11a. Presentation

02 2023 Maritime EDD Operating CIP Budgets

Item No.        __11a_supp 2_____
Date of Meeting:  October 11, 2022__
Maritime and Economic Development
Draft 2023-27 Capital Improvement Plan (CIP)
October 11, 2022

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         Continued Priorities Going Forward
• Responding to cost increases and capacity issues
• Inflation and staff shortages
• Revised cost estimates and schedules
• Improving Capital Project Delivery
• Identify and implement system improvements
• Preparation for several major projects to move into Construction
• Expand Sustainable Evaluation Framework
implementation
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                    CIP Timeline

2023-2027 CIP          Preliminary        Continue to Refine      MD/EDD Budget       2023 Tax Levy &          Approval of
Planning and            MD/EDD             CIP, Funding            Briefings            Draft Plan of
Development                                                                                        2023 Budget
2023-2027 CIP &         Capacity and                             Finance Presented
Funding Briefing       Operating Budget                               to Commission
May/June           August 2nd          August/Sept.          October 11          October 25          November 29




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         Capital Improvement Plan Priorities
6%

Financial Sustainability:
Making investments that support      26%
maritime industries and the Port’s
long term funding capacity
49%      Asset Stewardship:
Maintaining the Port’s capital assets
and preserving Seattle’s iconic
working waterfront

Community & Environment:   19%
Stewarding our environment and social responsibilities
*All projects incorporate Community & Environment priorities
when possible                                                                      Reserves

Nearly half of the CIP is dedicated to preservation of existing assets                       4

    Capital Improvement Plan Status & Certainty
Degree of Uncertainty
A few key large projects are approach ing construction authorization                      5

           Draft 2023 to 2027 CIP: $522M
Forecasted 5-Year Spend
200,000

180,000

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0
2023                  2024                  2025                  2026                  2027
Large     Mid-Cap     Small     Fleet/Technology     Tenant Improvements     Reserves

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       5-Year Capital Spend by Business Group
Maintenance
Facilities
Rec Boating
Environmental
Cruise
Portfolio Management
Fishing & Commercial
$0      $20     $40     $60     $80     $100    $120    $140    $160    $180
$ in millions
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           Draft 2023 to 2027 CIP: $522M
$ millions                            Total Project Cost
Project Group/Name⁴                    Status          2023   2024   2025   2026   2027  5Y Total Current Previous¹ Change
T91 Uplands Development Phase I           4  In Design       1.7    14.0    48.0    13.0     -       76.7     79.1      51.4     27.7
s t
T91 Uplands Utility Infrastructure             2  Pre-design       -        0.5     6.0     7.5      -        14.0      14.0      10.1      3.9
j e c o r P
T91 Berth 6 & 8 Redevelopment             4  In Design       0.7    30.7    36.0     0.5     -       67.9     70.1      66.8      3.4
FT NW Dock West Improvements            2  Pre-design      0.3    2.2   12.0   18.0   18.0     50.5     64.5     64.5      -
r e a g   P66 Shore Power                                    4   In Design        15.4     12.2       -          -          -          27.6       32.5        30.1        2.4
L  FT Maritime Innovation Center                 4  In Design        3.3    16.8      2.3      -         -         22.3      25.1       25.1        -
Pier 90/91 Dock Rehab                     2  Pre-design      0.3     0.8    10.1    10.0     -        21.2     21.2      21.2       -
Mid-Cap                                                26.0   52.2   31.5   13.2    6.5    129.4
Small                                                         4.5     3.0     1.0     1.0     1.0     10.5
Fleet/Technology                                               5.3     2.3     2.0     1.6     1.0     12.2
Tenant Improvements                                        0.8     0.6     0.6     0.6     0.6      3.0
Management Reserve                                     4.0    4.0    5.0    8.0   11.0     32.0
Reserves  EDD Strategic Opportunity Fund                                   -      12.5    12.5      -        -        25.0
MCAAP/Waterfront Clean Energy Strategy²                      0.3     1.8     6.2     9.7     2.0     20.0
Sustainable Evaluation Framework Reserve²                      -       2.0     2.0     2.0     2.0       8.0
Waterfront Art Pool³                                              0.1     0.7     0.4     0.1     0.5       1.9
Total  $62.8 $156.1 $175.6   $85.1   $42.6   $522.3
¹Total estimated project cost as of August Commission Retreat
²Does not represent total spend on Maritime Clean Air Action Plan, Waterfront Clean Energy Strategy, and/or Sustainable Evaluation Framework.
Reserves capacity to incorporate initiatives in future project costs.
³Does not represent total art spending. Only shows amount not yet assigned to a specific project.
⁴Project Categories: Large >$10M, Mid $1M to $10M, Small <$1M
Table does not include CIP Cash Flow Adjustment

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        Updates on Major Projects in Design


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 At 90% Design                                T91 Berths 6 & 8 Redevelopment
Scope:
•  Berth Reconstruction
–Removal of existing creosote piles from water column
–Overall reduction of overwater coverage
–Slope rehabilitation & stabilization
–Concrete pile supported replacement pier
–Boathouse and float reconfiguration
–Upgraded Electrical Power Supply/ Distribution
•  Uplands Improvements
–Replacement of support office buildings (Port & Tenant)
–Stormwater upgrades
Estimated Cost: $66 million
Schedule:
Q1 2023: Design Complete
Q2 2023: Permits Issued, Advertise
Q4 2023: Construction Begin
Q2 2025: Construction Complete
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 At 15% Design                            Terminal 91 Uplands Development
Scope:
Phase I: Design and documentation will be developed for a Major
Phased Development (MPD) permit and to full building
permit/construction documents to be executed through
construction of approximately 120,000 square feet (SF) of
industrial building space with minimal facility infrastructure
improvements over approximately six (6) acres of the site.
Estimated Cost:
$77 million for Phase I Building
$14 million for utility infrastructure
Schedule for Phase I:
Q3 2023: Design Complete
Q3 2024: Construction Begin
Q4 2025: Construction Complete
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 At 90% Design                            Maritime Innovation Center
Scope: restoration and modernization of the Port’s historic Ship
Supply Building into a Living Building Challenge-certified facility with
advanced sustainability and resiliency features. The project will create
15,000 square feet of space offering an incubator and accelerator
environment in support of maritime innovation. A related project will
provide site improvements designed to enhance the experience of
users and visitors of the Fishermen’s Terminal facility.
Estimated Cost: $25 million
Schedule:
Q3 2023: Design Complete
Q3 2023: Permits Issued, Advertise
Q2 2024: Construction Begin
Q3 2025: Construction Complete
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 At 90% Design                            P66 Shore Power

Scope: Provide shore power connection for cruise ships
while at berth at Pier 66’s Bell Street Pier Cruise Terminal.
Power to be provided across Terminal 46 via duct bank and
then submarine cable in Elliott bay between terminals.
Electrical equipment installed at the south end of Pier 66 will
distribute the power to the cruise ship connection.
Estimated Cost: $32.5 million
Schedule:
Q4 2022: Long lead cable and equipment purchases
Q1 2023: Design Completion
Q2 2023: Major Works Contract Advertised
Q3 2023: Construction Begins

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        New Large Projects Moving Forward
• CEM/T5 Access: $10M (revised estimate underway)
– Construction of new road over railroad tracks for heavy freight to
access CEM and avoid Harbor Ave.
• Pier 90/91 Rehabilitation: $21M
– Pile cap and deck panel refurbishment
• Centennial Park Shoreline Stabilization: $8M
– Address eroding shoreline and impacts to pedestrian path

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               Top Mid-Cap Projects
•  T91 New Cruise Gangways: $8.7M         •  FT Site Improvements: $3.5M
•  P66 Fender Upgrade: $7.7M               •  P69 Underdock Utilities: $3.4M
•  P69 Concrete Dock Rehab: $7.8M         •  MD Video Cameras: $3.2M
•  Harbor Mooring Dolphins: $7.5M         •  SBM G Dock Rehab: $3M
•  P66 Retail HVAC Upgrade: $6.9M
•  Waterfront LED Lighting: $3M
•  MIC Electrical Replacement: $6.4M
•  P69 Clearstory/Skylights: $3M
•  T102 E Dock: $4.7M
•  BHM Pile Wrap & Protection: $3.4M      •  WTC Garage Elevators: $2.8M
•  T106 Mooring Dolphins: $3.5M            •  FT C15 Improvements: $2.8M

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     Projects Pending Future Funding Availability
•  Existing:
– T91 Uplands Phase 2 Buildings: $204M
• Evaluating development options as Phase I moves forward
– T46 North Pier Structure Replacement: $75M
• Coordination with other uses of Terminal 46
•  New projects:
– Freshwater Wetland Mitigation: $40M
– T46 North Berth Vessel Charging: $10.5M
– T91 Additional Shore Power (Cruise): $4M
– T91 Shore Power (Fishing): $1.5M

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      Challenges of Forecasting Future Funding
•  Maritime/EDD funding is shared with NWSA
•  Most future capital investments (2028-2032) will be funded with
operating income and revenue bonds
– Future funding is affected by:
• Net income
• Continuation of tax levy
• Environmental remediation liability payments
• Level of other commitments, including community programs and regional
transportation contributions
•  Funding information is still preliminary
– Oct 25th Plan of Finance Briefing will provide more comprehensive and
updated information
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