PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      5c 
ACTION ITEM 
Date of Meeting      April 1, 2014 
DATE:    March 21, 2014 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Wayne Grotheer, Director, Aviation Project Management Group 
David Soike, Director, Aviation Facilities and Capital Program 
SUBJECT:  Concourse D Roof Replacement Project (CIP #C800550) 
Amount of This Request:          $219,000   Source of      Airport Development
Funds:        Fund and Future
Est. Total Project Cost:           $3,946,000 
Bonds 
Est. State and Local             $244,000 
Taxes: 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to 1) increase the budget for
the Concourse D Roof Replacement Project by $219,000 and 2) execute a major public works
construction contract with the low responsive and responsible bidder, notwithstanding the low
bid exceeding the engineers estimate by more than 10 percent. The new authorized total project
cost will be $3,946,000. 
SYNOPSIS 
The commission authorized advertisement for bids for the Concourse D Roof Replacement
Project on January 28, 2014. When the six contractor bids received were opened on March 20,
2014, the lowest responsive and responsible bid, from Queen City Sheet Metal & Roofing, Inc.,
exceeded the engineer's estimate by nearly 17%. This represents a bid irregularity requiring
further Commission action prior to contract award in accordance with Section 4.2.3.4 of
Resolution No. 3605, as amended by Resolution No. 3628. The additional authorization of
$219,000 represents the difference between the engineer's estimate and the lowest bid, plus sales
tax, and construction contingency amounts. This project was included in the 2014  2018 capital
budget and plan of finance. 
Port staff has carefully reviewed the project scope in light of these increased costs and has
determined that this project remains critical to the roof replacement cycle and the objective to
provide a safe and functional facility. 


Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 21, 2014 
Page 2 of 6 
BACKGROUND 
On July 9, 2013, the Port of Seattle Commission authorized design of the Concourse D Roof
Replacement Project with a total budget of $3,727,000. On January 28, 2014, the Commission
authorized construction of the project in the amount of $3,272,000. On February 26, 2014, the
project was advertised for construction bids. A pre-bid meeting and site tour was held on March
11, 2014 with several prime contractors in attendance.
Six construction bids were received and opened on March 20, 2014, with Queen City Sheet
Metal & Roofing, Inc. as the apparent lowest responsive and responsible bidder with a bid of
$2,298,000. The Port's engineer's estimate for the project was $1,975,050. The difference
between the engineer's estimate and the low bidder exceeds 10% necessitating this Commission
authorization request.  The remaining five bids received were ranged from $2,613,275 to
$2,948,590.  Adding sales tax and construction contingency to the difference between the
engineer's estimate and the low bidder, brings the request to $219,000. 
Port staff has reviewed the engineer's estimate and identified some factors that may have
contributed to the bid difference, including but not limited to, 1) the KalWall window
replacement and refurbishment, 2) logistical complications associated with the delivery and
removal of construction personnel, materials and construction debris, 3) PCAir piping which
slows the roofing process down, and 4) a shortened construction duration added to the project to
avoid having contractors work in inclement weather which would further damage Port
infrastructure. In light of the number of bids received (six bids represents a significant response)
and the range of their prices, Port staff believes the bid price received from Queen City Sheet
Metal & Roofing, Inc. to be fair and reasonable and that the bids received accurately reflect the
cost of the work.
PROJECT JUSTIFICATION AND DETAILS 
Maintaining Airport roofing systems supports the Port's objective to provide safe and functional
facilities. As a critical system, the Concourse D roof must be replaced as it has aged beyond its
dependable, leak-free, lifespan. When a roofing system fails and leaks emerge, they must be
corrected on an emergency basis in order to preserve underlying infrastructure and provide good
customer service. Delaying repairs until leaks require emergency attention tends to be more
expensive due to scheduling pressures. In addition, repairing damage from leaks inside the terminal
can be extensive and expensive. Proceeding with replacement of the Concourse D roof will preserve
the Airport's infrastructure investments and support outstanding customer experience for travelers
and tenants.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 21, 2014 
Page 3 of 6 
Project Objectives 
The project objectives have not changed since it was advertised for bid and includes removing
and replacing the existing roofing system on Concourse D of the Airport. 
Scope of Work 
Remove and replace the existing roof system on Concourse D at the Airport and install
a new 65 millimeter elastomeric roofing system (approximately 70,100 square feet). 
Remove and replace two skylights and make repairs to existing skylight window/walls. 
Add permanent safety ladders. 
Schedule 
Commission authorization to Design:                         July 2013 
Commission Authorization for Construction:                    January 2014 
Issue Notice to Proceed:                                  June 2014 
Construction Complete:                                September 2014 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                      $1,927,750          $0    $1,927,750 
Budget Increase Authorized July 9, 2014       $1,325,050     $474,200    $1,799,250 
Current budget increase                   $119,000     $100,000     $219,000 
Revised Budget                     $3,371,800     $574,200    $3,946,000 
Previous Authorizations                 $3,252,800     $474,200    $3,727,000 
Current request for authorization              $119,000      $100,000      $219,000 
Total Authorizations, including this request     $3,371,800      $574,200    $3,946,000 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost              $3,371,800     $574,200    $3,946,000 
Project Cost Breakdown                     This Request       Total Project 
Construction                                $202,000         $2,590,000 
Construction Management                         $0         $359,000 
Design                                       $0          $430,000 
Project Management                             $0         $287,000
Permitting                                      $0           $36,000 
State & Local Taxes (estimated)                    $17,000          $244,000 
Total                                       $219,000         $3,946,000 
Budget Status and Source of Funds 
This project is included in the 2014  2018 capital budget and plan of finance. The capital
budget increase of $119,000 will be transferred from the Aeronautical Allowance CIP (C800404)

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 21, 2014 
Page 4 of 6 
resulting in no net change to the Airport capital budget. The Airport will seek to absorb the
$100,000 expense increase in the 2014 operating budget through savings or use of contingency.
The funding source will be the Airport Development Fund and future revenue bonds. The Port
plans to issue revenue bonds in 2014 to fund a number of projects.
Financial Analysis and Summary 
CIP Category             Renewal/Enhancement 
Project Type              Renewal & Replacement 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        $3,946,000 
Business Unit (BU)          Terminal 
Effect on business performance  NOI after depreciation will increase 
IRR/NPV             N/A 
CPE Impact             $.02 in 2014 for expense work, and $.01 for 2015 and
beyond for ongoing capital costs. 
Lifecycle Cost and Savings 
The existing roof has reached its life expectancy of 15 years. Repair costs have increased since
year 10. The new roof in this section is not expected to have significant repair costs for the first
five years. Preventive maintenance costs will be consistent with the current maintenance
program. It is expected that the newer roofing system will have a greater life expectancy than the
original system by at approximately 15%. 
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. The Airport must maintain its existing
terminal to accommodate current as well as future passenger and cargo levels. 
Replacing the most distressed Airport roofs in order of importance supports the objectives
identified in the Aviation Division's Strategy of operating a World Class International Airport
by: ensuring safe and secure operation; meeting needs of our tenants, passengers and the region's
economy; and managing our assets to minimize the long-term total cost of ownership. 
The Project Manager and the Office of Social Responsibility worked together to determine small
business participation opportunities, in accordance with small business Resolution No. 3618. 
TRIPLE BOTTOM LINE 
Economic Development 
This roof replacement project represents an investment in our current facility and supports the
long-term vitality of the Airport, businesses within the Airport, and the traveling public.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 21, 2014 
Page 5 of 6 
Environmental Responsibility 
The new roof will be Energy Star rated and have a minimum solar reflective index that exceeds
78, which is the value required to obtain the LEED Credit NC7.2.  This will reduce air
conditioning loads and save energy. The insulating value of the new roof will be greater than
that of the existing roof. By replacing the roof and preventing damage to the underlying building
systems, the life of the existing building systems will be prolonged. 
Community Benefits 
Replacing the roof will prevent water leak damage to other building systems, disruption of
airport operations and will improve customer service. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Re-bid the roof hoping that contractors would recognize the Port will not pay
for the costs of a project that are higher than the engineer's estimate. Port staff's analysis of the
engineer's estimate and the six bids received indicate that it is likely the Port would receive
similar high bids if the project was advertised for bid a second time. Re-bidding the project
would also further delay completion beyond the summer construction window. This is not the
recommended alternative. 
Alternative 2)  Reduce the project scope so that the cost of construction meets the previously
authorized budget. Project staff reviewed all aspects of the project scope after the high bids were
received and determined that although scope could be reduced, the project as currently scoped
represents the minimum improvements that are needed to provide water-tight facilities and
protect existing infrastructure. This is not the recommended alternative. 
Alternative 3)  Authorize an additional $219,000 and award the major construction contract to
Queen City Sheet Metal & Roofing, Inc., the lowest responsive and responsible bidder. This
alternative preserves all of the necessary project scope and best facilitates the project schedule.
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
January 28, 2014  the Commission voted to authorize construction funds for the
Concourse D roof replacement. 
July 9, 2013  the Commission voted to authorize design funds for the Concourse D roof
replacement. 
January 8, 2013  the Commission voted to authorize construction funds for the North
End Main terminal roof replacement.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 21, 2014 
Page 6 of 6 
January 24, 2013  the Commission voted to authorize construction funds for the Fire
Station roof replacement. 
July 26, 2011  the Commission voted to approve design funds for the second phase of
the Airport re-roofing programs including design of the Fire Station and North End Main
Terminal roofing systems. 
November 30, 2010  the Commission voted to authorize construction funds for the first
phase of the Airport re-roofing program. 
April 27, 2010  the Commission voted to approve design funds for the first phase of the
Airport re-roofing program. 
September 22, 2009  the Commission was briefed on facility renewal projects that were
necessary in future years.  The Airport re-roofing program was included in the
presentation.