6b

PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6b 
ACTION ITEM 
Date of Meeting    October 13, 2015 
DATE:    August 10, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Kathy Bahnick, Seaport Environmental Program 
SUBJECT:  Service Agreement for Terminal 91 Cleanup Long Term Environmental Operations
and Compliance Monitoring 
Value of this contract:         $730,000      Source of Funds:          Tax Levy 
(Environmental
Remediation Liability
[ERL] Non Ops) 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to execute a contract for longterm
environmental operations and monitoring at Terminal 91, as required under Agreed Order No.
DE 8938 entered into with the Department of Ecology and dated April 10, 2012. The contract
amount is estimated at $730,000 with estimated contract duration of up to 5 years. No funding is
associated with this request. 
SYNOPSIS 
Terminal 91 (T-91) is located in an industrial area in the Interbay neighborhood of Seattle. The
two piers at Terminal 91were built by the Port soon after its establishment in 1911. Various oil
companies and other businesses operated on the T-91 site from 1926 until 1941, when the U.S.
Navy took possession and consolidated multiple parcels into T-91 as it exists today. The Port
acquired the facility back from the Navy in the 1970s. The former tank farm located at T-91 was
leased to Philip Services Corporation and its predecessors for use as a dangerous waste treatment
and storage facility under a Resource Conservation and Recovery Act (RCRA) permit from that
time until 1995. The tank farm was also operated by various marine fuel marketing companies
until 2003. The above-ground portion of the tank farm was demolished by the Port in 2005.
Releases associated with the tank farm operations resulted in contaminated soils and groundwater
at T-91. Since 1998, the Port has been working with the Department of Ecology (Ecology) on the
investigation, assessment and development of corrective/cleanup actions to address the problems.
On April 10, 2012, Ecology and the Port entered into an Agreed Order (No. DE 8938) which
obligated the Port to implement a final Cleanup Action Plan (CAP) that included performance of
certain cleanup actions, completion of compliance monitoring (through 2044), and the requirement
to continue to investigate and manage any additional contamination at the T-91 facility, including
any newly identified contamination discovered during implementation of the CAP. The cleanup
identified in the CAP (excluding the long term compliance monitoring and maintenance of the

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
August 10, 2015 
Page 2 of 6 
remediation systems) was performed from 2012 through early 2015. The site is now available to
accommodate a range of future uses compatible with current industrial zoning. 
This request is only for contracting authorization; funding will be authorized by the Commission
under the Environmental Remediation Liability (ERL) annual authorization. 
BACKGROUND 
The T-91 site is regulated under both a Resource Conservation and Recovery Act (RCRA) permit
and a Model Toxics Control Act (MTCA) Agreed Order. The RCRA permit remains in place
because a portion of the site (the tank farm) was formerly permitted to operate as an RCRA-
regulated dangerous waste treatment and storage facility. Both the former RCRA facility and the
surrounding piers and terminal are now being cleaned up under the MTCA program. The Port, as
the property owner, is required to hold the RCRA permit until cleanup ("corrective action") is
completed. The permit imposes corrective action by incorporating a separate agreed order issued
under MTCA. 
The Port of Seattle entered into the first MTCA agreed order for this site in 1998 (the "1998
Agreed Order"). Philips Services Corporation (PSC) and Pacific Northern Oil Corporation (PNO),
as former operators of the tank farm, also signed the 1998 Agreed Order. Both PSC and PNO
subsequently went out of business, leaving the Port as the sole responsible party on the 1998
Agreed Order. Under  the 1998 Agreed Order, the Port was required to prepare a Remedial
Investigation (RI) and Feasibility Study (FS), and to develop a CAP.
The 1998 Agreed Order was replaced by a new agreed order in 2010. The 2010 Agreed Order 
continued the requirement to complete the FS and develop the draft CAP. It also extended the
geographic definition of the site beyond the tank farm to encompass the entire Terminal 91
property owned by the Port (including submerged lands). Ecology required this change to satisfy a
RCRA permit requirement that corrective action must include all contiguous property under the
permit-holder's ownership.
Environmental investigations at the T-91 site have been ongoing since the early 1980s and
continue to the present time. The primary area of contamination at the site is the tank farm and
associated operations. Chemicals of concern found in groundwater and soils near the tank farm
site include total petroleum hydrocarbons (including floating product on the groundwater), volatile
organic compounds, semi-volatile organic compounds, polychlorinated biphenyls, and metals. The
cleanup activities are designed to address direct contact with site soil, indoor air quality due to
vapor intrusion, and impact to aquatic receptors, i.e., fish or invertebrates. 
The Ecology-selected cleanup approach was identified in the December 15, 2010, final CAP. The
CAP-required work consisted of measures designed to prevent migration of contaminants to Elliott
Bay and to prevent direct contact with contaminants. These measures included installation of a
containment barrier wall at the tank farm, installation of product recovery trenches, installation of
an asphalt cover to the tank farm area, and removal of subsurface structures. The CAP also
included excavation to address contamination from a historic pipeline release on Pier 91, and

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
August 10, 2015 
Page 3 of 6 
decommissioning of old fuel pipelines. In addition, long-term operation and monitoring of the
installed systems and compliance monitoring are included.
On April 10, 2012, the Port and Ecology entered into an Agreed Order, under which the Port
agreed to implement the work identified in the CAP. The 2012 Agreed Order also requires
investigation and cleanup of discrete units in the upland area not included in the final CAP, and
placement of a restrictive covenant on the property. The restrictive covenant will limit exposure to
hazardous substances by regulating land uses on the property and providing notice to future users
as to the presence of hazardous substances. The restrictive covenant will include notification
requirements, will restrict groundwater usage, and require future land use to be consistent with
current land use. The 2012 Agreed Order defers action on marine sediments in the vicinity of T-91
to a later date. 
With the implementation of the cleanup work complete, the project is ready to move into the longterm
operation and monitoring of the remediation systems and compliance monitoring phase.
PROJECT JUSTIFICATION AND DETAILS 
The Port is required to maintain and monitor the cleanup/implementation of the selected cleanup 
action of 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, groundwater, and sediment, thereby significantly reducing or eliminating adverse
effects on resources in the project site.
The cleanup has restored the site to a range of future site uses compatible with current industrial
zoning and the remaining required work is to maintain the remedial structures (cover, product
recovery system and containment wall); to monitor the systems to verify they continue to perform
as anticipated; reporting and record keeping and investigation of any newly discovered
contamination. 
Project Objectives 
Perform the required operation and maintenance activities required by the 2012 Agreed
Order. 
Perform project management activities required under the Order such as record keeping,
reporting and investigations of newly discovered contamination. 
Manage and perform the work in accordance with local, state, and federal cleanup laws and
regulations, with project controls and contract systems in place. 
Deliver project in a quality, cost efficient manner and within schedule as approved by
Ecology. 
Maximize cost recovery opportunities. 
Identify and consider community values and concerns

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
August 10, 2015 
Page 4 of 6 

Scope of Work 
The contracted firm will perform services necessary to fulfill and implement the remaining
requirements of the Agreed Order. These would include: 
Project management, administrative and reporting support 
O&M tasks such as cutoff wall inspections, cover inspection and water/Light Non-Aqueous
Phase Liquid monitoring 
Compliance monitoring 
Investigation of newly discovered contamination and Agreed Order compliance construction
and technical support 
Schedule 
It is estimated that the contract will be executed by Q2 2016 in order to have a transition period
between this contract and the current one. The contract duration is up to 5 years for the operation
and monitoring tasks but the contract may be extended to support Ecology's five-year review of
the O&M tasks performed by the selected consultant if Ecology's review takes longer than
expected. 
FINANCIAL IMPLICATIONS 
There is no funding request as part of this authorization since the budget for this requested action
will be authorized in the annual ERL program authorization requests. All costs will be accounted
for as environmental remediation liabilities and charged to expense in accordance with Port Policy
AC-9. The tax levy is the funding source. 
Budget Status and Source of Funds 
There is no funding request associated with this authorization. Individual service directives will be
executed to authorize the consultant to perform any specific work on the contract against approved
ERL annual authorizations and within the total contract amount. 
The costs for O&M and compliance monitoring, were included in the Commission's 2015 
Environmental Remediation Liability (ERL) spending authorization and five-year plan, approved
on December 9, 2014.  The ERL cost estimates were also included in the 2015 plan of finance.
Additional costs may be incurred if continuing investigations identify any new areas requiring
cleanup. Any additional cleanup costs that may be required as the project moves forward will be
recorded as a liability and a non-operating expense in accordance with Port Policy AC-9,
Environmental Remediation Liability. These amounts will be reported annually to the
Commission via routine environmental remediation liability reports and spending authorization
requests. 
The Port's tax levy will pay the costs for the environmental cleanup project that are not ultimately
covered by cost sharing agreements, settlements, insurance, or other cost recovery sources. In
addition, Port staff is pursuing additional grant funding from Ecology.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
August 10, 2015 
Page 5 of 6 
STRATEGIES AND OBJECTIVES 
In support of the Century Agenda strategy to be the greenest port in North America, this project
will maintain environmental cleanup of the Port's property, while assuring that other responsible
parties are paying their fair share. 
TRIPLE BOTTOM LINE 
State and federal laws require elimination of unacceptable levels of environmental risk caused by
the presence of contaminants in soil, groundwater, and sediment.  From the perspective of the
surrounding communities and the customers that we serve, the Port's participation in site
remediation is the hallmark of responsible environmental stewardship. Cleanup also returns
contaminated land to a more productive use.  In accordance with the Office of Social
Responsibility (OSR) recommendations, small business participation will be considered in the
evaluation criteria. This goal will likely be met through teaming arrangements. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  All long-term environmental operations and compliance monitoring completed by
Port staff. Estimated cost is $219,000 per year for 5 years. 
Pros 
Additional hired employees would provide flexible work force. 
Increases Port staff technical development 
Cons 
Requires additional Port staff 
Requires purchase of substantial amount of sampling equipment 
Would still require some contracting for tasks staff would not be able to perform such as
laboratory analysis 
Relying on in-house staff would likely result in the work not being conducted according to
the schedule required by the regulatory agency, with a risk of enforcement action.
Alternative 2)  All long-term environmental operations and compliance monitoring completed
using a project-specific contract. Estimated cost is $146,000 per year for 5 years. 
Pros 
This will provide for a competitive procurement process and encourage small business
participation 
Provides continuity in services and consistent knowledge of regulatory requirements from
the Agreed Order. 
Provides full service support and expertise 
Provides staff with the tools to respond in a timely manner to new requests from Ecology. 
Cons 
Reduces technical development opportunities for Port staff 
This is the recommended alternative.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
August 10, 2015 
Page 6 of 6 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
August 6, 2013 - Commission authorized the Chief Executive Officer to execute a major
construction contract, and to self-perform using Port crews to implement the cleanup
action at T91 as required under Agreed Order No. DE 8938 entered into with the
Washington State Department of Ecology and dated April 10, 2013. 
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.

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