PORT OF SEATTLE
MEMORANDUM

COMMISSION AGENDA             Item No.      6b
ACTION ITEM . .
Date of Meeting     April 1, 2014
CORRECTED COPY

DATE:   March 19, 2014  Corrected April 23, 2014

TO:     Tay Yoshitani, Chief Executive Ofcer

FROM:  Michael Ehl, Director, Airport Operations
Wayne Grotheer, Director, Aviation Projec Management Group 62%
SUBJECT: 2014 Aireld Improvement Project (CIP #C102573)
North Satellite Terminal- Satellite Transit Station (NSAT-STS) Ceiling Leak Long
Term Repair (CIP #C800609)

Amount of This Request: $4,030,000         Source of Funds: Airport Development
4,06;000                              Fund and future revenue bonds
Est. Total Project Cost: $4,470,000
Est. State and Local Taxes: $267,000

ACTION REQUESTED
Request Commission authorization for the Chief Executive Ofcer to advertise and execute a
single construction contract comprised of Aireld Apron Pavement Replacement (CIP
#C102573) and NSAT-STS Ceiling Leak Long Term Repair (CIP #C800609). This authorization
request is for $4,030,000 4,056,000, and the estimated total cost of the complete project is
$4,470,000.

SYNOPSIS

Three projects, two CIPs and one expense project, are to be constructed on the aireld in 2014,
and have been combined into a single construction contract in order to minimize disruption to the
airlines and Airport patrons.

The 2014 Aireld Improvement Project is part of an ongoing pavement management program to
replace aged and distressed concrete pavement and joint sealant in nonrunway areas.

The Runway 16C/34C panel replacement project will replace distressed concrete pavement
panels to ensure the safe operation of the runway before the scheduled reconstruction of the
Runway in 2015. Replacement of these panels will be paid for using $220,000 expense funds
because they will not meet the longevity requirements for capitalization.

NSAT-STS Ceiling Leak Long Term Repair will replace the failed concrete topping slab at gate
N10 to prevent rain water from entering the NSAT above the STS lobby.

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Ofcer
March 19, 2014
Page 2 of 7

Both CIPs were included in the 2014 capital budget and plan of nance. The 2014 operating
budget includes $160,000 for the Runway 16C/34C maintenance.

BACKGROUND

The Port has replaced distressed concrete pavement panels and joint sealant
on the aireld as
part of an ongoing aireld pavement program. Concrete pavement panels and joint sealant
typically have respective design lives of 20 and 10 years. Currently, there is a signicant amount
of aireld pavement and joint sealant that have far exceeded their expected service lives.
Concrete debris resulting from the deteriorating pavement can become a hazard for aircraft and
personnel. The replacement of the distressed panels is necessary for the safe operation of aircraft.
The replacement ofjoint sealant reduces water intrusion and helps to extend the life of
I
pavements.

The 2014 Aireld Improvement Project will replace twelve deteriorated panels located near the
North Satellite. Eleven panels are currently identied for replacement on Runway l6C/34C.
Expense funds will be used for the replacement of panels on Runway 16C/34C, due to its
planned reconstruction in 2015. Pavement joint seal will be replaced on portions of Taxiway B
and Taxilane W that are located west of the South Satellite.

The NSAT-STS Ceiling Leak Long Term Repair project will eliminate ceiling leaks at the NSAT
that occur between the STS and the elevators. Rainwater currently inltrates through the
severely cracked topping slab. The existing waterproong membrane between the topping slab
and underlying structural slab is now over 40 years old and has exceeded its service life. There
is also inadequate drainage to keep water from ponding on the slab. The combination of the
cracked slab, inadequate drainage, and non-functional water-proong membrane allows water to
enter the interior of the NSAT at the STS lobby. Ceiling leaks create risk in an area with a high
amount of passenger trafc that contains electrical and mechanical equipment, such as
escalators. The timing of the project is critical to limit exposure of the interior of the STS lobby
to weather while exterior components are being replaced.

The estimated total project cost includes $300,000 previously authorized for design of 2014
Aireld Improvement Project and $220,000 for design of the NSAT-STS Ceiling Leak Long
Term Repair.

The Commission previously authorized use of a project labor agreement for both projects.

PROJECT JUSTIFICATION AND DETAILS
Project Objectives:
0   Provide structurally sound pavements for current and future customers.

0   Provide reliable and appropriatesized infrastructure systems.

0   Minimize total lifecycle cost (capital and expense).

0   Minimize operational impacts.

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
March 19, 2014
Page 3 of 7

Scope of Work: This request includes the following elements:
Apron panel replacement of approximately twelve panels.
Runway panel replacement (for RW 16C/34C) of approximately eleven panels.
Replace joint seal on portions of Taxiway B and Taxilane W.
Replace failed pavement and waterproong membrane and construct drainage facilities at
Gate N10 of the North Satellite.

Schedule:

Commission Authorization to Advertise and Execute a Contract              April 2014
Advertisement                                           April 20 1 4
Notice to Proceed                                          May 2014
Begin Construction                                          July 2014
Construction Complete                                    October 2014

FINANCIAL IMPLICATIONS

CIP C102573 Budget/Authorization Summary    Capital     Expense  Total Project
_ 
-_
__-_ 
__
_
_
_
_
CIP C800609 Budget/Authorization           Capital     Expense  Total Project
Summary
Original Budget                   mm-m 

$1,530,000         $0   $1,530,000
_
-_-ETotal Estimated Project Cost

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Ofcer
March 19, 2014
Page 4 of 7

Project Cost Breakdown                    This Request       Total Project
Construction                     $3,006,100 $3,006,100
Construction Management                    $413,800         $440,800
Design                                $81,100         $321,100
Project Management                       $114,700         $254,700
Central Procurement Ofce                     $64,300          $71,300
'      Administration  $46,300 $52,300
Environmental& Permitting                     $30,700          $3 0,700
State & Local Taxes (estimated)                   $267,000          $267,000
Total                                    $4,030,000         $4,470,000
The total Project cost includes expense cost of $220,000.
Budget Status and Source ofFunds
Both CIPs are included in the 2014  2018 capital budget and plan of nance. The RW 16C/34C
expense work was included in the 2014 operating budget for $160,000. The Airport will seek to
absorb the increase through savings or use of contingency.  The funding sources for these
projects include the Airport Development Fund and future bonds. The Port plans to issue bonds
in 2014 to fund a number of projects.

FinancialAnalysis and Summary

Renewal/Enhancement
Renewal & Replacement
N/A
N/A
$4,470,000
Aireld Movement Area and Aireld Apron Area
NOI after depreciation will increase
N/A
CPE Impact            $.01 in 2014 due to expense work, $.02 in 2015 and
beyond due to capital costs.

Lifecycle Cost and Savings
The replacement of concrete panels and joint seal will result in cost avoidance for maintaining
them. Geometric constraints limit the depth of the pavement that can be constructed at the North
Satellite and may reduce the life of those particular concrete panels. The elimination of rainfall
intrusion into the North Satellite will minimize the risk of damage and associated cost to
components within the building. The reconstruction ofj oint sealant between existing concrete
panels helps to extend the life of pavements, which will reduce the long-term, lifecycle cost.

STRATEGIES AND OBJECTIVES

This project supports the Port's Century Agenda objective of meeting the region's air
transportation needs at Seattle-Tacoma International Airport for the next 25 years. Ensuring safe

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Ofcer
March 19, 2014
Page 5 of 7

and secure operations and managing assets to minimize the long-term total cost of ownership
assist in meeting this objective.

TRIPLE BOTTOM LINE

Economic Development
Generally, there are no economic impacts related to renewal/enhancement projects since they are
primarily related to preservation of existing business activity.

Environmental Responsibility

The project contains appropriate environmental controls to prevent sediments from entering
stormwater systems. Removed concrete panels are anticipated to be crushed and recycled as has
occurred on previous, similar projects.

Community Benets
Maintaining runway and aireld apron pavement benets both our airline customers and
travelers.

ALTERNATIVES AND IMPLICATIONS CONSIDERED
1) Do nothing: This alternative would result in an increasing risk of aircraft ingesting concrete
debris into aircraft engines from distressed pavement, adversely affecting Airport operations and
allow water from rainfall to continue to leak through the North Satellite ceiling. This is not the
recommended alternative.

2) Replace the deteriorated and aged pavement panels and joint sealant on runway and non-
runway areas during the 2014 construction season. This allows for the programmatic
replacement of aged and distressed pavement and joint sealant and addresses the North Satellite
ceiling leaks. This is the recommended alternative.

ATTACHMENTS TO THIS REQUEST

0   Diagram of Construction Area

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS

2014Aireld Improvement Project:
0  On August 6, 2013, the Commission authorized the use of a project labor agreement for
the project.
0  On April 2, 2013, the Commission authorized $300,000 and for the Chief Executive
Ofcer to complete the design and perform any advance preparatory work for the 2014
Aireld Apron Pavement Replacement project.
0  On March 26, 2013, the Commission authorized for the Chief Executive Ofcer to
advertise and execute a single construction contract comprised of Aireld Panel
Replacement and Joint Seal Replacement (CIP #102573) and Runway 16C/34C Panel

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Ofcer
March 19, 2014
Page 6 of 7

Replacement. This authorization request is for $8,967,000, and the estimated total cost of
the complete project is $9,377,000.
0  On July 24, 2012, the Commission authorized $200,000 and for the Chief Executive
Ofcer to complete the design and perform any advance preparatory work for the 2013
Aireld Apron Pavement Replacement project.
0  On April 10, 2012, the Commission authorized an additional $1,467,000 because the bids
exceeded the Engineer's Estimate by greater than 10 percent; and authorized the Chief
Executive Ofcer to execute a contract in the amount of $6,553,964 with the low
responsive and responsible bidder for the 2012 Exterior Gates and Aireld Improvement
Projects. This authorization increased the budget by $1,467,000 due to the higher than
expected bids, for a total project cost of $10,500,000.
o  On January 24, 2012, the Commission authorized $4,707,000 and for the Chief Executive
Ofcer to advertise and execute a construction contract that included Apron Pavement
Replacement, Exterior Gate Improvements, Runway 16C/34C Panel Replacement, and
South Snow Dump Pavement Expansion
0  On July 26, 2011, the Commission authorized $465,000 and for the Chief Executive
Ofcer to complete the design and perform any advance work in support of the 2012
Pavement and Joint Replacement and Sealant Project for
non-runway concrete pavement
panels, joint seal replacement, spall repair, and associated or temporary facilities, such as
striping, lighting, etc., on the Aircraft Operations Area.
0  On March 1, 2011, the Commission authorized $6,235,000 and for the Chief Executive
Ofcer to advertise and execute a construction contract that included slot drain,
pavement, and joint seal replacement at the South Satellite and perform installation of
temporary facilities in concourses.
o  On August 10, 2010, the Commission authorized $394,000 and for the Chief Executive
Ofcer to direct staff to: 1) proceed with project management, design, environmental
support, and preparation of 100 percent design level construction documents for the
replacement of slot drains, pavement and joint seal at the South Satellite at Seattle-
Tacoma International Airport; 2) execute and award outside professional service
agreements; 3) pre-purchase commonuse gate equipment; and 4) allow Port Construction
Services to self-perform, advertise for bids, and execute and award small works
construction contracts for common use equipment installation.
0  On February 9, 2010, the Commission authorized $5,650,000 for the design,
advertisement, and award of a construction contract for the 2010 Aireld Improvement
Projects  Contract 1, consisting of panel replacements on Runway 16C/34C.
0  On September 22, 2009, senior Aviation staff briefed the Commission
on Seattle-Tacoma
International Airport Facility Functionality and Readiness.
o  On February 26, 2008, the Commission authorized $450,000 for joint seal replacement

on Runway 16C/34C (CIP 800112).
Note: On October 30, 2003, Runway 16 Right/34 Left (1 6R/34L)
was renamed runway
I 6C/34C, in preparationfor the Third Runway to assume the
runway I 612/34L
designation.

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Ofcer
March 19, 2014
Page 7 of 7

o  On January 14, 2003, the Commission authorized $5,000,000 for a multiyear program of
panel replacement on Runway 16R/34L (CIP 102037).
0  On November 26, 1996, the Commission authorized $2,000,000 for a multi-year program
of panel replacement on Runway6R/34L (CIP 100663).
0  On June 13, 1993, the Commission authorized $10,422,000 for Runway 16R/34L
rehabilitation and other aireld improvements (CIP 100663).

NSAT-STS Ceiling Leak Long Term Repair:
0  On August 6, 2013, the Commission authorized the use of a project labor agreement for
the project.
0  On May 28, 2013, the Commission authorized $220,000 for the design and preparation of
construction documents.