PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      5b 
ACTION ITEM             Date of Meeting   October 23, 2012 
DATE:    October 15, 2012 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    David Soike, Director, Aviation Facilities and Capital Program 
James R. Schone, Director Aviation Business Development 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  Central Terminal Freight Elevator Project at Seattle-Tacoma International Airport
(CIP #C800334) 
Amount of This Request:  $7,684,000   Source of Funds: Airport Development Fund 
Est. State and Local Taxes: $ 526,000    Est. Jobs Created: 132 (Total Project) 
Est. Total Project Cost:    $8,318,000 
ACTION REQUESTED: 
Request Commission authorization to (1) increase the Central Terminal Freight Elevator project
budget from $6,664,000 to $8,318,000; (2) authorize the Chief Executive Officer to advertise 
and award a major construction contract for the Central Terminal Freight Elevator project at
Seattle-Tacoma International Airport; and (3) authorize Port Construction Services to perform
support work. The total project cost is $8,318,000. 
SYNOPSIS: 
The Central Terminal service elevators that currently support the post-security main terminal are
undersized for growing Airport needs, and limit both the efficiency of tenant operations and the
Port's ability to command the highest possible rents for tenant spaces in the future. The
undersized elevators cost the Airport and its tenants money and expose passengers and
employees to risk of injury. Addressing this problem by constructing two new freight elevators
now will improve operations for many tenants, avoid risk of longer-term loss of revenue, and
support the 1,500 concessions jobs within the Airport. This project will install two new freight
elevators, one to the north and one to the south of the public area of the Central Terminal
building. These new freight elevators will be constructed on the exterior of the Central Terminal
and will be connected to the structure to serve the basement, ramp, concourse, and mezzanine
levels. The primary benefit of this project will be realized by the concessionaires through
improved elevator reliability and efficiencies in transporting product; however, all Airport users
will benefit. This project was included in the 2012 capital budget and plan of finance. 
BACKGROUND: 
The Central Terminal Expansion (CTE) project, completed in 2005, added 240,000 square feet of
terminal space, featuring a six-story tall glass window atrium facing the airfield. Approximately
130,000 square feet of the space was allocated to new Airport concessions. Ten new restaurants

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 15, 2012 
Page 2 of 8 
and nine retail shops were added, including a 7,000 square foot sit-down restaurant (Anthony's).
However, the expansion project did not include freight elevators to support the existing terminal
(replacing freight elevator capacity removed in project demolition) or the new expansion. Freight
elevators are classed for incidental passenger use and frequent freight use up to 14,000 lbs.
Instead, the project installed two service elevators (classed for passenger use and incidental light
freight use up to 4,500 lbs.) flanking each side of the Central Terminal. This installation of
service elevators, rather than freight elevators, was a shortcoming within the CTE project design
that was not remedied prior to construction. The impact of this deficiency has become more
pronounced as usage has increased to serve both the Central Terminal and adjacent concourses. 
Virtually all Airport deliveries (including food and beverage, retail products, maintenance and
janitorial supplies, construction material, office and other supplies) arrive at the Central Load
Dock accessed via a service tunnel under the main terminal building. Concessionaire deliveries
are taken to the basement or mezzanine level for storage or directly to the concession unit on the
concourse level. Any product being moved to the concourse level must be transported from the
basement level via the two existing Central Terminal service elevators (See Exhibit A). 
These two 4,500-lb. light capacity service elevators are the primary bottleneck in the effort to
move product to the concession tenants throughout the terminal. Standard equipment for moving
vendor product is a powered pallet jack that can weigh up to 1,000 lbs. With palletized product,
the load is often too heavy for a service elevator and this requires the load be split into smaller
loads and transported by dolly to the desired location. In addition to the weight limitation, the
service elevators fall short of the needed width and depth to accommodate the standard pallet
jack equipment. Because of these tight conditions, delivery personnel have accidently hit the
elevators and elevator cab interior surfaces, resulting in damage that requires elevator downtime
to effect necessary repairs. 
When the service elevators are shut down for repairs, there are no secondary elevators available 
within a reasonable distance to compensate for the disruption. The existing freight elevator on
Concourse D is difficult to access due to heavy traffic and congestion from the baggage make-up
area and requires moving heavy pallets up and down steep ramps because of the elevation
change from the Central Terminal. Most freight deliveries arrive during the busiest time in the
baggage make-up area. Deliveries have to be broken down into much smaller units and handcarried
up the stairs to the concourse or mezzanine level. If a concession unit's normal back-ofhouse
access is not available due to an elevator outage on their side of the terminal, the delivery
must be carted across the public area to its destination. These practices consume an inordinate
amount of time and labor. For example, when the north Central Terminal elevator is out-of-
service, Anthony's Restaurant must bring their large deliveries of fresh fish on ice up via the
south elevator and transport them across the public area to the restaurant, where they must
unpack and hand-carry the fish up the stairs to the prep-kitchen located on the mezzanine level,
one flight above the concourse level. This practice is difficult for concessionaire employees and
is unsightly for the traveling public, while causing unnecessary congestion in the public space. 
The existing Central Terminal service elevators also are the only means to transport trash and
recyclables from Central Terminal, Concourse B, Concourse C, and Concourse D down to the
ramp level collection areas. This unsightly but necessary activity adds to the number of trips the
elevators must make, increases traffic congestion at the elevator lobbies, and thus adds wait time

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 15, 2012 
Page 3 of 8 
for the elevator users. Labor is a significant cost for concessionaires and the time waiting in an
elevator lobby for this transport process becomes a financial and operational burden. 
The estimated project cost has increased from $6,664,000 to $8,318,000. Much of the cost
increase is a result of a current estimate to construct the two new elevators, based upon the
complete detailed, 100% design documents rather than the conceptual estimate used to develop
the project notebook in December 2009, nearly three years ago. Specific cost increase elements
include the following items: 
Description           Project Notebook Estimate   Current Estimate       Cost Difference 
Foundation size increase  30 cubic yards (CY)       142 CY concrete       +$62,000 
concrete 
Basement construction,   400 CY excavation, 3,000   2000 CY excavation,   +$212,000 
add'l excavation &     SF of shoring            4000 SF shoring 
shoring 
Superstructure/framing   10,000 lbs. capacity        12,000 lbs.          +$25,000 
to accommodate
increased load capacity 
Cost of elevators        10,000 lbs. capacity, smaller  12,000 lbs. capacity    +$90,000 
doors                 and larger doors 
Pavement Replacement   Minimal areas delineated    Area increased by 1/3   +$12,000 
Design scope changes    Not included in notebook    PC Air piping        +$97,000 
relocation, larger
elevator doors, rewriting
Port standard
specifications 
PC Air piping relocation   Not included in notebook    Included in CTE      +$95,000 
Freight Elevators scope 
Contaminated soil       Not included in notebook    Anticipated an add'l    +$120,000 
1600 CY beneath AOA
pavement to be
excavated will be
contaminated. 
Construction         10%                 15%              +$284,000 
contingencies 
WA State Sales Tax     $464,000              $526,000           +$62,000 
Project Management and $294,000             $390,000           +$86,000 
Commissioning 
Environmental Support  $39,000              $73,000            +$34,000 
& Reviews, and Airport
Bldg Dept Permitting &
reviews 
Construction         $341,000              $713,000           +$372,000 
Management and other
soft costs 
Contract Administration   Previously included in      $103,000            +$103,000 
overhead percentage 
Net Increase                                                +$1,654,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 15, 2012 
Page 4 of 8 
PROJECT JUSTIFICATION: 
These two new freight elevators will allow the Port to provide reliable vertical transportation of
concessionaires' product from the loading dock storage area(s) to vendors on the concourse level
and the mezzanine levels of the Central Terminal food court, as well as other users for equipment
that typically can't use a passenger elevator (i.e., Maintenance, Transportation Security
Administration, etc.). 
The main recycling stations for Concourses B, C, and D and the Central Terminal are below the
Central Terminal and accessed via the existing service elevators. The increased
capacity/reliability provided by the two new freight elevators will allow the Port to achieve its
recycling/composting percentage goal and likely increase recycling/composting activity to 50%,
a key goal of the Port's environmental strategy. The new freight elevators will enhance and
support waste reduction by providing additional freight capacity for recycling. 
Project Objectives: 
Provide efficient method for delivery of goods to all Airport tenants and the Port. 
Provide the necessary infrastructure for concessionaires to receive, store, and redistribute
product in a safe and efficient manner. 
Offer the expected support facilities in order to retain and attract new concessionaires in
the Main Terminal. 
Provide enhanced capacity and flexibility in critical movement of concessionaires'
product from receiving to storage and finally to point of sale. 
Reduce instances of damage to existing service elevators due to freight use. 
Reduce impacts to the aesthetics of the Central Terminal exterior appearance. 
Provide effective circulation paths on all levels to and from the new freight elevators. 
Provide additional vertical movement of maintenance supplies and oversize parts and
equipment from basement shops. 
Provide critical system redundancy for vertical movement of concessionaire goods and
Port material. 
Reduce emergency repair costs to existing service elevators. 
Provide increased critical non-airline concessions revenue to support the maintenance and
development of the Airport for the benefit of employees and the public. 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
The project includes two new freight elevators, each with a rated capacity of 12,000 lbs. adjacent
to the Central Terminal, between Concourses B and C, in locations near the existing service
elevators. These new elevators are of a freight type, designed to accommodate large loads of
material, which may be transported on pallets. To minimize the overall height of the shafts, the
elevators are a traction style, with the machine room located at the base of the shaft, at the
basement level of the building. The elevators will serve the Basement, Ramp, Ticketing and
Mezzanine levels.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 15, 2012 
Page 5 of 8 
The scope includes all enclosure work for the new elevators including foundations, structure,
enclosures, exterior bridge connections, relocation of existing grease interceptors, existing
building renovation to accommodate connections, roofing and all associated mechanical and
electrical system work. 
The two upper floors will be connected to the existing building by a short bridge that penetrates
the existing faade. The elevator and bridge structure is designed to be fully independent of the
existing terminal, so that the new construction will impose no structural loads on the existing
building. 
Within the Central Terminal building, there will be temporary and permanent work to
accommodate the new elevators, including work by PCS to streamline secure access to the
elevator vestibules.
Each of the new elevator locations will require the relocation of existing large in-ground grease
interceptor vaults. These vaults serve to separate grease from the sanitary drainage of the
restaurants at the ticketing level of the Central Terminal. These vaults must remain in service
throughout the construction process. Work will include excavation, demolition, structural, fire
protection, lighting, ventilation, and electrical system construction. 
Schedule: 
The project schedule is as follows: 
Complete design                            September 2012 
Bid Advertisement                            October 2012 
Construction start                               February 2013 
Construction complete                          June 2014 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary:               Capital       Expense    Total Project 
Original Budget                         $6,664,000           $0     $6,664,000 
Budget Increase                         $1,654,000            0     $1,654,000 
Revised Budget                        $8,318,000           0     $8,318,000 
Previous Authorizations                     $634,000           $0       $634,000 
Current request for authorization               $7,684,000            $0      $7,684,000 
Total Authorizations, including this request        $8,318,000            $0      $8,318,000 
Remaining budget to be authorized                 $0           $0           $0 
Total Estimated Project Cost                $8,318,000           $0     $8,318,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 15, 2012 
Page 6 of 8 
Project Cost Breakdown:                   This Request       Total Project 
Construction                              $5,617,000         $5,617,000 
Construction Management and Contract            $816,000         $816,000 
Administration 
Design                                  $105,000         $593,000 
Project Management and other soft costs             $547,000         $693,000
Permitting                                  $73,000           $73,000 
State & Local Taxes (estimated)                  $526,000          $526,000 
Total                                    $7,684,000         $8,318,000 
Budget Status and Source of Funds: 
This project was included in the 2012-2016 capital budgets (CIP #C800334) with a budget of
$6,664,000. The budget increase of $1,654,000 has been transferred from CIP #C800152 Non
Aeronautical New Projects; thus there is no change to the 2012-2016 capital budget. The funding
source will be the Airport Development Fund. 
Financial Analysis and Summary: 
CIP Category             Renewal/Enhancement 
Project Type              Infrastructure Upgrade & Customer Service 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        $8,318,000 
Business Unit (BU)          Concessions (Non-aeronautical) 
Effect on business performance  Will reduce NOI after depreciation by $304,000 due to
added O&M costs and increased depreciation.
IRR/NPV             N/A 
CPE Impact             None 
Lifecycle Cost and Savings: 
From a financial analysis perspective, the Port will incur increased Operation and Maintenance
(O&M) expense related costs of about $26,400 per year for these new elevators. These O&M
costs are the expenses related to required staffing, tools and supplies, the requirement for
ongoing maintenance and periodic component renewal, and energy use. However, these are
normal O&M costs, which are expected to be offset to some degree by lower damage repair costs
to the current service elevators once the new larger freight elevators are put into service. 
The primary benefit of this project will be realized by the concessionaires through improved
elevator reliability and efficiencies in transporting product; however, all Airport users will
benefit. 
Based solely on financial metrics, it is challenging to compare the installation of new freight
elevators to premature replacement of the current service elevators. Premature replacement of the
current service elevators would not remedy the underlying issue of inadequate capacity for
current and future needs. A likely financial impact of continued reliance on service elevators for

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 15, 2012 
Page 7 of 8 
freight needs would be lower bids from concessionaires when the current leases expire in 2015. 
Given the known higher operating costs, due primarily to the lack of sufficient, efficient and
reliable freight elevator capacity, future bids for concession units would reflect these higher
operating costs. 
There is also the safety risk associated with concession employees having to carry product up the
stairs and across the public areas of the Airport when one or both of the service elevators are shut
down for repairs. This risk would only increase as the concessions business grows in the coming
years with corresponding enplanement growth, which increases the need for moving more
products from the Central Loading Dock to storage units and into retail units to meet the growing
needs of the traveling public. 
STRATEGIC OBJECTIVES: 
This project promotes the Port's Century Agenda preliminary goal to make Sea-Tac 
Airport the West Coast "Gateway of Choice" by providing a first-class customer service
experience and comfort to the traveling public with the quality concession offerings
expected in a large international airport. 
This project also promotes the Port's Century Agenda preliminary goal to "meet the
region's air transportation needs at Sea-Tac Airport for the next 25 years" by providing
necessary support to vendors to efficiently serve the traveling public. 
ENVIRONMENTAL SUSTAINABILITY: 
Efficient elevator systems in the Central Terminal will allow the Port to continue its aggressive
pursuit of increased recycling and composting by providing more reliable service to the Airport's
main collection areas for this material. The project design utilizes increased energy efficiency in
the selection of machinery to operate the elevators. 
The passenger airlines have greatly reduced their on-board meal offerings. As a result, travelers
have come to depend upon purchasing food prior to boarding aircraft. Also, as the Transportation
Security Administration has restricted the amounts of food and liquids that can be transported
through the checkpoints, travelers have come to depend upon the food concessionaires as their
primary source of on-board food and beverages. Providing adequate concession supplies for
travelers will depend to a large extent upon these elevators as passenger traffic grows in the
coming years. 
BUSINESS PLAN OBJECTIVES: 
This project supports a strategic objective to operate a world-class airport that can attract and
keep both domestic and international carriers to the Puget Sound region. 
This project also supports the strategic goal of maximizing non-aeronautical operating income. 
TRIPLE BOTTOM LINE SUMMARY: 
This project will provide tangible improvements to concession operations. The new freight
elevators will allow goods to be reliably delivered to the concession storage areas and to be
efficiently retrieved by the concessions tenants when needed. Reduced load dock vehicular "wait

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 15, 2012 
Page 8 of 8 
time" will result in increased load dock safety, and moderately decreased air emissions and
decreased fuel consumption. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
ALTERNATIVE 1: Do nothing. Not constructing two new CTE freight elevators, essentially
leaving the current inefficient situation as-is, will continue to negatively affect daily concession
operations, require continued and likely increased maintenance and repairs, and adversely affect
safety and the traveling public since deliveries will become less reliable. Complete replacement
of the existing service elevators will have to occur sooner as a result of the overuse of these
smaller capacity elevators. This action is not recommended.
ALTERNATIVE 2: Proceed with bid and award a major construction contract for two new CTE
freight elevators. This is the recommended action.
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Exhibit A  Central Terminal Elevator System 
Exhibit B  Main Terminal Post-Security Freight Elevator Capacity 
Exhibit C  Concessions Supply Route into Terminal 
PowerPoint Presentation 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
Commission approved funding of $634,000 for design at April 5, 2011, Commission
meeting.