8h. Memo
Settlement Agreement Highline Water District
COMMISSION AGENDA MEMORANDUM Item No. ACTION ITEM Date of Meeting 8h September 10, 2024 DATE: August 19, 2024 TO: Stephen P. Metruck, Executive Director FROM: Elizabeth Black, Deputy General Counsel Sarah Cox, Director of Aviation Environmental and Sustainability SUBJECT: Authorization to Execute Settlement Agreement with Highline Water District Amount of this request: $6,765,000 ACTION REQUESTED Request Commission authorization for the Executive Director to execute a settlement agreement with Highline Water District (HWD), paying $6.765 million in exchange for HWD's decommissioning of its Tyee Well, which is located on Port of Seattle property. EXECUTIVE SUMMARY The Tyee Well is located on Port property at the southern end of Seattle-Tacoma International Airport ("SEA") near the former Tyee Golf Course. In 2022, through routine testing HWD identified a contaminant compound known as PFNA in concentrations above the Washington State Department of Health State Action Level. No exceedances were identified in any of HWD's other wells. In response to the exceedance at the Tyee Well, HWD ceased drawing water from the Tyee Well, purchased supplemental water from Seattle Public Utilities to replace the supply form the Tyee Well, and requested compensation from the Port on the assertion that SEA was a potential source of the PFNA. HWD did not identify any injury to human health as a result of the exceedance, and all potentially impacted customers were promptly notified of the exceedance. The Tyee Well was HWD's least producing water source contributing approximately 4.5% of HWD's annual water production in a very limited geographic area near the Well. It was insufficient to meet overall water demand and its water was blended with water purchases from Seattle Public Utilities as well as other Districtoperated wells and treatment plants. Under the proposed agreement, the Port will compensate HWD $6.765 million based on the assumed remaining 22-year useful life of the Tyee Well. In exchange, HWD will agree to decommission the Tyee Well and release its potential claims against the Port. This matter was further discussed in privileged attorney-client communications. There are no attachments to this memo. Template revised January 10, 2019.
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