PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      5c 
ACTION ITEM             Date of Meeting  November 27, 2012 
DATE:    November 15, 2012 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Ralph Graves, Managing Director, Capital Development 
Janice Zahn, Assistant Engineering Director 
SUBJECT:  Centralized Pre-Conditioned Air Project at Seattle-Tacoma International Airport 
MC-0316677
Amount of This Request:    $1,100,000      Total Project Cost: $47,225,000 
Source of Funds: Project Contingency and Airport Development Fund 
Est. State and Local Taxes: $3,035,141.13*     Total Contract Cost: $36,545,930 

ACTION REQUESTED:
Request Commission approval of an additional $1,100,000 to replenish construction contingency
due to disputed costs and authorization for the Chief Executive Officer to issue Change Order
No. 121 for Contract MC-0316677, Centralized Pre-Conditioned Air (PC Air) Project at Seattle-
Tacoma International Airport, in the amount of $344,558 to resolve the remaining disputed costs
related to Change Order No. 113 for changes to the routing of PC Air piping at Concourse D. 
SYNOPSIS:
On September 13, 2010, the Port executed a construction contract for PC Air to Lydig
Construction. During construction, the contractor identified many obstructions to the pipe
routing for Concourse D that were not addressed within the contract documents. In previous
Commission action, Change Order No. 113 was issued for the undisputed amount of $776,910 of
the contractor's proposed costs of $1,345,160. Negotiations have since resolved the remaining
costs related to this work for an additional $344,558. A change order is required to compensate
the contractor for additional costs related to previously issued Change Order No. 113. This will
bring the increase to date over the original contract cost to $5,687,275.15, or 19%. 
The construction contingency will be used to pay for this change order. The additional
$1,100,000 funding is needed to replenish the contingency and to pay for approximately
$800,000 of change orders (including Change Order No. 121) being issued to resolve $1.5 
million in disputed costs. There are still over $2 million in disputed costs that remain to be

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 15, 2012 
Page 2 of 5 
resolved. Staff intends to return to Commission as required for additional authorization as those
disputes are resolved. 
Disputed      Final Cost of
Cost Trend 
Amounts       Dispute 
CO #106 Disputed Costs Resolution - North Satellite
$ 51,496.00   $ 36,023.00 
Utility Tunnel Pipe Size Upgrade 
CO #113 Disputed Costs Resolution  Concourse D    $ 568,250.00    $ 344,558.00 
CO #119 Disputed Costs Resolution - North Satellite
$ 411,288.00    $ 175,379.00 
Utility Tunnel Access 
Pipe Insulation Application                     $ 470,337.00     $ 237,340.00 
$ 1,501,371.00    $ 793,300.00 
BACKGROUND: 
The PC Air project will allow flight crews to turn off aircraft auxiliary engines and plug in to the
Airport infrastructure to receive both heated and cooled air. This will lower costs to the airlines
while producing significant environmental benefits by reducing the release of tens of thousands
of tons of carbon dioxide (CO2) emissions each year. This project is a cost-effective way to aid
the airlines while improving the quality of the environment. The airlines have approved funding
for this project, most of which will now be covered by the Federal Aviation Administration
(FAA) Voluntary Airport Low Emission (VALE) grant. The VALE grant is contingent on
completing the work within three years of grant approval. 
Lydig Construction was the low bidder with contract execution on September 13, 2010. The
original contract amount was $27,013,400.00 with a contract completion date of December 12,
2012. The current contract completion date is January 17, 2013.
When completed, this project will save the airlines an estimated $13 million per year in jet fuel
savings. The payback period for the Port's share of project costs is in the two-year range. 
CHANGE ORDER DESCRIPTION: 
The following information relates to the pending change order scope and cost: 
Change Order No. 121 
Scope of work: Adjustment to the value of unilaterally issued Change Order No. 113.
Concourse D Mechanical HVAC piping shop drawing review revisions including added
structural, roofing, and fireproofing for the amount of $344,558.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 15, 2012 
Page 3 of 5 
The change order resolves the remaining cost dispute related to the performance of the work
related to the Concourse D pipe re-routing; total cost of Change Order Nos. 113 and 121
combined is $1,121,468. 
JUSTIFICATION: 
Subsequent to the execution of the construction contract, it was discovered that the designed
routing did not include enough information for the contractor to properly bid the work. This
included interferences where the pipe was to be installed along with missing building details.
Working collaboratively with the contractor, Port staff and the design consultant agreed upon a
new routing that simplified the installation of the pipe. However, omissions in the design
regarding building expansion joints required the addition of numerous pipe expansion joints and
associated appurtenances that were not in the original bid documents. This routing constitutes
the lowest cost and impact option to the project to complete pipe routing to D Concourse, which
eventually feeds the North Satellite as well. 
CONTRACT INFORMATION: 
The following information relates to the contract and competitive award: 
Contract award date:                         September 13, 2010 
Original period of performance:    September 13, 2010  December 12, 2012 
Previous contract extensions:                      37 Working Days 
Contract extension this change order:                       0 Days* 
Current Contract Completion Date:                 January 17, 2013 
FINANCIAL INFORMATION: 
Original contract amount:                        $27,013,400.00 
Previous Change Orders Executed:                   $4,858,433.00 
Current contract amount                         $31,871,833.00 
This request, Change Order No. 121                    $344,558.00 
Subtotal Construction Costs                       $32,216,391.00 
Anticipated sales tax @ 9.5%                        $3,060,557.15 
Revised Contract Amount                       $35,276,948.15 
*As there are multiple issues affecting the completion of the work, additional time may be
granted by separate change order after an analysis of whether this specific issue impacted the
project critical path and delayed the construction schedule.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 15, 2012 
Page 4 of 5 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary:            Capital      Expense    Total Project
Original Budget                        $40,600,000         $0   $ 40,600,000 
Previous Budget Increase                  $ 2,935,000     $590,000   $ 3,525,000 
Current Budget Increase                   $2,000,000         $0    $2,000,000 
Revised Budget                       $45,535,000     $590,000   $ 46,125,000 
Previous Authorizations                   $43,535,000     $590,000   $ 44,125,000 
Current request for Authorization             $ 1,100,000          $0   $ 1,100,000 
Total Authorizations, including this request      $46,635,000     $590,000   $ 47,225,000 
Remaining Budget to be Authorized                 $0         $0         $ 0 
Project Cost Breakdown:                   This Request         Total Project 
Construction Costs                             $1,004,566       $36,545,930 
Sales Tax                                     $95,434        $3,217,827 
Outside Professional Services                            $0        $3,559,000 
Project Management & other Soft Costs                     $0        $4,069,000 
Environmental Remediation Liability                                 $590,000 
Total                                        $1,100,000        $47,225,000 
Budget Status and Source of Funds 
This project (CIP #C800238) is included in the 2012-2016 capital budget and plan of finance 
with a budget of $43.5 million. The budget increase of $1,100,000 will be transferred from CIP
#C102166, Aeronautical Renewal & Replacement Allowance, thus there is no change to the
2012-2016 capital budget. The funding plan is predicated upon the Port receiving $21.2 million
in VALE program grants, with the remaining costs funded with Airport Development Fund, and
2010 revenue bonds. This project was reviewed by the airline representatives and approved
through a Majority-In-Interest vote in June 2008. 
Financial Analysis and Summary:
CIP Category             New/Enhancement 
Project Type               Infrastructure 
Risk adjusted Discount rate     10% 
Key risk factors              Realizations of savings due to lower jet fuel usage 
Project cost for analysis         $ 24,912,679 (Excludes VALE grant funded portion) 
Business Unit (BU)           Terminal cost Center 
Effect on business performance   NOI after depreciation will decrease due to recognizing
depreciation on the full cost yet recovering capital costs
for the non-VALE funded portion only. 
IRR/NPV              NPV range of net savings to airlines: $5 million to $30
million. (calculated in 2010) 
CPE Impact             CPE will increase by $.16 in 2013; however, this cost will
more than offset by decreased airline operating costs. This
project was included in the business plan forecast.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 15, 2012 
Page 5 of 5 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
On October 2, 2012, the Commission authorized a budget increase of $2,000,000 to cover
additional costs related to construction, design support, and Port Construction Services and Port
Maintenance support for the project. Additionally, the Commission authorized the execution of
Change Order 119 in the amount of $509,013 for additional costs related to the North Satellite
Tunnel pipe routing 
On September 27, 2011, the Commission authorized a budget increase $3,525,000 to cover
additional costs to the construction budget, outside professional services and PMG soft costs.
Total project funding authorization increased to $44,125,000. 
On September 11, 2012 the Commission authorized execution of Change Order 113 in the
amount of $776,910 for changes to the pipe routing at D Concourse. Total project funding
authorization remained at $44,125,000. 
On May 24, 2011, the Commission authorized execution of a $400,000 amendment to the
professional service agreement with Stantec Consulting. Total project funding authorization
remained at $40,600,000. 
On May 11, 2010, the Commission authorized staff to advertise for bids, apply a Project Labor
Agreement (PLA), and authorize Port Construction Services to perform pre-construction work,
including moving tenants, for Phase I and Phase II of the PC Air Project (CIP # C800238) at the
Airport and execute a construction contract. This authorization was for $36,830,000. The
estimated total project cost is $40,600,000. 
On January 13, 2009, the Commission authorized procurement and execution of service
agreements with consultants to perform design, prepare contract documents, and perform
contract administration for the Pre-Conditioned Air project at Seattle-Tacoma International
Airport in the amount of $3,770,000.