COMMISSION 
AGENDA MEMORANDUM                        Item No.          8f 
ACTION ITEM                            Date of Meeting      February 9, 2021 
DATE:     January 22, 2021 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Dan Thomas, Chief Financial Officer 
Tom Tanaka, Deputy General Counsel 
SUBJECT:  Revision of 2021 NWSA Service Agreement for Portfolio Management 
Amount of this request:                       $0 
Total estimated project cost:                   $0 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to execute a revision of the 2021
service agreement for Portfolio Management, which is a part of the interlocal agreement (ILA)
between the Port of Seattle (the Port) and the Northwest Seaport Alliance (NWSA) to allow Port
staff to provide services to the NWSA for 2021. 
EXECUTIVE SUMMARY 
The Ports of Seattle and Tacoma provide various support services to the NWSA. These support
services  are provided through interlocal agreements  (ILAs)  between the NWSA and the
homeports that are approved as part of the annual budget process, and the cost of the support
services are included in both the ports' and the NWSA's 2021 budgets. Subsequent to the
approval of the Port of Seattle's ILA last November, the NWSA has hired a new lease
administration specialist and wishes to transfer additional lease administration duties from the
Port of Seattle to the NWSA. As a result of this transfer the cost allocation to the NWSA for Port
of Seattle Portfolio Management services will be reduced accordingly. 
JUSTIFICATION 
Since the NWSA has hired additional staff to handle lease administration responsibilities, less
support for these services is needed from the Port of Seattle's Portfolio Management function.
As a result, Port staff will no longer provide property management services including lease
management, property management, tenant management, and insurance and surety compliance 
for the NWSA's North Harbor properties. The current service agreement needs to be revised to
reflect this change. 


Template revised April 12, 2018.

COMMISSION AGENDA  Action Item No. 8f                                   Page 2 of 2 
Meeting Date: February 9, 2021 
DETAILS 
The NWSA needs support and services from both ports in order to carry out its various
administrative functions and operations. Each port has executed an ILA with the NWSA to allow
the ports to provide those services for 2021. The Port of Seattle's 2021 budget included the
budgeted amounts for the proposed ILA service agreements with the NWSA. 
The NWSA recently hired a new staff position to take on some of the lease administration
responsibilities that have been performed since 2015 by Portfolio Management.  The Port has
discussed this with the NWSA and has reached agreement to reduce the scope of the service
agreement for Portfolio Management. 
For NWSA-licensed properties in King County, Port staff will no longer provide property
management services including lease management, property management, tenant management,
and insurance and surety compliance management. 
Port staff will continue to provide utility administration services including processing of utility
invoices and billing of tenants for their share of utility expense with as well as reimbursement of
tenants paying utility providers directly where Port or other tenants are also using those services.
Services also include  budgeting for relevant utility revenue and expense accounts, and
monitoring/paying for City of Seattle street use permits. 
FINANCIAL IMPLICATIONS 
As a result of this change the allocated cost to the NWSA from Portfolio Management will be
reduced from $194,000 to $104,000, a $90,000 reduction, which will be reabsorbed by the Port
of Seattle. 
ADDITIONAL BACKGROUND 
None 
ATTACHMENTS TO THIS REQUEST 
(1) Attachment  A  (redlined  revision  of  the  2021  Service  Agreement  for  Portfolio
Management). 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
November 10, 2020  Request Commission authorization for the Executive Director to
execute an interlocal agreement with the Northwest Seaport Alliance. 



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