PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA                   Item No.         6c 
Date of Meeting       May 11, 2010 

DATE:      April 15, 2010 
TO:       Tay Yoshitani, Chief Executive Officer 
FROM:     Melinda Miller, Director, Portfolio Management 
Kate Deaver, Capital Project Manager 
SUBJECT: Fishermen's Terminal C15 HVAC Improvements 
CIP: C800137 
Amount of This Request: $807,021              Source of Funds: Tax Levy 
Estimated Total Cost Of The Project: $4,000,000 
ACTION REQUESTED:
Request authorization for the Chief Executive Officer to execute and award an outside
professional services agreement for design services and to proceed with engineering and
design analysis, preparation of construction documents (plans and specifications) permit
acquisition, and project management for the replacement of the existing HVAC system
on the C-15 Building at Fishermen's Terminal in the amount of $807,021. The
preliminary estimated cost of the project, prior to design work and completion of the
engineer's estimate, is $3,967,000. 
SYNOPSIS:
This authorization is for the design phase of the project. Staff will return to Commission
following completion of design to seek authorization for bid and award of the
construction portion of the project. This project replaces the existing heating, ventilating,
and cooling system (HVAC) and the digital controls systems. 
The existing HVAC is original to the C-15 building which was built in 1987. The normal
useful life for an HVAC system is approximately fifteen years. This system has been
able to function well for twenty two years due to proper maintenance and repairs, but it is
well past its useful life. The digital control systems were upgraded in 2005/2006 but,
with the rapid advancements in energy efficient controls technology and the installation
of energy efficient HVAC units, it was deemed necessary to replace the controls.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 15, 2010 
Page 2 of 7 
The preliminary budget for this project is $4,000,000. The project was included in the
2010 Plan of Finance as a committed project under CIP #C800137 with the bulk of the
dollars to be spent in 2011. The C -15 building is 95% occupied and generates annual
revenues of $1,172,537. Net Operating Income for C-15 is approximately $860,000,
excluding major maintenance expenses and tenant improvements.
BACKGROUND: 
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.
Restaurants, retail shops, full-service banking, fresh seafood market and the Seattle
Fishermen's Memorial offer a front-row seat to the historic fishing industry. 
Building C-15 at Fishermen's Terminal was constructed in 1987. Building occupants
include the Port of Seattle operations staff and 18 mixed-use tenants, including leased
offices, various retail businesses, one tavern, and three restaurants.
The HVAC system for the C-15 Building currently consists of 19 "rooftop" units ranging
in size from 2.5 tons to 25 tons. When the building was constructed in 1987, the units
were installed on two mezzanine levels, (one for the west side of the building and one for
the east side of the building) that were integrated into an open truss roof structure;
basically the floor of the mezzanine and the roof for the building are tied together
structurally. 
The selected engineer will be tasked with creating design options that will be analyzed to
determine the most cost effective solution with attention to energy efficiency and
sustainability. We anticipate that the design will be challenging as the engineers will
need to determine how to install very large units (up to 7'x7'x4') into spaces with limited
(42") access. The roof/mezzanine structural issues will also be addressed and a solution
determined so that the units can easily be replaced as needed in the future. We hope to
find creative and cost effective methods for construction that will reduce the costs but
won't know until we start the design. The costs are estimated higher than typical HVAC
projects because of the roof/mezzanine structural issues. 
PROJECT JUSTIFICATION:
This project will install a new energy efficient HVAC System at the C-15 Building at
Fishermen's Terminal to replace an aging system that has outlived its useful life. It must
be replaced as required by the Port's lease with the tenants, whose use of the building is
compromised if the HVAC System fails.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 15, 2010 
Page 3 of 7 
PROJECT STATEMENT AND OBJECTIVES: 
Project Statement: 
This project will replace the existing HVAC and Mechanical Controls System with new
energy efficient equipment and a fully integrated mechanical controls system.
Project Objectives: 
Replace the existing system with an energy efficient system. 
Replace the two existing HVAC Controls Systems (east building and west building)
with one linked web based system. 
Minimize construction impacts to the existing tenants, including scheduling to meet
least weather related impacts. 
Replace the existing HVAC system with the most cost effective solution taking into
account full life cycle costs (initial cost of equipment, maintenance, longevity, etc.). 
Create a design for this replacement that allows for easy access for system
replacement in the future. 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
The FT C-15 HVAC Improvements project includes: 
Design and construction of new energy efficient HVAC System to replace the
existing system and make it easily accessible for future replacements. 
Design and installation of new integrated HVAC Digital Control system to replace
the two systems currently in use. 
Full Commissioning of system to ensure functionality and to maximize energy
efficiency. 
This requested action authorizes execution and award of an outside professional services
agreement for design services, including engineering and design analysis; preparation of
construction documents (plans and specifications); permit acquisition; and project
management activities. 
Schedule: 
Procurement for the engineer/designer will start in May 2010 with the actual design
starting in late summer/early fall 2010. Construction is scheduled, due to the long
lead time on the equipment and the weather, for spring of 2012 with an expected
duration of less than three months.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 15, 2010 
Page 4 of 7 

Tentative Schedule: 
Start                    Finish 
Pre Design                          May 2010                 Sept 2010 
Design                               October/ November 2010   April/May 2011 
Permits                                September 2010            April 2011 
Major Works Construction Bid       May 2011                 July 2011 
Construction NTP (Notice to          September 2011 
Proceed) 
Contractor Long Lead Items           October 2011              February 2012 
Construction                          April 2012                 June 2012 
Budget/Authorization Summary 
Previous Authorizations (prior RE Managing Director authorization)                   $50,000 
Current request for authorization                                               $807,000 
Total Authorizations, including this request                                    $857,000 
Remaining budget to be authorized                                       $3,110,000 
Total Estimated Project Cost                                              $3,967,000 
Project Cost Breakdown 
Construction                                                               $2,860,000 
Construction Management                                              $172,000 
Design                                                                    $343,000 
Project Management                                                    $286,000
Permitting                                                                    $36,000 
State & Local Taxes (estimated)                                             $270,000 
Total                                                                         $3,967,000 
Source of Funds 
The Fishermen's Terminal C15 HVAC Improvement project was included in the 2010
Plan of Finance as a committed project in the amount of $4,000,000 under CIP C800137.
The project will be funded from the Tax Levy.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 15, 2010 
Page 5 of 7 
Financial Analysis Summary:
CIP Category                Renewal/Enhancement 
Project Type                  Renewal and Replacement 
Risk adjusted Discount rate 
Key risk factors                1)   Construction impacts on tenants, permitting and weather
could negatively impact the timing of the project. 
2)  Construction costs are preliminary and could increase if
required work is more extensive than currently known. The
construction cost estimate will be refined during the design
process. 
3)  The estimated Net Operating Income is based on contractual
rents and an assumed 10% vacancy rate. Net Operating
Income could be lower, if the vacancy rate exceeds 10%.
The current tenant mix is a collection of relatively small
tenants with a significant exposure to retail. 
Project cost for analysis        $3,967,000 
Business Unit (BU)            Portfolio Management  Fishermen's Terminal Uplands 
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. 
NOI generated by the C-15 building is approximately $860,000 
per year excluding major maintenance expenses and tenant
improvements. 
As a result of this project, depreciation expense will increase
when the assets are put in service. The incremental impact to
NOI and NOI After Depreciation is noted below. 
NOI (in $000's)         2010    2011    2012    2013    2014
NOI                $0     $0     $0     $0     $0
Depreciation            $0      $0     ($188)  ($376)  ($376)
NOI After Depreciation   $0      $0     ($188)  ($376)  ($376)
IRR/NPV                 Preliminary financia l analysis  based on estimated construction
costs and preserv ation of existing NOI, as stated above (proxy
for cashflow):
NPV     IRR   Payback
(in $000's)              (in years)
$3,582       NA       7

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 15, 2010 
Page 6 of 7 
ECONOMIC IMPACTS AND BUSINESS PLAN OBJECTIVES: 
Proceeding with this project now, rather than later, allows the Port to replace a valuable
asset in a planned and cost effective approach before it fails and minimizes the risk of
negatively impacting our customer's and the Port's financial bottom line.
STRATEGIC OBJECTIVES: 
This project supports the Port's strategies to "Ensure Airport and Seaport Vitality and to
"Exhibit Environmental Stewardship through our Actions" by: 
Investing in, and renewal of a valuable Port asset 
Maintaining the long-term revenue generating capability of the Fishermen's Terminal
C-15 Building. 
Fulfilling our lease commitments and obligations to our multiple tenants at the C-15
Building 
Reducing the Port's energy consumption by replacing old, outdated equipment with
energy efficient equipment and controls. 
ENVIRONMENTAL SUSTAINABILITY AND COMMUNITY BENEFITS: 
This project will replace old inefficient equipment with new energy efficient equipment.
The design scope of work will include providing options for replacing the equipment and
life cycle cost analysis will be done as part of the option selection. As the design
progresses, additional sustainability and community benefits will be pursued. 
TRIPLE BOTTOM LINE: 
This project maintains a valuable Port asset, allows Real Estate Portfolio Management to
retain revenue from C-15 Building asset while reducing the cost of heating and cooling,
and reduces the Port's overall energy use at Fisherman's Terminal. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative #1. Do nothing. As the existing system is well beyond its useful life,
additional maintenance costs occur and the risk of system failure increases. The existing
HVAC units are old and parts are becoming progressively more, if not impossible, to
obtain. Given the structural issues associated with replacement, rapidly replacing the
system in the event of failure becomes very challenging, the costs increase, the Port risks
not being able to meet their lease obligations, and the tenants are uncomfortable. This
alternative is not recommended.
Alternative #2. Replace just the HVAC System and not the Digital Control System. This
option would not allow for the maximum energy savings that replacing both the HVAC
and Control System would allow. In addition, the existing Control Systems that are in

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 15, 2010 
Page 7 of 7 
place now may not be compatible with the new HVAC equipment. L ess energy efficient
or more costly new equipment may need to be specified in order to make the new HVAC
and controls compatible. This alternative is not recommended. 
Alternative #3. Replace the existing HVAC and Digital Control System with a new
energy efficient system. This option assures that the controls and HVAC equipment
will be compatible and will perform as required to keep our tenants and customers
comfortable. This is the recommended option. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST 
November 3, 2009-Commission briefing on the C-15 building HVAC Project. 

PREVIOUS COMMISSION ACTIONS 
The Commission was briefed on this project on November 30, 2009.