Exhibit A                                    ITEM NO: ______6a_Supp________ 
Port of Seattle Commission Regular Meeting
April 23, 2013                                DATE OF MEETING: _April 23, 2013_ 
Airline Rates and 
Charges Resolution 
First Reading 
April 23, 2013

History of Negotiation and Resolution
Development, 2011-2013 
12/11  5/12:  Negotiations with airlines re new lease 
6/12-8/12:    At airlines' request, developed preliminary outline
of Resolution and airline impacts 
8/12-10/12:   Pursued one-year or holdover lease agreement to
facilitate continued full negotiations 
10/12:      Alaska Airlines asserted legal requirement that
Port must set rates by Resolution, per federal
policy guidelines 
10/12-2/12:   Port staff preparation of Resolution (with
expectation of possible legal challenge) 
2/12:       Alaska Airlines indicates preference for lease 
2/12-4/13:    Continued discussion of possible lease terms

FAA Rates & Charges Policy 
In the absence of a lease, airports must follow
Federal Aviation Administration (FAA) policy in
establishing rates for airline use of airport 
Rates must be "reasonable" and "not unjustly
discriminatory" 
Port can charge fairly allocated costs of SEA facilities
airlines use 
Port can retain all non-airline revenue 
Port can retain full control of capital program 
Port will bear vacancy and enterprise risk

Key Provisions of Resolution 
Rates retroactive to January 1, 2013 
Rates established for multiple cost centers to
ensure that airlines appropriately pay for costs of
facilities they use 
Instead of single airfield fee, will segregate
movement, apron and commercial areas 
Instead of single terminal rate calculation, separate
cost centers for ticketing, gates, FIS/AIF, bag makeup
facilities, etc.

Key Provisions of Resolution 
Airlines rates established to fully  but only --
recover costs of aeronautical cost centers 
Operating costs associated with aeronautical facilities
and services 
Debt service coverage of 1.30x debt service 
Amortization of Port cash investments since 1992 
Port assumes risk of vacant aeronautical and
non-aeronautical space

Need for Current Commission Action 
Still hope negotiations will yield new lease 
However, lengthy lease execution process
requires action soon to complete by year-end 
Legal drafting 
Space exhibit finalization 
Airline legal and management review 
Lease execution 
Holdover 2012 rates recover $30+ million less
than 2013 costs

Need for Current Commission Action 
Commission passage of Resolution (First and
Second Reading) authorizes staff to: 
Calculate rates and charges in accordance with the
Resolution. 
Take appropriate steps to implement provisions of
Resolution 
If negotiations are unsuccessful, Commission
adoption ensures Port's ability to be fully
compensated for 2013 costs