COMMISSION 
AGENDA MEMORANDUM                        Item No.          8d 
ACTION ITEM                            Date of Meeting       June 22, 2021 

DATE :     June 7, 2021 
TO:        Stephen P. Metruck, Executive Director 
FROM:    James Truhan, MCR, Sr. Real Estate Manager 
Rod Jackson, Capital Project Manager 
Melinda Miller, Director, Portfolio and Asset Management 
SUBJECT:  P-66 Roof Upgrades (CIP# C801103) Additional Funding Authorization Request
Amount of this request:                 $600,000 
Previously Authorized:                $2,209,000 
Total estimated project cost:          $2,809,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to direct staff to award and execute
Major Construction Public Works contract for MC-0320533 Pier 66  Anthony's, Bell Harbor
International Conference Center & Cruise Terminal Roof Upgrade with Best Contracting Services,
Inc. for $1,895,000 with a WMBE commitment of 5%.   Authorization will increase the total
authorized budget from $2,209,000 to $2,809,000. (CIP# C801103) 
EXECUTIVE SUMMARY 
The Pier 66 campus consists of Anthony's Restaurant, the Bell Harbor International Conference
Center and the Bell Street Cruise Terminal. The campus roofing system is highly complex , 
consisting of 12 separate roof surfaces and 4 different roofing systems. Dating to 1995, it is now
twenty-five years old and requires comprehensive maintenance and repair to extend its service
life. 
Based on Commission authorization received on March 23, 2021, bids were received on
May 15, 2021. Only two bids were received, the low bid was 26% higher than the Port
Engineering Estimate of $1,501,000. The high bid was 93% higher than the Port Engineering
Estimate.
The cost delta is driven primarily by limited bid competition, escalating material costs and
pandemic-driven labor inefficiencies. 

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 8d                                  Page 2 of 6 
Meeting Date: June 22, 2021 
Energy & Sustainability Measures 
This project is designated "Tier 1" under the Sustainable Evaluation Framework Policy Directive. 
Tier 1 projects are less complex projects that are otherwise required to follow established Port
sustainability standards and specifications. As such, there is no rationale for linking this project 
to a large-scale sustainability upgrade (such as the installation of solar panels or implementation
of a campus-level rain-water capture system). 
Completion of this project does not preclude the implementation of sustainability upgrades later,
for example, as part of a large-scale roof replacement project. 
Currently planned P66 Energy & Sustainability measures include: 
A.  Smart Metering (estimated execution in FY 2025). 
B.  Anthony's  HVAC  Upgrades:  (FY  2022). Includes    installation  of  more  efficient 
infrastructure and controls. 
C.  Pier 66 Shore Power: Ongoing capital project utilizing grant funding. 
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: 
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 Cruse, BHICC and Anthony's around scheduled business events. 

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

COMMISSION AGENDA  Action Item No. 8d                                  Page 3 of 6 
Meeting Date: June 22, 2021 
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. 
The low bid contractor met the 5% goal for the project. 
DETAILS 
Project Approach 
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 
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 
Activity 
Commission Authorization for Construction      April 2021 
Commission Additional Funding Authorization    June, 2021 
Construction                                   August 2021  December 2021 
In-Use Date                                     Quarter 1 2022 
Bid Proposal Summary 
Only two bids were received.
The low bid was 26% ($393K) over the Port estimate; the second bid was 93% ($1,391K) over the
Port estimate. 


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

COMMISSION AGENDA  Action Item No. 8d                                  Page 4 of 6 
Meeting Date: June 22, 2021 
PORT OF SEATTLE 
LOWEST COMPETITIVE BID 
ESTIMATE 
DATE PREPARED                  2/19/21                        5/15/21 
ESTIMATED COST                $1,502,000                      $2,271,639 
Bidding Context 
According to a report by the Associated General Contractors (Vol. 21, No. 19  May 12-17, 2021),
materials costs rose at a record pace in April with more increases expected. Indications also were
that labor availability was tightening, reflected by a jump in job openings in March.
Authorization Summary 
CATEGORY                    Capital      Expense      Total 
Previous Commission Authorization                 $1,347,490     $861,510    $2,209,000 
Current Request for Authorization                    $366,000      $234,000     $600,000 
Total Authorizations, Including This Request        $1,713,490    $1,095,510   $2,809,000 

Annual Budget Status and Source of Funds 
This project has been included in the 2021 Plan of Finance under C801103 P66 Roof Upgrade at
an estimated total project cost of $1,743,000. 
The expense portion of the project will be covered by expense budgets of Portfolio Management
and Cruise Operations. This project is funded by the General Fund. 
Financial Analysis and Summary 
Project cost for analysis              $2,809,000 
Business Unit (BU)                  Portfolio Management & Cruise Operations 
Effect on business performance    The project will increase 2021 operating expense by
(NOI after depreciation)             approximately $1M and increase annual depreciation
expense by approximately $57K.
IRR/NPV (if relevant)                NA 
CPE Impact                       NA 
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 support Port, tenant, and

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

COMMISSION AGENDA  Action Item No. 8d                                  Page 5 of 6 
Meeting Date: June 22, 2021 
customer needs. This project will support the economic vitality of the operations and contribute
to the preservation of revenue while minimizing the risk of disruption to the operations.
Alternatives and Implications Considered 
ALTERNATIVE 1  Reject All Bids/Cancel Project 
Cost Implications: 
Near term capital savings, offset by higher long-term costs incurred due to deferred maintenance
and much less efficient incremental approach to completing required upkeep and repairs.
Pros: 
(1)   Near term capital savings 
Cons: 
(1)   $249,000 sunk costs to date on project development and design 
(2)   Overall net increase in costs over the proposed project due to emergency repairs and
less efficient incremental approach to required maintenance 
(3)   Higher risk of operational disruption due to potential leaks 
(4)   Higher risk of facility damage due to water infiltration. 
(5)    Indefinite deferral could also lead to the risk of catastrophic failure. 
ALTERNATIVE 2  Rebid at a later date 
Cost Implications: 
Cost to be determined at a later date. Although higher costs would generally be the case over
time, deferral may avoid or mitigate current labor and material cost impacts that have been
associated with the pandemic.
Pros: 
(1)    Shifts potentially disruptive project work to well after the COVID 19 pandemic, when
BHICC, Anthony's and the Cruise activities will have normalized 
(2)    Opportunity to reassess the bid climate in the next few months, when labor and
materials costs may have declined 
(3)    Potential for Increased bid competition if more market interest can be generated 
(4)    Defers near-term capital expenditures at a challenging time for Port budgets 

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

COMMISSION AGENDA  Action Item No. 8d                                  Page 6 of 6 
Meeting Date: June 22, 2021 
Cons: 
(1)   No assurance that material and labor conditions will have improved 
(2)    Delays needed roof maintenance to the summer of 2022 
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 for a total authorization of
$300,000. 
March 23, 2021 -     Commission approved $1,909,000 for the construction phase of the P-66
Roof  Upgrades  Replacement  project  for  a  total  authorization  of
$2,209,000. 











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