3a

PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      3a 
STAFF BRIEFING 
Date of Meeting    February 10, 2015 
DATE:    January 22, 2015 
TO:     Ted Fick, Chief Executive Officer 
FROM:    Kurt Beckett, Deputy Chief Executive Officer 
Mike Merritt, Manager, Puget Sound/Washington Government Relations 
Geraldine Poor, Regional Transportation Manager 
SUBJECT:  Commission Briefing on SR-99 Alaskan Way  Viaduct Replacement 
Program and Alaskan Way street reconstruction 
SYNOPSIS 
The Washington State Department of Transportation will provide a briefing to the Port
Commission on the status of the Alaskan Way Viaduct Replacement Program. The
Seattle Department of Transportation will brief the Commission on the status of the
design of the future Alaskan Way surface street along the central waterfront. 
BACKGROUND 
On August 6, 2013, the Port Commission approved a funding agreement with
Washington State to support the Alaskan Way Viaduct Replacement Program. 
The funding agreement committed the Port to payment toward the SR-99 bored tunnel
and the north and south portal projects in the amounts of $120 million on May 1, 2015,
and $147.7 million on May 1, 2016, for a total of $267.7 million. This is in addition to
payments on related projects totaling $25 million and in-kind Port contributions valued at
$7.3 million. 
Under the replacement program, the State will move SR-99 into a bored tunnel beneath
downtown, reconnect the street grid at the tunnel portals and remove the viaduct along
the waterfront. The State is responsible for managing this project and the related
environmental review. The Port and its tenant have supported construction activities by
providing temporary construction easements on Terminal 46 throughout much of the
project duration. The City of Seattle (City) is constructing a new Alaskan Way roadway
funded by the State, building new public open space along the waterfront once the
viaduct is removed, improving other city streets, and replacing the central seawall. 
In 2009 the Washington State Legislature approved the deep-bore tunnel concept for the
replacement of the viaduct. The State's maximum contribution for the Alaskan Way 

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 22, 2015 
Page 2 of 6 
Viaduct replacement was limited to $2.4 billion, with up to $400 million financed with toll
revenue, for a total of $2.8 billion. The amount to be funded through toll revenue
subsequently was reduced to $200 million. 
In January 2011, the State executed a design-build contract with Seattle Tunnel Partners
for the design and construction of the SR-99 Bored Tunnel Project as a replacement for
the Alaskan Way Viaduct. 
Since that time, WSDOT has made significant progress on key aspects including: 
Demolition of the south end of the Viaduct and routing of traffic on a new
temporary SR-99 route 
Completion of a rail overpass that provides a connection from I-5 and/or I-90 to
the waterfront and Port facilities 
Design and construction of north and south portals and connecting roadways 
Construction of the operations building and tunnel systems 
Ensuring Port participation in construction planning and implementation 
Incorporating Port review and comments in roadway channelization plans 
Completion of the deep-bore tunnel was halted in December 2013 due to damage
sustained by the boring machine after mining about 1,000 feet, or about 10 percent of the
total tunnel length. The tunnel contractor, STP, is now engaged in a project to repair the
boring machine by excavating a shaft to access the machine and lifting the cutting head
and other components to the surface. Damaged elements of the machine will be repaired
and replaced, and tunneling will recommence. STP is now forecasting that the tunnel
will be open for traffic in September 2017. 
As the state's Alaskan Way Viaduct Replacement Program is underway, the City of
Seattle is developing its design for the new surface Alaskan Way that will be located
within the footprint of the Viaduct after its demolition. Washington State is providing the
City with the funds for the surface street. 
The Port's funding agreement with the State contains specific conditions related to the
surface street including the number of lanes to ensure the movement of freight and other
traffic. The Port is working with the City and State on some remaining issues with the
City's design: 
Truck and labor access to Terminal and Pier 46 north driveways 
Improvements for landside access to Pier 66 cruise terminal 
Accommodations for freight and cruise traffic at a new Pine Street intersection
with Alaskan Way 
Access for pedestrians and Port maintenance crews between the Lenora St.
pedestrian overpass and a new Elliott-Western connector

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 22, 2015 
Page 3 of 6 

PORT OBJECTIVES 
The Port of Seattle supports the replacement of the Alaskan Way Viaduct with the 
bored tunnel and related system improvements, as this design best affords essential 
transportation capacity, provides  significant environmental benefits, and minimizes 
construction related disruption on the  waterfront. If the Viaduct were not replaced,
the Port would not realize these benefits and would face traffic congestion seriously
impeding freight movement to Port terminals and the city's industrial areas and
passenger movement to Seattle-Tacoma International Airport and the cruise terminals. 
The central waterfront section of the viaduct is a critical north-south transportation 
facility of  regional, state, and national significance, and one of two limited access 
routes through Seattle's urban core carrying more than 100,000 vehicles daily. The 
SR-99 corridor is crucial to the  region's freight mobility because it provides for 
1.5  million  freight  trips  annually  by  grade-separation of through-traffic, rail lines 
and  industrial  corridors  near  the  Port's  marine  terminals,  which  support  the 
movement of $30 billion in cargo value through the Port each year. It also supports
freight mobility within Seattle for a broad range of commercial and residential needs. 
The Port's highest priorities for an Alaskan Way Viaduct Replacement Program are to: 
Provide sufficient capacity and functionality to move freight traffic efficiently. 
Maintain and improve access to our cargo, commercial fishing, and cruise 
facilities and Sea-Tac  Airport. 
Minimize construction disruption affecting access to the Port's cargo, fishing, 
and cruise facilities. 
Scope of Agreement 
The State's responsibilities, as outlined in the funding agreement, are to ensure that 
the program ultimately facilitates efficient movement of freight and other traffic in 
the  tunnel  and  on  the  waterfront segment of the surface road. Further, the State 
ensures the following: 
Environmental documentation is complete. 
The design maintains access to fishing, cruise, and other Port facilities. 
Project design is consistent with State and Port needs and provides the Port 
with the direct benefit committed to by the State. 
There are provisions for the Port to review and comment on roadway
channelization plans. 
The Port is a participant in construction maintenance of traffic task forces. 
Project costs funded by Port-issued bonds meet the requirements for use of 
tax-exempt  bond proceeds.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 22, 2015 
Page 4 of 6 
On October 28, 2014, staff presented the draft plan of finance for 2015-2019. This
included the issuance of General Obligation (G.O.) bonds in 2015 to fund the first Port
installment of $120 million. Per the State's responsibility, the Port's bond-funded costs
must meet the requirements of the Internal Revenue Service for tax-exempt bonds. The
State will allocate to the Port's payment costs for construction of the deep bore tunnel,
excluding non-permanent items that are expected to change use, e.g. acquisition of
staging properties and the tunnel boring machine. For this payment, the state's invoice
covers expenditures for construction of physical assets for the time period from mid-
2013 through mid-2014. Staff will present the details of the bond issue and a request for
first reading of a bond resolution on February 24, 2015. 
ATTACHMENTS TO THIS BRIEFING 
Computer slide presentation. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
On September 10, 2013, City staff and Waterfront Advisory Committee cochair
briefed the Port Commission on the redevelopment of Seattle's Central
Waterfront and replacement of the Elliott Bay Seawall. The discussion focused
on plans and funding proposals for new public spaces and other improvements;
the reconstruction of Alaskan Way surface street and Elliott-Western connector;
and the first phase of seawall reconstruction. 
On August 6, 2013, the Port Commission adopted a motion to direct and
authorize the Port's Chief Executive Officer to execute a funding agreement
with the State of Washington in substantially the form attached as Exhibit A,
providing Port participation in the Alaskan Way Viaduct Replacement Program
consisting of the SR-99 Tunnel Alternative, the SR-99 South Access
Connection Project, and the SR-99 North Access Construction Project, and to
authorize expenditure of $275,000,000 in accordance with the terms of the
funding agreement. 
On November 6, 2012, Port staff presented follow-up information on the tax
levy discussion held on October 23, 2012, including the Alaskan Way Viaduct
Replacement Program. 
On October 23, 2012, the Tax Levy presentation included funding projections for
the Port's contribution to the Alaskan Way Viaduct Replacement Program. 
On March 13, 2012, the Commission held a policy roundtable to discuss
regional transportation issues, including the Alaskan Way Viaduct Replacement
Program, the Port's transportation investments and freight flows supporting the
waterfront and industrial business.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 22, 2015 
Page 5 of 6 

On February 28, 2012, the Commission authorized a Possession and Use
Agreement with WSDOT and Total Terminals International LLC at Terminal
46 as one of the "Moving Forward" projects associated with the Alaskan Way
Viaduct Replacement Program. Public comment was also taken. 
On May 10, 2011, WSDOT and SDOT representatives briefed the Commission
on the progress of the Alaskan Way Viaduct Replacement Program and
associated projects of interest to the Port, its tenants, and stakeholders. Public
comment was also taken. 
On November 2, 2010, Port staff and WSDOT and SDOT representatives
updated the Commission on the Alaskan Way Viaduct Replacement Program
and the Supplemental Draft Environmental Impact Statement. 
On February 9, 2010, the Commission adopted a motion to direct and authorize
the Port's CEO to execute the Memorandum of Agreement with the State of
Washington affirming Port participation not to exceed $300 million in the
Alaskan Way Viaduct Replacement Program, if and to the extent that, the Port
of Seattle Commission authorizes funds for these purposes. Public comment
was also taken. 
On February 2, 2010, Port staff briefed the Commission on the proposed
Memorandum of Agreement with the State of Washington outlining the Port's
potential financial participation not to exceed $300 million in the Alaskan Way
Viaduct Replacement Program. Public comment was also taken. 
On January 12, 2010, the Commission hosted a policy roundtable to discuss the
Viaduct Replacement Program with Port customers and stakeholders and noted
that a draft Memorandum of Agreement with the State of Washington is
expected to be ready for consideration in early February. 
On January 5, 2010, Port staff and the WSDOT and SDOT Alaskan Way
Viaduct program team representatives presented an update on project design,
early action construction and stakeholder involvement, and project benefits and
areas of concern for the Port. The State requested a Memorandum of
Understanding to memorialize the Port's support for the program, including Port
participation not to exceed $300 million. 
On March 10, 2009, the WSDOT and SDOT Viaduct program team briefed the
Commission on the Bored Tunnel Hybrid, particularly with regard to the north
portal and freight connections. After the briefing, the Commission also hosted a

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 22, 2015 
Page 6 of 6 
Policy Roundtable with key Port customers and stakeholders to discuss the
Viaduct Replacement Program. 
On January 27, 2009, Port staff reviewed Viaduct replacement program issues
as developed by WSDOT and benefits for the Port, freight mobility and the
regional system. Public comment was also taken. 
On January 6, 2009, Port staff updated the Commission on developments since
the December 15, 2008, motion, including Stakeholder Advisory Committee
support and the anticipated process for the final recommendation. 
On December 15, 2008, the Commission adopted a motion recommending to
the State, City, and County that a Subsurface Hybrid option be retained for
further study as part of the Viaduct and Seawall Replacement Program. Public
comment was also taken. 
On December 9, 2008, the Commission reviewed and commented about the
scenarios' performance in meeting the guiding principles and measures to the
WSDOT, SDOT and King County program team. 
On December 2, 2008, Speaker of the House Frank Chopp provided a slide
presentation to the Commission of his concept to replace the Viaduct. 
On August 5, 2008, the Washington State Department of Transportation
(WSDOT) and the Seattle Department of Transportation (SDOT) program team
presented the guiding principles and measures, and eight hybrid scenarios for
Commission review and discussion. Port staff summarized discussions with the
program team, including the Commission's consistent statements about our
overarching tenets to maintain or enhance system functionality, complementary
system upgrades, freight mobility, access to Port and other waterfront properties
(including provision for growth in business activity) and the seawall's function.
These tenets must be met both in the final design concept and with regard to
construction impacts. 
On August 9, 2007, the Commission reviewed and commented on the six
Moving Forward projects and an overview of the central waterfront
Collaborative Process. This was an extension of the articulation of the Port's
business concerns that the Port CEO had expressed to the Mayor, the Governor
and the King County Executive after the March 2007 announcement of the
Collaborative Process. Those concerns were: maintaining system capacity,
freight mobility and access to waterfront businesses, replacing the seawall and
construction planning to mitigate traffic impacts and enable Port tenants and
other private businesses to continue to operate. Public comment was also taken.

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