PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      6d 
Date of Meeting     June 22, 2010 

DATE:    May 20, 2010 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Paul Meyer, Manager, Environmental Permitting and Compliance 
Michael Kuhlmann, Capital Construction Project Manager, Seaport 
SUBJECT:  Terminal 10 Utility Infrastructure Upgrade Project 
CIP #C800264 
Amount of this request: $180,000     Source of Funds: General Fund 
Total Project Cost: (Estimate) $6,700,000 
ACTION REQUESTED:
Request authorization for the Chief Executive Officer to approve spending an additional
$180,000 to allow Port of Seattle staff and the project consulting team to continue work
necessary for final approvals essential to the Terminal 10 (T-10) utility improvement
project. 
SYNOPSIS:
The Port purchased Terminal 10 from Lockheed in 1997 to use as a container cargo
marshalling area, including containers on chassis and drayage trucks serving container
cargo sites in south Elliott Bay. Lockheed had operated a shipyard at the Harbor Island
site for more than five decades and had conducted upland clean-up action before the Port
bought the property. However, in order to ensure appropriate, controlled use of the T-10,
the utility infrastructure must be improved with particular emphasis on installing a
replacement storm water drainage system, as well as site leveling and paving, new
lighting, laying out parking and vehicle use areas and installing fencing and access
controls. After this project is completed, Terminal 10 will support the Seaport's longterm
growth by providing valuable container workspace and drayage truck parking. 
The cost of this project has risen significantly from an original estimate of $4,412,000 to
$6,700,000 because of higher engineering and permitting costs and the need for extended
review by various federal, state and local government agencies. Costs have also risen
because of the addition of site lighting, soil disposal costs and ground and storm water
collection/disposal costs during construction. The Commission originally approved

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 20, 2010 
Page 2 of 9 
$530,000 on March 25, 2008, to complete 100% design and permitting. This request was
based on preliminary work done in 2007 which did not anticipate the level of engineering
and environmental support necessary for the proposed site improvements. The
Commission approved an additional $270,000 on April 14, 2009, to include design of a
replacement storm water conveyance system, including a new outfall to the West
Waterway and to provide resources for regulatory review. This review has required
additional staff resources, not anticipated in the original budget, to address detailed
requests for analysis and evaluation by agency reviewers. 
Final regulatory approvals are expected in the later part of the third quarter, but, if they
take longer, this request will fund the T-10 project for approximately 10 months. All
work in this request is expected to be substantially complete by September 30, 2011. 
Following approval by the regulatory agencies, staff will return to the Commission to
request construction funding. 
BACKGROUND: 
T-10, including approximately 11 acres located on Harbor Island between the West
Waterway and 16th Avenue SW, just south of SW Lander Street, was purchased in 1997 
after upland clean-up actions were conducted by Lockheed, operator of a shipyard at the
site for more than five decades. The Port intends to use T-10 as a container cargo
marshalling area, including containers on chassis and drayage trucks serving container
cargo sites in south Elliott Bay. In order to ensure appropriate, controlled use of the site, 
utility infrastructure at the former shipyard site requires improvement, including: 
(1)   Installation of a replacement storm water conveyance system; 
(2)   Site leveling and placement of a uniform upland pavement vehicle use surface and
cap; 
(3)   Installation of lighting; 
(4)   Layout of parking and vehicle use areas; and, 
(5)   Installation of fencing and access control. 
These upgrades are intended to meet City of Seattle code requirements for continuing use
of the site. As discussed more below, the Port's site improvements will also support
environmental obligations that arise from Consent Decrees applicable to the site. and the
Purchase and Sale Agreement with Lockheed. With utility improvements complete, the
site's commercial potential for either temporary or long term container cargo use 
increases substantially. Since acquisition of T-10, the site has been used for stockpiling 
and lay-down of structural materials used in cargo facility construction and for temporary
container cargo activities. A portion of the site is dedicated to overflow parking for Todd
Pacific Shipyard employees, a use required by terms of a previous agreement. 
On March 25, 2008, Commission approved $530,000 for staff to complete 100% design
and permitting for improving the upland area at Terminal 10 for use in support of

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 20, 2010 
Page 3 of 9 
container cargo operations, including construction of necessary storm water
infrastructure. Staff has not been able to complete the design and obtain all necessary
project approvals for the approved $530,000 because the original design and permitting
budget was based on preliminary work completed in 2007 and did not anticipate the level
of engineering and environmental support necessary for the proposed site improvements. 
On April 14, 2009, Commission approved an additional $270,000 to include design of a
replacement storm water conveyance system, including a new outfall to the West
Waterway, and to provide resources for regulatory review of the proposed storm water
system improvements by federal and state agencies, the City of Seattle, and the
Muckleshoot Indian Tribe. The Port has made substantial progress in reviewing the
project with participating agencies, including preparation of three alternative storm water
outfall designs, obtaining project approval from the Washington State Department of Fish
and Wildlife, and approval from the U.S. Fish and Wildlife Service and the National
Marine Fisheries Service. However, project review has required substantial unanticipated
staff resources to address numerous detailed requests for additional analysis and
evaluation by agency reviewers. As a result of these delays, the total additional project
costs are estimated at $1,550,500. 
Sediment and Upland Soil Cap Issues 
T-10 is located within an operable unit of the Harbor Island Superfund site, managed by 
the Environmental Protection Agency (EPA). There are two operable units (OUs): the
upland section (now T-10) is called the Lockheed Shipyard Number One OU, and the
sediments are called the Lockheed Shipyard Sediments OU. The upland site was
purchased by the Port in 1997 from Lockheed as an element of the Terminal 18
Redevelopment Project. Prior to the sale, Lockheed demolished some of the shipyard
facilities, performed soil clean up required by EPA, and installed areas of asphalt cap to
isolate remaining upland contaminated soils. In 2004, Lockheed sediment cleanup actions
including removal of nearly 3.4 acres of overwater creosote piling dock and platform
structures, approximately 950 linear feet of steel and concrete bulkheads, and dredging of 
significant volumes of contaminated sediments in the adjoining aquatic area. A five feet
thick sediment cap was installed in aquatic area adjacent to the former shipyard,
including approximately 4.3 acres, over the dredged area 
In the Purchase and Sale Agreement, the Port agreed to be responsible for maintaining
the upland cap, which currently consists of irregularly sloped areas and a patchwork of
concrete and asphalt surfaces. EPA views control of site storm water as necessary to
protect the sediment cap and to avoid infiltration of the upland cap and associated
negative effects on site groundwater. To address this concern, the Port has proposed
installation of a replacement storm water conveyance system, including storm water
treatment vaults and a new outfall, in conjunction with the implementation of operational
best management practices to prevent recontamination of the sediment cap and to avoid
disruption of upland soil/groundwater conditions.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 20, 2010 
Page 4 of 9 
Storm Water Drainage Issues 
At present, approximately 80 percent of the T-10 site has no working storm drainage
system and storm water simply drains to low points throughout the site, forming large
pools of standing water, or sheet flows over the bank line of the site into the adjacent 
West Waterway and sediment cap. Site drainage conditions must be improved before the
terminal can be used for container cargo operations. Improvement of the storm water 
conveyance system must be consistent with state and City of Seattle requirements,
including installation of two storm water treatment vaults, ensuring control of site
drainage discharged to the West Waterway. The drainage improvements, site leveling,
and new four inch thick pavement surface will support container cargo use of the site,
consistent with City of Seattle industrial zone and shoreline use requirements. As a
component of marine cargo activities at T-10, the Port anticipates use of the site by 
container drayage trucks as an alternative to drayage truck parking in areas south of
marine cargo facilities. 
Permit Review 
Following submittal of land use and state and federal permit applications in September
2009, the Port has been actively working with the City of Seattle, state and federal
agencies, and the Muckleshoot Indian Tribe to move the project forward. In particular, 
the Port has worked with EPA to determine the most appropriate means for more
productive use of the property. The replacement storm water system has been redesigned
to meet agency requirements. After extensive review of anticipated storm water discharge
conditions, EPA, U.S. Fish and Wildlife Service, and the National Marine Fisheries
Service have agreed with the best management practices and storm water treatment
facilities the Port plans to use at the site. In addition, the proposed utility improvements
have been approved by the Washington State Department of Fish and Wildlife. The Port
expects final approval of City of Seattle shoreline and the federal Corps of Engineers
permits in the coming two months. Two significant actions remain for the proposed 
infrastructure project: (1) authority to place the proposed storm water outfall in aquatic
area managed by the Washington State Department of Natural Resources and (2)
ensuring that the proposed storm water discharge is consistent with Lockheed's
requirement for long-term maintenance of the sediment cap on the east shoreline of the
West Waterway. The latter two items will require technical, legal, and environmental
resources during the coming months. 
PROJECT DESCRIPTION AND JUSTIFICATION: 
Project Statement: 
This is a request for $180,000 additional project funds to support permit review and
approval.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 20, 2010 
Page 5 of 9 
Project Objectives: 
Improve infrastructure at T-10 for effective marine cargo operations. 
Improve and use T-10 consistent with agency requirements. 
Minimize future maintenance and repair work. 
Project will be managed and completed on budget. 
Project will be delivered on time to meet schedule milestones. 
Ensure acceptable operational standards. 
Meet strategic asset management criteria. 
Scope of Work and Schedule: 
This project would involve the Port contracting to install utility infrastructure
improvements ensuring long-term stable, useable site conditions. 
This work will be bid in the fourth quarter of 2010 and construction will take place
during the second and third quarter of 2011. Completion is scheduled by September 30,
2011. 
The original project estimate was $5,150,000. The current estimated cost is $6,700,000.
The increased project cost from $5,150,000 to $6,700,000 is the result of these items: 
Addition of site lighting                                    $760,000 
Additional ground and storm water collection/disposal costs          $235,000 
during construction 
Additional soil disposal costs                                $375,000 
Additional costs related to permits and associated design            $180,000 
revisions 
Total Additional Project Costs                             $1,550,000 
STRATEGIC OBJECTIVES: 
This project supports the Port's strategies to "Ensure Airport and Seaport Vitality" and
"Exhibit Environmental Stewardship through our Actions". 
Improves air quality and decreases greenhouse gas emissions in the Duwamish
industrial area by reducing container cargo truck drayage travel times and miles
traveled serving south harbor industrial facilities, including adjacent public roadways. 
Improve community relations by providing operators of drayage vehicle/equipment a
near terminal staging and use area, as an alternative to parking in public right-of-way
areas throughout the Duwamish Industrial area and nearby neighborhoods. 
Fulfills Port and City storm water quality requirements for intended uses.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 20, 2010 
Page 6 of 9 
Provides storm water upland source controls for storm water runoff protecting the
sediment cap from contamination. 
Best management practices will be implemented by the Port in the selection of materials,
work practice and ongoing total cost of ownership. 
BUSINESS PLAN OBJECTIVES: 
Provides needed container cargo marshalling area for use by drayage trucks directly
related to movement of cargo to and from the terminals, consistent with regulatory
requirements. 
Improve T-10 marketability and utilization by installing utilities necessary for
commercial use as a cargo support area. 
FINANCIAL ANALYSIS: 
Budget/Authorization Summary 
Original Budget                                                  $0 
Previous Authorizations                                         $800,000 
Current request for authorization                                     $180,000 
Total Authorizations, including this request                             $980,000 
Remaining budget to be authorized (estimated construction costs)               $5,720,000 
Total Estimated Project Cost (pending final design)                        $6,700,000 
Project Cost Breakdown 
Design                                                   $536,000 
Project Management                                        $218,000
Permitting                                                   $226,000 
Subtotal  this request                                         $980,000 
Estimated Construction Costs                                    $5,720,000 
Estimated Total Project Costs                                     $6,700,000 
Source of Funds 
The project was included in the 2010 Plan of Finance as a committed project under
CIP# C800264, T-10 Interim Development, in the amount of $4,412,000. The additional
$2,288,000 required to fund the balance of this project is available due to lower than
anticipated spending on other 2010 Plan of Finance Committed projects, such as the
Terminal 104 Site Improvements. 
With the exception of the Environmental Reserve work described below, the cost of this
project will be funded from the General Fund.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 20, 2010 
Page 7 of 9 
It is expected that approximately $610,000 of the project construction costs including
disposal of contaminated soil, stormwater and groundwater will be GASB 49
environmental work and, accordingly, will be paid out of operating Environmental
Reserves. The source of funds for the environmental portion of the project will be the tax
levy.
Financial Analysis Summary 
CIP Category            Renewal/Enhancement 
Project Type              Renewal & Replacement 
Risk adjusted Discount rate    8.5% 
Key risk factors              Environmental remediation costs will be determined by 
the final design of the storm water outfall system. 
Future operating income from this project is uncertain.
While the proposed project would enable the site to be
used for either interim drayage truck parking or
container cargo marshalling in support of container
terminal operations, there are currently no lease
negotiations underway for this site. 
It is unlikely that revenue generated from potential
future leasing opportunities will support the level of
investment required for this project. 
Project cost for analysis       $6,700,000 (current cost estimate) 
Business Unit (BU)          Container Support Properties 
Effect on business performance   Effect on business performance is pending until final
project cost estimate from completion of design effort is
available, and determination of market demand for future
use is known. 
Incremental depreciation for this project is estimated at
$284,000/yr. 
IRR/NPV             To be determined by future leasing efforts. 
ENVIRONMENTAL SUSTAINABILITY/COMMUNITY BENEFITS; 
Specifications will encourage recycling asphalt, concrete, creosote timber foundation
and metal debris removed from the project area as either construction material or as a
source of energy. 
Off-site disposal of excavated soils has been minimized. However, in order to
upgrade the site infrastructure, excavation is required to install utilities. The project
represents a net disposal of in-ground materials. 
The site contains contaminated soil from the previous owner's operations. Any
contaminated soil not replaced into required excavated trenches will require offsite
disposal at an approved facility.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 20, 2010 
Page 8 of 9 

ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1 - No Action. This alternative does not allow for continuing interim or 
long term uses of T10. EPA may still require the Port to place proper storm water 
controls to protect the upland and sediment caps. Alternative 1 is not recommended. 
Alternative 2  Installation of upland drainage system and routing to existing eight
inch outfall. This would partially address the storm water conditions, although
ponding and surface flow from the site would not be corrected due to insufficient
discharge capacity. This system would not comply with Port requirements or City of
Seattle Storm water Drainage Code. This alternative only provides paving for areas
disturbed during installation of the drainage system. Engineering analysis indicated
that the existing 2-6 inch thick cap will not support continuous truck traffic. Cost of
this alternative is estimated at $3,700,000. Alternative 2 is not recommended. 
Alternative 3  Fully develop the site for a cargo support area with the improvements
to container yard standards. Cost for complete development to container yard
standards, which includes complete lighting system, fire protection and additional
asphalt paving is estimated at $8,000,000 - $10,000,000. Revenue from this site
would not justify this level of investment at this time and the site can always be
retrofitted to such standards cost effectively at a later date. Alternative 3 is not
recommended. 
Alternative 4  Installation of utilities and paving improvements necessary for
the use of the site for container cargo marshalling and associated drayage
vehicles: These improvements will also allow for safe and clean operation of T-10
as a cargo support area, a use consistent with previously established uses at the
site. As a component of marine cargo activities, portions of the site would be 
used for staging of trucks and vehicles directly engaged in transshipment of
cargo between Port marine terminals and other transportation facilities. This
alternative includes a new 30-inch outfall and asphalt overlay of the site. This
system would comply with Port requirements and/or City of Seattle Storm water 
Drainage Code, and provide necessary storm water controls to protect the
sediment cap as required by the EPA. Cost of development is estimated at
$6,700,000. This is the recommended alternative. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
Below is a chronology of events and staff actions, including funding authorizations via
re-delegated authority: 
On March 25, 2008, Commission approved $530,000 to complete 100% design and
permitting for the redevelopment of T10 uplands into truck parking.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 20, 2010 
Page 9 of 9 

On September 2, 2008, Commission was advised by staff that: 
o  Costs for 100% design and permitting may exceed the authorized amount of
$530,000 by up to several hundred thousand dollars. 
o  Staff will proceed only with 30% design to better quantify risks specifically
involving use of the site with only the existing asphalt cap and permitting a new
30 inch outfall. 
o  Staff will plan to return to Commission in public session to describe the findings
and request additional funding for design and permitting if necessary. 
On April 14, 2009, Commission approve an additional $270,000 to include a new
storm water outfall in the permitting and design; and to accommodate increased costs
associated with the Environmental Protection Agency (EPA) and City coordination
on construction issues.