Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6h
ACTION ITEM
Date of Meeting
November 12, 2019
DATE: November 4, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Jeffrey Brown, Director, Aviation Facility and Capital Programs
Wayne Grotheer, Director, Aviation Project Management
SUBJECT: Air Cargo 4 Maintenance Building Upgrade (CIP #800924)
Amount of this request:
$879,000
Total estimated project cost:
$3,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) prepare design and
construction bid documents for the Air Cargo 4 Maintenance Building Upgrades project at
Seattle-Tacoma International Airport; (2) use Port crews for preconstruction activities. The
amount of this request is $879,000 for a total estimated project cost not to exceed $3,000,000.
EXECUTIVE SUMMARY
This project provides the necessary upgrades to maintain operability of the Air Cargo 4
Maintenance Building (AC4). This facility operates 24 hours per day, 7 days a week, and the
employees housed here provide crucial maintenance work to keep the runways and airport
operational. Through upgrading the failing Heating, Ventilation, and Air Conditioning (HVAC)
system; insufficient communication and connectivity infrastructure, outdated phone lines, and
inadequate office lighting, this project will address the facility’s most critical needs and
drastically improve this deficient and poorly functioning facility.
The current estimated cost of $3.0 million is $1.6 million less than the original cost estimate due
to scope reductions given that the facility is anticipated to be demolished in approximately six
years for projects coming out of the Sustainable Airport Master Plan (SAMP).
JUSTIFICATION
The AC4 Maintenance Building is a nearly 50-year-old, former mail sorting facility, that has had
minimal updates and modifications to accommodate the offices and shop areas of the 120 Port
maintenance staff who work there. The maintenance groups housed in this facility perform
crucial maintenance work 24 hours a day, 365 days a year, to keep the airport and runways
operational. This work includes winter runway and airport-drive snow operations; servicing of
the Port’s fleet vehicles, police cars, and airport shuttle buses; repairs and maintenance to
COMMISSION AGENDA – Action Item No. __6h__ Page 2 of 5
Meeting Date: November 12, 2019
Template revised September 22, 2016; format updates October 19, 2016.
runways, taxiways, ramps, and airfield lighting; and carpentry, painting, and striping work
throughout the airport’s property. This is a small and incomplete list of the services this group
provides daily, to the operation and maintainability of our world-class international airport.
DETAILS
This project will modernize the communications and connectivity infrastructure, resolving the
failing communication issues, and providing support for use of the Port’s current digital phone
system. Additionally, this project will address end-of-life HVAC systems, and replace insufficient
office and breakroom lighting and ventilation. An added benefit to the new lighting is an
estimated energy savings of approximately 166,000kWh/year, furthermore, we will be pursuing
available Bonneville Power Administration (BPA) energy rebates to offset the cost of the new
lighting fixtures.
This project addresses the facility’s most critical needs in one major construction project.
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)
attainment. These affirmative efforts are in accordance with Resolution No. 3737.
Scope of Work
These vital improvements are necessary for a minimally functioning facility and marginally
acceptable working environment for the 120+ employees who work there:
(1) New HVAC equipment
(2) New/additional fiber optic and copper cabling
(3) New/additional high-grade wireless access point (WAP) units
(4) New/additional tele/data outlets
(5) New energy efficient LED light fixtures and occupancy sensors
(6) New acoustical ceiling grid panels
(7) New exhaust fans and hood vent
(8) Spot abatement
Schedule
The project schedule reflects that this facility operates 24/7, year-round. Most of the required
work will be performed during the evening shift when there is minimal crew on-site, for a
moderate but manageable impact to the facility and employees during construction. Potential
impacts to this schedule are winter weather threats when this facility and its crew perform vital
snow operations.
Activity
Design start
Commission construction authorization
COMMISSION AGENDA – Action Item No. __6h__ Page 3 of 5
Meeting Date: November 12, 2019
Template revised September 22, 2016; format updates October 19, 2016.
Construction start
In-use date
Cost Breakdown
This Request
Total Project
Design Phase
$879,000
Construction Phase
$0
Total
$879,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – This alternative addresses the most pressing needs of the facility including
insufficient communications and connectivity infrastructure; end-of-life HVAC systems; and
replaces inefficient office and break room lighting and ventilation.
Cost Implications: Estimated project cost of $3,000,000
Pros:
(1) This project improves the facility’s most critically needed upgrades in one major
construction project.
(2) Creates a better functioning facility and increased workstation efficiency.
(3) Provides a more comfortable work environment, fostering increased employee
satisfaction.
Cons:
(1) Requires capital investment.
(2) Moderate but manageable impacts to facility operations during construction.
(3) This building is targeted for demolition (in an estimated 6 years) in support of the
Sustainable Airport Master Plan (SAMP).
This is the recommended alternative.
Alternative 2 – This alternative includes all the scope of Alternative 1 with the addition of
updating bathrooms; addition of new restroom and showers; new storage areas; updates to
locker room, kitchen, and breakroom; improved ADA access; new HVAC; and modernized
wired/wireless communications and connectivity infrastructure.
Cost Implications: $8,075,000
Pros:
(1) This project would improve the entire facility in one major construction project.
(2) Creates a better functioning facility and increases workstation efficiency.
(3) Provides for a more comfortable work environment for employees.
Cons:
(1) This building is targeted for tear down (in an estimated 6 years) in support of the
Sustainable Airport Master Plan (SAMP). This will result in a shorter life span than
normal for assets of this type.
COMMISSION AGENDA – Action Item No. __6h__ Page 4 of 5
Meeting Date: November 12, 2019
Template revised September 22, 2016; format updates October 19, 2016.
(2) Highest cost alternative
This is not the recommended alternative.
Alternative 3 – Do not proceed with the renewal and replacement upgrades.
Cost Implications: $77,700 in project development funds would have to be expensed.
Pros:
(1) No Capital funding would be required with this alternative.
Cons:
(1) Leaving the facility unimproved would not address critically needed communications
and connectivity updates, failing HVAC systems and poor office lighting.
(2) The 120+ employees will have to continue to operate in an inefficient, less-than-ideal
work environment.
This is not the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$4,566,000
$0
$4,566,000
Current change
($1,632,000)
$66,000
($1,566,000)
Revised estimate
$2,934,000
$66,000
$3,000,000
AUTHORIZATION
Previous authorizations
$100,000
0
$100,000
Current request for authorization
$879,000
0
$879,000
Total authorizations, including this request
$979,000
0
$979,000
Remaining amount to be authorized
$1,955,000
$66,000
$2,021,000
Annual Budget Status and Source of Funds
This project, CIP C800924, was included in the 2019-2023 capital budget and plan of finance
with a budget of $4,566,000. The cost reduction reflects reduced scope given that the facility is
expected to be demolished for projects coming out of SAMP. A budget decrease of $1,632,000
was transferred to the Aeronautical Reserve CIP (C800753) resulting in zero net change to the
Aviation capital budget. The funding source will be the Airport Development Fund.
COMMISSION AGENDA – Action Item No. __6h__ Page 5 of 5
Meeting Date: November 12, 2019
Template revised September 22, 2016; format updates October 19, 2016.
Financial Analysis and Summary
Project cost for analysis
$ 3,000,000
Business Unit (BU)
Division-wide, 66% Aeronautical
Effect on business performance
(NOI after depreciation)
NOI after depreciation will decrease as amounts
recovered through airline rate base charges will not cover
depreciation.
IRR/NPV (if relevant)
N/A
CPE Impact
$.02 in 2022
Future Revenues and Expenses (Total cost of ownership)
This project is a renewal and replacement project, as such, Aviation Maintenance does not
anticipate any increase, and may even realize a slight reduction in long-term maintenance
costs.
ATTACHMENTS TO THIS
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None