Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6j
ACTION ITEM
Date of Meeting
October 22, 2019
DATE: October 14, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Laurel Dunphy, Director, Aviation Operations
Wayne Grotheer, Director, Aviation Project Management
SUBJECT: Parking Garage Elevator Modernization (CIP# C800789)
Amount of this request:
$2,155,000
Total estimated project cost:
$23,276,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to advertise and execute a major
works construction contract for the first phase of the Parking Garage Elevator Modernization
project at Seattle-Tacoma International Airport in the amount of $2,155,000 of a total
estimated project cost of $23,276,000.
EXECUTIVE SUMMARY
The 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.
The first phase of this project weatherizes the 8
th
floor Parking Garage Sections B and C elevator
cores, eliminates slip/trip hazards, and improves the customer experience in the Parking Garage
elevator lobbies. The second phase of the project replaces worn end-of-life elevator
components with modern, energy efficient systems in all five elevator cores in the Parking
Garage. The project has seen a Phase 1 cost increase of $150,000. As the second phase
completes design, the project may require additional funds, but it is premature to request
additional funds at this time.
JUSTIFICATION
This project provides for continued reliable vertical circulation services within the airport
Parking Garage for the next ten plus years, while reducing repair costs and decreasing energy
consumption. 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. While this energy reduction represents just
approximately 0.1 percent of the total airport electrical energy consumption, the project will
COMMISSION AGENDA – Action Item No. __6j__ Page 2 of 5
Meeting Date: October 22, 2019
Template revised June 27, 2019 (Diversity in Contracting).
contribute to the Port’s goal to be the greenest and most energy efficient port in North
America. Additionally, this project will contribute to the Port’s Long-Range Plan to improve
customer service.
Diversity in Contracting
Project staff are working with the Diversity in Contracting Department in outreach to women
and minority business enterprises (WMBE) for this opportunity. A WMBE aspirational goal of
14% has been established for this construction contract.
DETAILS
This project will be delivered in two phases. The first phase of this project will weatherize the
8
th
floor Parking Garage Sections B and C elevator cores and eliminate slip/trip hazards and
improve the customer experience in the Parking Garage elevator lobbies. The second phase will
replace worn end-of-life elevator components with modern, energy efficient systems in all five
elevator cores in the Parking Garage.
Scope of Work
The first phase of the project will re-roof, replace leaking doors, repair and seal porous exposed
walls, and install new roof hatches and employee safety apparatus in the Parking Garage
Sections B and C elevator cores. The initial phase of the project will also include flooring safety
and aesthetic improvements, and additional wayfinding graphics, to improve the customer
experience in the Parking Garage elevator lobbies. The Parking Garage elevator lobbies will also
be made compliant with Americans with Disabilities Act requirements.
Schedule
Activity – Phase 1
Construction start
In-use date
Activity – Phase 2
Design start
Commission construction authorization
Construction start
In-use date (First Elevator Bank)
In-use date (Final Elevator Bank)
Cost Breakdown
This Request
Total Project
Design
$0
Construction
$2,155,000
Total
$2,155,000
COMMISSION AGENDA – Action Item No. __6j__ Page 3 of 5
Meeting Date: October 22, 2019
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
The following alternatives and implications only apply to the first phase of the project.
Alternative 1 – Do not complete the improvements
Cost Implications: $398,640 (current project costs that would need to be expensed)
Pros:
(1) Does not require capital investment.
Cons:
(1) The needed replacement elevator systems would need to be abandoned due to water
infiltration into the cores.
(2) 8th floor elevator lobbies would not be fully weatherized and would continue to have
ponding issues.
(3) Lobby enhancements supporting Aviation’s Parking Garage upgrade effort would not
occur and slip/trip hazards would remain.
(4) The Parking Garage facility would continue to deteriorate, an essential non-
aeronautical revenue source.
(5) Employee safety is not enhanced.
This is not the recommended alternative.
Alternative 2 – This option would weatherize and provide employee safety improvements for
the Sections B and C elevator cores.
Cost Implications: $1,744,000
Pros:
(1) Preserves the life of the Parking Garage as a non-aeronautical revenue source.
(2) Weatherizes the Sections B and C elevator cores, allowing elevator replacement to
occur.
(3) Weatherizes the Sections B and C 8th floor elevator lobbies.
(4) Provides employee safety improvements in the Sections B and C cores.
Cons:
(1) Lobby enhancements supporting Aviation’s Parking Garage upgrade effort would not
occur and slip/trip hazards would remain.
(2) Results in capital expenditure.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. __6j__ Page 4 of 5
Meeting Date: October 22, 2019
Template revised June 27, 2019 (Diversity in Contracting).
Alternative 3 – This option would weatherize and provide employee safety improvements for
the Sections B and C elevator cores, and complete lobby enhancements in support of the
Airport’s Parking Garage upgrade effort.
Cost Implications: $2,750,000
Pros:
(1) Preserves the life of the Parking Garage as a non-aeronautical revenue source.
(2) Weatherizes the Section B and C elevator cores, allowing elevator replacement to
occur.
(3) Weatherizes the Section B and C 8th floor elevator lobbies.
(4) Provides employee safety improvements in the Section B and C cores.
(5) Lobby enhancements supporting Aviation’s Parking Garage upgrade effort would
occur and slip/trip hazards would be removed.
Cons:
(1) Results in capital expenditure.
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
AUTHORIZATION
Previous authorizations
$4,961,000
$0
$4,961,000
Current request for authorization
$2,155,000
$0
$2,155,000
Total authorizations, including this request
$7,116,000
$0
$7,116,000
Remaining amount to be authorized
$16,160,000
$0
$16,160,000
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 will decrease
COMMISSION AGENDA – Action Item No. __6j__ Page 5 of 5
Meeting Date: October 22, 2019
Template revised June 27, 2019 (Diversity in Contracting).
(NOI after depreciation)
IRR/NPV (if relevant)
N/A
CPE Impact
N/A
Future Revenues and Expenses (Total cost of ownership)
Aviation Maintenance anticipates no impacts to operating and maintenance costs, because of
the first phase of work. For phase two, Facilities and Infrastructure anticipates energy savings of
56,000 to 211,000 kilowatt hours (kWh) per year.
ATTACHMENTS TO THIS REQUEST
Presentation Slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
January 22, 2019 – The Commission authorized $4,251,500 for the design of the second
phase of work.
May 8, 2018 – The Commission authorized $595,000 for the design of the first phase of
work.