Template revised April 12, 2018.
COMMISSION
COMMISSION
AGENDA MEMORANDUM
Item No.
8f
ACTION ITEM
Date of Meeting
February 26, 2019
DATE: January 25, 2019 (Corrected March 7, 2019)
TO: Stephen P. Metruck, Executive Director
FROM: Sandra Kilroy, Director Maritime Environment and Sustainability
Kathy Bahnick, Senior Manager, Remediation Programs
Roy Kuroiwa, Senior Environmental Program Manager
SUBJECT: South Park Marina – Ecology Order and Cost Sharing Agreement
Amount of this request:
$0
Total estimated project cost:
$ 1,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) sign an order with the
Washington State Department of Ecology (Ecology) to complete a Remedial Investigation (RI) at
the South Park Marina (adjacent to the Port’s Terminal 117 in the south Seattle neighborhood
of South Park); and (2) sign a Potential Liable Party (PLP) Cost Sharing Agreement between the
Port, South Park Marina owners, and the City of Seattle to share the costs for the performance
of the scope of work required by Ecology’s order and agency oversight costs. There is no
funding requested for this authorization.
EXECUTIVE SUMMARY
The South Park Marina (SPM) site is adjacent to the Port’s Terminal 117 property. The property
is known to have contamination (e.g., metals, PCBs, and petroleum) in soil and groundwater.
Ecology is requiring three parties – South Park Marina, the Port, and the City of Seattle to jointly
investigate the extent and nature of contamination at the site.
The Port, marina, and City are identified as potentially liable parties (PLPs) due to ownership,
operation, or responsibility for release of contaminants during periods between the 1940s and
today. The three PLP parties will share responsibility to perform the requirements of the
Ecology Order. Funding for this work was included in the port’s 2019-2023 Environmental
Remediation Liability (ERL) Program.
The draft Ecology order and project fact sheet were available for Public Comment between
12/10/18 and 1/23/19. In November 2018, the three PLPs presented the project to the South
Park Neighborhood Association and they indicated they are ‘on board’ with the planned work.
COMMISSION AGENDA – Action Item No. 8f Page 2 of 5
Meeting Date: February 26, 2019 (Corrected March 7, 2019)
Template revised September 22, 2016; format updates October 19, 2016.
We also engaged with the Duwamish Valley Environmental Justice Pilot partners about the
project. No public comments or concerns have been received.
JUSTIFICATION
The Port’s participation supports the Century Agenda goal of being the greenest Port, and
reinforces our commitment of being a responsible steward of community resources and the
environment. It also supports the emerging strategic focus on social equity by moving the
cleanup forward for a site located in the environmental justice community of South Park. The
Ecology Order is a binding agreement to perform site environmental investigation work by the
Port (and Marina owner and the City). The work required by the order will include direct costs
for consulting and laboratory fees in excess of $300,000. Therefore, signing the Ecology order
requires Commission authorization. The project will formally initiate the process of determining
upland site cleanup or source control efforts at the marina to meet EPA and Ecology’s source
control requirements as related to the larger Lower Duwamish Waterway Superfund Site. The
project will also help identify who (Port, City, or Marina) has responsibility for the follow-on
work and will help determine the relative shares of cleanup liability.
DETAILS
The Port has been identified as a Potentially Liable Party (PLP) at the SPM site because the Port
owned a small, upland parcel within the SPM property between 1959 and 1970. On that parcel,
the A&B Barrel Company operated as a drum reconditioning business between 1946 and 1961.
The City is a PLP based on its connection to PCB disposal and track-out from the adjacent
Terminal 117 property. South Park Marina is a PLP based on its ownership and operation of the
marina. South Park Marina has operated at this location since the 1950s.
The City of Seattle will procure the environmental consulting firm to perform the work using
their public procurement process and will hold the contract with the consultant. All invoicing
and payables will be handled by the City, and the appropriate portion reimbursed by the South
Park Marina and the Port.
The Statement of Work (SOW) detailed in Ecology’s order requires that the PLPs perform a
Remedial Investigation (RI) for the project site. Although not anticipated, the order also
provides for any Interim Actions (i.e., hot spot removal or emergency response) should they be
necessary. The RI will include the collection and chemical analysis of soil, groundwater, and
stormwater samples to develop an environmental conceptual site model (CSM). The CSM will
enable Ecology and the PLPs to develop an appropriate plan for cleanup of the site and assign
responsibility for the cleanup. The order may be amended in the future to require additional
work by one or more of the PLPs.
COMMISSION AGENDA – Action Item No. 8f Page 3 of 5
Meeting Date: February 26, 2019 (Corrected March 7, 2019)
Template revised September 22, 2016; format updates October 19, 2016.
Scope of Work
The order’s SOW will be performed by a professional consulting firm hired jointly by the three
PLPs (Port, City, and Marina). As detailed in Exhibit B of the AO, the SOW is divided into four
major tasks:
(1) Task 1 – Remedial Investigation Work Plan
(2) Task 2 – Remedial Investigation (field sample collection and lab analysis)
(3) Task 2a – Source Control Review Memorandum
(4) Task 3 – Interim Action(s), if required
Schedule
The schedule of the required work associated with the Ecology order is as follows:
Activity
Q1 - 2019
Q3 - 2019
Q1/Q2 - 2020
Q2 - 2020
Q4 - 2020
Cost Breakdown
Port Portion of
consultant costs plus
staff costs
Remedial Investigation
$700,000
Port Management and Agency Fees
$300,000
Total
$1,000,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do Not Authorize Signature of the Ecology Order
Cost Implications: Ecology has advised that not signing the order would likely result in the
issuance of an enforcement order by Ecology, or Ecology could elect to perform this work itself
(i.e., contract the work to its support consultant). This would increase the Port estimated costs
by 1.5 to 2 times.
Pros:
(1) May delay the Port’s spending by a year or more while Ecology prepares an
enforcement order.
(2) May delay the work and costs while Ecology has to contract and perform the work
itself, then compels the Port to reimburse Ecology for its costs.
COMMISSION AGENDA – Action Item No. 8f Page 4 of 5
Meeting Date: February 26, 2019 (Corrected March 7, 2019)
Template revised September 22, 2016; format updates October 19, 2016.
Cons:
(1) Increased legal and staff time and efforts to respond to an enforcement order and
provide ancillary support to Ecology to carry out the order (gain access to the site, etc.)
(2) The ultimate costs of the work will be much higher if Ecology performs the work itself.
(3) Not performing this work could tarnish the Port’s reputation with Ecology and the
community as having a commitment to public health and being a steward of community
resources and the environment.
This is not the recommended alternative.
Alternative 2 – Authorize the Signing of the Ecology Order PLP (Partner’s) Agreement and begin
the required Scope of Work immediately
Cost Implications: Port’s portion of the work is estimated at $1,000,000, depending on the
findings during the work.
Pros:
(1) Complies with the order and furthers the Port’s collaborative working relationship
with Ecology and the South Park community.
(2) Takes the next step leading to the marina’s cleanup and long-term protection of
human health and the environment.
(3) Demonstrates the Port’s value of being a responsible steward of community resources
and the environment.
Cons:
(1) Costs of approximately $1,000,000 by the Port to complete the order’s Statement of
Work.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
There is no funding request as part of this authorization. Funding for the associated scope of
work and costs is included in the Port’s annual Environmental Remedial Liability (ERL)
authorization. Certain costs may also be eligible for insurance reimbursement. The three PLP
parties will share responsibility to perform the requirements of the Ecology Order and each will
initially contribute an equal amount, or 33%, toward the costs of the scope of work. Final
allocation of costs will be determined after more is known about the site.
ATTACHMENTS TO THIS REQUEST
(1) Draft Washington State Department of Ecology Agreed Order including Exhibit A – Site
Location Diagram and Exhibit B – Statement of Work and Schedule
(2) Draft PLP Cost Sharing Agreement between the Port of Seattle, City of Seattle, and
South Park Marina
COMMISSION AGENDA – Action Item No. 8f Page 5 of 5
Meeting Date: February 26, 2019 (Corrected March 7, 2019)
Template revised September 22, 2016; format updates October 19, 2016.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
November 13, 2018 – The Commission authorized (1) the Executive Director to spend
environmental remediation funds for 2019 in the amount of $17,025,000 and (2)
approved a five-year spending plan for $116,026,000 for the environmental remediation
liability (ERL) program for 2019-2023, of which an amount estimated not to exceed
$30,000,000 will be obligated during 2019 to be spent in future years.