4d
COMMISSION AGENDA MEMORANDUM Item No. 4d ACTION ITEM Date of Meeting October 10, 2017 DATE: August 18, 2017 TO: Dave Soike, Interim Executive Director FROM: Kenneth R. Lyles, Director, Fishing & Commercial Operations Curtis Stahlecker, Capital Project Manager, Seaport Project Management SUBJECT: Fishermen's Terminal Docks 3, 4, and 5 Fixed Pier Improvements (CIP #C800531) Amount of this request: $720,000 Total estimated project cost: $6,400,000 ACTION REQUESTED Request Commission authorization for the Executive Director to: ( 1) complete design and prepare construction documents for the Fishermen's Terminal Docks 3, 4, and 5 Fixed Pier Improvements; and (2) prepare and apply for permits for an amount not to exceed$720,000 out of a total estimated project cost of $6,400,000. EXECUTIVE SUMMARY Fishermen's Terminal is the home of the North Pacific fishing fleet. This project maintains the region's vital connection to the fleet by strengthening and preventing future corrosion of the structural steel piling supporting Fishermen's Terminal Docks 3 and 4 and provides corrosion protection for the structural pile at Dock 5. The timber fender system surrounding the dock will be investigated and a replacement strategy will be developed based on the findings. Implementation of the fender system strategy is intended for a subsequent project. JUSTIFICATION The structural steel piles supporting Docks 3 and 4 were installed in the early 1980s. The structural pile consists of a thin steel jacket filled with unreinforced concrete. The pile system provided reliable service over the past 35 years, but corrosion is starting to manifest in the splash zones and near the mud line on the piles, compromising the integrity of the system and requiring both strengthening and the prevention of future corrosion. The timber fender system on Docks 3 and 4 is functioning, but there are signs of distress warranting additional investigation and planning for replacement as required. The structural piles on Dock 5 were installed in 2005 and are beginning to show mild corrosion. Preservation measures are recommended. Template revised September 22, 2016. COMMISSION AGENDA Action Item No. 4d Page 2 of 5 Meeting Date: October 10, 2017 DETAILS The structural piling on Docks 3 and 4 has moderate-to-major corrosion on the majority of its piling. This corrosion has resulted in material loss ranging from 12 to 36 percent of the steel pile that is needed for the structural integrity of the pile. Dock 5 is showing corrosion at the water line with a material loss ranging from 3 to 4 percent. The material loss on Docks 3 and 4 piling will require structural strengthening. The structural pile at Docks 3 and 4 will be repaired by installing a fiber reinforced polymer (FPR) jacket. The benefits of this system include minimum disruption to the terminal operations and maintaining economic vitality of the terminal as the FPR system is installed over the existing piles. The piles will be accessed by divers who will attach the FPR system in sections. This system is far less disruptive and more cost effective than a conventional pile replacement operation, which would generate a significant amount of construction demolition waste and emissions. Since pile strengthening is not required at Dock 5, only pile preservation methods are needed. The preservation method to be utilized consists of wrapping the pile with a protective barrier to isolate the steel from the element causing the corrosion and the installation of a passive cathodic protection system. Cathodic protection is an electrochemical means of corrosion control. The amount of corrosion that has occurred on the Dock 5 structural piling is not significant enough to demand immediate attention. However, by combining the preservation work with Docks 3 and 4 pile strengthening work, it is anticipated that economies of scale and reduced mobilization costs will be realized by performing the work now as opposed to performing the work as a stand-alone project in the future. Scope of Work The scope would include strengthening and preventing future corrosion of the structural steel piling supporting Docks 3 and 4 and providing corrosion protection for the structural pile at Dock 5 as well as investigating the fender pile system. The work would include the following: (1) Installing FRP jackets on the 234 structural piles at Docks 3 and 4 for the full length to two feet below the mud line. (2) Install 60 pile wraps in the splash zone and cathodic protection at Dock 5. (3) Timber fender system investigation recommendation. Small Business Based upon the work elements within the scope of work, project staff have partnered with the small business group to conduct outreach and will inform those small and historically underutilized businesses of Fishermen's Terminal dock project opportunities. Schedule Design effort will initiate in the fourth quarter of 2017 with construction anticipated to occur during the 2018/2019 fish window, the period during which the in-water work may be conducted without disrupting native fish populations. Template revised September 22, 2016; format updates October 19, 2016. COMMISSION AGENDA Action Item No. 4d Page 3 of 5 Meeting Date: October 10, 2017 Commission design authorization Q4 2017 Design start Q4 2017 Commission construction authorization Q2 2018 Construction start Q4 2018 In-use date Q1 2019 Cost Breakdown This Request Total Project Design $720,000 $880,000 Construction $0 $5,520,000 Total $720,000 $6,400,000 ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 Do not execute the fixed pier improvements, but instead perform annual above-water inspections and periodic below-water inspections. Cost Implications: $10,000 to $45,000 monitoring cost for annual above-water inspections and periodic below-water inspections. Pros: (1) Allows capital funds to be available for other projects. Cons: (1) Current conditions will continue to deteriorate, in particular Docks 3 and 4. (2) Delayed action will increase costs due to deterioration of piles and construction cost escalation. This is not the recommended alternative. Alternative 2 Strengthen the structural pile on Docks 3 and 4 and monitor condition of piles at Dock 5. Cost Implications: $6,000,000 Pros: (1) Addresses the immediate need to repair the piles that have corroded and extends the asset life. (2) Less capital expenditure. Cons: (1) The Dock 5 preservation work would be at a higher cost in the future. (2) Additional mobilization and terminal operations disruption will be required. This is not the recommended alternative. Template revised September 22, 2016; format updates October 19, 2016. COMMISSION AGENDA Action Item No. 4d Page 4 of 5 Meeting Date: October 10, 2017 Alternative 3 Strengthen the structural pile on Docks 3 and 4 and provide corrosion protection on piles at Dock 5. Cost Implications: $6,400,000 Pros: (1) Repairs and provides corrosion protection for the structural pile supporting Docks 3, 4, and 5. (2) Performs the work under one contract taking advantage of economies of scale, reducing mobilization costs, and terminal operation disruptions. Cons: (1) Higher capital outlay. This is the recommended alternative. FINANCIAL IMPLICATIONS Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Original estimate $6,400,000 $0 $6,400,000 AUTHORIZATION Previous authorizations $80,000 0 $80,000 Current request for authorization $720,000 0 $720,000 Total authorizations, including this request $800,000 0 $800,000 Remaining amount to be authorized $5,600,000 $0 $5,600,000 Annual Budget Status and Source of Funds The Fishermen's Terminal Docks 3, 4, and 5 Fixed Pier Improvement project was included in the 2017 Plan of Finance under CIP #C800531 FT Dock 3 Fixed Pier Improvement and #C800532 FT Dock 4 Fixed Pier Corrosion Protection, for a total amount of $6,500,000. This project will be funded by the tax levy. Financial Analysis and Summary Project cost for analysis $6,400,000 Business Unit (BU) Fishing & Commercial Operations Effect on business performance This project will maintain current revenue from (NOI after depreciation) Fishermen's Terminal Docks 3, 4, and 5. Depreciation will increase by $214,400 per year. IRR/NPV (if relevant) No incremental revenue. The NPV is the present value of the project cost. CPE Impact N/A Template revised September 22, 2016; format updates October 19, 2016. COMMISSION AGENDA Action Item No. 4d Page 5 of 5 Meeting Date: October 10, 2017 Future Revenues and Expenses (Total cost of ownership) Extending the useful service life of our existing assets defers eventual replacement costs for a longer period, supporting the economic vitality of our operations. Other economic benefits include cost effectiveness and minimum disruption to the terminal operations. ATTACHMENTS TO THIS REQUEST (1) Presentation slides PREVIOUS COMMISSION ACTIONS OR BRIEFINGS None Template revised September 22, 2016; format updates October 19, 2016.
Limitations of Translatable Documents
PDF files are created with text and images are placed at an exact position on a page of a fixed size.
Web pages are fluid in nature, and the exact positioning of PDF text creates presentation problems.
PDFs that are full page graphics, or scanned pages are generally unable to be made accessible, In these cases, viewing whatever plain text could be extracted is the only alternative.