Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6b
ACTION ITEM
Date of Meeting
February 11, 2020
DATE: January 24, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Ticson Mach, Capital Project Manager V
Brick Spangler, Senior Environmental Program Manager
Kaitlyn Jensen, Assistant Project Manager
SUBJECT: Terminal 5 Pacific Sound Resources (PSR) Superfund Cap Maintenance (CIP #102722)
Amount of this request:
$0
Total estimated project cost:
$1,935,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to advertise and execute a
construction contract for the Terminal 5 Pacific Sound Resources Superfund Cap Maintenance
project with a total project cost of $1,935,000. There is no funding requested; construction will
utilize approved environmental remediation and liability funding.
EXECUTIVE SUMMARY
This project will maintain the environmental asphaltic cap over the PSR Superfund Site in the
northwest part of Terminal 5 to remain in compliance with the 1999 Environmental Protection
Agency (EPA) Record of Decision (ROD). The PSR site, located within the Terminal 5 intermodal
yard and adjacent BNSF storage track area, was cleaned up under an order with the EPA as part
of the Terminal 5 Southwest Harbor redevelopment project. The area of the asphaltic
pavement cap is 1,002,389 square feet. The estimated remaining service life is 10 years. The
asphalt serves to cap the underlying contaminated soils. Ongoing obligations include
performing cap inspections and cap maintenance. In December of 2018, the required
inspection indicated maintenance is needed to be compliant with the ROD. This will be
achieved by sealing cracks, repairing pavement damage, and restoring the surface seal coating
to prevent water intrusion into the underlying soil. Duration for design and permitting, which
began in June 2019, is eight months and duration for construction is three months. Planned
date of substantial completion is November 30, 2020.
JUSTIFICATION
An EPA required inspection in December 2018 of the PSR Superfund Site indicates this work is
necessary to maintain compliance per the Port’s legal agreement with the agency.
Noncompliance could result in regulatory jeopardy and fines and/or penalties.
COMMISSION AGENDA – Action Item No. 6b Page 2 of 4
Meeting Date: February 11, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Diversity in Contracting
There will be a woman and minority business enterprise (WMBE) aspirational goal of six
percent associated with this contract.
DETAILS
Scope of Work
This project will restore and reseal specially-designed asphaltic pavement cap areas within the
Terminal 5 intermodal yard, Jack Block Park and adjacent BNSF storage track area. Restoration
components include establishing and maintaining temporary erosion and sediment control
(TESC) measures, cleaning and repair of pavement cracks, localized wear lift replacement in
areas of pavement damage, and restoration of the surface seal coat to meet the requirements
of the Inspection and Maintenance Plan for the Asphalt Cap and Associated Stormwater System
– Revision 1, Pacific Sound Resources Site Remediation Area 4, Southwest Harbor Cleanup and
Redevelopment Project (The RETEC Group, Inc. 2004).
Schedule
Activity
Commission design authorization
Design start
Commission construction authorization
Construction start
In-use date
Cost Breakdown
This Request
Total Project
Design and Management Oversight
$0
Construction
$0
Total
$0
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – No action, do not perform any maintenance activities on the cap
Cost Implications: $0
Pros:
(1) No cost, ERL funds remain for other projects
(2) No impact to other projects associated with the Terminal 5 Dock Upgrade
Cons:
(1) Noncompliance with EPA Record of Decision resulting regulatory jeopardy and
potentially fines and/or penalties
(2) Risk of not properly containing the underlying contamination.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. 6b Page 3 of 4
Meeting Date: February 11, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Alternative 2 – Complete upper (2-in.) wear lift replacement in both the Intermodal Yard and
the BNSF Yard.
Cost Implications: $11,340,000
Pros:
(1) PSR cap would be fully replaced and would exceed EPA requirements
(2) This option would extend the life of the asphaltic cap
Cons:
(1) Replacing the wear lift on the entire PSR site greatly exceeds what is required to
maintain the asphaltic cap
(2) The cost of this alternative exceeds the benefits of completely replacing the wear lift
given the results of the inspection.
This is not the recommended alternative.
Alternative 3 – Clean and repair pavement cracks, localized wear lift replacement in areas of
pavement damage, and restoration of the surface seal coat
Cost Implications: $1,935,000
Pros:
(1) Appropriate use of budget
(2) The PSR superfund cap will be appropriately maintained and brought into compliance
with EPA requirements
Cons:
(1) The PSR cap may need to be repaired sooner than if a full replacement is performed.
(2) The PSR cap maintenance is estimated to need additional repair in 5 years
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$0
$3,903,000
$3,903,000
Current change
$0
-$2,041,000
-$2,041,000
Revised estimate
$0
$1,862,000
$1,862,000
Annual Budget Status and Source of Funds
This project is included in the environmental remediation and liability program for which
funding is approved annually. This project has utilized funding approved in 2018 for design in
2019 and will utilize funding approved in 2019 for construction in 2020.
This project is funded by the tax levy.
COMMISSION AGENDA – Action Item No. 6b Page 4 of 4
Meeting Date: February 11, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Financial Analysis and Summary
Project cost for analysis
1,935,000
Business Unit (BU)
Joint Venture
Effect on business performance
(NOI after depreciation)
NA
NPV (if relevant)
$8,366,000
CPE Impact
Discount rate of 6.1%
Assumes cap repair in 5 years and replacement in 10 years and 45 years
Future Revenues and Expenses (Total cost of ownership)
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS.
November 19, 2019 – The Commission authorized the (1) spending of environmental
remediation funds for 2020 in the amount of $28,730,000 and (2) a five-year spending
plan for $123,312,000 for the environmental remediation liability (ERL) program for
2020-2024.
November 13, 2018 – the Commission authorized the (1) spending of environmental
remediation funds for 2019 in the amount of $17,025,000 and (2) a five-year spending
plan for $116,026,000 for the environmental remediation liability (ERL) program for
2019-2023.