PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      6b 
ACTION ITEM             Date of Meeting   August 19, 2014 

DATE:    August 12, 2014 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Steve Queen, Container Operations Manager 
Curtis Stahlecker, Project Manager 
SUBJECT: First Reading of Resolution No. 3695, declaring certain personal property surplus
(Port of Seattle Cranes 61, 62, 63, 64, 66, and 68) for Port of Seattle purposes and
authorizing its sale or disposal. 
Source of Funds: No funding requested at this time.
ACTION REQUESTED 
Request First Reading of Resolution No. 3695: A Resolution of the Port Commission of the Port
of Seattle declaring certain personal property surplus (Port of Seattle Cranes No. 61, 62, 63, 64,
66, and 68) for Port of Seattle purposes and authorizing its sale or disposal; and authorizing the
Chief Executive Officer to execute all documents related to such sale or disposal. 
SYNOPSIS 
Port staff has started the Terminal 5 Facility Modernization project design effort. The objective 
of this effort is to design and build a facility capable of handling two EEE class vessels by mid-
2018. While fully functional for the ships that had been calling on Terminal 5, the existing six
cranes do not have capacity (height and outreach) to handle cargo for EEE class ships and will
need to be removed to accommodate the larger cranes that will be needed. 
The cranes were purchased between 1984 and 1986 and are classified as PostPanamax, having a 
rail gauge of 100 feet and an outreach of 145 feet. Cranes 63, 64, and 68 have their original lift
height of 95 feet; the other three were modified in the late 1990s to have a lift height of 115 feet.
The cable reels were replaced on five of the cranes in 2013, Crane 66 had the cable reel replaced
in 2004. The remaining book values are primarily from the installation of cable reels in 2013,
crane drives in 2007, and spreader beams purchased in 2010. 
With the direction to modernize Terminal 5, and as there are no other open Port terminals where
the cranes could be utilized, it is desirable to sell the cranes while they are fully functional and
have current certifications.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 12, 2014 
Page 2 of 6 
BACKGROUND 
Cranes No. 61, 62, 63, 64, 66, and 68 are located at Terminal 5. They were purchased from
PACECO Corporation and are classified as post-panamax cranes. Cranes 61, 62, 63, and 64
were commissioned in 1984 followed by the purchasing and commissioning of Crane 66 in 1986 
and Crane 68 in 1989. The cranes have a capacity of 50 long tons and a rail gauge of 100 feet
with an outreach of 145 feet. The original lifting height for all the cranes was 95 feet. In the late
1990s the lifting height of Cranes 61, 62, and 66 was increased to 115 feet. The cable reels on
all of the cranes were replaced in 2013 except for Crane 68 which was replaced in 2004. 
The Port has no other terminal location or lessor with a need for these cranes. These cranes are
fully operational and in good mechanical, structural and electrical condition. They are
anticipated to compare favorably with similar cranes within the limited used crane market.
The Port had a valuation appraisal performed on the cranes in April of 2012. The valuation
indicated that, provided a willing buyer was available, the sale value of the six cranes relocated
from the terminal was estimated to be $3,750,000. While market conditions can change, there is
the potential for the Port to gain revenue up to this amount from the sale of the cranes.
In order to maintain the maximum marketability of the cranes, it is desirable to sell as soon as
practical since, without use, equipment such as cranes deteriorate rapidly due to corrosion,
evaporation of lubricants, and moisture penetration into electrical components thus diminishing
the residual value. The current book value of the cranes are approximately $2,142,000. 
Additionally there is the potential that the cranes would not sell and Port would need to demolish
them. Should the cranes need to be demolished Staff would return to Commission and request
authorization for the funds. 
PROJECT JUSTIFICATION AND DETAILS 
Project Objectives 
Advertise and sell Cranes No. 61, 62, 63, 64, 66, and 68 for use by others in order to allow the
modernization of Terminal 5 and the installation of larger dual-hoist cranes. 
Scope of Work 
Even though these cranes are post-panamax size with a 100 -foot gauge and fully operational,
there may be no market for them as the used crane market is slow and limited. For this reason,
our actual sale price could be very low, or they may not sell as we have seen recently with
Cranes 51, 52, and 53.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 12, 2014 
Page 3 of 6 
Schedule 
When a buyer is found or the cranes are removed, the cranes may be transferred with at least one
spreader beam per crane and with any spare parts that have no value for re-sale and no other use
to the Port. 
If the cranes do not sell within six months, staff will return to Commission to obtain
authorization to dispose of them in accordance with Port procedures, including paying to have
the cranes dismantled and scrapped. 
FINANCIAL IMPLICATIONS 
As of June 30, 2014, the remaining book values for the PACECO cranes and associated
components were approximately:
Crane 61 (PACECO Crane S/N 1264) = $305,000; 
Crane 62 (PACECO Crane S/N 1263) = $305,000; 
Crane 63 (PACECO Crane S/N 1262) = $305,000; 
Crane 64 (PACECO Crane S/N 1261) = $305,000; 
Crane 66 (PACECO Crane S/N 1355) = $107,000; 
Crane 68 (PACECO Crane S/N 1473) = $305,000; 
Associated Components 
(Lifting beams, Spreader Beams) = $510,000 
Combined net book value for the cranes totals $2,142,000. 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                            $0          $0          $0 
Previous Authorizations                       $0          $0          $0 
Current request for authorization                  $0          $0          $0 
Total Authorizations, including this request           $0          $0          $0 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost                    $0          $0          $0 
Project Cost Breakdown                     This Request       Total Project 
Construction                                     $0             TBD 
Construction Management                         $0            TBD 
Design                                       $0             TBD 
Project Management                             $0            TBD 
Permitting                                      $0             TBD 
State & Local Taxes (estimated)                        $0             TBD 
Total                                           $0              TBD

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 12, 2014 
Page 4 of 6 

Budget Status and Source of Funds 
No funding is requested with this Commission request, if the cranes do not sell staff will return
to Commission requesting funding to remove the cranes. 
The advertisement for the sale of the cranes will be funded by the General Fund. 
Financial Analysis and Summary 
CIP Category             NA 
Project Type              NA 
Risk adjusted discount rate     NA 
Key risk factors             Key risk factors include: 
The possibility that no buyer will be found for
Cranes No. 61, 62, 63, 64, 66, and 68 
The Port may eventually need to pay for the
demolition and removal of these cranes.
Project cost for analysis        NA 
Business Unit (BU)          Container Operations 
Effect on business performance 
The sales proceeds, if any, from sale of Cranes No. 61, 62,
63, 64, 66, and 68 and the related recognition of gain or
loss on sale of fixed assets will be recorded as a nonoperating
activity in the year of sale. If these cranes are
sold for less than the remaining book value of the asset
(approximately $2,142,000), then the result would be the
recording of a non-operating loss in the year of sale. 
IRR/NPV             NA 
Lifecycle Cost and Savings 
Removal of the cranes allows for the modernization of our existing assets and readies them for
current and future changes, extends their useful service life, and preserves the economic vitality
of our operations. 
STRATEGIES AND OBJECTIVES 
This project will support the Port's Century Agenda Strategic Objective to grow Seaport annual
container volume to more than 3.5 million TEUs by removing older equipment that is not
suitable for the anticipated class of vessel that will be calling on the terminal. 
TRIPLE BOTTOM LINE 
Removing the PACECO cranes from the facility will assist in the modernization of Terminal 5
by allowing the installation of larger cranes to support larger vessels which is key to the Port

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 12, 2014 
Page 5 of 6 
meeting its Century Agenda strategies of increasing container volume in Seattle to 3.5 million
TEUs and doubling the value of exports from Seattle. Environmental sustainability principles
will be employed consistent with Port policy. In addition, procedures set forth in the Port's
Small Contractors and Suppliers Program and other small business participation opportunities in
support of the Century Agenda goals or requirements will be established, accordingly. 
Economic Development 
Terminal 5 modernization will allow the Port to keep pace with current trends in order to stay
relevant as the shipping industry changes. The surplus and removal of the older equipment
allowing for the installation of more efficient equipment represents an investment in effectively
stewarding competitiveness of the region for market share. 
Environmental Responsibility 
This project will provide the opportunity to apply environmental sustainability principles by 
selling the cranes. 
Community Benefits 
This project benefits the local community by preserving existing jobs and adding new living
wage jobs in construction and terminal operations.
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1 - An option of doing nothing would leave Cranes No. 61, 62, 63, 64, 66, and
68 where they are. This would limit the use of the modernized Terminal 5 since they would
take space away from the new cranes that will need to be purchased for the EEE class
vessels. Additionally, required maintenance and certification expense to keep these cranes
operational during the modernization process does not benefit the Port as no revenue will be
generated
Alternative 2  Sale or Disposal of Cranes No. 61, 62, 63, 64, 66, and 68 are a key
component in the Port's Century Agenda strategies of increasing container volumes by
allowing more efficient equipment to be installed. This is the preferred alternative. 
ATTACHMENTS TO THIS REQUEST 
Resolution No. 3695 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
October 9, 1984, Commission authorization to award contract to PACECO, Inc. for purchase
of four (4) 50-long ton electric container cranes. 
March 25, 1986, Commission authorization for the purchase of two additional PACECO
crane under the current contract.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 12, 2014 
Page 6 of 6 
November 28, 1989 Commission authorized installation of personnel hoisting system on
Cranes 61 through 68. 
February 10, 2004 Commission authorized the relocation of Crane 66 to Terminal 5 and the
installation of a cable reel system. 
January 10, 2005, Commission authorized new crane drives for six Terminal 5 Cranes 
May 4, 2010, Commission authorized replacement of cable reels on five Cranes at Terminal
5.