1. PORT OF TACOMA

2. Request authorization to award Professional Services Agreement (PSA) No. 067358 with Geomatrix; and PSA No. 067359 with Hart Crowser for work associated with the remediation and redevelopment of the Occidental Chemical property. Professional Services Agreement Awards Environmental Consulting Services

3. PORT OF TACOMA In May 2007, the Commission authorized Port Resolution No. 2007-04 directing port staff to acquire property on the Blair-Hylebos Peninsula (BHP) to support maritime development.In May 2007, the Commission authorized Port Resolution No. 2007-04 directing port staff to acquire property on the Blair-Hylebos Peninsula (BHP) to support maritime development. In July 2007, the Commission authorized port staff to enter into a lease agreement on the BHP with YTTI.In July 2007, the Commission authorized port staff to enter into a lease agreement on the BHP with YTTI. In September 2007, the Commission authorized port staff to enter into a lease agreement on the BHP with TOTE.In September 2007, the Commission authorized port staff to enter into a lease agreement on the BHP with TOTE. In May 2007, the Commission authorized Port Resolution No. 2007-04 directing port staff to acquire property on the Blair-Hylebos Peninsula (BHP) to support maritime development.In May 2007, the Commission authorized Port Resolution No. 2007-04 directing port staff to acquire property on the Blair-Hylebos Peninsula (BHP) to support maritime development. In July 2007, the Commission authorized port staff to enter into a lease agreement on the BHP with YTTI.In July 2007, the Commission authorized port staff to enter into a lease agreement on the BHP with YTTI. In September 2007, the Commission authorized port staff to enter into a lease agreement on the BHP with TOTE.In September 2007, the Commission authorized port staff to enter into a lease agreement on the BHP with TOTE. Background Environmental Consulting Services

4. PORT OF TACOMA Occidental Chemical Corporation (Oxy) property located at 605 and 709 Alexander Avenue is subject to Resolution No. 2007-04 and is needed to fulfill the Port’s lease obligations to develop the YTTI terminal for NYK and to relocate TOTE. The Port of Tacoma is negotiating terms for a purchase and sales agreement needed to acquire the Oxy property. Oxy is subject to an Administrative Order on Consent (AOC) with US EPA and Washington Department of Ecology to perform cleanup. Occidental Chemical Corporation (Oxy) property located at 605 and 709 Alexander Avenue is subject to Resolution No. 2007-04 and is needed to fulfill the Port’s lease obligations to develop the YTTI terminal for NYK and to relocate TOTE. The Port of Tacoma is negotiating terms for a purchase and sales agreement needed to acquire the Oxy property. Oxy is subject to an Administrative Order on Consent (AOC) with US EPA and Washington Department of Ecology to perform cleanup. Background Environmental Consulting Services

5. PORT OF TACOMA Site Location Hylebos Waterway Blair Waterway Puyallup River N MILE SITE Commencement Bay

6. PORT OF TACOMA Background Current Land Use

7. PORT OF TACOMA Background 605 Alexander Avenue Predevelopment – Mudflat Puyallup River Delta Development by dredge and fill (1920s) Chemical production facility construction (1929) Chlorine-Alkali plant (1929-2002) Chlorinated solvent plant (1947-1973) Products Chlorine gas, caustic soda, bleach TCE, PCE Occidental Chemical Corporation Manufacturing Site

8. PORT OF TACOMA Background 709 Alexander Avenue Predevelopment – Mudflat Puyallup River Delta Development by dredge and fill (1920s) Bulk Petroleum Storage (1938-1979) Tetraethyl lead plant (late 1970s - early 1980s) Operations discontinued (late 1980s) Products Petroleum Fuel additives Tetraethyl lead Oxy purchase in 1997 PRI - Fletcher Oil Bulk Petroleum Terminal

9. PORT OF TACOMA Background Contaminants and Impacted Media Elevated pH in groundwater and near- shore surface water Solvents in soil, groundwater, surface water and sediment Dioxin and PCB in soil and sediment Metals and pesticides within embankment fill material Petroleum hydrocarbons in soil and groundwater

10. PORT OF TACOMA Background Sources – High pH (>10) Caustic Soda - NaOH Calcium Hydroxide - Ca(OH) 2 Lime and Lime Process Wastes

11. PORT OF TACOMA Background Alkaline Discharge into Hylebos Waterway

12. PORT OF TACOMA Background Chlorinated Solvents TCE and PCE production (1947-1973) Upland releases – product, waste liquids and process waste Waterway releases – process waste, groundwater

13. PORT OF TACOMA

15. Background Hylebos Chemical Data

16. PORT OF TACOMA Background Current Pumping System

17. PORT OF TACOMA Background Cleanup Schedule Agency approval of groundwater and sediment remediation methods – September 2009 Complete 90% design of sediment remedy – December 2009 Complete 90% design of groundwater remedy – July 2010 Begin cleanup – Q4-2010 (or later)

18. PORT OF TACOMA Background Redevelopment Schedule TOTE Construction: January 2009 through September 2010 TOTE construction scheduled to begin prior to selection of cleanup methods and completion of remediation design Close coordination and collaboration between Oxy, EPA/Ecology and the Port will be required to fulfill the AOC requirements and the Port’s maritime development obligations

19. PORT OF TACOMA Port, Agency and Oxy Coordination Strategic Support for these issues: pH plume Solvent plume and onsite waste disposal areas Sediment source control Due diligence document review Geomatrix Scope of Work Environmental Consulting Services

20. PORT OF TACOMA Coordination between Port and design teams (KPFF, Moffatt & Nichol, and Jacobs) Planning and execution of testing to support design process Developing engineering recommendations to address the following: Replace and relocate existing remediation systems Manage runoff from stormwater exposed to contaminated soils Hart Crowser Scope of Work Environmental Consulting Services

21. PORT OF TACOMA Removal of abandoned process lines encountered during construction Placement of structures within elevated pH areas Manage soil vapor intrusion within buildings Building, utility or paving system modifications necessary to accommodate future remediation Soil and groundwater management during construction Provisions for final remediation systems that should be addressed as part of development planning Hart Crowser Scope of Work Environmental Consulting Services

22. PORT OF TACOMA ItemGeomatrix Hart Crowser Request for authorization $327,200$375,000 Contract Cost Environmental Consulting Services

23. PORT OF TACOMA The Q1 2008-2012 Program Budget allocates a total of $1,148,000 in 2008 for the coordination of the Port’s redevelopment and Oxy’s remediation, including this effort. Source of Funds Environmental Consulting Services

24. PORT OF TACOMA Request authorization to award Professional Service Agreement No. 067358 with Geomatrix in a not to exceed amount of $327,200; and authorization to award Professional Services Agreement No. 037359 with Hart Crowser in a not to exceed amount of $375,000 Occidental Remediation and Redevelopment Program. Conclusion Environmental Consulting Services