4f. Memo

COMMISSION 
AGENDA MEMORANDUM                Item No.       4f 
ACTION ITEM                   Date of Meeting     July 11, 2017 
DATE:    June 22, 2017 
TO:     Dave Soike, Interim Executive Director 
FROM:   Mike Ehl, Director Airport Operations 
SUBJECT:  Airport Subway Information Displays Project Amendment (CIP #C800782) 
Amount of this request:           $482,000 
Total estimated project cost:       $3,052,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director  to (1) execute a contract
amendment with Advanced Application Design, Inc. for additional hardware, software, and
vendor services for the Airport Subway Information Displays Project and (2) amend the current
approved authorization for additional informational displays and features by $482,000 for a
total project cost not to exceed $3,052,000. 
EXECUTIVE SUMMARY 
On August 9, 2016, the Commission approved the Airport Subway Information Display
Enhancement project to procure and install a fully integrated digital signage system for inside
subway cars and outside in stations, capable of displaying variable messages in multiple
languages, video, and graphics for way-finding. A product was selected through a competitive
procurement and the contract has been signed for the original project scope. During the
procurement, additional features and display configurations were discussed that provide
increased capacity to display customer service messages, improve way-finding, integrate audio,
and ensure availability. These features include additional displays inside each train car, dynamic
displays above escalators to subway in concourses B and C, and an integrated station audio
upgrade. 
The estimated contract amendment of $430,000 is greater than ten percent of the original
contract value; therefore, Commission authorization is required under the General Delegation
of Authority, Section 4.2.3.8. 
JUSTIFICATION 
Good customer service is an important Airport strategy and clear way-finding, safety
information, and subway status have a big impact on our traveling public. With record increases

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 4f                        Page 2 of 4 
Meeting Date: July 11, 2017 
in passengers expected in 2017 and 2018, the efficient movement of passengers through the
airport becomes critical. Following are more specific benefits of the new features. 
(1)   Moving from 4 to 6 displays in each train car will increase our capacity to display
messages in multiple languages at the same time and improve way-finding
information. 
(2)   Currently, static signage directs passengers in the B and C concourses down escalators
to the subway system. No information is provided about closures or route changes
which happen daily, causing  confusion and frustration with passengers. This
amendment will add dynamic displays to provide information about closures and wayfinding.
(3)   The current train audio system is 20 years old and new features are currently available
for scheduling audio and synchronizing with train operations, improving customer
communication. 
(4)   Additional signage for a test environment and spare displays will ensure new content
and system upgrades are appropriately tested prior to release and there is quick
access to replacement parts for long lead items. 
DETAILS 
Additional display signage described below is an integrated part of the Airport Signage Master
Plan, currently in development. 
Added Scope of Work 
(1)   Procure and install additional display signage for Airport subway train cars, stations,
Concourses B and C, a robust test environment, and spare equipment. 
(2)   Upgrade the Airport subway audio system used for train car and station passenger
communication. 
Schedule 
Commission Authorization  Original Scope           Quarter 3, 2016 
Procurement Complete                      Quarter 2, 2017 
Commission Authorization  Amendment Scope        Quarter 2, 2017 
Subway Display Replacement                   Quarter 3, 2018 
Project Complete                            Quarter 4, 2018 
Cost Breakdown                         This Request       Total Project 
Hardware/Software/Vendor Services               $382,000        $2,082,000 
ICT and Aviation Maintenance Labor                    $0          $118,000 
Design                                      $35,000          $150,000 
Construction                                $35,000         $517,000
State & Local Taxes (estimated)                     $30,000          $185,000 
Total                                        $482,000          $3,052,000 

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

COMMISSION AGENDA  Action Item No. 4f                        Page 3 of 4 
Meeting Date: July 11, 2017 

ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do not expand the scope of the current authorized project 
Cost Implications: $0 
Pros: 
(1)   Funding is available for other efforts 
Cons: 
(1)   There will be less flexibility to display customer service messaging and additional wayfinding.
Adding this capability at a later time will be significantly more expensive. 
(2)   Improved messaging at concourse B and C escalators to the subway will be delayed
until the Airport Signage program is in implementation. 
This is not the recommended alternative. 
Alternative 2  Procure and implement additional signage and features 
Cost Implications: $482,000 
Pros: 
(1)   Increase capacity to display customer service messages to passengers. 
(2)   Improve way-finding for passengers including advanced notification of closures and
route changes. 
(3)   A robust test environment will ensure new content and system upgrades are
appropriately tested prior to release. 
(4)   More features for scheduling audio content and synchronizing with train operations
will improve communication with passengers on the subway train cars and in train
stations. 
Cons: 
(1)   Funding is not available for other efforts. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary          Capital      Expense        Total 
COST ESTIMATE 
Original estimate                      $2,570,000          $0    $2,570,000 
Current change                       $400,000      $82,000     $482,000 
Revised estimate                      $2,970,000      $82,000    $3,052,000 
AUTHORIZATION 
Previous authorizations                  $2,570,000          $0    $2,570,000 

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

COMMISSION AGENDA  Action Item No. 4f                        Page 4 of 4 
Meeting Date: July 11, 2017 
Current request for authorization             $400,000      $82,000     $482,000 
Total authorizations, including this request     $2,970,000       $82,000    $3,052,000 
Remaining amount to be authorized             $0         $0         $0 
Annual Budget Status and Source of Funds 
This project, CIP C800782, was included in the 2017-2021 capital budget and plan of finance as
a business plan prospective project with a total capital budget of $2,570,000.  The additional
$400,000 for the capital funding will be transferred from the aeronautical allowance CIP
(C800753) to the project (C800782) resulting in no net change to the Aviation Division capital
budget. 
Financial Analysis and Summary 
Project cost for analysis         $2,970,000 
Business Unit (BU)            Terminal 
Effect on business performance   NOI after depreciation will increase 
(NOI after depreciation) 
IRR/NPV (if relevant)           N/A 
CPE Impact                Less than $0.01 
Future Revenues and Expenses (Total cost of ownership) 
Maintenance and support for this system was originally expected to increase by $100,000. With
the procurement complete, the current estimate for increased costs is now $50,000. It is not
expected to increase as a result of this amendment. This will be budgeted in the Aviation
Maintenance Operating Budget. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
August 9, 2016  The Commission authorized for the Chief Executive Officer to (1) proceed
with the Airport Subway System Information Displays Improvement project; (2) procure
required hardware, software, vendor services, and maintenance; and (3) use Port staff
for implementation, for a total project cost not to exceed $2,570,000. 




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

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