COMMISSION 
AGENDA MEMORANDUM                        Item No.          8i 
ACTION ITEM                            Date of Meeting     December 14, 2021 

DATE:     November 9, 2021 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Jessica Carlson, Real Estate Manager 
Rod Jackson, Capital Project Manager 
Melinda Miller, Director, Portfolio and Asset Management 
SUBJECT:  C14 Building Envelope Upgrade (CIP # 801164) Design Funding Request 
Amount of This Request:           $150,000 
Total estimated project cost:        $3,978,000 

ACTION REQUESTED 
Request Commission authorization for the Executive Director to develop design documents,
execute professional service contracts, apply for permits and to prepare construction documents
for the Fishermen's Terminal C14 Downey Building Upgrades Project. Total request for this action
is $150,000 for a total project cost of $3,978,000. 
EXECUTIVE SUMMARY 
The C14 Downey Building is 43 years old with its critical components at the end of their
programmed service lives. The current condition of the C14 Downey Building, built in 1978, is
very poor. The declining building condition includes window leaks, roof leaks, various structural
settlement concerns, deteriorated rotted siding and Roof Top Unit's (RTU's) that are well beyond
their service lives. Proposed modernization and upgrades are needed now to improve reliability,
eliminate slip/trip hazards, and improve customer experience while upgrading the buildings
electrical, structural, HVAC and control systems. This project will extend the service life of the
existing C14 Downey Building systems via envelope replacement, repair, or overlay, based on
recommendations  contained  in  a  third-party  assessment  completed  in  March  2015.
Additionally, due to funding priorities over the past few years, this envelope project was deferred
but is now ready to move forward due to its critical need. 
The project is currently in the preliminary design/construction documentation phase, with
preliminary design at the 30% stage of completion. 

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 8i                                   Page 2 of 7 
Meeting Date: December 14, 2021 
JUSTIFICATION 
This project supports the following Century Agenda objectives: 
1.  Position the Puget Sound region as a premier international logistics hub. 
2.  Advance this region as a leading tourism destination and business gateway. 
3.  Use the Port's influence as an institution to promote women and minority business
enterprise (WMBE) growth, small business growth, and workforce development. 
4.  Be the greenest, and most energy-efficient port in North America. 
Further, the project supports the following additional imperatives: 
A.  Protect Existing Assets 
Ensure that its highly complex Envelope system maintains its watertight integrity.
B.  Reduce Unplanned Maintenance Costs 
Mitigate future costs related to HVAC failures, including roof leaks, rot, mold, and
corrosion. 
C.  Mitigate Impacts to Existing Business Operations 
Coordinate with C14 Building tenants and work around scheduled business events. 
D.  Employ Sustainable Means and Methods 
Incorporate environmentally sustainable practices during construction where practical. 
Diversity in Contracting 
The design portion is under an existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract 
which was established prior to the Diversity in Contracting program. This IDIQ has a 17% small
business goal associated with it. The Diversity in Contracting Department will set a woman and
minority business enterprise (WMBE) aspirational goal for the construction contract. 
DETAILS 
The 15,460 sq. ft. C-14 Downey Office Building is located at Fishermen's Terminal. The building
needs repairs and infrastructure updates. A third-party consultant performed a condition
assessment in 2015 that recommended multiple envelope improvements. This is primarily in
response to that condition assessment. This project consists of replacing the exterior envelope
(siding, building insulation, windows, and doors), the HVAC system, and providing electrical
upgrades to support the HVAC replacement. The HVAC system is beyond the end of its service
life and is ready for replacement. Additionally, the existing system uses natural gas heating. The
units will be replaced with all electric heat pumps to meet the Port's environmental goals as well
as to meet the current Seattle Energy Code. The new heat pumps will be the highest efficiency
class units offered to meet the Century Agenda environmental goals. New HVAC controls will also 
be provided along with the new rooftop units. The current HVAC system uses ductwork to
distribute heated and cooled air from the rooftop units. Since the ductwork is constructed of
poor-quality materials they will also be replaced. New touch free plumbing fixtures will be

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 8i                                   Page 3 of 7 
Meeting Date: December 14, 2021 
provided in the restrooms. This includes touch free lavatories, soap dispensers, water closets,
and urinals. We will determine later if the domestic water heaters will be replaced. Electrical
upgrades will be performed to support the new HVAC equipment. The building currently uses
208V 3-phase power. New power will be provided for the new HVAC units. Because the grade
on the 1st floor is uneven, the slip/trip hazard will be eliminated by leveling the floor at the ramp
to the restrooms in the area that demand attention. 
Scope of Work 
The scope of work for the C14 Building Envelope Upgrade project includes the evaluation and
design for the following: 
(1)      Evaluate and design new energy-efficient electric roof top HVAC units which will
replace the existing natural gas units and components, 
(2)      Siding and exterior insulation replacement, 
(3)      Roof, curb, and parapet replacement, 
(4)      Interior duct work and wall modifications, 
(5)      Metering of existing tenant spaces, 
(6)      Plumbing upgrades that include touchless toilets, urinals, and faucets, 
(7)      Exterior window and door replacements, 
(8)      Structural upgrades to address lateral structural needs, and to address settlement
concerns, 
(9)      Use environmentally sustainable components and methods as appropriate, 
such as: idling control measures, waste minimization, and selecting materials with
limited toxicity and greenhouse gas emissions. 
Schedule 
Activity 
Commission design authorization               December 14, 2021 
Final design start                                   December 2021 
Commission construction authorization          Q3/Q4, 2022 
Construction start                                Q1 2023 
In-use date                                       Q1 2024 
Cost Breakdown                                     This Request           Total Project 
Design                                                    $150,000               $325,000 
Construction                                                      0             $3,653,000 
Total                                                           $150,000              $3,978,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do nothing, Maintain the current state and delay building upgrades and repairs.
Maintenance costs of $41K annually (averaged over 4 years) will continue. 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 8i                                   Page 4 of 7 
Meeting Date: December 14, 2021 
Cost Implications: $41K 
Pros: 
(1)   Saves Port funding. 
(2)   Allows port to reallocate capital investment dollars. 
Cons: 
(1)    Does not advance efforts to achieve Century Agenda goals. 
(2)    Increases the chances that water infiltration will disrupt tenant activities and damage
the interior of the facility causing expensive repairs. 
(3)    Increase of probable construction costs in the future while emergency repair costs
continue to increase. 
(4)    The cost of a future roofing project and additional repairs in the event of roof failure
would be the full cost of replacement ($3.97 million) plus escalation and the cumulative
ongoing expense costs. Risk cost of lost tenant space due to emergency repairs is
unknown but likely would be high. 
(5)    Safety of the tenant could be compromised due to the slip hazard to tenant and
employees. 
(6)    Indefinite deferral could also lead to the risk of catastrophic failure. 
(7)    Maintenance costs will continue. 
This is not the recommended alternative. 
Alternative 2  Base Envelope Upgrade including lateral structural support to maintain West
Emerson Place faade wall windows (17ea). 
Cost Implications: $4.55M 
Pros: 
(1)   Advances Century Agenda goals. 
(2)   Upgrade and replace various elements on the existing C14 Building will provide a 50+
year life for the building, with the Roofing and Window systems will have a 30+ year life
with good maintenance. 
(3)   The new electric HVAC system will have a 2025-year life span and serve the Port and
the tenants well. 
(4)   The siding replacement will have a 50-year life. 
(5)    Helps to assure a stronger positive tenant experience and avoids potential safety
hazards. 
(6)    Provides protection of Port assets. 
(7)    Provide warranted building elements that will minimize the cost of repairs going
forward for the foreseeable life of the building. 


Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 8i                                   Page 5 of 7 
Meeting Date: December 14, 2021 
Cons: 
(1)   This alternative uses $4.55M of capital funds that might otherwise be made available
for other uses on other projects. 
(2)   Repairing and replacing various elements and upgrades will provide a higher total cost
of ownership than Alternative 3. 
(3)   C14 Downey sheer wall installation will require seventeen (17each) windows on the W.
Emerson PL. side of the building to be retained with the installation of the steel lateral
structural support. 
This is not the recommended alternative 
Alternative 3  Base Envelope Upgrade including lateral structural support will eliminate West
Emerson Place faade wall windows (17ea). 
Cost Implications: $3.97M 
Pros: 
(1)   Advances Century Agenda goals. 
(2)    Upgrade and replace various elements on the existing C14 Building will provide a 50+ 
year life for the building, with the Roofing and Window systems will have a 30+ year life 
with good maintenance. 
(3)    The new electric HVAC system will have a 2025-year life span and serve the Port and
the tenants well. 
(4)    The siding replacement will have a 50-year life. 
(5)    Repairing and replacing various elements and upgrades will provide a lower total cost 
of ownership than Alternative 2. 
(6)    Helps to assure a stronger positive tenant experience and avoids potential safety
hazards. 
(7)    Provides protection of Port assets. 
(8)    Provide warranted building elements that will minimize the cost of repairs going
forward for the foreseeable life of the building. 
Cons: 
(1) This alternative uses $3.97M of capital funds that might otherwise be made available for
other uses on other projects. 
(2) C14 Downey sheer wall installation will require seventeen (17each) windows on the W.
Emerson PL. side of the building to be eliminated and blocked off to provide timber 
lateral structural support. 
This is the recommended alternative. 



Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 8i                                   Page 6 of 7 
Meeting Date: December 14, 2021 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary                Total 
COST ESTIMATE 
Original estimate                                 $3,978,000 
AUTHORIZATION 
Previous authorizations                            $182,000 
Current request for authorization                  $150,000 
Total authorizations, including this request         $325,000 
Remaining amount to be authorized            $3,653,000 
Annual Budget Status and Source of Funds 
This project has been included in the 2022 Plan of Finance under C801164 FT C14 Downey
Building Improvements at an estimated total project cost of $3,233,000. The additional estimated
cost of $745,000 would be funded by C800002 Maritime Reserve. 
This project will be funded by the Tax Levy. 
Financial Analysis and Summary 
Project cost for analysis              $3,978,000 
Business Unit (BU)                  Maritime Portfolio Management 
Effect on business performance     The project will maintain current revenue sources from 
(NOI after depreciation)             C14 Downey Building and generate additional revenues
when complete. Depreciation will increase by $132,600 
per year, based on its useful life of 30 years. 
IRR/NPV (if relevant)                MIRR = 6.4% using a discount rate of 5.6% 
Payback = 15 years 
CPE Impact                       N/A 
Future Revenues and Expenses (Total cost of ownership) 
This upgrade will provide protection of Port assets and extend their useful life. Maintaining
existing assets will preserve the economic vitality of our operations and serve the Port, tenants,
their customers well. 
Environmental Summary: 
This project is Tier 2 under the Sustainable Evaluation Framework. Third-party certification is not
being pursued due to the project's limited scope, but green design options are being considered.
Opportunities are being explored to reduce the building's and construction project's carbon
footprint, increase energy efficiency, eliminate natural gas, and reduce stormwater flows to the

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 8i                                   Page 7 of 7 
Meeting Date: December 14, 2021 
City's combined sewer outfall. Solar opportunities were explored but eliminated from scope due
to weight and building positioning. 
The C14 Downey Building Envelope and HVAC System Replacement Project demonstrates the
value of sustainable project evaluation processes which consider social, environmental, and
economic benefits holistically. Sustainability goals include energy efficiency, environmental
health, sustainable asset management, material reuse, financial sustainability,  and tenant 
impacts. These goals will be considered to identify a recommended alternative that maximize
objectives while balancing costs and project objectives. 
ATTACHMENTS TO THIS REQUEST 
(1)   Sustainable Design Approach (SDA) 
(2)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None. 











Template revised June 27, 2019 (Diversity in Contracting).