10c. Presentation - Sound Insulation Program Briefing
Item No. 10c_supp Meeting Date: August 10, 2021 Sound Insulation Program Briefing August 10, 2021 Agenda 1. Sound Insulation Acceleration Update Acceleration overview Program status update Funding/Estimates/Schedule Risks/Challenges Next steps 2 ACCELERATION OVERVIEW 3 Acceleration Motion Commission passed Motion 2020-4: Acceleration of Sound Insulation Programs at the Port on February 25, 2020. Port of Seattle Executive Director shall take necessary actions to accelerate the airport Sound Insulation Program to complete by 2026. The Executive Director shall implement the recommended structure, staffing, funding, resources, consulting, and contracting to ensure a timely delivery of the program. 4 Sound Insulation Acceleration Team 5 Potentially Eligible Properties 6 Program Status Update History of Sound Insulation Highline High School Equity, Diversity, Inclusion recommendations Updates on market segments Apartments Single-Family Homes Condominiums Places of Worship ATZ Subordination Improvement 7 History of Sound Insulation Sound Insulation Program Acquisition & Relocation Single-Family Homes - over 9,400 sound 5 mobile home parks, (359 units) insulated since 1985 69 homes north of the 3rd runway Condominiums five complexes sound 1,400 Single-Family Homes in 3rd insulated (246 units) runway acquisition Highline Schools - $100M for sound insulation Approximately $100 million spent on ($50M from the Port and $50M FAA) in noise acquisition programs impacted school buildings 9 of 15 identified schools are complete Highline College Approximately $14M for sound insulation in 14 buildings Approximately $300M on sound insulation projects 8 Highline High School Grand Opening Fall 2021 Funded by HSD, FAA Grants and Port Tax Levy and Airport Funds Key features Production Kitchen Two Theater spaces Industrial Design shops Chemistry lab Shared "Lab Space" design Kawneer Windows Designed for Education (STC44) Versoleil SunShade - Outrigger System Reduces glare, improves energy efficiency MERV 13 9 Equity, Diversity and Inclusion Recommendations Website Enhancements Improve text and images on website Leverage and promote Google translate tool utilized on Port website Broad and Targeted Outreach More frequent communication Varied approach: letter, postcard, adjust messaging On-going discussion as additional tools are available 10 Single-Family Homes Remaining 140 homes potentially eligible/80 estimated to participate As of July 22nd, 51 have applied At least 10 to be completed in 2021 6 additional with agreements in place 35 in design or pre-acoustic testing Acoustic testing and final designs in Q4 Outreach campaign initiated Estimated construction of 14+ homes per year through 2026 Subordination Agreements/COVID-19 will continue to be factors to mitigate 11 Condominiums 2 active complexes - 88 units total First complex - Villa Enzian Des Moines (28 units) 7 units starting construction Aug 2021 Major Works contracts for remaining units (pending 9 subordinations), completion 2022 Units that do not have subordination agreements in place prior to major works bid opening will be included in a subsequent construction contract Whispering Brook pending HOA participation Sunrise Terrace declined by the HOA 12 Apartment Planning 18 complexes (903 units) Application process initiated A&E procurement completed Acoustic testing to begin Q4 2021 Quarterly testing plan through 2022 Construction 2022 - 2026 Design will be triggered as Subordination received Apartments likely to have one lender for the complex Construction Completion by Q4 - 2026 13 High Level Apartment Milestones Acoustic Testing & Outreach: Q4 2021 Q4 2023 Design & Permitting: Q4 2021 Q3 2025 Construction: Q3 2022 Q4 2026 Milestones represent multiple design and construction phases with completion by the end of 2026 14 Places of Worship Planning 7 Places of Worship identified A&E Consultant specialists Design requirements more extensive Construction planning will be more challenging due to multi-use (school, food bank, special events) A&E firm brings national expert in sound insulating places of worship to the team 15 Future South ATZ Project Voluntary Acquisition of South 3rd Runway Approach Transition Zone (ATZ) 2,500 feet off the end of the Runway Protection Zone (RPZ) 1 apartment building (6 units) / 2 single-family homes RPZ Date not yet determined ATZ 16 Subordination Enhancements Specialized Consultant Progress Refined Process Receiving Subordinations/Consent A&E coordinating activities: Agreements & Avigation Easements Title, Avigation Easement & faster Subordination assistance Static Challenges During home visit, lender 3rd party Owners are slow in returning communication document will be required lender document(s) presented Some lenders are slow to Utilize owner/designer relationship respond/have more requirements Initiate Avigation Easement and 4-month average time to complete Subordination immediately after Acoustic Testing 17 FUNDING, ESTIMATES & HIGH LEVEL SCHEDULE 18 Prior Funding Practice October 11, 2013: Resolution No 3683 was passed by Commission approving the Part 150 to be submitted to the FAA for review. June 5, 2014: FAA issued a P150 record of approval Single-family homes insulation spending pace was tied to the availability of grants. 19 Cash flows & Grant Eligibility In 000's Cost as of Noise Projects Total Budget Q4 2020 2021 2022 2023 2024 2025 2026 2027 C200096 APARTMENTS NOISE PROGRAM $133,515 10,719 31,069 38,996 33,194 19,537 C200098 PLACES OF WORSHIP NOISE PROGR $25,872 - 1,031 6,546 9,664 6,521 2,110 C200094 SINGLE FAMILY HOMES NOISE PRO $16,890 2,694 1,247 2,323 3,745 4,838 1,793 250 - C200097 ATZ NOISE PROGRAM $3,313 - - 39 2,456 812 6 - C200095 CONDOMINIUMS NOISE PROGRAM $22,021 948 2,144 8,668 6,247 4,014 - - Total $201,611 $3,642 $3,391 $21,710 $42,131 $56,850 $45,463 $26,314 $2,110 In 000's Construction - AIP Eligible 20% airport Ineligible 80% Grant match for grants Total C200096 APARTMENTS 97,342 24,336 11,837 133,515 C200098 PLACES OF WORSHIP 17,667 4,417 3,788 25,872 C200094 SINGLE FAMILY HOMES 12,167 3,042 1,682 16,890 C200097 ATZ 2,243 561 509 3,313 C200095 CONDOMINIUMS 13,290 3,323 5,408 22,021 Total 142,710 35,677 23,224 201,611 Port-share 29% Projects cashflows reflect full participations and that the plan would be updated regularly as conditions change. 20 Funding Plan Scenario 2 - $10M Annual Grant FAA Airline Reinvested AIP grant AIP - Rate Base in 000's Fund * Received Future Tax Levy (Bonds/CP) Total C200096 APARTMENTS $ - $ - $ 69,000 $ - $ 64,515 $ 133,515 C200098 PLACES OF WORSHIP - - 6,000 - 19,872 25,872 C200094 SINGLE FAMILY HOMES 7,100 1,877 - - 7,913 16,890 C200097 ATZ - - - - 3,313 3,313 C200095 CONDOMINIUMS - 7,416 5,000 - 9,605 22,021 Total $ 7,100 $ 9,293 $ 80,000 $ - $ 105,218 $ 201,611 FAA grant awards $7.1M Single-Family Homes (FAA reinvested funds) $1.8M Single-Family Homes (2018) $7.4 Million allocated to the Condominium projects (2020) $13.3M Apartment projects tentative award (2021) $18.4M (2019 for Highline Schools projects) 21 Funding Strategy a) Use taxable commercial paper (CP) as an interim funding source until the availability of grants is known. b) Continue to apply for grants to fund retroactive spending. c) Issue Airport Revenue Bonds when retroactive reimbursement is unlikely. d) PFC has insufficient capacity for the next 5-10 years without shifting from other projects such as NSAT or IAF. e) The use of Tax Levy can be a funding source if available. 22 Risks/Uncertainties 1) Estimated costs could differ: a)Lack historical estimate data b)Property owners choose not to participate c) Properties not qualified after acoustic testing d)Change in noise contour with updated future Part 150 2)Grant availability 23 Project Risks RISKS DESCRIPTION PROBABILITY IMPACT MITIGATION MII vote A "No-Vote" for programs requiring MII Low Med Proactive briefings with the Airlines regarding the importance could result in construction delays of the program to the Port and the local community. Participation No historical information on High High Continual outreach initiative to gain earlier participation in the Apartment participation. SFH program. remaining eligible properties Subordination/ Agreements are required prior to High High Added a specialty consulting firm to refine the process, Consent proceeding with design(s). improve participation in the program by assisting with Agreements subordination/consent agreement coordination. Funding FAA grant funding is not guaranteed Med Low FAA grant funds for noise programs can be applied retroactively after projects are completed. AV/F&B has a financial plan to support fully funding the sound insulation programs. Specialty Sound insulation products (doors and Med Med Long-lead times for materials are built into the construction sound-rated windows) are long lead items. Could schedule. Contractor provides updates on potential delays biproducts cause delay. weekly. COVID-19 COVID-19 could pose additional Low High To ensure safety while working inside properties, the Port and restrictions on contractor access to Contractor(s) will follow all current COVID safety protocols as properties required. 24 Next Steps Commence planning/testing/design with A&E Consultant Continual owner outreach Initiate designs for apartment complexes as subordination agreements are received Continue construction on Single-Family Homes at an accelerated pace as subordination agreements are received Complete construction at Villa Enzian Condominium Complex for units with subordination/Consent agreements in place Apartment Design Authorization 25 Questions? 26
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