PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4g 
ACTION ITEM 
Date of Meeting    November 10, 2015 
DATE:    November 3, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Stuart Mathews, General Manager Aviation Maintenance 
Skip Himes, General Manager Marine Maintenance 
Brendalynn Taulelei, Sr. Maintenance Manager, Asset Management and Logistics 
SUBJECT:  Purchase and delivery of bulk diesel, bio-diesel, and gasoline fuels 
Amount of This Request:    $ 4,500,000      Source of Funds:     Annual Operating
Budgets 
Est. Total Project Cost:      $ 4,500,000 
Est. State and Local Taxes:   $ 500,000 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to execute a contract for bulk
fuel purchase and delivery to the Port. The contract will be for one year with four one-year
renewal options with an estimated contract value of $4,500,000 including applicable taxes. 
SYNOPSIS 
This memorandum requests Commission authorization for renewing a contract for the purchase
and delivery of bulk fuel (gasoline, diesel and bio-diesel) to Port-operated fuel sites located at the
Airport and Marine Maintenance. Additionally, this contract will be used to provide diesel fuel
as a backup fuel for the steam boilers at Seattle-Tacoma International Airport.
The Port-operated fuel sites provide 24/7 support to Port of Seattle vehicles and equipment
essential to day-to-day operations. These operations include Police and Fire services, physical
security, airfield operations, facility, airfield and ground maintenance, and power generation. 
Many of the emergency vehicles support 24/7 operations and cannot be operated on public roads. 
During adverse weather conditions (specifically, snow and ice), the fuel storage tanks require
replenishment between 24 and 72 hours to ensure continuity of critical business operations at the
Airport and Marine facilities. 
BACKGROUND 


Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 3, 2015 
Page 2 of 7 
The Aviation Maintenance department maintains a 4,000-gallon storage tank for unleaded
gasoline, a 16,000-gallon storage tank for diesel and a 1,500-gallon fuel truck for diesel fueling
of remote equipment. The Airport Fire Department maintains a 4,000 -gallon storage tank of
diesel fuel. 
Marine Maintenance utilizes a 6,000-gallon fuel storage tank for unleaded gasoline, a 3,000-
gallon bio-diesel storage tank and a 2,000-gallon fuel truck for bio-diesel fueling of remote
equipment. 
PROJECT JUSTIFICATION AND DETAILS 
Bulk fuel storage is the most efficient, cost-effective method in providing the various types of
fuels required by Port equipment. It provides a savings in fuel costs, eliminates travel to
commercial fuel stations and costs less than mobile fleet fueling "wet hose operation" services
used in some fleets. 
The availability of fuel to support Port fleet vehicles and service equipment is essential to the
day-to-day operations of both the Airport and Marine facilities. This contract will provide the
Airport and Marine Maintenance with the purchasing authority to coordinate fuel to support a
myriad of port-owned fleet assets, ground support equipment and emergency response vehicles.
Project Objectives 
Secure lowest possible fuel prices to sustain Port of Seattle vehicles and equipment. 
Ensure the availability of bulk fuel for critical day-to-day operational fleet and equipment 
that include Police and Fire emergency vehicles, service equipment and motor pools. 
Ensure vendors meet required response time expectations on the delivery of bulk fuel to
the various fuel storage locations during inclement weather. 
Scope of Work 
Marine Maintenance, Aviation Maintenance and the Port's Fire department require regular fuel
deliveries to each of the designated locations. Fuel levels and transactions are monitored via the
Port'sfuel management system, FuelMaster that provides real-time data for fuel consumption
and monitors tank balances.  Manual soundings are performed on fuel trucks operated by
Aviation and Marine Maintenance. 
During inclement weather or emergency situations, the selected vendor will be required to adhere
to strict response time requirements for bulk fuel delivery to ensure the continuity of critical Port
operations that support regional infrastructure, facility tenants, Airport customers and regional
commerce. These response times were established to meet the demand during inclement weather,
with the least amount of disruption to essential operations. The following estimated usage and
response times are provided as reference.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 3, 2015 
Page 3 of 7 
DIESEL FUEL      Tank Capacity     Fuel Type      Estimated      Required 
Location                   Currently in use   Annual Usage    Response time 
Airport Fire Dept.   1 @4,000 gal.      Diesel  #2  Ultra-  12,000 gal.       72 hrs. 
Low Sulfur Diesel
(ULS) 
Sea-Tac Airport    1@ 16,000 gal. 
Diesel #2 ULS     32,000 gal.      24 hrs. 

Horton St. Shop   1@ 3000 gal.    B20 Biodiesel    14, 000 gal.      24 hrs. 
(20% Bio/80%
ULS) 
Fuel  Truck  at 1@ 2000 gal.    B20 Biodiesel    10, 000 gal.     24 hrs. 
Horton St. Shop 
(20% Bio/80%
ULS) 

GASOLINE      Tank Capacity    Fuel Type      Estimated      Required 
Location                   Currently in use   Annual Usage    Response time 
Sea-Tac Airport   1@ 4,000 gal.    Unleaded Octane  130,000 gal.     48 hrs. 
(87) 
Horton St. Shop   1@ 6000 gal.    Unleaded Octane  35, 000 gal.      48 hrs. 
(87) 

Schedule 
The proposed contract should be executed by the end of 2015. 

FINANCIAL IMPLICATIONS 
The total contract amount is estimated at $4,500,000 over a five-year period (2015-2020). We
anticipate costs per year in the range of $450,000 to $900,000. All taxes are included in the total
contract amount. The costs will be included in annual operating budgets. The funding sources
will be the Airport Development Fund and the General Fund. 

STRATEGIES AND OBJECTIVES

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 3, 2015 
Page 4 of 7 
This contract will provide the Airport and Seaport with the means of securing a reliable source of
unleaded, diesel and bio-diesel fuels necessary to maintain 24/7 operations of port-wide facilities,
mission essential systems and services. This procurement also provides the potential to award this
contract to a small business, in alignment with the Port's Century Agenda strategy to "Use our
influence as an institution to promote small business growth and workforce development". 
The Port's use of bio-diesel fuel for some of its fleet reduces the Port's environmental impact to air
and water quality within the region. This effort directly supports the Port's Century Agenda strategy
to "Be the greenest and most energy efficient Port in North America." We anticipate utilizing biodiesel
where appropriate at a consistent rate through the life of this contract. On average, from 2010
through 2014, we consumed more than 24,000 gallons of bio-diesel. Complexities with existing
equipment and limitations with current infrastructure impact our ability to increase our utilization
significantly.
TRIPLE BOTTOM LINE 
Economic Development 
The Port of Seattle intends to competitively bid this purchase contract which will allow an
opportunity for multiple vendors in the region to compete. The purchase and delivery service of
bulk fuel through this contract enables the continued operability of critical Port fleet and
equipment used in day-to-day operations. This  contract enhances the Port's ability to
successfully meet the needs of the region's infrastructure, facility tenants, Airport customers and
regional commerce.
Environmental Responsibility 
As responsible environmental stewards, the Port of Seattle is committed to be the "greenest and
most energy efficient port in North America. We shall continue to explore renewable sources
and sustainable means and methods to reduce air pollution and carbon emissions. The use of
Bio-Diesel and Gas-Electrical powered vehicles are only few steps being taken to demonstrate
our commitment. Additionally, we shall exercise strict compliance with all local, state, and
federal guidelines to preserve our community and our environment. 

Community Benefits 
When possible, the Port of Seattle will partner with qualified local small business to provide
essential goods and services. This particular commodity is normally provided by companies
with more resources, products and greater storage capacities. However, local companies will be
considered to determine the feasibility of meeting the Port's operational needs.
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1) - Do not execute a new bulk fuel contract. Use direct purchase for bulk fuel 
deliveries through individual purchase orders at current market rates. Receive bulk fuel

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 3, 2015 
Page 5 of 7 
deliveries, but on an individual purchase order basis, with no long term contractual
agreement. This is not the recommended alternative.
Cost Estimate: Using July 2015 and October 2015 fuel prices and current consumption rate
for comparative purposes, this alternative would cost the Port between $450,000 and
$575,000 per year. As a reference, the following chart comparing bulk fuel commodity
pricing and retail pricing for October 12, 2015 is included below. Note retail Bio-diesel
fueling stations are limited in their availability so we have not included them in the pricing
comparison.
Relative fuel pricing: 
Retail       Wholesale/Bulk 
Unleaded   $2.59      $1.89 
Diesel      $2.99       $2.16 
Bio-Diesel              $2.69 

Pros: 
Without a contract in place, the Port has the flexibility to shop bulk fuel suppliers
for fuel at each replenishment. The Port would be able to obtain fuel at the lower
bulk fuel commodity cost rather than full retail cost, but without guaranteed
delivery schedule and pricing. 
Cons: 
Not having a contracted vendor committed to replenishing bulk fuel on a
consistent basis, could result in higher fuel prices, a shortage of fuel and the
inability to operate vehicles and equipment. 
There is no guarantee from a vendor on delivery times or the cost of delivery.
Without a guarantee, this could compromise the Port's ability to access bulk fuel
in emergency situations. 
This option also increases processing time as each replenishment will require a
direct purchase order. 
Alternative 2) Expand the use of fuel cards for Port fleet vehicles, while continuing to
purchase bulk fuel for vehicles and equipment that cannot operate on public roads. This is not
the recommended alternative.
Cost Estimate:  Using July 2015 and October 2015 fuel prices and current consumption rate
for comparative purposes, this alternative would cost the Port between $575,000 and
$730,000 per year.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 3, 2015 
Page 6 of 7 
Pros: 
Fuel purchase cards are being used for corporate motor pool, portions of Capital
Development Division and for Seaport vehicles operating in downtown Seattle
and north of P69. 
The use of fuel purchase cards can be expanded to other departments and issued
to vehicle and support equipment operated on public roadways. 
Cons: 
This is the more expensive alternative. In addition to the higher cost of fuel at
commercial gas stations round trip travel from the airport to commercial fuel
stations adds 7.5 minutes to the fuel time or $5.35-$7. 27 in employee time to
each refuel. This will conservatively total $26,750- $36,350 per year in employee
time. 
The Airport and Maritime have support vehicles and equipment that cannot be
driven on public roadways that require on site bulk fuel support. (Examples are
airfield snow equipment and buses and ground support equipment used for onramp
deplaning operations). 
The expanded use of fuel cards from 70 to approximately 600 will increase the
administrative workload to manage the fuel purchase cards (invoicing, card
accountability, damaged/lost card replacement, etc.). 
There is limited availability of retail bio-diesel fuel and bulk sourcing is
necessary. 
Relying on privately owned fuel stations could compromise the Port's ability to
acquire fuel in emergency situations.
The Port's fuel management system currently feeds our maintenance management
system with near real time fuel transactions and odometer readings. Use of fleet
purchase cards will delay that information and result in manual system entries. 
Alternative 3)  Request authorization to execute a new bulk fuel purchase and delivery
contract or contracts to support both operating vehicles and equipment at the Airport and
Marine operations. We will explore opportunities to incorporate small and disadvantaged
business entities as a part of the procurement solicitation process. This is the
Recommended Alternative. 
Cost Estimate Using July 2015 and October 2015 fuel prices and current consumption rate
for comparative purposes, this alternative would cost the Port between $450,000 and
$575,000 per year. 
Pros: 
This is the most cost effective alternative and provides an annual saving of
between $125,000 and $165,000 compared to Alternative 2. Bulk fuel prices are
20-25% less than retail.
A bulk fuel contract will provide the most consistent sourcing fuel for the Port.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 3, 2015 
Page 7 of 7 
The contractor commits to meeting response times and locks in emergency
delivery charges through the contract period during emergent operational
conditions. 
Fuel transactions and inventory are tracked through the Port's fuel management
system for billing, vehicle and equipment utilization analysis, and fuel price
analysis. 
Minimizing the use of fuel purchase cards, particularly at the Airport, keeps travel
times/fuel times low.
Alternative fueling methods (i.e. using a fuel purchase cards) will still be used for
some vehicles providing flexibility to managers in providing the best solution for
all scenarios. 
Cons: 
Bulk storage systems require monitoring and maintenance. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
September 28, 2010 -  the Commission authorized the Chief Executive Officer
authorization to execute a contract for delivery services of bulk fuel to the Port. The
contract was for one year with four one-year renewal options.