Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8h
ACTION ITEM
Date of Meeting
January 25, 2022
DATE: January 14, 2022
TO: Stephen P. Metruck, Executive Director
FROM: Laurel Dunphy, Director, Airport Operations
Wayne Grotheer, Director, Aviation Project Management
SUBJECT: North Employee Parking Lot Improvements (C800957)
Amount of this request:
$1,061,000
Total estimated project cost:
$17,488,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) authorize an additional
amount of $843,000 for the design and construction of Phase I and (2) authorize an additional
amount of $218,000 for the design of Phase II of the North Employee Parking Lot (NEPL)
Improvements project at Seattle-Tacoma International Airport. This authorization request is in
the amount of $1,061,000, for a total authorization in the amount of $6,045,000.
EXECUTIVE SUMMARY
The NEPL Improvements project includes two phases of work. Phase I remodels the three bus
shelter buildings, replaces an entrance gate, and provides other minor site improvements. Phase
II includes pavement restoration and the replacement of failing infrastructure and a rockery
retaining wall.
In October 2021, the electrical feeders to Shelter 1 failed and the facility is currently on temporary
power provided by a generator. The remaining electrical feeders in NEPL were tested and were
found to be at the end of their useful life and at risk of failure in the short-term. Therefore,
replacement of all electrical feeders is now included in the project resulting in an overall cost
increase of $2,104,000. Phase I would replace the failed electrical feeders to Shelter 1, and Phase
II would replace the remaining electrical feeders.
JUSTIFICATION
This project supports the Century Agenda goals to advance this region as a leading tourism
destination and business gateway and to be the greenest and most energy-efficient port in North
America. The NEPL was placed into service in August 1998 and provides employee parking for
Airport tenants, service providers, and airline employees. After 23 years of use, the NEPL requires
COMMISSION AGENDA – Action Item No. _8h_ Page 2 of 5
Meeting Date: January 25, 2022
Template revised June 27, 2019 (Diversity in Contracting).
improvements to ensure the continued use of this facility, as well as improve environmental
compliance, and increase customer satisfaction. The project will also expand electric vehicle
parking as allowed by current infrastructure and assess further expansion.
Diversity in Contracting
The design contract for Phase I includes an aspirational goal of seven percent for women and
minority business enterprises (WMBE) participation. The design contract for Phase II includes an
aspirational goal of ten percent for WMBE participation. The project team is working with the
Diversity in Contracting Department to determine participation opportunities and will set
appropriate aspirational goals for WMBE participation for the construction contracts.
DETAILS
The NEPL provides 4,122 employee parking spaces for Airport tenants, service providers, and
airline employees. A total of 11,170 monthly parking permits have been issued for the use of this
facility out of an available 12,000 monthly parking permits. Airport Operations provides a 24/7
transit connection to the Main Terminal that currently operates on a ten-minute headway. There
are three Bus Shelter buildings in NEPL, each approximately 2,000 square-feet in size, that
provide a waiting area and restrooms in support of the transit operations.
The Commission authorized design and construction of Phase I of the project on October 9, 2018,
and authorized additional funds on June 8,
2021, due to the deferral of the project in 2020 and
code related cost increases. Phase I of the project includes a minor remodel of all three bus
shelters, including restroom upgrades compliant with the current Americans with Disabilities Act
requirements, and will establish a permanent space in Shelter 1 to support transit operations
which will include the installation of Wi-Fi. Phase I also updates the entry sign, replaces a failed
bus gate, and expands the available electric vehicle (EV) parking from 12 existing stalls to 14 stalls.
This past October, the feeders providing electrical power to Shelter 1 failed, and the shelter is
currently being powered by a rented generator. This request would replace those failed electrical
feeders and restore permanent power to Shelter 1.
The Commission authorized the design of Phase II of the project on June 8, 2021. The
authorization also included some early pavement work that was completed in late summer.
Phase II will replace the failing asphalt concrete pavement along the bus pathway and repair
limited identified areas of pavement distress. The parking lot will be seal coated to extend the
useful life of the pavement in the parking areas. In addition, the project will replace failing storm
water channel drains, a water line, and a rockery retaining wall. Phase II will also assess the
overall requirements and capabilities to support the expansion of the EV charging infrastructure
as part of the schematic design effort. This past October, Aviation Maintenance tested the
electrical feeders to Shelters 2 and 3, and to the Guard Building, and determined that these
feeders are at the end of their useful life and at risk of failure in the short-term. This request
includes replacing these electrical feeders to provide a long-term solution for power to those
COMMISSION AGENDA – Action Item No. _8h_ Page 3 of 5
Meeting Date: January 25, 2022
Template revised June 27, 2019 (Diversity in Contracting).
facilities. As part of the EV parking assessment the electrical feeders will be evaluated to
determine if they need to be upsized to support additional EV parking.
Scope of Work
The scope of work for Phase I of the project includes the following: a minor remodel of all three
bus shelters including the restrooms and waiting areas, a permanent operational space in Shelter
1 to support transit operations that includes the installation of Wi-Fi, replacement of the failed
electrical feeders to Shelter 1, updates to the entry sign, replacement of a failed bus gate, and a
minor expansion of EV parking.
The scope of work for Phase II of the project includes the following: replacement of failing and
distressed pavement along the bus pathway, resealing the parking areas, replacement of the
failing rockery retaining wall, and replacement of failing infrastructure including storm water
channel drains, a water line, and the electrical feeders to Shelters 2 and 3 and the Guard Building.
Should a decision be reached during schematic design to expand the EV charging infrastructure
the scope of work for Phase II would increase.
Schedule
Phase I Construction start
Phase I In-use date
Phase II Design start
Phase II Commission construction authorization
Phase II In-use date
Cost Breakdown
This Request
Total Project
Phase I Design
$162,000
$487,000
Phase I Construction
$681,000
$1,935,000
Total Phase I
$843,000
$2,422,000
Phase II Design
$218,000
$2,565,000
Phase II Construction
$0
$12,501,000
Total Phase II
$218,000
$15,066,000
Total Project Cost
$1,061,000
$17,488,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Defer full scope to future projects or no action
Cost Implications: $0
Pros:
(1) No additional capital investment
COMMISSION AGENDA – Action Item No. _8h_ Page 4 of 5
Meeting Date: January 25, 2022
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) Shelter 1 would need to be permanently shut-down impacting operations and customer
service
(2) Shelters 2 and 3, and the Guard Building, may lose power in the short-term severely
limiting the utilization of the employee parking facility
This is not the recommended alternative.
Alternative 2 – Replace only failed electrical feeders to Shelter 1 only
Cost Implications: $843,000
Pros:
(1) Lower overall capital investment
(2) Quickest path to restore power to Shelter 1 supporting operations and customer service
goals
Cons:
(1) Shelters 2 and 3, and the Guard Building, may lose power in the short-term severely
limiting the utilization of the employee parking facility
This is not the recommended alternative.
Alternative 3 – Replace all electrical feeders to Shelters and Guard Building
Cost Implications: $2,104,000
Pros:
(1) Provides a long-term solution
(2) Quickest path to restore power to Shelter 1 supporting operations and customer service
goals
(3) Phased implementation supporting potential change to increase power due to EV
charging requirements
Cons:
(1) Higher overall capital investment
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$6,635,000
$0
$6,635,000
Previous changes
$8,676,000
$73,000
$8,749,000
Current change
$2,104,000
$0
$2,104,000
Revised estimate
$17,415,000
$73,000
$17,488,000
COMMISSION AGENDA – Action Item No. _8h_ Page 5 of 5
Meeting Date: January 25, 2022
Template revised June 27, 2019 (Diversity in Contracting).
AUTHORIZATION
Previous authorizations
$4,984,000
$0
$4,984,000
Current request for authorization
$1,061,000
$0
$1,061,000
Total authorizations, including this request
$6,045,000
$0
$6,045,000
Remaining amount to be authorized
$11,370,000
$73,000
$11,443,000
Annual Budget Status and Source of Funds
This project, CIP C800957, was included in the 2022-2026 capital budget and plan of finance with
a total budget of $15,311,000. A budget increase of $2,104,000 was transferred from the Non-
Aeronautical Reserve CIP (C800754) resulting in zero net change to the Aviation capital budget.
The funding source will be the Airport Development Fund (ADF) and revenue bonds. The
incremental impact to Employee Parking Card rate between $0.10 to $11.54 in 2022-2024
Financial Analysis and Summary
Project cost for analysis
$17,488,000
Business Unit (BU)
Employee Parking
Effect on business performance
(NOI after depreciation)
Incremental employee parking card rate will increase by
$11.54 by 2024. NOI after depreciation will increase as
capital costs are included in cost recovery rate base.
IRR/NPV (if relevant)
N/A
CPE Impact
N/A
Future Revenues and Expenses (Total cost of ownership)
This project will reduce long-term operating and maintenance costs for the facility by replacing
failing infrastructure.
ATTACHMENTS TO THIS REQUEST
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
June 8, 2021 – The Commission authorized 1) additional funds for the design and construction of
Phase I, 2) completion of design and the utilization of Port crews and a small works contract to
complete early pavement work, and 3) additional funds for the design of Phase II of the NEPL
Improvements project.
October 9, 2018 – The Commission authorized design and construction of Phase I of the NEPL
Improvements project.