COMMISSION 
AGENDA MEMORANDUM                        Item No.          8c 
ACTION ITEM                            Date of Meeting        July 10, 2018 
DATE:     July 5, 2018 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Mike Tasker, Senior Manager Aviation Facilities and Infrastructure 
Wayne Grotheer, Director Aviation Project Management 
SUBJECT:  Consolidated Rental Car Facility (CRFC) Renewal (CIP #C800977) 
Amount of this request:               $1,368,000 
Total estimated project cost:         $10,487,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to take the following actions with
respect to the Consolidated Rental Car Facility Renewal Project: (1) execute a professional
services contract for design services, (2) proceed with the design and preparation of contract
bid documents,  and (3) use Port Construction Service (PCS) crews to perform the early
construction work. Total amount being requested under this authorization is $1,368,000. 
EXECUTIVE SUMMARY 
The Consolidated Rental Car Facility ("CRCF") requires that several assets be renewed sooner
than anticipated. The CRCF Lease Agreement between the Port and the Rental Car Operators
("Operators") includes provisions for major maintenance improvements during the life of the
facility.   According to the Lease, the Port is responsible for completing major maintenance
improvements, which are to be funded from a major maintenance fund supported by Customer
Facility Charges (CFCs).   CFCs are collected from rental car customers and the funds are
restricted for capital and operating costs that support the CRCF and rental car operations at the
airport.  This project is included in the 2018  2022 capital budget and plan of finance.  The
current estimated project cost will result in budget savings of $930,000. 
A parallel effort is looking into whether any of the assets being renewed could be attributed to
Design (Error & Omission) or Construction (Latent Defect), more information about this effort is
located in the "Additional Background" section of the memo. 
JUSTIFICATION 
The project scope includes a number of major maintenance improvements for the facility that
the Port has the responsibility to complete under the terms of the CRCF Lease Agreements. The
Operators have requested that the Port complete these improvements as expeditiously as

Template revised April 12, 2018.

COMMISSION AGENDA  Action Item No. __8c__                              Page 2 of 5 
Meeting Date: July 10, 2018 
possible since many are essential to their operations. This project supports the Port's Century
Agenda strategy of advancing this region as a leading tourism destination and business gateway
by meeting the region's air transportation needs at Sea-Tac Airport for the next 25 years. 
DETAILS 
This project is proposed to be completed in two phases, an early work phase and then the
major works contract, in order to support the Operators' request for expediency.  The early
work phase will be completed utilizing PCS crews and small works construction contracts, which
are typically performed by small businesses. This phase will include the replacement of the 5th
Floor expansion joints, the improvements for the Bridge 2 abutments, and the replacement of
the 5th Floor topping slab only at two critical locations. The remaining work will be completed
in  a  later  phase  through  a  major  works  construction  contract  that  will  require  future
authorization. 
Scope of Work 
The project will complete the major maintenance improvements  described below and
identified in the attached presentation slides. 
(1)   Complete structural improvements to address spalling at the Bridge 2 abutments 
(2)   Replace and upgrade the 5th Floor expansion joints in the bus operation area 
(3)   Replace and upgrade portions of the 5th Floor topping slab in the bus operation area
due to excessive cracking and spalling 
(4)   Route and seal cracks in the deck and beams of both Helices 
(5)   Complete pavement rehabilitation on the existing S. 160th St. driveway 
(6)   Replace the weatherproofing membrane at all the carwash areas at the CRCF located
on the second and fourth levels of the facility 
Schedule 
Design start                                           2018 Quarter 3 
Early Work construction start                       2018 Quarter 3 
Commission construction authorization             2018 Quarter 4 
Construction start                                   2019 Quarter 1 
In-use date                                           2019 Quarter 3 
Cost Breakdown                                      This Request          Total Project 
Design                                                   $1,222,000            $1,330,000 
Construction                                               $146,000            $9,157,000 
Total                                                          $1,368,000            $10,487,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Three options were considered as follows: 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. __8c__                              Page 3 of 5 
Meeting Date: July 10, 2018 

Alternative 1  Under this alternative no major maintenance improvements are completed for
the CRCF 
Cost Implications: $0.00 
Pros: 
(1)   Capital investment is not required by the Port. 
Cons: 
(1)   The Port does not meet its obligations under the terms of the CRCF Lease Agreement. 
(2)   Further damage could occur to the CRCF that could make portions of the facility 
unusable by the Operators and significantly reduce the asset life of the facility. 
This is not the recommended alternative. 
Alternative 2  Under this alternative only a portion of the major maintenance work is
completed for the CRCF. The work on the helix decks and beams, and the replacement of the
weatherproofing membrane in the fuel and car wash areas on two floors are not included and
would be addressed as part of separate project and constructed at a later date. 
Cost Implications: $12,434,000 
Pros: 
(1)   Reduces  the  Port's  initial  capital  investment  (total  cost  of  $8,939,000)  by  only
addressing the most critical items. 
(2)   The Port meets its obligations under the terms of the CRCF Lease Agreement. 
(3)   The improvements which are addressed will help with prolonging service life of that
asset of the facility. 
(4)   Supports the expedited completion of critical work. 
Cons: 
(1)   Requires the greatest overall capital investment by the Port funded by CFC revenues.
The deferred work, if completed five years after this project, would have an estimated
cost of $3,495,000.   The overall capital investment of both efforts would be
$12,434,000. 
(2)   Significant impacts to facility operations during construction. 
(3)   The helices and fuel and car wash areas not included in the scope would experience
further wear and tear and a loss in durability that shortens the expected life of each
asset. Additional improvements would eventually be required in the near -term at
these locations at greater cost and impact to facility operations. 
This is not the recommended alternative. 



Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. __8c__                              Page 4 of 5 
Meeting Date: July 10, 2018 
Alternative 3  Under this alternative the full scope of the major maintenance improvements
are completed for the CRCF. 
Cost Implications: $10,487,000 
Pros: 
(1)   The Port meets its obligations under the terms of the CRCF Lease Agreement. 
(2)   The improvements are completed that maintain or prolong the asset life of the facility. 
(3)   Supports the expedited completion of critical work. 
Cons: 
(1)   Requires significant capital investment by the Port funded by CFC revenues. 
(2)   Significant impacts to facility operations during construction. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary            Capital            Total 
COST ESTIMATE 
Original estimate                                   $11,417,000      $11,417,000 
Current change                                    ($930,000)       ($930,000) 
Revised estimate                                 $10,487,000     $10,487,000 
AUTHORIZATION 
Previous authorizations                                $90,000          $90,000 
Current request for authorization                   $1,368,000       $1,368,000 
Total authorizations, including this request          $1,458,000       $1,458,000 
Remaining amount to be authorized               $9,029,000      $9,029,000 
Annual Budget Status and Source of Funds 
This project #C800977 was included in the 2018-2022 capital budget and business plan
prospective in amount of $11,417,000. A budget reduction of $930,000 will be transferred to
#C800754 Non-aeronautical Allowance. This project will be funded by Customer Facility Charge
(CFC) fund per the terms of the CRCF Lease Agreement. 
Financial Analysis and Summary 
Project cost for analysis              $10,487,000 
Business Unit (BU)                  Rental Cars Facility 
Effect on business performance     NOI after depreciation will decrease due to increased
(NOI after depreciation)             depreciation. 
IRR/NPV (if relevant)                N/A 
CPE Impact                       N/A 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. __8c__                              Page 5 of 5 
Meeting Date: July 10, 2018 
Future Revenues and Expenses (Total cost of ownership) 
According to the terms of the CRCF Lease Agreement the Operators are responsible for the
majority of the on-going operating and maintenance costs of the facility. 
ADDITIONAL BACKGROUND 
Staff believes that some of the major maintenance improvements are needed as a result of 
design errors and omissions or construction latent defects. This includes the Bridge 2 abutment,
the helix deck and beams, and the 5th Floor topping slab. There is a separate effort underway,
with the cooperation and involvement of the contractor and designers, to investigate the
underlying cause of the issues and to determine an appropriate allocation of responsibility.
Findings from this assessment could support the Port in seeking reimbursement of the Port's 
costs from either the Designer of Record (errors and omissions) or the Contractor (latent
defects), respectively. If the Port does ultimately receive reimbursement by either the Designer
of Record or Contractor, those funds will be used to replenish the CFC Fund to the extent the
costs reimbursed were paid for with funds from the CFC Fund. 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None 









Template revised September 22, 2016; format updates October 19, 2016.