Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8f
ACTION ITEM
Date of Meeting
August 11, 2026
DATE: August 4, 2026
TO: Stephen P. Metruck, Executive Director
FROM: Keri Stephens, Director, AV Facilities & Capital Programs
Eileen Francisco, Director, AV Project Management Group
SUBJECT: Terminal Envelope Upgrade – Roof Replacement Project (C801236)
Amount of this request:
$6,685,000
Total estimated project cost:
$7,585,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to take all steps necessary to
complete the Central Terminal Roof Replacement project at Seattle-Tacoma International
Airport. This single authorization request is for $6,685,000 of a total authorization of $7,585,000.
EXECUTIVE SUMMARY
At the airport main terminal fourth floor surrounding the ramp tower, water intrusion has
damaged the interior. This project was contracted with design professionals that completed
extensive forensic investigation reports to identify the water infiltration locations and building
elements that must be replaced to stop the problem. Based on Port review of the reports, the
project scope of work will target the roof areas of the terminal central zone that are in the most
critical condition for renewal and replacement. Left unaddressed, this water intrusion will
continue to damage interior spaces and potentially compromise the building underlying
structural elements. The purpose of the project is to stop the water intrusion by replacing the
roof.
JUSTIFICATION
This project supports the Port’s Century Agenda goals related to operational excellence, safety,
and efficient use of capital assets by making the building function to keep out the water:
(1) protect the building structure and prevent damage to the building underlying structural
elements
(2) preserve the quality of the environment for people working in the space below
(3) reduce recurring staffing and maintenance costs
COMMISSION AGENDA – Action Item No. 8f Page 2 of 5
Meeting Date: August 11, 2026
Template revised June 27, 2019 (Diversity in Contracting).
It also aligns with Commission priorities to maintain safe, secure, and efficient airport operations.
This request is important due to the risks of water damage to the building and the continued
requirement for ongoing maintenance and impacts on employees working in the offices below.
Delaying replacement extends unnecessary maintenance expenditures.
Diversity in Contracting
The IDIQ design services contract for this project has a Diversity in Contracting aspirational goal
of 21%. With authorization, the project will execute the design services contract that is
anticipated to exceed the goal with WMBE utilization of 22.21%. The construction contract for
this project will have a Diversity in Contracting aspirational goal of 7%.
DETAILS
This project will be designed and constructed to budget using a Design-Bid-Build delivery method
and a Major Works construction contract. The project will replace roofing at a small percentage
of the main terminal central zone.
The large expanse of terminal roofing that is not part of this project is being continuously
assessed as part of the Aviation Division renewal and replacement capital program. This program
has been ongoing based on age and assessment of the roofing system and associated warranties,
coupled with inspections that provide quality evaluations for the capital renewal program.
A separate Small Works project (not this project) will do immediate roof repairs to a different
and much smaller area of roof this year.
Scope of Work
Demolish and replace approximately 13,600 SF of roofing membrane and insulation, along with
associated flashing and roof drains.
Schedule
Activity
Commission design and construction authorization
2026 Quarter 3
Design start
2026 Quarter 3
Construction start
2028 Quarter 1
In-use date
2028 Quarter 4
This Request
Total Project
Design
$400,000
$1,300,000
Construction
$6,285,000
$6,285,000
Total
$6,685,000
$7,585,000
COMMISSION AGENDA – Action Item No. 8f Page 3 of 5
Meeting Date: August 11, 2026
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not replace the roofing system
Cost Implications: $840,000 (costs to date)
Pros:
(1) Funds can be used for other projects at the Port
Cons:
(1) Does not stop the water infiltration
(2) Water will damage the building structure
(3) Building occupants may be subject to contaminants like mold
This is not the recommended alternative.
Alternative 2 – Complete the design only, but do not construct
Cost Implications: $1,700,000
Pros:
(1) Reduced funds for this project can be used for other Port projects
(2) Construction could be done in the future if more funds are available
Cons:
(1) Does not stop the water infiltration
(2) Does not protect the building structure from water damage
(3) Building occupants may be subject to contaminants like mold
This is not the recommended alternative.
Alternative 3 – Design and construct the roof system replacement
Cost Implications: $7,585,000
Pros:
(1) Stops the water infiltration
(2) Protects the building structure from water damage
Cons:
(1) Funds will not be available for other Port projects
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 8f Page 4 of 5
Meeting Date: August 11, 2026
Template revised June 27, 2019 (Diversity in Contracting).
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$7,585,000
$0
$7,585,000
AUTHORIZATION
Previous authorizations
$900,000
$0
$900,000
Current request for authorization
$6,685,000
$0
$6,685,000
Total authorizations, including this request
$7,585,000
$0
$7,585,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project, CIP C801236 was included in the 2026-2030 capital budget and plan of finance with
a capital budget of $7,585,000. The project will be funded by the Revenue bonds, and Airport
Development Fund.
Financial Analysis and Summary
Project cost for analysis
$7,585,000
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 the airline rate base.
IRR/NPV (if relevant)
N/A
CPE Impact
$0.02 in 2029
Future Revenues and Expenses (Total cost of ownership)
This building area was last reroofed in 2008. The roof has outlived its useful service life and needs
to be fully replaced. The Port has incurred costs responding to water intrusions inside the building
to perform temporary repairs and remediation. Replacing the roofing system will provide a new
roofing manufacturer warranty that will cover any system failures and reduce long‑term
maintenance costs.
ADDITIONAL BACKGROUND
Project will be designed and constructed to budget using a Design-Bid-Build delivery method.
This will provide a high level of certainty that the project will stay within the authorized budget.
Construction crane activity to move materials between roof and ground will be managed to limit
impacts to gate operations
COMMISSION AGENDA – Action Item No. 8f Page 5 of 5
Meeting Date: August 11, 2026
Template revised June 27, 2019 (Diversity in Contracting).
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None