8i. Memo - PACCAR Lease Amendment
COMMISSION AGENDA MEMORANDUM Item No. 8i ACTION ITEM Date of Meeting November 16, 2021 DATE: October 12, 2021 TO: Stephen P. Metruck, Executive Director FROM: Steve Kennard, Aviation Business & Properties, Property Manager Jeff Moken, Sr. Manager of Airline Affairs & Aviation Properties SUBJECT: PACCAR Hangar Lease Amendment for Interim Westside Fire Station Use ACTION REQUESTED Request Commission authorization for the Executive Director to execute an amendment (Amendment No. 7) to the lease with PACCAR at Seattle-Tacoma International Airport. EXECUTIVE SUMMARY As the Seattle-Tacoma Airport (Airport) prepares for the opening of the interim westside fire station, Aviation Business and Properties recommends amending PACCAR's hangar lease. This amendment will provide Aircraft Rescue and Fire Fighter (ARFF) personnel with suitable parking for private vehicles and access to the new interim westside fire station in exchange for a corresponding reduction in rent. PACCAR's lease from the Port includes a parking area located adjacent to the interim west fire station, which PACCAR has agreed to share with ARFF and visitors to the station. In addition to the rent reduction, the Port has also provided PACCAR some additional assurance that the Port would not exercise its 2-year capital project termination provision earlier than January 1, 2023. PACCAR's hangar lease expires May 31, 2031. Timing of this amendment is important as the interim fire station enters the final stages of construction. With preparations for occupancy underway, firefighter parking is a key requirement for emergency response and readiness of interim fire station operations. JUSTIFICATION To meet the Federal Aviation Administration's (FAA) Federal Aviation Regulation Part 139 airport certification process, the Port has elected to construct a westside fire station to meet minimum emergency response times. The proposed lease amendment ensures secure parking for ARFF personnel and access to the adjacent interim fire station for its initial and ongoing operations that will fulfill the certification requirement. Template revised January 10, 2019. COMMISSION AGENDA Action Item No. _8i___ Page 2 of 4 Meeting Date: November 16, 2021 Several parking and access options have been considered for the interim fire station, but the simplest, most convenient, sustainable, and affordable option is for staff of both the interim fire station and PACCAR to share the existing PACCAR parking lot. Shared parking benefits: (1) Eliminates cost of constructing and maintaining a separate vehicle gate and fence. (2) Improves utilization of existing parking asset rather than building new. (3) Limits the number of Secure Identification Display Area (SIDA) access gates and associated costs by providing access to 2 building integrated SIDA entrances from one parking area. DETAILS The amendment changes the PACCAR Hangar Lease in three ways: (1) Areas for Port Use (interim fire station use) are identified, and PACCAR's rent is reduced accordingly. (2) The Port's two-year capital project termination provision is modified, so that it cannot be exercised prior to January 1, 2023. (3) Shared use provisions for the PACCAR parking lot are outlined. Schedule The amendment should be executed by December 1, 2021 in time for interim fire station staffing and initial operations. ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternatives to sharing the parking lot were considered including remote parking and separate parking facilities. Each of these alternatives carried significant additional costs and/or logistical challenges. Alternative 1 Transport firefighters from remote parking at primary fire station at the beginning and end of each shift. Cost Implications: This alternative requires approval of the firefighters' union. The costs, if approved, would be overtime costs, and transportation costs. Pros: (1) Would save $12,817/year by not reducing PACCAR's rent. Cons: (1) Would require a challenging negotiation with firefighter union. (2) In addition to managing logistics for transporting firefighters for shifts, other routine and unscheduled access to the station would be challenging. This is not the recommended alternative. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. _8i___ Page 3 of 4 Meeting Date: November 16, 2021 Alternative 2 Build a separate, adjacent parking facility dedicated to ARFF parking. Cost Implications: Cost for paving, electrical, rerouting sprinklers, fencing, gates, SIDA entrances, Americans with Disabilities Act (ADA) access grade changes, Transportation Security Administration required upgrades was estimated at $750,000. Maintenance costs for new parking area and associated equipment estimated at $1/square foot/yr would be about $9,000/yr. Additionally, PACCAR rent would be reduced by $12,817/yr. Pros: (1) Fire station would have a separate, exclusive parking area with no shared use management responsibilities. Cons: (1) New parking entrance may conflict with adjacent W-39 gate. (2) Second SIDA entrance in fence adds to SEA maintenance and risk. (3) Pedestrian walkway for fire station access would be in snowshed vehicle drive paths. (4) Parking area would be narrow and constrained for service vehicles/visitors. This is not the recommended alternative. Alternative 3 Amend the existing PACCAR Hangar Lease to allow shared use of existing, secure parking area. Cost Implications: PACCAR's rent to the Port would be reduced by $12,817/yr. Pros: (1) Use of existing vehicle gate prevents congestion and reduces risk. (2) Single SIDA access through fire station west entrance. (3) Parking area, gate, fence, and landscaping maintenance covered by PACCAR. (4) Parking area has ample room for easy travel, including service vehicles/visitors. Cons: (1) Shared use requires ongoing management and attention by SEA staff. This is the recommended alternative. ATTACHMENTS TO THIS REQUEST (1) Presentation slides PREVIOUS COMMISSION ACTIONS OR BRIEFINGS September 28, 2021 Commission authorized a funding increase for the Interim Westside Fire Station project. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. _8i___ Page 4 of 4 Meeting Date: November 16, 2021 March 29, 2021 The Commission authorized a funding increase for the Interim Westside Fire Station project. October 8, 2019 The Commission authorized a funding increase for the Interim Westside Fire Station project May 28, 2019 The Commission authorized use of a design-build contract for the Interim Westside Fire Station project. No additional funding was requested. February 27, 2018 The Commission authorized a lease amendment to the lease with PACCAR and design and construction of the Interim Westside Fire Station project. Template revised June 27, 2019 (Diversity in Contracting).
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