PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      5a 
ACTION ITEM             Date of Meeting   November 6, 2012 

DATE:    October 29, 2012 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Scott Pattison, Seaport Asset Manager 
Curtis Stahlecker, Capital Project Manager 
SUBJECT:  Terminal 46 Dock Rehabilitation Project 
Amount of This Request:  $1,797,000       Source of Funds: General Fund
Est. Total Project Cost: $24,064,000         Est. State and Local Taxes: $1,780,000 

ACTION REQUESTED:
Request Commission authorization for the Chief Executive Officer to direct staff to develop
design documents, apply for permits, and prepare construction documents as part of the Terminal
46 (T-46) Dock Rehabilitation project for an estimated cost of $1,797,000, bringing the total
authorized cost of this project to $1,854,000. The total project cost is estimated at $24,064,000.
SYNOPSIS:
This memo requests Commission approval for permitting, design, and project management
funding in the amount of $1,797,000 for the proposed T-46 Dock Rehabilitation project.
Improvements are limited to the two main container berths (approximately 2,440 lineal feet) at
T-46. The project would rehabilitate container berth pile caps and deck panels that have
deteriorated with the passage of time by removing corrosive concrete, repairing rebar and
recasting with new cement "grout." Completion of this project is expected to preserve the
existing use and capacity of the two containership berths at the T-46 dock, which is a lease
obligation under the current operating agreement with Total Terminals International. Work will
be coordinated with the tenant and performed in stages to minimize disruption to terminal
operations. This project at T-46 was not included in the 2012 capital budget, however generally
replaces similar work budgeted at T-18 that is being deferred. The funding is included in the
proposed 2013 draft Plan of Finance.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 2 of 6 
BACKGROUND: 
In 2011, the Seaport expanded and formalized its Asset Stewardship Program to include detailed
condition surveys of key Seaport assets, including its docks. The 2011 condition survey of the
T-46 dock confirmed and expanded on prior survey findings regarding deterioration of key
elements of the dock, including the berth pile caps and deck panels. Pile caps are beams that are
on top of the piling that tie the piling together into a linear structure; deck panels are placed on
top of the pile caps and create the level deck area of the dock. Included in the Dock System
Condition Assessment Report is information describing the causes of this deterioration and
recommendations for rehabilitation, including when the rehabilitation might best be performed
and its estimated cost. The report also proposes a schedule for ongoing inspections of the dock.
Combined, these steps are designed to ensure the dock remains fully in service over time. 
This project would rehabilitate the dock's deck panels and pile caps at the two main
containership berths at T-46 (approximately 2,440 lineal feet of dock). The project would not
rehabilitate other deteriorated portions of the dock at the northern and southern ends of T-46. 
Rehabilitation of a container terminal Dock System's pile caps and deck panels is an emerging
need  at the Port of Seattle and other ports. In order to better understand the extent of work, the
time it takes to perform the work, and costs, the Port is undertaking a Pilot Pile Cap project (pilot
project) on a sample of four pile caps at T-18 at this time that is expected to be completed by the
end of 2012. The pilot project is expected to expand the Port's understanding of the means to
evaluate the condition and methods to rehabilitate similar pile caps and deck panels in its
portfolio. Experience gained from the pilot project will be used to guide decisions on the design
of the T-46 Dock Rehabilitation project. This will also help guide recommendations for future
inspections and rehabilitation of other Port terminals.
T-46 is fully leased and is actively used for movement of both import and export cargoes
between ships, trucks, and rail. Accordingly, the project will need to be performed in stages to
enable terminal operations to continue with minimum disruption. Coordination with the tenant
will be important to management of the project. 
The project was not anticipated in the 2012 capital budget, but is proposed in the 2013 Draft Plan
of Finance. 
PROJECT JUSTIFICATION: 
The project will rehabilitate approximately 2,440 lineal feet of the T-46 dock by restoring its
structural integrity, extending its remaining life, and thereby preserving existing assets and
revenues.
Project Objectives: 
The following objectives will be used to measure project success and benefits gained.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 3 of 6 
Minimize costs 
Minimize time to complete construction 
Minimize disruptions to tenant operations 
Maximize coordination with related projects 
Maximize extension of design life 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
Scope of work for this authorization is to complete design and permitting tasks and prepare
construction documentation necessary to complete the rehabilitation. Design and permits will be
completed by Port staff. Below is a synopsis of the types of work anticipated at the T -46 dock
by this project: 
Remove deteriorating and corrosive concrete from pile caps and deck panels 
Clean and recoat or replace corroded rebar 
Recast with grout to preserve and extend the life of these assets 
Following design, staff will return to Commission to seek authorization to complete the project,
which may include major construction contracts, work performed by Port crews, and the
purchase of equipment and materials. Port legal staff has determined this work is a Port lease
obligation for all proposed scope elements in the project.
Schedule: 
Construction is targeted to commence in the fourth quarter of 2013 and be completed by early
2016. Schedule milestones are represented below, subject to change depending on permits,
scope changes, and unforeseen schedule delays. 
Start         Finish 
Preliminary Design        August 2012    October 2012 
Design               November 2012  May 2013 
Permits                June 2013      October 2013 
Construction            November 2013  March 2016 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary: 
Total Project 
Previous Authorizations (Seaport Division authorization)                      $57,000 
Current request for authorization                                $1,797,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 4 of 6 
Total Authorizations, including this request                         $1,854,000 
Remaining budget to be authorized (pending design efforts and
$22,210,000 
recommendations from pilot project currently underway) 
Total Estimated Project Cost                            $24,064,000 
Project Cost Breakdown:                      Total
Authorizations   Total Project 
Construction*                                         $15,612,000 
Construction Contingency                                 $3,122,000 
Construction Management                      $178,000     $1,874,000 
Design                                    $749,000       $749,000 
Project Management                         $796,000      $796,000 
Permitting                                   $131,000       $131,000 
State & Local Taxes (estimated)                               $1,780,000 
Total                                   $1,854,000     $24,064,000 
*Construction budget is preliminary and will be adjusted during design based on findings from the Pilot Project. 
Budget Status and Source of Funds: 
2012 Draft Plan of Finance: 
Funds for this project were not specifically included in the 2012 draft Plan of Finance*.
However, funds are available due to amounts included in CIP C800002 Contingency Renewal &
Replace. The cost of this project will be funded from the general fund. Funds are included in
the proposed 2013 draft Plan of Finance. 
Note*: The 2012 operating budget included $500,000 for the Terminal 18 pile cap project design & permitting
costs, which has been deferred in lieu of this Terminal 46 project. 
2013 -2017 Proposed Capital Budget: 
Due to the timing of the completion of the current estimate, only $19,800,000 of the total project
cost of $24,064,000 has been included in the 2013-2017 proposed capital budget. The additional
$4,264,000 estimated to complete this project is available in CIP C800002 Contingency Renewal
& Replace. The cost of this project will be funded from the general fund. 
Financial Analysis and Summary: 
CIP Category     Renewal/Enhancement 
Project Type      Renewal & Replacement 
Risk adjusted
N/A 
discount rate

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 5 of 6 
Key risk factors     Potential cost overruns due to project complexity or expansion of
project scope due to more extensive damage or deterioration than
current condition assessments indicate. 
Project may not be completed by the stated schedule due to
permitting delays or project phasing constraints in order to
accommodate continued tenant operations during construction. 
Project cost for
$24,064,000 
analysis 
Business Unit (BU)  Container Ops 
Effect on business  This project will not generate any incremental revenue. 
performance      Incremental depreciation expense from this project is estimated to be
$1,203,200/year, based on an expected twenty-year asset life. The
allocation of project costs to specific assets will be finalized near the
end of the project, which is estimated to be in March 2016. Net
Operating Income after Depreciation at Terminal 46 will decrease by
the incremental depreciation from this project. 
NOI (in $000's)        2016   2017   2018   2019   2020
NOI             $0    $0    $0    $0    $0
Depreciation        ($902) ($1,203) ($1,203) ($1,203) ($1,203)
NOI After Depreciation   ($902) ($1,203) ($1,203) ($1,203) ($1,203)
IRR/NPV       N/A 
Lifecycle Cost and Savings: 
Extending the useful service life of our existing assets defers eventual replacement costs,
supporting the economic vitality of our operations. 
STRATEGIC OBJECTIVES: 
The project is consistent with Century Agenda goals for job and container volume growth at the
Seaport, and supports Seaport economic vitality by preserving existing jobs and revenues. The
project addresses Port responsibilities under the current terminal lease agreement that is in effect. 
ENVIRONMENTAL SUSTAINABILITY AND COMMUNITY BENEFITS: 
Design and project implementation will include practices to avoid and minimize potential
negative environmental effects. The project will utilize methods, materials, and practices for
effective work while avoiding release of deleterious materials and reducing the potential for
adverse effects to the aquatic environment. 
Timely rehabilitation will preserve the service life of existing infrastructure, and is an
alternative to more environmentally disruptive and resource/materials consumptive large
scale structure removal and replacement.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 6 of 6 
BUSINESS PLAN OBJECTIVES: 
Rehabilitate deteriorating assets to preserve and extend existing uses and revenue streams. 
Preserve remaining life of existing assets. 
Comply with Port responsibilities under the existing terminal lease agreement. 
TRIPLE BOTTOM LINE: 
Extending the useful service life of this existing asset defers eventual replacement for a longer
period of time than would otherwise be possible, especially if run to failure. This action avoids
the major environmental impacts associated with replacement; preserves the port's ability to
generate revenues during construction; and provides security for all of the related jobs necessary
for continued operation. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
1.  Rehabilitate only the most severely distressed areas of the container dock at T-46. This
alternative would leave moderate areas of deterioration unaddressed, allowing it to
proliferate, thereby increasing the total cost of ownership to the Port. This is not the
recommended alternative. 
2.  Defer rehabilitation for up to 10 years. This alternative would result in an expanded scope of
work and increased costs due to estimated acceleration of deterioration. In addition, as dock
conditions worsened, there would be an increased risk of dock loading capacity reduction and
reduced service life. This is not the recommended alternative. 
3.  Rehabilitate moderate and severely distressed areas within 2,440 lineal feet of container dock
at T-46. This is the recommended alternative. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
PowerPoint 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
None