PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      6e 
ACTION ITEM             Date of Meeting    May 22, 2012 

DATE:    May 11, 2012 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    James R. Schone, Director, Aviation Business Development 
Jeff Wolf, Manager, Aviation Business Development and Analysis 
George England, Program Leader, Aviation Project Management 
SUBJECT:  Doug Fox Parking Lot Service Upgrades Project (CIP #C800451) 
Amount of This Request: $768,000     Source of Funds: Airport Development Fund 
Total Project Cost: $6,123,000 
ACTION REQUESTED:
Request Commission authorization: (1) to increase scope and budget for the Doug Fox Lot
Service Upgrades project at the Seattle-Tacoma International Airport parking lot to include
resurfacing, lighting, building, and road signage; and (2) for the Chief Executive Officer to
execute utility agreements; and prepare full design documents for the project in an amount not to
exceed $768,000. An amount of $5,095,000 will be added to an earlier authorization of
$1,028,000 for storm drainage work for a total new project budget of $6,123,000. 
SYNOPSIS:
The Port owns two public parking facilities at the Airport. One is the large on-site Airport
garage adjacent to the main terminal building that provides immediate direct walking connection
to the ticketing and bag claim areas. The second is an "off-site" surface parking lot operation on
170th Street that is approximately  mile from the main terminal building and provides shuttle
bus service to the main terminal garage to allow travelers a short walk into the terminal building.
This off-site public parking facility is known as the Doug Fox Lot (see Exhibit 1). The Doug
Fox name originated as a result of an earlier lease to an independent operator who also ran a
former well-known local travel agency by the same name. The current operating contract is near
the end of its lease period. In the near future, the Airport plans to publicly request competitive
proposals for operation of the parking lot. In order to allow the future operator the greatest
chance of success and the Airport to maximize its return on the lease, it is necessary to make
significant physical improvements to the facility.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 11, 2012 
Page 2 of 10 

This authorization will allow coordination with the City of SeaTac and move design forward to
completion for surface pavement, lighting, roadway signage, and the potential replacement of the
aging operations building that is at the entrance of the facility, either by the Port, or if determined
appropriate, by the operator. Storm drainage improvements were approved by the Commission 
in February 2012, and that work will be incorporated into the overall facility improvement
project.
With approval, Port staff will proceed with design, using in-house staff and external consultants, 
and will return to Commission for approval of construction funds in the fourth quarter of 2012. 
Construction of the facility improvements is currently scheduled for 2013. Design funds specific
to replacement of the building are included in this request to provide the best possible
opportunity to construct the replacement building or make improvements to the existing building
in 2013. However, construction of the new building portion of the facility improvements may be
delayed until 2014 depending on the ability of Port staff, and the future facility operator, to
finalize a building design. 
On February 14, 2012, Commission approved $1,028,000 under CIP #C800451 for the design
and construction of a new storm drainage system at the Doug Fox Lot to complete the drainage
improvements by September 30, 2012, and was informed that additional improvements to the lot
were being evaluated. As part of the evaluation of the improvements being requested, staff
determined that consolidating the elements of both projects would obtain significant design and
construction efficiencies. With approval of this requested action, the storm drainage work will
be consolidated with the additional project elements, such as surface pavement, lighting, signage,
and building construction described in this request within CIP #C800451. This requested action
constitutes a Project Change per Resolution 3605, as amended by Resolution 3628, section
4.2.3.3, and thus requires Commission authorization. The total project budget for all work
elements will be $6,123,000 ($1,028,000 plus $5,095,000). This project was included in the
2012  2016 capital budget and plan of finance as a business plan prospective project with a
budget of $1,665,000. The budget increase will be transferred from the non-aeronautical
allowance CIP (#C800152), a business plan prospective project, resulting in no net change to the
Aviation capital budget. 
BACKGROUND: 
The Airport auto parking market is highly competitive with two key characteristics being 
distance from the Airport and available services. No other parking facility is as close to the main
terminal building as the Airport garage, owned and operated by the Airport, where the customers
do not have to ride a shuttle van to the Airport, but can simply walk across the skybridge into the
terminal. All other parking lots and garages are "off-site" and utilize a shuttle van to carry their
customers to the terminal. Regarding available services, recently built off-site facilities also
offer covered parking, valet parking, auto detailing and amenities such as restaurants and retail
shops.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 11, 2012 
Page 3 of 10 

In addition to the Airport garage, the Port owns the Doug Fox Lot. This property is currently
operated as a surface parking lot for Airport parking by a third party lessee, ATZ Inc. Doug Fox
Parking is the current brand name affiliated with the facility. The lot has been utilized primarily
for Airport parking since its development well over 20 years ago. It is an uncovered surface lot
and like all other off-site parking facilities, the operator utilizes a shuttle van to bring customers
to and from the Airport. However, it has an advantage of being relatively close to the Airport
with a convenient approach from the North Airport Expressway. The lot provides the Airport
with a facility that competes in the off-site market where prices are lower, while the Airport
garage provides the opportunity to set rates higher based on the value of proximity to the
terminal.
Prior to expiration of the Port's lease and concession agreement with ATZ Inc. on September 30,
2009, a two-year extension was negotiated with the possibility for a one-year option. In 2011,
the one-year option was executed, extending the agreement termination date to September 30,
2012. The agreement includes a month-to-month holdover clause for a maximum of six months,
thus allowing for the termination of the agreement to be extended to March 31, 2013. 
In anticipation of the end of the lease with ATZ, Port staff commissioned a study by Heartland
Consulting in 2009 to evaluate alternative uses of the Doug Fox property. This study was
updated and validated in 2011 by HDR Engineering. The results showed that an office complex,
hotel, or combination thereof would be viable. However, industrial use was not, primarily 
because of traffic and access issues. The main challenge identified with the viable alternative
uses was the timing. The analysis showed that these opportunities would not be viable for at
least another ten years. The hotel was viable in the shorter term but there are potentially better
locations to serve the Airport that are currently being evaluated.
Finally, as the Doug Fox Lot serves the more price-conscious traveler, simply closing the lot
would not attract those customers to the Airport garage but would more likely drive them to
other off-site lots, depriving the Airport of substantial income. Based on these factors, Port staff
made the determination that the best near-term use of this property is as an off-site parking
facility. 
Revenues generated at the Doug Fox Parking Lot peaked in 2006 at $5.8 million with concession
and lease revenue to the Port of $3.2 million. Since then, revenues at the facility have dropped to
$4.6 million in 2011 with revenue to the Port dropping to $2.2 million. Outside of recessionbased
causes, three main factors have been identified that Port staff believes have significantly
contributed to this drop in revenues. 
First, operations at the facility were significantly impacted beginning in 2006 with the
construction of the North Airport Expressway Relocation project. A significant portion of the
southwest corner of the facility was taken out of service to accommodate the new elevated
roadway, resulting in the elimination of 154 parking stalls (approximately 9% of the then-total
stalls). In addition, the new elevated roadway significantly reduced visibility of the lot by

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 11, 2012 
Page 4 of 10 

blocking the line of sight of the entrance and building located at the south end of the facility,
primarily for customers travelling along South 170th Street. Moreover, prior to the construction
of the new elevated roadway, an on-ramp allowing customers quick and easy access to the
northbound lanes of the North Airport Expressway existed. However, this was eliminated to
accommodate the new roadway. 
Second, the overall Airport parking market has seen a significant enhancement in new and
existing parking facilities over the last several years. The level of service provided by local and
national parking operators in the Airport parking market has increased dramatically, including
the construction of multi-level, structured parking facilities along International Boulevard that
offer retail and food establishments. 
Third, many physical components of the facility, including the pavement, the building located at
the south end of the facility, the on-site lighting, and the stormwater collection system are at a
point in their lifecycle that, in order to continue being functional and operational, now require
investment. 
A variety of improvements to the facility were evaluated and staff recommends proceeding with
pavement repair and upgrade, a new and improved lighting system, new signage to improve
visibility of the facility, and a new building. The current building at the facility was originally
constructed to support a travel agency operation, branded Doug Fox Travel. However, since
construction, the facility has evolved into an Airport parking operation with no travel agency
functions. The current design and configuration of the building does not support parking
operations in a manner consistent with other parking facilities in the Airport parking market. In
addition, the current building is two to five years from the end of its useful life. Early in the
design effort, staff will determine if replacement of the building is necessary and best
accomplished via creating a Port-owned asset using the Port's public works design and
contracting processes or via the operator selected during the upcoming competitive process.
All of the recommended improvements are expected to address the three factors listed above that
have affected revenue performance. Port staff believes revenues generated from the facility will
increase with the implementation of the recommended improvements, as outlined in the financial
section below.
With the approval of this request, the additional scope and budget described in this memo will be
added to previously authorized storm drainage work within CIP #C800451, resulting in a total
project budget of $6,123,000 ($1,028,000 plus $5,095,000). This is based on three factors
expected to result in cost and time savings; including 1) design efficiency with the reduction in
the number of required construction documents; 2) construction efficiency resulting from a
contractor's ability to determine how to sequence the various work elements and the reduction in
the number of mobilizations/demobilizations; and 3) construction management efficiency
associated with the reduction in the number of contracts to be managed. In addition,

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 11, 2012 
Page 5 of 10 

consolidating all the project elements into the 2013 construction window  if possible  will
eliminate any disruption to the operation at the facility through the end of the current contract. 
Staff expects to return to the Commission for approval of construction funds for the non-storm
drainage project elements in November, 2012. 
As mentioned above, the current agreement with ATZ Inc. expires on September 30, 2012. Port
staff expects to release a request for proposals (RFP) for the operation of the facility in the
second quarter of 2012, with selection of an operator, including finalization of a new lease and
concession agreement, occurring in the fourth quarter of 2012. Staff expects the new agreement
term to be five years, with two, five-year options and anticipates requesting Commission
authorization for execution of the new agreement in the fourth quarter of 2012. 
Staff expects the commencement date of a new agreement to be no later than February 1, 2013,
to allow the selected operator sufficient time to prepare the facility for operation, including
installation of a parking revenue control system. The transition between operators will be
managed to ensure the facility remains open for business at all times. In addition, staff will work
with the selected operator in determining a new branding campaign for the facility, which will be
implemented upon the commencement of the new agreement. Also, if this design funding
request is approved, staff will include in the RFP a description of the anticipated improvements
to the facility. 
PROJECT JUSTIFICATION: 
With the current lease expiring September 30, 2012, the Airport has the opportunity to make
needed repairs to increase parking revenues generated from the facility. The facility represents
an important element of the Port's Airport parking business with annual Port revenues regularly
surpassing $2 million. 
Project Statement: 
Design and construct improvements, including new pavement, lighting, signage, and a new
building at the facility by the end of 2013. 
Project Objectives: 
The Port's objective is to increase revenues generated from the facility. A n enhanced customer
experience will result from new pavement, lighting, signage and a new or improved building, 
allowing the facility to offer a more competitive parking product in the Airport parking market.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 11, 2012 
Page 6 of 10 

PROJECT SCOPE OF WORK AND SCHEDULE: 
Original Scope of Work: 
Stormwater drainage repair work 
Additional Scope of Work: 
New lot asphalt surface 
Lighting system upgrade 
New and improved signage 
New building, if necessary 
Schedule: 
Start                   Finish 
Design                     May 2012            November 2012 
Construction                  April 2013            December 2013 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary 
Capital     Expense (RMM)     Total 
Original Budget                       $1,665,000            $0    $1,655,000 
Budget reduction                       -$637,000                 -$637,000 
Previous budget                       $1,028,000                $1,028,000 
Scope and budget increase                $5,045,000        $50,000    $5,095,000 
Revised budget                       $6,073,000        $50,000    $6,123,000 
Previous Authorizations                  $1,028,000            $0    $1,028,000 
Current request for authorization              $768,000            $0     $768,000 
Total Authorizations, including this request      $1,796,000            $0    $1,796,000 
Remaining budget to be authorized          $4,277,000        $50,000    $4,327,000 
Total Estimated Project Cost            $6,073,000        $50,000    $6,123,000 
Project Cost Breakdown 
This Request     Total Project 
Construction                                     $0       $4,099,000 
Sales Tax On Construction                           $0        $389,000 
Design and Other Soft Costs                      $768,000       $1,016,000 
Construction Management                         $0       $598,000 
Art Program                                   $0        $21,000 
Total                                    $768,000       $6,123,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 11, 2012 
Page 7 of 10 

Budget Status and Source of Funds 
This project, CIP #C800451, was included in the 2012  2016 capital budget and plan of finance as a
business plan prospective project with a budget of $1,665,000. The budget increase will be
transferred from the non-aeronautical allowance CIP (#C800152), a business plan prospective
project, resulting in no net change to the Aviation capital budget. The funding source for this
project will be the Airport Development Fund. 
Financial Analysis and Summary: 
As part of the February 14, 2012, request for design and construction funding for the stormwater
drainage repair work, the financial analysis assumed that by upgrading the drainage system, the
current revenues generated at the facility would be maintained. However, no incremental
revenues were anticipated. With approval and implementation of the additional improvements to
the facility proposed in this request, new incremental revenues are anticipated. 
The financial analysis and justification associated with this request includes only the new
incremental revenue generated from the facility with implementation of all the project elements,
including the cost of the previously approved drainage work. This was done to create a
conservative financial analysis.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 11, 2012 
Page 8 of 10 

CIP Category          Revenue/Capacity Growth 
Project Type           Business Expansion/New Business Development 
Risk adjusted Discount    8% 
rate 
Key risk factors             Construction risks: the project may encounter
unexpected delays due to unforeseen issues, such as
contaminated soils, which may increase the cost of
the project and/or cause schedule delays. 
Financial risks: general economic conditions will
impact the parking market and if general economic
declines occur in the future, future incremental
revenues may fall short of forecasts. 
Project cost for analysis     $6.1 million 
Business Unit (BU)       Business Development 
Effect on business        The financial analysis assumes that with construction of the
performance           project improvements at the facility, annual revenues to the
Port will increase. Current revenues to the Port are
approximately $2 million to $2.5 million per year. Within
five years of implementation of the improvements, annual
revenues are anticipated to increase by $1 million, totaling
more than $3.5 million. Within ten years, additional
revenues are anticipated to surpass $2 million, bringing the
annual total to more than $4.5 million. 
IRR/NPV           NPV: $7 million 
IRR: 14% 
Payback: 6 years 
STRATEGIC OBJECTIVES: 
This project aligns with the Port's objective of maintaining and enhancing customer service
levels for the traveling public. In addition, a result of this project will be the ability of the
Airport to increase a current non-aeronautical revenue stream. 
ENVIRONMENTAL SUSTAINABILITY: 
This project will provide the opportunity to apply environmental sustainability principles
associated with the new improvements, including: 
Energy efficient light fixtures; 
Upgrading the drainage system to better manage stormwater; 
Utilizing, if practicable, recycled asphalt to pave the area; and

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 11, 2012 
Page 9 of 10 

Coordinating with the future tenant to improve or replace the existing building using
"green" design standards. 
BUSINESS PLAN OBJECTIVES: 
Approval of design of this project and subsequent approval for construction will contribute to
achievement of the Airport's business plan objective of "maximizing non-aeronautical net
operating income" by generating increased non-aeronautical revenues. 
TRIPLE BOTTOM LINE SUMMARY: 
The project supports economic development by investing in an upgraded parking lot to serve the
public's parking needs at the Airport. Environmental sustainability principles will be employed
consistent with Port policy. Also, procedures set forth in the Port's new Small Contractors and
Suppliers Program will be used when applicable in the project contracting process in
coordination with the Office of Social Responsibility. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1  Do nothing. Do not implement any improvements to the facility, beyond
the already approved stormwater drainage repair work. This alternative is not
recommended because the current deficiencies at the facility would continue to exist,
resulting in a poor customer experience and continued deterioration of various systems,
including pavement and lighting, and eventual failure of the building at the facility. 
Without the recommended improvements, deterioration of the various systems would 
continue, eventually resulting in the facility not being able to offer a safe and reliable
parking option to Airport customers. This is not the recommended alternative. 
Alternative 2  Invest this budget into the Airport garage and develop a low-cost parking
product on two floors of the garage recently vacated by the rental car companies. This
alternative would cannibalize the ability of the garage to charge premium parking rates
on floors just above the low-cost product. This is not the recommended alternative.
Alternative 3  Only invest in critical infrastructure needs, such as pavement and lighting, 
and do not invest in signage and a new building. This alternative would allow for
improvement to critical facility systems, thus marginally enhancing the level of customer
service. However, this alternative is not recommended as the facility will continue to be
less competitive due to its poor visibility to customers, and lower level of customer
service compared to other facilities in the Airport parking market. In addition, this
alternative would only defer the required investment in the building as the current
building has an estimated life of two-to-five years. Although there would be some new
incremental revenues, implementing the full array of improvements as part of Alternative

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 11, 2012 
Page 10 of 10 

4 would generate much larger incremental revenues. Alternative 3 is not the
recommended alternative. 
Alternative 4  Invest in improvements to the facility, including new pavement, new
lighting, new signage, and a new or improved building. This alternative will lead to a
better customer experience and enhanced revenues due to an upgraded parking facility 
that is more competitive in the Airport parking market. This is the recommended
alternative. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Exhibit 1  Doug Fox Project Site Location 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
February 14, 2012 - Commission approved funding for design and construction in the
amount of $1,028,000 to install a new stormwater drainage system by September 30,
2012.