Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8f
ACTION ITEM
Date of Meeting
February 24, 2026
DATE : February 24, 2026
TO: Stephen P. Metruck, Executive Director
FROM: Linda Springman, Director of Cruise & Elliott Bay Operations
Dario Marcolin, Cruise Technical & Systems Operations Manager
Julie Yun, Capital Project Manager, Waterfront Project Management
SUBJECT: Terminal 91 West Cruise Dredging – Updated Project Authorization for ERL
Amount of this request:
$250,000
Total estimated project cost:
$3,250,000
($550,000 ERL – N10851 /
$2,700,000 Expense – N10739)
ACTION REQUESTED
Request Commission authorization for the Executive Director to approve the updated project
authorization request to include the Environmental Remediation Liability (ERL) project in the
amount of $250,000 for a total authorization of $550,000 ERL and $750,000 Expense.
EXECUTIVE SUMMARY
This project will contribute toward satisfying Commission Order No. 2024-08 setting an
accelerated timeline for all homeport cruise ships to utilize shore power at all Port facilities by
2027. The scope includes maintenance dredging the West Cruise berth (H/I/J) at Terminal 91 Pier
91 to allow cruise vessels to maneuver in the West berth and have the flexibility to dock on both
port- and starboard sides. The additional maneuverability will also allow for vessels to adjust their
position at the dock to accommodate bollards, gangways, shell doors, shore power connection,
and all necessary points for operation.
Since the initial design authorization approved in September 2025 (Delegation of Responsibility
& Authority “DORA” Request No. 2274-2025), the total project cost has increased beyond
$2,000,000 authorization threshold and has added ERL scope. The updated total project cost
estimated remains in line with the CIP planning forecast. The dredging footprint for this project
was increased to optimize stable design of the main channel dredge area, the addition of a high-
spot at the pier face, and the State Department of Ecology has dictated that this work is an
Interim Action under the Model Toxic Control Act (MTCA) Agreed Order No. DE24768 for the
Terminal 91 Submerged Lands Cleanup Site.
COMMISSION AGENDA – Action Item No. 8f Page 2 of 5
Meeting Date: February 24, 2026
Template revised June 27, 2019 (Diversity in Contracting).
JUSTIFICATION
On June 11, 2024, the Port Commission adopted Order No. 2024-08 (“shore power mandate”),
setting an accelerated timeline for all homeport cruise ships to utilize shore power at all Port
facilities by 2027. This mandate upholds the Port’s commitment to operating in an
environmentally responsible manner by reducing air pollution and GHG emissions, and serves as
the driver for restoring vessel maneuverability through this maintenance dredge project.
The west cruise berth is located within the approximately 85-acre Sediment Cleanup Unit (SCU)
of the Terminal 91 Cleanup Site, which includes both an upland area and the submerged land
area (i.e., the SCU). In addition to the west berth, the SCU also includes the central and eastern
berths; these areas will not be impacted by the proposed maintenance dredging. Under MTCA
Agreed Order No. DE24768, the Port is currently conducting additional field investigations to
inform the Feasibility Study for the submerged lands, which will evaluate cleanup alternatives.
Per direction to the Port from WA State Department of Ecology in September 2025, the proposed
dredging in the west berth is considered an Interim Action under the Agreed Order.
In addition to this direction from Ecology, further work was done by the project team to optimize
the dredge design for stability and longevity of the new channel. As a result, there is an overall
increase to the previously authorized dredging footprint (DORA Request 2274-2025, approved
September 2025). The project still aims to perform a final maintenance dredge elevation to -35’
Mean Low Low Water (MLLW), as originally authorized. However, the main channel now amounts
to approximately 3,000 CY and an addition of approximately 500 CY of dredge area has been
added to the Southeast berth face area which will proceed under the new ERL funded project.
Diversity in Contracting
Design is being developed by consultants on an existing on-call Dredging Support Services IDIQ
contract with a 12% women- and minority-owned business enterprise (WMBE) aspirational goal.
Progress toward this goal will be carefully monitored in collaboration with the Port’s Diversity in
Contracting office and consultant representatives.
Construction will be performed by utilizing an existing MC-Unit Price contract for dredging
construction services with a WMBE goal of 0% due to the low availability of WMBE firms in the
highly specialized dredging and disposal fields.
DETAILS
Scope of Work
This request will authorize ERL funding to allow for full design and construction of the Interim
Action Work scope. The project team will return to receive construction authorization of the base
project scope (outside of the Interim Action Work scope) at a future date.
This project will perform the following tasks:
COMMISSION AGENDA – Action Item No. 8f Page 3 of 5
Meeting Date: February 24, 2026
Template revised June 27, 2019 (Diversity in Contracting).
(1) At the Main West Channel, dredge approximately 3,000 CY of sediment to maintenance
dredge elevation of -35’ MLLW and dispose upland at an approved facility.
(2) At the Southeast berth face, dredge a high spot amounting to approximately 500 CY.
This area is within the T91 discarded military munitions (DMM) response area and will
be screened for DMMs, and disposed upland at an approved facility.
(3) 6-9” of clean sand cover will be placed over the Southeast berth face as required by the
regulatory agencies.
(4) Administrative components required by Ecology include preparing an Interim Action
Work Plan, conducting post dredge sampling and laboratory analysis, and preparing an
Interim Action Completion Report.
Schedule
In addition to the approval of the MTCA Interim Action, this project will be authorized for federal
and state regulatory compliance through a Nationwide Permit for cleanup activities (NWP-38).
This work is subject to the 2026-2027 permitted in-water work window and targets substantial
completion prior to the 2027 Cruise season start, per Commission Order No. 2024-08.
This project aims to meet an aggressive completion timeline per Commission Order No. 2024-08.
As such, the schedule risks below are being closely managed:
(1) Permitting risk – The project team has been proactively engaging with federal/local
agencies, tribes, etc. to ensure timely progress toward full permit approval. Unforeseen
government shutdown or resource constraints will affect the current project schedule.
(2) Presence of Discarded Military Munitions (DMM) – This project will dredge within the T91
DMM response area. The project team will collaborate with government agencies and the
general contractor to develop protocol for safe screening and disposal of any found
DMM’s. DMM discovery during construction will halt work until notification to resume
work is issued.
(3) Contract risk – This project will utilize an existing MC-Unit Price Dredging contract. The
project team is coordinating with other current/upcoming dredge projects to manage
resource sharing.
Activity
DORA design authorization
2025 Q4
Design start
2025 Q4
Commission design authorization update
2026 Q1
Commission construction authorization
2026 Q4
Construction start
2026 Q4
In-use date
2027 Q1
COMMISSION AGENDA – Action Item No. 8f Page 4 of 5
Meeting Date: February 24, 2026
Template revised June 27, 2019 (Diversity in Contracting).
Cost Breakdown
This Request –
N10739 EXP
This Request –
N10851 ERL
Total Project
estimate
Design
$0
$0
$830,000
Construction
$0
$250,000
$2,420,000
Total
$0
$250,000
$3,250,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do nothing.
Cost Implications: No additional funds committed for ERL.
Pros:
(1) Preserve Port ERL funds for higher priority efforts at the Port.
Cons:
(1) T91 Maintenance Dredging project will likely receive permit denial due to lack of
adherence to Department of Ecology’s guidance to address the designated Interim
Action Work.
(2) High likelihood of not meeting substantial completion by 2027 Cruise season start,
thereby failing to conform to the Commission’s adopted Order No. 2024-08 (“shore
power mandate”).
This is not the recommended alternative.
Alternative 2 – Fully fund ERL portion of the T91 Cruise Dredging Project and proceed to complete
design & permitting.
Cost Implications: Additional funding of $250,000 in ERL funds.
Pros:
(1) Complete the project in accordance with MTCA Agreed Order No. DE24768 for the
Terminal 91 Cleanup Site.
(2) Minimize permitting and schedule risk to achieving substantial completion by 2027
Cruise season start.
(3) Maximize likelihood of satisfying Port Commission’s Order No.2024-08 “Shore power
Mandate.”
Cons:
(1) Additional funding of $250,000 is required.
(2) Additional temporary construction impacts along Pier 91 berth face.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 8f Page 5 of 5
Meeting Date: February 24, 2026
Template revised June 27, 2019 (Diversity in Contracting).
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
ERL
Total
COST ESTIMATE
(N10739)
(N10851)
Original estimate
$0
$1,800,000
$0
$1,800,000
Current change
$0
$900,000
$550,000
$1,450,000
Revised estimate
$0
$2,700,000
$550,000
$3,250,000
AUTHORIZATION
Previous authorizations
$0
$750,000
$300,000
$1,050,000
Current request for authorization
$0
$0
$250,000
$250,000
Total authorizations, including this request
$0
$750,000
$550,000
$1,300,000
Remaining amount to be authorized
$0
$1,950,000
$0
$1,950,000
Annual Budget Status and Source of Funds
The approved 2026 Operating Budget includes $750,000 for the expense portion of this project
and will be funded by the General Fund.
The ERL portion of the project was included in the 2026 Plan of Finance and will be funded by the
Environmental Legacy Fund.
Financial Analysis and Summary
Project cost for analysis
$3,250,000
Business Unit (BU)
Cruise Operations
Effect on business performance
(NOI after depreciation)
No incremental operating revenue or additional ongoing
operating expenses directly associated with this project.
IRR/NPV (if relevant)
N/A
CPE Impact
N/A
ADDITIONAL BACKGROUND
None.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
September 18, 2025 – Executive director approved Design Authorization through the
Delegation of Authority and Responsibility (DORA) process in the amount of $750,000 in
Expense funding. The total estimated project cost was $1,800,000 with no ERL scope.
