COMMISSION AGENDA MEMORANDUM Item No. ACTION ITEM Date of Meeting DATE : August 3, 2026 TO: Stephen P. Metruck, Executive Director FROM: Keri Stephens, Director AV Facilities & Capital Programs Krista Sadler, Director Technology Delivery 8c August 11, 2026 SUBJECT: SEA Meter Data Management System (MDMS) and License and Support Contract (CIP #C802153) Amount of this project request: Total estimated project cost: Estimated 10-year contract amount: $4,025,000 $4,025,000 $4,800,000 ACTION REQUESTED Request Commission authorization for the Executive Director to 1) proceed with the MDMS project; 2) execute contract(s) for the software license, hardware, and vendor implementation and support services and 3) use Port staff for implementation. The amount requested for project implementation under this authorization is $4,025,000. Total estimate for an up-to-ten-year contract that includes project expenditures is $4,800,000. EXECUTIVE SUMMARY In 2023, Commission authorized an Aviation project, Utility Meter Networking, to update and network-connect existing electrical meters to meet code requirements for electrical meter data analysis, load, and demand evaluation. The intent was to connect the meters to a Port-wide software solution that would centrally manage the meter data collection. This originally planned software solution was not successfully implemented, leaving a gap in our ability to automate the collection, analysis, and reporting of electrical meter data. This authorization is requested to procure and implement an MDMS to support Aviation utility metering operations. The MDMS will provide a centralized system to automate collection, validate, and manage meter data for both existing and future smart electrical meters across the airport campus. SEA will soon have over 2000 networked smart electrical meters that support critical operational, environmental, and financial functions including tenant billing, energy performance monitoring, energy consumption, and system health. It will improve billing accuracy, enhance operational visibility, and establish the foundational infrastructure needed for long-term energy management, analytics, and decarbonization initiatives. Template revised January 10, 2019. COMMISSION AGENDA - Action Item No. 8c Meeting Date: August 11, 2026 Page 2 of 4 The ten-year total cost of ownership is estimated at $5,825,000. The implementation project, estimated at $4,025,000, includes $4,000,000 capital and $25,000 for system training. This authorization also includes an up-to-ten-year contract that covers the project expenditures for equipment, software, and services, estimated at $3,000,000, as well as ten years of license and support costs estimated at $1,800,000. License and support costs will be budgeted in the Aviation Facilities operating budget. JUSTIFICATION Complete, real-time access to electrical meter data not only enables us to meet reporting requirements for several environmental initiatives but also provides timely meter reading for electrical billing, ability to identify power quality issues across the airport campus, evaluate load patterns to improve efficiency and direct investments, and delivers accurate data to support long-term planning and decarbonization strategies. Diversity in Contracting Project staff will work with the Diversity in Contracting Department to determine if a womenand-minority-owned business enterprise (WMBE) aspirational goal should be assigned. DETAILS Scope of Work (1) (2) Procure and implement an MDMS to automate collection, analysis, and reporting of electrical meter data. Integrate with connected electrical meters across the airport campus. Schedule Activity Commission authorization Procurement Complete Deployment Start Estimated Completion 2026 Quarter 3 2026 Quarter 4 2027 Quarter 3 2028 Quarter 1 Project Cost Breakdown This Request Total Project Vendor Costs Owner-Furnished Equipment Port Labor Costs Training Total $3,000,000 $240,000 $760,000 $25,000 $4,025,000 $3,000,000 $240,000 $760,000 $25,000 $4,025,000 Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8c Meeting Date: August 11, 2026 Page 3 of 4 ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 - Do not implement an MDMS Cost Implications: $0 Pros: (1) Cons: (1) (2) Capital resources are available for other efforts. No automated, efficient collection from over 2000 network connected electrical meters, negating the benefits of the Utility Meter Networking that replaced aging meters and provided connectivity. No centralized access to real-time data to improve operational awareness and support emissions reporting. This is not the recommended alternative. Alternative 2 - Implementation of an MDMS Cost Implications: $5,825,000 (Ten-year total cost of ownership) Pros: (1) (2) (3) Cons: (1) Automated data collection replaces time-consuming manual reads. This also shifts maintenance and utility team capacity to higher value responsibilities. The MDMS standardizes and validates meter data, improving billing accuracy, reducing disputes, and enabling timely tenant invoicing. Centralized access to real-time and historical data to improve operational awareness, supports emissions reporting, and strengthens the Port's ability to evaluate load patterns, infrastructure needs, and power quality issues across airport properties. Requires financial investment for procurement, implementation, and licensing. This is the recommended alternative. FINANCIAL IMPLICATIONS Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Original estimate $4,000,000 $1,825,000 $5,825,000 AUTHORIZATION Previous authorizations Current request for authorization Total authorizations, including this request Remaining amount to be authorized $0 $4,000,000 $4,000,000 $0 $0 $1,825,000 $1,825,000 $0 $0 $5,825,000 $5,825,000 $0 Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8c Meeting Date: August 11, 2026 Page 4 of 4 Annual Budget Status and Source of Funds This project, CIP C802153, SEA Meter Data Management System, was not included in the 2026- 2030 Capital Budget and Plan of Finance. The budget of $4,000,000 was transferred from the Aeronautical Allowance CIP C800753 resulting in no net change to the Airport capital budget. The project will be funded by the Airport Development Fund. The ten years of license and support costs estimated at $1,800,000 will be budgeted in the Aviation Facilities operating budget. Financial Analysis and Summary Project cost for analysis Business Unit (BU) Effect on business performance (NOI after depreciation) IRR/NPV (if relevant) CPE Impact $5,825,000 Terminal Building NOI after depreciation will increase due to inclusion of capital (and operating) costs in airline rate base. N/A $0.02 in 2029 Future Revenues and Expenses (Total cost of ownership) Estimated annual licensing and support costs of $180,000 will be budgeted within the Aviation Facilities operating budget. ATTACHMENTS TO THIS REQUEST None PREVIOUS COMMISSION ACTIONS OR BRIEFINGS September 9, 2025 - The Commission authorized construction for the Utility Meter Networking project (CIP#C801240) September 12, 2023 - The Commission authorized design funding for the Utility Meter Networking project (CIP#C801240) Template revised June 27, 2019 (Diversity in Contracting).