Tulsa Airport approves $4.5 million contract for baggage conveyor system
A $4.5 million contract for an outbound baggage conveyor system at Tulsa International Airport was awarded Thursday by the Tulsa Airports Improvement Trust, subject to approval of the Transportation Security Administration, airport executives said.
Trustees also approved a $742,000 construction management services contract on the baggage conveyor project with Fort Worth-based Vic Thompson Co., which will oversee phased construction of the 2,100-foot outbound baggage system.
"There's no question they are the best," Jeff Hough, deputy airports director of engineering and facilities, said of the Thompson firm. "They set the standard. Given the critical nature of the system, we want to make sure we do it right."
The outbound baggage system is critical because unless it is running smoothly, baggage isn't loaded promptly on aircraft, causing departure delays, which upset airlines and passengers, airport executives said.
Hough and Frank Relja, the Tulsa Airport Authority's facilities section chief, said the 10-year-old existing outbound baggage system was one of the nation's first "in-line" systems, but its technology is outdated and its operation is prone to breakdowns.
An "in-line" system carries bags directly from airline ticket counters to TSA baggage inspection facilities and out to airline gates for loading aboard planes.
"When we first put the system in, we were running 6,000 bags a day," said Relja, who added the system is down to 80 percent of capacity because of the economy and the slump in travel. "In 2007, we were having lots of problems with the system with the amount of bags coming in.
"We should be able to increase capacity up to 10,000 bags a day" with the new system, Relja said.
Low bidder out of five bids on the baggage conveyor system was Diversified Conveyors Inc., Memphis, Tenn.
The engineer's estimate of the baggage system construction cost was $7.34 million.
Airports Director Jeff Mulder said Vic Thompson Co. will ensure the smooth delivery of outbound baggage during construction.
"We will take the B (west concourse) side down, where United Airlines and Southwest Airlines gates are, which means the bags will have to be carried down (on baggage carts) to the A side for (TSA) screening," Mulder said. "Likewise, when we do the A side. The contractor will be required to provide the people and equipment to haul the bags."
Up to 90 percent of eligible components of the baggage conveyor project will be paid by TSA, the balance with local funding, airport executives said.
In other business, the board reviewed the draft $52.4 million 2012-2013 fiscal year TAIT budget, a 2.6 percent increase from the existing budget.
TAIT's 2012-2013 fiscal year begins July 1. The board will approve a final budget at its June meeting, officials said.
The draft budget includes a $21.94 million operating budget of the Tulsa Airport Authority, up 2.7 percent from the FY 2012 budget, $21.82 million in debt service, an increase of 1.9 percent and $8.64 million in transfers to special funds, up 4 percent. The transfers to special funds include money set aside to provide financial coverage; funds needed to satisfy the TAIT portion of capital improvement projects; reserves needed for consolidated facility charges and other programmed funds used for earmarked purposes, airport executives said.
Airline rates, which contribute to the estimated $34.98 million in 2012-2013 revenue, up 2.6 percent, will increase under next year's budget, officials said.
Landing fees for the major airlines will rise 0.34 percent, to $2.94 per thousand pounds of gross landed weight.
Passenger terminal rent for ticket counter, gate and other public space will rise 11.68 percent in next year's budget, to $90.94 per square foot per year.
Following a lengthy closed-door executive session, trustees unanimously approved a request by bankrupt American Airlines to extend the deadline until Oct. 24 to decide whether to assume or reject all real property leases with TAIT.
American Airlines' real property leases with TAIT have a five-year term, which expires in 2013, and include terminal ticket counters, gates and cargo facilities, said Nancy McNair, TAIT's legal counsel.
"Under our airline lease, (American) has the right to reduce (leased) space," McNair said.
In U.S. Bankruptcy Court for the Southern District of New York, AMR Corp., the parent of American Airlines, has filed motions to reject leases at several U.S. airports, including Alliance Airport in Fort Worth and Dallas/Fort Worth International Airport, court documents show.
In another bankruptcy matter discussed in executive session, the board approved an agreement with Delta Air Lines Inc.
Under the agreement with Delta, the Atlanta-based carrier will pay TAIT landing fees owed and continuing to accrue for Pinnacle Airlines Corp., the Memphis-based regional carrier that filed for bankruptcy protection last month.
Pinnacle, which listed debt of $1.42 billion and assets of $1.54 billion in its bankruptcy filing, flies under contract for Delta, United Airlines and US Airways.
Tulsa Airports Improvement Trust actions
Approved $4.5 million contract for outbound baggage conveyor system
Approved $742,000 contract for construction management of outbound baggage conveyor project
Approved American Airlines' request to extend deadline until Oct. 24 to decide whether to assume or reject TAIT real property leases
Approved agreement with Delta Air Lines for payment of landing fees owed by bankrupt Pinnacle Airlines Corp.
Reviewed $52.4 million 2012-2013 TAIT budget
Source: Tulsa Airports Improvement Trust
D.R. Stewart 918-581-8451
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