PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4d 
ACTION ITEM 
Date of Meeting     March 24, 2015 
DATE:    March 17, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Dave Soike, Director, Aviation Facilities and Capital Program 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  North Satellite Renovation & North Satellite Transit Station Lobbies Project (CIP
#C800556) 
Amount of This Request:        $5,300,000   Source of Funds:   Airport Development
Fund, Passenger
Est. Total Project Cost:        $421,682,944 
Facility Charges,
Future Revenue
Bonds 
Est. State and Local Taxes:      $28,859,400 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to take the following actions
related to the North Satellite (NSAT) Renovation & North Satellite Transit Station (STS)
Lobbies Project at the Seattle-Tacoma International Airport: 
(1) Authorization for $3,400,000 to prepare the existing NSAT at four locations to
accommodate temporary passenger loading bridges (PLBs); 
(2) Authorization for $600,000 to construct temporary construction offices for Port and 
General Contractor/Construction Manager staff; 
(3) Authorization for $700,000 to complete construction of Satellite Transit Station
(STS) North Loop Dynamic Display system including the procurement of hardware,
software, post-implementation maintenance contracts, and vendor services; 
(4) Authorization for $600,000 expense funding for regulated materials management
(RMM), including abatement for the Alaska Air Group (AAG) NSAT tenant project;
and 
(5) Approval to use Port crew labor and small works contractors to complete early
project work.

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 17, 2014 
Page 2 of 10 
This request, for authorization of $5,300,000, is within the current total project budget of
$421,682,944, and is not requesting any additional increase in budget. 
SYNOPSIS 
Key strategies to ensure the successful completion of the NSAT project as early as possible are
to identify and take advantage of opportunities that benefit the overall schedule.  These
opportunities would expedite critical components of work, better accommodate the GC/CM 
getting a quick start  on constructing major elements of the building expansion, reduce 
operational impacts during construction, and provide improved customer service information and
wayfinding, once major construction begins. To meet this objective, Port staff has identified four
opportunities for early in-house preparatory construction work to be completed as separate Port
projects in advance of the major GC/CM construction effort.
The early construction work projects include: 
(1) The relocation of three PLBs, creating associated gate lobby renovations, and connecting
aircraft utilities (PC Air, 400 Hz, potable water) 
(2) Development of on-site construction offices 
(3) Installation of a North Loop STS dynamic display system 
(4) Abatement of regulated materials management (RMM) associated with these three early 
projects above and to support AAG in constructing their temporary VIP club room as a
tenant improvement project this summer
BACKGROUND 
The NSAT project is the largest component of the North Sea-Tac Airport Renovation
(NorthSTAR) Program. The program is a collaboration between the Port and AAG to create and
promote a user-friendly "curb-to-seat" passenger experience through the integration of facility
improvements, technology, and airline services on Concourses C, D, the North Main Terminal,
North Satellite, and the North STS loop. 
On August 5, 2014, the Commission approved expanding the NSAT to provide 8 additional
contact gates beyond the existing 12 contact gates, for a total of 20 gates. The Commission also 
authorized a corresponding increase to the project's budget to fund this expansion scope, as well
as the use of the General Contractor/Construction Manager (GCCM) alternative contracting
procurement procedure for construction. On January 6, 2015, the Commission approved the
selection and award of the GC/CM contract. 
The current schedule for completing construction of the NSAT project has shifted to the fall of
2020. Any opportunity to improve on this schedule benefits the Port, AAG, and its passengers. 
Port staff, working with AAG and the GC/CM, has determined project elements 1 and 2 listed
above will better facilitate the overall NSAT completion schedule and maintain the maximum

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 17, 2014 
Page 3 of 10 
number of active gates during construction. The STS Dynamic Display will inform passengers
during potentially disruptive major construction phases when a train will be arriving at each
station to ease anxiety. Abatement of RMM supports the first three projects and supports AAG in 
constructing an interim Boardroom VIP club providing passengers with a highly valued amenity 
prior to completion of the new, permanent VIP club facility. Staff recommends completing the
proposed project elements using PCS crews and small works contracts in lieu of using the
GC/CM. This will maximize opportunities to advance the NSAT schedule, better accommodate
the GC/CM starting early major work in the expansion portion of the building and minimize
impacts to current airline operations. The Port, AAG, and the GC/CM have mutually agreed that
these four opportunities should be constructed early by the Port under separate work packages to
benefit the NSAT project. 
To maximize operational gates for AAG during construction, three locations have been
identified where temporary gates, with PLBs, aircraft utilities (PC Air, 400 Hz, potable
water), holdrooms and aircraft parking, can be installed. Given the schedule when the
GC/CM, currently under contract for preconstructions services, will begin major
construction, relocating three PLBs with associated gate holdrooms and aircraft utilities
now creates significant advantages. This minimizes the loss of important active gates
during the early phase of construction, lessening the impact to AAG's flight operations. 
The temporary gate facilities will be created on the existing NSAT building with the
PLBs relocated away from the north end of the satellite where the GC/CM will first begin
on the building expansion.
Given the size of the GC/CM and Port staff needed to manage, support, monitor and
implement a major construction project such as the NSAT and to assure continuous onsite
direction, coordination, supervision and safety of all NSAT construction activities,
sufficient office space is required as close as possible to the project site. Existing office
space is extremely limited elsewhere in the terminal and does not exist in the NSAT and
must be created. This project will create offices for construction staff to be used for the
duration of the construction project in unoccupied existing spaces located on the STS
level of the NSAT and or to expand existing construction offices on the ramp level
Concourse C. The allows staff to be closer to the construction versus remotely located
either at the Logistics site or at the Water Tower Engineering Offices that would require
significant travel time not conducive to supporting the project. There will be no available
space on the airfield directly adjacent to the NSAT to place temporary modular facilities 
as an option. The construction offices will be the on-site field offices during all major 
construction phases, for both Port staff and the GC/CM, for the duration of the entire
project.
Maintaining and improving customer service is a key objective of the NorthSTAR
program. Given AAG's increasing passenger volumes using the NSAT via the North
Loop of the Satellite Transit System (STS) the Port and AAG have determined that the
installation of a dynamic display system, at each of the three station locations in advance

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 17, 2014 
Page 4 of 10 
of major GC/CM construction phases,  will  improve passenger way-finding, reduce 
anxiety, and decrease passenger uncertainty during construction. 
AAG's Temporary Boardroom club will provide AAG's passengers on-site VIP room
amenities as a significant customer service amenity until the permanent Boardroom
facilities are completed. RMM in the ceiling area must be abated at this location for this
tenant construction project to proceed.
PROJECT JUSTIFICATION AND DETAILS 
Early delivery of certain elements of the NSAT project will assist in maintaining high levels of
customer service and as close to current operations as possible during construction. These
important objectives of the program are manifested in the four recommended early work
projects. Delivery of these projects will use Port forces and have significant schedule benefits to
the GC/CM contractor by not diverting their time and attention away from preconstruction work 
during planning the major construction activities. 
The relocation of the three PLB's will maximize operational gates with aircraft utilities and
passenger boarding facilities available to support AAG's growing flight operations at the NSAT 
during construction. Without these three temporary gates no other alternate gates are available
for AAG to use without major operational impacts to AAG or other airport gates. By relocating
these gates, the Port can provide continued airline gate operations outside of the immediate
construction area, reducing negative impacts to the GC/CM contractor, the overall construction
schedule and AAG's flight schedules. 
On-site temporary construction offices will support the on-going complex construction activities
to ensure that they are conducted in a safe and efficient manner. These facilities are needed
because existing airport construction offices are too small, too remote and are non-existent at the
NSAT to support the staff size required for a project as large and comprehensive as theNSAT 
renovation. To successfully facilitate a large-scale project, close collaboration and co-location of
the owner and contractor on site produces the best overall result in project delivery. Because of
extremely limited space adjacent to the NSAT construction site and because it is within a
complex airfield operating environment, the placement of construction trailers on the airfield for
this project is not feasible. 
Having a dynamic display system at STS station doors on the North Loop of the STS, will
provide public confidence that the NSAT is "open for business" during construction. The
existing static white lettering, placed near each train door location at each station that indicates 
"The next train will arrive in two minutes," is easily overlooked by the traveling public. The 
addition of dynamic signage to identify how soon a train is arriving will improve the passenger's
experience and although staff recommends this system be installed as an early element of the
overall renovation project, it will permanently remain after completion of the NorthSTAR
Program.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 17, 2014 
Page 5 of 10 
All four early projects will require RMM abatement of varying degrees. Abating RMM at the
proposed temporary AAG Boardroom VIP location enables that project and creates areas clear of
asbestos that will not have to be abated later during the main renovation project. 
Project Objectives 
The four early work packages outlined in this authorization request will: 1) maintain the existing
12 contact gates critical to AAG operations during each phase of construction, 2) prepare and
accommodate Port and GC/CM staff for NSAT terminal construction, and 3) enhance the
passenger way-finding experience within the STS North Loop stations. 
Scope of Work 
Relocate three Passenger Loading Bridges 
PLB foundations, removal and relocation. 
Electrical, mechanical and controls hook-ups and modifications. 
Aircraft utility (PC Air, 400Hz, potable water) infrastructure and connections to PLB's. 
Gate holdroom modifications including demolition, interior and remodel/renovation
work, curtain wall and door installations. 
Building lighting, signage and HVAC modifications. 
Reconfiguration and apron re-striping of aircraft parking positions. 
Construction Offices 
Renovate unleased areas in the North Satellite.
Perform miscellaneous demolition, construct walls, doors, ceiling, finishes, power,
lighting, plumbing, communication systems, and provide office furniture.
The offices will be constructed primarily at the North Satellite. 
Existing construction offices on Concourse C will also be expanded. 
STS Dynamic Display 
Install 8-46 inch display monitors within each station on the STS North loop. 
Install electrical and communications wiring infrastructure to support the display system 
and RMM. 
Develop and install software and hardware data interfaces between the existing train
control system and the display system. 
Minimize impacts to existing operations. 
Minimize impacts to the existing station finishes and overall appearance. 
Abatement of RMM 
At the three relocated PLB locations and aircraft utility infrastructure. 
To enable construction of on-site Construction Offices. 
At STS Dynamic Display electrical conduit installation locations. 
Supports construction of the AAG temporary Boardroom VIP club.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 17, 2014 
Page 6 of 10 
Schedule 
The three work packages are separate and at various stages of development and to have complete
and functional in advance of starting the GC/CM construction activities. 
Commission Authorization to begin early construction         QTR 1 2015 
Complete Temporary Gates                        QTR 3 2015 
Complete Construction Offices                       QTR 3 2015 
Complete STS Dynamic Display                     QTR 3 2016 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                     $194,300,000    $5,000,000   $199,300,000 
Previous budget increase               $207,182,944     $800,000   $207,982,944 
Concurrent proposed budget increase        $14,400,000          $0   $421,682,944 
Revised budget                     $415,882,944    $5,800,000   $421,682,944 
Previous Authorizations                $55,464,800     $200,000   $55,664,800 
Current request for authorization         $4,700,000     $600,000    $5,300,000 
Total Authorizations, including this request    $60,164,800      $800,000    $60,964,800 
Remaining budget to be authorized        $355,718,144    $5,000,000   $360,718,144 
Total Estimated Project Cost            $415,882,944    $5,800,000   $421,682,944 
Project Cost Breakdown                         This Request    Total Project 
Budget 
Construction Phase                              $4,850,000    $334,344,600 
Design Phase                                      $0    $58,386,744 
State & Local Taxes (estimated)                        $450,000     $28,951,600 
Total                                          $5,300,000    $421,682,944 
Budget Status and Source of Funds 
This project is included in the 2015  2019 capital budget and plan of finance with a budget of
$401.5 million. The Airport Development Fund (augmented as needed with the issuance of
commercial paper) continues to be the initial source of funds for this project but funding for the
entire project will include Passenger Facility Charge revenues (PFCs) and future bond issues.
The Port anticipates issuing revenue bonds in 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.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 17, 2014 
Page 7 of 10 
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        $422M 
Business Unit (BU)          Terminal 
Effect on business performance  NOI after depreciation will increase 
IRR/NPV             N/A 
CPE Impact             $1.32 in 2021. The actual CPE impact for this project
could be lower depending on the amount of PFCs applied
to construction costs and on revenue bond debt service. 
Lifecycle Cost and Savings 
It is anticipated that there will be a slight increase to the workload of the Aviation Maintenance
department, primarily related to the temporary office spaces, and the STS displays. As the
design of the projects further develops, these costs can be better defined and evaluated. The work
load is not anticipated to be significant, and due to the temporary nature of the offices, no
additional staff resource requirements are anticipated for this scope of work. Because no new
PLB's are added and three existing PLB's are being relocated, there is no impact to the existing
budget for PLB maintenance. There will be an expense increase of $1,200 per month, to support
the construction offices required to support the construction of the overall project. 
STRATEGIES AND OBJECTIVES 
The anticipated growth in domestic and international enplanements will require maintaining
existing gates for all airlines. This project supports the Port's Century Agenda objective of
meeting the region's air transportation needs at Sea-Tac Airport for the next 25 years. This
project also supports the Aviation Division's strategy of anticipating and meeting the needs of
our tenants, passengers, and the region's economy. 
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 nearterm
expansion of airport capacity.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 17, 2014 
Page 8 of 10 
TRIPLE BOTTOM LINE 
Economic Development 
This project will increase the long-term ability of the Airport to serve AAG's future growth. This
project cost effectively meets AAG's needs by upgrading existing systems rather than building
entirely new systems. As our business partner, this allows AAG to expand their operations. 
Environmental Responsibility 
This project demonstrates environmental sustainability by improving existing Port assets to
extend their life and better utilizing existing resources. This project will include energy efficient
equipment, low emitting materials and recycling of equipment, such as PLB's, and other
materials where possible. 
Community Benefits 
Long-term vitality of the Airport benefits the regional economy, the local environment and
nearby communities. 
Small Business Participation 
The Office of Social Responsibility (OSR) will provide support in determining small business
and inclusion participation, as described in Resolution No. 3618. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Maintain status quo. This work would remain within the GC/CM contract as
early work. This is not the recommended alternative. 
Pros: 
All early work constructed as part of the GCCM contract. 
Possible increased opportunities for small, women and minority owned business. 
Cons: 
Creates significant schedule delays, risks shifting completion of the NSAT project later
into 2020 or early 2021. 
Increases project costs caused by potential delays. 
RMM materials are not properly addressed. 
Alternative 2)  Implement Early Work Packages. Port, using crew labor and small works
contracts, constructs these four work packages in advance of the GC/CM construction beginning. 
This is the recommended alternative. 
Pros: 
Creates early customer service and operational benefits. 
Creates possible improvements to the current completion schedule of the NSAT project. 
Eliminates impacts in work and schedule to the GC/CM contractor. 
Work is within the capabilities of existing Port resources. 
RMM work is performed resulting in areas cleaned of asbestos. 
There will also be opportunities for small, women and minority owned businesses.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 17, 2014 
Page 9 of 10 
Cons: 
Certain projects will be managed independently by Port, versus by GC/CM. 
Any delay may impact GC/CM in moving PLB's or having adequate office space.
ATTACHMENTS TO THIS REQUEST 
STS Dynamic Display 
NSAT Aircraft/Gate plan with temporary gate locations 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
March 24, 2015  The Commission authorized (1) $14,400,000 budget for baggage
handling system expansion; (2) $1,954,000 authorization for design; 
March 24, 2015  The Commission authorized (1) entering into a developer agreement
with Puget Sound Energy for design and construction of underground gas infrastructure
and (2) $200,000 reimbursement to PSE. 
January 6, 2015  The Commission authorized (1) $5,000,000 preconstruction services;
(2) execution of a General Contractor/Construction Manager (GC/CM) contract for
preconstruction services; and (3) transfer of scope, $1,750,000 budget and authorization
for STS station roof replacement to the North Satellite Renovation and Expansion
project. 
October 28, 2014  NorthSTAR Program Status Update 
August 5, 2014  Commission authorized an estimated $191,323,143 to expand the
NSAT by 8 additional gates, an additional $15,717,800 for design completion, and use of
the GC/CM alternative public works contracting procedure for NSAT expansion
construction procurement. 
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.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 17, 2014 
Page 10 of 10 
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.