COMMISSION AGENDA MEMORANDUM Item No. ACTION ITEM Date of Meeting 8d November 11, 2025 DATE : October 22, 2025 TO: Stephen P. Metruck, Executive Director FROM: Sarah Ogier, Director-Maritime Environment & Sustainability Jon Sloan, Sr. Manager, Environmental Programs Laura D. Wolfe, Sr. Env. Program Manager-Maritime Environment & Sustainability SUBJECT: Memorandum of Agreement for Permitting Support between Port of Seattle and City of Seattle Department of Construction and Inspections Amount of this request: Total estimated project cost: No new funding requested, but up to $800,000 will be charged against capital and expense projects that utilize this agreement. $2,360,000 ACTION REQUESTED Request Commission authorization for the Executive Director to extend the term of the existing Memorandum of Agreement (MOA) with the Seattle Department of Construction and Inspections (SDCI) for up to an additional four years. The agreement commits SDCI staff to expediting all Port of Seattle permit reviews. Funding for this action is covered by capital and expense projects that utilize this agreement and divisional operating expense allocations and was included in the 2026 budget. No new funding is requested with this action. EXECUTIVE SUMMARY This authorization request extends the existing MOA between the Port of Seattle and SDCI for expedited permitting services. The agreement formalizes coordination with SDCI and establishes expectations for each party to meet project timelines and applies to all Port of Seattle and The Northwest Seaport Alliance projects, including larger capital projects and smaller expense projects, under review by SDCI. As examples, the existing agreement assisted and helped expedite permitting for the Terminal 5 berth improvements, Fishermen's Terminal Redevelopment Project, Terminal 91 Uplands Redevelopment Project, as well as numerous small works and maintenance capital or expense projects. The requested four-year authorization window falls within the Port of Seattle's 5 year capital investment plan. Proposed investments in the plan require significant and complex permit approvals. The liaison services authorized under this agreement provide expedited permit reviews, dedicated SDCI staff familiar with Port operations, and continued guidance throughout capital project implementation. The Port of Template revised January 10, 2019. COMMISSION AGENDA - Action Item No. 8d Meeting Date: November 11, 2025 Page 2 of 5 Seattle Commission originally authorized this MOA on January 26, 2016. The current authorization expires on January 26, 2026. Continued authorization would commit SDCI staff to expediting Port of Seattle projects under permit review until January 26, 2030. JUSTIFICATION The Port's Maritime and Economic Development Divisions' capital investment plan proposes improvements at Terminal 91 Uplands and other campus improvements, Terminal 91 Berths 6 and 8, T91/66 Shorepower Project, Terminal 5 Container Yard Expansion, SBM Dock A Pier Rehabilitation, Terminal 25 South Habitat Restoration, Terminal 18 Shore Power, Jack Block Park Pier Replacement, and a propeller monument project, among others. Each of these projects require close coordination with the City of Seattle to meet individual project timelines. The agreement will minimize project delays, support the implementation of the capital investment plan, and contribute to the following Century Agenda strategies: • Position the Puget Sound region as a premier international logistics hub • Responsibly invest in the economic growth of the region and all its communities • Be the greenest, most energy efficient port in North America • Be a highly effective public agency Diversity in Contracting This MOA is between the City of Seattle and Port of Seattle. As such, there is no ability to meet any Diversity in Contracting goals with this MOA. DETAILS Scope of Work The Port of Seattle Commission first authorized this agreement on January 26, 2016. Since that time, the agreement has supported more than 60 capital and expense projects under review by the Seattle Department of Construction and Inspections. The agreement states that SDCI will provide the following services: (1) (2) (3) (4) (5) (6) (7) (8) (9) Facilitate scheduling timely pre-submittal conferences and permit intake appointments; Provide timely and accurate information on application submittal requirements; Respond to questions and provide follow-up in a timely manner; Facilitate coordinated review of projects with other departments; Identify process and code issues early in the pre-application and review process; Facilitate timely resolution of code and process issues within SDCI and across department lines; Provide a timely and predictable process to raise and resolve code and permitting issues; Review projects within agreed upon timelines identified in the project schedule; Provide a single point of contact for project facilitation of Port projects. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8d Meeting Date: November 11, 2025 Page 3 of 5 SDCI will bill the Port monthly to cover the salary for permitting staff to process our permits. Either party can discontinue the agreement given 30 days' advanced notice. This provides flexibility if permitting project loads decrease. Sound Transit has maintained a similar agreement with the City of Seattle since 1998. Their agreement covers the design and implementation of light rail in the City of Seattle. The Port of Seattle has similar agreements in place for dedicated liaison staff for expedited permit review with the U.S. Army Corps of Engineers and for staff dedicated to National Marine Fisheries Service consultation needed for in-water work approvals. Without this agreement, the Port could expect to see longer permitting process times (at least 4 months per permit). This MOA guarantees that the City can dedicate staff to Port projects and commits the City to providing reviews in a timely manner. In addition, the Port benefits from SDCI expertise and guidance in navigating related project coordination with other City departments and additional services (outlined above) not generally included in the standard SDCI permit process. ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 - Do not authorize agreement extension between the Port of Seattle and Seattle Department of Construction and Inspections Cost Implications: $0; but will result in additional costs due to project delays Pros: (1) Cons: (1) (2) (3) Cost savings from not authorizing agreement. Permitting time will increase resulting in potential project delays (at least an additional 4 months per permit) No early guidance from the City of Seattle in capital project implementation. No emergency consultation due to project field changes or project issues. This is not the recommended alternative. Alternative 2 - Authorize agreement extension for LESS than the requested four years. Cost Implications: Approximately $200,000 per year for duration of authorization Pros: (1) (2) (3) (4) Cons: Permitting review times coordinated with project timelines. Guidance for complex capital projects. Dedicated SDCI staff familiar with industrial marine development. Potential cost savings from partially authorizing agreement Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8d Meeting Date: November 11, 2025 (1) (2) (3) Page 4 of 5 Agreement will not cover the full implementation timeframe of major capital improvements. Requires more administrative effort for Port, as well as city staff in processing agreement renewals more often. It is inefficient. Missed renewals could increase permitting time for some projects. This is not the recommended alternative. Alternative 3 - Authorize extension of existing agreement for up to four years. Cost Implications: Approximately $200,000 per year for four years Pros: (1) (2) (3) (4) Cons: (1) Permitting review times coordinated with project timelines. Guidance for complex capital projects. Dedicated SDCI staff familiar with industrial marine development. Less administrative burden with a multi-year term that aligns better with the life cycle of the capital plan and projects we seek to permit. Costs associated with SDCI agreement, which can be terminated with 30 days' notice. This is the recommended alternative. FINANCIAL IMPLICATIONS The agreement is estimated to cost $200,000 per year. The $200,000 stated in this request is an estimate based on previous agreement costs between 2016 and 2026. Actual costs are subject to change based on SDCI labor rates set annually by Seattle City Council. The Port of Seattle reimburses the City of Seattle for work completed under the agreement. Agreement costs are included in project costs within the Port's annual budget requests and capital investment plan. The total project cost of $2,360,000 is the authorized amount to-date under the existing agreement ($1,560,000) plus the estimated additional $800,000 for the four-year extension. Annual Budget Status and Source of Funds No new funding is requested. Funding for this agreement is covered by allocated divisional operating expenses. ATTACHMENTS TO THIS REQUEST (1) (2) Draft Contract Amendment to be signed by POS and SDCI through Docusign (City of Seattle I-00318695 SA-05_final) Original contract (Executed Agreement) Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8d Meeting Date: November 11, 2025 Page 5 of 5 PREVIOUS COMMISSION ACTIONS OR BRIEFINGS January 26, 2016 - The Commission authorized the Chief Executive Office to enter into a new memorandum of agreement with Seattle Department of Construction and Inspections for up to three years. January 8, 2019-The Commission authorized the Executive Director to enter into a new Memorandum of Agreement with Seattle Department of Construction and Inspections for up to five years. February 13, 2024-Executive Director Metruck reported to Commission that the MOA for Permitting Support between POS and SDCI was approved under Executive Director Delegation Action in January 2024 (Request 1060-2024). Template revised June 27, 2019 (Diversity in Contracting).