8c. Memo

Energy Management System Project

COMMISSION 
AGENDA MEMORANDUM                        Item No.          8c 
ACTION ITEM                            Date of Meeting       April 26, 2022 

DATE :     April 15, 2022 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Sandra Kilroy, Senior Director Environment, Sustainability, and Engineering 
Mike Tasker, Senior Manager Aviation Facilities and Infrastructure 
Krista Sadler, Director Technology Delivery 
SUBJECT:  Energy Management System (CIP #C801166) 
Amount of this project request:           $540,000 
Total estimated project cost:              $540,000 
Ten-year maintenance contract:        $3,500,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to 1) proceed with the Energy
Management System project and 2) execute contract(s) for software, equipment, vendor
services, and ten years of software license and maintenance fees. The amount requested for
project  implementation  is  $540,000  and  the  estimated  ten-year  software  license  and
maintenance fee is $3,500,000. 
EXECUTIVE SUMMARY 
This project will procure and implement a Port-wide energy management system (EMS) capable
of tracking, managing, analyzing, and reporting on facility energy consumption and performance
data. The system will be used for both Aviation and Maritime properties and will be designed to
be highly scalable and customizable to match the Port's diverse lines of business and incorporate
future needs. During implementation, the project will connect approximately 85 existing smart
meters for utilities on Waterfront properties, SEA North Concourse, and Port solar panel inverters 
and will be designed to add meters as they are installed by other projects. 
Accurate, readily available data on current and historical facility energy and fuel use is critical to
make informed, sustainable investments and operational improvements that advance the Port's
Century Agenda and maintain regulatory compliance. This data is currently collected as a byproduct
of cost recovery efforts and requests for building energy data require long lead-times,
significant staff resources, and rigorous data manipulation and accuracy checks. The EMS will
provide a centralized, cross-departmental database and management system to facilitate the
capture and reporting of this information. 

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 8c                                   Page 2 of 5 
Meeting Date: April 26, 2022 
Information and Communication Technology, Environment, Sustainability, and Engineering,
Aviation Facilities, Economic Development will partner to deliver this project. The capital project
was included in the 2022-2026 capital budget and plan of finance as a $400,000 Maritime and
Economic Development project. During development of the business case, the scope was
expanded to include Aviation in a Port-wide EMS implementation so CIP C801166 has been
reassigned as a Corporate CIP and the additional $140,000 will be added to the capital budget
and plan of finance for 2023, for a total estimated project cost of $540,000. Project funding will
be fifty percent Airport Development Fund and fifty percent General Fund. 
This authorization also includes a contract for recurring software license and maintenance fees
for up to ten years, estimated at $3,500,000. This includes an annual escalation for the addition
of smart meter connections through the life of the contract. This will be budgeted by individual
operating budgets depending on the number of data points captured. 
JUSTIFICATION 
The EMS provides an innovative approach that advances the Century Agenda goals to be the
greenest, most energy efficient port in North America and to be a highly effective public agency.
Specifically, the EMS supports Port of Seattle Resolution 3792 to adopt Charting the Course to
Zero: Port of Seattle's Maritime Climate and Air Action Plan, Port of Seattle resolution 3768, a
Sustainable Evaluation Framework Policy Directive,  and Washington Clean Buildings Act
(HB1257). 
Other benefits include: 
(1)   Ability to isolate performance data at a variety of levels such as portfolio, campus,
building, or asset. 
(2)   Aggregate building-level energy use information to meet compliance and regulatory
requirements more efficiently and to support investment decision-making, operations,
and maintenance.
(3)   Inform strategic investment in Port assets and facilities using asset performance
metrics.
(4)   Support Asset Condition Tracking Program related to building and energy assets.
(5)   Serve as the foundational tool to remotely integrate smart facility technologies and
controls software across the Port.
(6)   Enable remote meter reading to reduce safety risks to staff and costs.
(7)   Provide  faster  notification  to  staff  when  there  is  abnormally  high  usage,
indicating possible problems needing immediate attention. 
(8)   Support port-wide awareness of resource consumption and enable data-driven internal
and external communications. 



Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 8c                                   Page 3 of 5 
Meeting Date: April 26, 2022 
Diversity in Contracting 
Project staff will work with the Diversity in Contracting Department to determine if a direct
women-and-minority-owned business enterprise (WMBE) aspirational goal should be assigned.
Typically, subcontracting opportunities under technology projects are limited. 
DETAILS 
Scope of Work 
(1)   Competitively procure and implement an EMS to collect, track, and report on energy
consumption and performance data. 
(2)   Connect approximately 85 existing smart meters for Maritime and Aviation Properties. 
(3)   Upload historical energy use data. 
The purchase and installation of additional smart meters that can be integrated with the EMS will
occur with other projects. 
Schedule 
System Procurement Complete                2022 Quarter 4 
In-use date                                       2023 Quarter 3 
Cost Breakdown                                     This Request           Total Project 
Hardware, Software, and Vendor Services                 $300,000              $300,000 
Port Labor                                                 $240,000               $240,000 
Total                                                          $540,000                $540,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Procure and install EMS and additional smart meters for Waterfront and Aviation 
properties. 
Cost Implications: Capital Range: $1,500,000 - $2,000,000 
Pros: 
(1)   Provides  a  more  complete  energy  usage  picture  for  Port  buildings  with  project
completion. 
Cons: 
(1)   The addition of meter installation significantly increases the complexity, schedule, and
change management challenges from the recommended phased approach. A measured
implementation will allow the project team to set a foundation for the new platform
that can easily be expanded as more smart meters are added through other projects. 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 8c                                   Page 4 of 5 
Meeting Date: April 26, 2022 
(2)   It is likely more cost efficient to add smart meters to many locations with larger, planned
construction efforts. 
This is not the recommended alternative. 
Alternative 2  Postpone procurement and implementation of an EMS 
Cost Implications: $0 
Pros: 
(1)   Capital funds and resources are available for other efforts. 
Cons: 
(1)   Port staff continue with inefficient manual processes to gather and report on energy
use, which fails to meet business demands for more current, accessible, and accurate
data. 
(2)   Delays valuable data support for decision making to improve energy performance and
effective energy reporting. 
This is not the recommended alternative. 
Alternative 3  Procure and implement an EMS and connect existing smart meters 
Cost Implications: $540,000 
Pros: 
(1)   Allows staff to implement a foundational, scalable EMS solution and provides a required
data repository for tracking, managing, and reporting on energy usage. 
(2)   Will provide easily accessible online access to resource consumption data, reports, and
analytics that is known to be of significant value to many Port departments. 
(3)   Supports Port Century Agenda Goals and our LEED electricity monitoring commitment
with state energy code, initially at Airport North Concourse and expanding with new
projects. 
Cons: 
(1)   Will not provide a complete energy usage picture for all Port buildings without
additional investments. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary               Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                   $400,000               $0        $420,000 
Current change                                  $140,000              $0       $140,000 
Revised estimate                                  $540,000              $0        $540,000 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 8c                                   Page 5 of 5 
Meeting Date: April 26, 2022 
AUTHORIZATION 
Previous authorizations                                   $0                0                0 
Current request for authorization                  $540,000               $0        $540,000 
Total authorizations, including this request         $540,000               $0        $540,000 
Remaining amount to be authorized                    $0             $0             $0 
Annual Budget Status and Source of Funds 
The project was budgeted in the 2022-2026 plan of finance as a Maritime and Economic
Development project for $400,000. During development of the business case, the scope was
expanded to include Aviation in a Port-wide EMS implementation so CIP C801166 has been
reassigned as a Corporate CIP and the additional $140,000 will be added to the capital budget
and plan of finance for 2023, for a total estimated project cost of $540,000. Project funding will
be fifty percent Airport Development Fund and fifty percent General Fund. Training, estimated
at $20,000, will be funded by individual departments benefiting by the training. 
Financial Analysis and Summary 
Project cost for analysis              $540,000 
Business Unit (BU)                  Aviation's cost center would be Terminal Building 
Effect on business performance     NOI after depreciation will increase due to inclusion of
(NOI after depreciation)             capital (and operating) costs in airline rate base. 
IRR/NPV (if relevant)                NA 
CPE Impact                       Less than .01 in 2023 
Future Revenues and Expenses (Total cost of ownership) 
Annual recurring service, license, or maintenance fees, estimated initially at $220,000 per year,
will be budgeted in annual operating budgets beginning in 2023. As smart meters are added, the
cost will likely increase so the estimated total over a ten-year contract term is $3,500,000 in
addition to the vendor costs for implementation. 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None 



Template revised June 27, 2019 (Diversity in Contracting).

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