Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6c
ACTION ITEM
Date of Meeting
February 25, 2020
DATE: February 14, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Dwight Rives, Director Port Construction Services
Wayne Grotheer, Director Aviation Project Management Group
SUBJECT: Air Cargo 5 (AC-5) Ground Boarding Facility, Additional Funding Ratification to Close-out
the project (CIP #C801089)
Amount of this request:
$25,000
Total estimated project cost:
$575,000
ACTION REQUESTED
Request Commission ratification and authorization of the additional expenditure of $25,000
needed to close out the Air Cargo 5 Ground Boarding Facility project at Seattle-Tacoma
International Airport for a total revised authorization of $575,000.
EXECUTIVE SUMMARY
This action requests additional funds to complete closeout for a pre-fabricated building with a
restroom and breakroom for 15-20 employees. This project serves two purposes; first to support
mitigation of North Satellite (NSAT) construction impacts to Alaska operations and second to
accommodate increased use of Air Cargo area five (AC-5) hardstand for multiple airline ground
board operations.
JUSTIFICATION
The project is complete and operating. An added $25,000 expenditure was necessary for changes
near the end of the project and to close-out the project. The modest increase was necessary
because of varying site conditions and code compliance discovered during construction.
DETAILS
The project was executed as a separate CIP under the umbrella of the NorthSTAR program
managed by the NSAT project management team. The pre-fabricated trailer was procured using a
Port accessible, existing state contract, placed and with utilities tie-in work completed by Port
Construction Services (PCS) with design support from an existing consulting design contract. In
April 2019, the Port initiated a project to install a pre-fabricated trailer at the AC-5 Ground
Boarding Facility. Roles and responsibilities for the project were established as follows:
COMMISSION AGENDA – Action Item No. _6c_ Page 2 of 3
Meeting Date: February 25, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Aviation Project Management Group
(1) Manage the project.
(2) Procure the trailer using a Port accessible, existing state contract.
(3) Prepare design documents using an existing contract.
(4) Provide an approved building permit.
(5) Coordinate and schedule the work.
Port Construction Services
(1) Excavate and connection to existing underground site utilities (i.e., domestic water,
sanitary sewer, fire sprinkler).
(2) Provide escort services during trailer delivery and placement.
(3) Install electrical power and telecommunications utilities.
Project design was completed on July 12, the building permit was approved on August 15, and
construction started on September 12, 2019. During construction, several additional scope items
were identified whose total cost exceeded the contingencies included in the budget PCS
established.
Completing the project resulted in a project cost overrun of $25,000.
Diversity in Contracting
Not applicable to this request; all work is complete.
Scope of Work
Increase the authorization by $25,000 ($25,000 capital and $0 expense) to close out the project for
a total authorization of $575,000.
Schedule
The construction has been completed and the project is in close out.
Activity
Commission design authorization
N/A
Design start
N/A
Commission construction authorization
2019 Quarter 2
Construction start
2019 Quarter 3
In-use date
2019 Quarter 4
This Request
Total Project
Design
$0
$50,000
Construction
$25,000
$525,000
Total
$25,000
$575,000
COMMISSION AGENDA – Action Item No. _6c_ Page 3 of 3
Meeting Date: February 25, 2020
Template revised June 27, 2019 (Diversity in Contracting).
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$550,000
$0
$550,000
Current change
$25,000
0
$25,000
Revised estimate
$575,000
0
$575,000
AUTHORIZATION
Previous authorizations
$550,000
0
$550,000
Current request for authorization
$25,000
0
$25,000
Total authorizations, including this request
$575,000
$0
$575,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
The Air Cargo 5 Ground Board Facility (CIP #C801089) was included in the 2020-2024 capital
budget and plan of finance with a budget of $550,000 (expected completion in 2019). The budget
increase was transferred from the Aeronautical Reserve CIP (#C800753) resulting in no net change
to the Aviation capital budget. The funding source will be Airport Development Fund.
Financial Analysis and Summary
Project cost for analysis
$575,000
Business Unit (BU)
Airfield Apron Area
Effect on business performance
(NOI after depreciation)
NOI after depreciation will increase
IRR/NPV (if relevant)
N/A
CPE Impact
Less than $0.01 in 2020
Future Revenues and Expenses (Total cost of ownership)
This facility completes the ground boarding operational set-up that was first considered and
committed to with the construction of the Concourse D Annex last year. The Port will incur
ongoing costs for regular janitorial, maintenance, and utility service of the trailer.
ATTACHMENTS TO THIS REQUEST
N/A
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
April 23, 2019 – The Commission authorized $500,000 for design and construction