COMMISSION 
AGENDA MEMORANDUM                        Item No.          8g 
ACTION ITEM                            Date of Meeting      October 25, 2022 
DATE :     October 6, 2022 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Stephanie Jones Stebbins, Managing Director, Maritime Division; Director, Marine
Stormwater Utility 
Sarah Ogier, Director, Maritime Environment & Sustainability 
Jane Dewell, Sr. Manager Environmental Programs/Marine Stormwater Utility 
SUBJECT:  Adoption of 2023 Marine Stormwater Utility Rates 
Amount of this request:                       $0 
Total estimated project cost:                   $0 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to set 2023 Marine Stormwater
Utility rates with an increase of 4.6% from 2022.
EXECUTIVE SUMMARY
The requested authorization will provide a 2023 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% increase from 2022.
This rate is in line with the previous forecast presented to Commission on September 14, 2021.
JUSTIFICATION
A rate increase at the proposed level of 4.6% allows the Utility to improve water quality to meet
the Port’s Century Agenda environmental goals by: 
1.  Meeting or exceeding stormwater 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 and increase the performance
of the stormwater 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

Template revised January 10, 2019.

             COMMISSION AGENDA – Action Item No. 8g                                   Page 2 of 5 
Meeting Date: October 25, 2022 
tenants,  and  reinvests  that  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 priority stormwater needs
at Port facilities. Benefits of Utility work include water quality protection in the Puget Sound as
well as 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 Utility operation and maintenance. 
The Port Utility rates continue to be on average 24% lower than the City stormwater rates 
according to City Resolution 32000 (signed May 13, 2021). 
The Utility rates are approved annually by the Commission. The Utility’s internal leadership 
advisory committee reviews and approves rate recommendations for Commission consideration
and approval. The advisory committee has recommended a 4.6% increase in 2023. This is
consistent with rate analysis and projections provided to Commission last year. 
Scope of Work 
The Utility completed a full system assessment to obtain baseline conditions of the existing
stormwater infrastructure at the end of 2019. As of mid-2022, over 70 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 to create policies that guide Utility work, billing system, and support to 
tenants and Port business units to comply with stormwater regulations. 
Several capital projects were completed to replace poorly functioning stormwater infrastructure
and to purchase large equipment (e.g., closed-circuit television truck, vacuum truck, grout truck)
that support this work. In 2021, the Utility completed its first strategic plan, which included 
feedback from Port, NWSA, and external tenant stakeholders. The Strategic Plan memorializes a
vision and mission for the Utility to prioritize our work for five years (2021-2025). This plan is
intended to help better serve customers and ensure a resilient Utility while supporting the
Maritime industry. There are six goals with strategies and specific tasks to support the guiding
principles defined in the mission and vision statements. 
The projected expense and capital budgets in 2023 total approximately $7 million, which will be
necessary to: 

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

[Annotation] Ogier, Sarah
This could be interpreted to mean same rate. That is not the case. We are maintaining consistent rate increases & - maybe this should say maintain predictable rate growth or course?
[Annotation] Ogier, Sarah
Below we use words:  steady  predictable  rate change  &
[Annotation] Dewell, Jane
Added 'increase' to the bullet point to make it clear
COMMISSION AGENDA – Action Item No. 8g                                   Page 3 of 5 
Meeting Date: October 25, 2022 
• 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 two to three green or innovative stormwater treatment systems; 
• Implement technology to support mobile field inspection solutions; 
• Implement dashboard for real-time data analysis of Stormwater Infrastructure Asset
Management System; 
• Implement scoring matrix including equity, diversity and inclusion considerations to
prioritize infrastructure work; 
• Implement year 3 of the strategic plan; 
• Initiate planning and research for in-depth climate change/resilience study of stormwater
infrastructure; 
• 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 2023 rate: 
1.  Maintain adequate budget to meet or exceed stormwater regulatory requirements, 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 6-month fund reserve for financial prudence consistent with Port policy and
best practices. 
4.  Maintain a consistent rate increase over the 6-year projection. 
Schedule 
The Utility advisory committee reviewed and approved the rate recommendation in early August
2022. This committee consists of Port and NWSA operations, real estate, property management
and finance leaders. The Utility does not explicitly seek external input, consistent with other
public drainage utilities, but relies on the committee’s expertise to reflect customer needs and
priorities. The public notice for Commission approval seeks public input similar to the City Council
approval process for municipal utilities. If approved by the Commission, the 2023 rates will be
adopted by the Utility effective January 1, 2023. The Utility notifies tenants of the upcoming rate
change following adoption. Tenants can dispute billing fees at any time by contacting Utility staff,
and a decision would be made within 60 days of receipt of the dispute. 

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

[Annotation] Ogier, Sarah
Does this rate path meet objective of maintaining 6-month fund reserve? If not, should be noted?
[Annotation] Dewell, Jane
I think the last analysis run by Dave K the issue of dropping below the reserve went away, but I'll double-check
[Annotation] Dewell, Jane
Confirmed that latest analysis shows that 6-mo fund reserve is maintained - no dropping below
COMMISSION AGENDA – Action Item No. 8g                                  Page 4 of 5
Meeting Date: October 25, 2022 

ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1 – Increase rates by 3% 
Cost Implications: Projected revenue in 2023 will be $6.97M
Pros:
(1)   Lowest 2023 financial impact to tenants, NWSA and Port business units than preferred
alternative. 
(2)   Continue lower rate to support economic recovery. 
Cons:
(1)   Higher average rate change compared to preferred alternative, projecting an average
of 4.9% over a 6-year period. This alternative assumes a rate increase of 6.5% in 2024
to 2026 to meet increased capital spending, with a lower rate increase of 3.5% in 2027
and 2028.
(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% 
Cost Implications: Projected revenue in 2023 will be $7.08M
Pros:
(1)   Lowest average rate change over the next six years, projecting an average of 4.6%
through 2028 to conduct our project stormwater work and maintain recommended
fund reserve balance. 
(2)   Steady projected rate change of 4.6% over the next six years allows customers to better
plan for budget changes. 
(3)   Funds critical capital investments to meet Century Agenda goals and exceed regulatory
requirements.
Cons:
(1)   Slightly higher fees for tenants, NWSA and Port business units in 2023 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 fund reserve as sound fiscal policy consistent with standard Port
procedure, 

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

            COMMISSION AGENDA – Action Item No. 8g                                  Page 5 of 5
Meeting Date: October 25, 2022 
•     Reduce operating costs funded by Port business units and tenants by funding stormwater
related maintenance activities, and 
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. 
The stormwater utility will evaluate whether a periodic 2-to-3-year rate review and approval
cycle would be more efficient than the current annual rate review and approval cycle. Currently
the advisory committee meets annually to review and discuss proposed rate changes, which then
go to Commission for approval. Changing the annual review to every 2 or 3 years, based on a 6-
year rate evaluation, will be evaluated in 2023, and if prudent, be proposed as a change in future. 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
September 14, 2021 – The Commission approved Marine Stormwater Utility Rates for 2022. 
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).