8f. Memo
Ratification of Snow Removal Service Expenditures
COMMISSION AGENDA MEMORANDUM Item No. 8f ACTION ITEM Date of Meeting January 25, 2022 DATE: January 11, 2022 TO: Stephen P. Metruck, Executive Director FROM: Stuart Mathews, Director, Aviation Maintenance Brendalynn Taulelei, Senior Manager, Aviation Maintenance SUBJECT: Ratification of Emergency Snow Removal Expenditures and Extension of Contracts Amount of this request: $1,650,000 Total estimated project cost: n/a ACTION REQUESTED Aviation Maintenance is requesting four actions. 1. Ratification of snow removal service expenditures for Seattle-Tacoma International Airport from December 23-31, 2021 via emergency snow removal contracts with Aero Snow Removal LLC (Aero) and Scarsella Brothers Inc. (Scarsella). 2. Ratification amending the existing Ceccanti Inc., (Ceccanti) contract for additional snow removal service to address the December 2021 snow event. 3. Amend contract with Ceccanti to add an estimated $400,000 to cover future snow events through March 2022. 4. Amend contracts with Aero and Scarsella to add estimated $250,000 to each contract and extend the contracts from January 30, 2022, to March 31, 2022. SUMMARY The Airport has two existing snow removal contracts. On November 9, 2021, Commission approved an increased contract value for these existing contracts by $1,200,000, to a new contract value of $4,000,000. In preparation for the December 2021 snow event Port staff became aware that one of our snow removal contractors was in a labor dispute with one of their unions, which had the potential to impact Airport operations. Due to concerns of having proper resources for snow removal to ensure Airport operations, Port staff issued two emergency snow contracts via policy waiver. Staff are now returning to ratify the Template revised April 12, 2018. COMMISSION AGENDA Action Item No. 8f Page 2 of 3 Meeting Date: January 25, 2022 expenditures incurred. Two emergency snow contracts were issued due to resource limitations on the part of contractors. A single contractor could not provide the services, equipment, and operators required to meet the needs of the Airport for snow removal. We are requesting ratification of the two new contracts and amending one of our previously authorized contractor's (Ceccanti) costs for the equipment and operator resources they provided above their contract requirements. The extension of the emergency snow removal contracts is being requested to ensure the Airport has the necessary snow removal capacity should another winter event take place. These emergency contracts would only be needed if the labor dispute is not resolved with our previously authorized contractor. We are still waiting to receive invoices from our snow removal contractors, below are the estimated costs for the December snow events for all three contractors. December 2021 Estimated Costs Contractor Dec 2021 estimated cost Ceccanti $625,000 Scarsella $300,000 Aero $300,000 TOTALS $1,225,000 Ratification Requested Contractor Ratify Dec 2021 Ceccanti $150,000 Scarsella $300,000 Aero $300,000 TOTAL $750,000 Contract Amendments for remaining snow season Contractor Amendment Amount Ceccanti $400,000 Scarsella $250,000 Aero $250,000 TOTAL $900,000 ANNUAL BUDGET STATUS AND SOURCE OF FUNDS While the airport is always prepared to deal with a snow event, the airport has not budgeted for snow event costs for many years due to the variability. Over the past five years, the annual cost of snow events (contracted services, de-icing chemicals, staff overtime, etc.) has averaged $1.7 Template revised September 22, 2016; format updates October 19, 2016. COMMISSION AGENDA Action Item No. 8f Page 3 of 3 Meeting Date: January 25, 2022 million, with a high of $3.6 million in 2019 and a low of $113 thousand in 2018. For the most recent snow event in December 2021, we spent an estimated amount of $1.2 million on contracted snow removal services. So far, the airport has been able to absorb snow event costs within the approved budget. Excluding these costs from the budget has been part of a strategy to tighten the budget by eliminating contingency funds. Most snow event costs are included in the airline rate bases, and any excess costs are recovered through the annual settlement. Given the desire to manage airline costs through the recovery period, staff did not add snow event costs to the 2022 budget. Still, given the recent history of more regular snow events, staff will revisit the budget strategy for the 2023 budget, and may recommend inclusion of some amount. The funding source will be the Airport Development Fund. ATTACHMENTS (1) Policy Waiver Template revised September 22, 2016; format updates October 19, 2016.
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