Template revised September 22, 2016. COMMISSION AGENDA MEMORANDUM Item No. CTION ITEM March 28, 2017 Amount of this request: $1,400,000 Total estimated project cost: $1,400,000 ACTION REQUESTED EXECUTIVE SUMMARY ��COMMISSION AGENDA Action Item No. Page of Template revised September 22 , 2016; format updates October 19, 2016. JUSTIFICATION Passenger processing times in the FIS are daily and sometimes multiple times per day exceeding 60 minutes. This very often results in passengers missing connecting flights because the total passenger processing times exceed our published 90 minute minimum connect times for international arrivals. Each time kiosks have been added, processing rates in Passport Control have improved and wait times have decreased. In 2015, the FIS passenger volume increased 18.5%, in 2016 volumes only rose 4.4%, yet the need t o stop traffic flow and queue arriving passengers in the International Corridor (called hold corridor event increased from 700 to 809. Each day, t he noon peak includes 50% of all flights and typically runs from 11:00 am to 2:00 pm . In 2016, the conges tion hit record levels with 8 to 10 hold corridors being the new norm during the noon peak and an overall increase in average minutes held from 20 minutes in 2015 to 23 minutes in 2016. The increased throughput in Passport Control will not only decre ase congestion in the FIS area, but also help alleviate the growing congestion in the Baggage Claim. As travelers get through Passport Control faster, they are waiting at their baggage carousel closer to when the bags start arriving which is preferable his is because as bags pile up without being claimed it becomes increasingly difficult for passengers to locate and claim their bags in the pile up. Both the FIS Lean Review and the Improving the FIS Experience workshop recommend an increase in APC kios ks to improve wait times, reduce congestion and increase capacity in the FIS until the new International Arrivals Facility (IAF) is built DETAILS To cope with the yearly increase in passenger volume as well as the additional passengers the upgraded APC kiosks will be able to process, this third phase of the APC kiosk project will upgrade the existing kiosks (for expanded eligibility) and install add itional kiosks to process passengers more efficiently through the FIS corridor. The addition APC kiosks will also require additional Document Verification Officer (DVO) p odiums to keep up with the processing capacity. Space limitations in the FIS corrido r coupled with additional APC kiosks will require the overall layout of APC kiosks to be analyzed and optimized to maximize passenger throughput An upgrade to the software on our current APC kiosks is required before we can begin to process the newly elig ible visitors at our kiosks. The 12 APC kiosks will be procured by the Port and installed by P ort crew and small works contractors , who are typically small businesses . The eight DVO podiums (an increase of three will be designed to meet CBP’s standards . New and existing power and data will be relocated for the re designed and optimized layout of both APC kiosks and DVO podiums. ��COMMISSION AGENDA Action Item No. Page of Template revised September 22 , 2016; format updates October 19, 2016. Scope of Work (1) Procure 12 APC kiosks. (2) Install data and wire for new kiosks. (3) Optimize APC kiosk layout (4) Demolish and reconfigure queuing posts for the optimized APC kiosk and DVO podium layout (5) Install 12 APC kiosks. (6) Procure 8 DVO podiums and make modifications as required for MPC scanners and CBP usage. (7) Relocate data and power for DVO podiums. (8) Install new podiums and re locate equipment from existing podiums to new. (9) Remove and replace signage as necessary Schedule Activity Design tart 2017 Q1 Construction tart 2017 Q2 se ate 2017 Q2 Cost Breakdown This Request and Total Project Design $224,000 Procurement $522,000 Construction $654,000 Total $1,400,000 ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 Procure and install only APC Kiosks instead of 12. Cost Implications: $1,100,000 Pros (1) The addition of APC kiosks will help alleviate congestion and increase usage (2) kiosks will not take up as much space as 12. (3) Some cost savings as compared to alternative Cons (1) Installing only APC kiosks does not utilize to the maximum available floor space that could accommodate 12 kios ks. (2) Adding kiosks will not get the efficiency needed to keep up with volumes and additional traveler types (B1/B2 visas). (3) The savings in this option are attributed only to savings in the cost of purchasing kiosks. The incremental cost for constructio n is minimal for twice as many kiosks. ��COMMISSION AGENDA Action Item No. Page of Template revised September 22 , 2016; format updates October 19, 2016. This is not the recommended alternative. Alternative 2 Don’t add any more APC kiosks, add CBP Officer staffing instead. Cost Implications: $0 Initial Cost to the Port Pros: (1) Additional CBP officers will slightly increase passenger throughput during peak hours and more significantly during off peak hours. (2) No construction required. (3) Significant short term cost saving. Cons: (1) Increases to CBP staffing require congressional approval. Furthermore, all currentl authorized document processing positions are being utilized during peak hours. Therefore, the additional staffing would increase throughput only during off peak times. Additional positions would be needed to increase throughput during the peak hours. (2) PC kiosks require less space to process passengers than additional CBP Officer ooths . Since there is a limited amount of space available in the FIS, more APC kiosks can be added than CBP Officer ooths . Therefore, additional APC kiosks will improve throug hput more than additional CBP staffing (3) Without the addition of APC kiosks and the increasing volumes, wait times will grow, throughput will decrease, holds will increase, and the passenger experience will continue to suffer. This is not the recommended alternative. Alternative 3 Add 12 APC kiosks and 8 Document Verification Podiums Cost Implications: $1,400,000 Pros: (1) The addition of any APC kiosks maximize utilization of available floor space. (2) Increases throughput of passengers through passport control to minimize wait times in corridor and on board aircraft. Cons: (1) This facility is scheduled to close in less than years and this solution will likely be decommissioned when it closes. This is the recommended alternative. ��COMMISSION AGENDA Action Item No. Page of Template revised September 22 , 2016; format updates October 19, 2016. FINANCIAL IMPLICATIONS Cost Estimate /Authorization Summary Capital Expense Total COST ESTIMATE Original estimate $1,400,000 $1,400,000 AUTHORIZATION Previous authorizations Current request for authorization $1,400,000 $1,400,000 Total authorizations, including this request $1,400,000 1,400 ,000 Remaining amount to be authorized Annual Budget Status and Source of Funds This project is considered as an operating expense due to the expected useful life of two years in the existing Federal Inspection Service (FIS) area. These systems can potentially be used in the new International Arrivals Facility (IAF). The expense project cost was n ot included in the 2017 Operating Budget. The project will be charged to the FIS cost center which will have an incremental FIS rate impact. Based on the Signatory Lease and Operating Agreement, the Port has discretion to make mid year rate adjustment if t he variance between the budgeted O&M expenses and actual results is expected to be ten percent (10%) or more. The Port shall provide the airlines with at least 30 days advance written notice of rate adjustments to be made. Financial Analysis and Summary Project cost for analysis $1,400,000 Business Unit (BU) Federal Inspection Services Effect on business performance (NOI after depreciation NOI after depreciation will decrease IRR/NPV (if relevant) CPE Impact $0.03 FIS incremental rate increase of $0.72 Future Revenues and Expenses ( Total cost of ownership Future maintenance costs for the additional APC Kiosks will increase incrementally ATTACHMENTS TO THIS REQUEST Slide presentation PREVIOUS COMMISSION ACTIONS OR BRIEFINGS July 12, 2016 The On July 12, 2016, Commission approved accelerating the execution of an extension to the Concourse A sterile corridor, a portion of the Phase 2 work ��COMMISSION AGENDA Action Item No. Page of Template revised September 22 , 2016; format updates October 19, 2016. planned for the IAF. The scope of this work includes additional automated passport control (APC) kiosks and additional CBP verification podiums October 28, 2013 The Commission approved Automated Passport Control Kiosks in FIS project at Seattle Tacoma International Airport (CIP #C800667) July 23, 2013 Sea Tac International Airport International Arrivals Facility Preliminary Authorization July 9, 2013 Sea Tac Airport International Arrivals Facility Briefing. July 9, 2013 Alternative Public Works Contracting Briefing. April 9, 2013 Sea Tac Airport Internat ional Arrivals Facility Briefing. June 26, 2012 Airport Terminal Development Challenges at Seattle Tacoma International Airport. June 14, 2011 International Air Service Growth and Future Facility. February 2, 2010 Briefing on South Satellite Passenger Growth and Facility Considerations, Delta’s Proposed Airline Lounge and Other Possible Future Aviation Projects.