PORT OF SEATTLE 
MEMORANDUM 

COMMISSION AGENDA             Item No.:       6b 
ACTION ITEM 
Date of Meeting:    September 28, 2010 
DATE:    September 3, 2010 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Dan Thomas, Chief Financial Officer 
Peter Garlock, Chief Information Officer 

SUBJECT:  Peoplesoft Financials Upgrade Project - CIP# C800392 
Amount of This Request:   $5,000,000    Source of Funds:  64% Aviation Fund, 36%
General Fund 
State and Local Taxes Paid:  $47,000 
Total Project Cost:  $5,000,000 

ACTION REQUESTED: 
Request authorization for the Chief Executive Officer to approve all work and contracts
including executing and amending any and all necessary contracts and service directives to
acquire necessary hardware, software, and contract implementation services for the PeopleSoft
Financials Upgrade Project in an amount not to exceed $5,000,000. 
SYNOPSIS: 
The Port of Seattle currently uses Oracle's PeopleSoft Financial system version 8.4, toprovide 
all accounting, procurement, and financial reporting functions.  Specific business functions
include: general ledger, purchasing, accounts payable, project costing, time and labor, accounts
receivable, billing and asset management. 
The current financial system was last upgraded in 2004. Numerous software upgrades have been
postponed since then in order to save costs. As a result, the system is now several major versions
behind Oracle's present software release.  Of greater concern is the fact that the system is
platformed on out of date infrastructure (servers, database, and operating system software) which
is either obsolescent, or no longer supported by the vendor.  Lastly, in the 2008 Financial
Statement Audit, Moss Adams observed that the Port should not rely upon the financialsystem 
currently in place because of it's age, limited venor support, and lack of certification. 
To remedy the situation, ICT will select an implementation vendor through a formal Request for
Proposal  process to assist internal staff with an  upgrade of the software and hardware

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 3, 2010 
Page 2 of 5 
components of the PeopleSoft financial system. This upgrade will bring the financial system 
software up to date, and also  transition  the hardware  to the standardized infrastructure
environment that is utilized for all other major ICT systems.
PROJECT JUSTIFICATION: 
The upgrade of PeopleSoft Financials software and hardware will address the following critical
issues: 
Oracle stopped providing technical support, patches, updates, and enhancements for the
Port's current software version and ceased providing tax, legal and regulatory updates in
March of 2008. 
The Letter of Recommendation resulting from the Port's 2008 Financial Statement Audit
performed by Moss Adams included an observation that the Port utilizes PeopleSoft
Financials 8.4, which was released in March of 2002, and is no longer supported. Moss
Adams recommends that the Port consider the potential impacts of operating legacy
financial applications and operating systems with limited vendor support, and our use of
uncertified third-party solutions. 
The Port has been responsible for resolving any software issues which results in
increasing operating costs to maintaining obsolete and unsupported software. 
The current database platform, Sybase, is not an ICT standard. It has major performance
issues and requires extensive downtime for maintenance. 
Hewlett Packard hardware, on which the current financial system databases reside, is not
an ICT standard, and will be out of support in 2011. 
PROJECT STATEMENT AND OBJECTIVES: 
Project Statement: 
The focus of this project is to upgrade software to the latest supported version, replace 
customizations with built-in functionality when possible, and upgrade the underlying technical
infrastructure. 
Project Objectives: 
Upgrade PeopleSoft Financials to the latest version 
Eliminate customizations by using enherent functionality wherever possible 
Implement new functionality as appropriate to business processes. 
Upgrade underlying technical infrastructure to assure reliability, availability, and
improved system performance.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 3, 2010 
Page 3 of 5 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
Upgrade the PeopleSoft Financials modules to the latest version. No new modules will be
implemented as part of this project. 
Upgrade existing interfaces to be compatible with the new PeopleSoft Financials version.
Development of new interfaces will be deferred to future projects. 
Eliminate or minimize existing customizations, whenever possible, using built-in
functionality in the new version. Deploy new functionality that can be implemented with
no customizations. New functionality requiring customization will be deferred to future
projects or prioritized as part of ongoing maintenance and support. 
Custom reports, currently available outside the PeopleSoft system in the MIS Intranet
Reporting application, will be replaced with PeopleSoft delivered reports or developed
within Port of Seattle Technical Architecture Standards. The estimates for this work,
included in this budget request, are preliminary and will be revised when more data is
available from detailed analysis to be completed during the design phase. If needed,
additional funds for custom reports would be requested after completion of detailed
analysis next spring. 
Upgrade the system technical infrastructure and replace with standard hardware and
operating system software. 
The project team will include support from a qualified implementation partner experienced in
upgrading to the latest PeopleSoft version. This consulting services vendor will be selected via a
Request for Proposal. 
Schedule: 
Commission Approval                              September 2010 
Contract with Implementation Partner executed                 December 2010 
Project Start                                            March 2011 
Upgrade Complete                                August 2012 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary: 
Original Budget                                                $4,500,000 
Budget Increase  Transfer from CIP# C800393 Police Records and
Document Management System                                  $500,000 
Revised Budget                                              $5,000,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 3, 2010 
Page 4 of 5 
Previous Authorizations this CIP                                            $0 
Current Request for Authorization                                     $5,000,000 
Total Authorizations, including this request                                 $5,000,000 
Remaining budget to be authorized                                         $0 
Project Cost Breakdown: 
Port of Seattle Labor and Contractors                                    $1,806,000 
Vendor Implementation                                         $2,200,000 
Software Licenses & Hardware                                      $492,000 
Contingency ~10%                                          $455,000 
Tax 9.5%                                                 $47,000 
Total Capital Costs                                            $5,000,000 
Core Project Team Training                                         $100,000 
Staff Time for Business Process Work and End User Training                    $500,000 
Total Expense Costs                                           $600,000 
Recurring Cost Breakdown: 
There is no expected change in recurring costs for external support or license agreements as a
result of this project. 
Budget Status and Source of Funds: 
This project is included in the 2010-2014 capital budget and plan of finance within CIP#
C800392, PeopleSoft Financials Upgrade. Upon authorization, the original budget of $4.5
million will be increased to $5 million through a transfer of funds from CIP# C800393 Police 
Records and Document Management System, where the $500,000 is not needed. The source of
funds is 64% Airport Development Fund, 27% General Fund, and 9% Tax Levy. 
Financial Analysis and Summary: 
CIP Category                       Renewal/Replacement 
Project Type                        Technology 
Risk adjusted Discount rate               7.0% 
Key risk factors                        NA 
Project cost for analysis                   $5,000,000 
Business Unit (BU)                   Accounting & Financial Reporting 
Effect on business performance            NA 
5 Year NPV/IRR                   NA 
CPE Impact                      NA

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 3, 2010 
Page 5 of 5 
Lifecycle Cost and Savings: 
This project is renewal and replacement of a critical Port of Seattle system ensuring continued
availability and security. 
ECONOMIC IMPACTS AND BUSINESS PLAN OBJECTIVES:
Proceeding with this project ensures that a system supporting critical business functions across
all organizations within the Port of Seattle continues to operate reliably and efficiently. 
STRATEGIC OBJECTIVES: 
This project supports the following Port strategies: 
Be a high performance organization: Use of the new system will result in increased
productivity due to improved support for business functions 
The cleanest, greenest, most energy efficient Port in the nation: New hardware will
improve energy efficient infrastructure 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
1.  Upgrade PeopleSoft Financials:  With this investment, the Port will have a fully
supported PeopleSoft Financials system. This is the recommended alternative. 
2.  Replace PeopleSoft Financials with another system: The implementation of another
financials system would cost significantly more in both dollars and staff time to
implement. This is not the recommended solution. 
3.  Do Nothing: With this option, the Port incurs high risks for the continued availability
and security of this critical financial system. This is not the recommended solution. 

OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
No other documents are associated with this request. 
PREVIOUS COMMISSION ACTION OR BRIEFING: 
No previous commission action.