Item No. Date of Meeting 9a_supp November 27, 2018 Sea-Tac International Airport NorthSTAR Program Third Quarter 2018 Program and North Satellite Project Update AGENDA • Project Overview • 2018 Quarter 3 News • Budget • Schedule • Challenges • Accomplishments • Progress • Sustainability North Satellite Modernization 2 PROJECT OVERVIEW • 12 to 20 contact gate positions • 263,000 sf to 428,000 sf Key elements: Infrastructure Gate additions Clerestory river Airline services North Satellite Modernization Marketplace Station lobbies Technology Seismic reinforcement 3 2018 Q3 News • On budget & schedule for Q1, 2019 Phase 1A opening of 5 gates • Tenant spaces (Concessions, Alaska Lounge) turned over for tenant construction; tracking their progress to Phase 1A & B openings • Completed building envelope dry-in for the installation finishes • Concourse C train station set to close January 2019 for 11 months • Alaska will operate ground boarding at Air Cargo 5 (AC5) from the D Annex through 2021, eliminating need for NSAT Ground Board Gates • Q3 project worker peak: 330 workers; safety scorecard • Coordinating procurement and deployment of ICT, load dock equipment, recycle containers (Port furnished items) • Collaborative Phase 1 Commissioning and Activation implementation planning ongoing Within contracted budget and Schedule 4 Millions FINANCIAL PROGRESS REPORT $700 $600 Authorization Summary Capital Expense Total Current Budget $659.8M $12.3M $672.1M Current Authorization $659.8M $12.3M $672.1M $0.0M $0.0M $0.0M Remaining to be Authorized $500 Total Project (Capital + Expense) $400 Prior Budget Period Changes Current Budget Spent to Date Forecast at Completion Variance $300 Soft Cost $91.2M $3.0M $94.2M $55.3M $96.7M $2.5M $200 Construction $532.9M $13.0M $545.9M $164.8M $575.4M $29.5M $100 Construction Contingency $20.1M <$4.8M> $15.3M $0.0M <$15.3M> $- Project Contingency $8.6M <$7.5M> $1.1M $0.0M <$1.1M> Management Reserve $18.2M <$2.6M> $15.6M $0.0M <$15.6M> $671.0M $1.1M $672.1M $672.1M $0M Management Reserve Remaining Construction Remaining Construction Spent Soft Cost Remaining Soft Cost Spent Financial Breakdown - Project Tracking Within Authorized Budget $220.1M 5 FINANCIAL PROGRESS REPORT Value Additions to Management Reserve $344,440 Value Deducts from Management Reserve Concourse C "Savings" Transferred to Management Reserve <$42,400> Communications (2) $1,109,599 Baggage Renovation "Savings" Transferred to Management Reserve <$190,200> Security (3) $1,454,039 TOTAL ADDITION TO MANAGEMENT RESERVE <$2,239,900> Building Layout (4) <$853,400> Infrastructure (2) <$698,200> Tenant Improvements (7) <$13,600> Baggage (1) <$4,037,700> TOTAL DEDUCT FROM MANAGEMENT RESERVE • Management Reserve was reduced by $2,583,661 during Q3 2018 • Management Reserve will be further reduced to cover the forecasted $3.5M overage to reconcile the final contractual Design Development Allowance • Forecasting the remaining $15.3M Construction Contingency will be spent on current trends ($11.5M), risks in retrofitting the existing building and additional unforeseen underground items (utilities, contaminated soil) • Forecasting future reductions in the $16.7M Project Contingency and Management Reserve for additional discretionary changes, risks in retrofitting the existing building, unforeseen items, retaining staff (soft costs) and to replenish construction contingency • $396.4M in construction remain to be spent Management Reserve Utilization Last Quarter 6 SCHEDULE Phase 1A Occupancy 1/23/2019 Building Enclosed Aug 2018 Steel Superstructure (12/17 thru 2/18) Phase 1B Occupancy 5/9/2019 Phase 1 Escalators and Elevators (2/18 thru 4/19) Ramp Concrete (4/18 thru 6/18) Systems Install / Commission & Activation Roof Insulation (3/18 thru 8/18) Exterior Skin (4/18 thru 8/18) Mech / Elect / Plumbing (3/18 thru 11/18) Penthouse Rough-in (4/18 thru 10/18) Exterior Stairs (7/18 thru 9/18) Apron Paving & Utilities (4/18 thru 11/18) Emergency Generator (8/18 thru 10/18) PLBs / Finishes (9/18 thru 5/19) <> Critical Path on track through Phase 1 opening 7 SMALL BUSINESS/APPRENTICESHIP UTILIZATION APPRENTICESHIP SCS/SBE/WMBE WMBE Const (3.6%) Overall (15%) SBE Const (16%) Women (10%) SCS Const (5.5%) Minority (15%) SCS Design (10%) 0.0% 20.0% 40.0% 60.0% Goal 80.0% 100.0% 120.0% Actual 0.0% 50.0% 100.0% Goal 150.0% 200.0% 250.0% Actual • On track to meet or exceed 2014 goals by completion. Tracking close to or exceeding goals 8 CHALLENGES • Construction Schedule - Remains on track for Q1 Phase 1A opening • Central Core phasing - Complex; Minimize passenger and operational level of service impacts • On budget, but need to cover scope changes during construction • Cobus Operations - Maximize level of service; minimize exposure to elements; maintain safety • Contractor Design Development forecast exceeds contract allowance; using Management Reserve to cover excess • Dining and retail project completing on time - NSAT team continues tracking opening • Shortages of workers in critical trades are being mitigated by working additional days per week on overtime North Satellite - CHALLENGES 9 ACCOMPLISHMENTS Phase 1 Taxiway A/B Reconfiguration and east taxiway vehicle service road striping completed Completed team performance survey and presented the results Completed building dry-in (envelope weatherproof) for expansion Passenger Loading Bridges delivery dates set for October 22 and 30 Conducting joint Commissioning and Activation meetings to develop the Phase 1 A & B Activation Plans Finalize Port furnished Phase 1 A & B items & initiated procurement for timely deployment, commissioning and activation (ICT electronics, load dock equipment, recycle containers) Emergency Generator delivered and placed Turned over 4 Tenant spaces for Airport Dining & Retail (ADR) tenant construction including the new Alaska Board Room Completed collaborative Concourse C STS closure mock-up (port, Alaska) with successful customer results North Satellite - ACCOMPLISHMENTS 10 PROGRESS • Finalizing decision for Hardstand D support for NorthSTAR construction • NS2 signage and wayfinding improvements progressing • Phase 1 tenant construction progressing • NS1 escalator nearing completion • 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 ongoing with forecasted startup in early December o Electrical power system ongoing with forecasted energizing at end of October • Concourse C coordinated and set to close train station to begin work first week of January • ADR and Alaska Lounge in construction • Phase 1 holdroom seating purchase in progress • Awaiting final LEED design submittal approval by US Green Building Council North Satellite - PROGRESS 11 July 2018 Sept 2018 View of the New Expansion from Fire Station 12 July 2018 Sept 2018 View of the New Expansion from Concourse C 13 Rendering of NSAT - 2016 View from Air Cargo Rd - October 2018 View from Air Cargo Road 14 Construction photos 15 Construction photos 16