Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8e
ACTION ITEM
Date of Meeting
November 21, 2023
DATE: October 24, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Mike Tasker AVM Director,
Eric Schaefer AVM Senior Manager, Daniel Alter AV Fleet Manager
SUBJECT: Airfield Snow Equipment Replacement Budget Increase
Amount of this request:
$350,000
Total estimated project cost:
$11,970,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to Increase Funding for the Airfield
Snow Equipment Replacement Project to Allow the Completion of Procuring Airfield Snow
Equipment, in the Amount Requested of $350,000 and a Total Estimated Project Cost of
$11,970,000. (CIP# C801227).
EXECUTIVE SUMMARY
The airport completed an Invitation To Bid (ITB) for the remaining snow equipment to complete
project 106225. The cost for the remaining equipment came in higher-than-expected. The
amount requested will allow the Central Procurement Office to complete the purchase of the
remaining snow equipment which includes one airfield deicer truck, four airport brooms, and
two high speed blowers.
JUSTIFICATION
Currently SEA is preparing for the upcoming snow season with snow operator training along with
the repairs that go with our ageing snow fleet. Snow preparation starts months in advance of the
SEA FAA snow season that starts November 15
th
going through April 15
th
. The FAA snow season
requires SEA to fully prepared by the start and through the end of snow season.
Keeping the equipment going and getting operators trained is a major task that is largely
performed by AV Maintenance. Operators are trained by AV Field Crew and the many repairs are
performed by the AV Auto Mech group. This involves many late nights training and hundreds of
hours on repairs.
COMMISSION AGENDA – Action Item No. _8e_ Page 2 of 5
Meeting Date: November 21, 2023
Template revised June 27, 2019 (Diversity in Contracting).
This project was created to replace ageing Airport snow removal equipment that is less effective,
harder to maintain, and less operator friendly. The equipment being replaced varies in age from
vintage 1991 model year to 2008. This project currently is planning to utilize AIP funds to offset
some of the initial purchase price. The pricing of AIP funded equipment came back higher than
expected. The budget increase would increase the budget from $11,620,000 to $11,970,000 a
3.01% increase in project cost.
Diversity in Contracting
We worked with the Diversity and Contracting team regarding this procurement and no WMBE
opportunities were identified.
DETAILS
This increase in funding will allow us to complete procurement for the remaining seven (7) pieces
of snow equipment that have been approved for replacement. This includes replacing three 1991
Oshkosh blowers with two (2) new high speed snow blower systems, one (1) 1991 Oshkosh deicer
truck, and four (4) 2008 MB brooms.
If the Port accepts the ITB proposals venders expect equipment delivery to be 18 plus months
away from PO issuance.
The snow removal equipment being replaced have all out lived their traditional equipment life
span. New equipment being procured is more capable and will increase snow removal ability.
All this equipment will run on renewable diesel, follows the Fleet Sustainability guidelines, and
aligns the port to meet Century Agenda goals related to emissions standards.
Schedule
Activity
Commission authorization
2023 Quarter 4
PO issuance
2023 Quarter 4
Equipment Arrives
2025 Quarter 3
In-use date
2025 Quarter 3
ALTERNATIVES AND IMPLICATIONS CONSIDERED
COMMISSION AGENDA – Action Item No. _8e_ Page 3 of 5
Meeting Date: November 21, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Alternative 1 – Eliminate use of AIP funds to increase vender competition, require delivery within
one year, and increase budget for project 106225 by $1.75M
Cost Implications: Project would increase by $1,750,000 and the Port would need to cover the
AIP funded portion of $3,000,000.
Pros:
(1) Procured equipment could arrive within one year by eliminating AIP equipment
requirements.
Cons:
(1) Requires redoing procurement process.
(2) Cost could increase when rebid.
(3) Adds four to five months to procurement process.
(4) Requires Port to change scope with FAA and AIP funds which takes away credibility for
future AIP funded projects.
This is not the recommended alternative.
Alternative 2 – Reduce scope by reducing number of equipment being replaced.
Cost Implications: Initial project cost would be left as is, but the scope would be reduced by 1
broom. This would push needed procurement of equipment to a future year and possible cause
issues with fleet consistency as the equipment could vary.
Pros:
(1) Could allow us to stay within current set budget.
Cons:
(1) Requires redoing procurement process.
(2) Cost could increase when rebid.
(3) Adds four to five months to procurement process.
(4) Does not replace all previously planned equipment.
(5) Requires Port to change scope with FAA and AIP funds which takes away credibility for
future AIP funded projects.
This is not the recommended alternative.
Alternative 3 – Increase funding for project 106225 by $350,000 to procure remaining snow
equipment.
Cost Implications: Increase by $350,000
Pros:
(1) Obsolete equipment will be replaced.
(2) Can issue PO quickly as solicitation has already occurred.
Cons:
(1) Increased budget cost.
COMMISSION AGENDA – Action Item No. _8e_ Page 4 of 5
Meeting Date: November 21, 2023
Template revised June 27, 2019 (Diversity in Contracting).
(2) Longer lead times for AIP funded equipment means waiting about 1.5 to 2 years for
equipment once PO is issued.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$8,620,000
$0
$8,620,000
Previous changes – net
$3,000,000
0
$3,000,000
Current change
$350,000
0
$350,000
Revised estimate
$11,970,000
0
$11,970,000
AUTHORIZATION
Previous authorizations
$11,620,000
0
$11,620,000
Current request for authorization
$350,000
0
$350,000
Total authorizations, including this request
$11,970,000
0
$11,970,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project, CIP 801227, was included in the 2023-2027 capital budget and plan of finance with
a budget of $11,620,000. A budget increase of $350,000 was transferred from the from the
Aeronautical Allowance CIP C800753 resulting in no net change to the Airport capital budget. The
funding sources would be grants, airport development fund and revenue bond. The Airport
Improvement Plan entitlement grant funding is approved at $4,000,000.
Prices came back higher than expected this can be attributed to inflation and a reduction of
competition in the AIP funded snow equipment area. In the recent past, AIP funded snow
removal equipment has primarily been won by the two vendors. Recently one of the two vendors
is no longer providing Airport snow removal equipment.
Aviation Maintenance does not anticipate any significant increase in operating expense because
of this procurement. The total number of pieces of equipment will be like the existing fleet and
will have reduced repair cost during the three-year warranty period.
Financial Analysis and Summary
Project cost for analysis
$11,970,000 (rate base cost of $7,970,000)
Business Unit (BU)
Airfield Movement Area
Effect on business performance
(NOI after depreciation)
NOI after depreciation will increase due to inclusion of
capital (and operating) costs in airline rate base.
IRR/NPV (if relevant)
N/A
COMMISSION AGENDA – Action Item No. _8e_ Page 5 of 5
Meeting Date: November 21, 2023
Template revised June 27, 2019 (Diversity in Contracting).
CPE Impact
$.05 in 2026
ATTACHMENTS
None.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
January 24
th
, 2023 – The Commission approved authorization for the Executive Director to (1)
increase project budget by $3,000,000 and (2) execute contracts to purchase four (4)
additional pieces of snow removal equipment to project 106225 under CIP 801227. This
request increases the project 106225 from $8,620,000 to $11,620,000.
March 8th, 2022 – The Commission authorized for the Executive Director to Execute One or
More Procurements, in the Estimated Amount of $8,620,000 to Replace Airfield Snow
Removal Equipment.
