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Item No.: 7b Attach Meeting Date: May 26, 2015 2016 AVIATION DIVISION BUSINESS PLAN May 20, 2015 I. MISSION: Connecting our region to the world through flight. II. VISION: Sea-Tac is a welcoming front door, embodying the spirit of the Northwest an economic engine and a source of regional pride. III. MAJOR/NEW INITIATIVES Complete 16C/34C Phase 2 by Q3 2016 Complete Sustainable Airport Master Plan environmental review by Q4 2016 Complete construction of NorthSTAR program and International Arrivals Facility Begin remote handstand aircraft loading/unloading by Q2 2016 Renegotiate and gain approval of a revised Port of Seattle / City of SeaTac Interlocal Agreement (ILA) prior to expiration of current ILA Fully implement Quality Jobs Initiative policies and programs Implement Airport Dining and Retail (ADR) Master Plan, including infrastructure upgrades, lease phasing strategy and new competitive solicitations and resulting leases. Adjust security operations and invest in new facilities to remain in compliance with evolving TSA requirements related to employee screenings Prepare in 2016 and develop in 2017 the successor lease or resolution to the current Signature Lease and Operating Agreement IV. STRATEGIES - SUMMARY 1. Operate a world-class international airport by: Ensuring safe and secure operations Anticipating and meeting the needs of tenants, passengers and the region's economy Managing Airport assets to minimize long-term total cost of ownership. 2. Become one of the top customer service airports in North America. 3. Lead the U.S. airport industry in environmental innovation and minimize the airport's environmental impacts. 4. Keep airline costs as low as possible without compromising operational and capital needs. 5. Maximize non-aeronautical net operating income consistent with current contracts, appropriate use of Airport properties and market demand. 6. Continually invest in a culture of employee development, organizational improvement and business agility. 7. Maintain valued community partnerships based on mutual understanding and socially responsible practices. 2016 Aviation Business Plan V. DIVISION DESCRIPTION The Port of Seattle owns and operates Seattle-Tacoma International Airport, the 13th largest airport in the U.S. in 2014 based on passengers. The Airport is located approximately 12 miles south of downtown Seattle. Currently, the Airport has facilities for commercial passengers, air cargo, general aviation and aircraft maintenance on a site of approximately 2,800 acres. Airport facilities include the Main Terminal, the South and North Satellites, a parking garage, and a consolidated rental car facility. The Airport has three runways that are 11,900 feet, 9,425 feet and 8,500 feet in length. VI. INDUSTRY ASSESSMENT The historical volatility of the earnings of the U.S. airline industry has stabilized. After losing money in seven out of nine years from 2001 2009, the industry was profitable in 2014 for the fifth year in a row. According to Airlines For America, airline profits have translated into the highest level of capital spending in fourteen years. Airline domestic capacity in 2015, as measured by available seats, is reaching its highest level in seven years, and international seats are at an all-time high. Demand for air travel is driven by an expanding economy, employment growth, rising personal income and higher consumer sentiment. Industry consolidation has left three major legacy carriers: American, United and Delta. Together with Southwest, these four airlines dominate the U.S. market. Other smaller carriers, such as Alaska, Jet Blue, Hawaiian and Virgin America constitute the next largest group of commercial carriers. Ultra-low-cost carriers such as Spirit, Frontier and Allegiant make up another group, although these carriers have a very small presence at Sea-Tac airport. At Sea-Tac Airport, in 2014, domestic enplaned passengers grew at 7.8% while international grew at 6.8% for a total growth of 7.7%. For 2014, international enplaned passenger made up 10.2% of total passengers. For 2014, Alaska Air Group was the largest carrier at Sea-Tac, accounting for 51.5% of enplaned passengers, followed by Delta with 15.6%, United with 8.2% and Southwest with 8.0%. Looking at just international enplaned passengers, Delta was the largest carrier with 28.2% of the total, followed very closely by Alaska Air Group with 27.9%, British Airways with 6.5% and Emirates with 5.5%. 2 | P a g e 2016 Aviation Business Plan VII. BUSINESS ASSESSMENT/DRIVERS The 2016-2020 Seattle-Tacoma International Airport Business Plan responds in significant part to four new challenges that were not nearly so apparent a year ago. While a substantial portion of the business plan is comprised of longer-term objectives and action plans updated from the previous year, there are also critical new elements addressing four key issues or trends, each driving new or more urgent initiatives. These drivers are: 1. The dramatic growth in passengers and airfield operations; 2. The accelerating pace of passenger and airline reliance on, and expectations for, mobile technology; 3. The emerging new facility requirements in the near-, medium-, and long-term to respond to current airline activity and the long-lead-time facilities identified by the Sustainable Airport Master Plan; and 4. Changes in federal security requirements, resulting from recent events at other airports, which will require increased attention to employee screening and, over time, may lead to 100% employee screening. Traffic Growth After experiencing enplaned passenger growth of 7.7% in 2014, Sea-Tac is conservatively anticipating growth of approximately 10% in 2015. (The airport experienced 13.1% passenger growth in the first quarter of 2015.) This would be the fastest rate of growth since 1994-1995 and is due to a combination of a strong local economy, population growth (in 2013, Seattle was the fastest growing U.S. city among the 50 largest), and a strategic decision by Delta to make Sea-Tac a gateway international hub. To date, in spite of the dramatic increase in operations and passengers, we have not seen an appreciable decrease in load factors, which is an indicator that sustained growth at the airport will continue. The Sustainable Airport Master Plan (SAMP) activity forecast (completed in Q3 2014) indicates that the region's economy will drive passenger growth of 3.8% for 2014 2018 and 3.2% for 2018 2023. Assuming that growth will revert to the mean, the business plan is based on an expectation that 2024 enplanements equal those projected in the SAMP forecast (25.9 million). However, the exceedingly high current growth rates suggest that that projection may be conservative to a fault. The current 2015 - 2019 capital program totals $1.7 billion and includes four major projects: reconstruction of runway 16C/34C, the NorthSTAR program including the expansion of the North Satellite, the baggage optimization project, and the International Arrivals Facility (IAF). While both the IAF and the North Satellite expansion project (part of NorthSTAR) will add important capacity when complete, both will require that gates be taken out of service for extended periods of time. The unexpectedly fast growth rates and the loss of gate capacity means that gate shortages at peak periods will drive the need for off-gate operations (remote 3 | P a g e 2016 Aviation Business Plan loading and unloading of aircraft) much sooner than originally anticipated. This is now an urgent challenge. Technology Demands Both our airline partners and our passenger customers are utilizing various technology devices at an accelerating pace. For example, airlines are moving to (1) mobile devices for passenger processing and (2) cameras in their ramp areas to monitor and manage aircraft movements, loading and unloading. We anticipate that within a few years, airlines will make far greater use of passenger self- bag tagging and centralized common use bag drop. All of these technological solutions will help the airport get higher passenger throughput in the terminal and faster aircraft processing on the ramp essentially increasing the capacity of the terminal complex more costeffectively than adding more terminal facilities. In addition, the density of passengers' laptops, tablets, and smart phones is putting increased pressure on our communications infrastructure. We also anticipate the opportunity and the customer service benefit of (1) dynamic (interactive) signage which will provide passengers far better information, specific to their actual interest or query and (2) using dispersed technologies (e.g., i-beacons) and/or an airport "app" that will meet the needs of the ever-growing passenger expectation for smart phone-based information. Meeting both the airlines' and passengers' technology needs and expectations will require careful attention to, and investment in, technology infrastructure. Sustainable Airport Master Plan and Current Growth: Confluence of Long-term and Immediate Needs The fast growth noted above (even as it slows over the next couple years) indicates that, even after adding eight gates at the North Satellite, Sea-Tac will still be in need of additional gate capacity. The evolving master plan has identified the likely location of those gates but it will take close to a decade to build the permanent facilities. To meet the increased airline activity in the meantime, the airport must provide off-gate aircraft parking positions at which airlines will enplane and deplane passengers. Current estimates that in 2021 even after we have added eight new gates at the North Satellite the airport may need as many as 13 remote aircraft parking positions to handle peak hour operational needs. The preferable approach to this unfortunate need would be to have a temporary remote "terminal" or hold rooms to which departing passengers could be bused and from which they would proceed to their aircraft. There is more space for this remote activity to the north of the North Satellite, and it appears that a former cargo building (now under Port control) would be the best location for such a temporary remote terminal. A cross-functional team is now evaluating options and we anticipate briefings to and a request for authorization of the Commission later in 2015. The first several years of the 2016-2020 business plan period will involve considerable work to provide these "bridging" facilities and to reduce to the degree possible the negative customer service implications of keeping up with the extraordinary current growth. 4 | P a g e 2016 Aviation Business Plan The evolving Sustainable Airport Master Plan (SAMP) has identified the need for a new North gate complex. Due to limited airfield accessible space, the cargo and commercial activities now in the footprint of these future gates will need to be moved. This will potentially drive the need to develop the South Airport Service Area (SASA). Staff is examining ways to put off the need for SASA until it is necessary. In addition, with the early 2016 identification of preferred alternative of SAMP, detailed planning and definition of near-term projects will get underway in 2016, so that the projects can proceed to design as early as possible. In all likelihood the airport capital program will not ramp down after the completion of the current project but, in fact, ramp up after 2020. While the bulk of the spending will be outside of the time frame of this business plan, it will be critical to plan and design the initial elements very soon. This, of course, will require substantial work on the financial plan for these investments. Finally, as master planning team engages the community to ensure we understand their concerns and appropriately plan for mitigation of impacts, it will be critical that, in collaboration with these stakeholders, we identify economic development opportunities associated with the growth of the airport. The near-in communities are closest to the impacts of a major facility that benefits the entire region. It is incumbent on us to identify opportunities to promote economic benefit for these communities. Change in Security Threat at Federal Level Increased Threat As a result of recent events that have highlighted the vulnerability that and individual with an airport issued badge may introduce weapons or explosives onto an aircraft, the Transportation Security Administration (TSA) has issued two security directives related to criminal history background checks and ensuring that all airline employees go through security screening prior to travel. In addition, the TSA has provided guidance on on-going random searches of airport employees. More importantly, there are many voices suggesting that 100% employee screening be mandatory. The cost and operational changes associated with the recent new direction is relatively modest. However, should 100% employee screening be mandated, the airport would need to make significant new investments at doors between non-secure and secure parts of the terminal building and at gates along the fence-line. In addition, increased employee screening and any reduction in airfield or access points in the terminal (to reduce the capital and operating expenses associated with 100% screening) would significantly affect employee productivity and commerce. 5 | P a g e 2016 Aviation Business Plan VIII. CHALLENGES AND OPPORTUNITIES The four major drivers noted above create significant challenges and/or new capital or operating expenses in 2016 and the remainder of this business plan period. Following are several of the most significant challenges and opportunities for the upcoming five-year period: 1. Complete detailed planning and definition of the near-term projects identified in the Master Plan as early as possible in order to prepare for timely construction of critical path projects. 2. Design and construct the "immediate," interim remote aircraft loading/unloading facilities as well as procurement of additional buses and associated aircraft loading equipment to ensure the best customer service possible prior to completion of adequate gate capacity. 3. Update and/or refurbish critical customer service facilities to adequately meet the accelerated increase passenger throughput in the terminal (e.g., restrooms, communications infrastructure, etc.). 4. Accelerate the schedule for the baggage optimization project and add interim facilities development in light of the far greater baggage activity associated with high passenger growth. 5. Provide additional staffing to keep up with these increased passenger loads (e.g., janitorial). 6. Provide required (by the Transportation Security Administration) employee screening infrastructure and staffing in light of new and still-evolving federal directives. 7. Complete the Sustainable Airport Master Plan environmental review by Q4 2016. 8. Finalize and implement updated Port of Seattle / City of SeaTac Interlocal Agreement by February 2016. 9. Complete construction of the International Arrivals Facility in 2019 and the reconstruction of the North Satellite by 2020. 10. Complete Phase 2 of the South Satellite interior improvements in 2016 and begin design of the full refurbishment (similar to North Satellite project) in 2017. 11. Prepare in 2016 and finalize in 2017 the successor resolution or lease to the Signature Lease and Operation Agreement III. 12. Increase non-airline revenues to help fund capital program. 6 | P a g e 2016 Aviation Business Plan STRATEGIES AND OBJECTIVES The Aviation business plan is organized by strategy. Many of the Airport strategies directly support the implementation of the Century Agenda and the Port-wide strategies. In the following section, strategies and objectives that directly support the Century Agenda and the Port-wide strategies are highlighted. To avoid unnecessary duplication, the related details for performance measures, targets and actions for each are found immediately following within the Airport Strategies. Century Agenda Implementation Triple air cargo volume to 750,000 metric tons Strategy 1.2, Objective 9: Increase Air Cargo tonnage by 20% to a total of 364,000 metric tons in 2020, in line with the Century Agenda. Make Sea-Tac Airport the west coast "Gateway of Choice" for international travel Strategy 1.2, Objective 5: Commence operations from new International Arrivals Facility (IAF) by December 31, 2019. Double the number of international flights and destinations Strategy 1.2, Objective 10: Add four new international airline routes by 2019. Meet the region's air transportation needs at Sea-Tac Airport for the next 25 years Strategy 1.2, Objective 2: Complete the Sustainable Airport Master Plan (SAMP) to meet the needs of our tenants, passengers and regional economy for the next 20 years. Strategy 1.2, Objective 6: Complete all NorthSTAR program improvements by Q2 2020. Strategy 1.2, Objective 7: Identify and plan for all necessary long-term refurbishments in the South Satellite. Strategy 1.2, Objective 8: Increase productivity of existing terminal facilities. Strategy 1.2, Objective 11: Renew aging landside infrastructure. Strategy 1.2, Objective 13: Provide an efficient and updated baggage system that incorporates new technology and efficient conveyor systems necessary to improve system performance and allow for future expandability to 66 MAP. Increase the proportion of funds spent by the Port with qualified small business firms on construction, goods and services to 25% of the eligible dollars spent Strategy 7, Objective 4: Implement, administer and monitor Aviation Division programs that support Port-wide workforce development strategies and Commission Quality Jobs policies. Increase workforce training, job and business opportunities for local communities in maritime, trade, travel and logistics Strategy 7, Objective 5: Contribute to Port-wide small business goals by facilitating access to Aviation Division opportunities for local businesses. 7 | P a g e 2016 Aviation Business Plan Meet all increased energy needs through conservation and renewable sources Strategy 4, Objective 4: Implement conservation practices that will reduce natural gas usage and enable Airport to meet all future electricity load growth (2010 baseline) through conservation and renewable energy. Meet or exceed agency requirement for storm water leaving Port owned or operated facilities Strategy 3, Objective 6: Water Quality: Contribute to the restoration of Puget Sound and local receiving waters by providing water quality treatment, flow control, and using green stormwater infrastructure (where feasible) for airport industrial stormwater. Reduce air pollutants and carbon emissions Strategy 3, Objective 2: Air Quality and Climate Change: 1) Reduce airport owned and controlled greenhouse gas emissions by 15% below 2005 levels by 2020 and 50% by 2035; 2) Reduce aircraft-related greenhouse gas emissions by 25% below 2005 levels by 2035; 3) Increase the percentage of passengers accessing the airport via environmentallypreferred modes of transportation from 60% in 2014 to 70% in 2020; and 4) Reduce air pollutant emissions by 50% from 2005 levels by 2037. Port-Wide Strategy Implementation Consistently Live by our Values The Port's values guide how we go about our daily work throughout the aviation division. The Airport strategies aligned with these values will be updated and refined based on the Port-wide strategies that are under development. Manage our Finances Responsibly Managing our finances responsibly is a necessary foundation for all of the Airport strategies and the successful implementation of the Century Agenda. The Airport strategies that support this include: Strategy 4, Objective 1: Maintain passenger airline cost per enplaned passenger (CPE) and forecasted CPE within the middle third of peer airports (list of 22 airports focusing on large hubs and Western U.S. airports) through 2020. Strategy 4, Objective 6: Manage financial activity to achieve targeted metrics. Strategy 5.0: Maximize non-aeronautical net operating income (NOI) consistent with current contracts, appropriate use of airport properties and market demand. Exceed Customer Expectations Strategy 2.0: Become one of the top customer service airports in North America. Strategy 2.0, Objective 2: Achieve Top 5 ranking among 25 selected North American peers in 2020 ACI Airport Service Quality (ASQ) survey. 8 | P a g e 2016 Aviation Business Plan Airport Strategies and Objectives: Strategies and objectives that directly support the Century Agenda objectives are designated with "CA" at the end. Those that directly support the Port-wide strategic objectives are designated with "PS". Strategy 1.1: Operate an excellent international airport by ensuring safe and secure operations. Objective 1: Improve overall safety of aircraft and vehicular movement measured by an increase in a composite annual score of 100 possible points, ranking runway incursions, wildlife strikes, taxi-lane and apron area surface incidents and Part 139 discrepancies. Background: Aviation safety is the preeminent expectation of our airborne society. Due to the inherent nature and complexity of the airfield operating environment, it is appropriate to focus on the minimization of risk where aircraft interface with airport facilities, wildlife, vehicles, and personnel. In 2014, Sea-Tac joined Airport Excellence in Safety (APEX), the global airport safety cooperative of Airports Council International-World to glean the resources of other international airports around the globe in sharing best management practices. In 2015, the FAA is expected to adopt International Civil Aviation Organization (ICAO) guidelines for the holistic management of airfield safety as Safety Management System (SMS) regulatory requirements. Objective 1: Improve overall safety of aircraft and vehicular movement measured by an increase in a composite annual score of 100 possible points, ranking runway incursions, wildlife strikes, taxi-lane and apron area surface incidents and Part 139 discrepancies. Performance Measure Performance Target Actions Annual improvement in Reduce runway Complete redesigned intersection at individual components of incursions to 1.3 per Runway 16L/34R and Taxiways H the composite score 100,000 aircraft and J by Q4 2016 during 16C/34C operations in 2016. reconstruction project Install thermoplastic painted holding 2012 baseline:1/100,000 position markings at 19 intersections 2013: 2.25/100,000 by Q3 2016. 2014: 1.47/100,000 o CIP 800406, Budget TBD 9 | P a g e 2016 Aviation Business Plan Objective 1: Improve overall safety of aircraft and vehicular movement measured by an increase in a composite annual score of 100 possible points, ranking runway incursions, wildlife strikes, taxi-lane and apron area surface incidents and Part 139 discrepancies. Performance Measure Performance Target Actions Reduce Wildlife Strikes Increase raptor relocation activities from to 20 per 100,000 aircraft 30 to 90 annually 2016-2020 utilizing operations 2016-2019. existing operating expense budget Upgrade radar sensors to extend 2012 baseline:25/100,000 avian radar coverage of the airfield 2013:22/100,000 by Q4 2017. 2014:18/100,000 o Tri-party funding from FAA, Southern Illinois University and SeaTac for $192,000 each. New expense funds of $96,000 required for years 2016 and 2017. Evaluate integration of Avian Radar and Foreign Object Debris radar systems to include surface detection coverage by Q2 2016 utilizing existing staff resources Evaluate ability to negotiate agreements with local jurisdictions and cell-tower owners within 5-miles of SEA to prevent nesting of ospreys and eagles on such structures. Existing operational budget. Analyze historical avian radar data for bird trend distributions by Q4 2017 o Operating expense budget Reduce Non-movement Amend Rules and Regulations, area surface incidents to Ground Service Provider Licensing 24 per 100,000 aircraft Agreements by Q1 2016 based on operations in 2016. 2015 review of non-movement area risk profile. 2012 baseline:25/100,000 Expanded drivers training at time of 2013: 33/100,000 badge renewal by Q1 2016. 2014: 26/100,000 Integrate Airfield Incident Reporting System (AIRS) with Safety Management System by Q4 2016. Automate ramp insurance validation at airfield access points utilizing new ID Access badging software to ensure only insured vehicle operators are allowed access to Airport Operations 10 | P a g e 2016 Aviation Business Plan Objective 1: Improve overall safety of aircraft and vehicular movement measured by an increase in a composite annual score of 100 possible points, ranking runway incursions, wildlife strikes, taxi-lane and apron area surface incidents and Part 139 discrepancies. Performance Measure Performance Target Actions Area by Q1 2016. o CIP 800066 Install automated gate Complete Gates A5, D10, D11, for a docking systems and gate cost of $3M by Q4 2017 operating system at o New capital funds specific gates. Incur zero FAA Airport Conduct monthly special inspections Certification based on specific FAA areas of focus discrepancies during beginning Q1 2016. annual inspections. o existing staff resources Remove all trees newly identified as 2012 baseline: 0 obstructions to navigation and safety 2013: 2 of flight beginning by Q2 2016 2014: 3 through 2018. 2015: 2 o New $1.6M operating expense budget Comply with all Implement all Safety Actions to be defined following anticipated FAA Safety Management System anticipated issuance of FAA Management System (SMS) regulatory SMS regulations in June 2015 with (SMS) regulations requirements within implementation in 2016. published FAA timeline Foreign Object Debris Reduce FOD incidents. Install state of the art FOD camera (FOD) Incidents system integral with 16C/34C. Objective 2: Increase overall runway availability during snow events. Background: Creation of a dedicated removal team for 16R/34L and ongoing delivery of additional equipment allows for increased runway availability. Under the new scenario, two separate snow removal teams are deployed, operating an enlarged fleet of new technology equipment. Deployment of two distinct teams, as requested by Alaska Airlines, requires additional equipment and the incremental replacement of the original fleet purchased 25 years ago in 1989. Objective 2: Increase overall runway availability during snow events. Performance Measure Performance Target Actions Runway availability Two of the three runways Procure 4 combination plow/ brooms remain open during snow by Q4 2016 events representative of o $2.5M under new CIP typical average occurrence 11 | P a g e 2016 Aviation Business Plan Objective 3: Increase airline departure rate during snow events through centralized deicing facilities. Background: Significant savings and efficiencies can be achieved through centralized procurement and distribution of deicing glycol by the existing Sea-Tac Fuels consortium. Overall airfield efficiencies and increased flight completion factors can be achieved through the development of centralized deicing pads. Requested by Alaska Airlines and Delta Air Lines. Objective 3: Increase airline departure rate during snow events through centralized deicing facilities. Performance Measure Performance Target Actions FAA Hourly Aircraft Increase departure rate Complete work plan and schedule for Departure Rate during snow events from consolidation of deicing fluid and 2012 baseline of 14 per aircraft application by Q1 2016. hour to 18 per hour while Establish location for centralized providing an glycol storage and distribution facility uninterrupted supply of following Master Plan siting decision glycol to all Sea-Tac Q1 2016. airlines. Negotiate agreement for development and land lease for consolidated 2012 baseline: 14/hour facility with existing Sea-Tac Fuels 2013: 14/hour airline consortium by Q3 2016. 2014: 14/hour o existing staff and Master Plan resources Complete preliminary design of centralized common use deicing pads by Q3 2017. o New CIP and Budget TBD Objective 4: Ensure uninterrupted supply of jet fuel to Sea-Tac fuel farm from existing Olympic Pipeline Renton terminal through creation of redundant feed source. Background: Sea-Tac is the largest commercial hub airport in the United States without a redundant feed source for jet fuel. Sea-Tac facilitates the delivery of approximately 1.1 Million gallons of jet fuel per day to airline customers and maintains an average inventory of 9 days' supply. Preliminary analysis indicates that a catastrophic failure, or interruption of the existing system, could not be supplied through over-the-road tankering. 12 | P a g e 2016 Aviation Business Plan Objective 4: Ensure uninterrupted supply of jet fuel to Sea-Tac fuel farm from existing Olympic Pipeline Renton terminal through creation of redundant feed source. Performance Measure Performance Target Actions Jet Fuel Availability 100% redundancy in fuel Conduct analysis during Master Plan supply availability to determine potential risks and alternative delivery methods by Q1 2016. Lower floating lids on fuel farm tanks to increase on-hand inventory by 1.5 days' supply, by Q1 2016. Add three truck offload positions by Q4 2016. Objective 5: Mitigate risk of security breaches and associated downtime. Background Approach : Sea -Tac has maintained an essentially flawless record with TSA compliance and addressing security anomalie s. Projected airport growth and rapid technology advancements drive the need for c ontinuous analysis of how to utilize available technology to maintain compliance. Objective 5 : Mitigate risk of security breaches and associated downtime. Performance Objective Performance Target Actions Reliable, transparent, Standardized system of Identify all components related to user-friendly security security technologies airport security system and set system standards for new construction (CCTV, alarms, sensors, locks, etc.) Q4 2016 Exit lane controls All five main passenger Seek TSA/Congressional funding for exits have exit technology automated Exit Lane Breach Control that provide proven, technology continuous monitoring, Modify prototype exit with third door detection and control by Q4 2015 (2015-2018) through TSA funding TSA redeploy staff stationed at exits to screening functions 13 | P a g e 2016 Aviation Business Plan Objective 6: Improve overall readiness of the Port to respond to and recover from an emergency, disaster, and any event that would substantially disrupt business/operational continuity. Background: Any significant disruption to the Airport's routine functions can have a substantial negative impact on the Port and region. The Port must be able to respond to and recover from emergencies effectively and efficiently. Objective 6: Improve overall readiness of the Port to respond to and recover from an emergency, disaster, and any event that would substantially disrupt business/operational continuity. Performance Objective Performance Target Actions Develop new Port-wide Analyze common Conduct assessment of common COOP plan that infrastructure risks that infrastructure needs Q1 2016 addresses the most could affect COOPs (e.g. Work with key stakeholders to build critical functions required ICT, Communications, common infrastructure COOP plan across departments and Power) (e.g. ICT, Maintenance) Q2 2016 refine department level plans Assess all department Review all existing COOP plans Q3 COOP plans. 2016 Ensure plans address Provide guidance on needed potential risks to their corrections Q4 2016 assumptions (assume VPN works permitting work from home) Agency emergency plans Emergency Preparedness Assess each plan for currency of accurately define Port and Response Plans are content, applicability and consistency and staff actions and identified, cataloged and of information. Q4 2015 capabilities deconflicted Revise and adopt plans Q2 2016 Port staff are prepared to Port staff readiness is Schedule and manage personal support emergencies as assessed and training and preparedness events needed exercising activities are Deliver instruction that continually provided builds ECC staff knowledge and skills. Q4 2016 Execute tabletop exercises focused on Implement IEMC response, COOP, and recovery that recommendations for involve field, ECC and Policy developing Policy Roomcomponents. Starting Q2 2015 Level techniques for leveraging POS Executive's abilities 14 | P a g e 2016 Aviation Business Plan Objective 6: Improve overall readiness of the Port to respond to and recover from an emergency, disaster, and any event that would substantially disrupt business/operational continuity. Performance Objective Performance Target Actions during an emergency Port emergency radio Emergency radio system Monitor direction and progress of system is fully functions for Port region wide radio upgrade program operational emergency responders led by King County. 2016 and is interoperable for Determine what elements of Port responders from adjacent radio system must be upgraded to mutual aid jurisdictions maintain coverage and operability across region to define Port project scope and cost. Q3 2017 o Budget TBD Request authorization to upgrade Port radio system (anticipate handheld radios and tower antennas). Q1 2018 o Budget TBD Strategy 1.2: Operate a world -class international airport by anticipating and meeting needs of tenants, passengers, and the region's economy. Objective 1: Plan, design and construct interim facilities to accommodate exceptional growth. Background: Sea- Tac was the fastest -growing large hub in the United States in 2014 with passenger traffic increasing 7.7%. Through the first quarter of 2015, SEA continued to experience exceptional growth as passenger enplanements measured 13% year over year. International traffic grew at 16.2% and domestic traffic 12.7%. This growth equates to a million additional passengers in the first quarter of 2015. Annual growth for 2015 is conservatively anticipated to be approximately 10%. Indications are 2016 may also see high growth rates. Given this rapid rate of expansion, Sea -Tac must expeditiously plan, design, and construct interim facilities to accommodate customer needs until current capital projects and longer-term Sustainable Master Plan development can be delivered. Objective 1: Plan, design, and construct interim facilities to accommodate exceptional growth. Performance Measure Performance Target Actions Available aircraft gates Convert 2 wide body Aircraft configuration and design in service aircraft parking positions completed Q1 2016. Construction to alternately completed Q4 2017. accommodate 3-5 o New CIP, $12.5M narrow-body aircraft positions during periods of non-peak international 15 | P a g e 2016 Aviation Business Plan Objective 1: Plan, design, and construct interim facilities to accommodate exceptional growth. Performance Measure Performance Target Actions activity at South Satellite by 2017. Wide-body departures Convert C15 to a wide-body gate by from Concourse C. Q2 2017. Complete ramp marking design and aircraft fit test by Q4 2016. Routine daily aircraft Provide associated ramp Concourse B hold-room design Q3 hardstand operations level hold-room space at 2016. Concourse B by Q2 Construction complete Q2 2017 2017. o $4.5M. CIP 80076 Provide ramp level hold- Concourse C hold-room design 2016. room space in Concourse o Budget and CIP TBD C by 2018 Additional remote Implement short-midterm solutions as terminal locations identified by RS&H study and identified. SAMP. Contract new IDIQ for gate planning layout with new operating expense funds. Procure additional over the ramp bussing and related equipment based on analysis completed in 2015. o New CIP, Budget TBD, Q4 2016. Identify additional operational costs associated with remote operations facilities, busses, and other equipment. o New CIP, Budget TBD, Q4 2016. Safe and efficient Wait times equal to or Procure additional busses by Q4 2016 passenger transportation, less than 5 minutes. based on 2015 analysis. Rental Car Facility/Main Terminal 16 | P a g e 2016 Aviation Business Plan Objective 2: Complete the Sustainable Airport Master Plan (SAMP) to meet the needs of our tenants, passengers and regional economy for the next 20 years. (CA) Background: The last airport master plan was completed in the mid-1990's. In order to appropriately plan future facility requirements and capital investments, the airport must update the aviation activity forecast, and articulate the 20-year master plan for the airport facilities. The SAMP will integrate the planning for the region's needs at the airport along with the environmental and sustainability goals articulated by the Commission in the Century Agenda. Objective 2: Complete the Sustainable Airport Master Plan (SAMP) to meet the needs of our tenants, passengers and regional economy for the next 20 years. (CA) Performance Measure Performance Target Actions Sustainable Airport By 2016 future airport Complete the Sustainable Airport Master Plan facilities to accommodate Master Plan by 2015 forecasted 20 year growth Complete Draft Airport Layout Plan are planned, and near (ALP)/Airport Geographical term (5 year) facilities are Information Systems (AGIS) by approved for construction March, 2016 Complete Environmental review and FAA approval of the ALP by Q1, 2017 Prepare advanced planning documents for detailed planning needed to define and efficiently implement SAMP: Terminal, Gates, Landside, Airfield Capacity, Airline, Airline Support, Cargo, and SASA o Expense, Capital, Schedule TBD Objective 3: Quantify scale and routing of all necessary major utilities and services to support new interim facilities, SAMP permanent facilities and existing terminal as passenger enplanements rapidly grow, and develop implementation plan Background: The Airport SAMP will identify additional separate concourses that cannot operate without major utilities and services such as electrical power, sewer, people mover capacity, etc. Utilities, by their nature, must be planned and installed prior to the construction of the added concourses and other necessary airport functional buildings, because they are often installed underneath such facilities. Therefore, it is necessary advance a program to first identify utilities and services, and second to develop the implementation plan to keep ahead of the rapid expansion of concourses and other buildings. 17 | P a g e 2016 Aviation Business Plan Objective 3: Quantify scale and routing of all necessary major utilities and services to support new interim facilities, SAMP permanent facilities and existing terminal as passenger enplanements rapidly grow; and develop implementation plan Performance Measure Performance Target Actions Corridors could house Corridors are identified Identify, validate, and size, as baggage, passenger by Q1 2016. appropriate, corridors between main pathways (moving walks, terminal and future interim and APM, etc.) and various permanent concourses. utilities - necessary underground/aerial corridors are identified in conjunction with SAMP and interim facilities. Necessary utilities are Utility needs are Consider various utilities and services identified, and validated in a report, for new facilities and existing terminal implementation plan is procurement plan and buildings(*) such as: complete studies are completed to Electrical power kick off phased design Communication cabling work by Q3 2016. Natural gas Water systems Hot water steam systems Cold (chilled) water systems Sanitary Sewer systems Storm water systems Baggage mainline delivery between terminals IWS systems Jet Fuel systems Utilidors Emergency power Grease System capacity for Terminal* as part of sewer system STS train capacity, consider APM option for SAMP capacity* Load Dock Capacity* Garbage and recycle flow capacity* Emergency Exiting flows* Etc. Generate report: Prepare full listing and scenario mapping to match permanent SAMP facilities. Prepare accelerated in-house write- 18 | P a g e 2016 Aviation Business Plan Objective 3: Quantify scale and routing of all necessary major utilities and services to support new interim facilities, SAMP permanent facilities and existing terminal as passenger enplanements rapidly grow; and develop implementation plan Performance Measure Performance Target Actions up for each utility to serve interim facilities. Schedule: Complete Q4 2015 for interim facilities; and Q2 2017 for permanent facilities o Budget TBD Hire outside services for the above: Generate scope of work for consultant contract to study and prepare report that enables driving forward a follow-up design. Develop procurement plan - Q1, 2016 Procure Engineering/Architect firm(s) select, negotiate, and contract work Q2, 2016. Complete engineering study Q2 2017 o Budget TBD Objective 4: Facilitate/accommodate growth in international operations until new IAF is completed. (CA) Background: Short-term improvements in the existing FIS and South Satellite (SSAT) are necessary to meet passenger demands prior to the opening of the new IAF. Strong growth in international flights has led to increasing numbers of arriving passengers held on-board aircraft or held in the International Corridor. Objective 4: Facilitate/accommodate growth in international operations until new IAF is completed. (CA) Performance Measure Performance Target Actions Facility and operational By 2016, progressively Fully implement Mobile Passport improvements necessary reduce monthly passenger Control through pre-departure to reduce processing time hold on board aircraft and promotion and procurement of processing time as additional MPC scanners utilizing compared year over year new expense funds. $TBD through: Expedite secondary Consolidate FIS Agriculture and baggage inspection Secondary baggage inspection and restructure exit control by Q2 2016 with o New CIP. Budget TBD Establish FIS processing Install iBeacon technology 19 | P a g e 2016 Aviation Business Plan Objective 4: Facilitate/accommodate growth in international operations until new IAF is completed. (CA) Performance Measure Performance Target Actions time metrics throughout FIS to capture processing time metrics from deplaning through recheck and security screening, by Q4 2016. o Budget TBD Maintain customer Increase 2016 operating budget for service levels as traffic Centralized International Support increases Services (CISS) contract.Q1 2016. o Budget TBD Increase capacity and Replace 45 year old cabinetry with improve airline efficiency new casework, scales, dynamic at international to displays while increasing domestic connecting workstation positions from six to passenger recheck eight. counters. Objective 5: Commence operations from new International Arrivals Facility (IAF) by December 31, 2019. (CA) Background: The Airport has seen unprecedented growth in its international services since 2007. Between 2007 and 2014, passenger volume on long-haul international routes grew 75.9%, as compared to domestic routes, which grew 17.8%. By summer 2015, Sea-Tac will have had a net gain of 11 long-haul international services since 2007, seven since 2011. Delta Air Lines made Sea-Tac its primary pacific gateway and has rapidly expanded its hub in Seattle. From just two intercontinental services on its legacy carrier Northwest Airlines in 2008, Delta will have ten daily long-haul international flights in summer 2015. Objective 5: Commence operations within a new International Arrivals Facility (IAF) by December 31, 2019 (to be confirmed). (CA) Performance Measure Performance Target Actions IAF designed and Increase from 12 to Incorporate final performance metrics constructed to meet 18 FIS- accessible as defined with airlines in 2015. established program gates utilizing Complete selection of Design-Build objectives existing Concourse team by Q3 2015 A aircraft parking NEPA/SEPA environmental review positions. and permitting by Q1 2015 Hourly passenger Design/Build Construction begins processing increased 2016 from 1200 to 1900. New facility opens 2019 2 additional claim carousels Elimination of 20 | P a g e 2016 Aviation Business Plan Objective 5: Commence operations within a new International Arrivals Facility (IAF) by December 31, 2019 (to be confirmed). (CA) Performance Measure Performance Target Actions passenger holds Elimination of aircraft holds Elimination of hardstand operations Elimination of double baggage claim. Minimum Connect Time (MCT) reduced from 90 to 75 minutes Average passenger wait time for Immigrations inspection reduced from 20 to 10 minutes. Maximum passenger wait time for processing time reduced from 70 to 50 minutes. ASQ scores improved. Objective 6: Complete all NorthSTAR program improvements by Q2 2020. (CA) Background: In 2013, the Port completed the realignment of multiple airlines to allow Alaska Airlines to centralize its operations on the North Satellite. The North Satellite element of the NorthSTAR program is currently at 60% design, incorporating current and evolving design characteristics to meet passenger experience needs. Objective 6: Complete all NorthSTAR program improvements by Q2 2020. (CA) Performance Measure Performance Target Actions Consolidation, Complete NorthSTAR Complete 100% design for optimization and program by 2020, renovation of North STS Lobbies expansion of AAG including all North Project by Q1 2016. operations on Concourse Satellite improvements o CIP 800556 $0.3M C and N with associated (eight additional jet Complete 100% design for capital improvements to bridge-equipped gates, renovation of North Satellite by meet program milestones additional concessions, 2016 adequate hold rooms, 21 | P a g e 2016 Aviation Business Plan Objective 6: Complete all NorthSTAR program improvements by Q2 2020. (CA) Performance Measure Performance Target Actions circulation, baggage o Budget $23.4M system capability, and a Complete STS Lobby construction by new Alaska Board Room) Q1 2020 to meet passenger o 1.2M demand at a level of Complete North Satellite construction service to exceed IATA by Q1 2020 level C o $310M + $5M RMM (Expense) Zone 7 Ticketing Lobby IATA Level of Service C Integrate Sustainable Master Plan and Checkpoint and related long-term considerations efficiency. into Project Definition/Scope Q1 2016. 100% design Q1 2017 o CIP 800545 $2.6M Construction complete Q3 2018 o $21M Objective 7: Identify and plan for all necessary long -term refurbishments in the South Satellite. (CA) Background: The North and South Satellites are the same age, and the South needs significant renovations similar to what the North is undergoing. The South Satellite is a 45-year-old aging facility that is heavily used and will continue to be used in the future as international and domestic service grows. The facility will need renovations of aging infrastructure, and concourse improvements (hold-rooms, concessions, , restrooms, day lighted ceilings, etc.) to improve it to be on a par with other concourses. Analysis is needed to determine the necessary improvements to interior concourse spaces, vertical circulation, restrooms, structural/seismic strength, airconditioning , building size, etc. Note: nearer-term aesthetic improvements such as carpeting, wall coverings, door panels, signage, furniture, possibly window panels, etc. are included in Aviation's customer service strategy action list. Objective 7: Identify and plan for all necessary long-term refurbishments in the South Satellite. (CA) Performance Measure Performance Target Actions South Satellite is Final design of project Analysis of SSAT renovations renovated begins in 2017 prepared by end of Q1 2016 Retain consultant to prepare floor plans to enlarge satellite concessions and hold rooms and plan gating adjustments o Budget ~$150K expense o Budget ~$100K capital Prepare project scoping document cost estimate, schedule, etc. for subsequent capital project(s) by Q3 22 | P a g e 2016 Aviation Business Plan Objective 7: Identify and plan for all necessary long-term refurbishments in the South Satellite. (CA) Performance Measure Performance Target Actions 2016 Submit for budgetary and commission approval to request staff initiate final design by Q1 2017 Create a capital project for Structural Column and Beam Analysis and Upgrade design in Q4 2015 o Budget TBD Objective 8 : Increase productivity of existing terminal facilities. (CA) Background: In 2009, the Airport launched the Terminal Development Strategy (TDS) initiative to develop a unified airline/airport approach to align and streamline terminal facility planning in anticipation of future needs with the goal of reducing costs through use of technology and higher facility throughput. Objective 8 : Increase productivity of existing terminal facilities. (CA) Performance Measure Performance Target Actions Accommodate 5-year Year on year increases in Finalize implementation plan for use demand forecast of up to self-service passenger of new technology and processes for: 46 million passengers check-in and baggage Passenger check-in within the existing drop. Baggage self-tag/drop. terminal envelope through additional gates, passenger self-service, technology and checkpoint expansions Efficient TSA approved 25 percent of passengers Analyze and implement pilot self bag-tag and self bag- use by Q4 2020. program Q2 2016 using mobile hand drop locations available scanning device with airline in ticketing personnel or contracted labor. o ICT Small Cap project $250K. Pending TSA approval and successful implementation of pilot, install fixed Common self-bag drop in ticketing lobby location Q3 2020. o New CIP $2.5M o CIP 800545 Install Common self-bag-drop in Zone 7 or other strategic location by Q4 2020. Increase Baggage make- Create 2 additional SSAT Reverse direction of existing C25 up capacity to make-up carousels within baggage system for conveying local 23 | P a g e 2016 Aviation Business Plan Objective 8: Increase productivity of existing terminal facilities. (CA) Performance Measure Performance Target Actions accommodate increasing existing footprint. outbound baggage from the main airline growth terminal. o New CIP Estimated $1M by Q3 2016. Checkpoints adequate for Checkpoint 5 expanded by Complete Checkpoint 5 Expansion as growing passenger Q4 2017 part of main terminal improvements demand of NorthSTAR program o CIP 800545 Office spaces for airlines, Adequate supply of vacant Identify spaces within terminal to tenants, and staff space with full utility accommodate growing tenants and service is ready and initiate design in Q2 2016 available for airline or o Budget TBD other tenant use To allow rapid build out, begin early asbestos remediation in Q2 2016 o Budget TBD Objective 9: Increase Air Cargo tonnage by 20% to a total of 364,000 metric tons in 2020, in line with the Century Agenda. (CA) Background: Meeting the 2011 Port Commission Century Agenda 25-year goal for air cargo tonnage growth requires an approximately 3.8% compound annual growth rate (CAGR) from 2012 to 2036. A three-part strategy will achieve the 2016-2020 portion of overall goal and position the business to meet the 25-year Century Agenda goal: Additional air service growth to expand air cargo lift capacity Gain ownership control, modernize, and expand on-Airport facilities Develop off-Airport land for warehouse and logistics support facilities Objective 9: Increase Air Cargo tonnage by 20% to a total of 395,000 metric tons in 2020, in line with the Century Agenda. (CA) Performance Measure Performance Target Actions International cargo Increase international Dependent on airfield capacity: airlines serving Sea-Tac dedicated freighter Attract one new international air airlines from five to eight cargo freighter customer in 2016 by 2020 Attract 2 additional services by 2020 Availability of leasable Q4 2016 Identify and lease all available Port-owned on-Airport airport-controlled airfield cargo cargo warehousing warehouse facilities sufficient to meet facilities demand consistent with Master Plan. Q4 2020 Develop new airside cargo building capacity sufficient to accommodate market growth and the relocation 24 | P a g e 2016 Aviation Business Plan Objective 9: Increase Air Cargo tonnage by 20% to a total of 395,000 metric tons in 2020, in line with the Century Agenda. (CA) Performance Measure Performance Target Actions needs of existing facilities, consistent with master plan. Availability of leasable Refer to Strategic Refer to Strategic Objective 5 - off-Airport warehouse Objective 5, Maximize Maximize non-aeronautical net and logistics support non-aeronautical net operating income. facilities operating income. Objective 10: Add four new international airline routes by 2019. (CA) Background : Despite the Puget Sound region's strong economic and population growth, Seattle remains significantly underserved internationally as compared to other West Coast airports. With economic growth in Asia far outpacing that of the mature economies of North America and Europe, U.S. carriers are increasingly shifting their attention to transpacific routes. Seattle, as the closest major U.S. city to Asia, has benefitted and will co ntinue to benefit from these growth markets. While these services are of great importance to the local economy, they also signal a shift in the role of Sea- Tac towards being a key international gateway for connecting passengers. Objective 10: Add four n ew international airline routes by 2019. (CA) Performance Measure Performance Target Actions International long-haul Achieve net increase of Cultivate strong relationships with passenger routes. four long-haul strategically identified airlines international routes to Work closely with Sea-Tac's largest complement 20 routes international carrier, Delta, to flown in 2015. support its route development Target key connecting markets to increase share of connecting traffic Promote Small Community Air Service Development Program efforts in contributing to state-wide economic and tourism expansion. Objective 11: Renew aging landside infrastructure. (CA) Background: These projects are necessitated by aging infrastructure, an overall increase in ground transportation activity and seismic requirements associated with the service tunnel. Objective 11: Renew aging landside infrastructure. (CA) Performance Measure Performance Target Actions Availability of critical Extend existing facilities Complete South 160th Street Ground ground transportation life cycle by 20 years Transportation Lot infrastructure o CIP 102112, Budget TBD, by TBD 25 | P a g e 2016 Aviation Business Plan Objective 11: Renew aging landside infrastructure. (CA) Performance Measure Performance Target Actions Achieve Federal Highway Complete Service Tunnel renewal Administration Seismic and replacement project Retrofitting Requirements o CIP 102112, $28M, Q3 2018 Objective 12: Make strategic Airport facility improvements to support efficient cruise operations and ensure a positive customer experience. Background: The Port's cruise ship business sector continues to expand, requiring associated investment in new facilities at Sea-Tac to complement Seaport operations and facilities. At the same time, existing airport facilities are increasingly capacity-constrained, minimizing the opportunity for alternative use in support of the cruse sector. Relocating cruise-specific operations to an off-site location has the opportunity to both improve the cruise passenger experience and remove peak passenger and baggage processing demands on terminal facilities. Objective 12: Ma ke strategic Airport facility improvements to support efficient cruise operations and ensure a positive customer experience. Performance Measure Performance Target Actions Percent of passengers and 100% of eligible cruise Complete cruise business strategic baggage processing passengers and baggage plan by Q1 2016. facilitated independently facilitation conducted Complete evaluation of off-site from main terminal independently from main locations in consideration of available airport facilities. terminal airport facilities. resources and future needs identified through the Sustainable Airport Master Plan, passenger and cargo forecasts by Q1 2016. Seek cruise ship commitment and business investment in on-ship baggage-tagging for direct delivery to airport and final destination Objective 13: Provide an efficient and updated baggage system that incorporates new technology and efficient conveyor systems necessary to improve system performance and allow for future expandability to 66 MAP. (CA) Background: The existing outbound baggage system is comprised of six separate systems that will soon reach the end of their estimated life span. The Airport has partnered with the Transportation Security Administration (TSA), which plans to replace their explosive detection and bag search systems, to create a jointly optimized system. Building a single new system in phases will enable the TSA to cost effectively replace their systems, and enable the Airport to reconfigure the whole conveyance system as a single unit that will be expandable in the future to support the eventual airport maximum passenger demand. Objective 13: Provide an efficient and updated baggage system that incorporates new technology and efficient conveyor systems necessary to improve system performance and allow 26 | P a g e 2016 Aviation Business Plan for future expandability to 66 MAP. (CA) Performance Measure Performance Target Actions Phased optimization Meet TSA security Design Complete Q1 2016 system reconstruction requirements (TSA Accelerate phased construction design standards), airline completions from current 2021 to an approvals of MII ballots, earlier completion if possible within energy savings per lineal federal grant and design standard foot conveyor, and constraints system expandability via future projects for capacity of 66 million annual passengers Completed interim Interim projects support Determine necessary improvement improvements growing airline needs projects annually with airline input. with as minimal impact to Identify and implement interim airline operations as additional operational and capital possible capacity projects to accommodate near-term projected baggage loads o CIP and Budget TBD Improve capacity of Install TSA CTX bag scanner in C60 aging TSA scanning system to increase capacity by Q1 systems to keep pace with 2016 traveler growth o CIP and Budget TBD Objective 14: Provide emergency-back-up electrical power. Background: Operations at the Airport are dependent upon continuous electrical service. Without continuous electricity, many of the Airport vital systems will fail and stop operations including power to gated aircraft, baggage screening/delivery systems, jet-bridge movements, emergency lighting, etc. Objective 14: Provide emergency-back-up electrical power. Performance Measure Performance Target Actions Continuous electrical Re-establishment of Receive Commission authorization service availability for the Airport electrical service for full design by end of Q3 2015 Airport Terminal within 1 hour after Complete Generator facility project disruption from the grid by Q3 2018 by Q3 2018 o CIP est. $40M Complete SCADA controls project by Q3 2017 and tie into generator facility by Q3 2018 o CIP est. $10M, TBD Upgrade North and South Main Substation to provide greater security 27 | P a g e 2016 Aviation Business Plan Objective 14: Provide emergency-back-up electrical power. Performance Measure Performance Target Actions against intrusion or damage per NERC recommendations by Q3 2017 o CIP estimate = $1M Rough order of Magnitude (ROM) Objective 15: Prepare a benefit/cost analysis for improvements to Minimum Connect Time (MCT). Background: Competition with other airports includes many variables, one of which is the Minimum Connect Time (MCT) which defines in industry publications and airline schedules the time necessary for baggage transfer, passenger movement from the arriving gate to the connecting departure gate as well as and immigration processing between international and domestic flights. As the Airport develops its master plan, designs baggage optimization, and initiates the IAF program; the time is right to set Airport and system-wide MCT targets. Objective 15: Prepare a benefit/cost analysis for improvements to Minimum Connect Time (MCT). Performance Measure Performance Target Actions MCT as published by the Lower minimum connect Incorporate MCT study results Official Airline Guide of time from current 90 completed in 2014 in design build airline scheduled flights minutes to 75 minutes process beginning in 2016 to achieve 75 minute airport-wide goal upon opening of IAF in 2019. Incorporate MCT study results in performance specifications of Baggage Optimization Program. Objective 15: Ensure the Airport's technological capacity and capability keeps pace with technological evolution so the airport can be flexible in providing valuable services to both business customers and travelers Background: Passengers are increasingly (over 88%) using multiple internet capable devices (phones, tablets, laptops) in the terminals. Airlines, concessionaires, and other tenants are using internet devices (phone alerts, cameras, point of sale tablets) for business use. Our airport's own use of technology is increasing (common use check in kiosks, flight information signs, baggage tracking). For the Airport to provide good service to our customers, we must keep up with growing technology use by investing in several areas: Expand behind the scenes infrastructure: o Provide gateway for internet providers, added fiber backbone, local area network and core switches, and plug-in connectivity at each airline and concession location o Expand Wi-Fi connectivity to enable travelers to easily connect through the behind the scenes infrastructure to the internet, while also providing additional video camera security to meet the needs of the TSA and the Airport 28 | P a g e 2016 Aviation Business Plan o Install an iBeacon network of transponders as the base system to provide indoor smartphone navigation and other value added services to travelers, businesses, and both airport operations and security iBeacon transponders utilize a unique numbered address that enables software applications to publish messages to near-by smart phone users. The messages can be very informative because of awareness of distance between each iBeacon and the smart-phone. Objective 15: Ensure the Airport's technological capacity and capability keeps pace with technological evolution so the airport can be flexible in providing valuable services to both business customers and travelers Performance Measure Performance Target Actions The airport can easily Tenant Procure, design, construct and select from among telecommunication configure an Internet gateway competitive internet carrier requests are facility with separate and secure providers, and in turn fulfilled via a secure space, protection and control of provide a tamper proof airport gateway facility power quality, environment controls and reliable suite of by 2017 and monitoring, fire protection and services to other safety measures. Q4 2017 concessionaires, airlines, o CIP TBD ~$1M and other tenants Increased capacity of the OPSLAN core switches Procure, design, install and airport's operations local and ancillary components configure the latest network core area network (OPSLAN) are upgraded by 2017 to switches and ancillary components. better support future Q4 2017 tenant and port projects o CIP TBD ~$3M and rapid passenger growth toward 66 MAP Data and communication Telecommunication Conduct a multi-year phased connectivity for airport requirements are procurement, design, construction tenants is standardized to standardized and 200 and installation of "tenant demarc" allow quick 'plug-in' and spaces converted to packages. Q1 2019 portability when needed. approved "tenant o CIP TBD ~$3M demarc" packages by 2019 Vacant airport spaces Conduct a multi-year phased contain "tenant demarc" procurement, design, construction, packages designed and and installation of "tenant demarc" installed in 50 spaces with associated demolition and prior to tenant occupancy removal of legacy cabling. Q3 2018 by 2018 o CIP TBD ~$2M Demolition and removal of legacy cable / wiring from 150 spaces completed by 2018 29 | P a g e 2016 Aviation Business Plan Objective 15: Ensure the Airport's technological capacity and capability keeps pace with technological evolution so the airport can be flexible in providing valuable services to both business customers and travelers Performance Measure Performance Target Actions Traveler and operational Travelers experience zero Complete Concourse C by Q1 2016 Wi-Fi infrastructure 'drops', and tenants and o CIP TBD ~$3M capacity with operating entities can Complete remaining concourses and expandability via future connect easily to new main terminal by Q4 2017 projects for 66 million cabling infrastructure by o CIP TBD annual passengers (MAP) 2017 and provide ramp Complete ramp Wi-Fi and security Wi-Fi & cameras by cameras by Q4 2018 2018 o CIP TBD Smartphone-based, Complete planning, Apple indoor aerial mapping. indoor navigation design, and installation o Q2 2016 infrastructure that meets airport-wide Google StreetView mapping. passenger demand for infrastructure by Q2 2017 o Q2 2016 mobile, self-service Procurement and implementation of airline travel Wi-Fi authentication site with advertising and location specific concessions information. Procurement by Q1 2016 and implementation by Q4 2016 o CIP TBD ~$0.5M Design and implementation of indoor navigation system based on low energy Bluetooth Low Energy iBeacons. Procurement byQ1 2016 and implementation by Q3 2016. o CIP TBD ~$0.5M Strategy 1.3: Operate a world-class international airport by managing airport assets to minimize long-term total cost of ownership. Objective 1: Create a new Airport Master Record As-built Drawing System. Background: The Port's existing record drawing system is a significant tool used to prepare for both renovating aging buildings (or portions thereof), and in maintaining over $4 billion of existing facilities (campus buildings) and utilities (heating, air conditioning, elevators and escalators, fire alarm systems, dispatch of emergency services, etc.) The inaccuracy of the current drawing system causes construction change orders, extends operational downtime, prevents rapid repairs when system failures occur, and requires designers to recreate background footprint drawings of the Airport project areas each time a new project begins. An improved record drawing system will enable future projects and business systems (e.g. GIS) to save costs in change orders, map utilities behind the walls to minimize utility and operational shutdowns, and save costs during design. 30 | P a g e 2016 Aviation Business Plan Objective 1: Create a new Airport Master Record As-built Drawing System. Performance Measure Performance Target Actions Reliable As-built Two to five percent fewer Identify which areas or systems to records/drawings building renovation as-built first based upon priority, change orders, and one identify computer station needs, and percent reduction in cost hire first technician Create office cube, purchase computer, and hire AutoCADD technician by Q3 2016. o Operating budget Objective 2: Complete initial comprehensive inventory of the condition of all physical assets across the Airport, continue periodic inspections to assess age and status/lifespan, and develop a system to facilitate forecasting of capital renewal projects and improve on-going maintenance. Background: A forward-looking list of necessary renovation projects will enable staff to forecast capital spending in future years. With recurring inspections and a good long-term forecast of renewal projects, staff can better predict funding needs and level the amount of work for the project management department. Without detailed asset information, an accurate future forecast of renovation is not possible. Objective 2: Complete initial comprehensive inventory of the condition of all physical assets across the Airport, continue periodic inspections to assess age and status/lifespan, and develop a system to facilitate forecasting of capital renewal projects and improve on-going maintenance. Performance Measure Performance Target Actions Comprehensive and Completed condition SSAT, Concourse A, Rental Car reliable asset inventory inventories Facility, Bus Maintenance Facility, listing, condition data Inventory Warehouse, and Garage base, and forecast of Completed asset Devote existing staff hours to necessary `projects. inventory by 2020. inspection efforts of campus wide Contingent on workload, facilities staffing level, and Complete Concourse B by Q1 2016 completions of new Complete Concourse C by Q2 2017 projects each year Complete Concourse D by Q1 2019 Complete Main Terminal by Q3 2020 Complete IAF and NorthSTAR in Q4 2020 Re-evaluate assets with Utilize in house staff, complete finance department on a existence testing annually as directed rotating 3 to 4 year basis. by finance, and update with condition and remaining life estimates Completed automation of Develop computerized tool and forecast and integrated prepare project proposal by Q2 2017 31 | P a g e 2016 Aviation Business Plan Objective 2: Complete initial comprehensive inventory of the condition of all physical assets across the Airport, continue periodic inspections to assess age and status/lifespan, and develop a system to facilitate forecasting of capital renewal projects and improve on-going maintenance. Performance Measure Performance Target Actions with PeopleSoft and Procure system by Q2 2018 annual capital plan by Q2 o Budget TBD 2019 Objective 3: Create Storm Water Utility (SWM) administration manual, form airport Storm Water Utilty, and update engineering standards manual Background: Storm Water Management (SWM) system is a vital system to the airport operations. The utility will be formed coincident with the next interlocal agreement with the City of SeaTac. Objective 3: Create Storm Water Utility (SWM) administration manual, form airport Storm Water Utilty, and update engineering standards manual Performance Measure Performance Target Actions Airport has an The manual allows Manual complete by Q4 2015 administrative manual to the airport to form a guide utility activities utility The Airport operates a Legal formation of Obtain Storm Water Utility Storm Water Utility airport Storm Water Commission approval in 2015. Per Utility Strategy 7, Objective 3, "Execute new Storm Water Utility Port of Seattle/City of SeaTac ILA operational Storm Water Utility implemented coincident with finalized inter-local agreement The Airport has an Engineering Create IDIQ contract for consultant to updated engineering Standards updated by assist staff in updating standards and standards manual Q4 2016 (not in developing comprehensive plan necessary for initial o In-house and consultant staff utility formation) o $100K expense Strategy 2.0: Become one of the top customer service airports in North America. (PS) Objective 1: Provide and maintain adequate customer service levels during period of exceptional growth. Background: In 2014 Sea-Tac rated 15th of our 25 North American ACI ASQ peers in overall customer service satisfaction. SEA was rated in the bottom 40% of peer airports in 18 of 28 categories. While significant improvements to Sea-Tac's terminal facilities have been made in the last 10 years, parts of the terminal are now over 40 years old, and remain largely unchanged 32 | P a g e 2016 Aviation Business Plan since opening in 1973. Given this standing and the rapid rate of growth, the Airport must expeditiously bolster operational oversight and management of terminal facilities until current capital projects and longer-term Sustainable Master Plan development can be delivered. Objective 1: Provide and maintain adequate customer service levels during period of exceptional growth. Performance Measure Performance Target Actions Meet critical customer Improve Facility Increase janitorial staffing for 2016 to service requirements. Cleanliness address higher passenger traffic. (Rank 18 of 25 in 2014 o New expense funding TBD ASQ) Expand scope of contract to include new areas of coverage. o New expense funding TBD Create specific position of janitorial contract manager. o FTE expense funding TBD Replace Concourse C carpeting at request of Alaska Airlines by Q42016. o New CIP $1.1M Replace Concourse B carpeting at request of Delta Air Lines by Q42016. o New CIP $1.1M Improve Restroom Increase janitorial supplies budget to Cleanliness. address increased passenger volume. (Rank 20 of 25 in 2014 Implement real-time customer ASQ) feedback technology utilizing kiosks at busiest restroom locations. o Budget TBD Complete design for 14 restrooms on Concourses B, C, D. Q4 2016 o CIP 800697 Complete construction for by Q2 2019. o $10.7M Improve Gate Comfort Install additional gate seating 2016- (Rank 21 of 25 in 2014 2019 at South Satellite ASQ) o utilize annual Small Capital budget allocation, $250K Install additional seating at C15 by Q4 2016 o Budget TBD Complete Phase 2 South Satellite Interior Renovations as requested by 33 | P a g e 2016 Aviation Business Plan Objective 1: Provide and maintain adequate customer service levels during period of exceptional growth. Performance Measure Performance Target Actions Delta and international airlines, comprising wall panels, column covers, door panels and casework. o CIP 800549 ,$2.2M, $3.8M RMM, $2.0M expense Improve Courtesy and Expand Volunteer Program Helpfulness of Airport Expand Pathfinder staff to increase Staff daily hours of coverage, manage (Rank 13 of 25 in 2014 queueing in coordination with TSA ASQ) and airline tenants, provide real-time customer service assistance. o New expense funding $TBD. Upgrade airport website to improve user experience and to better inform customers of most-requested airport information, by TBD, $TBD. Improve Checkpoint Wait Implement customer service Times initiatives resulting from 2014 (Rank 17 of 25 in 2014 security checkpoint passenger ASQ) experience survey. IncludesWiFi coverage upgrade at each checkpoint, and examine options to improve ambiance and passenger experience. Conduct follow-up survey of TSA Pre-check customers. Analyze installation of fixed stanchions in security queues by Q4 2016. Improve Airport Upgrade terminal-wide voice paging Ambiance system to facilitate extension of (Rank 15 of 25 in 2014 coverage to NorthSTAR and IAF. ASQ) o New CIP for $1.5M Incorporate northwest sense of place recommendations DATAE o capital and expense projects Budget TBD Improve waiting time in Continue implementation of fixed check-in queue. stanchions in ticket lobby and other (Rank 17 of 25 in 2014 queue areas. Q4 2016 ASQ) o Budget TBD 34 | P a g e 2016 Aviation Business Plan Objective 2: Achieve Top 5 ranking among 25 selected North American peers in 2020 ACI Airport Service Quality (ASQ) survey (PS). Background: Sea-Tac utilizes two key sources of information to drive customer service improvements. To proactively glean guest feedback, Sea-Tac adopted the Airport Service Quality (ASQ) index in 2011 as the industry benchmark for customer service as coordinated globally by Airports Council International (ACI World). Additionally, Sea-Tac maintains a robust real-time database of customer comments from website, social media, and traditional communication feedback sources. Objective 2: Achieve Top 5 ranking among 25 selected North American peers in 2020 ACI ASQ. (PS) Performance Measure Performance Target Actions Airports Council Improve Airport Way- Complete Airport-wide Signage International finding Master Plan, by Q4 2016. (ACI World) Airport (Rank 14 of 25 in 2014 Fund signage infrastructure resulting Service Quality (ASQ) ASQ) from Signage Master Plan Quarterly Survey recommendations. Evaluate signage program alternatives to ensure necessary resources are in place, including increased staffing, to meet customer service objectives. Install dynamic interactive directories to improve way-finding in coordination with Airport Dining and Master Plan by Q4 2018 o Budget TBD through new CIP # Improve ease of Achieve published Minimum connections between Connect Times flights Improve signage and apply other (Rank 15 of 25 in 2014 changes at STS stations that improve ASQ) the experience for international transferring passengers by Q4 2018 o Budget TBD. Begin signage wayfinding improvements at STS stations that result from Signage Master Plan study, by Q4 2016, o Budget TBD 35 | P a g e 2016 Aviation Business Plan Objective 3: Ensure the Airport's technological capability keeps pace with technological evolution so the airport can be flexible in providing valuable customer services to both business customers and travelers. Background: For the Airport to provide good customer service, it must keep up with technology by investing in several areas to that allow the terminal's throughput to advance with growing numbers of passenger: Provide smart-phone based location-analytics to enable indoor way-finding and navigation capability for both passengers and businesses within the airport, and provide data to allow airport staff to optimize use of our dense airport footprint as traveler volumes continue to build. This will be done while ensuring individual privacy for our travelers. Use technology to provide a suite of services (including an airport software application, parking and club reservation options, on-line pre-order and pick up, concessionaire advertising, etc.) to provide excellent customer service and to refine airport business processes. Provide connectivity infrastructure so airlines, concessionaires, and other tenants can better meet passenger needs, and their own evolving business technology requirements. (See also strategy 1.2 objective 15) Objective 3: Ensure the Airport's technological capability keeps pace with technological evolution so the airport can be flexible in providing valuable customer services to both business customers and travelers. Performance Measure Performance Target Actions Smartphone-based, Create smartphone Design, develop and publish an airport indoor navigation application that provides passenger smartphone application (app) infrastructure is available passengers with hand- with indoor navigation capability with that meets passenger held way-finding that business driven feature updates: demand for self-service uses their location (2 Create location maps for passenger airline travel utilizing meter accuracy) within way-finding by Q2 2016 mobile devices the airport terminal Promote Port lounge business by Q2 2016 Create smartphone Updates to promote Airport dining applications that enables and retail tenant offerings by Q4 terminal infrastructure to 2106 inform passengers that Updates to promote ground the airport provides transportation business including personalized way-finding garage service offerings by Q3 2017 mapping, along with o CIP TBD, ~$0.5M in 2016 advertising of various o CIP TBD for 2017 concessions (valet & reserved parking, club room access, food, gifts, 36 | P a g e 2016 Aviation Business Plan Objective 3: Ensure the Airport's technological capability keeps pace with technological evolution so the airport can be flexible in providing valuable customer services to both business customers and travelers. Performance Measure Performance Target Actions etc.) are readily available (Opt-in will be required to avoid privacy concerns) Airport-wide Wi-Fi Wi-Fi analytics and Design and implement Wi-Fi analytics and specialty camera software allow (airport-wide) and camera (selected camera system enables real-time passenger flow areas). Wi-Fi design completed Q2 measurement of information and trending 2016 with phased implementation passenger flows to data to be available by completed in Q2 2017 support multiple airport 2017. o CIP TBD, ~$1M departments (operations, Procure, design, and install camera planning, business flow measurement in selected areas development, security), and integrate with airport airlines, and tenants departments. Procurement plan Q2 2016 and implementation Q2 2017 o CIP TBD, ~$1M Strategy 3: Lead the U.S. airport industry in environmental innovation and minimize the airport's environmental impacts. Background: We completed the new Strategy for Sustainable Sea-Tac (S3) in 2015 and include our new S3 environmental objectives and proposed initiatives in the 2016-2020 business plan. As we begin to identify and implement actions to achieve Century Agenda and S3 objectives, it has become clear that meeting these objectives aligns with the actions necessary to meet Leadership in Energy and Environmental Design (LEED) Silver and Salmon Safe certification requirements. Objective 1: Integrate operational sustainability initiatives into the Strategy for a Sustainable Sea-Tac (S3) Management Plan Background: Continue to integrate sustainability throughout the Sustainable Airport Master Plan (SAMP) by ensuring that S3 initiatives and actions are fully integrated into the S3 Management Plan. Complete environmental review of SAMP (see section 1.2). Objective 1: Integrate sustainability into the S3 Management Plan Performance Measure Performance Target Actions S3 Management Plan. Finalize and implement Complete draft management plan and plan, 2016-2020. gain Commission approval by Q2, 2016. Finalize plan by Q4, 2016. 37 | P a g e 2016 Aviation Business Plan Objective 2: Air Quality and Climate Change: 1) Reduce airport owned and controlled greenhouse gas emissions by 15% below 2005 levels by 2020 and 50% by 2035 2) Reduce aircraft-related greenhouse gas emissions by 25% below 2005 levels by 2035, 3) Increase the percentage of passengers accessing the airport via environmentally-preferred modes of transportation from 60% in 2014 to 70% in 2020, and 4) Reduce air pollutant emissions by 50% from 2005 levels by 2037 (CA) Background: Renewable fuels continue to be one of our most promising strategies to meet our climate protection objectives. We are pursuing opportunities to use renewable natural gas in both the boilers and bus fleet, as well as working with our airline partners to use aviation biofuels. We will also continue to build enough electric charging infrastructure so that both passengers and airlines can use electricity rather than fossil fuels to charge ground support equipment and onroad vehicles. Objective 2: Air Quality and Climate Change: 1) Reduce airport owned and controlled greenhouse gas emissions by 15% below 2005 levels by 2020 and 50% by 2037; 2) Reduce aircraft-related greenhouse gas emissions by 25% below 2005 levels by 2037; 3) Increase the percentage of passengers accessing the airport via environmentally-preferred modes of transportation from 60% in 2014 to 70% in 2020; and 4) Reduce air pollutant emissions by 50% from 2005 levels by 2037. Performance Measure Performance Target Actions Airport owned and Greenhouse gas Continue to evaluate RNG sources controlled greenhouse gas emissions 15% below and, if appropriate, contract either (GHG) and air emissions. 2005 levels by 2020. with third party or directly with producer to fuel CNG buses and Air emissions 50% below boilers with RNG. 2005 levels by 2037. Continue to implement green driver training. Continue to replace STIA fleet vehicles with more fuel-efficient models o (~$50K for electric vehicle (EV) infrastructure & electrical upgrades.) Develop a plan to meet WA mandate that governments use 100% alternative fuels for all vehicles by 2018, as practicable and determined by WA Dept. of Commerce. Make recommendations to senior management Q1 2016 and, if appropriate, request Commission authorization. File with WA State and Certify with ACI-Airport Carbon Accreditation (ACA). 38 | P a g e 2016 Aviation Business Plan Objective 2: Air Quality and Climate Change: 1) Reduce airport owned and controlled greenhouse gas emissions by 15% below 2005 levels by 2020 and 50% by 2037; 2) Reduce aircraft-related greenhouse gas emissions by 25% below 2005 levels by 2037; 3) Increase the percentage of passengers accessing the airport via environmentally-preferred modes of transportation from 60% in 2014 to 70% in 2020; and 4) Reduce air pollutant emissions by 50% from 2005 levels by 2037. Performance Measure Performance Target Actions Aircraft Aircraft-related GHGs. Aircraft-related GHG Continue to improve PC Air system emissions 25% below to increase utilization by airlines. 2005 levels by 2037. Explore options for incentives or penalties for airlines to use PC Air. Air emissions 50% below Recommend port role in advancing 2005 levels by 2037. biofuel delivery. Develop and implement plan to facilitate the procurement and use of biojet fuel at the airport, if feasible. Seek commission policy guidance on biofuel approach and recommendations. Aircraft-Related Monitor eGSE charger use and resolve issues. Develop and implement plan to ensure 90% of eligible GSE vehicles use electricity including identifying opportunities to help airlines and baggage carriers replace petroleumfueled GSE with eGSE. Work with fuel consortium to develop central renewable fueling for GSE not compatible with electric conversion. 39 | P a g e 2016 Aviation Business Plan Objective 2: Air Quality and Climate Change: 1) Reduce airport owned and controlled greenhouse gas emissions by 15% below 2005 levels by 2020 and 50% by 2037; 2) Reduce aircraft-related greenhouse gas emissions by 25% below 2005 levels by 2037; 3) Increase the percentage of passengers accessing the airport via environmentally-preferred modes of transportation from 60% in 2014 to 70% in 2020; and 4) Reduce air pollutant emissions by 50% from 2005 levels by 2037. Performance Measure Performance Target Actions Percent of passengers 70% of passengers use Develop plan for electric vehicles using environmentally- environmentally- (EVs) at the Rental Car Facility. preferred modes of travel preferred modes of travel Develop education program to help to access the airport. to access the airport by passengers use public transit to and 2020. from the airport o $20K Partner with external stakeholders to facilitate access to light rail and metro buses. Continue to implement recommendations from bike plan, including working with stakeholders to facilitate bike access and provide infrastructure for employees and passengers traveling to and from the airport o $20K Evaluate demand and provide Level 1 and 2 charging in parking garage by 2018. o $50K Climate Resilient Airport. Finalize Climate Apply the information collected from Adaptation & Resiliency the 2015 Vulnerability Assessment Plan by 2016. to the development of the 2016 Adaptation & Resiliency Strategy Plan o $20K 40 | P a g e 2016 Aviation Business Plan Objective 3: Materials Use & Recycling: Divert 50% of terminal and 15% of airfield solid waste by 2020. Divert 85% of construction waste by 2020; 90% by 2025 and reach zero waste by 2035. Reduce the volume of hazardous waste generated from Port maintenance and operations to meet requirements for Small Quantity Generator Status by 2020. Background: Sea-Tac has increased our terminal waste diversion rate from 21% in 2009 to 34% in 2014, but we are still 15% away from our goal of 50%. Key efforts to help increase terminal diversion rates include 1) require tenants to use durable or compostable service ware, separate compostables and recyclables from garbage, and provide collection bins in pre and postconsumer areas of stores, and 2) if feasible and cost effective, implement a secondary-sorting program operated by the janitorial service. Staff will also continue to implement our Construction Waste Management master specification. Objective 3: Materials Use & Recycling: Divert 50% of terminal and 15% of airfield solid waste by 2020. Divert 85% of construction waste by 2020; 90% by 2025 and reach zero waste by 2035. Reduce the volume of hazardous waste generated from Port maintenance and operations to meet requirements for Small Quantity Generator Status by 2020. Performance Measure Performance Target 2016-2020 Actions Percent of terminal and 50% of terminal waste Evaluate solid waste management airfield waste diverted. diverted. plan recommendations by Q1 2016. Develop implementation plan by Q2 2016. Begin implementing selected actions by Q3 2016. Divert an additional 5- Evaluate costs, benefits, and 15% of terminal waste. incentives to implement mandatory recycling for tenants and employees by Q1 2016. Ensure program mandates are referenced in tenant leases where appropriate. Divert an additional 2-5% Continue to implement pilot projects of terminal waste. and initiatives including restroom paper towel composting, checkpoint liquid waste reduction, and bag-well recycling o $95K Evaluate innovative waste reduction proposals from janitorial service provider. Expand recycling into underserved terminal areas o $10K 41 | P a g e 2016 Aviation Business Plan Objective 3: Materials Use & Recycling: Divert 50% of terminal and 15% of airfield solid waste by 2020. Divert 85% of construction waste by 2020; 90% by 2025 and reach zero waste by 2035. Reduce the volume of hazardous waste generated from Port maintenance and operations to meet requirements for Small Quantity Generator Status by 2020. Performance Measure Performance Target 2016-2020 Actions Divert an additional 5% of Implement mandatory use of durable terminal waste. or compostable service-ware for airport food and beverage tenants by 2017. Amount of hazardous Less than 220 lbs of Continually research and waste generated. hazardous waste recommend less toxic substitutes for generated per month by products (e.g., paint thinner, etc.) 2020. and other waste reduction opportunities for AV/M. Secure agreement with AV/M for use of substitutes. Work with Maintenance to evaluate AV/M processes that generate hazardous waste and identify reduction opportunities. Amount of Construction, Divert 85% of CDL debris Set CDL recycling targets for future Demolition and Land- from landfill by 2020. projects. clearing (CDL) debris Implement Construction Waste diverted from landfill Specification on all construction projects and evaluate performance. Objective 4: Energy and Conservation: Implement conservation projects and practices that will enable us to meet all future electricity load growth through conservation measures and renewable energy; reduce natural gas consumption per square foot of terminal (CA). See Strategy 4, Objective 4. Objective 5: Water Conservation: Reduce projected future potable water consumption by 4% in 2020 and 12% in 2030. Background: Without new conservation measures, increased enplanements will result in an estimated 30 percent increase in water use over the next fifteen years. Consumption would increase from 206 million gallons (MG) in 2013 to approximately 244 MG in 2020 and 307 MG in 2030. Measures needed to meet the water conservation objective include implementation of environmental performance standards for restrooms, use of rainwater for non-potable needs, irrigation management and other conservation efforts. Water conservation measures will directly support attainment and maintenance of Salmon-Safe Certification and LEED certification. 42 | P a g e 2016 Aviation Business Plan Objective 5: Water Conservation: Reduce projected future potable water consumption by 4% in 2020 and 12% in 2030. Performance Measure Performance Target 2016-2020 Actions Water Use Reduction. Reduce water Finalize the Water Use Reduction plan consumption by 7.0 by 2016 Q2 and identify reduction million gallons per year targets for conservation measures (e.g. by 2020 (4% reduction) restrooms, rainwater capture, and and 18.7 million gallons tenants.) per year by 2030 (12% reduction.) Reduce cooling tower Develop a business case for garage potable water rainwater capture and reuse with consumption. consideration of project costs, utility impacts and land use impacts 2016 Q1. Present business case to Port management and if approved initiate a project in 2017. Reduce restroom potable Continue to evaluate low flow fixtures water consumption with respect to O&M impacts and minimize O&M. finalize environmental performance standards for restroom. Retrofit up to 10 restrooms to new standards by 2020. Reuse of IWTP water Negotiate permit conditions allowing results in reduction in reuse of IWTP water by Q1 2016. potable water use. Complete engineering report for one allowed use (e.g. dust control) by Q4 2016. Initiate at least one IWTP water reuse project/program by Q4 2017 o $30K Complete Airport Implementation Plan by Q2, 2017. Reduce potable water use Complete design for rooftop rainwater through rainwater capture collection and reuse system as part of by over 2.0 million the NorthSTAR project in Q1 2016 gallons per year by 2030 Complete NorthSTAR rainwater capture and reuse system by 2019. Complete design for rooftop rainwater collection and reuse system as part of the IAF project by 2018. 43 | P a g e 2016 Aviation Business Plan Objective 6: Water Quality: Contribute to the restoration of Puget Sound and local receiving waters by providing water quality treatment, flow control, and using green stormwater infrastructure (where feasible) for airport industrial stormwater (CA) Background: Stormwater Site Planning requirements will continue to be enforced on all new and redevelopment projects. Detention and water quality treatment best management practices will be implemented on all new and redeveloped surfaces as applicable. The Airport will develop implementation standards and procedures for stormwater Low Impact Development (LID) program that can be safely implemented in an airport environment. Water Quality measures will directly support attainment and maintenance of Salmon-Safe Certification and LEED certification. Objective 6: Water Quality: Contribute to the restoration of Puget Sound and local receiving waters by providing water quality treatment, flow control, and using green stormwater infrastructure (where feasible) for airport industrial stormwater Performance Measure Performance Target Actions Water quality treatment Maintain 100% treatment Complete stormwater site plans for and flow control. and flow control. all projects as required by Airport's NPDES permit. Identify new and modified facility needs for SAMP projects by Q2 2017. Construct flow control and water quality facilities for SAMP projects. Reduction of copper and Maintain specific copper Construct treatment using zinc in stormwater and zinc stormwater bioretention media mix project for concentrations below enhanced metals removal in SEPL NPDES permit levels. redevelopment project in Q2 2016. Evaluate media performance and identify enhancements for future application by Q3 2017. Complete in-stream monitoring for copper in Des Moines Creek o $10K Low Impact Development Use LID when Submit Airport regulatory-based (LID) implementation appropriate. LID policy to Ecology for review by Q2 2016 and approval by Q4 2016 o $30K Develop Airport implementation guidelines and procedures for LID policy implementation by Q1 2017 Complete surface infiltration feasibility and opportunity study by Q1 2017 Complete vegetated roof guidelines 44 | P a g e 2016 Aviation Business Plan Objective 6: Water Quality: Contribute to the restoration of Puget Sound and local receiving waters by providing water quality treatment, flow control, and using green stormwater infrastructure (where feasible) for airport industrial stormwater Performance Measure Performance Target Actions with Airport-specific limitation by Q2 2016 Objective 7: Education & Integration: institute an environmental education campaign to promote environmental stewardship and raise awareness of airport environmental and sustainability initiatives. Background: The Airport recognizes that our sustainability initiatives are central to our brand. As such, we'll continue to develop "Sustainable In-Sights" to educate the public about our environmental projects throughout the Terminal and on the airfield, and create relaxing and sustainable experiences in the terminal and gate holding areas through our Experience Sustainability Concept. Objective 7: Education & Integration: institute an environmental education campaign to promote environmental stewardship and raise awareness of airport environmental and sustainability initiatives. Performance Measure Performance Target 2016-2020 Actions Number of outreach Complete installation of Continue implementing campaign projects completed. Sustainable In-Sights revisions in terminal by Q1 2016 messaging in Terminal. o $30K Develop messaging in the terminal Complete installation of for other environmental initiatives, at least one Experience including bicycle support, RNG, and Sustainability project. energy conservation o $20K Evaluate costs and benefits of using in flight magazines and broadcast radio for our sustainability messaging by Q4 2016 Install 5 iBeacons (mobile messaging technology) to send Sustainable In- Sights messages to passengers by Q4 2016 Integrate Experience Sustainability concept into NSAT design by Q4 2016 Monitor future projects for opportunities to integrate concept 45 | P a g e 2016 Aviation Business Plan Objective 8: Seek LEED Certification for building projects based on Commission guidance and consistent with Century Agenda goals. Background: USGBC's Leadership in Energy and Environmental Design or LEED provides the most recognized and comprehensive green building certification program in the US. Sea-Tac will continue to use LEED certification as a benchmark to reduce environmental impacts for our building projects. Objective 8: Seek LEED Certification for building projects based on Commission guidance and consistent with Century Agenda goals. Performance Measure Performance Target 2016-2020 Actions LEED Certification. Achieve LEED Master Obtain LEED Master Site Site Designation, and Designation by Q1 2016 Certification for IAF and Obtain LEED Certification for NSAT NSAT. by Q3 2020 Obtain LEED Certification for IAF by Q4 2020 Continue to identify and develop environmental performance/green certification opportunities for tenants and partners o $50K Objective 9: Fish and Wildlife Habitat: Protect, enhance and steward fish and wildlife habitat while maintaining air transportation safety Background: The Airport will continue to minimize the impacts of wildlife hazard management actions and meet or exceed minimum requirements for monitoring and maintaining stream and wetland mitigation site performance. Fish and Wildlife Habitat measures will directly support attainment and maintenance of Salmon- Safe Certification. Best management practices for wildlife hazard management support this objective. Associated performance measures, targets and actions are reported under Strategy 1.1, Objective 1.0. Objective 9: Fish and Wildlife Habitat: Protect, enhance and steward fish and wildlife habitat while maintaining air transportation safety Performance Measure Performance Target 2016-2020 Actions Meet or exceed Habitat management Complete habitat management plan requirements for natural plan. establish objective goals and to resource protection. prioritize actions by Q2 2016 o $25K Implement Monitor and enhance the old Tyee protection, Valley Golf Course upland planting enhancement and and plant pollinator habitat to attract 46 | P a g e 2016 Aviation Business Plan stewardship actions. native bees and other insects (Q3 2016.) Participate in regional planning initiatives that promote habitat connectivity (ongoing). Strategy 4.0: Keep airline costs (CPE) as low as possible without compromising operational and capital needs. Objective 1: Maintain passenger airline cost per enplaned passenger (CPE) and forecasted CPE within the middle third of peer airports (list of 22 airports focusing on large hubs and Western U.S. airports) through 2020. (PS) Background: CPE includes both operating and capital costs attributable to the passenger airline rate base. Under SLOA III, CPE is also impacted by revenue sharing. Over the next five years, we currently plan to invest approximately $1.7 billion in capital improvements. With these investments, there will be continued growth in airline rates and charges, causing CPE to grow. Maintaining a CPE in the middle third of our peer airports indicates that costs will be reasonable and that the investments are affordable. Objective 1: Maintain passenger airline cost per enplaned passenger (CPE) and forecasted CPE within the middle third of peer airports (list of 22 airports focusing on large hubs and Western U.S. airports) through 2020. (PS) Performance Measure Performance Target Actions Passenger airline cost per CPE within the middle Compile peer airport CPE annually enplanement (CPE) third of 22 peer airports for most recent year for which through 2020 comparative information is available (one or more year lag). Compile/update annually most recent forecasts of peer airport CPE by July 1 so that target range is understood prior to launching annual budget process. Consistently measure budget proposals and capital budget plans against these metrics. Annually, set capital budget limit so that total five-year capital spending does not cause forecasted CPE to exceed forecasted CPE of middle third of 22 peer airports. Set capital budget priorities and adjust timing of project spending as needed to stay within limit. 47 | P a g e 2016 Aviation Business Plan Objective 1: Maintain passenger airline cost per enplaned passenger (CPE) and forecasted CPE within the middle third of peer airports (list of 22 airports focusing on large hubs and Western U.S. airports) through 2020. (PS) Performance Measure Performance Target Actions Determine Commission preferences regarding future rates and charges resolution vs. agreement. Objective 2: Maintain Total baseline O&M costs (including Corporate, CDD and Police) at or below $12.00 per enplanement through 2020. Background: This allows up to a 3.9% compound annual growth rate (CAGR) based on 2015 baseline budget costs. Baseline budget excludes any agreed upon target exceptions (e.g., Regulated Materials, Airline Realignment, etc.). These target exceptions are non-recurring or are driven by capital projects. This target does not include the O&M costs associated with major new facilities such as the proposed International Arrivals Facility (IAF). Objective 2: Maintain total baseline O&M costs per enplanement (including Corporate, CDD and Police) at or below $12.68 through 2020. Performance Measure Performance Target Actions Baseline operating and $12.68 per enplanement Set aggressive budget targets maintenance costs (total through 2020 consistent with the target airport, covering both Evaluate every open position (FTE) aeronautical and non- for repurposing or elimination before aeronautical businesses) filling Use Continuous Process Improvement (CPI) to mitigate cost growth (See Strategy 6.0) Use energy conservation projects (see Objective 4 below) to reduce growth in energy costs. Objective 3: Develop a balanced overall funding plan for the International Arrivals Facility (IAF) and other airport projects such that all airline rates and CPE are fair and are within the market of peer/competitor airports, thereby creating a level playing field for all of our airline partners. Background: Capital costs paid with PFCs are not included in the airline rate base. Under the current airline agreement (SLOA III), airline rates are determined by cost and volume metrics for each major cost center. PFCs can be used to directly pay capital costs during construction or to pay revenue bond debt service in order to manage the capital costs to be recovered in a cost center. Under SLOA III (section 8.4.4), the Port also has the option to use non-airline revenues to offset FIS costs and thereby reduce the FIS rate. With these two financing tools, and based on the best available information about current and future airline rates and CPE, staff will strive to achieve the objective of maintaining "market" rates and CPE. 48 | P a g e 2016 Aviation Business Plan Objective 3: Develop a balanced overall funding plan for the International Arrivals Facility (IAF) and other airport projects such that all airline rates and CPE are fair and are within the market of peer/competitor airports, thereby creating a level playing field for all of our airline partners. Performance Measure Performance Target Actions FIS rate FIS rate is within the Submit PFC application to gain FAA range of competitor authorization to use PFCs on IAF, Airports (such as: Los North Satellite expansion, and Angles, San Francisco, Baggage Optimization projects in Denver, Portland, 2016 Vancouver) Use up to $200 million of airport cash to fund construction costs of IAF, without charging the FIS rate base and amortization cost. Use up to $100 million of PFCs to fund construction costs of IAF. Annually, use PFCs as needed upon opening of the IAF (2019) to reduce the FIS rate to within the range of competitor airports Landing fee rate Landing fee rate no Annually, use PFCs to pay revenue higher than middle third bond debt service of Third Runway of 22 peer airports capital costs in order to maintain Landing fee rate within target range. Terminal Rents Average Terminal rental Annually use PFCs to pay revenue rate is within the middle bond debt service of PFC eligible third of 22 peer airports projects such as Concourse A and Satellite Transit System Include North Satellite expansion project in PFC application in 2016. Objective 4: Implement conservation practices that will reduce natural gas usage and enable Airport to meet all future electricity load growth (2010 baseline) through conservation and renewable energy (CA). Background: The baseline electrical consumption for 2010 was 17.539 average megawatts (aMW). This represents the maximum amount of electricity the Port can acquire from the Bonneville Power Administration at the low Tier I rate. For consumption above this level, the Airport pays the higher Tier II rate (currently 31% higher). To avoid paying this higher rate, the Airport will seek to reduce electrical consumption through conservation and upgrading to energy efficient lighting and mechanical systems. Capital improvements will focus on facilities and 49 | P a g e 2016 Aviation Business Plan systems with greatest opportunities for improvement, but all investments will target a positive net present value (NPV). Objective 4: Implement conservation practices that will reduce natural gas usage and enable Airport to meet all future electricity load growth (2010 baseline) through conservation and renewable energy (CA). Performance Measure Performance Target Actions Annual natural gas Complete natural gas Skybridge automatic doors on consumption in therms conservation projects terminal side, installed in 2016 Ongoing HVAC balancing for energy conservation Complete mechanical conservation stage 3 project by 2016. These projects also conserve electricity Annual electrical Keep airport base load at Assess ramp lighting improvements consumption in average less than 17.539 aMW and renewal/replacement in 2016, megawatts (aMW) and install in 2017 Complete 50% of the work for garage lighting conservation project by Q4 2016 and remainder completed by Q3 2017 o CIP C800581, $6.2 M o CIP C800658, $3.5 M Energy efficient airport Energy Usage Index Complete design & installation of facilities (EUI) identified for each Smart Facility Management System airport facility to to integrate electrical and mechanical facilitate energy use data by 2018 improvements o $100K in 2017 Develop electrical load growth forecasting tool via Master Plan by 2017 o $50K in 2016 Objective 5: Reduce Potable Water Costs Background: Sea-Tac airport currently pays retail water rates from Seattle Public Utilities (SPU) with an estimated 2015 water expense of $2.1M. Sea-Tac airport has the potential of saving $0.9M annually for the same amount of water by transferring service from SPU to Highline Water District (HWD). SPU rates are $5.69 per CCF for winter 2015, and $7.23 CCF for Summer 2015, whereas, HWD rates are $3.55 per CCF (37% less) for Winter 2015 and $4.20 per CCF (42% less) for Summer 2015. One CCF is equal to one hundred cubic feet of water. Highline may require additional infrastructure in order to meet the Port's fire flow demand. 50 | P a g e 2016 Aviation Business Plan Objective 5: Reduce potable water costs Performance Measure Performance Target Actions Water Rates Future Commercial Water Procure consultant Rates below current rates Retain consultant to assist staff in completing a hydraulic modeling analysis to determine feasibility of intertie with adjacent water district. Q1 2016 o Budget TBD Objective 6: Manage financial activity to achieve targeted metrics. (PS) Background: Achieving CPE objectives requires a comprehensive approach to managing financial performance taking into account a number of measures. Objective 6: Manage financial activity to achieve targeted metrics. (PS) Performance Measure Performance Target Actions Financial results Achieve budgeted Net Review financial results and update Operating Income each forecast at quarterly, adjust spending year as needed Competitive airport costs Passenger airline cost per Annually review peer airports' CPE enplaned passenger and publicly available projected CPE (CPE) within middle third Review capital spending plan and of 22 peer airports financial forecast of CPE against this metric. Adjust spending as needed. Cash flow Achieve debt service Maintain 10-year cash flow forecast, coverage > 1.25x each adjust capital spending and expenses year as needed Liquidity Maintain average balance Build funding plan in accordance of unrestricted cash and with assumed minimum cash balance investments 10 months Review cash balance monthly, adjust of O&M costs funding plan or spending as needed Leverage Maintain debt/enplaned Annually review peer airports' debt passenger within middle per enplaned passenger and publicly third of 22 peer airports available projections of debt Review capital spending plan and financial forecast of CPE against this metric. Adjust spending as needed 51 | P a g e 2016 Aviation Business Plan Strategy 5.0: Maximize non -aeronautical net operating income (NOI) consistent with current contracts, appropriate use of airport properties and market demand. (PS) Objective 1: Grow Airport Dining and Retail sales per enplanement (SPE) from a 2014 SPE of $11.79 to $13.61 by the end of 2020. Background: The lease transitions of the Airport Dining and Retail program began in 2015 following completion of a master plan for the program's redevelopment. The analysis of demand for ADR products and services continues, however, to be reviewed and updated, as necessary, consistent with new enplanement growth forecasts and further work on the overall Sustainable Airport Master Plan. Flexibility remains in the plan to adjust square footage requirements and category offerings to meet the needs of airlines and the traveling public. Infrastructure improvements to maximize square footage and tenant operations continue in 2016 with commencement of construction of elevator access to the mezzanine levels of the Central Terminal for new dining development. Objective 1: Grow Airport Dining and Retail sales per enplanement (SPE) from a 2014 SPE of $11.79 to $13.61 by the end of 2020. Performance Measure Performance Target Actions Sales per Enplanement $13.61 by the end of 2020 Program Redevelopment (SPE) Conduct Request for Proposal RFP processes for two large operator food service packages by the end of Q2 2016. Conduct Competitive Evaluation Processes (CEP) for multiple small packages and individual units. Initiate tenant design and construction processes for leases approved in late 2015 and 2016. Open approximately 10 new or redeveloped locations in 2016. Open new Concourse A anchor restaurant with integrated live music performance capacity by end of 2016. Finalize planning and design for dining, retail and services locations as a part of the NorthSTAR project design by the end of 2016. Execute transition of units in accordance with ADR Master Plan phasing plan each year 2016-2021. Develop and lease North Satellite units in conjunction with NorthSTAR. Complete re-demising of units in 52 | P a g e 2016 Aviation Business Plan Objective 1: Grow Airport Dining and Retail sales per enplanement (SPE) from a 2014 SPE of $11.79 to $13.61 by the end of 2020. Performance Measure Performance Target Actions ADR Master Plan (phasing and leasing plan elements) Phase I by end of Q2 2016 in preparation for new leasing in 2016-2017. Develop new dining and retail branding and marketing strategy that also serves to elevate the brand identity of the music program and the airport as a whole, to coincide with opening of new units in 2016. Prepare new solicitation for airport advertising contract for issuance at end of Q1 2017 to include plans for new inventory in future IAF and NorthSTAR facilities as well as provisions for WA tourism promotion program. Objective 2: Grow garage parking revenues from $59.9 million forecast in 2015 to $69.5 million by the end of 2020. Background: The airport parking market at Sea-Tac is one of the most competitive in the nation with approximately 32 different operators competing for the 1+ day airport parking transactions. This business plan is designed to improve the competitiveness of the airport's garage within this highly competitive environment. Objective 2: Grow garage parking revenues from $59.9 million forecast in 2015 to $69.5 million by the end of 2020. Performance Measure Performance Target Actions Parking revenues $69.5 million by the end New Programs and Services of 2020. Procure and install a new Parking Revenue Control System (PRCS) to enable full implementation of revenue-generating programs and services by the end of 2017. If a pre-booking system unintegrated with the PRCS is determined to be feasible, implement it in Q1 2016. Integrate pre-booking system with the PRCS by end of 2017. Determine long-term plan for introducing remote parking products by end of 2016. 53 | P a g e 2016 Aviation Business Plan Objective 2: Grow garage parking revenues from $59.9 million forecast in 2015 to $69.5 million by the end of 2020. Performance Measure Performance Target Actions Expand use of the existing coupon program by achieving 90,000 passengers enrolled in the program and $1.93 million generated of net new revenue by the end of Q4, 2016. Customer Experience Continue implementation of the Garage Improvement Plan with maintenance/appearance improvements to Floor 3 by end of 2016. Elements to include deep cleaning, striping removal and replacement, and column and beam painting. Continue implementation of the Garage Improvement Plan, deepcleaning and restriping/painting one floor per year: 2017 2020. Expand the new parking ambassador program to encompass additional floors of the garage beyond floor 4. Determine plan for parking guidance system improvements by end of 2016. Objective 3: Grow annual revenues from leasing Airport property to $3.7 Million per year by the end of 2020. Background: The Airport has 183 acres of property (note: this does not include property where development has been put on hold until the completion of SAMP or the Des Moines Creek Business Park 1 where development is already underway) that have been identified for development. The vast majority of these properties were acquired using funds provided by the FAA through their mandated Noise Mitigation Program. Within the FAA grant assurances associated with these funds, there is a requirement to put these properties back into productive uses, supportive of the airport. The primary focus is to prepare these properties for offerings to private sector developers as ground leases to generate non-airline revenue for the Airport as well as create jobs and opportunities in the community. (The Real Estate Division manages these real estate initiatives; Aviation Business Development is the Airport "Client".) 54 | P a g e 2016 Aviation Business Plan Objective 3: Grow annual revenues from leasing Airport property to $3.7 Million per year by the end of 2020. Performance Measure Performance Target Actions Lease revenues $3.7 Million per year by Properties in Burien: end of 2020. Northeast Redevelopment Areas 2 and 3: Complete design & infrastructure planning 2016 2018, using FAA pilot program funding. Secure Commission approval of ground lease. Coordinate entitlement permitting work with a developer. Properties in Des Moines: Des Moines Creek Business Park (DMCBP) 1 87 acres: Monitor completion of Phase 1 improvements by end of Q1 2016 consistent with the approved plans and specifications. Finalize and execute Phase 2 ground lease by end of Q3 2016. Monitor completion of Phase 2 improvements Q4 2016 2017 consistent with the approved plans and specifications. Finalize and execute Phase 3 ground lease to support the FAA regional office facility by the end of Q1 2016. DMCBP 2 17 acres: Collaborate with City of Des Moines to prepare a plan for the site's redevelopment by end of 2016. Properties in SeaTac: L Shape - 26.2 acres: On-hold until SAMP is complete. DMCBP 3 28.7 acres: Initiate conceptual planning by end of 2016. 55 | P a g e 2016 Aviation Business Plan Objective 3: Grow annual revenues from leasing Airport property to $3.7 Million per year by the end of 2020. Performance Measure Performance Target Actions Prepare plan for site's redevelopment by end of 2017. 28th Avenue S. Development Area 35.7 acres: On-hold until SAMP is complete. North of Runway Parcel 13 Acres. On hold until SAMP is complete. Objective 4: Grow revenues from ground transportation service providers operating at the Airport from $8.5 Million forecasted in 2015 to $9.3 Million by the end of 2020. Background: Ground transportation services at Sea-Tac consist of ten different operating classes ranging from taxis to courtesy shuttles. New types of services, referred to as transportation network companies (TNC's Uber, Lyft, Sidecar, etc.), have entered the Puget Sound market in recent years. The focus for this business plan is managing the ground transportation program amidst both the rapid growth of the airport and the significant changes taking place within the ground transportation industry. Objective 4: Grow revenues from ground transportation service providers operating at the Airport from $8.5 Million forecasted in 2015 to $9.3 Million by the end of 2020. Performance Measure Performance Target Actions Revenues from ground $9.3 Million by the end of Evaluate performance of TNCs under transportation service 2020. new agreement established in 2015 providers operating at the and determine how to proceed Airport. contractually in 2016. Release RFP on Q2 2016 for on- demand taxi contract and select operator by end of Q3 2016. Develop comprehensive ground transportation strategy by end of Q2 2016. Objective 5: Increase the revenues generated from the Airport's common -use lounge business from $2.4 Million forecasted in 2015 to $3.2 Million by the end of 2020. Background: The Airport has been operating two common-use lounges at Sea-Tac, one located on the South Satellite and the other on Concourse A, through a management contract initiated in 2010. A new agreement with a new operator commenced in early 2015 for a term of three years with two one-year options to extend. With the new lounge contract, there are opportunities for growth through a broadening of the customer base to include non-airline affiliated customers, and by extending hours of operation. In addition, with the forecasted growth of enplanements 56 | P a g e 2016 Aviation Business Plan and the increasing need of primarily international, but also domestic carriers for lounge space, opportunities will be explored to expand the number of common-use lounges at Sea-Tac over the next several years. Objective 5: Increase the revenues generated from the Airport's common-use lounge business from $2.4 Million forecasted in 2015 to $3.2 Million by the end of 2020. Performance Measure Performance Target Actions Revenues from common- Lounge revenues exceed Implement enhanced lounge service use lounge services. $3 Million by the end of offerings by the end of Q1, 2016. 2020. In light of airlines changing their offering of lounges at SEA, evaluate demand for airport's common-use lounges. Strategy 6.0: Continually invest in a culture of employee development, organizational improvement, and business agility. Objective 1: Grow a mature Business Intelligence (BI) and performance management capability, which will achieve broad data-driven decision making by 2019. Background: "Business intelligence" describes a set of resources, processes, and tools that allows the analysis of data or information in new and novel ways that can produce better business decisions in a shorter period. The Airport's BI program enables employees to answer business questions with agility, improves employee efficiency, and supports data-driven and informed planning and decision-making. Objective 1: Grow a mature Business Intelligence (BI) and performance management capability, which will achieve broad data-driven decision making by 2019. Performance Measure Performance Target Actions BI Strategy Plan New governance Develop governance policy and execution (including structure in place by procedures, data standards and development of BI Q2 2016 analytics best practices. Assess best governance; data and Data and analytics practices and identify necessary skills analytic standards and standards to develop additional advanced capabilities, and implementation by Q1 analytical and market research information management 50% of existing ETL capabilities. (storage/extraction) processes automated o $40K 2016 (consultant) efficiencies by Q4 2016 Automate ETL processes for external cloud data source access (CPI/Lean project permanently eliminating manual processes) o $75K for on call consultant Increase staff use of BI BI content is actively Complete eight new BI projects in content. used by 50% of Aviation 2015 driven by business needs and Division staff by 2019 providing measurable benefit across 57 | P a g e 2016 Aviation Business Plan Objective 1: Grow a mature Business Intelligence (BI) and performance management capability, which will achieve broad data-driven decision making by 2019. Performance Measure Performance Target Actions (2014: 6%) various Airport departments. Complete an additional 8, or more projects per year through 2019. o 2016 Budget: Resource Airport staff analytical Participation of 50 staff in Develop on-line training curriculum production and workshops for graphical literacy /analytical consumption capabilities methods by Q4 2016; o $52K om 2015 for consultant + capacity above resource Objective 2: Improve airport work process flows and business agility Background: The airport staff and certain work flows have benefitted from Lean process improvements. Continue that work at the airport to support corporate wide strategic innovations and Lean direction. Contingent upon pending broader direction to be noted in corporate business plans, the airport intends to improve processes in two areas. Objective 2: Improve airport work process flows and business agility Performance Measure Performance Target Actions Work processes have Waste is measurably Improve airport drawing review improved flow minimized within system flow work flows Begin initial improvements within several maintenance work groups Note: additional objectives and actions will be developed in alignment with Port-wide strategies that are still under development. Strategy 7.0 Maintain valued community partnerships based on mutual understanding and socially responsible practices. Objective 1: Implement noise mitigation programs consistent with updated Part 150 and Commission direction. Background: The Federal Aviation Regulation (FAR) Part 150 Noise and Land Use Compatibility Study approved by the FAA in 2014 updated the airport's Noise Exposure Map (NEM) and Noise Compatibility Program (NCP). Studies to determine the feasibility of implementing noise insulation programs for apartment buildings and places of worship are being conducted during 2015. Results of those studies will be presented to Commission in early 2016, and implementation of the measures documented in the NCP are scheduled to begin upon Commission authorization to proceed. 58 | P a g e 2016 Aviation Business Plan Objective 1: Implement noise mitigation programs consistent with updated Part 150 and Commission direction. Performance Measure Performance Target Actions New Part 150 programs Project priorities Brief Commission on project priority identified and plan Q1 2016 approved Develop proposed program plan and Obtain AIP funding new capital program for Investment Implementation of Committee and Commission approval prioritized mitigation by end of Q2 2016 programs Initiate procurement processes and grant applications for new projects by end of Q3 2016 Secure grant funding and commence new programs 2016 2020 Budget for all new programs approx. $42M (capital and expense) Highline Schools sound Insulate school Insulate school buildings insulation projects buildings (timing o Budget: $38.5M unspent (MOA) TBD on availability of district funding) Ground Run Up Decisions made Determine location and appropriate Enclosure about feasibility and timing of construction Q1 2016 siting Conduct environmental review (if Obtain AIP funding necessary), noise evaluations, design and permitting 2016 2017 Apply for AIP grant 2017 Construct 2018 2019 Objective 2: Collect accurate data to monitor compliance with noise abatement procedures and investigate stakeholder inquiries about airport noise. Background: The Noise Programs Office operates a noise and operations monitoring system (NOMS) to ensure airline compliance with noise abatement procedures, analyze data and investigate inquiries about noise. The system consists of noise monitors, a software system and public website. NOMS data is used to manage the Port's annual Fly Quiet Program and is critical to producing information required by the FAA and responding to an annual average of 2,000 public inquiries about noise. Objective 2: Collect accurate data to monitor compliance with noise abatement procedures and investigate stakeholder inquiries about airport noise. Performance Measure Performance Target Actions Noise monitor and flight Monitor noise Review noise abatement procedure tracking system is abatement procedures compliance with FAA monthly 2016 operational and provides Provide specialized 2020 59 | P a g e 2016 Aviation Business Plan Objective 2: Collect accurate data to monitor compliance with noise abatement procedures and investigate stakeholder inquiries about airport noise. Performance Measure Performance Target Actions accurate data airport noise and Respond to community inquires 2016 flight tracking reports - 2020 Track historic and Fly Quiet Program 2016 - 2020 current noise trends Conduct noise contour review required by prior litigation Q4 2017 and Q4 2020 o Budget TBD expense (Staff/O&M) Objective 3: Facilitate and maintain effective inter-jurisdictional partnerships, with the goal of securing local support for Port priorities and redevelopment of Port-owned land in airport communities. Background: Collaboration with airport cities to redevelop Port-owned property under their regulatory jurisdiction achieves the joint goal of returning these properties to productive use. Effective community partnerships provide a structure for airport cities to engage with the Port on airport operational and growth issues that impact airport communities. These actions advance Century Agenda economic development goals and sustain mutually supportive relationships with airport community residents, city leaders and policy-makers. Objective 3: Facilitate and maintain effective inter-jurisdictional partnerships, with the goal of securing local support for Port priorities and redevelopment of Port-owned land in airport communities. Performance Measure Performance Target Actions Airport communities Airport issues Facilitate meetings with community understand and are communication plans coalitions - Highline Forum and engaged in decisions align with Port-wide Soundside Alliance 2016 - 2020 about development of communication plans Budget: $5K/yr Soundside Port-owned property and strategies Alliance under local Airport community Sponsor SW King County Chamber government control participation in events 2016 - 2020 Airport communities SAMP public Budget: $12K/yr expense understand and processes for Develop and distribute Airmail, support Port planning identified projects Airport Check-In and other written decisions required to Airport land use communications 2016 - 2020 accommodate airport compatibility issues Budget: (AirMail) $10K/yr growth are resolved and local expense Airport communities development interests Assess and respond to Aviation support the Port's are aligned with Port Division needs for communicating leadership on priorities with diverse audiences 2016 - 2020 economic Opportunities for joint Budget: $25K/yr expense development pursuit of resources Manage SAMP airport community initiatives are identified and 60 | P a g e 2016 Aviation Business Plan Objective 3: Facilitate and maintain effective inter-jurisdictional partnerships, with the goal of securing local support for Port priorities and redevelopment of Port-owned land in airport communities. Performance Measure Performance Target Actions initiated engagement and outreach strategy Provide regular SAMP updates to targeted airport communities, local, state and federal legislative offices, agency officials, and trade/travel industries in proximity to public commission briefings Integrate SAMP updates and key messages in educational outreach and Port speaking engagements Reinforce for regional and airport audiences that Sea-Tac is a leading economic development engine and collaborates to identify community economic benefit from Airport activity growth. Facilitate meetings between Port and airport community leaders and decision-makers 2016 2020. See Strategy 5, Objective 3 Execute new Port of Seattle/City of SeaTac ILA February 1, 2016 Administer new ILA 2016 2020 Objective 4: Implement, administer and monitor Aviation Division programs that support Portwide workforce development strategies and Commission Quality Jobs policies (CA). Background: The Port is committed to developing sustainable programs and services that provide opportunities for individuals to access training and career advancement. This work requires ongoing collaboration with a variety of partners to create strategies for increasing workforce training and employment opportunities. Objective 4: Implement new aviation division programs that support Port-wide workforce development strategies and Commission Quality Jobs policies. Performance Measure Performance Target Actions Aviation Division Annual high school Facilitate high school internships and education and workforce internships funded expand aviation career awareness development programs and implemented programs by Q4 2016 supporting Quality Jobs Increased number of Coordinate career awareness policies airport-based career (engineering, skilled trades) activities awareness in collaboration with local school 61 | P a g e 2016 Aviation Business Plan opportunities for district(s) by Q4 2016 students o Budget: Interns $25,000 expense Compliance with Increased employee Utilize custom-designed software Resolution 3694 retention (airport tracking system to monitor employers) compliance with Resolution 3694 Decreased number of (timeframe uncertain based on 3694 safety and security implementation) violations (airport o Budget TBD employers) Employment Continuity Participation available Database operational for 2016 Pool to all eligible ADR affected employees Q1 2016 tenant employees Vendor procedures for engagement with employers established Q1 2016 Vendor performance metrics established Q1 2016 Vendor reporting schedule and requirements established Q1 2016 Job fairs and other events as necessary 2016 2017 Budget TBD, as outcome of 2015 procurement Objective 5: Contribute to Port-wide small business goals by facilitating access to Aviation Division opportunities for local businesses (CA). (This objective may be updated upon completion of the Economic Development/OSR business plan.) Background: The Port encourages small businesses from communities around the airport to access airport/port business opportunities and includes in project plans methods to facilitate and support small business participation. Objective 5: Contribute to Port-wide small business goals by facilitating access to aviation division opportunities for local businesses. (This objective may be updated upon completion of the Economic Development/OSR business plan.) Performance Measure Performance Target Actions Percentage of gross sales Maintain Implement minimum of two targeted generated by small approximately 35% of events and outreach to local small businesses (ADR) gross sales during business restaurant and retail leasing transition community in Q1 and Q3 2016 (35% is the current o $30K per outreach event participation rate for small businesses) Maintain full tenancy in small business kiosk program Increased competition for Database containing Launch online curriculum for 62 | P a g e 2016 Aviation Business Plan Objective 5: Contribute to Port-wide small business goals by facilitating access to aviation division opportunities for local businesses. (This objective may be updated upon completion of the Economic Development/OSR business plan.) Performance Measure Performance Target Actions tenant design and at least 50 local prospective local construction firms construction projects vendors of Q1 2016 (ADR) architectural, Build database of firms completing engineering and online curriculum Q3 2016 construction services o $25K database development and to serve future tenant management build-out projects 63 | P a g e
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