COMMISSION 
AGENDA MEMORANDUM                        Item No.          8c 
ACTION ITEM                            Date of Meeting      March 24, 2020 
DATE:     February 22, 2020 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Sandra Kilroy, Director, Maritime Environment & Sustainability 
Jon Sloan, Sr. Manager, Environmental Programs 
SUBJECT:  Interlocal Agreements to support Smith Cove Blue Carbon Monitoring Study 
Amount of this request:               N/A 
Total estimated project cost:           $250,000 
ACTION REQUESTED 
Request Commission authorization to execute Interlocal Agreements with the Washington State
Department of Ecology (Ecology) and Washington State Department of Natural Resources (DNR)
to support a three-year evaluation of carbon sequestration, water quality improvement, and
ecological productivity associated with the Smith Cove Blue Carbon Pilot Project.
EXECUTIVE SUMMARY 
The design and construction of the Smith Cove Blue Carbon Pilot Project was included in the 2018
Maritime Division expense budget. The port  subsequently  contracted with Puget Sound
Restoration Fund and Grette Associates to implement the work. The project work was completed,
and now in  ongoing  monitoring and  adaptive management. Subsequent to the project
authorization,  staff  was  approved  to  use  $250,000  in  previously  authorized  Energy  &
Sustainability Committee funding to support a long-term evaluation of project benefits. To that
end, staff proposes to engage Ecology and DNR to assist with data collection, analysis, reporting,
and public outreach. The partnership will require two separate interlocal agreements (ILAs) to
formalize the scope of work and financial relationship.
JUSTIFICATION 
Kelp and eelgrass have been widely recognized as keystone habitats for a wide range of fish and
wildlife species. Researchers have also begun to recognize that they are effective "carbon sinks," 
storing as much as a third-of-a-ton of carbon per acre per year. In that light, the Smith Cove Blue
Carbon Pilot Project was undertaken to make progress on Long Range Plan Objective 15, Priority
Action 4, "Optimize PORTfolio park and habitat restoration sites to sequester greenhouse gases
(GHG's)"; and, Objective 17, "Restore, create, and enhance 40 additional acres of habitat in the
Green/Duwamish Watershed and Elliott Bay." 

Template revised April 12, 2018.

COMMISSION AGENDA  Action Item No. _8c___                              Page 2 of 5 
Meeting Date: March 24, 2020 
The degree to which the project can be credited towards either of these two objectives, however,
is based on assumptions from the academic literature. To that end, a long-term data collection
and analysis effort has been developed. The effort will contribute to knowledge and expertise
applicable to kelp, eelgrass and shellfish restoration in urban environments, and confirm the
ability to make important water quality and habitat improvements in Elliott Bay. The Smith Cove
project will demonstrate the port's regional leadership in achieving balanced economic and
environmental benefits, while providing a case study for other agencies and interests to
implement similar blue carbon projects. 
DETAILS 
The Smith Cove Blue Carbon Pilot Project has specific habitat restoration elements that will be 
evaluated for carbon sequestration, water quality (specifically seawater acidification) benefits, 
and habitat productivity. These elements include bull kelp, eelgrass and Olympia oyster beds 
installed between 2018-2020. If approved, Port staff will work the Washington State 
Departments of Ecology (Ecology) and Natural Resources (DNR) to study and evaluate project 
effectiveness and benefits of the elements. 
The Interlocal Agreements (ILAs) that are required to formalize this arrangement will include 
the following provisions:
ILA with DNR: The Port will provide $163,500 in funding to support 50% of a Natural
Resource Scientist II position to assist with the Smith Cove study in collaboration with
Port staff. The DNR Scientist II will collect pH data, shellfish survival rates, and other
data for three years, as part of the Acidification Nearshore Monitoring Network 
(ANEMONE) program. The ANEMONE program includes nine study sites (including Smith
Cove) where pH measurements are being taken over time to measure the rate and
magnitude of seawater acidification in Puget Sound.
ILA with Ecology: The Port will provide $36,500 in funding to Ecology to support high-
level technical oversight, analysis, and participation by Dr. Micah Horwith, Washington
State's ocean acidification (OA) expert. Smith Cove will be integrated into his ongoing
ocean acidification monitoring program, including at least two vessel-based data
collection events. 
DNR and Ecology will create a Community-Based Science Plan to allow for participation
in the Smith Cove study by members of the Port's neighboring communities.The DNR
Scientist II will manage the community-based science program in collaboration with Port
Community Affairs staff. 


Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. _8c___                              Page 3 of 5 
Meeting Date: March 24, 2020 
Ecology data and ANEMONE program data will be combined and analyzed by Dr.
Horwith and the DNR Scientist II, who will collaborate to present findings to the Port and
community partners on an annual basis for three years.
At the end of the three-year study period, DNR and Ecology will produce a Final Report.
Depending on the results of this work, additional kelp, eelgrass and oyster restoration may be
promoted as a way to contribute to the Port's greenhouse reduction goals, reduce seawater
acidification, and provide habitat for imperiled species of fish and wildlife. 
Schedule 
The majority of pre-project baseline data collection occurred in 2017-2018. The development of
the long-term study plan occurred in collaboration with Ecology and DNR in 2019 and will be
updated upon approval of the ILAs. The proposed study will include limited additional baseline
data collection, followed by extensive monitoring over a three-year period.
Activity 
Commission approval  E&S Committee funds    Sept. 11, 2018 
Commission request  Ecology & DNR ILAs       March 25, 2020 
Additional kelp and oyster restoration            2020 
Year 1 monitoring                               2020 
Year 2 monitoring                               2021 
Year 3 monitoring                               2022 
Final report                                        2023 
Cost Breakdown                                      This Request           Total Project 
Study Plan/Design                                                $0                     $0 
Study implementation                                    $250,000              $250,000 
Total                                                            $250,000                $250,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1.  Engage consultants to undertake the study rather than Ecology and DNR. 
Cost:       >$360,000 
Pros:      Utilizes existing IDIQ contracts. 
Cons:      Exceeds authorized budget for study. 
This is not the recommended alternative 
Alternative 2. Engage UW researchers and students rather than Ecology and DNR.
Cost:       >$500,000 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. _8c___                              Page 4 of 5 
Meeting Date: March 24, 2020 
Pros:      Enhances port's relationship with UW. Scientific bandwidth of UW adds
credibility. 
Cons:     Cost is significantly higher than Ecology/DNR and exceeds authorized budget.
Also, effort is limited by constraints associated with school year and availability
of UW staff/students. 
This is not the recommended alternative 
Alternative 3. Execute ILA's with Ecology and DNR to undertake study.
Cost:       <$250,000 
Pros:       Engages public-agency partners that are already undertaking this type of work in
the area. Aligns with community-based science initiative getting underway at
DNR.
Cons:
This is the recommended alternative 
FINANCIAL IMPLICATIONS 
The Smith Cove Blue Carbon Pilot Project was funded for $295,000 in the 2017-18 Maritime
Division expense budget.  The Commission authorize use of an additional $250,000 in 2018 to
support the long-term study. No additional funding is being requested.
Cost Estimate/Authorization Summary               Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                          $0               $0               $0 
AUTHORIZATION 
Previous authorizations                                    0       $295,0001       $225,0002 
Current request for authorization                          0                0                0 
Total authorizations, including this request                  0                0        $515,000 
Remaining amount to be authorized                    $0             $0             $0 
1 Authorized in 2018 Maritime Division expense budget 
2 Included in Energy & Sustainability Committee funding authorization ($1m) 
Annual Budget Status and Source of Funds 
Funds from the Energy & Sustainability Committee needed to implement the ILAs are previously
authorized and will be allocated in the 2020-23 expense budgets. No funds are being requested
as part of this authorization. 


Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. _8c___                              Page 5 of 5 
Meeting Date: March 24, 2020 
Financial Analysis and Summary

Project cost for analysis              N/A 
Business Unit (BU)                  N/A 
Effect on business performance     N/A 
(NOI after depreciation) 
IRR/NPV (if relevant)                N/A 
CPE Impact                       N/A 
Future Revenues and Expenses (Total cost of ownership) 
N/A 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
(2)    Draft-Final Interlocal Agreements (ILAs) w/ Ecology and DNR 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
Sept. 11, 2018  The Commission moved to approve the Smith Cove Blue Carbon Pilot Project
as a recipient of Energy & Sustainability Committee funding 









Template revised September 22, 2016; format updates October 19, 2016.