Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
6a
ACTION ITEM
Date of Meeting
January 7, 2020
DATE: November 13, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Sandra Kilroy, Director Maritime Environment & Sustainability
Kathy Bahnick, Manager, Remediation Programs
Joanna Florer, Sr. Environmental Program Manager
SUBJECT: Terminal 91 – Sediment Remedial Investigation
Total estimated project cost:
$1,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) execute an Agreed Order
with the Washington State Department of Ecology to complete a sediment Remedial
Investigation at the port’s Terminal 91 property; (2) procure and execute a project-specific
contract to complete the scope of work required by the Ecology Agreed Order and future
amendments; and (3) execute a Corrective Action Permit Renewal application as required by
Ecology and EPA for the T-91 facility.
EXECUTIVE SUMMARY
Terminal 91 (T-91) is located in an industrial area in the Interbay neighborhood of Seattle. The
two piers located at Terminal 91 were built by the port soon after its establishment in 1911. In
1941 the U.S. Navy took ownership and the port reacquired the facility in the 1970s.
A tank farm located at the terminal was used as a dangerous waste treatment and storage
facility under a Resource Conservation and Recovery Act (RCRA) permit from the 1970s until
1995. The permit was issued to the various operators and to port as the facility owner. After the
tank farm closed, the permit transitioned to a corrective action permit which was implemented
under an Ecology cleanup order. The above-ground portion of the tank farm was demolished by
the port in 2005. On April 10, 2012, Ecology and the port entered into an Agreed Order (No. DE
8938) which obligated the port to implement cleanup of the former tank farm area. The tank
farm cleanup has been completed, but still requires long-term compliance monitoring and a
corrective action permit, which must be renewed every 10 years. The existing corrective action
permit expires in 2020, which requires a new permit renewal application to be signed and
submitted.
COMMISSION AGENDA – Action Item No. _6a___ Page 2 of 5
Meeting Date: January 7, 2020
Template revised September 22, 2016; format updates October 19, 2016.
The 2012 Agreed Order also applied to the port-owned submerged lands (i.e., sediment area)
adjacent to T-91, which stated that Ecology would re-evaluate the necessity and practicability
of remediation in the submerged lands. When maintenance dredging was proposed in a limited
area of the sediments, Ecology requested the port to perform a preliminary sediment
investigation and sediment maintenance work under an Agreed Order amendment. The
preliminary sediment investigation was completed in 2018 and based on the findings, Ecology
has requested the port conduct a Remedial Investigation (RI) of the sediments under a new
Agreed Order.
The new Agreed Order is the primary focus of this Commission request. The RI required under
this Agreed Order will identify the nature and extent of chemical contamination in the
sediments. This information along with the RI performed by the Army Corps of Engineers in
2013 to identify the nature and extent of discarded military munitions explosive hazard and risk
associated with munitions constituents will be used to identify cleanup approaches for the
sediment site in a future feasibility study. Furthermore, the RI could help identify other PLPs
and aid in future cost recovery actions. The Agreed Order will likely be amended in the future to
require additional work such as a feasibility study and/or draft cleanup action plan.
To conduct the RI, the port will procure an environmental consulting firm to perform the work
using the public procurement process. The procurement will be for the Remedial Investigation,
as well as for the potential future work that may be required (i.e., feasibility study and/or draft
cleanup action plan). The port’s Diversity in Contracting Department is recommending a 10%
aspirational goal for women and minority business enterprises (WMBE) attainment. This
procurement will be for
No funding is requested. Funding for this work was included in the 2020 – 2024 Environmental
Remediation Liability (ERL) Program.
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. The Ecology Agreed Order is a binding agreement to perform site environmental
investigation work by the port. The work by the port required of the Agreed Order will include
direct costs for consulting and laboratory fees in excess of $500,000. Therefore, signing the
Ecology order requires Commission authorization.
DETAILS
The Scope of Work detailed in Ecology’s Agreed Order requires that the port perform an RI for
the submerged lands (i.e., sediment area) of 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 sediment
samples. The RI will determine the origin, nature, distribution/fate and transport, and extent of
COMMISSION AGENDA – Action Item No. _6a___ Page 3 of 5
Meeting Date: January 7, 2020
Template revised September 22, 2016; format updates October 19, 2016.
contamination exceeding the Sediment Management Standards (WAC 173-204), and other
regulatory requirements. The RI must provide data and information to define the nature and
extent of contamination sufficiently to perform a feasibility study and select a cleanup action.
The Agreed Order will likely be amended in the future to require additional work such as a
feasibility study and/or draft cleanup action plan.
Scope of Work
The Agreed Order’s Scope of Work is expected to be performed by a professional consulting
firm hired by the port. As detailed in Exhibit B of the Agreed Order, the Scope of Work is
divided into the following major tasks:
(1) Task 1 – Remedial Investigation Work Plan
(2) Task 2 – Remedial Investigation (field sample collection, lab analysis, data evaluation)
(3) Task 3 – Interim Action(s), if required
In anticipation of future order amendments, the consultant scope will also include the
possibility of performing a follow-on feasibility study and draft cleanup action plan. If this
additional scope is not needed, the consultant will not be tasked with performing that
additional work.
Schedule
The draft schedule of the required work associated with the Ecology Agreed Order is as follows:
Activity
Q1 – 2020
Q2 - 2020
Q4 – 2020
Q2/Q3 - 2021
Q2 - 2022
Cost Breakdown
Remedial Investigation
$400,000
Feasibility Study and draft Clean-up Action
Plan (if needed)
$500,000
Port Management
$100,000
Total
$1,000,000
COMMISSION AGENDA – Action Item No. _6a___ Page 4 of 5
Meeting Date: January 7, 2020
Template revised September 22, 2016; format updates October 19, 2016.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do Not Authorize Signature of the Ecology Agreed Order
Cost Implications: Not signing the Agreed 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) None.
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 Agreed Order and Procure and Execute a
Project Specific Consultant Contract
Cost Implications: $1 million, depending on the findings during the work.
Pros:
(1) Complies with the order and furthers the port’s collaborative working relationship
with Ecology.
(2) Takes the next step leading to the T-91’s cleanup and long-term protection of human
health and the environment beyond T-91.
(3) Demonstrates the port’s value of being a responsible steward of community resources
and the environment.
(4) Could potentially identify other responsible parties to share in the cleanup costs.
Cons:
(1) Costs of approximately $1 million by the port to complete the Agreed Order’s
Statement of Work and future amendments.
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 annual Environmental Remedial Liability (ERL) authorization.
Certain costs may also be eligible for insurance reimbursement.
COMMISSION AGENDA – Action Item No. _6a___ Page 5 of 5
Meeting Date: January 7, 2020
Template revised September 22, 2016; format updates October 19, 2016.
Cost Estimate/Authorization Summary
This Request
Total Project
COST ESTIMATE
RI
$400,000
Not Applicable
FS and draft Cleanup Plan
(if needed)
$500,000
Port Management
$100,000
AUTHORIZATION
Not Applicable
Not Applicable
Previous authorizations (by ERL)
Current request for authorization
Total authorizations, including this request
Remaining amount to be authorized
$0
$0
ATTACHMENTS TO THIS REQUEST
(1) State of Washington Department of Ecology Agreed Order
(2) Terminal 91 Tank Farm RCRA Permit Renewal Application
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
November 19, 2019 – The Commission authorized spending environmental remediation
liabilities funds for 2020 in the amount of $28,730,000 and a five-year plan of
$123,312,000 for Environmental Remediation Liability Program for 2020-2024 of which
an amount estimated not to exceed $30,000,000 will be obligated during 2020 to be
spent in future years.
November 13, 2018 – The Commission authorized spending environmental remediation
liabilities funds for 2019 in the amount of $17,025,000 and a five-year plan of
$88,800,000 for Environmental Remediation Liability 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.
December 8, 2015 - Commission authorized the Chief Executive Officer to execute Agreed
the Amendment to Order No. DE 8938 with the Washington State Department of
Ecology to perform a historical review and sampling of the T-91 sediments and to
perform the sediment regrading project.
September 10, 2013 – Commission authorized maintenance dredging at Terminal 5 and
Terminal 91 for the combined total of $4,800,000.
March 27, 2012 – Commission authorized the Chief Executive Officer to execute Agreed
Order No. DE 8938 with the Washington State Department of Ecology on the
implementation of a Cleanup Action Plan and to address contamination in the Upland
area of Terminal 91.