Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8c
ACTION ITEM
Date of Meeting
December 10, 2024
DATE: November 25, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Eileen Francisco, Director, Aviation Project Management
Laurel Dunphy, Director, Airport Operations
SUBJECT: Common Use Self Service Kiosk Removal and Replacement (CIP# 801315)
Amount of this request:
$5,480,000
Total requested project cost:
$5,800,000
ACTION REQUESTED
Request a single Commission authorization for the Executive Director to design and construct the
Common Use Self Service Kiosk Replacement project at Seattle-Tacoma International Airport. The
total project estimated cost is $5,800,000.
EXECUTIVE SUMMARY
This project will replace forty-three (43) aging and in some cases non-functioning Common Use
Self Service kiosks (kiosks) to better meet customer demand and reduce ticketing area
congestion. The kiosks run airline Common Use Self Service applications to allow airline
customers to check-in for flights, verify passport credentials, and print boarding passes and
baggage tags. Some airlines use the kiosks to speed customer processing and supplement
customer service staff.
JUSTIFICATION
The Common Use Self Service kiosks were procured from the company ARINC in 2007, last
updated in 2015 and in need of replacement. Most of the hardware components are 15 years old
with challenging software upgrade issues. The kiosks reduce congestion at ticket counter lines
and eliminate the higher cost of assisted check in.
Diversity in Contracting
The project is utilizing an existing Indefinite Delivery Indefinite Quantity (IDIQ) Contract
(P00320886) that has an established 25% WMBE aspirational commitment associated with the
design. In partnership with the Diversity in Contracting department, this project will look for
opportunities to further increase the established commitment under this service directive. The
project intends to use Job Order Contracting with existing WMBE goal for construction and will
work in partnership with the Diversity in Contracting department.
COMMISSION AGENDA – Action Item No. 8c Page 2 of 4
Meeting Date: December 10, 2024
Template revised June 27, 2019 (Diversity in Contracting).
DETAILS
The project intends to demolish 47 kiosks and replace 43. As part of the project planning, the
project team evaluated kiosk usage and changing airline operational demand and determined
that fewer kiosks would serve the customer service needs in the terminal building and parking
garage. Along with these replacements, the project will upgrade and install the necessary
electrical and communication infrastructure to support the installation and operation of the new
kiosks. These modifications will ensure seamless functionality and integration
Scope of Work
(1) Demolish forty-seven (47) existing kiosks.
• Main Terminal (35 kiosks)
• Parking Garage (8 kiosks)
• Rental Car Facility (4 kiosks)
(2) Install forty-three (43) new kiosks and associated conduit and cabling to support the
new kiosks.
• Main Terminal (31 replacement and 2 new kiosks)
• Parking Garage (6 replacement kiosks)
• Rental Car Facility (4 replacement kiosks)
Schedule
Activity
Design start
2024 Quarter 4
Construction start
2025 Quarter 4
In-use date
2026 Quarter 2
This Request
Total Project
Design
$270,000
$590,000
Construction
$5,210,000
$5,210,000
Total
$5,480,000
$5,800,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Demolish 55 and replace 51 kiosks in new locations.
Cost Implications: $6,320,000
Pros:
(1) Replaces kiosks that have exceeded expected life cycle
(2) Provides a consistent kiosk model across the platform
COMMISSION AGENDA – Action Item No. 8c Page 3 of 4
Meeting Date: December 10, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) Exceeds Status 2 approved budget
(2) New locations will have high infrastructure costs
(3) Kiosks in this alternative may have a shorter useful life due to changes in the Airline
Business Operations.
This is not the recommended alternative.
Alternative 2 – Continue to upgrade/patch and replace kiosks when they fail completely.
Cost Implications: $11,000,000 (Expense)
Pros:
(1) Capital dollars available for other projects
Cons:
(1) Customer service negatively impacted when trying to use broken kiosks
(2) Replacing individually with expense dollars is less efficient use of resources, and overall,
more expensive.
This is not the recommended alternative.
Alternative 3 – Demolish 47 and replace 43 kiosks.
Cost Implications: $5,800,000
Pros:
(1) Stays within the Project budget
(2) Continues to provide relief for congestion at common use ticket counters where SEA is
space constrained
Cons:
(1) Does not provide consistent model across the platform
(2) May need a future project to replace the remaining kiosks if it is determined that they
need to remain in operation in the future.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$5,800,000
$0
$5,800,000
AUTHORIZATION
Previous authorizations
$320,000
0
$320,000
Current request for authorization
$5,480,000
0
$5,480,000
Total authorizations, including this request
$5,800,000
0
$5,800,000
Remaining amount to be authorized
$0
$0
$0
COMMISSION AGENDA – Action Item No. 8c Page 4 of 4
Meeting Date: December 10, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Annual Budget Status and Source of Funds
The Common Use Self Service Kiosk Removal and Replacement project (C801315) was included
in the 2024-2028 capital budget and plan of finance with a budget of $5,800,000. The funding
sources are Airport Development Fund (ADF), revenue bonds, and approximately $600,000 from
the Customer Facility Charge (CFC).
Financial Analysis and Summary
Project cost for analysis
$5,800,000
Business Unit (BU)
Terminal Building and Rental Car Facility
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)
$600,000 of capital cost would be funded with the CFC
fund.
CPE Impact
$0.01 in 2027
Future Revenues and Expenses (Total cost of ownership)
This project will not alter the maintenance and repair costs for the kiosks. The system will
continue to receive support through the existing support contracts and Port Maintenance staff,
retaining the same service levels as those for the current kiosks. The current annual maintenance
and repair cost is approximately $8,750 per kiosk.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None