Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8b
ACTION ITEM
Date of Meeting
May 28, 2024
DATE: May 20, 2024
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:
$500,000
Total estimated project cost:
$5,600,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to authorize an additional
$500,000 for a total of $5,600,000 to support the Port Construction Services (PCS) Facility
Improvement project.
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.
The project is being implemented in phases with the first two phases currently under
construction. The project scope has increased for the last phase, the site improvements, to
include a modular building foundation slab and additional storm drainage improvements to
meet regulatory requirements. The additional authorization request supports this project
scope increase.
JUSTIFICATION
PCS provides vital support to the Aviation, Maritime, and Economic Development operating
divisions. PCS supported 379 projects representing approximately $14.5 million of construction
COMMISSION AGENDA – Action Item No. _8b__ Page 2 of 5
Meeting Date: May 28, 2024
Template revised June 27, 2019 (Diversity in Contracting).
support in 2023. This project reinvests in facilities essential to PCS construction operations
thereby supporting the following Century Agenda Goals:
• 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 project is being delivered in three phases. The first phase includes the demolition of the
improvements on the Clean Energy site. This work has been permitted and is underway. Phase
2 includes the purchase and installation of the modular building. The procurement of this
purchase contract has been extended since the first advertisement resulted in no acceptable
bids. The second advertisement was successful and is in the process of being executed. Now
that the modular building is purchased the design team can complete the final design and
permitting of the site improvements. The scope of work for the site improvements has
increased to provide a foundation slab for the modular building, and to meet storm drainage
regulatory requirements, and has resulted in the budget increase of $500,000.
Scope of Work
The scope of work of this project includes:
• 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 196th St to the PCS Facility providing pedestrian access to
28th Ave S and the nearby Angle Lake Light Rail Transit Station.
Schedule
Construction Site Demolition Begins
2024 Quarter 2
Commission Additional Project authorization
2024 Quarter 2
COMMISSION AGENDA – Action Item No. _8b__ Page 3 of 5
Meeting Date: May 28, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Construction start
2024 Quarter 2
In-use date
2025 Quarter 1
Cost Breakdown
This Request
Total Project
Design
$0
$824,000
Construction
$500,000
$4,776,000
Total
$500,000
$5,600,000
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 the 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.
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.
Cons:
(1) Requires the most capital investment by the Port.
(2) Longest implementation schedule with completion estimated in Q4 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.
COMMISSION AGENDA – Action Item No. _8b__ Page 4 of 5
Meeting Date: May 28, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Alternative 3 – Expand PCS Facility onto adjacent CNG Fueling Facility site.
Cost Implications: $5,600,000
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 Q1 2025.
Cons:
(1) Greater capital investment required by the Port.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$4,930,000
$170,000
$5,100,000
Current change
$490,000
$10,000
$500,000
Revised estimate
$5,420,000
$180,000
$5,600,000
AUTHORIZATION
Previous authorizations
$4,930,000
$170,000
$5,100,000
Current request for authorization
$490,000
$10,000
$500,000
Total authorizations, including this request
$5,420,000
$180,000
$5,600,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project (CIP #C801359) was included in the 2024-2028 capital budget and plan of finance
with a total capital budget of $4,930,000. The additional $490,000 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
$5,600,000
Business Unit (BU)
Division-Wide, 69.2% 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
$0.02 in 2026
COMMISSION AGENDA – Action Item No. _8b__ Page 5 of 5
Meeting Date: May 28, 2024
Template revised June 27, 2019 (Diversity in Contracting).
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.
ADDITIONAL BACKGROUND
The PCS Facility was originally constructed in 2001 and is located south of SEA in the vicinity of
28th Ave S and S 196th 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 has expanded to 45 people. 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
was completed late last 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 was a compressed natural gas (CNG) fueling facility operated by
Clean Energy. This facility went into operation in 2002 and has since relocated their operations
to Pacific late last year. This facility has been vacated and will be incorporated into the PCS
Facility as part of this project.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
May 9, 2023 – Commission authorization to 1) utilize Port crews and 2) take all steps necessary
to complete the project.
