PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6b 
ACTION ITEM 
Date of Meeting     March 11, 2014 
DATE:    February 28, 2014 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Elizabeth Leavitt, Director, Aviation Planning & Environmental Programs 
Wayne Grotheer, Director, Aviation Project Management Group 
Michael Ehl, Director, Airport Operations 
SUBJECT:  Seattle-Tacoma International Airport International Arrivals Facility (IAF) (CIP
#C800583) 
Amount of This Request:     $15,400,000    Source of Funds:  Airport Development 
Fund 
Est. Total Project Cost:      $316,000,000 
Program Authorization
Including this Request:       $18,900,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to (1) authorize additional
project funding of $15,400,000 for the new International Arrivals Facility (IAF) at Seattle-
Tacoma International Airport; (2) authorize an amendment to the existing Sustainable Airport
Master Plan service agreement with Leigh Fisher Associates for IAF-related planning tasks for
an increase of $3,650,000 for a new total contract amount of $9,650,000; (3) advertise for 
qualifications and proposals from a design-build team; (4) approve use of a project labor
agreement (PLA) covering the IAF program; and (5) authorize procurement of the South
Satellite to Concourse A Connector in the same price factors design-build contract as the IAF
building to be located adjacent to Concourse A.  In accordance with RCW 53.19.060, this
memorandum constitutes notification to the Commission that the amended amount of the
Sustainable Airport Master Plan service agreement exceeds 50 percent of the original not-toexceed
contract value. 
SYNOPSIS 
Replacing Seattle-Tacoma International Airport's existing over-burdened Federal Inspection
Services (FIS) facility with a modern and efficient International Arrivals Facility is a critical part
of realizing the Port Commission's Century Agenda objective to make the Airport the West
Coast "Gateway of Choice" for international travel. 
This request is a follow up to the IAF program briefing presented to the Commission on
February 25, 2014. The request provides for project management, planning, and other support 

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 28, 2014 
Page 2 of 8 
services to facilitate the International Arrivals Facility (IAF) design-build construction program 
and establishes a PLA for the program. This request will also authorize the advertisement for a
single design-build team for both the IAF building and the connector, utilizing a two-step
process including shortlisting via a request for qualifications and final selection of the team via a
request for proposals. The project was included in the 2014-2018 capital budget and plan of
finance. The International Arrivals Facility program was included as an approved project via the
current signatory lease and operating agreement, or airline lease. Therefore, no majority-ininterest
vote is required for the project. 
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 identified the Seattle-Tacoma
International Airport as 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. 
The Airport's current international arrivals facility, including Federal 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-burdened facility. The
Airport's international arrivals facility will exceed capacity to process passengers insummer
2014 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 recommended replacing the current aging facility with a new
International Arrivals Facility that will serve the traveling public well into the future. 
Staff briefed the Commission last year on utilization of the Sustainable Airport Master Plan
consultant to complete project planning and definition for the IAF program. As mentioned in our
briefing to the Commission on February 25, 2014, completion of this early planning work is
critical to providing adequate information to potential design-build firms and for completion of
environmental review under the National and State Environmental Policy Acts. Environmental
review of the IAF will be completed after the project planning and definition is completed. Staff
recommends modifying the Sustainable Airport Master  Plan contract with Leigh Fisher
Associates to allow completion of the IAF planning necessary for development of the program's
technical criteria. Amending the $6,000,000 service agreement by $3,650,000 to a new total
contract amount of $9,650,000 increases the total value of the contract by more than 50%.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 28, 2014 
Page 3 of 8 
Increases over 50% require notification to the Commission in accordance with RCW 53.19.060.
Funds associated with this planning are included in this authorization. 
Staff recommends the Port negotiate  and enter into a PLA for the IAF program major
construction contracts to ensure labor harmony, a quality labor force, and a safe and uniform
working environment. A PLA will minimize jurisdictional disputes and provide insurance to
minimize the potential for lost revenue, increased costs, operational impacts, and construction
schedule impacts related to labor disputes or issues. Essentially all crafts will perform work on
the program, given the size of this program and varied scopes of work. Due to the length of the
program's construction, every collective bargaining agreement associated with these crafts will
expire before completion of the program, creating the potential for labor-related delays. 
In July 2013, the Commission approved the procurement of the IAF facility utilizing the pricefactors
design-build procurement methodology.  At the time, utilization of design-build
procurement for the South Satellite-IAF connector portion of the program was excluded from the
request. Now that further analysis has been done, the project team recommends combining the
connector with the IAF facility procurement to best facilitate the program's schedule and
mitigate risks associated with coordinating two separate contracts. This approach limits the risks
associated with timing and coordination efforts of the design development and construction
process for the two structures. As with the main IAF, construction costs for the connector will
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. A final decision on utilization of a bridge or
tunnel connector will be made prior to advertisement for the RFP. 
PROJECT JUSTIFICATION AND DETAILS 
The Airport's current international arrivals facility in the South Satellite, including 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 mid-day, resulting in congested arrival
facilities.  This congestion has caused capacity problems in the existing FIS today and has
discouraged some airlines from scheduling additional arrivals during the mid-day. 
In summer 2014 scheduled flight activity will exceed the capacity of the existing facility. This
will require aircraft to be serviced on remote parking areas, and passengers will have to be bused
to and from the terminal. This will lead to connection times longer than the currently published
90 minutes to connect between international and domestic flights. Such alternate procedures as
remote parking operations, implemented in conjunction with Customs and Border Protection
(CBP), Airport Operations, and the airlines to optimize the capacity of the current facility, are

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 28, 2014 
Page 4 of 8 
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 IAF 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, meet future needs, and be
competitive. 
Incorporate current CBP passenger processing procedures and standards. 
Replace aging facilities and improve international travelers' experience at the Airport. 
Scope of Work 
This program's full 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. The final decision on
whether the connector to the South Satellite will be a bridge or a tunnel is targeted for March
2014.
Port staff now requests Commission authorization for the following activities: 
1.  Develop technical criteria for the IAF facility and the connector for procurement of a
price factors design-build (DB) team.  This effort includes involvement of various
internal and external project stakeholders.
2.  Allow the Sustainable Airport Master Planning consultant to complete planning and
project definition tasks necessary for the development of the IAF technical criteria.
3.  Advertise for qualifications and proposals from design-build teams. 
4.  Enter into a project labor agreement.
5.  Procure the connector and the IAF facility together in a single price-factors design-build 
contract. 
Schedule 
Advertise for consultant program management services                    Completed 
Award consultant program management services contract                   Completed 
Port certification as Design-Build Owner by the State of WA                 Completed 
Begin quarterly Commission program updates                         Completed 
Commission authorization to procure design-build team                      Q1 2014 
Project definition complete                                          Q2 2014 
Price Factors Design-Build RFQ & RFP Advertised                       Q3 2014 
Price Factors Design-Build Team Selected                              Q4 2014 
Commission authorization to award design-build contract, begin predesign work      Q1 2015

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 28, 2014 
Page 5 of 8 
Commission authorization to begin Design and Construction 
(following design-build team scope, cost and schedule validation)        Q2 2015 
Construction Complete                                         Q2 2018 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital    Expense    Total Project 
Original Budget (Phase I)               $316,000,000         $0    $316,000,000 
Previous Authorizations                 $3,500,000         $0      $3,500,000 
Current request for authorization            $15,400,000         $0     $15,400,000 
Total Authorizations, including this request    $18,900,000         $0     $18,900,000 
Remaining budget to be authorized             TBD       TBD         TBD 
Total Preliminary Estimated Project Cost     $316 million       TBD    $316 million 
The preliminary budget estimate for the first phase of a two-phase facility is $316 million. This
is a preliminary estimate that will be refined as the project planning and definition moves 
forward. 
Project Cost Breakdown               This Request      Previous
Requests 
Design and Construction                      $0          $0 
Port and Consultant Project Management      $5,850,000    $1,100,000 
Technical Criteria Design Development        $165,000     $900,000 
Port and Consultant Construction           $4,345,000     $600,000 
Management 
Project planning and definition              $2,600,000          $0 
Permitting                                $0      $100,000 
Other Port Soft Costs                    $2,385,000      $370,000 
Environmental Review                  $55,000     $430,000 
State & Local Taxes (estimated)                  $0          $0 
Total                              $15,400,000    $3,500,000 
Budget Status and Source of Funds 
This project was included in the 2014-2018 capital budget and plan of finance within CIP
#C800583.  The funding sources  for the total project budget will include the  Airport
Development Fund, future revenue bonds, grants, and Passenger Facility Charges (PFCs). 
The current program budget of approximately $316 million includes construction of the IAF 
facility and a bridge connector between the South Satellite and Concourse A. This preliminary
program budget will be updated as the scope is further defined and change trends are identified.
Recently identified scope additions to incorporate IAF-related airline relocations and to fund an
Airline Technical Representative will be included in the next budget update and will increase the

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 28, 2014 
Page 6 of 8 
cost of the overall IAF program. U tilization of a tunnel connector, should the decision to build a
tunnel over a bridge be decided, would also increase program costs since Port staff have
estimated construction costs of a tunnel to exceed construction costs of a bridge. The IAF team
anticipates developing a target cost for IAF construction that will be identified in the RFP for
shortlisted design-build teams and authorized by the Commission prior to design-builder contract
award.  This target will be confirmed and trended as design develops and construction
commences. 
This project was included in the list of projects approved by the airlines with the signing of the
Signatory Lease and Operating Agreement (SLOA III) with a budget of $300,000,000. 
Financial Analysis and Summary 
CIP Category             Renewal/Enhancement 
Project Type              Renewal/Replacement 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        TBD, but estimated at $316,000,000 for Phase I 
Business Unit (BU)          Terminal, FIS Cost Center 
Effect on business performance  N/A 
IRR/NPV             N/A 
CPE Impact             CPE is estimated to increase by $.35 in 2019. 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. All airline rate base costs
will be recovered by the users of the IAF through FIS
fees. 
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 Agenda strategic 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.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 28, 2014 
Page 7 of 8 
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. 
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 must
exceed current building codes for energy efficiency to advance our progress towards this goal.
The project team will consider  certifying the IAF with a Leadership in Energy and
Environmental Design (LEED) rating as one opportunity to meet the Airport's sustainability
goals. All IAF sustainability goals and objectives will be presented to the Port Commission in a
project briefing later this year as the project team develops the design-build RFP. 
Community Benefits 
This PLA project benefits the local community by creating a multitude of living-wage jobs over
the next five years. The project team will coordinate with the Port's Office of Social
Responsibility to identify small business opportunities in the IAF program.  Additionally,
arriving to a new modern IAF, instead of to an aging facility, gives foreign visitors an improved
first impression of the SeaTac area and the Pacific Northwest region as a whole. 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 project definition before
authorizing additional project expenditures. This alternative is not preferred as it would delay
ultimate completion of the IAF. This is not the recommended alternative. 
Alternative 2)  Authorize additional project expenditures but defer the decision to advertise for
a design-build contract. This alternative is not preferred as it would also delay completion of the
IAF albeit to a lesser degree than Alternative 1. This is not the recommended alternative. 
Alternative 3)  Authorize additional project expenditures to complete Planning work and
develop the program's technical criteria, establish a PLA and advertise for a design-build

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 28, 2014 
Page 8 of 8 
contract. This alternative allows the project to proceed expeditiously on critical path project
tasks. This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
None. 
FUTURE COMMISSION ACTIONS ANTICIPATED 
Authorization to award contract to design-build team for predesign/validation 
Authorization to begin design and construction; following validation of scope, cost and
schedule by the design-build team 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
February 25, 2013  IAF Program Briefing 
November 19, 2013  International Arrivals Facility Construction Management, testing
and inspection; surveying and locating and safety service agreements. 
July 23, 2013  International Arrivals Facility Project & Program Support; and Price
Factor Design Build Methodology authorization. 
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  Briefing on Airport Terminal Development Challenges at Seattle-
Tacoma International Airport. 
June 14, 2011  International Air Service Growth and Future Facility briefing. 
February 2, 2010   Briefing on South Satellite Passenger Growth and Facility
Considerations, Delta's Proposed Airline Lounge and Other Possible Future Aviation
Projects.