PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6c 
ACTION ITEM 
Date of Meeting      June 28, 2016 
DATE:    June 20, 2016 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Wayne Grotheer, Director, Aviation Project Management Group 
Eileen Francisco, Interim Director, Aviation Facilities and Capital Programs 
SUBJECT:  Early work package for North Terminals Utilities Upgrade Project (#C800717) 
Amount of This Request:        $7,271,000   Source of Funds:   Airport Development
Fund and Revenue
Est. Total Project Cost:         $21,335,000 
Bonds 
Est. State and Local Taxes:       $1,514,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to (1) increase the North
Terminals Utilities Upgrade (NTUU) project scope to include the creation of a piping loop to
provide redundancy; (2) increase the project budget by $11,385,000 for a revised total budget of
$21,335,000; (3) increase authorization by $7,271,000 for a new total of $9,271,000; (4) utilize
Port crews and small works contracts to perform construction work; and (5) authorize the
advertisement and award of a major works construction contract that will install the time critical
sections of the utilidor(s) portion of the project. 
SYNOPSIS 
This project will replace and extend the existing 45-year-old undersized steam, condensate and
chilled water supply and return piping from the Central Mechanical Plant to the North half of the
Airport. The existing piping  is undersized for current and future heating, venting and air
conditioning (HVAC) loads. This project is required to supply HVAC to Concourses C & D, the
expanded North Satellite that will be the result of that separate project, and the new north
terminal facilities that may be built under implementation of the Sustainable Airport Master Plan 
(SAMP). 
During the NTUU project 15% design development, the team developed a software model of the
future HVAC pipe routing in order to identify interferences with the future baggage conveyance
system to be constructed in the same area under the separate Baggage Optimization project. The
model identified the areas of conflict and assisted the designers in developing the optimum and
most constructible routing for the HVAC piping. The areas of severe congestion and conflict
between the NTUU project and baggage optimization projects are the primary drivers for this
early work project. This project installs the necessary HVAC piping utilidor(s) early to eliminate 

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 20, 2016 
Page 2 of 6 
known conflicts with Phase 1 construction of the Baggage Optimization project that will begin in
2017. Port staff and the designer identified  this early works project as the most viable 
alternative to improve the HVAC service on the C & D concourses and create the desired
capacity and redundancy prior to Phase 1 construction of the Baggage Optimization project. The
team has confirmed that attempting to install these utilidor(s) concurrently or after the Baggage 
Optimization phase 1 project is implemented will not be possible.
Completion of these piping system legs will complete a loop system and enable any part of the
airport terminal to operate HVAC systems while being supplied from either of the South, West
or North steam, condensate and chilled water supply and return loops creating full system
redundancy. This system redundancy currently exists for Concourses A, B and the South
Satellite. Completing this project will enable airport wide HVAC system redundancy for all
Concourses and the North Satellite. The original scope of work for this project could not have
been completed within the original project budget. 
BACKGROUND 
On April 28, 2015, the Commission authorized design of the NTUU project. The design
authorization included a provision for staff to return to Commission proposing the addition of
new scope to create a loop system if it became apparent during design that the creation of a loop
could be completed in a cost effective manner and with demonstrated corresponding benefits. 
PROJECT JUSTIFICATION AND DETAILS 
The existing 45 year old undersized steam, condensate and chilled water supply and return
piping, from the Central Mechanical Plant to the end of Mechanical Room Four then back to the
Central Mechanical Plant is not capable of adequately heating or cooling concourses C & D. The
same line will not have the capacity to support the planned expansion of the North Satellite nor
any additional north terminal development contemplated in SAMP. The 15% design effort
indicates that if portions of this project are not constructed prior to the Baggage Optimization
programs planned construction activities, the ability to create a loop in the future will be lost.
Furthermore, the existing piping does not provide a "loop" to the connection of the South and
West loops at the Central Terminal. 
Project Objectives 
Accelerate the design and complete the utilidor construction for the NTUU project ahead of the
Baggage Optimization program phase one construction. 
Accelerate design from 15% to 100% for the two time critical sections of the utilidor
portion of this project. 
Advertise and award a major works construction contract to install the utilidor(s). 
Complete utilidor(s) construction prior to and with minimal impacts to the Baggage
Optimization program phase one construction. 
Complete the remaining NTUU project design on the current schedule. 

Revised March 28, 2016  paw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 20, 2016 
Page 3 of 6 
Return to Commission and request authorization to advertise and award a major works
construction contract  for the remaining NTUU project elements on the current
schedule. 
Scope of Work 
Advertise and award a major works construction contract that will install two time critical
utilidor sections of the project (early works) and all required supporting infrastructure. 
Schedule 
Accelerated early works design complete                      3rd Quarter 2016 
Early works construction complete                          3rd Quarter 2017 
Remaining design effort complete                           2nd Quarter 2017 
Remaining project construction complete                      2nd Quarter 2019 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                     $11,950,000      $50,000   $12,000,000 
Previous budget adjustments              -$2,950,000     $900,000    -$2,050,000 
Current budget increase                 $11,299,000      $86,000   $11,385,000 
Revised Budget                     $20,299,000    $1,036,000   $21,335,000 
Previous Authorizations                 $2,000,000          $0    $2,000,000 
Current request for authorization            $7,036,000      $235,000    $7,271,000 
Total Authorizations, including this request     $9,036,000      $235,000    $9,271,000 
Remaining budget to be authorized         $11,263,000     $801,000   $12,064,000 
Total Estimated Project Cost             $20,299,000    $1,036,000   $21,335,000 
Project Cost Breakdown                      This Request       Total Project 
Construction                               $6,803,000        $17,821,000 
Design                                       $0         $2,000,000 
Sales Tax                                  $468,000         $1,514,000 
Total                                      $7,271,000         $21,335,000 
Budget Status and Source of Funds 
This project, C800717, is included in the 2016-2020 capital budget and plan of finance at an
estimated cost of $9,000,000. The capital budget increase of $11,299,000 will be transferred
from the Aeronautical Allowance C800404 resulting in no net change to the Airport capital
budget. The funding sources will be Airport Development Fund and future revenue bonds. 


Revised March 28, 2016  paw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 20, 2016 
Page 4 of 6 
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        $21,335,000 
Business Unit (BU)          Terminal 
Effect on business performance  NOE after depreciation will increase 
IRR/NPV             N/A 
CPE Impact             $.06 in 2019 
Lifecycle Cost and Savings 
The major assets this project will install are steam, condensate and chilled water piping, valves,
and connections. All of these assets have useful life spans of 25-30 years. 
STRATEGIES AND OBJECTIVES 
This project supports the Port's Century Agenda objective meeting the region's air transportation
needs here at Seattle-Tacoma International Airport for the next 25 years. This project will ensure
that HVAC demands are met in the existing and planned future north terminals. Fully functional
HVAC systems are critical to airport operations. 
This project has collaborated with the Economic Development Division to maximize small
business participation throughout the design process with Notkin Engineering, 15% of the design
effort will be completed by a small business partner working with Notkin and will continue that
collaboration during construction phase of this early work portion of the project. The project
team will coordinate with the small business program manager to maximize the participation of
qualified small business firms, in accordance with Resolution No. 3618. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Status Quo  Do not proceed with replacing and upsizing the existing 45-yearold
HVAC piping and do not proceed with designing and installing a redundant interconnecting
loop. 
Cost Implications: $500,000 in design costs would need to be expensed. 
Pros: 
(1)   No capital investment. 
Cons: 
(1)  The majority of the HVAC piping is over 45 years old and is approaching the
estimated service life. 
(2)  The HVAC services on Concourses C & D will not meet the expected passenger
comfort levels. 

Revised March 28, 2016  paw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 20, 2016 
Page 5 of 6 
(3)  The existing HVAC infrastructure does not support planned expansion of the North
Satellite footprint.
(4)  Does not support any new north terminal that may be built as part of the SAMP. 
(5)  Does not create system redundancy and the flexibility to supply HVAC from the
Central Mechanical Plant throughout the facility from either loop; any piping failure
creates an HVAC outage. The ability to add this redundancy in the future will be
lost due to infrastructure installed by the Baggage Optimization program' 
This is not the recommended alternative. 
Alternative 2  Replace and upsize the existing 45-year-old HVAC piping. Do not proceed with
designing and installing a redundant interconnecting loop. 
Cost Implications: $250,000 in design costs to date would need to be expensed. Estimated total
project cost $15,000,000. 
Pros: 
(1)  Reduced capital investment. 
(2)  Provides upgraded HVAC to Concourses C & D 
(3)  Provides the required HVAC infrastructure for the planned expansion of the North
Satellite footprint.
Cons: 
(1)  Does not support any new north terminal facilities that may be built by the SAMP. 
(2)  Does not create system redundancy and the flexibility to supply HVAC from the
Central Mechanical Plant throughout the facility from either loop (the ability to add
this redundancy in the future will be lost due to infrastructure installed by the
Baggage Optimization program) 
This is not the recommended alternative. 
Alternative 3  Replace and upsize the existing 45-year-old HVAC piping. Proceed with
designing and installing the required new utilidor(s) for a loop system, but do not install the new
utilidor(s) infrastructure piping. 
Cost Implications: Estimated construction costs to install "early work" utilidor(s) without piping
is $4,393,000. Estimated total project cost without new utilidor(s) piping is $18,500,000. 
Pros: 
(1)  Reduces first cost by deferring utilidor piping installation. 
(2)  Provides upgraded HVAC to Concourses C & D. 
(3)  Provides the required HVAC infrastructure for the planned expansion of the North
Satellite footprint.
(4)  Supports new north terminal facilities that may be built by the SAMP. (future $5M
project required) 

Revised March 28, 2016  paw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 20, 2016 
Page 6 of 6 
(5)  Creates system redundancy and the flexibility to supply HVAC from the Central
Mechanical Plant throughout the facility from either loop.; 
Cons: 
(1)  Highest final cost. (installing utilidor piping under a future contract will result in a
total system expenditure of approximately $23.5 million) 
This is not the recommended alternative. 
Alternative 4  Replace and upsize the existing 45-year-old HVAC piping. Proceed with
designing and installing the required new utilidor(s) for a loop system, and install  all
infrastructure piping.
Cost Implications: Estimated construction costs to install "early work" utilidor(s) and piping are 
$7,271,000. The estimated total project cost $21,335,000 
Pros: 
(1)  Provides upgraded HVAC to Concourses C & D. 
(2)  Provides the required HVAC infrastructure for the planned expansion of the North
Satellite footprint.
(3)  Supports new north terminal facilities that may be built by the SAMP. 
(4)  Creates system redundancy and the flexibility to supply HVAC from the Central
Mechanical Plant throughout the facility from either loop. 
Cons: 
(1)  Highest first cost. 
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
Computer slide presentation. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
April 28, 2015 (Item 4g.) Commission authorized $2,000,000 for the design phase of
the project. 




Revised March 28, 2016  paw