Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
6f
ACTION ITEM
Date of Meeting
May 22, 2018
DATE: May 7, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Michael Ehl, Director, Airport Operations
Wayne Grotheer, Director, Aviation Project Management Group
SUBJECT: Concourse C Ramp Space Renovation Project (CIP #C800986)
Amount of this request:
$1,939,000
Total estimated project cost:
$2,100,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) complete design of the
Concourse C Ramp Space Renovation project at Seattle-Tacoma International Airport; (2)
advertise and execute a major public works contract for the renovation project; (3) proceed
with construction; and (4) use Port crews to complete the work. This single authorization is for
$1,939,000 of a total estimated project cost of $2,100,000.
EXECUTIVE SUMMARY
This project will create leasable space on the ramp level of Concourse C for use by Alaska
Airlines’ Fleet Services. As a result, space will become available on Concourse D ramp that can
be used by American Airlines’ fleet services. Both airlines fleet service operations have been
constrained and affected by airport construction.
During the construction of the Concourse D Hardstand Terminal project, it became apparent
that the Fleet Services operation on Concourse D required more ramp space than what was
going to remain. Because of operational impacts, a temporary location was found for a split
operation at the North Satellite and Alaska moved to that location in January. This North
Satellite space is slated for construction in Q2 2019 and thus is temporary.
This project’s site on Concourse C was also initially chosen for a temporary location. As site
investigations were undertaken it became apparent that more extensive work would be
required to prepare the space for occupancy. At the same time, the team determined that this
site would be appropriate for a long term location for the Fleet Services operation in
conjunction with a smaller operation remaining on Concourse D.
COMMISSION AGENDA – Action Item No. __6f__ Page 2 of 5
Meeting Date: May 22, 2018
Template revised September 22, 2016; format updates October 19, 2016.
This project was not included in the 2018 capital budget. This was due partly to the timing of
the results of a broad alternatives analysis that identified this project as the preferred long term
solution. The urgency for this project is driven by the need for the North Satellite space to be
vacated in Q2 2019.
JUSTIFICATION
The project supports the Airport’s growth and enhances flexibility by creating a renewed
leasable space. Space on the Airport’s ramp has been limited due to the rapid growth
experienced by the Airport in the past five years. New leased space is needed to sustain the
growth in airline operations. This project will bring a currently unleased space into building
code compliance. The resulting relocations from this project will reduce congestion on the ramp
and improve safety and security of operations.
The Alaska Fleet Services operation stores and prepares aircraft cabin and servicing supplies. It
provides a base for staff that utilizes a fleet of vehicles to visit and service the airline’s aircraft
while the aircraft are at the gates. Its primary needs are space for a storage space, supervisor
office, staff break room and vehicle parking spaces on the ramp.
Due to space limitations on the ramp level, American Airlines Fleet Services is currently
operating outside the building in a tent. This project will allow for American Fleet Services
operation to move inside the building on Concourse D after Alaska Airlines reduces the size of
their operation at that location.
DETAILS
This project will renovate a space on the Concourse C ramp that is currently unoccupied. The
space will be leased immediately. An Indefinite Delivery Indefinite Quantity (IDIQ) contracted
design consultant, Port Construction Services (PCS), and a major works contractor will complete
this project.
Scope of Work
The scope of this project includes work necessary to prepare a vacant space for lease and make
improvements for the tenant, including:
(1) Updating utilities including ventilation, plumbing, fire sprinklers, lighting, power, and
communications, including bringing the space up to current code.
(2) Installing new finishes, including flooring, walls and ceiling.
(3) Updating the space layout including doors and added storage.
COMMISSION AGENDA – Action Item No. __6f__ Page 3 of 5
Meeting Date: May 22, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Small Business
Port Economic Development and Aviation Project Management staffs are leveraging the
outreach and promotion of this renovation project through the PortGen program. This
targeted outreach and promotional program will help maximize small and underutilized
business interest from the local communities wanting to do business with the Port.
Schedule
Activity
Design start
Construction start
In-use date
Cost Breakdown
This Request
Total Project
Design
$439,000
$600,000
Construction
$1,500,000
$1,500,000
Total
$1,939,000
$2,100,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Expand the Alaska Cargo building to create additional space for the Alaska
Airlines Fleet Services.
Cost Implications: $5M
Pros:
(1) This option would create the additional leased space that is needed by Alaska Fleet
Services.
(2) This option would create new lease revenue for the Port.
Cons:
(1) The cost of this alternative is higher than the other options.
(2) This alternative would take away needed space from the cargo area.
(3) The schedule would not meet the needs of the Alaska Fleet Services to move into a
new space before the second quarter of 2019 due to loss of space at the North
Satellite.
(4) This alternative will not allow Alaska Airlines to vacate currently leased space on
Concourse D, which American Airlines has expressed desire in leasing.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. __6f__ Page 4 of 5
Meeting Date: May 22, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Alternative 2 – Move Alaska Fleet Services to the Transiplex location.
Cost Implications: $2.5M
Pros:
(1) This option would create the additional space that is needed by Alaska Fleet Services.
Cons:
(1) The area available at the Transiplex location does not have adequate parking
available.
(2) The schedule would not meet the needs of the Alaska Fleet Services to move into a
new space before the second quarter of 2019.
(3) This project would require the Port to reimburse the airline, as an expense, through a
Tenant Improvement project since the building owner is not the Port of Seattle.
(4) This option would not generate lease revenue for the Port.
(5) This alternative will not allow Alaska Airlines to vacate currently leased space on
Concourse D, which American Airlines has expressed desire in leasing.
This is not the recommended alternative.
Alternative 3 – Bring the Concourse C Ramp space up to current code and make it leasable for
Alaska Fleet Services as a separate project.
Cost Implications: $2,100,000
Pros:
(1) This alternative provides an additional leasable space on Concourse C, which Alaska
Airlines will use for their Fleet Services Operations.
(2) This alternative will allow Alaska Airlines to vacate currently leased space on
Concourse D, which American Airlines has expressed desire in leasing.
(3) This alternative meets the schedule requirements to move Alaska Airlines Fleet
Services operations from the NorthSTAR project area.
(4) This alternative is the least expensive.
Cons:
(1) This alternative requires capital expenditure.
(2) This alternative introduces a separate construction project to a small site that will
concurrently accommodate three other projects (North STAR, Concourse C Power
Center, and the Restroom Upgrades Projects) and will require additional coordination
efforts. Project risks are higher given this situation.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. __6f__ Page 5 of 5
Meeting Date: May 22, 2018
Template revised September 22, 2016; format updates October 19, 2016.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$2,100,000
$0
$2,100,000
AUTHORIZATION
Previous authorizations
$161,000
$0
$161,000
Current request for authorization
$1,939,000
$0
$1,939,000
Total authorizations, including this request
$2,100,000
$0
$2,100,000
Remaining amount to be authorized
$2,100,000
$0
$2,100,000
Annual Budget Status and Source of Funds
The Concourse C Ramp Space Renovation project C800986 was not included in the 2018-2022
capital budget and plan of finance. The budget was transferred from the Aeronautical
Allowance C800753 resulting in no net change to the Airport capital budget. The funding source
will be the Airport Development fund.
Financial Analysis and Summary
Project cost for analysis
$2,100,000
Business Unit (BU)
Airfield Apron
Effect on business performance
(NOI after depreciation)
NOI after depreciation will increase
IRR/NPV (if relevant)
N/A
CPE Impact
$0.01 in 2020
Future Revenues and Expenses (Total cost of ownership)
Aviation Maintenance anticipates minimal impacts to Operating and Maintenance costs for the
electrical and mechanical systems as a result of the scope of this project.
ADDITIONAL BACKGROUND
None
ATTACHMENTS TO THIS REQUEST
1. Map Addressing Locations Considered
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None