Item Number:    6c_motion 
Meeting Date:  May 26, 2015 
DRAFT MOTION 
OF THE PORT OF SEATTLE COMMISSION 
PROVIDING GUIDANCE TO THE CEO FOR MODELING FUNDING OF 
THE AIRPORT 5-YEAR CAPITAL IMPROVEMENT PROGRAM 
PROPOSED MAY 26, 2015 
TEXT OF THE MOTION 
The Port of Seattle Commission seeks to provide early guidance to the CEO for modeling an
overall balanced funding plan for the inclusion in upcoming bond offering documents and
proposed budgets. 
Consistent with the Statement in Support of the Motion, the Port of Seattle Commission directs
staff to: 
1.  Model a preliminary funding plan for the International Arrivals Facility (IAF) based on the
following: 
a)  Competitive Federal Inspection Service (FIS) rates that consider the rates at international
airports in Seattle-Tacoma International Airport's market, such as Denver, Los Angeles,
Portland, San Francisco, and Vancouver; and 
b)  Judicious use of airport cash and foregone amortization (without charging the FIS rate
base an amortization fee) combining approximately $200 million of airport cash
investment, and 
c)  Use of Passenger Facility Charges (PFCs) as either (or both) a source of direct project
funding or to pay revenue bond debt service in order to achieve the desired FIS rate. 
d)  Maintain a cost per enplaned passenger (CPE) and the landing fee rates that remain
competitive within the middle third of peer airports ("market rate"); and 
e)  Avoid establishing competitive advantages or disadvantages between and among Sea-Tac
Airport airline tenants, but instead maintain a level playing field. 
2.  Update the Commission as part of the annual development of the Port's Plan of Finance
about changes to the following four factors (or any other elements that could materially
impact the FIS rates in 2019): 
a)  The then-current projection of the final cost of the IAF, 
b)  Provisions of either a subsequent Signature Lease and Operating Agreement or a Rates
and Charges Resolution, 
c)  The federal cap on the amount of locally imposed PFCs, and 
d)  The relative balance of international and domestic passengers at Seattle-Tacoma
International Airport. 

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3.  Provide the Commission with quarterly briefings that give full and transparent updates on
design and construction costs of the IAF. Annually, upon completion of the budget and plan
of finance, provide projected FIS rates, landing fee rates, and CPE for the five-year forecast
period.  Compare the CPE, landing fee, and FIS rates to the best available information for
peer airports.
4.  Seek Commission input prior to presenting a final financing plan for commission approval.
The Commission will evaluate project costs to ensure value for airline partners and traveling
public. 
STATEMENT IN SUPPORT OF THE MOTION 
Seattle-Tacoma International Airport is the fastest growing airport in the United States and as a
consequence is undertaking a major capital improvement program (CIP) that includes facilities
that serve both domestic and international passengers. Forecasts estimate an approximate
increase in international passengers by 25 percent within the next five years. As part of those
efforts, the Port will be securing bond funding for improvements of the North Satellite and
Central Runway (a process that will begin July 2015). Por t staff is seeking early guidance on the
funding principles for an improved International Arrivals Facility in order to accurately project
the Port's financial circumstances for that bond issue. 
The  current Federal Inspection Services facility  at the South Satellite of Seattle-Tacoma
International Airport, completed in 1973, lacks the capacity to handle current and projected
international arrival demand that results in delays and poor customer service. The shortcomings
of the facility present a constraint on the Puget Sound region's ability to retain and attract new
international air routes.
Expanded non-stop service to international destinations from Seattle-Tacoma International
Airport is vital to the increasingly globalized economy of the Puget Sound region. The Port
should provide outstanding aviation and passenger facilities, while maintaining an overall airport
cost per enplanement and specific rates and charges within the market range of such rates for
peer or competitor airports. 
At this early stage of program design, the Port cannot specify the final cost or exact levels of
various funding options for the IAF. The Port Commission is committed to a transparent process
for developing a cost-effective design for the facility and a balanced funding plan that will
support the success of all airline partners. The Port's airline partners agree on the need for an
improved International Arrivals Facility, and it is appropriate for the Port to provide the airlines
with information about future rates and charges for their planning needs. 
The Port first engaged airlines in considering options to address the inadequate capacity in the
current international facility in 2010. Over the next three years, including 12 meetings with the
Airline Airport Affairs Committee, the Port considered several options, including reconstruction
of the current facility under the South Satellite; major expansion of the current facility; dual
federal inspection service facilities; and a new facility east of Concourse A.

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Following Commission authorization July 2013, the Port completed detailed scoping of the
existing plan, including incorporation of current and anticipated technologies, allowing faster
processing and the most productive use of the new facility. The Port is in the process of
procuring a design-build contractor to design and construct the facility. Today, staff estimates the
project cost to be approximately $608 million, including approximately $100 million in reserves.
Staff anticipates receiving the design/build contractor's post-validation report with the target
budget and target schedule in February of 2016. 
The Signatory Lease and Operating Agreement (SLOA III) currently in place at the Airport 
includes several specific provisions that require Port Commission guidance regarding funding
principles and related tariffs for the new International Arrivals Facility. Section 8.4 of SLOA III
requires the users of the International Arrivals Facility to pay for the full costs of the facility.
Section 8.4.4 permits the Port to use non-aeronautical revenues to offset the FIS requirement and
reduce the FIS rate. 













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