Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6c
ACTION ITEM
Date of Meeting
October 8, 2019
DATE: September 13, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Lisa Drake, Commander
Rodney Covey, Chief of Police
SUBJECT: Acceptance of FEMA Port Security Grant Award for Port of Seattle Police Boat
Amount of this request:
$900,000
Total estimated procurement cost:
$900,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) accept a Federal Emergency
Management Agency (FEMA) Port Security Grant Program (PSGP) award in the amount of
$659,843 for the procurement of one Port of Seattle police boat; (2) execute a contract to buy a
police boat; and (3) authorize the Port of Seattle share of the project in the amount of $240,157,
which includes a 25 percent cost match mandated by the FEMA grant program, for a total
procurement cost of $900,000.
EXECUTIVE SUMMARY
This request provides funding for a new police boat. The Port of Seattle applied for and was
awarded partial funding of a $879,791 application through the FEMA Port Security Grant Program
(PSGP). This grant funds 75 percent of the grant award with a mandatory 25 percent match. The
Port of Seattle Police currently have a single boat, 13 years of age. Port of Seattle Police are
responsible for providing waterside security during cruise ship season, as mandated by the
United States Coast Guard, serve as a regional asset to other agencies, respond to waterside
protests, and respond to other security related incidents affecting the Port of Seattle. The Port
of Seattle cruise season sees over 200 cruise ships annually, 1.2 million passengers, generates
$900 million in annual business revenue, $18.9 million in annual state/local taxes, and creates
5,500 jobs. By providing security to the seaport, the Port of Seattle Police are a contributing piece
in support of the Century Agenda, Strategy 2: Advancing this region as a leading tourism
destination and business gateway and Strategy 3: Use our influence as an institution to promote
small business growth and workforce development.
Safety and security are critical to maintaining commerce on the waterways of the Port of Seattle.
In addition to the expansive cruise ship season the Port of Seattle experiences, the three inter-
modal facilities represent annual movement of approximately 2,000,000 TEUs (twenty-foot
COMMISSION AGENDA – Action Item No. 6c Page 2 of 6
Meeting Date: October 8, 2019
Template revised June 27, 2019 (Diversity in Contracting).
equivalent units). An additional Port of Seattle police boat would ensure the current aging police
vessel does not leave the Port without USCG regulatory compliance and coverage during
significant events such as: multiple cruise ships in port, response to protest activities, and
coverage of special events such as SeaFair.
Accepting the FEMA Port Security Grant will provide 75 percent of the funding for the cost of a
new police boat. The Port of Seattle is responsible for a 25 percent cost match of federal funds,
and an additional $20,209 for grant ineligible costs that are necessary for the successful
completion of the procurement. In return, the Port of Seattle will obtain a new police boat to
stay current with USCG regulatory requirements for a growing maritime transportation system
and economy. A new boat will enhance the ability to have a police boat on water and provide
presence during critical events and maintain U.S. Coast Guard regulatory compliance to have an
on-water police presence when two or more cruise ships are in port, waterside protests, and
other emergent law enforcement and security needs.
JUSTIFICATION
This project supports the following Century Agenda and Maritime goals:
(1) Advance this region as a leading tourism destination and business gateway
(2) Use our influence as an institution to promote small business growth and workforce
development
This project ensures the safety and security requirements agreed upon to with the United States
Coast Guard are met under Title 33 Code of Federal Regulations, Parts 101, 104, and 105. This
includes the detection and mitigation of dangerous substances and devices from being brought
onto or on the adjacent waters of our Maritime Transportation Security Act (MTSA) regulated
facilities.
Ensuring the safety and security of the waters supports the growth of the cruise ship industry to
the Port of Seattle, facilitating job growth and tourism to the area.
Diversity in Contracting
Due to the limited companies building and outfitting law enforcement maritime vessels, there
are no small minority women owned companies building law enforcement maritime vessels.
DETAILS
To procure a police boat by following the Port, State, and Federal competitive process.
Scope of Work
Procure a police boat and provide training on the operations of the new boat.
COMMISSION AGENDA – Action Item No. 6c Page 3 of 6
Meeting Date: October 8, 2019
Template revised June 27, 2019 (Diversity in Contracting).
Schedule
Activity
2019 Quarter 4
2019 Quarter 4
2020 Quarter 2
2020 Quarter 3/4
2021 Quarter 1/2
2021 Quarter 3
2021 Quarter 4
2022 Quarter 1
Cost Breakdown
This Request
Total Project
Design
$0
$0
Construction/Procurement
$900,000
$900,000
Total
$900,000
$900,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Deny grant and keep status quo with current police boat.
Cost Implications: Cost of maintenance/repair fees of current boat. Currently, in 2019, parts and
labor has cost $56,000. The estimated 25 percent grant match and other Port funds of $240,000
would be avoided.
Pros:
(1) No funding would need to be obtained for a new police boat under the grant.
Cons:
(1) Loss of a grant which would fund 75% of the award for the cost of a new boat.
(2) Potential reliability issues with the current police boat.
(3) No assurance a grant will be offered or available in the future.
(4) Delay of having a reliable boat to meet the needs of the Port of Seattle if the current
boat was to have serious mechanical failure.
(5) Inability to meet USCG regulatory requirements for on-water security during cruise
vessel operations if the current police boat becomes inoperable.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. 6c Page 4 of 6
Meeting Date: October 8, 2019
Template revised June 27, 2019 (Diversity in Contracting).
Alternative 2 – Deny grant, maintain status quo, and purchase new boat in the future through
capital projects.
Cost Implications: An estimated $900,000 minimum for a new police boat.
Pros:
(1) The $240,000 in grant match and other Port funds would not be needed immediately.
Cons:
(1) Loss of a grant which would fund 75% of the cost of a new boat.
(2) Port of Seattle is responsible for the entire cost of a new boat when needed.
(3) Project preparation time and build time would take almost a year before a new boat
was ready. This could be problematic if the current boat was to become non-deployable
due to a major mechanical issue.
This is not the recommended alternative.
Alternative 3 – Accept grant, obtain new police boat.
Cost Implications: $900,000 with $659,843 being reimbursed by the FEMA Port Security Grant.
Pros:
(1) Assists in maintaining USCG mandate to have a police boat present during cruise
operations.
(2) With a new boat, decrease in yearly maintenance costs.
(3) Improvement on reliability during cruise ship season, special events (SeaFair), protests,
and safety and security incidents.
(4) Becomes primary vessel to the aging 13-year-old vessel.
(5) $659,843 covered through FEMA Port Security Grant.
(6) Supports Century Agenda 2: Advancing this region as a leading tourism destination and
business gateway.
Cons:
(1) Requires 25 percent match by the Port of Seattle.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
The following budget and authorization summary is for the procurement of one (1) Port of Seattle
police boat.
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$900,000
$0
$900,000
AUTHORIZATION
Previous authorizations
0
0
0
COMMISSION AGENDA – Action Item No. 6c Page 5 of 6
Meeting Date: October 8, 2019
Template revised June 27, 2019 (Diversity in Contracting).
Current request for authorization
$900,000
0
$900,000
Total authorizations, including this request
$900,000
0
$900,000
Remaining amount to be authorized
$900,000
$0
$900,000
Annual Budget Status and Source of Funds
The 2019 budget includes $240,157 in General Funds to support the required 25 percent match
for the FEMA PSGP grant award ($219,948) plus additional costs required for the successful
completion of the procurement that are not eligible for grant reimbursement or as match
($20,209).
Grant
Project
Total
Cost
Grant
Funding
Port Match
(25%)
Other Port/Grant
Ineligible Costs
FEMA
PSGP
Police Boat
Procurement
$900,000
$659,843
$219,948
$20,209
Financial Analysis and Summary
Project cost for analysis
$900,000
Business Unit (BU)
Police
Effect on business performance
(NOI after depreciation)
n/a
IRR/NPV (if relevant)
n/a
CPE Impact
n/a
Future Revenues and Expenses (Total cost of ownership)
The procurement of a new Port of Seattle Police boat will have no direct impact on Port revenue.
The replacement of an existing 13-year-old vessel with a new boat will likely result in lower
maintenance costs, which has cost the Port $56,000 so far in 2019. Acceptance of the FEMA grant
will offset the additional Port costs that would be required if the Port were to procure a new boat
without the awarded grant.
ADDITIONAL BACKGROUND
The maritime economy continues to grow for the Port of Seattle, increasing the workload for the
Port of Seattle Police. In addition to cruise ship details, the Port of Seattle Police provide
presences for special events such as SeaFair, responding to waterside protests, assisting with the
removal of derelict vessels posing a safety and environmental concern, and assisting in locating
containers in the waterways to ensure commerce can continue to move. A new police boat will
help prevent such situations experienced in the past:
COMMISSION AGENDA – Action Item No. 6c Page 6 of 6
Meeting Date: October 8, 2019
Template revised June 27, 2019 (Diversity in Contracting).
• Reduced SeaFair coverage – 2019 SeaFair the Port of Seattle Police had a major
mechanical failure requiring the vessel to be removed from the water immediately. There
were no vessels, to include from neighboring jurisdictions to assist in coverage.
• Cruise ship coverage – The 2019 mechanical failure caused two cruise ship weekends to
rely on USCG to provide visible security presence.
• Protests – During the Polar Pioneer protests, the Port of Seattle Police had to call in a
favor to a northern jurisdiction for assistance with the kayak protest. Had the Port of
Seattle Police had a second vessel, personnel from within the department could have
been called upon to assist during this large waterside protest.
The reason to do this now is the Port of Seattle applied for and was awarded a FEMA Port Security
Grant which will provide 75 percent of the authorized grant award for the procurement of a new
boat. Should the award not be accepted, it may reduce the potential for future awards through
the Port Security Grant Program. There is a risk the FEMA Port Security Grant Program may come
to an end, reducing future opportunities for the Port to take advantage of federal funding for
maritime security related expenses. For example, the USCG ranks the cruise industry as one of
the top three security concerns to the Puget Sound. After project completion of the new police
boat, a decision will be made on what to do with the current police boat.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None