Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6h
ACTION ITEM
Date of Meeting
September 22, 2020
DATE: September 15, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Kenneth Lyles, Director Maritime Operations and Security
Krista Sadler, Director Technology Delivery
SUBJECT: Vessel Moorage System (CIP #C800729)
Amount of this request:
$410,000
Total estimated project cost:
$960,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to proceed with the Vessel
Moorage System project with an additional authorization of $410,000 for a total project cost
not to exceed $960,000.
EXECUTIVE SUMMARY
A project to competitively procure and implement a vessel moorage system to support marina
and terminal operations was approved in January 2016 with a total project cost not-to-exceed
$550,000. Due to a lack of systems on the market that meet Port of Seattle requirements, two
lengthy procurement processes were completed before a vendor was selected. This contract
was canceled during implementation when information security concerns could not be
resolved. After further research into possible solutions yielded no alternatives, a decision was
made in 2020 to develop the system internally for a total development cost of $760,000. This
request is for additional authorization of $410,000 to fully fund the development of the new
system. Following is a table describing the financial requirement for the new authorization.
Original Authorization
$550,000
Less: Amount Expensed with Failed Solution
-$191,684
Authorized Funds Remaining for New
Solution
$358,316
Project Cost for Developed Solution
$768,316
Additional Authorization for New Solution
$410,000
Total Authorization
$960,000
The existing system, used by Harbor Services, was deployed in 2009. It no longer meets Port
requirements for modern Marina operations, has compatibility issues with newer technology,
COMMISSION AGENDA – Action Item No. 6h Page 2 of 5
Meeting Date: September 22, 2020
Template revised June 27, 2019 (Diversity in Contracting).
provides little capability for customer self-service, and doesn’t support the management of
non-leased terminal operations. When this project is complete, the Maritime organization will
have a system to manage slip, berth, and storage assignments, calculate billing, process credit
card payments securely, and more efficiently communicate with customers; improving
operational excellence. Maritime customers will have more capability to self-manage
reservations, payments, and access account information.
Information and Communication Technology (ICT), Maritime, and Accounting and Financial
Reporting (AFR) resources will complete the project. Funds of $550,000 are included in the
2020-2024 capital budget and plan of finance. The additional $210,000 required for the total
system cost will be included in the 2021-2025 capital budget and plan of finance. Maintenance
will be budgeted in the ICT Operating Budget.
JUSTIFICATION
Because the aging system does not meet current business requirements for marina operations
and was not designed to support terminal operations, many manual processes are in place
which result in reducing the efficiency of operations. This includes waitlist management,
moorage mapping, and all management of operations and rates for the non-leased terminals. A
system that meets requirements, is easily updated as industry offerings and customer service
needs evolve and satisfies Port technology standards and security requirements will best
support the Maritime Divisions goals.
Diversity in Contracting
Should contract resources be required to augment internal development staff, ICT will utilize an
existing Indefinite Delivery Indefinite Quantity (IDIQ) contract with a minority-owned business
enterprise.
DETAILS
Scope of Work
ICT, Maritime, and AFR will deliver a system that supports marina and terminal operations and
includes:
(1) Customer Self-Service Features.
(2) Payment Card Industry (PCI) Compliance.
(3) Interface to Port systems for billing and access control.
(4) Utilization of current Port systems for Customer Relationship Management (CRM),
Financials, and Inspections.
Schedule
Commission Authorization
September 2020
Initial Implementation
4
th
Quarter 2021
Project Complete
2
nd
Quarter 2022
COMMISSION AGENDA – Action Item No. 6h Page 3 of 5
Meeting Date: September 22, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Cost Breakdown
This Request
Total Project
Design/Development/Test
$410,000
$960,000
Total
$410,000
$960,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Cancel Project and Continue to Use Existing System
Cost Implications: $0 – Capital
Pros:
(1) Capital funds could be saved or allocated to another effort.
(2) The current system is familiar to marina staff.
Cons:
(1) Due to the age of the existing system, technical incompatibility with current
technology will hamper needed updates for security and consistency.
(2) Customers today expect modern self-service capabilities when working with
businesses. With no self-service capabilities, customers may choose other options and
staff costs for unnecessary customer service touchpoints, remain high.
(3) New requirements over time are implemented with manual processes, increasing
costs and opportunities for errors.
This is not the recommended alternative.
Alternative 2 – Continue to look for a solution available for the remaining authorized funds
Cost Implications: $358,000
Pros:
(1) No additional authorization or funding is required above what has already been
authorized.
Cons:
(1) Two procurements and many Request For Information (RFI) have been completed
over the past several years looking for a system that meets most requirements. While
there are a few that meet some needs, there have been none that will support the
management of several marinas and non-leased terminal operations, interface with
our financial system, and meet information security and Payment Card Industry (PCI)
mandatory requirements.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. 6h Page 4 of 5
Meeting Date: September 22, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Alternative 3 – Authorize additional funds to complete Port development
Cost Implications: $410,000
Pros:
(1) Maritime organization will have a system to support operations, meet security
expectations, and enhance customer communication.
(2) Self-service capability will be built into the system to delight customers and maximize
efficiency.
(3) Recurring maintenance costs for Port developed software are significantly lower than
most off-the-shelf alternatives. Future enhancements to keep the software current
can be completed with smaller capital efforts.
Cons:
(1) Additional capital will not be available for other efforts or savings.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Approximately $200,000 was expensed in 2019 when the previously selected contract for
software was canceled due to information security concerns.
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$550,000
$0
$550,000
Current change
$210,000
0
$210,000
Revised estimate
$760,000
0
$760,000
AUTHORIZATION
Previous authorizations
$550,000
0
$550,000
Current request for authorization
$410,000
0
$410,000
Total authorizations, including this request
$960,000
0
$960,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project, C800729, was included in the 2020-2024 capital budget and plan of finance at an
amount of $550,000. An additional $210,000 will be added to the 2021-2025 capital budget and
plan of finance for a total amount of $760,000. Recurring maintenance will be budgeted in the
ICT operating budget.
Financial Analysis and Summary
Project cost for analysis
$760,000
Business Unit (BU)
Maritime
COMMISSION AGENDA – Action Item No. 6h Page 5 of 5
Meeting Date: September 22, 2020
Template revised June 27, 2019 (Diversity in Contracting).
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)
Port labor for maintenance will be budgeted in the ICT operating budget. Future enhancements
after completion to keep the software current will be funded through small capital efforts.
ATTACHMENTS TO THIS MEMO
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
January 5, 2016 – The Commission authorized the Chief Executive Officer to (1) proceed
with the Vessel Moorage System project; (2) authorize the procurement of required
hardware, software, and vendor services; (3) authorize the use of Port staff for
implementation; and (4) authorize the procurement of vendors services for
maintenance, for a total project cost not to exceed $550,000 and maintenance costs
estimated at $200,000 over five years.