PORT OF SEATTLE 
MEMORANDUM 

COMMISSION AGENDA             Item No.     6i 
Date of Meeting   June 2, 2009 
DATE:    April 30, 2009 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Rod Jackson, Capital Project Manager 
SUBJECT:  Terminal 91 W-40 Building Demolition Project. 
ACTION REQUESTED 
1.  Request Port Commission approval to increase the authorized budget by $165,000 for
a new total authorization of $1,026,000 to cover additional project cost. 
2.  Request for authorization to expand the existing project scope to include a new
forklift ramp at the south east portion of the W-40. 
SYNOPSIS 
Because of unforeseen building conditions and operational concerns, project costs have
exceeded the authorization. Additionally the need to re-establish the forklift ramp on the
southeast corner of the building has been defined. 
BACKGROUND 
Demolition for the Terminal 91 (T91) W-40 building south bay has been completed.
After final close out and punch list discussions with the current tenant CityIce, it was
determined a new forklift ramp was to be installed after the demolition of building W-40
was complete. Because the ramp design was not included within the original scope of the
project, staff is requesting authorization to expand the existing project scope to include a
new (ecology block/ asphalt) forklift ramp at the south east portion of the W-40 building.
To complete the forklift ramp and to close out the project; additional funds are needed to
pay for project costs that exceeded the current project authorization. Staff is unable to
pay outstanding invoices and project costs for the approved $861,000 authorization
because preliminary demolition work performed by in-house labor and others did not
include the sufficient and necessary funding to support the original project scope.
Unforeseen repairs at building W-40 consisted of; valve house repairs, valve house
insulation, water line and air compressor-line piping including increased allocated

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 30, 2009 
Page 2 of 5 
overhead charges which led to higher than expected project costs. Issues that impacted
design and construction cost included; 
Lack of adequate "as-built" drawings. 
Maintaining building operations during construction. 
Maintaining and re-routing building systems including fire alarms, telephones,
sprinklers, electrical power and water. 
Staff is now requesting approval of an additional $165,000 to pay for outstanding project
costs and installation of a new forklift ramp at the south end of the T-91 W-40 building. 
LESSONS LEARNED 
The lessons learned from the T91 Building W40 Modification Project were: 
Utilize the new "Encumbrance Report" developed by the Project Controls Group to
recognize where the current spending is relative to the current project budget. 
When utilizing in-house Engineering, designate only one contact to provide and
supply Project Management with up to date estimates and estimate revisions. 
Complete "Project Definitions" early on "Fast Track" projects. 
Provide additional project contingency for "old buildings and remodels". 
PROJECT DESCRIPTION AND JUSTIFICATION 
Demolition of the south bay of Building W-40 is complete. Expanding on the existing
project scope, this portion of the project will include a new (ecology block/ asphalt)
forklift ramp at the south east portion of the W-40 building to allow continued tenant
access. The objectives of the T91 Building W40 Modification Project were: 
Creating greater traffic ingress and egress capacity for future T91 cruise terminal by
demolishing the southernmost bay of Building W40 and paving the resultant vacant
area prior to start of 2009 cruise season. 
Terminal reconstruction design that is compatible with the Port's long range plan for
T91. 
Minimize project impacts to existing building tenant, terminal operations and
surrounding communities. 
Environmental stewardship, including compliance with environmental storm water 
review and permitting requirements. 
Meet or exceed the Port's financial criteria. 
Meet strategic asset management criteria.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 30, 2009 
Page 3 of 5 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Completed activities 
Asbestos abatement removal 
Utility relocations 
Installation of structural cross-bracing 
Roof connections 
Removed tested and disposed of discovered contaminated soils 
Demolished 6,300 square feet  comprising the south bay of Building W-40 at T91 
Construction and demolition work commenced in September 2008 with the project
completed ahead of schedule in late January 2009.
Future Activities 
Pay additional project expenses due to increased labor and allocated costs during in-
house demolition. 
Construct a new forklift ramp at the south east portion of the W-40 (to be completed
by Port staff). 
With approval and authorization today, the new forklift ramp for W-40 will be
complete in late July 2009. 
STRATEGIC OBJECTIVES: 
This project supports the Port strategy to "Ensure Airport and Seaport Vitality" by
maximizing asset utilization and preserving existing assets. 
BUSINESS PLAN OBJECTIVES: 
Creating greater traffic ingress and egress capacity for future T91 cruise terminal by
demolishing the southernmost bay of Building W40 and paving the resultant vacant
area prior to start of 2009 cruise season. 
Terminal reconstruction design that is compatible with the Port's long range plan for
T91. 
Minimize project impacts to existing building tenant, terminal operations and
surrounding communities.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 30, 2009 
Page 4 of 5 

FINANCIAL ANALYSIS: 
Budget/Authorization Summary 
Approved Budget    Revised Forecast 
Construction                   $502,000        $ 596,000 
Design                      $160,000        $ 228,000 
Construction Management          $ 86,000        $ 118,000 
Environmental Permitting           $ 12,000        $ 37,000 
Project Management             $ 61,000        $ 47,000 
Contingency                  $ 40,000        $ 0 
Total          $861,000        $1,026,000 
Source of funds 
This project was included in the 2009 Plan of Finance under CIP #C800265 in the
amount of $894,000. The incremental $165,000 needed for increased project costs is
available due to anticipated timing delays in other 2009 Draft Plan of Finance committed
projects, such as the purchase of container support yard land.
The source of funds will be the general fund. 
CIP Category      Renewal/Enhancement 
Project Type       Renewal/Enhancement 
Risk adjusted      7.5% 
Discount rate 
Key risk factors      N/A 
Project cost for      $1,026,000 
analysis 
Business Unit (BU)   Seaport Industrial Properties 
Effect on business    The $165,000 increase in project costs will result in an increase
performance       in depreciation expense of approximately $16,000 per year. 
NPV/IRR        The impact of the increase in project costs on NPV and IRR is
shown below.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
April 30, 2009 
Page 5 of 5 

REVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
On September 9, 2008, the Commission approved request for authorization to (1)
authorize additional funds in the amount of $411,000; (2) execute a contract for WP
103901, Terminal 91 Building W-40 partial demolition, (3) enter into professional
services agreements as needed and; (4) approval for an 11 year term lease with
CityIce Cold Storage for Building W-40. 
On June 24, 2008, the Commission approved request for authorization to
complete design, permitting, asbestos abatement, in-house demolition and advertise
for outside construction demolition of approximately 6,300 square feet of warehouse
including paving of the area and possible modification of perimeter fencing; and enter
into professional service agreement for services as needed, authorize additional funds
in the amount of $250,000, for a total authorization of $450,000. 
On March 25, 2008, the Commission approved request for authorization to
negotiate lease with CityIce Cold Storage and approve funds for design and
permitting.