Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8j
ACTION ITEM
Date of Meeting
January 24, 2023
DATE: January 17, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Laurel Dunphy, Director, Airport Operations
Eileen Francisco, Interim Capital Development Officer
SUBJECT: North Employee Parking Lot Improvements (C800957)
Amount of this request:
$7,155,000
Total estimated project cost:
$19,320,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) advertise and award a major
public works contract for Phase 2 of the project, and (2) authorize an additional $7,155,000 for a
total of $13,200,000 authorized to date in support of the North Employee Parking Lot (NEPL)
Improvements project at Seattle-Tacoma International Airport.
EXECUTIVE SUMMARY
The NEPL was originally built approximately 25 years ago. This lot serves airline, tenant, TSA and
service provider personnel a location near their place of business to park. These Airport partners
consider this lot vital to their operations, which function 24 hours per day, seven days per week.
At 25 years old, the lot is experiencing failing infrastructure. This project is intended as a renewal
and replacement project for this existing facility. NEPL Improvements includes three phases of
work. Phase 1 includes improvements to the bus shelters to support operations and customer
service and the replacement of failed electrical feeders. Phase 2 includes the replacement of
failing infrastructure (retaining wall, the remainder of the electrical feeders) and way finding
signage. Phase 3 includes pavement restoration, the replacement of other failing infrastructure
(water main, storm channel drains), and the potential to expand electric vehicle (EV) charging at
NEPL. The total project is currently estimated at $19,320,000 and does not include any EV
charging infrastructure scope. Additional budget will be secured once a decision is reached
regarding the potential expansion of EV parking.
The NEPL operates and is paid for by the users through a cost recovery model. Monthly costs for
a user are $81.00. The lot experiences a high utilization rate, with approximately 85% to 90% of
the stalls filled each day.
COMMISSION AGENDA – Action Item No. 8j Page 2 of 5
Meeting Date: January 24, 2023
Template revised June 27, 2019 (Diversity in Contracting).
JUSTIFICATION
This project will support the following Century Agenda goals:
• To advance this region as a leading tourism destination and business gateway by meeting
the region’s air transportation needs by delivering vital facilities and infrastructure in a
sustainable and cost-effective manner.
• To be the greenest and most energy-efficient port in North America by reducing air
pollutants and carbon emissions.
Diversity in Contracting
The aspirational goal for women and minority business enterprises (WMBE) participation for
Phase 1 include both a design contract with goal of seven percent, and a construction contract
with a goal of twenty-eight percent. The design contract for Phase 2 and Phase 3 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 Phase 2 construction contract.
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.
Scope of Work
The scope of work for this project was originally planned to be delivered in two phases but will
now be delivered in three phases. Aviation is evaluating the expansion of EV charging
infrastructure that necessitated the additional phase and resulted in a $200,000 cost increase
(additional escalation and soft costs).
• Phase 1 includes the minor remodel of all three bus shelters, the replacement of failed
electrical feeders, and other minor site improvements. This work is current under
construction.
• Phase 2 includes the replacement of a failing rockery retaining wall, the remaining electrical
feeders, and the parking lot wayfinding signage. During the design of Phase 2 the geotechnical
investigation identified the need to change the retaining wall type that resulted in a
$1,632,000 cost increase.
• Phase 3 includes pavement rehabilitation and the replacement of failing infrastructure (storm
drainage channel drains and water main). If the expansion of EV charging infrastructure is
pursued it will require additional budget and be implemented with this phase.
COMMISSION AGENDA – Action Item No. 8j Page 3 of 5
Meeting Date: January 24, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Schedule
Phase 1 In-use date
2023 Quarter 3
Phase 2 Construction start
2023 Quarter 2
Phase 2 In-use date
2023 Quarter 4
Phase 3 Design start
2023 Quarter 1
Phase 3 Construction start
2023 Quarter 4
Phase 3 In-use date
2024 Quarter 4
Cost Breakdown
This Request
Total Project
Phase 1 Design
$0
$487,000
Phase 1 Construction
$0
$1,935,000
Total Phase 1
$0
$2,422,000
Phase 2 Design
$0
$1,871,000
Phase 2 Construction
$6,653,000
$7,007,000
Total Phase 2
$8,878,000
Phase 3 Design
$502,000
$1,546,000
Phase 3 Construction
$0
$6,474,000
Total Phase 3
$0
$8,020,000
Total Project Cost
$7,155,000
$19,320,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – No action, only Phase 1 of the project is completed.
Cost Implications: $3,164,000
Pros:
(1) Minimized capital investment by the Port.
Cons:
(1) Failing infrastructure would continue to degrade ultimately resulting in the loss of
parking lot operations.
(2) Costs would increase to maintain the existing failing infrastructure.
(3) $742,000 of current capital costs associated with Phase 2 would be expensed.
This is not the recommended alternative.
Alternative 2 – Move forward with the original Phase 2 scope
Cost Implications: $19,120,000
Pros:
(1) Failing infrastructure is replaced supporting long-term parking lot operations.
COMMISSION AGENDA – Action Item No. 8j Page 4 of 5
Meeting Date: January 24, 2023
Template revised June 27, 2019 (Diversity in Contracting).
(2) Minimizes costs to maintain the existing failing infrastructure.
Cons:
(1) Significant capital investment by the Port.
(2) The expansion of EV parking infrastructure would not be explored.
This is not the recommended alternative.
Alternative 3 – Move forward with Phase 2 and Phase 3 scope.
Cost Implications: $19,320,000
Pros:
(1) Failing infrastructure is replaced supporting long-term parking lot operations.
(2) Minimizes costs to maintain the existing failing infrastructure.
(3) Provides the opportunity to evaluate the expansion of EV parking infrastructure.
Cons:
(1) Significant capital investment by the Port.
(2) Construction of Phase 3 scope would be delayed one year.
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 – net
$10,780,000
$73,000
$10,853,000
Current change
$1,832,000
$0
$1,832,000
Revised estimate
$19,247,000
$73,000
$19,320,000
AUTHORIZATION
Previous authorizations
$6,045,000
$0
$6,045,000
Current request for authorization
$7,082,000
$73,000
$7,155,000
Total authorizations, including this request
$13,127,000
$73,000
$13,200,000
Remaining amount to be authorized
$6,120,000
$0
$6,120,000
Annual Budget Status and Source of Funds
This project, CIP C800957, was included in the 2023-2027 capital budget and plan of finance with
a total budget of $17,415,000. A budget increase of $1,832,000 was transferred from the Non-
aeronautical Allowance CIP (C800754) resulting in zero net change to the Aviation capital budget.
The funding sources would be the airport development fund and revenue bonds.
COMMISSION AGENDA – Action Item No. 8j Page 5 of 5
Meeting Date: January 24, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Financial Analysis and Summary
Project cost for analysis
$ 19,320,000
Business Unit (BU)
Employee Parking
Effect on business performance
(NOI after depreciation)
Incremental employee parking card rate will increase by
$11.38 by 2026. NOI after depreciation will increase as
capital costs are included in cost recovery rate base.
IRR/NPV (if relevant)
N/A
For CPE Impact
N/A
Future Revenues and Expenses (Total cost of ownership)
The 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
January 25, 2022 – The Commission authorized 1) additional funds for the design and
construction of Phase 1, 2) additional funds for the design of Phase 2 of the NEPL Improvements
project.
June 8, 2021 – The Commission authorized 1) additional funds for the design and construction of
Phase 1, 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 2 of the NEPL
Improvements project.
October 9, 2018 – The Commission authorized design and construction of Phase 2 of the NEPL
Improvements project.
