PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      6c 
ACTION ITEM            Date of Meeting   August 14, 2012 

DATE:    August 6, 2012 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Michael Ehl, Director, Airport Operations 
Wayne Grotheer, Director, Aviation Project Management Group 
James Jennings, Manager, Aviation Properties, Aviation Business Development 
SUBJECT:  Conversion of Zone 3 Ticket Lobby to Flow-Through Concept (CIP #C800492) 
Amount of This Request:  $12,779,000    Source of Funds: Airport Development Fund 
and existing bond proceeds 
Est. State and Local Taxes:   $762,471    Est. Jobs Created: 222 
Est. Total Project Cost:    $13,125,000 
ACTION REQUESTED: 
Request Port Commission authorization for the Chief Executive Officer to: (1) authorize
$10,145,200 of tenant reimbursement budget associated with the design and construction of a
new flow-through ticketing area for Delta Air Lines and Virgin America Airlines at Seattle-
Tacoma International Airport; (2) execute a tenant reimbursement agreement with Delta for this
purpose under the Airport's AV-2 Policy; (3) authorize $2,663,800 of non-tenant reimbursement
budget for regulated materials abatement; and (4) authorize the use of Port crews to construct a
new Virgin America airline ticket office and remodel spaces for two other offices that must be
relocated to accommodate this project. This request seeks a single Commission authorization to
proceed with design, abatement, and construction. The total estimated cost of this project is
$13,125,000. The Port's portion of the total project is $10,145,200. 
SYNOPSIS: 
This project will remodel the existing Delta and Virgin America ticket counters (see Attachment
A) to a "flow-through" concept similar to the Alaska Airlines ticket lobby. Ticket counters
would be arranged to allow passengers to "flow through" the lobby to drop baggage and walk
directly to the security checkpoints as opposed to going around the existing counters. This
project was approved by a majority-in-interest vote of the airlines on July 20, 2012. 
New airline ticket offices would be constructed elsewhere for Delta and Virgin America to allow
for this new arrangement. Two other tenants would be relocated as well. All of these offices must
be built out and occupied before the ticket counter remodel can begin. Construction would be
phased to allow current airline operations to continue.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 6, 2012 
Page 2 of 7 
Delta would complete this construction before summer 2013 under a tenant reimbursement
agreement. The existing US Airways ticket counter and ticket office will not be altered by this
project, although converting it to the flow-through concept has been accounted for in the overall
design. This project was included in the 2012-2016 capital budget as a business plan prospective
project. 
This project needs to be completed before the height of next summer's high traffic season. The
consequences of delay will result in a high risk for traffic gridlock in the ticket lobby. For this
reason, staff requests a single authorization for design and construction. 
BACKGROUND: 
Delta and Northwest merged in 2008 and combined ticketing operations to their current location
in the early 2010. That summer the Airport experienced severe crowding in the Delta ticket
lobby. Sea-Tac Airport has one of the narrowest ticket lobbies among all major U.S. airports,
made worse by protruding escalators from the garage skybridges. Crowds waiting for ticketing at
one airline's lobby can easily interfere with passengers trying to walk to other airlines. 
To address this congestion for the short term, Delta undertook some minor alterations of the
ticket lobby but recognizes these fixes are insufficient for the long term. Since 2010 Delta has
increasingly positioned Seattle-Tacoma International Airport as one of its major international
gateways, adding new nonstop service to Beijing, Osaka, Paris, and Amsterdam. In view of
Delta's plans to increase its service to the Seattle market, both Delta and the Port began
investigating ways to reduce overcrowding and make improvements that will last well into the
future. 
In 2009, Alaska Airlines had remodeled their ticket counters to "flow-through" ticketing islands, 
thereby reducing a growing congestion problem in their ticket lobby. After examining different
options, Delta and the Port agreed that converting the Delta ticket counter to a "flow-through"
layout similar to Alaska's was the preferred solution. Computer modeling of the proposed 
solution by the Airport's Planning Department has demonstrated a significant improvement to
customer service. 
Delta would like to complete the majority of the remodel of their ticket counter before next
summer's high traffic season. Delta has obtained internal approvals to begin this remodel and has
started design. Delta has requested to complete this work as a tenant project under a tenant
reimbursement agreement similar to the one used earlier for its SkyClub project at the South
Satellite. Since much of the construction will take place in Delta's leased spaces, and since it
must be completed by next summer, Port staff has agreed to their request to build much of the
project per the Port's AV-2 Tenant Reimbursement Guidelines. Staff will work with Delta to
ensure the Port's values are reflected in this construction project, such as setting appropriate
small business goals. Delta is also expected to spend an estimated $2,500,000 of Delta's own
capital funds in support of this project. 
PROJECT JUSTIFICATION: 
The work planned under this authorization will reduce congestion and gridlock in the Delta and
Virgin America ticket lobbies, support projected increases in passenger traffic, and provide 
improved overall circulation, operational flexibility, and efficiency at the Airport.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 6, 2012 
Page 3 of 7 
Project Objectives: 
Decrease passenger saturation in the Delta ticket lobby queues by approximately two-
thirds of today's peak numbers of passengers per hour (from 620 to 216 passengers/hour). 
Increase the passenger level of service rating (from IATA Level of Service F  System
Failure to A  Excellent). 
Passenger service is not significantly impacted by construction next spring. 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
To prepare for the primary scope of work, four 'enabling projects' will take place under the first
phase of this CIP to make way for the flow-through reconfiguration: 
Port crews in conjunction with small works contractors will build out new ticket office 
space for Virgin America in vacant space next to Checkpoint #3 in the center of the
terminal building. Funding of $115,000 for design for this element of work was
transferred from CIP #C800475 on May 7, 2012. 
The Port will relocate two other tenants that are currently occupying space behind the
Delta ticket counter to new offices elsewhere in the Main Terminal. These costs will be
shared between the Port and Delta. 
Delta will build out new ticket office space behind the Delta ticket counter in vacant
space and surplus Port space. 
Following the ticket office relocations, subsequent phases of work include the following: 
The Port will perform phased regulated materials abatement of the current Delta and
Virgin America ticket offices and other affected offices. 
Delta will perform phased demolition and build out of the new flow-through ticketing
islands and complete baggage conveyor system modifications, flooring, ceiling, lighting,
ticket counters, signage, mechanical and electrical modifications, temporary facilities, 
and miscellaneous improvements. 
The costs for the remodel work will be shared between the Port and Delta. The Port will provide
oversight of the work performed by Delta's contractor. 
The regulated materials abatement, demolition, and subsequent construction work is being
phased to minimize impacts to operations in the Main Terminal Ticket Lobby area during regular
and peak travel periods.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 6, 2012 
Page 4 of 7 
SCOPE OF AGREEMENT: 
Proposed Effective Date:             August 13, 2012 
Use:                           Authorization to construct approximately 3,000
square feet of ticket office space, 1,800 square feet
of ticketing area and associated items for
reimbursement. 
POS Capital Reimbursement:      $ 9,486,259 
POS Tenant Project Support Cost:    $ 658,941 
Total Reimbursement Budget:      $ 10,145,200 
Schedule: 
Activity                            Dates 
Airline Majority In Interest Approval                               July 20, 2012 
Commission Authorization                                August 14, 2012 
Construction of Four Enabling Projects               September 2012  November 2012 
Phased Regulated Materials Abatement                 November 2012  April 2013 
Open Virgin America ticketing half-island                            March 2013 
Open first Delta ticketing island                                      June 2013 
Open second Delta ticketing island                                August 2013 
Project Complete                                          October 2013 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary:               Capital       Expense    Total Project 
Original Budget                        $32,000,000           $0     $32,000,000 
Budget (Decrease)/Increase                $(20,493,000)      $1,347,000    $(19,146,000) 
Revised Budget                        $11,507,000     $1,347,000     $12,854,000 
Previous Authorizations (including May 7,         $346,000           $0       $346,000 
2012 CIP transfer and RMM preliminary
design funding) 
Current request for authorization               $11,432,000      $1,347,000     $12,779,000 
Total Authorizations, including this request       $11,778,000      $1,347,000     $13,125,000 
Remaining budget to be authorized                  $0           $0           $0 
Total Estimated Project Cost                $11,778,000      $1,347,000     $13,125,000 
Project Cost Breakdown:                 This Request    Total Project 
Tenant reimbursement less taxes (Delta)          $8,893,788      $8,893,788 
Estimated tenant reimbursement taxes (Delta)        $592,471       $592,471 
Tenant Project Support (Port)                   $658,941       $658,941 
Construction (Port)                        $1,977,000      $1,977,000 
Construction Management (Port)               $273,900       $273,900 
Design (Port)                             $157,500       $157,500 
Project Management (Port)                    $48,900       $394,900

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 6, 2012 
Page 5 of 7 
Permitting (Port)                             $6,500         $6,500 
Estimated State & Local Taxes (Port)             $170,000       $170,000 
Total                                 $12,779,000     $13,125,000 
Budget Status and Source of Funds: 
The Conversion of Zone 3 Ticket Lobby to Flow-Through Concept project was included in the
2012-2016 capital budget as a business plan prospective project (CIP #C800492) with a budget
of $32,000,000. The budget reduction of $20.4 million has been transferred to Aeronautical New
Projects (C102165). The funding source is from the Airport Development Fund and existing
bond proceeds. 
The current budget represents a decrease over the $32 million conceptual budget approved in the
original plan of finance. The original estimate amount was established using historical cost per
square foot data derived from the Alaska ticket counter project. The Delta project differs in that
it has a smaller footprint, will build out significantly less office space and has a much less 
complicated baggage system than the Alaska project, thus it will cost less.
Financial Analysis and Summary: 
CIP Category             Ticketing Strategy 
Project Type              Capacity 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        $11,788,000 capital, $1,347,000 expense 
Business Unit (BU)          Terminal 
Effect on business performance  NOI after depreciation 
IRR/NPV             N/A 
CPE Impact             $0.07 CPE in 2015, this project was included in the
capital budget and plan of finance. 
Lifecycle Cost and Savings: 
Airport maintenance of new electrical and mechanical systems installed under this scope of work 
is not expected to change from present levels. New lighting and mechanical components will be
more energy efficient and will initially result in reduced general maintenance requirements. 
STRATEGIC OBJECTIVES: 
This project promotes the Port's Century Agenda preliminary goal to make Sea-Tac Airport the
West Coast "Gateway of Choice" for international travel by improving traffic flow through the 
ticket lobby of our largest international carrier, thereby supporting future international routes and
destinations. 
By providing improved traffic flow in the Delta and Virgin America ticket lobbies, this project
supports the Port's business strategies to: 
Ensure Airport vitality by providing airlines with reliable and efficient services. 
Meet the region's air transportation needs at the Airport for the next 25 years.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 6, 2012 
Page 6 of 7 
ENVIRONMENTAL SUSTAINABILITY: 
This project allows for growth in passenger numbers without growing the building. This will 
reduce impacts to the environment surrounding the Airport. Improving the electrical, air
distribution, and lighting systems in this area will enable the Port to achieve increased energy
efficiency. 
In addition, removing asbestos containing material from the Airport helps the Port provide a
healthy and safe environment for employees, tenants, consultants, contractors, and the general
public.
BUSINESS PLAN OBJECTIVES: 
The renovation of this portion of the ticket lobby to a flow-through design supports the Airport's
Strategies and Objectives, namely: 
Anticipating and meeting the needs of our tenants, passengers, and the region's economy by
providing the airlines with improved facility efficiency, passenger processing, and flexibility.
The proposed flow-through design for this portion of the ticket lobby provides for more
efficient use of the Airport's existing resources. 
Become one of the top ten customer service airports in the world by 2015 by creatively
reconfiguring and managing our existing assets to minimize inconvenience and delays to the
traveling public. 
TRIPLE BOTTOM LINE SUMMARY: 
Using a design proven to decrease congestion and increase passenger through-put will enable the
Port to provide a facility today to meet the traffic projections of the future without having to
make major expansions. 
This project will improve the experience of the traveling public by improving the efficiency of
the ticketing and check-in process. 
This project also demonstrates the Port's commitment to environmental stewardship and
sustainability by replacing outdated and uneconomical infrastructure and systems with
modernized and more energy efficient equipment. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
1.  Remodel the existing ticket counters for Delta and Virgin America to a "flow-through"
configuration as a tenant project completed by Delta. This will provide a long-term
solution for increased passenger processing and will meet Delta's goal of having it ready
in time for next summer's traffic. This is the recommended alternative. 
2.  Do nothing or postpone the conversion to a flow-through concept. This will promote
further overcrowding and congestion not only in this area but in the adjoining areas as
well. Previous modifications to the Delta ticket lobby have only partially alleviated the
congestion in the lobby area that is projected to continue to increase as airlines add new
routes and passenger volumes increase in the Main Terminal ticket lobby area. This
alternative is not recommended.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 6, 2012 
Page 7 of 7 
3.  Partial or full counter pushback: This provides larger queuing space in the lobby but does
not increase passenger processing rates. This increased cost will remedy the queue
congestion in the short-term, but lacks a long-term solution. This alternative is not
recommended. 
4.  Remodel the existing ticket counters as per Alternative 1 using Port resources. This
alternative would take longer to complete and not satisfy Delta's goals of having a
solution ready in time for next summer's traffic. This alternative is not recommended. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Attachment A  Computer Slide Presentation 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
December 6, 2011  Commission authorized Airline Realignment Miscellaneous
Building Improvements project (CIP #C800475) including the Virgin America ticket
office design.