PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA                      Item No.         6c 
ACTION ITEM 
Date of Meeting     September 10, 2013 
DATE:     August 28, 2013 
TO:        Tay Yoshitani, Chief Executive Officer 
FROM:    Scott Pattison, Seaport Asset Manager 
Catherine Chu, Capital Project Manager 
SUBJECT:  Terminal 5 and Terminal 91 Berth Maintenance Dredging
(Expense Projects 104840 and U00067) 
Amount of This Request:           $2,700,000    Source of Funds:      General Fund/Ops 
Est. Total Project Cost:              $4,800,000 
Est. State and Local Taxes:            $300,000    Est. Jobs Created:              35 
Net Proceeds to the Port:                    $0 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to (1) delete Terminal 18
from the scope of the Maintenance Dredging Project; (2) add the East Cruise Berth at Terminal
91 to the scope of the Maintenance Dredging Project; (3) prepare plans, specifications and 
estimates, and (4) advertise for bids and award major construction contracts for Terminal 5 Phase
II Maintenance Dredging and Terminal 91 East Cruise Berth Maintenance Dredging for an
estimated cost of $2,700,000. The total project cost (including Terminal 5 Phase I Maintenance
Dredging) is estimated at $4,800,000. 
SYNOPSIS 
The purpose of this project is to restore the berths at Terminal 5 (T-5) and Terminal 91 (T-91)
East Cruise Berth to their designed depths to ensure these terminals remain accessible to deepdraft
cargo and passenger vessels currently in service.  It is necessary to perform maintenance
dredging periodically at the Port's marine terminals because of vessel thrust in the berth areas
and sediment deposits from the Duwamish River. The dredged materials will be disposed of at
approved locations based on consultations with the regulatory agencies. Funds for this project in
the amount of $1,107,000 were included in the 2013 Operating Budget, and additional funds to
complete the project will be included in the 2014 Operating Budget. 


Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 28, 2013 
Page 2 of 6 
BACKGROUND 
Periodic maintenance dredging has been required to meet essential navigational access and
berthing needs at the Port's marine cargo and cruise facilities and such need is expected to
continue due to the greater frequency of deep-draft vessels calling at the Port. Staff continues to
study the causes and rates of the sedimentation in navigation channels and berths and their 
impact on vessel operations. Two leading contributors to the need for ongoing maintenance
dredging are sediment deposits from the Duwamish River and vessel thrust in berth areas. 
On August 14, 2012, the Commission authorized $1,950,000 to develop design documents,
conduct sediment testing and environmental review, obtain permits, and prepare construction
documents for the T-5 and T-18 Maintenance Dredging Project, and to advertise for bids and
award major construction contracts for the first phase of maintenance dredging at T-5.  Since
then, the Port has completed construction of T-5 Phase I maintenance dredging and the design of
T-5 Phase II maintenance dredging.  Bathymetric surveys completed in 2013 indicate that
Terminal 18 maintenance dredging can be deferred another year while we pursue a long-term
programmatic permit at T-18 and the East Waterway.
In May 2013, high spots were discovered at the East Cruise Berth at T-91. To ensure unrestricted
access by cruise ships calling at T-91, Port staff proposes to remove these high spots
prior to the 2014 cruise season. In order to achieve the proposed schedule to complete this work, 
Seaport management authorized $150,000 to fund initial design and permitting efforts.
This request deletes T-18 from the scope of the original project authorized by the Commission
on August 14, 2012, and replaces it with maintenance dredging at the East Cruise Berth at T-91.
PROJECT JUSTIFICATION AND DETAILS 
The proposed project would restore all three containership berths at T-5 and the East Cruise
Berth at T-91 to their designed depths. Doing so will ensure unrestricted access by vessels
currently calling at these terminals.
Scope of Work 
This project includes dredging approximately 10,000 cubic yards of material from all three
existing berths at T-5 to their designed depths.  The designed depths for the South, Center, and
North Berths are -45' Mean Lower Low Water (MLLW), -50' MLLW, and -50' MLLW
respectively. This project also includes dredging approximately 2,000 cubic yards of material at
the Terminal 91 East Cruise Berth to its designed depth of -35' MLLW. In addition, the project 
includes advance maintenance dredging and incidental over-dredging as allowed by the permits.
The dredged material will be disposed of at approved locations based on consultations with the
regulatory agencies comprising the Dredged Materials Management Program (DMMP). If
required by the permit agencies, post-dredged surfaces will be covered with clean sand. 
Staff analyzed the pros and cons of performing the two projects under one construction contract
vis--vis two separate construction contracts, and decided that performing the two projects under

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 28, 2013 
Page 3 of 6 
two construction contracts will allow T-5 work to move forward in advance of T-91 and afford
greater flexibility in developing the T-91 program.  Two separate contracts also allow greater
flexibility to perform the work at each terminal with reduced impact on each terminal's vessel
and terminal operations. 
Schedule 
The following are key milestones for the project if approved by the Commission: 
T-5                             T-91 
Advertise for bids              September 2013                  October 2013 
Award contract               October 2013                   November 2013 
Notice to proceed              December 2013                  January 2014 
Construction completion       February 2014                  February 2014 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary                 Capital          Expense    Total Project 
Previous Authorizations                               $0         $2,100,000      $2,100,000 
Commission authorization for T-5                     $1,950,000 
(Project 104840) on 8/14/2012 
Director level authorization for T-91                        $150,000 
(Project U00067) on 6/13/2013 
Current request for authorization                        $0         $2,700,000      $2,700,000 
Total Authorizations, including this request             $0         $4,800,000      $4,800,000 
Remaining budget to be authorized                    $0                 $0              $0 
Total Estimated Project Cost                           $0         $4,800,000      $4,800,000 
Project Cost Breakdown                        This Request      Previous    Total Project 
Requests 
Construction                                      $1,910,000      $950,000      $2,860,000 
Construction Management                         $100,000       $50,000       $150,000 
Design and Environmental Studies                  $220,000     $690,000       $910,000 
Project Management and Contract Admin           $160,000     $120,000       $280,000 
Permitting                                           $100,000      $200,000        $300,000 
State & Local Taxes (estimated)                     $210,000       $90,000        $300,000 
Total                                                $2,700,000    $2,100,000      $4,800,000 
Of the $4,800,000 anticipated final total project cost, approximately $4,270,000 is related to T-5
and $530,000 is related to T-91. 
Budget Status and Source of Funds 
The 2013 Operating Budget included $1,107,000 for spending related to Terminal 5 Phase II
Maintenance Dredging project. Actual spending in 2013 is expected to be $1,050,000. The

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 28, 2013 
Page 4 of 6 
balance of spending from this authorization is scheduled for 2014 and will be included in the
2014 Operating Expense Budget. 
The source of funds for this project will be the general fund. 
Financial Analysis and Summary 
CIP Category   Expense Project 
Project Type    Renewal and Replacement 
Risk adjusted   N/A 
discount rate 
Key risk          Key risk factors include potential cost overruns due to project time
factors              constraints and/or due to expansion of project scope due to higher than
anticipated volumes of sediment and/or levels of sediment contamination. 
Potential permit delays related to Terminal 91could require T-91 to be
constructed under a compressed schedule, resulting in increased costs
beyond what is discussed in this authorization. 
Project cost     $4,800,000 
for analysis 
Business Unit   Container Operations/Cruise Operations 
(BU) 
Effect on        The estimated current year and future year project costs will have the
business        following effect on Net Operating Income. Depreciation expense will not be
performance    impacted by this project, as this dredging project is an operating expense. 
NOI (in $000's)                 2012 Act   2013 Frct*    2014 Est         TOTAL
Incremental Revenue - - - - 
Incremental OpExp-Container        (154)        (900)            (3,216)             (4,270) 
Incremental OpExp-Cruise -       (150)          (380)          (530)
NOI                         ($154)    ($1,050)     ($3,596)     ($4,800)
Depreciation                          $0           $0           $0           $0
NOI After Depreciation           ($154)     ($1,050)     ($3,596)     ($4,800)
Note*: Actual 2013 spending through July was approximately $560K.
IRR/NPV      N/A 
Lifecycle Cost and Savings 
Maintenance dredging is expected to occur every three to five years at T-5 and T-91 to maintain
the terminals' berths at their design depths.  Including advanced maintenance dredging in this
project will extend the time before future maintenance dredging is needed in these locations,
reducing the total cost of ownership to the Port.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 28, 2013 
Page 5 of 6 
STRATEGIES AND OBJECTIVES 
This project supports the asset preservation objective, ensures Seaport vitality and exhibits
environmental stewardship by: 
Maintaining required navigation depth for deep-draft vessels. 
Ensuring environmental measures are taken to preserve and protect the marine
environment while work is performed and following project completion. 
Including advanced maintenance dredging to reduce the frequency of future dredge
projects. 
TRIPLE BOTTOM LINE 
Economic Development 
Maintaining container and cruise terminals at adequate depths for navigation maintains existing
customer service and encourages business to grow. 
Environmental Responsibility 
Design and project implementation will include practices to avoid and minimize potential
negative environmental effects during dredging. Dredged materials will be disposed of at
approved locations based on consultations  with and decisions of the regulatory agencies
comprising the Dredge Materials Management Program. 
Community Benefits 
The permit process requires notification of neighboring communities, agencies of interest and
appropriate environmental groups. The Muckleshoot and Suquamish Tribes will be consulted
during the permitting process, with the objective of avoiding potential disruption of Treaty
fishing access. 
Small Business 
The Office of Social Responsibility will coordinate with the project manager and the
procurement department to determine opportunities for small business participation in support of
the Resolution No. 3618. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Do nothing. This alternative would  restrict access to the T-5 Container
Terminal and T-91 Cruise Terminal during low tide.  This would delay vessel operations,
compromise customer service, and may result in loss of existing and future customers/vessels at
our port. This alternative is not recommended. 
Alternative 2)  Only dredge at T-5 or T-91 East Cruise Berth. Not dredging at both terminals
would either limit access to the T-5 terminal or to the East Cruise Berth at T-91 with similar
impacts to those listed in Alternative 1. This alternative is not recommended.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 28, 2013 
Page 6 of 6 
Alternative 3)  Proceed with both T-5 and T-91 maintenance dredging projects.  Doing so
would ensure berths at both terminals are able to handle vessels at their full design depths. This
is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
August 14, 2012   The Commission authorized  development of design documents and
preparation of construction documents for maintenance dredging at Terminals 5 and 18 for an
estimated cost of $950,000 and advertisement and award of major construction contracts for the
first phase of Terminal 5 and Terminal 18 Maintenance Dredging Project for an estimated cost of
$1,000,000.