PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6b 
ACTION ITEM 
Date of Meeting     August 4, 2015 
DATE:    July 27, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Dave Soike, Director, Aviation Facilities and Capital Programs 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  Utility Emergency Backup/Standby Power Project (CIP #C800538) 
Amount of This Request:       $36,998,308   Source of Funds:   Airport Development 
Fund and 2015
Est. Total Project Cost:         $37,200,000 
revenue bonds 
Est. State and Local Taxes:       $2,810,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to: (1) develop, advertise, and
execute a Public Works Building Engineering Systems Contract for the Utility Emergency
Backup/Standby Power Facility Project with a total project cost estimated at $37,200,000; and
(2) authorize the use of Port crews for preliminary work in support of the project. 
SYNOPSIS 
The project will provide an enclosed, dual fuel standby power facility that is functionally
complete, fully integrated, and capable of supplying 25 megawatts (MW) of power.  This
wattage is  100  percent  of the Airport's peak electrical demand over the existing  power
distribution system.  Upon the unexpected loss of normal utility power, the standby power
facility will provide stable backup power to the Airport within five minutes. The standby power
facility will have sufficient fuel storage capacity to operate the Airport continuously for up to 24
hours with ability to use aviation fuel as a backup source should diesel fuel become unavailable.
The total value of this request is $36,998,308 of an estimated total project cost of $37,200,000.
This improvement will not be impacted by future development recommended as part of the
Sustainable Airport Master Plan (SAMP). 
BACKGROUND 
Almost all functions at the Airport rely on electricity. The Airport currently has back-up power
only for life/safety functions, which is three (3) megawatts or ten percent of the Airport's
electrical demand. These functions are primarily based on passenger egress requirements or
getting passengers and staff out of the Airport safely. During an extended electrical power
outage, the Airport will not be able to operate. 

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 27, 2015 
Page 2 of 6 
The Airport has had experiences with power outages and has taken past actions to mitigate such
threats to operations. In 2009 and 2010, the Airport was faced with the prospect of a long-term
area power outage that might result from the failure of the Howard Hansen Dam. With support
from tenants and airlines, the Airport spent $3.5 million to rent and install 18 MW of temporary
backup generators at that time. The generators were returned when the risk from the dam failure
was mitigated. In 2008, a car accident caused the Airport's south main substation to lose power
for several hours. In 2006, a windstorm knocked out power to the region and portions of the
Airport. 
This project was submitted to the airlines for a majority-in-interest vote.  The project was
approved. 
PROJECT JUSTIFICATION AND DETAILS 
During a utility power outage, the Airport is unable to operate normally.  An extended loss of
utility power at the Airport impedes the Port's, airlines' and tenants' ability to utilize the Airport. 
Loss of electrical power shuts down airline and concession electronic communications, jet bridge
operations, flight information displays, ticket printers, security checkpoints, electric ground
support equipment (eGSE) chargers, baggage conveyors, lighting for legal occupancy within the 
terminal, heating/cooling systems, and other functions. The continued reliable operation of Sea-
Tac Airport is vital to meeting the needs of the region and the airlines. This project will provide
the Airport with a permanent standby power source and enable the continued operation of Sea-
Tac Airport during a short or long-term power outage event. 
Project Objectives 
Provide 25 megawatts of stable power to Sea-Tac Airport within five minutes 
System able to expand as Airport demands grow
System to run continuously for up to 24 hours without refueling
System to be able to run on multiple fuel types
When conditions dictate (e.g. major storm approaching, dam bursting), the ability to
isolate the Airport utility from the Puget Sound Energy electrical grid so that the Airport
is not affected by regional electrical outages
Scope of Work 
This project will provide a complete, useable, and fully integrated standby power facility capable
of supplying 25 megawatts of power to the Airport. 
The standby power facility will be sited on Port property next to the Port's South Main
Substation and Puget Sound Energy's Sea-Tac substation (see Attachment A  site vicinity map). 
This is an ideal location due to the proximity of existing electrical infrastructure that minimizes 
the cost and complexity of power distribution to aviation facilities.  The project has been
coordinated with the Construction Logistics Expansion Project.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 27, 2015 
Page 3 of 6 
All generators or generation equipment will be installed in a weather-tight building or structures
of suitable size and design capable of expanding to house an additional generator. Any
contaminated soil disturbed or removed shall be abated, appropriately handled, and properly
disposed of. Fuel storage and associated piping will be above ground with appropriate
containment and monitoring systems for compliance with State and Federal regulatory
requirements.
Preliminary work includes actives such as site investigation, electrical room "escorting",
remediation efforts, limited fiber optic cable installation or other ancillary activities to support
the project.
Procurement method 
The Standby Power Facility will be competitively procured as a Public Works building
engineering system contract. Per RCW 39.04.290, the Port may award contracts of any value for
the design, fabrication, and installation of building engineering systems by using a competitive
process where bidders are required to provide final specifications and a bid price for the design,
fabrication, and installation of building engineering systems, with the final specifications being
approved by an appropriate design, engineering, and/or public regulatory body.  The 
procurement strategy was chosen because an industry standard turnkey solution is available and
a large percentage of the cost is equipment.
Schedule 
Commission Authorization for Procurement:                   3rd Quarter 2015 
Award Contract                                    2nd Quarter 2016 
Issue Notice to Proceed:                                  3rd Quarter 2016 
Construction Complete:                                3rd Quarter 2017 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                     $36,400,000     $800,000   $37,200,000 
Previous Authorizations                  $201,692          $0     $201,692 
Current request for authorization            $36,198,308      $800,000    $36,998,308 
Total Authorizations, including this request    $36,400,000      $800,000    $37,200,000 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost             $36,400,000     $800,000   $37,200,000 
Project Cost Breakdown                     This Request       Total Project 
Procurement/Construction                    $33,388,308        $33,590,000 
Soil Abatement                             $800,000          $800,000 
Sales Tax                                 $2,810,000         $2,810,000 
Total                                     $36,998,308         $37,200,000

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 27, 2015 
Page 4 of 6 
Budget Status and Source of Funds 
This project, C800538, was included in the 2015-2019 capital budget and plan of finance. The
funding sources will include the Airport Development Fund and 2015 revenue bonds. This
project will be incorporated into the Airport's electrical utility, so both capital and operating
costs will be recovered through an internal utility charge allocated to the terminal. The costs
therefore show up as operating costs.
Financial Analysis and Summary 
CIP Category             Renewal/Replacement 
Project Type              Infrastructure Upgrade 
Risk adjusted discount rate     N/A 
Key risk factors 
Project cost for analysis        $37,200,000 
Business Unit (BU)          Electric Utility (allocate to Terminal Building) 
Effect on business performance  NOI after depreciation will increase 
IRR/NPV             N/A 
CPE Impact             0.08 in 2017 
Lifecycle Cost and Savings 
The design life of the project is 30 years or more. Operations and Maintenance (O&M) costs of
the recommended alternative will be approximately $125,000/year to include: periodic
maintenance, testing, air permitting requirements, fuel, and training. It is anticipated that the
system will need to be run once a week or 50 hours a year for maintenance and testing purposes. 
STRATEGIES AND OBJECTIVES 
The project supports the Port's Century Agenda objective of meeting the  region's air
transportation needs at Sea-Tac International Airport for the next 25 years by improving
electrical reliability for continuous Airport operations.
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Maintain the status quo. 
Capital Cost $0 
This is not the recommended alternative.
Pros: 
No capital investment 
Cons: 
The Airport's operations continue to be subject to an electrical outage risk. Each hour of
an electrical outage incurs significant costs to the airlines. In the last major outage, The

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 27, 2015 
Page 5 of 6 
Alaska Airlines Group lost their main computer network,  which  grounded flights
nationwide. The airlines support going ahead with the project.
Waiting for an extended outage to occur, and then trying to find and rent and temporarily
install diesel backup generators will take time. The option is slow to implement as
evidenced by earlier experience with flood risk from the Howard Hansen Dam. The
regional power transmission systems feeding the Airport would have been flooded. It
took over six months to set up the temporary system. In a regional power outage, the Port
will be in competition for generator resources. 
Alternative 2)  Install a new combined heat and power facility. 
Capital Cost $56+M 
O&M Cost $2.2M/year 
This is not the recommended alternative. 
This alternative would install a Gas Turbine Generator and associated infrastructure upgrades to
provide both electricity and heat to the Airport.
Pros: 
The Airport electrical utility would be able to operate independently of outside power
suppliers.
Heat can be recovered from the electrical generation process to heat the Airport. 
Cons: 
This project would double electrical costs for the Airport's Electric Utility customers. 
The option would not utilize the Port's contract for low-cost hydroelectric power from
the Bonneville Power Administration.
A continuously operating gas turbine would subject the Port to more stringent
environmental regulations and oversight. 
Alternative 3)  Install centralized dual fuel generators 
Capital Cost $37.2M 
O&M cost $125,000/year 
This alternative provides a centralized Standby Power Facility capable of supplying 25
megawatts of power over the existing Airport distribution system. This is the recommended
alternative. 
Pros: 
The Standby Power Facility project will protect the Airport from an electrical outage and
enable continuity of airport and airline operations.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 27, 2015 
Page 6 of 6 
Industry standard fully equipped backup power facilities are available on the
marketplace.
The dual fuel generators will normally run on diesel fuel but in an emergency may be
fueled by Jet-A fuel. 
Cons: 
The system will need to be monitored to ensure compliance with Airport's environmental
operating permits. 
ATTACHMENTS TO THIS REQUEST 
Attachment A  Site Vicinity Map 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
December 9, 2014  Presentation to Commission.