Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8d
ACTION ITEM
Date of Meeting
December 8, 2020
DATE: November 30, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Nick Milos, Manager, Corporate Facilities
Fred Chou, Capital Program Leader
SUBJECT: P69 Underdock Utility Replacement (CIP #C801102)
Amount of this request:
$85,000
Total estimated project cost:
$2,930,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to authorize $85,000 in design and
permitting phase funding for the proposed underdock utility replacement at Pier 69. This funding
request would increase the total project authorization to-date to $310,000, out of a preliminarily
estimated total project cost of $2,930,000.
EXECUTIVE SUMMARY
Underdock and associated on-dock utilities such as domestic water, fire protection water,
electrical power/shore power, communications, and sanitary sewer systems at Pier 69 are vital
to building and dock operations for both the Port and our tenants. Most of these utilities are
approaching 30 years of age, well exceeding the typical 20-year service life. This project would
replace the aging utilities. The replacement systems would be designed to provide reliable
services for the next 30 years.
JUSTIFICATION
This project is an asset stewardship and revenue preservation project which would replace this
essential utility infrastructure. The project team is prepared to explore design alternatives to
minimize impacts on the environment and would select durable materials to maximize the
service life of the systems.
The project supports the Port’s Century Agenda Goal 3, Responsibly Invest in the Economic
Growth of the Region and all its Communities and Strategy 6, Be a Highly Effective Public Agency
(New Goal).
COMMISSION AGENDA – Action Item No. 8d Page 2 of 5
Meeting Date: December 8, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Diversity in Contracting
The Port will be self-performing the design. WMBE aspirational goals for construction will be
established during the design phase.
DETAILS
The project would replace aged underdock and associated on-dock utilities at Pier 69. These
utilities include domestic water, fire protection water, electrical power/shore power,
communications, and sanitary sewer systems. Most of these utilities are close to 30 years in age
and have exceeded their 20-year design lives. The Port’s Engineering Department conducted a
comprehensive assessment of these utilities in 2019. The assessment noted that, while some
utilities have been partially replaced in various locations over the years by Marine Maintenance,
most of the utilities, associated supports/connections, and other related equipment are in poor
or very poor condition and should be replaced.
The Port’s Engineering Department has completed the preliminary design. During the final design
phase additional focus will be made to carefully select durable materials that can withstand the
harsh underdock environment over time and minimize the total cost of ownership. It is expected
the design life for the replacement system would be at a minimum of 30 years and with some
components up to 50 years.
Most of the utility replacement work will not be subject to in-water permitting; however, the
project is within shoreline jurisdiction and will require a shoreline exemption from the city of
Seattle. A segment of the sanitary sewer system will require additional in-water environmental
permitting approvals. It is expected that the permit approval duration may take longer; however,
staff will explore construction phasing opportunities during final design to address possible
longer permit approval duration.
Scope of Work
The following are the major elements of the underdock utility replacement project and most of
the work will be subject to tidal constraints and challenging underdock conditions.
• Replace underdock electrical power feeds/conduits to the building and bullrails, and
some above dock panel/switches and transformer associated with the underdock
system.
• Replace underdock potable water and fire protection mains serving the building and the
bullrails, including associated valves, meters and enclosures.
• Replace underdock sanitary sewer piping.
• Replace underdock communications conduits/cabling.
• Replace associated underdock utility support infrastructure and anchorages.
• Remove abandoned underdock utilities.
COMMISSION AGENDA – Action Item No. 8d Page 3 of 5
Meeting Date: December 8, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Schedule
Activity
2020 Quarter 4
2020 Quarter 4
2021 Quarter 2
2021 Quarter 3
2022 Quarter 1/2
Cost Breakdown
This Request
Total Project
Design
$85,000
$310,000
Construction
0
$2,620,000
Total
$85,000
$2,930,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do nothing – continue to repair underdock and related utilities when problems
occur.
Pros:
(1) Would preserve capital capacity for other priority projects and financial initiatives
(2) Would avoid temporary construction impacts to Pier 69 and tenant operations
Cons:
(1) Failures would continue to occur – the disruption to operations and costs of emergency
repairs would be significant to both the Port and our tenants.
This is not the recommended alternative.
Alternative 2 – Replace the underdock and related utilities in a phased approach based on
severity of conditions.
Pros:
(1) Would preserve some capital capacity for other priority projects and financial initiatives.
(2) Would avoid temporary construction impacts to portions of Pier 69 and tenant
operations.
Cons:
(1) Failures would continue to occur – the disruption to operations and costs of emergency
repairs would be significant to both the Port and our tenants.
(2) Completing the project in phases would result in higher combined project costs.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. 8d Page 4 of 5
Meeting Date: December 8, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Alternative 3 – Replace the underdock and related utilities based on Port of Seattle Engineering
Department’s recommendations.
Pros:
(1) Would proactively replace the end-of-life underdock and associated utilities and
preserve leasehold revenue.
(2) Would significantly decrease the risk of utility failures and the associated disruption to
operations.
(3) Would improve asset stewardship by capitalizing on the opportunity to use more
durable materials, thereby increasing the service life of the new systems.
Cons:
(1) Would require investment of capital funds.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$2,930,000
$0
$2,930,000
AUTHORIZATION
Previous authorizations
$225,000
0
$225,000
Current request for authorization
$85,000
0
$85,000
Total authorizations, including this request
$310,000
0
$310,000
Remaining amount to be authorized
$2,620,000
$0
$2,620,000
Annual Budget Status and Source of Funds
The P69 Underdock Utilities Replacement project is included in the 2021 Plan of Finance with an
estimated total cost of $2.9M.
This project will be funded by the General Fund.
Financial Analysis and Summary
Project cost for analysis
$2,930,000
Business Unit (BU)
P69 Facilities
Effect on business performance
(NOI after depreciation)
• No incremental revenue or cost-savings
associated with this project
• Annual depreciation expense is estimated to
increase by approximately $98k per year.
IRR/NPV (if relevant)
N/A
CPE Impact
N/A
COMMISSION AGENDA – Action Item No. 8d Page 5 of 5
Meeting Date: December 8, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Future Revenues and Expenses (Total cost of ownership)
Future expenses include periodic inspection and maintenance costs as needed throughout the
duration of the asset life.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None.