Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
6d
ACTION ITEM
Date of Meeting
July 10, 2018
DATE: June 28, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Stephanie Jones-Stebbins, Managing Director, Maritime Division
Skip Himes, Director, Marine Maintenance
Tin Nguyen, Sr. Program Manager, Marine Maintenance
Danny Good, Project Manager III, Marine Maintenance
SUBJECT: Emerson Place fueling and vehicle maintenance site construction (CIP #C800892)
Amount of this request:
$375,000
Total estimated project cost:
$375,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) proceed with construction
of a fueling and vehicle maintenance site for Port vehicles at the Port-owned property of 1795
W. Emerson Place for a total project cost not to exceed $375,000 and (2) use Port crews to
construct the project.
EXECUTIVE SUMMARY
A new fueling and maintenance site is necessary to provide additional support for vehicles and
equipment used in association with operations of northern Port properties. The proposed
location of this site provides the most efficient access to expanding areas of the Port such as
Fishermen’s Terminal (FT), Maritime Industrial Center (MIC), and Salmon Bay Marina. The
proposed site would require a total footprint of approximately 2,300 square feet and would
service mechanical equipment ranging from standard and heavy duty forklifts to light and
medium duty utility trucks. This project will provide a more sustainable operation by allowing
fueling and maintenance to occur in an environmentally compliant manner without
transporting the vehicles and equipment a significant distance. Drainage from the maintenance
site would discharge to a King County combined sewer overflow (CSO) system, and not to
stormwater lines. Construction of the fueling and maintenance site will be permitted through
the City of Seattle and a wastewater discharge authorization granted by King County.
The selected site for construction is an undeveloped Port-owned property located immediately
South of FT, between W. Emerson Place and 16th Ave. W. Construction of the proposed site
would allow for the most efficient means of maintenance and fueling activities for Port-owned
COMMISSION AGENDA – Action Item No. _6d_ Page 2 of 5
Meeting Date: July 10, 2018
Template revised September 22, 2016; format updates October 19, 2016.
vehicles and equipment used for operations at FT, MIC, and other surrounding Port properties
as required.
JUSTIFICATION
Current fueling and maintenance of vehicles and equipment that operate at northern Port
properties requires transport offsite to the nearest maintenance site where these activities are
permitted, adding significant operational delays and cost to the Port. Sites where fueling and
maintenance activities can currently be performed in compliance with all relevant permits
include the Marine Maintenance North and South offices, located on Garfield Street west of
Terminal 91 and Horton Street in the SODO district. The Emerson site will create long-term cost
efficiencies by locating a maintenance site closer to northern Port properties, and assure fueling
and maintenance activities are performed in an environmentally compliant manner within a
properly permitted site.
DETAILS
Scope of Work
Design and build a new fueling and maintenance site on Port-owned property located just
South of Fishermen’s Terminal, adjacent to the Emerson Street Bridge. The fueling and
maintenance site will be a fully fenced concrete pad with a single sloped driveway and grading
to a King County CSO system. Engineered construction drawings are necessary, as is a city of
Seattle building permit and King County wastewater discharge permit. Pending project approval
and permitting, physical construction is expected to be completed by a combination of Port
Construction Services and small works subcontractors, who are typically small businesses.
Schedule
Construction duration is estimated at 45 calendar days and is expected to commence in late
summer 2018. The site will be ready for full intended use immediately after construction is
complete.
Activity
Commission design authorization
N/A
Design start
2017 Quarter 2
Commission construction authorization
2018 Quarter 3
Construction start
2018 Quarter 3
In-use date
2018 Quarter 4
This Request
Total Project
Design
$80,000
$80,000
Construction
$230,000
$230,000
Soft Costs
$65,000
$65,000
Total
$375,000
$375,000
COMMISSION AGENDA – Action Item No. _6d_ Page 3 of 5
Meeting Date: July 10, 2018
Template revised September 22, 2016; format updates October 19, 2016.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Existing Condition - Do not build the proposed maintenance site.
Cost Implications: Estimated $15,000 to $20,000 per year to transport equipment offsite to
nearest maintenance facility.
Pros:
(1) Preserves funds for other capital investment opportunities.
Cons:
(1) Added recurring operational and maintenance expenses associated with service delays
and transport of equipment to nearest offsite maintenance facility.
This is not the recommended alternative.
Alternative 2 – Apply for Industrial Stormwater General Permit (ISGP) at Fishermen’s Terminal,
which would allow maintenance and fueling to be done at Fishermen’s Terminal.
Cost Implications: Cost Estimate: $100,000 initial Best Management Practices (BMP)
implementation cost, $2 million+ for stormwater treatment installation, and $50,000 additional
annual program costs to maintain BMPs and treatment system.
Pros:
(1) Vehicle fueling and maintenance and equipment cleaning activities could occur on the
grounds of FT, providing timely service and repairs of operational equipment used at FT
and surrounding properties.
Cons:
(1) Would require development and implementation of an ISGP stormwater pollution
prevention plan, quarterly stormwater monitoring at representative sample points
throughout the FT property, and possibility of escalating requirements for structural
controls or stormwater treatment if sample results exceed Washington state ISGP
benchmark values.
(2) Potential costly installation and maintenance of structural controls or stormwater
treatment system throughout FT property in order to treat stormwater to meet
Washington state ISGP benchmarks.
(3) Drainage would be directly to the Stormwater system.
This is not the recommended alternative.
Alternative 3 – Build the Emerson Maintenance Site.
Cost Implications: $375,000 capital project expenditure.
Pros:
(1) Reduce recurring operational and maintenance expenses by gaining operational
efficiencies in having a vehicle and maintenance site near expanding northern Port
COMMISSION AGENDA – Action Item No. _6d_ Page 4 of 5
Meeting Date: July 10, 2018
Template revised September 22, 2016; format updates October 19, 2016.
properties. Based on a two and a half percent annual inflation rate, cost savings are
expected to pay for the site approximately halfway through its 30-year service life.
(2) Maintaining commitment to environmental sustainability by assuring maintenance and
fueling activities occur in an efficient manner, minimizing related transportation.
(3) Discharge of stormwater system to King County CSO system with treatment at West
Point wastewater treatment plant.
Cons:
(1) Initial capital project expenditure.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$275,000
$0
$275,000
Current change
$100,000
$0
$100,000
Revised estimate
$375,000
$0
$375,000
AUTHORIZATION
Previous authorizations
$80,000
$0
$80,000
Current request for authorization
$295,000
$0
$295,000
Total authorizations, including this request
$375,000
$0
$375,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
Financial Analysis and Summary
Project cost for analysis
$375,000
Business Unit (BU)
Marine Maintenance
Effect on business performance
(NOI after depreciation)
This project is expected to result in estimated cost
savings of approximately $17K per year. The project will
increase annual depreciation by approximately $12.5K
over the expected 30-year asset life.
IRR/NPV (if relevant)
NPV: ($83K)
IRR: 5.45%
CPE Impact
N/A
COMMISSION AGENDA – Action Item No. _6d_ Page 5 of 5
Meeting Date: July 10, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Future Revenues and Expenses (Total cost of ownership)
No new revenue is expected from this project. Maintenance expenses associated with the site
are expected to be approximately $3K per year.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None