8h. Memo

Airport Terminal Solid Waste Project

AGENDA MEMORANDUM                        Item No.          8h 
ACTION ITEM                            Date of Meeting       April 12, 2022 

DATE:     March 21, 2022 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Eileen Francisco, Interim Director, Aviation Facilities and Capital Programs 
Wayne Grotheer, Director, Aviation Project Management 
SUBJECT:  Airport Terminal Solid Waste Project (CIP #800945) 
Amount of this request:       $10,576,000 
Total estimated project cost:   $12,576,000 
Request Commission authorization for the Executive Director to: (1) increase the project budget 
for the Airport Terminal Solid Waste project in the amount of $6,176,000; (2) advertise and
award a major public works contract for the Airport's Terminal Solid Waste Project; and (3) use
Port crews and small works contracts for construction support. The total estimated cost of this
project is $12,576,000. 
Solid Waste throughput and capacity are essential for Airport operations, passenger comfort,
worker safety, and overall sanitation. The current solid waste infrastructure is at capacity and
needs to be expanded to meet future demands. 
This request is for project construction authorization to build an additional 2,400 square feet 
representing a 250 percent increase in dedicated refuse collection space and associated utilities
at the North and South Ramp areas of the Central Terminal. In addition, the project will install
sanitation stations at waste collection areas across the Airport to address regulatory findings. 
This project directly supports the Airport's Environmental Landfill Diversion Strategy.
The original project budget set before the start of project design was $6,400,000. The new
budget estimate is $12,576,000, an increase of $6,176,000. This budget increase includes
material  cost  increases  (primarily  steel  and  concrete),  changes  in  the  building  code,
unprecedented escalation, required structural and utility upgrades, and associated soft costs
necessary to accommodate the project.

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 8h                                  Page 2 of 5 
Meeting Date: April 12, 2022 

This action  ensures  adequate solid waste infrastructure is in place to meet operational,
passenger comfort, pest control and worker safety needs. Solid waste generation is directly
proportional to the number of passengers utilizing the Airport and the Airport's Dining and
Retail services. Pre-pandemic terminal solid waste generation (2010 to 2019) grew by 45
percent from 5,500 to 8,000 tons annually. The current facilities are at capacity and require
attention. The project requirements are based on the Airport's Solid Waste Management Plan
and the 2016 Solid Waste Growth Forecast and Capacity Study.
The Central Terminal core solid waste refuse collection and processing areas were constructed
in 2003. The space provided two-stream operations for garbage and recycling only. Composting
operations began in 2006 and are handled by movable bins. The limited space in the current
facility limits the ability for operational solutions to manage solid waste levels, which results in
overflow of solid waste and unsanitary conditions. Overflowing waste is often blown onto the
ramp creating foreign object debris, a serious safety hazard to aircraft engines. Additionally, 
when solid waste compactors are full tenants are more likely to incorrectly throw waste in
other containers, contaminating them and eliminating their ability to be properly recycled. This
project will build the required additional space and infrastructure to meet future demands for
solid waste, including recycling and composting, while remaining compliant with federal code
and sanitation guidelines.
This project directly supports the Port's Century Agenda goal to be the greenest and most
energy efficient Port in North America by expanding compost and recycling capacity, which
enables the airport to meet its solid waste diversion goals. Diverting waste from the Cedar Hills
Regional landfill reduces greenhouse gas emissions and reduces airport costs to dispose of solid
waste.  Expanding solid waste capacity through system changes and expanded capacity 
containers reduces the total number of vehicle trips required from the Airport to Solid Waste
processing facilities which reduces vehicular traffic and the Port's overall carbon footprint. 
Diversity in Contracting 
The Women and Minority Business Enterprise (WMBE) construction goal is set at 12%. The
Design Consultant WMBE commitment is 20% and is achieving a participation rate of 33%. 
The Terminal Solid Waste Project is essential work to right-size the facility infrastructure to
accommodate the growth in the Airport and subsequent increase in solid waste volumes. The
project accommodates passenger and terminal growth through 2036, aligns with Century
Agenda and Environmental diversion goals and satisfies numerous regulatory requirements.

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

COMMISSION AGENDA  Action Item No. 8h                                  Page 3 of 5 
Meeting Date: April 12, 2022 
Scope of Work 
The Terminal Solid Waste project will construct 2,400 square feet of dedicated refuse collection
space and associated utilities at the North and South Ramp areas of the Central Terminal. The
project will install sanitation stations at waste collection areas across the Airport and make
repairs to the current Central Terminal collection areas to improve drainage, general sanitation, 
and worker safety.
The initial design strategy for this project was to utilize an existing Indefinite Delivery Indefinite
Quantity (IDIQ) professional services contract. Due to the complex nature of the project's
multiple locations and timeline requirements, design fee proposals from several existing on-call
design consultants exceeded expected costs and the limits of the IDIQ contract's available
capacity. The project returned to Commission in April 2020 for authority to procure a project
specific contract. That action was expected to take 9 months. Further refinements to the
schedule added an additional 3 months and included coordination with adjacent projects on
timing of work and extensive phasing plans to mitigate construction impacts of the project. 
Construction start                                2023 Quarter 1 
In-use date                                       2023 Quarter 4 
Cost Breakdown                                     This Request           Total Project 
Design                                                           $0             $2,000,000 
Construction                                           $10,576,000            $10,576,000 
Total                                                        $10,576,000             $12,576,000 

Alternative 1  Construct Central Terminal North refuse area only at cost of $6,000,000. This
alternative provides for a 1600 square foot purpose-built facility to dispose of refuse from the
CT North and Concourses C & D. Additional sanitation stations are not included in this option. 
Cost Implications: $6,000,000 
(1)   Design within current budget. 
(2)   No major gate impacts. 
(3)   Construction can start as early as Fall 2022. 

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

COMMISSION AGENDA  Action Item No. 8h                                  Page 4 of 5 
Meeting Date: April 12, 2022 
(1)   Does not meet the forecasted waste stream need of the South-Central Terminal or
Concourses A and B.
(2)   Sanitary  concerns  and  regulatory  compliance  issues  with  the  Food  and  Drug
This is not the recommended alternative. 

Alternative 2  Fully fund the current requirement. 
Cost Implications: $12,576,000 
(1)   Provides  capacity  to  meet  the projected 15-year  Solid  Waste  volumes; provides
overflow capacity/flexibility to mitigate increased peak volumes, missed waste
pickups, daily haul downtime and equipment breakdowns.
(2)   Allows Airport to meet environmental sustainability waste diversion goal through
increased recycling and composting throughput capability. 
(3)   Improves Airport refuse area sanitation conditions. 
(1)   Most expensive option. 
(2)   Requires Gate B1 to be closed for approximately 7  months.
This is the recommended alternative. 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
Original estimate                                 $6,200,000        $200,000      $6,400,000 
Current change                                 $6,176,000              $0      $6,176,000 
Revised estimate                              $12,376,000       $200,000    $12,576,000 
Previous authorizations                          $1,950,000         $50,000      $2,000,000 
Current request for authorization               $10,426,000        $150,000     $10,576,000 
Total authorizations, including this request      $12,376,000        $200,000     $12,576,000 
Remaining amount to be authorized                    $0             $0             $0 
Annual Budget Status and Source of Funds 
This project, CIP C800945, was included in the 2022-2026 capital budget and plan of finance
with a budget of $6,200,000. A budget increase of $6,176,000 was transferred from the
Aeronautical Reserve CIP (C800753) resulting in zero net change to the Aviation capital budget. 

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

COMMISSION AGENDA  Action Item No. 8h                                  Page 5 of 5 
Meeting Date: April 12, 2022 
The $200,000 of expense is to cover required tenant equipment relocation and be in the
operating budget. The funding source will be the Airport Development Fund (ADF) and future
revenue bonds. 
Financial Analysis and Summary 
Project cost for analysis              $12,376,000 
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                       $.03 in 2025 
Future Revenues and Expenses (Total cost of ownership) 
The recommended solution is expected to yield a 10-year cost avoidance of $9,600,000 to the
solid waste program. Avoidance is based on reduced tipping fees and costs to mitigate waste
overages. Additional compactor equipment operations and maintenance costs will be $45,000
(1)   Presentation 
April 14, 2020  The Commission authorized the Executive Director to advertise and execute
a project specific design contract. Staff anticipated a project cost increase. 
October 8, 2019  The Commission authorized the Executive Director to design and prepare
construction documents for Terminals Solid Waste Project. At that time the total
estimated project cost was $6,400,000. 

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

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