PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4h 
ACTION ITEM 
Date of Meeting      July 12, 2016 
DATE:    July 5, 2016 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Wayne Grotheer, Director, Aviation Project Management Group 
James Schone, Director, Aviation Business Development 
SUBJECT:  Central Terminal Mezzanine to Ticketing Stair Project (CIP #C800716) 
Amount of This Request:        $2,049,000   Source of Funds:   Airport Development
Fund 
Est. Total Project Cost:          $2,560,000 
Est. State and Local Taxes:        $125,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to advertise for bids and
execute a major construction contract for the Central Terminal Stairs project at Seattle-Tacoma
International Airport for $2,049,000 of a total estimated project cost of $2,560,000. 
SYNOPSIS 
This project will build two stairways near the central checkpoint to provide egress capacity from
the mezzanine level of the Airport in order to occupy portions of the building that cannot be used
until fire life-safety issues are resolved. Gaining additional occupiable assembly and office space
within the limited footprint terminal is valuable to both airlines and traveler services. The
stairways and fire sprinklers increase safety and accessibility for airport users. This project was
authorized for design in October 2015.  Design is  complete  and the project is ready  for
construction so that the vacant spaces on the mezzanine will be usable. 
BACKGROUND 
The growth in operations and passengers at the Airport, and the related increase in support space
needed by the Port's airline partners, has led to greater levels of occupancy on the mezzanine
above the ticketing and checkpoint area. The occupancy levels have now reached a point where
if the Port wishes to make use of any vacant space on the mezzanine level, egress stairways and
fire sprinklers must be installed in the central area of the terminal building. There are
approximately 10,000 square feet of office space on the mezzanine level that are now vacant. 
The Airport main terminal building opened in the 1970s without a comprehensive fire sprinkler
system. This met the provisions of the Uniform Building Code that was in force when it was
designed and built. Today, the International Building Code (IBC) recognizes the benefits of a

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 2 of 7 
building fire sprinkler system by allowing longer and narrower egress pathways for buildings
that have them installed. In order for the mezzanine stairs to qualify as egress pathways for the
full use of the mezzanine, fire sprinklers must be installed. 
This project is located in a portion of the existing terminal building which is anticipated would
not be affected by future decisions related to the Sustainable Airport Master Plan.
Upon project completion, lease revenue is anticipated at $770,000 in 2017, increasing to an
estimated $1,594,000 in 2018. 
PROJECT JUSTIFICATION AND DETAILS 
Airport staff is managing an increasingly scarce resource of available office space in the main
terminal largely due to continued growth in demand from airlines operating at the Airport. When
complete this project will make 10,000 square feet of currently un-leasable space usable. 
It should be noted that in addition to providing sprinklers that will benefit the two stairs and their
associated egress pathways, the fire sprinklers will benefit the Baggage Optimization project
which will be able to use an egress pathway nearby once the fire sprinklers are installed. 
Project Objectives 
This project will provide additional egress capacity in the form of two stairs from the mezzanine
level of the Airport. 
This project will provide fire sprinklers to assist in meeting building code requirements for the
area. 
Stairs will improve public access to services on the mezzanine including the USO, Lost and
Found and the Airport Credential Center. 
Construction will impact airport operations near the central checkpoint. Steps taken to mitigate
this impact include: 
Limiting construction to evening-overnight hours. 
Closing Checkpoint 3 during low passenger times in winter and moving operations to
Checkpoints 2 and 5 during construction hours only. Checkpoint 3 will be operational
during the day. 
Using personnel lifts rather than scaffolding for construction near the checkpoint queuing
areas will reduce the impact to the queuing during the day. 
Scope of Work 
Construct two stairways from the mezzanine level of the Airport to the ticketing level at the
central breezeway between the ticket lobby and the security checkpoint. The scope includes: way
finding signage, spot abatement of regulated materials, and modifications to the lighting and fire
sprinkler systems. 

Revised March 28, 2016 

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 3 of 7 
Schedule 
Issue Notice to Proceed                                   4th Quarter 2016 
Construction complete                                  2nd Quarter 2017 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                      $1,250,000          $0    $1,250,000 
Previous budget increase                  $967,000     $343,000    $1,310,000 
Revised Budget                     $2,217,000     $343,000    $2,560,000 
Previous Authorizations                  $511,000          $0     $511,000 
Current request for authorization            $1,706,000      $343,000    $2,049,000 
Total Authorizations, including this request     $2,217,000      $343,000    $2,560,000 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost              $2,217,000     $343,000    $2,560,000 
Project Cost Breakdown                     This Request       Total Project 
Design Phase                                  $0          $511,000 
Construction Phase                          $1,924,000         $1,924,000 
Sales Tax                                  $125,000          $125,000 
Total                                      $2,049,000         $2,560,000 
Budget Status and Source of Funds 
This project (CIP #C800716) was included in the 2016  2020 capital budget and plan of finance
as a business plan prospective project with a budget of $1.25 million. The budget increase was
due to the need for additional fire sprinklers (which were previously not in scope and are a
requirement of the building code) and regulated materials abatement. The capital budget increase
was transferred from the aeronautical allowance CIP (C800404) so that there was no change to
the overall capital budget. The funding source will be the Airport Development Fund. 
The expense portion of the project cost includes $343,000 estimate for asbestos removal. This
was included in the 2016 operating budget. 
Financial Analysis and Summary 
CIP Category             Renewal and Enhancement 
Project Type              Infrastructure upgrades 
Risk adjusted discount rate     8% 
Key risk factors             Demand for additional terminal space 
Project cost for analysis        $2,560,000 
Business Unit (BU)          Terminal 

Revised March 28, 2016 

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 4 of 7 
Effect on business performance  Although there are no current commitments to lease this
space, the financial analysis estimates lease payments to
begin in 2017 at $770,750 for 5,000 square feet, and
increase to $1,593,850 for 10,000 square feet in 2018, and
then subject to adjustment along with other terminal rental
rates thereafter. 
IRR/NPV             5-year analysis (assumes leases with 4 tenants): 
NPV: $2.9 million 
IRR: 34.0% 
Payback: 2 years 
30-year analysis (based on probable asset life, continued
split of 5,000 square feet aeronautical, 5,000 square feet
non-aeronautical tenant mix): 
NPV: $17.8 million 
IRR: 46.2% 
Assumptions: 
-Aviation Finance and Budget projects a lease rate of
$171.45 per square foot per year in 2017, which increases
to $235.64 in 2024 and then is held flat thereafter for
aeronautical space 
- Aviation Finance and Budget projects a lease rate of
$136.85 per square foot per year in 2017, which increases
to $190.11 in 2024 and then is held flat thereafter for nonaeronautical
space 
-2,500 square feet leased to an aeronautical tenant and
2,500 square feet leased to a non-aeronautical tenant for
each of 2017 and 2018. 
-Each build-out incurs approximately $189,216 of costs
that are eligible for reimbursement under the Port's AV-2
Tenant Reimbursement Policy (though funds for these
potential reimbursements are not part of this authorization
request). 




Revised March 28, 2016 

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 5 of 7 
Looking at the airport impacts after accounting for the
lease payments through the airline agreement, 77% of the
capital costs are recovered through airline rates and
charges. The non-aeronautical business is allocated 23%
of the capital costs. Looking at the net impact on the nonaeronautical
side, the capital investment is approximately
$510,000 (23%), and the potential annual lease revenue
exceeds $685,000 per year, for a short payback and a very
favorable NPV. 
CPE Impact             $.03 in 2016 due to O&M costs, then $.01 annually
beginning in 2017. 
Lifecycle Cost and Savings 
Aviation Maintenance may experience some additional operating and maintenance costs related
to the stairs though they are not anticipated to be significant and should be able to be absorbed
with current resources. There will be no impact as a result of the additional scope related to
adding fire sprinklers.
STRATEGIES AND OBJECTIVES 
This project supports the Port's Century Agenda objective of meeting the region's air
transportation needs at the Airport for the next 25 years and encouraging the cost-effective
expansion of domestic and international passenger and cargo service. The Airport must meet the
business needs of tenants by providing office space to support their operations. 
This project supports the Aviation Division's Strategy of operating a world class international
airport by ensuring safe egress routes for those using the mezzanine facilities and meeting the
needs of our tenants and the region's economy. 
This project is collaborating with the Economic Development Division's Small Business Team 
to maximize small business participation throughout construction. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Status Quo  Do not proceed with the CT Stairs project. 
Cost Implications: $350,000. The project costs expended during design would be expensed. 
Pros: 
(1)  No construction activity is required. Not performing this work eliminates any
associated operational impacts during construction. 
(2)  Not performing this work would eliminate the requirement to go through major
works contract procurement. 
(3)  Less capital expenditure will be required, freeing up capital funds for other projects. 

Revised March 28, 2016 

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 6 of 7 
Cons: 
(1)  Would not solve egress capacity limits in the central main terminal space or
incrementally improve fire sprinkler coverage. 
(2)  Would still leave unusable/un-leasable space in the valuable central area of the
Terminal. 
(3)  Would not provide added easy access benefit for passenger use for pre-security
access to Lost and Found, Credential Center, and USO on the mezzanine level. 
This is not the recommended alternative. 
Alternative 2  Delay the project for one year. 
Cost Implications: $770,000 in lost revenue for 2017 (rough order of magnitude) 
Pros: 
(1)  Preserves the full open architecture of the Airport's Central Checkpoint for an
additional year. 
(2)  Has no effect on queuing during construction. 
Cons: 
(1)  Does not provide needed square footage for additional tenant office needs for an
additional year. 
(2)  Steel costs could escalate increasing the cost of this project. 
This is not the recommended alternative. 
Alternative 3  Proceed with the project as designed. 
Cost Implications: $2,560,000 
Pros: 
(1)  Would solve  egress capacity limits and incrementally improve fire sprinkler
coverage in the central main terminal. 
(2)  Would provide added passenger and employee customer service benefit through
improved vertical access to Lost and Found, Credential Center, USO, and Central
Auditorium. 
(3)  Provides egress capacity for other projects, such as the Baggage Optimization
project. 
Cons: 
(1)  Slightly lessens the full open architecture of the central breezeway. 
(2)  Requires the relocation of the movable (portable) art display cases. 
This is the recommended alternative. 

Revised March 28, 2016 

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 7 of 7 
ATTACHMENTS TO THIS REQUEST 
Exhibit A: Floor plan illustrating new stairs and adjacent space utilization as well as an
artist rendering of the staircases. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
October 27, 2015  Authorization to prepare design and construction bid documents. 















Revised March 28, 2016