PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      5e 
Date of Meeting    October 11, 2011 

DATE:    October 3, 2011 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Michael Burke, Director, Seaport Leasing and Asset Management 
SUBJECT:  Radio-Frequency Identification Memorandum of Understanding 
Amount of This Request: $1,170,000         Source of Funds: Grant funding and 
Annual operation budget 
Total Project Cost: $1,170,000 
ACTION REQUESTED:
Request authorization for Chief Executive Officer to 1) execute a Memorandum of 
Understanding with SSA Terminals; Total Terminals, Inc.; and Eagle Marine Services to 
implement a Radio Frequency Identification (RFID) system in the Port of Seattle; and 2) 
purchase the services of eModal to administer the Radio-Frequency Identification system related 
to the Clean Truck Program for an amount not-to-exceed $500,000. The total cost of the project 
is estimated to be $1,170,000.00, of which $500,000 will be reimbursed through a previously 
approved U.S. Department of Transportation Congestion Mitigation/Air Quality grant and the 
remainder will be included in the 2012-2016 operations budgets. 
SYNOPSIS:
Our marine terminal operators have proposed to the Port that we cooperatively implement a
Radio Frequency Identification (RFID) system for trucks accessing our international container
terminals to support both their terminal operations and our clean truck program. Using RFID to
identify compliant clean trucks for our program will allow the Port to collect accurate data on
truck visits to our terminals and help the Port plan for future enhancements to our truck program.
The Port's main contributions to this system will be a five-year, sole source contract with
eModal, funded by grant money already approved for this use. The other Port contribution will
be to maintain a "trouble site" for truckers to deal with access issues to the terminals. The Port 
already maintains and funds a "trouble site" and Drayage Truck Registry (DTR) subscription
with Advent Inc. for the decals used in the current Clean Truck Program.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 30, 2011 
Page 2 of 6 

ADDITIONAL BACKGROUND: 
On January 1, 2011, the Port required all trucks entering our container terminals to be a 1994
model year or newer. Terminal operators enforced this requirement as called for in lease
agreements. Trucks are identified as compliant with a Port-supplied sticker. The sticker system
is a low cost way to quickly identify compliant trucks, but it does not provide the Port with 
any data on specific truck visits to help plan future steps in the Port's truck program  including
the planned requirement that all drayage trucks calling our facilities have 2007 model year
engines by 2017. Also since the sticker program is free, many more trucks have registered for
our program than regularly visit the Port. Though over 8,000 trucks are currently registered in
our system, a fleet of approximately 2,000 trucks regularly call at our terminals. Many of those
trucks also call at Port of Tacoma. 
For some time, the Port team working on the truck program has been considering the advantages
of going to an RFID system to replace the stickers. Such a system would enable the Port to
accurately identify the composition of fleet that regularly calls at our terminals so that the next
phases of the clean truck program can be developed with more precise information. California
ports use RFID to track specific truck visits to their terminals as part of their program. 
Earlier this year, our terminal operators, SSAT, TTI and EMS, came to the Port with a proposal
to cooperatively implement an RFID program in Seattle using the same technology that the
California ports use, specifically the WhereNet readers and tags and the eModal database. The
terminal operators have already made the investment in this technology to integrate this system
with their gate operating systems. SSAT already uses this system at Terminal 18 and a large
number of trucks serving our terminals already have this type of RFID tag. The terminal
operators want an RFID system they are confident will work with their gate systems and that
they can use for future enhancements to their gate operations. They also expressed concern that
any future enhancements to the security check at their gates would require some type of
automation of the Port's truck program check and the automation would have to work with their
sensitive gate operating system. 
TERMS OF THE MOU: 
1.   The Port will enter into a five-year purchased service agreement with eModal to support
the truck program at a cost not to exceed $500,000. The Port will use its grant funding
from U.S. Department of Transportation to pay for this subscription. (A competition
waiver has been submitted to and approved by the CPO and Port Legal.) 
2.  The Port will provide a "trouble site" solely for the purpose of supporting the Port's clean
truck database system.  The "trouble site" will provide the following services: 1)
provide support to truckers needing to register for the Port's clean truck program and 2)
handle issues related to the functionality of the RFID tags. The "trouble site" will not

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 30, 2011 
Page 3 of 6 
handle issues with the eModal database or any issues related to gate transactions, which
will remain Lessees' responsibility. 
3.  The terminal operators will install and maintain RFID tag readers and the necessary
equipment, infrastructure, and systems at their sole cost to make the tag readers
functional at each of their gate entries at their respective container terminals leased from
the Port.
4.  Lessees will distribute one RFID tag to each truck qualified to enter the terminal in
accordance with the lease amendment incorporating the Port's clean truck program
requirements, if the truck does not already have a functioning tag. Lessees will require
the truck owners to purchase one tag per truck. Lessees will subsequently reimburse the
truck owners for the cost of the tag after the truck has passed through the tag reader and
onto the terminal for the first time to pick up or drop off a container, within six months of
the RFID system being required to enter the terminal. Truckers will be required to pay
for replacement tags in the future. Tags are expected to last 3-5 years and the cost for a
replacement tag is approximately $100, the same as in California. 
PROJECT JUSTIFICATION:
This MOU provides the Port the ability to maintain and enhance the Clean Truck Program as part
of the Clean Port's Initiative. 
Schedule: 
The Port anticipates that the RFID program will start functioning in January 2012, but it will not
be a requirement until the second quarter of 2012. 
FINANCIAL IMPLICATIONS: 
RFID Project Costs                             Total 5 Year Cost
RFID Project Costs (in $000's)         2012     2013     2014     2015     2016   Total Program  Qualified Grant
Cost    Reimbursement
eModal Subscription             100,000   100,000   100,000   100,000   100,000     500,000      432,500
Start up for Trouble Site (POS Labor)    115,000                                       115,000
Trouble site equipment (readers)       25,000                                      25,000       21,625
Maintain Trouble Site (5 Years)        63,000    66,150    69,458    72,930    76,577      348,115
DTR Consultant (Advent)           36,300    36,300    36,300    36,300    36,300     181,500       45,875
Subtotal - Annual Port Costs         339,300   202,450   205,758   209,230   212,877    1,169,615       500,000
Grant Reimbursement           (139,525)  (117,900)  (117,900)  (117,900)   (6,777)    (500,000)
Net Port Costs                  199,776    84,551    87,858    91,331   206,100     669,615

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 30, 2011 
Page 4 of 6 

Budget/Authorization Summary 
Original Budget                                                  $0 
Previous Authorizations                                              $0 
Current request for authorization                                    $1,170,000 
Total Authorizations, including this request                             $1,170,000 
Remaining budget to be authorized                                     $0 
Total Estimated Project Cost                                    $1,170,000 
Source of Funds 
The 2012 planned expenditures for the RFID project have been included in the proposed 2012
Operating Budget. Upon approval by Commission, the RFID related project costs for years
2013-2016 will be included in each year's annual operating budget. A grant provided by the
U.S. Department of Transportation for Congestion Mitigation/Air Quality in the amount of
$500,000 was awarded to the Port and accepted by Commission on August 26, 2008.
Funds required for the project in excess of the grant amount will be funded from the general
fund. The cost of the "trouble site" and DTR subscription is required even if the RFID is not
installed.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 30, 2011 
Page 5 of 6 

Financial Analysis Summary: 
CIP Category        Compliance 
Project Type         Environmental 
Risk adjusted Discount  N/A 
rate 
Key risk factors         Not all RFID project related costs will qualify for reimbursement
under the grant. Total Grant award is $578,035, of which the
Grant reimbursement is limited to $500,000, and requires 13.5%
in matching funds from the Port. The Port's share of required
matching funds is reflected in the Net Operating Income impacts
shown below. 
A key risk factor is the continued availability of grant
reimbursement over the planned five year project timeline. This
risk has been mitigated by contacting the grantor and confirming,
in writing, the continued eligibility of funds from the existing
grant and by confirming the grant qualified eligibility of planned
spending. 
Project cost for analysis  N/A 
Business Unit (BU)     Container Operations 
Effect on business      The impact of the RFID project and related grant reimbursements to
performance         Net Operating Income After Depreciation is shown below. 
NOI (in $000's)         2012    2013    2014    2015    2016   TOTAL
Grant Revenue        140    118    118    118      7    500
Operating Expense      (339)   (202)   (206)   (209)   (213)  (1,170)
NOI             (200)    (85)    (88)    (91)   (206)   (670)
Depreciation            0      0      0      0      0      0
NOI After Depreciation    (200)     (85)     (88)     (91)    (206)    (670)
IRR/NPV         N/A 

ECONOMIC IMPACTS AND BUSINESS PLAN OBJECTIVES: 
Proceeding with this project will give the Port the ability to maintain the Clean Truck Program
for the next five years and to gather information needed for the implementation of the next phase
of the program. 
STRATEGIC OBJECTIVES: 

This MOU supports the Port's strategic objective to Exhibit Environmental Stewardship through
our Actions. The Port strives to integrate environmental and business objectives into our

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 30, 2011 
Page 6 of 6 
business and this MOU exemplifies how we are working with our tenants to emphasize the
Port's commitment to environmental stewardship and to seeking opportunities to improve air
quality and protect, preserve, and enhance natural resources under our ownership. For example,
less idling in truck queues and more efficient truck movement within the terminals reduces the
emissions, which leads to cleaner air; and 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Continue with the sticker program. This is the lowest cost alternative but does not
provide critical specific truck visit data to enable the Port to plan for future changes to the 
truck program. This alternative does not support potential enhancements to the security
check at terminal gates. 
Install a different RFID system at our terminal gates. This alternative could be a lower
cost system overall but would not be consistent with how trucks are handled in California
and may require significant investment by either the Port or the terminal operators to
integrate this with the terminal gate operating systems. The terminal operators have
indicated they would not accept this alternative if we have to modify their gate operating
systems to make this functional. 
Implement the same RFID system as has been done successfully in California. This
proven system supports both the future enhancements to our truck program and any
potential enhancements to terminal gate operations. The Port's RFID grant was
awarded for this purpose and is the recommended alternative. 

OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Memorandum of Understanding between Port of Seattle and SSA Terminals; Total Terminals,
Inc.; and Eagle Marine Services. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
August 26, 2008  The Commission authorized the Port to accept a U.S. Department of
Transportation Congestion Mitigation and Air Quality grant for $578,035 and to provide
matching Port funds of 13.5% or $78,035. And if appropriate, authorized the Port to
execute a Memorandum of Understanding with terminal and rail operators for the grant
project when needed.