PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       4f 
ACTION ITEM 
Date of Meeting    September 11, 2014 
DATE:    September 3, 2014 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Boni Buringrud, Director Seaport Finance and Budget 
David Kleiber, Seaport Environmental Finance Manager 
SUBJECT:  Environmental Risk and Communications (ERCI) Environmental Liability Software
Upgrades and Maintenance 

Amount of This Request:          $553,000   Source of Funds:     Airport  Airport
Development Fund;
Est. Total Project Cost:            $553,000 
Real Estate and
Seaport  Tax Levy 
Est. State and Local Taxes:          $48,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to execute an agreement for a
three-year period with two one-year options for Environmental Liability Software Upgrades and
Maintenance at a cost not to exceed $553,000. 
SYNOPSIS 
Approval of this request will allow the Port to continue receiving technical support and software
upgrades for the ERCI Defender software used throughout the Port of Seattle for cost estimation
and financial reporting of the Port's environmental liabilities through January 15, 2020. 
BACKGROUND 
The Port of Seattle is obligated to follow the requirements of the Governmental Accounting
Standards Board (GASB) Statement No. 49, Accounting and Financial Reporting for Pollution
Remediation Obligations, to assure proper reporting and disclosure of the Port's pollution
remediation obligations (PRO) which includes consistent cost estimating and reporting of
environmental remediation sites. GASB 49 enhances the comparability of financial statements
among governments by requiring all government agencies to account for PRO in a timely,
comprehensive, and consistent manner including required reporting of obligations that previously
may not have been reported. We are required to measure our environmental remediation liabilities
in accordance with GASB 49. Implementation of GASB 49 is required to conform to generally
accepted accounting principles (GAAP). 

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 3, 2014 
Page 2 of 3 
To meet the requirements under GAAP, in October 2003, the Port completed a competitive
procurement to provide a software system for environmental cost forecasting, decision analysis,
budgeting, reserving, and portfolio rollups using probabilistic cost estimating, along with support to
manage the system and produce the required reports and portfolios. Environmental Risk
Communication Inc. (ERCI) was awarded a five-year IDIQ contract in 2004.
ERCI has customized the summary of individual site liabilities (Portfolio Rollup) to meet the Port's
needs for completing GASB 49 financial reporting for the Port's financial statements. A separate
Portfolio Rollup is used to document the potential future liability. This information is critical for
developing strategies to reduce the Port's environmental liability exposure. This information is also
used for the Port's prospective financial statements so that the Port has the necessary financial
resources to cover obligations. The Port's future environmental liabilities Portfolio affect the Port's
financial position and bond covenant compliance. The PRO form also documents current and
contingent liabilities, in compliance with GAAP, in a format consistent across the Portfolio. The
PRO form provides an audit trail and historic reference for updating future calculations. Potential
cost recoveries are also noted. 
Each year we have had ERCI make changes to its Defender software tool and the corresponding
business processes based on feedback from financial auditors, environmental staff, other Port
managers and the Port's legal department and outside counsel. For 2014, there were no changes to
the software. 
ERCI software support services include the following: 
Environmental liability software upgrades to the portfolio tools and project templates for
each semi annual event, and provide Monte Carlo Modeling as needed. 
Support Seaport Environmental Finance Manager with Portfolio Rollups and templates 
limited support to technical software issues. 
Program updates, fixes, security alerts, and critical updates. 
Tax, legal, and regulatory updates. 
Major upgrades to add functionality. 
FINANCIAL IMPLICATIONS 
Total renewal costs (including sales tax) for the five-year period are estimated below: 
License and Support Costs (2015-2019)

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 3, 2014 
Page 3 of 3 
Annual Support
Year   Maintenance   Upgrades    Amount    Sales Tax    Total
2015 $ 75,000      $ 20,000      $ 95,000 $ 9,000     $ 104,000
2016 $ 78,000      $ 20,000      $ 98,000 $ 9,000     $ 107,000
2017 $ 81,000      $ 20,000      $ 101,000 $ 10,000      $ 111,000
2018 $ 84,000      $ 20,000      $ 104,000 $ 10,000      $ 114,000
2019 $ 87,000      $ 20,000      $ 107,000 $ 10,000      $ 117,000
$ 405,000      $ 100,000      $ 505,000      $ 48,000     $ 553,000

Budget Status and Source of Funds: 
This is not a request for funding. The annual Environmental Remediation Liability (ERL)
authorization for 2015 includes this cost and future years will be the annual ERL authorization. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
November 10, 2009 - the Commission authorized the Chief Executive Officer to execute an
Environmental Liability Support and Software Upgrade and Maintenance for three years and two
one-year options for a total estimated not-to-exceed amount of $750,000.