Template revised September 22, 2016 COMMISSION AGENDA MEMORANDUM Item No. ACTION ITEM March 14, 2017 Amount of this request: $ 1,600,000 Total estimated project $23,500,000 ACTION REQUESTED ��COMMISSION AGENDA Action Item No. _ ___ Page of Template revised September 22, 2016. separation . The work on Taxiways L and Q was not included in the 2017 2021 capital budget. Partially offsetting the cost increase is an anticipated FAA grant of approximately $9 million. JUSTI FICATION A new capital improvement project (CIP) has been established for the relocation of Taxiway L and modification of Taxiway Q. Because of their close proximity, similar work and both requiring runway closure for construction, the two CIPs for Taxiw ay A/B reconfiguration and the Taxiway L/Q are being combined into a single major construction contract. A PLA is recommended for this project. Labor disruptions would affect the construction schedule and directly impact airport and airline operations. These projects are time sensitive and must be completed prior to the opening of the North Satellite Phase 1 Expansion, scheduled for January 2019. There are several trades that are critical to this project. The airfield work areas are unique and requir e specific familiarity and training in order to be safe and efficient. DETAILS Taxiway A/B Reconfiguration is an enabling project to the NorthSTAR North Satellite renovation and expansion (NSAT) program. Because the NSAT expansion pushes the existing ter minal to the west, the related parked aircraft will protrude out into the existing, adjacent taxilane. This requires that the adjacent taxilane and taxiways be reconfigured to accommodate the expansion, maintain airport operational efficiency and maintain required aircraft separation distances. The design for the Taxiway A/B reconfiguration has undergone several design iterations from the original concept based upon input from FAA. The current design includes modification based upon FAA’s input that occu rred during the Preliminary Hazard Safety Assessment. These modifications will provide a safer transition for all aircraft, particularly wide bodied aircraft between the taxiways and taxilane. Taxiway L was constructed prior to the current FAA guidance r egarding direct access from a ramp area to a runway. To bring Taxiway L up to current design standards it is being relocated approximately 300 feet to the south and will provide a definitive turning movement for aircraft prior to entering the adjacent run way. As part of this relocation project the runway and taxiway pavement markings will also be modified to further improve situational awareness and minimize safety risk. The FAA has designated the intersection of Taxiway Q and Taxiway B as a safety ‘Hot Spot,’ as a result of numerous runway incursions in this location. The ‘Hot Spot’ designation alerts pilots that the location is potentially problematic. After review of the runway incursions, the primary issue was found to be aircraft taxiing west on Taxiway Q and failing to hold short of Runway 16L/34R. As a step toward ‘Hot Spot’ mitigation, the centerline alignment will be modified. ��COMMISSION AGENDA Action Item No. _ ___ Page of Template revised September 22, 2016. This work requires closure of Runway 16L/34R and phasing closures of Taxiways A and B adjacent to the North Satellit e and Taxiway B at the intersection of Taxiway Q. The phasing coordination is being closely managed together with FAA Air Traffic Control Tower and SeaTac Ramp Tower. Additonal coordination will occur with the airlines and other affected entities. As a result of the ensuing design work, the future memo for construction authorization will include considerations and alternatives for sustainable construction practices and products, and considered alternatives for inclusion of appropriate small, woman, and minority business in alignment with Federal DBE required goals. Scope of Work (1) elocate Taxiway L (2) Adjust Taxiway B centerline radii at Taxiway’s L and Q leading onto Runway 16L/34R; to include adjustment of in pavement taxiway centerline lights and pavement markings (3) Modify and realign Surface Movement Guidance Control lights and connection centerlines between Taxiway A, Taxiway B and entrance to North Satellite Taxilane Schedule Commission design authorization 2017 Quarter 1 Design tart 2017 Quarter 1 Commission construction authorization 2017 Quarter 4 Construction tart 2018 Quarter 3 se ate 2018 Quarter 4 Cost Breakdown Taxiway’s L & Q This Request Total Project Design 1,600,000 2,380,000 Construction 9,122,000 Total 1,600,000 11,500,000 Cost Breakdown Taxiway’s A & B This Request Total Project Design 2,250,000 Construction 9,750,000 Total 12,000,000 ALTERNATIVES AND IMPLICATIONS CONSIDERED The number of available alternatives is limited by the operational demands to move aircraft safely and efficiently within FAA requirements. The following explanation provides context for the alternatives that follow. ��COMMISSION AGENDA Action Item No. _ ___ Page of Template revised September 22, 2016. If Taxiway A/B Reconfiguration and Taxiway L Relocation are not completed prior to the opening of the North Satellite expansion there will be significant operational impacts. (1) Each aircraft gate position is vital, and a number of the expanded terminal aircraft gate positions would be unusab le due to the aircraft tail intrusions into the existing taxilanes and taxiways (2) Two way directional aircraft movement around the renovated North Satellite is necessary for efficiency, and without this work, significant disruption of aircraft movement and positioning would cause possible Air Traffic Control delays along with passenger delays. (3) FAA is requiring Taxiway L be relocated or it must be closed. This is not an option that supports safe and efficient aircraft operations. Alternative Separate Construction Contracts Cost Implications: $26,500,000 plus previously estimated $50,000 per large aircraft per day for weight penalty of not being able to use Runway 16L/34R for departures. Pros: (1) Separation of funding (2) Single design consultant (3) Taxiway A/B does not require FAA tracking and reporting Cons: (1) Additional Runway 16L/34R closures (2) Significant operational and cost increases to airlines (3) Will not meet FAA deadlines for Taxiway L relocation This is not the recommended alternative. Alternative ingle Construction Contract Taxiway A/B Reconfiguration; Taxiway L Relocation and Taxiway Q Hot Spot Mitigation Cost Implications: $23, 500 ,000 Pros: (1) Meet construction deadlines for NorthSTAR program (2) Single Runway 16L/34R closure of the shortest duration to minimize cost and operational impacts to airlines (3) Best facilitates construction coordination between FAA, airlines, the Port, and others Cons: (1) Runway closure required for construction This is the recommended alternative. ��COMMISSION AGENDA Action Item No. _ ___ Page of Template revised September 22, 2016. FINANCIAL IMPLICATIONS Total Cost Estimate /Authorization Summary Txwy A&B Txwy L&Q Total COST ESTIMATE Original estimate 3,045,000 9,700,000 12,745,000 Current cost increase $8,955,00 1,800,000 10,755,000 Revised estimate ,000 $11,500,000 $23,500,000 AUTHORIZATION Previous authorizations $3,045,00 $150,000 3,195,000 Current request for authorization $1,600,000 $1,600,000 Total authorizations, including this request $3,045,00 1,750,000 4,795,000 Remaining amount to be authorized 8,955,00 9,750,000 18,705,000 Total Program $12,000,000 $11,500,000 $23,500,000 Annual Budget Status and Source of Funds The initial Taxiway A/B Design authorization and project construction estimate were approved in the overall NorthSTAR NSAT Renova tion project C800556. The initial Taxiway A/B Reconfiguration project estimate was $3.2M. The original scope and estimate was based on only needing to make small adjustments to the centerline with removal of and realigning with paint. Secondly, the scope and estimate increased with the determination that in pavement lighting needed to be relocated including concrete panel removal and replacement. Finally the addition of the FAA requirement for additional taxiway separation and reconfiguration now require s a new design package, additional excavation, and additional pavement; all together increasing the project estimate to $12M. The authorized and budget amounts of $3,045,000 has been transferred from the NSAT program CIP C800556 to the Airfield program CIP C800914 to be combined into a single major airfield construction project. Request for authorization of the remaining budget amount will be at the time of request for construction advertisement, bid and construction contract award of the project. The funding sources for C800914 would be Airport Improvement Program (AIP) grants (estimated at $9 million ) and future revenue bonds, to be issued in 2017. Financial Analysis and Summary Project cost for analysis $23,500,000 Business Unit (BU) Airfield Movement Effect on business performance (NOI after depreciation) NOI after depreciation will decrease IRR/NPV (if relevant) CPE Impact $.05 in 2019 ��COMMISSION AGENDA Action Item No. _ ___ Page of Template revised September 22, 2016. ATTACHMENTS TO THIS REQUEST PowerPoint Presentation PREVIOUS COMMISSION ACTIONS OR BRIEFINGS May 24, 2016 The Commission authorized the North Satellite Renovation (NSAT) increase of project scope and budget that included Taxiway Lighting and Panel Replacement of $3.2 million