Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8d
ACTION ITEM
Date of Meeting
May 10, 2022
DATE: April 28, 2022
TO: Stephen P. Metruck, Executive Director
FROM: Wayne Grotheer, Director Aviation Project Management Group
Laurel Dunphy, Director Airport Operations
SUBJECT: Concourse N Arc Flash Mitigation (C800556)
Amount of this request:
$0
Total estimated project cost:
$1,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) Use Port of Seattle crews, as
well as small and major works on-call contracts to perform the construction work and (2)
advertise and execute a major on-call construction contract for hazard mitigation in the south
power center of Concourse N.
EXECUTIVE SUMMARY
A final short circuit coordination study performed as part of the North Satellite Modernization
project identified that the configuration of the existing south power center at Concourse N
resulted in arc flash incident energy levels over acceptable requirements. To complete the North
Satellite Modernization project objectives for staff to maintain the campus electrical systems at
the airport in a consistent manner airport wide, new equipment with updated protection and
monitoring is required to be installed. This work is being completed as part of the original North
Satellite Modernization project at Concourse N.
JUSTIFICATION
This request is being made to provide authority to advertise and execute a major works on-call
specific construction contract for Port Construction Services (PCS). This approval will allow the
quick execution of arc flash mitigation efforts to alleviate the safety concerns at the Concourse
N power center. The North Satellite Modernization project has previously authorized funding in
the amount of $1M to support the project. This request is intended to provide authority to
advertise and execute the contract.
COMMISSION AGENDA – Action Item No. __8d__ Page 2 of 8
Meeting Date: May 10, 2022
Template revised June 27, 2019 (Diversity in Contracting).
Diversity in Contracting
Project staff has engaged with the Diversity in Contracting Department and have established that
there are Women and Minority Owned Business Enterprises (WMBE) firms that are capable of
completing this work as a prime and are pursuing outreach efforts to publicize this upcoming
opportunity.
DETAILS
The final short circuit coordination study identified that the existing south main power center
resulted in arc flash incident energy levels over the specified levels required by the North Satellite
Modernization project. Aviation Maintenance and Facilities and Infrastructure reviewed the
study, and in concurrence with the project team identified that the arc flash can be reduced by
installing new enhanced breakers and updated monitoring equipment.
The mitigation allows for shutting down portions of the concourse power system consistently
without powering off the entire concourse for maintenance, tenant connections, or changes to
infrastructure in the future life of the facility.
This follow-on work is being completed as part of the original North Satellite Modernization
project at Concourse N. Completing this work in this way results in contract cost and schedule
savings by leveraging the remaining budget authorization and design work already completed.
Scope of Work
The project would supply and install the following equipment and monitoring system for arc flash
mitigation at the south main power center in the concourse:
(1) Two (2) new appropriately rated arc flash circuit breakers.
(2) Modifications to the switchgear to accept the 2 new circuit breakers.
(3) Two (2) circuit breaker relays for primary breaker protection.
(4) Two (2) control power transformers.
(5) Two (2) sets of 3 current transformers for power monitoring.
(6) Perform commissioning of the switchgear to validate the arc flash incident levels desired
are achieved.
Schedule
The North Satellite Modernization project opened the completed Concourse N on schedule in
the summer of 2021. The project construction contractor demobilized from the project in the
fourth quarter of 2021. This request will enable execution of a new Major Works PCS on-call
specific construction contract to perform the switchgear modifications within the 2022 calendar
year.
COMMISSION AGENDA – Action Item No. __8d__ Page 3 of 8
Meeting Date: May 10, 2022
Template revised June 27, 2019 (Diversity in Contracting).
Activity
Commission design authorization
Design start
Commission construction authorization
Construction start
In-use date
Cost Breakdown
This Request
Total Project
Design
$0
$377,900
Construction
$0
$622,100
Total
$0
$1,000,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Defer mitigation to a future date
Cost Implications: Likely cost of mitigation will be greater than currently estimated $1M. The
project that completed Concourse N possesses authorization to design, advertise, and deliver
project and construction management services in 2022. Therefore, it will be most cost effective
to use the current, contracted design team.
Pros:
(1) None.
Cons:
(1) Power for the entire concourse would need to be shut off to complete routine
maintenance, causing many gate outages for the Airport.
(2) Additional authorization as well as time and resources will be required to design and
advertise this scope of work.
This is not the recommended alternative.
Alternative 2 – Do not complete this scope
Cost Implications: $1M saved
Pros:
(1) Save funding and resources for use addressing other airport priorities.
Cons:
(1) Power for the entire concourse would need to be shut off to complete routing
maintenance, causing many gate outages for the Airport.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. __8d__ Page 4 of 8
Meeting Date: May 10, 2022
Template revised June 27, 2019 (Diversity in Contracting).
Alternative 3 – Mitigate the arc flash risk at Concourse N south main power center.
Cost Implications: $1M
Pros:
(1) Allows for maintenance to service the south main power center.
(2) Double ended switchgear design intent is realized eliminating gate outage impact for
service maintenance.
Cons:
(1) None
This is the recommended alternative.
FINANCIAL IMPLICATIONS
No additional project funding is required to complete this scope and less savings will be returned.
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Previous changes – net
$679,916,127
$20,209,105
$700,125,232
Current change
$0
$0
$0
Revised estimate
$679,916,127
$20,209,105
$700,125,232
AUTHORIZATION
Previous authorizations
$691,916,127
$20,209,105
$712,125,232
Current request for authorization
$0
$0
$0
Total authorizations, including this request
$691,916,127
$20,209,105
$712,125,232
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project is included in the 2022-2026 capital budget and plan of finance with a budget of
$691.9 million. The budget decrease of $12 million was returned to the Aeronautical Allowance
CIP 800753. The funding sources include the Airport Development Fund, revenue bonds and
Passenger Facility Charge revenue (PFCs).
COMMISSION AGENDA – Action Item No. __8d__ Page 5 of 8
Meeting Date: May 10, 2022
Template revised June 27, 2019 (Diversity in Contracting).
Financial Analysis and Summary
Project cost for analysis
$700,125,232
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.
Increasing use of PFCs reduces Port revenue as capital
costs are excluded from airline rate base.
IRR/NPV (if relevant)
N/A
CPE Impact
$0.86-$1.48 depending on amounts of PFCs applied to
ongoing revenue bond debt service
The funding plan includes approximately $126 million of PFCs to fund construction costs. Capital
costs funded with PFCs are excluded from the airline rate base and therefore do not impact
passenger airline cost per enplaned passenger (CPE). The funding plan also includes the use of
PFCs to pay some level of ongoing PFC-eligible revenue bonds debt service. Debt service paid by
PFCs is also excluded from the airline rate base.
ATTACHMENTS TO THIS REQUEST
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
North Sea-Tac Airport Renovations (NorthSTAR) (CIP #C800544)
April 26, 2022 - Request Commission authorization for the Executive Director to execute a
major public works construction contract to provide full functional wide body aircraft
capacity at the Concourse N gate N16. This construction contract will provide flexibility
to accommodate a wider array of aircraft to support wide body gate service.
May 14, 2019 – NorthSTAR Program status update
February 26, 2019 – NorthSTAR Program status update
November 13, 2018 – NorthSTAR Program status update
July 31, 2018 – NorthSTAR Program status update
May 22, 2018 – NorthSTAR Program status update
Jan 30, 2018 – NorthSTAR Program status update
Oct 24, 2017 – NorthSTAR Program status update
July 25, 2017 – NorthSTAR Program status update
April 25, 2017 – NorthSTAR Program status update
January 24, 2017 – NorthSTAR Program status update
September 13, 2016 – Request Commission authorization for the Chief Executive Officer to
(1) increase the North Satellite Renovation & North Satellite Transit Station Lobbies
(NSAT) project scope and budget; (2) increase authorization for project design; (3) amend
design service agreement with URS that exceeds 50% of the value of the original contract;
and (4) increase authorization for Preliminary Work Package #2 (PWP #2) construction.
COMMISSION AGENDA – Action Item No. __8d__ Page 6 of 8
Meeting Date: May 10, 2022
Template revised June 27, 2019 (Diversity in Contracting).
August 9, 2016 – NorthSTAR Program Status Update
May 24, 2016 – Commission authorized Chief Executive Officer to 1) increase the North
Satellite project scope and budget; 2) increase authorization for NSAT design and overall
project support; 3) amend service agreements with Jacobs Project Management
Company and AECOM; and 4) authorize the use of port crews and small works contactors
to perform work for the project.
February 23, 2016 – NorthSTAR Program status update
November 24, 2015 – NorthSTAR Program status update
July 14, 2015 – NorthSTAR Program status update
April 28, 2015 – NorthSTAR Program status update
January 27, 2015 – NorthSTAR Program status update
October 28, 2014 - NorthSTAR Program status update
August 19, 2014 - NorthSTAR Program status update
May 27, 2014 – NorthSTAR Program status update
January 14, 2014 – NorthSTAR Program status update
September 24, 2013 – NorthSTAR Program status update
June 25, 2013 –NorthSTAR Program status update
April 9, 2013 – The Commission authorized the Chief Executive Officer to enter into a project
labor agreement covering the NorthSTAR program’s five major construction projects.
March 26, 2013 –NorthSTAR Program status update
June 26, 2012 – The Commission received a briefing on the status of the Airline Realignment
Program and budget restructuring in association with the NorthSTAR Program.
April 10, 2012 – Authorizations for the North Sea-Tac Airport Renovations program for: 1)
preliminary project funding; 2) execution of consulting contracts for design/construction
support services and project management services; and 3) use of Port crews and
consultants to conduct regulated materials management surveys and field support
services for preliminary project planning tasks.
North Satellite Renovation & North Satellite Transit Station Lobbies (CIP #C800556)
April 26, 2022 - Request Commission authorization for the Executive Director to execute a
major public works construction contract to provide full functional wide body aircraft
capacity at the Concourse N gate N16.
March 10, 2020 – The Commission authorized
increase the North Satellite Modernization Project budget by $40,000,000 ($32 million
capital and $8 million expense) for a total project authorization of $712,125,232.
August 15, 2017 – The Commission authorized
Increase the authorized budget by $107,000,000 capital and $500,000 expense and
authorize the remaining $261,547,392 capital and $8,800,000 expense, amending the
Hensel Phelps (HP) contract by $161,563,526 for the final MACC to complete the project
in Q3 2021. Authorize execution of all pending and future change orders to the HP
contract within the authorized budget and project scope to avoid potential delays.
Authorize Port crews to support NSAT construction and authorize Port staff to enter
COMMISSION AGENDA – Action Item No. __8d__ Page 7 of 8
Meeting Date: May 10, 2022
Template revised June 27, 2019 (Diversity in Contracting).
into a TRA with AS for the reimbursement of AS and Port responsible design efforts and
improvements.
June 27, 2017 – The Commission authorized four NSAT related items:
increase project authorization for the North Satellite Renovation & North Satellite
Transit Station Lobbies Project by $200,000,000; execute Preliminary Work Amendment
#3 (PWA #3) with Hensel Phelps (HP) for up to $200,000,000; authorize Port staff to
execute all change orders to the HP contract within authorized budget and project
scope without returning for additional Commission authorization; and authorize Port
Construction Services (PCS) to execute small works contracts and use Port crews to
support NSAT construction
September 13, 2016 – The Commission authorized four NSAT related items:
the increase of project scope and budget (capital) by $7,000,000 for the revised third
floor layout to better accommodate the signature restaurant, provide 3,000 additional
square feet of future airport related leasable space, and increase AS premium traveler
lounge as requested by 4,850 square feet.
Increase authorization by $1,000,000 for project design.
Amend design service agreements with AECOM that exceed 50% value of the original
contract.
Increase authorization by $30,000,000 to accommodate Preliminary Work Package #2
construction.
May 24, 2016 - The Commission authorized four NSAT related items:
Increase of project scope and budget (capital and expense) by $121,219,098 for 30% &
60% design scope additions and risk contingencies
Increased authorization of $11,000,000 for continued NorthSTAR Program/Project
Management services and NSAT design and overall project support.
Amend service agreements with Jacobs Project Management Co. and AECOM.
Authorize the use of port crews and small works contractors.
December 8, 2015 – The Commission authorized $98,100,000 for the following:
Additional Pre-Construction services ($1,200,000)
Construction auditing services
Preliminary Construction work
March 24, 2015 – The Commission authorized three NSAT related items:
Expand the baggage handling system increasing the project scope for $14,400,000 and
$1,954,000 to complete the design.
Entering into a developer agreement with Puget Sound Energy and $200,000 in
reimbursement for the design and construction of underground gas infrastructure.
$5,300,000 to Prepare four locations to accommodate temporary passenger loading
bridges, to construct temporary construction offices; To complete construction of a
Satellite Transit System (STS) North loop Dynamic Display system; $600,000 in expense
funds for regulated materials management for AS’s tenant improvement project; and
Approval to use Port crew labor and small works contractors to complete early project
work.
COMMISSION AGENDA – Action Item No. __8d__ Page 8 of 8
Meeting Date: May 10, 2022
Template revised June 27, 2019 (Diversity in Contracting).
August 5, 2014 – The Commission authorized expansion of the NSAT, $191,323,143 budget
increase, $15,717,800 to complete the design, execute amendments to existing
consulting contracts; execute future consulting contracts and use of and to advertise for
General Contractor/Construction Manager (GC/CM) alternative public works contractor.
July 22, 2014 - NSAT Expansion Briefing
April 22, 2014 – Seattle-Tacoma International Airport Capital Program - Briefing
January 14, 2014 – NSAT expansion briefing.
May 28, 2013, Commission authorized the execution of separate service agreements for
Construction Management Services and Commissioning Services, of approximate values
of $10 million and $1.5 million.
December 11, 2012 – The Commission was briefed on the Vertical Conveyance
Modernization Project Aero Phases 1 and 2 and the possibility of adding the specified
elevators and escalators to the NorthSTAR program.
July 24, 2012 - Commission authorized $32,000,000 for the design of the NorthSTAR NSAT
Renovation and NSTS Lobbies project.
April 10, 2012 - The Commission authorized the execution of consultant contracts for design
and construction support services; program management services; and the completion of
site surveys for regulated materials management, for $1,200,000.