PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      5c 
Date of Meeting    January 24, 2012 

DATE:    January 3, 2012 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Dave Soike, Director, Aviation Facilities and Capital Program 
Wayne Grotheer, Director, Aviation Program Management Group 
SUBJECT:  Construction of Baggage Claim Device 14 and Lower Inbound Conveyor
Replacement (CIP #C800374) 
Amount of This Request: $3,361,000        Source of Funds: Existing revenue bonds 
and/or future revenue
bonds 
State and Local Taxes Paid: $254,000        Jobs Created: 18 (Total Project) 
Total Estimated Cost: $3,900,000 
ACTION REQUESTED: 
Request Port Commission authorization for the Chief Executive Officer to bid and award a major
construction contract for the Baggage Claim Device 14 and Lower Inbound Conveyor
Replacement at Seattle-Tacoma International Airport (Airport). The amount of this request is
$3,361,000. The total cost of the project is $3,900,000. 
SYNOPSIS: 
Baggage claim device 14 is used exclusively by Alaska and Horizon Airlines and experiences
constant, heavy use since these airlines represent about half of the passenger traffic using the
Airport. The useful service life of a baggage claim device is 15 years. Baggage claim device 14
has been in use for 18 years and is worn out to the point of requiring major repair to maintain
reliable customer service. Original manufacturer replacement parts are unavailable. Access to the
lower feed conveyor for maintenance and jam clearing is difficult and poses a safety hazard. 
This project will replace the sloped plate baggage claim device 14 and associated controls, in
addition to removing the lower feed conveyor and replacing it with a new overhead feed. Doing
so will avoid emergency repair costs and service disruptions due to downtime for repairs.
Updating baggage claim device 14 will help to improve baggage delivery times for the airlines.
The amount of this request is $3,361,000 for major construction, and the total cost of the project
including previous authorizations is $3,900,000.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
January 3, 2012 
Page 2 of 5 
BACKGROUND: 
Baggage claim device 14 is a sloped plate device that is fed by two baggage conveyors, one from
overhead and one from under the floor. This project will replace the device, and associated
controls and will install a second overhead feed conveyor. The existing overhead feed conveyor
and associated controls will be updated to current technology. The existing lower feed conveyor
is routed through the overhead of the satellite train maintenance facility transfer table area and
over an electrical power center in the north service tunnel. Access to these conveyors for
maintenance and jam clearing is difficult and dangerous due to their location and lack of
adequate catwalks. The existing layout of these conveyors causes excessive jams. To clear jams
on these conveyors, maintenance personnel must crawl down the decline conveyor. In addition,
these conveyors were installed in 1971 and are older, narrower conveyors that have unavailable
or hard-to-find parts. The lower feed conveyor will be removed and a new upper feed will be
added to serve baggage claim device 14. 
PROJECT JUSTIFICATION: 
This baggage claim device 14 and its associated feed conveyors are used exclusively by Alaska
and Horizon and experience constant use that has worn out the equipment. Safe access for
Airport maintenance workers needs to be improved. 
Project Objectives: 
Replace sloped plate baggage claim device 14. 
Replace control system to eliminate obsolete equipment. 
Reduce emergency repair costs. 
Reduce baggage jams and decrease the maintenance response requirements. 
Update critical system redundancy to ensure availability for use by the airlines. 
Improve air carrier baggage delivery times. 
Add overhead feed conveyor to accommodate larger luggage and provide a safe working
environment for maintenance. 
Remove regulated materials as required using Port Construction Services. 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
Replace existing baggage claim device 14 sloped plate carousel unit with a new sloped plate unit
of similar size and configuration. Replace existing lower inbound conveyor system with new and
rerouted second overhead inbound conveyor. Update the existing overhead feed conveyor to
current technology. Work will include demolition, structural, fire protection, lighting, heating,
ventilation and electrical upgrades.
Schedule: 
Commission Authorization to Bid                  January 2012 
Bid Advertisement                          February 2012 
Construction Start                            September 2012 
Construction Complete                       December 2012

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
January 3, 2012 
Page 3 of 5 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary: 
Original Budget                           $3,900,000 
Revised Budget                          $3,900,000 
Previous Authorizations                       $539,000 
Current request for authorization                 $3,361,000 
Total Authorizations, including this request          $3,900,000 
Remaining budget to be authorized                    $0 
Project Cost Breakdown:               This Request    Total Project 
Construction Costs                        $2,700,000      $2,700,000 
Sales tax                                  $254,000       $254,000 
Port engineering professional services                  $0       $285,000 
Aviation PMG and other soft costs               $357,000       $611,000 
Regulated Material Expense (Expense)             $50,000       $50,000 
Total Capital and Expense                 $3,361,000     $3,900,000 
Budget Status and Source of Funds: 
This project is included in the 2012-2016 capital budget and plan of finance as a committed 
project, CIP # C800374. The funding source will be existing revenue bond proceeds and/or
future revenue bonds. 
Financial Analysis and Summary: 

CIP Category               New/Enhancement 
Project Type                 Infrastructure Renewal/Replacement 
Risk adjusted Discount rate       N/A 
Key risk factors                N/A 
Project cost for analysis          $3,900,000 
Business Unit (BU)            Terminal, airline equipment 
Effect on business performance     NOI after depreciation will increase 
IRR/NPV               N/A

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
January 3, 2012 
Page 4 of 5 
Will increase CPE by $0.02 in 2013. However,
CPE Impact 
no change to business plan forecast since this
project was included. 

Lifecycle Cost and Savings: 
Annual Operating and Maintenance costs are not anticipated to increase or decrease with this
project.
ENVIRONMENT AND SUSTAINABILITY:
This project demonstrates environmental sustainability by improving existing Port assets and
better utilizing existing resources. This project has a generally positive effect on the environment
to the extent that automated baggage handling systems reduce Airport and airline reliance on less
energy efficient baggage conveyance systems. Passengers will benefit from faster, more reliable,
conveyance systems. 
STRATEGIC OBJECTIVES: 
This project promotes the Port's strategic goals to "Ensure Airport and Seaport Vitality" and "Be
a Catalyst for Regional Transportation Solutions" by providing the airlines with greater facility
flexibility. Flexible operations will allow for greater and more efficient utilization of the
Airport's existing facilities. The project provides enhanced capacity and flexibility in critical
baggage infrastructure, especially for the Airport's largest customer. 
BUSINESS PLAN OBJECTIVES: 
The aeronautical business strategy aims to meet the needs of our airline customers and the
traveling public through cost effective means. Minimizing additional terminal construction by
making new operational improvements with up-to-date equipment and technology helps to
minimize costs to the airlines. The use of technology and thoughtful long-term planning are key
elements of the strategy. 
TRIPLE BOTTOM LINE SUMMARY: 
This project saves the Port the future cost of repairing obsolete conveyor equipment, supports the
Port's goal to standardize conveyor equipment, and provides the flexibility the Airport needs to
operate more efficiently. The traveling community will also benefit from increased airline
availability to modern, functional baggage equipment. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
ALTERNATIVE 1: Proceed with bid and award a major construction contract for Baggage
Claim Device 14 and Lower Inbound Conveyor Replacement. This is the recommended action.
ALTERNATIVE 2:  Do nothing: Leaving the baggage systems as-is will negatively impact
daily airline baggage operations, maintenance repairs, safety and the travelling public since
baggage deliveries will become less reliable. This action is not recommended.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
January 3, 2012 
Page 5 of 5 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
None. 
PREVIOUS COMMISSION ACTIONS: 
On March 25, 2011, the Port Commission authorized the Chief Executive Officer to proceed
with design of the Baggage Claim Device 14 and Lower Inbound Conveyor Replacement at
Seattle-Tacoma International Airport (Airport).