Item No: 8e_Supp
Meeting date:  March 26, 2024
Maritime Industrial Center
Electrical Infrastructure Replacement

Design-Build Construction Authorization
Kelly Purnell – Capital Project Manager
Jennifer Maietta– Director, Real Estate Asset Management (Sponsor)
Kenneth Lyles – Director, Fishing and Commercial Operations (Sponsor)

CIP # C801241

                Action Requested
Request Commission authorization for the Executive Director to:
1. Approve construction funding in the amount of $7,948,000
for a Design-Build construction contract for the Maritime
Industrial Center Electrical Infrastructure Replacement
project.
Amount of this Request: $7,948,000
Total Estimated Project Cost: $12,408,000


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                 Project Overview
•  Currently authorized for design for Design-Bid-Build project delivery
– 60% design
– Severe operational constraints and complex site conditions
– High probability of high bids and risk for change orders during construction
without early onboarding of contractor to determine construction methodology
and logistics approach
•  Design-Build project delivery
– Design-Build will allow for cost certainty earlier and provide for more informed
decisions before going to construction
– Minimizes risks associated with site, operational constraints and other projects
early through early contractor engagement.

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                Current Tenant Mix
•  Building A-1:
– Mix of storage, warehouse, repair and maintenance shops, silk screen
printing
• Building A-2, yard and moorage:
– Boat yard and marine services (metal fabrication, woodwork, heating
and cooling, electronics)
• Building A-3, A-4, A-5, yard and moorage:
– Fishing vessel support operations

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                  Current Tenants
MIC Tenant                         Space Type                         Industry/Use
Bristol Wave Seafoods, LLC              Industrial                              Boatyard, fishing industry
Alliant Marine Group, LLC               Industrial                               Boatyard, recreational vessels
Biely & Shoaf Co.                        Warehouse and office                   Distribution logistics
Three By Three, Inc                     Warehouse                             Distribution logistics
Washington State Dept. of Fish &
Offices and storage                     Law enforcement and biology
Wildlife
Silver Bay Seafoods, LLC                 Industrial                               Fishing operations
DC Diesel, LLC                           Industrial                               Marine engine repair
Oxford Screen Printing                  Industrial                              Commercial printing
Shelford's Boat, Ltd                      Storage                                  Fishing operations
International Pacific Halibut
Storage                               Maritime non-profit
Commission
Alaskan Leader Fisheries LLC            Storage                                 Fishing operations

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               Cost Estimate Increase
• Direct costs updated based on design work completed since
last authorization and transitioned to Design-Build.
• Continued market volatility
4% increase in general contractor markups
3% increase in construction escalation


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                      Project Location
Electrical Equipment
Replacement                                       Demolition of 5
consolidated to 3                                            existing facilities
locations






2700 W Commodore Way, Seattle, WA 98199
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        Proposed project layout & Site Constraints
Limited and                                                                              Single point of
narrow access                                                                           entry to tenant
around building                                                                                property
A-1

Areas of
construction
impact

Single point of
entry to MIC site
off Commodore
Way

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             Current Condition - Electrical
•   Significant corrosion
•   Stormwater intrusion
•   Degraded protective coatings
•   Decaying structural pads




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       Project Scope – Electrical Replacements
•  Demolition of (5) existing switchboards and associated equipment
•  Demolition of wharf shed
•  Install (5) new switchboards and associated equipment
– Replace primary switchboards 2SPN and 4SP
– Replace wharf switchboards 4W and 2W
– Replace switchboards 2P, 4P, EY4, SEY4
•  Install new conduits and vaults
•  Potential for contaminated soil remediation

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                     Project Risks
RISKS                       DESCRIPTION                                              PROBABILITY   IMPACT     MITIGATION
Impacts to tenants, fishing fleet, and Port operations at the site
Transition project to Design-Build to incorporate
Operational Constraints          during construction are likely due to very constrained site access and    Med             High
construction methodology early
operating space.
Equipment at end of useable life due to exposure to maritime
Equipment at end of lifespan                                                                            High              High          Replace electrical switchboards and switchgear.
environment and length of use.
Transition project to Design-Build to incorporate
Power interruptions to           Power will need to be interrupted at the site when installing and
High            Med         construction methodology and temporary power logistics
buildings/operations             switching over to new equipment.
early.
Port is acquiring equipment in advance to mitigate
Electrical equipment supply chain has been impacted for years due to                                    additional delays that would occur by waiting for
Long lead equipment
high demand and lingering Covid disruptions. Procurement lead        Med             High          contractor. Delivery and transfer of equipment to
procurement delays
times are 65-80 weeks. Delays could impact construction.                                               contractor will be included in RFP documents for Design-
Build.
Avoidance of sea wall tie-backs in locating equipment,
Two of the sea walls at the property are past typical lifespans for
and minimize trenching as feasible. Transition project to
1940’s and 1950’s era sea wall    category of structures. Trenching must occur in proximity and risk of    Med              High
Design-Build to incorporate construction methodology
damage exists
early.
Transition project to Design-Build to incorporate
Other projects (stormwater improvements, EV Charger) are
construction methodology early. Close coordination with
Other projects on-site             scheduled on the property and could cause more complexity in          Med              High
other project design and construction teams.
constructing electrical, impacting schedule and cost.
Site is an old Coast Guard Facility and is across the street from an old
Unforeseen environmental                                                                                                     Contingency budget associated with unanticipated soil
petroleum company. Unknown soil contamination may exist that was   Low             Med
costs                                                                                                                                    remediation.
not captured in geotechnical analysis.
Submit for shoreline and SEPA exemptions before
Permitting                       Delays in permitting due to design issues                              Med             Med         project goes to a Design-Build contractor. Have
contractor obtain grading/building permits.
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                   Opportunities
• Opportunities
– Upgraded and safe equipment with higher load capacities for future
site upgrades (EV chargers, shore power, tenant changes)
– Design-Build allows for early collaboration with general contractor to
finish design and determine best construction methodology and
logistics
– Design- Build mitigates risks earlier in the process rather than just in
construction.

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                  Preliminary Schedule

Commission design authorization              2022 Quarter 4
Design start                                     2022 Quarter 4
Commission authorization for major electrical  2023 Quarter 1
equipment procurement
Commission Design-Build for remaining        2024 Quarter 1
design and construction authorization
Construction start                              2025 Quarter 2
In-use date                                    2026 Quarter 1

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                    Funding
Cost Estimate/Authorization Summary        Capital        Expense            To ta l
COST ESTIMATE
Original estimate                              $1,500,000             $0    $1,500,000
Previous changes - Net                        $7,090,000             $0    $7,090,000
Current change                             $3,818,000            $0    $3,818,000
Revised estimate                           $12,408,000             $0   $12,408,000
AUTHORIZATION
Previous authorizations                       $4,460,000             $0    $4,460,000
•   Design                                              $850,000                          $850,000
•   Electrical Equipment Procurement            $3,610,000                        $3,610,000
Current request for authorization              $7,948,000             $0    $7,948,000
Total authorizations, including this            $12,408,000              $0   $12,408,000
request
Remaining amount to be authorized                  $0            $0            $0

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               Questions?

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