Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
6g
ACTION ITEM
Date of Meeting
April 23, 2019
DATE: April 15, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Wayne Grotheer, Director, Aviation Project Management
Wendy Reiter, Director, Aviation Security
SUBJECT: Lost and Found Relocation (under CIP #C800934)
Amount of this request:
$370,000
Total estimated Lost & Found project cost:
$1,900,000
Total estimated CIP project cost:
$9,164,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to proceed with design of the Lost
and Found Relocation project at Seattle-Tacoma International Airport. The amount requested
under this authorization is $370,000 out of a total estimated cost for the Lost and Found
Relocation Project of $1,900,000.
EXECUTIVE SUMMARY
The Lost and Found facility at Seattle-Tacoma International Airport (Airport) serves a crucial
operational need and provides a valuable service to Airport customers but needs more space to
do so. Currently, the Lost and Found facility has outgrown its existing space located on the
Airport Mezzanine level. The relocation to a larger space on the Baggage Claim level will not
only improve its operation, but also provide visibility to the public in a more easily accessible
area.
The Lost and Found Relocation project is a sub-project to the Employee Services Center Project
(CIP #C800934). The Lost and Found Relocation project will be designed and constructed
separately as an enabling project to the Employee Services Center, which will be the subject of
a similar Commission authorization request in the future. Approving the Lost and Found
Relocation today does not pre-suppose authorization of this future project. This project would
be completed regardless of the future project.
Approval of this request will ensure that the Port of Seattle continues to provide a high quality
Lost and Found facility at the Airport.
COMMISSION AGENDA – Action Item No. _6g___ Page 2 of 6
Meeting Date: April 16, 2019
Template revised September 22, 2016; format updates October 19, 2016.
The Employee Services Center Project (CIP #C800934) was included in the 2019-2023 capital
budget and plan of finance as a business plan prospective project with a total budget of
$8,764,000. The budget increase of $400,000 was transferred from the Aeronautical Allowance
(CIP #C800753).
The Port recently completed through a separate action the selection of a new operator for the
Lost and Found facility. In 2018 the previous operator ceased operations. To continue operating
the facility, the Airport hired temporary staff and began the procurement of a new operator.
Hallmark Aviation assumed the Lost and Found operation at Sea-Tac on April 15, 2019 as the
new operator.
JUSTIFICATION
The single, centralized Lost and Found operation at the Airport provides a one-stop service for
customers and employees. The Lost and Found operation consists of a full range of services
related to lost items at the Airport. The facility works with people who have lost items, searches
for recorded owners, contacts owners and returns lost property, and transfers items if
unclaimed by the owner. The facility also maintains detailed records for each item lost at the
airport, including the TSA checkpoints, and proactively works to reunite owners with their
belongings.
The Lost and Found operation must maintain adequate control, accountability, and adherence
to established state laws, policies, and procedures. In 2018, the Airport’s Lost and Found facility
received over 27,000 items. The staff has maintained a positive record of providing outstanding
service to customers and has achieved a nearly 50 percent recovery rate to reunite customers
with lost or left-behind items. In compliance with Washington state laws, Lost and Found staff
securely store lost items for 30 days before disposition. Unclaimed items are donated to local
registered charitable organizations. High-value unclaimed items are transferred to the Port of
Seattle Police Department where they are auctioned off and the proceeds returned to the Port.
Given the rapid growth at the Airport, the current Lost and Found facility is unable to effectively
process these items in the footprint of the space it currently occupies. While relocating the
facility from the current Airport Mezzanine Level to the baggage claim will reduce
approximately 1800 square feet of public seating space, it will improve the Lost and Found
facility’s visibility and accessibility to the public in exchange.
As previously stated this project is an enabling project to the new Airport Employee Services
Center and must be completed before that project can be constructed. The Airport Employee
Services Center will provide centralized badging, training, and parking services for airport
employees and will be built on the Mezzanine Level of the Airport.
COMMISSION AGENDA – Action Item No. _6g___ Page 3 of 6
Meeting Date: April 16, 2019
Template revised September 22, 2016; format updates October 19, 2016.
Diversity in Contracting
The project manager will work with the Diversity in Contracting Department to determine
participation opportunities and set goals for women and minority business enterprises (WMBE)
attainment. These affirmative efforts are in accordance with Resolution No. 3737.
DETAILS
The project will:
(1) Design and build a new facility to maintain a reliable Lost and Found service to
customers and to airport business partners.
(2) Improve the customer experience by providing access-coded pick-up lockers for off
hours.
(3) Provide office and storage space, a public facing counter, and other necessary items to
maintain compliance with Washington state law.
(4) Relocate the Lost and Found facility from its current mezzanine location between the
airport employee credential and training centers to the baggage claim window wall
across from carousels 13 and 14.
(5) Create new operational efficiencies using powered high-density shelving, which is an
automated storage and retrieval system. The use of this type of shelving will not only
optimize the facilities floor space and vertical space, but also provide ergonomic
solutions to enhance productivity.
(6) Improve the Lost and Found facility’s accessibility to the public by relocating it to the
baggage claim level.
(7) Be an enabling project to the Airport Employee Services Center; it must be completed
before that project can begin construction.
(8) Improve work flow by updating utilities and facilities. This efficiency will improve the
customer experience.
Scope of Work
This facility will provide the appropriate amount of space to accommodate operational needs
for employees as well as improved customer service. After-hours drop-off storage space and
pick-up lockers with code access will add efficiencies to both the operations and customer
experience.
The scope will include the following:
(1) Construct a new space in Baggage Claim;
(2) Construct a new Heating Ventilating and Air Conditioning system to supply the new
facility and the surrounding area;
(3) Construct electrical and communications for the new facility, including access control
and security;
(4) Construct plumbing for a sink in the new facility;
(5) Construct after-hours drop-off storage space;
(6) Install pick-up lockers with access codes for after-hour pick-ups; and
COMMISSION AGENDA – Action Item No. _6g___ Page 4 of 6
Meeting Date: April 16, 2019
Template revised September 22, 2016; format updates October 19, 2016.
(7) Create new operational efficiencies using powered high-density shelving.
Schedule
2019 Quarter 2
2019 Quarter 4
2020 Quarter 2
2020 Quarter 4
Cost Breakdown for Lost and Found Project
This Request
Total Project
Design
$370,000
$370,000
Construction
$1,530,000
$1,530,000
Total
$1,900,000
$1,900,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Three options were considered as follows:
Alternative 1 – Do not relocate Lost and Found
Cost Implications: $0
Pros:
(1) This alternative will not require additional capital spending.
Cons:
(1) This alternative would leave the Lost and Found facility on the Airport Mezzanine level
in the middle of a proposed new Employee Services Center. This would complicate
both the provision of employee services as well as reuniting the traveling public with
lost items due to its out-of-the-way location and small size to accommodate today’s
operation.
(2) This alternative will not address operational inefficiencies.
(3) This alternative will not allow for improved customer service or employee safety.
This is not the recommended alternative.
Alternative 2 – Relocate Lost and Found to an existing smaller space
Cost Implications: $1,500,000
Pros:
(1) This alternative would cost less than Alternative 3.
(2) This alternative would make use of a vacant space at the Airport.
Cons:
(1) This alternative does not allow for the additional space needed to function effectively
and safely.
COMMISSION AGENDA – Action Item No. _6g___ Page 5 of 6
Meeting Date: April 16, 2019
Template revised September 22, 2016; format updates October 19, 2016.
(2) This alternative does not allow for the additional space needed at the service window
for public queuing.
This is not the recommended alternative.
Alternative 3 – Relocate Lost and Found to a new larger space in Baggage Claim
Cost Implications: $1,900,000
Pros:
(1) This alternative will allow for the additional space needed for efficient, safe
operations.
(2) This alternative will allow for improved visibility to the public.
(3) This alternative will allow for 24-hour retrieval of property by adding after-hour
lockers.
(4) This alternative will add additional facility space, which is much needed at the Airport.
Cons:
(1) This alternative will be more costly than Alternatives 1 and 2.
(2) This alternative will build out an enclosed space in the baggage claim that was once
public seating.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE for CIP #C800934
Original estimate
$7,264,000
$0
$7,264,000
Previous changes – net
$1,500,000
$1,500,000
Current change
$400,000
$400,000
Revised estimate
$9,164,000
0
$9,164,000
AUTHORIZATION
Previous authorizations for Lost & Found
$100,000
0
$100,000
Current request for authorization for Lost &
Found
$370,000
$370,000
Previous authorizations for Employee
Services Center
$282,000
$282,000
Total authorizations, including this request
$752,000
0
$752,000
Remaining amount to be authorized
$8,412,000
$0
$8,412,000
Annual Budget Status and Source of Funds
The Employee Services Center Project (CIP #C800934) was included in the 2019-2023 capital
budget and plan of finance as a business plan prospective project with a total budget of
$8,764,000. The $400,000 budget increase was transferred from the Aeronautical Allowance
COMMISSION AGENDA – Action Item No. _6g___ Page 6 of 6
Meeting Date: April 16, 2019
Template revised September 22, 2016; format updates October 19, 2016.
(CIP #C800753) and was due to the increase in square footage of the facility. The funding source
will be future revenue bonds.
Financial Analysis and Summary
Project cost for analysis
$9,164,000
Business Unit (BU)
Terminal Building
Effect on business performance
(NOI after depreciation)
NOI after depreciation will increase
IRR/NPV (if relevant)
N/A
CPE Impact
$0.02 in 2022
Future Revenues and Expenses (Total cost of ownership)
This will be determined during design.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None