Template revised September 22, 2016.

COMMISSION

AGENDA MEMORANDUM

Item No.

ACTION ITEM

Date of Meeting

November 14, 2017

DATE: November 7, 2017

TO: Dave Soike, Interim Executive Director

FROM: Michael Ehl, Director Airport Operations

Wayne Grotheer, Director, Aviation Project Management

SUBJECT: 2018 Taxiway Improvement Projects C800914

Amount of this request:

$39,685,000

Total estimated project cost:

$47,500,000

ACTION REQUESTED

Request Commission authorization for the Executive Director to: (1) advertise and execute a

single major works construction contract comprised of Taxiways A/B Reconfiguration; Taxiway L

Relocation; Taxiway Q Mitigation; 2018 Airfield Pavement Replacement Projects; B Concourse

IWS Upgrade; and Taxiway H Signage herein to be referred to as 2018 Taxiway Improvement

Projects and (2) award an irregular bid or bid greater than 10% over engineers estimate, should

that occur, with Commission notification only provided the total project remains within

authorized budget.

EXECUTIVE SUMMARY

This project consists of taxiway, runway and apron modifications, reconfiguration, repairs and

relocation for safety and continued operational access by aircraft. This project also includes

improvement to the industrial waste system and new taxiway signage. Originally this project

was driven by the expansion of the North Satellite (NSAT) triggering the need to reconfigure the

adjoining Taxiways A/B. Due to the proximity of Taxiway L to the Taxiway A/B work, the FAA

has required that Taxiway L be brought into compliance with current FAA design standards by

being relocated to minimize potential aircraft runway incursions. This relocation requires a

closure of Runway 16L/34R. This closure provides the opportunity to proceed with fixing

another safety concern at the intersection of Taxiway Q as well as needed runway repairs.

Based on the complexities of coordination, similar work, seasonal construction limitations and

runway use restrictions, it was decided that the many 2018 airfield work projects should be

combined into a single airfield contract to best coordinate airfield construction phasing in the

safest and most efficient manner.

COMMISSION AGENDA – Action Item No. __4g__ Page 2 of 10

Meeting Date: November 14, 2017

Template revised September 22, 2016; format updates October 19, 2016.

The request to notify rather than return to the Commission for authorization to award an

irregular bid, provided there are sufficient project funds, is unusual. The request is made to

reduce the risk of impact to the International Arrival Facility (IAF) project. The IAF needs the

phase 1 work in this project to be complete by May 31, 2018 so aircraft can be shifted from

Hardstand 2 to Hardstand 6 and assembly of the IAF pedestrian bridge can occur. The schedule

is particularly tight due to the delivery being advanced to avoid having the work occur after

Memorial Day when the travel demand increases.

A Project Labor Agreement (PLA) was previously authorized for this project. FAA reviewed the

PLA and notified staff that certain sections do not comply with federal regulations that require

full and open competition. Organized labor relayed to staff that these sections are key terms of

the PLA that they are unwilling to change. Port staff have worked with both parties and now

have a preliminary verbal agreement for modified verbiage that appears acceptable to each

party. Staff continues to recommend that a PLA be used on this project to reduce schedule risk

issues.

JUSTIFICATION

A new capital improvement project (CIP) was established for the relocation of Taxiway L and

modification of Taxiway Q. Because of their close proximity and similar work the previously

authorized funds for the Taxiway A/B work, under CIP C800556 North Satellite Renovations &

NSTS Lobbies project, were transferred and combined with Taxiway L/Q into a single CIP

C800914 and major construction contract. Three other CIP’s C800483, C800913 and C800406

have also be combined into CIP C800914 2018 Taxiway Improvement Projects to facilitate the

administration of the combined project and to avoid delays that would occur should the bid

result in an individual CIP having insufficient budget.

Taxiway A/B Reconfiguration: This is an enabling project to the NSAT project which must be

completed by January 2019 to facilitate North Satellite phase one expansion opening.

Taxiway L Relocation/Taxiway Q Modification: Due to the proximity of Taxiway L to the

adjacent Taxiway A/B Reconfiguration, the FAA required that Taxiway L be brought into

compliance with the current FAA design standards and be relocated. With the corresponding

closure of Runway 16L/34R the Taxiway Q Runway Incursion Mitigation (RIM) intersection will

be modified.

2018 Airfield Pavement Replacement Projects: This project replaces individually identified

distressed and or damaged concrete panels, asphalt, and joint sealant for the 2018 portion of

the 2016-2020 Airfield Pavement Program.

B Concourse IWS Upgrade: Modifications to the B Concourse IWS System between gates B5 –

B7 will install a new flush gutter section to complete connection. This portion of the contract

has previously been authorized for both design and construction.

COMMISSION AGENDA – Action Item No. __4g__ Page 3 of 10

Meeting Date: November 14, 2017

Template revised September 22, 2016; format updates October 19, 2016.

Taxiway H Signage: This sign will improve safety for this area. This work is part of the RW

16C/34C Reconstruction project that has previously been authorized for both design and

construction.

DETAILS

Taxiways A/B Reconfiguration was the initial enabling project required for the new aircraft gate

parking positions in the Phase One opening of the NSAT project. Because the NSAT expansion

pushes the existing terminal to the west, the related parked aircraft will protrude into the

existing, adjacent taxilane. This requires that the adjacent taxilane and taxiways be

reconfigured to accommodate the expansion, maintain airport operational efficiency and

maintain required aircraft separation distances. At the initial Preliminary Hazard Assessment

(PHA) of the Taxiway A/B Reconfiguration, the current location of Taxiway L was identified as a

potential hazard that the FAA is requiring the Port to relocate as risk mitigation.

Taxiway L was constructed prior to the current FAA guidance regarding direct access from a

ramp area to a runway. To bring Taxiway L up to current design standards it is being relocated

approximately 300 feet to the south and will provide a definitive turning movement for aircraft

prior to entering the adjacent runway. As part of this relocation project the runway and

taxiway pavement markings will also be modified to further improve situational awareness and

minimize safety risk. Reconstruction of Taxiway L requires the closure of Runway 16L/34R. This

runway closure brought opportunity to complete other needed improvements, which also

required that the runway be closed. Additional work requiring runway closure is the Taxiway Q

mitigation.

The FAA has designated the intersection of Taxiway Q and Taxiway B as a safety RIM as a result

of numerous runway incursions in this location. The RIM designation alerts pilots that the

location is potentially problematic. The FAA has not been able to provide definitive reasons for

the incursions at Taxiway Q, but have colloquially indicated that the taxiway centerline

configuration may play a part. As a step toward RIM mitigation, the centerline alignment will

be modified.

As part of the continuing safety assurance at SeaTac there is an established Airfield Pavement

Replacement Program. The required closure of Runway 16L/34R provides opportunity for joint

seal and concrete panel replacement to occur simultaneously with the Taxiway L relocation.

Gate reconfiguration at B Concourse completed in 2017 converted 4 wide body gates to narrow

body gates allowing flexibility for 6 narrow body aircraft. Currently the area between Gates B5

and B7 does not have adequate Industrial Waste System (IWS) infrastructure supporting deicing

activities. This project will upgrade the IWS system to capture glycol from deicing activities and

provide flexibility to our airline operations.

COMMISSION AGENDA – Action Item No. __4g__ Page 4 of 10

Meeting Date: November 14, 2017

Template revised September 22, 2016; format updates October 19, 2016.

The need to add a sign at Taxiway H was identified after the contract for the center runway

reconstruction, that included the relocation of Taxiway H, was complete.

One of the Century Agenda goals is to use the Port’s influence as an institution to promote

small business growth and workforce development. Port staff is coordinating with Economic

Development Division’s Small Business Group to identify potential opportunities within the

scope of work for small business utilization. This project may include federal assisted fund

which would require the utilization of the U.S Department of Transportation’s small business

program per 49 CFR Part 26 - Disadvantage Business Enterprise (DBE) requirements.

CRITICAL ISSUES

This construction contract was initially planned using a typical construction window of May

through September 2018. Due to operational concerns and other projects’ constraints, the

project will have critical work occur in 2 key phases outside of this period. Schedule constraints

include the following:

1) Runway closures between Memorial Day and Labor Day are not desirable due to high

traffic volumes,

2) IAF bridge construction is dependent upon the initial phase of this project being

complete by May 31, 2018,

3) NSAT Phase 1 completion scheduled for January 2019 opens new gates on the west side

of the terminal is dependent upon the completion of the 2018 Taxiway A/B and L work.

The new gates that are critical to allow renovation of the existing terminal to proceed

under NSAT Phase 2 scheduled to be complete in July 2021.

In order to address the schedule constraints, a portion of the work will occur in April to May

2018. The early construction advertisement date necessitated by this has resulted in there

being only one week of float remaining in the project schedule for advertisement, award, and

notice to proceed. The 2

phase work requiring a runway closure has been shifted to begin

immediately after Labor Day.

There are a number of risks associated with this project including:

1) Delay in being able to begin work due to construction bid outcomes such as a bid

protest being received or the low bid being more than 10% over the Engineer’s

Estimate. The project schedule contains almost no float. Should a delay occur in

awarding the contract, it would have a domino effect that would likely delay assembly

of the pedestrian bridge for the IAF project.

2) Weather, bid protests, and other such external factors could occur and are difficult to

mitigate in advance.

3) Labor unrest could affect delivery of the project. There are at least six union contracts

that are expected to be used on this project that will expire on 5/31/18. A PLA is

typically utilized on airfield projects to reduce the risk of work stoppage. Accordingly,

staff continues to recommend that a PLA be used on this project to reduce risk. Even

COMMISSION AGENDA – Action Item No. __4g__ Page 5 of 10

Meeting Date: November 14, 2017

Template revised September 22, 2016; format updates October 19, 2016.

with the use of a PLA, offsite labor, such as for the delivery of materials, is not a part of

the PLA.

4) Completion of the initial phase of work by 5/31/18 so the IAF bridge construction can

proceed. The projects are linked as the detour route for Taxiway A during April to May

construction encumbers Hardstand 6 and the IAF work will need to shift aircraft from

Hardstand 2 to Hardstand 6 for the bridge assembly to occur.

5) Beginning work after Labor Day that is anticipated to extend into December will be

highly dependent upon favorable weather, a scarce commodity at that time of year, and

the ability for the Contractor to access the airfield, which may be prevented during fog

or other such conditions. The late start of work could cause the work the re-opening of

RW 16L/34R to be delayed. Since this runway is the longest and closest to the terminal,

an extended closure has an extremely high impact on airport operations. During poor

visibility conditions the airport may go into Surface Movement Guidance and Control

Systems (SMGCS) and the airport will then be limited to a single runway. Once the 2

phase of airfield construction begins, the work then must be completed and deleting

scope is not a mitigation option. The nature of the work; excavation, lighting, and

utilities, within the runway and taxiway safety areas cannot be left unfinished or open.

6) Should the 2

phase of airfield construction, which closes the runway, extend to late

January 2019, the NSAT Phase 1 opening of gates that allows work to continue on NSAT

Phase 2 and to maintain airline operations would be impacted.

Mitigation measures continue to be developed and will need to be reexamined as the project is

delivered. Current mitigation measures include:

1) Request for approval to notify rather than return to the Commission should an irregular

bid occur and for the contract to be awarded as long as there are sufficient authorized

funds will help to avoid delays in the project proceeding.

2) Appropriate measures to ensure the initial phase of work is complete before the current

union contracts expire on 5/31/18 will be used.

3) Staff is working with FAA and the airlines to examine the potential earlier start of the 2

phase of work to reduce risk that occurs with construction in the fall and winter. This

would also help to avoid or mitigate the domino of impacts that could occur to airport

operations and the NSAT project should completion of this work be delayed by weather.

4) As mentioned above, weather, bid protests, and other such external factors are difficult

to mitigate in advance but will be monitored, communicated and addressed at the time,

should they occur.

Scope of Work

1) Relocate Taxiway L

2) Adjust Taxiways B/Q centerline radii to include adjustment of in-pavement taxiway

centerline lights and pavement marking

3) Modify and realign Surface Movement Ground Control (SMGC’s) lights and connection

centerlines between Taxiway A, Taxiway B and entrance to North Satellite taxilane

4) Replace damaged asphalt with concrete at South Satellite

COMMISSION AGENDA – Action Item No. __4g__ Page 6 of 10

Meeting Date: November 14, 2017

Template revised September 22, 2016; format updates October 19, 2016.

5) Replace distressed/damages concrete panels at various locations on airfield

6) Install flush gutter at Concourse B

7) Install new signage at Taxiway H

Schedule

Construction has been scheduled in coordination with overall airport operations to minimize as

possible the disruption to the heaviest periods of airline operations during peak summer

season. Portions of the work will be performed early in the spring, with the majority of work

requiring Runway 16L/34R closure to begin after Labor Day, if it cannot be advanced to earlier

in August.

Commission design authorization

2017 Quarter 1

Design start

2017 Quarter 1

Commission construction authorization

2017 Quarter 4

Construction start

2018 Quarter 2

In-use date

2018 Quarter 4

Cost Breakdown

This Request

Total Project

Design

$314,000

$4,115,000

Construction

$39,371,000

$43,385,000

Total

$39,685,000

$47,500,000

ALTERNATIVES AND IMPLICATIONS CONSIDERED

These alternatives are for the contract as a whole with emphasis on the major portions of work

being Taxiway A/B Reconfiguration and Taxiway L Relocation.

1. Status Quo – No Construction

Cost Estimate: $0 direct cost

Pros:

• No runway closures

Cons:

• Curtailment of the NSAT project expansion – will not be able to proceed without

changes to the taxiways.

• Elimination of two-way directional taxiway movement at the NSAT area.

• Disruption of airline movement positioning operations north to south

• Air Traffic Control delays – aircraft movement to, from and around the North

Satellite and aircraft movement north and south for take-offs

This is not the recommended alternative

COMMISSION AGENDA – Action Item No. __4g__ Page 7 of 10

Meeting Date: November 14, 2017

Template revised September 22, 2016; format updates October 19, 2016.

2. Separate Construction Contracts

Cost Estimate: $ 49,875,000

* previously estimated $50,000 cost increase each time large aircraft cannot use Runway

16L/34R for takeoff.

Pros:

• Separation of funding

• Single design consultant

• Not all portions of the single contract require FAA tracking/reporting

Cons:

• Additional Runway 16L/34R closures

• Significant operational and cost increases to airlines

• Will not meet FAA deadlines for Taxiway L relocation

This is not the recommended alternative

3. Single Major Construction Contract

Cost Estimate: $47,500,000

Pros:

• Meet construction deadlines for NSAT program

• Single Runway 16L/34R closure of the shortest duration

• Single construction season reducing airline and airport operational disruptions

• Best construction coordination to minimize cost and operational impacts to airlines

Cons:

• Runway closure required for construction

This is the recommended alternative

COMMISSION AGENDA – Action Item No. __4g__ Page 8 of 10

Meeting Date: November 14, 2017

Template revised September 22, 2016; format updates October 19, 2016.

FINANCIAL IMPLICATIONS

Capital

Taxiway A/B

Taxiway L/Q

2018 Pavement

B Concourse

IWS

Taxiway H

Signage

Total

COST ESTIMATE

Original estimate

$3,045,000

$9,700,000

$20,000,000

$1,750,000

$250,000

$34,745,000

Current cost

increase/(decrease)

$6,955,000

$10,300,000

($4,500,000)

$12,755,000

Revised estimate

$10,000,000

$20,000,000

$15,500,000

$1,750,000

$250,000

$47,500,000

AUTHORIZATION

authorizations

$3,045,000

$1,750,000

$1,020,000

$1,750,000

$250,000

$7,815,000

Current request for

authorization

$6,955,000

$18,250,000

$14,480,000

$39,685,000

Total

authorizations,

including this

request

$10,000,000

$20,000,000

$15,500,000

$1,750,000

$250,000

$47,500,000

Remaining amount

to be authorized

Taxiway A/B

The initial Taxiway A/B design authorization and project construction estimate were approved

in the overall NSAT project C800556. The initial Taxiway A/B Reconfiguration project estimate

was $3.2M. The original scope and estimate was based on only needing to make small

adjustments to the centerline with removal of and realigning with paint. The scope and

estimate increased with the determination that in-pavement lighting needed to be relocated

including concrete panel removal and replacement. Finally the addition of the FAA

requirement for additional taxiway separation and reconfiguration required a new design

CIP Budget CIP Auth

Current C800914 23,500,000$ 4,795,000$

Plus Transfers:

C800406 RW 16C-24C Design - U00407 250,000 250,000

C800483 Airfield Pavement - U00349 22,000,000 1,020,000

C800913 Concourse B IWS Upgrade - U00398 1,750,000 1,750,000

Net After Transfer 47,500,000$ 7,815,000$

C800914 Taxiway Improvement

COMMISSION AGENDA – Action Item No. __4g__ Page 9 of 10

Meeting Date: November 14, 2017

Template revised September 22, 2016; format updates October 19, 2016.

package, additional excavation, and additional pavement; all together increasing the project

estimate to $10,000,000.

The authorized and budget amount of $3,045,000 has been transferred from the NSAT program

CIP C800556 to the Airfield program 2018 Taxiway Improvement Projects CIP C800914.

Taxiway L/Q

Increase in details of scope have resulted in estimate and budget increase due to several

impacts.

1) Lessons learned in previous projects previously utilizing on-sight concrete batch plant

regarding waste water management.

2) Additional increase is due to extensive Storm Water Management and Temporary

Erosion and Sediment Control (TESC) within such constrained areas next to runway.

3) Removal and replacement of concrete panels where abandoned taxiway light cans are

to be removed.

2018 Pavement Program

The Airfield Pavement Program (C800483) is included in the 2018-2022 capital budget and plan

of finance with a budget of $32,500,000. The 2018 portion is estimated at $22,000,000. The

authorized $1,020,000 and remaining budget of $20,980,000 has been transferred from

C800483 to the 2018 Taxiway Improvement Projects CIP C800914.

B Concourse IWS Upgrade

The authorized and budget amount of $1,750,000 has been transferred from C800913 to the

2018 Taxiway Improvement Projects C800914.

Taxiway H Signage

The authorized and budget amount of $250,000 has been transferred from C800406 to the

2018 Taxiway Improvement Projects CIP C800914.

Annual Budget Status and Source of Funds

Capital project C800914 2018 Taxiway Improvement Projects was included in the 2017-2022

capital budget and plan of finance. The budget increase of $12.7M was transfer from C800483

Airfield Pavement Program. The funding sources would be Airport Development Fund and

future revenue bonds. The Port will be submitting the Airport Improvement Program (AIP)

grants, estimated at $13 million for the use of 2017 and 2018 Entitlements.

Financial Analysis and Summary

Project cost for analysis

$47,500,000

Business Unit (BU)

Airfield Apron Area and Airfield Movement Area

Effect on business performance

NOI after depreciation will decrease

COMMISSION AGENDA – Action Item No. __4g__ Page 10 of 10

Meeting Date: November 14, 2017

Template revised September 22, 2016; format updates October 19, 2016.

(NOI after depreciation)

IRR/NPV (if relevant)

N/A

CPE Impact

$0.13 in 2019, $0.18 without grants

ATTACHMENTS TO THIS REQUEST

Diagram of 2018 Taxiway Improvement Projects

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS

Taxiways A/B/L/Q

March 14, 2017 – The Commission authorized design funds for construction documents for

Taxiways L and Q, to transfer budget and authorization from the NSAT project, and

approved use of PLA.

May 24, 2016 – The Commission authorized the NSAT increase of project scope and budget

that included Taxiway Lighting and Panel Replacement of $3.2M.

2018 Pavement Replacement

May 9, 2017 – The Commission authorized design funds for construction documents for

replacement of distressed pavement and joint seal replacement in the 2018 portion of

the 2016-2020 Pavement Program, and approved use of PLA.

October 25, 2016 – The Commission authorized advertisement and execution of contract

for retrofits of 400 Hz In-ground power units and reconstruction of existing pavement at

Cargo 2.

February 24, 2015 – The Commission authorized design funds for construction documents

for replacement of distressed pavement and joint seal replacement in the 2016 portion

of the 2016-2020 Pavement Program.

B Concourse IWS Upgrade

October 25, 2016 – The Commission authorized capital spending for design and

construction of Port utility and supportive infrastructure work associated with the

Concourse B gate reconfiguration.

Taxiway H Signage

December 2, 2014 – The Commission authorized advertisement and execution of the

Runway 16C/34C reconstruction that included the reconfiguration of Taxiway H.