COMMISSION 
AGENDA MEMORANDUM                        Item No.          6c 
ACTION ITEM                            Date of Meeting      March 12, 2019 
DATE:     March 4, 2019 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Dave Wilson, Director, Aviation Innovation 
James Jennings, Senior Manager, Aviation Properties 
Wayne Grotheer, Director, Aviation Project Management 
SUBJECT:  Tenant Network Demarcation (DMARC) Upgrade  C800841 
Amount of this request:               $2,093,000 
Total estimated project cost:          $2,815,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to proceed with construction of
the Tenant Network Demarcation Upgrade project at Seattle-Tacoma International Airport in
the amount of $2,093,000 to modernize phone and Internet access for port tenants. The total
estimated cost for this project is $2,815,000. 
EXECUTIVE SUMMARY 
This  project  will  install  standardized   Port  telecommunication  network  demarcation
infrastructure ("DMARC" packages) to provide efficient "plug-in" capability for new and existing
tenants and provide for expansion as tenants' communication needs grow. These DMARC
packages offer tenants a standard point of connection to the Airport's communication network 
modernizing their phone and Internet access. At present it can take a tenant several months to
establish new service when moving into a space that does not have updated communication
infrastructure, leaving them without phone or Internet service for an extended period, which is
not acceptable. 
The DMARC installations will be completed through a Port Job Order Contract (JOC). Project
staff will be working with the Diversity in Contracting Department and JOC contractor to assist
in Women and Minority Business Enterprise (WMBE) program goals for participation per the
scope of work and JOC contract requirements. 
This project is included in the 2019  2023 capital budget and plan of finance. The project
carries some risk associated with legacy infrastructure removal. Please see the 'Additional
Background' section below for more discussion on project risk.

Template revised April 12, 2018.

COMMISSION AGENDA  Action Item No. _6c___                              Page 2 of 5 
Meeting Date: March 12, 2019 
JUSTIFICATION 
Providing modern and efficient communication infrastructure is a basic landlord responsibility
and an integral part of supporting our current and future Airport tenants. The Port's standard 
communication infrastructure requires a DMARC in each lease space. The DMARC is the point
where the Port-owned network ends and connects with the tenant's on-premises wiring. It is
the dividing line between the Port and tenant that  determines who is responsible for
installation and maintenance of wiring and equipment. This project provides modern highspeed
fiber optic infrastructure to tenant spaces that will more easily allow a tenant to adjust
the services it receives to support their growing data needs. It is also an important part of giving 
tenants a choice in their Internet service provider in the future. 
At  present,  a  sizable  number  of  our  tenant  spaces  are  on  outdated  legacy  copper
communications wiring that restricts tenants' data capacity. Further, new tenants are finding
the process of providing data and voice connectivity in office spaces not currently connected to
DMARCs to be unsatisfactory. Once a tenant leases an office, they could wait for an extended
period for their Internet and telephone service while the legacy infrastructure provider extends
connectivity to the space or the Port procures and connects a new DMARC in their space on an
ad-hoc basis. This project identifies remaining leased spaces that are not already converted to
modern telecommunication DMARCs, so when complete, all existing and future leasable tenant
spaces will be connected to modern communications infrastructure. 
Scope of Work 
(1)   Install DMARC and network equipment in tenant spaces throughout the main terminal 
and South Satellite per design 
(2)   Remove obsolete legacy network infrastructure and equipment as necessary 
(3)   Trace existing legacy vendor cable pathways from tenant spaces that will receive a
DMARC back to their source, identifying branches of legacy vendor cabling that
support other tenant spaces that do not lie within the scope 
(4)   Install conduit and network cable pathways from communication rooms to tenant
lease spaces 
(5)   Install and test Port provided telecommunication DMARC packages 
Schedule 
Commission construction authorization       2019 Quarter 1 
Construction start                             2019 Quarter 2 
In-use date                                    Phased: 2019 Quarter 3  2021 Quarter 3 
Cost Breakdown                                     This Request           Total Project 
Design                                                           $0               $722,000 
Construction                                             $2,093,000             $2,093,000 
Total                                                         $2,093,000              $2,815,000 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. _6c___                              Page 3 of 5 
Meeting Date: March 12, 2019 

ALTERNATIVES AND IMPLICATIONS CONSIDERED 
As part of the design authorization request, three alternatives were presented including the
recommended alternative. Commission authorized the recommended alternative. The project
continues to serve its identified need and the priority is unchanged. With design complete, the
project seeks construction authorization to complete the project. The following alternatives
discuss the pros and cons of cancelling or proceeding with the work. 
Alternative 1  Do not complete the project. 
Cost Implications: Approximately $200,000 spent to date would be expensed. While this would
cost less it would not meet objectives and tenants would have fewer choices and find it more
difficult to obtain or modify service. 
Pros: 
(1)   Frees up capital investment for other projects 
Cons: 
(1)   Impacts Port tenants' productivity by not providing flexible, up-to-date, high-speed
communications infrastructure 
(2)   The   Port   cannot   troubleshoot   problems   with   the   legacy   communications
infrastructure 
(3)   Does not provide necessary end-user connections to allow tenants greater choice of
communication providers and services in the future 
This is not the recommended alternative. 
Alternative 2  Complete the project as described above. 
Cost Implications: $2,815,000. 
Pros: 
(1)   Eliminates  new  proprietary  cabling  installations  by  telecommunication  service
providers and tenants 
(2)   Offers  flexibility  for  all  tenants  to  expand  their  communication  technology
requirements over time 
(3)   Gives the Port efficient "plug-in" connectivity for new or existing tenants, improving
customer service and maximizing revenue 
(4)   Allows for quicker activation as tenants move in 
(5)   Prepares for future greater communication choices and services to tenants 
Cons: 
(1)   Requires a large capital investment up front 
This is the recommended alternative. 


Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. _6c___                              Page 4 of 5 
Meeting Date: March 12, 2019 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
COST ESTIMATE 
Current estimate                                $2,815,000              $0      $2,815,000 
AUTHORIZATION 
Previous authorizations                            $722,000               $0        $722,000 
Current request for authorization                $2,093,000               $0      $2,093,000 
Total authorizations, including this request       $2,815,000               $0      $2,815,000 
Remaining amount to be authorized                    $0             $0             $0 
Annual Budget Status and Source of Funds 
This project was included in the 2019-2023 capital budget and plan of finance with a cost
estimate of $2,815,000. The funding source will be the Airport Development Fund. 
Financial Analysis and Summary 
Project cost for analysis              $2,815,000 
Business Unit (BU)                  Terminal Building 
Effect on business performance     NOI after depreciation will increase 
(NOI after depreciation) 
IRR/NPV (if relevant)                N/A 
CPE Impact                       $0.01 in 2021 
Future Revenues and Expenses (Total cost of ownership) 
By removing old telecommunications infrastructure this project will likely reduce future costs.
ADDITIONAL BACKGROUND 
This project includes scope to remove legacy wiring once it has been abandoned and tenants
have connected to the new DMARCs. Due to the passage of time (most of this wiring dates to
the terminal building construction in the 1970s) this legacy infrastructure is no longer well
known and the task of identifying it is still not complete. To move the project forward and
obtain the benefits of the DMARCs, construction is beginning now. Because of the lack of
information on the legacy infrastructure, there is a risk that the removal scope may be larger
than planned and may require additional funding to complete. The project team is coordinating
closely with the legacy vendor to further identify and prepare to remove legacy wiring in these
lease spaces once it is abandoned. 
ATTACHMENTS TO THIS REQUEST 
(1)   Tenant Network DMARC Upgrade Project PowerPoint 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. _6c___                              Page 5 of 5 
Meeting Date: March 12, 2019 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
September 26, 2017  The Commission authorized $722,000 for project design of the
Tenant Network Demarcation (DMARC) Upgrade - C800841. 

















Template revised September 22, 2016; format updates October 19, 2016.