Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM Item No. 8e
ACTION ITEM Date of Meeting November 18, 2025
DATE: November 6, 2025
TO: Stephen P. Metruck, Executive Director
FROM: Keri Stephens, Director of AV Facilities & Capital Programs
Eileen Francisco, Director, Aviation Project Management Group
SUBJECT: Parking Garage Elevator Modernization (PGEM) C800789
Amount of this request: $ 3,937,000.00
Total project cost: $ 27,027,000.00
ACTION REQUESTED
Request Commission authorization for the Executive Director to increase the project budget by
$3,937,000 for a final revised total budget of $27,027,000.
EXECUTIVE SUMMARY
The Airport Parking Garage elevators provide vertical circulation services for millions of airport
parking and ground transportation customers every month. Continued and reliable operations of
these systems are vitally important to the traveling public, as well as Airport operations. The
project replaces worn end-of-life elevator components with modern, energy-efficient systems in
all five elevator cores in the Parking Garage. Extended contract durations due to unanticipated
existing conditions such as structural modification and accommodation, fire/life safety upgrades,
and other infrastructure modifications, are supported by the requested additional funding.
JUSTIFICATION
This project provides for continued reliable vertical circulation services within the Airport Parking
Garage for the next ten plus years, while reducing repair costs and decreasing energy
consumption. The modernized elevators will use energy efficient regenerative drives that use
less energy and produce less waste heat. The total energy saving estimate is 56,000 to 211,000
kilowatt hours (kWh) per year. While this energy reduction represents just approximately 0.1
percent of the total airport electrical energy consumption, the project will contribute to the
Port’s goal to be the greenest and most energy efficient port in North America. Additionally, this
project will contribute to the Port’s Long-Range Plan to improve customer service.
COMMISSION AGENDA – Action Item No. 8e Page 2 of 4
Meeting Date: November 18, 2025
Template revised June 27, 2019 (Diversity in Contracting).
Diversity in Contracting
The project staff, in coordination with the Diversity in Contracting Department, have set a 5%
woman and minority-owned business enterprise (WMBE) aspirational goal for this construction
contract.
DETAILS
Scope of Work
Parking Garage Elevator Cores B and C were last modernized 30 years ago and will be replaced
due to age (motors, drives, controls, and electrical gear). Elevator Banks D and E were installed
approximately 20 years ago and require new motor drives. Elevator Bank A was more recently
modernized and is in good working condition. All 27 elevators in the Parking Garage will all be
refinished: new call buttons, interior lighting and cab finishes. All these modifications will
enhance customer experience and maintain the operational integrity of the vertical conveyance
system within the airport parking garage.
Schedule
Activity
Substantial Completion 2026 Quarter 3
Cost Breakdown – Phase 1
This Request Total Project
Design $0 $ 595,000
Construction $0 $ 2,755,000
Total $0 $ 3,350,000
Cost Breakdown – Phase 2
This Request Total Project
Design $0 $ 5,411,000
Construction $ 3,937,000 $ 18,266,000
Total $ 3,937,000 $ 23,677,000
Cost Breakdown (Combined Phase 1 & 2) This Request Total Project
Design $ 0 $ 6,006,000
Construction $ 3,937,000 $ 21,021,000
Total $ 3,937,000 $ 27,027,000
COMMISSION AGENDA – Action Item No. 8e Page 3 of 4
Meeting Date: November 18, 2025
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Maintain full project scope and complete all work as planned.
Cost Implications: $ 3,937,000
Pros:
(1) All elevators of the Parking Garage will be completed to enhance passenger experience
(2) Allows for the replacement of existing elevators that are at the end-of-life condition
(3) Maintain the Port’s overall design theme
Cons:
(1) Additional capital expenditure
This is the recommended alternative.
Alternative 2 – Stop construction activities prior to completion. Do not complete full project
scope.
Cost Implications: $23,090,000
Pros:
(1) None
Cons:
(1) The project cannot be completed as planned. High risk of elevator failure; high risk of
negative impact to airport operations and passenger service.
This is not the recommended alternative.
FINANCIAL IMPLICATIONS
C
ost Estimate/Authorization Summary Capital Expense Total
COST ESTIMATE
Original estimate $ 23,276,000 $0 $ 23,276,000
Previous changes – net $ (180,000) $ 180,000 0
ART Transfer $ (186,000) 0 $ (186,000)
Current Change $ 3,937,000 $ 3,937,000
Revised estimate $ 26,847,000 $ 180,000 $ 27,027,000
AUTHORIZATION
Previous authorizations $ 23,096,000 $ 180,000 $ 23,276,000
ART Transfer $ (186,000) 0 $ (186,000)
Current request for authorization $ 3,937,000 $ 3,937,000
Total authorizations, including this request $ 26,847,000 $ 180,000 $ 27,027,000
Remaining amount to be authorized $0 $0 $0
COMMISSION AGENDA – Action Item No. 8e Page 4 of 4
Meeting Date: November 18, 2025
Template revised June 27, 2019 (Diversity in Contracting).
Annual Budget Status and Source of Funds
The Parking Garage Elevator Modernization project (C800789) is included in the 2025-2029
capital budget and plan of finance with a budget of $22,910,000 for all phases. A budget increase
of $3,937,000 was transferred from C8000754 Non-aeronautical Reserves resulting in no net
change to the Aviation capital Budget. The funding source would be the Airport Development
Fund and revenue bonds.
Financial Analysis and Summary
Project cost for analysis $ 27,027,000
Business Unit (BU) Parking
Effect on business performance
(NOI after depreciation)
NOI after depreciation will decrease
IRR/NPV (if relevant) N/A
CPE Impact N/A
Future Revenues and Expenses (Total cost of ownership)
The renovation is expected to reduce future repair costs and increase the operational availability
of the system. The estimated useful life will be extended for all 27 elevators located in the parking
garage. The new elevators in Sections B and C (10 elevators total) will have a useful life of
approximately 20 years, while the remaining 17 elevators located in Sections A, D, and E will have
a useful life of 10 years.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
July 28, 2020 – Commission authorization for the construction contract for the second phase of
work.
October 22, 2019 –Commission authorization for the construction of the first phase of work.
January 22, 2019 – Commission authorization for the design of the second phase of work.
May 8, 2018 – Commission authorization for the design of the first phase of work.
