PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6a 
ACTION ITEM 
Date of Meeting     January 6, 2015 
DATE:    December 29, 2014 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Michael Ehl, Director Airport Operations 
Wayne Grotheer, Director Aviation Project Management Group 
SUBJECT:  North Satellite Renovation and Expansion Project (CIP #C800556) 
Seattle-Tacoma International Airport 
Amount of This Request:         $5,000,000      Source of Airport Development 
Funds:  Fund and Future Bond
Est. Total North Satellite        $407,282,944 
Proceeds 
Renovation Project Cost: 
Est. Total NorthSTAR Program   $515,000,000 
Cost: 
Est. State and Local Taxes:       $27,935,600 
ACTION REQUESTED 
Request Port Commission authorization for the Chief Executive Officer to  (1) authorize 
$5,000,000 for preconstruction services for a total authorized amount of $55,464,800; 
(2) execute a General Contractor/Construction Manager (GC/CM) contract for preconstruction
services in an amount not to exceed $5,000,000 including Washington State Sales Tax; and (3)
transfer design scope, budget, and authorization of $1,750,000 from the North Satellite STS
station roof replacement project (C800609) to the North Satellite Renovation and Expansion
Project (C800556). 
SYNOPSIS 
The North Satellite (NSAT) Renovation and Expansion Project, (Project Budget: $407,282,944) 
is the largest project of the North Sea-Tac Airport Renovation (NorthSTAR) Program (Program
Budget: $515,000,000). The program is a collaboration between the Port and Alaska Air Group
(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 Satellite Transit System (STS) loop. 
On August 5, 2014, the Commission approved expanding the NSAT to provide eight 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 and 
approved use of the GC/CM contracting procurement procedure for construction contracting.

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 29, 2014 
Page 2 of 9 
Since then, the 30 percent NSAT renovation and expansion design has been completed, and the 
procurement to select a GC/CM in compliance with RCW Chapter 39.10  Alternative Public
Works Contracting Procedures  was conducted. This memo describes the solicitation process
used, requests authorization to enter into the GC/CM contract and authorizes work associated
with preconstruction services. The Port will return to the Commission in 2015 and 2016 to
request budget authorization for early work subcontractor bid packages and the total construction
cost after negotiation of the Maximum Allowable Construction Cost (MACC) respectively. 
BACKGROUND 
There are significant construction and operational risks posed by a project of this magnitude and
complexity within an operating airfield. Therefo re, in June 2014, the Port Aviation Project
Management Group, Engineering Construction Management, and Central Procurement Office
staff began acquisition planning to evaluate whether an alternative public works contracting
procedure such as GC/CM would mitigate these risks when compared to a typical design-bidbuild
(DBB) process for the NSAT expansion. As a result of this evaluation, staff concluded that 
although there are costs associated with preconstruction services, overall, the GC/CM would
facilitate greater contractor collaboration with the design team. This would benefit design
aspects of constructability, value engineering, construction phasing, and the identification and
development of early work packages to advance key components of preparatory construction
work - all in advance of design completion. This early participation by the GC/CM, as part of
preconstruction services, would inform and result in a more cost efficient design prior to bidding 
of subcontract packages. This in turn would r educe the potential for change orders resulting
from the operational complexity and construction constraints inherent with this expansion scope
in an operating airfield environment. The GC/CM would, in effect, become part of the design
process, providing important feedback in identifying conflicts between design disciplines for
equipment, plumbing, heating and ventilation systems with the building structure and with each
other, subcontract bid packaging, and construction sequencing. 
With Commission approval on August 5 to proceed with construction procurement using the
GC/CM methodology, Port staff began development of a solicitation for GC/CM services
including mechanical and electrical subcontractor procurement. Unlike a DBB contract, which is
awarded to the bidder submitting the lowest responsible and responsive bid, the award of a
GC/CM contract is based on both qualifications and price. The process for this procurement
included the following components: 
1.  A written proposal from each GC/CM team responding to the solicitation, identifying the
team's experience, approach to the project, budget and schedule management techniques, and
commitments to small business participation. 
2.  Interviews  The proposing GC/CM teams were short-listed based on a scored evaluation of
the written proposals and then invited as finalists to an interview. The interview was
evaluated based on how well the team communicates, collaborates, problem solves, identifies
achievable solutions to project-based scenarios.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 29, 2014 
Page 3 of 9 
3.  Preconstruction Services Proposal   The GC/CM team finalists  submitted  a proposal
outlining their approach and cost to provide preconstruction services. 
4.  Final Price Proposal  The GC/CM team finalists submit a price proposal for the GC/CM fee 
percentage and a fixed amount for specified general conditions. 
On September 10, the Port received four proposals in response to the GC/CM solicitation, of
which three were shortlisted. Interviews were conducted the week of October 24, followed by
Preconstruction Services proposal submittals on November 14, 2014. On December 10, the Port
received the final price proposals. The Port is now intending to award the GC/CM contract for
the North Satellite Renovation and Expansion Project at Seattle-Tacoma International Airport 
based on these final submittals.
PROJECT JUSTIFICATION AND DETAILS 
Use of the GC/CM public works procedure for the North Satellite Renovation and North Satellite
Station Lobbies Project is based on RCW 39.10.340 criteria in which the Port of Seattle, as a
public body, is authorized to utilize GC/CM for public works projects where at least one of the
following is met: 
1.  Implementation of the project involves complex scheduling, phasing, or coordination. 
The North Satellite is a 24-hour, 7-day-per-week complex operating terminal located
within and surrounded by a restricted and secured airport operating area. The renovation
and expansion of this facility will require multiple construction phases, airline and tenant
coordination. 
2.  The project involves construction at an occupied facility that must continue to operate during
construction. 
The North Satellite will remain occupied during construction, with construction activities
occurring in and around terminal operations and occupied areas. As such, detailed
construction planning will be required to assure safe and unobstructed airport operations
as the facility is expanded and systems installed and upgraded. 
3.  The involvement of the general contractor/construction manager during the design stage is
critical to the success of the project. 
The GC/CM involvement during the design stage is critical to developing an appropriate
design approach to construction and assisting in the development of early construction
packages before the design is fully complete. Design stage engagement will allow for GC
and subcontractor collaboration on constructability, value engineering identification,
construction phasing and early work and to provide recommendations on scope decisions
to keep costs in line with approved budgets. Early review of drawings and specifications

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 29, 2014 
Page 4 of 9 
will also identify more cost efficient design detailing prior to bidding and performing
work, and reduce the potential for change orders. 
4.  The project encompasses a complex or technical work environment. 
The North Satellite is a 40-year-old facility that requires substantial updating, installation,
and coordination of sustainable, complex building systems. Construction activities will be
undertaken within a highly congested and technically challenging operating environment.
Advance involvement with the contractor in identifying and applying the appropriate
means and methods of construction within this environment is critical to the success of
this project. 
5.  Mechanical     Contractor/Construction    Manager    (MC/CM)     and    Electrical 
Contractor/Construction Manager (EC/CM) selection: 
The project encompasses a complex technical work environment. The Port has included
MC/CM and EC/CM subcontractor procurements as part of this GC/CM alternative
contracting procedure. These key subcontractors are selected based on qualifications and
hired by the GC/CM early to participate in the preconstruction phase. The benefit of
including MC/CM and EC/CM contractors lies in the same level of advance participation
and involvement as afforded by the GC/CM, but focused on the mechanical and electrical
design disciplines. By participating in the GC/CM, these trades will allow the Port to
leverage this subcontractor expertise to streamline the utility and infrastructure
coordination and reduce potential design conflicts and associated risks. 
The project will add approximately 210,000 square feet to the existing NSAT terminal building, 
re-grade and replace significant areas of surrounding apron area to meet current National Fire
Protection Association code requirements, and modify aircraft taxiway lighting. The extent of
the work is significant and technically challenging. Early participation and input by the GC/CM
into the design of this facility expansion will significantly reduce the risk of cost changes and
schedule overruns when compared to the traditional DBB procurement approach.
Project Objectives 
Extend the length of NSAT by approximately two hundred forty feet to improve
customer service and accommodate additional aircraft and passengers 
Seismically strengthen NSAT and expand the existing infrastructure 
Balance and integrate NSAT functional areas and requirements (concessions, holdrooms,
amenities, airline operations and airline services) through a renovation and expansion of
the NSAT's terminal area to achieve acceptable levels of service 
Align near term and forecasted airport-wide gate use and capacity by providing a total of
20 contact gates at NSAT 
Optimize gate door contact points, loading bridges and aircraft parking positions,
including fuel hydrants and other support utilities 
Accommodate the future expansion of NSAT and minimize impacts to operations when
constructed

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 29, 2014 
Page 5 of 9 
Meet or exceed current sustainability goals with potential Leadership in Environmental
and Energy Design (LEED) certification 
Create a "frictionless" and stress-free passenger experience within NSAT 
Create an exciting and attractive facility integrating holdrooms, diverse amenities and
numerous concessions 
Maintain and promote a Northwest sense of place through the design of architectural
finishes and connected technologies 
Scope of Work 
This request includes the following design elements at the NSAT and, as noted below, certain
elements at Concourse C and the Main Terminal: 
Renovation of concourse level finishes, structure, and amenities 
Expansion of the NSAT STS, baggage and concourse levels 
Addition of 8 new NSAT aircraft gates with passenger loading bridges to be provided by
AAG (for a total of 20) 
Seismic reinforcement 
Addition of an Alaska Airlines premium traveler lounge (Alaska Board Room) 
NSAT Train System lobby enhancements construction (including the NSAT, Concourse
C and Main Terminal stations) 
Expansion, renewal and replacement of mechanical, electrical, plumbing, vertical
transportation, and communication systems 
Aircraft taxilane changes around the NSAT 
Significant sustainability features and components 
Addition of vertical circulation (escalators/elevators) and ramp-level vestibules to
facilitate passenger loading and unloading 
Reconfiguration and replacement of aircraft taxiway lighting and a significant amount of
apron concrete panels in and around the NSAT aircraft movement areas 
Schedule 
GC/CM preconstruction services and construction of early work packages would occur before
NSAT design completion. This is reflected in the following schedule: 
GC/CM Selection                             4th Quarter 2014 
Authorize Preconstruction Services                     1st Quarter 2015 
Authorize Advance Work Packages                   3rd Quarter 2015 
Design Completion                             3rd Quarter 2016 
Authorize Construction                             3rd Quarter 2016 
Construction Complete                            3rd Quarter 2020

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 29, 2014 
Page 6 of 9 
FINANCIAL IMPLICATIONS 
Project Breakdown: 
Previous Budget    This Budget Request    Total Project Budget 
Construction Phase      $316,006,600         $1,108,000        $317,114,600 
RMM/ERL           $5,800,000            $0        $5,800,000 
Design Phase           $55,895,744          $537,000         $56,432,744 
State & Local Taxes       $27,830,600           $105,000          $27,935,600 
Total                $405,532,944         $1,750,000         $407,282,944 

Authorizations: 
Capital         Expense        Total Project 
Original Budget                   $194,300,000      $5,000,000   $199,300,000 
Prior adjustments to Budget          $205,432,944       $800,000    $206,232,944 
Current Budget                  $399,732,944     $5,800,000   $405,532,944 
Proposed Budget Transfer             $1,750,000           $0     $1,750,000 
Revised Project Budget             $401,482,944      $5,800,000   $407,282,944 
Previous Authorizations              $50,464,800       $200,000    $50,664,800 
Current Request for Authorizations       $5,000,000           $0     $5,000,000 
Total  Authorizations -  Incl.  This
$55,464,800      $200,000    $55,664,800 
Request 
Remaining Budget to be Authorized    $346,018,144     $5,600,000   $351,618,144 
Budget Status and Source of Funds 
This project was included in the 2015 - 2019 capital budget and plan of finance with a budget of
$399.7 million.  The proposed transfer of $1.75 million from the NSAT STS station roof
replacement project (C800609) will bring the total capital cost to $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

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 29, 2014 
Page 7 of 9 
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. 
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        $407 million 
Business Unit (BU)          Terminal 
Effect on business performance  NOI after depreciation will increase 
IRR/NPV             N/A 
CPE Impact             Estimated $1.27 in 2020 

The long-term funding plan will likely include the use of PFCs to pay a portion of the revenue
bond debt service, thus reducing the costs to be recovered through terminal rents. This could
significantly reduce the future CPE impacts of this project. 
Annual operating and maintenance costs will be analyzed during the completion of the final
project definition notebook. 
STRATEGIC OBJECTIVES: 
This project promotes the Port's business goals to "Ensure Airport and Seaport Vitality" and "Be
a Catalyst for Regional Transportation Solutions." 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 near-term expansion of airport capacity. 
TRIPLE BOTTOM LINE 
This project will increase the long-term ability of the Airport to serve a growing number of
passengers and airlines. Long-term vitality of the Airport benefits the regional economy and
nearby communities. The sustainable aspects of this project will benefit the local environment. 
Small Business Participation 
The project managers will collaborate with the Office of Social Responsibility to maximize small

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 29, 2014 
Page 8 of 9 
business participation opportunities including, but not limited to Small Contractors and Suppliers
(SCS) participation in accordance with the Small Business Resolution 3618. 
Environmental Responsibility 
This project will incorporate environmental elements that are currently being analyzed. These
elements, or environmental performance criteria, aim to reduce energy and water consumption
and minimize lifecycle costs of the NSAT. As these elements are evaluated, they will be
incorporated into the project definition and design of the project. The pursuit of the United States
Green Building Council's Leadership in Energy and Environmental (LEED) certification is also
being evaluated. 
Community Benefits 
This project improves operations, building safety, and customer service at what will be the
primary location for the Airport's largest airline tenant. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Revert to Design-Bid-Build (DBB) Procurement (Not Recommended):  As previously
outlined, in instances where significant operational complexity and technical requirements exists,
there is increased risk to schedule and construction changes/claims with DBB. There is no
contractor involvement in the design development and no opportunities to include the contractor
in any value engineering for design simplifications, constructability analysis or schedule
improvements. With multiple stakeholders (airlines, concessions and other airport tenants) there
is more risk, given the complexity of this project and overlapping priorities and an inability to
engage the contractor in advance, for coordination issues resulting in contractor delay claims.
Execute  a GCCM contract  (Recommended):   The GC/CM approach offers the most
opportunity to address potential design issues or deficiencies prior to final agreement on MACC, 
provides cost benefits in performing early work, and allows for earlier knowledge of overall
project costs to assure any required scope changes are designed within budget. As previously
stated, although preconstruction services costs are part of GC/CM procurement, these costs are
included and within the current budget and expected to be offset by savings resulting from
GC/CM input as part of the design process. 
ATTACHMENTS TO THIS REQUEST 
NorthSTAR Program Overview Slide 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
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.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
December 29, 2014 
Page 9 of 9 
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. 
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.