8b. Memo
Concourse and Parking Garage Low Voltage Upgrade Projects
COMMISSION AGENDA MEMORANDUM Item No. 8b ACTION ITEM Date of Meeting January 4, 2022 DATE: December 20, 2021 TO: Stephen P. Metruck, Executive Director FROM: Eileen Francisco, Interim Director, Aviation Facilities and Capital Programs Wayne Grotheer, Director, Aviation Project Management SUBJECT: Concourse and Parking Garage Low Voltage Upgrades (CIP# C801280 & C800901) Design Amount of this request: $11,200,000 Total estimated project cost: $40,894,000 ACTION REQUESTED Request Commission authorization for the Executive Director to (1) complete design, (2) advertise and execute up to two professional services contracts for design services for the Concourse Low Voltage Upgrade project (CIP C801280) and the Parking Garage Low Voltage Upgrade project (CIP C800901), (3) advertise and execute a General Contractor, Construction Manager (GCCM) construction contract and authorize pre-construction services for CIP C801280, (4) issue a job order contract (JOC) to carry out pre-construction services for CIP 800901, and (5) use Port of Seattle crews for pre-construction activities for CIPs C801280 and C800901. The amount of this request is $11,200,000. The total estimated cost for both projects is $40,894,000. Project Amount of this request Total estimated project cost CIP C801280 $7,200,000 $28,350,000 Concourse Low Voltage Upgrades CIP C800901 $4,000,000 $12,544,000 Parking Garage Low Voltage Upgrades Total $11,200,000 $40,894,000 EXECUTIVE SUMMARY Many of the existing power distribution panels in Concourses B, C, D, and the parking garage at the Seattle-Tacoma International Airport (STIA) have been in service for over 30 years and have exceeded their serviceable life expectancy. In many cases, the equipment includes parts which are no longer available from the manufacturer or are no longer maintained as spare parts by the Template revised January 10, 2019. COMMISSION AGENDA Action Item No. __8b__ Page 2 of 7 Meeting Date: January 4, 2022 Port of Seattle's electrical shop. Some equipment also require modification to comply with current codes and standards. These projects will renew and/or replace existing normal and emergency low voltage electrical distribution equipment within Concourses B, C, and D and the parking garage at STIA. This request will authorize design and pre-construction funds for both projects. JUSTIFICATION Due to the age and conditions of some electrical equipment in use throughout STIA, risk of failure is moderate to high. A failure of electrical equipment can result in power outages in key areas of STIA with downstream users such as tenants and travelers being significantly affected for extended periods of time. As part of the planning phase of these projects, all existing electrical equipment was surveyed and panels with the highest risk of failure and resulting operational impact were identified as needing replacement. Many of the current electrical rooms are cramped and do not have space for new panels or conduit, and some of the existing panels have clearance issues which impact maintenance access. As a result, this project must install new electrical rooms and closets to support future electrical power needs at STIA. Existing panels are not consistently metered and labeled, particularly for older equipment. This project will implement metering for all replaced panels, which will provide opportunities for future energy conservation projects. C800901 will be implemented in the parking garage and will mostly address lighting panels, many of which can be replaced during daylight hours. C801280 will be implemented in the concourses, which represents additional challenges with mitigation of operational impacts, night outages, and panel relocations. Other than these differences, CIPs C801280 and C800901 will address the same equipment issues and will include similar design scope. Due to the similarities in the mission and scope of these projects, implementation with a consistent approach will result in more efficient procurement, design, and overall project management. As such, projects C801280 and C800901 are being presented together for this Commission request. The requested authorization will initiate design activities for both projects and begin preconstruction activities such as circuit tracing and outage planning to support the design effort. Diversity in Contracting The Port of Seattle's Diversity in Contracting Department performed a Women & Minority Business Enterprises (WMBE) availability analysis during the Notebook phase of these projects. Per this evaluation, an aspirational goal of 13% WMBE participation was determined for the design procurement of both projects (C801280 and C800901), and an aspirational goal of 10% WMBE participation was determined for the procurement of a GCCM for CIP C801280. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. __8b__ Page 3 of 7 Meeting Date: January 4, 2022 DETAILS Scope of Work These projects will cover the renewal and replacement of end-of-life low voltage electrical equipment within Concourses B, C, and D and the parking garage at STIA. Replacement will include but is not limited to panelboards, motor control centers, switchboards, feeders, meters, and transformers. The work will be carried out in a manner that minimizes disruptions to normal airport operations. CIPs were developed separately for Concourses B, C, and D over time. These 3 CIPs represented the same technical scope in different areas. During the Notebook development process, it was determined that combining this scope into a single project would improve efficiency, reduce project risks, mitigate operational impacts, and improve design consistency. The Investment Committee approved of CIPs C800902, C800905, and C801046 being combined into new CIP C801280. The parking garage scope (C800901) will remain a standalone project. The current budget estimate for C800901 has increased by $9,276,572 since the original Status 2 plan of finance estimate. This increase is due to the number of panels needing replacement, the need for relocating panels and building new electrical rooms, measures to reduce operational impacts, etc. Note that the recommended scope alternative (Alternative 3) prioritizes the equipment with highest risk and significantly reduces project costs from the initial field survey recommendations (Alternative 2). The Main Terminal Low Voltage System Upgrade project (CIP C800061) a similar ongoing project provides further basis for the increased budget. The design phase will include the following scope items: (1) Renew and/or replace existing normal and emergency low voltage (480/277V and 208/120V) electrical distribution equipment within Concourses B, C, and D and the parking garage at STIA. Panels have been prioritized for replacement based on condition and highest risk of operational impact; less than 30% of the panels in each area have been selected for replacement. (2) Create new electrical closets for relocated equipment as needed in each area. (3) Create a new electrical room in Concourse D to support future power demands. (4) Implement metering for all new equipment, whether as branch metering or directly on the new panel. (5) Renew and/or replace mechanical equipment (HVAC, fire protection systems, etc.) where necessary to support new electrical equipment. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. __8b__ Page 4 of 7 Meeting Date: January 4, 2022 Schedule Activity Concourses Parking Garage Project (C801280) (C800901) Design start 2022 Quarter 3 2022 Quarter 3 Commission construction authorization 2024 Quarter 1 2023 Quarter 3 Construction start 2024 Quarter 1 2024 Quarter 1 In-use date 2025 Quarter 3 2025 Quarter 1 Cost Breakdown This Request Total Project Concourse Low Voltage (C801280) Design $5,800,000 $6,345,000 Pre-Construction $1,400,000 $1,400,000 Construction $0 $20,605,000 Total $7,200,000 $28,350,000 Parking Garage Low Voltage (C800901) Design $3,600,000 $3,800,000 Pre-Construction $400,000 $400,000 Construction $0 $8,344,000 Total $4,000,000 $12,544,000 Concourses + Parking Garage (Combined) Design $9,400,000 $10,145,000 Pre-Construction $1,800,000 $1,800,000 Construction $0 $28,949,000 Total $11,200,000 $40,894,000 ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 Leave as is. Cost Implications: $500,000 (Roughly $500,000 in planning funds spent to date from the four initial CIPs would be expensed if projects do not move forward) Pros: (1) No capital costs currently. Cons: (1) High risk of panel failures, resulting in outages and significant operational impacts. (2) Added costs to small capital and tenant projects replacing panels on an as-needed basis. (3) Systems will eventually need to be replaced, either by failure or preventative measures. This is not the recommended alternative. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. __8b__ Page 5 of 7 Meeting Date: January 4, 2022 Alternative 2 Replace All Outdated Equipment. Cost Implications: $87,629,000 Pros: (1) All components originally recommended for replacement will be updated, lowering risk of failure. (2) All equipment upgraded at once, rather than on an "as needed" basis to minimize operational impacts. Cons: (1) Panels will be replaced prior to end of life. (2) Highest cost: $67M greater than total Status 2 estimates. This is not the recommended alternative. Alternative 3 Prioritize High-Risk Equipment Cost Implications: $40,894,000 Pros: (1) Equipment in poor condition or at high risk of failure prioritized for replacement. (2) Cost: Short-term savings of $47M versus Alternative 2. (3) Utilize full useful life from existing panels. Cons: (1) Increased risk of failures over next 10 years versus Alternative 2. This is the recommended alternative. FINANCIAL IMPLICATIONS C801280 - Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Plan of Finance Estimate $28,350,000 $0 $28,350,000 AUTHORIZATION Previous authorizations* $545,000 $0 $545,000 Current request for authorization $7,200,000 $0 $7,200,000 Total authorizations, including this request $7,745,000 $0 $7,745,000 Remaining amount to be authorized $20,605,000 $0 $20,605,000 *Note: Authorized amounts shown are summed from the planning funds which were authorized separately for CIPs C800902 (Concourse B - $200,000), C800905 (Concourse C - $200,000), and C801046 (Concourse D - $145,000). Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. __8b__ Page 6 of 7 Meeting Date: January 4, 2022 C800901 - Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Plan of Finance Estimate $3,267,428 $0 $3,267,428 Current change $9,276,572 $0 $9,276,572 Revised estimate $12,544,000 $0 $12,544,000 AUTHORIZATION Previous authorizations $200,000 $0 $200,000 Current request for authorization $4,000,000 $0 $4,000,000 Total authorizations, including this request $4,200,000 $0 $4,200,000 Remaining amount to be authorized $8,344,000 $0 $8,344,000 Annual Budget Status and Source of Funds The project, CIP C801280, was included in the 2022-2026 capital budget and plan of finance with a budget of $28,350,000. The budgets and authorizations from CIPs C800902 Concourse B Low Voltage Upgrade, C800905 Concourse C Low Voltage Upgrade, and C801046 Concourse D Low Voltage Upgrade were transferred to this new CIP C801280. This project would submit to the airlines for Majority-In-Interest approval after design has been completed in 2023. The project, C800901 Parking Garage Low Voltage Upgrade was included in the 2022-2026 capital budget and plan of finance with a budget of $12,544,000. Both projects funding sources will include the Airport Development Fund and future revenue bonds. Financial Analysis and Summary C801280 Concourse Low Voltage Project cost for analysis $28,350,000 Business Unit (BU) Terminal Building Effect on business performance NOI after depreciation will increase due to inclusion of (NOI after depreciation) capital (and operating) costs in airline rate base. IRR/NPV (if relevant) N/A CPE Impact $.07 in 2026 C800901 Parking Garage Low Voltage Project cost for analysis $12,544,000 Business Unit (BU) Parking Effect on business performance NOI after depreciation will decrease (NOI after depreciation) IRR/NPV (if relevant) N/A CPE Impact N/A Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. __8b__ Page 7 of 7 Meeting Date: January 4, 2022 Future Revenues and Expenses (Total cost of ownership) Renovation is expected to reduce future repair costs and increase the power available and operational availability of the affected systems. Renovation will support expansion of the ADR program which generates revenue. The new major assets will include electrical panels and miscellaneous electrical / mechanical equipment. New electrical equipment will generally have a useful lifespan of thirty years. ATTACHMENTS TO THIS REQUEST (1) Presentation slides PREVIOUS COMMISSION ACTIONS OR BRIEFINGS None Template revised June 27, 2019 (Diversity in Contracting).
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