Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No. 10a
ACTION ITEM Date of Meeting September 9, 2025
DATE: August 29, 2025
TO: Stephen P. Metruck, Executive Director
FROM: Keri Stephens, Director, Aviation Facilities and Capital Programs
Eileen Francisco, Director, Aviation Project Management
SUBJECT: Utility Meter Networking (CIP# C801240) – Construction Authorization
Amount of this request: $31,175,000
Total estimated project cost:
$35,525,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) advertise, award, and
execute a major works construction contract; (2) execute related project change orders,
amendments, work authorizations, purchases, contracts, and take other actions necessary to
support and deliver the Utility Meter Networking project within the approved budget; and (3)
authorize use of Port of Seattle crews to support construction activities. This request is for
$31,175,000 of a total estimated cost of $35,525,000.
EXECUTIVE SUMMARY
The Port of Seattle's Aviation campus currently has approximately 750 electric meters distributed
throughout the facility. Most of these meters are outdated, nearing the end of their service life,
incompatible with centralized management software, and non-compliant with current energy
code requirements.
This project will replace many of the aging and failing meters with new standard electric meters
and connect them to a centralized software system capable of reading and storing meter data.
This upgraded, networked metering system will enable the Port to comply with current energy
codes, Clean Building Standards, and accurately bill tenants, and track the airport’s total energy
demand. This will provide critical data for improved utility management and planning.
JUSTIFICATION
The Port of Seattle must comply with the Washington State Energy Code for any permitted
alterations, repairs, or modifications. In addition, buildings over 20,000 square feet are subject
COMMISSION AGENDA – Action Item No. 10a Page 2 of 4
Meeting Date: September 9, 2025
Template revised June 27, 2019 (Diversity in Contracting).
to the Clean Buildings Performance Standard, which legally requires energy benchmarking,
energy management planning, and achieving specific energy efficiency targets. The Port is
required to begin compliance and reporting by June 1, 2026.
This project enables the Port to meet the requirements of the updated Washington State Energy
Code (WSEC 2018, Section C409), the Clean Buildings Performance Standard, and IEEE Standard
1547. As part of the project, many electrical meters across the Seattle Tacoma International
Airport campus will be upgraded to a new standard. These upgrades will improve system
performance and ensure a more stable and reliable power distribution network.
The new meters will provide staff with advanced tools for diagnosing and troubleshooting power
quality issues, enabling faster and more effective responses. They will also support efforts to
identify and prioritize energy efficiency improvements, in alignment with both the Clean
Buildings Performance Standard and the Port’s Century Agenda goal of becoming the greenest,
most energy-efficient port in North America.
Diversity in Contracting
The construction services to be procured have a 10% WMBE aspirational goal.
DETAILS
Scope of Work
Replace and network old and failing electric meters throughout the Aviation campus.
(1) The meters will be replaced (approximately 750 meters) with the Port standard meters.
a. The construction contractor will purchase meters and fiber infrastructure.
(2) Meters will also be networked into the existing Port of Seattle infrastructure.
a. New switches and fiber will need to be installed and purchased to connect some
of the new meters into the Port of Seattle network.
Schedule
Commission construction authorization 2025 Q3
Construction start 2026 Q1
In-use date 2027 Q3
Cost Breakdown This Request
Total Project
Design $0
$4,350,000
Construction $31,175,000
$31,175,000
Total $31,175,000
$35,525,000
COMMISSION AGENDA – Action Item No. 10a Page 3 of 4
Meeting Date: September 9, 2025
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Status Quo. Do not proceed with the project.
Cost Implications: Expense approximately $1,250,000 for design development costs.
Pros:
(1) Delays or defers capital investment.
Cons:
(1) Doesn’t update meters to meet current code requirements and pushes work off to the
future.
(2) Meters currently installed do not have easy replacements available, resulting in large
maintenance costs.
(3) Data analysis of current meters is cumbersome for billing and power quality evaluations.
This is not the recommended alternative.
Alternative 2 – Replace and network meters within the current budget.
Cost Implications: $35,525,000 in capital costs.
Pros:
(1) Provides networking for data analysis, load, demand evaluation, and usage billing for
tenants.
(2) Makes meters code compliant (WEC 2018, Clean Building Performance Standard, and
IEEE 1547).
(3) Meters will be easier to maintain being from one manufacturer.
Cons:
(1) Capital costs.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate
/Authorization Summary Capital
Expense
Total
COST ESTIMATE
Original estimate $35,525,000
$0
$35,525,000
AUTHORIZATION
Previous authorizations $4,350,000
0
$4,350,000
Current request for authorization $31,175,000
0
$31,175,000
Total authorizations, including this request $35,525,000
0
$35,525,000
Remaining amount to be authorized $0
$0
$0
COMMISSION AGENDA – Action Item No. 10a Page 4 of 4
Meeting Date: September 9, 2025
Template revised June 27, 2019 (Diversity in Contracting).
Annual Budget Status and Source of Funds
This project C801240 was included in the 2025-2029 capital budget and plan of finance with a
budget of $35,525,000. The funding sources will be the Airport Development Fund and revenue
bonds.
Financial Analysis and Summary
Project cost for analysis $35,525,000
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 $0.09 in 2028
Future Revenues and Expenses (Total cost of ownership)
As a result of this project, Aviation Maintenance may see a small decrease in preventative
maintenance support and less manual meter support. This is due to the new meters being more
reliable with spare parts readily available and now the data can be accessed virtually through the
fully networked system.
ATTACHMENTS TO THIS REQUEST
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
September 13, 2023 – Design Authorization
