10c. Memo

Terminal 25 South Restoration Program

COMMISSION 
AGENDA MEMORANDUM                        Item No.          10c 
ACTION ITEM                            Date of Meeting      February 8, 2022 
DATE:     January 21, 2022 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Jon Sloan, Interim Director, Maritime Environment & Sustainability 
Kathleen Hurley, Senior Environmental Program Manager 
Kathy Bahnick, Senior Manager, Environmental Programs 
Joanna Florer, Senior Environmental Program Manager 
Tim Leonard, Capital Project Manager 
SUBJECT:  T25 South Restoration program EPA Order approval and Cleanup (106176) and
Habitat (105562) ERL projects design authorization 
Amount of this request:                                     $10,000,000 
Total estimated program cost:                              $75,000,000, 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to (1) execute an Administrative
Order on Consent (AOC) with the U.S. Environmental Protection Agency (EPA); and (2) authorize 
completion of design and permitting for the Terminal 25 South Restoration Program Cleanup 
(106176) and Habitat Restoration (105562) projects in the amount of $10,000,000 of a total
preliminary estimated Environmental Remediation Liability (ERL) program cost of $75,000,000. 
No funding is requested at this time to perform this work as it is included in the annual ERL
authorization and 5-year plan. 
EXECUTIVE SUMMARY 
Terminal 25 is located along the East Waterway. The northern two thirds of the property is an
active cargo facility, whereas the southern third of the property, known as T25 South, is an 
underutilized parcel that has primarily been used in recent years for bulk material storage,
viaduct demolition material storage, and drayage parking. The eastern half of T25 South is
licensed to the Northwest Seaport Alliance (NWSA), and the western half of the site, managed
by the Port of Seattle (Port), has been identified as a potential habitat restoration site in the
Port's proposed multi-site habitat mitigation bank program.   The habitat mitigation bank
program is a revenue-generating program that restores marginal properties for the purposes of
creating 'mitigation credits' that can be reserved, sold, or serve as a component of a future
settlement agreement to resolve claims related to Natural Resource Damages (NRD).


Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 10c                                  Page 2 of 7 
Meeting Date: February 8, 2022 
The Terminal 25 South Restoration Habitat project will create valuable off-channel habitat, which
will help bridge the gap in the habitat network between the mouth of the Duwamish Estuary and
the off-channel habitat upstream along this important fish migratory corridor. Importantly, the
project will restore off-channel estuarine habitat important for feeding, rearing, and refuge for
juvenile salmonids. The project site includes a combined total of approximately 9 acres of upland
and aquatic area along the shoreline of the East Waterway which will benefit from restored 
nearshore habitat consisting of riparian habitat, off-channel marsh, enhanced intertidal, and
shallow subtidal areas that will, in turn, improve adjacent existing deep subtidal habitat. 
In 2019 and 2020, the Port conducted preliminary investigations in the footprint of the habitat
area to determine if contamination was present. These investigations confirmed the presence of
contamination at the site. T herefore, as required by the attached AOC, a cleanup investigation
needs to be performed, with EPA's oversight, to refine the nature and extent of contamination
and ensure that the proposed habitat restoration meets EPA cleanup requirements for the East
Waterway Superfund site. 
Port staff is currently coordinating with the NWSA regarding Terminal 25 South site use 
adjustments and property agreements necessary to accommodate the proposed habitat and
stormwater treatment areas. The NWSA is also evaluating a separate potential Terminal 25 South
capital site improvements project to be completed in conjunction with the T25 South Restoration
program and thereby benefit from resultant combined design, permitting, and construction 
efficiencies. Additional information will be provided  regarding this project as its planning is
completed concurrently with the initial phases of the proposed cleanup and habitat projects'
design effort. 
Construction of the Port Cleanup and Habitat Restoration projects, as well as the NWSA's
potential T25 South site improvements project is currently planned to be completed via a General
Contractor/Construction  Manager (GC/CM) Heavy Civil alternative delivery method with
contractor involvement anticipated to start at a 30% design stage in 2024. Additional information
will be provided regarding this, as part of a future GC/CM contracting approval request, as the
T25 Restoration program design and construction scope are further developed. 
JUSTIFICATION 
As  keystone  projects  within  the  Port's proposed  multi-site  joint habitat  mitigation  and
conservation bank program, the Terminal 25 South Restoration cleanup and habitat projects may
serve to provide a service for industrial customers for whom the limiting factor for property
development is the identification of suitable mitigation opportunities. Similar to the Duwamish
River People's Park and Shoreline Habitat (formerly Terminal 117) as well as other Port habitat
restoration projects at Terminal 108 and other locations, this project will create a large offchannel
intertidal marsh and exposed unvegetated intertidal substrates (including mudflat,
sandflat, and cobble) surrounded by a riparian buffer. 

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

COMMISSION AGENDA  Action Item No. 10c                                  Page 3 of 7 
Meeting Date: February 8, 2022 
The Terminal 25 Restoration program also represents an opportunity to make progress toward
several of the Port's Century Agenda goals, primarily that of being the greenest and most energyefficient
port in North America; as well as watershed-based restoration priorities for the Green-
Duwamish watershed and the Duwamish Estuary sub-watershed; through the proposed 40-acre
habitat restoration. The Project may also serve as a component of a future settlement agreement
to resolve claims related to NRD. 
In conjunction with the habitat project, the site also requires cleanup with oversight from EPA.
The AOC is a binding agreement to perform work by the Port, therefore the signing of the EPA
Order requires Commission authorization. The signed AOC will formally initiate the process of
determining the nature and extent of contamination at Terminal 25 South and identify the
cleanup approach required. By cleaning up the site, the Port advances the long-term protection
of human health and the environment, reduces our environmental liability, and enables the
advancement of the habitat restoration. 
The design effort, including extensive permitting coordination, required for this program is
currently anticipated to require a minimum of five years to complete. Given this lengthy duration
and the critical need to comply with the newly issued EPA cleanup order, it is recommended that
this effort begin immediately.  As both the proposed T25 Restoration program cleanup and
habitat  projects  are  included  in  the  Environmental  Remediation  Liability  (ERL)  annual
authorization and 5-year plan, no funding is being requested at this time to perform this work.
Diversity and Contracting 
The design effort will utilize consultant services via environmental IDIQ contracts developed to
serve design and permitting efforts such as those required by this program. The Maritime
Environmental Site Management (Cleanup) IDIQ contract and Maritime Environmental Review
Permitting and Sustainability (Habitat Restoration) IDIQ contract have WMBE aspirational goals
of 15% and 23% respectively. 
Workforce Development 
The project team is coordinating with the workforce development team within the Office of
Equity, Diversity and Inclusion, as well as Economic Development, to support construction trades
opportunities in near-Port communities and the green economy in the areas surrounding the
Duwamish River. 
Stakeholder Communication and Outreach 
The project team is coordinating with Port External Relations staff to create and implement an
outreach plan for communications to appropriate community groups, stakeholders, and tenants 
throughout the course of the project. 


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

COMMISSION AGENDA  Action Item No. 10c                                  Page 4 of 7 
Meeting Date: February 8, 2022 
DETAILS 
Scope of Work 
The design scope to be performed under this authorization will include: 
Site investigations 
Sampling and data collection 
Coordination with EPA, Trustees, NWSA and other stakeholders 
Environmental, land use review and permitting 
Construction permitting 
Preparation of Cleanup and Habitat construction documents 
Preparation of cost estimates 
The proposed site improvements planned to be performed as a result of the projects' design
efforts consist of: 
Dredging and disposal of contaminated in-water sediment 
Removal and disposal of existing in-water/shoreline creosote treated timber piles and
marine structural remnants 
Excavation and disposal of upland contaminated soils 
Construction of riparian and inter-tidal habitat area including installation of native marsh
and riparian plantings 
Construction of stormwater treatment basin to serve adjacent upland areas including low
impact stormwater conveyance system 
Design Schedule 
Preliminary milestones: 
Commission Design Authorization               February 2022 
Execution of consultant service directives;        June 2022 
start of site cleanup investigation and design 
30% design completion                        Q4 2024 
Design & permitting complete                  Q1 2027 
Habitat construction complete                  Q4 2028 
Cost Breakdown                                     This Request           Total Project 
Design, cleanup investigation, and other                 $10,000,000            $10,000,000 
soft costs 
Construction                                                      $0            $62,000,000 
Post Construction Monitoring                                     $0             $3,000,000 
Total                                                        $10,000,000             $75,000,000 

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

COMMISSION AGENDA  Action Item No. 10c                                  Page 5 of 7 
Meeting Date: February 8, 2022 
Project costs have been estimated based on a conceptual design and will be refined as the design
is developed further. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do not proceed with the proposed T25 South Restoration program or enter into
the EPA Order. 
Cost Implications: Program cost savings. 
Pros: 
(1) Short-term budget cost savings. 
(2) No impact to existing T25 South site uses. 
Cons: 
(1) The Port's contamination liability at T25 South will remain unaddressed. 
(2) Could result in the U.S. Environmental Protection Agency taking enforcement action or
taking over performing the required site cleanup investigation. 
(3) Loss of Port opportunity and flexibility to define and direct the work; and to manage costs. 
(4) Loss  of  Port  opportunity  to  efficiently  combine  required  site  cleanup  with  site
improvements and future. 
(5) Would not comply with Port's obligations to remediate the site. 
(6) Not consistent with the current environmental values of the Port. 
(7) Would erode established trust between the Port and state and federal environmental
oversight agencies and tribes. 
This is not the recommended alternative. 
Alternative 2  Approve entering into EPA Order and proceed with T25 South cleanup, but do
not proceed with the proposed Habitat Restoration project. 
Cost Implications: Short-term program cost savings. 
Pros: 
(1)  Addresses the Port's contamination liability at T25 South. 
(2)   Short-term budget cost savings. 
(3)  Limited impact to existing T25 South site uses. 
Cons: 
(1) Loss of Port opportunity to achieve in potential efficiencies by combine required site
cleanup with habitat restoration and potential NWSA site improvements. 
(2) Not consistent with the current environmental values of the Port. 
(3) Would erode trust between the Port and Habitat  project stakeholders, regulatory 
agencies, and tribes. 

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

COMMISSION AGENDA  Action Item No. 10c                                  Page 6 of 7 
Meeting Date: February 8, 2022 

This is not the recommended alternative. 
Alternative 3 3  Approve entering into the EPA Order and proceed with proposed T25 South
Restoration program design and permitting effort. 
Cost Implications: Estimated $10,000,000 for design effort. 
Pros: 
(1)   Addresses the Port's contamination liability at T25 South. 
(2)   Provides  opportunity  to  efficiently  combine  required  site  cleanup   with  site
improvements and future uses. 
(3)   Provides Port ability to better manage design and construction schedules. 
(4)   Consistent with the Port's values of being responsible stewards of community resources
and the environment. 
(5)   Maintains established trust between the Port and state and federal environmental
oversight agencies and tribes. 
(6)   Minimizes long-term construction cost escalation. 
Cons: 
(1)   Uncertainty that mitigation obligation will be reached. 
(2)   Potential additional design costs due to uncertainty of the executed agreement. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 

Cost Estimate/Authorization Summary              Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                          $0     $34,000,000     $34,000,000 
AUTHORIZATION 
Previous authorizations                                   $0               $0               $0 
Current request for authorization                         $0     $10,000,000     $10,000,000 
Total authorizations, including this request                $0     $10,000,000     $10,000,000 
Remaining amount to be authorized                    $0    $65,000,000    $65,000,000 
Annual Budget Status and Source of Funds 
The project cost is included in the Annual ERL Authorization. 
The funds for this work come from the Tax Levy. The Port actively works on cost recovery i.e.
grants, insurance or payments from other 3rd parties to help support this work. 


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

COMMISSION AGENDA  Action Item No. 10c                                  Page 7 of 7 
Meeting Date: February 8, 2022 
Financial Analysis and Summary 
Project cost for analysis              $75,000,000 
Business Unit (BU)                  Maritime Environmental Services 
Effect on business performance     N/A. 
(NOI after depreciation) 
IRR/NPV (if relevant)                N/A 
CPE Impact                       N/A 
ATTACHMENTS TO THIS REQUEST 
(1) Administrative Order on Consent and Statement of Work 
(2) Presentation 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
November 9, 2021  Commission approved Annual ERL Authorization 
November 10, 2020  Commission approved Annual ERL Authorization 
November 5, 2019  Commission approved Annual ERL Authorization 











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

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