Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
8c
ACTION ITEM
Date of Meeting
February 13, 2018
DATE: February 5, 2018
TO: Executive Director Stephen P. Metruck
FROM: Michael Ehl, Director Aviation Operations
Daniel Zenk, Senior Manager, Airport Operations
SUBJECT: Memorandum of Understanding between Port of Seattle and U.S. Customs and
Border Protection
Amount of this request:
$0
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a memorandum of
understanding (MOU) and fee agreement between the Port of Seattle and U.S. Customs and
Border Protection (CBP) to fund additional officer hours at Seattle-Tacoma International
Airport, effective February 15, 2018.
EXECUTIVE SUMMARY
The purpose of this request is to enhance customer service for arriving international
passengers. Seattle-Tacoma International Airport (SEA) is one of the fastest growing
international gateway airports in the country. In 2016, international travel through our airport
increased 11% from the prior year, to almost 5 million passengers, and continued with 5.4%
growth in 2017. Since 2016, SEA has added nine new international airlines (Aeromexico,
Volaris, Xiamen, Virgin Atlantic, Eurowings, Norwegian, Aer Lingus, Air France, and Thomas
Cook) with direct nonstop service to over nine destinations.
That growth has resulted in an increasing demand for CBP staffing, but national CBP focus has
been increasingly targeted on increasing staffing at land borders rather than air and sea
gateways. When combined with the lengthy durations required to fill these positions,
sometimes as much as one year, this dynamic has created longer than desirable international
arriving passenger screening wait times. To address this issue, the Port applied for – and was
accepted into – the Reimbursable Services Program, which allows SEA to fund additional CBP
overtime hours over and above CBP’s staffing budget via a memorandum of understanding
(MOU) and a fee agreement.
The services the Port of Seattle is proposing to fund are additional overtime hours for the
current CBP staff serving our international arrivals facility at SEA, which is located in the
COMMISSION AGENDA – Action Item No. 8c Page 2 of 4
Meeting Date: February 13, 2018
Template revised September 22, 2016; format updates October 19, 2016.
airport’s South Satellite terminal. Our specific need is extra “officer hours” in the passport
control and baggage claim areas for use in the primary inspection process for commercial
airline passengers on arriving international flights. This funding may be required daily, seven
days per week at any time between 4:00 a.m. and midnight.
JUSTIFICATION
The flexibility and capacity provided by an approved MOU would allow CBP not only to handle
peak hour surges but also to support international flights that require early morning and late
evening processing. CBP staffing needs will increase later this year (2018), with several new
airline services/destinations coming online in spring and early summer, as well as the additional
staffing burdens created by the need for international flights to park remotely because of
current international arrival facility constraints.
Other Key Points:
• Over 30 airports nationwide received approval to participate in the CBP Reimbursable
Services Program (RSP) in 2017.
• Signing an MOU for reimbursable services does not obligate the CBP to provide services
beyond its staffing resource capacity and CBP Port Directors maintain control over their
staff.
• Signing an MOU does not obligate stakeholders to request the full amount of authorized
funding for reimbursable services.
• The RSP does not impact CBP’s staffing formula for hiring new officers.
• CBP must adhere to the provisions of the CBP Collective Bargaining Agreement relating to
CBP personnel and for overtime assignments which include, but are not limited to, least
cost principles. Efforts will be made by CBP to accommodate requests by the Port for
overtime, subject to such applicable constraints.
• RSP provides flexibility for the Port and CBP to add staff during peak hours or outside
regular facility hours to process international passengers.
• The budget amount will be expensed to the Port’s FIS cost center and paid for by
international airlines.
• A use of the full amount ($500,000) would translate to 2 additional 8-hour-equivalent
overtime shifts (the equivalent of two additional FTEs) per day or 4 additional 4-hour-
equivalent overtime shifts per day, and is based on ballpark assumptions of the cost of CBP
officer hours.
• The RSP provides an alternative source of funding for overtime services beyond CBP’s
appropriated budget and allows our partners to target where they desire CBP to provide
additional services.
• The MOU may be terminated for any other reason by either party upon 90 days prior
written notice to the other party.
COMMISSION AGENDA – Action Item No. 8c Page 3 of 4
Meeting Date: February 13, 2018
Template revised September 22, 2016; format updates October 19, 2016.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not enter into an agreement with CBP for additional overtime services.
Cost Implications: $0
Pros:
(1) No additional cost to the Port (airlines)
Cons:
(1) No additional efficiency or throughput at existing international arrivals facility.
(2) Most likely passenger wait times and congestion will stay similar or increase in size
from our current situation.
(3) Most likely require additional resources (expense) to manage queue and congestion in
the future.
(4) This would not achieve the airline/airport goals of providing a better customer
experience.
This is not the recommended alternative.
Alternative 2 – Enter into an agreement with CBP for overtime services.
Cost Implications: $500,000 (assuming all of 2018 budget is used)
Pros:
(1) Provides additional staff for CBP during peak and off-peak hours to increase
international passenger processing.
(2) Will decrease passenger wait times, both in corridor and on board.
(3) Will improve overall customer experience at SEA.
(4) Services provided are at the request of the Port.
(5) Port will pay for actual overtime expense used.
(6) Expense is through the FIS cost center and paid by airline revenues.
Cons:
(1) Additional cost to airlines.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
The costs associated with this MOU will be budgeted annually in the Aviation Division operating
budget. The costs will be charged to the Federal Inspection Services (FIS) cost center and
recovered from airlines through the FIS fee (per passenger fee charged to airlines with
passengers using the FIS).
Annual Budget Status and Source of Funds
For 2018 the Aviation Division budgeted $500,000 for this service. For 2019 and subsequent
years, staff will include a line item in the annual budget for services to be provided under this
MOU.
COMMISSION AGENDA – Action Item No. 8c Page 4 of 4
Meeting Date: February 13, 2018
Template revised September 22, 2016; format updates October 19, 2016.
ATTACHMENTS TO THIS REQUEST
(1) Memorandum of Understanding
(2) U.S. Customs and Border Protection “Section 481” Service Fee Agreement
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None
