Item No. Date of Meeting 7a_supp January 24, 2017 Sea-Tac International Airport NorthSTAR Program Fourth Quarter 2016 Program and North Satellite Project Update 1 NorthSTAR Program The North Sea-Tac Airport Renovation (NorthSTAR) Program is being planned and delivered in collaboration with Alaska Airlines (AS) to better serve passengers and improve operational efficiency. This program consists of modernizing and expanding the north satellite, refurbishing the north satellite baggage system, and new exterior walkways, stairs and elevators at Concourse C. The baggage system and Concourse C exterior walkway projects are complete. The north main terminal project is currently on hold. Purpose: • Improve the travel experience from airport drop-off to flight departure and working environment for employees Outcome: • Facility modernization; seismic reinforcement; enhanced traveler amenities; new contact gates; long-term energy savings; and operational efficiencies Mission Statement 2 Approved Program: $607 million NorthSTAR Program Overall Budget $600 $500 $538.1 $538.1 Original Budget - As established at inception Revised Budget - As approved by Commission Authorized - As authorized by Commission Millions Expended - Thru reporting period end Forecast - Anticipated Cost at Completion $400 $300 $200 $5.0 $13.9 $18.4 $0.0 $14.5 $16.0 $100 $Program Mgmt North Satellite Concourse C FINAL Main Terminal TRANSFER Baggage Handling NorthSTAR Sys Expense Projects FINAL Management Reserve Q4 2016-Main Terminal Impvmts transferred from NorthSTAR 3 NorthSTAR Program Commission Action Apr 2012 Authorized NSTAR consultant contracts design/const. supt. 2012 March 2013 Program Briefing 2013 2014 2015 2016 2017 Jan 2014 Initial NSAT Expansion & Program briefing Jan 2014 Program Briefing Jan 2015 Authorized NSAT Pre-Const Svcs & execution of GC/CM contract Apr 2013 Authorized PLA covering NSTAR major construction projects Jun 2012 Program Briefing May 2013 Authorized execution of NSTAR CM and Commissioning Svcs Q1 Program Briefing Q1 Program Briefing Mar 2015 Authorize Design NSAT Baggage Expansion May 2016 Authorize Additional NSAT/NSTAR Scope & Soft Cost Q2 2017 Authorize Construction NSAT GC/CM (MACC) Nov 2012 Authorized Design NSAT Refurbish Baggage System Sept 2013 Authorized Construction NSAT Refurbish Baggage System Jun 2013 Program Briefing Jul 2014 NSAT Expansion Briefing Apr 2014 Program Briefing Mar 2015 Authorize Early const for PLB; PSE agreement CM Offices; STS Display; RMM; Jul 2012 Authorized Design of North Satellite & STS Lobbies Renov Aug 2014 Authorized NSAT Expansion, Addl Design & GC/CM approach Q2 Program Briefing Q2 Program Briefing Sept 2016 Authorize Additional NSAT Construction (3rd floor) Dec 2012 Program Briefing Oct 2013 Authorized Construction Concourse C Vertical Circulation Sept 2013 Program Briefing Oct 2014 Program Briefing Q3 Program Briefing Q2 Program Briefing Nov 2012 Authorized Design Concourse C Vertical Circulation Dec 2015 Authorize Construction NSAT GC/CM Prelim. Work (Mini-MACC) Q4 Program Briefing Q3 Program Briefing Q4 Program Briefing Q3 Program Briefing Q4 Program Briefing Commission Schedule - Past & Future 4 NorthSTAR Program Management CIP: C800554 - NorthSTAR Program Management Purpose: • Overall management of the program; programmatic oversight, coordination and controls for consistency; support between stakeholders and projects; and efficient and successful execution of the entire program's objectives Accomplishments: • Decision to transfer Main Terminal Improvements (MTI) project to Planning Progress: • Updated overall program master schedule to remove MTI & update NSAT project schedule in design/construction Issues: • Maintaining project scope and budget as directed by Commission on 9/14/16 Program Mgmt - Purpose, Accomplishments & Progress 5 NorthSTAR Program Management Risks: • Communication and coordination between multiple teams, stakeholders and people • Maintain the current scope & baseline schedule as agreed to by all stakeholders • Future design change requests could have budget and schedule implication • AS may delay concurrence or Port/AS may choose to proceed without concurrence Metrics: Project Metrics Budget/ Planned Actual Financial Metrics Budget/ Planned Overall Schedule Progress 51% 51% Estimated Total Costs * $19.5M SCS Participation (Program Management) 27.0% 26.8%* Estimated Contingency (including Mgmt Reserve) $0.94M Q4 Cashflow $160k * denotes % of Prime Contractor Budget to date. Actual $4.1M Remaining $15.4M $9.4M $150k * Contingency included; M = millions; k = thousands Program Mgmt - Risks, Metrics 6 NSAT Renovation & NSTS Lobbies CIP: C800556 - NSAT Renovation & NSTS Lobbies Purpose: Renovate and expand the satellite, including infrastructure, seismic reinforcement, gate relocations, north loop Satellite Transit System station (NSTS) lobbies, and new penthouse shell. Provide improved travel experience for customers, improved working environment for employees and long-term energy savings and operational efficiencies Accomplishments: • Installed time-elapsed cameras to record NSAT construction • Successfully completed all preliminary work gate relocations, including N12 ground board gates • Temporary wall construction, graphics, & project monitors installed • Emergency generator cabinet relocated • Successfully completed 100 system shut downs to date North Satellite - Purpose and Accomplishments 7 NSAT Renovation & NSTS Lobbies Accomplishments (Continued): • Received 90% Base Building Design Documents • Finalized schedule of major activities to complete & authorize final MACC (Maximum Allowable Construction Cost) • Completed reviews of emergency generator and baggage expansion in preparation for 90% design • Three FAA Construction Authorization Airspace applications submitted for review: 1) revised base building, 2) drill rig & crane, and 3) jet bridge relocations. • NEPA updated to include Taxiway A/B/L/Q scope • Decision to transfer NSAT Taxiway A scope, authorization and budget to 2018 Airfield Taxiway A/B/L/Q project • Held second regular dispute resolution board meeting and agreed to standard operating procedures North Satellite - Accomplishments 8 NSAT Renovation & NSTS Lobbies Progress • Delayed PWP #2 bid opening for Vertical Circulation package due to the limited response from interested bidders • Conducting lessons learned on gate activations to apply during Phase I construction • Continuing to refine and monitor critical path schedule progress to complete & authorize final MACC • Reviewing base building 90% design submittal and 30+ draft bid packages • Refining construction schedule, bid package scopes of work, final cost and Engineers estimates, and construction phasing in finalizing the MACC • Final contract MACC amendment language being drafted • Met with procurement team on Procurement Excellence implications to project • Begin transfer of Taxiway A scope to 2018 Airfield Taxiway A/B/L/Q project North Satellite - Progress 9 NSAT Renovation & NSTS Lobbies 2016 ID 2017 2018 2019 2020 2021 Task Name Q1 1 Commission Authorization Preliminary Work 2 100% Design - Prelim Work Pkg #1 3 100% Design - Prelim Work Pkg #2 4 100% Design - Base Building 5 Construction - Prelim Work Pkg #1 6 Construction - Prelim Work Pkg #2 7 Commission Authorization - MACC 8 Construction - Base Building Phase 1 9 Construction - Base Building Phase 2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 North Satellite - key milestone 10 NSAT Renovation & NSTS Lobbies Metrics: Financial Metrics Budget/ Planned Estimated Total Costs $538.1M * Estimated Contingency $38.5M Q4 Cashflow $11.5M (including Contingency) Actual $45.4M Remaining $492.7M $28.5M $11.9M Project Metrics Budget/ Planned Actual 10 % 8% Delayed Outbound Bags 0 0 Delayed Outbound Flights 0 0 Safety Hazard Reports (Level 2+) 0 0 < 5 / mo 0 0 39 Overall Schedule Progress Customer Complaints Rec'd Participation Metrics Planned Actual SCS Participation (Design) 3.3% 2.3% SBE Participation (Construction) 16.0% 26.4% 1 SCS Participation (Construction) 5.5% 4.6% 1 MWMBE Participation (Const.) 3.6% 4.1% 1 Apprenticeship Utilization 15.0% 17.5% 1 Minority Utilization (% of apprenticeship) 15.0% 38.73% 1 Women Utilization (% of apprenticeship) 10.0% 19.0% 1 Preferred Entry Apprentices 1 in 5 No Data2 1 Represents SCS participation for PWP #1 effort Only 2 No information available yet - Too early to report Construction Change Orders Processed M = million; k = thousand *Does not include pending scope/budget transfers North Satellite - Q4 2016 Metrics 11 NSAT Renovation & NSTS Lobbies Issues • Signage updates and holdroom gate counter overhead task lighting replacement delayed by abatement work scope (PWP #1) • Revising constructed ground board walkway to provide improved passenger experience, customer service, wayfinding and weather protection • Continue discussing with AS a letter revising final concurrence points for base building from original Letter of Understanding • Continuing alternatives investigation on Phase II ground board operations to eliminate potential need for a temporary apron level holdroom facility • Continuing interior project phasing transition investigations to ensure balanced gate capacity with reasonable customer level of service during construction • Coordinating NSAT gate activation requirements with additional Taxiway A/B/L/Q improvements to mitigate FAA runway incursion concerns • Final definition and agreement continues for AS cost sharing items North Satellite - Issues 12 NSAT Renovation & NSTS Lobbies Issues (continued): • Working with GCCM on schedule improvements to maintain agreed upon project substantial completion date (currently April 2021) Risks • Weatherproofing improvements to ground board walkway may require temporary closures • Potential cost increases on remaining PWP #2 bid items (vertical conveyance) due to strong local construction market conditions • Budget growth due to bid results during the strong local construction market, limited resource availability and lack of interest • Cost and schedule impacts of needed terminal/airside modifications to transition from Phase I to Phase II construction to minimize impacts to level of service and operations North Satellite - Issues, Risks 13 Risks (continued) NSAT Renovation & NSTS Lobbies • Accommodating further Port/AS scope changes or detailed analysis that potentially impacts design and construction schedule • Impacts accommodating the number of operating gates (12 vs 14) in Phase II • Resolution of open issues that impact final design and construction • Complying with FAA Passenger Facility Charges submission requirements • Schedule impacts due to delayed bidding, final MACC negotiations & Commission approval • FAA approvals for NSAT construction authorization applications and taxilane intersection realignment that mitigates potential runway incursions and meets Aircraft Movement Area (AMA) wingtip separation requirements • AS concurrence and continued collaboration with tenant North Satellite - Risks 14 PWP #1 - Construction Work Areas 15 PWP #1 - Stairs & Walkway Work Area 8 16 PWP #1 - Ground Board Walkway 17 PWP #1 - Relocated Generator Cabinet Work Area 8 18 PWP #1 - Building Demolition Begins - Ripping Apart NSAT 19 PWP #1 - Electrical Shutdown of NSAT with TAG out 20 Before PWP #1 - Before & After Building Demolition - North End 21 Relocated N12 PWP #1 - Gate N12 & Construction Wall Graphics 22 PWP #1 - Time Elapse Camera 23