Resources Marketing SERVICE CENTERS FACILITIES MASTER PLANNING INITIATIVE Bernie O’Donnell, Director Utility Support Services Division

Conserving Energy for a Sustainable Future SEATTLE CITY LIGHT FACILITIES OVERVIEW City Light manages over 127 major facilities totaling approximately 1.3M BSF within its service area and power production remote sites including: 14 Major Substation Sites 2 Company Towns 8 Hydroelectric Generating Powerhouses Office leasing space th Avenue Building SMT Building 2 Service Centers North Service Center South Service Center Utility Support Services Division 1

Conserving Energy for a Sustainable Future 2 Utility Support Services Division The service centers form the backbone of City Light’s operations directly impacting the mission to provide reliable, low-cost power to customers. Mission essential functions are located in the service centers including line trucks and dispatching, materials and equipment, shipping and receiving, staging of supplies, shops operations and fabrication to support power generation, transmission and distribution work. Built in the 1950s and 1920s respectively, City Light’s North and South Service Centers have exceeded their intended operational lifespans Building systems are aging and increasingly unreliable Service yard areas are constrained and highly congested Little opportunity to accommodate growth or reconfiguring to meet changing needs Additionally, the South Service Center sits in an area of Seattle that has a high susceptibility to soil liquefaction during an earthquake which has significant impacts to continuity of operations following an earthquake SERVICE CENTER CHALLENGES – NEED FOR MASTER PLANS

Conserving Energy for a Sustainable Future 3 Utility Support Services Division 1.A master planning effort is underway to address long term operational efficiencies of City Light’s North and South Service Centers Both North and South Service Centers form the backbone of City Light’s operations. Built in the 1920’s and 1950’s, the North and South Service Centers have exceeded their intended operational lifespan. Neither location operates effectively for optimal efficiencies. 2.An alternative risk mitigation effort is underway to address structural improvements to the South Service Center Ensure continuity of operations following a major seismic event. SCL Owned North Service Center Residential Neighborhood Park Retail Commercial NORTH SERVICE CENTER VICINITY MAP

Conserving Energy for a Sustainable Future 4 Utility Support Services Division SOUTH SERVICE CENTER VICINITY MAP

Conserving Energy for a Sustainable Future MISSION/GOALS OF SERVICE CENTER MASTER PLANNING 5 The planning process will result in the identification of a preferred long term master plan that meets the following mission/goals: Evaluation Criteria    Reliable Essential functions out of liquefaction zone Responsive More distribution of functions across service area Efficient Streamlined organization & staffing Neighborhood Reduced impact to residential zones Cost Land / design / entitlement / construction Utility Support Services Division

Conserving Energy for a Sustainable Future SOUTH SERVICE CENTER INTERIM RISK MITIGATION 6 The South Service Center is located in an area that has a high susceptibility to liquefaction in the event of a high magnitude earthquake. South Service Center Seismic Hazard Map Source: USGS Utility Support Services Division

Conserving Energy for a Sustainable Future SEISMIC RISKS AND MITIGATION COSTS AT SO. SERVICE CENTER 7 SSC Asset Existing Market Value Full Replacement Cost Damage Replacement (50%) Facilities/Site$28.6M$220.0M$170.0M Mobile Equipment$50.5M$ 55.6M$ 27.8M Materials Stock$40.0M$ 46.0M$ 23.0M Totals: $119.1M$321.6M$220.8M Utility Support Services Division A 6.5 magnitude earthquake or greater in Seattle has a 10-15% likelihood of occurring in the next 50 years. This is assumed to result in a total loss for SSC operations. Estimated to be 4 years before full operations are re-established. 1-3 months estimated duration to resume any operations at the SSC. Significant inventory of transformers, cable reels, fleet line trucks, aerial lift trucks, shops machinery, and other equipment would be damaged beyond immediate use.

Conserving Energy for a Sustainable Future SERVICE CENTER PLANNING OPTIONS UNDER CONSIDERATION A.Seismic Upgrade only to the South Service Center building structures and critical portions of the service yard to maximize continuity of operations following a major seismic event. Estimated Cost: $90M B.Replace South Service Center – moves all existing functions at SSC to a new service center outside the seismic liquefaction zone and some functions from the NSC to a new service center. The South Service Center would be repurposed, or sold. Estimated Cost: $350M C.Single Large Service Center – relocates all functions from the existing NSC and SSC to a new single, large service center in a central location to City Light’s service area. Estimated Cost: $450M 8 Utility Support Services Division

Conserving Energy for a Sustainable Future NEXT STEPS 1.Provide funding to address Specific Seismic Liquefaction concerns at SSC. Capital costs of $90M are included in the initiative beginning in 2019 ($41.3M) and 2020 ($48.7M), and work would be sequenced to minimize disruption to service center operations. Essential seismic upgrades would occur to South Service Center structures, building systems and five acres of service yard, including egress routes. 2.Continue to develop design options that best respond to the goals and evaluation criteria for review and consideration. If a master planning development decision includes vacating the South Service Center, the funding request for 2019 and 2020 for seismic upgrades would be withdrawn and the funding could be put towards development project implementation. 9 Utility Support Services Division

Conserving Energy for a Sustainable Future 10 Utility Support Services Division QUESTIONS?