PORT OF SEATTLE 
MEMORANDUM 

COMMISSION AGENDA             Item No.      6b 
Date of Meeting        April 21, 2009 
DATE:    March 31, 2009 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Peter Garlock, Chief Information Officer 
SUBJECT:  PeopleSoft HRMS 9.0 Project Additional Funding 
REQUEST:  Request for authorization for the Chief Executive Officer to approve all work and
contracts including: advertise, award, administer, prepare, execute and amend any
and all necessary service agreements for the implementation of PeopleSoft HRMS
9.0 Project, including additional funding of $550,000 for a total project amount
not to exceed $4,300,000. 

BACKGROUND 
The Port of Seattle uses PeopleSoft's Human Resource Management System (HRMS) to
administer payroll and manage benefits for all employees. The software version now being used
has been in place at the Port since 2001 and is obsolete. In addition, the infrastructure (servers
and database platform) which this system operates on is so outdated that it is at risk of a major
failure. 
In late 2007, Information and Communications Technology (ICT), received Commission
approval to replace the current HRMS infrastructure and software. The project was initially
estimated to cost $3,750,000 and take 12 months to complete. For reasons summarized below,
the new system will require an additional $550,000 to complete, and will become fully
operational at the end of June 2009. 
UNANTICIPATED ISSUES: 
The significant functional differences and additional features inherent in the new
software required lengthy discovery, and detailed analysis of extremely complex, legacy 
payroll and benefits business processes. In addition, to ensure that the new software was
properly configured to accommodate all of these processes, exhaustive formal testing was
conducted on each process. 
Customized, complex interfaces to numerous other Port information systems were
discovered during implementation that had to be analyzed, rewritten, and thoroughly
tested for the new system. 
The highly specialized technical staff resources needed to implement the new system
turned out to be more difficult to acquire and retain than anticipated, due to

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 31, 2009 
Page 2 of 4 

recruiting/compensation issues, and professional services procurement/contracting
challenges. 
After the project was underway, several new business processes caused required
reconfiguration and changes to both the old and new systems, which took project
implementation resources away from their primary focus and effectively stopped progress
on the project. In one example, ICT systems enginee rs had to reconfigure and test both
the old and new systems to quickly accommodate payroll tax changes driven by the 2009
Economic Stimulus Act. In another example, both systems had to be modified to
accommodate payroll deductions and calculations required by changes to the benefits
plan which deducts ten percent in premium sharing for employees who did not meet the
wellness challenge. 
REQUIRED ACTION 
In order to complete the HRMS project, additional funding authorization in the amount of 
$550,000 is requested. This additional cost raises the total cost of the project to $4,300,000 from
the original estimate of $3,750,000. 
PREVIOUS COMMISSION REVIEW/ACTION 
The Commission authorized this project on September 11, 2007 with an original project budget 
of $3,750,000. 
ALTERNATIVES CONSIDERED/RECOMMENDED ACTION 
The project team analyzed the following two options: 
Request additional funding and continue the project: With the additional funding, the
project team is confident that it can complete the re-implementation and ensure a quality
deployment by July 2009. This alternative will allow the Port to fully realize the benefits
of the investment made to date and mitigate the risks inherent in continuing to use the
existing version. This is the recommended alternative. 
Cancel the project: This is not the recommended solution due to the following risks: 
o  End of Life PeopleSoft Support Risk: Since March 2007, the Port has been
responsible for resolving any new software issues with the product. The Port is 
incurring operating costs for maintaining obsolete, unsupported, and custom
software. 
o  Disaster Recovery Risk: The HRMS software system resides on a legacy Hewlett-
Packard (HP) server. This server does not have a "fail over" or redundant back up
environment to easily recover from the increasing risk of a potential hardware
system failure. 
In addition, the server maintenance agreement expires in December 2009 when it
will no longer be supported by the vendor.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 31, 2009 
Page 3 of 4 

PROJECT DESCRIPTION/SCOPE OF WORK 
Project Statement 
Eliminate the risk of a catastrophic PeopleSoft HRMS infrastructure failure by completing the
replacement of the current unsupported system with new infrastructure and new software
(PeopleSoft 9.0). 
Project Objectives 
Eliminate risk of catastrophic failure due to data loss and support to the existing legacy
PeopleSoft 8.0 environment. 
Implement the current, supported version of PeopleSoft HRMS. 
Scope of Work 
This project provides new services and functionality inherent in PeopleSoft Human Resources,
Benefits, and Payroll version 9.0. 
STRATEGIC OBJECTIVES 
This project supports the following Port strategies: 
Be a High-Performance Organization: The implementation of PeopleSoft HRMS 9.0 will provide 
productivity-enhancing technology into our workplace. 
Exhibit Environmental Stewardship through our Actions: The new Production servers purchased
for the project require much less power, thereby conserving energy. 

FINANCIAL SUMMARY: 
Budget Authorization Summary 
Original Budget                                 $3,750,000 
Budget Transfers                                 $550,000 
Revised Budget                               $4,300,000 
Previous Authorizations                            $3,750,000 
Current request for authorization                         $550,000 
Total Authorizations, including this request                $4,300,000 
Remaining budget to be authorized                          $0 
Source of Funds 
This is an Enterprise-wide renewal and enhancement project funded 64% Airport Development
Fund and 36% General Fund.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 31, 2009 
Page 4 of 4 

Upon authorization, $550,000 budget will be transferred from the Services Technology Small
Capital CIP (C800012) to the PeopleSoft Upgrade Project CIP (C800096). 
PROJECT SCHEDULE 
Key Project Dates: 
Integration Testing and User Acceptance Testing completedApril, 2009 
End User Training completedJune, 2009 
DeploymentJune, 2009 
Project CompletionJuly, 2009