Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM Item No. 8c
ACTION ITEM Date of Meeting December 9, 2025
DATE: November 21, 2025
TO: Stephen P. Metruck, Executive Director
FROM: Keri Stephens, Director, Aviation Facilities and Capital Programs
Eileen Francisco, Director, Aviation Project Management
SUBJECT: Boiler Room Upgrades (CIP# 801230) – Construction Authorization
Amount of this request: $3,320,000
Total estimated project cost: $4,839,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) advertise, award, and
execute a major works construction contract, and execute related project change orders,
amendments, work authorizations, purchases, contracts, (2) take other actions necessary to
support and deliver the Boiler Room Upgrades project within the approved budget, and (3) utilize
Port of Seattle crews to support design and construction activities. The amount of this request is
$3,320,000 for an estimated total project cost not to exceed $4,839,000.
EXECUTIVE SUMMARY
The central mechanical plant (CMP) provides airport-wide steam and chilled water for cooling,
heating, and hot water purposes. Upon completion, this project will upgrade the control systems
for Boilers #1 through #3 to replace the obsolete equipment and software with a common
platform that can integrate into the existing Siemens Direct Digital Control (DDC) system. This
project will also install/replace steam supply and fuel flow meters on Boilers #1 through #3, as
well as install a steam outlet meter on Boiler #4, which will improve energy use tracking and
accuracy for the overall system, leading to better optimization and efficiency savings.
JUSTIFICATION
The CMP, which houses the boiler and chiller systems, provides the steam and chilled water
necessary for providing cooling, heating, and hot water to the main terminal, concourses, and
North and South satellites. It is an essential element of the airport, and it is critical that it operates
in a consistent and efficient manner with the ability to continuously optimize. In recent winters,
failures of old boiler controls components unexpectedly caused boiler failures necessitating
urgent repairs to restore boiler redundancy and ensure sufficient heating capacity. This illustrates
COMMISSION AGENDA – Action Item No. 8c Page 2 of 4
Meeting Date: December 9, 2025
Template revised June 27, 2019 (Diversity in Contracting).
the necessity for an efficient, resilient, and redundant system. This project will replace aging
components of the boiler system, some of which are over 50 years old, to ensure continued
reliability, as well as to increase its overall energy efficiency and environmental tracking accuracy.
Additionally, the boiler system controls will be updated for better connectivity to the CMP control
room.
Diversity in Contracting
In coordination with the Diversity in Contracting Department, a 6% WMBE aspirational goal has
been set for this project.
DETAILS
Scope of Work
This project will resolve fuel and steam metering issues present on Boilers #1 through #3.
Additionally, the control systems for boilers #1 through #3 will be upgraded to include Siemens
DDC integration with Building Automation and Control Network (BACnet) Protocol.
(1) Install new and replace old steam supply, natural gas, and diesel fuel flow meters on
Boilers #1 through #3.
(2) Install new steam outlet meter for Boiler #4.
(3) Upgrade control systems on Boilers #1 through #3 to include Building Automation
System and Siemens DDC.
(4) Design modification for a permanent compressed air supply for long term operation and
startup under emergency conditions.
(5) Install additional emergency shut down buttons for boiler system where absent at
operator station and corridor exits to increase operational safety.
Schedule
Construction start Q2 2026
In-use date Q2 2027
Cost Breakdown This Request Total Project
Design $0 $1,519,000
Construction $3,320,000 $3,320,000
Total $3,320,000 $4,839,000
COMMISSION AGENDA – Action Item No. 8c Page 3 of 4
Meeting Date: December 9, 2025
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not proceed with the project.
Cost Implications: Approximately $1,519,000 for Notebook Development and Design.
Pros:
(1) Defers some capital investment.
(2) A design with up-to-date schematics of the Central Mechanical Plant has been
completed, which can be utilized for future projects, if needed.
Cons:
(1) Aging and inaccurate components will remain, leading to potential reliability issues.
(2) Boiler system cannot be properly optimized with the existing equipment, meaning the
system will continue operating with reduced efficiency.
(3) Unable to provide accurate data and tracking for environmental reporting purposes.
(4) Lack of emergency shut down buttons at Central Mechanical Plant exits.
(5) Potential for additional increase in costs for materials, labor, and inflation if project
completed at a later date.
This is not the recommended alternative.
Alternative 2 – Proceed with project as scoped. Install equipment needed for reliability, accuracy,
and connectivity.
Cost Implications: $4,839,000 in capital costs.
Pros:
(1) Replaces aging and inaccurate equipment, leading to increased reliability.
(2) New fuel flow and output meters will provide more accurate system data, allowing for
better efficiency and cost savings.
(3) Updated control panels and DDC connectivity will allow for better energy tracking,
optimization, and reporting for environmental purposes.
(4) Install new emergency shut off buttons at Central Mechanical Plant exits.
Cons:
(1) Capital costs.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 8c Page 4 of 4
Meeting Date: December 9, 2025
Template revised June 27, 2019 (Diversity in Contracting).
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary Capital Expense Total
COST ESTIMATE
Original estimate $3,406,000 $0 $3,406,000
Previous changes – net $1,433,000 $0 $1,433,000
Current change 0 0 0
Revised estimate $4,839,000 $0 $4,839,000
AUTHORIZATION
Previous authorizations $1,519,000 $0 $1,519,000
Current request for authorization $3,320,000 $0 $3,320,000
Total authorizations, including this request $4,839,000 $0 $4,839,000
Remaining amount to be authorized $0 $0 $0
Annual Budget Status and Source of Funds
The Boiler Room Upgrade (CIP# 801230) is included in the 2025-2029 capital budget and plan of
finance with a budget of $4,839,000. The funding sources will be the Airport Development Fund.
Financial Analysis and Summary
Project cost for analysis $4,839,000
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 $0.01 in 2028
Future Revenues and Expenses (Total cost of ownership)
This project will likely have no impact on Aviation Maintenance operating & maintenance (O&M)
costs.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
May 23, 2023 – The Commission authorized the Executive Director to (1) prepare design and
construction bid documents for the Boiler Room Upgrades project; (2) utilize Port of
Seattle crews to support design and pre-construction activities. The amount of the
request was $1,479,000 and was approved as Item No. 8c.
