Date of Meeting: November 7, 2017 Item No.: 4D_Supp PROJECT AUTHORIZATION FOR PARCEL 77 AUTO TERMINAL DEVELOPMENT
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1 Date of Meeting: November 7, 2017 Item No.: 4D_Supp PROJECT AUTHORIZATION FOR PARCEL 77 AUTO TERMINAL DEVELOPMENT
2 Project Authorization As referenced in NWSA Resolution No , Exhibit A, Delegation of Authority Master Policy, Paragraph 8.c.iii., states project costs exceeding $300,000 require approval from Managing Members. Request project authorization in the amount $1,000,000, for a total authorized amount not to exceed $1,165,500, for the Parcel 77 Development project, Master Identification No
3 Project Authorization RCW Competitive bidding requirements Exemptions allows the Managing Members, by resolution, to waive competitive bidding requirements for contracts for purchases, in this instance specifically for purchases involving special facilities or market conditions. Request approval of Resolution , waiving competitive bidding requirements per RCW (1)(b) and authorizing the Chief Executive Officer to contract directly with Transdevelopment Group for the specialty design of an auto terminal at Parcel 77 in the South Harbor. 3
4 Background In support of NWSA Strategic Business Plan, Goal 3A1, the Parcel 77 Auto Terminal Development project is part of a plan to facilitate new business opportunities for non-containerized cargo NWSA is currently under negotiations for a long term lease with Wallenius Wilhelmsen Logistics (WWL) for this terminal. WWL is a current NWSA customer and this terminal would be an expansion of their existing business with NWSA. 4
5 Background In April of 2017, the Port developed a 15% site design for an auto terminal with the capacity to stage 12,000 autos and 5 rail tracks to accommodate 60 railcar spots. The property will include an auto processing and support buildings that will be financed, designed and constructed directly by WWL. The new intermodal rail facility will connect to existing Tacoma Rail infrastructure on Taylor Way to the east and Alexander Avenue to the west. This request is to advance design to develop a construction cost estimate and enter into a lease with WWL. 5
6 Blank page for aerials or images
7 Project Description and Details The scope of the project includes surface improvements for the storage and processing of autos, rail infrastructure, truck loading and security. Building demolition and relocation of East Blair-1 customer service facilities Surface improvements including grading, Hot Mix Asphalt (HMA) pavement and pavement striping and marking Stormwater conveyance and treatment systems New outfall to the Blair Waterway Temporary pump station pending new outfall permitting and construction Railway track work and special track work Site utilities for the buildings (by others) including power, gas, water and sanitary sewer Site lighting, fencing, gates and security. 7
8 Project Description and Details Scope of Work for This Request: Project management and coordination Advancement of design to the 90% level of completion Environmental permitting Construction Engineer s Estimate 8
9 Source of Funds The total estimated cost of the Design for this project is $1,165,500. If the cost of this estimate is anticipated to exceed the authorized amount the potential tenant has agreed to reimburse for the amount exceeding the authorized amount of $1,165,000 The target cost for this project is $35,000,000 The Capital Investment Plan allocates $1,165,000 for this project. 9
10 Financial Summary Item Budget Estimate Cost to Date Remaining Cost DESIGN $1,165,000 $77,524 $1,087,476 10
11 Economic Investment/Job Creation Once opened the auto facility will create an additional 107 Full Time Equivalent (FTE) jobs. This is in addition to the 61 already created at the East Blair-1 terminal in support of the WWL Ocean High and Heavy Business. Wallenius Wilhelmsen Logistics (WWL) plans to invest approximately $12,000,000 in auto processing and other support buildings. 11
12 Risks Design Costs: The funds which are the subject of the request are at-risk and not recoverable if the project does not proceed through construction in accordance with the pending term lease agreement. The customer s strong interest in this site combined with the general utility of the design work products (for similar occupancies) mitigate this risk. 11/3/
13 Conclusion Request project authorization in the amount $1,000,0000, for a total authorized amount not to exceed $1,165,000, for the Parcel 77 Development project, Master Identification No Request approval of Resolution , waiving competitive bidding requirements per RCW (1)(b) and authorizing the Chief Executive Officer to contract directly with Transdevelopment Group for the specialty design of an auto terminal at Parcel 77 in the South Harbor. 13
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