Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
8m
ACTION ITEM
Date of Meeting
November 14, 2023
DATE: October 20, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Dan Thomas, Chief Financial Officer
Michael Tong, Director, Corporate Budget
SUBJECT: 2024 Service Agreements for Port of Seattle Staff to Provide Services to the
Northwest Seaport Alliance
Amount of this request:
$0
Total estimated project cost:
$0
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute an interlocal agreement
(ILA) with the Northwest Seaport Alliance (NWSA) to implement a series of support service
agreements to allow Port staff to provide services to the NWSA for 2024.
EXECUTIVE SUMMARY
The NWSA will require service support from different departments at the Ports of Seattle and
Tacoma. The means to provide these support services is through an ILA between the NWSA and
the homeports as a part of the annual budget process. The costs for these support service
agreements are included in both the Port’s and NWSA’s 2024 budgets.
JUSTIFICATION
The NWSA will require support services from both the Ports of Seattle and Tacoma in order to
carry out its functions. Each port will provide these support functions through an ILA that
describes the services to be provided.
DETAILS
The NWSA needs support and services from both ports in order to carry out its various
administrative functions and operations. Each port intends to execute an ILA with NWSA to allow
the ports to provide those services for 2024. The Port of Seattle budget included the budgeted
amounts for the proposed ILA service agreements with the NWSA.
Below is a summary of the major cost allocation changes to the NWSA from the 2023 budget to
the 2024 budget.
COMMISSION AGENDA – Action Item No. 8m Page 2 of 3
Meeting Date: November 14, 2023
Template revised September 22, 2016; format updates October 19, 2016.
There are 18 support service agreements that will be implemented as part of this agreement for
2024 and are attached as exhibits to the ILA.
Scope of Work
The proposed ILA is included as Attachment A. There are 18 service directives that are attached
as exhibits to the ILA. The list of those exhibits is as follows:
Exhibit 1: Accounting, Finance, Treasury and Risk Management
Exhibit 2: Legal and Public Records
Exhibit 3: Information Technology & Information Security
Exhibit 4: External Relations
Exhibit 5: Portfolio Management
Exhibit 6: Capital Development
Exhibit 7A: Port of Seattle Police
Exhibit 7B: Security
Exhibit 8: Maritime Maintenance
Exhibit 9: Central Procurement Office
Exhibit 10: Managing Member (Commission Office)
Exhibit 11: Pier 69 Facilities Management
Department
2023
Budget
'23 vs '24
Change
Explanations
Insurance 809,860 1,080,767 270,907
Mainly due to $272K increase of NWSA
Reimbursable Insurance Expense change to the
NWSA.
Engineering 588,003 803,596 215,593 Mainly due to higher payroll costs.
Marine Maintenance (including
NWSA Mitigation Parks)
4,648,521 4,731,171 82,650
Mainly due to higher payroll costs.
Maritime Security 547,058 582,520 35,462
Due to a $37K increase in security service contract,
partially offset by lower allocation rate.
Environment & Sustainability 317,999 100,000 (217,999) Agreed to $100K limit for 2024.
Police 852,806 755,287 (97,520)
Due to lower allocation rate to the NWSA by
0.52%.
Portfolio Management 72,587 0 (72,587) Agreed no cost allocation to the NWSA in 2024.
Waterfront Project
Management 1,356,596 1,298,026 (58,570)
Due to lower allocation rate from 58.27% in 2023
to 42.60% in 2024.
Labor Relations 39,995 0 (39,995) Agreed no cost allocation to the NWSA in 2024.
All Other 2,767,998 2,837,072 69,074
Total 12,001,424 12,188,440 187,016
COMMISSION AGENDA – Action Item No. 8m Page 3 of 3
Meeting Date: November 14, 2023
Template revised September 22, 2016; format updates October 19, 2016.
Exhibit 12: Environment and Sustainability
Exhibit 13: Tribal Coordination
Exhibit 14: Labor Relations
Exhibit 15: Additional Support Services as Needed
Exhibit 16: Equity, Diversity and Inclusion
Exhibit 17: Municipal, County, and State Use of NWSA-Licensed Property
Exhibit 18 – North Harbor Customs and Border Patrol Facilities
Schedule
This is a part of the annual budget process.
FINANCIAL IMPLICATIONS
The amounts required to provide the services to the NWSA are included in the Port’s 2024
budget.
ADDITIONAL BACKGROUND
None
ATTACHMENTS TO THIS REQUEST
(1) Interlocal Agreement
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None