PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA

6b

Item No.
Date of Meeting

October 25, 2011

DATE:

October 14, 2011

TO:

Tay Yoshitani, Chief Executive Officer

FROM:

David Soike, Director, Aviation Facilities and Capital Program
Wayne Grotheer, Director, Aviation Project Management Group

SUBJECT:

Vertical Conveyance (Elevator) Modernization Project at Seattle-Tacoma
International Airport (CIP # C800251).

Amount of This Request: $2,991,850

Source of Funds: Airport Development Fund and
Existing Revenue Bonds

Total Project Cost: $11,120,000
ACTION REQUESTED:
Request Port Commission authorization to (1) prepare full design documents; (2) authorize Port
Construction Services (PCS) to perform Regulated Material Management (RMM) design and
monitoring; and (3) bid and award a major construction contract for RMM abatement in existing
elevator shafts and related spaces for the Vertical Conveyance (Elevator) Modernization Project,
Aero Phase I Project (CIP# C800251) at Seattle-Tacoma International Airport (Airport) for
$2,991,850. The total project cost is $11,120,000.
SYNOPSIS:
The Airport has developed a renewal and replacement program for both the elevators and
escalators throughout the Main Terminal and Satellites. Many of the elevators and escalators are
over 40 years old and are at the end of their service lives. The Vertical Conveyance
Modernization, Aero Phase I project, one of four individual projects in this program, will
incorporate complete elevator modernization upgrades for eight existing traction elevators and
for the addition of hydraulic oil cooling units to eleven existing hydraulic elevators in the Main
Terminal. The design work for this project will be accomplished utilizing a previously
authorized IDIQ contract. The total project cost is $11,120,000 (including $1,346,850 expense).
This request is to complete design of this elevator modernization project and to authorize the first
construction contract to remove regulated materials from all of these elevator shafts. Staff will
return in the spring to request the remaining funds and authorization to advertise and award the
follow-on construction contract for upgrading the elevators. The Port is evaluating whether it
will utilize a project labor agreement (PLA) for the RMM abatement work and/or the follow-on
elevator construction contract.

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
October 14, 2011
Page 2 of 6
BACKGROUND:
In 2000/2001 an airport-wide elevator modernization program was planned as part of the Airport
Modernization Program. However, the events of September 11, 2001, forced the Airport to
significantly scale back those plans. Of the 79 escalators and 80 elevators in the Airport
terminal, only 12 elevators and six escalators have been modernized. Since 2001, additional
elevators and escalators have been identified for modernization or upgrades due to the increased
time in service. Currently the Terminal Escalator Modernization project ($55,000,000
authorized February 1, 2011) is modernizing 42 existing escalators throughout the Main
Terminal and South Satellite and installing two new escalators in the South Satellite. This
project (Aero Phase 1- $11,120,000) will modernize eight elevators and overhaul the hydraulics
of 11 existing elevators, which were all identified as the most critical to upgrade quickly. The
follow-on projects for next year (Aero Phase 2 - $17,227,000 and Non-Aero Phase 1 $9,806,000) will modernize an additional 15 elevators and 12 escalators. After all of the above
projects are completed, 19 escalators and 34 elevators will remain at the terminal that have not
been upgraded; however, they are all less than 20 years old and have expected service lives of
five years or more remaining. The two follow-on projects for next year may be modified to
install new elevators or escalators for the South Satellite Federal Inspection Services mid-term
improvements and changes proposed by Alaska Air Group for the C Concourse, both of which
are now under study.
The elevators included in this project were installed in 1970 and 1971. Due to their age and
technology, the controls, drives and door actuators of these elevators have become uneconomical
to maintain. In addition, the replaced systems, i.e., new motors and controls, would be more
efficient and meet current energy codes, resulting in energy savings.
Elevator #
SSAF
SSB
SSC
MT-2
MT-6
MT-7
C-4

Location
South Satellite - Freight
South Satellite - Passenger
South Satellite - Passenger
Main Terminal - South/Center
Main Terminal - North/Central
Main Terminal - North
Main Terminal - End of Concourse C

Action
Modernize
Modernize
Modernize
Modernize
Modernize
Modernize
Modernize

NSCF
C-2
B
J, K, L
MT-20, MT-30,
MT-40, MT-50
D1
MT-9

North Satellite - Freight
Concourse C, Gate C-2
Main Terminal, between Ckpts #1 & #2
Main Terminal - International Carriers

Modernize
Hydraulic Cooling
Hydraulic Cooling
Hydraulic Cooling

Main Terminal - Glass Elevators

Hydraulic Cooling

Concourse D Alaska Board Room
Main Terminal, North STS Station

Hydraulic Cooling
Hydraulic Cooling

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
October 14, 2011
Page 3 of 6
PROJECT DESCRIPTION/SCOPE OF WORK:
Project Statement:
This project will provide complete modernization of the eight elevators listed above. The
comprehensive Port of Seattle elevator modernization program includes the following objectives:

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

Improve overall system reliability and performance by providing efficient microprocessor
logic for elevator dispatch and individual motor control.
Replace aged components to ensure 20+ years of reliable service without the need for
additional investments besides normal maintenance costs.
Provide Firefighters' operation to comply with current life safety code requirements.
Upgrade existing car and hoist way door equipment to provide safe and reliable
operation.
Upgrade elevator car and corridor pushbuttons and signal fixtures to comply with current
requirements of the Americans with Disabilities Act (ADA).
No "worn" parts will be retained. All installed equipment will be replaced with new
items.
Upgrade existing building conditions to comply with current National, State and City
elevator safety codes and building code requirements.
Remove regulated materials (Asbestos Fireproofing) to eliminate the cost and litigation
risk of ongoing hazardous material containment and clean-up protocol requirements in
the elevator shafts.
Work with building officials to accommodate code-required upgrades to structural
seismic and shaft wall fire rating performance criteria.
Provide components that reduce overall energy consumption.
Connect to the existing Port elevator/escalator monitoring system, LiftNet, for quick
response in case of failure.

Project Objectives:
1. Improve reliability of elevators to handle current and future passenger loads.
2. Provide a safe and reliable delivery route for concessionaires at both South and North
Satellites.
3. Improve passenger travel at South Satellite and Main Terminal by installing new ADAcompliant fixtures and signage.
4. Improve International arrivals passenger travel at South Satellite within the FIS area for
those passengers unable to use the existing escalators or stairs.
Scope of Work:
Develop infrastructure to modernize eight existing elevators and retrofit hydraulic oil cooling
systems for 11 existing hydraulic elevators. Infrastructure development will, at a minimum,
include:
1.
2.
3.
4.

Site preparation for installation of elevators and oil cooling systems.
Removal of regulated materials as required.
Installation of electrical power and control systems.
Installation of communication system.

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
October 14, 2011
Page 4 of 6
5. Installation of elevator and oil cooling equipment.
6. Installation and revisions to fire sprinkler systems.
7. Structural, electrical and mechanical revisions to the base building.
8. Commissioning of elevator systems.
9. Testing of installed elevator systems.
10. Closeout of completed project.
STRATEGIC OBJECTIVES:
Ensure Airport and Seaport Vitality
The project provides enhanced capacity and flexibility in critical terminal infrastructure, both for
airline customers and for the Airport's concessionaire customers at both the South and North
Satellites. This project supports the Airport strategy that provides world-class facilities that
anticipate and provide for the needs of travelers and customers.
Exhibit Environmental Stewardship through Our Actions
This project is in alignment with the Port's goal of improving the long-term sustainability of its
facilities and operations. This project has a generally positive effect on the environment to the
extent that modernized elevators will reduce Airport reliance on less energy efficient vertical
conveyance alternatives and will allow more efficient movement of passengers and retail
product. Passengers and tenants will benefit from faster, more reliable elevators.
FINANCIAL IMPLICATIONS:
Budget/Authorization Summary

Capital

Expense

Original Budget
Budget increase (decrease)
Revised Budget
Previous Authorizations
Current request for authorization
Total Authorizations, including this request
Remaining budget to be authorized

$10,160,000
-$ 386,850
$ 9,773,150
$
0
$ 1,645,000
$ 1,645,000
$ 8,128,150

$ 960,000 $11,120,000
$ 386,850 $
0
$1,346,850 $11,120,000

Project Cost Breakdown - RMM Expense
Construction costs (RMM)
Sales tax (RMM)
Total

This Request
$1,230,000
$ 116,850
$1,346,850

$1,346,850
$1,346,850
$
0
Total Project
$1,230,000
$ 116,850
$1,346,850

Total

$ 2,991,850
$ 2,991,850
$ 8,128,150

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
October 14, 2011
Page 5 of 6
Project Cost Breakdown - Capital
Construction costs
Sales tax
Outside professional services
Aviation PMG and other soft costs
Total
Totals: Capital and Expense

This Request
$
0
$
0
$1,045,000
$ 600,000
$1,645,000
$2,991,850

Total Project
$ 6,350,000
$ 603,250
$ 1,045,000
$ 1,774,900
$ 9,773,150
$11,120,000

Source of Funds
This project (CIP # C800251) was included in the 2011-15 capital budget and plan of finance as
a business plan prospective project. The funding source will be existing revenue bonds.
Expense funds (Airport Development Fund) will be used for the RMM abatement major
construction contract, and supporting/monitoring work to be performed by Port Construction
Services.
Financial Analysis

CIP Category
Project Type
Risk adjusted Discount rate
Key risk factors
Project cost for analysis
Business Unit (BU)
Effect on business performance
IRR/NPV
CPE Impact

Renewal/Enhancement
Infrastructure Upgrade
N/A
N/A
$9,773,150
Terminal Cost Center
NOI after depreciation will increase
N/A
Will increase CPE by $.04 by 2014. However, no
change to business plan forecast since this project
was included. The expense costs will cause CPE to
increase on a one-time basis by $.08 spread over two
years (approximately $.04 in 2012 and 2013)

There are no anticipated increases in annual elevator O&M costs associated with this project.
ECONOMIC IMPACTS:
The Port will spend less maintenance funds on emergency and/or urgent repairs to existing
vertical conveyance equipment.
ENVIRONMENTAL SUSTAINABILITY/COMMUNITY BENEFITS:
There are significant benefits with reductions in handling of concessionaire's retail product on
the ramp, as they will be able to use freight elevators, in lieu of service elevators or freight
elevators that are not co-located where their retail product is stored. Reduced ramp vehicular
traffic will result in lower fuel consumption and therefore less carbon air emissions.

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
October 14, 2011
Page 6 of 6
TRIPLE BOTTOM LINE SUMMARY:
This project will provide tangible improvements to the Airport's vertical circulation capability.
Passengers will be able to depend on reliable vertical circulation means to safely and quickly
move between floors in the South Satellite, Concourse C and Main Terminal. In addition, the
modernized freight elevators will allow goods to be reliably delivered to the concession storage
areas, and safely and efficiently retrieved by concession tenants when needed. Reduced freight
and service use of passenger elevators in the North and South Satellite will also enhance
passenger travel experiences.
PROJECT SCHEDULE:
(For the Capital Funded Major Construction Contract)
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Commission Authorization to Start Design
Start Design
Design Complete
Commission Authorization to Bid and Increase Budget
Bid Advertisement
Commission Authorization to Award
Construction Start
Construction Complete

October 2011
November 2011
June 2012
June 2012
July 2012
August 2012
October 2012
December 2013

(For the Expense funded RMM Major Construction Contract)
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Commission Authorization to Bid and Increase Budget
Design Start
Design Complete
Bid Advertisement
Commission Authorization to Award (if necessary)
Construction Start
Construction Complete

October 2011
October 2011
November 2011
November 2011
December 2011
January 2012
August 2013

ALTERNATIVES CONSIDERED/RECOMMENDED ACTION:
Alternative 1: The age and their obsolete technology require these elevators to be modernized to
current standards. This is the recommended alternative.
Alternative 2: The "Do Nothing" alternative results in continued customer service disruptions
and increased maintenance costs. Many parts are no longer available and have to be custom
manufactured, where possible. At some point in time, even custom fabricated replacement parts
will not be available, and the elevators will be modernized using maintenance funds, all at a
greater cost than proceeding with a designed and competitively bid modernization project.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS:
None.
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST:
Map - Key Plan, Vertical Conveyance Modernization, Aero Phase 1