PORT OF SEATTLE 
MEMORANDUM 

COMMISSION AGENDA             Item No.      5b 
Date of Meeting   September 28, 2010 
DATE:    September 13, 2010 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    David Soike, Director, Aviation Facilities and Capital Program 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  Isolation Valve Upgrade project at Seattle-Tacoma International Airport (CIP # 
C102334). 
This Request:  $1,149,000               Source of Funds: Airport Development
Fund 
Total Project Budget: $2,147,000          Jobs Created: 20 (entire project) 
Sales Tax Paid: $60,000 (this authorization) 
ACTION REQUESTED: 
Request Commission authorization for the Chief Executive Officer to (1) complete design of the
entire Seattle-Tacoma International Airport (Airport) Water Isolation Valve Upgrade Project; (2)
execute a contract to purchase valves and related equipment; and (3) utilize Port crews to
complete installation of the isolation valves in non-secure Airport areas. The amount of this
request is $1,149,000. The total cost of the project is estimated to be $2,147,000. 
SYNOPSIS: 
The water distribution system at the Airport is almost 40 years old. Presently, several areas of
the water piping system have malfunctioning isolation valves, including some locations on the
airfield. This project will replace failing valves and add valves in several strategic locations so
that major sections of the water system are less vulnerable to outages. It will enable the Airport
Water Department to isolate sections of the domestic water mains at the Airport in the event of a
water main break or for construction-related activities. The projected design operating life of the
new valves is 30 years. 
The CIP will be executed in two parts: (1) a Port Construction Services (PCS) managed project
to replace or install several valves in the non-secure areas of the Airport, and (2) a major
construction contract to replace or install several valves inside the security fenced areas 
(airfield).

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 13, 2010 
Page 2 of 6 
The (1) PCS managed project has an estimated total project cost of $704,000 and will be
constructed in Spring 2011 with Port crews and small works contractors using the existing design
provided by Port Staff. This request authorizes the Port to pre-purchase the valves and
associated equipment and to construct this portion of the project.
The (2) major construction project has an estimated total project cost for replacement of the
valves of $1,443,000. The design will be completed by Port staff and it will be included in the
larger 2011 Airfield Improvement Project (AIP) with construction beginning in May 2011. This
request authorizes the Port to complete design of a major construction project related to the
isolation valves and pre-purchase the valves and associated equipment. The Port will seek
authorization to advertise the 2011 AIP in January 2011.
Both portions of the project require special manufacturing of valves with an estimated 18-week 
purchasing lead time. Estimated cost of the valves for the total project is $382,000. The Port has
determined that it is in the best interest of both portions to pre-purchase the valves because of the
18-week lead time for manufacturing. The Port anticipates executing a contract for construction
around March/April 2011 so that construction can start by May/June 2011 in order to meet the
December completion schedule.
BACKGROUND: 
The majority of the water distribution system at the Airport is almost 40 years old. The system is
equipped with buried pipes and some strategically located valves so that portions of the system
can be isolated in the event of breaks, leaks, or tie-ins. 
Certain valves do not work properly, have failed altogether, or have reached the end of their life
expectancy. Major vital portions of the water system cannot be isolated because either an
existing valve does not work or an isolation valve was never originally installed.
PROJECT DESCRIPTION/SCOPE OF WORK: 
Project Statement: 
This project will add or replace strategic valves to allow isolation of portions of the water system
where existing valves are either missing or have failed.
Project Objectives: 
Replace existing valves that have reached or exceeded their useful life 
Install additional valves at strategic locations 
Reduce impacts to Airport operations during maintenance and future tie-ins 
Minimize water loss 
Minimize future life-cycle costs

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 13, 2010 
Page 3 of 6 
Maximize coordination with other projects (such as the 2011 AIP) 
Optimize use of infrastructure capacity 
Complete project on schedule and within budget. 
Projected design operating life for the new valves is 30 years. 
Scope of Work: 
This project will replace selected isolation valves and add new isolation valves to the 
domestic/fire water system. 
STRATEGIC OBJECTIVES: 
Ensure Airport and Seaport Vitality 
The project provides enhanced reliability and performance for critical water system 
infrastructure in strategically important areas of the Airport, which facilitates use of the Airport
by the traveling public. 
Exhibit Environmental Stewardship through Our Actions 
This project is consistent with the Port's goal of improving the long-term sustainability of its
facilities and operations by replacing equipment that has reached the end of its useful life. This
project has a generally positive effect on the environment to the extent that the existing valves
are old and malfunctioning and will be replaced with functional valves resulting in less water
wastage and reduced system down time. 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary 
Original Budget                                    $1,055,000 
Budget increase                                    $1,092,000 
Revised Budget                                  $2,147,000 
Previous Authorizations                               $ 0 
Current request for authorization                          $1,149,000 
Total Authorizations, including this request                   $1,149,000 
Remaining budget to be authorized                       $ 998,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 13, 2010 
Page 4 of 6 
Project Cost Breakdown (This Authorization) 
Construction costs (PCS and small works contractors)           $ 490,000 
Pre-purchased valves                                $ 382,000 
Design                                       $ 96,000 
Project Management                              $ 39,000 
Construction management/Admin/Procurement              $ 42,000 
Sales tax                                           $ 60,000 
Outside professional services                            $ 40,000 
Other                                            $ 0 
Total                                             $ 1,149,000 
Source of Funds 
The Water Isolation Valve project (CIP # C102334) was included in the 2010-2014 capital
budget and plan of finance as a committed project. The source of funds for the project will be
the Airport Development Fund. 
Financial Analysis Summary 
CIP Category                              Renewal/Enhancement 
Project Type                                Renewal & Replacement 
Risk adjusted Discount rate                        Not Applicable 
Key risk factors                                Not Applicable 
Project cost for analysis                            $2,147,000 
Business Unit (BU)                             Division-wide 
Effect on business performance                     Costs will be recovered
through rates and charges 
IRR/NPV                            Not Applicable 
CPE Impact                             Less than $0.01 in 2012,
but no change compared
to business plan forecast
as this project was
included. 
ECONOMIC IMPACTS: 
The project does not create any incremental economic impacts apart from supporting the existing
operations of the Airport.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 13, 2010 
Page 5 of 6 
ENVIRONMENTAL/COMMUNITY BENEFITS: 
The project will utilize energy efficient equipment, reduce water loss, improve quality of water
delivered to users, and reduce unplanned disruptions to operations. 
TRIPLE BOTTOM LINE SUMMARY: 
This project provides a cost effective means of accomplishing necessary renewal and
replacement of critical Airport infrastructure. 
PROJECT SCHEDULE: 
Complete Design  December 2010 
Pre Purchase Valves  January 2011 
Start Construction  March 2011 
Project Completion  December 2011 
ALTERNATIVES CONSIDERED/RECOMMENDED ACTION: 
Alternative 1: Renew and Replace Selected Valves in the Water System. Many of the water
valves to be replaced are nearly 40 years old and need to be replaced. Other valves, however,
continue to work well despite their age. These valves continue to perform as intended and would
not be replaced. Known defective valves would be replaced (and selected new valves added at
strategic locations) under this alternative. Lessons learned in this project would be used in
additional renewal and replacement projects for our water system and other similar utilities.
This is the recommended alternative. 
Alternative 2: Do Nothing. The water system would remain as is. Existing valves, including
those that are broken or compromised, would remain, and new valves would not be added.
Under this option, certain portions of the water system cannot be isolated without shutting down
major portions of the water system affecting major areas of the Airport. As the water system
continues to age, more frequent failures and unanticipated outages will occur. Adding additional
water system tie-ins as requested by customers will be more difficult in the future without the
ability to isolate portions of the water system. Disruptions to tenant and Airport operations will
increase. In addition, the Airport water system is a dual system providing water for domestic
uses and fire water. Pressure in the water system increases dramatically in the event of a fire, as
large diesel-powered fire pumps activate. An un-isolatable water main breakage corresponding
with a fire event could compromise response, increasing life safety and property damage risks.
This is not the recommended alternative. 
Alternative 3: Replace all Older Valves in the Water System. This would further enhance
reliability by replacing all older valves in the water system, but would be substantially more

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 13, 2010 
Page 6 of 6 
expensive, cause more temporary disruptions to operations, and is not proven to be needed at this
time. This is not the recommended alternative. 
PREVIOUS COMMISSION ACTION: 
No previous Commission action.