COMMISSION 
AGENDA MEMORANDUM                        Item No.          8f 
ACTION ITEM                            Date of Meeting      January 12, 2021 
DATE:     December 3, 2020 
TO:        Stephen P. Metruck, Executive Director 
FROM:    James E. Truhan, Sr. Real Estate Manager 
Rod Jackson, Capital Project Manager 
Melinda Miller, Director, Portfolio and Asset Management 
SUBJECT:  WTCW HVAC Replacement (CIP # C800199) Construction Funding Request 
ACTION REQUESTED 
Authorization for the Executive Director to approve additional funding of $555,000 to complete
the World Trade Center West (WTCW) HVAC Replacement Project for design and construction. 
Amount of This Request                   $  555,000 
Previously Authorized                     $3,526,000 
Revised Estimated Project Cost             $4,081,000 
EXECUTIVE SUMMARY 
This project at the WTCW building will provide an energy efficient and sustainable replacement
for the building's existing 22-year-old mechanical system. 
The WTCW's existing central HVAC system - which includes a 200-ton Roof Top Unit (RTU)-was
installed in 1998. Despite diligent maintenance over its lifetime, it is operating with an increasing
risk of unplanned outages. 
In addition to replacing the WTCW's RTU, this project will also replace related HVAC system
components, including the World Trade Club's kitchen HVAC and hood exhaust system, terminal
fan units and system controls.  With this approach, the Port will capture increased energy
efficiencies, reduce Green House Gas (GHG) emissions, and minimize tenant disruptions. 
PROJECT JUSTIFICATION 
The existing 200-ton central HVAC system (installed in 1998) has reached the end of its useful
life. It is inefficient and operating at high risk of unplanned outages. 
This project supports the following Century Agenda objectives: 
1.  Position the Puget Sound region as a premier international logistics hub. 
2.  Advance this region as a leading tourism destination and business gateway. 
3.  Be the greenest, and most energy-efficient port in North America. 

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 8f                                   Page 2 of 6 
Meeting Date: January 12, 2021 
DETAILS 
Based on commission authorization received on July 14, 2020, a request for proposals was 
advertised on August 13, 2020, as a Building Engineering Systems (BES) procurement, with two
competitive proposals received on October 20, 2020, with both proposals coming in above
budget. Both proposals met minimum established requirements with both proposals exceeding 
the engineer's estimate. The engineer's estimate in the amount of $2,826,000 for a total project
cost of $3,526,000 is not enough to complete the project, therefore, additional funds of $555,000
are required to offset the cost of the project. This includes $531,000 which is required to cover 
additional construction, contingency and taxes with a soft cost increase of $24,000 to cover
safety oversight for a total cost of $555,000. 
Funding Request Detail 
Additional Forecasted Hard Costs                                 $ 531,000 
Additional Forecasted Soft Costs                                   $  24,000 
Amount of this Request                                         $ 555,000 
Cost Summary 
Port Design/ Construction Estimate (4/20/20)              Proposer A           Proposer B 
$2,826,000                                             $4,328,850           $3,388,657 
The proposal evaluation team determined that Proposer B's proposal is acceptable, based on
best value and strongest rating for HVAC System Replacement and Design/Construction Project
Approach. The Port team determined it was in our best interest to continue to pursue this
Building Engineered System delivery method and award the contract. 
Scope of Work 
The scope of work for this project includes the following key elements: 
1.  Replace primary HVAC equipment (chiller, condenser, etc.); 
2.  Replace secondary HVAC distribution components (tenant space VAV boxes); 
3.  Replace World Trade Club kitchen HVAC and hood exhaust systems; 
4.  Install a new Building Management Control System; 
5.  Test and commission all systems; and 
6.  Salvage existing components for the Port's spare parts inventory. 





Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 8f                                   Page 3 of 6 
Meeting Date: January 12, 2021 
Approach 
The project is being procured as a Building Engineering Systems Contract (RCW 39.04.290). This
approach allows the Port to award contracts by using a competitive bidding or request for
proposals process where bidders are required to provide final specifications and a bid price for
the design, fabrication, and installation of system components. System design and specifications
under this approach are reviewed and approved by the Port. 
This procurement strategy was chosen because a simplified and self-contained turn-key solution
is feasible, and equipment represents a large percentage of the project cost. 
Further, this approach furnishes opportunities for increased quality, efficiency, and risk reduction
for the Port. 
Benefits 
The project, via replacement of major HVAC system infrastructure, increases system reliability,
and efficiency, while significantly reducing  greenhouse gas emissions.  A  new Building
Management Control System will be installed, which will integrate systems throughout the
building and ensure efficient performance. Finally, the project brings the WTCW in-line with local
and state building energy code requirements and allows the Port to capture utility incentives. 
Diversity in Contracting 
Project staff along with the Diversity in Contracting Department have established a Woman and 
Minority Business Enterprise (WMBE) aspirational goal of 6% for this project, proposer "B"
committed to the 6% goal for the project. 
Schedule 
Commission Design & Construction authorization                      July 14, 2020 
Advertisement                                                    August 13, 2020 
Award                                                        January 2021 
Design start by the awarded team                                        Q1 2021 
Construction start                                                          Q3 2021 
In-use date                                                                  Q4 2021 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do not add funds to the project. 
Capital Cost: No additional funds added to the project. 
Pros: 
(1)    No capital investment by the Port. 
Cons: 
(1)    Does not advance the Century Agenda environmental goals. 
(2)    Does not reduce carbon. 
(3)    Continues natural gas use for heating. 
(4)    Does not address 24/7 operation of the kitchen HVAC system. 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 8f                                   Page 4 of 6 
Meeting Date: January 12, 2021 
(5)    Does not address replacement of end-of-life VAV boxes. 
(6)    Does not provide an opportunity for contractor innovation and input during design. 
(7)   Does not provide an opportunity for utility incentives or grants. 
(8)   A total cost of $350,000 would need to be expensed. 
This is not the recommended alternative. 
Alternative 2: - Rebid project reducing the scope while utilizing the Design Bid Build (DBB)
procurement method to replace the RTU with like-for-like system plus upgrade system controls,
replace all existing VAV boxes, replace 4th floor kitchen HVAC system with DOAS to eliminate
natural gas heating. 
Capital Cost: Minimum of $3,526,000 
Pros: 
1)    Advances the Century Agenda environmental goals. 
2)    Environmental benefit: Expected to reduce 376 Mt CO2 over 20-year lifecycle and
reduce the building's EUI by 14%. 
3)    Eliminates fossil natural gas for heating within the building to reduce GHG emissions. 
4)    Use of DOAS allows the Port to demonstrate advanced HVAC technology. 
5)    Replaces the end-of-life VAV boxes at the same time as the RTU system to minimize
tenant impact and construction costs. 
Cons: 
(1) Requires additional design and specification development in order to advertise and
award. 
(2) Longer implementation schedule than Building Engineered System (BES) approach. 
(3) VAV box replacement and control upgrades are invasive and requires phased work in all
tenant spaces. 
(4) Construction period will be several months longer. 
(5) Total capital costs will not be known until the bids are submitted. 
(6) Mitigation efforts for tenants and customers may not completely be met. 
(7) Does not provide an opportunity for contractor innovation and input during design. 
(8) Does not provide an opportunity for utility incentives or grants. 
(9) Potential for significant budget increase. 
This is not the recommended alternative. 
Alternative 3  Add requested funds of $555,000 for the Like-for-like RTU replacement with
controls retrofit, replacement of existing VAV boxes, a new Kitchen HVAC system (hood and
exhaust fans with VFDs, VRF electric heat pumps, and a small DOAS unit) including a new Building
Management System (BMS). 
Capital Cost: $4,081,000. 
Pros: 
1)  Advances the CA's environmental goals. 
2)  Projected energy savings are significant: 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 8f                                   Page 5 of 6 
Meeting Date: January 12, 2021 
a.  Reduces annual GHGs up to 35% compared to existing system; 
b.  Achieves nearly 8X the energy savings of Alternative 1; 
c.   Achieves 36X the lifetime GHG reductions of Alternative 1; 
d.  Reduces building EUI by 14%. 
3)  Eliminates fossil natural gas for heating. 
4)  Use of DOAS allows the Port to test functionality of advanced HVAC technology; 
5)  Replaces the end-of-life VAV boxes simultaneous to main building HVAC system to
minimize tenant impact and construction costs; 
6)  Includes a new (BMS) controls to support all equipment in the building. 
Cons: 
7)  Requires additional authorization of $555,000 to total $4,081,000. 
8)  VAV box replacement and control upgrades is invasive and requires phased work in all
tenant spaces. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary 
ESTIMATE HISTORY                CAPITAL        EXPENSE        TOTAL 
Original Estimate                   $3,526,000            $0           $3,526,000 
Current Request                   $555,000            $0           $555,000 
Revised Estimate                 $4,081,000           $0          $4,081,000 

AUTHORIZATION HISTORY            CAPITAL        EXPENSE        TOTAL 
Previous Authorizations               $3,526,000            $0           $3,526,000 
Current Request                   $555,000            $0           $555,000 
Total Authorizations 
$4,081,000           $0          $4,081,000 
Including This Request 
Remaining Amount To Be Authorized            $0               $0              $0 
Annual Budget Status and Source of Funds 
This project has been included in the 2021 Plan of Finance under C800199 WTCW HVAC
Replacement at an estimated total project cost of $3,526,000. The updated current total project
estimate is $4,081,000.
The additional estimated cost of $555,000 will be funded by C800216 EDD Reserve. 
This project is funded by the General Fund. 


Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 8f                                   Page 6 of 6 
Meeting Date: January 12, 2021 

Financial Analysis and Summary 
Project cost for analysis              $4,081,000 
Business Unit (BU)                  Portfolio Management 
Effect on business performance     The project will maintain annual gross revenue of $1.5
(NOI after depreciation)             million from WTCW. Depreciation will increase by
$408,100 per year, thereby reducing the NOI by the same
amount. 
IRR/NPV (if relevant)                No incremental revenue. The NPV is the present value of
the project cost. 
CPE Impact                       N/A 
SUSTAINABLE EVALUATION FRAMEWORK 
The WTCW HVAC System Replacement project was identified as a priority project for the
Sustainable Evaluation Framework.  Staff hired consultants to provide alternatives to replace
end-of-life HVAC equipment.   An internal interdisciplinary team was formed to evaluate
alternatives to balance costs, occupant comfort, overall system and building energy efficiency,
and advance the Century Agenda greenhouse gas (GHG) goals. Meetings were held in late 2018
and 2019 to complete energy audits, conduct building assessments, and identify potential
components to form the basis of the HVAC system replacement alternatives.  Port of Seattle
project staff met in January 2020 to evaluate consultant audit findings and recommendations 
and solidify goals. The identified goals include cost effectiveness, greenhouse gas emission
reduction, energy efficiency, and impacts to tenants. Project goals were used to evaluate three
design  alternatives.  A  cost-benefit  analysis  was  assembled  for  each  alternative  and
recommendations were presented to the project sponsors in February of 2020. Additional details
are provided in the WTCW HVAC Replacement Sustainable Design Approach (SDA) & Sustainable
Design Strategy (SDS) document. Findings were then presented to the Energy & Sustainability
(E&S) Committee on June 16th. The SDA & SDS document was updated based upon comments
during the meeting and organized to align with this memo. The E&S Committee confirmed the
recommended alternative (Alternative 3). The Final SDA/SDS was presented to Commission
during authorization for design and construction funding on July 14th. 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
July 14, 2020  The Commission authorized and approved Design and Construction funding
for the project. 



Template revised June 27, 2019 (Diversity in Contracting).