PORT OF SEATTLE 
MEMORANDUM 

COMMISSION AGENDA             Item No.      9a 
Date of Meeting    March 24, 2009 

DATE:    March 6, 2009 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Charles Sheldon, Managing Director, Seaport 
Gary Wallinder, Capital Project Manager, CDD 
SUBJECT:  East Marginal Way Grade Separation Project authorization for funding,
construction, and approval to advertise for construction bids. 
ACTION REQUESTED 
Request for the Port Commission 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.  Authorization of construction and approval to advertise for bids.
SYNOPSIS 
The East Marginal Way (EMW) Grade Separation project proposal was initiated by the
Port of Seattle (Port) in the mid 1990s as a solution to anticipated delays to general traffic
in the vicinity of EMW and Duwamish Avenue south of Spokane Street. At this location,
rail activities associated with increases in containerized shipping, due to the Port's
Terminal 5 (T5) and 18 expansions, are expected to result in unacceptable delays for
general and port truck traffic. The project alleviates these delays by constructing a new
overpass over the existing Burlington Northern Santa Fe Railroad (BNSF) and Union
Pacific (UP) Railroad tracks at Duwamish Avenue (See attached graphic). The project is
an integral component of the Freight Action Strategy (FAST) Corridor, a partnership of
public and private organizations, including the Port of Seattle. 
Staff has completed the permitting, right-of-way, and design processes, and begun
advance construction work, including demolition of existing buildings and utility
relocations. The project is about to meet its next major milestone, advertisement of the
major construction contract(s) related to the bridge structure.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 6, 2009 
Page 2 
Upon completion, the structure will be turned over to the City of Seattle which will be
responsible for all maintenance and operation. 
PROJECT DESCRIPTION AND JUSTIFICATION 
This project consists of a north, east, and south-bound grade separation on Duwamish
Avenue South near the intersection of EMW and South Spokane Street, which will
remove at grade conflicts with existing rail tracks. The project will improve access
among Port terminals, UP and BNSF rail yards, local manufactures, and distribution
warehouses. Area-wide benefits include reduced congestion, more efficient intermodal
transfers, and a positive impact on air quality. 
PROJECT SCOPE OF WORK AND SCHEDULE 
Completed activities 
Developed design and permitting. 
Purchased properties and conducted associated tenant relocations for new right of way. 
Demolish existing improvements in preparation for overpass structure. 
Removed and disposed of discovered contaminated soils. 
Future Activities 
Construct reinforced concrete bridge structure over existing rail tracks. 
Construct associated roadways and utility relocations as required. 
Schedule 
March 31, 2009        Advertise for construction bids 
May 14, 2009         Open bids and review documentation 
June 26, 2009         Notify Commission and award Contract per Resolution 3605 
March 31, 2011        Substantial completion of the Project 
MAJOR CHANGES IN THE PROJECT SINCE THE LAST AUTHORIZATION 
Escalation of project cost estimates due to utility relocation delay, construction cost
inflation, and property value inflation have left an estimated funding shortfall of
$17,200,000.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 6, 2009 
Page 3 

FINANCIAL ANALYSIS 
Budget/Authorization Summary 
Previous Authorizations                                  $ 34,500,000 
Decrease in Project scope                                 ($ 1,000,000) 
Current Authorization request                               $ 17,200,000 
Total Authorization including this request                        $ 50,700,000 
Project Cost Breakdown 
Design, Permit, Salaries and Overhead Costs                     $ 7,500,000 
Right of Way                                        $12,000,000 
Construction including utility relocation and sales tax                 $31,200,000 
Total                                                  $50,700,000 
Source of Funds 
Previous Authorization 
The previous authorization was funded from commitments by federal, state, and local
sources. The federal funds are allocated to this project from direct congressional
appropriation; state funds have been awarded from the Transportation Improvement
Board (TIB) and the Freight Mobility Strategic Investment Board (FMSIB); local fund
sources are the BNSF and UP Railroads, the City of Seattle and the Port of Seattle. The
previous Port cash commitment to the project was $1,600,000.
. 
Review of Project funding package including grants: 
Project Estimate (revised scope)                    $33,500,000 
Funds Committed:                          $28,880,000 
Federal grants                                          $14,660,000 
Transportation Improvement Board                         $7,300,000 
Freight Mobility Strategic Investment Board1                     $6,920,000 
Local FAST contributions:                      $ 4,620,000 
Port of Seattle                                             $1,600,000 
City of Seattle2                                            $1,600,000 
Railroads                                            $1,420,000 
Total Funds Committed                     $33,500,000 
1$6.92 million approved by Legislature in 2005. 
2 Deducted from Port's contribution to the Spokane Street Viaduct Project.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 6, 2009 
Page 4 
Current Request for Authorization 
The request for additional authorization of $17,200,000 would be 100% funded by the 
Port. The 2009 Draft Plan of Finance included approximately $9,000,000 of funds under
Public Expense Projects Fast Corridor I ($5,000,000) and E. Marginal/Spokane
Transportation Hub ($4,000,000) to cover these increased costs. The additional 
$8,200,000 required to fund the balance is available due to anticipated timing delays in
other 2009 Draft Plan of Finance committed projects, such as purchase of container
support yard land. 
The source of funds will be the tax levy. 
Financial Analysis Summary 
CIP Category         Regional Transportation 
Project Type          Freight Mobility 
Risk adjusted Discount   NA 
rate 
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)       Strategic and Facility Planning 
Effect on business       Spending on this project is expensed as incurred, as a non-
performance          operating expense.
IRR/NPV          N/A 
ALTERNATIVES CONSIDERED/RECOMMENDED ACTION 
Two alternatives were considered: 
1.  Cancel the project and reimburse grant agencies for funds that were used for right-ofway
purchase and relocation expenditures estimated at $11,400,000. In addition, the
Port would lose approximately $15 million in State grant funding currently
committed to the project. This action is not recommended. 
2.  Complete the project and construct the facility, to be owned and maintained by City
of Seattle and achieve the freight mobility and environmental enhancements
associated with the Project. 
TRIPLE BOTTOM LINE SUMMARY: 
This project will facilitate the use of on-dock rail at T5 and T18 to preserve revenue for
the Port, with correspondent economic impacts and community benefits due to retention
of skilled jobs.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 6, 2009 
Page 5 

The project will improve the vehicular and rail mobility for Port of Seattle related
commerce as well as other freight activities and the general public. 
Air quality and fuel efficiencies will be improved due to enhanced traffic flow resulting
in less congestion and related idling.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
On April 9, 2002, Commission authorized $1,500,000 for conceptual design
development. 
On December 9, 2003, Commission authorized $1,950,000 for design refinement,
environmental permitting, acquisition planning, and State engineering approvals. 
On April 11, 2006, Project-wide Commission authorization for all remaining project
components, including design, permitting, purchase of right-of-way, and construction,
with a total authorized amount of $34,500,000. 
On January 13, 2009, Commission briefing on current Project status and cost
estimates.