8b. Memo

Baggage Claim 15 and 16 Replacement

AGENDA MEMORANDUM                        Item No.          8b 
ACTION ITEM                            Date of Meeting    September 27, 2022 

DATE:     September 16, 2022 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Eileen Francisco, Director, Aviation Project Management Group 
Keri Stephens, Director, Aviation Facilities and Capital Program 
SUBJECT:  Baggage Claim 15 & 16 Replacement Project Design Authorization (CIP # C801127) 
Amount of this request:               $3,592,000 
Total estimated project cost:         $14,325,000 
Request Commission authorization for the Executive Director to proceed with design of the
Baggage Claim 15 & 16 Replacement project at Seattle-Tacoma International Airport. The amount
requested under this authorization is $3,592,000.
Baggage claims 15 & 16 are the oldest claim devices originally installed between 1975-1985 and
rebuilt in 1998. They are beyond their useful life and require extensive maintenance. This project
will replace the existing flat plates with slope plate devices that match the rest of the baggage
claim and improve reliability. 
This project will also solve a safety concern in the bag well by installing the new claim input belts
closer to the existing wall to allow for a wider tug driving lane. This creates space for the airline
employees to drop off baggage onto the claim device input belt.
An additional benefit of the project is 1,000 square feet of tenant space build out in the bag claim
area that will meet our tenant business needs.
The existing baggage claims 15 & 16 are flat plate devices and are well beyond their useful life of
15 years. They are both outdated, multiple components are showing signs of needing
replacement, and require customized parts for repairs. Replacement parts for these devices are
not readily available due to the age and have a 2–3-week lead time for fabrication. If the
Maintenance shop does not have the parts on hand or there are too many part failures, then the
claim device will be unavailable until the parts are received. New devices are quieter and have
better aesthetics while also being more energy efficient with improved controls. 

Template revised January 10, 2019.

            COMMISSION AGENDA – Action Item No. __8b__                             Page 2 of 4
Meeting Date: September 27, 2022 
To solve safety concerns, the project will install the new feed belts closer to the existing wall
increasing the total drive lane width by approximately 14 inches, for safer operations.
The addition of tenant lease space will allow for future tenant operations in the bag claim area 
to meet business needs. 
Diversity in Contracting 
The project will utilize an existing indefinite definition/indefinite quantity (IDIQ) baggage
handling systems design contract with a 10% women and minority business enterprises (WMBE)
The project will replace the existing baggage claims 15 & 16 with updated slope plate devices.
This includes all feed conveyor, fire security doors, and controls. The project will also build out
1,000 square feet of move in ready tenant lease space. Total project costs are estimated to be
$14,325,000 with $3,667,000 for the design phase.
Scope of Work
The scope of work will include the following:
(1)   Design and construct new baggage claim devices 15 & 16;
(2)   Modify existing HVAC to allow for conveyor right of way;
(3)   Patch wall penetrations for existing baggage claim 15 & 16 devices (4 locations);
(4)   Design and replace baggage claims 15 & 16 with slope plate devices;
(5)   Reconfigure feed conveyor to transport baggage from the ceiling;
(6)   Increase overall bag claim capacity by allowing for bags to be double stacked on the
claim devices;
(7)   Improve bag well tug traffic safety by moving the drop off belt closer to the wall for both
claims, creating a wider drive lane; and 
(8)   Create new tenant lease space for future tenants. 
Design start                                       2022 Quarter 4 
Commission construction authorization          2023 Quarter 4 
Construction start                                2024 Quarter 2 
In-use date                                       2025 Quarter 2 
Cost Breakdown                                     This Request           Total Project 
Design                                                  $3,592,000             $3,667,000 
Construction                                                     $0            $10,658,000 
Total                                                         $3,592,000             $14,325,000 

Template revised June 27, 2019 (Diversity in Contracting).

            COMMISSION AGENDA – Action Item No. __8b__                             Page 3 of 4
Meeting Date: September 27, 2022 

Alternative 1 – Do not proceed with this project.
Cost Implications: $0
(1)   Lowest cost alternative.
(2)   No construction in the bag claim area and no impact to claim capacity.
(1)   Equipment condition will continue to be a concern with an increasing risk of failure. 
(2)   No improvement to bag well operation safety conditions. 
(3)   Does not add tenant lease space 
This is not the recommended alternative. 
Alternative 2 – Replace claims 15 & 16.
Cost Implications: $14,325,000 
(1)   Replaces the oldest baggage claim devices to reduce maintainability and increase
(2)   Increases tug traffic safety in the bag well 
(3)   Creates more tenant lease space.
(1)   Impact to operations while replacing. 
This is the recommended alternative. 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
Original estimate                                $11,000,000               $0     $11,000,000 
Budget increase                                 $3,325,000              $0      $3,325,000 
Revised estimate                              $14,325,000              $0    $14,325,000 
Previous authorizations                             $75,000               $0         $75,000 
Current request for authorization                $3,592,000               $0     $3,592 ,000 
Total authorizations, including this request       $3,667,000               $0      $3,667,000 
Remaining amount to be authorized           $10,658,000             $0    $10,658,000 

Template revised June 27, 2019 (Diversity in Contracting).

            COMMISSION AGENDA – Action Item No. __8b__                             Page 4 of 4
Meeting Date: September 27, 2022 
The original estimate of $11,000,000 was from 2020 and included only replacing baggage claims
15 & 16. This project was on hold until Q2 2022 with a current revised estimate of $14,325,000.
The increase in estimated cost is due to the changes in escalation since the 2020 estimate and
the addition of the tenant lease space. 
Annual Budget Status and Source of Funds 
This project, CIP C801127, was included in the 2022-2026 capital budget and plan of finance with
a budget of $11,000,000. A budget increase of $3,325,000 was transferred from the Aeronautical
Allowance C800753 resulting in a zero net change to the Aviation capital budget. The funding
sources will be the Airport Development Fund (ADF) and revenue bonds. This project (with the
revised budget) received Majority-In-Interest (MII) approval from the airlines.
Financial Analysis and Summary 
Project cost for analysis              $14,325,000 
Business Unit (BU)                  Baggage 
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                       $.04 in 2026 

(1)   Presentation slides

Template revised June 27, 2019 (Diversity in Contracting).


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