Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
3d
ACTION ITEM
Date of Meeting
July 23, 2019
DATE: July 23, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Kathy Bahnick, Manager Environmental Programs
Jon Sloan, Senior Environmental Program Manager
Ticson Mach, Capital Project Manager
SUBJECT: Terminal 117 Habitat Restoration and Duwamish Shoreline Access Project
Procurement of General Contractor/Construction Manager (GC/CM)
ACTION REQUESTED
Request Commission authorization for the Executive Director to advertise and execute a
contract with General Contractor/Construction Manager (GC/CM) “Heavy Civil,” to assist with
completion of design and permitting work associated with the Terminal 117 Habitat Restoration
and Duwamish Shoreline Access Project (the “Project”). No funding is requested as part of this
authorization since the work is covered under an existing design and permitting authorization
approved June 7, 2011.
EXECUTIVE SUMMARY
The primary purpose of the Project is to rehabilitate ecological functions and restore priority
habitat for Chinook salmon and other imperiled species in the Lower Duwamish Waterway. The
constructed Project will create upland habitat and aquatic areas with a combined total of
approximately 13.5 acres and approximately 2,050 linear feet of shoreline (from Lower
Duwamish River Mile 4.1 to 4.5). The Project will create mitigation credits, including for use in
natural resource damage (NRD) settlements associated with the Lower Duwamish Waterway,
Harbor Island, East Waterway, West Waterway, and Lockheed West Superfund sites, which can
be used by the Port or sold to generate revenue for future restoration efforts.
A component of the Project will also provide high-quality public shoreline access in the South
Park neighborhood, an environmental justice community. Public shoreline access features will
include a viewpoint pier, trails, seating, interpretive signage, bike racks, and public art. These
features have been designed in close coordination with the surrounding community and the
community is very excited about the Project. The public access component of the Project also
fulfills the requirements of prior TIGER grant funding and City of Seattle public shoreline access
requirements associated with the Master Use Permit for Terminal 46.
COMMISSION AGENDA – Action Item No. _3d_ Page 2 of 5
Meeting Date: July 23, 2019
Template revised September 22, 2016; format updates October 19, 2016.
The Port will negotiate a maximum allowable construction cost (MACC) with the GC/CM by
April 2020. The MACC determination, if acceptable to the Port, will be used to support a
request for construction funding approval from the Commission in April 2020, after all
necessary regulatory and legal requirements have been met. Construction would then
commence in in June 2020.
Construction of the Project is contingent on approval and finalization of a credits banking
agreement, currently anticipated in Fall 2019. Construction funding will be requested from
Commission once a banking agreement is reached and an acceptable MACC determination is
received.
JUSTIFICATION
In 2009, the Commission adopted the Lower Duwamish River Habitat Restoration Plan
(LDRHRP). The purpose of the Plan was to identify objectives and opportunities for habitat
restoration on Port-owned properties along the river while supporting water dependent and
water-related business uses. The T-117 site was identified as Site 23 in the LDRHRP. Site 25
was added to the Project with Commission approval in 2011.
In addition to regulating Superfund cleanups, CERCLA creates liability for damages to natural
resources caused by “releases of hazardous substances” into the environment. EPA administers
the remediation of Superfund sites, but is not responsible to bring NRD liability claims. That
task falls to the Natural Resource Trustees (Trustees), who are designated federal, state and
tribal government entities that have management responsibility for fish and wildlife and other
resources that may have been damaged by releases of hazardous substances at a cleanup site.
Potentially responsible parties generally reach settlement agreements with the Trustees by
making a cash payment, restoring habitat through a Trustee-approved project, or buying
“habitat credits” from a third party “bank” with an accredited restoration project. Although
Trustee approval is still pending, the number of settlement “credits” available from the Project
has been determined by the Trustees and it has been submitted for approval as a habitat
credits bank.
No funding is requested as part of this authorization since the preconstruction contract is
funded under the existing design and permitting authorization approved in June 2011. Funding
authorization for construction work will be requested after a banking agreement is executed
and an acceptable MACC determination is received.
Diversity in Contracting
The project team is working with the Diversity in Contracting Department and Central
Procurement Office to include the WMBE aspiration goal into the solicitation and will include an
inclusion plan in the selection process.
COMMISSION AGENDA – Action Item No. _3d_ Page 3 of 5
Meeting Date: July 23, 2019
Template revised September 22, 2016; format updates October 19, 2016.
DETAILS
Scope of Work
The scope consists of:
(1) Advertise to procure GC/CM “Heavy Civil” Contractor
(2) Complete design and permitting with assistance of GC/CM
(3) Negotiate project MACC for construction funding authorization
Schedule
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1: Do not proceed with GC/CM procurement until a habitat banking agreement
for the Project is executed and signed by all parties.
Cost Implications: Delay of construction of the Project could result in significant cost increases
associated with construction cost escalation, sheet-pile wall removal (which would be required
by EPA if the Project is not constructed), and risks to meet TIGER grant requirements. This
would result in at least a $1 million increase in project costs and risk of having to return some
portion of the TIGER grant.
Pros:
(1) Provides certainty that bank credits will be recognized before moving forward.
Cons:
(1) Due to in-water construction constraints, if the Project is not ready to proceed in May
2020, the next potential construction date would not be until May 2021. Further delay
in the Project means further delay in restoring much-needed Chinook habitat in the
Lower Duwamish and delivering an important South Park community project
(2) Removal of the existing sheet-pile wall could be required by EPA, and re-installation
would be necessary at a later date for construction shoring to complete the Project,
costing approximately $1 million.
(3) TIGER grant funding is at risk if the Project is not completed.
(4) Construction costs escalate with time at +/-5% annually.
This is not the recommended alternative.
Commission Authorization for GC/CM Procurement
July 2019
Advertise and Award
July -January 2020
Finalize Design/Complete Negotiation of MACC
January-April 2020
Commission Authorization for Construction Funding
April 2020
Authorize GC/CM to initiate construction
May 2020
COMMISSION AGENDA – Action Item No. _3d_ Page 4 of 5
Meeting Date: July 23, 2019
Template revised September 22, 2016; format updates October 19, 2016.
Alternative 2: Move forward with a two-phase GC/CM contract without an executed banking
agreement.
Cost Implications: Funding has already been authorized for tasks to complete design and
permitting for the Project; with this contract, approximately $300,000 in Phase 1 GC/CM will be
spent. Construction funding will subsequently be requested if the GC/CM presents an
acceptable MACC and a banking agreement is finalized.
Pros:
(1) Project permitting will be completed and the Project will be shovel-ready.
(2) Avoids construction cost escalation associated with delay to the extent possible.
(3) Avoids removing and reinstalling the temporary sheetpile wall.
(4) Maintains compliance with TIGER grant.
(5) Meets community expectations.
(6) Furthers Port’s commitment to Orca Task Force recommendations.
(7) Continues progress on Century Agenda goal to create 40 additional acres of habitat in
the Green-Duwamish watershed.
Cons:
(1) Final construction of Project and credits banking mechanism remains uncertain until
banking agreement is finalized, which will likely not occur until after GC/CM
procurement (but prior to construction funding authorization).
(2) Moving forward with a GC/CM contract which is predicated on execution of a future
banking agreement entails some risk. Deciding not to move forward with the
construction phase once the GC/CM has assisted with design and cost estimation, is
not desirable to the contractor and could create conflict.
This is the recommended alternative.
BUDGET STATUS AND SOURCE OF FUNDS
The funding for GC/CM procurement is covered under the existing design and permitting
authorization for the project approved in June 2011. The project is associated with
Environmental Remediation Liability (ERL) funding.
Financial Analysis and Summary
NA
Maritime
N/A
N/A
N/A
COMMISSION AGENDA – Action Item No. _3d_ Page 5 of 5
Meeting Date: July 23, 2019
Template revised September 22, 2016; format updates October 19, 2016.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
March 26, 2013: Commission authorization for the Chief Executive Officer to: 1) purchase
southern portion of the South Park Marina float structure to accommodate habitat
restoration in the estimated amount of $194,000; and 2) complete permitting, and design
for a public access viewpoint pier at Site 23 for an estimated cost of $458,000
June 07, 2011: Commission authorization for the Chief Executive Officer to: 1) Complete
permitting and design of an expanded fish and wildlife habitat restoration project at
Terminal 117 (T-117) for an estimated cost of approximately $3,021,000; and 2) execute a
contract for outside professional services to complete the permitting and design of the
habitat restoration project at T-117.
July 7, 2009: Commission adopted the Lower Duwamish River Habitat Restoration Plan, an
inventory of Port of Seattle Properties.
October 27, 2008: Commission approved entering into a Settlement Agreement with the
Malarkey Parties, the Duwamish Parties, the City of Seattle and King County regarding T-117
Site and Lower Duwamish Site Cleanup Costs, and Natural Resource Damage Liability.
May 13, 2008: Commission approved entering into a MOA with the Elliott Bay Trustee
Council for crediting habitat restoration projects in and near the LDW relating to future
settlement of natural resource damages claims; for execution of a professional services
agreement for environmental review and application of permit authorizations; and to
prepare plans and specifications for design and permitting of a fish and wildlife habitat
restoration project at T-117 under the MOA, for a total authorized expenditure of $210,000.