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MEETING DATE &TIME: Monday, February 11, 2019 @.2:00.pm
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Ryan Mclrvin
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Randy Corman
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AGENDA
1. :.BEFA Lease-Addendum
2. Rainier Flight Service Lease Agreement
3. Adoption-of Title VI plan
4. WSDOT Acquisition I-405/NE 44 St. Interchange
5. Airport Preferred Airside Alternative
CITIZENS IN ATTENDANCE
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PUBLIC WORKS DEPARTMENT
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M E M O R A N D U M
DATE: December 6, 2018
TO: Ed Prince, Council President
Members of the Renton City Council
CC: Denis Law, Mayor
Robert Harrison, C,i Administrative Officer
FROM:Greggimmerm lic Works Administrator,ext. 73110Ggg
STAFF CONTACT: Harry Barrett,Jr.,Airport Manager, ext. 7477
SUBJECT: Impacts to Grants Received by the Renton Municipal Airport
The purpose of this memo is to provide background of the impacts of delaying the
decision on the selection of a preferred airside alternative to the Airport Master Plan.
The City was awarded a federal grant of$753,935 on September 9, 2014 for the purpose
of developing a new Airport Master Plan. The Airport has a contract with Mead and
Hunt for$837,705 to provide consultation services. Under the Federal Aviation
Administration (FAA) grant terms,the Airport Master Plan grant was scheduled to be
closed out September 9, 2018.
In 2015 the FAA notified the Airport that due to the complexity and large scale of this
particular airport master plan,they would not be awarding additional grants to the City
until the conclusion of the Master Planning process. The rationale behind this decision
is that nearly any capital project requiring federal grant funding will have direct impacts
on other Airport assets that are actively being planned in the Master Plan. The same
year the Airport and the FAA had engaged in discussions about the status of the grant.
In late 2015 there was an 18-month delay due to the project having to be re-scoped and
the need for additional analysis by the FAA to validate current operational information.
Given that the Master Plan process was delayed the FAA was concerned at that time
about the possibility of an inactive grant,which is not viewed favorably and has the
potential to threaten future grant funding under federal grant obligations. Under the
Grants Oversight and New Efficiency(GONE)Act that was to go into effect in 2016
Congress had authorized federal agencies to discontinue funding on old grants. Despite
the Airport's grant being accepted prior to that legislation the FAA has been increasing
the pressure on the Seattle Airports District Office and on the Airport to close the
Master Plan grant in a timely manner.
Ed Prince,Council President
Members of the Renton City Council
Page 2 of 3
December 6,2018
With the project being scoped incorrectly and the planning delay Mead and Hunt
anticipates completion of the project will put them over their contract limit of$837,705.
This anticipated contract overrun is eligible for 90%federal funding under the current
grant. To address both the issue of the cost overrun and the downward pressure from
the FAA, in late 2017 Airport staff, Mead and Hunt and the FAA concluded that approval
of the aeronautical forecast had to be completed by the spring of 2018. This timing
would allow for the remainder of the Master Plan process to be completed and the
grant to be closed out by December 31, 2018. With the stipulation of meeting the
spring 2018 approval deadline and the December close out the FAA agreed to extend
the grant period for three months to December 31, 2018.
The inability to close this grant by the FAA's deadline has already had and will continue
to have multiple adverse effects on the Airport's ability to fund and complete
development projects. The delay has resulted in a reallocation of available grant
funding of$150,000 in entitlement funds for the 2019 Master Plan environmental
review. This was determined during a conference call on December 4, 2018 between
the Airport, FAA and the Washington State Department of Transportation. The
remaining$4.42 million in discretionary funds designated for the Airport is now
dependent on the availability of funding in future years. Additionally the delay in closing
out the Master Plan project grant has the potential of jeopardizing grant funding for the
Taxiway Alpha Rehabilitation project, budgeted in 2021 and 2022,with an estimated
cost of$15.45 million. Taxiway Alpha is vital to the majority of Airport businesses,
including The Boeing Company. The asphalt surface has been steadily deteriorating over
the past few years, and with the increased production of the Boeing 737 MAX program
it is deteriorating more rapidly.
Airport 5-Year Projects and Requested Funding
Entitlement Discretionary
Year Project'Name Funds Funds Total
2018
Wildlife Hazard Transferred to
Management Plan 150,000 0 Orcas Island Airport
2019
Environmental Review for
Master Plan Projects 570,000 $4,000,000 4,570,000
2020 Carry Over If Applicable If Applicable If Applicable
Runway Safety Area
2021 Improvements (Phase 1)
Design 300,000 0 300,000
2022 Runway Safety Area
Improvements (Phase 2) 150,000 $15,000,000 15,150,000
H:\Division.s\TRANSPOR.TAT\Admin\Kelsey Marshall\Memorandum&Contracts\Impacts From Grants.docx
Ed Prince,Council President
Members of the Renton City Council
Page 3 of 3
December 6,2018
Once the Master Plan is approved work will begin on the Airport Layout Plan update.
The delay in the Master Plan approval and the Airport Layout Plan update affects
additional projects in the planning phase or awaiting construction. The Shoreline
Mitigation project is now at 100%design and has been on hold for over a year, pending
a decision on the airside alternative of the Master Plan. The outcome of the Master
Plan directly affects this project design because the airside alternatives include work in
Lake Washington on the north end of the runway. The Airport is also unable to make
any needed modifications to address displacement of aircraft storage due to new design
standards, until a preferred airside alternative is selected. Due to the Airport's
reclassification to a category D-III there are approximately 40 aircraft that will be
displaced. Identifying future aircraft storage is based on the selection of the preferred
airside alternative.
Finally approval of new development and long-term lease applications in affected areas
of the Airport cannot occur until the FAA has approved a new Airport Layout Plan.
Currently the Airport is in receipt of four lease applications from interested aviation
businesses that have been pending action since late 2016. The delay has the potential
to economically strain businesses through opportunity costs, increasing interest rates
and construction costs, and loss of capacity.
cc: Jim Seitz,Transportation Systems Division Director
Harry Barrett,Jr.,Airport Manager
Jason Seth,City Clerk
Jason Anderson,Assistant Airport Manager
Julia Medzegian,Council Liaison
Casey Boatman,Airport Business Coordinator
H:\Division.s\TRANSPOR.TAT\Admin\Kelsey Marshall\Memorandum&Contracts\Impacts From Grants.docx