PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6b 
ACTION ITEM 
Date of Meeting     February 4, 2014 
DATE:    January 27, 2014 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Michael Burke, Director Seaport Leasing & Asset Management 
Ticson Mach, Capital Project Manager 
SUBJECT:  Terminal 46 (T-46) Development Program (CIP #C102554) 
Amount of This Request:        $6,500,000   Source of Funds:       General Fund 
Est. Total Project Cost:       $20,000,000 to 
$35,000,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to direct staff to purchase
materials, advertise for construction bids, execute construction contracts, and fund the
construction phase of the stormwater improvements portion of the Terminal 46 Development
Program in the amount of $6,500,000, bringing the total amount currently authorized for the
program to $12,500,000. 
SYNOPSIS 
On April 9, 2013, Commission approved $6,000,000 in permitting, design, and project
management funds for T-46 Development Program. The stormwater phase of this project will
utilize an estimated $1,500,000 of those funds. The design is near completion and the stormwater
project is ready to advance into the construction phase. This phase will include purchase of
materials, advertising for construction bids, execution of a major construction contract, and all
other work necessary to complete the project, and is included within the 2014 Budget and Plan of
Finance.
BACKGROUND 
Total Terminals, Inc. (TTI) is the current tenant at T-46. The 13th Amendment to the TTI lease
for T-46 committed the Port to certain capital improvements to the terminal.  The Commission 
previously authorized  permitting, design, and project management funding  for  T-46  lease
improvements for an estimated cost of $6,000,000 as part of the estimated $20,000,000 to
$35,000,000 lease amendment commitments at T-46.


Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
January 27, 2014 
Page 2 of 6 
PROJECT JUSTIFICATION AND DETAILS 
Under the lease amendment, the Port is obligated to construct a stormwater treatment system that
meets current stormwater standards in conjunction with Lessee's implementation of operational
best management practices.  TTI is required,  under Ecology Administrative Order Docket
Number 8864, to have stormwater treatment installed and operational at T-46 no later than
September 30, 2014, to meet Industrial Stormwater General Permit (ISGP) Level 3 corrective
action. 
The majority of T-46's stormwater runoff comes from four distinct drainage basins (basins 2, 5,
6, and 8) and discharges to Elliott Bay through four main outfalls (outfalls 2, 5, 6, and 8). Basin
2, located at the northern end of the container terminal, is currently part of a sublease with the
Washington State Department of Transportation (WSDOT) for the Alaskan Way Viaduct
Replacement Project for barge transfer of spoils from the tunnel excavation.  The majority of
basin 2 is currently covered under a separate General Stormwater Construction Permit. 
However, when WSDOT's lease ends (2016 or later), TTI may be required to treat this outfall in
addition to the other three outfalls. Staff will request the remaining construction funding in the
future. 
Project Objectives 
Install stormwater treatment systems at three existing outfall locations (outfalls 5, 6, and 8). 
Minimize disruption to the tenant and tenant operations. 
Incorporate environmentally sustainable practices into the project where practical. 
Complete project on time and within budget. 
Scope of Work 
The project consists of the following components: 
Remove existing manholes and connecting pipes. 
Install the stormwater treatment systems, connecting pipes, and flow control manholes. 
Re-pave area of disruption. 
Schedule 
Start         Finish 
Commission Authorization for Construction       February 2014    February 2014 
Advertise and Award                     February 2014      June 2014 
Construction                              June 2014   December 2014

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
January 27, 2014 
Page 3 of 6 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary             Capital      Expense  Total Program 
T-46 DEVELOPMENT Program 
Original Budget                            $0          $0          $0 
Previous Authorizations                 $6,000,000          $0    $6,000,000 
Current request for authorization            $6,500,000          $0    $6,500,000 
Total Program Authorizations, including     $12,500,000          $0   $12,500,000 
this request 
Remaining budget to be authorized             TBD        TBD        TBD 
Total Estimated Project Cost             $20,000,000         $0   $20,000,000
to                      to
$35,000,000              $35,000,000 
Project Cost Breakdown                     This Request   Total Stormwater
Project 
STORMWATER IMPROVEMENTS 
Construction                               $5,890,000         $5,360,000 
Construction Management                     $230,000         $230,000 
Design                                   $380,000         $1,480,000 
Project Management                             $0         $280,000 
Permitting                                      $0          $120,000 
Total                                      $6,500,000         $8,000,000 
Budget Status and Source of Funds 
The T-46 Development CIP was included in the 2014 Draft Plan of Finance under Committed-
Authorized CIP #C102554 T-46 Development  in the amount of  $35,114,000  (including
actual/forecasted spending in 2013). The funds for the Stormwater Improvement Project were/are
included in this CIP. 
This project will be funded from the General Fund. 
Financial Analysis and Summary 
CIP Category             Renewal/Enhancement 
Project Type              Infrastructure Upgrade 
Risk adjusted discount rate     Not applicable

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
January 27, 2014 
Page 4 of 6 
Key risk factors              Construction costs may increase due to market trends. 
Unforeseen obstruction and contaminated material due
to deep excavation. 
Project schedule could be delayed due to project
complexity, weather condition, or the need to
minimize tenant disruptions. 
Project cost for analysis        $8,000,000 
Business Unit (BU)          Seaport Lease and Asset Management 
Effect on business performance  Based on an estimated asset life of 20 year, the
(see note * below)            stormwater project will increase depreciation by $400K
per year and will reduce Net Operating Income by a
corresponding amount. 
IRR/NPV (see note * below)     NPV is the present value of the project cost.
Note *: The financial analysis of the overall T-46 Development program is included in the April 9, 2013, 
Commission Memo. 
Lifecycle Cost and Savings 
The design team evaluated 14 combined conveyance and treatment alternatives, performed infield
pilot testing of two preferred treatment technologies, and bench-scale testing of a third. The
selected treatment system is based on the following: 
Underground installation, reducing facility operational impacts by maximizing the best
use of the limited available waterfront space at T-46 and limiting extent of existing
drainage system retrofits required. 
Can be operated by gravity negating the requirement for pumping and significant power
upgrades required under all other alternatives considered. Ongoing pumping of
stormwater would not be required for the Up-Flo system, minimizing both construction
costs and the carbon footprint of the treatment approach. 
Filter media is non-proprietary affording the Port the flexibility to test various different
types of filtration media as necessary to identify and implement the most appropriate
media mix for facility-specific discharge quality. This flexibility is particularly important
for Port facilities where the commodities handled and resultant runoff water quality
characteristics can be expected to vary based on economic and market influences. 
Lowest cost compared to other evaluated treatment systems. 

STRATEGIES AND OBJECTIVES 
This project meets a Port lease obligation and will support our Century Agenda Strategic
Objective to grow Seaport annual container volume to more than 3.5 million TEUs (twenty-foot
equivalent units).

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
January 27, 2014 
Page 5 of 6 
TRIPLE BOTTOM LINE 
Economic Development 
Maintaining Terminal 46 as an operating container terminal is key to the Port meeting its
Century Agenda strategies of increasing container volume in Seattle to 3.5 million TEUs and
doubling the value of exports from Seattle. 
Environmental Responsibility 
This project will provide the opportunity to apply environmental sustainability principles
associated with the new improvements, including: 
Practices to avoid and minimize potential negative environmental effects; 
Upgrading the drainage system to better manage stormwater; 
Improvements aimed to balance one-time capital improvement and annual maintenance and
operational costs. 
Community Benefits 
The Office  of Social Responsibility will coordinate with the project manager and the
procurement departments to determine opportunities for small business participation in support
of Resolution No. 3618. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Do nothing.  The Port of Seattle is obligated to construct a stormwater
treatment system that meets  current stormwater standards  in conjunction with Lessee's
implementation of operational best management practices. Cancellation of the project work
would violate the terms of the lease amendment. This is not the recommended alternative. 
Alternative 2)  Delay the construction to future years. TTI is subjected to a maximum fine of
$27,500 per day if a treatment system is not installed and operational at T-46 by September 30,
2014, to meet Industrial Stormwater General Permit (ISGP) Level 3 corrective action. This is not
the recommended alternative. 
Alternative 3)  Proceed with construction of stormwater treatment systems. This alternative
allows TTI to comply with Ecology Administrative Order and allows the Port to comply with its
lease obligation. This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
Diagram of Terminal 46 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
December 11, 2012  Commission approved execution of the 13th Amendment to the
lease for Terminal 46 with Total Terminals, Inc.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
January 27, 2014 
Page 6 of 6 
April 9, 2013  Commission approved permitting, design, and project management
funding for improvements committed as part of the lease amendment at Terminal 46.