4d. Memo
COMMISSION AGENDA MEMORANDUM Item No. 4d ACTION ITEM Date of Meeting February 28, 2017 DATE: February 17, 2017 TO: Dave Soike, Interim Chief Executive Officer FROM: Jeffrey Brown, Director Aviation Facilities and Capital Programs Wayne Grotheer, Director, Aviation Project Management Group SUBJECT: Passenger Loading Bridge Renewal/Replacement (CIP #C800793) Amount of this request: $2,200,000 Total estimated project cost: $10,000,000 ACTION REQUESTED Request a single Commission authorization for the Chief Executive Officer to (1) proceed with design for the replacement of the passenger loading bridge (PLB) at Gate B10 and the PLB and fixed walkway at Gate S11; (2) purchase two new PLBs and a fixed walkway; (3) use Port crews and small works contracts. The amount of this request is $2,200,000. EXECUTIVE SUMMARY Reliable, well operating passenger loading bridges are critical to airline and airport operations. Port staff has created a prioritized list of PLBs whose age and condition indicate a need for replacement or refurbishment. Nine PLB's (and associated fixed walkways) considered to be at highest risk for failure are scheduled for replacement or under this project: Gates B10, C9, C11, C14, C15, C16, C18, D11, & S11. To minimize impacts to airlines and airport operations, these nine PLB's will be replaced over the next four years. Staff will request future Commission authorization for the next phases of this work scheduled for 2018 through 2020. These PLB's are part of the extended-year sourcing that is one of the procurement excellence initiatives. JUSTIFICATION The PLB's at Sea-Tac have high utilization compared to airports with comparable annual enplanements. In 2015, Sea-Tac processed approximately 217,000 passengers per gate, the highest of all peer airports and well above the national average of approximately 153,000. Any unplanned downtime due to PLB or fixed walkway failure impacts airlines and customer service. PLBs have a service life of approximately 25 years before major refurbishment or replacement is required. Many of the parts for 25+ year old PLB's are no longer available, as a result, repair time is extended while parts are fabricated, remanufactured or used parts are located from Template revised September 22, 2016. COMMISSION AGENDA Action Item No. 4d Page 2 of 5 Meeting Date: February 28, 2017 other PLB's owners. Unplanned downtime caused by failure of obsolete parts can extend for several weeks, seriously disrupting airline operations. DETAILS AVPMG has worked in conjunction with AV Operations, AV Planning, AV Facilities and Infrastructure and AV Maintenance to create a prioritized list of Passenger Loading Bridges (PLBs) whose age and condition are cause for replacement or refurbishment. PLB's at B10, C9, C15, D11, & S11 are 30+ years old. Scheduled for replacement in 2017 (this authorization) 1. S11 Bridge and Walkway -- 1983 (A3 60/119) 2. B10 Bridge -- 1987 (A3 58/110) Scheduled for replacement in 2018 (future authorization) 1. C15 Bridge -- 1970's (A3 60/119) 2. C9 Bridge -- 1980's (A3 44/78) 3. D11 Bridge -- 1984 (?) PLBs at C11, C14, C16, & C18 are 25+ years old. Scheduled for replacement in 2019 (future authorization) 1. C11 Bridge 1992 (A2 57/84) 2. C14 Bridge 1990 (AD2 61/91 185L) Scheduled for replacement in 2020 (future authorization) 1. C16 Bridge 1992 (A2 59/78) 2. C18 Bridge _ 1992 (A3 58/110 125R) Replacement of the PLBs is preferred as it will take the gates out of service for only 2 weeks while a complete refurbishment could leave the gate inoperative for 6-12 weeks. Scope of Work 1) Design services for this scope of work will be provided under existing indefinite delivery, indefinite quantity (IDIQ) design services contracts. 2) Purchase and installation of new PLBs, associated fixed walkway and related components at Gates B10 and S11 along with necessary architectural, electrical, data and mechanical infrastructure upgrades to meet new PLB standards and current code requirements. 3) Port Construction Services (PCS) will perform work associated with preparing the foundations upgrade or replacement and provide construction management services for the PLB installations at both gates. Template revised September 22, 2016; format updates October 19, 2016. COMMISSION AGENDA Action Item No. 4d Page 3 of 5 Meeting Date: February 28, 2017 4) The new bridges will be connected to the Port's facility monitoring system so any malfunction that shuts the bridge down will be promptly reported to Maintenance for faster response. Schedule Installation of B10 and S11 is scheduled for the fall of 2017. Activity Design start 2017 Quarter 1 Construction start 2017 Quarter 3 In-use date 2017 Quarter 4 Per the terms of the airline signatory lease and operating agreement (SLOA), the airlines will have an opportunity to object to this project through a majority-in-interest (MII) vote. The MII ballot will be submitted to the airlines in early March. Cost Breakdown This Request Total Project Design $400,000 $1,500,000 Construction 1,900,000 $8,500,000 Total $2,300,000 $10,000,000 ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 Refurbish the gates in place. Cost Implications: Total project for nine PLBs $7,500,000 ($1,670,000 for PLBs at B10 & S11) Pros: (1) Lowest first cost Cons: (1) Increased downtime and impact to airport operations (6-12 week downtime) (2) Reduced PLB service life (15 year service life) (3) Highest total cost of ownership (4) Does not provide for new PLB models to adjust for evolving airline fleet mix This is not the recommended alternative Template revised September 22, 2016; format updates October 19, 2016. COMMISSION AGENDA Action Item No. 4d Page 4 of 5 Meeting Date: February 28, 2017 Alternative 2 Replace the existing PLB's with new equipment. Cost Implications: Total project for nine PLBs $ 10,000,000 ($2,300,000 for PLBs at B10 & S11) Pros: (1) Minimizes gate downtime and impact to airport operations (2-3 week downtime) (2) Greatest PLB service life (25 years) (3) Lowest total cost of ownership (4) Allows for adjustment to PLB models to account for evolving fleet mix. Cons: (1) Highest first cost This is the recommended alternative. FINANCIAL IMPLICATIONS Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Original estimate $10,000,000 $0 $10,000,000 AUTHORIZATION Previous authorizations (preliminary funds) $100,000 0 $100,000 Current request for authorization $2,200,000 0 $2,200,000 Total authorizations, including this request $2,300,000 0 $2,300,000 Remaining amount to be authorized $7,700,000 $0 $7,700,000 Annual Budget Status and Source of Funds The Passenger Loading Bridges Project CIP#C800793 is included in the 2017-2021 capital budget and plan of finance with a budget of $10,000,000. The funding sources will include the Airport Development Fund and future revenue bonds. Financial Analysis and Summary Project cost for analysis $10,000,000 Business Unit (BU) Passenger Loading Bridges Effect on business performance NOI after depreciation will increase (NOI after depreciation) IRR/NPV (if relevant) N/A CPE Impact $.04 in 2021 Template revised September 22, 2016; format updates October 19, 2016. COMMISSION AGENDA Action Item No. 4d Page 5 of 5 Meeting Date: February 28, 2017 ATTACHMENTS TO THIS REQUEST None PREVIOUS COMMISSION ACTIONS OR BRIEFINGS None Template revised September 22, 2016; format updates October 19, 2016.
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