COMMISSION 
AGENDA MEMORANDUM                        Item No.          6b 
ACTION ITEM                            Date of Meeting       June 25, 2019 
DATE:     June 12, 2019 
TO:        Stephen P. Metruck, Executive Director 
FROM:    John Hall, Marine Maintenance Project Manager III 
Shannon Zink, Real Estate Manager 
SUBJECT:  Pier 66 HVAC Controls Replacement (CIP #C801006) 
Amount of this request:                 $450,000 
Total estimated project cost:            $750,000 
ACTION REQUESTED 
Request a single Commission authorization for the Executive Director to:  (1) complete design
and construction of Phase II of the modernization of HVAC controls at the Bell Harbor
International Conference Center at Pier 66 in an amount not to exceed $450,000 of a total
estimated project cost of $750,000; and (2) use port crews to complete the work. 
EXECUTIVE SUMMARY 
Approval of this request will allow completion of the final phase of updating the 24-year-old
HVAC control system at Pier 66. Currently, there are two control systems in operation  the
legacy system, which controls pre-existing equipment and was installed in 1995, and the new
stand-alone digital controls (SDC) system, which is an updated operating system installed during
the recent cruise terminal build out. While the newer system is able to interact with both the
new and original controls, the legacy system is only able to work with the original controls. 
In May of this year, Phase I of the modernization of the legacy controls was completed as a
small project in response to a control system failure determined to be extremely urgent. This 
current request is for funding Phase II of the project to modernize the remaining legacy
controls. 
JUSTIFICATION 
The legacy control system, which controls critical heating and cooling equipment, is obsolete 
and  vendors are no longer able to obtain replacement control boards. If the  remaining 
outdated controls fail,  we will not be able to operate the affected heating and cooling
equipment servicing the facility. In addition to minimizing disruptions of building operations,
modernized controls will improve building energy efficiencies, assist in developing a

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. __6b_                               Page 2 of 4 
Meeting Date: June 25, 2019 
comprehensive sequence of operations, and reinforce compliance with the City of Seattle
Ordinance regarding building energy tune-ups. 
DETAILS 
The project will be led by Marine Maintenance Electricians working in conjunction with a smallworks
mechanical contractor. Given the relatively small scope of the project, the required
design is minimal and will be completed with in-house resources. 
Scope of Work 
This project will replace remaining building control units (BCUs) and their associated unit
controllers  (UCs). Once installed, the new units  will be commissioned and added to the
sequence of operations. 
Schedule 
The work of this project will be completed in the fourth quarter of 2019. 
Activity 
Commission design authorization               2019Q2 
Design start                                       2019Q2 
Commission construction authorization          2019Q2 
Construction start                                2019Q3 
In-use date                                       2109Q4 
Cost Breakdown                                     This Request           Total Project 
Design                                                         $20                    $20 
Construction                                                  $430K                  $730K 
Total                                                                $450                     $750 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do not complete the controls modernization; instead complete minor repairs to
the controls system as needed. 
Cost Implications: $5,000 to $15,000 estimated for annual urgent repairs to legacy controls. 
Pros: 
(1)   Conserves capacity on the capital budget. 
Cons: 
(1)   Risks  a  major  controls  failure  that  would  significantly  disrupt  conference  center
operations. 
(2)   Existing controls do not support building energy efficiency. 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. __6b_                               Page 3 of 4 
Meeting Date: June 25, 2019 
This is not the recommended alternative. 
Alternative 2  Fund Phase II of the project and modernize all remaining legacy controls. 
Cost Implications: $450,000 expenditure from the capital budget. 
Pros: 
(1)   Maintains Port standards for modern facilities. 
(2)   Provides effective climate control for the conference center. 
(3)   Supports building energy efficiency. 
Cons: 
(1) Requires an expenditure from the capital budget. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary               Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                   $850,000               $0        $850,000 
Previous changes  net                                    0                0                0 
Current change                                 ($100,000)               0      ($100,000) 
Revised estimate                                  $750,000                0        $750,000 
AUTHORIZATION 
Previous authorizations                            $300,000                0        $300,000 
Current request for authorization                  $450,000                0        $450,000 
Total authorizations, including this request         $750,000                0        $750,000 
Remaining amount to be authorized              $450,000               0       $450,000 
Annual Budget Status and Source of Funds 
The funding for this project was included in the  2019  Plan of  Finance for Economic
Development Division under CIP C801006 P66 HVAC Systems Upgrade with a total project cost
of  $2,915,000.  The  current  total project  estimate  is  $2,530,000  including  HVAC  Controls
Replacement of $750,000. 
The project will be funded by the General Fund. 
Financial Analysis and Summary 
Project cost for analysis              $750,000 
Business Unit (BU)                  Portfolio Management 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. __6b_                               Page 4 of 4 
Meeting Date: June 25, 2019 
Effect on business performance     Depreciation of $75K per year for 10 years. There are no
(NOI after depreciation)             incremental revenues associated with this project. 
IRR/NPV (if relevant)                NPV is present value of project costs. 
Future Revenues and Expenses (Total cost of ownership) 
Modernizing our existing assets readies them for current and future changes, extends their
useful life, and preserves the economic vitality of our operations.  The cost saving of keeping
the existing legacy components offers no long-term savings. Even without considering the risk
of a major failure, if these upgrades are not made at this time then the system will need
replacement in a few years and will require a capital expenditure at that time. In considering
maintenance costs, the new control units will not result in any additional increases. 
ATTACHMENTS TO THIS REQUEST 
Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None 











Template revised September 22, 2016; format updates October 19, 2016.