PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA 
Item No.        10a 
Date of Meeting     February 3, 2009 

DATE:    January 22, 2009 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Lindsay Pulsifer, General Manager, Marine Maintenance 
SUBJECT:  Authorization for design, asbestos abatement, and construction totaling
$425,000 for the replacement of the windows at the Fishermen's Terminal West Wall
Building.
ACTION REQUESTED:
Request for authorization for the Chief Executive Officer to design, purchase, perform
asbestos abatement and installation to replace the existing windows at the West Wall
Building with new energy efficient windows, and ratification of expenses already
incurred. 
SYNOPSIS: 
The Real Estate Division requests approval to complete design, procure 182 new vinyl
windows, remove the existing single pane windows, abate the asbestos and lead paint in
the old window glazing and paint, and to install new energy efficient vinyl double paned
windows. These windows are original to the 1954 building and are in poor condition.
Marine Maintenance crews will self-perform the installation and a Small Works contract
will be bid to do the demolition and asbestos abatement. The funding for the design,
procurement, and installation was included in the Marine Maintenance Operations
Expense budget. Funding of the regulated materials will be from the Environmental
Reserves. Due to misunderstanding of notification requirements, $141,000 has already 
been spent. 
PROJECT DESCRIPTION AND JUSTIFICATION: 
Background:
Building C-3 (West Wall Building) at Fishermen's Terminal, an office building 
constructed in 1954, has the original single pane exterior windows. The windows were
installed using glazing that has been tested to contain up to 40% chrysolite (white
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asbestos) and the trim paint has tested positive for lead. Over the years, the glazing has
become brittle and is falling out from around the windows onto the ground below.
Asbestos on the ground can contaminate the soil and vegetation in the area and
potentially anyone who comes in contact with it. Once the glazing falls out, the windows
no longer have a weather-tight seal. They rattle and leak and water damage to the walls
and wood surrounding the windows has occurred in some locations. In order to replace
the windows, the asbestos must be abated as they are removed. 
Originally, this project was budgeted for $350K in the 2008 operations budget as expense
work. In March of 2008, the Maintenance Shop was asked to adjust the operations
budget to help pay for the audit costs and the decision was made to push out  of the
budget for the West Wall Window Replacement to 2009. Design, environmental 
permitting, and procurement of the windows occurred in 2008 using the Marine
Maintenance Operations Expense budget. At that time, Marine Maintenance staff
understood (or misunderstood) that the project was included in the approved Operation's
Expense budget and that we were authorized to spend the budgeted amount. Based on
the newly completed Resolution 3605 and the Delegation Matrix, we now understand that
we need to bring this before the Commission to obtain additional authorization to spend
the remaining authorized budget and to document the spending that has already taken
place.
The total project cost is currently estimated to be $425,000. During the course of the
preliminary work, Maintenance crews found that the windows were not a quick "in and
out" replacement. Modifications to the window framing will be needed and additional
contingency was added because crews found water damage in the framing of the test case
windows. The abatement costs also increased because we determined that the project
duration would most probably be longer due to the complexity of removing and replacing
the windows. 
Project Statement: 
Design, purchase, abate, and replace all of the windows at the West Wall Building at
Fisherman's Terminal for $425,000 by June 1, 2009. 
Project Objectives 
Retain revenue from the tenants 
Meet tenants schedules and needs 
Incorporate environmental improvements 
Maintain asset value 
Comply with all permitting requirements 
Complete the project on budget and within the proposed schedule 
Comply with environmental requirements 
Minimal impact to tenant operations 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of work: 
The entire project consists of architectural design, permitting, the purchase and
installation of 182 exterior windows, asbestos and lead paint abatement, and project and
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construction management. The abatement and disposal will be contracted out using the
small works bidding process and performed by a certified asbestos abatement contractor
under the supervision of Port Construction Services. The installation of the new windows
and trim as well as repairs due to water damage will be "self-performed" by Marine
Maintenance carpenters and laborers. Using Port of Seattle Maintenance crews for the
construction portion of this project was deemed the most cost effective method for
getting the work completed. 
Schedule: 
Design                        August 2008-November 2008 
Permitting                        August 2009-January 2009 
Purchase Windows                 October 2008-December 2008 
Commission Authorization             February 2009 
Demo and Installation                 April 2009-May 2009
Project Closeout                     May 2009 - July 2009 
STRATEGIC OBJECTIVES: 
Ensure Airport and Seaport Vitality 
The project supports the business strategies to "Ensure Airport and Seaport Vitality" by
maintaining a valuable asset of the Port and ensuring continued revenue from existing
tenants and additional revenue from a new tenant. It also supports the Port's continued
commitment to the Fishing Industry because a majority of the tenants (70%) are in the
fishing or maritime industry and provide support for the commercial fishing fleet.
Exhibit Environmental Stewardship through our Actions 
The project supports the Port's commitment to the environment by reducing the amount
of asbestos that is released into the environment and disposing of the asbestos containing
materials properly. The new windows will improve the insulating qualities, reduce solar
heat gain, and reduce energy required for heating and air conditioning.BUSINESS
PLAN OBJECTIVES: 
This project furthers the Port's ability to continue to lease a building that has been
consistently leased (95% occupancy for the past 7 years) with rental rates at market for a
Class C building.
FINANCIAL ANALYSIS: 
Budget/Authorization Summary 
Previous Spending in 2008                            $123,533 
Previous Spending in 2009                            $17,467 
Total Previous Spending                             $141,000 
Current request for authorization                          $425,000 
Total Authorizations, including this request                   $425,000 
Remaining budget to be authorized                           $0 


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Project Cost Breakdown 
Construction Costs: Abatement                         $118,000 
Construction Costs: Installation                         $145,000 
Materials: Windows and Lumber                         $96,000 
Sales Tax                                        $17,000 
Design/Planning                                   $7,000 
Other (Environmental, permits, planning)                    $10,000 
Project Management, Admin, Allocated Overhead,
Contingencies                                    $32,000 
Total                                            $425,000 
Source of Funds: 
The $123,533 spent on the West Wall Building Window Replacement Project in 2008
was included in the 2008 Operating Budget. The remaining costs to be spent in 2009, in
the amount of $301,467, are covered in the 2009 Operating Budget as follows: 
$175,000 as a specifically identified item in the deferred maintenance budget 
$8,467 in the unassigned portion of the deferred maintenance budget 
$118,000 for asbestos abatement included in Environmental Reserve expense as per
GASB 49
The source of funds for the project has been and will be the General Fund except for the
asbestos abatement portion of the costs which will be funded from the Tax Levy as part
of the Environmental Reserve. 
Financial Analysis Summary 
CIP Category            Renewal/Enhancement 
Project Type             Renewal and Replacement 
Risk adjusted Discount rate    N/A 
Key risk factors            1) Scheduling the window replacement with tenants could result in
delayed timing of the project.
2) Construction costs may increase if required work is more extensive
than currently known. 
Project cost for analysis       $425,000 
Business Unit (BU)         Portfolio Management  Fishermen's Terminal Uplands 
Effect on business         This is a renewal and replacement project and, accordingly, this project
performance             preserves Revenue and Net Operating Income (NOI). Revenue from the
West Wall Building is currently about $190,000 per year with NOI
estimated at approximately $150,000 per year excluding any other major
maintenance expenses 
As a result of this project, Operating Expenses were higher by $123,533
in 2008 and will be higher by $301,467 in 2009. 
IRR/NPV                Financial analysis  based on preserving Net Operating Income 
(proxy for cashflow): 
NPV    IRR  Payback
(in $000's)          (in years)
$825      NM     3

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SUSTAINABILITY AND LIFE CYCLE COSTS: 
The maintenance costs for the past three years have been: 
o  2006: $43,639 
o  2007: $31,222 
o  2008: $52,697 (includes painting the exterior of the building but does not
include the costs associated with this Window Replacement Project.) 
Maintenance will continue to be a cost for this building, but many of the
higher cost maintenance items have been addressed. The roof is only 7 years
old and the building has been painted (inside and out) in the past three years. 
The windows at the West Wall Building are single pane windows that are well
beyond the end of their useful life. Installing new, energy efficient double paned
windows will prevent water damage from leaky windows and preserve and
maintain the asset.
The West Wall Building has been well maintained, is in good condition, and the
expectation is that it will continue to be a viable, revenue producing asset for the
next 10-15 years.
Remediation of the asbestos in the window glazing reduces the Port's risk. 

ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1: Do nothing 
Under this alternative no improvements or upgrades are made to the existing window
systems. The glazing will continue to deteriorate, operational and maintenance costs will
continue to rise; the windows will continue to leak and rattle and could possibly fall out. 
This alternative is not recommended. 
Alternative 2: Tear down the building and replace it with a parking lot. 
This alternative was looked at because the building is one of several older buildings that
the Port owns and, at some point, the continued viability of the building must be
considered. The determination was made that, while this building is over 50 years old, it
still maintains a positive cash-flow and is expected to remain usable for the next 10-15
years. 
This alternative is not recommended 
Alternative 3: Replace the exterior windows in the C-3 Building 
The asbestos containing glazing will be completely removed and properly disposed of
and new vinyl double pane, argon filled low-e windows will be installed. Heating and air
conditioning costs will be lowered and the outside noise level will be lowered. 
This is the recommended alternative. 
OTHER INFORMATION: 
The Port has an ongoing commitment to the Fishing Industry at Fisherman's Terminal.
The continued operation and maintenance of this facility offers the opportunity for
businesses that directly or indirectly support the fisherman and the industry to maintain
close proximity to the clientele in a reasonably priced office. 

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We have applied to Puget Sound Energy for a grant based on the calculated energy
savings but have not received confirmation on whether the grant request will be
approved.

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
This project has been mentioned in previous Commission meetings as an example of the
kinds of maintenance that has been deferred over the last several years but no formal
actions or briefings were done. 















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