PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA                      Item No.         5b 
ACTION ITEM 
Date of Meeting      November 5, 2013 
DATE:     October 25, 2013 
TO:        Tay Yoshitani, Chief Executive Officer 
FROM:    James R. Schone, Director, Aviation Business Development 
D. Michael Ehl, Director, Aviation Operations 
James Jennings, Manager, Aviation Properties 
SUBJECT:  Second Amendment to Fuel System Lease Agreement with SeaTac Fuel Facilities 
LLC 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to execute the Second
Amendment to Fuel System Lease Agreement with SeaTac Fuel Facilities LLC, substantially in
the form attached, to (1) reflect addition of hydrant pits associated with airline realignment at
Seattle-Tacoma International Airport, and (2) increase the rental rate associated with the lease in
accordance with the terms of the lease. 
SYNOPSIS 
Due to the airline realignment at the Airport, the gate aircraft parking layouts were changed. On
Concourses A, B, and D, and the South Satellite, the changes required that the fuel hydrant
system be expanded to include additional pits to ensure the continued safe fueling of aircraft.
The Second Amendment to the Lease with SeaTac Fuel reflects the addition of these 14 hydrant
pits to the fuel system (5 pits on Concourse A, 6 pits on Concourse B, 1 pit on Concourse D, and
2 pits on the South Satellite) in exchange for reimbursement of the costs of these fuel system
improvements. It also  documents the rental rate adjustment due June 1, 2012, pursuant to the
terms of the lease. 
BACKGROUND 
The Port leased the fuel tanks and the to-be-constructed underground hydrant system to SeaTac
Fuel (a consortium of airlines operating at the Airport) beginning May 14, 2003.  The fuel
system allows fuel to be delivered to aircraft through an underground pipeline system, rather
than by fuel trucks. To finance the improvements to the hydrant system, the Port issued special
facility bonds.   The lease calls for facilities rent payments from SeaTac Fuel to cover the
repayment of the special facility bonds.  The proceeds of the special facility bonds were fully
utilized on the initial construction of the hydrant system, thus the system improvements needed 
as a result of the airline realignment projects required alternate financing. These improvements
include the addition of 14 hydrant pits and underground piping to accommodate aircraft fueling

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 25, 2013 
Page 2 of 3 
based on the updated plane parking layouts of gates on Concourses A, B, and D and the South
Satellite that were necessitated by the realignment of airlines at the Airport. 
The lease allows for future extensions of the fuel hydrant system with mutual agreement.  In
exchange for the Port constructing the improvements, SeaTac Fuel agrees to reimburse the
construction cost ($2,285,208) over the life of the improvement (300 months), or the remaining
lease term (244 months), whichever is less, with a 6% amortization of the costs, which equates to
$16,233.15 per month, retroactive to April 1, 2013. 
Additionally, Paragraph 4.1(b)(ii) of the lease calls for re-adjustment of the base rent every five
years. T he adjustment was due June 1, 2012. T he parties have agreed on the base rent, which is
based on the Port's land appraisal and will be charged retroactive to that date. The negotiation of
this amendment has covered more than 18 months, largely due to the complexities associated
with added fuel system scope in Airline Realignment and cargo projects, as well as the
refinancing of the original fuel system bonds, which were completed in June 2013. 
LEASE SUMMARY COMPARISON 
Below is a comparison of the key business terms of the current lease and amended lease. 
Current Lease Terms               Proposed Amended Lease Terms 
Term                          5/14/2003  7/31/2033           Unchanged 
Premises (Square Feet)            464,842                           Unchanged 
Monthly Rent                   $42,610.52                      $49,389.46 
Additional Rent                   0                                  $16,233.15 
FINANCIAL IMPLICATIONS 
The Port will receive as additional rent $16,233.15 per month calculated as a rate of return of 6%
on the construction costs invested to extend the hydrant system. 
This amendment will also increase the annual base rent (land rent) payments due under the lease
to $592,673.55, an increase of $81,347.35 per year.
The rents received under this lease roll up as aeronautical revenues within the Airfield
Commercial Area, a compensatory cost center. 
STRATEGIES AND OBJECTIVES 
This action supports two Century Agenda objectives. The additional fuel pits added to the fuel 
system help the Airport meet the region's air transportation needs by making aircraft fueling
around the gates quick and efficient.  These pits also help reduce air pollutants and carbon
emissions from the fuel trucks that would otherwise be required to refuel aircraft.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 25, 2013 
Page 3 of 3 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Do nothing.  This would exclude the fuel hydrant system improvements from
the lease, effectively making them unusable, as well as forego the rent increase due the Port
under the lease. This is not the recommended alternative. 
Alternative 2)  Amend the lease, adding the additional hydrant pits required as part of the
airline realignment project and adjusting the rent per the previously agreed-upon base rent
adjustment terms. This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
Attachment 1 - Second Amendment to Fuel System Lease 
Attachment A  Site Plan 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
May 14, 2013 - the Port Commission passed Resolution No. 3504, authorizing the sale
and issuance of Special Facility Revenue Refunding Bonds. 
January 24, 2012 - the Port Commission authorized advertisement and execution of a
construction contract for the Exterior Gate Improvements project (C800472) at Seattle-
Tacoma International Airport in the amount of $2,613,000 as part of a larger package of
airfield projects. 
September 12, 2011 - the Port Commission received a summary briefing on the Airport
Realignment Program at Seattle-Tacoma International Airport. 
June 14, 2011 -  the Port Commission authorized design of the Exterior Gate
Improvements-Airline Realignment project (C800472) at Seattle-Tacoma International
Airport in the amount of $499,000. 
February 22, 2011 - the Port Commission was shown a summary listing of realignment
projects and authorized Planning for Terminal Realignment in the amount of $713,000. 
January 25, 2011 - the Port Commission was given an overview of the airline realignment
and authorized design and construction of the Concourse D Common Use Expansion
Project (C800455) in the amount of $4,250,000. The Commission was also briefed on the
Airline Realignment Program as part of this item. 
September 28, 2010 - the Port Commission was given a summary briefing of the
upcoming 2011 capital improvement plan that included the airline realignment program
elements. 
The Port Commission has approved one previous lease amendment for land rental rate
adjustment.