COMMISSION AGENDA MEMORANDUM Item No. ACTION ITEM Date of Meeting 8j August 12, 2025 DATE : August 4, 2025 TO: Stephen P. Metruck, Executive Director FROM: Mark Leutwiler, Interim Director of Airport Operations Eileen Francisco, Director of Aviation Project Management Group SUBJECT: S. 160th St TNC Lot Improvements (CIP# 801186) Amount of this request: Total estimated project cost: $1,100,000 $8,400,000 ACTION REQUESTED Request Commission authorization for the Executive Director to take all steps necessary to complete the South 160th Street TNC Lot Improvement Project at Seattle-Tacoma International Airport (SEA). This request is an increase in the amount of $1,100,000 for a total authorization of $8,400,000. EXECUTIVE SUMMARY The Port-owned South 160th Street Ground Transportation (GT) holding lot is used by taxis and Transportation Network Companies (TNC) such as Uber and Lyft for vehicle staging. Previous authorizations supported the construction of permanent lighting systems, restrooms, security cameras, landscaping, and electrical infrastructure upgrades supporting the installation of ten electrical vehicle (EV) fast charging points. This work has been completed. The original project scope assumed a partnership with EVgo to supply and install the equipment and software, provide maintenance and operational support, and other general management tasks for the EV fast charging points. Both the electrical infrastructure upgrades and the EV fast charging points were partially funded by a Department of Commerce (DOC) grant. After the grant was awarded, the Port and EVgo began lease negotiations. Ultimately the Port and EVgo could not reach agreement on the lease terms and the partnership with EVgo was terminated. To support the Commission's Ground Transportation Policy Directive (Resolution no. 3759, adopted in July 2019), take advantage of the available grant funds, and complete the installation of the EV fast charging points the Port needs to change delivery methods instead of relying on a third-party partner. This authorization request supports the purchase and installation of EV equipment and software to complete the installation of the EV fast charging points by the Port. Template revised January 10, 2019. COMMISSION AGENDA - Action Item No. 8j Meeting Date: August 12, 2025 Page 2 of 5 JUSTIFICATION This project supports the following Century Agenda goals: • 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. • To be the greenest and most energy-efficient port in North America by reducing air pollutants and carbon emissions.  To become a model for equity, diversity, and inclusion by increasing utilization of Women and Minority Business Enterprise (WMBE) and Disadvantage Business Enterprise (DBE) firms and eliminating disparity of access to opportunities. 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 construction of this project included a WMBE commitment of ten (10) percent. DETAILS The Port has an agreement with the TNC partners to improve the operating conditions for drivers and support sustainability improvements between the parties. The EV chargers and permanent restrooms support this agreement, and equity goals and helps deliver sustainability improvements as documented in a December 10, 2020, letter from the Managing Director of Aviation to the TNC partners. The project will install ten EV fast charging points utilizing a $1.2 million DOC grant that partially funds the installation of the EV chargers and the required electrical infrastructure upgrades. The project team intends to utilize a Washington State Department of Enterprise Services contract to procure the EV chargers and software subscriptions, and to provide operational and maintenance support. The change in project scope and approach has been reviewed with DOC and they support the changes and will extend the grant funding through year-end 2025. Port Construction Services will also be utilized to provide some site improvements supporting the installation of the EV chargers. Scope of Work Most of the project improvements have been completed. Permanent lighting systems have been installed replacing the temporary diesel-powered temporary light plants. Four permanent restrooms and security cameras have been installed supporting TNC operations. Electrical infrastructure upgrades have been completed supporting the permanent lighting and the EV chargers. Landscaping improvements were completed in accordance with the Port's landscaping standards. The remaining scope of work includes the installation of ten EV fast charging points and site improvements to support the installation. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8j Meeting Date: August 12, 2025 Page 3 of 5 Schedule Activity Procure EV Chargers Complete Site Improvements Install and Activate EV Chargers In-use date 2025 Quarter 3 2024 Quarter 4 2024 Quarter 4 2025 Quarter 4 Cost Breakdown This Request Total Project Design Construction Total $0 $1,100,000 $8,400,000 $1,417,000 $6,983,000 $8,400,000 ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 - Do not install EV Chargers Cost Implications: $0 Pros: (1) Cons: (1) (2) No Additional Capital Investment Forfeits DOC $1.2 million grant reimbursement Does not support Commission Ground Transportation Policy Directive or Century Agenda goals This is not the recommended alternative. Alternative 2 - Purchase and install EV chargers from State contract and advertise and procure management agreement to support operations and maintenance needs Cost Implications: $1,100,000 Pros: (1) (2) Cons: (1) (2) Aligns with Commission Ground Transportation Policy Directive and Century Agenda goals Provides EV charger maintenance and management reducing Port oversight Requires additional capital investment Forfeits DOC $1.2 million grant reimbursement since the work cannot be completed by year-end 2025 This is not the recommended alternative. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8j Meeting Date: August 12, 2025 Page 4 of 5 Alternative 3 - Purchase and install EV chargers and procure operational and maintenance support through the State contract Cost Implications: $1,100,000 Pros: (1) (2) Aligns with Commission Ground Transportation Policy Directive and Century Agenda goals Utilizes DOC $1.2 million grant reimbursement Cons: (1) (2) Requires additional capital investment Requires additional Port oversight to manage operational and maintenance contracts This is the recommended alternative. FINANCIAL IMPLICATIONS Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Original estimate Previous changes Current change Revised estimate $3,728,000 $3,062,000 $1,610,000 $8,400,000 $0 $510,000 ($510,000) $0 $3,728,000 $3,572,000 $1,100,000 $8,400,000 AUTHORIZATION Previous authorizations Current request for authorization Total authorizations, including this request $6,790,000 $1,610,000 $8,400,000 $510,000 ($510,000) $0 $7,300,000 $1,100,000 $8,400,000 Annual Budget Status and Source of Funds This project (CIP #C801186) was included in the 2025-2029 capital budget and plan of finance with a budget of $6,790,000. A capital budget increase of $1,610,000 was transferred from the Non-Aeronautical Allowance (CIP #C800754) for a total revised capital budget of $8,400,000 resulting in zero net change to the Aviation capital budget. The funding sources for this project will be grants, Airport Development Fund (ADF), and revenue bonds. The DOC grant will reimburse up to $1,229,322.42 of the project costs. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8j Meeting Date: August 12, 2025 Page 5 of 5 Financial Analysis and Summary Project cost for analysis Business Unit (BU) Effect on business performance (NOI after depreciation) IRR/NPV (if relevant) CPE Impact $8,400,000 Ground Transportation NOI after depreciation will decrease N/A - No additional revenues are anticipated from this investment. N/A Future Revenues and Expenses (Total cost of ownership) As a result of this project, we anticipate moderate impacts resulting in increased annual O&M costs. The new restrooms will add additional costs for custodial services and maintenance. The expanded landscaping will also result in a minor increase to landscape maintenance costs. The EV fast charging points will add additional costs for the maintenance and operational agreements and will require Port oversight to manage. Ground transportation operators will pay a fee to use the ten EV fast charging points once installed. Port staff anticipate setting the fee at a competitive market rate and those revenues are anticipated to offset the cost of the EV fast charging points. ATTACHMENTS TO THIS REQUEST (1) Presentation slides PREVIOUS COMMISSION ACTIONS OR BRIEFINGS September 28, 2021 - The Commission authorized $1,417,000 supporting design and execution of utility agreements. February 14, 2023 - The Commission authorized $6,083,000 supporting the advertisement, award, and execution of a construction contract. Template revised June 27, 2019 (Diversity in Contracting).