Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6e
ACTION ITEM
Date of Meeting
July 28, 2020
DATE: July 20, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Laurel Dunphy, Director, Aviation Operations
Wayne Grotheer, Director, Aviation Project Management Group
SUBJECT: Parking Garage Elevator Modernization (CIP# C800789)
Amount of this request:
$16,160,000
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 second phase of the Parking Garage Elevator Modernization
Project at Seattle-Tacoma International Airport. The amount of this request is $16,160,000 for 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 will weatherize the 8th floor Parking Garage Sections B and C
elevator cores, eliminate slip or trip hazards, and improve the customer experience in the
Parking Garage elevator lobbies. The construction contract for this phase of work was recently
executed, and a “notice-to-proceed” will be issued for this work on July 27, 2020. 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.
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 saving estimate is 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 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.
COMMISSION AGENDA – Action Item No. __6e__ Page 2 of 5
Meeting Date: July 28, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Diversity in Contracting
The project staff, in coordination with the Diversity in Contracting Department, have set a 5%
woman and minority-owned business enterprise (WMBE) aspirational goal for the Phase 2
construction contract. A WMBE aspirational goal of 14% was established for the Phase 1
construction contract.
DETAILS
The first phase of the project was advertised for construction bids on April 7, 2020, and bids
were received on May 7, 2020. Notice to Proceed is scheduled to occur on July 27, 2020, and
substantial completion is estimated on January 2, 2021.
Phase 2 of the project is under final design review and is estimated to advertise for construction
bids on August 28, 2020. To minimize negative impacts to customer service and ensure
adequate vertical circulation, the construction will be completed over a 2.5-year period. Notice
to proceed is scheduled for April 6, 2021.
Scope of Work
The second phase of the project will replace 10 elevators serving the Parking Garage Sections B
and C elevator cores, replace nine of ten motor drives serving elevators in the Parking Garage
Sections D and E elevator cores, and provide new call buttons, lighting and cab finishes in all 27
elevator cabs within the parking garage (including those in the Parking Garage Section A). These
modifications will enhance the customer experience and maintain the operational integrity of
the vertical conveyance system within the airport parking garage.
Schedule
The first phase of the project will be completed in the first quarter of 2021.
The second phase of the project contains the following milestones:
Activity
Construction start
In-use date (First Elevator Bank)
In-use date (Final Elevator Bank)
Cost Breakdown – Phase 1
This Request
Total Work Project
Design
$0
$595,000
Construction
$0
$2,755,000
Sub-Total
$0
$3,350,000
COMMISSION AGENDA – Action Item No. __6e__ Page 3 of 5
Meeting Date: July 28, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Cost Breakdown – Phase 2
This Request
Total Work Project
Design
$0
$3,766,000
Construction
$16,160,000
$16,160,000
Sub-Total
$16,160,000
$19,926,000
Combined (Phases 1 & 2) Cost Breakdown
This Request
Total Project
Design
$0
$4,361,000
Construction
$16,160,000
$18,915,000
Total
$16,160,000
$23,276,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
The following alternatives and implications only apply to the second phase of the project.
Alternative 1 – Status Quo – No action alternative
Cost Implications: $400,000 (expensed)
Pros:
(1) Does not require capital investment.
(2) Does not involve any shutdown of the current facilities.
Cons:
(1) This option would result in the facility continuing to deteriorate until multiple failures
occur.
(2) This option would only delay necessary repairs to a future date when the elevator
replacement program may be more expensive and more disruptive to day-to-day
operations.
(3) The Parking Garage facility would not experience the energy savings that the
replacement systems would deliver.
(4) Since the Parking Garage is a significant revenue source, a “planned” outage should be
considered more desirable than an “unplanned” outage.
This is not the recommended alternative.
Alternative 2 – This option would completely replace the ten elevators in the Parking Garage
Sections B and C elevator cores and make significant operational improvements to nine of ten
elevators in the Parking Garage Sections D and E elevator cores. All 27 elevators within the
parking garage will receive new call buttons, lighting and cab finishes (including those in Parking
Garage Section A).
Cost Implications: $19,926,000
Pros:
(1) Minimizes the disruption to the Parking Garage in a controlled manner.
COMMISSION AGENDA – Action Item No. __6e__ Page 4 of 5
Meeting Date: July 28, 2020
Template revised June 27, 2019 (Diversity in Contracting).
(2) The Parking Garage facility will experience the energy savings that the modernization
program will deliver.
(3) Would result in a total construction schedule of approximately 32 months.
Cons:
(1) Results in a significant 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
Previous changes – net
($25,000)
$25,000
0
Current change
0
0
0
Revised estimate
$23,251,000
$25,000
$23,276,000
AUTHORIZATION
Previous authorizations
$7,091,000
$25,000
$7,116,000
Current request for authorization
$16,160,000
0
$16,160,000
Total authorizations, including this request
$23,251,000
$25,000
$23,276,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
The Parking Garage Elevator Modernization project (#C800789) is included in the 2020-2024
capital budget and plan of finance with a budget of $23,251,000 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)
NOI after depreciation will decrease
IRR/NPV (if relevant)
N/A
CPE Impact
N/A
COMMISSION AGENDA – Action Item No. __6e__ Page 5 of 5
Meeting Date: July 28, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Future Revenues and Expenses (Total cost of ownership)
Renovation is expected to reduce future repair costs and increase the operational availability of
the system. The estimated useful life will be extended for all 27 elevators located in the parking
garage. The new elevators in Sections PGB and PGC (10 elevators total) will have a useful life of
approximately 20 years, while the remaining 17 elevators located in Sections PGA, PGD and PGE
will have a useful life of 10 years.
ATTACHMENTS TO THIS REQUEST
1. Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
October 22, 2019 – The Commission authorized $2,155,000 for the construction of the first
phase of work.
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.