Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8d
ACTION ITEM
Date of Meeting
August 13, 2024
DATE: August 2, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Keri Stephens, Director, Aviation Facilities and Capital Programs
Eileen Francisco, Director, Aviation Project Management
SUBJECT: Sanitary Pipe Replacement (CIP# C801239) – Construction Authorization
Amount of this request:
$2,700,000
Total estimated project cost:
$3,350,000
ACTION REQUESTED
Request Commission authorizaon for the Execuve Director (1) to adverse, award, and execute
a major works construcon contract; (2) execute related project change orders, amendments,
work authorizaons, purchases, contracts, and take other acons necessary to support and
deliver the Sanitary Pipe Replacement project within the approved budget; (3) authorize the use
of Port of Seale crews to support construcon acvies. This request is for $2,700,000 of a total
esmated cost of $3,350,000.
EXECUTIVE SUMMARY
Sanitary waste pipes serving multiple Seattle-Tacoma International Airport (SEA) areas are at or
near end-of-life (typically 30 years). This project replaces or relines waste pipes. Failures result in
unscheduled shutdown of airport restrooms, restaurants, and tenant spaces which will directly
impact passenger experience and tenant operations. Leakage and spills from failed pipes may
result in health hazards to the public and airport workers as some waste pipes are routed over
occupied spaces.
JUSTIFICATION
Failure of sanitary waste piping is often sudden, unexpected, and impossible to predict. Sanitary
waste pipe failures result in emergency repairs which cause unscheduled shutdowns of airport
restrooms, restaurants, and tenant-owned spaces. This directly impacts customer experience
and tenant operations. This project replaces the sanitary waste piping identified as a risk if not
replaced.
COMMISSION AGENDA – Action Item No. 8d Page 2 of 4
Meeting Date: August 13, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Diversity in Contracting
The construction services WMBE aspirational goal is 5%.
DETAILS
Scope of Work
Replace or reline failing sanitary waste piping on Concourse A, Main Terminal, and Central
Terminal.
(1) A Concourse - Work will result in temporary closures to restrooms and tenant spaces
on concourse level. Scope includes approximately 210 linear feet of sewer pipe work.
(2) Main Terminal – Pipe located in mechanical room 4 (under baggage claim 15 area).
Approximately 250 linear feet pipe will be replaced from cast iron to stainless-steel.
(3) Central Terminal North – Approximately 330 linear feet of sanitary pipe serving
concourse level restrooms and concessions. 30 linear feet of this will be replacing cast
iron piping with stainless-steel.
Schedule
Activity
Construction start
2024 Quarter 4
In-use date
2025 Quarter 4
Cost Breakdown
This Request
Total Project
Design
$0
$650,000
Construction
$2,700,000
$2,700,000
Total
$2,700,000
$3,350,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Status Quo. Do not proceed with the project.
Cost Implications: Expense approximately $300,000 for Design and Notebook costs.
Pros:
(1) Delays or defers capital investment.
Cons:
(1) Sanitary pipe failures could occur at any time resulting in large expense costs for
emergency repairs and shutdowns to restrooms, concessions and other tenant owned
spaces.
(2) Potential for additional increase in costs for materials, labor, and/or inflation.
(3) Wastes Design and Notebook development capital costs.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. 8d Page 3 of 4
Meeting Date: August 13, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Alternative 2 – Replace or reline failing sanitary waste piping on Concourse A, Main Terminal,
and Central Terminal.
Cost Implications: $3,285,000 in capital costs and $65,000 in expense costs.
Pros:
(1) Provides an additional 15-50 years of sanitary pipe life, resulting in less unexpected
shutdowns and emergency repairs.
(2) Reduces potential negative risk to passenger experience by limiting shutdowns of
concessions and restrooms.
(3) Replaces aging infrastructure in a timely manner.
Cons:
(1) Capital and expense costs.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$2,935,000
$65,000
$3,000,000
Current change
$350,000
$0
$350,000
Revised estimate
$3,285,000
$65,000
$3,350,000
AUTHORIZATION
Previous authorizations
$650,000
$0
$650,000
Current request for authorization
$2,635,000
$65,000
$2,700,000
Total authorizations, including this request
$3,285,000
$65,000
$3,350,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project C801239 was included in the 2024-2028 capital budget and plan of finance with a
budget of $2,935,000. The capital budget increase of $350,000 was transferred from the
Aeronautical Allowance
1
CIP C800753 resulting in no net change to the Airport capital budget.
The funding sources will be the Airport Development Fund.
1
The Aeronautical Allowance is included in the Capital Improvement Plan to ensure funding capacity for
unspecified projects, cost increases for existing projects, new initiatives, and unforeseen needs. This ensures funding
capacity for unanticipated spending within the dollar amount of the Allowance CIP.
COMMISSION AGENDA – Action Item No. 8d Page 4 of 4
Meeting Date: August 13, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Financial Analysis and Summary
Project cost for analysis
$3,350,000
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 2026
ATTACHMENTS TO THIS REQUEST
(1) Presentation Slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
March 14, 2023 – The Commission authorized design, construction bid documents, and an
additional $935,000 in funding for the project for a new total of $3,000,000.
