PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA              Item No.      6b 
ACTION ITEM            Date of Meeting    August 5, 2014 

DATE:    July 29, 2014 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Michael Ehl, Director Airport Operations 
Wayne Grotheer, Director Aviation Project Management Group 
SUBJECT:  North Satellite Renovation & North Satellite Transit Station Lobbies Project (CIP
#C800556) 
Amount of This Request:       $ 15,717,800   Source of Funds: Airport Development 
Fund and Future Bond 
Est. Total Project Cost:        $405,532,944 
Proceeds 
Est. State and Local Taxes:      $ 27,830,600 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to take the following actions
related to the North Satellite Renovation & North Satellite Transit Station Lobbies Project at the
Seattle-Tacoma International Airport: 
(1) increase the project scope to expand the building, add 5 additional aircraft gates, and add
additional vertical circulation to facilitate aircraft boarding and deplaning, increasing the
budget by an estimated $191,323,143 for a revised total budget of $405,532,944; 
(2) complete the design for an additional $15,717,800 and execute amendments to existing
design, planning and program management consulting contracts accordingly; 
(3) execute future consulting contracts  for construction testing and inspection, safety
services, alternative contracting procurement support, and gate planning and utilization 
analysis; and 
(4) use General Contractor/Construction Manager (GC/CM) alternative public works
contracting, prepare and advertise for a GC/CM contractor. 
This request is for $15,717,800 of an estimated total project cost of $405,532,944. 
SYNOPSIS 
The North Sea-Tac Airport Terminal Renovation Program (NorthSTAR) includes the
consolidation  of Alaska Air Group (AAG) operations  within Concourse C, a north end
renovation of the Main Terminal ticketing level, and a renovation and expansion of the North
Satellite (NSAT) which includes enhancements to the three stations in the north loop of the
Satellite Transit System (STS). The program, which is a collaboration of the Port and AAG,
intends to create and promote a user-friendly "curb-to-seat" passenger experience through the

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 29, 2014 
Page 2 of 10 
integration of facility improvements, technology,  and airline services. The scope of the
NorthSTAR program was initially defined by a study prepared by AAG and its consultant. The
Port and AAG refined the scope of this study by applying recent gate allocation and capacity
data to support forecasted Airport-wide gate demand and capacity. 
The North Satellite project is the largest piece of the NorthSTAR program. At the completion of
the 15% conceptual design of the north satellite project and the airport-wide gating analysis the
Port and AAG made a collaborative recommendation not only to renovate the North Satellite, but
to expand the facility's size to meet program requirements and capacity to 20 gates in response to
projected increases in airport-wide activity for all domestic and international growth updates to
Sea-Tac Airport's capacity projections. This decision results in an approximate $191,323,143 
increase to the current estimated project cost, for the North Satellite project a part of the
NorthSTAR program, of $214,209,801 for a revised total project cost of $405,532,944 for the
project. The current estimated NorthSTAR overall program budget, including the total NSAT
project cost  is $505,835,444. Staff will return later in 2014 to request authorization for
preconstruction services and to award the preconstruction services contract with the selected 
GC/CM contractor. 
BACKGROUND 
The NSAT is over 40 years old and has had only limited upgrades to the building and its
infrastructure. The building's mechanical, electrical, plumbing, and communication systems
need modernization, renewal, and replacement. Additionally, the proposed renovation will
seismically reinforce the building to current building code compliance. 
After the Letter of Agreement between the Port and AAG was signed on April 5, 2012, the
NSAT scope as originally defined by the AAG conceptual study has been steadily refined by
validating NSAT scope elements through an extensive planning and design process to ensure the
project will meet Port and AAG long-term facility enhancement and capacity needs. These
efforts included an Airport-wide analysis of near and long-term gate capacity and demand
coupled with the NSAT design facility program requirements. 
The 15% conceptual design of the north satellite began in January 2013 and resulted in the
development of 16 concepts that included 3 new aircraft contact gates (from the current 12 to 15
gates consistent with AAG's conceptual study). These concepts were evaluated based on how
well each of them met the functional and operational requirements for holdrooms, concessions,
passenger amenities, circulation, and terminal efficiency. Options that did not adequately
respond to these requirements were eliminated, and the team further refined four original
concepts. These new expansion concepts were developed to address concerns that the areas 
needed for holdrooms, concessions and amenities could not be provided or balanced within the
limitations of the existing building envelope or on one floor level. In October 2013, these four
concepts were reviewed and evaluated by Port and AAG staff. Of these, the two viable concepts 
recommended by the project team were presented to and independently approved by the
executive level Port and AAG Steering Committees. These two recommended options included: 
1) a concept within the original building envelope, and 2) a concept which expanded the existing
building area or "footprint."

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 29, 2014 
Page 3 of 10 
Concurrent with the development of these two recommended design concepts for the NSAT, Port
staff recognized a need to update the airport-wide gate demand analysis as part of the long-term
planning process. This was due to changes in domestic and international gate demand and a May
2013 request by AAG for an additional 5 gates on Concourse D. This analysis objectively
approached terminal development based on an airport-wide assessment of near-term and longterm
gate need, and not just the growth of a single airline. 
The study evaluated whether the anticipated gate shortage could be managed operationally, or if
additional aircraft gates would be required. The study determined where additional gates were
needed and how these gates could be best accommodated. The study incorporated not only
anticipated domestic and international activity, but also the concurrent operational impacts on
gate availability due to: 
AAG's sole tenancy of the NSAT and its request for an additional 5 mainline gate positions
on Concourse D beyond those originally planned as part of NorthSTAR. 
Additional gates needed to accommodate American Airlines/US Airways, Southwest/Air
Tran, and United/Continental mergers.  (Note:  While mergers consolidate operations,
additional gates may be needed due to coincident flight schedules and differing aircraft types
wide-body vs. narrow-body during peak times at contiguous gate locations). 
Large scale concurrent construction projects of the NorthSTAR and International Arrivals
Facility (IAF) Programs which will temporarily close gates on Concourse A, the South
Satellite, and the NSAT in years 2015 through 2020. 
On October 3, 2013, Port staff presented the Airport-wide Gating Analysis to AAG and Aviation
Division leadership. The analysis found: 
There are significant challenges posed by near-term dynamic gate demand and construction
impacts over the next 5 to 7 years. 
Sufficient near and long-term gate capacity could not be created through operational
measures. 
An additional five contact gates at the NSAT beyond the three additional contact gates
included in the NorthSTAR program are needed to satisfy both the near-term constraints on
gate availability and anticipated gate demand. 
The NSAT is the most viable location to add gate capacity without impacting other airport
facilities. 
A NSAT terminal expansion not only meets AAG's operational needs with a total of 20
NSAT gates, but also provides a capacity buffer between the NorthSTAR Program and the
contemplated future NSAT expansion for 30 gates in the current Airport Master Plan. 
A larger facility more directly contributes to AAG's vision of a "frictionless" passenger
experience and AAG's vision of an improved "curb-to-seat" level of service.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 29, 2014 
Page 4 of 10 
On October 17, 2013, AAG executive leadership provided written concurrence to renovate and
expand the NSAT to accommodate 20 contact gate positions, based on the findings of the
Airport-wide Gating Analysis and the benefits of expanding the NSAT. 
On January 14, 2014, Airport staff briefed the Commission on the details of the Airport-wide
gate analysis and provided an  overview of the scope increases resulting from the
recommendation to expand the satellite. AAG also spoke in support of this important decision. In
July 2014 a Majority-In-Interest ballot for the recommendation to expand the NSAT for 20
contact gate positions was approved by signatory airlines. On July 22, 2014, Airport staff
updated the Commission on the refined details of the recommendation, increased scope,
architectural theme, building massing, floor plans, aircraft parking layout, and the estimated
increase in the cost for the expansion and the total project. Staff also recommended General
Contractor/Construction Manager (GC/CM) alternative contracting be used to construct the
NSAT expansion and renovation. 
This authorization request includes the addition of vertical circulation (escalators/escalators) and
ramp-level vestibules to accommodate passenger loading and unloading from the rear (i.e. aft)
doors of gated aircraft. Both the Port and AAG staff have determined that this capability has
positive airport-wide impacts and operational benefits. Providing passenger access to ramp level
aft aircraft door loading and unloading results in an additional non-contact aircraft parking
position (a 21st non-contact "gate") as well as facilitates contiguous or "swing" operations of
regional and mainline aircraft at the north end of the satellite. This will improve gate-use
efficiency and corresponding airport-wide gate capacity. In addition, should train service to the
satellite be disrupted due to a long duration outage, these apron level hold rooms may serve as
vestibules for busing operations to the main terminal. 
PROJECT JUSTIFICATION AND DETAILS 
Since its construction in 1971, NSAT infrastructure improvements have been limited to minor
plumbing and electrical upgrades. The remaining infrastructure and interior finishes need
renewal and replacement to improve the building's utilization, increase operational efficiencies,
reduce energy consumption, improve sustainability and sustainable asset management, enhance
customer comfort and service, and ensure compliance with applicable building codes. The
renovation and expansion will accommodate Port and AAG's  goal to improve passenger
experience from the curb (drop-off) to the gate and will provide needed increases in gate
capacity to meet current and forecasted gate demand through 2025. 
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 a total of
20 contact gates at NSAT.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 29, 2014 
Page 5 of 10 
Optimize gate door contact points, loading bridges and aircraft parking positions,
including fuel hydrants and other support utilities. 
Accommodate the future expansion of NSAT and minimize impacts to operations when
constructed. 
Meet or exceed current sustainability goals with potential Leadership in Environmental
and Energy Design (LEED) certification. 
Create a "frictionless" and stress-free passenger experience within NSAT. 
Create an exciting and attractive facility integrating holdrooms, diverse amenities and
numerous concessions. 
Maintain and promote a Northwest sense of place through the design of architectural
finishes and connected technologies. 
Scope of Work 
This request includes the following design elements at the NSAT and, as noted below, certain
elements at Concourse C and the Main Terminal: 
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 5 new NSAT aircraft gates with passenger loading bridges to be provided by
AAG (for a total of 20) 
Seismic reinforcement 
Addition of an Alaska Airlines premium traveler lounge (Alaska Board Room) 
NSAT Train System lobby enhancements construction (including the NSAT, Concourse
C and Main Terminal stations) 
Expansion, renewal and replacement of mechanical, electrical, plumbing, vertical
transportation, and communication systems 
Aircraft taxi lane changes around the NSAT 
Significant sustainability features and components 
Addition of vertical circulation (escalators/elevators) and  ramp-level vestibules to
facilitate passenger loading and unloading. 
Alternative Contracting Methodology General Contractor/Construction Manager 
The Port is also requesting Commission authorization to use the General Contractor/Construction
Manager (GC/CM) contracting method including electrical and mechanical subcontractors for
public works projects as a certified public body in compliance with RCW 39.10.340. This
alternative contracting methodology may be used for public works projects where at least one of
the following conditions is met: 
1.  Implementation of the project involves complex scheduling, phasing, or coordination. 
The NSAT is a 24 hour, 7 days per week complex operating terminal located within and
surrounded by a restricted and secured airport operating area. The renovation and
expansion of this facility will require multiple construction phases, airline and tenant
coordination and technical control requirements.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 29, 2014 
Page 6 of 10 
2.  The project involves construction at an occupied facility which must continue to operate
during construction. 
The NSAT will remain operational during construction, with construction activities
occurring in and around terminal operations and occupied areas. Detailed construction
planning will be required to assure safe and unobstructed airport operations as the facility
is expanded and systems installed and upgraded. 
3.  Involvement of the general contractor/construction manager during the design stage is critical
to the success of the project. 
GC/CM involvement during the design stage is critical in developing an appropriate
design approach to construction and assist in the development of early construction
packages before the design is fully complete. Design stage engagement will allow the
Port, AAG, GC and subcontractors to collaborate on constructability, value engineering,
construction phasing, early work packages and recommendations to keep costs in line
with approved budgets. Early review of drawings and specifications will also identify
more cost efficient design detailing prior to bidding and performing work, and reduce the
potential for change orders. 
4.  The project encompasses a complex or technical work environment. 
The NSAT is a 40-year old facility which requires substantial updating, installation and
coordination of sustainable, complex building systems. Construction activities will be
undertaken within a highly congested and technically challenging operating environment.
Advance involvement with the contractor in identifying and applying the appropriate
means and methods of construction within this environment is critical to the success of
this project. 
5.  GC/CM Mechanical and Electrical Subcontractor Selection 
In compliance with RCW 39.10.340, the Port intends to include alternative mechanical
and electrical subcontractor procurement as part of the GC/CM alternative contracting
procedure. These key subcontractors are selected based on qualifications and hired early
to participate in the preconstruction phase. The benefit of selecting mechanical and
electrical contractors in this alternative methodology lies in the same level of advance
participation and involvement these trades gain by participating in the design and
advance packaging development as afforded the GC/CM. This will allow the Port to
leverage the expertise of the mechanical and electrical contractors to streamline the utility
coordination and reduce the design conflicts and associated risks. The phasing out of old
mechanical and electrical systems and phasing in of brand new mechanical and electrical
systems for the whole satellite while maintaining service and comfort for the passengers,
24hr a day 7 days a week, will be a major challenge of the project and having these subs
input in to early planning and phasing will be vital. 
It is anticipated that the GC/CM delivery methodology will provide more opportunities for cost
savings due to construction schedule improvements that reduce cost escalation than the
traditional Design-Bid-Build procurement approach. Staff will return later in 2014 to request

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 29, 2014 
Page 7 of 10 
authorization for preconstruction services and award of the preconstruction services contract
with the selected GC/CM contractor. 
Schedule 
GC/CM preconstruction activities and construction on advance work packages would occur
before NSAT design completion. This is reflected in the following schedule: 
GC/CM Selection                             November 2014 
Authorize Preconstruction Services                     December 2014 
Construction on Advance Work Packages                Fall 2015 
Design Completion                             Summer 2016 
All Phased Construction Complete                     Summer 2019 

FINANCIAL IMPLICATIONS: 
Project Breakdown: 
Previous Budget     This Budget Request    Total Project Budget 
Construction Phase         $157,753,600         $158,253,000         $316,006,600 
RMM/ERL           $5,800,000            $0        $5,800,000 
Design Phase             $37,573,601          $18,322,143          $55,895,744 
State & Local Taxes         $13,082,600          $14,748,000          $27,830,600 
Total                 $214,209,801         $191,323,143          $405,532,944 

Authorizations: 
Capital         Expense        Total Project 
Original Budget                   $194,300,000     $5,000,000       $199,300,000 
Prior adjustments to Budget *            $14,109,801      $800,000        $14,909,801 
Current Budget                   $208,409,801     $5,800,000       $214,209,801 
Proposed Budget Increase/Decrease       $191,323,143          $0       $191,323,143 
Revised Project Budget               $399,732,944     $5,800,000       $405,532,944 
Previous Authorizations               $32,997,000      $200,000        $33,197,000 
Current Request for Authorizations        $15,717,800           $0        $15,717,800 
Total Authorizations - Incl. This Request    $48,714,800       $200,000        $48,914,800 
Remaining Budget to be Authorized     $351,018,144     $5,600,000      $356,618,144

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 29, 2014 
Page 8 of 10 
* Note: Reflects movement of scope associated with Program Management, Biometric Access Control Doors, two
elevators and eight escalators, grease interceptor, STS station remodels plus added budget for new NSDF freight
elevator. 
Budget Status and Source of Funds 
This project was included in the 2014 - 2018 capital budget and plan of finance with a budget of
$206.5  million, which incorporated  budget and funding for several other capital projects
transferred into this CIP and integrated into the NSAT project.  The increased costs will be
included in the 2015  2019 capital budget and plans of finance. The Airport Development Fund
(augmented as needed with the issuance of commercial paper) is the initial source of funds for 
this authorization but funding for the entire project will include Passenger Facility Charge
revenues (PFCs) and future bond issues. The Port anticipates issuing revenue bonds in late 2014 
or early 2015. 
The terms under which AAG will participate in the Port's NorthSTAR Program costs have been
established via an April 5, 2012 Letter of Agreement between the Port and AAG. The airlines
were briefed on December 18, 2013, with regard to the decision to expand the NSAT and the
resultant increase in budget. The formal Majority-In-Interest (MII) project approval process
outlined in Signatory Lease and Operating Agreement (SLOA) was followed with the airlines
voting in favor of this expansion and the project in July 2014. 
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        TBD  approximately $406 million 
Business Unit (BU)          Terminal 
Effect on business performance  NOI after depreciation will increase 
IRR/NPV             N/A 
CPE Impact             Estimated $1.39 in 2020 

The long-term funding plan will likely include the use of PFCs to pay a portion of the revenue
bond debt service, thus reducing the costs to be recovered through terminal rents. This could
significantly reduce the future CPE impacts of this project. 
Annual operating and maintenance costs will be analyzed during the completion of the final
project definition notebook.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 29, 2014 
Page 9 of 10 
STRATEGIC OBJECTIVES: 
This project promotes the Port's business goals to "Ensure Airport and Seaport Vitality" and "Be
a Catalyst for Regional Transportation Solutions." This is one of a number of projects that are
directly tied to the One-Time Reallocation (Airline Realignment) program, that are in alignment
with AAG's plan to consolidate its gate operations onto the NSAT and Concourses C and D. 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 
This project will increase the long-term ability of the Airport to serve a growing number of
passengers and airlines. Long-term vitality of the Airport benefits the regional economy and
nearby communities. The sustainable aspects of this project will benefit the local environment. 
Small Business Participation 
The project managers will collaborate with the Office of Social Responsibility to maximize small
business participation opportunities including, but not limited to Small Contractors and Suppliers
(SCS) participation in accordance with the Small Business Resolution 3618. 
Environmental Responsibility 
This project will incorporate environmental elements that are currently being analyzed. These
elements, or environmental performance criteria, aim to reduce energy and water consumption
and minimize lifecycle costs of the NSAT. As these elements are evaluated, they will be
incorporated into the project definition and design of the project. The pursuit of the United States
Green Building Council's Leadership in Energy and Environmental (LEED) certification is also
being evaluated. 
Community Benefits 
This project improves operations, building safety, and customer service at what will be the
primary location for the Airport's largest airline tenant. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Proceed with Original Scope (Not Recommended): Even though the NSAT would be
renovated per the original project scope, not expanding would result in increased operational
costs and potential delays due to limited peak-time gate availability. AAG would not be able to
consolidate its operations within Concourses C, D, and the NSAT and other airlines would be
required to operate in non-contiguous terminal areas. This option would not help meet the need
for gates airport-wide to accommodate growth and would result in a deteriorated level of service. 
Expand Elsewhere (Not Recommended): Provide additional gate capacity at Concourses A, B,
C, D or at the South Satellite. Expansion of the South Satellite or Concourse A would require
costly and lengthy relocations of existing cargo and aircraft maintenance facilities. Concourses
B, C, and D cannot be expanded due to site and operational constraints and costly adjacent
facilities and roadways.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 29, 2014 
Page 10 of 10 
NSAT Expansion (Recommended): Increase the size of the NSAT by extending the length of
NSAT by approximately two hundred forty feet to the northwest end of the existing building and
adding vertical circulation (escalators/escalators) and ramp-level vestibules to accommodate
passenger loading and unloading from the rear (i.e. aft) doors of gated aircraft. This will 
accommodate the addition of five contact gates for a total of twenty that would provide Alaska
Airlines capacity to meet long-term demand and remain operationally consolidated beyond 2025.
This expansion is within the Airport's current master plan and can be done without significant
impacts to adjacent concourse operations. This expansion will accommodate a future expansion
of the NSAT to a 30-gate capacity as identified in the master plan. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
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.