COMMISSION
AGENDA MEMORANDUM
Item No.
ACTION ITEM
Date of Meeting
DATE:
August 20, 2024
TO:
Stephen P. Metruck, Executive Director
8c
September 10, 2024
FROM:
Mike Tasker, Director, Aviation Maintenance
Eric Schaefer, Senior Manager, Aviation Maintenance
Dan Alter, Fleet Manager, Aviation Maintenance
Louis Ekler, Fleet Assistant Manager
SUBJECT: Procurement Authorization for 2024 Aviation Fleet Purchases
Amount of this request:
Total estimated project cost:
$3.979 M
$3.979 M
ACTION REQUESTED
The Aviation Maintenance Fleet Team is requesting Commission authorization for the Executive
Director to execute contract(s) for acquisition of approximately sixty-two (62) fleet vehicles, fleet
equipment, or fleet tools for approx. $3.979M. This authorization would allow for procurement
of fleet that have been approved in the capital budget. This equipment would support
operational needs, changing technological standards, improved safety systems, and aligns with
the strategy set forth in the Sustainable Fleet Plan, and the Century Goal Agenda
EXECUTIVE SUMMARY
Aviation and Corporate Division Fleet Replacement Program(s) included the acquisition of
approximately sixty-two (62) fleet assets to replace sixty-three (63) aging assets in support of
Aviation Division (C801341) and Corporate Division's (C801414) operational needs. All assets
were planned for in the 2023 and 2024 Fleet Replacement Plan. The Aviation Maintenance Fleet
Team is requesting Commission authorization for the Executive Director to execute contract (s)
for the acquisition of approximately sixty-two (62) fleet assets, streamlining the acquisition
process, while utilizing strategic sourcing and fleet management "best practices."
JUSTIFICATION
The Port of Seattle maintains a Fleet of about 919 assets on the Aviation side. This authorization
will allow the Port to replace ageing assets that are beyond useful life, procure added assets to
support added FTEs and procure small capital tools to support changing job demands.
Template revised January 10, 2019.
COMMISSION AGENDA - Action Item No. 8c
Meeting Date: September 10, 2024
Page 2 of 4
This request covers a variety of equipment from Forklifts, AVM equipment and vehicles, to Police
cars. The approval will allow for more fuel-efficient vehicles to be procured including the start of
adoption of EVs for Police and the OPS AOS team which are some of the highest gasoline fuel
users at the Port.
Diversity in Contracting
After speaking with the diversity in contracting team, we found that setting a WMBE
subcontracting goal for these contracts is not feasible at this time. However, if opportunities
to purchase directly to WMBE vendors or suppliers come up, we are committed to seeking
their pricing.
DETAILS
Fleet equipment being replaced is aged and obsolete and often have more effective options
available. This request authorizes procurement of equipment and vehicle that have already been
approved in budget request. This request is for small capital funded items and does not include
large capital or expense funded Fleet items.
Schedule
Commission construction authorization
In-use date
Q4 2024
Q4 2024 through Q4 2025
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 - Procure equipment that will have charging infrastructure in place.
Cost Implications: Reduces initial capital cost by $1.2M, with increased spend on repair,
maintenance, and equipment downtime.
Pros:
(1)
(2)
Cons:
(1)
(2)
(3)
Equipment would be procured that would align with Port Century Goals.
Reduce the need to accelerate replacement of equipment that won't meet 2040 Port
Century goals.
EV infrastructure has taken four plus years for simple installations, deferral would put
replaced assets extremely far beyond typical life cycle.
Equipment being replaced is beyond useful life which puts additional operational
constraints on users of equipment.
Deferral of old equipment and vehicles not will still be used and have an increased
emission footprint as comparted to new alternatives, even if new alternatives don't
meet long term goal.
This is not the recommended alternative.
Template revised June 27, 2019 (Diversity in Contracting).
COMMISSION AGENDA - Action Item No. 8c
Meeting Date: September 10, 2024
Page 3 of 4
Alternative 2 - Procure equipment that will have charging infrastructure in place. Rent and or
lease fleet equipment for items that don't meet 2040 Century Agenda goals.
Cost Implications: Reduction of capital funding by $1.2M, increase to expense funds.
Pros:
(1)
Only would buy equipment and vehicles that fit long term vision.
Cons:
(1)
(2)
(3)
(4)
Port does not have labor bandwidth to implement.
Expect short term rental cost to increase overall cost.
Budgeting not setup for short term lease or rentals.
Not all equipment being replaced can be rented or leased.
This is not the recommended alternative.
Alternative 3 - Procure equipment that align with Century Agenda goal when possible.
Cost Implications: $3.979 M spent on capital equipment.
Pros:
(1)
(2)
(3)
(4)
Cons:
(1)
(2)
(3)
Ability to exchange older, less fuel-efficient vehicles with alternative fuel source vehicles
that can accommodate the operational needs of staff, when possible
Vehicles and equipment come with advanced technology, such as increased safety and
environmentally sustainable features that will enhance the stakeholders' experience,
while protecting the environment and community.
Increased up time of equipment and reduced maintenance and repair cost.
Having equipment suited for the task.
Initial acquisition costs of fleet assets.
Lack of electrical infrastructure and electrical capacity will require added charging options to be
added along with more operational flexibility.
Some of the Fleet equipment and vehicles being approved now will need to be replaced ahead
of traditional schedule to meet 2040 goals.
This is the recommended alternative.
Template revised June 27, 2019 (Diversity in Contracting).
COMMISSION AGENDA - Action Item No. 8c
Meeting Date: September 10, 2024
Page 4 of 4
FINANCIAL IMPLICATIONS
C801341 - Cost Estimate/Authorization Summary
Capital
Expense
Total
Original estimate
AUTHORIZATION
Previous authorizations
$10,000,000
$0
$10,000,000
$4,566,602
0
Current request for authorization
$3,059,000
0
$4,566,6
02
$3,059,000
Total authorizations, including this request
$7,615,602
0
$7,615,602
COST ESTIMATE
Annual Budget Status and Source of Funds
CIP C801341 - AV Small Capital Purchases was included in the 2024-2028 capital budget and plan
of finance with a budget of $10,000,000. C801341 will be funded by the Airport Development
Fund.
Financial Analysis and Summary
Project cost for analysis
Business Unit (BU)
Effect on business performance
(NOI after depreciation)
IRR/NPV (if relevant)
CPE Impact
$10,000,000
ADMIN
NOI after depreciation will increase due to inclusion of
capital (and operating) costs in airline rate base.
N/A
$0.05 in 2026
ATTACHMENTS TO THIS REQUEST
(1)
Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None
Template revised June 27, 2019 (Diversity in Contracting).