COMMISSION 
AGENDA MEMORANDUM                        Item No.          4c 
ACTION ITEM                            Date of Meeting    September 12, 2017 
DATE:     September 5, 2017 
TO:        Dave Soike, Interim Executive Director 
FROM:    Kenneth R. Lyles, Director Fishing & Commercial Operations 
Kelli Goodwin, Maritime Operations Manager 
MaryAnn Lobdell, Sr. Mgr. Marine Maintenance Compliance - Fleet 
SUBJECT:  Procure 55,000 lb. capacity Heavy Lift Truck (forklift) for Terminal 91 
Amount of this request:                 $400,000 
Total estimated project cost:            $400,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to authorize procurement of one 
55,000 lb. capacity heavy lift truck (forklift) for the Terminal 91 rental fleet at a cost of $400,000
including taxes. 
EXECUTIVE SUMMARY 
A fleet of heavy lift trucks (HLTs) is in service at T-91, managed by our T-91 Maritime Operations
Team, for the use of customers on site. This request facilitates the retirement of a 1975, 33,000
lb. capacity HLT and its replacement with a new, 55,000 lb. capacity HLT.  This equipment
replacement improves the fleet, enhances worker and customer safety, and is a significantly
more environmentally responsible unit.  This HLT is rated at EPA Tier 4 Final, the highest
standard for this class of equipment. The new unit will better support the North Pacific Fishing
Industry, as well as Port of Seattle capital projects, corrective maintenance, cruise mobilization, 
and events like Seafair Fleet Week.
JUSTIFICATION 
The workload for T-91's fleet of HLTs is steady and the fishing industry tenants depend on the
availability of these tools.  Ships are increasing in size and their needs for loading and offloading
are similarly increasing.  These heavier load demands include larger nets, trawl doors,
spools, propulsion equipment and cruise ship standoff barges.  The existing 1975 HLT has
reached the end of its service life and parts are obsolete and unavailable. 
The Port will benefit financially, environmentally, and by improving safety with the acquisition
of a new larger capacity HLT.  This unit will show a payback within 5.9 years based on initial
costs, maintenance, depreciation, expected revenue, indirect benefits and residual value.  In

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 4c                                   Page 2 of 5 
Meeting Date: September 12, 2017 
addition, a new unit will assure more "up time" for additional potential rental revenue.
Increased  load  capacity  allows  for  potential  new  revenues  and reduced  maintenance,
breakdowns and costs associated with overloading our existing equipment. This is the size our
customers require for convenient rental. As an alternative, T-91 customer's and Port of Seattle
Operation's only recourse is to rent this size HLT. However, this size unit is rarely available and
delivery/pick-up  fees add  additional  costs  and  inefficiencies to  both  the  Port  and  our
customers. 
Replacement of the older 33,000 lb. capacity HLT takes out of service a unit that has no
emission control components and a very basic muffler for sound control. The new unit is more
energy efficient, with the Tier 4 Final engine/emission system, and supports our goal to be the
cleanest and greenest Port in North America. The new unit will be ergonomically correct, has
power control features, and includes safety alarms and limiters to protect against improper
operation. 
DETAILS 
Procuring this larger capacity HLT supports the North Pacific Fishing Fleet, Marine Maintenance,
Cruise Operations, and other industrial tenants at T-91.  This is an opportunity for increased
rental revenue and decreased maintenance costs in the T-91 HLT fleet. Estimated cost of the
vehicle is $400,000. This purchase is included in the phased capital fleet replacement program. 
Scope of Work 
Procure a 55,000 lb. capacity forklift at a cost of $400,000, working in conjunction with CPO and
ensuring adherence to Port purchasing policies and guidelines. 
Schedule 
Port staff is currently working on a delivery schedule of the asset.  It is expected to be
operational by the end of first quarter 2018. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1 Continue with Planned Phased HLT Replacement Program and replace 33,000 lb.
capacity HLT with another medium sized HLT and continue to rent Large HLT from third party
for cruise operations. 
Cost Implications: 
Budget already accounts for $400,000 replacement cost. 
Cruise spends $7,200/yr. on rental fees for 55,000 lb. capacity HLT to deploy/retrieve
cruise standoff barges.
Higher maintenance costs per annum on smaller machines as they continue to work in
excess of capacity. 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. 4c                                   Page 3 of 5 
Meeting Date: September 12, 2017 
Pros: 
(1) Already accounted for in our budget planning. 
(2) Relatively easy to procure. 
Cons: 
(1) Maintenance costs and down time will be higher as users lift loads that are at or in
excess of maximum capacity for medium sized HLT. 
(2) Cruise will still need to rent a 55,000 lb. capacity HLT to retrieve and deploy cruise
standoff barges at cost of $7,200+/year. 
This is not the recommended alternative. 
Alternative 2  Do not procure an HLT at this time. 
Cost Implications: $5,000+/year expense. Undetermined lost revenue opportunity. 
Pros: 
(1) No capital outlay. 
Cons: 
(1) Added value of providing on-site access to HLTs will be diminished as existing,
smaller HLTs eventually cannot handle the loads required. 
(2) Higher maintenance costs as smaller fleet of HLTs is used at or in excess of load
capacity for extended periods of time. 
(3) Cruise will need to rent a larger HLT each year at increasing rental rates. Possibility
exists that a HLT with needed capacity may not be available for rent when needed
to accomplish the work. 
This is not the recommended alternative. 
Alternative 3  Lease 55,000lb HLT - Staff examined three different lease options  
Full Pay-out Lease, Fair Market Value Lease Option and Rental Purchase Option. 
Cost Implications: $50,000  310,000 additional cost ranges, respectively 
Pros: 
1.  Avoids initial capital outlay 
Cons: 
1.  Additional cost in each option 
2.  Additional annual expense for rental and for maintenance performed by dealer as lease
requirement 
This is not the recommended alternative. 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. 4c                                   Page 4 of 5 
Meeting Date: September 12, 2017 

Alternative 4  Procure 55,000 lb. HLT 
Cost Implications: $400,000 
Pros: 
(1) Larger lift capacity will save undo wear and tear on smaller machines which are
currently lifting at max capacity. Maintenance savings. 
(2) Cruise Ops will be able to use this new machine to deploy/retrieve cruise standoff 
barges and save $7,200+/yr. rental fees. 
(3) Fishing fleet has been asking for larger HLT to accommodate heavier equipment and
gear. Tariff 5 has been updated to include a higher rental rate for this larger
capacity HLT. This should translate to increased rental revenue to the Port. 
Cons: 
(1) High initial capital cost. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                   $400,000               $0        $400,000 
AUTHORIZATION 
Previous authorizations                                    0                0                0 
Current request for authorization                  $400,000                0        $400,000 
Total authorizations, including this request         $400,000                0        $400,000 
Remaining amount to be authorized                    $0             $0             $0 
Annual Budget Status and Source of Funds 
The heavy lift truck asset procurement was included in 2018 plan of finance under CIP
#C800442 in the amount of $400,000. This project will be funded by General Fund. 
Financial Analysis and Summary 
Project cost for analysis              $400,000 
Business Unit (BU)                  Maritime Division 
Effect on business performance     The purchase of this equipment will increase the Net
(NOI after depreciation)             Operating Income due to the incremental revenue from
Lift Truck Rental. 
IRR/NPV (if relevant)                MIRR 13%/NPV $687,352 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. 4c                                   Page 5 of 5 
Meeting Date: September 12, 2017 
The NPV of this purchase is the present value of the net
cash flow shown below: 
Incremental Revenue from Rental     $320,614 
Estimate Salvage Value                  39,866 
Cost Savings from Cruise                102,971 
Cost Savings from Marine Maintenance  766,916 
Acquisition Costs                       (400,000) 
Maintenance Costs                   (143,015) 
Net Cash Flow (NPV)                   687,352
CPE Impact                       N/A 
Future Revenues and Expenses (Total cost of ownership) 
Future revenues reflect the incremental revenue from Lift Truck Rental due to more availability
as a result of the purchase of this equipment. This is partially offset by the maintenance costs.
The expenses for maintenance are estimated to be $10,000 in 2018 with 2.5% inflation rate
thereafter. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None 









Template revised September 22, 2016; format updates October 19, 2016.