Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No. 8i
ACTION ITEM Date of Meeting May 13, 2025
DATE: May 6, 2025
TO: Stephen P. Metruck, Executive Director
FROM: Mark Leutwiler, Interim Director, Airport Operations
Eileen Francisco, Director, Aviation Project Management Group
SUBJECT: 3
rd
Floor Ground Transportation Booth Enhancements (CIP #C801128)
Amount of this request: $1,200,000
Total estimated project cost:
$5,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to take all steps necessary to
complete the 3
rd
Floor Ground Transportation Booth Enhancements project at Seattle-Tacoma
International Airport (SEA). This request is an increase in the amount of $1,200,000 for a total
authorization amount of $5,000,000.
EXECUTIVE SUMMARY
This project will renovate and expand the existing Ground Transportation (GT) booth located on
the 3
rd
Floor of the Main Garage at SEA. The GT booth functions as an administrative center for
the orderly permitting and control of all commercial ground transportation activity at SEA. The
existing facility was constructed over twenty years ago when SEA activity levels were much lower
and is now a confined and inefficient space. The cost increase is due to greater than anticipated
construction costs due to phasing and general conditions that were not accurately estimated.
JUSTIFICATION
This project reinvests in facilities essential to ground transportation operations at SEA supporting
the Century Agenda Goal 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.
Diversity in Contracting
The design of this project utilized an existing indefinite delivery indefinite quantity (IDIQ) contract
that has a Women and Minority-Owned Business Enterprise (WMBE) commitment of fifteen (15)
percent. The project team in coordination with the Diversity in Contracting department
COMMISSION AGENDA – Action Item No. 8i Page 2 of 5
Meeting Date: May 13, 2025
Template revised June 27, 2019 (Diversity in Contracting).
established an additional WMBE aspirational goal of fourteen percent for the construction phase
of this effort.
DETAILS
The project was advertised for construction bids in November 2024 and seven bids were received
ranging from $2.2M to $3.0M and were significantly above the engineer’s estimate of $1.2M.
Follow up meetings with the bidders identified that phasing costs (multiple
mobilizations/demobilizations, 30-day owner fit out between phases), market uncertainty,
contract time (tight schedule), and commodity price increases (HVAC and electrical were
significantly higher) were the key drivers for the higher bid costs. Additional funding of $1.6M
would have been required to move forward with the apparent low bid. Airport Operations
elected to not award the bid given the significant cost increase and to instead repackage and
rebid the project to reduce costs.
The project team worked with Airport Operations to review options to complete the work. The
recommendation was to remove the phasing requirements. The total project cost is estimated
at $5M and includes additional escalation and risk (tariffs, labor resources), and represents a
$1.2M increase to the project budget.
Scope of Work
The Scope of this project includes:
(1) Expansion of administration space to support up to eight (8) staff per shift.
(2) Addition of a staff breakroom and restroom
(3) Upgrade of customer restroom facilities meeting accessibility requirements.
(4) Upgrade and expansion of existing infrastructure systems, including HVAC.
(5) Technology enhancements including improved cell phone coverage and Wi-Fi.
Schedule
Activity
Commission construction authorization 2025, Quarter 2
Construction start 2025, Quarter 3
In-use date 2026, Quarter 1
Cost Breakdown This Request
Total Project
Design $0
$1,663,000
Construction $1,200,000
$3,337,000
Total $1,200,000
$5,000,000
COMMISSION AGENDA – Action Item No. 8i Page 3 of 5
Meeting Date: May 13, 2025
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not proceed with the improvements.
Cost Implications: $1,300,000 (current cost of design that would be expensed if the project does
not proceed.)
Pros:
(1) No further investment required by the Port.
Cons:
(1) GT staff support space would remain confined and inefficient.
(2) Does not provide technology enhancements.
(3) Does not upgrade customer restrooms to meet accessibility requirements.
(4) Poor HVAC performance continues to negatively affect workplace conditions.
(5) The project costs to date would need to be expensed.
This is not the recommended alternative.
Alternative 2 – Redesign facility to reduce costs.
Cost Implications: $5,000,000 (savings from decreased construction cost would be offset by
additional design).
Pros:
(1) Facilities support GT operations.
(2) Provides equitable work environment for GT staff.
Cons:
(1) Requires capital investment.
(2) Improvements are not completed prior to 2026 FIFA World Cup.
(3) GT staff relocated during construction.
(4) Customers required to use Floor 1 restrooms during construction.
This is not the recommended alternative.
Alternative 3 – Re-advertise current design removing phasing requirements.
Cost Implications: $5,000,000 (phasing requirements removed but design remains unchanged).
Pros:
(1) Facilities support GT operations.
(2) Improvements are completed by 2026 FIFA World Cup.
(3) Provides equitable work environment for GT staff.
Cons:
(1) Requires capital investment.
(2) GT staff relocated during construction.
(3) Customers required to use Floor 1 restrooms during construction.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 8i Page 4 of 5
Meeting Date: May 13, 2025
Template revised June 27, 2019 (Diversity in Contracting).
FINANCIAL IMPLICATIONS
Cost Estimate
/Authorization Summary Capital
Expense
Total
COST ESTIMATE
Original estimate $2,800,000
$0
$2,800,000
Previous changes $850,000
$150,000
$1,000,000
Current change $1,200,000
$0
$1,200,000
Revised estimate $4,850,000
$150,000
$5,000,000
AUTHORIZATION
Previous authorizations $3,650,000
$150,000
$3,800,000
Current request for authorization $1,200,000
$0
$1,200,000
Total authorizations, including this request $4,850,000
$150,000
$5,000,000
Remaining amount to be authorized $0
$0
$0
Annual Budget Status and Source of Funds
This project (CIP #C801128) was included in the 2025-2029 capital budget and plan of finance
with a budget of $3,650,000. A budget increase of $1,200,000 was transferred from the Non-
Aeronautical Allowance (CIP #C800754) for a total revised capital budget of $4,850,000 resulting
in a 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 $5,000,000
Business Unit (BU) Ground Transportation
Effect on business performance
(NOI after depreciation)
NOI after depreciation will decrease.
IRR/NPV (if relevant)
Costs would be recovered through the Ground
Transportation trip fees. Incremental $0.04 per trip fee.
CPE Impact N/A
Future Revenues and Expenses (Total cost of ownership)
As a result of this project, Aviation Maintenance anticipates moderate impacts resulting in
increased annual operating and management costs for mechanical systems, custodial services,
and electronic systems.
ADDITIONAL BACKGROUND
The existing GT booth was constructed in 2001 and is located on the 3
rd
Floor of the Main Garage
as part of the Ground Transportation Center servicing courtesy vehicles, taxis, pre-arranged limos
and transportation network companies like Uber and Lyft. Port staff (GT Controllers) currently
COMMISSION AGENDA – Action Item No. 8i Page 5 of 5
Meeting Date: May 13, 2025
Template revised June 27, 2019 (Diversity in Contracting).
work within this facility supporting the administration and management of GT permits and
providing customer service to SEA passengers. The initial construction did not include a few basic
amenities for staff (e.g., break area, lockers), and with the growth in SEA activity the facility is
now very confined and has an inefficient layout for current operational needs. The existing HVAC
system is inefficient, impacting workspace conditions and needs to be upgraded. The existing
facility is approximately 1,000 square feet and the new expanded facility will be approximately
1,800 square feet. Once completed the new facility will maximize staff productivity and provide
a high level of service to SEA passengers and GT providers.
The operations will be relocated during construction due to budget constraints.
ATTACHMENTS TO THIS REQUEST
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
May 23, 2023 – The Commission authorized design and construction of the project.
July 23, 2024 – The Commission authorized a project increase.
