COMMISSION 
AGENDA MEMORANDUM                Item No.       4i 
ACTION ITEM                   Date of Meeting    December 13, 2016 
DATE:    December 5, 2016 
TO:     Ted Fick, Chief Executive Officer 
FROM:   Ralph Graves, Senior Director, Capital Development 
Janice Zahn, Assistant Engineering Director, Construction Services 
SUBJECT:  Terminal 91 Tank Farm Cleanup Change Order 16 
Amount of this request:                $0 
Total estimated project cost:       $7,004,791 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer toexecute Change Order 16 
to Contract MC-0317586, Terminal 91 Tank Farm Cleanup, extending the contract duration by
280 days. This Change Order additionally includes a settlement of an amount not to exceed 
$256,000, which will come from existing project contingency funds.
EXECUTIVE SUMMARY 
The execution of this Change Order settles all disputes related to the project Work with the
Contractor, Clearcreek Contractors, Inc. The Change Order includes a cost not to exceed
$256,000 and reconciles the Contract Completion Date with the actual completion date of the
work by increasing the project duration by 280 days. The execution of this Change Order
resolves all cost and time components for this contract. The final contract value will be 
$3,293,000. 
JUSTIFICATION 
In support of the Century Agenda strategy to be the greenest port in North America, this
project accomplishes environmental cleanup of Port property. The Port is required to complete
cleanup action of Terminal 91 (T-91) in accordance with the 2012 Agreed Order. The purpose
of the cleanup is to significantly reduce or eliminate the exposure of ecological and human
receptors to soil contamination, ground water, and sediment, by significantly reducing or
eliminating adverse effects on resources in the project site. The cleanup restores the site for 
future uses compatible with current industrial zoning. 


Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 4i                        Page 2 of 4 
Meeting Date: December 13, 2016 
DETAILS 
On March 6, 2014, the Port executed a construction contract with Clearcreek Contractors, Inc.
for the amount of $3,931,321.74 and a contract completion date of September 26, 2014. The
contract duration was previously increased by 39 calendar days via executed change orders for
a new completion date of November 4, 2014. Actual Substantial Completion was not achieved
for the project until August 21, 2015, a project delay of 280 calendar days. Although completed
late, the monitoring data obtained since the completion of the project are satisfactory. The
project delays are attributable to a number of reasons. The primary cause is unexcused delay
on the part of the contractor in completing the work and in submitting all required close-out
documentation in a timely manner. In Dispute Resolution Proceedings, the Port acknowledged
multiple differing site conditions that should have been compensated for during construction.
These conditions added cost entitlement as well as time entitlement which need to be
accounted for in the contract by issuing a Change Order. The time component of this change
order includes days related to Port caused delay (approximately 30 days), concurrent delay 
(approximately 30 days), and Contractor caused delay (220 days). The cost component related
to this change order include settlements on all outstanding disputes related to differing site
conditions (Port risk > $2 75,000), Bid Item quantity under and overrun adjustments
(approximately $228,000). The final settlement includes a credit back to the Port for impacts
associated with Contractor-caused project schedule delay of approximately $160,000. 
Scope of Work 
The T-91 Tank Farm Cleanup project restores the area affected by previous owners' use of the
property for distribution and storage of petroleum products, to other uses consistent with the
current terminal operations. The work included the removal of old tank bases, pipelines, and
contaminated soil from the affected areas. Additionally, the measures to contain and monitor
any contamination which could not be removed were installed. 
Schedule 
Activity 
Commission design authorization          2012 Quarter 2 
Design start                          2012 Quarter 2 
Commission construction authorization       2013 Quarter 3 
Construction start                      2014 Quarter 1 
In-use date                          2015 Quarter 3 




This version as revised 9/16/2016

COMMISSION AGENDA  Action Item No. 4i                        Page 3 of 4 
Meeting Date: December 13, 2016 
Contract Cost Breakdown             Total 
Original Contract Amount             $3,931,321.74 
Current Executed Change Order Amount    $ 91,366.88 
Current Bid item Adjustments           ($985,445.01) 
Current Contract Amount             $3,037,243.61 
Change Order #16 Not to Exceed Amount   $ 256,000.00 
$3,293,000.00 
Final Estimated Contract Amount with CO
#16 
Final  Estimated  Remaining  Contract  $1,038,321.74 
Contingency 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do not authorize the issuance of the Change Order, continue further Dispute
Resolution processes. 
Cost Implications: Additional staff soft costs, potential legal expenses. 
Pros: 
(1)   Further negotiation may reduce the amount of the settlement. 
Cons: 
(1)   Delays project closeout and increases Port costs to continue negotiations. 
(2)   Creates a risk potential for litigation. 
This is not the recommended alternative. 
Alternative 2  Authorize the issuance of the Change Order for the amount of $223,306.82 and
280 calendar days. If executed, this will be the final Change Order on this project and settles all
outstanding claims with the Contractor to close out the Contract. 
Cost Implications: None 
Pros: 
(1)   Settles all claims with the Contractor and allow contract close-out to commence. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
There is no additional funding being requested in this memo. The project has adequate
contingency to cover this request. 


This version as revised 9/16/2016

COMMISSION AGENDA  Action Item No. 4i                        Page 4 of 4 
Meeting Date: December 13, 2016 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
August 6, 2013  The Commission authorized the advertisement and execution of a major
construction contract, and to self-perform using Port crews, to implement the cleanup
action at Terminal 91. 
December 4, 2012   Commission authorized $44,179,000 spending in 2013 for
Environmental Remediation Liabilities.
March 27, 2012  Commission authorized the Chief Executive Officer to execute Agreed
Order No. DE 8938 with the Washington State Department of Ecology on the
implementation of a Cleanup Action Plan and to address contamination in the Upland area
of Terminal 91. 
May 4, 2010  Commission authorized the Chief Executive Officer to execute the 2010
agreed order with the Washington State Department of Ecology. 












This version as revised 9/16/2016