COMMISSION 
AGENDA MEMORANDUM                        Item No.          8e 
ACTION ITEM                            Date of Meeting      October 22, 2019 
DATE:     October 14, 2019 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Wayne Grotheer, Director, Aviation Project Management Group 
Jeffrey Brown, Director, Aviation Facilities and Capital Programs 
SUBJECT:  North Terminals Utilities Upgrade Project (#C800717) Phase 1 Construction
Authorization. 
Amount of this request:              $12,064,000 
Total estimated project cost:          $40,000,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to (1) advertise and award a
construction contract for Phase 1 of the North Terminals Utilities Upgrade project at Seattle-
Tacoma International Airport; (2) employ a project labor agreement (PLA);. The amount of this
request is $12,064,000. The total estimated Phase 1 and Phase 2 project cost is $40,000,000.
EXECUTIVE SUMMARY 
This project will replace and extend the existing 45-year-old undersized steam, condensate and
chilled water supply and return piping from the Central Mechanical  Plant  and  create a
redundant interconnected piping loop in two phases.
Phase 1 will provide new upsized piping from the Central Mechanical Plant to points of
connection for the Concourse D Annex and North Satellite. Phase 1 work is time critical as it is
required for the planned 2021 opening of the newly renovated North Satellite.
Phase 2 will provide a fully redundant loop system that will enable any part of the airport
terminal to operate Heating, Ventilation, and Air Conditioning (HVAC) systems while being
supplied from the south or north steam, condensate, chilled water supply and return piping.
This level of redundancy currently exists for Concourse A, B, and the South Satellite.
Completing this project will enable airport wide HVAC system redundancy for all concourses
and satellites. 
The full project scope cannot be completed for the previously estimated amount of
$21,335,000. 

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. _8e___                              Page 2 of 6 
Meeting Date: October 22, 2019 
This authorization is for Phase 1 construction only. The project team will return to Commission
for Phase 2 construction authorization at a later date.

JUSTIFICATION 
The existing steam, condensate, and chilled water supply and return piping are undersized for
current and future projected system loads. The project is required to supply adequate heating
and cooling to the Terminal building and North Satellite. The NorthSTAR Program is currently
under construction and requires the completion of this work to support the operational
readiness of Phase 2 of the NorthSTAR Program by summer 2021. 
Diversity in Contracting 
The project manager is working with the Diversity in Contracting Department to determine
participation opportunities and set goals for women and minority business enterprises (WMBE)
attainment. 
DETAILS 
The existing steam, condensate, and chilled water supply and return piping are undersized for
current and future projected system loads. The project is required to supply adequate heating
and cooling infrastructure to the Terminal building and North Satellite. The project is planned to
be implemented in two phases.
The Commission authorized the full project scope on June 28, 2016. Since this time the project
team has prioritized the approved scope into two phases. Phase 1 will provide capacity
improvements to support the Terminal building and North Satellite in support of the NorthSTAR 
Program. New piping will be installed from the Central Mechanical Plant to the new valve room
located north of the Main Terminal building, and from the valve room to the existing Concourse
D Annex and North Satellite connections. Phase 2 will provide capacity improvements to
support Concourses C and D and complete the interconnected loop system making the system
fully redundant. The Phase 2 scope of work requires close coordination with the baggage
optimization program, airline baggage operations, and will require additional design analysis.
Phase 2 of this project is significantly more complex in design and construction than Phase 1
and will require much more coordination construction effort. 
The scope and complexity of this project has increased significantly since it was originally
presented to Commission in 2016. The new Concourse D Annex and Baggage Optimization 
projects have imposed substantial cost and schedule impacts. To accommodate the Concourse
D Annex facility, the project will need to build a new valve room. This new valve room will 
displace existing facilities that must also be relocated. The technical difficulties and
complexities of working in and around assets installed by the Baggage Optimization project
were also not properly accounted for in the early construction estimate. Finally, this project has
faced costly challenges associated with maintaining full airport operations during construction. 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. _8e___                              Page 3 of 6 
Meeting Date: October 22, 2019 

Scope of Work 
Phase 1 - Install new upsized chilled water, steam and condensate piping from the Central
Mechanical Plant to a new valve room located in the north ground transportation lot adjacent
to the D Annex sloped walkway and from the valve room as far as the North Satellite tunnel
connection. This will provide the required infrastructure for the HVAC system for the North
Terminal building and the North Satellite. 

Phase 2 - Install steam, condensate, and chilled water supply and return piping from the Central
Terminal baggage level connection point to the new valve room building that will be in the north
east corner of the north GT lot east of the D Concourse Annex sloped walkway. Provide a fully
redundant loop system. Enable any part of the airport terminal to operate HVAC systems while
being supplied from the south or north steam, condensate, chilled water supply and return
piping. This level of redundancy currently exists for Concourse A, B, and the South Satellite.
Completing this project will enable airport wide HVAC system redundancy for all concourses and
satellites. 
Schedule 
Construction start                                1st Quarter 2020 
In-use date (phase 1)                             2nd Quarter 2021 
In-use date (phase 2)                             3rd Quarter 2023 

Cost Breakdown                                     This Request           Total Project 
Design Phase                                           $3,427,000             $7,039,000 
Construction Phase                                      $8,637,000           $32,961,000 
Total                                                        $12,064,000             $40,000,000 

ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Proceed with Phase 1 only - replace and upsize the existing 50-year-old HVAC
piping. Do not proceed with installing a redundant interconnected loop. 
Cost Implications: $21,335,000 (approximately $1,600,000 in design funds associated with
Phase 2 work will need to be expensed.) 
Pros: 
(1)   North Satellite will have the utilities required for opening and operation as identified
in the NorthSTAR Program basis of design. 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. _8e___                              Page 4 of 6 
Meeting Date: October 22, 2019 
Cons: 
(1)   Does not provide capacity improvements to Concourses C and D. 
(2)   Does  not  create  a  fully  redundant  interconnected  chilled  water,  steam  and
condensate piping system. 
This is not the recommended alternative. 
Alternative 2  Proceed with Phase 1 and defer Phase 2 to a future Capital Improvement
Project.
Cost Implications: $44,925,000 (Phase 1, $21,335,000 - Phase 2, $23,590,000) 
Pros: 
(1)   North Satellite will have the utilities required for opening and operation as identified
in the NorthSTAR Program basis of design. 
(2)   Improves system reliability by creating a fully redundant interconnected chilled water,
steam and condensate piping system. 
(3)   Improves maintainability of system by allowing maintenance bypass. 
Cons: 
(1)   Largest Capital investment.
(2)   Current design work related to Phase 2 may need to be expensed. 
(3)   Benefit of capacity improvements to support Concourse C and D are not realized until
a future date. 
(4)   Benefit of redundant loop is not realized until future date. 
This is the not recommended alternative. 
Alternative 3  Proceed with full project scope (Phase 1 and Phase 2). Phase 1 (urgent work)
will replace and upsize the existing 50-year-old HVAC piping.  Phase 2 will install a redundant
interconnected loop.
Cost Implications: $40,000,000 
Pros: 
(1)   North Satellite will have the utilities required for opening and operation as identified
in the NorthSTAR Program basis of design. 
(2)   Provides the capacity improvements to support Concourses C and D, and the North
Satellite. 
(3)   Improves system reliability by creating a fully redundant interconnected chilled water,
steam and condensate piping system. 
(4)   Improves maintainability of system by allowing maintenance bypass. 
Cons: 
(1) Requires a substantial capital and expense investment. 
This is the recommended alternative. 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. _8e___                              Page 5 of 6 
Meeting Date: October 22, 2019 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary               Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                $11,950,000         $50,000     $12,000,000 
Previous changes  net                          $8,349,000        $986,000      $9,335,000 
Current change                               $18,665,000              $0    $18,665,000 
Revised estimate                              $38,964,000      $1,036,000    $40,000,000 
AUTHORIZATION 
Previous authorizations                          $9,036,000        $235,000      $9,271,000 
Current request for authorization               $12,033,000         $31,000     $12,064,000 
Total authorizations, including this request      $21,069,000        $266,000     $21,335,000 
Remaining amount to be authorized           $17,895,000       $770,000    $18,665,000 
Annual Budget Status and Source of Funds 
The North Terminals Utilities Upgrade Project (#C800717) was included in the 2019-2023
capital budget and plan a finance with a budget of $20,299,000. The cost increase is related to
constructability and operational challenges that were significantly underrepresented in the predesign
cost estimate. The budget increase will be transferred from the Aeronautical Reserve CIP
(C800753) resulting in no net change to the Aviation Division capital plan. The funding source
would be the Airport Development Fund and future revenue bonds. 
Financial Analysis and Summary 
Project cost for analysis              $40,000,000 
Business Unit (BU)                  Terminal Building 
Effect on business performance     NOI after depreciation will increase 
(NOI after depreciation) 
IRR/NPV (if relevant)                N/A 
CPE Impact                       $.13 by 2023 
Future Revenues and Expenses (Total cost of ownership) 
A steam, condensate and chilled water supply and return piping systems have an expected life
cycle of 25-30 years. The technology and insulation materials designed into this project will
extend the life cycle to 40-50 years.
ADDITIONAL BACKGROUND 
This project was originally proposed as part of the Year 2000 Mechanical Systems Master Plan
but was deferred due to the elimination of the North End Air Terminal (NEAT) program.


Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. _8e___                              Page 6 of 6 
Meeting Date: October 22, 2019 
ATTACHMENTS TO THIS REQUEST 
(1)   PowerPoint slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
September 12, 2017  The Commission authorized the Executive Director to extend the 
North Terminals Utilities Upgrade Project major construction contract for the Early Work
Mechanical Contract by adding 250 days to the contract duration. 
June 28, 2016  The Commission authorized the Chief Executive Officer to increase the
North Terminals Utilities Upgrade Project scope, budget, authorization, utilize Port crew
advertise and award a major construction contract for the Early Work Mechanical Contract 
for an additional $7,271,000. 
April 28, 2015  The Commission authorized the Chief Executive Officer to execute service
agreements and conduct studies, cost estimates, design and prepare construction
documents for the North Terminals Utilities Upgrade Project in the amount of $2,000,000. 











Template revised June 27, 2019 (Diversity in Contracting).