Item 6c Memo

PORT OF SEATTLE 
MEMORANDUM 

COMMISSION AGENDA               Item No.     6c 
Date of Meeting  November 3, 2009 
DATE:    October 23, 2009 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Stan Shepherd, Manager, Airport Noise Programs 
SUBJECT:  Funding authorization for the sound mitigation of Highline Community College 
Building 9. Amount of this request is for $1,261,332. Source of funds: Airport Development
Funds (ADF), Passenger Facility Charges (PFC's), and Airport Improvement Program (AIP)
Federal Grants. 
Estimated State and Local Taxes Paid: $124,895 

ACTION REQUESTED 
Re      Request for authorization for the Chief Executive Officer to execute all documents necessary to complete the
sound mitigation work on Building 9 at the Highline Community College (HCC) at an estimated cost of
$2,017,377 including administrative expenses. This authorization request is for $1,261,332 and will bring the
total authorization for this CIP to $6,254,930. There is no Port property tax levy funding associated with this
request. 

BACKGROUND/SYNOPSIS 
In April, 1994, the Port of Seattle and HCC entered into an agreement to provide Port funding to the college to 
sound insulate a maximum of 22 classroom buildings against aircraft noise. HCC hires and manages the
contractors, and the Port reimburses the college for the approved insulation-related work. Port insulation funds 
were understood to be dependent on the State of Washington providing funding for the college's capital
program. The complete set of insulation projects was budgeted at $10,822,000 based on a very preliminary
estimate. The details of each building were unknown, as was the schedule. In general, the rate of remodeling
has been slow, with HCC often remodeling only one building each summer. Twelve of the 22 buildings have
currently been sound insulated. The remaining classroom buildings will be evaluated to determine need,
funding availability, and eligibility based on noise audits. 
Originally, staff sought Commission authorization for 3 to 5 buildings at a time. To better plan, estimate, and
manage this multi-year commitment, Port staff will now be seeking Commission authorization for one building
at a time, after the HCC architect's estimate is available. Due to the competition among colleges for state
funding, a schedule has not been set for the remaining eligible buildings. We will return to the Commission in

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 23, 2009 
Page 2 of 4 
the future for authorization when additional buildings are identified for acoustical installation remodel work. 
Additional funding may be needed at that time. 
State funding has been slated for 2010 for HCC to help complete work on Building 9. In addition, the Port has
worked with the Federal Aviation Administration (FAA) to make this CIP program AIP noise grant eligible to
account for 80% of eligible costs. Previously HCC mitigation was funded by ADF and PFC's only. 
Based on estimates provided by the acoustical architect, the entire cost for the renovation of Building 9 is
estimated at $2,293,737. The Port's portion of funding to noise mitigate the building is $2,017,377, which
includes administrative costs as well as a contingency for construction costs. Because there is only $756,045
remaining in the current CIP authorization, we are requesting authorization for the remaining balance of 
$1,261,332. Approximately $4.5M remains in the CIP for future work. 
PROJECT DESCRIPTION/SCOPE OF WORK 
The scope includes renovation of all remaining eligible items in the renovation of Building 9. Major elements
include installing sound rated windows, acoustical roof treatments, and mechanical ventilation systems. The
Port and FAA will be funding only acoustical related items in the reconstruction. HCC and the state will fund
all non-acoustical related items. All work should be completed in the year 2010. 

PROJECT JUSTIFICATION 
In support of the airport strategy to Develop and Maintain a Supportive Community, the Community
Development Department works closely with local and regional leaders and residents to develop and implement
mutually beneficial land use compatibility agreements, sound insulation programs, and property acquisition for
noise. Completion of these programs will reduce noise impacts on airport neighbors while increasing land use
compatibility around the airport. 
FINANCIAL IMPLICATIONS 
This request provides FAA AIP grant funds and Airport funds for mitigation of aircraft noise in Building 9 at 
HCC. The funding request is based upon the estimate prepared by the acoustical architect hired by HCC and an 
upfront allocation of eligible costs agreed to by the Port. The Port reimburses HCC after the appropriate
documentation is presented, reviewed, and approved by the Port. 

Budget/Authorization Summary 
Original Budget                      $ 7,500,000 
Revised Budget Increase                  3,322,000 
Revised Budget                       10,822,000 
Previously authorized                   $ 4,993,598 
CIP Cost-to-date                        4,237,553

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 23, 2009 
Page 3 of 4 
Authorization Remaining in CIP              756,045 
Total Project Cost  Current Request           2,017,377 
Current Authorization Request            1,261,332 
Remaining budget to be authorized           $4,567,070 
Project Cost Breakdown           Current Request 
Construction Estimate                   $1,314,689 
9.5% Sales Tax                        124,895 
Permits                                52,588 
Design Services                         161,415 
Total Construction Related                 1,653,587 
POS Contingency 20%                  330,717 
POS Admin 2%                     33,072 
Total Project Cost                       $2,017,377 
Source of Funds 
This project is included in the 2009-2013 Capital Budget and Plan of Finance under CIP number 
200042. The funding plan for this project includes a combination of Airport Improvement (AIP) grant funds,
Passenger Facility Charges (PFC) and Airport Development Funds (ADF). 
Financial Analysis 
CIP Category                     Compliance 
Project Type                       Noise Mitigation 
Risk adjusted Discount rate              N/A 
Key risk factors                      N/A 
Project cost for analysis                  $1,261,332 
Business Unit (BU)                    Airfield 
Effect on business performance            AIP grant funds will cover 80% of the project costs.
The remaining ADF will be recovered through rates
and charges, NOI after depreciation will increase 
IRR/NPV                     N/A 
CPE Impact                     Less than $0.01 in 2011, but no changes to business
plan forecast as this project was included. AIP grants
will fund 80%of project costs and PFC's will fund
approximately 15%. The remaining 5% will be
funded with the ADF. Since grand and PFC funded
costs are excluded from the airline rate base, the
impact on CPE is minimal

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 23, 2009 
Page 4 of 4 

PROJECT SCHEDULE 
Construction should be complete in the summer of 2010. 

PREVIOUS COMMISSION ACTIONS 
Resolution No. 2943, as adopted on January 8, 1985  Authorization to conduct an on-going noise remedy
program consisting of the insulation of homes and public buildings including assistance in the sale of homes
located in the airport vicinity. 
Resolution No. 3212 as adopted on July 17, 1996  Commission commitment to fulfill additional noise
reduction measures in accordance with the Puget Sound Regional Council resolution A-96-02. 
Commission Authorization, January 11, 2005  Authorized staff to proceed with funding of several noise
remedy projects including buildings at the Highline Community College. 
Commission Authorization, May 13, 2008  Authorized staff to proceed with funding for Building 19 at
Highline Community College. 

ATTACHMENTS: 
None

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