PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4c 
ACTION ITEM 
Date of Meeting      May 24, 2016 
DATE:    May 16, 2016 
TO:      Ted Fick, Chief Executive Officer 
FROM:  John Hall, Project Manager, Marine Maintenance 
Susie Archuleta, Property Manager, Economic Development 
Lindsay Pulsifer, Managing Director, Maritime Division 
SUBJECT:  P66 Elevators 2, 3 and 4, Modernizations (C800813) 
Amount of This Request:        $1,445,000   Source of Funds:       General Fund 
Est. Total Project Cost:          $1,545,000 
Est. State and Local Taxes:         $77,000   Jobs Created:         14.5 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to complete design and
permitting, prepare construction documents, advertise,  award,  and execute  a construction
contract to modernize elevators 2, 3, and 4 at Pier 66. This request also includes funding for a
portion of the work that will be completed by Port crews. The total amount of this request is
$1,445,000 for an estimated project cost of $1,545,000.
SYNOPSIS 
The elevators  needing modernization  serve  levels 1 through 4 at Pier 66, Bell Harbor
International Conference Center (BHICC). The elevators are critical to the hospitality services 
provided by BHICC. These elevators date back to 1994, and their reliability has declined to the
point where action is needed to fulfill the Port's landlord responsibility at this property. Since
the elevators are essential to the facility operations, the project work needs to minimize the out of
service time for the elevators. These elevators are common use between Cruise Operations and
the Conference Center. 
Staff recommends proceeding with the modernization of elevator 2, 3, and 4. Funding will come
from dollars in the CIP for the scope of work. 
BACKGROUND 
Elevator #2 is a central elevator in BHICC. It gets frequent use by guests. It is technically 
classified as a service elevator but is often used as a freight elevator. This elevator requires

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 16, 2016 
Page 2 of 5 
frequent service calls in order to remain in operation. This is a significant burden to the terminal
operators at each occurrence.  Due to the age of the elevator, its heavy use, and recent
performance issues, modernization of the controls and mechanical system are recommended. 
A consultant hired to assess the elevators in 2014, reported the following about elevator #2: 
This elevator is almost twenty years old and is nearing the end of its normal life
expectancy.  Budgeting should begin to modernize the elevator controls to a newer
vintage microprocessor-based controller. The car operating panel and hall buttons would
be upgraded at the same time.  The addition of a closed loop door operator and related
hall gear will increase reliability.  These upgrades will increase elevator reliability and
safety and add another fifteen to twenty years of service. 
Elevators #3 and #4 are located just south of the Bell Street Bridge.  They provide facility
access to the public. The elevator electrical and mechanical components are in need of upgrades,
in order to maintain the reliability and safety of the elevators. The consultant reports on these
elevators are substantially the same as that on elevator #2. 
PROJECT JUSTIFICATION AND DETAILS 
The consultant hired to complete elevator modernization surveys noted the following: 
Elevator #2's existing equipment was engineered and installed in approximately 1994, and is in
average condition for this vintage of equipment. However, the heavy use of this elevator has
caused the existing motor control and door operation to be in need of updating. 
Existing controls are original vintage design, manufactured by Montgomery elevator. Parts are
still available for the product; however the technology is outdated, and the product life is limited. 
The elevator's original design is not satisfactory for current use. 
Elevator #2 frequently breaks down and requires service calls by the maintenance provider in
order to be returned to service. Through this project, all the needed repairs can be made to
substantially reduce need for urgent repair response. 
Elevator #3 and #4's existing equipment was engineered and installed in approximately 1995,
and is in average condition for this vintage of equipment. However, heavy use of these elevators
has caused the existing motor control and door operation to be in need of updating. 
Project Objectives 
Modernize the elevator systems so that their reliability is brought up to appropriate 
standards. 
Modernize the elevator systems so that they comply with current codes. 
Upgrade the elevator car platform for elevator #2, for use as a freight elevator.

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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 16, 2016 
Page 3 of 5 
Minimize disruption to tenant operations. 
Complete the project on time and within budget. 
Scope of Work 
Modernize the elevator controls, the door operation, and the signal fixtures, and update the
motors. For elevator #2, upgrade the car platform so that it's suitable for use as a freight elevator. 
The contract for modernization of all three elevators will be executed this year and will include
procuring parts and materials for all three elevators. To make the work easier to manage, the
elevator construction period will be phased. Phase 1 will address elevator #2, prioritized because
it is the most heavily used and poorest performing elevator.  Phase 2 will address elevators #3
and #4. 
Schedule 
Commission Authorization                May 2016 
Complete Construction Contract Documents     July 2016 
Building Permit Submittal                 August 2016 
Contract Awarded                     October 2016 
Construction Start                        December 2016 
Modernizations Complete                 Phase 1, March 2017 
Phase 2, February 2018 
FINANCIAL IMPLICATIONS 
The proposed project is needed to support the BHICC hospitality operations by significantly
reducing service calls, improving performance, and enhancing aesthetics. The modernizations 
should be completed as soon as possible. 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget (C800813)              $1,587,000         $0    $1,587,000 
Previous Authorizations                  $100,000          $0      $100,000 
Current request for authorization            $1,445,000          $0    $1,445,000 
Total Authorizations, including this request     $1,545,000          $0    $1,545,000 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost              $1,545,000          $0    $1,545,000 
Project Cost Breakdown                     This Request       Total Project 
Construction                                $800,000          $800,000 
Construction Contingency                      $150,000          $150,000 
Construction Management                     $101,000         $101,000 
Design                                   $201,000          $301,000 
Project Management                         $100,000         $100,000
Permitting                                   $16,000           $16,000 

Revised March 28,

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 16, 2016 
Page 4 of 5 
State & Local Taxes (estimated)                    $77,000           $77,000 
Total                                     $1,445,000         $1,545,000 
The relatively high soft costs are for ample time to provide design, phased construction
management, and project management hours to ensure the work is completed as quickly and as
efficiently as possible given the sensitive nature of the operations at this facility.
Budget Status and Source of Funds 
The cost to complete the project is included in the CIP specifically for elevator upgrades. 
The source of the funds is the CIP funded through the Economic Development Division,
C800813. 
Financial Analysis and Summary 
CIP Category             Renewal/Enhancement 
Project Type              Renewal and Replacement 
Risk adjusted discount rate     N/A 
Key risk factors             Key risk factors include cost overruns due to project
constraints. There is risk associated with the project
schedule, specifically getting responsive bidders and the
timely availability of all the needed elevator components. 
Project cost for analysis         $1,545,000.00 
Business Unit (BU)          Economic Development and Maritime Divisions 
Effect on business performance  The project will not generate any incremental revenue.
Total depreciation expense from this project is estimated
at $73,750 per year based on a twenty year asset life. The
allocation of actual project costs to specific assets will be
finalized near the end of the project, estimated to be the
end of the first quarter in 2018. Net Operating Income
after depreciation for this facility will decrease by the
associated depreciation expense of this project. 
IRR/NPV             N/A 
Lifecycle Cost and Savings 
The modernization will eliminate the frequent, costly service calls by the elevator maintenance
contractor, which are currently needed to keep the elevator operating. Elevator # 2 is currently
requiring the most service calls. 

STRATEGIES AND OBJECTIVES 
Restore the reliability of the elevators to provide dependable service for their main users, the
public and BHICC, a highly visible and heavily utilized Port property. 

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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 16, 2016 
Page 5 of 5 
This project provides a contracting opportunity for a local contractor, possibly a small business.
Additionally, the modernized elevators will allow the tenants to operate more efficiently. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Modernize the doors and control systems, but not any motors, nor the cab floor 
on elevator #2. Defer the other modernization elements to a future date. 
Cost Implications: This option reduces the immediate project cost to $750,000, or less. 
Pros: 
(1)  Reduces the likelihood of any interference with other work at the same facility. 
(2)  The work can be completed with less impact to BHICC operations. 
Cons: 
(1)  Reliability may not be fully improved. 
(2)  Requires at least one responsive bidder to a contract solicitation. 
This is not the recommended alternative. 
Alternative 2  Modernize the three elevators according to the consultant's recommendations. 
Cost Implications: The cost of the scope of work, $1,545,000, is covered by the CIP. 
Pros: 
(1)  The Port controls the work to maximum extent possible. 
(2)  The Port maintains proficiency in managing elevator modernization projects. 
Cons: 
(1)  This option presents the greatest opportunity for conflict with work previously 
scheduled at the facility. 
(2)  Requires at least one responsive bidder to the contract solicitation. 
(3)  There is  a slight risk associated with procuring the elevator components in
sufficient time to complete the phase 1 work on or before March 17, 2017. 
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None 


Revised March 28,