Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No. 8f
ACTION ITEM Date of Meeting May 13, 2025
DATE: January 22, 2025
TO: Stephen P. Metruck, Executive Director
FROM: Mike Tasker, AVM Director, Eric Schaefer, FFSG Senior Manager, Daniel Alter, AVM
Fleet Manger
SUBJECT: Airfield Snow Equipment Replacement Budget Increase CIP801227
Amount of this request: $600,000
Total estimated project cost:
$12,570,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to increase funding for project
106225 by $600,000 to allow completion of procuring of Airfield snow equipment. Increase
authorization amount for project would go from $11,970,000 to $12,570,000.
EXECUTIVE SUMMARY
The initial procurement of eight Øveraasen RSC 250 units did not include sales or use tax because
the supplier is international. However, after further review, the Port of Seattle’s accounting team
determined that the Port is responsible for $552,000 in use tax for this acquisition. As a result,
the initial authorization is no longer sufficient to cover the total cost of the project. This request
ensures that all costs are accounted for, and the project can be completed.
JUSTIFICATION
The requested funding increase is necessary to cover the use tax associated with the
procurements of the eight pieces of snow removal equipment initially purchased. In Washington
state, use tax applies to tangible personal property or taxable services used within the state when
sales tax has not been paid at the time of purchase. This ensures compliance with state tax
obligations for goods and services utilized within Washington. The equipment in question is
essential for snow preparation at SEA during the FAA snow season, which runs from
November 15th through April 15th.
Diversity in Contracting
We worked with the Diversity and Contracting team regarding this procurement and no WMBE
opportunities were identified. All POs have already been issued for all equipment.
COMMISSION AGENDA – Action Item No. 8f Page 2 of 4
Meeting Date: May 13, 2025
Template revised June 27, 2019 (Diversity in Contracting).
DETAILS
This project uses AIP funds to offset some of the initial purchase price. The Port has already issued
POs to vendors for remaining equipment.
Schedule
Remaining equipment is expected to start arriving in September 2025. With the last piece of snow
equipment arriving mid-year 2026.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Reduce scope by reducing 1 broom from planned order. This would replace 3 of
the 4 older brooms leaving 1 older unit. Although purchase orders have been issued for the entire
scope of equipment, the Port has yet to receive four brooms, two snow blowers, and one deicer
truck. Should the Port choose to cancel any order, it will be limited to one of the undelivered
pieces of equipment.
Cost Implications: Project cost is not increased.
Pros:
(1) Allows us to stay within the current budget.
Cons:
(1) Requires changes to contracts already issued to vendor.
(2) Cost would increase when rebidding for the replacement of equipment necessary for
snow operations.
(3) Leaves 18-year-old equipment and extends the lifespan of equipment beyond its useful
life.
(4) Requires the Port to modify the scope with the FAA and AIP funds, which could undermine
credibility for future AIP-funded projects.
(5) Increases maintenance and repair requirements due to multiple generations of brooms,
leading to higher parts demand.
(6) Complicates training by introducing additional equipment styles to be trained on.
This is not the recommended alternative.
Alternative 2 – Increase funding for project 106225 by $600,000 to pay for use tax.
Cost Implications: $600,000 increase.
Pros:
(1) Enables the replacement of obsolete and unsustainable equipment.
(2) New equipment will be purpose-built, improving snow removal efficiency.
(3) Allows payment for equipment with issued purchase orders (POs).
COMMISSION AGENDA – Action Item No. 8f Page 3 of 4
Meeting Date: May 13, 2025
Template revised June 27, 2019 (Diversity in Contracting).
(4) Provides price certainty, as the contract price has already been agreed upon.
(5) Replaces older equipment that is harder to operate effectively.
(6) Simplifies maintenance and repair due to standardized equipment.
(7) Training would be simplified due to standardized equipment.
(8) Equipment will be replaced on time with equipment cost that is locked in below current
pricing.
Cons:
(1) Increase in project cost.
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 $3,350,000
0
$3,350,000
Current change $600,000
0
$600,000
Revised estimate $12,570,000
0
$12,570,000
AUTHORIZATION
Previous authorizations $11,970,000
0
$11,970,000
Current request for authorization $600,000
0
$600,000
Total authorizations, including this request $12,570,000
0
$12,570,000
Remaining amount to be authorized $0
$0
$0
Annual Budget Status and Source of Funds
This project, CIP 801227, was included in the 2024-2028 capital budget and plan of finance with
a budget of $11,970,000. A budget increase of $600,000 was transferred from the Aeronautical
Allowance CIP C800753, resulting in no net change to the Airport's capital budget. The funding
sources include grants, the airport development fund, and revenue bonds. Additionally, the
Airport Improvement Plan entitlement grant funding has been approved at $4,000,000.
Financial Analysis and Summary
Project cost for analysis $12,570,000
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 $0.03 in 2026
COMMISSION AGENDA – Action Item No. 8f Page 4 of 4
Meeting Date: May 13, 2025
Template revised June 27, 2019 (Diversity in Contracting).
Future Revenues and Expenses (Total cost of ownership)
Aviation Maintenance does not anticipate any immaterial increase in operating expenses due to
this procurement. The total number of equipment will be consistent with the existing fleet, and
the new equipment is expected to reduce repair costs during the three-year warranty period.
ADDITIONAL BACKGROUND
Snow preparation begins months before the SEA FAA snow season, which runs from November
15th through April 15th. The FAA snow season requires SEA to be fully prepared at both the start
and throughout the duration of the season.
Maintaining equipment and training operators is a major task, primarily handled by AV
Maintenance. Operators receive training from the AV Field Crew, while many repairs are carried
out by the AV Auto Mechanics group. This process involves late nights for training and hundreds
of hours dedicated to repairs.
ATTACHMENTS TO THIS REQUEST
None.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
November 21, 2023 – The Commission authorized Airfield Snow Equipment Replacement
Budget Increase- Amount approved was $350,000. Total estimate was $11,970,000.
January 24, 2023 – The Commission approved Increase Authorization for Airfield Snow
Equipment Replacement CIP 801227 in the amount of $3,000,000. Total estimate was
$11,620,000.
March 8, 2022 – The Commission approved Airfield Snow Equipment Replacement CIP
801227 in the amount of $8,620,000.00.
