PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA            Item No. _________5b_______ 
Date of Meeting: April 13, 2010 

DATE:    March 25, 2010 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Lindsay Pulsifer, General Manager, Marine Maintenance 
Nora Huey, Director, Central Procurement Office 
SUBJECT:  Purchased Services Contract for Mechanical Systems (HVAC) 
Amount of This Request: $2,200,000  Source of Funds: Tax Levy or General
Fund 
State and Local Taxes Paid: $180,000  Est. Workers Employed: 2-5 
ACTION REQUESTED:
Request authorization for the Chief Executive Officer (CEO) to execute a contract for
maintenance and repair of mechanical systems (Heating, Ventilation and Air
Conditioning, HVAC) systems at Seaport and Real Estate assets. The contract, which
will be competitively bid, will be awarded for one year with four one-year options to be
exercised at the Port's sole discretion; the total value of the contract will not exceed
$2,200,000. 
SYNOPSIS: 
This will provide for maintenance and minor repair of Heating, Ventilation and Air
Conditioning (HVAC) at Seaport and Real Estate facilities. A full scope of service is
included in the agreement. The contract will not be utilized if the tenant is responsible
for maintenance and repair according to the lease. The contract will not include any work
meeting the definition of "public work" under RCW 39.04.010, and any deficiencies
discovered that require "public work" will be bid and awarded separately through
Contract Services, Central Procurement Office.
BACKGROUND: 
Marine Maintenance is responsible for providing maintenance and repair for HVAC
mechanical systems to Seaport and Real Estate properties. Cost benefit analysis has
always supported using a contracted vendor rather than self performing. (Each year
before we decide to exercise an option for extension we will consider the current Marine
Maintenance workload and analyze current contract costs to determine of this work
should be absorbed by the maintenance shop). Historically we have awarded separate

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 25, 2010 
Page 2 of 4 
contracts for maintenance and for repair. Marine Maintenance paid $315,000 in HVAC
maintenance in 2009, and these costs have been increasing 5 to 15 percent each year. 
As part of acquisition planning, the Port determined it is appropriate to combine the
maintenance and minor repair work into one contract, now that the old contracts have
expired. We estimate that expenses will not exceed $350,000 in the first year, $400,000
in the second year, $450,000 in the third year and a maximum of $1 million (total) for
years four and five; consequently, we are requesting an authorization not to exceed
$2,200,000 for five years. After the first year of the contract, the four one-year options
will be exercised at the Port's sole discretion.
PROJECT DESCRIPTION AND OBJECTIVES: 
Complete ordinary HVAC preventive maintenance as defined by manufacturers' 
recommendations and Marine Maintenance approval. 
Complete ordinary expected maintenance in accordance with Marine Maintenance
recommendations and approval. 
Complete immediate response repair work. 
PROJECT SCOPE OF WORK: 
The contractor will perform Mechanical Equipment Maintenance Service
(hereinafter referred to as the "Services" and/or the "Work") on Seaport and Real
Estate HVAC equipment. Mechanical equipment maintenance includes
preventative and expected maintenance services and will be provided unless
otherwise noted. The Work will be performed at various waterfront facilities
specified in the contract. The contractor will be responsible for maintaining or
repairing the systems utilizing non-proprietary equipment. The contract will not be
utilized if the tenant is responsible for maintenance and repair according to the
lease.
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary 
Expenses in 2008                             $217,991 
Expenses in 2009                             $314,872 
Current request for authorization                    $2,200,000 
Remaining budget to be authorized                       $0 
Project Cost Breakdown 
Maintenance and repair, first year of contract             $322,000 
Sales tax, first year                                  $28,000 
First option year extension                          $367,000 
Sales tax, first option year                            $33,000 
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COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 25, 2010 
Page 2 of 4 
Second option year extension                      $413,000 
Sales tax, first option year                            $37,000 
Third option year extension                        $459,000 
Sales tax, first option year                            $41,000 
Fourth option year extension                       $459,000 
Sales tax, first option year                            $41,000 
Total                                       $2,200,000 
Source of Funds: 
All dollars for this contract for 2010 are included in the Commission approved Marine
Maintenance expense budget: $305,225 has been budgeted and approved for 2010. All
funding for the remainder of the contract will also be budgeted for in the Marine
Maintenance expense budget. 
STRATEGIC OBJECTIVES: 
Ensure Airport and Seaport Vitality 
The contract supports the business strategies to "Ensure Airport and Seaport Vitality" by
maintaining valuable assets of the Port and ensuring continued revenue from existing
tenants by providing them with appropriate heating and cooling of their leased space.
Exhibit Environmental Stewardship through our Actions 
The contract supports the Port's commitment to the environment by ensuring that we
properly maintain our equipment, which will ensure efficiency of the mechanical systems
and reduce waste. 
BUSINESS PLAN OBJECTIVES: 
This project furthers the Port's ability to continue to lease buildings and to create
a comfortable working environment for Port staff, tenants and customers. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1: Do nothing. 
Under this alternative only minor maintenance or repair to our HVAC systems would be
done, and that maintenance and repair would be limited to boiler work, ducting, or other
work that current Marine Maintenance employees are qualified to do. Equipment would
fall into disrepair and create deferred maintenance backlog. Tenant concerns would not
be addressed and the Port would lose tenants when their leases expire. This alternative is
not recommended. 
Alternative 2: Hire HVAC Specialists and Self Perform the Work. 

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COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 25, 2010 
Page 2 of 4 
This alternative is not currently viable because the Plumber's Local 32 currently does not
have any skilled HVAC technicians available. We will continue to evaluate the
availability of skilled craftworkers and cost of contracted work. If we determine that this
option is viable, we may not grant the option for years 4 or 5 of this contract, and decide
to self perform the work. 
Alternative 3: Execute a Contract for Maintenance and Repair. 
Equipment will be maintained in accordance with manufacturer specifications or Facility
Maintenance Manager's recommendations. Repair will be done timely by a qualified
technician. Customer/tenant spaces will be kept at the proper environment. 
This is the recommended alternative. 
PREVIOUS COMMISSION ACTIONS: 
None. 











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