PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
6a
Date of Meeting
October 26, 2010
DATE: October 7, 2010
TO: Tay Yoshitani, Chief Executive Officer
FROM: David Soike, Director, Aviation Facilities and Capital Program
Wayne Grotheer, Director, Aviation Project Management Group
SUBJECT: Electrical Ground Support Equipment (EGSE)
Charging Stations (New Infrastructure) – CIP #C800335
EGSE Rolling Stock (New Vehicles) – CIP #C800457
This Request: $1,510,000 Source of Funds: Airport Development Fund
Total Estimated Budget: $44,410,000 Jobs Created: NA
Sales Tax Paid: $60,000 (this authorization)
ACTION REQUESTED:
Request Commission authorization for the Chief Executive Officer to: (1) prepare designs; (2)
authorize the use of Port work crews; and (3) execute and amend contracts for materials,
abatement, equipment, work, and services to move the EGSE project forward. Request initial
Commission authorization of $1,510,000 for the EGSE project that is ultimately expected to cost
approximately $44,410,000.
SYNOPSIS:
This authorization covers necessary design work to enable the staff to move forward in preparing
initial scoping documents, cost estimates, schedule phasing plans; all of which is necessary for
the detailed engagement and coordination with over two dozen passenger airlines at the Airport.
The ultimate project is envisioned to enable the replacement of approximately 330 baggage tugs,
190 belt loaders, 70 pushback tractors and other various pieces of fossil-fuel based GSE with
EGSE. The environmental goal will utilize energy efficient electric equipment, reduce use of
fossil fuel, reduce air emissions by 10,900 metric tons of Carbon Dioxide (CO2) annually, and
improve air quality for the Puget Sound Region. 10,900 tons of CO2 equates to approximately
1,500 vehicles off our public roadways.
Good coordination has already occurred with the airlines headquartered here near the Airport.
Both Alaska and Horizon Airlines have indicated a strong interest in converting from fossil fuel
GSE to EGSE. Airport staff has received proposed locations from Alaska Airlines for charging
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
October 7, 2010
Page 2 of 7
equipment at their gate areas. This authorization will enable staff to identify the best locations
for the charging stations and the ability of our Airport’s existing electrical systems to support the
equipment that would serve the electric baggage tugs, belt loaders, and pushback tractors.
This project is made up of three parts: 1) the airport electrical infrastructure within the terminal
building; 2) the charging stations just outside the terminal building within the aircraft parking
locations; and 3) the tug, loader, and tractor vehicles that are driven below the terminal building
and throughout the aircraft parking positions. In general, this authorization would enable staff to
evaluate the extent of hazardous materials near electrical infrastructure that needs to be
upgraded; purchase and install electrical meters to determine the extent of upgrades necessary;
determine the necessary size of charging station equipment; optimize layouts of equipment near
aircraft; prepare solicitations for firm pricing of chargers and electrical vehicles; perform all
necessary preliminary design necessary to cost, schedule, and analyze the project; affirm the
business case; coordinate with the many airlines involved; and move the project forward from an
infrastructure standpoint. Staff will return to the Commission to request authorization prior to
awarding major charger and vehicle procurements.
Airport staff is working with agencies to secure and utilize grants that would help support the
project. Staff will seek to maximize use of a US Department of Energy (USDOE) Clean Cities
Coalition (CCC) $5 million grant toward purchase of electrical vehicles. In addition, staff is
coordinating with the Federal Aviation Administration (FAA) Voluntary Airport Low Emission
(VALE) Program for an approximately $7 million grant toward infrastructure improvements to
support the electrical chargers.
BACKGROUND:
Most current GSE operated by airlines at the Airport are fueled by fossil fuels (Horizon Airlines
has some EGSE). They produce a significant percentage of the air emissions associated with
Airport operations. This equipment is vital to airline operations, performing a myriad of complex
and time-sensitive functions essential to the unimpeded flow of airfield operations. These
functions include moving aircraft to and from the gate, as well as loading, unloading, and sorting
of aircraft baggage, food, supplies and cargo.
Alaska and Horizon Airlines support the electrification of existing GSE and are working with the
Port to replace a majority of their fossil-fueled GSE equipment operated at the Airport. Alaska
and Horizon fleets comprise approximately 35% of the total fleet at the Airport (currently there
are approximately 600 - 800 pieces of fossil-fuel based equipment owned by all airlines and
support providers at the Airport). We anticipate that a majority of Sea-Tac airline carriers will
ultimately participate in this project through an airline consortium where the carriers lease the
EGSE vehicles from the Port and manage maintenance. A consortium lease would not be
entered into without prior Commission Authorization that is anticipated to occur next year. An
airline consortium has been leasing the fuel system and managing fuel distribution for years.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
October 7, 2010
Page 3 of 7
Electricity is a viable alternative for powering most types of GSE. Electricity is unique among
alternative fuels in that there are no vehicle tailpipe emissions. Although there is some increase
in offsite power generating station emissions (if generation is fossil-fueled) resulting from
increased demand required to recharge EGSE vehicles, conversion to EGSE is considered a very
effective emission reduction strategy. This is especially true with the high percentage of
hydroelectric power generation used in the Northwest.
As a technology, EGSE is rapidly gaining acceptance at airports around the nation. Some of the
issues surrounding electric on-road vehicles (i.e. performance and range) are not issues in the
confined airport setting. When not in use, electric motors shut down, which eliminates
unnecessary idling that occurs with gasoline or diesel engines. Therefore, the use of electricity as
a transportation fuel to power battery-powered electric vehicles is the most beneficial and
effective emission reduction strategy for this operation.
Port staff is currently determining the best way to partner with airline carriers to support the
move to cleaner GSE on the ramp. Since this equipment would require new infrastructure to
charge the EGSE, Port staff must explore options for equipping gates to accommodate new
equipment. This authorization will enable necessary preliminary design to accommodate the
infrastructure needs, charging stations, and vehicles.
PROJECT DESCRIPTION/SCOPE OF WORK:
Project Statement:
This project will provide permanent electric power, chargers, and approximately 650 EGSE
vehicles throughout the Airport to serve the passenger airlines.
Project Objectives:
Reduce annual emission of CO2 by approximately 10,900 tons per year by converting to
EGSE vehicles
Maximize use of existing infrastructure to reduce environmental impact
Minimize aircraft parking ramp-area operational impacts to airlines
Provide continuous electrical power to various charging station locations that will be in
proximity to many of the 80 existing aircraft parking gates and other areas where EGSE
vehicles will park and be charged.
Standardize design throughout the Airport to minimize installation, operation and
maintenance costs.
Reduce the net operating and maintenance cost for the airlines and Airport combined
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
October 7, 2010
Page 4 of 7
Scope of Work for this Authorization:
This initial authorization will provide for design, necessary contracts, and work by Port forces to
begin to implement the ultimate project; pre-purchase specialized equipment and materials
through competitive bid processes; and to authorize PCS to perform Regulated Materials
Management (RMM) investigations and self perform necessary associated work. Other tasks
include:
Implement and complete site investigations to map facilities and utilities
Perform hazardous material investigations and abatement
Purchase specialized equipment: for example purchase meters, install, and complete 30
day electrical load measurements of feeders to the aircraft gate parking position areas
Utilize Port and contracted crews to perform work
Prepare specifications and issue solicitation bid documents, open, and analyze them to
establish firm pricing for charging stations and various electrical vehicles to meet airline
needs (Contracts would not be executed without additional commission authorization)
Perform design (10% to 100% depending upon element of work)
Prepare and execute various contracts as necessary
Prepare, execute, amend, and/or issue service agreements as necessary to move the
project forward.
Coordinate project with other Airport or airline projects either in development or
construction
Coordinate with Aviation Properties, Operations, Environmental, Fire, and Airport
tenants when indentifying EGSE charging equipment locations
Prepare project scope of work, budget cost estimates, phasing schedules, constructability
analysis, business analyses, and other actions in order to meet airline, business and
environmental goals
Research airline equipment needs and other coordination with airlines
Return to Commission with briefings and for approvals as project progresses
STRATEGIC OBJECTIVES:
Ensure Airport and Seaport Vitality
The project provides reduced emissions at the Airport, which will improve the air quality at the
Airport, nearby communities, and the greater Puget Sound area to benefit residents, businesses,
traveling public, airlines, and tenants.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
October 7, 2010
Page 5 of 7
FINANCIAL IMPLICATIONS:
Budget/Authorization Summary
$14,410,000
$30,000,000
$44,410,000
$0
$44,410,000
$0
$1,510,000
$1,510,000
$42,900,000
Project Cost Breakdown (This Authorization) This Request
Construction - RMM, PCS, small works contractors
$300,000
Materials, Metering Equipment
$300,000
Design, Outside Professional Services
$400,000
In-house Coordination, Design, Project Management
$450,000
Sales tax
$60,000
Total
$1,510,000
Source of Funds
The Electrical Ground Services Equipment project (CIP Nos. C800335 and C800457) are
included in the 2011-15 capital budget and plan of finance as business plan prospective projects.
The funding sources include revenue bonds, FAA-VALE and USDOE-CCC grants currently
estimated at $12.725 million, and the Airport Development Fund.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
October 7, 2010
Page 6 of 7
Financial Analysis Summary
CIP Category
Renewal/Enhancement
Project Type
Renewal & Replacement
Risk adjusted Discount rate
Not Applicable
Key risk factors
Not Applicable
Project cost for analysis
$44,410,000
Business Unit (BU)
Airfield
Effect on business performance
Costs will be recovered through
various rates and charges
mechanisms: electrical energy
through utility charges;
infrastructure improvements
through terminal rents and landing
fees; and vehicles through leases.
IRR/NPV
N/A
CPE Impact
This project will increase CPE by
approximately $0.17 by 2013.
However, there will be no increase
to the 2011 – 2015 business plan
forecast as these projects are
included.
OPERATION & MAINTENANCE IMPLICATIONS:
It is anticipated that the majority of O&M costs, such as maintenance of vehicles (tires, batteries,
brakes) will be accomplished by an airline consortium or airline subcontractors while electrical
infrastructure within the terminal building, or just outside, will be maintained by Airport staff.
More detailed O&M costs will be available when project is design is completed.
ECONOMIC IMPACTS:
While the project supports local construction employment, the project does not create any
incremental economic impacts apart from supporting the existing operational economic benefits
of the Airport.
ENVIRONMENTAL/COMMUNITY BENEFITS:
The project will utilize energy efficient electric equipment, reduce use of fossil fuel, reduce air
emissions by 10,900 metric tons of CO2, and improve quality of air for the local communities
and Puget Sound Region. This project supports Airport environmental goals to improve air
quality, reduce greenhouse gas emissions and deploy technology when it can reduce energy
demand.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
October 7, 2010
Page 7 of 7
TRIPLE BOTTOM LINE SUMMARY:
This project provides a means to improve the environment, provides potential job creation in the
community, and partners with airlines and contractors to upgrade operating equipment.
PROJECT SCHEDULE:
Coordinate with airlines – Q4, 2010
Complete Preliminary Design and Issue Solicitations for Chargers and Vehicles – Q1,
2011
Return to Commission for Authority to Award Charger and Vehicle Contracts and
associated lease to airlines or consortium of airlines – Q2 through Q3 2011
Project Phased Completion – 2012 through 2013
ALTERNATIVES CONSIDERED/RECOMMENDED ACTION:
Alternative 1: Install electrical infrastructure throughout all Concourses and Satellites to provide
power to electrify fossil fuel GSE and reduce air emissions at the airport. Maximize the use of
grants to benefit both the Port and Airlines. This is the recommended alternative.
Alternative 2: Do Nothing. Should this project not go forward, the allocated Federal Grants to
the Port, will be relinquished. The Port will not realize a reduction in fossil-fuel emissions. This
is not the recommended alternative.
PREVIOUS COMMISSION ACTION:
On September 28, 2010, the Commission was briefed on the 2011 capital budget that included
the above-mentioned EGSE projects.
On September 8, 2005, the Commission was briefed on the benefit of changing from fossil-fuel
based GSE vehicles to EGSE based vehicles at Seattle-Tacoma International Airport.