Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8b
ACTION ITEM
Date of Meeting
January 4, 2022
DATE: December 20, 2021
TO: Stephen P. Metruck, Executive Director
FROM: Eileen Francisco, Interim Director, Aviation Facilities and Capital Programs
Wayne Grotheer, Director, Aviation Project Management
SUBJECT: Concourse and Parking Garage Low Voltage Upgrades (CIP# C801280 & C800901) –
Design
Amount of this request:
$11,200,000
Total estimated project cost:
$40,894,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) complete design, (2)
advertise and execute up to two professional services contracts for design services for the
Concourse Low Voltage Upgrade project (CIP C801280) and the Parking Garage Low Voltage
Upgrade project (CIP C800901), (3) advertise and execute a General Contractor, Construction
Manager (GCCM) construction contract and authorize pre-construction services for CIP C801280,
(4) issue a job order contract (JOC) to carry out pre-construction services for CIP 800901, and (5)
use Port of Seattle crews for pre-construction activities for CIPs C801280 and C800901.
The amount of this request is $11,200,000. The total estimated cost for both projects is
$40,894,000.
Project
Amount of this request
Total estimated project
cost
CIP C801280
Concourse Low Voltage Upgrades
$7,200,000 $28,350,000
CIP C800901
Parking Garage Low Voltage Upgrades
$4,000,000 $12,544,000
Total
$11,200,000
$40,894,000
EXECUTIVE SUMMARY
Many of the existing power distribution panels in Concourses B, C, D, and the parking garage at
the Seattle-Tacoma International Airport (STIA) have been in service for over 30 years and have
exceeded their serviceable life expectancy. In many cases, the equipment includes parts which
are no longer available from the manufacturer or are no longer maintained as spare parts by the
COMMISSION AGENDA – Action Item No. __8b__ Page 2 of 7
Meeting Date: January 4, 2022
Template revised June 27, 2019 (Diversity in Contracting).
Port of Seattle’s electrical shop. Some equipment also require modification to comply with
current codes and standards.
These projects will renew and/or replace existing normal and emergency low voltage electrical
distribution equipment within Concourses B, C, and D and the parking garage at STIA.
This request will authorize design and pre-construction funds for both projects.
JUSTIFICATION
Due to the age and conditions of some electrical equipment in use throughout STIA, risk of failure
is moderate to high. A failure of electrical equipment can result in power outages in key areas of
STIA with downstream users such as tenants and travelers being significantly affected for
extended periods of time. As part of the planning phase of these projects, all existing electrical
equipment was surveyed and panels with the highest risk of failure and resulting operational
impact were identified as needing replacement.
Many of the current electrical rooms are cramped and do not have space for new panels or
conduit, and some of the existing panels have clearance issues which impact maintenance access.
As a result, this project must install new electrical rooms and closets to support future electrical
power needs at STIA.
Existing panels are not consistently metered and labeled, particularly for older equipment. This
project will implement metering for all replaced panels, which will provide opportunities for
future energy conservation projects.
C800901 will be implemented in the parking garage and will mostly address lighting panels, many
of which can be replaced during daylight hours. C801280 will be implemented in the concourses,
which represents additional challenges with mitigation of operational impacts, night outages,
and panel relocations. Other than these differences, CIPs C801280 and C800901 will address the
same equipment issues and will include similar design scope. Due to the similarities in the mission
and scope of these projects, implementation with a consistent approach will result in more
efficient procurement, design, and overall project management. As such, projects C801280 and
C800901 are being presented together for this Commission request.
The requested authorization will initiate design activities for both projects and begin pre-
construction activities such as circuit tracing and outage planning to support the design effort.
Diversity in Contracting
The Port of Seattle’s Diversity in Contracting Department performed a Women & Minority
Business Enterprises (WMBE) availability analysis during the Notebook phase of these projects.
Per this evaluation, an aspirational goal of 13% WMBE participation was determined for the
design procurement of both projects (C801280 and C800901), and an aspirational goal of 10%
WMBE participation was determined for the procurement of a GCCM for CIP C801280.
COMMISSION AGENDA – Action Item No. __8b__ Page 3 of 7
Meeting Date: January 4, 2022
Template revised June 27, 2019 (Diversity in Contracting).
DETAILS
Scope of Work
These projects will cover the renewal and replacement of end-of-life low voltage electrical
equipment within Concourses B, C, and D and the parking garage at STIA. Replacement will
include but is not limited to panelboards, motor control centers, switchboards, feeders, meters,
and transformers. The work will be carried out in a manner that minimizes disruptions to normal
airport operations.
CIPs were developed separately for Concourses B, C, and D over time. These 3 CIPs represented
the same technical scope in different areas. During the Notebook development process, it was
determined that combining this scope into a single project would improve efficiency, reduce
project risks, mitigate operational impacts, and improve design consistency. The Investment
Committee approved of CIPs C800902, C800905, and C801046 being combined into new CIP
C801280. The parking garage scope (C800901) will remain a standalone project.
The current budget estimate for C800901 has increased by $9,276,572 since the original Status 2
plan of finance estimate. This increase is due to the number of panels needing replacement, the
need for relocating panels and building new electrical rooms, measures to reduce operational
impacts, etc. Note that the recommended scope alternative (Alternative 3) prioritizes the
equipment with highest risk and significantly reduces project costs from the initial field survey
recommendations (Alternative 2). The Main Terminal Low Voltage System Upgrade project (CIP
C800061) – a similar ongoing project – provides further basis for the increased budget.
The design phase will include the following scope items:
(1) Renew and/or replace existing normal and emergency low voltage (480/277V and
208/120V) electrical distribution equipment within Concourses B, C, and D and the
parking garage at STIA. Panels have been prioritized for replacement based on condition
and highest risk of operational impact; less than 30% of the panels in each area have
been selected for replacement.
(2) Create new electrical closets for relocated equipment as needed in each area.
(3) Create a new electrical room in Concourse D to support future power demands.
(4) Implement metering for all new equipment, whether as branch metering or directly on
the new panel.
(5) Renew and/or replace mechanical equipment (HVAC, fire protection systems, etc.)
where necessary to support new electrical equipment.
COMMISSION AGENDA – Action Item No. __8b__ Page 4 of 7
Meeting Date: January 4, 2022
Template revised June 27, 2019 (Diversity in Contracting).
Schedule
Activity
Project
Concourses
(C801280)
Parking Garage
(C800901)
Design start
2022 Quarter 3
2022 Quarter 3
Commission construction authorization
2024 Quarter 1
2023 Quarter 3
Construction start
2024 Quarter 1
2024 Quarter 1
In-use date
2025 Quarter 3
2025 Quarter 1
Cost Breakdown
This Request
Total Project
Concourse Low Voltage (C801280)
Design
$5,800,000
$6,345,000
Pre-Construction
$1,400,000
$1,400,000
Construction
$0
$20,605,000
Total
$7,200,000
$28,350,000
Parking Garage Low Voltage (C800901)
Design
$3,600,000
$3,800,000
Pre-Construction
$400,000
$400,000
Construction
$0
$8,344,000
Total
$4,000,000
$12,544,000
Concourses + Parking Garage (Combined)
Design
$9,400,000
$10,145,000
Pre-Construction
$1,800,000
$1,800,000
Construction
$0
$28,949,000
Total
$11,200,000
$40,894,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Leave as is.
Cost Implications: $500,000 (Roughly $500,000 in planning funds spent to date from the four
initial CIPs would be expensed if projects do not move forward)
Pros:
(1) No capital costs currently.
Cons:
(1) High risk of panel failures, resulting in outages and significant operational impacts.
(2) Added costs to small capital and tenant projects replacing panels on an as-needed basis.
(3) Systems will eventually need to be replaced, either by failure or preventative measures.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. __8b__ Page 5 of 7
Meeting Date: January 4, 2022
Template revised June 27, 2019 (Diversity in Contracting).
Alternative 2 – Replace All Outdated Equipment.
Cost Implications: $87,629,000
Pros:
(1) All components originally recommended for replacement will be updated, lowering risk
of failure.
(2) All equipment upgraded at once, rather than on an “as needed” basis to minimize
operational impacts.
Cons:
(1) Panels will be replaced prior to end of life.
(2) Highest cost: $67M greater than total Status 2 estimates.
This is not the recommended alternative.
Alternative 3 – Prioritize High-Risk Equipment
Cost Implications: $40,894,000
Pros:
(1) Equipment in poor condition or at high risk of failure prioritized for replacement.
(2) Cost: Short-term savings of $47M versus Alternative 2.
(3) Utilize full useful life from existing panels.
Cons:
(1) Increased risk of failures over next 10 years versus Alternative 2.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
C801280 - Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Plan of Finance Estimate
$28,350,000
$0
$28,350,000
AUTHORIZATION
Previous authorizations*
$545,000
$0
$545,000
Current request for authorization
$7,200,000
$0
$7,200,000
Total authorizations, including this request
$7,745,000
$0
$7,745,000
Remaining amount to be authorized
$20,605,000
$0
$20,605,000
*Note: Authorized amounts shown are summed from the planning funds which were authorized
separately for CIPs C800902 (Concourse B - $200,000), C800905 (Concourse C - $200,000), and
C801046 (Concourse D - $145,000).
COMMISSION AGENDA – Action Item No. __8b__ Page 6 of 7
Meeting Date: January 4, 2022
Template revised June 27, 2019 (Diversity in Contracting).
C800901 - Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Plan of Finance Estimate
$3,267,428
$0
$3,267,428
Current change
$9,276,572
$0
$9,276,572
Revised estimate
$12,544,000
$0
$12,544,000
AUTHORIZATION
Previous authorizations
$200,000
$0
$200,000
Current request for authorization
$4,000,000
$0
$4,000,000
Total authorizations, including this request
$4,200,000
$0
$4,200,000
Remaining amount to be authorized
$8,344,000
$0
$8,344,000
Annual Budget Status and Source of Funds
The project, CIP C801280, was included in the 2022-2026 capital budget and plan of finance with
a budget of $28,350,000. The budgets and authorizations from CIPs C800902 Concourse B Low
Voltage Upgrade, C800905 Concourse C Low Voltage Upgrade, and C801046 Concourse D Low
Voltage Upgrade were transferred to this new CIP C801280. This project would submit to the
airlines for Majority-In-Interest approval after design has been completed in 2023.
The project, C800901 Parking Garage Low Voltage Upgrade was included in the 2022-2026 capital
budget and plan of finance with a budget of $12,544,000.
Both projects funding sources will include the Airport Development Fund and future revenue
bonds.
Financial Analysis and Summary
C801280 Concourse Low Voltage
Project cost for analysis
$28,350,000
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
$.07 in 2026
C800901 Parking Garage Low Voltage
Project cost for analysis
$12,544,000
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. __8b__ Page 7 of 7
Meeting Date: January 4, 2022
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 power available and
operational availability of the affected systems. Renovation will support expansion of the ADR
program which generates revenue. The new major assets will include electrical panels and
miscellaneous electrical / mechanical equipment. New electrical equipment will generally have a
useful lifespan of thirty years.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None
