PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4c 
ACTION ITEM 
Date of Meeting     April 14, 2015 
DATE:    April 6, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:   David Soike, Director, Aviation Facilities and Capital Program 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  C60-C61 Baggage Handling Systems Modifications Project at Seattle-Tacoma
International Airport (CIP #C800168) 
Amount of This Request:             $0   Source of Funds:   Airport Development
Fund and future
Est. Total Project Cost:         $11,864,825 
revenue bonds 
Est. State and Local Taxes:        $722,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to: 
(1) Adjust the scope of work for the C60-C61 Baggage Handling System (BHS)
Modification project to include design and construction necessary for installation of an
additional Explosive Detection System (EDS) machine, the addition of tag readers, and
enhanced reporting; 
(2) Authorize the use of Port crews in support of the project.
SYNOPSIS 
This authorization adds scope items to meet airline capacity needs and requests, however the
project has progressed very well so far such that added budget authorization is unnecessary.
The existing C60-C61 BHS project is 97 percent complete and it implemented upgrades to the
baggage handling conveyor system, increased baggage make-up capacity to allow more airline
baggage tugs be loaded simultaneously, and updated the computerized control system. 
Several airlines such as Delta Air Lines, Virgin America, US Airways, and United Airlines 
utilize the system and are appreciative of the improvements. Delta Air Lines is the largest user of
this system and has requested additional work on the C60-C61 BHS. The requested scope
increase would add one EDS machine to increase screening throughput capacity that is necessary
to meet the airline's growing summer peak loads. The added EDS machine would help meet the
growing baggage volume, and it would help all the airline users in turn by improving throughput

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
April 6, 2015 
Page 2 of 6 
to help ensure that checked bags are properly screened and make it to the planes of all the
respective airline users in a timely manner.
The Port has reached an agreement with Transportation Security Administration (TSA) such that
they will provide the additional EDS machine and the required certification of the machine in
order for it to begin operation. This will be provided at TSA cost and is not included within this
authorization request.
The added scope of work requested includes additional tag readers that will be added to the
overall conveyor system for improved baggage tracking and additional computer reporting 
features. 
The added scope of work is approximately $1,227,120; however; this request does not require
additional funding. The overall $11,864,825 authorized project budget has enough savings to
cover this added scope that is similar to work completed earlier in the project. After completion
of this added scope of work to meet airline needs, the projects forecasts that remaining savings
may total $779,834 as detailed in the later financial section.
BACKGROUND 
The C60-C61 BHS serves the Airport's Concourse A and South Satellite. It is the Airport's
oldest outbound individual baggage system and is the second busiest airport system in that it
transports over three million bags per year.
The recently completed C60-C61 BHS project has increased baggage make-up capacity for the
airlines and improved reliability.  The completed project has also performed two other
improvements: first it updated the Automatic Tag Readers (ATRs) that read baggage tags used
to track and direct bags through the system, and second it provided a new and improved 
computerized baggage controls and reporting system. The additional scope being added as part
of this request is similar in that it will increase the number of ATR's and provides added
improvement to the computerized controls and reporting system. 
During construction of the C60-C61 BHS project, Delta Air Lines established Seattle as a new
international hub which has increased numbers of wide body aircraft and therefore added high 
demand baggage peaks of international transfer bags that require additional EDS screening. Due
to Delta's flight increases, the C60-C61 system requires the additional EDS machine to be
inserted into the system for added screening capacity. This added capacity aids all airline users
of the system, not just Delta.
PROJECT JUSTIFICATION AND DETAILS 
Due to Delta's summer flight increases, the additional scope to add a new EDS is required to
meet baggage screening demands. The current conveyor systems configuration and controls will
require modifications to accommodate the new EDS machine.  The additional tag readers and
enhanced reporting will increase tracking and reporting functionality for the system that will

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
April 6, 2015 
Page 3 of 6 
benefit the Port and multiple airlines. The improved computerized controls will enable the EDS
to operate at full capacity.
Project Objectives 
The addition of the EDS machine and associated computer controls is a critical
component to our existing system to meet the airlines' increasing demand for screening
capacity in time for the summer peak. 
The addition of tag readers at the oversize screening process will improve tracking and
reporting. 
Scope of Work 
The additional scope of work would include the following: 
Design to modify the existing conveyor for the EDS machine, phasing and design support
through construction and testing. The design would be performed through an existing
design contract.
Port crews and small works contracts will perform systems modifications and assistance
through system testing. 
Port crews and small works contracts will perform, purchase and install the tag readers. 
TSA will provide the EDS machine and certification of the machine. 
Modifications to the controls and enhanced reporting will be contracted directly. 
Schedule 
The goal of the project is to implement and complete design and construction of the EDS
machine prior to the summer peak, June 15, 2015, or as soon thereafter as possible
Implementation of the EDS machine addition is pending TSA delivery of provided equipment. 
The installation of the tag readers and enhanced reporting is expected to be completed in the
fourth quarter of 2015. 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                     $10,969,000          $0   $10,969,000 
Budget Increase (10/2013)                 $895,825          $0     $895,825 
Revised Budget (11/2013)               $11,864,825         $0   $11,864,825 
Project Savings (2014)                 ($1,000,000)          $0   ($1,000,000) 
Current Budget Increase                  $220,166          $0     $220,166 
Revised Budget                     11,084,991         $0   $11,084,991 
Previous Authorizations                 $11,864,825          $0   $11,864,825 
Current request for Authorization                 $0          $0          $0 
Total Authorizations, including this request    $11,864,825          $0    $11,864,825

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
April 6, 2015 
Page 4 of 6 
Remaining budget to be Authorized              $0         $0         $0 
Estimated Project Savings                 $779,834          $0     $779,834 
Total Estimated Project Cost             $11,084,991          $0   $11,084,991 
Project Cost Breakdown                     This Request       Total Project 
Design                                      $0         $2,052,966 
Construction                                    $0         $8,310,025 
State & Local Taxes (estimated)                        $0          $722,000 
Total                                           $0         $11,084,991 
Budget Status and Source of Funds 
The current project is approximately 97% complete and is anticipated to be completed by the end
of April 2015. The project received a favorable low bid and was executed with minimal change
orders leaving the current budget with capacity to incorporate the added scope; therefore this
additional project scope will not require additional funds.
The project gave back $1,000,000 for a revised project budget of $10,864,825. The estimated
cost at completion (EAC) of the current scope is $9,857,871. The estimated cost of the added
scope is $1,227,120. The total estimated project cost at completion is $11,084,991 and estimated 
total project savings of $779,834. 
The funding source for this additional scope will be the Airport Development Fund and/or
revenue bonds to be issued in 2015. 
Financial Analysis and Summary 
CIP Category             Renewal/Enhancement 
Project Type              Security 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        $1,227,120 (new scope) 
Business Unit (BU)          Terminal  Baggage Equipment 
Effect on business performance  NOI after depreciation will increase 
IRR/NPV             N/A 
CPE Impact             $.01 in 2016 
Lifecycle Cost and Savings 
The renovations will increase screening  capacity and increase availability, but will not
appreciably  decrease the number of preventative maintenance activities performed on the
systems.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
April 6, 2015 
Page 5 of 6 
STRATEGIES AND OBJECTIVES 
This project promotes the Port's Century Agenda objectives to make Sea-Tac Airport the West
Coast "Gateway of Choice" for international travel, meet the region's air transportation needs at
Seattle-Tacoma International Airport for the next 25 years, and encourage the cost-effective
expansion of domestic and international passenger and cargo services. 
TRIPLE BOTTOM LINE 
Economic Development 
This project will increase the screening capacity of the existing system to serve Airlines' future
growth. This project improves the efficiency of the existing systems. 
Environmental Responsibility 
This project demonstrates environmental sustainability by improving existing Port assets to
better utilize existing resources. 
Community Benefits 
This project will help enable airline activity to grow at the airport, and that helps increase vitality
across neighboring communities.
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Maintain status quo. 
Cost: $0 
Pro: The Port would delay cost expenditures for design and construction, thereby enabling the
budget to be used for other purposes.
Con: Without adding the EDS machine the Port will not meet the Airlines' operational needs
and will have insufficient screening capacity to meet summer peak bag loads causing some
travelers' bags to be delayed to later flights. 
Alternative 2)  Proceed with design and installation of the additional EDS machine and added
tag readers. 
Cost: $1,227,120 
Pro: This option will help meet airlines' growth and customer service needs. This option would
also reduce operational impacts during future summer peak travel seasons, however the work
will cause disruption during portions of this 2015 season. 
Con: The immediate operational impacts to all airlines operating on the C60-C61 system would
be a shutdown to an operating floor level make-up device for approximately four weeks to
enable delivery and installation of the EDS machine in the mezzanine space above the make-up
device.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
April 6, 2015 
Page 6 of 6 
The recommendation is to pursue Alternative 2 to meet airline growth needs. 
ATTACHMENTS TO THIS REQUEST 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
May 22, 2012  C60-C61 Baggage Handling Systems Modifications Authorization for
Design 
November 5, 2013  C60-C61 Baggage Handling Systems Modifications Authorization
for Construction