COMMISSION 
AGENDA MEMORANDUM                        Item No.          8d 
ACTION ITEM                            Date of Meeting      March 28, 2023 

DATE:     March 9, 2023 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Kelly Purnell, Capital Project Manager 
Trevor Panger, Real Estate Property Manager 
Kenneth Lyles, Director of Maritime Operations and Security 
SUBJECT:  Maritime Industrial Center Electric Equipment Procurement 
Amount of this request:               $1,800,000 
Total estimated project cost:          $6,780,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to execute contract(s) for long-lead
major electrical equipment for the Maritime Industrial Center Electrical Infrastructure
Replacement project. This authorization is for $1,800,000 of a total estimated project cost of
$6,780,000. (CIP# C801241) 
EXECUTIVE SUMMARY 
This project will replace the electrical infrastructure at the Maritime Industrial Center (MIC). The
site, located just west of Fishermen’s Terminal, currently has a tenant mix of storage, warehouse,
maintenance and repair shops, boatyard and marine services, and fishing vessel support
operations. A large majority of the electrical infrastructure that serves the tenants is
approximately 25 years old. Though electrical systems generally last 20 to 30 years, their
proximity to seawater has caused it to deteriorate at an expedited rate. An arc flash study and
condition assessment were performed on the property in 2020 and determined that several
pieces of equipment need replacement for safety reasons as they are not compliant with National
Electrical Code (NEC) standards and are too dangerous to service properly. 
The replacement of the infrastructure is critical to maintaining reliable and resilient electrical 
service to the MIC facilities, ensure that the Port meets its tenant obligations, and continues to
leverage the economic opportunities that result in well managed and maintained assets. To not
further delay this essential work, early purchasing of large electrical equipment is necessary due
to extensive long-lead times for procuring the equipment. 

Template revised January 10, 2019.

             COMMISSION AGENDA – Action Item No. 8d                                  Page 2 of 7 
Meeting Date: March 28, 2023 
JUSTIFICATION 
This project supports the following Century Agenda and Maritime Division strategic goals: 
Century Agenda: 
1.  Responsibly Invest in the Economic Growth of the Region and All Its Communities. 
2.  Be a Highly Effective Public Agency. 
Maritime Division: 
1.  Asset Management. 
2.  Sustainability. 
The project will include necessary upgrades to the electrical system by replacing current
equipment that is dangerous to work on and at risk of failure. This investment will increase the
asset value of the MIC by ensuring that the site facilities are functioning well and efficiently,
removing dangerous water intrusion into electrical areas, and increasing the reliability of power
to the Port’s tenants. Additionally, the upgraded electrical equipment will provide electrical
capacity for future sustainable EV charging capabilities and potential additional shore power that
is not currently available with the existing equipment. 
Purchasing the equipment in advance of construction contracting will mitigate risks to the project
schedule due to long-lead times in electrical equipment procurement times, currently estimated
between 72 and 85 weeks. 
Diversity in Contracting 
WMBE aspirational goals have not been established for purchasing of the electrical equipment.
The procurement of the equipment from available suppliers will be very prescriptive and based
on technical credentials and performance. WMBE goals will be established for the larger general
construction contract that will be solicited when the project is ready to be constructed. 
DETAILS 
Maritime Industrial Center – 2700 Commodore Way, Seattle, WA 98199 
The Maritime Industrial Center (MIC) is a 6.43-acre facility acquired from the US Coast Guard in
1993 and has since been an important addition to the Port’s infrastructure for supporting the
commercial fishing and industrial maritime sectors in our region and beyond. The property
currently serves as a base for a range of private- and public-sector uses, from:  fishing vessel
provisioning, maintenance and repair; boatyard operations; and a new informal hub for a state
agency. 


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

             COMMISSION AGENDA – Action Item No. 8d                                  Page 3 of 7 
Meeting Date: March 28, 2023 
Tenant Mix: 
Building A-1: 
•   Mix of office, warehouse, storage, and industrial uses, to include vessel repair and
maintenance shops, silk screen printing, retail product  distribution, and boatyard
operations, and fishing sustainability efforts. 
Building A-2, yard and West Dock moorage: 
•   Boatyard and marine services (metal fabrication, woodwork, heating and cooling, 
electronics) 
Building A-3, A-4, A-5, yard and East Pier moorage: 
•   Fishing vessel support operations 
West Pier and Central Pier: 
•   Fishing vessel moorage, tribal vessel moorage 
The project scope consists of demolishing existing switchboards and structural concrete pads; 
decommissioning conduits and wire;  and replacing  all with new  structural infrastructure,
conduits, wires, switchboards, and associated equipment. The switchboards will be upsized from
existing capacity of between 400 and 600 amps to 1200 amps for the smaller switchboards and
from 2500 Amps to 4000 Amps for the main switchboard for future capacity needs (e.g., EV
chargers, shore power). This project will not increase the electrical load at the site at this time.
The estimated electrical equipment procurement is $1,800,000 with total estimated project costs 
of $6,440,000. Funding for this project was included in the 2023 capital budget and plan of
finance.
Scope of Work 
The following electrical equipment will be replaced: 
1.  Switchboard 4SP and 2SPN (service entry to site) 
2.  Switchboard 4W and 2W (wharf) 
3.  Switchboard 4P and 2P (NE side of Building A-1) 
4.  Switchboard EY4 (east side of Building A-1) 
5.  Switchboard SEY4 (lighting connection for east lot) 
6.  Switchboards EY4 and SEY4 will be consolidated with 4P and 2P in one location that has
better access. Additionally, this will eliminate a stormwater intrusion point at EY4. 
Site work: 
1.  Provide new conduits and conductors from Seattle City Light to new MIC main distribution
switchgear. 
2.  Provide new conduits and conductors from new MIC main distribution switchgear to: 
a.  New electrical switchboard at Mooring Pier 
b.  New electrical switchboard at Wharf 
3.  Provide new electrical vaults. 

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

             COMMISSION AGENDA – Action Item No. 8d                                  Page 4 of 7 
Meeting Date: March 28, 2023 
The following equipment will be purchased in advance per this authorization: 
1.  New main electrical distribution 
A.  Main switchgear, switchboards including main circuit breakers and feeder circuit
breakers, transformer. 
2.  New electrical distribution at mooring pier 
A.  Switchboards including main circuit breaker and feeder circuit breakers,
transformer. 
3.  New electrical distribution at wharf 
A.  Switchboards including main circuit breakers and feeder circuit breakers,
transformer. 
Schedule 
Activity 
Commission design authorization                                      October 11, 2022 
Design start                                                                2022 Quarter 4 
Commission authorization for major electrical equipment               2023 Quarter 1 
procurement 
Commission construction authorization                                2024 Quarter 3 
Construction start                                                        2024 Quarter 4 
Cost Breakdown                                     This Request           Total Project 
Design                                                           $0               $850,000 
Electric Equipment                                       $1,800,000             $1,800,000 
Construction                                                      0             $4,130,000 
Total                                                         $1,800,000              $6,780,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1 – Require electrical equipment to be procured by general contractor. 
Cost Implications: 
• Additional $2.3M overall project cost (due to additional escalation and GC markup on
equipment). 
• Total estimated project cost $9.1M. 
Pros: 
(1)   Transfers risk to the contractor. 
(2)   Advances Century Agenda goals and Maritime Division strategic goals. 
Cons: 
(1)   High likelihood of causing project delays due to estimated 72-85 week procurement
lead times for electrical equipment. 

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

             COMMISSION AGENDA – Action Item No. 8d                                  Page 5 of 7 
Meeting Date: March 28, 2023 
(2)   Potential for longer equipment design duration due to Port quality control process. 
(3)   More expensive due to overheads applied to the equipment purchase. 
This is not the recommended alternative. 
Alternative 2 – Defer project as a whole: maintain the current state and delay electrical upgrades
and repairs. 
Cost Implications: 
Assuming a 6% escalation is applied to the project over the next four years delaying the project
would cost an additional $250,000 for each year it is delayed. Current maintenance has been
minimal, and the equipment cannot be safely worked on by Port Electricians; therefore, costs to
maintain are not included. 
Pros: 
(1) Deferred initial capital cost. 
Cons: 
(1)   The equipment cannot currently be serviced safely. 
(2)   The equipment is already in a state of advanced disrepair due to the proximity to
saltwater and areas of stormwater intrusion. 
(3)   If the equipment fails, a long-term diesel generator will be required to provide power
to building tenants and moorage customers. This will impact air quality and cost
significantly more over time, in large part due to high fuel costs. 
This is not the recommended alternative. 
Alternative 3 – Early equipment procurement in advance of construction contract. 
Cost Implications: 
• No additional escalation and GC mark-up on electrical equipment (savings of $2.3M). 
• Overall project cost estimated at $6.78M. 
Pros: 
(1)   Minimizes  potential  construction  delays  due  to  long-lead  electric  equipment
procurement. 
(2)   Significantly less expensive due to escalation and GC mark-up avoidance. 
(3)   Allows for very prescriptive control of equipment procurement. 
(4)   Advances Century Agenda goals and Maritime Division strategic goals. 
Cons: 
(1)   Maintains Port risk if equipment is delayed or damaged during delivery. 
(2)   May require temporary storage of equipment if procurement times come down. 
(3)   Adds some complexity to timing GC construction contract procurement. 
This is the recommended alternative. 


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

             COMMISSION AGENDA – Action Item No. 8d                                  Page 6 of 7 
Meeting Date: March 28, 2023 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                 $1,500,000               $0      $1,500,000 
Revised estimate                                $6,780,000              $0      $6,780,000 
AUTHORIZATION 
Previous authorizations                            $850,000               $0        $850,000 
Current request for authorization                $1,800,000               $0      $1,800,000 
Total authorizations, including this request       $2,650,000               $0      $2,650,000 
Remaining amount to be authorized            $4,130,000             $0     $4,130,000 
Annual Budget Status and Source of Funds 
This project was included in the 2023 Capital Plan under CIP #801241 Maritime Industrial Center
Electrical Infrastructure Replacement at an estimated total project cost of $6,413,000. 
This project will be funded by the General Fund. 
Financial Analysis and Summary 
Project cost for analysis              $6,780,000 
Business Unit (BU)                  Maritime Portfolio Management 
Effect on business performance     The project will maintain annual gross revenue over
(NOI after depreciation)             $500K from MIC tenants. Depreciation will increase by
$135,600 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 
Future Revenues and Expenses (Total cost of ownership) 
This project will provide for reliable and resilient electrical power to the MIC facilities for the next
25-30 years. This upgrade will provide protection of Port assets and extend their useful life,
provide for additional future electrical capacity to support Port sustainability goals, and increase
economic development potential. Maintaining existing assets will preserve the economic vitality
of our operations and serve the Port, tenants, and their customers well by providing a safe and
sustainable working environment. 
ADDITIONAL BACKGROUND 
None. 

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

             COMMISSION AGENDA – Action Item No. 8d                                  Page 7 of 7 
Meeting Date: March 28, 2023 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
October 11, 2022 – The Commission authorized design. 
















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