COMMISSION AGENDA MEMORANDUM Item No. ACTION ITEM Date of Meeting 10a August 12, 2025 DATE: August 5, 2025 TO: Stephen P. Metruck, Executive Director FROM: Rut Perez Studer, Senior Manager Fishing Vessel Services Mark Longridge Capital Project Manager, Waterfront Project Management SUBJECT: Fishermen's Terminal Northwest Dock (C800444) Design Authorization Amount of this request: Total estimated project cost: $5,900,000 $50-70,000,000 ACTION REQUESTED Request Commission funding authorization for the Executive Director to complete design and permitting to replace the existing Piers 1 & 2 of the Northwest Dock at Fishermen's Terminal in the amount of $5,900,000 for a total preliminary estimated project cost range of $50-70 million. (CIP # C800444). EXECUTIVE SUMMARY This project will replace the north and south legs of both Piers 1 & 2 of the Northwest dock at Fishermen's Terminal to ensure the long-term viability of the Port as the home to the North Pacific Fishing Fleet. Piers 1 & 2 of the Northwest dock are the oldest part of the Port's oldest facility, constructed in 1978 & 1979 respectively. At almost 50 years old they are at the end of their service life. Planned redevelopment includes: Demolition of the four existing timber pile supported piers (approximately 25,000 square feet); replacing Pier 2 in kind and widening Pier 1 to allow for vehicle access to the moorage customers; upgrade of the existing timber fender system to steel to match other previously upgraded areas of the Northwest dock; upgraded electrical capacity and connection options to meet current code. The project scope assumes no berth dredging will be required to accommodate existing vessel classes. JUSTIFICATION The redevelopment of finger Piers 1 & 2 of the Northwest Dock supports the following Maritime Division goals toward achieving Century Agenda objectives: Template revised January 10, 2019. COMMISSION AGENDA - Action Item No. 10a Meeting Date: August 12, 2025 Page 2 of 5 1. Continue to increase the economic value of the fishing and maritime cluster including the number of local jobs and business revenue. 2. Prioritize uses that support the commercial fishing industry, with a focus on anchoring the North Pacific fishing fleet in Seattle. 3. Supports the Port's strategy to "be the greenest and most energy-efficient port in North America" by replacing existing creosote piling with more sustainable materials as well as modernizing our electrical capacity to modernize along with the fleet. 4. Supports anticipated growth in other maritime sectors and continue the unique multi-use facility within the Ship Canal. Diversity in Contracting The project team will coordinate with the Diversity in Contracting Department to determine appropriate WMBE aspirational goals for this project. DETAILS Piers 1 and 2 are the last remaining original timber sections of the Northwest dock. Built in 1978 and 1979 respectively, these piers have had minor repairs and upgrades throughout the years including bullrail replacements and electrical upgrades along with much of the rest of the terminal in 1999. While still functional, these almost 50-year-old piers are reaching the end of their service life and need to be replaced before any significant failures occur. Scope of Work The current authorization is for Port staff time and consultant contract work to complete the design, permitting, and project management up to the advertisement of the construction work. The work to be designed includes the demolition of the existing north and south pier structures, including removal of existing creosote timber piles, installation of new structural piles and deck paneling, and associated utilities including vessel power and water services. The project will also replace the existing fender system for the piers and areas to the east on the Northwest dock with a steel system like that implemented on other parts of the Dock in 2010. The narrower Pier 1 will be widened to accommodate vehicle traffic similar to the existing functionality of Pier 2, upgrading the usability of the facility for moorage customers. The project scope assumes no berth dredging will be required to accommodate existing vessel classes. The proposed Fishermen's Terminal Northwest Dock project is a Tier 2 project under the Sustainable Evaluation Framework Policy Directive. The project team will explore various design features to minimize impacts on the environment and will implement construction best management practices. The project team will present their evaluation and recommendations to the SEAC committee at the 30% design stage. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 10a Meeting Date: August 12, 2025 Page 3 of 5 Schedule Schedule assumptions below reflect current expected durations for design and permitting; however, many of these durations are highly variable and controlled by local, state, and federal agencies, which adds schedule risk to the project. The design effort should take approximately one year after consultant selection. Permitting for in-water work is currently the critical path on the schedule, estimated at 12-18 months after application once 30% design has been completed. This current schedule also assumes that the project will return to the Commission for Construction Authorization before all permits have been finalized to optimize the construction schedule. The schedule assumptions below are conservative but reasonable. All in-water work associated with the work must be completed within the fish window from December 1 to April 15 of each construction season. This presents another constraint to the project that will need to be closely monitored. Further, the work will need to be carefully planned to minimize the disruption to existing customer moorage and operations, likely using a phased approach over multiple construction seasons. Customer and staff feedback will be needed to refine the best construction phasing to minimize impacts to the active facility operations. Activity Commission design authorization Design start Commission construction authorization Construction Start In-use date 3rd Quarter 2025 4th Quarter 2025 1st Quarter 2027 3rd Quarter 2027 3rd Quarter 2029 The current cost estimate reflects assumptions that the pier will be constructed in a conventional manner similar to past facilities and has used typical sections from these past designs to inform the estimate. Cost Breakdown This Request Total Project Design, Permitting (total) Construction Total $5,900,000 $0 $5,900,000 $6,000,000 $54,000,000 $60,000,000 Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 10a Meeting Date: August 12, 2025 Page 4 of 5 ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 - Maintain the status quo - Continue to use the timber piers in their current configuration and condition. Cost Implications: This alternative carries some uncertainty and risk and accordingly much variability in cost potential. Maintenance costs for the piers are not currently high but would expand greatly if the piers were damaged or their condition deteriorated beyond a usable state or had to be significantly load restricted, for example. Pros: (1) Cons: (1) (2) (3) Lower initial capital cost. Risk to the structure if kept in use. Deterioration will continue. The electrical system on the piers will remain ungrounded and not up to current code. Design and permitting replacement piers if needed due to failure would take approximately 2 years during which time the damaged sections could be unusable. This is not the recommended alternative. Alternative 2 - Replace the existing timber piers with upgraded piers in the same general alignment and configuration as the current facility but allowing vehicle access to all berths and upgraded utility connections. Cost Implications: Pros: (1) (2) Provides upgraded facility for tenant use. Ensures full operation of the berth space for the North Pacific Fishing Fleet. Cons: (1) Higher initial capital cost. This is the recommended alternative. FINANCIAL IMPLICATIONS Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Original estimate $60,000,000 $0 $60,000,000 AUTHORIZATION Previous authorizations Current request for authorization Total authorizations, including this request $100,000 $5,900,000 $6,000,000 $0 $0 $0 $100,000 $5,900,000 $6,000,000 Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 10a Meeting Date: August 12, 2025 Remaining amount to be authorized Page 5 of 5 $54,000,000 $0 $54,000,000 Annual Budget Status and Source of Funds This project is included in the 2026 to 2030 CIP under C800444 Fishermen's Terminal Northwest Dock Rehabilitation with a preliminary total project cost of $60,000,000. Financial Analysis and Summary Project cost for analysis Business Unit (BU) Effect on business performance (NOI after depreciation) IRR/NPV (if relevant) CPE Impact $60,000,000 Ship Canal Fishing & Ops This project is an enhancement project to the Fishermen's Terminal Operations; it won't create additional revenue. NPV is the present value of the total project cost Future Revenues and Expenses (Total cost of ownership) Extending the service life of our existing assets delays replacement costs, enhancing the economic viability of our operations. Additional benefits include cost-effectiveness and minimal disruption to the terminal activities. ATTACHMENTS TO THIS REQUEST (1) Presentation slides PREVIOUS COMMISSION ACTIONS OR BRIEFINGS None Template revised June 27, 2019 (Diversity in Contracting).