Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8e
ACTION ITEM
Date of Meeting
June 9, 2026
DATE : April 27, 2026
TO: Stephen P. Metruck, Executive Director
FROM: Krista Sadler, Director ICT Technology Delivery
SUBJECT: Lease Revenue Management System Replacement (CIP #C801384)
Amount of this project request:
$840,000
Ten-year contract authorization:
$3,560,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to 1) proceed with the Lease
Revenue Management System (LRMS) Replacement project; 2) execute contract(s) for software,
vendor services and up to ten years of support and license fees; and 3) use Port staff for
implementation. The amount requested for the capital project is $840,000 and ten-year contract
authorization is $3,560,000.
EXECUTIVE SUMMARY
This project will competitively procure and implement a Lease Revenue Management System to
replace the current Amadeus PROPworks software. The Port of Seattle uses PROPworks to
support property and revenue operations across its Aviation and Maritime Divisions. This
software is used to manage roughly 1200 leases, licenses, and permits. The system acts as the
foundation for essential business activities, such as managing lease agreements, collecting lease
revenues, recovering utility expenses, and tracking compliance with surety and insurance
requirements as well as Governmental Account Standards Board (GASB) regulations. Amadeus
has announced the upcoming release of PROPworks Version 10, which introduces completely
new, cloud-based architecture and a new pricing model. While the vendor has stated that the
existing core application will continue to be supported, several critical modules are being
removed or offloaded to third-party platforms, including: GASB Statement No. 87 Financial
Reporting, Insurance and Surety Compliance, Utility Meter and Billing Management, and Space
Management. A new LRMS enables the Port to modernize an aging software solution, improve
business process workflows, support evolving business needs, and improve tenant experience.
Information & Communication Technology (ICT), Aviation Lease Management, Maritime Lease
Management, Accounting and Financial Reporting (AFR) resources will be utilized along with
vendor services to complete this project estimated at $840,000. The ten-year contract cost is
COMMISSION AGENDA – Action Item No. 8e Page 2 of 5
Meeting Date: June 9, 2026
Template revised June 27, 2019 (Diversity in Contracting).
estimated at $3,560,000. This amount includes both the estimated implementation costs and
recurring costs as well as contingency for future flexibility. Recurring software license and
support costs will be budgeted within the ICT Department operating budget.
JUSTIFICATION
This LRMS replacement project will provide a modern, enterprise-grade software solution with
full compliance, integration, and scalability for managing the Port’s leases, licenses and permits.
Specific benefits include:
• Enables the Port to efficiently manage stewardship, lease administration, and business
operations across Aviation, Maritime, and AFR.
• Improves security and compliance exposure of remaining with a legacy system.
• Designed to accommodate future growth and align with the Port’s sustainability goals.
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.
DETAILS
Scope of Work
(1) Procure enterprise-grade lease and space management system capable of supporting
both Aviation and Maritime, replacing PROPworks.
(2) System interfaces.
(3) Data migration.
(4) Decommissioning of PROPworks.
Schedule
Commission authorization
2026 Quarter 2
Procurement completed
2027 Quarter 1
In-use date
2028 Quarter 3
Project Cost Breakdown
This Request
Total Project
Vendor services
$560,000
$560,000
Port labor
$280,000
$280,000
Total
$840,000
$840,000
COMMISSION AGENDA – Action Item No. 8e Page 3 of 5
Meeting Date: June 9, 2026
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Upgrade to PROPworks new platform (v10).
Cost Implications: $1,000,000
Pros:
(1) Moves to a modern, cloud-hosted environment, improving system availability, disaster
recovery, and reducing on-premises infrastructure needs.
(2) Accelerates implementation compared to sourcing a new solution.
(3) Retains some continuity in core concepts and terminology, which may reduce training
time compared to adopting a new solution.
Cons:
(1) PROPworks v10 removes critical functionality, including GASB 87 compliance, utility
billing, space management, and insurance/surety tracking, which are essential for Port
operations, requiring the need to spend time on development and ongoing
maintenance of manual processes in lieu of the current system, leading to higher labor
costs, data integrity issues, and compliance risk.
(2) Increases reliance on multiple third-party platforms, introduces integration complexity,
adds licensing and implementation costs, and increases vendor dependency.
(3) Lack of clarity on long-term support and functionality introduces sustainability risk.
(4) Delays modernization and tenant experience improvements, missing a strategic
opportunity.
This is not the recommended alternative.
Alternative 2 – Build an internal custom solution.
Cost Implications: $2,000,000
Pros:
(1) Fully customizable to meet unique Aviation and Maritime Division requirements.
(2) Eliminates reliance on external vendor roadmaps and pricing models.
(3) Reduced licensing costs if internal resources are effectively utilized.
Cons:
(1) Significant cost and resource commitment for design and development.
(2) Internal development will take considerably longer than proven vendor solutions to
implement, delaying modernization and risking loss of support for PROPworks v9.
(3) Requires significant ongoing internal support for troubleshooting, updates, and feature
enhancements to meet evolving business and regulatory requirements.
(4) Increases workloads on operations teams to create documentation, governance
processes, training and user support, and maintenance resources.
COMMISSION AGENDA – Action Item No. 8e Page 4 of 5
Meeting Date: June 9, 2026
Template revised June 27, 2019 (Diversity in Contracting).
(5) Requires expertise to maintain GASB 87 compliance and security standards.
(6) Lacks industry-driven enhancements, missing best practices and continuous
improvements gained from vendor solutions across multiple airports and seaports.
This is not the recommended alternative.
Alternative 3 – Procure and implement a modern, enterprise-grade lease management solution
with full compliance, integration and scalability.
Cost Implications: $840,000
Pros:
(1) Consolidates multiple functions currently spread across disparate systems, improving
data integrity and reducing integration complexity.
(2) Incorporates the latest technologies and security standards to protect data and ensure
operational resilience.
(3) Fully supports GASB 87 reporting requirements.
(4) Ensures comprehensive support to manage contractual obligations such as Consumer
Price Index (CPI) adjustments, Fair Market Rent (FMR) calculations, and Minimum
Annual Guarantee (MAG) billing, as well as obligations when the Port is the lessee, long-
term permit tracking, and easements.
(5) Automates workflows, reduces manual processes, and maintains accuracy in billing and
reporting with the goal of maximum revenue potential of our real estate assets.
(6) Offers potential for advanced analytics and dashboards for improved decision-making.
Cons:
(1) Requires significant investment for procurement, implementation, and licensing
(2) Requires substantial effort for staff training and adaptation to new workflows.
(3) Full deployment and data migration may take several months, impacting short-term
operations.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Project Cost Estimate
Capital
Expense
Total
COST ESTIMATE
Original estimate
$840,000
$3,560,000
$4,400,000
AUTHORIZATION
Previous authorizations
$0
$0
$0
Current request for authorization
$840,000
$3,560,000
$4,400,000
Total authorizations, including this request
$840,000
$3,560,000
$4,400,000
Remaining amount to be authorized
$0
$0
$0
COMMISSION AGENDA – Action Item No. 8e Page 5 of 5
Meeting Date: June 9, 2026
Template revised June 27, 2019 (Diversity in Contracting).
Annual Budget Status and Source of Funds
This project, CIP C801384 – Lease Revenue Management System Replacement, is included in the
2026-2030 Capital Budget and Plan of Finance with an allocated budget of $840,000. The project
will be funded by a combination of the Airport Development Fund (81.3%) and the General Fund
(18.7%).
The authorization also includes a ten-year contract with the selected LRMS vendor not to exceed
$3,560,000 that will be funded through the project capital funding and the ICT annual Operating
Budget.
Financial Analysis and Summary
Project cost for analysis
$4,400,000
Business Unit (BU)
Administrative (81.3% allocates to Airport)
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)
N/A
CPE Impact
Annual CPE less than $0.01
Future Revenues and Expenses (Total cost of ownership)
Average annual software license subscription and support fees estimated at $260,000 will be
budgeted within the ICT operating budget. The total contract amount includes contingency for
future flexibility.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None
