PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA                Item No.       6c 
ACTION ITEM                Date of Meeting    October 11, 2016 
DATE:  September 30, 2016 
TO:    Ted Fick, Chief Executive Officer 
FROM:  Ralph Graves, Senior Director, Capital Development 
David Brush, IAF Program Leader 
SUBJECT:  International Arrivals Facility (IAF) Authorization to Accelerate Phase 2
Execution (CIP #C800583) 
Amount of this request:            $11,000,000 
Total estimated project cost:         $660,365,000 
ACTION REQUESTED 
Request Commission authorization to add all of the balance of the IAF Phase 2 scope to the
current Phase 1 project. The total estimated cost of this added scope is $11,000,000, which will
increase the total budget for IAF from $649,365,000 to $660,365,000. Also request Commission
authorization for the Chief Executive Officer to execute needed contract amendments and change
orders as required to execute this scope. 
SYNOPSIS 
The Port contracted a Design-Build team, Clark/SOM, to design and construct a new IAF at the
Seattle-Tacoma International Airport using an alternative project delivery method, Progressive
Design Build. This request adds the balance of the building infrastructure and equipment
required for the facility to accommodate a peak hour passenger processing capacity of 2,600 in
order to meet existing year over year record growth, anticipated future growth and to take
advantage of cost efficiencies of the current contract. These facilities were earlier anticipated and
need to be initiated now to be available for operational use in 2020.
During the April 26 briefing, staff presented to the Commission that as international traffic at the
Airport continues to grow at a record pace and as the Airport continues to engage in
conversations with new international entrant carriers, there is a clear need to provide more
international capable gates than are currently planned as part of Phase I of the IAF project.
During the early programming of the IAF, planners discussed the timing associated with
maximizing the number of international wide-body gates, but deferred scalable program
components  e.g., two out of the total 20 programmed international gates and two out of the
total seven programmed bag claims - to a future date based on the more moderate traffic growth
known at that time.
On July 12, Commission approved staff's proposal to convert the Phase 2 Concourse A gates to
international wide-body "swing gates" capable of handling both domestic and international

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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 11, 2016 
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arriving aircraft and passengers, while the IAF is still in its schematic design phase. Commission
also directed that staff reconsider the phasing strategy for execution of the IAF program and
return with a recommendation on whether to accelerate the remainder of the Phase 2 scope of
work by executing it using the current contract as part of Phase 1.
Staff has confirmed that  the cost to incorporate this work is $11,000,000 and requests
authorization to increase the total IAF cost from $649,365,000 to $660,365,000 to add execution
of the entirety of Phase 2 to the current design-build contract. 
No airline majority-in-interest (MII) approval is required in support of this action in accordance
with the current Signatory Lease and Operating Agreement (SLOA III). 
PROJECT JUSTIFICATION AND DETAILS 
The IAF Program was planned to accommodate a peak hour passenger processing capacity of
2,600 and to provide a maximum number of FIS connected gates on SSAT and Concourse A.
Implementation of the program was divided into two phases based on projected future passenger
and service requirements. This request addresses a change in program execution strategy to
accommodate the dramatic growth the Airport is experiencing today compared to the 2015
growth forecast used in planning the program by adding the remainder of Phase 2 scope (see July
12, 2016, Commission agenda item 4i.) to the current Phase 1 contract for execution.
Project Objectives 
This initiative provides the opportunity, in advance of negotiation of the Guaranteed Maximum
Price (GMP), to enhance the IAF program as follows: 
Address risk of the Airport's continuing rapid growth outstripping the IAF's Phase 1
passenger processing capacity  the original planning projections on which the IAF
program was based did not anticipate the actual year over year growth experienced in
2015 and 2016. 
Take advantage of cost efficiencies by adding the execution of the balance of the Phase 2
scope using the current contract. 
Scope of Work 
The remaining scope of work currently programmed as IAF Phase 2 is comprised of the
following:
additional controls and feed lines to support the two claim devices (Carousels 6
and 7)
all work associated with systems and equipment required to support the two claim
devices (e.g., Baggage Information Display Systems (BIDS), signage, striping,
protection, security and access control, etc.) 
forty additional automated passport control (APC) kiosks at automated primary 
eleven additional Document Verification Officer (DVO) podia in the IAF arrivals
hall 

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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 11, 2016 
Page 3 of 6 
all associated indirect and soft costs (e.g., design, general conditions, overhead
and profit, Washington State sales tax, and Port staff costs) 
Schedule 
Activity 
Negotiate Guaranteed Maximum Price (GMP)   2016 Quarter 4 
Additional processing capacity available for    2020 Quarter 2 
operational use 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense       Total 
Original budget                     $608,365,000          $0   $608,365,000 
Previous Changes                    $41,000,000         $0   $41,000,000 
Current Change                     $11,000,000         $0   $11,000,000 
Previous authorizations                $341,000,000          $0   $341,000,000 
Current request for authorization            $11,000,000          $0    $11,000,000 
Total authorizations, including this request    $352,000,000          $0   $352,000,000 
Remaining budget to be authorized        $308,365,000          $0   $308,365,000 
Budget Status and Source of Funds 
This project was included in the 2016  2020 capital budget and plan of finance with a budget of
$608,365,000. As presented to the Commission on July 12, 2016, the funding plan includes
$200 million of cash (Airport Development Fund), $100 million of Passengers Facility Charges
(PFCs) and $349 million of future revenue bonds. This action will increase total program cost
from $649,365,000 to $660,365,000. The additional costs will be funded with future revenue
bonds. 
Financial Analysis and Summary 
The costs of the IAF will be recovered from the airlines through a charge on the use of the
facility.  Consistent with previous funding plans, the Port's goal is to maintain a competitive
Federal Inspection Services (FIS) rate compared to peer airports. Sufficient PFCs will be used to
pay ongoing revenue bond debt service to manage the FIS rate base, and thus the FIS rate.
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Accept status quo - Maintain current project phasing and execute Phase 2 as a
separate project in the future. 
Cost Implications: 
Pros: 
(1) Maintains current plan of finance assumptions 

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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 11, 2016 
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(2) Provides opportunity for the SAMP to consider and proscribe solution 
Cons: 
(1)  Misses the opportunity to leverage the efficiencies of the current Phase 1 contract 
(2)  Risks curtailing current airport growth by capping the facility's passenger
processing volume at 1,900 
(3)  Risks incurring a cost premium to add this scope after the GMP is executed 
This is not the recommended alternative. 
Alternative 2  Accelerate a portion of the Phase 2 scope of work but maintain scalable
approach  advance 1 of 2 bag claims, no additional APC kiosks or DVO podia. 
Cost Implications: $8,000,000 
Pros: 
(1)  Reduces cost commitment 
(2)  Provides opportunity for the SAMP to consider and proscribe solution 
Cons: 
(1)  Partially addresses risk that growth will outstrip design capacity but does not
eliminate Phase 2 construction and associated future impact to operations 
This is not the recommended alternative. 
Alternative 3  Authorize adding all of the balance of IAF Phase 2 scope to the current Phase 1
project. 
Cost Implications: $11,000,000 
Pros: 
(1) Addresses the need for additional processing capacity by the quickest and most
efficient means available the Port of Seattle 
(2) Approving this change prior to the commencement of the negotiation of the GMP in
November, will allow the IAF team to incorporate the work within the GMP. 
Cons: 
(1) Changes current plan of finance assumptions 
(2) Risks overbuilding the planned facility if current airport growth ceases and actual
passenger per peak hour rate subsides to less than 1,900 
This is the recommended alternative. 


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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 11, 2016 
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ATTACHMENTS TO THIS REQUEST 
Computer slide presentation. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
September 27, 2016  The Commission was briefed on IAF Reconsidering Phasing and Project
Update 
September 13, 2016  The Commission authorized IAF FAA Reimbursement Agreement 
July 12, 2016  The Commission authorized IAF to Add Phase 2 Scope to Meet Continuing
Rapid Growth 
June 28, 2016  The Commission was briefed on Two Additional International Aircraft Gates at
International Arrivals Facility (IAF) to Meet Continuing Rapid Growth briefing. 
May 17, 2016  The Commission was briefed on Plan of Finance Update. 
April 26, 2016  The Commission was briefed on IAF 1Q2016 Update. 
February 9, 2016 - The Commission was briefed on IAF 4Q2015 Update. 
December 8, 2015  IAF Guaranteed Maximum Price (GMP) Development Period Authorization
(presented in combination with NSAT authorization request). 
November 10, 2015  The Commission was briefed on IAF Update. 
August 11, 2015   The Commission lead a Special Meeting, Roundtable with Airline
Representatives. 
July 28, 2015  The Commission lead an IAF Forum. 
July 14, 2015  The Commission lead an IAF Forum. 
June 23, 2015  The Commission authorized Execution of the IAF Design-Build Contract. 
May 26, 2015  The Commission approved IAF Preliminary Funding Plan Motion.
April 28, 2015  The Commission authorized a Service Agreement for Commissioning Services. 
April 28, 2015  The Commission authorized Execution of a Lease Agreement with SEATAC
VENTURES 2010 LLC for International Arrivals Facility (IAF) Program Management
Office Space near Sea-Tac International Airport. 
February 24, 2015  The Commission authorized a Service Agreement for IAF Consultant
Program Leader. 
January 27, 2015  The Commission was briefed on IAF Funding Plan. 
January 27, 2015  The Commission approved IAF RFP Advertisement. 
January 13, 2015  The Commission was briefed on IAF Update. 
December 2, 2014  The Commission was briefed on IAF Scope and Budget Update. 
October 28, 2014  The Commission was briefed on IAF 3Q2014 Update. 
August 19, 2014  The Commission was briefed on IAF 2Q2014 Update. 
August 5, 2014  The Commission authorized IAF RFQ Advertisement. 
July 22, 2014  The Commission was briefed on IAF Progress. 
June 10, 2014  The Commission was briefed on IAF 1Q2014 Update. 
May 6, 2014  The Commission was briefed on IAF Project Delivery. 
April 22, 2014  The Commission was briefed on Capital Program. 
March 11, 2014  The Commission authorized IAF Master Planning. 
February 25, 2014  The Commission was briefed on IAF Program. 

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Ted Fick, Chief Executive Officer 
October 11, 2016 
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November 19, 2013  The Commission authorized IAF Construction Management, testing and
inspection; surveying and locating and safety service agreements. 
July 23, 2013  The Commission authorized IAF Project & Program Support; and Price Factor
Design-build Methodology. 
July 9, 2013  The Commission was briefed on Sea-Tac Airport International Arrivals Facility. 
July 9, 2013  The Commission was briefed on Alternative Public Works Contracting. 
April 9, 2013  The Commission was briefed on Sea-Tac Airport International Arrivals Facility. 
June 26, 2012  The Commission was briefed on Airport Terminal Development Challenges at
Seattle-Tacoma International Airport. 
June 14, 2011  The Commission was briefed on International Air Service Growth and Future
Facility. 
February 2, 2010  The Commission was briefed on South Satellite Passenger Growth and
Facility Considerations, Delta's Proposed Airline Lounge and Other Possible Future Aviation
Projects. 












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