PORT OF SEATTLE

MEMORANDUM

COMMISSION AGENDA Item No.

Date of Meeting

August 11, 2009

DATE: July 10, 2009

TO: Tay Yoshitani, Chief Executive Officer

FROM: Stephanie Jones Stebbins, Senior Manager, Seaport Environmental Programs

Kathy Bahnick, Environmental Program Supervisor, Seaport Environmental

Programs

SUBJECT: Four Professional Services Contracts that Support Investigations for the Lower

Duwamish Waterway (LDW) and Harbor Island superfund sites.

ACTION REQUESTED:

This memorandum requests Port Commission approval for the Chief Executive Officer to

execute amendments to the following professional service contracts that support the

investigations at the above mentioned sites. This request is to increase the duration and

maximum dollar amounts of the contracts, in order to continue the ongoing work in support of

the following Superfund investigations: Lower Duwamish (LDW) Remedial Investigation (RI)

and the Feasibility Study (FS); T117

Engineering Evaluation/Cost Analysis (EE/CA); and the

East Waterway

(EWW) supplemental Remedial Investigation and Feasibility Study (sRI/FS).

The contracts listed below are all part of this request:

 Windward Environmental LDW RI P-00305189

 AECOM LDW FS P-00314929

 Anchor Environmental EWW sRI/FS P-00313669

 Windward Environmental T117 EE/CA P-00309966

The amendments are necessary to provide for additional time and money in the contracts needed

to complete the various investigations that the consultants have been hired to perform. The

amendments exceed 50 percent of the accumulative value of the initial contracts, and, in

accordance with RCW 53.19.060, this memo constitutes notification to the Commission.

T117 is one of the early action areas for the Lower Duwamish Superfund site.

The East Waterway (EWW) is an operable unit of the Harbor Island Sediments Superfund site

COMMISSION AGENDA

T. Yoshitani, Chief Executive Officer

July 10, 2009

Page 2 of 8

BACKGROUND

For the EWW, LDW and T117 investigations, the Port functions as the contracting agent for a

group of potentially responsible parties (PRPs) ( i.e. governments and private parties that signed

on to the Administrative Orders) under cost sharing agreements that were approved by

Commission. The contracts support the investigative work required under Administrative Orders

(AOCs) that the Port and the other PRPs have signed with the U.S. Environmental Protection

Agency (EPA). The Commission authorized the signature of each of these AOCs via separate

actions.

Each AOC contains a general outline of a scope of work. The scope of work for each contract is

tied to the general scope of work that is required by the AOC. However, most of the specific

defined tasks were identified later, during the stages of workplan development and data gaps

identification, which occurred after the consultant was hired to perform the general scope.

The work on these four contracts is still ongoing, and any proposal to change consultants would

need to be coordinated and jointly approved by our partners, who have approved the use of the

current consultants, and who are also bound by the stringent deadlines imposed in the AOC.

SYNOPSIS

These four contracts support Superfund projects managed under the environmental reserve

program. These contracts were entered into before CPO-1 was passed, and for the most part, the

associated Commission memos and Request for Qualifications were silent on the length of time

or dollar amount needed to perform the work. The procurements were structured as requests for

qualifications due to the nature of supporting work on Superfund sites. That is, the consultants

were selected based on their qualifications and experience in this type of work.

Because these complex investigations occur in phases that are sequentially negotiated and

approved by the regulatory agencies, the full cost of any particular stage of work is not known

until the previous stage of the work has been approved. In the past, we have managed this

uncertainty through a two step process: annual Commission review of the project budgets, and

annual Commission authorization to renew the contracts (through the environmental reserve

programmatic authorization process).

To bring these procurements in line with current procedures and avoid the problems associated

with the annual renewal of contracts, Port staff recommends that we manage these contracts in a

new way that is consistent with Resolution No. 3605 and CPO-1. With Commission approval,

these contracts will be amended to reflect the full cost and time needed to complete the entire

scope of work of the investigation, using best current estimates. The work performed through

COMMISSION AGENDA

T. Yoshitani, Chief Executive Officer

July 10, 2009

Page 3 of 8

these contracts will be managed through individual service directives which will be tied to the

approved budget for individual projects/sites.

Seaport Environmental consulted with CPO to determine whether these contracts could be

extended. After reviewing the procurement files, CPO concurs with this request.

LDW Remedial Investigation, P-00305189 (Windward Environmental)

This contract was procured in 2000. The solicitation document did not specify a dollar value

limitation or time limitation. The scope of work was to provide advice and assistance related to

federal superfund and sediment clean up in the Duwamish Industrial Waterway and Elliot Bay.

The scope also includes work to review and comment on changes to regulations affecting

contaminated sediments, and evaluation of contaminated sediments.

The Port anticipates that the work will be completed by 2012, when EPA issues a Record of

Decision (ROD). The consultant has produced both the draft and draft final Remedial

Investigation (RI). Work remaining is to finalize the RI and to perform any new RI tasks

requested by EPA or Ecology through Record of Decision (ROD) negotiations. The majority of

work on this contract has been completed. We propose to increase the total contract amount by

only 3%, but it is important to have the consultant on-board through the ROD to make any

changes to the RI as required by the agencies.

Accordingly, staff is requesting authorization to extend the current contract until December 2012

and add $0.5 Million to complete the RI.

LDW Feasibility Study, P-00305189 (AECOM)

This contract was procured in 2004. The scope of work included completing the LDW FS, from

developing the work plan to preparing the final FS document. The solicitation document did not

specify a dollar value limitation or time limitation.

The Port authorized work to begin in April of 2004. The Port anticipates that the work will be

completed by 2012 when the ROD for the Lower Duwamish Waterway Superfund site is

reached. The consultant has produced the Draft FS. The remaining work consists of producing

the 2

and final drafts of the FS, as well as any additional FS tasks required by the agencies

through ROD negotiations.

Accordingly, the Port is requesting authorization to extend the current contract until December

31, 2012 and add $7.019 Million to complete the FS, for a total of $13.5M.

COMMISSION AGENDA

T. Yoshitani, Chief Executive Officer

July 10, 2009

Page 4 of 8

East Waterway sRI /FS, P-00313669 (Anchor Environmental)

This contract was procured in 2006. The scope of work includes all work to complete the East

Waterway RI/FS, including developing a work plan and completing the sRI/FS and ROD

negotiation. The solicitation document did not specify a dollar value limitation and indicated that

the remedial investigation would be completed in 2009.

This work is ongoing and the consultant is still performing services related to the East Waterway

RI/FS. The scope of work for this project is driven by the EPA and has taken more time and

effort than was originally anticipated. Currently, we anticipate an EPA ROD in 2012.

Accordingly, the Port is requesting authorization to extend the current contract until December

31, 2013 and add $4.3 Million to complete the sRI/FS.

T117, P-00309966 (Windward Environmental)

This contract was procured in 2003. The scope of work was to perform all work necessary in the

draft statement of work for T117, including data gap analysis, biological assessments, draft and

final EE/CA, and design and long-term monitoring for the non-time critical removal action. The

general scope has not changed, but has become better defined through negotiations with the

EPA. The solicitation document did not specify a dollar amount. Regarding timeframe, the

solicitation indicated that the goal was to implement the removal activity beginning in 2004, or

as otherwise approved by the EPA.

The Consultant is still performing services related to the T117 EE/CA, including recent data gap

efforts, draft EE/CA comment and review and final EE/CA production.

Accordingly, the Port is requesting authorization to extend the current contract until December

31, 2011 and add $0.75 M to the contract.

COMMISSION AGENDA

T. Yoshitani, Chief Executive Officer

July 10, 2009

Page 5 of 8

PROJECT SCOPE OF WORK AND SCHEDULE

Current Status

Site Phase of

Work

Joint Consultant Current

Contract

Amount

(Millions)

Contract

Start Date

Current End

Date

Lower

Duwamish

RI Yes Windward

Env.

$17.869 3/2000 12/31/2009

Lower

Duwamish

FS Yes AECOM –

ENSR

$6.481 4/2004 12/31/2009

East Waterway sRI/FS Yes Anchor Env. $7.200 11/2006 12/31/2009

T117 EE/CA Yes Windward

Env.

$2.650 5/2003 12/31/2009

Proposed Changes

Site Phase of

Work

Consultant Proposed

Increase

Proposed

Amended Not

to Exceed

amount

(Millions)

Proposed End

Date

Lower

Duwamish

RI Windward Env. $0.5 $18.369 12/31/2012

Lower

Duwamish

FS AECOM –

ENSR

$7.019 $13.5 12/31/2012

East Waterway sRI/FS Anchor Env. $4.3 $11.5 12/31/2013

T117 EE/CA Windward Env. $0.75 $3.4 12/31/2011

ALTERNATIVES CONSIDERED/RECOMMENDED ACTION

1. Undertake a full procurement process to enter into a series of Category III contracts to

replace the four existing contracts. The problem with this alternative is that these

projects, as well as the originally solicited scopes of work, are all midway through, the

consultants in place are deeply familiar with all of the studies and the draft reports (they

have produced). Replacing the contracts to take over investigations, studies and analysis

that are mid way in progress would create significant problems with getting the work

COMMISSION AGENDA

T. Yoshitani, Chief Executive Officer

July 10, 2009

Page 6 of 8

done. It would almost certainly result in a failure to meet regulatory deadlines. This

approach could result in leaving the Port open to an EPA enforcement action. This could

also cause problems with our cost sharing partners, as it also could open them up to

enforcement action, and they might balk at the additional cost to procure and bring new

consultants up to speed on the projects. This is not the recommended alternative.

2. Modify the existing contracts as identified in this memo. This is the recommended

alternative.

3. Conduct the activities using Port resources, without outside consultant assistance. There

are insufficient staff resources and expertise to conduct these environmental management

tasks without consultant and laboratory support. Under the existing MOAs, our partners

have to agree on the consultant performing this work. It is highly likely that they would

not accept this approach. This is not the recommended alternative.

FINANCIAL IMPLICATIONS

Cost Estimate

The cost estimates for the contract extensions are based on current knowledge of the sites and

regulatory comments. The estimates may increase due to regulatory requirements for additional

investigation or analysis. The requested extension of these contracts will not increase project

costs.

Source of Funds

Funds for the expenditure required will come from the Environmental Reserves.

ENVIRONMENTAL SUSTAINABILITY/COMMUNITY BENEFITS

Elimination of unacceptable levels of environmental risk caused by the presence of contaminants

in soil, groundwater and sediment is not only required by state and federal law, it is the hallmark

of responsible environmental stewardship, from the perspectives of both the surrounding

communities and the customers that we serve. These detailed studies are the critical first step in

creating a cleanup plan approved by EPA and Ecology for cleanup of these sites.

PREVIOUS COMMISSION ACTION

Since 1993 the Port Commission has, through a series of commission actions and annual project-

wide authorizations, authorized expenditures under Environmental Reserves funding sources to

perform the actions described above.

COMMISSION AGENDA

T. Yoshitani, Chief Executive Officer

July 10, 2009

Page 7 of 8

On August 24, 1999, the Port Commission approved the purchase and sale agreement for the

acquisition of the Malarky Asphalt Property at a cost of $176,400 and implementation of

required environmental cleanup measures on adjoining Port property at a cost not to exceed

$800,000.

On March 14, 2000, the Port Commission approved the 1) expenditure of $1,000,000 in funds

which had been previously reserved for aquatic sediment management; and 2) the Managing

director, Marine Division, to enter into a contract with Windward Environmental Inc. to provide

a variety of services to assist the Port in participating in the development and implementation of

federal and state laws and regulations relating to the disposition of contaminated aquatic

sediments.

On June 12, 2001, the Port Commission authorized 1) expenditure of $750,000 in funds

previously reserved for aquatic sediment management; and 2) Managing Director, Seaport

Division, to execute an Administrative Order on Consent (AOC) with the Environmental

Protection Agency (EPA) for additional sRI/FS work in the East Waterway portion of the Harbor

Island Sediments Superfund site and revise the existing contract with Windward Environmental,

Inc. to provide a variety of services to assist the Port in responding to the AOC.

On June 11, 2002, the Port Commission approved to spend $1,500,000 previously reserved for

aquatic sediment management and to revise the existing contract with Windward Environmental,

Inc to provide services required by the Environmental Protection Agency’s Order on Consent to

continue work on the Lower Duwamish Sediments Superfund site and the East Waterway

Sediment Operable Unit of the Harbor Island Superfund Site

On August 24, 2004, the Port Commission approved execution of the Memorandum of

Agreement between the Port and the City of Seattle for Malarky Early Action Area.

On October 11, 2005, the Port commission approved execution of: 1) Administrative Settlement

Agreement and Order on Consent for Removal Action T-117 Early Action Area; and, 2)

Administrative Settlement Agreement and Order Consent for the T-117 Upland Investigation.

On March 14, 2006, the Port Commission approved executing the Memorandum of Agreement

between the Port, the City of Seattle and King County to perform the East Waterway Operable

Unit of the Harbor Island Superfund sitesRI/FS.

On June 27, 2006, the Port Commission: 1) approved execution of Administrative Settlement

Agreement and Order on Consent for Time Critical Removal Action in the T-117 Upland Area;

2) directed staff to develop a work plan to expand the cleanup options in the T-117 Upland area

and 3) amended the 2006 project-wide authorization expenditure in the amount of $6,000,000.

COMMISSION AGENDA

T. Yoshitani, Chief Executive Officer

July 10, 2009

Page 8 of 8

On July 25, 2006, the Port Commission approved the CEO to execute the Administrative

Settlement Agreement and Order on Consent for an sRI/FS for the East Waterway Operable Unit

of the Harbor Island Superfund site issued by the United States Environmental Protection

Agency.

On September 25, 2007, the Port Commission authorized the CEO to: 1) approve the amended

Statement of Work to the Administrative Settlement Agreement and Order on Consent for

Removal Action T-117 Early Action Area (issued by the EPA, December 2005); and 2) execute

the First Amendment to the Memorandum of Agreement with the City of Seattle regarding cost-

sharing to conduct this Work