PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      5c 
Date of Meeting     July 26, 2011 
DATE:    July 20, 2011 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Mike Ehl, Director, Airport Operations 
Wayne Grotheer, Director, Aviation Project Management Group; 
Ralph Wessels, Airfield Program Leader, Project Management Group 
SUBJECT: United States Postal Service (USPS) Building Demolition; 
WP #104110/CIP #C800254 
Amount of This Request: $5,605,000    Source of Funds: Airport Development Funds 
Project Authorization to Date Including this Request: $11,829,213 
State and Local Taxes Expected to be paid: $386,000 (total project) 
Jobs Created: Estimate of 20 jobs 
Total Estimated Cost: $43,900,000 
ACTION REQUESTED: 
Request Port Commission authorization for the Chief Executive Officer to advertise and execute
a major construction contract for the United States Postal Service (USPS) Demolition Project at
Seattle-Tacoma International Airport (Airport) and authorize Port Construction Services (PCS)
to self-perform work in support of the USPS Demolition project. The amount of this request is
$5,605,000, and the total cost of the project is $43,900,000. 
SYNOPSIS: 
Sea-Tac International Airport's geographic location has traditionally been a determining factor in
the accommodation of Remain Over Night (RON) aircraft by airline operators. Despite a
reduction in overall aircraft operations of approximately 30% over the past decade, demand for
RON parking has not, and is not projected to, decrease. To accommodate future growth within
the very limited space available, the Airport must convert underutilized airfield assets to the
highest and best use. This project will demolish an existing building to facilitate either the nearterm
construction of multiple aircraft hardstands on the former site of the now vacant USPS Air 
Mail Center or an engine run-up area, or "hush house" as noise mitigation. The decision to
construct hardstands or a hush house will be based on an analysis of the best likely location for a
proposed hush house. 
The plan is to award one major demolition contract supported by a small works contract by PCS 
and related support work by PCS. This request would bring the total authorization for this
project to $11,829,213 out of a budget of $43,900,000. A subsequent contract will construct the
RON hardstand parking positions.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 20, 2011 
Page 2 of 5 
BACKGROUND: 
By virtue of being located in the northwest corner of the continental United States, a high
number of originating departures are scheduled by the airlines to leave early in the morning to 
reach the most frequented destinations at desirable times. Similarly, aircraft return to the Airport
at night to fuel and prepare again for the next day's early morning flights. As a result of the high
number of morning departures, a disproportionately high number of passenger aircraft remain
overnight at the Airport than there are terminal gates available. Indeed, while the Airport has in
operation approximately 78 aircraft gates, roughly another 30 off-gate parking locations are
required each night to accommodate RON aircraft. Hardstand parking positions are needed to
accommodate these off-gate RON aircraft so that they are available for the morning peak traffic
demand. After the first wave of early departures from the terminal gates is complete, the off-gate
RON aircraft are moved to the vacant gates for a second wave of morning departures. Without
the ability to accommodate off-gate RON aircraft, airlines would have to park these aircraft at
another airport and fly them in for the early morning departures, which would be a costly and
inefficient proposition. In the absence of sufficient RON parking capacity, airlines are unable to
provide the optimal capacity for the identified local demand. 
In August 2008, the Commission authorized 100% demolition design of the USPS Air Mail
Center facility and 15% design of hardstands to accommodate additional RON parking for
passenger aircraft. A memo to the Commission dated July 28, 2008, noted that between 2002 
and 2007 the Airport experienced 17% passenger growth in air traffic. with a corresponding
increased demand for RON parking of passenger aircraft. The available hardstands decreased by
two positions (taxiway N and P stubs) when the third runway and associated taxiways were
activated in 2008. Since 2008, the Airport has experienced a slight decrease in passenger
volumes, but growth has been positive over the past year for both passengers and operations with
no increase in available RON parking positions.
Factors influencing the supply and demand of RON positions are difficult to manage and predict
as airline flight and aircraft maintenance schedules change frequently throughout the peak travel
season, and occasionally unscheduled or irregular operations also occur. Until now, Airport staff
has met RON demand but with increasing difficulty by managing more frequent parking and
towing of aircraft onto and off of Airport controlled common use gates and hardstands, including
the hardstands reserved for cargo aircraft. While agreements between airlines can be negotiated
to allow RON parking of another airline's aircraft within the primary airline's leased hardstand
area, Airport staff does not have sufficient control over these areas to guarantee the availability
of RON space when needed. 
Additional RON parking positions are needed to meet the expected demand and to provide
flexibility to accommodate irregular schedules of both passenger and cargo aircraft. An in-depth
analysis by Airport staff, and consent from the airlines through the Majority in Interest approval
process, recommended the USPS Airmail Facility site for additional RON development at the
Airport. The Port Commission authorized termination of the lease with USPS and a capital
project for 100% demolition design and 15% hardstand design on August 26, 2008. Termination
of the lease was completed on February 15, 2010, for an actual buyout total of $4,972,045.45.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 20, 2011 
Page 3 of 5 
PROJECT JUSTIFICATION: 
Project Objectives:
The project objective is to demolish the USPS building in preparation for design, excavation, and
construction of additional RON parking for aircraft.
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work:
This demolition project will facilitate the later construction of hardstands for the use as RON
parking of aircraft at the former USPS site. This work will include establishing a new electrical
power connection to energize lighting in the adjacent cell phone parking lot, demolition of the
USPS building, and relocation of the Airfield Operations Area security fence. 
In conjunction with this project, the Port of Seattle Fire Department and several local fire
districts will be conducting training exercises in, around, and on the building prior to actual
demolition. 
Schedule: 
Commission Authorization to Advertise    July 2011 
Advertise                       August 2011 
Notice to Proceed                  November 2011 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary: 
Original Preliminary Budget             $28,097,000 
Budget increases                     $15,803,000 
Budget transfers                      $0 
Revised Budget                   $43,900,000 
Previous authorizations                 $ 6,226,213 
Current request for authorization        $ 5,603,000 
Total Authorizations, including this Request   $11,829,213 
Remaining budget to be authorized       $32,070,787 
The original preliminary budget is based on conceptual elements in the Comprehensive
Development Plan (CDP). Additional funds were granted to the project in 2009, as reflected in
the revised budget. Further cost development is required depending on the final configuration
and support systems specified by the airlines anticipated to fully utilize the hardstand. Such
systems could include in-ground electrical power to eliminate noise and emissions from onboard
aircraft auxiliary power units, accommodation for aircraft deicing, or the construction of other

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 20, 2011 
Page 4 of 5 
specialized facilities. In addition, taxiway grading requirements to optimize access to the site are 
currently being studied and will likely result in additional costs. The cost estimate will be
updated during the design phase for the subsequent project to construct the RON facilities. 
Budget Status and Source of Funds: 
Aircraft RON Parking USPS Site (CIP #C800254) is included in the 2008-2012 capital budget
and plan of finance as a business plan prospective project. The source of funds for this project
will be the Aviation Development Fund and revenue bonds. 
Financial Analysis and Summary: 
CIP Category                   Revenue/Capacity Growth 
Project Type                    Business Expansion 
Risk adjusted Discount rate           n/a 
Key risk factors                   n/a 
Project cost for analysis               $43,900,000
Business Unit (BU)                 Airfield 
Effect on business performance         NOI after depreciation will increase since capital and
operating costs will be recovered through landing fees 
IRR/NPV                  n/a 
CPE Impact                  $0.22 in 2016; however, no change from business plan
forecast as this project was included in the plan 

Lifecycle Cost and Savings: 
There is no lifecycle cost associated with the demolition phase of the project. 
ENVIRONMENT AND SUSTAINABILITY:
During periods of non-peak activity, the new hardstand may reduce the need for passenger
aircraft to RON at the distant north cargo hardstands, which are designed and utilized for air
cargo operations. This improved proximity to the terminal will reduce the travel distance from
RON spaces to the terminal, reducing cost and carbon emissions, and will be a more efficient
operation for the airlines. 
The CDP denotes the USPS demolition and hardstand project as a near-term airside project and
an environmental review (NEPA/SEPA) has been completed.
This demolition project is being used as a case study to gather information on how much of the
demolition materials are feasible to recycle, salvage, or be disposed of. This information will be
used in the future to guide Port standards and/or requirements on future projects.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 20, 2011 
Page 5 of 5 
STRATEGIC OBJECTIVES: 
This project supports the Port's strategy to "Ensure Airport and Seaport Vitality." 
BUSINESS PLAN OBJECTIVES: 
Additional hardstand capacity is in alignment with the future goals of the Airport to anticipate
and increase both passenger and cargo aircraft growth and demand. 
TRIPLE BOTTOM LINE SUMMARY: 
The development of the hardstand will provide a long-term solution for RON operations at the
Airport. It will increase airline efficiency and reduce emissions. The region will continue to
receive the economic benefit of the Airport operation. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
1.  Airport staff conducted a decision analysis to determine the best location for the
construction of new RON hardstands. Six sites were compared (Air Cargo IV, Delta Air
Lines Cargo, USPS, Fire Station, United Airlines Maintenance Building, United Airlines
Cargo Building) against nine criteria including cost, long-term plan compatibility,
operational flexibility, and tenant impact. All sites considered are currently occupied by
an existing facility. The USPS site was chosen over the other sites, primarily because it
is a sufficiently large site the use of which for RON parking is consistent with the longrange
CDP and because the USPS is an older building with diminished reuse value
potential in comparison to the other sites at the Airport. Also, the USPS site provides the
most number of RON positions, and it is less expensive to develop per RON position than
the other sites analyzed. Therefore, development of RON positions at the USPS site is
recommended.
2.  Operational alternatives include the airlines discontinuing morning departure flights,
foregoing market share, or parking aircraft at another airport overnight. None of these
support the strategic objective to ensure Airport vitality, and would either increase costs
to the operating airlines or result in loss of revenue from the loss of flights. This is not a
practical or recommended alternative. 
3.  An additional capital alternative considered was the construction of additional passenger
terminal facilities with aircraft gates to accommodate additional on-gate RON positions.
This alternative is very expensive and not necessary at this time, and therefore it is not
recommended. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Attachment A  Overview of area at the Airport to be demolished. 
PREVIOUS COMMISSION ACTION: 
On August 26, 2008, the Commissoin authorized the Chief Executive Officer to direct staff to 
amend the USPS lease to develop a cell phone lot, prepare demolition design of the USPS Air
Mail Center Facility at Seattle-Tacoma International Airport, and design overnight aircraft
parking positions and terminate the USPS building lease.