Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8j
ACTION ITEM
Date of Meeting
July 23, 2024
DATE : June 26, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Jessica Carlson, Sr. Real Estate Manager
Rod Jackson, Capital Project Manager
Jennifer Maietta, Director, Portfolio and Asset Management
SUBJECT: FT C15 Building Improvements (CIP# C801096) Design Funding Authorization
Amount of this request:
$500,000
Previously Authorized:
$300,000
Total estimated project cost:
$16,387,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to approve funding for the
development of design documents, to execute consulting contracts, apply for permits, and
prepare construction documents for the FT C15 Misc Improvements Project, for an estimated
design cost of $500,000; bringing the current authorization for this project from $300,000 to
$800,000, with the total estimated project cost being $16,387,000.
EXECUTIVE SUMMARY
This project will extend the service life of existing Fishermen’s Center Building (C15 Building)
envelope and roofing systems via repair, overlay or replacement, including the Divisions
environmental goals and strategies such as Energy/emissions, Stormwater, Materials, Waste
and Equity. The project is currently in the preliminary design/construction documentation
phase, with construction documents at the 30% stage of completion. Approval of this request
will increase authorized design phase funding from $300,000 to $800,000. The total estimated
budget project cost is $16,387,000.
The proposed C15 Building Improvement project is a Tier 2 project under the Sustainable
Evaluation Framework Policy Directive. The project team has explored various design features
to minimize impacts on the environment and will implement construction best management
practices. The permitting efforts are expected to consist of a building permit with over-the-
counter permits from the City of Seattle and will be obtained by the contractor. Possible WA
Commerce Grant applications and LED Lighting Rebates will also be reviewed and applied for
during this design effort.
COMMISSION AGENDA – Action Item No. 8j Page 2 of 7
Meeting Date: July 23, 2024
Template revised June 27, 2019 (Diversity in Contracting).
JUSTIFICATION
The C15 building, also known as The Fishermen’s Center Building, is the main building complex
visitors see when they enter Fishermen’s Terminal. The C15 Building has been home to many
small businesses over the years and is currently home to the Business Center offices, Chinooks
Restaurant, Seattle Fishermen’s Memorial, Quingdao Eagle Memorial Garden, Barber Shop, Bay
Cafe and Deli, Seafood Market and walk up, and the Highliner Restaurant. The C15 Building is
twenty-five years old and was built in 1995. This upgrade is to address miscellaneous problems
and to rectify past deficiencies at the facility. The C-15 Building roof, roof top vents, windows,
cladding, tower structure and mechanical well are ALL original to the facility. These various
elements of the building structure will reach the end of their useful life within 5 to 6 years if
these improvements are not completed now.
The Project will include additional Sustainable Evaluation Framework upgrades. These upgrades
include windows, siding, rooftop overlay, gutters and downspouts, rooftop solar, plaza LED
lighting, bike lockers including picnic tables and neon rope art to improve the aesthetics and
comfort while extending the life of the facility. Additionally, the roof repair project that was
separately scheduled will be accelerated by being combined with this project. This results in a
cost savings by being combined with the rooftop solar portion of the project and is now ready
to move forward with design addressing the roof’s critical condition sooner than later.
The Project supports all four of the Port’s Century Agenda objectives under the following
strategies:
1. Position the Puget Sound region as a premier international logistics hub.
2. Advance this region as a leading tourism destination and business gateway.
3. Advance this region as a leading tourism destination and business gateway.
4. Use the Port’s influence as an institution to promote women and minority business
enterprise (WMBE) growth, small business growth, and workforce development.
5. Be the greenest, and most energy-efficient port in North America.
Further, the project supports the following additional imperatives:
a. Protect Existing Assets - Ensure that it maintains its watertight integrity.
b. Reduce Unplanned Maintenance Costs - Mitigate future costs related to roof leaks,
including rot, mold, and corrosion.
c. Mitigate Impacts to Existing Business Operations - Coordinate with MInC- FT ADA, FT
Entrance pavement construction and scheduled around business events.
d. Employ Sustainable Means and Methods - Incorporate environmentally sustainable
practices during construction where practical.
COMMISSION AGENDA – Action Item No. 8j Page 3 of 7
Meeting Date: July 23, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Diversity in Contracting
Project staff along with the Diversity in Contracting Division have set a woman and minority
business enterprise (WMBE) aspirational goal of 18% for the construction portion of the
project.
DETAILS
The project team will:
Facilitate small business opportunities by managing this capital scope in one single
cohesive process.
Mitigate construction-driven business risk impacts by implementing project risk
management and phasing plans.
Complete the project safely on schedule and on budget.
Scope of Work
The scope of work for the Project includes the evaluation and design for the:
(1) Energy/Emissions to New energy-efficient roofing and cladding system replacements
and components.
(2) Use environmentally sustainable components and methods as appropriate,
such as: idling control measures, waste minimization, and selecting materials with
limited toxicity and greenhouse gas emissions.
Schedule
Activity
Commission design authorization
Design start
Commission construction authorization
Construction start
In-use date
Cost Breakdown
This Request
Total Project
Previous Seed money request
$0
$300,000
Design
$500,000
$500,000
Construction
$0
$15,587,000
Total
$500,000
$16,387,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do nothing, Maintain Status Quo. With this alternative, the existing facility will
exceed the limit of its service life and adversely affect the use of the C-15 Building assets.
COMMISSION AGENDA – Action Item No. 8j Page 4 of 7
Meeting Date: July 23, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Maintain the current state and delay upgrades to the roofs. Maintenance costs for the roof
leaks, gutter repairs, ceiling tile repair and replacement including various envelope leaks that
totaled $6.9K annually (averaged over 12 months) will continue.
Cost Implications: $6.9K
Pros:
(1) Saves Port funding.
(2) Allows port to reallocate capital investment dollars.
Cons:
(1) Does not advance efforts to achieve Century Agenda goals.
(2) Increases the chances that water infiltration will disrupt tenant activities and damage
the interior of the facility causing expensive repairs.
(3) Increase of probable construction costs in the future while emergency repair costs
continue to increase.
(4) The cost of a future roofing project in the event of roof failure would be the full cost of
replacement ($4.77 million) plus escalation and the cumulative ongoing expense costs.
Risk of additional costs for loss of usable tenant space due to emergency repairs.
(5) Safety of the tenant could be compromised due to the slip hazard to tenant and
employees.
(6) Indefinite deferral could also lead to the risk of catastrophic failure.
(7) Maintenance costs will continue.
This is not the recommended alternative.
Alternative 2 – Complete miscellaneous improvements at C-15 Building prior to the Sustainable
Design Assessment (SDA) effort. This is consistent with the Port’s business strategy to “Advance
this region as a leading tourism destination and business gateway”.
Upgrade and replace project elements on the existing building including Roof Top Vents,
Windows, cladding, Tower structure repairs or replacement including various envelope leaks
with miscellaneous improvement applications that have a 30-year life or more.
Cost Implications: $2.8M
Pros:
(1) Advances Century Agenda goals.
(2) Upgrade and replace capital project elements on the existing envelope systems with
various applications that have a 30-year life or more.
(3) These systems will protect our assets and have a 30-year life span or more and will
serve the Port and the tenants well.
(4) Helps to assure a stronger positive tenant experience and avoids potential safety
hazards.
(5) Provides protection of Port assets.
COMMISSION AGENDA – Action Item No. 8j Page 5 of 7
Meeting Date: July 23, 2024
Template revised June 27, 2019 (Diversity in Contracting).
(6) This project would provide for a warranted systems that will minimize the cost of
repairs going forward for the foreseeable life of the building.
(7) Design Bid Build delivery process is best to allows the Port to combine Capital and
Expense design into one contract with the lowest Bid price.
Cons:
(1) This alternative uses $2.8M of capital funds that might otherwise be made available
for other uses on other projects.
(2) Longer delivery schedule may be needed to work around other facility schedules.
This is not the recommended alternative.
Alternative 3 – Complete all miscellaneous improvements including roof improvements at the
C-15 Building before elements are at the end of its service life. This too is consistent with the
Port’s business strategy to “Advance this region as a leading tourism destination and business
gateway”.
Cost Implications: $16.38M
Pros:
(1) Advances Century Agenda goals.
(2) Upgrade and replace project envelope elements on the existing envelope systems
with applications that have a 30-year life or more.
(3) These systems will protect our assets and have a 30-year life span or more and serve
the Port and the tenants well.
(4) Repairing and replacing envelope elements will provide the lowest lifecycle cost.
(5) Helps to assure a stronger positive tenant experience and avoids potential safety
hazards.
(6) Provides protection of Port assets.
(7) This project would provide for a warranted systems will minimize the cost of repairs
going forward for the foreseeable life of the building.
(8) Design Bid Build delivery process is best to allows the Port to design the contract with
the lowest Bid price.
Cons:
(1) This alternative uses $16.38 million of capital funds that might otherwise be made
available for other uses on other projects.
(2) Longer delivery schedule may be needed to work around other facility schedules.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 8j Page 6 of 7
Meeting Date: July 23, 2024
Template revised June 27, 2019 (Diversity in Contracting).
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$2,900,000
$0
$2,900,000
Current change – SEAC approved on 5/31/24
$13,487,000
0
$13,487,000
Revised estimate
$16,387,000
0
$16,387,000
AUTHORIZATION
Previous authorizations
$300,000
0
$300,000
Current request for authorization
$500,000
0
$500,000
Total authorizations, including this request
$800,000
0
$800,000
Remaining amount to be authorized
$15,587,000
$0
$15,587,000
Annual Budget Status and Source of Funds
The current estimated total project cost of $16,387,000 supersedes the $2,881,000 under CIP#
C801096 as shown in the 2024 Plan of Finance. The initial 2023 CIP’s scope of work has been
expanded to include building envelope upgrades as part of the Sustainable Evaluation
Framework effort approved 5/31/2024 by the SEAC Committee and is reflected in this request
for approval of funds.
This project is funded by the Tax Levy.
Financial Analysis and Summary
Project cost for analysis
$16,387,000
Business Unit (BU)
Portfolio Management
Effect on business performance
(NOI after depreciation)
Annual depreciation will increase by approximately
$546K based on estimated 30-year service life, thereby
reducing the NOI by the same amount. The project will
preserve approximately $1.2 million of annual revenue
upon completion.
IRR/NPV (if relevant)
No incremental revenue. The NPV is the present value of
the project cost.
CPE Impact
N/A
Future Revenues and Expenses (Total cost of ownership)
This upgrade will provide protection of Port assets and extend their useful life. Maintaining
existing assets will preserve the economic vitality of our operations and serve the Port, tenants,
their customers well.
COMMISSION AGENDA – Action Item No. 8j Page 7 of 7
Meeting Date: July 23, 2024
Template revised June 27, 2019 (Diversity in Contracting).
ATTACHMENTS TO THIS REQUEST
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None