Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8f
ACTION ITEM
Date of Meeting
November 12, 2024
DATE : October 21, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Julie Yun, Capital Project Manager
Marie Ellingson, Cruise Ops & Business Development Manager
Linda Springmann, Director of Cruise Ops & Maritime Marketing
SUBJECT: Pier 66 Fender Rehabilitation – Additional Funding Request (CIP #C800674)
Amount of this request:
$800,000
Total estimated project cost:
$8,780,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to approve additional funding to
accommodate barge impact response scope added to the original scope of the Pier 66 Fender
Rehabilitation project. The total request for this action is $800,000 for a project total
authorization of $8,780,000.
EXECUTIVE SUMMARY
The original scope of the Pier 66 Fender Rehabilitation project addresses the need for asset and
revenue preservation for multi-vessel use of the west apron at Pier 66. The fender system was
originally installed in 1998 and has since deteriorated significantly due to heavy use and
exposure to the elements. Rehabilitation of deteriorated elements (twenty-six fender panel
assemblies and associated cathodic protection; and six foam-filled floating fenders) were
approved to proceed with construction in November 2022, and has since completed the first of
two permitted work windows.
In November 2023, the south side of Pier 66 was impacted by a runaway barge owned by a
private external company. The barge broke loose from its mooring at the north end of Harbor
Island and traveled across Elliott Bay to make impact with Pier 66 at the Central Waterfront.
The impact of the barge collision was absorbed by the fender panels at the south end of Pier 66,
preventing any loss of life or irreparable damage to the facility (or Central Waterfront at large).
The damages sustained at Pier 66 included a sheared bollard, bull rail concrete damage,
damaged elements at south end fender panel assemblies, and damage to the fender pin piles
supporting the fender panel assemblies. The project team responded to the incident by
immediately assessing the damage, designing appropriate replacement and repair solutions,
and developing a construction plan to rehabilitate the impacted elements. Project staff and
COMMISSION AGENDA – Action Item No. 8f Page 2 of 5
Meeting Date: November 12, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Cruise sponsors were able to maximize efficiencies by pursuing a path forward that included
the barge impact restoration scope to the original Pier 66 Fender Rehabilitation project.
Incorporating the additional scope to the original project allowed efficiencies in that the
damaged elements would be fully restored on an expedited timeline while using existing
permits and resources already mobilized during Phase 2 construction (vs. pursuing an
independent capital project to restore damages). In order to capitalize on this opportunity, the
project team worked swiftly to process immediate procurement needs by utilizing the original
construction contingency.
This additional funding request includes construction- and soft costs associated with the barge
impact scope, as well as additional tribal negotiation costs associated with overall project
impacts during the tribal fishery.
JUSTIFICATION
Upon barge impact in November 2023, the Port Engineering team performed a preliminary
visual inspection of the damages incurred at the south end of Pier 66. The preliminary findings
were further investigated, and replacement/rehabilitation methods assessed to restore full
functionality of the impacted area of the pier. The damaged elements and restoration path
forward are as follows:
1. Bull rail concrete damage: perform concrete repairs and recoat.
2. Sheared bollard: no action to replace missing bollard as it was minimally used, per Port
Facilities.
3. Damage to fender assemblies at three southernmost fender panels: replace two of the
three fender panel assemblies impacted.
4. Impact to fender pin piles at three southernmost fender panels: replace pin piles
supporting southernmost two of the three fender panel assemblies impacted.
5. Damaged steel waler on pier: rehabilitate damaged steel elements to restore original
functionality.
This funding request includes additional design fee, staff coordination time, direct construction
cost, sales tax and contingency applicable to restoring damages due to the Pier 66 barge
collision.
Additionally, this request also accommodates tribal negotiation costs associated with overall
project impact during the tribal fishery. The tribal negotiation in this project included
temporary crane mobilization at Bell Harbor Marina during Phase 1 to assist tribal fishing; and
removal of large marine debris impacting tribal fishing offshore of Terminal 46. The marine
debris removed consisted of several creosote-treated piling bound together with cables and a
large concrete mass that posed a consistent snag risk to tribal nets in the past.
COMMISSION AGENDA – Action Item No. 8f Page 3 of 5
Meeting Date: November 12, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Diversity in Contracting
This project has an established WMBE utilization goal of 10% for IDIQ design consultant support
and 7% for general contractor support through execution. Both contracts are on track to meet
their respective WMBE goals by end of project.
DETAILS
Scope of Work
The original project scope included the following elements:
(1) Replacing all timber panels with recycled reinforced plastic lumber panels
(2) Replacing six fender camels and attachment hardware
(3) Replacing/rehabilitating damaged steel components
(4) Replacing/rehabilitating rubber energy absorbers
(5) Anode replacement on sleeve elements
The additional scope of work due to barge impact includes the following elements:
(1) Fabricate and replace 2 fender panel assemblies at south end of Pier 66
(2) Restore bullrail concrete and coating damage
(3) Restore steel waler on pier
(4) Remove and replace existing 4 pin piles supporting fender panel assemblies at south
end of Pier 66
Schedule
Construction phasing is coordinated within the permitted in-water work windows and outside
Cruise season. The project has completed Phase 1 and is currently pending Phase 2 start.
o Phase 1: November 2023 to February 2024
o Phase 2: November 2024 to February 2025
Activity
Commission design authorization
Design start
Commission construction authorization
Construction start
In-use date
Cost Breakdown
This Request
Total Project
Design
$100,000
Construction
$700,000
Total
$800,000
COMMISSION AGENDA – Action Item No. 8f Page 4 of 5
Meeting Date: November 12, 2024
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Maintain current funding authorization.
Cost Implications: No additional capital spent beyond current authorization.
Pros:
(1) Retain Port capital for other priority projects and financial initiatives.
Cons:
(1) Limited construction contingency through Phase 2.
(2) Risk of direct pier damage in the case of a future collision without restored fender
system in place to absorb the impact.
(3) Potential impact to revenue due to limited vessel mooring capability on south end
without restoring the damaged elements.
(4) Financial risk of market escalation and additional soft costs (permitting, contracting) to
perform barge impact restoration scope as dedicated future capital project.
This is not the recommended alternative.
Alternative 2 – Approve additional funding request and proceed with Phase 2 project
construction as recommended.
Cost Implications: Requires allocation of $800,000 in the Capital Plan.
Pros:
(1) Replenish construction contingency that was used to process barge impact scope.
(2) Restore full structural capacity at south end of Pier 66 to sustain future unforeseen
impact loads as well as restore vessel mooring capability.
(3) Avoid initiating a new capital project to restore barge impact damages by utilizing the
original project’s existing permits and Phase 2 construction mobilization.
(4) No additional construction duration will be added to the original project to complete
the additional barge impact restoration scope of work.
Cons:
(1) Upfront capital cost.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$5,000,000
$0
$5,000,000
Previous changes – net
$2,980,000
0
$2,980,000
Current change
$800,000
0
$800,000
Revised estimate
$8,780,000
0
$8,780,000
COMMISSION AGENDA – Action Item No. 8f Page 5 of 5
Meeting Date: November 12, 2024
Template revised June 27, 2019 (Diversity in Contracting).
AUTHORIZATION
Previous authorizations
$7,980,000
0
$7,980,000
Current request for authorization
$800,000
0
$800,000
Total authorizations, including this request
$8,780,000
0
$8,780,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project is included in 2025 plan of finance under committed CIP #C800674 in the amount
of $7,980,000. The current project estimate is $8,780,000.
This project will be funded from the general fund.
Financial Analysis and Summary
Project cost for analysis
$8,780,000
Business Unit (BU)
Cruise Operations
Effect on business performance
(NOI after depreciation)
No incremental revenue associated with this project.
Estimated annual depreciation of $350K-$585K.
IRR/NPV (if relevant)
N/A
CPE Impact
N/A
Future Revenues and Expenses (Total cost of ownership)
Not completing this work and maintaining the assets in good repair would be a risk of negative
impacts to business operations that could result in lost revenue.
ADDITIONAL BACKGROUND
The Port’s Risk Management Department is currently in negotiation with the barge company for
recovery of costs incurred to restore barge impact damages at Pier. Actual settlement for barge
impact restoration costs will be agreed and finalized upon reaching substantial completion.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
November 8, 2022 – The Commission authorized Construction funding in the amount of
$7,270,000 for a total authorization of 7,980,000.
October 26, 2021 – The Commission authorized Design funding in the amount of $550,000
for a total authorization of $710,000.