COMMISSION 
AGENDA MEMORANDUM                        Item No.          6c 
ACTION ITEM                            Date of Meeting       April 25, 2017 
DATE:     February 13, 2017 
TO:        Dave Soike, Interim Chief Executive Officer 
FROM:    Srini Pendikatla, Program Manager Marine Stormwater Utility 
Curtis Stahlecker, Capital Project Manager 
SUBJECT:  Terminal 18 Stormwater Outfall Renewal and Replacement (CIP #C800895) 
Amount of this request:           $ 920,000 
Total estimated project cost:       $4,000,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to:  (1) execute service
agreements for the Terminal 18 Stormwater Outfall Renewal and Replacement project; (2)
prepare design and construction documents; (3) prepare and apply for permits; and (4) utilize
Port crews and small works contracts for preliminary work for an amount not to exceed
$920,000 out of a total estimated project cost of $4,000,000. 
EXECUTIVE SUMMARY 
This is the first capital project under the Marine Stormwater Utility (Utility) and will repair and
replace stormwater outfalls located at Terminal 18. The project is funded by revenue collected
from Port and Northwest Seaport Alliance (NWSA) tenants based on current approved rates.
The work focuses at the end of the stormwater drainage systems from the last manhole to the
outfall and includes  re-grading  the pipes, replacing  nonfunctioning tide gate  valves and
repairing broken pipes. The effort will keep tidal waters from entering and flowing within the
drainage system; prevent ground water and soil from migrating into the stormwater system
and ultimately entering Puget Sound protecting water quality. 
Due to the operational impacts on tenant operations, the work will be phased over the next
four years. 
JUSTIFICATION 
The Marine Stormwater Utility was organized as a separate program in November 2014, and an
Interlocal Agreement (ILA) with the City of Seattle was signed on November 9, 2016. The Utility
has jurisdiction over both the NWSA North Harbor properties and Port of Seattle facilities. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6c                                   Page 2 of 5 
April 25, 2017 
In addition to collecting drainage fees, Utility began a comprehensive investigation of the
stormwater infrastructure with T-18 at the forefront due to the system size, importance to the
container shipping network, and the requirement for improved treatment systems, which the
tenant is in the process of installing in a number of performing upland basins. 
There are 13 outfalls located at Terminal 18, installed in the 1960s and 1970s that are owned
and maintained by the Port. Given the age of the systems, the outfalls have performed well
over the years; however, there are a number of deficiencies that need to be addressed to
protect the Port's assets and maintain the water quality of Puget Sound. 
DETAILS 
Most of the 13  outfalls located on the East  Duwamish  Waterway of Terminal  18  have
nonfunctioning or missing tide gate valves, several of the pipes are broken where they pass
through the bulkhead, and other pipes have settled, causing ponding to occur within the pipes.
This project will repair the broken pipes, correct the grade issues, and install new tide gate 
valves. 
Benefits  of this project include maintaining the integrity of the environmental controls
established by the Superfund record of decision. Additional benefits include preventing
infiltration of groundwater and flow of tidal waves into the stormwater system improving the
water quality of the East Duwamish Waterway; reducing corrosion within the pipes from more
corrosive ocean salt water; reducing maintenance and cleaning within the stormwater pipes 
and contributing to meeting Century Agenda Strategy 4, Objective 13  Meet or exceed agency
requirements for stormwater. 
Scope of Work 
The scope for this project will concentrate on making repairs to the outfalls from the tide gate
valve at the end of the pipe to the first manhole upstream and will include the following: 
(1) New tide gate valves, 
(2) Realign the grade to correct the drainage slope, 
(3) Repair broken pipes, and 
(4) Line pipes to prevent groundwater infiltration where feasible. 
Small Business 
In conjunction with the Port of Seattle's Small Business Generator Program's (PortGen)
outreach activities, the leveraging of Small Works contracts will maximize small business
participation for this project. Historically, Small Works have produced high levels of small
business participation for the Port. 


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

COMMISSION AGENDA  Action Item No. 6c                                   Page 3 of 5 
April 25, 2017 
Schedule 
Design and site investigation work will begin in the second quarter of 2017. Installation of curein-place
pipe lining of up to two stormwater lines is planned during the third quarter of 2017, 
with the balance of construction phased over the next four years. Phasing of the project will be
necessary because the work will be located very near and under the dock and be disruptive to
the terminal operations. To mitigate the terminal disruptions,  the work will be  closely
coordinated with tenant, and phased where practical to coincide with construction that the
tenant is conducting to install stormwater treatment systems. 
Commission design authorization               Q2 2017 
Commission construction authorization          Q3 2017 
Construction start                                Q3 2017 
In-use date                                       Begin Q4 2017 
Cost Breakdown                                     This Request           Total Project 
Design                                                    $800,000               $800,000 
Construction                                              $215,000             $3,200,000 
Total                                                         $1,015,000              $4,000,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Postpone action and monitor the condition of Terminal 18 Outfalls for future
action 
Cost Implications: $25,000 to $50,000 annual monitoring costs 
Pros: 
(1)   Allows Utility funds to be used at other facilities. 
Cons: 
(1)   Does not address the current conditions. 
(2)   Current conditions will continue to deteriorate. 
(3)   Would not provide the opportunity to phase the work with the tenant construction of
stormwater treatment, minimizing terminal disruptions. 
This is not the recommended alternative. 
Alternative 2  Move forward with the T-18 Outfall Project 
Cost Implications: Project costs are estimated to be $4 million 
Pros: 
(1)   Corrects the identified system deficiencies of inoperable tide gate valves, broken pipes
and grade. 
(2)   Improves the water quality entering Puget Sound. 
(3)   Protects the existing infrastructure from further damage. 

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

COMMISSION AGENDA  Action Item No. 6c                                   Page 4 of 5 
April 25, 2017 
(4)   Expected life of rehabilitated infrastructure is 50 years. 
(5)   Capital funds for this project are budgeted in the 10-year budget forecast and 10- year
cash spending forecast. 
Cons: 
(1)   Requires the expenditure of $4 million in capital costs. 
(2)   The execution of this project may limit funding of other Utility supported projects. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                 $4,000,000               $0      $4,000,000 
AUTHORIZATION 
Previous authorizations                             $95,000                0         $95,000 
Current request for authorization                  $920,000                0        $920,000 
Total authorizations, including this request       $1,015,000                0      $1,015,000 
Remaining amount to be authorized            $2,985,000             $0     $2,985,000 
Annual Budget Status and Source of Funds 
The project was included in the 2017 plan of finance under CIP #C800895 in the amount of
$4,000,000.  This project will be funded by the Marine Stormwater Utility fund from revenue
collected from Port and NWSA tenants based on current approved rates. 
Financial Analysis and Summary 
Project cost for analysis              $4,000,000 
Business Unit (BU)                  Marine Stormwater Utility 
Effect on business performance     This project will increase depreciation expense by
(NOI after depreciation)             $80,000 per year after the project is completed in 2020. 
IRR/NPV (if relevant)                The NPV of this project is the present value of the project
cost and annual maintenance costs. 
CPE Impact                       NA 
Future Revenues and Expenses (Total cost of ownership) 
No future revenues are anticipated as a result of this project. The expenses for maintenance are
estimated to be $25,000 in 2021 with 3.5% inflation rate thereafter. 
ADDITIONAL BACKGROUND 
The Port of Seattle and the City of Seattle entered into an interlocal agreement regarding the
coexistence of a Port of Seattle Marine Stormwater Utility and a City of Seattle Stormwater

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

COMMISSION AGENDA  Action Item No. 6c                                   Page 5 of 5 
April 25, 2017 
Utility. With the establishment of the Marine Stormwater Utility, the stormwater drainage fees
that were previously paid to the City of Seattle are now collected and retained by the Port to
support the Marine Stormwater Utility's objectives. These objectives include: 
Assess condition of Stormwater lines and related structures 
Identify urgent repairs, and prioritize and complete those repairs 
Identify and characterize longer term capital improvements that could contribute to
system rehabilitation and improved stormwater quality from Port Properties 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None 












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