PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA                      Item No.         6a 
ACTION ITEM 
Date of Meeting        July 23, 2013 

DATE:     July 16, 2013 
TO:        Tay Yoshitani, Chief Executive Officer 
FROM:    Michael Ehl, Director, Airport Operations 
Wayne Grotheer, Director, Aviation Project Management 
SUBJECT:  Sea-Tac International Airport International Arrivals Facility (IAF) C800583 

Amount of This Request:      $3,500,000                    Source of Funds: Airport
Development Fund 
Est. Total Project Cost:        Approximately $300 million 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to (1) authorize preliminary
project funding of $3,500,000 for the new International Arrivals Facility (IAF) at Seattle-Tacoma 
International Airport; (2) execute a consultant service agreement for program and project
management support services;  and  (3) authorize the use  of  Price Factors Design/Build 
methodology for project delivery of the IAF building to be located adjacent to Concourse A.
SYNOPSIS 
The Airport's current international arrivals facility, includingFederal Inspection Services (FIS),
is located below grade at the South Satellite and has had only one expansion since it opened 40
years ago in 1973. International travel through the Airport has increased significantly since 2004
and a substantial number of these international air travelers arrive during the mid-day peak. The
Port welcomes this growth, but it has led to congestion in the over-taxed facility. The Airport's
international arrival facility will exceed capacity within five years in many areas such as gates,
immigration inspection, baggage claim, security checkpoint, and the satellite transit system train. 
An overloaded international arrivals facility will have a detrimental effect on connecting times
between international and domestic flights that could place the airport at a competitive
disadvantage.. As such, Port staff recommends replacing the current aging facility with a new
International Arrivals Facility that will serve the traveling public well into the future. 
Development of a capital program to replace the current IAF requires significant resources. We
need to begin now in order to meet airline and passenger needs before the current facility
becomes completely untenable.  There are several initial tasks to complete even though some
project definition questions are still being resolved. Beginning initial work now will allow us to
proceed rapidly with implementation when these questions are resolved. The project team will

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 16, 2013 
Page 2 of 7 
return  to  request  further  Commission  authorization  for  design  of  project  elements  and
procurement of design services and construction. 
At this time, Port staff is requesting authorization for initial project funding and to execute a
consultant service agreement for program and project management services. The total efforts for
program management, both staff and consultant, for past programs of similar scope, such as the
Rental Car Facility and NorthSTAR, have been in the range of 5.5% - 6.6%.  If applied to the
current IAF cost estimate (for the single facility option) the total effort for program management
services would be $16,500,000 - $19,800,000. Staff will develop a detailed staffing plan
outlining the mix of in-house and consultant staff as we develop the procurement plan for
program and project management services.  We also anticipate that a final alternative for the
location of the IAF (single or dual facility option) will be chosen before the consultant contract
for program management services will be executed.  Specific tasks for the consultant program
management team will be issued via service directive as the project moves forward in accordance 
with Port Commission budget authorization in place at the time of service directive execution. 
We are also requesting authorization to use a design/build project delivery method (Price Factors
Design/Build) for the new IAF building (which is part of both facility options) as authorized by
State law that requires State board approval for implementation. We have analyzed this method
versus the other methods available (standard Design-Bid-Build process, Lump Sum Design
Build, and General Contractor/Construction Manager) based on five criteria  cost, schedule,
quality/aesthetics, implementation/risk, and stakeholder involvement. Staff recommends the use
of this methodology for the new IAF building because it provides opportunities for innovative
teamwork and for the overlap of design and construction, facilitating cost control and a shorter
schedule. 
Finally, staff anticipates further procurement action for the IAF program following future
Commission authorization as required by Resolution 3605. Further procurement includes at least
the following elements: 
Design and construction for the IAF building and for the bridge or tunnel. 
Construction management services 
Procurement support for alternative project delivery methods such as Price
Factors Design/Build 
Training for Port staff on alternative project delivery method use 
BACKGROUND 
The Port Commission was briefed on July 9, 2013, about the Airport's nearly 65-year history of
service as the Pacific Northwest's preeminent gateway for international air service to many
important international markets.  In 2012, the Port Commission included making the Seattle-
Tacoma International Airport the West Coast "Gateway of Choice" for international travel as a
key strategic objective in the Port's Century Agenda. International flights, and their connecting
domestic flights, provide significant economic benefit to the Port and the region as a whole.
Studies at other airports have shown that the economic benefits of a new international flight
extend far beyond those for the flight activity itself via higher concessions and other passenger
related revenues, plus increased foreign direct investment and exports of goods and services.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 16, 2013 
Page 3 of 7 
PROJECT JUSTIFICATION AND DETAILS 
The Airport's current international arrivals facility in the South Satellite, including Federal
Inspection Services (FIS) facilities, opened in 1973 and has seen only minimal overall facility
changes since that time, apart from an expansion in the mid-1980s that increased capacity to
1,200 arriving passengers per hour.  Although the international arrivals facility has not grown
significantly over the years, the Airport's international air service has grown significantly and
continues to grow at a rapid pace, especially during the mid-day peak. The Airport expects
announcements of new international service in 2014.  However, the peaking nature of airline
schedules is even more of a challenge than increased traffic volume. Airlines that depart airports
in Europe and Asia for West Coast gateway airports, such as Sea-Tac, typically arrive at midday
, resulting in congested arrival facilities. This congestion has caused capacity problems in the
existing FIS facility today and has discouraged some airlines from scheduling additional arrivals
during the mid-day. 
In the next five years, anticipated growth will exceed the capacity of the existing facility and lead
to  connection  times  longer  than  the  currently  published  90  minutes  to  connect  between
international and domestic flights. Operational measures have been implemented in conjunction
with Customs and Border Protection (CBP), Airport Operations, and the airlines to optimize the
capacity of the current facility, but these measures are not anticipated to keep pace with projected
growth.  Increased connection times risk potential loss of market share to other West Coast
airports with more modern FIS facilities. 
The Airport's current 40-yearold FIS facility has surpassed its design life and needs to be
renewed to meet the Port's ambitious Century Agenda goals to remain competitive with other
West Coast airports. 
Project Objectives 
Project objectives for a new international arrivals facility include: 
Accommodate  current  international  travel  growth  and  meet  future  needs,  and  be
competitive. 
Incorporate current CBP passenger processing procedures and standards. 
Replace aging facilities and improve the international travelers' experience at the
Airport. 
Scope of Work 
This program's scope of work is still being defined, but the largest individual project will be 
construction of a new IAF facility adjacent and connected to Concourse A. Authorization of the
initial project funding included in this request will be used to complete project definition of the
entire program, including development of a more precise scope of work.  Analysis is currently
underway to determine if remodel and reuse of the existing FIS facilities in the South Satellite is
recommended in addition to construction of a new landside-located facility and whether the
South Satellite and IAF should be connected by a bridge or a tunnel. Port staff will return to
Commission to present the results of that analysis later this year. In  March 2014, Port staff will
request Commission authorization to move the landside facility project forward to procurement
of a Price Factors Design/Build team and to begin full design.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 16, 2013 
Page 4 of 7 
State law authorizes various approaches to Design/Build contracting. The one we propose is
called Price Factors Design/Build and includes preparation of initial design documents (also
known as bridging documents) by a consultant design team, followed by selection of a separate 
designer-contractor team based on qualifications and price factors.  This contracting method
provides opportunities for innovative collaboration between the Port and the designer-contractor
team as the design is developed which will facilitate development of a project that effectively
competes with other international arrivals facilities on the west coast of North America. This 
method would allow construction to proceed for early project elements in a fast-track manner,
thereby bringing the new IAF into use sooner. As an example, building foundations can be
constructed while detailed design is still underway for the rest of the building. Construction costs
would be negotiated with the selected team and  agreement on costs would be reached
sequentially. The initial contract would be awarded with certain agreed cost factors and final
construction cost will be negotiated as design packages are finalized. 
Schedule 
Advertise for consultant program management services                               Aug 2013 
Award consultant program management services contract                             Oct 2013 
Project Definition Complete                                                          Feb 2014 
State of WA Project Review Committee Approval of Alternative Contracting          Mar 2014 
Commission Authorization to Procure Design/Build Team and Begin Design          Mar 2014 
Price Factors Design/Build RFP and Design Complete                               Aug 2014 
Price Factors Design/Build Team Selected                                            Jan 2015 
Commission Authorization for Construction                                         Nov 2015 
Design Complete                                                                Feb 2016 
Construction Complete                                                             Apr 2018 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary                    Capital        Expense    Total Project 
Original Budget                                         $0              $0              $0 
Previous Authorizations                                  $0              $0               $0 
Current request for authorization                  $3,500,000               $0      $3,500,000 
Total Authorizations, including this request       $3,500,000               $0      $3,500,000 
Remaining budget to be authorized                    TBD            TBD            TBD 
Total Estimated Project Cost                           TBD            TBD            TBD 

Project Cost Breakdown                               This Request           Total Project 
Outside Professional Services                              $1,500,000                   TBD 
Port Soft Costs                                             $1,300,000                    TBD 
Environmental Review                                   $430,000                  TBD 
Management Reserve                                  $270,000                 TBD 
Total                                                        $3,500,000                    TBD

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 16, 2013 
Page 5 of 7 
Budget Status and Source of Funds 
This project was included in the 2013-2017 capital budget and plan of finance as a business plan
prospective project. The funding source for this initial authorization request will be the Airport
Development Fund (ADF).  The funding sources for the total project budget will include the
ADF, future revenue bonds, grants, and Passenger Facility Charges (PFCs). 
Financial Analysis and Summary 
CIP Category                   Renewal/Replacement 
Project Type                     Renewal/Replacement 
Risk adjusted discount rate       N/A 
Key risk factors                   N/A 
Project cost for analysis           TBD, but estimated at approximately $300,000,000 
Business Unit (BU)               Terminal, FIS Cost Center 
Effect on business performance   N/A 
IRR/NPV                   N/A 
CPE Impact                   CPE will increase. The amount will be dependent upon
future operating and maintenance costs as well as the
combination of funding sources for the capital project, as
PFC and grant funded costs are excluded from airline rate
base. 
Lifecycle Cost and Savings 
This will be fully analyzed during project design consistent with Port policy on sustainable asset
management. 
STRATEGIES AND OBJECTIVES 
This project addresses the Port's Century Agendastrategic objective to advance this region as a
leading tourism destination and business gateway by making Seattle-Tacoma International
Airport the West Coast "Gateway of Choice" for international travel. 
This project also addresses the Aviation Division's strategic objectives to become one of the top
ten customer service airports in the world by 2015 and to operate a world-class international
airport by ensuring safe and secure operations and by anticipating and meeting needs of tenants,
passengers and the region's economy. 
TRIPLE BOTTOM LINE 
Economic Development 
Construction of a new IAF facility will allow the Port to keep pace with current international air
travel growth and position the Airport to attract new international air service.  International air
service has a direct positive economic impact, but also contributes to increased concessions and
other passenger-related revenues.  Studies at other airports have also shown that the addition of
new international air service routes provide a substantial boost to the local economy through
increased foreign direct investment and exports of goods and services.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 16, 2013 
Page 6 of 7 
Environmental Responsibility 
Construction of a completely new facility at the Airport is rare and gives the Port unique
opportunities to incorporate sustainable features into the design and construction of the building.
Identifying sustainability goals and objectives for the new IAF is high on the priority list for the
definition phase of this project.  If the airport is to meet the Century Agenda energy goal of
meeting future load growth through conservation or renewable energy, this new facility presents
a unique opportunity to advance our progress towards this goal. These goals and objectives will
be presented to the Port Commission in  March  2014  when the project team requests
authorization to begin development of the Price Factors Design/Build request for proposal. 
Community Benefits 
This project benefits the local community because arriving to a new modern IAF, instead of an 
aging facility, gives foreign visitors an improved first impression of the SeaTac area. In addition,
the new facility will create an opportunity for additional international service to and from the
Seattle region that will bring economic benefits to the community. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Do nothing. This alternative would  await further IAF alternative and budget
definition before authorizing initial project expenditures, program and project management
contracting, and project delivery method for the IAF building. This alternative is not preferred as
it would delay ultimate completion of the IAF. This is not the recommended alternative. 
Alternative 2)  Authorize initial project expenditures and program and project management
contracting but defer the decision on project delivery method for the IAF building.  This
alternative is not preferred as it would also delay completion of the IAF but to a lesser degree
than Alternative 1. This is not the recommended alternative. 
Alternative 3)   Authorize initial project expenditures, program and  project management
contracting, and Price Factors Design/Build project delivery method for the IAF building. This
alternative allows the project to proceed expeditiously on critical path project tasks that are
needed regardless of the pending project alternative decisions (single or split operations facility,
bridge or tunnel to connect the IAF building to the South Satellite). The results of further staff
work on project alternative decisions will be presented to the Commission this fall and further
project authorization will be sought in the winter of 2014.   This is the recommended
alternative. 
ATTACHMENTS TO THIS REQUEST 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
July 9, 2013  Sea-Tac Airport International Arrivals Facility Briefing. 
July 9, 2013  Alternative Public Works Contracting Briefing. 
April 9, 2013  Sea-Tac Airport International Arrivals Facility Briefing. 
June 26, 2012  Airport Terminal Development Challenges at Seattle-Tacoma
International Airport.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 16, 2013 
Page 7 of 7 
June 14, 2011  International Air Service Growth and Future Facility. 
February 2, 2010  Briefing on South Satellite Passenger Growth and Facility
Considerations, Delta's Proposed Airline Lounge and Other Possible Future Aviation
Projects.