PORT OF SEATTLE 
MEMORANDUM 
REVISED COPY                Item No.      6f 
COMMISSION AGENDA 
ACTION ITEM             Date of Meeting  September 11, 2012 

DATE:    September 7, 2012 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Geri Poor, Manager Regional Transportation 
Gary Wallinder, Capital Project Manager 
SUBJECT:  East Marginal Way Grade Separation Phase I (CIP C001725) 
ARRA Grant Authorization 
Amount of This Request:  $2,875,171       Source of Funds: American Recovery and 
Reinvestment Act (ARRA) Grant 
Est. State and Local Taxes: n/a            Est. Construction Jobs Generated: n/a 
Total Project Cost: $53,575,171 
ACTION REQUESTED: 
Request Commission authorization to increase previous the Project Authorization by the amount
of the American Recovery and Reinvestment Act (ARRA) grant in the amount of $2,875,171
received after Commission authorization on March 24, 2009, resulting in the total project
authorization of $53,575,171. 
SYNOPSIS: 
The East Marginal Way Grade Separation (EMWGS) project was initiated by the Freight Action
Strategy (FAST) Corridor Partnership in the mid-1990s and has been implemented by the Port of
Seattle as a solution to delays to general and freight traffic in the vicinity of East Marginal Way
and Duwamish Avenue south of Spokane Street. Construction of the new overpass has achieved
substantial completion and traffic can now travel over the existing Burlington Northern Santa Fe
(BNSF) and Union Pacific (UP) railroad tracks at Duwamish Avenue. Funding for this project
was received from federal, state, local, railroad and Port of Seattle sources which are reviewed in
the financial implications section of this memo. This memo seeks to authorize the funds from
the ARRA which were received after the construction bid and contractor selection process were
concluded. Due to uncertainties regarding final cost, the Project Authorization amount was not
changed to include the ARRA amount until this Commission request.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
Revised September 7, 2012 
Page 2 of 4 
BACKGROUND: 
The FAST Corridor partnership was established to support Port operations on highways and rail
lines that sustain maritime international trade along the freight corridor from Tacoma to Everett. 
The Port of Seattle has been a partner since FAST's inception and has contributed or committed
over $40,000,000 to various projects in the corridor.
PROJECT JUSTIFICATION: 
The Project consists of a grade separation on Duwamish Avenue South near the intersection of
East Marginal Way and South Spokane Street. As part of a system of traffic improvements, the
project removes at grade conflicts with the existing Burlington Northern Santa Fe and Union
Pacific rail road tracks that serve Harbor Island and West Seattle as well as Port of Seattle
Terminals 5 and 18. 
Project Objectives: 
Enhance the vehicular traffic flow and safety of the public and freight handling businesses.
Assure the continued viability of Port investments in containerized shipments consistent with
the Port's Century Agenda. 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
No work is scoped with this request. 
FINANCIAL IMPLICATIONS: 
Review of EMWGS Previous           Capital     Non-Operating   Total Project 
Authorization and ARRA grant                     Expense 
Summary: 
Previous Authorization                   $0          $50,700,000     $50,700,000 
American Recovery and Assistance Act       $0         $ 2,875,171     $ 2,875,171 
Interest received on NHS grant                           $11,000        $11,000 
Total Authorization                     $0          $53,586,171     $53,586,171 
Project Cost breakdown               March 6, 2009   August 15, 2012 
Estimate         Actuals 
Design, Permit, Salaries and Overhead Costs      $ 7,500,000        $ 7,496,000 
Right of Way                          $12,000,000       $12,058,000 
Construction, Utility Relocation, CM            $31,200,000        $33,532,171 
Completion estimate                                     $ 500,000 
Total                                 $50,700,000        $53,586,171

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
Revised September 7, 2012 
Page 3 of 4 
Budget Status and Source of Funds: 
The request for additional authorization of $2,875,171 has been and will be funded by the
American Recovery and Reinvestment Act (ARRA) grant received after the project was bid. 
Source of Funds: 
Fund               Amount 
ISTEA (Reg.)                        $ 2,500,000 
TEA-21 (B&C)                    $ 5,400,000 
TEA-21 (STP)                      $ 3,000,000 
TEA-21 (Hi Pri)                       $ 1,847,000 
TEA-21 (Reg.)                       $ 1,667,000 
TEA-21 (NHS)                     $ 247,000 
ARRA                     $ 2,875,171 
Transportation Improvement Board (City)       $ 7,300,000 
FMSIB                       $ 6,920,000 
Port of Seattle                            $18,800,000 
City of Seattle                            $ 1,600,000 
BNSF                       $ 950,000 
UPRR                      $ 480,000 
TOTAL                   $53,586,171 
Financial Analysis and Summary: 
CIP Category             Regional Transportation 
Project Type              Freight Mobility 
Risk adjusted discount rate     NA 
Key risk factors             As the lead agency for this project, Port of Seattle will
continue to be responsible for cost overruns. 
Project cost for analysis        NA 
Business Unit (BU)          Seaport Containers 
Effect on business performance  ARRA Grant was recorded as non-operating revenue in
2010. 
Spending on this project was and is expensed as
incurred, as a non-operating expense. 
IRR/NPV             NA 
STRATEGIC OBJECTIVES: 
This Project is consistent with the Port's Century Agenda.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
Revised September 7, 2012 
Page 4 of 4 
ENVIRONMENTAL SUSTAINABILITY: 
Not Applicable 
BUSINESS PLAN OBJECTIVES: 
Improve vehicle and freight mobility to assure viability of container terminal operations and
reduce emissions from vehicle idling. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
1.  Keep authorization at current level ($50,700,000) and risk ability to close out project. 
2.  Adjust authorization to include additional Port funds in the amount of $2,875,171. This
alternative supports the FAST corridor. 
3.  Adjust authorization to include the ARRA funds in the amount of $2,875,171. This
alternative supports the FAST Corridor and assures audit clarity. This is the recommended
action. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
July 14, 1998 -- Commission approved Resolution No. 3283, to authorize participation in the
FAST Corridor 
April 9, 2002 -- Commission authorization for East Marginal Way Grade Separation
conceptual design development 
December 9, 2003 -- Commission authorization for design refinement 
April 11, 2006 -- Commission authorization for project wide elements for a total of
$34,500,000 
January 13, 2009 -- Commission Project update 
March 24, 2009 -- Commission authorization to (1) increase previous Project Authorization by
the amount of $17,200,000 resulting in a total Project Authorization of $50,700,000, and (2)
advertise for bids for a total of $50,700,000 
November 30, 2009  Commission approved agreement for early termination of Clear
Channel Outdoor, Inc.'s leaseholds and settlement of any claims related to the removal of
certain signs on Port-owned property acquired for EMWGS project 
May 11, 2010  Commission authorization for a Purchase and Sale agreement between Port
of Seattle and Ash Grove Cement Company for a portion of Ash Grove's real property 
May 18, 2010  Commission authorization of a change order for a not-to-exceed amount of
$430,000 
December 13, 2011  Commission authorization of Argo Yard Roadway Memorandum of
Understanding (MOU)