PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6a 
ACTION ITEM 
Date of Meeting    February 10, 2015 
DATE:    February 3, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:   David Amble, Seaport Asset Manager 
Catherine Chu, Capital Project Manager 
SUBJECT:  Terminal 18 Berth Maintenance Dredging (Seaport Expense); 
Major Construction On-call Contract for Dredging and Piling Repairs and
Removals (Seaport Expense) 
Amount of This Request:        $1,000,000   Source of Funds:  General Fund 
Est. Total Project Cost:          $2,095,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to: 
(1) Direct staff to develop design documents, conduct sediment testing and environmental
review, obtain permits, and prepare construction documents for the Terminal 18 (T-18)
Maintenance Dredging Project for an estimated cost of $750,000 out of a total project cost
estimate of $2,095,000. 
(2) Advertise for bids and execute a major construction on-call contract for future dredging and
pile repair and removal projects for an estimated initial cost of $250,000. The proposed contract
duration and not-to-exceed value are three years and $4,000,000. 
SYNOPSIS 
The purpose of this project is to restore the depths of vessel berths at T-18 to their designed
depths to ensure that T-18 remains accessible to deep-draft cargo vessels currently in service.
The terminal lease obligates the Port to maintain the berths at the designed depths. Maintenance
dredging at T-18 has been an on-going need due to natural sedimentation and prop wash. This
request is for authorization to proceed with design, environmental studies and permitting, and to
proceed with an on-call major construction dredging and pile repair/removal contract.
The on-call contract is designed to be ready for T-18 maintenance dredging construction when
the design is completed and permits are received. The contract is also designed to be responsive
to other small to medium dredging and pile repair/removal construction needs harbor-wide.

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 3, 2015 
Page 2 of 6 
The total value of this combined request is $1,000,000 bringing the total authorized amount to
$1,145,000.  Future construction projects using this contract, including T-18, will require
additional project authorizations pursuant to Commission Resolution 3605. 
BACKGROUND 
Maintenance dredging is part of the Port's asset management program and staff expects that it 
will continue on a routine basis for the foreseeable future due to the greater frequency of deepdraft
vessels calling at the Port. Recent projects include maintenance dredging at T-46 (2004),
T-30 (2006), T-91 (2006), T-18 (2008), and T-5 (2010, 2012, and 2013). The current budget
plan includes funds for maintenance dredging at T-18 and T-91 later in 2015. Design and
permitting for T-91 maintenance dredging is already underway and the Commission has
previously authorized T-91 for construction, which is currently scheduled for late 2015/early
2016. The Port continues to study the cause of sedimentation, including vessel operations and
sediment transportation from upstream of the Duwamish River.
The Port has been seeking opportunities to improve the efficiency and effectiveness of project 
delivery. Since maintenance dredging and pile repair/removal projects are recurring, the Port
sought and received a long-term programmatic maintenance dredging permit for the West
Waterway (T-5 berths), and the Port is pursuing another one that covers all of the terminals along
the East Waterway, including T-18, T-25, T-30, and T-46. In addition, the Port has been
successful in using indefinite delivery, indefinite quantity (IDIQ) contracts for dredging design
and environmental services, and plans on continuing this process.
On-call construction contracts can be much more efficient for multiple repetitive projects. For
each major construction contract, it takes many months to prepare bid documents, advertise for
bids, and execute the contract.  An on-call contract would combine much of the up-front
contracting-related time for multiple projects. Proceeding with the on-call contract now provides
the Port ample time to prepare contract documents, and to advertise and execute the contract. In
addition, contractors will have sufficient time to ask questions and prepare bids. Once an on-call 
contract is in place, executing a task order for each project should take weeks, but not months,
making the Port more responsive to changing business needs and an often unpredictable
permitting environment. 
PROJECT JUSTIFICATION AND DETAILS 
The proposed project would restore berths at T-18 to their designed depths to maintain and grow
the Port's container business and fulfill the Port's lease obligation to the terminal operator at 
T-18.
Project Objectives: 
Maintain designed depth of -50 feet (Mean Lower Low Water) at T-18 and pursue permitting
for additional water depth, as advance maintenance if feasible;

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 3, 2015 
Page 3 of 6 
Acquire all necessary and required permits from appropriate agencies prior to start of
construction; 
Comply with all conditions stipulated by permit authorizations; and 
Minimize cost to the Port. 
Scope of Work 
This authorization is in two parts:
Design and permitting for maintenance dredging at T-18, which will be performed by Port
staff and outside consultants under an existing indefinite delivery, indefinite quantity (IDIQ)
contract; 
Advertise for bids and execution of an on-call major construction contract designed for future
small to medium sized dredging and pile repair/removal projects. 
Staff plans to return to the Commission for additional authorization for construction within the
on-call contract at the completion of final design and permitting, as the estimated construction
cost exceeds $300,000.  Each additional project using the proposed on-call contract will also
require separate Commission authorizations if the estimated construction cost exceeds $300,000. 
The initial authorization of $250,000 for the contract will cover staff time and initial contractor
costs such as insurance and bond, regardless of any future projects. The proposed duration and
total not-to-exceed value for the contract are three years and $4,000,000.
Schedule 
T-18 maintenance dredging design and environmental studies will begin immediately following
Commission authorization. We expect final design and permitting work to be finished by late
summer/early fall, at which time we plan to return for Commission authorization for construction
during the 2015-2016 winter dredging period. The major construction contract is expected to be
advertised in the spring and executed in the summer, in time for dredging work at T-18. 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Previous Authorizations                       $0     $145,000     $145,000 
Current request for authorization                  $0    $1,000,000    $1,000,000 
Total Authorizations, including this request           $0    $1,145,000    $1,145,000 
Remaining budget to be authorized               $0     $950,000     $950,000 
Total Estimated Project Cost                    $0    $2,095,000    $2,095,000 
Project Cost Breakdown                     This Request       Total Project 
Construction                                $250,000         $1,000,000 
Construction Management                      $50,000         $200,000 
Design/Sediment Testing and Analysis               $500,000          $500,000

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 3, 2015 
Page 4 of 6 
Project Management                         $100,000         $150,000
Permitting                                  $100,000          $150,000 
State & Local Taxes (estimated)                        $0           $95,000 
Total                                      $1,000,000         $2,095,000 
Budget Status and Source of Funds 
The 2015 Operating Budget includes $1,200,000 for spending related to the Terminal 18
Maintenance Dredging project, with an additional $754,000 to be included in the 2016 Operating
budget. Initial costs incurred through the end of 2014 are estimated at $141,000. It is estimated
that approximately $190,000 of the project costs will be operating environmental remediation
liability work. 
This project will be funded by the Seaport General Fund. 
Financial Analysis and Summary 
CIP Category        Expense Project 
Project Type         Renewal & Replacement 
Risk adjusted discount  N/A 
rate 
Key risk factors        Key risk factors include potential cost overruns due to project time
constraints or expansion of project scope due to higher than
anticipated volumes of sediment and/or levels of sediment
contamination. 
Project cost for analysis  $2,095,000 
Business Unit (BU)     Container Operations 
Effect on business      The estimated total project costs will have the following effect on
performance         NOI in future years. Depreciation expense will not be impacted by
this project, as this dredging project is an operating expense. 
NOI (in $000's)           2013    2014    2015    2016    TOTAL 
Incremental Revenue                    0       0       0       0       0 
Incremental Op Exp.       (82)     (58)    (1,200)   (754)    (2,095) 
NOI                (82)     (58)    (1,200)   (754)   (2,095) 
Depreciation 
NOI After Depreciation     (82)      (58)     (1,200)      (754)     (2,095) 
IRR/NPV 
CPE Impact 
Lifecycle Cost and Savings 
Maintenance dredging may occur every three to five years to maintain T-18 at the current design
depths.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 3, 2015 
Page 5 of 6 
STRATEGIES AND OBJECTIVES 
This project supports the asset preservation objective, which ensures that the Port has the
terminal facilities needed to facilitate international trade through the Pacific Northwest. 
TRIPLE BOTTOM LINE 
Economic Development 
Maintaining container terminal vessel berths at adequate depths for navigation maintains existing
customer service and allows the container business to grow. 
Environmental Responsibility 
The proposed project is subject to rigorous environmental reviews.  Design and project
implementation will include practices to avoid and minimize potential negative environmental
effects during dredging. Dredged materials will be disposed of at approved locations based on
consultations with and decisions of the regulatory agencies comprising the Dredge Materials
Management Program. 
Community Benefits 
The permit process requires notification of neighboring communities, agencies of interest and
appropriate environmental groups. Waters near Harbor Island are Treaty-protected "usual and
accustomed" fishing areas. The Muckleshoot and Suquamish Tribes will be consulted during the
permitting process, with the objective of avoiding potential disruption of Treaty fishing access. 
The project manager will collaborate with the Office of Social Responsibility to maximize the
opportunities for small business participation. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Do not proceed with design and permitting for maintenance dredging at T18 
and do not proceed with advertising and executing an on-call major construction contract. This
alternative will result in restricting access to T-18 during low tide cycles by delaying vessel
operations and reducing cargo loading capacity of vessels. This would compromise customer
service and increase shipping costs for cargo owners using the Port, resulting in possible loss of
existing and future customers to other ports. At some point, the Port will also not be meeting its
lease obligations at T-18 if maintenance dredging is not performed. Maintenance dredging for
each terminal would be advertised and executed as separate project-specific contracts. This is
not the recommended alternative. 
Alternative 2)  Proceed with design and permitting for maintenance dredging at T-18 but do
not proceed with advertising and executing an on-call major construction contract. This would 
add additional contracting time for each future dredging project. This is not the recommended
alternative.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 3, 2015 
Page 6 of 6 
Alternative 3)  Proceed with design and permitting for maintenance dredging at T-18 and
proceed with advertising and executing an on-call major construction contract. This is the
recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None