PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4c 
ACTION ITEM 
Date of Meeting    February 10, 2015 
DATE:    February 3, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Dave Soike, Director, Aviation Facilities and Capital Program 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  Parking Garage Lighting (CIP #C800581) 
Amount of This Request:        $4,952,000      Source of    Airport Development
Funds:           Fund (ADF) 
Est. Total Project Cost:          $6,235,000 
Est. State and Local Taxes:        $340,000
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to (1) advertise, award, and
execute a major public works contract for the construction of the project; and (2) authorize the
purchase of LED retrofit kits to be installed by Port Maintenance in an amount not to exceed
$4,952,000. This request is in addition to the previous design authorization of $1,243,000 and
brings the total project authorization to $6,235,000. 
SYNOPSIS 
This project is an energy conservation project that will retrofit or replace all the lights on normal
power circuits on all eight floors of the Airport parking garage. In addition, this project will
install additional fixtures on the first floor and in the fourth floor plaza area to increase light
levels and provide a better customer experience. Use of LED lighting technology will reduce 
energy consumption by over 60 percent while maintaining or improving existing lighting levels.
This project was included in the 2015-2019 capital budget and plan of finance. 
BACKGROUND 
Lighting technology in the parking garage is over 15 years old. New LED technology enables
lighting levels to remain the same or improve while decreasing energy consumption. In 2013, an
initial garage energy conservation project was undertaken that reduced energy consumption  by
60 percent on the emergency lighting circuits by retrofitting fixtures with LED kits. This project 
will retrofit the remaining fixtures in the garage to realize the same energy savings for lights on
normal power circuits. 


Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 3, 2015 
Page 2 of 5 
PROJECT JUSTIFICATION AND DETAILS 
Project Objectives 
Install new lighting technology to reduce energy consumption in the parking garage by
over 60 percent while providing the same or better lighting levels. 
Scope of Work 
Perform full design for all eight floors; 
Upgrade lighting on the first floor and provide additional lights to the fourth floor plaza
to increase light levels and retrofit existing lights on fourth floor normal power circuits
through a major construction contract; and 
Retrofit existing lights on normal power circuits on all remaining floors and access
helices to be performed by Port Maintenance Electricians. 
Schedule 
Design                              2nd Quarter 2014  2nd Quarter 2015 
Commission Authorization for Construction        1st Quarter 2015 
Construction  Major Construction 1st and 4th floor   3rd Quarter 2015  3rd Quarter 2016 
Construction  Port Maintenance              2nd Quarter 2015 - 4th Quarter 2019 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                       $5,000,000         $0    $5,000,000 
Previous Budget Increase                 $1,235,000         $0    $1,235,000 
Revised Budget                      $6,235,000         $0    $6,235,000 
Previous Authorizations                 $1,283,000          $0    $1,283,000 
Current request for authorization            $4,952,000          $0    $4,952,000 
Total Authorizations, including this request     $6,235,000          $0    $6,235,000 
Remaining budget to be authorized                $0         $0          $0 
Total Estimated Project Cost              $6,235,000         $0    $6,235,000 
Project Cost Breakdown                     This Request       Total Project 
Construction                               $4,347,000         $ 4,347,000 
Construction Management                     $265,000         $ 265,000 
Design                                        $0         $ 979,000 
Project Management                              $0         $ 283,000 
Permitting                                       $0         $ 21,000 
State & Local Taxes (estimated)                   $340,000         $ 340,000 
Total                                      $4,952,000          $ 6,235,000

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 3, 2015 
Page 3 of 5 
Budget Status and Source of Funds 
This project was included in the 2015  2019 capital budget and plan of finance. The funding
source will be the Airport Development Fund 
Financial Analysis and Summary 
CIP Category             Renewal and Enhancement 
Project Type              Renewal and replacement and customer service 
Risk adjusted discount rate     7% 
Key risk factors             Low risk 
Project cost for analysis        $5,532,000 (cost excluding additional light fixtures) 
Business Unit (BU)          Landside 
Effect on business performance  When all floors are completed, it is anticipated that annual
energy savings will exceed annual depreciation resulting
in an increase in NOI. 
IRR/NPV             NPV = $1.1 million, Modified IRR = 11% 
CPE Impact             None 
The financial analysis is based on the scope and cost of retrofitting lighting fixtures to achieve
energy savings (excludes scope and cost for added light fixtures) and assumes a total of $750,000
in incentives and grants are received (see below). Energy savings have been calculated using the
Tier II rate from Bonneville Power Administration. At the margin, this is the rate that will be in
effect in future years if energy savings are not realized.
Lifecycle Cost and Savings 
This project qualifies for $250,000 in Bonneville Power Administration (BPA) conservation
incentives and has been awarded a $500,000 grant from Washington State Department of
Commerce (DOC). The DOC grant award is assured as long as the project has started
construction by June 2015. 
The yearly ongoing operations & maintenance (O&M) costs for the parking garage lighting will
decrease beginning in years 2016 2018 as the garage lighting is replaced (phased in) utilizing 
LED lights. Year 2019 should have only minimal (incidental) O&M costs related to garage
lighting. Annual O&M savings at project completion is estimated at $185,000. 
The estimated life of this product is eight to ten years. As such, beginning in 2023, the retrofit
kits will need to be replaced in kind or with new technology. 
STRATEGIES AND OBJECTIVES 
This project aligns with the Port's objective to be the greenest and most energy efficient port in
North America by meeting all increased energy needs through conservation and renewable
sources.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 3, 2015 
Page 4 of 5 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Maintain Status Quo and do not implement this project.  This option foregoes
the opportunity to realize a return on investment, reduce Sea-Tac Airport energy consumption, 
and make considerable progress towards the Airport's strategic objective to meet all increased
energy needs through conservation. Based on a cost/benefit analysis, the initial cost of alternative
1 is zero with an NPV of negative $2.2 million, and there is no payback, as reference below. This
is not the recommended alternative. 
Alternative 2)  Implement this project by replacing all existing metal halide light fixtures with
new LED light fixtures. Although the energy savings would be comparable to that of Alternative
3, the initial installation costs would be at least 30% more due to higher fixture cost and
increased construction time.  In addition, the 5,000 existing metal halide fixtures would be
disposed of in the local landfill rather than reused utilizing the latest LED retrofit technology.
Based on a cost/benefit analysis, the initial cost of alternative 2 is $8.1 million, with an NPV of
negative $300k, and a payback period of $7.8 years, as referenced below.  This is not the
recommended alternative. 
Alternative 3)  Implementing this project with LED fixtures and LED retrofit kits will provide
the greatest return on investment, reduce energy consumption and further the Port's Century
Agenda goals. This alternative will recycle and reuse over 5,000 outdated metal halide light
fixtures eliminating a substantial waste stream from entering local landfills. This approach
provides the best return on investment while minimizing landfill waste. Based on a cost/benefit
analysis, the initial cost of alternative 3 is $6.2 million, with an NPV of positive $1.1 million,
and a payback period of 5.6 years, as referenced below. This is the recommended alternative. 
gy
Savings
Investment New Added   Grant    (Today's  Annual         Payback
Alternatives  Capital     Lights    Funding    Rates)   O&M  NPV  IRR  (Yrs)
#1      $0      N.A.     $0      $0     $200k (2.2M) N.A.  N.A.
#2     $8.1M     $700k    $750k    $670k    $15k (300k) 6%   7.8
#3     $6.2M     $700k    $750k    $670k    $15k  1.1M 11%  5.6
TRIPLE BOTTOM LINE 
Economic Development 
The project supports economic development by investing in an upgraded parking garage to serve
the public need at the Airport. 
Environmental Responsibility 
This project will apply environmental sustainability principles primarily through the use of
energy-efficient light fixtures. These will reduce the energy use by an estimated 60 percent
while providing more than four times the lamp operating life compared to what is currently
installed.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 3, 2015 
Page 5 of 5 

Community Benefits 
This project aligns with the Port's Century Agenda objective to minimize the Airport's
environmental impacts and reduce energy demand through conservation while operating a worldclass
international airport by ensuring safe, secure, and sustainable operations. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
June 24, 2014  the Port Commission authorized preparation of design and construction
bid documents for the Parking Garage Lighting project at Seattle-Tacoma International 
Airport. That authorization was for $1,243,000 of a total estimated project cost of
$6,235,700.