Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
6f
ACTION ITEM
Date of Meeting
March 27, 2018
DATE: March 19, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Wayne Grotheer, Director, Aviation Project Management Group
Michael Ehl, Director, Airport Operations
SUBJECT: Concourse B Ramp Level Holdroom (CIP #C800761)
Amount of this request:
$436,000
Total estimated project cost:
$5,994,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to add scope and increase the
Concourse B Ramp Level Holdroom project budget by $436,000 in order to complete and
upgrade the Concourse B ramp level holdroom at Seattle-Tacoma International Airport. The
new authorized total project cost will be $5,994,000.
EXECUTIVE SUMMARY
This project converted approximately 3,400 square feet of ramp level office and service spaces
into passenger holdroom space needed for off-gate/hardstand operations for use when all
gates are occupied.
This project was authorized for construction in July 2016. Construction bids were opened on
October 25, 2016, and additional authorization and budget was received on November 8, 2016.
Construction as a part of the construction contract is now substantially complete. This request
addresses anticipated project cost increases that can no longer be absorbed by the project
budget, increases the budget to be in line with the estimate at completion cost, and
accommodates scope additions made during the course of construction.
JUSTIFICATION
The need for increased gate capacity is driven by: (1) recent significant growth in enplaned
passengers and operations and (2) construction activities that will take several existing gates
out of service during the International Arrivals Facility and North Satellite renovation and
expansion projects. The Airport will face a severe shortage of contact gates for at least the next
decade.
COMMISSION AGENDA – Action Item No. __6f__ Page 2 of 5
Meeting Date: March 27, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Sea-Tac Airport has the highest gate utilization rate of any large hub airport in the country. The
current Signatory Lease and Operating Agreement (SLOA) outlines specific protocols for gate
utilization. These protocols include secondary user rights on leased gates, defined periods of
use on all gates, and a specific hierarchy for assignment of carriers to common-use gates. At
this time there is very little or no opportunity to further leverage existing protocols to increase
gate utilization. Since every gate will be in use and every holdroom will be occupied, when
hardstand operations are activated the Airport needs to provide a waiting area and equipment
to process passengers for these flights.
The Concourse B location offers convenient access to the ramp for busing and also convenient
access to the Satellite Transit System for passengers who need to access other areas of the
Airport.
Project Objectives
1. Provide a dedicated common-use holdroom and passenger processing space for use
during hardstand operations.
2. Provide additional capacity within the existing building footprint to increase productivity
of existing air terminal facilities.
DETAILS
Scope of Work
Overall, this project converted approximately 3,400 square feet of ramp level office and service
spaces into passenger holdroom space needed for off-gate/hardstand operations. The
holdroom has been designed to have a capacity for more than 200 people to be able to process
two flights with staggered departure times.
Specific to this request, the scope additions include the following:
(1) Upgrades to the vestibule that connects the building elevator to the holdroom. This
will improve the experience of passengers transiting this space and is required to
satisfy Americans with Disabilities Act concerns. The estimated cost for this element is
$49,000.
(2) Additions and improvements to the passenger wayfinding signage not included in the
project design. This includes modification to wayfinding signage the length of
Concourse B. While not required in order to complete the project, this would improve
the passenger experience. The estimated cost for this element is $124,000.
(3) During construction, design and pre-existing site conditions exhausted the project
budget contingencies. This request would replenish the project budget and provide for
project close out and contract completion costs and other costs all of which are
required to complete the project. The estimated cost for this element is $232,000.
(4) Install passenger waiting area amenity in the form of a television monitor. This was
not envisioned in the project as first scoped and while not required in order to
COMMISSION AGENDA – Action Item No. __6f__ Page 3 of 5
Meeting Date: March 27, 2018
Template revised September 22, 2016; format updates October 19, 2016.
complete the project, would improve the passenger experience. The estimated cost
for this element is $31,000.
Schedule
While the facility is now in use, with authorization of this request, the project additions and
improvements would be complete by Q2, 2018.
Cost Breakdown
This Request
Total Project
Design
$50,000
$1,036,000
Construction
$386,000
$4,958,000
Total
$436,000
$5,994,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
An alternative that would complete the project with no additional funding was considered but
dropped as additional funding and contingency will be required to close out the contract.
Alternative 1 – Increase the project budget to address the elevator vestibule (scope item 1) and
project contingencies and close out cost (scope item 3) above. Do not complete wayfinding
signage improvements at this time (scope item 2) and instead rely on a future project to make
more permanent improvements and do not install the additional passenger waiting area
amenity (scope item 4).
Cost Implications: This would reduce the project request to $281,000.
Pros:
(1) Reduces the cost of the project by $155,000.
(2) Allows urgent project needs to be completed.
Cons:
(1) Wayfinding signage changes would take the form of stickers applied to the signage
faces and might appear haphazard.
(2) Passengers would be deprived of an amenity that could improve their experience
while waiting for their flights.
This is not the recommended alternative.
Alternative 2 – Proceed with the full scope as outlined in the Scope of Work section above.
Cost Implications: $436,000
Pros:
(1) Wayfinding signage would appear uniform and complete.
(2) Passengers would enjoy the amenity of watching television while waiting for their
flights.
COMMISSION AGENDA – Action Item No. __6f__ Page 4 of 5
Meeting Date: March 27, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Cons:
(1) This is the costliest alternative.
(2) Signage improvements completed now may be superseded by improvements that
would be recommended by the Signage and Wayfinding Master Plan which is in
development.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$4,176,000
$10,000
$4,186,000
Previous changes – net
$5,548,000
$10,000
$5,558,000
Current change
$436,000
$0
$436,000
Revised estimate
$5,984,000
$10,000
$5,994,000
AUTHORIZATION
Previous authorizations
$5,548,000
$10,000
$5,558,000
Current request for authorization
$436,000
$0
$436,000
Total authorizations, including this request
$5,984,000
$10,000
$5,994,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project (CIP #C800761) was included in the 2018-2022 capital budget and plan of finance
with a budget of $5,548,000. A budget transfer of $436,000 will be transferred from the
Aeronautical Allowance CIP (C800753) resulting in no net change to the Airport’s capital
budget. The funding source for this project will include the Airport Development Fund and
2015C revenue bonds.
Financial Analysis and Summary
Project cost for analysis
$5,594,000
Business Unit (BU)
Terminal Building
Effect on business performance (NOI after
depreciation)
NOI after depreciation will increase
IRR/NPV (if relevant)
N/A
CPE Impact
$0.02 in 2018
Future Revenues and Expenses (Total cost of ownership)
The increase in square footage as a result of this project, along with the additional systems will
increase Aviation Maintenance operations and maintenance costs somewhat. Aviation
COMMISSION AGENDA – Action Item No. __6f__ Page 5 of 5
Meeting Date: March 27, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Maintenance will work to absorb the additional costs associated with the HVAC and seating
systems, and janitorial costs within the operating budget.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
November 8, 2016 – The Commission authorized award and execution of a major public
works construction contract and a budget increase.
July 5, 2016 – The Commission authorized construction of the project and an increase to the
budget of $672,000.
October 13, 2015 – The Commission authorized design of the project and use of Port crews
to construct and relocate ramp and service space.
May 26, 2015 – The Commission was briefed on the Aviation Division Business Plan which
included a review of remote hardstand operational needs.
April 28, 2015 – The Commission was briefed on the Sustainable Airport Master Plan (SAMP)
which included a review of the need for remote hardstand operations.
