PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA              Item No.      6f 
ACTION ITEM             Date of Meeting  November 19, 2013 

DATE:    November 13, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Melinda Miller, Director Real Estate Portfolio and Asset Management 
Mark Longridge, Capital Project Manager 
SUBJECT:  Additional Construction funding for Pier 66 Steam Replacement CIP #C800625 
Amount of This Request:    $160,000        Source of Funds:  Tax Levy 
Est. Total Project Cost:      $1,560,000 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to increase the amount of the
Pier 66 Cruise Terminal and Bell Harbor Conference Center Steam Replacement project by
$160,000 to complete all remaining installation and closeout tasks for a total revised project
authorization of $1,560,000. 
SYNOPSIS 
On May 10, 2013, the Seattle Steam Company informed the Port that it would no longer be able
to provide service to Pier 66 because the steam line serving the facility will be removed as part of
the work being conducted on the City of Seattle's seawall replacement project. This steam line
is the only source of heat and hot water to the Port's tenants at Pier 66. 
The Capital Development Division has met this deadline, has been able to keep the building
operational,  and replaced the sources of domestic hot water and building heat  with new
equipment. To complete this work the Port used Port crews, major works and small works
contracts, direct material purchases, and in-house and consultant design services. 
Although the building is now operating independent of steam service, there is still remaining
work to complete the tie-in of this new equipment to the existing Building Management System,
complete as-built records, and perform remaining demolition and cleanup of the site. Additional
funds are needed to complete these remaining activities.
The original estimate for this work was completed before design had begun for the project. With
the complex installation and accelerated schedule to complete the work by the cutoff deadline the
construction proved more costly than originally estimated. In addition, the original estimate did

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 13, 2013 
Page 2 of 4 
not include any significant funding for the integration of the new equipment into the Building
Management System to allow the system to run at optimum efficiency. 
The request for additional funds requires Commission authorization in accordance with the
Master Delegation of Authority for the Port of Seattle, Section 4.2.3.3(i). 
Project Objectives 
Install stand-alone heat and domestic hot water supply to the building to replace the current
steam service by November 15, 2013. 
Scope of Work 
Design and installation of natural gas fired hot water heaters and boilers plus associated
equipment, piping and venting to adequately supply the building with heat and domestic hot
water at or above the current level.
The design of the mechanical system was performed by in-house engineering staff,
supplemented by existing indefinite delivery, indefinite quantity (IDIQ) design contracts as
necessary. The majority of the equipment and materials necessary for this system were procured
directly by the Port. The installation of this equipment was performed by a combination of Port
crews and open order small works and major works contracts.  Using this hybrid approach 
allowed the needed flexibility to complete the work quickly and work around the active
conference and cruise schedules at the facility. 
The remaining scope required includes the site demolition and cleanup of all onsite materials,
completion of final as-built records, and interfacing of the new equipment to the Building
Management System. 
Schedule 
All work to transition the building systems off the existing steam supply is complete, and the
building hot water and heating systems are currently operating independent of supplied steam as
of November 1, 2013.
Remaining work including remaining demolition of the old system and the integration of the new
equipment to the building management system will be completed by December 31, 2013. 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                      $1,400,000          $0    $1,400,000 
Previous Authorizations                 $1,400,000          $0    $1,400,000 
Current request for authorization            $ 160,000          $0    $ 160,000 
Total Authorizations, including this request     $1,560,000          $0    $1,560,000 
Total Estimated Project Cost            $1,560,000         $0    $1,560,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 13, 2013 
Page 3 of 4 

Project Cost Breakdown                This Request    Total Project 
Construction                          $140,000    $1,143,000 
Construction Management                          $65,000 
Design                             $20,000     $152,000 
Project Management                              $98,000 
Permitting                                        $2,000 
State &Local Taxes (estimated)                        $100,000 
Total                                        $1,560,000 
Budget Status and Source of Funds 
This project for $1,560,000 was not anticipated in the 2013 Real Estate capital budget and
related plan of finance because the Port was notified that Seattle Steam would be discontinuing
service due to construction of the Elliot Bay Seawall replacement project after final approval of
the budget. The source of funds will be the tax levy. 
Financial Analysis and Summary 
CIP Category              Renewal/Enhancement 
Project Type               Renewal & Replacement 
Risk adjusted discount rate      N/A 
Project cost for analysis          $1,560,000 
Business Unit (BU)           Portfolio Management/Cruise and Maritime Operations 

STRATEGIES AND OBJECTIVES 
This project provides a functioning facility to Port tenants in support of business plan strategies
that call for marketing Seattle as a homeport and port of call for cruise lines and maintaining real
estate assets. These strategies bolster the Port's Century Agenda s trategy to advance the region
as a leading tourism destination and business gateway.
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Stop all current and remaining work on the project.  Leave the existing
equipment and materials in place, and operate the building heating system manually without
tying into the building management system. This would not meet current energy code standards,
and would leave a significant amount of demolished material in the mechanical penthouse. This
is not the recommended alternative. 
Alternative 2)  Complete the site demolition and cleanup of all onsite materials. Tie in the new
equipment to the building management system and complete all other final tasks to operate the
building at peak efficiency. This is the recommended alternative.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 13, 2013 
Page 4 of 4 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
June 25, 2013  Commission authorization of design and construction funding.