PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
6a
CORRECTED COPY Date of Meeting
March 8, 2011
DATE: March 8, 2011
TO: Tay Yoshitani, Chief Executive Officer
FROM: Michael Ehl, Director, Airport Operations
George England, Program Leader, Aviation Capital Improvement Program
SUBJECT: Parking System Replacement Procurement and Construction Management at
Seattle-Tacoma International Airport Main Parking Garage (CIP # C800253).
Amount of This Request: $9,317,000 Source of Funds: Airport Development Fund
Total Cost of Project: $9,777,000 Sales and Local Taxes Paid: $730,000
ACTION REQUESTED:
Request authorization for the Chief Executive Officer to (1) amend outside professional services
agreement with Kimley-Horn and Associates from $304,968 up to a total of $642,000 for support
during installation, inspection, testing and commissioning services; (2) perform contract
administration; and (3) execute a purchase contract for a new Parking Revenue Control System
(PRCS) at Seattle-Tacoma International Airport (Airport). Total value of this request is
$9,317,000, bringing the total authorized amount to $9,777,000. Staff determined this project is
not a public works construction project. In accordance with RCW 53.19.060, this memorandum
constitutes notification to the Commission that the amended amount of this contract exceeds
50% of the original not to exceed contract value.
SYNOPSIS:
This project replaces the current Parking Revenue Control System installed in 1999 that manages
parking access and revenue collection in the Airport's Main Parking Garage. The replacement
PRCS will be installed by the system supplier and address a number of limitations in the existing
system that include difficult reporting features, Payment Card Industry Data Security Standard
(PCI/DSS) compliance problems, limited rate setting flexibility, and aging components. The
replacement system will allow the Port to take advantage of new features such as desktop
validations, GoodToGo! region-wide tolling compatibility, and proximity card reading. The
installation is included in the purchase contract and will reuse the existing system’s power and
communications connections, and equipment mounting locations. Staff determined this project
is not a public works construction project; the installation portion is estimated to only be about
2.5% of the project’s overall budget and considered incidental.
With the approval of this authorization, the Kimley-Horn design contract will be amended to
include system selection, PCI certification, construction engineering, and commissioning
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
March 8, 2011
Page 2 of 7
support. While a contract amendment for additional fee and scope was anticipated from the
outset for these tasks, a revamped and more rigorous PCI certification effort during the
manufacturing process will add cost beyond what was originally anticipated during contact
negotiations. This will raise the contract amount from $304,968 to $640,661. In accordance
with RCW 53.19.060, this memorandum constitutes notification to the Commission that the
amended amount of this contract exceeds 50% of the original not to exceed contract value. This
memorandum will be placed on file for public inspection at the Port’s bid desk.
BACKGROUND:
The existing revenue control system was purchased and installed in 1999 as part of the expansion
of the Airport’s Main Garage. Developed by Scheidt and Bachman (S&B), the system enhanced
the parking experience through automation. The Port introduced pay-on-foot machines and gave
customers the ability to pay for parking with a credit card at all Toll Plaza exit lanes. Overall the
system has been a success, but no longer provides the type of functionality required in a modern
airport parking environment.
This project will provide a state-of –the-art system based on current equipment and electronic
technologies as well as banking/credit card industry standards. For instance, Payment Card
Industry standards have changed substantially since the existing system was installed. Current
PCI/DSS standards require advanced encryption of credit card information. The Port’s existing
revenue control system is not capable of advanced encryption and is currently considered non-
compliant. The Port’s Information & Communications Technology and Aviation Maintenance
departments have worked to mitigate the issue. However, in order to avoid banking industry
sanctions, the Port must present a formal plan that includes interim controlling measures, the
scope of the system replacement, a schedule indicating the timely replacement of the existing
system, and any authorizations by the Port Commission.
Other problems with the current system relate to business functions such as rate setting,
reporting, and various payment or marketing features (e.g., customer discount coupons and
contactless payment cards). Adjusting parking rates and tax rate settings is difficult with the
existing system, often requiring coding and considerable staff time to make minor adjustments.
Another of the Port’s goals is to have a system that can be easily manipulated to generate reports
without extensive scripting or intervention into the system software, which is currently
necessary. Although S&B originally developed a number of default reports, they have proven
inadequate for the type of analysis necessary to manage the Airport's parking products. Staff has
frequently needed to develop programs or custom work-around reports in-house to obtain
useable data from the system. Coupons and gift cards with declining balances can be used with
S&B, but they require manual input and cannot utilize the automated features that customers
have come to enjoy.
Changing parking rate settings quickly is difficult with the existing revenue control system, but
will be improved with the replacement system. The Port would like to take advantage of
emerging technologies, such as contactless fare cards, remote ticketing using bar code readers,
and Radio Frequency Identification (RFID) technology as used in the Washington State
Department of Transportation’s (WSDOT) GoodToGo! tolling system.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
March 8, 2011
Page 3 of 7
In summary, the project will update the way credit card information is processed on Port systems
and enhance the Port's ability to manage and market its parking products.
PROJECT DESCRIPTION/SCOPE OF WORK:
Project Statement:
Project will replace the revenue control system at the Airport Main Garage.
Project Objectives:
Control capital costs and minimize operating costs
Provides PCI/DSS compliant system that readily accommodates future credit card payment
industry requirements
Allow for flexible reporting capabilities
Provide tariff setting flexibility that maximizes revenue
Incorporate technological compatibility and interoperability
Maximize use of existing infrastructure
Allow operation of existing and new system during start up of replacement system
Scope of Work:
The project will include the following elements:
Existing elements of PRCS infrastructure not scheduled to be replaced will be tested to insure
proper functioning
Design and installation of interim controlling measures to ensure compliance with credit
industry standards until new system is installed
Development of civil engineering, infrastructure and equipment needs and specifications
Design of system software to meet business and audit requirements
Selection of a systems supplier
Removal and replacement of existing outdated software, servers, ticket issuers, pay-on-foot
machines, toll plaza hardware by the selected system supplier
The Port will maintain ownership and control of the discarded elements of the PRCS.
Extensive systems testing for operational and PCI/DSS compliance
The requested action authorizes an amendment to an outside professional services agreement to
facilitate procurement support, inspection, testing and commissioning services, performance of
contract administration by Kimley-Horn and Associates; preparation of contract documents and
advertisement of a request for proposals by Port staff, and procurement and installation of a new
PRCS by a system provider.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
March 8, 2011
Page 4 of 7
STRATEGIC OBJECTIVES:
This project supports the Port’s strategy to “Ensure Airport Vitality” and to “Exhibit
Environmental Stewardship through our Actions.”
FINANCIAL IMPLICATIONS:
Budget/Authorization Summary
This budget and authorization summary is for the Parking System Replacement (CIP #
C800253):
Source of Funds
The Parking System Replacement Project (CIP # C800253) is included in the 2011-2015 capital
budget and plan of finance as a committed project. The source of funds for this project, as
identified in the plan of finance, is the Airport Development Fund.
Financial Analysis Summary
The Airport Main Parking Garage revenue control system processes over two million
transactions annually, generating $48,309,736 in revenue in 2010. The current system has been
in service for 12 years and is having increasing difficulty meeting current PCI/DSS standards.
The Port’s PRCS is a principal contributor to the PCI/DSS governed transactions processed by
the Port. Failure of any portion of the Port’s financial system to meet PCI/DSS standards in a
timely fashion could lead to fines ultimately being levied on the Port. Parking revenues are
Original Budget
Budget Increases
Budget Transfers
Revised Budget
Previous Authorizations
$460,000
Current request for Authorization
$9,317,000
Total Authorizations, including this request
$9,777,000
Remaining Budget to be Authorized
$0
Project Cost Breakdown
This Request
Total Project
Equipment & Installation Cost
$6,547,000
Sales Tax
$730,000
Outside Professional Services
$231,000
Port Costs
$2,269,000
Total
$9,317,000
$9,777,000
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
March 8, 2011
Page 5 of 7
expected to grow over time with the development of new parking products and the flexibility
afforded by two floors of additional parking when the Rental Car Facility opens in mid-2012 and
rental car companies vacate the garage.
The PRCS is categorized as a Renewal/Replacement project.
CIP Category
Renewal/Replacement
Project Type
Renewal & Replacement
Risk adjusted Discount rate
N/A
Key risk factors
Time span and phasing of construction
Project cost for analysis
$9,777,000
Business Unit (BU)
Landside
Effect on business performance
Will preserve existing revenues, facilitate revenue
growth, and reduce O&M costs.
IRR/NPV
N/A
CPE Impact
None, Not Applicable
OPERATION & MAINTENANCE IMPLICATIONS:
Aviation Division annual O&M for continued operation of the existing S&B system are
estimated at $800,000 with a projected 3% increase in the following years. A goal of the project
is to procure a PRCS with lower O&M costs. Fewer pay-on-foot machines will be deployed,
reducing the number of machines that would potentially need to be serviced, powered, and
restocked.
ECONOMIC IMPACTS:
The Main Parking Garage provides a primary revenue source for the Port of Seattle. The garage
generated over $48 million in 2010, a number that Port staff expects to increase over time
through innovative parking tariff strategies and garage capacity enhancements. Having an up-to-
date, flexible and smoothly functioning revenue control system is central to maximizing revenue
and minimizing operating costs.
ENVIRONMENTAL SUSTAINABILITY/COMMUNITY BENEFITS:
The project will be re-using as much of the current system’s communication and power
infrastructure as possible. The project will also specify that vendors must use the existing
mounting locations for the ticket issuers and pay-on-foot machines. Re-use of this existing
infrastructure is in keeping with Port environmental policy as it reduces long term capital costs,
is environmentally sustainable, and uses existing resources.
Reduction in the number of pay-on-foot machines will reduce the electricity used by the system,
and paper ticket stock inventories may be able to be reduced.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
March 8, 2011
Page 6 of 7
TRIPLE BOTTOM LINE SUMMARY:
The PRCS enhances functionality of a valuable Port asset, allows the Main Parking Garage asset
to expand its revenue generating capacity, and utilizes existing Port infrastructure in a manner
that reduces project costs. This approach will reduce project development costs, minimize the
environmental impact of updating the system, and allow compliance with the most current
industry standards.
PROJECT SCHEDULE:
The following is a list of key project milestone dates:
Bid Advertisement April 2011
Construction Start June 2011
Construction Complete December 2011-March 2012
ALTERNATIVES CONSIDERED/RECOMMENDED ACTION:
Alternative 1: Replace Existing System - This option would replace the existing operating
system sofware, network hardware, pay-on-foot machines, and ticket issuers. This option will
attempt to maximize re-use of existing infrastructure and wiring. Additional features would be
added including GoodToGo! RFID reader technology, remote electronic parking validation, new
reporting features, and proximity card readers. This solution would provide the ability to easily
update the system to future changes in PCI/DSS requirements and allow for future capacity and
parking product expansion. This is the recommended alternative.
Alternative 2: Do Nothing – The existing S&B revenue collection system is functionally out of
date with industry standards. Repeated attempts to upgrade the existing system through software
patches are no longer effective, as they are not able to keep pace with the latest PCI/DSS security
or payment processing requirements. The Port has been informed that it could face punitive
action or be dropped entirely as a credit card merchant if the existing system is not replaced.
This is not the recommended alternative.
Alternative 3: Upgrade Software Only - This option would upgrade software and network
hardware to comply with PCI/DSS requirements for data storage and credit card handling. In
2006, a project was initiated by Airport Operations to upgrade the S&B system software and
servers for PCI/DSS compliance. This project was shelved due to a combination of factors
including the limited management capabilities of the aging S&B system direct costs associated
with a major upgrade, and existing field devices that could not be made PCI/DSS compliant,
making future replacement inevitable. In addition, the existing system would not allow
interoperability with the WSDOT GoodToGo! system. This is not the recommended alternative.
PREVIOUS COMMISSION ACTION:
On April 6, 2010, the Commission authorized $460,000 for the execution and award of an
outside professional services agreement for design services to prepare procurement specifications
for the PRCS.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
March 8, 2011
Page 7 of 7
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST:
No Attachments