COMMISSION 
AGENDA MEMORANDUM                        Item No.          10b 
ACTION ITEM                            Date of Meeting    September 14, 2021 
DATE:     August 27, 2021 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Jon Sloan, Interim Director, Maritime Environment & Sustainability 
Jane Dewell, Senior Manager, Marine Stormwater Utility 
Srini Pendikatla, Program Manager, Marine Stormwater Utility 
SUBJECT:  Adoption of 2022 Marine Stormwater Utility Rates 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to set 2022 Marine Stormwater
Utility rates with an increase of 4.6 percent. 
EXECUTIVE SUMMARY 
The requested authorization will provide a 2022 rate structure to be adopted by the Marine
Stormwater Utility (Utility), in support of Utility obligations to protect water quality, rehabilitate
Port of Seattle (Port) stormwater assets, and support property managers and tenants in
compliance with stormwater permit conditions. The proposed rate is a 4.6 percent increase
from 2021. This rate is  in line with the previous forecast  presented to commission on 
October 27, 2020. 
JUSTIFICATION 
A rate increase at the proposed level of 4.6 percent allows the Utility to improve water quality
to meet the Port's Century Agenda environmental goals by: 
1.  meeting all regulatory requirements; 
2.  investing in streamlining processes to improve efficiency and reduce costs of meeting
regulatory obligations; and 
3.  maintaining significant level of investment to rehabilitate the stormwater system and
increase the performance of the system to protect water quality in the Puget Sound.
DETAILS 
The Utility was formed in 2014 to enable the Port to provide services, facilities, systems, and
programs for surface water and stormwater management and pollution control. The Utility
collects stormwater fees from the Port of Seattle, Northwest Seaport Alliance (NWSA), and
tenants  and  reinvests  the  income  into  maintaining  and  upgrading  the  stormwater
infrastructure. Prior to creating the Utility, the stormwater fees paid by the Port and its tenants
to the City of Seattle (City) were used to address City priorities and not stormwater needs at

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 10b                                 Page 2 of 5 
Meeting Date: September 14, 2021 
Port facilities. Benefits of Utility work include water quality protection in the Puget Sound as
well as providing stormwater infrastructure that better supports Port tenants' stormwater
investments. 
The Utility rates apply to all Port-owned maritime (non-aviation) property, which includes land
managed by the NWSA. Tenants pay stormwater fees based on the area of their leaseholds. The
stormwater fees for the remaining unleased land at a facility are paid by the operating business.
The operating business is either the NWSA or the specific Port business (Economic
Development, Maritime Operations, Cruise, etc.) that oversees the unleased property. Rates
are set to recover the cost of operation and maintenance. 
The Port Utility rates continue to be on average 20-25 percent lower than the City stormwater
rates pending final adoption of City rates by the City Council later this year. 
The Utility rates are approved annually by the Commission. The Utility advisory committee
reviews and approves rate recommendations before final Commission approval. Projections last
year showed a need for a 4.6 percent increase in 2022 which is the recommended change. 
Scope of Work 
The Utility completed a full system assessment to obtain baseline conditions of the existing
stormwater infrastructure at the end of 2019. Over 60  urgent repairs of stormwater
infrastructure have been completed since 2016, reducing hazards and allowing the conveyance
system to function properly, which benefits overall water quality. Twenty-five tide gates have
been installed preventing the flow of tidal waters into the conveyance system, which is both a
safety and an infrastructure improvement. Other completed work includes administrative
efforts for policy creation, billing, and assisting tenants and Port business units to comply with
stormwater regulations. 
Several capital projects have been completed to replace poorly functioning stormwater
infrastructure and to purchase large equipment (e.g., closed-circuit television truck, vacuum
truck) that supports this work. In 2020, the Utility began work on a strategic plan, soliciting
feedback from internal Port and external tenant stakeholders, and hosting a two-day workshop
with 20 Port participants.  The Utility completed the strategic plan  in 2021 that is the
culmination of effort by staff, stakeholders and customers to establish a vision and mission for
the Utility to prioritize our work for the next five years This plan is intended to help better serve
customers and ensure a resilient Utility while supporting the Maritime industry. There are six
goals with 17 strategies each with specific tasks to support the guiding principles defined in the
mission and vision statements. 
The projected expense and capital budgets in 2022 total approximately $7 million, which will be
used to: 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 10b                                 Page 3 of 5 
Meeting Date: September 14, 2021 
Perform system assessments to monitor known conditions and be proactive in asset
management, i.e. monitor and repair before failure; 
Repair damaged stormwater pipes and infrastructure; 
Perform required regulatory stormwater management activities such as catch basin
inspections and sweeping; 
Perform additional stormwater management activities, that enhance water quality
protection, such as dock cleaning and plaza washing; 
Evaluate and implement innovations such as green stormwater infrastructure; 
Implement technology to support mobile field inspection solutions; 
Create dashboard for real-time data analysis of Stormwater Infrastructure Asset
Management System (SIAMS) 
Create scoring matrix including equity, diversity and inclusion considerations to
prioritize infrastructure work 
Implement year 2 of the strategic plan; 
Complete the current capital program portfolio  including  pipe rehabilitation and
drainage improvements; and 
Cover operational and administrative expenses including staff costs, utility taxes and
Port allocations. 
Rate Criteria 
The following criteria were used in considering the proposed 2022 rate: 
1.  Maintain adequate budget to meet all stormwater regulatory requirements and the
Port's Environmental Long-Range Plan and Utility Charter responsibilities including
rehabilitation of stormwater infrastructure. 
2.  Continue adequate funding to maintain and improve a high functioning stormwater
system to benefit the water quality of the Puget Sound. 
3.  Maintain  a  six-month  operations  and  maintenance  expense  reserve  for  financial
prudence consistent with Port policy and best practices. 
4.  Maintain consistent rate over the 5-year projection 
Schedule 
The Utility advisory committee reviewed and approved the rate recommendation in early
August  2021.  This  committee  consists  of  Port  and  NWSA  operations  leaders,  real
estate/property management leaders and Port finance leaders. The Utility does not explicitly
seek external  input, consistent with other public drainage utilities,  but relies on the
committee's expertise. The public notice for Commission approval effectively seeks public input
similar  to  the  City  Council  approval  process  for  municipal  utilities.  If  approved  by  the
Commission, the 2022 rates will be adopted by the Utility effective January 1, 2022. The Utility
will notify tenants of the upcoming rate change following adoption. Tenants can dispute billing

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 10b                                 Page 4 of 5 
Meeting Date: September 14, 2021 
fees at any time by contacting Utility staff. A decision will be made within 60 days of receipt of
the dispute. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Increase rates by 3 percent, the same rate change as for 2021 
Cost Implications: Projected revenue in 2022 will be $6.67M 
Pros: 
(1)   Lowest impact to tenants, NWSA and Port business units in 2022 than preferred 
alternative. 
(2)   Continue lower rate to support economic recovery. 
Cons: 
(1)   Higher average rate change path over the next five years compared to preferred
alternative, projecting an average of 5.2 percent, estimated at 6.5 percent between
2023 and 2025 and 3.5 percent in 2026 to meet increased capital spending in 2025. 
(2)   Not a consistent annual change which may make it more difficult for customers to
budget. 
This is not the recommended alternative. 
Alternative 2  Increase rates by 4.6 percent per 2020 forecast to Commission 
Cost Implications: Project revenue in 2022 will be $6.77M 
Pros: 
(1)   Lowest average rate change path over the next five years, projecting an average of 4.6 
percent, estimated at 4.6 percent annually through 2026. 
(2)   Steady projected rate change over the next five years, consistent with 2020 forecast,
allows customers to better plan for budget changes. 
Cons: 
(1)   Slightly  higher  fees  for  tenants,  NWSA  and  Port  business  units  in  2022  than
alternative. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
All revenue collected by the Utility is separate from the Port's general funds and must be spent
on or for the benefit of the Port stormwater system. The proposed rate increase has several
positive implications including: 
Maintain funding for critical stormwater infrastructure improvements, 
Build a six-month reserve as sound fiscal policy consistent with standard Port procedure, 
Reduce  operating  costs  funded  by  the  Port  by  funding  all  stormwater  related
maintenance activities from business units and select tenants, and 
Keep stormwater Utility rates lower than the City of Seattle. 

Template revised June 27, 2019 (Diversity in Contracting).


COMMISSION AGENDA  Action Item No. 10b                                 Page 5 of 5 
Meeting Date: September 14, 2021 

ADDITIONAL BACKGROUND 
The Utility maintains a separate accounting fund, known as the stormwater utility fund, to
conduct all business. This fund is separate from the Port general funds and cannot be used for
any purpose other than administering, operating, maintaining, and improving  the Port's
stormwater system. The Utility may borrow money from the Port funds as needed, provided
that such funds are paid back in full to the originating funds. 
ATTACHMENTS TO THIS REQUEST 
(1)   Marine Stormwater Utility Strategic Plan 2021-2025 
(2)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS [For information and examples, follow this link.] 
October 27, 2020  The Commission approved Marine Stormwater Utility Rates for 2021. 
October 8, 2019  The Commission approved Marine Stormwater Utility Rates for 2020. 
October 9, 2018  The Commission approved Marine Stormwater Utility Rates for 2019. 
November 14, 2017  The Commission approved Marine Stormwater Utility Rates for 2018. 
November 18, 2014  Commission approved Resolution No. 3696, as amended, Authorizing
Stormwater Utility Formation, included utility rates for 2015 through 2017. 










Template revised June 27, 2019 (Diversity in Contracting).