COMMISSION AGENDA MEMORANDUM Item No. ACTION ITEM Date of Meeting DATE: February 27, 2025 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 Item 8m March 11, 2025 SUBJECT: P-66 Grand Staircase Replacement (CIP# C801371) Construction Funding Authorization Request Amount of this request: Total estimated project cost: $3,560,000 $4,060,000 ACTION REQUESTED Request Commission authorization for the Executive Director to approve funding to advertise and execute a major public works construction contract for the completion of the Pier 66 Grand Staircase Replacement project. This request is in the amount of $3,560,000 for 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, as well as handrail and guardrail replacement based on most recommendations contained in a third-party assessment study completed in April 2023 and vetted by Port staff. The Pier 66 facility was built in 1995 and is now thirty years old. It consists of Anthony's Restaurant, Bell Harbor Marina, Bell Harbor International Conference Center and the Bell Street Pier Cruise Terminal. The Grand Staircase is an exterior staircase that serves all users of the facility and members of the public, connecting the Bell Street bridge and parking garages to the various levels of the facility. Coordination with our cruise business and operations is a priority for minimizing the impact to cruise operations, along with informational signage to advise the public of detours during construction. Template revised January 10, 2019. COMMISSION AGENDA - Action Item No. 8m Meeting Date: March 11, 2025 Page 2 of 7 The project is currently in the design/construction documentation phase, with construction documents at the 90% stage of completion. Permits will be submitted at 90% design. The project does not have permits yet and are working in parallel to fast-track approval. JUSTIFICATION The Pier 66 Grand Staircase Replacement project campus consists of Anthony's Restaurant, the Bell Harbor International Conference Center, the Bell Street Pier Cruise Terminal, and the Bell Harbor Marina Office. 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 2023 Pier 66 Roof Replacement 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 the Port's Century Agenda objectives under the following strategies: (1) (2) Advance this region as a leading tourism destination and business gateway. Use the Port's influence as an institution to promote women and minority business enterprise (WMBE) growth, small business growth, and workforce development. Further, the project supports the following additional imperatives: A. Replace failing concrete with new to provide a safe means of pedestrian travel. B. Protects Existing Assets Ensure that the roof system membrane beneath the staircase maintains its watertight integrity. C. Reduces Unplanned Maintenance Costs Mitigate future costs related to staircase leaks, including mold and corrosion. D. Mitigates Impacts to Existing Business Operations Coordinate with Cruise, BHICC and Anthony's around scheduled business events. E. Employs Sustainable Means and Methods Incorporate environmentally sustainable practices during construction where practical. Diversity in Contracting Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8m Meeting Date: March 11, 2025 Page 3 of 7 Project staff along with the Diversity in Contracting Department have established a Woman and Minority Business Enterprise (WMBE) aspirational goal of 12% for the construction portion of the project and is ready to move forward due to the critical need and timeline ahead of the 2026 FIFA Soccer event hosted by the City of Seattle. DETAILS The project team will:  Facilitate small business opportunities by adhering to the WMBE aspirational goals established for the project.  Mitigate construction-driven business risk impacts by implementing project risk management and phasing plans.  Complete the project safely, on schedule, and on budget.  Work with the contractor to create appropriate signage advising the public of access detours during construction.  The construction site and contractor laydown area will be separated from the public by decorative fencing and paneling with information about the project and alternate access points during construction Scope of Work The scope of work for the P66 Grand Staircase Replacement project includes: (1) (2) (3) (4) New energy-efficient waterproof membrane system replacement and components. New stair treads, new pavers, new and refurbished handrailing with new down facing LED lighting Addition of benches at the stair landings to improve mobility equity. Use of 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 construction authorization Construction start In-use date March 25th 2025 Quarter 3 2025 Quarter 2 2026 Cost Breakdown This Request Total Project Design Construction Total Program $0 $3,560,000 $4,060,000 $500,000 $3,560,000 $4,060,000* Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8m Meeting Date: March 11, 2025 Page 4 of 7 * The current P66 Grand Staircase Replacement total estimated project cost is $5,060,000. Portions of the previous project scope were eliminated. $8,338,000 was previously estimated under C801371 in the approved 2024 Capital Plan. Pending receipt of bids, we may return for additional funds to meet the total project cost. 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) (2) Cons: (1) (2) (3) (4) (5) (6) (7) Saves Port funding. Allows port to reallocate capital investment dollars. Safety hazard to the public continues to increase as the staircase continues to deteriorate. Does not advance efforts to achieve Century Agenda goals. Increases the chances that water infiltration at the stairs which will disrupt tenant activities and damage the interior of the facility causing expensive repairs. The cost of a future stairwell project in the event of membrane or stair tread failure would be the full cost of replacement ($5.06 million) plus escalation and the cumulative ongoing expense costs. Risk cost of lost tenant space due to emergency repairs is unknown but likely would be high. Indefinite deferral could also lead to additional deterioration, leaks and failures. Maintenance costs will continue. This is not the recommended alternative. Alternative 2 - Upgrade and replace only stair tread elements of the existing Grand Staircase without replacing the roof membrane below the stair treads. Cost Implications: $3.07M Pros: (1) (2) (3) (4) (5) Advances Century Agenda goals. Upgrade and replace only stair tread project elements on the existing Grand Staircase Replacement system (do nothing to the roof beneath the staircase). Helps to assure a stronger positive tenant experience and avoids potential safety hazards. 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. Allow a phased approach to lessen the impact to cruise operations. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8m Meeting Date: March 11, 2025 Cons: (1) (2) (3) (4) Page 5 of 7 This alternative uses $3.07M of capital funds that might otherwise be made available for other uses on other projects. This project would not replace the roof membrane beneath the staircase, which would ultimately need to be addressed at some future date. This project would not provide the much-needed LED illuminated down facing railing lighting. Membrane replacement will occur in the future if not replaced with stair treads. This is not the recommended alternative. Alternative 3 - Upgrade and replace the existing Grand Staircase roof membrane that will have a 30-year life. Cost Implications: $5.06M Pros: (1) Advances Century Agenda goals. (2) Optimizes funding requirements. (3) Minimizes risk and improves public safety by replacing the failing concrete staircase with new concrete treads and pavers at the landings. (4) Upgrades and replace the existing roof membrane system, stair treads, pavers, guardrail and handrail systems including LED down shown lighting within the rails that will have a 30-year life. (5) Replaces the original roof membrane that is located beneath the staircase. Due to the access complexities of this location, this portion of the Pier 66 roof was excluded from the 2023 Pier 66 roof replacement capital project. (6) Design-Bid-Build delivery process is best to allow the Port to design elements into one contract with the lowest bid price. (7) Helps ensure a positive visitor experience and demonstrates the Port's commitment to maintaining public assets. (8) This project would provide much needed down-facing LED 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 $5.06M of capital funds that might otherwise be made available for other uses on other projects. (2) Longer construction duration. Construction period is close to the end of the cruise season which may restrict some construction progress and activities. This is the recommended alternative. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8m Meeting Date: March 11, 2025 Page 6 of 7 FINANCIAL IMPLICATIONS Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Original estimate Revised estimate AUTHORIZATION $8,338,000 $5,060,000 $0 $0 $8,338,000 $5,060,000 Previous authorizations Current request for authorization Total authorizations, including this request $500,000 $3,560,000 $4,060,000 0 0 0 $500,000 $3,560,000 $4,060,000 Annual Budget Status and Source of Funds This project (C801371) was included in the 2024 capital budget and plan of finance with a budget of $8,338,000. This project is funded by the General Fund. Financial Analysis and Summary Project cost for analysis Business Unit (BU) Effect on business performance (NOI after depreciation) IRR/NPV (if relevant) CPE Impact $5,060,000 Portfolio Asset Management Annual depreciation will increase by approximately $135K based on estimated 30-year service life. N/A 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. ADDITIONAL BACKGROUND The project and is now ready to move forward due to the critical need and timeline to beat the 2026 FIFA Soccer event hosted by the City of Seattle. ATTACHMENTS TO THIS REQUEST (1) Presentation slides Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8m Meeting Date: March 11, 2025 Page 7 of 7 PREVIOUS COMMISSION ACTIONS OR BRIEFINGS November 19, 2024 - The Commission authorized the Executive Director to design and prepare for construction documents for the P66 Grand Staircase project in the amount of $200,000 for a total authorization of $500,000. At that time, the total estimated cost was $4,060,000. Template revised June 27, 2019 (Diversity in Contracting).