Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8h
ACTION ITEM
Date of Meeting
February 14, 2023
DATE: February 7, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Krista Sadler, Directory Technology Delivery
SUBJECT: Port Headquarters WIFI Replacement (CIP #C801063)
Amount of this request:
$1,640,000
Total estimated project cost:
$2,500,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to advertise, award, and execute a
major public works contract and fund the construction phase of the P69 WIFI Replacement
Project in the amount of $1,640,000, and a total project authorization of $2,500,000.
EXECUTIVE SUMMARY
This project will replace the current P69 wireless network to ensure continuity of WIFI service,
deploy technology that adheres to Port security protocols, and provide full wireless coverage for
work and public spaces. The Port WIFI is used extensively throughout P69 by employees,
customers, and visitors to access internal Port systems and external internet. The network,
deployed over a decade ago, is at end-of-life, no longer receives security updates, and doesn't
provide the coverage or bandwidth needed to meet modern connectivity requirements.
The project is currently in the final design/construction documentation phase, with design
documents at the 100% stage of completion.
The capital project is included in the 2023 Capital Improvement Plan for a total cost of
$2,500,000. Recurring costs estimated at $11,600 per year will be budgeted in the ICT operating
budget beginning in 2023.
JUSTIFICATION
Replacing end-of-life hardware supports the Century Agenda goal of being a highly effective
public agency by proactively maintaining technology critical for Port operations.
COMMISSION AGENDA – Action Item No. 8h Page 2 of 4
Meeting Date: February 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
(1) The current wireless infrastructure is old, at risk of failure, and most components no longer
receive security updates.
(2) Requirements for wireless access have changed over the last decade and the current wireless
infrastructure is not able to accommodate the number and types of devices used by
employees and visitors, as well as the bandwidth required for more sophisticated
applications.
(3) As our workforce becomes more mobile, expectations for connectivity throughout P69
increase. The upgraded WIFI will include better coverage in areas without adequate
connectivity.
Diversity in Contracting
Diversity in Contracting has evaluated the planned construction activities and established a 6%
WMBE aspirational goal.
DETAILS
This project will replace the current WIFI at P69 with better coverage and bandwidth to meet
requirements for modern and emerging technology, install equipment that adheres to the Port’s
security protocols, and minimize the risk of failure due to age. Following is the scope of work for
this authorization.
Scope of Work
(1) Utilize IDIQ for a site survey to determine best wireless access point locations to provide
full coverage at P69.
(2) Utilize in-house communication infrastructure Design Engineer to develop designs for
installation of WIFI equipment and electrical and communication infrastructure.
(3) Procure WIFI and network equipment as needed to meet schedule expectations.
(4) Installation of communication room equipment by Port labor.
There are other Port sites with aging or insufficient wireless connectivity that may require
attention during this project. They will be addressed separately with operating funds or small
capital projects. More comprehensive needs at other sites will be evaluated for future projects.
Schedule
Activity
Construction start
2023 Q2
In-use date
2024 Q1
COMMISSION AGENDA – Action Item No. 8h Page 3 of 4
Meeting Date: February 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Cost Breakdown
This Request
Total Project
Equipment & Vendor Services
$0
$585,000
ICT and Information Security Labor
$156,000
$311,000
Design/Construction
$1,484,000
$1,604,000
Total
$1,640,000
$2,500,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Delay Replacing the WIFI Infrastructure at P69
Cost Implications: $0
Pros:
(1) Capital funds are available for other projects.
Cons:
(1) The existing WIFI is at risk of failure. This alternative will delay upgrades that may be
more costly to the business if service is disrupted.
(2) The existing WIFI is unable to have the latest security remediations installed resulting in
a security risk that is currently manually managed by Information Security personnel.
(3) The current WIFI infrastructure does not fully support an increasingly mobile workforce.
This is not the recommended alternative.
Alternative 2 – Proceed with construction to replace the WIFI Infrastructure at Port Headquarters
Cost Implications: $1,680,000
Pros:
(1) The wireless technology will adhere to the latest security protocols and the burden on
Information Security to manually monitor the WIFI will be reduced.
(2) WIFI will be available throughout the facility for employees and public and will not fail
due to aged hardware.
(3) Mobile business applications and devices will not experience degraded, interrupted, or
slow functionality.
(4) New cabling infrastructure will support modern WIFI equipment and future initiatives
precluded by current cable.
Cons:
(1) Capital funds are not available for other projects.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 8h Page 4 of 4
Meeting Date: February 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$2,500,000
$0
$2,500,000
AUTHORIZATION
Previous authorizations
$860,000
$0
$860,000
Current request for authorization
$1,640,000
$0
$1,640,000
Total authorizations, including this request
$2,500,000
$0
$2,500,000
Remaining amount to be authorized
$0
$0
$2,500,000
Annual Budget Status and Source of Funds
This project was included in the 2023 Capital Plan under committed CIP #C801063 Office Wi-Fi
Refresh in the amount of $2,500,000.
The project will be funded 81.3% with the Airport Development Fund and 18.7% General Fund.
Financial Analysis and Summary
Project cost for analysis
$2,500,000
$2,065,000 (Airport’s cost)
Business Unit (BU)
P69 Facilities and ICT
Effect on business performance
(NOI after depreciation)
Annual depreciation will increase by approximately
$250,000 based on an estimated 10-year life and annual
operating expenses are estimated to increase by $11,600
for recurring license/maintenance fees.
IRR/NPV (if relevant)
NA
CPE Impact
Less than $.01 in 2024
Future Revenues and Expenses
Annual recurring license and maintenance fees, estimated at $11,600 per year, will be budgeted
in the ICT annual operating budget beginning in 2023.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
August 10, 2021 – The Commission authorized funds for design, hardware, vendor services,
licensing, and maintenance in support of P69 WIFI and network services at P69.
