4h

PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4h 
ACTION ITEM 
Date of Meeting    September 8, 2015 
DATE:    August 21, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Lindsay Pulsifer, Interim Managing Director, Maritime Division 
Robert Hoyman, Project Manager, Marine Maintenance 
SUBJECT:  T91 W50 Building Demolition & Abatement (Project 105222) 
Amount of This Request:     $1,050,000   Source of              General Fund 
Funds: 
Est. Total Project Cost:       $1,100,000 
Est. State and Local          $75,000 
Taxes: 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to complete design and
permitting, prepare construction documents, advertise for construction, bid and award a
construction contract to demolish the Terminal 91 W-50 Building. The total value of this request
is $1,050,000 for an estimated  total project cost of $1,100,000.  $50,000 was previously
authorized for project design and permitting work. 
SYNOPSIS 
The W-50 Building is a 24,222 square foot building located on the Terminal 91 property. This
building shares a parking lot with Marine Maintenance's North Operations area and is located
just north of the Magnolia Bridge. The building is currently vacant and has not been in use for
several years. The building has deteriorated to the point where it can no longer be occupied, has
become a safety hazard and is beyond repair. Furthermore, the building was surveyed for
hazardous materials and found to contain asbestos, lead paint, mercury and Polychlorinated
Biphenyls (PCB's). 
Port Commission approved $50,000 for design development and permitting to abate and
demolish the W-50 Building in October 2014. Design development is complete. Environmental
requests for permits have been submitted. SEPA review is complete and the Determination of
Non-significance decision is currently open for comment. 
Staff recommends proceeding with  hazardous materials abatement followed by  building
demolition. Funding will come from expense dollars. Demolition and removal is expected to be

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
August 31, 2015 
Page 2 of 5 
completed in the 2016 calendar year. In accordance with Port Policy AC-9a Environmental
Remediation Liability (ERL), a portion of the funding will come from the ERL Budget. The
remainder of the necessary funding will come out of the Maintenance Expense Budget. Dollars
were budgeted in the 2015 Calendar year. 
BACKGROUND 
The W-50 Building was built in 1947 for the US Navy and later purchased by the Port in 1976.
This is the last building remaining of the former naval supply warehouses at Terminal 91. The
building has had no major remodels or upgrades and is currently vacant and un-useable. 
In April 2013, Argus Pacific provided a Regulated Building Materials Assessment Report for the
building. The report indicates the entire exterior of the building is covered with cement asbestos
board (CAB) panels. Piping throughout the building is wrapped in asbestos containing insulation.
Vinyl floor tiles, electrical panels and roofing materials also contain detectable amounts of
asbestos. Additionally, lead, mercury and PCB's have been detected in various locations
throughout the building. Argus Pacific also produced draft abatement design drawings based on
the findings of the referenced assessment. 
In May of 2015 KPFF Engineers concluded a Master Use Plan (MUP) to serve as representation
of the Port's intended use of the property and to be submitted to the City of Seattle for MUP
Permitting. 
Sound Earth Strategies, Inc. is working with the Port Maritime Environmental to complete
permitting requirements. SEPA review is complete and the Determination of Non-significance
decision is currently open for comment. Application for City of Seattle Master Use Permit has
been submitted. Approval of the MUP by the City of Seattle DPD is expected by fourth quarter 
of 2015. Demolition is expected in 2016. 

PROJECT JUSTIFICATION AND DETAILS 
Building W-50 has deteriorated beyond the point of feasible repair. It's laden with regulated
materials and is an environmental and safety liability. If left as-is, with sections of the roof
removed and without any upgrades or maintenance, the building will continue to deteriorate and
could eventually be condemned and / or collapse. 
The existing slab-on-grade foundation will remain as a parking area for Port equipment. 
Per Port Policy AC-9a, Port Construction Services (PCS) will manage the regulated materials
abatement work.
Project Objectives 
Complete building demolition by May, 2016.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
August 31, 2015 
Page 3 of 5 
Monitor abatement in accordance with Environmental Remediation Liability Policy AC-
9a guidelines and account for all abatement costs according to GASB No. 49. 
Scope of Work 
Remove all regulated materials in accordance with environmental regulations and best practices.
Demolish the W-50 building to the ground level. Dispose of all materials in appropriate manner. 
Install an asphalt overlay to channel ground water to existing catch basins. 
Schedule 
Commission Authorization                 September 8, 2015 
Complete Construction Contract Documents     November, 2015. 
SEPA and MUP approval                  November, 2015. 
Demolition Permit Submittal                November, 2015 
Advertise for Demolition                  January, 2016 
Contract Awarded                       February 2016 
Project Start Date                        April 2016 
Complete abatement and building demolition    May 2016. 

FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                            $0    $1,088,000    $1,088,000 
Previous Authorizations                       $0      $50,000      $50,000 
Current request for authorization                  $0    $1,050,000    $1,050,000 
Total Authorizations, including this request           $0    $1,100,000    $1,100,000 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost                    $0    $1,100,000    $1,100,000 
Project Cost Breakdown                     This Request       Total Project 
Construction                                $660,000          $660,000 
Construction Management                     $200,000         $200,000 
Design                                    $50,000           $65,000 
Project Management                          $50,000          $65,000
Permitting                                   $28,000           $45,000 
State & Local Taxes (estimated)                    $62,000           $65,000 
Total                                      $1,050,000         $1,100,000

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
August 31, 2015 
Page 4 of 5 
Budget Status and Source of Funds 
The remaining cost of T91 W50 Building Demolition and Abatement project will be included in
the 2016 Operating Budget in the amount of $950,000. Costs incurred through the end of 2015
are forecasted to be at $150,000.
It is estimated that approximately $202,000 of the project costs will be operating environmental
remediation liability work 
As an expense for the Marine Maintenance service group, the cost of the project will be allocated
to the Maritime and Economic Development Divisions through Divisional Allocations. The
source of funds for this project will be the General Funds of the Maritime and Economic
Development Divisions. 
Financial Analysis and Summary 
CIP Category             Not Applicable 
Project Type              Expense 
Risk adjusted discount rate     N/A 
Key risk factors             Key risk factors include cost overruns due to project
constraints or expansion of project scope due to higher
than anticipated asbestos and soil contamination. 
Project cost for analysis        $1,100,000 
Business Unit (BU)          Marine Maintenance Service Group 
Effect on business performance  This project will be recorded as an expense in Marine
Maintenance and will ultimately be allocated to the
Maritime and Economic Development Divisions as a
Divisional Allocation. 
2016 allocation percentages are currently being
formulated. However, the largest share of this project will
be allocated to the Maritime Division. 
IRR/NPV             NPV is the present value of the project cost. 

STRATEGIES AND OBJECTIVES 
Removal of Regulated Materials and Demolition of the W-50 Building reclaims useable parking
lot and storage space at the Marine Maintenance North Operations. Completion of the project
will limit Port Liability.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
August 31, 2015 
Page 5 of 5 
TRIPLE BOTTOM LINE 
Economic Development 
Demolishing the W-50 building rather than refurbishing the existing structure is the most cost
effective solution.  Increase in usable ground space will offer opportunity for locating of
additional crewmembers to site, reducing travel time from the south-harbor shop location. 
Environmental Responsibility 
This Project aligns with Port Policy AC-9a (Environmental Remediation Liability) by removing
and properly disposing of Regulated Materials. 
Community Benefits 
The building is in jeopardy of structural collapse which may cause risk to surrounding properties
and exposure to hazardous materials. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Do not demolish the W-50 Building. The building will continue to deteriorate
and could eventually be condemned and / or may collapse. This is not the recommended
alternative. 
Alternative 2)  Completely renovate the building. The project estimate is $4,310,000 and is
cost prohibitive. This is not the recommended alternative. 
Alternative 3)  Abate all Regulated Materials and demolish the W-50 Building. This is the
recommended alternative. 

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
October 28, 2014 - Request Commission authorization for the Chief Executive Officer to
approve the design development and permitting to abate and demolish the W-50 Building
in the amount of $50,000 with a total estimated project cost of $1,088,000.

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