Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
9b
BRIEFING ITEM
Date of Meeting
February 26, 2019
DATE: February 19, 2019
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 Q4 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) Modernization project is the largest segment of the NorthSTAR Program. This
component project addresses the expansion of North Satellite contact gates, modernization of
the existing North Satellite facility including North Satellite and Concourse C Satellite Transit
Stations, and expansion of the baggage system. 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 four weeks since the opening of Phase 1A and is forecasting at the authorized
budget. Phase 1A marked the opening of five new aircraft gates, new north holdrooms, and a
new north concourse leading from the existing building.
This presentation details the progress made over the past quarter on these projects, including
key items subsequent to that in January 2019 due to the major milestone of Phase 1A opening.
1. NorthSTAR NSAT Renovation & North Satellite Transit System Lobbies (CIP C800566)
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 1A successful opening on schedule 1/23/19
(2) Completed successful full-scale passenger experience simulation - Operational
Readiness, Activation and Transition (ORAT) for Phase 1A 1/12/19
COMMISSION AGENDA – Briefing Item No. 9b Page 2 of 7
Meeting Date: February 26, 2019
Template revised September 22, 2016.
(3) Began construction in existing NSAT building 1/24/19
(4) Passenger Loading Bridge procurement and installation lessons learned will inform next
phase opening
(5) Conducted joint Commissioning and Activation (ORAT) meetings to develop Phase 1
Activation Plan
(6) Finalized Port furnished Phase 1A & 1B items including deployment, commissioning and
activation (ICT electronics, load dock equipment, recycle containers)
(7) Emergency Generator placed into service for NSAT
(8) On track to complete Tenant spaces for Airport Dining & Retail (ADR) tenant
development and construction
(9) Closed Concourse C Satellite Transit System station and vertical circulation to Concourse
area for construction; demolished escalator
Progress
(1) On track to open new west side restrooms in March
(2) Open remaining tenants and deployed temporary Grab and Go concessions in expansion
area
(3) New Loading Dock with better accessibility and improved amenities to be placed into
service in March
(4) NS2 escalator nearly complete
(5) Phase 1 tenant construction progressing
(6) Phase 1 Expansion
o Ramp concrete placement on west and north side complete
o Ramp area progressing
o Baggage expansion progressing
o Third floor areas on track for scheduled openings
o Remaining expansion holdrooms progressing for Phase 1 opening
o Concourse C vertical circulation construction underway
(7) Alaska Lounge in construction by Alaska
(8) Final LEED design submittal review by US Green Building Council expected February
COMMISSION AGENDA – Briefing Item No. 9b Page 3 of 7
Meeting Date: February 26, 2019
Template revised September 22, 2016.
Schedule
Milestone
Baseline
Current
Phase 1A Open
Jan 2019
Jan 2019
Phase 1B Open
May 2019
May 2019
Concourse C Substantial Completion
Jan 2020
Nov 2019 in
use
Phase 2A Open
May 2021
May 2021
Phase 2B Open/Substantial Completion
July 2021
July 2021
Project Metrics
Utilization
to Date
Cumulative Spent Against Authorization
$278.5 M
Overall Work Complete
40%
Cash flow for Reporting Period (Q4 2018)
$57.1 M
Construction Contingency
$10.3 M
Management Reserve *
$3.2 M
Small Contractor Supplier (SCS) Design
6.2%
SBE Participation (Construction)
14.7%
SCS Participation (Construction)
5.5%
WMBE Participation (Construction)
3.5%
Apprenticeship Utilization
22.0%
Minority Utilization (% of apprenticeship)
24.4%
Women Utilization (% of apprenticeship)
3.2%
* Requires Commission Notification
M = million
Total Construction Contract Metrics
Percent
Original Contract Sum
Executed Change Orders
3.3 %
Current Contract Sum
Original Construction Contingency
Contingency Expended/Authorized
56.4 %
Remaining Construction Contingency
43.6 %
Negotiated Support Services (NSS)
NSS Original Budget Value
NSS Authorized Amount
28.7 %
NSS Remaining Amount
71.3 %
COMMISSION AGENDA – Briefing Item No. 9b Page 4 of 7
Meeting Date: February 26, 2019
Template revised September 22, 2016.
Change Orders executed over $300,000:
CO# 341 & 342: Increase Design Development Allowance $3.1 million; CO# 360: Exterior
Soffit Modification $345,000
Risks and Critical Issues
(1) Construction Schedule – Tracking Phase 1B opening for May 6, 2019
(2) Central Core phasing challenges – Complexity of central core escalator and elevator
phasing
(3) Adequately covering within budget - post final design scope changes, errors and
omissions, differing site conditions, and other change orders during construction
(4) Contractor Design Development estimate will exceed contractual allowance (currently by
$4.4M)
(5) Sustainability of mitigating shortage of workers in critical trades by working additional
days per week on overtime
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)
November 13, 2018 – NorthSTAR Program status update
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
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
COMMISSION AGENDA – Briefing Item No. 9b Page 5 of 7
Meeting Date: February 26, 2019
Template revised September 22, 2016.
(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
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
COMMISSION AGENDA – Briefing Item No. 9b Page 6 of 7
Meeting Date: February 26, 2019
Template revised September 22, 2016.
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
Approval to use Port crew labor and small works contractors to complete early project
work.
COMMISSION AGENDA – Briefing Item No. 9b Page 7 of 7
Meeting Date: February 26, 2019
Template revised September 22, 2016.
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.