COMMISSION 
AGENDA MEMORANDUM                Item No.       4i 
ACTION ITEM                   Date of Meeting    November 8, 2016 
DATE:    October 31, 2016 
TO:     Ted Fick, Chief Executive Officer 
FROM:   Wayne Grotheer, Director, Aviation Project Management Group 
Michael Ehl, Director, Aviation Operations 
SUBJECT:  Concourse B Ramp Holdroom (CIP #C800761) 
Amount of this request:           $700,000 
Total estimated project cost:       $5,558,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to (1) award and execute a
major public works construction contract with the low responsive and responsible bidder for
the Concourse B Ramp Level Holdroom project, notwithstanding the low bid exceeding the
engineers estimate by more than 10 percent and (2) increase the project budget by $700,000. 
The new authorized total project cost will be $5,558,000. 
EXECUTIVE SUMMARY 
This project will convert approximately 3,400 square feet of ramp level office and service spaces
into passenger holdroom space needed for off-gate/hardstand operations. 
This project was authorized for construction in July 2016. Construction bids were opened on
October 25, 2016. Four bids were received. The lowest responsible bid exceeded the engineer's
estimate by 21% (bid: $2,789,000, estimate: $2,307,000). The two lowest bids were separated
by $3,000. While the remaining two bids were higher (at approximately 40%), the closeness of
the bids leads us to conclude that they represent a competitive marketplace that was not
accurately portrayed in the project cost estimate. Port staff will be reviewing other project
estimates prior to bidding in order to ensure that market conditions are accurately reflected in
the project estimated cost. 
This request to increase the project budget is for two reasons. First,  the bid overage of
$570,000 represents the difference between the engineer's estimate and the lowest bid, plus
additional sales tax and construction contingency amounts. Second, the additional $130,000 is
for changed site conditions discovered during construction of authorized enabling work by Port
crews and small works contractors to relocate tenants currently located in the project site. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 4i                        Page 2 of 5 
Meeting Date: November 8, 2016 
JUSTIFICATION 
The Aviation Division Business Plan calls for "increased productivity of existing terminal
facilities" (Strategy 1.2, Objective 6). The need for increased productivity is driven by the
following: (1) recent and forecasted significant growth in enplanements and operations and (2)
construction activities that will take several existing gates out of service during the
International Arrivals Facility and North Satellite renovation and expansion projects. The Airport
will face a severe shortage of contact gates for at least the next decade. 
Sea-Tac Airport has the highest gate utilization rate of any large hub airport in the country. The
current Signatory Lease and Operating Agreement (SLOA) outline specific protocols for gate
utilization. These protocols include secondary user rights on leased gates, defined periods of
use on all gates, and a specific hierarchy for assignment of carriers to common-use gates. At
this time there is very little or no opportunity to further leverage existing protocols to increase
gate utilization. Since every gate will be in use and every holdroom will be occupied, when
hardstand operations are activated the Airport needs to provide a waiting area and equipment
to process passengers for these flights.
The Concourse B location offers convenient access to the ramp for busing and also convenient
access to the Satellite Transit System for passengers who need to access other areas of the
Airport. 
Project Objectives 
Provide a dedicated common-use holdroom and passenger processing space for use
during hardstand operations. 
Provide additional capacity within the existing building footprint as directed in the
Airport's business plan strategic goal to increase productivity of existing air terminal
facilities. 
DETAILS 
Scope of Work 
This project will convert approximately 3,400 square feet of ramp level office and service spaces
into passenger holdroom space needed for off-gate/hardstand operations. The holdroom will
be designed to have a capacity for more than 200 people to be able to process two flights with
staggered departure times.
This project will install common-use casework and passenger processing equipment as well as
passenger amenities including new restrooms, seating, and Wi-Fi. Electrical, mechanical, fire
sprinkler, and communication systems will be reconfigured to meet the needs of the space. This
includes heating, ventilating, air conditioning (HVAC), and plumbing systems. Access from the
concourse level of the terminal building will be provided with a passageway from the existing
escalator landing into the space. Exterior doors will also be installed with appropriate access
control security. Outside the building, the project will delineate a bus lane and a bus drop-

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

COMMISSION AGENDA  Action Item No. 4i                        Page 3 of 5 
Meeting Date: November 8, 2016 
off/pickup area and provide a covered passenger walkway to the holdroom door. Through
design it was determined to provide the covered passenger walkway. This would provide
additional passenger protection from the weather and improved passenger experience. This
resulted in a scope and budget increase. 
While most of the identified ramp level terminal building space is currently vacant, this project
will relocate three airline ramp level office and service spaces to another area of the ramp level
as the first element of this project. This early construction work was authorized by the
Commission on October 6, 2015. 
Schedule 
Activity 
Construction start                    2017 Quarter 1 
In-use date                        2017 Quarter 3 
Cost Breakdown                         This Request        Total Project 
Design                                       $0           $986,000 
Construction                               $700,000         $4,572,000 
Total                                       $700,000          $5,558,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Reject all bids; reduce scope in order to stay within the project budget (scope
elements to be removed have not been identified at this time). 
Cost Implications: No change in budget - $4,858,000. 
Pros: 
(1)   No added costs or budget increase 
Cons: 
(1)   This alternative would cause passengers to walk 200 feet, exposed to the weather
elements to and from the COBUS. 
(2)   Additional staff and designer expense for the redesign. 
This is not the recommended alternative. 
Alternative 2  Accept the low bid and complete the project. 
Cost Implications: Budget - $5,858,000, increased by $700,000 
Pros: 
(1)   This alternative will allow the Port to award the contract to the low bidder and to keep
the project close to its current schedule. 
(2)   No additional costs or delays for design and rebid. 

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

COMMISSION AGENDA  Action Item No. 4i                        Page 4 of 5 
Meeting Date: November 8, 2016 
Cons: 
(1)   This alternative costs more by an additional $700,000. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary         Capital      Expense        Total 
COST ESTIMATE 
Original estimate                      $4,176,000      $10,000    $4,186,000 
Previous changes  net                  $4,848,000      $10,000    $4,858,000 
Current change                       $700,000          $0     $700,000 
Revised estimate                      5,548,000      $10,000    $5,558,000 
AUTHORIZATION 
Previous authorizations                  $4,848,000      $10,000    $4,858,000 
Current request for authorization             $700,000          $0     $700,000 
Total authorizations, including this request     $5,548,000       $10,000    $5,558,000 
Remaining amount to be authorized             $0         $0         $0 
Annual Budget Status and Source of Funds 
This project (CIP #C800761) was included in the 2016-2020 capital budget and plan of finance. A
budget transfer of $700,000 will be transferred from the Aeronautical Allowance CIP (C800404)
resulting in no net change to the Airport's capital budget. The funding source for this project
will include the Airport Development Fund and future revenue bonds. 
Financial Analysis and Summary 
Project cost for analysis         $5,558,000 
Business Unit (BU)            Terminal Building 
Effect on business performance  NOI after depreciation will increase 
(NOI after depreciation) 
IRR/NPV (if relevant)           N/A 
CPE Impact                $0.02 
ATTACHMENTS TO THIS REQUEST 
Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
July 5, 2016  The Commission authorized construction of the project and an increase to the
budget of $672,000. 
October 6, 2015  The Commission authorized design of the project and use of Port crews
to construct and relocate ramp and service space. 

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

COMMISSION AGENDA  Action Item No. 4i                        Page 5 of 5 
Meeting Date: November 8, 2016 
May 26, 2015  The Commission was briefed on the Aviation Division Business Plan which
included a review of remote hardstand operational needs. 
April 28, 2015  The Commission was briefed on the Sustainable Airport Master Plan (SAMP) 
which included a review of the need for remote hardstand operations. 

















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