PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
7a
Date of Meeting
March 10, 2009
DATE: January 28, 2009
TO: Tay Yoshitani, Chief Executive Officer
FROM: Mike McLaughlin, Director, Cruise and Industrial Properties
Mark Longridge, Capital Project Manager
SUBJECT: Authorization of construction and approval to advertise dock
improvements and repairs needed for barge layberth locations at
Terminal 25, Pier 28 and Terminal 46
ACTION REQUESTED
Request for Port Commission authorization for the Chief Executive Officer to advertise
for construction by contract of improvements and repairs to the fendering and on dock
systems at Terminal 25, Pier 28 and Terminal 46 for an estimated amount of $250,000,
for a total new authorization of $300,000.
SYNOPSIS
This funding request is step two of Commission authorization process following the
initial authorization provided on October 14, 2008 which directed staff to proceed with
final scoping, design and permit applications for the described project.
This request falls under and is part of the “Industrial Moorage Initiative” which was
presented as a Policy and Staff Briefing in public session on June 3, 2008.
Port staff requests approval of construction funding for improvements at three of the
phase one sites identified in the Seaport Planning Barge Layberth study of July 2008.
These improvements will accommodate a portion of the displacement of moorage at
Terminal 91 (T91) that will result from the implementation of federal security
requirements related to the Transportation Worker Identification Credential (TWIC)
federal security program in February 2009 and activation of the Smith Cove Cruise
Terminal in April 2009.
The project sites are as follows (including length of berth area available for barge
moorage once improvements/repairs are completed):
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
January 28, 2009
Page 2
Terminal 25 SW (south end of west face) 400’
Terminal 46 NW (north end of west face) 500’
Pier 28 (south end T30 within the slip) 700’
These improvements include repair of existing fender systems at T46 NW (8 piles) and
P28 (8 piles); minor facility improvements at both these sites; and at T25 security
fencing, cleat relocations, and minor repairs to other portions of piers.
PROJECT SCOPE OF WORK AND SCHEDULE:
Project scope will include the replacement of damaged fender piles at T46 and P28,
identified in the fender system evaluation of June 2008. The scope will also include
other site infrastructure improvements at these locations and T25 to make barge
layberth possible for Port tenants. The other improvements beyond fender system
repairs, include repairs to chocks, brows, bullrails, cleats, bollards, security systems,
fencing, and gate improvements.
To be available prior to the 2009 cruise season, initial work at T25 will commence
immediately, including installation of security fence and relocation of bollards and
cleats at the bull rail.
All permits have been received for in-water work, and replacement of the damaged
fender piling at T46 and P28 will commence as soon as the permit window allowing
in water work opens in August 2009. Some minor work may be performed at these
sites to allow partial use of the berth area this season to meet layberth demand.
All construction for this project is expected to be completed by October 31, 2009.
STRATEGIC OBJECTIVES:
This work is aligned with the Industrial Moorage Initiative as it is intended to
preserve and expand berth facilities in the harbor to provide for a vibrant Seaport that
adequately serves the requirements of all essential sectors of the maritime
community.
Best management practices will be deployed in selection of materials, work practices
and ongoing total cost of ownership.
BUSINESS PLAN OBJECTIVES:
Completion of this work will return to use 1,600 lineal feet of barge layberth moorage in
our harbor. While this amount is below the peak barge usage of 2,300 LF identified in
the Seaport planning group’s study, it will accommodate the expected demand on 65% of
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
January 28, 2009
Page 3
the affected days in April and May when both the cruise terminal is in operation and the
fishing fleet are at T91, (based on historical usage).
Budget/Authorization Summary
Previous Authorizations
$50,000
Current request for authorization
$250,000
Total Authorizations, including this request
$300,000
Remaining budget to be authorized
$0
Project Cost Breakdown
Design and Permitting
$50,000
Construction
$250,000
Total
$300,000
Source of Funds
This project is included in the 2009 Operating Budget in the amount of $250,000. Due to
subsequent changes in the construction schedule, the 2009 portion of project costs are
expected to be $283,000. Actual 2009 costs in excess of the budgeted $250,000 will
create an unfavorable expense variance.
This project will be funded from the general fund.
Financial Analysis Summary
Renewal/Enhancement
Renewal and Replacement
N/A
The timing of in-water work is constrained by closure of the fish
window. The next in-water work period will open on 8/15/09 and
close on 2/15/10.
Construction costs may increase if necessary repairs are more
extensive than currently known
$300,000
Dock Operations
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
January 28, 2009
Page 4
The estimated total project costs will have the following effect on
NOI. Depreciation Expense will not be impacted by this project, as
this repair is an operating expense.
2008 2009 TOTAL
Incremental Expense ($17,000) ($283,000) ($300,000)
NOI ($17,000) ($283,000) ($300,000)
Depreciation - - -
NOI After Depreciation (17,000) (283,000) (300,000)
N/A
SUSTAINABILITY AND LIFE CYCLE COSTS
Since this project replaces only a small percentage of the existing timber fender piles
within the current system at each site alternative materials and systems were not
considered.
What plans have been made to reduce maintenance costs? If not, why?
This project renews an essential part of the protective system for the facilities. The
project will by definition reduce maintenance costs to the terminals by preventing
damage from barges and vessels impacting on the apron structure.
What is the design life span of this project?
Ten (10) years
What plans have been made to reduce chemical and pollutant source control (low
volatile organic compounds) in the construction of this project to improve air
quality? If not, why?
This project will remove creosote treated piles and replace them with ACZA treated
piles.
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS
Alternative 1: Do nothing. With the displacement of barge layberth space at T91 during
periods of overlap between the cruise and fishing industry seasons, the Port would not
have adequate barge layberth space for current and future tenants. For these reasons,
Alternative 1 is not recommended.
Alternative 2: Repair and improve some, but not all of the three proposed facilities. This
would not provide adequate berth capacity to fully meet current demand, nor would it
provide any capacity for new or foregone demand during peak seasonal periods. For
these reasons, Alternative 2 is not recommended.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
January 28, 2009
Page 5
Alternative 3: Repair and improve existing facilities at T25, P28 and T46 to
accommodate current barge layberth moorage requirements and obligations.
This is the recommended alternative.
OTHER INFORMATION
The Seaport’s harbor has been constrained seasonally from meeting the berthing
requirements of some maritime sectors, forcing vessels to berth elsewhere in Puget Sound
at additional cost and creating additional vessel emissions in the process. Moreover, it
makes for a less efficient harbor for our customers. The advent of the TWIC program,
which will be enforced starting February 28, 2009, will place additional capacity
constraints on the Seaport’s moorage capacity. Opening the new Smith Cove Cruise
terminal, will also displace barge moorage.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS:
Policy and Staff Briefing – Industrial Moorage Initiative, June 3, 2008.
Authorization for design and permitting of barge layberth improvements at Terminal
25, Pier 28 and Terminal 46, October 14, 2008.