Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8c
ACTION ITEM
Date of Meeting
November 19, 2024
DATE: October 15, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Susie Archuleta, Sr. Real Estate Manager
Rod Jackson, Capital Project Manager
Jennifer Maietta, Director, Portfolio and Asset Management
SUBJECT: P-66 Grand Staircase Replacement (CIP# C801371) Design Funding Authorization
Request
Amount of this request:
$200,000
Previously Authorized
$300,000
Total estimated project cost:
$4,060,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to develop design documents,
execute consulting contracts, apply for permits, and prepare construction documents for the P66
Grand Staircase Replacement Project, for an estimated design cost of $200,000, bringing the
current authorization for this project from $300,000 to $500,000, resulting in a total estimated
project cost of $4,060,000.
EXECUTIVE SUMMARY
This project is Fast Tracked to extend the service life of the existing P66 Grand Staircase systems
prior to the FIFA Soccer tournament in June 2026 via stair tread, and paver replacement,
membrane replacement, including handrail and guardrail replacement based on most
recommendations contained in a third-party assessment study completed in April 2023.
The project is currently in the design/construction documentation phase, with construction
documents at the 30% stage of completion.
The Pier 66 facility is twenty-five years old and was built in 1995. To address Grand Staircase end
of life concerns, the facility, which consists of Anthony’s Restaurant, Bell Harbor International
Conference Center and the Bell Street Cruise Terminal, will be minimally impacted to extend the
life of the Grand staircase.
COMMISSION AGENDA – Action Item No. 8c Page 2 of 6
Meeting Date: November 19, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Additionally, due to funding priorities over the past few years, this Grand Staircase Replacement
project was deferred but is now ready to move forward due to the critical need and timeline to
be open by the 2026 FIFA Soccer event hosted by the City of Seattle.
JUSTIFICATION
The Pier 66 Grand Staircase Replacement project campus consists of Anthony’s Restaurant, the
Bell Harbor International Conference Center, the Bell Street Cruise Terminal, and the Bell Harbor
Marina Office all of which will be minimally impacted by this scope of work. The Grand Staircase
is an exterior concrete staircase originally constructed in 1995 that is heavily used by the general
public, cruise passengers and conference center attendees. The concrete stair treads and
concrete pavers are at the end of life as evidenced by extensive tread cracking and nose spalling.
Roughly half of this staircase is the roof above conditioned interior rooms in the cruise terminal
and conference center. The roof areas beneath the staircase are original and were excluded from
the 2022 Pier 66 roof replacement capital project. The staircase replacement project is an in-kind
system replacement with two main objectives: 1) eliminate the slip, trip and fall hazard caused
by the deteriorating concrete stair treads and 2) extend the waterproofing life of this remaining
original portion of the Pier 66 roof.
This P66 Grand Staircase Replacement 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) Use the Port’s influence as an institution to promote women and minority business
enterprise (WMBE) growth, small business growth, and workforce development.
(4) Be the greenest, and most energy-efficient port in North America.
Further, the project supports the following additional imperatives:
A. Reduce Fall Hazard and Improve Safety
Replace failing concrete with new to provide a safe means of pedestrian travel.
B. Protect Existing Assets
Ensure that the roof system beneath the stair maintains its watertight integrity.
C. Reduce Unplanned Maintenance Costs
Mitigate future costs related to staircase leaks, including mold and corrosion.
D. Mitigate Impacts to Existing Business Operations
Coordinate with Cruise, BHICC and Anthony’s around scheduled business events.
E. Employ Sustainable Means and Methods
Incorporate environmentally sustainable practices during construction where practical.
COMMISSION AGENDA – Action Item No. 8c Page 3 of 6
Meeting Date: November 19, 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 12% for the construction portion of the project.
DETAILS
The project team will:
Facilitate small business opportunities by managing the 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 P66 Grand Staircase Replacement project includes the evaluation and
design for the:
(1) New energy-efficient waterproof membrane system replacement and components.
(2) New stair treads, new pavers, new and refurbished handrailing with new down facing
LED lighting.
(3) Addition of benches or similar furniture at the stair landings to improve mobility equity.
(4) 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
Final design start
Commission construction authorization
Construction start
In-use date
Cost Breakdown
This Request
Total Project
Design
$200,000
$500,000
Construction
0
$2,917,000
Soft Costs
0
$643,000
Total Program
$0
$4,060,000*
* The current P66 Grand Staircase Replacement total estimated project cost is $4,060,000.
$8,338,000 was previously estimated under C801371 in the approved 2024 Capital Plan.
COMMISSION AGENDA – Action Item No. 8c Page 4 of 6
Meeting Date: November 19, 2024
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do nothing, Maintain the current state and delay upgrades to the staircase.
Maintenance costs of $5K annually (averaged over 12 months) will continue.
Cost Implications: $5K
Pros:
(1) Saves Port funding.
(2) Allows port to reallocate capital investment dollars.
Cons:
(1) Safety hazard to the public continues to increase as the staircase continues to
deteriorate.
(2) Does not advance efforts to achieve Century Agenda goals.
(3) Increases the chances that water infiltration at the stairs which will disrupt tenant
activities and damage the interior of the facility causing expensive repairs.
(4) The cost of a future stairwell project in the event of membrane or stair tread failure
would be the full cost of replacement ($4.06 million) plus escalation and the cumulative
ongoing expense costs.
(5) Risk cost of lost tenant space due to emergency repairs is unknown but likely would be
high.
(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 – Upgrade and replace only stair tread elements of the existing Grand Staircase
that will have a 30-year life.
Cost Implications: $3.07M
Pros:
(1) Advances Century Agenda goals.
(2) Upgrade and replace only stair tread project elements on the existing Grand Staircase
Replacement system (do nothing to the roof beneath the staircase) with applications
that will have a 30-year life.
(3) This system that will protect some of our assets and have a 30-year life span and serve
the Port and the tenants well.
(4) Helps to assure a stronger positive tenant experience and avoids potential safety
hazards.
(5) This project would provide for a warranted Grand Staircase Replacement that will
minimize the cost of repairs going forward for the foreseeable life of the Staircase.
(6) Design Bid Build delivery process is best to allows the Port to design one contract with
the lowest Bid price.
COMMISSION AGENDA – Action Item No. 8c Page 5 of 6
Meeting Date: November 19, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) This alternative uses $3.07M of capital funds that might otherwise be made available
for other uses on other projects.
(2) This project would not replace the roof beneath the staircase, which would ultimately
need to be addressed at some future date.
(3) This project would not provide the much-needed LED illuminated down facing railing
lighting.
(4) Longer delivery schedule is needed to work around cruise schedules.
This is not the recommended alternative.
Alternative 3 – Upgrade and replace all elements of the existing Grand Staircase tread that will
have a 30-year life.
Cost Implications: $4.06M
Pros:
(1) Advances the Century Agenda goals.
(2) Optimizes funding requirements.
(3) Minimize risk and improve public safety by replacing the failing concrete staircase with
new concrete treads and pavers at the landings.
(4) Upgrade and replace project elements on the existing staircase system with applications
that have a 30-year life.
(5) Design-Bid-Build delivery process is best to allows the Port to design elements into one
contract with the lowest bid price.
(6) Efficiencies are achieved by avoiding cruise operations so that cohesive construction
documents can be developed.
(7) Helps to assure a positive visitor experience and demonstrates the Port’s commitment
to maintaining its public facing asset.
(8) This project would provide much needed LED illuminated down facing railing lighting.
(9) This project would provide for a warranted staircase that will minimize the cost of
repairs going forward for the foreseeable life of the staircase.
Cons:
(1) This alternative uses $4.06M of capital funds that might otherwise be made available
for other uses on other projects.
(2) Construction period is within a portion of the cruise season which may restrict
construction progress and activities.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 8c Page 6 of 6
Meeting Date: November 19, 2024
Template revised June 27, 2019 (Diversity in Contracting).
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original CIP estimate (2023)
$8,338,000
$0
$8,338,000
Current 30% Estimate
$4,060,000
$0
$4,060,000
AUTHORIZATION
Previous authorizations
$300,000
$0
$300,000
Current request for authorization
$200,000
$0
$200,000
Total authorizations, including this request
$500,000
$0
$500,000
Remaining amount to be authorized
$3,560,000
$0
$3,560,000
Annual Budget Status and Source of Funds
The current P66 Grand Staircase Replacement total estimated project cost is $4,060,000. This
project as included in the approved 2024 Capital Plan under C801371 with a total estimated cost
of $8,338,000.
This project will be funded by the General Fund.
Financial Analysis and Summary
Project cost for analysis
$4,060,000
Business Unit (BU)
Portfolio Asset Management
Effect on business performance
(NOI after depreciation)
Annual depreciation will increase by approximately
$135K based on estimated 30-year service life, thereby
reducing the NOI by the same amount.
IRR/NPV (if relevant)
N/A, the NPV is the present value of the project cost.
CPE Impact
N/A
Future Revenues and Expenses (Total cost of ownership)
This replacement project will improve public safety, provide protection of Port assets and extend
the useful life of the staircase and roof beneath. Maintaining existing assets will preserve the
economic vitality of our operations and serve the Port, tenants, their customers well.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None