COMMISSION 
AGENDA MEMORANDUM                        Item No.          4f 
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 
Dwight Rives, Director Port Construction Services 
SUBJECT:  North Terminals Utilities Upgrade Project Early Work Mechanical Contract Extension 
(CIP #C800717) 
Amount of this request:              $0 
Total estimated project cost:         $21,335,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to extend the existing North
Terminals Utilities Upgrade Project Early Work Mechanical Contract contact duration by adding
250 days in order to ensure the project can be completed. 
EXECUTIVE SUMMARY 
The purpose of this project is to upsize the existing steam and chilled water supply system to
support the North Satellite and North Star Program. The Commission previously authorized an
Early Work project that includes construction of an open face utility shaft, a precast concrete
Utilidor, and installation of supply piping. The Early Work ensures that the North Terminals
Utilities Upgrade Project (NTUUP) will not interfere with the following Baggage Optimization
program. 
We intended to construct the major features of the project as follows: 
- Construction of utility shaft by Port Crews and a small works contract 
- Construction of utility piping by major works contract 
To allow for the procurement of long-lead items, we have already advertised and awarded the
utility piping contract, but the proposal we received for utility shaft exceeded the small works
contract limit of $300,000, making the contracting method infeasible.  We do not believe it
would be appropriate at this time to add the utility shaft scope to the utility piping contract by
change order. Therefore we propose to employ a second major works construction contract. 
We assess at this time that the project can be constructed with the originally authorized funds. 
To accommodate this change in contracting method of the utility tunnel, the utility piping
contact must be extended 250 days, from 200 days to a revised duration of 450 days. 


Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. __4f__                               Page 2 of 3 
Meeting Date: September 12, 2017 
Port of Seattle Commission, Delegation of Responsibility and Authority to the CEO requires
Commission authorization for the time extension for completion of contract for any single
change order exceeding 60 days. 
JUSTIFICATION 
If this time extension is not approved, the scope of work would need to be re-advertised and
awarded. If this scope of work is not completed as part of the NTUUP Early Work project, the
Baggage Optimization Program will occupy this space and the main NTUUP project design will
require a significant design change to re-route the piping around the baggage system. 
Scope of Work 
The scope includes construction of vertical and horizontal utility tunnel mechanical systems for
the North Terminals Utilities Upgrade Project Early Work. 
Schedule 
The Contractor shall substantially complete the work no later than 450 days following the
contact execution date, which is the date the Port countersigns the agreement.
Activity 
Commission design authorization            April 28, 2015 
Commission construction authorization       June 28, 2016 
Construction start                             October, 2017 
In-use date                                    June, 2018 
Cost Breakdown                                     This Request           Total Project 
Design                                                           $0             $2,411,423 
Construction                                                     $0            $18,923,577 
Total                                                                  $0           $21,335,0000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
This contract extension has a zero dollar cost to the Port of Seattle. This change to the contact
is  requesting  additional  time  to  complete  the  original  task.  If  this  time  extension  is  not
approved the scope of work would need to be re-advertised and awarded. The contractors bid
amount was within 0.04% of the engineers estimate. If this scope of work is not completed as
part of the NTUUP Early Work project, the Baggage Optimization Program will occupy this space
and the main NTUUP project design will require a significant design change to re-route the
piping around baggage system. 


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

COMMISSION AGENDA  Action Item No. __4f__                               Page 3 of 3 
Meeting Date: September 12, 2017 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                $11,950,000         $50,000     $12,000,000 
Previous changes  net                         $11,299,000         $86,000     $11,385,000 
Revised estimate                               $20,299,000      $1,036,000     $21,335,000 
AUTHORIZATION 
Previous authorizations                          $9,036,000        $235,000      $9,271,000 
Current request for authorization                         $0               $0               $0 
Total authorizations, including this request       $9,036,000        $235,000      $9,271,000 
Remaining amount to be authorized           $11,263,000       $801,000    $12,064,000 
Annual Budget Status and Source of Funds 
This project, C800717, is included in the 2017-2021 capital budget and plan of finance at the
estimated cost of $20,299,000. The funding sources will include the Airport Development Fund,
existing and future revenue bonds. 
Financial Analysis and Summary 
Project cost for analysis              Renewal/Enhancement 
Business Unit (BU)                  Renewal/Enhancement 
Effect on business performance     NOE after depreciation will increase 
(NOI after depreciation) 
IRR/NPV (if relevant)                N/A 
CPE Impact                       $0.06 in 2019 
ADDITIONAL BACKGROUND 
This project supports the North Star Program with condensate and chilled water supply and
return lines, with valves and piping connections. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
June 28, 2016  The Commission authorized Early Work package for North Terminals  Utilities
Upgrade Project 
April 28, 2015  The Commission authorized North Terminals Utilities Upgrade Project 

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