PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      5c 
ACTION ITEM 
Date of Meeting     January 7, 2014 
DATE:    December 20, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   David Soike, Director, Aviation Facilities and Capital Program 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  NorthSTAR Program   North Satellite Refurbish Baggage System Project
(CIP#C800555) 
Amount of This Request:        $6,253,000   Source of Funds:  Airport Development
Fund, Existing Bonds
Est. Total Project Cost:         $22,000,000 
and Future Revenue
Bonds 
Est. State and Local Taxes:       $1,159,000 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to increase the project
authorization of the North Satellite Refurbish Baggage System Project in the amount of
$6,253,000 for higher estimated project costs in addition to the previously authorized 
$15,747,000 for a total project authorization of $22,000,000.
SYNOPSIS 
This request for authorization is within the existing budget earlier identified for the Commission
and is within the annual capital plan of finance budget that was earlier approved by Commission 
in the 2014 budget process.  This project is one of many that support the consolidation and
growth of Alaska Air Group (AAG). This request for additional authorization is a result of final
detailed design work that has occurred between September when the Commission last provided
authorization and now. During this time, investigation and final design of the aging baggage
conveyance system have determined it is necessary to consolidate bag-screening functions to
minimize outages, modify manual encoding stations, perform abatement of regulated hazardous
materials, and provide contingency for the project.
AAG is now using all gates at the North Satellite, including the gate locations formerly occupied
by United Airlines. This project will refurbish existi ng baggage systems in support of AAG's
expanding operations at the North Satellite and continued use of Concourse D. AAG's baggage
volumes are an estimated five times greater than United's requirements in recent years. The
work will extend the service life for portions of the C92 Concourse D baggage systems, C88
North Satellite systems, and C88 tunnel systems. This project is a component of the North Sea-

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 10, 2013 
Page 2 of 7 
Tac Airport Renovation (NorthSTAR) program and is included in the 2014-2018 capital budget
and plan of finance. 
The project will replace aging conveyor belts, motors, drives, and controls of the existing C88
and C92 systems, as required to improve reliability and provide greater functionality. The
project will provide significant operational benefits to AAG including potentially increasing the
rate of speed for certain conveyers. The Port and AAG worked together to develop evaluation
criteria and metrics to minimize component replacements and costs to refurbish the systems.
During the refurbishment, the Port and AAG staff will continue to work collaboratively to refine
selection of component replacements to improve functionality. 
BACKGROUND
As part of the Airline Realignment and United Airlines' relocation fromthe North Satellite to
Concourse A, AAG's baggage handling consultant evaluated the existing systems and conditions
and prepared a detailed analysis of each system's performance requirements to meet future
baggage volumes. These volumes are based on AAG's future growth projections. The scope of
work for this project is a result of AAG's previous study and Port staff input. It represents a
critical component in providing improved baggage handling systems for AAG. AAG prefers to
continue all baggage makeup operations at the C92 system under Concourse D to allow for early
completion of the North Satellite baggage refurbishment prior to its use. The C88 system that
connects to and serves the North Satellite will be shut down for limited durations as coordinated
closely with AAG operations during construction to minimize impacts to AAG and Airport
operations and to allow for early completion of the refurbishment. 
The typical (or standard) design life of a baggage system is 15 years. The C92 system is 21
years old. This project will allow the Port to extend the useful life of the system to satisfy the
customer's requirements. This project is being coordinated with the Checked Baggage
Optimization Project. The physical work may be completed by a construction contract within
the Optimization project. Port and AAG staff will work together to coordinate both projects to
include the most beneficial and cost-effective elements. 
The current C88 tunnel systems and C88 North Satellite systems are nearly 25 years old. The
longevity of the C88 system can be attributed to: 1) the relatively slow current running speed of
the conveyors, resulting in minimal wear on the conveyor components; 2) the current low
demand on the system of approximately 3,000 bags per day on a system designed for up to
15,000 bags per day; and 3) the proactive and extensive maintenance program of the existing
system. 
On September 24, 2013, the Port Commission authorized an additional $11,987,000 for
advertising for bids, construction and for Port crews to perform baggage tunnel conveyor work.
This authorization was prior to completion of the final design documents and final scope
decisions from the review of the C92 Failure Analysis due to schedule and authorizing for port
crew work. The design is being finalized and project is now estimated at $20,000,000; higher
than the $15,747,000 estimate in the previous authorization. The increased cost is the result of
refined design details and the cost to: 1) construct the consolidated baggage screening office that

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 10, 2013 
Page 3 of 7 
will minimize conveyor downtime during the future North Satellite Renovation project, 2) 
modify the baggage manual encoding station layout to meet current Airport standards, and 3)
abate additional regulated materials for the consolidated baggage screening office based on a
survey of this office. The consolidated baggage screening office was included in the September
24, 2013 Commission Authorization. E ven though the cost has risen significantly, it is important
to maintain the efficiency of Alaska Airlines baggage operations because the office houses the
central monitoring and controls for the North Satellite conveyor system. The estimate for this
scope was not fully vetted by the design team. The scope of the manual encode station layout
was found not to meet current Port standards and the new layout is central to AAG's operational
efficiency. 
The request for the additional $6,253,000 covers the higher project cost and includes a project
contingency of $2,000,000 for additional work for the C92 baggage system and abatement of 
additional incidental regulated materials, which brings  the total project authorization to
$22,000,000. This provides a $2,000,000 reserve. Staff has determined Port crews will perform
additional work on the C92, Concourse D baggage system. 
PROJECT JUSTIFICATION AND DETAILS 
The volume of AAG's projected baggage would be too heavy a burden on existing systems,
therefore improvements are required.
Port Maintenance provided statistical data tying volume of passenger traffic to critical failure of
conveyors. Although the data cannot quantify impacts to airline operations, it shows that with
increasing AAG bag traffic there is increased failure frequency potential of critical components.
Currently, at peak loads, the system has a critical failure once every three days. This current
peak load is AAG's baseline. If refurbishment of the conveyors is not completed before the
increased demand, it is reasonable to expect there will continue to be a critical failure at least 
once every three days at baseline levels, with an increased frequency of critical failures during
AAG's peak loads. As a result of this detailed analysis, AAG approved the addition of a
redundant recirculation conveyor at the C88 systems and construction of other scope within the
North Satellite.
Another system improvement addressed in this project is avoiding the congestion of the C1
sortation loops. Currently, all transfer bags are conveyed through the central C1 sortation loops.
These loops are congested and may cause delivery times to increase during peak operations. The
proposed modifications will divert most of the transfer bags to the appropriate sortation systems
before they enter the C1 loops, creating baggage sortation efficiencies.
Project Objectives 
1.  Improve the long-term reliability of the baggage conveyance system 
2.  Increase the overall speed of the conveyors 
3.  Reduce baggage volume pressure on C1 sortation loop 
4.  Extend the service life of the systems

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 10, 2013 
Page 4 of 7 

Scope of Work 
The C92 systems between the C1 sortation loops and the C92/C88 connection, the C88 tunnel
systems, and the C88 North Satellite systems will be refurbished and/or overhauled. A mini-sort
system will be installed to presort transfer bags at the C92 transfer input to sort bags directly to
the C92 and C88 systems, instead of sending them to the C1 sortation loops, which will reduce
C1 sortation-loop bag volume pressure. 
The scope includes the following elements: 
1.  Refurbish North Satellite tunnel and pier conveyor:  replacement or refurbishment of
motors, gears, conveyor belts, and support equipment. 
2.  Evaluate and replace pushers as necessary: total replacement of internal pusher hardware
and components in the C88 system. 
3.  Add mini-sort conveyor system at C92-TX1 transfer input to presort transfer bags.
4.  Upgrade / replace programmable logic controllers (PLC's) at C92. 
5.  Refurbish C1 to the C88 cross-over: replacement or refurbishment of conveyor sections,
motors, gears, belts, and support equipment. 
6.  Upgrade of C88 computer systems and programmable logic controllers (PLC's). Relocate
the existing three control rooms and consolidate to a single baggage screening control
office. 
7.  Replacement of automatic tag readers (ATRs) at C88 North Satellite system. 
8.  Add a redundant recirculation conveyor for the C88 system at the North Satellite
Bagwell. Modify the C88 manual encode station to match existing airport standards. 
9.  Add in C88 sortation. Selectively replace other field control devices and wiring for both
the C92 and C88 systems. 
10. Replace motor control panels (MCPs) for C88 sortation system 
11. Evaluate and refurbish the C92 sortation system pushers, sortation conveyers, and
recirculation conveyers as necessary. 
Schedule 
Design Completion                       January 2014 
Advertise for bids                          January 2014 
Construction begins                        May 2014 
Construction completion                     June 2015 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                     $22,000,000          $0   $22,000,000 
Budget reduction                      -$500,000     $500,000          $0 
Revised budget                     $21,500,000     $500,000   $22,000,000 
Previous Authorizations                $15,747,000          $0   $15,747,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 10, 2013 
Page 5 of 7 
Current request for authorization            $5,753,000      $500,000    $6,253,000 
Total Authorizations, including this request    $21,500,000      $500,000    $22,000,000 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost             $21,500,000     $500,000   $22,000,000 

Project Cost Breakdown                     This Request       Total Project 
Construction                               $5,204,000        $14,625,000 
Construction Management                     $557,000        $1,974,000 
Design                                    $25,000         $2,194,000 
Project Management                         $164,000        $1,755,000 
Permitting                                   $86,000          $293,000 
State & Local Taxes (estimated)                   $217,000         $1,159,000 
Total                                     $6,253,000         $22,000,000 
Budget Status and Source of Funds 
This project was included in the 2014-2018 capital budget and plan of finance within CIP project
#C800555. Funding sources include the Airport Development Fund, existing bond proceeds, and
future revenue bonds. As indicated in the plan of finance, the Port anticipates issuing revenue
bonds in 2014 to fund a number of projects. 
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        $22,000,000 
Business Unit (BU)          Terminal  baggage system 
Effect on business performance  NOI after depreciation will increase 
IRR/NPV             N/A 
CPE Impact             Will increase CPE by $.10 in 2015 
Lifecycle Cost and Savings 
The renovation of existing baggage systems in this project will decrease the risk of expensive
equipment replacements due to operationally challenging unforeseen failures of aging
equipment. The renovations will increase system size (conveyor length, etc.) and increase
availability (operational up time as a result of newer components with less risk of failure), but
the renovations will not appreciably decrease the number of preventive maintenance activities
performed on the systems.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 10, 2013 
Page 6 of 7 
STRATEGIES AND OBJECTIVES 
The anticipated growth in domestic and international enplanements will require additional
capacity in baggage processing for all airlines. This project supports the Port's Century Agenda
objective of meeting the region's air transportation needs at Sea-TacAirport for the next 25
years. This project also supports the Aviation Division's strategy of anticipating and meeting the
needs of our tenants, passengers, and the region's economy. 
TRIPLE BOTTOM LINE 
Economic Development 
This project will increase the long-term ability of the Airport to serve AAG's future growth.
This project cost effectively meets AAG's needs by upgrading existing systems rather than
building entirely new systems.
Environmental Responsibility 
This project demonstrates environmental sustainability by improving existing Port assets to
extend their life, installing variable frequency drives and higher efficiency components when
replacing equipment, and better utilizing existing resources.
Community Benefits 
Long-term vitality of the Airport benefits the regional economy, the local environment and
nearby communities.  The Office of Social Responsibility (OSR) will provide support in
determining small business participation, as described in Resolution No. 3618. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1) Fully renovate or replace significant portions of the existing C88 and C92 
systems to provide a newer system with adequate capacity for processing 100% of the AAG's
future forecasted check-baggage volumes. Future baggage recapitalization projects are expected
to replace C88 and possibly portions of C92 prior to their expected life and full depreciation
making this alternative very expensive. This is not the recommended alternative. 
Alternative 2) Modify the existing C88 and C92 systems to replace all sort-piers with eight
recirculating makeup carousels to handle AAG's increase flight schedule and baggage loads.
The infrastructure costs and the impacts to Alaska's operations due to the downtime required to
implement this alternative are not desirable. This is not the recommended alternative. 
Alternative 3) Renovate and upgrade existing systems to relocate much, but not all, of AAG's
make-up to the North Satellite existing C88 system, while maintaining a split operation with
some baggage make-up remaining on the Concourse D C92 system. This option balances the
highest operational efficiency while minimizing impacts to system failures for the investment.
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
Airport Overall Baggage System Map

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 10, 2013 
Page 7 of 7 

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
September 24, 2013  Commission Quarterly Update for NorthSTAR Program. 
September 24, 2013  The Commission authorized staff to: (1) advertise, award, and
execute a major public works contract for the construction of the North Satellite
Refurbish Baggage System Project; and (2) authorize the use of Port crews. 
July12, 2013  The Commission was notified of 1 added scope item and 2 scope items
moved into the scope that were previously identified as suggested scope in the
November 6, 2012 Commission Memo. 
June 25, 2013  Commission Quarterly Update for NorthSTAR Program. 
March 26, 2013  Commission Quarterly Update for NorthSTAR Program. 
November 6, 2012  The Commission authorized staff to prepare design documents and
use Port crews to support site investigation needed to develop the contract documents, in
the amount of $3,760,000. 
April 10, 2012 - The Commission authorized the execution of consultant contracts for
design and construction support services; program management services; and the
completion of site surveys for regulated materials management, in the amount of
$1,200,000.