PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
6c
Date of Meeting
November 3, 2009
DATE: October 23, 2009
TO: Tay Yoshitani, Chief Executive Officer
FROM: Stan Shepherd, Manager, Airport Noise Programs
SUBJECT: Funding authorization for the sound mitigation of Highline Community College
Building 9. Amount of this request is for $1,261,332. Source of funds: Airport Development
Funds (ADF), Passenger Facility Charges (PFC’s), and Airport Improvement Program (AIP)
Federal Grants.
Estimated State and Local Taxes Paid: $124,895
ACTION REQUESTED
Re Request for authorization for the Chief Executive Officer to execute all documents necessary to complete the
sound mitigation work on Building 9 at the Highline Community College (HCC) at an estimated cost of
$2,017,377 including administrative expenses. This authorization request is for $1,261,332 and will bring the
total authorization for this CIP to $6,254,930. There is no Port property tax levy funding associated with this
request.
BACKGROUND/SYNOPSIS
In April, 1994, the Port of Seattle and HCC entered into an agreement to provide Port funding to the college to
sound insulate a maximum of 22 classroom buildings against aircraft noise. HCC hires and manages the
contractors, and the Port reimburses the college for the approved insulation-related work. Port insulation funds
were understood to be dependent on the State of Washington providing funding for the college’s capital
program. The complete set of insulation projects was budgeted at $10,822,000 based on a very preliminary
estimate. The details of each building were unknown, as was the schedule. In general, the rate of remodeling
has been slow, with HCC often remodeling only one building each summer. Twelve of the 22 buildings have
currently been sound insulated. The remaining classroom buildings will be evaluated to determine need,
funding availability, and eligibility based on noise audits.
Originally, staff sought Commission authorization for 3 to 5 buildings at a time. To better plan, estimate, and
manage this multi-year commitment, Port staff will now be seeking Commission authorization for one building
at a time, after the HCC architect’s estimate is available. Due to the competition among colleges for state
funding, a schedule has not been set for the remaining eligible buildings. We will return to the Commission in
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
October 23, 2009
Page 2 of 4
the future for authorization when additional buildings are identified for acoustical installation remodel work.
Additional funding may be needed at that time.
State funding has been slated for 2010 for HCC to help complete work on Building 9. In addition, the Port has
worked with the Federal Aviation Administration (FAA) to make this CIP program AIP noise grant eligible to
account for 80% of eligible costs. Previously HCC mitigation was funded by ADF and PFC’s only.
Based on estimates provided by the acoustical architect, the entire cost for the renovation of Building 9 is
estimated at $2,293,737. The Port’s portion of funding to noise mitigate the building is $2,017,377, which
includes administrative costs as well as a contingency for construction costs. Because there is only $756,045
remaining in the current CIP authorization, we are requesting authorization for the remaining balance of
$1,261,332. Approximately $4.5M remains in the CIP for future work.
PROJECT DESCRIPTION/SCOPE OF WORK
The scope includes renovation of all remaining eligible items in the renovation of Building 9. Major elements
include installing sound rated windows, acoustical roof treatments, and mechanical ventilation systems. The
Port and FAA will be funding only acoustical related items in the reconstruction. HCC and the state will fund
all non-acoustical related items. All work should be completed in the year 2010.
PROJECT JUSTIFICATION
In support of the airport strategy to Develop and Maintain a Supportive Community, the Community
Development Department works closely with local and regional leaders and residents to develop and implement
mutually beneficial land use compatibility agreements, sound insulation programs, and property acquisition for
noise. Completion of these programs will reduce noise impacts on airport neighbors while increasing land use
compatibility around the airport.
FINANCIAL IMPLICATIONS
This request provides FAA AIP grant funds and Airport funds for mitigation of aircraft noise in Building 9 at
HCC. The funding request is based upon the estimate prepared by the acoustical architect hired by HCC and an
upfront allocation of eligible costs agreed to by the Port. The Port reimburses HCC after the appropriate
documentation is presented, reviewed, and approved by the Port.
Budget/Authorization Summary
Original Budget
$ 7,500,000
Revised Budget Increase
3,322,000
Revised Budget
10,822,000
Previously authorized
CIP Cost-to-date
$ 4,993,598
4,237,553
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
October 23, 2009
Page 3 of 4
Authorization Remaining in CIP
756,045
2,017,377
1,261,332
Remaining budget to be authorized
$4,567,070
Project Cost Breakdown Current Request
Construction Estimate
$1,314,689
9.5% Sales Tax
Permits
Design Services
124,895
52,588
161,415
Total Construction Related
POS Contingency 20%
POS Admin 2%
Total Project Cost
1,653,587
330,717
33,072
$2,017,377
Source of Funds
This project is included in the 2009-2013 Capital Budget and Plan of Finance under CIP number
200042. The funding plan for this project includes a combination of Airport Improvement (AIP) grant funds,
Passenger Facility Charges (PFC) and Airport Development Funds (ADF).
Financial Analysis
CIP Category
Compliance
Project Type
Noise Mitigation
Risk adjusted Discount rate
N/A
Key risk factors
N/A
Project cost for analysis
$1,261,332
Business Unit (BU)
Airfield
Effect on business performance
AIP grant funds will cover 80% of the project costs.
The remaining ADF will be recovered through rates
and charges, NOI after depreciation will increase
IRR/NPV
N/A
CPE Impact
Less than $0.01 in 2011, but no changes to business
plan forecast as this project was included. AIP grants
will fund 80%of project costs and PFC’s will fund
approximately 15%. The remaining 5% will be
funded with the ADF. Since grand and PFC funded
costs are excluded from the airline rate base, the
impact on CPE is minimal
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
October 23, 2009
Page 4 of 4
PROJECT SCHEDULE
Construction should be complete in the summer of 2010.
PREVIOUS COMMISSION ACTIONS
Resolution No. 2943, as adopted on January 8, 1985 – Authorization to conduct an on-going noise remedy
program consisting of the insulation of homes and public buildings including assistance in the sale of homes
located in the airport vicinity.
Resolution No. 3212 as adopted on July 17, 1996 – Commission commitment to fulfill additional noise
reduction measures in accordance with the Puget Sound Regional Council resolution A-96-02.
Commission Authorization, January 11, 2005 – Authorized staff to proceed with funding of several noise
remedy projects including buildings at the Highline Community College.
Commission Authorization, May 13, 2008 – Authorized staff to proceed with funding for Building 19 at
Highline Community College.
ATTACHMENTS:
None