PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6d 
ACTION ITEM 
Date of Meeting      May 24, 2016 
DATE:    May 16, 2016 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Ralph Graves, Managing Director Capital Development Division 
George England, Program Leader, Aviation Project Management Group 
SUBJECT:  North Satellite Renovation & North Satellite Transit Station Lobbies Project (NSAT)
(CIP #C800556); NorthSTAR Program (CIP# C800544)
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to (1) increase the North Satellite
Renovation & North Satellite Transit Station Lobbies (NSAT) project scope and budget (capital and
expense) by $121,219,098 for a revised total budget of $542,902,042; (2) increase authorization by 
$11,000,000, $5,000,000 for continued NorthSTAR Program/Project Management services (CIP#
C800544) for a new total of $9,350,000 and $6,000,000 for NSAT design and overall project support
(CIP# C800556) for a new total of $163,718,000; (3) amend service agreements with Jacobs Project
Management Company and AECOM; and (4) authorize the use of port crews and small works
contractors to perform work for the project. 
SYNOPSIS 
This memo requests authorization for additional scope and budget, both capital and expense to complete
the design of the NSAT project. Staff has completed the 60% design and reconciliation of the estimated
cost. The NSAT project cost estimate has increased by $121.2 million from $421.7 million established
in March 2015 to $542.9 million, a growth of 28.7%. Of this increase, $35.4 million is for additional
scope added at 30% design, $40.0 million is for additional scope added at 60% design, and $45.8 million
is for cost estimate changes due to market conditions and mitigation of operational impacts during
construction. The formal majority-in-interest (MII) project approval for $531 million occurred on March
31, 2016. The Commission was previously informed of additional scope for twelve (12) items added to
the project at the completion of 30% design. As previously conveyed to the Commission through
quarterly updates, staff had the objective of absorbing these changes into the existing budget. This
objective of adding scope without increasing budget has been determined unachievable and further
scope has been added at 60% design. Though value engineering efforts continue, there are insufficient
reductions to achieve the original project budget.
Scope Additions at 30% Design (October 2014) 
Relocation of STS Switchgear/Smoke Evac ductwork          $5.3 M 
Temporary facilities for Gate Operations (PLB Relo)          $11.9 M 
Additional eGSE parking/charging stations                 $2.5 M 
Connect AAG MDF to Emergency Power               $0.1 M 
Taxiway Lighting / Panel Replacement                   $3.2 M 
Chilled Water Service Backbone Increase                 $2.1 M 
Site/Civil Regrade & Panel Replacement                  $8.0 M 
Potable Water Cabinets                           $0.3 M 
Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 16, 2016 
Page 2 of 10 
LEED Certification                             $0.5 M 
Rainwater Collection                             $0.3 M 
HVAC Heat Recovery Pump System                  $1.0 M 
Natural Gas                                $0.2 M 
Subtotal 30% Scope Additions  $35.4 M 
Scope Additions at 60% Design (September 2015) 
Reroute Roof Drainage to Storm Sewer                  $1.8 M 
SafeDock / Ramp, Gate, Baggage & Flight Information Displays    $6.5 M 
Port Purchase of Passenger Loading Bridges               $21.0 M 
Port Purchase of Holdroom Seating & Casework             $4.7 M 
Additional Regulated Material Abatement                 $6.0 M 
Subtotal 60% Scope Additions  $40.0 M 
Cost Estimate Changes 
Estimate Adjustments due to design development                  $19.4 M 
Added Bid/Market Risks                                $14.6 M 
Phase II Construction Sequencing / Gate Availability Risks            $11.8 M 
Subtotal Cost Estimate Changes  $45.8 M 
The project team has been finalizing scope elements and is recommending the budget be increased as we
have completed our evaluation of bid results for the preliminary work. We have validated actual market
conditions and subcontractor pricing. Labor and subcontractor shortages have escalated and continue to
escalate as our regional economy is growing. 
Staff is working closely with Alaska Air Group (AAG) to mitigate construction impacts and maintain
the highest level of customer experience during the project. More detail is needed to develop a final
preferred plan, and staff anticipates the possible need to return in 2017 for additional budget and scope
increase based on the final construction sequencing plan. Staff currently forecasts the estimated cost of
the project to range between $530,000,000 and $550,000,000 as of the date of this memo and will
update the Commission in quarterly briefings as we continue to track market conditions and the design
progresses further toward completion. 
The Port may directly procure equipment such as jet bridges, holdroom seating, casework or other
elements identified by staff or as recommended by the Port's Procurement Excellence initiative, 
provided the equipment can be delivered within the project's required schedule. 
Port staff is requesting an increase in project authorization of $11 million total for continued design,
project support and program/project management services. Port staff is requesting authority to amend
the Project Management contract with Jacobs Project Management Company and the design contract for
AECOM (formerly URS) to authorize individual elements of the scope identified above, all within the
increased budget. The AECOM design contract and Jacobs Project Management contract will require an
amendment that exceeds 50% value of the original contract. This action will also cover the expenses of
the delays experienced in completing the design. This would bring the total authorization for the North

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 16, 2016 
Page 3 of 10 
Satellite Renovation project (CIP# C800556) to $163,718,800 and the NorthSTAR Program (CIP#
C800544) to $9,350,000. 
On March 24, 2015, the Commission previously authorized the use of Port Crews for preliminary
construction work. This request is for continuation of the use of Port crew labor and small works
contractors to perform work and construction management services for the full duration of the project. 
This project is being coordinated with the Sustainable Airport Master Plan (SAMP) and will not be
adversely affected by future development recommendations of SAMP. 
BACKGROUND 
In August 2014, the Commission approved a NSAT project budget of $405,532,944 and authorized 
increasing the project scope to expand the building by five additional aircraft gates to a total of twenty
gates, and the use of a General Contractor/Construction Manager contractor for NSAT construction. In
March 2015, the Commission approved the current budget of $421,682,944 with the addition of
$14,400,000 for expansion of the baggage handling system within the expanded portion of the building
and transfer of $1,750,000 for the previously authorized Satellite Transit System tunnel leak repair
project (CIP C800609). Commission also authorized use of $4,900,000 of the NSAT budget in March
2015 for preparatory work for construction offices, relocating loading bridges, a dynamic display system
for the north loop of the satellite train system, and reimbursement to Puget Sound Energy for a natural
gas connection to the satellite.
At the completion of the 30% design phase in October 2014, twelve (12) additional scope items were
added to the project for further refinement and evaluation during 60% design and the revised 60%
project budget was estimated at $501.2 million. The possibility existed that added costs might be
covered within the design allowance or other project contingencies of the estimate during 60%
development. The potential impact of these scope additions on the budget has been continually
identified as a risk in the Q4 2014 and Q1 2015 NorthSTAR Quarterly Updates to the Commission.
With the completion of the 60% design and the incorporation of scope items requested by both Alaska
Air Group and Port of Seattle Aviation Operations, the current project cost estimate would increase the
budget by $121.2 million or 28.7%. This revised estimate has been reconciled by the Port with the
designer's and the General Contractor/Construction Manager's independent estimates. The result has
been a more accurate, but higher estimated cost to accomplish the project. 
In accordance with the Letter of Understanding between the Port and Alaska Airlines Group (AAG)
dated April 5, 2012, the Port will seek AAG's concurrence for various project elements, in particular, for
construction phasing and the project budget. The Port continues to collaborate with AAG to optimize
the construction phasing and the revised project budget and is working to obtain AAG's concurrence on
both aspects prior to this action. 
PROJECT JUSTIFICATION AND DETAILS 
In order to minimize delays to the overall project schedule staff is recommending the design and
construction packages continue to move forward.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 16, 2016 
Page 4 of 10 
This authorization forecasts additional scope requested by the port and AAG. This scope is in addition
to the $101.6 million previously authorized on December 8, 2015. The additional scope changes risk is
identified in more detail in the table above. 
Project Objectives 
Extend the length of NSAT by approximately two hundred forty feet to improve customer
service and accommodate additional aircraft and passengers. 
Seismically strengthen NSAT and expand the existing infrastructure. 
Balance and integrate NSAT functional areas and requirements (concessions, holdrooms,
amenities, airline operations and airline services) through a renovation and expansion of the
NSAT's terminal area to achieve acceptable levels of service. 
Align near term and forecasted airport-wide gate use and capacity by providing 20 contact gates
at NSAT. 
Optimize gate door contact points, loading bridges and aircraft parking positions, including fuel
hydrants and other support utilities. 
Meet or exceed current sustainability goals of the Century Agenda. This project is pursuing
LEED certification. 
Create a "frictionless" and stress-free passenger experience within NSAT. 
Create an exciting and attractive facility integrating hold-rooms, diverse amenities and numerous
concessions. 
Maintain and promote a Northwest sense of place through the design of architecture and
connected technologies. 
Scope of Work 
This request includes the following elements associated with the requested authorizations: 
Additional project management and design services for Jacobs and AECOM (formerly URS) to
continue project management support for the duration of the project and complete the design. 
Ongoing key elements associated with the overall NSAT renovation and expansion are: 
Renovation of concourse level finishes, structure, and amenities 
Expansion of the NSAT STS, baggage and concourse levels by up to nine structural bays 
Addition of five new NSAT aircraft gates with passenger loading bridges. (for a total of 20) 
Seismic reinforcement 
Addition of an Alaska Airlines premium traveler lounge (Alaska Board Room) 
NSAT Satellite Transit System lobby enhancements construction (including the NSAT,
Concourse C and Main Terminal north stations) 
Expansion, renewal and replacement of mechanical, electrical, plumbing, vertical transportation,
and communication systems 
Aircraft taxi lane changes around the NSAT

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 16, 2016 
Page 5 of 10 
Significant sustainability features and components such as rainwater capture for flushing of
toilets. 
Design development of the north end ramp level to integrate baggage operations with other ramp
and building requirements. 
Schedule 
The schedule of the design of the project has been delayed as reported in quarterly briefings and the
previous Commission Authorization on December 8, 2015. Additional scope growth, obtaining the
recent positive MII vote from the airlines reflecting new budget, phasing and sequencing development,
re-bidding the preliminary work package 1, and continuing to work to AAG concurrence all contribute
to the schedule as reflected below: 
Preliminary Work Package Design Completion              2nd Quarter 2016 
Preliminary Work Package Construction Start               2nd Quarter 2016 
Preliminary Work Package Construction Complete            4th Quarter 2017 
Base Building 90% Design Complete                    3rd Quarter 2016 
Base Building 100% Design Compete                   4th Quarter 2016 
Base Building Construction Start                        4th Quarter 2017 
Base Building Construction Complete                    2nd Quarter 2021 
FINANCIAL IMPLICATIONS 
NorthSTAR Program (C800544) 
Budget/Authorization Summary            Capital      Expense     Total Project 
Original Budget                      $13,000,000          $0    $13,000,000 
Previous budget increase                  $6,514,150           $0     $6,514,150 
Proposed budget increase                       $0          $0          $0 
Revised budget                      $19,514,150          $0    $19,514,150 
Previous Authorizations                  $4,350,000           $0     $4,350,000 
Current request for authorization             $5,000,000           $0     $5,000,000 
Total Authorizations, including this request      $9,350,000           $0     $9,350,000 
Remaining budget to be authorized         $10,164,150          $0    $10,164,150 
Total Estimated Project Cost              $19,514,150          $0    $19,514,150 
North Satellite Renovation (C800556) 
Budget/Authorization Summary            Capital      Expense     Total Project 
Original Budget                     $194,300,000    $5,000,000    $199,300,000 
Previous budget increase                $221,582,944     $800,000     $222,382,944 
Proposed budget increase               $115,219,098     $6,000,000   $121,219,098 
Revised budget                     $531,102,042    $11,800,000   $542,902,042 
Previous Authorizations                $157,718,800     $3,500,000   $161,218,800 
Current request for authorization             $6,000,000           $0     $6,000,000 
Total Authorizations, including this request    $163,718,800     $3,500,000   $167,218,800

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 16, 2016 
Page 6 of 10 
Remaining budget to be authorized         $367,383,242     $8,300,000   $375,683,242 
Total Estimated Project Cost             $531,102,042    $11,800,000   $542,902,042 
Note: The estimated cost of the project is currently forecasted at $530-550 million. The final estimated
project cost will be determined after the Port and Contractor negotiate the final Maximum Allowable
Construction Cost (MACC) based on actual bid results. 
NorthSTAR Program (C800544) 
Authorization     Authorization     Project Budget 
Project Cost Breakdown 
This Request        Total           Total 
Construction Phase                                                 $0 
RMM/ERL                                      $0 
Design Phase                      $5,000,000    $9,350,000     $19,514,150 
State & Local Taxes (estimated)                                          $0 
Total                              $5,000,000     $9,350,000     $19,514,150 

North Satellite Renovation (C800556) 
Authorization     Authorization     Project Budget 
Project Cost Breakdown 
This Request        Total           Total 
Construction Phase                             $102,875,000     $429,326,179 
RMM/ERL                         $3,500,000    $11,800,000 
Design Phase                      $6,000,000    $52,603,800      $63,821,863 
State & Local Taxes (estimated)                       $8,240,000      $37,954,000 
Total                              $6,000,000    $167,218,800     $542,902,042 
In accordance with RCW 53.19, the Commission is notified that this amendment exceeds 50% value of
the original contracts with URS (AECOM) and Jacobs and this memorandum will be made available for
public inspection. 
Budget Status and Source of Funds 
This project is included in the 2016  2020 capital budget and plan of finance with a budget of $415.8
million. The possible budget increase, if approved, would be transferred from the Aeronautical
Allowance CIP (C800404) resulting in no net change to the Aviation Division capital program. The
project will be funded with a combination of Airport Development Fund, revenue bonds and Passenger
Facility Charge revenues (PFCs).
The terms under which AAG will participate in the Port's NorthSTAR Program costs have been
established via an April 5, 2012, Letter of Understanding between the Port and AAG. The formal
majority-in-interest (MII) project approval for $531 million occurred on March 31, 2016 as outlined in
the Signatory Lease and Operating Agreement (SLOA). This requested authorization is within the
current MII approved amount.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 16, 2016 
Page 7 of 10 
Financial Analysis and Summary 
CIP Category             Renewal and Replacement 
Project Type              Terminal Infrastructure 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        $542M 
Business Unit (BU)          Terminal 
Effect on business performance  NOI after depreciation will increase 
IRR/NPV             N/A 
CPE Impact             $1.32 by 2021. The actual CPE impact for this project
could be lower depending on the amount of PFCs applied
to construction costs and on revenue bond debt service. 
Lifecycle Cost and Savings 
An adequate estimate of staff hours and materials expense to operate the expanded and renovated NSAT
building is still in development as the project elements are being refined and specifically defined
regarding product, materials, and equipment. However, staff will provide an accurate estimate as design
progresses. It is already understood that the additional expansion area will incur additional maintenance
expense.  A key objective of the project is installing sustainable materials and to maximize the
maintainability of the new equipment.   The complete renovation/replacement of the mechanical,
electrical, baggage and other major systems provides an opportunity to achieve life cycle cost
efficiencies and savings. 
STRATEGIES AND OBJECTIVES 
This project supports the Port's Century Agenda objective of meeting the region's air transportation
needs at Sea-Tac Airport 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. 
The NSAT expansion is also in alignment with Airport master plan development objectives that identify
the NSAT as the most logical location for near-term expansion of Airport capacity. 
TRIPLE BOTTOM LINE 
Economic Development 
This project will increase the long-term ability of the Airport to serve the airlines and AAG's future
growth. With the airport facing record growth, this project cost effectively adds new gates to benefit the
airport-wide gate shortfall. It also meets AAG's growth needs by expanding the satellite and renovating
the existing building with entirely new systems. 
Environmental Responsibility 
The North Satellite renovation project allows the Port unique opportunities to incorporate sustainable
features into the design and construction of the facility. The project scope has been developed to meet
the project objectives, the Port Century Agenda goals, and the Airport's Environmental Strategy. Port

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 16, 2016 
Page 8 of 10 
staff has engaged AAG in developing the environmental aspects and process. Each scope item has been
evaluated individually based upon the total cost of ownership for the expected life of the facility. The
specific scope features include: 
Energy conservation for building infrastructure. 
Water conservation for the facility including rainwater harvesting for use in the building. 
Construction and operations waste minimization. 
Incorporation of new technology. 
Exceed current building codes.
This project is pursuing Leadership in Energy and Environmental Design (LEED) Certification and will
continue to evaluate other environmental initiatives as the design progresses. 
Community Benefits 
Project managers are coordinating with the Economic Development Division's Small Business Team to
maximize small business participation opportunities including, but not limited to, Small Contractors and
Suppliers (SCS) and minority and woman business enterprise (M/WBE) participation in accordance with
Small Business Resolution No. 3618. The Port contract with HP required the establishment of a Small
Business utilization goal, which includes SCS and M/WBE participation. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternate 1 - Redesign NSAT project to existing budget. 
Cost Implications: This alternative would cause a redesign delay estimated at 12 months and $15 - $20
million.
PROS: 
Maintain existing budget as close as possible. 
CONS: 
Requires significant elimination or reduction of core project scope items.
Will not achieve all project objectives/quality/passenger experience goals, operational and
business goals, or LEED Certification.
Total scope reduction may still not result in budget savings needed to maintain budget. 
Alternative 2 - Defer project budget and Preliminary Work Package commencement until after MACC
negotiations are complete in 2017. 
Cost Implications: Additional costs for including project scope plus escalation and delay costs would
exceed Alternative 1 or Alternative 3. 
PROS: 
Provides time for AAG concurrence if not already obtained. 
CONS: 
Additional costs may be even higher due to market conditions and change orders required after
the MACC is complete.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 16, 2016 
Page 9 of 10 
Alternative 3 - Current Schedule: Proceed with current expansion/design project scope and phasing.
This is the recommended alternative. 
Cost Implications: Project current cost estimate exceeds approved $421 million budget and is forecasted
to range between $530,000,000 and $550,000,000. 
PROS: 
Maintains Port's programmatic objectives including addition of necessary gates, improved
NSAT customer services and operations, increased non-airline revenues, etc.
Achieves Port functional and design objectives.
Savings will be achieved by value engineering. 
CONS: 
Working on obtaining AAG concurrence but proceeding without AAG could risk damage to
airline/airport relationships. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
April 26, 2016  NorthSTAR Program status update 
February 9, 2016  NorthSTAR Program status update 
December 8, 2015 - Project authorization, and execute contract amendments and change orders
to Hensel Phelps General Contractor/Construction Management (GC/CM) in the amount of
$98.1 million and execute a contract for project specific construction audit services. 
November 24, 2015  NorthSTAR Program status update and NSAT budget briefing 
July 14, 2015  NorthSTAR Program status update 
April 28, 2015  NorthSTAR Program status update 
March 28, 2015  The Commission authorized three NSAT related items: 
o  Expand the baggage handling system increasing the project scope for $14,400,000 and
authorizing $1,954,000 to complete the design. 
o  Entering into a developer agreement with Puget Sound Energy and authorizing $200,000
in reimbursement for the design and construction of underground gas infrastructure. 
o  Authorized $5,300,000 to 
Prepare four locations to accommodate temporary passenger loading bridges, to
construct temporary construction offices. 
To complete construction of a Satellite Transit System (STS) North loop Dynamic
Display system. 
$600,000 in expense funds for regulated materials management for AAG's tenant
improvement project. 
Approval to use Port crew labor and small works contractors to complete early
project work. 
January 27, 2015  NorthSTAR Program Status Update

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 16, 2016 
Page 10 of 10 
January 6, 2015  The Commission authorized (1) $5,000,000 preconstruction services; (2)
execution of a General Contractor/Construction Manager contract for preconstruction services;
and (3) transfer of scope, $1,750,000 budget and authorization for STS station roof replacement
to the North Satellite Renovation and Expansion project. 
October 28, 2014  NorthSTAR Program Status Update 
August 5, 2014  Commission authorized an estimated $191,323,143 to expand the NSAT by 8
additional gates, an additional $15,717,800 for design completion, and use of the General
Contractor/Construction Manager alternative public works contracting procedure for NSAT
expansion construction procurement. 
July 22, 2014 - NSAT Expansion Briefing. 
April 16, 2014  Seattle-Tacoma International Airport Capital Program  Briefing. 
January 14, 2014  NorthSTAR Program status update and initial NSAT Expansion briefing. 
September 24, 2013  NorthSTAR Program status update. 
September 24, 2013  The Commission authorized staff to: (1) advertise, award, and execute a
major public works contract for the construction of the NSAT Refurbish Baggage System
Project; and (2) authorize the use of Port crews. 
June 25, 2013 NorthSTAR Program status update. 
May 28, 2013, Commission authorized the execution of separate service agreements for
Construction Management Services and Commissioning Services, of approximate values of $10
million and $1.5 million. 
April 9, 2013  The Commission authorized the Chief Executive Officer to enter into a project
labor agreement covering the NorthSTAR program's five major construction projects. 
March 26, 2013 NorthSTAR Program status update. 
December 11, 2012  The Commission was briefed on the Vertical Conveyance Modernization
Project Aero Phases 1 and 2 and the possibility of adding the specified elevators and escalators to
the NorthSTAR program. 
July 24, 2012 - Commission authorized $32,000,000 for the design of the NorthSTAR NSAT
Renovation and NSTS Lobbies project. 
June 26, 2012 - The Port Commission was briefed on the NorthSTAR program by Wayne
Grotheer, Director Aviation Project Management Group. 
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.