CRITICAL OREGON AIRPORT RELIEF (COAR)

OREGON DEPARTMENT OF AVIATIONBOARD PRESENTATION

FEBRUARY 4 , 2021

(503)378-4880 3040 25TH STREET, SALEM, OR 97302 WWW.OREGON.GOV/AVIATION ORAVIATION

2020/2021 COAR Grant Cycle

The 2020/2021 grant cycle will be the 5th grant cycle since the Aviation System Action Program began and will be the largest award to date. The $2.5 million available for this year’s program is due in large part to the CARES Act of last spring (which provided the local matching share on AIP 2020 grants). Without it, the reduction in revenues due to the pandemic would have significantly reduced the amount of available funds for this worthwhile program. The Aviation Review Committee and staff are pleased to request board approval of $2.5 Million in COAR Grants for the 2020/2021 cycle.

Aviation Review Committee Chair

Application numbers at a glance

• The department received the following numbers of applications and funding amounts:

Aviation Review Committee Tie Breaking ProcessIn prioritizing applications submitted for COAR funds, the ARC may consider the following factors:

(a) Applicant that is able to bear the most cost.(b) Projects related to safety or infrastructure.(c) Quantity of projects applied for at an airport, within the same grant cycle.(d) Regional significance.

Tie Breaking in Priority IDiscussion on applications submitted in accordance with OAR-738-124-0035(8)(a)(A), “Priority1”:The Aviation Review Committee first reviewed applications submitted in accordance with OAR-738-124-0035(8)(a)(A), “Priority 1”. The Aviation Review Committee discussed the tie breakingfor the following projects:

COAR-2021-4S1-00046, Gold Beach Municipal Airport (4S1), Apron ReconstructionCOAR-2021-6S2-00013, Florence Municipal Airport (6S2), AWOS Replacement

The ARC recommended breaking the tie as follows: COAR-2021-6S2-00013 then COAR-2021-4S1-00046. Application COAR-2021-6S2-00013 provides more local match than COAR-2021-4S1-00046.

Tie Breaking in Priority I

There were two applications that scored negative points.COAR-2021-DLS-00068, Columbia Gorge Regional Airport, South Apron Rehabilitation: Phase I –Design

COAR-2021-S03-00026, Ashland Municipal Airport, Parallel Taxiway Rehabilitation - Phase 1

Tie Breaking in Priority IThe Aviation Review Committee found that during the review of the statutory considerationsthe above named projects were graded in error in two areas. The first error, found in bothapplications, was that the airport was providing 0-25% of the project funding through sourcesother than Connect Oregon or ODA funds. The accurate selection for both of these applicationsis 76-100% of funding outside Connect Oregon or ODA.

The second grading error occurred in application COAR-2021-SO3-0026. The project readinesswas marked as over 24 months, when according to the application it should have been 0-6months.

Had the errors not occurred, both applications would have received marks high enough fortheir ACT score to be positive.As a result, the Aviation Review Committee is recommending approval for those two projects.

Aviation Review Committee Recommendation:

The Aviation Review Committee recommended approval of all applications submitted in accordance with OAR-738-124-0035(8)(a)(A), “Priority 1” as listed in appendix A.

Tie Breaking in Priority II

Discussion on applications submitted in accordance with OAR-738-124-0035(8)(a)(B), “Priority 2”:The Aviation Review Committee first reviewed applications submitted in accordance with OAR-738-124-0035(8)(a)(B), “Priority 2”. There were no ties.

Aviation Review Committee Recommendation:

The Aviation Review Committee recommended approval of all applications submitted in accordance with OAR-738-124-0035(8)(a)(B), “Priority 2” as listed in appendix A.

Tie Breaking in Priority II

Discussion on applications submitted in accordance with OAR-738-124-0035(8)(a)(C), “Priority 3”:

The Aviation Review Committee first reviewed applications submitted in accordance with OAR-738-124-0035(8)(a)(C), “Priority 3”. The Aviation Review Committee discussed the tie breaking for the following projects:

Tie Breaking in Priority III

Tie #1COAR-2021-9S3-00014, Lakeside Airport, Lakeside Airport Fencing ProjectCOAR-2021-BNO-00042, Burns Municipal Airport, Public Water Supply Well & Water Distribution SystemThe ARC recommended breaking the tie and approving as follows: COAR-2021-9S3-00014 then COAR-2021-BNO-00042. Application COAR-2021-9S3-00014 was a Safety Project and the applicant only submitted one application.

Tie Breaking in Priority III

Tie #2COAR-2021-LGD-00029, La Grande/Union County Airport, Fuel RecoveryCOAR-2021-6K5-00051, Sisters Eagle Airport, Infrastructure for Growth - Jet A Fuel TankCOAR-2021-BNO-00043, Burns Municipal Airport, Jet Fuel Storage TankThe ARC recommended breaking the tie and approving in the following order: COAR-2021-LGD- 00029, COAR-2021-6K5-00051 and COAR-2021-BNO-00043. The tie breaking was primarily based on percentage of the project funded as well as the overall project costs. The applicant for COAR-2021-LGD-00029 only had one application submitted, which was another factor in the tie breaking process.

Tie Breaking in Priority III

Tie #3COAR-2021-AST-00030, Port of Astoria Regional Airport, Fuel Farm Generator and Transfer SwitchCOAR-2021-8S4-00022, Enterprise Municipal Airport- 8S4, Airport Safety Improvements Project

The ARC recommended breaking the tie and approving as follows: COAR-2021-AST-00030 then COAR-2021-8S4-00022. Application COAR-2021-AST-00030 provided more match as a portion of percentage than COAR-2021-8S4-00022.

Aviation Review Committee Recommendation:

The Aviation Review Committee recommended approving all applications submitted in accordance with OAR-738-124-0035(8)(a)(C), “Priority 3” as listed in appendix A.

Other action items from the Aviation Review Committee:In addition, it was determined by the Aviation Review Committee that the grading process specifically related to the quantitative questions needs to be reviewed. The Aviation Review Committee requested some additional details be provided in the COAR Instructions to Reviewers documentation that would further illustrate what the Oregon Administrative Rules provide.The Aviation Review Committee also asked staff to look into the overall grading process and develop recommendations for a new process.

Other action items from the Aviation Review Committee cont:Staff provided options to the Aviation Review Committee as follows:- Option 1: Keep current process- Option 2: Each ARC member reviews all applications and an aggregate score is calculated as the final ACT Grade. In addition, all comments would or could be considered in the Aviation Review Committee meeting- Option 3: Cohorts of the ARC group would meet and grade the materials, providing more than one set of eyes to create substantive comments and thorough grading. One grade sheet would be completed with the cohort’s collective comments and final evaluation scores.

Other action items from the Aviation Review Committee cont:Staff polled the Aviation Review Committee and the ARC overwhelmingly supported Option 3.Staff will be developing the process for creating the ARC Cohorts for review of applications submitted under the ASAP program.Additionally, staff will be revising the Instructions to Reviewers to support the ARC Cohort process and include some additional explanatory statements on review criteria as requested.

Staff Discussion and Recommendations:

Discussion on applications submitted in accordance with OAR-738-124-0035(8)(a)(A)-(C):Staff would like to specifically call out two projects for Staff report and detailed recommendation in addition to the ARC recommendations as further described below.There are two applications submitted for more than the typical $150,000.COAR-2021-MFR-00011 Rogue Valley International-Medford 2021 AIP Projects, submitted in accordance with OAR-738-124-0035(8)(a)(A), “Priority 1” for $176,079.50.COAR-2021-MFR-00012 Rogue Valley International-Medford 2021 Pavement Maintenance, in accordance with OAR-738-124-0035(8)(a)(B), “Priority 2” for $500,000.

Discussion on applications submitted in accordance with OAR-738-124-0035(8)(a)(A)-(C):OAR 738-124-0040(1)(d) gives sole discretion to the State Aviation Board in awarding amountsgreater than the $150,000 in OAR 738-124-0040(1)(a).

The rule states:“(d) Notwithstanding the maximum grant amounts listed in this section, the Board may award alarger grant if it makes a finding that a larger grant awarded to a particular project would servethe purposes of the program. If an Applicant applies for a grant amount above the maximumamount listed in this section, the application must include a detailed statement of how the grantamount in excess of the maximum listed in this section would serve the purposes of therespective program as described in OAR 738-124-0010.”

Discussion on applications submitted in accordance with OAR-738-124-0035(8)(a)(A)-(C):In the discussion of the projects, the State Aviation Board may award all, some, or none of the applicants request for monies exceeding OAR 738-124-0040(1)(a), or $150,000. If the State Aviation Board chooses to fund an amount exceeding the $150,000, staff requests that specific information from the application be cited as to “how the grant amount in excess of the maximum listed in this section would serve the purposes of the respective program as described in OAR 738-124-0010.”• Appendix C is provided for additional background related to

application COAR-2021-MFR-00012.

Staff Recommendation for COAR-2021-MFR-00011 and COAR-2021-MFR-00012:Staff recommends funding COAR-2021-MFR-00011, 2021 AIP Projects, submitted in accordance with OAR-738-124-0035(8)(a)(A), “Priority 1” for $176,079.50 as it is consistent with the COAR program funded projects and otherwise beneficial to the Statewide System plan as a Capital Improvement Project.

Staff Recommendation for COAR-2021-MFR-00011 and COAR-2021-MFR-00012:Staff does not recommend funding COAR-2021-MFR-00012, 2021 Pavement Maintenance Projects, in accordance with OAR-738-124-0035(8)(a)(B), “Priority 2” for $500,000 or at any level in accordance with the material in Appendix C. Furthermore, this project is not in accordance with past or present COAR projects approved for funding and is not a Capital Improvement Project. This request is for a maintenance project that appears to be able to be done in multiple time frames and does not appear critical or otherwise beneficial to the Statewide System plan as a capital improvement project. The general intent of the COAR program has not been to fund maintenance projects. Additionally, pavement maintenance projects can find funding through ODA’s Pavement Maintenance Program. The applicant also failed to identify why this project should be funded outside of the normal funding levels (of up to $150,000). This is a requirement of any special funding request. Not specifying reasoning for such a large funding request, especially of a non-capital standard maintenance project does not provide the ARC, ODA Staff or the Board the necessary details for a thorough review for such a large investment.

Discussion on applications submitted in accordance with OAR-738-124-0035(8)(a)(A)-(C):Staff is also requesting that in prioritizing approval for those applications submitted in accordance with OAR-738-124-0035(8)(a)(C), “Priority 3” the State Aviation Board consider approval of all non-NPIAS projects first, then those projects that are on NPIAS airports as follows and with exceptions:

Non-NPIAS Priority III ProjectsCOAR-2021-2S2-00036 Beaver Marsh Beaver Marsh restorationCOAR-2021-7S3-00063 Twin Oaks Airpark Runway RepavingCOAR-2021-6K5-00052 Sisters Eagle Airport Infrastructure for Growth -Building AdditionCOAR-2021-7S3-00059 Twin Oaks Airpark Transient Parking RampCOAR-2021-7S3-00071 Twin Oaks Airpark Backup Emergency GeneratorCOAR-2021-1S8-00066 Arlington Municipal Airport Runway 6-24 Paving and Parking Apron - Phase 1COAR-2021-9S3-00014 Lakeside Lakeside Airport Fencing ProjectCOAR-2021-6K5-00051 Sisters Eagle Airport Infrastructure for Growth - Jet A Fuel TankCOAR-2021-8S4-00022 Enterprise Municipal Airport- 8S4 Airport Safety Improvements ProjectCOAR-2021-6K5-00061 Sisters Eagle Airport Infrastructure for Growth - Asphalt Sealcoat/RepaintCOAR-2021-6K5-00055 Sisters Eagle Airport Infrastructure for Growth - Electrical/SewerCOAR-2021-8S4-00050 Enterprise Municipal Airport- 8S4 Tie-Down Area Improvements Project

Please note, the applications for Sisters Eagle Airport are bolded. Staff is not recommending these projects for approval at this time.Sisters Eagle Airport was awarded a grant in the 2018-2019 COAR Grant Cycle. Appendix C, is provided as background for discussion.

NPIAS Priority III ProjectsCOAR-2021-3S4-00072 Illinois Valley Airport Illinois Valley Airport Fire Suppression Water Pond CompletionCOAR-2021-77S-00024 Hobby Field (77S) Taxilane Design and ConstructionCOAR-2021-77S-00025 Hobby Field (77S) Utilities to Support Taxilane DevelopmentCOAR-2021-BNO-00042 Burns Municipal Airport Public Water Supply Well & Water Distribution SystemCOAR-2021-LGD-00029 La Grande/Union County Fuel RecoveryCOAR-2021-BNO-00043 Burns Municipal Airport Jet Fuel Storage TankCOAR-2021-AST-00030 Port of Astoria Regional Airport Fuel Farm Generator and Transfer SwitchCOAR-2021-AST-00008 Port of Astoria Regional Airport AST Wastewater System ReplacementCOAR-2021-4S2-00028 Ken Jernstedt Airfield Ken Jernstedt Airfield Fuel Tank Replacement

Staff Recommendation

Staff recommends approving all projects at Non-NPIAS airports first followed by the projects at NPIAS airports, with the exception of these applications:COAR-2021-6K5-00051, Sisters Eagle Airport, Infrastructure for Growth - Jet A Fuel TankCOAR-2021-6K5-00052, Sisters Eagle Airport, Infrastructure for Growth -Building AdditionCOAR-2021-6K5-00055, Sisters Eagle Airport, Infrastructure for Growth -Electrical/SewerCOAR-2021-6K5-00061, Sisters Eagle Airport, Infrastructure for Growth –Asphalt Sealcoat/Repaint

Prepare for plan “B”.

The 2019-2020 COAR Grants experienced a change in the way we normally do business. The CARES ACT provided 100 percent funding for all but one of the Priority 1 projects as well as a project from the 2018-2019 COAR Grant Cycle.Should the Federal Government again fully fund all Priority 1 projects, staff recommends that the monies be allocated consistent with their overall initial approval recommendation as follows:- Any remaining Priority 1 projects not covered by stimulus- All projects funded by the State Aviation Board for Priority 2- All projects funded by the State Aviation Board, Non-NPIAS airport Priority 3 projects first, then all NPIAS airport Priority 3 projects.

Staff Final Recommendations:

Staff recommends the State Aviation Board accept the project approval recommendations from the Aviation Review Committee and the Oregon Department of Aviation in Priorities 1, 2, and 3.

QUESTIONS?

(503)378-4880 3040 25TH STREET, SALEM, OR 97302 WWW.OREGON.GOV/AVIATION ORAVIATION