PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA            Item No.     6c
ACTION ITEM            Date of Meeting   May 4, 2010
DATE:   April 16, 2010 
TO:     Tay Yoshitani, Chief Executive Officer
FROM:   Rees Robinson, Project Manager, Marine Maintenance
Lindsay Pulsifer, General Manager, Marine Maintenance
SUBJECT: Maintenance Shop Solution
CIP C800187
Amount of This Request: $2,250,000 Source of Funds: Tax Levy 
State and Local Taxes Paid: $120,000  Est. Workers Employed: 12
Total Project Budget: $ 2,300,000

ACTION REQUESTED: Request Port Commission authorization for the Chief
Executive Officer to proceed with authorization of Maintenance Shop Solution projects,
including: engineering analyses and design, project management, preparation of
construction documents, advertisement for bids and execution of construction contract,
purchase of materials and Shop self-performance of work under Maintenance Shop
Solution Projects (CIP C800187) for a total cost, not to exceed, $2,300,000. ($50,000
was previously authorized under CIP C800243)
This authorization is combining two steps of the Resolution 3605 process (authorization
for design and authorization for advertising, awarding and performing construction) into
one request due to the nature of the projects. They are largely independent of each other.
Design is minimal: the roof work is described by specifications and most other parts will
be constructed by Port crews. Construction will not take place at once but must be
phased to allow continuity of Marine Maintenance operations.

SYNOPSIS: The Port of Seattle had been considering relocating the Marine
Maintenance Shop to a more central location, in relation to POS Marine Facilities, since
2000. Pursuant to a cost/benefit analysis of the relocation, the decision was made to keep
the Shop operating at its current location.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer
April 16, 2010
Page 2 of 7

The Maintenance Shop Solution is budgeted in the capital plan and includes the
following projects, which make staying in its current location viable:
Roof Replacement
Office Space Expansion
Kitchen / Break Room Relocation
Power & Computer Network Upgrades
North-end Office
Roof Replacement work will be accomplished using a Major Construction contract.
Authorization is requested to complete the rest of the work using Marine Maintenance
crews and Small Works Contracts. This allows adjustment of work flow, construction
schedules and phasing in order to maintain maintenance operations during construction.
ADDITIONAL BACKGROUND: 
Roof Replacement: A roof condition report, dated June 7, 2007, recommended reroofing
the maintenance shop within one year of the report. The report further
recommended removing the existing roof system down to the wood substrate to inspect
for possible damage. This report was substantiated by NW Professional Roofing
Associates this year.
Office Space Expansion: Office space in the Shop is filled to capacity. Marine
Maintenance is adding staff to handle its current and projected workload, making the
need for increased space urgent. The office space expansion will include a minimum of
eight additional office spaces and a conference room. The expansion will be within the
existing Shop building footprint.
Kitchen / Break Room Relocation: The Shop Kitchen / Break Room gets continual daily
use and is used for food preparation and clean up during Marine Maintenance events. The
break room is outdated with old, inefficient appliances and deteriorated finishes. A
remodel is past due. The current location of the kitchen / break room is adjacent to the
Shop front lobby and has windows. To make optimum use of the shop footprint and
layout, and to be cost-effective in the project process, the kitchen will be relocated to an
area on the shop floor and its existing location will be used for the Office Space
Expansion.
Power & Computer Network Upgrades: Shop electrical service does not meet current
code. Nor does it have the capacity to meet future needs. There are not sufficient network
connections available for the computers that will be added with the office expansion.
North-end Office: Construction of a north-end remote office will improve maintenance
crew response times, cut down on travel times, and provide a specific site that complies
with labor agreements, to which crafts people can report. The remote office will be at a

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer
April 16, 2010
Page 3 of 7
location closer to north end property work sites than the Maintenance Shop is. Having a
remote office will be particularly important when the Alaskan Way Viaduct construction
begins.
PROJECT JUSTIFICATION: The Port of Seattle and its tenants rely on Marine
Maintenance to be responsive and operationally efficient. Completion of Maintenance
Shop Solution projects are necessary to insure continued high performance from Marine
Maintenance crews and staff.
PROJECT STATEMENT AND OBJECTIVES: 
Project Statement:
Complete design and construction of five projects, identified as necessary improvements
to the Marine Maintenance Shop for continued operations in its current location, by the
end of 2010.
Project Objectives:
Increase the operational capacity of the Marine Maintenance Shop
Preserve the Marine Maintenance Shop building asset
Improve efficiency of existing space
Complete construction with minimal impact to maintenance operations
Reduce maintenance crew travel times
Increase remodeled area energy efficiency
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work:
Roof Replacement: The existing roof system will be removed down to the roof
substrate. The substrate will be inspected and damage, if found, will be repaired. A new
roof system will be constructed.
Office Space Expansion: A minimum of eight new office spaces, made up of a
combination of cubicles and closed offices, and a conference room will be constructed
within the existing Shop building footprint. The existing second floor office layout will
be reconfigured; the existing kitchen / break room will be converted to office space; and,
office space will be built in the Stores area. Construction of the office space expansion
will be phased and coordinated with the kitchen / break room relocation to allow
movement of staff without disrupting maintenance operations.
Kitchen / Break Room Relocation: A new Kitchen / Break Room will be built on the
Shop floor. It will be built in a space that is predominately used for storage and that has
close proximity to existing plumbing and electrical systems.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer
April 16, 2010
Page 4 of 7
Power & Computer Network Upgrades: A Licensed Electrical Engineer will evaluate
the existing electrical service at the Shop and determine demand. Electrical Service will
be upgraded based on the recommendations of the Engineer. Required network upgrades
will be determined by Port of Seattle ICT.
North-end Office: The North-end office will be located central to north-end Port of
Seattle Seaport and Real Estate properties. Cost effectiveness is a primary consideration.
Two options are being considered:
1.  Updating of an existing POS facility
2.  Use of a modular structure
Schedule: It is essential that Marine Maintenance remain operational during construction
of Maintenance Shop Solution projects. The schedule assumes Marine Maintenance
crews will perform much of the work. Self-performing the work allows adjustment of
work flow, construction schedules, and phasing, as required to avoid disruption of
operations without adding cost or time to the projects.
The schedule shown is approximate. It is based on the following assumptions:
All work, other than the Roof Replacement, will be predominately self-performed by
Marine Maintenance crews.
Roof Replacement will begin as soon after Commission Authorization as possible.
Project work will be phased to maintain functionality of maintenance operations at all
times.
Work required for the Power & Computer Network Upgrades and for the North-end
Office projects will be of equal or lesser magnitude than what can be accomplished
within the parameters shown.
Start               Finish 
Pre Design                 February 2010        April 2010
Commission Authorization        May 2010
Roof Replacement
Advertise for Bid        May 2010
Award Contract        June 2010
Construction           July 2010           September 2010
Office Space Expansion          June 2010           September 2010
Kitchen / Break Room Relocation    July 2010           August 2010
Power & Computer Upgrades
Design             June 2010
Construction           July 2010           August 2010
North-end Office
Design             June 2010          September 2010
Construction          September 2010       December 2010

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer
April 16, 2010
Page 5 of 7

FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary 
Original Budget                                                  $0
Previous Authorizations (prior RE Managing Director authorization under CIP C800243)       $50,000
Current request for authorization                                      $2,250,000
Total Authorizations, including this request                               $2,300,000
Remaining budget to be authorized                                       $0
Total Estimated Project Cost                                       $2,300,000
Project Cost Breakdown
Construction Cost Total                                         $1,810,000
Shop Roof                               $750,000
Kitchen / Break Room                          $190,000
Office Space Expansion                         $270,000
Electrical / Network Upgrade**                     $300,000
North-end Office**                            $300,000
Construction Management (5%)                                   $90,000
Design (Total Design Fees  All Projects)                                 $75,000
Regulated Materials Assessment / Mitigation                              $25,000
Project Management                                        $160,000
Permitting                                                   $20,000
State & Local Taxes (estimated)                                     $120,000
Total                                                     $2,300,000
** Construction Costs for the Electrical/Network Upgrade and North-end Office are to be
determined. If construction costs exceed $300,000 for either project, staff will return to
Commission for authorization before proceeding.
Source of Funds 
This renewal/replacement project was included in the 2010 Draft Plan of Finance under
Committed CIP# C800187 Maintenance Shop Solution in the amount of $2,300,000.
It is appropriate that project costs be charged against the capital budget as they are
replacement of, or additions to, Port assets and provide benefits to the Port over several
accounting periods.
The project will be funded from the Tax Levy.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer
April 16, 2010
Page 6 of 7

Financial Analysis Summary:
CIP Category  Renewal/Replacement
Project Type   Renewal/Replacement
Risk adjusted  7.0%
Discount rate
Key risk       Construction costs may increase if required work is more extensive than
factors       currently known. Current estimates will be refined based on an assessment of
the electrical system, roof substrate inspection, and determination of north end
shop location.
Project schedule could be delayed due to project complexity, weather, or
need to minimize disruptions to maintenance staff.
Project cost for  $2,300,000
analysis
Business Unit   Maintenance, Real Estate Division
(BU)
Effect on      This project will not generate any incremental revenue. However, as a capital
business      project, depreciation expense will increase based on the scope of work.
performance
The impact to Net Operating Income before and after Depreciation in Year 1
through year 5 is shown below. The depreciation schedule will be refined
when components of the capital projects are completed.
NOI (in $000's)        2010     2011     2012     2013     2014
NOI   $0 $0 $0 $0 $0
Depreciation          ($35)    ($166)    ($166)    ($166)    ($166)
NOI After Depreciation   ($35)     ($166)    ($166)    ($166)    ($166)
IRR/NPV
NPV
(in $000's)
($2,300)

ECONOMIC IMPACTS AND BUSINESS PLAN OBJECTIVES: 
Proceeding with these projects allows Marine Maintenance to continue operations to
maintain Seaport and Real Estate properties and to respond to emergencies.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer
April 16, 2010
Page 7 of 7

STRATEGIC OBJECTIVES: 
The proposed projects support the Port's strategies to "Be a High-Performance
Organization" and to "Ensure Airport and Seaport Vitality." Marine Maintenance is
currently operating out of a facility that requires improvements to preserve the building
asset and to increase the operational capacity and efficiency of a high performing group.
Marine Maintenance supports Seaport Vitality by maintaining Seaport and Real Estate
properties.
ENVIRONMENTAL SUSTAINABILITY AND COMMUNITY BENEFITS: 
Each project will be designed and constructed considering the environmental impacts
of the construction and of the asset..
The projects will use materials having demonstrated long lives and durability.
Environmentally preferable products will be purchased whenever practical.
All equipment and appliances purchased will be energy efficient.
Creation of a North-end office will reduce travel times of Marine Maintenance crews.
Increase of Maintenance Shop Offie Space will be within the existing building
footprint. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1: Authorize $2,300,000 to complete the proposed projects as described in
this memorandum: Roof Replacement; Office Space Expansion; Kitchen / Break Room
Relocation; Power & Computer Network Upgrades; and creation of a North-end Office.
These projects insure that Marine Maintenance remains operational and increases its
capacity and functionality. This is the recommended alternative.
Alternative 2: Build a new Marine Maintenance Shop on the former tank farm site at
Terminal 91. Alternative 2 was studied and in April 2009, the estimated cost of
construction of the new Shop was $29 Million. The cost assumed the auto shop would
stay at its current Horton Street location and that all tank farm environmental remediation
work at the site would be complete prior to Shop construction. Alternative 2 is not
recommended.
Alternative 3: Do Nothing. Doing nothing to preserve and / or improve the Maintenance
Shop facility would limit Marine Maintenance performance and put maintenance
operations and functionality at risk. Alternative 3 is not recommended.

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: None