Dallas/Fort Worth International Airport ASCE Presentation Terminal Development Program November, 2009
ASCE PRESENTATION, NOVEMBER 2009 Background Objective The objective of today s presentation 1. Review the findings of the VFR2030 Master Plan 2. Present the recommended alternative for terminal development 3. Inform the Board of the anticipated terminal development implementation strategy 4. High level review of other significant Capital Projects affecting DFW (time permitting) Non-Central Terminal Area Regional Rail DFW Connector Parking Control System General Aviation 2
ASCE PRESENTATION, NOVEMBER 2009 Background VFR 2030 Timeline Master Plan Programming & Schematic Design Design Construction MASTER PLAN: June 2007 September 2009 Holistic approach to future development In concert with Airlines Central Terminal Area (CTA) components Identified recommended alternative for re-life of Terminals A, B, C and E, including garages and roadways $1.5 - $2.0 billion Non-Central Terminal Area (Non-CTA) components Identified future improvements for non-terminal facilities, including airfield, support facilities, ground transportation, etc. $0.6 - $1.0 billion over next 10 years 3
ASCE PRESENTATION, NOVEMBER 2009 Review of Purpose and Need Entering new era in Airport s lifecycle that requires a new long-range vision Aging infrastructure 35-year-old terminal systems Improve operational efficiencies Changes in aviation industry Focus on operational efficiency and cost reductions Enhanced security requirements Increase non-airline revenue generation Empowering customers and employees Competitive landscape Repeal of Wright Amendment in 2014 Local and other hub airports have already begun their airport renewal programs DFW 18,000 acres 7 runways 6 million ft 2 terminal space 4
ASCE PRESENTATION, NOVEMBER 2009 Background Aviation Industry Perspective Airport Program Est. Cost Dallas Love Field New Terminal, Apron, APM $900 million Atlanta Houston Intercontinental New Terminal, Runway, CONRAC, Garage and Terminal Renovation Terminals, Airfield $6 billion $1.2 billion LaGuardia Terminal Expansion $1.3 billion Sacramento New Terminal and Renovation $1.27 billion Los Angeles Terminal Expansion $1.8 billion San Diego Terminal Expansion $1 billion JFK Terminal, Airfield $1.4 billion Chicago O Hare Terminal, Airfield Expansion $3 billion Phase 1 $12 billion - Total San Francisco Terminal Renovation $475 million 5
ASCE PRESENTATION, NOVEMBER 2009 DFW Core Obligations Maintain safe and operationally reliable facilities Meet changing regulatory and renewal requirements Long-term sustainable investments Reduce cost per square foot to operate Increase revenue 6
ASCE PRESENTATION, NOVEMBER 2009 Terminal Development Central Terminal Area Components Terminals Analyzed new Terminal vs. re-life existing Established base requirements vs. wants Tiered development approach Baseline Renovation Re-development Baggage Handling System Worked with airlines to improve efficiencies Landside Terminal Access Roadways Curbs Parking Garages Replacement vs. Repair/Renovation 7
ASCE PRESENTATION, NOVEMBER 2009 Terminal Development (cont) Central Terminal Area - Recommended Hybrid Alternative for Terminal A,B,C,E Selected Elements of Highest Value from each short listed alternative $1.5 - $2.0 billion* Replace building systems Ensure operational reliability Address code and regulatory requirements Replace landside escalators with high capacity elevators Reconfigure ticketing areas to enhance self-service Expand/reconfigure security screening checkpoints to improve operational efficiency Enhance concessions Accommodate parking demand Replace finishes in public areas Rough Order of Magnitude Cost Estimate 2009 dollars Numbers are Preliminary and subject to Airline Negotiations 8
ASCE PRESENTATION, NOVEMBER 2009 Terminal Development (cont) Central Terminal Area Hybrid Alternative Key Facts Terminals A, B, C and E Re-life 30 year investment 60-70% required to replace aging infrastructure and meet DFW core obligations Replace building systems Address regulatory and code requirements Improved ticketing, security checkpoints, and baggage handling systems to enhance operational efficiencies Balance relates to finishes, passenger amenity improvements, and elements that produce positive business results Concession revenue will be enhanced by strategically grouping at key passenger circulation points 9
Recommended Alternative for Terminal A, B, C, and E Building System Replacement ASCE PRESENTATION, NOVEMBER 2009 Systems Renewal HVAC Elevators Fire protection Voice evacuation Ensure operational reliability Gain energy efficiency Sustainability 10
ASCE PRESENTATION, NOVEMBER 2009 Recommended Alternative for Terminal A, B, C, and E (cont) Terminal Landside Emphasize main Terminal entries New vertical core with high capacity elevators Curbside enhancements could include: New entry canopy Cover pedestrian crossing at main entrances Signage Garage refurbishment and replacement 11
ASCE PRESENTATION, NOVEMBER 2009 Recommended Alternative for Terminal A, B, C, and E (cont) Departure Hall Reconfigure ticketing areas Incorporate new self-service technologies Provide premium check-in Increase passenger flows Create sense of place Increase natural light 12
Reconfigured Entry, ATO Hall, Security Checkpoint ASCE PRESENTATION, NOVEMBER 2009 13
ASCE PRESENTATION, NOVEMBER 2009 Recommended Alternative for Terminal A, B, C, and E (cont) Security Checkpoint Consolidate and expand checkpoint Incorporate TSA future technology requirements Rolling out improved technology to improve passenger flow Systems back-up support 14
ASCE PRESENTATION, NOVEMBER 2009 Recommended Alternative for Terminal A, B, C, and E (cont) Concessions Create concessions groups at key passenger circulation points Enhance revenue generation Integrate revenue seating with gate lounge seating Create sense of place Increase natural light 15
Implementation Strategy for Terminal Development Enabling Projects We are moving forward in conjunction with the Airlines to advance the program schedule Identifying Terminal renovation program stand-alone projects that have no throw away elements Enabling projects could include: Eagle bag building demolition Airside gate improvements (Safe Gate) Bag system connection Gate modifications (winglets) Bag screen matrix Terminal E garage B section replacement Terminal link roadways Garage repairs Elevator and escalator cores ITS backbone and electrical rooms ASCE PRESENTATION, NOVEMBER 2009 16
DFW Approach Triple Bottom Line Proven Success ASCE PRESENTATION, NOVEMBER 2009 Stakeholder Engagement (DFW and Airlines) FEEDBACK Programming & Schematic Design Design Construction Performance Verification Closeout Lessons Learned Contractor Engagement Contractor Engagement Early Stakeholder Collaboration C3 Clear Objectives Trust-Based Teams Alternatives Analysis Sustainability Review Cost/Phasing/Schedules Project Delivery Strategy Triple Bottom Line Impact of project/program on: Finance cost/revenue Environmental minimize footprint maximum output for minimum effort Social/Operational efficiency quality 17
Implementation Strategy for Terminal Development (cont) Next Steps ASCE PRESENTATION, NOVEMBER 2009 Master Plan Programming & Schematic Design Design Construction PROGRAMMING AND SCHEMATIC DESIGN : September 2009 March 2010 Programming and schematic design will be done for Terminals A, B, C and E Refine selected elements from Terminal Master Plan to establish scope and budget for design 6 months to complete per terminal Begin M/WBE outreach program to educate minority community about the program Anticipated OBA requests requiring funding: September 2009 Terminals A,B and C $20-$22 million October 2009 Terminal E $7-$9 million The Airport intends to engage the URS/LGG team for this Programming effort. 18
Implementation Strategy for Terminal Development (cont) Elements of Programming and Schematic Design ASCE PRESENTATION, NOVEMBER 2009 Planning / programming of program elements Existing conditions assessment Prioritization of program elements Development of master schedule Development of formal program cost estimate Concessions master plan Identify funding sources Development of scopes Environmental review process Sustainability program Communications plan Community / contractor outreach 19
Implementation Strategy for Terminal Development (cont) Next Steps ASCE PRESENTATION, NOVEMBER 2009 Master Plan Design Programming & Schematic Design Design Construction DESIGN: March 2010 December 2010 Prepare required Construction documents 9-12 months to complete per Terminal Accelerate replacement of the URS/LGG team The Airport intends to engage existing/future professional service teams for Terminal design Selection................. October/November 2009 OBA approval............. December 2009 Expand M/WBE outreach program 20
ASCE PRESENTATION, NOVEMBER 2009 Financing Terminal Development Plan VERY PRELIMINARY DFW is still negotiating with the Airlines, so all numbers are subject to change Capital Plan range (ten years) Terminal Redevelopment Plan $1.5B to $2.0B Other Capital $0.6B to $1.0B, net of AIP funding Funding sources include (ten years): Beginning cash $250M From Airport operations $350M to $600M Natural Gas $0 - $250M Other sources, e.g., TxDOT $0 to $75M New PFCs $0 to $600M Debt financing $0.75B to $2.0B DFW plans to issue some new money debt in FY 2010 Reimbursement resolution in place - $190M Take advantage of AMT Holiday $300M to $500M is likely unless AMT Holiday is extended, then less 21
Implementation Strategy for Terminal Development (cont) Next Steps ASCE PRESENTATION, NOVEMBER 2009 Master Plan Programming & Schematic Design Design Construction CONSTRUCTION: February 2011 December 2017 Anticipated start for Terminal A renovation weekend after Super Bowl Typically, 1/3 of a terminal section will be closed at a time Each Terminal section will take approximately 9 to 12 months to complete Focus on minimal impact to existing operations Garage renovations will be done while adjacent Terminal sections are closed Significant work complete by the end of 2014 for Terminal A, with substantial program completion by the end of 2017 Timing for remaining terminals will be based on financing plan Maximize M/WBE outreach program efforts 2011 2014 2017 TERMINAL A TERMINAL B TERMINAL C TERMINAL E POSSIBLE CONSTRUCTION PHASING 22
Implementation Strategy for Terminal Development (cont) Summary Launch Terminal Development Programming and Design ASCE PRESENTATION, NOVEMBER 2009 Terminals A, B, and C September OBA $22M Terminal E October OBA $9M Construction Manager at Risk Solicitation October Conduct M/WBE outreach to maximize awareness of opportunities in Design and Construction Board Review of Program October Initiation of Program Post Board Review Develop flexible implementation schedule to identify enabling project elements Board Review of Enabling Project Elements TBD Initiation of Process / Implementation of Projects Post Board Review Initiate non-central Terminal Area Program 1 st QTR CY2010 Board Review and Approval of Projects TBD Commencement of individual Projects 1 st QTR 2010 (first Projects) 23
Implementation Strategy for Terminal Development (cont) Board Strategic Review of Following Programs ASCE PRESENTATION, NOVEMBER 2009 Program Management Strategy Late 2009 M/WBE Participation in Design / Construction Late 2009 Financing Plan Early 2010 Audit Strategy Early 2010 Safety Program Spring 2010 Insurance Program Spring 2010 Quarterly Board Updates Operations Committee Briefing Starts in November Note: Dates indicate approximate timeframe that Program needs to be initiated 24
Dallas/Fort Worth International Airport ASCE Presentation Terminal Development Program November, 2009
Dallas/Fort Worth International Airport ASCE Presentation Other Significant Capital Programs November, 2009
ASCE PRESENTATION, NOVEMBER 2009 Non-Central Terminal Area Components Overview $.6 - $1.0B 10yr Capital Program 66% renewal 34% expansion Major Components Airfield Non-TDP Terminal Roads/Bridges, Rail, Skylink Utilities Non-TDP Parking Commercial Development Environmental Information Technology Safety and Security Other 27
Non-Central Terminal Area Components (cont) Capital Development Program - Breakdown ($ in thousands) ASCE PRESENTATION, NOVEMBER 2009 Non-CTA Component Renewal Expansion Total Airfield $136,000 $36,440 $172,440 Non-TDP Terminals $73,000 $63,600 $136,600 Roads/Bridges, Rail, Skylink $72,100 $68,000 $140,100 Utilities $59,900 $39,000 $98,900 Non-TDP Parking $111,400 $200 $111,600 Commercial Development $17,200 $62,600 $79,800 Environmental $12,800 $600 $13,400 Information Technology $64,900 $12,500 $77,400 Safety and Security $61,100 $9,500 $70,600 Other $66,800 $51,000 $117,800 Total $675,200 $343,440 $1,018,640 Numbers are preliminary, subject to airline negotiations 28
ASCE PRESENTATION, NOVEMBER 2009 Non-Central Terminal Area Components (cont) Projects Airfield Need for 8 th runway beyond 2030 Pavement renewal program needed Other Study efforts Utility Master Plan underway Develop comprehensive utility plan at the Airport Determine utility needs to accommodate growth Consolidated Receiving/Distribution underway Improve receiving and distribution operation Improve security of goods and services Hydrology Study underway Address storm water movement and distribution issues at DFW Regional Rail Service DFW Connector 29
Dallas/Fort Worth International Airport ASCE Presentation Terminal Development Program November, 2009