Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
8a
ACTION ITEM
Date of Meeting
July 10, 2018
DATE: July 2, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Arlyn Purcell, Director Aviation Environment and Sustainability
Stan Shepherd, Manager Airport Noise Programs
Wayne Grotheer, Director Aviation Project Management
SUBJECT: Noise Remediation for Condominium Complexes (CIP C200095)
Amount of this request:
$5,107,000
Total estimated project cost:
$20,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to authorize project funding and
to proceed with executing a contract to hire one firm experienced in airport sound insulation
projects to provide consulting services for noise remediation for condominium complexes near
Seattle-Tacoma International Airport.
EXECUTIVE SUMMARY
As part of the Port’s long-term commitment to communities surrounding the airport, it is
necessary to offer sound insulation for eligible condominium complexes within the current
Federal Aviation Administration (FAA) Airport Noise Compatibility (Part 150) noise remedy
boundary. Using a consultant project management contract to manage the work and separate,
later to be procured, Major Works Contracts for construction services for each complex, this
project will provide sound insulation renovations for three eligible condominium complexes
located within the boundary. These renovations will include new windows, doors, storm doors,
and ventilation for each unit in order to meet the FAA standard of a 45 decibel (dB) interior
noise level. Approximately 80 percent of eligible costs will be funded by FAA Airport
Improvement Program (AIP) grants. Significant uncertainty remains regarding the scope and
cost of this project. The consultant firm hired will provide project design, principal construction
management, quality control, project intake, homeowner outreach, project documentation,
acoustical testing, and FAA AIP grant funding documentation. The amount for this request is an
estimated value of $5,107,000. We will return to the Commission to request funding for three
major works contracts for the construction phase of this project at a later date.
COMMISSION AGENDA – Action Item No. __8a__ Page 2 of 5
Meeting Date: July 10, 2018
Template revised September 22, 2016; format updates October 19, 2016.
JUSTIFICATION
Resolution No. 3683 was adopted by the Commission on October 22, 2013. This resolution
included all recommendations from the Part 150 Study including sound insulation for
condominium complexes. The goal of this program is to meet the requirements of Resolution
No. 3683 to conduct an ongoing noise remedy program.
DETAILS
The Port will provide funding, staff, consultant and contractor oversight, and administration of
the program to provide design and Project/Construction Management for the sound insulation
for condominiums which will consist of new sound rated windows, doors and ventilation to
eligible condominiums within the Noise Remedy Program Boundary. The Airport Noise
Program’s office estimates that there are three complexes (240 units) eligible to participate.
The firm procured will provide project management and will have experience in FAA Noise
Remediation work. Final oversight will be provided by the Port. The pre-construction design
and testing of potential complexes will define the project and provide cost estimates prior to
major construction contracting.
In order for a condominium complex to be eligible, it must be located within the FAA approved
Noise Remedy Boundary and has to have been built prior to the establishment of local
jurisdictional building codes that were enacted to either meet or exceed the FAA standards for
noise reduction. These dates include December 3, 1986, for the City of Des Moines and
September 6, 1987, for all other areas of King County. In 2012 the FAA implemented a
requirement for all FAA-funded sound insulation projects for acoustical qualification based on a
pre- and post- noise audit. Each building must be tested to ensure the interior noise level is at
least 45 A-weighted decibels (dB) with a minimum reduction of 5 dB that can be achieved
through installing sound insulation. Some buildings may not qualify under this new
requirement.
The consultant hired under this contract will help define the requirements both with FAA
eligibility and homeowner participation including agreements with the Homeowner
Associations. In return for sound insulation, all homeowners are required to provide the Port
with an Avigation Easement which will be recorded on the parcel permanently with King
County. An Avigation Easement provides the Port with protections for free and unobstructed
passage of aircraft over the parcel and becomes the Port’s asset.
Since the project will be partially funded with FAA AIP grants, the Port will be following the
United States Department of Transportation’s Disadvantaged Business Enterprise (DBE)
program requirements. Certified DBE goals will be administered in accordance to CFR 49 Part
26.
COMMISSION AGENDA – Action Item No. __8a__ Page 3 of 5
Meeting Date: July 10, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Scope of Work
The hired firm will provide design, principal construction management, quality control, project
intake, homeowner outreach, project documentation, acoustical testing, and FAA AIP grant
funding documentation.
Design work will include sound insulation renovations for three eligible condominium
complexes. Design work includes but is not limited to replacement or installation of:
(1) Solid Core Doors
(2) Sound Transmission Class (STC) 44 rated Windows
(3) Storm Doors
(4) Positive Air Ventilation or Air Conditioning
(5) Other associated work as determined to be necessary by the architect to reduce noise
or to meet code
(6) Regulated materials abatement as necessary to facilitate these installations
Schedule
Activity
Design start
Construction start
Construction complete
Cost Breakdown
This Request
Total Project
Design / Project Management
$5,107,000
$5,107,000
Construction
$14,893,000
Total
$5,107,000
$20,000,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not implement the program
Pros:
(1) No Port expenditures
Cons:
(1) Not implementing the noise remediation project could reduce the Port’s credibility in
the community and would not honor our commitment to the Part 150 Study and
Commission Resolution 3683
(2) Could impact the Port’s ability to leverage available AIP funds
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. __8a__ Page 4 of 5
Meeting Date: July 10, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Alternative 2 – Defer the program until a later date
Cost Implications: Assumed a four-year delayed start with 5 percent per year cost increase,
total project would cost an extra $4,300,000 for a total of $24,300,000
Pros:
(1) No Port expenditures until 2023
Cons:
(1) Would be approximately $6,000,000 more expensive in the long term
(2) Delaying the noise remediation project could reduce the Port’s credibility in the
community as we would not honor our commitments in a timely manner
This is not the recommended alternative.
Alternative 3 – Begin noise remediation of condominium complexes as described above
Cost Implications: $20,000,000
Pros:
(1) Meets commitment to noise remediation in the community in Commission Resolution
3683
(2) Provides a direct community benefit to reduce noise impacts from aircraft operations
at the airport
(3) The use of multiple Major Works Contracts allows more opportunities for certified
DBE contractor and supplier participation
(4) Leverages available AIP funding and FAA financial contribution to the project.
Cons:
(1) Would add additional contracting with the use of a project management firm
(2) The Port would be one step removed from the day-to-day implementation of the
project
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$24,000,000
$1,000,000
$25,000,000
Budget decrease
($4,000,000)
($4,000,000)
Revised estimate
$20,000,000
$1,000,000
$21,000,000
AUTHORIZATION
Previous authorizations
$0
$0
$0
Current request for authorization
$5,107,000
$0
$5,107,000
COMMISSION AGENDA – Action Item No. __8a__ Page 5 of 5
Meeting Date: July 10, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Total authorizations, including this request
$5,107,000
$0
$5,107,000
Remaining amount to be authorized
$14,893,000
$1,000,000
$15,893,000
Annual Budget Status and Source of Funds
The Noise Remediation for Condominium Complexes (CIP C200095) was included in the 2018-
2022 capital budget and plan of finance as a business plan prospective project with a total
capital budget of $24,681,000. The total cost decrease of $4,000,000 was transferred to the
Aeronautical Allowance (CIP #C800753), resulting in no net change to the capital budget. The
Port will seek to maximize the amount of AIP grants from the FAA. The Port anticipates that
80% of the grant eligible costs will be funded with grants. Additional funding sources will
include the Airport Development Fund and future revenue bonds. The project cost estimate
remains a rough estimate due to the uncertainties relating to the scope and cost.
Financial Analysis and Summary
Project cost for analysis
$21,000,000
Business Unit (BU)
Airfield Movement Area
Effect on business performance
(NOI after depreciation)
NOI after depreciation will increase
IRR/NPV (if relevant)
N/A
CPE Impact
$0.05 in 2020
Future Revenues and Expenses (Total cost of ownership)
None
ADDITIONAL BACKGROUND
None
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
October 22, 2013 – Second Reading and Final Passage of Resolution No. 3683 concluding
the Federal Aviation Regulation (FAR) Part 150 Noise and Land Use Compatibility Study
Update for Seattle-Tacoma International Airport.
October 8, 2013 – First Reading of Resolution No. 3683 concluding the Federal Aviation
Regulation (FAR) Part 150 Noise and Land Use Study Update for Seattle-Tacoma
International Airport.