PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA                      Item No.         6a 
ACTION ITEM 
Date of Meeting     September 24, 2013 
DATE:     September 17, 2013 
TO:        Tay Yoshitani, Chief Executive Officer 
FROM:    David Soike, Director, Aviation Facilities and Capital Program 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  NorthSTAR Program   North Satellite Refurbish Baggage System Project
(CIP#C800555) 
Amount of This Request:          $11,987,000    Source of Funds:  Airport Development
Fund, Existing Bonds
Est. Total Project Cost:             $15,747,000 
and Future Revenue
Bonds 
Est. State and Local Taxes:            $942,000    Est. Jobs Created: 236 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to: (1) advertise, award, and
execute a major public works contract for the construction of the North Satellite Refurbish
Baggage System Project; and (2) authorize the use of Port crews. This request of $11,987,000 is
in an addition to the $3,760,000 that was previously authorized for a total project authorization
of $15,747,000.
SYNOPSIS 
Alaska Air Group (AAG) is now using all gates at the North Satellite (NSAT), including ticket
lobby and gate locations formerly occupied by United Airlines. This project will refurbish
existing baggage systems in support of AAG's expanding operations at NSAT and continued use
of Concourse D. AAG's baggage volumes are an estimated five times greater than United's
requirements in recent years.  The work will extend the service life for portions of the C92
Concourse D baggage systems, C88 North Satellite systems, and C88 tunnel systems. This
project is a component of the North Sea-Tac Airport Renovation (NorthSTAR) program and is
included in the 2013-2017 capital budget and plan of finance. 
The project will replace aging conveyor belts, motors, drives, and controls of the existing C88
and C92 systems, as required to improve reliability and provide greater functionality.  The
project will provide significant operational benefits to AAG including potentially increasing the
rate of speed for certain conveyers.  The Port and AAG worked together to develop evaluation
criteria and metrics to minimize component replacements and costs to refurbish the systems.

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 17, 2013 
Page 2 of 6 
During the refurbishment, the Port and AAG staff will continue to work collaboratively to refine
selection of component replacements to improve functionality. 
BACKGROUND
As part of the Airline Realignment and United Airlines' relocation from NSAT to Concourse A; 
AAG's baggage handling consultant evaluated the existing systems and conditions and prepared
a detailed analysis of each system's performance requirements to meet future baggage volumes.
These volumes are based on AAG's future growth projections. The scope of work for this
project is a result of AAG's previous study and Port staff input. It represents a critical
component in providing improved baggage handling systems for AAG. AAG prefers to continue
all  baggage  makeup  operations  at  the C92  system  under  Concourse  D  to  allow  for  early
completion of the North Satellite baggage refurbishment prior to its use.  The C88 system that
connects to and serves NSAT will be shut down for limited durations as coordinated closely with
AAG operations during construction to minimize impacts to AAG and Airport operations and to
allow for early completion of the refurbishment. 
The typical (or standard) design life of a baggage system is 15 years. The C92 system is 21
years old. This project  will allow the Port to extend the useful life of the system to satisfy the
customer's requirements. This project is being coordinated with the proposed Checked Baggage
Optimization Project.  The physical work may be completed by a construction contract within
the Optimization project.  Port and AAG staff will work together to coordinate both projects to
include the most beneficial and cost effective elements. 
The current C88 tunnel systems and C88 North Satellite systems are nearly 25 years old. The
longevity of the C88 system can be attributed to: 1) the current running speed of the conveyors is
relatively slow, resulting in minimal wear on the conveyor components; 2) the current low
demand on the system is approximately 3,000 bags per day, on a system designed for up to
15,000 bags per day; and 3) the maintenance program of the existing system is proactive and
extensive. 
In support of the project, Port crews will perform baggage tunnel conveyor work and any
incidental regulated materials management. 
PROJECT JUSTIFICATION AND DETAILS 
The volume of AAG's projected baggage would be too heavy a burden on existing systems,
therefore improvements are required.
Port Maintenance provided statistical data metrics tying volume of passenger traffic to critical
failure of conveyors.  Although the data cannot quantify impacts to airline operations, it shows
that with increasing AAG bag traffic, there is increased failure frequency potential of critical
components.  Currently, at peak loads, the system has a critical failure once every three days.
This current peak load is AAG's baseline. If refurbishment of the conveyors is not completed
before the increased demand, it is reasonable to expect there will continue to be a critical failure
at least once every three days at baseline levels, with an increased frequency of critical failures
during AAG's peak loads. As a result of this detailed analysis, AAG approved the addition of a

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 17, 2013 
Page 3 of 6 
redundant recirculation conveyor at the C88 systems and construction of other scope within the 
North Satellite.
Another system improvement addressed in this project is avoiding the congestion of the C1
sortation loops. Currently, all transfer bags are conveyed through the central C1 sortation loops.
These loops get congested and may cause delivery times to increase during peak operations. The
proposed modifications will divert most of the transfer bags to the appropriate sortation systems
before they enter the C1 loops, creating baggage sortation efficiencies.
Project Objectives 
1.  Improve the long-term reliability of the baggage conveyance system 
2.  Increase the overall speed of the conveyors, but not the overall baggage capacity (unless
necessary). 
3.  Reduce baggage volume pressure on C1 sortation loop 
4.  Extend the service life of the systems 
Scope of Work 
The C92 systems between the C1 sort loops and the C92/C88 connection, the C88 tunnel
systems, and the C88 North Satellite systems will be refurbished and/or overhauled. A mini-sort
system will be installed to presort transfer bags at the C92 transfer input to sort bags directly to
the C92 and C88 systems, instead of sending them to the C1 sortation loops, which will reduce
C1 sort-loop bag volume pressure. 
The scope includes the following elements: 
1.  Refurbish North Satellite tunnel and pier conveyor:  replacement or refurbishment of
motors, gears, conveyor belts, and support equipment. 
2.  Evaluate and replace pushers as necessary: total replacement of internal pusher hardware
and components in the C88 system. 
3.  Add mini-sort conveyor system at C92-TX1 transfer input to presort transfer bags.
4.  Upgrade / replace programmable logic controllers (PLC's) at C92. 
5.  Refurbish C1 to the C88 cross-over: replacement or refurbishment of conveyor sections,
motors, gears, belts, and support equipment. 
6.  Upgrade of C88 computer systems and programmable logic controllers (PLC's). 
7.  Replacement of automatic tag readers (ATRs) at C88 North Satellite system. 
8.  Add  a  redundant  recirculation  conveyor  for  the  C88  system  at  the  North  Satellite
Bagwell. 
9.  Add in C88 sortation.  Selectively replace other field control devices and wiring for both
the C92 and C88 systems. 
10. Replace motor control panels (MCPs) for C88 sortation system 
11. *Evaluate and refurbish the C92 sortation system pushers, sortation conveyers, and
recirculation conveyers as necessary. 
*Item 11 was identified in an earlier memo and presented to Commission as delayed until
deemed to be justified by metrics, benefit to the system, and availability of funds. As a result

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 17, 2013 
Page 4 of 6 
of discussions with AAG, this authorization request includes the design and construction of
the scope.
Schedule 
Commission Authorization of Design             November 6, 2012 
Design Start                                   January 2012 
Design End                                October 2013 
Commission Auth. of Construction                September 2013 
Construction Start                               March 2014 
Construction End                              October 2014 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary                    Capital        Expense    Total Project 
Original Budget                                $22,000,000              $0     $22,000,000 
Budget reduction                               -$6,253,000                     -$6,253,000 
Revised budget                                $15,747,000                    $15,747,000 
Previous Authorizations                         $3,760,000              $0      $3,760,000 
Current request for authorization                 $11,987,000               $0     $11,987,000 
Total Authorizations, including this request      $15,747,000               $0     $15,747,000 
Remaining budget to be authorized                      $0              $0              $0 
Total Estimated Project Cost                    $15,747,000              $0     $15,747,000 
Project Cost Breakdown                               This Request           Total Project 
Construction                                              $9,421,000             $9,421,000 
Construction Management                              $1,417,000            $1,417,000 
Design                                                           $0             $2,169,000 
Project Management                                           $0            $1,591,000 
Permitting                                                  $207,000               $207,000 
State & Local Taxes (estimated)                             $942,000               $942,000 
Total                                                      $11,987,000            $15,747,000 
Budget Status and Source of Funds 
This project was included in the 2013-2017 capital budget and plan of finance within CIP project
#C800555. Funding sources include the Airport Development Fund, existing bond proceeds, and
future revenue bonds.  As indicated in the plan of finance, the Port anticipates issuing revenue
bonds in 2014 to fund a number of projects.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 17, 2013 
Page 5 of 6 
Financial Analysis and Summary 
CIP Category                   Renewal/Enhancement 
Project Type                     Security 
Risk adjusted discount rate       N/A 
Key risk factors                   N/A 
Project cost for analysis           $15,747,000 
Business Unit (BU)               Terminal  baggage system 
Effect on business performance   NOI after depreciation will increase 
IRR/NPV                   N/A 
CPE Impact                   Will increase CPE by $.08 
Lifecycle Cost and Savings 
The renovation of existing baggage systems in this project will decrease the risk of expensive
equipment  replacements  due  to  operationally  challenging  unforeseen  failures  of  aging
equipment.  The renovations will increase system size (conveyor length, etc.) and increase
availability (operational up-time as a result of newer components with less risk of failure), but
the renovations will not appreciably decrease the number of preventive maintenance activities
performed on the systems.
STRATEGIES AND OBJECTIVES 
The anticipated growth in domestic and international enplanements will require additional
capacity in baggage processing for all airlines. This project supports the Port's Century Agenda
objective of meeting the region's air transportation needs at Sea-TacAirport for the next 25
years. This project also supports the Aviation Division's strategy of anticipating and meeting the
needs of our tenants, passengers, and the region's economy. 
TRIPLE BOTTOM LINE 
Economic Development 
This project will increase the long-term ability of the Airport to serve AAG's future growth.
This project cost effectively meets AAG's needs by upgrading existing systems rather than
building entirely new systems.
Environmental Responsibility 
This project demonstrates environmental sustainability by improving existing Port assets to
extend their life and better utilizing existing resources.
Community Benefits 
Long-term vitality of the Airport benefits the regional economy, the local environment and
nearby communities.  The Office of Social Responsibility (OSR) will provide support in
determining small business participation, as described in Resolution No. 3618.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 17, 2013 
Page 6 of 6 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1) Fully renovate or replace significant portions of the existing C88 and C92 
systems to provide a newer system with adequate capacity for processing 100% of the AAG's
future forecasted check-baggage volumes. Future baggage recapitalization projects are expected 
to replace C88 and possibly portions of C92 prior to their expected life and full depreciation
making this alternative very expensive. This is not the recommended alternative. 
Alternative 2) Modify the existing C88 and C92 systems to replace all sort-piers with eight
recirculating makeup carousels to handle AAG's increase flight schedule and baggage loads.
The infrastructure costs and the impacts to Alaska's operations due to the downtime required to
implement this alternative are not desirable. This is not the recommended alternative. 
Alternative 3) Renovate and upgrade existing systems to relocate much, but not all, of AAG's
make-up to the North Satellite existing C88 system, while maintaining a split operation with
some baggage make-up remaining on the Concourse D C92 system. This option balances the
highest operational efficiency while minimizing impacts to system failures for the investment.
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
Airport Overall Baggage System Map 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
July12, 2013  The Commission was notified of 1 added scope item and 2 scope items
moved into the scope that were previously identified as suggested scope in the November
6, 2012 Commission Memo. 
June 25, 2013  Commission Quarterly Update for NorthSTAR Program. 
March 26, 2013  Commission Quarterly Update for NorthSTAR Program. 
November 6, 2012  The Commission authorized staff to prepare design documents and
use Port crews to support site investigation needed to develop the contract documents, in
the amount of $3,760,000. 
April 10, 2012 - The Commission authorized the execution of consultant contracts for
design and  construction support services;  program  management  services;  and the
completion of site surveys for regulated materials management, in the amount of
$1,200,000.