APPLICATION UNDER SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM
DOCKET DOT

- OST -2014-0133

SUMMARY INFORMATION 1

All applicants must submit this Summary Information schedule, as the application coversheet , a completed standard form SF424 and the full application proposal on www.grants.gov

. For your preparation convenience, this Summary Information schedule is located at http://www.dot.gov/policy/aviation- policy/small -community- rural

- air

- service/SCA SDP

A. P ROVIDE THE LEGAL SPO NSOR AND ITS DUN AND BRADSTREET (D&B) DATA UNIVERSAL

NUMBERING SYSTEM (DUNS) NUMBER , INCLUDING +4, EMPLOYEE IDENTIFICAT ION NUMBER (EIN) OR TAX ID
. Legal Sponsor Name: Name of Signatory Party for Legal Sponsor:
DUNS Number:
EIN/Tax ID:

B. L IST THE N AME OF THE COMMUNITY OR CONSORTIUM OF COM MUNITIES APPLYING : 1.____________________________________________________ 2.____________________________________________________ 3.____________________________________________________ 4.____________________________________________________

C. P ROVIDE THE FULL AIRP ORT NAME AND 3-L ETTER IATA A IRPORT C ODE FOR THE

APPLICANT ( S ) AIRPORT ( S ) (O NLY PROVIDE CODES FOR THE AIRPORT ( S ) THAT ARE ACTUALLY

SEEKING SERVICE ).
1. 2

. 3

. 4

.

1 Note that the Summary Information does not count against the 20

- page limit of the SCASDP application.D OES THE AIRPORT SEEKING SERVICE HOLD AN AIRPORT OPERATING CERTIFICATE ISSUED BY

THE F EDERAL A VIATION A DMINISTRATION UNDER 14 CFR P ART 139? (I F “N O ”, P LEASE

EXPLAIN WHETHER THE AIRPORT INTENDS TO APPLY FOR A CERTIFICATE OR WHETHER AN

APPLICATION UNDER P ART 139 IS PENDING .)

Yes No (explain)

______________________________________________________________________________

______________________________________________________________________________ D. L IST THE 2- DIGIT CONGRESSIONAL DISTRICT CODE APPLIC ABLE TO THE SPONSORI NG

ORGANIZATION , AND IF A CONSORTIUM , TO EACH PARTICIPATING COMMUNITY
. 1. 2

. 3

. 4

.

E. A PPLICANT I NFORMATION : (C HECK A LL T HAT A PPLY )

Not a Consortium Interstate Consortium Intrastate Consortium Community currently receives subsidized Essential Air Service Community (or Consortium member) previously received a Small Community Air Service Development Program Grant
If previous recipient: Provide year of grant(s) :_______________________________; and, the text of the grant agreement section(s) setting forth the scope of the grant project :

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

F. P UBLIC /P RIVATE P ARTNERSHIPS : (L IST O RGANIZATION NAMES )
PUBLIC PRIVATE

1. 1.
2. 2.
3. 3.

4. 4.
5. 5.G. P ROJECT P ROPOSAL :
1. G RANT G OALS : ( CHECK ALL THAT APPLY )

Launch New Carrier Secure Additional Service Upgrade Aircraft
First Service New Route Service Restoration Regional Service Surface Transportation Professional Services 2

Other (explain below)

2. F INANCIAL T OOLS T O B E U SED : ( CHECK ALL THAT APPLY )

Marketing (including Advertising): promotion of the air service to the public
Start

- up Cost Offset : offsetting expenses to assist an air service provider in setting up a new station and starting new service (for example, ticket counter reconfiguration)

R evenue Guarantee : an agreement with an air service provider setting forth a minimum guaranteed profit margin, a portion of which is eligible for reimbursement by the community
Recruitment of Air Carrier: air service development activities to recruit new air service, including expenses for airport marketers to meet with air service providers to make the
case for new air service
Fee Waivers : waiver of airport fees, such as landing fees, to encourage new ai r service; counted as in-kind contributions only Ground Handling Fee : reimbursement of expenses for passenger, cabin, and ramp (below wing) services provided by third party ground handlers
Travel Bank: travel pledges, or deposited monetary funds, from pa rticipating parties for the purchas e of air travel on an air carrier , with defined procedures for the subsequent use of the pledges or the deposited funds; counted as in-kind contributions only

2 “Professional Services” involve a community contracting with a firm to produce a product such as a marketing plan, study, air carrier proposal, etc.Other (explain below)

______________________________________________________________________________

______________________________________________________________________________

H. E XISTING L ANDING A IDS AT L OCAL A IRPORT :
Full ILS Outer/Middle Marker Published Instrument Approach
Localizer Other (specify)

I. P ROJECT C OST : D O NOT ENTER TEXT IN SHADED AREA
L INE D ESCRIPTION S UB T OTAL T OTAL A MOUNT
1 Federal amount requested

2 State cash financial contribution Local cash financial contribution

3a Airport cash funds

3b Non

- airport cash funds

3 Total local cash funds ( 3a + 3b )

4 TOTAL CASH FUNDING ( 1+2+3 )

In

- K ind contribution

5 a Airport In

- Kind contribution **

5b Other In

- Kind contribution **

5 TOTAL IN

- KIND CONTRIBUTION ( 5a + 5b )

6 TOTAL PROJECT COST ( 4+ 5 )

J. IN- KIND CONTRIBUTIONS** For funds in lines 5a (Airport In

- Kind contribution) and 5b (Other In

- Kind contribution), please describe the source(s) of fund(s) and the value ($) of each.K. I S T HIS A PPLICATION S UBJECT T O R EVIEW B Y AN A FFECTED S T ATE U NDER E XECUTIVE
O RDER 12372 P ROCESS ?

a. This application was made available to the State under the Executive Order 12372 Process for review on (date) _____________.
b. Program is subject to E.O. 12372, but has not been selected by the S tate for review.

c. Program is not covered by E.O. 12372.

L. I S T HE L EAD A PPLICANT OR A NY C O -A PPLICANTS D ELINQUENT O N A NY F EDERAL D EBT ? (I F “Y ES ”, P ROVIDE E XPLANATION )

No Yes (explain)

______________________________________________________________________________

______________________________________________________________________________ APPLICATION CHECKLIST

I NCLUDED ? I TEM
For Immediate Action Determine Eligibility

New Grants.gov users must r egister with www.grants.gov

. Existing Grants.gov users must verify ex isting www.grants.gov account has not expired and the Authorized Organization R epresenta tive (AOR) is current

. For Submission by 5:00 PM EDT on July 31, 2014 Communities with active SCASDP grants: notify DOT/X50 of intent to terminate existing grant in order to be eligible for selection in FY2014 Complete Application for Federal Domestic Assistance (SF424) via www.grants.gov
S ummary Information schedule complete and used as cover sheet (see Appendix B )

A pplication of up to 20 one - sided pages (excluding any letters from the community or an air carrier showing support for the application ) , to include:

• A description of the community’ s air service needs or deficiencies

.

• A strategic plan for meeting those needs under the Small Community Program

.

• A detailed description of the funding necessary for implementation of the community's project.

• An explanation of how the proposed project differs from any previous projects for which the community received SCASDP funds (if applicable).

• Designation of a legal sponsor responsible for adminis tering the program

.

• A motion for confidential treatment (if applicable)

– see Appendix D below.

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 1 

### TABLE OF CONTENTS

Introduction/Summary: City of Yakima, Legal Sponsor Page 2
Overview of the Yakima Market Page 3
Yakima Air Terminal Catchment Area Page 3
Alaska Airlines at Yakima Page 4
Yakima Load Factor History Page 5
Market Leakage from YKM Page 5
Yakima Meets All Eligibility Requirements for Grant Page 6
Why is Air Service Important to Yakima? Page 6
Strategic Plan for Development of Yakima Air Servic e Page 8
Additional Alaska Markets PDX Page 8
Improve Existing Alaska/Horizon Schedule Page 9
Strengthen Alaska-Yakima Partnership Page 12
Yakima Air Service Development Efforts For the Last 4 Years Page 12
Summary of Yakima Strategy Page 13
Strategic Plan Budget Page 15
Strategic Plan Cash Budget Page 15
Sources of Funds Page 15
Uses of Cash Funds Page 16
Airport Status Page 17
Letters of Support Attachments

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 2 July 31, 2014
Ms. Brooke Chapman Associate Director Small Community Air Service Development Program U.S. Department of Transportation 8th Floor, Room W86-307 1200 New Jersey Avenue SE, Washington D.C. 20590

Reference: Docket DOT-OST-2014-0113
Dear Ms. Chapman,
The City of Yakima, as the owner of the Yakima Air Terminal – McAllister Field hereby submits an application for a Small Community Air Service Devel opment Program grant.
Currently the Yakima Air Terminal (YKM) has service on Alaska/Horizon to Seattle with three flights a day. Unfortunately, the average scheduled departure s to SEA has consistently declined in the past 10 years, from 7 departures a day in 2004 to 6 through 2008, 4 through 2010, and currently 3 per day. The impact was predictable, that the Yakima air travele rs are primarily driving the 154 miles to Seattle, over an often closed mountain pass. In 2001, 46% of the Yak ima air travelers drove to alternate airports. A st udy in 2004 estimated that number increased to 58%, and the most recent surveys, taken last year, estimate d the leakage at 72%, with over 2/3rds of those trave lers driving to Seattle.

Over the recent past, however, since 2007, Yakima, and its market catchment area, has funded development of commercial aviation through particip ation of private and public entities. This includes the consortium that raised $650,000 in incentives to br ing Sky West/Delta to Yakima, and operate nonstop service to their hub in Salt Lake. Unfortunately, e ven though the service produced enough demand to sustain its operation, the service was dropped in t he fall of 2008 due to the combination of a deep recession and Delta’s merger activities with Northw est.
The number one objective of the application of the Grant is to start a new route from Yakima to Portla nd by year 2. PDX is by far the preferred Alaska hub a fter SEA, and strengthen the other catchment area.

Yakima is at a critical crossroads with its air ser vice development. We are qualified to participate i n the SCASD grant program, have a history of strong priva te/public partnerships to support air service, and have proven in the following pages, that we are an excellent fit for the objectives of the program. We sincerely hope you agree and give Yakima, WA favora ble consideration.
Regards,
Original signed by SEAN HAWKINS

Sean Hawkins Legal Sponsor Small Community Air Service Development Program City of Yakima Economic Development Manager 129 N. Second Street Yakima, WA 98901

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 3 

### Overview of McAllister Field and the Yakima (YKM) M **arket Area, and why YKM qualifies for a Small Community Air Service Develop**  **ment Grant in 2013.**

Yakima Air Field (YKM), also known as McAllister Fi eld, is located in central Washington, serving the City and County of Yakima, as well as the surrounding areas The Yakima Air Terminal catchment area maintains a population base of 260,000 which encompasses 30 zip codes. The following identifies the Yakima A ir Terminal catchment area.



## Y AKIMA 

## A IR 

## T ERMINAL 

## C ATCHMENT 

## A REA

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 4 The current scheduled service by Horizon has been r educed to an average of three departures per day using 76 seat Q400’s to Seattle (SEA). Since 2007, Horizon has reduced departures from six per day, due to the replacement of the smaller 37 seat Q200’s with the larger aircraft.

While the reduction in departures slightly increase s the total seats per day offered by Horizon to Seattle, load factors, consistently in t he low 70%, are still well below the average of 86.5%.

Prior to 2005, Horizon scheduled 7 departures a day , reducing that number to 6 the following year. Therefore, the departures have been declining in Yakima for almost a decade with the trend continuing in 2010-2013.

Consistent with the decline in scheduled frequencie s, the average Horizon load factor has also been erratic, declining from 2008 through 2010, and then increasing with the reduction in seats starting in the 1 st quarter, 2011.

In addition to the Horizon/Alaska service, Sky West /Delta operated Salt Lake - Yakima from June 2007 through September 2008 using an air service incentive program 100% funded by the private Yakima interests. More detail on that important service is later in this document.

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 5 The result of reduced schedule options to the Yakim a market has increased leakage, or diversion from Yakima Air Terminal to other airport s, primarily Seattle, based on a 2013 Passenger survey by RRC Associates of CO and commis sioned by The City of Yakima. 

## YKM Captures Just 28% of Yakima County Resident Fli **ght Trips Purchased Through Travel Agencies (Online & O**  **ffline)**

Originating Airport: Yakima County Residents

Page 8

Source: May 2012 – April 2013 ARC Flight Itinerarie s for Yakima County residents purchased thru OTAs a nd travel agencies; RRC Associates. YKM 28%

SEA 51% PSC 15% PDX

6%

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 6 A 2005 study estimated that 58% of Yakima and Kitti tas Counties’ passenger traffic leaked in 2004, and in 2001 a similar study estimated 46% leakage. That number is now up to 72%. Therefore Yakima is losing its originating market share, as well as scheduled departures, and the number of com mercial airlines. Despite private and public efforts to support the airport, Yakima n ow needs to strengthen that initiative with a Small Community Air Service Development Prog ram grant.

Yakima meets all eligibility requirements for a SCA SD Program Grant  The City of Yakima, as the legal sponsor of the SC ASD Program, has met all the registration requirements to respond to Docket DOT- OST-2014-0113, the 2014 Grant Application.  Air Fares from YKM are higher than similar communi ties.  Since 1997, YKM is not larger than a small hub air port. Yakima Air Terminal/McAllister Field is listed as a ‘Non-hub P rimary Airport in the NPIAS  YKM has never received any direct benefits from a SCASD Program grant  YKM is not an EAS subsidized community  The Yakima market area has established a consortiu m of public and private interests supporting air service development.  Yakima’s Air Development Marketing program initial ly covers a 2 year period, expanded to three years for evaluation.  A Yakima Consortium will contribute all most $300, 000 matching funds, one a one to one basis in cash over the 2 year period, pl us in-kind contribution as well.  The SCASD Program grant will increase access to a larger segment of the national transportation system by the Yakima Catchm ent area.  The Yakima market area covers multiple communities

.
Why is Air Service Important to the Yakima Market?

The nearest airport with direct access to the Natio nal Transportation System is Seattle (SEA). Surface transportation can be very d ifficult during much of the year since it requires travel over Snoqualmie Pass, which is periodically closed, not only in winter months for avalanche con trol, but other periods of the year due to accidents, and construction work. Over the past 6 years, Snoqualmie Pass has closed an average of 150 hours per year. While this does not appear to be excessive, it should be emphasized tha t a 1 to 2 hour closure can disrupt scheduled travel plans.

In addition to SEA, the other alternatives for air transportation are Tri Cities (PSC) or Walla Walla (ALW).

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 7  Driving distance to SeaTac is 152 miles, with an e stimated travel time of 2:34 hours.  Driving distance to Pasco is 83 miles with estimat ed travel time in good weather of 1:21 hours.  Driving distance to Walla Walla is 133 miles with an estimated drive time of 2:18 hours.  PSC is served by United, Delta, and Alaska with sc heduled nonstop service to Seattle, Salt Lake City, Denver, Minneapolis, and P ortland and enjoys lower average fares than Yakima passengers.  The population of the City of Pasco is only 60,000 , while Yakima is over 90,000.

The diverse Yakima economy is increasingly dependen t on frequent, convenient air service. While Yakima still relies on agriculture to drive i ts economy, over 250 manufacturing firms are also loca ted in the Yakima Catchment Area, producing a variety of products inc luding aircraft parts, wood products, plastic products, recreational vehicles, and communications technology. Tourism is the fastest growing segment of the Yakima economy. More than 70 wineries are located in the Yakima Val ley and regularly draw visitors to sample and buy internationally renowned varietals. Outdoor recreation, including water and snow skiing, fishing, boating, hiking, horseback riding, and white water rafting, also makes Yakima a favorite d estination.

Education is important to the Yakima catchment area and heavily dependent on reliable air service. In grades K through 12, the National Principal of the Year, as well as National Teacher of the Year, work and teac h in the Yakima School District. Yakima is also the home of a number of institutes o f higher education, including:

o Yakima Valley Community College, enrollment 6,100 students

o Central Washington University, enrollment 7,242 st udents

o Perry Technical Institute, enrollment 400 students

o Heritage College, enrollment 1,100 students

o Sakie International College of Cosmetology, enroll ment unknown

o City University, enrollment, 100 students

According to a recent study by the Yakima Conventi on and Visitors Bureau, the average visitor, no matter how they travelled to Ya kima, had basic expenditures of $300-$400 per person. Therefore, a 50% improvement to the existing air service should produce an estimated 30,000 visitors per yea r, or about $12 million directly into the local economy , not including the trickledown effect to the economy.

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 8 STRATEGIC PLAN FOR DEVELOPMENET OF YAKIMA AIR SERVI CE

Priorities and Objectives:

1) The ultimate objective of the program is adding a Yakima-Portland route, 1-2 flights a day, with the target start date to be win ter of 2015. 2) Improve performance on existing Alaska/Horizon S eattle Schedule to assure long term stability. 3) Strengthen Alaska-Yakima partnership through joi nt marketing and promotional programs

1. The ultimate objective of the program is adding a Yakima-Portland route, 1-2 flights a day, with the target start date to be win ter of 2015.



## YKM Passenger Survey **Top Choices for New YKM Flights in the Future (Othe r than SEA)** 

Page 20 Source: 2013 YKM Air Passenger Survey; RRC Associa tes. 29%

12%

7%

10%

8%

8%

3%

3% 10%

8%

9%

3%

6%

6%

5%

3% 4%

5%

3%

5%

4%

4%

6%

3% 43%

25%

20%

19%

18%

18%

14%

5%

5%

4% Portland

- PDX
Spokane - GEG
Salt Lake City - SLC
Los Angeles

- LAX
Las Vegas - LAS

Denver - DEN

San Francisco

- SFO

Boise - BOI

Phoenix - PHX
Chicago - ORD, MDW 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Top Choice Second Choice Third Choice

The above chart, showing the results of a study las t year, commission by Yakima, shows the top destination, by far, is PDX. In fact, if we reference the chart on page 5 it illustrates 6% of the YKM market drive to PDX today to begin their trip.

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 9 In summary:

1. The PDX service can be added instead of addition al SEA frequencies a. At least one nonstop round trip from YKM b. Tag PDX to YKM-SEA creating one-stop service and adding direct frequencies in the YKM-PDX market. 2. The PDX service can be added after successfully increasing the SEA frequencies to 4 or 5 per day. 3. A 2013 YKM passenger survey commissioned by The City of Yakima showed Portland was the overwhelming preference for the ne xt new destination.

2. Improve performance on existing Alaska/Horizon S chedule.
This top priority of the Yakima Strategic Plan is c ritical to the basic structure of the Yakima air service development since it connects th e YKM passengers with much of the National Transportation System. However, for many o f the key markets, the routing is very circuitous, particularly for the destinations east of Yakima. Over 42% of Alaska’s entire route system flows through their SEA hub.

Currently Alaska/Horizon schedules 3 flights per da y in Yakima that are showing an average load factor (72%), well below the AS averag e of 86.5%, and therefore could be at risk of being further reduced or eliminated

. Convenient, frequent service to the Seattle hub is critical to access of the Yakima market to a wide range of destinations in the Natio nal Transportation System. See Alaska’s SEA route map below. The current pattern o f YKM-SEA service has 5 to 7 hour gaps between flights and forces many air trave lers to seek alternatives.

There are mitigating factors that help support the continuation of the existing service. These are:

 The YKM market has been consistently served by Hor izon/Alaska for more than 25 years, establishing a close, long term partnersh ip between the two entities.

 There is substantial potential for increased loads at the Yakima Air Terminal based on the high percentage of leakage overall (72 %, with the majority to SEA (51%).

 The Yakima market area consists of 250,000-270,000 residents, strong enough demographics to support a substantial increase in s ervice.

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 10  The YKM flights feed the primary SEA connecting ba nks, therefore providing a high percentage of beyond segment passengers and re venue.

The RED LINE shown above represents the arrivals of the YKM fli ghts into SEA.

While the arrivals are very well scheduled for a 3 x per day schedule, they are 5 to 7 hours apart. The early morning, at 0640, is critica l to meeting the largest connecting bank for AS at SEA. Also, it should be emphasized t he arrivals are a function of the timing of the SEA-YKM departures, which are timed t o meet the YKM inbound connections shown in the chart on the next page.

The Alaska Airlines Planning and Scheduling departm ent has been very responsive to Yakima’s needs by maximizing connection opportuniti es in Seattle. In fact, the important early morning departure from Yakima, which is funde d by an overnight aircraft leaving SEA at 2310, costs Alaska a double crew as there is not a sufficient rest period. That totals hundreds of thousands of dollars a year, dem onstrating Alaska’s willingness to strengthen the Yakima feed traffic.

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 11 The RED LINE shown above represents the departures of the SEA f lights into YKM.

As with the YKM Arrival pattern, the departures fro m SEA to YKM are 6 to 7 hours apart, creating long layovers for many of the retur ning travelers, and exacerbating the 72% leakage from YKM described earlier.

Given three frequencies a day, the timing of both t he outbound and inbound Yakima flights maximizes the market coverage, particularly the connecting opportunities to the National air transportation system. Unfortunately, this pattern continues to leave gaps in the schedule.

 The Yakima community has consistently supported air service :

♦ Hired a leading transportation consultant in 2005 to study the Yakima air service market

♦ Contracted with Airplanners LLC, a consulting firm specializing in air service development for small communities, in 2013

♦ Developed a FLY YKM Marketing Program in 2013

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 12

♦ Formed an Airport Advisory Committee of prominent private and public leaders.

♦ Supported the Delta, Salt Lake service in 2007-200 8

 Contributed $150,000 in cash from private funds

 Developed a travel account of 92 businesses in the Yakima area that contributed $500,000 for travel costs.

 The Delta-Northwest Merger was announced in April, 2008, the same year the YKM-SLC service was dropped by Delta in September, 2008. Therefore, the service appeared mo re a victim of the merger than economics as the load fac tors were close to 80%, feeding a major hub with long haul tr affic.

Given all the positives, the overriding considerati on for Alaska/Horizon, or any other airline considering increased service, is financial

. The fact that a YKM-SEA segment load factor in the low 70 th percentile, versus a system average of over 86% presents an immediate need to implement the Yakima Strategic Plan with The Alaska Airlines Group

. 3. Strengthen Alaska-Yakima partnership through joi nt marketing and programs

Alaska’s Marketing Department has committed coopera tion in coordinating a marketing program within Yakima County and an inbound visitor campaign to the region. Alaska has agreed to perform the role of an ad agency and production firm at no cost to the City of Yakima. They will also offer special fares during certain periods, and passenger data and insight on how the marketing program is af fecting load factors. The City of Yakima will have the final review of ad messages. Alaska is thrilled that the Yakima community is willing to pursue a partnership throug h a marketing campaign to insure better load factors and in turn improved service. The requested SCASD Program grant funding will allow the development of promoti onal fares, advertising campaigns, traffic studies, and other initiatives t o increase YKM demand.

Yakima Air Service Development Efforts over the Las t 4 Years

Since 2011, there have been a number of actions tha t impact the development of air service at Yakima Air Terminal/McAllister Field. Th ese include:

 2011-2013: Yakima representatives continue their o ngoing discussions with Alaska Air Group, at least twice per year.

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 13  2012: City of Yakima hired an Economic Development Manager to work with airport staff, Alaska Airlines, consultants, and go vernment officials to promote air service development.  2012: City of Yakima hires a new City Manager with a track record of promoting air service development.  2012: The City and County of Yakima issued an RFP for Air Service Development & Consulting Services.  2013: The County of Yakima transferred ownership o f Yakima Air Terminal/McAllister Field to the City of Yakima to allow for more focused air service development programs  2013: The City retained Airplanners LLC, a highly respected Air Service Development consulting firm specializing in promoti ng commercial air service from small communities.  2013: City officials or their representatives are in constant contact with Alaska Airlines, with communications every week.  2013: Formed Airport Advisory Committee of Yakima business and government leaders to meet on a quarterly basis with The City Manager, Manager of Economic Development, and Airport Director regardin g air service development.  2013: City of Yakima hired RRC & Associates to con duct air service focused surveys with:

o Air Travelers

o Local Businesses

o The Lodging Association  In total, over 400 individuals were surveyed resul ting in the following findings:

o 72% of the air travelers from Yakima fly out of ot her airports

o 70% of the 72% drive to Seattle to start their tri p

o Many Yakima travelers do not want to wait in Seatt le for long layovers

o Recommended improvements to the airport facilities

o Recommended improvements to the Alaska schedule

o Were dissatisfied with the high fares.

o Only 18% of air travelers drove to Pasco to start their trip.

o Recommended Portland as their next destination cho ice.



### Summary of Yakima Strategic Plan

Year 1 – October, 2014 – September, 2015  Meet with Alaska/Horizon to detail action items fo r air service improvements

o Schedule adjustments if needed

 Propose addition of Portland service

 Nonstop to PDX

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 14

 Tag to existing SEA-YKM flights

o Promotion of the Yakima air service

o Revenue incentives to Alaska for YKM service

o Yakima promotions on respective web sites

o Alaska to develop advertising content with YKM app roval.  Radio and print advertising in Seattle and Yakima catchment area.  Start proprietary travel card program.

Year 2 – October, 2015 – September, 2016  Continue to strengthen the Alaska Airlines partner ship and implement SEA/PDX schedule improvements.  Finalize Alaska requirements to begin the PDX serv ice.

o Revenue Guarantees

o Options for schedules

o Share promotion

o Start-up plan  New routes would focus on access the synergy of th e YKM route network.  Develop an advertising campaign for the new servic e  Expand the proprietary travel card program from Ye ar 1.

Yakima Strategic Plan Budget

Sources of Funds
Examples of non-airport sources of cash are the fol lowing FLY YKM campaign.

 City of Yakima  Greater Yakima Chamber of Commerce  Yakima Lodging Association  Yakima Convention & Visitors Bureau  Members of the Airport Advisory Committee  Office of Economic Development  Individual Businesses  Private Educational Institutions  Business Interests from the Yakima Catchment Area

Non-airport sources will contribute a total of $290 ,000 in cash as well as another $500,000 from in-kind sources. The source of cash c ontributions is the FLY YKM Campaign, similar to the organization developed for the Delta service to Salt Lake City in 2007-2008. In that campaign, 92 organizations in the Yakima Catchment area contributed a total of $150,000 in cash as well as deposited additional funds of $500,000 in a prepaid travel. It should be noted th e deposits were not “promises” to buy

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 15 tickets, but cash committed for travel on Delta. Ya kima will develop a similar program for the Two Year Strategic Plan using a proprietary gift card concept. Even though the $500,000 will be funded, for purposes of this Appli cation, it is being defined as In-Kind source of funds.



### Strategic Plan Cash Budget – Year 1 (10/14-9/15), Y ear 2(10/15-9/16)

Source of Funds

**Year 1 Year 2 Total**

US DOT SCASD Program $125,000 $165,000 $290,000
Airport Cash $0 $0 $0

InKind Waive Landing Fees $0 $25,000 $25,000

InKind Waive Rents/Gate Fees $0 $25,000 $25,000

Non-Airport Cash Fly YKM $125,000 $165,000 $290,000

InKind Marketing & Promotions $100,000 $100,000 $200,000

InKind Travel Card Program $125,000 $125,000 $250,000

Total Cash **$250,000 $330,000 $580,000**

**%**

**Cash US DOT 50% 50% 50%** 

**%**

**Cash Non-Airport 50% 50% 50%** 

Total In-Kind Non-Cash $225,000 $275,000 $500,000

**Total Funds $475,000**  **$605,000 $1,080,000** 

%

Total **US DOT** 26% 27% 27%

%

Total **Non-Airport** 74% 73% 73%

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 16 Uses of Cash Funds

Year 1 Year 2 Total

**In Yakima Catchment Area**  Print $10,000 $10,000 $20,000

Broadcast Media $10,000 $15,000 $25,000
Outdoor $5,000 $5,000 $10,000
Web Banners $10,000 $15,000 $25,000
Social Media $5,000 $5,000 $10,000
Public Relations $5,000 $10,000 $15,000
Market Research $20,000 $10,000 $30,000
Travel Promotions $20,000 $25,000 $45,000
Administration $17,000 $17,000 $34,000

**Outside YKM Area**
Broadcast Media $40,000 $50,000 $90,000
Print $15,000 $30,000 $45,000
PR - Studies $10,000 $20,000 $30,000

**Airline Programs**
Advert & Admin. $40,000 $40,000 $80,000
Airline Web Site $10,000 $10,000 $20,000
Inflight Magazine $15,000 $15,000 $30,000
Incentives $18,000 $53,000 $71,000
**TOTAL $250,000 $330,000**  $580,000

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 17 

### Airport Status

YKM Current Airport and Planned Improvements

Currently the airport has five active projects whic h include:

 Airport Master Plan Update

o Airport specific document presenting the capital de velopment needs of the airport over 20 years

o Projected Costs: $500,000

o Projected Completion: September 2014

 Terminal Apron Rehabilitation

o Preservation of existing concrete panels

o Install backer rods, crack sealant, and spall repai rs

o Install new pavement markings for air carrier opera tions

o Project Costs: $583,717

o Projected Completion: July 2014

 Taxiway Alpha, A1-A5; Taxiway B, C Partial (between Runway 9/27 and Taxiway Alpha) Rehabilitation; Taxiway Lights & Signs; Segm ented Circle

o Expand Taxiway width to meet current FAA standards

o Mill and overlay old Taxiway and replace with new a sphalt

o Replacement of Taxiway edge lights with LED lights

o Replacement of Taxiway guidance signs with LED sign s (airfield wide)

o Update airfield pavement markings to meet current F AA standards

o Projected Costs: $11,171,774

o Projected Completion: June 2015

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 18  Snow Removal Equipment Purchase (Carrier & Broom)

o Equipment will remove snow and ice from Runways and Taxiways

o Increase braking action for aircraft operations by exposing asphalt

o Project Costs: $485,636

o Projected Delivery: July 2015

 Land Acquisition of approximately 3.0 acres for add itional hangar space

o Projected Costs $1,000,000

o Projected Completion: June 2015

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 19 Total Capital Improvement Projects: $13,741,127
All projects are funded through the Airport Improve ment Program (90%) with a Passenger Facility Charge match (10%).
The airport currently has two airline ticket counte rs (Alaska and one vacant) with facilities supporting both operations (baggage belts, baggage sorting areas, operations area, etc). The terminal has one baggage claim area and also one sc reening lane for passengers to traverse from the public area to the sterile area.

Inside the sterile area (concourse) there are five passenger gates to support approximately 4 aircraft parking slots. All passenger loading is g round up or air stairs is used for larger aircraft. The airport has short term, long term, cell phone p arking lots as well as a Rent-A-Car lot for Budget, Hertz and Avis. Employee parking lot is lo cated just west of the terminal building to provide support staff with ample parking. Followin g is a diagram (floor level) of the terminal that explains the layout.

### Application of The City of Yakima Under the 2014 SC ASD Grant Program

Docket DOT-OST-2014-0113 Page 20 From an operational standpoint the terminal can ope rate normally with the addition of another airline and increased passenger numbers.