Template revised January 10, 2019.

COMMISSION

AGENDA MEMORANDUM

Item No. 8n

ACTION ITEM Date of Meeting February 11, 2025

DATE: January 13

, 2024

TO: Stephen P. Metruck, Executive Director

FROM: Delmas Whittaker, MM Director

Shannon Zink, MM Senior Manager, Fleet and Facilities

Levi Clark, MM Fleet and Transportation Manager

Shayla Fortin, MM Fleet Asset Project Manager

SUBJECT: 2025 Maritime and Corporate Fleet Purchases

The 2025 Maritime and Corporate Division Fleet Replacement Program is a critical initiative at

the Port of Seattle aimed at enhancing operational efficiency and addressing environmental

priorities. Aligned with the Maritime Climate and Air Action Plan (MCAAP), this program includes

the acquisition of approximately forty (42) fleet assets to replace outdated vehicles across the

Maritime Division (C801389) and Corporate Division (C802008). This replacement effort

addresses both operational and technological needs and furthers the Port’s sustainability goals

under the Century Agenda to become the “Greenest, Most Energy Efficient Port in North

America.” With an estimated project cost of $5,655,000, this program emphasizes safety,

functionality, fuel conservation, carbon reduction and air quality improvements.

Amount of this request: $5,655,000

2025 Maritime Fleet Replacements

2025 Corporate Fleet Replacements

Total estimated project cost:

$4,675,000

$980,000

$5,655,000

ACTION REQUESTED

The Marine Maintenance Fleet Team requests Commission authorization for the Executive

Director to initiate contracts for acquiring approximately forty-two (42) fleet vehicles or

equipment. These acquisitions will not only meet the immediate operational needs of the

Maritime and Corporate departments but will also implement advanced safety and

environmental standards. Moreover, this acquisition supports the electrification strategy

outlined in the MCAAP, the Sustainable Fleet Plan, and the Century Agenda, which collectively

COMMISSION AGENDA – Action Item No. 8n Page 2 of 6

Meeting Date: February 11, 2025

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

prioritize the transition to electric vehicles (EVs) and other alternative fuel sources as part of a

comprehensive approach to carbon reduction and air quality improvement.

EXECUTIVE SUMMARY

The 2025 Maritime and Corporate Division Fleet Replacement Program involves a systematic

fleet update, ensuring that the Port’s assets meet evolving environmental regulations and

technological advancements. All fleet replacements were planned in the 2025 Draft Plan of

Finance, aligning with EX-17, Fleet Management Policy, which emphasizes vehicle lifecycle

maximization based on usage, maintenance needs, and environmental impacts. This program

ensures the use of strategic sourcing and fleet management best practices, which streamline the

acquisition process to fulfill operational needs efficiently.

Guided by the Maritime Climate and Air Action Plan (MCAAP), this initiative targets goals to

reduce greenhouse gas (GHG) emissions, with a 50% reduction by 2030 and an eventual goal of

net-zero emissions by 2050. The MCAAP’s Fleet Vehicles and Equipment Strategy promotes a

shift from fossil fuels to renewable energy sources, with a significant emphasis on electrification.

Of the 42 new assets, forty percent (17 assets) are anticipated to be Battery Electric vehicles,

enhancing both operational capacity and environmental responsibility. The remaining assets will

be procured to use Hybrid engine technology for light-duty to mid-sized equipment (where

electrification is not yet available) or utilize Renewable Diesel (R99) if they are Class 6-8 Heavy

Duty Assets or Equipment.

Alignment with the Maritime Climate and Air Action Plan

The MCAAP is the Port of Seattle’s comprehensive response to climate change, highlighting

specific strategies to address air pollution from maritime sources. It provides a structured

pathway to achieve the Northwest Ports Clean Air Strategy (2020) and the Port’s Century Agenda

targets, including the ambitious goal of net-zero emissions from Port operations by 2040. By

prioritizing the reduction of Scope 1 emissions from Port-owned vehicles and equipment, the

MCAAP outlines clear actions, such as transitioning to 100% electric vehicles (EVs) by 2040, and

supporting renewable diesel use where electrification is not immediately feasible.

Specific to the 2025 Fleet Replacement Program:

 GHG Emission Reduction: Emission reductions from the program directly contribute to

the Century Agenda target to reduce emissions by 50% by 2030. This program is part of a

long-term plan to lower emissions associated with Port operations through alternative

fuel vehicles, efficient fleet management, and the deployment of renewable energy

sources.

 Community Health and Equity: Recognizing that emissions from the Port

disproportionately affect nearby communities, especially in the Duwamish Valley, the

MCAAP integrates equity considerations into its strategies. Reducing diesel particulate

matter (DPM) and other pollutants will improve air quality, benefiting public health in

these areas and aligning with the Port’s commitment to environmental justice.

COMMISSION AGENDA – Action Item No. 8n Page 3 of 6

Meeting Date: February 11, 2025

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

 Energy Efficiency and Renewable Energy Use: The MCAAP’s strategy includes deploying

energy-efficient technologies across fleet assets, and this program prioritizes electrified

and alternative fuel vehicles to reduce fossil fuel dependency. Additionally, the

installation of solar charging units for EVs addresses energy access in locations without

immediate infrastructure, further promoting renewable energy use within the fleet.

JUSTIFICATION

Established in 2008, Fleet Management Policy EX-17 governs fleet procurement, prioritizing

safety, functionality, fuel conservation, and air quality improvements. The 2025 Fleet

Replacement Program follows these guidelines, ensuring that new fleet assets replace aging

vehicles that are less fuel-efficient and may no longer meet the operational and safety needs of

Port staff. The planned acquisitions are consistent with EX-17’s objective to fund capital fleet

purchases through the Port’s budget process, thereby reducing ongoing maintenance costs and

minimizing environmental impact.

Diversity in Contracting

During the procurement process, firms will be notified that may be able to provide the assets,

but due to limited opportunities and available firms, no WMBE goal was established.

Schedule

Commission Authorization 2025 Quarter 1

Procurement Process 2025 Q2 – 2026 Q2

Equipment Received 2025 Q3 – 2026 Q3

Equipment In-Use Date Varies by Class of Vehicle

or by Manufacturer,

2025 Q3 – 2026 Q4

ALTERNATIVES AND IMPLICATIONS CONSIDERED

Alternative 1 – No Action Taken to Procure: This would incur no immediate costs but would

result in higher maintenance expenses for aging vehicles. The Port would risk operational delays,

particularly as older vehicles fall behind current safety and technological standards.

Pros:

(1) No Immediate Capital Expenditure: The Port would avoid the upfront costs associated

with purchasing new fleet assets, freeing up budget in the short term.

(2) Avoidance of Procurement Process: Not acquiring new vehicles would eliminate the

need for time and resources spent on bidding, procurement, and contract management.

COMMISSION AGENDA – Action Item No. 8n Page 4 of 6

Meeting Date: February 11, 2025

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

Cons:

(1) Increased Maintenance Costs: Aging vehicles typically require more frequent repairs,

leading to escalating maintenance expenses that may surpass the cost savings from

delaying procurement.

(2) Higher Downtime and Operational Delays: Older vehicles are more prone to

breakdowns and operational inefficiencies, which could result in unexpected downtime,

delayed responses, and reduced service reliability.

(3) Continued Use of Non-Renewable Fuel: Delaying the replacement of the obsolete

assets would require those assets to continue to consume conventional liquid fuels such

as gasoline and diesel. We would not have any renewable fuel offsets and Greenhouse

Gas reductions because new electric vehicles, or alternatively fueled assets, would not

be procured.

This is not the recommended alternative.

Alternative 2 – Rent Necessary Equipment as Needed: This approach would reduce maintenance

and storage costs; however, rental delays and unpredictable costs would hinder timely response

to operational demands, ultimately increasing total expenditures.

Pros:

(1) Reduced Maintenance Costs: Renting equipment eliminates the need for ongoing

maintenance and repair, as these responsibilities typically fall on the rental provider,

reducing maintenance-related expenses.

(2) Flexibility to Adjust for Specific Needs: Renting allows the Port to select equipment that

precisely matches the requirements of specific projects, providing flexibility to adjust to

varying operational demands without committing to permanent assets.

Cons:

(1) Rental Availability Delays: High-demand or specialized equipment may not always be

readily available, potentially leading to significant delays in obtaining the necessary

equipment and impacting operational timelines.

(2) Higher Long-Term Costs: Over extended periods, rental costs can accumulate and

ultimately exceed the cost of owning equipment, resulting in higher total expenditures

without asset ownership benefits.

This is not the recommended alternative.

Alternative 3 – Procure the Requested Fleet Assets (Recommended Alternative): This alternative

enables the Port to achieve sustainable fleet management, with anticipated savings and

COMMISSION AGENDA – Action Item No. 8n Page 5 of 6

Meeting Date: February 11, 2025

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

enhanced capacity for rapid response. The 42 new vehicles, including electric and renewable fuel

models, align with the MCAAP and reduce long-term environmental and financial costs.

Cost Implications:

Pros:

(1) Alignment with Environmental Goals: Procuring electric and renewable fuel vehicles

aligns with the Maritime Climate and Air Action Plan (MCAAP) and the Century Agenda,

supporting the Port’s commitment to sustainability and emissions reduction targets.

(2) Increased Reliability and Reduced Downtime: New fleet assets are less prone to

breakdowns and repairs, providing more consistent performance and lowering the risk

of operational disruptions.

Cons:

(1) Significant Upfront Capital Expenditure: Purchasing the fleet assets requires a

substantial initial investment, which can impact the Port’s short-term budget flexibility.

(2) Risk of Technological Obsolescence: As technology in fleet management continues to

evolve, there is a risk that some purchased assets may become outdated before the end

of their useful life, which could affect their resale value or necessitate earlier

replacement.

This is the recommended alternative.

FINANCIAL IMPLICATIONS

The total estimated cost for the 2025 Fleet Replacement Program is $5,655,000, covering both

Maritime and Corporate Division needs. Of this, $4,675,000 will fund the Maritime Division

(C801389), while $980,000 is allocated for the Corporate Division (C802008), with funding

sourced from the General Fund and Airport Development Fund.

Cost Estimate

/Authorization Summary Capital

Expense

Total

COST ESTIMATE

Original estimate $5,655,000

$5,655,000

Previous changes – net 0

Current change 0

Revised estimate 0

AUTHORIZATION

Previous authorizations 0

Current request for authorization $5,655,000

$5,655,000

Total authorizations, including this request $5,655,000

$5,655,000

Remaining amount to be authorized $0

COMMISSION AGENDA – Action Item No. 8n Page 6 of 6

Meeting Date: February 11, 2025

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

Annual Budget Status and Source of Funds

The 2025 Capital Plan includes:

C801389 MD Fleet 2025 with a total cost of $4,675,000. These purchases will be funded by the

General Fund.

C802008 Engineering/PCS Fleet 2025, with a total cost of $980,000 to be funded by the Airport

Development Fund (81.3%) and the General Fund (18.7%). Funding for this CIP was included

under C801415 Engineering/PCS Fleet 2024+ in the 2025 Capital Plan.

ATTACHMENTS TO THIS REQUEST

(1) Presentation slides