Item No. 8c supp Meeting Date: October 23, 2018 Parking Revenue Infrastructure CIP #C800870 Commission Meeting October 23, 2018 Sea-Tac Airport Parking Garage Serves as Airport's front door for a significant portion of the traveling public Parking Business Strategy • Provide an exceptional customer experience in the garage by incorporating new technologies • Build brand awareness through marketing • Diversify product offerings to attract new customers and maximize revenue • Be data-driven; utilize big data to inform potential impacts and/or opportunities to parking business Business strategy guides parking program and product development 3 Parking Program Development Business strategy guides parking program and product development 4 Current Garage Issues Airport/Garage-Specific Customer Service • Size of garage • Design/layout of garage • Visual difficulty/time required to find an open stall Operational Environmental • Inability to determine available stall inventory on a real-time basis • Increased vehicle emissions in search for an open stall CIP800870 - Parking Revenue Infrastructure 8th Floor Garage Time Lapse September 12,2018 (Wed) Scope of Work Solution • Install a camera-based automated parking guidance system (APGS) throughout the parking garage (12,000+ stalls) • Install 94 Level 2 electric vehicle (eV) charging stations on Floors 4 and 7 of the garage • Upgrade electrical capacity in the garage to support project infrastructure CIP800870 - Parking Revenue Infrastructure 7 Automated Parking Guidance System Installed down center of drive lane CIP800870 - Parking Revenue Infrastructure APGS Benefits • Addresses shortcomings in customer experience and ability to find a stall in the garage 2 • Reduces environmental impacts and CO emissions • Provides operational efficiencies • Enhances safety and security • Gathers business intelligence data • Potential incremental revenue opportunities CIP800870 - Parking Revenue Infrastructure eV Charging Stations CIP800870 - Parking Revenue Infrastructure eV Charging Station Benefits • Enhances customer service • Provides centralized charging locations 2 • Reduces environmental impacts and CO emissions • Offer cost savings via integration with APGS CIP800870 - Parking Revenue Infrastructure Project Budget Project Budget Cost Construction Cost (Directs, contingencies, etc.) $11.5M PMG & Other Soft Costs $3.4M ICT (APGS procurement - Hardware, software, labor, etc.) $7.5M Project Contingency $0.5M TOTAL Estimated Project Budget $22.9M CIP800870 - Parking Revenue Infrastructure Financial Analysis Key Metrics Value Project cost $22.9MM NOI* $21.8MM NPV $2.6MM IRR 7% Payback 10 years * Cumulative incremental net operating income after depreciation over an eight-year period. Financial analysis based on incremental revenue attainable between 70% garage occupancy (threshold where customer's ability to find a stall is negatively impacted) vs. actual maximum garage occupancy of 90%. CIP800870 - Parking Revenue Infrastructure 13 Project Schedule & Funding Deliverable Project Schedule Funding Request Comm. Authorization, Design 10/2018 $10.9M APGS Vendor Selection via RFP Q2 2019 Design Complete Q1 2020 Comm. Authorization, Construction Q1 2020 Construction NTP Q2 2020 Project Completion Q2 2022 $12M CIP800870 - Parking Revenue Infrastructure