COMMISSION 
AGENDA MEMORANDUM                Item No.       4j 
ACTION ITEM                   Date of Meeting    December 13, 2016 
DATE:    December 6, 2016 
TO:     Ted Fick, Chief Executive Officer 
FROM:   Rod Jackson, Capital Project Manager 
Kenneth R. Lyles, Director, Fishing & Commercial Operations 
SUBJECT:  Fishermen's Terminal Net Sheds 3, 4, 5, and 6 Roof Replacement (CIP #C800526) 
Amount of this request:          $2,989,000 
Total estimated project cost:       $3,259,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to (1) proceed with the
construction phase of the Fishermen's Terminal Net Sheds 3, 4, 5, and 6 Roof Replacement
Project and solar demonstration installation on Net Shed 5 and (2) advertise and execute a
major public works contract for the roof replacement, all for an amount not to exceed
$2,989,000 for a total estimated project cost of $3,259,000. 
EXECUTIVE SUMMARY 
This project will replace the existing built-up roofing systems at Fishermen's Terminal Net Sheds
3, 4, 5, and 6 (FT NS) because they are at the end of their service lives, while adding a
photovoltaic solar array system on Net Shed 5 as a demonstration project to help determine
future solar panel installation opportunities at the Port.
After installation of the solar panels on Net Shed 5, the information gained will allow the Port to
determine: 
How to best implement solar power on future Port projects, 
Costs associated with solar panel and equipment design and installation, 
What the solar energy production of the panels will be, 
How the power generated from the panels affects the existing FT power grid, 
What to look for with respect to the maintenance of the entire system including the
warranty requirements, and 
How the solar panel framing and piping will wear on the new roofing system. 
The information generated from the demonstration project will also be captured by the
proposed public interpretation plan laid out per the future indoor and outdoor interpretive
facilities at the Terminal.

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. ____                      Page 2 of 7 
Meeting Date: December 13, 2016 
The total estimated project cost of $3,259,000 is $73K higher than the amount shared with the
Commission at the design phase funding request but below the 2016 Plan of Finance.
Additional electrical and related work were identified during design and contributed to the
incremental increase. 
JUSTIFICATION 
The proposed project will preserve important building assets and revenues associated with the
leased storage space, extend the life of the building structures, and minimize potential Port
liability. Proactive asset stewardship is the key to reducing the total cost of ownership to the
Port over time. Per lease agreements with affected tenants, the maintenance and repair of the
roof is an obligation of the Port. Net shed storage is one of the terminal's amenities that helps
retain fishermen as tenants and is part of the infrastructure that will be required to "position
the Puget Sound region as a premier international logistics hub", "doubling the economic value
of the fishing and maritime sectors" and be the greenest and most energy efficient port in
North America as envisioned by the Century Agenda. Approval of this authorization will not
affect the long-term development plan for the terminal. This project was included in the 2016
Plan of Finance. 
Due to the type of project, elements within this scope of work support small and Minority and
Woman Business Enterprise (MWBE) utilization. The project manager will coordinate with the
small business team in the Economic Development Division to maximize the small business
participation. 
DETAILS 
Construction of the Fishermen's Terminal Net Sheds 3, 4, 5, and 6 took place in 1944, 1953, and
1956. The existing four roofing systems cover approximately 50,234 square feet in total and
range from approximately 58 to 70 years old. Fishermen's Terminal, located on Salmon Bay, is
a regional center for maritime activity and one of the few working terminals in the United
States with public access net shed buildings. 
The buildings are 100 percent occupied and primarily used as net shed storage spaces leased
within the maritime industry. Fishermen's Terminal is the home port of the North Pacific
fishing fleet and the long-term plan has assumed that net shed storage will continue to be a
core function at Fishermen's Terminal. In 2012, the Port initiated condition assessments and
again in 2015, the assessments determined the roof systems on Net Sheds 3, 4, 5, and 6 were at
the end of their service lives. 
This project will replace the existing roofing system with a 30-year, 3-ply modified bitumen 
roofing system complete with new security ladders, gutters, and fall protection system. It will
also install forty four (44) crystalline solar panels with an estimated 11,000 kWh power
production capacity, and would take Net Shed 5 completely off the FT electrical grid, supply

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. ____                      Page 3 of 7 
Meeting Date: December 13, 2016 
excess power to the electrical grid, offset approximately $843 per year in power consumption,
and reduce greenhouse gas by approximately 279 lbs. per year. 
This project also evaluated installation of rain barrel stormwater treatment system for roof
runoff. With location of the roofs and planned maintenance, and the fact Net Sheds 5 and 6
roof runoff discharges directly to the City's combined sewer system which would be treated by
King County' wastewater treatment plant, rain barrel stormwater treatment system was
determined to have relatively low benefit and thus not recommended for implementation. 
Scope of Work 
The scope of work for the Fishermen's Terminal Net Sheds 3, 4, 5, and 6 roof replacements
includes the construction and installation for the following:
New energy-efficient roofing systems 
Bird deterrent systems 
Installation of security access ladders 
Fall protection and attachments 
Install a crystalline solar panel system at Net Sheds 5 to serve as a demonstration
project that will provide 100 percent of the electrical usage for Net Shed 5 and provide
any excess power to the FT power grid 
Utilize environmentally sustainable components and construction methods, as
appropriate,  such as:  idling control measures, waste minimization and selecting
materials with limited toxicity and greenhouse gas emissions. 
Schedule 
The design and permitting phase will be completed by December 2016 with the construction
phase expected to begin in Q2/2017 and be fully complete by Q4/ 2017. 
Activity 
Commission design authorization          2016 Quarter 3 
Design start                          2016 Quarter 3 
Commission construction authorization       2016 Quarter 4 
Construction start                      2017 Quarter 2 
In-use date                          2017 Quarter 4 
Cost Breakdown                 This Request      Total Project 
Design                               $0         $270,000 
Construction                     $2,989,000        $2,989,000 
Total                             $2,989,000        $3,259,000 


Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. ____                      Page 4 of 7 
Meeting Date: December 13, 2016 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Status Quo - Maintain the current state and delay replacement of the net shed
roofs. Maintenance costs of $21,050 annually (averaged over 12 months) will continue. 
Cost Implications: $2,989,000 of additional project funding will not be needed. 
Pros: 
(1)   No additional major capital funding would be required. 
(2)   Allows port to reallocate capital investment dollars. 
Cons: 
(1)   Increases the chances that the interior of the facility will be damaged due to water
infiltration. 
(2)   Increase of probable construction costs in the future while emergency repair costs
continue to increase. 
(3)   The cost of a future roofing project in the event of roof failure would be higher which
would include the cost of this request and costs associated with escalation,
implementation of emergency work, lost revenue, and equipment and property 
damages.
(4)   Safety of the tenant could be compromised due to the slip hazard to tenant and
employees. 
(5)   Indefinite deferral could also lead to the risk of catastrophic failure. 
(6)   Maintenance cost will continue. 
This is not the recommended alternative. 
Alternative 2  Replace the entire existing roofing system with a modified bitumen 3-ply roof
that has a 30 year life and install a new security ladder, gutters, and fall protection system. 
Cost Implications: $2,516,000 of project funding is needed to complete the project. 
Pros: 
(1)   Install entirely new Modified Bitumen 3-ply Roofing and gutter system that will
protect our assets and have a 30 year life span and serve the Port and the tenants
well. 
(2)   Replacing the roof, security ladders, gutters, and fall protection systems will provide
the lowest lifecycle cost. 
(3)   Helps to assure a stronger positive tenant experience and avoids potential safety
hazards. 
(4)   Provides protection of Port assets. 
(5)   Increase safety with the installation of fall protection. 
(6)   This project would provide for a warranted roof that will minimize the cost of repairs 
going forward for the foreseeable life of the roof. 
Cons: 
(1)   This alternative would need additional $2,516,000 funding that might otherwise be
made available for other uses on other projects. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. ____                      Page 5 of 7 
Meeting Date: December 13, 2016 
(2)   The cost of a future roofing project in the event of roof failure would be higher which
would include the cost of this request and costs associated with escalation,
implementation of emergency work, lost revenue, equipment and property damages.
(3)   Foregoes the opportunity to install solar panels on the Net Shed 5 roof. 
This is not the recommended alternative. 
Alternative 3    Replace entire existing roofing system and gutters with a 20-year PVC
membrane roofing system, security ladders, gutter, and fall protection system replacements. 
Cost Implications: $2,505,000 in project funding will be needed and another roof installation
would be required in year 20 instead of year 30 as identified in Alternative 2. 
Pros: 
(1)   The roofing and gutter system investment will protect our assets for 20 years. 
Cons: 
(1)   This roof will need replacement in 20 years. 
(2)   Foregoes the opportunity to install solar panels on these roofs. 
(3)   This alternative uses $2.50 million of capital that might otherwise be made available
for other uses on other projects. 
This is not the recommended alternative. 
Alternative 4 - Replace the existing roofing system with a modified bitumen 3-ply roof that has
a 30-year life, with new security ladders, gutters, and fall protection system as in Alternative 2
plus installation of a solar panel system on the Net Shed 5 to serve as a demonstration project
that would produce approximately 11,000 kWh of power per year and would remove Net Shed 
5 off of the FT electrical grid and allow excess power for other uses elsewhere in the terminal. 
Cost Implications: Additional cost of $2,989,000 of project funding is needed to complete the
project. This amount includes $473,000 for the solar panel system installation.
Pros: 
(1) This solar panel installation will provide and generate approximately 11,000 kWh of
power per year (the current usage is approximately 9,934 kWh per year for the Net
Shed 5). 
(2) This installation could potentially save approximately $843 per year in electrical
energy costs (at current rates), reducing yearly operating costs. 
(3) Replacing grid-produced electrical energy with renewable energy reduces
greenhouse gas emissions by about 279 lbs. of CO2/year. 
(4) Three Century Agenda goals  are met by providing renewable power systems:
reduces greenhouse gas emissions, increases renewable energy use, and conserves
energy use to meet overall energy demand. Project also plays a role in building 
clean infrastructure and demonstrates the Port's leadership in competing globally to
produce clean energy using Washington-based industries. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. ____                      Page 6 of 7 
Meeting Date: December 13, 2016 
(5) To be eligible for grants, it will be a requirement for solar panels to be manufactured
in Washington State and provide support for a growing industry. 
(6) Replacing the roof, security ladders, gutters, and fall protection systems together
during construction will provide the lowest lifecycle cost.
(7) This project provides a warranted roof that will minimize the cost of roof repairs
going forward. 
(8) This option provides the opportunity to add on for future solar panel expansions. 
Cons: 
(1) This alternative uses an additional $473,000 to include a solar panel system and
structural upgrade for Net Shed 5 or $3.259 million of capital in aggregate that might
otherwise be made available for other uses on other projects. 
(2) The cost of the solar-panel system installation does not meet normally accepted
project financial criteria for new capital projects.
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary          Capital      Expense        Total 
COST ESTIMATE 
Original estimate                      $3,186,000          $0    $3,186,000 
Revised estimate                      $3,259,000          $0    $3,259,000 
AUTHORIZATION 
Previous authorizations                   $270,000          $0      $270,000 
Current request for authorization           $2,989,000          $0    $2,989,000 
Total authorizations, including this request     $3,259,000          $0    $3,259,000 
Remaining amount to be authorized             $0         $0         $0 
Annual Budget Status and Source of Funds 
This project is included in the 2017 Plan of Finance under CIP #C800526 Fishermen's Terminal
Net Sheds 3, 4, 5, and 6 Roof Replacement in the amount of $4,268,000. 
This project will be funded by the Tax Levy. 
Financial Analysis and Summary 
Project cost for analysis         $3,259,000 (Roof $2,786,000 & Solar $473,000) 
Business Unit (BU)            Fishing & Commercial Operations 


Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. ____                      Page 7 of 7 
Meeting Date: December 13, 2016 
Effect on business performance   Roof Replacement: 
(NOI after depreciation)         This project is a renewal & replacement project and
preserves Net Operating Income (NOI). This project does
not generate additional NOI. 
Preserves Net Sheds 3, 4, 5, and 6 Net Operating Income
of approximately $260,000 per year excluding major
maintenance/compliance expenses. 
Increases depreciation expense by approximately $92,867 
per year based on a 30 year useful life for the roof. 
Solar Panels: 
Estimated impact on Net Operating Income (NOI) and
Depreciation for years 2018 through 2022: 
NOI (in $000's)       2018   2019   2020   2021   2022 
Electricity Savings       $1     $1     $1     $1     $1 
Maintenance         ($5)    ($5)    ($5)    ($6)    ($6) 
Depreciation         ($16)   ($16)   ($16)   ($16)   ($16) 
NOI After
($20)   ($20)   ($20)   ($20)   ($30) 
Depreciation 
NPV                  Roof Replacement: 
The NPV is the present value of the project cost. 
Solar Panels: 
NPV          Payback 
IRR 
(in $000's)            (in years) 
($511)      NA       NA 
CPE Impact                NA 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
December 13, 2016  The Commission was briefed on Fishermen's Terminal Strategic Plan
Update. 
September 13, 2016  The Commission authorized Design. 
May 17, 2016  The Commission was briefed on Fishermen's Terminal Long Term Strategic
Plan. 


Template revised September 22, 2016.