COMMISSION 
AGENDA MEMORANDUM                Item No.       4d 
ACTION ITEM                   Date of Meeting    November 8, 2016 
DATE:    November 1, 2016 
TO:     Ted Fick, Chief Executive Officer 
FROM:   Jeffrey Brown, Director AV Facilities and Capital Program 
Wendy Reiter, Director, Aviation Security, Airfield Security 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  Airport Automatic Baggage Tag Reader Replacement (CIP #C800802) 
Amount of this request:          $1,145,000 
Total estimated project cost:       $1,160,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to (1) execute contracts for
the purchase of equipment for the automatic baggage tag reader replacement project at
Seattle-Tacoma International Airport in an amount not to exceed $1,145,000 and (2) utilize Port
crews and small works contracts to perform construction, for a total estimated project cost of
$1,160,000. 
EXECUTIVE SUMMARY 
This project will improve reliability and maintainability of the airport's outbound baggage
system. The project will replace six obsolete Automatic Tag Readers (ATRs) at the Airport. ATRs
perform a critical function in the Airport's baggage handling system. ATRs use a laser array to
read the bar codes on the bag tags as baggage is conveyed through the system, enabling bags
to be directed to the correct destination. Malfunctioning ATRs severely hamper airline baggage
performance along with customer service by causing bags to be misdirected resulting in lost or
delayed bags. 
JUSTIFICATION 
This project contributes to the Port's Century Agenda goal to meet the region's air
transportation needs at the  Airport for the next 25 years.  Although not currently
malfunctioning, the existing ATRs have exceeded their useful lives and are no longer supported
by the manufacturer leaving them unmaintainable. Staff believed that these ATR's would last
until the Baggage Optimization project, but due to the schedule development of the project and
the decision by Accusort (the equipment manufacturer) to no longer support the existing
equipment with parts or technical support, a gap was realized. These new ATRs, which replace
the six obsolete devices, will be in place for over three years until the systems they are part of 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 4d____                    Page 2 of 4 
Meeting Date: November 8, 2016 
are replaced by the Baggage Optimization project at which time they will be utilized for
replacement parts or reused elsewhere. 
Replacing the ATRs will accomplish the following: 
(1)   Increase baggage system reliability 
(2)   Make the ATRs maintainable should an equipment fault arise. 
DETAILS 
Scope of Work 
The following items comprise the scope of the ATR replacement: 
(1)   Procure and install new ATRs; 
(2)   Modify baggage conveyor sides to accommodate new ATR; 
(3)   Install control wiring; 
(4)   Revise system programming (through Brock sole source); 
(5)   System commissioning; and 
(6)   Demo of existing ATRs. 
New ATRs will be installed on the C25 system (1), the C96 system (1), and the C88 system (4),
for a total of six (6) ATRs. 
Schedule 
This action requests construction authorization to enable ATR replacements to be in place prior
to Summer 2017 peak activity. Project will utilize Port Construction Services (PCS) in order to
meet the schedule requirements. This type of work has been performed by PCS in the past. 

Construction start                      2017 Quarter 1 
In-use date                          2017 Quarter 2 
Cost Breakdown                         This Request       Total Project 
Planning                                                   $15,000 
Construction                              $1,145,000         $1,145,000 
Total                                      $1,145,000          $1,160,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1 Do not proceed with this project and wait for Baggage Optimization to replace. 
Cost Implications: $0 
Pros: 
(1)   No capital expenditure. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 4d____                    Page 3 of 4 
Meeting Date: November 8, 2016 

Cons: 
(1)   Risk of failure from one or more of the existing ATRs resulting in poor customer
service and cost impacts to airlines from lost or delayed bags. Failure would also result
in costly corrective maintenance costs. 
This is not the recommended alternative. 
Alternative 2  Fund partial replacement of ATRs with longer service durations 
Cost Implications: $1,000,000 for C88 system (4 total) or $840,000 C25 and C96 systems (2
total) 
Pros: 
(1)   Partial ATR replacement would mitigate risk on some conveyance systems but not all. 
(2)   This strategy would save the additional cost of equipment procurement and electrical
scope for a substantial savings. 
(3)   This would enable Maintenance and the new equipment manufacturer to support
additional conveyor lines however all sortation would not be supported. 
Cons: 
(1)   Same con as Alternative 1. 
This is not the recommended alternative. 

Alternative 3  Replace six existing ATRs 
Cost Implications: $1,160,000, 
Pros: 
(1)   Increases system reliability and reduces the chance that a traveler's bags will be lost or
delayed due to failing equipment; 
(2)   Enables  maintenance  and  support  by  the  ATR  manufacturer  and  Aviation
Maintenance; and 
(3)   Protects Air Carriers from the cost of lost or late baggage caused by ATR malfunction. 
(4)   The equipment will increase reliability of these baggage systems, resulting in reduced
unplanned corrective maintenance costs. 
Cons: 
(1)   This equipment will be  replaced by the proposed Baggage Optimization project.
Although it may be possible to relocate this equipment in the future, current plans are
to keep it in place for approximately three years. 
This is the recommended alternative. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 4d____                    Page 4 of 4 
Meeting Date: November 8, 2016 

FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary          Capital      Expense        Total 
COST ESTIMATE 
Original estimate                      $1,800,000          $0    $1,800,000 
Cost reduction                       (-$640,000)               (-$640,000) 
Revised Estimate                     $1,160,000               $1,160,000 
AUTHORIZATION 
Previous authorizations                    $15,000          $0      $15,000 
Current request for authorization           $1,145,000          $0    $1,145,000 
Total authorizations, including this request     $1,160,000          $0    $1,160,000 
Remaining amount to be authorized             $0         $0         $0 
Annual Budget Status and Source of Funds 
This project was included in the 2016-2020 Capital Budget and Plan of Finance with a total
budget of $1,800,000. The funding source is the Airport Development Fund. The original budget
was decreased from $1.8M to a new value of $1.16M based upon a more accurate estimate
performed by Port Cost Estimators utilizing historical data. 
Financial Analysis and Summary 
Project cost for analysis         $1,160,000 
Business Unit (BU)            Terminal (Baggage System) 
Effect on business performance   NOI after deprecation will increase 
(NOI after depreciation) 
IRR/NPV (if relevant)           N/A 
CPE Impact                $0.02 
The costs are being amortized over three years due to likely replacement with the Baggage
Optimization project. 
Future Revenues and Expenses (Total cost of ownership) 
After replacement, the equipment will increase reliability of these baggage systems, resulting in
reduced unplanned corrective maintenance costs. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None 

Template revised September 22, 2016.