COMMISSION 
AGENDA MEMORANDUM                        Item No.           8a 
ACTION ITEM                             Date of Meeting   April 28, 2020________ 
DATE:     April 10, 2020 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Sandra Kilroy, Director, Maritime Environment & Sustainability 
Jon Sloan, Sr. Manager, Environmental Programs 
George Blomberg, Sr. Environmental Program Manager 
Ticson Mach, Capital Project Manager 
SUBJECT:  Terminal 117 Habitat Restoration and Duwamish Shoreline Access Project 

Amount of this request:                       $0 
Total estimated project cost:         $25,921,000 
ACTION REQUESTED 
Request Commission authorization to execute General Contractor/ Construction Management
(GC/CM) construction contract for the Terminal 117 Habitat Restoration and Duwamish
Shoreline Access Project, which includes fish and wildlife habitat restoration and public
shoreline access improvements. There is no funding requested; the total project cost will utilize 
previously approved Environmental Remediation Liability funding (tax levy) in addition to funds
from a 2008 insurance settlement. 
EXECUTIVE SUMMARY 
The Terminal 117 Habitat Restoration and Duwamish Shoreline Access Project includes multiple
coincident benefits: (1) restoration of 14 acres of critical estuarine fish and wildlife habitat; (2)
establishing an innovative mitigation bank1, for use in habitat credit transactions; and, (3)
providing important community public shoreline access and open space. Habitat restoration is
the principal project focus, contributing to the port's Century Agenda and Long-Range goals.
Establishing a 14-acre mitigation bank will generate marketable credits that can be reserved
and/or sold to liable parties for purposes of resolving natural resource damage liabilities in the
(1) Lower Duwamish Waterway, (2) Lockheed West, and (3) Harbor Island Superfund sites. The
project may also provide compensatory mitigation credits under Section 404 of the Clean Water
Act, as well as conservation offsets that can be used for compliance with the Endangered
1 A mitigation bank is a wetland, stream, or other aquatic resource area that has been restored for the purpose of providing compensation for
current or past impacts to natural resources under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA),
Clean Water Act (CWA), or Endangered Species Act (ESA). A mitigation bank is created through an approval process with regulatory agencies,
tribes, and natural resource stakeholders. 

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 8a                                   Page 2 of 9 
Meeting Date: April 28, 2020 
Species Act. Revenue generated by credit transactions in the Terminal 117 mitigation bank may
be re-invested in additional credit-generating habitat restoration projects needed to meet the
Century Agenda goal to create 40 additional acres of habitat in the Green-Duwamish
Watershed and Elliott Bay. The proposed project will also provide important shoreline public
access in the South Park neighborhood for use by surrounding communities, including a view
point pier, accessible pathways/trails, seating, environmental interpretation, and a hand-carry
boat launch. The public use elements of the project will also be a significant element of the 
Duwamish Valley Community Equity Agreement. Finally, the project satisfies requirements
associated with the TIGER grant which funded improvements at Terminal 46 and provides a
shoreline public access site required by the City of Seattle Shoreline Master Program.
PROJECT INFORMATION 
The present Terminal 117 project includes area initially proposed for restoration in 1998 and
subsequently included in the 2009 Lower Duwamish River Habitat Restoration Plan as two
linked restoration areas, identified as Sites 23 and 25. Collectively, the two sites comprise the
Terminal 117 Habitat Restoration and Duwamish Shoreline Access Project, with a combined
area of approximately 14 acres and approximately  mile of shoreline. 
The north portion of the project site (Site 23) was part of an "Early Action Cleanup" that was
completed in 2014 under the oversight of the Environmental Protection Agency. The cleanup
included removal of contaminated soil and sediments from approximately 3.3 acres of upland
property and 2.1 acres of aquatic area. The southern portion of the present project site (Site
25) is not part of the Early Action cleanup area. 
The project will convert degraded shoreline areas and marginal uplands to high-functioning
estuarine habitat critical to migratory juvenile and adult salmon, as well as other resident and
migratory fish and wildlife that use the Duwamish Waterway. The Terminal 117 project restores
14 acres of estuarine habitat, including sub-tidal aquatic area, inter-tidal sediment slopes, intertidal
marsh, and native riparian/forested buffer. Estuarine habitat, once abundant in the
Duwamish estuary, is now very rare. The project is strategically located in the estuarine
transition zone in the Duwamish Waterway, where out-migrating juvenile salmon acclimate
into saltwater environments further downstream. Their survival will be significantly improved
by the high-quality transition zone habitat provided by the project. 
The location and type of habitat included in the Terminal 117 project has been identified as a
limiting factor for salmon production in the Green-Duwamish Watershed by the Watershed
Resource Inventory Area #9 (WRIA-9) planning group. The site has also been identified by other
local, state, tribe and federal officials as a high priority habitat restoration area. The project
supports recovery of the endangered Southern Resident orca population in that it will increase
estuarine habitat critical to the life history and abundance of Chinook salmon. 


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

COMMISSION AGENDA  Action Item No. 8a                                   Page 3 of 9 
Meeting Date: April 28, 2020 
Additional project elements, including a viewpoint pier, walkways, elevated viewpoints, and
"hads-on" habitat area in the north portion of the restoration site, will contribute to public
awareness, understanding, and provide important community open space benefits. These 
public access improvements will strengthen public constituency and support for future actions
to restore and sustain critical habitat in the Lower Duwamish Waterway. The shoreline access
and public open space improvements included in the present project are the result of nearly
ten years of community involvement, including numerous collaborative design meetings with
South Park and Georgetown neighborhood advocacy groups and citizens. The project design for
the Terminal 117 project has been shaped by subject matter experts in both environmental
restoration and public use/open space design. Public use areas include elements designed by a
regionally acclaimed artist, Kristin Tollefson, who worked extensively with the community to
create site-specific environmental and community meaningful art interpretations. The public
access improvements will reflect carefully selected colors and themes, focusing on cultural
relevance. The public use and open space features will emphasize safe, accessible, durable
improvements, providing long-term community benefits. The project will be an important
addition to the Port's Duwamish Valley equity initiatives, providing a living classroom and
community gathering space for South Park and surrounding area residents. To support this
project, the Commission previously approved procurement of a General Contractor/ 
Construction Manager (GC/CM) Heavy Civil delivery method that provides for pre-construction
planning, and eventual construction (if approved by Commission) starting in June 2020. 
Scarsella Brothers was selected for the GC/CM contract from a pool of seven firms.
The project is also supported by an agreement between the Elliott Bay Natural Resource
Trustee Council (Trustees) and the Port of Seattle. The agreement memorializes a process by
which the Terminal 117 Habitat Restoration and Duwamish Shoreline Access Project will be 
awarded natural resource damage (NRD) credits that can be reserved or sold. These credits,
once realized, can be sold to other potential parties in the NRD action area that may require
credits for their NRD settlements. 
Staff has taken steps to also secure entitlements needed to allow the project to provide credits
for Clean Water Act and Endangered Species Act offsets. These steps include submittal of a
Mitigation Bank Prospectus to the U.S. Army Corps of Engineers and Washington State
Department of Ecology (2019) which is now under review.
At present, the project is fully designed and scheduled to start construction in the third quarter
of 2020. The Maximum Allowable Construction Cost (MACC) is not expected to exceed 
$12 million, which is within the engineer's construction cost estimate. Once completed, the
Port will be awarded its first allotment of NRD credits, as described in the agreement with the
Trustees, anticipated to occur before the end of the second quarter of 2021. Through sales of
credits over a ten-year period, staff expects that all project costs can be recovered. Recovered
costs are proposed to be reinvested in subsequent projects described in the Port's Mitigation
Bank Prospectus, if approved by Commission. 

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

COMMISSION AGENDA  Action Item No. 8a                                   Page 4 of 9 
Meeting Date: April 28, 2020 
Staff are working with the contractor to identify ways to leverage the project for community
benefit, including development of a long-term stewardship program that will employ Duwamish
Valley residents to participate in site maintenance and care. Similarly, the contractor will look
for opportunities to hire locally, to the extent possible. The contractor is also developing a plan
to integrate the project into area events such as Duwamish River Festival by making the
construction site and pieces of earth-moving equipment available for outreach and
interpretation. 
JUSTIFICATION 
The project, over ten years in the making, is justified in that it supports the Port's triple-bottom
line sustainability objectives: it achieves significant social, environmental, and financial goals. 
The Terminal 117 Habitat Restoration and Duwamish Shoreline Access Project will achieve
financial goals by supplying valuable credits to the NRD market. In addition to regulating
Superfund cleanups, CERCLA creates liability for damages to natural resources caused by
"releases of hazardous substances" into the environment. EPA administers the remediation of
Superfund sites but is not responsible to bring NRD claims. That task falls to the Trustees, a
group of federal, state and tribal government entities that have been designated management
responsibility for natural resources in the action area. Potentially responsible parties for
damages to natural resources generally settle out of court with the Trustees by: 
1)  Making a cash payment to the Trustees equivalent to the historic damages caused by
the responsible party. The payment must eventually be used for restoration actions in
the NRD action area.
2)  Self-performing restoration in the action area. Responsible parties that own or have
access to restoration sites in the action area can undertake a self-performed restoration
project to offset their historic damages. Or, 
3) Buying "credits" from a third-party mitigation bank in the action area, such as the
Terminal 117 project. 
The Port's proposed mitigation bank will generate credits that can be used for third-party NRD 
settlements. These credits have a substantial market value and will generate revenue for the
Port that will offset the costs of the project and can be applied to development of additional
mitigation bank sites. 
In addition to NRD settlements, the Terminal 117 Mitigation Bank could also generate credits
that can be available for other types of mitigation/offsets. The credits, once approved in the
Port's Mitigation Banking prospectus, will be available to help entitle maritime waterfront
developments in the Green-Duwamish watershed, satisfying compensatory mitigation needs
under both the Clean Water Act and Endangered Species Act. By generating these credits in
advance, the Port will be creating habitat at a critical time for the endangered Orca population,
while creating an asset that increases in value over time.

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

COMMISSION AGENDA  Action Item No. 8a                                   Page 5 of 9 
Meeting Date: April 28, 2020 
In 2009, the Commission adopted the Lower Duwamish River Habitat Restoration Plan
(LDRHRP). The purpose of the LDRHRP was to identify opportunities for habitat restoration that
are compatible with water-dependent and water-related uses in the Duwamish. The Terminal
117 project will implement restoration on Sites 23 and 25 in the LDRHRP. These sites were
previously reviewed and determined to be compatible with adjacent uses.
In 2012, the Port of Seattle Commission adopted the Century Agenda, which establishes a goal
to restore 40 additional acres of habitat in the Green-Duwamish Watershed and Elliott Bay.
The Terminal 117 project will achieve 35% of the Century Agenda goal. It will increase critically
important salmon habitat (particularly intertidal marsh) in the estuary by more than 40%.
Revenue generated from the project will be invested in other mitigation bank projects that will
make further progress towards the Century Agenda goal, while also helping achieve the
region's salmon and Orca recovery objectives. 
The project represents an important open space and shoreline access park for use by South
Park and adjacent neighborhoods. The site will also provide educational and stewardship
opportunities for all area residents, particularly youth. 
Other justifications for promoting construction of the project include: 
(1) Compliance with Terminal 46 TIGER grant. The Port's grant applications to United States 
Maritime Administration (MARAD) highlighted social equity improvements at Terminal 117 as
an important component of the application; specifically, it included that we would construct
the Terminal 117 public shoreline access pier by June 2021. This deadline can only be met if we
start construction this year. 
(2) Cost associated with EPA-required removal of a temporary steel sheet-pile wall in the
Terminal 117 early action cleanup area. Following cleanup, the Port negotiated with EPA to
retain the temporary sheet piling wall for construction of the habitat site. EPA allowed for
retention of the temporary structure on the condition that it be removed immediately following
the Terminal 117 habitat restoration action, which we believed at the time would occur
immediately following the cleanup. EPA has indicated that the wall should be removed this
year; and, 
(3) Compliance with public access requirements associated with the Terminal 46 operating
license (City of Seattle Master Use Permit). The Terminal 46 Apron Strengthening and Electrical
Upgrade that occurred in 2001 identified the Terminal 86 Fishing Pier as the required City of
Seattle required shoreline public access site. With the closure of the Terminal 86 Fishing Pier in
2013, the Port then identified the future Terminal 117 viewpoint pier as the required public
access site. If the Terminal 117 viewpoint pier is not constructed, the Port risks being out of
compliance with the Terminal 46 operating permit.


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

COMMISSION AGENDA  Action Item No. 8a                                   Page 6 of 9 
Meeting Date: April 28, 2020 
Diversity in Contracting 
The Disadvantaged Business Enterprise (DBE) contracting goal for the Terminal 117 Habitat
Restoration and Duwamish Shoreline Access Project is 6%. The Port's Contractor is committed
to local DBE subcontractors, as well as exploring work force opportunities and local-hiring from
the South Park neighborhood to the extent feasible. The contractor will also participate with
Port staff in community outreach events, including the Duwamish River Festival and "Duwamish
Alive!" event. 
Scope of Work 
The Terminal 117 Habitat Restoration and Duwamish Shoreline Access Project consists of the
following: 
(1)   Excavation of approximately 35,000 CY of fill and native soils to create an off-channel
tidal basin and shallow out existing steep bank line slopes; 
(2)   Installation of natural shoreline stabilization structures using anchored large wood,
soil lifts, and native vegetation; 
(3)   Construction of upland rockery walls, rock steps, and passive in-water scour
protection features; 
(4)   Construction of approximately 185 ft long steel-framed pile-supported viewpoint pier; 
(5)   Installation of individual piling for use in improving Treaty fishing access; 
(6)   Installation of interpretive information, in coordination with and approved by Treaty
tribes, to increase awareness of Puget Sound tribes and understanding of Treatyreserved
fishing access; 
(7)   Refurbishment and installation of two Port-provided steel pedestrian bridge trusses
and elevated steel platform viewpoint structures; 
(8)   Construction of crushed rock trails, concrete sidewalks, and pervious pavers; 
(9)   Planting of approximately 5 acres of riparian and marsh vegetation; 
(10)  Construction of above- and below-ground irrigation system; 
(11)  Construction of temporary features to protect estuarine vegetation from waterfowl
grazing and to exclude invasive species; 
(12)  Installation of solar-powered paths and pier lighting; 
(13)  Installation of site-specific environmental interpretive signage and public art features; 
(14)  Installation of bike racks and seating for public use; 
(15)  Installation, maintenance, and management of temporary erosion control measures,
construction stormwater management measures, and dewatering system; and, 
(16)  Management of traffic control measures, including coordination with traffic control of
neighboring coincident construction projects. 
Schedule 
Activity 
Commission design authorization               2011 
Design start                                       2011 

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

COMMISSION AGENDA  Action Item No. 8a                                   Page 7 of 9 
Meeting Date: April 28, 2020 
Design pause during "Early Action" CERCLA      2012-2015 
Cleanup and NRD negotiations 
Design re-initiated                                 2016 
Commission GC/CM Procurement             2019 
authorization 
Authorization request to execute construction   2020 Q2 
Construction start                                2020 Q3 
In-use date                                       2021 Q2 
Cost Breakdown                            This Request            Total Project 
Design                                                           $0             $3,496,000 
Construction and operation2                                      $0            $22,425,000 
Total                                                                   $0             $25,921,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do not proceed with construction until buyers for mitigation credits have been
secured. 
Cost Implications: This would add substantial costs to the Port, and risk non-compliance with
regulatory requirements. (1) Potential that we would need to return approximately $11 million
of federal grant funding due to lack of performance criteria, (2) estimated cost of $300,000 for
removal of temporary steel sheet-piling wall remaining from early action clean-up, (3)
estimated yearly $750,000 to $1 million construction cost escalation; (4) failure to achieve
Duwamish Valley Community Equity program expectations. 
Pros: 
(1)   Project costs would be available for investment in other Port projects; 
(2)   Having a buyer for mitigation credits in advance ensures that project financing is
secured. 
Cons: 
(1)   Project costs may escalate due to construction price increases in future years; 
(2)   Removal of steel sheet-piling wall installed during EPA-directed clean-up may be
necessary; 
(3)   May not complete public access pier in time to meet TIGER grant deadline, affecting
previously received federal grant funding for numerous projects; 
(4)   Terminal 46 public access requirement may no longer meet City of Seattle land use
requirements. 
This is not the recommended alternative. 

2 Includes consideration of administrative costs, construction, design contingency, adaptive management, site maintenance, performance
monitoring, and initial maintenance. 

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



COMMISSION AGENDA  Action Item No. 8a                                   Page 8 of 9 
Meeting Date: April 28, 2020 
Alternative 2  Pending final approval of the design and maintenance plan from the Trustees,
begin implementation of the Terminal 117 Habitat Restoration and Duwamish Shoreline Access
Project and market/transact credits as they are released over time. 
Cost Implications: $24,331,800 total estimated project cost. 
Pros: 
(1)   Start construction Q3 2020, taking advantage of 2020 in-water construction season; 
(2)   Cost saving in utilizing existing temporary steel sheet-pile wall as a beneficial element
of the restoration project; 
(3)   Stay on schedule to complete public access pier in time to meet TIGER grant deadline; 
(4)   Support Port century agenda of creating 40 additional acres of habitat in the
Duwamish watershed. 
Cons: 
(1)   Utilize Port funding source for other projects; 
(2)   Uncertainty with respect to restoration credit sales. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary        Capital         Expense        Total 
COST ESTIMATE 
Original estimate                                $22,425,000      $3,496,000     $25,921,000 
AUTHORIZATION 
Previous authorizations                         $15,374,000      $3,496,000      $3,496,000 
Current request for authorization                         $0               $0               $0 
Total authorizations, including this request3     $15,374,000      $3,496,000     $18,870,000 
Remaining amount to be authorized            $7,051,000             $0     $7,051,000 
The funding sources will be the from the Tax levy and from a previous settlement agreement in
2008 that stipulates the funds to be used for habitat restoration at the Terminal 117 site. The
current value of the settlement fund is approximately $11,781,789.
Future Revenues and Expenses 
Future revenues from the sale of credits generated by this project will be negotiated in future
years, but it is anticipated that future credit sales may equal or exceed the cost of the project. 


3 Includes consideration of administrative costs, construction, design contingency, adaptive management, site maintenance, performance
monitoring, and initial maintenance. 

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

COMMISSION AGENDA  Action Item No. 8a                                   Page 9 of 9 
Meeting Date: April 28, 2020 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
(2)   Project flyer 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
July 25, 2006  the Commission received public testimony regarding future uses for
Terminal 117 
May 13, 2008  the Commission approved entering into a memorandum of agreement 
(MOA) with the Trustees for crediting habitat restoration projects in and near the Lower
Duwamish Waterway relating to future settlement of NRD claims; for execution of a
professional services agreement for environmental review and application of permit
authorizations; and to prepare plans and specifications for design and permitting of a
fish and wildlife habitat restoration project at Terminal 117 under the MOA, for a total
authorized expenditure of $210,000 
October 27, 2008  the Commission approved entering into a settlement agreement
regarding the Terminal 117 Site and Lower Duwamish Site cleanup costs and NRD
liability 
July 7, 2009  the Commission adopted the Lower Duwamish River Habitat Restoration Plan,
an inventory of Port of Seattle properties eligible for habitat restoration 
June 7, 2011  the Commission approved 1) permitting and design of an expanded fish and
wildlife habitat restoration project at Terminal 117 for an estimated cost of
approximately $3,021,000; and 2) execution of a contract for outside professional
services to complete the permitting and design of the habitat restoration project at
Terminal 117 
March 26, 2013  the Commission approved (1) purchase of the southern portion of the
South Park Marina float structure to accommodate habitat restoration at Terminal 117 
and (2) completing permitting and design for a public access viewpoint pier at Terminal
117 
July 23, 2019  the Commission authorized advertising and executing a contract with a
General Contractor/Construction Manager (GC/CM) "Heavy Civil," to assist with
completion of design and permitting work associated with the Terminal 117 Habitat
Restoration and Duwamish Shoreline Access Project (the "Project") 





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