PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
5c
Date of Meeting
April 12, 2011
DATE: March 21, 2011
TO: Tay Yoshitani, Chief Executive Officer
FROM: Darlene Robertson, Director, Harbor Services, Real Estate Division
Tim Leonard, Capital Project Manager, Capital Development Division
SUBJECT: Fishermen’s Terminal Net Locker Code Compliance analysis & request to
increase funding for in-progress code related evaluation work
Amount of This Request: $200,000 Source of Funds: General Fund
Total Project Cost: $500,000
ACTION REQUESTED:
Request Commission authorization for additional funding required to complete the required and
in-progress Fishermen’s Terminal (FT) Net Locker Code Compliance evaluation & identification
of options at an estimated potential additional cost of $200,000 bringing the total authorized
amount of this code compliance work to $500,000. This is an expense project and is funded by
the General Fund. The continuing evaluation phase of the code compliance project was not
included in the 2011 Real Estate Operating Budget and this is discussed in the Source of Funds
section below.
SYNOPSIS:
This is a safety and code compliance issue. Staff requests increasing the budget of the required
in-progress FT Net Shed Code Compliance analysis project by $200,000, in addition to the
$300,000 previously approved by the CEO, for a total amount of $500,000. In concert with the
Seattle Fire Department (SFD) and the Department of Planning & Development (DPD), much
work has been completed to date in what has turned out to be a complex evaluation of code
compliant options for storage lockers, including performing a detailed interpretation of the
applicable building and fire codes; completion of a FT fire protection report involving the
determination of potential code compliant net locker storage options; and numerous discussions
and on-site meetings with the City of Seattle and the Fishermen’s Terminal Advisory Committee
(FTAC). Additional funding is now required to enable the Port of Seattle (Port) to complete a
comprehensive evaluation and cost estimation of the code compliant storage options, identified
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
March 21, 2011
Page 2 of 4
in the completed fire protection report, as well as the ongoing coordination with the SFD and
DPD in conjunction with their currently in-progress review of these proposed options.
Completion of this work will, in turn, allow staff to subsequently recommend required net locker
improvements to the Port Commission as part of an upcoming presentation/briefing regarding the
Fishermen's Terminal 20 Year Plan to be made end of 2011.
ADDITIONAL BACKGROUND:
Recognizing the need to correct existing potentially hazardous net shed storage conditions, the
Port began working with FT tenants in 2006 to address unpermitted structural additions (i.e.
lofts) within individual net lockers as well as storage policy violations. After inspecting the net
sheds in early 2009, the Seattle Fire Department (SFD) issued a letter to the Port on April 15,
2009 in which various fire and building code violations were cited. The Port and the City of
Seattle have since agreed upon a tentative timetable to bring all of the net sheds into compliance
with the applicable codes by early 2013. As part of this agreement, FT Operations has
implemented various efforts to assist tenants with cleaning out their net lockers of tons of
materials, removed lofts where we can (this continues as lockers are vacated), and encouraged
tenant participation in a pilot storage program, approved by SFD & DPD, in which the Port has
supplied surplussed rack shelving units and removed non-permitted, tenant-constructed lofts.
This work will continue in conjunction with the project coordination with the SFD and DPD
regarding viable code compliant net shed storage options. Additionally, as recommended by the
SFD, the Port has procured the services of a fire protection engineering consultant to assist Port
staff in determining and evaluating code compliant net shed storage options.
A net sheds fire protection report has now been completed and submitted to the SFD and DPD
for their review and concurrence with the proposed code compliant net shed storage options.
Staff is also currently in the process of evaluating these options based on various criteria
including the cost of required improvements, the amount of storage provided, and net locker
lease policy ramifications for tenants and staff. Upon completion of this evaluation and the
necessary related coordination with the City of Seattle, all options, as well as the recommended
option(s), will be presented to FTAC followed by a presentation to the Port Commission, as part
of the FT 20 Year Plan, for ultimate approval and funding of the related improvements necessary
to achieve full net shed code compliance.
Much progress has been made to date in the FT net shed code compliance effort, but it has
proven to be a complex undertaking to fully interpret the storage options allowed within the
various applicable codes and assess their impacts, as well as properly coordinate with the SFD,
DPD, staff, and tenants. Accordingly, the schedule was extended into 2011 due to the remaining
work necessary to formulate a net shed storage option(s) recommendation, the ongoing related
discussions with the City and FTAC, and the delay of the planned presentation(s) to the
Commission in conjunction with the FT 20 Year Plan.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
March 21, 2011
Page 3 of 4
PROJECT JUSTIFICATION:
This is a safety and code compliance issue as cited by SFD. The completion of the FT Net Sheds
Code Compliance analysis project is necessary to identify storage options that will enable the
Port to comply with legal requirements, address potentially unsafe conditions, and still meet its
customers’ needs to the extent possible. The net shed improvement recommendations that are
determined as a result of this project are also essential for the completion of the 20 year plan for
the Fishermen’s Terminal facility.
PROJECT SCHEDULE:
Port staff’s evaluation of the identified code compliant storage options and the related approval
coordination with the City is anticipated to be completed by summer 2011. Subsequent
presentations to FTAC and the Port Commission are expected to occur in October 2011 (when
the fishing fleet returns) and November 2011, respectively.
FINANCIAL IMPLICATIONS:
Budget/Authorization Summary
Previous Authorizations
$300,000
Current request for authorization
$200,000
Total Authorizations, including this request
$500,000
Remaining budget to be authorized
$0
Total Estimated Project Cost
$500,000
Estimated Project Cost Breakdown
Consultant Services
$101,000
POS Staff
$399,000
Total
$500,000
Source of Funds
This project, which is in the evaluation phase of the FT Net Shed Code Compliance project, was
not included in the Real Estate Division’s 2011 Operating Budget because it was originally
anticipated that the work would be completed by the end of 2010. The project costs to be
incurred in 2011 will create an unfavorable operating expense variance for Harbor Services and
the Real Estate Division. It is expected that these costs will be offset by savings in other areas.
This project will be funded by the General Fund.
Financial Analysis Summary:
N/A
Health, Safety and Security - Expense Project
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
March 21, 2011
Page 4 of 4
N/A
Proposed code compliant net shed storage options are currently still
under review by the City of Seattle and therefore subject to revision.
$500,000
Harbor Services Group, Real Estate Division
The actual and forecasted impact on Net Operating Income (NOI) is
shown below:
NOI (in $000's) 2009 2010 2011 Frct Total
Revenue 0 0 0 0
Expenses 32 191 277 500
NOI (32) (191) (277) (500)
N/A
ECONOMIC IMPACTS AND BUSINESS PLAN OBJECTIVES:
This project is aligned with the business plan objectives to maintain safe facilities and assets and
provide customers with compelling value. It is needed to continue to find ways to provide
material, gear and equipment storage to commercial fishing tenants and other customers at
Fishermen’s Terminal.
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS:
Alternative 1: Do nothing. Without completion of this project, the Port will not have fully
performed the due diligence necessary to best resolve the existing building and fire code
violations and also meet its customers’ net shed storage needs where possible. For these reasons,
Alternative 1 is not recommended.
Alternative 2: Complete the proposed project in order to determine the best storage option(s) for
achieving net shed code compliance while meeting customers’ storage needs where possible.
Staff is recommending this alternative as it will enable the Port to alleviate the existing net
shed code violations and existing safety concern.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS:
On March 10, 2009, as part of the Working Waterfront round table discussion held at the Nordic
Center in Ballard, a briefing was provided to the Commission regarding the need to address the
existing net shed storage concerns at Fishermen’s Terminal.