COMMISSION 
AGENDA MEMORANDUM                        Item No.          6b 
ACTION ITEM                            Date of Meeting    September 24, 2019 
DATE:     September 17, 2019 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Matt Breed, Chief Information Officer 
SUBJECT:  Server Virtualization Upgrade (CIP #C801142) 
Amount of this request:                 $368,000 
Total estimated project cost:            $368,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to (1) proceed with the Server
Virtualization  Upgrade  project;  (2)  execute  a  contract  for  equipment  and  vendor
implementation services; (3) and use Port staff for implementation for a total project cost not
to exceed $368,000. 
EXECUTIVE SUMMARY 
Port of Seattle software applications run on a virtualized server platform that maximizes the
utilization of our hardware investments by condensing the number of physical servers to virtual
servers at a ratio of 35 to 1. This is accomplished because one physical server can host multiple
applications. This project will upgrade the server virtualization software at our local and remote
data centers and replace servers that are at their published end-of-life.  Support for our
software ends in March 2020 requiring an upgrade to continue to receive security and other
critical updates. Due to technology advancements that increase server capacity, we can further 
reduce our physical server count by 30% resulting in a 50 to 1 physical to virtual ratio. 
Information & Communication Technology (ICT) will complete this project. This project was not
budgeted as a large capital project for 2019 but $368,000 will be transferred from the
Technology Infrastructure Small Capital CIP (#C800009) resulting in no change to the 2019-2023
plan of finance. There is no change in estimated recurring maintenance costs as a result of this
project. 
JUSTIFICATION 
This technology platform hosts most of our applications critical for successful Port operations.
These include our Financials, Human Resources, Maintenance, Access Control, and Public Safety
systems among many other important applications. Supported technology infrastructure with

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 6b                                  Page 2 of 4 
Meeting Date: September 24, 2019 
current security and feature updates is critical to provide a stable and secure environment for
continued operations. 
Diversity in Contracting 
There are no WMBE goals established as it is highly unlikely there will be subcontracting
opportunities. Outreach with the support of the Diversity Contracting Office will be conducted
to maximize women and minority businesses knowledge of the project. 
DETAILS 
Scope of Work 
(1) Upgrade virtualization software at our local and remote data centers 
(2) Replace 13 servers at our Sea-Tac data center with 9 servers 
Schedule 
Commission authorization                      2019 Quarter 3 
Procurement Completed                      2020 Quarter 1 
In-use date                                       2020 Quarter 3 
Cost Breakdown                                      This Request           Total Project 
Hardware/Software                                    $310,000             $310,000 
Vendor Services                                             $10,000                $10,000 
Port Labor                                                    $48,000                $48,000 
Total                                                            $368,000                $368,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Procure new software via competitive procurement 
Cost Implications: $750,000-$1,000,000 
Pros: 
(1)   Current software and maintenance agreements for critical upgrades will decrease risk
of failure. 
Cons: 
(1)   This  is  the  highest  cost  alterative  and  will  require  significantly  more  time  for
implementation and training. 
(2)   The current software, used over the last 15 years, is an industry leader and meets Port
requirements. A  formal procurement for new software would likely result in the
selection of the same vendor. 
This is not the recommended alternative. 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 6b                                  Page 3 of 4 
Meeting Date: September 24, 2019 

Alternative 2  Upgrade existing software and replace end-of-life servers 
Cost Implications: $368,000 
Pros: 
(1)    Current software and maintenance agreements for critical upgrades will decrease risk
of failure. 
(2)   Since  licenses  are  already  purchased  and  software  upgrades  are  included  with
maintenance agreements, this is the most cost-effective alternative 
(3)   Requires minimal training 
Cons: 
(1)   While current system meets Port requirements, other beneficial features might be
available in another system discoverable through a competitive procurement. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary               Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                   $368,000               $0        $368,000 
AUTHORIZATION 
Previous authorizations                                   $0                0               $0 
Current request for authorization                  $368,000                0        $368,000 
Total authorizations, including this request         $368,000                0        $368,000 
Remaining amount to be authorized                    $0             $0             $0 
Annual Budget Status and Source of Funds 
This project was not budgeted as a large capital project in the 2019-2023 capital budget and
plan of finance. $368,000 will be transferred from the Technology Infrastructure Small Capital
CIP (#C800009) for no change to the plan of finance. This project will be funded 88.2% Airport
Development Fund and 11.8% General Fund. 
Financial Analysis and Summary 
Project cost for analysis              $368,000 
Business Unit (BU)                  Corporate division allocations 
Effect on business performance     NOI after depreciation will increase 
(NOI after depreciation) 
IRR/NPV (if relevant)                NA 
CPE Impact                        NA 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 6b                                  Page 4 of 4 
Meeting Date: September 24, 2019 

Future Revenues and Expenses (Total cost of ownership) 
Recurring costs are not expected to change as a result of this project. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None 














Template revised June 27, 2019 (Diversity in Contracting).