Item No. __8f aach 3___
Meeng Date: November 21, 2023
Summary of 2018 Interlocal Agreement
between the City of SeaTac and the Port of Seale
as of August 30, 2023
EXECUTIVE SUMMARY
Seale-Tacoma Internaonal Airport (Sea-Tac) is located completely within the boundaries of the
City of SeaTac. The City and Port have used interlocal agreements (ILA) since 1997 to address
respecve operaonal and authority issues that could be ancipated to arise with regard to the
operaon of the airport and related facilies. There has been almost no ligaon between the
Port and the City during that me, resulng in greater eciency, economic benet and
operaonal cost savings for both the Port and the City, especially with regard to the Airport’s
capital program and property development.
Sta teams from the Port and the City negoated throughout 2017 on behalf of a new agreement
to bring to the Joint Advisory Commiee (JAC), which is comprised of two port commissioners
and three councilmembers. With JAC approval, the 2018 ILA was adopted by both the SeaTac
City Council and Port Commission, and took eect February 17, 2018 for a term of 10 years
(February 2028).
The agreement is intended to be a comprehensive and cohesive package of elements with 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.
ADOPTED INTERLOCAL AGREEMENT
The purpose of the 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 parties
benefit from partnership, transparency and collaboration around the operation of SEA Airport,
which is an essential public facility under state law, and one of the 12 busiest airports 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 negoaons, the
focus of this Agreement is about the City and the Port ‘moving forward together’ proacvely,
rather than reacvely. Furthermore, this ILA rearms a partnership that allows the Port and the
City to grow together and move the community and region forward in a posive way. The
extensive economic and operaonal presence of the airport in the city creates both benets and
impacts to the adjacent businesses and residents in the city. The ILA is intended to build on the
benets of the relaonship and provide for economic opportunity along with the success of the
airport, and address impacts to City businesses and residents.
Item No. __8f aach 3___
Meeng Date: November 21, 2023
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 adopted 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 adopted 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.
In contrast with the prior ILA, new elements contained within the 2018 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 2018 ILA also includes new fees for service, including permit fees,
and financial support for the City’s General Fund as “Community Relief Contribution.”
Additionally, the ILA addresses transportation impact fees, and surface water management fees
for Port-owned properties.
REVIEW AND ADOPTION
The table lists the primary elements contained within the adopted agreement and the negotiated
outcome for each.
TOPIC
FINAL: COUNCIL-COMMISSION-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 includes City early in SEPA process inside the AAA
boundary, via use of the project checklist.
• City serves as a consulted agency, per WAC, on Port property
outside AAA boundary
Item No. __8f aach 3___
Meeng Date: November 21, 2023
TOPIC
FINAL: COUNCIL-COMMISSION-APPROVED
• City serves as lead agency for development on port-owned
property not related to airport use outside the AAA boundary
SWM fees – annual,
ongoing
• Port pays annual SWM fees of $1.275MM
• 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 delegates building permit authority to the Port for all
work inside the AAA boundary. A map shows permitting
designation.
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 regularly checks 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 concurrency required outside AAA boundary.
• Port and City share traffic planning modelling and associated
costs for model development.
Public Safety & General
Services
• Port pays annual contribution of $1.4MM to the City for
Community Relief, to be used for city-designated services
(currently committed to public safety, traffic and parking
enforcement.)
• Fund goes into special account and distribution noted each
year.
Item No. __8f aach 3___
Meeng Date: November 21, 2023
TOPIC
FINAL: COUNCIL-COMMISSION-APPROVED
• 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 agreement to recommend
renegotiation or continuation and commence renegotiation at
year eight.
SUMMARY OF LETTERS OF AGREEMENT (MINOR AMENDMENTS) (thru Q2 2023)
LOA 2018-01 – Sound Transit Staon Plaorm
Claries that the Sound Transit Staon Plaorm area is under city perming authority.
LOA 2019-01 – Air Cargo Facilies
Claries the use of certain Port parcels for air cargo related operaons.
LOA 2020-01 – Freestanding Retail
Claries that retail uses are permied for the terminal, not freestanding businesses.
LOA 2020-02 – Pre-Applicaon Meeng Agenda Seng
Claries that the Port can also request a Pre-Applicaon Meeng and set the agenda.
LOA 2020-03 – Reorganizing Certain Non-AAA Provisions
Notes secons of the ILA that will need to be reorganized in future ILAs to provide clarity.
LOA 2020-04 – Clarifying Operaonal Fire Inspecons in the Future AAA Area
Claries that city re inspecons will be conducted of designated Port facilies located in
the Future AAA.
LOA 2021-01 – Port Property Zoning for Future City Acon
Claries Port properes to be zoned AVO or AVC in future city-wide zoning changes.
Item No. __8f aach 3___
Meeng Date: November 21, 2023
LOA 2021-02 – FAA Facilies Exempon in AAA
Claries that FAA facilies in the AAA are exempt from perming.
LOA 2021-03 – City Business Licensing Process Changes
Acknowledges the city’s change of process for business licensing.
LOA 2021-04 – Clarifying Perming Authority
Claries the delegaon of perming authority from the city to the Port in the ILA, and the
retenon of associated liability that comes with that delegated authority.
FINANCIAL SUMMARY (thru 2023)
YEAR
Community
Relief
Contribution
Surface Water
Mgt Fee
Quality
Assurance
Minimum
Payment
2018
$1,400,000
$1,274,953
$226,600
2019
$1,400,000
$1,274,953
$233,851
2020
$1,400,000
$1,274,953
$239,697
2021
$1,400,000
$1,274,953
$245,450
2022
$1,400,000
$1,274,953
$257,968
2023
$1,400,000
$1,274,953
$281,701
TOTAL
$8,400,000
$7,649,717
$1,485,268
Grand Total = $17,534,985
YEAR FIVE RECOMMENDATION
Secon 2.3 of the ILA species the procedure, in the h year of the ILA, for recommendaon to
the Joint Advisory Commiee (JAC) whether to “complete the term without renegoang the
terms of the provisions of the Agreement or reopen negoaons immediately.”
On April 4, 2023 City Manager Carl Cole and Port Aviaon Managing Director Lance Lyle issued
a Leer of Recommendaon for compleon of the ILA. Negoaons on the next ILA will
commence someme aer February 17, 2026.
