COMMISSION 
AGENDA MEMORANDUM                        Item No.          6b 
ACTION ITEM                            Date of Meeting      January 28, 2020 
DATE:     January 17, 2020 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Matt Breed, Chief Information Officer 
SUBJECT:  Phone System Replacement (CIP #C801083) 
Amount of this request:               $3,900,000 
Total estimated project cost:           $3,900,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to (1) proceed with the Phone 
System  Upgrade  project;  (2)  execute  a  contract  for  software,  equipment,  vendor
implementation services, and recurring maintenance fees for up to ten years; and (3) use port
staff for implementation. Total project cost for authorization of $3,900,000 is comprised of
$1,900,000 in capital project costs and an estimated $2,000,000 in recurring maintenance fees
for a period of up to ten years. 
EXECUTIVE SUMMARY 
This project will competitively procure and implement a system that will provide phone service 
for  employees  and  tenants  at  16  different  port  locations  that  include  Seattle  Tacoma
International Airport, Pier 69, Pier 66 (Cruise Terminals of America), and Terminal 91. In
addition to approximately 4,000 desk and conference phones, the phone system supports three
call centers, 911 Dispatch, terminal and firehouse paging, parking and rental car facility call
boxes, and Terminal and Rental Car Facility hotel direct lines. The port's Avaya/Nortel phone
system was installed in 2007 and last upgraded in 2013. Due to the age of the system, we no
longer receive software updates.  Further, the equipment will no longer be supported in the
next couple of years leaving the port vulnerable to system outages and increasing maintenance
costs. A new phone system provides an opportunity for enhanced security, greater reliability, 
and more efficient system operations and maintenance. 
Information and Communication Technology (ICT) will complete this project with a vendor
selected through a request for proposal (RFP) process. The capital project,  estimated at
$1,900,000, was included in the 2020-2024 capital budget and plan of finance. Recurring
maintenance costs estimated at $2,000,000 for up to ten years will be budgeted in the ICT
Operating Budget. 

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 6b                                  Page 2 of 5 
Meeting Date: January 28, 2020 
JUSTIFICATION 
This project provides important benefits for continued operations, security, and safety. 
(1)   Lack of full vendor support with no software updates increases the risk of failure and
security vulnerabilities. 
(2)   Phone sets are failing at an increasing rate, replacements are difficult to procure, and
we are paying a premium for outdated equipment to be compatible with an aging
phone system. 
(3)   The current system is comprised of several different vendor technologies making
system troubleshooting challenging. For example, in August 2019, the phone system
was unavailable for a sustained period of time and efforts to resolve the issue were
hampered by the lack of end-to-end diagnostic capabilities. 
(4)   Modern phone system architecture includes features that improve flexibility, capacity,
and security. 
Diversity in Contracting 
Project staff are working with the Diversity in Contracting Department to determine if a direct
women- and minority-owned business enterprise (WMBE) aspirational goal should be assigned.
Typically, subcontracting opportunities under technology projects are limited. 
DETAILS 
Scope of Work 
(1) Replace Avaya/Nortel phone system and related components 
(2) Integrate new phone system with existing systems to provide continued services 
(3) Review carrier-provided interchanges for cost saving opportunities  in the network
architecture 
(4) After analysis on phone usage and preferences, replace up to 4,000 phones at 16
locations. 
Schedule 
Commission authorization                                            2020 Quarter 1 
Procurement Completed                                          2020 Quarter 4 
In-use date                                                              2021 Quarter 4 
Cost Breakdown                                           This Request      Total Project 
Project                Hardware, Software, and Vendor           $1,125,000        $1,125,000 
Services 
Port Labor            $660,000          $660,000 
Taxes @ 10.1%           $115,000         $115,000 
Project Total                                                        $1,900,000        $1,900,000 

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

COMMISSION AGENDA  Action Item No. 6b                                  Page 3 of 5 
Meeting Date: January 28, 2020 
Recurring         Estimated $200,000 per year for up         $2,000,000       $2,000,000 
Maintenance                           to ten years 
Authorization                                                   $3,900,000        $3,900,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Procure a cloud phone solution. Cloud phone solutions are systems hosted by a
third-party provider and delivered through the internet. 
Project Cost Implications: $1,800,000 - $2,500,000 
Pros: 
(1)   The vendor has full responsibility for maintenance, reliability, and fail-over. 
(2)   Depending on scope of the implementation, there could be more integration with our
current  communication  technology  such  as  chat,  conferencing,  and  team
collaboration. 
Cons: 
(1)   This  solution  likely  precludes  the  port  from  leveraging  current  investments  in
communication technology such as interactive voice response and call center
management because the vendor will require the use of their own hardware and
software. 
(2)   While this alternative may work well for port employee phone service, there are
several requirements that will likely need an on-premise, traditional phone service for
integration with paging systems, call boxes, and tenant services. Multiple products will
increase cost and complexity. 
(3)   Cloud solutions are new to the telephony industry. As such, products are not as
robust, may not yet be as reliable, and will likely have frequent changes that hamper 
user acceptance. 
This is not the recommended alternative. 
Alternative 2  Delay a system replacement 
Project Cost Implications: $0 
Project costs are delayed but recurring costs will escalate as phone system replacement parts
are procured. 
Pros: 
(1)    Project funds are available for other opportunities. 
Cons: 
(1)    Risk of phone system failures increase.  In August of 2019 the port had a major phone
system outage with a delayed recovery due to the aging technology and lack of endto-end
diagnostic tools. 
(2)   Phone system equipment is currently failing at an increasing rate. We are purchasing
outdated replacement equipment for compatibility with an aging system. 

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

COMMISSION AGENDA  Action Item No. 6b                                  Page 4 of 5 
Meeting Date: January 28, 2020 
(3)   Security patches will no longer be available after software is not supported by vendor.
This significantly increases cyber threat. 
This is not the recommended alternative. 
Alternative 3  Procure new phone system leveraging recent telephony-related investments 
Project Cost Implications: $1,900,000 
Pros: 
(1)    Procuring a new system ensures the port and tenants' phone communication system
remains reliable for continued operations, safety, and security. 
(2)   Leveraging  the  port's  recent  investments  in  communication  technology  reduces
project costs and will result in a system that is easier to support and maintain. 
(3)    Cloud based phone systems will likely mature rapidly in the next few years providing
an interesting alternative for future benefit. This upgrade will provide the phone
service stability needed over the next five to ten years until new options are viable. 
Cons: 
(1)    Funding is not available for other alternatives. 
(2)    Integration with other office communication technology for port employees such as
chat,  conferencing,  and  team  collaboration  is  not  likely  available  with  the
recommended solution. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary               Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                 $1,900,000      $2,000,000      $3,900,000 
AUTHORIZATION 
Previous authorizations                                   $0               $0               $0 
Current request for authorization                $1,900,000      $2,000,000      $3,900,000 
Total authorizations, including this request       $1,900,000      $2,000,000      $3,900,000 
Remaining amount to be authorized                    $0             $0             $0 
Annual Budget Status and Source of Funds 
This project is included in the 2020-2024 capital budget and plan of finance for $1,900,000 
under CIP #C801083, Phone System Upgrade. The funding source will be 81.3 percent Airport
Development Fund and 18.7 percent General Fund. The recurring maintenance estimate of up
to $2,000,000 will be budgeted annually in the ICT Operating Budget. 


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

COMMISSION AGENDA  Action Item No. 6b                                  Page 5 of 5 
Meeting Date: January 28, 2020 
Financial Analysis and Summary 
Project cost for analysis              $1,900,000 
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 
Future Revenues and Expenses (Total cost of ownership) 
ICT labor costs to support the new phone system are not expected to change significantly 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).