PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4g 
ACTION ITEM 
Date of Meeting     April 28, 2015 
DATE:    April 21, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Dave Soike, Director, Aviation Facilities and Capital Program 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  North Terminals Utilities Upgrade project (CIP #C800717) 
Amount of This Request:        $2,000,000   Source of Funds:   Airport Development
Fund 
Est. Total Project Cost:          $9,950,000 
Est. State and Local Taxes:        $665,000 
ACTION REQUESTED 
Request Commission authorization for 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 at Seattle-Tacoma International Airport. This
request is for $2.0 million of an estimated total project cost of $9.95 million. 
SYNOPSIS 
This project will augment the aging infrastructure piping that supplies the steam, condensate, and
chilled water that support parts of Concourse C, Concourse D, and the North Satellite. The
majority of the existing piping is 45 years old, well past its useful life, and is undersized to 
adequately support the North Satellite, and Concourses C and D. 
This project was included in the 2015  2019 capital budget with an estimated cost of $11.95
million. As originally conceived, the project scope also included the creation of a loop to add
redundancy. Due to a significant increase in the estimated cost (up to $16 million), the project as
now proposed eliminates the creation of the loop, and consequently the estimated cost has been
reduced to $9.95 million. During design, if it becomes apparent that the loop could be
implemented in a cost effective manner with demonstrated corresponding benefits, staff may
propose adding back the scope associated with the loop. Further details on these two alternatives
are included in the back of the memo (see Alternatives 3 and 4). 



Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
April 21, 2015 
Page 2 of 6 
BACKGROUND 
The Central Mechanical Plant has the capacity to support Concourses C and D and the expansion
of the North Satellite, however the current piping infrastructure is aging and too small to
adequately supply these areas.  The existing piping is undersized, which means the system
cannot properly heat or cool the ends of Concourses C and D on the hottest and coldest days. The
heating cooling systems on Concourses C and D will be improved by the larger pipes that will be
installed as part of this project, which will improve the customer comfort and experience. 
Additionally, the current chilled water supply and condensate return piping is not sufficient to
meet the demands of the expanded North Satellite. This project will increase the size of multiple
pipes feeding Concourses C and D and the North Satellite.  For example existing steam pipes
will be increased from 8 inch to 12 inch diameter, while chilled water pipes will be increased
from 12 inch to 24 inch diameter.
The design for this project will evaluate two possible routes that if combined would create a loop
on the North end of the terminal. The original project budget and scope included construction of
both routes, however this project has been reduced to only include the "must have and must do"
infrastructure improvements.  These pipes must transverse constrained spaces, and it is not
possible to know which of the routes will be the easiest to construct prior to design. The most
cost effective route will be constructed. This project will be coordinated with the baggage
handling  systems  program,  the  NorthSTAR  Program,  and  the  Service  Tunnel
Renewal/Replacement Project. 
PROJECT JUSTIFICATION AND DETAILS 
Project Objectives 
Upsize the existing steam, condensate, and chilled water supply piping from the Central
Terminal Mechanical Room to Mechanical Room Four in support of  Concourses C and D and
the North Satellite. 
Scope of Work 
This project will authorize a design firm to conduct detailed studies and analysis of the existing
systems to determine the best design and most cost effective method to upsize the steam,
condensate and chilled water supply system from the Central Terminal Mechanical Room to
Mechanical Room Four and beyond in support of Concourses C and D and the North Satellite. 
The firm will design each of the possible routes which in combination would complete the north
loop. One of the two legs would be selected for construction under this project and the other leg
may be considered to be part of a potential near-termproject or an addition to this project (a 
determination cannot be made until design is underway). 
Schedule 
Start Design                                           3rd quarter 2015 
Complete Design                                   3rd quarter 2016 
Commission Authorization for Construction                    4th quarter 2016

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
April 21, 2015 
Page 3 of 6 
Advertise for Construction                                1st quarter 2017 
Substantial Construction Complete                          1st quarter 2018 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                     $11,950,000          $0   $11,950,000 
Budget Increase/(Decrease)              ($2,950,000)     $950,000   ($2,000,000) 
Revised Budget                     $9,000,000     $950,000    $9,950,000 
Previous Authorizations                   $40,000          $0      $40,000 
Current request for authorization            $1,960,000          $0    $1,960,000 
Total Authorizations, including this request     $2,000,000          $0    $2,000,000 
Remaining budget to be authorized         $7,000,000     $950,000    $7,950,000 
Total Estimated Project Cost              $9,000,000     $950,000    $9,950,000 

Project Cost Breakdown                     This Request       Total Project 
Design                                  $2,000,000         $2,000,000 
Construction                                    $0         $7,285,000 
Sales Tax                                      $0          $665,000 
Total                                      $2,000,000         $9,950,000 
Budget Status and Source of Funds 
This project, C800717, was included in the 2015-2019 capital budget and plan of finance at an
estimated cost of $11,950,000. A capital budget decrease of $2,950,000 was transferred to the
Aeronautical Allowance CIP, resulting in no net change to the Airport capital budget. The
funding source for this project will be the Airport Development Fund and revenue bonds to be
issued in 2015. 
Financial Analysis and Summary 
CIP Category             Renewal/Enhancement 
Project Type              Renewal/Enhancement 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        $9,950,000 
Business Unit (BU)          Terminal 
Effect on business performance  NOI after depreciation will increase 
IRR/NPV             N/A 
CPE Impact             $.03 increase in 2018

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
April 21, 2015 
Page 4 of 6 
Lifecycle Cost and Savings 
The major assets this project will install are steam, condensate and chilled water piping, valves
and connections. All of these assets have useful life spans of 25-30 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 utilities
to the North Satellite have the capacity needed, and improve the customer experience in
Concourses C and D. These infrastructure systems are critical to the customer experience at the
Airport. 
TRIPLE BOTTOM LINE 
Economic Development 
This project supports the Airport's initiative to provide efficient infrastructure systems. The
Central Mechanical Plant has the capacity to support the  C and  D Concourses and the 
NorthSTAR programs planned expansion of the North Satellite. 
Environmental Responsibility 
These new systems will plan for and utilize components with long life expectancies of 25-30 
years or longer.
Community Benefits 
This project supports the Airport's strategy to operate a world class international airport by
anticipating and meeting the needs of our tenants, passenger and the region's economy. Making
new operational improvements with up-to date equipment and technology helps to minimize 
system outages (planned and unplanned) and long term costs to the airlines, thereby supporting
the Airports strategy to reduce airline costs. 
This program will collaborate with the Office of Social Responsibility (OSR) to maximize small
business participation throughout the design and later the construction of this project. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1) - Maintain Status Quo. Do not augment the steam, condensate, and chilled water
pipes at the North End of the Airport. 
Pros: 
Save capital spending. 
Cons: 
Chilled water infrastructure does not support any planned expansion of the North Satellite
footprint and steam and condensate systems do not support the ultimate North Satellite
expansion plans.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
April 21, 2015 
Page 5 of 6 
The traveling public, airlines and tenants' experience and expectations during peak
summer and winter weather will not be met with the existing infrastructure on the C and 
D Concourses and North Satellite increased footprint and traffic. 
A majority of the existing piping system that feeds the north end is over 45 years old and
is approaching estimated service life 
Alternative 2) - Redesign of the North Satellite Project heating, ventilation and air conditioning
system to provide supplemental cooling for the expanded facility. 
Pros: 
First costs may be equal to or slightly more than the recommended alternative to connect
to the Central Terminal Mechanical Room via Mechanical Room four. 
Cons: 
There is no physical space in the current design for additional mechanical cooling
infrastructure at the North Satellite. 
This alternative impacts the current North Satellite architectural roof theme, structural
design and overall appearance and would delay the current design and construction
schedules. Current North Satellite program budget, design and schedule do not include
additional mechanical cooling infrastructure. 
Life cycle cost of the recommended alternative including maintenance, energy
consumption and replacement costs are anticipated to result in a lower overall long term 
cost than this alternative. 
Alternative 3) - Upsize the piping from the Central Mechanical Room to the north end of 
mechanical room four for extension to the North Satellite and interconnect this new piping with
the west and south steam, condensate and chilled water loops 
Pros: 
This would provide adequate steam, condensate and chilled water capacity for the 
Concourses C and D and North Satellite expansion. 
Enables full system redundancy and thus flexibility to provide steam, condensate and
chilled water from any of the loops in the event of a system failure or utility shutdowns
to facilitate construction activities 
The traveling public, airlines and tenants' experience and expectations during peak
summer weather will be met given these improvements to the infrastructure. 
Cons: 
This will require detailed design and complex construction in order support the existing 
steam, condesate and chilled water demand of the entire facility while simultaniously
installing the upsized steam, condensate and chilled water piping and connecting the
loops. 
Estimated cost to design and construct this project is $12,000,000 - $16,000,000

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
April 21, 2015 
Page 6 of 6 
Alternative 4) - Upsize just the piping from the Central Terminal Mechanical Room to the North
Satellite via mechanical room four, or from the junction in the CTE basement to the North end of
mechanical room four. 
Pros: 
This would provide adequate steam, condensate and chilled water capacity for the 
Concourses C and D and for North Satellite expansion. 
The Central Mechanical Plant has the capacity to supply the steam, condensate and
chilled water needs of the C & D Concourses and NorthSTAR program. 
The traveling public, airlines and tenants' experience and expectations during peak
summer weather will be met given these improvements to the infrastructure. 
Improves the heating and cooling systems on Concourses C & D 
Cons: 
This will require detailed design and complex construction in order support the existing 
steam, condensate and chilled water demand at the North Satellite while simultaneously
installing the upsized steam, condensate and chilled water piping. 
This alternative does not create system redundancy and the flexibility to supply steam,
condensate and chilled water from the Central Mechanical Room throughout the facility
from either of the loops. 
Estimated cost to design and construct this project is $9,950,000. 
This is the recommended alternative given the need to improve the heating and cooling
systems on Concourses C and D and to support the North Satellite expansion. 
ATTACHMENTS TO THIS REQUEST 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
July 24, 2012  Authorized the CEO to design, preform construction support and project
management services and overall project support in an amount not to exceed $32,000,000
for the renovation of the North Satellite passenger terminal and the Satellite Transit
Systems stations lobbies (North Satellite / Concourse C / North Baggage Claim) at
Seattle  Tacoma International Airport for an eventual total estimated project cost of
$194,000,000.