PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6d 
ACTION ITEM 
Date of Meeting    September 13, 2016 
DATE:    September 6, 2016 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Wayne Grotheer, Director, Aviation Project Management Group 
Don Robbins, Senior Environmental Program Manager 
SUBJECT:  Lora Lake Apt. Site Remediation and Lora Lake Fill/Remediation (Expense) 
Amount of This Request:        $4,800,000   Source of Funds:   Airport Development
Fund 
Est. Total Project Cost:         $24,300,000 
Est. State and Local Taxes:       $1,685,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to advertise and execute a major
works construction contract for the environmental remediation at the Lora Lake Apartment Site and
Lora Lake Property with a total project cost of $24,300,000, and increase the Environmental Reserve
Liability by $4,800,000.
SYNOPSIS 
As a result of earlier industrial operations prior to Port of Seattle ownership, the Lora Lake Apartment
Site, located on the west side of Des Moines Memorial Way in the City of Burien, was contaminated
with dioxins in the soil and groundwater. During the remedial investigation of the apartment site,
samples of sediment in the adjoining Lora Lake Property were also required by Washington State
Department of Ecology (Ecology) to be tested. Those sediments also contained dioxin contamination
that is presumed to have migrated from the apartment site. In order fo r future site redevelopment, and
for the Port to comply with state law and the Model Toxics Control Act (MTCA) Consent Decree, the
dioxin contamination in the soil sediment and groundwater at the Lora Lake Apartments Site and Lora
Lake Property must be remediated.
The recent cost estimate based on 90-percent design has increased the total project cost from a
conceptual-level, pre-design budget of $19.5 million to $24.3 million. This increase was not included in
the 2016 Environmental Remediation Liability (ERL) authorization.  The primary drivers of this
increase are: 
a) a much more complex design of the lake parcel sediment capping, fill,  and wetland
restoration, based on results of groundwater modeling that will require two construction seasons to
implement, 
b) the increase in the amount of contaminated soil to be removed from the apartment site, 
c) The need to upgrade the barrier to wildlife at the Dredge Material Containment Area (DMCA) 
from simple gravel to permeable asphalt pavement to comply with the King County Storm water 
Manual. 
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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 2 of 8 

This project has been underway since 1999. Clean-up of the sites requires approximately 29,000 cubic
yards of soil to be removed and 38,000 cubic yards of clean soil to be imported. A federal grant of $5
million has been received with more potentially available by 2019. 
BACKGROUND 
The Lora Lake Apartment complex was the site of a barrel cleaning facility in the 1940s and 1950s, and
an auto wrecking yard in the 1950s through the 1980s. Both of these types of industrial uses are known
to have had high potential for releasing contaminants to the environment.  The Novak Barrel Washing
Company ceased to exist sometime in the late 1940s or early 1950s. Burien Auto Wrecking went out of
business when the property was purchased by the Mueller Development Company in the mid-1980s for
the construction of the apartment complex. 
During the construction of the apartment complex in 1986-87, the developer conducted environmental
investigations and remediation that were approved by Ecology under standards in place at that time. 
The Port acquired the apartment property as part of the Third Runway project to meet Federal Aviation
Administration (FAA) flight safety zone regulations. By 1999 all residents had vacated the property in
anticipation of the construction of the Third Runway and redevelopment for airport and airportcompatible
light industrial/commercial use. Due to delays in Third Runway construction, and prior to
demolition, the Port sold the property to the King County Housing Authority for a limited period, for
residential use.  King County sold the property back to the Port in July 2007, at which time the Port
demolished a sufficient number of structures to comply with FAA regulations for Airport runway
operation. At that time, the Port conducted environmental sampling to define site conditions in support
of future property redevelopment. Sample data indicated significant contamination remained at the site. 
Further investigations confirmed those findings. 
In July 2009, the Port and Ecology entered into an agreed order that required the implementation of a
remedial investigation/feasibility study, and the development of a draft cleanup action plan. During the
remedial investigation of the apartment site, Ecology ordered the Port to collect samples of sediment in 
the Lora Lake Property. The Lora Lake Property is located on the east side of Des Moines Memorial
Way in the City of SeaTac. Those sediments contained dioxin contamination that is presumed to have
migrated from the apartment site. It was also discovered that sediment had been dredged from th e lake
in 1982 and placed on Airport property located to the northeast of the lake in the DMCA. 
The Apartment parcel of the Lora Lake Apartment Site is located within the City of Burien's Northeast
Redevelopment Area (NERA).  The City and Port have partnered to prepare a redevelopment strategy
for the NERA. The redevelopment strategy identified the Lora Lake Apartment site appropriate for
large-scale commercial or industrial uses such as auto dealerships or air cargo logistics. 
To complete site cleanup, a City of Burien storm water line that crosses the Apartment site and
discharges into Lora Lake must be abandoned and relocated. The line currently conveys water from an
80-acre area of Burien located to the northwest of the former apartments and extends through the
contaminated soil excavation zone in an alignment that would conflict with future site development.
The City of Burien is relocating the pipe down 8th Avenue South and outside of the Apartment parcel
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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 3 of 8 
with support from an Ecology grant. Alternately, the Port would relocate the pipe within the Apartment
site in an alignment that would not conflict with future site development.  Moving the pipe outside of
the Apartment site is preferred as it would eliminate the introduction of storm water to the Lake property 
which could complicate the lake remedy design and future compliance monitoring.  Early pipe
relocation would facilitate implementation of the Apartment Site and Lake Property cleanup projects.
Therefore it is possible that the pipe relocation schedule could delay the remediation implementation and
result in additional cost. Should that occur, staff will return to the Commission for an increase in
authorization.
The Commission authorized the CEO to sign a previous version of the Lora Lake Apartment
remediation Consent Decree in September 2013. As a result of the input received during the public
comment period, Ecology made changes to the Consent Decree language and the scope of the cleanup,
and solicited a second round of public comments. This second public comment period ran from May 4,
2015 to June 17, 2015. A public meeting was held on May 13, 2015, where Ecology personnel
presented the proposed cleanup.
After completion of a public comment in May and June 2015, the Commission authorized entering into
the revised Consent Decree for the remediation of the Lora Lake Apartment Site in July 2015. The
Consent Decree and its exhibits describe in detail the agreement between the Port and Ecology on how
and when the site will be remediated, requirements related to future land use, payment of agency
oversight costs, and other conditions. 
Port staff and consultants have completed the remedial design to implement the conditions set forth in
the Consent Decree. 
PROJECT JUSTIFICATION AND DETAILS 
The overall goal of the site cleanup is to significantly reduce or eliminate the exposure of ecological and
human receptors to soil contamination and thereby reduce or eliminate adverse effects on resources in
the project site. In addition, cleanup of the apartment parcel will allow for its beneficial reuse. 
Project Objectives 
Perform the remediation work at the site in accordance with the Consent Decree. 
Manage and perform the work, with project controls and contract systems in place. 
Identify and consider community values and concerns, as part of a formal public participation
plan. 
Carry out the remediation design and implementation in a manner that considers the potential
needs of future development on the Lora Lake Apartment Site 
Remediate Lora Lake Property contaminated sediment in a manner that reduces wildlife hazard
to aircraft operations and enhances ecological functions. 
Scope of Work 
Cleanup of the Apartment parcel will consist of the removal of approximately 25,570 cubic yards of
dioxin-contaminated soil with a concentration greater than 100 parts per trillion (pptr). This soil will be
transported to a landfill permitted to accept this type of material. Soil remaining on the site with a
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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 4 of 8 
concentration less than 100 pptr, but above the cleanup level of 13 pptr will be covered with a barrier to
prevent direct contact with people or animals.  The City of Burien storm drain currently on the
Apartment parcel will be abandoned as part of this excavation. 
At the Lora Lake property, contaminated sediments will be capped by filling the lake with
approximately 38,500 cubic yards of clean fill, and restoring it to a wetland similar to the adjacent
Vacca farm wetland mitigation site. The fill will be engineered to immobilize the dioxin contained in
the lake sediments. Converting the Lake to a wetland clarifies that it will be subject to MTCA soil
standards rather than sediment standards. By converting the open water lake to a vegetated wetland, a
bird attractant presenting an aircraft operations hazard will be greatly reduced. In addition, adverse
water quality conditions in Miller Creek created by stagnating lake water will be eliminated. In addition
to capping the lake sediments, approximately 3,500 cubic yards of upland soil containing low levels of
dioxin will be removed from the Lora Lake property, and will be transported to a landfill permitted to
accept this type of material. 
Schedule 
Notice to Proceed:                         Q2 2017 
Construction Complete 
o  Lora Lake Fill Phase One:                Q3 2017 
o  Lora Lake Apartment Site:                Q4 2017 
Lora Lake Fill Phase Two: 
o  Restart                            Q2 2018 
o  Construction Complete                  Q4 2018 
FINANCIAL IMPLICATIONS 
All costs will be accounted for as environmental remediation liabilities and charged to expense in
accordance with Port Policy AC-9. The Airport Development Fund will be the funding source.
Total cost for the entire cleanup is currently estimated at $24.3 million. This is an increase of $4.8 
million since the last ERL authorization in December 2015. The increase is due to further definition of
contaminated soil at the Apartment Site and additional design tasks to collect data needed to design the
Lake Property remedy. The cleanup costs of the Lora Lake Apartments Site and the Lora Lake Property 
will be accounted for differently. The $11.5 million for cleanup at the Lake property will be accounted
for as an operating cost as the property is part of the object-free area within the runway protection zone,
and therefore no development is permitted. The Lora Lake Apartments Site is not necessary for airfield
operations (although a corner is in the controlled action area of the runway protection zone). The Port's
intent is to clean up the site in anticipation of sale. The $12.8 million clean-up costs for the apartments
parcel are being accounted for as non-operating costs. 
The costs are eligible for Remedial Action Grants from Ecology if and when funds for such grants are
available.  Currently this project has been granted $5,000,000.  An application for additional grant
dollars was submitted to Ecology for the 2015-17 biennium's, but was not funded by the state
legislature. The Lora Lake Apartments grant application is active and may be funded in the 2017-19
biennium. 
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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 5 of 8 
Budget/Authorization Summary              Capital  ERL Expense   Total Project 
Original Budget                            $0   $19,500,000   $19,500,000 
Lake Parcel Increase (Operating)                       $5,200,000    $5,200,000 
Apartment Parcel (Non-operating)                     $(400,000)    $(400,000) 
Total Budget Increase (Decrease)                 $0    $4,800,000    $4,800,000 
Revised Budget                           $0   $24,300,000   $24,300,000 
Previous Authorizations                       $0   $19,500,000   $19,500,000 
Current request for authorization                  $0    $4,800,000    $4,800,000 
Total Authorizations, including this request           $0    $24,300,000    $24,300,000 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost                    $0   $24,300,000   $24,300,000 
Budget Status and Source of Funds 
These projects are being authorized in the annual ERL program authorization requests. Authorizations
are recorded in previous Commission Memos.  All costs will be accounted for as environmental
remediation liabilities and charged to expense in accordance with Port Policy AC -9.  The Airport
Development Fund will be the funding source.
Project Cost Breakdown (Lora Lake             This Request       Total Project 
Apartments) 
Construction                              $10,540,000        $10,540,000 
Design                                  $1,370,000         $1,370,000 
State & Local Taxes (estimated)                   $880,000          $880,000 
Total                                     $12,790,000         $12,790,000 
Project Cost Breakdown (Lora Lake)             This Request       Total Project 
Construction                               $9,500,000         $9,500,000 
Design                                  $1,210,000         $1,210,000 
State & Local Taxes (estimated)                   $800,000          $800,000 
Total                                     $11,510,000         $11,510,000 
Financial Analysis and Summary 
CIP Category             Compliance 
Project Type              Regulatory 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        $5,200,000 (increase over previously expensed amount) 
Business Unit (BU)          Airfield Movement Area cost center (Lora Lake site) 
Effect on business performance  NOI after depreciation will increase 
IRR/NPV             N/A 
CPE Impact             $.23 in 2018 

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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 6 of 8 
Lifecycle Cost 
STRATEGIES AND OBJECTIVES 
This project will achieve the strategic objective of accomplishing cleanup of the Port's property, with
the intent of returning it to productive use. 
Remediation of the  Lora Lake Apartments Site will reduce  to acceptable levels threats to the
environment caused by historical property uses and operations, achieving compliance with regulatory
mandates, management of Port liabilities, and support of the local community, all in alignment with the
goals and objectives of the Century Agenda and Airport Strategies. Returning the property to productive
use benefits both the Airport and the local community. Completion of the site remediation, moreover, is
directly responsive to the Port's commitment to cooperative joint Port and City of Burien property
redevelopment. 
SMALL BUSINESS 
As part of the remediation process, there will be small business opportunities during the project that will
contribute towards its successful cleanup and rehabilitation of the area. Potential opportunities would
include soil removal, landscaping, traffic control, and stormwater related efforts. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Delay construction of both projects for one year. 
Cost Implications: $1,019,000 additional costs for one year delay 
Pros: 
(1)  Possible inclusion of design for future development 
(2)  Reduced construction overlap with City of Burien storm water realignment 
Cons: 
(1)  Possible added scope increases cost and further delay 
(2)  Non-compliance with Consent Decree 
This is not the recommended alternative. 
Alternative 2  Authorize Lora Lake Apartment Site Remediation only; delay Lora Lake Fill for
one year. 
Cost Implications: $483,390 additional cost of one year delay for Lake property only 
Pros: 
(1)  Reduce immediate cost 
(2)  Would meet compliance obligation for remediation 
(3)  Clean-up will be completed for resale/redevelopment of apartment parcel 
Cons: 
(1)  Cost increase of Lora Lake Fill/Remediation project 
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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 7 of 8 
(2)  Non-compliance of Ecology ordered cleanup of contaminated sediment at the Lora Lake
parcel and with Consent Decree. 
This is not the recommended alternative. 
Alternative 3  Authorization of the proposed advertisement, bid and execution of construction
contract of these projects. 
Cost Implications: $24,300,000 
Pros: 
(1)  Fulfilment of the Port's environmental obligations for both sites 
(2)  Provides regulatory certainty for the remediation process 
(3)  Remediation will be complete in 2017 and the apartment site prepared for redevelopment
and productive use 
Cons: 
(1)  Staff could not identify any possible negative aspects to this alternative. 
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
PowerPoint showing Vicinity Map and Remidiation Details 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
December 8, 2015  The Port Commission authorized spending of environmental remediation
liability funds for 2016 in the amount of $13,900,000 and approved a five-year spending plan of
$71,700,000 for the Environmental Remediation Liability Program for the Seaport, Real Estate,
and Aviation Divisions for 2016-2020, including the Lora Lake Apartment site. 
July 14, 2015  The Port Commission authorized execution of a revised Consent Decree for the
design and implementation of the environmental remediation for the Lora Lake Apartments Site,
design of environmental remediation at the site, and amendment of the Floyd|Snider Service
Agreement to complete additional design work for an estimated amount of $985,000. 
December 9, 2014  The Port Commission authorized a five-year spending plan of $64,088,000
for the Environmental Remediation Liability (ERL) Program for the Seaport, Real Estate, and
Aviation Divisions for 2015-2019; and environmental remediation liabilities funds for 2015 in
the amount of $36,804,000. $16,804,000 is forecasted to be spent in 2015 and an amount
estimated not to exceed $20,000,000 of the remaining funds approved in the five-year plan will
be obligated to be spent 2016.  The Lora Lake Apartments Property was included in that
authorization request.
September 24, 2013  The Port Commission authorized execution of a Consent Decree for 
design and implementation of the environmental remediation design and preparation of 
construction documents for Lora Lake Apartment Site and Lora Lake Parcel. 
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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 8 of 8 

December 4, 2012  The Port Commission authorized an amendment to the 2009 Agreed Order, 
design and preparation of construction documents and amendment of the professional services
agreement for environmental remediation at Lora Lake Apartments to $4.4 million. 
December 4, 2012  The Port Commission authorized 2013 expenditure of $44,179,000 from
Port Environmental Reserve funds, for environmental remediation including the Lora Lake
Apartments Property. 
December 6, 2011  The Port Commission authorized 2012 expenditure of $56,500,000 from
Port Environmental Reserve funds, for environmental remediation including the Lora Lake
Apartments Property. 
June 9, 2009  The Port Commission authorized execution of an agreed order with Ecology,
issued under MTCA, for environmental investigation and remediation of the Lora Lake
Apartments Site. 
May 5, 2009  The Port Commission authorized procurement of environmental consulting
services to support the Port's implementation of the Lora Lake Apartments Property remediation. 










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