COMMISSION 
AGENDA MEMORANDUM                        Item No.          6b 
ACTION ITEM                            Date of Meeting     February 28, 2017 
DATE:     February 17, 2017 
TO:        Dave Soike, Interim Chief Executive Officer 
FROM:    Jeffrey Brown, Director, Aviation Facilities and Capital Programs 
Michael Ehl, Director, Airport Operations 
Wayne Grotheer, Director, Aviation Project Management 
SUBJECT:  South Satellite Renovations Project Planning and 
Programming Phase Funding Authorization (CIP #C800743) 
Amount of this request:                                 $4,300,000 
Total estimated project cost:      To be determined at conclusion of
planning and programming phase 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to (1) initiate programming
and develop design alternatives for the South Satellite Renovations Project using Port staff and
consultants and (2) advertise and execute a project-specific service agreement for Project
Management Services for the South Satellite Renovations Project. 
This authorization is for $4,300,000. 

EXECUTIVE SUMMARY 
The South Satellite (SSAT) is approximately 45 years old and is in need of complete renovation. 
The driver is similar to the current modernization and expansion project for the North Satellite
(NSAT), which was also constructed in the early 1970s. The SSAT serves a mix of domestic and
international carriers and will continue to be a critical terminal asset for Sea-Tac airport. 
Renovation of the SSAT's aging infrastructure is needed to meet airport level of service goals,
current building and structural code requirements and sustainability goals (e.g. Leadership in
Energy and Environmental Design (LEED) certification, water conservation, energy conservation,
and material selection). The planned renovation will, at minimum, include abatement of
regulated materials; renewal or replacement of basic mechanical, electrical, communications,
heating/ventilation/air conditioning (HVAC) and plumbing systems along with seismic upgrades;
and improvements to public areas (hold-rooms, concessions, restrooms, etc.) to effectively
handle current and growing passenger volumes while meeting environmental standards and

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                                  Page 2 of 7 
Meeting Date: February 28, 2017 
objectives. The potential need or opportunity for expansion of the satellite will also be explored 
during alternative concept development. 
This  request  authorizes  staff  to  engage  specialty  planning,  programming  and  project
management professionals for  development and analysis of alternative concepts for  the
renovation of SSAT. This request also authorizes the advertisement and execution of a Project
Management Services contract to support Port staff during the definition of the project. The
contract duration will be until project completion. Staff will return to Commission in the fourth
quarter of 2017 to seek concurrence on a preferred design concept; request additional project
authorization to continue project development; and amend the project management services
contract to include support during design and construction. This authorization is for $4,300,000.
The total estimated project cost is to be determined. Staff will return for approval of a
preferred design concept and updated overall project cost estimates will be available at that
time. 
The Port of Seattle's Small Business Generator (PortGen) program has conducted an initial 
outreach for this program this month and will provide outreach training related to SSAT. The
procurement will include small business utilization requirements. 
JUSTIFICATION 
The South Satellite was constructed at the same time as the North Satellite and is in need of
renovation similar to what the NorthSTAR project is completing to the North Satellite. The core
mechanical and electrical utilities as well as the structure of the original concourse have
remained largely unchanged since it was built. A number of projects have been completed and
are underway make improvements necessary to operate the facility in the near future.
However, those projects do not address the significant renovations required to meet long-range
capacity and customer experience goals. 
The Commission's authorization of this action request will permit staff to launch the planning
and programming work necessary to advance this effort to identify a preferred concept for the
renovation. 
DETAILS 
This planning and programming effort will be undertaken by staff with the support of a
previously authorized  Planning Services IDIQ and a Project Specific Project Management
Services contract to be authorized with this request. 
This effort will confirm the project justification, identify program requirements, perform an
alternatives analysis, and identify a preferred option for further development. 
No design will be completed as part of this effort. 


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COMMISSION AGENDA  Action Item No. 6b                                  Page 3 of 7 
Meeting Date: February 28, 2017 
Scope of Work 
Gather, assemble and catalogue all information necessary to effectively describe the current and
projected operational and functional requirements as well as identify additional desired features of
the SSAT. 
Develop alternative concepts including preliminary cost estimate, scope and schedule. 
Perform an alternative concepts analysis with validated future projected needs of the airport. 
Schedule 
Activity 
Commission authorization to begin planning     2017Q1 
and programming effort 
Project Management Services contract          2017Q1 
advertisement 
Project Management Services contract award    2017Q3 
Alternative concepts analysis complete          2017Q3 
Commission approval of preferred concept      2017Q4 
and authorization to complete project
definition and start design 
Design Services RFQ initial advertisement        2018Q1 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternatives Considered: 
1. Defer action 
Cost Implications: Every year of delay to the project adds to construction cost at an inflation
rate currently estimated to be 5% per year. A detailed analysis of operational cost/revenue
implications has not been performed. 
Pros: 
(1)   Postpones investment potentially making funding available for other priorities 
Cons: 
(1)   Postpones the Airport's commitment to international service by US and foreign-flag
carriers to renovate and modernize the SSAT 
(2)   Continues use of a facility that is outdated, undersized and difficult to maintain due to
aging equipment and systems 
(3)   Does not deliver architectural and customer facility enhancements to improve the
passenger experience at the SSAT
This is not the recommended alternative. 


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COMMISSION AGENDA  Action Item No. 6b                                  Page 4 of 7 
Meeting Date: February 28, 2017 
2. Initiate design for a mid-term refurbishment of the satellite which would include scope such
as a complete structural upgrade; complete HVAC replacement/upgrade; new terrazzo,
lighting, ceiling and holdroom seating; and renovated and expanded restrooms, etc. 
Cost Implications: The authorization request for this option would likely be approximately 
$26,000,000 for design and a total project budget of $110,000,000. 
Pros: 
(1)   Prioritizes addressing code compliance and refresh of current facility 
(2)   This renovation would likely be delivered faster than more comprehensive renovation
alternatives
(3)   The  total  cost  of  this  program  would  likely  be  significantly  lower  than  the  full
renovation concepts to be explored in the preferred alternative scenario 
Cons: 
(1)   Provides bare minimum facility improvements to meet current building code
(2)   This alternative would not provide a significantly improved passenger experience or
operating facility
(3)   Misses opportunity to address a program selected based on a more comprehensive
analysis of facility requirements and business goals 
(4)   Does nothing to repurpose the Federal Inspection Services space that will be vacated
when the IAF is complete. 
This is not the recommended alternative. 
3. Authorize funding sufficient to complete a thorough alternatives analysis and procure a
Project Management Services contract to support the full delivery of this project. 
Cost Implications: $4.3M, total project budget TBD 
Pros: 
(1) This effort will result in a preferred design concept for further development based on a
thorough gathering of requirements and consideration of business goals 
(2) Provides opportunity to begin planning and programming and engagement with project
stakeholders 
(3) Supports Staff with the resources appropriate to undertake this initiative 
(4) Moves toward fulfilling the commitment to the International Carriers to upgrade the
SSAT.
Cons: 
(1) A complete renovation of the SSAT could constrain the flexibility of Port to financially
support other priorities. 
This is the recommended alternative. 


This version as revised 9/16/2016

COMMISSION AGENDA  Action Item No. 6b                                  Page 5 of 7 
Meeting Date: February 28, 2017 

FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
COST ESTIMATE 
Original estimate                               $600,000,000               $0   $600,000,000 
AUTHORIZATION 
Previous authorizations                            $300,000               $0               $0 
Current request for authorization                $4,300,000               $0      $4,300,000 
Total authorizations, including this request       $4,600,000               $0      $4,600,000 
Remaining amount to be authorized                   TBD            TBD            TBD 
Annual Budget Status and Source of Funds 
This project was included in the 2017   2021 capital budget and plan of finance with
preliminary estimated total cost of $600 million. The funding source for preliminary project
planning will be the Airport Development Fund. The funding plan for the full project will include
future revenue bonds and will likely include Passenger Facility Charge (PFC) revenues. This
funding plan will be refined as the scope, cost and timing of the project become more clearly
understood. 
Financial Analysis and Summary 
The financial implication of this project, including the impact on passenger airline cost per
enplaned passenger (CPE) will be done upon the completion of this preliminary project planning
scope of work. 
Future Revenues and Expenses (Total cost of ownership) 
An important part of the exploration of each design concept will be development of total cost
of ownership estimates for each alternative. Therefore, no total cost of ownership information
is available at this time but will be included in future requests for commission action. 
ADDITIONAL BACKGROUND 
The renovation and expansion of the SSAT will address the existing facility's deficiencies. It will
also fulfill a commitment the Port made to the international and foreign flag carriers to improve
the facilities in which they operate. An excerpt from a memo commemorating that
commitment is below and a copy of that memo is attached to this memo (6b_attach). 

"Second, the foreign flag carriers stated in testimony to Commission that the South
Satellite facility was not up to par with Concourse A and the future North Satellite that
will be fully occupied by Alaska Airlines. Certain international airlines described the

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COMMISSION AGENDA  Action Item No. 6b                                  Page 6 of 7 
Meeting Date: February 28, 2017 
South Satellite concourse as "the least best" STIA concourse, "third world," "cramped,"
etc. The Commission noted the airlines' concern about the 46-year-old South Satellite
and as a result staff has added the start of the renovation of the South Satellite to the
coming 5 year capital plan for approval this year." (Port of Seattle Commission Meeting
Memo 3c from September 8, 2015)
Interim upgrades to the facility have been made and are in progress to address immediate
concerns for operating the satellite in the short-term. In 2015 and 2016, improvements such as
carpet and casework replacement were completed to improve passenger experience by
modernizing the aesthetic appearance of the satellite. Additionally, there are  two active
projects for the SSAT in design. 
C800818 SSAT Column/Beam Structural Improvements will complete a number of
structural improvements to columns and beams on the concourse, international
corridor, and ramp levels of the building. This project will address existing dead and
live load structural conditions in the SSAT. The project will not address lateral load
(i.e., wind and seismic) structural requirements. 
C800376  SSAT  HVAC  addresses  immediate  needs  for  improved  reliability  and
capacity of the SSAT HVAC system. 
These projects do not address all of the requirements to operate the facility for the long-term. 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
(2)   Commission  agenda  memo  3c  from  the  September  8,  2015,  Commission  public
meeting commemorating the wrap-up and next steps following a Forum on Seattle-
Tacoma International Airport's International Arrivals Facility 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
January 17, 2017  The Commission authorized $1,300,000 for the design of the South Satellite
Heating Ventilation and Air Conditioning (HVAC) Upgrade project. 
November 8, 2016  The Commission authorized design and construction for the South Satellite
Structural Improvements project. 
August 9, 2016  The Commission approved the implementation of the 2017  2021 Long Range
Plan that included the planning for renovation of the SSAT as a priority action in advancing
this region as a leading tourism destination and business gateway. 
March 14, 2016  The Commission authorized award/execution of the major public works
construction contract for Phase Two of the South Satellite Interior Renovations project. 
November 24, 2015  The Commission authorized construction of Phase Two of the South
Satellite Interior Renovations project. 
September 8, 2015  The Commission discussed the wrap-up and next steps including a
commitment to add a SSAT Renovation project to the 5-year CIP.

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COMMISSION AGENDA  Action Item No. 6b                                  Page 7 of 7 
Meeting Date: February 28, 2017 
August 11,  2015   The  Commission  led  a  Special  Meeting,  Roundtable  with  Airline
Representatives related to the International Arrivals Facility (IAF) and SSAT. 
December 9, 2014  The Commission authorized construction of Phase One of the South
Satellite Interior Renovations project. 
August 5, 2014  The Commission authorized design funds for the South Satellite Interior
Renovations project. 
















This version as revised 9/16/2016