PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6b 
ACTION ITEM 
Date of Meeting      May 17, 2016 
DATE:    May 11, 2016 
TO:     Ted Fick, Chief Executive Officer 
FROM:    Mike Tasker, Senior Manager, Aviation Facilities & Infrastructure
SUBJECT:  Additional Space for Outbound Baggage within the International Arrivals Facility 
(CIP #C800836) 
Amount of This Request:       $18,500,000   Source of Funds:  Future Revenue
Bonds 
Est. Total Project Cost:         $18,500,000 
Est. State and Local Taxes:       $1,600,000 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to (1) approve the design and
construction of the Additional Space for Outbound Baggage Project in an amount not to exceed
$18,500,000 and (2) approve design and construction of the project scope to be completed via a
change order to a contract executed for an existing project; the International Arrivals Facility
(IAF) design/build contract. The total estimated cost of this project is $18,500,000. 
SYNOPSIS 
A major limitation of the baggage systems at Seattle-Tacoma International Airport (Airport) is
make-up capacity. The required space necessary for efficient make-up operations is not available
within the existing footprint. Two current projects, Baggage Optimization and NorthSTAR, will
create additional baggage make-up space; however, system capacity will still not meet
anticipated requirements in the near future. This project is the opportunity to add additional
space to the IAF at the ramp level that can be used to reduce outbound baggage constraints.
Adding this scope to the IAF program is the most cost effective and timely option to increase
baggage make-up capacity. In order to seize this opportunity, this scope of work must be
incorporated into the IAF program by June 30, 2016, when the design/build contractor procured
for the IAF will start procurement of structural steel and foundations which establish the shape
and scale of the IAF building. 
Executing this project will add the scope necessary to construct and reserve additional space for
outbound baggage, but it does not include design or installation of any baggage handling
equipment.  That scope will be detailed in coordination with evolving baggage handling
operations and the Baggage Optimization program. 

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 11, 2016 
Page 2 of 6 
This request also authorizes the design and construction of the project by the design/build
contractor procured for the IAF project. The rationale for choosing this delivery method is
simply pragmatic: 
The purpose of this project is to capitalize on the opportunity presented by the existing
South Ground Transportation lot development. Th at development is being performed by
the IAF design/build contractor.
BACKGROUND 
The outbound baggage system at the Airport is composed of four parts. 
1.  Input, where the bags are inserted into the system (e.g., ticket counters) 
2.  Screening, where the bags are scanned 
3.  Sortation, where the bag gets directed to the right airline 
4.  Make-up, where the bags are transferred to carts, going to the airplane 
The outbound baggage system's operational capacity can be constrained by any of these four. 
The Baggage Optimization project is currently designed for 45 Million Annual Passengers 
(MAP), with the ability to expand operations beyond that number in the future. Screening and
sortation for the baggage systems can be handled inside the existing footprint of the facilities yet
make-up devices will be constrained as there is not enough floor space in the existing facilities to
accommodate them. To accommodate baggage operations beyond 45 MAP additional useable
building footprint will have to be created in which to place make-up devices, and associated
conveyor systems. 
PROJECT JUSTIFICATION AND DETAILS 
Growth in airline traffic at the Airport has exceeded planning projections putting pressure on all
aspects of airport operations  gating aircraft, ticketing passengers, baggage screening and
handling. A major limitation of the Airport's systems today, and in the future, is make-up
capacity. Baggage make-up capacity is defined by the number of cart positions that can be staged
to transfer bags from the make-up device to carts that go to airplanes. As the number of
passengers and flights increase, the number of cart positions required to transfer the bags
increases as well. The required space necessary for efficient make-up operations is not available
within the existing footprint. Two current projects, Baggage Optimization and NorthSTAR, will
create additional baggage make-up space; however, system capacity will still not meet
anticipated requirements in the near future. 



Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 11, 2016 
Page 3 of 6 
Make-up position synopsis: 
(assumes carts parked with hitch in the raised or "tongue up" position for maximized count) 
Cart Staging                 MAP 
Shortfall
Timeline 
(Carts)       (Calculated
Positions 
Capacity) 
Available (Today)           322                   38.6 
Required (Today)           370         48         42.3 
Max Cap in Terminal         431                  49.8 
Required (Future)           473         42          54.0 
Proposed                481                   54.9 
Maximum capacity in the terminal is after Baggage Optimization, NorthSTAR, and an additional
baggage make-up device in South Satellite. 
Make-up capacity shortfalls are currently being addressed by operationally inefficient
workarounds, such as keeping transfers and bags for later flights out of the system. 
IAF is the only programmed new facility footprint that has the potential to be useable as
operational space for baggage make-up, as it connects to the ramp. It is anticipated that the IAF
space could provide at least an additional 48 cart positions. 
Project Objectives 
This project provides the opportunity to: 
Create floor space in the IAF that can be used for operational needs, increasing
operational flexibility within Airport's limited footprint 
Realize additional floor space that is operationally contiguous and balance the disparity
of cart positions on the south side of the airport 
Capture additional floor space without significant impact to the IAF schedule 
Reduce existing facilities constraint ahead of SAMP recommendations being
implemented 
Scope of Work 
This project directs a change to the included scope of a current, in-progress project, the IAF, in
order to reserve an area of approximately 40,000 square feet for future outbound baggage
handling expansion use. That space is made available by directing the IAF to consolidate and
relocate programmed US Customs and Border Protection (CBP) support and office space and
transfer baggage re-check screening from the ground/ramp by adding an additional floor and a
raised equipment platform.


Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 11, 2016 
Page 4 of 6 
In the short-term, approximately 35,000 square feet will be made available for new baggage
make-up at the completion of the IAF, currently scheduled for the third quarter of 2019. 
In the long-term, an additional approximately 5,000 square feet will be available to add to the
initial 35,000 square feet of outbound baggage make-up space when the in-progress Baggage
Optimization project completes its scheduled tie-in of the IAF re-check baggage to the central inline
system, currently scheduled for the third quarter 2023. 
Schedule 
In order to seize the opportunity presented here without delaying the in-progress IAF project, this
project must be incorporated into the IAF design prior to June 30, 2016, when procurement of
the foundations and structural steel are scheduled to begin. 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                     $18,500,000          $0   $18,500,000 
Previous Authorizations                       $0          $0          $0 
Current request for authorization            $18,500,000          $0    $18,500,000 
Total Authorizations, including this request    $18,500,000          $0    $18,500,000 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost             $18,500,000          $0   $18,500,000 
Budget Status and Source of Funds 
This project is not included in the 2016-20 capital budget and plan of finance. 
In the interest of expediting the project, the Port is electing to utilize the Discretionary Projects
budget as defined by Article 6.4 of the Signatory Lease and Operating Agreement (SLOA
III). Under this provision, the Port may categorize as exempt up to $30 million on new projects
that would otherwise require a MII vote. During the term of SLOA III the Port has not
previously used any of the Discretionary Projects budget. The funding source will be future
revenue bonds. The cost estimate for this project is $18.5 million and budget will be transferred
from the Aeronautical Allowance C800404 resulting in no net change to the Airport capital
budget. 




Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 11, 2016 
Page 5 of 6 
Financial Analysis and Summary 
CIP Category             Renewal and Enhancement 
Project Type              Renewal and Replacement 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        $18,500,000 
Business Unit (BU)          Terminal 
Effect on business performance  NOI after depreciation will increase 
IRR/NPV             N/A 
CPE Impact             CPE $.05 in 2024 
Lifecycle Cost and Savings 
This project adds additional square footage to the ground/ramp area by relocating other functions
to a mezzanine. The floor space created in this project will be part of the IAF building and will
not appreciably change the life cycle cost for that facility. 
STRATEGIES AND OBJECTIVES 
This project addresses the Port's Century Agenda strategic objective to advance this region as a
leading tourism destination and business gateway by making Seattle-Tacoma International
Airport the West Coast "Gateway of Choice" for international travel. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Accept status quo - continue labor intensive and inefficient methods to transfer
bags, for example, tail-to-tail (sorting bags on the ramp at the arriving aircraft and shuttling them
to the departing aircraft).
Cost Implications: Manpower intensive and lost/misconnected bags. Airline costs not quantified. 
Pros: 
(1) Saves $18.5M in current project costs 
(2) Provides opportunity for the SAMP to consider and prescribe solution 
Cons: 
(1) Strains the Airport's ability to sustain international service in a manner consistent 
with the Port's Century Agenda 
(2) Future operational requirements for baggage make-up go unmet and will constrain
Minimum Connect Time (MCT) 
(3) Loss of potential lease revenue for use of subject space 
This is not the recommended alternative. 
Alternative 2 - Add a pre-engineered building on the ramp to create additional operational
footprint. 

Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 11, 2016 
Page 6 of 6 

Cost Implications: $24M 
Pros: 
(1) Adds additional baggage make-up footprint to meet demand 
Cons: 
(1) Impacts/reduces number of operable gates 
(2) Constrains flexibility and volume of aircraft operations 
This is not the recommended alternative 
Alternative 3  Leverage IAF design and capacity to create additional operational footprint 
Cost Implications: $18.5M 
Pros: 
(1) Adds additional baggage make-up footprint to meet demand 
(2) Creates additional leasable space 
(3) Least cost new footprint option 
(4) No impact to gates or aircraft operations 
Cons: 
(1) Requires rapid decision process to take advantage of opportunity 
(2) Requires the expenditure of $18.5M that could be used for other purposes 
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
Computer slide presentation 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
April 26, 2016  IAF 1Q2016 Update 







Revised March 28, 2016  pjw