PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
6d
Date of Meeting
March 1, 2011
DATE: February 22, 2011
TO: Tay Yoshitani, Chief Executive Officer
FROM: Mike Ehl, Director, Airport Operations
David Soike, Director, Aviation Facilities and Capital Program
Wayne Grotheer, Director, Aviation Project Management Group
SUBJECT: 2011 Airfield Improvement Projects – Contract 2 (CIPs # C102573, # C800469).
Amount of This Request: $6,481,000 Source of Funds: Existing Revenue Bond
Proceeds
State and Local Taxes Paid: $509,000 Jobs Created: 13
Total Estimated Project Costs: $7,320,000
ACTION REQUESTED:
Request authority for the Chief Executive Officer to advertise and execute a construction
contract for the 2011 Airfield Improvement Projects – Contract 2, made up of two work projects:
1) slot drain, pavement and joint seal replacement at the South Satellite, and perform installation
of temporary common use podiums and minor removal of hazardous materials through Port
Construction Services with a construction cost request of $6,235,000 for total project cost of
$6,629,000; and 2) water isolation valve upgrades, with a construction cost request of $246,000
for a total project cost of $691,000 at Seattle-Tacoma International Airport.
SYNOPSIS:
This authorization will complete the construction work associated with two earlier Commission
actions in August and September of 2010 where the Commission authorized final design and pre-
purchase of equipment. The single construction contract is comprised of work from two
different capital improvement programs. One portion of this contract will replace slot drains (a
long, narrow drain system to convey runoff from the pavement surface), concrete pavement
panels, joint seal, utilities, common use gate and podiums with communication infrastructure,
and other related scope items at the South Satellite. The second portion of the contract will
replace inoperable or failing water valves and add strategically needed valves at the South
Satellite and a location in the vicinity of the North Satellite within the airfield operations area.
The two types of projects are being combined into a single construction contract because they
both are located in the airfield operations area that has strict access and safety requirements, both
have common elements of work, and a single contractor could provide efficiency. The Port’s
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
February 22, 2011
Page 2 of 8
project labor agreement will be applied to this project as a result of the safety and time-
sensitivity needs associated with working in the airfield restricted areas.
BACKGROUND:
In 2009, Airport staff conducted a visual survey of the non-runway pavement on the airfield, to
determine which pavement needed replacing, and in what sequence. It was determined that the
South Satellite work should be completed first, due to the deteriorating condition of the
pavement caused primarily by the design of the original 40 year old slot drain system, which is at
the end of its useful life. To that end, work in 2011 will focus on replacement of the slot drains
and the associated pavement around the South Satellite. Pavement joint seals will also be
replaced, to take advantage of the already closed gates.
The slot drain and adjacent concrete were originally installed in 1971 with an expected service
life of 20 years. Typical degradation of the concrete is occurring. In the areas adjacent to the slot
drains the concrete is degrading at an accelerated rate. Joint seal in the area has degraded and in
some cases is nonexistent.
The concrete, slot drain and joint seal work must occur in a phased, gate by gate, fashion to keep
the Satellite functional for our airline tenants. Advance acquisition and installation of temporary
common use passenger processing equipment is required in order to enable a more efficient shift
of airlines between gates to allow the work in the vicinity of respective gates to proceed.
The scope of work for concrete, slot drain and joint seal work includes temporary common
use podiums for flights displaced by this project. Gates S8 and S9, which do not have
common use equipment, will be used while other gates are not available. The temporary
common use podiums will allow flights to be shifted to gates that currently do not have common
use equipment and minimize impacts to the airlines and passengers. On September 28, 2010, the
Commission provided authorization to design, acquire equipment, and install the temporary
common use podiums. As the design progressed, it became apparent that the electrical and
communication connections were more challenging than anticipated and that the acquisition of
the equipment would cost approximately $178,000 more than anticipated. Therefore, additional
funds are included in this request to allow installation of the common use equipment.
This project is part of a multi-year program to replace some of the worst pavement and joint seal
on the airfield. The project will generally replace the most critical pavement first, but will
include other pavement sections when it makes sense, such as replacing aging pavement that still
have some service life remaining can avoid future operational impacts. The criticality and order
of the multi-year pavement replacement program may change over time, based on pavement
deterioration, operational impacts, and available funding. The 2011 project is anticipated to be
approximately $6,629,000, which includes the funds currently being requested. The overall
program amount for work from 2010 to 2015 is $30.8 million.
The majority of the water distribution system at the Airport is almost 40 years old. The system is
equipped with buried pipes and some strategically located valves so that portions of the system
can be isolated in the event of breaks, leaks, or tie-ins. However, certain valves do not work
properly or are inoperable and have reached the end of their life expectancy. Major, critical
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
February 22, 2011
Page 3 of 8
sections of the water system cannot be isolated because either an existing valve does not work or
an isolation valve does not exist. This creates operational risk to the Port’s water supply system.
PROJECT JUSTIFICATION:
In areas around the South Satellite, the design used for the existing slot drain system is causing
accelerated deterioration of the surrounding pavement. There is also other pavement in the
vicinity of the South Satellite that needs to be replaced. Concrete debris resulting from the
deteriorating pavement is a hazard for aircraft and personnel. As the gates are taken out of
service for the pavement and slot drain replacement, it presents an opportunity to also replace the
deteriorating pavement joint seal in the immediate area.
Replacing failing valves and adding strategically placed valves will enable the Airport Water
Department to isolate sections of the water system in the event of a water main break or for
construction-related activities.
Project Objectives:
Replacement of the slot drain, pavement panels, and joint sealant around the South Satellite.
Also replace and install new water valves as indicated in design drawings.
PROJECT SCOPE OF WORK AND SCHEDULE:
Scope of Work:
Replace failed slot drain, pavement panels, and joint seal around the South Satellite; replace
failing water valves and add valves in several strategic locations around the airfield.
Project Labor Agreement:
This project will include a Project Labor Agreement due to the time sensitivity and safety issues
associated with runway work.
Schedule:
Complete Design 1
st
Quarter 2011
Bid and Award 2
nd
Quarter 2011
Start Construction 3
rd
Quarter 2011
In-Use Date 4
th
Quarter 2011
Project Completion 4
th
Quarter 2011
FINANCIAL IMPLICATIONS:
Budget/Authorization Summary:
Slot Drains, Pavement Panel Replacement and Joint Sealant
Original Budget
$30,800,000
Budget Increase
$0
Revised Budget
$0
Previous Authorizations this CIP
$394,000
Current request for authorization
$6,235,000
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
February 22, 2011
Page 4 of 8
Total Authorizations, including this request
$6,629,000
Remaining budget to be authorized
$24,171,000
The $30,800,000 original budget for pavement replacement was set by the Aviation Investment
Committee and is intended to cover replacement over the next several years. Each successive
authorization will be requested from the commission on a yearly basis.
Water Isolation Valve Upgrade
Original Budget
$1,055,000
Budget Increase
$1,092,000
Revised Budget
$2,147,000
Previous Authorizations (CIP # C102334)
$1,149,000
Current request for authorization (CIP # C800469)
$246,000
Total Authorizations, including this request
$1,395,000
Remaining budget to be authorized
(CIP # C800469)
$752,000
The original CIP budget of $2,147,000 was split after the previous authorization of $1,149,000.
$704,000 of the authorized funds was retained in (CIP # C102334) for non-airfield work. The
remaining budget $1,443,000, of which $445,000 was authorized, was moved into (CIP #
C800469) for secured-airfield work.
Project Cost Breakdown:
Slot Drains, Pavement Panel Replacement and Joint Sealant
Design
$388,000
Site Work
$4,855,000
PMG and Soft Costs
$925,000
WA State Sales Taxes
$461,000
Total
$6,629,000
Water Isolation Valve Upgrade
Design
$40,000
Site Work
$506,000
PMG and Soft Costs
$97,000
WA State Sales Taxes
$48,000
Total
$691,000
Combined – Contract Cost Breakdown
Design
$428,000
Site Work
$5,361,000
PMG and Soft Costs
$1,022,000
WA State Sales Taxes
$509,000
Total
$7,320,000
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
February 22, 2011
Page 5 of 8
Budget Status and Source of Funds:
These projects are included in the 2011-15 capital budget and plan of finance within (CIP #
C102573) and (CIP # C102334). The funding source will be existing revenue bond proceeds.
Financial Analysis and Summary:
Slot Drains, Pavement Panel Replacement and Joint Sealant
CIP Category
Renewal/Enhancement
Project Type
Infrastructure Upgrade
Risk adjusted Discount rate
n/a
Key risk factors
n/a
Project cost for analysis
$6,629,000
Business Unit (BU)
Airfield – capital costs will be fully recovered in
landing fees over the life of the asset
Effect on business performance
No change: NOI after depreciation will increase
since capital and operating costs will be recovered
through landing fees.
IRR/NPV
n/a
CPE Impact
CPE will increase less than $.04 in 2012, but no
impact on business plan forecast as this project was
included.
Water Isolation Valve Upgrade
CIP Category
Renewal/Enhancement
Project Type
Infrastructure Upgrade
Risk adjusted Discount rate
n/a
Key risk factors
n/a
Project cost for analysis
$2,147,000
Business Unit (BU)
Division-wide
Effect on business performance
Costs will be recovered through rates and charges
IRR/NPV
n/a
CPE Impact
CPE will increase by $0.01 in 2012, but no change
compared to business plan forecast as this project
was included.
Lifecycle Cost and Savings:
The service life for concrete pavement and slot drains on the airfield is 20 years. The service life
for water valves is 20 years. This project is replacing components that have exceeded their
expected service life.
Annual Estimated O&M:
No additional O&M costs beyond current levels are anticipated. Buried gate valves and the slot
drain design are compatible with current O&M procedures. The replacement of deteriorating
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
February 22, 2011
Page 6 of 8
concrete will relieve maintenance of ongoing patching and repair in the affected area. A savings
of approximately 200 hours of labor or $10,000 to $11,000 may be realized.
ENVIRONMENT AND SUSTAINABILITY:
The concrete panel and slot drain repair and maintenance is eligible for a Categorical Exclusion
and Categorical Exemption under the National Environmental Policy Act (NEPA) and State
Environmental Policy Act (SEPA) due to the nature of the project. The environmental review for
the project will be completed before the project is advertised for construction.
The Airport’s ramp area is comprised of a series of concrete pavement panels, and its slot drain
system services the various Airport concourses. The ramp provides parking and access to the
gate positions for aircraft. The slot drain system allows for drainage of the ramp area.
Maintaining the ramp and slot drain system is critical for preserving access to aircraft parking.
The water valve replacement portion of this project will utilize energy efficient equipment,
reduce water loss, improve quality of water delivered to users and reduce unplanned disruptions
to operations.
STRATEGIC OBJECTIVES:
This project supports the Port’s strategy to “Ensure Airport Vitality” by maintaining a safe
operating environment as well as maximizing asset utilization.
TRIPLE BOTTOM LINE SUMMARY:
Replacement of slot drains, concrete pavement panels, and the joint sealant are a financially
responsible way to insure continued access to the gate areas for the airline tenants and continued
gate availability for the traveling public.
Combining the water valve replacement project with the slot drains and concrete panel
replacement project provides a cost effective means of accomplishing necessary renewal and
replacement of critical Airport infrastructure and minimizes impacts to the airlines and
passengers.
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS:
Slot Drains, Pavement Panel Replacement and Joint Sealant
1) Do nothing: This alternative would result in an increasing risk of aircraft ingesting
concrete debris into aircraft engines around the South Satellite and possible need for
closure of gates. Additionally, the Port would not be able to shut down and isolate
sections of the water system. This is not the recommended alternative.
2) Treat the two CIPs as different projects and separate them into two distinct contracts. The
replacement of the pavement, slot drain system, and joint seal would be one project and
the water isolation valves would be project two. Without proper coordination the
ultimate result would be an increased impact to the airlines and escalation in construction
costs due to duplication of effort. This is not the recommended alternative.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
February 22, 2011
Page 7 of 8
3) Replace the slot drains, pavement, joint seal and water isolation valves during the 2011
construction season (approximately seven months). This is the recommended
alternative.
Water Isolation Valve Upgrade
1) Do nothing. The water system would remain as is. Existing valves, including those that
are broken or compromised, would remain, and new valves would not be added. Under
this option, certain portions of the water system cannot be isolated without shutting down
major portions of the water system affecting major areas of the Airport. As the water
system continues to age, more frequent failures and unanticipated outages will occur.
Adding additional water system tie-ins as requested by customers will be more difficult
in the future without the ability to isolate portions of the water system. Disruptions to
tenant and Airport operations will increase. In addition, the Airport water system is a
dual system providing water for domestic uses and fire protection. Pressure in the water
system increases dramatically in the event of a fire, as large diesel-powered fire pumps
activate. An un-isolatable water main breakage corresponding with a fire event could
compromise response, increasing life safety and property damage risks. This is not the
recommended alternative.
2) Replace all Older Valves in the Water System. This would further enhance reliability by
replacing all older valves in the water system, but would be substantially more expensive,
cause more temporary disruptions to operations, and is not proven to be needed at this
time. This is not the recommended alternative.
3) Renew and Replace Selected Valves in the Water System. Many of the water valves to
be replaced are nearly 40 years old and need to be replaced. Other valves, however,
continue to work well despite their age. These valves continue to perform as intended
and would not be replaced. Known defective valves would be replaced (and selected new
valves added at strategic locations) under this alternative. Lessons learned in this project
would be used in additional renewal and replacement projects for our water system and
other similar utilities. This is the recommended alternative.
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST:
None
PREVIOUS COMMISSION ACTION:
On September 22, 2009, Senior Aviation Staff briefed Commission on Seattle-Tacoma
International Airport Facility Functionality and Readiness.
On August 10, 2010, the Commission authorized the Chief Executive Officer to direct staff to: 1)
proceed with project management, design, environmental support, and preparation of 100 percent
design level construction documents for the replacement of slot drains, pavement and joint seal
at the South Satellite at Seattle-Tacoma International Airport; 2) execute and award outside
professional service agreements; 3) pre-purchase common-use gate equipment; and 4) allow Port
Construction Services to self-perform, advertise for bids, and execute and award small works
construction contracts for common use equipment installation.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
February 22, 2011
Page 8 of 8
On September 28, 2010, the Commission authorized the Chief Executive Officer to: 1) complete
design of the entire Airport Water Isolation Valve upgrade Project; 2) execute a contract to
purchase valves and related equipment; and 3) utilize Port crews to complete installation of the
isolation valves in non-secure Airport areas.
