PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       6a 
ACTION ITEM             Date of Meeting   January 22, 2013 

DATE:    January 15, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Mike Campagnaro, Manager, Seaport Leasing and Asset Management 
Josh Peterson, Property Manager II, Seaport Leasing and Asset Management 
SUBJECT:  First Reading of Resolution No. 3674, declaring Port of Seattle Cranes Nos. 65,
67, 80, 81, 82 and related spare parts as surplus and authorizing their sale to Total
Terminals International LLC (TTI) as previously approved by Port Commission 
ACTION REQUESTED: 
Request First Reading of Resolution No. 3674: A Resolution of the Port Commission of the Port
of Seattle declaring certain personal property surplus (Port of Seattle Cranes No. 65, 67, 80, 81,
82 and related spare parts) for the Port of Seattle purposes; authorizing its sale to Total Terminals
International LLC; and authorizing the Chief Executive Officer to execute all documents related
to such sale or disposal. 
SYNOPSIS: 
The surplus of the cranes will allow the Port to complete the sale of the cranes as authorized by
the Port Commission as part of the Thirteenth Amendment to the Lease with TTI at T-46. The
Port will be responsible for paying any sales tax related to this sale, which will be funded from
the General Fund. 
As of November 30, 2012, the remaining net book value for the Paceco Cranes No. 65 and 67
and ZPMC Cranes No. 80, 81, 82 and related spare parts are approximately as follows: 
Container Cranes: 
Crane 65, Paceco (s/n 1354)             $ 8,924 
Crane 67, Paceco (s/n 1472) - 
Crane 80, ZPMC (s/n J101A-1)          $ 3,184,529 
Crane 81, ZPMC (s/n J101A-2)          $ 3,184,709 
Crane 82, ZPMC (s/n J101A-3)          $ 3,184,709 
Subtotal - Container Cranes:             $ 9,562,872 
Crane Equipment: 
Crane Hook 190                  $ 31,748 
Heavy Lift Container Beam -

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
January 15, 2013 
Page 2 of 4 
Replacement ZPMC gearboxes (3) - 
Spreader Beam Trailer - 
Crane Lifting Beam 165              $ 7,142 
Crane Lifting Beam 166              $ 3,743 
Crane Lifting Beam 177              $ 38,566 
Crane Lifting Beam 178              $ 38,357 
Crane Lifting Beam 179              $ 39,366 
Crane Lifting Beam 182              $ 39,366 
Crane Lifting Beam 183              $ 39,871 
Crane Lifting Beam 185              $ 126,993 
Crane Lifting Beam 186              $ 126,993 
Crane Lifting Beam 187              $ 126,993 
Crane Lifting Beam 188              $ 126,993 
Crane Lifting Beam 189              $ 126,993 
Subtotal - Crane Equipment:            $ 873,123 
Total NBV of items to be surplused:                             $ 10,435,996 

BACKGROUND: 
According to the Thirteenth Amendment to the T-46 Lease with TTI, the Port is obligated to sell
Crane No. 65, 67, 80, 81, 82 and related spare parts to TTI. Cranes 65 and 67 were manufactured 
in 1987 and 1989 respectively; cranes 80, 81, and 82 were all manufactured in 2001. 
PROJECT SCOPE OF WORK: 
Scope of Work: 
To complete the sale of the cranes and related spare parts to TTI, including any sales tax that
may be owed, as previously approved by the Port Commission. 
FINANCIAL IMPLICATIONS: 
Budget Status and Source of Funds: 
According to the terms of the 13th lease amendment for Terminal 46, the Port is responsible for
any sales tax owed on this sale of cranes to TTI. Port counsel has not yet determined if sales tax
is owed on this transaction.
If it is determined that sales tax is owed, the sales tax amount is estimated to be $815,100 based
on an aggregate fair market value of $8,580,000 for these cranes. While the cash payment would
be made in 2013, for accounting book purposes it will be amortized as a reduction in revenue
over the remaining term of the TTI lease. This estimated annual reduction in revenue of $63,086

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
January 15, 2013 
Page 3 of 4 
was not included in the 2013 operating budget, and would create an unfavorable variance in
operating revenue. 
If sales tax is owed, the unbudgeted payment will be funded from the General Fund. 
Financial Analysis and Summary: 
CIP Category             N/A 
Project Type              N/A 
Risk adjusted discount rate     N/A 
Key risk factors             No new risk factors are associated with this planned sale of
Port-owned cranes to TTI. Overall risk factors related to the
13th lease amendment to the TTI lease at Terminal 46 were
addressed in the Commission action approved on
12/11/2012. 
Project cost for analysis        N/A 
Business Unit (BU)          Container Operations 
Effect on business performance  The remaining net book value of these cranes and related
equipment was $10,435,996 as of 11/30/12. The net loss on
sale of these cranes will be recorded as a non-operating loss. 
If sales tax is owed on the sale of these cranes, it will be
amortized over the remaining term of the TTI lease and will
be recorded as a reduction of revenue each year. If the sales
tax obligation is $815,100, the annual amortization of sales
tax paid would be $63,086/year. 
The loss of 2013 and beyond future crane rent to the Port as
a result of the sale of these Port-owned cranes was included
in the analysis for the 13th lease amendment to the TTI lease,
approved by Commission on 12/11/2012. 
IRR/NPV             N/A 
CPE Impact             N/A 

STRATEGIC OBJECTIVES: 
This project supports the Port's Century Agenda goal to grow seaport container volume through
retention of the viable tenant and operations at T-46. This action to surplus the cranes will allow
for growth and development of marine and marine-related business at T-46. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Resolution 3674 
The ownership transfer agreement to be executed with TTI is not included at this time.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
January 15, 2013 
Page 4 of 4 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
March 27, 2001  Authorization of the Sixth Amendment to the lease relating to the
purchase of cranes 80, 81, and 82. 
December 11, 2012 - Authorization of 13th Amendment to the lease with Total
Terminals, Inc., at Terminal 46 including the selling of the cranes and related spare
parts to TTI.