Item No.:                           6e_s upp 
Meeting Date:                  June 27, 2017 
C800612 Baggage Optimization 
Capacity Acceleration 
June 27, 2017 

1

Capacity Increase Scope Request 
The Baggage Optimization project was initially scoped in 2012 to accommodate
a projected volume of 45 million annual passengers (MAP), with an expandable
design to accommodate future growth. 
45 MAP was expected to be adequate capacity through 2027; however, due to
unprecedented growth, the Airport exceeded 45 MAP in 2016. 
To avoid significant negative impacts to airlines and travelers, acceleration of
this future work is necessary now in order to increase the baggage system
capacity to accommodate a projected 60 MAP. 
Requesting to incorporate expansion into existing Baggage Optimization
Phases 2 and 3. 
The Airport is growing faster than was anticipated.
2

Revised Baggage Optimization Phases 
(including future capacity of 60 MAP) 
Construction    Construction
Project Phase              Budget 
Start              End 
Phase 1                       $135 M              Q2 2017         Q3 2019 
Phase 2                   $83 M + 60 MAP          Q3 2019         Q2 2022 
Phase 3                   $100 M + 60 MAP          Q2 2022          Q4 2024 
Original Total                    $319 M                    Q4 2023 (Original) 
60 MAP Capacity             + $150 M              14 months 
Favorable Phase 1 Bid          - $24 M 
Revised Total                   $445 M                  Q 2024 
This capacity increase will add $150M and 14 months to the project. 
3

Budget Details 
Budget Increase: 
+ $150,000,000 Capacity Increase scope 
- $24,000,000 Return from favorable Phase 1 bid 
= $126,000,000 Net Increase for Increased Capacity 
New Total Project Budget 
$319,050,000 Original Budget 
+ $126,000,000 Net Increase for Increased Capacity 
= $445,050,000 Revised Total Estimate Project Cost 

Revised project budget will be $445,050,000. 
4

Budget Details 
This Request: 
+ $19,937,000   Project Management funds to expand capacity 
+ $5,000,000     Port crews and small works to perform additional
construction work 
- $24,300,000    Return from favorable Phase 1 bid (previously 
authorized for construction) 
= $637,000      Net Increase for Increased Capacity 

This request is for Commission to authorize $637,000. 
5

Additional Capacity Scope Details 
Five CTX machines (TSA provided) and spur lines 
Two additional mainlines 
Two additional recirculation lines 
Building infrastructure to accommodate additional BHS capacity 
With coordination of the IAF project- 
Two additional makeup units 
One manual encode station 
Partial demolition of IAF baggage system 
Additional feedlines 
With coordination of the South Satellite renovation project- 
Additional outbound line in the baggage tunnel 
Two additional makeup units 
Availability to add manual encode and additional makeups in the future 
Required Baggage Optimization Scope to achieve 60 MAP 
6

Port Construction Services Pre-Work Scope 
H-line wall code compliance for Phase 2 permit 
Claim 13 conveyor input installation 
Right of way clearances 
Right of way conveyor, MCP and conduit demolition 
Change order alternative 
Portering 
Shutdown support 
Equipment movement and TSA/contractor support 
Tenant, TSA, Airline and Port move support 
Testing Support 
This PCS work will help to streamline the transition between phasing and capacity expansion. 
7

Baggage Optimization 
Project Update 

8

Q1 Financials 
Total Project Budget                                    $ 319,050,000 
Total TSA Contribution                                                       $ 93,220,422 
Total Commission Authorization to Date                                  $ 135,375,000 
Amount Spent to Date (as of 3-31-17)                                     $ 20,454,390 
TSA Design Reimbursement to Date (as of 3-31-17)                        $ 5,834,580 



The project is within budget as originally scoped. 
9

Phase 1 Bid Results 
Contract Awarded to lowest bidder: 
PCL Construction Services Inc. (General Contractor) 
Jervis Webb (Baggage Sub-Contractor) 
Bid Amount: 
$52,000,000.00 (Below Engineer's Estimate) 

The project returned $24M due to a low bid below the Engineer's Estimate. 
10

Phase 1 Small Business Requirements 
Small Business Requirement: 15% 
Certified Small Business: 5% included within 15% total 
Specialized Baggage, Controls, and Electrical equipment
installation is not heavily represented in the Small Business
Community. 

Total Requirement: 15% Small Business 
11

Phase 1 Pre-work 
New makeup device and a new
odd-size device in the North end of
the bagwell have been installed. 
Work completed by PCS, Port
Maintenance, and Small Works. 


Completion of pre-work allowed Horizon operations to be moved prior to major contract work
12