Q2 Capital Projects Update

Item No.: 9a_Supp
Meeting Date: August 13, 2019

Shilshole
Bay

Where are Port projects?
Sea-Tac Projects
• 34 Projects
• $ 2.6 Billion

Maritime Projects
• 3 Projects
• $ 18.8 Million

Elliott Bay

Downtown
Seattle

Economic Dev. Projects
• 1 Project
• $0.51K
As of Q2 2019

Stormwater or Joint Venture
• 2 Projects (SWU & JV)
• $11.7 Million
Lake Washington

N

Lake Union

Technology Projects
• 8 Projects
• $ 16.9 Million

1

Capital Project Employment Benefits the Community
Job Equivalents

Sales Tax on Construction
$50,000,000

700

$45,000,000

600

$40,000,000
$35,000,000

500

$30,000,000

400

$25,000,000

300

$20,000,000
$15,000,000

200

$10,000,000
100

$5,000,000

0

$0
Q1 2018

Q1 2019

2018

Q1 2019

2

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

SUMMER TRAVEL PEAK
More people traveling in Puget Sound than ever before
• Over 4.9 million passengers travelled through Sea-Tac in
June 2019, an increase of 3.5% versus 2018
• 2019 cruise passenger volume forecast to rise 8.4 percent
• Tourism is Washington state's fourth largest industry

3

Trends We Watch

External Trends
• Regulatory and permit
requirements
• Rising cost of construction
• Tight construction market
• Materials cost
• Tariffs

Internal Trends
• Acceptable impact on
operations and customer
service
• Project volume
• Staff capacity
• Aggressiveness of
schedules
• Changing scope
• Interdepartmental
coordination
• Existing building conditions
4

Q2 Maritime/Economic Development Completed Projects and New Schedule Variances

Completed Projects
• None

New Variances
• None

5

6

Terminal 46 Cruise Terminal

7

T 46 Cruise Terminal

Terminal 5

Program Components
- Water/Landside/Offsite Improvements
- New Cruise Terminal Building
- Passenger Boarding Systems
Accomplishments:
- Investment Partner RFP released
- Design work started in Q2
Upcoming Milestones:
- Investment Partner RFP responses
- Review Investment Partner responses
- Select Investment Partner
Estimated Budget/Schedule:
- 200 Million - 100 M Port, 100 M Partner
- Finalize schedule when Investment Partner is
selected
Risks:
- Timing of Partner Agreement
- Aggressive schedule to meet business demand

Program Components
- Berth Modernization
- Upland Improvements

Accomplishments:
- Open House
- Construction Kick-off

Upcoming Milestones:
- Rail Quiet Zone design
- Marine Building design
- Stormwater Treatment design

Estimated Budget/Schedule:
- $340 Million
- Phase 1 - January 2021
- Phase 2 - December 2022

Risks:
- Scope change requests

8

Q3 Maritime Focus Projects
Shilshole Bay
Marina
Customer
Service Facilities

9

Aviation Capital Program Update
INTERNATIONAL ARRIVALS FACILITY

NORTH SATELLITE MODERNIZATION

BAGGAGE OPTIMIZATION

10

International Arrivals Facility

Raising of the "V" Piers

End of month

Last week

12

IAF Details

Project Overview

(augmenting June 25th Quarterly Commission/Public Briefing)

Program Components:
- International Arrival Facility
- Pedestrian Walkway SSAT to IAF
- Sterile Corridor International Arrivals in Concourse A
Accomplishments:
- Terrazzo Mock installed and polished
- POD C primary steel erected
- Pedestrian Walkway center span pre-assembly 50%
- IAF BHS conveyor installation underway
- Customs & Border Protection requirements determined

Budget Status

Schedule Status

Budget
(millions)

$1,200
$1,000

$963

$800
$558

$600

Upcoming Milestones:
- IAF Enclosure Complete (Q3)
- Baggage Handling FAT & begin IAF Carousels (Q3)
- Pedestrian Walkway Move/Lift (Q3/Q4)
- Permanent Power Available (Q3)

$400
$200
$0
Budget

Actuals

Risks:
- Trade worker availability
- Structural Steel shop fabrication
- Customs & Border Protection staffing
13

Program Schedule
Finish

ID

Task Name

6/19/2018

6/5/2020

1

Baggage Handling System

2/9/2018

6/5/2020

2

IAF Building

8/13/2018

3/22/2019

Slab on Deck/Grade

8/30/2018

9/20/2019

Envelope

4/25/2019

4/6/2020

Finishes

11/12/2019 3/26/2020

Start Up & Commissioning
3

J

A

S

O

N

D

J

F

M

A

M

J

J

2020
A

S

O

N

D

J

F

M

A

M

J

J

2021
A

S

O

N

D

J

F

M

Critical Path

BASELINE

Sterile Corridor

PORT FORECAST

10/2/2017

3/12/2020

10/2/2017

2/27/2020

Pod A

6/25/2018

2/27/2020

Pod B

2/5/2019

3/12/2020

Pod C

2/9/2018

7/6/2020

5/22/2018

3/10/2020

Conc A Connection

7/30/2018

5/7/2020

SSAT Connection

9/28/2018

6/2/2020

Center Span/PW Integration

6/19/2018

5/30/2020

5

IAF ACTIVATION

12/30/2019 10/30/2020

6

Sterile Corridor - Pod D

4

Today 2019

2018

Start

Critical Path

Pedestrian Walkway

Transport

PORT FORECAST
IAF OPENING
Closeout

14

North Satellite

Alaska Lounge opened 7/11/19

15

Project Overview

NSAT Details
Program Components:

Budget Status

- Ph1 (Expansion & Alaska Lounge)
- Ph2 (NSAT Wedge, South Building, Central Core)
- Concourse C STS Station Renovation

Budget

Accomplishments:
- Opened Gate N13, N14, and N20; Bagwell and
tug drives; STS level in expansion, and eastside
men's restroom
- New Alaska Lounge construction completed

Upcoming Milestones:
- Completely close existing North Satellite and
continue with demolition
- Continue construction of Concourse C

Schedule Status

(millions)
$800

$672

$600

$347

$400
$200
$0
Budget

Actuals

Risks:
- Shortage of critical trade workers
- Balancing turnovers between gate needs and
customer service

16

Program Schedule
Start

Finish

ID

1/31/2019 11/20/2019

2019

Task Name

J

1

NSAT PHASE 1

2

CONCOURSE C STS STATION

3

PHASE 2 - BASE BLDG

F
A

NSAT Wedge
1/27/2019 12/17/2019

Lateral & Roof Structure

12/18/2019 5/26/2020

Interior Roughin / Finishes

M

A

M

J

J

A

Today
S
O

2020
N

D

J

F

M

A

M

J

J

2021
A

S

O

N

D

J

F

M

A

M

J

J

O

N

D

BASELINE

Critical Path

FORECAST

South Building

6/18/2020

NSAT Central Core
2/4/2019

7/23/2019

NSA/NSB Demo

7/1/2019

8/22/2019

ST3.4 Install

2/20/2020

8/6/2020

Demo Roof/Topping Slab

8/10/2020

9/15/2020

Infill Elevator Core

9/16/2020

10/1/2020

Buildout Level 3

10/5/2020

3/31/2021

Escalator NS5/NS6

4/1/2021

6/29/2021

Concourse TI West Buildout

7/1/2021

7/27/2021

Commissioning
4

7/1/2021

S

B

NSAT South Building
7/1/2019

A

NSAT PHASE 2 ACTIVATION

10/27/2021

Critical Path

NSAT OPENING

Closeout

Critical Path

17

NSAT Phase 1 Complete

18

Baggage Optimization

19

Project Overview

Baggage Details
Program Components

Budget Status

- Replace six individual baggage-screening systems with a
centralized system that optimizes the operation and
functionality

Budget

Accomplishments
- Replacement of damaged Explosive Detection System
(EDS) machines complete
- Baggage Handling System Control Room complete
- Central Terminal bump out in final punchlist
- Phase 2 Advertised

Upcoming Milestones
- Checked Baggage Resolution Area (CBRA) room complete
- TSA Break Room complete
- Conveyor System Controller (CSC) Testing complete

Schedule Status

(millions)
$600
$445
$400

$200

$86

$0
Budget

Actuals

Risks
- Phase 1 Construction behind schedule affects Phase 2
schedule
- Baggage Handling/Steel Market Conditions for Phase 2
Bid
- Delay to International Arrivals Facility (IAF) schedule
would impact Phase 2 delivery

20

Program Schedule

21

Q2 Budget/Schedule Variance: EGSE
Electrical charging system allows airlines to replace existing fossil fuel
Ground Service Equipment (GSE) with new electrical EGSE
Project Delay: 2013 - held for Airline realignment & reduced airline interest.
2016 - phase 2A on hold due to IAF gate area construction.
Originally single project. Now 7 projects to install when space is available.
To expedite later work, partial progress is being made including:
• Completed installation of electrical panelboard.
• Completed installation of 30 Charge Ports.
• 42 additional charge Ports will be installed in Q2 2020.
Project Benefit: Future estimated 200+ electric GSE will reduce 4,000-5,000 metric tons of carbon emissions.
Delay Escalation: Current estimated cost increase is $6.5 million bringing total cost from $30.7 to $37.2 mil.
Design reaches 90% in Q1 2020, and a better and predictable estimate will be available.

22

Q2 Aviation Completed Projects

CUSTOMER SERVICE
• Holdroom seating (Conc B & C)
• Concourse B Ramp Level Hold Room
• Concourse C Ramp Space Renovation

ASSET PRESERVATION
•
•
•
•

Chiller panel control
Passenger loading bridge (Gate C15)
EGSE Chargers at Gate B6
Video System Improvements
23

Q3 Aviation Focus Projects

West Side Fire Station

Airport Service Tunnel

24

Q2 ICT Completed Projects

RENEWAL
• PeopleSoft Financials Upgrade

RENEWAL
• Airport Subway Display System

25

Q2 ICT Schedule/Budget Variances
1 Major Variances

2 Minor Variances

1. Vessel Moorage System
Reason: Vendor contract terminated due
to security concerns
Impact: Estimating a one year delay, Q4
2020. Currently investigating alternative
products

1. Automated Checkpoint Wait Time
Reason: Checkpoint 3 sensor installation delayed to
accommodate other projects
Impact: Four month delay - Estimated Completion Q4 2019
2. RCF Fleet Tracking
Reason: Signage equipment delivery delayed
Impact: Three month delay - Estimated Completion Q3 2019

26

Questions?

APPENDIX
• Looking Ahead: Q3 Anticipated Commission Actions
• Q4 Potential Commission Items
• Q1 Variances

28

Looking Ahead: Anticipated Commission Actions
Q3 2019
AVPMG Updated:
• Remote deicing location
• Checkpoint smart LED lighting
• Safedock Upgrade and Expansion
Maritime/Economic Development
• None

Action Items Subject to Change
29

Looking Ahead: Anticipated Commission Actions
Q4 2019
Q4 2019
AVPMG Updated:
• SEATING REPLACEMENT - CONCOURSES A, D, SSAT
• CENTRAL TERMINAL SOLID WASTE IMPROVE,ENTS
• GARAGE ELEVATOR SHAFTS AND VESTIBULES
• 2020 AIRFIELD PAVEMENT REPLACEMENT PROJECT (CONST.)
• 2021 AIRFIELD PAVEMENT REPLACEMENT PROJECT (DESIGN)
• EMERGENCY GENERATOR CONTROL RENEWAL / REPLACEMENT
• MAIN TERMINAL SPACE CONVERSIONS - PH 2
• C800978 - VFD REPLACEMENT 2018
• LOST AND FOUND
• CONC B - LOW VOLTAGE SYSTEM UPGRADE
• CONC C - LOW VOLTAGE SYSTEM UPGRADE
• FIRE PUMP REPLACEMENT
• BUILDING CONTROLS UPGRADE
• CARGO 161D BUILDING MODS (420E/BT PROPERTIES)
• AIRFIELD COMPACTOR CAPACITY
• PARKING GARAGE - LOW VOLTAGE SYSTEM UPGRADE
• COMMUNICATIONS INFRASTRUCTURE EXPANSION
• MAIN TERMINAL FIRE SPRINKLERS & SMOKE CONTROL

ICT Updated:
• Exchange Migration to Office 365
• Phone System Upgrade
• Network Redundancy
Maritime/Economic Development
• Design funding P66 Shore Power
• Design funding World Trade Center HVAC
• Design funding T91 NW Fender
• Design funding Harbor Mooring Dolphins
• Design funding T91 Berths 6 & 8
• Design funding P69 Under dock Utility Replacement
• Design funding Lenora St. and Bell St. elevators

Action Items Subject to Change

30

Previously reported variances
•

Q1 Previously Reported Variances: 

•
•

ADR Kiosk Location: Variance amount TBD 
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 $3M;
% of total budget is 30% 
Wi-Fi Enhancements: Variance of $957K; % of total budget is 9%

•
•

•

31