PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       6d 
ACTION ITEM             Date of Meeting    May 14, 2013 

DATE:    May 6, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Fred Chou, Capital Project Manager, Capital Development 
Rebecca Schwan, Real Estate Manager, Portfolio & Asset Management 
SUBJECT:  Authorization for Construction Funding - Fishermen's Terminal Building C-15
HVAC Improvements (CIP No. C800137) 

Amount of This Request:  $3,130,000       Source of Funds: Tax Levy 
Est. State and Local Taxes:  $251,000        Est. Jobs Created: 27 
Est. Total Project Cost:    $3,987,000 
ACTION REQUESTED: 
Request Commission authorization for the Chief Executive Officer to advertise for construction, 
execute a construction contract, and fund the construction phase to complete the Fishermen's
Terminal C-15 Building HVAC Improvements Project in an amount not to exceed $3,130,000 
for a total estimated project cost of $3,987,000. 
SYNOPSIS: 
This project replaces the existing heating, ventilating, and air conditioning (HVAC) and the
digital controls systems in the Fishermen's Terminal C-15 Building (Fishermen's Center
Building). The existing HVAC system is original to the C-15 Building, which was built in 1987.
The normal useful life of the existing HVAC system is approximately 15-20 years. This system
has been able to function for 25 years due to proper maintenance and repairs, but it is well past
its useful life. The digital control systems were upgraded in 2005/2006 but there have been rapid
advancements in energy efficient controls technology since then. 
With the final design of the replacement system complete, staff is seeking Commission
authorization to proceed with the construction phase of the project, inclusive of advertisement,
bid, award, execution and the subsequent close out of the construction contract/project.
BACKGROUND: 
Fishermen's Terminal, located on Salmon Bay, is a regional center for maritime activity and one
of the few working terminals in the United States with public access. Restaurants, retail shops, a

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 6, 2013 
Page 2 of 6 
fresh seafood market and the Seattle Fishermen's Memorial offer a front-row seat to the historic
fishing industry and harbor. 
Building C-15 at Fishermen's Terminal was constructed in 1987. Building occupants include the
Port of Seattle operations staff and 18 mixed-use tenants, including leased offices, various retail
businesses, and four restaurants.
The HVAC system for the C-15 Building currently consists of 19 "rooftop" units ranging in size
from 2.5 tons to 25 tons cooling capacity. When the building was first constructed, the units
were installed on two mezzanine levels, (one for the west side of the building and one for the
east side of the building) that were integrated into an open truss roof structure; basically the floor
of the mezzanine and the roof for the building are tied together structurally. This created
significant challenges for future equipment replacement work. 
The design engineering team has analyzed design options and determined the most cost effective
solution with attention to energy efficiency and sustainability. The design has evolved to address
challenges such as installing large units (up to 7'x7'x4') into spaces with limited (42")
opening/access and the team has found ways to significantly reduce construction disruptions to
tenant spaces.
PROJECT JUSTIFICATION: 
This project will install a new energy efficient HVAC System at the C-15 Building at
Fishermen's Terminal to replace an aging system that has outlived its useful life. With the
exception of the units that serve the restaurants, the Port is responsible for the maintenance and
repair of the HVAC system. Replacing the system will serve to protect and maintain the long
term revenue stream of the building. 
Project Statement: 
This project will replace the existing HVAC and controls system with new energy efficient
equipment and a fully integrated digital controls system.
Project Objectives: 
Replace the existing HVAC system with an energy efficient system. 
Replace the two existing HVAC controls systems. 
Maximize tenant comfort and flexibility in future tenant space adjustments. 
Minimize construction impacts to existing tenants. 
Replace the existing HVAC system with the most cost effective solution taking into account
full lifecycle costs (initial cost of equipment, maintenance, longevity, etc.). 
Create a design for this replacement that allows for easy access for system maintenance and
replacement in the future.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 6, 2013 
Page 3 of 6 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
The Fishermen's Terminal C-15 Building HVAC Improvements Project includes: 
Design and construction of a new energy efficient HVAC system to replace the existing
system and make it easily accessible for future replacements. 
Design and installation of a new integrated HVAC digital control system to replace the two
systems currently in use. 
Full commissioning of the system to ensure functionality and to maximize energy efficiency. 
This requested action authorizes the work required during the construction phase, including
project closeout, project management, and other activities necessary for the completion of the
project. 
Remaining Project Milestones: 
Start                Finish 
Major Works Construction Bid     May 2013            June 2013 
Construction Notice to Proceed      August 2013 
Contractor Long Lead Items       August 2013          November 2013 
Construction                  August 2013           March 2014 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary: 
Total Project 
Original Budget                                    $0 
Previous Authorizations                               $857,000 
Current request for authorization                           $3,130,000 
Total Authorizations, including this request                   $3,987,000 
Remaining budget to be authorized                       $0 
Total Estimated Project Cost                            $3,987,000 
Project Cost Breakdown: 
This Request       Total Project 
Construction                       $2,658,000         $2,658,000 
Construction Management             $201,000         $287,000 
Design                          $0              $553,000 
Project Management                 $20,000         $139,000
Permitting                         $0              $99,000 
State & Local Taxes (estimated)           $251,000          $251,000 
Total                               $3,130,000       $3,987,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 6, 2013 
Page 4 of 6 
Budget Status and Source of Funds: 
The Fishermen's Terminal C-15 Building HVAC Improvement Project was included in the 2013 
Plan of Finance as a committed project in the amount of $4,000,000, inclusive of amounts spent
prior to 2013, under CIP C800137. 
The project will be funded from the Tax Levy. 
Financial Analysis and Summary: 
CIP Category            Renewal/Enhancement 
Project Type             Renewal and Replacement 
Risk adjusted discount rate    N/A 
Key risk factors             Actual costs could exceed current estimates. This risk
is deemed low since the project's design phase is
complete. 
Project schedule could be delayed due to weather or
the need to minimize the impacts of construction to
existing tenants. 
Future revenues could be less than currently expected. 
Project cost for analysis       $3,987,000 
Business Unit (BU)         Real Estate  Commercial Properties 
Effect on business          This is a renewal and replacement project and
performance            accordingly, this project preserves Net Operating Income
(NOI) rather than creates new NOI. 
NOI generated by the C-15 building is approximately
$560,000 per year excluding major maintenance
expenses and tenant improvements. 
As a result of this project, depreciation expense will
increase when the assets are put in service. The
incremental impact to NOI and NOI After Depreciation
is noted below. 
NOI (in $000's)       2013  2014  2015  2016  2017
NOI            $0   $0   $0   $0   $0
Depreciation         $0   ($156) ($209) ($209) ($209)
NOI After Depreciation   $0   ($156) ($209) ($209) ($209)
IRR/NPV            N/A 
Lifecycle Cost and Savings: 
A lifecycle cost analysis (LCCA) has been developed to identify the lowest total cost of
ownership for the replacement HVAC system and was used in the final HVAC system selection.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 6, 2013 
Page 5 of 6 
Annual operating and maintenance costs for the HVAC system are expected to decrease for the
C-15 Building.
STRATEGIC 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 the Fishermen's Terminal C-15
Building. 
Reducing the overall energy consumption at the facility by replacing old, outdated equipment
with energy efficient equipment and controls. 
ENVIRONMENTAL SUSTAINABILITY: 
This project will replace the old inefficient HVAC system with a new energy efficient system.
The design team evaluated options and lifecycle cost analysis for the replacement systems. The
current design offers the most cost effective and sustainable solution. The construction contract
will also require the contractor to clean the ducts to remove dust, particles and debris 
accumulated over time. During the construction phase, staff will continue to explore additional
sustainability opportunities where possible. 
BUSINESS PLAN OBJECTIVES: 
Replacement of the HVAC system would help preserve target occupancy and maintain market
rates for the C-15 Building at Fishermen's Terminal, thereby helping the Real Estate Division to
meet ongoing financial targets. 
TRIPLE BOTTOM LINE SUMMARY: 
Preserving existing assets defers high-impact and high-cost asset replacement, and therefore,
reduces environmental impact while supporting economic vitality by reducing Port costs and
generating construction related jobs. The Office of Social Responsibility will review small
business goals and Small Contractors and Suppliers requirements, accordingly. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative #1. Do nothing. As the existing system is well beyond its useful life, additional
maintenance costs will be incurred and the risk of system failure increases. The existing HVAC
units are old and parts are becoming progressively more, if not impossible, to obtain. Given the
structural issues associated with replacement, rapidly replacing the system in the event of failure
becomes very challenging, the costs increase, the Port risks not being able to meet our lease
obligations, and the tenants are uncomfortable. This alternative is not recommended.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 6, 2013 
Page 6 of 6 
Alternative #2. Replace just the HVAC s ystem and not the digital control system. This option
would not allow for the maximum energy savings that replacing both the HVAC and control
system would allow. In addition, the existing control systems that are in place are not fully
compatible with the new HVAC equipment and would be costly to retrofit. L ess energy efficient
or more costly new equipment may need to be specified in order to make the new HVAC and
controls compatible. This alternative is not recommended. 
Alternative #3. Replace the exi sting HVAC and digital control systems with a new energy
efficient system. This option assures that the controls and HVAC equipment will be compatible
and will perform as required to keep our tenants and customers comfortable. This is the
recommended option. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
May 11, 2010  Commission authorized the design funding of $807,000, bringing total
project authorization to $857,000. 
November 30, 2009  Commission was briefed on the project status.