COMMISSION 
AGENDA MEMORANDUM                        Item No.          10e 
ACTION ITEM                            Date of Meeting       April 27, 2021 
DATE:     April 20, 2021 
TO:        Stephen P. Metruck, Executive Director 
FROM:    James Jennings, Director, Aviation Business and Properties 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  North Main Terminal Redevelopment Program  Preliminary Design C801204 

Amount of this request:                       $10,000,000 
Early estimated program cost:              $300M - $400M 

ACTION REQUESTED 
Request Commission authorization for the Executive Director to authorize up to $10 million in
support of the North Main Terminal Redevelopment Program (1) for Alaska Airlines to complete
a Project Definition Document and to progress the overall program design at Seattle-Tacoma
International Airport, (2) fund associated Port soft costs, (3) to execute a Tenant Reimbursement
Agreement with Alaska Airlines, and (4) authorize the execution of a consultant support services 
contract for an estimated value of $16.5M as well as a design services contract for an estimated
value of $4.5 million. 
EXECUTIVE SUMMARY 
Alaska Airlines (Alaska) desires to extensively redevelop existing space at the north end of the 
Main Terminal Ticketing Level (Zones 6 & 7) of the Airport to improve passenger processing, 
security screening throughput, and to elevate the overall passenger experience in these areas.
Seattle-Tacoma International Airport (Airport) supports this proposal, which when complete
would progress the Airport closer to the desired Optimum Level of Service in key functional
service areas; as well as contribute to the Port's strategic objective of " Continuously improve(ing)
the operational efficiency and customer experience at SEA." Portions of this program are intended 
to be  performed by Alaska and memorialized  via a multi-phase Tenant Reimbursement
Agreement (TRA). 
This request is to provide preliminary funding for Alaska for the completion of a Project Definition
Document (PDD), that will further develop the overall design and validate the program's scope,
work limits, cost, and schedule. Additionally, this request includes an option for Alaska to further
progress the overall design to a 30% design milestone, which will inform the overall program 
scope, budget, and schedule. The TRA for construction is not yet finalized as it will be based on

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. __10e__                             Page 2 of 9 
Meeting Date: April 27, 2021 
the 30% design estimate and the cost split between the Port and Alaska will then be memorialized 
in a subsequent TRA, subject to further Commission approval. 
Lastly, this request also seeks authorization for a (1) program-specific consultant contracts for
Project Management,  Project Controls  and  Construction Management support and (2) a
program-specific Design consultant contract. 
JUSTIFICATION 
The Airport Main Terminal, Ticketing Level was constructed in the 1960s, with an expansion on
the north end in the 1980s. The Port has been working to develop an overall main terminal
redevelopment program that will  address many necessary  code upgrades and aesthetic
improvements. This Program is anticipated to be the first step of a much larger program that will
ultimately result in a full refresh of the full main terminal at the Airport. Although we don't expect
the remainder of the Main Terminal to be a carbon copy of what will be done in this Alaska driven
program, the Port will be working to ensure architectural and system integration in future project 
scopes as they are brought forward. One key benefit of Alaska constructing much of this project
scope is Alaska's ability to manage the level of operational impact during the complex
construction phasing required to redevelop this critical area, while still processing passengers. 
This program supports the Port's Century Agenda's strategic goal of "Advancing this region as a
leading tourism destination and business gateway" by: 
Continuously improving the operational efficiency and customer experience at the Airport. 
Strengthening the competitiveness of the Airport in the regional and global marketplace. 
Meet the region's air transportation needs by delivering vital facilities and infrastructure in
a sustainable and cost-effective manner. 
Alaska approached the Port to manage the construction project to renovate the northernmost
two sections of the main terminal building (Zones 6 and 7) that currently house Alaska's ticketing
functions to provide an enhanced passenger experience.
As part of this work, they are requesting to remove the mezzanine section(s) above their ticketing
counters, which necessitates buildout of replacement space to accommodate displaced offices,
as well as update finishes (ceiling, flooring, lighting, etc.) in areas adjacent to their leased
premises to provide a more aesthetically cohesive environment. 
This work will also enable substantial code upgrades to the impacted areas of the Terminal
(sprinklers, smoke control, etc.). This work is all requested by Alaska to be completed by the 
airline itself under a TRA. Port staff is supportive of Alaska performing the majority of the work,



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COMMISSION AGENDA  Action Item No. __10e__                             Page 3 of 9 
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and the Port reimbursing Alaska's reasonable costs, as it puts Alaska in control of managing the
impacts to their operations, which are anticipated to be substantial during construction. 
Integrating the design and construction into the Airport-wide architectural vision,
reflecting the Pacific Northwest sense of place. 
Ensuring the  program  is effectively and efficiently incorporated into airport-wide
systems so that all the "behind the walls" infrastructure meets Port standards and
specifications 
Maintaining operational flexibility in ticketing that supports Airport-wide growth 
Minimizing operational and passenger impact during course of construction 
Endeavoring to take advantage of reduced passenger levels and softer construction
market to create jobs in the local market and assist with the overall economic recovery
in the region 
Alaska managing construction impact to gain efficiencies throughout construction
process to deliver program expediently and at a competitive cost 
Managing to an agreed-upon proposed program scope, schedule and budget as will be
detailed in the completed PDD and via a joint program governance document. 
Alaska and the Port are committed to creating a best-in-class passenger experience at the Airport 
moving towards an optimum level of service in the redeveloped ticket lobby, including an
expanded and streamlined security screening checkpoint, improved passenger processing and
baggage handling capability and leveraging the new and enhanced functionality in Alaska's digital
touchpoints. 
BACKGROUND 
The Port and Alaska have been working collaboratively to develop a program that facilitates: 
Increasing passenger check-in, baggage drop, and security screening capacity while
reducing congestion. 
Accommodating the growth in capacity anticipated by the soon-to-be-completed 20 gate
North Satellite project. 
Aligning the adjoining Security Screening Checkpoint #5 to current TSA standards or
better while providing improved screening lane flexibility and efficiency. 
Leveraging passenger adoption of simple and intuitive mobile and online applications to
streamline the day-of-travel experience. 
Promoting new Airport-wide Architectural Visioning concepts. 
Demonstrating independence from future Airport expansion projects. 
Creating a 'best-in-class' customer experience at SEA. 
Alaska provided the Port with a high-level Basis of Design (BOD) for this program in late July 2020, 
which was reviewed by key Port stakeholders. A revised BOD addressing many Port reviewer
comments was submitted to the Port in mid-December 2020, along with a high-level phasing

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plan/schedule, two high-level cost estimates, and a preliminary structural review of the proposed
work area. 
Despite the work of the BOD, there remains uncertainty regarding the boundaries of the program 
and its interface with existing systems in the terminal. This uncertainty has created an
unacceptable level of scope risk and an associated budget as well as schedule risk. In order to
create more scope, schedule and budget certainty, the Port has requested Alaska's program team 
to complete a PDD that more fully investigates and develops the following: 
The structural, life safety, and utility infrastructure improvements required. 
Tenant relocation plan to include location, size, and concept. 
Strategies to mitigate and/or minimize operational and logistical impacts. 
Interface (scope, schedule and operational impacts) with other upgrade projects in the
Main Terminal that are either already in progress or planned. 
Defining the limits of the proposed scope of work. 
The Port has worked closely with Alaska to develop a path forward on developing the PDD over
the next 4 - 6 months, which should provide enough information to allow the Port and Alaska
teams to decide on the next steps. 
Since this is a short-term program, estimated by Alaska to be completed within 3 years, it is best
to provide the Port's oversight of this program with consultant support instead of FTE's. Further,
the Aviation Project Management Group and Engineering   Construction Management
departments do not have sufficient staff, or consulting resources to support this program and
additional FTEs have not been authorized. The Port Project Representative and the Project
Management, Project Controls, and Construction Management consultants will provide highlevel
program, TRA compliance oversight, and technical support. Specific tasks include: 
1.  Coordinating design reviews. 
2.  Coordinating construction phasing/work package schedule development. 
3.  Coordinating building permit applications. 
4.  Analyzing and making recommendations on reimbursement requests. 
5.  Processing reimbursement requests. 
6.  Serving as single point of contact on technical issues. 
7.  Providing Project Management and Construction Management support and oversight. 
8.  Functioning as the Port's liaison with Alaska's program team for the Port's program
management, design and project delivery teams and represent the Port's operational and
business interests and requirements. 
Diversity in Contracting 
The Port is working with Alaska to establish appropriate Women & Minority Business Enterprise
(WMBE) aspirational goals and incorporate inclusion plan requirements into their solicitations.
The resulting contracts will include the WMBE, Priority Hire, and Apprenticeship commitments 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. __10e__                             Page 5 of 9 
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agreed to by Alaska and will require that they use reporting systems used by the Port to enable
appropriate tracking and monitoring. 
WMBE aspirational goal for the Port consultant procurement is 15%. Aspirational goals for the
design services procurement will be established once the final scope of work has been
established. Alaska has also agreed to enter into a Project Labor Agreement for their construction
procurements. 
DETAILS 
The amount of $10,000,000 being requested in this authorization, is planned to support both 
Port soft costs, as well as be issued in phases under a multi-phase Tenant Reimbursement 
Agreement to Alaska as follows: 
1)  Port staff will negotiate TRA(s) up to $9 million for Alaska to develop the PDD and advance 
the overall program design to approximately 30% completion. 
2)  Up to $1 million is intended to fund participation by Port staff in development of the PDD
and the overall program design. 
3)  Additional authorizations to fund Port and Alaska costs in follow-on phases of the 
program will be requested from the Commission per the schedule developed in the PDD
and agreed upon by the Port-Alaska executive level steering committee. 
The Program Specific Port Program Representative, Project Management, Project Controls and
Construction Management Support procurement: 
Provides additional consultant staffing support for oversight for the portions of the work
being completed by Alaska and for the work that will be completed by the Port. 
Seeking a three-year base contract with one potential one-year extension option. 
The value of this contract is estimated at $15.5 to $16.5 million, depending on the final
scope of work after the PDD is completed. 
If the Port decides not to move forward with the full program after the PDD has been
completed, this contract will not be executed. 
Program Specific Design Services Support: 
Provides design support services for companion work that will be completed by the Port
outside of Alaska's leased areas. The full scope of work that the Port will be completing
will be more fully defined after completion of the PDD. 
Seeking a three-year base contract with one one-year extension option. 
The value of this contract is estimated in the $4 - $4.5 million range, depending on the
final scope of work after the PDD is completed. If the Port decides not to move forward
with the full program after the PDD has been completed, this contract will not be
executed. 


Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. __10e__                             Page 6 of 9 
Meeting Date: April 27, 2021 
Scope of Work 
1)  Renovation of the ticketing level of the Main Terminal in Zones 6 and 7 to include
architectural and structural upgrades, improved lighting, enhanced passenger experience
with added customer service positions, technology, as well as a curbside beautification
element with additional passenger bag drop locations.
2)  Accessibility upgrades on the Baggage Claim level associated with the Promenade
buildout. 
3)  Demolition of portions of the existing mezzanine to create a high-bay configuration. 
4)  Relocate tenants displaced by the demolition of portions of the Mezzanine level to: 
a.  Newly built-out spaces on the currently undeveloped Promenade/Bridge level 
b.  Other available locations on the Mezzanine level 
c.   The first floor of the Parking Garage 
Schedule 
The following is the current high-level schedule for this scope of work: 
Commission authorization for PDD & consultant procurements   2021 Q2 
PDD Start                                                        2021 Q2 
PDD Completion                                            2021 Q3 
Start Consultant Procurements                                  2021 Q2 
Execute Consultant Procurements                              2021 Q3/Q4 
Commission authorization to proceed with full program           2021 Q3 
In-use date                                                         2025 Q2 

Cost Breakdown                                     This Request         Total Program 
Planning/Design                                         $9,000,000                   TBD 
Port/Consultant Staff Support                             $1,000,000                    TBD 
Total                                                        $10,000,000                      TBD 

Project Cost Estimate 
The current budget of $100,000,000 in the CIP is a placeholder only, inserted when there
was no design, and no preliminary concept development. It was understood at the time
that this preliminary budget would increase once additional scoping and design were 
completed. 
Port staff are using a rough order of magnitude estimate range of $300,000,000 to
$400,000,000. 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. __10e__                             Page 7 of 9 
Meeting Date: April 27, 2021 
There are many factors that may affect the final cost estimate and how the cost for the
project will be allocated between the Port and Alaska, including scope changes, project
delivery method, and elements of the agreement with Alaska. 
The final cost estimate will be updated as the TRA(s) are negotiated and amended and
the work to be performed by Alaska, and the cost split between the Port and Alaska is still
being negotiated,  but will  ultimately will be  based on Alaska Airlines  estimated
construction costs. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1    The Port develops  the preliminary design of the North Main Terminal
Redevelopment program alone, including development of the PDD. 
Cost Implications: $2.5 million 
Pros: 
(1) There would be time to further develop the program scope. 
(2) The Port would have greater control over the process. 
(3) This alternative would not require a TRA. 
Cons: 
(1) This alternative would not meet Alaska's schedule goals. 
(2) This alternative would not necessarily include all of Alaska's objectives. 
(3) There is no risk/responsibility sharing for the PDD. 
(4) The PDD costs would need to be expensed by the Port if the decision is made not to move
forward with the program after the PDD is completed. 
(5) Doesn't maximize the opportunity to accelerate program development during low traffic
volume and favorable business climate. 
This is not the recommended alternative. 
Alternative 2  Alaska develops a PDD only, delaying the Port's portion of funding of design funds
to 30% and Alaska then would assume full risk for additional design costs if it chooses to proceed
with design on its own. 
Cost Implications: $2.5 million 
Pros: 
(1) Allows more time to further develop the program scope. 
(2) Allows for greater cost and schedule certainty for the Port and Alaska before committing
to funding additional design. 
(3) Reduces the Port's overall financial risk. 
Cons: 
(1) Would delay the project and therefore not meet Alaska's schedule goals. 
(2) Does not allow for greater refinement of design to better inform program cost and
schedule, requiring additional design before a solid budget is developed. 

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COMMISSION AGENDA  Action Item No. __10e__                             Page 8 of 9 
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(3) Doesn't maximize opportunity to accelerate program during lower traffic volumes and
favorable business climate. 
(4) Does not optimize cost and schedule certainty when compared with other alternatives. 
This is not the recommended alternative. 
Alternative 3  Request Commission authorization for the Executive Director to authorize up to
$10 million in support of the North Main Terminal Redevelopment Program (1) for Alaska Airlines
to complete a Project Definition Document (PDD) and to progress the overall program design at
Seattle-Tacoma International Airport (SEA) to an approximately 30% design milestone, (2) to fund
associated Port soft costs, (3) to execute a Tenant Reimbursement Agreement (TRA) with Alaska
Airlines, (4) authority to execute a consultant support services contract for an estimated value
of $16.5M; authority to execute a design services contract for an estimated value of $4.5 million.
Cost Implications: $10 million 
Pros: 
(1)   Provides adequate resources to progress the design to better align with Alaska's
schedule goals. 
(2)   Allows for the design to progress while the Port and Alaska further refine the business
deal and equitable risk and cost-sharing between the Port and Alaska. 
(3)   Maximizes the opportunity to accelerate program development during low traffic
volume and favorable business climate. 
(4)   Ensures that the proper support resources are in place for the Port if the decision is
made to continue with the full program. 
(5)   The Port has a PDD and a Building Information Model (BIM) that may be useful for future
development projects if the decision is made not to proceed with the full program. 
Cons: 
(1)   Moves at a faster pace than a typical Port project that makes it more challenging to
accommodate the Port design review process. 
(2)   Invests up to $10M before fully committing to the full program. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
The amount of this authorization, if any, that could be considered Expense has not yet been
determined. 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
AUTHORIZATION 
Previous authorizations                            $100,000               $0        $100,000 
Current request for authorization               $10,000,000               $0     $10,000,000 
Total authorizations, including this request       10,100,000               $0     $10,100,000 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. __10e__                             Page 9 of 9 
Meeting Date: April 27, 2021 
Remaining amount to be authorized                   TBD             $0            TBD 
Annual Budget Status and Source of Funds 
Although this program, CIP C801204, was included in the 2021-2025 capital budget and plan of
finance, the current budget of $100,000,000 in the CIP is a placeholder only, inserted when there
was no design, and no preliminary concept development. It was understood at the time that this
budget would increase once additional scoping and design was done and will need to be updated
at the 30% design milestone. 
Financial Analysis and Summary 
Program cost for analysis           TBD 
Business Unit (BU)                  Terminal Building 
Effect on business performance     NOI after depreciation will increase due to inclusion of
(NOI after depreciation)             capital (and operating) costs in airline rate base. 
IRR/NPV (if relevant)                N/A 
CPE Impact                       TBD 
Future Revenues and Expenses (Total cost of ownership) 
It is anticipated that there will be some increased costs to the Aviation Maintenance department
annual operating & maintenance (O&M) costs as a result of this project. This includes but is not
limited to the mechanical and electrical systems, and a slight increase in custodial costs. As the
design develops, these costs can be better defined and evaluated. 
ADDITIONAL BACKGROUND 
The first round of funding for $10,000,000 will be broken out to fund various elements of the
work: 
$2.5 million to complete the PDD, begin developing a BIM, and after the acceptance of
the PDD, begin work on the 30 percent design deliverable. 
Up to $1.0 million will be used for Port staff to support the PDD development and to
procure Program / Project Management consultant support. 
The next $6.5 million can only be released after acceptance of the PDD and will be used
to further advance the design. 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None. 


Template revised June 27, 2019 (Diversity in Contracting).