Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8e
ACTION ITEM
Date of Meeting
November 14, 2023
DATE: November 6, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Jeff Wolf, Director, Aviation Commercial Management
Eileen Francisco, Director, Aviation Project Management Group
SUBJECT: Rental Car Facility Pavement Remediation - 5
th
Floor Parking Membrane
Amount of this request:
$1,030,000
Total estimated project cost:
$9,300,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to take all steps necessary to
complete the Rental Car Facility (RCF) 5
th
Floor Parking Membrane project at Seattle-Tacoma
International Airport (SEA). This request is in the amount of $1,030,000 for a total authorization
amount of $9,300,000.
EXECUTIVE SUMMARY
The employee and visitor parking area at the RCF has worn and needs new surface treatment to
protect from water intrusion and improve pedestrian conditions during rain events. The work
was previously part of the RCF Pavement Remediation project and was omitted when varying site
conditions made the placement of the proposed resurfacing material incompatible with the
existing condition. This effort will complete the original effort utilizing a resurfacing material
compatible with the existing condition.
JUSTIFICATION
This project reinvests in facilities essential to ground transportation operations at SEA supporting
the Century Agenda Goal 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.
Diversity in Contracting
The design of this project utilized an existing indefinite delivery indefinite quantity (IDIQ) contract
that has a Women and Minority-Owned Business Enterprise (WMBE) commitment of ten
percent. The project team in coordination with the Diversity in Contracting department
established an additional WMBE aspirational goal of thirteen percent for the construction phase
of this effort.
COMMISSION AGENDA – Action Item No. 8e Page 2 of 5
Meeting Date: November 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
DETAILS
During the construction of the RCF Pavement Remediation project a portion of the existing 5
th
floor weatherproofing membrane was removed exposing a varying site condition. A layer of
urethane coating was discovered which was not compatible with the planned methyl
methacrylate membrane to be installed. After reviewing the potential costs and warranty
requirements, Port staff elected to remove the installation of the planned methyl methacrylate
membrane from the construction contract and proceed with an additional later phase of the
project that would install a compatible product. Construction was completed for the remaining
scope of the RCF Pavement Remediation project in August 2021.
Design has now been completed for the complete replacement of the 5
th
floor weatherproofing
membrane. The overall project budget has increased from $8,270,000 to $9,300,000 to account
for the additional costs associated with the compatible membrane, escalation due to the
extended schedule, and the additional soft costs to complete design and procure and manage a
second construction contract.
Scope of Work
The scope of this phase of the project includes the replacement of the employee and visitor
parking lot surface membrane on the 5
th
floor of the RCF.
Schedule
Activity
Construction start
2024 Quarter 2
In-use date
2024 Quarter 3
Cost Breakdown
This Request
Total Project
Design
$0
$1,400,000
Construction
$1,030,000
$7,900,000
Total
$1,030,000
$9,300,000
COMMISSION AGENDA – Action Item No. 8e Page 3 of 5
Meeting Date: November 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
The alternatives presented are specific to the replacement of the employee and visitor parking
lot surface membrane on the 5th floor of the RCF.
Alternative 1 – Do not replace the employee and visitor parking membrane.
Cost Implications: $210,000
Pros:
(1) Reduces capital investment.
Cons:
(1) Not supported by the rental car tenants.
(2) Not consistent with the tenant lease agreement to protect the tenant improvements on
the floors below.
This is not the recommended alternative.
Alternative 2 – Continue with original methyl methacrylate membrane installation.
Cost Implications: $11,500,000
Pros:
(1) Completes the membrane installation with the original construction effort.
(2) Consistent with the tenant lease agreement.
(3) Meets the requirements for the product warranty.
Cons:
(1) Significantly higher capital investment.
(2) Not supported by the rental car tenants.
This is not the recommended alternative.
Alternative 3 – Proceed with a second phase of the project to install a compatible membrane
product.
Cost Implications: $9,300,000
Pros:
(1) Lower capital investment.
(2) Consistent with the tenant lease agreement.
(3) Ensures a product warranty.
(4) Supported by the rental car tenants.
Cons:
(1) Delays membrane replacement by up to three years from the original schedule.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 8e Page 4 of 5
Meeting Date: November 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$11,417,000
$0
$11,417,000
Previous changes – net
($2,492,000)
$75,000
($2,417,000)
Current change
$355,000
($55,000)
$300,000
Revised estimate
$9,280,000
$20,000
$9,300,000
AUTHORIZATION
Previous authorizations
$8,195,000
$75,000
$8,270,000
Current request for authorization
$1,085,000
($55,000)
$1,030,000
Total authorizations, including this request
$9,280,000
$20,000
$9,300,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project #C800977 was included in the 2023-2027 capital budget and plan of finance with a
total budget of $8,925,000. A budget increase of $355,000 will be transferred from #C800754
Non-Aeronautical Allowance resulting in no net change to the Aviation capital budget. This
project will be funded by Customer Facility Charge (CFC) funds per the terms of the Rental Car
Facility Lease Agreement.
Financial Analysis and Summary
Project cost for analysis
$9,300,000
Business Unit (BU)
Rental Car
Effect on business performance
(NOI after depreciation)
NOI after depreciation will decrease
IRR/NPV (if relevant)
N/A
CPE Impact
N/A
Future Revenues and Expenses (Total cost of ownership)
According to the terms of the RCF Lease Agreement the Operators are responsible for majority
of the on-going operating and maintenance costs of the facility.
ATTACHMENTS TO THIS REQUEST
(1) Presentation
COMMISSION AGENDA – Action Item No. 8e Page 5 of 5
Meeting Date: November 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
May 25, 2021 – The Commission authorized a change order for additional weatherproof
membrane preparatory coating work.
February 9, 2021 – The Commission authorized a change order to defer work consistent with
Governor Inslee’s “Stay Home, Say Healthy” proclamation.
April 23, 2019 – The Commission authorized advertisement and execution of a major works
construction contract.
July 10, 2018 – The Commission authorized execution of a professional services contract for
design services, proceeding with the design and preparation of contract bid documents,
and use Port Construction Service crews to perform the early construction work.
