COMMISSION 
AGENDA MEMORANDUM                Item No.       6b 
ACTION ITEM                   Date of Meeting    October 25, 2016 
DATE:    October 19, 2016 
TO:     Ted Fick, Chief Executive Officer 
FROM:   James Schone, Director, Aviation Business Development 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  Concourse B Gate Reconfiguration  Gates B3-B9 (CIP #C800873) 
Amount of this request:         $12,075,000 
Total estimated project cost:      $12,150,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to: (1) authorize $7,380,000
of capital spending via a Tenant Reimbursement Agreement (TRA) between the Port and Delta
Air Lines, Inc. (Delta) for the design and construction of two new passenger boarding gates and
reconfiguration of four existing gates on Concourse B at Seattle-Tacoma International Airport;
(2) execute a TRA with Delta for this purpose under the Airport's AV-2 Policy, (3) authorize an
additional $4,695,000 of capital spending for Port utility and support infrastructure work
associated with this project and other Port costs, and (4) authorize a $500,000 budget transfer
from this project to the Concourse B 400 Hertz Upgrade project (C800019) and authorized that
project to execute a construction contract change order for up to $500,000. This request seeks
a single Commission authorization to approve the TRA and authorize design and construction of
the associated work, transfer budget and execute a change order, pursuant to Section 2.5.1 and
Section 4.2.3.1 of the General Delegation of Authority. The total cost to the Port for this project
is $12,150,000. 
EXECUTIVE SUMMARY 
Delta has proposed a tenant project to add gate capacity at Concourse B by converting widebody
gates to also handle narrow-body aircraft. On Concourse B, Gates B3, B5, B7, and B9 are
currently configured for wide-body aircraft operations. By their nature, wide-body aircraft take
up more room than narrow-body aircraft. This project will provide additional capacity and
flexibility to allow up to six narrow-body aircraft to park at these same four gates when widebody
operations are not required. 
JUSTIFICATION 
This project supports the Century Agenda objective of meeting the air transportation needs at
Seattle-Tacoma International Airport by providing cost-effective expansion of domestic and

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                       Page 2 of 6 
Meeting Date: October 25, 2016 
international passenger capacity. The project does so  by allowing Delta to construct the
majority of the project using a TRA with Delta under the AV-2 policy. 
Airport gate availability is at maximum capacity several times each day. As airlines continue to
add flights, more flights will need to arrive and depart from remote hardstand parking areas.
Since hardstands are located some distance from the terminals, passengers have to be bused to
and from the terminal building. As this is less desirable for airlines and passengers, taking
actions to minimize hardstand operations is a priority for the Airport. This also becomes
critically important in the short term as a number of aircraft gates will need to be removed
from service to support construction of the International Arrivals Facility and the North Satellite
projects. 
In addition to providing cost and schedule efficiencies, this project meets the following Airport
business objectives: 
(1) To create additional aircraft parking capacity through the efficient use of existing
terminal facilities. 
(2) To improve the passenger experience by reducing the need to bus passengers to and
from remote parking areas. 
In partnership with Delta Air Lines, the Port of Seattle's Economic Development Division's Small
Business Team and the Port's Aviation Project Management Group will be collaborating with
Delta throughout the project to encourage small business participation to the fullest extent
possible.
Scope of Work 
This proposed scope of work includes: 
(1) Adding one new passenger loading bridge (PLB) and fixed walkway section to create a
new aircraft boarding Gate B7-A on Concourse B. 
(2) Relocating the PLB currently installed at Gate B5 to create the new Gate B5-B and
adding a new PLB and fixed walkway in its place to create Gate B5-A. 
(3) Constructing two new gate entry doors for the newly created Gates B5-B and B7-A
inside Concourse B with associated security and monitoring equipment, passenger
check-in counters and other necessary electrical and communications infrastructure. 
(4) Replacing the existing, shorter PLBs at Gates B7 and B9 with new, longer ones that will
be able to reach aircraft in a greater variety of parking configurations. 
(5) Adding new and augmenting existing infrastructure and gate support equipment (such
as Pre-Conditioned Air, 400Hz ground electrical power, and IWS) to accommodate
additional aircraft operations.
(6) Reconfiguring aircraft parking positions to provide for additional aircraft operations. 


Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                       Page 3 of 6 
Meeting Date: October 25, 2016 
Work associated with this request that is being funded separately includes: 
(1) $3.1 million for the installation of 5 new fuel pits to support the revised gate layout. This
scope of work will be completed by the 2017 Fuel System Modification project that was
authorized by Commission on September 13, 2016. 
Funding included in this request that is not part of Delta's TRA scope of work includes: 
(1) $500,000 in funding to be transferred to the Concourse B 400Hz Upgrade Project that
was approved by Commission on December 8, 2015. This project will provide the
additional aircraft ground power infrastructure necessary to support the two new gates
being added by Delta. 
(2) $1.75 million in funding for modification of the Industrial Waste System (IWS). This work
is necessary to bring the existing ramp IWS up to current fire code as well as to prevent
potential spills of fuel and deicing agent from entering the storm drain system. This
work is scheduled to occur in 2018. 
Schedule 
Activity 
Commission authorization               2016 Quarter 4 
Construction start                      2017 Quarter 1 
In-use date                          2017 Quarter 3 
Cost Breakdown                         This Request       Total Project 
Design                                   $837,000          $837,000 
Construction                              11,313,000         11,313,000 
Total                                      $12,150,000         $12,150,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do not construct the Concourse B Gate Reconfiguration Improvements. 
Cost Implications: No cost to the Port. The estimated cost of the project and five new fuel pits,
$13,500,000, would be avoided. (The $1,750,000 of IWS modification work would still need to
be completed.) 
Pros: 
(1) Maintains maximum number of wide-body gates during peak volume. 
(2) Eliminates one additional construction project during a time where significant
construction will be occurring with IAF and NorthSTAR, reducing airfield congestion. 
(3) No capital funding costs are associated with this alternative.
Cons: 
(1) Does not provide additional narrow-body parking positions during narrow-body peak
times. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                       Page 4 of 6 
Meeting Date: October 25, 2016 
(2) Increases the number of flights that will need to operate from a hardstand with
passengers being bussed to and from the terminal. 
(3) Does not provide an important airline, Delta, a key operational resource they are
requesting. 
This is not the recommended alternative. 
Alternative 2  Port to construct the Concourse B Gate Reconfiguration Improvements project. 
Cost Implications: $14,840,000. 
Pros: 
(1) Follows a more traditional Port process (procurement and design/construction) while
providing increased gate capacity. 
(2) Would not require a TRA with Delta while providing increased gate capacity. 
(3) Would not require Delta to lease these gates. The gates would be common use and
available to all airlines. 
Cons: 
(1) Takes four months longer to design and construct than preferred Alternative 3. The
gates will not be ready during a time of highest need. 
(2) Costs more to construct than preferred Alternative 3. 
This is not the recommended alternative. 
Alternative 3  Delta to construct the Concourse B Gate Reconfiguration Improvements project,
except for the fuel pits, which are required to be constructed by the Port, and IWS modification,
which would also be constructed by the Port in 2018. 
Cost Implications:  $12,150,000 ($7,380,000 Delta reimbursement, $1,750,000  for IWS
modifications and $3,020,000 Port project cost). 
Pros: 
(1) Construction can be completed and the reconfigured gates put into service more quickly
because of Delta's willingness to proceed at risk with project design and equipment
procurement. 
(2) Provides increased flexibility and additional contact gate capacity when needed. 
(3) Reduces the need to rely on hardstand operations. 
Cons: 
(1) Because Delta is proceeding at risk with the design, there is a possibility that Port
standards may not be fully incorporated into the design until much later in the review
and approval process, which could increase review time or require changes to the
design. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                       Page 5 of 6 
Meeting Date: October 25, 2016 
(2) Potential concerns from the labor and contracting communities that a tenant, rather
than the Port, is performing public work. 
(3) Previous TRAs have not included Small/Minority/Woman-Owned Business Enterprise 
requirements based on internal business and legal concerns. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary          Capital      Expense        Total 
COST ESTIMATE 
Original estimate                      $10,400,000          $0   $10,400,000 
Current change                      $1,750,000          $0    $1,750,000 
Revised estimate                     $12,150,000          $0   $12,150,000 
AUTHORIZATION 
Previous authorizations                    $75,000          $0      $75,000 
Current request for authorization          $12,075,000          $0   $12,075,000 
Total authorizations, including this request    $12,150,000          $0   $12,150,000 
Remaining amount to be authorized             $0         $0         $0 
Annual Budget Status and Source of Funds 
This project is a proposed new project in the 2017  2021 capital budget and plan of finance,
with an estimated cost of $10,400,000. The cost increase is due to the recently discovered need
to address IWS system deficiencies. The funding sources will include the Airport Development
Fund and future revenue bonds to be issued in 2017. 
Financial Analysis and Summary 
Project cost for analysis         $12,150,000 
Business Unit (BU)            Terminal Building, but also includes Gate Utilities and
Passenger Loading Bridges and Apron Area cost centers. 
Effect on business performance   NOI after depreciation will increase. 
(NOI after depreciation) 
IRR/NPV (if relevant)           N/A 
CPE Impact                $0.03 increase in 2018 
Future Revenues and Expenses (Total cost of ownership) 
Average annual Operations and Maintenance costs for a Port-owned PLB is $23,000 (including
Pre-Conditioned Air and 400Hz ground electrical power). Over the course of a 25-year expected
asset life this equates to $575,000 per loading bridge. Since this project adds two additional
bridges at Concourse B this will be a new cost to the Port in the operating budget starting in
June 2017. Due to the fluctuating number of gates that will be in operation over the next

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                       Page 6 of 6 
Meeting Date: October 25, 2016 
number of years as major projects progress, the overall impact on the Aviation Maintenance
Department's budget of adding these two bridges is unknown at this time. 
ATTACHMENTS TO THIS REQUEST 
Computer slide presentation. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None 















Template revised September 22, 2016.