PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6c 
ACTION ITEM 
Date of Meeting      May 13, 2014 
DATE:    May 5, 2014 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Michael Ehl, Director, Airport Operations 
James Jennings, Manager, Aviation Properties 
Wayne Grotheer, Director, Aviation Project Management 
SUBJECT:  Airline Realignment Tenant Improvement Program - Reimbursement for Alaska
Airlines for Seattle-Tacoma International Airport 
Amount of This Request:          $0   Source of Funds:  Airport Development Fund 
Total Project Cost:         $1,025,000 
ACTION REQUESTED 
Request Commission authorization to expand the scope of the authorization for the tenant
reimbursement to Alaska Airlines associated with the airline realignment tenant improvement
program to include eligible project scope and costs.  No additional budget is required for this
project. 
SYNOPSIS 
In September 2012, the Port Commission authorized a reimbursement for Alaska Airlines' tenant
improvements related to Airline Realignment. Alaska has completed those tenant improvements.
A review of the Airline Realignment Agreement with Alaska indicated that necessary
improvements to the North Satellite parking locations for the Alaska regional aircraft could be
completed by Alaska and the costs reimbursed by the Port and funded as a part of Airline
Realignment. However, a review of the September 2012 Commission authorization concluded a
need to seek this additional authorization because there was no reference to any work at the
North Satellite. This work is not part of the NorthSTAR program. 
BACKGROUND 
With recent airline consolidation and the goal to maximize utilization of existing facilities, the
Airport exercised the One-Time Reallocation provision in the previous Signatory Lease and 
Operating Agreement. The reallocation required a number of modifications associated with the
airlines, which relocated their gate and ticket counter operations to effectively operate in their
new locations. The realignment was driven by the merger of major carriers and the consolidation
needs for Alaska Air Group that necessitated the repositioning of gates, holdrooms, and ticketing
positions throughout the Airport. The majority of the moves were completed by April 2013. 

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 5, 2014 
Page 2 of 4 
In September 2012, the Port Commission authorized an Airline Realignment memorandum of
agreement (MOA) with Alaska Airlines to reimburse Alaska Airlines for tenant improvement
work related to the Airline Realignment in the amount of $834,000, out of a total project cost
estimated at $1,179,000. Alaska has completed those tenant improvements and been reimbursed
$793,112.81. 
However, in the final implementation planning and phasing of the Airline Realignment moves, it
was clear that Alaska was going to need to operate Alaska regional aircraft from the North
Satellite in order to facilitate the phasing of United's move off the North Satellite. With this
change, Alaska required revisions to the aircraft ground electrical power system at the proposed
aircraft parking positions. Alaska has completed the work for a cost of $156,395.57. This work
was performed under  the Airline Realignment MOA with Alaska,  and is  eligible for
reimbursement under that MOA, but prior to final reimbursement, staff realized the previous
Commission Authorization made no mention of work at the North Satellite. 
PROJECT JUSTIFICATION AND DETAILS 
The work completed under this project represented a critical component in supporting the
broader airline relocation effort while also providing improved operational efficiency throughout
the Airport.
Project Objectives 
This project: 
Supported the timely relocation of airlines in Airline Relocation Tenant Improvement
Program. 
Provided necessary ground electrical power for Alaska regional aircraft at the North
Satellite. 
Scope of Work 
Install electrical service across the Airport ramp to power five aircraft ground power units and
three 480V rectifier carts. 
Schedule 
Construction (by Alaska) was completed in the third quarter of 2013. 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                            $0    $1,179,000    $1,179,000 
Budget reduction                                 -$154,000     -$154,000 
Revised budget                                 $1,025,000    $1,025,000 
Previous Authorizations                       $0    $1,179,000    $1,179,000 
Current request for authorization                  $0          $0          $0

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 5, 2014 
Page 3 of 4 
Total Authorizations, including this request           $0    $1,179,000    $1,179,000 
Remaining budget to be authorized               $0          $0          $0 
Total Project Cost                           $0    $1,025,000    $1,025,000 
Budget Status and Source of Funds 
The costs associated with this project are operating costs. The costs associated with this
requested scope addition were accrued as operating costs in 2013. As such, the costs have been
incorporated into airline rates and charges and will be recovered through the 2013 settlement of
airline terminal rents. The total direct reimbursement to Alaska Airlines under this agreement
will be $949,508.38. The final project cost, including this reimbursement to Alaska Airlines, is 
$1,025,000, representing budget savings of $154,000. 
STRATEGIES AND OBJECTIVES 
This project promotes the Port's Century Agenda objective of "Meeting the region's air
transportation needs at Sea-Tac Airport" by realigning Airport users with Airport resources and
improving operational efficiencies throughout the Airport. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Do not expand the scope of the reimbursement to Alaska Airlines. Do not 
reimburse Alaska Airlines for this electrical work associated with the relocation of their regional
aircraft to the North Satellite. Because Alaska's regional operation had this amenity in their
prior location, it would contradict the "like for like" principle agreed with all the airlines
impacted as part of Airline Realignment. Without this ground power amenity, regional aircraft
would have to run their APU systems which would have negative financial and environmental
implications. This is not the recommended alternative. 
Alternative 2)  Expand the scope of the reimbursement to Alaska Airlines and reimburse them
for the electrical work associated with the relocation of their regional aircraft to the North
Satellite. This is consistent with the "like for like" principle agreed with all the airlines impacted
by Airline Realignment. This alternative additionally provides both financial and environmental
benefits. This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
September 11, 2012  the Port Commission authorized Tenant Improvement
Reimbursement for Alaska Airlines in the amount of $1,179,000.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 5, 2014 
Page 4 of 4 
Other Airline Realignment related actions and briefings occurred on the following dates: 
March 26, 2013 
March 12, 2013 
December 11, 2012 
December 4, 2012 
November 13, 2012 
October 2, 2012 
July 10, 2012 
June 26, 2012 
June 26, 2012 
April 24, 2012 
April 10, 2012 
March 27, 2012 
January 24, 2012 
December 6, 2011 
November 22, 2011 
September 12, 2011 
June 14, 2011 
March 1, 2011 
February 22, 2011 
January 25, 2011 
September 29, 2010 
July 9, 2010 
June 8, 2010