PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      7b 
STAFF BRIEFING 
Date of Meeting     January 14, 2014 
DATE:    January 8, 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 Terminal Expansion 
NorthSTAR Program  Seattle-Tacoma International Airport 
SYNOPSIS 
The goals and objectives of the North Sea-Tac Airport Terminal Renovation Program
(NorthSTAR) include  consolidating  Alaska Air Group (AAG) operations within
Concourse C, Concourse D, the North Satellite and the renovated north end terminal
facilities of the Main Terminal. The renovation also includes the three Satellite Transit
System (STS) stations at these locations. NorthSTAR is a collaborative effort between 
the Port and AAG, which intends to create and promote a user-friendly airport by
achieving AAG's vision of enhancing the passenger "curb-to-seat" experience through
the integration of facility renovations, improvements, and airline services. This program's
scope was initially defined by a conceptual study prepared by AAG and its consultant. 
The Port and AAG have been refining the scope of this study and incorporating recent
activity projections in an effort to assure NorthSTAR meets both the Port's and AAG's
long-term facility enhancement and capacity needs. 
An analysis of the projected increases in Sea-Tac Airport's activity has led to the
collaborative recommendation to expand the North Satellite and increase North Satellite
gate capacity to 20 gates. 
BACKGROUND 
The 15% conceptual design of the North Satellite Renovation began in January 2013 and 
resulted in the development of 16 initial concept options for renovating the North
Satellite that included adding three additional gates. These concepts were evaluated based
on an assessment of how well each option met the functional and operational
requirements for holdrooms, concessions, amenities, circulation, and terminal layout 
efficiency.  Options that  did not adequately respond to these requirements were
eliminated, and the team continued work on four original options. These new expansion
options were added as a result of concerns that the amount of area needed for holdrooms,
concessions and amenities could not be met or balanced within the  dimensional

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
January 8, 2014 
Page 2 of 5 
limitations of the existing building envelope or on one floor level. In October 2013, these 
four options were presented, reviewed and evaluated by both the Port and AAG staff. Of
these, two options were recommended, presented, and both the executive level Port and
AAG Steering Committees concurred with staff's recommendations independently. 
These two recommended options included: 1) A concept within the original building
envelope, and 2) A concept that expanded the existing building area or footprint. 
Concurrent to the development of these two recommended design concepts for the North
Satellite, Port staff recognized a need to update the airport-wide gate demand analysis. 
This was based on changes in domestic and international gate demand and as a result of a 
request by AAG in May 2013 for an additional five gates on Concourse D beyond its five
existing gates at Concourse D, and the proposed addition of three gate positions 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 gatesis 
warranted, or in lieu of expanded facilities, whether a potential gate shortage could be
managed operationally. The study determined where additional gates were needed and
how the gates could be best accommodated. The study incorporated not only anticipated
growth in airport activity (domestic and international), but also the concurrent operational
impacts on gate availability due to: 
AAG's sole tenancy of the North Satellite and 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 mergers on contiguous gate locations
(Note: While mergers may consolidate the total number of daily flights, additional
gates may be needed to accommodate coincident flight schedules and differing
aircraft types  wide vs. narrow body during peak times in contiguous gate locations). 
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 2018. 
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. 
Additional capacity could not be created through operational measures. 
An additional five gates beyond the three gates included in the NorthSTAR program 
are  needed to satisfy both the near-term constraints on gate availability and
anticipated gate demand.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
January 8, 2014 
Page 3 of 5 
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 30 gates in the
current airport master plan. 
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 aircraft gate positions, based
on the findings of the Airport-wide Gating Analysis and the recommended options for
renovating the North Satellite. In January 2014, staff will be submitting a Majority-In-
Interest ballot seeking Airline approval of the expansion of the North Satellite. After the
votes are received staff will return to the Commission to request authorization of
additional design funds. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Do Nothing (Original Scope): Even though the North Satellite would be renovated per
the original project  scope, not expanding (do nothing)  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 constrain airline growth airport-wide and result in a deteriorated level
of service. 
Expand Elsewhere: Provide additional gate capacity at Concourses A, B, C, D or at the
South Satellite. Expansion to the South Satellite or Concourse A would require costly
relocations of existing cargo and aircraft maintenance facilities (a sunk cost and more
expensive than expansion of the North Satellite). Concourses B, C, and D cannot be
expanded due to site and operational constraints and costly impacts to adjacent terminal
areas and roadways. 
North Satellite Expansion (Recommended Option): Add up to nine additional 26-foot
structural bays to the northwest end of the existing North Satellite to accommodate the
addition of up to eight additional gates that would provide Alaska Airlines capacity to
meet long-term demand and remain operationally consolidated through 2025. This
expansion is within the current Airport 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 a 30-gate capacity as identified in the master plan.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
January 8, 2014 
Page 4 of 5 
FINANCIAL IMPLICATIONS 
An expansion of the North Satellite will increase the North Satellite Renovation Project
cost estimate by approximately $175,401,600. The previous scope included the addition
of three new passenger loading bridges, transfer of biometric access control doors, two
elevator and eight escalators, a new NSDF freight elevator and grease interceptor for a 
total estimated cost of $213,946,357 inclusive of $5,800,000 expense for Regulated
Material Management (RMM). The Rough Order of Magnitude estimated cost to expand
the North Satellite for a total of 20 gates (eight new gate positions) is $389,348,000. 
These estimates are compared and detailed in the following table: 
Project Breakdown      Previous Budget    Expansion Budget   Total Project 
Construction           $155,036,936        $135,775,064     $290,812,000 
Design & Const. Support            $18,620,000         $9,562,000     $28,182,000
Project Management            $3,531,020         $9,150,880     $12,681,900
Permitting              $3,100,000           $126,000       $3,226,000
RMM - Expense           $5,800,000             $0     $5,800,000
Port Soft Costs              $9,951,401         $19,014,099      $28,965,500
Undefined Cost - TBD            $17,907,000         $1,773,600     $19,680,600
Total                        $213,946,357       $175,401,643     $389,348,000
Budget/Authorization Summary    Capital        Expense     Total Project 
Previous Budget                    $194,100,000     $5,000,000     $216,546,306 
Budget Transfers                     $11,352,357      $800,000      $12,152,357 
Added Project Budget                  $2,694,000           $0       $2,694,000 
Current Budget Increase                $175,401,643           $0     $175,401,643 
Revised Project Budget (Cap. & Exp.)       $383,548,000     $5,800,000     $389,348,000 
Previous Authorizations                 $32,933,556      $200,000      $33,133,556 
Current Request for Authorizations          $20,717,800           $0      $20,717,800 
Total Authorizations - Incl. This Request      $53,651,356      $200,000      $53,851,356 
Remaining Budget to be Authorized      $327,202,644    $5,600,000     $335,496,644 
Port staff intend to seek Commission concurrence on the increased scope and
authorization for the increased budget associated with the recommended expansion at the
January 28, 2014, Commission meeting. In addition to the expansion, the Port and AAG
are evaluating a number of stakeholder-proposed scope additions to the North Satellite 
Expansion. These scope additions have not yet been fully evaluated or estimated, nor
have they been jointly agreed upon by the Port and AAG. They will be evaluated
individually and proposed for inclusion only after justification through a cost benefit
analysis based on operational need. 
The Port and AAG are working to evaluate and make recommendations on these
additions in order to finalize the expansion scope. Both the current and North Satellite
Expansion cost estimates are based on the conceptual design work completed to date and
will require refinement as the North Satellite Renovation design moves forward.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
January 8, 2014 
Page 5 of 5 

ATTACHMENTS TO THIS BRIEFING 
Attachment A: Renovation and Expansion PowerPoint 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
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.