PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6c 
ACTION ITEM 
Date of Meeting    November 5, 2013 
DATE:    October 28, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   David Soike, Director, Aviation Facilities and Capital Program 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  C60  C61 Baggage Handling Systems Modifications Project at Seattle-Tacoma
International Airport (CIP #C800168) 
Amount of This Request:       $10,075,825   Source of Funds:  Airport Development
Fund and future
Est. Total Project Cost:         $11,864,825 
revenue bonds 
Est. State and Local Taxes:        $722,000 
ACTION REQUESTED
Request Commission authorization for the Chief Executive Officer to: (1) adjust the scope of
work for the construction of the C60-C61 Baggage Handling System (BHS) Modification Project
at Seattle-Tacoma International Airport to meet airline and TSA needs; (2) advertise, award, and
execute a major public works contract for the construction of the project; and (3) authorize the
use of Port crews in support of the project and for removal of regulated materials. This request
of $10,075,825 is in addition to the $1,789,000 that was previously authorized for a total project
authorization of $11,864,825. 
SYNOPSIS 
This project implements upgrades to the baggage handling system that serves the Airport's A
Concourse and South Satellite. It increases baggage make -up capacity, replaces outdated drive
technology, and updates computer systems to accommodate current, critical capacity needs on
the C60-C61 system. The project was approved by an airline majority-in-interest ballot in March
2012, and was included in the 2014  2018 capital budget and plan of finance. 
Although the Commission earlier approved a long-term, terminal-wide baggage optimization
project in cooperation with the Transportation Security Administration (TSA), this C60-C61
baggage project is still necessary for two reasons. First, the project is necessary to make nearterm
system improvements that cannot be completed by optimization because it will be several
years before system-wide optimization is completed and can alleviate the capacity needs of this
individual baggage system. C60-C61 is the Airport's oldest outbound individual baggage system
and transports over 3 million bags per year. The existing computer hardware and software is
aging and must be upgraded to improve near-term system performance to meet current airline

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 28, 2013 
Page 2 of 6 
needs.  System performance must be increased because airline realignment added United
Airlines (and merged Continental Airlines) onto the system, increasing baggage load on C60-
C61 from 29% to 35% of total Airport baggage load. Second, the project is necessary to add
baggage make-up device capacity that has been requested by Delta Airlines to enable them to
support next year's added flights at the Airport.
The scope of work for the project has been adjusted with additions and deletions to meet both
airline and TSA needs as noted in the scope section of this memorandum. The net effect upon
the budget of this project of these scope adjustments is $895,825 as noted in the scope and
financial sections of this memorandum.
Approximately 45% of the cost of this project is expected either still to be in place, or has the
potential to be reused within the later optimization project. The majority of remaining cost is the
computer hardware and software. Hardware and software typically have a relatively short
lifespan, and would not be reusable for the larger and reconfigured baggage optimization project.
However, the new C60-C61 hardware and software will last until the optimization project is
operationally linked up with C60-C61 in approximately 5 to 10 years 
BACKGROUND 
The C60-C61 systems were in the process of being assembled as part of the South Terminal
Expansion Program (STEP) including construction of Concourse A when the events of
September 11, 2001, occurred. As a result, the bag screening capability of C60-C61 was
dramatically and rapidly built to meet federal requirements while those requirements were still
being developed. C60-C61 was one of the first operational in-line baggage scanning systems in
the country. New federal screening requirements have continued each year since the system was
built, but operating agreements with local TSA management enabled us to operate the system in
an interim condition with only a few refinements.  The system is aging and is in need of
refurbishment to meet airline operational demands.
Collaborative work with the TSA has enabled adjustment of the scope of this project to be only
what is necessary  for shorter-term operational needs.  This is in  consideration of the
Commission's  authorization of  a long-term,  terminal-wide program for baggage system 
optimization.  Some longer-term scope elements have been shifted to optimization, while
shorter-term ones remain in this C60-C61 project. The scope of this project will meet the
demands of airlines' current needs over the next five years with operational performance and
reliability improvements.
PROJECT JUSTIFICATION AND DETAILS 
The work planned is a critical component in providing improved operational baggage in-line
screening for the south end of the Airport to meet airlines' current growth demands and
performance requirements.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 28, 2013 
Page 3 of 6 
Project Objectives 
Increase baggage make-up capacity for airlines 
Improve efficiency and maintain reliability throughput of the baggage system to benefit
the Airport and airlines by serving a growing number of passengers 
Scope of Work 
The scope of work for the project has been adjusted with additions and deletions to meet both
airline and TSA needs.  The airlines have requested added make-up device capacity with
baggage tug access to meet growing baggage volume associated with added flight activity.
Make-up devices have an estimated lifespan of 15 years and these particular make-up devices
will still be used after the later optimization project is completed. The TSA has requested that
the Checked Baggage Resolution Area (CBRA) be deleted from the scope and instead moved to
the future optimization project. This change meets longer-term TSA goals, which enabled the
previously approved grant for optimization to be increased by approximately $7 million.
Airport staff have determined that it is necessary replace aging Automatic Tag Readers (ATR's)
that read bag tags used to track and direct bags to the appropriate make-up device to be loaded
onto each airline's correct flight. New ATRs have improved read rates that minimize mistracked
bags and thereby minimize costs for airlines.  New ATRs have estimated lifespans of
approximately eight years and can be relocated and reused elsewhere if necessary for the later,
more comprehensive, optimization project. Airport staff and the TSA have cooperated to find a
way to avoid relocating TSA-owned Explosive Detection System (EDS) machinery so that it has
to be moved only once later when necessary for the optimization project. The net effect upon the
budget of this project of these scope adjustments is $895,825 as noted in the financial section of
this memorandum. 
Specific work includes: 
Port crews will install new C60 make-up device to increase make-up capacity. 
Port crews will manage any incidental regulated materials management. 
Relocate and expand existing C61 make-up device to increase make-up capacity. 
Demolish unused conveyor equipment. 
Remove and replace outdated Variable Frequency Drives (VFD) technology. 
Replace the existing obsolete C60 and C61 computers, which are no longer supported by
the manufacturer, with a new combined upper level control system in one location. 
Provide comprehensive system baggage reporting capabilities. 
Incorporate new server and networking standards into the baggage handling computer
system. 
Provide new Facility Monitoring System (FMS) tie-ins to improve fault monitoring
capabilities. 
Upgrade outdated programmable logic controllers (PLC) program. 
Replace existing 10-head Automatic Tag Readers (ATR) with 12 head ATRs to improve
read rate and system performance and reduce manual encoding requirements.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 28, 2013 
Page 4 of 6 
Schedule 
Authorize Construction Contract        November 2013 
Advertise                       December 2013 
Construction Start                  February 2014 
Project Completion                 December 2014 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                     $10,969,000         $0   $10,969,000 
Budget Increase                        $895,825         $0     $895,825 
Revised Budget                     $11,864,825         $0   $11,864,825 
Previous Authorizations                 $1,789,000          $0    $1,789,000 
Current request for authorization            $10,075,825          $0   $10,075,825 
Total Authorizations, including this request    $11,864,825          $0   $11,864,825 
Remaining budget to be authorized               $0         $0         $0 
Total Estimated Project Cost              $11,864,825         $0   $11,864,825 
Project Cost Breakdown                     This Request       Total Project 
Construction                                $7,940,859         $7,940,859 
Construction Management                     $1,149,000         $1,149,000 
Design                                       $0         $1,273,825 
Project Management                         $199,966          $715,141 
Permitting                                   $64,000           $64,000 
State & Local Taxes (estimated)                   $722,000          $722,000 
Total                                     $10,075,825        $11,864,825 
Budget Status and Source of Funds 
This project was included in the 2014-2018 capital budget and plan of finance as a business plan
prospective project, CIP #C800168. The budget increase results from the net change of adding
ATRs and eliminating scope for the CBRA. The source of funds for this project will be the
Airport Development Fund and future revenue bonds. The plan of finance assumes a revenue
bond issue will be needed in 2014 to fund this and many other projects. A TSA grant is no
longer included in the funding plan for this project as the grant will be reprogrammed to the
Baggage Optimization project.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 28, 2013 
Page 5 of 6 
Financial Analysis and Summary 
CIP Category             Renewal/Enhancement 
Project Type              Security 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        $11,864,825 
Business Unit (BU)          Terminal 
Effect on business performance  NOI after depreciation will increase 
IRR/NPV             N/A 
CPE Impact             CPE will increase by $.10 in 2015.
Lifecycle Cost and Savings 
The renovation of existing baggage systems in this project will decrease the risk of unforeseen
failures of aging equipment that can create operational challenges. The renovations will increase
make-up capacity and increase availability (operational up-time as a result of newer components
with less risk of failure), but the renovations will not appreciably decrease the number of
preventative maintenance activities performed on the systems. 
STRATEGIES AND OBJECTIVES 
This project promotes the Port's Century Agenda objectives to make Sea-Tac Airport the West
Coast "Gateway of Choice" for international travel, meet the region's air transportation needs at
Seattle-Tacoma International Airport for the next 25 years, and encourage the cost-effective
expansion of domestic and international passenger and cargo service. 
TRIPLE BOTTOM LINE 
Economic Development 
This project will increase the long-term ability of the Airport to serve United Airlines who has
moved onto the system, and to serve Delta Airlines' future growth. This project improves the
efficiency of the existing systems and adds long-term make-up capacity.
The Office of Social Responsibility (OSR) will provide support in determining small business
participation, as described in the small business Resolution No. 3618. The project manager will
work with the Office of Social Responsibility (OSR) to determine small business participation
opportunities, in accordance with Resolution No. 3618. 
Environmental Responsibility 
The project demonstrates environmental sustainability by improving existing Port assets to
extend their life and better utilizing existing resources.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 28, 2013 
Page 6 of 6 
Community Benefits 
This project will increase the capacity of future airline growth. Long-term vitality of the Airport
benefits the regional economy, the local environment, and nearby communities. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Do nothing. This would not address Delta's urgency to increase the baggage
handling efficiency and make-up capacity to meet their current growth.  This is not the
recommended alternative. 
Alternative 2)  Proceed with the original scope and address all of TSA, Port, and airline
concerns. The capital expenditures associated with the TSA's CBRA would be discarded within
the next five years in the Baggage Optimization project.  This is not the recommended
alternative. 
Alternative 3)  Perform the modifications to install and expand C60-C61 make-up devices to
increase capacity, upgrade the computers and PLC equipment, and replace the ATRs to increase
reliability and performance of the baggage systems. This alternative does not include the TSA's
CBRA work; instead it is to be provided elsewhere in the Airport within the later and separate
Baggage Optimization project. The capital expenditures within this scope are expected to serve
more than five years, and many components may be reused within the Baggage Optimization
project. This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
May 22, 2012  Authorization for Design 
August 6, 2013  Checked Baggage Recapitalization/Optimization Project Briefing 
August 20, 2013  Checked Baggage Recapitalization/Optimization Project Follow-up
Briefing 
September 10, 2013  Checked Baggage Recapitalization/Optimization Project Funding
Authorization