Template revised September 22, 2016. COMMISSION AGENDA MEMORANDUM Item No. CTION ITEM Amount of this request: $5,660,000 Total estimated project cost: 0,000 ACTION REQUESTED EXECUTIVE SUMMARY JUSTIFICATION ��COMMISSION AGENDA Action Item No. __ Page of Template revised September 22, 2016; format updates October 19, 2016. DETAILS Scope of Work (1) Replace approximately 9 linear of seven Design tart 2017 Quarter 2 Advertisement for construction contract Quarter Construction tart 2018 Quarter 2 se ate 2018 Quarter 4 Cost Breakdown This Request Total Project Design 0,000 ,1 ,00 Construction $4,56 ,000 ,000 Total 0,000 0,000 ��COMMISSION AGENDA Action Item No. __ Page of Template revised September 22, 2016; format updates October 19, 2016. ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 Do not replace the substandard AOA perimeter fence or access gates on the airfield. Cost plications Pros (1) No additional cost. Cons (1) Continued use of the substandard AOA perimeter fence and access gates presents risks of unauthorized access to the restricted areas. (2) Not in compliance with the Airport Security plan or TSA agreement for the standard of twelve Cost Implications: $4,000,000 The estimate is based on the assumption delay project to 2019. If the project is delayed beyond 2019, the cost estimate would be further increased to reflect annual escalation. Pros (1) Lower capital cost for 2018. (2) Less construction impact to AOA in 2018. (3) Installation of sections of taller AOA perimete r fence will increase the difficulty in gaining unauthorized access through certain areas. (4) Replacement of E 105 with faster operating system will help to shorten Fire Department response time. Cons (1) Delayed replacement of the rest of the substandard AOA ��COMMISSION AGENDA Action Item No. __ Page of Template revised September 22, 2016; format updates October 19, 2016. Alternative 3 Replace all identified substandard AOA perimeter fence and access gates during the 2018 construction season. Cost Implications: $5,680,000 Pros (1) Fully comply with the Airport Security plan and TSA agreement for the standard of twelve Cons (1) Earlier capital spending than the other alternatives. This is the recommended alternative. FINANCIAL IMPLICATIONS of AOA Perimeter Fence Line Standards Compliance Project Cost Estimate /Authorization Summary Capital Expense Total COST ESTIMATE Original estimate 3,993,00 3,993,00 Current change 1,687,00 1,687,00 Revised estimate 5,680,00 5,680,00 AUTHORIZATION Previous authorizations 20,00 20,00 Current request for authorization 5,660,00 5,660,00 Total authorizations, including this request 5,680,00 5,680,00 Remaining amount to be authorized Annual Budget Status and Source of Funds This project was included in the 2013 2017 capital budget and plan of finance with a budget of $3,993,000. The budget increase is due to added scope items The budget increase will be transferred from the Aeronautical Allowance CIP (C800753), resulting in no net change to the airport capital budget. The funding source will be the Airport Development Fund. Additionally, Port staff is pursuing Federal Aviation Administration (FAA) Airport Improvement Program (AIP) grants for this project. ��COMMISSION AGENDA Action Item No. __ Page of Template revised September 22, 2016; format updates October 19, 2016. Financial Analysis and Summary Project cost for analysis $5,680,000 Business Unit (BU) Airfield Movement Area Effect on business performance (NOI after depreciation) NOI after depreciation will crease IRR/NPV (if relevant) N/A CPE Impact .02 in 2019 Future Revenues and Expenses ( Total cost of ownership Annual Operating and Maintenance costs are not anticipated to change appreciably. The estimated life expectancy for this project is 20 years for ATTACHMENTS TO THIS REQUEST Slide presentation. PREVIOUS COMMISSION ACTIONS OR BRIEFINGS None