4f

PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       4f 
ACTION ITEM 
Date of Meeting    September 13, 2016 
DATE:    September 2, 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 Execute FAA
Reimbursement Agreement 
(CIP #C800583) 
Amount of This Request:               $0 
Est. Total Project Cost:           $649,365,000 
Est. State and Local             $46,829,500 
Taxes: 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to execute a Reimbursement
Agreement between the Federal Aviation Administration (FAA) and the Port of Seattle.
Reimbursement to the FAA under this agreement is estimated at $396,248. 
SYNOPSIS 
Existing FAA Fiber Optic Transmission System (FOTS) cables located in the South Ground
Transportation (GT) Lot must be relocated to accommodate the new International Arrivals
Facility (IAF). This Agreement provides reimbursement to the FAA for their required oversight
during design, construction, activation and acceptance of the relocation of FAA infrastructure.
Costs associated with relocation of the FAA FOTS new ductbank and fiber optic cable are
included in the IAF Target Budget and the current authorization. The FAA has estimated costs
associated with the Agreement at $396,248. They require prepayment of the full amount and 
will return any funds not used.
BACKGROUND 
Work to refine IAF's design continued throughout spring of 2016. As part of this design
refinement the Design-Builder identified the FAA FOTS (Fiber Optic transmission System)
housed in the communications ductbank as infrastructure that would need to be relocated. The
Airport and FAA came to an agreement to relocate the FOTS cable. 

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 2, 2016 
Page 2 of 6 

The Project team met with the FAA to discuss the relocation of the ductbank housing the FAA
FOTS. The FAA agreed to allow the Port to relocate the ductbank as part of the IAF project.
The FAA indicated that it required oversight of all aspects of the design and would be providing
full time inspection of the ductbank and fiber installation activities through activation of the new
fiber optic cable. 
In July 2013, the Commission approved preliminary funds to program a replacement of the
existing under-sized and aging Federal Inspection Service (FIS) facility in the South Satellite
(SSAT) with a new IAF that will serve the Airport well into the future and facilitate thePort's 
Century Agenda objective to make the Airport the West Coast "Gateway of Choice" for
international travel. The Commission also authorized use of an alternative project delivery
method called Progressive Design Build for the IAF program. This method is newly available
for use by public agencies in Washington State and allows the Port to select a design-build team
based mainly on their qualifications with competitive pricing on certain commercial terms (e.g.,
fee, insurance, bond) as an additional selection factor.
The Port contracted with Clark/SOM as the Design-Builder to undertake and successfully deliver
this project. The contract with Clark/SOM is a phased contract covering three distinct periods:
the Validation Period, the Guaranteed Maximum Price (GMP) Development Period (including
some preliminary base building construction e.g., site utilities and footings and the purchase of
long lead items e.g., steel), and the GMP Execution Period (full build). 
On November 17, 2015, Clark/SOM submitted the validation deliverables. One of the
deliverables, the Initial Basis of Design Documents, included the development of an early
schematic design. In the development of this design the Design-Builder identified existing
underground utilities within the foot print of the structure that would require relocation to
facilitate construction. On December 8, 2015, the Commission approved $275.5 million for the
program to amend the Design-Builder's contract, via a planned Post-Validation Amendment and
to initiate the second phase - the GMP Development Period. That Amendment was executed in
January, 2016 launching the GMP Development Period and start of design.

PROJECT JUSTIFICATION AND DETAILS 
This request addresses authorization to execute the Reimbursement Agreement between the FAA
and the Port which provides a payment mechanism for FAA to perform required oversight,
activation and acceptance of the new FOTS route.
Project Objectives 
Existing FAA fiber optic cable in the South GT lot along Concourse A must be relocated to
accommodate the new IAF building. 

Revised March 28, 2016

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 2, 2016 
Page 3 of 6 
Multiple IAF foundation design alternatives were evaluated. The lowest cost alternative
was chosen and requires the relocation of the fiber optic cable.
FAA approval is required for any change to the FAA FOTS. 
Scope of Work 
The design, relocation and activation of the ductbank is included in the scope of work to be
performed under the contract with the IAF Design- Build team.
This authorization permits execution of a Reimbursement Agreement between the FAA and the
Port and provides a payment mechanism for the FAA to perform required oversight, activation
and acceptance of the new FOTS route.
Schedule 
Complete the design of the ductbank relocation                  3rd Quarter 2016 
Start of construction of this scope of work                       4rd Quarter 2016 
Activate Fiber Optic Cable and return to service                   1st Quarter 2017 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                     $300,000,000          $0   $300,000,000 
Previous budget increase               $349,365,000          $0   $349,365,000 
Current budget increase                        $0          $0          $0 
Revised budget                     $649,365,000          $0   $649,365,000 
Previous Authorizations                $341,000,000          $0   $341,000,000 
Current request for authorization                  $0          $0          $0 
Total Authorizations, including this request   $341,000,000          $0   $341,000,000 
Remaining budget to be authorized        $308,365,000          $0   $308,365,000 
Total Estimated Project Cost            $649,365,000          $0   $649,365,000 
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 does not represent a budget
increase but will utilize unallocated funds within the total estimate project costs.
STRATEGIES AND OBJECTIVES 
This project addresses three strategic objectives of the Port's Century Agenda:  to advance this
region as a leading tourism destination and business gateway by making Seattle-Tacoma

Revised March 28, 2016

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 2, 2016 
Page 4 of 6 
International Airport the West Coast "Gateway of Choice" for international travel, be the
greenest and most energy efficient port in North America, and, in the process of delivering the
IAF, to provide opportunities for increased utilization of small businesses by the Port. 
The execution of the Reimbursement Agreement between the FAA and the Port provides a
payment mechanism for FAA to perform required oversight, activation and acceptance of the
new FOTS route. The agreement will allow the Port to relocate the FAA FOTS, making way for
the construction of the IAF. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Redesign the IAF building footprint to avoid relocation of the FAA cable and
therefore the need to enter into a reimbursement agreement with the FAA. 
Cost Implications: The next lowest foundation alternative added approximately $4M-$6M
in foundation and structural changes. This would require a complete foundation redesign
and would have a significant schedule impact.
Pros: 
The Port would not require a contract with the FAA for FAA oversight of
FAA fiber optic cable relocation. 
Cons: 
Redesign and reprogramming for the IAF building to avoid the FAA cable
would considerably exceed the costs of the currently proposed reimbursement
and would delay completion of the project. The IAF building may have to be
moved to a completely new location. 
This is not the recommended alternative 

Alternative 2  Include relocation of the FAA cable as part of the IAF project's work and enter
into a reimbursement agreement with the FAA for their oversight. 
Cost Implications: Up to $396,248. 
Pros: 
The design-build contractor can perform the FAA cable move on their own
schedule, as part of their already planned utility relocation work. 
The Port would comply with the FAA's requirement to provide FAA
oversight for relocations of their fiber. 
Costs for this reimbursement are already included in the IAF's target budget. 


Revised March 28, 2016

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 2, 2016 
Page 5 of 6 
Cons: 
The Port will spend up to $396,248 for FAA oversight that could be
considered duplicative to the oversight the Port and IAF design-build team are
already providing as part of their management of the IAF project. 
This is the recommended alternative 
ATTACHMENTS TO THIS REQUEST 
None 

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
July 12, 2016 - Authorization to Add Phase 2 Scope to Meet Continuing Rapid Growth. 
June 28, 2016 -Two Additional International Aircraft Gates at International Arrivals
Facility (IAF) to Meet Continuing Rapid Growth briefing. 
May 17, 2016  Plan of Finance Update briefing. 
April 26, 2016  IAF 1Q2016 Briefing. 
February 9, 2016 - IAF 4Q2015 Briefing. 
December 8, 2015 - IAF Guaranteed Maximum Price (GMP) Development Period
Authorization (presented in combination with NSAT authorization request). 
November 10, 2015  IAF Update. 
August 11, 2015  Special Meeting, Roundtable with Airline Representatives. 
July 28, 2015  IAF Forum. 
July 14, 2015 - IAF Forum. 
June 23, 2015  Authorization to Execute a Design-Build Contract. 
May 26, 2015  IAF Preliminary Funding Plan Motion.
April 28, 2015 - Service Agreement for Commissioning Services. 
April 28, 2015  Request Authorization to Execute Lease Agreement with SEATAC
VENTURES 2010 LLC for International Arrivals Facility (IAF) Program Management
Office Space near Sea-Tac International Airport. 
February 24, 2015  Service Agreement for IAF Consultant Program Leader. 
January 27, 2015  IAF Funding Plan. 
January 27, 2015  IAF RFP Advertisement. 
January 13, 2015  IAF Update. 
December 2, 2014  IAF Scope and Budget Update. 
October 28, 2014  IAF Q3 Quarterly Briefing. 
August 19, 2014  IAF Q2 Quarterly Briefing. 
August 5, 2014  IAF RFQ Advertisement. 
July 22, 2014  IAF Progress Briefing. 
June 10, 2014  IAF Update and Quarterly Briefing. 
May 6, 2014  IAF Project Delivery Briefing. 

Revised March 28, 2016

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 2, 2016 
Page 6 of 6 
April 22, 2014  Capital Program Briefing. 
March 11, 2014  IAF Master Planning Authorization. 
February 25, 2014  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. 











Revised March 28, 2016

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