PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
5d
Date of Meeting
August 23, 2011
DATE: August 16, 2011
TO: Tay Yoshitani, Chief Executive Officer
FROM: Mike Ehl, Director, Airport Operations
Wayne Grotheer, Director, Aviation Project Management Group
SUBJECT: POS Maintenance Warehouse Building 2 Demolition
(WP# 200101; CIP C001760)
Amount of This Request: $ 0 Source of Funds: Airport Development Fund
Third Runway Project Authorization to Date Including this Request: $1,128,956,000
State and Local Taxes Paid Expected to be paid: $83,000 (total demolition project)
Total Estimated Project Costs: $1,351,000 Jobs Created: 20
ACTION REQUESTED:
Request Port Commission authorization for the Chief Executive Officer to advertise and execute
a major construction contract for the POS Maintenance Warehouse Building 2 demolition,
located within the South Runway Protection Zone (RPZ) of Runway 16R/34L (also known as the
Third Runway). The budget for this request is included in the previously authorized budget for
the Third Runway Project.
SYNOPSIS:
The vacant POS Maintenance Warehouse Building 2 is the last remaining building to be
demolished as part of the construction and activation of Runway 16R/34L. The Federal Aviation
Administration (FAA) safety regulations require vacation of the RPZ which lies directly to the
south. No additional budget is necessary to complete this demolition project. It will be
competitively bid.
BACKGROUND:
The final phase of demolition within the South RPZ of Runway 16R/34L was authorized in
August of 2006. With numerous delays in the construction of the new POS Maintenance facility,
permission was granted by the FAA to extend the occupancy of this final building within the
South RPZ until the new Maintenance Facility could be completed. The Maintenance Facility
has now been completed and the old POS Maintenance Warehouse Building 2 is vacant and
ready for demolition.
This authorization will allow construction bids to be obtained for the scope of work under the
overall Third Runway Project. Although the runway is operational, certain projects associated
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
August 11, 2011
Page 2 of 4
with the runway must be completed as required by other agencies like the FAA and before the
overall project will be complete. No additional budget is being requested. Sufficient budget for
this work within the Third Runway Project has already been authorized by the Commission.
The cost of this work is estimated to be $1,351,000.
PROJECT JUSTIFICATION:
Project Objectives:
This project’s objective is to demolish the POS Maintenance Warehouse Building 2, located in
the South RPZ for Runway 16R/34L as directed by the FAA, in accordance with approval of the
Third Runway project.
PROJECT SCOPE OF WORK AND SCHEDULE:
Scope of Work:
All utilities to the warehouse are to be shut down and abandoned. The building will be abated
for regulated materials, and the building will be demolished to the foundation level. Two
driveways adjacent to Des Moines Memorial Drive will be removed and replaced with
appropriate sidewalks and landscaping as required by the City of SeaTac.
Schedule:
Commission Authorization to Advertise August 2011
Advertise August 2011
Notice to Proceed December 2011
FINANCIAL IMPLICATIONS:
Budget/Authorization Summary:
Original Preliminary Budget (1997)
$587,362,000
Budget increases
$541,594,000
Revised budget (2003)
$1,128,956,000
Costs charged to public expense
-$25,942,329
Budget Savings
-$ -136,264,868
Revised Budget
$966,748,803
Previous authorizations
$1,128,956,000
Current request for authorization
$0
Total Authorizations, including this Request
$1,128,956,000
Remaining budget to be authorized
$0
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
August 11, 2011
Page 3 of 4
Project Cost Breakdown:
$905,000
$83,000
$250,000
$1,351,000
Budget Status and Source of Funds:
This project is included in the 2011-15 capital budget and Plan of Finance within the Third
Runway Program (CIP #C001760). The funding source will be the Airport Development Fund.
Financial Analysis and Summary:
These estimated costs will not cause the total projected costs to exceed the revised budget, and
will not affect cost per enplanement (CPE) as these projects were already included in the CPE
forecast. While the cost for this requested action will increase CPE by less the $.01, there is no
change to the business plan forecast as this project was included.
Lifecycle Cost and Savings:
There is no life cycle cost associated with the demolition of this project.
ENVIRONMENT AND SUSTAINABILITY:
This demolition project is utilizing the Port’s new Construction Waste Management
specification. The specification requires the contractor to divert at least 75% of construction,
demolition, or land clearing materials from the project through salvage, reuse, or recycling.
This building was found to contain regulated levels of polychlorinated biphenyls (PCBs). Prior
to the demolition of the building, the construction contractor will be responsible for removal of
all PCB containing materials. Aviation Environmental Programs will manage disposal of these
materials in coordination with the removal by the contractor.
STRATEGIC OBJECTIVES:
This project supports the Port’s strategy to “Ensure Airport and Seaport Vitality.”
BUSINESS PLAN OBJECTIVES:
Demolition of identified buildings within the South RPZ of Runway 16R/34L is in compliance
with the safety concerns and regulations outlined by the FAA.
TRIPLE BOTTOM LINE SUMMARY:
Demolition of this building in the South RPZ is a requirement of the FAA regarding life safety in
the vicinity of Runway16R/34L. Final agreement with the FAA stated that the building would
be demolished by the end of 2011. It is the Port’s understanding that beginning demolition of the
POS Maintenance Warehouse Building 2 by the end of 2011 is acceptable to FAA.
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS:
Alternatives in this project have been exercised in the delays previously requested of the FAA in
order that the POS Maintenance could remain in the building until a more appropriate site could
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
August 11, 2011
Page 4 of 4
be constructed. The alternative of further delaying demolition of the building or to not demolish
the building would result in the Port not complying with FAA safety regulations. Neither of
these alternatives is recommended. The recommendation is to proceed with the demolition
project as currently scheduled in order to fulfill the Port’s commitment to FAA and comply with
FAA safety regulations.
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST:
Attachment A – map and photo showing proximity of demolition project and relation to the
airport and runways.
PREVIOUS COMMISSION ACTION:
On August 1, 1996, the Commission adopted Port Resolution No. 3212, as Amended, approving
the Master Plan Update for Airport, including development of a new dependent air carrier
runway, and authorizing initial development work for the Runway project.
On May 27, 1997, the Commission authorized $587,362,000 for completion of the Runway
project to be completed by 2004.
On June 22, 1999, the Commission authorized an additional $186,000,000, increasing the total
authorization to $773,362,000. At that time, it was estimated permitting would be finalized by
December 1999 and the Runway project would be complete by fall 2006.
On June 24, 2003, the Commission was briefed on additional costs from delays, permit
conditions, market conditions, scope of project, and FAA requirements. At that time, the
Runway project was scheduled to be completed at the end of 2008.
On October 11, 2005, the Commission authorized an additional $125,000,000 increasing the total
authorization to $898,362,000.
On September 26,
2006, the Commission authorized an additional $219,594,000 increasing the
total authorization to $1,128,956,000.