Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90Seattle City Light 2015 Annual Report THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT NOTES TO FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 - 56 - signed an Administrative Order on Consent (AOC) with the EPA and Washington State Department of Ecology to conduct a remedial investigation and feasibility study to prepare a site remedy. The EPA approved the feasibility study in November 2012. In February 2013, the EPA issued the Proposed Plan for cleanup of the Lower Duwamish Waterway Superfund Site. In November 2014, the EPA issued its final Record of Decision indicating its preferred alternative clean-up with an estimated cost of $342.0 million. At this time, the cost of certain additional undefined requirements by the EPA is unknown. The Department’s ultimate liability is indeterminate. In November 2012, the EPA issued general notification letters to parties informing them of their potential liability for the Lower Duwamish Waterway cleanup. The City and other three parties who signed the AOC with the EPA agreed to invite some of those parties to participate in an alternative dispute resolution process (the “allocation process”) to resolve their respective shares of past and future costs. 44 parties are participating. The City hired an allocator and the allocation process officially began in April 2014. The Department agreed to administer the allocator’s contract, estimated to cost about $4.0 million over a four year period. Parties participating in the allocation process will share the cost of the allocator and the process. The City is also responsible for investigation and cleanup at the Port of Seattle Terminal 117. The City agreed to pay 40% of the costs to clean up the uplands and river sediment parts of the site, currently estimated to cost $27.5 million, and 100% of the costs to clean up contamination in adjacent streets, estimated to cost $10.5 million. The City’s share for the uplands and sediments is paid 100% by the Department. The City’s share for the adjacent streets is split between the Department and Seattle Public Utilities according to a Memorandum of Agreement (MOA) signed in August 2014. According to this MOA, Seattle Public Utilities will pay 2.5% for some portions of the construction and up to 100% for other parts of the cleanup and restoration. The cleanup of the sediments and the upland is complete. The cleanup of the streets began in 2015 and is expected to be finished in 2016. ● North Boeing Field/Georgetown Steam Plant—The City, King County, and Boeing signed an Administrative Order issued by the Washington State Department of Ecology (Ecology) requiring them to investigate and possibly remove contamination in an area that encompasses North Boeing Field, the Department’s Georgetown Steam Plant, and the King County Airport. This site was also the subject of the lawsuit brought by the City against Boeing. Boeing agreed to pay 67% of the costs for Ecology’s implementation of the current order. The order requires completion and then implementation of a remedial investigation/feasibility study work plan. The final remedial investigation work plan was issued in November 2013. In January 2015, all parties executed the First Amendment to the North Boeing Field/Georgetown Steam Plant Agreed Order, making all parties responsible for conducting and completing remedial action at the site. The City is responsible for 1/3 of the costs, with the Department’s share at 90% and Seattle Public Utilities’ share at 10%. The implementation of the RI work plan is ongoing and will continue into the first quarter of 2016. The schedule for the feasibility study (F/S) anticipates a draft F/S document in May 2018 and the Final F/S document in November 2018. Total estimated costs for the current order are $6.0 million. Costs as of December 31, 2015 are approximately $3.9 million with an additional $2.1 million projected through completion of the F/S. Boeing and the City will each pay 100% of costs for remedial action at their own facilities. The Department has included in its estimated liability those portions of the environmental remediation work that are currently deemed to be reasonably estimable. Cost estimates were developed using the expected cash flow technique in accordance with GASB Statement No. 49 of the GASB. Estimated outlays were based on current cost and no adjustments were made for discounting 56