PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      5b 
ACTION ITEM 
Date of Meeting     January 7, 2014 
DATE:    December 20, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Rod Jackson, Capital Project Manager 
Kenneth R. Lyles, Sr. Manager, Fishing and Commercial Vessels, Real Estate 
Rebecca Schwan, Real Estate Manager, Portfolio & Asset Management 
SUBJECT: Fishermen's Terminal Net Shed #9 Roof Overlay (CIP #C800527)  and
Fishermen's Terminal C-2 Nordby HVAC and Roof Replacement (CIP #C800344) 
Fishermen's    Fishermen's Terminal C-2
Terminal Net Shed   Nordby HVAC and Roof
#9 Roof Overlay        Replacement 
Amount of This Request:            $171,400           $2,140,600 
Source of Funds                  Tax Levy            Tax Levy 
Estimated Total Project Cost          $301,400 $281,000        $2,438,600  $3,030,000
Estimated State and Local Taxes        $21,120            $170,880 
Estimated Jobs Created               3                30 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to advertise for construction
bids, execute construction contract, and fund the construction phase to complete:  (1) the
Fishermen's Terminal Net Shed #9 Roof Overlay in an amount not to exceed $171,400 of a total
estimated project cost of $301,400; and (2) the Fishermen's TerminalC-2 Nordby HVAC and
Roof Replacement Project in an amount not to exceed $2,140,600 for a total estimated project
cost of $2,438,000. The total amount requested for both projects is $2,312,000 and the total cost
of both projects is $2,740,000. 
SYNOPSIS 
Earlier this year, the Port Commission authorized funding for design and permitting of $80,000
for the Fishermen's Terminal Net Shed #9 Project and $223,000 for the Fishermen's Terminal 
C-2 Nordby HVAC and Roof Replacement (C-2 Nordby) Project in separate actions. As a result
of work conducted during the design phases for these projects, staff proposes to combine the
construction efforts of the two projects into a single construction contract to achieve cost savings 
to the Port of approximately $125,000. .
With the final designs complete and permits in hand, Commission approval is requested to
proceed with the construction phase of the projects. This includes advertising for construction
bids, execution of a major construction contract, and all other work necessary to complete the

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 20, 2013 
Page 2 of 8 
projects. The funds requested reflect the information gathered during the final design phase of
these projects. 
BACKGROUND 
Fishermen's Terminal, located on Salmon Bay, is a regional center for maritimeactivity. It  is
the homeport of the North Pacific Fishing Fleet and is one of the few working terminals in the
United States with public access. Current long term planning assumes that Net Shed #9 and C-2
Nordby will continue to be essential at Fishermen's Terminal.  In 2008, the Port initiated a
comprehensive Condition Assessment study of all assets at Fishermen's Terminal including the
Net Shed #9 and the C-2 Nordby Buildings. The assessment determined that the corrugated
roofing system at Net Shed #9 and the built-up roofing system and HVAC at C-2 Nordby were at
the end of their service lives.
Net Shed #9 was constructed in 1987. T his 12,000 square foot Roof Overlay project involves the
membrane overlay installation of roofing PVC to protect the existing steel corrugated roof. This
new roofing overlay system will provide a 20-year warranty life. The building is currently 84%
occupied. Recent inspections of Net Shed #9 revealed the protective coating on the roofing
system had reached the end of its service life. Rusting of varying degrees is clearly visible at
gutters and other areas.  If left alone, continued corrosion and rust will distress the roofing
system, resulting in more costly structural repairs or replacements in the future.
The C-2 Nordby building was built in 1954 and covers approximately 23,000 square feet. It has
HVAC and roofing that have exceeded design life. Recent inspections of C-2 Nordby revealed
the built-up roofing system has failed, allowing major leaks into tenant spaces below. The
building is currently 96% occupied. It is being used primarily by businesses associated with the 
maritime industry. The building houses one of Fishermen's Terminals largest multi-use tenants,
Inner Sea Discoveries LLC. They currently lease over 6,000 square feet of office space in the C-
2 Nordby Building, over 4,000 square feet of warehouse and net shed space in other buildings
and have moored between seven to eight cruise vessels at Fishermen's Terminal over the past
few years. Another tenant in the building is Inland boatmen's Union of the Pacific, who lease
5,000 square feet of office space and have been in the building for fourteen years. Other tenants
include marine insurance, maritime law, and Crane & Mitchell CPAs accounting firm, all of
whom support the commercial fishing fleet. Current long-term planning assumes that C-2
Nordby will continue to be a core function at Fishermen's Terminal. 
Inspections also verified the HVAC system is not operating efficiently and must be replaced. It
would be less costly to the Port to replace both the HVAC and the roof at the same time. If left
alone, leaks will continue and become more costly to repair in the future. This new roofing
system will provide a 25-year life and the HVAC system will provide a 20-year warranty life.
Maritime office and tenant space is one of the terminal's assets that helps retain maritime and
commercial-fishing-related businesses as tenants and is part of the infrastructure that will be
required to double the economic value of the fishing and maritime sectors, as envisioned by the
Century Agenda. Therefore, approval of this construction-funding request is not expected to

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 20, 2013 
Page 3 of 8 
affect any long-term development plans for the terminal. These projects were included in the
2014 plan of finance.
PROJECT JUSTIFICATION AND DETAILS 
The proposed project would preserve revenues associated with the leased space in these
important building assets at Fishermen's Terminal, extend the life of the building structures, and
minimize Port liability. Deferring or foregoing this work will result in continued deterioration of
Roofing and HVAC system components. Eventually this could also lead to additional failures,
detrimental impacts to operations, and the need for more costly replacements. In addition, it
could lead to loss of rent and revenues. Proactive asset stewardship is the key to reducing the
total cost of ownership to the Port over time. 
Project Objectives 
Preserve the structural integrity of the building structure. 
Preserve future revenues from the building. 
Complete project on time and within budget. 
Administer environmentally sustainable practices during construction where practical. 
Minimize disruptions to facility operations, tenants, and customers. 
Scope of Work 
The scope of work for the Net Shed #9 Project will include: 
Installation of PVC membrane to overlay to the existing steel corrugated roof. 
A new fall protection system. 
A new security ladder for access by Port personnel. 
The project will also use environmentally sustainable components and construction
methods. 
The scope of work for the C-2 Nordby Building HVAC and Roof Replacement Project will
include the replacement and installation of: 
A new energy efficient HVAC system. 
A new energy-efficient built-up roofing system with additional insulation. 
New fall protection system and attachments in required areas. 
A new security ladder for access to the roof by Port personnel. 
The project will also use environmentally sustainable components and construction
methods. 
Schedule 
The two projects will be closely coordinated and bid out as one major construction contract.
Construction schedule below:

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 20, 2013 
Page 4 of 8 
Commission Approval for Design         Net Shed #9 - May 2013 
C-2 Nordby - July 2013 
Permit/Design Complete               December 2013 / January 2014 
Commission Approval for Construction      January 2014 
Advertise for Bids                     February 2014 
Construction                       May 2014 through October 2014 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary          Net Shed #9    C2 Nordby     Total
Capital        Capital       Project 
Original Budget                            $0            $0        $0 
Previous Authorizations                  $130,000       $298,000    $428,000 
Current request for authorization              $171,400      $2,140,600  $2,312,000 
Total Authorizations, including this request      $301,400      $2,438,600  $2,740,000 
Remaining budget to be authorized               $0           $0        $0 
Total Estimated Project Cost               $301,400      $2,438,600  $2,740,000 
Project Cost Breakdown:                         Net Shed #9   Net Shed #9 
This Request   Total Request 
Construction                                     $126,235      $221,980 
Construction Management                          $12,323      $21,670 
Design                                         $4,778      $24,420 
Project Management                               $5,067       $8,910
Permitting                                         $1,877       $3,300 
State & Local Taxes (estimated)                         $21,120      $21,120 
Total                                            $171,400      $301,400 
Project Cost Breakdown:                         C-2 Nordby    C-2 Nordby 
This Request   Total Request 
Construction                                    $1,573,474    $1,796,020 
Construction Management                          $155,706     $175,330 
Design                                        $177,360     $197,580 
Project Management                              $50,996      $72,090
Permitting                                        $12,184      $26,700 
State & Local Taxes (estimated)                        $170,880     $170,880 
Total                                           $2,140,600    $2,438,600

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 20, 2013 
Page 5 of 8 
Budget Status and Source of Funds 
FT Net Shed #9 Roof Overlay Project 
This project was included in the 2014 Plan of Finance under CIP #C800527, FT Net Shed 9 Roof
Replacement for a total cost of $498,000 (including actual spending in 2012 and forecasted
spending in 2013).
FT C-2 Nordby HVAC and Roof Replacement 
This project was included in the 2014 Plan of Finance under CIP #C800344, FT C-2 Nordby
Roof & HVAC for a total cost of $2,001,000 (including forecasted spending in 2013). The
additional $438,000 required to fund this project will come from below budgeted spending on
the Net Shed 9 Roof and less spending on CIP C800243 Preliminary Planning. 
Both projects will be funded by the tax levy. 
Financial Analysis and Summary 
CIP Category             Renewal/Enhancement 
Project Type              Renewal & Replacement 
Risk adjusted discount rate     NA 
Key risk factors             Actual costs could exceed the current estimates. 
Future revenues from the buildings could be less than
currently expected. 
Net Shed #9 Roof 
Project cost for analysis        Net Shed #9 Roof $301,400 
Business Unit (BU)          Harbor Services Group  Fishing & Commercial 
Effect on business performance  This project is a renewal and replacement project and,
accordingly, this project preserves Net Operating Income
(NOI) rather than creates new NOI. 
Preserves Net Shed 9 Net Operating Income of
approximately $92,000 per year excluding major
maintenance/compliance expenses.** 
Increases depreciation expense by approximately $15,070
per year based on a 20-year useful life for the roof. 
IRR/NPV             The NPV is the present value of the project cost. 
Note**: Net Shed 9, including this roof replacement, expected future electrical upgrades and the
code compliance project is expected to generate approximately an 8.1% return over the next25 
years.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 20, 2013 
Page 6 of 8 
C-2 Nordby Building Roof and HVAC 
Project cost for analysis        C-2 Nordby Building Roof and HVAC $2,438,600 
Business Unit (BU)          Real Estate  Commercial Properties 
Effect on business performance  This project is a renewal and replacement project and, 
accordingly, this project preserves Net Operating Income
(NOI) rather than creates new NOI. 
Preserves Fishermen's Terminal Building C-2 Net
Operating Income of about $117,000 per year excluding
major maintenance and tenant improvement expenses. 
Increases Depreciation Expense approximately $54,000 
per year based on a 25-year useful life for the roof and a
20-year useful life for the HVAC system. 
IRR/NPV             The NPV is the present value of the project cost. 
Lifecycle Cost and Savings 
Annual Operating and Maintenance costs for the Net Shed #9 and the C-2 Nordby HVAC and
roof are forecasted to decrease because of the installation of the new roofs and the HVAC
system. The lifecycle cost analysis for the two systems determined which of the roof overlay
and HVAC/roof-replacement system design options were appropriate for the facility. 
STRATEGIES AND OBJECTIVES 
This project supports the Port's Century Agenda strategies by aligning with the Port's
commitment to be the nation's leading green and energy-efficient port. Upon completion, these
Roofing projects will, help 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 valuable Port assets. 
Maintaining the long-term revenue-generating capabilities of the Net Shed #9 and C-2
Nordby Buildings. 
Providing fishermen and other moorage customers close proximity to maritime-supported
businesses within Net Shed #9 and the C-2 Nordby Buildings. 
Maintaining the long-term revenue-generating capability of the Net Shed #9 and C-2
Nordby Buildings. 
Reducing overall energy consumption at the facility by replacing old, outdated equipment
with energy-efficient equipment and controls at the C-2 Nordby Building. 
Fulfilling lease commitments and obligations to the Port's tenants. 
The mission of Fishermen's Terminal is to operate and maintain facilities and services such as
Net Shed #9, which support the North Pacific Fishing Fleet and other maritime industries, while
working toward break-even financial performance for the properties as a whole. Dry locker or
net shed storage is an important service Fishermen's Terminal provides to our commercial

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 20, 2013 
Page 7 of 8 
fishing customers.  These customers rely on covered, enclosed storage facilities for storing
weather-sensitive mechanical equipment, gear or other types of property used in the fishing
industry and in the sustainability of their respective fishing vessel operations. The majority of
the customers who lease space in Net Shed #9 are small, independent fishers. Having their
equipment, gear, and commodities close to their vessel is important. 
TRIPLE BOTTOM LINE 
Economic Development 
Preserving existing assets defers high-impact and high-cost asset replacement and reduces
environmental impacts while supporting economic vitality by reducing Port costs and generating
construction-related jobs.  The proposed construction methods will have minimal noise and
traffic impact to the surrounding communities.
Environmental Responsibility 
This project will include energy efficient HVAC equipment and roofing materials, recycling of
demolished and other sustainable materials, and products relative to indoor environmental
quality.  Construction implementation will include practices to avoid and minimize potential
negative environmental effects.  The project has identified construction and maintenance
methods, materials, and practices for effective roof overlay including HVAC and roof
replacement work while avoiding release of deleterious materials to the environment. Timely
asset preservation will extend the service life of the existing infrastructures, as an alternative for
avoiding more environmentally disruptive and resource/materials consumptive large-scale
structure replacement actions. 
Community Benefits 
The project team worked with the Office of Social Responsibility (OSR) in determining
opportunities for participation by small businesses on this project as described in small business
Resolution  No.  3618.  Preserving existing assets defers high-impact and high-cost asset
replacement and therefore reduces environmental impacts. The proposed construction methods
will have minimal noise and traffic impact to the surrounding communities.
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Doing nothing increases the maintenance inspections and repair of Net Shed #9
and the C-2 Nordby Built-Up Roofing Systems as they continue to deteriorate and leaks appear
on the roofs. Costs are increased for the C-2 Nordby HVAC system as cooling and heating is
continually degenerating. This is not the recommended alternative since the roof and HVAC
systems are at the end of their service lives. 
. 
Alternative 2)  Proceed with the construction of the Net Shed #9 Overlay and the construction
and replacement of the C-2 Nordby Roof and HVAC systems. This will reduce future risks and
consequences to the two buildings and internal appurtenances, including tenant and staff
disruptions caused by roof and HVAC system failure. This is the recommended alternative.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 20, 2013 
Page 8 of 8 
ATTACHMENTS TO THIS REQUEST 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
February 5, 2013  Staff presented and requested design funds for both the Maritime
Industrial Center (MIC) Building A-1 Roof replacement project (CIP #800571) and the
Fishermen's Terminal Net Shed #9 (CIP#800527). Commission approved the MIC
roofing project but postponed the Fishermen's Terminal Net Shed #9 item. 
May 14, 2013  Commission approved design funding for the Fishermen's Terminal
Net Shed Building #9 Roof Overlay (CIP #800527). 
July 9, 2013  Commission approved design funding for the Fishermen's Terminal C-2
Nordby HVAC and Roof Replacement (CIP #800344).