PORT OF SEATTLE 
MEMORANDUM 

COMMISSION AGENDA                   Item No.        6d 
Date of Meeting       May 11, 2010 
DATE:      April 20, 2010 
TO:         Tay Yoshitani, Chief Executive Officer 
FROM:     Dave Soike, Manager, Aviation Facilities and Infrastructure 
Michael Ehl, Director, Airport Operations 
Wayne Grotheer, Director Aviation Capital Improvement Program 
SUBJECT:  Centralized Pre-Conditioned Air Project at Seattle-Tacoma International Airport 
(CIP # C800238). 
This Request:  $36,830,000                    Source of Funds: Airport Development Fund 
FAA  AIP, VALE Grants 
Total Project Budget: $40,600,000               Sales Tax Paid: $2,972,000 
Grants Available:  $25,870,000                   Jobs Created: 120 
Net Cost to Airport: $14,730,000 
ACTION REQUESTED: 
Request Commission authorization for the Chief Executive Officer to advertise for bids, apply a
Project Labor Agreement (PLA) and to authorize Port Construction Services to perform preconstruction
work, including moving tenants, for Phase I and Phase II of the Centralized Pre-
Conditioned Air (PC Air) Project (CIP # C800238) at Seattle-Tacoma International Airport
(Airport) and execute a construction contract. A s eparate Notice to Proceed will be issued for
each phase (one contract with two separate notices to proceed) as Federal Aviation
Administration (FAA) funding becomes available. Award of each phase of the contract will be
contingent on grant funds authorized by the FAA. This authorization is for $36,830,000. 
Approximately $25,870,000 is expected to be funded through a Voluntary Airport Low
Emissions Program (VALE) Grant from the FAA, with the remaining $14,730,000 to be the
expected Port cost. The estimated total project cost is $40,600,000. 
SYNOPSIS: 
The PC Air project will allow flight crews to turn off aircraft auxiliary engines and plug in to the
Airport infrastructure to receive both heated and cooled air. This will lower costs to the airlines
while producing significant environmental benefits by reducing tens of thousands of tons of
carbon dioxide (CO2) emissions each year. This project is a cost effective way to aid the airlines
while improving the quality of the environment. The airlines have approved $31,087,000 for this

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
April 20, 2010 
Page 2 of 6 
project, most of which will now be covered by the FAA VALE grant. The cost per enplanement
is anticipated to increase by $0.12; however, these costs will be more than offset by decreased
airline operating costs. Application of a PLA is warranted to assure that the project schedule is
not disrupted by work stoppages, which could jeopardize the VALE grant funding and airplane
gating operations. Installation at each gate will take three days, which must be tightly scheduled
to avoid disrupting operations. Work stoppages would jeopardize this scheduling and potentially
increase airline costs. The VALE grant is contingent on completing the work within three years
of grant approval. 
BACKGROUND: 
While parked at a gate, an aircraft's heating and air conditioning is provided by either the
aircraft's on board Auxiliary Power Unit (APU) or a ground based supply system. Utilization of
the aircraft's APU is expensive. It also generates significant carbon dioxide (CO2) and other air
emissions. Currently, some gates at the Airport have a ground based (diesel powered mobile
cart) or electrical Point of Use (POU) system alternative to APU utilization. 
The dual goals of reducing environmental impacts and operating costs have led the staff to study
the feasibility of installing an airport-wide PC Air system. The study evaluated APU operating
costs versus three prevalent ground based supply systems, electrical POU, diesel powered mobile
carts, and a centralized system. The centralized system produced the most cost effective and
environmentally sound results. Estimates for the reduction of CO2 and other emissions were
calculated to be in excess of 69,000 metric tons per year.
FAA grant funding support for this project has been identified through the Voluntary Airport
Low Emissions (VALE) Grant Program. This program provides funding for up to 75% of
construction costs but excludes design and other soft costs. The project will be accomplished in
two construction phases in order to maximize the available VALE funds. Phase I will include
construction of the Central Plant, portions of the Chilled and Heated Water Distribution System,
purchase of the gate delivery equipment and installation of the gate delivery equipment to
selected gates. There are no pre-purchase items necessary. Phase II will complete construction
of the remainder of the Chilled and Heated Water Distribution System and the remaining PC Air
gate equipment. Phase I will be completed in early 2011, Phase II will be completed in 2012.
The FAA has programmed up to $30 million in grant funding for the project; however, we
anticipate using approximately $25,870,000. 
The use of a Project Labor Agreement is recommended for this project. The primary factors
contributing to the recommendation are the inclusion of a no-strike clause to avoid the potential
for work stoppage and subsequent impacts on airport operations and to the traveling public. This
is the largest Centralized Pre-conditioned Air project in the country. Installation of the PC Air
equipment at each gate will be difficult due to the nature of working around the airlines'
schedules. We will have windows of approximately three days to close down a gate and
complete installation. Prep work will be done on off hours when the areas are available. The

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
April 20, 2010 
Page 3 of 6 
most critical issue is to avoid a work stoppage while a gate is closed for installation. The gates
must be open as scheduled otherwise there will be an interruption of the airlines' schedules at
substantial cost. A work stoppage can also jeopardize FAA grant funding due to schedule
constraints, and the FAA has approved the use of a PLA on this project. There will also be a
substance abuse prevention program that will provide a safety benefit.
PROJECT DESCRIPTION/SCOPE OF WORK: 
Project Statement: 
Construct the PC Air system, with an associated central plant including individual PC Air gate
units at all passenger loading bridges. 
Project Objectives: 
Provide a PC Air System that will accomplish the following: 
Decrease the amount of energy used to heat and cool the aircraft. 
Significantly reduce the amount of CO2 and other air emissions produced. 
Provide aircraft with cabin heating and cooling while eliminating the need for using the
onboard APU, which consumes jet fuel. 
Minimize life-cycle costs.
Minimize fuel consumption.
Minimize ramp noise. 
Scope of Work: 
The PC Air project will provide temperature-controlled outside air to aircraft parked at
approximately 73 passenger loading bridges (the number of gates is dictated by the size of the
aircraft, smaller aircraft do not require PC Air). The system will include a central plant with
chillers and central ice storage, a distribution piping system, individual air handlers at each gate
that connect to the aircraft, and direct digital controls. The central plant will be connected to the
Airport's existing cooling chilled water system and direct digital control system. 
STRATEGIC OBJECTIVES: 
The PC Air project supports the following Port strategies: 
Ensure Airport Vitality: 
This project will provide a cost effective and efficient heating and cooling system for aircraft
parked at the gates. It will have a positive effect on the airline's operating costs by reducing fuel
consumption through reduced APU operation.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
April 20, 2010 
Page 4 of 6 
Exhibit Environmental Stewardship through Our Actions: 
This project significantly supports the Port's goal of becoming the cleanest, greenest and most
energy-efficient port in the United States, and will dramatically reduce CO2 emissions that are
generated by APUs. A centralized PC Air system is the most cost effective and energy efficient
long term means of providing preconditioned air to gated aircraft. 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary 
Original Budget                                     $31,087,000 
Budget Increase                                      $9,513,000 
Budget Transfers                                     $ 0 
Revised Budget                                    $40,600,000 
Previous Authorizations                               $3,770,000 
Current request for authorization                       $36,830,000 
Total Authorizations, including this request            $40,600,000 
Remaining budget to be authorized                    $ 0 
Project Cost Breakdown                       This Request      Total Project 
Construction costs                                   $31,528,000        $31,528,000 
Sales tax                                                  $2,972,000          $2,972,000 
Outside professional services                                    $0          $2,509,000 
Aviation PMG and other soft costs                     $2,330,000         $3,591,000 
Total                                                     $36,830,000         $40,600,000 
Source of Funds: 
This project (CIP # 800238) is included in the 2010-2014 capital budget and plan of finance.
The funding plan is predicated upon the Port receiving $25.87 million in VALE program grants,
with the remaining costs funded with revenue bonds to be issued in 2010 or 2011.  This project
was reviewed by the airline representatives and approved through a Majority-In-Interest vote in
June 2008. 
Financial Analysis Summary 
CIP Category                       New/Enhancement 
Project Type                         Infrastructure 
Risk adjusted Discount Rate          10% 
Realization of savings due to lower jet fuel usage.
Key risk factors 
Grant funding.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
April 20, 2010 
Page 5 of 6 
Project cost for analysis               $14,730,000 (excludes VALE grant funded portion) 
Business Unit                        Terminal cost center 
NOI after depreciation will decrease due to
recognizing depreciation on the full cost yet
Effect on Business Performance 
recovering capital costs for the non VALE funded
portion only. 
NPV range of net savings to airlines: $5 million to $30 
IRR/NPV 
million 
CPE will increase by $.12 in 2013; however, this cost
will be more than offset by decreased airline operating
CPE Impact 
costs. This project was included in our business plan
forecast so there is no change. 
From a financial analysis perspective, the positive net present value for this project is based on
viewing the Airport and airlines together, as the Port will incur capital and operating costs, while
the airlines will realize the cost savings. The extent of the savings is dependent on: 1) the price
of jet fuel 2) the number of days per year the system is actually used, and 3) the number of
carriers that use the system rather than their own POU system. The Airport will incur increased
Operations and Maintenance costs of about $800,000 per year. In addition, the Port will incur
annual debt service costs of about $1.2 million per year. The financial analysis assumes
$2/gallon for the price of jet fuel (recent prices have ranged from ~$1.50 to ~$3.50), PCA
System use during summer only (17 weeks) and it assumes Alaska Airlines and Southwest
Airlines continue to use their POU systems. These conservative assumptions generate a positive
NPV of $5 million and generate net savings to the airlines from the first year of operations. The
savings increase each year, making this a financially sound project.
ENVIRONMENTAL SUSTAINABILITY/COMMUNITY BENEFITS: 
There are significant air quality improvements achieved by installing a centralized preconditioned
air system. CO2 emissions and other emissions could be reduced by more than
69,000 metric tons per year, which represents 2% of emissions from aircraft at the Airport, and is
roughly equivalent to taking 13,500 cars off the road. Airport noise will also be reduced. 
TRIPLE BOTTOM LINE SUMMARY: 
This project is expected to help reduce the overall operating costs of the airlines while providing
an environmentally viable solution to maintaining comfortable aircraft cabin temperatures at the
gate. Decreased air emissions and decreased fuel consumption are consistent with the Port's
commitment to responsible environmental stewardship.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
April 20, 2010 
Page 6 of 6 
PROJECT SCHEDULE: 
The following is a list of key milestone dates for the Centralized Pre-Conditioned Air Project: 
Start Preliminary Design                                                      Feb 2009 
Complete Design                                                      Apr 2010 
Seek approval from Commission to advertise                                  May 2010 
Award Contract                                                       July 2010 
Anticipated Start Phased Construction                                          Oct 2010 
Anticipated Project Completion                                              Dec 2012 
ALTERNATIVES CONSIDERED/RECOMMENDED ACTION: 
Alternative 1 - Proceed with the Centralized Pre-Conditioned Air project. The system features a
central plant that efficiently shares the load for all gates and distributes cooling or heating as
needed. The system includes an ice storage system that allows the system to run at off peak
times increasing the energy efficiency. This is the recommended alternative. 
Alternative 2  Airlines continue using onboard APUs to heat and cool aircraft parked at the
aircraft gates. This method generates CO2 emissions from APUs, and uses a significant amount
of costly aircraft fuel to operate. It is not cost effective for airlines, and negatively affects the
environment. This is not the recommended alternative. 
Alternative 3  Proceed with a POU preconditioned air system installed at each passenger
loading bridge, which would be individual electrical driven units at each gate. This alternative
reduces CO2 emissions. However, this alternative is not the most cost effective on a first cost or
life cycle cost basis and would consume almost all of the spare power capacity available from
several power centers in the Airport's existing electrical distribution system. This is not the
recommended alternative. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST:
Map showing gates affected by the project 
PREVIOUS COMMISSION ACTION: 
On January 13, 2009, the Commission authorized procurement and execution of service
agreements with consultants to perform design; to prepare contract documents; and perform
contract administration for the Pre-Conditioned Air project at Seattle-Tacoma International
Airport in the amount of $3,770,000.