PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA              Item No.      6c 
ACTION ITEM 
Date of Meeting    August 4, 2015 
DATE:    July 15, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Michael Campagnaro, Manager, Industrial and Container Properties, Seaport 
Josh Peterson, Property Manager, Seaport 
SUBJECT:  First Reading of Resolution No. 3710 - property surplus of Port of Seattle Cranes
Nos. 70, 71, and 72 

Amount of This Request:         $43,200   Source of           General Fund 
Funds: 
ACTION REQUESTED 
Request First Reading of Resolution No. 3710: A Resolution of the Port Commission of the Port
of Seattle declaring certain personal property surplus (Port of Seattle MHI Cranes No. 70, 71,
and 72 and related spare parts at Terminal 18) for Port of Seattle purposes; authorizing their sale
to SSA Terminals LLC; and authorizing the Chief Executive Officer to execute all documents
related to such sale or disposal. 
SYNOPSIS 
On July 22, 2014, the Port Commission authorized the third amendment to the crane agreement 
with SSA Terminals, LLC (SSAT) at Terminal 18. Declaring the MHI Cranes to be surplus
allows the Port to complete the cranes' sale as described in the amendment. In accordance with
the SSAT Crane Agreement, the Port and SSAT will each be responsible for paying 50 percent 
of the sales tax associated with the sale of the MHI Cranes. 
BACKGROUND 
As discussed in the December 6, 2012, Commission memo and presentation to the Port
Commission, the new land rent structure for the Terminal 46 lease with Total Terminals
International required that the Port offer this new land rent structure to its other container
terminal customers. On July 22, 2014, the Commission approved the SSAT lease amendments
for Terminal 18 and Terminal 30 that were required to settle claims related to the MFN clauses
for rent and cranes. The Port agreed to transfer ownership of the cranes to SSAT for $1.00 and
to equally split the cost of any sales tax related to the transfer of ownership. 


Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 15, 2015 
Page 2 of 3 
FINANCIAL IMPLICATIONS 
Budget Status and Source of Funds
According to the terms and conditions of the third amendment to the crane agreement with
SSAT, the Port and SSAT will each be responsible for paying 50 percent of the sales tax
associated with the sale of the MHI cranes. The total sales tax amount is estimated to be $86,400 
based on an aggregate fair market value of $900,000 for the three cranes. Accordingly, funding
is requested to pay 50 percent of the sales tax on the fair market value of the equipment,
estimated to be $43,200. While the cash payment will be made in 2015, for accounting book
purposes it will be amortized as a reduction in revenue over the remaining term of the SSAT 
lease. 
The $43,200 payment will be funded by 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 risk factors are associated with this planned sale of
Port-owned cranes to SSAT. 
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 $2.7 million as of 6/30/2015. The loss on
the sales of these cranes will be recorded as a nonoperating
loss. 
The sales tax payable by the Port will be amortized over
the remaining term of the SSAT  lease and will be
recorded as a reduction in revenue of ($1,048) in 2015 and
($1,787) each full year going forward. The 2015 budget
included an estimated amount of ($6,705), as the appraisal
value of the cranes was not known at that time. 
IRR/NPV             N/A

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 15, 2015 
Page 3 of 3 
Lifecycle Cost and Savings 
As of June 30, 2015, the remaining net book value for the MHI Cranes (70, 71 and 72) and
related spare parts are approximately as follows: 
Tag No     Asset                                      NBV 
70     50 Long Ton Electric Crane #70                          781,473 
71     50 Long Ton Electric Crane #71                          740,400 
72     50 Long Ton Electric Crane #72                         1,053,387 
LB171   20/40/45 Exp Spreader #171 (on crane #71)                 8,647 
LB172   20/40/45 Exp Spreader #172 (on crane #72)                24,596 
LB174   20/40/45 Exp Spreader #174 (on crane #70)                17,496 
LB173   20/40/45 Exp Spreader #173 (on chassis)                  19,434 
LB175   20/40/45 Exp Spreader #175                        25,364 
1096    Spreader Beam Trailer                                  0 
1097    Spreader Beam Trailer                                  0 
167     Earle's Beam                                         0 
176     Crane Cargo Hook                                   2,145 
Total                                             2,672,942 

ATTACHMENTS TO THIS REQUEST 
Resolution No. 3710 
Copy of the Third Amendment to the SSAT Crane Agreement 
Map of crane locations 
The ownership transfer agreement to be executed with SSAT is not included at this
time. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
July 22, 2014  Lease Termination Agreement for Terminal 5 and related amendments
to crane and lease agreement for Terminal 18 and Terminal 30.