Port of Tacoma Semi-Annual Project Progress Report

Transcription

1 Port of Tacoma Semi-Annual Project Progress Report

2 Port of Tacoma Leadership Port of Tacoma Commission Connie Bacon Second Assistant Secretary John Wolfe Chief Executive Officer Don Johnson First Assistant Secretary Dick Marzano President Don Meyer Vice President Clare Petrich Secretary

3 Semi-Annual Project Progress Report Introduction Created by Pierce County citizens in 1918, the Port of Tacoma is a powerful economic engine in Pierce County and throughout the State of Washington, creating significant private investment and family-wage jobs within the region. Port activities account for more than 29,000 jobs and contribute more than $223 million each year in state and local taxes that support schools, roads, police, and fire protection. The intent of this report is to provide Port Commission with high level information on the status of Port s projects. About the Report The report will provide general information on the project description, status, significant developments, schedule, cost, and risks. The Port implements a number of different types of projects and not all information may be relevant to a specific report; as such, the reports may vary in detail and content. The report includes the project name, project number, authorized amount, project phase, current estimate at completion, cost to date, and schedule completion date. The report also includes information on status related to scope, schedule, and budget. : of spending, agreements, administrative actions, real property actions, and other items as outlined by the Master Policy by the Commission or Chief Executive Officer or the CEO s delegate. s are frequently phased parallel to specific project stages. For example, the CEO may authorize preliminary work for assessing the opportunity and conceptual design. Port Commission would typically authorize work, in a phased or staged approach, for design and then construction. Current Estimate: The current estimate represents the expected cost of the project at the time the quarterly report is prepared and submitted. It represents the total estimated cost anticipated for completion of the project. Cost to Date: The cost to date are actual costs that are recorded in the accounting system as project costs. Cost to date represents a specific date, typically the last day of the reporting quarter. Significant Developments: Covers items such as accomplishments, significant events or milestones, contract advertisements and awards, upcoming activities, environmental issues, and scope changes. 1

4 Port of Tacoma Semi-Annual Project Progress Report Includes information on the project schedule, including variances since the last report such as contract extensions and information on critical dates. Project Cost: Addresses the total estimated cost of the project and includes information on the overall project cost status, recent Commission authorizations, and any variances such as forecasted overruns or savings. CIP Addresses the amount identified in the Capital Improvement Plan for the project and includes information on the overall budget status, and any variances such as forecasted overruns or savings. Risks: Describes any significant risk of delay, any significant risk to cost, or any significant change orders. These reports are intended to meet the reporting requirements of the Port s Master Policy, paragraph IV. B. 8. 2

5 MID No Port of Tacoma Semi-Annual Project Progress Report Project Title Page Phase Overall Project Status Schedule Upper Clear Creek Mitigation 4-5 CN Lower Wapato Combined Habitat 6 D North Lead Rail Improvements 7 CO 1940 East 11th St Deconstruction & Remediation 8-9 PL Budget , , , , , , , Mouth of the Hylebos M Port Parcel 2 Petroleum Contamination AO DE RI/FS PQ Contamination Taylor Way RI/FS Arkema RI/FS/CAP AO DE & 2920 Taylor Way RI/FS Port Parcel 1B (EBC) AO DE RI/FS Arkema North Boundary Allocation Report 19 C Roof Replacement at 401 Alexander Ave Bldg C Parcel 103 Steam Plant Property Cleanup RI/FS Project Management Software 23 CO 2016 Demolition Program CN Bridge Crane in the Strad House 26 D Port Parcel Taylor Way AO CN Executive s for 29 Key Completed Final Report for this Project Project within or ahead of target budget and schedule Either target schedule or budget is off Both target schedule and budget are off Negative Variance Status New Variance Previously Reported Schedule Completion on the Project Reports refers to: Substantial Completion Phases PL RI/FS PD D CN CO C M Planning Remedial Investigation/Feasibility Study Preliminary Design Design Construction Close Out Completed Monitoring 3

6 Upper Clear Creek Mitigation Project MID No: : $9,064,000 Construction Current Estimate: $9,064,000 Cost to Date: $8,815,763 Start: 7/19/2012 Schedule Completion: 3/31/2018 Project Manager: David Myers See Below See Below With respect to the general construction portion of the work, the construction portion of the project reached partial final completion in August of 2016, and has been in the Landscape Establishment Period. Due to nonperformance issues during this period, the Port has terminated the contract with the general contractor. Due to nonperformance issues, the Landscape Maintenance period will be extended likely to September 30, Additional authorizations associated with the claim will be secured in order to preserve the site. Scope The scope of work involved in the development of a 40+ acre habitat site to meet requirements of a settlement with the EPA and DOJ as well as establish a significant mitigation bank to be used for future critical area impacts associated with other Port projects. The project will provide riparian and salmon habitat in conjunction with related buffers. Project Cost Additional authorizations in the amount of $2,250,000 will be sought to resolve the nonperformance issues. The Port will seek full cost recovery from the contractor s surety. Capital Improvement Plan (CIP) Budget The CIP allocates $9,064,000 through Costs incurred that are not recovered will be charged against non-operating expense. 4

7 Risks Scheduling and staffing issues with the contractors have resulted in some noncompliance matters with respect to the establishment period. The Port suspended the establishment period in January and has subsequently terminated the construction contract. Performance issues will result in noncompliance with consent decree performance standards and will require formal response. Additional costs may be incurred by the Port if full cost recovery cannot be achieved with the Surety. The Port may be required to litigate this matter before a jury. Upper Clear Creek Mitigation 5

8 Lower Wapato Combined Habitat Project MID No: : $10,300,000 Design Current Estimate: $5,400,000 Cost to Date: $589,901 Start: 10/4/2012 Schedule Completion: Unknown Project Manager: David Myers Delayed On or Within None. This project is currently on hold. Commission authorization of $10,300,000 included $4,900,000 for work completed on the development portion of the site. Scope Construct a 17-acre habitat site for critical area impacts associated with other port development projects. Project Cost Current estimate is based on 95% level design. Capital Improvement Plan (CIP) Budget The CIP allocates $5,400,000 through Risks Tribal issues have delayed permit approvals. State funding of the transportation package that includes SR-167 could result in the loss of a location to place the spoils from this project, increasing the project costs and potentially increasing the Port s financial contribution to the SR-167 project. The current budget may be insufficient to complete the work due to escalation. 6

9 North Lead Rail Improvements Project MID No: : $18,100,000 Close Out Current Estimate: $17,300,000 Cost to Date: $16,652,946 Start: 8/31/2010 Schedule Completion: 7/11/2017 Project Manager: Carol Rhodes On or Ahead On or Within Construction is substantial complete as of July 11, Closing out project in third quarter of Project was completed on schedule. Project authorization on March 17, 2016, in the amount $12,092,050 for a total of $18,100,000. No other authorizations are anticipated. Scope Construct track modification for the expansion and operation of two (2) new 7,000 foot intermodal tracks between Alexander Ave and Milwaukee Way within the Tacoma Rail Yard for future industrial development to the East Blair Peninsula. Project includes modification of the west end of the yard to improve operational flexibility and fluidity in the rail corridor. Project Cost Estimated cost is currently $18,100,000, which will cover all project costs including design and construction. Capital Improvement Plan (CIP) Budget The CIP allocates $18,049,150 through Risks None. 7

10 1940 East 11th St Deconstruction & Remediation Project MID No: : $1,530,000 Planning Current Estimate: $1,530,000 Cost to Date: $479, Start: 2/1/2016 Schedule Completion: 12/31/2017 Project Manager: Rob Healy Delayed On or Within At the end of 2015 the project for demolishing the 117,000 SF PCB-contaminated building was completed and closed. However, two outstanding issues remained; the $1.9M claim tendered to the former property owner was unresolved, and residual chlorinated VOCs remain in soil and groundwater on the property. Negotiations with the most recent property owner have been unsuccessful, requiring litigation and possibly mediation to resolve the outstanding issues. A trial date of December 11, 2017, has been set by the judge, discovery and depositions are ongoing. To date, one of the two past property owners has been resistant to mediation. The trial date is set for December 11, The future remediation schedule will be determined based on mediation and possible outcome of the lawsuit. Exec Auth ($125,000 January 26, 2016) Exec Auth ($135,000 August 3, 2016) Commission Auth ($1,270,000 February 17, 2017) Scope The 2017 scope of work includes anticipated staff, consulting, and legal time to litigate the claim. Future remediation actions are not estimable at this time. Project Cost The estimated cost is $1,530,000 with $479,585 spent through June 2017 for settlement negotiations and preparation for litigation. 8

11 Capital Improvement Plan (CIP) Budget The CIP allocates $155,000 through The remaining funds were reallocated from the SR 516 (Willis St) Grade Separation. The 2017 budget included $2M for the SR 516 grade separation as part of FAST. The City of Kent has now indicated that there is no budget for SR 516 for the next five years. Risks Settlement negotiations toward a non-judicial solution may be unfruitful. The Port may lose the suit. Site cleanup may not be advanced in a timely manner to meet the needs of a redevelopment project East 11th St Deconstruction & Remediation 9

12 Mouth of the Hylebos Project MID Nos: , , , , , : $2,230,000 Monitoring Current Estimate: $1,330,000 Cost to Date: $1,143,970 Start: 6/30/2013 Schedule Completion: 12/31/2017 Project Manager: Rob Healy On or Ahead On or Within The OMMPs for Segments 3 through 5, Slip 1, and Pier 24 & 25 were approved and long term monitoring requirements are being implemented. Segments 3 through 5 bulk sediment sampling was completed in August 2016 and a draft report has been submitted to the EPA. Results were generally favorable with limited areas above sediment quality objectives. The frequency of future sampling will be determined following EPAs review of the document. Slip 1 3 quarterly monitoring events have been completed with one more to be completed in August Future monitoring will be required but the frequency will be determined via analysis of the four quarterly monitoring events. Piers 24 & 25 The sediment cap inspection was completed, a draft monitoring report has been completed and will be submitted to the EPA for review. An additional monitoring event was conducted in June American Construction s habitat area The design is under EPA review awaiting approval. The construction phase of the Mouth of Hylebos 2004 consent decree is anticipated to be complete by the end of 2017, and will thereafter transition to long-term monitoring. Initial, $200,000, June 20, Increase, $325,000, September 18, Increase, $1,705,000, February 19,

13 Scope Specific 2015 through 2017 tasks include: Issuance of quarterly reports. Work toward resolution of cost overrun claims for previous remedial actions. Work toward certification of completion of construction for tasks previously accomplished. Revisions to the draft OMMPs at Slip 1, Piers 24 & 25, and Segments 3-5 of the Waterway. Implementation of long-term monitoring at Slip 1, Piers 24 & 25, and Segments 3-5 of the Waterway. Monitor the design of American Construction s habitat area. Storm water source control monitoring on Port properties adjacent to the Hylebos. Project Cost The estimated cost is currently $1,300,000 which will cover the remaining 2017 tasks which are longterm monitoring tasks at Mouth of Hylebos Segments 3, 4, and 5, Slip 1, and Piers 24 & 25, and monitoring completion of American Construction s habitat area design. Capital Improvement Plan (CIP) Budget The CIP allocates $1,165,000 through This includes estimated potential long-term monitoring costs beyond Risks The EPA may request additional work on any of the outstanding issues. Although the sediment results in the Mouth appear favorable, there is still is potential for the recontamination issue on the Head of the Hylebos to be allocated to the Mouth. Mouth of the Hylebos 11

14 Port Parcel 2 Petroleum Contamination Agreed Order DE-9835 Project MID No: : $1,647,500 RI/FS Current Estimate: $1,647,500 Cost to Date: $1,456,736 Start: 12/3/2007 Schedule Completion: 12/31/2018 Project Manager: Sarah Weeks On or Ahead On or Within The remedial investigation report was approved by Ecology at the end of A Request for Qualifications for the completion of the FS and a draft cleanup action plan (DCAP) will be issued in August 2017 and the contract will be awarded by the end of September The feasibility study will begin this fall, to be submitted to Ecology by the end of April The DCAP will begin upon completion of the FS, to be submitted to Ecology by late summer/early fall Upon approval of the cleanup action plan, the next step it to negotiate a Consent Decree with Ecology for implementation of the cleanup action plan. Commission authorization of the negotiated Consent Decree is anticipated by the end of November Contract to be awarded by the end of September FS to be submitted by end of April DCAP to be prepared and submitted by the end of the third quarter The completion of the Agreed Order requirement (RI/FS and DCAP) is behind the original completion date, September 2015, due the removal of a development driver. Puget Sound Energy signed a 25 year lease in September of Planned site use will not interfere with the Port s cleanup action. Ecology has agreed to the schedule extension. The last Commission authorization increase was June 5, 2014, to complete the Agreed Order requirements. 12

15 Scope The project scope includes completing an RI/FS for the site, assisting Ecology in preparing a cleanup action plan, and reimbursing Ecology for their oversight costs. Project Cost The estimated cost is currently $1,647,500 which will cover the scope tasks presented above. Capital Improvement Plan (CIP) Budget The CIP allocates $251,000 through 2021 to complete the RI/FS/DCAP. A total of $4,900,000 is allocated to complete the remedy. Risks The petroleum contamination is present on the north end of the PSE property development site. PSE development is occurring on the south end of the site. Care is being taking during design and construction to minimize the potential for disturbing the petroleum contamination. Port Parcel 2 Petroleum Contamination Agreed Order DE

16 PQ Contamination 1201 Taylor Way Project MID No: : $837,000 RI/FS Current Estimate: $837,000 Cost to Date: $491,679 Start: 4/1/2007 Schedule Completion: 12/31/2018 Project Manager: Scott Hooton On or Ahead On or Within PQ entered into the Interim Cost Sharing Agreement on March 17, 2016 to complete a Remedial Investigation, Feasibility Study (RI/FS) and draft Cleanup Action Plan (CAP). The Port and PQ have completed a Feasibility Study Framework document. The Port and PQ are developing scope, schedule and budget for addressing data gaps required to complete a FS and revise the remedial investigation report. Sample collection and laboratory analysis occurred during 1H2017. The RI/FS and CAP is expected to be submitted to Ecology on or before December 31, Remediation is expected to occur during early 2019 or later. It will be necessary to amend or renegotiate terms of the Cost Sharing Agreement to address remediation costs. Commission authorized Port staff to enter into the agreement with PQ to complete the RI/FS and CAP on March 17, Remediation of remnant contamination has not been authorized. Scope Looking forward, the scope of this effort consists of: PQ and the Port will collaborate in the development of a RI/FS and CAP PQ will pay 60% and the Port will pay 40% of future shared costs Project Cost Estimated cost is currently $837,000, which is expected to be sufficient to complete the authorized scope of work. Project costs are partially offset with reimbursements from PQ under the Interim Cost Sharing Agreement; PQ remittances to date total $315,

17 Capital Improvement Plan (CIP) Budget The CIP allocates $175,000 through 2021 to complete the RI/FS/DCAP. The CIP does not reflect expected reimbursements from PQ which will be accounted for as ordinary income. Costs will be capitalized. Risks Scope of work is subject to change depending on agency direction. Monies received from PQ are potentially subject to reallocation under the agreement. PQ Contamination 1201 Taylor Way 15

18 Arkema RI/FS/CAP Agreed Order DE & 2920 Taylor Way Project MID No: : $3,440,742 RI/FS Current Estimate: $3,440,742 Cost to Date: $3,346,700 Start: 5/31/2007 Schedule Completion: 12/31/2021 Project Manager: Scott Hooton On or Ahead Forecast Overrun Preparation of a data gap work plan for the Feasibility Study is underway. Upon Ecology approval, Commission authorization will be requested to increase the Project to include work plan implementation costs. Implementation of the data gap work plan is planned for 2017 and The Feasibility Study (FS) is scheduled for completion in 2019, and the draft CAP submitted to Ecology during No additional authorizations have been requested since the last report. Scope Looking forward, the scope of this effort is anticipated to include: FS Data Gap Investigation Treatability Studies Technology Screening and Alternative Evaluation Interim Action(s) FS Reporting Draft Cleanup Action Plan Project Cost Estimated cost is currently $3,440,741 which is expected to be sufficient to complete the FS Data Gap work plan. Additional funding will be required to complete the items in the above-listed scope. Project costs are partially offset by a $3,115,807 MTCA grant, of which $1,517,228 has been paid out to the Port. 16

19 Capital Improvement Plan (CIP) Budget The CIP allocates $4,398,000 through Risks Selection of a cost-effective remedial approach that is compatible with an undefined future industrial land use. Arkema RI/FS/CAP Agreed Order DE & 2920 Taylor Way 17

20 Port Parcel 1B (EBC) Agreed Order DE-9553 Project MID No: : $1,438,000 RI/FS Current Estimate: $1,438,000 Cost to Date: $1,398,474 Start: 1/17/2013 Schedule Completion: 4/30/2017 Project Manager: Sarah Weeks On or Ahead On or Within The draft cleanup action plan (DCAP) was approved by Ecology in April This completes the requirements under the Agreed Order. The next step is to negotiate a Consent Decree with Ecology to implement a remedy. Negotiations for the Consent Decree are going slowly, Ecology is currently working on a response to the Port s request for a Consent Decree. Commission authorization of the negotiated Consent Decree is anticipated by the end of December The last Commission approval was April 22, 2014 providing project authorization to complete the Agreed Order requirements. Scope The project scope includes completing an RI/FS and DCAP for the site, assisting Ecology in preparing a cleanup action plan, and reimbursing Ecology for their oversight costs. Project Cost Estimated cost is currently $1,438,000 which will cover the scope tasks presented above. Capital Improvement Plan (CIP) Budget The CIP allocates $5,195,000 through 2021 to complete the RI/FS and DCAP, and implement the remedy. Risks Encountering unanticipated conditions during remedy implementation. 18

21 Arkema North Boundary Allocation Report Project MID No: : $337,400 Completed Current Estimate: $337,400 Cost to Date: $337,400 Start: 3/12/2014 Schedule Completion: 7/31/2017 Project Manager: Scott Hooton On or Ahead On or Within USG and Port have exchanged memos summarizing information that would form the technical basis for allocating costs for the remediation of the North Boundary Area (NBA). USG offered $25,000 payment to resolve the Port s reimbursement demand of $196,000 during a call with Port counsel in August. Face-to-face meetings and a series of telephone conference calls have not resulted in any substantive progress in resolving the Port s indemnification claim. The allocation report has been completed. Next steps will be decided after consultation and deliberation between staff, counsel and Commission. This is the final report for this project. No additional authorizations have been requested since the last report. Scope Looking forward, the scope consists of briefing Commission in Executive Session as a litigation item. Project Cost Estimated cost is currently $337,000, and is sufficient to complete the above-listed scope. Capital Improvement Plan (CIP) Budget The CIP allocates $762,000, through Risks Resolving the Port s indemnity claim may not be feasible without filing suit against Thermafiber and USG. It may be advisable to remediate the NBA so that sufficient monetary damages accrue to the Port to justify the expense of contested litigation. This would allow for the redevelopment of a portion of the Arkema property and a final resolution of the Port s claim. 19

22 Roof Replacement at 401 Alexander Ave Bldg 9407 Project MID No: : $4,935,000 Completed Current Estimate: $4,614,100 Cost to Date: $4,593,044 Start: 12/15/2013 Schedule Completion: 3/31/2017 Project Manager: Carol Rhodes On or Ahead On or Within Project has reached final completion. This is the final report for this project. No new authorizations. Scope Bldg 9405 at the EBC identified to need extensive roof and structure repairs and replacement as well as electrical, lighting and fire protection system upgrades. Work is being planned to provide a 20- year useful life expectancy for the building. Project Cost Project cost is currently $4,860,060, which will cover all project costs. Capital Improvement Plan (CIP) Budget The CIP allocates $4,860,060, through Risks None. 20

23 Parcel 103 Steam Plant Property Cleanup Project MID No: : $725,163 RI/FS Current Estimate: $725,163 Cost to Date: $545,344 Start: 2/12/2016 Schedule Completion: 6/30/2020 Project Manager: Sarah Weeks Delayed On or Within The Port previously planned to enroll the site in Ecology s Voluntary Cleanup Program (VCP), it may be ineligible due to the complicated nature of the site. Independent action may be needed in the event of a development driver. Port and City staffs plan to meet in August 2017 to discuss next steps for the environmental investigation and settlement. has been delayed due slow progress in settlement discussions with the City. No new authorizations since the last report. Scope Resume settlement discussions with City for their portion of cleanup costs. Collection of additional soil and groundwater data to fill data gaps to support completion of the RI. Completion RI, FS and DCAP. Project Cost The estimated cost is currently $725,163 to cover the above scope. The current estimate is unchanged from the original. Capital Improvement Plan (CIP) Budget The CIP allocates $744,000 through 2021 for site investigation activities and remedial action. 21

24 Risks The Port and City may not be able to reach a settlement on past costs. Additional field investigations may be needed to support allocation efforts and/or to support remedy selection. Ecology s preferred remedy may interfere with tenant or development action. If independent remedy is implemented the site may be listed by Ecology at a later date if they do not find the remedy adequate. Parcel 103 Steam Plant Property Cleanup 22

25 Project Management Software Project MID No: : $572,000 Close Out Current Estimate: $572,000 Cost to Date: $366,924 Start: 9/30/2016 Schedule Completion: 6/30/2017 Project Manager: Teri Johnson On or Ahead On or Within None. Contract Executed: September 30, 2016 Implementation: March Roll-out to users: June 30, 2017 Continued Implementation: On-going through This is the final report for this project. No additional authorizations are anticipated at this time. Scope Project Management (PM) software to allow Facilities Development (FD) to manage and report on projects as required by the current Master Policy. Previous software is obsolete and no longer supported (Oracle PCM). Currently using several Microsoft based systems to manage projects. Tracking Facilities Development projects in one software package will improve staff efficiency by reducing risk of errors and non-compliance with policies and statues, and provide management with timely project financials for projects, improving management oversight and transparency of information. Project Cost Nothing to report. Capital Improvement Plan (CIP) Budget The CIP allocates $325,000 for this project. The $247,000 balance was requested during the 2017 CIP update. Risks None at this time. 23

26 2016 Demolition Program Project MID Nos: , , : $927,184 Construction Current Estimate: $927,184 Cost to Date: $224,556 Start: 9/30/2016 Schedule Completion: 9/4/2017 Project Manager: Norman Gilbert On or Ahead On or Within The project was bid and awarded to Rhine Demolition in April. The demolition proceeded and all buildings have been removed. The project is near completion and is waiting on change order work to install fencing. Contract Award: April 2017 Substantial Completion: August 2017 The Contract was extended approximately 2 months to include the installation of fencing around one of the properties. Project authorization by Commission on December 15, 2016 in the amount of $927,184 for a total of $927,184. No additional authorizations are anticipated at this time. Scope The 2016 Demolition Program project consists of the demolition of three buildings: E 11th St (former fire station ) Ross Way (former VisiPrint ) Port of Tacoma Road (former Key Bank ) The demolition of these three buildings was budgeted and initiated as separate projects, and has been combined into a single program for efficiency. Removal of these three buildings will open the properties for future use and development. 24

27 Project Cost The total project cost including all stages of work is estimated at $927,184. Capital Improvement Plan (CIP) Budget The CIP allocates $928,000 for this project. Risks Delay in the installation of fencing due to industry peak season scheduling Demolition Program 25

28 Bridge Crane in the Strad House Project MID No: : $365,000 Design Current Estimate: $365,000 Cost to Date: $17,034 Start: 1/13/2017 Schedule Completion: 5/31/2018 Project Manager: Stanley Ryter Install Bridge Crane in Bays 3 and 4 (left) in Strad House On or Ahead On or Within Four new strads will arrive in November Unlike the existing models, the new strads will have a more efficient diesel-electric engine. A 12-ton capacity overhead bridge crane is necessary to perform engine maintenance on the new strads. The new crane will be installed in Bays 3 and 4 and will accommodate the heavy engine components mounted near the top of each unit. Engineering concluded this is the best option. Design completion July 15, 2017 Bidding Period begins August 1,, 2017 Installation of Bridge Crane February 2018 Project Closeout May 2018 Commission approval for $295,000 for a revised total of $365,000, on June 15, Scope Procurement of the Bridge Crane Structural and Electrical Upgrades Installation and Testing of the Bridge Crane Project Cost The total project cost including all stages is $365,000. Capital Improvement Plan (CIP) Budget The CIP allocates $416,000 for this project. Risks No risks identified. 26

29 Port Parcel Taylor Way Agreed Order Project MID No: : $150,000 Construction Current Estimate: $150,000 Cost to Date: $80,566 Start: 10/12/2016 Schedule Completion: 3/30/2018 Project Manager: Scott Hooton On or Ahead On or Within Ecology has approved an Interim Action Work Plan (IAWP) for remediating the site as part of the construction of site improvements by Port tenant Avenue 55. The IAWP will be implemented under an Agreed Order, at Avenue 55 s cost. Full base Rents will commence and deposits become nonrefundable after the agreed order is executed by Ecology. The agreed order will be executed after the conclusion of the public comment period closes on July 24. Remedial construction will occur during 2H2017 and construction of the completed warehouse facility is anticipated to be completed during 2Q2018. Executive authorization for $150,000 approved on April 14, Commission authorization for Agreed Order approved on June 15, Scope This Agreed Order obligates the Port to: Cooperate in Ecology s public participation process. Implement and complete the remedial activities described in the IAWP. Reimburse Ecology for oversight costs. Provide at least 30 days notice prior to property transfer/lease Start Date and provide for the continuing implementation of the order after transfer. Renegotiate the schedule and scope of work in the event of default by Avenue

30 Project Cost Estimated cost is currently $150,000 which is expected to be sufficient to negotiate and execute the agreed order for the implementation of the IAWP at 1514 Taylor Way. The Executive also includes funds to support separate agreed order negotiations between Ecology, other Potentially Liable Parties (Occidental Petroleum, Schnitzer Steel and Stericycle) and the Port for historical contamination for the Taylor Alexander Avenue Fill Area (TAAFA) Taylor Way is part of the TAAFA, and the agreed order for the implementation of the IAWP is expected to reduce the Port s TAAFA liability. However, future Commission authorization will be required to enter into an agreed order for the TAAFA. Capital Improvement Plan (CIP) Budget The CIP allocates $150,000 for this project. Risks Default on lease requirements by Avenue 55 would result in loss of lease revenue and increase the liability to the Port for remediation costs associated with 1514 Taylor Way and the TAAFA. Port Parcel Taylor Way Agreed Order 28

31 Port of Tacoma Executive s No. Serial No. Project Title $ - this request 1 POT Cleanup Monitoring Cascade Timber No. 3, Murray Pacific, Pony Cap, Portac $36,536 2 POT Parcel 94 Feasibility Study $26,700 3 POT Bridge Crane in the Stradhouse $100,000 4 POT Admin Bldg Cable Plant Relocation $25,000 5 POT Sediment Sampling Plan Review $12,176 6 POT Wasser Winters Cleanup Monitoring $34,000 7 POT Maintenance Building Mezzanine & New Crane Parts Shed $70,000 8 POT EBC Boat Ramp Assessment $30,000 9 POT Maintenance Bldg Paving Subsidence $24, POT East 15th St Bldg Demo $60, POT Marc Street Improvements $85, POT Demolition Program, Asbestos Abatement $10, POT Asset Management Pier Assessment Program $80, POT Taylor Alexander Fill Areas Agreed Orders $150, POT Parcel 86 Monitoring Well Decommissioning $6, POT Storey Pit Reclamation Plan $150, POT Port Admin Bldg Cable Plant Relocation $150, POT Blair Sediment Investigation $200, POT Union Pacific Parcel Remediation & Monitoring $7, POT ESA Prospective Property Purchase $16, POT T7 Security Bldg CBP Offoce Renovation - HBM Survey $6, POT POT Rd CBP Office Renovation - HBM Survey $12, POT East 11th Street Building Demo $40, POT Stormwater Infrastructure Jetter-Camera $28, POT Marc Road Wetland Delineation $7, POT Replace Post Indicator Valve $39, POT UST N-9, 10, 20,21,22, P-27, 28, U-1 $8, POT Phase II ESA 2302 Ross Way TOTAL $23,500 $1,435,979 29