Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8d
ACTION ITEM
Date of Meeting
April 16, 2024
DATE: April 2, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Keri Stephens, Director, Aviation Facilities and Capital Programs
Eileen Francisco, Director, Aviation Project Management
SUBJECT: Airport Terminal Solid Waste Project (CIP #800945)
Amount of this request:
$4,500,000
Total estimated project cost:
$19,180,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to: (1) increase the project scope
and associated budget for the Airport Terminal Solid Waste project in the amount of $4,500,000;
(2) advertise, bid, and execute a major works construction contract, execute related project
change orders, amendments, work authorizations, purchases, contracts, and take other actions
necessary to support and deliver the Airport Terminal Solid Waste Project; and (3) authorize the
use of Port of Seattle crews to support the design and construction activities. Total authorization
is $19,180,000.
EXECUTIVE SUMMARY
Solid Waste throughput and capacity are essential for Airport operations, passenger comfort,
worker safety, and overall sanitation. The Airport’s Terminal Solid Waste project addresses
current shortfalls and expands capacity to meet future demands of trash, recycling, and
composting waste streams. In addition, the project installs sanitation stations at waste collection
areas across the Airport to address regulatory findings. This project directly supports the Airport’s
Environmental Landfill Diversion Strategy. The project is currently in construction.
This request is for additional funding to lower the roofline of the North Solid Waste Building
which will enhance the Central Terminal experience and strengthen tenant relationships. The
Central Terminal Window Wall is the gathering space where passengers eat, relax, and enjoy the
views of the airfield and the Olympic Mountains. The Terminal Solid Waste North Building
conflicts with the view from our northern Airport Dinning and Retail tenants. Though vetted in
design, communication of this new building was not thoroughly presented to the tenants. This
request rectifies that situation by lowering the height of the North Solid Waste addition and
provides the Airport the opportunity to install and test a green roof system. The green roof
system provides multiple advantages to the airport including reducing solar gain through to the
iconic window wall and provides a secondary stormwater benefit.
COMMISSION AGENDA – Action Item No. 8d Page 2 of 5
Meeting Date: April 16, 2024
Template revised June 27, 2019 (Diversity in Contracting).
The current project budget is $14,680,000. The new budget estimate is $19,180,000, an increase
of $4,500,000. This budget increase includes design changes, change order costs, unforeseen cost
additions and associated soft costs necessary to accommodate the project.
JUSTIFICATION
The Central Terminal core solid waste refuse collection and processing areas were constructed
in 2003. The space provided two-stream operations for garbage and recycling only. Composting
operations began in 2006 and are handled by movable bins. The limited space in the current
facility limits the ability for operational solutions to manage solid waste levels, which results in
overflow of solid waste and unsanitary conditions. Overflowing waste is often blown onto the
ramp creating foreign object debris, a serious safety hazard to aircraft engines. Additionally,
when solid waste compactors are full, tenants are more likely to incorrectly throw waste in other
containers, contaminating them and eliminating their ability to be properly recycled. This project
will build the required additional space and infrastructure to meet future demands for solid
waste, including recycling and composting, while remaining compliant with federal code and
sanitation guidelines.
The reduction in height of the terminal solid waste roof ensures the airfield views from the public
area and restaurants in the Central Terminal remain clear but will introduce the view of a
nondescript roof membrane. The relatively small footprint of exposed roof provides a great
opportunity to pilot an extensive green roof system at SEA. Multiple airports around the world
have introduced green roofs both for their building performance and aesthetic features.
Extensive green roofs are shallow and require minimal maintenance, extend the lifecycle of the
roof membrane, provide secondary stormwater benefits, and add a biophilic element that ties
back to the Northwest Sense of Place. The roof will be easy to access from the Central Terminal
for maintenance and cameras will be installed to allow Wildlife department to track and remove
any potential gull nests.
This project directly supports the Port’s Century Agenda goal to be the greenest and most energy
efficient Port in North America by expanding compost and recycling capacity, which enables the
airport to meet its solid waste diversion goals. The Airport’s composting and food donation
programs help fight climate change by reducing greenhouse gas emissions associated with food
waste. Project improvements will help ensure the Airport can properly manage increasing
amounts of food waste and compostable packaging sorted by our passengers and tenants so it
can be sent to local composting facilities. In addition to supporting the Port's 60% waste diversion
goal, upgrading the Airport’s compost capacity helps our facilities support Washington State and
National Environmental Protection Agency food waste reduction goals (50% reduction by 2030).
New, high-capacity compactors and access-control and monitoring systems in this project will
improve operational efficiency while reducing cross-contamination of waste streams and
improving measuring and monitoring of waste data.
COMMISSION AGENDA – Action Item No. 8d Page 3 of 5
Meeting Date: April 16, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Diversity in Contracting
For the design phase, the consultant committed to a 20% Woman and Minority Business
Enterprise (WMBE) utilization and is currently achieving 34.6%. The construction phase of the
project has a WMBE aspirational goal of 12%, the construction contractor committed to a 13%
WMBE utilization rate and is currently achieving 14%.
DETAILS
The Terminal Solid Waste project is essential work to right-size the facility infrastructure to
accommodate the growth in the Airport and subsequent increase in solid waste volumes. The
project accommodates passenger and terminal growth through 2036, aligns with Century Agenda
and Environmental diversion goals and satisfies numerous regulatory requirements.
Scope of Work
This request lowers the roof line of the North Solid Waste Central Terminal Addition to improve
views within the terminal. In addition, it takes advantage of the new roof to install a pilot green
roof system.
Schedule
Activity
Design
Construction Re-Start
In-use date
Cost Breakdown
This Request
Total Project
Total
$4,500,000
$19,180,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Leave the project scope as is and fund an additional $450,000 to cover unforeseen
conditions found during construction.
Cost Implications: $15,130,000
Pros:
(1) Completes construction.
Cons:
(1) Customer experience in Central Terminal Window Wall area degraded.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. 8d Page 4 of 5
Meeting Date: April 16, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Alternative 2 – Enhance the Central Terminal Window Wall views to include lowering the North
building roof and inclusion of a pilot green roof. $450,000 is included for previously encountered
unforeseen conditions.
Cost Implications: $19,180,000
Pros:
(1) Improved Customer experience
(2) Green Roof Pilot opportunity with secondary storm water benefits
(3) Tenant / Airport Dining and Retail Relationship
Cons:
(1) Cost increase
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$6,200,000
$200,000
$6,400,000
Previous changes – net
$8,280,000
$0
$8,280,000
Current change
$4,500,000
$0
$0
Revised estimate
$18,980,000
$200,000
$19,180,000
AUTHORIZATION
Previous authorizations
$14,480,000
$200,000
$14,680,000
Current request for authorization
$4,500,000
$0
$4,500,000
Total authorizations, including this request
$18,980,000
$200,000
$19,180,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project, CIP C800945, was included in the 2023-2028 capital budget and plan of finance with
a budget of $14,480,000. A budget increase of $4,500,000 was transferred from the Aeronautical
Reserve CIP (C800753) resulting in zero net change to the Aviation capital budget. The funding
source will be the Airport Development Fund (ADF), existing revenue bonds and future revenue
bonds. The project received Majority in Interest (MII) approval on January 9, 2023. The budget
increase will trigger the MII provision. Port Management elected the use of Signatory Lease
Agreement (SLOA) MII Management Reserve. This provision with SLOA allows the Port to proceed
with previously approved projects when there are budget increases without another MII vote.
COMMISSION AGENDA – Action Item No. 8d Page 5 of 5
Meeting Date: April 16, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Financial Analysis and Summary
Project cost for analysis
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
$0.05 in 2026
Future Revenues and Expenses (Total cost of ownership)
The recommended solution is expected to yield a 10-year cost avoidance of $9,600,000 to the
solid waste program. Avoidance is based on reduced tipping fees and costs to mitigate waste
overages. Additional green roof and compactor equipment operations and maintenance costs
will be $90,000 annually.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
January 10, 2023 – The Commission authorized the award of an irregular bid. At that time
the total Cost of the project was $14,680,000.
April 12, 2022 – The Commission authorized the Executive Director advertise and award a
major public works contract. At that time the total estimated project Cost was
$12,576,000.
April 14, 2020 – The Commission authorized the Executive Director to advertise and execute
a project specific design contract.  Staff anticipated a project cost increase.  
October 8, 2019 – The Commission authorized the Executive Director to design and prepare
construction documents for Terminals Solid Waste Project. At that time the total
estimated project cost was $6,400,000.