COMMISSION AGENDA MEMORANDUM Item No. ACTION ITEM Date of Meeting DATE: March 18, 2019 TO: Stephen P. Metruck, Executive Director FROM: Krista Sadler, Director Technology Delivery 6d March 26, 2019 SUBJECT: Airport Subway Train Display System Project Completion (#C800782) Amount of this request: Total estimated project cost: $285,000 $3,287,000 ACTION REQUESTED Request Commission authorization for the Executive Director to amend the current approved authorization for the Airport Subway Information Display Enhancement project by $285,000 for a total project cost not to exceed $3,287,000. EXECUTIVE SUMMARY On August 9, 2016, the Commission approved the Airport Subway Information Display Enhancement project to procure and install a fully integrated digital signage system for inside subway cars and outside in stations, capable of displaying variable messages in multiple languages, video, and graphics for way-finding. A product was selected through a competitive procurement and the new system has been installed and is in-use in most train cars and train stations. Only the North Satellite and Concourse B train station display installations remain to complete the project. The new system is currently configured for English plus seven languages that rotate on a continuous basis, providing critical visual and voice communications to our diverse customer population. Current display technology enables bright, vibrant signage improving way-finding and flexibility to incorporate service messages and changing routes. Additional connectivity requirements, unique display fabrications, and limited work intervals have increased costs requiring an additional $285,000 to complete the project. The budget was transferred from the Aeronautical Allowance C800753 resulting in no net change to the Aviation Division Capital budget. Template revised January 10, 2019. COMMISSION AGENDA - Action Item No. 6d Meeting Date: March 26, 2019 Page 2 of 4 JUSTIFICATION Good customer service is an important Airport strategy and clear way-finding, safety information, and subway status have a big impact on our traveling public. With record increases in passengers expected over the next several years, the efficient movement of passengers through the airport becomes critical. DETAILS Scope of Work This authorization will allow for the completion of connectivity and display installation in the North Satellite and Concours B Train Stations as well as provide for additional translation services. Schedule Activity Commission Authorization for Amendment Installation Completion In-use date 2019 Q1 2019 Q2 2019 Q2 Cost Breakdown This Request Total Project $20,000 $40,000 $20,000 $205,000 $0 $285,000 $2,102,000 $158,000 $170,000 $672,000 $185,000 $3,287,000 Hardware/Software/Vendor Services ICT and Aviation Maintenance Labor Design Construction State & Local Taxes (estimated) Total ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 - Do not complete signage installation Cost Implications: $150,000 Annually Pros: (1) Cons: (1) (2) (3) Capital costs are available for other efforts. Inconsistent wayfinding will result in negative impact to passenger experience. Less flexibility to display customer service messaging and additional way-finding. Maintenance will need to support two systems, continuing to support an aging system in some areas, as well as the new system in other areas. Operations will need to update multiple systems when updating key customer service and safety messages. This will delay information and increase the risk of error. Template revised September 22, 2016; format updates October 19, 2016. COMMISSION AGENDA - Action Item No. 6d Meeting Date: March 26, 2019 Page 3 of 4 This is not the recommended alternative. Alternative 2 - Authorize additional funding to complete the project. Cost Implications: $285,000 Pros: (1) (2) Cons: (1) The customer service and safety benefits of an enhanced display system with audio integration is available in the North Satellite and Concourse B train stations. An aging display system is decommissioned reducing maintenance and operations costs and risk of service interruption. Additional capital funds are not available for other efforts. This is the recommended alternative. FINANCIAL IMPLICATIONS Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Original estimate Previous changes - net Current change Revised estimate $2,570,000 $350,000 $285,000 $3,205,000 $0 $82,000 0 $82,000 $2,570,000 $432,000 $285,000 $3,287,000 AUTHORIZATION Previous authorizations Current request for authorization Total authorizations, including this request Remaining amount to be authorized $2,920,000 $285,000 $3,205,000 $0 $82,000 0 $82,000 $0 $3,002,000 $285,000 $3,287,000 $0 Annual Budget Status and Source of Funds This project, CIP C800782, was included in the 2019-2023 capital budget and plan of finance as a business plan prospective project with a total capital budget of $2,920,000. The budget increase of $285,000 was transferred from the Aeronautical Allowance C800753 resulting in no net change to the Aviation Division capital budget. Financial Analysis and Summary Project cost for analysis Business Unit (BU) Effect on business performance (NOI after depreciation) $3,287,000 Terminal Building NOI after depreciation will increase Template revised September 22, 2016; format updates October 19, 2016. COMMISSION AGENDA - Action Item No. 6d Meeting Date: March 26, 2019 IRR/NPV (if relevant) CPE Impact Page 4 of 4 N/A Less than $0.01 in 2019 Future Revenues and Expenses (Total cost of ownership) Annual support costs are not expected to change as a result of the project amendment. ATTACHMENTS TO THIS REQUEST None PREVIOUS COMMISSION ACTIONS OR BRIEFINGS July 11, 2017 - The Commission authorized a project and contract amendment in the amount of $482,000 to support additional product features. August 9, 2016 - The Commission authorized project funds and contract execution in the amount of $2,570,000. Template revised September 22, 2016; format updates October 19, 2016.