PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
5b
Date of Meeting
May 24, 2011
DATE: May 13, 2011
TO: Tay Yoshitani, Chief Executive Officer
FROM: Scott Pattison, Seaport Asset Manager
Anne Porter, Capital Project Manager
SUBJECT: Terminal 18 Pilot Pile Cap Repair and Maintenance Project
(PID #104559)
Amount of This Request: $250,000 Source of Funds: General Fund
Total Project Cost: $1,000,000
ACTION REQUESTED:
Request authorization for the Chief Executive Officer to develop design documents, apply for
permit approvals, and prepare construction documents as part of the Terminal 18 (T-18) Pilot
Pile Cap Repair and Maintenance Project (PID #104599) for an estimated cost of $250,000
bringing the total authorized cost of this project to $300,000. Following design, Port of Seattle
staff will return to the Commission to seek authorization to complete the project which may
include major construction contracts, work performed by Port crews and the purchase of
equipment and materials. The total project cost is estimated at $1,000,000. This project was not
anticipated in the 2011 Operating Expense Budget and will create an unfavorable expense
variance.
SYNOPSIS:
This memo requests Commission approval for the permitting, design and project management
funding in the amount of $250,000 for the proposed T-18 Pilot Pile Cap Repair and Maintenance
Project. This pilot project is proposed in order to accomplish needed repair and maintenance and
to obtain practical experience as an aid in implementing future pile cap repairs at T-18 and other
marine terminals. This pilot repair project will provide information essential for future projects
with larger scopes of work, including evaluating, planning, designing, and implementing pile cap
maintenance and repair actions for similar port infrastructure and assets. The Commission was
previously briefed on the project on May 10, 2011. This pilot project was not anticipated in the
2011 Operating Expense Budget and will create an unfavorable expense variance.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
May 13, 2011
Page 2 of 5
PROJECT JUSTIFICATION:
This pilot project will repair between two and five of the 308 existing pile caps at T-18 to
maintain their structural capacity and preserve existing revenues. As a pilot project, the results
will provide practical guidance to:
1) understand the extent and rate of deterioration of pile caps within our pier structures;
2) effectively analyze site conditions and more precisely determine when further repairs are
required;
3) prepare specific design documents and detailed project specifications;
4) reduce risk and cost associated with similar and expanded future pile cap repair and
maintenance actions; and
5) identify means to perform maintenance and repair actions while minimizing disruption of
cargo operations at marine terminals, avoiding negative impacts on Port tenants and
preserving revenues to the Port.
PROJECT STATEMENT AND OBJECTIVES:
Project Statement:
Conduct a pilot pile cap repair and maintenance project at T-18 for less than $1,000,000 by
end of 2012.
Project Objectives:
The purpose of this pilot project is to accomplish the following objectives:
• Accurately estimate material and labor costs
• Refine repair procedures to be more time and cost-efficient
• Identify effective means for construction access
• Document repair production rates for various identified repair solutions
• Reduce disruption to marine terminal cargo operations
• Reduce the cost, time and disruption associated with pile cap repairs anticipated at other
marine terminals
PROJECT SCOPE OF WORK AND SCHEDULE:
Scope of Work:
The repair and maintenance scope of work includes selecting a representative sample of pile caps
for repair and maintenance, selecting an array of alternative repair solutions to gain field
experience with each, and performing repairs to this representative sample of pile caps.
Alternative repair solutions may include any or each of the following:
Removal of cracked and corrosive concrete from the lower portion of the pile caps, cleaning the
exposed concrete surface, abatement of corrosion to existing reinforcing steel, installation of
cathodic protection systems, applying bonding agent to existing concrete, casting of new
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
May 13, 2011
Page 3 of 5
concrete, epoxy injection into small cracks, and/or encasement of portions of pile caps within
fiberglass reinforced polymers (FRP).
Design and permitting efforts will be provided by in-house staff. Professional services will be
needed for specialty design services such as concrete mix and cathodic protection design. These
services will be contracted through existing indefinite duration/indefinite quantity agreements.
Schedule:
The target schedule is to repair a representative sample of the pile caps by June 2012. The
schedule milestones are as follows, subject to change depending on permits, the scope and nature
of the final repair and maintenance actions and methods selected.
Start
Pre –Design
January 2011
Design
June 2011
Permits
September 2011
Construction
January 2012
FINANCIAL IMPLICATIONS:
Budget/Authorization Summary
Original Budget
$0
Previous Authorizations
$50,000
Current request for authorization
$250,000
Total Authorizations, including this request
$300,000
Remaining budget to be authorized
$700,000
Total Estimated Project Cost
$1,000,000
Project Cost Breakdown
Construction
$615,000
Construction Management
$64,000
Design
$194,000
Project Management
$77,000
Permitting
$29,000
State & Local Taxes (estimated)
$21,000
Total
$1,000,000
Source of Funds
The design and permitting efforts for the T-18 Pilot Pile Cap Repair Project in the amount of
$300,000 was not anticipated in the 2011 Operating Expense Budget and, accordingly, will
create an unfavorable expense variance. The Seaport Division will work to find offsets to this
unfavorable variance through either increased revenue or through expense reductions in other
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
May 13, 2011
Page 4 of 5
areas. One currently known offset is $250,000 budgeted in Seaport contingency expense. The
source of funds will be the General Fund.
Financial Analysis Summary:
CIP Category
NA – Pilot Pile Cap Repair Project
Project Type
Repair
Risk adjusted Discount
rate
NA
Key risk factors
Project does not accomplish stated objectives.
Cost to conduct the pilot exceeds the stated budget.
Project is not completed by stated schedule.
Project cost for analysis
$1,000,000
Business Unit (BU)
Seaport - Containers
Effect on business
performance
The project will increase operating expenses in 2011 by
$300,000 and, to the extent offsetting saving are not found, will
reduce 2011 NOI Before Depreciation by the same amount.
The balance of funding for this expense project will be included
in the Seaport’s 2012 Expense Budget.
IRR/NPV
NA
ECONOMIC IMPACTS AND BUSINESS PLAN OBJECTIVES:
Proceeding with this pilot project will ensure continued use of the repaired pile cap portions of
the terminal by the tenant and preserve existing revenues for the port.
STRATEGIC OBJECTIVES:
This project supports Seaport Economic Vitality by analyzing and evaluating the service-life
requirements of aging infrastructure assets in a cost-effective manner minimizing and avoiding
potential disruption of tenant cargo operations.
ENVIRONMENTAL SUSTAINABILITY AND COMMUNITY BENEFITS:
Design and project implementation will include practices to avoid and minimize potential
negative environmental effects. The pilot project will identify repair and maintenance
methods, materials, and practices for effective under-pier work while avoiding release of
deleterious materials to the environment and reducing the potential for adverse effects on
aquatic area natural resource values.
Timely repair and maintenance extends the service life of existing infrastructure, as an
alternative for avoiding more environmentally disruptive and resource/materials consumptive
large scale structure replacement actions.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
May 13, 2011
Page 5 of 5
TRIPLE BOTTOM LINE:
Extending the useful service life of our existing assets defers eventual replacement costs for a
longer period of time, supporting the economic vitality of our operations.
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS:
1. Conduct a pilot repair and maintenance project and use the results of the design, planning,
and implementation experience to improve efficiency of future similar projects, including
cost effectiveness, schedule, and operation impacts. This is the recommended alternative.
2. Complete major repairs without the benefit of a pilot project. This alternative would reduce a
portion of the costs associated with a stand-alone pilot project and get the work done sooner,
thus avoiding further deterioration and more extensive repairs in the future. However, this
alternative was rejected due to the high risk of unknowns for a full-scale repair project. Key
risks include working in areas beneath existing piers and above tidal elevations at low tide,
variable productivity rates, and other risks that can be better understood by performing a pilot
project.
3. Monitor the pile cap distress over time and defer the cost of the pilot project and major
repairs until a later date. This alternative was rejected because further delay is likely to result
in costlier repairs in the future as the rate of deterioration in the pile caps accelerates over
time.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS:
May 10, 2011, the Commission was briefed on this project.