PORT OF SEATTLE 
MEMORANDUM 

COMMISSION AGENDA             Item No.      6e 
Date of Meeting   February 23, 2010 
DATE:    February 10, 2010 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Ralph Graves, Managing Director Capital Development Division 
Wayne Grotheer, Director Aviation Capital Improvement Program 
SUBJECT:  Consolidated Aviation Warehouse (CIP # C800071) 
Amount of This Request: $300,000        Source of Funds: Airport Development Fund
Amount of Sales Tax: $27,000 
ACTION REQUESTED: 
Request Commission ratification of a Developer Extension Agreement between the Port of
Seattle and Highline Water District; request authorization for the Chief Executive Officer to
execute a Bill of Sale per the requirements of the Developer Extension Agreement; and request
authorization of an increase of the project authorized amount by $300,000 to pay anticipated
additional in-house and consultant costs to complete the Consolidated Aviation Warehouse
project at Seattle-Tacoma International Airport (Airport), for a total authorization of $9,300,000.
This authorization is not within the Current Revised Budget. 
SYNOPSIS:
The Commission was briefed in the February 9, 2010, Commission meeting that the Developer 
Extension Agreement was inadvertently signed by a Port of Seattle Project Manager who did not
have the authority to do so in February 2009. This memorandum requests ratification of that
Developer Extension Agreement, as Resolution 3605 does not delegate such authority. As part
of the Developer Extension Agreement the Port of Seattle is required to execute a Bill of Sale
that would transfer the title of the water main installed as part of the Consolidated Aviation
Warehouse project to Highline Water District. The fair market value of the water main is 
$152,000. 
Harthorne Hagen Architects requests relief for staff and sub-consultants time spent beyond the
professional services agreement to complete the structural engineering, coordination of as-built
documents that comply with Highline Water District and Midway Sewer District standards.
These agencies' particular standards do not comply with the Port of Seattle requested standards
as identified in the Port Professional Services Agreement with Harthorne Hagen, therefore
additional work and associated costs are necessary. Additional funding is also required for

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
February 10, 2010 
Page 2 of 6 
advances in communications technology (wireless connectivity to the Airport) and facility
security systems identified during the construction phase of the project that were not part of the
original project scope. Harthorne Hagen has indicated intent to submit a formal request for
adjustment, and staff acknowledges the potential merit of the request. The Commission
previously authorized a total of $9,000,000 for the design and construction of the Consolidated
Aviation Warehouse project 
BACKGROUND: 
The Consolidated Aviation Warehouse project was originally approved by the Port Commission
for design and construction in June 2006 at the intersection of 28th Ave South and S. 192nd Street
in the City of SeaTac. This project's original schedule was design June through December 2006,
site work and construction complete February 2007, and substantial completion January 2008. 
Subsequently staff determined that a better location for the Consolidated Aviation Warehouse
would be another Port property located on 28th Ave. This new location maximized land use for
later development to occur and was incorporated into the Final Seattle Tacoma International
Airport Comprehensive Development Plan in 2007. 
The Commission originally approved the project in June 2006. In April 2008 the Commission
approved a budget increase of $700,000 for the Consolidated POS Aviation Warehouse project
due to the increased distances to connect utilities, modifications for rain water runoff controls
and additional engineering studies at the new site. This location change also extended the
original schedule. The revised schedule called for design complete April 2008, construction
complete February 2010, and Beneficial Occupancy in March 2010. 
Given these changes and schedule completion delays, the project has several remaining issues to
resolve as part of the project. To provide water service to the site, Highline Water District
requires the Port of Seattle to execute a Bill of Sale that would sell the water main installed as
part of the Consolidated Aviation Warehouse project to Highline Water District. The Port's 
Engineer of Record (Harthorne Hagen) will need to complete "As Built condition" drawings for
the project as required by the local utilities and the Port of Seattle. Commission authorization of
this request will also provide funds to resolve a pending claim for additional costs from
Harthorne Hagen and complete out of scope construction elements identified during construction
given the advances in communications technology and changes in specified equipment in the
design that are not longer available or considered obsolete. Estimated costs to complete the
project including all of these elements are $300,000.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
February 10, 2010 
Page 3 of 6 
PROJECT DESCRIPTION/SCOPE OF WORK: 
Project Statement: 
Develop and construct a warehouse and distribution center within a three mile radius of the
Airport that meets Aviation Maintenance needs with office space, employee and visitor parking
by the spring of 2010 for $9,300,000. 
Project Objectives: 
Construct a warehouse and distribution center 
Provide a high bay structure for storage racks 
Provide for an expansion area on site for future needs 
Provide parking spaces for staff and visitors 
Provide loading docks that include truck delivery bays and garbage and recycling compactors
bays 
Provide drive-in doors 
Provide an area for storage containers on grade within the perimeter fence. 
Scope of Work: 
Complete the "As Built condition drawings" when construction is completed 
Complete additional scope identified during construction due to advances in technology 
STRATEGIC OBJECTIVES: 
The project supports the following Aviation Division Strategies: 
Maintain Financial Strength  By consolidating distribution and warehousing, Aviation
Maintenance is reducing the duplication of inventory, increasing efficiency and controls in the
management of the inventory. This leads to increased craft productivity and conforms to
established accounting principles. 
Demand-Driven High Density Development  To manage the land and facilities for high-density
construction and cost-effective operations, the Distribution Center is being located near the
future Port of Seattle Aviation Airfield and Vehicle Maintenance Shops on the southeast edge of
the airport property in accordance with the Comprehensive Development Plan (CDP) to
maximize future use of the area south of the Airport fuel farm.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
February 10, 2010 
Page 4 of 6 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary 
The following budget and authorization summary is for Consolidated POS Aviation Warehouse 
(CIP # C800071): 
Original Budget                              $8,300,000
Previous Budget Increase                          $700,000
Current Budget Increase                           $300,000
Revised Budget                             $9,300,000
Previous Authorizations                          $9,000,000
Current request for Authorization                     $300,000
Total Authorizations, including this request              $9,300,000
Remaining Budget to be Authorized                       $0
Project Cost Breakdown 
The breakdown of costs includes additional costs for construction, sales tax, outside professional
services, and Port costs. The exact split of these costs is not yet known and includes resolution of
a pending claim from Harthorne Hagen. We believe that the total of these costs will not exceed
$300,000. 
Source of Funds 
This project was included in the 2010-2014 Capital Budget and Plan of Finance as a committed
project (CIP C800071) with a budget of $9,000,000. The budget increase of $300,000 will be
transferred from CIP #C800152, Non-aeronautical new projects allowance, a business plan
prospective project. Thus, the total capital budget for Aviation will not change. The project is 
funded by the Airport Development Fund and airport revenue bonds. The budget increase will
be funded by the Airport Development Fund. 
Financial Analysis Summary 
New Facility 
CIP Category 
Project Type              Renewal & Replacement 
Risk adjusted Discount rate     Not applicable 
Key risk factors            Not applicable 
Project cost for analysis         $300,000

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
February 10, 2010 
Page 5 of 6 
Business Unit (BU)           Division-wide 
Effect on business          Approximately 60% of the capital and operating
performance              costs will be allocated to the airfield and terminal
cost centers and recovered from the airlines through
landing fees and terminal rents. NOI after
depreciation will increase. All costs above the
original budget of $8.3 million are treated as nonaeronautical
costs since the cost increase was caused
by a Port decision to move the warehouse to permit
other non-aeronautical development. 
IRR/NPV              Not applicable 
CPE Impact             Increase CPE by $.03 in 2010. As noted above, the
cost increase has no impact on CPE. 
ECONOMIC IMPACTS: 
This project does not create any incremental economic impacts apart from supporting the
existing substantial economic impacts at the Airport. 
ENVIRONMENTAL SUSTAINABILITY/COMMUNITY BENEFITS: 
The Consolidated Port of Seattle Aviation Warehouse and a Distribution Center provides a more
cost effective operation than dispersed warehousing. The Consolidated POS Aviation Warehouse
and office building are designed to meet many "Green Building" criteria and have incorporated
the following: 
Office day lighting 
Warehouse skylights 
Additional insulation 
Energy efficient lighting and controls 
Materials with low volatile organic compounds 
Water-saving features 
TRIPLE BOTTOM LINE SUMMARY: 
This project provides a cost effective means of providing the benefits of improving spare parts
and materials management for the Airport. Airlines and travelers benefit from efficiency
increases within maintenance operations that support the operational integrity of the Airport.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
February 10, 2010 
Page 6 of 6 
PROJECT SCHEDULE: 
The following is a list of key milestone dates for the project. 
Construction Complete              February 2010 
Beneficial Occupancy               March 2010 
ALTERNATIVES CONSIDERED/RECOMMENDED ACTION: 
Complete the Project  Under this alternative the Consolidated POS Aviation Warehouse will 
open in March 2010 in compliance with the FAA agreement and as part of the long range
strategy for consolidation of the warehousing of Port spare parts inventory. The completion of
this project would provide the necessary facilities to support the long range goal of consolidating
Port spare parts inventory. This is the recommended alternative. 
Do-Nothing  Under this alternative, not approving the additional funding would further delay
the consolidation of the Ports warehousing of spare parts and potentially cause issues with the
Port's current agreement with the FAA to demolish the existing warehouse building and issues
with our water district business partners. This is not the recommended alternative. 
PREVIOUS COMMISSION ACTION: 
On June 27, 2006, the Port Commission granted project wide authorization for the Consolidated
POS Aviation Warehouse and Distribution Center at Seattle Tacoma International Airport for a
total authorized amount of $8,300,000. 
On April 22, 2008, the Port Commission authorized the site location change for the Consolidated
POS Aviation Warehouse and Distribution Center at Seattle Tacoma International Airport for a
total authorized amount of $700,000. 
ATTACHMENTS: 
Highline Water District Developer Extension Agreement.