8e. Memo

Conference Room Communication

AGENDA MEMORANDUM                        Item No.          8e 
ACTION ITEM                            Date of Meeting    September 13, 2022 

DATE :     September 2, 2022 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Krista Sadler, Director Technology Delivery 
SUBJECT:  Conference Room Communication (CIP #C801258) 
Amount of this request:                 $555,000 
Total requested project cost:            $555,000 

Request Commission authorization for the Executive Director to 1) proceed with the Conference
Room Communication project; 2) execute contract(s) for communication equipment; and 3)
utilize Port resources for installation. The capital amount requested for project implementation
is $510,000. Warranty costs for the equipment are estimated at $45,000 for a total project cost
of $555,000. 
Over the last 6 years, the Port has installed Microsoft Surface Hubs in many conference rooms
across Port locations including the Airport Office Building (AOB), SeaTac Office Center (STOC),
Pier 69, and Marine Maintenance properties. Surface Hubs are designed to integrate with the
Microsoft Office Platform, which includes Teams conferencing software, to provide an interactive
and collaborative conferencing solution to support staff hybrid meetings. 
This project will procure and install up to thirteen 85” Microsoft Surface Hubs in several key
locations including the training rooms and large conference rooms in several Port locations.
Installation of the devices which includes power, network, and a permanent mount will be
completed by Port Construction Services. 
Information and Communication Technology (ICT) and Port Construction Services will partner to
deliver this project. The capital project was included in the 2022-2026 capital budget and plan
of finance as a $510,000 project. Capital project funding will be 82.1% Airport Development
Fund and 17.9% General Fund. Warranty costs estimated at $45,000 have been budgeted in the
2022 Aviation and ICT operating budgets.

Template revised January 10, 2019.

            COMMISSION AGENDA – Action Item No. 8e                                 Page 2 of 4
Meeting Date: September 13, 2022 
With the development of the HR-15 Flexible Work Arrangement Policy, hybrid meetings are here
to stay, creating additional demand for Surface Hubs in conference rooms currently without this
technology. In addition to being a good video conferencing solution, Microsoft Surface Hubs
deliver a bridge for meeting participants on-premises and attending remotely. They include a
variety of apps that support collaboration and are integrated into the tools our workforce uses
every day.
Diversity in Contracting 
Equipment will be purchased from a cooperative women-and-minority-owned business
enterprise (WMBE) contract. 
Scope of Work
(1)   Procure up to thirteen Microsoft Surface Hubs 
(2)   Install in identified conference and training rooms across multiple Port locations. 
Commission authorization                      2022 Quarter 3 
Equipment Procured                          2023 Quarter 1 
In-use date                                       2023 Quarter 3 
Cost Breakdown                                     This Request           Total Project 
Equipment                                           $350,000             $350,000 
Installation                                                       $160,000                 $160,000 
Total                                                           $510,000                $510,000 
Alternative 1 – Procure and deploy another 3rd party conference room technology 
Cost Implications: $550,000 - $700,000 
(1)   Ability to tailor each room to specific uses (e.g, conference room, training room, project
(1)   Increases implementation costs.
(2)   Adds complexity that will impact usage, training, and maintenance costs.
(3)   A system not integrated with common tools, decreases the ease of use.
This is not the recommended alternative. 

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

            COMMISSION AGENDA – Action Item No. 8e                                 Page 3 of 4
Meeting Date: September 13, 2022 

Alternative 2 – Do nothing 
Cost Implications: $0 project costs 
(1)   Funds are available for other projects.
(1)   Existing presentation technology in most conference rooms will not be available to
remote participants. 
(2)   Collaboration tools for location-diverse participants is lacking making meetings less
This is not the recommended alternative. 
Alternative 3 – Procure and install up to thirteen surface hubs 
Cost Implications: 
(1)   Audio, visual, and collaboration tools fully integrated with common office software
encourages full participation of location-diverse meeting participants. 
(2)   No new training requirements are needed. 
(1)   Funds are not available for other efforts. 
This is the recommended alternative. 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
Original estimate                                   $510,000         $45,000        $555,000 
Previous authorizations                                   $0               $0               $0 
Current request for authorization                  $510,000         $45,000        $555,000 
Total authorizations, including this request         $510,000         $45,000        $555,000 
Remaining amount to be authorized                    $0             $0             $0 
Annual Budget Status and Source of Funds 
The project was budgeted in the 2022-2026 Corporate plan of finance for $510,000 in CIP
C801258. Project funding will be 82.1% Airport Development Fund and 17.9% General Fund.
Equipment warranties, estimated at $45,000, have been budgeted in the Aviation and ICT 2022
operating budgets. 

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

            COMMISSION AGENDA – Action Item No. 8e                                 Page 4 of 4
Meeting Date: September 13, 2022 

Financial Analysis and Summary 
Project cost for analysis              $555,000 
Business Unit (BU)                  Administration allocates Aviation division wide which
61.8% is recovered through airline rates. 
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                       Less than $.01 in 2024 
Future Revenues and Expenses (Total cost of ownership) 
Additional Microsoft 365 licenses will be required for the new surface hubs. The estimated $7,500
will be budgeted in the ICT operating budget.

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


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