PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6a 
ACTION ITEM 
Date of Meeting     October 7, 2014 
DATE:    September 29, 2014 
TO:      Ted J. Fick, Chief Executive Officer 
FROM:   Ralph Graves, Managing Director, Capital Development Division 
Dave Soike, Director, Aviation Facilities and Capital Program 
Wayne Grotheer, Director, Aviation Project Management Group 
Janice Zahn, Assistant Director of Engineering, Construction Services 
SUBJECT:  Centralized Pre-Conditioned Air Project at Seattle-Tacoma International Airport 
(CIP #C800238) 
Amount of This Request:        $5,500,000   Source of Funds:  Airport Development
Fund, Revenue Bonds
Est. Total Project Cost:         $55,140,463 
and Grants 
Est. State and Local Taxes:       $3,870,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to (1) increase the project
budget for the Centralized Pre-Conditioned Air Project (PC Air) at Seattle-Tacoma International
Airport by $5,500,000; (2) execute Change Order 220 for Contract MC-0316677, Centralized
Pre-Conditioned Air Project, at Seattle-Tacoma International Airport in the amount of
$1,850,000 and to extend the contract duration by 156 calendar days for a new contract
completion date of May 16, 2014; (3) change the project scope to include Concourse A chilled
water piping anchors, guides, and insulation and replacement of chilled water piping anchors and
guides at the South Satellite and Concourses B & C; (4) execute professional service agreements 
for design of the additional scope; (5) advertise, bid, and execute construction contracts to
complete work associated with this request; and (6) use of Port Construction Services and small
works contracts to complete PC Air installation at four gates.
SYNOPSIS 
Instead  of  aircraft  burning fossil  fuel,  the  PC  Air  project installed  a  system  of  chillers, 
heaters, and pipes that provide both the heating and cooling to the aircraft from a central plant 
at the Airport.  The Airport central plant can more effectively keep aircraft at a comfortable 
temperature when at any of the Airport's gates compared to use of aircraft auxiliary power units 
(APUs).  The flight crews can turn off aircraft auxiliary engines and plug in at the gate to
receive both heated and cooled air, which results in both cost savings to the airlines and
significant environmental benefits to local air quality. 
On September 13, 2010, the Port executed a construction contract for PC Air with Lydig
Construction. During construction, many issues were discovered that were not adequately

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted J. Fick, Chief Executive Officer 
September 29, 2014 
Page 2 of 8 
addressed in contract documents. Change orders were approved to pay for the difference in cost
necessary to resolve individual issues and to extend the project schedule. Change Order 220 will
resolve all remaining cost and schedule issues with the contractor. This additional budget request 
will address remaining issues to complete this project. Work included is as follows: 
1.  $1,065,000 of budget authorization to fund Change Order 220. (Available construction
contingency is $785,000.  $1,065,000 + $785,000 = Change Order 220 amount of
$1,850,000.) This work corresponds to items (1) and (2) in the action request above. 
2.  $3,785,000 to replace the chilled water pipe insulation along Concourse A; and for
installation of insulated anchors and guides along Concourses A, B, C and South Satellite
chilled water piping systems. The Port will advertise, bid, and execute a major work
contract to complete this work. This work corresponds to items (3), (4), and (5) in the
action request above. 
3.  $650,000 for completion of construction at four gates by Port Construction Services. It is
more operationally effective and cost effective to have our own Port crews perform this
work on the four bridges. Future projects where additional aircraft gates are being added
to the terminal would either include PC Air within those projects or would be requested
separately in the future. This work corresponds to item (6) in the action request above.
The total amount of this request is for $5,500,000 for a total estimated project cost of
$55,140,463. Of this total cost, $21,912,679 has been reimbursed to the Airport by an FAA
grant. 
BACKGROUND 
The Centralized PC Air project is a very large and complex project that benefits airlines and
travelers. Regardless of the outside weather conditions, a traveler expects the temperature of 
the inside of an aircraft to be a comfortable 68 to 70 degrees. Generally, an airplane is able to 
achieve the right temperature inside by running an auxiliary jet engine.  To properly condition 
the inside of the airplane cabin, the auxiliary engine burns fossil jet fuel.  If all the jet 
auxiliary engines across all gates are considered, the carbon dioxide generated over a year 
equates to about 8,000 cars on the road, or 40,000 metric tons of greenhouse gases.  The 
estimated amount of jet fuel burned is about 5 million gallons per year. 
Instead of burning fossil fuel, the PC Air project installed a system of chillers, heaters, and 
pipes that provide both the heating and cooling to the aircraft from a central plant at the Airport.
The Airport central plant can more effectively keep aircraft at a comfortable temperature when 
at any of SeaTac's gates. The flight crews can turn off aircraft auxiliary engines and plug in 
at the gate to receive both heated and cooled air. This will lower costs to the airlines while 
producing significant environmental benefits by reducing the release of tens of thousands of 
tons of carbon dioxide emissions each year. This project is an effective way to aid the airlines 
while improving the quality of the environment. The airlines approved funding for this project, 
and  a  Federal  Aviation  Administration  (FAA)  provided grant funding in the amount  of
$21,912,679 for this project.

COMMISSION AGENDA 
Ted J. Fick, Chief Executive Officer 
September 29, 2014 
Page 3 of 8 
PC Air is fully installed on the majority of the Airport's gates; only four gates remain to
complete the project. Work on the four remaining gates was unable to be completed as part of the
original contract because the end of the construction period neared the busy holiday season. The
gates were not able to be taken out of service for the length of time required by the contractor to
do the work. Using port crews and small contractors to complete the work on these four gates
will allow for flexibility in construction scheduling thereby limiting the impact to airport
operations. PC Air construction at the gates will be completed during 2014 and the first quarter
of 2015. Chilled water piping insulation, anchors, and guides work would continue through the
middle of 2016.
The PC Air chilled water system is designed to operate at 20 degrees Fahrenheit. The
construction contract was unclear about the type of anchor and guides to be used on chilled water
piping systems routed to the concourses. To prevent water condensation on the pipe, subsequent
freezing, and damage to the insulation and piping, insulated anchors and guides should have been
more clearly specified. The anchors and guides installed on the South Satellite, Concourse B, 
and Concourse C chilled water piping are not insulated and are not suited for the application.
The system cannot be operated at the design temperature of 20 degrees without damage to
insulation and piping. The project team is currently reviewing this item as a potential Designer
Errors and Omission claim. As directed by change order, the contractor installed the correct
insulated guides and anchors on the chilled water piping system in Concourse D and North
Satellite. 
The fiberglass insulation and uninsulated guides and anchors on the Concourse A chilled water
lines were installed during the South Terminal Expansion Project in 2003, based on the
assumption the future chilled water system would operate at about 36 degrees. The PC air
system as designed in 2010 uses chilled water at 20 degrees. For the actual operating temperature
of 20 degrees, the insulation, anchors and guides need to be replaced with products suitable for
20 degree chilled water service. As an interim fix to minimize damage, the PC-Air contractor
wrapped the piping with a vapor barrier to keep moisture from penetrating the insulation.
However, at guides and anchors, where there is metal pipe to metal guide connection, moisture is
getting into the insulation. Each time the system cycles from temperatures below freezing to
above freezing some amount of damage progresses. This summer the systems are cycling
several times each week. The result is lost efficiency and reduced system life. The inadequate
insulation on Concourse A also impacts system operation at the South Satellite since chilled
water from the Preconditioned Air Central Plant flows through Concourse A en route to the
South Satellite. System cooling capacity, due to thermal losses, is noticeably reduced when
temperatures exceed 80 degrees. Staff is requesting $3,290,000 to advertise, bid and execute a
major work contract to replace the chilled water system insulation on Concourse A and for
installation of insulated anchors and guides on Concourse A, B, C and South Satellite chilled
water piping systems. 
The issuance of Change Order 220 resolves all remaining disputes with the contractor.
Additionally, it reconciles the contract duration to the actual contract completion date of May 16,
2014.

COMMISSION AGENDA 
Ted J. Fick, Chief Executive Officer 
September 29, 2014 
Page 4 of 8 
CHANGE ORDER NO. 220 DESCRIPTION 
The following information relates to the pending change order scope and cost: 
Scope of Work 
This Change Order, for the amount of $1,850,000, resolves all remaining cost disputes between
the Port and the contractor and reconciles the contract duration with a time extension of 156
calendar days, to the final completion date.
Justification 
This change order is an agreed settlement concluding formal negotiations that resolves
$3.4 million in outstanding contractor change requests and claims. Included are costs related to
the contractor and subcontractor extended field office overhead due to Port-caused delays,
contractor inefficiencies due to the amount and nature of the changed work throughout the
project, and disputes related to the pipe insulation and support requirements. Included in the
amount was consideration from the contractor in lieu of Liquidated Damages due to their own 
unexcused delay in achieving contract completion on time. 
CONTRACT INFORMATION 
The following information relates to the contract and competitive award: 
Contract award date:                         September 13, 2010 
Original period of performance:    September 13, 2010  December 11, 2012 
Previous contract extensions:                           367 Days 
Current Contract Complete Date:                 December 13, 2013 
Contract extension this change order:                      156 Days 
Revised Contract Completion Date:                   May 16, 2014 

Original contract amount:                        $27,013,400.00 
Previous Change Orders Executed:                   $8,159,872.00 
Current contract amount                         $35,173,272.00 
This request, Change Order No. 220                  $1,850,000.00 
Revised Contract Amount                      $37,023,272.00 
PROJECT JUSTIFICATION AND DETAILS 
Although the cost of the project has increased, the financial benefits remain attractive. While
the capital costs are paid by the Port, the benefits are realized by the airlines. The "payback" is
therefore a combination of Port costs and airline benefits. The following is based on the 2014 
jet fuel price of $3.06 per gallon minus 10% for energy costs, which is a rough percentage
estimate.

COMMISSION AGENDA 
Ted J. Fick, Chief Executive Officer 
September 29, 2014 
Page 5 of 8 
The benefit is the potential annual savings of 5 million gallons of jet fuel.
5,000,000 gallons of jet fuel saving per year @ $2.75 net benefit = $13,750,000 per year. 
$50 million project cost minus $21.9 million VALE Grant: $28.1 million 
Port cost. 
Previous payback period = 2.0 years 
$55 million project cost minus $21.9 million VALE Grant: $33.1  million 
Port cost. 
Payback period with this request = 2.4 years 
Project Objectives 
Project objectives remain as follows: 
Construct the PC Air system, with an associated central plant including individual PC Air gate
units at all passenger loading bridges that will accomplish the following: 
Decrease the amount of energy used to heat and cool the aircraft. 
Significantly reduce the amount of CO2 and other air emissions produced. 
Provide aircraft with cabin heating and cooling while eliminating the need for using the
onboard APU, which consumes jet fuel. 
Minimize lifecycle costs. 
Minimize fuel consumption. 
Minimize ramp noise. 
Scope of Work 
Successfully negotiate construction related disputes. 
Complete the PC Air installation at gates S-3, S-16, D-1, and N-6. 
Initiate a new work project and execute a major works contract to replace the insulation on
Concourse A, and the anchors and guides on Concourse A, B, South Satellite and North utility
tunnel. 
Schedule 
Re-install PC-Air at gates S-3, S-16 and D1  4Q, 2014. 
Install PC-Air Unit and Telescoping Air Duct at Gate N-6 1Q, 2015. 
Design and prepare contract documents for anchors, guides and insulation on Concourse
A, B and South Satellite. 3Q, 2014  2Q, 2015. 
Bid  2Q, 2015. 
Install anchors and guides4Q, 2015-2Q, 2016. 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                     $40,010,000     $590,000   $40,600,000

COMMISSION AGENDA 
Ted J. Fick, Chief Executive Officer 
September 29, 2014 
Page 6 of 8 
Budget Increase/(Decrease)              $14,710,463    $(170,000)   $14,540,463 
Revised Budget                     $54,720,463     $420,000   $55,140,463 
Previous Authorizations                $49,220,463     $590,000   $49,810,463 
Current request for authorization            $5,500,000           0    $5,500,000 
Total Authorizations, including this request    $54,720,463      $590,000    $55,310,463 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost             $54,720,463     $420,000    $55,140,463 
Project Cost Breakdown                     This Request       Total Project 
Construction                              $4,585,000        $46,070,463 
Design                                   $550,000         $5,200,000 
State & Local Taxes (estimated)                   $365,000         $3,870,000 
Total                                      $5,500,000         $55,140,463 
Budget Status and Source of Funds 
This project (CIP #800238) was included in the 2014-2018 capital budget and plan of finance
with a budget of $47,235,000. Since that time, the Commission approved budget increases of
$965,000 in October 2013 and $850,000 in February 2014. In addition, savings of $170,000
from an authorized expense portion of the project was transferred to the capital budget. The 
current budget of $5,500,000 will be transferred from CIP #C800404, Aeronautical Allowance,
resulting in no net change to the 2014-2018 capital budget.  The  funding plan includes 
$21.9 million in VALE program grants, existing revenue bonds, and the Airport Development 
Fund.  This  project  was  reviewed  by the  airline  representatives  and  approved through a 
Majority-In-Interest vote in June 2008. 
Financial Analysis and Summary 
CIP Category             New/Enhancement 
Project Type              Infrastructure 
Risk adjusted discount rate     10% 
Key risk factors             Realization of savings due to lower jet fuel usage 
Project cost for analysis        $33,240,000 (total cost excluding grants) 
Business Unit (BU)          Terminal cost center 
Effect on business performance  NOI after depreciation will decrease due to recognizing 
depreciation on the full cost yet recovering capital costs 
for the non- VALE funded portion only 
IRR/NPV             NPV range of net saving to airlines: $5 million to $30 
million. (calculated in 2010) 
CPE Impact             CPE will increase by $.16 in 2014; however, this cost will 
be offset by decreased airline operating costs. This project 
was included in the business plan forecast. 
STRATEGIES AND OBJECTIVES 
The PC Air project supports the following Port strategies:

COMMISSION AGENDA 
Ted J. Fick, Chief Executive Officer 
September 29, 2014 
Page 7 of 8 

Ensure Airport Vitality: 
This project will provide a cost effective and efficient heating and cooling system for aircraft
parked at the gates. It will have a positive effect on the airline's operating costs by reducing fuel
consumption through reduced APU operation. 
TRIPLE BOTTOM LINE 
Economic Development 
Net savings to airlines from reduced fuel usage is $13,750,000. 
Environmental Responsibility 
There are significant air quality improvements achieved by installing a centralized preconditioned
air system. Carbon dioxide emissions and other emissions could be reduced by more
than 69,000 metric tons per year, which represents 2% of emissions from aircraft at the Airport
and is roughly equivalent to taking 13,500 cars off the road. 
Community Benefits 
Airport noise will also be reduced with reduction in APU usage. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Reduce the project scope to eliminate PC Air at four gates and do not replace
chilled water piping insulation on Concourse A; and guides and anchors on Concourse A, B, C,
and South Satellite chiller water piping. With PC Air available at the gates, fuel saving from not
running auxiliary power units varies from approximately $50,000 to $200,000/year depending on
gate use. Cost to install PC Air at these gates is approximately $100,000/gate.
Operating the system with the existing Concourse A insulation and uninsulated guides and
anchors cause inefficiencies and system damage. During operation this summer the system was
unable to meet cooling needs because of inadequate Concourse A insulation. The freezing
condensation will progressively damage the insulation resulting in greater inefficiencies and
significantly shorter system life. This is not the recommended alternative. 
Alternative 2) Complete the reinstallation of PC Air at the four gates and replace the chilled
water pipe insulation on Concourse A, and guides and anchors on Concourse A, B, C, and South
Satellite. This will take advantage of the potential fuel saving and environmental benefits. It
will also improve the system efficiency and eliminate damage caused by the thermal cycles.
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
PowerPoint Presentation

COMMISSION AGENDA 
Ted J. Fick, Chief Executive Officer 
September 29, 2014 
Page 8 of 8 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
On February 25, 2014, the Commission authorized a budget increase of $850,000 to
replenish construction contingency.  Additionally, the Commission authorized the 
execution of Change Order No. 181 in the amount of $531,930 to resolve costs for
subcontractor extended overhead expenses related to a schedule and contract extension. 
On October 22, 2013, the Commission authorized a budget increase of $965,000 to
replenish construction contingency due to disputed costs. Additionally, the Commission
authorized the execution of Change Order No. 173 in the amount of $453,143 to resolve
the costs related to changes to the pipe hangers/supports and seismic restraints for the PC
Air mechanical plant piping. 
On September 10, 2013, the Commission authorized a budget increase of $600,000 for
the project design consultant and Port staff support through the completion of the project. 
On May 28, 2013, the Commission authorized execution of Change Order 166, a contract
extension of 221 days, which established a new project completion of August 26, 2013. 
On November 27, 2012, the Commission authorized a budget increase of $1,100,000 to
replenish  construction  contingency due  to  disputed  costs.    Additionally,  the 
Commission authorized the execution of Change Order No. 121 in the amount of 
$344,558 to resolve the remaining disputed costs related to Change Order No. 113 due to 
changes in the routing of PC Air piping at Concourse D. 
On October 2, 2012, the Commission authorized a budget increase of $2,000,000 to 
cover additional costs related to construction, design support, and Port Construction 
Services and Port Maintenance support for the project.  Additionally, the Commission 
authorized the execution of Change Order 119 in the amount of $509,013 for additional 
costs related to the North Satellite Tunnel pipe routing. 
On September 11, 2012, the Commission authorized execution of Change Order 113 
in the amount of $776,910 for changes to the pipe routing at Concourse D.  Total 
project funding authorization remained at $40,600,000. 
On September 27, 2011, the Commission authorized a budget increase $3,525,000 to 
cover additional costs to the construction budget, outside professional services and 
project management soft costs.  Total project funding  authorization increased to
$44,125,000. 
On May 24, 2011, the Commission authorized execution of a $400,000 amendment to 
the professional  service  agreement  with  Stantec  Consulting.  Total  project  funding
authorization remained at $40,600,000. 
On May 11, 2010, the Commission authorized staff to advertise for bids, apply a Project 
Labor Agreement (PLA), and authorize Port Construction Services to perform preconstruction
work, including moving tenants, for Phase I and Phase II of the PC Air 
Project  (CIP  #  C800238)  at  the Airport  and  execute  a construction contract.  This 
authorization was for $36,830,000. The estimated total project cost is $40,600,000. 
On January 13, 2009, the Commission authorized procurement and execution of service
agreements with consultants to perform design, prepare contract documents, and perform
contract  administration  for the  Pre-Conditioned  Air  project  at  Seattle-Tacoma 
International Airport in the amount of $3,770,000.