COMMISSION AGENDA MEMORANDUM Item No. ACTION ITEM Date of Meeting DATE: February 27, 2025 TO: Stephen P. Metruck, Executive Director FROM: Keri Stephens, Director AV Facilities & Capital Programs Eileen Francisco, Director Aviation Project Management 8g March 11, 2025 SUBJECT: C801316 - Generator Controls Building Engineering Systems (BES) Design & Construction Amount of this request: Total estimated project cost: $8,450,000 $9,400,000 ACTION REQUESTED Request Commission authorization for the Executive Director to take all steps necessary, including the execution of all contracts, including Public Works, Alternative Public Work procedures in accordance with RCW.10, Good and Services, Personal Services, Professional Services, other consulting service and any other types of contracts or agreements to deliver the Generator Controls project. The amount of this request is $8,450,000 for an estimated total project cost not to exceed $9,400,000. EXECUTIVE SUMMARY This is a renewal and replacement project. The A Concourse and Combined Communications and Control Center (C4) generators provides back-up power to life safety items such as egress lighting, fire alarms, radio systems, evacuation elevators, exit doors, fire pumps, and the ACC, ECC, and 911 dispatch in the C4. The generators were initially installed during the South Terminal Expansion Project (STEP) in 2004 with controls provided by GE Fanuc Programmable Logic Controller (PLC). GE no longer produces or supports the Fanuc PLC therefore software upgrades and hardware are difficult to obtain. The Port has recently standardized using Allen Bradley PLCs. This project would replace the obsolete PLCs with the new standard. JUSTIFICATION The project is a regulatory requirement. Emergency power generation is required by the National Electrical Code (NEC) and the National Fire Protection Association (NFPA) for all life-safety systems. Replacing the generator controls mitigates the risk of an unexpected control failure and subsequent loss of emergency power. Template revised January 10, 2019. COMMISSION AGENDA - Action Item No. 8g Meeting Date: March 11, 2025 Page 2 of 4 Diversity in Contracting The project staff, in coordination with the Diversity in Contracting Department, evaluated the WMBE goals for the BES contract and determined a WMBE aspirational goal of 12% is appropriate. DETAILS The work detailed in this memo is to remove and replace the PLCs for the A Concourse and C4 generators. Scope of Work The Generator Controls Project will consist of: (1) (2) (3) Replacing all end-of-life GE Fanuc PLCs with new Allen Bradley PLCs Integrate generator operation status and support systems into the Direct Digital Control (DDC) system for remote monitoring during disruptions. Correct NFPA non-compliant issues in the generator rooms, including: a. labeling, backup lighting, & service-rated panel for radiators fans and pumps Schedule Activity Commission design authorization Design start Commission construction authorization Construction start In-use date 2025 Quarter 1 2025 Quarter 3 2025 Quarter 1 2026 Quarter 2 2027 Quarter 3 Cost Breakdown This Request Total Project Design & Honorarium Construction Total $257,000 $8,193,000 $8,450,000 $1,207,000 $8,193,000 $9,400,000 ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 - Defer project to a later date or cancel project Cost Implications: Approximately $200,000 would need to be expensed for previous work on the notebook development and basis of design. Pros: (1) No further capital investment at this time. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8g Meeting Date: March 11, 2025 Cons: (1) (2) Page 3 of 4 Increase risk that a generator control could fail over time resulting in the loss of emergency power and a large capital expense to replace. Potential for increased costs of materials and labor if deferred to a later date. This is not the recommended alternative. Alternative 2 - Replace the controls for the two generators as separate projects. Cost Implications: Capital project investment of an estimated $12 to $14M for if executed as separate projects. Pros: (1) (2) (3) (4) Cons: (1) (2) (3) Simplify projects to potentially increase the number of contract bidders. Apply lessons learned from first project into the second project. Correct NFPA noncompliance issues within the generator rooms Achieve NEC compliance for both generators Increase project schedule Increase capital investment Mobilizing and demobilizing temporary emergency generator twice potentially impact other projects due to its location on the A Concourse apron. This is not the recommended alternative. Alternative 3 - Replace both generators' PLCs during one capital project Cost Implications: Capital project investment of an estimated $9,400,000. Pros: (1) (2) (3) (4) (5) Mobilizing and demobilizing temporary emergency generator once, reducing the impact on other projects Combined projects allow for greater efficiencies during design and construction. Commissioning and construction activities overlap. Correct NFPA noncompliance issues within the generator rooms Achieve NEC compliance for both generators Cons: (1) Requires capital investment This is the recommended alternative. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8g Meeting Date: March 11, 2025 Page 4 of 4 FINANCIAL IMPLICATIONS Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Original estimate Current change Revised estimate $10,535,000 ($1,260,000) $9,275,000 $0 $125,000 $125,000 $10,535,000 ($1,135,000) $9,400,000 AUTHORIZATION Previous authorizations Current request for authorization Total authorizations, including this request Remaining amount to be authorized $950,000 $8,325,000 $9,275,000 $0 $0 $125,000 $125,000 $0 $950,000 $8,450,000 $9,400,000 $0 Annual Budget Status and Source of Funds This project (C801316) was included in the 2025-2029 capital budget and plan of finance with a budget of $10,535,000. A budget decrease of $1,260,000 was transferred to the Aeronautical Allowance1 CIP C800753 resulting in zero net change to the Aviation capital budget. The funding sources will be the Airport Development Fund (ADF) and revenue bonds. Financial Analysis and Summary Project cost for analysis Business Unit (BU) Effect on business performance (NOI after depreciation) IRR/NPV (if relevant) CPE Impact $9,400,000 Terminal Building NOI after depreciation will increase due to inclusion of capital (and operating) costs in airline rate base. N/A $0.02 in 2028 Future Revenues and Expenses (Total cost of ownership) This project will likely have no impact on Aviation Maintenance operating & maintenance costs. ATTACHMENTS TO THIS REQUEST (1) Presentation PREVIOUS COMMISSION ACTIONS OR BRIEFINGS None 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. Template revised June 27, 2019 (Diversity in Contracting).