PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       5g 
ACTION ITEM             Date of Meeting    May 14, 2013 

DATE:    May 6, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Rod Jackson, Capital Project Manager, Capital Development 
Kenneth R. Lyles, Sr. Manager, Fishing and Commercial Vessels, Real Estate 
SUBJECT:  Authorization for Design Funding of Fishermen's Terminal Net Shed Building No.
9 Roof Overlay (CIP #C800527) 

Amount of This Request:  $80,000         Source of Funds:    Tax Levy 
Est. State and Local Taxes: n/a             Est. Jobs Created:   n/a 
Est. Total Project Cost:    $498,000 
ACTION REQUESTED: 
Request Commission authorization for the Chief Executive Officer to proceed with design and
preparation of construction documents for the Fishermen's Terminal Net Shed Building No. 9
Roof Overlay Project for an estimated cost of $80,000, bringing the current authorization for this
project to $130,000 for a total estimated project cost of $498,000. 
SYNOPSIS: 
This memo requests authorization to proceed with the design of a new roofing system on 
Fishermen's Terminal Net Shed Building No. 9. The roofing system is at the end of its service
life. Preliminary design is complete and the project is ready to move into the final design phase.
Fishermen's Terminal is the Home Port of the North Pacific Fishing Fleet and the long-term plan
has assumed that net shed storage will continue to be a core function at Fishermen's Terminal. 
Net shed storage is one of the amenities at Fishermen's Terminal that helps retain fishermen as
tenants and is part of the infrastructure that will be required to double the economic value of the
fishing and maritime sectors, as envisioned by the Century Agenda. Therefore, approval of this
design-funding request is not expected to affect the long-term development plan for the terminal.
This project was included in the 2013 Plan of Finance. 
BACKGROUND: 
The Fishermen's Terminal Net Shed No. 9 Building was constructed in 1987. The building is
currently 84% occupied. It is being used as general storage primarily by commercial fishers.
The existing corrugated metal roof covers approximately 12,000 square feet and is
approximately 25 years old. In 2012, the Port initiated condition assessments and preliminary

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 6, 2013 
Page 2 of 5 
design on the Fishermen's Terminal Net Shed No. 9 Building. The assessment determined the
roof system is at the end of its service life. The Port intends to install a new roofing system to
overlay the existing roof that will provide a 20-year warranty life. 
PROJECT JUSTIFICATION: 
The proposed project would preserve important building assets at Fishermen's Terminal; the
revenues associated with the leased space, extend the life of the building structure and minimize
Port liability. Deferring or foregoing this work will result in continued deterioration of the roof
system components. Eventually this could lead to additional leakage, detrimental impacts to
operations, and the need for more costly replacements. In addition, it could lead to loss of rent
and loss of revenues. Proactive asset stewardship is the key to reducing the total cost of
ownership to the Port over time. 
Project Objectives: 
Preserve the structural integrity of the building structure. 
Preserve future revenues from the building. 
Complete project on time and within budget. 
Investigate environmentally sustainable practices during the design and incorporate into the
project design and construction where practical. 
Minimize disruptions to facility operations and customers. 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
The scope of work for the Fishermen's Terminal Net Shed No. 9 Building Roof includes the
evaluation and design for: 
A new roofing system that will overlay the existing corrugated metal roof. 
The installation of access ladders to the roof. 
Fall protection and attachments to the roof. 
Environmentally sustainable components and construction methods as appropriate. 
Schedule: 
Construction on the project schedule is as follows: 
Commission Approval for Design         May 2013 
Permit/Design Complete               Nov/Dec 2013 
Commission Approval for Construction     December 2013 
Advertise for Bids                     Jan/Feb 2014 
Construction                       May 2014 thru Sept 2014

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 6, 2013 
Page 3 of 5 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary:         Capital    Expense     Total Project 
Original Budget                     $0       $0         $0 
Previous Authorizations                $50,000    $0         $50,000 
Current request for authorization           $80,000    $0          $80,000 
Total Authorizations, including this request   $130,000   $0          $130,000 
Remaining budget to be authorized         $368,000   $0         $368,000 
(pending design recommendations) 
Total Estimated Project Cost            $498,000   $0         $498,000 
Project Cost Breakdown:              This Request       Total Project 
Construction                       $0              $311,000 
Construction Management             $30,000          $56,000 
Design                          $22,000          $32,000 
Project Management                 $24,000         $68,000
Permitting                         $4,000           $4,000 
State & Local Taxes (estimated)           $0              $27,000 
Total                             $80,000           $498,000* 
*The current Fishermen's Terminal Net Shed No. 9 $498,000 total estimated project costs have decreased from
$606,000 total estimated project costs in the 2013 Plan of Finance at the time of the design funding authorization
request. This is because the existing roof will be overlaid with a new roofing system rather than demolishing and
replacing it. The existing fall restraint system will be upgraded to accommodate the new roofing system. 
Budget Status and Source of Funds: 
This project was included in the 2013 Plan of Finance under CIP #C800527, Fishermen's
Terminal Net Shed No. 9 Roof Overlay Project for $606,000; however, preliminary costs show a
lower total cost of approximately $498,000. This project will be funded by the tax levy. 
Financial Analysis and Summary: 
CIP Category             Renewal/Enhancement 
Project Type              Renewal/Replacement 
Risk adjusted discount rate     NA 
Key risk factors              Actual cost could exceed current estimates. 
Future revenues from buildings could be less than
currently expected. 
Project cost for analysis        $498,000 
Business Unit (BU)          Real Estate  Harbor Services  Fishermen's Terminal 
Effect on business performance  This project is a renewal and replacement project and,
accordingly, preserves Net Operating Income (NOI)
rather than creating new NOI.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 6, 2013 
Page 4 of 5 
NOI generated by Net Shed No. 9 is approximately
$92,000 per year excluding major 
maintenance/compliance expenses.** 
As a result of this project, annual depreciation expense
will increase by approximately $24,900 per year based
on a 20-year manufacturer's warranty of useful life
resulting in a corresponding decrease in Net Operating
Income After Depreciation. 
IRR/NPV             N/A 
Note**: Net Shed 9, including this roof replacement, expected future electrical upgrades, and the code compliance
project is expected to generate approximately a 8.3% return over the next 25 years. 
Lifecycle Cost and Savings: 
During final design, a lifecycle cost analysis (LCCA) will continue to be developed to identify
the lowest total cost of ownership for the replacement roofing system. Annual Operating and
Maintenance costs for the roof are forecasted to decrease for Net Shed No. 9 because of the
replacement and installation of the new roofing system. The LCCA for the building
preliminarily determined which of the roof design options were appropriate for the facility. The
design for Fishermen's Terminal Net Shed No. 9 Roof will use the desired LCCA design option
as the project replacement design is developed. 
STRATEGIC OBJECTIVES: 
This project supports the Port's Century Agenda strategy to "Position the Puget Sound region as
a premier international logistics hub" and the objective of "doubling the economic value of the
fishing and maritime cluster industries" by: 
Investing in and preserving a valuable Port asset. 
Continuing to provide fishermen with needed net shed storage space for their gear/materials
in close proximity to their vessels and business. 
Maintaining the long-term revenue generating capability of the Fishermen's Terminal Net
Shed Building No. 9. 
Fulfilling lease commitments and obligations to the Port's tenants. 
ENVIRONMENTAL SUSTAINABILITY: 
Construction implementation will include practices to avoid and minimize potential negative
environmental effects. The project has identified construction and maintenance methods,
materials, and practices for effective roof replacement work while avoiding release of deleterious
materials to the environment. Timely asset preservation will extend the service life of the
existing infrastructure, as an alternative for avoiding more environmentally disruptive and
resource/materials consumptive large-scale structure replacement actions.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 6, 2013 
Page 5 of 5 
BUSINESS PLAN OBJECTIVES: 
The mission of Fishermen's Terminal is to operate and maintain facilities and services that
support the North Pacific Fishing Fleet and other maritime industries, while working toward
break-even financial performance for the property as a whole. The project supports the Port's
Century Agenda goal of doubling the economic value of the fishing and maritime industries by
providing fishermen and other tenants with needed storage space in close proximity to their
vessels and business.
Dry locker, or net shed, storage is an important feature and service that Fishermen's Terminal 
provides to our commercial fishing customers. These customers rely on covered, enclosed
storage facilities for storing weather-sensitive mechanical equipment, gear or other types of
property used in the fishing industry and in the sustainability of their respective fishing vessels.
The majority of the customers who lease space in Net Shed No. 9 are small independent fishers.
Having their equipment, gear, and commodities close at hand to the vessel is important. 
TRIPLE BOTTOM LINE SUMMARY: 
Preserving existing assets defers high-impact and high-cost asset replacement, and therefore,
reduces environmental impact and supports economic vitality by reducing Port costs and
generating construction jobs. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1: Increase the maintenance inspections and repair of the corrugated roofing system
as continued peeling, flaking, layer delamination, and leaks appear. While postponing the
replacement costs, this alternative allows the continuation of retrogressive deterioration of the
roofing system by increasing maintenance and emergency repair costs for the roof. This is not
the recommended alternative since the roof is at the end of its service life. 
Alternative 2: Proceed with the design and replacement of the corrugated roof system. This will
reduce future risks and consequences to the building and internal appurtenances, including tenant
and staff disruptions, should a leak in the roofing system occur. This alternative is
recommended.
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
On February 5, 2013, staff presented and requested design funds for both the Maritime Industrial
Center (MIC) Building A-1 Roof replacement project (CIP #C800571) and the Fishermen's
Terminal Net Shed Building No. 9 (CIP #C800527). Commission approved the MIC roofing
project but postponed the Fishermen's Terminal Net Shed Building No. 9 item.