��[Type text] ��Template revised September 22, 2016. COMMISSION AGENDA MEMORANDUM Item No. May 9 , 2017 Amount of this request: 1,000 ,000 Total estimated project cost: 00,000 ACTION REQUESTED EXECUTIVE SUMMARY COMMISSION AGENDA Action Item No. ___ Page of ��Template revised September 22, 2016; format updates October 19, 2016. JUSTIFICATION The 2018 Airfield Pavement Program is a continuation of the programmatic approach of replacing aged and distressed pave ment and joint sealant as part of a multi year program. Many sections of airfield pavement have exceeded their 20 year service life and have become cracked and damaged. Replacement of joint sealant typically needs to occur every 8 to 10 years. This projec t consists of three key components: Replace sections of aged and distressed concrete pavements on Taxiway Replace the joint sealant located at touch down zones on Runway ( 16L/34R eplace sections of failing asphalt pavement located west and north of the South Satellite with concrete pavement The sections of pavements on T axiway were identified during inspections with high severity pavement distress. The replacement will require the closure of the section of T axiway B and utilize the RW16L/34R or aircraft taxiing. Including the work in 2018 Airfield Pavement Project can take advantage of the RW16L/34R closure already scheduled for the 18 Taxiway (A/B/L/Q) Improvement Projects to minimize construction impacts to airfield operations axiway B panel replacement work is estimated to cost approximately million joint sealant located at touch down zones on RW 16L/34R is in generally poor condition with the COMMISSION AGENDA Action Item No. ___ Page of ��Template revised September 22, 2016; format updates October 19, 2016. replacemen t by also replacing in pavement utilities and slot drains, when it makes sense, as well as removing abandoned utilities within the general work area. This pavement and joint sealant replacement work is planned to be combined with Industrial Waste System (IWS) Modifications at Concourse B and 18 Taxiway (A/B/L/Q) Improvement Projects , which require the closure of RW16L/34R , as a single construction contract Schedules of the three projects will be coordinated to minimize impacts to airfield operations from construction activit ies. The combined projects will benefit from a more efficient design, economies of scale and lower administrative costs. Project Labor Agreements (PLA ) ha been used on past airfield projects in order to reduce risk to operations impacts and construction schedule delays caused by potential labor disputes . This project will use PLA since it would be combined with Industrial Waste System (IWS) Modifications at Concourse B and 2018 Taxiway Improvement Projects that wil l use a PLA as a single construction contract The 2018 Airfield Pavement Project will include federally certified Disadvantage Business Enterprise (DBE) goals Analysis of DBE utilization will be conducted by the Economic Development Division’s Small Business Group (SBG). Specific outreach efforts for this project will be conducted through the Port of Seattle’s Small Business Generator (PortGen) program. DETAILS Scope of Work (1) Replace aged and distressed c oncrete pavement on the airfield; (2) Replace damaged joi nt seal for the touch done zones at RW16L/34R; (3) eplace sections of asphalt with concrete pavement to provide adequate structural support for aircraft operations. (4) Replace pavement utilities and slot drains, when it mak es sense, as well as remove abandoned utilities within the general work area. Schedule Activity Design tart 2017 Quarter 2 ommission construction a uthorization 2017 Quarter 4 Construction tart Quarter 2 se ate 2018 Quarter 4 Cost Breakdown This Request Total Project Design 1,0 00,000 2,157 ,00 COMMISSION AGENDA Action Item No. ___ Page of ��Template revised September 22, 2016; format updates October 19, 2016. Construction ,000 Total 1,0 00,000 00,000 ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 Only replace the joint sealant at touch down zones on RW16L/34R Cost plications ,000 Pros (1) Reduced construction cost for 2018. While the annual maintenance cost would increase, this would be less than the initial capital investment. (2) The replacement of joint sealant on the runway will help with ensuring safe aircraft operations and prolonging the service life of pavement to reduce the life cycle cost. Cons (1) Continued use of the aged and distressed pavement would result in FOD and potentially increase risk to airfield operations. (2) Deferring panel replacement would likely shorten the life of pavements and drive costs higher in the future. (3) Does not leverage available FAA funding This is not the recommended alternative Alternative 2 Delay the project beyond 201 Cost Implications: 00,000 The estimate is based on the assumption delay project to 2019. If the project is delayed beyond 2019, the cost estimate would be further increased to reflect annual escalation. Pros (1) No construction cost for 2018. (2) No construction impacts to aircraft operations at affected areas by this project in 2018. Cons (1) Continued use of the pavement ould result in FOD, and/or closure of the area to aircraft use. (2) This project would likely lose the opportunity to be combined with other construction projects if it’s delayed beyond 2019. This would result in contracting inefficiencies and more impact to airfield operations. This is not the recommended alternative. COMMISSION AGENDA Action Item No. ___ Page of ��Template revised September 22, 2016; format updates October 19, 2016. Alternative 3 Replace distressed pavement and joint seal on the ai rfield during the 2018 construction season. Cost Implications: 00,000 Pros (1) Programmatic replacement of distressed pavement and joint seal provide stable structural support to aircraft operations. (2) This project could be combined with other construction projects requiring the closure of RW16L/34R during the 2018 construction season to increase efficiencies and minimize impacts to airport operations. (3) Support the Port’s Century Agenda. Cons (1) Earlier capital spending than the other alternatives. (2) Construction impacts to aircraft operations in 2018. This is the recommended alternative. FINANCIAL IMPLICATIONS of 2018 Airfield Pavement Project C800483 Cost Estimate /Authorization Summary Capital Expense Total COST ESTIMATE Original Budget 00,00 00,00 Savings $200,000 $200,000 Current Budget 32,300,00 32,300,00 2017 Program Budget $1,300,000 $1,300,000 2018 Cost Estimate $20,0 00,000 $20,0 00,000 Revised estimate 00,00 00,00 AUTHORIZATION Previous authorizations (2017 Program) 1,50 0,00 1,50 0,00 Current request for authorization (2018 Design) 1,0 00,000 1,0 00,000 Total authorizations, including this request 0,00 0,00 Remaining amount to be authorized (2018 Program Construction) 19, 00,00 00,00 Remaining Authorization Future TBD 0,00 0,00 Annual Budget Status and Source of Funds The irfield Pavement Program (C800483) is included in the 201 capital budget and plan f finance with a budget of $32, 00,000. Th e 2018 portion is estimated to be illion. The funding sources for this project will be the Airport Development Fund (ADF), revenue bonds, COMMISSION AGENDA Action Item No. ___ Page of ��Template revised September 22, 2016; format updates October 19, 2016. and Airport Improvement Program (AIP) rants of approximately $5.5 illion to be determin by the Financial Analysis and Summary Project cost for analysis 00,000 Business Unit (BU) Airfield Movement Area and Airfield Apron Area Effect on business performance (NOI after depreciation NOI after depreciation will decrease IRR/NPV (if relevant) CPE Impact .04 in 2019 Future Revenues and Expenses ( Total cost of ownership Annual Operating and Maintenance costs are not anticipated to change appreciably. The estimated life expectancy for this project is 20 years for ATTACHMENTS TO THIS REQUEST Presentation s lides PREVIOUS COMMISSION ACTIONS OR BRIEFINGS October 25, 2016 The Commission authorized the Chief Executive Officer to advertise and execute a single construction contract comprised of retrofits to five existing 400 Hz In ground power stations at Cargo Areas 2 and 6, (CIP #C800247 and CIP #C800390 , respectively ) and the reconstruction of exi sting pavement at Cargo Area 2 (2017 Airfield Pavement Project CIP #C800483); and approv use a project labor agreement (PLA) for the projects. February 24, 2015 The Commission authorized the Chief Executive Officer to design, prepare construction documents, and implement advanced measures as necessary to replace distressed pavement and joint sealant for the 2016 Airfield Pavement portion of the 2016 2020 Airfield Pavement Program at the Seattle Tacoma International Airport in the amount of $200,00