6c Memo, Concourse C Temporary Air Handling Units

COMMISSION 
AGENDA MEMORANDUM                        Item No.          6c 
ACTION ITEM                            Date of Meeting      August 11, 2020 
DATE:     August 3, 2020 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Eileen Francisco, Acting Director - Aviation Facilities and Capital Programs 
Wayne Grotheer, Director - Aviation Project Management Group 
SUBJECT:  Concourse C Temporary Air Handling Units (CIP#801149) 
Amount of this request:               $1,950,000 
Total estimated project cost:           $2,000,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director  to  (1) complete design,  (2) 
advertise and execute a major public works construction contract, and (3) utilize Port crews for
preconstruction activities for the Concourse C Temporary Air Handling Units project at Seattle-
Tacoma International Airport. This authorization is for $1,950,000, for a total estimated project
cost of $2,000,000. 
EXECUTIVE SUMMARY 
The existing Air Handling Units (AHUs) on Concourse C are at maximum capacity and are no
longer able to meet current demands. Additional air is needed for tenant buildouts of additional
Airport Dining and Retail (ADR) spaces and new restrooms. Two additional AHUs will be added
on the roof of Concourse C to provide additional air until a planned future project will upsize all
the existing AHUs on Concourse C. The future project which will upgrade and replace all the
AHUs and add smoke control will take several years to complete due to the size and complexity 
of the project. These temporary units are needed now to meet existing lease agreements with
tenants and to support the new restrooms that will be built in 2021 to improve passenger
experience. 
JUSTIFICATION 
Three ADR leases have been signed to replace a single existing restaurant space. The new leases
consist of two restaurants and a retail space which requires additional air capacity as compared
to the previous single restaurant. The restrooms on Concourse C are being replaced to provide
better passenger experience and are increasing the turnover rate of air in the restrooms from
eight times per minute to twenty times per minute. These modifications exceed the existing
system's capacity. 

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. __6c__                              Page 2 of 4 
Meeting Date: August 11, 2020 
Adding the two temporary units will provide the additional capacity for the next five to ten years
until the future project to upgrade all the air handlers, including the addition of smoke control,
can be completed. This larger project will also replace and upgrade all the AHUs on Concourses
B and D which are at the end of useful life. 
Diversity in Contracting 
The project team with the Diversity in Contracting Department determined a Small Business
Utilization requirement of five percent for the IDIQ Design contract. For the major works
construction contract the aspirational goal for participation of WMBE is six percent. 
DETAILS 
This project installs two new energy efficient AHUs to provide additional air capacity to
Concourse C to improve passenger experience. 
Scope of Work 
The project requires additional air capacity in two zones at Concourse C. To accomplish the work: 
(1)   Design services for this scope of work will be provided under existing indefinite delivery,
indefinite quantity (IDIQ) design services contract. 
(2)   Two, 5,000 CFM AHUs will be installed on the roof of Concourse C and have heating and
chilled water connected from the campus systems, along with direct digital controls
wiring for control and monitoring of the equipment. A major public works construction
project will be used to perform the work. 
Schedule 
Activity 
Design start                                       2020 Quarter 3 
Construction start                                2021 Quarter 1 
In-use date                                       2021 Quarter 4 
Cost Breakdown                                     This Request           Total Project 
Design                                                    $200,000               $250,000 
Construction                                             $1,750,000             $1,750,000 
Total                                                         $2,000,000              $2,000,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Rent two temporary units instead of purchasing them. 
Cost Implications: $2,800,000 
Pros: 
(1)   May be able to get the units installed sooner. 

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

COMMISSION AGENDA  Action Item No. __6c__                              Page 3 of 4 
Meeting Date: August 11, 2020 
Cons: 
(1)   Higher cost. 
(2)   May not meet seismic requirements. 
This is not the recommended alternative. 
Alternative 2  Purchase and install two, 5,000 cfm AHUs and required auxiliary equipment. 
Cost Implications: $2,000,000 
Pros: 
(1)   Provides the air required to complete all projects in the area. 
Cons: 
(1)   Requires capital investment. 
(2)   Only a 5-10-year solution until a future larger project replaces all the existing AHUs. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary               Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                 $2,000,000               $0      $2,000,000 
AUTHORIZATION 
Previous authorizations                             $50,000               $0         $50,000 
Current request for authorization                $1,950,000               $0      $1,950,000 
Total authorizations, including this request       $2,000,000               $0      $2,000,000 
Remaining amount to be authorized                    $0             $0             $0 
Annual Budget Status and Source of Funds 
This project, CIP# C801149 was not included in the 2020-2024 capital budget and plan of finance.
A budget transfer of $2,000,000 was transferred from the Aeronautical Reserve CIP# (C800753)
resulting in zero net change to the Aviation capital budget. The funding source will be revenue
bonds. 

Financial Analysis and Summary 
Project cost for analysis              $2,000,000 
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                       $.01 in 2022 

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

COMMISSION AGENDA  Action Item No. __6c__                              Page 4 of 4 
Meeting Date: August 11, 2020 

Future Revenues and Expenses (Total cost of ownership) 
This project will add additional equipment and will impact current Aviation Maintenance O&M
costs. 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None 














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.