Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8h
ACTION ITEM
Date of Meeting
April 12, 2022
DATE: March 21, 2022
TO: Stephen P. Metruck, Executive Director
FROM: Eileen Francisco, Interim Director, Aviation Facilities and Capital Programs
Wayne Grotheer, Director, Aviation Project Management
SUBJECT: Airport Terminal Solid Waste Project (CIP #800945)
Amount of this request:
$10,576,000
Total estimated project cost:
$12,576,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to: (1) increase the project budget
for the Airport Terminal Solid Waste project in the amount of $6,176,000; (2) advertise and
award a major public works contract for the Airport’s Terminal Solid Waste Project; and (3) use
Port crews and small works contracts for construction support. The total estimated cost of this
project is $12,576,000.
EXECUTIVE SUMMARY
Solid Waste throughput and capacity are essential for Airport operations, passenger comfort,
worker safety, and overall sanitation. The current solid waste infrastructure is at capacity and
needs to be expanded to meet future demands.
This request is for project construction authorization to build an additional 2,400 square feet
representing a 250 percent increase in dedicated refuse collection space and associated utilities
at the North and South Ramp areas of the Central Terminal. In addition, the project will install
sanitation stations at waste collection areas across the Airport to address regulatory findings.
This project directly supports the Airport’s Environmental Landfill Diversion Strategy.
The original project budget set before the start of project design was $6,400,000. The new
budget estimate is $12,576,000, an increase of $6,176,000. This budget increase includes
material cost increases (primarily steel and concrete), changes in the building code,
unprecedented escalation, required structural and utility upgrades, and associated soft costs
necessary to accommodate the project.
COMMISSION AGENDA – Action Item No. 8h Page 2 of 5
Meeting Date: April 12, 2022
Template revised June 27, 2019 (Diversity in Contracting).
JUSTIFICATION
This action ensures adequate solid waste infrastructure is in place to meet operational,
passenger comfort, pest control and worker safety needs. Solid waste generation is directly
proportional to the number of passengers utilizing the Airport and the Airport’s Dining and
Retail services. Pre-pandemic terminal solid waste generation (2010 to 2019) grew by 45
percent from 5,500 to 8,000 tons annually. The current facilities are at capacity and require
attention. The project requirements are based on the Airport’s Solid Waste Management Plan
and the 2016 Solid Waste Growth Forecast and Capacity Study.
The Central Terminal core solid waste refuse collection and processing areas were constructed
in 2003. The space provided two-stream operations for garbage and recycling only. Composting
operations began in 2006 and are handled by movable bins. The limited space in the current
facility limits the ability for operational solutions to manage solid waste levels, which results in
overflow of solid waste and unsanitary conditions. Overflowing waste is often blown onto the
ramp creating foreign object debris, a serious safety hazard to aircraft engines. Additionally,
when solid waste compactors are full tenants are more likely to incorrectly throw waste in
other containers, contaminating them and eliminating their ability to be properly recycled. This
project will build the required additional space and infrastructure to meet future demands for
solid waste, including recycling and composting, while remaining compliant with federal code
and sanitation guidelines.
This project directly supports the Port’s Century Agenda goal to be the greenest and most
energy efficient Port in North America by expanding compost and recycling capacity, which
enables the airport to meet its solid waste diversion goals. Diverting waste from the Cedar Hills
Regional landfill reduces greenhouse gas emissions and reduces airport costs to dispose of solid
waste. Expanding solid waste capacity through system changes and expanded capacity
containers reduces the total number of vehicle trips required from the Airport to Solid Waste
processing facilities which reduces vehicular traffic and the Port’s overall carbon footprint.
Diversity in Contracting
The Women and Minority Business Enterprise (WMBE) construction goal is set at 12%. The
Design Consultant WMBE commitment is 20% and is achieving a participation rate of 33%.
DETAILS
The Terminal Solid Waste Project is essential work to right-size the facility infrastructure to
accommodate the growth in the Airport and subsequent increase in solid waste volumes. The
project accommodates passenger and terminal growth through 2036, aligns with Century
Agenda and Environmental diversion goals and satisfies numerous regulatory requirements.
COMMISSION AGENDA – Action Item No. 8h Page 3 of 5
Meeting Date: April 12, 2022
Template revised June 27, 2019 (Diversity in Contracting).
Scope of Work
The Terminal Solid Waste project will construct 2,400 square feet of dedicated refuse collection
space and associated utilities at the North and South Ramp areas of the Central Terminal. The
project will install sanitation stations at waste collection areas across the Airport and make
repairs to the current Central Terminal collection areas to improve drainage, general sanitation,
and worker safety.
Schedule
The initial design strategy for this project was to utilize an existing Indefinite Delivery Indefinite
Quantity (IDIQ) professional services contract. Due to the complex nature of the project’s
multiple locations and timeline requirements, design fee proposals from several existing on-call
design consultants exceeded expected costs and the limits of the IDIQ contract’s available
capacity. The project returned to Commission in April 2020 for authority to procure a project
specific contract. That action was expected to take 9 months. Further refinements to the
schedule added an additional 3 months and included coordination with adjacent projects on
timing of work and extensive phasing plans to mitigate construction impacts of the project.
Activity
Construction start
In-use date
Cost Breakdown
This Request
Total Project
Design
$0
Construction
$10,576,000
Total
$10,576,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Construct Central Terminal North refuse area only at cost of $6,000,000. This
alternative provides for a 1600 square foot purpose-built facility to dispose of refuse from the
CT North and Concourses C & D. Additional sanitation stations are not included in this option.
Cost Implications: $6,000,000
Pros:
(1) Design within current budget.
(2) No major gate impacts.
(3) Construction can start as early as Fall 2022.
COMMISSION AGENDA – Action Item No. 8h Page 4 of 5
Meeting Date: April 12, 2022
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) Does not meet the forecasted waste stream need of the South-Central Terminal or
Concourses A and B.
(2) Sanitary concerns and regulatory compliance issues with the Food and Drug
Administration.
This is not the recommended alternative.
Alternative 2 – Fully fund the current requirement.
Cost Implications: $12,576,000
Pros:
(1) Provides capacity to meet the projected 15-year Solid Waste volumes; provides
overflow capacity/flexibility to mitigate increased peak volumes, missed waste
pickups, daily haul downtime and equipment breakdowns.
(2) Allows Airport to meet environmental sustainability waste diversion goal through
increased recycling and composting throughput capability.
(3) Improves Airport refuse area sanitation conditions.
Cons:
(1) Most expensive option.
(2) Requires Gate B1 to be closed for approximately 7 ½ months.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$6,200,000
$200,000
$6,400,000
Current change
$6,176,000
$0
$6,176,000
Revised estimate
$12,376,000
$200,000
$12,576,000
AUTHORIZATION
Previous authorizations
$1,950,000
$50,000
$2,000,000
Current request for authorization
$10,426,000
$150,000
$10,576,000
Total authorizations, including this request
$12,376,000
$200,000
$12,576,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project, CIP C800945, was included in the 2022-2026 capital budget and plan of finance
with a budget of $6,200,000. A budget increase of $6,176,000 was transferred from the
Aeronautical Reserve CIP (C800753) resulting in zero net change to the Aviation capital budget.
COMMISSION AGENDA – Action Item No. 8h Page 5 of 5
Meeting Date: April 12, 2022
Template revised June 27, 2019 (Diversity in Contracting).
The $200,000 of expense is to cover required tenant equipment relocation and be in the
operating budget. The funding source will be the Airport Development Fund (ADF) and future
revenue bonds.
Financial Analysis and Summary
Project cost for analysis
$12,376,000
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
$.03 in 2025
Future Revenues and Expenses (Total cost of ownership)
The recommended solution is expected to yield a 10-year cost avoidance of $9,600,000 to the
solid waste program. Avoidance is based on reduced tipping fees and costs to mitigate waste
overages. Additional compactor equipment operations and maintenance costs will be $45,000
annually.
ATTACHMENTS TO THIS REQUEST
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
April 14, 2020 – The Commission authorized the Executive Director to advertise and execute
a project specific design contract. Staff anticipated a project cost increase.
October 8, 2019 – The Commission authorized the Executive Director to design and prepare
construction documents for Terminals Solid Waste Project. At that time the total
estimated project cost was $6,400,000.