COMMISSION 
AGENDA MEMORANDUM                Item No.       6a 
ACTION ITEM                   Date of Meeting     August 8, 2017 
DATE:    July 31, 2017 
TO:     Dave Soike, Interim Executive Director 
FROM:   Jeffrey Brown, Director, Aviation Facilities and Capital Programs 
Mike Tasker, Senior Manager, Aviation Facilities and Infrastructure 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  South Satellite Structural Improvements (CIP #C800818) 
Amount of this request:           $550,000 
Total estimated project cost:       $4,150,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to (1) authorize an additional
$550,000  for the South Satellite Structural Improvements project at Seattle-Tacoma
International Airport for a total estimated project cost of $4,150,000, (2) advertise and execute
a major works construction contract, and (3) utilize Port crews to assist with the project. 
EXECUTIVE SUMMARY 
This project will address existing structural overload conditions at the South Satellite (SSAT)
building. The SSAT  was built in 1970 and expanded in 1984. Recent structural analyses have
shown that the existing building dead load (i.e., weight of the built facilities) and live load (i.e.,
weight of the people in the building) exceed the capacity of the existing SSAT structure per
current building codes. The project has experienced some cost growth due to the construction 
market, additional costs to address unknown utilities and systems, and a scope increase to
support another project in the SSAT building. 
JUSTIFICATION 
This project addresses a structural overload condition in the SSAT building as identified by 
current building codes. This project contributes to the Port's Century Agenda strategic objective
to advance this region as a leading tourism destination and business gateway. The fifteen
international gates at the SSAT are fundamental to the Port's goals to double the number of
international flights and destinations and meet the region's air transportation need at Seattle-
Tacoma International Airport (STIA) for the next 25 years. 


Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6a                       Page 2 of 5 
Meeting Date: August 8, 2017 
DETAILS 
The SSAT Structural Improvements project will address the existing dead and live load structural
overload conditions in the SSAT building by completing a number of structural improvements to
columns and beams on the concourse, international corridor, and ramp levels of the building.
The project will not address lateral load (i.e., wind and seismic) structural requirements. 
In November 2016, the Commission authorized a total of $3,600,000 for the design and
construction of the project. At that time, two significant risks were identified and additional
project contingency was included in the estimated project cost for these risks. The two risks
were the existing construction market and the need to relocate unknown utilities and systems
to support the work. 
On August 8, 2017 the Commission will also be requested to authorize the construction of the
South Satellite Heating Venting and Air Conditioning (HVAC) Upgrade project. That project will
replace key components of the SSAT HVAC system including the air handlers and distribution
boxes serving the concourse level. In order to support the construction phasing required to
maintain existing building operations, temporary HVAC units need to be brought in for several
months and placed on the roof of the SSAT building. This additional equipment on the roof will
increase the dead load of the building. The two project teams coordinated on the location of
the units and as a result only one additional column location on the concourse level needs to be
strengthened to support the temporary HVAC units. Given the nature of the construction work
involved, this additional structural upgrade is most efficiently accomplished by this SSAT
Structural Improvements project. 
The estimated project cost has increased by $550,000 to $4,150,000 which is attributed to
three issues: 1) the existing construction market, 2) relocation of unknown utilities and systems
to support the work, and 3) a scope increase. Activity in the construction market continues to
rise and subcontractors to support the work are in limited supply. The market impact has
increased beyond staff expectations and represents 64% of the project cost increase. As the
project team began identifying the unknown utilities and systems to be relocated, it became
apparent that the impacted HVAC systems were more complex than anticipated. These costs
have increased beyond the original identified project contingency and represent 9% of the
project cost increase. The additional column strengthening to support the temporary HVAC
units represents the remaining 27% of the project cost increase. 
Scope of Work 
The scope of work includes beam to column strengthening at 26 locations, column
strengthening at 13 locations, and haunch to column strengthening at four locations.  A
number of other systems will need to be relocated to support the construction effort and
include Wi-Fi antennas, conveyer controls, tug charging stations, door optical sensors, 400Hz
electrical power conduits, mechanical piping, heating and ventilation ductwork, and other
electrical and communication conduits.    Asbestos abatement will also be required in

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. 6a                       Page 3 of 5 
Meeting Date: August 8, 2017 
support of the work. The majority of the work will be completed through a major works
construction contract. The portion of work on the concourse level will be completed by Port
Construction Services (PCS) and small works contracts since this work needs to be coordinated
with the Airport Dining and Retail tenant construction effort. 
In June, Port PM staff, along with the Small Business Group , and the Central Procurement
Office, had conducted an outreach and training effort through PortGen. This early effort was to
maximize small business knowledge and the promotion of those potential opportunities within
the scope of work. Additional outreach efforts will be conducted to continue small business
interest and preparation in anticipation of this project. 
Schedule 
Due to the increase in project costs, the project now requires approval from the airlines
through the majority-in-interest vote. This effort is currently underway and assuming approval
by the airlines, the anticipated schedule is summarized below. 
Activity 
Construction start                    2018 Quarter 1 
Construction complete               2018 Quarter 3 
Cost Breakdown                         This Request       Total Project 
Design                                       $0          $795,000 
Construction                               $550,000         $3,355,000 
Total                                        $550,000          $4,150,000 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary          Capital      Expense        Total 
COST ESTIMATE 
Original estimate                      $1,000,000          $0    $1,000,000 
Previous changes  net                  $1,880,000     $720,000    $2,600,000 
Current change                       $720,000    ($170,000)     $550,000 
Revised estimate                      $3,600,000     $550,000    $4,150,000 
AUTHORIZATION 
Previous authorizations                  $3,050,000      $550,000    $3,600,000 
Current request for authorization             $550,000          $0     $550,000 
Total authorizations, including this request     $3,600,000      $550,000    $4,150,000 
Remaining amount to be authorized              $0          $0          $0 


Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. 6a                       Page 4 of 5 
Meeting Date: August 8, 2017 
Annual Budget Status and Source of Funds 
The SSAT Structural Improvements project (CIP #C800818) was included in the 2017-2021 
capital budget and plan of finance with a total capital budget of $2,880,000. The cost increase is
attributed to continued growth in activity in the construction market, additional costs for the
relocation of unknown utilities and systems, and additional column strengthening scope. 
Additional capital budget of $720,000 was transferred from the Aeronautical Allowance (CIP
#C800753), resulting in no net change to the capital budget. The expense budget savings of
$170,000 is attributed to the reduction in asbestos abatement scope and is considered an
environmental remediation liability. Both the capital and expense portions of this project will
be funded by the Airport Development Fund. 
Financial Analysis and Summary 
Project cost for analysis         $4,150,000 
Business Unit (BU)            Terminal Building 
Effect on business performance   NOI after depreciation will increase 
(NOI after depreciation) 
IRR/NPV (if relevant)           N/A 
CPE Impact                $0.03 in 2018 (RMM) and $0.01 in 2019 
Future Revenues and Expenses (Total cost of ownership) 
No future revenues or expenses are anticipated as a result of the completion of this project. 
ADDITIONAL BACKGROUND 
The SSAT Renovations project is currently exploring alternatives for the complete renovation of
the SSAT building to meet long-range capacity and customer experience goals. The SSAT
Renovation project will also address the lateral load structural requirements since they are
integral to the renovated  building structure.  There is limited risk that the structural
improvements completed by the SSAT Structural Improvements project would be demolished
by this future renovation effort. 
Airport Dining and Retail has completed the competitive solicitation process for units in the
SSAT. This includes unit SS-7 an upscale bar with food, unit SS-2A a gourmet coffee unit, units
SS-2B and SS-2C quick service restaurants, food court seating, and optional food services in the
SSAT. The structural improvements on the concourse level that are the subject of this request
are located within three of the dining units (SS-2A, SS-2B, and SS-2C) and adjacent to the public
restrooms. This work is planned to be completed by PCS and small works contractors and will
be coordinated with the planned tenant build-out of these areas to minimize disruption to
public areas. These structural improvements are anticipated to be complete by second quarter
2018. 


Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. 6a                       Page 5 of 5 
Meeting Date: August 8, 2017 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
November 8, 2016  The Commission authorized the Chief Executive Officer to (1) prepare 
design and construction bid documents for the South Satellite Structural Improvements project
at Seattle-Tacoma International Airport, (2) advertise and execute a major works construction
contract, and (3) utilize Port crews for an estimated $3,450,000 















Template revised September 22, 2016; format updates October 19, 2016.