Item No.: 8g_supp
Date of Meeting: April 14, 2026

Terminal 5 upland projects authorization for
ERL Funding

Action Requested
• Request Port of Seattle Commission authorization for the
Executive Director 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 3rd Lease Amendment Capital Improvement
Plans (CIP 801340).

2

Project Location

3

Background
An estimated 86,000 tons of contaminated soil and slag needs to be
removed from the following four previously authorized NWSA projects
located in the uplands of Terminal:
• T5 North Reefer Infrastructure Project (U00649)
o In construction, reaches substantial completion Q2 2026

• T5 New Gate Complex Project (U00673)

o In construction, reached substantial complete on April 1, 2026.

• T5 Phase II Uplands Paving Project (U00708)

o Construction starts Q2 2026, substantial completion expected Q4 2026

• T5 Container Yard Expansion Project (U00712)

o Construction starts Q2 2026, substantial completion expected Q3 2026

4

Cost Breakdown
Reefer
U00649

Gate
U00673

Paving
U00708

Yard Exp
(U00712)

Total

Design/Softcosts

$5,642,275

$3,900,884

$1,504,879

$2,406,206

$13,454,244

Construction *

$29,776,855

$10,651,058

$15,809,968

$15,868,913

$72,106,794

Project Total

$35,419,130

$14,551,942

$17,314,847

$18,275,119

$85,561,038

Incremental Soil Disposal Costs Details
$545,730
NWSA Soil Disposal Cost

$213,210

$1,100,240

$709,500

$2,568,680

Port ERL Cost

$1,753,145

$619,942

$2,483,032

$1,461,881

$6,318,000

Total Soil Disposal Costs

$2,298,875

$833,152

$3,583,272

$2,171,381

$8,886,680

NWSA COSTS

*Port ERL Costs are not included in the NWSA Construction Costs

5

Recommendation
• Use Port ERL funds to dispose of the soil from NWSA T5
uplands projects.
- Recognizes the obligatory event under GASB 49 (AC-9) as an
environmental remediation liability.
- Adheres to NWSA Charter that the relevant homeport shall be
responsible for the incremental cost of disposal for legacy
contamination that pre-dates NWSA operations.

6

ERL Authorization Summary
Authorization
Capital

Expense

Total

Previous authorizations

$0

$0

$0

Current request for authorization

$0

$6,318,000

$6,318,000

Total authorizations, including this
request
Remaining amount to be authorized

$0

$6,318,000

$6,318,000

$0

$6,318,000

$6,318,000

7

Discussion / Questions?

8