Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8f
ACTION ITEM
Date of Meeting
August 13, 2024
DATE : August 5, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Eileen Francisco, Director Aviation Project Management
Darryl McKinney, Senior Manager, Security, Strategy and Intelligence
SUBJECT: Perimeter Access and Gate Enhancements (CIP# C801363)
Amount of this request:
$1,200,000
Total estimated project cost:
$4,600,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to increase the budget of the
Perimeter Access and Gate Enhancements (PAGE) project for a total estimated project cost of
$4,600,000. The amount of this request is $1,200,000.
EXECUTIVE SUMMARY
This project will reduce the risk of unauthorized fence and/or gate intrusions. This project will
also bring perimeter vehicle gates up to Port Security Standards of 12 feet high. This project
received full authorization from commission on November 14, 2023, as design efforts had just
commenced. More accurate estimates have been developed as the design has progressed to the
current 90% design development level. If approved, this authorization will allow for the
completion of the design and construction.
JUSTIFICATION
During design development, project scope became more refined. Project costs have increased
due to greater than anticipated material, equipment, and labor costs. Existing electrical capacity
required upgrading, infrastructure requirements and the amount of electrical equipment
increased. One gate location required multiple design reiterations due to the complexity of the
space for the use. This slightly increased design costs. The project budget remains within the
estimate range from the 30% estimate used when the project was brought to commission in
November 2023.
Diversity in Contracting
COMMISSION AGENDA – Action Item No. 8f Page 2 of 5
Meeting Date: August 13, 2024
Template revised June 27, 2019 (Diversity in Contracting).
A Women and Minority Business Enterprise (WMBE) aspirational goal of 10% has been
established with the Diversity in Contracting Department and will be included in the procurement
of the construction contract.
DETAILS
This project will interface with other projects and airfield operations. Continual coordination with
Airport Operations, Airlines, other Project Managers, and related Tenants will ensure the least
possible operational impact during construction.
A project labor agreement will be used for this project based on the importance of labor
continuity and the need to minimize any risk of impact to operations during construction.
Scope of Work
The PAGE project will automate three Airport Operations Area (AOA) perimeter vehicle access
gates and install access control systems, cameras, and lighting; replace three 7-foot gates with
12-foot gates and upgrade outdated equipment at the gates; replace perimeter fence and
signage to comply with Port standards; and install razor wire on existing perimeter fence along
the north and east AOA perimeter.
Schedule
Due to the additional design for the project, the in-use schedule has been pushed out into Q2
2025.
Activity
Design complete
2024 Quarter 3
Construction start
2025 Quarter 1
In-use date
2025 Quarter 2
Cost Breakdown
This Request
Total Project
Design
$31,000
$984,000
Construction
$1,169,000
$3,616,000
Total
$1,200,000
$4,600,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do nothing and leave the perimeter as is.
Cost Implications: $423,000 Expense
Pros:
(1) Reduces capital spending.
(2) Reduces construction impacts to airport/airline operations.
COMMISSION AGENDA – Action Item No. 8f Page 3 of 5
Meeting Date: August 13, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) Does not meet airport Security Standards.
(2) Does nothing to mitigate security breaches around the perimeter.
(3) Creates unanticipated expense dollars as planning and design efforts through 90%
design will need to be expensed.
This is not the recommended alternative.
Alternative 2 – Minimize gate scope to the locations required by Perimeter Intrusion Detection
System, and individually upgrade the east perimeter in the future to bring them up to current
Security Standards.
Cost Implications: $3,300,000
Pros:
(1) Reduced capital spending in 2025.
(2) Reduced construction impacts to airport/airline operations in 2025.
Cons:
(1) Additional labor costs for contactors on-boarding and mobilization.
(2) Additional escalation costs.
(3) Additional risk in less attractive contracts for bidders.
(4) Higher risk of security breaches around the AOA perimeter.
This is not the recommended alternative.
Alternative 3 – Increase the budget and complete the full scope of work.
Cost Implications: $4,600,000
Pros:
(1) Reduces safety risks, minimizes operational impacts and increases efficiencies as
coordination and construction is managed as a single effort.
(2) Minimizes time to completion, limiting exposure to future cost increases, while
delivering benefits expeditiously.
(3) Eliminates the need for unanticipated expense costs in 2024.
Cons:
(1) Additional capital expenditures.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
The project is still within the estimate range of $2,542,000 to $5,084,000 from the estimate
utilized at the previous commission authorization.
COMMISSION AGENDA – Action Item No. 8f Page 4 of 5
Meeting Date: August 13, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$3,400,000
$0
$3,400,000
Current change
$1,200,000
0
$1,200,000
Revised estimate
$4,600,000
0
$4,600,000
AUTHORIZATION
Previous authorizations
3,400,000
0
3,400,000
Current request for authorization
1,200,000
0
1,200,000
Total authorizations, including this request
4,600,000
0
4,600,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
The Perimeter Access and Gate Enhancements (PAGE) – (CIP 801363) project was included in the
2024-2028 capital budget and plan of finance with a budget of $3,400,000. The capital increase
of $1,200,000 was transferred from the Aeronautical Allowance
1
CIP C800753 resulting in no net
change to the Airport capital budget. The funding sources would be Airport Development Fund
and revenue bonds.
Financial Analysis and Summary
Project cost for analysis
$4,600,000
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
CPE Impact
$0.01 in 2026
Future Revenues and Expenses (Total cost of ownership)
Aviation Maintenance will see an increase in Operation and Maintenance Manuals (O&M) cost
for Electrical and Electronic systems and lampers to maintain cameras, access controls and
lighting (roughly 50 additional labor hours per year). Mechanical systems will see an increase in
O&M costs to maintain the gate operating system. Labor hours and parts requirements will
depend on Original Equipment Manufacturer (OEM) maintenance requirements and the
frequency of damage due to vehicles.
1
The Aeronautical Allowance is included in the Capital Improvement Plan to ensure funding capacity for
unspecified projects, cost increases for existing projects, new initiatives, and unforeseen needs. This ensures funding
capacity for unanticipated spending within the dollar amount of the Allowance CIP.
COMMISSION AGENDA – Action Item No. 8f Page 5 of 5
Meeting Date: August 13, 2024
Template revised June 27, 2019 (Diversity in Contracting).
ADDITIONAL BACKGROUND
The Airport Perimeter continues to have attempted breaches in areas where the fence is not up
to current Port Security standards. This project will mitigate this issue by upgrading perimeter
fence and gates.
ATTACHMENTS
(1) None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
November 14, 2023 – The Commission authorized the executive director to (1) authorize final
design and preparation of construction bid documents; (2) advertise, award, and execute
a major public works construction contract; (3) procurement of long lead material items;
(4) include a Project Labor Agreement.
