Template revised January 10, 2019.

COMMISSION

AGENDA MEMORANDUM

Item No.

ACTION ITEM

Date of Meeting

October 25, 2022

DATE : October 18, 2022

TO: Stephen P. Metruck, Executive Director

FROM: Eileen Francisco, Director of Aviation Project Management Group

Eric ffitch, Senior Government Relations Manager

SUBJECT: Washington State Department of Transportation State Route 509 Completion

Project Stage 2 Memorandum of Understanding

Amount of this request:

Total estimated project cost:

$30,050,000

ACTION REQUESTED

Request Commission authorization for the Executive Director to execute an agreement with the

Washington State Department of Transportation (WSDOT) supporting the completion of Stage 2

of the State Route (SR) 509 Completion Project as part of the Puget Sound Gateway Program.

EXECUTIVE SUMMARY

The Puget Sound Gateway Program includes two projects: the SR 509 Completion Project in King

County and the SR 167 Completion Project in Pierce County. WSDOT is working toward issuing a

Request for Proposal for the construction of Stage 2 of the SR 509 Completion Project. Since a

portion of project is within the Port of Seattle corporate boundary, a Memorandum of

Understanding (MOU) between WSDOT and the Port has been developed establishing framework

for coordination throughout the duration of the project. The Port has certain design

requirements or requests to be incorporated into the construction of the project, which include

property access from South 200th Street, Southern Airport Expressway (“South Access”) forward

compatibility, signage on South 188th Street, detention pond treatment, landscaping, and

maintenance of traffic.

JUSTIFICATION

The Port of Seattle and the Northwest Seaport Alliance consider the completion of the Puget

Sound Gateway Program to be critical to a vital freight corridor that supports the movement of

goods to and from our seaport facilities and our Seattle-Tacoma International Airport. The

program provides direct freight links between our facilities and key distribution centers and

improves regional mobility for goods that arrive in the Puget Sound from Eastern Washington

and states along the US supply chain’s northern tier that are bound for international destinations.

COMMISSION AGENDA – Action Item No. 8d Page 2 of 4

Meeting Date: October 25, 2022

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

In addition to the economic benefits of improved freight mobility, any upgrades to the

transportation network in the congested Puget Sound region have significant community

benefits as well. Communities in South King County, around the SR 509 corridor, have seen the

challenging impacts of passenger and cargo growth through the airport and in the region.

Upgrading the transportation network that serves their community, is another important reason

the Port supports the Puget Sound Gateway Program.

DETAILS

In 2018 the Port entered into a local funding and phasing MOU with WSDOT and other local

agency partners. This MOU identified the Port as one of eighteen local agency partners

committed to providing funding commitments supporting the completion of the Puget Sound

Gateway Program. The Puget Sound Gateway Program includes two projects: the SR 509

Completion Project in King County and the SR 167 Completion Project in Pierce County.

The SR 509 Completion Project is to be completed in three stages:

• Stage 1a: WSDOT partnered with Sound Transit’s Federal Way Link Extension project to build

a new SR 99 bridge near South 208th Street and new walls to reduce noise to nearby

neighborhoods. The partnership reduces construction impacts by building both projects at

the same time. Work is expected to be complete in late 2022.

• Stage 1b: This stage is also called the SR 509/I-5 to 24th Avenue South – New Expressway

Project and builds the first mile of new SR 509 Expressway, new I-5 ramps, new 24

Avenue

South interchange, and a new bridge.

• Stage 2: This stage is also called the SR 509/24th Avenue South to South 188th Street – New

Expressway Project, is the project's final stage. WSDOT will build the remaining two miles of

new SR 509 Expressway, reconfigure SR 509 interchanges at South 188th and South 160th

Streets, and add a southbound auxiliary lane on I-5 between SR 516 and South 272nd Street.

In 2020 the Port entered into an Interlocal Agreement with WSDOT that identified the Port’s

financial commitment in support of the SR 509 Completion Project. The Interlocal Agreement

identified $15 million in funding to support the first phase with a commitment no earlier than

December 2023. It also identified up to an additional $15 million in funding for the second phase

with a payment schedule to be determined by both parties. An additional $50,000 has also been

identified for staff costs to support of the design and construction of the SR 509 Completion

Project.

This request is to support the execution of a MOU that includes a number of design and

construction components for Stage 2 of the SR 509 Completion Project. This MOU is essential to

support WSDOT’s procurement of the design-build team and includes requirements for runway

protection zones, South 194

Street local access, forward compatibility for the Southern Airport

Expressway (“South Access”), signage on South 188

Street, landscaping, maintenance of traffic

strategies, detention pond treatments, and South 200

Street property access. The SR 509

COMMISSION AGENDA – Action Item No. 8d Page 3 of 4

Meeting Date: October 25, 2022

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

Completion Project will also require permanent and temporary construction easements on Port

property but these actions do not require Commission authorization.

Schedule

Stage 1a is currently in construction with work expected to be complete in late 2022. Stage 1b is

also in construction with work expected to be complete in 2025. Stage 2 is in preliminary

engineering with work expected to be complete in 2028.

ALTERNATIVES AND IMPLICATIONS CONSIDERED

Alternative 1 – Do not support the SR09 Completion Project

Cost Implications: $17,000 in expense costs to date

Pros:

(1) Lower financial contribution by the Port

Cons:

(1) Does not support improvements to the vital freight corridor that supports the

movement of goods to and from our seaport facilities and SEA

(2) The Port would violate its Interlocal Agreement with WSDOT and the MOU with other

local governments supporting the Puget Sound Gateway Program

(3) The Port would potentially compromise its relationship with the Washington State

Legislature

This is not the recommended alternative.

Alternative 2 – Support the SR 509 Completion Project

Cost Implications: $30,050,000

Pros:

(1) Supports the SR 509 Completion Project

(2) Provides improvements to the vital freight corridor that supports the movement of

goods to and from our seaport facilities and SEA

(3) Consistent with the Interlocal Agreement and MOU supporting the Puget Sound

Gateway Program

Cons:

(1) Higher financial contribution by the Port

This is the recommended alternative.

COMMISSION AGENDA – Action Item No. 8d Page 4 of 4

Meeting Date: October 25, 2022

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

FINANCIAL IMPLICATIONS

Annual Budget Status and Source of Funds

The $30 million Port contribution is currently written into the Port’s Plan of Finance. The initial

$15 million contribution is scheduled to begin no sooner than December of 2023. The funding

source for this agreement would be the tax levy or general obligation bonds.

The timeframe for the remaining $15 million Port contribution was based on the timeline put

forward by the Washington State Legislature in their 2017-2019 transportation budget. Since the

project was accelerated that disbursement is being reviewed. Once defined the original Interlocal

Agreement will be amended and will be part of a future Commission action and briefing later in

2023.

ATTACHMENTS TO THIS REQUEST

(1) Draft memorandum of understanding

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS

January 7, 2020 – The Commission authorized the Executive Director to execute an Interlocal

Agreement with WSDOT regarding the SR 509 Completion Project

October 22, 2019 – The Commission conducted the second reading and passed Resolution

3762, a resolution to surplus and sell real property to WSDOT in support of the SR 509

Completion Project

October 8, 2019 – The Commission introduced Resolution 3762, a resolution to surplus and

sell real property to WSDOT in support of the SR 509 Completion Project, and conducted

the public hearing

May 22, 2018 — The Commission authorized the Executive Director to execute the Puget

Sound Gateway Local Funding and Phasing MOU with other agency partners

November 22, 2017 – The Commission convened a roundtable on “Increased Travel to and

from the Airport over the next 20 years” which included a briefing on the Puget Sound

Gateway Program