PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
5b
Date of Meeting
August 23, 2011
DATE: August 11, 2011
TO: Tay Yoshitani, Chief Executive Officer
FROM: Wayne Grotheer, Director, Aviation Project Management Group
Wendy Reiter, Director, Aviation Security and Emergency Preparedness
SUBJECT: Checkpoint Security Cameras at Seattle-Tacoma International Airport (CIP #
C800242).
Amount of This Request: $500,000 Source of Funds: Airport Development Fund
and TSA Grant
State and Local Sales Tax: $29,000 Total Project Costs: $500,000
ACTION REQUESTED:
Request Port Commission authorization for the Chief Executive Officer to: (1) proceed with
design, and (2) use Port crews to install new security cameras at security checkpoints at Seattle
Tacoma International Airport (Airport). The Port intends to purchase equipment and construct
this project using Port crews and small works contractors. This authorization is for a total
estimated project cost of $500,000, but the Port’s share of the cost is only $100,000, with the
balance of the cost being covered by a Transportation Security Administration (TSA) grant.
SYNOPSIS:
This project will install approximately 40 new cameras to view passenger screening areas at the
security checkpoints at the Airport. This project will also install additional data storage sufficient
for the new cameras. New cameras are necessary due to reconfiguration of the security
checkpoints and added data storage will increase retention of recorded images. TSA remaining
grant funding will cover approximately $400,000 of the project cost. The grant funding is only
available until the end of 2011.
BACKGROUND:
In 2010, the Port completed installation of a new digital video management system integrating
Closed Circuit Television Cameras (CCTV) at the Airport. This project, authorized in 2007, was
funded in part by the TSA through an Other Transaction Agreement (OTA). While the CCTV
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
August 11, 2011
Page 2 of 4
project is nearly complete, and most of its budget expended, the OTA retains remaining funds
which the TSA has made available for the installation of additional cameras. With recent
changes at the Airport’s passenger security checkpoints, the need to install additional cameras
has become more apparent. That combined with the pending expiration of the OTA has
accelerated this project – we need to complete the project this year to get federal grant funding
for approximately 80% of the project cost. This project will install new CCTV cameras at the
Airport’s security checkpoints. It will also procure additional data storage to improve image
retention.
PROJECT JUSTIFICATION:
With the recent installation of Advanced Imaging Technology (AIT) equipment and the
institution of new passenger screening processes by the TSA, the need to provide additional
video coverage of the security checkpoints is necessary. AITs are larger requiring that the
security checkpoints be reconfigured. This drives the need for additional camera coverage.
PROJECT SCOPE OF WORK AND SCHEDULE:
Scope of Work:
This project will install approximately 40 new cameras at the Airport’s security checkpoints. It
will also procure additional data storage devices to ensure sufficient storage of video images
captured by the new cameras.
Schedule:
The project schedule is as follows:
Commission Authorization August 2011
Construction start October 2011
Construction complete January 2012
FINANCIAL IMPLICATIONS:
Budget/Authorization Summary:
Original Budget
Budget Increase (Decrease)
Revised Budget
Previous Authorizations
Current request for authorization
Total Authorizations, including this request
Remaining budget to be authorized
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
August 11, 2011
Page 3 of 4
Budget Status and Source of Funds
This project (CIP # C800242) was included in the 2011-15 capital budget and plan of finance as
a business plan prospective project. The funding sources will include the Airport Development
Fund and a TSA grant. TSA grant funding will cover approximately $400,000 of the project
cost. This funding is only available until the end of 2011.
Financial Analysis
CIP Category
Revenue/Capacity Growth
Project Type
Business Expansion
Risk adjusted Discount rate
N/A
Key risk factors
N/A
Project cost for analysis
$500,000 (only $100,000 charged to airline rate
base)
Business Unit (BU)
Terminal
Effect on business performance
NOI after depreciation will increase.
IRR/NPV
N/A
CPE Impact
Increase CPE by less than $.01 in 2013, but no
change compared to business plan forecast as this
project was included.
Lifecycle Cost and Savings:
The lifecycle cost and savings of this project will be determined as an element of design.
Annual Operating and Maintenance Costs of $3,000 a year.
ENVIRONMENT AND SUSTAINABILITY:
There are no environmental or sustainability applications related to this project.
Project Cost Breakdown
This Request
Total Project
Construction costs
$276,000
$276,000
Port Purchased Equipment
$ 88,000
$ 88,000
Sales tax
$ 29,000
$ 29,000
Outside professional services
$ 47,000
$ 47,000
Aviation PMG and other soft costs
$ 60,000
$ 60,000
Total
$500,000
$500,000
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
August 11, 2011
Page 4 of 4
STRATEGIC OBJECTIVES:
The project ensures Airport vitality by providing enhanced security and asset renewal at the
checkpoints, which benefits our passengers, TSA and airline partners.
TRIPLE BOTTOM LINE SUMMARY:
This project will provide tangible benefits to the Security Checkpoints for increased security as
passengers enter the sterile areas. This project will provide for immediate review and diagnosis
of incidents and help facilitate solutions.
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS:
Alternative 1
Install approximately 40 new cameras and data storage to view passenger screening areas of the
security checkpoints. Use remaining TSA grant funding for approximately $400,000 of the
project cost before the grant expires at the end of the year. This is the recommended
alternative.
Alternative 2
Install a greater number of cameras to view security checkpoints. This alternative would take
longer to prepare a larger design package and would not be able to take full advantage of the
remaining TSA grant funding that expires at the end of the year. This is not the recommended
alternative.
Alternative 3 (Do Nothing)
This results in continued operation with the current security inconsistencies and limits our ability
to adequately secure the process with the existing insufficient cameras. This is not the
recommended alternative.
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST:
None.
PREVIOUS COMMISSION ACTION OR BRIEFING:
On September 11, 2007, the Port Commission authorized $2,000,000 for improvements to the
Airport closed circuit television video system at Seattle-Tacoma International Airport.