4g
PORT OF SEATTLE MEMORANDUM COMMISSION AGENDA Item No. 4g ACTION ITEM Date of Meeting July 1, 2014 DATE: June 24, 2014 TO: Tay Yoshitani, Chief Executive Officer FROM: Michael Ehl, Director, Airport Operations Wayne Grotheer, Director, Aviation Project Management Group SUBJECT: 2014 Airfield Improvement Project (CIP #C102573) Amount of This Request: $0 Source of Funds: Airport Development Fund and future revenue bonds Est. Total Project Cost: $1,500,000 Est. State and Local Taxes: $80,000 ACTION REQUESTED Request Commission authorization for the Chief Executive Officer to reject all bids for the previously advertised contract for the Airfield Apron Pavement Replacement (CIP #102573) and NSAT-STS Ceiling Leak Long Term Repair (CIP #C800609) and to re-advertise and execute a construction contract for a revised Airfield Apron Pavement Replacement project (CIP #C102573). SYNOPSIS On April 1, 2014, the Commission authorized the CEO to advertise and execute a single construction contract for three projects consisting of two CIPs and one expense project to be constructed on the airfield in 2014. A single bid was received for the contract, which was 29.45% over the Engineer's Estimate. The single bid was deemed to be irregular and subsequently rejected. The requested authorization is to re-advertise a subset of the previous contract in order to address the most critical items that could impact airport operations. The revised contract will include: Distressed concrete pavement on Runway 16C/34C. Distressed concrete pavement in three areas surrounding the North Satellite. No additional fund authorization is being requested. The estimated total cost of the revised project is $1,500,000. BACKGROUND The 2014 Airfield Improvement Project is part of an ongoing pavement management program to replace aged and distressed concrete pavement and joint sealant in non-runway areas. Concrete pavement panels and joint sealant typically have respective design lives of 20 and 10 years. Currently, there is a significant amount of airfield pavement and joint sealant that have far exceeded their expected service lives. Concrete debris resulting from the deteriorating pavement can Template revised May 30, 2013. COMMISSION AGENDA Tay Yoshitani, Chief Executive Officer June 25, 2014 Page 2 of 6 become a hazard for aircraft and personnel. The replacement of the distressed panels is necessary for the safe operation of aircraft. The revised 2014 Airfield Improvement Project will replace approximately 12 deteriorated panels surrounding the North Satellite and approximately 15 deteriorated panels located on Runway 16C/34C. Replacement of pavement joint seal on portions of Taxiways B and W and the North Satellite Satellite Transit System (STS) Ceiling Leak Long-Term Repair will be deferred. Taxiways B and W are located west of the North Satellite and their joint seal replacement is a component of CIP #C102573. The North Satellite STS ceiling repair to eliminate leaks is a component of CIP #C800609. Performing work for these items is weather-sensitive and the schedule for the readvertised project would likely affect the ability to perform the work. The interior of the STS lobby would be exposed to weather during replacement of exterior components. Replacement of the distressed panels on Runway 16C/34C will be paid for using $300,000 of expense funds because they will not meet the longevity requirements for capitalization with the scheduled reconstruction of the runway in 2015. The 2014 operating budget includes $160,000 for the Runway 16C/34C maintenance. The Commission previously authorized use of a project labor agreement for this project. PROJECT JUSTIFICATION AND DETAILS Project Objectives Provide structurally sound pavements for current and future customers. Provide reliable and appropriate-sized infrastructure systems. Minimize total lifecycle cost (capital and expense). Minimize operational impacts. Scope of Work This request includes the following elements: Apron panel replacement of approximately twelve panels. Runway panel replacement (for RW 16C/34C) of approximately fifteen panels. Schedule Commission Authorization to Advertise and Execute a Contract July 2014 Advertisement July 2014 Notice to Proceed September 2014 Begin Construction September 2014 Construction Complete October 2014 COMMISSION AGENDA Tay Yoshitani, Chief Executive Officer June 25, 2014 Page 3 of 6 FINANCIAL IMPLICATIONS CIP C102573 Budget/Authorization Summary Capital Expense Total Project Original Budget $30,800,000 $0 $30,800,000 Budget Decrease $903,505 $0 $903,505 Revised Budget $29,896,495 $0 $29,896,495 Previous Authorizations $27,679,495 $0 $27,679,495 Current request for authorization $0 $0 $0 Total Authorizations, including this request $0 $0 $0 Remaining budget to be authorized $2,217,000 $0 $2,217,000 Total Estimated Project Cost $29,896,495 $0 $29,896,495 Project Cost Breakdown This Request Total Project Construction $0 $950,000 Construction Management $0 $190,000 Design $0 $100,000 Project Management $0 $60,000 Central Procurement Office $0 $50,000 Administration $0 $40,000 Environmental& Permitting $0 $30,000 State & Local Taxes (estimated) $0 $80,000 Total $0 $1,500,000 The total Project cost includes expense cost of $300,000. Budget Status and Source of Funds CIP C102573 is included in the 2014 2018 capital budget and plan of finance. The Runway 16C/34C expense work was included in the 2014 operating budget for $160,000. The Airport will seek to absorb the increase through savings or use of contingency. The funding sources for these projects include the Airport Development Fund and future bonds. The Port plans to issue bonds in 2014 to fund a number of projects. Financial Analysis and Summary CIP Category Renewal/Enhancement Project Type Renewal & Replacement Risk adjusted discount rate N/A Key risk factors N/A Project cost for analysis $1,500,000 Business Unit (BU) Airfield Movement Area and Airfield Apron Area Effect on business performance NOI after depreciation will increase IRR/NPV N/A CPE Impact $.02 in 2014 due to expense work, $.02 in 2015 and beyond due to capital costs. COMMISSION AGENDA Tay Yoshitani, Chief Executive Officer June 25, 2014 Page 4 of 6 Lifecycle Cost and Savings The replacement of concrete panels will result in cost avoidance for maintaining them. Geometric constraints limit the depth of the pavement that can be constructed at the North Satellite and may reduce the life of those particular concrete panels. STRATEGIES AND OBJECTIVES This project supports the Port's Century Agenda objective of meeting the region's air transportation needs at Seattle-Tacoma International Airport for the next 25 years. Ensuring safe and secure operations and managing assets to minimize the long-term total cost of ownership assist in meeting this objective. TRIPLE BOTTOM LINE Economic Development Generally, there are no economic impacts related to renewal/enhancement projects since they are primarily related to preservation of existing business activity. Environmental Responsibility The project contains appropriate environmental controls to prevent sediments from entering stormwater systems. Removed concrete panels are anticipated to be crushed and recycled as has occurred on previous, similar projects. Community Benefits Maintaining runway and airfield apron pavement benefits both our airline customers and travelers. ALTERNATIVES AND IMPLICATIONS CONSIDERED 1) Do nothing: This alternative would result in an increasing risk of aircraft ingesting concrete debris into aircraft engines from distressed pavement, adversely affecting Airport operations. This is not the recommended alternative. 2) Replace the deteriorated and aged pavement panels on runway and non-runway areas during the 2014 construction season. This allows for the programmatic replacement of aged and distressed pavement and avoids operational risk from panels with known distress. This is the recommended alternative. PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 2014 Airfield Improvement Project: On April 1, 2014, Commission authorized the Chief Executive Officer to advertise and execute a contract which included pavement and joint seal replacement in the amount of $2,500,000 combined with another CIP and a total project cost of $4,470,000. On August 6, 2013, the Commission authorized the use of a project labor agreement for the project. COMMISSION AGENDA Tay Yoshitani, Chief Executive Officer June 25, 2014 Page 5 of 6 On April 2, 2013, the Commission authorized $300,000 and for the Chief Executive Officer to complete the design and perform any advance preparatory work for the 2014 Airfield Apron Pavement Replacement project. On March 26, 2013, the Commission authorized for the Chief Executive Officer to advertise and execute a single construction contract comprised of Airfield Panel Replacement and Joint Seal Replacement (CIP #102573) and Runway 16C/34C Panel Replacement. This authorization request is for $8,967,000, and the estimated total cost of the complete project is $9,377,000. On July 24, 2012, the Commission authorized $200,000 and for the Chief Executive Officer to complete the design and perform any advance preparatory work for the 2013 Airfield Apron Pavement Replacement project. On April 10, 2012, the Commission authorized an additional $1,467,000 because the bids exceeded the Engineer's Estimate by greater than 10 percent; and authorized the Chief Executive Officer to execute a contract in the amount of $6,553,964 with the low responsive and responsible bidder for the 2012 Exterior Gates and Airfield Improvement Projects. This authorization increased the budget by $1,467,000 due to the higher than expected bids, for a total project cost of $10,500,000. On January 24, 2012, the Commission authorized $4,707,000 and for the Chief Executive Officer to advertise and execute a construction contract that included Apron Pavement Replacement, Exterior Gate Improvements, Runway 16C/34C Panel Replacement, and South Snow Dump Pavement Expansion On July 26, 2011, the Commission authorized $465,000 and for the Chief Executive Officer to complete the design and perform any advance work in support of the 2012 Pavement and Joint Replacement and Sealant Project for non-runway concrete pavement panels, joint seal replacement, spall repair, and associated or temporary facilities, such as striping, lighting, etc., on the Aircraft Operations Area. On March 1, 2011, the Commission authorized $6,235,000 and for the Chief Executive Officer to advertise and execute a construction contract that included slot drain, pavement, and joint seal replacement at the South Satellite and perform installation of temporary facilities in concourses. On August 10, 2010, the Commission authorized $394,000 and for the Chief Executive Officer to direct staff to: 1) proceed with project management, design, environmental support, and preparation of 100 percent design level construction documents for the replacement of slot drains, pavement and joint seal at the South Satellite at Seattle-Tacoma International Airport; 2) execute and award outside professional service agreements; 3) prepurchase common-use gate equipment; and 4) allow Port Construction Services to selfperform , advertise for bids, and execute and award small works construction contracts for common use equipment installation. On February 9, 2010, the Commission authorized $5,650,000 for the design, advertisement, and award of a construction contract for the 2010 Airfield Improvement Projects Contract 1, consisting of panel replacements on Runway 16C/34C. On September 22, 2009, senior Aviation staff briefed the Commission on Seattle-Tacoma International Airport Facility Functionality and Readiness. COMMISSION AGENDA Tay Yoshitani, Chief Executive Officer June 25, 2014 Page 6 of 6 On February 26, 2008, the Commission authorized $450,000 for joint seal replacement on Runway 16C/34C (CIP 800112). Note: On October 30, 2003, Runway 16 Right/34 Left (16R/34L) was renamed runway 16C/34C, in preparation for the Third Runway to assume the runway 16R/34L designation. On January 14, 2003, the Commission authorized $5,000,000 for a multi-year program of panel replacement on Runway 16R/34L (CIP 102037). On November 26, 1996, the Commission authorized $2,000,000 for a multi-year program of panel replacement on Runway6R/34L (CIP 100663). On June 13, 1993, the Commission authorized $10,422,000 for Runway 16R/34L rehabilitation and other airfield improvements (CIP 100663).
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