COMMISSION AGENDA MEMORANDUM Item No. ACTION ITEM Date of Meeting DATE: September 9, 2026 TO: Stephen P. Metruck, Executive Director FROM: Peter Lindsay, Assistant Director, Airport Operations 9a October 13, 2026 SUBJECT: SEA Airport Tenant Employee Parking Security Contract Amount of this request: $6,900,000 ACTION REQUESTED Request Commission authorization for the Executive Director to execute a contract for security services in support of employee parking operations at the North Employee Parking Lot and three new leased parking lots known as Lots A, C, and M for a total estimated cost of $6,200,000 over five years. The initial contract will be for a 1-year base term with four annual renewal options at the discretion of the Port, for a maximum term of five years. Additionally, requesting $700,000 to fund & maintain existing security coverage for the duration of the RFP process and through the contract's final extension (October 2027). Total authorization requested is $6,900,000. EXECUTIVE SUMMARY On-site guard services are an expected service and best practice to safeguard tenant employees, Port of Seattle staff, and port assets supporting the airport's employee parking operation. For this procurement, guard services are proposed for the North Employee Parking Lot (NEPL) located north of the airfield and newly leased areas, specifically parking lots A, C, and M-located along International Boulevard in the City of SeaTac. Collectively, these parking facilities provide over 5,500 parking stalls and are designed to accommodate the needs of more than 18,000 airport tenants who work at SEA airport, ensuring they have reliable access to parking for the next decade. Security guards provide essential support and access control for the airport's employee parking facilities. They continuously monitor the premises, manage access, and report any criminal or suspicious activities with either on-premises surveillance or patrol surveillance. Additionally, these guards oversee traffic control and deliver high-quality customer service to our airport tenant parkers. This action seeks to award a contract for comprehensive security guard services for a duration of up to five (5) years through an RFP process. The contract will consist of an initial 1-Year term, Template revised January 10, 2019. COMMISSION AGENDA - Action Item No. 9a Meeting Date: October 13, 2026 Page 2 of 8 with options for four (4) additional 1-Year extensions based on performance and service evaluations such as dependability, customer feedback, and responsiveness. Guard service staffing is estimated at $1.2M to $1.3M annually, expenditures which are recovered through parking fees. The proposed expenditures will be absorbed within the existing phased annual rate plan, which assumes an average year-over-year increase of approximately 7.3% through 2031. Employee Parking's existing security contract (S-00321204) is scheduled to expire in October 2027. Existing funds are insufficient to support the remaining term of the contract while completing procurement and transition to a successor contract. This authorization is requesting funding to both maintain uninterrupted security services under S-00321204 and procure a new security services contract. JUSTIFICATION To maintain a safe operation, security and access control are needed for airport employee parking lots as staff anticipate constant year-round use by employees. Staffing needs call for a constant guard presence, patrol, and on-duty 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 The airport evaluates multiple factors when deciding to contract services versus assigning duties to Port employees. The primary factors that support the use of contracted services are the type of work, the need to maintain regulatory requirements or financial security, variable operational needs such as seasonality, and connectivity to other departments. This contract covers a limited range of non-specialized tasks, does not require regulatory procedures or financial transactions, and does not require close coordination with other departments for efficiency or success, making this work a preferred scenario for contracted services. Contracting also creates opportunities for small businesses and provides many operational and financial advantages for the Port. The airport can more easily adjust staffing levels of contracted employees to meet emerging needs compared to changing employee job duties or schedules. Maintaining 24-hour, 365-day coverage poses operational challenges for an in-house workforce, as staff call-outs and shortages necessitate overtime or the maintenance of redundant staffing levels to ensure continuous coverage. A vendor specializing in security services is structurally better positioned to absorb Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 9a Meeting Date: October 13, 2026 Page 3 of 8 staffing fluctuations, drawing on a broader labor pool and established relief-staffing protocols as a core part of its business model. The contracting process identifies firms with specialized training, supervision, and employee development programs that are directly tied to the security tasks, making those firms more efficient in delivering the work and avoiding the Port having to build a dedicated internal security management function solely for this purpose. Contracting gives the Port built-in performance accountability that ensures we continue to meet customer service expectations. Finally, contracting services relieves the Port of equipment acquisition and on-going maintenance requirements. Contracting non-regulatory services such as airport parking security allows Port staff to focus on regulatory safety and security, such as Aviation Security and SIDA Access Control. Diversity in Contracting Staff have contacted the Diversity in Contracting Office, which recommended a 5% 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 This request is to provide site security for the entire employee parking operation, to reduce the risk of criminal activity, provide customer assistance, and monitor access control for facility security. Some units will be located on-site while others will provide mobile patrol surveillance with a vehicle. Scope of Work The successful contractor shall provide patrol and on-duty guard services for the NEPL and Lot C. A mobile patrol guard service shall be provided to Lots A and M. The service shall be performed 24-hours, 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: (1) (2) (3) (4) Security Guard Presence - one security guard on-duty throughout the day, including a mobile patrol guard Regular Operational Reports and Daily Log - regular communications to advise management of lot activity, irregularities, and concerns Access Control - assist with lot access and customer service Supplemental Security - enhanced patrols and security evaluations around the lot perimeter Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 9a Meeting Date: October 13, 2026 Page 4 of 8 Airport Operations intends to continue offering guard services with increased resources to allow flexibility, greater response for site security, and public safety needs. Schedule Activity Commission Authorization RFP Development Solicitation Proposal Reviews Award Contract Contract Start Date 2026 Quarter 3 2026 Quarter 4 2027 Quarter 1 2027 Quarter 2 2027 Quarter 3 2027 Quarter 4 (The remainder of this page was purposefully left blank) Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 9a Meeting Date: October 13, 2026 Page 5 of 8 ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 - Add Port staff to perform these functions. This option would eliminate the need for a contract to provide guard services at Employee Parking facilities and task the Port of Seattle and SEA with responsibility for all site-security services. Cost Implications: Further analysis estimates the five-year cost to transition security services to Port employees is approximately $12.1M, compared to $6.9M for contracted security services over the same period. This estimate is based on a blended rate of current airport security positions and includes wages and benefits required for a minimum staffing model of 15 full-time employees (FTE) which satisfy three required security posts for 24-hour, 7-days a week, and 365days coverage. This estimate also includes incremental corporate overhead and other non-payroll operating expenses associated with supporting the additional FTEs, such as uniforms, equipment, fuel, training, and recruitment. These costs would go to annual expenses and are significant. The estimate, however, does not include collective bargaining-related costs or negotiated wage adjustments. For 2027 alone, the Port staffing model is estimated at approximately $2.2M, consisting of $2.13M in wages and benefits, $27,600 in corporate overhead, and $71,783 in other non-payroll related expenses. The five-year forecast assumes an annual payroll and corporate overhead escalation rate of 5.5%, as provided by F&B; and 1% annual escalation of recurring non-payroll expenses beginning in 2028. Based on these assumptions, the Port staffing model is approximately $5.97M greater-almost double-than the five-year contracted security proposal. Pros: (1) Cons: (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. 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 is concerned that business continuity and site security may suffer from a lack of headcount or the inability to find qualified personnel. (2) Increase supervisory work. Maintaining a 24/7 coverage program requires additional supervisory work to handle real-time call outs and staffing shortages. Creating this program will add to recruiting, training, development, and supervisory programs. (3) Increase operational expenses. The Port will accept responsibility for any equipment required by the new employees. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 9a Meeting Date: October 13, 2026 (4) Page 6 of 8 Declined Women and Minority Business Enterprise (WMBE) participation. The current security contract is 100% WMBE. Transitioning to a Port of Seattle employment model would eliminate the guard service contract opportunity for WMBE firms. This is not the recommended alternative. Alternative 2 - Discontinue dedicated security services at Employee Parking facilities and rely on existing Port passive security measures such as cameras, lighting, access controls, and standard operational reporting procedures. Cost Implications: Eliminates the cost of a dedicated security contract or equivalent in-house staffing costs. Reduces ongoing expenses to zero relating to security personnel, vehicles, & associated operating costs. May require future investments in security technology or infrastructure enhancements to mitigate reduced on-site presence. Pros: (1) (2) Cons: (1) (2) (3) (4) (5) Lowest overall operating costs while also allowing funding to be redirected to other operational or capital priorities. Eliminates long-term contractual or staffing obligations while reducing administrative oversight associated with managing a security program. No site security presence to deter criminal activity or provide immediate response. Increased risk of theft, vandalism, trespassing, and customer safety concerns. Reduced ability to proactively identify and resolve operational or safety incidents. Increases potential for liability and risk following security and safety-related incidents. Increased reliance on Port Police or King County law enforcement, which may result in longer response times. This is not the recommended alternative. Alternative 3 - Execute a contract for security services. Consistent with existing customer expectations and service levels since the NEPL began operations, this option would maintain the practice of using a contract security firm for NEPL guard services. Cost Implications: Guard service staffing is estimated at $1.2M to $1.3M annually, expenditures which are recovered through parking fees. Pros: (1) (2) (3) Provides operational flexibility to supplement security needs without adding Full Time Equivalent (FTE) employees. Efficient use of Port funds as the procurement process helps the business unit attain competitive rates for services. Provides opportunity for WMBE contract participation. The current contractor is a 100% WMBE firm. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 9a Meeting Date: October 13, 2026 Cons: (1) Page 7 of 8 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. As per existing SLOA agreements, current 2026 monthly parking rates are fixed at $107 per month; monthly parking rates are projected to increase to $114 per month for the 2027 calendar year, with the forecasted increase of approximately 7.3% annually through 2031. Annual Budget Status and Source of Funds The Employee Parking baseline budget in 2026 includes $1.19M in 2027 for guard services across all employee parking lots. Financial Analysis and Summary Project cost for analysis Business Unit (BU) Effect on business performance (NOI after depreciation) IRR/NPV (if relevant) CPE Impact $6,900,000.00 Landside Operations, Employee Parking Absorbed in phased annual rate plan per SLOA, assuming average YOY increase of approx. 7.3% through 2031 N/A N/A Future Revenues and Expenses (Total cost of ownership) Current financial analysis forecasts $14.1M in 2026 year-end revenue. This figure includes revenue generated from the recently opened employee parking lots also known as Lots A and C. Cost Breakdown Existing Contract (S-00321204) Expires Oct 2027 Contract Year 1 (New Executed Agreement) This Request $700,000 $1,165,000 Contract Year 2 $1,200,000 Contract Year 3 $1,236,000 Contract Year 4 $1,273,000 Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 9a Meeting Date: October 13, 2026 Contract Year 5 $1,311,000 Total $6,900,000 Page 8 of 8 Note: Total sums are rounded. ADDITIONAL BACKGROUND None. ATTACHMENTS TO THIS REQUEST (1) Presentation PREVIOUS COMMISSION ACTIONS OR BRIEFINGS September 22, 2026 - Action postponed to October 13, 2026, meeting. September 9, 2026 - Action postponed to September 22, 2026, meeting. August 9, 2022 - The Commission authorized a 5-year contract for NEPL security services. August 4, 2017 - The Commission authorized a 5-year contract for NEPL security services. Template revised June 27, 2019 (Diversity in Contracting).