COMMISSION 
AGENDA MEMORANDUM                Item No.       4e 
ACTION ITEM                   Date of Meeting    November 8, 2016 
DATE:    October 31, 2016 
TO:     Ted Fick, Chief Executive Officer 
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:          $3,450,000 
Total estimated project cost:       $3,600,000 
ACTION REQUESTED 
Request Commission authorization for 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. 
EXECUTIVE SUMMARY 
The South Satellite (SSAT) was built in 1970 and expanded in 1984. Recent structural analyses
have shown that the existing building design 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 South
Satellite (SSAT) structure per current building codes. The purpose of this project is to provide
improvements to those portions of the building that are currently overloaded so that the SSAT 
structural framing will be adequate when loaded to design dead and live load limits. The SSAT is
currently heavily utilized with significant passenger queuing and these loads are approaching
design load limits. Given the status of the facility Port staff has combined the design and
construction authorization requests in order to promptly complete the improvements. 
JUSTIFICATION 
This project addresses the existing structural overload condition in the SSAT building. This
project contributes to the Port's Century Agenda (CA) strategic objective to advance this region
as a leading tourism destination and business gateway. The fifteen international gates at the
SSAT are a fundamental part of the Port's goals to double the number of international flights
and destinations, and meet the region's air transportation needs at Sea-Tac Airport for the next
25 years. Not only will this project contribute to the CA objectives, but will also contribute to
the Port's small business and minority and woman-owned business enterprise utilizationgoals 
within the scopes of work. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 4e                       Page 2 of 5 
Meeting Date: November 8, 2016 
DETAILS 
The project will address existing dead and live load structural overload conditions in the SSAT
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. 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) since this work needs to be coordinated with
the Airport Dining and Retail tenant construction effort. No significant operational impacts are
anticipated to occur during the construction of this project since the majority of the work will
occur in non-public space and will occur at night. Two significant risks were identified for this
project: the existing construction market, and the need to relocate unknown utilities and
systems to support the work. The total estimated project cost is estimated at $3,600,000 and
includes additional project contingency to address these risks. 
Scope of Work 
The scope of work includes beam to column strengthening at 26 locations, column
strengthening at 12 locations, and haunch to column strengthening at four locations. A number
of the existing columns currently support other systems that will need to be relocated to
support the construction effort. These include: Wi-Fi antennas, conveyer controls, tug charging
stations, door optical sensors, 400Hz electrical power conduits, mechanical piping, and other 
electrical and communication conduits. Asbestos abatement will also be required in support of
the work. 
Schedule 
The activities outlined below are for the major works construction contract. 
Activity 
Construction start                    2017 Quarter 4 
Construction complete               2018 Quarter 3 
Cost Breakdown                         This Request       Total Project 
Design                                   $628,000          $778,000 
Construction                              $2,822,000         $2,822,000 
Total                                      $3,450,000          $3,600,000 




Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 4e                       Page 3 of 5 
Meeting Date: November 8, 2016 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Under this alternative the structural improvements are deferred and included in
the upcoming SSAT modernization project. This project includes the modernization and
expansion of the SSAT and is anticipated to be complete by 2027. 
Cost Implications: $0, Defers investment 
Pros: 
(1)   Defers the costs of the structural improvements. 
(2)   Eliminates the risk that these improvements would be demolished by the upcoming 
SSAT modernization project. 
Cons: 
(1) The SSAT building would continue to experience additional building degradation and
damage (overload condition) until the SSAT modernization project is complete. Under
this alternative there is considerable risk that there could be significant structural
damage, including failure, given current building usage. 
(2) The SSAT building would be out of compliance with current building code requirements.
Remodeling projects that impact building design and live load requirements would be
on-hold until the SSAT modernization project is complete. 
(3) Lateral load requirements would not be addressed until the modernization project is
complete. The SSAT building would remain at risk for additional damage should wind or
seismic events occur. 
This is not the recommended alternative. 
Alternative 2  Under this alternative the scope of the structural improvements is expanded to
address dead and live load as well as lateral load requirements. This work is anticipated to be
complete by 2020. 
Cost Implications: $30 million to $45 million 
Pros: 
(1) With the completion of the work, the SSAT building degradation and damage from
continued normal use would be minimized. 
(2) The SSAT building would be in compliance with current building code requirements and
could support remodeling efforts. 
(3) Lateral load requirements would be addressed and would minimize the potential for
additional damage should wind or seismic events occur. 
Cons: 
(1) This alternative requires the investment of $30-$45 million in the current five year CIP. 
(2) There is significant risk that these improvements would be demolished by the upcoming 
SSAT modernization project. 
This is not the recommended alternative. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 4e                       Page 4 of 5 
Meeting Date: November 8, 2016 
Alternative 3  Under this alternative the structural improvements are completed that address
existing dead and live load requirements. This work is anticipated to be complete by 2018. 
Cost Implications: $3.6 million 
Pros: 
(1) There is limited risk that these improvements would be demolished by the upcoming 
SSAT modernization project. 
(2) With the completion of the work, the SSAT building degradation and damage from
continued normal use would be minimized. 
(3) The SSAT building would be in compliance with current (dead and live load) building
code requirements and could support limited remodeling efforts. 
Cons: 
(1) This alternative requires the investment of $3.6 million. 
(2) Lateral load requirements would not be addressed until the SSAT modernization project
is complete. The SSAT building would remain at risk for additional damage should wind
or seismic events occur. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary          Capital      Expense        Total 
COST ESTIMATE 
Original estimate                      $1,000,000          $0    $1,000,000 
Cost increase                         $1,880,000      $720,000    $2,600,000 
Revised estimate                     $2,880,000     $720,000    $3,600,000 
AUTHORIZATION 
Previous authorizations                   $150,000          $0      $150,000 
Current request for authorization           $2,730,000     $720,000    $3,450,000 
Total authorizations, including this request     $2,880,000      $720,000    $3,600,000 
Remaining amount to be authorized             $0         $0         $0 
Annual Budget Status and Source of Funds 
The SSAT Structural Improvements project (CIP #C800818) was included in the 2016-2020
capital budget and plan of finance as a business plan perspective project with a total capital
budget of $1,000,000. The cost increase is predominantly attributed to the addition of the
system relocation costs, asbestos abatement expense costs, and construction market risk.
Additional capital budget of $1,880,000 was transferred from the Aeronautical Allowance (CIP
#C800753), resulting in no net change to the capital budget. The additional expense budget of
$720,000 is for asbestos abatement costs. This will be accounted for as an environmental

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 4e                       Page 5 of 5 
Meeting Date: November 8, 2016 
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         $3,600,000 
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                $0.02 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 
Airport Dining and Retail is conducting competitive solicitations 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). This work is planned to be completed
by PCS and coordinated with the planned tenant build-out of these areas. These units are
anticipated to be open by May 2018. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None 






Template revised September 22, 2016.