Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No. 8d
Date of Meeting June 24, 2025
DATE: June 18, 2025
TO: Stephen P. Metruck, Executive Director
FROM: Keri Stephens, Director, Aviation Facilities and Capital Programs
SUBJECT: Replacement of PC Air Units Project (CIP# C802126)
Amount of this request: $4,065,387
Total estimated project cost:
$4,065,387
ACTION REQUESTED
Request a single Commission authorization in the requested amount of $4,065,387 for the
Executive Director to take all steps necessary, including the execution of all contracts, Public
Works, Alternative Public Work procedures in accordance with RCW 39.10, Purchase PC (Pre-
Conditioned) Air Units, use Port of Seattle crews as well as small and major works unit price
contracts to perform the work and any other types of contracts or agreements to complete this
project.
EXECUTIVE SUMMARY
This project will replace or refurbish broken Preconditioned Air Handling Units (AHUs), which
provide heating and cooling to aircraft so that pilots do not have to use jet-fuel powered aircraft
auxiliary power units. There are 16 gate location AHUs that have burst heating coils and cannot
currently function for heating the aircraft. (These units still function for cooling the aircraft.) This
work is planned to be completed by Q3 2026 using a combination of design and construction
contracts and Port of Seattle crews. These AHUs need to be replaced or refurbished as soon as
possible to reduce carbon emissions, lessen operational burden on airlines, and minimize
passenger comfort complaints.
JUSTIFICATION
These AHUs heat the aircraft during cold winter days. Without this source of heat, the aircraft
typically run their onboard jet-fuel powered auxiliary power units. Alternately, roll-up mobile
diesel AHUs may be used but SEA lacks sufficient quantities for the number of failed AHUs. This
project intends to replace the broken AHUs in a “like for like” manner to minimize the total down
time of the gates. This work maintains the Port’s goals to reduce carbon emissions from the
COMMISSION AGENDA – Action Item No. 8d Page 2 of 5
Meeting Date: June 24, 2025
Template revised June 27, 2019 (Diversity in Contracting).
aircraft auxiliary power units or ground service units and is planned to be performed as
expediently as possible to bring these gate areas back to their original functions.
Diversity in Contracting
For construction, the project team plans to utilize Unit Price contracts and the Diversity in
Contracting Department along with the project team will be conducting outreach to WMBE
businesses for awareness of the construction opportunities.
DETAILS
This project will replace or refurbish broken Preconditioned Air Handling Units at 16 gates across
the Airport, these being: A9, B1, B3, B6, B7, B8, B10, B11, B12, B14, B15, S10, D1, D3, S2, D8.
Approximately 10 units will be replaced with like-for-like units and 6 units will be refurbished. In
particular, Gate S10 is a widebody gate. One gate will be addressed at a time for installation in
order to avoid major disruptions. The project purpose is to replace and refurbish broken and
malfunctioning units in kind. It will not include any system-wide upgrades, which are being
developed separately and require more development and design to implement.
Scope of Work
Remove AHUs one gate at a time. Deliver and install/refurbish AHU equipment, using a 12 week
procurement lead time. Installation of a single unit has a duration of 5 days, during which the
aircraft gate will be out of service. Complete installation and refurbishment of the new unit and
final testing, before moving on to the next gate until all 16 have been finished.
Schedule
Activity
Commission Design & Const. Authorization 2025 Q2
Design and Procurement start 2025 Q3
Construction start 2025 Q4
In-use date 2026 Q3
Cost Breakdown This Request
Total Project
Design $0
$0
Materials and Equipment $1,654,250
$1,654,250
Construction $2,411,137
$2,411,137
Total $4,065,387
$4,065,387
COMMISSION AGENDA – Action Item No. 8d Page 3 of 5
Meeting Date: June 24, 2025
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – The AHUs across all gates would be refurbished rather than fully replaced. This
would involve using an off-site specialist supplier to provide pick up, rebuild, deliver, and final
testing of the units.
Cost Implications: This would be a cheaper solution than purchasing all new units.
Pros:
(1) Lower capital cost.
(2) Faster start to the work
Cons:
(1) Refurbished units will have a lower lifecycle of the asset than a fully replaced unit,
potentially resulting in failing units again.
(2) Refurbished units have unknown risks to functionality.
(3) Refurbishing units will have longer gate downtime and longer overall project duration
than replacement of units, and therefore worse operational impacts.
This is not the recommended alternative.
Alternative 2 – Fully replace all 16 units with new units across the gates.
Cost Implications: This is the most expensive option.
Pros:
(1) The lowest risk option regarding the operational functionality of units and potential
supplier/contractor delays.
(2) The least operationally impactful option on a per-gate basis, having a downtime of 5 days
per unit rather than 9.
(3) The second fastest delivery option.
COMMISSION AGENDA – Action Item No. 8d Page 4 of 5
Meeting Date: June 24, 2025
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) The most expensive option.
This is not the recommended alternative.
Alternative 3 – Refurbish approximately the first 6 units and fully replace the remaining 10 units
at all gates.
Cost Implications: This would be less costly than the second alternative of full replacement but
more expensive than the first alternative of full refurbishment.
Pros:
(1) Fastest completion date of any alternative.
(2) Cheaper than the full replacement alternative.
Cons:
(1) Refurbished units will have a lower lifecycle of the asset than a fully replaced unit,
potentially resulting in failing units again.
(2) Refurbished units have unknown risks to functionality.
(3) Refurbished units will have longer gate downtime than replacement of units, and
therefore slightly increased operational impacts.
This is the recommended alternative.
Cost Estimate
/Authorization Summary Capital
Expense
Total
COST ESTIMATE
Original estimate $4,065,387
$0
$4,065,387
AUTHORIZATION
Previous authorizations $0
$0
$0
Current request for authorization $4,065,387
0
$4,065,387
Total authorizations, including this request $4,065,387
0
$4,065,387
Remaining amount to be authorized $0
$0
$0
Annual Budget Status and Source of Funds
This project #C802126 was not included in the 2025-2029 capital budget and plan of finance. A
budget of $4,065,387 was transferred from the Aeronautical Allowance
1
CIP C800753 resulting
in zero net change to the Aviation capital budget. This project will be funded by the Airport
Development Fund (ADF).
Financial Analysis and Summary
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.
COMMISSION AGENDA – Action Item No. 8d Page 5 of 5
Meeting Date: June 24, 2025
Template revised June 27, 2019 (Diversity in Contracting).
Project cost for analysis $4,065,387
Business Unit (BU) Gate
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 $0.01 in 2027
Future Revenues and Expenses (Total cost of ownership)
There are no significant changes to maintenance requirements to PC Air Units.
ATTACHMENTS TO THIS REQUEST
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None
