Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8e
ACTION ITEM
Date of Meeting
December 10, 2024
DATE: November 8, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Stephanie Jones Stebbins, Managing Director Maritime
Arthur Kim, Capital Project Manager
SUBJECT: West Waterway High Spots Dredging – Design and Pre-construction Services
Authorization
Amount of this request:
$300,000
Total project cost:
$7,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to approve design authorization
to complete design development and permitting for the West Waterway High Spots Dredging
project (N99969). The total request for this action is $300,000 for a total design authorization of
$400,000 The estimated total project cost is $7M.
EXECUTIVE SUMMARY
The Puget Sound Pilots can only navigate the largest container ships into Terminal 5 (T5) during
specific windows due to high spots in the Duwamish West Waterway’s federal navigation
channel. This project is driven by the following objectives:
1. Remove approximately 20,000 cubic yards of material in designated high spots to a
depth of -50 feet mean lower low water.
2. Address the urgent needs of the high spots 17+ months ahead of the West Waterway
Deepening Project.
This project will be delivered through the Major Construction Unit Price Procurement
Methodology. This alternate delivery method was selected to ensure the construction
completion by Q1 of 2026. The project will return to Commission for Construction
Authorization.
JUSTIFICATION
Due to multiple high spots in the federal navigation channel between T5 and Harbor Island (The
West Waterway), the Puget Sound Pilots must wait for specific windows to safely navigate
COMMISSION AGENDA – Action Item No. 8e Page 2 of 4
Meeting Date: December 10, 2024
Template revised June 27, 2019 (Diversity in Contracting).
larger container vessels to T5 which can cause delays to operations and last-minute shuffling of
resources.
Though the West Waterway Deepening Project will address these high spots, construction is
not scheduled to start until Q3 of 2027 and complete in Q1 of 2029. The high spots need to be
addressed sooner to ensure the Port of Seattle remains competitive in the regional shipping
market.
Diversity in Contracting
This project will utilize consultants on an existing IDIQ to develop design. The project team will
work with the Diversity in Contracting Department to determine participation opportunities
and appropriate aspirational goals for WMBE in the construction phase of the project.
DETAILS
Scope of Work
This project will utilize the Major Construction Unit Price Contract alternative delivery method.
Pursuing this delivery will allow for early procurement of the contractor and enables
construction to begin in Q4 of 2025. Though other highs spots in the navigation channel were
identified (A, D, & E), the Puget Sound Pilots did not identify them as a priority and not included
in this project.
The scope of this project includes the following elements:
(1) Maintenance dredged the designated high spots at locations B & C to a depth of -50’
mean lower low water as recommended by the Puget Sound Pilots.
(2) Dispose of all sediment at an approved uplands facility.
Schedule
A design consultant will lead the design, and this project anticipates construction across one in-
water work window (2025-2026).
Activity
Commission design authorization
2024 Quarter 4
Design start
2025 Quarter 1
Commission construction authorization
2025 Quarter 1
Construction start
2025 Quarter 4
In-use date
2026 Quarter 1
This Request
Total Project
Design
$300,000
$400,000
Construction
$0
$6,600,000
Total
$300,000
$7,000,000
COMMISSION AGENDA – Action Item No. 8e Page 3 of 4
Meeting Date: December 10, 2024
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Wait for the West Waterway Deepening Project
Cost Implications: No additional expenses spent beyond current West Waterway Deepening
Project.
Pros:
(1) Retain Port resources for other priority projects and financial initiatives.
(2) Defer temporary construction impacts.
Cons:
(1) The Puget Sound Pilots will continue to face delays in navigating the largest ships into
T5.
(2) Container vessel operators may choose other Ports due to restrictions on vessel size.
This is not the recommended alternative.
Alternative 2 – Maintenance Dredge Designated High Spots A, B, C, D, E.
Cost Implications: Allocation of $10,000,000 in expense funds.
Pros:
(1) Clears all the major high spots including the lesser priority ones.
Cons:
(1) High costs to dredge areas that includes non-priority high spots in the federal
navigation channel.
(2) Temporary construction impacts to operations.
This is not the recommended alternative.
Alternative 3 – Maintenance Dredge Designated High Spots B & C.
Cost Implications: Allocation of $7,000,000 in expense funds.
Pros:
(1) Addresses the highest priorities high spots identified by the Puget Sound Pilots.
Cons:
(1) Requires allocation of resources that could be used to fund other Port projects.
(2) Temporary construction impacts to operations.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$0
$7,000,000
$7,000,000
COMMISSION AGENDA – Action Item No. 8e Page 4 of 4
Meeting Date: December 10, 2024
Template revised June 27, 2019 (Diversity in Contracting).
AUTHORIZATION
Previous authorizations
$0
$100,000
$100,000
Current request for authorization
$0
$300,000
$300,000
Total authorizations, including this request
$0
$400,000
$400,000
Remaining amount to be authorized
$0
$6,600,000
$6,600,000
Annual Budget Status and Source of Funds
As the Homeport, POS may use Harbor Maintenance Tax (HMT) funds for this project. This
decision is pending a NWSA Managing Member resolution for joint use of HMT funds across
both North and South Harbors and eligibility of this project to use the funds. In the event HMT
funds are not used, the project will be funded by the tax levy or general fund as a homeport
expense.
Financial Analysis and Summary
Project cost for analysis
$7,000,000
Business Unit (BU)
Joint Venture (JV)
Effect on business performance
(NOI after depreciation)
This project will increase non-operational expenses in
2025 and 2026.
IRR/NPV (if relevant)
NA
CPE Impact
NA
Future Revenues and Expenses (Total cost of ownership)
Though the Port will pay the initial costs to maintenance dredge the high spots, future
maintenance dredging will the responsibility of the United States Army Corps of Engineers
(USACE) once the West Waterway Deepening Project is completed.
ADDITIONAL BACKGROUND
The West Waterway Deepening Project led by the USACE is not scheduled to begin construction
until Q3 of 2027 with a substantial completion date of Q1 2029. This project will address the
urgent needs of the high spots.
ATTACHMENTS TO THIS REQUEST
(1) Diagram of high spots locations
(2) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
N/A