COMMISSION 
AGENDA MEMORANDUM                        Item No.          4e 
ACTION ITEM                            Date of Meeting    September 12, 2017 
DATE:     August 24, 2017 
TO:        Dave Soike, Interim Executive Director 
FROM:    Wayne Grotheer, Director, Aviation Project Management Group 
Michael Ehl, Director, Aviation Operations 
SUBJECT:  Gate D6 Modifications at Seattle-Tacoma International Airport (CIP #C800771) 
Amount of this request:                 $467,000 
Total estimated project cost:          $2,200,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to increase the budget for the D6
Gate Modifications project by $467,000. The new authorized total project cost will be
$2,200,000. 
EXECUTIVE SUMMARY 
On January 26, 2016, the Commission authorized the design, execution of a procurement
contract for structural steel and the use of Port Construction Services to construct a sloped 
walkway ramp for Gate D6 to serve passenger loading for hardstand operations. The steel
procurement incurred additional costs due to quality issues. In order to meet crucial deadlines 
additional labor costs have been incurred as well. The sloped walkway opened for use in a 
partially complete state in June 2017. 
JUSTIFICATION 
Steel fabrication and preparation have been a problem on this project requiring extra time and
additional costs. In September 2016 the Port opened bids for steel fabrication for this project.
While the bid was surprisingly low, the bidder assured staff it could complete the work. As part
of the inspection process for the structural steel procurement for the project, staff became
aware of deficiencies in its quality. This became critical during the finishing stage when the
galvanizing began delaminating and peeling off the steel. Ultimately it became clear that in
order to stay on schedule to complete the project the Port needed to take possession of the
steel and complete its finishing and delivery to the site. During construction additional
dimensional deficiencies were encountered that required further work to correct. This work
now requires the steel be re-painted as the work to repair these deficiencies defaced the
original finish. The project manager is working with CPO to determine whether we have a
means to recover some of the costs back from the steel fabricator. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. _4e___                              Page 2 of 4 
Meeting Date: September 12, 2017 
During construction as these delays and need for additional work surfaced, the team
anticipated using project savings primarily from the low bid in order to stay within budget. As
the delays mounted additional resources were required in order to open this facility and serve
its intended need. Thus this request is now necessary in order to complete the project. The final
phase of construction to install glazing around the ramp structure and thus provide an
inclement weather shield has been placed on hold pending the outcome of this request. 
DETAILS 
Scope of Work 
(1)   Re-painting the structural steel 
(2)   Glazing the walkway 
Small Business 
This on-going project has achieved 32% small business utilization thus far. The above scope of
work will provide additional small business opportunities. Project management staff will
continue to work with the Port's small business group in their continuing efforts to promote
and outreach to interested small and diverse businesses.
Schedule 
The project will now be completed in Q3 2017. 
Cost Breakdown                                     This Request           Total Project 
Design                                                           $0               $239,000 
Construction                                              $467,000             $1,961,000 
Total                                                           $467,000              $2,200,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do not repaint or add glazing to the walkway 
Cost Implications: $0 
Pros: 
(1)   No additional funding needed 
(2)   Project will be completed sooner 
Cons: 
(1)   The walkway will not be presentable 
(2)   The passengers will not be sheltered from inclement weather 
This is not the recommended alternative. 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. _4e___                              Page 3 of 4 
Meeting Date: September 12, 2017 
Alternative 2  Complete the project with painting and glazing at an additional cost 
Cost Implications: $467,000 
Pros: 
(1)   The walkway will be presentable to arriving customers 
(2)   The passengers will stay dry during inclement weather 
Cons: 
(1)   It will require additional funds 
(2)   The project will take a little longer to complete 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                 $1,400,000               $0      $1,400,000 
Previous changes                                 $333,000               0       $333,000 
Current change                                   $467,000               0       $467,000 
Revised estimate                                $2,200,000                0      $2,200,000 
AUTHORIZATION 
Previous authorizations                          $1,733,000                0      $1,733,000 
Current request for authorization                  $467,000                0        $467,000 
Total authorizations, including this request       $2,200,000                0      $2,200,000 
Remaining amount to be authorized                    $0             $0             $0 
Annual Budget Status and Source of Funds 
The Gate D6 Modification (CIP #C800771) was included in the 2017-20121 capital budget and
plan of finance with a budget of $1,733,000. A budget increase of $467,000 will be transferred
from the Aeronautical Allowance CIP #C800753 resulting in a zero net change to the Airport
capital budget. The funding source for this project is the Airport Development Fund. 
Financial Analysis and Summary 
Project cost for analysis                         $2,200,000 
Business Unit (BU)                            Terminal 
Effect on business performance (NOI after    NOI after depreciation will decrease 
depreciation) 
IRR/NPV (if relevant)                           N/A 
CPE Impact                                 $.01 in 2017 


Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. _4e___                              Page 4 of 4 
Meeting Date: September 12, 2017 
ATTACHMENTS TO THIS REQUEST 
Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
January 26, 2016    The Commission authorized in a single authorization the design,
procurement of the steel walkway, casework and equipment and the use of Port
Construction Services at Seattle-Tacoma International Airport for a total estimated
project cost of $1,733,000. 
May 26, 2015  Aviation Division Business Plan Overview 
April 28, 2015  Commission Briefing: Sustainable Airport Master Plan (SAMP) 














Template revised September 22, 2016; format updates October 19, 2016.