6b Terminal 5 Superfund Project Memo

COMMISSION 
AGENDA MEMORANDUM                        Item No.          6b 
ACTION ITEM                            Date of Meeting     February 11, 2020 
DATE:     January 24, 2020 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Ticson Mach, Capital Project Manager V 
Brick Spangler, Senior Environmental Program Manager 
Kaitlyn Jensen, Assistant Project Manager 
SUBJECT:  Terminal 5 Pacific Sound Resources (PSR) Superfund Cap Maintenance (CIP #102722) 
Amount of this request:                       $0 
Total estimated project cost:          $1,935,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to advertise and execute a
construction contract for the Terminal 5 Pacific Sound Resources Superfund Cap Maintenance
project with a total project cost of $1,935,000. There is no funding requested; construction will
utilize approved environmental remediation and liability funding. 
EXECUTIVE SUMMARY 
This project will maintain the environmental asphaltic cap over the PSR Superfund Site in the
northwest part of Terminal 5 to remain in compliance with the 1999 Environmental Protection
Agency (EPA) Record of Decision (ROD). The PSR site, located within the Terminal 5 intermodal
yard and adjacent BNSF storage track area, was cleaned up under an order with the EPA as part
of the Terminal 5 Southwest Harbor redevelopment project. The area of the asphaltic
pavement cap is 1,002,389 square feet. The estimated remaining service life is 10 years. The
asphalt  serves  to  cap  the  underlying  contaminated  soils.  Ongoing  obligations  include
performing cap inspections and cap maintenance.   In December of 2018, the required
inspection indicated maintenance is needed to be compliant with the ROD.  This will be
achieved by sealing cracks, repairing pavement damage, and restoring the surface seal coating
to prevent water intrusion into the underlying soil.  Duration for design and permitting, which
began in June 2019, is eight months and duration for construction is three months.  Planned
date of substantial completion is November 30, 2020. 
JUSTIFICATION 
An EPA required inspection in December 2018 of the PSR Superfund Site indicates this work is
necessary to maintain compliance per the Port's legal agreement with the agency.
Noncompliance could result in regulatory jeopardy and fines and/or penalties. 

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 6b                                  Page 2 of 4 
Meeting Date: February 11, 2020 
Diversity in Contracting 
There will be a woman and minority business enterprise (WMBE) aspirational goal of six 
percent associated with this contract. 
DETAILS 
Scope of Work 
This project will restore and reseal specially-designed asphaltic pavement cap areas within the
Terminal 5 intermodal yard, Jack Block Park and adjacent BNSF storage track area.  Restoration
components include establishing and maintaining temporary erosion and sediment control
(TESC) measures, cleaning and repair of pavement cracks, localized wear lift replacement in
areas of pavement damage, and restoration of the surface seal coat to meet the requirements
of the Inspection and Maintenance Plan for the Asphalt Cap and Associated Stormwater System
Revision 1, Pacific Sound Resources Site Remediation Area 4, Southwest Harbor Cleanup and
Redevelopment Project (The RETEC Group, Inc. 2004). 
Schedule 
Activity 
Commission design authorization               Q4 2018 
Design start                                       Q2 2019 
Commission construction authorization          Q1 2020 
Construction start                                Q3 2020 
In-use date                                       Q4 2020 
Cost Breakdown                                     This Request           Total Project 
Design and Management Oversight                             $0              $424,000 
Construction                                                     $0             $1,511,000 
Total                                                                   $0              $1,935,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  No action, do not perform any maintenance activities on the cap 
Cost Implications: $0 
Pros: 
(1)   No cost, ERL funds remain for other projects 
(2)   No impact to other projects associated with the Terminal 5 Dock Upgrade 
Cons: 
(1)   Noncompliance  with  EPA  Record  of  Decision  resulting  regulatory  jeopardy  and
potentially fines and/or penalties 
(2)   Risk of not properly containing the underlying contamination. 
This is not the recommended alternative. 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 6b                                  Page 3 of 4 
Meeting Date: February 11, 2020 
Alternative 2  Complete upper (2-in.) wear lift replacement in both the Intermodal Yard and
the BNSF Yard. 
Cost Implications: $11,340,000 
Pros: 
(1)    PSR cap would be fully replaced and would exceed EPA requirements 
(2)   This option would extend the life of the asphaltic cap 
Cons: 
(1)   Replacing the wear lift on the entire PSR site greatly exceeds what is required to
maintain the asphaltic cap 
(2)   The cost of this alternative exceeds the benefits of completely replacing the wear lift
given the results of the inspection. 
This is not the recommended alternative. 
Alternative 3  Clean and repair pavement cracks, localized wear lift replacement in areas of
pavement damage, and restoration of the surface seal coat 
Cost Implications: $1,935,000 
Pros: 
(1)   Appropriate use of budget 
(2)   The PSR superfund cap will be appropriately maintained and brought into compliance
with EPA requirements 
Cons: 
(1)   The PSR cap may need to be repaired sooner than if a full replacement is performed. 
(2)   The PSR cap maintenance is estimated to need additional repair in 5 years 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary               Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                          $0      $3,903,000      $3,903,000 
Current change                                         $0     -$2,041,000     -$2,041,000 
Revised estimate                                        $0      $1,862,000      $1,862,000 
Annual Budget Status and Source of Funds 
This project is included in the environmental remediation and liability program for which
funding is approved annually. This project has utilized funding approved in 2018 for design in
2019 and will utilize funding approved in 2019 for construction in 2020. 
This project is funded by the tax levy. 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 6b                                  Page 4 of 4 
Meeting Date: February 11, 2020 
Financial Analysis and Summary 
Project cost for analysis              1,935,000 
Business Unit (BU)                  Joint Venture 
Effect on business performance    NA 
(NOI after depreciation) 
NPV (if relevant)                     $8,366,000 
CPE Impact 
Discount rate of 6.1% 
Assumes cap repair in 5 years and replacement in 10 years and 45 years 
Future Revenues and Expenses (Total cost of ownership) 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS. 
November 19, 2019  The Commission authorized the (1) spending of environmental
remediation funds for 2020 in the amount of $28,730,000 and (2) a five-year spending
plan for $123,312,000 for the environmental remediation liability (ERL) program for
2020-2024. 
November 13, 2018   the Commission authorized the (1) spending  of environmental
remediation funds for 2019 in the amount of $17,025,000 and (2) a five-year spending
plan for $116,026,000 for the environmental remediation liability (ERL) program for
2019-2023. 








Template revised June 27, 2019 (Diversity in Contracting).

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