Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8k
ACTION ITEM
Date of Meeting
December 12, 2023
DATE: December 5, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Arthur Kim, Capital Project Manager III, Waterfront Project Management
Stephanie Jones Stebbins, Managing Director, Maritime
SUBJECT: T5 Dredging Additional Funding
Amount of this request:
$2,400,000
Total estimated project cost:
$3,500,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to increase the total costs not to
exceed from $1,100,000 to $3,500,000 for executing a change order for upland disposal of a
portion of the T5 Dredging Project under Port of Seattle management, Master Identification No.
U00680.
EXECUTIVE SUMMARY
Project budget authorization increase is requested to issue a change order to Orion Construction
to dispose of approximately 5,700 cubic yards (CY) of sediment at an authorized uplands disposal
facility as it is not suitable for in-water disposal.
JUSTIFICATION
This project went from a single phase of construction to two due to unforeseen circumstances.
The original project scope (Phase I) was to dispose of all dredged material identified during
sediment characterization as unsuitable for open water disposal. During dredging of material that
had been characterized as suitable for open water disposal, a sheen was discovered that resulted
in approximately 3,200 CY of material disposed of at an approved upland disposal facility.
Upon completion of Phase I dredging, it was discovered that areas of the berth were under-
dredged. All the approximate 2,500 CY of under-dredged material has been deemed unsuitable
for in-water disposal by the regulatory agencies. Due to this, the dredged sediment will need to
be disposed of at an approved upland facility. The under-dredge work will be completed by
December 31, 2023, and are considered a part of Phase II of the T5 Dredging Project.
COMMISSION AGENDA – Action Item No. 8k Page 2 of 4
Meeting Date: December 12, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Additional funding is being requested to complete the T5 Berth Dredging. This request is to
finalize Phases I & II.
Diversity in Contracting
The contractor will self-execute the work. On a 3% Women & Minority Business Enterprise
(WMBE) goal, WMBE firms are currently approximately 10% of the current paid work. The
Diversity in Contracting Department does not anticipate this change order to impact Orion’s
WMBE commitments.
DETAILS
This project is associated to the T5 Berth Modernization Project (U00100). Because legacy
contaminated soil is considered a Homeport responsibility per section 3.2(a) of the NWSA
Charter, U00680 was created for upland disposal separate from the Northwest Seaport Alliance
T5 Modernization Project. This project will be booked as operating expense to Port of Seattle
Joint Venture as it is separate from the NWSA T5 Modernization Capital Project.
Scope of Work
Change orders will be processed to Orion Marine Contractors, Inc. on the major construction
contract to perform the following:
• Take approximately 2,500 CY (Phases II) of contaminated sediment that is not suitable
for in-water disposal and dispose of it upland at an approved facility.
• Cover the overages of approximately 3,200 CY from unforeseen conditions as part of
Phase I work.
Schedule
Commission construction authorization
November 2021
Construction start
December 2022
In-use date
January 2024
This Request
Total Project
Design
$0
$50,000
Construction
$2,400,000
$3,450,000
Total
$2,400,000
$3,500,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do nothing.
Cost Implications: No additional funds committed.
Pros:
(1) Reduced cost to the Port.
COMMISSION AGENDA – Action Item No. 8k Page 3 of 4
Meeting Date: December 12, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) T5 Berth Deepening will not be completed and the lease obligations to the Tenant
cannot be fulfilled.
(2) Potential legal impacts for not completing the scope of the Terminal 5 Berth Deepening.
(3) Potential repercussions from outside public agencies.
This is not the recommended alternative.
Alternative 2 – Continue with Phase II contaminated sediments portion of the Terminal 5 Berth
Deepening and cover upland disposal overages from Phase I.
Cost Implications: Additional funding of $2,400,000 to the project.
Pros:
(1) Complete the project according to the full committed scope of the T5 Berth Deepening.
(2) Meets required regulatory standards.
(3) Protects the environment from potential contamination.
Cons:
(1) Additional funding of $2,400,000 is required.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
$0
$700,000
$700,000
0
$400,000
$400,000
0
$2,400,000
$2,400,000
0
$3,500,000
$3,500,000
0
$1,100,000
$1,100,000
0
$2,400,000
$2,400,000
0
$3,500,000
$3,500,000
$0
$0
$0
Annual Budget Status and Source of Funds
The Port of Seattle’s Environmental Remediation Liability (ERL) has allocated $3,500,000 for this
project. Funding will come from the Environmental Legacy Fund.
Financial Analysis and Summary
Project cost for analysis
$2,400,000
COMMISSION AGENDA – Action Item No. 8k Page 4 of 4
Meeting Date: December 12, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Business Unit (BU)
Joint Venture
Effect on business performance
(NOI after depreciation)
N/A
IRR/NPV (if relevant)
N/A
CPE Impact
N/A
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
January 4, 2023 – The Managing Members (POS only vote) authorized an additional $400,000
for change order execution.
November 2, 2021 – The Managing Members (POS only vote) authorized $700,000 for change
order execution.