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11/19/2019 06K Yakima Air Terminal-McAllister Field; Set 2020 Rates/Charges for Services, Facilities and Uses a\'4\lyy bxk ik 1 1-:41 Pp g dP s d+ eAe lii it tYlltYlA.\ta. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 6.K. For Meeting of: November 19, 2019 ITEM TITLE: Resolution authorizing the City Manager to set the 2020 rates and charges for services, facilities and uses available at the Yakima Air Terminal-McAllister Field SUBMITTED BY: Robert Peterson,Airport Director, 509-575-6149 SUMMARY EXPLANATION: On October 17th, 2019, City Council conducted a study session during the 2020 budget preparation and approved the following rate increases at the Yakima Air Terminal-McAllister Field: • Boeing Test Flight Landing Fees: $80 Per Landing • Airline Charter Terminal Fees: $300 Per Use • Airline Divert Terminal Fees: $350 Per Use • Fuel Flowage Fees: $0.10 Per Gallon A recent survey of airport rates were assessed and determined the rate increases are within industry standards and comparable to neighboring airports. Estimated additional revenues are $6,956.71 or 0.47% of the airport's budget. ITEM BUDGETED: Yes STRATEGIC PRIORITY: Public Safety APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Adopt Resolution ATTACHMENTS: Description Upload Date Type D o olution 10/23/2019 Igo olution • Policy Issue 10/221201 aokup Material L 2020 Airport tos and hargos 10/221201 aokup Material 2 RESOLUTION NO. R-2019- A RESOLUTION authorizing the City Manager to set the 2020 rates and charges for services, facilities and uses available at the Yakima Air Terminal-McAllister Field. WHEREAS, the City owns and operates Yakima Air Terminal-McAllister Field in accordance with applicable Federal, State and Local regulations; and WHEREAS, the Yakima Air Terminal-McAllister Field is a City enterprise operation; revenues collected are utilized in support of the daily operations and maintenance functions at the airport; and WHEREAS, the Yakima Air Terminal-McAlister Field has established rates and charges for aeronautical and commercial property; these rates and charges are reviewed annually to ensure they are comparable to rates and charges imposed at neighboring airports; and WHEREAS, the City is obligated under Federal Aviation Administration Grant Assurances to maintain a fee and rental structure for the facilities and services at the airport which will make the airport as self-sustaining as possible; and WHEREAS, in October 2019, the Yakima Air Terminal-McAllister Field conducted a rates and charges survey of airports within the Pacific Northwest and as a result has determined that the proposed 2020 rates are within industry standards and comparable to neighboring airports; and WHEREAS, on October 17h, 2019, the City Council conducted a study session during the 2020 budget preparation and approved a Policy Issue, attached hereto and incorporated herein by this reference, which includes an increase in fuel flowage fees to $0.10 per gallon; an increase in Boeing landing fees to $80 per landing; an increase in terminal rents as it relates to airline charters to $300 per use; and an increase in terminal usage fees as it relates to airline diversions to $350 per use; and WHEREAS, the City Council has determined that approval of the 2020 rates and charges is in the best interests of the City of Yakima and will promote the purposes of the Yakima Air Terminal- McAllister Field; now, therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized and directed to execute the 2020 rates and charges schedule, attached hereto and incorporated herein by this reference, on behalf of the Yakima Air Terminal- McAllister Field. ADOPTED BY THE CITY COUNCIL this 5th day of November, 2019. ATTEST: Kathy Coffey, Mayor Sonya Clear Tee, City Clerk 3 Enterprise X Requested Amount General Government ❑ CITY OF YAKIMA Public Works ❑ POLICY ISSUE REQUEST Strategic Priority: X Economic Development ❑ Public Safety ❑ Build Healthy Communities and Neighborhoods ❑ Partnership Development Brief Summary: The Yakima Air Terminal-McAllister Field is operated as an enterprise fund as all revenues collected from tenants and users help fund the maintenance and operations of the airfield. The airport has been successful in attracting businesses, tenants, and expanding airline services to increase the overall revenues at the airport. Tenants throughout the airfield have been fortunate the City of Yakima has not increased rates and charges since 2011, due to the efficiencies of staff maintaining a minimal maintenance and operations budget. However,due to the continued increase in expenses to operate the airport to ensure safety standards with the Federal Aviation Administration are upheld, it is recommended the airport implement a minimal increase to its rates and charges. This offsets the increased expenses with the mandated additional snow removal equipment and deicing capabilities. The following rates and charges are recommended to be increased in the 2020 budget, of which is below the average threshold of airports surveyed throughout the Pacific Northwest: Line Item 2019 2020 Difference Additional Revenue Boeing Test Flight 70* $80* 14.2% $284.00 Landing Fees Airline Charters Terminal Fees $250** $300** 20% $600.00 Airline Diverts $300** $350** 16.6% $250.00 Terminal Fees Fuel Flowage Fee $0.09*** $0.10*** 11.1% $5,822.72 Total Annual $6,956.72 or Revenue 0.47%Increase in 2020 Budget * Landing fees are assessed on per landing as outlined in Boeing's agreement. ** Terminal fees are assessed based on a per use(average 12 charters/year). *** Fuel Flowage Fees are assessed based on per gallon delivered to fuel storage tanks. 4 Impact- Describe all that apply ❑ Reorganization of Staff Increase/Decrease ❑ New Assets X Fee Increase/Decrease or services provided ❑ Associated Risk ❑ Other/ Explain PROPOSED ACTION DATE: (Please check all that apply) Budget Year Budget Amount X Budget in 2020 $6,956.72 ❑Budget in 2021 ❑Budget in 2022 ❑Budget in future period (Specify year) Total $6,956.72 EXPECTED COSTS:Additional Cost of postponement: (Check one) ❑ Per year X in total. What will be the impact or risk to City of postponement? Please Explain? Expenses will increase upon the receipt of new Snow Removal and deice equipment due to updated safety standards administered by the Federal Aviation Administration. Airport budget would absorb increased expenses and might have the potential of impacting other services provided to the aviation industry. Budget Fund 421 895-4421 5 !Pk .z i .. - xf. „x . ... '.5 v... a.rid:..tt w .w.vv.. 5 .. w.w,r v. 2406 W.Washington Ave,Suite B Yakima,Washington 98903 (509)575-6149 (509)575-6185 FAX Rates and Charges (Effective January 1, 2020) Commercial Scheduled Air Service (signatory airline) Landing Fee (per 1000 lbs MLW) $1.37 Terminal Use (per square foot per year) $26.47 Charter Air Service or Non-signatory airline Landing Fee (per 1000 lbs MLW) $1.75 Terminal Use (per flight) $300.00 Terminal Use (per square foot per year) 32.00 Freight Air Service Landing Fee (per 1000 lbs MLW) $1.37 Other Aircraft-Related Uses Touch & Go Landings (non-YKM resident) (each) $80.00 Unscheduled Landings (Diversions) (each) $300.00 Terminal Usage (unscheduled landings) (per flight) $350.00 Fuel Flowage (per gallon) $0.10 Land Lease (per square foot per year) Undeveloped Land—Aeronautical Use $0.19 Undeveloped Land—Non-Aeronautical Use $0.21 Tiedown(monthly) $45.00 Overnight parking(airport ramp) (per night) ('honor box') $3.00 Boarding stairs/equipment usage (each/per flight) Manual $50.00 Truck $60.00 Per Hour $40.00 ADA lift $60.00 Yat Employee Rate (per hour) $55.00 Terminal Rates (per sq foot per year) 2nd floor $8.50 3rd floor $5.00 Note: MLW is defined as the FAA maximum certificated gross landing weight. Land lease rate for improved land,ie,YAT owned property and facilities,is determined by appraisal. The above rates are subject to change. Additional charges such as taxes and assessment may also apply. Word:budget:rates letter