PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       4i 
ACTION ITEM 
Date of Meeting      July 12, 2016 
DATE:    July 5, 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 Add Phase 2 Scope to Meet
Continuing Rapid Growth 
(CIP #C800583) 
Amount of This Request:       $41,000,000   Source of Funds:     Future Revenue
Bonds 
Est. Total Project Cost:        $649,365,000 
Est. State and Local Taxes:      $43,600,000 
ACTION REQUESTED 
Request Commission authorization to add a portion of the IAF Phase II scope to the current
Phase I project. This scope will extend the sterile, pre-customs corridor on Concourse A in order
to provide two additional international-capable wide-body gates (Gates A3 and A4). The total
estimated cost of this added scope is $41,000,000, which will increase the total budget for IAF
Phase I from $608,365,000 to $649,365,000. Also request Commission authorization to increase
the authorized budget from $300,000,000 to $341,000,000 and for the Chief Executive Officer to
execute needed contract amendments and change orders as required to execute this scope. 

SYNOPSIS 
This request adds international capable aircraft gates with necessary sterile corridor connection 
to this project in order to meet existing year over year record growth, and to take advantage of
cost efficiencies of the current contract. These added gates were earlier anticipated and need to
be initiated now to be available for operational use in 2020 to meet growth needs.
On April 26, staff briefed the Commission that as international traffic continues to grow at a
record pace. On June 28 th staff briefed the cost of the added gates at $41 million.  The
Commission also asked what added scope might be necessary, which led to a discussion about
baggage claims and other amenities (described below) that are planned as part of a future
request.

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 2 of 7 
As the Airport engages 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 the
additional two gates to a future date based on the more moderate traffic growth known at that
time.
During the April 26 briefing, staff proposed that while the IAF is still in early schematic design
phase, it would be prudent to approve additional funding to convert the two Phase II Concourse
A gates to international wide-body "swing gates" capable of handling both domestic and
international arriving aircraft and passengers. That conversion would increase the number of
international wide-body gates from 18 to 20.
This request confirms the cost to incorporate this work is $41 million and requests authorization
to increase the total IAF cost from $608,365,000 to $649,365,000 to add the early execution of
this Phase II scope to the 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). Approval will increase
the current $300 million project authorization to $341 million. 
Staff will continue consideration of whether to accelerate design and construction of the
remaining Phase 2 scope  adding planned Carousels 6 and 7 in the new Customs Hall  as
raised in the June 28th briefing. [In addition, staff will work to clarify the issue of building for
capacity versus supporting the operations required to process increasing passenger volume. This
discussion will separate the scope of work appropriate for execution under the IAF design/build
contract and, for example, purchase of additional automated passport control (APC) kiosks or
Customs and Border Protection's (CBP) document verification officer (DVO) podiums that may
be required when the facility processing rate increases to 2,600.]  Staff will return in August to
present their findings supporting the conclusions theorized in the June 28th discussion. 
In a future Commission action staff will be requesting that the two remaining baggage claim
units (#6 and #7) planned for Phase II be moved into Phase I to be undertaken in the current
design-build contract. The $8 million request will complete the scope of work contemplated for
the new IAF.
BACKGROUND 
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 facilitatethe Port'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

Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 3 of 7 
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 delivered the Target Budget and Target Schedule, two
critical Validation Period deliverables, along with the many other reports and plans required
under the terms of the contract, completing the first phase.  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. During this period, the Design -Builder will continue to
work to improve on the Target Budget and Target Schedule in order to establish the GMP. 
PROJECT JUSTIFICATION AND DETAILS 
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. The IAF Program was planned to accommodate a peak hour passenger processing
capacity of 2,600 and 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.
Phase 2 included extending the sterile corridor on Concourse A to include providing two
additional wide-body, FIS connected gates (Gates A3 and A4) in the IAF arrivals hall. In order to
provide the additional wide-body capacity and operational flexibility to sustain operations in the
face of unanticipated growth and take full advantage of the contracts and resources already
mobilized to deliver Phase 1, this request adds a portion of Phase 2 scope to the current IAF 
design-build contract. 
Project Objectives 
Early execution of this Phase 2 work will accomplish the following objectives: 
Reduce risk of market volatility and escalation impacting price 
Provide two additional needed wide-body, FIS connected gates faster than alternatives 
Take advantage of resources already mobilized for the IAF project and eliminate
disruption of executing Phase 2 work in the future 
Enhance opportunity to coordinate construction sequencing with on-going operations
and minimize disruption 

Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 4 of 7 
Ensure uniformity in design (if built under a separate contract at a later date, there is no
guarantee that the same design team would be involved) 
Scope of Work 
Extension of the sterile corridor on Concourse A to add two additional wide-body, FIS connected
gates (Gates A3 and A4). This work also includes design and construction of the associated
infrastructure for these components: an additional "gate pod"  a structure housing the vertical
circulation associated with providing access for domestic passenger flow at Concourse A and
international passenger connection to the sterile corridor and FIS. Also included is all associated
site work and associated indirect and soft costs (e.g., design, general conditions, overhead and
profit, Washington state sales tax, and Port staff costs). 
This additional scope of work was previously programmed to be executed within Phase 2 as a
separate project. This request will provide for design and construction the maximum number of
FIS connected gates on SSAT and Concourse A. 
Schedule 
Procurement of long lead materials and equipment (e.g., steel and       3rd Quarter 2016 
passenger loading bridges) 
Start of construction of this scope of work                       3rd Quarter 2019 
Additional gates available for operational use                    2nd Quarter 2020 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                     $300,000,000          $0   $300,000,000 
Previous budget increase               $308,365,000              $308,365,000 
Current budget increase                 $41,000,000              $41,000,000 
Revised budget                     $649,365,000             $649,365,000 
Previous Authorizations                $300,000,000          $0   $300,000,000 
Current request for authorization            $41,000,000          $0    $41,000,000 
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. The budget increase will be transferred from the aeronautical allowance CIP,
C800404, resulting in no net change in the total airport capital plan. As presented to the
Commission on May 17, 2016, the funding plan includes $200 million of cash (Airport
Development Fund), $100 million of Passengers Facility Charges (PFCs) and $308 million of

Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 5 of 7 
future revenue bonds. This budget increase will be funded with additional future revenue bonds,
bringing the total to $341 million. Consistent with the funding strategy presented on May 17, the
Port plans to use sufficient PFCs to pay revenue bond debt service to maintain a competitive
Federal Inspection Services area (FIS) rate. Given that the FIS rate is charged to airlines on a per
passenger basis, and given the growth in arriving international passengers, it is not yet clear the
extent to which more or less PFCs would be used beginning in 2020 to pay revenue bond debt
service compared to the original financing plan. The decision on the use of PFCs in 2020 will be
made in 2019 when the 2020 budget is developed.  At that time, the Port will also have a better
understanding of then current peer airport FIS rates. 

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
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. 
Small Business 
Small business utilization efforts within the design and construction portions of this project will
be absorbed within the IAF project team efforts. The IAF project has a 17.5% small business
utilization goal, based on estimated total contract volume eligible to be sub-contracted, which
focuses on Small Contractor and Supplier (SCS) businesses.
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Status quo, maintain phased implementation strategy 
Cost Implications: Airline and operational cost impact not assessed 
Pros: 
(1) Saves $41M in current project costs 
(2) Provides opportunity for the SAMP to consider and prescribe solution 
Cons: 
(1) Strains the Airport's ability to sustain international service in a manner consistent 
with the Port's Century Agenda 
This is not the recommended alternative. 



Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 6 of 7 
Alternative 2  Postpone action until 3rd Quarter 2019, the end of the project, to execute a
change order to the IAF design/build contract to implement the sterile corridor extension. 
Cost Implications: $50M (current $41M project cost plus additional estimated $9M separate
design and procurement costs and escalation) 
Pros: 
(1) Postpones investment in airport infrastructure/facility 
(2) Provides opportunity for the SAMP to consider and prescribe solution 
Cons: 
(1) Dismisses current discussions with new market entrant airlines and number of
international gates Airport will need in 2021 
(2) Subjects Port to risk of market timing and substantial cost escalation (e.g., millions) 
(3) Increases challenge of sequencing the work and minimizing impact to on-going
operations 
This is not the recommended alternative. 
Alternative 3  Leverage IAF design and capacity to construct additional infrastructure/facility. 
Cost Implications: $41M 
Pros: 
(1)  Reduces risk of market volatility and escalation impacting price 
(2)  Takes advantage of resources already mobilized for the IAF project 
(3)  Provides additional needed wide body, FIS connected gates faster than alternatives 
(4)  Enhances opportunity to coordinate construction sequencing with on-going
operations and minimize disruption 
Cons: 
(1)  Requires accelerating the plan of finance 
(2)  Commits operations to enduring longer duration construction period for current
project completion  (e.g., structural steel and curtain wall are two required
components of this work and currently have a long lead order time of approx. 6 and
12 months respectively) 
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
Computer slide presentation. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
June 28, 2016 -Two Additional International Aircraft Gates at International Arrivals
Facility (IAF) to Meet Continuing Rapid Growth briefing. 

Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 5, 2016 
Page 7 of 7 
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. 
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 FutureAviation
Projects. 

Revised March 28, 2016  pjw