Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
6f
ACTION ITEM
Date of Meeting
January 22, 2019
DATE: January 14, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Michael Ehl, Director, Aviation Operations
Wayne Grotheer, Director, Aviation Project Management Group
SUBJECT: Parking Garage Elevator Modernization (CIP# C800789)
Amount of this request:
$4,251,500
Total estimated project cost:
$23,276,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) prepare design and
construction bid documents for Phase 2 of the Parking Garage Elevator Modernization project
at Seattle-Tacoma International Airport; and (2) use Port of Seattle crews and small works
contracts for preliminary work if required. The amount of this request is $4,251,500. The total
estimated project cost is $23,276,000.
EXECUTIVE SUMMARY
The Seattle-Tacoma International Airport parking garage elevators provide vertical circulation
services for millions of airport parking and ground transportation customers every month.
Continued and reliable operations of these systems are vitally important to the traveling public
as well as Airport operations. Using energy efficient drives and equipment, this project will
reduce energy usage in the Airport parking garage by an estimated 56,000 to 211,000 kilowatt
hours (kWh) per year.
The Airport has developed a renewal and replacement program to ensure thoughtful
modernization of all 27 elevators, which vary by age and condition. As a result, the Parking
Garage Elevator Modernization project is comprised of two major phases. The first phase,
which was approved under a prior authorization, weatherizes the 8
th
floor parking garage
sections PGB and PGC, and eliminates slip/trip hazards in the Section PGB, PGC, PGD, and PGE
elevator lobbies on all eight floors.
The second phase of the project, which is seeking authorization under this action, will renovate
the interior architectural finishes of all elevator cabs and modernize the mechanical and
electrical systems as necessary to ensure continued reliable vertical circulation in the Airport
COMMISSION AGENDA – Action Item No. __6f__ Page 2 of 6
Meeting Date: January 22, 2019
Template revised September 22, 2016; format updates October 19, 2016.
parking garage. The total estimated cost of this project is $23,276,000 and it is included in the
2019 – 2023 capital budget.
JUSTIFICATION
This project provides for continued reliable vertical circulation services within the airport
parking garage for the next ten plus years while reducing maintenance costs and decreasing
energy consumption. Additionally, this project will contribute to the Port’s Long Range Plan
(LRP, HPO Strategy 1, Objective 1a) to improve customer service.
The project replaces worn end-of-life components with new energy efficient systems and
extends their useful life. The modernized elevators will use energy efficient regenerative drives
that use less energy and produce less waste heat. The total energy savings is estimated at
56,000 to 211,000 kilowatt hours (kWh) per year. This energy reduction represents
approximately 0.1 percent of the total airport electrical energy consumption. This project will
contribute to the Port’s goal to be the greenest and most energy efficient port in North
America.
DETAILS
Scope of Work
The elevators located in the parking garage are organized physically into five elevator sections
from North to South: PGA, PGB, PGC, PGD, and PGE. Elevator section PGA contains seven
elevators, while the remaining four elevator sections PGB, PGC, PGD, and PGE contain five
elevators each for a total of 27 elevators. Many of these elevators and associated facilities are
over 40 years old and are at the end of their service lives.
This second phase of the Parking Garage Elevator Modernization project is comprised of the
following project scope:
Elevator section PGA was refreshed approximately nine years ago and is still in good mechanical
and electrical condition. It will be updated with new architectural finishes only.
Elevator sections PGB and PGC are approximately 48 years old, have reached the end of their
useful lives, and will receive comprehensive modernization of all components.
Elevator sections PGD and PGE were installed approximately 19 years ago and are in generally
good mechanical condition. However, the electrical drive systems on all but one of these
elevators are at the end of their service life and will be renewed with more energy efficient
systems.
Diversity in Contracting
The project manager will work with the Diversity in Contracting Department to determine
participation opportunities and set goals for women and minority business enterprises (WMBE)
COMMISSION AGENDA – Action Item No. __6f__ Page 3 of 6
Meeting Date: January 22, 2019
Template revised September 22, 2016; format updates October 19, 2016.
attainment. These affirmative efforts are in accordance with Resolution No. 3737.
Execution of a project labor agreement for this project was approved previously by the
Commission.
Schedule – Phase 1
Design start
Commission construction authorization
Construction start
In-use date (Core Structures)
In-use date (Lobbies)
Schedule – Phase 2
Design start
Commission construction authorization
Construction start
In-use date (First Elevator Bank)
In-use date (Final Elevator Bank)
Cost Breakdown – Phase 1
This Request
Total Work Project
Design
$595,000
Construction
$2,004,000
Sub-Total
$2,599,000
Cost Breakdown – Phase 2
This Request
Total Work Project
Design
$4,366,000
Construction
$16,311,000
Sub-Total
$20,677,000
Combined (Phases 1 & 2) Cost Breakdown
This Request
Total Project
Design
$4,961,000
Construction
$18,315,000
Total
$23,276,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not proceed to prepare design and construction bid documents for this
project.
Cost Implications: An estimated $81,000 in costs to date would need to be expensed if this
project is canceled.
COMMISSION AGENDA – Action Item No. __6f__ Page 4 of 6
Meeting Date: January 22, 2019
Template revised September 22, 2016; format updates October 19, 2016.
Pros:
(1) Does not require capital investment.
(2) Does not involve any shutdown of current facilities
Cons:
(1) This option would result in the facility continuing to deteriorate until potential failures
of greater impact and severity occur.
(2) Since the parking garage is critical infrastructure and a significant revenue source, a
“planned” outage is far more desirable than an “unplanned” outage.
(3) The parking garage facility would not experience the energy savings that the
replacement systems in the two banks would deliver.
This is not the recommended alternative.
Alternative 2 – Proceed with the recommended scope but schedule the work to remove only
one elevator at a time per bank from service.
Cost Implications: $23,866,000
Pros:
(1) This option will result in the planned renewal of critical Airport infrastructure and
minimize the risk of an “unplanned” outage.
(2) Minimizes disruption to customers in the parking garage.
(3) The parking garage facility will experience the energy savings that the replacement
systems in the two banks will deliver.
Cons:
(1) Would result in a total construction schedule of approximately seven years.
(2) The long construction schedule increases the risk of elevator failure prior to
replacement.
This is not the recommended alternative.
Alternative 3 – Proceed with the recommended scope and allow entire elevator cores to be
removed from service to improve the project schedule.
Cost Implications: $23,276,000
Pros:
(1) This option will result in the planned renewal of critical Airport infrastructure and
minimize the risk of an “unplanned” outage.
(2) The parking garage facility will experience the energy savings that the replacement
systems in the two banks will deliver.
COMMISSION AGENDA – Action Item No. __6f__ Page 5 of 6
Meeting Date: January 22, 2019
Template revised September 22, 2016; format updates October 19, 2016.
(3) Minimizes the total construction schedule to approximately two years.
Cons:
(1) Will result in significant impacts for parking garage customers during construction.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$23,276,000
$0
$23,276,000
Previous changes – net
0
0
0
Revised estimate
$23,276,000
0
$23,276,000
AUTHORIZATION
Previous authorizations
$709,500
0
$709,500
Current request for authorization
$4,251,500
0
$4,251,500
Total authorizations, including this request
$4,961,000
0
$4,961,000
Remaining amount to be authorized
$18,315,000
$0
$18,315,000
Annual Budget Status and Source of Funds
The Parking Garage Elevator Modernization project (#C800789) is included in the 2019-2023
capital budget and plan of finance with a budget of $23,276,000 for all phases. The funding
source would be the Airport Development Fund and future revenue bonds.
This project is categorized as a non-aeronautical cost center, which does not impact the airline
rate base.
Financial Analysis and Summary
Project cost for analysis
$23,276,000
Business Unit (BU)
Parking
Effect on business performance
(NOI after depreciation)
NOI after depreciation will decrease
IRR/NPV (if relevant)
N/A
CPE Impact
N/A
Future Revenues and Expenses (Total cost of ownership)
Renovation is expected to reduce future repair costs and increase the operational availability of
the system. The estimated useful life will be extended for all 27 elevators located in the parking
garage. The new elevators in Sections PGB and PGC (10 elevators total) will have a useful life of
COMMISSION AGENDA – Action Item No. __6f__ Page 6 of 6
Meeting Date: January 22, 2019
Template revised September 22, 2016; format updates October 19, 2016.
approximately 20 years, while the remaining 17 elevators located in Sections PGA, PGD and PGE
will have a useful life of 10 years.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
May 8, 2018 – The Commission authorized design of WP U00434 (Phase 1) work.