PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       6a 
ACTION ITEM             Date of Meeting  November 06, 2012 

DATE:    October 29, 2012 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Kathy Bahnick, Manager, Remediation Programs 
Roy Kuroiwa, Senior Environmental Program Manager 
Ticson Mach, Construction Capital Project Manager 
SUBJECT:  Request to: Advertise and Execute a Major Construction Contr act, and Execute a 
Contract - Consultant Support for Terminal 117 Cleanup 
Amount of This Request:  $0            Total of Contracts, This Request: $18,200,000 
Source of Funds: Environmental Remediation 
Liability Non Ops (Tax Levy)   Est. State and Local Taxes: $1,600,000 
Est. Jobs Created: 191 
ACTION REQUESTED: 
Request Commission authorization for the Chief Executive Officer to 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 (EAA) cleanup site required under an
Administrative Settlement Agreement and Order on Consent (ASAOC) that the Port entered into on 
June 8, 2011.
SYNOPSIS: 
The Port's Terminal 117 cleanup site (T-117) is an Early Action Area (EAA) within the larger Lower
Duwamish Waterway Superfund project. The Port previously cleaned up parts of the site in 1999 and
2006. This authorization continues the Port's plan to clean up the entire T-117 site, consistent with
the Administrative Settlement Agreement and Order on Consent that the Port entered into with the
U.S. Environmental Protection Agency (EPA) on June 8, 2011 (the "2011 Order").
The removal actions covered under the requested construction and consultant contracts are currently
scheduled to occur from June 2013 to June 2014, with long-term monitoring occurring for several
years later. The City of Seattle (the City) will be contributing to the cost of the T117 EAA cleanup, in
addition to Department of Ecology grant funding under the Model Toxics Control Act. Funding for
these contracts was previously authorized on December 6, 2011, as part of the $56,500,000
Environmental Remediation Liability Program.



COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 2 of 6 
BACKGROUND: 
The Port, King County, the City, and the Boeing Company are participating in the 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 has 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 the LDW sedimentsand
adjoining bank and upland area in the vicinity of the Port property at T-117. 
Contamination in the T-117 area is primarily from polychlorinated biphenyls (PCBs), which were
used widely for decades, including for transformers and other electric equipment, before their
manufacture and use was banned in the United States in 1978. An asphalt shingle plant operated on
this property by Malarkey Asphalt Company and its predecessors for many decades and, for a period
of time in the 1970s, that facility used waste transformer oil obtained from Seattle City Light as fuel,
which was likely tainted with PCBs. Asphalt plant mishandling of waste transformer oil is the most
likely source for the majority of the PCB contamination in the vicinity of 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 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 EAA (the "2005 Order"). The Agreement require d the Port
and the City to prepare the site's cleanup alternatives report, also known as the Engineering
Evaluation/Cost analysis (EE/CA). 
During the investigation of the bank area, additional areas of contamination above action levels were
discovered on T-117 uplands that required immediate action. In June 2006, the Port 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 (SOW) which was approved by EPA in September 2007, and which
replaced the SOW for the 2005 Order. 
In July 2008, the Port entered into a Settlement, Indemnity and Release Agreement ("the T117
Settlement Agreement") with the City of Seattle, the Malarkey Asphalt Company and other parties.
Under this Agreement, the Port received over $10 million from Malarkey's insurance companies and 
the City agreed to pay 40% of the future sediment and upland remediation costs to be incurred at
T117. 
A final revised EE/CA was formally approved by EPA in an Action Memorandum dated September
30, 2010. In the Action Memo, EPA selected Cleanup Alternative 2: Upland and Sediment Removal
and Backfilling (no capping.) Alternative 2 provides a full soil and sediment cleanup approach that
requires no significant long-term monitoring or administrative controls, and which will allow a full
range of future site uses, including industrial/commercial operations, public access and habitat




COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 3 of 6 
restoration.  At its May 24, 2011,  meeting, the Commission authorized entering into a new
Administrative Settlement Agreement and Order on Consent (the 2011 Order) for the design, cleanup
implementation, and O&M of Cleanup Alternative 2. The design of the cleanup is complete and has
been approved by the EPA. The next step is to begin implementation of the cleanup. 
PROJECT JUSTIFICATION: 
The overall goal of the T-117 cleanup is to significantly reduce or eliminate the exposure of
ecological and human receptors to sediment and soil contamination and thereby reduce or eliminate
adverse effects on resources in the project site. Subsequently, the cleanup will allow a full range of
future site uses, including industrial/commercial operations, public access and habitat restoration. 
Further, the Port is required to complete cleanup of T-117 in accordance with EPA's 2011 Order to
perform design and implementation of the selected removal action/cleanup as presented in the Final
EE/CA and EPA's Action Memorandum (September 30, 2010). 
Project Objectives: 
Perform the required cleanup construction and operation and maintenance activities required
by EPA's 2011 Order. 
Perform the work in accordance with EPA's Statement of Work and Schedule (i.e.,
attachments to the 2011 Order). 
Manage and perform the work in accordance with local, state, and federal cleanup laws and
regulations, with project controls and contract systems in place. 
Maximize cost recovery opportunities. 
Identify and consider community values and concerns, as part of a formal Community
Involvement Plan. 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
The scope includes advertisement and execution of the construction contract. Environmental services
during construction and post construction include the following: 
Construction Observation 
Permitting Support 
Cleanup Compliance Monitoring, such as soil and sediment sampling 
Health and Safety Monitoring 
Community Outreach and Communication 
First Year Operations and Monitoring 
Management, Controls, and Administration Support of field services 
Documentation and Reporting 
Schedule: 
The contracting process for T-117 construction (cleanup) and project support is expected to be
concluded in May 2013 just prior to initiation of the construction phase of the cleanup work, which is
anticipated for June 2013. The schedule for the construction activities is expected to run from May
2013 to April 2014.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 4 of 6 
The consultant work pertaining to this authorization (T-117 Environmental Compliance support) is
intended to begin around May 1, 2013, and continue until approximately June 1, 2015, after completion
of the cleanup work, plus an additional one year of operations and maintenance. 
The Port will secure long-term monitoring services under a separate future procurement. 
FINANCIAL IMPLICATIONS: 
There is no funding request as part of this authorization. The funding required for these contracts was
previously included in the 2012 Plan of Finance and included as part of the 2012 Environmental
Remediation Liability Annual Authorization. 
Budget Status and Source of Funds: 
The costs are eligible for state grant recovery when it is available. The City of Seattle will be paying
40% of the costs as agreed under the T-117 Settlement Agreement. 
Any additional environmental remediation liability will be booked as the project moves forward and
will be reported annually to the Commission via routine environmental liability reports and spending
authorization requests. The source of funds will be the tax levy.
STRATEGIC OBJECTIVES: 
This project will achieve the strategic objective of accomplishing cleanup of the Port's property,
while assuring that other responsible parties are paying their fair share. 
ENVIRONMENTAL SUSTAINABILITY: 
Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 
EPA reviews cleanup projects to ensure that they meet the substantive requirements of federal and
state laws and regulations that are applicable or relevant and appropriate. 
The project is located adjacent to the City of Seattle neighborhood of South Park, recognized as a
socially diverse and economically disadvantaged neighborhood with significant environmental justice
concerns. The T-117 site is located adjacent to single and multi-family residences. Cleanup planning
and design efforts are considering and incorporating opportunities for materials reuse, recycling,
and/or reduction. Finally, cleanup implementation will include significant environmental controls
and performance monitoring to ensure public health and safety. 
BUSINESS PLAN OBJECTIVES: 
As a signatory on the Order, the Port is legally obligated to do this work as directed by the EPA. The
Port continues to carefully control costs associated with the effort to minimize overall economic
impact. 
TRIPLE BOTTOM LINE SUMMARY: 
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 siteremediation is the
hallmark of responsible environmental stewardship. Cleanup also returns contaminated land to a more
productive use and provides an opportunity for future possible habitat restoration.


COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 5 of 6 

ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1: Perform in-house services related to environmental construction support and services
associated with the T-117 cleanup. The Port does not have sufficient construction support and field
services to provide this level of effort required to carry out an EPA CERCLA cleanup project. Do not
proceed with advertisement of the construction contract. The Port will not be in compliance with the
terms of the Administration Settlement Agreement and Order on Consent. 
Alternative 2:  Execute a contract for construction contract and services for environmental
construction support. This is the recommended alternative. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
2011 EPA Administrative Settlement Agreement and Order on Consent (2011 Order) 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
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. 
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. 
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. 
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 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. 
November 30, 2009  The Commission approved the authorization to perform pollution
remediation activities relating to environmental reserve funds in 2010. 
May 24, 2010  The Commission approved execution of Administrative Settlement Agreement
and Order on Consent for Removal Design/Removal Action at the T-117 Early Action Area.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
October 29, 2012 
Page 6 of 6 
June 1, 2010  The Commission authorized Chief Executive Officer to execute a CategoryIII 
professional services contract to provide consultant services and support for planning and predesign
; design services, construction and monitoring support, and post-construction monitoring
for the 2011 Order. 
May 24, 2011   The  Commission authorized Chief Executive Officer to execute an
Administrative Settlement Agreement and Order on Consent for the Removal Action
Implementation at Terminal 117, an Early Actioon Area for the Lower Duwamish Waterway
Superfund. 
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.