COMMISSION
AGENDA MEMORANDUM
Item No.
ACTION ITEM
Date of Meeting
DATE:
September 10, 2024
TO:
Stephen P. Metruck, Executive Director
FROM:
William Shelton - Capital Project Manager
Jennifer Maietta, Director, Real Estate Asset Management
8f
September 10, 2024
SUBJECT: Waterfront Smart Meters (C801269) - Phase 1
Amount of this request:
Total estimated cost (Phase I):
$350,000
$2,500,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to approve design funding in the
amount of $350,000 for the Waterfront Smart Meters Phase 1 Project for a total authorized
amount of $475,000.
EXECUTIVE SUMMARY
This project is the first phase of implementation of the program-level Waterfront Smart Meters
CIP C801269 that will:
•
•
Upgrade existing metering infrastructure across waterfront properties to smart meters
for accurate, remote, automated, real-time data collection to meet future city and state
energy and greenhouse gas reporting requirements.
Install related equipment (gateways, cellular communication, conduits, network switches,
etc.) needed to establish a secure and reliable communication network between smart
meters and the Port's Energy Management System (EMS).
Buildings and level of metering are being prioritized through the phasing of this CIP to meet city
and state energy compliance requirement deadlines. At the program level, it is anticipated that
about 200 electric and natural gas meters would be installed, but this number will be refined as
future project phases advance in design. Phase 1 will install a total of 25 smart meters to obtain
building-level electricity and natural gas use at the following priority facilities:
•
•
Pier 66 Cruise Terminal and Conference Center
Terminal 91 Cruise Terminal Building
Template revised January 10, 2019.
COMMISSION AGENDA - Action Item No. 8f
Meeting Date: September 10, 2024
•
•
•
•
Page 2 of 6
Terminal 91 Building C175
World Trade Center West
Marine Maintenance Building A1
Fisherman's Terminal Building C15
Thirty percent design development has been completed.
JUSTIFICATION
Much of the waterfront utilities are currently metered using traditional analog utility meters
which require manual recording to determine energy use. Manual reading of utility meters is
inefficient, costly, and can be inaccurate and in some locations, may also pose safety risks to the
meter reader. In addition, the City of Seattle and the State of Washington are currently changing
their energy reporting requirements to require use of smart meters for energy use reporting
purposes.
Port of Seattle Maritime Environment and Sustainability Department (ME&S) procured the
services of a consultant in 2021 to survey existing Port of Seattle Waterfront infrastructure to
make preliminary building-meter assignments, as well as provide key findings and
recommendations for implementation of smart meters across the Port of Seattle Waterfront
Facilities. Using the results from this survey, Port of Seattle ME&S developed the smart meter
program which aims to install smart electric and natural gas meters in Maritime buildings (which
include prior EDD buildings incorporated into the Maritime Division), as well as related
equipment (cellular communication, gateways, conduit, enclosures, current transformers, etc.),
and incorporate labor associated with design and installation. This includes integration with the
EMS and Building Management Systems, and post-construction deliverables such as linediagrams and an Operation & Maintenance Plans.
This project is in support of the Port's Century Agenda goal to be the greenest, most energy
efficient port in North America. It will enable the Port to comply with local and state energy
codes, enable accurate and transparent calculation of Energy Use Intensity to meet the WA Clean
Building Performance Standard (CBPS), and provide efficient energy-use data gathering needed
to better identify and plan future building energy efficiency projects.
Installation of Smart Meters will provide the following benefits:
•
•
•
•
•
•
Greenhouse gas emissions and energy use monitoring.
Revenue-grade utility monitoring.
Enable facility managers to more easily identify equipment issues.
Enable remote reading of utility meters to increase safety, save time, and improve
accuracy.
Improve the accuracy of tenant utility billing
Compliance with the WA Clean Building Performance Standard.
Template revised June 27, 2019 (Diversity in Contracting).
COMMISSION AGENDA - Action Item No. 8f
Meeting Date: September 10, 2024
•
•
Page 3 of 6
Compliance with City of Seattle's Building Emissions Performance Standard.
Compliance with Seattle Commercial Energy Code.
Without installing smart meters, the Port of Seattle would need to take the investment pathway
for the Clean Building Performance Standard compliance in some buildings. This would require
an ASHRAE Level 2 audit, implementation of all cost-effective measures, and measurement and
verification of those measures. Installation of smart meters will also support the Port's efforts to
maximize utility incentives on projects and quickly determine if maritime facilities are within
energy and greenhouse gas emissions requirements and on track to achieving Port goals. The
integration of meters, as proposed in this project, represents an important step forward in the
modernization and digitization of Maritime assets.
Diversity in Contracting
This request is for design funding. The design will be accomplished by Port of Seattle staff. No
contracting required.
DETAILS
Scope of Work
This project will install both natural gas and electric smart meters and all associated conduit,
cable, Long Term Evolution (LTE) connections, network switches, and gateway infrastructure
needed to digitally gather building level metering data at the following facilities:
•
•
•
•
•
•
Pier 66 Cruise Terminal and Conference Center
Terminal 91 Cruise Terminal Building
Terminal 91 Building C175
World Trade Center West
Marine Maintenance Building A1
Fisherman's Terminal Building C15
These facilities were identified as the highest priority by Port MES. Installation of smart meters
at these facilities within the next two years is needed to comply with City of Seattle commercial
energy code and achieve monitoring requirements for the CBPS and Seattle's Building Emissions
Performance Standard (BEPS). Port ME&S is currently working on developing the requirements
and scope for future phases in this program and will incorporate lessons learned from phase 1
and all subsequent phases.
The new meters will be connected to the Port of Seattle EMS where the data from the meters
will be stored for monitoring, and future analysis and reporting.
Template revised June 27, 2019 (Diversity in Contracting).
COMMISSION AGENDA - Action Item No. 8f
Meeting Date: September 10, 2024
Page 4 of 6
Port Construction Services (PCS) contracts will be used for the installation of the meters and
conduits. The installation of the network gateways and the connection of the meters to the Port's
EMS will be led by the Port's EMS provider, Vitality.
Schedule
Activity
Design start
Commission authorization for design
Commission authorization for construction
Construction Start
Complete Install of smart meters
Cost Breakdown
Design
Construction
Total
February 2024
September 10, 2024
January 2025
2025 Quarter 2
2026 Quarter 1
This Request
Total Project
$350,000
$475,000
$0
$2,025,000
$350,000
$2,500,000
This project received $125,000 in seed money authorized to complete the project notebook and
advance the design to 30%. This authorization request is for the remaining funds needed to
complete the design, and fund coordination with ICT, PCS pre-construction support and
procurement, Port MES support, and permitting costs.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 - Defer installation of smart meters and rely on utility billing data for energy
information and conduct required audits as a means of achieving compliance with city and state
law.
Pros:
(1)
Cons:
(1)
(2)
(3)
Preserve capital capacity for other projects.
Meter reading will need to be done manually, which is time consuming and labor
intensive and with safety risks.
Potential for reporting errors as readings will be conducted manually.
Without installing these smart meters, the Port of Seattle may need to take the
investment pathway for clean building performance standard compliance at certain
buildings. This would require an audit and potentially trigger a requirement to install
EEM that have a simple payback within the life of the measure, which is a more costintensive compliance approach.
This is not the recommended alternative.
Template revised June 27, 2019 (Diversity in Contracting).
COMMISSION AGENDA - Action Item No. 8f
Meeting Date: September 10, 2024
Page 5 of 6
Alternative 2 - Instead of a phased approach, install smart meters at all facilities identified at
once.
Pros:
(1)
(2)
Cons:
(1)
(2)
(3)
Allows for installation of all meters across the waterfront facilities at the Port of Seattle.
Potential for decreased cost as work will be done all at once.
Design process will be longer, and delay start of installation.
Does not allow for prioritization of facilities. May result in not meeting city and state
energy reporting requirements.
Increased risk on design issues being compounded across all facilities. By doing
everything in one design and construction contract, lessons learned cannot be easily
developed and implemented in future phases.
This is not the recommended alternative.
Alternative 3 - Install smart meters in phases over multiple years.
Pros:
(1)
(2)
(3)
(4)
Cons:
(1)
(2)
Allows for prioritizing facilities to meet city and state reporting requirement deadlines.
Allows for implementation of lessons learned from one set of meters to the next.
Allows for changing design approach in future years of meter installation to adapt to
changes in technology and other conditions.
Allows for more time to develop better designs for non-time critical meters.
Potential for increased cost due to work being done by potentially different contractors
over a series of years.
Increase in Port of Seattle overhead as there will need to be multiple designs developed.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
COST ESTIMATE
Original estimate
Current Change
Revised estimate
AUTHORIZATION
Capital
Expense
Total
$3,300,000
$0 $3,300,000
$(800,000)
$0
$(800,000)
$2,500,000
$0 $2,500,000
Previous authorizations
$125,000
$0
$125,000
Current request for authorization
$350,000
$0
$350,000
Template revised June 27, 2019 (Diversity in Contracting).
COMMISSION AGENDA - Action Item No. 8f
Meeting Date: September 10, 2024
Total authorizations, including this request
Remaining amount to be authorized
Page 6 of 6
$475,000
$2,025,000
$0
$0
$475,000
$2,025,000
Annual Budget Status and Source of Funds
This project was included in the 2024 Capital Plan under Smart Electric Meters (C801269) at an
estimated total project cost of $10,883,000. This project is included in the draft 2025 Capital Plan
under Waterfront Smart Meters (C801269) with a total estimated project cost of $13,404,000 to
install all needed smart meters.
This project will be funded by the General Fund.
Financial Analysis and Summary
Project cost for analysis
Business Unit (BU)
Effect on business
performance (NOI after
depreciation)
IRR/NPV (if relevant)
CPE Impact
$2,500,000 (Phase I only)
Waterfront Portfolio Management, Cruise Operations, Marine
Maintenance, and
Ship Canal Fishing & Operations
Annual depreciation expense will increase by approximately
$83K based on estimated 30-year service life for meters
installed under Phase 1 of the Smart Meter Program.
NA
NA
ADDITIONAL BACKGROUND
n/a
ATTACHMENTS TO THIS REQUEST
(1)
Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None
Template revised June 27, 2019 (Diversity in Contracting).