PORT OF SEATTLE

MEMORANDUM

DATE: April 27, 2011

Internet Services at Fishermen’s Terminal

Amount of this Request: $00.00 Source of Funds: N/A

Total Project Cost: $00.00

ACTIONS REQUESTED:

Request Commission authorization for the Chief Executive Officer to execute a ten-year license

agreement, substantially as drafted in Attachment 1 and according to the terms laid out in this

memorandum, with Comcast Cable Communications Management, LLC, to provide high-speed

determined that the facility met their payback model and is proposing to cover all of the costs of

installation and future maintenance. Proposed construction costs are over $120,000. Comcast

proposes to start by bringing service to the three main office buildings: Fishermen’s Center (C-

15), West Wall (C-3) and the Nordby Building (C-2). The capacity to provide service to all of

the upland buildings will be included in the initial installation and will be reviewed in the future.

These three buildings have the highest customer need and use and are currently 95% occupied.

The proposal has been reviewed by Port Legal, Risk, Engineering, Project Management and

Maintenance departments. Comcast’s construction plans are substantially complete. Once the

agreement is executed, they will move forward with securing the appropriate permits. This

license is non-exclusive and does not preclude any other service provider from bringing its

customers without an obligation to serve our customers represents adequate consideration to

support the agreement from a legal standpoint.

Failure to proceed with the proposed license would negatively affect the ability of Fishermen’s

Terminal to attract new tenants and retain existing ones. Existing or prospective tenants with

computer or data-heavy needs would be unable to conduct business effectively without the

availability of higher speed internet. Several tenants have already expressed to the Port that they

will not be able to renew their leases without faster internet speed, and one tenant left the West

Wall Building in 2010 because of its inability to conduct business with the available internet

options.

our current customers is to get a dedicated T1 line from one of the providers that would give

them 1.5 Megabits per second (Mbps) for approximately $450.00 per month. A dedicated T1

line splits the 1.5 mbps between all employees in a given office. This is an expensive option and

for many of the smaller tenants cost-prohibitive.

A typical package from Comcast for a small business owner is 10 Mbps download and two Mbps

upload. A medium sized business (25 + employees) typically uses 20 Mbps download and 10

Mbps upload. Heavy users, such as digital media companies, would require even more. The

system that Comcast proposes to bring in will offer phone, internet and video capabilities.

As an example, if this infrastructure existed at Fishermen’s Terminal, one of our newer tenants,

Maritime Training Services, which specializes in video sales, could get 22 Mbps and two phone

space in the Central Business District, which does have this service, and has been offering low

rates and various concessions to attract new tenants.

TERMS OF THE PROPOSED LEASE:

The major elements of the proposed term lease are outlined below:

Term: Ten years commencing on date of permit approval

Use: High-speed internet service provided for sale to tenants at

Fishermen’s Terminal

Port Improvements: N/A

Insurance/Liability: $2 million General Liability.

FINANCIAL ANALYSIS:

Budget/Authorization Summary:

Source of Funds:

N/A

Financial Analysis Summary:

ALTERNATIVES CONSIDERED/RECOMMENDED ACTION:

OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST:

License Agreement.

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS:

None.