COMMISSION 
AGENDA MEMORANDUM                        Item No.          8f 
ACTION ITEM                            Date of Meeting    September 28, 2021 

DATE:     September 20, 2021 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Randy Krause, Fire Chief 
Wayne Grotheer, Director, Aviation Project Management 
SUBJECT:  Interim Westside Fire Station  Budget Request (CIP #C800876) 
Amount of this request:                 $300,000 
Total estimated project cost:         $10,088,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to (1) increase funding for the
Interim Westside Fire Station project, at Seattle-Tacoma International Airport, by $300,000 for a
new total of $10,088,000, to complete construction, and (2) execute a change order in excess of
60 days as necessary to reconcile the contract time. 
EXECUTIVE SUMMARY 
This request is for additional budget for the Interim Westside Fire Station for two purposes. In
March 2021, when last in front of the Commission, the project team anticipated this project's
construction would be complete in May 2021. Since that time, the construction schedule of the
Fire Station has continued to slip due to contractor inefficiencies, supply chain difficulties, and
continued impacts of COVID-19. As a result of this schedule slippage, additional costs are
forecasting again beyond the project budget. The project team has forecasted $300,000 will be
required to complete the project including contingency for further risk of delays. 
The project team is requesting authority to execute a future change order to this contract for the
schedule delays, which has exceeded 60 days and reconcile contract time. Remedies, including
liquidated damages will be addressed once the contract substantial completion date has been
achieved by the contractor. Note that these remedies may ultimately offset the additional cost
but not before the project costs occur. Construction is now anticipated to be complete in
November 2021. Additional action may be required to incorporate a future lease amendment to
address shared use of the PACCAR Hangar parking lot. 


Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. __8f__                               Page 2 of 6 
Meeting Date: September 28, 2021 
JUSTIFICATION 
This action will allow the project to continue through construction. It is the quickest way to
complete the project and open the facility for use. 
This project's construction schedule has continued to slip due to contractor inefficiencies, supply
chain difficulties, and continued impacts of COVID-19. As a result of this schedule slippage,
additional costs are forecasting again beyond the project budget. Construction is now anticipated
to be complete in November 2021. 
Most of the project's cost growth has been driven by the need to cover staff's additional time. In
order to provide construction inspectors, resident engineers, construction managers, project
managers, engineering specialty consultants, security personnel, operational personnel, to
manage work around an active airfield, monitor and review contractor submittals, perform
quality checks, and manage the program, it is necessary to increase the budget to cover these
additional soft costs.
The project team continues to evaluate the project schedule to determine responsibility for each 
delay. Delays attributable to the contractor will remain the responsibility of the contractor to
remedy. 
In addition, the project team is requesting authority to execute a future change order for the
delay which will exceed 60 days. While the exact number of days will not be known until
construction is complete, seeking this authority now will improve the efficiency of completing
the contract including applying remedies, including Port collection of liquidated damages from
the contractor, per the terms of the contract. 
Diversity in Contracting 
The project team worked with the Diversity in Contracting Department to set an 11% Women
and Minority Business Enterprise (WMBE) goal for the Interim Westside Fire Station. To date, the
WMBE utilization for this design-build contract is achieving 68.46%. Note that the prime
contractor is a WMBE firm. 
DETAILS 
This project will establish a stand-alone, fully functional fire station on the west side of the airfield
to meet Federal Aviation Administration (FAA) mandated airfield firefighting requirements. This
new fire station will provide necessary accommodations to house firefighters and Aircraft Rescue
Fire Fighting (ARFF) vehicles for 24/7/365 operation. This new facility will replace temporary
facilities that included a tent structure to cover one rescue vehicle and multiple leased rooms
within the adjacent PACCAR hangar for firefighters and some equipment. Parking for the facility
will be accommodated in PACCAR's leased parking lot. Discussions are in process between
PACCAR and the Port to integrate each party's requirements into a shared use agreement for the 

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

COMMISSION AGENDA  Action Item No. __8f__                               Page 3 of 6 
Meeting Date: September 28, 2021 
parking lot. These negotiations are in the final stages and will be reflected in a lease amendment
and subsequent Commission memo if required.
As required by Resolution 3605, paragraph 4.2.3.8, we would like to notify Commission of the
execution of a change order on this major construction public works contract which resulted in
the current cumulative contract amount exceeding 10% of the original contract executed
amount. This change order was less than $300,000. Details can be found in the Additional
Background section below. 
Scope of Work 
The project scope of work has not changed. This project designs and constructs a building to
accommodate the necessary living quarters for five (5) firefighters and vehicle bays for the
storage of two (2) ARFF vehicles. The building is located directly east of the PACCAR company 
hangar. 
The living quarters will consist of five (5) bunkrooms, a day room, kitchen, restrooms with
showers, laundry facilities and an exercise room. Secured entry doors, video conferencing
equipment and an emergency response alerting system will be installed. The ARFF vehicle bays
include features currently used at the existing fire station such as vehicle exhaust extraction.
Schedule 
Construction is anticipated to complete in November 2021. 
Activity 
Commission construction authorization       2019 Quarter 4 
Construction start                             2020 Quarter 2 
In-use date                                    2021 Quarter 4 
Cost Breakdown                                     This Request           Total Project 
Design                                                           $0               $980,000 
Construction                                              $300,000             $9,108,000 
Total                                                           $300,000             $10,088,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
The project team has evaluated alternatives such as reducing the project scope and determined
that they are not viable solutions. 



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

COMMISSION AGENDA  Action Item No. __8f__                               Page 4 of 6 
Meeting Date: September 28, 2021 
Alternative 1  Increase the project budget by the forecasted $300,000 only, excluding the
change order authority. 

Cost Implications: $300,000 
Pros: 
(1)    This will provide funding to cover known and anticipated costs. 
Cons: 
(1)   A future request for change order authority would be needed later. 
This is not the recommended alternative. 
Alternative 2  Include the change order authority along with the $300,000 additional budget
request. 
Cost Implications:  $300,000. Note: U nspent contingency will be returned after project
completion for use in funding other Aviation projects. 
Pros: 
(1)   This will reduce the number of authorization requests for this project on the
Commission agenda. 
Cons: 
(1)   None 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                  $2,400,000               $0      $2,400,000 
Previous changes  net                           $7,318,000         $70,000      $7,388,000 
Current change                                   $300,000              $0       $300,000 
Revised estimate                               $10,018,000         $70,000    $10,088,000 
AUTHORIZATION 
Previous authorizations                          $9,718,000         $70,000      $9,788,000 
Current request for authorization                   $300,000              $0        $300,000 
Total authorizations, including this request      $10,018,000         $70,000     $10,088,000 
Remaining amount to be authorized                    $0             $0             $0 

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

COMMISSION AGENDA  Action Item No. __8f__                               Page 5 of 6 
Meeting Date: September 28, 2021 
Annual Budget Status and Source of Funds 
This project was included in the 2021 - 2025 capital budget and plan of finance with a budget of
$9,718,000. The budget increase of $300,000 has been transferred from the Aeronautical
Reserve CIP (C800753) resulting in no net change to the Aviation capital budget. The funding
source will be existing revenue bonds. 
Financial Analysis and Summary 
Project cost for analysis               $10,088,000 
Business Unit (BU)                  Airfield Movement Area 
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                       Range depending on economic life (CPE increase in 2022
of $0.19 if 3 years; $0.10 if 6 years; $0.07 if 10 years) 
Future Revenues and Expenses (Total cost of ownership) 
Maintenance, utilities, and janitorial costs will be incurred, but this amount is not established at
this time. 
ADDITIONAL BACKGROUND 
As described in previous memos, two factors had initially contributed to the project's cost
growth: a partial work suspension to mitigate the risks of COVID 19 and impacts due to differing
site condition. Both factors had the effect of moving construction into an unfavorable winter
construction season. The Port continues to emphasize worker safety by requiring the Contractor
to continue to follow COVID 19 protocols. 
As required by Resolution 3605, paragraph 4.2.3.8, Commission is notified of the execution of a
change order on this project's major construction public works contract which resulted in the
current cumulative contract amount to exceed 10% of the original contract executed amount.
This change order was less than $300,000. 
(1)   Contractor: Macro-Z Technology 
(2)   Original contract amount: $4,950,000.00 
(3)   Current contract amount: $5,516,974.00 
(4)   Change order No. 20 amount: $200,000.00 
(5)   Cumulative contract amount greater than 10% 
(6)   Represented cost growth of 11.45% 
Circumstances contributing to the cost growth: 
(1)    Errors/Omission-Owner (5%): The contract did not require certain Industrial Waste
System connections or sufficient building pressurization or air filtration. 

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

COMMISSION AGENDA  Action Item No. __8f__                               Page 6 of 6 
Meeting Date: September 28, 2021 
(2)    Differing Site Conditions (2.3%): Differing site conditions found during site utility
installation which resulted in schedule delays and entitled extended overhead. 
(3)    COVID-19 (4%): This contract pre-dated the pandemic and required safety protocols to
be added, 50% of which would be paid for by the Port. 
Measures taken to respond to these factors: 
(1)    Project changes will not be made unless for environmental, usability or health and
safety issues. 
(2)    Construction is out of the ground and thus should avoid future Differing Site
Conditions delays. 
(3)    The Project team and Contractor continue to evaluate COVID-19 safety requirements
to reduce cost and maintain worker safety. 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
March 29, 2021  The Commission authorized a funding increase for this project. 
October 8, 2019  The Commission authorized a funding increase for this project 
May 28, 2019  The Commission authorized use of a design-build contract for this project. No
additional funding was requested. 
February 27, 2018  The Commission authorized design and construction of this project. 









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