Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8c
ACTION ITEM
Date of Meeting
May 23, 2023
DATE: May 11, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Keri Stephens, Director, Aviation Facilities and Capital Programs
Eileen Francisco, Director, Aviation Project Management
SUBJECT: Boiler Room Upgrades (CIP# 801230) – Design Authorization
Amount of this request:
$1,479,000
Total estimated project cost:
$4,839,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) prepare design and
construction bid documents for the Boiler Room Upgrades project; (2) utilize Port of Seattle
crews to support design and pre-construction activities. The amount of this request is
$1,479,000 for an estimated total project cost not to exceed $4,839,000.
EXECUTIVE SUMMARY
The central mechanical plant provides airport-wide steam and chilled water for cooling,
heating, and hot water purposes. This project will update components of the Boiler system to
allow for the continued operational ability to utilize both natural gas and diesel fuels, effectively
maintaining a layer of redundancy to the system in the event of a natural gas curtailment. This
project will install new and replace old steam supply and fuel flow meters, which will improve
energy use tracking and accuracy, leading to efficiency savings. This project will also upgrade
the control systems for Boilers #1 through #4 to include Siemens DDC integration. The
Deaerator and Condensate System Upgrade project, which was previously submitted to
Commission, also performs work on the Central Mechanical Plant’s heating system. However,
that project focuses on different components and will have an extended duration due to the
space constraint challenges present in the Central Mechanical Plant.
JUSTIFICATION
The central mechanical plant, which houses the boiler and chiller systems, provides the steam
and chilled water necessary for providing cooling, heating, and hot water to the main terminal,
concourses, and North and South satellites. It is an essential element of the airport, and it is
COMMISSION AGENDA – Action Item No. 8c Page 2 of 4
Meeting Date: May 23, 2023
Template revised June 27, 2019 (Diversity in Contracting).
critical that it operates in a consistent and efficient manner. Natural gas curtailment events,
which occurred as recently as Q1 2023, have illustrated the necessity for a resilient and
redundant system. This project will replace aging components of the boiler system to ensure
continued reliability during curtailment events, as well as to increase its overall energy
efficiency. Additionally, the boiler system controls will be updated for better connectivity to the
central mechanical plant control room.
Diversity in Contracting
The design services will be completed using an existing IDIQ contract that was established in
2022 which has a 16% WMBE participation utilization requirement.
DETAILS
Scope of Work
This project will modify Boiler #4 improving the ability to utilize both natural gas and diesel
fuels, as well as to resolve fuel and steam metering issues on all four boilers. Additionally, the
control systems for boilers #1 through #4 will be upgraded to include Siemens DDC integration
with BacNet Protocol.
(1) Boiler #4 modified to improve dual fuel operations.
(2) Install new and replace old steam supply, natural gas, and diesel fuel flow meters on
Boilers #1 through #4.
(3) Install new Exhaust Gas Analyzer for Boiler #4.
(4) Upgrade control systems on Boilers #1 through #4 to include Building Automation
System and Siemens DDC.
(5) Design modification for a permanent compressed air supply for long term operation
and startup under emergency conditions.
(6) Install additional emergency shut down buttons for boiler system where absent at
operator station and corridor exits to increase operational safety.
Schedule
Activity
Design complete
Q3 2024
Commission construction authorization
Q4 2024
Construction Notice to Proceed
Q1 2025
Substantial completion
Q1 2026
Cost Breakdown
This Request
Total Project
Design
$1,479,000
$1,479,000
Construction
$0
$3,360,000
Total
$1,479,000
$4,839,000
COMMISSION AGENDA – Action Item No. 8c Page 3 of 4
Meeting Date: May 23, 2023
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Status Quo. Do not proceed with the project.
Cost Implications: Approximately $40,000 for Notebook Development would be expensed.
Pros:
(1) Defers capital investment.
Cons:
(1) Natural gas curtailments may occur at any time, but are often associated with colder
weather, as evidenced by a recent curtailment event in Q1 2023. Without a reliable
redundancy system, the airport steam needs may not be able to be met in the case of
a major gas curtailment event.
(2) Potential for additional increase in costs for materials, labor, and inflation.
This is not the recommended alternative.
Alternative 2 – Proceed with project as scoped. Install equipment needed to allow for
continued operational ability on both natural gas and diesel fuel.
Cost Implications: $4,839,000 in capital costs.
Pros:
(1) Maintains a layer of redundancy in the event of a gas curtailment. Airport steam needs
can be met while on diesel fuel, even at peak demand.
(2) New fuel flow meters allow for more accurate energy use tracking, leading to greater
efficiency and cost savings.
(3) Updated control panels allow for DDC integration.
(4) Install additional emergency shut off buttons.
Cons:
(1) Capital costs.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$3,406,000
$0
$3,406,000
Current change
$1,433,000
$0
$1,433,000
Revised estimate
$4,839,000
$0
$4,839,000
AUTHORIZATION
Previous authorizations
$40,000
$0
$40,000
Current request for authorization
$1,479,000
$0
$1,479,000
COMMISSION AGENDA – Action Item No. 8c Page 4 of 4
Meeting Date: May 23, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Total authorizations, including this request
$1,519,000
$0
$1,519,000
Remaining amount to be authorized
$3,320,000
$0
$3,320,000
Annual Budget Status and Source of Funds
The Boiler Room Upgrade (CIP# 801230) is included in the 2023-2027 capital budget and plan of
finance with a budget of $3,406,000. The capital budget increase of $1,433,000 was transferred
from the Aeronautical Allowance CIP C800753 resulting in no net change to the Airport capital
budget. The funding sources will be the Airport Development Fund and existing revenue bonds.
Financial Analysis and Summary
Project cost for analysis
$4,839,000
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
$0.01 in 2027
Future Revenues and Expenses (Total cost of ownership)
This project will likely have no impact on Aviation Maintenance operating & maintenance
(O&M) costs.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
N/A
