Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8k
ACTION ITEM
Date of Meeting
March 14, 2023
DATE: March 3, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Keri Stephens, Director AV Facilities and Capital Programs
Eileen Francisco, Director Aviation Project Management Group
SUBJECT: Concourse HVAC Infrastructure Renewal and Replacement (CIP# C801265) Project
Definition
Amount of this request:
$7,000,000
Total estimated project cost:
$250,000,000 - $500,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) advertise and execute a
project specific contract for design services, (2) develop a Project Definition Document and
progress the overall design to 30%, (3) utilize Port crews for enabling work related to the
Concourse HVAC Infrastructure Renewal and Replacement Program project at the Seattle-
Tacoma International Airport. The amount being requested under this authorization is
$7,000,000. The anticipated total project cost is to be determined during project definition.
EXECUTIVE SUMMARY
The primary focus of the Concourse HVAC Infrastructure Renewal and Replacement Program
(CHIRRP) is the renewal and replacement of the existing heating, ventilation, and air conditioning
(HVAC) systems and the addition of smoke control or management systems within Concourses
B, C, and D. The project scope will include replacement or refurbishment of rooftop air handing
equipment and associated penthouses, removal of ramp level air handling equipment including
re-routing associated mechanical ducting, addition of smoke control and or smoke management
infrastructure and systems, structural modifications, and emergency power upgrades. It is
anticipated this project will impact the inside of the concourses, the extent to which will be
further defined within the Project Definition Document (PDD).
This project is necessary to correct code deficiencies that have been impacting planning efforts
for the Airport Dining and Retail (ADR), Restroom Renovation, and Concourse Modernization
Programs. Those programs cannot succeed in their planned future development without
authorization of this scope. In addition, the project will improve life safety systems within the
airport through adding smoke control to Concourses B, C, and D.
COMMISSION AGENDA – Action Item No. 8k Page 2 of 6
Meeting Date: March 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
JUSTIFICATION
Deficiencies in critical HVAC supply infrastructure have been identified in planning efforts for the
ADR, Restroom Renovation, and Concourse Modernization Programs. To address immediate
facility infrastructure needs for those projects, some smaller projects such as the Concourse C
Temporary Air Handling Units (CIP#801149) have been authorized.
The most recent major renovations of Concourses B, C, and D took place in 1990, approximately
33 years ago. HVAC equipment and infrastructure within these concourses is reaching end of
useful life and is significantly undersized. Based on the age of the HVAC systems and the present
need for greater air supply capacity arising from other capital programs, there is an urgent need
to begin renewal and replacement of these systems.
In 2019, the Port of Seattle conducted a Peer Review associated with SEA’s approximately $4
billion Capital Improvement Program (CIP). A key finding from the review stated the importance
of combining similar or related projects into larger bundles to aid in expediting approvals,
delivery, efficiency, resource utilization, and project management. While smaller projects could
be planned reactively as needs are identified, the recommended alternative for CHIRRP is to
create a bundled HVAC upgrade project to modernize the critical components of this
infrastructure throughout Concourses B, C, and D.
The complexity and operational impacts of this work dictates the need to start planning now to
ensure the Project can complete upgrades prior to system failures and within the anticipated five
to ten year planned service life of the temporary equipment installed by the Concourse C
Temporary Air Handling Units project. This temporary project was required to meet current
supply air demand for ADR spaces and new restrooms but needs a permanent follow-on solution.
Supply air deficiencies have been identified in areas of Concourses B and C; if this project is not
implemented the need for temporary projects will continue.
Concourses B, C, and D do not have existing smoke control or smoke management systems.
Smoke control and smoke management engineering overlaps directly with HVAC infrastructure
engineering, as such combination of these elements in the same project is necessary. This large-
scale renewal and replacement of HVAC systems within these concourses may be the only
opportunity for efficient improvement of life safety by implementing smoke control or smoke
management until the next major HVAC upgrade. Any new smoke control or management
systems on Concourses B, C, and D have to operate in conjunction with existing systems in the
Central Terminal, Concourse A, and the Main Terminal.
Opportunities for energy reduction related to modernization of the proposed HVAC equipment
and systems will be explored within the PDD effort. In addition, the project will take advantage
of efficiency in replacement of building elements which will already be impacted from the base
scope of work, such as upgrading ceiling systems, lighting, security cameras, and signage. In
replacement of lighting and lighting controls specifically, there exists another opportunity for
energy reduction which will also be explored within the PDD.
COMMISSION AGENDA – Action Item No. 8k Page 3 of 6
Meeting Date: March 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
This initial authorization request will support development of a PDD to finalize the scope,
schedule, budget, and project delivery method for the elements outlined above and will
subsequently progress the project to a 30% design milestone. Replacement and renewal of these
systems within an operational airport will be highly complex. The PDD will explore critical issues
such as structural loading and seismic bracing code requirements for permanent and temporary
equipment, sequencing and phasing of anticipated gate and occupied space closures,
development of a smoke control or smoke management model of the associated concourses, and
reviews of both existing and planned HVAC system capacities for the programs identified as
reliant on these systems. After the PDD is completed and concurrent with our progression to
30% design, the project will return to commission to request authorization to execute a General
Contractor, Construction Manager (GCCM) contract as well as authorization to complete the
remainder of the project design documents.
Diversity in Contracting
The project team in coordination with Diversity in Contracting team has set a 17% women-and
minority-owned business enterprise (WMBE) aspirational goal for the design contract for this
project.
DETAILS
This project includes the renewal and replacement of HVAC systems, updating necessary related
utilities, and correcting code and performance related deficiencies in Concourses B, C, and D. It
includes a budget for structural upgrades and “ceiling up” renewal of impacted building elements
such as impacted ceilings, lighting, security cameras, and signage.
Scope of Work
Concourse HVAC Infrastructure Renewal Replacement Program will focus on HVAC
refurbishment/replacement, ceiling and lighting renewal/replacement, and ceiling mounted
fixtures renewal replacement.
The scope of work will include:
(1) Replacement or refurbishment of existing air handlers.
(2) Addition of supplemental air handlers.
(3) Replacement of select terminal units for air distribution.
(4) Upsizing chilled water and hydronic heating water distribution.
(5) Emergency power system upgrades (panels, distribution gear, and step-down
transformers.
(6) Addition of active smoke control and or smoke management systems.
(7) Distribution ducting as required including ceiling diffusers.
(8) Ceiling replacement within the concourses (not including hold rooms).
(9) Structural seismic upgrades required by the latest building code.
(10) Fire sprinklers and fire riser upgrades.
(11) Refreshed exit signage.
COMMISSION AGENDA – Action Item No. 8k Page 4 of 6
Meeting Date: March 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
(12) Column cover replacements as needed.
(13) Upgraded lighting to LED & new lighting control systems.
(14) Waste and ventilation pipe replacement where impacted.
(15) Ceiling mounted signage updates.
(16) Security camera updates.
(17) Demolition of abandoned conduit & utilities.
(18) Compliance with upcoming State of Washington Clean Buildings Performance Standard
will identify energy efficiency measures that may need to be added to CHIRRP’s scope
for implementation.
Schedule
Activity
2023 Quarter 2
2024 Quarter 1
2025 Quarter 1
2024 Quarter 3
2027 Quarter 2
2027 Quarter 3
2031 Quarter 3
Cost Breakdown
This Request
Total Project
Design
$7,000,000
$20,000,000 - $50,000,000
Construction
0
$230,000,000 - $450,000,000
Total
$7,000,000
$250,000,000 - $500,000,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not renew or replace existing ageing and undersized HVAC infrastructure.
Cost Implications: $0
Pros:
(1) This is the least expensive alternative.
Cons:
(1) Airport Dining and Retail, Restroom Renovation, and Concourse Modernization
Programs will not be able to proceed with some future planned work.
(2) Ageing infrastructure may fail resulting in the need for emergency repairs and projects
to maintain life safety.
This is not the recommended alternative.
Alternative 2 – Renewal and replacement of HVAC systems, updating necessary related utilities,
and correcting code related deficiencies. Include budget estimate for structural upgrades and
COMMISSION AGENDA – Action Item No. 8k Page 5 of 6
Meeting Date: March 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
renewal of impacted building elements such as impacted ceilings, lighting, security cameras, and
signage. Also include discretionary scope to raise concourse ceilings for passenger experience
improvement including demolition of the abandoned interior roof structures, ceiling
replacement in unimpacted hold rooms, and complete re-design of the interior air distribution
system.
Cost Implications: $500,000,000 - $1,000,000,000
Pros:
(1) This alternative will solve air supply issues required for the Airport Dining and Retail
(ADR), Restroom Renovation, and Concourse Modernization Programs.
(2) This alternative includes discretionary upgrades like increasing natural light to the
concourses.
Cons:
(1) This is the most expensive alternative.
(2) This alternative is the most invasive and will interrupt occupied use of the concourses
significantly.
This is not the recommended alternative.
Alternative 3 – Renewal and replacement of HVAC systems, updating necessary related utilities,
and correcting code related deficiencies. Budget for structural upgrades and renewal of “ceiling
up” building elements already impacted by the project such as renewal of opened up ceilings,
associated lighting, security cameras, and signage.
Cost Implications: $250,000,000 - $500,000,000
Pros:
(1) This alternative will solve air supply issues required for the Airport Dining and Retail
(ADR), Restroom Renovation, and Concourse Modernization Programs.
(2) This alternative takes advantage of cost-efficient upgrades to building elements that will
already be impacted by the project.
(3) This alternative includes budget for structural upgrades which may not be needed but
are likely to be required.
Cons:
(1) This alternative has a significant cost, although less than Alternative 2.
(2) This will not increase natural light to the concourses.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 8k Page 6 of 6
Meeting Date: March 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$250,000,000 -
$500,000,000
0
$250,000,000 -
$500,000,000
AUTHORIZATION
Previous authorizations
$200,000
0
$200,000
Current request for authorization
$7,000,000
0
$7,000,000
Total authorizations, including this
request
$7,200,000
0
$7,200,000
Remaining amount to be authorized
$242,800,000 -
$492,800,000
0
$242,800,000 -
$492,800,000
Annual Budget Status and Source of Funds
This project, C801265, was included in the 2023-2027 capital budget and plan of finance with a
budget of $255,000,000. A budget transfer from the Aeronautical Allowance C800753 would
occur when the project estimate is known. The funding sources would be the Airport
Development Fund (ADF) and revenue bonds.
Financial Analysis and Summary
Project cost for analysis
TBD
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
TBD
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
August 11, 2020 – The Commission authorized $2,000,000 for design and construction of the
Concourse C Temporary Air Handling Units (CIP#801149) project.
March 23, 2021 – The Commission authorized $26,000,000 for the Post IAF Airline
Realignment (CIP#801158) project for project management and design services, GCCM
services, and a Memorandum of Agreement between the Port and United Airlines.
April 12, 2022 – The Commission authorized an increase to the project budget for the
Concourse C Temporary Air Handling Units (CIP#801149) project in the amount of
$1,000,000.