8e. Memo

Main Terminal Low Voltage System Upgrade

COMMISSION 
AGENDA MEMORANDUM                        Item No.          8e 
ACTION ITEM                            Date of Meeting      October 11, 2022 

DATE:     October 4, 2022 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Keri Stephens, Director Aviation Facilities and Capital Programs 
Eileen Francisco, Director Aviation Project Management 
SUBJECT:  Main Terminal Low Voltage System Upgrade (CIP #C800061) 
Amount of this request:             $ 88,824,000 
Total estimated project cost:        $119,557,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to 1) increase the project budget
by $19,257,000 for a final revised total budget of $119,557,000; 2) authorize $88,824,000 of the
project budget and execute a construction contract with M.A. Mortenson Company; 3) execute
future Amendments and Change Orders up to the executed Commission authorization amount
for additional design, project and construction management services that exceed $300,000 
and/or exceed 60 calendar day time extension; 4) transfer $521,000 and associated project scope
from CIP #C800061 Main Terminal Low Voltage project to CIP #C801204 SEA Gateway/North
Main Terminal Redevelopment program; and 5) authorize Port Construction Services to execute
small works contracts and use Port crews to support MTLV construction. 
EXECUTIVE SUMMARY 
This project replaces the Main Terminal Low Voltage (MTLV) distribution system, which provides
power to every floor of the main terminal and is at the end of its serviceable lifespan. It updates 
the low voltage electrical distribution equipment (480/277 Volts and 208/120 Volts) in the Main
Terminal, includes the Main Terminal Emergency System, and brings the new equipment into
compliance with National Electric Code (NEC) safety standards, which, in some cases, requires 
the construction of new rooms and relocating the updated panels. The project also includes the
replacement of the Central Power Center, and moves it into a new, more serviceable, location. 
Since the last commission action in July 2018, the project has executed contracts with Casne, the 
designer, and Mortenson, our general contractor/construction manager (GC/CM) to work
together on design, construction phasing, operational coordination, and completion of 
negotiations of the maximum allowable construction costs (MACC). This contracting approach
helped minimize redesign  during construction, construction  coordination,  and operational

Template revised January 10, 2019.

             COMMISSION AGENDA – Action Item No. __8e__                              Page 2  of 6
Meeting Date: October 11, 2022 
impacts and risks. The project has completed the design, which included a full physical inventory
and condition assessment of the low voltage distribution system in the Main Terminal, as well as
electrical  panel  circuit  tracing  to  understand  user  impacts  of  the  system  replacement.
Coordination with the North Main Terminal Redevelopment (NMTR) program has resulted in the
need for limited scope transfer between projects. The scope transfer from MTLV to NMTR is
valued at $521,000 and will facilitate coordination and eliminate the need for immediate rework
of new panels and associated power feed circuits that would have been installed by the MTLV 
project. The project includes the delivery of a new of a new Power Center, replacement of 350 
electrical panels, and 1,800 - 2,200 electrical power shutdowns. The project team has now 
completed negotiation of the MACC with the GC/CM. The budget is increasing by $19,257,000
for a total estimated project cost of $119,557,000. This project should create between 45-50
construction jobs to complete the work. 
JUSTIFICATION 
The Airport's medium voltage electrical distribution system and power centers (primary
operating voltage levels of 5,000 to 15,000 volts) have all been renewed and replaced within the
last decade. The next phase of the Airport's renewal and replacement program for the electrical
system is the low voltage system (operating voltage distribution levels of 120 to 600 volts). This
infrastructure is critical to airport operations. 
Large portions of the existing low voltage electrical distribution system have reached the end of
their useful operating life, raising concerns over their continued reliability. The useful operating
life of electrical equipment primarily depends on age, with 30 years being a reasonable lifespan.
Some of the equipment included in this project is well over 40 years old. Equipment
maintainability and availability of spare parts are increasing concerns with aging equipment. 
Much of the existing equipment is not compliant with the current National Electrical Code (NEC).
There are areas in the low voltage electrical system where the available fault current exceeds the
current ratings for the existing equipment, thus creating operating and working condition safety
issues. Other safety-related NEC issues exist for these older installations, including dedicated
equipment space, working clearances, illumination, identification, and the need for Underwriters
Laboratory (UL) listing of all equipment. The MTLV project will correct all the issues in this area
and bring the installation up to current standards and compliance with current codes. Having
adequate capacity and reliability in the low voltage distribution system is also critical in
supporting deployment of new technologies that can maximize facility throughput. 
The work will be carried out in a manner that minimizes disruptions to normal airport operations.
Replacement of the equipment will allow renewal of the expected lifespan, compliance to all
code requirements, increased reliability, and increased selectivity of outages. Replacement will
include panel boards, motor control centers, feeders, meters, and transformers. New metering
will be included for selected replaced panel boards along with connection to the airport-wide
metering network. Additional electrical closets will be created due to relocation of the replaced
panels due to code required working clearances.

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

             COMMISSION AGENDA – Action Item No. __8e__                              Page 3  of 6
Meeting Date: October 11, 2022 
Throughout the design phase, the project team completed a full physical inventory and condition
assessment of all electrical equipment in the main terminal. The condition assessment has driven
the necessary renewals and project scoping. The major Project Elements include: 1) Normal
Power renewal, replacement, optimization, and expansion. 2)  Emergency Power renewal,
replacement, optimization, and expansion. 3) Replacement of the Central Terminal Power
Distribution Load Center. 4) Implement energy metering on select panels that feed tenant spaces
in new work. 5) Minimize disruption to normal airport operations during construction. 
The need for these major work elements is detailed below. 
Emergency Power Work 
The emergency power distribution system is of similar age, condition, and risk of failure as the
normal building power: inadequate working clearance, no replacement parts, etc. In addition,
the emergency power panels are often located in the same electrical closets as the normal
building power which is not permitted per current codes.
Central Terminal Power Distribution Load Center 
The Central Terminal Power Center is nearing the end of its useful life and is already enveloped
by new baggage conveyance systems making replacement at a future date exceedingly difficult
and costly. It is the only passenger terminal power center that was not upgraded in the mid
2000’s and is the only power center that is not configured for maximum reliability. 
Energy Metering 
Branch circuit metering will allow the Port of Seattle to identify and implement future energy
saving projects to comply with Washington State Energy Code for 2015 as adopted by Port
Resolution 3745. 
Regulated Materials 
Most of the work locations for this project are in areas where regulated materials are present.
Due to the large geographic areas this project covers, asbestos abatement costs will be
significant.
Diversity in Contracting 
Given the scope items for this project, the Diversity in Contracting department has established a
7% WMBE aspirational goal associated with this contract.
DETAILS 
Scope of Work 
This project covers the renewal and replacement of end-of-life low voltage electrical distribution
switchboards, feeders, panels, and tenant metering in the Main Terminal served by the five Main

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

             COMMISSION AGENDA – Action Item No. __8e__                              Page 4  of 6
Meeting Date: October 11, 2022 
Terminal Power Distribution Load Centers. The work will be carried out in a manner that
minimizes disruptions to normal airport operations. 
Specific Scope Items: 
(1)      Normal Power renewal, replacement, optimization, and expansion. 
(2)      Emergency Power renewal, replacement, optimization, and expansion. 
(3)      Replacement of the Central Terminal Power Distribution Load Center. 
(4)      Implement branch circuit level energy metering in new work. 
(5)      Minimize disruption to normal airport operations during construction. 
(6)      Abatement of regulated materials as incident to the overall scope. 
Schedule 
Construction start                                2022 Quarter 4 
In-use date                                       2026 Quarter 1 
Cost Breakdown                                     This Request           Total Project 
Design                                                           $0            $16,935,000 
Construction                                           $88,824,000          $102,622,000 
Total                                                        $88,824,000           $119,557,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1 – Status Quo, Do not proceed with replacement of the main terminal low voltage
distribution system 
Cost Implications: $11,000,000 spent to date (approximate) 
Pros: 
(1) Defers significant capital spending 
Cons: 
(1) Renewal and replacement of the system will be deferred. 
(2) Continued risk of injury to personnel. 
(3) Increased risk of extended unplanned electrical outages. 
(4) Future equipment replacement will cost more as a result of escalation. 
(5) Increased costs to projects in Main Terminal as individual upgrades are needed. 
(6) Existing work will be expensed. 
This is not the recommended alternative. 



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

             COMMISSION AGENDA – Action Item No. __8e__                              Page 5  of 6
Meeting Date: October 11, 2022 
Alternative 2 – Proceed with full scope of replacement design 
Cost Implications: $119,557,000 
Pros: 
(1) Power distribution system will be replaced in a planned manner. 
(2) Increased reliability of normal and emergency power systems. 
(3) Outages (planned and unplanned) will be minimized. 
(4) Safe work environment for personnel. 
(5) Increased capacity for support of future projects. 
(6) Detailed metering for revenue and energy conservation. 
Cons: 
(1) Higher Capital Cost required to complete project 
(2) Operations must be maintained during construction. 
(3) Operational impacts during circuit cutovers 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                 $19,640,000     $1,090,000    $20,730,000 
Previous changes – net                          $67,120,000    $12,450,000    $79,570,000 
Current change                                $26,871,000    ($7,614,000)    $19,257,000 
Current Budget                               $113,631,000     $5,926,000   $119,557,000
AUTHORIZATION 
Previous authorizations                          $30,193,000       $540,000    $30,733,000 
Current request for authorization                $83,438,000     $5,386,000    $88,824,000 
Total authorizations, including this request      $113,631,000      $5,926,000   $119,557,000
Remaining amount to be authorized                     $0             $0             $0 
Annual Budget Status and Source of Funds 
The Main Terminal South Low Voltage System Upgrade #C800061 is included in the 2022-2026
capital budget and plan of finance with a budget of $86,760,000. The capital budget increase of
$26,871,000 was transferred from the Aeronautical Allowance CIP C800753 resulting in no net
change to the Airport capital budget. The regulated material expense will be included in the
operating budget in the year when the remediation obligated event occurs. The funding sources
will be the Airport Development and future revenue bonds. This project was presented to the
airlines at an Airport Airlines Affairs Committee and the Majority in Interest (MII) ballot was
approved on May 14, 2018. MII Management Reserve will be utilized, if needed, for the budget
increase. 

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

             COMMISSION AGENDA – Action Item No. __8e__                              Page 6  of 6
Meeting Date: October 11, 2022 

Financial Analysis and Summary 
Project cost for analysis              $119,036,000 
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                       $.28 in 2027 
Future Revenues and Expenses (Total cost of ownership) 
Renovation is expected to reduce future repair costs and increase the power available and
operational availability of the system. The new major assets will include electrical panels,
electrical  power  distribution  load  center,  and  miscellaneous  electrical  equipment.  This
equipment has a useful lifespan of thirty years. 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
July 10, 2018 – The Commission approved full design funds and GC/CM award. 
June 12, 2018 – The Commission was briefed on the contents of the July 2018 action. 
August 5, 2014 – The Commission approved project consolidation and design. 
June 28, 2007 – The Commission approved design and construction of a project which is much
more limited scope and budget and is now included in the larger current effort. 








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



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