Item 8b Memo

PORT OF SEATTLE 
MEMORANDUM 

COMMISSION AGENDA             Item No.          8b 
Date of Meeting     February 24, 2009 
DATE:    February 6, 2009 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    James Schone, Director Aviation Business Development 
Robert F. Riley, Director, Aviation Capital Improvement Program 
Richard Ottele, General Manager, Aviation Facilities and Infrastructure 
SUBJECT: Request authorization to construct the Second Floor Heating, Ventilation, and
Air-Conditioning Upgrades Project at Seattle-Tacoma International Airport at an
estimated project cost of $1,497,000.
ACTION REQUESTED: 
Request Port Commission authorization for construction and approval to advertise for
construction bids for the Second Floor Heating, Ventilation and Air-conditioning (HVAC) 
Upgrades project at Seattle-Tacoma International Airport (Airport) in the amount of $1,282,350
for a new estimated total project cost of $1,497,000. 
SYNOPSIS 
This memorandum requests authorization for construction and the approval to advertise for
construction bids for the Second Floor HVAC Upgrades project. This project provides a new
HVAC system to the north side of the second floor Main Terminal Central Administration
Building and the concessions located directly below on the ticketing level. The new air supply
for the HVAC system is provided from an air handler located in the Main Terminal that has
capacity to accommodate the subject areas. The provision of the new air supply will allow HMS 
Host (Host) to proceed with the construction of its new offices on the second floor. The
Commission previously authorized $214,650 to complete design on March 25, 2008. This
authorization for construction will increase the project authorization by $1,282,350 for a new
estimated total project cost of $1,497,000.
BACKGROUND 
The second floor of the Main Terminal Administration Building and the concession spaces
located immediately below in the central Main Terminal have an insufficient air supply to their
HVAC systems to support existing and planned occupancies and uses. The insufficient air
supply directly impacts the existing Host offices on the north side of the second floor as well as
the new space Host plans to relocate to also on the second floor (see Exhibit No. 1). Host's

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
February 6, 2009 
Page 2 of 6 
decision to move was to have more suitable office space regarding overall condition and
utilization, and this project will provide adequate air supply. Likewise, the existing and future
occupancy of concessions space located directly below on the ticketing level will receive
improved air supply (see Exhibit No. 2).
Following completion of the Central Terminal Expansion project, various improvements were
planned to the second floor of the 1949-vintage Administration Building including extending
utilities for the build-out by Host of its new offices. The original intent was to provide HVAC to
the space from excess capacity in the Central Terminal HVAC system. During the review
process for Host's new office space improvements, it became apparent that the Central Terminal
HVAC did not have the extra capacity and that a new source of air supply would be needed to
adequately serve the second floor of the Administration Building as well as the concession
spaces located directly below on the ticketing level. 
The Commission authorized $214,650 on March 25, 2008 to complete design of a new HVAC
air supply to the north side of the second floor of the Administration Building and the
concessions located directly below on the ticketing level through the construction of a new
HVAC system from an air handler located atop the Main Terminal that has the capacity to
accommodate the subject areas. The total estimated project cost at that time was $1,360,000. 
The project design is now complete. The Commission is being requested to approve the
advertisement for construction bids and to authorize funding for construction at a new estimated
total project amount of $1,497,000 inclusive of the previously approved amount. 
PROJECT DESCRIPTION/SCOPE OF WORK 
Project Statement: 
Construction of a new HVAC air supply duct system from a Main Terminal mechanical
penthouse air handler to the north side of the second floor of the Main Terminal Administration
Building which includes the new Host offices and the concession areas located immediately
below on the ticketing level. 
Project Objectives: 
Provide sufficient HVAC for the north side of the second floor including the planned
relocation of the Host offices (see Exhibit No.1). 
Provide sufficient HVAC for the pre-security Starbucks (CT-26), future full-service banking
facility (CT-25), and a future post-security concession space (CT-28) (see Exhibit No.2). 
Enhance ability to lease concessions space and generate non-airline revenue. 
Ensure no impact on the air supply to the existing police department offices supplied by the
same air handler.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
February 6, 2009 
Page 3 of 6 
Scope of Work: 
Construct a new HVAC air supply duct system to the north side of the second floor to
accommodate the new Host office space, existing Host cash room, and existing janitorial office
space. The project will also u tilize the new HVAC duct system to supply the ticketing level
concession spaces located immediately below. The current scope of work has deleted the
installation of a new main duct in the area Host will vacate when it moves to its new offices due
to Host deferring the construction of its new offices into 2010. Removing this work from the
project avoids delaying the entire project until Host can start construction or severely impacting
Host if the new duct is installed while Host still occupies its existing office space. This work
will need to be separately funded, authorized, and accomplished when the vacated Host space is
leased. 
This requested action authorizes construction and the approval to advertise for construction bids. 
STRATEGIC OBJECTIVES 
This project supports the Port strategy to "Ensure Airport and Seaport Vitality" through
upgrading spaces to leasable condition which will support the creation of new business
opportunities and enhancing product and service offerings for the traveling public, and
increasing non-aeronautical revenue. 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary 
Original Budget                                         $1,360,000 
Budget Increase                                           $137,000 
Revised Budget                                        $1,497,000 
Previous Authorizations this CIP                                 $214,650 
Current request for authorization                                 $1,282,350 
Total Authorizations, including this request                          $1,497,000 
Remaining budget to be authorized                                   $0

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
February 6, 2009 
Page 4 of 6 
Project Cost Breakdown 
Construction costs                                          $1,050,000 
Sales tax                                                     $93,000 
Outside professional services                                    $151,000 
Aviation PMG and other soft costs                               $203,000 
Total                                                    $1,497,000 
The total estimated project cost at the start of design was $1,360,000. Now at the completion of
design, the following items reflect changes that have increased the estimate by $210,000 since
the original concepts for the project were developed: 
1.  Elevated versus at grade/rooftop routing of the supply/return air ducts on the Main
Terminal roof to eliminate obstructions for rooftop maintenance/access;
2.  Modifications to the air handler system to maximize air flow capacity and efficiency for
the existing and future projects; and
3.  Installation of a temporary duct from an adjacent air handler to prevent disruption of
HVAC service to the police department offices on the third floor during construction. 
There is one project scope reduction of $73,000. Host has requested to delay the build-out and
occupancy of its new office space until 2010. Consequently, the HVAC work included in this
project for Host's current office space cannot be executed without major disruptions or delaying
the Port work for an undetermined period of time. This work will be deleted from the project.
When the vacated Host space is leased, the work will be reauthorized and accomplished.
Therefore, the net estimated project cost increase is $137,000. 
Source of Funds 
This project is included in the 2009-2013 capital budget and plan of finance as a business plan
prospective project under CIP C800249. Funding will be provided by the Airport Development
Fund.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
February 6, 2009 
Page 5 of 6 
Financial Analysis Summary 
CIP Category                Revenue/Enhancement 
Project Type                 Terminal Infrastructure 
Risk adjusted Discount rate        N/A 
Key risk factors                Unanticipated increased construction costs due to
market conditions 
Project cost for analysis           $1,497,000 
Business Unit (BU)             Aviation Business Development and Terminal 
Infrastructure 
Effect on business performance     NOI after depreciation will increase as 80% of capital
costs will be recovered through terminal rents. In
addition, the lease of the concession spaces will
generate non-airline revenue. 
IRR/NPV                N/A 
CPE Impact                CPE will increase by $0.01 in 2010; however, no
change compared to business plan forecast since this
project was included . 
ECONOMIC IMPACTS 
This project will support the use of limited terminal building space and allow for the lease of
additional concession spaces not currently in a condition for occupancy. 
ENVIRONMENTAL SUSTAINABILITY/COMMUNITY BENEFITS 
No impact to the environment is anticipated as a result of this project. The new HVAC system
will utilize existing capacity of a current air handler unit and will improve the indoor air quality
to existing and future office space and concessions. 
TRIPLE BOTTOM LINE SUMMARY 
This project will fulfill the Port's commitment to Host for acceptable office space, support new
economic opportunities by enhancing the concession program for the benefit of travelers, and
potentially generate additional non-airline revenue.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
February 6, 2009 
Page 6 of 6 
PROJECT SCHEDULE 
Bid Advertisement                       March 2009 
Contract Award                        June 2009 
Construction Start                         August 2009 
Construction Complete                     February 2010 
PREVIOUS COMMISSION ACTION 
The Commission authorized $214,650 on March 25, 2008 (Item 8c) to complete design of a new
HVAC air supply to the north side of the second floor of the Administration Building and the
concessions located directly below on the ticketing level for a total estimated project cost of
$1,360,000.

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