PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       5c 
ACTION ITEM             Date of Meeting    May 14, 2013 

DATE:    May 6, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  Additional Authorization: Common Use Lounge Remodel project CIP C800203 

Amount of This Request:  $3,903 
Source of Funds:        Airport Development Fund 
Est. Total Project Cost:    $1,064,943 
ACTION REQUESTED: 
Request Commission ratification of $3,903 for costs already incurred in excess of current
authorization to reconcile final costs for the Common Use Lounge Remodel project at the
Seattle-Tacoma International Airport. 
SYNOPSIS: 
The Port accelerated the remodel of the former Delta Air Lines lounge on concourse level of the
South Satellite in late 2011 to accommodate a March 1, 2012, opening of a new Common Use
Lounge that would be ready for occupancy when Emirates Airline started service in March 2012.
The project team met the ambitious schedule deadline. Additional costs for acceleration were
included in the previous request to advertise and award the major construction contract; however,
funds included in that authorization request fell just short of actual costs once the capital project
was completely closed out. This request reconciles the final project costs with Commission
budget authorization. 
BACKGROUND: 
The Common Use Lounge Remodel capital project was already underway and design was nearly
complete in late 2011 when the project team was asked to accelerate the work so that the new
lounge would be open and ready for business by March 1, 2012, when Emirates Airline was
scheduled to start service. The original construction completion date was in July 2012 so the
project team worked quickly to identify which aspects of the project could be accelerated to
remove over four months from the schedule. Port staff determined that our design consultants
would need to work overtime to meet our new schedule, plus additional Port staff hours would
be needed to support the 24-hour per day construction schedule the accelerated project allowed.
Estimated additional costs for these services were included in the budget with the request for
Commission authorization to advertise and award the major capital contract. The project was

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 6, 2013 
Page 2 of 3 
successfully completed by March 1, 2012, and the resulting lounge product has been well
received by our international travelers and airlines that utilize it. Unfortunately, the Port's final
estimates for the accelerated project were slightly underestimated. As a result, final close out
costs in early 2013 pushed the project just over the Commission authorized amount for the
overall project. 
We have examined the causes for this budget exceedance and believe it is a combination of the
following factors: 
End of year financial closeout and other financial and project management priorities were
such that financial aspects of this project were not being reviewed monthly, per normal
procedures, by the project manager and cost engineer starting late in 2012, nine months
after the facility went into use. 
While a risk of budget exceedance was noted in late 2012, we did not expect this to
happen. T he updated estimates of project completion costs provided at that time by staff
in other departments still working on the project proved to be too low. 
In the continuing effort to improve the accuracy of our budget estimates, we run a higher
risk of cost overruns as we adjust budgets during the life of the project to be as close to
expected final costs as possible. By returning project savings earlier, reducing project
contingencies and similar actions, we help to better manage the overall finances of the
capital improvement program but do increase this risk accordingly. 
We will review these circumstances with Aviation Project Management staff and with other
department directors in Capital Development Division to raise awareness of the importance of
budget tracking and accurate estimating as projects near closeout. We are also examining staffing
needs in the project controls area given increasing project management workload and reporting
requirements. 
FINANCIAL IMPLICATIONS: 
Capital        Expense           Total 
Original Budget                 $1,061,000            $0         $1,061,000 
Budget Increase                   $3,903             0            $3,903 
Revised Budget                $1,064,903            0         $1,064,943 
Previous Authorization            $1,061,000             0         $1,061,000 
Current request for authorization         $3,903             0             $3,903 
Total Authorizations              $1,064,903             0          $1,064,903 
This project was included in the 2011-2015 Capital Budget and Plan of Finance. The budget
increase of $3,903 will be transferred from C800404 Aeronautical Allowance. The funding
source is the Airport Development Fund. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
None.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 6, 2013 
Page 3 of 3 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
October 11, 2011  Commission authorization for advertisement and award of a major
contract for the Common Use Lounge project for $740,675. 
March 1, 2011  Commission authorization of design and furnishings procurement for
the Common Use Lounge for $320,325.