Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8c
ACTION ITEM
Date of Meeting
November 11, 2025
DATE: October 30, 2025
TO: Stephen P. Metruck, Executive Director
FROM: Keri Stephens, Director, Aviation Facilities and Capital Programs
Eileen Francisco, Director, Aviation Project Management
SUBJECT: Deaerator (DA) and Condensate System Upgrades (CIP# C801223) –
Construction Authorization
Amount of this request:
$11,056,000
Total estimated project cost:
$14,656,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) advertise, award, and
execute a major-works construction contract for the DA and Condensate System Upgrades
project; (2) execute related project change orders, amendments, work authorizations, purchases,
contracts, and take other actions necessary to support and deliver the DA and condensate system
upgrade project within the approved budget; (3) use Port of Seattle Crews and small works
contracts to support construction activities. The amount of this request is $11,056,000 for a total
project cost not to exceed $14,656,000.
EXECUTIVE SUMMARY
The Central Mechanical Plant (CMP) uses a campus steam and condensate return system to
provide all the domestic heating and hot water for the airport terminals. The original plant, along
with the Deaerator (DA) and condensate systems, were constructed in 1969-1970. These two
systems including tanks, associated piping, and pumping are at or beyond their service life and
at risk of failure. This project will replace the DA and condensate tanks and associated equipment
to continue to provide domestic hot water and heat to the terminal.
JUSTIFICATION
The DA and condensate systems are at their end of life and suspected to be near failure due to
age and use. Failure of these systems would render the Airport unable to use the boiler system
as designed until they are replaced. This would result in a lack of hot water for the airport,
meaning restaurants and lounges would no longer be able to operate.
COMMISSION AGENDA – Action Item No. __8c__ Page 2 of 5
Meeting Date: November 11, 2025
Template revised June 27, 2019 (Diversity in Contracting).
Diversity in Contracting
The design service is using a project specific designer with a diversity in contracting commitment
of 19%. The consultant is on track to exceed that commitment with a project utilization of 24%.
The WMBE aspirational goal analysis for construction is 5% due to a large percentage of the
construction cost being the equipment installed for the project.
DETAILS
Scope of Work
Work will include the demolition of existing obsolete equipment, installation and commissioning
of the new equipment, and removal of the old systems. These components include, but are not
limited to, the following:
(1) Conduct abatement of regulated materials (existing tanks and associated piping are
known to be wrapped in asbestos insulation).
(2) Remove and dispose of the boiler room air handling unit to create space for the new DA
and condensate tanks and equipment.
(3) Remove and dispose of the obsolete air compressors and the associated equipment to
create space for the new DA and condensate tanks and equipment.
(4) Install the new the DA and condensate tanks, piping, and equipment necessary to
replace the existing system.
(5) Install new feedwater and condensate pumps (6 pumps total).
(6) Install new Variable Frequency Drives (VFD's) and controls to improve efficiency.
(7) Perform foundation upgrades as required, per new building codes, to support new
tanks, equipment, and platform.
(8) Construct a platform around the new tanks and a new catwalk platform around the
boilers’ steam header for ease of maintenance and safety.
(9) After the installation and commissioning of the new equipment, remove the obsolete
DA and condensate tanks, pumps, piping, the structural platform the tanks are mounted
on, and all other out-of-use equipment.
Schedule
Activity
Commission construction authorization
Construction start
In-use date
Cost Breakdown
This Request
Total Project
Design
$0
Construction
$11,056,000
Total
$11,056,000
COMMISSION AGENDA – Action Item No. __8c__ Page 3 of 5
Meeting Date: November 11, 2025
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Defer project to a later date or cancel project.
Cost Implications: Expense approximately $2,000,000 for design development costs if project is
cancelled.
Pros:
(1) Defer major capital investment costs.
Cons:
(1) System failure could occur at any time resulting in large expenses for emergency repairs
and shutdowns to restaurants, lounges, and other tenant owned spaces.
(2) If a failure occurred, shutdown duration is unknown due to lead times and replacement
timeline
(3) Potential for additional costs increases for materials and labor due to inflation.
This is not the recommended alternative.
Alternative 2 – Maintain the full scope of the project and replace the entire DA and condensate
systems.
Cost Implications: $14,656,000
Pros:
(1) Mitigate the potential for failures that negatively affect the operation of the boiler
system that supports heating and hot water for the airport.
(2) Improve efficiency over existing systems.
(3) Increase reliability and decrease maintenance costs.
(4) Mitigate hazardous materials in the Central Mechanical Plant.
Cons:
(1) Large capital expense.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. __8c__ Page 4 of 5
Meeting Date: November 11, 2025
Template revised June 27, 2019 (Diversity in Contracting).
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$9,805,000
$0
$9,805,000
Previous changes – net
$14,444,000
$212,000
$14,656,000
Current change
0
0
0
Revised estimate
$14,444,000
$212,000
$14,656,000
AUTHORIZATION
Previous authorizations
$3,600,000
0
$3,600,000
Current request for authorization
$10,844,000
$212,000
$11,056,000
Total authorizations, including this request
$14,444,000
$212,000
$14,656,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
The DA and Condensate System Upgrades C801223 is included in the 2025-2029 capital budget
and plan of finance with a budget of $14,656,000. The funding sources are the Airport
Development Fund (ADF) and future bonds.
Financial Analysis and Summary
Project cost for analysis
$14,656,000
Business Unit (BU)
Terminal Building
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
$0.04 in 2029
Future Revenues and Expenses (Total cost of ownership)
Operation and recurring maintenance costs will be budgeted within the Aviation Maintenance
department’s operating budget. As a result of this project, Aviation Maintenance may see a small
increase in preventative maintenance support.
ADDITIONAL BACKGROUND
The CIP, C801223, includes two separate work projects, N06480 – DA and Condensate System
Upgrades and N10295 – CMP Secondary Air Compressor. N10295 was a precursor to N06480 and
installed a second air compressor in May 2025.
COMMISSION AGENDA – Action Item No. __8c__ Page 5 of 5
Meeting Date: November 11, 2025
Template revised June 27, 2019 (Diversity in Contracting).
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
April 18, 2023 – The Commission authorized for the Executive Director to (1) increase the
project budget by $4,639,000, for a revised total budget of $14,656,000; (2) design and
prepare construction bid documents for the DA and Condensate Project (N06480); (3)
prepare and award a construction contract for the CMP Secondary Air Compressor Project
(N10295), for a total amount of $3,600,000.