PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      5e 
ACTION ITEM 
Date of Meeting    December 10, 2013 
DATE:     November 22, 2013 
TO:       Tay Yoshitani, Chief Executive Officer 
FROM:    Kurt Beckett, Deputy Chief Executive Officer 
Michael Tong, Corporate Budget Manager 
SUBJECT:  Interlocal agreement with the Port of Tacoma to conduct a joint economic impact
study 

Amount of This Request:    $200,000        Source of Funds: Expense Budget 
Est. Total Project Cost:      $200,000 

ACTION REQUESTED 
Request authorization for the Chief Executive Officer to execute an interlocal agreement with the
Port of Tacoma and all other documents needed to conduct a joint economic impact study in an
amount not to exceed $200,000. 
SYNOPSIS 
The Port of Seattle (POS) and the Port of Tacoma (POT) are working collaboratively to conduct
a joint economic impact study to assess areas of economic impact generated by the two ports in
the Puget Sound region and in the State of Washington. Staff is soliciting proposals from firms
interested in conducting a comprehensive analysis of the economic impacts derived by the
activities related to each port.  The report would include individual sections that analyze the
impacts of each port within its specific county, the Puget Sound region, and the State of
Washington. Additionally, the study would assess areas of shared economic impact in the Puget
Sound region and the State of Washington.
The results of the economic impact analysis will be used in a variety of ways to advance the
individual and shared work of each port. The  results of this study will serve as the foundation
for communication with the general public, media, and elected officials about the critical role of
the POS and the POT in our state's trade economy.  Additionally, this information will inform
business proposals, grant requests, permit submissions, etc.  It is imperative that the
methodology used in this study is transparent, sound and consistent with past studies. 


Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 22, 2013 
Page 2 of 4 

The ILA allows the two ports to: 
Work cooperatively to jointly procure consulting services for an economic impact study; 
Conduct a comprehensive analysis of the economic impacts derived by the activities
related to each port. 
BACKGROUND 
The POS has undertaken a study of the economic impacts of the Seattle Harbor and Seattle-
Tacoma International Airport in approximate five-year intervals since 1987. The study measures
the economic impacts of the Seattle Harbor and Airport in terms of jobs, wages and salaries,
business revenues and tax receipts. The analysis covers the economic impacts of the Marine
Cargo, Marina Activity, Cruise Activity, Fishing Activity, Real Estate, and the Airport. 
Information from the study provides defensible representations of the economic impacts associated
with the Port activities and allows for informed policy discussion regarding the Port's current and
potential future role in supporting the economic vitality of the region. The results of the impact
assessment are widely used by the POS for public relations purposes, to obtain state funding for
future port development, and to assist strategic planning efforts in identifying the economic impacts
of various development scenarios, thereby enabling the POS to pursue the projects most
economically beneficial to the local area. 
The benefit derived by conducting the economic impact study is to know the economic impact
the POS's activities and facilities generate in the Puget Sound region in terms of jobs, income,
revenue, and state and local taxes. The study also provides a credible analysis that no in-house
staff can perform. 
The last study was conducted in 2008 based on the data from 2007 (with the exception of the
cruise business, which was based on 2008 operating results). Most of the numbers are outdated.
And over the last two years, we have been repeatedly asked if there are updated numbers
available and when the next study would be conducted by various internal and external
stakeholders. 
Furthermore, as the economic impact numbers are widely cited in press releases and other portwide
and divisional publications. I t is not a best business practice to frequently quote impact
numbers that are five years old. 
Finally, the overarching goal of the Century Agenda is to add 100,000 jobs through economic
growth led by the Port over the next 25 years. It is important to establish a good baseline so that
we can monitor the progress in the next 25 years.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 22, 2013 
Page 3 of 4 
Objectives 
The POS and POT would solicit proposals from firms interested in conducting a comprehensive
analysis of the economic impacts derived by the activities related to each port and share the cost
of the preparation of this study; and a section of the comprehensive economic study would assess
areas of economic impact generated by the POS and POT in the Puget Sound region and in the
State of Washington. Additionally, the POS and POT agree to the following: 
The ports shall continue to work cooperatively to jointly procure consulting services for
an economic impact study. 
Each port shall designate a primary contact person to facilitate communications
concerning the execution of this ILA. 
POT shall be responsible for administering the execution of the RFP and contract, but
shall confer with the POS about material matters related to the procurement of the
consultant and contract. The POS is a third-party beneficiary to the contract executed
between the consultant and the POT. 
The ports shall jointly select the consultant and shall designate appropriate staff to serve
on the selection team.
Scope of Work 
The scope of work may include the following: 
(a) Joint study objectives of the POS and POT together; 
(b) POT specific study objectives; 
(c) POS specific objectives; and 
(d) Economic impact of the State of Alaska on the Puget Sound region.
If the two ports decide to include (a) or (d), we shall equally share of the costs of the joint study
objectives. If either port decides to include (b) or (c), each port shall be responsible for the cost
of its individual study needs and the contract shall provide for a method to add or revise the
scope of the study. The POS can spend up to $200,000 for the joint study and the POS-specific
study objectives.  The POS will manage this additional work, directing the consultant as
necessary.
FINANCIAL IMPLICATIONS 
The cost for the economic impact study is included in the Finance & Budget Department's 2014
operating budget in the amount of $200,000. 
STRATEGIES AND OBJECTIVES 
This project supports the Port strategy to implement the Century Agenda action plan. It would
also promote further collaboration and corporation between the two largest ports in the state.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 22, 2013 
Page 4 of 4 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do nothing. A joint study will not only help the general public, media and elected
officials to understand the huge economic benefits generated by the two ports, but also promote
further corporation in the future. Doing nothing is a missed opportunity for collaboration that can
benefit both ports. This is not the recommended alternative. 
Alternative 2  Delay the economic impact study. The POS has delayed the study for a year, and
we have been repeatedly asked when the next study would be conducted by various internal and
external stakeholders. Additionally, it is not a best business practice to frequently quote impact
numbers that are five years old. This is not the recommended alternative. 
Alternative 3  Execute the ILA with POT. This agreement is beneficial to both the POS and
POT. A joint study is expected to have some cost savings compared to a separate study
conducted by each port due to some economy of scale. And more important, it helps promote
further cooperation of the two ports. This is the recommended alternative. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST 
The Port of Seattle and Port of Tacoma Interlocal Agreement. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None.