PORT OF SEATTLE 
MEMORANDUM 

COMMISSION AGENDA                   Item No.         6a 
Date of Meeting       April 6, 2010 
DATE:      March 31, 2010 
TO:         Tay Yoshitani, Chief Executive Officer 
FROM:     Christine Wolf, Regional Transportation Program Planner, Seaport 
SUBJECT:   Interlocal Agreement with the City of Seattle concerning the Spokane Street
Widening Project, a FAST Corridor Phase 1 project. (CIP # C001725) 
Amount of This Request: $3,400,000 (net)             Source of Funds: Tax Levy 
State and Local Taxes Paid:                            Est. Workers Employed: 
Up to 775 for the entire project 
ACTION REQUESTED:
Request authorization for the Chief Executive Officer to execute an Interlocal Agreement (IA),
substantially as drafted, with the City of Seattle (City), obligating the Port to pay the City
$3,400,000 (net), plus Port staff and consulting resources, for the Spokane Street Widening
Project (Project), a Freight Action Strategy for the Everett-Seattle-Tacoma (FAST) Corridor
Phase 1 project. 
SYNOPSIS: 
Since 1998, the FAST Partnership, a coalition of public and private entities that includes the Port
of Seattle, has leveraged over $790 million in public and private funds for strategic freight
mobility infrastructure projects in the Everett to Tacoma corridor. The Spokane Street Widening
Project is one of FAST's initial projects. The requested contribution of $3,400,000 (net) would
close a final funding gap and enable the City to improve the primary east-west corridor linking
the Port's largest container terminals to I-5, I-90, and the Seattle International Gateway rail yard,
increasing traffic flow and safety for two out of three drayage truck trips serving the Port. In
addition to creating up to 775 new construction jobs, the Spokane Street Project will help to
preserve 70,000 jobs and support the addition of 5,000 new industrial jobs. The Project also
comprises a complementary system upgrade for the Alaskan Way Replacement Program, and the
Port's support of the Project counts toward the Port's contribution to that program. The source
of the funding for this project is the tax levy. 
BACKGROUND: 
The FAST Corridor public-private partnership, which includes federal and state agencies, local
cities and counties, private partners, and the Ports of Seattle, Tacoma and Everett, was

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
March 31, 2010 
Page 2 of 5 
established to move needed goods and support port operations on the highways and rail lines that
sustain maritime international trade along the rail corridor from Tacoma to Everett. To date, the
Partnership has completed 11 of 25 projects, leveraging over $ 790 million in contributions to 
facilitate the movement of freight, reduce conflicts between freight and general traffic, and
improve emergency response times by removing rail-vehicle conflicts. The Port has been a
partner since FAST's inception, and to date, has contributed over $31 million to various projects
in the corridor. Funding for the Project would increase the Port's support of FAST to over $34.5
million. Closing the final funding gap for the Project also shows the Port's continued
commitment to its FAST partners to complete the FAST Corridor. 
The Project, which improves the primary east-west corridor for Port related truck traffic in the
Duwamish, will provide substantial benefits to the Port, including: New access to surface streets
from the upper Spokane roadway; reduced delays on the lower Spokane roadway at railroad
tracks; reduced conflicts between rail and vehicle traffic modes; enhanced freight mobility;
including access to the Port's terminals; and improved safety and traffic flow for all travel
modes. In addition to improving the Spokane Street Viaduct, the Project will resurface lower
Spokane Street, which is heavily used by trucks serving the Port's Terminals 5 and 18. 
Executing the IA at the requested level of contribution will allow this project to be completed.
This will help keep the FAST Corridor Program alive and support future federal and state
funding requests from the sponsors of the remaining projects. This approach would leave
sufficient Port funds allocated to the FAST Corridor program to allow the Port to contribute to
those projects that are getting close to implementation. 
PROJECT SCOPE AND SCHEDULE: 
The Project will add an eastbound off-ramp at Fourth Avenue South and an eastbound lane
between SR 99 and Fourth Avenue South, and relocate the westbound on- and off-ramps from
their current location on Fourth Avenue South to First Avenue South. In addition, the upper
roadway will be widened by 41 feet between Sixth Avenue South and East Marginal Way,
making space for a new westbound acceleration-deceleration lane, a permanent median, and
wider lanes and shoulders. The lower roadway will be rebuilt in concrete in both directions. 
The Project was advertised on May 15, 2009, and construction was started in the 4th quarter of 
2009. Construction completion is scheduled for the 2nd quarter of 2012. 
PROJECT FUNDING COORDINATION WITH THE PROJECT PARTNER: 
The Port, through the FAST MOU, agreed to contribute $5,000,000 towards the construction of
this Project. The City of Seattle, through the FAST MOU, agreed to contribute $1,600,000 to the
construction of the Port's East Marginal Way Grade Separation Project. Both projects are being
constructed in close proximity to each other and at about the same time. The payments that each
of the parties has committed to paying to each other would be processed most efficiently if the
Port paid to the City the net difference between the $1,600,000 committed by the City for the
East Marginal Way Grade Separation Project and the $5,000,000 that the Port has committed for
the Project, which means that the Port would pay the City $3,400,000 net. This is the approach
recommended by staff.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
March 31, 2010 
Page 3 of 5 
The proposed IA further details the approach to making payments to the Project. The Port would
contribute two lump sum payments of $1,700,000 each, with the first payment occurring at about
the half point of construction at the end of the 1st quarter of 2011, and the second payment after 
substantive completion of the Project at the end of the 2nd quarter of 2012. (While the first
payment is not scheduled until 2011, we generally try to formalize contributions before, or early,
during constructionthis project is under construction.) 
PARTICIPATION IN THE ALASKAN WAY VIADUCT REPLACEMENT PROGRAM: 
In addition, the Spokane Street Widening Project is one of the projects providing complementary
system upgrades as part of the Alaskan Way Viaduct Replacement Program. The Port's
contribution to this Project is included as one of the provisions of the Memorandum of
Agreement (MOA) between the Port and the Washington State Department of Transportation 
(WSDOT) which the Commission approved on February 9, 2010. The MOA with WSDOT
counts the Port's contribution to the Spokane Street Widening Project as part of its $300 million
commitment to the Alaskan Way Viaduct Replacement Program. 
ENVIRONMENTAL SUSTAINABILITY/COMMUNITY BENEFITS: 
Completion of the Spokane Street Widening Project will generate a range of benefits along the
corridor by: 
Keeping freight moving. About 66% of the truck trips generated by the Port of Seattle use
the Spokane Street corridor. The Project improves the ability of the corridor to handle
growing truck operations. 
Providing congestion relief during major construction. An improved Spokane Street
Viaduct will enhance access to alternative routes for traffic before, during, and after
construction of the Alaskan Way Viaduct replacement. 
Reducing delays. The new east-bound off-ramp at Fourth Avenue South will separate east-
bound trucks, busses, and cars from three BNSF rail crossings, helping to minimize
intermodal conflicts. 
Improving safety. A widened structure will allow new shoulders and a permanent median
barrier will improve safety (and will minimize congestion should a collision occur). 
Adding options to driving. The lower roadway will be completely rebuilt, adding a wide
sidewalk and bike path along the north side, and a connection from the E-3 Busway to the
East Marginal Way Trail. 
Making way-finding easier. New west-bound on- and off-ramps at First Avenue South will
provide drivers better connections with the Duwamish area. It will also provide more
merging space for drivers who exit I-5 and use the new off-ramp to access the Duwamish
area. 
Improving air quality. The improved traffic flow will reduce vehicle idling times and air
emissions from trucks and cars 
Keeping buses moving. An east-bound transit lane can be extended from First Avenue
South to a new off-ramp at Fourth Avenue South, improving access to the E-3 Busway and

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
March 31, 2010 
Page 4 of 5 
allowing for a continuous transit connection between West Seattle and the Seattle Central
Business District. 
FINANCIAL ANALYIS: 
Project Cost Breakdown 
Spokane Street Widening Project                                        $5,000,000 
Port staff resources and expenses*                                             $2,500 
Less: Offset for City committed contribution to East Marginal           ($1,600,000) 
Way Grade Separation Project 
Net Project Cost                                                          $3,402,500 
Note*: Resources will be provided by existing Port staff. Accordingly, there is no incremental cash outflow to the Port in 
connection with providing these services. However, limited consultant assistance may be required to support the staff effort. 
Source of Funds 
The 2010 Plan of Finance includes $3,400,000 under committed CIP #C001725, FAST Corridor
1, for the Spokane Street Widening Project, and took into account the $1,600,000 reduction in
funding from the City for the East Marginal Way Grade Separation Project. The funding source
for this agreement will be the tax levy. 
Financial Analysis Summary 
CIP Category                 Regional Transportation 
Project Type                   Freight Mobility 
Risk adjusted discount rate     NA 
Risk factors                     A potential risk factor is that the delivered project does
not provide the expected direct benefit to the Port. This
risk is mitigated by the fact that all decisions regarding
the functionality of the project have already been made
and because the IA requires the City of Seattle to
collaborate with the Port on any design changes that
impact the Port's expected benefit. In the event the
Port's expected benefits are reduced by these changes,
and the parties cannot agree on a resolution, the Port has
the option to terminate the IA and would not be required
to pay for any construction work it has not approved and
that has not been completed. 
Project cost for analysis         NA 
Business Unit (BU)             Seaport Planning 
Effect on business              Spending on this project will be expensed as incurred, as
performance                 a non-operating expense over the two years of
construction. 
IRR/NPV                  N/A

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
March 31, 2010 
Page 5 of 5 
ALTERNATIVES CONSIDERED/RECOMMENDED ACTION: 
Two alternatives were considered: 
1.  Do Nothing: Should the Port not participate in the agreement, the project would have
insufficient funds to be completed on schedule. 
The proposed agreement with WSDOT regarding the Port's contribution to the Alaskan
Way Viaduct Replacement Program is in part based on this agreement. Not signing this
agreement would be contrary to the spirit and intent of the agreement regarding the
Alaskan Way Viaduct Replacement Program. Without it, portions of the Port's agreement
with the Washington State Department of Transportation may have to be renegotiated. 
2.  Agreement: This alternative supports the FAST Corridor program and the
agreement with WSDOT regarding the Port's contribution to the Alaskan Way
Viaduct Replacement Program. It is the recommended action. The City of Seattle and
the Port of Seattle would enter into an agreement for the Port to provide a funding share
of $3,400,000 for the Spokane Street Widening Project. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Interlocal Agreement with attachments, dated March 17, 2010. 
Resolution No. 3500, dated January 28, 2003. 
PowerPoint slide presentation, Port Staff, dated April 6, 2010. 
PowerPoint slide presentation, Seattle Department of Transportation, undated. 
PREVIOUS COMMISSION ACTION: 
On July 14, 1998, by Resolution No. 3283, the Commission authorized participation in the FAST
Corridor. 
On January 28, 2003, by Resolution No. 3500, the Commission authorized participation in the
FAST Corridor Phase 2. 
On February 9, 2010, the Commission made a motion supporting Port participation in the Alaskan
Way Viaduct/Seawall Replacement Program.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
March 31, 2010 
Page 6 of 6 
Attachment 1: