Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
10b
ACTION ITEM
Date of Meeting
March 12, 2024
DATE: February 2, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Delmas Whittaker, Director, Marine Maintenance
Shannon Zink, Sr. Manager, Fleet and Facilities, Marine Maintenance
Levi Clark, Fleet and Transportation Manager, Marine Maintenance
Shayla Fortin, Fleet Asset Project Manager
SUBJECT: 2024 Marine Maintenance Fleet Purchases
Amount of this request:
$5,955,000
Total requested project cost:
$5,955,000
The 2024 Maritime and Corporate Division Fleet Replacement Program(s) includes the
acquisition of approximately sixty-three (63) fleet assets to replace sixty-three (63) aging assets
in support of the Maritime Division (C801388 MD Fleet 2024) and Corporate Division’s (C801415
Engineering/PCS Fleet 2024) operational and technological needs at multiple Port of Seattle
properties.
ACTION REQUESTED
The Marine Maintenance Fleet Team is requesting Commission authorization for the Executive
Director to execute contract(s) for acquisition of approximately sixty-three (63) fleet vehicles or
equipment to support operational needs, changing technological standards, improved safety
systems, environmental standards and the electrification strategy set forth in the Maritime
Climate Air and Action Plan, Sustainable Fleet Plan, and the Century Agenda.
EXECUTIVE SUMMARY
The 2024 Maritime and Corporate Division Fleet Replacement Program(s), included the
acquisition of sixty-three (63) fleet assets to replace sixty-three (63) aging assets in support of
Maritime Division (C801388) and Corporate Division’s (C801415) operational needs. All assets
were planned for in the 2024 Fleet Replacement Plan and included in the 2024 Draft Plan of
Finance. The Marine Maintenance Fleet Team is requesting Commission authorization for the
Executive Director to execute contract (s) for the acquisition of approximately sixty-three (63)
fleet assets, streamlining the acquisition process, while utilizing strategic sourcing and fleet
management “best practices.”
COMMISSION AGENDA – Action Item No. 10b Page 2 of 5
Meeting Date: March 12, 2024
Template revised June 27, 2019 (Diversity in Contracting).
• The Maritime Climate and Air Action Plan detailed the proactive electrification goals of
the Maritime Division, which seeks to reduce Scope 1 GHG emissions caused by Port
owned vehicles or Port owned sources by implementing emission reduction strategies,
i.e. transitioning to 100% electric vehicles by 2040 by prioritizing fleet conversions to
electrified vehicles when feasible due to operational necessity. This request directly aligns
with the MCAAP goals of the gradual transition of electrified vehicles into the Maritime
and Corporate Division fleets; 27 of the requested assets are anticipated to be alternative
fuel source vehicles, along with the purchase of remote solar charging units for accessible
EV charging in areas where electrical infrastructure is not available.
• This request directly supports the Century Agenda goals of the Port of Seattle becoming
the “Greenest, and Most Energy Efficient Port in North America”, by meeting all increased
energy needs through conservation and renewable resources, meeting the Puget Sound
region int’l trade and cargo needs through efficient, sustainable, environmentally
responsible transportation, reducing air pollutants and carbon emissions through
reduction in ICE vehicles and transitioning to alternative fuel source vehicles. Along with
fostering an environment of transparency and responsible stewardship, the Marine
Maintenance Fleet Team strives to provide the right tools at the right time to our
stakeholders, allowing them to work safely with equipment specifically tailored to
operational needs and environmental goals set forth by Port of Seattle initiatives.
JUSTIFICATION
In 2008, the Fleet Management policy, EX-17, was established to set guidelines for Fleet
Management activities at the Port of Seattle. “The policy applies to all Port departments,
employees, and others who procure, long term lease, dispose of, or operate Port Vehicles and
equipment. The use of Port Vehicles and Equipment shall be managed with priority given to
meeting functional needs of the department, Port employees, safety, cost effectiveness, fuel
conservation and air quality.”
The determination for these purchases was based on EX-17, Fleet Management Policy, 6.2.1.4.
“The Fleet Manager will determine Fleet Replacements based upon age, mileage/hours,
maintenance and repair costs, safety, environmental impacts and/or change in operational
requirements. Departments are encouraged to rotate assigned equipment from low usage to high
usage in order to maximize Fleet life cycle.”
Funding for the purchases was established in EX-17, 6.2.1 “Funding and authorization for Capital
Fleet acquisitions will be attained through the budget process in accordance with the annual
COMMISSION AGENDA – Action Item No. 10b Page 3 of 5
Meeting Date: March 12, 2024
Template revised June 27, 2019 (Diversity in Contracting).
budget guidelines. 6.2.1.1 All fleet purchases will be managed by the Fleet Managers using the
appropriate small capital CIP.”
Per EX-17, all fleet acquisitions will be handled in accordance with current Port policies,
municipality and State rules and regulations.
Diversity in Contracting
Diversity and Contracting was consulted about this request. Per Diversity and Contracting,
subcontracting for the products requested is not feasible. When in the process of acquisition,
applicable firms will be notified but due to the limited opportunities and firms, no WMBE goal
was established.
DETAILS
Per EX-17, all fleet acquisitions will be handled in accordance with current Port policies,
municipality and State rules and regulations.
Scope of Work
The Marine Maintenance Fleet Team, working in conjunction with the Central Purchasing Office,
and in accordance with CPO-5 guidelines, will coordinate the acquisition of all requested fleet
assets based on operational needs and performance criteria identified by the Marine
Maintenance Fleet team.
Total estimated costs for requested assets: $5,955,000.
Schedule
Commission Authorization
Acquisition(s)
Equipment Received
In-Use Date
Cost Breakdown
This Request
Total Project
C801388 MD Fleet 2024
$4,755,000
$4,755,000
C801415 Engineering/PCS Fleet 2024:
$1,200,000
$1,200,000
Total
$5,955,000
$5,955,000
COMMISSION AGENDA – Action Item No. 10b Page 4 of 5
Meeting Date: March 12, 2024
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – No Action Taken to Procure.
Cost Implications: $0.00
Pros:
(1) No acquisition cost is incurred.
(2) No preparation for service cost is incurred.
Cons:
(1) Increased maintenance cost of aging vehicles and equipment.
(2) The vehicles designated for replacement are at the end of their useful life and may not
align with current technological specifications, safety standards or staff operational
needs.
This is not the recommended alternative.
Alternative 2 – Rent necessary equipment as needed.
Cost Implications:
Pros:
(1) Ability to right size vehicles or equipment to specific needs or incurred jobs.
(2) No incurred maintenance or labor costs for rental equipment.
Cons:
(1) Inability to accurately predict rental equipment needs, causing potential delays in work
due to unavailability of vehicles or equipment and increased costs.
(2) Incurred costs with no ROI at the end of rental period.
This is not the recommended alternative.
Alternative 3 – Procure the requested fleet assets.
Cost Implications:
Pros:
(1) Ability to exchange older, less fuel-efficient vehicles with alternative fuel source or
renewable fuel vehicles that can accommodate the operational needs of staff, when
feasible.
(2) Ability to purchase vehicles and equipment with advanced technology, such as
increased safety and environmentally sustainable features that will enhance the
stakeholders’ experience, while protecting the environment and community.
Cons:
(1) Initial acquisition costs of fleet assets.
(2) Total cost of ownership of acquired fleet assets.
COMMISSION AGENDA – Action Item No. 10b Page 5 of 5
Meeting Date: March 12, 2024
Template revised June 27, 2019 (Diversity in Contracting).
(3) Lack of electrical infrastructure and electrical capacity will require alternative charging
methods to meet some deployment priorities.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$5,955,000
$0
5,955,000
Previous changes – net
0
0
0
Current change
0
0
0
Revised estimate
0
0
0
AUTHORIZATION
Previous authorizations
0
0
0
Current request for authorization
5,955,000
0
5,955,000
Total authorizations, including this request
5,955,000
0
5,955,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
The 2024 Capital Plan included C801388 MD Fleet 2024 with a total cost of $4,755,000.
Corporate fleet purchases under C801415 Engineering/PCS Fleet 2024 will be covered by
$1,200,000 budgeted under C801354 Engineering/PCS Fleet 2023.
Maritime fleet purchases will be funded by the General Fund.
Corporate fleet purchases will be funded by the Airport Development Fund (approx. 80%) and
General Fund (approx. 20%).
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides