6c supp

Item No.  6c_supp 
Meeting Date: August 15, 2017
Port of Seattle 
Investment in Airport Facilities 
to meet Regional Demand 
August 15, 2017

Contents 
Airport Investment Purpose 
IAF Benefits 
North Satellite Benefits 
Investment Magnitude 
Video files 
Final Views 
Progress Photos 
Appendix 
Investment to meet existing regional demand 
2

Port Investment in Airport Capacity 
Added capacity is needed to: 
Keep up with growth driven by the region 
Provide international connectivity and related benefits
state-wide 
Completes Two Major Facilities 
International Arrivals Facility (IAF) 
North Satellite Expansion (NSAT) 
SeaTac Airport supports regional economic growth 
3

IAF                         Aerial View 
4

Benefits of IAF 
Improves processing and speed and customer service from
1,200 to 2,600 pax/hr capacity 
Provides modern welcoming for international travelers
coming to the world class cities in our region 
Supports 6 new international airlines since 2016 
Each provides $89M regional economic benefit 
Provides 20 dual-capable flexible gates for both large
international aircraft and smaller domestic aircraft 

IAF            Capability to welcome arriving international passengers 
5

NSAT                     Aerial View 
6

Benefits of NSAT 
Adding 8 new gates for a total of 20 contact gates 
Modernizes 50 year old facility (1972-2021) 
Seismic reinforcement of the North Satellite 
9 bay expansion adding 268,000 sf for passenger comfort and
increased concessions 
Adding 3rd floor for Alaska (AS) Lounge and signature
restaurant 
LEED design demonstrating environmental commitment to
passengers, community and business partners 
Improved passenger experience and operational efficiency 
NSAT                      Benefits 
7

Investment 
Total Estimated Investment = $766M 
IAF 
This Budget Request = $105.6M 
This Funding Authorization = $284.0M 
Total Estimated Investment = $671M 
NSAT    Investment 
This Budget Request = $107.5M 
This Funding Authorization = $270.3M 

Commission request 
8

IAF overfly 
IAF walk-through 
NSAT overfly 
NSAT walk-through 

Videos 
9

IAF                    View of Pedestrian Bridge 
10

IAF                 View of Pedestrian Bridge Interior 
11

IAF                   View of Baggage Hall Interior 
12

Gates A20/21 
New Hardstand Ramp 

IAF                         Progress Photos 
13

New NE Ground
Transportation Lot 



IAF                         Progress Photos 
14

NSAT                     Aerial View 
15

Transit Level - New 
Transit Level - Existing 




NSAT                   Transit Level 
16

Concourse Level Gate Lobby - New 
Higher Ceilings      Technology 
Natural Light       Faster Process 
Open Concept      Just-in-time Boarding 

Concourse Level Gate
Lobby - Existing 



NSAT                  Concourse Level 
17

Marketplace - Existing 
Marketplace - New 






NSAT                 Marketplace 
18

NSAT        Lounge and Restaurant Expansion above Concourse 
19

NSAT        Lounge and Restaurant Expansion above Concourse 
20

North Satellite
Today 

North Satellite
Future 




NSAT                 Progress Photos 
21

Preliminary 
Terminal Work 



Expansion Excavation Area 


NSAT                 Progress Photos 
22

Excavation / foundation columns      Temporary Walkways for passenger safety 




NSAT                 Progress Photos 
23

IAF & NSAT - Investment to meet existing Regional Demand 
24

Appendices 
IAF  Slides 26 to 31 
NSAT Slides 32 to 36 

Appendix of IAF and NSAT Request Presentations 
25

IAF Request 
August 15, 2017

Design-Build Contract Status 
Set Target Budget &
Target Schedule 
1/04/16            8/15/17 
Test, Validate, Confirm 
Project Definition
Document                              Full Build 

Validation     GMP Development          Post-GMP 
Period          Period               Period 

Commence Design, Early Work
Construction, and Long Lead Time
7/20/15                 Item Procurement 
The Contract Contemplated Three Distinct Time Periods 
27

IAF Budget Overview 
$608.4M  Base Budget 
IAF  PROJECT     $ 41.0M  Phase 2 Sterile Corridor Extension 
$ 11.0M  Phase 2 Balance of Scope Acceleration 
$660.4M  Revised Budget to Accelerate Work 
$660.4M  Revised Budget 
OTHER CAPITAL PROJECTS   $ 5.5M  Narrow Body Optimization at SSAT 
$ 18.5M  Baggage Optimization Below IAF 
$684.4M  Current Budget 
Original budget previously increased to include 2 separate CIPs and new scope 
28

IAF Request 
Current Completion Estimate: 
$766 M 

Understated Initial Estimate                                          $29.6M 
Design Evolution                               $22M 
Scope Added by Port/Airlines                             $20M 
Other Required Cost Increases                      $15M 
Market Conditions                    $14M 
Schedule/Phasing Complexity         $5M 
$0    $5    $10    $15    $20    $25    $30
Factors Contributing to Budget Increase 
29

IAF Request 
Current Completion Estimate: 
$766 M 

Understated Initial Estimate
28%         21% 
Design Evolution
Scope Added by Port/Airlines
5%                   19% 
Other Required Cost Increases
13% 
Market Conditions                                    14% 
Schedule/Phasing Complexity

Factors Contributing to Budget Increase 
30

Commission Action 
Authorize increase of $105.6M to project budget 
Authorize $284M increasing project funding to $766M 
Authorize an extension of the current design-build
contract to December 31, 2020 
Authorize execution of a Guaranteed Maximum Price
(GMP) or multiple mini-GMPs, contract amendments
and change orders, as required, to complete the IAF
project 
IAF Action Requested 
31

NSAT Request 
August 15, 2017

NSAT Request 
Current Completion Estimate: 
$658 M 
(Capital Only) 

Understated Initial Estimate/Design Evolution                                            $22M 
Replenishment of Management Reserves           $5M 
Scope Added by Port/Airlines -Accepted                                         $21M 
Other Required Cost Increases (TSA,WA tax increase, etc.)                            $12M 
Market Conditions/Contractor Availability                                              $24M 
Schedule/Phasing Complexity                                          $23M 
$0      $5     $10     $15     $20     $25
Factors Contributing to Capital Budget Increase 
33

NSAT Request 
Current Completion Estimate: 
$658 M 
(Capital Only) 

Understated Initial Estimate/Design Evolution                           20% 
Scope Added by Port/Airlines (Accepted)               21%                      5% 
11% 
Replenishment of Management Reserve
Other Required Cost Increases (TSA,WA tax increase, etc.)
21%            22% 
Market Conditions/Contractor Availability
Schedule/Phasing Complexity

Factors Contributing to Capital Budget Increase 
34

Understated Initial Estimate/Design Evolution 
Lack of sufficient design development allowance after 60% 
Other Required Cost Increases 
Sales Tax Increase 
100% worker & employee security screening 
Future regulatory requirements 
Market Conditions / Contractor Availability 
Lack of Subcontractor availability 
Labor Shortages 
Lack of qualified labor 
Ability to "pick and choose" projects (Port restrictions including badging, security,
limited access and laydown area) 
Schedule/Phasing Complexity 
Maintaining current levels of operational & customer service 
Reconstructing vertical circulation core while PAX moving through area 
Constructing high bay roof, then demolishing existing roof and structure while PAX
moving below 
Factors Contributing to Budget Increase 
35

Commission Action 
Authorize increase of $107.5M to project budget 
Authorize $270.3 M increasing project funding to $670.6M 
Amend contract with HP for $161.6M for total contract value of $453.6M 
Authorize execution of all change orders within authorized budget and scope
without returning for additional Commission authorization 
Use Port crews to support NSAT construction 
Authorize staff to enter a Tenant Reimbursement Agreement with AS to
reimburse each other as appropriate for improvements that are part of the
NSAT 

NSAT Action Requested 
36

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