Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8k
ACTION ITEM
Date of Meeting
December 10, 2024
DATE: November 22, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Julie Yun (YOON), Capital Project Manager
Jon Sloan, Senior Manager, Environmental Programs
SUBJECT: Terminal 5 Southeast (T5SE) Habitat Restoration – Design and Pre-construction
Services Authorization (CIP# C801246)
Amount of this request:
$1,500,000
Total estimated project cost:
$8,900,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to approve design authorization
to 1. Complete design and permitting for the Terminal 5 Southeast Habitat Restoration project,
and 2. Award and Execute of a Preconstruction Services Contract via Heavy-Civil General
Contractor/Construction Manager (GC/CM) delivery method. The total request for this action is
$1,500,000 for a project total authorization of $1,715,000.
EXECUTIVE SUMMARY
The Terminal 5 Southeast (T5SE) Habitat Restoration project was identified as a priority action
site through systematic bank line assessments conducted as part of the Sustainable Shorelines
Program. This project is the first of many future capital projects to come from this program.
This project is driven by the following objectives:
1. Stabilize actively eroding shoreline using sustainable alternative stabilization techniques.
2. Remove the structurally compromised and condemned T5SE building (Mission to
Seafarers Building, 1011 SW Klickitat Way #209, Seattle, WA 98134).
3. Optimize use of underutilized real estate. Port Real Estate has confirmed that no other
revenue-generating opportunity is available through this property.
4. Protect against possible exposure to contaminated soils and impact to utilities.
5. Generate Natural Resource Damages (NRD) and/or Endangered Species Act credits.
This project will be delivered through the Heavy-Civil General Contractor/Construction Manager
(HC GC/CM) Procurement Methodology. This alternate delivery method was selected to ensure
successful delivery based on the following benefits: early engagement of the Contractor to
COMMISSION AGENDA – Action Item No. 8k Page 2 of 6
Meeting Date: December 10, 2024
Template revised June 27, 2019 (Diversity in Contracting).
provide constructability and pricing input in front-end design/permitting development, and
qualification-based contractor selection. Following completion of the preconstruction phase
and successful negotiation of the Maximum Allowable Construction Cost, the Project will return
to Commission for Construction Authorization.
JUSTIFICATION
This project will stabilize the rapidly eroding shoreline at T5SE and eliminate the risks of
uncontrolled or reactive failure of the “Mission to Seafarer’s” building. This building has been
condemned, vacated, and continues to deteriorate as it stands on the eroding bankline at the
project site. The building demolition will be required to occur as a precursor to any regrading
and habitat restoration work.
This project supports the following Century Agenda and Maritime Division priorities:
(1) Restore, create and enhance 40 additional acres of habitat in the Green/Duwamish
watershed and Elliott Bay.
(2) Manufacturing and industrial districts are protected and enhanced, to prevent sprawl to
outlying undeveloped sites.
(3) Reduce air pollutants and carbon emissions.
Further, this project supports the Sustainable Shorelines Program which includes systematic
bankline assessments to monitor and identify eroding shorelines that require repair and
stabilization actions in short- and long-term horizons. The program identifies opportunities to
soften Port-owned banklines using sustainable alternative shoreline stabilization techniques
and incorporate habitat components. Monitoring inspections and assessments have provided
evidence of continuing shoreline erosion and corresponding sinkholes in the T5SE uplands that
require preventative action now. Port staff aims to maximize habitat generation to the extent
possible in rebuilding the shoreline in good stewardship of the land and of public funds.
Diversity in Contracting
This project will utilize internal Port Engineering staff to develop design. The project team will
work with Diversity in Contracting Department to determine participation opportunities and
appropriate WMBE aspirational goals in the construction phase of the project.
DETAILS
Scope of Work
This project will utilize a Heavy-Civil GC/CM alternate delivery method. Pursuing this method of
delivery will allow for early engagement of the general contractor (GC) for more reliable scope
definition, and in turn reliable cost and permitting certainties. Port staff will leverage recent
Lessons Learned documented from a directly comparable project at Duwamish River People’s
COMMISSION AGENDA – Action Item No. 8k Page 3 of 6
Meeting Date: December 10, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Park (DRPP). Like the T5SE Habitat Restoration project, the DRPP project utilized in-house
design and the use of Heavy-Civil GC/CM to deliver a successful outcome.
The scope of this project includes the following elements:
(1) Demolish “Mission to Seafarers” building
(2) Remove existing shoreline armor and debris, utilities, fencing, and pavement within
project area
(3) Install shoreline stabilization using nature-based techniques to provide erosion control
and regrade the project site to include off-channel marsh, structural anchored wood,
riparian edge, and berm.
(4) Restore fencing, signage, paving per easement negotiation.
This project anticipates creating and enhancing 1.72 acres of estuarine habitat. The Port team
will collaborate with the Elliott Bay Natural Resource Damage Assessment (NRDA) Trustee
Council (Trustees) to develop a final design that will generate habitat credits. Similar to DRPP,
the habitat credits generated from this project can be used by the Port. Surplus credits can be
sold to a third party to generate Port revenue. Currently, this project has been informally
initiated with the Trustees for an evaluation of the estimated credit value.
Schedule
This project anticipates construction across two in-water work windows (2026-2027 & 2027-
2028).
This project will proceed per the “Natural Resource Restoration and Enhancement Credit
Protocol” for pre- and post-construction phases. This project is currently undergoing the first
step of the pre-construction protocol to verify the project’s potential for habitat restoration
credit generation and arrive at a preliminary estimate of habitat credits. Following this step,
each design milestone (30%/60%/90%/100%) will undergo a review cycle to receive Trustee
input, ideally within 60 days of request.
The project team anticipates project milestones as reflected below, pending duration of each
design milestone review cycle with the Trustees, as well as the timeline for permitting agency
and tribal approvals.
Activity
Commission design authorization
Design start
Commission construction authorization
Construction start
In-use date
COMMISSION AGENDA – Action Item No. 8k Page 4 of 6
Meeting Date: December 10, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Cost Breakdown
This Request
Total Project
Design
$1,500,000
Construction
0
Total
$1,500,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Defer action.
Cost Implications: No additional capital spent beyond current authorization.
Pros:
(1) Retain Port capital for other priority projects and financial initiatives.
(2) Defer temporary construction impacts.
Cons:
(1) Continued erosion may result in uncontrolled failure of the shoreline, which may
impact building foundation and parking areas shared with easement neighbors.
(2) Financial risk of escalated costs to design and construct project at a deferred timeline.
This is not the recommended alternative.
Alternative 2 – Pursue bankline stabilization without habitat restoration through NRDA
coordination.
Cost Implications: Allocation of $2,500,000 in capital funds.
Pros:
(1) Preserve longevity of the shoreline at T5SE.
(2) Benefit asset preservation efforts of surrounding easement owners through
collaboration.
Cons:
(1) Upfront cost.
(2) Temporary construction impacts.
(3) Missed opportunity for habitat generation in good stewardship of public funds and
lands.
This is not the recommended alternative.
Alternative 3 – Proceed with design & permitting of the project as requested.
Cost Implications: Allocation of $1,500,000 in capital funds.
Pros:
(1) Preserve longevity of the shoreline at T5SE.
(2) Maximize habitat generation in good stewardship of public funds and lands.
(3) Generate Port revenue via habitat credit generation through the NRDA process.
COMMISSION AGENDA – Action Item No. 8k Page 5 of 6
Meeting Date: December 10, 2024
Template revised June 27, 2019 (Diversity in Contracting).
(4) Benefit surrounding easement owners’ operations through collaborative asset
preservation.
Cons:
(1) Upfront cost.
(2) Temporary construction impacts.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$7,100,000
$1,800,000
$8,900,000
AUTHORIZATION
Previous authorizations
$215,000
$0
$215,000
Current request for authorization
$1,500,000
$0
$1,500,000
Total authorizations, including this request
$1,715,000
$0
$1,715,000
Remaining amount to be authorized
$5,385,000
$1,800,000
$7,185,000
Annual Budget Status and Source of Funds
This project was included in the 2024 Capital Plan under C801246 with a total project cost of
$2.1 million. The additional cost will be covered by C800002 Maritime Reserve.
This project is funded by the General Fund.
Financial Analysis and Summary
Project cost for analysis
$8,900,000
Business Unit (BU)
Maritime Environmental - Habitat Initiatives
Effect on business performance
(NOI after depreciation)
The project will require performance monitoring for 10
years, estimated to cost $75,000 annually starting in
2028.
The project may generate sellable credits to be sold to a
third party. An estimate of potential revenue will be
provided at Construction Authorization.
IRR/NPV (if relevant)
TBD
CPE Impact
NA
COMMISSION AGENDA – Action Item No. 8k Page 6 of 6
Meeting Date: December 10, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Future Revenues and Expenses (Total cost of ownership)
The cost for performance monitoring is anticipated to be approximately $75,000 in 2028 and
will be required annually for 10 years. It will then be incorporated into the Port’s long-term
stewardship program. The project may generate sellable surplus NRD credits pending
mitigation bank evaluation with the Trustees.
ADDITIONAL BACKGROUND
None.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None.