Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
6d
ACTION ITEM
Date of Meeting
November 13, 2018
DATE: October 5, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Ralph Graves, Senior Director, Capital Development
Janice Zahn, Assistant Engineering Director, Construction Services
SUBJECT: Stage 3 Mechanical Energy Conservation Project (CIP #C800658)
Amount of this request:
NONE
Total estimated project cost:
$7,121,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute Change Order 1 to
Contract MC-0319157, at Seattle-Tacoma International Airport, to extend the contract duration
by 116 calendar days to correct an administrative error in the calculation of the contract
duration. No additional funds are being requested, nor does the requested time extension
represent a delay to the project.
EXECUTIVE SUMMARY
This project is the third phase of the Airport’s mechanical energy conservation program
reducing energy usage throughout SeaTac Airport. On July 25, 2017, the Commission
authorized the design and construction of the project through the Washington State
Department of Enterprise Services (DES) Energy Services Contractor (ESCO) program. An
administrative error by DES caused the contract duration to be issued incorrectly.
The Stage 3 project directly supports the Century Agenda Goals to meet future energy needs
through conservation and to reduce greenhouse gas emissions. It also advances the accelerated
goals in the Energy and Sustainability Policy (E&S Policy) recommendations by adding electrical
sub-metering to 35 motors that serve large mechanical system loads.
DETAILS
Background
After Commission approval of the project in July 2017 DES amended an existing contract with
the ESCO on January 20, 2018, to provide design, construction and other services on the Stage 3
Mechanical Upgrades project. In that amended contract, DES stated a Time of Completion of
295 calendar days after Notice to Proceed was issued by DES to the ESCO. This was a calculation
COMMISSION AGENDA – Action Item No. 6d Page 2 of 3
Meeting Date: November 13, 2018
Template revised September 22, 2016; format updates October 19, 2016.
error by DES in which working days rather than calendar days were counted. Upon recognizing
this error, the ESCO requested that DES make an adjustment of 116 days to correct this
administrative error. On August 16, 2018, DES notified the Port and requested that an
administrative change in the contract duration be approved. This Commission action corrects
the contract duration by adding 116 days for a total duration of 411 consecutive calendar days
from NTP which was issued by DES on March 5, 2018. The DES contract end date then becomes
April 20, 2019.
Scope of Work
This project will improve the efficiency of the Airport’s mechanical systems, replace equipment
that has exceeded its useful life and reduce energy usage. Energy savings will be achieved for
both electricity and natural gas, with a resulting reduction in carbon emissions.
The project work includes:
(1) Optimize chilled water production and distribution network
(2) Remove non-performing heat exchanger in the chilled water system
(3) Replace direct expansion refrigeration units with chilled water units and install duct
work in the main data center to improve cooling at the server racks
(4) Optimize chilled water pumping
(5) Monitor indoor air quality in the airport Main Terminal to improve efficiency and
reduce energy consumption
(6) Install air curtains at public doors on baggage and ticketing levels to reduce the
amount of conditioned air leaving the building
(7) Replace older constant volume terminal boxes with variable volume boxes
(8) Insulate condensate tanks
(9) Add electrical submetering.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not award the additional days.
Cost Implications:
Pros:
(1) None.
Cons:
(1) The contractor would be unable to complete the work within the contract time and
would therefore be unduly subjected to liquated damages due to this administrative
error. The Port and DES may be subject to litigation or be unable to close out the
contract with the ESCO.
COMMISSION AGENDA – Action Item No. 6d Page 3 of 3
Meeting Date: November 13, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Alternative 2 – Award the 116 days requested.
Cost Implications: None.
Pros:
(1) ESCO will be allowed to complete the contracted work within the corrected number of
contracted days.
Cons:
(1) None.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
There is no additional funding being requested in this memo.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
July 25, 2017 – The Commission authorized executing the Interagency Agreement
July 11, 2017 – The Commission was briefed on Stage 3 Mechanical Energy Conservation
June 24, 2014 – The Commission authorized Stage 3 Mechanical Energy Conservation Audit
March 11, 2014 – The Commission was briefed on Stage 3 Mechanical Energy Conservation
