PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      6b 
Date of Meeting     July 27, 2010 

DATE:    June 28, 2010 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Darlene Robertson, Director, Harbor Services, Real Estate Division 
Kenneth Lyles, General Manager, FT/Maritime Industrial Center 
Tim Leonard, Project Manager, Capital Development Division 
SUBJECT:  Construction Funding for the Maritime Industrial Center (MIC) Central
Seawall Replacement project CIP #C800175 
Amount of This Request: $2,240,000        Source of Funds: Tax Levy 
State and Local Taxes Paid: $170,000        Est. Workers Employed: 17 
Total Project Cost: $2,650,000 
ACTION REQUESTED: 
Request authorization to advertise for construction bids, award the contract, and construct
the MIC Central Seawall Replacement project for an estimated cost of $2,240,000 
bringing the total authorized amount of this project to $2,650,000. 
SYNOPSIS: 
Staff requests approval for construction funding for the replacement of approximately
250 lineal feet of existing steel sheet pile seawall between the West and Central Piers at
the Maritime Industrial Center (MIC) which has exceeded its service life and is at risk of
structural failure. The replacement of this seawall section will alleviate the existing
structural safety concern and consequently allow resumption of tenant vessel
loading/unloading and vehicle parking operations along it. 
BACKGROUND: 
Since purchasing the Maritime Industrial Center from the United States Coast Guard in
1992, the Port of Seattle has operated it as a commercial marine facility serving 
numerous tenants. In addition to its upland interior office/workshop/storage spaces and 
secured parking and work yard areas, the MIC currently contains 1,518 linear feet of

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 28, 2010 
Page 2 of 6 
dock space for marine loading and repair work and provides moorage for vessels up to
250 feet in length.
In February 2007, severe corrosion was detected along the waterline at the oldest steel
sheet pile section of the seawall - installed in the 1930s and consisting of approximately
250 lineal feet in length between the West and Central Piers - during a dock pile
condition survey being performed by Harbor Consulting Engineers. Upon further
inspection by Port personnel, it was discovered that the corrosion has resulted in
perforation of the sheet piling and significant loss of fill material under limited portions
of the pavement immediately behind the seawall. Due to a potential structural safety
concern, a decision was made by the Port to prevent any further parking of vehicles along
this length of the seawall until the concern is resolved. Consequently, ecology block
barriers were installed in this area and vessel loading/unloading directly to or from
vehicles has since been unavailable along this section of the seawall. In a ddition to the
aforementioned surface water inspections, an underwater investigation of the steel pile
was performed by Echelon Engineering, Inc. in August 2007. The finding of this
investigation was that this steel pile seawall section is in poor overall condition due to
significant corrosion, and consequently, is in need of replacement. 
PROJECT JUSTIFICATION:
This is a safety issue. The improvement is needed as the existing sheet pile seawall 
section is in poor condition due to corrosion and resultant perforations in the steel which
have in turn led to fill material being lost from under the pavement immediately behind
the bulkhead. Consequently, this bulkhead section and the affected adjacent pavement
area are at risk of structural failure. Vehicle parking as well as vessel loading/unloading
along this section of the seawall is currently closed off pending its replacement. 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
The project scope will include the following: 
installation of approximately 250 LF of new steel sheet piling 
rerouting of electrical utilities as required for the new sheet pile installation 
construction of a new cast-in-place concrete cap over the old and new steel sheet pile
sections 
installation of compaction grouting for structural subgrade support of pavement
behind existing seawall section 
removal of several creosote treated timber piles and an abandoned marine rail system
as mitigation for aquatic area fill and increased overwater coverage from new sheet
piling

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 28, 2010 
Page 3 of 6 
re-grading and replanting of shoreline in proposed mitigation area 
installation of applicable temporary soil erosion control measures 
Schedule: 
Design and permitting is to be completed by August 2010. In-water construction is to be
completed by April 15, 2011 (at the end of the freshwater fish window). All construction
is anticipated to be completed by summer 2011. 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary 
Original Budget                                           $0 
Previous Authorizations                                  $410,000 
Current request for authorization                             $2,240,000 
Total Authorizations, including this request                      $2,650,000 
Remaining budget to be authorized                              $0 
Total Estimated Project Cost                              $2,650,000 
Project Cost Breakdown 
Construction                                        $1,750,000 
Construction Management                              $190,000 
Design                                           $350,000 
Project Management                                  $115,000 
Environmental & Permitting                               $75,000 
State & Local Taxes (estimated)                             $170,000 
Total                                                $2,650,000 
Source of Funds 
The MIC Seawall Replacement project was included in the 2010 Draft Plan of Finance as
a committed project in the amount of $2,111,000 under CIP C800175.  The additional
funding required to complete this project, in the amount of $539,000, is available due to
later or lower than expected spending on other projects included in the 2010 Draft Plan of
Finance such as on Tenant Improvements  Capital. The project will be funded from the
Tax Levy.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 28, 2010 
Page 4 of 6 
Financial Analysis Summary:
CIP Category     Renewal/Enhancement 
Project Type      Renewal & Replacement 
Risk adjusted     7.5% 
Discount rate 
Key risk factors     Permitting delays could result in a delayed construction
schedule. The timing of in-water work is limited to the period
allowed by the fisheries services to limit impact on endangered
species  currently October 1 through April 15. 
Bids received are higher than the Port's estimate. 
Material costs increase significantly before purchase. 
Project cost for    $2,650,000 (100% design) 
analysis 
Business Unit (BU)  Harbor Services Group, Fishing and Commercial Vessels 
Effect on business  This is a renewal and replacement project and accordingly, the
performance      project preserves Net Operating Income (NOI) rather than creates
new NOI. 
Net Operating Income generated by the waterside operations of
the Maritime Industrial Center is currently about $70,000 per year
excluding major maintenance expenses. 
As a result of this project, annual depreciation expense will
increase by $53,000, resulting in a corresponding reduction in Net
Operating Income After Depreciation. 
IRR/NPV       Financial Analysis, based on preserving Net Operating Income
(proxy for cash flow): 
NPV    IRR  Payback
(in $000's)          (in years)
($898)      4.4%     25

ECONOMIC IMPACTS AND BUSINESS PLAN OBJECTIVES: 
This project is aligned with the business plan objectives to maintain safe facilities and
assets and provide customers with compelling value. It is a renewal and replacement
project to rebuild the infrastructure (seawall) which is needed to continue to provide
moorage & loading/unloading capacity to commercial fishing vessels, commercial
workboats and vessel repair businesses at the MIC.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 28, 2010 
Page 5 of 6 
STRATEGIC OBJECTIVES: 
This work, if authorized, is aligned with the Industrial Moorage Initiative as it is intended
to preserve and expand berth facilities to provide for a vibrant seaport that adequately
serves the requirements of all essential sectors of the maritime community. 
ENVIRONMENTAL SUSTAINABILITY AND COMMUNITY BENEFITS: 
The project includes numerous features which will improve environmental conditions at
the MIC, including: 
The project has been designed to avoid excessive air emissions and impacts on the
waste stream. The existing seawall and unstable fill/pavement will be addressed
and/or remediated in location rather than removed as landfill waste. 
The new seawall will be constructed primarily of steel and concrete components to
take advantage of greater life cycle benefits. 
The removal of the marine rail system and fill from the west edge of the property will
restore or enhance at least 2,000 square feet of aquatic and riparian habitat and
promote better fish passage through the site.
At least seventeen (17) creosote treated piles will be removed from construction area,
improving water, sediment and habitat quality beneath the central pier.
Construction best management practices, including erosion and sediment control
measures, will be employed to prevent impacts to water quality and the aquatic
environment. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1: Do nothing. Without remediation, the existing steel sheet pile seawall 
section and adjacent pavement subgrade will continue to deteriorate and the likelihood of
structural failure of both will continue to increase. Vehicle parking along the seawall will
need to continue to be prohibited, thus reducing the use and efficiency of the facility. For
these reasons, Alternative 1 is not recommended. 
Alternative 2: Repair, not replace, the existing sheet pile and adjacent pavement 
subgrade. Due to the overall age of the existing steel sheet piling and the degree of the
corrosion that it has experienced, this option is considered to be an inefficient and shortterm
, at best, solution to alleviating the risk of structural failure in the bulkhead. For this
reason, Alternative 2 is not recommended.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 28, 2010 
Page 6 of 6 
Alternative 3: Replace the existing steel sheet pile seawall in kind, and inject
compaction grouting in the pavement behind the existing adjacent pavement for
structural subgrade support. 
Reopen the pavement area along the seawall to vehicle parking and vessel
loading/unloading operations. Staff is recommending this alternative as it will
alleviate the existing structural safety concern, correct the current degrading
condition, and restore this asset to its full beneficial use. 

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
On January 13, 2009, Commission authorized $360,000 for design, permitting, and
project management for the Maritime Industrial Center Central Seawall Replacement
project.