PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       6d 
ACTION ITEM             Date of Meeting   August 14, 2012 
DATE:    August 3, 2012 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Scott Pattison, Seaport Asset Manager 
Catherine Chu, Capital Project Manager 
SUBJECT:  Terminal 5 and Terminal 18 Berth Maintenance Dredging 
Amount of This Request:  $1,950,000       Source of Funds:    General Fund 
Est. State and Local Taxes: N/A            Est. Jobs Created:   N/A 
Est. Total Project Cost:    $4,600,000 
ACTION REQUESTED: 
Request Commission authorization for the Chief Executive Officer to direct staff to develop
design documents, conduct sediment testing and environmental review, obtain permits, and
prepare construction documents for the Terminal 5 and Terminal 18 Maintenance Dredging
Project for an estimated cost of $950,000, and to advertise for bids and award major construction
contracts for the first phase of Terminal 5 and Terminal 18 Maintenance Dredging Project for an
estimated cost of $1,000,000. The total project cost is estimated at $ 4,600,000. 
SYNOPSIS:
The purpose of this project is to restore the berths at Terminals 5 (T-5) and Terminal 18 (T-18) to
their designed depths to ensure that these terminals remain accessible to deep-draft cargo vessels
currently in service. The Port is not specifically obligated by the lease to dredge at T-5 but the
Port has performed maintenance dredging at T-5 and other terminals in the past. At T-18 the
Port has a lease obligation to maintain berth depth at -50'. At T-5 the Port would dredge two
berths (berths 2 and 3) to a minimum of -50' and the south berth (Berth 1) to a minimum of -45',
all of which are the design depths. The need for dredging at T-5 was triggered by recent changes
in vessel rotations and increase in vessel size at T-5. Dredging at T-5 south berth in 2012 is
especially urgent, and due to its relatively smaller volume, it's feasible. The remainder of T-5
dredging has to wait till 2013 due to the volume involved and need for additional sediment
testing and permitting. The Port will only perform maintenance dredging at T-18 if the current
permits allow for this dredging. If new permits and related testing are required at T-18, staff will
have to request additional authorization. Dredging volume at T-18 are not significant today. If
no new permits are required, performing that limited amount of dredging now will be cost

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 3, 2012 
Page 2 of 6 
effective. This request is for authorization to proceed with design and environmental permitting,
and to proceed with construction of the first phase of the project at the south berth of T-5 and
high spot removals at T-18 in 2012. Staff will return to the Commission to seek additional
authorization for construction of the remaining scope of the project in 2013. This project is in
the 2012 Seaport Operating Expense budget. 
BACKGROUND: 
In the past decade, maintenance dredging has been required to meet essential navigational access
needs at existing marine cargo facilities. Recent projects include maintenance dredging at T-46
(2004), T-30 (2006), T-91 (2006), T-18 (2008), and T-5 (2010). The need for periodic
maintenance dredging is expected to continue due to the greater frequency of deep-draft vessels
calling at the Port requiring full design depth. Port continues to study the cause of the
sedimentation, including vessel operations and sediment transportation from upstream of the
Duwamish River. 
The 2008 T-18 Maintenance project restored all four of the container berths to -50' consistent
with the Port's lease agreement with the tenant. The 2010 T-5 Maintenance Dredging project 
dredged Berth 2 to a minimum of -50' while maintaining Berth 3 and part of Berth 1 (south
berth) at -45'. The proposed project would continue to maintain all T-18 berths at -50'; and at 
T-5 maintain Berths 2 and 3 at a minimum of -50' and part of Berth 1 at -45'. 
PROJECT JUSTIFICATION: 
The proposed project would restore berths at T-5 and T-18 to their designed depths, in addition
to fulfilling the Port's lease obligation at T-18.
Project Objectives: 
Maintain required navigation depth for deep draft container vessels; 
Acquire all necessary and required permits from appropriate agencies prior to start of
construction; 
Comply with all conditions stipulated by permit authorizations; 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
This authorization is for design and permitting for maintenance dredging at T-5 and T-18, which
will be performed by Port staff with support from outside consultants under an existing indefinite
delivery, indefinite quantity (IDIQ) contract, and for construction of the first phase of the project,
which is dredging at the south berth at T-5 and high spot removals at T-18 in 2012, if we can
receive permits in time, to meet urgent operations requirements. Construction of the first phase
of T-5 and T-18 maintenance dredging in 2012 is subject to fast-track design, permitting, and

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 3, 2012 
Page 3 of 6 
contracting, which inherently carries elevated risks and costs. Risks include delayed permits
causing project missing critical in-water construction window in the winter of 2012; engineers
may determine that dredging is not feasible without costly structural upgrades to the slope under
the dock; and much higher incremental construction cost due to smaller volume dredging as a
separate contract and possible additional permit conditions due to short permit review time. All
of the phase one material will be disposed of at the approved upland disposal sites due to lack of
time to test the material further for open-water disposal. The remainder of the project, primarily
consisted of dredging T-5 Berth 3 (1000') from -45' (typical) to -50' design depth (plus advance
maintenance dredging and over-dredging allowance as allowed by permits) and any additional
high spot removals at T-5, is planned for construction in 2013. This phase of the project
involves much greater dredging volume and requires additional sediment characterization and
environmental reviews. Staff will return to the Commission in 2013 for final project
authorization before proceeding with construction of future dredging that's planned for 2013. If
any part or all of phase one construction could not be accomplished in winter of 2012 due to the
risks mentioned above, staff will return to the Commission for its reauthorization as part of the
2013 project. 
Schedule: 
Design and permitting efforts will begin immediately following Commission authorization.
Construction of phase one of the project would begin in December 2012 and be completed by
February 2013. It is anticipated that design and permitting for the remainder of the project will
be completed by spring of 2013, at which time staff will return to the Commission to request
additional project authorization for construction. Additional construction is planned to occur
from December 2013 to February 2014. 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary: 
Previous Authorizations                                           $0 
Current request for authorization                            $1,950,000 
Total Authorizations, including this request                          $1,950,000 
Remaining budget to be authorized (pending design & permitting results)          $2,650,000 
Total Estimated Project Cost                                  $4,600,000 
Project Cost Breakdown:                   This Request      Total Project 
Construction (includes environmental remediation work)            $950,000         $3,300,000 
Construction Management                     $50,000        $110,000 
Design and Environmental Studies                 $690,000         $690,000 
Project Management                        $120,000        $120,000 
Permitting                                 $140,000         $140,000 
State & Local Taxes (estimated)                          $0          $240,000 
Total                                     $1,950,000        $4,600,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 3, 2012 
Page 4 of 6 
Budget Status and Source of Funds: 
The 2012 Operating budget included $500,000 for design and permitting costs related to the
Terminal 5 phase II maintenance dredging. Actual spending in 2012 from this authorization is
expected to be $500,000, which is the amount budgeted for 2012. The balance of spending from
this authorization is scheduled for 2013, and will be included in the 2013 Operating Expense
Budget. 
It is expected that approximately $811,000 of the project construction costs (including disposal
of contaminated sediment) will be operating environmental remediation liability work. 
The total cost of this project will be funded from the general fund. 
Financial Analysis and Summary: 
CIP Category            Expense Project 
Project Type             Renewal and Replacement 
Risk adjusted discount rate    N/A 
Risk adjusted discount rate    N/A 
Key risk factors             Key risk factors include potential cost overruns due to project
time constraints or expansion of project scope due to higher
than anticipated levels of sediment contamination. 
Permit requirements assume a narrow construction window
between December and February, which impacts bid pricing. 
Permit delays could result in project scheduling delay until a
subsequent "fish window" for construction. 
Agencies could impose additional permit conditions beyond
current project scope. 
Engineers may determine that dredging is not feasible without
costly structural upgrades to the slope under the dock. 
Project cost for analysis       $4,600,000 
Business Unit (BU)         Container Operations 
Effect on business          The estimated total project costs will have the following effect on
performance            NOI in future years. Depreciation expense will not be impacted
by this project, as this dredging project is an operating expense. 
NOI (in $000's)          2012    2013    2014    TOTAL
Incremental Revenue - - - - 
Incremental OpExp        (500)   (1,250)       (2,850)       (4,600) 
NOI              ($500)  ($1,250)  ($2,850)  ($4,600)
Depreciation              $0      $0      $0      $0
NOI After Depreciation    ($500)  ($1,250)  ($2,850)  ($4,600) 
IRR/NPV            N/A

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 3, 2012 
Page 5 of 6 
Lifecycle Cost and Savings: 
Maintenance dredging may occur every 3 to 5 years to maintain the berths at T-5 and T-18 at the
current design depths. 
STRATEGIC OBJECTIVES: 
This project supports the asset preservation objective. 
ENVIRONMENTAL SUSTAINABILITY: 
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.
BUSINESS PLAN OBJECTIVES: 
Maintain existing customer service and allow the container business to grow. Maintaining
design depth is a lease obligation at Terminal 18. Though not a specific obligation of the lease at
Terminal 5, the Port has performed maintenance dredging at T-5 and other port terminals in the
past.
TRIPLE BOTTOM LINE SUMMARY: 
The proposed project is subject to rigorous environmental reviews. Permitting and
construction will follow best management practices to ensure minimal negative
environmental impact.
Maintaining container terminals at adequate depths for navigation maintains existing
customer service and allows the container business to grow. 
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. The Muckleshoot and Suquamish Tribes will be consulted
during the permitting process, with the objective of avoiding potential disruption of Treaty
fishing access. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1: Proceed with design and permitting for maintenance dredging at T-5 and T-18.
This is the recommended alternative. 
Alternative 2: Do nothing and restrict access to T-5 and T-18 during low tide. This would delay
vessel operations, compromise customer service, and may result in possible loss of existing and
future customers to other ports. This is not the recommended alternative. The Port would also

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 3, 2012 
Page 6 of 6 
not be meeting its lease obligations at Terminal 18 if maintenance dredging is not done at some
point.
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
None