PORT OF SEATTLE

MEMORANDUM

DATE: October 19, 2011

Budget to Support Airline Technical Representative Activities

Amount of This Request: $0 Source of Funds: Airport Development Fund

State and Local Taxes Paid: Not applicable Jobs Created: Not Applicable

Total Contract Value: $1,950,000

ACTION REQUESTED:

Request Commission authorization for the Chief Executive Officer to execute an amendment to

will allow the ATR to continue to perform work well into 2012 related to large airline

realignment projects that are necessary due to airline mergers and consolidations, perform work

to improve the Federal Inspections Services facilities to improve the international passenger

arrival area, and for other projects that were not anticipated in 2009 when the contract was

originally executed. A new ATR contract will be advertised and publicly competed during 2012

to replace the existing contract. If additional funding of $350,000 is not provided through this

amendment, the current ATR contract will expire in early 2012 because the initial funding

authorization of $1.6 million will be exhausted. This will negatively impact the ongoing capital

projects at the Airport in 2012.

BACKGROUND:

ATR functions have been useful at large airports such as Washington DC, Miami, Atlanta,

Chicago, Detroit, and Denver. This function has also been employed at Sea-Tac to successfully

facilitate implementation of Airport capital programs by ensuring timely involvement by the

airlines. In addition, the ATR coalesces the independent, and often competitive, views of the

over two dozen airlines that operate at the Airport into a unified position that our Airport staff

can respond to in an effective manner in order to keep projects moving forward to ultimately

benefit all airlines and our region overall.

AMENDMENT JUSTIFICATION:

The ATR contract value was established at $1,600,000 in 2009 based on assumptions made

to occur in the South Satellite and possibly Concourse A; and the $30-50 million Electrified

Ground Service Equipment program. All of these projects require substantial intra-airline

coordination performed by the ATR and will benefit from continued continuity of the ATR

personnel during the ongoing formulation and design period.

On March 4, 2009, the Port executed the current ATR consultant contract following a

competitive process. According to the initiating commission memo dated February 24, 2009, the

contract time was established to match the time frame until the new Statutory Lease and

Operating Agreement (SLOA) is negotiated and executed with all the airlines in late 2012 (to

take effect in 2013). While the ATR will not be paid by the Airport to support the expense

portion of supporting airlines during the lease negotiations, it will be used by the Port to validate

Maintaining the continuity with the existing ATR well into 2012 will help assure cooperation

among airlines remains effective during this important time. This amendment will provide

sufficient funding to maintain continuity as the large new projects at the Airport are formed and

solidified to get design underway. Based upon anticipated spend rates for the ATR, this

amendment will allow ample time for the Airport to publicly compete a new ATR contract to be

initiatied in the latter half of 2012.

FINANCIAL IMPLICATIONS:

Impact on CPE is negligible, near zero, for this authorization. Forecasted CPE impacts are

reported within the various capital authorization and annual budget requests that are presented to

Commission.

ENVIRONMENT AND SUSTAINABILITY:

The project reviews that the ATR performs include LEED and other sustainability efforts to

ensure the projects are as ‘green’ as they practically can be.

STRATEGIC OBJECTIVES:

alternative to the airlines desire to move capital improvement projects forward in a timely and

possible a CPE without sacrificing overall Airport needs. A low CPE is facilitated by the ATR’s

and Port staff’s efforts to seek operational solutions before capital improvement solutions are

solidified. This practice most often results in a mix of lower project costs and instituting the

latest thinking in operational practices.

TRIPLE BOTTOM LINE SUMMARY:

This action supports the community by providing the Airport with adequate and modern capacity

to serve the various airline customers, which in turn supports jobs and a stable economy. The

work of the ATR helps to insert green practices into project designs, and it supports the Airport’s

desire to be responsive to both its business customers and travelers.

ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS:

recommended alternative.

Alternative 2: Do not add money to the current ATR contract and let it expire in early 2012

when funds are exhausted and move forward to compete a new contract as soon as possible.

This would necessitate a large learning curve for the new firm which would perform the work,

and would slow down the huge and complex capital program being planned, phased, and

designed at this time. The airlines would not favor this alternative, as it would disrupt continuity

and may drive up costs due to delay. This is not the recommended alternative.

OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST:

None

PREVIOUS COMMISSION ACTION:

On February 24, 2009, the Commission authorized the ATR contract for a four year period

through December 2012 and an estimated budget of $1,600,000.