COMMISSION AGENDA MEMORANDUM ACTION ITEM Item No. Date of Meeting DATE : May 19, 2025 TO: Stephen P. Metruck, Executive Director FROM: Keri Stephens, Director, Aviation Facilities and Capital Programs Eileen Francisco, Director Aviation Project Management 8d May 27, 2025 SUBJECT: Parking Garage Rehabilitation (#C801307) Amount of this request: $ 6,785,000 Total estimated project cost: $55,709,000 ACTION REQUESTED Request Commission authorization for the Executive Director to complete the design for the Parking Garage Rehabilitation project at Seattle-Tacoma International Airport (SEA) for a total authorization of $8,885,000. EXECUTIVE SUMMARY The SEA Parking Garage was constructed in three phases; the oldest central portion dating back to 1969 has passed its 50-year asset life, and two outboard expansion phases that were constructed in the 1990s. The project will provide architectural, fire suppression, mechanical/HVAC, medium voltage power, storm drainage, and structural/seismic improvements necessary to extend the asset life of the facility and meet current code requirements. The SEA Parking Garage currently supports public parking and ground transportation operations and is the highest non-aeronautical revenue generator at SEA. In November 2023, Commission authorized the execution of a project-specific design services contract and the completion of preliminary work. This request supports the completion of design and is within budget; additional Commission authorization will be required for construction. JUSTIFICATION This project supports the following Century Agenda strategic goal to advance this region as a leading tourism destination and business gateway, through the objective to meet the region's air transportation needs by delivering vital facilities and infrastructure in a sustainable and costeffective manner. The SEA Parking Garage is a major facility supporting both public parking (terminal direct, general, and pre-booked parking) and ground transportation (app based rideshare, courtesy vehicle, cruise charter bus, door to door service, pre-arranged limousine, and Template revised January 10, 2019. COMMISSION AGENDA - Action Item No. 8d Meeting Date: May 27, 2025 Page 2 of 5 taxi) operations. In 2024 public parking generated $111.0 million, and ground transportation generated $25.3 million, in operating revenue for the Port. This aging facility has had an increased frequency of failing infrastructure and systems, and outdated systems that no longer support the operational need or meet current code requirements. Diversity in Contracting The design services contract for this project has a 30% commitment for women and minority business enterprises (WMBE) participation. DETAILS This project will address the most critical aging facility components including architectural, fire suppression, mechanical/HVAC, medium voltage power, storm drainage, and structural/seismic. Separate efforts have already been completed, or are underway, that address communications, lighting, low voltage power, revenue control, and vertical circulation systems within the facility. As part of the preliminary work a conditions assessment was completed that identified the deficiencies within the SEA Parking Garage and the codes and standards that will be utilized to address those deficiencies. This request will support the completion of the facility assessment report, and the design of the prioritized improvements that will be completed as part of this project. Future Commission authorization will be required to support the construction of the improvements. It is likely that future projects will need to be programmed to address the full list of deficiencies identified in the conditions assessment and extend the service life of the facility. Scope of Work Port staff anticipates that the full project scope will include the following, and will need to be delivered through this and future projects: • Architectural: The installation of new or replacement of failed or failing weatherproofing membranes and required accessibility improvements. • Fire Suppression: The replacement or upgrade of the two separate fire suppression systems in the facility to meet code requirements. • Mechanical/HVAC: The replacement or upgrade of existing ventilation systems to meet code requirements. • Medium Voltage Power: The replacement or upgrade of the medium voltage power system to support included scoped improvements. • Storm Drainage: The replacement of failed or failing infrastructure, and a new connection into the storm drainage system instead of the industrial wastewater system providing capacity relief for SEA's industrial wastewater treatment plant. • Structural/Seismic: The renewal/repair of existing structural elements, replacement of expansion joints, and structural and seismic upgrades. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8d Meeting Date: May 27, 2025 Page 3 of 5 Schedule Design Complete Begin Construction In-use date 2026 Quarter 4 2027 Quarter 1 2030 Quarter 1 Cost Breakdown This Request Total Project Design Construction Total $6,785,000 $0 $8,885,000 $8,885,000 $46,824,000 $55,709,000 ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 - Stop work and defer improvements or upgrades for the SEA Parking Garage Cost Implications: $1.1 Million (estimated costs to date) Pros: (1) Cons: (1) (2) (3) No additional capital cost required. Does not address the current identified deficiencies or code requirements. Defers investment to extend service life of critical SEA asset and thereby increasing risk of facility failure. Does not provide capacity relief for SEA's industrial wastewater treatment plant. This is not the recommended alternative. Alternative 2 - Address code requirements and critical structural repairs/upgrades for the SEA Parking Garage. Cost Implications: $30,000,000 Pros: (1) Addresses code requirements. (2) Reduced capital investment required. (3) Extends the service life of some infrastructure systems of critical SEA asset. Cons: (1) Does not address all the current identified deficiencies. (2) Defers investment for some infrastructure systems to extend service life of critical SEA asset. (3) Does not provide capacity relief for SEA's industrial wastewater treatment plant. This is not the recommended alternative. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8d Meeting Date: May 27, 2025 Page 4 of 5 Alternative 3 - Address code requirements and prioritized deficiencies for the SEA Parking Garage. Cost Implications: $55,709,000.00 Pros: (1) Addresses code requirements and identifies deficiencies. (2) Extends the service life of the SEA Parking Garage, a critical asset. (3) Provides capacity relief for SEA's industrial wastewater treatment plant. Cons: (1) Requires greater capital investment. This is the recommended alternative. FINANCIAL IMPLICATIONS Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Original estimate $55,709,000 $0 $55,709,000 AUTHORIZATION Previous authorizations Current request for authorization Total authorizations, including this request Remaining amount to be authorized $2,100,000 $6,785,000 $8,885,000 $46,859,000 $0 $0 $0 $0 $2,100,000 $6,785,000 $8,885,000 $46,859,000 Annual Budget Status and Source of Funds This project #C801307 was included in the 2025-2029 capital budget and plan of finance with a total budget of $55,709,000. This project will be funded by the Airport Development Fund and future 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 $55,709,000 Public Parking NOI after depreciation will decrease N/A N/A Future Revenues and Expenses (Total cost of ownership) The operation and maintenance costs are anticipated to increase with improvements to the fire suppression and ventilation systems. Based upon the average yearly rainfall, costs for the Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8d Meeting Date: May 27, 2025 Page 5 of 5 treatment of stormwater from the SEA Parking Garage is expected to decrease by $135,000 annually. ADDITIONAL BACKGROUND The SEA Parking Garage Rehabilitation Project is one of several projects occurring in the SEA Parking Garage. These other projects include:  Parking Garage Elevators Modernization (C800789): This project is currently under construction and will replace the existing elevator systems and rehabilitate the elevator cab interiors. Work is anticipated to be completed by Q2 2026.  Parking Garage Low Voltage (C800901): This project is currently under construction and will replace the low voltage power distribution equipment in the Parking Garage. Work is anticipated to be completed by Q2 2027.  3rd Floor Ground Transportation Booth Enhancements (C801128): This project has advertised for construction bids and will renovate and expand the ground transportation booth and adjacent restrooms on the third floor of the Parking Garage. Work is anticipated to be completed by Q2 2026.  Parking garage UPS Replacement (C801329): This project is in preliminary design and will replace the uninterruptible power supplies (UPS) supporting revenue control equipment at the parking entrances and fourth floor payment kiosks. Work is anticipated to be completed by Q1 2027. ATTACHMENTS TO THIS REQUEST (1) Presentation slides PREVIOUS COMMISSION ACTIONS OR BRIEFINGS November 21,2023 - The Commission authorized the execution of a project-specific design services contract and completion of preliminary project work for $2,100,000. Template revised June 27, 2019 (Diversity in Contracting).