PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
5e
Date of Meeting
January 25, 2011
DATE: January 18, 2011
TO: Tay Yoshitani, Chief Executive Officer
FROM: Wayne Grotheer, Director, Aviation Project Management
Mike Ehl, Director, Airport Operations
SUBJECT: Additional South Satellite Gate Lobby Space (CIP #C800466)
Amount of This Request: $414,000 Source of Funds: Airport Development Fund
State and Local Taxes Paid: $15,580
Total Estimated Project Cost: $1,257,000
ACTION REQUESTED:
Request Port Commission authorization for the Chief Executive Office to authorize both design
services and the use of Port crews in support of the Additional South Satellite Gate Lobby Space
Project at Seattle-Tacoma International Airport (Airport). This authorization is for $414,000 of a
total estimated project cost of $1,257,000.
SYNOPSIS:
The purpose of this project is to provide additional lobby space to serve departing international
aircraft in the west end of the South Satellite. The Delta/Northwest merger combined with peak
operation of other international flight departures has overtaxed the west end of the South Satellite
resulting in disruptions to operations due to severe overcrowding at peak times. The west end
holdroom area is used by international carriers such as Asiana Airlines, Korean Air, Hainan
Airlines, EVA, British Airways, Icelandair, Lufthansa and Air France. This project includes the
demolition of glass partitions and restrooms, relocation of gate podiums, and installation of new
flooring, ceilings and infrastructure. Providing additional gate lobby space would help alleviate
overcrowding for passengers and provide a more comfortable experience for them prior to
boarding for a long international flight. Design will be accomplished by a firm selected via an
advertisement approved on November 2, 2010, and removal of regulated materials, partitions and
miscellaneous other work will be performed by Port Crews.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
January 18, 2011
Page 2 of 5
BACKGROUND:
The west end of the South Satellite consists of five international aircraft gates with adjacent
holdrooms and passenger check-in facilities. These gates/holdrooms were configured in the
early 1990s with moveable glass partitions that could be closed to create “in-transit” lounges for
international passengers arriving at Seattle but intending to clear customs at their next
destination. In-transit facilities have become unnecessary as all arriving international passengers
are required to clear customs at their first stop in the United States. The Delta/Northwest merger
combined with the peak operation of international flight departures has overtaxed the west end of
the South Satellite resulting in disruptions to operations due to severe overcrowding at peak
times.
PROJECT JUSTIFICATION:
Today the South Satellite, and in particular the west end (gates S-10 to S-16), is very crowded.
The consolidation of Delta/Northwest’s operations, coupled with continued growth of
international service, is exceeding the ability of the South Satellite to adequately serve both
airlines and their passengers. Customer service challenges exist particularly in the west end
where existing gate hold rooms are limited by partitions and a restroom. Providing additional
gate lobby space by removing the glass partitions and demolishing the restroom would alleviate
capacity problems and help provide the level of comfort passengers expect prior to boarding for
a long international flight.
Project Objectives:
Adds approximately 3,100 square feet of useable additional passenger gate lobby space, at
Gates S10, S11, S12, S15 and S16.
Improve airline operations by placing gate podiums closer to the doors.
PROJECT SCOPE OF WORK AND SCHEDULE:
Scope of Work: This project will modify the existing use of Gates S10, S11, S12, S15 and S16
(there are no S13 and S14) in order to minimize disruptions to operation and passenger use due
to severe overcrowding at peak times. This project will demolish the glass partitions, demolish
underutilized restrooms, relocate gate podiums, modify and upgrade existing HVAC, electrical, plumbing,
telecommunications and other elements; and ceiling, lighting and floor finishes to create an updated
appearance in the satellite. Regulated materials will require abatement in some locations. Port
Construction Services (PCS) will perform work in conjunction with small works contractors and issue
small works contracts in support of the additional South Satellite Gate Lobby Space at the Airport.
Schedule:
Removal of Glass Partitions by PCS – Completion February 2011
Contract for Design March 2011
Design – Completion June 2011
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
January 18, 2011
Page 3 of 5
Request Commission Authorization to Advertise for Bid July 2011
Bid/Award September 2011
Construction - Completion February 2012
FINANCIAL IMPLICATIONS:
Budget/Authorization Summary:
Original Budget
$1,257,000
Budget Increase
0
Budget Transfers
0
Revised Budget
$1,257,000
Previous Authorizations
0
Current request for Authorization
$414,000
Total Authorizations, including this request
$414,000
Remaining Budget to be Authorized
$843,000
Project Cost Breakdown:
Construction Costs
$148,420
Sales Tax
$15,580
Outside Professional Services
$200,000
Port Costs
$50,000
Total
$414,000
Budget Status and Source of Funds:
The budgeted cost for this scope of work was included in the 2011-2015 capital budget and plan
of finance as a business plan prospective project under CIP # C800412, South Satellite
Concessions Upgrade Project. This scope of work (and budget) was transferred to a new CIP,
C800466. The funding source will be the Airport Development Fund.
Financial Analysis and Summary:
CIP Category
Revenue/Capacity Growth
Project Type
Business Expansion
Risk adjusted Discount rate
N/A
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
January 18, 2011
Page 4 of 5
Key risk factors
N/A
Project cost for analysis
$1,257,000
Business Unit (BU)
Terminal
Effect on business performance
Increase NOI
IRR/NPV
N/A
CPE Impact
Less than $.01, but no change compared to
business plan forecast.
ENVIRONMENT AND SUSTAINABILITY:
The principles of LEED commercial interior standards will be applied to the selection of new
materials, with a focus on lighting.
STRATEGIC OBJECTIVES:
This project supports the Port’s strategy to “Ensure Airport and Seaport Vitality” by optimizing
available public space, at an airport gate holdroom area, via a relatively low investment of funds.
BUSINESS PLAN OBJECTIVES:
This supports an objective to attract and keep additional international air service into Seattle and
the northwest region. The west end of the South Satellite holdroom area is used by international
carriers such as; Asiana Airlines, Korean Air, Hainan Airlines, EVA, British Airways, Icelandair,
Lufthansa and Air France. With the increase in activity by these carriers as well as Delta, this
project will help create a more comfortable and operationally efficient holdroom environment.
TRIPLE BOTTOM LINE SUMMARY:
This work supports international flights that help drive our local economy and to diversify our
community. Energy efficiency will be taken into account during design to benefit the
environment.
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS:
Alternative 1: Demolish the glass partitions and restrooms, relocate gate podiums, and install
new flooring, ceilings and infrastructure. This will provide 3,100 square feet of additional gate
lobby for the west end of the South Satellite. This is the recommended solution.
Alternative 2: Complete either the removal of the glass partitions or the restroom in an effort to
add space but not both. Either of these options would add additional gate lobby but neither alone
would open the space to allow better passenger flow. This is not the recommended alternative.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
January 18, 2011
Page 5 of 5
Alternative 3: Extend the SSAT building envelope to the west to create additional floor space.
This action would be premature in light of the terminal development planning activities currently
underway. This is not the recommended alternative.
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST:
None.
PREVIOUS COMMISSION ACTION:
On November 2, 2010, the Commission authorized the execution of an IDIQ professional
services contract for design services in the amount of $400,000 in support of anticipated capital
improvement projects related to South Satellite Concessions and Gate Lobby Projects at Seattle-
Tacoma International Airport (Airport). No funding was associated with this authorization.
