PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       6e 
ACTION ITEM             Date of Meeting    July 9, 2013 

DATE:    July 1, 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 Development 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: (1) advertise, 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; and (2) execute a Developer Extension Agreement
with the Valley View Sewer District to connect to a sewer pipeline within the S. 170th Street 
right-of-way. This amount is in addition to $1,796,000 previously authorized for a total project
cost 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 request is for infrastructure upgrades, demolition of the existing building, and
construction of a new building at the lot. There is a separate related request for 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 in this request will meet the provisions of the agreement with ATZ.
The total project budget is estimated to be $5,118,000, and new annual revenue resulting from
the upgrades is estimated to be in the range of $1-$2 million annually. 
The project also includes construction of a sanitary sewer pipeline that will connect with an
existing Valley View Sewer District pipeline in the S. 170th Street right-of-way. The project site

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 1, 2013 
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is currently served by a sewer holding tank that must be pumped periodically.  In order to
connect the site to the sewer district, approximately 190 linear feet of new pipeline will be
constructed within the right-of-way. The  construction value of these improvements is
approximately $20,000. As a condition of connection, the sewer district requires the Port to
enter into a Developer Extension Agreement and dedicate the portion of the new pipeline within
the right-of-way to the district upon completion of the project.  The district will then have
ownership and maintenance responsibility for the dedicated pipeline.  Staff will return to
Commission at a later date with a resolution to surplus and transfer ownership of the new
pipeline to the Valley View Sewer District. 
This project was included in the 2013 - 2017 capital budget and plan of finance. 
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 Parking 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 No. 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.
The environmental review effort for this project was completed with the issuance of a final
Determination of Non-Significance on May 8, 2013. 
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 lease
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.

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Tay Yoshitani, Chief Executive Officer 
July 1, 2013 
Page 3 of 7 
Project Statement: 
Design and construct improvements, including new storm drainage, lot resurfacing, lighting,
signage, new sanitary sewer pipeline, and a new building at the facility by late 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.
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
New stormwater drainage system 
Lot resurfacing 
Lighting system upgrade 
New and improved signage 
Construction of a new sanitary sewer pipeline 
Demolition of existing building 
New building (including supporting infrastructure), cashier booths, and canopy over
entrance/exit lanes 
Schedule: 
Design and Contractor Acquisition Phase: May 2012  September 2013 
Construction Phase: October 2013  September 2014 

FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary: 
Capital     Expense (RMM)     Total 
Original Budget                       $1,665,000            $0    $1,665,000 
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

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 1, 2013 
Page 4 of 7 
Project Cost Breakdown: 
This Request    Total 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 $6,073,000. 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. 
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

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Tay Yoshitani, Chief Executive Officer 
July 1, 2013 
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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, 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
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 
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, revenues are
anticipated to increase by approximately $2 million, bringing
the annual total to around $4.5 million. 
IRR/NPV           NPV: $4.8 million 
IRR: 13% 
Payback: 7 years 
CPE Impact          None 

Lifecycle Costs and Savings: 
Responsibilities 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 atSea-Tac 
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.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 1, 2013 
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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. 
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. In addition, 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 not authorize execution of the new lease with ATZ and do not approve
this construction funding request.  The current lease, with holdovers, will expire
September 30, 2013. Port staff would negotiate an amendment to the current lease with
ATZ in order to have sufficient time to prepare a revised RFP for a new lease for
operation of the facility. Without proposed repairs to the facility, continued wear and tear
would eventually lead to the shutdown of the facility. The new negotiated lease would
likely include significantly lower revenue to the Port due to the poor condition of the
facility. This is not the recommended alternative. 
Alternative 2  Authorize execution of the new lease but only invest in critical
infrastructure needs with a lower project cost, such as pavement and lighting, and do not
invest in signage and a new building. 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. Also, the new lease with ATZ would need to be

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 1, 2013 
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renegotiated to reflect the reduced investment in facility upgrades.  This is not the
recommended alternative. 
Alternative 3  Authorize execution of a new lease with ATZ and invest in proposed
improvements to the facility. This alternative 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. 
March 5, 2013  Commission postponed consideration of the Doug Fox Lot Service
Upgrades Project. 
June 4, 2013  Proposed Doug Fox Lease and Service Upgrades Project was presented to
Commission but no final action was taken.