Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No. 10a
ACTION ITEM Date of Meeting July 8, 2025
DATE: June 26, 2025
TO: Stephen P. Metruck, Executive Director
FROM: Eileen Francisco, Director, Aviation Project Management
Keri Stephens, Director, Aviation Facilities and Capital Programs
SUBJECT: Concourse HVAC Infrastructure Renewal Replacement Project (CHIRRP) – CIP#
C801265 GC/CM and Pre-Construction Services
Amount of this request: $11,000,000
Total estimated project cost:
$255,000,000
$450,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) advertise and execute a
General Contractor, Construction Manager (GC/CM) construction contract and authorize pre-
construction services for CIP# C801265. The amount requested under this authorization is
$11,000,000 for a total project authorization of $18,250,000.
EXECUTIVE SUMMARY
The primary focus of the Concourse heating, ventilation, and air conditioning (HVAC)
Infrastructure Renewal Replacement Program (CHIRRP) is the replacement of the existing HVAC
systems and the addition of smoke control systems within concourses B, C and D. In addition, the
project includes ceiling and lighting renewal as well as structural work to support the new
penthouses. This project is necessary to maintain continued airport operations and correct code
deficiencies that have been impacting planning efforts for the Airport Dining and Retail (ADR),
Restroom Renovations, and Concourse Modernization programs. The total estimated project
cost is currently $255,000,000 - $450,000,000. The project will return to Commission for full
design authorization after 30% design is complete. Project costs and scope will be further
developed and refined with the current 30% design effort. The general contractor pre-
construction services authorization being requested at this time will be critical in determining the
final budget and schedule.
JUSTIFICATION
The Port recently completed preliminary conceptual design of CHIRRP, some elements of the
design scope present risks to overall cost and schedule (gate closures, supplemental AHUs,
COMMISSION AGENDA – Action Item No. 10a Page 2 of 6
Meeting Date: July 8, 2025
Template revised June 27, 2019 (Diversity in Contracting).
working on the roof, cranes, etc.). The requested authorization will provide for GC/CM pre-
construction services, enabling improved project cost, schedule, and phasing resolution. The plan
is to utilize the GC/CM early in the design phase to further evaluate constructability concerns, as
well as provide input and feedback on cost saving measures, cost estimates, and schedule. This
project has potential to be very disruptive to airport operations and will require complex
execution and phasing. The GC/CM early involvement in design development and decisions will
help to ensure construction impacts to Airport Operations will be minimized. The 30% design is
scheduled to be complete Q2, 2026. This authorization is necessary to ensure adequate
participation by the GC/CM in the 30% design development.
The Port’s goal for the project is to renew and replace end-of-life mechanical equipment and
systems while providing adequate future capacity for Port programs. This includes integration of
the Port’s Sustainable Project Framework to ensure that sustainability and sustainable design
alternatives and options are evaluated early in the planning and design process so the project
can leverage sustainability options to the greatest extent possible, reducing maintenance
requirements, and prolonging the life of the facility. The project will comply with current
International Building Code (IBC) and fire code for existing structures and will enhance passenger
comfort. The project will also address regulatory requirements such as compliance with
Washington Clean Buildings Standards, work to reduce SEA’s footprint and lowering costs, as well
as compatibility with decarbonization efforts in the Central Plant.
Diversity in Contracting
The project team in coordination with Diversity in Contracting team has set a 17% women-and
minority-owned business enterprise (WMBE) aspirational goal for the design contract for this
project.
DETAILS
Requested funds will be used to develop/support:
GC/CM support to prepare design and construction documents from 30% to issue for
construction
Pre-construction work packages
This commission action will provide for GC/CM contract execution and pre-construction support
services through the duration of the design.
Scope of Work
Concourse HVAC Infrastructure Renewal Replacement Program will focus on HVAC replacement,
ceiling and lighting replacement, ceiling mounted fixtures replacement and Fire code (smoke
control exhaust and sprinklers).
The scope of work will include:
COMMISSION AGENDA – Action Item No. 10a Page 3 of 6
Meeting Date: July 8, 2025
Template revised June 27, 2019 (Diversity in Contracting).
(1) Replacement of existing air handlers on concourse B, C and D.
(2) Addition of supplemental air handlers during change outs.
(3) Sizing adjustment of select terminal units for air distribution.
(4) Upsizing chilled water and hydronic heating water distribution. Heat trace on chilled
water line on the roof.
(5) Emergency power system upgrades (panels, distribution gear, and step-down
transformers. At a minimum, two separate power sources.)
(6) Addition of active smoke control and/or smoke management systems.
(7) Distribution ducting upsizing as required, including ceiling diffusers.
(8) Ceiling replacement within the concourses (not including hold rooms).
(9) Structural upgrade to support new Penthouses, plus seismic upgrades required by the
latest building code.
(10) Fire sprinklers and fire riser upgrades.
(11) Refreshed exit signage.
(12) Column cover replacements as needed.
(13) Upgraded lighting to LED & new lighting control systems.
(14) Waste and ventilation pipe replacement where impacted.
(15) Security camera updates.
(16) Demolition of abandoned conduit & utilities.
(17) Compliance with upcoming State of Washington Clean Buildings Performance Standard
will identify energy efficiency measures that may need to be added to CHIRRP’s scope
for implementation.
Schedule
The current project schedule shows an in-use date Q3 2034. The dates shown below are based
on conservative assumptions in procurement, permitting, and construction. Options to further
compress the schedule will be evaluated during the planning phase.
Activity
Construction starts 2029 Quarter 1
In-use date 2034 Quarter 3
Cost Breakdown This Request
Total Project
Design $11,000,000
TBD in 30% Design
Construction 0
TBD in 30% Design
Total $11,000,000
$255M-$450M
COMMISSION AGENDA – Action Item No. 10a Page 4 of 6
Meeting Date: July 8, 2025
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Status Quo, Do not proceed with this project.
Cost Implications: Approximately $2,108,028 would need to be expensed.
Pros:
(1) No further capital investment required at this time.
Cons:
(1) Passenger comfort would continue to worsen.
(2) AHU(s) failures will lead to extended outages (months).
(3) High risk shutdown of concourse/s due to poor air quality.
(4) High risk of emergency repairs required to maintain airport operations.
(5) No Smoke Control on Concourses may result in complete evacuation in the event of
minor fires.
This is not the recommended alternative.
Alternative 2 - Full Design – Complete concourse B, C and D.
Pros:
(1) Improved passenger comfort.
(2) All concourses, smoke control exhaust and sprinklers included.
(3) All concourses, spare capacity to add additional kitchen exhaust, bathroom exhaust, etc.
(4) Allows for the Central Plant decarbonization effort - reduces SEA carbon footprint.
(5) Qualify for rebates for the updated AHUs and new lighting.
(6) New lighting provides improved illumination in dark areas on the concourses.
(7) Most structural columns will be updated with seismic.
Cons:
(1) Large capital investment.
(2) Construction expected to take 3 years.
(3) Extensive coordination required during construction.
This is the recommended alternative.
Alternative 3 - Build to Budget – cut/defer scope with temporary measures proposed to phase
or delay capital spending.
Pros:
(1) Better passenger comfort in the areas updated.
(2) Fire protection, sprinklers, and smoke control would exist in those areas like
Concourse A.
COMMISSION AGENDA – Action Item No. 10a Page 5 of 6
Meeting Date: July 8, 2025
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) Risk shutdown of concourse due to poor air quality.
(2) Large Capital investment is required.
(3) Some essential scope may need to be eliminated. This may result in equipment failures
and emergency repairs leading to extended outages.
(4) Project execution would need to be highly coordinated between airlines and
operations.
(5) Requires future project to complete full scope.
(6) Highest Life Cycle Cost.
This is not the recommended alternative.
FINANCIAL IMPLICATIONS
Following a third-party cost estimate, as part of the 30% Design, the project will update the
revised estimate for total project cost.
Cost Estimate
/Authorization Summary Capital
Expense
Total
COST ESTIMATE
Original estimate $255,000,000
$0
$255,000,000
Current Budget Estimate TBD
$0
$0
Revised estimate TBD
$0
$255,000,000
-
$450,000,000
AUTHORIZATION
Previous authorizations $7,250,000
$0
$7,250,000
Current request for authorization $11,000,000
$0
$11,000,000
Total authorizations, including this request $18,250,000
$0
$18,250,000
Remaining amount to be authorized TBD
$0
TBD
Annual Budget Status and Source of Funds
This project #C801265 was included in the 2025-2029 capital budget and plan of finance with
budget of $255,000,000. This project will be funded by the Airport Development Fund (ADF)
and revenue bonds.
Financial Analysis and Summary
Project cost for analysis $255,000,000 - $450,000,000
Business Unit (BU) Terminal Building
COMMISSION AGENDA – Action Item No. 10a Page 6 of 6
Meeting Date: July 8, 2025
Template revised June 27, 2019 (Diversity in Contracting).
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 $0.63 to $1.08 in 2032
Future Revenues and Expenses (Total cost of ownership)
Aviation Operations and Maintenance have reviewed the preliminary design of the system, and
meetings have been held with leadership from each group to discuss expected additional costs
of ownership. A full evaluation of the future expenses will be provided with the completed
Project Notebook.
ATTACHMENTS TO THIS REQUEST
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
March 14, 2023 (item 8k) – The Commission authorized the Executive Director to (1) advertise
and execute a project specific contract for Architecture and Engineering (A&E) services,
(2) develop a Project Definition Document and progress the overall design to 30%, (3)
utilize port crews for enabling work related to the Concourse HVAC Infrastructure
Renew/Replace (CHIRRP) project at Seattle-Tacoma International Airport. The amount
being requested under this authorization was $7,250,000.
