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07/20/2021 06.E. Resolution authorizing acceptance of a grant from the Federal Aviation Administration (FAA) under the American Rescue Plan Act to provide economic assistance in response to COVID-19 operational impacts 1 i`c*co• rr 11 i ����,i3O enc u nrry 1 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEM ENT Item No. 6.E. For Meeting of: July 20, 2021 ITEM TITLE: Resolution authorizing acceptance of a grant from the Federal Aviation Administration (FAA) under the American Rescue Plan Act to provide economic assistance in response to COVI D-19 operational impacts SUBMITTED BY: Robert K. Peterson,Airport Director, 509-575-6149 SUMMARY EXPLANATION: On Thursday, March 11, 2021, the President of the United States signed the American Rescue Plan Act (ARPA) in order to provide economic assistance in response to COVI D-19 operational impacts. Within this act, it provides approximately $8 billion to airports within the National Plan of Integrated Airports System experiencing severe economic disruption caused by the virus. The Federal Aviation Administration (FAA) has indicated the Yakima Air Terminal-McAllister Field is eligible to receive funding for any purpose for which the airport revenues might be lawfully used to help offset the losses due to the virus. All funds received must be expended in accordance with the FAA's Policy and Procedures Concerning the Use of Airport Revenues. Funds received will be utilized to support the daily operations and maintenance functions at the airport. These include, but are not limited to, costs related to operations and maintenance, construction, personnel, cleaning, sanitization, janitorial services, combating the threat of pathogens at the airport, and debt service payments. Additionally, the ARPA allows the airport to provide some form of rent relief to applicable concessions in the main terminal building. Depending on the qualifications, this form of rent relief may include the airport's vehicle parking contractor, Avis, Budget, and Hertz car rentals; Fastlane Espresso; DC Vending and Distribution; Republic Parking, and BBOLD Advertising. Total FAA grant award is $1,401,487. ITEM BUDGETED: Yes STRATEGIC PRIORITY: Economic Development APPROVED FOR SUBMITTAL BY THE CITY MANAGER 2 RECOMMENDATION: Adopt Resolution ATTACHMENTS: Description Upload Date Type ❑ Resolution 6/23/2021 Resolution D Grant Application-Airport Operating Funds 6/28/2021 Backup Material D Grant Application-Concessions 6/28/2021 Backup Material ❑ Council Memo-ARPA Grant 7/6/2021 Backup Material 3 RESOLUTION NO. R-2021- A RESOLUTION authorizing acceptance of a grant from the Federal Aviation Administration (FAA) under the American Rescue Plan Act to provide economic assistance in response to COVID-19 operational impacts. WHEREAS, the City owns and operates the Yakima Air Terminal-McAllister Field in accordance with applicable Federal, State, and Local regulations; and WHEREAS, the 2019-20 coronavirus pandemic is an ongoing pandemic of coronavirus disease 2019 (COVID-19) that has reached more than 190 countries, causing economic distress on all forms of businesses including the transportation industry; and WHEREAS, on Thursday, March 11, 2021, the President of the United States signed the American Rescue Plan Act (ARPA) (H.R. 1319, Public Law 117-2) to provide continued funding from the federal government throughout the FY 2021-2022 and to minimize the economic impacts and assist Cities throughout the nation with their response to the ongoing COVID-19 virus; and WHEREAS, Title IV, Department of Transportation of the American Rescue Plan Act (ARPA) (H.R. 1319, Public Law 117) provides approximately $8 Billion Dollars to support U.S. airports experiencing severe economic disruption caused by the COVID-19 public health emergency;the funds will be distributed to airports to prevent, prepare for, and respond to the COVID-19 public health emergency; and WHEREAS, the grant funds are available to sponsors as defined in Section 47102 of title 49, United States Code; airport sponsors meeting statutory and policy requirements under this section and identified in the FAA's current National Plan of Integrated Airport Systems are eligible; and WHEREAS, grant funds will be provided directly from the U.S. Treasury's General Fund to prevent, prepare for, and respond to the impacts of the COVID-19 public health emergency;the FAA's Office of Airports will administer grant funds to airport sponsors; and WHEREAS, the Yakima Air Terminal-McAllister Field is presently eligible to receive a 2021 Airport Improvement Program (AIP) grant from the federal government and may not require the use of the airport sponsor's local 10% match funded under the Passenger Facility Charge Program (PFC); and WHEREAS, the American Rescue Plan Act (ARPA) (H.R. 1319, Public Law 117), has allocated at least $6.5 Billion Dollars in additional funding to Commercial Service Airports that may receive the additional funding for any purpose for which airport revenues may lawfully be used; the additional grant funding will be distributed to all Commercial Service Airports based upon a modified Airport Improvement Program apportionment while any remaining funds will be distributed based on the airport's passenger enplanements; and WHEREAS,the American Rescue Plan Act (ARPA) (H.R. 1319, Public Law 117)funds may be utilized for cost related to operations and maintenance, construction, debt service payments, personnel, cleaning, sanitization,janitorial services, combating the threat of pathogens at the airport; and WHEREAS, the American Rescue Plan Act (ARPA) (H.R. 1319, Public Law 117) also provides an additional $800 million to primary airports based on enplanements "to provide relief from rents and minimum annual guarantee to on-airport car rental, on-airport parking, and in-terminal airport concessions"; and 4 WHEREAS, in accordance with the Act airport sponsors receiving the additional relief funding would be required to provide relief to airport concessioners from the date of enactment until the sponsor has provided an amount equal to the grant amount specifically allocated for concessions "to the extent practicable and to the extent permissible under state laws, local laws, and applicable trust indentures"; and WHEREAS, an airport concession must certify to the airport sponsor that it has not received a second draw or assistance for a covered loan under section 7(a)(37) of the Small Business Act (15 U.S.C. 636(a)(37)) that has been applied toward rent or Minimum Annual Guarantee is eligible for the relief; and WHEREAS, the City Council deems it to be in the best interest of the City and its residents to accept an American Rescue Plan Act (ARPA) (H.R. 1319, Public Law 117) grant from the Federal Aviation Administration for funds needed to accomplish previously identified capital improvements on the airport as well as for application to any purpose for which airport revenues maybe lawfully be utilized; Now, Therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: 1. The City Manager is hereby authorized and directed to accept additional American Rescue Plan Act (ARPA) (H.R. 1319, Public Law 117) grant funds from the Federal Aviation Administration to be applied to any purpose for which airport revenues may be lawfully used, in accordance with the FAA's Policy and Procedures Concerning the Use of Airport Revenues ("Revenue Use Policy'), 64 Federal Register 7696 (64 FR 7696), as amended by 78 Federal Register 55330 (78 FR 55330). Additionally, the American Rescue Plan Act (ARPA) (H.R. 1319, Public Law 117), further provides that the grant funds may not be used for any purpose not related to the airport. ADOPTED BY THE CITY COUNCIL this 20th day of July, 2021. ATTEST: Patricia Byers, Mayor Sonya Claar Tee, City Clerk OMB Numb&: 4040-0004 Expiration Date: 12/31/2022 Application for Federal Assistance SF-424 *1. Type of Submission: *2. Type of Application * If Revision, select appropriate letter(s): ❑ Preapplication ® New ElApplication ❑ Continuation *Other(Specify) ❑ Changed/Corrected Application ❑ Revision *3. Date Received: 4. Applicant Identifier: NA YKM (Yakima Air Terminal/McAllister Field)Yakima, WA *5b. Federal Entity Identifier: *5b. Federal Award Identifier: 53-0089 State Use Only: 6. Date Received by State: 7. State Application Identifier: 8. APPLICANT INFORMATION: *a. Legal Name: City of Yakima *b. Employer/Taxpayer Identification Number(FIN/TIN): *c. Organizational DUNS: 91-6001293 07-821-2651 d. Address: *Street 1: 2406 West Washington Ave, Suite B, Street 2: *City: YAKIMA County/Parish: *State: WA Province: *Country: USA: United States *Zip/Postal Code 98903 e. Organizational Unit: Department Name: Division Name: f. Name and contact information of person to be contacted on matters involving this application: Prefix: Mr. *First Name: Robert Middle Name: *Last Name: Peterson Suffix: Title: Airport Director Organizational Affiliation: *Telephone Number: 509-575-6149 Fax Number: *Email: rob.peterson@yakimawa.gov OMB Number: 4040-0004 Expiration Daa 12/31/2022 Application for Federal Assistance SF-424 *9. Type of Applicant 1: Select Applicant Type: X. Airport Sponsor Type of Applicant 2: Select Applicant Type: Type of Applicant 3: Select Applicant Type: *Other(Specify) *10. Name of Federal Agency: Federal Aviation Administration 11. Catalog of Federal Domestic Assistance Number: 20.106 CFDA Title: Airport Improvement Program *12. Funding Opportunity Number: NA *Title: NA 13. Competition Identification Number: NA Title: NA 14.Areas Affected by Project(Cities, Counties, States, etc.): *15. Descriptive Title of Applicant's Project: $1,342,035 for costs related to operations, personnel, cleaning, sanitization,janitorial services, combating the spread of pathogens at the airport, and debt service payments. Attach supporting documents as specified in agency instructions. OMB Numb'r: 4040-0004 Expiration Date: 12/31/2022 Application for Federal Assistance SF-424 16. Congressional Districts Of: *a. Applicant 4 *b. Program/Project: 4 Attach an additional list of Program/Project Congressional Districts if needed. 17. Proposed Project: *a. Start Date: NA *b. End Date: NA 18. Estimated Funding ($): *a. Federal $1,342,035 *b. Applicant $0 *c. State $0 *d. Local "re. Other $0 *f. Program Income $0 *g. TOTAL $1,342,035 *19. Is Application Subject to Review By State Under Executive Order 12372 Process? ❑ a. This application was made available to the State under the Executive Order 12372 Process for review on ❑ b. Program is subject to E.O. 12372 but has not been selected by the State for review. ® c. Program is not covered by E. O. 12372 *20. Is the Applicant Delinquent On Any Federal Debt? (If"Yes", provide explanation in attachment.) ❑ Yes ® No If"Yes", provide explanation and attach 21. *By signing this application, I certify(1)to the statements contained in the list of certifications**and (2)that the statements herein are true, complete and accurate to the best of my knowledge. I also provide the required assurances**and agree to comply with any resulting terms if I accept an award. I am aware that any false, fictitious, or fraudulent statements or claims may subject me to criminal, civil, or administrative penalties. (U. S. Code,Title 218, Section 1001) • ** I AGREE **The list of certifications and assurances, or an internet site where you may obtain this list, is contained in the announcement or agency specific instructions. Authorized Representative: Prefix: Mr. *First Name: Robert Middle Name: *Last Name: Harrison Suffix: *Title: City Manager *Telephone Number: 509-575-6040 Fax Number: * Email: bob.harrison@yakimawa.gov *Signature of Authorized Representative: *Date Signed: OMB Numb$r: 4040-0004 Expiration Date: 12/31/2022 Application for Federal Assistance SF-424 *1. Type of Submission: *2. Type of Application * If Revision, select appropriate letter(s): ❑ Preapplication ® New ElApplication ❑ Continuation *Other(Specify) ❑ Changed/Corrected Application ❑ Revision *3. Date Received: 4. Applicant Identifier: NA YKM (Yakima Air Terminal/McAllister Field)Yakima, WA *5b. Federal Entity Identifier: *5b. Federal Award Identifier: 53-0089 State Use Only: 6. Date Received by State: 7. State Application Identifier: 8. APPLICANT INFORMATION: *a. Legal Name: City of Yakima *b. Employer/Taxpayer Identification Number(FIN/TIN): *c. Organizational DUNS: 91-6001293 07-821-2651 d. Address: *Street 1: 2406 West Washington Ave, Suite B, Street 2: *City: YAKIMA County/Parish: *State: WA Province: *Country: USA: United States *Zip/Postal Code 98903 e. Organizational Unit: Department Name: Division Name: f. Name and contact information of person to be contacted on matters involving this application: Prefix: Mr. *First Name: Robert Middle Name: *Last Name: Peterson Suffix: Title: Airport Director Organizational Affiliation: *Telephone Number: 509-575-6149 Fax Number: *Email: rob.peterson@yakimawa.gov OMB Number: 4040-0004 Expiration Daa 12/31/2022 Application for Federal Assistance SF-424 *9. Type of Applicant 1: Select Applicant Type: X. Airport Sponsor Type of Applicant 2: Select Applicant Type: Type of Applicant 3: Select Applicant Type: *Other(Specify) *10. Name of Federal Agency: Federal Aviation Administration 11. Catalog of Federal Domestic Assistance Number: 20.106 CFDA Title: Airport Improvement Program *12. Funding Opportunity Number: NA *Title: NA 13. Competition Identification Number: NA Title: NA 14.Areas Affected by Project(Cities, Counties, States, etc.): *15. Descriptive Title of Applicant's Project: $47,562 to provide relief from rent and minimum annual guarantees to eligible small airport concessions located at primary airports. $11,890 to provide relief from rent and minimum annual guarantees to eligible large airport concessions located at primary airports. Attach supporting documents as specified in agency instructions. OMB NumbaA 4040-0004 Expiration Date: 12/31/2022 Application for Federal Assistance SF-424 16. Congressional Districts Of: *a. Applicant 4 *b. Program/Project: 4 Attach an additional list of Program/Project Congressional Districts if needed. 17. Proposed Project: *a. Start Date: NA *b. End Date: NA 18. Estimated Funding ($): *a. Federal $59,452 *b. Applicant $0 *c. State $0 *d. Local "re. Other $0 *f. Program Income $0 *g. TOTAL $59,452 *19. Is Application Subject to Review By State Under Executive Order 12372 Process? ❑ a. This application was made available to the State under the Executive Order 12372 Process for review on ❑ b. Program is subject to E.O. 12372 but has not been selected by the State for review. ® c. Program is not covered by E. O. 12372 *20. Is the Applicant Delinquent On Any Federal Debt? (If"Yes", provide explanation in attachment.) ❑ Yes ® No If"Yes", provide explanation and attach 21. *By signing this application, I certify(1)to the statements contained in the list of certifications**and (2)that the statements herein are true, complete and accurate to the best of my knowledge. I also provide the required assurances**and agree to comply with any resulting terms if I accept an award. I am aware that any false, fictitious, or fraudulent statements or claims may subject me to criminal, civil, or administrative penalties. (U. S. Code,Title 218, Section 1001) • ** I AGREE **The list of certifications and assurances, or an internet site where you may obtain this list, is contained in the announcement or agency specific instructions. Authorized Representative: Prefix: Mr. *First Name: Robert Middle Name: *Last Name: Harrison Suffix: *Title: City Manager *Telephone Number: 509-575-6040 Fax Number: * Email: bob.harrison@yakimawa.gov *Signature of Authorized Representative: *Date Signed: 11 F wyxi-0,Thr Yakima Air Terminal-McAllister Field 2406 W.Washington Ave,Suite B Yakima,WA 98903 (509)575-6419 www.flyYKM.com To: Bob Harrison, City Manager From: Robert Peterson, Airport Director Cc: Honorable Mayor and Members of the Yakima City Council Date: Monday, July 6, 2021 Re: American Rescue Plan Act On Thursday, March 11, 2021, the President of the United States signed into law the American Rescue Plan Act. The Act provides approximately $8 billion dollars to support U.S. airports experiencing severe economic disruption caused by the COVID-19 public health emergency. These funds are available to municipalities, which own airports who meet statutory and policy requirements, under section 47102 of title 49 United States Code; and identified in the Federal Aviation Administration's (FAA) current National Plan of Integrated Airports System (NPIAS). The Act sets aside approximately $6.5 billion for commercial service airports to assist in the costs related to operations, personnel, debt service, cleaning, sanitization,janitorial services combating the threat of pathogens at the airport. Additionally, the Yakima Air Terminal-McAllister Field meets these specific qualifications for funding where the airport is slated to receive 100% grant funding for all 2021 Airport Improvement Program grant funds,thereby eliminating the local 10% match. The distribution of funds will be in the form of a grant and administered by the FAA's Airport District Office. These funds may be used for any purpose for which airport revenues may be lawfully used. Grant recipients should follow the FAA's Policy and Procedures Concerning the Use of Airport Revenues ("Revenue Use Policy"), 64 Federal Register 7696 (64 FR 7696), as amended by 78 Federal Register 55330 (78 FR 55330). The Revenue Use Policy document defines permitted and prohibited uses of airport revenue. In addition to the detailed guidance in the Revenue Use Policy,the Act makes clear that the funds may not be used for any purpose not related to the airport. Priority#1: Airport Fiscal Sustainability and Restoration of Air Service Continued fiscal sustainability should be the first priority as we emerge from the COVID-19 pandemic as various transportation sectors such as rental cars, airlines, vehicle parking, general and corporate aviation have witnessed unprecedent decrease in business activities. Since March 2020, the airport has witnessed a slow recovery of passengers, which transfers to additional revenues from various transportation sectors. Although many airports throughout the nation have witnessed a rebound in passenger traffic, airports will continue to witness lost revenue compared to 2019's budgets. The grant will assist with offset operating revenues through invoices submitted to the FAA to be reimbursed for normal operations and maintenance expenses. As the airline stry recovers from record reductions in airline routes, it will be imperative the airport focuses 12 on restoring and expanding air service. Continued close coordination with the airport's air service consultant, Alaska Airlines, and future airline destinations should be a top priority. Priority#2: 2022 Airport Improvement Projects and Replacement of Aging Infrastructure Upon stabilization of the airport's 2021-22 budget using the grant, Council should consider addressing upcoming 2022 capital improvements as well as the airport's aging infrastructure, which include the following: • Environmental Category X approval from the Federal Aviation Administration for both the main terminal building and the Taxilane Charlie extension; • Installation of infrastructure (water, sewer, power) to further develop 13 acres located along 21'Ave and Airport Lane in order to prime aeronautical development such as aircraft hangars; • Replacement of the airport's passenger boarding stairs; and • Replacement of the airport's 1996 high-speed runway plows; and • Expansion of vehicle parking lot adjacent to the main terminal building; and • Rehabilitation of existing vehicle parking lots; and • Rehabilitation of airfield maintenance facility and airport administration office; and • Replacement of aging HVAC systems, which have outlived their useful life. Final Consideration Related to The ARPA Funds Upon securing the airport's 2021-2022 operating and capital budgets,the ARPA grant can also be used for other capital projects or strategic priorities. These projects include, but are not limited to, asphalt maintenance or repairs,terminal building roof repairs, replacement of terminal apron ramp snowplow, expansion of airfield maintenance facility to house required maintenance and snow equipment, or installation of infrastructure for future development. Although these projects may qualify for ARPA grant funds, it's required to contact the FAA's Airport District Office to ensure compliance with federal obligations, meets safety and security standards, National Environmental Protection Act, prevailing wage, and buy American requirements. For additional clarification or information, please feel free to contact me at your convenience. 2