Item No. 10c_supp
Meeting Date: August 10, 2021
Sound Insulation Program Briefing
August 10, 2021

Agenda
1. Sound Insulation Acceleration Update
Acceleration overview
Program status update
Funding/Estimates/Schedule
Risks/Challenges
Next steps


2

ACCELERATION OVERVIEW


3

Acceleration Motion
Commission passed Motion 2020-4: Acceleration of Sound Insulation
Programs at the Port on February 25, 2020.
Port of Seattle Executive Director shall take necessary actions to accelerate the
airport Sound Insulation Program to complete by 2026.

The Executive Director shall implement the recommended structure, staffing,
funding, resources, consulting, and contracting to ensure a timely delivery of the
program.

4

Sound Insulation Acceleration Team



5

Potentially Eligible Properties



6

Program Status Update
History of Sound Insulation
Highline High School
Equity, Diversity, Inclusion recommendations
Updates on market segments
Apartments
Single-Family Homes
Condominiums
Places of Worship
ATZ
Subordination Improvement
7

History of Sound Insulation
Sound Insulation Program                Acquisition & Relocation
Single-Family Homes - over 9,400 sound          5 mobile home parks, (359 units)
insulated since 1985                            69 homes north of the 3rd runway
Condominiums  five complexes sound           1,400 Single-Family Homes in 3rd
insulated (246 units)                              runway acquisition
Highline Schools - $100M for sound insulation       Approximately $100 million spent on
($50M from the Port and $50M FAA) in noise             acquisition programs
impacted school buildings
9 of 15 identified schools are complete
Highline College  Approximately $14M for
sound insulation in 14 buildings
Approximately $300M on sound insulation
projects
8

Highline High School  Grand Opening Fall 2021
Funded by HSD, FAA Grants and Port
Tax Levy and Airport Funds
Key features
Production Kitchen
Two Theater spaces
Industrial Design shops
Chemistry lab
Shared "Lab Space" design
Kawneer Windows
Designed for Education (STC44)
Versoleil SunShade - Outrigger System
Reduces glare, improves energy efficiency
MERV 13 
9

Equity, Diversity and Inclusion
Recommendations
Website Enhancements
Improve text and images on website
Leverage and promote Google translate tool utilized on Port website
Broad and Targeted Outreach
More frequent communication
Varied approach: letter, postcard, adjust messaging
On-going discussion as additional tools are available

10

Single-Family Homes
Remaining 140 homes potentially
eligible/80 estimated to participate
As of July 22nd, 51 have applied
At least 10 to be completed in 2021
6 additional with agreements in place
35 in design or pre-acoustic testing
Acoustic testing and final designs in Q4
Outreach campaign initiated
Estimated construction of 14+ homes per
year through 2026
Subordination Agreements/COVID-19
will continue to be factors to mitigate
11

Condominiums
2 active complexes - 88 units total
First complex - Villa Enzian  Des Moines (28
units)
7 units starting construction Aug 2021
Major Works contracts for remaining units
(pending 9 subordinations), completion 2022
Units that do not have subordination agreements
in place prior to major works bid opening will be
included in a subsequent construction contract
Whispering Brook pending HOA participation
Sunrise Terrace declined by the HOA
12

Apartment Planning
18 complexes (903 units)
Application process initiated
A&E procurement completed
Acoustic testing to begin Q4 2021
Quarterly testing plan through 2022
Construction 2022 - 2026
Design will be triggered as
Subordination received
Apartments likely to have one lender for
the complex
Construction Completion by Q4 - 2026

13

High Level Apartment Milestones
Acoustic Testing & Outreach: Q4 2021  Q4 2023
Design & Permitting: Q4 2021  Q3 2025
Construction: Q3 2022  Q4 2026
Milestones represent multiple design and construction phases
with completion by the end of 2026


14

Places of Worship Planning
7 Places of Worship identified
A&E Consultant specialists
Design requirements more
extensive
Construction planning will be more
challenging due to multi-use
(school, food bank, special events)
A&E firm brings national expert in
sound insulating places of worship
to the team

15

Future South ATZ Project
Voluntary Acquisition of South 3rd Runway
Approach Transition Zone (ATZ)
2,500 feet off the end of the Runway
Protection Zone (RPZ)
1 apartment building (6 units) / 2 single-family
homes                                    RPZ
Date not yet determined

ATZ

16

Subordination Enhancements
Specialized Consultant Progress        Refined Process
Receiving Subordinations/Consent            A&E coordinating activities:
Agreements & Avigation Easements           Title, Avigation Easement &
faster                                              Subordination assistance
Static Challenges                                   During home visit, lender 3rd party
Owners are slow in returning                communication document will be
required lender document(s)                presented
Some lenders are slow to                  Utilize owner/designer relationship
respond/have more requirements       Initiate Avigation Easement and
4-month average time to complete             Subordination immediately after
Acoustic Testing

17

FUNDING, ESTIMATES & HIGH LEVEL SCHEDULE


18

Prior Funding Practice
October 11, 2013: Resolution No 3683 was passed by
Commission approving the Part 150 to be submitted to the FAA
for review.
June 5, 2014: FAA issued a P150 record of approval
Single-family homes insulation spending pace was tied to the
availability of grants.


19

Cash flows & Grant Eligibility
In 000's
Cost as of
Noise Projects               Total Budget   Q4 2020       2021         2022         2023        2024       2025       2026       2027
C200096 APARTMENTS NOISE PROGRAM       $133,515                             10,719      31,069           38,996     33,194     19,537
C200098 PLACES OF WORSHIP NOISE PROGR     $25,872                    -                       1,031      6,546      9,664      6,521      2,110
C200094 SINGLE FAMILY HOMES NOISE PRO      $16,890       2,694        1,247          2,323        3,745       4,838       1,793        250        -
C200097 ATZ NOISE PROGRAM                  $3,313                    -             -            39      2,456        812          6        -
C200095 CONDOMINIUMS NOISE PROGRAM      $22,021        948       2,144         8,668       6,247      4,014                 -         -
Total       $201,611      $3,642       $3,391        $21,710      $42,131    $56,850    $45,463    $26,314     $2,110
In 000's
Construction - AIP Eligible
20% airport  Ineligible
80% Grant      match    for grants      Total
C200096 APARTMENTS                                   97,342      24,336      11,837             133,515
C200098 PLACES OF WORSHIP                              17,667       4,417        3,788         25,872
C200094 SINGLE FAMILY HOMES                            12,167       3,042        1,682         16,890
C200097 ATZ                                                2,243          561          509          3,313
C200095 CONDOMINIUMS                              13,290       3,323       5,408        22,021
Total           142,710       35,677       23,224               201,611
Port-share         29%
Projects cashflows reflect full participations and that the plan would be updated regularly as conditions
change.
20

Funding Plan
Scenario 2 - $10M Annual Grant
FAA                                Airline
Reinvested  AIP grant     AIP -                Rate Base
in 000's   Fund *     Received     Future     Tax Levy   (Bonds/CP)    Total
C200096 APARTMENTS                   $     -    $     -    $   69,000  $     -    $   64,515  $  133,515
C200098 PLACES OF WORSHIP                    -           -         6,000         -        19,872     25,872 
C200094 SINGLE FAMILY HOMES                 7,100       1,877         -           -         7,913     16,890 
C200097 ATZ                                     -           -           -           -          3,313       3,313
C200095 CONDOMINIUMS                     -        7,416      5,000        -        9,605      22,021
Total  $    7,100  $    9,293  $   80,000  $      -     $  105,218  $  201,611
FAA grant awards
$7.1M Single-Family Homes (FAA reinvested funds)
$1.8M Single-Family Homes (2018)
$7.4 Million allocated to the Condominium projects (2020) 
$13.3M Apartment projects tentative award (2021) 
$18.4M (2019 for Highline Schools projects)
21

Funding Strategy
a) Use taxable commercial paper (CP) as an interim funding source
until the availability of grants is known.
b) Continue to apply for grants to fund retroactive spending.
c) Issue Airport Revenue Bonds when retroactive reimbursement is
unlikely.
d) PFC has insufficient capacity for the next 5-10 years without
shifting from other projects such as NSAT or IAF.
e) The use of Tax Levy can be a funding source if available.

22

Risks/Uncertainties
1) Estimated costs could differ:
a)Lack historical estimate data
b)Property owners choose not to participate
c) Properties not qualified after acoustic testing
d)Change in noise contour with updated future Part 150
2)Grant availability

23

Project Risks
RISKS       DESCRIPTION                 PROBABILITY  IMPACT   MITIGATION
MII vote         A "No-Vote" for programs requiring MII   Low                Med         Proactive briefings with the Airlines regarding the importance
could result in construction delays                                           of the program to the Port and the local community.
Participation     No historical information on              High                High          Continual outreach initiative to gain earlier participation in the
Apartment participation. SFH                                             program.
remaining eligible properties
Subordination/   Agreements are required prior to        High               High         Added a specialty consulting firm to refine the process,
Consent        proceeding with design(s).                                           improve participation in the program by assisting with
Agreements                                                                    subordination/consent agreement coordination.
Funding         FAA grant funding is not guaranteed     Med              Low         FAA grant funds for noise programs can be applied
retroactively after projects are completed. AV/F&B has a
financial plan to support fully funding the sound insulation
programs.
Specialty         Sound insulation products (doors and     Med                Med         Long-lead times for materials are built into the construction
sound-rated     windows) are long lead items. Could                                    schedule. Contractor provides updates on potential delays biproducts
cause delay.                                                          weekly.
COVID-19       COVID-19 could pose additional         Low             High       To ensure safety while working inside properties, the Port and
restrictions on contractor access to                                          Contractor(s) will follow all current COVID safety protocols as
properties                                                                required.

24

Next Steps
Commence planning/testing/design with A&E Consultant
Continual owner outreach
Initiate designs for apartment complexes as subordination
agreements are received
Continue construction on Single-Family Homes at an
accelerated pace as subordination agreements are received
Complete construction at Villa Enzian Condominium Complex
for units with subordination/Consent agreements in place
Apartment Design Authorization
25

Questions?

26