Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6h
ACTION ITEM
Date of Meeting
December 10, 2019
DATE: November 25, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Jeffrey Brown, Director Aviation Facilities and Capital Programs
Wayne Grotheer, Director, Aviation Project Management
SUBJECT: Building Controls Upgrade (CIP #C800944) – Design
Amount of this request:
$2,950,000
Total estimated project cost:
$10,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) prepare design and
construction bid documents for the Building Controls Upgrade Project at Seattle-Tacoma
International Airport; and (2) use port crews for preconstruction activities. The amount of this
request is $2,950,000 of an estimated total project cost of $10,000,000.
EXECUTIVE SUMMARY
The building control system regulates and controls critical airport terminal building
environmental features such as temperature, humidity, and air exchanges. This project will
replace approximately 100 obsolete building control panels that are installed throughout
concourses B, C, and D. This project will also improve communications and data throughput
allowing for improved system performance and future system expansion.
The estimated cost to complete this project has increased significantly from the estimate
included in the 2020-2024 capital budget and plan of finance due to cost increases on the
original scope and additional scope to double the number of control panels and to replace
communications copper cable backbone with fiber optic cable.
JUSTIFICATION
The panels that will be replaced as part of this project are integral components in the Direct
Digital Control (DDC) system throughout the airport. The DDC system was installed circa 1990s
and is responsible for monitoring and controlling mechanical equipment at the airport. The
equipment includes the Heating, Ventilation, and Cooling (HVAC), chilled water, hot water,
preconditioned air, and natural gas distribution.
COMMISSION AGENDA – Action Item No. __6h__ Page 2 of 5
Meeting Date: December 10, 2019
Template revised June 27, 2019 (Diversity in Contracting).
The existing control panels have reached obsolescence; the components are experiencing
intermittent failures and replacement parts are difficult to obtain as they are no longer
manufactured. Any operational loss of the control panels has a direct effect on the operation of
the airport and a negative impact to customer experience. Since the installation of the DDC
system, there have been significant improvements in control panel technologies that increase
the reliability, reduce the size of equipment, and improve the processing capacity. This project
will take advantage of the latest technology and give the port the opportunity to rebalance the
panels to provide space for planned future projects. The control panels will be purchased under
the sole-source agreement with Siemens 2015-013.
The DDC system is connected and controlled on an independent copper cable backbone that
keeps it isolated from any outside connections. This network has reached its performance
limitations. During heavy demand periods, the system has increased latency, resulting in slow
adjustment to the system needs. At times, if the data transfer requirement exceeds the
network capacity, data can be lost, resulting in disruptions of service. This existing
communications backbone cabling will be upgraded to fiber optic cable allowing for higher data
throughput, increased reliability, and future expansion.
Diversity in Contracting
The project staff, in coordination with the Diversity in Contracting department, have set a seven
percent woman- and minority-owned business enterprise (WMBE) aspirational goal for this
design contract.
DETAILS
This project will replace 100 obsolete control panels that are distributed throughout
Concourses B, C, and D. The existing equipment and field control points will remain in place and
be migrated to the new panel hardware. As panels are being updated, the whole panel load and
spacing will be reviewed, and configured where possible to add capacity for future expansions.
A fiber backbone will be installed in parallel with the existing copper backbone. Planned
shutdowns will transition the network off the copper and onto the new fiber backbone. The
obsolete copper backbone will be removed. This fiber network will connect the existing fiber on
Concourse A and Main Terminal, with Concourses B, C, and D. Both the north and south
satellites already have fiber runs in place that connect to the DDC system.
Scope of Work
The scope of work for this project includes:
(1) Replacing 100 obsolete control panels.
(2) Connecting the new control panels to the DDC system.
(3) Provide wiring, testing, commissioning, and associated equipment for a fully
functional system.
COMMISSION AGENDA – Action Item No. __6h__ Page 3 of 5
Meeting Date: December 10, 2019
Template revised June 27, 2019 (Diversity in Contracting).
(4) Salvage components from the obsolete control panels and add these parts to the
port’s spare parts inventory.
(5) Install a new fiber backbone to connect the new and previously upgraded control
panels to the DDC network.
(6) Provide fiber optic wiring, terminations, testing, commissioning, and associated
equipment for a fully functional system.
Schedule
Activity
2020 Quarter 3
2021 Quarter 2
2021 Quarter 3
2022 Quarter 3
Cost Breakdown
This Request
Total Project
Planning and Design Phase
$2,950,000
$3,000,000
Construction and Closeout Phase
$0
$7,000,000
Total
$2,950,000
$10,000,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not proceed with the replacement project.
Cost Implications: $22,000 would need to be expensed
Pros:
(1) No capital investment required at this time.
Cons:
(1) Panel failure will have a negative effect on the passenger and tenant experience at the
airport.
(2) Future projects will be limited on expansion capabilities until the panels and fiber
network are replaced.
(3) Future projects will be required to replace panels, adding time, complexity, and cost to
the scope.
(4) Replacing panels on a project-by-project basis will increase the unit cost of the panel
replacement.
(5) The fiber network will not be extended into Concourses B, C, and D.
(6) The issue of intermittent data loss will not be addressed.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. __6h__ Page 4 of 5
Meeting Date: December 10, 2019
Template revised June 27, 2019 (Diversity in Contracting).
Alternative 2 – Replace the obsolete control panels only.
Cost Implications: $6,500,000
Pros:
(1) Lower capital investment.
(2) Replaces the obsolete equipment and failing control panels.
Cons:
(1) The existing copper backbone will limit the expansion capabilities of the control panels
and the ability to add additional panels required by future projects.
(2) The fiber network will not be extended into Concourses B, C, and D.
(3) The issue of intermittent data loss will not be addressed.
(4) Not extending the fiber network will limit the technological gains of the upgraded
control panels.
This is not the recommended alternative.
Alternative 3 – Replace the obsolete control panels and install the fiber backbone.
Cost Implications: $10,000,000
Pros:
(1) Replaces obsolete equipment and failing control panels.
(2) Extends the fiber network into Concourses B, C, and D.
(3) Provides infrastructure for future projects with greater data requirements and future
panels.
(4) Mitigates existing data capacity issues on the copper backbone.
Cons:
(1) This is the highest capital investment.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$4,976,000
$128,000
$5,104,000
Current change
$4,903,000
($7,000)
$4,896,000
Revised estimate
$9,879,000
$121,000
$10,000,000
AUTHORIZATION
Previous authorizations
$50,000
0
$50,000
Current request for authorization
$2,829,000
$121,000
$2,950,000
Total authorizations, including this request
$2,879,000
$121,000
$3,000,000
Remaining amount to be authorized
$7,000,000
$0
$7,000,000
COMMISSION AGENDA – Action Item No. __6h__ Page 5 of 5
Meeting Date: December 10, 2019
Template revised June 27, 2019 (Diversity in Contracting).
Annual Budget Status and Source of Funds
This project, CIP C800944, was included in the 2020-2024 capital budget and plan of finance
with a budget of $4,976,000. A budget increase of $4,903,000 was transferred from the
Aeronautical Reserve CIP (C800753) resulting in zero net change to the Aviation capital budget.
The funding source will be the Airport Development Fund and future revenue bonds.
The original project request submitted in 2016 only included 49 panels that had reached
obsolescence. From that initial request an additional 50 panels have been identified as needing
replacement. Additionally, the current copper backbone has now reached its data limitations.
The project cost increase is due to the delay in executing the original 2016 project, the increase
of 50 additional obsolete panels, and the need for increased data on the backbone.
Financial Analysis and Summary
Project cost for analysis
$10,000,000
Business Unit (BU)
Terminal Building
Effect on business performance
(NOI after depreciation)
NOI after depreciation will increase due to inclusion of
capital (and operating) costs in airline rate base.
IRR/NPV (if relevant)
N/A
CPE Impact
$0.03 in 2024
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None