PORT OF SEATTLE

MEMORANDUM

DATE: July 19, 2011

SUBJECT: Temporary Backup Power at Seattle-Tacoma International Airport (WP 104570)

Amount of This Request: $3,100,397 Source of Funds: Airport Development Fund

State and Local Taxes Paid: $235,000 Jobs Created: 32

ACTION REQUESTED:

Request Commission authorization for the Chief Executive Officer (CEO) to (1) update and

complete design and provide construction support using an existing indefinite delivery/indefinite

quantity contract; (2) execute one-year contracts, with options to renew for four one-year

periods, to lease or purchase nine two-megawatt generators and associated equipment and

material; (3) advertise and execute a major construction-project-specific, unit-price contract; and

disruption of electrical power from Puget Sound Energy (PSE). Five generators will be installed

at the South Main Substation (SMS) and four generators will be installed at the North Main

Substation (NMS) as shown on Attachment A. Installation includes transformers, switchgear,

cabling, fuel tanks, control equipment, remote metering, trailers to house control equipment,

fencing, fuel systems, and initial fueling to be completed by November 2011 with demobilization

of each facility by April 2012. Funding for the final two months of 2011 is included in the

previously approved annual operating budget, while funds for 2012 will be included in the

budget process this fall. The costs for this project will be recovered through electricity rates to

airport tenants. This project has been approved by the airlines.

BACKGROUND:

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USACE noted that the risks associated with the dam would last up to five years. Subsequently,

the USACE have made modifications to the dam such that the risk of failure is about 1 in 60 this

winter. As a result, during the winter season storms, water may have to be released to the Green

River and threaten breach of the dikes. Should this occur, PSE facilities could be at risk of

damage/failure resulting in a loss of power to the Airport.

On October 15, 2009, a Declaration of Emergency was declared by the CEO and a project was

initiated to install temporary backup power in the event of power loss. By early December, all

nine generators and the attendant equipment were installed and were ready to activate if needed.

hazards. In October 2010, the system was installed again, and in March 2011 was removed;

however, the site work and cabling remained for use again this season.

For the 2011 to 2012 winter, staff is attempting to have the system operational by November 1,

2011, the approximate start of seasonal heavy rains and winter season storms. This request is for

the expense funds needed in 2011 ($1,528,325) and in 2012 ($1,572,072) to install and lease the

equipment, purchase enough fuel to test the system, and run it for approximately eight hours.

This request does not include the cost of fuel to run the system for an extended period should

storm or dam situations warrant it. Those costs, if incurred, will be approximately $92,000 per

day of operation depending on cost of diesel fuel, however the fuel cost pales in comparison to

business disruption impacts if the airport is without power for an extended period of time.

storm season. We estimate the cost of equipment to be $1,951,293 for the 2011 to 2012 winter.

Through the competitive process, the Port will have the option to lease (or purchase) the

generators and ancillary equipment for 2011 to 2012, with an option to renew for four one-year

periods.

Port Construction Services (PCS) will be utilized again this year to self-perform work in

conjunction with a competitively procured major construction-project-specific, unit-price

contract. Airport maintenance staffing will be used to provide all switching, monitor installation

and testing, and operate the system when needed. The Port of Seattle will use an existing open-

order contract to procure the diesel fuel.

The Airport’s decision to install temporary backup power generation in 2009 also caused the

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other major disruption would have on their operations. As a result, the Airport Airline Affairs

Committee (AAAC) has expressed a willingness to consider installing a permanent electrical

generating system at the SMS in the future. The AAAC is beginning a benefit-cost analysis in

this regard. The scope and cost estimate for a future project has not been developed but would

probably be in the range of $30 million and take multiple years to permit, design, and construct.

• Provide 18 megawatts of continuous electrical power if needed.

• Reduce impacts to Airport operations during power interruption(s).

• Minimize down time if loss of electrical power occurs.

• Complete project on schedule and within budget.

• Utilize the same design documents from last year’s project.

• Re-utilize as much salvaged material as possible from last year’s project (cables,

supports, etc.).

PROJECT SCOPE OF WORK AND SCHEDULE:

This project will provide all necessary equipment, material, and construction to provide

• Project Demobilization March 2012

FINANCIAL IMPLICATIONS:

Budget/Authorization Summary:

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Budget Status and Source of Funds:

Project funding will be drawn from 2011 and 2012 Expense Funds.

This project will incur costs of $1,528,325 in 2011 that were included in the Aviation Division

2011 expense budget. The 2012 costs of $1,572,072 will be included in the 2012 expense

budget. All costs will be incorporated into the electrical utility rates that are either metered and

billed to tenants, or allocated to Aviation cost centers. Approximately 57% of electrical costs are

ENVIRONMENT AND SUSTAINABILITY:

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