PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       5c 
ACTION ITEM             Date of Meeting    June 4, 2013 

DATE:    May 28, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Russ Read, Seaport Security Program Manager 
Catherine Chu, Capital Project Manager, Seaport Project Management 
SUBJECT:  X-Ray Equipment for Seaport Cruise Operations at Pier 66 and Terminal 91 
(CIP #800432) 

Amount of This Request:  $360,000        Source of Funds:    General Fund 
Est. State and Local Taxes: $27,123          Est. Jobs Created:   N/A 
Est. Total Project Cost:    $360,000 
ACTION REQUESTED: 
Request Commission authorization for the Chief Executive Officer to: (1) change the scope of
the project to include the purchase of five tunnel x-ray machines; and (2) purchase and install up
to a total of five large tunnel x-ray machines for the cruise terminals at Pier 66 and Terminal 91
for a total amount not to exceed $360,000, of which $236,520 may be eligible for reimbursement 
by the federal government through the fiscal year 2009 Department of Homeland Security
Seaport Security Grant program, with a required Port of Seattle funding match of $123,480. 
SYNOPSIS: 
This request is the result of a change in scope to a previously authorized project. This new
project to purchase up to five x-ray machines to screen baggage at the cruise terminals replaces
the operation and maintenance portion of a previously authorized Seaport Security Grant
Program. If the Department of Homeland Security does not approve the Port's request to amend
the grant agreement for this change in scope, staff would not proceed with this project without
additional reviews and approvals by the Commission. 
BACKGROUND: 
As part of its efforts to increase security and reduce risk at the nation's strategic and
economically important seaports, the Department of Homeland Security (DHS) established the
Port Security Grant Program (PSGP) in fiscal year 2002. Since 2002, t he Port of Seattle has
received over $20,000,000 in grant funding to improve its security program. Projects to build
infrastructure and install security cameras throughout the Seaport division, mostly funded by
DHS grants under the fiscal year 2006 and fiscal year 2007 grants, were recently completed.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 28, 2013 
Page 2 of 4 

On November 8, 2011, the Port Commission approved a project under PSGP fiscal year 2009 
and fiscal year 2010 to (1) purchase eight to ten police vehicles, a police dive van, and a mobile
incident command vehicle; and (2) provide systems maintenance and perform project
management to carry out the fiscal year 2009 and fiscal year 2010 PSGP for a total cost of
$2,146,843 with $1,757,199 eligible for grant reimbursement. The police vehicles, dive van and 
mobile incident command vehicle have since been procured. Total cost to date is $1,507,505,
with a balance of $639,338 in authorized funds remaining. Of those remaining funds, there is
$236,520 of unobligated grant funds to fund Port of Seattle Information and Communications
Technology (ICT) operations and systems maintenance (O&M). The Port has applied to DHS
for a modification to the grant agreement to allow the Port to use that remaining grant funding to
purchase up to five large tunnel x-ray machines for the cruise terminals at Pier 66 and Terminal
91. It is anticipated DHS will approve the modification with sufficient time to procure the
equipment within the constraints of the grant requirements. 
Since this is a change of scope from the original project authorized by the Commission on
November 11, 2011, this request is treating the project to purchase x-ray machines as a standalone
new project for a total of $360,000. The original project budget approved by the
Commission on November 8, 2011, will be reduced by $360,000 accordingly. 
PROJECT JUSTIFICATION: 
Project Objectives: 
Ensure the Port's cruise terminals have adequate security screening equipment 
Comply with procurement policies and procedures 
Comply with DHS grant requirements 
Minimize financial impact to the Port 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
This request includes all costs (both grant-funded and Port-funded) to procure and install up to
five large tunnel x-ray machines.
Schedule: 
The procurement process will begin following DHS approval for grant modification and Port
Commission approval, and is expected to be completed by the end of 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 28, 2013 
Page 3 of 4 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary:            Capital     Expense      Total
Project 
Original Budget                            $0         $0         $0 
Previous Authorizations                       $0         $0         $0 
Current request for authorization              $360,000          $0    $360,000 
Total Authorizations, including this request      $360,000          $0    $360,000 
Remaining budget to be authorized               $0         $0        $0 
Total Estimated Project Cost               $360,000         $0    $360,000 
Project Cost Breakdown:                   This Request       Total Project 
Equipment Purchase                        $285,500         $285,500 
Port Soft Costs                               $47,377          $47,377
State & Local Taxes (estimated)                   $27,123           $27,123 
Total Request                              $360,000          $360,000 
Total Expected DHS Reimbursement              $236,520         $236,520 
Total Expected Cost to Port                      $123,480          $123,480 
Budget Status and Source of Funds: 
This project will be paid for from the general fund. Fiscal year 2009 DHS security grants will be
used to cover 75% of the direct costs of the machines ($236,520). The Port will be responsible
for 25% of that cost plus all internal overhead and administrative costs ($123,480). 
Financial Analysis and Summary: 
CIP Category             Renewal and Enhancement 
Project Type              Renewal and Replacement 
Risk adjusted discount rate     NA 
Key risk factors             Grant funding is not approved. 
X-Ray machines cost more than expected. 
Project cost for analysis        $360,000 
Business Unit (BU)          Cruise and Maritime Operations 
Effect on business performance  There are no incremental revenues as a result of this
project. This project will allow the Port to replace 12-
year-old x-ray machines at a post-grant cost of
$123,480. 
Annual depreciation of $36,000 will occur for 10 years. 
IRR/NPV             NA

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 28, 2013 
Page 4 of 4 
Lifecycle Cost and Savings: 
The x-ray machines to be purchased have an expected usable lifetime of approximately 10 years.
By utilizing Port of Seattle funding to match the federal grant funding the Port will save up to
$236,520. 
STRATEGIC OBJECTIVES: 
This project supports the Port's strategy to "advance this region as a leading tourism destination
and business gateway" through enhancing safety by providing needed security equipment for the
cruise operations. 
BUSINESS PLAN OBJECTIVES: 
Provide a safe and secure environment for cruise vessel passengers, staff and the public. 
Maintain compliance with U.S. Coast Guard Regulations for screening of passenger
baggage as required under Title 33, Code of Federal Regulations Part 105.290. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternatives to procuring new x-ray machines include: 
Refurbish the existing x-ray machines that are two years beyond their useful life
expectancy for an unknown cost and unknown probability of continued functionality. 
This is not the recommended alternative. 
Purchase up to five additional x-ray machines with available federal grant co-funding.
The option ensures on-going secure and efficient operation at the cruise terminals at
minimal cost to the Port. This is the recommended alternative. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
November 8, 2011  Port Commission approved seaport security grant program:
multiple security grant authorizations (CIP #800432 and CIP #800433), for a total of
$2,146,843.