5b
PORT OF SEATTLE MEMORANDUM COMMISSION AGENDA Item No. 5b ACTION ITEM Date of Meeting December 11, 2012 DATE: December 3, 2012 TO: Tay Yoshitani, Chief Executive Officer FROM: Beth Britz, Marine Maintenance Project Manager SUBJECT: Deferred Maintenance P66 Bell Street Sky Bridge Repaint (Project #104774) Amount of This Request: $ 60,000 Source of Funds: General Fund Est. State and Local Taxes: $ 43,000 Est. Jobs Created: 6 Est. Total Project Cost: $ 500,000 ACTION REQUESTED: Request Commission approval to increase the project budget authorization by $60,000 for the Pier 66 Bell Street Sky Bridge Repainting Deferred Maintenance project for a new total project budget of $500,000. SYNOPSIS: On April 10, 2012, Commission authorized $440,000 for total project costs to repaint the Pier 66 (P66) Bell Street Sky Bridge. At the time of Commission authorization, the work was anticipated to begin in August 2012 with a contractor responsible for the preparation and repainting of the surface, staging and permits. The Port would be responsible for the BNSF Railway permits and flagger for an estimated 15 days. The Port would also be responsible for all project and construction management activities and maintenance support as required. The construction contract was executed with Purcell Painting on September 17, 2012, and the contractor began work on October 22, 2012. We are requesting additional funds to add contingency into the project budget to cover increased costs resulting from changes since project authorization. This project is expense funded and must be completed within the 2012 budget year. Funds are available due to lower costs for other deferred maintenance projects. The project costs have increased to cover the non-contractor-specific charges related to the unforeseen conditions in the field that resulted in additional design, flagging, and Port soft costs. COMMISSION AGENDA Tay Yoshitani, Chief Executive Officer December 3, 2012 Page 2 of 4 BACKGROUND: The Sky Bridge at Bell Street was constructed as part of the Central Waterfront Project in August 1996. The paint type used on the bridge has a typical life span of approximately ten years. The annual inspections have shown an increase in deteriorated conditions, blistering and flaking. In 2007 the Seattle Department of Transportation (SDOT) noted in their inspection report, "The paint is starting to show wear." with a recommendation to consider painting in the next five years. The 2010 SDOT report lists several areas of flaking, rust and paint failure. A 2012 Port engineering inspection revealed steel primary members affected by corrosion, showing some bubbling and chipping of paint. In some locations, the washers have lost all coating. As each year passes, additional areas of rust and deterioration are noted. $440,000 was allocated in the 2012 Deferred Maintenance budget to repaint the bridge. PROJECT JUSTIFICATION: The Sky Bridge serves as a safe access to and from the waterfront over Alaskan Way and the railroad tracks. The Sky Bridge also provides access for the community to use the roof top park plaza area and the Port's Bell Street Pier facility. Removal of the rust and corrosion, preparing the surface to bare metal, and providing an approved primer and new paint coat will extend the usable life of the bridge as well as improve its appearance. The re-painting of the bridge has been deferred for several years due to budget constraints and has reached a point of urgent attention. With each year, more areas of flaking, bubbling, rust, and peeling have been observed. This deterioration exposes the metal to the elements and shortens the metal's useful life. COMMISSION AGENDA Tay Yoshitani, Chief Executive Officer December 3, 2012 Page 3 of 4 FINANCIAL IMPLICATIONS: Budget/Authorization Summary: Original Budget Deferred Maintenance Authorization $440,000 Previous Authorizations $0 Current request for authorization $60,000 Total Authorizations, including this request $500,000 Remaining budget to be authorized $0 Total Estimated Project Cost $500,000 Initial Project Cost Breakdown Construction $334,000 Design $12,000 Construction Management $25,000 Rail Road permits/logistics $25,000 Permitting $6,000 State & Local Taxes (estimated) $38,000 Total $440,000 Revised Project Cost Breakdown: This Request Total Project Construction $0 $273,760 Design $12,240 $24,240 Construction Management $17,760 $80,000 Rail Road permits/logistics $25,000 $73,000 Permitting $0 $6,000 State & Local Taxes (estimated) $5,000 $43,000 Total $60,000 $500,000 The authorized project cost breakdown estimated $334,000 for construction. The revised breakdown shown above has been adjusted based on the executed construction contract, and construction contingency. There is a transfer of $60,000 of the approved construction costs from construction into the other project cost catagories to cover costs that were higher than the original estimate. Budget Status and Source of Funds: This Sky Bridge Repainting project was included in the 2012 Real Estate Operating Budget in the amount of $440,000 described as Deferred Maintenance Paint Bell Street Bridge. The additional $60,000 required to complete the project is available due to under spending within the 2012 Deferred Maintenance Real Estate budget. Approval of the requested additional $60,000 brings the total authorized budget to $500,000. This project will be funded from the General Fund. COMMISSION AGENDA Tay Yoshitani, Chief Executive Officer December 3, 2012 Page 4 of 4 Financial Analysis and Summary: CIP Category N/A Project Type Deferred Maintenance - Expense Project Risk adjusted discount N/A rate Key risk factors The project schedule could be delayed due to project complexity, weather, and to accommodate the railway, cruise, and conference center schedule. This risk will be partially mitigated with a BNSR Flagger and coordination with the railway schedule. Material costs are subject to price fluctuations. Project cost for analysis $500,000 Business Unit (BU) Portfolio Management Real Estate Division Effect on business This is an expense project. Therefore, operating expenses in 2012 performance will include this project in the amount of $500,000. The project was included in the 2012 Operating Expense Budget. As a result, Net Operating Income (NOI) will remain in line with the 2012 Budget. NOI (in $000's) 2012 2013 2014 2015 2016 NOI ($500) $0 $0 $0 $0 Depreciation $0 $0 $0 $0 $0 NOI After Depreciation (500) $0 $0 $0 $0 IRR/NPV NPV (in $000's) ($500) OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: None PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: April 10, 2012: Commission approved $440,000 to repaint the P66 Bell Street Sky Bridge. November 22, 2011: Commission approved the 2012 Deferred Maintenance program for 2012.
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