PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6a 
ACTION ITEM 
Date of Meeting     March 11, 2014 
DATE:    March 3, 2014 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Michael Burke, Director Seaport Leasing & Asset Management 
Fred Chou, Capital Project Manager 
SUBJECT:  Terminal 91 Substation Upgrade Project (CIP #C800439) 
Amount of This Request:         $349,000   Source of Funds:       General Fund 
Est. Total Project Cost:          $1,995,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to develop design documents,
execute consultant contracts, apply for permits, and prepare construction documents as part of
the Terminal 91 Substation Upgrade Project for an estimated cost of $349,000. The total project
cost is estimated at $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 and recent investigations, investments to replace Substations 1 and 15,
and equipment upgrades to Substation 14 are necessary.
This memo requests Commission approval for the design development and permitting phase of
the project. Staff anticipates returning to the Commission later this year for construction funding
authorization.
BACKGROUND 
Power to Terminal 91 comes through two main distribution substations located within Terminal
91. They in turn supply power to 14 substations. Some substations and associated equipment
have been identified as approaching the end of their service lives. Reliability and life safety are
among the primary concerns. Through project definition and preliminary engineering/evaluation
and analyses, Substations 1 and 15 need total replacement, whereas Substation 14 requires some
equipment upgrade and replacement. Substation 4 is also in need of replacement but due to its
location relative to Berths 6 and 8, (east side, north end of Pier 90 and within the Berths 6 and 8

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 3, 2014 
Page 2 of 5 
project area) which have been identified as a major redevelopment project under Port's 2014
Capital Plan, substation upgrade work would be incorporated under the berth's redevelopment 
project.  Final location of the replacement substations will be carefully coordinated so they
would not impact future development.
The project was anticipated in the 2014 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 two replacement substations 
Upgrade an existing substation 
Design and construct supporting infrastructure,  such as ductbanks, 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     October 2014 
Advertisement/Bid/Award/Construction           November 2014   December 2015 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                            $0          $0          $0 
Previous Authorizations                   $75,000          $0      $75,000 
Current request for authorization              $349,000          $0      $349,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 3, 2014 
Page 3 of 5 
Total Authorizations, including this request      $424,000          $0      $424,000 
Remaining budget to be authorized         $2,076,000          $0    $2,076,000 
Total Estimated Project Cost              $1,995,000          $0     1,995,000 
Project Cost Breakdown                     This Request       Total Project 
Construction                                     $0         $1,344,000 
Construction Management                      $20,000         $148,000 
Design                                   $220,000          $250,000 
Project Management                          $70,000          $98,000
Permitting                                   $39,000           $39,000 
State & Local Taxes (estimated)                        $0          $116,000 
Total                                       $349,000         $1,995,000 
Budget Status and Source of Funds 
This project was included in the 2014 Draft Plan of Finance under Committed-Division
Approved CIP #C800439 - T91 Substation Upgrades for a total cost of $2,500,000. 
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 by $100K per
year based on a current estimated 20 year useful life 
(actual depreciable life to be determined, but may be
longer) and will reduce Net Operating Income by a
corresponding amount. 
IRR/NPV             The NPV is the present value of the project cost 
($1,995,000).

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 3, 2014 
Page 4 of 5 
Lifecycle Cost and Savings 
A lifecycle cost analysis will identify the 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 
Investigate and incorporate environmentally sustainable components and activities during the
design development phase of the project. 
Community Benefits 
The project manager and the procurement department will coordinate with the Office of Social
Responsibility to determine opportunities for small business participation in support of
Resolution No. 3618. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Do nothing 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. T enant 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
consequences identified in the "do nothing" alternative could also result.  This is not the
recommended alternative.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 3, 2014 
Page 5 of 5 
Alternative 3)  Proceed proactively with design development and permit application phase of
the project and then 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 
Computer slide presentation. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None.