Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
10b
BRIEFING ITEM
Date of Meeting
December 15, 2020
DATE: December 8, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Elizabeth Leavitt, Senior Director Engineering, Environment and Sustainability
Arlyn Purcell, Director Aviation Environment and Sustainability
Wayne Grotheer, Director Aviation Project Management
SUBJECT: Airport Noise Programs Briefing
EXECUTIVE SUMMARY
As part of the Port’s long-term commitment to communities surrounding the airport, the Port
offers sound insulation for eligible properties within the current Federal Aviation Administration
(FAA) approved noise remedy boundary. On February 25, 2020, the Commission adopted Motion
2020-04 to implement the acceleration of the airport’s noise mitigation (sound insulation and
acquisition) programs with direction to complete prior to 2027. Remaining work within the
program includes renovations on up to one-hundred forty (140) single-family homes, three (3)
condo complexes comprised of one-hundred and thirty-three (133) units in total, eighteen (18)
separate apartment complexes comprised of nine-hundred and three (903) units in total, and
seven (7) places of worship. The program also includes voluntary acquisition of two (2) single-
family homes and one (1) apartment building in the 3
rd
runway South Approach Transition Zone.
The final number of required renovations is dependent upon owner participation and program
eligibility pending noise testing results. Renovations typically include new windows, doors, storm
doors, and ventilation for each unit in order to meet the FAA standard of a 45 decibel (dB) or
lower interior noise level.
The objectives of this briefing are to (1) inform the Commission about progress made since the
February Motion to accelerate the program, (2) lay out schedule, budget, and funding scenarios,
and (3) discuss risks to the program and potential mitigations to those risks.
PROGRAM STATUS UPDATE
The airport has made progress on implementation of the FAA-approved mitigation measures, but
due to current FAA Airport Improvement Program (AIP) grant funding limitations, Port staffing
resource limitations, and airport business priorities, many residences remain to be insulated.
Remaining potentially eligible sound insulation and acquisition projects include:
• Continued sound insulation for single-family homes – 140, with an estimate of 80 that will
participate in the program based on historic data.
COMMISSION AGENDA – Briefing Item No. __10b__ Page 2 of 8
Meeting Date: December 15, 2020
Template revised September 22, 2016.
• Continued sound insulation for condominiums – 3 complexes / 133 units.
• Future sound insulation of apartment complexes – 18 complexes / 903 units.
• Future sound insulation of places of worship – 7 structures.
• Future voluntary acquisition of residential units in the 3
rd
Runway South Approach
Transition Zone – Estimated 2 homes and 1 apartment complex (6 units).
The Airport Noise Programs acceleration planning in 2020 included conducting airport peer
reviews, determining program structure, identifying staff and consultant resource requirements,
and refining cost and budget estimates.
Planned 2020 work
Pre-COVID, planned 2020 work included completion of sound insulation on ten single-family
homes, and completion of design and commencement of construction on the first condo
complex, Villa Enzian in Des Moines. The planned work was heavily impacted by COVID-19 and
the Governor’s Stay Home Stay Healthy orders. The inability to enter homes caused delays to
eligibility testing, site inspections needed for designs, and construction access. In response, staff
secured COVID-19 safety plans with Port Health and Safety for program contractors to conduct
on site acoustic testing for Whispering Brook condos and 18 single-family homes. In addition,
staff developed a creative approach to keep work moving on single-family site assessments by
doing them virtually. As of November 2020, there are 27 single-family homes in the sound
insulation “pipeline,” including 18 homes tested and eligible, six homes completed assessments
in November, and three homes ready for construction. However, the single-family program faces
potential delays due to the subordination agreement issue (see below).
The project team completed the Villa Enzian design, obtained approval from FAA, requested
construction bids, and scheduled the project to begin physical construction in January 2021.
However, staff decided to cancel the bid opening due to challenges obtaining subordination or
consent agreements (see below).
As a requirement of the program, all homeowners with mortgages are required to obtain either
a subordination or consent agreement from their lenders. A subordination agreement is
preferred and provides the best protection for the Port against losing the avigation easement on
the title in the case of loan default. A consent agreement provides protection to a lesser degree.
Both agreements (subordination and consent) are between the homeowner and the lender, but
staff can assist in the documentation process to the extent possible.
Changes in lender policies and real estate market conditions have resulted in limited success
obtaining subordination or consent agreements for most of the eligible homes in our programs.
Our staff and consulting teams have encountered roadblocks with lenders signing the required
homeowner agreements for program participation. The active COVID-19 pandemic has created
additional work for lending staff, reducing their priority on execution of homeowner agreements
which in turn has caused delay within the Port’s sound insulation programs. We are currently
working with our legal team, Port staff in other departments, and Commissioners to identify ways
COMMISSION AGENDA – Briefing Item No. __10b__ Page 3 of 8
Meeting Date: December 15, 2020
Template revised September 22, 2016.
to overcome the challenges. The team will continue to develop designs for single-family homes,
condos, and apartments in the upcoming year, but construction cannot occur on any home that
requires a subordination or consent agreement until a solution is put in place.
Funding
We have had preliminary discussions with the FAA to identify potential grant funding. Although
the FAA cannot commit to a dollar amount per year, they have expressed willingness to work
with us. Based on FAA’s informal input regarding historical FAA funding for sound insulation
programs at other airports, staff has developed scenarios showing FAA grant amounts of both
$10 and $20M per year. These scenarios are meant to illustrate possible grant funding outcomes;
the actual result will differ from these amounts. Recent FAA grants, including grant funding for
Highline School District work, have totaled $7.4M (2020), $18.4M (2019), and $1.8M (2018);
achieving a $10M or $20M grant stream would require close coordination with and strong
support from FAA.
FAA can provide grant funding for completed noise projects as reimbursements if the projects
are procured and managed meeting grant requirements. However, these expenditures would be
made at risk with no guarantee of FAA future grant funding. Noise project costs funded with
airport cash or revenue bonds are included in the airfield movement area cost center and
recovered from airlines through landing fees.
Capital costs paid by AIP grants (and Passenger Facility Charges) are excluded from the airline
rate base. Under the terms of the airline lease agreement, capital projects with rate base capital
costs of $10 million or more are subject to airline approval through the majority-in-interest (MII)
provisions. In prior years, the Port’s approach has been to proceed with Airport Noise Program
projects to the extent AIP grants are available. The airlines have generally been supportive of this
approach. Even though accelerating the program may result in lower total construction costs, if
the Port receives less AIP grant funding, the airline rate base costs could be higher. The Airport
Noise Program projects discussed above will likely be subject to airline review through a MII vote.
The Highline School District (HSD) Sound Insulation MOA also includes Port tax levy funding. This
funding source has more flexibility than AIP grant funding. The airport historically has not used
tax levy funding for airport projects other than the HSD sound insulation projects but levy funding
could be an option if no other funding sources are available.
Budget/Schedule
Cost estimates have been refined based on market conditions, historical costs, and information
learned through peer reviews. The cost estimate ranges are wide because the program is still in
a concept stage with a large majority of homes inaccessible for investigation. Not opening the
Villa Enzian construction bids, as described above, has eliminated for now a valuable source of
construction market data.
COMMISSION AGENDA – Briefing Item No. __10b__ Page 4 of 8
Meeting Date: December 15, 2020
Template revised September 22, 2016.
Although the FAA and required Port contributions cannot be determined at this time, staff has
developed three possible scenarios for purposes of Commission consideration of funding and
schedule outcomes and risks:
(1) Current funding scenario: represents a plan that meets the requirements of
Commission adopted Motion 2020-04, with only current FAA grants assumed. This
scenario completes the program prior to 2027 regardless of receipt of FAA funding. For
discussion purposes, this scenario assumes all expenditures outside of the $7.5M grant
already received are made at risk of no FAA reimbursement. It is highly likely that in future
years additional grant funding will be received in addition to the current grant.
(2) $10M Scenario: is based upon receiving $10M per year in FAA funding and program
completion in 2035. Although this scenario does not comply with Commission Motion
2020-04, it is included to represent a lower-risk scenario from a funding standpoint.
(3) Scenario 3 is based upon the possibility that the program would receive $20M in FAA
funding per year. In order to maximize the amount of up-front grant funding, the schedule
would need to push out to 2030. The approximately $30 million in “additional Port costs”
represents mostly spending that could potentially be eligible for FAA reimbursement but
– to reduce delays – is being undertaken at risk.
Cone of Certainty ranges apply to total program costs but have not been applied to the
table below for simplicity.
FAA
Contribution
POS Grant
Match
Port Funded at risk
(Request FAA
reimbursement)
Current
Funding:
$7.5M
$0
$193M
$10M Per
Year Scenario:
$139M
$35M
$63M
$20M Per
Year Scenario:
$143M
$36M
$30M
*All numbers in this table are subject to the cone of certainty ranges
Table below shows range of each scenario’s program total cost:
Scenario 1
$160M - $275M
Scenario 2
$187M - $329M
Scenario 3
$165M - $289M
COMMISSION AGENDA – Briefing Item No. __10b__ Page 5 of 8
Meeting Date: December 15, 2020
Template revised September 22, 2016.
Peer Review
Staff and members of the Executive Review Panel (ERP) recently completed peer reviews with
program managers at several other airports with similar programs. Participating airports:
(1) Chicago Executive (PWK)
(2) Van Nuys (VNY)
(3) City of Inglewood (which implemented the LAX noise program within the city)
(4) San Diego (SAN)
(5) Louisville (SDF)
(6) Minneapolis (MSP)
(7) Phoenix (PHX) (conducted by staff only)
This was a learning opportunity to better understand program implementation, staffing,
contracting, challenges and costs. Key takeaways from the peer review:
(1) Consensus is that the sound insulation work can likely be done at or below the budget
ranges proposed by the Port of Seattle team.
(2) It is possible to complete this work prior to 2027.
(3) There are many benefits to consultant staff augmentation over hiring Full Time
Employees (FTEs).
(4) Most participants recommended one “over-arching” prime A&E and oversight
consultant contract with strong participation by local subconsultants.
(5) Most participants recommended conducting pre-contracting informational sessions for
consultants.
(6) Larger bid packages improve overall speed and efficiency of the program.
(7) Participants recommended conducting several General Contractor (GC) and supplier
information sessions to educate and market to potential participants.
(8) None of the peer airports had ever attempted to perform the work and then be
reimbursed by the FAA.
(9) Places of worship are the biggest constructability/schedule risk to the program.
Risks
There are several risks associated with accelerating the sound insulation program. FAA AIP grant
funding presents the greatest risk, as the timing and amount of available funding are not known.
Risks and challenges to the program:
• Obtaining subordination or consent agreements could continue to delay program
completion.
• COVID 19 risks are particularly high working in people’s homes.
• Negative MII could result in budget delays.
COMMISSION AGENDA – Briefing Item No. __10b__ Page 6 of 8
Meeting Date: December 15, 2020
Template revised September 22, 2016.
• Funding could compete with other projects.
• Budget challenges have delayed scaling the program up and hiring staff for program
management.
• Obtaining qualified sound insulation contractors can be challenging and costly.
• Product availability – specialty noise rated products aren’t widely available and often
have long lead order times.
• Not all homeowners may choose to participate.
Next Steps
The Villa Enzian condominiums are ready for construction once the subordination issue is solved.
While the subordination agreement issue is being solved, AVPMG staff are evaluating the
feasibility of performing renovations on the two Villa Enzian units that have subordination
agreements in place, along with three units that are owned outright by the homeowner and do
not require a subordination or consent agreement. This would help to advance the work but not
necessarily take advantage of the cost efficiencies and performance that a broader contracting
package would have brought.
Two construction contracts are currently in place to provide design services and construction
oversight on the single-family and condo scopes of work. AVPMG staff are currently in the
process of developing a scope of work for the procurement of a consultant to provide over-
arching program implementation on single-family homes, apartments and places of worship, to
include design services and construction oversight. Request for authorization to procure this
consultant contract has been brought forward in today’s meeting under a separate action. Staff
will then work to procure the contract and begin designs on apartments that qualify for the
program.
Two additional staff will be hired in Q2 2021 including one AVPMG Project Manager 5 and one
Noise Programs Sound Insulation Manager. Filling both positions is critical to accelerate the
programs.
BACKGROUND
Code of Federal Regulations (CFR) Title 14, Part 150 governs Airport Noise Compatibility Planning.
Part 150 describes the processes by which airports identify and reduce exposure of communities
to airport noise. The completion of a Part 150 study and FAA approval of the Noise Compatibility
Program qualify noise mitigation measures, including sound insulation, for federal funding.
The Port Commission established SEA’s Part 150 sound insulation program in 1985 as one of the
first voluntary airport sound insulation programs in the country. The original sound insulation
program was based on an estimate of the year 2000 noise impacts and included approximately
10,000 homes as potentially eligible.
COMMISSION AGENDA – Briefing Item No. __10b__ Page 7 of 8
Meeting Date: December 15, 2020
Template revised September 22, 2016.
Since 1985, the Port has sound insulated approximately 9,400 homes at an approximate cost of
$300 million. The Port also has provided funding to help sound insulate noise impacted schools
at an approximate cost to date of $61 million. The Port also acquired and relocated residents
from approximately 1,828 homes for noise and 3
rd
runway construction at an approximate cost
of $100 million.
In 2014, the FAA approved the most recent Part 150 update, which was a culmination of several
years of land use studies and public involvement. The Part 150 evaluated the noise impacts on
the community and concluded that the contours showing average cumulative noise levels had
decreased from previous years, based primarily on the utilization of predominantly newer,
quieter aircraft within the fleet mix. Due to the reduction in noise, the FAA required that SEA
redraw its noise remedy boundary to reflect the smaller noise footprint.
The current noise remedy boundary encompasses approximately 3,771 residential units
(including apartments, condominiums, and single-family homes) of which approximately 1,298
residential units have not been sound insulated by the Port. For the remaining 1,298 residential
units, Port staff and consultants evaluated additional criteria including the date built and
structure type. Based on that evaluation, approximately 1,176 residential units are potentially
eligible.
ADDITIONAL BACKGROUND
In general, the Airlines are supportive of airport noise remediation projects, however, airlines
have expressed concern about the accelerated noise program, as it appears to be spending
airport revenue on projects at a rate that could make it more challenging to get full FAA grants
at the typical 80% level. Based on the information the airlines have received to date, in a worst-
case scenario with no additional FAA funding, it appears that the airlines could be responsible for
as much as $45M per year over the course of the program. The airlines have requested additional
information and justification for this program.
ATTACHMENTS TO THIS BRIEFING
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
February 25, 2020 – Commission briefing on sound insulation programs, acceleration and staff
recommendations. Motion 2020-04 of the Port of Seattle Commission directing the acceleration
of the sound insulation program at SEA
July 10, 2018 – The Commission authorized contracting for Sound Insulation Architect and Project
Oversight Consulting for Condominiums
COMMISSION AGENDA – Briefing Item No. __10b__ Page 8 of 8
Meeting Date: December 15, 2020
Template revised September 22, 2016.
October 11, 2016 – The Commission authorized contracting for Sound Insulation Architect and
Project Oversight Consulting Services and Job Order Contracting (JOC) for Single-Family Homes
October 22, 2013 – Second Reading and Final Passage of Resolution No. 3683 concluding the
Federal Aviation Regulation (FAR) Part 150 Noise and Land Use Compatibility Study Update for
Seattle-Tacoma International Airport.
October 8, 2013 – First Reading of Resolution No. 3683 concluding the Federal Aviation
Regulation (FAR) Part 150 Noise and Land Use Compatibility Study Update for Seattle-Tacoma
International Airport.
April 23, 2013 – The Commission authorized contracting for Sound Insulation Consulting Services
and Job Order Contracting (JOC) for Single-Family Homes.