PORT OF SEATTLE 
MEMORANDUM 

COMMISSION AGENDA            Item No.      8d 
Date of Meeting    February 24, 2009 
DATE:    February 3, 2009 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Michael Ehl, Director Airport Operations 
Nick Harrison, Senior Manager Airport Operations 
SUBJECT:  Authorizing the Chief Executive Officer to Transfer Ownership of Security
Equipment from the Port of Seattle to the Transportation Security
Administration 

ACTION REQUESTED 
Resolution No. 3612, declaring surplus and no longer needed for Port District purposes
certain personal property used in passenger screening at Seattle-Tacoma International Airport,
including eight (8) x-ray machines, seven (7) explosive trace detection machines and
seventeen (17) walk-through metal detectors (collectively "Property"); and authorizing the
Chief Executive Officer to execute all documents necessary for transfer of the Property to the
Transportation Security Administration (TSA) for adequate consideration, including payment
of one dollar per unit of equipment and the assumption of costs and liabilities associated with
maintaining and disposing of the Property. 
First Reading 
Public Hearing 
SYNOPSIS 
Airport Operations requests the transfer to the TSA of some aging checkpoint security
equipment with a current book value of approximately $100,000. This equipment is used
around the clock at passenger security checkpoints at Seattle-Tacoma International Airport
(Airport). The transfer relieves the Port of the costs of owning and disposing of this
equipment, and will allow the TSA to continue to perform maintenance on the equipment. 
Although owned by the Port, the equipment has been previously maintained by the TSA for
the Airport. A new Agreement between the TSA and its maintenance subcontractor restricts
the subcontractor to maintaining only equipment owned by the TSA. The TSA has proposed
that ownership of the equipment, purchased in 2002 by Port of Seattle, should be transferred
to the TSA to allow continued use and maintenance of the equipment without disrupting the
operation of the passenger checkpoints.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 3, 2009 
Page 2 of 6 

Port of Seattle staff recommends that the equipment be transferred to the TSA at a nominal
cost of one dollar ($1) per unit. In the future, the TSA will own and operate all passenger
checkpoint equipment and will be required to upgrade the equipment to meet the latest TSA
standards. It is unlikely that the Port would be able to find a buyer for this aging equipment.
The Port would ultimately bear the disposal costs if the equipment is not transferred to the
TSA. This transfer benefits both the Port and the TSA and reflects the ongoing cooperative
relationship between the two agencies. 
Under state law, a port district may sell and convey real or personal property valued at more
than $10,000 when the Port Commission has, by resolution, declared that the property is no
longer needed for district purposes (RCW 53.08.090). If the Commission agrees with Port
staff's recommendation to transfer this equipment to the TSA as a result of its review of the
surrounding facts and circumstances, the Commission has the power under RCW 53.08.090 to
pass a resolution authorizing the transfer. 
BACKGROUND 
In May 2002, to meet the needs of the expanded passenger security checkpoints, the Port of
Seattle purchased the equipment listed in the table under the Financial Analysis paragraph
(page 4). All equipment was purchased under CIP C101806, Project ID # 101899. The
original combined purchase price for the equipment was $694,555. The value of this
equipment is typically depreciated over a seven-year period, placing the current value at
approximately $100,000. 
At the time of purchase, operation of the checkpoints was the responsibility of air carriers and
equipment was provided by the Port of Seattle. 
Later in 2002, the TSA was created. The TSA assumed responsibility for operating the
checkpoints as well as providing and maintaining all checkpoint equipment. 
Recently the TSA notified the Port of Seattle that under the TSA's new contract for
maintenance of security checkpoint equipment, its subcontractor will only perform
maintenance on equipment owned by the TSA. 
If the equipment is not transferred to the TSA, the Port will have to engage a company to
perform maintenance on these machines separately from those owned by the TSA. In 2009, 
the TSA plans to replace all checkpoint equipment under their national "Checkpoint
Evolution" program. If this equipment is not transferred to the TSA prior to its replacement,
the Port will bear the cost of its removal and disposal. 
LEGAL AUTHORITY 
Under state law, a port district may sell and convey any of its real or personal property valued
at more than $10,000 when the Port Commission has, by resolution, declared the property to
be no longer needed for district purposes (RCW 53.08.090). The equipment that is the subject

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 3, 2009 
Page 3 of 6 

of this memo is "personal property" with a current book value of approximately $100,000. 
Port staff request that the Commission review the facts and circumstances set forth below to
determine whether the equipment is no longer needed for port district purposes. If the
Commission agrees with staff that the equipment is no longer needed for port district
purposes, the Commission has the power under RCW 53.08.090 to pass the recommended
resolution surplusing the equipment. 
With regard to the request to authorize the transfer of the equipment to the TSA at a nominal
payment of one dollar per unit, if the Commission agrees with staff that the equipment is
surplus, staff will negotiate a contract with the TSA to provide adequate consideration for the
transfer in addition to the nominal payment. Under Washington common law, the courts are
likely to defer to the Commission's determination that consideration is adequate. Under
RCW 39.33.010, the Port "may sell, transfer, exchange, lease or otherwise dispose of any
property, real or personal,...to the state or any municipality or any political subdivision
thereof, or the federal government, on such terms and conditions as may be mutually agreed
upon....." Here, staff can negotiate a contract that imposes obligations on the TSA that have
value to the Port. As noted below, the proposed contract would, upon completion of sale,
require the TSA to assume the cost and liabilities associated with maintaining the equipment
during its useful life and disposing of it at the end of its useful life. Such terms would provide
the basis for the Commission's determination that the consideration is adequate. 
PROJECT DESCRIPTION AND JUSTIFICATION 
The equipment is near the end of its useful life, and it is recommended that it be sold to
the TSA. 
It is unrealistic to expect that a buyer could be found for any of this equipment. 
The equipment contains toxic materials that need to be handled in compliance with
environmental regulations upon disposal. This would add to the Port's cost if the Port
were required to dispose of it when it is replaced in 2009. 
The TSA will provide replacement equipment at its cost when necessary in the future.
Such equipment will meet the newest TSA standards. 
PROJECT SCOPE OF WORK AND SCHEDULE 
Port staff will negotiate a contract that would transfer the equipment to the TSA in exchange
for a nominal payment of one dollar per item on terms that impose certain obligations on the
TSA. The proposed contract will, upon completion of sale, require the TSA to assume the
cost and liabilities associated with maintaining the equipment during its useful life and
disposing of it at the end of its useful life. 
STRATEGIC OBJECTIVES 
This cooperative agreement with the TSA ensures airport vitality by saving costs while also
ensuring the Airport continues to be a leader in security by ensuring proper maintenance of

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 3, 2009 
Page 4 of 6 

equipment and eventual replacement by TSA with new equipment to maximize efficiency and
security for travelers. 
BUSINESS PLAN OBJECTIVES 
Transferring this equipment to the TSA removes future costs for the Port by removing the
responsibility for disposal of the equipment when it is replaced next year. 
Having TSA assume ownership of the equipment results in a reduced total cost of
operation of security checkpoints that is lower than any of the alternatives considered. 
TSA's ownership, maintenance and disposition, in the future, of all equipment brings all
responsibility under one agency and results in economies of scale.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 3, 2009 
Page 5 of 6 

FINANCIAL ANALYSIS 
Net Book
Serial     Purchase  Value at
Equipment               Model No.     Number     Price    12/2008 
Ion Track Instruments Itemizer   P-0007004-006   3024873171   $ 36,286   $ 5,184 
3024873174  $ 36,286   $ 5,184 
3024873190  $ 36,286   $ 5,184 
3024873193  $ 36,286   $ 5,184 
3024873197  $ 36,286   $ 5,184 
3024873198  $ 36,286   $ 5,184 
3024873206  $ 36,286   $ 5,184 
total      $254,002   $36,288 
Rapiscan X-Ray Machine       520B TRX     7021701    $ 40,220   $ 5,746 
7021702    $ 40,220   $ 5,746 
7021703    $ 40,220   $ 5,746 
7021704    $ 40,220   $ 5,746 
7021705    $ 40,220   $ 5,746 
7021706    $ 40,220   $ 5,746 
7021707    $ 40,220   $ 5,746 
7021708    $ 40,220   $ 5,746 
total      $321,760   $45,968 
Ceia Walk Through Metal        02PN10    20106042083  $ 6,868   $ 981 
Detectors                             20106042173  $ 6,868   $ 981 
20106042182  $ 6,868   $ 981 
20106042127  $ 6,868   $ 981 
20106042209  $ 6,868   $ 981 
20106042208  $ 6,868   $ 981 
20106042180  $ 6,868   $ 981 
20106042192  $ 6,868   $ 981 
20104062205  $ 6,868   $ 981 
20106042207  $ 6,868   $ 981 
(wide units)    20106042065  $ 7,159   $ 1,023 
(wide units)    20106042075  $ 7,159   $ 1,023 
(wide units)    20106042164  $ 7,159   $ 1,023 
(wide units)    20106042094  $ 7,159   $ 1,023 
(wide units)    20106042184  $ 7,159   $ 1,023 
(wide units)    20106042076  $ 7,159   $ 1,023 
(wide units)    20106042081  $ 7,159   $ 1,023 
total      $118,793   $16,971 
grand total   $694,555   $99,227

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 3, 2009 
Page 6 of 6 

Financial Implications 
The Port will recognize non-operating expense of $99,200 to write off the undepreciated
value of the assets. 
ALTERNATIVES CONSIDERED 
The Port could maintain ownership of the equipment, and request the TSA's approval to
continue checkpoint operations on this equipment while it is not owned by the TSA. Port
would have to assume responsibility for maintenance of equipment. Later this year when
the TSA provides all new equipment for the checkpoints, the Port would bear the cost of
disposal of this equipment. A separate contract would not be economical and disposing of
the equipment would cost more than its estimated value. This alternative is not
recommended. 
Do nothing. If no action is taken, there will be no maintenance contract in effect to repair
the equipment when it breaks down. The TSA may refuse to operate equipment on which
regular maintenance is not being performed. The Port will have to bear the cost of
disposing of the equipment when it is replaced next year. Disposal would cost more than
its estimated value. This alternative is not recommended. 
Surplus the equipment and transfer ownership to the TSA with the condition that TSA will
be responsible for maintenance of the equipment and disposal of the equipment at the end
of its useful life. This alternative is recommended. 
TRIPLE BOTTOM LINE 
This action minimizes life cycle costs for the Airport and will ultimately improve passenger
processing for business and community travelers. 
DELEGATION OF AUTHORITY 
While the law permits the Commission to delegate its authority to the Chief Executive Officer 
to sell or convey property valued at $10,000 or less, for property valued at greater than
$10,000, the Commission must first determine the property surplus. See discussion in Legal
Authority above. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
Purchase of the equipment was approved by Commission on February 28, 2002.