Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
9a
BRIEFING ITEM
Date of Meeting
November 27, 2018
DATE: November 2, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Ken Warren, Program Leader, Aviation Project Management Group
Michael Ehl, Director, Aviation Operations
Jeffrey Brown, Director, Aviation Facilities and Capital Programs
SUBJECT: 2018 Q3 NorthSTAR Program and North Satellite Project Briefing (CIP #C800556)
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. This update reflects that construction is well
underway, is currently progressing on schedule, approximately 12 weeks from the opening of
Phase 1A and is forecasting to remain within authorized budget. Phase 1A is an opening of 5
new aircraft gates, the north holdroom, concessions, and the river concourse leading from the
existing building.
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 from 12 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) Phase 1 Taxiway A/B Reconfiguration completed
(2) East taxiway vehicle service road striping completed
(3) Completed building dry-in (envelope weatherproof) for expansion
COMMISSION AGENDA – Briefing Item No. _9a_ Page 2 of 7
Meeting Date: November 13, 2018
Template revised September 22, 2016.
(4) Passenger Loading Bridges (PLB) delivery dates set for October 22
nd
& 30
th
(5) Established a combined collaborative Commissioning and Activation meeting to ensure a
complete and cohesive Phase 1 Activation Plan
(6) Finalized Port furnished Phase 1A & B items and initiated procurement for timely
deployment, commissioning and activation
(7) Emergency Generator delivered and placed
(8) Turned over 5 Tenant spaces for Airport Dining and Retail (ADR) tenant construction
including the new Alaska Board Room
(9) Completed collaborative (Port, Alaska) Concourse C STS closure mock-up to validate
January to November 2019 congestion and customer service impacts with successful
customer results
Progress
(1) Finalizing decision for Hardstand D support for NorthSTAR construction
(2) Escalator NS2 signage and wayfinding improvements completed and construction
underway
(3) Phase 1 tenant construction began, is progressing and being tracked
(4) NS1 escalator nearing completion
(5) Phase 1 Expansion
o Hold room at north end preparing for ceilings
o Terrazzo and River ceiling ongoing
o Ramp concrete placement on west and north side progressing
o Baggage expansion continues
o Mechanical Infrastructure startup in early December
o Electrical power system ongoing with forecasted energizing at end of October
(6) Concourse C coordinated and set to close STS station to begin work first week in January
2019
(7) ADR and Alaska Lounge spaces are now in construction
(8) Phase 1 holdroom seating purchase in progress
(9) LEED final design submittal in final steps of approval by US Green Building Council with
anticipated points sufficient to obtain Silver certification
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
COMMISSION AGENDA – Briefing Item No. _9a_ Page 3 of 7
Meeting Date: November 13, 2018
Template revised September 22, 2016.
Project Metrics
Budget/Planned
Cumulative Spent Against Authorization
$672.1 M
Overall Work Complete
30%
Cash flow for Reporting Period (Q3 2018)
$32.9 M
Construction Contingency
$23.6 M
Management Reserve *
$18.2 M
Small Contractor Supplier (SCS) Design
6.4%
SBE Participation (Construction)
16.0%
SCS Participation (Construction)
5.5%
WMBE Participation (Construction)
3.6%
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
$9.5 M
Current Contract Sum
$455.4 M
Original Construction Contingency
$23.6 M
Contingency Expended/Authorized
$8.3 M
Remaining Construction Contingency
$15.3 M
Negotiated Support Services (NSS)
NSS Original Budget Value
$40.1 M
NSS Authorized Amount
$11.1 M
NSS Remaining Amount
$29.0 M
Change Orders executed over $300,000:
Holdroom Casework for $1,440,738 executed 7/3/2018 adding scope to GC/CM contract
that was requested by Alaska and approved February 2016
Baggage Handling System Revisions for $543,339 executed 7/19/2018
Increase to MC/CM Design Development Allowance for $311,465 executed on 8/8/2018
Issued two change orders with a combined amount of $317,269 for revisions to the
Restrooms on 6/22/2018 and 9/24/2018.
COMMISSION AGENDA – Briefing Item No. _9a_ Page 4 of 7
Meeting Date: November 13, 2018
Template revised September 22, 2016.
Risks and Critical Issues
(1) Ability to maintain current construction schedule for Phase 1 opening 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) Shortages of workers in critical trades are being mitigated by working additional days
per week on overtime
(5) Cobus Operations – Maximize level of service; minimize exposure to elements; maintain
safety
(6) Contractor Design Development estimate exceeds contractual allowance by $3.5M
(7) Dining and Retail project completing on time for Phase 1 opening
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)
July 31, 2018 – NorthSTAR Program status update
May 22, 2018 – NorthSTAR Program status update
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
COMMISSION AGENDA – Briefing Item No. _9a_ Page 5 of 7
Meeting Date: November 13, 2018
Template revised September 22, 2016.
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
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
COMMISSION AGENDA – Briefing Item No. _9a_ Page 6 of 7
Meeting Date: November 13, 2018
Template revised September 22, 2016.
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.
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
COMMISSION AGENDA – Briefing Item No. _9a_ Page 7 of 7
Meeting Date: November 13, 2018
Template revised September 22, 2016.
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.
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.