PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA                   Item No.        6b 
Date of Meeting     December 7, 2010 

DATE:      December 1, 2010 
TO:       Tay Yoshitani, Chief Executive Officer 
FROM:     Joe McWilliams, Managing Director, Real Estate Division 
Geri Poor, Manager, Regional Transportation 
Dan Burke, Regional Transportation Program Planner 
SUBJECT:   Interlocal Agreement with King County for Port participation in South
Park Bridge Replacement Project 
Estimated Value of this Interlocal Agreement: NTE $5,000,000 
Estimated Financial Participation: $4, 286,000           Source of Funds: Tax Levy 

ACTION REQUESTED:
Request Commission authorization for the Chief Executive Officer to execute an 
Interlocal Agreement (ILA) with King County, in substantially the form attached, in
connection with the South Park Bridge Replacement Project, including financial
participation and property easements in favor of King County over certain Port of Seattle
property with a total combined estimated value of $5,000,000. This action will commit
the payment of funds from the Port for the South Park Bridge in 2012 and 2013. 
SYNOPSIS:
King County has requested Port participation in a funding partnership for the
reconstruction of a replacement South Park Bridge as outlined in the ILA. The
partnership to fund the construction portion of the bridge includes federal, state, regional
and local partners, totaling $133,158,000, as shown in Exhibit E. The Port's share is $5
million, combined in a financial contribution of $4,286,000 and property value granted
through easements. The Port's financial participation is structured in two payments at
50% and 100% of construction completion, estimated in 2012 and 2013. The agreement
includes a provision to reduce the Port's share if construction costs are ultimately lower
than estimated, subject to other agencies' agreements.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 7, 2010December 6, 2010 
Page 2 of 4 
BACKGROUND: 
The South Park Bridge was closed permanently on June 30, 2010 due to its deteriorating
condition. For 78 years, the span had served an important role in our region's
multimodal freight transportation system, providing freight access in the Duwamish
industrial area and a key transportation link for the South Park community. 
Although the bridge's structural problems were well-known, the county lacked the
financial resources to fund the replacement of the span. In earlier discussions, the port
had offered contributions of property and aquatic easements near the bridge. 
In June 2010, County Executive Dow Constantine requested a $5 million contribution
from the Port of Seattle, as part of a broad coalition of regional funding partners. 
At the June 22, 2010 Commission meeting, a majority of Port Commissioners expressed
their intent to commit $5 million toward the bridge's replacement, subject to the Port's
budget process this year. In support of the request, commissioners cited the significance
of the bridge to the regional freight system and to the South Park community. Following
the bridge closure, traffic was diverted to regional and interstate facilities serving the Port
of Seattle (such as I-5, SR-509/599, and East Marginal Way), as well as the Duwamish
industrial area, and the South Park and Georgetown communities. 
On July 13, 2010, the Port Commission authorized granting several Port property
easements to the county which are needed for the bridge construction and permanent
footings. These include a permanent aquatic easement; a temporary restoration easement; 
and a temporary construction easement. The value of these easements is $714,000 and is
included as a part of the $5 million contribution. 
Throughout the summer, the county continued to seek funding for a replacement bridge.
On October 15, the bridge replacement was assured with the federal government's
announcement of the award of $34 million in TIGER II stimulus funds for the project.
The total funding package includes participation from the Port of Seattle; Washington
State Department of Transportation; the Transportation Improvement Board; the Freight
Mobility Strategic Investment Board; the Puget Sound Regional Council; the City of
Seattle; the City of Tukwila; and the Boeing Company; as well as King County and the
federal government. 
One of the Port's primary goals is to create jobs and economic growth in an
environmentally responsible way. Maintaining a transportation system that supports
freight mobility, expands international trade, and keeps our region, state and country
competitive in the global marketplace is a key priority. The South Park Bridge was a
heavily used link in the regional transportation system, and the loss of the bridge
threatens industrial jobs, causes increased traffic congestion and vehicle emissions, and
limits mobility in a disadvantaged community.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 7, 2010December 6, 2010 
Page 3 of 4 
The county is proceeding with necessary activities to begin construction as early as
possible in 2011. 
This proposed ILA defines the roles of the Port and County, and timing and conditions of
financial participation. 
FINANCIAL ANALYSIS: 
Source of Funds 
Funding is included in the 2011 Plan of Finance in the Transportation and Infrastructure
Fund, with cash flow expenditures in 2012 and 2013. The expenditure will be accounted
for as a non-operating expense and the source of funds is the tax levy. 
Financial Analysis Summary 
CIP Category            Regional Transportation 
Project Type             Freight Mobility 
Risk adjusted discount   NA 
rate 
Risk factors               A potential risk factor is that the delivered bridge
replacement would not provide the expected direct benefit to
the Port. This risk is mitigated by the fact that all decisions
regarding the functionality of the projects have already been
made. The Agreement requires that the county collaborate
with the Port on any design changes that affect the Port's
anticipated benefit. If the Port's anticipated benefit is reduced
by these changes, and the parties cannot agree on a
resolution, the Port has the option to terminate the Agreement
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)       Real Estate 
Effect on business        Spending on this project will be expensed as incurred, as a
performance            non-operating expense over the two years of construction
and/or implementation.
IRR/NPV             N/A 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1: Do not approve ILA and request from King County. This action is
inconsistent with Commission discussion of June 22 and the easement authorization of
July 13. Further, it could upset the multiagency funding partnership and could delay or
prevent the replacement bridge construction. Given the need, the public benefit and
earlier favorable support for the project, this is not the recommended alternative.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 7, 2010December 6, 2010 
Page 4 of 4 
Alternative 2: Authorize the CEO to execute an ILA with King County on the South
Park Bridge Replacement Project, in substantially the form attached, which includes the
Port's financial participation and property easements with a total value of $5,000,000.
This is the recommended alternative. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Draft Interlocal Agreement with Exhibits A, B, C, D and E 
Power Point presentation 
PREVIOUS COMMISSION ACTION: 
June 22, 2010, Commission discussed general intent to commit $5 million to the South
Park Bridge, subject to the Port's budget process later this year. 
July 13, 2010, Commission authorized granting property easements to the County, of Port
real property needed for construction and permanent footings: a permanent aquatic
easement, temporary restoration easement, and temporary construction easement. The
value of these easements is $714,000 and is included as a part of the $5 million
contribution.