PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4h 
ACTION ITEM 
Date of Meeting    September 11, 2014 
DATE:    September 2, 2014 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Joe McWilliams, Managing Director, Real Estate Division 
Kathy Bahnick, Manager Environmental Programs Seaport Environmental &
Planning 
SUBJECT:  Granting Easement to Seattle Public Utilities for Stormwater Drainage Facilities
and Outfall across Terminal 117. 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to grant a non-exclusive
Stormwater Easement to the City of Seattle's Seattle Public Utilities (SPU) to accommodate the
construction, operation, maintenance and monitoring of City-owned  stormwater drainage
facilities and an outfall located under, across and on Terminal 117 (T-117) and adjacent aquatic
land. 
SYNOPSIS 
The stormwater outfall extends from Dallas Avenue across and under the T-117 uplands, and
discharges on adjacent aquatic land.  The City would pay nothing for the easement, but
considerations are included that inure to the Port's benefit. The term of the Construction
Easement is six months. The term of the Operation Easement is 30 years, and may renew for
two additional 30year terms to a maximum of 90 years. 
BACKGROUND 
Remediation History 
Since 2000, the Port, King County, the City, and the Boeing Company have been conducting an
investigation of sediment contamination in the Lower Duwamish Waterway (LDW) Superfund
Site under an administrative order issued by the U.S. Environmental Protection Agency (EPA).
Assessment activities identified a number of localized contaminated areas that EPA determined
should be addressed through cleanup actions taken prior to a final EPA determination of cleanup
requirements for the LDW as a whole ("Early Action Areas"). One such location is T-117 - 
specifically the sediments, adjoining bank and upland area at T-117, and the City streets and
residential yards adjacent to T-117. 
Following EPA's decision to list the LDW as a federal Superfund site and its subsequent 
designation of the T-117 sediment site as an "Early Action Area" in May 2003, the Port and the
City entered into a Memorandum of Agreement to jointly fund the investigation and remediation

Template revised May 30, 2013.



COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 2, 2014 
Page 2 of 4 
of contamination within the sediments and in the adjoining bank area of this Early Action Area.
In December 2005, the Port, the City and the EPA entered into an Administrative Settlement
Agreement and Order on Consent for Removal Action at the T-117 Early Action Area (the "2005
Order").
During the investigation of the bank area, areas of contamination above action levels
("hotspots") were discovered on T-117 uplands that required immediate action. In June 2006,
the Commission agreed to enter into a new Order (the "2006 Order") to conduct a time-critical
removal action. The cleanup of the hotspots required under the 2006 Order was performed that 
summer. 
Subsequent investigations of the upland area by the Port and adjacent streets and residential
yards by the City resulted in an expanded area of cleanup. These changes were formally
established in a revised Statement of Work, which was approved by the EPA in September 2007,
and which replaced the Statement of Work for the 2005 Order. 
In July 2008, the Port entered into a Settlement, Indemnity and Release Agreement ("the T-117
Settlement Agreement") with the City of Seattle, the Malarkey Asphalt Company, and other
parties. As one part of this agreement, the City agreed to pay 100% of the costs for the cleanup
of the adjacent streets and residential yards. The stormwater drainage facilities and outfall that
are the subject of this Commission action are part of the cleanup of the adjacent streets and
residential yards, and therefore are the sole financial responsibility of the City. 
The final T-117 cleanup plan was formally approved by the EPA in an Action Memorandum
dated September 30, 2010, and in 2011 the Port and the City formally committed to conducting
the required cleanup, by entering into an Administrative Settlement Agreement and Order on
Consent (the "2011 Order"). The 2011 Order requires that the City and Port cooperate with each
other on the various cleanup projects. 
Stormwater Discharge System 
As part of the cleanup of the adjacent streets and residential yards, the City is required to design
a permanent stormwater discharge solution. The option selected by the City and approved by the
EPA was to construct an outfall located on the Port's T-117 property. This option was selected
for the following reasons: 
Lowest cost 
Outfall goes through T-117 property, which served as the predominant pre-existing
natural stormwater overland flow path 
The outfall pipeline route traverses the recently cleaned T-117 property 
If the Port decides to construct habitat at T-117, outfall construction sequence and
schedule will allow this 
The ability to maintain the outfall pipeline without significant obstacles 
The implementation of the Port's cleanup project at T-117 is projected to be completed by March
2015.  The City will begin its adjacent streets and yards cleanup, and associated stormwater
facility construction, in March 2015. The City's stormwater construction is projected to be
completed in August 2015.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 2, 2014 
Page 3 of 4 

Port staff has completed its due diligence, and obtained and reviewed all relevant documentation
relating to the proposed stormwater drainage facilities and outfall. Additionally, the Port's Legal
Department drafted the Stormwater Easement, which was then  reviewed by both the
Environmental and Risk Management Departments. 
Easement Consideration to the Port 
In considering the Stormwater Easement, Port staff reviewed the  plans for construction,
operation, maintenance, and monitoring of the stormwater facilities and outfall with the interests 
of safety, environmental risk, and current and future uses of T-117 in mind. The easement is
nonexclusive, thereby allowing appropriate future uses on the aboveground property. The City is
indemnifying and holding the Port harmless from all environmental liabilities related to the
City's use of the easement property. The Port has the ability to amend the conditions of the
easement during the term under certain situations. These specific provisions, among others, are
benefits that provide consideration for the grant of the easement. 
If the request for an Easement is denied, the City does possess appropriate condemnation
authority to acquire the property. Alternately, the EPA could order the Port to grant access. 
Given the need and public benefit of the project, and the legal protection provided in the
easement language, staff recommends granting the easement request. 
ATTACHMENTS TO THIS REQUEST 
Stormwater Outfall Easement Agreement (drafted and fully negotiated) 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
March 26, 2013  The Commission authorization for the Chief Executive Officer to: 1)
purchase southern portion of the South Park Marina float structure to accommodate habitat
restoration in the estimated amount of $194,000; and 2) complete permitting, and design for a
public access viewpoint pier at Site 23 for an estimated cost of $458,000. 
November 6, 2012  The Commission authorized advertise and execute a major construction
contract, and to execute a contract to provide environmental consultant services for a removal
action (cleanup) at the T-117 Early Action Area cleanup site required under an
Administrative Settlement Agreement and Order on Consent that the Port entered into on
June 8, 2011. 
June 7, 2011  The Commission authorization for the Chief Executive Officer to: 1)
Complete permitting and design of an expanded fish and wildlife habitat restoration project
at Terminal 117 (T-117) for an estimated cost of approximately $3,021,000; and 2) execute a
contract for outside professional services to complete the permitting and design of the habitat
restoration project at T-117.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 2, 2014 
Page 4 of 4 
December 6, 2011   The Commission authorized $56,500,000 for the 2012-2016
Environmental Remediation Liability Program, including spending of $23,600,000 for
environmental liabilities in 2012. 
May 24, 2011  The Commission authorized the Chief Executive Officer to execute an
Administrative Settlement Agreement and Order on Consent for removal action
implementation at Terminal 117, an EAA for the Lower Duwamish Waterway Superfund. 
June 1, 2010  The Commission authorized the Chief Executive Officer to execute a
Category III professional services contract to provide consultant services and support for
planning and pre-design; design services, construction and monitoring support, and postconstruction
monitoring for the 2011 Order. 
May 24, 2010  The Commission approved execution of an Administrative Settlement
Agreement and Order on Consent for Removal Design/Removal Action at the T-117 Early
Action Area. 
November 30, 2009  The Commission approved the authorization to perform pollution
remediation activities relating to environmental reserve funds in 2010. 
October 27, 2008  The Commission authorized the Chief Executive Officer to Sign a
Settlement, Indemnity and Release Agreement with the Malarkey Parties, the Duwamish
Parties, the City of Seattle, and King County regarding T-117 Site and Lower Duwamish Site
Cleanup Costs, and Natural Resource Damage Liability. 
June 27, 2006  The Commission (1) approved execution of Administrative Settlement
Agreement and Order on Consent for Time Critical Removal Action in the T-117 Upland
Area; (2) directed staff to develop a work plan to expand the cleanup options in the T-117
Upland Area and (3) amended the 2006 project-wide authorization expenditure in the amount
of $6,000,000. 
October 11, 2005  The Commission approved execution of (1) Administrative Settlement
Agreement and Order on Consent for Removal Action T-117 Early Action Area; and, (2)
Administrative Settlement Agreement and Order on Consent for the T-117 Upland
Investigation. 
August 24, 2004  The Commission approved execution of the Memorandum of Agreement
(Cost Allocation) between the Port and the City of Seattle for Malarkey Early Action Area. 
August 24, 1999  The Commission approved the purchase and sale agreement for the
acquisition of the Malarkey Asphalt Property at a cost of $176,400 and implementation of
required environmental cleanup measures on adjoining Port property at a cost not to exceed
$800,000.