Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8d
ACTION ITEM
Date of Meeting
May 9, 2023
DATE: May 1, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Jermaine Murray, Director Port Construction Services
Eileen Francisco, Director, Aviation Project Management Group
SUBJECT: Port Construction Services (PCS) Facility Improvement (C801359)
Amount of this request:
$4,930,000
Total estimated project cost:
$5,100,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) utilize Port crews and (2) take
all steps necessary to complete the PCS Facility Improvement project at Seattle-Tacoma
International Airport (SEA). This request is in the amount of $4,930,000 for a total authorization
amount of $5,100,000.
EXECUTIVE SUMMARY
PCS provides construction support to the Aviation, Maritime, and Economic Development
operating divisions of the Port. The PCS Facility is located south of SEA. Constructed over twenty
years ago, it includes a logistics area, laydown/storage, two modular buildings, and two shops.
One of the modular buildings supporting crew operations was purchased twenty-five years ago
and requires immediate replacement. To respond to the increasing demand for their services,
the PCS crew will nearly double in size and to serve their needs their supporting facilities need to
grow with them. Given the long-term property development needs of SEA this project will
support the initial expansion of the PCS Facility and is intended to support construction
operations for the next five years. A second phase that is currently being programmed will be
required in the near future though it is not a part of this request.
JUSTIFICATION
PCS provides vital support to the Aviation, Maritime, and Economic Development operating
divisions. PCS supported 175 projects representing approximately $11 million of construction
related work in 2022. This project reinvests in facilities essential to PCS construction operations
thereby supporting the following Century Agenda Goals:
COMMISSION AGENDA – Action Item No. 8d Page 2 of 5
Meeting Date: May 9, 2023
Template revised June 27, 2019 (Diversity in Contracting).
• Position the Puget Sound region as a premier international logistics hub to meet the region’s
international trade and cargo needs in an efficient and sustainable manner.
• 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
This project will be delivered through a combination of in-house design support, purchased
goods, small works contracts, and Port crews. Small works contracts will be administered in
support of this project, and the Diversity in Contracting Department along with the project team
will be conducting outreach to WMBE businesses of the construction opportunities.
DETAILS
The PCS Facility was originally constructed in 2001 and is located south of SEA in the vicinity of
28
th
Ave S and S 196
th
St. The site includes a logistics area, laydown/storage, two modular
buildings (one for administration and one for crew operations), and two shops. PCS is currently
in the process of expanding their crew size to meet the work demands from the Aviation,
Maritime, and Economic Development divisions. In 2022 the PCS crew size increased to 27 people
and is planned to expand to 45 people by early 2024. This is a significant increase and warrants
additional investment in facilities to support construction operations.
The existing crew operations modular building was purchased in 1998 and has outlived its useful
life. The modular building is experiencing roof and window leaks, dry-rot, mold, and plumbing
and mechanical system failures. In addition, with the growth in PCS the existing modular building
is not large enough to support construction operations. An immediate replacement is required.
SEA is evaluating property needs to support Airport operations over the next twenty years. This
includes the PCS Facility site. A phased approach is being taken to support PCS construction
operations while the longer-term needs are being assessed. This project is intended to support
the immediate and short-term needs over the next five years. A follow-on project will address
the longer-term facility needs that are consistent with SEA’s overall property needs. These
longer-term facility improvements are not part of this project effort, and the initial planning is
anticipated to be completed in Q3 this year. The new modular building supporting crew
operations can be repurposed in the future as a construction field office if required.
Adjacent to the PCS Facility is compressed natural gas (CNG) fueling facility operated by Clean
Energy. This facility went into operation in 2002 with an initial ten-year lease, followed by a
second five-year lease that ended in 2016. Clean Energy has continued to operate at this location
on a month-to-month basis and will be relocating their operation to Pacific later this year. This
facility will be demolished and incorporated into the PCS Facility as part of this project. SEA has
utilized this facility as a backup CNG fueling facility supporting the employee parking and rental
COMMISSION AGENDA – Action Item No. 8d Page 3 of 5
Meeting Date: May 9, 2023
Template revised June 27, 2019 (Diversity in Contracting).
car transit operations. Alternative operational plans are being put in place utilizing other nearby
CNG fueling facilities to ensure the resilience of these transit operations.
Scope of Work
The scope of work includes:
• Demolition of an existing modular building and CNG fueling facility. The tenant, Clean Energy,
will be required to remove their equipment and appurtenances.
• Purchase and installation of an expanded modular building that includes an assembly/break
area, kitchen, shared offices, locker rooms, restrooms, and a shower.
• Reconfiguration of storage and laydown areas to accommodate additional large vehicles and
equipment.
• Expansion of the logistics area that supports vehicle, equipment, and employee parking and
vendor deliveries and associated site improvements including lighting, security video system,
landscaping, storm water improvements, and a new entrance gate with access control.
• Extension of the sidewalk along S 196
th
St to the PCS Facility providing pedestrian access to
28
th
Ave S and the nearby Angle Lake Light Rail Transit Station.
The scope of work also includes an early work phase that provides temporary parking at the CNG
fueling facility prior to its suspension of operations in October 2023.
Schedule
Design start
2023 Q2
Construction start
2023 Q4
In-use date
2024 Q2
Cost Breakdown
This Request
Total Project
Design
$695,750
$865,750
Construction
$4,234,250
$4,234,250
Total
$4,930,000
$5,100,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Replace crew operations modular building with same sized facility.
Cost Implications: $1,500,000
Pros:
(1) Requires the least amount of investment by the Port.
(2) Supports development of the long-term property needs at SEA before investing further
into the PCS Facility.
(3) Shortest implementation schedule with completion estimated in Q2 2024.
COMMISSION AGENDA – Action Item No. 8d Page 4 of 5
Meeting Date: May 9, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) Replaces the crew operations modular building in-kind resulting in a significantly
undersized facility with non-equitable working conditions.
(2) Does not expand the PCS Facility logistics space to support construction operations.
This is not the recommended alternative.
Alternative 2 – Expand PCS Facility onto adjacent undeveloped Port-owned parcel.
Cost Implications: $9,900,000
Pros:
(1) Replaces the crew operations modular building providing equitable working conditions
for PCS crew.
(2) Expands the PCS Facility logistics space to support construction operations.
(3) Retains the existing CNG Fueling Facility until the tenant chooses to vacate the facility.
Cons:
(1) Requires the most capital investment by the Port.
(2) Longest implementation schedule with completion estimated in Q3 2025.
(3) Greatest investment in site development that may be contrary to the long-term property
needs of SEA.
This is not the recommended alternative.
Alternative 3 – Expand PCS Facility onto adjacent CNG Fueling Facility site.
Cost Implications: $5,100,000
Pros:
(1) Replaces the crew operations modular building providing equitable working conditions
for PCS crew.
(2) Expands the PCS Facility logistics space to support construction operations.
(3) Shorter implementation schedule with completion estimated in Q3 2024.
Cons:
(1) Greater capital investment required by the Port.
(2) Requires termination of lease with Clean Energy resulting in some revenue loss to the
Port (approximately $2,800 per month).
(3) Requires an alternative backup fueling location with greater travel time to provide
resiliency for SEA employee parking and rental car transit operations.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 8d Page 5 of 5
Meeting Date: May 9, 2023
Template revised June 27, 2019 (Diversity in Contracting).
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$4,930,000
$170,000
$5,100,000
AUTHORIZATION
Previous authorizations
$170,000
$0
$170,000
Current request for authorization
$4,760,000
$170,000
$4,930,000
Total authorizations, including this request
$4,930,000
$170,000
$5,100,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project (CIP #C801359) was not included in the 2023-2027 capital budget and plan of finance.
The budget of $4,930,000 was transferred from the Aeronautical reserve. The funding sources
will be the Airport Development Fund (ADF) and revenue bonds.
Financial Analysis and Summary
Project cost for analysis
$5,100,000
Business Unit (BU)
Division-wide, 61.8% airlines cost recovery
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 2024
Future Revenues and Expenses (Total cost of ownership)
As a result of this project, Aviation Maintenance anticipates minor impacts resulting in increased
annual operation and maintenance costs. Costs for the crew operations modular building are
anticipated to remain the same. The site improvements, including the lighting and landscaping
will result in a minor increase in operation and maintenance costs.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None
