6e

PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6e 
ACTION ITEM 
Date of Meeting      June 14, 2016 
DATE:    June 6, 2016 
TO:      Ted Fick, Chief Executive Officer 
FROM:   MaryAnn Lobdell, Senior Fleet and Compliance Manager, Marine Maintenance 
SUBJECT:  First and Second Readings and Final Passage of Resolution No. 3723, surplus of
construction equipment 

ACTION REQUESTED 
Request (1) unanimous consent to adopt Resolution No. 3723 at the same meeting at which it is
first introduced, as required by Article VIII, Section 1, of the Commission Bylaws; and (2) First
Reading and Second Reading and Final Passage of Resolution No. 3723: A Resolution of the 
Port  Commission  of  the  Port  of  Seattle  declaring  certain personal property, construction
equipment SPE.8579, SWP.1182, SPE.1201,  as surplus  for  Port  District  purposes and 
authorizing  the  Chief  Executive  Officer  to  execute  all documents necessary for its sale or 
disposal. 

SYNOPSIS 
The equipment, personal property listed below, needs to be declared as surplus and
documentation for sale or trade-in initiated. 
1.) SPE.8579, 1993 Komatsu PC200LC-6 Excavator 
2.) SWP.1182, 2001 Johnston 605 Sweeper 
3.) SPE.1201, 2001 Case 590 Backhoe 
The estimated resale value of the property exceeds the $18,000 threshold; the personal
property requires authorization from the Commission to declare the property surplus and
grant authority to the Chief Executive Officer to approve documentation to permit sale or
trade- in of identified personal property. The 2016 Fleet Replacement Program has
identified the aforementioned property as exceeding its useful service life and due for
replacement. 
AC-13, Disposition of Property, 3a-b, property is designated as "obsolete" when,
"Property which is outdated because of changes in operation or technology, or
replaced by new/upgraded property, such as voluntary demolition during a capital
improvement project, or replacement of a new vehicle." A recommended status of
surplus occurs when, "Property meeting one of the characteristics stated in paragraph
.03(a) to (b) should be declared as "surplus property". " 

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 6, 2016 
Page 2 of 6 

The identified personal property has been determined to have surpassed its useful life and
should be deemed "obsolete" per the disposition policy requirements. 

BACKGROUND 
EX-17, Fleet Management Policy was instituted in 2008. EX-17 grants authority to the fleet
manager to use criteria to determine Port acquisition, replacement and disposition of vehicles and
equipment, in coordination with the respective department. EX-17 Fleet Management Policy,
6.2.2.1; "The Fleet Manager will determine Fleet replacements based upon age,
mileage/hours, maintenance and repair costs, safety, environmental impacts and/or change in
operational requirements. Departments are encouraged to rotate assigned equipment from low
usage to high usage in order maximize Fleet life cycle." 
EX-17, Fleet Management Policy, 6.14.4, "The Fleet Managers will make the final decision as
to the disposition of the Fleet. Vehicles and equipment being removed from the Fleet shall be
disposed of in accordance with Port of Seattle Policies and Procedures AC-13; Disposition of 
Property." Based upon stringent criteria, the fleet manager has determined the identified 
personal property has exceeded its useful service life and is due for replacement. 
SPE.8579, 1993 Komatsu Hydraulic Excavator, was purchased in 1998 for $153,565, for Port
Construction Services, Capital Development Division, to perform essential excavating duties. In
April of 2016, the 2015 CDD Fleet Replacement Fund, CIP800450, procured a new excavator
under capital project, 105344. 
Per AC-13, Disposition of Property, SPE.8579 is considered obsolete. 
Excavators have an estimated life cycle of thirteen (13) years or 10,000 engine hours. The
current engine hours of SPE.8579 are 10,500. Due to numerous mechanical issues and the recent
replacement equipment purchase, SPE.8579 is deemed obsolete and excess to the fleet. 
It is recommended to surplus SPE.8579 and initiate sale or trade-in expeditiously to maintain
maximum marketability. An online equipment auction service provider, Bidadoo, has estimated
the resale value of SPE.8579, at $22,000 to $26,000. 
SWP.1182, 2001 Johnston 605 Sweeper Truck, was purchased in 2000 for $151,695, for Marine
Maintenance, Maritime Division, to perform essential sweeping operations for the Stormwater
Pollution Prevention Program. The 2015 Seaport Division Fleet Replacement Fund, CIP800442,
procured a new sweeper under capital project, 105259. The replacement sweeper truck is
estimated to arrive July of 2016. Per AC-13, Disposition of Property, SWP.1182 is considered
obsolete. Sweeper Trucks have an estimated life cycle of ten (10) years or 10,000 engine hours. 
The current engine hours of SWP.1182 are 9,193. Due to numerous mechanical issues and the 
recent replacement equipment purchase, SWP.1182 is deemed obsolete and excess to the fleet. It
is recommended to surplus SWP.1182 and initiate sale or trade-in expeditiously to maintain
maximum marketability. An online equipment auction service provider, Bidadoo, has estimated
the resale value of SWP.1182, at $13,000 to $18,000. 

Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 6, 2016 
Page 3 of 6 
SPE.1201, 2000 Case 590SL Backhoe Loader, was purchased in 2000 for $88,860, for Marine
Maintenance, Maritime Division, to perform essential maintenance operations. The 2016 
Seaport Division Fleet Replacement Fund, CIP800442, is currently in the acquisition planning
stages of procuring a new backhoe loader under capital project, 105446. Due to the upcoming
acquisition of replacement equipment and per AC-13, Disposition of Property, SPE.1201 is
considered obsolete. 
Backhoe Loaders have an estimated life cycle of ten (10) years or 7,000 engine hours. The
current engine hours of SPE.1201 are 8,572. Due to numerous mechanical issues and the
upcoming replacement equipment purchase, SPE.1201 is deemed obsolete and excess to the
fleet. It is recommended to surplus SPE.1201 and initiate sale or trade-in expeditiously to
maintain maximum marketability. An online equipment auction service provider, Bidadoo, has
estimated the resale value of SPE.1201, at $22,000 to $26,000. 
Each of these pieces of equipment has been offered to other government fleets. To date, no
entity has expressed interest. 
REQUEST JUSTIFICATION AND DETAILS 
Request Objectives 
Declare the aforementioned personal property as surplus. 
Authorize to initiate sale or trade-in of aforementioned personal property. 
Fleet Manager, Central Procurement Office, respective department(s) and stakeholders
will coordinate the disposition and sale of aforementioned personal property, following
the guidelines detailed by AC-13, Disposition of Property, while strictly adhering to the
authority granted by EX-17, Fleet Management Policy.
Schedule 
Final Commission Authorization            June 28, 2016 
Preparation for Sale                       September 2016 
Advertise for Sale                        October 2016 
Sale Complete                        December 2016 
Schedule is subject to change. 



Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 6, 2016 
Page 4 of 6 
FINANCIAL IMPLICATIONS 
In 1998, SPE.8579 was purchased for $153,565. The estimated resale value is $22,000 to
$26,000. 
In 2000, SWP.1182 was purchased for $151,695. The estimated resale value is $13,000 to
$18,000. 
In 2001, SPE.1201 was purchased for $88,860. The estimated resale value is $22,000 to
$26,000. 
Budget Status and Source of Funds 
No funding is requested with this Commission request. 
STRATEGIES AND OBJECTIVES 
The objectives of this request directly align with the strategies outlined in the following Port
policies and values: AC-13, Disposition of Property, EX-17, Fleet Management Policy, The
Maritime Environmental and Planning 2016 Business Plan and the Century Agenda. 
Achieving cost savings to the Port through centralized redistribution and disposal of
unneeded property. AC-13, I.1. 
Maximizing the return on investment for the disposal of Port's property. AC-13, I.3. 
Disposing of property when it no longer serves its intended purpose, no alternate future
use within 12 months exists, it is not considered a specialty item, and/or the Port no
longer requires it to maximize the return on investment for the disposal of Port's
property. AC-13, .03. 
Requesting authorization from the Commission, which must be obtained for surplus of all
property exceeding the statutory limit, otherwise authorization from the CEO or his/her
delegate per EX-2A must be obtained. AC-13, .06. 
Fleet acquisitions shall be the most energy efficient, cost effective and lowest emission
vehicle that meets operational needs for which the fleet is intended. EX-17, 6.3.1. 
Replacing equipment that has exceeded its useful life using these principles aligns with
the strategic objective of the Century Agenda to "Be the greenest and most energy
efficient port in North America". 
The Maritime Environmental and Planning 2016 Business Plan, states the objective
to "reduce air pollutants and carbon emissions". The new assets procured, utilize modern
technology that greatly reduce carbon emissions, while the old assets are obsolete by
current emissions standards. 



Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 6, 2016 
Page 5 of 6 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Opt to leave aforementioned personal property in current status. 

Cost Implications:   Unknown - actual costs to operate and maintain will escalate. 
Pros: 
(1)  Equipment remains available for use, at increasing cost. 
Cons: 
(1)  Property will continue to decline in condition.
(2)  Property will continue to decrease in market value. 
(3)  Costs to maintain Property will continue to escalate.
(4)  Downtime for crews utilizing the equipment will increase.
(5)  Projects for which these Properties are utilized could be delayed.
This is not the recommended alternative. 

Alternative 2  Transfer property to another department at the Port or other government agency.

Cost Implications:   Unknown but increasing costs if to Port department. 
Pros: 
(1)  Equipment can remain in use, at increasing cost, but no longer in current
department expense. 
Cons: 
(1)  Property will continue to decline in condition.
(2)  Mechanical issues, maintenance costs, and downtime will continue to increase for
the property that has exceeded its service life.
This is not the recommended alternative. 
Alternative 3  Adopt Resolution No.0000, declaring personal property, SPE.8579, SWP.1182
and SPE.1201 as "surplus", and authorize Chief Executive Officer, Ted Fick, to initiate
documentation for the sale, trade-in or transfer of property to other public agencies of
aforementioned property.

Cost Implications:   No cost to Port 
Pros: 
(1)  Eliminate deteriorating equipment 

Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 6, 2016 
Page 6 of 6 
(2)  Capture current market value 
Cons: 
(1)  None identified 
This is the preferred and recommended alternative. 

ATTACHMENTS TO THIS REQUEST 
Draft Resolution No. 3723 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None. 












Revised March 28, 2016  pjw

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