love field modernization master planning recommendations · 3 background review the 5-party...

1

Love Field Modernization Program Update:

Master Planning Recommendations

Briefing to the Council Transportation and Environment Committee

April 28, 2008

1

2

Briefing Objective

Discuss the background and overview of the Love Field Modernization Program development process.

Present the recommendations of the Master Plan effort (Terminal Area Redevelopment Program Study).

Discuss Implementation, Project delivery.

Recommendations and Next Steps.

2

3

Background ReviewThe 5-Party Agreement to Repeal the Wright Amendment.

Flight restrictions phased out by 2014.Limit Love Field capacity to 20 gates.

Southwest Airlines – 16 gatesAmerican and Continental Airlines – 2 gates each

The City must develop the Love Field Modernization Program, and invest a minimum of $150 M and a maximum of $200 M.

The Love Field Modernization Program.Implements the 20-gate limit through reduced terminal size.Costs will be charged to airline rate base.City and Southwest Airlines will cooperate to determine the best methods to design, fund and manage the project.

3

4

Existing Terminal Area

West Concourse: Southwest Gates 1-15

North Concourse:Southwest Training, Provisioning, CBS, Ground Service Equip East Concourse:

American 3 Gates, Continental 2 Gates

East Ramp: DHL

General Aviation/Mfg: Gulfstream & Bombardier

860,000 sq ft, 43 gates. 20 gates active.

Walking Distances: 1500’ to farthest gates.

Mid-1950’s terminal design & construction.

Concession space insufficient for futurepassenger growth.

Security systems must be retrofitted.

Baggage systems lack automation and are labor intensive

4

5

Love Field Modernization ProgramGoals

Comply with 5-Party Agreement and Wright Amendment Reform Act of 2006.

Modernize the Terminal to Serve the Community and Traveling Public Efficiently and with Excellent Customer Service.

5

6

Love Field Modernization Program Objectives

Work collaboratively with Southwest and our other airlines, per the 5-Party Agreement.PlanningDevelopment Agreement

Achieve Efficiencies.Balance facility size to its needs (currently using half of available 860K square feet)System and Operational ProcessesEnvironmental Sustainability

Upgrade to Current Design Standards with Flexibility to Adjust to Future Needs.Current, Future Security Requirements and Passenger Processing TechnologiesPassenger Flow, Congestion, Delay Customer Service and Concession Revenue Opportunities

Achieve Schedule Goal: October 13, 2014.Affordable design Efficient financing strategyEffective delivery strategies

6

7

Overview of the Love Field Modernization Program Development Process

Five Steps to Implementation:Master Plan (April 2008) (TODAY’S DISCUSSION)

“Road Map” for developing the Love Field Modernization ProgramEnvironmental Actions Determination Facilities Requirements: Spatial, Functional, Level of Service

Conceptual Design Implementation: Project Financing, Development, Delivery

Development Agreement Term Sheet (JUNE)

Development Agreement (October 2008) Agreement on implementation, control and oversightAgreement on funding and financing means and methodsAgreement on lease and use during project and after completion

Design Development (Winter 2009)Determine financially feasible concept, project budget.

Procurement and Construction (Fall 2009)Completion and Move-in

Under normal development process – Summer, 2017.Ability to achieve 2014 completion goal will require a creative approach to development.

7

8

Master Plan

Terminal Area Redevelopment Program Study (TARPS)Scope of Study:

Investigate Environmental Issues, documentation needed.Verify Traffic Forecasts of 2001 Master Plan and 2006 Update.Determine Facility Spatial, Landside Traffic, Parking Requirements.Recommend Architectural Standards, Passenger Level of Service Standards, Technical Design Standards.Determine Layout of Terminal and Support Facilities in Terminal Area. Determine Conceptual Layout and Potential Cost Range.

Study Completed April 2008Findings, Recommendations Follow

8

9

Environmental Issues and Documentation NeededFindings

Project Construction will not exceed emissions thresholds. Project will result in more efficient facility operation and will not increase impact.

Action Items:General Conformity Applicability Analysis submitted to FAA

FAA advised its intent to determine no significant impact from projectDocumentation pending, in support of a Categorical Exclusion from National Environmental Protection Act (NEPA) requirements.

Master PlanMajor Findings & Recommendations

9

10


Passenger and Aircraft Traffic ForecastsTARPS forecast methodology:

See Appendix page 30 – 31 for detailed information.

Design Level Enplanement Forecast:Annual – 5,865,580Peak Month – 697,442Average Day – 22,498Peak Hour – 2,250

Forecasts considered reasonable by airlines & and consistent with FAA forecasts.

10

11


■ Facilities Requirements and StandardsLevel Of Service – International Air Transport Association standard

Comparison service levels: • “LOS A” - passengers would be able to move freely through the terminal facility

without experiencing any delays in their movements and feel comfortable in doing so (High Cost).

• “LOS E” - passenger movements would be congested, uncomfortable and delays would be recognized as unacceptable (Low Cost).

“LOS C” is recommended as the minimum design objective, as it represents good service level at a reasonable cost.

LOS FLOWS DELAYS COMFORT A – Excellent Free None Excellent B – High Stable Very Few High C – Good* Stable Acceptable Good D – Adequate* Unstable Acceptable for Short Periods Adequate E – Inadequate Unstable Unacceptable Inadequate F – Unacceptable System Breakdown Unacceptable Unacceptable

*Note: Level C = standard minimum, Level D = peak periods

11

12


■ Facilities Requirements and StandardsSpace requirements to accommodate enplanementforecasts

• See Appendix page 32 for detailed Space Program.• Overall 602,000 sq. ft.• Concession space tripled• Future Parking expansion

Design Level of Service (LOS)• Proposed space results in

upgrade to LOS “C”.• LOS “C” = good service at

reasonable cost

12

13


Concepts and Cost RangeConsiderations:

5-Party Agreement caps cost at $200 M.City and Southwest can agree to exceed the cap if desired.Agreement to exceed cap determined through negotiation of Project Development Agreement.

Concept Development Approach:New terminal site examined.

Southeast of existing terminal (East Ramp) .Space limitations and added cost of new infrastructure made concept not feasible.

Three concepts developed for existing terminal site.Allows economical re-use of portions of existing facility.All three concepts exceed the $200 M cap.

13

14


Concepts: Option “A”Meets the requirements of the 5-Party Agreement.Demolish down to 20 gates.

East ConcoursePortions of North ConcourseWalking distance remains 1500 ft to farthest gate.

Remodel remaining gates and enlarge concession space.16 gates in West Concourse4 gates in North Concourse

Ticketing and Security Screening capacity enhancements.Minimal Bag Claim, Curbside and Roadway enhancements.Lowest cost option exceeds the cap at $357 M.

14

15

Option A

15

OPTION A

Scope

Renovate West Concourse for 16 total SWA gates

Temporary Gates on North Concourse to allow phased renovation of West, then become permanent location for AA and CO

New T-Point and EDS Screening

No work to Terminal Building or Curbside

New Construction

Existing Facilities

16


Concepts: Option “B”Renovate West Concourse (12 gates). Demolish East, and existing North Concourses.Construct new North Concourse (8 gates).

Requires airlines to operate at 2 concoursesSplits passenger traffic between 2 concourses Requires duplication of concessions for each concourseWalking distance decreases to 1384 ft to farthest gate

New Ticketing HallRenovate Main Terminal LobbyExpanded Passenger Screening CheckpointBaggage Screening consolidated into one system for all airlinesExpand Bag ClaimExpand Curbside Highest cost of the 3 options ($608 M).

16

17

Option B

17

OPTION B

Scope

Renovate and Expand West Concourse for 12 total SWA gates

Demo North Concourse and rebuild in new location with 8 Gates

New Ticket Hall

Bag Claim Expansion

Curbside Expansion

Terminal Renovation

New Construction

Existing Facilities

18


Concepts: Option “C”Achieves all facility objectives (page 6). Construct single new 20-gate concourse.

More efficient use of available Terminal Area site (smallest footprint)All airlines, passengers in same concourseEnables central concession area accessible by all passengersWalking distance reduces to 1,096 ft to farthest gate

New Ticketing HallRenovate Main Terminal LobbyExpanded Passenger Screening CheckpointBaggage Screening consolidated into one system for all airlinesExpand Bag Claim Expand CurbsideLayout efficiency contributes to passenger convenience and Level of Service “C”.Cost $571 M. Exceeds Option A by $214 M, or 60%.

18

19

Option C

19

OPTION C

Scope

Demolish East, North and West Concourses and replace with new North Concourse with 20 gates

New Ticket Hall

Expanded Bag Claim

Expanded Curbside

Terminal Renovation

New Construction

Existing Facilities

20

Concept Development: Performance Comparison Matrix• Option A meets/exceeds target for 5 of 12 terminal requirements.• Option B meets/exceeds target for 9 of 12 terminal requirements.• Option C meets/exceeds target for 10 of 12 terminal requirements.

Master Plan: Major Findings & Recommendations

10001000600100568Commercial Curb600600400530992Departures Curb6006003006601,043Arrivals Curb

Landside Facilities2,2502,2501,8351,8352,250Gate Holdroom (avg. sf/gate)75,00073,00029,10020,40073,013Concessions

10108 to 9910EDS Screening Devices12 to 1412 to 1412 to 14714Passenger Security Checkpoints

10001000450450729Bag Claim (frontage – lf)23,40023,40019,00019,00012,500Bag Claim (area – sf)

1210101012Ticketing Curbside Positions4949492449Self-Service Devices1414141414Ticketing Counter Position

Terminal FacilitiesC

OptionBAExisting

Performance TargetPerformance Requirements

20

21

Evaluation Matrix

• Score Range = 1-5

• 1 = least desirable

• 5 = most desirable

• Option C score 46% higher than Option A

• Matrix supports Option C as preferred concept

Master Plan: Major Findings & Recommendations

A B C

Time To Implement 5 2 3Operational Complexity 2 1 4Customer Inconvenience 2 1 4Cost of Overall Program 5 2 3

Operational Efficiency 4 3 5Estimated Relative O&M Cost 2 4 5

Curbside 2 4 4Ticketing 2 4 4SSCP 2 4 4Holdrooms 2 5 5Concessions and Amenities 2 5 5Baggage Claim 4 4 4Walk Distance 3 4 4

37 43 54

Customer Convenience

SUMMARY

Option

Implementation

Operations

21

22


22

Level of Service and Cost Comparison:

Service component OptionA B C

Check-in Queue Area 75 75 75Gate Hold Room 58 58 58Baggage Claim 65 75 75Circulation and Waiting Areas 72 78 78Total 270 286 286Average 68 72 72LOS D C CEvaluation Matrix Score 37 43 54Planning Cost $357 M $608 M $571 MPreferred Option XX

23


Concept Development

Planning Costs:Costs are very preliminary.

More accurate project costs to be determined during design development (Winter, 2009), based on provisions of Project Development Agreement, to be approved by City Council.

23

24

Implementation & Project Delivery

ImplementationAs stated on page 3, “the City and Southwest Airlineswill cooperate to determine the best methods to design, fund and manage the project (5-Party Agreement).

A Project Development Agreement (PDA) between the City and Southwest will represent agreement on the best methods.

See outline of PDA, Appendix pages 33-36.

PDA to be proposed to City Council for approval.Term Sheet to Council for approval June, 2008.

24

25


Schedule Efficiencies:Schedule goal (page 7) is the date of full repeal – Oct, 2014.

Terminal capacity needed for forecast passenger trafficHowever, projected completion date under normal City development process – 2017.

Opportunity for Cost and Schedule Efficiencies:Significant project elements can be assigned in the Project Development Agreement to Southwest Airlines.

Creation of a Local Government Corporation (LGC) is a means provided by state statute, of assigning LFMP development to a third party.

May be created to aid and act on behalf of the City to accomplish any governmental purpose of the City. LGC has power to contract and to issue debt to be secured by airlines.LGC to be proposed for City Council approval in June, 2008.

25

26

Local Government Corporation (LGC)Addresses Project Challenges:

Project FinancingVehicle for issuing bonds secured by airlines (rather than airport revenues).

Demanding schedule for 2014 completionEmpowered by state to contract and assign project development to third party:

Enables fast-track procurement and delivery methods;Preserves City Council approvals and governance.

Project cost containmentCosts to be borne by airlines.Allows airline co-management of costs through negotiated PDA.

Project complexityDemolition of existing, and construction of new facilities while still in use.Maintaining growing operations of 3 airlines and 2 major concessionaires throughout project.Extensive construction phasing and tenant relocations.

Successfully used for recent City project.Mercantile/Forest City Project developed under an LGC.City has also financed other public projects managed by 3rd party entities:

Performing Arts Center, American Airlines Center.


26

27

Recommendations SummaryRecommend the City Council approve the Terminal Area Redevelopment Program Study (TARPS) as the master plan for the Love Field Modernization Program (LFMP).

Provides viable concepts which:Comply with the 5-Party Agreement; Accommodate passenger levels forecast to nearly 12 million annual passengers by 2014;Provide a Level of Service standard “C”.

Recommend the City Council approve Option C as the preferred concept to be developed further, pending final recommendation after design and budget development pursuant to a Project Development Agreement (PDA), to be negotiated between the City and Southwest Airlines.

Term Sheet defining terms of proposed PDA to Council for approval June, 2008.Final recommendation to Council for Terminal Concept Option C approval.

27

28

Next StepsCity Council approval of Terminal Area Redevelopment Program Study as the Master Plan for the Love Field Modernization Program.

City Council Agenda for approval May 21, 2008.

Develop proposal to create a Local Government Corporation (LGC) as a means of developing the Love Field Modernization Program in the most efficient and cost effective manner possible.

City Council Agenda for approval June 25, 2008.

Negotiate a Project Development Agreement (PDA) with Southwest Airlines, for City Council approval, to enable commencement of design development.

Term Sheet of agreement to City Council for approval June 25, 2008.Recommendation on Terminal Concept to City Council for approval June 25, 2008.

28

29

Appendix

Passenger Traffic Forecast Methodology 30-31.

Facilities Space Program 32.

Project Development Agreement Outline 33-36.

29

30


Passenger and Aircraft Traffic Forecasts2006 Update of the 2001 Master Plan estimated the effects which might result from the proposed repeal of the Wright Amendment.

Data used as the basis for the TARPS forecast.FAA Terminal Area Forecast (TAF) for Love Field:

Standard forecasting model used to test validity of airport-specific forecast.Results exceed the 2006 Update, but validates current TARPS forecast.

TARPS forecast methodology:Constraint – 20 Gates.Constraint – Voluntary Curfew (17 hours of operation)Variable – Aircraft size:

assume 737-700, 137 seats.Note: American & Continental currently operate 50 seat Regional Jets. The forecast assumes greater demand for larger aircraft when all restrictions phase out in 2014.

Variable – Turns per Gate:10 turns per gate (assumes 20-25 min ground time per turn – reasonable on consistent basis).15 turns per gate (assumes 15 min ground time per turn – achievable but not consistently)

30

31

Master PlanMajor Findings & Recommendations■ Forecasts – Design Level

Consultation with airlines concerning these peak hour passenger levels indicate that they are within a reasonable range Love Field during the forecast period.

FAA TAF validates the TARPS 10-turn per gate projection for post-Wright Amendment conditions. However, it assumes on-going growth rate, which fails to recognize physical constraint of 20 gates and practical operating constraint of 10 turns per gate, as limiting factors on growth.

TARPS projection for 10 turns in 2014 constitutes the design level of passenger enplanements.

Design Level Enplanement Forecasts Annual Peak

Month Average

Day Peak Hour

Historical 2006 3,439,050 311,032 10,033 1,164

9.04% 31 Days 11.60%

TAF Projected

2011 4,275,602 386,691 12,474 1,447 2016 5,889,779 532,679 17,183 1,993 2021 7,967,466 720,588 23,245 2,696 2025 8,653,965 782,675 25,248 2,929

10-Turn

Projected

2014 5,865,580 697,442 22,498 2,250

Compounded TAF Annual Growth Rate

2006-2025 4.39% 4.39% 4.39% 4.39%

Sources: City of Dallas, Department of Aviation (historical annual activity)

FAA Terminal Area Forecast (projected annual air carrier activity) Ricondo & Associates, Inc. (peak month and peak hour activity) Gresham, Smith and Partners (update and turn project activity) Prepared by: Ricondo & Associates, Inc, updated by Gresham, Smith and Partners

31

32


32

Key Units Sq.Ft.AIRLINE SPACEAirline Ticket Counter

AS-2 Ticket counter agent positions 14 AS-2 Ticket counter ATMs 12 AS-2 Curbside counter agent positions 49 AS -2 Ticket counter (lineal feet) - 90 AS -3 Ticket counter (area) 1,454 AS -4 Ticket counter queuing area 7,938 AS -5 Ticket counter support office 2,250 AS -6 Baggage Makeup 2,250 93,000

Baggage ClaimAS -7 Number of devices 5 AS -7a Total lineal feet 729 AS -8 Bag claim area 12,500 AS -8a Baggage Claim Input 10,400 AS -9 Holdrooms 87,841 AS -10 Clubrooms - AS -11 Airline Offices - Landside Terminal 7,512

AS -11a Airport Administration - Landside Terminal 35,000 AS -12 Airlines Offices - Airside Terminal 4,000 AS -13 Airline Operations 60,000

Subtotal 321,895 CONCESSIONS

C -1 Food & beverage 53,518 C -2 Rental Car area 3,400 C -3 News/sundries (5% of Gross Terminal Area) 16,095

Subtotal 73,013 PUBLIC SPACE

PS -1 Security Checkpoints 14 14,000 PS -1a TSA Administration 4,000 PS -2 Ticket Lobby 4,500 PS -3 Baggage Claim Lobby 9,200 PS -4 Restrooms 18,260 PS -5 Terminal Services 15,600 PS -6 Concourse Circulation 80,375 PS -7 Mechanical & Services 60,884

Subtotal 206,819 Curbside and Parking

CS -1 Curbside - Departures 992 CS -2 Curbside - Arrivals 1,043 CS -3 Curbside - Shuttle 568 P-1 Employee Parking Spaces 1,000

Subtotal

TOTAL 601,728

BASIS FOR 10-TURN SPACE PROGRAM CALCULATIONS

DALLAS LOVE FIELD

LANDSIDE TERMINAL BUILDING

Type of space

33

Implementation & Project DeliveryProject Development Agreement (PDA)

An agreement between the City and Southwest Airlines specifying the goals and objectives of the LFMP and agreeing to the manner in which it will be developed, financed and operated.

Scope of the Agreement:Intent of the Project

Project scopeCommitment to interests of each party Cooperation with other airlinesSafety, security, maintenance of operations

Program Management TeamConsists of representatives for City and SouthwestResponsibilities & authority definedControls, reporting, costs, payments

Program DescriptionIndividual projects comprising the LFMPExclusions and interfacing projectsFAA funding, standards, grant assurance conformance

33

34

Project Development Agreement (PDA) (cont’d.)Program Definition Manual

Project planning & phasingDesignProcurement & solicitationConstruction, completion, acceptance

City ordinances & requirementsCodes, ordinances, Life Safety Master PlanEnvironmental remediationM/WBE, DBE participationArt in Public Places, LEED CertificationProject labor agreement, wage ratesSales tax exemption, Record documentsConstruction staging and parking

Dispute Resolution


34

35

Project Development Agreement (PDA) (cont’d.)Contract forms

Contracting authorityDesign, Construction, Program/Construction ManagementContract forms, bond/insurance requirementsProject titleDefault

Plan of FinanceSources of funds, schedules

Grants, PFC, airport revenues, airline fundsFinancing obligationsRequisition of fundsAgreement on Rates & Charges


35

36

Project Development Agreement (PDA) (cont’d.)Effectiveness of agreement

City, airline approvalsFAA Record of DecisionIndemnification

Airline use and lease agreement / lease amendmentResponsibilities of Agencies

Department of AviationPublic WorksTSAFAABuilding Permits


36

Questions and Answers

37

love field modernization master planning recommendations · 3 background review the 5-party...

Documents