Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6e
ACTION ITEM
Date of Meeting
March 10, 2020
DATE: January 29, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Skip Himes, Director, Marine Maintenance
Tin Nguyen, Sr. Manager, Marine Maintenance
Robert Hoyman, Project Manager, Marine Maintenance
SUBJECT: SBM Electric Vehicle Charging Stations and Electrical Service Upgrade (WP# 105789)
Amount of this request:
$440,000
Estimated project cost increase:
$140,000
ACTION REQUESTED
Request Commission ratification of action already taken to use port crews to purchase and install
new electric vehicle charging stations at Shilshole Bay Marina and perform related electrical
infrastructure upgrades in an amount not to exceed $440,000.
EXECUTIVE SUMMARY
In July 2018, an original budget of $250,000 was approved and later amended in October 2019
to $300,000 for the purchase and installation of the Electric Vehicle Charging Stations (EVCS) at
Shilshole Bay Marina (SBM). During design development, it was determined that the existing
Substations No. 5 & 8 breakers were sufficient to support the initial installations, but additional
upgrades to the substations were required to support future growth of up to twenty EVCS at each
location. As such, improvements and expansion to the electrical service at Substation No. 5 & 8
were added to the original project scope. At the time, our project team believed project
contingencies would accommodate the increased scope of work and additional associated costs.
This was not the case. The total cost of the projects is $440,000, or $140,000 more than
estimated. Because the original estimate did not exceed $300,000, commission authorization
was not previously requested.
BACKGROUND
In early October 2019, nearing completion of construction, it was realized by our project team
that the costs associated with the Electrical Service Upgrades would exceed the approved budget.
Keeping with our EX-2 Delegation of Authority, Marine Maintenance subsequently requested
approval for an additional $50,000 to bring the total project value to $300,000. By the end of
October 2019, it became evident that the additional funding was insufficient, and our project
team reached out to Accounting & Financial Reporting (AFR) for their assistance in running
detailed cost queries reflecting both actual cost to date and remaining expected commitment
COMMISSION AGENDA – Action Item No. _6e___ Page 2 of 5
Meeting Date: March 10, 2020
Template revised June 27, 2019 (Diversity in Contracting).
cost from our financial system, PeopleSoft. The ability to work between numerous systems to
obtain actual cost to date, remaining commitments (expected future invoices), and planned
future cost to project an estimated at completion (EAC) cost is especially difficult for small works
construction projects which have an aggressive schedule and restrictive project budgets, but are
faced with the same systematic lag times in having actual cost data. As internal labor costs,
department allocated overhead, vendor invoices, and P-Card transactions were being reconciled
throughout November and December, it was realized that costs had further exceeded $300,000
and were approaching $440,000.
A thorough review of lessons learned, and final scope analysis revealed that multiple mistakes
had been made on the project:
1. Marine Maintenance should have created two separate projects to appropriately capture
both the upgrades to the existing electrical service (Substation No. 5 & 8) and the
development of new Electric Vehicle Charging Stations. Although these two work projects
are related, they are distinctly two separate assets which would justify two separate work
projects and authorizations – the two systems have differing useful lives and the
substation infrastructure supports broader electrical needs at SBM. The best approach
from the onset should have been a recognition of one major works CIP of $440,000 going
for Commission authorization in July of 2018. Within this CIP, the two work projects would
capture costs of the two separate assets with differing depreciation schedules.
2. During construction Port crafts were called upon on more than one occasion to respond
to unexpected utility failures. Also, equipment failures during construction halted
operations on two occasions. Marine Maintenance did not have staffing capacity or
available equipment to maintain continuity on this project. This resulted in delays and
added overhead costs. In hindsight, this work may have been better suited for contracted
services.
3. In planning for this work in early 2018, our team underestimated the cost of the increased
project scope. This is evident in our new proposed Commission ask of $440,000 versus an
approved budget of $300,000. We are now in a difficult position of asking for
authorization on money already spent.
The above lessons learned were documented on an internal memorandum dated November 25
th
,
2019 to Maritime Managing Director Stephanie Jones-Stebbins along with recommendations for
process improvements for our team to implement in developing further transparency and
avoiding similar issues with our project delivery process moving forward.
The cost overruns noted above prevented Marine Maintenance from paying numerous
outstanding invoices to our valued equipment vendors and material suppliers. To ensure timely
payment, a retroactive work project SBM Electrical Service Upgrade (WP 106074) was created to
capture and transfer costs associated with the electrical infrastructure improvements to the
substations. A temporary amendment was also created to increase the original budget on project
SBM Electric Vehicle Charging Stations (WP 105789) to accommodate the additional costs.
COMMISSION AGENDA – Action Item No. _6e___ Page 3 of 5
Meeting Date: March 10, 2020
Template revised June 27, 2019 (Diversity in Contracting).
JUSTIFICATION
Since opening in 1962, Shilshole Bay Marina (SBM) has undergone many changes, including a
major renovation in 2006, and is now one of the most modern marinas on the West Coast. The
Marina design consists of 1,411 slips and is at 95% of full occupancy. SBM is home to
approximately six-hundred live aboard residents who occupy 350 slips. Marina management
embraces continuous improvement and is always evolving business and operations to meet
changing needs of users and residents. To help the Port of Seattle become the greenest Port in
North America, SBM staff proposes a scalable investment in electric vehicle charging stations to
meet existing and future demand for clean transportation.
Installation of EVCS at SBM addresses tenant demand, supports the Port’s Century Agenda and
GHG reduction goals, and provides an improved amenity for marina residents, visitors, and the
public. The existing EV charging at SBM was unmetered, unregulated, and potentially unsafe:
tenants connected extension cords to available outlets in SBM’s parking lot. Installation of
modern level 2 charging stations provides the following benefits:
1. Safe, reliable, convenient access to EV charging
2. Support for current and future tenant, public and Port EV use while advancing Port goals
to improve air quality and reduce emissions
3. The ability to track electricity and recover costs associated with power distribution
Abundant, affordable and convenient access to EV charging infrastructure is a critical part of the
transition to zero-emission transportation. A recent SBM-wide survey indicated that of the four
hundred forty-seven respondents, eight live aboard residents own EVs, seventeen moorage users
own EVs, and sixty-three respondents will consider purchasing an EV in the near future.
Approximately one third of Shilshole customers responded to this survey.
Diversity in Contracting
There are no opportunities to include WMBE aspirational goals and inclusion plans in this request
as construction has been completed using Port Crews.
DETAILS
The project purchased and installed new Electric Vehicle Charging Stations at Shilshole Bay
Marina and upgraded electrical infrastructure to support future growth.
Scope of Work
The scope of work included thirty-day energy analysis of the two substations identified to feed
the proposed SBM EVCS. This analysis was used to confirm power availability during peak
operational periods. Following this study Port Engineering developed a complete design which
was to include improvements to the power distribution equipment and inclusion of a marine
COMMISSION AGENDA – Action Item No. _6e___ Page 4 of 5
Meeting Date: March 10, 2020
Template revised June 27, 2019 (Diversity in Contracting).
grade step-down transformer to provide 208V power distribution. Other criteria for the design
included branch circuitry for future expansion including: spare raceways from the vaults to
handhold locations, oversized vaults to capture all the spare raceways from the substations and
space for future expansion, oversized marine grade panels providing room for up to twenty
charging stations at each location and four extra spare circuits. Equipment purchased included
the upgrades to the electrical service, coupled with for (4) Duel Charging pedestals with charging
stations for a total of eight (8) charging stations, branch cabling, handholds and the necessary
208V 30A GFIC Breakers.
Marine Maintenance Crafts performed the installations including all trenching and installations
of reinforced duct bank, grounding, curb installations, paving, sidewalk and pad installations,
electrical work, signage and striping.
Schedule
Design for the EVCS and Electrical Service Upgrades was completed and permitted for in April of
2019. Equipment was procured, and construction began June of 2019. Underground utility work
commenced in July and was completed October of 2019. Both the installation of the SBM EVCS
and Electrical Service Upgrades were completed in November 2019.
Activity
N/A
2018 Quarter 3
N/A
2019 Quarter 3
2019 Quarter 4
Cost Breakdown
This Request
Total Project
Design
$25,000
$25,000
Construction
$415,000
$415,000
Total
$440,000
$440,000
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$250,000
$0
$250,000
Previous changes – net
$50,000
0
$50,000
Current change
$140,000
0
$140,000
Revised estimate
$440,000
0
$440,000
AUTHORIZATION
Previous authorizations
$0
0
0
COMMISSION AGENDA – Action Item No. _6e___ Page 5 of 5
Meeting Date: March 10, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Current request for authorization
$440,000
0
$440,000
Total authorizations, including this request
$440,000
0
$440,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
Additional funding needed for this project was offset by lower than expected spending on other
small capital and fleet projects.
This project is funded by the General Fund.
Financial Analysis and Summary
Project cost for analysis
$440,000
Business Unit (BU)
Recreation Boating
Effect on business performance
(NOI after depreciation)
The project is estimated to increase annual depreciation
expense by approximately $20K.
IRR/NPV (if relevant)
N/A
CPE Impact
N/A
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None