Item No.: 9a_Supp Meeting Date: May 14, 2019 CAPITAL PROJECT QUARTERLY UPDATE Q1 2019 Service and Stewardship PRINCIPLES FOR CAPITAL PROJECT DEVELOPMENT Customer Service • Meet expanded need for existing airport, seaport and real estate business lines Community and Environmental Health • Enhance environment or sustainability Economic Opportunity • Support business opportunities for the port and related industries Financial Stewardship and Asset Preservation • Renew or replace outmoded or deteriorated facilities TRENDS WE'RE ADDRESSING WITH CAPITAL PROJECTS More people than ever travel by air • 4.1 billion air passengers in 2017 • Airfares, in real terms, averaged less than half what they were in 1995. • More than 20,000 cities are connected around the world. - From IATA 2018 report 2 N Where are our projects? Shilshole Bay Sea-Tac Projects • 59 Projects • $ 3 Billion Maritime Projects • 9 Projects • $ 159.7 Million Elliott Bay Downtown Seattle Economic Dev. Projects • 4 Projects • $ 50.9 Million As of Q1 2019 Stormwater or Joint Venture • 4 Projects (Joint Venture) • $72 Million Lake Washington Lake Union Technology Projects • 12 Projects • $ 36.7 Million 3 Capital Project Employment Benefits the Community Job Equivalents • In 2018 = 700 • In Q1 2019 = 600 Sales Tax on Construction • In 2018 = $49 million • In Q1 2019 = $12 million 4 Projects: Improving the Customer Experience INTERNATIONAL ARRIVALS FACILITY Before After 5 Projects: Improving the Customer Experience NORTH SATELLITE MODERNIZATION Before After 6 Projects: Improving the Customer Experience CENTRAL TERMINAL RENOVATION Before After 7 Major Projects Status INTERNATIONAL ARRIVALS FACILITY NORTH SATELLITE MODERNIZATION BAGGAGE OPTIMIZATION TERMINAL 46 CRUISE TERMINAL 8 International Arrivals Facility 9 Project Overview IAF Details Accomplishments: - Flyover bridge steel erected - POD B gates A9 & A10 operational - Pedestrian Walkway center span steel beginning erection Upcoming Milestones: - IAF Enclosure Complete (Q2) - Pedestrian Walkway Move/Lift (Q3) - Permanent Power Available (Q3) Risks: - Customs & Border Patrol requirements pending - Trade worker availability Budget Status Schedule Status Budget (millions) $1,500 $963 $1,000 $466 $500 $0 Budget Actuals Construction Schedule Planned Completion Q2 2020 Construction Start Q1 2016 2016 2017 2018 2019 2020 10 North Satellite 11 Project Overview NSAT Details Accomplishments: - Phase 1A successfully opened on schedule (5 gates) - Opened west side restrooms in expansion ahead of schedule Upcoming Milestones: - Phase 1B opening (remaining portion of expansion, 4 gates) - Begin demolition of existing building Risks: - Shortage of critical trade workers - Balancing turnovers between gate needs & customer service Budget Status Schedule Status Budget (millions) $800 $672 $600 $312 $400 $200 $0 Budget Actuals Construction Schedule Planned Completion Q3 2021 Construction Start Q3 2012 12 13 14 15 16 17 18 19 20 21 12 Baggage Optimization 13 Project Overview Baggage Details Accomplishments - Structural steel on Central Terminal bump out completed - Conveyor Factory Acceptance Retest conducted and successful - Phase 2 permit submitted to building department Upcoming Milestones - Central Terminal bump out complete - CBRA room complete - Commission Authorization for Phase 2 Construction (4/23/19) - Phase 2 Advertisement (3rd Quarter) Budget Status Schedule Status Budget (millions) 600 $445 400 200 $76 0 Budget Actuals Risks - Phase 1 Construction behind schedule affects Phase 2 schedule - Baggage Handling/Steel Market Conditions for Phase 2 Bid - Replacement of damaged EDS machines critical to overall schedule impact Construction Schedule Planned Completion Q2 2025 Construction Start Q2 2013 13 14 15 16 17 18 19 20 21 22 23 14 24 25 Terminal 46 Cruise Terminal 15 Project Overview Cruise Terminal Details Accomplishments: - Design and Consultant support funds received on 3/26 Upcoming Milestones: - Begin design work in Q2 - Continue process to select an investment partner Risks: - Aggressive schedule Budget Status Schedule Status Budget (in millions) Port Private Partner $100 $100 Actuals * *Minimal Actuals $42,000 Budget Draft Schedule 2019 2020 2021 2022 16 Budget Variances on Projects in Implementation/Construction Phase Budget Status of Projects Under Construction 40 1 35 5 30 25 20 32 15 10 5 0 0 • 8 • ICT • 0 CDD On/Under Previously Reported Variance New Variance ADR Kiosk Expansion Reason: Concourse A Kiosk Location changed Impact: Project team was evaluating impact at end of Q1. No impact to budget has now been determined $ budget: 0 % of total project budget: 0 Previously Reported Variances: New Variance • • • Wi-Fi Enhancement Project: Variance of $74K; % of total budget is <1% Baggage Optimization: Variance of $40-$80M; % of total budget is 9-18% Central Terminal Infrastructure: Variance of $2.5M; % of total budget is 15% Passenger Loading Bridge Phase 2: Variance of $2M; % of total budget is 20% Delta In-flight Services: Variance of $90K; % of total budget is 8% 17 Q1 New Schedule Variances 0 Major Variances 3 Minor Variances 0 1. Mechanical Energy Conservation Reason: Contractor resource availability delayed the start of the project Impact: Delayed Energy Savings. Project team is working with the contractor to recover schedule. 2. Pond Bird Deterrent Improvements Reason: Added scope due to damage sustained during February 2019 Storm Impact: Priority for 2019 are the damaged ponds. Project team is working with the contractor to recover the approximately one month delay. 3. ADR Kiosk Expansion Reason: Concourse A Kiosk Location changed Impact: Identification of a new location has delayed the project approximately one year 18 Q1 New Schedule Variances - ICT 0 Major Variances 2 Minor Variances 0 1. Rental Car Facility Bus Tracking System Reason: Software Deployed; Signage installation delayed due to design changes Impact: Three month delay 2. Supplier Outreach and Procurement System Reason: Information & Communication Technology resource constraints Impact: Four month delay 19 Q1 Completed Projects - Aviation STRUCTURAL RESILIENCY SECURITY • North Satellite Modernization Phase 1A • South Satellite Structural Steel • Terminal Security Enhancement Phase 1 • Automatic Screening Lanes Check Point 2 20 Q1 Completed Projects SUSTAINABILITY • Pier 69 Solar Panel Roof Array RENEWAL • Pier 69 Commission Chambers 21 Q2 Focus Projects West Side Fire Station Central Terminal Infrastructure 22 Trends We Watch External Trends • Tight labor market • Materials cost • Tariffs • Technical and Regulatory Challenges • Weather Internal Trends • Changing scope • Staff capacity • Aggressive schedules • Value engineering • Interdepartmental coordination • Existing building conditions 23 Looking Ahead: Anticipated CD Commission Actions Q2 2019 • • • • • • • • • • • • Accessibility and Safety Enhancements Westside Fire Station Employee Security Screening Phase 2 Employee Services Center Bell Harbor International Conference Center Construction funds East Marginal Way Grade Separation property conveyance/easements to City of Seattle Maritime Innovation Center Design Electrical Utility SCADA Cargo 4 (BT Properties) building 420E Surface Area Management System Crowd Sourced Incident Reporting Mobile Application Customer Relationship Management System Action Items Subject to Change 24 Questions? Looking Ahead: Anticipated CD Commission Actions Q3 2019 • • • • • • • • • • • • • • • • • Q4 2019 (TENTATIVE) Harbor Mooring Dolphins Design P66 Shore power Design T91 Berths 6 & 8 Design Emergency Generator Control CTE Curtain Wall Setback Checkpoint Smart LED Lighting Central Terminal Infrastructure RCF Camera Replacement Concourse C new Power Center Building Controls Upgrade AOB Capacity Upgrades Remote Aircraft Deicing Central Terminal Solid Waste Improvements Garage Elevator Shafts & Vestibules Concourse A, D, SSAT Seating Replacement Phone System Upgrade Airport Common Use System Maintenance Renewal • • • • • • • • • • • • • • • • • • • • • T117 Restoration Main Terminal Space Conversions Cruise Terminal P3 approval and Design Water Hammer Attenuation Parking Garage Boiler Replacement Fire Suppression at Comm Rooms Utility Meter Networking Compactor Capacity Departure Drive Drainage Improvement 2020 Airfield Pavement Replacement Variable Frequency Drive Surface Area Management Air Cargo 4 Maintenance Upgrade EGSE Charging Stations Phase 2 Lost and Found North Employee Parking Lot Parking Garage/Conc B/C Low Voltage Upgrade Fire Pump Replacement Baggage Claim Refresh Airport Wide & RCF LED Lighting POS Office WiFi Upgrade Action Items Subject to Change 26