PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
5d
Date of Meeting
February 10, 2009
DATE: January 23, 2009
TO: Tay Yoshitani, Chief Executive Officer
FROM: Ralph Graves, Managing Director, Capital Development Division
Charlie Sheldon, Managing Director, Seaport Division
SUBJECT: Easements with Holland America Line and Princess Cruise Lines for shore power
at the Terminal 91 cruise facility and cost reimbursement not to exceed
$710,000.00.
ACTION REQUESTED:
Request for Port Commission approval for CEO to execute easements with Holland America
Line and Princess Cruise Lines for the installation and maintenance of certain equipment
necessary to provide shore power at the Terminal 91 cruise facility and the reimbursement of the
costs, not to exceed $710,000.00, for removing, retrofitting and reinstalling that equipment from
Terminal 30(T30) to the Terminal 91(T91).
SYNOPSIS
Approval of this request allows execution of easements and associated reimbursement to the
cruise lines for the work performed by their electrical service contractor Cochran Inc. for
removing, retrofitting, and relocating the shore power equipment to T91. The cost for such work
is part of the Commission approved project budget under CIP 800085. The total cost outlined in
the estimate from Cochran Inc. is within the approved project budget line item for this
reimbursement. Shore power for cruise ships at T91 represents a major environmental benefit of
reducing air emissions by allowing cruise ships to connect to the Seattle electrical grid while in
Port instead of operating their diesel engines.
BACKGROUND
Holland America Line (HAL) and Princess Cruise Lines (PCL) are recognized for their
leadership role in the advancement of environmental initiatives through the investment of vessel
retrofitting, landside infrastructure and certain equipment for the provision of shore power at the
Terminal 30 cruise facility. This equipment allowed the HAL and PCL cruise ships to connect to
an on-dock, high voltage electrical power feeder switch rather than operating their diesel-
powered engines to provide electricity while the cruise ships are at berth. This system design
and equipment makes up the landside portion of the cruise vessel shore power connection and is
proprietary in nature and owned by HAL and PCL.
Through the end of our 2008 cruise season there were still only three cruise vessel berths in the
entire world with shore power connections—of which two of the berths were here in Seattle.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
January 23, 2009
Page 2
Under the project-wide authorization for the T30/91 program, a budget line item has been
included to reimburse both cruise lines for the actual cost they will incur to relocate and retrofit
their shore power equipment from the T30 cruise facility to T91. Although the project-wide
authorization for the T30/91 project was previously granted, this approval is being presented to
the Commission under the new protocol established by Resolution 3605. The Cruise lines have a
contract with Cochran Inc., an electrical contractor headquartered in Seattle, which has designed,
installed and maintained this proprietary equipment which the cruise lines own.
To permit the placement of this proprietary equipment at the T91 cruise facility, the parties
intend to execute an easement memorializing the cruise lines rights and responsibilities. The
easement will also address the payment by the Port of certain costs associated with the removal,
retrofit and relocation of the equipment at T30 to T91. In November 2008 a final cost estimate
was presented by Cochran Inc. to perform this work. Following the removal and storage of the
cruise lines equipment which was done by Cochran at the end of the 2008 cruise season, Cochran
is now scheduled to reinstall the systems to serve each of the cruise vessel berths at the new
cruise facility on Pier 91 prior to opening the facility in April 2009. Once installed, the easement
will provide that all ongoing costs to maintain, operate, repair or replace the cruise vessel shore
power connection systems will be borne by the cruise lines who own the equipment.
