PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       5h 
ACTION ITEM             Date of Meeting    May 14, 2013 

DATE:    April 29, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   David Soike, Director, Aviation Facilities and Capital Program 
SUBJECT:  Amendments to the Contract to Provide Natural Gas for the Transit Operations
Center 

Amount of This Request:  $0         Source of Funds: Airport Development Fund and 
Customer Facility Charges 
Est. State and Local Taxes: $1,170,000    Est. Jobs Created: N.A. 
Est. Total Contract Value:  $12,000,000 

ACTION REQUESTED: 
Request Commission authorization for the Chief Executive Officer to execute amendments to the
existing contract starting June 1, 2013, with CMS Natural Gas to provide natural gas for Seattle-
Tacoma International Airport extending through 2018 and to include provision of natural gas for
the Transit Operations Center through 2018 for an estimated total contract value not to exceed
$12,000,000. The resulting contract will be structured as a one-year agreement with up to four
years of additional service. 
SYNOPSIS: 
Puget Sound Energy (PSE) currently provides natural gas to the Airport and the Transit
Operations Center. In August 2012, the Port competitively procured the provision of natural gas
for the Airport. The solicitation was for the provision of natural gas for one year with four
additional option years. The solicitation also provided the option for the Port to expand natural
gas service to the Transit Operations Center. On August 28, 2012, Commission authorized the
CEO to execute a contract up to $2,000,000 for one year for the Airport terminal building only,
with four one-year options. CMS Natural Gas was selected through this competitive selection
process and will begin providing natural gas to the Airport and Transit Operations Center June 1,
2013.
This request is to authorize the CEO to execute amendments to cover (1) the remaining 4-year
period for the Airport terminal building and (2) provision of natural gas at Transit Operations
Center through June 2018.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 29, 2013 
Page 2 of 3 
BACKGROUND: 
Technology developments in the last few years have greatly increased the supply of natural gas
in North America. The U.S. now produces more natural gas than it consumes and has become a
net exporter of natural gas. This excess supply of natural gas has caused significant downward
pressure on the local index and shorter-term markets. By executing this contract, the Port
expects to reduce its natural gas expenses by approximately 10%. 
The Airport is comprised of over 3,000,000 square feet of terminal space and operates 24 hours a
day, seven days a week. Natural gas is utilized at the Airport's central mechanical plant boilers
to provide heating to the Airport terminal building. T he Airport's central plant consumes
approximately 2,700,000 therms of natural gas annually. 
The Transit Operations Center provides fueling for 45 Compressed Natural Gas (CNG) buses.
Of these 45 buses, 29 are used to support the Rental Car Facility operations and 16 are used to
support employee parking. The Transit Operations Center utilizes approximately 500,000
therms of natural gas annually.
FINANCIAL IMPLICATIONS: 
Budget Status and Source of Funds: 
The annual expenses included within this contract are incorporated into the 2013 operating
budget and future cost will be included in future operating budgets. The natural gas consumed at
the Airport will be funded by the Airport Development Fund (ADF). The consumption for the
Transit Operations Facility will be funded by both the ADF and Customer Facility Charges
(CFCs) in accordance with the split between employee parking buses (36%) and rental car
facility buses (64%). 
STRATEGIC OBJECTIVES: 
Contracting for natural gas supports the Port Century Agenda strategic objective to advance this
region as a leading tourism destination and business gateway by meeting the airport business
plan objectives of reducing airline cost per enplanement without compromising operational and
capital needs. Natural gas is currently our cleanest fuel option and this contracting choice
upholds our strategic objective to be the greenest and most energy efficient port in North
America.
ENVIRONMENTAL SUSTAINABILITY: 
Natural gas is a cleaner source of fuel and is an important part of the Port's sustainable energy
future. 
BUSINESS PLAN OBJECTIVES: 
Contracting for natural gas energy services supports the goal to reduce airlines cost per
enplanement without compromising operational and capital needs.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 29, 2013 
Page 3 of 3 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1  Continue to receive natural gas services for the Bus Maintenance Facility from
Puget Sound Energy without competing the service. This alternative is expected to result in
approximately 10% higher costs. This is not the recommended alternative. 
Alternative 2 - Authorize the Chief Executive Officer to execute amendments to purchase natural
gas and energy services for the Airport terminal building and the Transit Operations Center from
CMS Natural Gas. The alternative is estimated to reduce natural gas expenses by approximately
10%, and is expected to reduce airline cost per enplanement. The resulting contract will be
structured as one-year agreements with up to four years of additional service. This is the
recommended alternative. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
September 11, 2012, the Commission authorized the CEO to execute a contract for
natural gas for Seattle-Tacoma International Airport, Main Terminal Building.