Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6h
ACTION ITEM
Date of Meeting
June 9, 2020
DATE: May 29, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Wendy Reiter, Director Aviation Security
Wayne Grotheer, Director Aviation Project Management
SUBJECT: Construction Authorization for Airport Terminal Accessibility and Safety
Enhancements Phase II (CIP #C800862)
Amount of this request:
$ 3,784,000
Total estimated project cost:
$19,900,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to advertise and award a major
works construction contract for Phase II of the Airport Terminal Accessibility and Safety
Enhancements (TSE) project at Seattle-Tacoma International Airport (Airport). The amount of
this request is $3,784,000 for a total estimated project cost of $19,900,000.
EXECUTIVE SUMMARY
The TSE Phase II project is intended to improve passenger safety with the installation of
structural bollards along the airport’s arrivals and departures curbsides, the courtesy vehicle
plaza, and the pedestrian sky bridge entrances in the main garage. The installation of these
bollards has been identified as a key component of the overall comprehensive security program
at the airport. The project will also complete American with Disabilities Act (ADA) access
improvements along the arrivals and departures curbsides.
Construction bids were opened for this project, in August 2019, that were significantly higher
than the engineer’s estimate. Due to the significant cost increase, and the wide range of costs
between the bids, the bids were cancelled. The higher costs were attributed to three drivers: a
sole vendor providing the bollards, mobilization costs, and labor risk associated with
operational constraints along with an aggressive construction schedule. Staff has addressed
these issues by pursuing owner furnished equipment for the bollards and re-phasing the project
to minimize labor and logistics risks.
The overall project increase was also subject to a majority-in-interest (MII) vote of signatory
airlines and was approved in May 2020.
COMMISSION AGENDA – Action Item No. __6h__ Page 2 of 5
Meeting Date: June 9, 2020
Template revised June 27, 2019 (Diversity in Contracting).
JUSTIFICATION
The Phase II of the TSE program is necessary as it will provide an improved safe environment for
the airport passengers, vendors and staff. These improvements also provide ADA compliant
access improvements as recommended by the Accessibility Study completed by the Open Doors
Organization (ODO). These improvements support the port’s goal of making Seattle-Tacoma
International Airport the most accessible airport in the nation for people with disabilities.
Diversity in Contracting
Project staff worked with the Diversity in Contracting Department and have established eight
percent (8%) women- and minority-owned business enterprise (WMBE) aspirational goal for the
construction project.
DETAILS
On July 23, 2019, the project was advertised for construction bids with an engineer’s estimate
in the amount of $8,568,103. The Port cancelled the bids because all bids exceeded the
engineers estimate and the Port determined it was in our best interest to re-design the project
and delivery method. Based upon the bids received the total estimated project cost was
$24,000,000.
On January 28, 2020 the Commission authorized the procurement of the structural bollards as
owner procured materials in an attempt to increase competition resulting in a lower bollard
cost. A total of five proposals were received, ranging in cost from $1.5 to $2.9 million, and are
currently under evaluation.
The original scope had included sidewalk resurfacing, but in recent months the Aviation Division
determined it would be prudent to remove that scope due to lack of support from airlines. In
addition, the overall project costs have increased by $400,000 due to the additional health and
safety requirements necessary to perform construction during the pandemic.
Scope of Work
The project will install security and ADA access improvements at the entrances to the main
terminal from the arrivals and departures curbsides. The number of accessible loading zones
will increase from two to twelve on the arrival’s curbside, and from three to twelve on the
departure’s curbside. Security improvements will also be installed in the Main Garage at the
entrance to each of the six sky bridges and along the third-floor courtesy vehicle plaza. The
sidewalks will not be resurfaced.
Schedule
Activity
Execute Purchase Contract - Bollards
COMMISSION AGENDA – Action Item No. __6h__ Page 3 of 5
Meeting Date: June 9, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Advertise for Construction Bids
Start Construction / Issue Notice to Proceed
Construction Complete / In-Use Date
Cost Breakdown
This Request
Total Project
Design
$0
Construction
$3,784,000
Total
$3,784,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not proceed with Phase II of the TSE project
Cost Implications: $1,035,000 for a total of $4,352,000 (includes Phase I)
Pros:
(1) No capital investment by the Port
Cons:
(1) Does not increase the safety and security of the occupants of the Main Terminal.
(2) Does not enhance ADA accessibility at the Main Terminal curbside.
(3) Does not enhance aesthetics of the Main Terminal curbside and courtesy vehicle
plaza.
(4) The procurement of the structural bollards would need to be cancelled and a total of
$1,035,000 would need to be expensed.
This is not the recommended alternative.
Alternative 2 – Proceed with Phase II of the TSE project including sidewalk resurfacing.
Cost Implications: $20,582,912 for a total of $23,900,000 (includes Phase I)
Pros:
(1) The safety and security of the occupants of the Main Terminal will be increased.
(2) The arrivals and departures curbsides will become compliant with current ADA
standards and helps expedite achieving the Port goal of making the Airport the most
accessible airport for people with disabilities in the nation.
(3) The arrivals and departures curbsides, and courtesy vehicle plaza, will be resurfaced to
improve the aesthetics of the curb front that greets passengers as they arrive and
depart the Airport.
Cons:
(1) Requires a capital investment of $20,582,912 by the Port.
COMMISSION AGENDA – Action Item No. __6h__ Page 4 of 5
Meeting Date: June 9, 2020
Template revised June 27, 2019 (Diversity in Contracting).
(2) Sidewalk resurfacing scope is not supported by the airline tenants.
This is not the recommended alternative.
Alternative 3 – Proceed with bollard installation and ADA access ramp improvements. The
sidewalk resurfacing is not included.
Cost Implications: $16,582,912 for a total of $19,900,000 (includes Phase I)
Pros:
(1) The safety and security of the occupants of the Main Terminal will be increased.
(2) The arrivals and departures curbsides will become compliant with current ADA
standards and helps expedite achieving the Port goal of making the Airport the most
accessible airport for people with disabilities in the nation.
Cons:
(1) Requires capital investment of $16,582,912 by the Port.
(2) Does not take advantage of an opportunity to resurface the sidewalks as one
construction contract, reducing the total cost to the Port for both efforts, and
minimizing construction impacts on the traveling public, should sidewalk resurfacing
be desired at a later date
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$9,854,000
$0
$9,854,000
Previous changes – net
$5,469,546
$792,454
$6,262,000
Current change
$4,072,339
($288,339)
$3,784,000
Revised estimate
$19,395,885
$504,115
$19,900,000
AUTHORIZATION
Previous authorizations
$15,611,885
$504,115
$16,116,000
Current request for authorization
$3,784,000
$0
$3,784,000
Total authorizations, including this request
$19,395,885
$504,115
$19,900,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project was included in the 2020 – 2024 capital budget and plan of finance with a budget
amount of $15,323,000. A budget increase of $4.1M was transferred from the Aeronautical
Reserve CIP (C800753) resulting in zero net change to the Aviation capital budget. The funding
COMMISSION AGENDA – Action Item No. __6h__ Page 5 of 5
Meeting Date: June 9, 2020
Template revised June 27, 2019 (Diversity in Contracting).
source will be existing revenue bonds. This project was initially approved by the signatory
airlines via the April 2019 MII vote, and again in May 2020 for the budget increase.
Financial Analysis and Summary
Project cost for analysis
$19,900,000
Business Unit (BU)
Terminal Building
Effect on business performance
(NOI after depreciation)
NOI after depreciation will increase due to inclusion of
capital (and operating) costs in airline rate base.
IRR/NPV (if relevant)
N/A
CPE Impact
$.10 in 2022
Future Revenues and Expenses (Total cost of ownership)
Port staff does not anticipate a significant change in the on-going operation and maintenance
costs associated with these efforts since minimal preventive maintenance is performed on the
security and access improvements.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
January 28, 2020 – The Commission authorized the purchase of structural bollards for Phase
II of the Airport Terminal Accessibility and Safety Enhancements project.
May 3, 2019 – The Commission authorized the advertisement and execution of a major
works construction contract for Phase II of the Airport Terminal Accessibility and Safety
Enhancements project.
January 30, 2018 – The Commission authorized the design and preparation of contract bid
documents for Phase II of the Airport Terminal Safety and Security Enhancements
project.
October 24, 2017 – The Commission authorized the design, preparation of contract bid
documents, advertisement and execution of a major works construction contract for
Phase I of the Airport Terminal Safety and Security Enhancements project.