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4/2017
Puget Sound Gateway Program
SR 167 and SR 509 Completion Projects
Local Funding and Phasing
Memorandum of Understanding
1. Participating Parties
In addition to the Washington State Department of Transportation (WSDOT),the following Local
Agency Partners constitute those parties currently participating in this Memorandum of
Understanding pertaining to the local contribution requirement for the Puget Sound Gateway
Program (Gateway Program):
• Port of Seattle • City of Burien • City of Milton
• Port of Tacoma • City of Des Moines • City of Pacific
• King County • City of Edgewood • City of Puyallup
• Pierce County • City of Federal Way • City of SeaTac
• City of Algona • City of Fife • City of Sumner
• City of Auburn • City of Kent • City of Tacoma
2. Background and Purpose of MOU
In July 2015,the Washington State Legislature and Governor Inslee acted to fund the Gateway
Program through the Connecting Washington revenue package.The Gateway Program is
comprised of two projects:the State Route 167 Completion Project and the State Route 509
Completion Project.These projects provide essential connections to the ports of Tacoma and
Seattle and will help ensure that people and goods move more reliably through the Puget Sound
region.
WSDOT is the lead project sponsor and is responsible for the planning,design and construction
of the Gateway Program, as well as for its overall financial management. The program has been
guided from its beginning by a Joint SR 167/SR 509 Executive Committee(Executive Committee),
comprised of elected and appointed representatives of local jurisdictions served by the Gateway
Program (Algona,Auburn, Burien, Des Moines, Edgewood, Federal Way, Fife, Kent, Milton,
Pacific, Puyallup,SeaTac,Sumner,Tacoma, King County, Pierce County, Port of Seattle,and Port
of Tacoma)as well as Federal Highway Administration,Washington State Transportation
Commission,Washington State Department of Transportation, Puget Sound Regional Council,
Sound Transit, Pierce Transit, and the Freight Mobility Strategic Investment Board.
Funding for the Gateway Program has been approved to come from the state gas tax,tolls, local
contributions,and potential federal and state grants.Total funding for the Gateway Program,
from the 2015 Connecting Washington transportation funding package, is$1.875 billion,which
includes local contributions of$130 million.The program has been funded over a 16-year
1
timeline. Based on the legislative funding plan, major construction for a first stage would occur
from 2019 through 2025,and a second stage from 2026 through 2030. Local contributions will
be needed to construct both stage one and stage two projects.
In the 2017 Legislative session new language was enacted (Engrossed Senate Bill 5096§
306(20)(b)) requiring development of a Memorandum of Understanding(MOU) between the
Local Agency Partners and WSDOT. The legislature directed that:
The secretary of transportation must develop a memorandum of understanding with
local project stakeholders that identifies a schedule for stakeholders to provide local
matching funds for the Puget Sound Gateway project. Criteria for eligibility of local
match includes matching funds and equivalent in-kind contributions including, but not
limited to, land donations. The memorandum of understanding must be finalized by July
1, 2018. The department must submit a copy of the memorandum of understanding to
the transportation committees of the legislature and report regularly on the status.
To this end,the Executive Committee of the Gateway Program convened a Funding and Phasing
Subcommittee(Subcommittee)to develop a MOU that summarizes their planned future
commitments and planned timing of those commitments to contribute to the SR 167 and SR 509
projects.
The Subcommittee goals include:
• Support efforts to build the Gateway projects on or ahead of schedule
• Create successful local partnerships
• Obtain sufficient local funding to build the Puget Sound Gateway projects
• Time grant-funding projects to support the project delivery schedule
The construct of local funding participation,when authorized by the legislative bodies of the
relevant agencies through a series of forthcoming interlocal agreements, is based on the
following projections:
SR 167 SR 509 TOTAL
Port contributions $30 million $30 million $60 million
Federal INFRA grant $10 million $10 million $20 million
Local agency partner $10 million $10 million $20 million
match
Other Grants(PSRC, $20 million $10 million $30 million
FMSIB,TIB)
Total $70 million $60 million $130 million
3. Local Funding Strategy
A key element of the local funding strategy is to identify projects within the Gateway Program
that provide clear and measurable benefits to local jurisdictions. In the Gateway Program,these
are called "Local Nexus Projects,"are designed to:
2
• Create a positive business case for Local Agency Partners by focusing on the parts of the
program that are most relevant and important to local jurisdictions
• Leverage the potential to access significant grant funding to support local funding
assumptions
In support of the local funding strategy, Local Agency Partners shall:
• Participate,co-fund match,and submit grant applications with support from
Subcommittee staff, as identified in Section 6 of this MOU
• Combine local monetary and in-kind contributions and project funds to ensure fully-
funded applications,as identified in Section 6 of this MOU
• Support the grant effort and avoid competition with the local projects in the year of
application
The following Local Nexus Projects have been identified within the north(SR 509)and south (SR
167)segments of the Gateway Program:
Gateway North(SR 509) Gateway South (SR 167)
188th South Ramps Meridian West Ramps
SeaTac Access,with Ramps to 28th/24th 54th Avenue East Ramps
Avenue South
Veterans Drive Extension Interurban Trail
Lake to Sound Trail Valley Avenue West Ramps
Port of Tacoma Access/SR 509 Spur
70th Avenue E Bridge Relocation
If Local Nexus,INFRA, and any other pending grant projects become fully funded,these projects
will contribute substantially toward the Legislative requirement for local match. Funding
commitments will be achieved via an interlocal agreement from each signing party up to the
amounts presented in this MOU. Local Agency Partner signatories to this MOU understand that
once the local contribution requirements set forth in ESB 5096($130 million) is achieved,that
Local Agency Partners will not be required to commit to additional funds beyond what is
outlined in this MOU. If additional grant funding or additional funds from other sources are
obtained that fulfill the$130 million local contribution requirement,the Secretary of
Transportation and the Executive Committee will review and determine to either reduce local
agency partner match payments, or recommend expanding scope of the Gateway Program, and
amend each signing party's interlocal agreement accordingly.
4. Local Participation Policy
The Joint Executive Committee has agreed to a funding and phasing policy that structures local
agency partner match requirements to be commensurate with the benefits accrued from the
project at a local level. This policy states that:
3
All local agency partners accrue some benefit from the Puget Sound Gateway Program.
Partners receiving fewer benefits, however, are not expected to contribute as much as
partners who receive more benefits. Direct benefits are those that are most quantifiable,
but there are other components of value that include indirect,strategic and policy/social
benefits. Both direct and indirect benefits will be assessed as part of the consideration of
local contributions, because they are more easily quantifiable than strategic and
policy/social benefits.
All Local Agency Partner signatories of this MOU expect to seek approval of interlocal
agreements to contribute a match to be applied to Local Nexus Projects at a level that reflects
their respective anticipated level of benefit,as identified in Section 6 of this MOU.
5. Benefit Assessment Methodology
The proposed financial participation by each partner is based on a general,qualitative
assessment of the net benefits expected to be received by full completion of the Gateway
Program.The assessment includes the following metrics,based on available project data and
transportation modeling outputs:
• Direct transportation linkages.The location of direct access points for new limited
access highways or other transportation infrastructure that benefits the community.
• Effects on local sales taxes.The impacts of the projects to sales tax receipts, both in
terms of one-time construction sales taxes for the project,and ongoing sales taxes from
impacts to commercial uses.
• Travel time savings.Overall travel time savings for local car and truck traffic associated
with the projects.
• Traffic diversion from local streets.The diversion of,or increase in,traffic on local
arterials due to the project,with associated positive impacts to traffic safety and local
road maintenance.
• Effects on local employment.The potential effects of improved accessibility are
reviewed,particularly in the context of access to new or potential employment uses.
• Effects on developable residential lands.The potential impacts of changes in traffic
flow and accessibility on residential land development,with a focus on areas within the
jurisdiction that are available for redevelopment.
• Effects on developable employment lands.The potential impacts of changes in traffic
flow and accessibility on the development or redevelopment of commercial and
industrial lands.
• Achievement of local policy goals.The alignment of the WSDOT Gateway Program with
local plans and policies.
• Environmental and social benefits.Environmental and social benefits specifically linked
to these projects, including upgrades to pedestrian and cycling infrastructure,and
wetlands and riparian restoration.
The approach and findings of the benefits assessments have been provided to the Local Agency
Partners.
4
6. Local Jurisdiction Anticipated Contributions to the Program
Based on results from the benefit assessment described in Section 5,contributions for each of
the Local Agency Partners were determined by project stage in the tables below. Following
execution of this MOU, interlocal agreements will be drafted for subsequent approval.
Anticipated contributions only become binding commitments when embedded in interlocal
agreements,and the conditions therein are approved by the proposed funding entity. Interlocal
agreements between WSDOT and the respective Local Agency Partner must be in place for a
project prior to issuance of the Request for Proposals(RFP)for any proposed construction
contract.The interlocal agreements will become binding commitments,within the statutory
authority of the Local Agency Partner,and will define the schedule of local match payments
expected over the duration of each construction project stage.
WSDOT will exercise due diligence to develop and construct each project on schedule within the
Gateway Program to the best of its abilities. Local Agency Partners will participate in project
development reviews and project meetings in support of the Gateway Program.
If grant pursuits identified in the Stage 1 and Stage 2 tables below are not achieved sufficient to
meet the$130 million local contribution, additional grants will be pursued from the funding
programs listed or from other funding programs that may become available over the life of the
Gateway Program. If Local Nexus Projects go to construction without planned grants,the Local
Agency Partner match funds will still be provided by agreement with WSDOT. If it is determined
that a Local Nexus Project cannot be fully funded,WSDOT will review options with the Executive
Committee. If an official decision is determined by the Executive Committee and the Secretary
of Transportation that the Local Nexus Project is not to be included in a construction project,the
Local Agency Partner match may be withdrawn.
Stage 1 Grant Pursuits for Local Nexus Projects
Project Estimated Funding Grant Target Target Due Anticipated Local Agency Partner Nexus
Construction Program Amount Mo/Year Construction Partner
Cost Expenditure Match
70th Avenue $32,245,600 FMSIB $5,000,000 Mar 2018 2019-2021 $800,000 Fife
E/Interurban $500,000 Tacoma
Trail $3,000,000 Port of Tacoma
TIB $5,000,000 Aug 2018 2019-2021
State $1,400,000 Mar 2018 2019-2021 Fife
Capital&
Transpor
tation
Veterans $33,800,000 PSRC $4,500,000 Apr 2018 2021-2025 $1,000,000 Kent
Drive/SR516
Interchange TIB $5,000,000 Aug 2020 2021-2025 $1,000,000 Kent
SeaTac Access $176,883,500 PSRC $4,500,000 Apr 2018 2021-2025 $2,000,000 SeaTac(ROW
in lieu)
$500,000 Des Moines
5
Port of Tacoma $323,042,000 PSRC $4,500,000 Apr 2018 2021-2025 $1,500,000 Tacoma
Access/509 $3,000,000 Port of Tacoma
Spur $800,000 Fife
FMSIB $5,000,000 Mar 2020 2021-2025
All Gateway INFRA $20,000,000* Nov 2017 2019-2021
Program
SR 167 Stage 1 Port of Jan 2021 2021-2025 $9,000,000 Port of Tacoma
Tacoma
SR 509 Stage 1 Port of Jan 2021 2021-2025 $15,000,000 Port of Seattle
Seattle (expected in
2023-2025)
Total Stage 1 $54,900,000 $38,100,000 $93,000,000
Stage 2 Future Grant Pursuits for Local Nexus Projects
Project Estimated Funding Grant Target Target Due Anticipated Local Agency Partner Nexus
Construction = Program Amount Mo/Year Construction Partner
Cost Expenditure Match
Meridian TBD $3,000,000 2022 2026-2030 $2,000,000 Puyallup
Avenue
Interchange
Valley Avenue TBD $3,000,000 2022 2026-2030 $2,000,000 Pierce County
Interchange
188th Street TBD TBD 2023 2026-2030 TBD SeaTac
Interchange
improvements
SR 167 Stage 2 TBD $4,000,000 2022 2026-2030 $500,000 Edgewood
(ROW in lieu)
$500,000 Sumner
Port of Jan 2026 2026-2030 $15,000,000 Port of Tacoma
Tacoma
SR 509 Stage 2 TBD $4,000,000 2024 2026-2030
Port of Jan 2026 2026-2030 $15,000,000 Port of Seattle
Seattle
Total Stage 2 1 $14,000,000 $35,000A0 $49,000,000
Total Stages
1&2 $68,900,000 $73,100,000 $142,000,000
* — If no INFRA,apply for FHWA BUILD grant for Port of Tacoma Access(SR 509 Spur)
TBD—grant funding program pursuit to be determined in future
7. Terms and Termination
7.1. Amendments
This MOU shall be periodically reviewed and evaluated regarding the need for modifications or
amendments by mutual determination of WSDOT and Local Agency Partners. Amendments to the
MOU shall be required if program funding assumptions need to be adjusted that affect the ability to
construct the identified Local Nexus Projects or the ability to achieve the$130 million local
contribution.Such amendments shall only be binding if they are in writing and signed by authorized
personnel from all of the Local Agency Partners. Except as set forth in an amendment,the MOU will be
unaffected and shall continue in full force and effect in accordance with its terms. If there is conflict
6
between an amendment and the MOU or any earlier amendment,the terms of the most recent
amendment will prevail.
If there is a conflict between subsequent interlocal agreements and the MOU or any earlier
amendments,the terms of the interlocal agreements will prevail.
Changes that do not affect the ability to construct the identified Local Nexus Project or achieve the
$130 million local contribution shall be addressed through the interlocal agreement between WSDOT
and the relevant Local Agency Partner.
7.2. Dispute Resolution
Should any signatory to this MOU object at any time to any actions proposed or the manner in
which the terms of this MOU are implemented,the Executive Committee shall hear the dispute
first and if the disputant(s)is/are not satisfied with the Committee's proposed decision,the
Committee will send to the Secretary of Transportation its proposed solution and all
documentation relevant to the dispute.The Secretary of Transportation shall provide the
Executive Committee with his/her advice on how to resolve the dispute within thirty(30)
calendar days of receiving adequate documentation. Prior to reaching a final decision on the
dispute,the Executive Committee shall prepare a written response that considers any timely
advice or comments regarding the dispute from the Secretary of Transportation,signatories
and other interested parties,and provide them with a copy of this written response.WSDOT
will then proceed according to this final decision.
7.3 Conditions for Termination of Participation
Subject to legislative appropriation and all applicable laws,each signatory shall ensure that the
Gateway Program is carried out in accordance with the terms of the MOU and subsequent
interlocal agreements.A signatory may terminate its participation in this MOU if its terms
cannot be met and by providing written notice to the Secretary of Transportation and the
Executive Committee a minimum of 180 calendar days before a project issues an RFP that relies
on that local agency partner funding. Prior to providing written notice terminating
participation, however,the signatories shall consult with WSDOT to determine whether an
amendment to the MOU might be feasible. If a signatory terminates its participation,WSDOT
will then consult with the Executive Committee to determine if project scope elements need to
be removed if contributions are not realized in accordance with this understanding.
8. Period of Agreement.
This MOU will commence on July 1,2018 and will dissolve when the$130 million of local
contribution have been secured, or when the Local Nexus Projects have been constructed and
are complete.
•
7
9. Signatories
A q .111t/kilt±.
6/21/18
Stephen P. Metruck Date
Executive Director
Port of Seattle
Joe / /
„/ 5/30/18
John Wolfe Date
Chief Executive Officer
Port of Tacoma
.1-1107") 6.0%44.2 6/22/18
Dow Constantine Date
County Executive
King County
3glit0'
# 5/30/18
Bruce Dammeier Date
County Executive
Pierce County
A....D4 '1 6/25/18
David E. Hill Date
Mayor
City of
Algona
111.6 6/11/18
Nancy Backus Date
Mayor
City of Auburn
'J 6/17/18
Brian Wig.• Date
City Manag-
City of Burien
8
Zai }
�-'&— 6/26/18
Michael Matthias Date
City Manager
City of Des Moines
6/13/18
Daryl Eidinger Date
Mayor
City of Edge •od
6/20/18
Ji ofell - Date
M.yor
City of Federal Way
6/20/18
Hyun Kim /// Date
City Manager
City of Fife
1)af 6/26/18
Dana Ralph Date
Mayor
City of Kent
T
4 J�� � 6/21/18
Shanna Styron-Sherrell Date
Mayor
City of Milton
( ::744-14-41"— ; 6/21/18
Leanne Guier ��` """"'yDate
Mayor
City of Pacific
6/12/18
( 1
Kevin Yamamoto Date
City Manager
City of Puyallup
9
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6/28/18
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J•.-ph Scorci• Date
ity Manager
City of SeaTac
)11,1_64ti-4(j, 6/8/18
William L. Pugh Date
Mayor
City of Sumner
6/27/18
Elizabeth A. Pauli Date
City Manager p c 4 4.
City of Tacoma
6/27/18
Roger Millar Date
Secretary of Transportation
Washington State Department of Transportation
10
N Washington State Transportation Building
310 M�I/ Department of Transportation P.O.Boxle 4 300 Avenue S.E.
Olympia,WA 98504-7300
360-705-7000
TTY:1-800-833-6388
www.wsdot.wa.gov
June 28, 2018
The Honorable Steve Hobbs The Honorable Judy Clibborn
Chair Chair
Senate Transportation Committee House Transportation Committee
P.O. Box 40444 P.O. Box 40600
Olympia, WA 98504-0444 Olympia, WA 98504-0600
The Honorable Curtis King The Honorable Mark Harmsworth
Ranking Member Ranking Member
Senate Transportation Committee House Transportation Committee
P.O. Box 40414 P.O. Box 40600
Olympia, WA 98504-0414 Olympia, WA 98504-0600
In the 2017 Legislative session, Engrossed Senate Bill 5096 Section 306(20)(b)
directed WSDOT to develop a Memorandum of Understanding (MOU)to fund the
$130 million from local agency partners for the Puget Sound Gateway Program
included in the 2015 Connecting Washington transportation revenue package.
Engrossed Senate Bill 5096 stated that:
The secretary of transportation must develop a memorandum of understanding
with local project stakeholders that identifies a schedule for stakeholders to
provide local matching funds for the Puget Sound Gateway project. Criteria for
eligibility of local match includes matching funds and equivalent in-kind
contributions including, but not limited to, land donations. The memorandum of
understanding must be finalized by July 1, 2018. The department must submit a
copy of the memorandum of understanding to the transportation committees of the
legislature and report regularly on the status.
In October 2017, WSDOT began a stakeholder process to help establish the local
contributions necessary to achieve the$130 million in local funding. The resulting
Funding and Phasing Subcommittee, made up of 18 affected jurisdictions, has met five
times. From this group, a grant-focused strategy emerged as the most feasible way to
fund the $130 million. A key element of the grant-focused strategy was to identify
smaller project elements within the Gateway Program that provide clear and
measurable benefits to local jurisdictions, called"Local Nexus Projects."The Funding
and Phasing Subcommittee met regularly to establish a process for determining benefits
derived from the Local Nexus Projects, align on contributions, and develop the MOU.
Puget Sound Gateway Program Memorandum of Understanding
June 28, 2018
Page 2
All 18 jurisdictions have endorsed and signed the attached Local Funding MOU.
Additionally, WSDOT and our local agency partners have already submitted four grant
applications this spring for the Local Nexus Projects. We submitted three applications
with the Puget Sound Regional Council (PSRC) and one with the Freight Mobility
Strategic Investment Board (FMSIB). We received the FMSIB grant and two PSRC
grants,totaling $13 million, which combined with local match funding, brings the local
contribution amount to over$26 million for this initial grant cycle.
Ifou have anyquestions or would like to meet for an update on the Puget Sound
Yp g
Gateway Program, please feel free to contact me.
Sincerely,
Roger Millar, PE, FASCE,FAICP
Secretary of Transportation