Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6c
ACTION ITEM
Date of Meeting
August 11, 2020
DATE: August 3, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Eileen Francisco, Acting Director - Aviation Facilities and Capital Programs
Wayne Grotheer, Director - Aviation Project Management Group
SUBJECT: Concourse C Temporary Air Handling Units (CIP#801149)
Amount of this request:
$1,950,000
Total estimated project cost:
$2,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) complete design, (2)
advertise and execute a major public works construction contract, and (3) utilize Port crews for
preconstruction activities for the Concourse C Temporary Air Handling Units project at Seattle-
Tacoma International Airport. This authorization is for $1,950,000, for a total estimated project
cost of $2,000,000.
EXECUTIVE SUMMARY
The existing Air Handling Units (AHUs) on Concourse C are at maximum capacity and are no
longer able to meet current demands. Additional air is needed for tenant buildouts of additional
Airport Dining and Retail (ADR) spaces and new restrooms. Two additional AHUs will be added
on the roof of Concourse C to provide additional air until a planned future project will upsize all
the existing AHUs on Concourse C. The future project which will upgrade and replace all the
AHUs and add smoke control will take several years to complete due to the size and complexity
of the project. These temporary units are needed now to meet existing lease agreements with
tenants and to support the new restrooms that will be built in 2021 to improve passenger
experience.
JUSTIFICATION
Three ADR leases have been signed to replace a single existing restaurant space. The new leases
consist of two restaurants and a retail space which requires additional air capacity as compared
to the previous single restaurant. The restrooms on Concourse C are being replaced to provide
better passenger experience and are increasing the turnover rate of air in the restrooms from
eight times per minute to twenty times per minute. These modifications exceed the existing
system’s capacity.
COMMISSION AGENDA – Action Item No. __6c__ Page 2 of 4
Meeting Date: August 11, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Adding the two temporary units will provide the additional capacity for the next five to ten years
until the future project to upgrade all the air handlers, including the addition of smoke control,
can be completed. This larger project will also replace and upgrade all the AHUs on Concourses
B and D which are at the end of useful life.
Diversity in Contracting
The project team with the Diversity in Contracting Department determined a Small Business
Utilization requirement of five percent for the IDIQ Design contract. For the major works
construction contract the aspirational goal for participation of WMBE is six percent.
DETAILS
This project installs two new energy efficient AHUs to provide additional air capacity to
Concourse C to improve passenger experience.
Scope of Work
The project requires additional air capacity in two zones at Concourse C. To accomplish the work:
(1) Design services for this scope of work will be provided under existing indefinite delivery,
indefinite quantity (IDIQ) design services contract.
(2) Two, 5,000 CFM AHUs will be installed on the roof of Concourse C and have heating and
chilled water connected from the campus systems, along with direct digital controls
wiring for control and monitoring of the equipment. A major public works construction
project will be used to perform the work.
Schedule
Activity
Design start
Construction start
In-use date
Cost Breakdown
This Request
Total Project
Design
$200,000
$250,000
Construction
$1,750,000
$1,750,000
Total
$2,000,000
$2,000,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Rent two temporary units instead of purchasing them.
Cost Implications: $2,800,000
Pros:
(1) May be able to get the units installed sooner.
COMMISSION AGENDA – Action Item No. __6c__ Page 3 of 4
Meeting Date: August 11, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) Higher cost.
(2) May not meet seismic requirements.
This is not the recommended alternative.
Alternative 2 – Purchase and install two, 5,000 cfm AHUs and required auxiliary equipment.
Cost Implications: $2,000,000
Pros:
(1) Provides the air required to complete all projects in the area.
Cons:
(1) Requires capital investment.
(2) Only a 5-10-year solution until a future larger project replaces all the existing AHUs.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$2,000,000
$0
$2,000,000
AUTHORIZATION
Previous authorizations
$50,000
$0
$50,000
Current request for authorization
$1,950,000
$0
$1,950,000
Total authorizations, including this request
$2,000,000
$0
$2,000,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project, CIP# C801149 was not included in the 2020-2024 capital budget and plan of finance.
A budget transfer of $2,000,000 was transferred from the Aeronautical Reserve CIP# (C800753)
resulting in zero net change to the Aviation capital budget. The funding source will be revenue
bonds.
Financial Analysis and Summary
Project cost for analysis
$2,000,000
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
$.01 in 2022
COMMISSION AGENDA – Action Item No. __6c__ Page 4 of 4
Meeting Date: August 11, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Future Revenues and Expenses (Total cost of ownership)
This project will add additional equipment and will impact current Aviation Maintenance O&M
costs.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None