PORT OF SEATTLE 
MEMORANDUM 

COMMISSION AGENDA    Item No.   6c
Date of Meeting     February 9, 2010
DATE:   January 22, 2010
TO:     Tay Yoshitani, Chief Executive Officer
FROM:   Ralph Graves, Managing Director, Capital Development Division
Michael Ehl, Director Airport Operations
SUBJECT: Delta Air Lines Sky Club Lounge Regulated Materials Abatement project
Amount of This Request: $1,750,000      Source of Funds: Airport Development Fund
Sales Tax Paid: $126,169
ACTION REQUESTED: 
Request authorization for the Chief Executive Officer to execute and award outside professional
service agreements, advertise construction bids, and execute major construction contracts for the
Delta Air Lines (Delta) Sky Club Lounge Regulated Materials Management Abatement project
and authorize Port Construction Services (PCS) to self perform work in support of Delta's tenant
project at Seattle-Tacoma International Airport (Airport) in the amount of $1,750,000.
This authorization combines two steps of the Resolution No. 3605 process (authorization to
design and authorization to advertise and execute a contract) into one step to expedite the
regulated materials abatement project that must be substantially completed before Delta Air
Lines can start its construction work on the Sky Club Lounge tenant project. Delta currently
plans to open its Sky Club Lounge in December 2010.
SYNOPSIS: 
This memorandum requests authorization to advertise and award a Regulated Materials
Management (RMM) abatement contract and execute a contract for consultant oversight support
services for the Delta Air Lines Sky Club Lounge tenant project in the South Satellite Terminal
at Sea-Tac International Airport. This project is on an aggressive timeline, and this authorization
is requested so that contract advertisement can begin in order to enable timely award and
performance. The Sky Club project supports Delta's new planned additional international
services to Asia and Europe, and its potential opportunities for additional international routes to
the Airport. The project will be funded by the Airport Development Fund, and the costs will be
included in the airline rate base.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer
January 22, 2010
Page 2 of 5
BACKGROUND: 
Since acquiring Northwest Airlines in 2008, Delta has consolidated their gate operations at the
South Satellite. In conjunction with this move, Delta plans to build a new Sky Club Lounge for
their frequent flier and premium class customers. Delta will be responsible for constructing their
lounge. The proposed scope of work for this construction project will impact a variety of known
and suspected regulated materials, such as asbestos, in the South Satellite.
In November 2009, Delta presented a project schedule indicating a December 15, 2010, opening
of their Sky Club. Port staff reviewed Delta's schedule and requested additional time be added
to accommodate the Port project processes required to complete the regulated materials
abatement portion of the work. Subsequently, Delta and the Port initiated negotiations over
Delta assuming control and management of the Abatement project as a tenant project. On
January 29, 2010, the Port received confirmation that Delta would like the Port to retain control
of this work.
At this time Delta has not indicated a change in their project schedule to accommodate asbestos
abatement. In order to minimize any impact to their schedule the following is requested:
1.  The Port intends to begin the procurement process now, prior to receiving Delta's final
design documents for their lounge. 
2.  The estimated value of the project is $1.75 million based upon conceptual designs and
previous good faith surveys. We are preparing a unit price open order contract.
Depending on the actual asbestos encountered, cost may be less or more. 
Asbestos is a known human carcinogen. Federal, state and local regulations contain very strict
requirements for managing the disturbance, encapsulation, abatement and disposal of asbestos
containing and other regulated materials during construction activities.
From its inception in 1988, the Port of Seattle Regulated Materials Management (RMM)
Program has been tasked with the identification, management, abatement and mitigation of the
effects of the regulated materials that are known to be or are suspected to be present in Port of
Seattle facilities. Toward this end, the Port RMM effort encompasses global responsibility to
provide protection from the effects of asbestos exposure, to control the disturbance of asbestoscontaining
materials (ACM) during construction operations, and to minimize situations that may
cause the accidental release of asbestos fibers. The RMM Program also manages lead based paint
abatement, PCB light ballast removal, and hazardous mold inspections and abatement. The
primary concern of the Port RMM effort is the health and safety of Port employees, tenants,
consultants, contractors and the public.
Due to the size and complexity of the proposed scope of this work for the Delta Sky Club,
Government Accounting Standards Board (GASB) regulated materials compliance reporting and
monitoring by Port RMM personnel will also be required.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer
January 22, 2010
Page 3 of 5
PROJECT DESCRIPTION/SCOPE OF WORK: 
Scope of Work:
To date the following has been completed:
Regulated Materials Surveys, to identify potential asbestos locations based on Delta's 30% design
(Good Faith Survey) 
This project will consist of the following components: 
Regulated Materials Design Services, including abatement plans and specifications
Regulated Materials Abatement Cost Estimating
Regulated Materials Abatement, to remove regulated materials from the project site
Regulated Materials Abatement Project Quality Assurance Monitoring and Oversight
Inspection Services
Construction Management Support Services, including document review, environmental
reserve monitoring and project closeout assistance
Overall project and construction management oversight
STRATEGIC OBJECTIVES: 
Removing asbestos from the project site before work begins supports the Port's strategy to
"Exhibit Environmental Stewardship through our Actions." The Airport has a robust regulated
materials management program in place and this project continues its successful tradition.
FINANCIAL IMPLICATIONS:
Budget/Authorization Summary 
Original Budget                             $1,750,000
Budget Increase                                   0
Budget Transfers                                  0
Revised Budget                            $1,750,000

Previous Authorizations                               0
Current request for Authorization                   $1,750,000
Total Authorizations, including this request             $1,750,000
Remaining Budget to be Authorized                      0

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer
January 22, 2010
Page 4 of 5
Project Cost Breakdown 
Construction Costs                            $1,327,831
Sales Tax                                  $126,169
Outside Professional Services                       $100,000
Port Costs                                   $196,000
Total                                     $1,750,000
SOURCE OF FUNDS: 
This project will be accounted for as an environmental reserve project in accordance with Port
accounting policy AC-9. Since the triggering event will occur in 2010, this project was not
included in 2009 environmental reserves. As an environmental reserve project, the costs will be
accounted for as operating costs in 2010. The Aviation Division budgeted $700,000 for this
project in 2010 based on early estimates. The full costs will be incorporated into the terminal
rate base and 79.6% of the costs will be recovered from airline tenants through terminal rents.
The increased costs for this project will add approximately $.05 to passenger airline cost per
enplaned passenger (CPE) in 2010.
ECONOMIC IMPACTS: 
This project supports Delta Air Lines, one of the Port's key airline partners, as they expand
airline lounge services to support increased passenger traffic due to their merger with Northwest
Airlines and potential future domestic and international growth at Sea-Tac International Airport.
ENVIRONMENTAL SUSTAINABILITY/COMMUNITY BENEFITS: 
Removing asbestos from the Airport helps the Port provide a healthy and safe environment for 
employees, tenants, consultants, contractors and the public. This project also facilitates the
Port's ability to meet rigorous environmental standards for the removal of regulated materials
prior to the commencement of construction projects at Sea-Tac Airport.
TRIPLE BOTTOM LINE SUMMARY: 
This action allows the Port to satisfy legal environmental requirements for removing asbestos
containing materials from the Airport terminal before they become a hazard to the traveling
public, Port employees, tenants, consultants and contractors. This action supports the growth of
a major Airport tenant, Delta, which benefits the regional economy and traveling public.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer
January 22, 2010
Page 5 of 5
PROJECT SCHEDULE: 
The following is a list of key milestone dates for the Delta Air Lines Sky Club Lounge RMM
project.
Commission Authorization        February 2010
Design and Bid Advertisement      February to April 2010
Abatement Complete           August 2010
ALTERNATIVES CONSIDERED/RECOMMENDED ACTION: 
1.  The Port will prepare bid documents and advertise for contractors and Port staff to perform
the abatement work to support Delta's tenant project. The bulk of the abatement work must
occur before Delta can start their construction work and this may impact their schedule.
Despite this constraint, this is the recommended alternative because it ensures that the
abatement will occur.
2.  Leave the abatement work to Delta Air Lines and the Port will provide oversight only. This
would be the recommended alternative if the Port and Delta had reached agreement on the
particulars of the abatement requirements. However, this did not occur and per federal
regulations the Port must ensure that the abatement occurs before construction work begins.
Therefore, this is not the recommended alternative.
3.  Do nothing. Do not remove asbestos from the project site and do not provide RMM
oversight and support to Delta as they remove the regulated materials according to federal,
state and local regulations before starting their construction activities. The Port would not be
in legal compliance with environmental laws and would not be a responsible steward with
this option, shirking its legal and environmental responsibilities. This option does not reflect 
the Port's commitment to sustainable, safe facilities and is not the recommended alternative.
PREVIOUS COMMISSION ACTION: 
On February 2, 2010, the Commission was briefed on South Satellite Passenger Growth and
Facility Considerations, Delta's Proposed Airline Lounge and Other Possible Future Aviation
Projects.
ATTACHMENTS: 
None.