Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8h
ACTION ITEM
Date of Meeting
August 9, 2022
DATE: July 20, 2022
TO: Stephen P. Metruck, Executive Director
FROM: Peter Lindsay, Interim Senior Manager Landside Operations
SUBJECT: Airport North Employee Parking Lot Security Contract
Amount of this request:
$1,300,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a contract for security
services to be performed at the North Employee Parking Lot (NEPL) – Seattle-Tacoma
International Airport (SEA) with an estimated value of $260,000 annually with a five-year
estimated value of $1,300,000. The initial contract will be for a one-year term with four annual
renewal options at the discretion of the Port, for a maximum term of five years.
EXECUTIVE SUMMARY
This request will permit the continuation of contracted parking guard services at the North
Employee Parking Lot (NEPL). The guards will provide security support and access control for the
operational activities at the NEPL. The lot attendants are responsible for continuous monitoring,
access control, notification of criminal and suspicious activity, controlling traffic, and customer
service. The cost of this service is included in the annual operating budget and fully recovered
from the users of the NEPL through monthly permit fees.
The purpose of the contract is to provide site security and supplemental access control staffing
for NEPL. The scope of security services includes the following core elements such as camera
surveillance, assisting customers with lockouts and battery charges, police callouts for criminal
activity, occasional foot patrols, and lot access.
The total cost for Port utilized contracted security services for the year 2021 was approximately
$175,000 and $188,000 in 2022 under the current contract. For this request, staff estimate an
annual cost of $260,000 (total cost over five years of $1,300,00). Costs related to guard services
are recovered through parking fees. The proposed expenditure will likely increase fees by $0.60.
COMMISSION AGENDA – Action Item No. _8h_ Page 2 of 5
Meeting Date: August 9, 2022
Template revised June 27, 2019 (Diversity in Contracting).
JUSTIFICATION
The North Employee Parking Lot (NEPL) is a Port-owned surface parking lot north of SEA’s airfield
in the City of SeaTac’s Riverton Heights neighborhood. NEPL provides parking for airport tenants
including airlines, dining and retail partners, air cargo operations and other service providers. To
maintain a safe operation, security and access control are needed for the lot as the lot is used all
day, year-round by employees. The contract specifications call for a constant guard presence 24
hours, 7 days a week, and 365 days per year with the following key scope elements:
• Ensure only authorized persons have access to the lot
• Assist customers when they have issues with their access cards
• Provide 24-hour surveillance of the lot
• Available security presence on-hand and ready to react to emergent issues if necessary
Diversity in Contracting
Staff have contacted the Diversity in Contracting Office which recommended a 10 percent
women and minority owned-business participation (WMBE). Previous iterations of the contract
have successfully added to the Port of Seattle’s diversity in contracting goals and the current
contract holder is a WMBE firm.
DETAILS
The NEPL is located 2.9 miles from the Airport. The lot encompasses 28.3 acres and has over
4,000 parking stalls. Three bus shelters provide seating, vending machines, and restrooms for
customers. On an annual basis, approximately 1.4 million customers are transported between
the lot and airport employment centers including air cargo facilities and the Main Terminal. The
Employee Parking bus shuttles run every 10 minutes 24 hours a day, 7 days a week, 365 days per
year with constant customer activity.
Airport Operations has contracted with local security firms for access control and safety services
since 1999 when the lot began operation. We seek to award a contract for up to five years to
the successful bidding security services provider in the form of an initial year with four, 1-year
extension options.
Scope of Work
The successful contractor shall, at a minimum, provide a single, on-duty guard for the NEPL. The
service shall be performed 24 hours per day, 7 days a week, including holidays. The contractor
will ensure only authorized personnel are allowed access to the lot, report any operational issues
to the Landside Control Center, maintain a daily log of events, and provide a weekly update to
Landside Management. Specific scope elements include:
COMMISSION AGENDA – Action Item No. _8h_ Page 3 of 5
Meeting Date: August 9, 2022
Template revised June 27, 2019 (Diversity in Contracting).
(1) Security Guard Presence – one security guard on-duty throughout the day
(2) Regular Operational Reports and Daily Log – regular communications to advise
management of lot activity, irregularities, and concerns
(3) Access Control – assist with lot access and customer service
(4) Supplemental security – enhanced patrols and security evaluations around the lot
perimeter
In sum, Airport Operations intends to continue offering guard services with increased resources
to allow flexibility and greater response for site security and public safety needs.
Schedule
Activity
August 2022
August 2022
September 2022
October 2022
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Add Port staff to perform these functions. This option would eliminate the need
for contract services for guard services in NEPL and task the Port of Seattle and SEA with the
responsibility for all site-security services.
Cost Implications:
Pros:
(1) Port staff are more knowledgeable of Port policies and procedures and Employee
Parking procedures and could answer questions and provide improved customer service
to Employee Lot customers.
Cons:
1) More expensive. The annual cost for the security contract is estimated at $175,000 -
$260,000 annually. The billed rate for the security contract is $28.95 for an officer and
$31.85 for a supervisor. The average hourly rate for a full-time parking services revenue
representative, including benefits is $39.69.
2) Disruptive to business operations. New staff would be needed to perform this new role
and many lines of business have difficulty filling existing positions. Staff are concerned
that business continuity and site security may suffer from a lack of headcount or the
inability to find qualified personnel.
3) Women and Minority Business Enterprise (WMBE) participation. The current security
contract is 100 percent WMBE. Transitioning to a Port of Seattle employment model
would eliminate the guard service contract opportunity for WMBE firms.
COMMISSION AGENDA – Action Item No. _8h_ Page 4 of 5
Meeting Date: August 9, 2022
Template revised June 27, 2019 (Diversity in Contracting).
4) Conflicting roles. There are multiple workgroups at the Port that may contest the right to
this work and further disrupt the ability to staff this vital position.
This is not the recommended alternative.
Alternative 2 – Execute a contract for security services. Consistent with existing customer
expectations and service levels since the NEPL began operation, this option would maintain the
practice of using a contract security firm for NEPL guard services.
Cost Implications:
Pros:
(1) Provide operational flexibility to supplement security needs without adding Full Time
Equivalent (FTE) employees.
(2) Security service at the NEPL is expected by major airline customers who comprise almost
90% of our customer base.
(3) Efficient use of Port funds as the open bidding process helps the business unit attain
competitive rates for services.
(4) Provides an opportunity for WMBE contract participation. The current contractor is a
WMBE firm.
(5) Historically, NEPL guard services have been provided by a 3
rd
party firm since the airport
extended employee parking operations to the site in 1999.
Cons:
(1) Variability in guard experience due to third-party scheduling needs and staffing
requirements. Although guards are typically dedicated to the operation, at times,
personnel are moved between sites.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
As an enterprise, employee parking is a cost-recovery business whereby the expenditures
necessary to operate and maintain the service are recovered directly from tenant customers and
users of the service inclusive of all necessary taxes and fees.
The cost of guard services adds approximately $0.60 per month to the Employee Parking monthly
rate. Current tenant employee parking fees are $81.00 per month.
Annual Budget Status and Source of Funds
Expenses for guard services are part of the baseline Employee Parking expense budget. If
authorized, staff would add $72,000 to Employee Parking’s annual baseline budget for a total
anticipated annual expense of $260,000 for guard services in 2023.
COMMISSION AGENDA – Action Item No. _8h_ Page 5 of 5
Meeting Date: August 9, 2022
Template revised June 27, 2019 (Diversity in Contracting).
Financial Analysis and Summary
Project cost for analysis
$1,300,000
Business Unit (BU)
Employee Parking
Effect on business performance
(NOI after depreciation)
$0.60 per month to the monthly employee parking rate
IRR/NPV (if relevant)
N/A
CPE Impact
N/A
Future Revenues and Expenses (Total cost of ownership)
Year 1
$260,000
Year 2
$260,000
Year 3
$260,000
Year 4
$260,000
Year 5
$260,000
Total
$1,300,000
ADDITIONAL BACKGROUND
None.
ATTACHMENTS TO THIS REQUEST
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
August 4, 2017 – The Commission authorized 5-year contract for NEPL security services.