PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
5d
Date of Meeting
April 12, 2011
DATE: March 30, 2011
TO: Tay Yoshitani, Chief Executive Officer
FROM: Arif Ghouse, Senior Manager Seaport Security
Russ Read, Seaport Security Program Manager
Kate Deaver, Capital Project Manager III
SUBJECT: Department of Homeland Security Round 7 Seaport Security Grant Construction
Funding, Seaport Security Grant Round 7: Terminal 91 TWIC Implementation
(CIP #C800165)
Amount of This Request: $953,000
Est. State and Local Taxes: $69,000 Est. Construction Jobs Generated: 7
Total Capital Project Cost: $2,283,090 Source of Funds: General Fund
ACTION REQUESTED:
Request Commission authorization for the Chief Executive Officer to advertise for construction
bids, award and execute the contract and construct the final phase of the Transportation Worker
Identification Credential (TWIC) infrastructure and implementation at Terminal 91. The amount
of this request is $953,000 bringing the total authorized amount of this project to $2,283,090.
(An additional $294,000 was previously authorized under this grant for training but is not tied to
this CIP.)
SYNOPSIS:
In an effort to increase security at the nation’s strategic and economically important seaports,
Department of Homeland Security (DHS) established a Port of Seattle (”Port”) Security Grant
Program. The Port has applied for and received grant funding through this program in 2002,
2003, 2004, 2006, and 2007 and completed many projects on its own facilities to further the
objectives of enhanced maritime security. This project is being done as part of the Round 7
Grant. Round 7 provides for the automation of the gates and integration of the TWIC readers
into the Port’s security system to assist in compliance with Title 33, Code of Federal Regulations
Parts 101.514 and 105.255.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
March 30, 2011
Page 2 of 5
The in-house design of the Round 7 grant work, TWIC card reader infrastructure and the
software design, integration and configuration of the TWIC card system, as well as the provision
of security training and exercises totaling $1,624,090, was authorized by the Commission on July
7, 2009. This request is for the construction of the infrastructure necessary for the installation
and implementation of the TWIC readers and cameras in the amount of $953,000. Of that
amount, $568,000 will be reimbursed by the Round 7 grant and the remainder of $385,000 will
be the Port’s responsibility.
PROJECT JUSTIFICATION:
Later in 2011, DHS is expected to publish new security rules requiring the use of automated
TWIC readers. It is necessary for the Port to proceed with this project to be in compliance with
the new TWIC security regulations, specifically as enumerated in Title 33, Code of Federal
Regulations, Parts 101.514 and 105.255. Failure to comply with these regulations would result
in the Port’s ineligibility to receive certain Maritime Transportation Security Act (MTSA)
regulated vessels, and would preclude business at Terminal 91 (T-91).
PROJECT STATEMENT AND OBJECTIVES:
Project Statement:
This project will complete the construction and implementation of the TWIC infrastructure by
December 2011.
Project Objectives:
This project will provide automated access to the Port’s controlled TWIC restricted areas.
This project will keep impacts to ongoing operations at the facility to a minimum.
This project will utilize grant funding and Port funding in the most economical manner.
Project will be completed within budget.
Project will be completed within grant allowable timeframe.
PROJECT SCOPE OF WORK AND SCHEDULE:
Scope of Work:
The scope of this project includes all aspects of construction, including trenching, cabling,
equipment installation, software integration, to automate the TWIC facility requirements.
Schedule:
Start
Finish
Bid Document Prep
April 1, 2011
May 1, 2011
Bid Period (bid, submittals and award)
May 1, 2011
August 1, 2011
Construction
August 2011
November 2011
ICT Integration
November 2011
December 2011
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
March 30, 2011
Page 3 of 5
FINANCIAL IMPLICATIONS:
Budget/Authorization Summary
Previous Authorizations
$1,330,090
Current request for authorization
$953,000
Total Authorizations, including this request
$2,283,090
Total Estimated Project Cost
$2,283,090
Project Cost Breakdown
This Request
Construction
$701,000
Project Management & Other Soft Costs
$183,000
State & Local Taxes (estimated)
$69,000
Total
$953,000
Project Cost Breakdown with Grant Funding
Grant
Project
Total Cost
DHS Funding
75%
Port Match
25%
Ineligible
Costs
Total Port
Costs
Port Cost as
a % of Proj
Round 7
Constructi
on Only
(This
Request)
TWIC
Infrastructure and
Implementation
Construction
$953,000.00
$568,000.00
$189,000.00
$196,000.00
$385,000.00
40%
Previous
Request
T-91 TWIC
Infrastructure
Design and TWIC
Enrollment
Projects
$1,330,090.00
$653,000.00
$218,000.00
$459,090.00
$677,090.00
51%
Round 7
Total
TWIC
Infrastructure and
Implementation
$2,283,090.00
$1,221,000.00
$407,000.00
$655,090.00
$1,062,090.0
0
47%
Source of Funds
The funds for this capital project were partially included under committed CIP #C8000165,
Seaport Security Grant Round 7 in the 2011 Plan of Finance. The amount not included,
approximately $897,000, will be available due to expected cost savings in other committed 2011
Plan of Finance projects (e.g. #C800121 T18 S. End Fendering). The Port of Seattle portion of
these project costs will be funded from the General Fund.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
March 30, 2011
Page 4 of 5
Financial Analysis Summary:
CIP Category
Compliance
Project Type
Health, Safety and Security
Risk adjusted Discount rate
N/A
Key risk factors
Key risk factors include potential cost overruns due to project
complexity or unidentified additional changes needed
Project cost for analysis
$953,000
Business Unit (BU)
Seaport Security
Effect on business
performance
This request will result in additional annual depreciation of
$190,600 for 5 years.
IRR/NPV
NPV: ($953,000)
ECONOMIC IMPACTS AND BUSINESS PLAN OBJECTIVES:
Proceeding with this project, in compliance with Federal Security Regulations, allows the Port to
maintain operations necessary for the cruise and other TWIC regulated areas for which the Port
is responsible.
STRATEGIC OBJECTIVES:
This project supports the Port strategy to “Ensure Airport and Seaport Vitality” through
enhancing safety by providing an additional level of security to the Port of Seattle Waterfront
operations.
ENVIRONMENTAL SUSTAINABILITY AND COMMUNITY BENEFITS:
The original project included extensive trenching for the installation of the infrastructure for
electrical and telecommunications. During design, wireless connectivity for the readers and
cameras was proposed and the trenching for the telecommunications installation was greatly
reduced. As a result, the risk of disturbing contaminated ground soil is minimized.
If contaminated material is found, it will be removed and replaced with “clean” fill.
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS:
Alternative #1. Complete the construction for the automation of the TWIC regulated areas.
This alternative allows the Port to maintain compliance with the current and future Federal
Regulations and reduces cost to Port operations by limiting or eliminating the need for
manned guard gates at the TWIC regulated areas. This is the preferred alternative.
Alternative #2. Do not move forward with the construction for the TWIC areas. This
alternative would require that guards remain at all TWIC areas when they are in operation
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
March 30, 2011
Page 5 of 5
and would not meet the future TWIC requirements. The Port would be required to refund
expenses to date to Federal Emergency Management Agency (FEMA). This is not the
preferred alternative.
Alternative #3. Delay construction until automation is required at the TWIC areas. Grant
funding would not be available at a later date so the full cost of construction would fall to the
Port. Additionally, the Federal Security requirements can change with very little notice and
the Port may be required to expedite the construction process to meet a short deadline
resulting in even greater costs. The Port would be required to refund expenses to date to
FEMA. This alternative is not the preferred alternative.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS:
On November 20, 2007, the Commission authorized the acceptance, use and disbursement of
Round 7 Grant Funding.
On July 7, 2009, the Commission authorized funding for design, TWIC integration and
configuration, and perform interagency training and exercises.
