PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6a 
ACTION ITEM 
Date of Meeting     March 18, 2014 
DATE:    March 10, 2014 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Dave Soike, Director, Aviation Facilities and Capital Program 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  North Utility Tunnel Steam Piping Upgrade (CIP #C800659) 
Amount of This Request:        $1,250,220   Source of Funds:  Airport Development
Fund (ADF) 
Est. Total Project Cost:          $1,250,220 
Est. State and Local Taxes:         $74,600 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to design, advertise, and
execute a major works construction contract for the North Utility Tunnel Steam Piping Upgrade
project at Seattle-Tacoma International Airport in the amount of $1,250,220. 
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 North 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 North Satellite. 
BACKGROUND 
The steam pipes that provide heat and hot water to the North Satellite run from the boiler room in
through a utility tunnel to the North Satellite. As the temperature of these pipes fluctuates
through normal operations, the pipe lengths expand and contract. The expansion joints in these
pipes use ball joints that allow the pipe to lengthen and shorten without being damaged. These
ball joints have exceeded their life expectancy by 15 years. Many now leak and need to be
replaced and are showing signs of failure that could result in heat and hot water outages to the
North Satellite that could last several months. 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 North Satellite. This project was included in the 2014  2018
capital budget. 
The existing steam piping expansion joints were installed 45 years ago and have exceeded the
manufacturer's recommended useful life by 15 to 20 years. The ex pansion joint conditions were

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 10, 2014 
Page 2 of 5 
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
immediately 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 North Satellite for an extended period of
time. 
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, leaving the North Satellite
without heat or hot water for concessions and restrooms for several months. 
Expansion joint failure is also a safety concern; any personnel located in the vicinity will
be exposed to live high pressure steam that is operating at 100 pounds per square inch
pressure and has a temperature over 300 degrees Farenheit.
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 North Satellite tunnel. 
Project Objectives 
Replace existing expansion joints in steam and condensate lines in North Utility Tunnel. 
Complete project on schedule. 
Complete project within budget. 
Reduce risk of piping failure that could cause extended utility outages to North Satellite. 
Reduce safety risk to personnel working in North 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 North Satellite tenants and operations by installing a temporary
boiler to provide hot water to restrooms and concessions. 
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.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 10, 2014 
Page 3 of 5 
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 North Utility Tunnel. 
Perform necessary abatement of existing gaskets and pipe insulation containing asbestos. 
Install temporary propane boiler to provide hot water to North Satellite during
construction operations. 
Schedule 
The project schedule is as follows: 
Project Notebook Approval                               February 2014 
Commission Authorization for Design and Construction               March 2014 
Design Start (Under Existing IDIQ)                             March 2014 
Advertise, Execute                                         June 2014 
Construction                                July through mid-October 2014 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                      $1,000,000          $0    $1,000,000 
Budget Increase                       $250,200                $250,200 
Revised Budget                     $1,250,200              $1,250,200 
Previous Authorizations                       $0          $0          $0 
Current request for authorization            $1,250,200          $0    $1,250,200 
Total Authorizations, including this request     $1,250,200          $0    $1,250,200 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost              $1,250,200          $0    $1,250,000 
Project Cost Breakdown                     This Request       Total Project 
Construction                                $785,264          $785,264 
Construction Management                     $168,831         $168,831 
Design                                    $95,882           $95,882 
Project Management                         $117,790         $117,790
Permitting                                    $7,853            $7,853 
State & Local Taxes (estimated)                    $74,600           $74,600 
Total                                      $1,250,200         $1,250,200 
Budget Status and Source of Funds 
This project was included in the 2014-2018 capital budget and plan of finance with a budget of
$1,000,000. Upon completion of the project notebook, the budget estimate was refined. The

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 10, 2014 
Page 4 of 5 
budget increase will be transferred from the Aeronautical Allowance CIP (C800404) so that
there will be 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        $1,250,220 
Business Unit (BU)          Terminal Building 
Effect on business performance  NOI after depreciation will increase 
IRR/NPV             N/A 
CPE Impact             Less than $.01 in 2015. 
Lifecycle Cost and Savings 
This project will eliminate the existing steam leaks that are causing energy losses 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 North 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 North 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 North Satellite. 
Environmental Responsibility 
As stated above, this project will eliminate the existing steam leaks that are causing energy losses 
estimated to be around $10,000 annually for a single steam leak through 1/8" orifice at 100
pounds per square inch operating pressure. Eliminating this wasted energy will be a benefit to the
environment.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 10, 2014 
Page 5 of 5 
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)  Do Nothing - 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 North Satellite. This is not the recommended alternative. 
Alternative 2)  Attempt to replace the most vulnerable expansion joints using small works
funds. 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 North Satellite during the outage. This is not the recommended alternative. 
Alternative 3)  Replace the expansion joints in both the steam pipe and condensate lines. This
option allows the upgrade at one time. Temporary propane water heater can be provided during
this work to minimize impact on the heating water and domestic water systems. This method is
the most economical because it requires only one mobilization. This is the recommended
alternative. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None