PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      6b 
ACTION ITEM           Date of Meeting   October 2, 2012 

DATE:    September 24, 2012 
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: $2,000,000    Source of Funds:  Airport Development Fund, 
FAA-AIP VALE Grants and 
Existing Revenue Bonds 
Est. State and Local Taxes: $2,980,000   Est. Construction Jobs Generated: 120 
Total Project Cost: $46,125,000 
ACTION REQUESTED:
Request Commission authorization to increase the project budget for the Centralized Pre-
Conditioned Air Project at Seattle-Tacoma International Airport by $2,000,000 to include 
$1,250,000 for additional construction contingency; $250,000 for additional design team
support; and $500,000 for additional support by Port Maintenance and Port Construction
Services. In accordance with RCW 53.19.060, this memorandum constitutes notification to the
Commission that the amended amount of this contract exceeds 50 percent of the original not-toexceed
contract value. 
SYNOPSIS:
The Pre-Conditioned Air (PC-Air) project will allow flight crews to turn off aircraft auxiliary
power units (APUs) and plug in to the Airport infrastructure to receive both heated and cooled
air. 
The PC-Air project is one of the most complex and invasive utility projects that the Airport has
undertaken. It reaches through occupied areas to each of 73 gates (installing 10 miles of piping). 
The nature of this project has added complexity because detailed design cannot occur in certain
occupied wall interior and ceiling areas until specialty subcontractors have investigated those
areas and prepared detailed shop fabrication and installation drawings. As a result, change orders
have increased the contract construction cost from the bid of $27,013,400 to $31,366,201. As of
the end of August, the Port has issued $4,352,801 in change orders to this contract. These costs
were funded from the existing project construction contingency budget. $1,250,000 of this
request is needed to replenish the construction contingency to address the existing open

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 24, 2012 
Page 2 of 8 
contractor cost trends. Additional funding may be requested if needed once staff has resolved the
$3,000,000 in disputed contractor claims. 
The additional construction costs also drive additional necessary consulting and Port costs.
Additional Port Construction Services (PCS) and Port Maintenance crew costs are estimated to
be $500,000. PCS and Maintenance departments support the project by removing and reinstalling
concourse wall and soffit panels for equipment and piping installation, supporting utility
shutdowns for necessary connections to existing systems and confirming proper operation of jet
bridges after PC-Air equipment installations are complete. 
The $250,000 amendment to the existing Service Agreement with Stantec Engineers Inc. will
provide the additional design service. As this amendment will exceed 50% of the original value
of the Service Agreement, per the requirements of RCW 53.19.060, a memorandum is on file at
the Port's Bid Desk indicating the Port's intention to amend Professional Services Agreement P-
00316148 via Amendment No. 9. 
There are significant environmental and cost benefits associated with this project since the total
amount of energy used to heat and cool aircraft will decrease. CO2 emissions and other emissions
could be reduced by more than 69,000 metric tons per year, which represents 2% of emissions
from aircraft at the Airport, and is roughly equivalent to taking 13,500 cars off the road.
Lifecycle costs, fuel consumption, and ramp noise will also be reduced, which benefits both the
Airport and airlines.
The new total project cost is $46,125,000. Of this, $21.2 million will continue to be funded by a
Federal Aviation Administration (FAA) Voluntary Airport Low Emission (VALE) Grant. The
budget increase will be funded by reprogramming existing bond proceeds to this project.
BACKGROUND:
The PC-Air project will provide heated and cooled air to aircraft at 73 Airport boarding gates.
The system to provide this service includes: 
A new centralized PC-Air plant with four new chillers, 32 ice tanks, and other equipment 
Several pipe connections to existing centralized plant equipment 
Approximately 10 miles of distribution pipe for chilled and heating water 
73 PC-Air units, one at each gate, to transfer the heat or cooling from the fluid in the
piping to the air flowing into the aircraft 
Retrofitting this quantity of equipment and piping in an already congested facility creates a
number of challenges: 
Constructing these improvements in many areas of the Airport, including the central
plant, Central Terminal basement, ramp and roof levels of Satellites and concourses, and
north and south utility tunnels 
Obtaining access to the spaces to move material and resources into the construction areas 
Avoiding or relocating utilities and equipment throughout the Airport to facilitate the PC-
Air piping. Existing utilities and equipment include electrical boxes, conduit and panels,
ventilation ducts and fans, fire alarm systems, lights, etc.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 24, 2012 
Page 3 of 8 
Connecting to existing building structures to provide structural support for equipment and
piping 
The contract documents address the majority of these issues; however, some were not identified
until the means of access for installation was discussed with the contractor and the contractor
submitted detailed shop and installation drawings. 
Construction Contingency 
1.  Construction contract contingency                                $4,849,940 
2.  Current cost of executed change orders as of the end of August is        $4,352,801 
3.  Construction contingency balance (line 1 minus line 2)                $ 497,139 
4.  The estimated cost of change orders under negotiation                $1,147,199 
Current request: 
5.  Additional funding needed for existing change order entitlement(line 3 minus line 4) 
$650,060 
6.  Additional funding requested for construction contingency              $600,000 
Total contingency funding request                           $1,250,000* 
*rounded down to nearest $1000. 
Staff may return to Commission at a later date for specific construction contract change order
authorizations and potentially additional budget authorizations when required by Resolution
No. 3605, as amended. 
Additionally, there are contract disputes of approximately $3,000,000. These are issues where
the Port has found no entitlement and will be resolved through the Port's dispute resolution
process. Staff may return to Commission at a later date concerning resolution of these items. 
Summary of executed Change Orders: 
Access challengesapproximately $964,201  The majority of this increase is for access
to the North and South Satellite utility tunnels and routing piping from the Central Plant
in the Central Terminal basement to roof of Concourse C and D. 
Field conditions; i.e., piping conflicts and interferences--approximately $2,995,000 - 
During the preparation of detailed drawings, the contractor identified additional
interferences and conflicts with existing utilities and equipment. 
Building and Electrical Code required revisionsapproximately $92,600 - To qualify the
project for the VALE FAA Grant, the project was bid before the building permit was
approved. The permit review generated some changes to comply with the Building and
Electrical Codes. 
Contract Scope changes approximately $301,000  There have been changes to Airport
facilities and to Port technical requirements since contract documents were completed
and the contract was awarded. 
Port Construction Services and Maintenance Support 
Port Construction Services (PCS) is supporting this project by relocating tenants and removing
and reinstalling covers and panels for piping installation. The original project estimate for this

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 24, 2012 
Page 4 of 8 
work was $331,000. In September 2011, with the known additional work, the estimated cost
increased to $750,000. Since then, additional work at the tenant storage area and Concourses C
and D to provide access for pipe support and piping installation has increased the estimated cost
to $1,050,000. To support installation of concourse piping, this additional work is required. 
Maintenance crew support is needed to complete this project work. Maintenance is providing
unanticipated support: 
At each of the 73 gates to install equipment on the jet bridges and confirm that the
bridges are operational when the contractor completes work each day. 
For numerous utility shutdowns and connection of electrical and mechanical systems. 
The original estimate of support was $100,000. The estimated cost of this support through the
completion of the project is $350,000, an increase of $250,000. 
Additional Design Services 
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 eight amendments have
been executed. Amendments Nos. 1, 2, 3, and 5 were for clarification of positions and
adjustment of rates. Amendment No. 4 approved the use of overtime to complete the design to
meet revised FAA grant application deadlines. Amendments 6, 7, and 8 added scope and 
addressed necessary design revisions during construction and provide for additional construction
support. With the execution of amendment no. 8, the total contract value was $3,013,069. 
Due to construction changes, the Port is seeking to execute amendment no. 9 for an estimated
value of $250,000. Amending the contract with Stantec Consulting will allow the Port to support
expeditious project completion. 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. 
PROJECT JUSTIFICATION: 
The PC-Air project will lower costs to the airlines while producing significant environmental
benefits by reducing tens of thousands of tons of carbon dioxide (CO2) emissions each year. It
will also reduce noise on the ramp caused by the aircraft's APU. This project is a cost-effective
way to aid the airlines while improving the quality of the environment. The airlines have
approved funding for this project, most of which will now be covered by the FAA VALE grant.
Completing the work expeditiously is necessary per grant assurances. 
Continuing the work under the current major works project supported by Stantec Engineers, Inc., 
the Engineer of Record, Port PCS and Maintenance is the most efficient means to complete this
project in a timely and cost efficient manner.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 24, 2012 
Page 5 of 8 
PROJECT STATEMENT AND OBJECTIVES: 
Project Statement: 
Construct the PC-Air system with an associated central plant including individual PC-Air gate
units at all passenger loading bridges. 
Project Objectives: 
Provide a PC-Air System that will accomplish the following: 
Decrease the amount of energy used to heat and cool the aircraft 
Significantly reduce the amount of CO2 and other air emissions produced 
Provide aircraft with cabin heating and cooling while eliminating the need for using the
APU, which consumes jet fuel 
Minimize lifecycle costs 
Minimize fuel consumption 
Minimize ramp noise 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
Construct the PC-Air system with an associated central plant including individual PC-Air
gate units at all passenger loading bridges. 
Scope of this Request 
Additional contingency construction budget to support the installation of PC-Air to all
airport gates 
Additional design services to support construction phase activities 
Additional budget to continue support of PCS and Maintenance 
Schedule: 
The following is a list of key milestone dates for the Centralized Pre-Conditioned Air Project: 
Start preliminary design                       February 2009 
Complete design                            April 2010 
Seek approval from Commission to advertise           May 2010 
Award contract                          September 2010 
Construction Notice to Proceed                November 2010 
Contract Project Completion                   January 2013 
A time extension will likely be requested once staff has completed review and resolution of
construction issues that affected the critical path schedule.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 24, 2012 
Page 6 of 8 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary:            Capital      Expense    Total Project
Original Budget                        $40,600,000         $0   $ 40,600,000 
Previous Budget Increase                  $ 2,935,000     $590,000   $ 3,525,000 
Current Budget Increase                   $2,000,000         $0    $2,000,000 
Revised Budget                       $45,535,000     $590,000   $ 46,125,000 
Previous Authorizations                   $43,535,000     $590,000   $ 44,125,000 
Current request for Authorization             $ 2,000,000          $0   $ 2,000,000 
Total Authorizations, including this request      $45,535,000     $590,000   $ 46,125,000 
Remaining Budget to be Authorized                 $0         $0         $ 0 
Project Cost Breakdown:                   This Request         Total Project 
Construction Costs                             $1,598,173       $34,689,173 
Sales Tax                                    $151,827        $3,217,827 
Outside Professional Services                        $250,000        $3,559,000 
Project Management & other Soft Costs                     $0        $4,069,000 
Environmental Remediation Liability                                 $590,000 
Total                                        $2,000,000        $46,125,000 
Budget Status and Source of Funds 
This project (CIP # 800238) is included in the 2012-2016 capital budget and plan of finance with
a budget of $43.5 million. The budget increase of $2,000,000 will be transferred from CIP
C102166, Aeronautical Renewal & Replacement Allowance, thus there is no change to the 2012-
2016 capital budget. The funding plan is predicated upon the Port receiving $21.2 million in
VALE program grants, with the remaining costs funded with Airport Development Fund, and
2010 revenue bonds. 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 
September 24, 2012 
Page 7 of 8 
Financial Analysis and Summary:
CIP Category             New/Enhancement 
Project Type               Infrastructure 
Risk adjusted Discount rate     10% 
Key risk factors              Realizations of savings due to lower jet fuel usage 
Project cost for analysis         $ 24,912,679 (Excludes VALE grant funded portion) 
Business Unit (BU)           Terminal cost Center 
Effect on business performance   NOI after depreciation will decrease due to recognizing
depreciation on the full cost yet recovering capital costs
for the non-VALE funded portion only. 
IRR/NPV              NPV range of net savings to airlines: $5 million to $30
million. (calculated in 2010) 
CPE Impact             CPE will increase by $.16 in 2013; however, this cost will
more than offset by decreased airline operating costs. This
project was included in the business plan forecast. 
ECONOMIC IMPACTS AND BUSINESS PLAN OBJECTIVES: 
The positive net present value (NPV) for this project is based on viewing the Airport and airlines
together, as the Port will incur capital and operating costs, while the airlines will realize the cost
savings. The extent of the savings is dependent on: 1) the price of jet fuel 2) the number of days
per year the system is actually used, and 3) the number of carriers that use the system rather than
their own Point Of Use (POU) system. The Airport will incur increased operations and
maintenance costs of about $800,000 per year. In addition, the Port will incur annual debt service
costs of about $1.2 million per year. The financial analysis assumes $2 per gallon for the price of
jet fuel (prices have ranged from ~$1.50 to ~$3.50), PCA System use during summer only (17
weeks) and it assumes Alaska Airlines and Southwest Airlines continue to use their POU
systems. These conservative assumptions generate a positive NPV of $5 million and generate net
savings to the airlines from the first year of operations. The savings increase each year, making
this a financially sound project. 
STRATEGIC OBJECTIVES: 
This project will support the Century Agenda goal to be the greenest and most energy efficient
port in North America by reducing air pollutants and carbon emissions. It will provide a costeffective
and efficient heating and cooling system for aircraft parked at the gates. It will have a
positive effect on the airlines' operating costs by reducing fuel consumption through reduced
APU operation. 
ENVIRONMENTAL SUSTAINABILITY AND COMMUNITY BENEFITS: 
There are significant air quality improvements achieved by installing a centralized PC-Air 
system. CO2 emissions and other emissions could be reduced by more than 69,000 metric tons
per year, which represents 2% of emissions from aircraft at the Airport, and is roughly equivalent
to taking 13,500 cars off the road. Airport noise will also be reduced.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 24, 2012 
Page 8 of 8 
BUSINESS PLAN OBJECTIVES: 
This project support the Airport's business plan goal of leading the U.S. airport industry in
environmental innovation and minimizing the Airport's environmental impacts. 
TRIPLE BOTTOM LINE: 
This project will provide a cost effective and efficient heating and cooling system for aircraft
parked at the gates. It will have a positive effect on the airline's operating costs by reducing fuel
consumption through reduced APU operation. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1  Reduce Project Scope to Current Approved Funding. To reduce the project
scope by $2,000,000 would require removing PC-Air installation for Concourse D and North
Satellite. This change would substantially reduce funding recovery from the VALE phase II
grant and still incur significant costs for Port staff to negotiate changes to the existing
contract. This is not the recommended alternative. 
Alternative 2  This alternative is to proceed with completion of the project to all Airport
gates for an additional cost of $2,000,000. Total project cost is estimated at $46,125,000. 
This is the recommended alternative. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Memorandum of Notification per RCW 53.19.060 of the Port's intent to amend Professional
Services Agreement P-00316148 by $250,000 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
On September 11, 2012, the Commission authorized payment of Change Order # 113 for
$776,910. This change order was paid from Project Construction Contingency. 
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 PMG soft costs.
Total project budget 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. 
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.