Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8c
ACTION ITEM
Date of Meeting
March 14, 2023
DATE: March 3, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Keri Stephens, Director, AV Facilities & Capital Programs
Eileen Francisco, Director Aviation Project Management
SUBJECT: Communication Enhancement – Construction Authorization C801161
Amount of this request:
$7,840,000
Total estimated project cost:
$11,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) advertise, award, and
execute a major works construction contract for the Communication Enhancement Project at
Seattle-Tacoma International Airport, and (2) use Port of Seattle Crews for construction activities.
The amount of this request is $7,840,000 which will fully authorize the estimated project budget
of $11,000,000.
EXECUTIVE SUMMARY
The Airport is continuing to grow and upgrade the capabilities and services that are offered to
travelers, tenants, and employees. As projects are completed, there is a need for faster and more
data connections to support the expansion. The fiber connections that will be added by this
project will support the growing need and allow for smooth transitions as the Port continues to
optimize its layout and connection plans. Some of the systems these connections will support are
WIFI access points, people counter sensors for check points, airline check in and gate operations,
security cameras, Airport Dining and Retail business transactions, and life safety
communications.
JUSTIFICATION
The Communication Enhancement (CE) project will install new fiber connections between the
Main Distribution Rooms (MDR) and the communications Equipment Rooms. The fiber will be
installed using the existing Communications Infrastructure Backbone System (CIBS) that had
established the equipment room in the early 2000’s. The equipment room connections were
reviewed, and the rooms identified as critical (100% capacity) and high priority (≥ 85% capacity)
COMMISSION AGENDA – Action Item No. 8c Page 2 of 4
Meeting Date: March 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
were selected for the new connections. The project will also be installing specialized 2-hour fire
rated cables between the MDRs and equipment rooms identified to support life safety
communications.
The last major telecommunication infrastructure upgrade was completed in the early 2000’s with
the installation of the CIBS, which established the MDR and outlying communication equipment
rooms. The CIBS project also installed trays specifically for communications cabling between the
rooms. Since the completion of CIBS, the installed cabling has been near fully allocated to Port
processes and tenant needs.
This project will install new fiber optic cabling within the existing CIBS cable trays to establish
new connections for use. During the design phase the team inspected the fill of the tray system
and determined that some additional tray and conduit sections are needed to add the planned
fiber and leave space for future growth. The project will also install the equipment needed to
terminate and test the fiber connections for immediate use.
Diversity in Contracting
The project staff, in coordination with the Diversity in Contracting Department, have set a 5%
woman and minority business enterprise (WMBE) goal for the Communication Enhancement
project.
DETAILS
Scope of Work
Communications Enhancement:
(1) Design services will evaluate the Port identified communication equipment rooms
needing additional connections.
(2) Design services will provide communication and electrical drawings required for
installing new connections between MDR and selected communication equipment
rooms.
(3) Construction services will procure and provide the fiber optic cabling and termination
connectors to install and test the cables for connectivity.
(4) Construction services will install cabling innerducts and fiber cables within the existing
CIBS infrastructure.
(5) Construction services will install the fiber optic patch panels to accommodate the new
fiber strands. Each strand will be terminated and tested for connectivity.
COMMISSION AGENDA – Action Item No. 8c Page 3 of 4
Meeting Date: March 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Schedule
Activity
Bid Advertisement
Construction start
In-use date
Cost Breakdown
This Request
Total Project
Design
$0
$3,160,000
Construction
$7,840,000
$7,840,000
Total
$7,840,000
$11,000,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Cancel or defer the project.
Cost Implications: approximately $450,000 would need to be expensed.
Pros:
(1) No capital investment currently.
Cons:
(1) Deferred projects are subject to escalation costs.
(2) Risk of failing infrastructure and data capacity limitations.
(3) Future and current projects may require additional time and budget to complete
because they will need to install additional connections. If no connections are available
at the nearest communication equipment room, project will need to bring connections
from the project space back to a MDR. This is inefficient and consumes the remaining
fiber pathway which is space constrained by other systems installed in the ceiling space.
This is not the recommended alternative.
Alternative 2 – Proceed with construction of designed scope.
Cost Implications: $11,000,000
Pros:
(1) This work will prioritize rooms that are at or near capacity and connections are needed
for planned expansions and renovations.
(2) The design will install a high fiber strand count cables to efficiently use the existing CIBS
tray space and add tray pathway where capacity is used up.
(3) This work provides available connections for both current and future projects.
(4) This work will extend the 2-hour fire rated communication network to 28
communication equipment rooms for life safety systems.
COMMISSION AGENDA – Action Item No. 8c Page 4 of 4
Meeting Date: March 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) Highest capital investment.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$11,000,000
$0
$11,000,000
AUTHORIZATION
Previous authorizations
$3,160,000
0
$3,160,000
Current request for authorization
$7,840,000
0
$7,840,000
Total authorizations, including this request
$11,000,000
0
$11,000,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project, CIP C801161, was included in the 2023-2027 capital budget and plan of finance with
a budget of $11,000,000. The funding source will be Airport Development Fund (ADF) and
revenue bonds.
Financial Analysis and Summary
Project cost for analysis
$11,000,000
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 2026
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
July 27, 2021 – The Commission authorized $3,000,000 in design funding.