PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA  ACTION ITEM      Item No.    9a
Date of Meeting  January 13, 2009
DATE:   December 12, 2008
TO:     Tay Yoshitani, Chief Executive Officer
FROM:   Darlene Robertson, Director, Harbor Services, Real Estate Division
Tim Leonard, Capital Project Manager, Capital Development Division
SUBJECT: Authorization for permitting, design, and project management of replacement of
steel sheet pile bulkhead between the West and Central Piers at the Maritime
Industrial Center
ACTION REQUESTED 
Authorization for permitting, design, and project management to be performed for the
replacement of the existing steel sheet pile bulkhead between the West and Central Piers at the
Maritime Industrial Center (MIC) in the amount of $360,000.
SYNOPSIS 
The Real Estate Division requests approval for permitting and design funding in the amount of
$360,000 for the replacement of the existing steel sheet pile bulkhead between the West and
Central Piers at the Maritime Industrial Center. The existing bulkhead section has exceeded its
service life and is at risk of structural failure. The requested design and permitting costs will be
paid out of the $1,500,000 budgeted in the 2009 Draft Plan of Finance for this project under CIP
C800175. The total cost of the project has currently been estimated to be a maximum of
$2,315,000 and is dependent on potential construction requirements to be determined in
conjunction with the permitting and design. Commission authorization for construction funding
will be sought upon completion of the engineering design and final construction estimate.
BACKGROUND 
Since purchasing the Maritime Industrial Center (MIC) 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 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 bulkhead - installed in the 1930s and consisting of approximately 280 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

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer
December 12, 2008
Page 2 of 5
material under limited portions of the pavement immediately behind the bulkhead. 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 bulkhead 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 bulkhead. In
addition 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 bulkhead section is in poor overall condition due to
significant corrosion, and consequently, is in need of replacement.
PROJECT DESCRIPTION AND JUSTIFICATION 
Project Description:
Replacement of approximately 280 lineal feet of steel sheet pile comprising the bulkhead
between the West and Central Piers at the MIC. Removal and replacement of adjacent concrete
pavement as needed to correct loss of subgrade fill material.
Project Justification:
This is a safety issue. The improvement is needed as the existing sheet pile bulkhead 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 along this section of the bulkhead is currently closed off
pending resolution of the structural failure risk.
PROJECT SCOPE OF WORK AND SCHEDULE 
Project Scope:
The project scope will include the installation of new steel sheet piling and concrete pavement
along with the excavation, removal, and replacement of fill material as necessary. Other
improvements may include replacement of bullrails, cleats, and utilities as needed in the area of
excavation.
Project Schedule:
Design and permitting to be completed by fall 2009. In-water construction to be completed by
April 15, 2010 - the end of the freshwater fish window. All construction is anticipated to be
completed by summer 2010.


STRATEGIC OBJECTIVES

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer
December 12, 2008
Page 3 of 5
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.
Best management practices will be deployed in selection of materials, work practices and
ongoing total cost of ownership.
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.
FINANCIAL ANALYSIS
Previous Authorizations (Planning CIP)                         $50,000
Current request for authorization                               $360,000
Total Authorizations, including this request                       $410,000
Remaining estimated budget to be authorized                    $1,905,000
Estimated Project Cost Breakdown
Permitting, Design, and Project Management                     $410,000
Construction                                       $1,905,000
Total Estimated Project Cost                               $2,315,000
Source of Funds:
The MIC Seawall Replacement project was included in the 2009 Draft Plan of Finance as a
committed project in the amount of $1,500,000 under CIP C800175. This budget amount was
based on the construction estimate prepared by Port Engineering as part of the asset condition
study completed for the MIC in 2007. A more detailed construction estimate recently completed
by Port Engineering has identified potential additional scope elements - including the
replacement of an additional bulkhead section under the Central Pier, the removal and
replacement of additional pavement adjacent to the bulkhead, and the excavation and disposal of
contaminated soils. The additional funding estimated to be potentially required in the amount of
$815,000 will be made available through the delay or deferral of other projects included in the
2009 Draft Plan of Finance. The project will be funded from the tax levy. The estimated total
project cost may be revised once the project design has been completed.

Financial Analysis Summary

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer
December 12, 2008
Page 4 of 5
CIP Category        Renewal/Enhancement
Project Type         Renewal and Replacement
Risk adjusted Discount   7.50%
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 to endangered species - currently
October 1 through April 15.
Construction costs may increase if required work is more extensive
than currently known.
Project cost for analysis   $2,315,000 (preliminary estimate)
Business Unit (BU)     Harbor Services Group, Fishing and Commercial Vessels
Effect on business      This is a renewal and replacement project and, accordingly, this
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, depreciation expense will increase
annually by $49,400 resulting in a corresponding reduction in Net
Operating Income After Depreciation.
IRR/NPV         Preliminary financial analysis - based on preserving Net Operating
Income (proxy for cashflow):
NPV    IRR  Payback
(in $000's)          (in years)
($962)      4.3%     24
SUSTAINABILITY AND LIFE CYCLE COSTS: 
This request is for authorization to design and permit, in preparation for authorization(s) to
advertise for construction bids and subsequently award for construction. As such, total costs and
life-cycle costs will be determined upon completion of the final improvement design.
Sustainability issues will also be considered further as part of the design process. The existing
bulkhead section to be replaced is at the end of its service life.


ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS:

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer
December 12, 2008
Page 5 of 5
Alternative 1: Do nothing. Without remediation, the existing steel sheet pile bulkhead 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
bulkhead 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.
Alternative 3: Replace the existing steel sheet pile bulkhead and affected adjacent pavement in
kind. Reopen the pavement area along the bulkhead 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: 
None