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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 4.H.
For Meeting of: December 1, 2020
ITEM TITLE: Resolution authorizing the initiation of an airline incentive program at
the Yakima Air Terminal-McAllister Field
SUBMITTED BY: Robert K. Peterson,Airport Director, 509-575-6149
SUMMARY EXPLANATION:
In 2017, City Council adopted the Economic Development Strategic Plan, which included a plan
to spur and sustain growth of Yakima's economy over the long-term by collectively working to
grow quality jobs. Air service development was identified by the City Council as one of the
strategic initiatives needed to competitively meet the travel needs of local businesses and
residents. In order to attract additional air service, the City of Yakima must consider an air carrier
incentive program. This incentive program is one of many tools utilized to encourage public-
private partnerships that will leverage a Department of Transportation Small Community Air
Service Development Grant to attract a prospective airline to the Yakima community. This plan
will also enhance air carrier service at the airport and may create an opportunity to increase
passenger traffic, which will increase revenues to further support operations, maintenance, and
capital improvements at the airport.
The goals of the incentive program are to:
• Increase passenger and/or cargo airline activity at the airport;
• Attract new/additional passenger and/or cargo air service to the Yakima market;
• Increase the number of non-stop destinations served from Yakima;
• Increase the number of passengers traveling through the Airport;
• Increase the amount of cargo processed at the Airport;
• Increase non-airline revenues (concessions, parking, car rentals, etc.) at the Airport;
• Help mitigate the financial impacts on passenger airlines when beginning passenger service
at the Airport;
• Compete with other airports seeking to attract new entrant passenger airlines.
The air carrier incentive plan lays out three different scenarios where airlines may apply and
receive discounted rates and charges as they begin new service from the airport. These
discounted rates span from 30-50% off landing and/or terminal fees in order to help offset the
financial hardships with an airline launching service. These discounted fees apply to the first 12
calendar months of service where the airline would be subject to the full rates and charges
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established by City Council.
ITEM BUDGETED: NA
STRATEGIC PRIORITY: Economic Development
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
Adopt Resolution
ATTACHMENTS:
Description Upload Date Type
D Resolution 11/1 61 2 02 0 Resolution
D Air Carrier Incentke Program 11/1 61 2 02 0 Backup Material
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RESOLUTION NO. R-2020-
A RESOLUTION authorizing the initiation of an airline incentive program 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, in 2017, City Council adopted the Economic Development Strategic Plan, which
included a plan to inspire and sustain the growth of Yakima's economy over the long-term by
collectively working to grow quality jobs; and
WHEREAS, local air service development was identified as an important strategic initiative
in order to competitively meet the travel needs of local businesses and residents while providing
quality air service to grow both the economy and local tourism while providing benefits to the
community; and
WHEREAS, in September 2010, the Federal Aviation Administration developed an Air Carrier
Incentive Guidebook: A Reference for Airport Sponsors in order to provide guidance to airports
interested in offering promotional incentives to attract air carrier services at federally obligated
airports; and
WHEREAS, a properly structured and administered Air Carrier Incentive Program may
enhance air carrier service at an airport and may create an opportunity to increase passenger traffic,
which ultimately provides additional revenues to support the daily operations and maintenance at
the airport; and
WHEREAS, an Air Carrier Incentive Program is one of many tools utilized to encourage
public-private partnerships that will leverage a Department of Transportation Small Community Air
Service Development Grant to attract a prospective airline to the Yakima community; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized and directed to implement the attached Airline Incentive
Program at the Yakima Air Terminal-McAllister Field in order to leverage the Air Terminal's ability to
attract additional air service to the Yakima community through a reduction in landing fees and
terminal building use charges.
ADOPTED BY THE CITY COUNCIL this 1st day of December, 2020.
ATTEST: Patricia Byers, Mayor
Sonya Claar Tee, City Clerk
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Yak;ma Air Terminal-McAllister Meld
24t36 W.Washington Awe,Suite B
Yakima,WA 98903
(509a 575-6419
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Yakima Air Terminal-McAllister Field
Air Service Incentive Program
Background:
In 2017, City Council adopted the Economic Development Strategic Plan,which included a plan to spur and
sustain the growth of Yakima's economy over the long-term by collectively working to grow quality jobs.
Air service development was identified by the City Council as one of the strategic initiatives needed to
competitively meet the travel needs of local businesses and residents. Quality air service is critical to growing
both the economy and local tourism while also providing benefits to the community.
Historically, Yakima Air Terminal-McAllister Field has not offered monetary incentives to airlines for new or
increased service based on the philosophy that such service should be self-sustained. However,with the well-
documented struggles of the airlines coupled with volatile fuel costs and the current economic climate, the
City of Yakima has decided that incentives are needed to strengthen the airport's competitive position for new
or expanded service. This program will be in effect beginning December 2, 2020 and may be amended to
address changing circumstances from time-to-time. Any eligible airlines expanding existing service or those
starting new, nonstop service may participate.
Overall Goals:
The goals of the incentive program are to:
• Increase passenger and/or cargo airline activity at the airport;
• Attract new/additional passenger and/or cargo air service to the Yakima market;
• Increase the number of non-stop destinations served from Yakima;
• Increase the number of passengers traveling through the Airport;
• Increase the amount of cargo processed at the Airport;
• Increase non-airline revenues (concessions,parking, car rentals, etc.) at the Airport;
• Help mitigate the financial impacts on passenger airlines when beginning passenger service at the
Airport;
• Compete with other airports seeking to attract new entrant passenger airlines.
Yakima Air Terminal-McAllister Field
Air Service Incentive Program
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Incentive Program:
The words and phrases defined below have the following meaning when used elsewhere in this incentive
program:
Airport: means the Yakima Air Terminal-McAllister Field,together with any additions, improvements, or
enlargements made from time to time.
Signatory airline lease and operating agreement or an airport lease agreement: means that agreement with the
City providing for the use of the Airport by an airline that is party to a Signatory airline lease and operating
agreement or an airport lease agreement, as it may be amended from time to time or a successor agreement.
City: means The City of Yakima, Washington.
Direct Flight: means a flight served on a one-stop, same aircraft basis.
Airport Director: means the Airport Director or the person performing the functions of that office, as
authorized by the City Manager, or that person authorized by the Airport Director to act for or on behalf of the
Airport Director with respect to any particular matter.
Fiscal Year: means the twelve-month period commencing January 1 and extending through December 31 of
the following calendar year, or such other fiscal year as the City may establish by ordinance.
Landing Fees: means the fees payable in accordance with established Airport rates and charges, or similar
fees in other agreements for the use of the Airport facilities and services, as may be applicable.
Seasonal Flight: means a flight that operates from the airport for less than 12 consecutive months annually.
Terminal Building Rents: means the charges payable in accordance with established Airport rates and
charges, or similar charges in other agreements for the use of the Airport facilities and services, as may be
applicable.
Compliance with Federal Obligations:
The terms and implementation of this incentive program shall be, at all times, subordinated to applicable state
and federal laws and regulations, and the provisions of any existing or future agreement between the City and
the United States Government or governmental authority, relating to the operations and maintenance of the
Airport. The incentive program may be terminated, in whole or in part, if it is determined to violate
applicable laws,regulations, or any assurance made by the City to the United States Government in
connection with the receipt of the federal grants-in-aid or the approval of Passenger Facility Charges. The
incentive program will also be reviewed to ensure the program is consistent with guidance published by the
Federal Aviation Administration in September 2010,titled Air Carrier Incentive Program Guidebook: A
Reference for Airport Sponsors in accordance with Federal statutes.
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Air Service Incentive Program
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Summary:
The purpose of the program will be to provide an incentive to an incumbent airline that provides new,nonstop
service to any destination that it currently does not service from the Yakima Air Terminal-McAllister Field as
of December 2, 2020, or attract a new entrant airline to service the Yakima Air Terminal-McAllister Field. In
order to be eligible for the incentive program, an airline must provide, at a minimum, at least two (2)round
trips per week with a minimum one-hundred four(104) arrivals/departures to the new destination during a
twelve consecutive month period. The total minimum annual requirement for arrivals/departures maybe
waived if the incumbent or new entrant airline falls under Incentive Program#3 "New Seasonal Air Service".
INCENTIVE PROGRAM#1—NEW ENTRANT AIRLINES
Program #1 Definitions:
Eligible Airline: an airline that has not provided passenger air service at the Airport in the previous twelve
(12)months and begins new scheduled passenger air service providing at least two round trips per week and
104 arrivals/departures annually at the Airport, committing to maintain such service for a period of no less
than twelve (12) consecutive months is eligible to participate, except:
• An airline that operates for the benefit of, or under the same or substantially similar name and/or
livery as another airline that is servicing the Airport on, or discontinued service at the Airport within
the twelve(12) consecutive months prior to the date on which the new scheduled passenger service
begins; or
• An Airline that consolidates with, or merges into, another airline that is serving the Airport during, or
discontinued service at the Airport within,the twelve(12) consecutive months prior to the date on
which the new scheduled passenger service begins.
To become an Eligible Airline, an airline must have entered into, or committed to enter into and be in
compliance with, all terms of the signatory airline lease and operating agreement or an airport lease
agreement.
Qualifying Flight: a regularly scheduled passenger nonstop roundtrip flight to/from the Airport(designated by
a particular flight number or numbers)that is first operated by an Eligible Airline during that airline's initial
thirty(30) days of operations at the Airport qualifies for this incentive program.
Program #1 Incentives:
Upon the Airport Director's determination that an airline is eligible to participate in the incentive program,
and subject to the provisions of this incentive program, the following fees will be waived:
• Landing Fees: the standard landing fees incurred by the at airline for all Qualifying Flights,beginning
on the date each Qualifying Flight is first operated,will be charged at fifty percent(50%), this
reduction continuing for a period of up to twelve(12) consecutive months thereafter for each such
Qualifying Flight; and
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Air Service Incentive Program
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• Terminal Building Rents: the standard terminal building rents associated with the space initially
leased or assigned to an Eligible Airlines will be charged at fifty percent(50%),this reduction
continuing for a period of up to the first twelve(12) consecutive months of Qualifying Flight
operations by that airline.
INCENTIVE PROGRAM#2—NEW DIRECT DESTINATIONS (PASSENGER)
Program #2 Definitions:
Eligible Airline: an airline that introduces Qualifying Flights, as defined in this section, and commits to
maintain such service for a period of twelve(12) consecutive months is eligible to participate, except:
• An airline that operates for the benefit of,or under the same or substantially similar name and/or livery
as another airline that is providing direct roundtrip flights between the Airport and such other airport
on, or discontinued such service within,the 12 months prior to the date on which the Qualifying Flight
begins.
• To become an Eligible Airline an airline must have entered into, and be in compliance with, all terms
of the signatory airline lease and operating agreement or an airport lease agreement.
• An airline participating in Program#1 that is also an Eligible Airline under the terms for a Qualifying
Flight in Program#2 may request to participate in Program#2 for any Qualifying Flight for which the
airline is not receiving an incentive under Program#1.
Qualifying Flight: a new regularly scheduled passenger non-stop roundtrip Direct Flight (designated by a
particular flight number or numbers) between the Airport and an airport that has not been served from the
Airport by the airline operating such new service during the previous twelve (12) months that results in
increased departures for the airline at the Airport qualifies for the purposes of Program#2.
Program #2 Incentives:
Upon the Airport Director's determination that an airline is eligible to participate in incentive Program#2,
and subject to the provisions of this incentive program,the following fees will be waived:
• Beginning on the date each Qualifying Flight is first operated,Landing Fees incurred by an eligible
airline's Qualifying Flights will be charged at fifty percent(50%),this reduction continuing for a
period of up to twelve (12) consecutive months thereafter for each such Qualifying Flight.
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Air Service Incentive Program
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PROGRAM#3—NEW SEASONAL AIR SERVICE(PASSENGER)
Program #3 Definitions:
Eligible Airline: an airline that introduces Qualifying Flights and commits to maintain such service until a time
agreed upon by the Airport Director, except;
• An airline that operates for the benefit of,or under the same or substantially similar name and/or livery
as another airline that is serving the Airport on, or discontinued service at the Airport within the twelve
(12)months prior to,the date on which the new scheduled passenger service begins; or
• An airline that consolidates with, or merges into, another airline that is serving the Airport on, or
discontinued service at the Airport within the twelve (12) months prior to, the date on which the new
Seasonal Air Service begins.To become an Eligible Airline,an airline must have entered into or commit
to enter into, and be in compliance with, all the terms of the signatory airline lease and operating
agreement or an airport lease agreement.
Qualifying Flight: A new regularly scheduled passenger non-stop round trip Seasonal Flight(designated by a
particular flight number or numbers) between the Airport and an airport that has not been served during the
previous twelve(12)months from the Airport by the airline operating such new service is a qualifying scheduled
service for purposes of Program#3.
Program III Incentives:
Upon the Airport Director's determination that an airline is eligible to participate in Program#3, and subject to
the provisions of this Incentive Program,the following fees shall be waived:
• Thirty percent(30%)of the Landing Fees associated with that airline's Qualifying Flights and incurred
during the first season of service of such Qualifying Flights.
• Thirty percent(30%) of the Terminal Building Rents or incremental Terminal Building Rents, if any,
associated with that Airline's Qualifying Flights and incurred during the first season of such Qualifying
Flights.
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Yakima Air Terminal-McAllister Field
Air Service Incentive Program
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Procedures:
Before commencing new service that may qualify for any Incentive Program, an airline desiring to participate
must petition in writing to the Airport Director. A petition should include sufficient information to demonstrate
eligibility to participate in the desired program and flight qualifications, including, not limited to: the type of
new service to be offered,the destination airport,the date on which the new service will begin, and the type of
aircraft to be used for the new service.
The Airport Director may request any additional information as may be necessary to consider an application.
An application must be approved by the Airport Director before an airline is eligible to participate,and its flight
qualify for participation, in the incentive program.
The Airport Director may reject an application if the Airport Director determines that:
• The airline is not eligible to participate in the incentive program;
• The proposed service does not qualify for an incentive; or
• The proposed services do not meet the incentive program's goals.
The Airport Director may terminate an airline's eligibility to participate in any one or more of the incentive
programs if the airline fails to meet or maintain any of the requirements for participation.
Reports:
An airline participating in the incentive program may be required to provide operational reports to show it is
meeting the requirements of the incentive program.
Retroactive Payment of Waived Fees:
If the eligibility of an airline that is participating in the incentive program is terminated by the Airport Director
for failure to meet or maintain the requirements for participation, such airline must pay to the City an amount
equal to the applicable Landing Fees and Terminal Building Rents, as the case may be, that were waived in
accordance with the incentive program.
Contact Information:
Robert K. Peterson
Airport Director
Phone: 509-575-6149
Fax: 509-575-6185
Email: rob.peterson@yakimawa.gov
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