PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       5e 
ACTION ITEM             Date of Meeting    April 23, 2013 

DATE:    April 16, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Rod Jackson, Capital Project Manager, Seaport/Real Estate Project Management 
Rebecca Schwan, Real Estate Manager, Portfolio & Asset Management 
SUBJECT:  Maritime Industrial Center Building A-1 Roof Replacement (CIP #C800571) 
Amount of This Request:  $1,318,000       Source of Funds:    Tax Levy 
Est. State and Local Taxes: $  91,000        Est. Jobs Created:   16 
Est. Total Project Cost:    $1,456,000 
ACTION REQUESTED: 
Request Commission authorization for the Chief Executive Officer to advertise for construction
bids, execute a construction contract, utilize in-house staff to do portions of work, and fund the
construction phase to complete the Maritime Industrial Center Building A-1 Roof Replacement
in an amount not to exceed $1,318,000 for a total estimated project cost of $1,456,000. 
SYNOPSIS: 
This memo requests authorization to proceed with the replacement and construction of a new
roofing system at the Maritime Industrial Center (MIC) Building A-1 located along Ship Canal
and close to Fishermen's Terminal. A-1 is the main building on the site, and it is 100% leased.
The roofing system is at the end of its service life. The final design is complete and the project is 
ready to move into the construction phase. This project was included in the 2013 plan of finance
at a cost of $570,000. The additional $886,000 in funds required for this project will be available
due to the availability of funding from other projects, such as the lower cost of the P-69 North
Apron Corrosion Control project. 
BACKGROUND: 
The MIC Building A-1 was constructed in the early 1930s. It is used as tenant offices and
storage and is currently 100% occupied. The existing built-up roof system covers approximately
21,000 square feet with two layers of existing built-up roofing applied. In 2012, the Port
initiated condition assessments and preliminary design for the MIC A-1 Building. The
assessment determined the roofing system is at the end of its service life.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 16, 2013 
Page 2 of 5 
The Port intends to demolish and replace the existing built-up roofing layer system with a new
built-up roofing layer system that will provide a 25-year warranty life and will include the
reinstallation of skylights at each of the existing openings that were previously sealed off. This
project will also include a new fall restraint system that must be added to the roof per
Occupational Safety and Health Administration (OSHA) rules. On February 5, 2013, the Port
Commission authorized funding for design and permitting of the Maritime Industrial Center
(MIC) Building A-1 roof project. With the design complete, staff requests Commission approval
to proceed with the construction phase of the project. 
PROJECT JUSTIFICATION: 
The proposed project would preserve and extend the life of an important building asset at MIC 
and the revenues associated with the leased space. Deferring or foregoing this work will result in
continued deterioration of 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 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. 
Incorporate environmentally sustainable practices during the project construction. 
Minimize disruptions to facility operations and customers. 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
The scope of work for the MIC roof includes: 
Install a new built-up roofing system that would replace the existing roofing system. 
Install new skylights at existing infill voids. 
Install roof insulation to be in compliance with new building codes. 
Install fall protection and attachments to the roof per OSHA regulations. 
This project will also include environmentally sustainable components and construction
methods as appropriate. 
Schedule: 
Construction on the project is scheduled as follows: 
Commission Approval for Design         February 2013 (Complete) 
Permit/Design Complete               March/April 2013 
Commission Approval for Construction      April 2013 
Advertise for Bids                     April 2013 
Construction                       May 2013 through Oct. 2013

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 16, 2013 
Page 3 of 5 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary:                           Total Project 
Original Budget                                                $0 
Previous Authorizations                                       $138,000 
Current request for authorization                                 $1,318,000 
Total Authorizations, including this request                          $1,456,000 
Remaining budget to be authorized                                  $0 
Total Estimated Project Cost                                  $1,456,000 
Project Cost Breakdown:                   This Request       Total Project 
Construction                              $1,049,000         $1,049,000 
Construction Management                    $113,000         $147,000 
Design                                   $30,000          $41,000 
Project Management                        $25,000        $114,000
Permitting                                  $10,000           $14,000 
State & Local Taxes (estimated)                   $91,000           $91,000 
Total                                    $1,318,000        $1,456,000* 
**The current MIC A-1 Building $1,456,000 estimated project costs increased from the $570,000 
estimated project cost included the 2013 Plan of Finance because the scope of the project increased as a
result of new/better information. According to the 2006 City of Seattle Building Code, the existing two
layers of roofing systems must be demolished and replaced with a new roof. The cost also includes 
reinstalling skylights in existing opening and a new fall restraint system that must be added to the roof per 
OSHA rules. 
Budget Status and Source of Funds: 
This project was included in the 2013 Plan of Finance under CIP #C800571, MIC Building A-1
Roof Replacement Project for $570,000. The additional $886,000 in funds required for this
project will be available due to other projects such as the P69 North Apron Corrosion Control
project coming in at a lower cost than assumed in the 2013 Plan of Finance. 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     N/A 
Key risk factors              Actual cost could exceed current estimates. 
Future revenues from this building could be less
than currently expected. 
Project cost for analysis        $1,456,000 
Business Unit (BU)          Real Estate  Commercial Properties

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 16, 2013 
Page 4 of 5 
Effect on business performance  This project is a renewal and replacement project and
accordingly, this project preserves Net Operating
Income (NOI) rather than creating new NOI. 
NOI generated by the Maritime Industrial Center A-1
building is approximately $275,000 per year excluding
major maintenance and tenant improvement
expenses. 
As a result of this project, annual depreciation expense
will increase by approximately $58,000 per year based
on a 25-year manufacturer's warranty of useful life
resulting in a corresponding decrease in Net Operating
Income After Depreciation. 
IRR/NPV             N/A 
Lifecycle Cost and Savings: 
A lifecycle cost analysis (LCCA) has been 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 the MIC building because of the replacement and installation
of the new roofing system. The lifecycle cost analysis for the building determined the desired
roof design and deemed it appropriate for the facility. The design for the MIC roof used the
lowest appropriate LCCA design as the project replacement design was developed. 
STRATEGIC OBJECTIVES: 
The proposed project supports the Port's Century Agenda to position the Puget Sound region as a
premier international logistics hub by doubling the economic value of the fishing and maritime
cluster. 
ENVIRONMENTAL SUSTAINABILITY: 
Construction implementation will include practices to avoid and minimize potential negative
environmental effects. The project 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.
BUSINESS PLAN OBJECTIVES: 
The mission of MIC is to operate and maintain facilities and services that support the North
Pacific Fishing Fleet and other maritime industries, while working toward breakeven financial
performance. The strategies for accomplishing the mission are to effectively maintain the assets,

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 16, 2013 
Page 5 of 5 
promote environmental stewardship and operate safe facilities. The roof project supports the
mission and strategies by proactively maintaining the assets and preserving the revenue stream. 
TRIPLE BOTTOM LINE SUMMARY: 
Preserving existing assets defers high-impact and high-cost asset replacement, and therefore,
reduces environmental impact while supporting economic vitality by reducing Port costs and
generating construction jobs. Small business opportunities will be reviewed with support from
the Office of Social Responsibility. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1: Increase the maintenance inspections and repair of the built-up roofing system as
continued layer delamination and leaks occur. While postponing the replacement cost, this
alternative allows the continuation of retrogressive deterioration of the roofing system by
increasing maintenance and emergency repair costs for the roofs. This is not the recommended
alternative. 
Alternative 2: Proceed with the project as described to minimize total cost of ownership to the
Port. This will reduce future risks and consequences to the MIC building and internal
appurtenances including tenant and staff disruptions, should a leak in the roofing system occur.
This alternative is recommended for implementation.
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
On February 5, 2013, the Port Commission approved $88,000 for the design and permitting
phase of the MIC Building A-1 Roof Replacement Project (CIP #800571) for a total
authorization of $138,000.