Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8h
ACTION ITEM
Date of Meeting
January 10, 2023
DATE: December 22, 2022
TO: Stephen P. Metruck, Executive Director
FROM: Eileen Francisco, Interim Aviation Chief Development Officer
SUBJECT: Terminal Solid Waste Project Irregular Bid (CIP #800945)
Amount of this request:
$2,104,000
Total estimated project cost:
$14,680,000
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 $2,104,000; and (2) award and
execute an irregular bid for Major Construction Contract MC-0320945. This request is for
$2,104,000 for a revised total estimated project cost of $14,680,000.
EXECUTIVE SUMMARY
This request is to authorize the award and execution of an irregular bid and increase the budget
by $2,104,000.
The Terminal Solid Waste Project was advertised as a Major Construction contract which received
only one qualified bid which was greater than 19% of the engineer’s estimate. After interviewing
several non-bidding plan holders, it is unlikely that repackaging and rebidding the project will
yield different results.
Solid Waste throughput and capacity are essential for Airport operations, passenger comfort,
worker safety, and overall sanitation. Significant pre-pandemic passenger volumes at the Airport
have resulted in a 60% increase to terminal waste (garbage, recycling, and compost) volumes
with an additional 50% increase in volumes forecasted over the next 10 years. The current solid
waste infrastructure is exceeding design capacity and needs to be expanded to meet current and
future demands. This project directly supports the Airport’s Environmental Action Plan goal to
divert 60 percent of waste from landfills be ensuring enough throughput capacity is available for
composting and recycling volumes.
COMMISSION AGENDA – Action Item No. 8h Page 2 of 5
Meeting Date: January 10, 2023
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 and 2020
Solid Waste Growth Forecast and Capacity Studies.
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. The Airport’s composting and food donation
programs help fight climate change by reducing greenhouse gas emissions associated with food
waste. Project improvements will help ensure the Airport can properly manage increasing
amounts of food waste and compostable packaging sorted by our passengers and tenants so it
can be sent to local composting facilities. In addition to supporting the Port's 60% waste diversion
goal, upgrading the Airport’s compost capacity helps our facilities support Washington State and
National Environmental Protection Agency food waste reduction goals (50% reduction by 2030).
New, high-capacity compactors and access-control and monitoring systems in this project will
improve operational efficiency while reducing cross-contamination of waste streams and
improving measuring and monitoring of waste data.
Diversity in Contracting
For the design phase, the consultant committed to a 20% Woman and Minority Business
Enterprise (WMBE) utilization and is currently achieving 37.5%. The construction phase of the
project has a WMBE aspirational goal of 12%, the apparent low bidder committed to 13% WMBE
utilization.
COMMISSION AGENDA – Action Item No. 8h Page 3 of 5
Meeting Date: January 10, 2023
Template revised June 27, 2019 (Diversity in Contracting).
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.
Scope of Work
The Terminal Solid Waste project will construct 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
Activity
Construction start
In-use date
Cost Breakdown
This Request
Total Project
Design
$0
$2,000,000
Construction
$2,104,000
$12,680,000
Total
$2,104,000
$14,680,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
The Airport considered multiple alternatives in the project formation phase. This alternative was
selected for addressing future waste demand while limiting footprint and providing
tenant/airline access to solid waste disposal. The status quo option is not viable as it will not meet
waste disposal needs. Redesign or repackaging of the project is unlikely to create savings at a
future date.
Alternative 1 – Proceed with construction of the Solid Waste Project awarding the irregular bid.
Cost Implications: Capital $14,480,000, Expense $200,000
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.
COMMISSION AGENDA – Action Item No. 8h Page 4 of 5
Meeting Date: January 10, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) Requires Gate B1 to close for approximately 8 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
Previous changes – net
$6,176,000
$0
$6,176,000
Current change
$2,104,000
$0
$2,104,000
Revised estimate
$14,480,000
$200,000
$14,680,000
AUTHORIZATION
Previous authorizations
$12,376,000
$200,000
$12,576,000
Current request for authorization
$2,104,000
$0
$2,104,000
Total authorizations, including this request
$14,480,000
$200,000
$14,680,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project, CIP C800945, was included in the 2023-2027 capital budget and plan of finance with
a budget of $12,376,000. A budget increase of $2,104,000 was transferred from the Aeronautical
Reserve CIP (C800753) resulting in zero net change to the Aviation capital budget. 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), existing revenue bonds and future
revenue bonds.
Financial Analysis and Summary
Project cost for analysis
$14,680,000
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
$0.04 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.
COMMISSION AGENDA – Action Item No. 8h Page 5 of 5
Meeting Date: January 10, 2023
Template revised June 27, 2019 (Diversity in Contracting).
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
April 12, 2022 – The Commission authorized the Executive Director advertise and award a
major public works contract. At that time the total estimated project Cost was
$12,576,000.
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.