PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6d 
ACTION ITEM 
Date of Meeting    November 25, 2014 
DATE:     November 18, 2014 
TO:       Ted Fick, Chief Executive Officer 
FROM:    Ralph Graves, Acting Director, Stormwater Utility 
Stephanie Jones Stebbins, Director Seaport Environmental & Planning 
Marilyn Guthrie, Stormwater Program Manager 
SUBJECT:   Second Reading of Resolution No. 3696, as amended, Authorizing Stormwater
Utility Formation 
ACTION REQUESTED 
Request Second Reading of Resolution No 3696, as amended:  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 Washington 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
estimated $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

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 18, 2014 
Page 2 of 4 
jurisdictions, the Director can negotiate agreements with other jurisdictions about management
of stormwater systems and payment of stormwater fees.
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 and
the need to maintain and upgrade Port infrastructure, as well as comply with programmatic
requirements. The Port has harbor wide stormwater costs to the Port and our tenants 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 for reimbursement of funds to the Port 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 previous briefings, the detailed background and history of  stormwater  fees have been
presented. On September 11, 2014, the Commission had the First Reading of Resolution 3696,
heard testimony on whether to authorize the Stormwater Utility, and voted to move the
Resolution to Second Reading. 
Since First Reading, the Port staff has continued discussions with both the City of Seattle and the
City of Sea-Tac. The Port has reached an agreement in principle with the City of Seattle, under
which the Port intends reimburse the City for the fees it would have collected in 2015 had it not
been displaced by the Port Utility. In exchange, the City intends to assist the Port with the
transition process by addressing such issues as jurisdictional boundaries, ownership and
maintenance of infrastructure, and clarifying tax issues, and intends to waive any legal claims
regarding the Port's creation of the Stormwater Utility. This agreement in principle will be
formalized in a written Memorandum of Agreement during the 2nd quarter of 2015.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 18, 2014 
Page 3 of 4 
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) 
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 Port 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

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 18, 2014 
Page 4 of 4 
Port Commission Resolution No. 3696 as amended with redline 
Port Commission Resolution No. 3695 as amended 
Port of Seattle Stormwater Utility Charter with redlines 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
June 3, 2014  Stormwater Issues Briefing 
September 11, 2014  First Reading of Resolution 3696