For the 3s, no. You don't need to because as I said, you're comparing the times. Our 22s says it takes 22s of free-fall for the objects to cross paths. The 3s was already accounted for when we supposed that [tex]v_1[/tex] was 29.4m/s.
For the displacement, you managed to figure out time, and since you know that,
[tex]
y=v_{i}t+ \frac{1}{2}at^{2}[/tex]
You have your answer really, 22s tells you everything. Go ahead and try putting 22s in both [tex]y_1[/tex] and [tex]y_2[/tex], see what you get for both displacements...