Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
6i
ACTION ITEM
Date of Meeting
February 26, 2019
DATE: February 19, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Elizabeth Black, Senior Port Counsel
SUBJECT: Kaiser Gypsum Bankruptcy Settlement
ACTION REQUESTED
Request Commission authorization for the Executive Director to enter into a settlement
agreement with Kaiser Gypsum Co., Inc. (Kaiser) to resolve claims in bankruptcy related to the
cleanup of the Lower Duwamish Waterway (LDW).
SUMMARY
Kaiser is a potentially responsible party potentially liable for contamination in the LDW as a
result of its historic operations. Kaiser declared bankruptcy in 2014. As part of the bankruptcy
proceeding, there is an opportunity for the Port to recover a small portion of its past costs
(approximately $162,763) related to the investigation and cleanup of contamination for which
Kaiser may have been responsible. Commission approval is required because the total amount
of the Port’s claim is greater than $300,000.
Counsel recommends approval of the settlement agreement because the benefits of settlement
at this time outweigh the costs of pursuing the Port’s claim further. Further details will be
presented by counsel in executive session on February 26, 2019. A draft settlement agreement
is attached.
ATTACHMENTS TO THIS REQUEST
(1) Draft Settlement Agreement
