Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8c
ACTION ITEM
Date of Meeting
September 8, 2020
DATE: August 31, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Wayne Grotheer, Director, Aviation Project Management
Laurel Dunphy, Director, Aviation Operations
SUBJECT: Restroom Renovations Concourses B, C, and D (CIP #C800697)
ACTION REQUESTED
Request Commission authorization for the Executive Director to 1) advertise and execute a
major works construction contract for Phase 4 of the Restroom Upgrades on Concourses B, C,
and D project at Seattle-Tacoma International Airport; 2) execute a Project Labor Agreement for
this project; 3) use Port crews; and 4) increase the design authorization. The amount requested
under this authorization is $30,000,000 of an anticipated total project cost of $62,000,000.
EXECUTIVE SUMMARY
This is a five-phased project. The Phases 1 and 2 enabling projects are complete. Phase 3
restroom construction is nearing completion. This request is to construct the Phase 4 restrooms
and complete the design of the Phase 5 restrooms. A request for Phase 5 restroom construction
is anticipated in Q2 2022. The public restrooms on Concourses B, C, and D, are old, and
outdated. When complete the new restrooms created by this project will improve the
passenger experience by being brightly lit, featuring a touch free experience, and larger more
accessible stalls. COVID-19 social distancing and handwashing requirements are now
emphasizing the need for this project.
The budget for this five-phase project has increased from an original estimate of $38M to
$62M. This increase is due in part to complications during construction of earlier phases,
evolving Port standards, post-budget development of design, the addition of initiative-driven
inclusions like the All-Gender Restroom Initiative, and the impact of the bid overage on Phase 3.
The bids for Phase 3 exceeded the Engineer’s Estimate by 65%. On September 24, 2019, staff
requested that the Commission authorize execution of the Phase 3 construction contract
notwithstanding this bid overage. The bids were an indicator of the marketplace and have also
influenced the estimates for the remaining work in Phases 4 and 5.
Amount of this request:
$30,000,000
Total estimated project cost:
$62,000,000
COMMISSION AGENDA – Action Item No. _8c_ Page 2 of 7
Meeting Date: September 8, 2020
Template revised June 27, 2019 (Diversity in Contracting).
This project is partially funded with FAA Airport Improvement Program (AIP) passenger
entitlement grants for federal fiscal years 2021 and 2022.
JUSTIFICATION
The public restrooms on Concourse B, C, and D, in addition to being old, have limited air
circulation and odors that have permeated the finishes that often result in passenger’s
dissatisfaction with terminal restrooms. Enlarging, renovating and building new restrooms will
improve air circulation, reduce odors, and improve maintainability, accessibility and passenger
experience. COVID-19 has imposed new requirements on travelers including increased social
distancing and more frequent hand washing. This project, with its increase in restroom size and
number of fixtures, further improves the passenger experience in light of these new
requirements.
Diversity in Contracting
This federally funded project includes a 2% minimum utilization of certified Disadvantage
Business Enterprises (DBE).
DETAILS
The most recent estimate for the project originally came in at $67M, $5M higher than what is
being requested. The project team worked with project sponsors and stakeholders to develop
lower cost alternatives for Phases 4 and 5 for Airport Investment Committee review. The goal of
this cost-saving exercise was to meet project objectives while reducing cost during this
uncertain time. The selected alternative cost savings will come from a redesign of the Phase 4
restroom finishes. The new finishes will be consistent with the recently opened North Satellite
restrooms completed as part of the NorthSTAR program. Phase 5 will also be designed to this
new standard. By changing these finishes, the project team was able to identify an opportunity
for a $5M cost savings, while maintaining high-finish standards and meeting accessibility and
maintainability goals.
The estimated budget for Phases 1, 2 and 3 is $17M, Phase 4 (with Ph 5 design) is $30M and
Phase 5 construction is $15M. Phases 1 and 2 relocated tenants to make way for larger public
restrooms. Phase 3 will provide the first new public restrooms for this project when it is
complete in the third quarter of 2020. Phase 4 provides additional restroom space by
constructing new restrooms in spaces made available by earlier phases and will include the
Airport’s first All-Gender restrooms. Phase 5 will remodel the remaining public restrooms on
Concourses B, C and D. All the public restrooms created by Phase 5 will incorporate adult
changing tables, mother’s rooms, animal relief areas and additional family restrooms.
Project Labor Agreements (PLAs) have been used on past projects in order to reduce risk
to operations impacts and construction schedule delays caused by potential labor disputes. This
project will use a project specific PLA which has been approved by the FAA.
COMMISSION AGENDA – Action Item No. _8c_ Page 3 of 7
Meeting Date: September 8, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Scope of Work
The Phase 4 project scope of work includes enlarging and constructing four pairs of new public
restrooms, on Concourses B, C and D. Each restroom would utilize existing restroom space or
space repurposed by the previous enabling projects. The work on Concourse D also includes
construction of new All-Gender restrooms and a new common use customer service counter to
replace one removed by the project. The project will demolish existing spaces, all utilities, and
construct new restrooms with new finishes, new water, waste and air distribution and exhaust
systems, and touchless fixtures. This request also includes budget to redesign Phase 4 (to
reduce construction costs) and complete the design of Phase 5.
Schedule
Activity
2021 Quarter 2
2022 Quarter 4
2023 Quarter 4
Cost Breakdown
This Request
Total Project
$2,500,000
$7,587,000
$27,500,000
$54,413,000
$30,000,000
$62,000,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Staff evaluated numerous alternatives and selected seven for Airport Investment Committee
review. These alternatives included deleting future phases, re-finishing existing restrooms only,
and deleting selected amenities and features.
Alternative 1 – Complete Phases 1, 2, and 3 only.
Cost Implications: $18,142,000 previously spent with $0 of new spending (design costs to-date
of $1.5M would be expensed)
Pros:
(1) No additional capital expenditures
Cons:
(1) Loss of $12M in FAA AIP grants
(2) $1.5M in design costs would need to be expensed
(3) Project objectives would not be met
(4) Reduce business opportunities to DBE
(5) Customer service would not improve
(6) Restrooms would still need to be renovated and would leave a shortage of restrooms
when traffic returns.
COMMISSION AGENDA – Action Item No. _8c_ Page 4 of 7
Meeting Date: September 8, 2020
Template revised June 27, 2019 (Diversity in Contracting).
This is not the recommended alternative.
Alternative 2 – Proceed with Phases 4 and 5, as currently designed.
Cost Implications: $67,000,000 total project cost
Pros:
(1) Maximize FAA Grant Funding
(2) Provides business opportunities to DBE
(3) Implements All-Gender Restrooms
(4) Expands customer amenities
o Mother’s Rooms
o Animal Relief Areas
(5) Improves accessibility at Sea-Tac
o Ambulatory stalls
o Adult changing tables
(6) Improved maintainability of restrooms, including janitorial services
Cons:
(1) Highest cost alternative
This is not the recommended alternative.
Alternative 3– Use cost saving measures to and redesign Phases 4 and 5.
Cost Implications: $62,000,000 total project cost
Pros:
(1) Maximize FAA Grant Funding
(2) Provides business opportunities to DBE
(3) Implements All-Gender Restrooms
(4) Expands customer amenities
o Mother’s Rooms
o Animal Relief Areas
(5) Improves accessibility at Sea-Tac
o Ambulatory stalls
o Adult changing tables
(6) Improves maintainability of restrooms, including janitorial services
(7) Saves cost on finishes.
(8) Increases restroom capacity.
(9) Prudent recommendation based on cost.
Cons:
(1) Requires capital investment during an unstable time.
(2) Design differs from the new Phase 3 restroom on Concourse D.
COMMISSION AGENDA – Action Item No. _8c_ Page 5 of 7
Meeting Date: September 8, 2020
Template revised June 27, 2019 (Diversity in Contracting).
(3) Redesign of Phase 4 and revised design of Phase 5 will add cost.
(4) Requires additional time in the project schedule to account for the redesign effort.
(5) The availability and amount of FAA funding may be at risk due to the added time to
the schedule.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
The original estimate was developed in 2015. Beginning in 2016 the project scope was
expanded to include larger restrooms and additions to early enabling phases, which brought
the project total to $38M.
Cost Estimate/Authorization Summary
Capital
Expense
Total
$11,180,000
$0
$11,180,000
$27,158,000
$41,000
$27,199,000
$38,338,000
$41,000
$38,379,000
$22,978,000
$0
$22,978,000
$643,000
$0
$643,000
$61,959,000
$41,000
$62,000,000
$18,101,000
$41,000
$18,142,000
$30,000,000
$0
$30,000,000
$48,101,000
$41,000
$48,142,000
$13,858,000
$0
$13,858,000
Annual Budget Status and Source of Funds
This project is included in the 2019-2023 capital budget and plan of finance. The funding plan
includes FAA grants current and future revenue bonds.
Financial Analysis and Summary
Project cost for analysis
$62,000,000
Business Unit (BU)
Terminal
Effect on business performance
(NOI after depreciation)
NOI after depreciation will decrease
IRR/NPV (if relevant)
N/A
CPE Impact
$0.07 upon project completion
COMMISSION AGENDA – Action Item No. _8c_ Page 6 of 7
Meeting Date: September 8, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Future Revenues and Expenses (Total cost of ownership)
Aviation Maintenance anticipates minimal impacts to operating and maintenance costs, as a
result of the scope of work in Phase 4 of this project. In Phase 4, four sets of restrooms are
being built and three sets of restrooms are being renovated.
ADDITIONAL BACKGROUND
Budget Challenges
As mentioned above, the budget for this five-phase project has increased from an original
estimate of $38M to $62M. Major impacts to the budget included:
(1) Complications during construction of earlier phases. Phases 1 and 2 faced significant
unforeseen site conditions such as interfering system infrastructure transiting the
project sites, and underground building structural components that were not
documented in the building records.
(2) During the project, the Port’s design standards changed, and the impacts of these
changes were not reflected in the budget. One example would be the incorporation of
“ambulatory” toilet stalls, which provide greater maneuvering room for users but also
require additional space and therefore a larger restroom to provide the same number
of fixtures and can result in higher costs. This was also true for the addition of
inclusions like the initiative-driven All-Gender Restrooms, mother’s rooms, and adult
changing tables all of which were not included in the original estimate and cost more
compared to the original project estimate.
(3) The impact of the bid overage on Phase 3. The bids for Phase 3 exceeded the
Engineer’s Estimate by 65%. The bids were reflective of the construction market and
have also influenced the estimates for the remaining work in Phases 4 and 5.
(4) Spaces newly allocated for additional restrooms required more infrastructure
improvements than first anticipated. Additional plumbing, air distribution and exhaust
venting, and electrical for lighting and touchless features increased the project costs.
(5) COVID-19 added changes during construction.
Lessons Learned
The project team has developed a list of lessons learned in the development of the project.
These include:
(1) Investing in preliminary design (10-15% design) before finalizing a project’s budget.
The Airport has now adopted the use of Project Definition Documents (PDD) for this
purpose on large or complex projects. The PDD can include more thorough site
investigation where needed.
(2) Employing change management to address budget impacts of initiatives inclusion. The
Airport has now adopted a more formalized change management process which
requires project teams to calculate the cost impacts of changes, communicate those
impacts, and seek approval at a senior management or executive level (depending on
the cost) before implementing.
COMMISSION AGENDA – Action Item No. _8c_ Page 7 of 7
Meeting Date: September 8, 2020
Template revised June 27, 2019 (Diversity in Contracting).
(3) Challenging the project team to design to budget. Design choices often have a cost
implication and including those costs in the review process may lead to more informed
choices.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
(2) Project specific PLA agreement
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
August 11, 2020 –Commission authorized the Executive Director to increase the authorized
spending by $350,000, of which $232,000 are COVID-19 related.
July 29, 2020 – Commission notification for Phase 3 construction contract – cumulative
change orders exceeding 10%
May 21, 2020 – The Commission was notified of change orders exceeding 10% and 25% of
the original contract amount for Phase 2.
September 24, 2019 – The Commission authorized execution of a construction contract for
Phase 3 of this project that was more than 10% over the engineers estimate and
authorized additional construction funds for $1,200,000.
September 24, 2019 – Commissioners and Executive Director Metruck received an Executive
Response from Aviation Managing Director Lyttle regarding All-Gender Restrooms.
September 12, 2019, Commissioners and Executive Director Metruck received an Executive
Response from Aviation Managing Director Lyttle.
February 26, 2019 – The Commission was briefed by staff on a recommendation to move
forward with motion to develop a Seattle-Tacoma International Airport gender inclusive
restroom plan.
October 23, 2018 – The Commission authorized construction of Phase Two and Phase Three
of this project for $8,969,000.
October 23, 2018 – The Commission was briefed on the status of the motion to develop a
Seattle-Tacoma International Airport gender inclusive restroom plan.
May 22, 2018 – The Commission heard a motion to develop a Seattle-Tacoma International
Airport gender inclusive restroom plan.
September 12, 2017 – The Commission authorized construction of Phase One of this project
for $2,536,000
July 12, 2016 – The Commission authorized the design for $5,087,000.