PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA                   Item No.        6b 
Date of Meeting       July 13, 2010 

DATE:      June 25, 2010 
TO:       Tay Yoshitani, Chief Executive Officer 
FROM:     Mike McLaughlin, Director, Cruise and Industrial Properties 
Scott Pattison, Manager, Industrial Properties and Business Development 
Mark Longridge, Project Manager, Capital Development Division 
SUBJECT:   Construction Funding for North Harbor Island Mooring Dolphins 
CIP #C800182 
Amount of This Request: $1,850,000     Source of Funds:  General Fund 
State and Local Taxes Paid: $165,000    Est. Workers Employed    24 
Total Project Costs: $2,350,000 
ACTION REQUESTED:
Request authorization for the Chief Executive Officer to pre-purchase long-lead
construction materials, and to advertise for construction bids, award the contract and
construct the North Harbor Island Mooring Dolphins project CIP #C800182 for an
estimated cost of $1,850,000 bringing the total authorized amount of this project to
$2,350,000. 
SYNOPSIS:
The Capital Development Division (CDD) requests approval of construction funding for the
replacement of four existing failed timber mooring dolphins with four new steel dolphin
structures located approximately 50' north of the Harbor Island shoreline. The restoration of
this facility would replace two berths, able to accommodate up to four 400' barges (one
alongside, another rafted at each berth), and generate additional revenue to the Seaport.
Industrial moorage for barges and other commercial vessels is essential to a healthy port and
harbor. The supply of industrial moorage in our harbor has declined, while demand for such
moorage has grown. Federal security requirements for moorage of fuel barges have
exacerbated the shortage of suitable moorage for that sector. This project, if funded for
construction, would restore moorage capacity that was removed from service due to age and
deterioration.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 25, 2010 
Page 2 of 6 
PROJECT JUSTIFICATION:
This request falls under and is part of the "Industrial Moorage Initiative" which was
presented as a Policy and Staff Briefing in public session on June 3, 2008. Maintaining an
adequate supply of functional Industrial Moorage is central to operating a healthy working
harbor, preserving the marine industrial sector, and buttressing the regional economy. By 
proceeding with this project, the Port protects our current business, provides for future
growth in this sector, safeguards the "working waterfront," and supports maritime jobs. 
The North Harbor Island site was identified as a "Phase-Two" site in Seaport Planning's 
Barge Layberth study of July 2008. These improvements will help to recover moorage
displaced from other Port facilities with the implementation of federal security program
Transportation Worker Identification Credential (TWIC) in February 2009 and activation of
cruise operations at Terminal 91's (T-91) Smith Cove facility in April 2009. 
PROJECT STATEMENT AND OBJECTIVES: 
Project Statement: 
The project will replace 4 existing timber mooring dolphins at the north end of Harbor
Island. The current dolphins have failed and are not in useable condition. The
replacement dolphins would be steel pipe pile and steel frame platforms with sleeved
fender piles. 
Some long-lead construction materials may need to be pre-purchased to complete
construction on schedule. 
The work would be completed using a publicly bid major works construction contract. 
Project Objectives: 
This work, if authorized, is aligned with the Industrial Moorage Initiative as it is intended
to preserve and expand industrial moorage facilities in the harbor to provide for a vibrant
Seaport that adequately serves the requirements of all essential sectors of the maritime
community. 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
Finalize construction bid set inclusive of plans, specifications and engineers' cost
estimate; 
Determine what, if any, construction materials should be pre-purchased and act
accordingly; 
Advertise and award construction contract; 
Remove existing failed creosote timber dolphins; and 
Drive steel bearing and fender piling, construct dolphin platforms

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 25, 2010 
Page 3 of 6 
Schedule: 
We expect the final bid documents to be prepared and advertised within three months, and
the Mooring Dolphins to be completed and the facility in service by March 31, 2011. 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary 
Original Budget                                                                              $0 
Previous Authorizations                                                                 $500,000 
Current request for authorization                                                         $1,850,000 
Total Authorizations, including this request                                               $2,350,000 
Remaining budget to be authorized                                                           $0 
Total Estimated Project Cost                                                            $2,350,000 
Project Cost Breakdown 
Construction                                                                           $1,795,000 
Construction Management                                                         $141,000 
Design Services                                                                        $136,000 
Project Management                                                                $95,000
Permitting                                                                                $18,000 
State & Local Taxes (estimated)                                                         $165,000 
Total                                                                                     $2,350,000 
Source of Funds 
This project was included in the 2010 Plan of Finance under Committed CIP# C800182,
North Harbor Island Mooring Dolphins (4), in the amount of $1,900,000. The additional
$450,000 required to fund the balance is available due to lower than anticipated spending on
other 2010 Plan of Finance Committed projects, such as the Terminal 104 Site
Improvements. 
The project will be funded from the General Fund. 
Financial Analysis Summary:
CIP Category                Renewal/Enhancement 
Project Type                  Renewal and Replacement 
Risk adjusted Discount rate    8.5%

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 25, 2010 
Page 4 of 6 
Key risk factors                 Construction costs may vary as steel prices are highly
volatile, and have changed since original estimate in
January 2008 
The estimated financial return on this project is based on
existing demand for barge layberth moorage, including
vessels displaced from T-91. Financial performance will be
lower if usage or market rates are lower than estimates used
in the related financial analysis. 
Marketing efforts are currently underway to maximize
utilization and revenue for this site, as well as for other Port
barge moorage locations throughout the harbor. 
Project cost for analysis        $2,350,000 
Business Unit (BU)            Dock Operations 
Effect on business             Estimated impact on Net Operating Income (NOI) and NOI after
performance                 Depreciation for years 2010 through 2014 is shown below. 
NOI (in $000's)            2010     2011     2012     2013     2014
NOI                   $0     $99    $207    $212    $218
Depreciation                $0     ($98)   ($118)   ($118)   ($118)
NOI After Depreciation       $0       $1      $90      $95     $100
IRR/NPV                   NPV     IRR    Payback
(in $000's)               (in years)
($28)      7.0%        12
ECONOMIC IMPACTS AND BUSINESS PLAN OBJECTIVES: 
Completion of this work will provide two additional barge layberths capable of
accommodating up to four 400'+ barges with rafting. Combined with the 1,100' of
restored industrial moorage facilities provided by the Phase I projects completed in 2009
and 2010, this would partially restore capacity lost from service resulting from
deteriorated berths taken out of service and berth space displaced by alternative uses. 
STRATEGIC OBJECTIVES: 
Replace lost industrial moorage capacity essential to operating a full-service harbor. 
Specifically, replace the four existing timber North Harbor Island Mooring Dolphins, 
that were leased for a period of decades prior to deteriorating into age-related
disrepair, at which time the lease for these mooring dolphins expired and they ceased
being used. 
Demand for their recapitalization has been expressed by industry for the following
uses: Seasonal barge moorage in winter, when barge service to ice-restricted regions
of Alaska stops; year-round moorage for fuel barges that operate in and around the
harbor and Puget Sound; support for local shipyards by berthing vessels awaiting or
upon completion of dry-dock repairs; daily moorage, as a preferred substitute to

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 25, 2010 
Page 5 of 6 
mooring at the Duwamish Head Buoys; and seasonal moorage during tribal treaty
fishing periods to reduce congestion on the Lower Duwamish Waterway and Elliott
Bay. 
The Port is in receipt of several letters from industry supporting recapitalization of
these mooring dolphins for reasons outlined above. 
If reconstructed, these mooring dolphins would provide additional moorage to
alleviate the current shortage caused by the relocation of Cruise operations to T-91,
and provide a convenient alternative to the current practice of rafting barges in the
lower Duwamish. 
The proposed offshore location would not require a TSA Facility Security Plan so
could provide moorage for vessels subject to Maritime Transportation Security Act
(MTSA) without the added cost burden of security fees currently required for
landside berths. This provides the site with a cost advantage for MTSA vessels such
as fuel barges over other landside sites. 
Based upon industry responses, following completion of the project, we expect to be
able to lease or rent these moorages, bringing in additional revenue to the Seaport. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1: Do nothing. With the displacement of barge layberth space at T-91 during
periods of overlap between the cruise and fishing industry seasons, the Port would not have
adequate barge layberth space for current and future tenants, even with all Industrial Moorage
Initiative Phase One barge layberth sites operational. For these reasons, Alternative 1 is not
recommended. 
Alternative 2: Develop new industrial moorage elsewhere in the harbor. This would require
development of a new design and permits  at considerable cost and delay. For these
reasons, Alternative 2 is not recommended at this time, 
Alternative 3: Authorize replacement of two of the existing four failed timber dolphins with
new steel dolphins. This would restore only one berth, which would not adequately meet
expressed demand and needs for the harbor. Moreover, the unit cost of constructing two
dolphins is substantially higher than constructing all four dolphins at the same time. For
these reasons, Alternative 3 is not recommended. 
Alternative 4: Authorize the replacement of all four of the existing failed timber
dolphins with new steel pile and steel frame dolphins to reestablish two (2) industrial
moorage berths to accommodate current barge layberth moorage requirements and
obligations. This is the recommended alternative.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 25, 2010 
Page 6 of 6 
OTHER DOCUMENTS: 
Industry Letters of Support: 
Island Tug & Barge Co.                 June 24, 2010 
Marine Exchange of Puget Sound        June 23, 2010 
Olympic Tug & Barge, Inc.              May 4, 2010 
Marine Resources Group               September 5, 2008 
Northland Services                     September 5, 2008 
Western Towboat Company            September 5, 2008 
Harley Marine Services                 September 5, 2008 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
Authorization for Design, Permitting and Material Procurement Funding for North
Harbor Island Mooring Dolphins  August 11, 2009 
Authorization for construction of Phase I Barge Layberth improvements at Terminal
25, Pier 28 and Terminal 46 - October 14, 2008 
Policy and Staff Briefing  Industrial Moorage Initiative - June 3, 2008