PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4d 
ACTION ITEM 
Date of Meeting    September 27, 2016 
DATE:    September 20, 2016 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Lindsay Pulsifer, Maritime Director 
Tracy McKendry, Senior Manager, Recreational Boating 
Mark Longridge, Capital Project Manager 
SUBJECT:  Replacement of Shilshole Bay Marina Restrooms with Multi-use Customer Service
Facilities (CIP #C800356) 
Amount of This Request:       $893,000   Source of Funds:   General Fund 
Est. Total Project Cost:      $12,000,000 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to perform additional design,
conduct environmental review, solicit additional public and tenant input, prepare necessary
permit submittals, and prepare construction bid documents for the replacement of the Shilshole
Bay Marina restroom and laundry facilities and associated leased space in the amount of
$893,000 for a total design authorization of $1.6 million and a total project cost estimated at
$12 million. 
SYNOPSIS 
The existing restroom and shower facilities at Shilshole Bay Marina (SBM) were built in 1962 as
part of the original marina construction and are at the end of their service life. Evidence of this
includes:
Plumbing and electrical services are failing. 
Ventilation and floor drainage are inadequate. 
Florescent lights do not meet electric codes. 
Electric wall heaters are inefficient and failing. 
Buildings do not meet current energy codes. 
Finishes and tile grout are heavily worn.
In addition, the existing facilities do not meet current ADA standards for showers, doorways,
sinks, mirrors, or water fountains. 

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 20, 2016 
Page 2 of 9 
As result, maintenance requirements continue to increase while repairs are constrained by the
presence of lead paint, asbestos, and the required hazardous materials abatement. In addition,
customers and visitors are negatively impacted since restrooms are closed during repairs. 
In their current condition, Shilshole's restrooms do not adequately meet the needs of moorage
tenants, commercial customers, and marina visitors, who expect suitable and accessible facilities.
In fact, deteriorated restrooms put SBM at a competitive disadvantage when compared to other
local marinas.
The marina industry is anticipating a downturn in boating participation as the baby boomers age
out of boating. To combat this trend, Shilshole is pursuing a long term strategy of creating a
destination marina. A marina that has more assets, amenities and value for the customer, will be
more protected against this expected decline. 
The construction of new restrooms at Shilshole Bay Marina also offers a potential new revenue
and amenity opportunity by expanding the project scope to include a second level with leased 
space. When considering this option, Shilshole staff reached out to various members of the
Northwest Marine Trade Association and found that 11 small businesses were interested in
potential retail or office space at the marina. Other options for a second level include moving the
Port's marina office to one of the 2nd level locations, which would then open up 2,500 square
feet of a highly desirable, leased space in the main marina building. 
BACKGROUND 
Shilshole Bay Marina is the largest marina in Seattle with more than 1,400 moorage slips and an
occupancy rate of approximately 94 percent. Moorage is primarily long-term recreational
moorage, with an additional 8,000 guest moorage visitors annually.  SBM also serves
commercial fishing vessels, tribal vessel owners, summer season cruise line with small vessels
along with the maritime businesses that support them. Vessel sizes ranges from small kayaks to
mega-yachts; however, sailboats fill about 80 percent of slips.
SBM was built in the late 1950s with the first dock opening in 1960. There are five 50-plusyear-old
restrooms that were initially slated to be replaced during the planning phases of the
2006-2008 Shilshole Dock Replacement and Marina Related Projects program.  The restroom
replacement was removed from the plan due to higher-than-anticipated overall project costs. 
Not replacing the deteriorating, multi-purpose restroom facilities has resulted in rising
maintenance and repair costs, and ultimately could negatively affect Shilshole's occupancy rate
and revenue since survey data shows that boaters rank multi-purpose restroom facilities as their
top reason when selecting marinas to visit. 
From the Port of Seattle's 2013 Economic Impact Study, the Port's recreational boating marinas
generated 323 jobs, almost $7.5 million in local purchases; $21.6 million in business revenues
and $1.8 million in state and local taxes, the majority of which is from Shilshole Bay Marina,
which generates gross income of $5.6 million annually. 

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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 20, 2016 
Page 3 of 9 
Port staff conducted extensive project outreach including 17 group and individual meetings with
moorage customers, tenants, liveaboards and dock captains.  Additional feedback was also
collected via a number of surveys, and through a project email. Staff responded to more than 90
individual emails submitted through this outreach email account. 
PROJECT JUSTIFICATION AND DETAILS 
The current restroom facilities are at the end of their useful life. Replacing these with new
customer service buildings will help maintain SBM's current occupancy rate and improve the
level of service expected at this first-class Port facility. 
Project Objectives 
Replace the current restroom facilities at SBM with new customer services buildings that include
restrooms, showers, laundry facilities, and other tenant-use improvements to provide a level of
service above what is currently provided. Incorporate the feedback received from moorage and
business tenants during the individual and public outreach meetings to provide the best user
experience possible. 
Scope of Work 
The initial site plan work concept recommended the replacement of the M1 restroom building in
its current location, and the consolidation of the four remaining restrooms into two customer
service buildings. The consolidated buildings would serve the north and south end of the marina
respectively. However, during a robust outreach effort by Port staff this approach has been
refined to reduce walk times in the North end of the marina, and add the possibility of leasable
space on a second floor of the new facilities. This request incorporates the additional amount to
perform the design of the revised plan. 
Each of the larger buildings (South and Central) would have a footprint of approximately 2,500
square feet and include ADA accessible restrooms, showers, laundry facilities, and other services
for all marina tenants and guests. The newly added North Restroom would be approximately
800sf and include individual unisex restroom and shower facilities. Although consolidated into
fewer buildings the new facilities would significantly increase the number of showers over the
existing configuration, and double the current laundry capacity, both top priorities in outreach 
feedback.
The recommended proposal also includes the addition of a second floor leased area to be
incorporated into each of the larger buildings (South and Central locations shown in the attached
site plan). These would be leased to marine related businesses if possible, and one of the two
could potentially be used for the Port marina offices, freeing up the current marina office
location in the A-1 building for leased space. 
The updated design effort will explore sustainable design features such as renewable energy,
utilization of energy efficient products, water saving or recycling features, along with features or
services that might generate additional revenue. The current plans include water saving fixtures,

Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 20, 2016 
Page 4 of 9 
onsite stormwater management and rooftop photovoltaic panels to offset a significant portion of
the building's electrical use. 
Schedule 
The project consists of two phases: 1) First phase: construction of the new buildings; 2) Second
phase: demolish existing structures. This schedule allows for the continued use of the existing
facilities until the new buildings are available.  Port staff is also considering the feasibility of
repurposing the existing buildings to other uses such as leased storage area, another amenity
requested by business and moorage tenants. 
The current schedule for this project is: 
Remaining design and permitting             9 months     Sept 2016  June 2017 
Bidding, award submittals and NTP           4 months     June 2017  Oct 2017 
Site Construction                        8 months     Oct 2017  June 2018 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                      $5,500,000          $0    $5,500,000 
Previous Authorizations                  $707,000          $0     $707,000 
Current request for authorization              $893,000          $0      $893,000 
Total Authorizations, including this request     $1,600,000          $0    $1,600,000 
Remaining budget to be authorized         $10,400,000          $0   $10,400,000 
Total Estimated Project Cost             $12,000,000          $0   $12,000,000 
Project Cost Breakdown                     This Request       Total Project 
Construction                                     $0          $8,632,000 
Construction Management                     $124,000         $1,111,000 
Design                                   $462,000          $919,000 
Project Management                         $240,000          $386,000 
Permitting                                   $67,000           $129,000 
State & Local Taxes (estimated)                        $0           $823,000 
Total                                       $893,000         $12,000,000 
Budget Status and Source of Funds 
This project was included in the 2016 Capital Plan and related Plan of Finance under CIP
#C800356 SBM Restroom/Service Buildings Replacement for $5,500,000. The current project
budget including the addition of second floors to the larger buildings is $12M, but includes
revenue potential, as described above. 

Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 20, 2016 
Page 5 of 9 
This project will be funded by the Maritime General Fund. Additional alternatives to increase
overall revenue at the facility are being considered.
Financial Analysis and Summary 
CIP Category         Renewal/Enhancement 
Project Type           Renewal & Replacement 
Risk adjusted discount    7.5% 
rate 
Key risk factors             Project schedule could be delayed due to weather or the
need to minimize the impacts of construction to existing
tenants. 
Costs could exceed estimated costs. 
Leasing office space may take longer than anticipated 
Project cost for analysis    $12,000,000 
Business Unit (BU)       Maritime Recreational Boating 
Effect on business       Additional revenue will be generated from leasing the second
performance          floor space. Incremental costs include broker fees, tenant
improvements, and maintenance costs. Depreciation expense,
assuming an asset life of 30 years, is $400K annually. 
NOI (in
$000's)       2018    2019    2020    2021    2022 
Revenue      58     118    122    126    129 
Expenses     (155)    (10)     (11)     (11)     (11) 
NOI after
Depn        (98)     108    111    115    118 
Depreciation    (200)    (400)    (400)    (400)    (400) 
NOI after
Depn       (298)    (292)    (289)    (285)    (282) 

IRR/NPV          Net Present Value is ($9,579,000) 
Lifecycle Cost and Savings 
The existing restrooms at Shilshole Bay Marina have been in place for over 50 years. They have
significantly exceeded the original lifespan expectations.  The new buildings will not have
significant repair costs in the first 10-15 years. The design will take into account the total cost of
ownership when making decisions on materials and finishes. 
STRATEGIES AND OBJECTIVES 
This project supports the Century Agenda strategy of "advancing this region as a leading tourism
destination and business gateway" by providing needed facility improvements to Shilshole Bay
Marina, including building of new leased square footage. 

Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 20, 2016 
Page 6 of 9 
Environmental Stewardship: 
Meet existing environmental water, materials, and energy requirements coincident with
providing adequate number of landside restroom, shower, and laundry facilities for SBM tenants
and visitors. 
This project provides numerous important sustainability opportunities, implementing the Port's
commitment to environmental compliance, innovation, and stewardship. These include the
potential use of locally sourced, recycled, re-used/refurbished materials, inclusion of renewable
and efficient energy systems, and storm water management improvements. 
Business Plan Objectives: 
Provide customers with compelling value. To meet the needs of moorage customers who have
rated replacement of restrooms as the #1 improvement needed for SBM.
This project represents an investment in the Port's current facilities and supports the long-term
vitality of Shilshole Bay Marina as a key asset in the organization's real estate portfolio.  The
addition of leased space on the second floor of two of the buildings also provides economic
development benefits. Outreach to local maritime businesses indicates a significant interest in
commercial space at SBM. 
Community Benefits & Small Business Opportunities: 
Updating the customer service buildings at SBM provides an improved experience for moorage
customers, tenants and the general public that use and visit the facility. 
The project manager will coordinate with the Small Business Team to maximize small business
opportunities as direct contracts or through subcontract opportunities. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Status Quo
Continue to maintain the existing restroom facilities in their current configurations and location.
This would result in continued high maintenance costs and a poor level of service for marina
customers including the lack of ADA compliant facilities.
Cost Implications:
Capital Investment: $0              Revenue Potential: $0/yr 
IRR: N/A                     NPV: N/A 
Pros: 
(1) Lowest initial capital cost 
Cons: 
(1) Poor level of service for customers 
(2) Increased maintenance costs expected as facilities continue to age and wear out 

Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 20, 2016 
Page 7 of 9 
(3) Need for replacement simply deferred 
This is not the recommended alternative. 
Alternative 2 - One Story Replacement 
Replace the current four restrooms with three one story customer service buildings (North, South
and Central) to include showers, restrooms, and laundry facilities (in larger buildings). This
would not allow for revenue opportunities or leased office space in the new facilities.
Cost Implications:
Capital Investment: $7.7M       Revenue Potential: $0/yr 
IRR: N/A                 NPV: ($7.3M) the present value of the project costs 
Pros: 
(1) Lower initial costs without addition of second floor space(s). 
(2) Meets customer needs for facility expansion and replacement. 
(3) Increases fixture counts (toilets, sinks and especially showers) over existing facilities. 
(4) Doubles current laundry capacity. 
(5) Provides facilities expected for a marina of this size and caliber. 
Cons: 
(1) No revenue potential, strictly renewal & replacement. 
This is not the recommended alternative. 
Alternative 3  Add a Second Floor to One Building 
Replace the current four restrooms with three customer service buildings to include showers,
restrooms, and laundry facilities. Include an upper floor on one of the larger buildings 
This would allow for revenue opportunities or leased office space in one of the new facilities.
Cost Implications: 
Alternative 3 Total         2nd Floor Increment 
Capital Investment                        $9.85M                $2.15M 
Revenue Potential                  $57,500 per year          $57,500 per year 
IRR                             (2.04%)               3.00% 
NPV                        ($8.6M)            ($1.3M) 
Payback                    Longer than asset life               31 years 
Pros: 
(1) Lower initial costs without addition of a second floor space to both buildings 
(2) Meets customer needs for facility expansion and replacement. 
(3) Increases fixture counts (toilets, sinks and especially showers) over existing facilities. 

Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 20, 2016 
Page 8 of 9 
(4) Doubles current laundry capacity. 
(5) Provides facilities expected for a marina of this size and caliber. 
(6) Potential to add a marine-related business in the 2,500 sf leased space, providing a 
revenue opportunity and additional amenities for customers. 
Cons: 
(1) Higher initial capital costs per square foot, addition of second floor necessitates
inclusion of an elevator and two stairwells by code, which are higher cost items. 
(2) Revenue potential will not cover all costs, majority of project costs are strictly
renewal & replacement. 
This is not the recommended alternative. 
Alternative 4  Add a Second Floor to Two Buildings 
Replace the current four restrooms with three customer service buildings to include showers,
restrooms, and laundry facilities. Include upper floors on both of the larger buildings. Include
leasable space in one of the new upper floors and move the Port offices to the other.
This alternative takes best advantage of consolidating the building shell and mechanical systems
within fewer buildings, providing a potential cost savings, along with improved services
compared with the existing configuration, providing additional onsite services for tenants and
also maximizing lease revenue opportunities for the Port facility. 
Cost Implications:
Alternative 4 Total         2nd Floor Increment 
Capital Investment                         $12M                $4.3M 
Revenue Potential                  $115,000 per year         $115,000 per year 
IRR                              (.41%)               3.00% 
NPV                        ($10.0M)            ($2.7M) 
Payback                    Longer than asset life              31 years 

Pros: 
(1) Meets customer needs for facility expansion and replacement. 
(2) Increases fixture counts (toilets, sinks and especially showers) over existing facilities. 
(3) Doubles current laundry capacity. 
(4) Provides facilities expected for a marina of this size and caliber. 
(5) Potential to add a marine related business in both 2,500 sf leased spaces, including the
potential for ground level retail space, maximizing revenue opportunity and
additional amenities for customers. 


Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 20, 2016 
Page 9 of 9 
Cons: 
(1) Highest initial capital costs of alternatives considered, addition of second floor
necessitates inclusion of an elevator and two stairwells by code, which are higher cost
items 
(2) Revenue potential will not cover all costs, majority of project costs are strictly
renewal & replacement 
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
Proposed Site Plan 
Computer Slide Presentation 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
Design Authorization request - September 30, 2014  Tabled 
Design Authorization request  January 6, 2015  Approved 











Revised March 28, 2016  pjw