PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6e 
ACTION ITEM 
Date of Meeting    September 13, 2016 
DATE:    September 6, 2016 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Kenneth R. Lyles, Director, Fishing & Commercial Operations 
Rod Jackson, Capital Project Manager 
SUBJECT:  Fishermen's Terminal Net Sheds 3, 4, 5, and 6 Roof Replacement (CIP #C800526) 

Amount of This Request:        $195,000   Source of Funds:           Tax Levy 
Est. Total Project Cost:        $3,186,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to complete  design
documents for the Fishermen's Terminal Net Sheds 3, 4, 5, and 6 Roof Replacement Project
including a solar panel demonstration study on one net shed for an estimated cost of $195,000,
bringing the current authorization to $270,000 for an estimated total project cost of $3,186,000. 
SYNOPSIS 
The Fishermen's Terminal Net Sheds 3, 4, 5, and 6 roofs are at the end of their service lives and
are in need of new roofing systems. This memo requests authorization to proceed with the final
design phase of the development process. This project team will also review the feasibility and
installation of adding photovoltaic (PV)  solar panels to one of the four net  sheds as a
demonstration study and add a downspout stormwater treatment system to each of the buildings 
including the evaluation and possibility of packaging construction work together with the T-91
Building C-173 Roof Overlay Project in a single bid package to increase small business
opportunities.
The buildings are 100 percent occupied and primarily used as net shed storage spaces leased
within the maritime industry. Fishermen's Terminal is the home port of the North Pacific fishing
fleet and the long-term plan has assumed that net shed storage will continue to be a core function
at Fishermen's Terminal. Net shed storage is one of the terminal's amenities that helps retain
fishermen as tenants and is part of the infrastructure that will be required to double the economic
value of the fishing and maritime sectors, as envisioned by the Century Agenda. Approval of
this authorization will not affect the long-term development plan for the terminal. This project
was included in the 2016 plan of finance.

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 2 of 8 
BACKGROUND 
Construction of the Fishermen's Terminal net sheds Nos. 3, 4, 5, and 6 took place in 1944, 1953, 
and 1956. The existing four roofing systems cover approximately 50,234 square feet in total and
range from approximately 58 to 70 years old. In 2012, the Port initiated condition assessments
and preliminary design on these buildings. The assessment at the time determined the roof
systems are at the end of their service lives.
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 net shed buildings. 
Net Shed Buildings         Construction Date         Approx. Sq. Footage 
#3                   1944                  13,130 
#4                   1944                  10,530 
#5                   1956                  15,054 
#6                   1954                  11,520 
PROJECT JUSTIFICATION AND DETAILS 
The proposed project would preserve important building assets and revenues associated with the
leased storage space, extend the life of the building structures and minimize potential Port
liability.  Deferring or foregoing this work will result in continued deterioration of the roof
system components.  Proactive asset stewardship is the key to reducing the total cost of
ownership to the Port over time. The lease agreement between the Port and the affected tenants 
has the maintenance and repair of the roof as an obligation of the Port. The Port is also assessing
opportunities to increase small business participation in the construction contract.  We will
update the Commission on this analysis when we return to Commission for authority to advertise
and execute a construction contract. 
Project Objectives 
Provide a new roofing system that will extend the useful life of Net Sheds Nos. 3, 4, 5, 
and 6 by 30 years. 
Complete the project safely on schedule and on budget. 
Minimize impacts on the environment. 
Minimize disruptions to Port tenants, operations, and the facility. 
Include environmentally sustainable components and construction methods as
appropriate. 
Preserve future revenues from the building. 
Evaluate the possibility of combining construction with other nearby roofing projects to
save project costs and increase small business opportunities. 
Scope of Work 
The scope of work for the Fishermen's Terminal Net Sheds 3, 4, 5, and 6 roof replacements 
includes the evaluation and design for the following:

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 3 of 8 
New energy-efficient roofing systems. 
Bird deterrent systems. 
Installation of security access ladders. 
Fall protection and attachments. 
Determine the feasibility of a bio-filtration and stormwater treatment (Rain barrels)
system for rooftop runoff. 
Install a crystalline solar panel (Photovoltaic production) system at one of the net sheds 
to serve as a demonstration project that will provide 100 percent of the current
electrical usage for that specific net shed. 
Use environmentally sustainable components and methods as appropriate. 
Schedule 
The design and permitting phase is expected to be completed by December 2016 with the
construction phase expected to begin in 2017 and be fully complete by November 2017. 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense    Total Project 
Original Budget                            $0          $0           $0 
Previous Authorizations                   $75,000          $0        $75,000 
Current request for authorization              $195,000          $0       $195,000 
Total Authorizations, including this request      $270,000          $0       $270,000 
Remaining budget to be authorized         $2,916,000          $0     $2,916,000 
Total Estimated Project Cost              $3,186,000          $0     $3,186,000 
Project Cost Breakdown                     This Request       Total Project 
Construction                                     $0         $2,452,000 
Construction Management                      $40,000          $225,000 
Design                                   $110,000          $180,000 
Project Management                          $34,000          $74,000
Permitting                                   $11,000           $22,000 
State & Local Taxes (estimated)                        $0          $233,000 
Total                                       $195,000         $3,186,000* 
* The current Net Shed 3, 4, 5, and 6 Roof Replacement's total estimated project cost of $3,186,000 is an
increase from the $2,734,000 total estimated project costs shown in the 2016 plan of finance. The
increase is because the four existing structures will have a minor increase in labor and material costs
including the anticipated addition of rain barrels to each net shed including solar panels to one net shed 
as a demonstration project.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 4 of 8 
Budget Status and Source of Funds 
This project was included in the 2016 plan of finance combined under CIP #C800526,
Fishermen's Terminal Net Sheds 3, 4, 5, and 6 Roof Replacement, in the amount of $2,734,000.
The additional $452,000 required to fund this project is available under CIP #C800002
Contingency Renewal & Replacement. This project will be funded by the tax levy.
Financial Analysis and Summary 

CIP Category           Renewal/Enhancement 
Project Type             Renewal & Replacement 
Risk adjusted discount rate   Roof  NA 
Solar  7.5% 
Key risk factors            Actual costs could exceed the current estimates. 
Future revenues from the building could be less than
currently expected. 
Energy production could be less than estimated. 
Solar panels could require additional annual
maintenance. 
Project cost for analysis     $3,186,000 (Roof $2,773,000 & Solar $413,000) 
Business Unit (BU)        Fishing & Commercial Operations 
Effect on business        Roof Replacement: 
performance           This project is a renewal & replacement project and
preserves Net Operating Income (NOI). This project does
not generate additional NOI. 
Preserves Net Sheds 3, 4, 5, and 6 Net Operating Income
of approximately $260,000 per year excluding major
maintenance/compliance expenses. 
Increases depreciation expense by approximately
$110,920 per year based on a 25 year useful life for the
roof. 
Solar Panels: 
Estimated impact on Net Operating Income (NOI) and
Depreciation for years 2018 through 2022: 
NOI (in $000's)   2018  2019  2020  2021  2022 
NOI         ($4)   ($4)   ($4)   ($4)   ($5) 
Depreciation     ($14)  ($14)  ($14)  ($14)  ($14) 
NOI After
($18)  ($18)  ($18)  ($18)  ($18) 
Depreciation

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 5 of 8 

IRR/NPV            Roof Replacement: 
The NPV is the present value of the project cost. 
Solar Panels: 
NPV         Payback 
(in      IRR     (in
$000's)          years) 
($457)    NA     NA 
Lifecycle Cost and Savings 
Preliminary lifecycle cost analyses have been developed for the project to identify the lowest
total cost of ownership and determine which of the roof design options will be appropriate for the
new roofing system and the facility. Annual Operating and Maintenance costs for the roof
system are forecasted to decrease for the net sheds because of the replacement and installation of
these new roofing systems.
STRATEGIES AND OBJECTIVES 
This project supports the Port's Century Agenda strategy to "position the Puget Sound region as
a premier international logistics hub", "doubling the economic value of fishing and maritime
sectors" and be the greenest and most energy efficient port in North America by: 
Investing in and preserving a valuable Port asset. 
Continuing to provide fishermen with storage space, in close proximity to their vessels
and business, for their gear/materials. 
Maintaining the long-term revenue generating capability of the Fishermen's Terminal net
shed buildings. 
Fulfilling lease commitments and obligations to the Port's tenants. 
Proactively providing stormwater treatment of rooftop runoff. 
Investing in renewable energy sources such as solar panel (photovoltaic production)
system demonstration project at one of the net sheds. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Maintain the current state and delay replacement of the net shed roofs.
Maintenance costs of $21,050 annually (averaged over 12 months) will continue. 
Cost Implications: $2,773,000 of project funding will not be needed.
Pros: 
No additional major capital funding would be required. 
Allows port to reallocate capital investment dollars. 
Cons:

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 6 of 8 
Increases the chances that the interior of the facility will be damaged due to water
infiltration. 
Increase of probable construction costs in the future while emergency repair costs
continue to increase. 
The cost of a future roofing project in the event of roof failure would be the full cost
of replacement ($2.77 million) plus escalation and the cumulative on going expense
costs. Risk cost of lost tenant space due to emergency repairs is unknown but likely
would be high. 
Safety of the tenant could be compromised due to the slip hazard to tenant and
employees. 
Indefinite deferral could also lead to the risk of catastrophic failure. 
Maintenance cost will continue. 
This is not the recommended alternative. 
Alternative 2  Replace the entire existing roofing system with a modified bitumen 3-ply roof
that has a 30 year life and install a new security ladder, gutters, and fall protection system. 
Cost Implications: A cost of $2,773,000 of project funding is needed to implement the project. 
Pros: 
Install entirely new Modified Bitumen 3-ply Roofing and gutter system that will
protect our assets and have a 30 year life span and serve the Port and the tenants well. 
Replacing the roof, security ladders, gutters, and fall protection systems will provide
the lowest lifecycle cost. 
Helps to assure a stronger positive tenant experience and avoids potential safety
hazards. 
Provides protection of Port assets. 
Increase safety with the installation of fall protection. 
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: 
This alternative uses $2.77 million of capital that might otherwise be made available
for other uses on other projects. 
Foregoes the opportunity to install solar panels on these roofs. 
This is not the recommended alternative. 
Alternative 3  Replace entire existing roofing system and gutters with a 20-year PVC
membrane roofing system, security ladders, gutter, and fall protection system replacements.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 7 of 8 
Cost Implications: $2,876,000 in project funding will be needed. Total project costs would be
more than the anticipated budget with the installation of the PVC membrane and 20-year roof.
This cost differential is for material and a less-than-desirable warranty duration.
Pros: 
A new 20-year roofing and gutter system investment will protect our assets. 
Cons: 
Additional cost for the PVC membrane is higher than the modified bitumen 2-ply
roofing system due to the added material and cost handling. 
Foregoes the opportunity to install solar panels on these roofs. 
This alternative uses $2.87 million of capital that might otherwise be made available
for other uses on other projects. 
This is not the recommended alternative. 
Alternative 4  Replace the entire existing roofing system with a modified bitumen 3-ply roof
that has a 30-year life, with new security ladders, gutters, and fall protection system as in
Alternative 2 and install a solar panel system on one net shed building to serve as a
demonstration project to generate power with cabling, meters, and structural upgrades that will
produce approximately 11,000 kWh of power per year. 
Cost Implications: An additional $413,000 is required to include solar panels. This cost is above
and beyond the base cost of $2.77 million for Alternative 2's investment.
Pros: 
This solar panel installation could potentially provide and generate approximately
11,000 kWh of power per year (the current usage is approximately 9,934 kWh per
year for the selected net shed). 
This installation could potentially save approximately $840 per year in electrical
energy costs (at current rates), reducing yearly operating costs. 
This installation could be eligible for grant reimbursement and incentives. 
Replacing grid-produced electrical energy with renewable energy reduces greenhouse
gas emissions by about 279 lbs. of CO2/year. 
Providing renewable power systems meet three Century Agenda goals: reduces
greenhouse gas emissions, increases renewable energy use, and conserves energy use
to meet overall energy demand. Plays a role in building clean infrastructure and
demonstrates the Port's leadership in competing globally to produce clean energy
using Washington-based industries. 
To be eligible for grants, solar panels are manufactured in Washington State and
provide support for a growing industry. 
Replacing the roof, security ladders, gutters, and fall protection systems during
construction will provide the lowest lifecycle cost.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 8 of 8 
This project would provide for a warranted roof that will minimize the cost of roof
repairs going forward. 
This option provides the opportunity to add on for future crystalline solar panel
expansion by increasing the number of solar panels at each additional net shed. 
Cons: 
This alternative uses an additional $413,000 to include a solar and structural upgrade
cost for one building or $3.18 million of capital in aggregate that might otherwise be
made available for other uses on other projects. 
The cost of the solar-panel system installation does not meet normally accepted
project financial criteria for new capital projects.
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
Slide presentation. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
May 17, 2016 - Briefing on Fishermen's Terminal Long Term Strategic Plan.