Template revised April 12, 2018.

DATE: October 17, 201810/17/2018October 16, 2018

TO: Stephen P. Metruck, Executive Director

FROM: James Schone, Director, Aviation Commercial Management

ACTION REQUESTED

Request Commission authorization for the Executive Director to (1) prepare design and

construction bid documents for the Parking Revenue Infrastructure project at Seattle-Tacoma

International Airport; (2) procure required hardware, software, vendor services, licensing, and

maintenance services for an Automated Parking Guidance System (APGS); (3) use port crews and

small works contracts for preconstruction activities; and (4) initiate pre-production setup and

configuration of the APGS. The amount of this request is $10,946,171 bringing the total

form of 94 Level 2 electric vehicle (eV) charging stations.

This infrastructure will significantly improve the customer experience for those who park in the

garage by reducing time required to find a vacant parking stall. It will also reduce the

environmental impacts from those vehicles using the garage (reduction of CO

estimated at 17-20 metric tons per year) and provide numerous opportunities to increase non-

aeronautical revenues for the Airport by maximizing available garage occupancy, most specifically

the APGS’s ability to help staff fully leverage the demand-based/variable rate pricing capabilities

of the Airport’s planned online parking pre-booking/yield management system.

COMMISSION AGENDA – Action Item No. _8c___ Page 2 of 9

Meeting Date: October 23, 2018

Template revised September 22, 2016; format updates October 19, 2016.

JUSTIFICATION

The parking garage serves as the front door to the Airport for a significant portion of the travelling

public, as well as for many people coming to the Airport for meetings with tenants and staff. The

rapid growth in enplanements over the past five years, combined with the sheer magnitude of the

garage (12,100 stalls spread across eight floors), and a non-traditional V-shaped design, have

made it increasingly difficult for parking customers to find an open stall – at times even when

The best opportunity to improve the overall customer experience in the garage, reduce the

environmental impact from people looking for parking stalls, and increase non-aeronautical

revenue is the installation of an automated parking guidance system (APGS). This is a system of

cameras and lighting down each row that denotes whether a parking stall is occupied or vacant.

This system will make it much easier for a driver to find a vacant stall as soon as they enter the

garage, directing them to vacant stalls on available floors. In addition, the real-time information

provided by the system (365/24/7) will help Airport staff to know the exact status of stall

availability throughout the garage.

power supply). It also provides the opportunity for further eV stall expansion should future

demand require it.

The revenue generated from the Airport’s parking garage is forecasted to reach $76.8 million by

year-end 2018. This is the single largest source of non-aeronautical revenue and critical to funding

the infrastructure investments needed to ensure that the Airport meets the region’s air

transportation needs in the coming decades. This investment will help maintain the garage’s

competitive position in one of the most hotly contested airport parking markets in the U.S. and in

so doing, will support the growth of revenues generated by the garage.

COMMISSION AGENDA – Action Item No. _8c___ Page 3 of 9

Meeting Date: October 23, 2018

Template revised September 22, 2016; format updates October 19, 2016.

emissions. It also supports the Aviation Division strategies to provide an extraordinary customer

experience and maximize non-aeronautical net operating income.

DETAILS

1. Provide an Automated Parking Guidance System (APGS) throughout all public parking areas of

the garage (approx. 12,100 stalls): Parking Garage Floors 0 (sublevel), 1, 2, 3, 4, 5, 6, 7, 8,

adjacent over-height parking area, and parking entries.

includes a total of 94 Level 2 eV charging stations.

b. Floor 7 - Sixty-four (64) Level 2 eV charging stations, for General Parking customers

(54), and employees (10).

Floor 4.

3. Provide electrical and communications infrastructure and/or upgrades within the Parking

Garage to support the APGS and EVSE installations. This includes two electrical rooms, 480V

feeders, transformers, panelboards, 120V branch circuits, and fiber optic communications

receptacles on Floor 4 and 36 dedicated receptacles on Floor 5.

COMMISSION AGENDA – Action Item No. _8c___ Page 4 of 9

Meeting Date: October 23, 2018

Template revised September 22, 2016; format updates October 19, 2016.

To maximize small business and WMBE participation, Port staff will be providing additional

outreach efforts through the Port of Seattle’s Small Business Generator (PortGen) program. This

small business program will not only provide information about the project scope of work; it will

also provide training about the Port’s procurement processes.

Working with Economic Development Division’s Small Business Department, the Port will establish

small business and WMBE aspirational goals for this project.

ALTERNATIVES AND IMPLICATIONS CONSIDERED

Alternative 1 – Maintain the Status Quo

Cost Implications: An estimated $280,000 in costs to date would need to be expensed if this

project is not approved.

Cons:

(1) Does not provide opportunities for additional parking revenue.

(2) Does not address the parking operation’s #1 customer experience shortcoming: ease of

finding a parking stall.

(3) Does not provide any reduction of environmental impacts/CO2 emissions.

(4) Does not address the public demand and increasing use of electric vehicles by customers

and employees.

This is not the recommended alternative.

COMMISSION AGENDA – Action Item No. _8c___ Page 5 of 9

Meeting Date: October 23, 2018

Template revised September 22, 2016; format updates October 19, 2016.

Alternative 2 – Install an automated parking guidance system (APGS) in the parking garage only on

the Terminal Direct/4th floor (1,700 stalls) and install 94 Level 2 electric vehicle (eV) charging

stations for general public and Port employee use.

(reducing time required for preferred customers to find an unoccupied stall).

(3) Reduces environmental impacts/CO2 emissions for 4th Floor parking.

COMMISSION AGENDA – Action Item No. _8c___ Page 6 of 9

Meeting Date: October 23, 2018

Template revised September 22, 2016; format updates October 19, 2016.

(4) Enhances the promotion of available parking offerings and amenities and reallocates

operational staff time spent conducting nightly vehicle-based stall inventory to other

(5) Reduces environmental impacts/CO2 emissions. Will decrease CO2 emissions from

passenger vehicles by an estimated 17 to 20 tons per year when average circulation time

is reduced by one minute per driver.

(6) Supplies additional charging capacity to address the public demand and increasing use of

electric vehicles by customers and employees.

(7) Provides a “charge friendly” location for eV owners which will help remove vehicle

emissions and thereby further the Port Century Agenda objective to “Be the greenest

and most energy efficient port in North America.”

COMMISSION AGENDA – Action Item No. _8c___ Page 7 of 9

Meeting Date: October 23, 2018

Template revised September 22, 2016; format updates October 19, 2016.

requirements) from original project definition also contributed to the increase in the overall

project cost.

However, the coupon program is inherently a blunt instrument, with no ability to make price

adjustments based on garage occupancy and/or customer demand, or to obtain customer/trip

data (including duration of stay) in advance of the coupon transaction. As such, the program will

be transitioned to an online parking pre-booking system (OBS) in 2019, which will allow the

Airport to utilize yield management principles and variable rate pricing capabilities of the OBS to

better leverage available garage occupancy and maximize revenue. Yield management has

effectively been used in other travel industries (airlines, hotels, rental cars) for more than 10

years.

COMMISSION AGENDA – Action Item No. _8c___ Page 8 of 9

Meeting Date: October 23, 2018

Template revised September 22, 2016; format updates October 19, 2016.

Airport staff have found that a customer’s ability to find an open stall starts to degrade when the

many factors, including the sheer magnitude of the garage (12,100 stalls spread across eight

floors) and the non-traditional V-shaped design of the structure. As our current average peak

overnight occupancy in 2018 is approximately 54%, the assumption is that the Airport could use

OBS technology to fill the 16% in available garage occupancy before a customer experiences any

degradation in their ability to find a stall (70% - 54% = 16%).

Revenue attainable through the OBS hinges on the Airport’s ability to fully leverage available

garage inventory and sell open stalls at competitive rates to consistently achieve a garage

occupancy of 90% at all times of day. This requires the ability to monitor garage occupancy in real-

time 24/7/365, accurately forecast future occupancy, and most significantly, minimize/eliminate

account for any unanticipated drive-up customers and/or parking program participant

requirements). Without the level of precision an APGS provides, the Airport would need to scale

back the number of available stalls allocated for sale in the OBS to the 70% maximum occupancy

threshold to ensure an adequate level of service (thus reducing the ability to maximize parking

revenue).

With OBS/APGS/PRCS systems integration, the Airport is anticipated to generate an average of

$3.7 million - $6.5 million/year in incremental revenue through the utilization of the 20-25% in

available garage occupancy (90% - 70% = 20%). This revenue assumption is based on current

revenue generated from the parking coupon program, and assumed occupancy and revenue

ADDITIONAL BACKGROUND

The Airport has well-established environmental programs and is working to reduce the carbon

footprint of the Airport, its tenants, airlines, contractors, visitors, and employees. The Port’s

unoccupied stall in the garage, thus reducing vehicle emissions. Portland International Airport

COMMISSION AGENDA – Action Item No. _8c___ Page 9 of 9

Meeting Date: October 23, 2018

Template revised September 22, 2016; format updates October 19, 2016.

found that when their APGS was installed in 2007, the average driving time in their garage

decreased by 50%, from two minutes down to less than one minute.

An environmental benefit analysis indicated that an APGS would reduce passenger vehicle

emissions by providing drivers with more efficient access to available parking spots. In terms of

greenhouse gas emissions, an APGS would decrease CO

emissions from passenger vehicles by an

estimated 17 to 20 tons per year when average circulation time is reduced by one minute per

driver. Other emission benefits include reductions of carbon monoxide, nitrogen oxides, and

particulate matter within the garage.

The EVSE portion of the project includes the installation of 94 Level 2 electric vehicle (eV) charging

stations in the garage. This includes 30 Level 2 eV chargers on 4th floor for premium parking

(Terminal Direct), and 64 Level 2 eV chargers on the 7th floor for general passenger and employee

Drivers of eVs use electricity that is generated by a variety of sources, emitting 1.06 metric tons of

CO2 per EV each year, a reduction of 79%.

Increasingly, state and federal governments recognize the opportunity to realize environmental

benefits through electrified transportation. As stated in House Bill 1853, passed in the 2015 WA

legislative session, “The legislature finds that state policy can achieve the greatest return on

investment in reducing greenhouse gas emissions and improving air quality by expediting the

transition to alternative fuel vehicles, including electric vehicles.”