8f. Memo

Baggage Claim 15 and 16 Replacement

AGENDA MEMORANDUM                        Item No.          8f 
ACTION ITEM                            Date of Meeting      October 24, 2023 

DATE:     October 13, 2023 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Eileen Francisco, Director Aviation Project Management 
Keri Stephens, Director Aviation Facilities and Capital Programs 
SUBJECT:  Baggage Claim 15 & 16 Replacement Project Construction Authorization (CIP
Amount of this request:              $10,658,000 
Total estimated project cost:         $14,325,000 
Request Commission authorization for the Executive Director to (1) advertise, award, and
execute a major construction contract for the Baggage Claim 15 & 16 Replacement project at
Seattle-Tacoma International Airport; (2) use Port crews to assist in the completion of the work;
and (3) include a Project Labor Agreement (PLA) for the project. The amount requested under
this authorization is $10,658,000 for a total authorization of $14,325,000. 
Baggage claims 15 and 16 are the oldest claim devices which were originally installed in 1975-
1985 and rebuilt in 1998. The useful life for a flat plate device is 15 years and multiple
components are showing signs of needing replacement. The existing devices also have had
increasing maintenance and reliability issues. The intent of this project is to replace the existing
devices with slope plate devices to be consistent with the rest of the baggage claim and improve
The existing baggage claim 15 & 16 are flat plate devices and are well beyond their useful life of
15 years. They are both outdated, multiple components are showing signs of needing
replacement, and require customized parts for repairs. Replacement parts for these devices are
not readily available due to the age and have a 2–3-week lead time for fabrication. If the
Maintenance shop does not have the parts on hand or there are too many part failures, then the
claim device will be unavailable until the parts are received. Unexpected claim outages due to
failure are a direct impact to both Airline operations and the travelling passenger experience.
New devices are quieter and have better aesthetics while also being more energy efficient with
improved controls. 

Template revised January 10, 2019.

             COMMISSION AGENDA – Action Item No. 8f                                   Page 2 of 5 
Meeting Date: October 24, 2023 
This project will also solve a safety concern in the bag well by installing the new claim input belts
closer to the existing wall to allow for a wider tug driving lane. This creates space for the airline
employees to drop off baggage onto the claim device input belt. 
An additional benefit of the project is 1,000 square feet of tenant space build out in the bag claim
area that will meet our tenant business needs. 
Diversity in Contracting 
There will be a five percent Women and Minority Business Enterprise (WMBE) aspirational goal
for this project. 
The project will replace the existing baggage claim 15 & 16 with updated slope plate devices. This
includes all feed conveyor, fire security doors, and controls. The project will also build out 1,000
square feet of move in ready tenant lease space.  Total project costs are estimated to be
$14,325,000 with $3,667,000 previously authorized for the design phase and current request of
$10,685,000 for the construction phase. 
Scope of Work 
The scope of work will include the following: 
(1)   Design and replace baggage claims 15 & 16 with new slope plate devices. 
(2)   Modify existing HVAC to allow for conveyor right of way. 
(3)   Patch wall penetrations for existing baggage claim 15 & 16 devices (4 locations). 
(4)   Reconfigure feed conveyor to transport baggage from above. 
(5)   Improve bag well tug traffic safety by moving the drop off belt closer to the wall for both
claims, creating a wider drive lane; and 
(6)   Create new tenant lease space for future tenants. 
Construction on Baggage Claim 15 & 16 cannot begin until current North Main Terminal
Redevelopment Project is complete in the north baggage claim area, currently scheduled for Q3
2024. In addition, current long lead times for conveyor equipment result in early procurement
in order to have all equipment on site before construction begins. The construction of the claim
devices will be sequences such that only one claim device is out of service at a time to minimize
impacts to operations and passenger experience. 
Advertise for Construction Bids                   2024 Quarter 1 
Procure Long Lead Items                        2024 Quarter 2 
Construction start                                2024 Quarter 4 
In-use date                                       2025 Quarter 3 

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

             COMMISSION AGENDA – Action Item No. 8f                                   Page 3 of 5 
Meeting Date: October 24, 2023 

Cost Breakdown                                     This Request           Total Project 
Design                                                           $0             $3,667,000 
Construction                                           $10,658,000            $10,658,000 
Total                                                        $10,658,000             $14,325,000 

Alternative 1 – Do not proceed with this project. 
Cost Implications: Approximately $1,500,000 
(1)   Lowest cost alternative. 
(2)   No construction in the bag claim area and no impact to claim capacity. 
(1)   Equipment condition will continue to be a concern with an increasing risk of failure. 
(2)   Increased risk over time of equipment failure which impacts Airline operations and
travelling passenger experience. 
(3)   No improvement to bag well operation safety conditions. 
(4)   Does not add tenant lease space. 
(5)   The cost for soft cost, design and notebook development would need to be expensed. 
This is not the recommended alternative. 
Alternative 2 – Replace claims 15 & 16. 
Cost Implications: $14,325,000 
(1)   Replaces the oldest baggage claim devices to reduce maintainability and increase
(2)   Increases tug traffic safety in the bag well. 
(3)   Creates more tenant lease space. 
(1)   Impact to operations while replacing. 
This is the recommended alternative. 

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

             COMMISSION AGENDA – Action Item No. 8f                                   Page 4 of 5 
Meeting Date: October 24, 2023 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
Original estimate                                $11,000,000               $0     $11,000,000 
Budget increase                                 $3,325,000              $0      $3,325,000 
Revised estimate                              $14,325,000              $0    $14,325,000 
Previous authorizations                          $3,667,000               $0      $3,667,000 
Current request for authorization               $10,658,000               $0     $10,658,000 
Total authorizations, including this request      $14,325,000               $0     $14,325,000 
Remaining amount to be authorized                    $0             $0             $0 

Annual Budget Status and Source of Funds 
This project, CIP C801127, was included in the 2023-2027 capital budget and plan of finance with
a budget of $14,325,000. The funding sources will be the Airport Development Fund (ADF) and
revenue bonds. This project received Majority-In-Interest (MII) approval from the airlines on
August 24, 2022. 
Financial Analysis and Summary 
Project cost for analysis              $14,325,000 
Business Unit (BU)                  Baggage 
Effect on business performance    NOI after depreciation will increase due to inclusion of
(NOI after depreciation)             capital (and operating) costs in airline rate base. 
IRR/NPV (if relevant)                N/A 
CPE Impact                       $.05 in 2026 
Future Revenues and Expenses (Total cost of ownership) 
With both claim devices being well beyond their 15-year  useful life span  and existing
maintainability concerns, there would be no long-term savings by going with the alternative
option and not proceeding with the project. The systems also run the risk of complete failure due
to age which would result in Airline operations and passenger experience impacts. 
(1)   Presentation slides 

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

             COMMISSION AGENDA – Action Item No. 8f                                   Page 5 of 5 
Meeting Date: October 24, 2023 
September 27, 2022 – The Commission authorized the Executive Director to design and
prepare construction documents for the Baggage Claim 15 & 16 Replacement Project in
the amount of $3,667,000. At that time, the total estimated project cost was $14,325,000. 

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


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