COMMISSION AGENDA MEMORANDUM Item No. ACTION ITEM Date of Meeting 8g October 27, 2026 DATE : October 20, 2026 TO: Stephen P. Metruck, Executive Director FROM: Linda Springmann, 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 (EXP N10739) - Construction Authorization Amount of this request: Total estimated project cost: $2,050,000 $3,350,000 ACTION REQUESTED Request Commission approval of the project budget in the amount of $2,050,000 for the construction of the Terminal 91 (T91) West Cruise Maintenance Dredge project for a total authorization of $3,350,000, including $550,000 in Environmental Remediation Liability (ERL) funding. EXECUTIVE SUMMARY This project along with the T91 Cruise Shore Power Extension project will contribute toward readiness to satisfy Commission Order No. 2024-08 for full shore power connectivity at the T91 West Cruise berth by 2028 Cruise season start. The maintenance dredge will be performed to a depth of -35' MLLW at the West Cruise berth (berths H/I/J) of Pier 91 to allow cruise vessels the maneuverability and flexibility to connect to shore power on both port- and starboard sides. The proposed dredging is considered an Interim Action by the Washington State Department of Ecology under the Model Toxic Control Act (MTCA) Agreed Order No. DE24768 for the Terminal 91 Submerged Lands Cleanup Site. 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. In addition to allowing cruise vessels to maneuver and have the flexibility to connect to shore-power Template revised January 10, 2019. COMMISSION AGENDA - Action Item No. 8g Meeting Date: October 27, 2026 Page 2 of 5 on both port- and starboard sides, the maintenance dredge to -35'MLLW 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. 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. 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. Diversity in Contracting Construction will be performed by utilizing an existing Major Construction Unit Price contract for dredging construction services. No WMBE aspirational goal will be established due to the low availability of WMBE firms in the highly specialized dredging and disposal fields. DETAILS Scope of Work The following tasks will be performed on this project: (1) Dredge approximately 3,000 CY of sediment at the main & west channel to a maintenance dredge elevation of -35' MLLW and dispose upland at an approved facility. (2) Fulfill all requirements of the Final Interim Action Work Plan approved by Ecology, including post dredge sampling and laboratory analysis, and preparing an Interim Action Completion Report. Since the previous Commission Authorization, the project scope no longer includes dredging of the high spots on the pier face and will proceed with the main dredge footprint only. This is the result of the following two considerations: (1) The project team worked closely with the T91 Cruise Shore Power Extension project team due to the overlapping project footprint at the T91 west cruise berth. The teams concluded that the berth face dredging scope would present critical schedule risk to permanent shore power delivery at T91 West Cruise berth. (2) Based on updated bathymetry survey data, it was determined that the high spots along the berth face do not impact standard operation. High spots and topography changes at the west cruise berth will be monitored for change through regular survey. Given the minimal dredge quantity previously planned at the pier face, removal of this scope did not result in substantive impacts to the project schedule or cost. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8g Meeting Date: October 27, 2026 Page 3 of 5 Community Outreach This maintenance dredge project was presented at the September 2026 meeting of the Neighbors Advisory Committee (NAC). The project team will continue to work with Port External Relations to keep the community informed of the project's progress and minimize construction impacts to the extent possible. Schedule In addition to the approval of the MTCA Interim Action, this project is anticipated to receive all authorization for federal and state regulatory compliance through a Nationwide Permit for cleanup activities (NWP-38) and IAWP in October 2026. This work is subject to the 2026-2027 permitted in-water work window and will start after tribal fishery close. Substantial completion of the maintenance dredge will be delivered in 2027, ahead of permanent shore power extension delivery on the West Cruise berth anticipated by the start of the 2028 cruise season. The dredge work will be coordinated with ongoing shore power construction in the 2026-2027 work window. Activity DORA design authorization Design start Commission design authorization update Commission construction authorization Construction start In-use date Cost Breakdown Design Construction Total This Request - N10739 EXP $0 $2,050,000 $2,050,000 2025 Q4 2025 Q4 2026 Q1 2026 Q4 2026 Q4 2027 Q1 This Request - N10851 ERL $0 $0 $0 Total Project estimate $1,050,000 $2,300,000 $3,350,000 ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 - Do nothing. Cost Implications: No additional funds committed to construct the dredging project. Pros: (1) Cons: (1) Preserve Port Expense funds for higher priority efforts at the Port. T91 West Cruise berth will not be operationally ready to comply with Commission Order No. 2024-08 ("shore power mandate"). Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8g Meeting Date: October 27, 2026 (2) Page 4 of 5 T91 Maintenance Dredging project will not participate in sharing mobilization and DQM costs with the Northwest Seaport Alliance's Terminal 30 dredging project. This is not the recommended alternative. Alternative 2 - Fully fund construction of the T91 Cruise Dredging Project and proceed to project completion. Cost Implications: Additional funding of $2,050,000 in Expense funds. Pros: (1) (2) Cons: (1) (2) Complete the dredging project thereby contributing to T91 being shore power-ready per the Port Commission's Order No.2024-08 "Shore power Mandate." Complete the project in accordance with MTCA Agreed Order No. DE24768 for the Terminal 91 Cleanup Site. Additional funding of $2,050,000 is required. Temporary construction impacts at Pier 91. This is the recommended alternative. FINANCIAL IMPLICATIONS Since the updated design authorization approved February 2026, the project cost estimate has increased to reflect the final dredge design for stability and longevity of the new channel based on updated survey data, corresponding upland disposal quantities, as well as the additional Dredging Quality Management (DQM) requirement imposed by the U.S. Army Corps of Engineers (USACE) as a nationwide industry best practice. Since the original design authorization approved in September 2025 (Delegation of Responsibility & Authority "DORA" Request No. 2274-2025), the total project cost increased beyond $2,000,000 authorization threshold and has added ERL scope. Cost Estimate/Authorization Summary Capital Expense ERL Total COST ESTIMATE Original estimate Current change Revised estimate $0 $0 $0 (N10739) $1,800,000 $1,000,000 $2,800,000 (N10851) $0 $550,000 $550,000 $1,800,000 $1,550,000 $3,350,000 AUTHORIZATION Previous authorizations Current request for authorization Total authorizations, including this request Remaining amount to be authorized $0 $0 $0 $0 $750,000 $2,050,000 $2,800,000 $0 $550,000 $0 $550,000 $0 $1,300,000 $2,050,000 $3,350,000 $0 Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8g Meeting Date: October 27, 2026 Page 5 of 5 Annual Budget Status and Source of Funds This expense project (N10739) is included within the 2027 Maritime Operating Budget and will be funded with General Fund. The ERL portion of the project will be funded by the Environmental Legacy Fund. Financial Analysis and Summary No incremental operating revenue or cost-savings is Project cost for analysis Business Unit (BU) Effect on business performance (NOI after depreciation) IRR/NPV (if relevant) CPE Impact $3,350,000 Cruise Operations No incremental operating revenue or cost-savings is directly associated with this project. N/A N/A ADDITIONAL BACKGROUND N/A ATTACHMENTS TO THIS REQUEST (1) Presentation slides PREVIOUS COMMISSION ACTIONS OR BRIEFINGS February 24, 2026 - Commission approved updated Design Authorization 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. Template revised June 27, 2019 (Diversity in Contracting).