Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6f
ACTION ITEM
Date of Meeting
June 9, 2020
DATE: May 1, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Sandy Kilroy, Director, Maritime Environment & Sustainability
Kathy Bahnick, Manager, Remediation Programs
Roy Kuroiwa, Sr. Environmental Program Manager
SUBJECT: Terminal 115 Plant 1 Ecology Agreed Order
Amount of this request:
$0
Source of Funds:
ERL Non Ops
Total estimated project cost:
$3,500,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to:
1. Sign and execute an Order with the Washington State Department of Ecology (Ecology)
to complete a Remedial Investigation and Feasibility Study (RI/FS) at the Port’s Terminal
115 property.
2. Sign a Potential Liable Party (PLP) Cost Sharing Agreement between the Port and The
Boeing Company (Boeing) to share the costs and perform the scope of work required by
Ecology’s Order.
3. Procure and execute a project-specific, professional contract with an environmental
consulting firm in the amount of $3,000,000 to complete the scope of work (RI/FS)
required by the Ecology Agreed Order.
EXECUTIVE SUMMARY
The Port’s Terminal 115 site is located on the west bank of the Lower Duwamish Waterway (LDW)
Superfund site and is considered a source control site within EPA’s LDW Superfund site. The
approximately 100-acre property has a long history of industrial and commercial activities,
including aircraft manufacturing by Boeing (Plant 1 location), two historic and one current gas
station, aluminum re-melting, and a ‘refinery building’. As a result, the property is known to have
contamination (e.g., petroleum and heavy metals) in site soil and groundwater and Ecology is
requiring two parties – The Port of Seattle and Boeing – to jointly investigate and evaluate the
nature and extent of contamination at the site.
COMMISSION AGENDA – Action Item No. _6f___ Page 2 of 5
Meeting Date: June 9, 2020
Template revised June 27, 2019 (Diversity in Contracting).
As former and current property owners of Terminal 115, Boeing and the Port have been identified
as Potentially Liable Parties (PLPs) by Ecology for the T-115 site. Ecology has named the project
site “Terminal 115 Plant 1.” From approximately 1969 through 1972, the Port developed the
property into a container terminal, growing the property from approximately 30 acres to 100
acres by diking and filling in with imported material. By 1974, the terminal was developed into a
marine cargo and container terminal. Current uses and operations at T-115 include
transshipment of bulk cargo, seafood receiving, processing and cold storage, and container
storage and repair. Boeing operations were terminated around 1969 when the Port purchased
the property and demolished all the former Plant 1 buildings.
The two PLPs will share responsibility to perform the requirements of the Ecology Order and each
will initially pay an equal amount or 50% toward the costs of the work. Final allocation of costs
will be determined after more is known about the site. The Port will procure an 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 Port, and the
appropriate portion reimbursed by Boeing.
JUSTIFICATION
As the owner of the terminal, the Port (and Boeing as the former owner) has been identified by
Ecology as a PLP of the site. The Ecology Order is a binding agreement to perform work by the
Port, therefore the signing of the Order requires Commission authorization.
The Ecology Order’s scope-of-work requires a Remedial Investigation (RI) and Feasibility Study
(FS), which leads to the selection of a cleanup remedy, if necessary. The work will also help
Ecology and the PLP’s determine the allocated share of their liability and share of the costs for
this work and subsequent cleanup, if appropriate.
The project formally initiates the process of determining site cleanup and source control efforts
necessary to meet EPA and Ecology’s source control needs and requirements, known as
Sufficiency, for the larger LDW Superfund cleanup project.
Diversity in Contracting. For the upcoming procurement, the project team has contacted the
Diversity in Contracting Department and has established a women- and minority-owned business
enterprise (WMBE) aspirational goals and inclusion plan of 15%.
DETAILS
The Statement of Work (SOW) detailed in Ecology’s Order requires that the PLPs perform a
Remedial Investigation, Feasibility Study, and, if appropriate, develop a draft Cleanup Action Plan
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
COMMISSION AGENDA – Action Item No. _6f___ Page 3 of 5
Meeting Date: June 9, 2020
Template revised June 27, 2019 (Diversity in Contracting).
collection and chemical analysis of soil, groundwater, and stormwater samples to develop an
environmental conceptual site model (CSM). The CSM will be used to prepare the FS – an
evaluation of remedial alternatives suitable to eliminate or remove risks caused by the
contamination. Relying on the FS, a remedy may be selected to address the contamination on
the site. The work performed under this Order should enable the PLPs to assign (proportionate)
responsibility for the cleanup. The actual cleanup is usually performed under a follow up order
(often a consent decree with Ecology).
Scope of Work
The Order’s Scope of Work is expected to be performed by a professional consulting firm hired
by the Port (and Boeing pays their share of costs). As detailed in Exhibit B of the Order, 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 3 – Interim Action(s), if required
(4) Task 4 – Feasibility Study
(5) Task 5 – SEPA Compliance
(6) Task 6 – Public Participation
(7) Task 7 – draft Cleanup Action Plan
Schedule
The schedule of the required work associated with a PLP Agreement and as presented in the
Ecology Order is as follows:
Activity
Q2 – 2020
Q1 – 2021
2021 – 2022
2023
2024
Cost Breakdown
Estimated Total
Project
Remedial Investigation
$1,750,000
Interim Actions
$0
Feasibility Study
$200,000
Cleanup Action Plan / SEPA
$250,000
Project Management and Controls
$300,000
COMMISSION AGENDA – Action Item No. _6f___ Page 4 of 5
Meeting Date: June 9, 2020
Template revised June 27, 2019 (Diversity in Contracting).
Public Participation
$100,000
Ecology Agency
$150,000
Contingency (30%)*
$750,000
Total Project Costs:
$3,500,000
* The Port has extensive experience with EPA and Ecology Investigations and Cleanup, including the existing T115N MTCA AO site. A contingency
for these projects is warranted and may eventually be higher than shown.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do Not Authorize Signature of the Settlement Agreement
Cost Implications: Not signing the Ecology Order may result in the issuance of an enforcement
order by Ecology, or Ecology may elect to perform this work itself. This would result in the State
recovering the cost of the work from the Port and Boeing, increasing the estimated costs by 1.5
to 3 times, roughly $5 to $10.5 million (from $3.5 million).
Pros:
(1) May delay the Port’s spending by a year or more while Ecology prepares the
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 the costs.
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 enforcement order (gain access to
the site, etc.)
(2) The ultimate costs of the work will be much higher if Ecology elects to perform 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 Agreed Order and begin the required Statement of
Work
Cost Implications: Likely $3,500,000, which includes a 30% contingency to account for additional
work due to changing site conditions or requirements by Ecology.
Pros:
(1) Complies with the Order and furthers the Port’s collaborative working relationship with
Ecology.
(2) Takes the next step leading to Terminal 115’s cleanup and long-term protection of
human health and the environment.
(3) Will likely lead to the identification of other responsible parties for past releases.
COMMISSION AGENDA – Action Item No. _6f___ Page 5 of 5
Meeting Date: June 9, 2020
Template revised June 27, 2019 (Diversity in Contracting).
(4) Demonstrates the Port’s value of being responsible stewards of community resources
and the environment.
Cons:
(1) Costs of approximately $3,500,000 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 is from the Tax Levy and costs are included in the annual Environmental Remedial Liability
(ERL) authorization. Further, all of the project costs except Port staff costs will be shared equally
by Boeing. Certain costs may also be eligible for insurance reimbursement and Ecology grant.
Cost recovery from other, former owners or operators at the terminal may be pursued in the
future.
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$0
$3,500,000
$3,500,000
AUTHORIZATION
Previous authorizations
0
0
0
Current request for authorization
0
0
0
Total authorizations, including this request
0
0
0
Remaining amount to be authorized
$0
$0
$0
ATTACHMENTS TO THIS REQUEST
(1) Site map of Terminal 115
(2) T115 Plant 1 Ecology Order and Scope of Work
(3) Common Interest and Cost-Sharing Agreement with the Boeing Company
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
November 19, 2019 – The Commission authorized 2020 – 2024 Environmental Remediation
Liability (ERL) Programs fund for 2020 and approved a five-year spending plan for the
2020 – 2024 ERL program.
November 2, 2010 – The Commission authorized the signing of an Ecology Agreed Order for
Environmental Investigations at Terminal 115 North.