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

DATE:    October 29, 2012 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Mike McLaughlin, Director, Cruise & Maritime Operations 
Nick Milos, Pier 69 Facility Manager 
Fred Chou, Project Manager, Seaport Project Management 
Catherine Chu, Project Manager, Seaport Project Management 
SUBJECT: Authorization for Construction - Pier 66 Apron Pile-Wrap Project (CIP
#C800516) and P69 North Apron Corrosion Control Project (CIP #C800313) 
Pier 66           Pier 69 
Amount of This Request:            $2,843,000        $4,800,000 
Source of Funds                  General Fund        Tax Levy 
Estimated State and Local Taxes        $182,000         $386,000 
Estimated Jobs Created                28             48 
Estimated Total Project Cost          $3,010,000        $5,100,000 
ACTION REQUESTED: 
Request Port Commission authorization for the Chief Executive Officer to: (1) advertise for
construction bids, execute construction contracts, and fund the construction phase to complete
the Pier 66 Apron Pile-Wrap Project in an amount not to exceed $2,843,000 of a total estimated
project cost of $3,010,000; and (2) advertise for construction bids, execute construction
contracts, and fund the construction phase to complete the Pier 69 North Apron Corrosion
Control Project in an amount not to exceed $4,800,000 of a total estimated project cost of
$5,100,000. The total amount requested for both projects is $7,643,000 and the total cost of both 
projects is $8,110,000. 
SYNOPSIS: 
This request combines construction for two separate but similar construction projects into one
construction contract to reduce total construction costs to the Port. One project is at Pier 69
while the other project is located nearby, at Pier 66. The projects have previously been managed
and authorized separately. Pier 69 was constructed in 1991; this project involves corrosion
protection of its steel piling and related structures on the north apron. Pier 66/Bell Harbor was
built in 1995 as part of the Central Waterfront Project; this project also involves corrosion

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 2 of 7 
protection of steel piling and related structures. Recent inspections revealed the protective 
coatings have reached the end of their service lives and oxidation/rusting of varying degrees is
clearly visible. If left alone, continued corrosion will distress the structures resulting in more
costly structural repairs or replacements in the future.
On February 28, 2012, the Port Commission in separate actions, authorized funding for design
and permitting of $300,000 for the Pier 69 Corrosion Control Project and $167,000 for the Pier
66 Apron Pile-Wrap Project. During the design phases, staff determined that, due to the close
proximity of the sites and similar nature of work, cost savings could be achieved by combining
the construction efforts into a single construction contract. Although construction will be bid
and managed under one competitively bid contract, the work at each facility will be treated as 
separate projects.
With the final design complete and permits in hand, staff requests Commission approval to
proceed with the construction phase of the projects. This includes advertising for construction
bids, execution of a major construction contract, and other work necessary to complete the
projects. The funds requested reflect the information gathered during the final design phase of
the project. 
PROJECT JUSTIFICATION: 
The proposed projects would preserve important assets at Pier 66 and Pier 69. Authorization to
proceed with these projects will extend the lives of the pier structures. Deferring or foregoing
this work would allow continued corrosion of these structural steel components. Eventually, this
would lead to increased risk of failure, detrimental impacts to operations, and the need for more 
costly replacements. Maintaining proactive asset stewardship is key to reducing the total cost of
ownership to the Port over time. 
Project Objectives: 
Preserve the structural integrity of the pier structures 
Complete project on time and within budget 
Protect the environment while performing the work 
Minimize disruptions to facility operations 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
The scope of work for Pier 66 Apron Pile-Wrap Project at the Seaport's Pier 66/Bell Harbor
cruise facility includes: 
Construction of a pile-wrap system for the section of steel piling between inter-tidal
elevations and the top of piling, and 
Replacement of a protective epoxy coating at the connections on top of the steel piles.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 3 of 7 
The scope of work for the Pier 69 North Apron Corrosion Control Project includes: 
Installation of a cathodic protection system for the submerged portions of the steel piling; 
Construction of a pile wrap system for the section of steel piling between inter-tidal
elevations and the top of piling; and 
Application of a protective epoxy coating system for the pile caps, steel beams, and other
steel structure above the inter-tidal elevations.
Schedule: 
The two projects will be closely coordinated and bid out as one major construction contract. The
current project schedules are as follows: 
Commission Approval for Design        February 2012 
Permit/Design Complete              October 2012 
Commission Approval for Construction    November 2012 
Advertise for Bids                   November 2012 
Construction                      Pier 66 work: March 2013  March 2014 
Pier 69 work: March 2013  Dec 2013 

FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary: 
Pier 66          Pier 69 
Previous Authorizations                    $167,000          $300,000 
Current request for authorization              $2,843,000         $4,800,000 
Total Authorizations, including this request       $3,010,000         $5,100,000 
Remaining budget to be authorized                 $0              $0 
Total Estimated Project Cost             $3,010,000        $5,100,000 
Project Cost Breakdown: 
Pier 66           Pier 69 
Construction                           $2,395,000         $4,063,000 
Construction Management                 $138,000         $244,000 
Design                               $161,000          $223,000 
Project Management                      $70,000        $103,000 
Permitting                               $24,000           $81,000 
State & Local Taxes                      $222,000          $386,000 
Total                              $3,010,000*        $5,100,000* 
*The current $3,010,000 and $5,100,000 total project costs have increased from the $2,378,000 and
$3,966,000 total estimated project costs at the time of design funding authorization request (February 28,
2012). The main cause is that during design, it was determined that to fully protect the piles, the pile-

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 4 of 7 
wraps need to be extended further down in the inter-tidal zone which requires additional materials and
working in more challenging conditions. At Pier 69 north apron, there is also increased cost related to
coating of steel pile caps and beams.
Budget Status and Source of Funds: 
Pier 66 Apron Pile-Wrap Project 
This project was included in the 2012 Plan of Finance under CIP #C800516, Pier 66 Apron Pile-
Wrap Project in the amount of 2,378,000. This project is currently included in the proposed
2013 Plan of Finance in the amount of $2,950,000. This project will be funded by the general
fund. 
P69 North Apron Corrosion Control Project 
This project was included in the 2012 Plan of Finance under CIP #C800313, P69 North Apron
Corrosion Control Project. This project is currently included in the proposed 2013 Plan of
Finance in the amount of $6,429,000. This project will be funded by the t ax levy.
Financial Analysis and Summary:
Applies to both Pier 66 Apron Pile-Wrap and the P69 North Apron Corrosion Control
projects: 
CIP Category        Renewal/Enhancement 
Project Type         Renewal/Replacement 
Risk adjusted discount  N/A 
rate 
Key risk factors        Key risk factors include permitting delays and potential cost overruns due
to project complexity/timeframe. 
The work window available to the contractor will be greatly
influenced by tides. Production rates could vary significantly due to
perception of risks and available crew size. 
Installation of pile wraps at the -2 elevation may involve use of divers.
Bids may vary if contractors have different interpretation on how
much diver involvement is required.
Pier 66 Apron Pile-Wrap Project 
Project cost for analysis  $3,010,000 for Pier 66 
Business Unit (BU)     Seaport - Cruise Services

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 5 of 7 
Effect on business      This project will not generate any incremental revenue. 
performance  Seaport
Incremental depreciation expense from this project is estimated to be
Division 
$200,666/year, based on a fifteen-year asset life. The allocation of actual
project costs to specific assets will be finalized near the end of the project,
estimated to be March 2014. Net Operating Income after Depreciation for
the Pier 66 facility will decrease by the associated incremental
depreciation from this project. 
NOI (in $000's)       2013   2014   2015   2016   2017
NOI             $0    $0    $0    $0    $0
Depreciation          $0   ($151)  ($201)  ($201)  ($201)
NOI After Depreciation     $0   ($151)  ($201)  ($201)  ($201)
IRR/NPV         N/A 
P69 North Apron Corrosion Control Project 
Project cost for analysis  $5,100,000 for Pier 69 
Business Unit (BU)     Real Estate  Pier 69 Facilities Management 
Effect on business      This project will not generate any incremental revenue. 
performance  Real
Incremental depreciation expense from this project is estimated to be
Estate Division 
$340,000/year, based on a fifteen-year asset life. The allocation of actual
project costs to specific assets will be finalized near the end of the project,
estimated to be December 2013. Net Operating Income after Depreciation
for the Pier 69 facility will decrease by the associated incremental
depreciation from this project. 
NOI (in $000's)       2013   2014   2015   2016   2017
NOI             $0    $0    $0    $0    $0
Depreciation          $0   ($340)  ($340)  ($340)  ($340)
NOI After Depreciation     $0   ($340)  ($340)  ($340)  ($340)
IRR/NPV         N/A 
Lifecycle Cost and Savings: 
Annual Operating and Maintenance costs are forecasted to decrease for the P66 Apron Pile-Wrap
Project but will remain approximately the same for the P69 North Apron Corrosion Protection
Project. 
STRATEGIC OBJECTIVES: 
The proposed projects support the Port's strategy to "Ensure Airport and Seaport Vitality" by
maintaining and preserving vital assets.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 6 of 7 
ENVIRONMENTAL SUSTAINABILITY: 
Construction implementation will include practices to avoid and minimize potential negative
environmental effects. The projects have identified construction and maintenance methods,
materials, and practices for effective under-pier work while avoiding release of deleterious
materials to the environment and reducing the potential for adverse effects on aquatic area
natural resource values. Timely asset preservation extends the service life of existing
infrastructure, as an alternative for avoiding more environmentally disruptive and
resource/materials consumptive large scale structure replacement actions.
BUSINESS PLAN OBJECTIVES: 
Proceeding with the projects will help preserve the integrity of the Pier 66 and Pier 69 structures
and allow continued operations at these facilities.
TRIPLE BOTTOM LINE SUMMARY: 
Preserving existing assets defers high-impact and high-cost asset replacement, and therefore
reduces environmental impact and supports the economic vitality by reducing Port costs and
generating construction jobs. The proposed construction methods will have minimal noise and
traffic impact to the surrounding communities.
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1: Do nothing. This alternative would allow corrosion to spread, causing distress to
critical structural support systems resulting in more costly work in the future. Once corrosion
begins to occur, structural capacity could deteriorate quickly to the point that replacement would
be required. Replacement of critical steel piling, pile caps, and beams for the Pier 66 and Pier 69
north apron structures could costs tens of millions of dollars, and cause significant environmental
and operational impact. This alternative is not recommended. 
Alternative 2: Install a new epoxy-based coating system at Pier 66 and Pier 69. Recoating
coated piling in the tidal zone is not recommended since the work is not done in a controlled
environment, which reduces effectiveness and durability. This alternative is not recommended. 
Alternative 3: Proceed with the two discrete projects as described at Piers 66 and 69 to minimize
total cost of ownership to the Port. This alternative is recommended for implementation.
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
PowerPoint Slides

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 7 of 7 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
On February 28, 2012, the Port Commission approved $200,000 design and permitting phase
funding for the Pier 69 North Apron Corrosion Control Project (CIP #C800313) for a total
authorization of $300,000. 
On February 28, 2012, the Port Commission approved $135,000 design and permitting phase
funding for the Pier 66 Apron Pile Wrap Project (CIP #C800516) for total authorization of
$167,000.