INTERNAL AUDIT 

To:      Ryan Calkins, Commissioner 
Stephanie Bowman, Commissioner 
Chris Gehrke, Public Member 
From:   Glenn Fernandes, Director, Internal Audit 
Date:    May 7, 2020 
Subject: Interlocal Agreement (ILA) Mapping and Risk Ranking 
Background 
At the December 9, 2019, Audit Committee, Commissioner Calkins requested a listing of Port ILA's to
obtain a high-level understanding of how the deliverables are tracked and whether they are met. An
interlocal agreement is a written contract between local government agencies such as a city, a county, a
school board or a constitutional office. Any time a public service involves the joint operations and budgets
of two or more local government agencies, an ILA must be created and approved by all sides. 
The Revised Code of Washington 39.34.040 states: "Prior to its entry into force, an agreement made
pursuant to this chapter shall be filed with the county auditor or, alternatively, listed by subject on a
public agency's web site or other electronically retrievable public source." Commissioner Calkins request
was made to lay the ground work for perhaps an audit in 2021 and included the following deliverables: 
1)  A mapping of the responsible department to each ILA, and 
2)  A ranking by risk 
Approach 
Internal Audit (IA) obtained the listing of current ILA's from the Port's publicly facing source. The listing
contained 36 agreements. The Central Procurement Office provided hard copies of each agreement and
assisted IA in determining the responsible department. Risk was assessed using three criteria:
1)  Financial (weighted at 50%): A rating of one was assigned if the Port liability was less than
$1,000,000; a rating of two between $1,000,000 and $4,999,999; a rating of three greater than
$5,0000,000. 
2)  Legal (weighted at 30%): A rating of one for an agency to agency agreements; a rating of two if
the agreement was binding by state issued court order; a rating of three if the agreement was
binding by a federal court order. 
3)  Complexity (weighted at 20%): A rating of one was given if the ILA was advisory in nature or
required a study; a rating of two for construction related; a rating of three for environmental
cleanup of hazardous waste. 
Results 
Appendix A (below) lists the 36 ILA's, ranked from highest to lowest risk. We intend to incorporate this
analysis into our annual risk assessment when developing our 2021 audit plan. We will then select a
sample of ILA's which we will audit to assure compliance to stated deliverables. 

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Appendix A 
Compl
Financial   Legal     exity     Weighted
ILA                                                                  Initial Agreement           Risk        Rating    Rating    Overall
Number     Agency Name & Purpose          Port Department   Financial Liability ($)       (50%)     (30%)    (20%)    Risk Score 
I-00319477   US Environmental Protection        Sea-Port            Port to settle the cost of        2          3         3         2.5 
Agency - T108 Preliminary           Environmental       the assessment. 
Assessment                                          Penalty Clause; 
$ 1,000 per day for 1-14
days 
$ 2,500 per day for 15-30
days 
$ 5,000 per day 31st day
and beyond 
I-00318335   City of SeaTac  Des Moines Creek   Aviation Project     $12,713,548                    3          1         3         2.4 
Restoration Projects                  Management
Group 
I-00318544   WA State Department of Ecology -    Aviation            Reimbursement of actual       2          2         3         2.2 
Decree for Lora Lake Apartments     Environmental       costs 
Clean Up 
I-00316917   WA State Department of Ecology -    Maritime           Not specified. Port to           2          2         3         2.2 
Agreed Order for North T117         Environmental       reimburse actual costs 
I-00319353   City of SeaTac  Surface Water       Aviation            $29,000,000 for 10 years        3          1         2         2.2 
Management, Quality Assurance
and Community Relief 
I-00319798   City of SeaTac - Safe & Swift         External Relations   $15,000,000                    3          1         2         2.2 
Corridor Program focused on

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moving cargo, cars, transit and
cyclists safely and swiftly on city
streets 
I-00319797   City of SeaTac - S Lander St Grade    External Relations   $5,000,000                     3          1         2         2.2 
Separation Project - Construction
of a bridge on S Lander St 
I-00318935   City of SeaTac - Heavy Haul with     External Relations   $10,000,000                   3          1         2         2.2 
City of Seattle - Legislation of                                 $20,000,000 
heavy haul network 
I-00317352   US Environmental Protection        Maritime           All future response costs         2          3         1         2.1 
Agency - 117 EAA NTCRA           Environmental      Penalty Clause; 
Implementation                                       $ 1,000 per day for 1-7
days 
$ 2,000 per day for 8-14
days 
$ 3,500 per day 15-30
days 
$ 7,500 per day 31-90
days 
I-00320124   The Northwest Seaport Alliance -     SeaPort Economic   $ 3,826,498 annually            3          1         1          2 
Usage of Portion of Terminal 46      Development/Rea   (Contract Value =
l Estate                $88,000,000 for the 23
years) 
I-00317744   King County - Jail Service             Police Department   $1,700,000                     3          1         1          2 
I-00319841   City of Des Moines - Construct       Aviation Project     $1,500,000                     2          1         2         1.7 
transportation improvements to     Management
South 216th Street                   Group 
I-00319799   City of Kent - 228th St Grade         External Relations   $1,190,000                     2          1         2         1.7 
Separation 
I-00318903   City of Seattle - Storm Water Utility  SeaPort            $3,993,000                     2          1         2         1.7 
Operations                          Environmental 
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INTERNAL AUDIT 

I-00319556   Seattle Community College- Video   External Relations   $1,200,000                     2          1         1         1.5 
Services 
I-00318139   Us Army Corp of Engineers Seattle   Maritime           $1,500,000                     2          1         1         1.5 
District - Harbor Navigation           Environmental 
Improvement Study 
I-00317509   King County Emergency Med        Fire Department     $535,600                       1          1         2         1.2 
Service - Advanced Life Support
Ems 
I-00320147   King County Dept of Natural         Aviation            $42,000                        1          1         1          1 
Resources - Conduct services to      Environmental 
support the Port in conducting
activities for the Des Moines Creek
Basin Restoration project 
I-00320038   USDA APHIS FSO ACCTG SVCS -       Aviation            Goods or services on a          1          1         1          1 
conduct wildlife damage             Operations -         cost recovery basis 
management to minimize wildlife    Wildlife 
strike hazards to aircraft, threat to
human health and safety &
property damage 
I-00319680   King County Finance Division -        Human Resources   $380,642                       1          1         1          1 
2019 ORCA Program 
I-00320064   Washington State Dept of           Aviation Project     $400,000                       1          1         1          1 
Transportation - traffic study to       Management
evaluate practical solutions to        Group 
address traffic on SR 516 
I-00319557   Vancouver Fraser Port Authority -    Maritime           $16,845                        1          1         1          1 
Clean Air Strategy Review &          Environmental 
Update 
I-00319554   U S Dept of Homeland Security -      Aviation            As billed by CBP                1          1         1          1 
Support the joint reimbursable       Operations 
program at SEATAC as agreed in
the Reimbursable Services
Agreement 
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INTERNAL AUDIT 

I-00319300   City of Tukwila - Commute Trip      Aviation            $12,500                        1          1         1          1 
Reduction Program with Tukwila by  Environmental 
implementation of Transportation
Demand Management strategies 
I-00319655   The Northwest Seaport Alliance -     Maritime           $50,000                        1          1         1          1 
development of an information      Environmental 
database & report concerning
maritime sources of air emissions
throughout Puget Sound area 
I-00318619   Puget Sound Regional Fire           Fire Department     Labor rate of $101 per          1          1         1          1 
Authority - Fire Vehicle                                      hour subject to a limit of
Maintenance Services                                   $300,000 annually 
I-00318695   City of Seattle - Project Facilitation   Maritime           $230,000                       1          1         1          1 
Services                               Environmental 
I-00318730   The Northwest Seaport Alliance -     Maritime           The cost is as defined in         1          1         1          1 
POS/NSWA Staff Support Services    Environmental      the Exhibits (exhibits are
2016                                                 not available) 
I-00318338   WA State Dept Of Ecology - WCC     Aviation            $700,000                       1          1         1          1 
Natural Resources Projects           Environmental 
I-00317613   Highline Community College -        Economic           $30,000                        1          1         1          1 
Small Business Development        Development 
Center and Business Development
Services 
I-00316732   King County Dept of Natural         Aviation            Port to reimburse actual        1          1         1          1 
Resources - Surface Water           Environmental       costs 
Management Related Technical
Services 
I-00317973   US Federal Aviation Admin -          Aviation            $30,000                        1          1         1          1 
Reimbursement of Runway
Reconstruction 16c/34c 

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INTERNAL AUDIT 

I-00317767   WA State Dept Of Ecology - Water    Maritime           $641 per year                  1          1         1          1 
Quality Program Municipal          Environmental 
Stormwater Permits 
I-00317038   King County Finance Division Small   Economic           $12,900 per year               1          1         1          1 
Business Contractors and Suppliers   Development 
(SCS) Certification 
I-00316675   Port of Tacoma - Staffing            Maritime           Labor Rate of $109 per          1          1         1          1 
Resources                          Environmental      hour 
I-00318052   King County Finance Division         Maritime           $75,000                       1          1         1          1 
Environmental 

Category 
Score    Weighting
1. Financial Amount 
Below 1,000,000                                       1 
1,000,000-4,999,999                                    2         50% 
5,000,000 and Above                                   3 

2. Legal                                                 Score     Weighting
Mutual Agreement                                     1 
State Order                                               2         30% 
Court Order/Federal Order                                3 

3. Complexity                                       Score     Weighting
Studies, Advisory etc.                                       1 
Construction Projects                                      2          20% 
Environmental clean-up involving hazardous material      3 

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