Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No. 8h
ACTION ITEM Date of Meeting January 28, 2025
DATE: January 17, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Laurel Dunphy, Director, Airport Operations
Eileen Francisco, Director, Aviation Project Management
SUBJECT: North Employee Parking Lot Improvements (#C800957)
Amount of this request: $6,120,000
Total estimated project cost:
$19,320,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to take all steps necessary to
complete the NEPL Improvements project. The amount requested for authorization is
$6,120,000 for a total authorized amount of $19,320,000.
EXECUTIVE SUMMARY
The NEPL was originally built approximately 25 years ago and serves airline, tenant, TSA, and
service provider personnel who work at Seattle-Tacoma International Airport (SEA). These
Airport partners consider this lot vital to their operations, which function 24 hours per day,
seven days per week. At 25 years old, the lot is experiencing failing infrastructure. This project
is intended as a renewal and replacement project for this existing facility. NEPL Improvements
includes three phases of work. Phase 1 is complete and included improvements to the bus
shelters to support operations and customer service and the replacement of failed electrical
feeders. Phase 2 is complete and included the replacement of failing infrastructure (retaining
wall, the remainder of the electrical feeders) and way finding signage. Phase 3 is in design and
includes pavement restoration, replacement of other failing infrastructure (water main, storm
channel drains) and replacement of banner signage at the three shelters. This request supports
the completion of Phase 3.
The NEPL operates and is paid for by the users through a cost recovery model. Monthly costs
for a user are currently $87.00 and will increase to $100.00 on February 1
st
. The NEPL
experiences a high utilization rate, with approximately 85% to 90% of the stalls filled each day.
JUSTIFICATION
This project will support the following Century Agenda goals:
COMMISSION AGENDA – Action Item No. 8h Page 2 of 5
Meeting Date: January 28, 2025
Template revised June 27, 2019 (Diversity in Contracting).
To 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.
To be the greenest and most energy-efficient port in North America by reducing air
pollutants and carbon emissions.
Diversity in Contracting
For Phase 1 the commitment for women and minority business enterprises (WMBE)
participation included both a design contract at seven percent, and a construction contract at
twenty-eight percent. For Phase 2 the commitment for WMBE participation included both a
design contract at ten percent, and a construction contract at twelve percent. For Phase 3 the
WMBE commitment for the design contract is ten percent. The project team is working with the
Diversity in Contracting Department to determine participation opportunities and will set an
appropriate aspirational goal for WMBE participation for the Phase 3 construction contract.
DETAILS
The NEPL provides 4,122 employee parking spaces for Airport tenants, service providers, and
airline employees. An average of 11,000 monthly parking permits have been issued for the use
of this facility. Airport Operations provides a 24/7 transit connection to the Main Terminal that
currently operates on a ten-minute headway. There are three Bus Shelter buildings in NEPL,
each approximately 2,000 square-feet in size, that provide a waiting area and restrooms in
support of the transit operations.
Scope of Work
The scope of work for this project is being delivered in three phases.
Phase 1 includes the minor remodel of all three bus shelters, the replacement of failed
electrical feeders, and other minor site improvements. This work is complete.
Phase 2 includes the replacement of a failing rockery retaining wall, the remaining electrical
feeders, and the parking lot wayfinding signage. This work is complete.
Phase 3 includes pavement rehabilitation and the replacement of failing infrastructure
(storm drainage channel drains and water main) and replacement of banner signage at the
three shelters.
Aviation is evaluating the expansion of electric vehicle charging infrastructure at NEPL. If the
expansion of EV charging infrastructure is pursued it will require additional budget and be
implemented as a fourth phase.
Schedule
Phase 3 Construction start 2025 Quarter 2
Phase 3 In-use date 2026 Quarter 3
COMMISSION AGENDA – Action Item No. 8h Page 3 of 5
Meeting Date: January 28, 2025
Template revised June 27, 2019 (Diversity in Contracting).
Cost Breakdown This Request
Total Project
Phase 1 Design $0
$487,000
Phase 1 Construction $0
$1,935,000
Total Phase 1 $0
$2,422,000
Phase 2 Design $0
$1,871,000
Phase 2 Construction $0
$7,007,000
Total Phase 2 $0
$8,878,000
Phase 3 Design $0
$1,900,000
Phase 3 Construction $6,120,000
$6,120,000
Total Phase 3 $0
$8,020,000
Total Project Cost $6,120,000
$19,320,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – No action, only Phase 1 and Phase 2 of the project is completed
Cost Implications: $11,300,000
Pros:
(1) Minimize capital investment by the Port.
Cons:
(1) Failing infrastructure would continue to degrade ultimately resulting in the loss of
parking lot operations.
(2) Costs would increase to maintain the existing failing infrastructure.
(3) Phase 3 project costs incurred to date would need to be expensed.
This is not the recommended alternative.
Alternative 2 – Move forward with Phase 3 scope.
Cost Implications: $19,320,000 (Phase 3 portion is $8,020,000, the balance of $11,300,000 for
Phase 1 & Phase 2 are complete).
Pros:
(1) Employee parking will utilize upgraded facilities and systems to support their operations
and customer service objectives.
(2) Minimizes costs to maintain the existing failing infrastructure.
Cons:
(1) Significant capital investment by the Port.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 8h Page 4 of 5
Meeting Date: January 28, 2025
Template revised June 27, 2019 (Diversity in Contracting).
FINANCIAL IMPLICATIONS
Cost Estimate
/Authorization Summary Capital
Expense
Total
COST ESTIMATE
Original estimate $6,635,000
$0
$6,635,000
Previous changes – net $12,612,000
$73,000
$12,685,000
Current change $0
$0
$0
Revised estimate $19,247,000
$73,000
$19,320,000
AUTHORIZATION
Previous authorizations $13,127,000
$73,000
$13,200,000
Current request for authorization $6,120,000
0
$6,120,000
Total authorizations, including this request $19,247,000
$73,000
$19,320,000
Remaining amount to be authorized $0
$0
$0
Annual Budget Status and Source of Funds
This project, CIP C800957, was included in the 2025-2029 capital budget and plan of finance
with a total budget of $19,247,000. The funding sources would be the airport development
fund and revenue bonds.
Financial Analysis and Summary
Project cost for analysis $8,020,000 (Phase 3 costs)
Business Unit (BU) Employee Parking
Effect on business performance
(NOI after depreciation)
If the cost recover model is followed, this project will add
$5.00 to each parking card when the new assets are
placed into service in 2027.
IRR/NPV (if relevant) N/A
CPE Impact N/A
Future Revenues and Expenses (Total cost of ownership)
The project will reduce long-term operating and maintenance costs for the facility by replacing
failing infrastructure.
ATTACHMENTS TO THIS REQUEST
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
January 24, 2023 – The Commission authorized the construction of Phase 2 and the design of
Phase 3.
COMMISSION AGENDA – Action Item No. 8h Page 5 of 5
Meeting Date: January 28, 2025
Template revised June 27, 2019 (Diversity in Contracting).
January 25, 2022 - The Commission authorized additional funds for the design and construction
of Phase 1, and additional funds for the design of Phase 2 in support of replacing failed and
failing electrical infrastructure.
June 8, 2021 – The Commission authorized 1) additional funds for the design and construction
of Phase 1, 2) completion of design and the utilization of Port crews and a small works contract
to complete early pavement work, and 3) additional funds for the design of Phase 2.
October 9, 2018 – The Commission authorized design and construction of Phase 1.
