PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6e 
ACTION ITEM 
Date of Meeting    December 9, 2014 
DATE:    December 1, 2014 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Michael Ehl, Director, Airport Operations 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  South Satellite Interior Renovations project at Seattle-Tacoma International
Airport (CIP C#800549) 
Amount of This Request:         $950,000   Source of Funds:   Airport Development
Fund 
Est. Total Project Cost:          $5,167,000 
Est. State and Local Taxes:        $325,000 
Net Proceeds to the Port:              $0 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to advertise for and award a 
contract to construct Phase One of the South Satellite Interior Renovations project at Seattle-
Tacoma International Airport using a combination of a major contract and Port resources. This
request is for an amount not to exceed $950,000 of a total estimated project cost of $5,167,000. 
SYNOPSIS 
This project will make interior renovations to the mezzanine and departure levels of the South
Satellite. Phase One of this project includes: 
New carpet, 
New vending alcove, 
Removal of old unused signage, 
Consolidation of payphones, 
Replacement of water fountains with new dual water bottle filling stations and
fountains, and 
New paint. 
The project will return with a future request for authorization of Phase Two which includes new
podiums and backstands, new wall panels, and new door portals. 
This project was included in the 2014-2018 finance plan with a budget of $18,900,000. After
reviewing the initial scope, staff determined that this project could complete some scope items

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 1, 2014 
Page 2 of 5 
quickly to immediately improve customer experience while others were more appropriate to
include in a future comprehensive renovation of the South Satellite. Thus the scope and budget
for this project was reduced to a total project cost of $5,167,000. The project is included in the
2015  2019 capital budget and plan of finance with a budget of $3,358,000. Earlier this year,
ten of the eleven carriers that operate at the South Satellite sent letters to the Airport Managing
Director requesting modifications and upgrades to the terminal to enhance the overall customer
experience.  In November of 2014, the airlines approved this project through a majority-ininterest
vote. 
BACKGROUND 
The South Satellite, with the exception of the west end, was last updated in the 1990s, when new
carpet was installed. M any of the original 1970s finishes remain today. Passengers flying
through or departing from the South Satellite, the international gateway to and from the Puget
Sound region, should be provided with the experience expected from  a major modern
international airport. 
The South Satellite was constructed at the same time as the North Satellite and is ultimately in
need of renovation similar to what the NorthSTAR project is completing for the North Satellite.
However, complete renovation of the South Satellite cannot take place until the new
International Arrivals Facility is complete due to operational constraints in accommodating
international flights. Staff reviewed potential near term interior improvements to the South
Satellite. Certain improvements, like carpeting and casework replacement, could be completed
relatively quickly and inexpensively when compared to more expensive and intrusive work like
ceiling or lighting replacement. Since any of these improvements would be difficult to save
during a complete renovation, a smaller targeted investment makes more sense now, with the
larger, more costly improvements deferred until later. 
PROJECT JUSTIFICATION AND DETAILS 
The carpet in hold room areas is wearing badly over time and has ultimately become a "quiltwork"
of poorly patched sections. The gate podium casework is outdated, does not allow light
into the interior of the satellite and does not match the new gate standards established in 2013.
The white wall panels were installed as part of the original build out in the early 1970s, and the
pink wall panels on some interior public walls installed in the 1980s are old and outdated. The
entrances to the loading bridges are original to the building and should be replaced with new
doors with modern panic exit and security hardware. 
Project Objectives 
Improve the declining tenant and customer satisfaction and feedback related to the look and feel,
of the departure experience in the South Satellite.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 1, 2014 
Page 3 of 5 
Scope of Work 
This project will make interior renovations to the mezzanine and departure levels of the South
Satellite. These Phase One improvements include: 
New carpet, 
New vending alcove, 
Removal of old unused signage, 
Consolidation of payphones, 
Replacement of water fountains with new dual water bottle filling stations and
fountains, and 
New paint. 
All will be performed using Port forces and small works contracting; and remove and replace the
carpet using a major works contract.  The project will return with a future request for
authorization of Phase Two which includes new podiums and backstands, new wall panels, and
new door portals. 
Completing this project in two phases will allow for work to be performed around peak travel
seasons, allowing for a better traveling experience during construction. In order to complete the
work between peak travel seasons, Phase One will have a limited scope with minimal design
elements and be completed before the peak travel season. Phase Two will require a more
extensive design and will be designed while Phase One is in construction, which will allow for
longer lead times before beginning construction after the peak travel season. 
Schedule 
Commission Authorization for Design                   August 2014 
Commission Authorization for Construction Phase One        December 2014 
Issue Notice to Proceed Phase One                     February 2015 
Commission Authorization for Construction Phase Two        July 2015 
Issue Notice to Proceed Phase Two                     November 2015 
Construction Complete                           April 2016 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                     $18,900,000          $0   $18,900,000 
Budget Adjustment                  -$15,542,000    $1,809,000   -$13,733,000 
Revised Budget                     $3,358,000    $1,809,000    $5,167,000 
Previous Authorizations                  $631,000     $340,000     $971,000 
Current request for authorization              $700,000      $250,000      $950,000 
Total Authorizations, including this request     $1,331,000      $590,000    $1,921,000 
Remaining budget to be authorized         $2,027,000    $1,219,000    $3,246,000 
Total Estimated Project Cost              $3,358,000    $1,809,000    $5,167,000

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 1, 2014 
Page 4 of 5 

Project Cost Breakdown                     This Request       Total Project 
Design Phase                                   $0          $921,000 
Construction Phase                           $892,000         $3,927,000 
State & Local Taxes (estimated)                    $58,000          $319,000 
Total                                       $950,000          $5,167,000 
Budget Status and Source of Funds 
The South Satellite Interior Renovations project, CIP #C800549 is included in the 2014-2018
capital budget and plan of finance with a budget of $18,900,000. The capital budget decrease of
$15,542,000 was transferred to the Aeronautical Allowance CIP #C800404 resulting in no net
change to the Airport capital budget. The capital budget of $3,358,000 was included in the 2015
2019 capital budget and plan of finance. The expense budget increase (reflecting scope items
that do not qualify as capital improvements) has been included in the approved 2015 operating
budget. The funding source for both capital and operating costs will be the Airport Development
Fund (ADF). 
Financial Analysis and Summary 
CIP Category             Renewal/Enhancement 
Project Type              Renewal and Replacement 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        $5,167,000 
Business Unit (BU)          Terminal 
Effect on business performance  NOI after depreciation will increase 
IRR/NPV             N/A 
CPE Impact             $0.07 in 2015 relating to expense elements. $0.03
beginning in 2017 for capital costs. 
Lifecycle Cost and Savings 
The existing conditions in the South Satellite have been in place for 20 to 40 years. The life
expectancy for these systems and finishes has been exceeded, in some cases drastically. The
new systems and finishes are not expected to have significant repair costs in the first 5-7 years.
Preventative maintenance costs will be consistent with the current maintenance program. 
STRATEGIES AND OBJECTIVES 
This project supports the Century Agenda strategy of "advancing this region as a leading tourism
destination and business gateway" by providing targeted improvement, to the departure level of
the South Satellite.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 1, 2014 
Page 5 of 5 
TRIPLE BOTTOM LINE 
Economic Development 
This project represents an investment in our current facilities and supports the long-term vitality
of the airport, airlines and Airport tenant. This project also provides an opportunity to help 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
service through providing a pleasing experience for passengers. 
Environmental Responsibility 
There are a variety of sustainability opportunities to promote the Airport's environmental
responsibility. These include the use of locally sourced, recycled, re-used/refurbished materials
for podiums and backstands, carpet tiles, wall panel upgrades, and the use of low or no-VOC
paints. 
Community Benefits 
Updating the South Satellite will improve the experience of millions of international and
domestic visitors that travel through the facility each year.  The program manager will
collaborate with the Office of Social Responsibility (OSR) to maximize small business
participation. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Make no improvement to the South Satellite concourse or mezzanine levels.
The South Satellite will keep the current, outdated appearance and the airlines will continue to
operate in a facility with a 40-year-old countenance. This is not the recommended alternative. 
Alternative 2)  Wait and make these changes to the terminal as part of a larger project to fully
renovate the South Satellite, which will be further defined in the future, that would address
lighting, heating ventilation and air conditioning, structural and seismic upgrades.  This
alternative would mean that service levels for the international carriers and passengers would
deteriorate to a level that is unacceptable. This is not the recommended alternative. 
Alternative 3)  Make the renovations to the concourse levels and mezzanine levels, which will
improve the overall look and feel of the terminal and add to the overall passenger experience
while meeting the needs of our airline customer. This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
August 5, 2014  The Commission authorized design funds for the South Satellite
Interior Renovations project.