Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No. 10c
ACTION ITEM Date of Meeting April 22, 2025
DATE: March 10, 2025
TO: Stephen P. Metruck, Executive Director
FROM: Linda Springmann, Director, Cruise Operations & Maritime Marketing
Kelly Purnell, Capital Project Manager, Waterfront Project Management
SUBJECT: Terminal 91/Pier 66 Cruise Shore Power Extension – Contract with Watts Marine,
LLC for Cruise Shore Power Electrical Equipment Design and Procurement (CIP #
C801983)
Amount of this request:
$8,000,000
Total estimated project cost:
$28,300,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a sole source purchase
contract with Watts Marine, LLC (Watts) for procurement of long-lead shore power electrical
equipment for Terminal 91/Pier 66 Cruise Shore Power Extension in the amount of $8,000,000.
Total request for this action will be $8,000,000 for a total authorized amount of $9,350,000 out
of a total estimated project cost of $28,300,000.
EXECUTIVE SUMMARY
In July 2024, the Port passed Commission Order No. 2024-08 mandating all homeport cruise ships
to connect to shore power by 2027, three years earlier than the 2030 goal set in the Port’s
adopted Maritime Climate and Air Action Plan. The existing shore power systems at Pier 91 and
Pier 66 need to be extended at both locations to maximize flexibility to enable shore power
connections for all homeport cruise ships by the end of 2027. Due to the proprietary nature of
the electrical shore power equipment and the anticipated long lead time, the project is
requesting funding to execute a sole source purchasing contract with Watts Marine to ensure
that design and procurement of the equipment is completed and ready for installation in Q4 of
2026. In parallel, the project will proceed with the selection of a design-builder utilizing the
Progressive Design Build alternative for project delivery to design and construct the necessary
berth improvements and install the shore-power equipment.
The provision of shore power for cruise ships is the Port’s greatest opportunity to reduce
greenhouse gas (GHG) emissions and improve local air quality. Currently, the Port’s Smith Cove
Cruise Terminal at Pier 91 (P91) which opened in 2009 provides shore power at its two cruise
COMMISSION AGENDA – Action Item No. 10c Page 2 of 8
Meeting Date: April 22, 2025
Template revised June 27, 2019 (Diversity in Contracting).
berths. The single berth at the Bell Street Pier Cruise Terminal at Pier 66 (P66) which opened in
1999 has a new shore power system completed in September 2024. While all three of the Port’s
cruise berths are now electrified, additional flexibility is needed to accommodate all vessel and
berthing configurations to meet Commission Order No. 2024-08.
JUSTIFICATION
The Port of Seattle is an industry and regional leader in economic development and sustainability.
The Port’s investment in cruise terminals at Pier 66 and Pier 91 result in a significant contribution
to the region’s economy, generating more than 5,500 jobs and nearly $900 million in total local
business revenue each cruise season. The Port also recognizes its responsibility and the
importance of concerted efforts to balance economic growth with sustainability. The Seattle
Waterfront Clean Energy Strategic Plan and the adopted Maritime Climate and Air Action Plan
provide a Port investment strategy to protect the environment and improve community health.
As a global leader in sustainability, the Port is committed to addressing global climate change and
improving local air quality. In 2017 the Port’s Commission adopted GHG reduction targets in
alignment with the Paris Climate Agreement, then updated goals in October 2021 in recognition
of the climate crisis. In November 2021, the Port Commission adopted the Maritime Climate and
Air Action Plan which identifies strategies and actions the Port can take through 2030 to achieve
the Port’s Century Agenda GHG target to reduce GHG emissions 50% by 2030 and to position the
Port to phase out seaport-related emissions entirely by 2050. The plan includes a specific
commitment to install shore power at all cruise berths and maximize connections by 2030. In
May 2022 the Port launched a collaborative effort to explore the feasibility of a maritime green
corridor aimed at accelerating the deployment of low and zero GHG emission cruise ships and
operations between Alaska, British Columbia, and Washington. Most recently, the Port passed
Commission Order No. 2024-08 mandating that all home ported cruise ships must connect to
shore power by 2027, three (3) years earlier than the Maritime Climate and Air Action Plan 2030
goal.
Shore power can significantly reduce GHG and air pollution emissions with each connection. Staff
estimate shore power can avoid approximately 268 thousand metric tons of carbon (CO2e)
cumulatively through 2050. Assuming a 25-year infrastructure life and $44 million cost, that
represents a cost per ton of carbon reduced over the full lifespan to range from $164 to $406 per
metric ton CO2e. This range is based on the 2025 cruise schedule with the current ability to
connect cruise ships to shore power at Pier 91 and Pier 66 (86% of homeport calls). If 100% of
homeport ships plug in consistent with the Commission Order No. 2024-08 in 2027 shore power
use would result in an additional 45 thousand metric tons of cumulative carbon emissions
avoided over a 25-year infrastructure life.
Diversity in Contracting
Watts Marine, LLC is a WMBE firm. The sole-source contract with Watts for design and
procurement of the shore power equipment is 100% WMBE.
COMMISSION AGENDA – Action Item No. 10c Page 3 of 8
Meeting Date: April 22, 2025
Template revised June 27, 2019 (Diversity in Contracting).
The project team in coordination with the Diversity in Contracting Department has also included
a 6% WMBE aspirational goal in the Progressive Design Build major work contract for this work
to design and construct the pathway for the shore power system and other structural elements
of the project, and to install the Watts designed and procured shore power equipment.
DETAILS
The cruise shore power systems at Pier 91 and Pier 66 are both Watts Marine proprietary designs.
Watts Marine is also contracted to provide operations and maintenance of the shore power
systems at both locations. The first phase of the cruise shore power extension project requires
the execution of a sole source purchasing contract with Watts Marine to design and procure
proprietary shore power electrical equipment for Pier and Pier 66. At P91, this will include new
equipment to extend the existing system and some replacement equipment for components
nearing the end of its useable life. The new equipment will integrate with the existing Watts-
designed and operated shore power system at both terminals including the mobile cable
positioning devices (CPD) procured in 2024. A sole source waiver has been executed to purchase
the shore power equipment from Watts Marine (Competition Waiver No. 2024-009).
In conjunction with the Watts Marine purchasing agreement, the project will execute a
Progressive Design Build project delivery to accelerate the design and construction of the cruise
shore-power projects at both terminals and plug-in all homeported cruise ships by 2027.
Scope of Work
The major components of the Watts Marine purchasing contract scope for P91 and P66 cruise
shore power project include the following:
(1) Pier 91:
West Berth:
Primary Switchgear
o Replace existing transformer
Secondary Switchgear
o Breakers
o Remote ground switches
New saw-tooth boxes (shore power connection points)
Design, testing and commissioning
East Berth:
Secondary Switchgear
o Breakers
o Remote ground switches
New saw-tooth boxes (shore power connection points)
Capacitor bank in east berth substation
Design, testing and commissioning
COMMISSION AGENDA – Action Item No. 10c Page 4 of 8
Meeting Date: April 22, 2025
Template revised June 27, 2019 (Diversity in Contracting).
(2) Pier 66:
Secondary Switchgear
o New ground switch components in blank ground switch cubical #3
One (1) new saw-tooth box (shore power connection point)
Design, testing and commissioning
The scope for the Progressive Design Build contract includes the following components for both
Pier 91 and Pier 66:
(1) Design and Construction
Berthing study of all current and known future cruise ships to determine optimal
shore power connection point locations (saw-tooth boxes) and mooring bollard
locations to maximize flexibility to connect cruise ships with different shore power
configurations.
Civil and structural design and construction for all materials and equipment for shore
power equipment foundations, electrical conduit duct banks, vaults, saw-tooth box
locations, potential limited deck panel replacement and new mooring bollards* at Pier
91 west.
Installation of Watts - procured shore power equipment.
*New bollards will allow for proper mooring of ships with different shore power
configurations. Currently, only ships with starboard, aft shore power connections can
plug-in. Additional bollards are needed for the alternative mooring arrangements
related to other shore power connection locations on the ships.
Schedule
The schedule to meet Commission Order No. 2024-08 is aggressive. Project constraints including
other concurrent or overlapping critical projects at P91, permitting delay potential, supply chain
uncertainty, and highly constrained construction work windows due to cruise operations,
commercial fishing operations, and tribal agreements create the risk of schedule slippage.
Schedule assumptions account for best case permitting scenarios, including avoidance of in-
water work. However, until a Progressive Design Build contract is executed in which schedule
assumptions can be solidified with the contractor, the ability to meet the target in-service date
by cruise season of 2027 is at risk. A Progressive Design Build project delivery with a sole source
contract to Watts Marine for shore power equipment design and procurement was selected to
mitigate schedule risk to the extent possible. Progressive Design Build allows for some
acceleration of the design process and minimizes potential for unknown construction risks that
cause delays. Contracting with Watts Marine minimizes compatibility risks that could occur if
introducing a different shore power technology and streamlines the design and procurement
process as it is an extension of the existing system, not a replacement.
COMMISSION AGENDA – Action Item No. 10c Page 5 of 8
Meeting Date: April 22, 2025
Template revised June 27, 2019 (Diversity in Contracting).
Activity
Commission Authorization – T91 Mobile Cable Positioning Devices
(CPDs) and T91 Cruise Shore Power Extension North initial design
funding
August 8, 2023
DORA – Progressive Design Build Procurement and Preliminary Design October 16, 2024
Progressive Design Build Procurement Q4 2024 – Q3 2025
Commission Authorization – Watts Marine, LLC Purchasing Contract April 22, 2025
Executed Progressive Design Build Contract - Validation Q3 2025
PDB Target Scope and Budget – Design Authorization Q4 2025
PDB Design and Progressive Design Build Guaranteed Maximum Price
Funding and Construction Funding Authorization
Q1 2026
Construction Start Q4 2026 – 2027
In-use date 2027
Cost Breakdown
This Request
Total Project
Design
Pier 91
Pier 66
$0
$0
$0
$2,100,000
$1,400,000
$700,000
Material Pre-Procurements (Watts)
Pier 91
Pier 66
$8,000,0000
$7,000,000
$1,000,000
$8,000,0000
$7,000,000
$1,000,000
Construction
Pier 91
Pier 66
$0
$0
$0
$18,200,000
$10,600,000
$7,600,000
Total $0
$28,300,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Defer extension of cruise shore power systems at Pier91 and Pier 66. Continue to
enable limited shore power connections for ships that are compatible with the existing shore
power infrastructure.
Cost Implications: While the full cost has not been estimated, per the mandate of Commission
Order No. 2024-08, cruise ships that cannot connect to shore power by 2027 may not be able to
dock at Port cruise berths impacting the cruise revenue for each ship turned away.
Pros:
(1) Provides time for Port to apply for grants to fund extension of shore power system.
Cons:
(1) Does not meet the mandate of Commission Order No. 2024-08 to connect all home-
ported cruise ships to shore power by 2027.
COMMISSION AGENDA – Action Item No. 10c Page 6 of 8
Meeting Date: April 22, 2025
Template revised June 27, 2019 (Diversity in Contracting).
(2) Impacts cruise revenues.
(3) Maintains status quo on GHG emissions.
This is not the recommended alternative.
Alternative 2 – Do not sole-source design and procurement of shore power equipment to Watts
Marine and allow for proposals for any shore power system vendor.
Cost Implications: Full cost analysis for this alternative has not been estimated. However, an
entirely new system would exceed the cost of extending an existing system in which most of the
major electrical components can remain in place.
Pros:
(1) Potential for innovative kinds of shore power systems.
Cons:
(1) Opening the shore power system procurement to vendors other than Watts Marine will
require a complete rebuild of the shore power infrastructure at both Pier91 and Pier 66
(2) Will cause a disruption in the operations and maintenance of the system as it is currently
operated by Watts.
(3) Will require additional time for design and procurement, risking the already tight
schedule.
This is not the recommended alternative.
Alternative 3 –Sole-source contract to Watts Marine for design and procurement of the shore
power equipment in collaboration with a Progressive Design Build contract.
Cost Implications: $8,000,000
Pros:
(1) Minimizes risk of shore power system incompatibility by extending the existing Watts-
designed and operated proprietary shore power system at both Pier 91 and Pier 66.
(2) Executing a sole-source purchasing contract with Watts Marine allows for long-lead
shore power equipment to be designed and ordered early.
Cons:
(1) Limits potential for innovation in system design.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate
/Authorization Summary Capital
Expense
Total
COST ESTIMATE
Original estimate $4,000,000
$0
$4,000,000
Previous changes – net* $24,300,000
0
$24,300,000
Revised estimate $28,300,000
0
$28,300,000
COMMISSION AGENDA – Action Item No. 10c Page 7 of 8
Meeting Date: April 22, 2025
Template revised June 27, 2019 (Diversity in Contracting).
AUTHORIZATION
Previous authorizations 1,350,000
0
1,350,000
Current request for authorization 8,000,000
0
8,000,000
Total authorizations, including this request $9,350,000
0
$9,350,000
Remaining amount to be authorized $18,950,000
$0
$18,950,000
* The original estimate for this project assumed a single new shore power connection point on
the west berth of Pier 91. In July 2024, Commission Order No. 2024-008 was passed requiring all
home ported cruise ships to connect to shore power by 2027. To meet the mandate, scope was
expanded to include multiple additional connection points on both the east and west berths of
Pier 91, as well as adding a third connection point to the existing shore power system at Pier 66.
The shore power equipment at Pier 91 is also nearing the end of its useable life and is no longer
serviceable, necessitating the replacement of breakers and the west berth transformer to
accommodate extension of the shore power system to meet the project objectives. This
increased the overall budget needs for the larger scope.
Annual Budget Status and Source of Funds
This project is a combination of two previous projects included in the 2025 Capital Plan C801983
P66 Shore Power Extension ($7.5M) and C801293 T91 Cruise Shore Power Extension ($15.8M)
with a total project cost of $23,300,000. The updated project costs, including the addition of
bollards, will be covered by Maritime Reserve C800001.
Future spending will be funded by the General Fund.
Financial Analysis and Summary
Project cost for analysis $28,300,000
Business Unit (BU) Cruise Operations
Effect on business performance
(NOI after depreciation)
•No incremental operating revenue or cost-savings is
directly associated with this project.
• Annual maintenance and repair contract costs for P66 shore
power equipment are included in the 2025 budget at $90,000.
• Annual depreciation expense is expected to increase by
approximately $1.1M.
IRR/NPV (if relevant) N/A
CPE Impact N/A
Future Revenues and Expenses (Total cost of ownership)
The electricity utility expenses at Pier 66 will be recovered through utilities sales revenue, so
there is no net cost to the Port. The annual contract maintenance and repair expenses at Pier 66
are included in the 2025 approved budget at $90,000. The electricity utility expenses at Pier 91
are paid directly by the cruise line to Seattle City Light. The existing shore power equipment is
COMMISSION AGENDA – Action Item No. 10c Page 8 of 8
Meeting Date: April 22, 2025
Template revised June 27, 2019 (Diversity in Contracting).
currently owned and maintained by the cruise line. If the Port takes ownership of the existing
equipment, the Port will enter into an agreement with Seattle City Light and invoice the cruise
lines for electricity use to recover the costs.
ADDITIONAL BACKGROUND
Originally, Pier 91 and Pier 66 cruise shore power projects were envisioned as two separate
projects under two CIP #s. Initial funding for the Pier 91 Cruise Shore Power Extension North was
authorized by Commission on August 8, 2023, inclusive of the purchase of two (2) mobile cable
positioning devices (CPD) under CIP # C801293. Pier 66 Cruise Shore Power Extension was under
CIP # C801983. As part of a DORA executed on October 16, 2024 for a Progressive Design Build
procurement and early design for both projects, Pier 91 Cruise Shore Power Extension, except
for the costs associated with the purchase of the CPDs which remained under C801293, was
transferred to CIP # C801983 with P66 to consolidate the projects under a single CIP and to help
expedite both projects to meet the mandate of Commission Order No. 2024-008 to connect all
home ported cruise ships to shore power by 2027.
ATTACHMENTS TO THIS REQUEST
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
August 8, 2023 - The Commission authorized funding for Pier91 Cruise Shore Power Extension
and CPDs in the amount of $2,500,000 for the purchase of the CPDs and early design funding of
the extension.
