7a supp

Item No.       7a_attach 
Date of Meeting    August 9, 2016 
Sea-Tac International Airport 
NorthSTAR Program 
Program Commission Second Quarter 2016 Update 
and North Satellite Project Update

NorthSTAR Program 
The North Sea-Tac Airport Renovation (NorthSTAR) Program is being planned
and delivered in collaboration with Alaska Airlines to better serve passengers and
improve operational efficiency. This program consists of renovating and
expanding the north satellite, improving the north main terminal, refurbishing
the north satellite baggage system, and new exterior walkways, stairs and
elevators at Concourse C. 
Purpose: 
Improve the travel experience from airport drop-off to flight departure and
working environment for employees 
Outcome: 
Facility modernization; seismic reinforcement; enhanced traveler amenities;
new contact gates; long-term energy savings; and operational efficiencies 

Mission Statement 
2

Approved Program: $623M        NorthSTAR Program Overall Budget 
$600
Original Budget - As established at inception
Revised Budget - As approved by Commission
$531.1                     $500                       $531.1                                     Authorized - As authorized by Commission
Expended - Thru reporting period end
Forecast - Anticipated Cost at Completion
Millions  $400
$300

$200

$100
$15.4                         $16.0             $29.2             $19.3             $8.0             $4.1 
$-
Program       North      Concourse C      Main     Baggage System   NorthSTAR    Management
Management    Satellite      FINAL      Terminal     Renovation     Expense      Reserve
Renovation                 On HOLD       FINAL       Projects
Q2 2016  North Satellite Revised Budget Approved 
3

NorthSTAR Program Commission Action 
Apr 2012                                 Jul 2012             Nov 2012        Nov 2012 
Authorized NSTAR                            Authorized          Authorized      Authorized 
consultant contracts                  Jun 2012      Design of North           Design         Design       Dec 2012 
design/const. supt.                    Program       Satellite & STS         NSAT Refurbish     Concourse C      Program 
2012                                  Briefing    Lobbies Renov     Baggage System    Vertical    Briefing 
Circulation 

Apr 2013         May 2013                           Sept 2013                  Oct 2013 
Authorized PLA      Authorized                          Authorized                Authorized 
March 2013   covering NSTAR   execution of NSTAR   Jun 2013              Construction     Sept 2013     Construction
2013             Program    major      CM and    Program       NSAT Refurbish  Program   Concourse C 
Briefing   construction projects  Commissioning Svcs     Briefing                Baggage System     Briefing         Vertical 
Circulation 

Aug 2014 
Jan 2014 
Jul 2014     Authorized NSAT
Initial NSAT                   Apr 2014                                  NSAT      Expansion, Addl           Oct 2014 
2014     Expansion &         Program                Expansion  Design & GC/CM     Program 
Program                Briefing                           Briefing       approach           Briefing 
briefing 

Jan 2015            Mar 2015         Mar 2015                                                    Q4 2015 
Authorized NSAT         Authorize        Authorize                                                 Authorize 
Jan 2014 
2015       Pre-Const Svcs &   Early const for PLB;    Design         Q2              Q3    Construction     Q4 
Program   execution of GC/CM      PSE agreement     NSAT Baggage           Program                    Program     NSAT GC/CM     Program 
Briefing        contract            CM Offices; STS       Expansion                Briefing                         Briefing       Prelim. Work      Briefing 
Display; RMM;                                                               (Mini-MACC) 

Q32016 
Q22016                   Authorize              Q42016 
2016                          Authorize                            Authorize 
Q1                              Q2         Additional        Q3                    Q4 
Additional                             NSAT                     Construction 
Program                            Program                     Program                  Program 
NSAT/NSTAR 
Briefing                                 Briefing        Construction                     SMGCS 
Briefing                      Briefing 
Soft Cost                             (3rd floor)                  (Airfield lighting) 
Q22017 
Q1           Authorize                Q2                          Q3                       Q4 
2017 
Program        Construction            Program                    Program                 Program 
Briefing          NSAT GC/CM               Briefing                         Briefing                      Briefing 
(MACC) 
Commission Schedule  Past & Future 
4

NorthSTAR Program Management 
CIP: C800554  NorthSTAR Program Management 
Purpose: 
Overall management of the program; programmatic oversight, coordination and controls for
consistency; support between stakeholders and projects; and efficient and successful
execution of the entire program's objectives 
Accomplishments:
Received additional Program Management authorization 5/24/16 
Metrics: 
Project Metrics         Budget/    Actual      Financial Metrics        Budget/      Actual    Remaining 
Planned                             Planned 
Overall Schedule           43%     43%     Estimated Total Costs *       $19.5M    $3.8M      $15.7M 
Progress 
SCS Participation           27.0%   23.1%*     Estimated Contingency 
(Program Management)                  (including Mgmt          $0.94M             $6.8M 
Reserve) 
* denotes % of Prime Contractor Budget to date.             Q2 Cashflow                  $140k     $193k 

* Contingency included 
Q2 2016 Status  Program Management 
5

NSAT Renovation & NSTS Lobbies 
CIP: C800556 - NSAT Renovation & NSTS Lobbies 
Purpose: 
Renovate and expand the satellite, including infrastructure, seismic reinforcement, gate
relocations, north loop Satellite Transit System station (NSTS) lobbies, and new penthouse
shell 
Provide improved travel experience for customers, improved working environment for
employees and long-term energy savings and operational efficiencies 
Accomplishments: 
Received Commission Approval for $121.2M increased scope and additional authorization
for $6M design and overall project support services 
CONSTRUCTION BEGAN on Preliminary Work Package 1 
Received and began review of Preliminary Work Package 2  90% submittal 
Conducted critical Decision Analysis for NSAT 3rd floor plan to accommodate the Signature
Restaurant, adding 3,000 SF to the Alaska Boardroom and future growth that meets
original program requirements. Results in a $7M budget increase no schedule delay. 
Interior design concepts and materials approved by AAG and Port Senior Management 
Completed PFC strategy analysis for NSAT with AV/Finance 
North Satellite  Accomplishments 
6

NSAT Renovation & NSTS Lobbies 
NSAT 3rd Floor Plan Redesign Cost Impact 
Initial very preliminary cost impact - $16M based upon 22 week delay
assuming day for day impact for redesign, bid packages, bidding and
construction start (@$500k/week) plus $5M additional capital
construction costs 
Refined schedule analysis to eliminate any schedule delay by
resequencing bid packages. Net result is an estimated $7M budget
construction cost increase for a revised forecasted project budget of
$538.1M capital costs. 
Revenue Benefit= $1,310,000/yr. additional 
Added 4,485 sf AAG Boardroom = $785,000/year 
Added 3,000 sf future leasable space (prev. Mech. Rm) = $525,000/year 
Straight-line Return on Investment of this option is 5.4 years 

North Satellite  NSAT 3rd Floor Plan Redesign Impacts 
7

NSAT Renovation & NSTS Lobbies 

Option 6  Third Level Plan 
Current Design 



New Mechanical Penthouse 
Recapture space for Port
on Third Floor under New
Mechanical Penthouse 
Current Boardroom 
Boardroom Expansion 

Option 6  Third Level Plan 
Expand Boardroom East Over Roof 
North Satellite  NSAT 3rd Floor Plan Redesign Impacts 
8

NSAT Renovation & NSTS Lobbies 
Progress: 
Resolving last 60% design comments concerning holdroom Level of Service (LOS) during
construction by refining transition from Phase I to Phase II construction 
Finalizing approval of 3rd floor redesign and AAG's Boardroom layout per Decision Analysis 
Finalizing early procurement of copper wire based on commodity price to achieve cost savings 
Entire team refining critical path schedule, contract requirements, bid package scopes of work
and construction phasing for Preliminary Work Package 2 and Base Building packages 
Revised cost estimate reconciliation process using lessons learned from 60% design effort 




North Satellite  Progress & Schedule 
9

NSAT Renovation & NSTS Lobbies 
Metrics: 
Financial Metrics            Budget/    Actual     Remaining     Project Metrics                    Budget/    Actual 
Planned                                                 Planned 
Estimated Total Costs          $531.1M     $31.4M      $499.7M    Overall Schedule Progress                 9%      5% 
(including Contingency) 
Delayed Outbound Bags                  0       0 
Estimated Contingency         $38.5M               $28.3M 
Delayed Outbound Flights                  0       0 
Q1 Cashflow                $3.7M     $6.0M             Safety Hazard Reports (Level 2+)             0       0 
Customer Complaints Rec'd            < 5 / mo       0 
Participation Metrics                   Planned       Actual    Construction Change Orders Processed          0       0 
SCS Participation (Design)                     3.3%         2.1% 
SBE Participation (Construction)             38.19% 1         0% * 
SCS Participation (Construction)              6.79% 1         0% * 
WMBE Participation (Const.)                4.65% 1        0% * 
Apprenticeship Utilization                    15.0%        0.0% * 
Minority Utilization                        15.0%        0.0% * 
Women Utilization                       10.0%       0.0% * 
Preferred Entry Apprentices                 1 in 5          0 * 

North Satellite - Q2 2016 Metrics 
10

NSAT Renovation & NSTS Lobbies 

Fuel pit install at N9 



Demolition of ramp 


North Satellite  Construction Photos 
11

NSAT Renovation & NSTS Lobbies 
Issues: 
AAG submitted letter identifying issues requiring resolution for concurrence - 17 gates
during NSAT construction; Approval of revised Boardroom; LOS during construction 
Final definition and agreement continues for AAG "betterments" (cost sharing items),
including budget quantification 
Risks: 
Budget growth due bid results during the aggressive construction market, limited
resource availability and lack of interest 
Cost and schedule impacts of needed terminal/airside modifications to transition from
Phase I to Phase II construction to minimize impacts to level of service and operations 
Accommodating further AAG requests for changes or detailed analysis that impacts
design and construction schedule 
Impacts accommodating the number of operating gates (12 vs 14) in Phase 2 
Resolution of open issues that impact final design and construction 
Dropping copper commodity pricing after early purchase reduces potential cost savings 
North Satellite  Issues & Risks 
12

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