Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8g
ACTION ITEM
Date of Meeting
April 14, 2026
DATE: March 17, 2026
TO: Stephen P. Metruck, Executive Director
FROM: Amy Kiessling, Capital Project Manager III, Waterfront Project Management
Stephanie Jones Stebbins, Managing Director, Maritime
SUBJECT: Terminal 5 Upland Projects Authorization for Environmental Remediation Liability
Costs Related to CIP#s C800988 and C801340
Amount of this request:
$6,318,000
Total estimated cost:
$6,318,000
ACTION REQUESTED
Request Port of Seattle Commission authorization for the Executive Director or their delegate to
authorize spending $6,318,000 of Environmental Remediation Liability (ERL) costs for the
disposal of legacy contaminated soil from the Terminal 5 Upland projects authorized under the
Terminal 5 Berth Modernization Management Reserve (CIP 800988) and the Terminal 5 Modern
3
rd
Lease Amendment Capital Improvement Plans (CIP 801340).
EXECUTIVE SUMMARY
This authorization is requested to dispose of an estimated 86,000 tons of contaminated soil and
slag from the following four authorized Northwest Seaport Alliance (NWSA) projects all located
in the upland area of Terminal 5 (T5):
• T5 North Reefer Infrastructure Project (U00649): Project will add electrical capacity to
power an additional 960 refrigerated containers, bringing the total grid-tied storage
capability up to 1,554.
• T5 New Gate Complex Project (U00673): Project will construct a new truck gate complex
to allow for greater on-terminal queueing capacity.
• T5 Phase II Uplands Paving Project (U00708): Project will rehabilitate the surface
infrastructure in the southern half of the terminal.
• T5 Container Yard Expansion Project (U00712): Project will redevelop six acres to increase
cargo container handling capacity.
The soil and slag are not suitable for disposal as clean construction and demolition debris and
instead have been or will be disposed of as Subtitle D, Subtitle D Direct Haul, or Subtitle C Direct
Haul material.
COMMISSION AGENDA – Action Item No. 8g Page 2 of 5
Meeting Date: April 14, 2026
Template revised June 27, 2019 (Diversity in Contracting).
JUSTIFICATION
Per GASB No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations, an
obligatory event was triggered when a contractor’s notice to proceed was issued requiring export
and disposal of soil to a Subtitle D facility. Per NWSA Charter at Section 3.2(b), where soil or other
materials is re-disturbed or removed as part of a Port Development Authority (PDA) (i.e., NSWA)
project, the relevant Homeport shall be responsible for the incremental cost of disposal of legacy
contamination that pre-dated NWSA operations (i.e., the additional cost to dispose of
contaminated materials above the cost to dispose of clean materials).
Diversity in Contracting
The Diversity in Contracting Department determined a DBE participation goal of 35%. DBE
attainment to date is 24.61% and is expected to meet or exceed the goal.
DETAILS
Soil testing for each project determined that, due to the levels of contamination present, all soil
removed from the Terminal 5 uplands projects must be disposed of at approved landfill facilities.
Remnant slag was discovered in two areas. The soil and slag for all these projects contains legacy
contamination that pre-dates NWSA formation and is therefore a Homeport responsibility.
Schedule
NWSA MM construction authorization
2023 Q3
Construction start ranges
2025 Q1 to 2026 Q2
In-use date ranges
2026 Q1 to 2026 Q4
Cost Breakdown
Gate
(U00673)
Paving
(U00708)
Yard Exp
(U00712)
Total
NWSA COSTS
Design/Soft
Costs
$3,900,884
$1,504,879
$2,406,206
$13,454,244
Construction*
$10,651,058
$15,809,968
$15,868,913
$72,106,794
Total Project
$14,551,942
$17,314,847
$18,275,119
$85,561,038
Incremental Soil Disposal Cost Details
NWSA Soil
Disposal Cost
$213,210
$1,100,240
$709,500
$2,568,680
COMMISSION AGENDA – Action Item No. 8g Page 3 of 5
Meeting Date: April 14, 2026
Template revised June 27, 2019 (Diversity in Contracting).
Cost Breakdown, Cont.
Reefer
(U00649)
Gate
(U00673)
Paving
(U00708)
Yard Exp
(U00712)
Total
PORT ERL Cost
$1,753,145
$619,942
$2,483,032
$1,461,881
$6,318,000
Total Contaminated
Soil Disposal Costs
$2,298,875
$833,152
$3,583,272
$2,171,381
$8,886,680
*Port Environmental Remediation Liability (ERL) Costs are not included in the NWSA
Construction Costs
The Port records an environmental remediation liability (ERL) when its obligation is sufficiently certain and the costs
can be reasonably estimated. When the liability is booked, the Port also recognizes an expense in the current period.
These liabilities and forecasts are developed in accordance with GASB 49.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
The four projects are lease obligations between the NWSA and SSA Terminals. The reefer and
gate projects are under construction and will reach substantial completion in Q1 and Q2 2026.
The paving project and container expansion projects are in progress; both will be in construction
in Q2 2026 and reach substantial completion between Q3 and Q4 of 2026. There is no alternative
but to recognize the obligatory event under GASB 49 (AC-9) as an environmental remediation
liability. Any change to the agreement in the NWSA Charter Agreement that each homeport is
responsible for its own legacy contamination would require NWSA Managing Members’
authorization and is not recommended.
Use Port funds to dispose of the soil from the NWSA T5 uplands projects.
Cost Implications: Additional funding of $6,318,000 from the Port of Seattle.
Pros:
(1) Port compliance with GASB No. 49, Accounting and Financial Reporting for Pollution
Remediation Obligations (AC-9).
(2) Port adherence to NWSA Charter Section 3.2(b) regarding homeport legacy soil disposal
responsibilities.
Cons:
(1) Additional funding of $6,318,000 from the Port of Seattle.
(2) $2.4M of the request is an unplanned 2025 expense to the Fund.
This is recommended.
COMMISSION AGENDA – Action Item No. 8g Page 4 of 5
Meeting Date: April 14, 2026
Template revised June 27, 2019 (Diversity in Contracting).
FINANCIAL IMPLICATIONS
Authorization Summary
Capital
Expense
Total
AUTHORIZATION
Previous authorizations
$0
$0
$0
Current request for authorization
$0
$6,318,000
$6,318,000
Total authorizations, including this request
$0
$6,318,000
$6,318,000
Remaining amount to be authorized
$0
$6,318,000
$6,318,000
Annual Budget Status and Source of Funds
$3.9M of the $6.3M total has been allocated to the Port’s ERL for 2026. The remaining $2.4M
was an unplanned expense that has been accrued to 2025. All funding will come from the Port’s
Environmental Legacy Fund or Tax Levy.
ATTACHMENTS TO THIS REQUEST
(1) Presentation Slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
June 4, 2024 – The NWSA Managing Members approved use of “design-build” as an
alternative to “design-bid-build: for the Terminal 5 Container Expansion Project, U00712.
August 1, 2023 – The NWSA Managing Members authorized for the Chief Executive Officer or
their delegate to enter into the Third Amendment to the Terminal 5 lease with SSA
Terminals (Seattle Terminals), LLC eliminating the Phase 1 Plus premise and to certain
improvements and the financial responsibility for such improvements and to commence
Phase 2 operation on January 1, 2024, in substantially the same form as presented.
August 2, 2022 – The NWSA Managing Members authorized for the Chief Executive Officer or
their delegate to approve the Third Amendment to the Terminal 5 lease with SSA
Terminals (Seattle Terminals), LLC to commit early to the Phase 2 of the Terminal 5 Lease
eliminating Phase 1 Plus premises and to certain improvements and the financial
responsibility for such improvements and to commence Phase 2 operation on January 1,
2024.
May 2, 2022 – Briefing to NWSA Managing Members informing that NWSA’s Lease
Obligations were in progress per the agreements with the Tenant. Work is ongoing to
coordinate with the tenant to complete the North Reefer Infrastructure project as a
Tenant Reimbursable project to better meet operations and schedule needs.
July 7, 2021 – The NWSA Managing Members authorized construction for the T5 North Reefer
Infrastructure Project.
July 7, 2021 – The NWSA Managing Members authorized an increase to the Program
authorization in the amount of $50 million, for a total amount of $390 million, for the
Terminal 5 Berth Modernization Program, MID Nos C800132, C800726 and C800988.
COMMISSION AGENDA – Action Item No. 8g Page 5 of 5
Meeting Date: April 14, 2026
Template revised June 27, 2019 (Diversity in Contracting).
May 20, 1019 – The NWSA Managing Members authorized program authorization to
complete work associated with the T5 Modernization Program, CIP No. C800132 and
C800726, for T5 Modernization Program Authorization and Uplands Improvement Project
& Design Permitting Authorizations.
April 2, 2019 - The NWSA/POS/POT approved funding for program authorization in the
amount of $314,150,000, for a total authorized amount of $340,000,000 to complete
work associated with the Terminal 5 Modernization Program, CIP No. C800132 and
C800726.