PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA                   Item No.         6c 
Date of Meeting       April 6, 2010 

DATE:      February 24, 2010 
TO:       Tay Yoshitani, Chief Executive Officer 
FROM:     Michael Burke, Director, Cargo and Container Operations 
Ticson Mach, Capital Project Manager 
SUBJECT:   Fender system repairs at Terminal 18 
Amount of This Request:   $143,000           Source of Funds: General Fund 
Total Project Amount:   $965,000 
ACTION REQUESTED:
Request authorization for the Chief Executive Officer to prepare design and permit applications
for the repair of the damaged fender system at Terminal 18 in the amount of $143,000, for a total
authorization to date of $273,000, and a total estimated (pre-design) project cost of $965,000. 
SYNOPSIS:
The project consists of repair and replacement of the fender piles and supporting members at
Terminal 18. The fender system is designed to protect the main apron structure of the dock from
the initial impact made by a berthing barge/vessel. The fender system for this portion of
Terminal 18 was replaced in 2003/2004, but, in January 2009, it was found to have a latent
defect which exposes the apron structure to possible damage during normal berthing activities.
This project was not included in the 2010 Operating Budget because it had not been identified as
a Port obligation when the 2010 Budget was prepared. The costs incurred in 2010 will result in
an unfavorable operating expense variance which the Seaport will strive to offset with other
savings. The cost of the work to be performed in 2011 will be included in the proposed 2011
Operating Budget. The preliminary estimated (pre-design) cost of the project is $965,000. 
PROJECT DESCRIPTION AND JUSTIFICATION: 
The project is located within bent 62 to 162 (approximate footmark 2900 to 4900) at Terminal 18
along the waterside of the concrete apron. The timber fender system is designed to absorb the
initial impact from a berthing vessel/barge to protect the main apron structure. Periodic repair
and replacement of fender piles is typical during the life of the system. The scope of work
consists of repair and replacement of approximately 14 percent of the fender piles and their

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 24, 2010 
Page 2 of 5 
supporting members. The preliminary cost estimate for the project is $965,000. It is projected to
be completed in 2011. 
The fender system for this portion of the Terminal 18 dock was replaced by the port as part of
the berth deepening project in 2003/2004. This deepening to -50 feet was an obligation of the
port per the Terminal 18 lease. 
The fender system damages were first discovered in January 2009 during the Terminal 18
Maintenance Dredging Project. Port Engineering conducted a detailed inspection of the damages
in August 2009, and concluded that the damages may be attributed to a combination of design, 
construction and operational issues as described in the following: 
1)  Excessive notching at the back of fender piles. 
2)  Restricted movement between the timber walkway and the concrete bullrail. 
3)  Fender piles out of alignment.
4) Excessive vessel or barge berthing force.
The broken fender piles created a void in the fender system. With barges or small vessels
berthing at an angle, the front corners of the barges or vessels could reach and hit the
structural/bearing concrete piles. Split piles will also have less fendering capacity in keeping the
vessels from going underneath the dock. The apron structure is exposed to possible damage with
ongoing berthing activities. Staff therefore recommends proceeding with the work immediately.
The Design Errors and Omissions Team will evaluate and determine contractual responsibilities
of the parties involved. 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Based on the Engineering inspection, three levels of repair effort are recommended, and the
project scope includes: 
Trimming of the pile supporting members to allow sufficient movement between the timber
walkway and the concrete bullrail. 
Install steel bands on piles with minor splitting to prevent or delay further splitting. 
Prepare engineering design, permits, cost estimate, schedule, and construction documents for
the replacement of the broken fender piles. An existing Docks IDIQ contract will be utilized 
for these services. 
In an effort to minimize further fender pile damages, the trimming of the supporting members is
completed and steel bands installation is in progress.
The pile banding work will require additional inspection to observe the effectiveness of the
repair. Engineering anticipates to see more split (weakened) piles broken off, and needing
replacement over the continued life of the timber fendering system.  The banding work is
intended to extend the life of compromised piles in the fender system and it is anticipated that

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 24, 2010 
Page 3 of 5 
further repair may be necessary. The current fender system is approximately 6 1/2 years old. A
typical design life for the timber fender system is 10 years, though we often see fender systems
lasting substantially longer, especially at container berths. Future replacement of the fender
system would be a tenant obligation if the fender system is properly designed and installed. 
Tentative Project Schedule: 
Commission Authorization                    April 06, 2010 
Procure Engineering Services                   April 23, 2010 
Permit Submitted                              May 23, 2010 
100% Design Completed                     August 23, 2010 
Commission Authorization for Construction     September 7, 2010 
Estimated Begin Construction                  February 01, 2011 
Estimated Construction Complete              March 15, 2011 
STRATEGIC OBJECTIVES: 
This project supports the Port's strategies to "Ensure Airport and Seaport Vitality", by: 
Replacing the fender system at Terminal 18 so that the Terminal can continue service for
berthing. 
Replacement of the damaged fender piles and its supporting structures in this area is basically
a maintenance project for the Seaport. It will help protect dock revenue the Port currently
receives. 
BUSINESS PLAN OBJECTIVES: 
The purpose of the project is to maintain the use of berth. 
FINANCIAL ANALYSIS: 
Budget/Authorization Summary 
Previous Authorizations (authorized by Seaport Division Director)                  $130,000 
Current request for authorization                                               $143,000 
Total Authorizations, including this request                                    $273,000 
Remaining budget to be authorized (estimated construction costs)                   $692,000 
Total Estimated Project Cost (pending final design)                              $965,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 24, 2010 
Page 4 of 5 
Project Cost Breakdown 
Design                                                                   $85,000 
Project Management                                                     $41,000 
Permitting                                                                      $41,000 
Construction  trimming & steel banding                                    $106,000 
Subtotal  current authorization request                                $273,000 
Estimated Construction  piling replacements                                $692,000 
Total Estimated Project Cost (pending final design)                              $965,000 
Source of Funds 
This project was not included in the 2010 Operating Budget because it had not been identified as
a Port obligation when the 2010 Budget was prepared. The cost of this project will be recorded
as an operating expense in the year in which the work is performed. Of the estimated $965,000
total project cost, $300,000 of the work is expected to be performed in 2010 with the remaining
$665,000 of work expected to be performed in 2011. The costs incurred in 2010 will result in an
unfavorable operating expense variance. Seaport Division will strive to offset this incremental
operating expense with savings in other operating expenses. The cost of the work expected to be
performed in 2011 will be included in the proposed 2011 Operating Budget.
This project will be funded from the general fund. 
Financial Analysis Summary 
CIP Category             Renewal/Enhancement 
Project Type              Renewal & Replacement 
Risk adjusted Discount    N/A 
rate 
Key risk factors             Construction costs may increase if necessary repairs are more
extensive than currently known. 
The effectiveness of steel banding to minimize further damage to
the split piles is not known, and will require ongoing monitoring. 
The replacement of additional fender piles may be needed if pile
banding does not fully prevent the remaining split (weakened)
piles from breaking off. 
Project cost for analysis    $965,000 (preliminary cost estimate) 
Business Unit (BU)         Container Operations

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 24, 2010 
Page 5 of 5 

Effect on business         Fender repairs will preserve existing revenue from Terminal 18
performance             container operations. Depreciation Expense will not be impacted by
this project, as this repair is an operating expense. 
Of the estimated $965,000 total project cost, $300,000 of the work is
expected to be performed in 2010 with the remaining $665,000 of
work expected to be performed in 2011.
NOI (in $000's)                 2010      2011      TOTAL
Incremental Revenue - - - 
Incremental OpExp              (300)     (665)     (965)
NOI                       ($300)    ($665)    ($965)
Depreciation                        $0        $0        $0
NOI After Depreciation        ($300)    ($665)    ($965)
IRR/NPV              N/A 
SUSTAINABILITY AND LIFE CYCLE COSTS: 
This is a temporary repair to maintain terminal operation. Value Engineering will be conducted 
at the end of the system design life to determine best fender system for current and future use of
the terminal.
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1: Proceeding with the design, bid package and replacement of the
damaged timber fender system would enable the division to minimize further risk of
operation impact, and damage to apron structure. 
Do Nothing: Continue monitoring of the timber fender system. The apron structure is
exposed to possible damage with ongoing berthing activities, creating a safety hazard for the
operation, significant cost for repair, and lengthier impact to operation. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
None