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

DATE:    March 7, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Ralph Graves, Managing Director, Capital Development 
Dwight Rives, Director, Port Construction Services 
SUBJECT:  Additional Regulated Materials Management (RMM) for United and Delta
Ticketing Projects 
Amount of This Request:  $1,049,930, which includes: 
$ 950,000 Abatement Contract Change Orders and 
$ 99,903 Construction Management and Abatement Monitoring 
To be distributed as follows: 
$ 565,520 Project Budget Increase  United Project 
$ 484,410 Project Budget Increase  Delta Project 
Source of Funds: Airport Development Fund 
Est. State and Local Taxes: $212,557 (9.5% sales tax on abatement contract) 
Est. Jobs Created: 11 
Est. Total Project Cost:    $ 2,450,000 Abatement Contract 
$16,612,910 Project Budget  United Project 
$13,609,410 Project Budget  Delta Project 
ACTION REQUESTED: 
Request Commission authorization for the Chief Executive Officer to: (1) increase the project
budget by $565,520 for the United Airlines Tenant Improvements Project; (2) increase the
project budget by $484,410 for the Delta Ticketing and ATO Modifications Project; (3) issue
two change orders totaling $950,000 for Contract MC-0317304, Delta Lobby/Airline Ticket
Office (ATO) United TKT/ATO RMM Abatement On Call 2012 for additional asbestos
abatement required to complete both the Delta Air Lines (Delta) and United Airlines (United)
projects; and (4) extend the contract end date through November 15, 2014. The total amount of
this request is $1,049,930. 
SYNOPSIS: 
United and Delta are both doing major projects at the Airport and the Port executed the
referenced construction contract to provide asbestos abatement for both projects. Construction
phasing has changed significantly during the course of the abatement work to accommodate the
project construction schedules and the move out schedules of the airlines. As a result, additional

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 7, 2013 
Page 2 of 6 
abatement costs of $950,000 have been identified that were unforeseen at bid time. Change
Order 001 totals $410,000, and Change Order 002 totals $540,000. 
The change orders are required to cover the additional costs and to keep the construction
schedules for both projects intact. The increased abatement costs and additional construction
management costs necessary to support the abatement require increasing the budgets for
regulated materials management (RMM) on both the United and Delta Projects. 
BACKGROUND: 
This RMM contract was established in September 2012 to support two specific projects at the
Airport; 1) the conversion of the existing Delta ticket counters to a flow through design and 2)
the relocation of the United ticket counter and offices which is taking place as part of the
Airport-wide airline realignment effort.
Work began on the Delta ticketing project in November 2012 and is scheduled to be complete at
the end of October 2013. Work began on the United ticketing project in February 2013 and is
scheduled to be complete at the end of May 2013. 
In order to start abatement well in advance of the construction projects, the abatement bid
documents and cost estimates were developed using concept and 30% construction design
documents. Once construction design was completed, additional abatement areas were
identified. In addition, a construction schedule had not been established at the time of the
abatement bidding. An accelerated construction schedule and changes to the phasing on the
Delta project added further RMM costs.
The regulated materials abatement work in these locations must be finished before construction
can be completed and therefore is a critical schedule element for each of these projects. 
CHANGE ORDER DESCRIPTION: 
A $410,000 portion of the projected $950,000 abatement cost is for Critical Work where
Commission authorization could not be obtained (even on an expedited basis) before the work
needed to occur. If this Critical Work had been delayed, it would have resulted in significant
cost increases and adverse schedule impacts. This Critical Work was authorized by Tay
Yoshitani on February 28, 2013, in accordance with Port Resolution No. 3605, as amended,
Section 4.2.3.7. Change Order #001 in the amount of $410,000 was executed on March 1, 2013, 
to allow the contractor to perform the Critical Work without interruption. Change Order #002 in
the amount of $540,000 will cover the remainder of the additional abatement work. The scope
and cost of the referenced change orders are discussed below. 
Change Order No. 001 - Critical Work 
Scope of Work: The abatement contractor shall provide the following Critical Work: 
United (Zone 2) 
Abatement and demolition on the bridge level and bagwell 
Delta (Zone 3) 
Abatement and demolition of the Delta Sky Priority area

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 7, 2013 
Page 3 of 6 
Abatement and demolition of the old Delta ATO space 
Saw cut and dispose of floor slab sections for the new conveyors 
Abate the bridge level beams behind the wall at gridline "H" 
Saw cut and abate for seismic bracing relocation 
Change Order No. 002  Work to Complete Construction 
Scope of Work: The abatement contractor shall perform the following work: 
United (Zone 2) 
Abatement of the ANA ticket counter area 
Saw cut and dispose of floor slab sections for the new conveyors 
Abatement of HVAC equipment at the north end 
Miscellaneous and "spot" abatement to support the United Project 
Delta (Zone 3) 
Saw cuts and core drills to facilitate hoisting of structural steel 
Removal of terrazzo flooring at the work area perimeter for floor refinishing 
Abatement of the Virgin America ATO space 
Miscellaneous and "spot" abatement to support the Delta Project 
JUSTIFICATION: 
Subsequent to the execution of the abatement contract, it was discovered that the construction
design did not include enough information for the contractor to properly bid all of the work
required to complete the United and Delta Projects. In addition, abatement phasing was changed
significantly to accommodate the construction schedule of the United and Delta tenant project
general contractors and the move out schedule of the airlines. The additional work and project
coordination are necessary to complete abatement in the United and Delta work areas. As
previously discussed, abatement work is a critical schedule element for both the United and
Delta Projects. 
CONTRACT INFORMATION: 
The following information relates to the contract and competitive award: 
Contract Award Date                        November 15, 2012 
Original Period of Performance     November 15, 2012  November 15, 2013 
Previous Contract Extensions                       0 Working Days 
Contract Extension on this Change Order              260 Working Days 
Current Contract Completion Date                 November 15, 2014

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 7, 2013 
Page 4 of 6 
FINANCIAL INFORMATION: 
United Project (Zone 2) 
Budget/Authorization Summary             Capital      Expense   Total Project 
Original Budget                       $3,982,540    $12,064,850    $16,047,390 
Budget (Decrease)/Increase                     $0      $565,520      $565,520 
Revised Budget                      $3,982,540    $12,630,370    $16,612,910 
Previous Authorizations                  $3,982,540    $12,064,850    $16,047,390 
Current request for authorization                   $0      $565,520      $565,520 
Total Authorizations, including this request     $3,982,540    $12,630,370    $16,612,910 
Remaining Budget to be authorized                $0          $0          $0 
Total Estimated Project Cost               $3,982,540    $12,630,370    $16,612,910 
Budget Status and Source of Funds: 
This project was included in the 2013  2017 capital budget and plan of finance within CIP
C800491. The funding source will be the Airport Development Fund. The total RMM
abatement costs for the Project will be spread over 2011 through 2013. The Airport included
costs for RMM in the respective expense budgets for each year. All of the costs will be
incorporated into airline rates and charges and recovered through terminal rents. The current
request was not anticipated in the 2013 operating budget. The funding source will be the Airport
Development Fund. 
Financial Analysis and Summary: 
As there is no change to the capital budget, what follows is the financial impact of the operating
budget increase. 
CIP Category             Ticketing Strategy 
Project Type              Capacity 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        $565,520 expense 
Business Unit (BU)          Terminal 
Effect on business performance  NOI after depreciation will not change as costs will be
incorporated into terminal rents. 
IRR/NPV             N/A 
CPE Impact             $0.033 CPE increase in 2013. 
Delta Project 
Budget/Authorization Summary             Capital      Expense   Total Project 
Original Budget                      $11,507,000    $1,347,000    $12,854,000 
Budget (Decrease)/Increase                     $0      $484,410      $484,410 
Revised Budget                     $11,507,000    $1,831,410    $13,338,410 
Previous Authorizations                 $11,778,000    $1,347,000    $13,125,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 7, 2013 
Page 5 of 6 
Current request for authorization                   $0      $484,410      $484,410 
Total Authorizations, including this request     $11,778,000     $1,831,410    $13,609,410 
Remaining Budget to be authorized                $0          $0          $0 
Total Estimated Project Cost              $11,778,000     $1,831,410    $13,609,410 
Budget Status and Source of Funds: 
The Conversion of Zone 3 Ticket Lobby to Flow-Through Concept Project was included in the
2013-2017 capital budget and plan of finance within (CIP #C800492). The Airport included
costs for RMM in the expense budgets for 2012 and 2013. All of the costs will be incorporated
into airline rates and charges and recovered through terminal rents. The current request was not
anticipated in the 2013 operating budget. The funding source will be the Airport Development
Fund. 
Financial Analysis and Summary: 
As there is no change to the capital budget, what follows is the financial impact of the operating
budget increase. 
CIP Category             Ticketing Strategy 
Project Type              Capacity 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        $484,410 expense 
Business Unit (BU)          Terminal 
Effect on business performance  NOI after depreciation will not change as costs will be
incorporated into terminal rents. 
IRR/NPV             N/A 
CPE Impact             $0.028 CPE increase in 2013. 
Contract MC-0317304 
Original Contract Amount                                $1,500,000 
Previous Change Orders Executed                                $0 
Current Contract Amount                                $1,500,000 
This Request, Change Order 001 (Critical Work)                    $374,429 
Anticipated Sales Tax @ 9.5%                               $35,571 
Subtotal                                                  $410,000 
This Request, Change Order 002                              $493,151 
Anticipated Sales Tax @ 9.5%                               $46,849 
Subtotal                                                  $540,000 
Total Change Orders                                     $950,000 
Revised Contract Amount                                $2,450,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 7, 2013 
Page 6 of 6 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
PowerPoint presentation titled: Regulated Material Management (RMM) for United and
Delta Airlines (Zone 2 and Zone 3) 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
September 11, 2012  Port Commission authorized the Chief Executive Officer to: (1) 
advertise and execute a construction contract for regulated materials management
(RMM) abatement for the Zone 2 Ticket Counter and Offices; (2) use Port crews for
construction to support RMM abatement; and (3) execute a contract for moving
services to relocate airline tenants, all associated with the Airline Realignment Tenant
Improvements Project at Seattle-Tacoma International Airport. The cost of the RMM
and moving services is $730,000 (expense). 
August 14, 2012  Port Commission authorized the Chief Executive Officer to: (1)
authorize $10,145,200 of tenant reimbursement budget associated with the design and
construction of a new flow-through ticketing area for Delta Air Lines and Virgin
America Airlines at Seattle-Tacoma International Airport; (2) execute a tenant
reimbursement agreement with Delta for this purpose under the Airport's AV-2 Policy;
(3) authorize $2,663,800 of non-tenant reimbursement budget for regulated materials 
abatement; and (4) authorize the use of Port crews to construct a new Virgin America
airline ticket office and remodel spaces for two other offices that must be relocated to
accommodate this project. This request seeks a single Commission authorization to
proceed with design, abatement, and construction. The total estimated cost of this
project is $13,125,000. The Port's portion of the total project is $10,145,200. 
February 26, 2013  Briefing to Commission of the Critical Work authorized and
underway and the anticipated cost overrun and need for additional funding and change
orders.