Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6b
ACTION ITEM
Date of Meeting
June 25, 2019
DATE: June 12, 2019
TO: Stephen P. Metruck, Executive Director
FROM: John Hall, Marine Maintenance Project Manager III
Shannon Zink, Real Estate Manager
SUBJECT: Pier 66 HVAC Controls Replacement (CIP #C801006)
Amount of this request:
$450,000
Total estimated project cost:
$750,000
ACTION REQUESTED
Request a single Commission authorization for the Executive Director to: (1) complete design
and construction of Phase II of the modernization of HVAC controls at the Bell Harbor
International Conference Center at Pier 66 in an amount not to exceed $450,000 of a total
estimated project cost of $750,000; and (2) use port crews to complete the work.
EXECUTIVE SUMMARY
Approval of this request will allow completion of the final phase of updating the 24-year-old
HVAC control system at Pier 66. Currently, there are two control systems in operation — the
legacy system, which controls pre-existing equipment and was installed in 1995, and the new
stand-alone digital controls (SDC) system, which is an updated operating system installed during
the recent cruise terminal build out. While the newer system is able to interact with both the
new and original controls, the legacy system is only able to work with the original controls.
In May of this year, Phase I of the modernization of the legacy controls was completed as a
small project in response to a control system failure determined to be extremely urgent. This
current request is for funding Phase II of the project to modernize the remaining legacy
controls.
JUSTIFICATION
The legacy control system, which controls critical heating and cooling equipment, is obsolete
and vendors are no longer able to obtain replacement control boards. If the remaining
outdated controls fail, we will not be able to operate the affected heating and cooling
equipment servicing the facility. In addition to minimizing disruptions of building operations,
modernized controls will improve building energy efficiencies, assist in developing a
COMMISSION AGENDA – Action Item No. __6b_ Page 2 of 4
Meeting Date: June 25, 2019
Template revised September 22, 2016; format updates October 19, 2016.
comprehensive sequence of operations, and reinforce compliance with the City of Seattle
Ordinance regarding building energy tune-ups.
DETAILS
The project will be led by Marine Maintenance Electricians working in conjunction with a small-
works mechanical contractor. Given the relatively small scope of the project, the required
design is minimal and will be completed with in-house resources.
Scope of Work
This project will replace remaining building control units (BCUs) and their associated unit
controllers (UCs). Once installed, the new units will be commissioned and added to the
sequence of operations.
Schedule
The work of this project will be completed in the fourth quarter of 2019.
Activity
Commission design authorization
2019Q2
Design start
2019Q2
Commission construction authorization
2019Q2
Construction start
2019Q3
In-use date
2109Q4
Cost Breakdown
This Request
Total Project
Design
$20
$20
Construction
$430K
$730K
Total
$450
$750
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not complete the controls modernization; instead complete minor repairs to
the controls system as needed.
Cost Implications: $5,000 to $15,000 estimated for annual urgent repairs to legacy controls.
Pros:
(1) Conserves capacity on the capital budget.
Cons:
(1) Risks a major controls failure that would significantly disrupt conference center
operations.
(2) Existing controls do not support building energy efficiency.
COMMISSION AGENDA – Action Item No. __6b_ Page 3 of 4
Meeting Date: June 25, 2019
Template revised September 22, 2016; format updates October 19, 2016.
This is not the recommended alternative.
Alternative 2 – Fund Phase II of the project and modernize all remaining legacy controls.
Cost Implications: $450,000 expenditure from the capital budget.
Pros:
(1) Maintains Port standards for modern facilities.
(2) Provides effective climate control for the conference center.
(3) Supports building energy efficiency.
Cons:
(1) Requires an expenditure from the capital budget.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$850,000
$0
$850,000
Previous changes – net
0
0
0
Current change
($100,000)
0
($100,000)
Revised estimate
$750,000
0
$750,000
AUTHORIZATION
Previous authorizations
$300,000
0
$300,000
Current request for authorization
$450,000
0
$450,000
Total authorizations, including this request
$750,000
0
$750,000
Remaining amount to be authorized
$450,000
0
$450,000
Annual Budget Status and Source of Funds
The funding for this project was included in the 2019 Plan of Finance for Economic
Development Division under CIP C801006 P66 HVAC Systems Upgrade with a total project cost
of $2,915,000. The current total project estimate is $2,530,000 including HVAC Controls
Replacement of $750,000.
The project will be funded by the General Fund.
Financial Analysis and Summary
Project cost for analysis
$750,000
Business Unit (BU)
Portfolio Management
COMMISSION AGENDA – Action Item No. __6b_ Page 4 of 4
Meeting Date: June 25, 2019
Template revised September 22, 2016; format updates October 19, 2016.
Effect on business performance
(NOI after depreciation)
Depreciation of $75K per year for 10 years. There are no
incremental revenues associated with this project.
IRR/NPV (if relevant)
NPV is present value of project costs.
Future Revenues and Expenses (Total cost of ownership)
Modernizing our existing assets readies them for current and future changes, extends their
useful life, and preserves the economic vitality of our operations. The cost saving of keeping
the existing legacy components offers no long-term savings. Even without considering the risk
of a major failure, if these upgrades are not made at this time then the system will need
replacement in a few years and will require a capital expenditure at that time. In considering
maintenance costs, the new control units will not result in any additional increases.
ATTACHMENTS TO THIS REQUEST
Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None
