PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA                      Item No.         7b 
STAFF BRIEFING 
Date of Meeting        July 22, 2014 
DATE:      July 14, 2014 
TO:         Tay Yoshitani, Chief Executive Officer 
FROM:     Michael Ehl, Director Airport Operations 
Elizabeth Leavitt, Director Aviation Planning & Environmental 
Wayne Grotheer, Director Aviation Project Management 
SUBJECT:   North Satellite Expansion 
NorthSTAR Program  Seattle-Tacoma International Airport 
SYNOPSIS 
The NorthSTAR program is an outcome of Alaska Air Group's (AAG's) goal to
concentrate and consolidate the operations of Alaska Airlines and Horizon Airlines at the
north end terminal facilities of the Airport. AAG and its consultants developed the overall
scope of the NorthSTAR program in the fall of 2011 that includes five renovation
projects.  During  the  15%  conceptual  design  phase,  both  the  Port  and  AAG  staff
collaboratively concluded that the North Satellite requires renovation, infrastructure
upgrades, and expansion to improve customer service and balancing the needs for
holdrooms, concessions, and circulation space to meet the overall program vision. Port
and AAG's leadership approved staff's recommendation in October 2013 to expand the
North Satellite by approximately 181,000 square feet and to provide a total of 20 gates. 
On January 14, 2014, the Commission was briefed on staff's recommendation to expand
the North Satellite and add additional gates. Early in July, the airlines voted favorably on
the MII for expansion of the North Satellite.
This briefing is an update focused on: 
The recommendation to expand the North Satellite to accommodate 20 aircraft
contact gate positions. 
The final North Satellite architectural concept, building massing, floor plans, added
vertical circulation and the potential baggage system. 
The Level of Service (LOS) for holdrooms, concessions, circulation and restrooms in
the expanded North Satellite. 
The recommendation to use  General Contractor/Construction Manager (GCCM)
procurement methodology for construction. 
On July 29, 2014, staff intends to seek Commission authorization for design of the North
Satellite expansion, the associated additional budget, procurement of outside services, use
of GC/CM contracting methodology and preconstruction services for the GC/CM. The

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 14, 2014 
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program, which is a collaborative effort of the Port and Alaska Air Group, is now
scheduled for completion in 2020. 
BACKGROUND 
Expand the North Satellite to accommodate 20 aircraft contact gate positions: 
Since April 5, 2012, when the Letter of Understanding (LOU) between the Port and AAG
was signed, the North Satellite scope as originally defined by the conceptual study
prepared by AAG and its consultant has been steadily refined by validating North
Satellite scope elements through a planning and design process to assure 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 North Satellite design facility program requirements. 
The 15% conceptual design of the North Satellite project began in January 2013 and
resulted in the development of 16 concepts for the North Satellite renovation that
included three additional gates per the original plan. These concepts were evaluated
based on an assessment of how well each option met the functional and operational
requirements for the aforementioned facility program. Options that did not adequately
respond to these requirements were eliminated, and the team modified four options to
expand the North Satellite to accommodate holdrooms, concessions, and amenities that
would not fit within the existing building envelope or on the concourse floor level. In
October 2013, these four options were independently evaluated by Port and AAG staff 
resulting in consensus that two of these options were viable. These two options were
presented to the Port and AAG Steering Committees who also independently concurred
with the project team recommendations. These options included: 1) A concept within the
original building footprint, and 2) A concept that expanded the existing building envelope
and footprint. 
Concurrent to the development of these two recommended design concepts for the North
Satellite project, Port staff recognized a need to update the Airport-wide gate demand
analysis as part of the Sustainable Airport Master Plan currently in progress. This was
based in part on changes in domestic and international gate demand and in part by a
request by AAG in May 2013 for an additional five gates on Concourse D and three gates 
at the North Satellite. This analysis was needed to objectively assure that a prudent
approach be taken to justify the need for terminal development based on an Airport-wide
assessment of near-term and long-term need, and not just the growth of a single airline. 
The study evaluated whether a facility expansion to support additional aircraft gates is
warranted, or in lieu of expanded facilities, whether a potential gate shortage could be
managed operationally. The study determined additional gates were needed and how the
gates could be best accommodated. The study incorporated not only anticipated growth in
airport activity (domestic and intercontinental), but also the operational impacts on gate
availability due to:

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 14, 2014 
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AAG's sole tenancy of the North Satellite and its request for an additional five 
mainline gate positions beyond those originally planned as part of NorthSTAR. 
Additional  gates  needed  to  accommodate  American  Airlines/US  Airways,
Southwest/Air Tran, and United/Continental 
Large scale concurrent construction projects of the NorthSTAR and International
Arrivals Facility (IAF) Programs that will temporarily close gates on Concourse A,
the South Satellite, and the North Satellite 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 that: 
There are significant challenges posed by near-term dynamic gate demand and
construction impacts over the next five to seven years. 
Sufficient additional capacity could not be created through operational measures. 
An additional five contact gates beyond the three contact gates included in the
NorthSTAR program are needed to satisfy both the near-term constraints on gate
availability and anticipated gate demand. 
The North Satellite is the most viable location to add terminal area for additional
gates without impacting other Airport facilities. 
A North Satellite expansion not only meets AAG operational needs with a total of 20
North Satellite gates, but also provides a capacity buffer between the NorthSTAR
Program and the contemplated future North Satellite expansion for up to a total of 30
or more gates. 
A larger facility more directly contributes to AAG's vision of a "frictionless"
passenger experience and better meets its vision of an improved "curb-to-seat" level
of service. 
On October 17, 2013, AAG executive leadership provided written concurrence to
renovate and expand the North Satellite to accommodate 20 contact gate positions, based
on the findings of the Airport-wide Gating Analysis and the recommended options for
renovating the North Satellite. 
On January 14, 2014, staff briefed the Commission on the Airport-Wide Gate Analysis 
and provided an overview of the recommendation to expand the North Satellite.
Subsequently, staff has conducted additional briefings of the Commission regarding the
airport-wide  gate  demand  and  capacity  limitations  that  have  reinforced  the
recommendation to expand the North Satellite and add the additional five gates. In July
2014, the Port received Airline Majority-In-Interest ballot approval for the expansion of
the North Satellite as described in the synopsis above. 
Final North Satellite architectural concept, building massing, floor plans, added vertical
circulation and potential baggage system: 
The North Satellite project team collaboratively determined the best approach to the
terminal's interior functional arrangement, scale, and massing in relationship to the

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 14, 2014 
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Airport's built environment. The team focused on developing an intuitive layout that
maximizes the efficiency of the available floor area, responds to AAG technology
enhancements in gate operations, and incorporates airport design trends that integrate
concessions and holdrooms to enhance customer experience and increase non-airline
revenue. The proposed design enables future expansion beyond the current recommended
20 gate positions. These objectives are reflected in the North Satellite's following design
elements: 
A  unifying  single  circulation path  passing through a series of concession and
holdroom areas that can be easily extended into a future expansion and that can be
expressed in the terminal's outward appearance. 
A building envelope that expresses this arrangement in a compelling and iconic
fashion seen by passengers arriving by aircraft, light rail, or vehicles. 
Integrated technology to "untether" passengers from the gate area, to reduce anxiety
or fear of missing a flight or announcement, and to encourage terminal exploration. 
Features  throughout the facility to foster passenger engagement in  productive,
informative and revenue generating opportunities. 
Interior and exterior architecture that evokes images of movement and travel while
expressing the progressive cultural environment of the Pacific Northwest through
building  forms,  lighting,  and  functional  interests  that  are  cost  effective,
environmentally friendly, and within budget. 
Provide adequate bagwell level space and circulation for baggage equipment and
vehicles within the expansion area that accommodates the potential expansion of the
pier-sort baggage handling system to be determined at a later date. 
Scope Additions: 
The 30% design of the North Satellite project began in late February with two weeks of
design charrettes. Progress continues on the 30% design with a goal to obtain AAG
concurrence on the 30% design by October 2014, as required within the LOU. Since the
start  of  30%  design  a  number  of  potential  scope  additions  have  been  either  been
identified and requested by AAG or collaboratively decided by Port and AAG staff to be
evaluated. As a result, beyond the recommended North Satellite expansion, the North
Satellite renovation also includes recent scope additions, some of which have been
evaluated and jointly agreed upon by the Port and AAG based on the positive impact on
passenger experience, operational benefit to the Port and AAG or to better accommodate
maintaining operations during  construction, and some which have yet to be fully
evaluated and may be added at a later date. These include: 
1.  The potential to expand the baggage pier sort system within the expanded satellite to
support the 20 contact gate capacity and to better accommodate operations during
construction. 
2.  The jointly agreed-to addition of vertical circulation and apron-level vestibules to
accommodate passenger loading and unloading from the rear (i.e. aft) doors of gated
aircraft.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 14, 2014 
Page 5 of 9 
While there is the potential for North Satellite baggage handling system to be expanded at
a later date, a final recommendation to do so has not been vetted by the Port and AAG. If
jointly agreed to, staff will return to the Commission to seek authorization for the
additional scope. 
Vertical circulation addition and apron level hold rooms for aft door passenger loading
have been added to the project based on the analysis that it will create an additional
aircraft parking position (a 21st non-contact "gate") without the added cost of a passenger
loading bridge, as well as facilitate aircraft operations for both regional and mainline
aircraft at the north end of the satellite. This will have a net positive impact on airportwide
gate use efficiency and capacity. In addition, these apron level hold rooms would
also serve as hold rooms for busing operations to the main terminal should train service
to the satellite be disrupted due to a long duration failure. 
Level of Service (LOS) for holdrooms, concessions, circulation and restrooms in the
expanded satellite: 
LOS modeling was performed on the various design alternatives to assure that functional
areas of an expanded North Satellite were appropriately sized for projected passenger
loads. The approach used International Air Transport Association modeling industry
standards to quantitatively evaluate North Satellite holdrooms, restrooms, amenities,
circulation, and concession areas. The model used forecasted opening day (2020) gated
flight schedules through 2025 for passenger loads on a typical peak passenger designday.
LOS modeling results are expressed as "A through F," with "A" representing an
excellent level of comfort, little or no congestion, and best concession revenue per
passenger ratio, and "F" being severely congested and an unacceptable level of comfort. 
It is appropriate for a new terminal facility to meet at least an LOS "B" at opening day,
given that flight schedules and passenger loads will increase over time. 
Without expansion, the North Satellite would achieve LOS "D" through "F" on opening
day, with substantial congestion occurring in holdrooms, undersized concessions, and
wait times in restrooms. With expansion in the recommended modular configuration,
where holdrooms are consolidated between service and concession nodes, the LOS
achieved will be between LOS "A" and "B" on opening day. This is acceptable given the
fact that the expansion is intended to support not only an opening day passenger load, but
also future passenger load demands beyond 2025. 
Recommendation to use General Contractor / Construction Manager (GCCM) alternative
contracting methodology: 
As a certified public body per RCW 39.10.340, the Port of Seattle is authorized to utilize
the General Contractor/Construction Manager procedure for public works projects where
at least one of the following is met:

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 14, 2014 
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1.  Implementation of the project involves complex scheduling, phasing, or coordination. 
The North Satellite is a 24-hour, 7-day-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. 
2.  The project involves construction at an occupied facility that must continue to operate
during construction. 
The North Satellite will remain occupied during construction, with construction
activities occurring in and around terminal operations and occupied areas. As
such,  detailed  construction  planning  will  be  required  to  assure  safe  and
unobstructed airport operations as the facility is expanded and systems installed
and upgraded. 
3.  The involvement of the general contractor/construction manager during the design
stage is critical to the success of the project. 
The GCCM 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  for  GC  and  subcontractor  collaboration  on
constructability, value engineering identification, construction phasing and early
work and provide recommendations on scope decisions 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 North Satellite is a 40-year-old facility that 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.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 14, 2014 
Page 7 of 9 
GC/CM Mechanical and Electrical Subcontractor Selection: 
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. 
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 as
compared to the traditional Design-Bid-Build procurement approach. 
FINANCIAL IMPLICATIONS 
The cost to expand the North Satellite that adds 8 additional gates will increase the North
Satellite Renovation Project estimated budget by $191,323,143. The original budget of
$199,300,000 included adding three new gates. The original budget was later increased
by approved transfers from other approved capital construction projects in the amount of
$14,909,801 for the addition of biometric access control doors, two elevator and eight
escalators, a new freight elevator and grease interceptor for a revised total estimated cost
of $214,209,801 inclusive of an estimated $5,800,000 in expense costs for Regulated
Material Management (RMM). This results in a new total estimated project cost for North
Satellite of $405,532,944. These estimates are compared and detailed in the following
table: 
Previous Budget      This Request         Total Project 
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 
Budget/Authorization Summary      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         $20,717,800                 $0       $20,717,800

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 14, 2014 
Page 8 of 9 
Total  Authorizations -   Incl.  this 
$53,714,800          $200,000       $53,914,800 
Request 
Remaining Budget to be Authorized    $346,018,144        $5,600,000     $351,618,144 
On July 29, 2014, Port staff intends to seek Commission approval and authorization for
the increased scope and budget to expand the North Satellite expansion, authorized
additional design funds, solicit outside services to support the expansion and construction
and to use the alternative construction contracting methodology GC/CM. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Proceed with Original Scope: Even though the North Satellite 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 North Satellite 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. This is not the recommended alternative. 
Expand Elsewhere: 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 impacts to
adjacent facilities and roadways. This is not the recommended alternative. 
North Satellite Expansion (Recommended Option): Increase the size of the North
Satellite by adding nine additional 26-foot wide structural bays to the northwest end of
the  existing  building  (approximately  181,000  Sq.  Ft.  added  building  space)  to
accommodate eight additional contact gates (beyond the current 12) that would provide
Alaska  Airlines  capacity  to  meet  long-term  demand  and  remain  operationally
consolidated beyond 2025. This expansion also gains one remote gate position and is
within the Airport's current master plan and can be done without significant impacts to
adjacent concourse operations. This expansion will also accommodate a future expansion
of the North Satellite to up to a total of 30 or more additional gates.  This is the
recommended alternative. 
ATTACHMENTS TO THIS BRIEFING 
Attachment A: Renovation and Expansion PowerPoint

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 14, 2014 
Page 9 of 9 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
April 16, 2014  Seattle-Tacoma International Airport Capital Program - Briefing 
January 14, 2014  NorthSTAR Program status update and initial North Satellite
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 North Satellite
Refurbish Baggage System Project; and (2) authorize the use of Port crews. 
June 25, 2013 NorthSTAR Program status update. 
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
North Satellite Renovation and NSTS Lobbies project. 
June 26, 2012  The Commission received a briefing on the status of the Airline
Realignment Program and budget restructuring in association with the NorthSTAR
Program. 
April 10, 2012  Authorizations for the North Sea-Tac Airport Renovations program
for:  1)  preliminary  project  funding;  2)  execution  of  consulting  contracts  for
design/construction support services and project management services; and 3) use of
Port crews and consultants to conduct regulated materials management surveys and
field support services for preliminary project planning tasks.