Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
6k
ACTION ITEM
Date of Meeting
January 8, 2019
DATE: December 28, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Kenneth R. Lyles, Director, Maritime Operations and Security
Tim Leonard, Capital Project Manager
SUBJECT: Salmon Bay Marina Docks D-E Replacement Design – CIP C801070
Amount of this request:
$500,000
Total estimated project cost:
$5,900,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute project design
services, in an amount not to exceed $800,000, including $300,000 previously authorized, in
support of the Port’s replacement of the existing Docks D-E at Salmon Bay Marina, including the
associated bulkhead portion and dredging permitted under the existing Master Use Permit.
EXECUTIVE SUMMARY
The purchase of the Salmon Bay Marina property by the Port in 2018 included an approved
Master Use Permit (MUP) for new facility in-water and upland improvements as well as a
permit from the U.S. Army Corps of Engineers, and associated regulatory agencies, that allows
for the dredging required with the replacement of three existing recreational boat docks at the
west end of the marina (refer to accompanying PowerPoint). The Salmon Bay Marina Docks D-E
Replacement project proposes to take advantage of the existing in-water permits before they
expire in February 2020 and replaces the three existing concrete float docks with two new
wider concrete float docks, and associated dredging, to provide improved continued moorage
for recreational boats and bring the float docks up to the Port’s service and safety standards.
The proposed work also includes reinforcement of the existing timber bulkhead with new steel
sheet piling, and dredging of the applicable marina area.
A $5,900,000 placeholder amount for total project costs has been included in the 2019 Capital
Budget and Plan of Finance. This amount is based on a preliminary estimate and will be
finalized in the course of completing the project design which is currently at a 0% stage.
COMMISSION AGENDA – Action Item No. 6k Page 2 of 5
Meeting Date: January 8, 2019
Template revised September 22, 2016; format updates October 19, 2016.
JUSTIFICATION
Under the existing MUP and dredging permits these improvements are required to begin
construction by February 2020.
In addition to upgrading facility assets to the Port’s standard for service and safety, the
replacement of Docks D-E at Salmon Bay Marina supports the following Maritime Division goals
toward achieving Century Agenda objectives:
1. Continue to grow the economic value of the maritime cluster including the number of
local jobs and business revenue.
2. Generate new revenue to support the Port’s commitments to stakeholders.
3. Prioritize development that maximizes utilization of facility assets.
4. Be the greenest, and most energy efficient port in North America.
Prior to the advertisement for construction bids, the project manager will work with the
Diversity in Contracting Program team to determine Women & Minority Business Enterprises
(WMBE) participation opportunities in accordance with the terms of Resolution No. 3737. The
requirement for a project labor agreement will be determined as well in coordination with
Labor Relations.
Staff is recommending moving forward with this project at this time, as the permits would
expire if we delay. As we move forward with design, we will be refining costs and looking for
tenants that will use both the uplands and the new docks, and refining revenue projections.
We will return to Commission for construction authorization and will continually review
whether the financial information supports moving forward.
DETAILS
The proposed Salmon Bay Marina in-water improvements, permitted under the existing MUP,
consist of replacing existing concrete float Docks D East, D West, and E with two new 12-feet
wide floating concrete docks (150 lineal feet and one 170 lineal feet in length) secured by steel
piles, accessed via gangways, and equipped with electrical power and water utilities to serve
the needs of recreational vessel customers. The existing float docks, which are secured by a mix
of piles including creosote treated timber piles, have a limited remaining service life, negligible
utility services, and pose a safety risk due to their mature condition. Approximately 200 lineal
feet of the existing timber bulkhead will be reinforced with new steel sheet piling installed
behind it as well.
The permitted dredging consists of a maximum of 11,900 total cubic yards of sediment to be
removed using a barge-mounted clamshell and/or hydraulic dredge in accordance with U.S.
Army Corps of Engineers permitting requirements. The area to be dredged is approximately an
acre in area and the existing current water depth, which varies between approximately 5 and
15 feet, will be increased to a maximum depth of 16 feet beyond the proposed dredge slope
COMMISSION AGENDA – Action Item No. 6k Page 3 of 5
Meeting Date: January 8, 2019
Template revised September 22, 2016; format updates October 19, 2016.
that will extend outwards from the bulkhead. The existing permit allows for approximately
9,300 cubic yards of sediment to be disposed at a designated open-water Elliott Bay Puget
Sound Dredged Disposal Site, while the remaining estimated quantity of approximately 2,600
cubic yards of unsuitable material will require disposal of at an appropriate upland facility.
Final suitable and unsuitable sediment quantities and disposal locations are subject to required
approval by the Dredge Material Management Program. All removed sediment is planned to be
transported to the designated disposal site(s) via barge.
Required project environmental mitigation improvements include a nearshore habitat bench to
be installed along the bulkhead and topped with a fish-friendly gravel mix, the installation of
shot-rock armoring to ensure stability of a portion of the proposed dredge slope and topped
with mixture of sand and gravel for habitat enhancement, and a total of twelve 35-feet long by
6-feet wide translucent polycarbonate panels to be installed in the metal roofs of the existing
covered moorage (Docks A-C) to allow natural light penetration to the water below.
Scope of Work
Facility improvements are anticipated to include, but are not necessarily limited to, the
following:
1. Demolition and disposal of existing concrete float docks D-E
2. Dredging of applicable marina area up to a 16’ maximum depth
3. Installation of new steel sheet piling behind existing timber bulkhead
4. Installation of new concrete float docks, gangways, and associated utility services
5. Implementation of applicable environmental best management practices
Schedule
Activity
Commission design authorization
Design start
Commission construction authorization
Construction start
In-use date (Phase I)
Cost Breakdown
This Request
Total Project
Planning/Design/Permitting
$500,000
$800,000
Construction
0
$5,100,000
Total
$500,000
$5,900,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Option One: Do nothing – Pass on Salmon Bay Marina Docks D and E Replacement
Pros
Retains Port capital funds for other priority projects and financial initiatives
COMMISSION AGENDA – Action Item No. 6k Page 4 of 5
Meeting Date: January 8, 2019
Template revised September 22, 2016; format updates October 19, 2016.
Avoids temporary construction impacts to existing facility customers
Cons
Missed opportunity to take advantage of existing in-water permits included in property
purchase. Re-procurement of these permits by the Port will require an estimated five to
six years, substantial additional cost, and the future permit requirements will likely be
more stringent.
Missed opportunity to replace existing, limited service life, facility assets
Missed opportunity for improving long-term financial viability of Salmon Bay Marina
This is not the recommended alternative
Option Two: Approve SaBM Docks D and E Replacement Design Funds
Pros
Takes advantage of existing in-water permits included in property purchase that would
otherwise require five to six years to re-obtain and likely contain more stringent
requirements
Replaces existing, limited service life, facility assets with new long-term improvements
meeting Port standards for service and safety
Creates multiple in-water environmental benefits
Improves long-term financial viability of Salmon Bay Marina
Allows us to retain option of using permits as we look for tenant that will utilize both
uplands and new docks
Cons
Requires major Port investment of funds
Creates temporary construction impacts to existing facility customers
This is the recommended alternative
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$0
$0
$5,900,000
AUTHORIZATION
Previous authorizations
$300,000
0
$300,000
Current request for authorization
0
0
$500,000
Total authorizations, including this request
0
0
$800,000
Remaining amount to be authorized
$0
$0
$5,100,000
COMMISSION AGENDA – Action Item No. 6k Page 5 of 5
Meeting Date: January 8, 2019
Template revised September 22, 2016; format updates October 19, 2016.
Annual Budget Status and Source of Funds
This project was included in the 2019 Plan of Finance under CIP C801070 Salmon Bay Marina
Docks D & E Replacement with a total project cost of $5,900,000.
This project will be funded by the General Fund.
Financial Analysis and Summary
Project cost for analysis
$5,900,000
Business Unit (BU)
Recreational Marinas & Commercial Operations
Effect on business performance
(NOI after depreciation)
The docks will preserve annual revenue of approximately
$100K.
At current estimates and assuming an asset life of 50
years, this project is expected to add $118K in annual
depreciation.
We are evaluating tenants that will use both uplands and
docks, improving this NOI
IRR/NPV (if relevant)
NPV: ($4.3M)
IRR: 1.6%
CPE Impact
N/A
ATTACHMENTS TO THIS REQUEST
(1) Salmon Bay Marina Design PowerPoint
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
November 27, 2018 – Commission approved 2019 Capital Budget and Plan of Finance
including Salmon Bay Marina Docks D-E Replacement
December 5, 2017 – Commission authorized the Port’s purchase of the Salmon Bay Marina
property.