Template revised January 10, 2019.
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 by-
product 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.
COMMISSION AGENDA – Action Item No. 8c Page 2 of 5
Meeting Date: April 26, 2022
Template revised June 27, 2019 (Diversity in Contracting).
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.
COMMISSION AGENDA – Action Item No. 8c Page 3 of 5
Meeting Date: April 26, 2022
Template revised June 27, 2019 (Diversity in Contracting).
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
In-use date
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.
COMMISSION AGENDA – Action Item No. 8c Page 4 of 5
Meeting Date: April 26, 2022
Template revised June 27, 2019 (Diversity in Contracting).
(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
COMMISSION AGENDA – Action Item No. 8c Page 5 of 5
Meeting Date: April 26, 2022
Template revised June 27, 2019 (Diversity in Contracting).
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)
NOI after depreciation will increase due to inclusion of
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