PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      5e 
ACTION ITEM             Date of Meeting    April 10, 2012 

DATE:    April 4, 2012 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Ralph Graves, Director, Capital Development Division 
SUBJECT:  Authorization of additional budget and authority to enter into a construction contract for 
airfield improvements. The various elements of work include:
Airfield Pavement Replacement (CIP #C102573), Runway 16 Center/34 Center
(16C/34C) Panel Replacement (CIP #C800112), Exterior Gate Improvements  
Airline Realignment (CIP #C800472), and Snow Dump Pavement Expansion (Small
Jobs CIP #C800017 WP 104647) 

Amount of This Request: $1,467,000         Source of Funds: Existing Revenue Bond and 
Airport Development Funds 
Est. State and Local Taxes: $691,000          Est. Jobs Created: 41 
Est. Total Project Cost: $10,500,000 
ACTION REQUESTED: 
Request Commission authorization for: 1) additional budget authorization of $1,467,000 because the
bids exceeded the Engineer's Estimate by greater than 10 percent; and 2) the Chief Executive Officer
to execute a contract in the amount of $6,553,964 with the low responsive and responsible bidder for
the 2012 Exterior Gates and Airfield Improvement Projects. This request increases the budget
authorization by $1,467,000 as a result of the higher than expected bids for a total project cost of 
$10,500,000.
SYNOPSIS: 
On March 8, 2012, the Port of Seattle bid the 2012 Exterior Gates and Airfield Improvement Projects.
The engineer's estimate was $5,329,782. On March 8, 2012 the Port of Seattle received 3 bids ranging
from $6,553,964 to $9,316,487, see table below. Bids were greater than ten percent over the
engineer's estimate; therefore, in accordance with Resolution No. 3605, as amended, staff is seeking
Commission approval to execute this contract. 
Contractor             Bid       % over Engineer's Estimate 
Gary Merlino Construction    $6,553,964.00          23.0% 
MJ Hughes Construction     $6,943,376.00          30.3% 
MacroZ Technology       $9,316,487.00          74.8%

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 4, 2012 
Page 2 of 6 
Staff analyzed the engineer's estimate of $5,329,782 and found the following items were not priced
appropriately for the estimate. 
The cost of delivery and placement of concrete and crushed aggregate increased due to rising
fuel prices. The estimate was completed well before the latest rises. 
The difference in Safety and Mobilization costs reflect the contractors' concern about the large
number of phases and strict schedule for the work. There are approximately three dozen phases
of work which include a runway, taxiway, and multiple areas around the Terminal. 
The high cost of the fuel pit installation reflects the contractors' concern about the geographical
separation of the twelve fuel pits as well as the discontinuous installation phases. 
The fuel system component prices were affected by fuel prices and small component quantity
when compared to previous fuel contracts. 
The two lowest bidders were within $390,000 of each other, which appears representative of
the competitive value of the work according to the marketplace.
Based on the reasons stated above, Port staff believes the low bid represents a fair and reasonable
price.
Moving forward with this project will ensure the various elements of work can be accomplished during
the dry summer season within the secure airfield area. Having one contractor coordinate all of the
work minimizes coordination aspects and disruptions to ongoing aircraft operations. A project labor
agreement will be used on this project to help ensure the work is completed before the end of the dry
weather season.
BACKGROUND: 
Starting in 2009, Airport staff conducted a visual survey of pavement on the airfield, to determine
which pavement needed replacing, and in what priority. Work in 2012 will focus on replacing
deteriorated panels on both non-runway areas and Runway 16C/34C. Pavement joint seals will also be
replaced, to take advantage of the already closed areas. 
Many of the concrete pavements that are currently failing were originally installed as early as 1969
with an expected service life of 20 years. Typical degradation of the concrete is occurring. The
concrete and joint seal work must occur in phases to minimize impacts to airline operations. 
The airfield pavement replacement is part of a multi-year program to replace some of the worst
pavement and joint seal on the airfield in non-runway areas. The project will generally replace the
most critical pavement first, but will include other pavement sections when it makes sense. The
criticality and order of the pavement replacement may change over time, based on pavement
deterioration, operational impacts, and available funding. 
The Airline Realignment program will require a number of modifications associated with the airlines
that will relocate their gates, to effectively operate in their new locations. The airline realignment is
driven by airline mergers and the consolidation needs of Alaska Airlines which necessitates the
repositioning of gates, holdrooms, and ticketing positions throughout the Airport.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 4, 2012 
Page 3 of 6 
FINANCIAL IMPLICATIONS: 

Previous     Authorization
CIP            Authorization      Change     Revised Authorization 
C800112 Runway 16C/34C Slab
Replacement                  $5,650,000          $0          $5,650,000 
C102573 Airfield Pavement
Replacement 
(multi-year authorization)            $11,422,085      $915,000          $12,337,085 
C800472 Exterior Gate
Improvements                 $3,112,000     $552,000          $3,664,000 
Total                          $20,184,085     $1,467,000           $21,651,085 
Combined Contract/Project Cost Breakdown       This Request       Total Project 
Construction                              $1,327,000         $7,447,000 
Construction Management                    $217,000        $1,523,000 
Design                                 -$149,000         $445,000 
Project Management                        -$86,000        $389,000
Permitting                                  -$4,000           $5,000 
State & Local Taxes (estimated)                  $162,000          $691,000 
Total                                    $1,467,000        $10,500,000 
Budget Status and Source of Funds: 
All projects are included in the 2012  2016 capital budget and plan of finance. 
The airfield panel replacement project, CIP # C102573, is part of a multi-year program to replace
deteriorated pavement panels. The funding source will be existing revenue, and future, bond proceeds. 
The funding source for the replacement of panels on Runway 16C/34C, CIP # C800112, will be the
Airport Development Fund. 
The funding source for the Exterior Gate Improvements project, CIP # C800472, will be the Airport
Development Fund and existing and/or future revenue bonds. The budget increase of $552,000 will be
covered by a transfer from CIP C800411, Terminal Realignment, resulting in no net change to the total
airport capital budget.
Previous authorizations for Runway 16C/34C are adequate to still cover the project cost and no
additional funds are being requested. 
Snow Dump Pavement is a small jobs capital project and is included with the major capital projects for
coordination purposes. It has a total cost of less than $300,000 and funds were previously authorized
under the small jobs capital program.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 4, 2012 
Page 4 of 6 

Financial Analysis and Summary: 
CIP Category             New/Enhancement 
Project Type              Renewal & replacement 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        $1,467,000 (incremental amount) 
Business Unit (BU)          Airfield 
Effect on business performance  NOI after depreciation will occur 
IRR/NPV             N/A 
CPE Impact             By 2013, the combined effect of these projects will
increase CPE by less than $0.01.
STRATEGIC OBJECTIVES: 
Exterior Gate Improvements 
The Exterior Gate Improvements supports two of the Port's Strategies and Objectives. Notably, 
this project promotes the Port's strategic goals to "Ensure Airport and Seaport Vitality" and "Be a
Catalyst for Regional Transportation Solutions" by providing the airlines with the facilities and 
equipment to maintain performance. With numerous airlines relocating to other gate and ticket counter
locations, there are modifications that must be addressed for the airlines to effectively operate in their
new locations. The relocations will yield a more balanced facility, increasing through-put rates in a
finite sized terminal. There are a number of projects, which are directly tied to this One-Time
Reallocation (Airline Realignments) program, that are in concert with Alaska Air Group's Master Plan
to consolidate their gate operations onto the North Satellite and Concourse C. 
Runway 16C/34C Panel Replacement and Airfield Pavement Replacement These projects support the
Port's strategy to "Ensure Airport Vitality" by maintaining a safe operating environment as well as
maximizing asset utilization. 
ENVIRONMENTAL SUSTAINABILITY: 
These projects demonstrate environmental sustainability by improving existing Port assets and better
utilizing existing resources. Realignment will allow more effective use of terminal facilities and this
enables efficient operation for airlines at new locations. More sustainable operations of the Airport are 
expected to generate lower lifecycle costs of the needed investments. 
BUSINESS PLAN OBJECTIVES: 
Exterior Gate Improvements 
A number of airlines are projected to relocate operations. This will result in airline relocations to
different gates. This project will make necessary modifications to the gates to accommodate the airline
moves. Failure to make these proposed changes could negatively impact airline operations and
customer relations. 
Runway 16C/34C Panel Replacement and Airfield Pavement Replacement 
These projects support the Aviation Strategic Goals in the Business Plan Objectives: operating a
world-class international airport by ensuring safe and secure operations, meeting the needs of tenants,

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 4, 2012 
Page 5 of 6 
passengers and the region's economy and managing Port assets to minimize the long-term total cost of
ownership. 
TRIPLE BOTTOM LINE SUMMARY: 
Exterior Gate Improvements 
This project will increase the long-term ability of the Airport to serve a growing number of passengers
and airlines. Long-term vitality of the Airport benefits the regional economy, the local environment,
and nearby communities. 
Runway 16C/34C Panel Replacement and Airfield Pavement Replacement 
Replacement of concrete pavement panels and joint sealant are a financially responsible way to insure
continued access to the gate areas for the airline tenants and continued gate availability for the
traveling public. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Award Contract: Based upon our technical analysis of the factors which affected the bid prices and the
consistency of high bids across all the bidders, Port staff believes this bid price from Gary Merlino
Construction is fair and reasonable. Staff recommends the Commission authorize for contract award. 
Re-bid the contract: This alternative is not recommended. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
C102573  Airfield Pavement Replacement 
On January 24, 2012, the Commission authorized $4,707,000 and for Chief Executive Officer to
advertise and execute a construction contract that included Apron Pavement Replacement, Exterior
Gate Improvements, Runway 16C/34C Panel Replacement, and South Snow Dump Pavement
Expansion 
On July 26, 2011, the Commission authorized $465,000 and for the Chief Executive Officer to
complete the design and perform any advance work in support of the 2012 Pavement and Joint
Replacement and Sealant Project for non-runway concrete pavement panels, joint seal replacement,
spall repair, and associated or temporary facilities, such as striping, lighting, etc., on the Aircraft
Operations Area. On March 1, 2011, the Commission authorized $6,235,000 and for the Chief
Executive Officer to advertise and execute a construction contract that included slot drain,
pavement, and joint seal replacement at the South Satellite and perform installation of temporary
common use podiums and minor removal of hazardous materials through Port Construction
Services. 
On August 10, 2010, the Commission authorized $394,000 and for the Chief Executive Officer to
direct staff to: 1) proceed with project management, design, environmental support, and
preparation of 100 percent design level construction documents for the replacement of slot drains,
pavement and joint seal at the South Satellite at Seattle-Tacoma International Airport; 2) execute
and award outside professional service agreements; 3) pre-purchase common-use gate equipment;
and 4) allow Port Construction Services to self-perform, advertise for bids, and execute and award
small works construction contracts for common use equipment installation.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 4, 2012 
Page 6 of 6 
C800112  Runway 16C-34C Slab Replacement 
On July 26, 2011, the Commission authorized the Chief Executive Officer to modify the Scope of
Work for the Runway 16C/34C Surface Panel Replacement project by extending the project period
through the end of 2012, and approval of the use of $200,000 of the previously authorized funds to
prepare design documents for surface panel replacement construction contract to be advertised and
constructed in 2012. 
On February 9, 2010, the Commission authorized $5,650,000 for the design, advertisement, and
award of a construction contract for the 2010 Airfield Improvement Projects  Contract 1,
consisting of panel replacements on Runway 16C/34C.