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HomeMy WebLinkAbout03/17/2020 06F Passenger Facility Charge Application Amendment; U.S. Dept. of Transportation 1 to\'4\lyy tbxk ik 1 d + PPP P P p P 1 PPi ittYlltYlt.\ta. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEM ENT Item No. 6.F. For Meeting of: March 17, 2020 ITEM TITLE: Resolution authorizing an amendment to Passenger Facility Charge application PFC-19-18-C-00-YKM with the U.S. Department of Transportation SUBMITTED BY: Robert K. Peterson,Airport Director, 509-575-6149 SUMMARY EXPLANATION: On June 12, 2019, the City received approval from the Federal Aviation Administration to collect and use revenues from Passenger Facility Charges, up to a maximum of $192,500, to be allocated and used by the City for the financing and construction of various capital improvements and as the City's share of matching funds for construction of capital improvements to the Yakima Air Terminal-McAllister Field. Capital improvements may include, but are not limited to: rehabilitating the primary Runway 9/27 High Intensity Runway Lighting system and associated electrical components and pavement maintenance to include crack, fog seal, and update pavement markings. The original matching fund application that was submitted last year was based on initial engineering estimates. All projects have been fully designed and engineered and as a result, the airport has identified the need to collect additional revenues in order to meet the airport's local match requirements for the planned capital improvement projects. The airport held an airline consultation meeting on March 9, 2020 to review the Capital Improvement Projects and highlighted the need to collect and use additional Passenger Facility Charge funds in order to complete the planned Capital Improvement Projects and the airlines approved the collection of such funds. The City seeks to amend the Passenger Facility Charge application PFC-19-18-C-00-YKM in order to collect an additional $73,500, thereby increasing the maximum amount of funds collected to $266,000. ITEM BUDGETED: Yes STRATEGIC PRIORITY: Public Safety APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOM M ENDAT ION: Adopt Resolution. 2 ATTACHMENTS: Description Upload Date Type D Resolution 211/2020 Resolution D Airline Public Notice 2'11/2020 Backup Material approval rtter 3:1112102 Cover Menlo 3 RESOLUTION NO. R-2020- A RESOLUTION authorizing an amendment to Passenger Facility Charge application PFC-19-18-C-00-YKM with the U.S. Department of Transportation. WHEREAS, the City of Yakima (City) owns and operates an airport and airport facilities known as the Yakima Air Terminal-McAllister Field; and WHEREAS, the City of Yakima has notified the Federal Aviation Administration of its intent to assess and collect Passenger Facility Charges authorized pursuant to 49 U.S.C. §40177 and 14 Code of Federal Regulations, Part 158 (City of Yakima Application No. PFC- 19-18-C-00-YKM); and WHEREAS, on June 12, 2019, the City received approval from the Federal Aviation Administration to collect and use revenues from Passenger Facility Charges, up to a maximum of $192,500, to be allocated and used by the City for the financing and construction of various capital improvements and as the City's share of matching funds for construction of capital improvements to the Yakima Air Terminal-McAllister Field and its facilities; and WHEREAS, the original matching fund application submitted last year was based on initial engineering estimates; now all projects have been fully designed and engineered and as a result the airport has identified the need to collect additional revenues in order to meet the airport's local match requirements for the planned capital improvement projects; and WHEREAS, the airport held an airline consultation meeting on March 9, 2020 to review the Capital Improvement Projects and highlighted the need to collect and use additional Passenger Facility Charge funds in order to complete the planned Capital Improvement Projects and the airlines approved the collection of such funds; and WHEREAS, the City seeks to amend the Passenger Facility Charge application PFC-19-18-C-00-YKM in order to collect an additional $73,500, thereby increasing the maximum amount of funds collected to $266,000, to be utilized as the airport's local match for Capital Improvement Projects; and WHEREAS, the City Council finds and determines that the additional funds should be authorized, collected and used for the purposes stated in City of Yakima Amended Application No. PFC-19-18-C-00-YKM, and authorizes staff to prepare, submit and administer an amended application and documents necessary or appropriate to receive and apply such funds for the stated purposes; and WHEREAS, the City Council finds and determines that such approval and authorization serves the best interests of maintaining the vitality of the Yakima Air Terminal- McAllister Field as an important City asset, as well as promoting the general health, safety and welfare of the City's residents and those utilizing the Airport; now, therefore, 1 4 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: Section 1. The City Council hereby authorizes the receipt and use of funds in the maximum amount of $266,000, or such other amount as may become available from the Passenger Facility Charges authorized pursuant to City of Yakima Amended Application No. PFC-19-18-C-00-YKM and applicable federal laws and regulations, to be used as appropriate by the City of Yakima as a direct source of funding, as well as for City required matching funds, in support of financing programs and grants for designated capital improvement projects for the Yakima Air Terminal-McAllister Field and its facilities. Section 2. The City Manager is hereby authorized to execute, submit and administer the amended application and documents necessary or appropriate to secure the funding authorized pursuant to Section 1 above, and to secure financing funds and grants using such funds as appropriate for City required matching funds for capital improvement projects for the Yakima Air Terminal-McAllister Field and its facilities. ADOPTED BY THE CITY COUNCIL this 17th day of March, 2020. Patricia Byers, Mayor ATTEST: Sonya Claar Tee, City Clerk 2 5 FLyy■ tm Yakima Air Terminal- McAllister Field // 2106 W.Wasnington Ave,Suite B Yakima,WA 98903 (509)575-6419 wwveflyYKM.com Friday, February 7, 2020 To: AIR CARRIERS WITH SIGNIFICANT BUSINESS INTEREST OPERATING AT THE YAKIMA AIR TERMINAL-MCALLISTER FIELD, INCLUDING BUT NOT LIMITED TO: RE: Notice of Intent to submit an amendment of a Passenger Facility Charge (PFC) application to the Federal Aviation Administration for various projects at the Yakima Air Terminal-McAllister Field, and Notice of Consultation Meeting. In accordance with Federal Aviation Regulation (FAR), 14 CFR Part 158.23, the Yakima Air Terminal-McAllister Field is obligated to inform in writing, all air carriers operating at Yakima of its intent to submit an amendment to PFC application # 19-18-C-00-YKM to the Federal Aviation Administration for authority to impose a PFC. This correspondence will fulfill the required outlined in FAR 14 CFR 158.37 (b)(1)(i)(C) and the outline will follow Part 158.23(a) and (b). 158.23(a)(1l PROJECT FAA REQUESTED TOTAL Project Justification TITLE APPROVED ADDITIONAL PFC FUNDS FUNDS Air Stairs. $30,000 $30,000 $60,000 Replacement of depreciated equipment Primary use is for diversion aircraft as well as scheduled charters. Boarding stairs quote was also provided in 2018, which did not take into an account of increased cost of labor, materials, delivery, and training. Another key element omitted in the initial quote was a non-slip filament adhesive with LED lighting for night operations that is applied to the stairs to minimize the ability for the passenger to slip- n-fall as they traverse the platform. Matching funds $112,500 $43,500 $156,000 Primary runway lighting is beyond its useful for an AIP life expectancy. Pavement upkeep ensures Pavement and compliance with the FAA pavement Lighting maintenance requirement Rehabilitation for Runway 09/27 During the initial PFC application process, the HIRL and paved airport received quotes during the 2018 fiscal shoulder Repair. year based on the engineer's initial estimate to rehabilitate Runway 9/27. This estimate was further refined on specific methods of construction implementation in order to minimize the runway closure timeframe as well as the addition of fog sealing the asphalt to increase the asphalts life expectancy by 25 percent. Totals $142,500 $73,500 $216,000 158.23(a)(2) 1. PFC level to be charged will be$4.50 2. The proposed charge effective date is estimated to be 8/1/2020 3. The proposed charge expiration date is estimated to be 12/1/2020 4. Previously approved PFC funds under application 19-18-C-00-YKM, Items#1-4 on approval letter are$192,500 5. Estimated additional PFC revenue to be is$73,500 6. TOTAL funds to be collected under 19-18-C-00-YKM, Items#1-4 are$266,000 6 FLyy■ tM Yakima Air Terminal- McAllister Field // 2106 W.'JJasnington Ave,Suite B Yakima,WA 98903 (509)575-6419 tiwvveflyYKM.com 158.23(a)(3) 1. The Yakima Air Terminal-McAllister Field will request that air taxi/commercial operators be exempt from the charge. 2. CY2018 ACAIS Database-ATCO - Nonscheduled/On-Demand Air Carriers,filing FAA Form 1800-31 Aero Jet Services 4 NetJets Aviation 27 Sunset Aviation 6 ATCO Total 37 3. This class of carriers enplaned 37 passengers in 2018. This represents .05% of the total reported enplanements of 70,378. 4. Historically, this class of carriers has compromise less than 1% of the total boarding's and collection of the PFC would be unduly burdensome to these carriers. 158.23(a)(4) Consultation Meeting: In accordance with 158.23(a)(4), the airport will hold an Air Carrier Consultation Meeting at 10:00am, March 9, 2020 at the Airport Administration Office, 2406 West Washington Ave, Suite B,Yakima, WA 98903. If any additional project information presents itself, it will be available at that time. By utilizing the PFC's funds we will be able to complete the rehabilitation of Runway 9/27 High Intensity Runway Edge Lights, asphalt crack and fog seal, and replaced passenger boarding stairs that have outlined their useful life. Additionally, please discover enclosed with this correspondence the original PFC application#19-18-C-00-YKM and the FAA original approval letter. In the event anyone has any questions, please feel free to contact me at your convenience. Sincerely, Robert K. Peterson Airport Director Pc: FAA, Seattle ADO Pc: Kris Yalovich, Yakima Air Terminal-McAllister Field 7 U.S. Department Northwest Mountain Region Airports Division Colorado,|uaov Montana 2200S.216mou of Transportation Oregon, Utah, - nmnnton. Des Moines,m/aomnutonou1oo Wyoming Federal Aviation Administration June 12. 2018 ^ K8u. KhoYa|ovioh City ofYakima Yakima Air Term ina|-K8cA|lister Field 2408VV. Washington Avenue, Suite B Yakimo, WA 98983 Dear Ms. Yolovioh: � RE: PFC Application: 1048'C'00'YKyN � |n accordance with 49 United States Code (U.S.C.)48117 and Section 158,3O. the Federal Aviation ! Administration (FAA) acknowledges your notice of intent to impose a passenger facility charge (PFC) at ! Yakima Air Terminal/McAllister Field (YKK8) and to use PFC revenue atYKN1, The authority bo impose a PFC is contingent on your continued compliance with the terms o[48U.S.C. 4O117. 14 Code of Federal Regulations(CFR) Part 158 and any conditions included inthis letter. Your notice ofintent, submitted on May 2.2O1A. has been assigned the following PFC number: 19-18-O'00- YKK8. The FAA does not have any particular objections to yourproposed projects nor your notice ofintent. The � FAA acknowledges that you will begin collecting a PFC for YKM at a$4.50 level on September 1, 2020 and complete your collections on October 1. 2O21. Furthermore, the FAA acknowledges that you will collect the following amount for the following project identified below. PFC Approved Num. ~Project� -Title Level Type Status, PFC 001 Aircraft Boarding Stairs(Towmb(o}. $4.50 Concurrent Acknowledged $80.000 002 G|DA Security Software. $4.50 Concurrent Acknowledged $35.000 003 Runway OQ/27 Lighting Replacement and *4.50 Concurrent Acknowledged $112.500 Pavement Repair, 004 Airport Beacon Replacement. $4.50 Concurrent Acknowledged $n5"Vq0 Total $192.500 All projects are poy-mm_you-go financed. The public agency did not receive any disagreements aooresult of their public notice and air carrier consultation meeting. The FAA also acknowledges your proposal to exempt that class of air carrier defined as Air taxi/commercial operators-Non-scheduled/On-demand carriers filing FAA Form 1800'31 and FFC Foreign Air Carriers, filing Form T'1O0(f). from the requirement tocollect the PFC. VVe request that you notify the carriers in each excluded class, which were listed in your notice of intent, of their exemption. All public agencies collecting PFC'm are subject to naportinQ, vacondkeeping, and auditing requirements as described in Part 168. Subpart O (section 1SO.81 et, seq.). Specifically, you are reminded that, pursuant ba 158.67(c), at least annually during the period the PFC is collected, held or used, each public agency shall provide for an audit of its PFC account. After completion of your audit, please provide the ADO a copy of the audit. 8 , 2 The date must be the first day of the month and must be at least 30 days from the date of this letter. We request that you provide o copy of your notice ho the FAA when you notify the domestic and foreign air carriers to begin collecting PFC's, Also, you are responsible for coordinating any construction with the appropriate federal officmm, as you would with any non'hadeuaUyfundad construction. Be advised, section 158.33(a)(1) requires you to implement your concurrent impose and use projects, that the FAA has not objected to. within 2 years of the date ufthis letter. Section 158.33(e)(1) requires the public agency to begin implementation of a project no later than 2 years after receiving approval to use PFC revenue on that project, Also be odxioad, that the ability to collect on this application is governed by either the charge-expiration date, noted above, or when full collection authority(PFC collections plus interest) is reached -whichever comes first. Therefore, itio important to monitor your rate ofcollection. A decision summary table showing the cumulative history of PFC decisions for YKM is enclosed for your use. We have also enclosed the list of advisory circulars with which you must comply in accordance with your certification o[assurance number 0. Standards and Specifications. Also, you may wish Ko check out ourwebm|be to confirm whether this action has been recorded on the'PFC Approved Locations, OoUanUonn. and Expiration Dates' report, |tis generated each month. and is located at vvwxw.hya.gov/eirpods/phz/nonth|y_neporto. If you have any questions pertaining to this mpp|icodon, please contact yNu. Jennifer Kande| of the Seattle Airports District Office, at: (3OS) 231-413S. Sincerely, , Christopher J. Sc ffer, Manager p|annm0. Environmental and Financial Programs Branch Northwest Mountain Region Enn|onunoo 9 3 Decision Summary Report Application Approved for Approved for Number Collection Use 92-01-C-00-YKM* $407,202 $407,202 94-02-C-00-YKM 14,670 14,670 95-03-C-00-YKM 178,850 178,850 96-04-C-00-YKM 965,075 965,075 00-05-C-00-YKM 219,660 219,660 01-06-U-00-YKM 0 23,534 01-07-I-00-YKM** 0 0 02-08-C-00-YKM' 55,000 55,000 02-08-C-01-YKM (12,195) (12,195) 05-09-C-00-YKM* 198,184 198,184 05-09-C-01-YKM 19,714 19,714 05-10-C-00-YKM* 701,494 701,494 05-10-C-01-YKM 10,653 10,653 08-11-C-00-YKM* 783,961 483,961 08-11-C-01-YKM (326,231) (144,394) 09-12-U-00-YKM* 0 418,163 09-12-U-01-YKM 0 (300,000) 10-13-C-00-YKM* 178,995 178,995 10-13-C-01-YKM 9,235 9,235 12-14-C-00-YKM 703,801 703,801 12-14-C-01-YKM 203,814 203,814 12-14-C-02-YKM 134,369 134,369 15-15-C-00-YKM 405,000 405,000 15-15-C-01-YKM 55,000 55,000 17-16-C-00-YKM 614,000 614,000 18-17-C-00-YKM 310,000 310,000 19-18-C-00-YKM $192.500 $192,500 Report Total $6,022,751 $6,022,751 *Closed applications. **Impose only application deleted in whole.;