PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      5b 
ACTION ITEM 
Date of Meeting    February 25, 2014 
DATE:    February 4, 2014 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Ralph Graves, Managing Director, Capital Development Division 
Wayne Grotheer, Director, Aviation Project Management Group 
Janice Zahn, Assistant Director of Engineering, Construction Services 
SUBJECT:  Change Order 181 for Centralized Pre-Conditioned Air Project at Seattle-
Tacoma International Airport MC-0316677 
Amount of This Request:         $850,000   Source of Funds:   Airport Development
Fund, Revenue Bonds 
Est. Total Project Cost:         $49,640,000 
and Grants 
Est. State and Local Taxes:       $3,560,673   Est. Jobs Created:        N/A 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to: (a) issue Change Order
No. 181 for Contract MC-0316677, Centralized Pre-Conditioned Air (PC Air) Project at Seattle-
Tacoma International Airport, in the amount of $531,930 to address the undisputed costs for
subcontractor extended overhead expenses related to a schedule extension and to extend contract
time to December 13, 2013; and (b) approve an additional authorization of $850,000 to replenish
construction contingency due to resolution of disputed costs. 
SYNOPSIS 
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 addressed in
contract documents. In multiple previous Commission actions, change orders were approved 
to pay for the difference in cost necessary to resolve individual issues and to extend the project
schedule. 
The additional $850,000 in funding is needed to replenish the contingency and to pay change
orders (including Change Order No. 181) that are being issued to resolve construction-related
disputes. As there are still dispute issues to resolve along with the indirect costs associated with 
the  schedule  delays,  staff  intends  to return to Commission as required for additional
authorization as those disputes and costs are resolved. As there are multiple issues affecting the
completion of the work, additional time may be granted by separate change order after an
analysis of whether a  specific issue impacted the project critical path and delayed the

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 7, 2014 
Page 2 of 6 
construction schedule. The project achieved Beneficial Occupancy for the entire system on
December 30, 2013.
CHANGE ORDER NO. 181 DESCRIPTION 
The following information relates to the pending change order scope and cost: 
SCOPE OF WORK 
This Change Order resolves all subcontractor costs for extended overhead expenses due to the
extended period of performance related to the current contract completion of 12/13/13 for the
amount of $531,900. This change order also extends the contract completion from 8/26/13 to
12/13/13. 
JUSTIFICATION 
Additional time is being granted after an analysis of the project critical path. 
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 12, 2012 
Previous contract extensions:                     258 Working Days 
Contract extension this change order:                      109 Days 
Current Contract Completion Date:                December 13, 2013 
FINANCIAL INFORMATION 
Original contract amount:                        $27,013,400.00 
Previous Change Orders Executed:                   $7,604,291.00 
Current contract amount                         $34,617,691.00 
This request, Change Order No. 121                    $531,930.00 
Subtotal Construction Costs                       $35,149,621.00 
Anticipated sales tax @ 9.5%                        $3,339,214.00 
Revised Contract Amount                       $38,488,735.00

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 7, 2014 
Page 3 of 6 
The PC Air system is currently operational and the construction project is projected 
to be Substantially Complete by the end of first quarter of 2014.  A l l t h e i n d i r e c t
costs related to the construction contract have not been fully addressed at this time, as the causes 
and the costs associated with the schedule delays are currently in dispute and remain to be
resolved.  As  stated  previously,  staff  will return to Commission when the final contract
completion date is known and costs are finalized. 
BACKGROUND 
Lydig Construction was the low bidder with contract execution on September 13, 2010.  The
original contract completion date was December 12, 2012.  There have been two contract
extensions granted, extending the current contract completion by 258 days to August 26, 2013.
Despite the design and contracting challenges, the project is operational on all Concoursesand 
Satellites. Cost growth is far less than the value of the $21.9 million in FAA grants that were 
made possible by the expedited design prior to awarding the contract. Nevertheless, project 
completion slid from the August 26, 2013 date; substantial completion is now scheduled 
for the first quarter of 2014. 
PROJECT JUSTIFICATION AND DETAILS 
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 is 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 the airplane at a comfortable temperature when 
it is at any one 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 (CO2) emissions each year. 
This project is a cost-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) Voluntary Airport Low Emission (VALE) grant was obtained. The FAA
provided $21,912,679 in grants for this project. 
The  most  challenging  part  of  building  this  project  has  been  the  piping  installation. 
Conditioned (chilled and heated) glycol is circulated in these pipes from a central location to

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 7, 2014 
Page 4 of 6 
every aircraft gate. The  passenger loading bridge structure is used as the final link to provide 
warm or cooled air to the airplane passenger cabin. The glycol piping is large (6", 8" and 10" 
in diameter) and because it is full of liquid, it is very heavy.  It is hung from large hangers that 
penetrate walls, is supported by structural beams and columns across the varying concourses, 
and has to run for miles across building walls and roofs. This project includes the installation 
of 15 miles of piping within our existing terminals and going to each jet doorway at 73 gates. 
The installation is complete and airlines are using the system. 
Change Order 181 resolves all costs associated with Lydig's subcontractor extended overhead
through the extended period of performance ending on 12/13/13. The additional funds req uested
resolve other construction disputes with the contractor where the amount of change order  did 
not require Commission action, some of the items include a labor inefficiency claim by Shinn
Mechanical and a pipe inserts and shields application claim for the chilled water piping. 
Although the cost of the project has increased, the financial benefits remain attractive.  The
following is based on today's jet fuel price of $3.06 per gallon minus 10% for energy costs 
(rough number). 
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 = $13,750,000per 
year. 
$45 million project cost minus $21.9M VALE:  $23.1M Port cost.
Payback period = 1.7 years 
$50 million project cost minus $21.9M VALE:  $28.1M Port cost.
Payback period = 2.0 years 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                     $40,600,000          $0   $40,600,000 
Previous Authorizations                 $48,200,000     $590,000   $48,790,000 
Current request for authorization              $850,000          $0      $850,000 
Total Authorizations, including this request    $49,050,000      $590,000    $49,640,000 
Remaining budget to be authorized                $0          $0          $0 
Total Estimated Project Cost              $49,050,000      $590,000   $49,640,000 
Project Cost Breakdown                     This Request       Total Project 
Construction                                $766,256        $36,589,498 
Construction Management                         $0        $3,116,244

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 7, 2014 
Page 5 of 6 
Design                                       $0         $3,759,000 
Project Management                             $0        $1,486,449 
Permitting                                      $0          $236,856 
State & Local Taxes (estimated)                    $73,744         $3,560,673 
Total                                       $850,000         $49,640,000 
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.  The budget was increased by $965 thousand in October 
2013. The current budget increase of $850,000 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        $27,740,000 (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 $.13 in 2014; however, this cost will 
be offset by decreased airline operating costs. This project 
was included in the business plan forecast. 

ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
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.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 7, 2014 
Page 6 of 6 

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 pre-construction 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.