Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6f
ACTION ITEM
Date of Meeting
April 23, 2019
DATE: April 16, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Mike Ehl, Director, Airport Operations
Ken Warren, Program Leader, Aviation Project Management Group
SUBJECT: Air Cargo 5 Ground Boarding Facility (CIP #C801089) Authorization
Amount of this request:
$500,000
Total estimated project cost:
$550,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) authorize funding in the
amount of $500,000 for the design and construction of the Ground Boarding Facility at the Air
Cargo 5 (AC-5) hardstand; and (2) authorize Port Construction Services(PCS)to support
completion of the facility.
EXECUTIVE SUMMARY
This project will serve a two-fold purpose; first to support mitigation of NorthSTAR construction
impacts to Alaska operations and second to accommodate increased use of Cargo 5 hardstand
for multiple airline ground boarding operations. A “ground boarding” operation is when an
aircraft is not brought to a passenger loading bridge connected to the airport terminal but
embark/disembark via a mobile stairway and are then bused to the airport terminal. This is also
known as a hardstand operation. The ground boarding facility will provide a space for the
employees that service ground boarding operations to be out of the elements as they wait for
the next operation. On approval of this action request, staff will be able to design and construct
a prefabricated building with a restroom and breakroom for 15-20 airline employees.
The project will be executed as a separate CIP under the NorthSTAR program managed by the
NorthSTAR project management team. The pre-fabricated trailer will be procured using a Port
accessible, existing state contract, placed and with utilities tie-in work completed by PCS with
design support from an existing, in-place Civil IDIQ service agreement.
The facilities to be provided by this project are targeted to be operational by summer 2019.
COMMISSION AGENDA – Action Item No. ____ Page 2 of 5
Meeting Date: April 23, 2019
Template revised September 22, 2016; format updates October 19, 2016.
This project was not included in the 2019-2023 capital budget and plan of finance. A budget
was transferred from the Aeronautical Allowance C800753 and the funding source is the Airport
Development Fund.
JUSTIFICATION
This project is critical to the expansion and renovation of North Satellite. The NorthSTAR
program is in line with the Century Agenda goals of 1) Advancing this region as a leading
tourism destination and business gateway by encouraging cost-effective expansion of domestic
and international passenger and cargo service and 2) Be the greenest and most energy efficient
port in North America.
The construction project at the North Satellite will close existing gates which will need to be
relocated. It is expected that Alaska will operate multiple ground boarded flights each day at
this hardstand. Additionally, this facility is available to all airline employees who have flights
operating at the hardstand.
DETAILS
This facility and the ground boarding operations at Cargo 5 are an interim solution until the
Sustainable Airport Master Plan (SAMP) is implemented (approx. 10 years). The facilities are
required as part of the NSAT construction impact mitigation plan in the near term (summer
2019 through NSAT completion in late summer/early Fall 2021).
A pre-fabricated trailer will be set on the edge of pavement at Cargo 5. It will be connected to
site utilities to provide a break room and toilet(s) for operating employees only. It is not
intended for passenger use. No additional parking or further expansion is intended.
Scope of Work
The scope of work includes the following key elements:
• pre-fabricated modular structure (trailer) to accommodate 15 to 20 ground crew members
with weather shelter, break room, and lavatory
• facility designed to address Port concerns re: security, accessibility, durability, location
(minimum ramp footprint), and common use by airlines operating at Cargo 5
• development of a temporary solution (e.g., tent and portable toilet cabinets – short term fix
until trailer can be set and connected, included in budget as contingency) will likely be
required concurrent with execution of this scope to meet NSAT’s construction impact
mitigation plan requirements
Diversity in Contracting
Work will be executed using Small Works contracts through PCS.
COMMISSION AGENDA – Action Item No. ____ Page 3 of 5
Meeting Date: April 23, 2019
Template revised September 22, 2016; format updates October 19, 2016.
Schedule
The milestone targets for this work are as follows.
Activity
Commission authorization of project
Design complete
Obtain permit(s)
Pre-fabricated trailer procurement complete
Provide interim, temporary solution
Construction (utility tie-in) complete
In-use date
Cost Breakdown
This Request
Total Project
Design
$50,000
Construction
$500,000
Total
$550,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Relocate portion of AOA (aircraft operation area) fence and provide an open
sided shelter structure adjacent to the ramp at AC-5 hardstand with portable toilet cabinets on
the ramp.
Cost Implications: $350,000 capital; $7,000 annually
Pros:
(1) Ease of accessibility as portable toilet cabinets would be staged on the ramp
(2) No connections to utilities
(3) Flexibility – portable toilet cabinets can be moved/relocated as required by operations
Cons:
(1) Constrains already limited ramp space
(2) High possibility of relocation in future
(3) Requires relocation of the fence for shelter structure
(4) Airlines are opposed to this option
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. ____ Page 4 of 5
Meeting Date: April 23, 2019
Template revised September 22, 2016; format updates October 19, 2016.
Alternative 2 – Provide a trailer with connection to water, sewer, and power on the ramp at
AC-5 hardstand.
Cost Implications: $550,000
Pros:
(1) Ease of accessibility
(2) Provides better durability for interim period before SAMP
(3) Does not impact AOA fence
Cons:
(1) Constrains already limited ramp space
(2) High possibility of relocation in future
(3) Potentially harder to connect to utilities, which could increase cost or delay schedule
This is the recommended alternative.
FINANCIAL IMPLICATIONS
This project was not included in the 2019-2023 capital budget and plan of finance. A budget
was transferred from the Aeronautical Allowance (CIP #C800753) and the funding source is the
Airport Development Fund.
Cost Estimate
/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$550,000
$0
$550,000
AUTHORIZATION
Previous authorizations
$50,000
$0
$50,000
Current request for authorization
$500,000
$0
$500,000
Total authorizations, including this request
$550,000
$0
$550,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
The Employee Services Center Project (CIP #C801089) was not included in the 2019-2023 capital
budget and plan of finance as a business plan prospective project. The budget was transferred
from the Aeronautical Allowance (CIP #C800753) with no net change to the Aviation capital
budget
. The funding source will be Airport Development Fund.
Financial Analysis and Summary
Project cost for analysis
$550,000
Business Unit (BU)
Airfield Apron Area
Effect on business performance (NOI after depreciation)
NOI after depreciation will increase
IRR/NPV (if relevant)
N/A
CPE Impact
Less than $0.01 in 2019
COMMISSION AGENDA – Action Item No. ____ Page 5 of 5
Meeting Date: April 23, 2019
Template revised September 22, 2016; format updates October 19, 2016.
Future Revenues and Expenses (Total cost of ownership)
Provision of this facility, while overlooked during planning, will complete the ground boarding
operational set-up that was first considered and committed to with the construction of the
Concourse D Annex last year.
The Port will incur ongoing costs for regular janitorial, maintenance, and utility service of the
trailer.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None