PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
5f
Date of Meeting
May 3, 2011
DATE: April 26, 2011
TO: Tay Yoshitani, Chief Executive Officer
FROM: David Soike, Director, Aviation Facilities and Capital Program
Wayne Grotheer, Director Aviation Project Management
SUBJECT: Communications Cabling Additions Project (CIP# C800331)
This Request: $377,000 Source of Funds: Airport Development Fund
Total Project Budget: $377,000 Jobs Created: 2
Sales Tax Paid: $9,000
ACTION REQUESTED:
Request Commission authorization for the Chief Executive Officer to authorize Port
Construction Services (PCS) to self-perform the work in conjunction with small works
contractors and issue small works contracts in support of the Communications Cabling Additions
Project at Seattle-Tacoma International Airport (Airport). This authorization is for $377,000 of a
total estimated project cost of $377,000.
SYNOPSIS:
This memorandum requests authorization for PCS to self-perform the work and use small works
contractors to perform the work required to add communications cabling in the Main Terminal
and Central Terminal. This is in support of the continued demand for communications
infrastructure. This project will provide basic infrastructure to support future tenant future needs
for network and voice connectivity and will provide a reliable communication cable pathway to
ensure Port and Tenant operations.
BACKGROUND:
Rapid growth in the use of both fiber and copper systems related to baggage monitoring and
security cameras has occurred over the last five years. In addition, the communications fiber and
copper cabling capacity has been used up by airlines, capital projects, and airport tenants. There
is little or no remaining available capacity in critical areas. This poses a limitation on continued
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
April 26, 2011
Page 2 of 4
growth for tenants and the Airport. It has also created potential single point failures for critical
systems and networks due to the inability to provide redundant pathways.
PROJECT DESCRIPTION/SCOPE OF WORK:
Project Objectives:
This project will provide additional communication cabling in the Central Terminal and the Main
Terminal in order to support continued demand for communications infrastructure. This project
will provide basic infrastructure to support future tenant needs for network and voice
connectivity, and will provide a timely response to tenant and airline needs.
Scope of Work:
The project will provide additional communication cabling in the Central Terminal and the Main
Terminal. The scope will include standard tenant demarcation packages that improve the existing
fiber and copper cabling capacity in areas that are in short supply. The new cabling will follow
these Cable Infrastructure Backbone pathways: MDR-1 to TC-MT-1-BR; MDR-1 to TC-MT-2-
BR; MDR-1 to TC-MT-3-BR; MDR-1 to TC-MT-4-BR; MDR-2 to TC-RN; TC2N and TCBN;
MDR-2 to TC-RS and TC2S.
STRATEGIC OBJECTIVES:
The Airport needs to stay ahead of the demand for cable. A demand driven allocation of cable
pathway will not work due to material lead time and installation. The Airport must stay ahead of
the need for cable pathway, and avoid causing delays while the projects wait for new cable to be
installed. Tenants cannot be allowed to install long stretches of fiber and copper cabling specific
to their projects as this would result in communication rooms filled with cable and clogged
pathways. By providing cable, the Airport has managed the resources that provide a well-
structured and organized cable-system-plant.
FINANCIAL IMPLICATIONS:
Budget/Authorization Summary
Original Budget
$ 377,000
Budget Increase
$ 0
Budget Transfers
$ 0
Revised Budget
$ 377,000
Previous Authorizations
$ 0
Current request for authorization
$ 377,000
Total Authorizations, including this request
$ 377,000
Remaining budget to be authorized
$0
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
April 26, 2011
Page 3 of 4
Source of Funds:
This project, CIP # C800331, is included in the 2011 – 2015 capital budget and plan of finance
as a committed project. The funding source for this project will be the Airport Development
Fund.
Financial Analysis Summary
CIP Category
Enhancement
Project Type
New
Risk adjusted Discount Rate
N/A
Key risk factors
N/A
Project cost for analysis
$377,000
Business Unit (BU)
Terminal
Effect on Business Performance
NOI after depreciation will increase
IRR/NPV
N/A
CPE Impact
Less than $0.01 in 2012, but no change
compared to business plan forecast as this
project was included.
As a cost recovery project, traditional financial analysis measures, such as net present value
(NPV) and internal rate of return (IRR), are not meaningful.
ECONOMIC IMPACTS:
This project proposes a common pathway for all tenants and effectively uses the resources and
hence the project cost is reduced. This reduces the cost and time of tenant and Airport
improvements.
Project Cost Breakdown
This Request
Total Project
Construction costs (PCS self perform; small
works contractors)
$245,000
$245,000
Sales tax
$9,000
$9,000
In-house design – as builts only
$11,000
$11,000
Aviation PMG and other soft costs
$90,000
$90,000
Reserve Funds
$22,000
$22,000
Total
$377,000
$377,000
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
April 26, 2011
Page 4 of 4
ENVIRONMENTAL SUSTAINABILITY/COMMUNITY BENEFITS:
Use of a common pathway reduces the resources needed and hence creates a sustainable
environment. The cost of the project is reduced and the savings can be used for other purposes.
TRIPLE BOTTOM LINE SUMMARY:
This project helps the environment by having a common pathway and thereby reducing the
amount of material used if each tenant builds their own pathway. This approach reduces the cost
of capital investment needed by tenants and thus supports the tenants, ultimately helping
passengers and the community.
PROJECT SCHEDULE:
The project cabling work is expected to be complete in March 2012.
ALTERNATIVES CONSIDERED/RECOMMENDED ACTION:
Alternative 1: Systematically add additional communications cabling to key areas of the Airport
to ensure that the network backbone remains in robust condition. This project will eliminate the
need to shut down the baggage system on a repetitive basis in order to add small amounts of
cable, which fill the cable trays inefficiently. By auditing the existing and anticipated need
throughout the airport on a regular basis, we can eliminate wasted cable tray usage. This is the
recommended alternative.
Alternative 2: Patch and repair as needed, running additional conduit or open tray and interrupt
baggage systems throughout the Airport. This is not the recommended alternative.
Alternative 3: Do nothing and risk failure due to choke points and inability to provide network
connectivity to our customers. This is not the recommended alternative.
PREVIOUS COMMISSION ACTION:
None.
