PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4a 
ACTION ITEM 
Date of Meeting     March 10, 2015 
DATE:    March 3, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Michael Burke, Director Seaport Leasing and Asset Management 
Fred Chou, Capital Project Manager 
SUBJECT:  Terminal 91 Substation Upgrade Project (CIP #C800439) 
Amount of This Request:        $1,571,000   Source of Funds:       General Fund 
Est. Total Project Cost:          $1,995,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to advertise for construction
bids, execute a construction contract, and fund the implementation phase of the Terminal 91
Substation Upgrade Project for an estimated cost of $1,571,000, bringing the total authorized
amount to $1,995,000. 
SYNOPSIS 
Terminal 91 is an important regional center supporting marine and marine related businesses.
Current uses include vessel moorage, cold storage, bulk storage, vessel outfitting and
maintenance, maritime related manufacturing, cruise operations and other activities. Reliable
and safe electrical power infrastructure meeting operational and tenant needs is essential. Based
upon prior assessments, recent investigations and additional design development, investments to
replace Substations 1 and equipment upgrades to Substation 14 and 15 are necessary.
This memo requests Commission approval for the construction/implementation phase of the
project.
BACKGROUND 
Power to Terminal 91 comes through two main distribution substations located within Terminal
91. They in turn supply power to fifteen (15) substations. Three (3) substations and associated
equipment are unreliable and they are approaching the end of their service lives. Through
project definition and preliminary engineering/evaluation and subsequent analyses, Substations 1
needs total replacement, whereas Substations 14 and 15 require some equipment upgrade and
replacement to improve reliability and life safety. The design team evaluated and coordinated
the final location of the replacement substation and substation upgrade components, allowing

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 3, 2015 
Page 2 of 5 
flexibility for future development. Staff is wrapping up the design development phase of the
project and will soon be ready for construction contract advertisement.
The project was anticipated in the 2015 Plan of Finance as a capital expenditure. 
PROJECT JUSTIFICATION AND DETAILS 
The project will replace and upgrade Terminal 91 substations/substation equipment at the end of
their service lives. This renewal and enhancement project would protect and maintain the longterm
revenue stream of the facility.
Project Objectives 
Replace existing substations and equipment with the most cost effective and sustainable
solution taking into account full lifecycle costs and total costs of ownership and
environmental performance 
Create a design that allows for safe and easy maintenance, and easy future
expansions/replacement
Minimize construction impacts to terminal operations and existing tenants 
Complete project within budget and schedule
Scope of Work 
The work scope of this project includes: 
Design and construct a replacement substation 
Upgrade two existing substations 
Design and construct supporting infrastructure, such as duct banks, conduits, and
cabling to and from the substations 
Full commissioning of the systems to ensure functionality and safety 
Schedule 
Start           Finish 
Commission Authorization for Design              March 2014      March 2014 
Design                                  April 2014      March 2015 
Advertisement/Bid/Award/Construction              April 2015       April 2016 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                      $1,995,000          $0    $1,995,000 
Previous Authorizations                  $424,000          $0     $424,000 
Current request for authorization            $1,571,000          $0    $1,571,000 
Total Authorizations, including this request     $1,995,000          $0    $1,995,000

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 3, 2015 
Page 3 of 5 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost              $1,995,000          $0     1,995,000 
Project Cost Breakdown                     This Request       Total Project 
Construction                               $1,269,000         $1,269,000 
Construction Management                     $128,000         $148,000 
Design                                    $30,000          $325,000 
Project Management                          $28,000          $98,000
Permitting                                      $0           $39,000 
State & Local Taxes (estimated)                   $116,000          $116,000 
Total                                      $1,571,000         $1,995,000 
Budget Status and Source of Funds 
This project was included in the 2015 Plan of Finance as Committed CIP #C800439 - T91
Substation Upgrades for a total cost of $2,058,000, including $424,000 authorized in the prior
year funding. 
This project will be funded by the General Fund. 
Financial Analysis and Summary 
CIP Category             Renewal/Enhancement 
Project Type              Renewal & Replacement 
Risk adjusted discount rate     N/A 
Key risk factors             Project costs could exceed current estimates. 
Project cost for analysis        $1,995,000 
Business Unit (BU)          Seaport Industrial Properties 
Effect on business performance   No incremental operating revenue is directly associated 
with this project. Project preserves Terminal 91
revenue (from multiple lines of business). 
Incremental savings on maintenance expense, if any, is
not yet known. 
This project will increase depreciation for the first 25
years by approximately $72K per year based on a 25-
year useful life for the electrical components and a 50-
year useful life for the infrastructure and will reduce
Net Operating Income after Depreciation by a
corresponding amount. 
IRR/NPV             The NPV is the present value of the project cost
($1,995,000).

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 3, 2015 
Page 4 of 5 
Lifecycle Cost and Savings 
The project implements lowest total cost of ownership for the replacement substations and
equipment while balancing environmental performance. Annual operating and maintenance
costs for the new substations and equipment are expected to decrease.
STRATEGIES AND OBJECTIVES 
This project supports the Port's Century Agenda to position the Puget Sound region as a premier
international logistics hub to double the economic value of the fishing and maritime cluster, and
be the greenest and most energy efficient port in North America by: 
Investing in and preserving a valuable Port asset. 
Maintaining the long-term revenue generating capability of Terminal 91. 
Reducing maintenance by replacing old, outdated equipment with energy efficient
equipment and controls. 
TRIPLE BOTTOM LINE 
Economic Development 
Replacing and upgrading the substations would invest and protect Port assets and maintain the
expected service life of the substations, jobs, commerce, and revenues. 
Environmental Responsibility 
During the early design phase, designers and project managers identified sustainable design
goals that improved environmental performance using the sustainable design checklist as a
guide. Environmentally sustainable components and activities were included in final design and
will be implemented during the construction phase of the project. 
Small Business Participation 
The project manager and the procurement department will continue to coordinate with the Office
of Social Responsibility to maximize opportunities for small business participation in support of
Resolution No. 3618. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)    Remain status quo  and replace substations/substation equipment and/or
components after they fail. The risks of waiting until the equipment or components fail are that
emergency repairs could take a long time to complete due to parts/equipment availability and
type of work. Worker safety issues could increase significantly as the equipment ages and passes
beyond its service life. Tenant and operation impacts would be more significant compared with
planned replacement and/or upgrade. This is not the recommended alternative. 
Alternative 2)  Delay the replacement and upgrade for one to two years. The substations and
the associated equipment identified are reaching the end of their service lives.  Risks and

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 3, 2015 
Page 5 of 5 
consequences identified in the "status quo" alternative could also result.  This is not the
recommended alternative. 
Alternative 3)  Proceed proactively and complete construction as per project schedule. This
would reduce future risks of equipment failure, reduce the risk of emergency repair costs, and
tenant related impacts. This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
PowerPoint Slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
March 11, 2014  Commission authorized $349,000 design funding for the Terminal 91
Substation Upgrade Project.