Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8d
ACTION ITEM
Date of Meeting
September 12, 2023
DATE: August 31, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Keri Stephens, Director AV Facilities & Capital Programs
Eileen Francisco, Director Aviation Project Management
SUBJECT: Telecommunication Meet Me Room Fiber Construction
Amount of this request:
$ 7,997,000
Total estimated project cost:
$21,700,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) advertise, award, and
execute a major works construction contract for the Telecommunication Meet Me Room Fiber
project at Seattle-Tacoma International Airport (Airport), and (2) use Port of Seattle Crews for
construction activities. The amount of this request is $7,997,000 which will fully authorize the
estimated project budget of $21,700,000.
EXECUTIVE SUMMARY
The Telecommunication Meet Me Room (MMR) will establish a new secure connection point for
the telecommunication entering and exiting Airport. The work included in this authorization will
be installing fiber optic cables between the Airport’s Communication Infrastructure Backbone
System (CIBS) and the MMR facility. These fibers will allow connections from service providers in
the MMR to be connected to the Main Distribution Rooms (MDR) and distributed throughout the
Airport to the end users and systems.
JUSTIFICATION
The MMR building and new connection will serve as the gateway for the Airport to communicate
to the outside world with internet, telephone, and data systems. Some of the data systems
include airline check-in system, baggage handling systems, departure control system, and mobile
applications.
The project will construct the facility on the south end of the airport that is near existing
connection points for our service providers and the Airport infrastructure. The building will have
secure spaces for the Port and Service Providers to house their equipment. A network of high-
speed fiber will connect the service providers’ equipment to the Port equipment and from there
COMMISSION AGENDA – Action Item No. 8d Page 2 of 5
Meeting Date: September 12, 2023
Template revised June 27, 2019 (Diversity in Contracting).
be transferred onto the Port’s existing Communication Infrastructure Backbone System (CIBS).
This project will provide a space for the legacy service provider to relocate their equipment to a
more serviceable and secure area outside of the Airport’s baggage operation area and to
negotiate a new lease agreement.
The project will relocate and upgrade the legacy connections from a copper to high-speed fiber
and install two pathways to connect the MMR to the Main Distribution Rooms (MDR). The two
pathways will provide data redundancy and resiliency to the existing connections. The pathways
established will have spare capacity for future fiber expansions as the data needs grow at the
Airport.
Diversity in Contracting
The project staff, in coordination with the Diversity in Contracting Department, have set a 10%
woman and minority business enterprise (WMBE) goal for the MMR - Fiber project.
DETAILS
The work detailed in this memo is to install the fiber connections between the Airport three MDRs
and the MMR building. This work will also include connection between the Service provider space
and the Airport secured space.
Scope of Work
The Telecommunication Meet Me Room Fiber project will consist of:
(1) Installation of cable trays, conduit, and supports to create a primary and secondary
pathway between the Main Distribution Rooms and the MMR facility for fiber optic
cables.
(2) Installation of fiber optic cable between the MDR 1, 2 and 3 to the MMR building.
(3) Installation of MMR Building internal backbone to connect the Service Providers to the
Airport Infrastructure.
(4) Install passive and active equipment needed to transport services from the providers to
the airport end users.
Schedule
Activity
Commission construction authorization
2023 Quarter 3
Advertisement
2024 Quarter 1
Construction start
2024 Quarter 2
In-use date
2025 Quarter 4
COMMISSION AGENDA – Action Item No. 8d Page 3 of 5
Meeting Date: September 12, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Cost Breakdown
This Request
Total Project
Design
$0
$4,173,000
Construction
$7,997,000
$17,527,000
Total
$7,997,000
$21,700,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not proceed with project.
Cost Implications: Approximately $3,500,000 would need to be expensed.
Pros:
(1) No capital Investment.
Cons:
(1) New facility would not be connected to the Airport data infrastructure.
(2) Legacy connections would not be relocated and a future project would be needed to
relocate those connections.
(3) Additional scope, schedule, and cost would be required by future projects for temporary
connections. This could result in significant disruption of service.
(4) No new connections available for new services.
(5) No new fiber connections that are connected to the Airport infrastructure.
This is not the recommended alternative.
Alternative 2 – Construct the MMR Building and install both fiber pathways (Primary and
Secondary).
Cost Implications: $21,349,000
Pros:
(1) Construct a secure building for telecommunication interconnections.
(2) Relocate legacy connections to a permanent location.
(3) Provides space for new service providers to access the Airport infrastructure.
(4) Creates leverage for a lease agreement with the legacy provider.
(5) Upgrades copper connections to high-speed fiber.
(6) Installs a secondary pathway to connect the MMR to each MDR. This will add additional
connections and provide data redundancy.
(7) Installs a new tray pathway for future fiber expansions.
Cons:
(1) Capital Investment.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 8d Page 4 of 5
Meeting Date: September 12, 2023
Template revised June 27, 2019 (Diversity in Contracting).
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$5,100,000
$50,000
$5,150,000
Previous changes
$16,249,000
$301,000
$16,550,000
Revised estimate
$21,349,000
$351,000
$21,700,000
AUTHORIZATION
Previous authorizations
$13,352,000
$351,000
$13,703,000
Current request for authorization
$7,997,000
$0
$7,997,000
Total authorizations, including this request
$21,349,000
$351,000
$21,700,000
Remaining amount to be authorized
$0
$0
Annual Budget Status and Source of Funds
Telecommunication Meet Me Room Fiber Construction #C800762 is included in the 2023-2027
capital budget and plan of finance with a budget of $21,349,000. The funding sources will be the
Airport Development Fund and future revenue bonds. This project was presented to the airlines
at an Airport Airlines Affairs Committee and the Majority in Interest (MII) ballot was approved on
January 18, 2022.
Financial Analysis and Summary
Project cost for analysis
$21,700,000
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
$0.06 in 2025
Future Revenues and Expenses (Total cost of ownership)
This MMR facility will be monitored 24/7 with backup power. The maintenance cost is estimated
at $10,000 year.
ADDITIONAL BACKGROUND
The MMR project has been in discussion and design with the initial commission action in 2017.
The scope at that time only included connection to one of the main distribution rooms (MDR-3)
with new connections being established through this pathway and for legacy connections to be
moved later.
COMMISSION AGENDA – Action Item No. 8d Page 5 of 5
Meeting Date: September 12, 2023
Template revised June 27, 2019 (Diversity in Contracting).
The project team underwent a detailed review of the various locations available to house legacy
and future connections. The location at the south end of the airport is near existing connection
points for both the Airport and Service Providers. The installation of fiber connections were
limited at this stage to the minimum needed for basic functionality. The addition fiber
connections for growth and to connect to additional MDRs were being considered for inclusion
in other telecommunication work.
In July 2019, the project team advertised a design build package that included the construction
of the building and the connection to the existing Airport infrastructure. That bid resulted in one
bid with a cost greater than 35% over the engineers estimate. The bid was reviewed, with some
line items removed. While the team began the process of returning to commission for additional
funding when the project was put on hold and the deferred project list during the COVID-19
workplace disruption.
In September 2021 the project efforts were restarted, and scope increased to be fully functional
by including the fiber required to connect to each MDR (3 in total), sufficient circuits to migrate
the legacy connections, and to establish the connection infrastructure within the MMR facility
for future growth from existing or new suppliers. Through the restarted efforts the secondary leg
was identified and included to improve the Airport’s data redundancy.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
September 13, 2022 – The Commission authorized $2,000,000 and execute a design build
contract.
February 8, 2022 – The Commission authorized $7,725,000 for design and construction of the
MMR Building and authorized design of the MMR Fiber work project. Commission
authorization of the construction of the MMR fiber will be a future request.
September 26, 2017 – The Commission authorized $3,978,000 for design and construction.
