PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       6d 
ACTION ITEM             Date of Meeting   March 12, 2013 

DATE:    February 26, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   James R. Schone, Director, Aviation Business Development 
George England, Program Leader, Aviation Project Management 
SUBJECT:  Doug Fox Parking Lot Services Upgrades Project (CIP #C800451) 

Amount of This Request:  $3,322,000       Source of Funds: Airport Devel. Fund 
Est. State and Local Taxes: $283,000         Est. Jobs Created: 32 
Est. Total Project Cost:    $5,118,000 
ACTION REQUESTED: 
Request Commission authorization for the Chief Executive Officer to advertise for, award, and
execute a major public works contract for the construction of the Doug Fox Parking Lot Service
Upgrades Project in the amount of $3,322,000 for construction, construction management,
project management, and other soft costs. This amount is in addition to $1,796,000 previously
authorized for a total project budget of $5,118,000. 
SYNOPSIS: 
The Doug Fox Parking Lot is located  mile from the Airport and has served as an off-site
parking lot for the Airport for over 20 years. The lot competes with several private off-site lots,
but needs substantial upgrades to better attract customers and increase its revenue generating
capability. This construction authorization request for infrastructure upgrades and a new
building at the lot is submitted to Commission in conjunction with a separate, but directly
related, Commission authorization request regarding the execution of a lease and concession
agreement with ATZ Inc. (ATZ) to operate the lot. The agreement with ATZ calls for the Port to
construct storm drainage, lot resurfacing, lighting, building, and signage upgrades, to improve
the customer experience and revenue-generating capability of the lot. Construction of the
upgrades as proposed and requested will meet the provisions of the agreement with ATZ. The
total project budget is estimated to be $5,118,000, and annual revenue resulting from the
upgrades is estimated at $2 million annually. 
This project was included in the 2013 - 2017 capital budget and plan of finance.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 26, 2013 
Page 2 of 7 
BACKGROUND: 
On February 14, 2012, the Commission approved $1,028,000 under CIP #C800451 for the
design and construction of a new storm drainage system at the Doug Fox Lot and to complete the
drainage improvements by September 30, 2012. The Commission was also informed that
additional improvements to the lot were being evaluated, including lot resurfacing, lighting, a
new building, and signage. The result of that evaluation was that staff proposed to move forward
with the additional improvements, and that these additional improvements be combined with the
original storm drainage work to obtain significant design and construction efficiencies. 
Subsequently, on May 22, 2012, Commission authorized the consolidation of the additional
improvements with the original storm drainage improvement, and authorized $768,000 for the
design of the additional improvements. All project work was consolidated into CIP #C800451
with a total budget of $6,123,000. That action constituted a Project Change per Resolution No. 
3605, as amended by Resolution 3628, section 4.2.3.3, and thus required Commission
authorization. Based on cost estimating work performed during the design phase, the project
budget is now being reduced by $1,005,000 from $6,123,000 to $5,118,000.
Additional background information related to the operation of the Doug Fox Parking Lot and the
agreement with ATZ is provided in the separate Commission agenda memo regarding the
agreement. 
PROJECT JUSTIFICATION: 
With the proposed new lease with ATZ and construction of the upgrades proposed in this
request, the Airport has the opportunity to increase parking revenues generated from an
improved facility. The facility represents an important element of the Port's Airport parking
business with annual Port revenues regularly surpassing $2 million. 
Project Statement: 
Design and construct improvements, including new storm drainage, lot resurfacing, lighting,
signage, and a new building at the facility by early 2014.
Project Objectives: 
The Port's objective is to increase revenues generated from the facility. An enhanced customer
experience will result from new storm drainage, pavement, lighting, signage and a new building,
allowing the facility to offer a more competitive parking product in the Airport parking market.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 26, 2013 
Page 3 of 7 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
New stormwater drainage system 
Lot resurfacing 
Lighting system upgrade 
New and improved signage 
New building, cashier booths, and canopy over entrance/exit lanes 
Schedule: 
Design Phase: May 2012  March 2013 
Construction Phase: April 2013  May 2014 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary: 
Capital     Expense (RMM)     Total 
Original Budget                       $1,665,000            $0    $1,655,000 
Previous scope and budget changes          $4,408,000        $50,000    $4,458,000 
Current budget                        $6,073,000        $50,000    $6,123,000 
Current budget reduction                 -$1,005,000            $0   -$1,005,000 
Revised budget                       $5,068,000        $50,000    $5,118,000 
Previous Authorization                 $1,796,000           $0    $1,796,000 
Current request for authorization             $3,272,000        $50,000    $3,322,000 
Total Authorizations, including this request      $5,068,000        $50,000    $5,118,000 
Remaining budget to be authorized               $0           $0         $0 
Total Estimated Project Cost            $5,068,000        $50,000    $5,118,000 
Project Cost Breakdown:              This      Total
Request     Project 
Construction                   $2,696,000   $3,309,000 
Sales Tax On Construction          $225,000    $283,000 
Design and Other Soft Costs          $87,000    $955,000 
Construction Mgt. and Related Costs    $314,000    $571,000
Total                         $3,322,000   $5,118,000 
Budget Status and Source of Funds: 
This project, CIP #C800451, was included in the 2013  2017 capital budget and plan of finance
with a budget of $6,173,000. The budget decrease will be transferred to the non-aeronautical
allowance CIP (#C800405), a business plan prospective project, resulting in no net change to the
Aviation capital budget. The funding source for this project will be the Airport Development
Fund.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 26, 2013 
Page 4 of 7 
Financial Analysis and Summary: 
As part of the February 14, 2012, request for design and construction funding for the stormwater 
drainage repair work, the associated financial analysis assumed that by upgrading the drainage
system, the current revenues generated at the facility would be maintained. However, no new,
incremental revenues were anticipated as part of that analysis.
The financial analysis associated with the additional design funds requested on May 22, 2012, 
assumed new, incremental revenues associated with the construction of the additional project
elements based on staff's expectation that with new, enhanced pavement, lighting, signage and a
new building, revenues would be enhanced.
The financial analysis and justification associated with this request again includes only the new,
incremental revenue generated from the facility with implementation of all the project elements,
including the cost of the previously approved drainage work. This was done to create a
conservative financial analysis showing all costs associated with the project, both previously
approved by Commission and those related to this request, as well as new revenues anticipated
from an enhanced surface parking facility. In addition, since the May 22, 2012, communication
to Commission, staff has been able to better refine the parking activity assumptions throughout
the lease term and extensions associated with the facility improvements. The updated
assumptions included significant input and review from ATZ as well as review by Leigh Fisher
Associates, a parking consulting firm currently under contract with the Port of Seattle. 

CIP Category          Revenue/Capacity Growth 
Project Type           Business Expansion/New Business Development 
Risk adjusted Discount    8% 
rate 
Key risk factors             Construction risks: the project may encounter
unexpected delays due to unforeseen issues, such as
contaminated soils, which may increase the cost of
the project and/or cause schedule delays. 
Financial risks: general economic conditions will
impact the parking market and if general economic
declines occur in the future, future incremental
revenues may fall short of forecasts. 
A timeframe of 15 years was included in the financial
analysis, covering the initial five-year lease and two
(2) five-year extensions. There is risk associated with
a potential future conversion of the property to nonparking
use, and lease terms associated with future
extensions. 
Project cost for analysis     $5.1 million 
Business Unit (BU)       Landside

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 26, 2013 
Page 5 of 7 
Effect on business        The financial analysis assumes that with construction of the
performance           project improvements at the facility, annual revenues to the
Port will increase. Current revenues to the Port are
approximately $2 million to $2.5 million per year. Within
five years of implementation of the improvements, annual
revenues are anticipated to increase by close to $1 million,
totaling $3.5 million. Within ten years, additional revenues
are anticipated at $2 million, bringing the annual total to
around $4.5 million. 
IRR/NPV           NPV: $5.7 million 
IRR: 13% 
Payback: 6 years 
CPE Impact          None 
Lifecycle costs and Savings: 
Responsibilites for future operations and maintenance costs of the lot facilities are set forth in the
lease agreement between the Port and the lot operator. 
STRATEGIC OBJECTIVES: 
This project aligns with the Port's Century Agenda strategy of advancing the region as a leading
tourism destination and business gateway. Upgrading the Doug Fox Parking Lot for Airport
travelers helps meet the objective of meeting the region's air transportation needs at SeaTac 
Airport for the next 25 years and encourage the cost-effective expansion of domestic and
international passenger and cargo service. In addition, a result of this project will be the ability of
the Airport to increase a current non-aeronautical revenue stream. 
ENVIRONMENTAL SUSTAINABILITY: 
This project will provide the opportunity to apply environmental sustainability principles
associated with the new improvements, including: 
Energy efficient light fixtures; 
Upgrading the drainage system to better manage stormwater; 
Utilizing, if practicable, recycled asphalt to pave the area; and 
Coordinating with the future tenant to improve or replace the existing building using
"green" design standards. 
BUSINESS PLAN OBJECTIVES: 
Approval of the proposed upgrades and the related lease authorization request will contribute to
achievement of the Airport's business plan objective of "maximizing non-aeronautical net
operating income" by generating increased non-aeronautical revenues.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 26, 2013 
Page 6 of 7 
TRIPLE BOTTOM LINE SUMMARY: 
The project supports economic development by investing in an upgraded parking lot to serve the
public's parking needs at the Airport. Environmental sustainability principles will be employed
consistent with Port policy. Also, procedures set forth in the Port's Small Contractors and
Suppliers Program and other small business participation opportunities in support of the Century
Agenda goals will be used when applicable in the project contracting process in coordination
with the Office of Social Responsibility. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1  Do nothing. Do not approve this construction funding request and do not
authorize execution of the new lease with ATZ. The current lease, with holdovers, will
expire March 31, 2013. Port staff would negotiate an amendment to the current lease with
ATZ in order to prepare a revised RFP for a new lease for operation of the facility. Staff
would not implement any improvements to the facility. Without required repairs to the
facility, continued wear and tear would eventually cause the facility to shut down. It
would be uncertain how long the facility could continue to operate under the current
conditions. This is not the recommended alternative. 
Alternative 2  Similar to Alternative 1 above, do not approve this construction funding
request and do not authorize execution of a new lease with ATZ. The current lease with
ATZ would expire March 31, 2013. Staff would negotiate an amendment to the current
lease and prepare an RFP for a new lease for operation of the facility. Staff would not
implement any improvements to the facility. Instead, invest this budget into the Airport
garage and develop a low-cost parking product on two floors of the garage recently
vacated by the rental car companies. This alternative would cannibalize the ability of the
garage to charge premium parking rates on floors just above the low-cost product. This is
not the recommended alternative.
Alternative 3  Proceed with a reduced scope of upgrade work and invest only in critical
infrastructure needs with a lower project cost, such as pavement and lighting, and do not
invest in signage and a new building. The new lease with ATZ would need to be
renegotiated to reflect the reduced investment in facility upgrades. This alternative
would allow for improvement to critical facility systems, thus marginally enhancing the
level of customer service. However, this alternative is not recommended as the facility
will continue to be less competitive due to its poor visibility to customers, and lower level
of customer service compared to other facilities in the Airport parking market. In
addition, this alternative would only defer the required investment in the building as the
current building has an estimated life of two-to-five years. Although there would be
some new incremental revenues, implementing the full array of improvements as part of
Alternative 4 would generate much larger incremental revenues. Implementing partial
improvements under Alternative 3 would probably result in lost construction and cost
efficiencies compared to Alternative 4. Alternative 3 is not the recommended alternative.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 26, 2013 
Page 7 of 7 

Alternative 4  Authorize construction of the proposed improvements to the facility,
including new pavement, new lighting, new signage, and a new building. This alternative 
will satisfy provisions in the proposed new lease with ATZ and will lead to a better
customer experience and enhanced revenues due to an upgraded parking facility that is
more competitive in the Airport parking market. This is the recommended alternative. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Exhibit 1  Doug Fox Lot Service Upgrades 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
May 22, 2012  Commission approved 1) increasing the project scope by adding lot
resurfacing, lighting, building, and road signage work elements; and 2) proceeding with
project design. 
February 14, 2012 - Commission approved funding for design and construction in the amount
of $1,028,000 to install a new Stormwater drainage system by September 30, 2012.