COMMISSION 
AGENDA MEMORANDUM                        Item No.          8f 
ACTION ITEM                            Date of Meeting        July 26, 2022 

DATE:     July 15, 2022 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Eileen Francisco, Director Aviation Project Management 
Dawn Hunter, Director of Commercial Management 
SUBJECT:  Concourse    Expansion    Early    Work    Package    Budget    Authorization 
(CIP# C800845) 
Amount of this request:              $71,000,000 
Estimated   Project  Budget      $340,000,000 -
Range:                            $420,000,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to (1) authorize $71,000,000 of
the program  budget for  enabling  construction work and  early work packages for the C
Concourse Expansion  program, including  (2) execute an amendment  in the amount of
$2,500,000 to Service Agreement P-00320163 for additional costs associated with accelerating
design packages and added sustainability scope, for a new contract total of $26,500,000. 
EXECUTIVE SUMMARY 
The C Concourse Building Expansion (CCE) program was created to address shortfalls in Airport
Dining and Retail (ADR) capacity, public amenities, office space, and premium lounge space.
The project is located at the intersection of Concourses C and D and will add four floors to the
existing three floor structure.
At this time, the project is programmed to provide additional food and beverage space, retail
space, and lounge space.  The public amenities being provided include new restrooms, a
meditation room, a sensory room, nursing suites, and an “outdoor” public lookout. 
The project team has accelerated the design of the structural steel package, the vertical
circulation package, and the exterior wall design and detailing to facilitate an earlier overall
completion of the CCE program. Accelerating these packages allows for known long lead time
materials to be purchased and fabricated while the design of the building is still progressing.
Early buy out of these packages will also reduce schedule risk and cost uncertainty due to
supply chain issues and inflation. 

Template revised January 10, 2019.

             COMMISSION AGENDA – Action Item No. _8f___                               Page 2 of 6 
Meeting Date: July 26, 2022 
Program Budget Update 
The original project was estimated at $340 million. Since that original budget was established, 
project cost risk has increased and the estimates for the project have grown. The main drivers
of the increased estimates are additional sustainability scope, baggage transfer line impacts,
and contractor estimates reflecting escalation due to COVID and the current geopolitical
situation. 
To manage costs and scope the project has taken several steps.  Between concept and 15%
design the Port, the contractor, and the design team met every two weeks to value engineer
and right size the project scope.  That effort led to a $20 million reduction to the concept
estimate. That right-sized scope and project programming was used to develop a 30% design.
The 30% design was again estimated, and the estimates were reviewed and reconciled with the
Port, the designer, and the contractor. 
The design is currently moving from 30% development to 60% development and the project
team holds weekly Target Value Design meetings. At these meetings the project team meets to
review specific cost savings ideas. Cost savings that do not violate Port design standards or the
project program are incorporated into the design. 
As the design develops, the project teams will continue to assess potential savings in real time
with the design team and the contractor. While this will not prevent the higher cost of
delivering the project, it will be a tool to control the cost increases and ensure that the scope of
work is appropriate to the needs of SEA. 
Estimate Trends 
Sustainability Initiatives: $10.4M 
Non-Discretionary Scope Changes: $24M 
Escalation and Scope Definition: $32.6M 
Current Estimate Range: $340M – $420M 
The available Program Contingency is $14.5M. The project team is assessing how much of this
contingency can be allocated to the existing budget. The team is working to balance known
risks against the available funds. 
JUSTIFICATION 
Early work packages allow the project to accelerate specific scopes of work that will benefit the
project schedule. Staff worked with the design team and the General Contractor Construction
Manager (GCCM) to identify scopes of work that could be accelerated without causing
excessive risk to the project.  The three major scopes of work that this request represents are
the structural steel, vertical circulation, and the exterior curtain wall. 

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

             COMMISSION AGENDA – Action Item No. _8f___                               Page 3 of 6 
Meeting Date: July 26, 2022 
The structural steel is a long lead item. The steel package must be bid and awarded followed by
a product submittal and shop drawing process. By starting to bid this package in September of
2022, the project can lock in raw steel costs and start steel erection in earnest when the project
starts full construction in April of 2023. The administrative work and order time will happen
concurrently with the remainder of the building design. 
There are two advantages to accelerating the vertical circulation design and construction
package. The first advantage is that the design requirements for elevators change based on
manufacturer. By identifying the manufacturer early through a competitive bid process, the
design documents can be finalized to meet the specific manufacturer's specifications. This
makes the design more reliable and less likely to require changes during construction. Like
structural steel, elevators and their supporting equipment have long lead times. The second
advantage is that getting at least one of the long lead time freight elevators up and running
early in construction will help support construction activities because materials will more easily
be moved from level to level. 
The advantages of accelerating the exterior wall are very similar to the structural steel package.
The contractor can start the submittal, engineering, and shop drawing process. These activities
will happen concurrent to the remainder of the design and not after it is complete. The project
will also be able to purchase long lead materials and set that cost early. 
Diversity in Contracting 
WMBE outreach efforts through local community organizations and publications have begun in
support of CCE construction efforts. This includes targeted WMBE and small business pre-bid
job walkthroughs for better understanding of project efforts, prior to upcoming bids.
Current WMBE contractual commitment: 
1.  Designer: 12% 
2.  GCCM: 12% (The GCCM goal may be modified as design progresses and the scopes of
work are further developed.) 
3.  Program Management and Construction Management:  20% 
4.  Commissioning Agent: 15% 
The project is anticipated to provide approximately 28% in Airport Construction Disadvantage
Business Enterprise (ACDBE) post-construction ADR opportunities. 



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

             COMMISSION AGENDA – Action Item No. _8f___                               Page 4 of 6 
Meeting Date: July 26, 2022 
DETAILS 
These additional early work packages will include 
(1)   Structural steel 
(2)   Vertical circulation 
(3)   Exterior wall 
(4)   Additional opportunities identified by the project team 
Schedule 
Commission design authorization               2020 Quarter 2 
Design start                                       2021 Quarter 1 
Commission construction authorization early    2021 Quarter 2 
work packages 
Construction start early work packages           2022 Quarter 3 
Commission construction authorization         2022 Quarter 4 
In-use date                                       2027 Quarter 2 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1 – No early work packages 
Cost Implications: Cost will be further impacted by inflation and material supply issues 
Pros: 
(1)   No risk that early work scope will not be fully coordinated with remainder of the
design package. 
Cons: 
(1)   Project will be completed later. 
(2)   Cost to execute contracts will be subject to inflation 
(3)   Material supply chain issues could impact project schedule 
This is not the recommended alternative. 
Alternative 2 – Execute early work packages 
Cost Implications: Materials will be locked in at the 2022 cost 
Pros: 
(1)   Price certainty for the project on accelerated packages 
(2)   Accelerates construction completion and opening of the building 
Cons: 
(1)   Remainder of the design is not complete and could impact early work packages 
This is the recommended alternative. 

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

             COMMISSION AGENDA – Action Item No. _8f___                               Page 5 of 6 
Meeting Date: July 26, 2022 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary            Capital        Expense                     Total 
COST ESTIMATE
Original estimate                           $331,776,000     $8,224,000             $340,000,000 
Transfer to Baggage Optimization
($15,500,000)              $0             ($15,500,000) 
Program 
Revised Estimate Range                                                           $340,000,000 - 
TBD           TBD 
$420,000,000 
AUTHORIZATION
Previous authorizations                     $86,174,000     $7,926,000              $94,100,000 
Current request for authorization
$71,000,000             $0               $71,000,000 
(Concourse C Expansion)
Total Auth, including this request
$157,174,000     $7,926,000             $165,100,000 
(Concourse C Expansion) 
Remaining amount to be authorized                                             $174,900,000 - 
TBD            TBD 
(Concourse C Expansion)                                                            $254,900,000 

Annual Budget Status and Source of Funds 
This project is included in the 2022-2026 capital budget and plan of finance with a budget of
$340,000,000. The capital budget decrease of $8,224,000 would be transferred to the
Aeronautical Allowance CIP C800753. The expense budget would be included in the Aviation
Division’s annual operating expense budget. The funding sources will include the Airport
Development Fund and future revenue bonds. This project was approved by airlines through a
Majority-In-Interest (MII) vote in April 2021. 
Financial Analysis and Summary 
Project cost for analysis              $340,000,000* 
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)                PV (40 years) for non-aero $44.5 million 
CPE Impact                       $0.68 in 2028 
* Financial implication for this project has not changed, but the $15.5 million is being
transferred to the Baggage Optimization project for enabling work to relocate baggage handling
system transfer lines in conflict with the CCE project. Authorization and transfer for this work
was authorized by the Commission on April 26, 2022. 

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

             COMMISSION AGENDA – Action Item No. _8f___                               Page 6 of 6 
Meeting Date: July 26, 2022 

Future Revenues and Expenses (Total cost of ownership) 
As presented on April 27, 2021, when completed the project will generate incremental nonairline
revenues of $12 million by 2028 and over $15 million by 2031. Aeronautical revenues
will also increase as the allocated operating and capital costs (debt service) are included in
airline terminal rate base. 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
•    April 26, 2022 – C concourse Expansion Budget Authorization and Transfer 
•    April 12, 2022 - C Concourse Expansion Briefing 
•    March 8, 2022 – Authorization to execute a Service Agreement for a third-party
Commissioning Agent 
•    April   27,   2021   –   C1   Building   Project   Additional   Design   and   General
Contractor/Construction Manager Early Work Authorization – Special Inspection and
Testing Authorization 
•    May 26, 2020 – C1 Building Project Design and General Contractor/Construction
Manager Authorization 
•    March 10, 2020 – C1 Building Project Briefing and Introduction 
•    June 26, 2018 – C1 Building Project Authorization for Planning Funds 









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