Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
3b
BRIEFING ITEM
Date of Meeting
November 14, 2017
DATE: November 3, 2017
TO: Dave Soike, Interim Executive Director
FROM: Lance Lyttle, Managing Director, Aviation Division
Clare Gallagher, Director, Capital Project Delivery, Public Affairs
SUBJECT: Briefing on proposed Interlocal Agreement between the City of SeaTac and the Port
of Seattle for a ten-year term beginning February 2018.
EXECUTIVE SUMMARY
Seattle-Tacoma International Airport (Sea-Tac) is located completely within the boundaries of
the City of SeaTac. The City and Port have used interlocal agreements since 1997 to address
respective operational and authority issues that could be anticipated to arise with regard to the
operation of the airport and related facilities. There has been almost no litigation between the
Port and the City during that time, resulting in greater efficiency, economic benefit and
operational cost savings for both the Port and the City, especially with regard to the Airport’s
capital program and property development.
The current Interlocal Agreement (ILA) between the Port and the City of SeaTac will expire early
in 2018. Staff teams from the Port and the City negotiated throughout the year on behalf of a
new agreement to bring to the Joint Advisory Committee (JAC), which is comprised of two port
commissioners and three councilmembers. With final negotiations and approval of the JAC, the
proposal is ready for consideration by the full Port Commission and full City Council.
The proposed agreement is intended to be a comprehensive and cohesive package of elements
for mutual value to both the Port and the City, and a commitment to successful partnership,
providing predictability and consistency for activities between the Port and the City. Each
element reflects a negotiated outcome between Port and City positions, for overall benefit.
The briefing will include background and details of the proposed ILA being presented to the
Port Commission and the City Council, public outreach and scheduled votes for adoption in
November and December.
PROPOSED INTERLOCAL AGREEMENT
The purpose of this ILA is to jointly establish a mutual and cooperative system to exercise
respective jurisdictional authority and avoid disputes between the Port and the City of SeaTac.
The use of an ILA recognizes that the City and the Port have a unique relationship and both
COMMISSION AGENDA – Briefing Item No. 3b Page 2 of 5
Meeting Date: November 14, 2017
Template revised September 22, 2016.
Parties’ benefit from partnership, transparency and collaboration around the operation of Sea-
Tac Airport, which is an essential public facility under state law, and the ninth-busiest airport in
the national system of airports in the U.S. Having a negotiated agreement provides
transparency, predictability and consistency and significantly reduces the potential for litigation
between the Port and the City.
As stated in the Guiding Principles, established by the JAC before commencing negotiations, the
focus of this Agreement is about the City and the Port ‘moving forward together’ proactively,
rather than reactively. Furthermore, this ILA reaffirms a partnership that allows the Port and
the City to grow together and move the community and region forward in a positive way. The
extensive economic and operational presence of the airport in the city creates both benefits
and impacts to the adjacent businesses and residents in the city. The ILA is intended to build on
the benefits of the relationship and provide for economic opportunity along with the success of
the airport, and address impacts to City businesses and residents.
Foundational work for the new ILA began in 2016 with the Guiding Principles providing a
framework for the upcoming negotiations. Following this, staff from the City of SeaTac and
Port of Seattle began active negotiations in January 2017. Work teams, along with City and Port
executives, completed language for all sections of the agreement, and the JAC finalized
negotiations for the proposed agreement in preparation for public briefings and adoption.
The ILA consists of seven Chapters: the Preamble, General Provisions, Land Use &
Development, Permitting & Inspections, Transportation, Environmental Regulations, and Public
Safety & General Services.
The proposed ILA addresses land use and development regulations to serve the interests of
both the Port and the City; delegation of building permitting authority by the City to the Port,
attendant responsibilities and documentation/system needs between the Port and the City;
and traffic planning between the Port and the City, including the initiation of the Neighborhood
Parking Program. The proposed ILA also addresses storm water management, environmental
review and public safety. The framework section, or General Provisions, addresses the term of
the ILA, the role of the Joint Advisory Committee, the amendment process, and dispute
resolution.
New elements contained within this ILA include a boundary map to delineate delegated permit
authority, a process for the Port to support City business license compliance, and a fee
structure to support the integration of Port permitting into the City’s established system. The
proposed ILA also includes new fees for service, including permit fees, and financial support for
the City’s General Fund for public safety and traffic enforcement. Additionally, the ILA
addresses transportation impact fees, and surface water management fees for Port-owned
properties.
COMMISSION AGENDA – Briefing Item No. 3b Page 3 of 5
Meeting Date: November 14, 2017
Template revised September 22, 2016.
SCHEDULE
The members of the Joint Advisory Committee (JAC) unanimously supported the final terms and
conditions of the proposed agreement. The Port Commission and the City Council each will
receive separate briefings on November 14 at their respective meetings. Staff from the City
and the Port will host an open house on the proposed ILA on Thursday, November 16, at the
SeaTac Community Center. The City Council will present the agreement to its Airport
Committee on November 20. The Port Commission and City Council are scheduled to consider
resolutions to adopt the agreement at the November 28 and December 12 meetings.
REVIEW AND ADOPTION
The table lists the primary elements contained within the proposed agreement and the
negotiated outcome for each.
TOPIC
FINAL: JAC-APPROVED
SEPA lead agency
• Port is lead agency inside AAA boundary
• Port is lead agency outside AAA boundary for airport-related
uses
• City is lead agency for non-airport related uses outside AAA
boundary
SEPA process
• Port will include City early in SEPA process inside the AAA
boundary, via use of the project checklist.
• City will serve as a consulted agency, per WAC, on Port
property outside AAA boundary
• City will serve as lead agency for development on port-owned
property not related to airport use outside the AAA boundary
SWM fees – annual,
ongoing
• Port will pay annual SWM fees of $1.3MM
• Port receives a standard 25% discount from the City fee scale,
as per code
• Port receives another 15% discount for comprehensive
performance of the on-airport system
• Port receives $220,000 credit toward fees for regional
detention facility
Other Environmental
Components
Mutually-agreed upon language for landscape standards, aviation
hazards, noise impacts and air quality.
Building Permit
Authority
The City will delegate building permit authority to the Port for all
work inside the AAA boundary. A map shows permitting
designation.
COMMISSION AGENDA – Briefing Item No. 3b Page 4 of 5
Meeting Date: November 14, 2017
Template revised September 22, 2016.
TOPIC
FINAL: JAC-APPROVED
Project valuation establishes a base fee for all permitted projects
and for the costs of incorporating Port data into the City system,
performing quality assurance and receipt data to keep City
records accurate and up to date.
Other Permitting –
Business License
Port will check on-airport locations, particularly behind security,
for business license compliance with Port contractors/lessees and
subcontractors.
Land Use &
Development
Port and City have mutually adopted zoning and standards unique
to Port development needs.
Transportation
• Port subject to traffic impact fees on development outside
AAA boundary.
• Acknowledgement that SEPA is used to mitigate project
impacts.
• City may pursue concurrency outside AAA boundary.
• Port and City share traffic planning modelling costs.
Public Safety & General
Services
• Port will pay annual contribution of $1.4MM to the City for
Community Relief, to be used for public safety, traffic and
parking enforcement.
• Fund goes into special account and distribution noted each
year.
• Monies may be considered as part of future project mitigation
during SEPA process with respect to police and enforcement
or parking and traffic regulations
• Payment may be suspended by the Port if the City commences
litigation against the Port without first going through the
dispute resolution process.
• Port releases its interest in remaining parking tax collected
under current ILA, to support City’s new neighbourhood
parking program
Length of Term
Ten years, with five-year check-in on total agreement to
recommend renegotiation or continuation and renegotiation at
year eight.
COMMISSION AGENDA – Briefing Item No. 3b Page 5 of 5
Meeting Date: November 14, 2017
Template revised September 22, 2016.
ATTACHMENTS TO THIS BRIEFING
(1) Presentation slides of Agreement Overview
(2) Proposed 2018 Interlocal Agreement, Commission briefing version dated November 9,
2017
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None
