PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4c 
ACTION ITEM 
Date of Meeting    December 8, 2015 
DATE:    December 2, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Dave Soike, Director, Aviation Facilities and Capital Program 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  South Utility Tunnel Steam Piping Upgrade (CIP #C800708) 
Amount of This Request:         $990,000   Source of Funds:  Airport Development
Fund (ADF) 
Est. Total Project Cost:          $1,000,000 
Est. State and Local Taxes:     $65,000 (Est.) 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to design, advertise, and
execute a major works construction contract for the South Utility Tunnel Steam Piping Upgrade
project at Seattle-Tacoma International Airport in the amount of $1,000,000. 
SYNOPSIS 
This authorization would allow for design and construction of upgrades to the aging steam heat
and hot water delivery system to the Airport's South Satellite. Design and construction are being
requested simultaneously to expedite completion of the project during the summer months, when
there is no need to heat the South Satellite. Performing work in the summer will enable the
upgrades to be completed for winter when the heating is necessary.
BACKGROUND 
The steam pipes that provide heat and hot water to the South Satellite run from the boiler room
through a utility tunnel to the South Satellite. As the temperature of these pipes fluctuates
through normal operations, the pipe lengths expand and contract. The expansion joints in these
pipes allow the pipe to lengthen and shorten without being damaged. These expansion joints
have exceeded their life expectancy by 15 to 20 years. Many now are showing signs of failure
(leaking steam at joints) that could result in months long heat and hot water outages to the South 
Satellite. Authority for design and contract execution is being requested in one action in order to
complete the project during the summer months, when it is not necessary to heat the South 
Satellite.


Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 2, 2015 
Page 2 of 6 
The existing steam piping expansion joints were installed 45 years ago and have exceeded the
manufacturer's recommended useful life. The expansion joint conditions were assessed during
several site visits and meetings by Aviation Facilities and Infrastructure and Maintenance
groups, who determined that the expansion joints leak and should be replaced rapidlyy to prevent
possible consequences caused by a major connection failure.  Port Maintenance Crews have
tightened the flange bolts in an attempt to fix the leaks. Further tightening of the flange bolts is 
not recommended due to the possibility of causing the flange gasket to fully collapse and disrupt
steam service to the South Satellite for an extended period of time. 
On March 18, 2014, Commission approved funding of $1,250,000 for a similar project to
upgrade the North Satellite steam piping and it was completed in October 2014, within approved
budget.
PROJECT JUSTIFICATION AND DETAILS 
Authorization of this request will allow existing expansion joints to be replaced prior to a
connection failure. A connection failure could result in the following: 
Expansion joint failure could cause damage to the steam line, causing the South Satellite
to be without heat or hot water for concessions and restrooms for several months. 
Expansion joint failure is also a safety concern. If one were to suddenly fail, any
personnel located in the vicinity would be exposed to live high pressure steam that is
operating at 100 pounds per square inch pressure and has a temperature over 300 degrees 
Fahrenheit.
Existing steam leaks are causing energy losses that are estimated to be around $10,000
annually for a single steam leak through 1/8" orifice at 100 pounds per square inch
operating pressure, which adds up to tens of thousands of dollars annually for multiple
leaks present at the South Satellite tunnel. 
Project Objectives 
Replace existing expansion joints in steam and condensate lines in South Utility Tunnel. 
Complete project on schedule. 
Complete project within budget. 
Reduce risk of piping failure that could cause extended utility outages to South Satellite. 
Reduce safety risk to personnel working in South Utility Tunnel. 
Develop detailed plans for current pipe conditions in tunnel to be used on this project as
well as future projects. 
Perform construction prior to winter months to remove cost impact of temporary heating. 
Minimize disruption to South Satellite tenants and operations by installing a temporary
boiler to provide hot water to restrooms and concessions during construction.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 2, 2015 
Page 3 of 6 
Scope of Work 
Design for this scope of work will be procured under an existing design services
indefinite delivery, indefinite quantity (IDIQ) contract. 
Survey and documentation of steam line to confirm locations of existing steam and
condensate lines, supports, anchors, slides, guides, steam traps, ball joints, and
appurtenances. Create updated tunnel plans and piping diagrams depicting this updated
condition. 
Perform piping thermal analysis to allow for proper design of expansion joints. 
Engineer evaluation of existing pipe support, anchors, slides, guides, and support bracing.
Replace as necessary. 
Replace existing expansion joints on existing steam and condensate lines in five locations
in the South Utility Tunnel. 
Perform necessary abatement of existing gaskets and pipe insulation containing asbestos. 
Install temporary natural gas boiler to provide hot water to South Satellite during
construction operations. 
Schedule 
The project schedule is as follows: 
Project Notebook Approval                                 4th Quarter 2015 
Commission Authorization for Design and Construction                4th Quarter 2015 
Design Start (Under Existing IDIQ)                             1st Quarter 2016 
Advertise, Execute                                        2nd Quarter 2016 
Construction                                       3rd and 4th Quarter 2016 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                      $1,000,000          $0    $1,000,000 
Previous Authorizations                   $10,000          $0      $10,000 
Current request for authorization              $990,000       $0,000     $,990,000 
Total Authorizations, including this request     $1,000,000       $0,000    $1,000,000 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost              $1,000,000          $0    $1,000,000 
Project Cost Breakdown                     This Request       Total Project 
Design Phase                              $200,000         $200,000 
Construction Phase                           $735,000         $735,000
State and Local Sales Tax Total (Est)                  $65,000           $65,000

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 2, 2015 
Page 4 of 6 
Budget Status and Source of Funds 
This project was not included in the 2016-2020 capital budget and plan of finance. The budget
transfer of $1,000,000 will be made from the Aeronautical Allowance CIP (C800404) which will
result in no net change to the Airport capital budget. The funding source will be the Airport
Development Fund. 
Financial Analysis and Summary 
CIP Category             Renewal/Enhancement 
Project Type              Renewal & Replacement 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        $1,000,000 
Business Unit (BU)          Terminal Building 
Effect on business performance  NOI after depreciation will increase 
IRR/NPV             N/A 
CPE Impact             Less than $.01 in 2017 
Lifecycle Cost and Savings 
This project will eliminate the several existing steam leaks that are causing energy losses 
estimated to at least $10,000 annually. (A single steam leak through 1/8" orifice at 100 pounds
per square inch operating pressure will waste $10,000 annually. There are  multiple leaks of
unknown size present in the South Satellite tunnel.) 
STRATEGIES AND OBJECTIVES 
This project supports the Port's Century Agenda objective of meeting the region's air
transportation needs at Sea-Tac Airport for the next 25 years. Maintaining our existing assets
and infrastructure is necessary to meeting this objective. 
TRIPLE BOTTOM LINE 
Economic Development 
This project will allow the Port to continue providing our airline and concessions tenants with
uninterrupted heat and hot water to the South Satellite. Completion of this project will prevent
an inevitable heat/hot water outage, and also prevent the economic impacts of an emergency
repair project and the potential costs to tenants at the South Satellite. 
Environmental Responsibility 
This project will eliminate the existing steam leaks that are causing energy losses.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 2, 2015 
Page 5 of 6 
Community Benefits 
The project manager and Central Procurement Office will coordinate with the Office of Social
Responsibility to determine opportunities for small business participation in support of
Resolution No. 3618. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Delay the project by trying to maintain existing expansion joints. 
Cost Estimate: $0 
Pros:
Low short-term cost. 
Cons: 
Failure would expose personnel to live high pressure steam that is operating at 100
pounds per square inch pressure and has a temperature over 300 degrees Fahrenheit.
As all of the joints are 45 years old and well past the expected life of 15-20 years,
experience has shown that repair is not feasible. Given the age and condition of the
joints, failure could occur each time any of the joints are cycled through the steam piping
shutdown and startup. 
This will result in more steam and condensate leaks that will eventually lead to failure.
Failure of the line will result in long outages of heat and hot water to restrooms and
concessions in the South Satellite. 
This is not the recommended alternative. 
Alternative 2)  Attempt to replace only the most vulnerable of the 32 expansion joints using
small works funds. 
Cost Estimate: $250K-$1.5M 
Pros: 
Lower short-term costs. 
Cons: 
Failure would expose personnel to live high pressure steam that is operating at 100
pounds per square inch pressure and has a temperature over 300 degrees Fahrenheit.
This alternative assumes that we can predict which joints are more likely to fail and
requires shutdowns to the line during each replacement without the temporary boiler to
provide hot water to the South Satellite during the outage. 
As all of the joints are 45 years old and well past the expected life of 15-20 years, there is
considerable risk if only some are replaced. Given the age and condition of the joints,
failure could occur each time any of the joints are cycled through the steam piping
shutdown and startup. 
This alternative has the highest uncertainty for cost, schedule and emergency shutdowns. 
Potentially higher costs due to more shutdowns and additional contractor mobilizations. 
This is not the recommended alternative.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 2, 2015 
Page 6 of 6 
Alternative 3)  Replace the expansion joints in both the steam pipe and condensate lines. 
Cost Estimate: $1,000,000 
Pros: 
This option allows the upgrade at one time. Temporary water heater can be provided
during this work to minimize impact on the heating water and domestic water systems.
This alternativeis the most economical over the life of the system because it requires 
only one mobilization to fix the issue for 20+ years. 
Cons: 
Highest initial costs. 
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
March 18, 2014, Commission approved funding of $1,250,000 for a similar project (CIP
#800659) to upgrade the North Satellite steam piping. The project was completed in
October 2014, within approved budget.