Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
9d
BRIEFING ITEM
Date of Meeting
May 22, 2018
DATE: April 23, 2018
TO: Stephen P. Metruck, Executive Director
FROM: George England, Senior Program Leader, Aviation Project Management Group
Michael Ehl, Director, Aviation Operations
Jeffrey Brown, Director, Aviation Facilities and Capital Programs
SUBJECT: 2018 Q1 NorthSTAR Program and North Satellite Project (CIP C800556) Briefing
EXECUTIVE SUMMARY
The North Sea-Tac Airport Renovation (NorthSTAR) Program is a collaborative effort of the Port
and Alaska Airlines (AS) to improve traveler experience and customer service. The North
Satellite (NSAT) Renovation and Expansion project is the largest segment of the NorthSTAR
Program. This component project addresses the expansion of the North Satellite from 12 to 20
contact gates, modernization of the existing North Satellite facility including North Satellite and
Concourse C Satellite Transit Stations, and expansion of the baggage system to accommodate
the satellite expansion. On August 15, 2017 the Commission approved the remaining
unauthorized funds for the entire NSAT project. The update reflects that construction is well
underway, is currently progressing on schedule and if forecasting to remain within authorized
budget. Current risks, concerns and issues are: 1) finding skilled and qualified labor as the
project ramps up for completion; 2) finalizing the Concourse C vertical transportation
improvements construction work plan and schedule that minimizes closure of the C STS station;
3) finalizing the operational aspects of the Phase 2 ground boarding to be safe and minimize
passenger exposure to the elements; and 4) negotiate the design development change orders
to remain within the contractual allowance.
This presentation details the progress made over the past quarter on these projects.
1. CIP C800556 NorthSTAR NSAT Renovation & North Satellite Transit System Lobbies
This project includes the modernization of NSAT and the satellite transit system (STS) lobbies at
Concourse C and North Satellite including infrastructure and seismic reinforcement, the
expansion of the NSAT to 20 contact gates and expansion of the baggage handling system to
improve customer service, provide a balance of holdrooms, concessions and circulation space
to meet the overall program vision.
Accomplishments
(1) Met 2018 Project Q1 Goal – Primary structural steel installed for Phase 1
COMMISSION AGENDA – Briefing Item No. __9d__ Page 2 of 7
Meeting Date: May 22, 2018
Template revised September 22, 2016.
(2) Alaska level of service and passenger flow analysis completed for Concourse C to NSAT,
preparing stakeholder for decisions to transport passengers via Cobus to NSAT ground
board positions during NSAT Phase 2 construction
(3) 60% Alaska Airline lounge design & 30% Ground Board design reviewed
(4) Received final building permit for the project on 1/16/2018
(5) Received Passenger Loading Bridge installation and Casework bids
(6) Completed Puget Sound Energy gas pipe work under east taxiway
(7) Opened escalator NS4 in NSAT central core
(8) Completed decision to process passengers via Concourse D Annex to NSAT ground
board gates via Cobus during NSAT Phase 2 construction
Progress
(1) Phase 1 Expansion floor slabs nearly complete, with roofing, interior concrete walls and
site utilities ongoing.
(2) Critical path central core escalator NS3 replacement started
(3) Alaska Lounge 90% design and coordination ongoing
(4) Concourse C Satellite Transit System station vertical transportation constructability
review and redesign nearly complete
(5) Expediting design of Phase 1 dining and retail projects
(6) Finalizing Phase 2 Cobus ground board design
(7) East taxiway vehicle service road striping design being modified
Schedule
Milestone
Baseline
Current
Phase 1A Open
Jan 2019
Jan 2019
Phase 1B Open
May 2019
May 2019
Concourse C Substantial Completion
Nov 2019
Nov 2019
Phase 2A Open
May 2021
May 2021
Phase 2B Open/Substantial Completion
July 2021
July 2021
Project Metrics
Budget/Planned
Cumulative Spent Against Authorization
$670.6 M
Overall Work Complete
20%
Cash flow for Reporting Period (Q1 2018)
$30.0 M
Contingency
$23.6 M
Management Reserve *
$29.0 M
Small Contractor Supplier (SCS) Design
10.0%
SBE Participation (Construction)
16.0%
SCS Participation (Construction)
5.5%
WMBE Participation (Construction)
3.6%
COMMISSION AGENDA – Briefing Item No. __9d__ Page 3 of 7
Meeting Date: May 22, 2018
Template revised September 22, 2016.
Apprenticeship Utilization
15.0%
Minority Utilization (% of apprenticeship)
15.0%
Women Utilization (% of apprenticeship)
10.0%
* Requires Commission Notification
M = million
Total Construction Contract Metrics
Budget/Planned
Original Contract Sum
$445.9 M
Executed Change Orders
$9.1 M
Current Contract Sum
$455.0 M
Original Construction Contingency
$23.6 M
Contingency Expended/Authorized
$9.1 M
Remaining Construction Contingency
$15.7 M
Negotiated Support Services (NSS)
NSS Original Budget Value
$40.0 M
NSS Authorized Amount
$6.8 M
NSS Remaining Amount
$33.2 M
Change Orders executed over $300,000:
Central Core Structural Framing Revisions for $459,284 executed 1/22/2018 due to
intermediate structural framing to meet code and escalator design submittal.
Fire Pump Additions for $712,176 and executed 2/22/2018 as requested by Port
Facilities and Infrastructure.
Risks
(1) Ability to maintain current construction schedule could be impacted by further scope
changes, operational changes, customer service, unforeseen or unanticipated situations
(2) Central Core phasing challenges – Complexity of central core escalator and elevator
phasing and impacts to passenger and operational levels of service
(3) Adequately covering within budget non-discretionary/discretionary post final design
scope changes, change orders, errors and omissions and differing site conditions during
construction
(4) Ability to provide adequate terminal/airside facilities (12 vs 14 gates) to minimize
passenger & operational levels of service impacts during Phase 2
(5) Uncertainty regarding certification level, Leadership in Energy & Environmental Design
(LEED)
COMMISSION AGENDA – Briefing Item No. __9d__ Page 4 of 7
Meeting Date: May 22, 2018
Template revised September 22, 2016.
2. CIP 800544 NorthSTAR Program Management & Controls - Consolidated
3. CIP 800547 NorthSTAR Concourse C Vertical Circulation – Complete
4. CIP C800555 NorthSTAR Refurbish Baggage System – Complete
5. CIP C800545 NorthSTAR Main Terminal Improvement – Removed
6. CIP C800554 NorthSTAR Concourse C&D Exterior Stairs - Deleted
ATTACHMENTS TO THIS BRIEFING
(1) Attachment A: Quarterly Commission Update PowerPoint
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
North Sea-Tac Airport Renovations (NorthSTAR) (CIP #C800544)
Jan 30, 2018 – NorthSTAR Program status update
Oct 24, 2017 – NorthSTAR Program status update
July 25, 2017 – NorthSTAR Program status update
April 25, 2017 – NorthSTAR Program status update
January 24, 2017 – NorthSTAR Program status update
September 13, 2016 – Request Commission authorization for the Chief Executive Officer to
(1) increase the North Satellite Renovation & North Satellite Transit Station Lobbies
(NSAT) project scope and budget; (2) increase authorization for project design; (3)
amend design service agreement with URS that exceeds 50% of the value of the original
contract; and (4) increase authorization for Preliminary Work Package #2 (PWP #2)
construction.
August 9, 2016 – NorthSTAR Program Status Update
May 24, 2016 – Commission authorized Chief Executive Officer to 1) increase the North
Satellite project scope and budget; 2) increase authorization for NSAT design and overall
project support; 3) amend service agreements with Jacobs Project Management
Company and AECOM; and 4) authorize the use of port crews and small works
contactors to perform work for the project.
February 23, 2016 – NorthSTAR Program status update
November 24, 2015 – NorthSTAR Program status update
July 14, 2015 – NorthSTAR Program status update
April 28, 2015 – NorthSTAR Program status update
January 27, 2015 – NorthSTAR Program status update
October 28, 2014 - NorthSTAR Program status update
August 19, 2014 - NorthSTAR Program status update
May 27, 2014 – NorthSTAR Program status update
COMMISSION AGENDA – Briefing Item No. __9d__ Page 5 of 7
Meeting Date: May 22, 2018
Template revised September 22, 2016.
January 14, 2014 – NorthSTAR Program status update
September 24, 2013 – NorthSTAR Program status update
June 25, 2013 –NorthSTAR Program status update
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
June 26, 2012 – The Commission received a briefing on the status of the Airline
Realignment Program and budget restructuring in association with the NorthSTAR
Program.
April 10 2012 – Authorizations for the North Sea-Tac Airport Renovations program for: 1)
preliminary project funding; 2) execution of consulting contracts for design/construction
support services and project management services; and 3) use of Port crews and
consultants to conduct regulated materials management surveys and field support
services for preliminary project planning tasks.
North Satellite Renovation & North Satellite Transit Station Lobbies (CIP #C800556)
August 15, 2017 – The Commission authorized
Increase the authorized budget by $107,000,000 capital and $500,000 expense and
authorize the remaining $261,547,392 capital and $8,800,000 expense, amending the
Hensel Phelps (HP) contract by $161,563,526 for the final MACC to complete the
project in Q3 2021. Authorize execution of all pending and future change orders to
the HP contract within the authorized budget and project scope to avoid potential
delays. Authorize Port crews to support NSAT construction and authorize Port staff to
enter into a TRA with AS for the reimbursement of AS and Port responsible design
efforts and improvements.
June 27, 2017 – The Commission authorized four NSAT related items:
increase project authorization for the North Satellite Renovation & North Satellite
Transit Station Lobbies Project by $200,000,000; execute Preliminary Work
Amendment #3 (PWA #3) with Hensel Phelps (HP) for up to $200,000,000; authorize
Port staff to execute all change orders to the HP contract within authorized budget
and project scope without returning for additional Commission authorization; and
authorize Port Construction Services (PCS) to execute small works contracts and use
Port crews to support NSAT construction
September 13, 2016 – The Commission authorized four NSAT related items:
the increase of project scope and budget (capital) by $7,000,000 for the revised third
floor layout to better accommodate the signature restaurant, provide 3,000 additional
square feet of future airport related leasable space, and increase AS premium traveler
lounge as requested by 4,850 square feet.
Increase authorization by $1,000,000 for project design.
Amend design service agreements with AECOM that exceed 50% value of the original
contract.
COMMISSION AGENDA – Briefing Item No. __9d__ Page 6 of 7
Meeting Date: May 22, 2018
Template revised September 22, 2016.
Increase authorization by $30,000,000 to accommodate Preliminary Work Package #2
construction.
May 24, 2016 - The Commission authorized four NSAT related items:
Increase of project scope and budget (capital and expense) by $121,219,098 for 30% &
60% design scope additions and risk contingencies
Increased authorization of $11,000,000 for continued NorthSTAR Program/Project
Management services and NSAT design and overall project support.
Amend service agreements with Jacobs Project Management Co. and AECOM.
Authorize the use of port crews and small works contractors.
December 8, 2015 – The Commission authorized $98,100,000 for the following:
Additional Pre-Construction services ($1,200,000)
Construction auditing services
Preliminary Construction work
March 24, 2015 – The Commission authorized three NSAT related items:
Expand the baggage handling system increasing the project scope for $14,400,000 and
$1,954,000 to complete the design.
Entering into a developer agreement with Puget Sound Energy and $200,000 in
reimbursement for the design and construction of underground gas infrastructure.
$5,300,000 to Prepare four locations to accommodate temporary passenger loading
bridges, to construct temporary construction offices; To complete construction of a
Satellite Transit System (STS) North loop Dynamic Display system; $600,000 in expense
funds for regulated materials management for AS’s tenant improvement project; and
Approval to use Port crew labor and small works contractors to complete early project
work.
August 5, 2014 – The Commission authorized expansion of the NSAT, $191,323,143 budget
increase, $15,717,800 to complete the design, execute amendments to existing
consulting contracts; execute future consulting contracts and use of and to advertise for
General Contractor/Construction Manager (GC/CM) alternative public works contractor.
July 22, 2014 - NSAT Expansion Briefing
April 22, 2014 – Seattle-Tacoma International Airport Capital Program - Briefing
January 14, 2014 – NSAT expansion briefing.
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.
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.
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, for $1,200,000.
COMMISSION AGENDA – Briefing Item No. __9d__ Page 7 of 7
Meeting Date: May 22, 2018
Template revised September 22, 2016.
NorthSTAR Concourse C Vertical Circulation Project (CIP #C800547)
October 22, 2013 – Commission authorized $16,145,000 for advertising for bids, executing
a major construction contract, executing a tenant reimbursement agreement with AS,
using Port crews to provide construction services for the Concourse C Vertical
Circulation.
November 6, 2012 – Commission authorized the design for the 1:20 sloped walkways and
elevator(s) at Gates C2, C10-12, and C14 on Concourse C.
NorthSTAR North Main Terminal Improvements Project (CIP #C800545)
December 3, 2013 – Commission authorized $1,500,000 for preliminary engineering up to
30% design.
North Satellite Refurbish Baggage System Project (CIP#C800555)
September 24, 2013 – The Commission authorized staff to: (1) advertise, award, and
execute a major public works contract for the construction of the North Satellite
Refurbish Baggage System Project; and (2) authorize the use of Port crews.
July 12, 2013 – The Commission was notified of 1 added scope item and 2 scope items
moved into the scope previously identified as suggested scope.
November 6, 2012 – The Commission authorized staff to prepare design documents and
use Port crews to support site investigation needed to develop the contract documents,
for $3,760,000.