PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4g 
ACTION ITEM 
Date of Meeting     August 9, 2016 
DATE:    July 26, 2016 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Wayne Grotheer, Director Aviation Project Management Group 
Jeffrey Brown, Director, Aviation Facilities and Capital Programs 
SUBJECT:  Central Terminal Expansion Heating Ventilating and Air-Conditioning Upgrade
Construction Authorization (CIP #C800722) 
Amount of This Request:        $5,498,000   Source of Funds:   Airport Development
Fund, Existing and
Est. Total Project Cost:          $6,612,000 
Future Revenue
Bonds 
Est. State and Local Taxes:        $420,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to (1) advertise and execute a
major construction contract for the Central Terminal Expansion Heating Ventilating and Air-
Conditioning (CTE HVAC) Upgrade Project at Seattle-Tacoma International Airport and (2) use
Port crews and small works contracts to perform construction work. This authorization is for
$5,498,000 for a total project authorization of $6,612,000. 
SYNOPSIS 
This request to move forward with construction follows the Commission's earlier review and
approval of design for HVAC in order to expand dining opportunities on the mezzanine levels
within the central terminal. 
This construction project will install two new air handling units (AHUs) on the roof above the
North and South mezzanine levels of the central terminal. The AHUs would provide HVAC
infrastructure systems to support the development of the mezzanine spaces for use by the
traveling public. Fast growing passenger volumes necessitate development of the mezzanines for
passenger services. The central terminal mezzanine spaces are interior spaces that can be used
for expansion and do not require weather protection. However, they do require added HVAC in
order to be developed for passenger services. This project directly supports Airport Dining and
Retail (ADR) Lease Group #3  authorized by Commission in June 2016. These HVAC
improvements are necessary for the Central Terminal's long-term future and will not be
impacted by future development recommended as part of the Sustainable Airport Master Plan
(SAMP). 

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 26, 2016 
Page 2 of 6 
BACKGROUND 
The CTE project completed in 2005 included mezzanine spaces above the concourse level
restaurants. These mezzanines were intended to be developed when passenger demand supported
their use. A portion of the North mezzanine level is already in use as a prep-kitchen and service
area for Anthony's restaurant. The demand analysis completed as part of the Airport Dining and
Retail master plan forecasts increased passenger demand for food service that cannot be met
without development of these spaces. The existing central terminal AHUs are already operating
at peak capacity and cannot support the mezzanines. Other nearby spaces developed for the
USO, a Starbucks venue, and the US Bank branch similarly needed to create their own HVAC.
This project will provide HVAC for the mezzanines by installing two new AHU's mounted on
the roof, each within its own weather-tight enclosure. The addition of these AHU's will also
improve the emergency smoke evacuation control systems within the central terminal. These
new AHUs will be designed to offset the additional heat generated by passengers, employees and
new equipment in these mezzanine spaces. 
PROJECT JUSTIFICATION AND DETAILS 
Project Objectives 
Provide needed HVAC capacity and smoke control in order to develop central terminal
mezzanine level space to meet passenger demand for additional seating space and food
service.
Scope of Work 
This project will install two new AHU's on the roof of the CTE in support of the planned
expansion of the mezzanine level spaces, provide the associated air distribution, and control
system to support the new dining and retail spaces planned for the mezzanine level of the CTE.
This project will also improve the smoke control in the CTE 
Schedule 
Design Complete                               3rd Quarter 2016 
Advertise for Construction                            4th Quarter 2016 
Substantial Construction Complete                      4th Quarter 2017 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                      $6,589,000      $23,000    $6,612,000 
Previous Authorizations                 $1,114,000          $0    $1,114,000 
Current request for authorization            $5,475,000       $23,000    $5,498,000 
Total Authorizations, including this request     $6,589,000       $23,000    $6,612,000 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost              $6,589,000      $23,000    $6,612,000 

Revised March 28, 2016 

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 26, 2016 
Page 3 of 6 

Project Cost Breakdown                     This Request       Total Project 
Design Phase                                  $0         $1,114,000 
Construction Phase                          $5,078,000         $5,078,000 
State Tax                                   $420,000          $420,000 
Total                                      $5,498,000         $6,612,000 
Budget Status and Source of Funds 
This project, CIP #C800722 was included in the 2016-2020 capital budget and plan of finance
with a budget of $6,589,000. The funding source will be the Airport Development Fund, existing
revenue bonds and future revenue bonds. 
Financial Analysis and Summary 
CIP Category             Renewal and Replacement 
Project Type              Infrastructure Upgrade 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        $6,612,000 
Business Unit (BU)          Terminal Building 
Effect on business performance  NOI after depreciation will increase 
IRR/NPV             N/A 
CPE Impact             $.02 in 2018 
Lifecycle Cost and Savings 
The major assets this project will install are the two air handling units and the associated
electrical and mechanical devices. These assets have useful life spans of 20-30 years. 
STRATEGIES AND OBJECTIVES 
This project promotes the Port's Century Agenda objective of meeting the region's air
transportation needs at the Airport for the next 30 years. This project will ensure that the new
spaces on the mezzanine level of the CTE have proper HVAC and smoke control. These
infrastructure systems are critical to the customer experience here at the Airport. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do not proceed with the project at this time. 
Cost Implications: $842,000 of design effort would need to be expensed. This project is at 100%
design complete. 


Revised March 28, 2016 

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 26, 2016 
Page 4 of 6 
Pros: 
(1) The need to invest in the existing HVAC systems could be deferred if the central terminal 
mezzanine spaces remain undeveloped for public use. 
Cons: 
(1) Increasing passenger demand for food service in the central terminal cannot be met
without expansion into undeveloped space on the mezzanine levels. 
(2) Existing HVAC systems cannot provide an acceptably comfortable environment if
mezzanine level space is developed for public use. 
(3) The traveling public, airlines, tenants and employees may experience discomfort due to
the existing HVAC system's inability to heat and cool parts of the central terminal during
peak summer & winter weather. 
This is not the recommended alternative. 
Alternative 2) - Redesign of the planned use of the mezzanine spaces. 
Cost Implications: $842,000 of design effort would need to be expensed. This projects design is
100% complete. Optional uses for this space are unknown at this time but any occupancy of
these spaces drives the need for HVAC. 
Pros: 
(1) Could eliminate the need for this project if the proposed use of this mezzanine space was
redesigned. 
Cons: 
(1) This could cause significant delays in the program design schedule. 
(2) This would likely cause significant budget increases to the program. 
This is not the recommended alternative. 
Alternative 3)  Upgrade the CTE HVAC system to support the planned expansion of only the
north or south mezzanine spaces of the CTE. 
Cost Implications: $421,000 of design effort would need to be expensed. This projects design is
100% complete. $3,306,000 total estimated project cost 
Pros: 
(1) Requires less capital investment by the Port of Seattle. 
(2) Provides adequate HVAC capacity for the planned expansion of one of the mezzanine
spaces. 
(3) Enables expansion into spaces not currently used. 
(4) The traveling public, airlines, tenants and staff experience and expectations during peak
summer & winter weather will be met in one of these mezzanine spaces given these
improvements to the CTE infrastructure. 
(5) Estimated cost to expand only one of the mezzanine spaces is $3,306,000. 

Revised March 28, 2016 

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 26, 2016 
Page 5 of 6 

Cons: 
(1) This will require detailed design and complex construction in order support the planned
expansion. 
(2) Only using one of the mezzanine spaces will not meet the service demands of the
traveling public, airlines, tenants and staff. 
(3) $421,000 in design costs would need to be expensed. 
This is not the recommended alternative. 
Alternative 4)  Upgrade the six existing AHU's serving the CTE in order to support the
planned expansion of the mezzanine spaces of the CTE 
Cost Implications: $842,000 in design effort would need to be expensed. Estimated $20-$30
million dollars 
Pros: 
(1) This alternative would provide adequate HVAC capacity for the planned expansion of the
mezzanine spaces. 
Cons: 
(1) Requires a capital investment by the Port of Seattle of $20-$30 million dollars (this is
only a conceptual estimate). 
(2) The entire CTE area would need to be closed for 2 years during the construction.
Revenue losses during this closure period have not been estimated. 
(3) $842,000 in design costs would need to be expensed. 
This is not the recommended alternative. 
Alternative 5)  Upgrade the CTE HVAC system to support the planned expansion of the north
and south mezzanine spaces of the CTE. 
Cost Implications: $842,000 has been spent on this design. Construction Cost $5,498,000 
Pros: 
(1) Design for this project is 100% complete. 
(2) This would provide adequate HVAC capacity for the planned expansion of the mezzanine
spaces. 
(3) Enables the expansion of CTE ADR Lease Group #3 facilities into spaces not currently
being used. 
(4) The traveling public, airlines, tenants and staff experience and expectations during peak
summer & winter weather will be met given these improvements  to the CTE
infrastructure. 
Cons: 
(1) Requires a capital investment by the Port of Seattle. 

Revised March 28, 2016 

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 26, 2016 
Page 6 of 6 
(2) This will require complex construction in order to support the planned expansion. 
(3) Estimated cost to design and construct this project is $6,612,300. 
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
CTE HVAC Upgrade Presentation 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
May 26, 2015    the Port Commission authorized the design and construction
documents for the Central Terminal HVAC Upgrade project. 
October 28, 2014   Authorization for Airport Dining and Retail Infrastructure
Modifications (CIP #C800638) 
June 25, 2013  Authorization for United Services Organization Northwest Lease and
Associated Second Floor Utilities Preparations (CIP #C800615) 
January 22, 2008  Authorization for the upgrade of the heating, ventilation, and airconditioning
(HVAC) system to the north side of the second floor of the Main Terminal
Administration Building/CTE (CIP #C800249) 










Revised March 28, 2016