10b. Memo

Project Budget for the Telecommunication Meet Me Room (MMR)

COMMISSION 
AGENDA MEMORANDUM                        Item No.          10b 
ACTION ITEM                            Date of Meeting      February 8, 2022 
DATE:     January 28, 2022 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Eileen Francisco, Interim Director, Aviation Facilities and Capital Programs 
Wayne Grotheer, Director, Aviation Project Management 
SUBJECT:  Telecommunication Meet Me Room (CIP# C800762) 
Amount of this request:               $7,725,000 
Total estimated project cost:         $19,700,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to (1) increase the project budget
for the Telecommunication Meet Me Room (MMR) in the amount of $14,550,000; (2) prepare,
advertise, and award a design build major works contract to construct the MMR building; (3)
prepare design and construction bid documents for the MMR fiber; (4) utilize Port of Seattle
crews to support design and construction activities. This request is for $7,725,000 for a revised
total estimated project cost of $19,700,000. 
EXECUTIVE SUMMARY 
The MMR project will establish a new secure connection point for the telecommunication
entering and exiting Airport. This project will construct a new building and install the fiber
connections to link service providers to the Airport. These new connections will be integrated
with the existing Communication Infrastructure Backbone System (CIBS). This was one of the
projects selected to be put on hold during the COVID-19 workplace disruption, February 2020. 
To regain some of the hold time, the project will be conducted as two separate work projects to
deliver the building and new fiber connection on an accelerated timeline. 
Previous commission authorizations (September 2017) authorized $3.978M for the design and
construction of the MMR building. The MMR was advertised in July of 2019 and resulted in an
irregular bid. The additional budget of $2.55M is required for construction of the MMR building.
An additional budget of $12M is required to install and integrate into the existing CIBS. This new
scope will include the fiber connections needed to connect the providers to the Airport, dual
pathways of fiber connecting the MMR to CIBS for data redundancy, and spare capacity for new
services and or new providers. 

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 10b                                 Page 2 of 7 
Meeting Date: February 8, 2022 
This request is for the authorization of additional funds to complete the building scope of the
project and to initiate the design of the fiber scope. The team will return to commission for
authorization to construct the fiber scope. The MMR project has been briefed to the Majority-In-
Interest (MII) partners on December 9th and received a positive vote in favor of the project. 
JUSTIFICATION 
The MMR building and new connection will serve as the gateway for the Airport to communicate
to the outside world with internet, telephone, and data systems. Some of the data systems
include airline check-in system, baggage handling systems, departure control system, and mobile
applications. 
The project will construct the facility on the south end of the airport that is near existing
connection points for our service providers and the Airport infrastructure. The building will have
secure spaces for the Port and Service Providers to house their equipment. A network of highspeed
fiber will connect the service providers' equipment to the Port equipment and from there
be transferred onto the Port's existing CIBS. This project will provide a space for the legacy service
provider to relocate their equipment to a more serviceable and secure area outside of the
Airport's baggage operation area and to negotiate a new lease agreement. The vacated area can
be modified to accommodate the planned future expansions. 
This project will relocate and upgrade the legacy connections from a copper to high-speed fiber 
and install two pathways to connect the MMR to the Main Distribution Rooms (MDR). The second
pathway is not existing in the current system configuration. The second pathway will provide
data redundancy and resiliency to the existing connections. The pathways established will have
spare capacity for future fiber expansions as the data needs grow at the Airport. 
Diversity in Contracting 
There are multiple elements within the scope of this project that will provide WMBE business
opportunities. The Design Build effort will have a goal of 12% WMBE participation rate. The fiber
design effort will utilize an existing IDIQ contract which has an aspirational goal of 16% that will
apply to this work. 
DETAILS 
This project will include two separate work projects; one will include the design and construction
of the MMR and the second will be the design and construction of the fiber required to connect
the MMR to the rest of the Airport. 
Scope of Work 
The Telecommunication Meet Me Room project will consist of: 
(1)   Design and construct a 1,000 square foot (approx.) single story structure. 

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

COMMISSION AGENDA  Action Item No. 10b                                 Page 3 of 7 
Meeting Date: February 8, 2022 
(2)   Enhanced  on-site  security  to  ensure  secure  operations  without  requiring  service
providers to access the Security Identification Display Area (SIDA). Building location is
outside of the SIDA. 
(3)   Install underground structures, and conduit pathways to intercept the International
Arrivals Facility (IAF) Duct bank system. 
(4)   Install underground structures, and conduit pathways for service providers to access
from International Boulevard. 
(5)   Connect the MMR building to the existing Airport utility connections. 
(6)   Install landscaping, and secure and controlled gate access around the facility. 
(7)   Design the MMR building to have separate Port and service provider spaces to house
equipment. 
(8)   Design and install cable trays to support internal to MMR fiber interconnections. 
(9)   Design primary and secondary fiber pathways from the MMR facility to each Main
Distribution Room (MDR). 
(10)  Install passive and active equipment needed to transport services from the providers to
the airport end users. 
Schedule 
The scope will be completed using two individual work projects. The building will be completed
as a Design-Build (DB) project, and the fiber will be a Design, Bid, Build (DBB). The projects will
be run concurrently as some information from the building is required to complete the fiber
design. 
Activity 
Commission Authorization (Building DB, Fiber
Design) 
Building 
Design Build Procurement Start                  2022 Quarter 2 
Construction Start  Building                     2023 Quarter 2 
In Use Date  Building                            2024 Quarter 1 
Fiber 
Design Start                                       2022 Quarter 2 
Commission Construction Authorization         2023 Quarter 2 
Construction Start                                2023 Quarter 4 
In Use Date                                      2025 Quarter 1 




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

COMMISSION AGENDA  Action Item No. 10b                                 Page 4 of 7 
Meeting Date: February 8, 2022 
Cost Breakdown                                     This Request           Total Project 
Design                                                  $3,747,000             $3,822,000 
Construction                                             $3,978,000            $15,878,000 
Total                                                         $7,725,000             $19,700,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Defer the project 
Cost Implications: Approximately $750,000 would need to be expensed. 
Pros: 
(1)   No capital investment. 
Cons: 
(1)   No new facility is constructed. 
(2)   A future project will be needed to relocate legacy connections to a permanent location. 
(3)   Additional scope, schedule, and cost would be required by future projects for temporary
connections. This could result in significant disruptions of service. 
(4)   No new space available for new providers to bring services to the Airport. 
(5)   Without leverage to require a move, legacy provider remains in place. 
(6)   No new connections available for new services. 
(7)   No new fiber connections would be available for use. 
This is not the recommended alternative. 
Alternative 2  Construct the MMR building and install only the primary pathway (Reduced
connections). 
Cost Implications: $15,000,000 
Pros: 
(1)   Constructs a secure building for the telecommunication interconnections. 
(2)   Relocates legacy connections to a permanent location. 
(3)   Provides a space for providers to bring in new services. 
(4)   Provides the opportunity to negotiate a lease agreement with the legacy provider and
any new providers. 
(5)   Upgrades copper connections to high-speed fiber. 
Cons: 
(1)   No secondary pathway is installed. There is a potential for longer outages in the event
of a disruption (No connection redundancy). 
(2)   A separate project would be needed to add interconnections within the Airport to
transfer services to some remote offices or tenants. 
(3)   Loss of additional capacity space with no alternative pathway. Primary pathway will be
reaching capacity with future fiber installations to add more connections. 

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

COMMISSION AGENDA  Action Item No. 10b                                 Page 5 of 7 
Meeting Date: February 8, 2022 
(4)   Limited available connections for new providers to bring services to the Airport. 
(5)   A future project would be needed to establish an alternative pathway to add more fiber
connections. 
This is not the recommended alternative. 
Alternative 3  Construct the MMR Building and install both fiber pathways (Primary and
Secondary). 
Cost Implications: $19,700,000 
Pros: 
(1)   Construct a secure building for telecommunication interconnections. 
(2)   Relocate legacy connections to a permanent location. 
(3)   Provides space for new service providers to access the Airport infrastructure. 
(4)   Creates leverage for a lease agreement with the legacy provider. 
(5)   Upgrades copper connections to high-speed fiber. 
(6)   Installs a secondary pathway to connect the MMR to each MDR. This will add additional
connections and provide data redundancy. 
(7)   Installs a new tray pathway for future fiber expansions. 
Cons: 
(1)   Highest capital investment. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                 $5,100,000         $50,000      $5,150,000 
Current change                                $14,249,000       $301,000    $14,550,000 
Revised estimate                              $19,349,000       $351,000    $19,700,000 
AUTHORIZATION 
Previous authorizations                          $3,928,000         $50,000      $3,978,000 
Current request for authorization                $7,424,000        $301,000      $7,725,000 
Total authorizations, including this request      $11,352,000        $351,000     $11,703,000 
Remaining amount to be authorized            $7,997,000             $0     $7,997,000 
Annual Budget Status and Source of Funds 
This project, CIP C800762, was included in the 2022-2026 capital budget and plan of finance with
a budget of $5,100,000. A budget increase of $14,249,000 was transferred from the Aeronautical
Reserve CIP C800753 resulting in zero net change to the Aviation capital budget. The increase in
budget was driven in large part by expanding the scope to connect to all three MDRs, the addition

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

COMMISSION AGENDA  Action Item No. 10b                                 Page 6 of 7 
Meeting Date: February 8, 2022 
of the secondary pathway, including fiber to support existing fiber connections, and some
increase was a result of escalation from the project deferment. This project received airline
Majority in Interest approval.
Financial Analysis and Summary 
Project cost for analysis              $19,700,000 
Business Unit (BU)                  Terminal Building 
Effect on business performance     NOI after depreciation will increase due to inclusion of
(NOI after depreciation)             capital (and operating) costs in airline rate base. 
IRR/NPV (if relevant)                N/A 
CPE Impact                       $.06 in 2025 
Future Revenues and Expenses (Total cost of ownership) 
This MMR facility will be monitored 24/7 with backup power. The maintenance cost is estimated
at $10,000 year. 
ADDITIONAL BACKGROUND 
The MMR project has been in discussion and design with the initial commission action in 2017.
The scope only included connection to one of the main distribution rooms (MDR3) with new
connections being established through this pathway and for legacy connections to be moved
later. 
The project team underwent a detailed review of the various locations available to house these
connections. The location at the south end of the airport is near existing connection points for
both the Airport and Service Providers. The fiber connections were limited at this stage and being
considered for inclusion in other telecommunication work. 
In July 2019, the project team advertised a design build package that included the construction
of the building and the connection to the existing Airport infrastructure. That bid resulted in one
bid with a cost greater than 35% over the engineers estimate. The bid was reviewed, with some
line items removed, while the team began the process of returning to commission for additional
funding when the project was put on hold and the deferred project list during the COVID-19
workplace disruption. 
In September 2021 the project efforts were restarted, and scope increased to be fully functional
by including the fiber required to connect to each MDR (3 in total), sufficient circuits to migrate
the legacy connections, and to establish the connection infrastructure within the MMR facility
for future growth from existing or new suppliers. Through the restarted efforts the secondary leg
was identified and included to improve the Airport's data redundancy. 


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

COMMISSION AGENDA  Action Item No. 10b                                 Page 7 of 7 
Meeting Date: February 8, 2022 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
September 26, 2017  The Commission authorized $3,978,000 for design and construction. 
















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

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