COMMISSION AGENDA MEMORANDUM Item No. ACTION ITEM Date of Meeting DATE: June 16, 2025 TO: Stephen P. Metruck, Executive Director FROM: Linda Springmann, Director Cruise Business & Elliot Bay Operations Kelly Purnell, Capital Project Manager 8h July 8, 2025 SUBJECT: Terminal 91/ Pier 66 Cruise Shore Power Extension - Additional Funding Authorization (CIP #801983) (Short Form) Amount of this request: Total estimated project cost: $1,100,000 $33,000,000 ACTION REQUESTED Request Commission authorization for the Executive Director to approve additional funding to award and execute the Validation Period of the major public works Progressive Design Build contract for T91/P66 Cruise Shore Power Extension (C801983) project. Total requested for this action is $1,100,000 for a total project authorization of $10,450,000. SUMMARY This request is for additional funding authorization to proceed with awarding and executing the Validation Period of the Progressive Design Build (PDB) contract for the Terminal 91/Pier 66 Cruise Shore Power Extension project. A single proposal was received from Skanska USA Building Inc. in response to the project Request for Proposals. The sole proposal was deemed responsible. The proposal received for the initial contract amount for validation was $1,277,000, which is 30% over an anticipated $900,000 for the Validation Period. This amount exceeds the remaining authorized budget for procurement, validation and preliminary design, necessitating the need for additional funding. The additional funds requested in this action will be used to cover the difference in the proposal amount against the remaining authorized budget and to ensure funds are available for the required soft costs for early PDB development, project contingency, and taxes. The recommendation is to accept the proposal received. The proposal received is comprehensive and the design-builder team is fully qualified with the requisite experience to successfully deliver this project within the time constraints of the project to have the shore power in service by cruise season of 2027 per Commission Order No. 2024-08. Rejecting this proposal would significantly delay the project and it would not be possible to implement shore power for all homeported Template revised April 12, 2018. COMMISSION AGENDA - Action Item No. 8f Meeting Date: June 24, 2025 Page 2 of 3 cruise ships by 2027. Acceptance of this proposal would meet the project goal of 6% WMBE participation. There were thirteen (13) prime plan holders for the project with only one firm submitting a Statement of Qualifications and Proposal. The project team determined the following concerns may have discouraged proposers: very aggressive timeline to achieve in service date, site congestion during cruise operations and commercial fishing operations seasons, constraints due to other construction projects, and permitting complexities. As a PDB project, a robust validation period and preliminary design work are required to determine the full scope of the project in partnership with the Port of Seattle project team. At the end of Validation, the Port and the design-builder will negotiate to establish target scope, schedule, and budget for the project. Following Validation and with Commission authorization of additional funding, the project will proceed to the next period of the contract to further advance the design and develop a Guaranteed Maximum Price (GMP). 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. The target in-service date for completion is Q1/2027 and closeout scheduled for Q3/2027. Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Original estimate Previous changes - net Revised estimate $4,000,000 $29,000,000 $33,000,000 $0 0 0 $4,000,000 $29,000,000 $33,000,000 AUTHORIZATION Previous authorizations Pier 91 Pier 66 Watts Marine Sole Source Contract Current request for authorization Pier 91 Pier 66 Watts Marine Sole Source Contract Total authorizations, including this request Pier 91 Pier 66 Watts Marine Sole Source Contract Remaining amount to be authorized 9,350,000 $850,000* $500,000* $8,000,000 $1,100,000 $770,000 $330,000 $0 $10,450,000 $1,620,000 $830,000 $8,000,000 $22,550,000 0 9,350,000 $850,000* $500,000* $8,000,000 $1,100,000 $770,000 $330,000 $0 $10,450,000 $1,620,000 $830,000 $8,000,000 $22,550,000 Template revised September 22, 2016; format updates October 19, 2016. 0 0 0 0 $0 COMMISSION AGENDA - Action Item No. 8f Meeting Date: June 24, 2025 Page 3 of 3 * Current authorization in the amount of $1,350,000 includes $350,000 transferred from CIP # C801293 (funds previously authorized by Commission August 8, 2023 when T91 Shore Power Extension was coupled with the purchase of the mobile cable positioning devices (CPDs)) to CIP# C801983 when the T91 shore power extension scope was consolidated under CIP #C801983 with P66 Shore Power extension. An additional $1,000,000 was authorized via DORA Request 1418-2024 in September 2024 to provide funding for the procurement, Validation phase, and preliminary design of the shore power extension projects. The proposal received for Validation phase and preliminary design exceeds the remaining authorized budget, exclusive of the Watts Marine contract funding. ATTACHMENTS (1) Presentation PREVIOUS COMMISSION ACTIONS OR BRIEFINGS April 22, 2025 - Funding authorization in the amount of $8M for Watts Marine contract to purchase shore power equipment. August 8, 2023 - The Commission authorized funding for Pier 91 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. Template revised September 22, 2016; format updates October 19, 2016.