PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       6f 
ACTION ITEM 
Date of Meeting    September 11, 2014 
DATE:     September 3, 2014 
TO:       Tay Yoshitani, Chief Executive Officer 
FROM:    Ralph Graves, Acting Director, Stormwater Utility 
Stephanie Jones Stebbins, Director Seaport Environmental & Planning 
Marilyn Guthrie, Stormwater Program Manager 
SUBJECT:   First Reading of Resolution No. 3696, Authorizing Stormwater Utility Formation 
ACTION REQUESTED 
Request First Reading of Resolution No 3696: A Resolution of the Port Commission of the Port
of Seattle establishing a Port Stormwater Utility and adopting a Stormwater Utility Charter
pursuant to RCW 53.08.040 et seq. and other statutes, for the purpose of establishing, operating,
furnishing, and funding a stormwater system comprising facilities, services, and programs for the
management, collection, control, conveyance, treatment, and discharge of stormwater within the
Port of Seattle. 
SYNOPSIS 
The Port of Seattle and its tenants manage nearly all of the stormwater runoff from our Seaport
and Real Estate (Marine) properties under municipal and industrial permits and the Seattle-
Tacoma International Airport (Airport) under its individual NPDES Waste Discharge permits
issued by the state Department of Ecology. Both the Airport and Marine stormwater systems are
extensive and require a significant cost to maintain, inspect, upgrade and operate to meet
regulatory requirements. In addition, the Port and its tenants pay fees to support the City of
Seattle's and City of SeaTac's stormwater utility with little return investment in the maintenance
and operation of the port system. In 2014, the Port and its tenants will pay an estimate $4.1
million to the City of Seattle in stormwater fees. 
The State law RCW 53.08.040, RCW 53.08.043 and other statutes grant port districts the
authority to establish and operate municipal stormwater systems and stormwater utilities to serve
port district properties and to set the terms, conditions, and rates for such an enterprise. 
Establishing and operating a port stormwater utility will provide direct funding dedicated to local
oversight, attention, and management of the Port's stormwater system. 
The utility service area proposed in the Resolution and Charter would broadly encompass all
Port-owned property in King County. The Utility would consist of two divisions: the Marine
Utility and the Airport Utility. The Utility Director will determine the actual physical boundaries
of the Marine Utility and Airport Utility.  For Port-owned land that discharges to other
jurisdictions, the Director can negotiate agreements with other jurisdictions about management
of stormwater systems and payment of stormwater fees.

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 3, 2014 
Page 2 of 3 
The Port Commission would set the Stormwater Service Charge applicable to all properties
within the Utility. The Utility Director would have the authority to establish other charges for
administrative costs, individual customer charges, and design review fees, as determined to be
necessary. 
The Resolution directs staff to implement the Port Stormwater Utility by January 1, 2015.
However, the Airport Utility will be activated by subsequent Commission action. 
BACKGROUND 
The Port and the City of Seattle have discussed the Port's concern about the inequity of this
situation for several years. In the meantime, the costs to the Port and our tenants for stormwater
management have continued to escalate due to increasingly stringent water quality permits, the
need to maintain and upgrade Port infrastructure as well as comply with programmatic
requirements. The Port has identified priority needs for our stormwater system totaling
approximately $85 million to $135 million over the next five years.
Since 2011, the Port has paid the City's drainage fees under protest. Starting in 2013, and most
recently after the Stormwater Issues Briefing on June 3, Port staff met with Seattle city officials
to identify our concerns and the financial needs of our system. The current City administration
and Port staff discussed options under the current city utility structure, but found none that would
result in sufficient funds to meet the Port's stormwater system requirements. 
The Port has not only the need, but also the legal authority to establish a Stormwater Utility for
the Divisions. The action to create a Port Stormwater Utility would also allow the future Utility
expansion to encompass certain Aviation Division properties associated with the Airport system 
in the future. 
In previous briefings, the background and history of stormwater fees have been laid out in detail.
Staff now recommends moving forward to establish the Stormwater Utility. 
STRATEGIES AND OBJECTIVES 
Implementing the Port of Seattle stormwater utility supports the following Century Agenda
Goals and Green Port Principles: 
Implement stormwater-related policies and program that enhance the Port's economic
competitiveness (Century Agenda Green Port Principle #4) 
Meet or exceed agency requirements for stormwater leaving Port-owned or operated
facilities (Century Agenda Goal) 
Build partnerships that advance aquatic stewardship and promote the environmental
awareness of Port tenants 
Serve as a model of sustainable growth while enhancing water quality at the Port
(Century Agenda Green Port Principle #1) 
Allocate funds to those efforts that will yield the greatest environmental and water quality
benefits (Century Agenda Green Port Principle #2)

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
September 3, 2014 
Page 3 of 3 

FINANCIAL IMPLICATIONS 
In 2014, the Port and its tenants will pay an estimate $4.1 million to the City of Seattle in
stormwater fees. Once the Port stops paying the City the estimated $4 million per year, the Port
will be spending a similar sum to meet the obligations of the utility. At least initially, the costs
to the Port and our tenants will be little changed. 
TRIPLE BOTTOM LINE 
Economic Development 
Creates a funded, stormwater management program dedicated to the implementation of
projects on Port-owned property that will lead to reduction of pollutants to Puget Sound.
Stormwater fees to operate, maintain, and improve the Port's system will be directed into
programs to maintain and upgrade assets to help meet or exceed compliance
requirements. 
Environmental Responsibility 
Creates a funded stormwater management program dedicated to control surface runoff in
the urban environment to control and prevent water pollution to a level that meets or
exceeds regulatory criteria. 
Reliable funding source helps achieve water quality improvements faster. 
Community Benefits 
Communities around the Puget Sound will be able to directly benefit from cleaner water
and healthier environment. 
Preserve Port and Port Tenant competitiveness keeping working waterfront jobs in the
community. 
ATTACHMENTS TO THIS BRIEFING 
Stormwater Utility Public Briefing Presentation 
Port Commission Resolution No. 3696 
Port of Seattle Stormwater Utility Charter 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
June 3, 2014  Stormwater Issues Briefing