PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4b 
ACTION ITEM 
Date of Meeting      June 14, 2016 
DATE:    June 7, 2016 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Fred Chou, Capital Project Manager 
Kenneth R. Lyles, Director, Fishing and Commercial Operations 
SUBJECT:  Terminal 91 Substation Upgrade Project (CIP #C800439) 
Amount of This Request:         $154,000   Source of Funds:       General Fund 
Est. Total Project Cost:          $2,149,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to increase overall project
funding for the Terminal 91 Substation Upgrade Project (CIP #C800439) in the amount of
$154,000 bringing the total authorized amount to $2,149,000. 
SYNOPSIS 
Terminal 91 is an important regional center supporting marine and marine related businesses.
Current uses include vessel moorage, cold storage, bulk storage, vessel outfitting and
maintenance, maritime related manufacturing, cruise operations and other activities. Reliable
and safe electrical power infrastructure meeting operational and tenant needs is essential. The
Port awarded and executed a major works construction contract last year to upgrade several
substations. The contractor procured long lead items such as power transformers and began field
work earlier this year. S ubstantial completion is expected by early July. 
Additional work by the contractor and additional staff resources are required to address differing
site conditions/aged infrastructure in order to bring them to current electrical codes. In addition,
the main transformer fabrication was delayed by approximately four months due to the need to
comply with new Department of Energy regulations that became effective in 2016. Staff also
recently discovered that conditions of electrical equipment on vessels that berth at the terminal
can vary significantly, some very modern while some are very old and problematic.  To
accommodate these vessels and to ensure the terminal substation and operations are fully
protected from potential electrical power issues, Port Engineering recommended that additional
protective features and ground fault devices be designed and installed. These additional
protective features and devices would have prevented the substation outages that occurred at the
terminal in early May. Staff believes this is a sound investment to ensure longevity of Port assets
while maintaining revenue stream. 

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 7, 2016 
Page 2 of 5 
Staff has been diligently monitoring project budget and forecasts an additional $154,000 will be
needed to complete and close out the project.
BACKGROUND 
Power to Terminal 91 comes through two main distribution substations located within Terminal
91. They in turn supply power to 15 substations. Three substations and associated equipment
were found to be unreliable and approaching the end of their service lives.
After completing the design last spring, Port advertised, awarded and executed a major works
construction contract with a bid price of $1,027,031, or $68,731 above the Engineer's Estimate. 
Terminal 91 has much aged infrastructure - some dating back to the Navy era. When a
construction project disturbs areas not  originally anticipated, bringing existing electrical
infrastructure into  compliance with current electrical codes to protect life safety is often
mandatory. This was the case with the substation upgrade work. Because electrical cable splices
could not be made in an existing vault due to new electrical code requirements, additional
investigation and engineering design were required before the contractor was able to begin
installing a 260 lineal-foot concrete encased electrical duct bank through change order. During
excavation, an abandoned asbestos encased line found to be in the way also had to be abated 
before removal. This is just one example of many challenges staff has faced. 
Staff has been diligently monitoring project budget and estimates an additional $154,000 will be
needed to complete and close out the project  including implementing the  recommended
additional scope to install protective equipment to address potential power issues from vessels. 
The project was anticipated in the 2016 Plan of Finance as a capital expenditure. 
PROJECT JUSTIFICATION AND DETAILS 
The project replaces and upgrades Terminal 91 substations/substation equipment at the end of
their service lives. This renewal and enhancement project will protect and maintain the longterm
revenue stream of the facility.
Project Objectives 
Replace existing substations and equipment with the most cost effective and sustainable
solution taking into account full lifecycle costs and total costs of ownership and
environmental performance 
Create a design that allows for safe and easy maintenance, and easy future
expansions/replacement
Minimize construction impacts to terminal operations and existing tenants 
Complete project within budget and schedule


Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 7, 2016 
Page 3 of 5 
Scope of Work 
The work scope of this project includes: 
Design and construct a replacement substation 
Upgrade two existing substations 
Design and construct supporting infrastructure, such as duct banks, conduits, and
cabling to and from the substations 
Full commissioning of the systems to ensure functionality and safety 
Schedule 
Start           Finish 
Commission Authorization for Design              March 2014      March 2014 
Design                                  April 2014      March 2015 
Advertisement/Bid/Award/Construction              April 2015   June/July 2016* 
* Original Finish Date at time of construction funding request was April 2016.
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                      $1,995,000          $0    $1,995,000 
Previous Authorizations                 $1,995,000          $0    $1,995,000 
Current request for authorization              $154,000          $0      $154,000 
Total Authorizations, including this request     $2,149,000          $0    $2,149,000 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost              $2,149,000          $0    $2,149,000 
Project Cost Breakdown                     This Request       Total Project 
Construction                                 $90,000         $1,359,000 
Construction Management                      $28,000         $176,000 
Design & Design Support During                 $14,000         $339,000 
Construction 
Project Management                          $16,000         $114,000
Permitting                                      $0           $39,000 
State & Local Taxes (estimated)                     $6,000          $122,000 
Total                                       $154,000         $2,149,000 
Budget Status and Source of Funds 
This project was included in the 2016 Plan of Finance under CIP #C800439 - T91 Substation
Upgrades for a total cost of $2,089,000. The additional $160,000 is available under C800002  
Contingency Renewal & Replacement. 

Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 7, 2016 
Page 4 of 5 
This project will be funded by the General Fund. 
Financial Analysis and Summary 
CIP Category     Renewal/Enhancement 
Project Type      Renewal & Replacement 
Risk adjusted     N/A 
discount rate 
Key risk factors    Project costs could exceed current estimates 
Project cost for    $2,149,000 
analysis 
Business Unit     Maritime Portfolio Management 
(BU) 
Effect on business   No incremental operating revenue is directly associated with this project.
performance       Project preserves Terminal 91 revenue (from multiple lines of business). 
Incremental savings on maintenance expense, if any, is not yet known. 
This project will increase depreciation for the first 25 years by
approximately $77K per year based on a 25-year useful life for the
electrical components and a 50-year useful life for the infrastructure and
will reduce Net Operating Income after Depreciation by a corresponding
amount. 
IRR/NPV       The NPV is the present value of the project cost ($2,149,000). 
CPE Impact      N/A 
Lifecycle Cost and Savings 
The project implements lowest total cost of ownership for the replacement substations and
equipment while balancing environmental performance. Annual operating and maintenance
costs for the new substations and equipment are expected to decrease.
STRATEGIES AND OBJECTIVES 
This project supports the Port's Century Agenda to position the Puget Sound region as a premier
international logistics hub to double the economic value of the fishing and maritime cluster, and
be the greenest and most energy efficient port in North America by: 
Investing in and preserving a valuable Port asset. 
Maintaining the long-term revenue generating capability of Terminal 91. 
Reducing maintenance by replacing old, outdated equipment with energy efficient
equipment and controls. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Defer some remaining work and install less permanent infrastructure. Do not
proceed with design and installation of additional ground fault/safety equipment.

Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
June 7, 2016 
Page 5 of 5 
Cost Implications: Reduce amount of additional funds needed to $90,000 to complete the
construction. 
Pros: 
(1)  Less additional capital funding would be required 
Cons: 
(1)  Some cost savings would be achieved but long term durability would be
compromised 
(2)  Unable to serve/accommodate vessels that may have aged equipment/power issues
and fully protect newly installed power infrastructure 
(3)  Increase in maintenance costs 
(4)  This alternative would require some re-engineering and other staff time, and delay
construction completion 
This is not the recommended alternative. 
Alternative 2  Continue and complete substation replacement work and additional scope
identified by Port Engineering. 
Cost Implications: Additional estimated capital cost of $154,000 is needed 
Pros: 
(1)  Allows the remaining work and durable systems to be implemented, enabling the
new assets to achieve full service life potential 
(2)  No additional design required to implement this alternative 
(3)  Reduce maintenance costs as per the original design 
Cons: 
(1)  Additional capital funding is necessary and would consume capital funds that could
possibly be utilized on other projects 
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
March 10, 2015  Commission authorized $1,571,000 construction funding for the 
Terminal 91 Substation Upgrade Project 
March 11, 2014  Commission authorized $349,000 design funding for the Terminal 91
Substation Upgrade Project 


Revised March 28, 2016  pjw