PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6a 
ACTION ITEM 
Date of Meeting     March 10, 2015 
DATE:    February 19, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Elizabeth Morrison, Director, Corporate Finance 
SUBJECT:  Resolution No. 3703 authorizing the issuance and sale of limited tax general
obligation (G.O.) and G.O. refunding bonds of the Port in the aggregate principal
amount of not to exceed $200 million 
ACTION REQUESTED 
Request Second Reading and Final Passage of Resolution No. 3703: A Resolution of the Port
Commission of the Port of Seattle, authorizing the sale and issuance of limited tax general
obligation and refunding bonds of the Port in the aggregate principal amount of not to exceed
$200,000,000 for eligible Port purposes, including payment of all or a portion of the Port's
contribution for the Alaskan Way Viaduct Replacement Program, and refunding of certain
outstanding obligations of the Port; and authorizing a Designated Port Representative to approve
certain matters relating to the bonds including date or dates of the sale of the bonds, approval of
the bid offering, acceptance of bids for the bonds, execution of all documents and actions
necessary to sell and deliver the bonds, preparation and dissemination of a preliminary official
statement and final official statement; and providing for continuing disclosure. 
SYNOPSIS 
Commission authorization is requested to issue G.O. Bonds in an amount estimated not to exceed
$200,000,000 million (including cost of issuance) to pay for the Port's first installment to the
Alaskan Way Viaduct Replacement Program pursuant to the Port's funding agreement with the
State of Washington effective August 27, 2013, and to refund up to $57,380,000 outstanding
bonds (See Exhibit A) to achieve debt service savings. The actual amounts refunded and the
associated savings will be based on market conditions at the time of sale of the G.O. Bonds. 
BACKGROUND 
On August 27, 2013, the Port entered into a funding agreement with the State of Washington for
the Port's contribution to the State's program to replace the Alaskan Way Viaduct with a deep
bore tunnel. Under the funding agreement, the Port is obligated to pay the State $120 million on
May 1, 2015, and $147 million on May 1, 2016 for a total of $267 million. In anticipation of
these payments, the Commission has set aside cash that will fund an estimated $50 million of
this total which can be applied to either payment. T he remaining $217 million will be funded
with proceeds from the sale of general obligation bonds. This issuance of G.O. Bonds will
provide for the $120 million first installment due on May 1, 2015. The State will provide the

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 19, 2015 
Page 2 of 4 
Commission with a program update on or before the date of second reading of Resolution No.
3703. 
The Port's on-going debt management program includes the monitoring of existing debt for
opportunities to refund at lower interest rates and reduce debt service. The current low interest 
rate environment offers an opportunity to potentially refund general obligation bonds issued in
2006 and meet or exceed the Port's debt service savings; the current savings estimate is 12% 
target.  The 2006 bonds are callable on June 1, 2015.  The 2006 bonds were issued for the
purpose of refunding bonds originally issued in 1999 and 2000 to fund a portion of the costs of
the Terminal 18 expansion project.
ADDITIONAL BACKGROUND 
The G.O. Bonds are being issued pursuant to Resolution No. 3703. The G.O. Bonds will be
issued in one or more series. The Bonds will be governmental purpose bonds, the interest on
which will be exempt from all federal income tax. 
Resolution No. 3703 (the G.O. Bond Resolution) is similar in all material respects to other G.O.
Bond Resolutions. G.O. Bonds are backed by the full faith and credit of the Port and require that
the Port levy taxes sufficient, along with other funds, to pay scheduled principal of and interest
on the Port's outstanding G.O. Bond obligations. The portion of the G.O. Bonds that will refund
the 2006 bonds is for interest cost savings only and not for funding any new spending, nor will it
extend the current final maturity date of the refunded bonds. 
The G.O. Bond Resolution delegates to the Designated Port Representative (the Port's Chief
Executive Officer or the Port's Chief Financial and Administrative Officer) the authority to
approve the sale of the G.O. Bonds within parameters established by the Commission in the G.O.
Bond Resolution. Commission parameters that limit the delegation are a maximum principal
amount, minimum savings rate, maximum interest rate, and expiration date for the delegated
authority. If the G.O. Bonds cannot be sold within these parameters, further Commission action
would be required. The recommended delegation parameters are: 
Maximum size:                              $200,000,000 
Minimum aggregate debt service savings (for the refunding):     4.00% 
Maximum interest rate:                             4.50% 
Expiration of Delegation of Authority:                    August 31, 2015 
Upon adoption, Resolution No. 3703 (the G. O. Bond Resolution) will authorize the Designated
Port Representative to select the manner of sale, approve the final sale terms, execute an escrow
agreement, pay the cost of issuance and take other action appropriate for the prompt execution
and delivery of the G.O. Bonds. Unlike most Port bonds that are sold through a negotiated
process with the Port's underwriting team, the G.O. Bonds are expected to be sold through a
competitive sale in which, any banking firm can bid on the Bonds and the sale is awarded to the
bank with the lowest overall interest rate. The Port's debt management procedures allow for
competitive sales for appropriate transactions where, in consultation with the Port's Financial

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 19, 2015 
Page 3 of 4 
Advisor, a competitive sale is likely to provide better financial results than a negotiated sale.
Competitive sales are well suited to transactions that have a relatively simple, high quality credit
like the Port's G.O. Bonds sold in relatively stable market environments.
Piper Jaffray, Inc. is serving as Financial Advisor, K&L Gates LLP is serving as bond counsel
and Pacifica Law Group, LLP is serving as disclosure counsel on the transaction. 

ATTACHMENTS TO THIS REQUEST 
Resolution No. 3703 
GCB 1140 SR99 Alaskan Way Replacement Program Funding Agreement between
WSDOT and Port of Seattle 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
February 24, 2015, First Reading of Resolution 3703. 
February 10, 2015, Commission was briefed on the status of the Alaskan Way Viaduct
Replacement Project. 
October 28, 2014, Commission was briefed on the 2015-2019 Draft Plan of Finance.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 19, 2015 
Page 4 of 4 
Exhibit A 
Candidates for 2015 Bond Refunding (1) 

Maturity Year       Principal 
(June 1)          Amounts 
2016         2,900,000 
2017         3,050,000 
2018         3,205,000 
2019         3,370,000 
2020         3,545,000 
2021         3,725,000 
2022         3,920,000 
2023         4,120,000 
2025         8,880,000 
2027         10,000,000 
2029         10,665,000 

(1) Actual refunded bonds will depend on market conditions