PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      5c 
Date of Meeting   September 28 , 2010 

DATE:    August 31, 2010 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Michael Burke, Director, Cargo and Container Operations 
Ticson Mach, Capital Project Manager 
SUBJECT:  Fender Piling Replacement at Terminal 18 
CIP #C800416 T-18 Fender Replacement 
Amount of This Request:   $4,724,000      Source of Funds: General Fund 
Est. State and Local Taxes: $387,000        Est. Construction Jobs Generated: 44 
Total Project Cost:       $5,738,000 
ACTION REQUESTED:
Request authorization for the Chief Executive Officer to (1) advertise construction project, (2)
execute a contract to purchase timber piling, and (3) execute construction contract award in
accordance with Resolution 3605 procedures for the replacement of the damaged fender piling at
Terminal 18 (T-18) in the amount of $4,724,000, for a total funding authorization of $5,738,000. 
SYNOPSIS:
The project will replace the fender piles and supporting members at T-18. The fender system is
designed to protect the main apron structure of the dock from the initial impact made by a
berthing barge/vessel. The fender system for this portion of T-18 was replaced in 2003/2004, but
in January 2009, it was found to have a combination of design and construction errors which
contributed to the apron structure experiencing damage during normal berthing activities.  On
April 6, 2010, the Commission authorized replacing 30 broken piles, approximately 15% of the
fender system. An additional 31 broken piles were later discovered, and on August 3, 2010, the
Commission authorized funds for preparation of design and permit applications to replace the
entire fender piling and its supporting members. This request is to move forward with
advertising the construction project and authorizing the Port to purchase timber piling. The preadvertisement
notice has been posted on September 17, 2010. The total estimated cost of the
project is $5,738,000.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 31, 2010 
Page 2 of 5 
PROJECT DESCRIPTION AND JUSTIFICATION: 
The project is located within bent 62 to 162 (approximate footmark 2900 to 4900) at T-18 along
the waterside of the concrete apron. Periodic repair and replacement of fender piles is typical
during the life of the system. The scope of work consists of replacement of the fender piles and
their supporting members. The cost estimate for the project is $5,738,000. It is projected to be
completed in 2012 to 2013. 
The fender system for this portion of the T-18 dock was replaced by the port as part of the berth
deepening project in 2003/2004. This deepening to -50 feet was an obligation of the port per the
T-18 lease. 
The fender system damages were first discovered in January 2009 during the Terminal 18
Maintenance Dredging Project. Port Engineering conducted a detailed inspection of the damages
in August 2009, and concluded that the damages are a combination of design and construction
issues. 
The broken fender piles create a void in the fender system. With barges or small vessels berthing
at an angle, the front corners of the barges or vessels could reach and hit the structural/bearing
concrete piles. Split piles will also have less fendering capacity in keeping the vessels from
going underneath the dock. The apron structure is exposed to possible damage with ongoing
berthing activities.
Following the approval of the Commission on April 6, 2010, staff proceeded with the design for
the replacement of 30 broken piles, associated supporting structures, and permitting applications.
The design team subsequently discovered an additional 31 broken piles during a May 6, 2010 
field inspection. With growing concern of continued damages to the remaining fender piling,
Seaport Investment Committee directed the project team to move forward with the replacement
of all timber fender piles between bent 63 and 162. On August 3, 2010, Commission authorized
design and permitting for the entire fender piling to be replace. The pre-advertisement notice has
been posted on September 17, 2010.
Port staff has determined that replacing the fender piles is a lease obligation of the Port, which
maintains the Port's competitiveness by keeping the T-18 container berthing area active, and
protecting the dock revenue that the Port receives. 
PROJECT SCOPE OF WORK AND SCHEDULE: 
The scope of work consists of replacement in-kind of timber fender piles and their supporting
members. 
The construction will be phased in two in-water work windows to minimize the impact on
terminal operation, accommodate limited in-water work window, and the long lead time for piles
purchase.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 31, 2010 
Page 3 of 5 
Tentative Project Schedule: 
Commission Authorization for Design                 April 06, 2010 
Procure Engineering Services                        April 23, 2010 
Permit Submitted                               May 23, 2010 
Commission Authorization for Additional Design Funding     August 2, 2010 
100% Design Completed                        August 31, 2010 
Commission Authorization for Construction              September 28, 2010 
Estimated Begin Construction                       January 03, 2011 
Estimated Construction Complete                    March 15, 2012 
STRATEGIC OBJECTIVES: 
This project supports the Port's strategies to "Ensure Airport and Seaport Vitality" by: 
Meeting lease obligation. 
Maintaining our ability to remain competitive by keeping all of Terminal 18 container
berthing area active.
Meet Environmental Obligations 
The project will meet environmental obligations by: 
Acquiring all necessary and required permits from appropriate agencies prior to start of
construction; 
Complying with all conditions stipulated by permit authorizations 
Using best management practices during construction to limit water quality impacts. 
Using vibratory impact pile driving to limit noise impacts to endangered species.
Removal of creosote piling as mitigation for water quality impacts. 
BUSINESS PLAN OBJECTIVES: 
The purpose of the project is to maintain the use of berth and to meet lease commitments. 
FINANCIAL ANALYSIS: 
Budget/Authorization Summary 
Previous Authorizations (by Seaport Division Director)                   $ 130,000 
Previous Authorizations (by Commission authorization)                   $ 884,000 
Subtotal Prior Authorizations                               $1,014,000 
Current request for authorization                              $4,724,000 
Total Authorizations, including this request                       $5,738,000 
Remaining budget to be authorized                                $0 
Total Estimated Project Cost                                $5,738,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 31, 2010 
Page 4 of 5 
Project Cost Breakdown 
Construction Costs                                    $4,337,000 
Interim Repair Work (Maintenance)                            $66,000 
Soft Costs                                              $948,000 
Estimated State and Local Taxes                              $387,000 
Total Estimated Project Cost                               $5,738,000 
Source of Funds 
The $66,000 cost of interim repair work (banding of select piles to minimize further splitting)
was recorded as an operating expense in 2009 ($22,000) and 2010 ($44,000). 
The T-18 fender replacement project was not anticipated in the 2010 Plan of Finance, as the full
extent of the fender damage was not known when the 2010 Capital Plan was prepared. Funding
for this project is available due to project deferrals or timing delays on other 2010 Plan of
Finance Committed projects, such as the Terminal 18 Pile Cap Improvements project. 
This project will be funded from the general fund. 
Financial Analysis Summary 
CIP Category        Renewal/Enhancement 
Project Type         Renewal & Replacement 
Risk adjusted Discount  7.0% 
rate 
Key risk factors        Key risk factors include potential cost overruns due to project
complexity/timeframe and permitting delays. 
Construction costs may increase if unknown obstructions are
encountered during piling installation. 
Procurement of treated timber piling is a long lead item.
Delays in contract award timing or materials delivery may
adversely impact the planned construction schedule. 
Project cost for       $5,738,000 (cost estimate based on final design) 
analysis 
Business Unit (BU)     Container Operations

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 31, 2010 
Page 5 of 5 

Effect on business     Fender system replacement will preserve existing revenue from
performance        Terminal 18 container operations.
At project completion, incremental depreciation expense from the
fender replacement project is estimated at $567,200/year, based on a
10 year asset life.
IRR/NPV       No incremental revenue. NPV is present value of project costs. 
NPV
($5,202)
(in $000's)
SUSTAINABILITY AND LIFE CYCLE COSTS: 
Due to premature failure of the fender piling, the Port will replace the broken piles with in-kind
material to fulfill lease obligation. Port tenant is obligated to perform future maintenance of the
fender system. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Three piling replacement alternatives were explored throughout the Seaport Investment
Committee approval process, however; as authorized by the Commission on August 3, 2010,
replacement of all timber fender piling in the affected area is the recommended option. This
would best enable the division to minimize further risk of operation impact, and damage to apron
structure 
Previously approved alternative: Proceed to advertise construction project, execute a contract to
purchase of timber piling, and execute construction contract if there are no bid irregularities for
the replacement of the entire fender piling and its supporting members the total project cost of
$5,738,000.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
April 6, 2010: Authorization of $143,000 for a total authorization of $273,000, for design and
permitting for the repair of the damaged fender system at Terminal 18. 
August 3, 2010: Authorization of $741,000 for additional funding for design and permitting for
the replacement of the entire fender piling and supporting members at Terminal 18.