Only one project fails to meet both budget/time goals

By David Guest

Tacoma Daily Index editor

The Port of Tacoma released its semi-annual project progress report Tuesday, Aug. 16, revealing that nine of the 27 projects in the report are now complete and only one project both lags behind and is over budget.

In all, $125 million has been allocated by the Port Commission for the projects, in various stages of progress, through the first half of 2016. Nine projects, including the Port of Tacoma Road reconstruction, were declared functionally complete. Seven projects were deemed to be behind schedule, primarily due to legal and permitting delays.

The only project said to be over budget is the 1940 East 11th Street deconstruction and remediation. The demolition of the 117,000 square foot building, that the Port said was contaminated with PCBs and other hazardous materials, was completed in 2015. However, the current scope of the project and its authorized $125,000 budget are to advance the $1.9 million claim the Port of Tacoma has made against the previous owner, Sound Mattress and Felt Co. The Port filed the claim over residual chlorinated volatile organic compounds (VOCs) that remain in the soil and groundwater on the property.

The property on the Tacoma tide flats previously housed Brown & Haley’s warehouses for more than 40 years. The Port purchased the property in 2006 and leased the building to the Tacoma candy maker until 2007, when the building was found to be structurally unsound. Brown & Haley relocated to Fife.

According to the Port’s progress report, negotiations with Sound Mattress and Felt Co. have been unsuccessful, requiring a “more aggressive litigation approach.” The Port’s attorney recommended an additional $125,000 for legal expenses due to “opposing counsel’s (John Spencer) irascible reputation.” The preparation for an anticipated lawsuit will lead to cost overruns in the budget for the project’s current phase.

Port of Tacoma project report, January-June 2016

Upper Clear Creek mitigation – The development of a 40 acre habitat site to provide riparian and salmon habitat to meet requirements of a settlement with the EPA and Department of Justice. The project is projected to come in under the $9 million budget by the March 2018 scheduled completion time. Budget: $9.1 million. Cost to date: $7.9 million. Current estimate: $9 million. Completion date: March 2018 (on schedule).

3009 Taylor Way MTCA interim actions and cleanup action plan – Long-term monitoring at the former Atofina Chemical Log Yard site on Taylor Way. The project, which included installation of groundwater monitoring wells and long-term monitoring, is under budget. Budget: $13.8 million. Cost to date: $13.1 million. Current estimate: $13.8 million. Completion date: Aug. 1, 2016 (on schedule).

Pier 4 phase 1 removal action – The project entails the demolition of Pier 4 and dredging and disposal of contaminated material. The EPA declared the site clean in February 2016 and the contractor completed its work at the end of April 2016. The $19.1 million dollar project is within budget and a final report to the EPA is in progress toward scheduled project completion in November 2016. Budget: $18 million. Cost to date: $15.5 million. Current estimate: $15.6 million. Completion date: Nov. 2016 (on schedule).

Parcel 14 grading and site stabilization – The project to rough grade the site to accommodate future commercial use was finished in March 2016. The project used $4.9 million of the $10.3 million authorized, with the remainder set aside for the advanced mitigation project which is currently on hold. Budget: $10.3 million. Cost to date: $4.8 million. Current estimate: $4.9 million. Completion date: March 2016 (completed).

Lower Wapato combined habitat – The project to construct a 17 acre habitat site for critical area impacts associated with other port development projects is currently delayed due to tribal issues affecting permit approvals. Budget: $10.3 million. Cost to date: $678,404. Current estimate: $5.4 million. Completion date: unknown (delayed).

North Lead rail improvements – The $18.1 million project is scheduled for completion in May 2017. The project involves rail track modification for the expansion and operation of two new mile-long intermodal tracks between Alexander Ave. and Milwaukee Way within the Tacoma rail yard for future industrial development to the East Blair Peninsula. The port report shows the project to be on time and within budget. Budget: $18.1 million. Cost to date: $3.9 million. Completion date: May 2017 (on schedule).

1940 East 11th St. deconstruction and remediation – The project to demolish and 117,000 square foot building, contaminated with PCBs, was completed at the end of 2015. This project seeks to resolve legal issues and remediation actions at the site. The port tendered a $1.9 million claim to the former property owner which remains unresolved. Residual chlorinated VOCs remain in soil and groundwater on the property. Negotiations with the the property owner had not been sucßcessful, leading the port’s attorney to recommend a legal budget of $125,000 to continue pursuing cost recovery and contribution for past contaminant releases at the site. Budget: $125,000. Cost to date: $10,749. Forecast: $260,000. Completion date: June 2017 (delayed).

Kaiser remediation agreed order DE05698 – The port commission authorized an entry into a consent decree for implementation of a cleanup action plan to begin long-term monitoring at the former Kaiser aluminum smelter. The scope of the effort consists of cooperation in Department of Ecology’s public participation process; implementation of groundwater monitoring; and complying with the provisions of the Materials Management Plan for remnant contamination. Budget: $10.5 million. Cost to date: $10.5 million. Completion date: Nov. 2016 (on schedule).

Marine View Drive structures demolition – The $706,000 project to demolish six structures was completed at the end of last year. Budget: $706,340. Cost to date: $514,764. Completion date: Dec. 31, 2015 (on schedule).

Mouth of the Hylebos – The project is in the long term monitoring phase at slip 1 and piers 24 & 25. Budget: $2.3 million. Cost to date: $1 million. Completion date: December 2017 (on schedule).

Port parcel 2, petroleum contamination agreed order DE-9835 – The estimated cost of $1.6 million will  cover completing an RI/FS for the site, assisting the Department of Ecology in preparing a cleanup action plan and reimbursing DOE for oversight costs. Budget: $1.6 million. Cost to date: $1.3 million. Completion date: December 2017 (delayed).

PQ contamination, 1202 Taylor Way – The Port and PQ Corp. have begun discussions on the scope, schedule and budget for completing a feasibility study and revising the remedial investigation report. Delayed. Budget: $837,000. Cost to date: $392,833. Completion date: Dec. 31, 2016 (delayed).

Arkema RI/FS/CAP Agreed Order DE-5668 – 2901 & 2920 Taylor Way – Preliminary design phase of $3.4 million project, including FS data gap investigation, treatability studies, technology screening and alternative evaluation, interim actions and FS reporting. Budget is considered sufficient to complete the FS data gap work plan. Additional funding required. Budget: $3.4 million. Cost to date: $3.2 million. Completion date: Feb. 12, 2016.

Port parcel 1B (EBC) agreed order DE-9553 – The final remedial investigation and feasibility study was approved by Ecology on March 3, 2016. The draft cleanup action plan is under Ecology review. Upon approval, the next step is to negotiate a consent decree with Ecology to implement remedy. The port reports that the project is behind schedule. Budget: $1.4 million. Cost to date: $1.3 million. Completion date: Dec. 30, 2016 (delayed).

Arkema north boundary allocation report – USG and the Port have exchanged memos summarizing information that would form the technical basis for allocating costs for the remediation of the North Boundary Area (NBA). Face-to-face meetings and a series of telephone conference calls have not resulted in any substantive progress in resolving the Port’s $195,000 indemnification claim. Resolving the Port’s indemnity claim may not befeasible 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.  Delayed. Budget: $337,400. Cost to date: $188,246. Completion date: March 31, 2017 (delayed).

Port of Tacoma Road Reconstruction – ILA with City of Tacoma Project – Completed. Replace surface pavements with concrete between the curb lines on Port of Tacoma Road from E 11th St. to Marshall Way (approx. 7,300 LF). Install concrete sidewalk where missing; Restripe per original channelization; Install permanent signals at WUT (Lot F) and Lincoln Ave; Install conduit for future ITS. Budget: $11.8 million. Cost to date: $11.8 million. Completion date: July 31, 2016 (completed).

Saltchuk Aquatic Mitigation Site – Preliminary Design – Project on hold during entire reporting period. Project may be revived to include only shoreline restoration under a new commission authorization. $660,435 has been spent to date to cover Basis of design and permit package. Project on hold as sponsor re-scopes the project. Budget: $745,000. Cost to date: $660,435. Completion date: Jan. 1, 2016 (delayed)

Shoreline stabilization – Project to restore the shoreline that has washed away at APMT, OCT, TOTE, and Husky terminals. The parcel at East F St was sold prior to the completion of the design phase. The work at EBC was removed due to slag along the shoreline that must be removed prior to restoration and will be completed as part of a larger interim action plan. Budget: $776,760. Cost to date: $492,533. Current estimate: $520,385. Completion date: Jan. 18, 2016 (completed).

Roof Replacement at 401 Alexander Ave Bldg 9407 – Bldg 9405 at the EBC identified to need extensive roof and structure repairs and replacement as well as electrical and fire protection system upgrades. Work is being planned to provide a 20-year useful life expectancy for the building. Budget: $4.9 million. Cost to date: $4.1 million. Current estimate: $4.9 million. Completion date: Dec. 2016 (on schedule).

PCT electrical testing and repair – Electrical testing and troubleshooting at Pierce County Terminal. Replacement of power factor correction units and addition of power quality metering.Budget: $750,000. Cost to date: $410,000. Current estimate: $425,000. Completion date: June 30, 2016 (physically complete).

Repair to buildings at 2602 & 2608 Port of Tacoma Rd – New emulsion coating on barrel roof of 2608. Replace canopies on both buildings, repair water damage within office space of 2602. Budget: $408,000. Cost to date: $389,955. Completion date: April 30, 2016 (complete).

Parcel 103 steam plant property cleanup – Two groundwater monitoring events have been completed, and remedial investigation, feasibility report and draft cleanup action plan have been completed under the DOE’s voluntary cleanup program. Based on these results, settlement discussions with the City will re-commence. Budget: $725,163. Cost to date: $512,490. Current estimate: $725,163. Completion date: Dec. 2017 (delayed; within budget).

Surface and tamp rail – With one bidder only, additional funds were requested of commission to perform the work. Corrected rail grade settlement along the direction of travel and corrected rail alignment horizontally and vertically between adjacent rails. Budget: $484,440. Cost to date: $458,672. Current estimate: $458,672. Completion date: Jan. 22, 2016 (completed).

Replace SIM rail switches – Replace 5 turnouts complete with switches and ther components. Replace ballast and ties and tamp .Budget: $935,000. Cost to date: $604,606. Current estimate: 604,606. Completion date: Jan. 2016 (completed).

Roof Replacement at 3701 Taylor Way – The building is in need of extensive roof repairs and replacement. Work includes replacement of roof, structural repairs and roof anchors for maintenance access. Budget: $1.8 million. Cost to date: $1.4 million. Current estimate: $1.4 million. Completion date: May 2016 (completed).

Alexander Avenue wetland – The project is complete and has met the first two year bench marks as set forth in the settlement. Re-establishment of a 2 acre critical area as part of a settlement with the EPA and DOJ. Budget: $328,000. Cost to date: $317,442. Current estimate: $328,000. Completion date: June 2016 (completed).

Maytown oversight – This project is for oversight activities associated with the Maytown Mine site. The Port is maintaining the mining permit viability to preserve the property’s highest and best use for the purpose of sale. Budget $470,000. Cost to date: $272,556. Current estimate: $470,000. Completion date: Sept. 28, 2018 (on schedule; within budget).