Item No. 9b
.
Meeting Date: October 22, 2019

Maritime and Economic Development
2020-2024 Capital Improvement Plan (CIP)

Sustaining the
Working Waterfront
October 22, 2019
1

Agenda
• Capital Improvement Plan (CIP) Development Schedule
• Review CIP Priorities and Project Status
• Key Assumptions
• Overview of 2020 to 2024 CIP
- Deeper dive on key projects
- Discuss new projects (not included in 2019-2023 CIP)
- Five Year Estimated Spend

• Discuss Next Steps
- Plan of Finance

• Appendix

2

2020 CIP Development

2020 CIP
Planning

(Spring)

Preliminary
2020 CIP &
Prioritization
(June)

2020 MD/EDD
Business Plan
& Budget
Development
Commission
Briefing

CIP
Development
Commission
Briefing

(June)

(Aug 13)

Commission
Budget Study
Session
2020-2024 CIP
Briefing
(Oct 8)

Year two of five year investment plan

Tax Levy &
Draft Plan of
Finance
Commission
Briefing

First Reading
& Public
Hearing for
2020 Budget

2nd Reading
& Final
Passage of
2020 Budget

(Oct 22)

(Nov 13)

(Nov 19)

3

Working Waterfront Principles
1. Maximize the use of the Port's deep-water facilities and
industrial lands to serve Maritime Industrial uses
2. Expand economic, cultural and community benefits
3. Support financial sustainability of the Port
4. Incorporate leading edge environmental stewardship
5. Facilitate improved transportation mobility of people
and goods in the region
6. Provide consistent excellent customer service
4

Capital Improvement Plan Priorities
Asset
Stewardship:

Financial
Sustainability:

Community and
Environment:

Maintaining the Port's capital
assets and modernizing
Seattle's working waterfront

Investing in projects that support
maritime industries and the Port's
long term funding capacity

Stewarding our environment
responsibly, partnering with
surrounding communities, and
promoting social responsibility

5

Key Assumptions
• Proposed CIP assumes continuation of five-year investment plan
- Year two of 3% annual levy increase
- Projects have been prioritized according to:
• Alignment with Century Agenda
• Contribution to Financial Sustainability, and/or
• Identification as Critical Renewal & Replacement Projects

- Funded CIP excludes $187M for prospective projects, of which $127M would be
used for asset renewal and replacement

• Expanded capital capacity resulting from new project revenues coming online,
maturing bonds, and reduction of strategic reserve
• Updated NWSA operating forecast not yet available
• Funding capacity and taxy levy briefing scheduled for October 22

6

Degree of Uncertainty

Capital Improvement Plan Status & Certainty

Port historically delivers 80 percent of CIP over a five year period

7

Major Project Updates and Highlights
Updates from 2019-2023 key projects
• Advanced the status on 11 of the 12 major projects
• Some projects have longer schedules, but all on track in the 5 year horizon

Terminal 91 Uplands: Design team selected by Q4 2019
T46 Cruise Terminal:
• Partner RFP submittals due October 16, with selection in Q1 2020,
• Full EIS to begin scoping this month
• Design of Port lead elements underway

Waterfront Electrification: P66 electrification coming to Commission for
design funds next month. Complete in 2022.
8

Maritime & Economic Development
Proposed 2020-2024 CIP

Est
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Maritime & Economic Development 2020-2024 CIP
$millions

Projects included in 2019-2023 CIP:
Terminal 117 Restoration
Bell Harbor Conference Center Modernization
Fishermen's Terminal Docks 3, 4 & 5 Fixed Pier Improvements
New Cruise Facility (Assumes 50% Tenant Cost Share)
Terminal 91 Uplands Development
Fishermen's Terminal Gateway Building
Fishermen's Terminal Maritime Innovation Center
Salmon Bay Marina Docks D & E Replacement
Pier 66 HVAC Systems Upgrade
Terminal 91 Berth 6 & 8 Redevelopment
Pier 66 Shorepower Waterfront Electrification
Harbor Mooring Dolphins
Small Capital/Fleet/Projects Underway
MD/EDD CIP Reserve

x
x
x
x
x
x
x
x
x
x
x
-

x
-

5
5
5
4
4
4
4
4
4
3
3
3

Q2 2021
Q3 2020
Q2 2020
Q2 2023
Q2 2023
Q3 2022
Q3 2022
Q3 2023
Q4 2021
2022
2022
2022

$22.8
$10.4
$2.5
$98.9
$38.8
$21.8
$10.1
$8.9
$1.8
$35.0
$16.9
$4.5
$35.4
$25.0

-

Total for Projects included in the 2019 - 2023 CIP

Environment
15%
Asset
Stewardship
36%

Financial
Sustainability
49%

$332.8

New Projects Proposed for 2020-2024 CIP:
T102 Harbor Island Marina E Dock
World Trade Center HVAC Replacement
P66 Bell Harbor Marina Pile Wraps
T46 Replace N Pier Structure
T91 Northwest Fender
T91 New Cruise Gangway
Jack Block Park Pier Replacement
New or Previously Deferred Projects Under $2 million*

x
x
x
x
x
x
-

-

x
-

3
3
3
2
2
2
2

2021
2021
2024
2024
2021
2022
2021

$3.9
$3.8
$3.5
$64.4
$6.6
$4.5
$2.9
$18.1

Total New Projects Proposed for 2020-2024 CIP

$107.5

Total Maritime/Economic Development CIP

$440.3

Chart does not include CIP Reserve/Small Projects/Projects
Underway or non MD/EDD Projects

Status: 1 = Prospective 2 = Pending Authorization 3 = Division Endorsed 4 = Design Authorized 5 = Construction Authorized
*See slide in appendix for more information

*Changes in status and estimated completion are bold

9

Changes to Estimates & Costs from 2019-2023 CIP
Asset
Financial Environme
Maritime & Economic Development Proposed 2020- Stewardshi
Sustainabili
nt &
Status 2018
p
ty
Community
2024 CIP

Status

Nov 2018
Completion

Estimated
Completion

Nov 18 Cost
$millions

Projects included in 2019-2023 CIP:
Terminal 117 Restoration

x

Bell Harbor Conference Center Modernization
Fishermen's Terminal Docks 3, 4 & 5 Fixed Pier Improvements

x
x

4

5

Q2 2020

Q2 2021

$17.9

$22.8

4

5

Q3 2020

Q3 2020

$9.9

$10.4

4

5

Q1 2021

Q2 2020

$6.1

$2.5

New Cruise Facility (Assumes 50% Tenant Cost Share) 1

x

2

4

Q2 2022

Q2 2023

$100.0

$98.9

Terminal 91 Uplands Development

x

3

4

Q3 2022

Q2 2023

$39.0

$38.8

Fishermen's Terminal Gateway Building

x

4

4

Q3 2021

Q3 2022

$23.0

$21.8

3

4

Q3 2021

Q3 2022

$10.5

$10.1

Fishermen's Terminal Maritime Innovation Center

x

1Includes electrification

2Does not include electrification
3Includes both projects under

$300K and projects near
completion like Shilshole Bay
Marina Restrooms

Salmon Bay Marina Docks D & E Replacement

x

2

4

Q3 2020

Q3 2023

$5.9

$8.9

Pier 66 HVAC Systems Upgrade

x

2

4

Q4 2021

Q4 2021

$2.9

$1.8

2

3

Q4 2021

2022

$35.0

$35.0

2

3

2022

2022

$30.0

$16.9

2

3

Q3 2020

2022

$3.6

$4.5

4Based on proposed CIP Reserve

Policy

Terminal 91 Berth 6 & 8 Redevelopment

2

x

Pier 66 Shorepower Waterfront Electrification

x

Harbor Mooring Dolphins

x

Small Capital/Fleet/Projects Underway3

-

-

-

$24.7

$35.4

MD/EDD CIP Reserve4

-

-

-

$40.0

$25.0

$348.5

$332.8

Total for Projects included in the 2019 - 2023 CIP

New Projects Proposed for 2020-2024 CIP:
T102 HIM E Dock

x

3

3

2021

-

$3.9

WTC HVAC Replacement

x

2

3

2021

-

$3.8

P66 BHM Pile Wraps

x

3

3

2024

-

$3.5

T46 Replace N Pier Structure

x

1

2

2024

-

$64.4

T91 Northwest Fender

x

2

2021

-

$6.6

2

2

2022

-

$4.5

1

2

2021

-

T91 New Cruise Gangway

x

JBP Pier Replacement
New or Previously Deferred Projects Under $2 million*

x
-

-

-

$2.9
$18.1

Total New Projects Proposed for 2020-2024 CIP

$107.5

Total Maritime/Economic Development CIP

$440.3

Status: 1 = Prospective 2 = Pending Authorization 3 = Division Endorsed 4 = Design Authorized 5 = Construction Authorized
*See slide in appendix for more information

10

Project Additions to 2020-2024 CIP
2020-2024
Cost
Estimate

Life/Safety
Related

Category

Project
Status

T46 Replace N Pier Structure

$64.4

No

Asset Stewardship

2

T91 Northwest Fender

$6.6

No

Asset Stewardship

2

T91 New Cruise Gangway

$4.5

No

Financial Sustainability

2

T102 Harbor Island Marina E Dock

$3.9

Yes

Asset Stewardship

3

World Trade Center HVAC Replacement

$3.8

No

Asset Stewardship

3

P66 Bell Harbor Marina Pile Wraps

$3.5

No

Asset Stewardship

3

Jack Block Park Pier Replacement

$2.9

Yes

Asset Stewardship

2

Capital Project ($ in millions)

*Only Projects >$2M shown totaling $89.6M. For full list of projects, see appendix
Status: 1 = Prospective 2 = Pending Authorization 3 = Division Endorsed 4 = Design Authorized 5 = Construction Authorized

11

Location of T46 North Pier Structure

North Pier of T46 on wood
pilings is approximately 700ft
by 100 feet

12

Five-Year Spend by Current Project Status
$s in millions
$200

$175.5

$180
$160
$140

$109.6

$120
$100
$80
$60

$58.4

$58.5
$38.3

$40
$20
$0

2020
2 - Pending Authorization

2021
3 - Division Endorsed

2022
4 - Design Authorized

2023
4 - Design Authorized (Cruise Terminal)

2024
5 - Construction Authorized

13

Cash Flow Adjusted Five-Year Spend
Maritime and Economic Development CIP Cash Flows ($ mil.)
200

158

150

100
92

82
58

50

50

0
2020

2021

2022

2023

2024

(50)

Maritime and Economic Development CIP

CIP Reserve

CIP Cash Flow Adjustment

Estimated Adjusted Cash Flow

14

Capital Delivery Improvement Initiative
• Examine all factors impacting Capital Delivery and Develop Road Map /
Recommendations for improvements.
• Establish:
o Senior Advisory Group: Internal/External membership (ERP)
o Executive Steering Group: Internal Cross Port membership
o Subject Matter Working Groups
o Implementation Teams

• Work Areas: Contracting, Human Resources, Innovation, Sustainability,
Delegation, Grants, Permitting, Safety, Coordination/Deconfliction,
Estimation, Cost Control, Oversight, Portfolio Management.
• Organize and Charter Workplan in 4th Quarter.

15

Summary
Recommendation: Continue implementing 5
Year Investment Plan initiated in 2019.
• A $440M CIP with focus in:
o Financial Sustainability ‒ 49%
o Asset Stewardship - 36%
o Environment - 15%

• Capital Plan takes into account:
o
o
o

Increased revenues
Prudent Financial Management
Retiring debt

16

Appendix

17

202
4

202
3

202
2

202
1

202
0

Maritime & Economic Development
Proposed 2020-2024 CIP

Est
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Env bility
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Maritime & Economic Development 2020-2024 CIP
$millions

Projects included in 2019-2023 CIP:
Terminal 117 Restoration
Bell Harbor Conference Center Modernization
Fishermen's Terminal Docks 3, 4 & 5 Fixed Pier Improvements
New Cruise Facility (Assumes 50% Tenant Cost Share)
Terminal 91 Uplands Development
Fishermen's Terminal Gateway Building
Fishermen's Terminal Maritime Innovation Center
Salmon Bay Marina Docks D & E Replacement
Pier 66 HVAC Systems Upgrade
Terminal 91 Berth 6 & 8 Redevelopment
Pier 66 Shorepower Waterfront Electrification
Harbor Mooring Dolphins
Small Capital/Fleet/Projects Underway
MD/EDD CIP Reserve

x
x
x
x
x
x
x
x
x
x
x
-

x
-

5
5
5
4
4
4
4
4
4
3
3
3

Q2 2021
Q3 2020
Q2 2020
Q2 2023
Q2 2023
Q3 2022
Q3 2022
Q3 2023
Q4 2021
2022
2022
2022

-

Total for Projects included in the 2019 - 2023 CIP

$11.4
$10.4
$2.5
$2.8
$0.8
$1.0
$0.7
$0.1
$0.8
$0.4
$0.7
$0.1
$17.5
$3.0

$10.6
$0.0

$0.3

$0.3

$0.3

$20.0
$4.8
$10.0
$5.0
$1.0
$1.0
$10.0
$13.2
$2.6
$5.6
$3.0

$72.0
$14.0
$10.0
$4.0
$4.0
$0.0
$24.6
$3.0
$1.8
$4.7
$5.5

$4.1
$14.0
$0.8
$0.5
$3.8

$4.2
$5.5

$3.4
$8.0

$22.8
$10.4
$2.5
$98.9
$38.8
$21.8
$10.1
$8.9
$1.8
$35.0
$16.9
$4.5
$35.4
$25.0

$52.1

$86.8

$143.9

$33.2

$17.0

$332.8

$0.1
$0.7
$0.2
$0.0
$3.6
$0.0
$0.3
$1.4

$3.6
$3.1
$0.7
$3.6
$3.0
$0.5
$2.6
$5.9

$0.3

$6.3

$22.9

$5.3

New Projects Proposed for 2020-2024 CIP:
T102 Harbor Island Marina E Dock
World Trade Center HVAC Replacement
P66 Bell Harbor Marina Pile Wraps
T46 Replace N Pier Structure
T91 Northwest Fender
T91 New Cruise Gangway
Jack Block Park Pier Replacement
New or Previously Deferred Projects Under $2 million*

x
x
x
x
x
x
-

-

x
-

3
3
3
2
2
2
2

2021
2021
2024
2024
2021
2022
2021

Total New Projects Proposed for 2020-2024 CIP

Total Maritime/Economic Development CIP

$2.6
$22.0

$0.0
$25.0

$4.0

$0.0

$13.8

$3.9
$3.8
$3.5
$64.4
$6.6
$4.5
$2.9
$18.1

$2.8

$0.3

$7.6

$31.6

$25.4

$21.3

$107.5

$58.4 $109.6 $175.5

$58.5

$38.3

$440.3

Status: 1 = Prospective 2 = Pending Authorization 3 = Division Endorsed 4 = Design Authorized 5 = Construction Authorized
*See slide in appendix for more information

*Changes in status and estimated completion are bold

18

New or Previously Deferred Projects under $2M
Project Name
Fishermen's Terminal C3 Building Roof Replace
Maritime Video Camera Project
Salmon Bay Marina Uplands Building
Shilshole Bay Marina Boat Wash
Shilshole Bay Marina Dock X Pier Replacement
Shilshole Bay Marina Fuel Float Rehabilitation
Terminal 106 Mooring Dolphins

Status
2
2
4
3
2
2
2

Total
686
1,800
1,500
954
1,670
470
100

Pier 91 West Slope Stabilization
Repurpose Pier 69 datacenter space
World Trade Center West Roof Replacement
Pier 66 Roof Upgrades
Pier 66 Anthony's Mechanical Roof Renewal

3
2
2
2
2

1,000
70
690
687
700

Central Waterfront Bridge Elevator Modernizations
World Trade Center Garage Elevator Mods
Pier 69 Clerestory and Skylight Replacement
Salmon Bay Fire Suppression
Terminal 91 Pier Stormwater Improvement Phase I
Pier 66 Fender Overhaul
Terminal 10 Mooring Dolphins

3
2
2
3
3
2
2

1,450
1,930
800
687
1,050
1,729
100

Total

• Project costs in $000s
• Only 2020 to 2024 project spending shown
• Some projects have spending before or
beyond five-year period
• Does not include Small Capital Projects
(projects < $300K in total cost)

18,073

19

Prospective Projects not currently funded in the CIP
Maritime Prospective Projects

$millions

Economic Development Prospective Projects

$millions

Fishermen's Terminal NW Dock West Improvements
New Marine Maintenance Shop
Waterfront Electrification

$41.8
$15.5
$13.0

Strategic Land Acquisition
Pier 69 HVAC Components Replace
Pier 69 Concrete Dock Rehabilitation

$30.0
$7.6
$7.5

Terminal 91 Pier Stormwater Improvement Phase II
Salmon Bay Marina Roof Replacements
Shilshole Bay Marina Dry Boat Moorage
Fishermen's Terminal C15 Building Roof Replacement
Pier 91 Slope Stabilization
Pier 66 Apron Cathodic Protect
Pier 66 BHM Wavebreak Protect
Terminal 91 Dredge Berth M
Terminal 91 Widen West Berth Access
Shilshole Bay Marina G Dock Rehabilitation
Shilshole Bay Marina Esplanade Upgrades
Shilshole Bay Marina W Dock Small Boat Floats

$10.0
$9.0
$8.0
$5.5
$5.0
$5.0
$4.7
$4.0
$3.0
$2.7
$1.7
$1.4

Pier 69 Restrooms Remodel
Pier 69 Front Windows & Doors Replacement
Pier 69 Underdock Utility Replacement

$2.4
$2.0
$1.7

Pier 69 Elevator Control Modernization
Pier 34 Roof Replacement
Pier 69 South Breezeway Metal Roof Replacement

$1.0
$0.8
$0.5

Pier 69 Commission Chambers AV System

$0.4

Fishermen's Terminal I-8 Building Roof Replacement
Shilshole Bay Marina Comporter Pier Rehabilitation
Fishermen's Terminal C15 Building Improvements

$1.0
$0.9
$0.9

Total Maritime Prospective Projects

Economic Development Prospective Projects

$53.9

Total of $187M proposed projects not
currently funded in CIP

$133.0

20