PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4d 
ACTION ITEM 
Date of Meeting      July 14, 2015 
DATE:    July 14, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:   David Amble, Seaport Asset Manager 
Catherine Chu, Capital Project Manager 
SUBJECT:  Terminal 18 Maintenance Dredging (Expense Project U00033) 
Amount of This Request:        $2,071,000   Source of  General Fund (as part of the
Funds:           Alliance budget) 
Est. Total Project Cost:          $3,216,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to proceed with contracting
and construction of Terminal 18 Maintenance Dredging for an estimated cost of $2,071,000,
bringing the total authorization to $3,216,000.
SYNOPSIS 
This project will restore the depths of vessel berths at T-18 to their designed depths to ensure that
T-18 remains accessible to deep-draft cargo vessels currently in service. Maintenance dredging
at T-18 has been an on-going need due to natural sedimentation and prop wash. On February 10,
2015, the Commission approved funding for the design and permitting phase of this project.
This request is for authorization to proceed with the construction phase of the project. Northwest
Seaport Alliance leadership has endorsed the requested action. 
BACKGROUND 
This project will be occurring at a significant point in the history of the Port of Seattle (Port); the 
responsibility of property and operational management overseeing the T-18 complex, along with
other marine cargo terminals in Elliott Bay, is shifting from the Port to The Northwest Seaport
Alliance (Alliance), consisting of the Port of Seattle and the Port of Tacoma. Like marine ports
throughout the world, maintenance dredging is a routine, regularly occurring activity to ensure
sufficient under-keel clearance for cargo ships when at berth at marine terminals. Alliance asset
management projects of this nature have been captured as separate line items in the Port's
Capital Investment Plan. 
PROJECT JUSTIFICATION AND DETAILS 
The proposed project would restore berths at T-18 to their designed depths to preserve the Port's 
capability in handling containership business. This project was part of the Alliance's financial

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 7, 2015 
Page 2 of 6 
evaluation and Alliance leadership is aware that the Port is planning to proceed with the
dredging. 
Project Objectives: 
Maintain designed depth of -50 feet MLLW (Mean Lower Low Water) at T-18; 
Acquire all necessary and required permits from appropriate agencies prior to start of
construction including request for additional one foot advance maintenance dredging; 
Comply with all conditions stipulated by permit authorizations; and 
Minimize cost to the Port. 
Scope of Work 
This project includes dredging approximately 7,000 cubic yards of material for berths 1-5
(station 0+00 to 49+50) at T-18 to their designed depths. The designed depth is -50' MLLW,
with allowance for an additional 1' of advance maintenance to -51' MLLW. The dredged
material will be disposed of at approved locations based on consultations with the regulatory
agencies comprising the Dredged Materials Management Program (DMMP). If required by the
permit agencies, post-dredged surfaces will be covered with clean sand. The Port is in the
process of advertising for and awarding an on-call major construction contract for dredging. We
expect that when we have final design and permits for the T-18 Maintenance Dredging project
later in the year, the on-call contract will be ready in time for this project. In the event that the
on-call contract is not ready, we will advertise this as a separate major construction contract. 
Schedule 
Design and permitting efforts are already underway. We expect to receive permits and finalize
design by this fall. Construction is planned to take place from December 2015 to February 2016. 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Previous Authorizations                       $0    $1,145,000    $1,145,000 
Current request for authorization                  $0    $2,071,000    $2,071,000 
Total Authorizations, including this request           $0    $3,216,000    $3,216,000 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost                    $0    $3,216,000    $3,216,000 
Project Cost Breakdown                     This Request       Total Project 
Construction                               $1,844,000         $2,094,000 
Construction Management                      $50,000         $100,000 
Design/Sediment Testing and Analysis                   $0          $500,000

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 7, 2015 
Page 3 of 6 
Project Management                             $0          $100,000 
Permitting                                      $0          $245,000 
State & Local Taxes (estimated)                   $177,000          $177,000 
Total                                      $2,071,000         $3,216,000 
Budget Status and Source of Funds 
Actual spending/expense in 2015 related to the Terminal 18 Maintenance Dredging project is
expected to be approximately $2,019,000 with an additional $1,065,000 to be included in the
2016 Operating Budget. The balance of the project costs were incurred in 2013-2014. 
The 2015 Operating Budget included $1,200,000 for 2015 spending/expense related to this
project.  Accordingly, an unfavorable expense variance of ($819,000) will be created.  The
variance is attributable to an increase in dredging volume and related contaminated sediment
disposal costs, resulting in an increase in Operating Environmental Remediation costs from
$190,000 to $1,000,000.
This project will be funded by the Seaport General Fund (as part of the Alliance budget). 
Financial Analysis and Summary 
CIP     Expense Project 
Category 
Project     Renewal and Replacement 
Type 
Risk      N/A 
adjusted
discount
rate 
Key  risk Key risk factors include potential cost overruns due to project time constraints or
factors      expansion of project scope due to higher than anticipated volumes of sediment
and/or levels of sediment contamination. 
Project cost $3,216,000 
for analysis 
Business    Containers 
Unit (BU)

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 7, 2015 
Page 4 of 6 
Effect   on The estimated total project costs will have the following effect on NOI in future
business    years.  Depreciation expense will not be impacted by this project, as this
performance  dredging project is an operating expense. 
NOI (in $000's)           2013        2014        2015        2016        TOTAL 
Incremental Revenue       $0         $0         $0         $0         $0 
Incremental Op Exp.       (82)        (50)       (1,019)      (1,065)      (2,216) 
Incremental ERL Exp.        0          0        (1,000)        0        (1,000) 
NOI                ($82)       ($50)      ($2,019)     ($1,065)     ($3,216) 
Depreciation             $0         $0         $0         $0         $0 
NOI After Depreciation     ($82)       ($50)      ($2,019)     ($1,065)     ($3,216) 

IRR/NPV   N/A 
Lifecycle Cost and Savings 
Maintenance dredging may occur every three to five years to maintain T-18 at the current design
depths. 
STRATEGIES AND OBJECTIVES 
This project supports the asset preservation objective, which ensures that the Port has the 
terminal facilities needed to facilitate international trade through the Pacific Northwest. 
TRIPLE BOTTOM LINE 
Economic Development 
Maintaining container terminal vessel berths at adequate depths to assure adequate underkeel
clearance, preserves existing berth capability, and allows the container business to continue to be
safely serviced while at berth, thus preserving the jobs and economic benefit this activity
contributes to the region. 
Environmental Responsibility 
The proposed project is subject to rigorous environmental reviews.  Design and project
implementation will include practices to avoid and minimize potential negative environmental
effects during dredging. Dredged materials will be disposed of at approved locations based on
consultations with and decisions of the regulatory agencies comprising the Dredge Materials
Management Program (DMMP). 
Community Benefits 
The permit process requires notification of neighboring communities, agencies of interest and
appropriate environmental groups. Waters near Harbor Island are Treaty -protected "usual and
accustomed" fishing areas.  During the permitting process, staff will consult with the

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 7, 2015 
Page 5 of 6 
Muckleshoot and Suquamish Tribes with the objective of avoiding potential disruption of Treaty
fishing access. 
The project manager will collaborate with the Office of Social Responsibility to maximize the
opportunities for small business participation. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Do not proceed with maintenance dredging at T-18
Pros: 
Defers costs to the future. 
Cons: 
Increases risk of vessel keels hitting bottom while at berth during low tide cycles, which
compromises vessel operations and stability 
Increases risk of restricting vessel access into and out of T-18 during low tide cycles  
delaying vessel operations at the terminal and/or reducing cargo loading capacity of
vessels 
Increases vessel operating costs and consequently compromise customer service to
carriers and shippers due to restricted berth depths 
Increases shipping costs for cargo owners using Alliance and Port facilities due to
restricted berth depths 
Possible loss of existing and future customers to other port regions 
Alternative 2)  Proceed with construction of maintenance dredging at T-18 
Pros: 
Provides adequate depth underkeel for containerships berthing at T-18 
Provides reliable conditions to operate Post-Panamax containerships at T-18 
Minimizes impact to operations due to short period of time for construction phase of
maintenance dredge work 
Improves efficiency by using on-call construction contract for smaller maintenance
dredging projects. 
Cons: 
Requires investment on the part of the Port. 
This is the recommended alternative.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
July 7, 2015 
Page 6 of 6 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
February 10, 2015 Terminal 18 Berth Maintenance Dredging; Major Construction On-call
Contract for Dredging and Piling Repairs and Removal