PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA                      Item No.         5d 
ACTION ITEM 
Date of Meeting     September 10, 2013 
DATE:      August 28, 2013 
TO:         Tay Yoshitani, Chief Executive Officer 
FROM:     David Soike, Director, Aviation Facilities and Capital Program 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:   Centralized Pre-Conditioned Air Project at Seattle-Tacoma International Airport 
CIP # C800238
Amount of This Request:     $ 600,000   Source of Funds: Airport Development Fund,
Revenue bonds, Grants 
Est. Total Project Cost:    $ 47,825,000 
Est. State and Local Taxes: $ 3,403,209 
ACTION REQUESTED
Request Commission authorization to increase funding for the Centralized Pre-Conditioned Air
Project (PC Air) at the Seattle-Tacoma International Airport by $600,000 for the project design
consultant and Port staff support through the completion of the project.  In accordance with RCW
53.19.060, this memorandum constitutes notification to the Commission that the amended amount of
the design contract exceeds 50 percent of the original not-to-exceed contract value. 
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 previous Commission actions, change orders were approved to make the
required modifications, increase construction direct costs and extend the project schedule by 258
days to August 26, 2013. 
However, these earlier requests did not address indirect costs related to the extended project
schedule including: 
The consultant design team 
Port of Seattle staff
Additionally, contract time extension impact costs are being negotiated with the contractor, and a 
separate request for additional funding for these costs will follow when negotiations are
complete. This project was included in the 2013  2017 capital budget and plan of finance, and
additional funding to cover this budget increase of $600,000 will be transferred from CIP
#C800404, Aeronautical Allowance, resulting in no net change in the 2013  2017 capital
budget. 

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 28, 2013 
Page 2 of 6 
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. 
This request is for a $600,000 increase in project soft costs associated with the contract
extension. 
Including this request for $600,000, the project budget has increased from $40,600,000 to
$47,825,000. The budget increase has paid for change orders, added to construction contingency
for potential change orders, and covered additional consulting and additional Port crew costs.
The change orders have been due to design errors or omissions due to an accelerated design
period, access challenges for piping installation, resolution of conflicts and interferences for
piping installation given existing conditions, revisions in building and electrical codes, and
changes in Port requirements since the project was bid. The Port incurred additional costs to
review change orders and to resolve design issues during construction. Additional Port crew
costs were also expended to open and close ceilings and walls in occupied areas, shut down
utilities during construction, and test equipment following construction. 
On July 29, 2009, the Port executed a contract with Stantec Consulting for design and
engineering support during construction for the PC-Air project at the Airport in the amount of
$2,011,564.  Subsequent to execution of the initial contract, a total of nine amendments have
been executed.  Amendments Nos. 1, 2, 3, and 5 were for clarification of positions and
adjustment of rates.  Amendment No. 4 was approved for the use of overtime to complete the
design to meet revised FAA grant application deadlines. Amendments 6, 7, 8, and 9 added scope
and addressed necessary design revisions during construction and provided  for additional
construction support. With the execution of amendment No. 9, the total contract value was
$3,260,903.  Due to construction contract completion delays, ongoing consultant support is
needed to complete the project.  The Port is seeking to execute amendment No. 10 for an
estimated value of $200,000. Amending the contract with Stantec Consulting will allow the Port
to support project completion and adequately document the many contract changes.  Staff is
negotiating the fee with Stantec and will finalize the amendment for execution should this
request be approved. 
As this amendment and prior amendments exceed 50% of the original value of the service
agreement, per the requirements of RCW 53.19.060, this memorandum will be made publicly
available at the Port's Bid Desk. 
Despite the design and contracting challenges, the project is beginning to operate at Concourse A 
and B and the South Satellite. 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.  Project
completion is now scheduled for the fourth quarter of 2013. 
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

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 28, 2013 
Page 3 of 6 
achieve the right temperature inside by running an auxiliary jet engine. To properly cond ition
the inside of that 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. While the airlines have approved funding for this project, a Federal Aviation
Administration (FAA) Voluntary Airport Low Emission (VALE) grant was obtained for this
project. 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 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 piping installation
is completed. Testing, startup and commissioning a system this large is challenging; however, 
that work is underway and airlines are beginning to use the system.
Although the contract direct costs and time extensions have been addressed via previously issued
change orders, there are indirect costs associated with the project time extension. These costs
include the design team and Port staff who support the project through close-out.  Additionally, 
the indirect costs related to the construction contract have not been fully addressed.  Since the
amount of the compensation due is currently disputed, staff will return to Commission when
those are resolved. 
Although the cost of the project has increased, the financial benefits remain attractive. The
following is based on today's jet-a 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 = $13,750,000 per year. 
$45M project cost minus $21.9M VALE: $23.1M Port cost. Payback period = 1.7 years 
$50M project cost minus $21.9M VALE: $28.1M Port cost. Payback period = 2.0 years

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 28, 2013 
Page 4 of 6 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary                    Capital        Expense    Total Project 
Original Budget                                $40,600,000              $0     $40,600,000 
Previous Authorizations                        $46,635,000        $590,000     $47,225,000 
Current request for authorization                    $600,000               $0        $600,000 
Total Authorizations, including this request      $47,235,000        $590,000     $47,825,000 
Remaining budget to be authorized                      $0              $0              $0 
Total Estimated Project Cost                    $47,235,000        $590,000     $47,825,000 
Project Cost Breakdown                               This Request           Total Project 
Construction                                                       $0            $35,823,242 
Construction Management                               $200,000            $3,116,244 
Design and Construction support                           $200,000            $3,759,000 
Project Management                                     $200,000            $1,486,449
Permitting                                                         $0               $236,856 
State & Local Taxes (estimated)                                   $0             $3,403,209 
Total                                                          $600,000            $47,825,000 
Budget Status and Source of Funds 
This project (CIP # 800238) was included in the 2013-2017 capital budget and plan of finance
with a budget of $ 45,535,000. The budget was increased by $1.1 million in January 2013. The
current budget increase of $600,000 will be transferred from CIP # C800404, Aeronautical
Allowance, resulting in no net change to the 2013-2017 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.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 28, 2013 
Page 5 of 6 
Financial Analysis 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        $25,925,000 (total cost excluding grants) 
Business Unit (BU)            Terminal Cost Center 
Effect on business             NOI after depreciation will decrease due to recognizing
performance                 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 costs 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 May 28, 2013, the Commission authorized a contract extension of 221 days, which
established a new project completion of August 26, 2013. 
On November 7, 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.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 28, 2013 
Page 6 of 6 
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.