8c. Memo

Boiler Room Upgrades

AGENDA MEMORANDUM                        Item No.          8c 
ACTION ITEM                            Date of Meeting       May 23, 2023 

DATE:     May 11, 2023 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Keri Stephens, Director, Aviation Facilities and Capital Programs 
Eileen Francisco, Director, Aviation Project Management 
SUBJECT:  Boiler Room Upgrades (CIP# 801230) – Design Authorization 
Amount of this request:               $1,479,000 
Total estimated project cost:          $4,839,000 
Request Commission authorization for the Executive Director  to (1) prepare design and
construction bid documents for the Boiler Room Upgrades project; (2) utilize Port of Seattle
crews to support design and pre-construction activities.  The amount of this request is
$1,479,000 for an estimated total project cost not to exceed $4,839,000. 
The central mechanical plant provides airport-wide  steam and chilled water for cooling,
heating, and hot water purposes. This project will update components of the Boiler system to
allow for the continued operational ability to utilize both natural gas and diesel fuels, effectively
maintaining a layer of redundancy to the system in the event of a natural gas curtailment. This
project will install new and replace old steam supply and fuel flow meters, which will improve
energy use tracking and accuracy, leading to efficiency savings. This project will also upgrade
the control systems for Boilers #1 through #4 to include Siemens DDC integration.  The 
Deaerator and Condensate System  Upgrade project, which was previously  submitted to
Commission, also performs work on the Central Mechanical Plant’s heating system. However,
that project focuses on different components and will have an extended duration due to the
space constraint challenges present in the Central Mechanical Plant. 
The central mechanical plant, which houses the boiler and chiller systems, provides the steam
and chilled water necessary for providing cooling, heating, and hot water to the main terminal,
concourses, and North and South satellites. It is an essential element of the airport, and it is

Template revised January 10, 2019.

             COMMISSION AGENDA – Action Item No. 8c                                   Page 2 of 4 
Meeting Date: May 23, 2023 
critical that it operates in a consistent and efficient manner. Natural gas curtailment events,
which occurred as recently as Q1 2023, have illustrated the necessity for a resilient and
redundant system. This project will replace aging components of the boiler system to ensure
continued reliability during curtailment events, as well as to  increase its overall energy
efficiency. Additionally, the boiler system controls will be updated for better connectivity to the
central mechanical plant control room. 
Diversity in Contracting 
The design services will be completed using an existing IDIQ contract that was established in
2022 which has a 16% WMBE participation utilization requirement.
Scope of Work 
This project will modify Boiler #4 improving the ability to utilize both natural gas and diesel
fuels, as well as to resolve fuel and steam metering issues on all four boilers. Additionally, the
control systems for boilers #1 through #4 will be upgraded to include Siemens DDC integration
with BacNet Protocol. 
(1) Boiler #4 modified to improve dual fuel operations. 
(2) Install new and replace old steam supply, natural gas, and diesel fuel flow meters on
Boilers #1 through #4. 
(3) Install new Exhaust Gas Analyzer for Boiler #4. 
(4) Upgrade control systems on Boilers #1 through #4 to include Building Automation
System and Siemens DDC. 
(5) Design modification for a permanent compressed air supply for long term operation
and startup under emergency conditions. 
(6) Install additional emergency shut down buttons for boiler system where absent at
operator station and corridor exits to increase operational safety. 
Design complete                              Q3 2024 
Commission construction authorization          Q4 2024 
Construction Notice to Proceed                  Q1 2025 
Substantial completion                          Q1 2026 
Cost Breakdown                                     This Request           Total Project 
Design                                                  $1,479,000             $1,479,000 
Construction                                                     $0             $3,360,000 
Total                                                         $1,479,000              $4,839,000 

Template revised June 27, 2019 (Diversity in Contracting).

             COMMISSION AGENDA – Action Item No. 8c                                   Page 3 of 4 
Meeting Date: May 23, 2023 

Alternative 1 – Status Quo. Do not proceed with the project. 
Cost Implications: Approximately $40,000 for Notebook Development would be expensed. 
(1)   Defers capital investment. 
(1)   Natural gas curtailments may occur at any time, but are often associated with colder
weather, as evidenced by a recent curtailment event in Q1 2023. Without a reliable
redundancy system, the airport steam needs may not be able to be met in the case of
a major gas curtailment event. 
(2)   Potential for additional increase in costs for materials, labor, and inflation. 
This is not the recommended alternative. 
Alternative 2  –  Proceed with project as scoped. Install equipment needed to allow for
continued operational ability on both natural gas and diesel fuel. 
Cost Implications: $4,839,000 in capital costs. 
(1)   Maintains a layer of redundancy in the event of a gas curtailment. Airport steam needs
can be met while on diesel fuel, even at peak demand. 
(2)   New fuel flow meters allow for more accurate energy use tracking, leading to greater
efficiency and cost savings. 
(3)   Updated control panels allow for DDC integration. 
(4)   Install additional emergency shut off buttons. 
(1)   Capital costs. 
This is the recommended alternative. 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
Original estimate                                 $3,406,000               $0      $3,406,000 
Current change                                 $1,433,000              $0      $1,433,000 
Revised estimate                                $4,839,000              $0      $4,839,000 
Previous authorizations                             $40,000               $0         $40,000 
Current request for authorization                $1,479,000               $0      $1,479,000 

Template revised June 27, 2019 (Diversity in Contracting).

             COMMISSION AGENDA – Action Item No. 8c                                   Page 4 of 4 
Meeting Date: May 23, 2023 
Total authorizations, including this request       $1,519,000               $0      $1,519,000 
Remaining amount to be authorized            $3,320,000             $0     $3,320,000 
Annual Budget Status and Source of Funds 
The Boiler Room Upgrade (CIP# 801230) is included in the 2023-2027 capital budget and plan of
finance with a budget of $3,406,000. The capital budget increase of $1,433,000 was transferred
from the Aeronautical Allowance CIP C800753 resulting in no net change to the Airport capital
budget. The funding sources will be the Airport Development Fund and existing revenue bonds. 
Financial Analysis and Summary 
Project cost for analysis              $4,839,000 
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                       $0.01 in 2027 
Future Revenues and Expenses (Total cost of ownership) 
This project will likely have no impact on Aviation Maintenance operating & maintenance
(O&M) costs. 
(1)   Presentation slides 

Template revised June 27, 2019 (Diversity in Contracting).


Limitations of Translatable Documents

PDF files are created with text and images are placed at an exact position on a page of a fixed size.
Web pages are fluid in nature, and the exact positioning of PDF text creates presentation problems.
PDFs that are full page graphics, or scanned pages are generally unable to be made accessible, In these cases, viewing whatever plain text could be extracted is the only alternative.