Item No. 10b_supp
Meeting Date: December 15, 2020
Noise Programs Briefing
December 15, 2020

Agenda
1. Noise Programs Overview
2. Program Status Update
2020 Work
Future Work
Peer Review
Funding/Estimates/Schedule
Risks/Challenges
Next Steps

2

Sound Insulation Programs
Sound Insulation Completed
Began in 1985
Approximately 9,400 homes
9 Highline Schools
5 condominium complexes, 246 units
14 buildings on the Highline College Campus
Acquisition Completed
5 mobile home parks, 359 mobile home units
69 homes north of the 3rd runway
1,400 single family homes including 3rd runway
acquisition
Approximately $300 million spent on sound insulation
Approximately $100 million spent on acquisition
programs

3

Sound Insulation Requirements
Homes must be built prior to 1986 in
Des Moines and 1987 in all other
areas  building codes meet or
exceed FAA standards after these
dates
Homes must have a 45dB DNL or
greater interior noise level during an
acoustic test to be eligible
Homeowners are required to sign an
avigation easement
Homeowners with mortgages have to
obtain a subordination or consent
agreement from lenders

4

2020 Work
COVID-19 Impacts
Unable to conduct eligibility testing, limited site
access prevented home entry and designs
Budget challenges have delayed program staffing
Subordination Agreement Delays
Challenge obtaining required agreements
Villa Enzian bid cancelled
2020 Accomplishments
2 homes completed
18 homes noise audited / 17 homes eligible
14 assessments/designs completed by year end
Villa Enzian acoustic testing & designs completed.

5

Future Work
Single-Family Sound Insulation
Approximately 140 potentially eligible
Condominium Sound insulation
3 complexes / 133 units potentially eligible
Apartment Sound Insulation
18 complexes / 903 units potentially eligible
Places of Worship
7 structures
Voluntary Acquisition of South 3rd Runway      ATZ
Approach Transition Zone (ATZ)
1 apartment building / 2 single family homes
6

External Expert and Airport Peer reviews
Louisville (SDF), San Diego (SAN), Chicago Executive (PWK), Van Nuys
(VNY), City of Inglewood (LAX), Minneapolis (MSP), Phoenix (PHX)
Participation from Executive Review Panel
Key takeaways:
No other airports performed the work at risk prior to receiving FAA grants
Work can likely be within the budget ranges proposed
May be possible to complete projects prior to 2027
Recommended one "over-arching" prime A&E and oversight consultant contract
Larger bid packages improve overall speed and efficiency of the program
Recommended General Contractor (GC) and supplier information sessions
Places of worship have highest constructability/schedule risk
7

Project Funding
Current Funding:
FAA Airport Improvement Program (AIP) funding
$7.4 Million allocated to the Condominium projects / more will be needed to
complete the 3 complexes
Recent FAA noise grants have totaled $7.4M (2020), $18.4M (2019 for Highline
Schools projects), and $1.8M (2018)
Future Funding:
FAA noise grants at other airports $0  $20 Million per year
FAA grants are not guaranteed
Reduced COVID passenger counts impact future funding
SEA competes for the FAA's total yearly noise funding with all airports
nationwide
8

Project Funding
Potential funding sources:
Airport cash
Revenue bonds
Tax levy (only airport noise use has been for school insulation)
Commercial Paper  potential interim funding source for "at risk"
Passenger Facility Charges (PFC)  this option would shift PFC's from other
critical airport projects
"At risk" - eligible projects can be constructed and potentially
reimbursed with FAA noise grants at a later date when/if FAA funding
becomes available.

9

We are here





10

Current Funding Scenario
Complete program prior to 2027 regardless of FAA funding
Meets the requirements of Commission adopted Motion 2020-04
Potential for reimbursement by FAA- but assumes all expenditure at-
risk
FAA contribution likely to be higher than $7.5M
FAA          POS Grant     Port Funded at  Year Complete  Program Total
Contribution    Match          risk                             Cost
$7.5M         $0            $160M-$275M  2027          $160M-$275M


11

$10M/Year Funding Scenario
Based on an assumption of $10M/year in FAA funding
Lower funding risk scenario
Program completion estimated to occur ~ 2035
FAA          POS Grant     Port Funded at  Year Complete  Program Total
Contribution    Match          Risk*                           Cost
$139M       $35M        $63M        2035         $187M-$329M

*Subject to Cone of Certainty Ranges

12

$20M/Year Funding Scenario

Assumes receiving $20M in FAA funding per year.
Port would need to upfront approximately $30 million that may be
eligible for FAA reimbursement at a later date- but expenditure at risk
Maximizing FAA funding would put program completion in 2030
FAA          POS Grant     Port Funded at  Year Complete  Program Total
Contribution    Match          Risk*                           Cost
$143M       $36M        $30M        2030         $165M-$289M
*Subject to Cone of Certainty Ranges

13

Scenario Comparisons
Option           FAA Contribution  POS Grant Match  POS Funded at    Year Complete    Program Total
Risk*                                Cost
Current Funding   $7.5M            $0                $193M            2027              $160M-275M
$10M/Year       $139M          $35M           $63M           2035            $187M-$329M
$20M/Year       $143M          $36M           $30M           2030            $165M-$289M
*Subject to Cone of Certainty Ranges



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Risks/Challenges
Obtaining subordination or consent agreements could continue to delay
program completion
COVID-19 risks particularly high working in people's homes
FAA cannot commit to grant funding or amounts
Negative MII could result in schedule delays
Funding could compete with other projects
Budget constraints have delayed program staffing
Obtaining qualified sound insulation contractors is challenging/costly
Increased supply chain issues on specialty rated noise products
Not all homeowners may choose to participate
Not all structures will pass the FAA required noise audit
15

Next Steps
Develop Subordination Agreement solution
Procure over-arching consultant for apartments, places of
worship, remaining single-family homes
Begin owner outreach and designs on apartment complexes
Hire two FTE managers to oversee consultants and acceleration
Continue construction on single family homes that do not
require subordination agreement or have agreements in place
Potentially begin construction on Villa Enzian units that do not
require subordination agreement or have agreements in place
16

Questions?

17