Oregon Department of Aviation 3040 25th Street SE Salem, OR 97302-1125 Office: 503-378-4880 Fax: 503-373-1688 January 28, 2021

From: ODA Planning To: State Aviation Board

Subj: 2020/2021 COAR Grant Projects

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.

Summary: - The Aviation Review Committee recommends awarding all application in Priority 1 ($1,766,346). - The Aviation Review Committee recommends awarding all application in Priority 2. Staff is not recommending funding of Rogue Valley International –Medford’s $500,000 and recommends funding the remaining Priority 2 projects ($572,000). - The Aviation Review Committee recommends approving all application in Priority 3. Staff is not recommending approval of projects submitted by the Sisters Eagle Airport. Staff recommends awarding the remaining $161,653 in the following order – Non-NPIAS airports (8 with the exception of Sisters Eagle Airport) followed by the NPIAS airports (8). If funds become available (due to additional federal funding of the AIP grants local matching shard) awarding additional grants as described above.

The 2020/2021 COAR Grant Cycle has completed the Aviation Review Committee (ARC) phase pursuant to ORS 319.020(3)(a) and (b).

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

Number of Applications Total Requested ODA Funding Total Priority 1 21 $ 1,766,346.70 Total Priority 2 6 $ 1,072,000.00 Total Priority 3 21 $ 2,177,788.50 Total 48 $ 5,016,135.20

Oregon Department of Aviation’s mission is to provide infrastructure, financial resources, and expertise to ensure a safe and efficient air transport system

Staff has provided the following appendices for your review.

Application and Review Materials: Appendix A contains the recommended projects list for Priority I, II and III for the 2020/2021 COAR Grant Cycle. Appendix B contains all of the application material. In the material you will find: The applications, the internal review sheet and associated scoring and the Area Commissions on Transportation (ACT) grading sheets. Board members can also find all of the application material online at www.odae-grants.com. Appendix C provides background on the project for Medford’s FAA AIP Match and resiliency grant. Appendix D provides a background on the grant eligibility for the Sisters Eagle Air projects

ARC Meeting, Discussion and Recommendation:

The Aviation Review Committee met via ZOOM on January 13, 2021 pursuant to OAR 738-124- 0060.

Staff provided program updates and information and then proceeded to discuss the applications.

Discussion and Recommendation:

Discussion on applications submitted in accordance with OAR-738-124-0035(8)(a)(A), “Priority 1”:

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 breaking for the following projects:

COAR-2021-4S1-00046, Gold Beach Municipal Airport (4S1), Apron Reconstruction COAR-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.

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

The Aviation Review Committee found that during the review of the statutory considerations the above named projects were graded in error in two areas. The first error, found in both applications, was that the airport was providing 0-25% of the project funding through sources other than Connect Oregon or ODA funds. The accurate selection for both of these applications is 76-100% of funding outside Connect Oregon or ODA.

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

Had the errors not occurred, both applications would have received marks high enough for their 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.

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.

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 #1 COAR-2021-9S3-00014, Lakeside Airport, Lakeside Airport Fencing Project COAR-2021-BNO-00042, , Public Water Supply Well & Water Distribution System

The 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 #2 COAR-2021-LGD-00029, La Grande/Union County Airport, Fuel Recovery COAR-2021-6K5-00051, Sisters Eagle Airport, Infrastructure for Growth - Jet A Fuel Tank COAR-2021-BNO-00043, Burns Municipal Airport, Jet Fuel Storage Tank

The 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 #3 COAR-2021-AST-00030, Port of , Fuel Farm Generator and Transfer Switch COAR-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.

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.

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.

OAR 738-124-0040(1)(d) gives sole discretion to the State Aviation Board in awarding amounts greater 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 a larger grant if it makes a finding that a larger grant awarded to a particular project would serve the purposes of the program. If an Applicant applies for a grant amount above the maximum amount listed in this section, the application must include a detailed statement of 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.”

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 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.

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 Airport Priority 3 Projects Application # Airport Name Project Name COAR-2021-2S2-00036 Beaver Marsh Beaver Marsh restoration COAR-2021-7S3-00063 Twin Oaks Airpark Runway Repaving COAR-2021-6K5-00052 Sisters Eagle Airport Infrastructure for Growth -Building Addition COAR-2021-7S3-00059 Twin Oaks Airpark Transient Parking Ramp COAR-2021-7S3-00071 Twin Oaks Airpark Backup Emergency Generator COAR-2021-1S8-00066 Arlington Municipal Airport Runway 6-24 Paving and Parking Apron - Phase 1 COAR-2021-9S3-00014 Lakeside Lakeside Airport Fencing Project COAR-2021-6K5-00051 Sisters Eagle Airport Infrastructure for Growth - Jet A Fuel Tank COAR-2021-8S4-00022 Enterprise Municipal Airport Safety Improvements Project Airport COAR-2021-6K5-00061 Sisters Eagle Airport Infrastructure for Growth - Asphalt Sealcoat/Repaint COAR-2021-6K5-00055 Sisters Eagle Airport Infrastructure for Growth - Electrical/Sewer COAR-2021-8S4-00050 Enterprise Municipal Tie-Down Area Improvements Project Airport NPIAS Airport Priority 3 Projects Application # Airport Name Project Name Fire Suppression COAR-2021-3S4-00072 Illinois Valley Airport Water Pond Completion COAR-2021-77S-00024 (77S) Taxilane Design and Construction COAR-2021-77S-00025 Hobby Field (77S) Utilities to Support Taxilane Development Public Water Supply Well & Water COAR-2021-BNO-00042 Burns Municipal Airport Distribution System COAR-2021-LGD-00029 La Grande/Union County Fuel Recovery COAR-2021-BNO-00043 Burns Municipal Airport Jet Fuel Storage Tank Port of Astoria Regional COAR-2021-AST-00030 Airport Fuel Farm Generator and Transfer Switch Port of Astoria Regional COAR-2021-AST-00008 Airport AST Wastewater System Replacement Fuel Tank COAR-2021-4S2-00028 Ken Jernstedt Airfield Replacement

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.

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 Tank COAR-2021-6K5-00052, Sisters Eagle Airport, Infrastructure for Growth -Building Addition COAR-2021-6K5-00055, Sisters Eagle Airport, Infrastructure for Growth - Electrical/Sewer COAR-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.

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.

Approve applications submitted in accordance with OAR OAR-738-124-0035(8)(a)(A), “Priority 1”: as follows: Approve all applications as recommended and ranked by the Aviation Review Committee for Priority 1.

Approve applications submitted in accordance with OAR-738-124-0035(8)(a)(B), “Priority 2”: as follows: Approve all applications as recommended and ranked by the Aviation Review Committee for Priority 2, with the exception of application COAR-2021-MFR-00012, Rogue Valley International-Medford, 2021 Pavement Maintenance. The State Aviation Board finds / does not find that the applicant demonstrated enough evidence in the application to warrant funding / not warrant funding at (state the level of funding) (state justification for any funding level over $150,000.)

Approve applications submitted in accordance with OAR OAR-738-124-0035(8)(a)(C), “Priority 3”: as follows: Approve all applications as recommended by the Aviation Review Committee in Priority 3 as follows: All projects at Non-NPIAS airports according to their final ranking from the Aviation Review Committee, with the exception of those at the Sisters Eagle Airport. (Please include a statement as to why in the discussion) and then all projects at NPIAS airports according to their final ranking from the Aviation Review Committee.

Direct staff to allocate additional COAR grant funding to unfunded and approved COAR 2020- 2021 projects if funding becomes available.