COMMISSION 
AGENDA MEMORANDUM                        Item No.          8e 
ACTION ITEM                            Date of Meeting      March 23, 2021 
DATE:     February 22, 2021 
TO:        Stephen P. Metruck, Executive Director 
FROM:    James Truhan, Sr. Real Estate Manager, Portfolio and Asset Management 
Rod Jackson, Capital Project Manager 
Melinda Miller, Director, Portfolio and Asset Management 
SUBJECT:  P-66 Roof Upgrades (CIP# C801103) Construction Funding Authorization Request
Amount of this request:       $1,909,000 
Previously Authorized:        $  300,000 
Total estimated project cost:   $2,209,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to (1) advertise for construction
bids, (2) execute construction contracts, and (3) fund the construction phase to complete the P66
Roof Upgrade Project, for a total estimated project cost of $2,209,000. 
EXECUTIVE SUMMARY 
This project will extend the service life of existing P66 roofing systems via repair, overlay or
replacement based on recommendations contained in a third-party assessment study completed
in January 9, 2019. 
The P66 Roof Upgrade project is a Tier 1 project under the Sustainable Evaluation Framework
Policy Directive. As part of the Notebook documentation process, the PM consulted with
environmental subject matter experts and discussed the scope of the project. Since the project
is limited to roof and gutter overlays, installation of solar arrays or rain barrels would add
additional elements that are far outside the scope of the current project. However, the design
will not preclude these elements when future replacement is warranted. The environmental and
design team has requested the exploration of design features and materials that could minimize
impacts on the environment and construction best management practices. 
The project is in the design/construction documentation phase, with construction documents at
the 100 percent stage of completion. 


Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 8e                                  Page 2 of 6 
Meeting Date: March 23, 2021 
Background 
The Pier 66 campus consists of Anthony's Restaurant, the Bell Harbor International Conference
Center and the Bell Street Cruise Terminal, all of which are included in the scope of this project.
The campus is characterized by a diversity of roofing systems and forms, which - while adding
architectural interest - increase the complexity of the system from a moisture resistance and
repair/maintenance perspective. 
The campus was completed in 1995; the existing roofing system is original & now 25 years old.
Goal 
Extend the useful life of the existing roofing system by up to 30 years. 
Objectives 
A.  Protect Existing Assets 
Ensure that its highly complex roofing system (consisting of multiple roofing types,
levels and intersections) maintains its watertight integrity.
B.  Reduce Unplanned Maintenance Costs 
Mitigate future costs related to roof leaks, including rot, mold and corrosion. 
C.  Mitigate Impacts to Existing Business Operations 
Coordinate with Cruise, Bell Harbor International Conference Center and Anthony's
around scheduled business events. 
D.  Employ Sustainable Means and Methods 
Incorporate environmentally sustainable practices during construction, where practical. 
JUSTIFICATION 
Immediate upgrades and replacement to the P66 Roofing Systems are critical to tenants and
customers while preserving the revenue of two significant business units.
This P66 Roof Upgrade project supports all four of the Port's Century Agenda objectives under
the following strategies: 
A.  Position the Puget Sound region as a premier international logistics hub. 
B.  Advance this region as a leading tourism destination and business gateway. 
C.  Use the Port's influence as an institution to promote women and minority business
enterprise (WMBE) growth, small business growth, and workforce development. 
D.  Be the greenest, and most energy-efficient port in North America. 
Further, the project supports the following additional imperatives: 


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

COMMISSION AGENDA  Action Item No. 8e                                  Page 3 of 6 
Meeting Date: March 23, 2021 
A.  Protect Existing Assets 
Ensure that its highly complex roofing system (consisting of multiple roofing types,
levels and intersections) maintains its watertight integrity.
B.  Reduce Unplanned Maintenance Costs 
Mitigate future costs related to roof leaks, including rot, mold and corrosion. 
C.  Mitigate Impacts to Existing Business Operations 
Coordinate with Cruise, BHICC and Anthony's around scheduled business events. 
D.  Employ Sustainable Means and Methods 
Incorporate environmentally sustainable practices during construction where practical. 
Diversity in Contracting 
Project staff along with the Diversity in Contracting Division have set a woman and minority
business enterprise (WMBE) aspirational goal of 5% for the construction portion of the project. 
DETAILS 
The project team will: 
Facilitate small business opportunities by managing expense and capital scope as a single
cohesive process. 
Mitigate construction-driven business risk impacts by implementing project risk
management and phasing plans. 
Complete the project safely on schedule and on budget. 
Track both the expense and capital portions of this work and distribute the costs to each
designated subclass.
Scope of Work 
A.  Overlay or replace existing roof membranes and surfaces. 
B.  Renew or replace penetrations and appurtenances. 
C.  Reseal roof intersections and transitions. 
D.  Add precast pavers to Anthony's external decks. 
E.  Bird deterrent and various fall protection upgrades to all buildings. 
Schedule 
Commission Design Authorization               December 15, 2020 
Commission Construction Authorization         March 23, 2021 
Construction Start                                2021 Quarter 3 
In-Use Date                                     2022 Quarter 1 



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

COMMISSION AGENDA  Action Item No. 8e                                  Page 4 of 6 
Meeting Date: March 23, 2021 
Cost Breakdown 
This Request               Total Project 
Design                                  $0                  $300,000 
Construction                    $1,909,000                $1,909,000 
Total                              $1,909,000                 $2,209,000* 
* The current P66 Roof Upgrade total estimated project cost of $1,743,000 under CIP #801103 is
shown in the 2021 Plan of Finance. The updated current total project estimate is $2,209,000.
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Cancel Project 
Maintain the current state.
Cost Implications:  $16K annually in ongoing maintenance costs. 
Pros:  Defers capital spending at a challenging time for Port budgets. 
Cons: 
(1)    Repairs and maintenance will still be needed  performed as separate projects at
incrementally increased cost (due to inefficient, multi-project approach). 
(2)    Future roof replacement will become imperative, as risks of failure increase, at an
estimated current cost of $1.74 million. 
(3)    Increasing risk of facility damage due to water infiltration. 
(4)    Increasing risk of business interruptions to BHICC, Cruise and Anthony's restaurant due
to water infiltration. 
(5)    $300,000 sunk costs. 
(6)    Century Agenda environmental goals would be not be advanced with this project. 
Alternative 2  Split Projects (Expense and Capital) 
Replace the proposed project with a series of Expense and Capital projects, executed over time. 
Cost Implications: $869K (Expense); $1.34M (Capital) 
Pros: 
(1)   Allows tailored approach to Expense and Capital spending at a challenging time for Port
budgets. 
(2)   Targets the most critical roofing risks with projects tailored to the specific issues. 
(3)   Opportunity to allow Port forces to perform some portions of the work. 
(4)   Incrementally advances Century Agenda goals, over and extended time period. 
Cons: 
(1)   May not conform with procurement restrictions against project incrementation. 
(2)    Extended  completion  timeline  needed  in  order  to  accommodate  funding  and
manpower availability. 
(3)    Extended operational impacts due to an ongoing series of smaller roof projects. 

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

COMMISSION AGENDA  Action Item No. 8e                                  Page 5 of 6 
Meeting Date: March 23, 2021 
(4)    Series  of  smaller  projects  may  not  attract  sufficient  interest  from  commercial
contractors. 
(5)    Inefficient procurement approach will drive higher costs (general conditions, multiple
mobilizations, etc.). 
This is not the recommended alternative. 
Alternative 3  Upgrade and replace both expense and capital roof elements to the entire
existing roofing system with various roof applications that have a 30-year life. 
Cost Implications: $2.20M 
Pros: 
(1)   Advances the Century Agenda goals. 
(2)    Optimizes funding requirements. 
(3)    Upgrade and replace both expense and capital project elements on the existing roofing
system with various roof applications that have a 30-year life. 
(4)    Efficiencies are achieved by combining both expense and capital elements for the
construction documents. 
(5)    This system that will protect Port assets and have a 30-year life span and will serve the
Port and the tenants well. 
(6)    Helps to assure a stronger positive tenant experience and avoids potential safety
hazards. 
(7)    Provides protection of Port assets. 
(8)    This project would provide for a warranted roof that will minimize the cost of repairs
going forward for the foreseeable life of the roof. 
Cons: 
(1)    This alternative uses $2.20M of capital funds that might otherwise be made available
for other uses on other projects. 
(2)    Construction period is well within the cruise season which will restrict construction
progress and activities. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
ESTIMATE HISTORY 
Original estimate                                   $610,050      $1,132,950      $1,743,000 
Current estimate                                $1,347,490       $861,510      $2,209,000 
AUTHORIZATION 
Previous authorizations                            $104,999        $195,001        $300,000 

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

COMMISSION AGENDA  Action Item No. 8e                                  Page 6 of 6 
Meeting Date: March 23, 2021 
Current request for authorization                $1,242,491        $666,509      $1,909,000 
Remaining amount to be authorized                    $0             $0             $0 
Annual Budget Status and Source of Funds 
The project was included in the 2021 Plan of Finance under CIP C801103 P66 Roof Upgrades with
a total project cost of $1,743,000. The additional estimated cost of $466,000 will be funded by
Portfolio Management's operating budget and C800216 EDD Reserve. 
This project is funded by the General Fund. 
Financial Analysis and Summary 
Project cost for analysis              $2,209,000 
Business Unit (BU)                  Portfolio Management 
Effect on business performance     This project is expected to increase an annual 
(NOI after depreciation)             depreciation expense by approximately $147K based on a
15-year useful life. 
IRR/NPV (if relevant)                No incremental revenue. The NPV is the present value of
the project cost. 
CPE Impact                       N/A 
Future Revenues and Expenses (Total cost of ownership) 
This upgrade will provide protection of Port assets and extend their useful life.  Maintaining
existing assets will preserve the economic vitality of our operations and serve the Port, tenants,
and customers well.  This project will support the economic vitality of the operations and
contribute to the preservation of annual income while minimizing the risk of disruption to the
operations.
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
December 15, 2020 - Commission approved $300,000 for the design and permitting phase of the
P-66 Roof Upgrades Replacement project (CIP# C801103) for a total
authorization of $300,000. 




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