Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8h
ACTION ITEM
Date of Meeting
May 28, 2024
DATE : May 20, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Eileen Francisco, Director, Aviation Project Management
Loren Armstrong, Senior Port Counsel
Pete Ramels, General Counsel
SUBJECT: International Arrivals Facility Budget Request (CIP #s C800583, C800781, C800836)
and Authorization to Execute a Settlement Agreement.
Amount of this request: $14,000,000
Total estimated project cost: $1,010,645,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to increase funding and execute all
necessary activities for the International Arrivals Facility project, at Seattle-Tacoma International
Airport, by $14,000,000, for a new total of $1,010,645,000, and to execute a settlement
agreement to partially resolve the pending litigation.
EXECUTIVE SUMMARY
Construction of the International Arrivals Facility at Seattle-Tacoma International Airport is
almost complete, and the facility has been in use since May 2022. Additional budget in the
amount of $14,000,000 is now required to resolve all of the Design-Builder’s claims in the pending
litigation and close out the project.
The action will approve and fund a partial settlement in the IAF litigation. The settlement resolves
all of the Design-Builder’s claims against the Port arising out of the IAF project, and it resolves
most, but not all, of the Port’s counterclaims against the Design-Builder. The Port’s claims against
the Design-Builder that are not resolved by the settlement agreement and that are still pending
in the ongoing litigation include the Port’s counterclaims for significant damages against the
Design-Builder related to the Design-Builder’s failure to design and build the IAF to
simultaneously accommodate 20 widebody aircraft.
Pursuant to the settlement agreement, the Port will pay the Design-Builder an additional
$13,791,461.13 (the “Settlement Funds”). Because the Port believes that any additional amounts
owed by the Port are owed to subcontractors because of COVID-19 pandemic impacts to their
COMMISSION AGENDA – Action Item No. 8h Page 2 of 2
Meeting Date: May 28, 2024
Template revised June 27, 2019 (Diversity in Contracting).
work on the Project, the settlement agreement requires that 100% of the Settlement Funds be
distributed to the Design-Builder’s subcontractors (after payment of applicable sales tax due on
the Settlement Funds and the payment of the subcontractors’ pro-rata portion of the Design
Bulder’s fees and costs incurred to recover the Settlement Funds on behalf of the
subcontractors).
Commission was briefed on the settlement agreement in executive session.
There are no attachments to this memo.
