PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6b 
ACTION ITEM 
Date of Meeting      May 13, 2014 
DATE:    May 5, 2014 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Michael Ehl, Director, Airport Operations 
Wayne Grotheer, Director, Aviation Project Management 
SUBJECT:  International Window Wall Ticket Counters for Seattle-Tacoma International
Airport (C800490) 
Amount of This Request:        $826,000   Source of Funds:  Airport Development
Fund and Existing
Est. Total Project Cost:          $5,636,000 
Revenue Bonds 
Est. State and Local Taxes:        $304,000 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to: (1) increase the budget for
the International Window Wall Ticket Counters project (C800490) by $826,000 for increased
design and construction costs, bringing its total cost to $5,636,000; and (2) issue a change order
for this same project's construction contract, MC-0317526, to extend the contract duration by up
to 75 days to complete changed work on the project. The total amount of this request is
$826,000, of an estimated total project cost of $5,636,000. 
SYNOPSIS 
The International Window Wall Ticket Counters project has suffered cost growth in both
construction and design. Construction cost growth can be traced to design quality issues, safety
changes, and schedule delays. Design cost growth includes responding to construction issues and
design of a self-bag drop system. The additional contract time of up to 75 days is needed to
reconcile the construction schedule impacts that resulted from the design changes. This request
will be sufficient to close out the project. 
COST GROWTH 
Despite the design and construction challenges, the International Window Wall Ticket Counters
project opened to the public on February 18, 2014. It is operating with four international airlines
using it regularly: ANA, Hainan Airlines, Emirates, and EVA Air. The project met its goal of
providing additional check-in capability to allow greater capacity for both existing and future
international carriers, making provisions for a future self-service bag drop system and extending
the flexibility of the C60/C61 baggage systems. 

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 5, 2014 
Page 2 of 6 
This project construction contract was composed of two CIPs. CIP C800382 provided baggage
connectivity between the C60 and C61 baggage systems and did not suffer cost growth. C800490
provided new ticket counters and baggage belt and requires additional budget to complete it. 
The added construction costs of $384,000 can be attributed as follows: 
Design quality issues account for approximately ..............................................65% 
Safety related changes account for approximately ............................................13% 
Varying site conditions account for approximately .............................................6% 
All other changes account for approximately ....................................................16% 
The added design costs of $436,000 can be attributed as follows: 
Project design changes account for approximately ............................................10% 
Added construction support accounts for approximately ...................................20% 
Re-design of the baggage belt to prepare it for a future self-service 
bag drop system (included in the project scope) accounts for approximately ....15% 
Design for a self-service bag drop system purchase and 
installation (not included in the project scope) accounts for approximately ......55% 
HISTORY 
On December 11, 2012, the Port Commission authorized advertisement and construction of the
International Window Wall Ticket Counters project. The total amount requested  for  CIP
C800490 was $4,810,000.  Contract MC-0317526 executed with the successful bidder, PCL
Construction Services, Inc., was in the amount of $3,431,700.00. This represented a savings of
over $600,000 compared to the engineer's estimate. Construction started in May 2013. 
During construction, issues surfaced  that were not adequately addressed in the contract
documents. For instance, elements of the design needed changing to conform to energy code
requirements. The amount of insulation wa s not sufficient. Another example was, as the
contractor removed the baggage claim ceiling in order to place new structural steel components 
for the floor above, it was found that a significant amount of existing electrical service was an
obstruction in the work area, making access to the site for the new steel extremely difficult. The
structural steel was re-designed to be simpler and require less effort to install. As the structural
steel took a long time to produce for the contractor, this extended the project construction
schedule. 
The contractor has submitted numerous requests for additional compensation due to changes
during construction on this contract. For instance, adding insulation to meet the energy code
provisions required some of the exterior walls to become larger. This had a knock-on effect of
requiring the building metal cladding to be re-sized and re-ordered. The baggage system motor
control panel required changes to its construction in the field as its required components could 
not fit within it. In order to provide a safe working environment for ongoing maintenance, the
design was changed to a new larger single panel in a different location rather than two separately
located panels. The existing structure of the building entrance vestibules did not match
expectations. This varying site condition required changes to the design in the field as well.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 5, 2014 
Page 3 of 6 
Further, the contractor has submitted a request for additional time and delay costs as well. Port
staff is evaluating each of these requests and has executed change orders for some. Staff 
anticipates additional change orders to be negotiated and executed along with resolution of the
delay issue all within this revised budget amount. 
As a result of these construction difficulties, the construction contract has required several time
extensions totaling 109 days to date. Staff is currently negotiating with the contractor another 
time extension of up to 75 additional days to complete change order work that requires a longlead
ordering period. The exact number of days needed will be dependent on the supplier's
delivery schedule, which staff is confirming. Once the negotiation of the change is complete, 
staff will need to execute a change order for the actual number of additional days needed. 
The design contract for this project experienced significant cost increases as well. Some
increases were due to design changes to the project, such as re-design of the baggage belt to
prepare it for a future self-service bag drop system and providing a new communications room.
During construction, additional costs were incurred under this design services contract to
respond to the construction issues that arose. 
Because of the low bids and the resulting savings to the project, and before the full magnitude of
the construction cost impacts were known, the project team sought to reallocate the savings and
prematurely pursued the full design and purchase of a baggage self-service drop system for this
end of the airport ticket lobby. This included design for this system in this project site as well as
an adjacent ticket lobby that was determined to be optimal for this service. The complete design
of this system and its procurement at either location were both out of the authorized scope of and
funding for this project. Therefore, the design work for this system has stopped and no baggage
self-drop system will be purchased or installed as part of this project. Port staff will be able to 
utilize the designs completed to date in a future project at a later date, subject to future
consideration by the Commission. 
Included in this additional funding request is $260,000 worth of work that is necessary to
complete the project but has not yet been undertaken. This work includes project scope elements
that still need to be completed per the original scope, and project scope additions deemed
necessary to improve the safety and security performance of this project. Original scope items
are completion and installation of new flight information displays and changes to the ticket
counter lighting. Potential project scope additions are: access control treatment of the baggage
belt door, installation of lighting in the bag well, and cord covers for overhead power cords. If
this authorization request is approved, then this work would be undertaken and completed. If this
authorization request is not approved, then this work would not be completed as a part of this
project. Some elements could be completed using other means, such as through separate small
projects or using operating budget funds. 
PROJECT JUSTIFICATION AND DETAILS 
The installation of 14 ticket counter positions and bag drop conveyor along the wall opposite the
international ticket counters is complete and operational. This request is for additional funding to
complete and close out the project.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 5, 2014 
Page 4 of 6 

Project Objectives 
Complete the remaining work of the International Window Wall Ticket Counters project. 
Conclude the contracts with PCL Construction Services, Inc. and OAC Services, Inc. 
FINANCIAL IMPLICATIONS 
The total estimated cost for this project is $5,636,000 as shown below: 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                      $4,025,000         $0    $4,025,000 
Previous budget increase                  $785,000          $0     $785,000 
Current budget increase                   $826,000          $0     $826,000 
Revised budget                      $5,636,000          $0    $5,636,000 
Previous Authorizations                 $4,810,000         $0    $4,810,000 
Current request for authorization              $826,000          $0     $826,000 
Total Authorizations, including this request     $5,636,000          $0    $5,636,000 
Project Cost Breakdown                    This Request         Total Project 
Design                                  $436,000          $1,410,000 
Construction                               $384,000          $3,922,000 
Sales Tax                                  $6,000           $304,000 
Total                                      $826,000           $5,636,000 
Budget Status and Source of Funds 
This project, CIP #800490, is included in the 2014-2018 capital budget and plan finance. The
source of funds for this project includes existing revenue bonds and the Airport Development
Fund. The budget increase will be transferred from the Aeronautical Allowance CIP (C800404)
resulting in no net change to the Airport capital budget.
Financial Analysis and Summary 
CIP Category             Renewal/Enhancement 
Project Type              Customer Service 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        5,636,000 
Business Unit (BU)          Terminal 
Effect on business performance  NOI after depreciation will increase 
IRR/NPV             N/A 
CPE Impact             CPE will increase by $.02 in 2015. However, no change
to business plan forecast as this project was included.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 5, 2014 
Page 5 of 6 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Authorize funds to cover work completed but not yet paid, which exceeds
authorization, and complete none of the $260,000 of further work (either in or out of current
approved scope) for this project left to be completed but not yet undertaken. This alternative
would reduce customer service by not providing flight information displays, and reduce security 
by not providing access control treatment to the baggage door. Safety items like lighting could be
completed using other means. With this alternative, the request for authorization would be
reduced  to $566,000  and a total estimated project cost of $5,376,000.  This is not the
recommended alternative. 
Alternative 2)  Authorize funds to cover work completed but not yet paid, which exceeds 
authorization, and complete only the items of further work which are in the current approved
scope to be completed but not yet undertaken. This alternative would maintain customer service
by providing flight information displays, but reduce security by not providing access control
treatment to the baggage door. Safety items like lighting could be completed using other means.
With this alternative, the request for authorization would be reduced to $729,000 and a total
estimated project cost of $5,539,000. This is not the recommended alternative. 
Alternative 3)  Authorize completion of the International Window Wall Ticket Counters
project as requested including additional scope items and cover expenditures that have exceeded
authorization.  This will result in a complete project that maintains customer service by
providing flight information displays, improves security by providing access control treatment to
the baggage door,  and improves safety by improving bagwell lighting.  This is the
recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
Photos of Project 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
December 11, 2012, the Port Commission authorized the increase of scope and budget
for the International Window Wall Ticket Counters (C800490), the increase of scope
and budget for Baggage System Renovation  Airline Realignment (C800382) and to
advertise and execute a construction contract for the International Window Wall Ticket
Counters project and to use Port Crews for the amount of $5,246,000. 
April 10, 2012, the Port Commission authorized the design for the International
Window Wall Ticket Counters project in the amount of $1,575,000 
December 6, 2011, the Port Commission authorized construction of the Baggage
Handling System (BHS) improvements  C22 BHS Connection to C1/ C1-Mk1
Replacement (CIP#C800382) in the amount of $3,604,000. 
September 27, 2011, the Port Commission authorized execution of an IDIQ contract for
Airline Realignment Tenant Improvements and Ticket Counter Design Services totaling
$10,000,000.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 5, 2014 
Page 6 of 6 
March 1, 2011, the Port Commission Authorized design and some construction of the
Baggage Handling System (BHS) Improvements  C22BHS connection to C1/C1-MK1
Replacement/TC3 Replacement (C800382) in the amount of $1,731,000.