Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
8d
ACTION ITEM
Date of Meeting
February 26, 2019
DATE: February 19, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Stephanie Jones-Stebbins, Managing Director, Maritime Division
Kenneth Lyles, Director, Maritime Operations and Security
Tracy McKendry, Senior Manager, Recreational Boating
Mark Longridge, Capital Project Manager
SUBJECT: Additional Construction funding for Shilshole Bay Marina Multi-Use Customer
Service Facilities (CIP #C800356) and Shilshole Bay Paving (CIP #C800355)
Amount of this request:
$2,900,000
Total estimated project cost:
$15,000,000
ACTION REQUESTED
Request Commission authorization for $2,900,000 in additional construction funds to advertise
a major works construction project for the Shilshole Bay Marina Customer Service Facilities and
Paving projects for a total project authorization of $15,000,000.
EXECUTIVE SUMMARY
The Shilshole Bay Marina Customer Service Facilities and Paving projects replace marina
restrooms, laundry and shower facilities built in 1961, and rehabilitate pavement in poor and
failing condition. This Commission previously authorized $12.1 million to design and construct
these improvements in November 2017.
Bids opened in July 2018 were 33 percent higher Engineer’s Estimate for the construction scope
of work. Analysis of the bids and discussions with bidders confirmed that the bids received
accurately reflected market conditions and were not skewed by specific contract requirements
such as phasing.
Staff spent several months developing and evaluating alternatives to proceed with the project
in a way that would deliver maximum customer-service improvement, but better align the
scope and project budget. The alternatives were also weighed against the feedback from
moorage and business tenants collected during the individual and public engagement meetings
held throughout design.
Staff recommends reducing the project scope and increasing the construction authorization by
$2.9 million for a revised total project estimate of $15.0 million which includes a 15%
COMMISSION AGENDA – Action Item No. 8d Page 2 of 7
Meeting Date: February 26, 2019
Template revised September 22, 2016; format updates October 19, 2016.
construction contingency to account for market volatility. The project elements most directly
benefiting tenants and customers would be preserved. This approach allows staff to use design
and permits already obtained rather than slowing project delivery for new design and permits.
Examples of reduced scope include eliminating the conversion of the M2 and M5 buildings to
storage/utility facilities, eliminating decorative LED external lighting, and deleting bike storage
enhancements. Also, the planned ground-source heat pump system would be replaced with a
more conventional, but equally efficient, air-source system. The paving project scope remains
unchanged.
This project is budgeted in the 2019 CIP for $11,461,000; any remaining shortfall in the final
project cost will be funded through savings from two other projects.
JUSTIFICATION
The current restroom facilities, built in 1961, are at the end of their useful life. In their current
condition, Shilshole’s restrooms do not adequately meet the needs of moorage tenants,
commercial customers, and marina visitors who expect suitable and accessible facilities. In fact,
these deteriorated facilities put Shilshole at a competitive disadvantage when compared to
other local marinas. Similarly, the paving shows signs of distress and structural failure in some
areas.
In response to Century Agenda environmental strategy and goals, Port staff worked to include
sustainable design elements including stormwater improvements and solar photovoltaics.
These improvements will reduce operating costs, while seeing significant environmental
benefits.
Repairing and replacing these critical facilities with upgraded ones will ensure the
competitiveness of Shilshole Bay Marina as a first-class facility in the Puget Sound region.
DETAILS
Project Objectives
The Customer Service Facilities project replaces the current facilities at Shilshole Bay Marina
with new customer service buildings that include restrooms, showers, laundry facilities, and
other tenant-use improvements to provide a level of service above what is currently provided.
The Paving project extends the useful life of the pavement throughout the facility and repairs
existing damage. Both projects incorporate feedback from moorage and business tenants
collected during the individual and public engagement meetings.
Scope of Work
The Customer Service Facility project scope consists of the construction of three new buildings.
There will be two large, multi-use buildings (restroom, shower, and laundry) in the south and
COMMISSION AGENDA – Action Item No. 8d Page 3 of 7
Meeting Date: February 26, 2019
Template revised September 22, 2016; format updates October 19, 2016.
central areas of the marina, plus a smaller restroom/shower-only building at the north end of
the facility. As part of the project, existing buildings M4, M5, and M6 will be demolished.
The South and Central buildings would have a footprint of approximately 2,700 square feet
each and include separate ADA accessible men’s and women’s restrooms with toilet, sink, and
shower areas, along with two family all-gender restrooms with shower facilities that will also be
ADA accessible. These larger buildings incorporate tenant laundry areas larger than the existing
facilities with room for further expansion as needed.
The North building would be approximately 700 square feet and include three individual all-
gender restrooms and three shower facilities. Although consolidated into fewer buildings, the
new facilities will significantly increase the number of showers over the existing configuration,
and more than double the current laundry capacity. These were top priorities in outreach
feedback.
The paving project scope consists of pavement replacement and/or overlay to address failed or
failing areas along the entire length of the parking lot that were not replaced or rehabilitated
during the 2005-2008 capital redevelopment of the marina site.
The current condition of the pavement throughout much of the site is poor, including some
localized failed areas that will be replaced entirely. The majority of the site will be ground and
overlaid with a 2.5-inch overlay of asphalt pavement that will be restriped.
Diversity in Contracting
This procurement will include a 14% WMBE aspirational goal and port staff is coordinating
outreach efforts to maximize participation.
Schedule
A new bid package will be prepared as soon after authorization as possible and re-advertised,
hopefully within six weeks. Target for start of construction is Q3 2019. The construction
duration is still expected to be 6-8 months, with completion and opening of the facilities
planned for Q2 2020. Paving work is highly weather dependent and so may stretch beyond the
opening of the new buildings.
Activity
Commission additional construction authorization
Construction start
In-use date
COMMISSION AGENDA – Action Item No. 8d Page 4 of 7
Meeting Date: February 26, 2019
Template revised September 22, 2016; format updates October 19, 2016.
Cost Breakdown
This Request
Total Project
Design
$0
Construction
$2,900,000
Total
$2,900,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Staff spent several months developing and evaluating alternatives to proceed with the project
in a way that would deliver maximum customer-service improvement, but better align the
scope and project budget. Nineteen alternatives were identified by the project group, with
nine warranting further review against weighted criteria including budget reduction, overall
customer service level, impact to permitting and schedule, etc.
Alternative 1 – Rebid the work as previously advertised with no scope reductions, include a
15% construction contingency (increased from 10%).
Cost Implications: Total project cost – $16.3 million; additional funding required $4.2 million
Pros:
(1) Design is complete and ready to advertise.
(2) Scope includes all elements previously discussed with tenants including improved bike
facilities and all sustainability improvements.
Cons:
(1) Significant increase in funding required.
This is not the recommended alternative.
Alternative 2 – Cut scope to fit the existing authorization of $12.1 million.
Cost Implications: Total project cost – $12.1 million with no additional funding required
Several alternatives were considered that would cut the scope sufficiently to stay within the
current construction authorization, including a significant reduction of restroom square
footage, elimination of the laundry facilities, and the use of smaller modular buildings. All of
these significantly reduced the level of service and fixture count from the planned
improvements and in many cases to levels below what the current facilities offer.
Pros:
(1) No additional funding required.
Cons:
(1) Severely reduced scope/amenities/fixture counts.
(2) Would require complete redesign and re-permitting, which would add at least an
additional year or more to the project schedule.
(3) All sustainability elements would be eliminated (solar and ground source heating).
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. 8d Page 5 of 7
Meeting Date: February 26, 2019
Template revised September 22, 2016; format updates October 19, 2016.
Alternative 3 – Remove the North Restroom and other improvements from the scope, and
request an additional $750,000 authorization.
This alternative would remove the North Restroom (highest cost/square foot in the previous
bid) from the bid plans and instead maintain the current M5 and M6 restrooms in the north
end of the marina.
Cost Implications: Total project cost – $12.85 million with additional authorization of $750,000
Pros:
(1) Provides most of the improvements of the original scope, cutting only the highest
cost/square foot areas.
(2) By keeping the current M6 online it would still provide facilities within easy walking
distance of all areas (concern that led to the development of the North restroom).
(3) Preserves laundry service (a top tenant request).
(4) Uses most of the existing design.
(5) Fixture counts minimally impacted.
(6) Low schedule impact, some redesign, and expect to be able to use the existing permit
with minor modifications.
Cons:
(1) Requires additional authorization. Contingency kept at 10% to minimize this additional
amount (which carries additional risk)
(2) Some sustainability elements and other improvements removed to meet budget goal
(geothermal, utility buildings, bike storage).
(3) All new buildings and improvements favor the South end of the marina – North end
keeps current outdated facility (even if remodeled later).
This is not the recommended alternative.
Alternative 4 – Trim or defer non-essential improvements but keep the three main new
restroom buildings
Cost Implications: Total project cost – $15 million with additional authorization of $2.9 million
Pros:
(1) Provides most of the improvements of the original scope and all three main buildings.
Closest to tenants’ expectations while still reducing overall scope by over $1 million.
(2) Provides facilities within easy walking distance of all areas (concern that led to the
development of the North restroom).
(3) Preserves laundry service (a top tenant request).
(4) Uses most of the existing design.
(5) Fixture counts minimally impacted.
(6) Low schedule impact, minimal redesign, and expect to be able to use the existing
permit with minor modifications.
COMMISSION AGENDA – Action Item No. 8d Page 6 of 7
Meeting Date: February 26, 2019
Template revised September 22, 2016; format updates October 19, 2016.
Cons:
(1) Requires additional authorization.
(2) Some sustainability elements modified and other improvements removed to meet
budget goal (geothermal, utility buildings, bike storage).
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$12,100,000
$0
$12,100,000
Current change
$2,900,000
0
$2,900,000
Revised estimate
$15,000,000
0
$15,000,000
AUTHORIZATION
Previous authorizations
$12,100,000
0
$12,100,000
Current request for authorization
$2,900,000
0
$2,900,000
Total authorizations, including this request
$15,000,000
0
$15,000,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
The Shilshole Bay Marina Customer Service Facilities and Paving projects are included in the
2019 Plan of Finance under CIP C800356 for Shilshole Bay Marina Multi-Use Customer Service
Facilities and CIP C800355 Shilshole Bay Marina Paving, for a total amount of $11,461,000. The
remaining shortfall of $3,539,000 will be funded by a combination of savings from
underspending for CIP C800531 FT Docks 3, 4, and 5 Fixed Pier Improvements and CIP C800002
Maritime Division Contingency.
This project will be funded by the General Fund.
Financial Analysis and Summary
Project cost for analysis
$15,000,000
Business Unit (BU)
Recreational Boating
Effect on business performance
(NOI after depreciation)
This project will support/maintain current moorage
revenue at SBM. Incremental depreciation expense from
the Customer Service Facility project is estimated at
$430,000 per year, based on a 30-year asset life.
Incremental depreciation expense from the Paving project
is estimated at $105,000 per year, based on a 20-year
asset life. NOI after Depreciation will decrease by the
associated depreciation from this project.
IRR/NPV (if relevant)
The NPV is present value of the project cost
CPE Impact
N/A
COMMISSION AGENDA – Action Item No. 8d Page 7 of 7
Meeting Date: February 26, 2019
Template revised September 22, 2016; format updates October 19, 2016.
Future Revenues and Expenses (Total cost of ownership)
No future revenues are anticipated as a result of this project.
ADDITIONAL BACKGROUND
In 2006-2008 the Port made significant investments to upgrade the facilities at Shilshole Bay
Marina. New docks were installed throughout the marina, a new administration building was
constructed to replace the aging and seismically unsafe building, and some landside
improvements were also made, including replacement of the M7 restroom at the north end of
the marina.
However, due to budget constraints at the time, several components of the original capital
redevelopment plan were not completed, including the replacement of the restroom and
laundry facilities and replacement or overlay of the North and South parking areas.
Instead, these two projects were added to the capital plan to address the oldest parts of the
facility and to respond to the marina customers’ top request of improved restrooms, showers,
and laundry facilities.
During the planning phase of the projects, it was identified that a single major works contract
would accommodate the scope of both projects and provide efficiencies in both contracting
and construction management. This single contract approach remains the current plan.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
November 14, 2017 – The Commission authorized construction funding request.
September 27, 2016 – The Commission authorized additional design funding request.
January 6, 2015 – The Commission authorized the Design request.
September 30, 2014 – Design Authorization request - Tabled