Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
6f
ACTION ITEM
Date of Meeting
February 27, 2018
DATE: February 20, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Jeffrey Brown, Director Aviation Facilities and Capital Programs
Wayne Grotheer, Director, Aviation Project Management Group
SUBJECT: Passenger Loading Bridges Phase 2 (CIP#C800793)
Amount of this request:
$7,700,000
Total estimated project cost:
$10,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) prepare design and
construction bid documents for the replacement of the passenger loading bridge (PLB) at Sea-
Tac Airport Gates C11, C15, and S6 and the PLB and fixed walkway at Gates C9, C18, D11, and
D4; (2) purchase seven new PLBs and four fixed walkways; (3) use Port crews and small works
contracts. The amount of this request is $7,700,000 for a total estimated project cost of
$10,000,000.
EXECUTIVE SUMMARY
Reliable, well operating passenger loading bridges are critical to airline and airport operations.
Port staff has created a prioritized list of PLBs, whose age and condition indicate a need for
replacement or refurbishment. Nine PLB’s (and associated fixed walkways) considered to be at
highest risk for failures are scheduled for replacement under this project: Gates B10, S11, C11,
C15, S6, C9, C18, D11, and D4. Funding for the replacement of Gates S11 and B10 were
approved under prior Commission action. This request will provide the necessary funding for
the seven remaining highest risk PLBs. The airlines approved this project in 2017 through a
Majority-in-Interest vote.
Staff will return to Commission as necessary to facilitate additions to the PLB renewal and
replacement program.
JUSTIFICATION
The PLBs at Sea-Tac have high utilization compared to airports with comparable annual
enplanements. In 2015, Sea-Tac processed approximately 217,000 passengers per gate, the
highest of all peer airports and well above the national average of approximately 153,000. Any
unplanned downtime due to PLB or fixed walkway failure impacts airlines and customer service.
COMMISSION AGENDA – Action Item No. _6f___ Page 2 of 6
Meeting Date: February 27, 2018
Template revised September 22, 2016; format updates October 19, 2016.
PLBs have a service life of approximately 25 years before major refurbishment or replacement
is required. Many of the parts for 25+ year old PLBs are no longer available, as a result, repair
time is extended while parts are fabricated or re-manufactured or used parts are located from
other PLB owners. Unplanned downtime caused by failure of obsolete parts can extend for
several weeks, seriously disrupting airline operations. This recently occurred (December 2017)
with gate C15 being inoperable for almost a month because of a failed, obsolete motor
generator set.
DETAILS
AV/PMG has worked in conjunction with AV Operations, AV Planning, AV Facilities and
Infrastructure, and AV Maintenance to create a prioritized list of PLBs whose age and condition
are cause for replacement or refurbishment. Gates S11 and B10 were approved for design and
construction by the Commission on February, 28, 2017, both of which are 30+ years old. Two
additional PLBs (D9 & D10) remain to be replaced, along with mid-life refurbishment of multiple
PLBs on Concourse A.
Replacement of PLBs is preferred to refurbishment as it will take gates out of service for only
three weeks while a complete refurbishment could leave the gate inoperative for up to 12
weeks.
PLBs that are 30+ years old.
1. C15 Bridge -- 1970's (A3 60/119)
2. C9 Bridge and Walkway -- 1980's (A3 44/78, 55’ walkway)
3. D11 Bridge and Walkway -- 1984 (A3 43/80, 55’ walkway)
PLBs that are 25+ years old.
1. C11 Bridge – 1992 (A2 57/84)
2. C18 Bridge and Walkway – 1992 (A3 58/110, 120’ walkway)
3. S6 Bridge – 1988 (A3 53/104)
4. D4 Bridge and Walkway – 1992 (A3 58/110, 48’ walkway)
Replacement Schedule:
1. 4Q2018: S6 & C15
2. 4Q2019: C9 & D11
3. 1Q2020: D4
4. 4Q2020: C11 & C18
*This schedule is tentative and can change due to changing conditions and priorities.
COMMISSION AGENDA – Action Item No. _6f___ Page 3 of 6
Meeting Date: February 27, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Scope of Work
(1) Design services for this scope of work will be provided under existing indefinite
delivery, indefinite quantity (IDIQ) design services contract.
(2) Purchase and installation of new PLBs, associated fixed walkway, and related
components at Gates C9, C11, C15, C18, D4, D11, and S6 along with necessary
architectural, electrical, data and mechanical infrastructure upgrades to meet new PLB
standards and current code requirements.
(3) Port Construction Services will perform work associated with preparing the
foundations upgrade or replacement and provide construction management services
for PLB installations at all gates.
(4) The new bridges will be connected to the Port’s facility monitoring system so any
malfunction that shuts the bridge down will be promptly reported to Maintenance for
faster response.
Small Business
Through Port Construction Services (PCS), small works contracts are utilized, providing a
number of small business opportunities within the project scope of work.
Schedule
Activity
Commission design authorization
Design start
Commission construction authorization
Construction start
In-use date
Cost Breakdown
This Request
Total Project
Design
$1,100,000
Construction
$6,600,000
Total
$7,700,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Status Quo: Only replace Gates S11 and B10. This work is fully funded and
currently at 30%.
Cost Implications: $2,300,000
Pros:
(1) This alternative minimizes the capital investment by only replacing the two gates
currently funded.
COMMISSION AGENDA – Action Item No. _6f___ Page 4 of 6
Meeting Date: February 27, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Cons:
(1) This option does not provide the Port dependable equipment to facilitate airline
operations; when PLB’s are out of service, it impacts the airlines, operations, and
passengers.
(2) This alternative would significantly degrade the quality of passenger experience at
Sea-Tac.
(3) This alternative would potentially lead to airlines insisting on processing departing
passengers in severely congested hold rooms on other concourses already being used
for other flights.
(4) This alternative does not provide reliable gate capacity for the increasing number of
flights.
(5) This alternative does not give airlines, tenants, and passengers a reliable gate system
to provide customer service and process guests for arrivals and departures.
This is not the recommended alternative.
Alternative 2 – Speed up the Construction Timeline (four PLB’s in 2018 and five PLB’s in 2019).
Cost Implications: $10,000,000
Pros:
(1) This alternative completes the project in less time.
Cons:
(1) Same capital investment used to complete the project, but in a shorter timeframe;
budget not spread out over multiple years.
(2) Potentially stress PCS resources to complete five replacements in 2019.
(3) Stress airline operations by having multiple gates out of service in 2019.
This is not the recommended alternative.
Alternative 3 – Replace the PLB’s on Current Timeline (four PLB’s in 2018, two PLB’s in 2019,
and three PLB’s in 2020).
Cost Implications: $10,000,000
Pros:
(1) Spreads the capital investment over more years.
(2) It allows PCS flexibility in replacement of gates.
Cons:
(1) This is the longest construction time.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. _6f___ Page 5 of 6
Meeting Date: February 27, 2018
Template revised September 22, 2016; format updates October 19, 2016.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$10,000,000
$0
$10,000,000
AUTHORIZATION
Previous authorizations
$2,300,000
$0
$2,300,000
Current request for authorization
$7,700,000
$0
$7,700,000
Total authorizations, including this request
$10,000,000
$0
$10,000,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
The Passenger Loading Bridges Project CIP#C800793 is included in the 2018-2022 capital budget
and plan of finance with a budget of $10,000,000. The funding sources will include the Airport
Development Fund and future revenue bonds.
Financial Analysis and Summary
Project cost for analysis
$10,000,000
Business Unit (BU)
Passenger Loading Bridges
Effect on business performance
(NOI after depreciation)
NOI after depreciation will increase
IRR/NPV (if relevant)
N/A
CPE Impact
$.04 in 2021
Future Revenues and Expenses (Total cost of ownership)
This is a renewal and replacement program that replaces existing equipment that is old and
dated. Replacement of the equipment will require a similar level of maintenance and an
anticipated reduced level of repairs and does not have a material impact on current Aviation
Maintenance O&M costs.
OTHER BACKGROUND
PLBs were historically predominantly owned by airlines. Over the past fifteen years or so, the
Port has increasingly taken over ownership of PLBs when they needed to be replaced in order
to provide a consistent level of maintenance and level of service for all PLBs. Currently, Alaska
is the only airline owning PLBs at Sea-Tac. Upon the completion of this project and the North
Satellite Expansion project, the Port will own and maintain all of the PLBs at Sea-Tac.
ATTACHMENTS TO THIS REQUEST
None
COMMISSION AGENDA – Action Item No. _6f___ Page 6 of 6
Meeting Date: February 27, 2018
Template revised September 22, 2016; format updates October 19, 2016.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS.
February 28, 2017 – The Commission approved $2,300,000 for the design, construction, and
purchase of PLBs at gates S11 and B10 and the fixed walkway at S11.