PORT OF SEATTLE 
MEMORANDUM 

COMMISSION AGENDA             Item No.      6b 
Date of Meeting     April 13, 2010 
DATE:    March 26, 2010 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Michael Smith, Mechanical Manager, Aviation Facilities and Infrastructure 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT: Renewal and Replacement of 42 Escalators and 2 New Escalators project at 
Seattle-Tacoma International Airport (CIP # C800237). 
Amount of This Request: $51,817,000       Source of Funds: Airport Development Fund 
& Future Bonds
Amount of Sales Tax: $3,801,000                Number of Workers Employed: 80 
ACTION REQUESTED: 
Request Port Commission authorization for the Chief Executive Officer (CEO) to advertise a 
request for qualifications, issue a request for proposals, execute the design-build contract, apply a
Project Labor Agreement, and construct the Renew/Replace 42 Escalators and 2 New Escalators 
project (CIP # C800237) at Seattle-Tacoma International Airport (Airport) for an additional 
amount of $51,817,000, bringing the total authorization to $55,000,000. 
SYNOPSIS: 
This memorandum requests approval to advertise a Request for Qualifications and authorization
to execute a design-build construction contract , in accordance with RCW 30.10.280 and 300  
330, to replace forty-two (42) existing escalators in the Main Terminal, Concourse B, and the
South Satellite, and install two new escalators in the South Satellite. These escalators are critical
infrastructure essential to the operation of Sea-Tac International Airport. The subject escalators
have reached the end of their useful service life, resulting in increasing levels of repairs and
impacts on the traveling public. The installation of the new escalators will reduce annual
escalator repair costs by an estimated $250,000 and achieve an estimated 20% increase in energy
efficiency. The use of a Project Labor Agreement is recommended for this project to avoid
potential work stoppage and benefit safety. The Commission previously authorized $3,183,000 
for design on July 22, 2008. This authorization for construction will increase the project
authorization by $51,817,000 for an estimated total project cost of $55,000,000. The airline cost
per enplaned passenger (CPE) will increase incrementally by $0.22 through 2013, which had
earlier been factored into the 2010 - 2014 business plan forecast.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
March 26, 2010 
Page 2 of 6 
BACKGROUND: 
The escalators included in this project have been in daily use since their installation in the early
1970's and have reached the end of their useful service life. Several of the escalators have failed
over the past few years causing passenger disruptions and requiring costly emergency repairs. In
an effort to lessen the impact of further failures, a significantly higher level of repairs and
maintenance has also been necessary, resulting in continuing impacts on the traveling public and
increased maintenance expenses. Due to the age of these escalators, repair parts are difficult to
obtain and sometimes are only available through custom manufacturing which is expensive and
has long lead times. The level of the recent repairs has only marginally improved reliability due
to the age of the escalator components, with a propensity for further failures despite increased
levels of inspection and maintenance. 
This project will be executed using the "Design-Build" contracting method in accordance with
RCW 39.10.280 and 300-330. The project was approved by the legislatively-mandated Capital
Projects Advisory Review Board (CPARB), Project Review Committee on February 2, 2010, to
use the Design-Build method. This contracting method promotes competition and innovation
necessary to address the complex construction methodologies and scheduling issues in this
project, in order to minimize disruptions to the traveling public and airport operations while
maximizing schedule performance. Performance specifications will be established that can be
addressed by multiple manufacturers and/or general contractors. This approach allows the Port
to evaluate and select the design-builder based on technical qualifications/approach and price,
using a specifically defined set of evaluation criteria. The award will be based upon the highest
scored proposal but not necessarily the lowest price, as determined by the Port. The Port
previously stated in the July 2008 Commission Memorandum its intent to use a "Best Bid"
approach, however, it was later determined that the applicability of the Best Bid procedures for
the type of selection desired for this project was uncertain. The use of the Design-Build method
will achieve the same approach but within defined statutory contracting procedures including
CPARB approval. . 
Under the design-build method, the Port will publicly advertise a Request for Qualifications from
which no more than five respondents will be selected to submit a Request for Proposal (RFP).
The proposers will prepare and submit their proposed technical approach, escalator product, and
price. The successful proposer will perform the design, manufacturing and installation in
accordance with the RFP requirements. As required by RCW39.10.330, honorarium payments
will be provided to finalists submitting best and final proposals that are not awarded the contract. 
As provided by Resolution No. 3605 (Section 4.2.3.2), the CEO will promptly notify the
Commission of the award. The Commission has five business days after the CEO's notification
to request a delay in award. 
The use of a Project Labor Agreement is recommended for this project. The primary factors
contributing to the recommendation are the inclusion of a no-strike clause to avoid the potential

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
March 26, 2010 
Page 3 of 6 
for work stoppage and subsequent impacts on airport operations and to the traveling public, and a
substance abuse prevention program to benefit safety. 
PROJECT DESCRIPTION/SCOPE OF WORK: 
Project Statement: 
This project will replace 42 existing escalators that have reached the end of their useful life, and
include the installation of 2 new escalators at the South Satellite by December 2013 for 
$55,000,000. 
Project Objectives: 
Remove and replace the 42 existing escalators in an accelerated manner with the least
amount of disruption to Airport operations as possible. 
Install 2 new escalators in the South Satellite to improve operational performance and 
reliability, and address future passenger growth. 
Include heavy-duty escalator components for improved reliability and overall longevity. 
Increase the energy efficiency of the escalators. 
Scope of Work: 
Remove and replace 42 existing escalators at the Airport with new heavy-duty escalators in the
same locations and configurations, and add 2 new escalators at the South Satellite. The new
escalators in the South Satellite will be installed adjacent to the existing escalators traveling from
the transit station level, up to the mezzanine level, and continuing up to the concourse level. The
second new escalator between the transit station and the mezzanine was added following the
original Commission authorization to address future capacity demands and maintenance
flexibility. The escalators will meet all current escalator code requirements, and provide a safe
convenient mode of vertical transportation for the traveling public. 
STRATEGIC OBJECTIVES: 
Ensure Airport and Seaport Vitality 
The project provides enhanced reliability and performance for critical vertical transportation in 
significant 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. This project supports and encourages Airport environmental initiatives. 
This project has a generally positive effect on the environment to the extent that the new
escalators will have features that improve energy efficiency compared to the existing units. The
energy efficient features adjust the speed and energy use of the escalators based on load and
usage.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
March 26, 2010 
Page 4 of 6 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary 
Original Budget                        $55,000,000 
Budget Increase                              $0 
Revised Budget                       $55,000,000 
Previous Authorizations                    $3,183,000 
Current request for authorization              $51,817,000 
Total Authorizations, including this request       $55,000,000 
Remaining budget to be authorized                  $0 
Project Cost Breakdown              Total Project 
Construction costs                     $41,161,000 
Port furnished equipment                       $0 
Sales tax                              $3,801,000 
Outside professional services                $1,343,000 
Art Program                          $262,000 
Aviation PMG and other soft costs           $8,433,000 
Total                                $55,000,000 
Given the nature of the design-build process being used for the escalator project, the accelerated
schedule, and the difficulty of integrating artwork into the specification criteria for the escalator
units, the Port will establish a separate work project for the art. The Art Oversight Committee
will be defining an art plan for this project. 
Source of Funds 
This project (CIP # C800237) was included in the 2010-14 capital budget and plan of finance as
a committed project with a budget of $55.0 million.  The funding source will be the Airport
Development Fund and/or future revenue bonds. A new revenue bond issue is planned for the
second half of 2010. 
Financial Analysis 
CIP Category 
Renewal/Enhancement 
Project Type              Infrastructure Upgrade 
Risk adjusted Discount rate     N/A

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
March 26, 2010 
Page 5 of 6 
Key risk factors             N/A 
Project cost for analysis        $55,000,000 
Business Unit (BU)          Terminal 
Effect on business performance  Increase NOI after depreciation 
IRR/NPV             N/A 
CPE Impact             CPE will increase incrementally through 2013 at
which point approximately $.22 will have added to
CPE; however, this project was already included in
the budgeted business plan forecast so there is no
change. 
ECONOMIC IMPACTS: 
The Airport will provide a higher level of service to the traveling public, while reducing
escalator repair costs an estimated $250,000 annually. 
ENVIRONMENTAL SUSTAINABILITY/COMMUNITY BENEFITS: 
The new escalators will be 20% more energy efficient than the existing escalators reducing the
carbon footprint for this activity. 
TRIPLE BOTTOM LINE SUMMARY: 
This project will reduce the overall maintenance costs by reducing the high costs of emergency
repairs. This effort reduces the Airport's exposure to liability by replacing the escalators that are
beyond their useful life. Ensuring that the Airport's vertical transportation system is safe and
reliable promotes efficient Airport operations to benefit the traveling public. 
PROJECT SCHEDULE: 
Commission Authorization to Advertise            April 2010 
Advertise Request for Qualifications               May 2010 
Issue Request for Proposals                    June 2010 
Commission Authorization to Award (if needed)        December 2010 
Design/Installation Start                       January 2011 
Installation Complete                       December 2013 
ALTERNATIVES CONSIDERED/RECOMMENDED ACTION: 
Alternative 1: Proceed with the Renew/Replace 42 Escalators and 2 New Escalators project
using the "Design-Build" contracting method. This approach renews and upgrades the aging
escalators at the Airport, improving passenger flow through the reduction of service outages.
This contracting method provides the opportunity for competitive delivery schedules and design

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
March 26, 2010 
Page 6 of 6 
solutions, and effective pricing by proposers. This method will shorten the overall schedule and
decrease the risk associated with the traditional design-bid-build approach. This is the
recommended alternative. 
Alternative 2: Continue the repair and maintenance of the existing escalators. This is a reactive
approach that disrupts passenger flows throughout the facility and is not cost effective. This is
not the recommended alternative. 
Alternative 3: Proceed with the Renew/Replace 42 Escalators and 2 New Escalators project
using the "Design-Bid-Build" contracting method. This approach renews and upgrades the aging
escalators at the Airport; however, the traditional Design-Bid-Build contracting method does not 
adequately allow for innovation and competition by prospective manufacturers and/or general
contractor. This method would base the selection on price versus best overall approach that
considers technical approach and price, lengthen the overall schedule, and put the Port at greater
risk for design changes, schedule delays, and change orders. This is not the recommended
alternative. 
ATTACHMENTS: 
None. 
PREVIOUS COMMISSION ACTION: 
On September 22, 2009, the Commission was briefed on the Airport's "Facility Functionality
and Readiness", which included a short discussion of the escalators and elevators. 
On July 22, 2008, the Commission authorized $3,183,000 to prepare the performance
specifications and preliminary design for the Renew/Replace 42 Escalators and 1 New Escalators 
project at Seattle-Tacoma International Airport. The current request includes an additional new
escalator, as noted in the Scope of Work section.