PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      7a 
STAFF BRIEFING 
Date of Meeting     August 20, 2013 
DATE:    August 14, 2013 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Dave Soike, Director, Aviation Facilities and Capital Program
Wendy Reiter, Director, Aviation Security & Emergency Preparedness 
SUBJECT:  Follow-up on the Baggage Optimization Program at the Airport C800612 
SYNOPSIS 
This briefing has been prepared to respond to questions arising from the earlier briefing
on August 6, 2013, and to provide a status update on the project. Responses to
Commissioners' questions addressed in this memo focus on the following subject areas: 
Airline Involvement and Support 
Cost Per Enplaned Passenger (CPE) Impact 
Full Design before Bidding 
Schedule 
RESPONSES 
The following are responses to questions from Commissioners on August 6, 2013. 
What is the current state of airline involvement and support? 
The Airline Airport Affairs Committee (AAAC) was briefed on the optimization project
and alternatives at a meeting on May 15, 2013. Following that briefing, operations staff
from multiple airlines have participated in several design team meetings to date including
May 29, June 26, July 10, July 24, and August 7. Further, the airlines  via the AAAC  
received a second shorter briefing on optimization on August 8 as part of the Signatory 
Lease and Operating Agreement (SLOA) discussions. During that meeting, the AAAC
indicated they would agree to $40 million as an initial pre-approved project amount
within SLOA for optimization to carry the project ahead with analysis, phasing, and
design through the first part of 2015. This timing will allow the airlines to be able to
receive more design information and to have a Majority-in-Interest vote on the full 
project in early 2014 as they have traditionally done on other large projects. In addition, 
the AAAC noted that they may name a consultant representative to participate in the full
design process on their behalf.


Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 14, 2013 
Page 2 of 4 
What is the relative Cost per Enplaned Passenger (CPE) impact compared to the
other two large projects being initiated - International Arrivals Facility (IAF) and
Alaska's NorthSTAR project? 
The relative CPE impact is shown in the following table: 
Project CPE Impacts 
Project              2014    2015    2016   2017    2018    2019    2023 
IAF CPE           0.00    0.00    0.00   0.18    0.18    0.17   0.19 
NorthSTAR CPE      0.00   0.05   0.39   0.73   0.87   1.00   0.92 
Bag Optim. CPE      0.00    0.05    0.05   0.34    0.33    0.64   0.88 
* each column represents cumulative CPE impact in dollars 
The IAF CPE impact is lessened by the use of available passenger facility charge
revenues to aid in funding the project. While funding arrangements may vary by year, in
general, both Alaska's NorthSTAR project and the baggage optimization would be
funded primarily by debt and the Airport Development Fund. The impact of
Transportation Security Administration (TSA) reimbursement funding for baggage
optimization will reduce the optimization CPE impacts by approximately 30%, and that
reduction is included above. As stated below, the total amount of TSA funding is not yet
confirmed. The amount of TSA funding will be known in approximately a week's time.
IAF and NorthSTAR are included in our current capital budget forecast; however,
Baggage Optimization would be a new project. Therefore, the CPE impact related to
Baggage Optimization would be additional, but already budgeted allowances for future
projects may be able to cover a significant portion of the CPE impacts depending upon
other future capital project decisions. This will be noted in the business plan presentation
for Aviation. 
Will full design, or partial design, be used for bidding the optimization projects? 
The TSA funding agreement allows ample time for full 100% designs to be completed.
This overall optimization project will involve multiple phased projects and each project
will be fully 100% designed before being put out for bid. Full design will help prevent
cost growth issues during construction as occurred a decade ago when the first explosive
detection baggage systems were initially installed very soon after September 11, 2001.
More recent baggage projects have also been fully designed and have been delivered on
schedule and under budget.  Various other baggage projects that are not related to
optimization are on the design drawing boards now and all will be completed to 100% 
design.  These other baggage projects (such as NorthSTAR, C-60/61, passenger bag
claim carousels, etc.) will have to be completed to meet current airline n eeds while

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 14, 2013 
Page 3 of 4 
optimization is simultaneously moving forward over the next decade. Typical of all
projects, and as needs arise, each baggage project will request Commission approval for
design and construction.
What is the TSA funding process and timing? 
The TSA will contribute between $50 million and $100 million of the estimated
$286 million  $317 million optimization project.  The exact amount has not been 
announced as of the preparation of this memo but will be available in time for the
August 20 briefing.
As a result of continuing federal budget pressures, TSA staff has noted that this is likely
the last year for the opportunity to lock-in continuing multi-year funding over the life of
the TSA optimization investment.  Consequently, if the Airport does not enter into an
agreement this fiscal year with the TSA, then the Airport would have to compete for
more limited resources in each future year against the continuing needs of other airports
and the TSA's own baggage equipment purchasing and operating needs. 
The near-term necessary approval steps are as follows: 
1.  The TSA is expected to provide to the Port their funding level offer on or about
August 16, 2013. This funding would not be newly requested funding, but rather
is from their existing appropriations.
2.  The Airport validates and negotiates changes, as necessary, during the week of
August 19. 
3.  If the TSA funding level is found to be appropriate, then Airport staff returns to
Commission on September 10 to request approval of the funding agreement with
the TSA and to request continuing design funds for 2014.
4.  If the Commission approves the request on September 10, the Airport would
execute the agreement as soon as September 11. 
5.  The TSA would then provide a 5-day informational notification through their
congressional liaison process to provide awareness to members of Congress as to
how they have committed to spend the already appropriated TSA funds.
6.  The TSA would countersign the agreement with the Airport after the 5-day
notification period and provide the Port signature copies. 
ATTACHMENTS TO THIS BRIEFING 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
August 6, 2013  The Commission was briefed on the near-term and long-term
challenges related to handling checked baggage at the Airport. 
January 22, 2013  The Commission authorized $5 million for staff to begin
design, to take design to 30%, and to enter into an agreement to allow

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 14, 2013 
Page 4 of 4 
reimbursement from the federal government to the Port for eligible elements of
the 30% design work.
January 8, 2013  Baggage systems briefing. 
August 14, 2012  Baggage system recapitalization/optimization was noted in
the 2013 business plan and capital briefing as a significant capital project not
included in 2013-17 capital program. 
August 7, 2012  Baggage system recapitalization/optimization was referenced
as one of the drivers for the need to develop an Airport Sustainability Master
Plan. 
June 26, 2012  The Airport's baggage systems were discussed during a
briefing on terminal development challenges. 
May 10, 2012  TSA's interest in a national recapitalization/optimization plan 
for all baggage screening operations was referenced in a design authorization
request for the C60  C61 Baggage Handling System Modifications Project.