7a supp

Item No: _____7a_supp________
Date of Meeting: __April 5, 2011__
RCF Construction
March 4, 2011




February 1, 2011

RCF Construction

CSB Vaulted Ceiling Installation Progress            BMF South Ramp Retaining Wall Placement






NW Support Building Cladding Installation           ORI Forming and tying rebar at Abutment 1       2

Rental Car Facility Program
Contract - Status Summary

Base Contract       Revised         Additional Costs *           Unallocated       Billed to date
Amount                                     Balance      (as of Feb 2011)
In review **    Executed
Consolidated Rental Car Facility
Total Construction Costs  $224,837,739     $211,421,525       $214,455   $202,606,715        $8,600,355         $194,465,051
Construction Contingency Summary
Non Suspension Contract Changes   $5,953,159     $17,031,082     $11,830,698    $8,765,318       ($3,564,934)          $6,001,387
Suspension Related Contract Changes               $16,800,000         89,202    $8,640,600        $8,070,198          $8,474,182
$13,105,619
Off Site Roads
Construction Contract Amount   $7,627,485                             $7,627,485             $0          $2,467433
Construction Contingency   $1,087,000                    $134,060    $1,274,344        ($321,404)           $100,005

Bus Maintenance Facility
Construction Contract Amount  $13,086,444                            $13,086,444             $0           $185,828
Construction Contingency   $1,611,000                     $20,400         $0        $1,590,600               $0
NOTE: * updated as of March 9, 2011
** includes costs in dispute for entitlement or quantum

3

Construction Contingency Trending to Date

$40,000,000

$35,000,000 

$30,000,000 

$25,000,000

$20,000,000

$15,000,000

$10,000,000 

$5,000,000

$ 0
o,    6)         >    0;                    o    o
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m  x    m  w '0 '0 '0
o'\\  o"'\  o'   ~9\ '4')                 6"\  o"\  o"\
-Construction Contingency Budget               Executed Suspension + Non-Suspension Change Orders
Suspension Change Orders                     Total Executed Change Orders + In Review
4

Consolidated Rental Car Facility
Program Costs as of 3/14/2011
Project      6/30/09    2/2/10       Approved   Pending     Remaining   Expended to  Forecast to
Budget    Authorization  Transfers/  Transfers/   Contingency  Date      complete
Trends    Trends
RCF      $350,772,000  $350,772,000 $17,405,918  $12,252,900  $13,105,619  $272,291,136  $350,772,000
(1)
BMF     $28,282,000  $28,282,000 ($1,900,000)   $20,400  $1,590,600  $4,313,841  $26,382,000
ORI       $19,542,000   $19,542,000 ($1,954,656)    $134,060    $648,596   $6,476,473  $17,203,000
(2)                               (2)
MTI       $3,383,000    $583,746     $0      $0   $338,300   $160,247   $3,383,000
Buses      $17,327,000   $16,000,000 ($4,911,269)       $0    $219,897      $212   $12,415,731
Unallocated
$0         $0  $9,070,269    ($333,000)   $8,737,269        $0        $0
Contingency
(1)
Total      $419,306,000   $415,179,746  $17,710,262   $12,074,360  $24,640,281  $283,241,909  $410,155,731
(1)  Pending transfer will augment budget
(2)  Pending transfer includes $970,000 requested in Commission memo. Once approved, transfer will augment contingency
and budget.
5

SEATTLE-TACOMA INTERNATIONAL AIRPORT
CFC REVENUE FORECAST TO ACTUAL COMPARISON
UPDATED 3/1/11


$147. 5 eumuwveeewsuues 
AS OF SEP 2012              ,X
RICONDO FEASIBILITY ANALYSIS ,'
$146.6 M              x
5142.5

5137. 5 

$132. 5

5127.5
MILLIONS 5122. 5
IN $117. 5
REVENUES $112. 5 
CFC $107. 5
$102. 5


$97.5 

$92.5

$87.5 


582.5
Jan 10
--K- FORECAST
llSeriesZ   837                  91.2 | 93.9 | 96.4 | 98.7 103.9 | 105.5 | 107.0| 

Notes:
The forecast is from the Ricondo Feasibility Analysis which was the basis for the RCF bond issuance
No interest proceeds are reected in actuals shown above                                                                                                                         66

Rental Car Facility
Funding Plan Update


7

Background
2009 funding plan for the Consolidated Rental Car
Facility included use of variable rate debt
Initially in the form of a line of credit
up to $100 million
to be replaced with variable rate bonds in the
future
Line of credit expires this year
Currently no outstanding balance

8

Estimated Project* Funding  July 2009
Sources of Funding - July 2009 ($mil.)
non-CFC funded costs               12
CFC cash                       69
tax-exempt bonds                19
taxable bonds                   248 
future variable rate debt              51
future Airport deferred interest loan      20
TOTAL                   419 
* Excludes bond related costs

9

Line of Credit can be replaced by
Commercial Paper (CP)
Port's current program has capacity  no additional bond issue
needed
Program totals $250 million
Flexible draws - as needed, no over-funding
Consistent with original plan to include a portion of variable rate
debt
Lower interest rates
Flexible re-payment
Can be converted to a longer-term solution when appropriate


10

Status of the Port's CP Program
CP Program ($ mil.)            Column1
Bank of America Letter of Credit        100
Bayerische Landesbank Letter/line      150
TOTAL                   250
Projected Uses ($ mil.)
Current outstanding                42
Liquidity                         50
Rental Car                       51
TOTAL                  143

11

Alternatives
Issue new variable rate bonds
Additional costs and debt management
No benefits compared to CP
Issue fixed rate bonds
No variable rate risk
Higher cost
Risk of over-issuing


12

Next Steps
Cancel Line of Credit
Use CP as needed to complete the project
Report to Commission on the final funding plan
Based on final project costs
Reflecting updated CFC forecast

13

Walker Parking Consulting Contract
Original Solicitation and Selection competitive.
Original Contract Method: Award base ($100k) and
amend (current total $31.5m) as work progressed.
Project History was multiple stops, starts and changes
over 10 years.
Rules changes include a new State law, two Commission
Resolutions and two Port Policies.
Actions were each consistent with then current
requirements as understood at the time.
Procedural details would be different today, contract
method may change or not.
14

Service Agreement Rules Changes
Resolution 3181 as amended by the Commission in November of 1994 and
Policy PUR-2 dictated requirements for Professional Services Agreements.
Senate Bill 3274 in June 2008 clarified limits on amendments and required
staff to inform Commission when contract value grew by 50%.
Resolution 3605 in August of 2008 replaced Resolution 3181, restricted
adding new scope to contracts and required notifying the Commission if
amendment to a contract grew value by 50% of the original contract value.
CPO-1 in January 2009 replaced PUR-2, implemented the service
agreement provisions of 3605 and defined the project-specific service-
directive type consulting contract.
Amended Resolution 3605 in November of 2009, added a requirement to
specifically request Commission authorization for any amendment to a
Professional Services Agreement over $300,000.
CPO-6 in January 2010 states Port procedures for competition waivers.
15

Legend
Procurement procedures in place
Walker Parking Contract                Authorizations
RCF                    Rental Car Facility
History
ORI                 Off-Site Roadway Improvements
BMF               Bus Maintenance Facility
RCI                     Rental Car Improvements
Cumulative
Approach If Done Today (RCW 53.19.060 &
Amend No.       Date       Amount    Authorization or             Purpose            Project
Amended 3605)
Obligation
Authorization      11/1/94                              Resolution 3181 Amended                           Updated 3181 & PU-2
Authorization      3/22/01       $3,500,000      $3,500,000   Program Schematic Development              Program   Service Agreement
Base         3/5/04       $100,000      $100,000   Initiate Team, Design Procedures            Program   Service Directive
Authorization      4/22/04       $3,330,000                Rental Car Improvements                   RCI       New Solicitation
1         6/2/04       $50,000      $150,000   Detailed Programming                 RCI      Not in Original Solicitation
2         6/10/04       $50,000      $200,000   Concept Validation                   RCI      Not in Original Solicitation
3         6/17/04      $879,000     $1,079,000  Concept Validation                   Program   Service Directive
4         7/8/04       $436,162     $1,515,162  Finalize PS&E                      RCI      Not in Original Solicitation
5         9/27/04       $61,213      $1,576,375  Construction Support Services             RCI      Not in Original Solicitation
6        10/15/04      $500,000     $2,076,375  Detailed Programming                 Program   Service Directive
Authorization      11/9/04      $18,675,000     $22,175,000   Design RCF, Procure GC/CM                 Program   Amendment & 50% Notification
7        12/29/04      $84,000      $2,160,375  Main Garage Improvements              RCI      Not in Original Solicitation
8         6/3/05       $300,000     $2,460,375  Shelve Project                      Program   Service Directive
9         12/1/05      $550,000     $3,010,375  Restart Programming, ADPR              RCF, ORI   Service Directive
10         6/7/06       $750,000     $3,760,375  Restart Concept Re-validation             RCF     Service Directive
11        12/14/06     $2,249,615     $6,009,990  Schematic Design                    RCF     Service Directive
Authorization      2/27/07       $6,460,183     $28,635,183   Additional Design; Pre-Construction            Program   Amendment & 50% Notification
12        3/14/07      $320,000     $6,329,990  Site Design                       RCF     Service Directive
13         5/8/07      $5,000,000    $11,329,990  Design Development                  RCF     Service Directive
14         6/4/07       $517,659     $11,847,649  Design Development                  ORI      Service Directive
15        9/10/07      $180,062     $12,027,711  Conceptual Design                   BMF     Not in Original Solicitation
16        10/5/07      $6,500,000    $18,527,711  Finalize PS&E                      RCF     Service Directive
17        12/18/07      $422,255     $18,949,966  Schematic Design                    BMF     Not in Original Solicitation
18        1/30/08      $136,644     $19,086,610  Temporary Facilities; ORI Cost Estimate        RCF, ORI   Service Directive
19        2/21/08       $51,600     $19,138,210  Traffic Signal Design                   ORI      Service Directive           16

Authorization      5/13/08       $3,574,300     $32,209,483   Additional Design; Award GC/CM              Program   Amendment & 50% Notification
Legislation        6/12/08                                HB-3274 in effect                                   Port Contracting
20        6/22/08      $200,000     $19,338,210  Construction Support Services             RCF     Service Directive
21        7/22/08      $1,340,595    $20,678,805  Finalize PS&E                      ORI      Service Directive
22        7/21/08      $5,700,000    $26,378,805  Construction Support Services             RCF     Service Directive
Authorization      8/26/08                              Resolution 3605 Replaces 3181                        Revamps Past Procedures
23        8/27/08      $104,070     $26,482,875  Purchasing Support Services              RCF     Service Directive
24        9/25/08      $127,380     $26,610,255  Design Claims Resolution                RCF     Service Directive
25        10/21/08        $0       $26,610,255  Rate Changes                      Program   Amendment
Authorization      11/11/08       $552,000      $32,761,483   Additional Design                        ORI       Amendment
Policy         1/31/09                                CPO-1 Replaces PUR-2                                Service Agreement Procedures
26        4/17/09      $265,172     $26,875,427  Design Modifications; Complete PS&E         RCF, ORI   Service Directive
Authorization      6/30/09       $591,670      $33,353,153   Additional Design                        ORI, BMF   Amendment
27         9/3/09       $6,879      $26,882,306  Revise Small Operator Area               RCF     Service Directive
28        9/18/09      $275,331     $27,157,637  Design Claims, Additional Design            RCF     Service Directive
Authorization      11/3/09                              Resolution 3628 Amends 3605                        $300,000 Amendment Limit
29        12/4/09      $111,863     $27,269,500  Additional Design Services               ORI      Service Directive
Authorization      12/15/09       $300,000      $33,653,153   Additional Design                        ORI       Amendment
Policy         1/10/10                                CPO-6                                           Competition Waiver Procedure
30         2/9/10       $36,677     $27,306,177  Additional Signal and Lighting Design          ORI      Service Directive
31        4/14/10       $42,433     $27,348,610  Design Claims Resolution                RCF     Service Directive
Authorization       6/8/10       $4,000,000     $37,653,153   Additional Construction Support              RCF      Amendment & 50% Notification
32         7/7/10      $3,770,000    $31,118,610  Construction Support Services             RCF     Service Directive
Authorization      1/25/10       $350,000      $38,003,153   Construction Support Services                ORI       Amendment
17
33         2/3/11       $347,506     $31,466,116  Construction Support Services             ORI      Service Directive

What would we do today?
Allowable contract scope is defined by the
solicitation.
Service-directive contracting is preferred in part
because it makes ultimate contract total more
visible.
Base and amendments contracting still
considered when course of project is uncertain.
Contract scope limits strictly enforced.
Projects and contracting go better when decisions
and events don't delay progress.

18

Wayfinding and Signage Issues
Consolidated Rental Car Facilities
Other Facilities                        SeaTac's solution
Early recognition of signage issues so conducting several
Lack of way-finding signs directing passengers to Facility
full-sized on-site mock-ups with Industry to test the
from airport, especially if multiple terminals exists or RCF
adequacy and visibility. Identified sign to in areas of poor
across from terminal (no busing).
lighting to be back lit.
There was a lack of consistency withthe terminology       Captured lessons learned from other facilities, so working
between other cities airports and facilities. Lack of timely    very closely with the Industry on use of common
planning and time to make changes.                 terminology, logo's and branding.
Conducting site walk through tours with Industry reviewing
Inconsistent sign size, color, location, lighting, directional    sign placement and key decision points customers will
arrows and font size hard to see/follow which confuses      experience within both the RCF and Terminal and between.
customers. Lack of timely planning and time to make
changes. Must consider driving or walking to the facility or   Working closely with the Port's signage department and
the terminal(s), bus pick up/drop off, terminal way finding    Turner's sub-contractor for consistent sign size, color,
and visitors to the facility.                             location, lighting, directional arrows and font size.

The bus identification and busing signage at terminals and   Busing Committee developed criteria to make RAC buses
RCFs not clear which confuses customers. Closing counters   clearly marked for easy identification. Includes brand logos
and directing people to bus stops a challenge            representing companies in the RCF.
Signage for vertical movement confusing. Also, the human   Developing dedicated escalator signage to make it easy for
factor where passengers simply follow others and end up on  the passenger to follow or to re-direct if they make a
the wrong floor, though very large clear signage provided.    mistake.
19

Activation Recommendation to
test our wayfinding and signage
After construction is complete and before the facility opens, Port staff will be recruited as pretend
customers, given mock "assignments", directed to find their way either to a specific location in
the RCF or between the RCF and Terminal and to critique the signage.
Mock customer testing will be done in time to allow for signage enhancements, if necessary.
Examples of mock "assignments" include:
Return vehicle to the RCF, stop to use the restroom before boarding a bus back to the airport.
Meeting someone from another flight (1 hour behind yours) in the Central terminal to get
something to eat before you both make your way to the Rental Car Bus together.
Drop off a friend at the RCF to rent a car that are not traveling from the airport.
Disembarking plane from the North satellite, retrieve bags from baggage claim and make
your way to the Rental Car Bus. You are renting a car without a reservation.
20

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