PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      6d 
ACTION ITEM             Date of Meeting    August 7, 2012 

DATE:    July 27, 2012 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Scott Pattison, Seaport Asset Manager 
Anne Porter, Capital Project Manager 
SUBJECT:  Terminal 18 Pilot Pile Cap Repair and Maintenance Project 
(PID #104559)
Amount of This Request: $500,000             Source of Funds: General Fund 
Est. State and Local Taxes: $15,000         Est. Construction Jobs Generated: 8 
Total Project Cost: $1,500,000 
ACTION REQUESTED:
Request Commission authorization for additional funding to complete construction of the
Terminal 18 (T-18) Pilot Pile Cap Repair and Maintenance Project at an additional cost of
$500,000 for a total project cost of $1,500,000. 
SYNOPSIS:
Construction of the T-18 Pilot Project began this March. The original scope was to repair up to
four pile caps. At this time, staff is able to complete repairs to the first two pile caps within the
original budget, and staff believes it still makes sense to repair all four pile caps. This request is
to fund the Pilot Project to enable the third and fourth pile caps to be repaired also.
The Pilot Project is helping the Port learn a great deal about the extent of deterioration and
methods to more efficiently undertake future repairs. Factors resulting in the need for additional
funds and time to repair all four pile caps under the Pilot Project include the following: 
1.  Concrete demolition  The time required for demolition has been greater than anticipated.
However, demolition experience with the first two pile caps makes it possible to more
accurately determine the amount of concrete necessary for removal and the most costeffective
means of removing it. This will ensure that future projects remove only the
concrete that needs to be replaced, using methods that are cost-effective.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 27, 2012 
Page 2 of 6 
2.  Sandblasting to clean the rust off the steel reinforcing bars  After removing the degraded 
concrete, exposed reinforcing steel must be cleaned of rust and primed before enclosing it in
new grout. The Pilot Project has helped staff learn which types of sand blasting equipment 
and materials work best, and where. It has also helped determine which types of equipment
and blasting sand are not effective. This experience will be applied to future pile cap repairs.
3.  Splicing in of new reinforcing bar - Engineering has redesigned the method of splicing in
order to speed up the process by working closely with PCS crews during the Pilot Project.
Understanding the most effective ways to splice rebar will yield efficiencies when major
repairs are undertaken. 
4.  Grout placement Delivering grout to replace removed concrete requires matching grout
pumping equipment with grout mix. The Pilot is looking for alternatives to simplify the
injection of grout while ensuring the grout used will meet the Port's design standards for
strength and durability. 
Based on experience with the first two pile caps, it is estimated that $500,000 additional funds
will be needed to complete the work.
At present, the crews could stop work after completing repairs to two of the four pile caps, and
make use of the knowledge gained so far. However, there are compelling benefits to completing
repair of all four pile caps under the Pilot. Completing the Pilot Project would allow the Port to
document production rates that might be expected after initial mobilization and set up take place
and identify ways to reduce construction cost and risk by limiting the demolition to where the
distress is occurring. The information gained by repairing all four pile caps will help predicting
timing and future costs with greater accuracy. Preliminary estimates for the larger pile cap repair
program at T-18 currently ranges from $15,000,000 to $20,000,000. 
The Commission was previously briefed on the Pilot Project on May 10, 2011. The Commission
approved increasing the funding for the project to $300,000 for design, permitting and
preparation of construction documents on May 24, 2011. The Commission approved an
additional $700,000 of construction funds on December 6, 2011, increasing the total project
funding to $1,000,000. The first half of construction is substantially complete and staff is now
prepared to move into the second half of the construction phase of work, subject to approval of
this request for authorization. This additional funding for the Pilot Project was not anticipated in
the 2012 Operating Expense Budget and will result in a negative variance in 2012.
PROJECT JUSTIFICATION: 
The Pilot Project is designed to repair and maintain up to four existing cast-in-place pile cap
beams at Terminal 18 as a means of providing practical guidance to: 
1.  Understand the extent and rate of deterioration of pile caps within our pier structures; 
2.  Analyze site conditions and more precisely determine when future repairs are required; 
3.  Prepare specific design documents and detailed project specifications on future scopes of
work;

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 27, 2012 
Page 3 of 6 
4.  Identify means to reduce risk to the Port associated with overly conservative or overly
aggressive bids on similar future Major Works contracts; 
5.  Identify means to reduce cost associated with similar and expanded future pile cap repair and
maintenance actions; and 
6.  Identify means to perform maintenance and repair actions while minimizing disruption of
cargo operations at marine terminals, avoiding negative impacts on Port tenants and
preserving revenues to the Port. 
As a function of this project, these pile caps will be repaired to extend their service lives and
preserve existing revenues. 
PROJECT STATEMENT AND OBJECTIVES: 
Project Statement: 
Conduct a pilot pile cap repair and maintenance project at Terminal 18 for less than $1,500,000
by the end of 2012. 
Project Objectives: 
Objectives under the construction phase of the Pilot Project include the following: 
Identify effective means for construction access 
Accurately estimate material and labor costs under alternative repair methodologies 
Refine repair procedures to be more time and cost-efficient 
Document repair production rates for various types of repair solutions 
Reduce disruption to marine terminal cargo operations 
Reduce the cost, time and disruption associated with pile cap repairs anticipated at T-18 and
other terminals in the future 
Determine elements to incorporate into any similar Major Works contracts to increase quality
and decrease cost and impact 
Repair up to four (4) pile caps at T-18 as part of the Pilot Project 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
The project was designed in-house and utilized Port Construction Services to demolish and
replace the underside of up to four pile caps at T-18. 
The Pilot Project's sample is representative of conditions identified on other pile caps, and
selected alternative repair techniques will be performed to gain field experience with each,
which will be useful when preparing to undertake future larger scopes of work to repair and
maintain pile caps at T-18 and at other, similar marine cargo pier structures.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 27, 2012 
Page 4 of 6 
Schedule: 
The construction schedule originally anticipated site mobilization in January 2012 and
completion of repairs and demobilization by June 2012. However, due to other projects in the
area and tenant operations, a 2-month delay occurred, and work started in March. The table
below reflects key milestones to date and targeted through the Pilot Project's close-out. 
Start               Finish 
Pre-Design              January 2011         May 2011 (Completed) 
Design                June 2011          August 2011 (Completed) 
Permits                August 2011         October 2011 (Completed) 
Construction             January March 2012    May November 2012 (In Progress) 
Project Construction Report   January October 2012   June November 2012 
Project Close-Out          November 2012       December 2012 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary 
Original Budget                                                $0 
Previous Authorizations                                      $1,000,000 
Current request for authorization                                  $ 500,000 
Total Authorizations, including this request                           $1,500,000 
Remaining budget to be authorized                              $ 0 
Total Estimated Project Cost                                   $1,500,000 
Project Cost Breakdown 
Project Cost Breakdown:                   This Request       Total Project 
Construction                               $281,000         $1,052,000 
Construction Management                    $ 1,000        $ 45,000 
Design                                  $ 13,000        $ 119,000 
Project Management                        $ 36,000       $ 90,000
Permitting                                 $ 14,000         $ 30,000 
State & Local Taxes (estimated)                  $ 6,000        $ 15,000 
10% Construction Contingency                  $149,000        $ 149,000 
Total                                     $500,000         $1,500,000 
Source of Funds 
This project was included in the 2012 Operating Budget in the amount of $700,000, based on the
project cost estimate and the project completion schedule available at the time the budget was
developed. Due to the increase in total project costs of $500,000 and timing differences of

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 27, 2012 
Page 5 of 6 
$210,000 on the schedule of project work completed in 2011 and 2012, an unfavorable operating
expense variance of $710,000 is anticipated in 2012. The Seaport Division expects to have
offsets to this unfavorable variance through increased revenue or through operating expense
reductions in the current year.
This project will be funded from the General Fund. 
Financial Analysis Summary: 
CIP Category           N/A 
Project Type             Repair (expense project) 
Risk adjusted Discount Rate   N/A 
Key Risk Factors           Project does not accomplish stated objectives 
Cost to construct the pilot exceeds the stated budget 
Project is not completed by stated schedule 
Project Cost for Analysis     $1,500,000 
Business Unit (BU)         Container Operations 
Effect on Business         The T-18 Pile Cap Pilot Project has been undertaken to
Performance            provide knowledge and experience in order to develop cost
effective approaches for larger scale pile cap repairs at T-18
and other marine terminals. 
The impact of this pilot project on Net Operating Income
Before Depreciation is shown below. Depreciation Expense
will not be impacted by this project, as this pilot project is an
operating expense.
NOI (in $000's)             2011    2012  TOTAL
Incremental Revenue - - - 
Incremental OpExp          (90)   (1,410)       (1,500) 
NOI Before Depreciation     ($90)  ($1,410)  ($1,500)
IRR/NPV            N/A 
BUSINESS PLAN OBJECTIVES: 
Proceeding with the second half of the construction phase of the Pilot Project will ensure
additional knowledge is gained to benefit future repairs.
STRATEGIC OBJECTIVES: 
This project supports Seaport Economic Vitality by analyzing and evaluating the service-life
requirements of aging infrastructure assets and implementing repair and maintenance solutions in
a cost-effective manner, while minimizing and avoiding potential disruption of tenant cargo
operations.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 27, 2012 
Page 6 of 6 
ENVIRONMENTAL SUSTAINABILITY: 
Project construction includes practices to avoid and minimize potential negative
environmental effects. The pilot project also identifies repair and maintenance methods,
materials, and practices for effective under-pier work while avoiding release of deleterious
materials to the environment and reducing the potential for adverse effects on aquatic area
natural resource values. 
Timely repair and maintenance extends the service life of existing infrastructure, as an
alternative for avoiding more environmentally disruptive and resource/materials consumptive
large scale structure replacement actions. 
TRIPLE BOTTOM LINE: 
Extending the useful service life of our existing assets defers eventual replacement costs for a
longer period of time, supporting the economic vitality of our operations. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1: Continue the pilot repair and maintenance project and use the results of design,
planning and construction experience to improve efficiency of similar projects in the future,
including cost-effectiveness, schedule, and operational impacts on working terminals. This is
the recommended alternative. 
Alternative 2: Cease construction activities and demobilize from site to avoid further expense on
the pilot project. This alternative is not recommended due to the loss of opportunity to observe
accelerated production rates on second half of construction. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
PowerPoint presentation 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
May 10, 2011, the Commission was briefed on this project.
May 24, 2011, the Commission authorized increasing the funding for the project to $300,000
for design, permitting and preparation of construction documents.
December 6, 2011, the Commission authorized start of construction and increased the
funding for the project to $1,000,000.