8e Memo Passenger Loading Bridge Renewal and Replacement Phase 3
COMMISSION AGENDA MEMORANDUM Item No. 8e ACTION ITEM Date of Meeting January 12, 2021 DATE: December 18, 2020 TO: Stephen P. Metruck, Executive Director FROM: Eileen Francisco, Acting Director, Aviation Facilities and Capital Programs Wayne Grotheer, Director, Aviation Project Management SUBJECT: Passenger Loading Bridge Renewal and Replacement Phase 3 (CIP#C801180) Amount of this request: $13,850,000 Total estimated project cost: $14,000,000 ACTION REQUESTED Request Commission authorization for the Executive Director to: (1) Prepare design and construction bid documents for the replacement of the Passenger Loading Bridges (PLBs) at Seattle-Tacoma International Airport and ; (2) Purchase seven PLBs, six fixed walkways and seven 400 Hz gate boxes for specified Gates; (3) Use Port of Seattle crews, as well as small and major works on-call contracts to perform the construction work. This request is in the amount of $13,850,000, for a total estimated project cost of $14,000,000. EXECUTIVE SUMMARY This project will replace the next set of seven PLBs that are at the end of their service life and/or have significant maintenance issues, which require a full replacement. Gates C18, C20, D3, D5, D8, D9, and D10 have been identified to be included in the next phase of this project. The project will remove the existing equipment, including the columns, install newly constructed equipment that meets current design standards, and upgrade the foundations for each column, if necessary. JUSTIFICATION The PLBs at Seattle-Tacoma International Airport (Airport) have high utilization compared to airports with similar annual enplanements. In 2019, the Airport processed approximately 336,000 passengers per bridge, well above the average of the top 20 airports at approximately 220,000 passengers per bridge. 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 replacement is required. Many of the replacement parts for 25+ year old PLBs are no longer available. As a result, repair time is extended, while parts are fabricated or re-manufactured, or used parts are located from other PLB owners. Unplanned downtime caused by failure of obsolete parts can extend for several weeks, seriously disrupting airline operations. This occurred at Gate S12, in May 2019, after a quarterly inspection found the structure to be critically failing. Template revised January 10, 2019. COMMISSION AGENDA Action Item No. __8e__ Page 2 of 5 Meeting Date: January 12, 2021 This required the PLB to be shut down for a significant amount of time to make temporary repairs until the PLB could be replaced. The work will renew and replace existing assets that are highly utilized by customers and employees as they travel through the airport. Disruption to the bridge operations have a direct impact to operations. Diversity in Contracting The project team intends to increase investment in Women/Minority Business Enterprise (WMBE) to ensure their increased access to opportunities by using an existing IDIQ design contract which has a 24% WMBE aspirational goal. Small works contracts will be administered in support of this project, and the Diversity in Contracting Department along with the project team will be conducting outreach to WMBE businesses of the construction opportunities. DETAILS The Port Construction Services crew is knowledgeable and capable of completing the modifications and replacements. The crew also provides the ability to quickly re-prioritize which gates are being replaced and the timing. Given the dynamic environment of the Airport and operations, the project team can respond to challenges and take advantage of opportunities to complete the replacements. Scope of Work (1) Design services for this scope of work will be provided under an existing IDIQ design service contract. (2) Purchase and installation for PLBs, associated fixed walkway, and related components at Gates C18, C20, D3, D5, D8, D9, and D10. This includes the necessary architectural, electrical, data, and mechanical infrastructure upgrades to meet new PLB standards and current code requirements. (3) PCS will perform work associated with preparing the foundations upgrade or replacement and provide construction management services for all PLB installations at all gates. The foundation for each column will be evaluated to determine if an upgrade is required for compliance with the 2018 seismic code revision. (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 Airport Maintenance for faster response. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. __8e__ Page 3 of 5 Meeting Date: January 12, 2021 Schedule Replacement Schedule: 2021: Gates C18 & C20 2022: D3 & D5 2023: D10 & D9 2024: D8 This schedule is tentative and can change due to varying conditions and priorities for gate outages. The order can change as well, if there are opportunities to overlap outages with other project closures. Activity Design start 2021 Quarter 1 Commission construction authorization 2021 Quarter 1 Construction start 2021 Quarter 3 First In-use date 2021 Quarter 4 Last In-use date 2024 Quarter 4 Cost Breakdown This Request Total Project Design $3,581,000 $3,581,000 Construction $10,419,000 $10,419,000 Total $14,000,000 $14,000,000 ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 Delay the project Cost Implications: Approximately $20,000 would need to be expensed; potential for additional costs if PLB fails during delay and is rushed to be replaced. Pros: (1) Delayed capital investment. Cons: (1) Bridges will be operating beyond their service life. (2) Emergency bridge replacements cost more and have a greater impact to operations. (3) Future replacement projects may cost more. (4) Increased risk of gate outages. (5) Separate projects will need to replace smaller components of the bridge to keep it functional. (6) Outdated technology may not support other bridge improvements (Safedock, Jetdock). This is not the recommended alternative. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. __8e__ Page 4 of 5 Meeting Date: January 12, 2021 Alternative 2 PLB Bridge Replacement Only Cost Implications: $13,500,000 Pros: (1) Replace all seven PLBs that are at the end of their service life. (2) Upgrade bridge foundation to meet current code requirements. (3) Install new equipment with capacity for future improvements. Cons: (1) Higher capital investment. (2) Will not replace all 400 Hz gate boxes that are near or beyond end of life. (3) A separate project is required to replace the gate boxes. This is not the recommended alternative. Alternative 3 PLB Bridge Replacement and New 400 hz Gate Boxes Cost Implications: $14,000,000 Pros: (1) Replace all seven PLBs that are at their service life. (2) Upgrade bridge foundation to meet current code requirements. (3) Install new equipment with capacity for future improvements. (4) Replace seven aging 400 Hz gate boxes. Cons: (1) Highest capital investment. This is the recommended alternative. FINANCIAL IMPLICATIONS Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Original estimate $12,165,000 $0 $12,165,000 Current change $1,835,000 0 $1,835,000 Revised estimate $14,000,000 0 $14,000,000 AUTHORIZATION Previous authorizations $150,000 0 $150,000 Current request for authorization $13,850,000 0 $13,850,000 Total authorizations, including this request $14,000,000 0 $14,000,000 Remaining amount to be authorized $0 $0 $0 Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. __8e__ Page 5 of 5 Meeting Date: January 12, 2021 Annual Budget Status and Source of Funds This project (CIP C801180), was included in the 2021-2025 Capital Budget and Plan of Finance with a budget amount of $12,165,000. A budget increase in the amount of $1,835,000 was transferred from the Aeronautical Reserve (CIP C800753) resulting in zero net change to the Aviation capital budget. The funding source will be the Airport Development fund and revenue bonds. This project was submitted on December 4, 2020, to the airlines for the Majority-in- Interest approval. Financial Analysis and Summary Project cost for analysis $14,000,000 Business Unit (BU) Passenger Loading Bridge Effect on business performance NOI after depreciation will increase due to inclusion of (NOI after depreciation) capital (and operating) costs in airline rate base. IRR/NPV (if relevant) N/A CPE Impact $.03 in 2022; $.05 by 2024 ATTACHMENTS TO THIS REQUEST (1) Presentation slides PREVIOUS COMMISSION ACTIONS OR BRIEFINGS July 9, 2019 (6F) Authorization to advertise and award a PLB specific IDIQ contract. Template revised June 27, 2019 (Diversity in Contracting).
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