting via: Submitting via: Submitting via: I=1 Yes rl No 0 Yes 02 No Choose an item, Choose an item. DOT Form 900-031A Revised 01/2020 Page 6 WashilrWon State Depart of Transportation Aviation Division nSteward for Washington's Aviation System" A««~@Bt^on Revitalization Loan Program �&��K�U^���^��� ���K���U�������U U���~�����^��n Application Supplemental ~�' Justification ~~~^ Complete mseparate Su; lemental�u��a�nh��c project listed . . . �����. ���� —. 1, Can you provide conclusive evidence that the loan project will provide revenue generating income NYes �rJ/oo opportunities? If yes, please provide details. The Yakima Air Terminal -McAllister Field has established specific rates and charges that apply mpassenger vehicle parking. Upon completion orthe parking lot, itwill heavailable 0opassengers that will utilize the lot for long-term vehicle parking. In turn, this will provide the airport with additional revenue and capture passengers who might not have chosen to park at the airport during their travels due to the current capacity issues, �2. Will aspecific private development mexpansion occur, only if the aviation facility improvement is OR Yes ONo made? Ifyes, explain. Expansion ufvehicle parking lot will allow the airport mfacilitate future growth eudrelates uuair service development. This in turn improves profitability of airport concessions, rental cars, and airline personnel. |3. Wiil this loan project result in the creation of jobs urprivate sector capital investment? If yes, please 01 Yes ONu elaborate. A Initial construction activities will require the contractor to hire or retain employees. Upon completion of the vehicle parking lot, the � airport contractor will be required to audit the vehicle parking lot to ensure passengers are making their appropriate payments to the airport. Additionally, the airport is exploring options to accommodate Perry Technical Institute students who may need 1 additional vehicle parking facilities during their peak instructional sessions. This will allow PTI to focus on developing their vacant properties for additional instructional facilities, which in turn would create and retain additional jobs at the institute. 14. Does this loan project improve opportunities for the successful maintenance, operations, or expansion 0Yno El No ufthe airport n,adjacent business park? |fyes, explain. Expanded vehicle parking will provide the opportunity for the airport to retain and seek additional air service and ground transportation services aithe Yakima Air Term ino|'McA||istorField. 5. Does this project result in the creation o,retention uflong-term economic opportunities? |fyes, mYwo ONo elaborate. As the airport continues to expand both air service, airport concessions, and ground transportation services it will in turn create additional long-term economic opportunities through spending and job creation.Additional air service means additional customer service agents, vehicle parking, car rentals, and concessions utilized in the terminal building. O. Does this project result inleveraging additional federal funding for the airport? Ifyes, explain, . Project Roudinosn a, Has required environmental documentation (*.g.NEP/VSEPA)been approved? b. |aproject ready toproceed immediately? Design, engineering, and construction activities are all funded from the loan program. If loan is not granted, the airport will continue voseek alternative funding sources huinitiate the project. Land Use Compatibility: a. Does the local land use jurisdiction recognizeth airport moanEssential Public Facility inits comprehensive plan? If yes, provide reference to the specific location(s) in the plan. City ofYakima Comprehensive Plan b Does the comprehensive plan include policies and/or zoning in place that discourages the development ofincompatible land uses adjacent hvthe airport? |fyes, provide reference mthe specific |onobon(s)inthe plan. City ofYakima Comprehensive Plan — Chapter 0 YN1CChapter 15.3DAirport Safety Overlay Zone DOT Form y000 m Revised 01/2020 Q1 Yes El No Aviation Division State of Trans "A Steward for Washington's Aviation System" viation pplication evitalization Loan ro • ra up • e ental Justification c. Are regulations and/or zoning in place that prohibit penetration of FAR Part 77 surfaces? If yes, Yes 0 No provide references to the specific regulation(s). City of Yakima Comprehensive Plan — Chapter 6 YMC Chapter 15.30 Airport Safety Overlay Zone DOT Form 900-031B Revised 01/2020 Page 9 YAKIMA AIR TERMINAL-McALLISTER FIELD Repayment Plan Estimated Protect Cost: Estimated Project Schedule Project Start Date Project End Date Payment Deferrment Date loan Amount $ 353,694.00 Year Payment Percentage 6/1/2021 6/1/2022 1/1/2024 Remaining Amount Interest 2024 $ 20,000.00 0.021 333,694.00 7,073.88 2025 $ 20,000.00 0.02 313,694,00 $ 6,673.88 2026 $ 20,000.00 0.02 2027 $ 20,000.00 0.02 2028 $ 20,000.00 0.021 2029 $ 20,000.00 0.02 2030 $ 20,000.00 1 0.02' 293, 694.00 273, 694.00 253,694.00 233,694.00 213,694.00 6,273.88 5,873.88 5,473.88 5,073.88 4,673.88 2031 $ 20,000.00 0.02 2032 $ - 20,000.00 0.02 2033 $ 20,000.00 0.02, 193,694.00 173,694.00 153,694.00 $ 4,273.88 $ 3,873.88 $ 3,473.88 2034 $ 20,000.00 0.02', 2035 $ 20,000.00', 0.02 2036 $ 20,000.00 0.02, 2037 $ 20,000.00 0.02' 133, 694.00 113, 694.00 93, 694.00 73,694.00 3,073.88 2,673.88 $ 2,273.88_ 1,873.88 2038 $ 20,000.00 ,,, 0.02 2039 $ 20,000.00 0.02 53,694.00 33,694.00 1,473.88 1,073.88 ..... . 2040 20,000.00 0.02 2041 $ 20,000.00 ! 0.02 2042 $ 20,000.00 0.02 2043 $ 20,000.00 ! 0.02 13, 694.00 673.88 -6,306.00 -26,306.00 -46,306.00 2044 $ 20,000.00 0.02-66,306.00 273.88 Total Repayment F $ 420,000.00 Spending Plan Month Phase Amount 6/1/2021 Design $ 6,250.00 7/1/2021 Design $ 6,250.00 8/1/2021 Design $ 6,250.00 9/1/2021 Design $ 6,250.00 10/1/2021 Design $ 6,250.00 11/1/2021 Design $ 6,250.00 12/1/2021 Design $ 6,250.00 1/1/2022 Design $ 6,250.00 2/1/2022 Design $ 6,250.00 3/1/2022 Design $ 6,250.00 4/1/2022 Design $ - 5/1/2022 Design $ - 6/1/2022 Construction $ 337,500.00 7/1/2022 Construction $ 341,194.00 8/1/2022 Closeout $ 6,250.00 9/1/2022 Closeout $ 6,250.00 TOTAL $ 753,694.00 66,129.84 Total Interest Paid IPROJECT: PROJECT DESCRIPTION: CLIENT: ENGINEER'S OPINION OF PROBABLE COST YAKIMA AIR TERMINAL-"MCALLISTER FIELD DATE: 9/21/2020 PARKING LOT EXPANSION CITY OF YAKIMA CLIENT PROD, NO, J-U-B PROJ. NO.: ITEM NO« Note: DESCRIPTION SCHEDULE OF VALUES QUANTITY UNIT UNIT PRICE TOTAL COST Pipe and fittings assume all pipe trenching, backfill, compaction, pipe bedding, trench safety and testing is Included in unit price. Special Signage is not included. Landscaping and Irrigation improvements are not included. SUBTOTAL $508,617 SALES TAX 8.30% CONTINGENCY 10,00% SUBTOTAL DESIGN CONSTRUCTION ENGINES J-U-B ENGINEERS, INC. $42,215 $50,862 $601,694 $61, 000 RING $91,000 TOTAL ESTIMATED COSTS $753,694 422 W RIVERSIDE AVE, SUITE 304, SPOKANE, WASHINGTON 99201 (509) 458-3727 &4 wsiwwwww:w, Airport: Sponsor: Consultant: FAA Project Mgr. (If any): Project Description: PROJECT SCHEDULE r A411)1/4 "q1/14— 61( 1)54C" 1.:J FM AIP Grant No. Instructions: Enter the estimated and actual(if they have occurred), milestones dates (MM/DD/YY) for your project in the appropriate spaces. The milestones do NOT have to be in chronological order. Not all milestone items will apply to your project. Enter "N/A' under the "Comments" space for those items that do not apply. ITEM 1. Issue Request for Qualificiations (RFQ) 2. Consultant Selection .1. Work Scope and Record of Negotiations Date Estimated Actual Comments i ia II-1 4. Signed Engineering Contract 5. Environmental Approved 6. Benefit -Cost Analysis 7. Plans & Specifications Complete 13. Submission of Airspace Study 9. Coordination with Planning/Permit Agencies 10, Construction Safety Phasing Plan 11. Bid Advertising Witt I 1-141 le 124- 2-.1 w II A 12. Pre -bid Meeting ifi 13, Bid Opening 14. Submit Bid Tab and Recommendation of Award 15. Award of Contract 16. Pre -construction Meeting 17. WSDOT Aviation Revitalization Loan Application 18_ WSDOT Aviation Revitalization Loan Issued 19. FAA Grant Application (If any) ;20, FAA Grant Issued (If any) 21. Start Construction 22. Construction Complete 23. Final Inspection At/i/vt.- Ths12.‘• .940 1-d/4 if22, _ciVi/LL eqg 123. Ai 4- 9/22/2020 WSDOT Aviation - Economic Impact Calculator W ntni ate part t of 1$01e tion Economic Impact Calculator Yakima Air Terminal (McAllister Field) Airport Capital Annual Budget Airport Operational Annual Budget Other On -Airport Capital Expenditures COMMERCIAL # Enplanements (people) % Visitors Total Visitors COMMERCIAL Lodging $ per trip Restaurant/bar $ per trip Local transportation $ per trip Retail $ per trip Entertainment $ per trip Total spending $ per trip Baseline Scenario Spending Employment Baseline Scenario GENERAL AVIATION 69,510 69,510 I # Operations 35.06 % Transient operations Avg # of people per operation 24,3/2 24,372 Total Visitors Visitor Spending Baseline Scenario $136 $136 $71 $90 $54 )Detail 0 Total GENERAL AVIATION Lodging $ per trip Restaurant/bar $ per trip Local transportation $ per trip Retail $ per trip Entertainment $ per trip Total spending $ per trip Copyright WSDOT (c) 7020 $4,952,388 $1,599,919 $0 Results Baseline Scenario 33,702 25.84 4 ‘.1 ' 17,417 Baseline Scenario $118 $119 111 $62 $79 $47 $425 f https://e/sdotwa.gov/aviation/planning/economiccalc 1/1 9/22/2020 WSDOT Aviation - Economic Impact Calculator Economic Impact Calculator Yakima Air Terminal (McAllister Field) Economic Impacts Summary ImpType Direct impact On -Airport Temporary Construction Visitor Spending Supplier (Indirect) Impact On -Airport Temporary Construction Spending Employment Economic Impact by Industry for Total State v Visitor Spending Income Re -spending (Induced) Impact On -Airport Temporary Construction Visitor Spending Total Impact On -Airport Temporary Construction Visitor Spending On -Airport Jobs Temporary Construction Jobs Economic Impacts Summary Jobs Labor hrcoirw C20—i 1,041 677,312,000 818 $69,886,000 31 $1,952,000 192 $5,473,000 605 $44,990,000 564 $42,355,000 8 $542,000 33 $2,089,000 718 $38,870,000 670 $36,119,000 11 $686,000 37 $2,064,000 2,364 $161,172,000 2,052 $148,362,000 50 $3,181,000 262 $9,628,000 CopyrIght WSDOT © 2020 1/8189 Added (I) $150,928,000 $137,861,000 $2,635,000 $10,431,000 $68,069,000 $63,572,000 $871,000 $3,627,000 $70,202,000 $65,230,000 $1,239,000 $3,731,000 $289,198,000 $266,667,000 $4,744,000 $17,788,000 Results Visitor Spending Jobs Business Revenues ($) $360,900,000 6339,096,000 $4,952,000 $16,852,000 $116,227,000 $108,737,000 $1,474,000 $6,015,000 $113,906,000 $105,845,000 $2.,008,000 $"51'a°° $591,034,000 53,678,000 $8,434,000 $28,918,000 https://wsdot.wa.gov/aviation/planning/economiccalc 1/1 9/22/2020 WSDOT Aviation - Economic Impact Calculator hinetou Siete Department of *Man Economic Impact Calculator Yakima Alr Terminal (McAllister Field) Spending Employment Results [Data vi Economic Impact by Industry for Total State Economic Impacts Summary On -Airport Jobs Temporary Construction Jobs Visitor Spending Jobs Jobs by Sector (Temporary Construction) 111-115, 2111-213 Agriculture & Extraction 221 Utilities 230 Construction 311-339 Manufacturing 420 Wholesale Trade 441-454 Retail Trade 481-488 Transportation 491-493 Postal & Warehousing 511-519 Media and information 521-35325, 531 -533 Financial Activities 541,551,561-S62 Professional & Business L. 611, 621-624 Education & Health 711-713, 721-722,811-814 Other Services 920 Government Total Copyright WSDOT C) 2020 0 0 31 0 0 0 0 0 0 0 0 0 0 0 31 0 0 0 0 0 0 1 0 1 0 2 0 0 0 1 2 0 1 0 8 2 0 0 0 1 1 3 4 0 1 1 3 0 4 0 0 0 2 3 3 5 0 so https://wsdot.wa.gov/aviation/planning/economiccalc 1/1 Yakima Air Terminal -McAllister Fi Parking Lot Revenue rn cr) 0%1 o ; o 00 rr:i. ; m 0 N 411 L^ 00 0001 N o o o o ci 6 d o d 00 d 00 o o 0 8 0 0 0 0 0 0 .," 0 0 0 0 0 0 0 0 0 0 0- d o- d o' d d dd o in 0 L.r) 0 tn o in o in LA1 cr Cr m In ry N I-1 1-1 in anuanaki sscup 0 0 0 8 0 0 0 0 9 0 0 rsi 01 N-1 0 N 00 1-1 rJ N I/1 r-1 0 N a\'4\lyy bxk ik 1 PP1-:4d PPP g. A PPPPPP+Pd s' lii it tYlltYlA.\ta. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 4.F. For Meeting of: October 6, 2020 ITEM TITLE: Resolution authorizing an agreement with the Washington State Department of Transportation—Aviation Division for a$353,694 loan to expand the Yakima Air Terminal's main vehicle parking lot to meet growing passenger demands SUBMITTED BY: Rob Peterson,Airport Director, 509-575-6149 SUMMARY EXPLANATION: In 2013, the City of Yakima identified air service development as being a key strategic priority in order to enhance the Yakima Valley's businesses and economy. Between 2013 and March 2020, the City has been successful in growing the airport's passenger ridership by 31 percent and securing a fourth flight to Seattle-Tacoma International Airport. Additionally, the airport is in the process of conducting a business and passenger survey to identify how to continue this success by adding an additional destination, which will only positively impact the passenger's utilizing the airport. As passenger ridership grew over the past 5 years, the airport experienced an increase in the number of vehicles utilizing the main terminal building's parking lot. During peak travel times between September and April, the airport witnessed vehicle parking exceeding the current capacity and alternative parking arrangements had to be implemented to accommodate passengers. As passenger ridership recovers from the COVI D-19 pandemic, the airport will continue to witness vehicle capacity exceed the current parking facilities. This project will construct approximately 130 additional long term vehicle parking stalls northwest of the main terminal building. This will free up parking in the current parking lot to facilitate short- term parking and car rental parking in order to accommodate additional passenger traffic. This project will produce additional parking lot revenues and will be a dedicated source of funds to repay the loan. Initial loan details outline a 2% interest rate with a 20 year repayment term. Additionally, the loan is structured to allow the airport to request a grace period of up to 3 years while the project is constructed and passengers begin to utilize the new long-term parking lot. Although airport revenues have decreased during the Coronavirus pandemic, aviation industry experts forecast the transportation industry will rebound within the next two years restoring airport revenues to further support repayment of the loan. 2 ITEM BUDGETED: No STRATEGIC PRIORITY: Economic Development APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Adopt Resolution. ATTACHMENTS: Description Upload Date Type 6 Resolution B'22/2020 Resoikdion D Loan Application 9/222620 Backup Material