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3 APPLICATION AT A GLANCE Proposed Title: Port of Everett s South Terminal Modernization Project Project Summary: Geospatial Information: This project will modernize the Port s South Terminal including dock strengthening, adding shorepower, other utilities and additional rail to meet current terminal standards. Latitude: Longitude: City Demographics: Population in Everett (2014): 106,736 Median Household Income (2014): $69,443 Personal Per Capita Income (2014): $31,782 Unemployment Rate Everett (Jan. 16): 6.3% Persons below poverty level in Everett (2016): 18.0% Congressional District: Washington 02 Project Classification: Urban TIGER Funding Request: $10,000,000 FASTLANE Request: $20,000,000 Non-Federal Match: $25,500,000 Total Project Cost: $55,500,000 Benefit: Cost Ratio: 2.5:1 at 7% and 4.8:1 at 3% Contact: Lisa Lefeber Chief of Policy & Communications Lisam@portofeverett.com Project Documentation: This project meets all statutory requirements under the FY2016 TIGER Notice of Funding Opportunity. 1

4 TABLE OF CONTENTS Executive Summary... 3 I. Project Description... 9 II. Project Location III. Project Parties IV. Grant Funds and Sources and Uses of Project Funds V. Selection Criteria i. Primary Selection Criteria ii. Secondary selection Criteria VI. Results of Benefit-Cost Analysis VII. Project Readiness a.) Technical Feasibility b.) Financial Feasibility c.) Project Schedule d.) Required Approvals e.) Assessment of Project Risks and Mitigation Strategies VIII. Federal Wage Rate Certification Appendices

5 i.) Executive Summary The Port of Everett, located 25 miles north of Seattle, is a strategic self-operating seaport that supports nearly $25 BILLION worth of U.S. exports annually, the largest customs district in Washington State. Everett is home to The Boeing Company s largest manufacturing facility and also homeport to Naval Station Everett. Its regional transportation network supports more than 35,000 jobs and $313 million in state and local tax revenue. Everett s seaport is a strategic port that specializes in high-value, over dimensional cargoes. Most notably, the Port of Everett serves as an extension of the aerospace manufacturing process, and plays a critical role in the industry s just-in-time-delivery schedule. The Port has also been identified as a recovery port to provide resiliency within the region in the event of a man-made or natural disaster near the consumer ports of Seattle and Tacoma (NW Seaport Alliance). It also serves as backup support for the U.S. Army s 833 rd Transport Command. Project Description The Boeing Company supports the Port of Everett s applications to upgrade its South Terminal Intermodal Freight Shipping Facility. The project is a lasting investment that will enhance the Northwest economy s global competitiveness. Shawn Wattles Director, Supply Chain Logistics The Boeing Company The Port of Everett s South Terminal Intermodal Modernization Project (authorizing resolution) is a transformative project that will dramatically improve the status quo by providing significant and measurable improvements over the existing conditions to meet current and future multimodal freight shipping needs of the region and nation. This modernized terminal will create ladders of opportunities in the community supporting an estimated 382 new direct jobs in the projects first year. Total jobs including direct, indirect and induced jobs are estimated to be over 900 in the first year, growing to more than 2,900 over the 20 years of the project. This will provide new opportunities for the community to reduce its current unemployment rate of 6.3%, 1.4% higher than the U.S. average of 4.9%. This project, which is included in Washington State s Freight Plan, will modernize the Port s facilities to meet 21 st Century demands to efficiently and safely serve larger vessels that are currently being chartered by our eight shipping lines, in particular as Panamax class ships 3

6 carrying containerized aerospace cargo are inserted into the rotation. Most notably, the Port of Everett serves as an extension of the aerospace manufacturing process, and plays a critical role in the just-in-time-delivery schedule. It transports ALL the oversized parts for the 747, 767 (military and commercial), 777, K-C46 Tanker and soon to be 777X airplane programs. It also serve as a backup facility to the 787 Dreamliner. Click here to see a video of the Port s role in the aerospace logistics chain. This project is a transformative surface transportation project that aligns with local and regional economic development plans and will show significant measurable improvements over its current condition. The project is necessary for the Port to accommodate the heavier containers being used to transport the airplane parts for the new Boeing 777X program and other breakbulk export cargoes that utilize port facilities. The wharf strengthening is needed for the intermodal transfer of goods from ship to shore, and the rail infrastructure is needed to stage the cargo for transport to the inland states without creating congestion on the BNSF Railway mainline to the Midwest. The Port needs this project, because by the end of 2016, we will have three of the larger charter ships calling our port on a routine basis. We have reached a point where our infrastructure is no longer keeping pace with the industry changes. We are now on an aggressive path to complete the strengthening of the South Terminal as soon as possible to meet our customer s needs. The project includes: Strengthening 560-feet of dock to 1,000 pounds per square foot (psf) and installing crane rail to create a 700 foot modern berth, additional Roll-on/Roll-off cargo berthing capacity that allows for the intermodal transfer of goods from ship to shore in support of the local aerospace industry, as well as other industries that serve the global marketplace. In 2015, the Port completed Project I of this dock strengthening project, to construct a heavy-lift section on a 140 X 110 square foot area at the north end of the wharf. Extending new high voltage power systems into the Port s existing South Terminal to provide power and equipment to allow shipping vessels to cold iron while at berth. Constructing approximately 3,300 lineal feet of additional rail sidings to increase on-site storage from 46 cars to a total of 106 cars. Constructing a new warehouse to support intermodal cargo movement at the South Terminal. Improvement Current Condition Future Condition Berth Length for Cargo Equipment Roll-on/Roll-off Cargo Berth Dock Strength Gantry Cranes Shore Power Terminal Rail Improvements Warehouse Space 140-feet One (1) 140 ft. (1,000 psf.) 560 ft. (500 psf.) None None 5,000 lineal feet None *Gantry cranes not to be acquired with federal funds 700-feet Two (2) 700 ft. (1,000 psf.) Two (2)-100-foot gauge cranes* Shore power availability 9,000 lineal feet Yes, size to be determined 4

7 Ladders of Opportunity The South Terminal Modernization project provides workforce development and recreational opportunities for economically disadvantaged populations, it supports short and long-term job creation for the community, the project supports local and regional economic development goals and emphasizes high-demand careers in Snohomish County, such as welding and manufacturing. Project Location The Project, located at 3410 Terminal Avenue; Everett, Washington (25 miles north of Seattle), is a regionally significant multimodal project that will enhance the region s freight mobility, economic vitality and environment. Project Parties The South Terminal Intermodal Modernization Project has broad-based, multi-jurisdictional support from the community, stakeholders and elected officials including: The Boeing Company, shippers, labor, the U.S. Navy, members of the U.S. Senate and Congress, local governments, higher education institutions, and many more. Click here for the full list. Grant Funds, Sources and Uses of Project Funds The Port respectfully requests a TIGER grant at $10 million to fully execute the completion of this project by 2019 to transform the South Terminal to dramatically improve the current condition. If grant funding were not awarded at the requested amount, the Port would be required to scale the project, as we do not have enough financial resources to achieve full build-out of the project without federal support. Each of the projects listed below have independent utility. $10 million grant award achieves project goals described in the grant application in its entirety. $5 million grant award would only complete the on-terminal rail investments. Selection Criteria Project Meets Grant Statuary Criteria The South Terminal Intermodal Modernization Project is cost effective (calculated very conservatively the BCA results in 2.5:1 at 7%. 4.8:1 at 3%). As an urban project, the project exceeds the match requirements of funding as the TIGER funding request comprises 18% of the project cost. This project is low risk, and can be under construction well before the required obligation date of September 30, The Port is a proven, steady and reliable federal partner. Federal Wage Rate Certification 5

8 Project Meets Primary Criteria Description State of Good Repair This project removes trucks off the regional and interstate highways, reducing commercial vehicle miles traveled on the highways reducing maintenance requirements for Departments of Transportation along the route. It improves a critical trade facility that if left unimproved, would threaten the future transportation network efficiency, and jeopardize the economic prosperity of the region. The project creates disaster recovery resiliency and additional capacity to support U.S. Naval Station Everett s operations. Economic Competitiveness This project improves the efficiency and reliability of the intermodal movement of cargo to the global marketplace, and enhances the regional surface transportation system allowing for continued global economic competition of Port customers, including support of the nation s largest exporter, Boeing. It addresses the local and regional impact of freight on the general public by converting truck trips to rail. This project improves economic competitiveness of the Port s customers, which in turn results in short and long-term job creation and workforce development opportunities. Quality of Life This project aligns with the City of Everett and Region s landuse planning and economic development strategy. This project modernizes port infrastructure to enhance the efficient intermodal transfer of goods from the ship to be moved inland by rail, improving local and regional freight mobility. It enhances the on-dock terminal rail, in turn, reducing the number of truck trips on congested highways; creates savings in fuel and reduces emissions Through the Port s 2% for public access policy related to capital investments, the public s access to the shoreline will be significantly improved. Creates 382 new direct jobs in the first year; grows to 1,275. Environmental Sustainability This project reduces emissions and energy use from the transfer and intermodal movement of freight by using electricity. Potential Lifetime Hoteling Emission Reductions, tons per year: Percent of Calls NOx (tpy) PM2.5 (tpy) CO2 (tpy) 50% , % ,396 The project is staying within the existing footprint, therefore minimizes additional impacts to the marine environment. Using rail vs. truck, saves 152,000 metric tons of CO2. 6

9 Project Safety Meets Description Removing cargo from the National Highway System achieves a significant Primary Criteria reduction in potential fatal traffic accidents and injuries. It is estimated that State of Good This this project will removes take 423 trucks million off the VMT regional off our and highways, interstate reducing highways, potential Repair reducing highway deaths commercial by 5.1 vehicle over the miles 20 year traveled period on analyzed. the highways will reduce Secondary maintenance requirements for Departments of Transportation. Selection Criteria Further, it improves a critical trade facility that if left unimproved, would Innovation threaten This project the future is preparing transportation the terminal network for cold efficiency, ironing. and Although, jeopardize this the is not regional innovative economic in the industry, prosperity. is innovative for Washington state s non-cruise The seaports. project We creates are taking disaster a concept recovery that resiliency has been and proven additional at larger capacity ports and to support applying U.S. it to Naval our community Station Everett s to ensure operations. our terminal meets standards into Economic This the future project and improves is ahead the of future efficiency regulatory and reliability requirements. of the intermodal Competitiveness Partnerships movement This partnership of cargo starts to the with global the nearby market residents. place, and We enhances work diligently the regional with surface our neighbors transportation to ensure system we will allowing build a for project continued that meets global economic needs, competition but does so in of a Port socially customers, responsible including way. support of the nation s largest exporter, The Port of Boeing. Everett has more than 42 letters in support of this project, It including addresses The the Boeing local and Company, regional shippers, impact of the freight U.S. Navy, on the Congress, general public local by converting governments, truck BNSF, trips higher to rail. education institutions, and many more. The This Port project has improves worked diligently economic to competitiveness coordinate these of improvements the Port customers leverage which in other turn results surface in transportation short and long-term projects job being creation undertaken and workforce by other agencies development (such opportunities. as the City s first/last mile port connector project that is Quality of Life underway). This project aligns with the City of Everett and Region s land-use planning and In 2015, economic the Port development and the City strategy. of Everett worked to implement the first-ever This Marine project Port modernizes Element in the port City s infrastructure Comprehensive to enhance Plan. the This efficient public intermodal planning initiative transfer helped of goods delineate from the the ship importance to be moved of both inland a working by rail. This will waterfront improve and local a recreational and regional waterfront. mobility. Through the Port s 2% for public access policy related to capital investments the public s access to the shoreline will be significantly improved. Creates 382 new direct jobs in Year 1, growing to 1,275 by Year 21. Results of Benefit-Cost Analysis A Benefit-Cost Analysis (BCA) was performed on this project. The results of the project s BCA demonstrate that the project s social benefits exceed the project costs. It determines that the project is likely to deliver its anticipated public benefits at a reasonable cost. Thus, the investment of public funds in the project is beneficial to the nation and the affected populations. The following highlights the findings of the analysis. An Executive Summary of the complete BCA can be found in Appendix A. Click here. Benefits Long Term Quantified Outcomes This project demonstrates a BCA that exceeds 1 and demonstrates that the following public benefits can be achieved at a reasonable cost: 7

10 Long-Term Outcomes State of Good Repair Economic Competiveness Quality of Life Environmental Sustainability Safety Societal Benefits of the Project Maintenance & repair savings due to the reduction of Vehicle Miles Traveled (VMT) on the Freight Network Operating cost savings; job creation Decreased fuel usage by trucks construction and long-term jobs Environmental benefits from reduced emissions due to modal shift from truck to rail, the availability of shorepower and electrified cranes Prevented accidents due to reduced VMT by Trucks Project Readiness Plans are in place to easily meet the requirement to obligate by September The Port has prepared a low-risk, high-benefit project that can quickly move into construction upon obligation of the federal grant funds. The project would be substantially complete in 2019 if funding is awarded this year. 8

11 I. PROJECT DESCRIPTION Current State 2016 Anticipated Completion 2019 The South Terminal Intermodal Modernization Project is a regionally significant multimodal project that will enhance the region s freight mobility, economic vitality and environment. The infrastructure investments will address a freight bottleneck that constrains the regional transportation system s performance and capacity, and limits the efficient logistics chain of the nation s largest exporter The Boeing Company. This transformative investment will help to keep the Washington State economy and transportation infrastructure efficient, safe, competitive and reliable. This project has the potential of opening up new cargo markets to the region, by discharging additional cargo volumes in Everett from our existing shipping lines and transporting this new cargo via rail to the Midwest (this is the basis of our BCA). The described project has independent utility. Its construction allows the Port to meet the 21 st Century demands of serving the larger vessels that our shippers are now using. The wharf strengthening is needed for the intermodal transfer of goods from ship to shore, and the rail infrastructure is needed to stage the cargo for transport to the inland states without creating congestion on the BNSF mainline to the Midwest. The funds will be used to modernize the Port s South Terminal in Everett, Washington by strengthening the terminal to provide for intermodal transfer of cargo and adding on-terminal rail to handle heavier loads being shipped on larger ships. The larger ships are anticipated to off load more cargo at the Port than in the past. Thus, the on-terminal rail facility will be used to move the additional cargo volume by rail instead of adding truck congestion to the local/regional roads and highways. The project will improve transportation choices for freight and improve the mobility of the local and regional population. The on-terminal rail facility allows cargo to be unloaded from the larger ships that are starting to berth at the Port in The cargo can be placed directly onto rail within the terminal. The cargo will then be dispatched to its inland destination, with minimal disruptions to the local road and rail network. This rail option provides shippers with a cost effective transportation option not currently available at the South Terminal. 9

12 Summary of Multi-modal Freight Mobility Enhancements Improvement Current Condition Future Condition Berth Length for Cargo Equipment Roll-on/Roll-off Cargo Berth Dock Strength Gantry Cranes Shore Power Terminal Rail Improvements Warehouse Space 140-feet One (1) 140 ft. (1,000 psf.) 560 ft. (500 psf.) None None 5,000 lineal feet None 700-feet Two (2) 700 ft. (1,000 psf.) foot gauge cranes* Shore power availability 9,000 lineal feet Yes, size to be determined *Gantry cranes not to be acquired with federal funds Companion Projects Click here for a list of companion projects either completed or planned. Project Cost/Schedule Project Elements Costs Completion Total Rail Sidings $3.90 M 2017 $ 3.90 M Warehouse Demo $0.65 M 2017 $ 0.65 M Dock Strengthening (560-feet) $9.90 M 2018 $9.90 M Repair Deck Structure (560-feet) $2.0 M 2018 $2.00 M Crane Rails (700-feet) $5.7 M 2018 $5.70 M Electrical Upgrades/ Shore power $2.7 M 2019 $2.70 M New Warehouse $3.0 M 2019 $3.00 M Est. Public Access Contributions (Port 2% Policy) $0.65M* $0.65 M Construction $4.55 M $20.3 M $3.65 M $28.49 M* Contingency (40%) Mobilization (10%) Escalation (7.5%) Engineering & Planning (7.5%) Contract Admin (5%) Sales Tax (9.5%) Total Estimated Cost $11.32M $2.83M $3.18M $3.37M $2.25M $4.27M $55.50M *Public Access contributions are for improvements within the shoreline, therefore the new warehouse and the rail improvements were excluded from the 2% calculation. 10

13 The $55 million modernization recognizes the interconnectivity and multimodal nature of the nation s transportation system. It creates a transforming project that will improve the efficiency of the regional freight network and provide new jobs for the community. The Port requests $10 million (18%) to fully execute this project to enhance the efficient movement of intermodal cargo to support the nation s largest exporter, and other U.S. industries. Transportation Challenge I Shift in Ship Size We need this project, because by the end of 2016, we will have three of the larger charter ships calling our port on a routine basis. We have reached a point where our infrastructure is no longer keeping pace with 21 st Century demands and industry changes. Transportation Challenge II Aerospace Industry Needs A Modern Terminal The Port of Everett is a strategic seaport that supports nearly $25 BILLION worth of U.S. exports annually, which is the largest custom s district in the state (according to the U.S. Customs and Foreign Trade Division 2014 report). Everett is homeport to Naval Station Everett and The Boeing Company. The Port of Everett supports the largest customs district in the state by export value, and is the second largest container port in Washington State second to the Northwest Seaport Alliance (the ports of Seattle and Tacoma), the state s major commodity ports. Most notably, the Port of Everett serves as an extension of the aerospace manufacturing process, and plays a critical role in the justin-time-delivery schedule. It transports ALL the oversized parts for the 747, 767 (military and commercial), 777, K-C46 Tanker and soon to be 777X airplane programs. It also serve as a backup facility to the 787 Dreamliner. With the new 777X coming online, the Port needs to modernize its facilities to accommodate larger, heavier containers and the vessels transporting them. Additionally, the Port supports the construction, manufacturing and energy sectors by way of transporting various high and heavy breakbulk and roll-on/roll-off cargoes, including military. 11

14 Solutions to these Challenges: We are on an aggressive path to complete the strengthening of the South Terminal as soon as possible to meet our customer s needs. Since 2008, the Port of Everett, a self-operating port, has been working to recapitalize our seaport facilities to meet the growing trend toward larger vessel size to continue to provide critical infrastructure that supports jobs and tax base in our city and region. This project creates additional rail capacity, and an additional roll-on/roll-off cargo berth that will provide enhanced support to military cargo movements. The South Terminal Modernization project was envisioned over a decade ago in the 2004 Master Site Development and Location Agreement between The Boeing Company, the State of Washington and local governments. Why Invest In Everett? The Port of Everett Seaport provides critical infrastructure in our regional transportation network that supports more than 35,000 jobs and $313 million in state and local tax revenue. Everett s seaport is a strategic port that specializes in high-value, over dimensional cargoes. The Port of Everett has also been identified as a recovery port in the region in the occurrence of a man-made disruption or natural disaster near the consumer ports of Seattle and Tacoma (Northwest Seaport Alliance). It also serves as backup support for the U.S. Army s 833 rd Transport Command. In order to provide resiliency for the region and to ensure global competitiveness, the Port needs to have longer berths, a deeper draft and more rail capacity. Completing this project will meet all three criteria. Further, in terms of financing, the Port s close proximity to Naval Station Everett, requires us to look at U.S. Federal Investment exclusively for our seaport because foreign direct investment near the U.S. Navy base poses many challenges. Ladders of Opportunity Improve accessibility for economically disadvantaged populations The South Terminal project does not serve the traveling public; however the project will enhance user mobility and accessibility to the waterfront by contributing an estimated $650,000 (2- percent in capital improvements) to the region s shoreline parks and trails system. The Port of Everett has a voluntary policy that directs 2 percent of waterfront capital improvement funds within the shoreline, that are not public access in nature, to improving public access to Puget Sound s shorelines. 12

15 Further, increasing the opportunity of cargo to move via rail versus truck would decrease the traffic on the streets, which improves bus service and walkability throughout the city. Creates Jobs for the Community The Port s current operations generate more than 35,000 jobs for the region. When completed, the South Terminal Modernization Project is expected to generate about 382 direct jobs. These direct job holders are projected to receive about $28.5 million in personal wages and salaries, for an average annual salary of $74,626. As a result of the local and regional purchases by these direct job holders, 436 induced jobs will be supported in local supplying industries. It is important to emphasize that the re-spending and local consumption impact of $62.6 million should not be divided by the 436 induced jobs to estimate induced income, since the re-spending impact also includes local consumption purchases, and this calculation would overstate the average induced jobs salary. The firms employing the 382 direct jobs are projected to make $15.3 million of local purchases, which in turn is estimated to support 88 indirect jobs. These indirect job holders are projected to earn $3.4 million of wages and salaries annually. Tax Revenues generated will contribute to community vitality Local businesses providing the services to the vessels and handling the containers as well as the surface transportation firms are projected to receive about $56.3 million annually with a throughput of 35,000 TEUs, 300,000 tons of breakbulk cargo and 35,000 tons of cement. A total of $8.9 million of state and local taxes and $17 million of Federal taxes are projected at start-up, (according to a March 29, 2016 Martin Associates Economic Impact Study). The City of Everett and Snohomish County view economic development as an organizing principle of urban activity. People need to have living wage jobs and income to afford to live in a community. Economic development contributes to quality of life: Year N Jobs Direct ,069 1,275 Induced ,133 1,341 Indirect Total 906 1,818 2,144 2,449 2,911 Personal Earnings (Millions) Direct $28.5 $54.1 $63.3 $72.4 $85.5 Re-spending/Consumption $62.6 $118.9 $139.1 $159.1 $188.0 Indirect $3.4 $7.1 $8.4 $9.6 $11.4 Total $94.5 $180.1 $210.8 $241.1 $284.9 Business Revenue (Millions) $56.3 $107.1 $125.3 $141.9 $167.4 Local Purchases (Millions) $15.3 $31.8 $37.6 $42.9 $51.2 State/Local Taxes (Millions) $8.9 $16.9 $19.8 $22.7 $26.8 Federal Taxes (Millions) $17.0 $32.4 $37.9 $43.4 $51.3 Fed Tax Direct Only (Millions) $5.1 $9.7 $11.4 $13.0 $15.4 services, facilities, jobs, urban design and other features that makes the community a place where people want to live and work. A healthy economic environment requires a long-term vision of the future that is flexible enough to serve the community in periods of growth and recession and is open to periodic review and refinement. 13

16 One of the county s Economic Development goals is to: Provide opportunities for job creation through promoting the expansion of existing and future potential port and airport industries and industrial areas. Snohomish County has significant economic advantages and opportunities including: a superior deep water port, rail facilities, airports, regional transportation nodes all of which position the county competitively for national and international trade renewable resources, leading edge industries a highly skilled business management and labor force, a fertile environment for the development of businesses and industries in support of the region s advanced manufacturing and high-tech employers, and high quality of life that makes Snohomish County an attractive and desirable location. Snohomish County experienced relative job losses that exceeded that of the state of the nation in 2009 and It has also experienced above average job creation by comparison during the early phase of the economic recovery. All private sector industry groups have reported net employment growth since the recession (with recovery starting in 2010 for most industries). Generally speaking, growth was highest at the start of the recovery. Total non-farm employment expanded by 3.2 percent from 2010 to 2011 and by another 4.1 percent in By comparison, the past couple years employment growth rates have been more modest: 1.2 percent in 2013 and 1.6 percent in Since 2010, the unemployment rate has also been declining steadily. In January 2016, the preliminary not seasonally adjusted unemployment rate reported for Snohomish County was 5.7 percent compared to the national average of 4.9 percent. The primary driver of Snohomish County s early recovery was the manufacturing sector, specifically the aerospace products and parts manufacturing industry. Employment in aerospace expanded rapidly in 2010 and 2011, peaked in late 2012 and declined through 2013 and into Over the past couple years, manufacturing employment has slowed, changing the industrial signature of the local recovery. Despite the declining net number of manufacturing jobs, Boeing has been ramping up production schedules. Manufacturers continue to hire, as they face challenges associated with an aging workforce. It is worth noting that, despite recent declines, jobs in manufacturing accounted for 23 percent of total non-farm employment a higher percentage than had been observed prior to the recession. Although forecasts project significant future job growth in the service sector, traditional industrial and commercial development represent a substantial part Support economic development by promoting education and training opportunities for the work force and aligning human service delivery with employment opportunities. Snohomish County 14

17 of the economic future of Snohomish County. This type of development requires substantially greater infrastructure availability and faces substantial scrutiny by the community due to its real or potential impacts on the environment. Finding ways to provide for and encourage this development while maintaining the quality of the environment, minimizing the impact on infrastructure, and avoiding pricing industrial and commercial development out of this market, is an important challenge. Although the Port s charter does not include social services, the Port works closely with the City of Everett and Snohomish County to ensure that the Port endeavors to support the economic vitality of the community through their project design and public outreach efforts. The South Terminal Modernization project aligns with both these community goals as it will generate new jobs as well as opportunities of workforce development while improving mobility throughout the community by reducing traffic that can hinder citizens, especially those without cars getting to their workplaces, schools and medical facilities in a safe and timely manner. Snohomish County Blueprint for Education, Workforce and Economic Development The Port of Everett is an economic development agency. By state sanction, economic development is its primary purpose. The Port employs a certified economic developer to support job creation, retention and recruitment of businesses and industries, and property development. She and other staff participate in a number of forums related to economic development that lead to collaboration with local colleges and universities, advanced laboratories, and other government agencies with economic development programs. Recent efforts included a seminar offered through a collection of federal agencies to promote small business exporting; development of pre-commercialization and research and development in the area of advanced composites; work to explore the development of alternative energy plants, support of the maritime trades and preserving the commercial fishermen workforce, and a partnership with Everett Community College to provide a center of education for advanced oceanic research. The Port further works with area universities to provide teaching opportunities through paid internships to students with interest in marine, trade, engineering and other subjects. University of Washington Washington State University Everett Community College II. PROJECT LOCATION Street Address: 3410 Terminal Avenue; Everett, WA The Port of Everett is a natural deep-water port located 25 miles north of Seattle on the Puget Sound, and is adjacent to the homeport for Naval Station Everett. The project is located in Everett, Washington, which is a metropolitan area with a population in Everett (2014) of 106,736, a median household income of $69,443, personal per capita income of $31,782, an unemployment rate of 6.3% and individuals living below poverty at 18%. Click here for area map. 15

18 The project is situated at the south end of the Port s existing deep-water marine terminal area. It lies to the west of downtown Everett, Washington, and is bounded by the BNSF Railway mainline tracks to the east. The project area has direct access to BNSF s mainline and can be accessed by truck using Terminal Avenue, with connection to I-5 via the West Marine View Drive truck route or State Route 529 (Everett Avenue). Click here for full map. Geo-Spatial Data NE point: 47 58' 17.51" N, ' 43.33" W SE point: 47 58' 24.59" N, ' 48.06" W NW point: 47 58' 34.30" N, ' 30.46"W SW point: 47 58' 32.70" N, ' 24.00" W III. PROJECT PARTIES The South Terminal Intermodal Modernization Project has broad-based support. The stakeholders include: The Boeing Company, shippers, local governments, higher education institutions, and many more. We have received support letter from many of our partners including: Congressional offices, The Boeing Company, the U.S. Navy, the City of Everett, Snohomish County, the Puget Sound Clean Air Agency, University of Washington, Washington State University, Everett Community College, Snohomish County PUD, Naval Station Everett, five of our shipping lines, the International Longshore and Warehouse Union Local 32, the Washington Public Ports Association, Economic Alliance Snohomish County, and more. Click here for the full list. 16

19 Aerospace Partnership The Port of Everett is an essential element of this supply chain, as its seaport transports 100 percent of the oversized aerospace parts for the 747, 767 and 777 airplanes, and serves as a backup for the 787 Dreamliner current supply chain. Video: Port s role aerospace logistics chain. Aerospace is a priority cluster for workforce development and education within our community. Airplanes and aerospace parts are among Washington State s top imports and exports. Boeing employs more than 40,000 workers at its Everett site. In addition to Boeing, Snohomish County is home to more than 170 aerospace suppliers, and is the second most trade-dependent county in the nation, with 3 of 5 jobs tied to trade. Boeing s Everett manufacturing facility is the largest building in the world by volume, and includes 472 million cubic feet of space. Its footprint covers 98.3 acres. The site has grown to 1,025 acres, including 215 acres of paved yards and parking, and 282 acres of building area. IV. Grant Funds and Sources and Uses of Project Funds a.) Funding Request The Port is requesting $10 million (18%) in TIGER funding for this $55 million project. b.) Availability and commitment of all committed and expected funding On November 16, 2015, the Port Commission approved a capital plan of $312.6 million for its number one ranked initiative Preparing for Larger Ships, which includes this project. The chart (page 18) assumes success of the grant applications being submitted during the 2016 grant cycle. Per the chart below, 54% of the project would be completed with federal funds if both grants are awarded. c.) Prior Federal funds requested: In 2009, the Port applied for a $43.1 million TIGER grant for this project. The application was unsuccessful primarily due to the status of environmental review and engineering progress at that time. Since 2009, the Port has addressed these project shortfalls, and is currently prepared to deliver the project on an aggressive schedule. 17

20 To demonstrate the Port s ability to successfully secure and be a good steward of grant resources in its efforts to implement its 2008 Marine Terminals Master Plan, of which this project is a part, a history of successful fundings can be found in Appendix C. Type of Funding Source of Funding Amount Status % FASTLANE Federal $20,000,000 Requested 36% TIGER Federal $10,000,000 Requested 18% Federal $30,000,000 54% Dept. of Commerce State $ 970,000 Committed 2% Port of Everett Port $24,550,000 44% State and Local Match 46% Funding Sources Port of Everett WA Dept of Commerce FASTLANE Request TIGER Request Total Project Funding Total Federal Total Local Total Project Funding SOUTH TERMINAL MODERIZATION PROJECT Amount Status $ 24.5 Committed $ 1.0 Committed $ 20.0 Requested $ 10.0 Requested $ 55.5 Total Project Cost $ % $ % $ % Purpose FE, Environmental, and Construction Construction Construction Construction Project Budget CN FE/ CN Engineering Contingency Total Cost in Millions % $ % $5.6 10% $ % $ % Project Funding in Millions % FASTLANE Request $ % TIGER Request $ % Local Match $ % $ % d.) Amount Requested: Scalability of Project The proposed project scope and investment would create independent utility and value to the global economy, and create additional infrastructure investments to improve efficiency of this intermodal facility and improved mobility throughout the region. 18

21 If grant funding were not awarded at the requested amount ($20 million), the Port would be required to scale the project, as we do not have enough financial resources to achieve full buildout of the project back without federal support. $10 million grant award achieves project goals described in the grant application in its entirety. $5 million grant award would only complete the on-terminal rail investments. V. SELECTION CRITERIA i.) Primary Selection Criteria a. State of Good Repair As discussed in the Executive Summary, the project improves the efficiency and reliability of the National Highway System by reducing VMT on the local and regional roads and highway due to the conversion of truck moves to rail. This modal switch will occur on dock, using the project s on-dock intermodal rail yard. The reduction of VMT on the Highway System will reduce the maintenance required on the roads. Thus, increasing the state of good repair for all states along the Great Northern Coalition (GNC) corridor where the cargo is moved by rail vs. truck. The project improves a critical trade facility, that if left unimproved, would threaten the future transportation network efficiency and jeopardize the economic prosperity of the region. Further, the project creates disaster recovery resiliency and additional capacity to support U.S. Naval Station Everett s operations. The cost to modernize the terminal and install on-terminal rail has been determined to be the correct cost-effective approach versus a complete terminal demolition and replacement. b. Economic Competitiveness The availability of this on-terminal rail facility will improve the economic competitiveness of its users, improving global competitiveness for the region. An effective transportation network is critical to maintaining our economy, environment and quality of life. The Washington State Department of Transportation s major priority over the next 10 years is Moving Washington. 19

22 The Port of Everett s South Terminal project is consistent with this directive. This project enables the Port to accommodate larger vessels that are trading in the Pacific and is essential to regional long-term stability and responsible trade growth. The Port s project will provide excellent connections between ship and rail, and enhance freight mobility in our region. This project is vital to preserving the functionality of our international trade facilities, which are essential to the support of our local aerospace industry. According to the 2004 Project Olympus Agreement, the South Terminal project represents a critical improvement for use by The Boeing Company and other suppliers to support just-in-time delivery to the Boeing Everett Plant. The current infrastructure deficiency precipitates the need for this investment. Click here for the Boeing Support Letter. The project improves the Port s intermodal freight options by increasing its capacity to load/ unload cargo directly to the regional rail system. As regional traffic congestion grows, rail freight can reduce traffic congestion and street maintenance by diverting large trucks and heavy cargoes from the local and regional road system. It is estimated that the South Terminal project will reduce trucking traffic by 6,500 trips annually. This project improves economic competitiveness of the Port customers by reducing operating costs which in turn results in the creation of both short and long-term jobs and associated workforce development opportunities. c. Quality of Life This project has been developed in coordination with the City and the County s land-use and economic development initiatives. The Port is an anchor for the community. Completion of this project will provide transformative, positive and long-lasting quality of life elements for our community. With this project, the air will be cleaner, the traffic congestion reduced, and jobs will be created. Further, this project will provide an economic environment for our disadvantaged residents to see a stronger economy in the city which will enhance their ladders of opportunity to move into higher paying jobs. This project is designed to do no harm to the neighbors. Taking trucks off the local streets will provide better connectivity across the city for both motorized and non-motorized vehicles. Additional quality of life benefits of the project include improved public access to the shoreline through the Port s 2% for public access policy related to capital investments, 382 new direct jobs created in Year 1, growing to 1275 by Year 21 and improved air quality from the reduction in ship emissions and the reduction of commercial vehicles traveling through the City. Improved Air Quality by Cold Ironing the Ocean-going Vessels The South Terminal Modernization project includes providing shore-side power and equipment to allow shore power capable vessels to use shore power ( cold iron ) while at berth, significantly reducing hoteling emissions. The emission reductions will be realized when vessels receive power needed for house load while at berth from the shore-side power system, shutting down their auxiliary engine(s). Table 1 summarizes the assumptions used for the activity and emission factors. The dwell/hoteling time is based on projected assumptions for all vessels calling the terminal from 2019-on. The average auxiliary engine load at berth is based on typical vessels that presently call 20

23 the terminal. The control factor for cold ironing is used to account for time needed to connect and disconnect the power supply, during which the auxiliary engine(s) continue to operate. Load at Berth (kw) Table 1: Projected Vessel Activity and Emission Factors Sulfur Control NOx Content of Factor for (g/kw-hr) Fuel Used cold Annual Hoteling Time (hours) PM2.5 (g/kw-hr) CO2 (g/kw-hr) ironing 900 1, % S At this time, it is unknown whether all the vessels calling the South Terminal will be shore power ready by To account for this uncertainty, the estimated emissions reductions were calculated using two assumptions, half of the calls at the South Terminal will use shore power and also 100% of the calls. The estimated emission reductions are presented to serve as an example of the potential emission reductions that may be achieved per year if this project were to be completed successfully and the vessels calling agreed to retrofit their vessels and use shore power. Table 2: Potential Annual Hoteling Emission Reductions, tons per year Percent of Calls NOx (tpy) PM2.5 (tpy) CO2 (tpy) 50% % It should be noted that if larger container vessels were to call the terminal, as is expected, there may be higher potential emission reductions since the larger vessels have higher engine loads. To be conservative in the estimate, the higher engine loads were not used for this calculation. For lifetime emission reductions, it was assumed the new shore power infrastructure will have a useful life of 30 years. The annual emission reductions were multiplied by 30 to estimate the lifetime emissions. Table 3: Potential Lifetime Hoteling Emission Reductions, tons per year Percent of Calls NOx (tpy) PM2.5 (tpy) CO2 (tpy) 50% , % ,396 d. Environmental Sustainability The Port of Everett has a strong commitment to sustainability and greenhouse gases reduction. In today s world with global warming, it is particularly important for the Port to employ sustainable operations while meeting the public need for economic investment. The Port is making great progress in this area; current programs include deployment of clean energy vehicles, a green purchasing program, an energy saving program and structured approach (Environmental 21

24 Management System) for managing environmental responsibilities across all of the Port s development projects and operations. This project will reduce air emissions through the use of rail and the electrification of the terminal for shorepower. Specifically, the grant will be used to modernize the South Terminal s outdated infrastructure while capitalizing and building on progressive forms of best management practices for energy and operations. The reduction of commercial trucks passing through the city and county will improve public health in the region due to the improved air quality that will result from the decreased fuel used by commercial vehicles. In an effort to reduce emissions from diesel fuel, ports are setting up their terminals for shoreport-to-ship power, also known as cold ironing. Cold Ironing is one of the most effective methods to achieve reduced emissions at a port terminal. The U.S. Navy has been using this for more than a decade, yet it is still a fairly recent innovation for ports. The Port s project includes the infrastructure required to perform cold ironing (i.e. hoteling of the ship while at berth) and noticeably reduce diesel emissions and ship engine noise for the nearby residential community. This feature of the project has earned the support of EarthCorps, the Puget Sound Clean Air Agency and the Snohomish County PUD. The innovative inclusion of cold ironing will fall under the environmental auspices of our Environmental Management System (EMS). The EMS addresses Port operations and business and looks to streamline these operations as they interface with our surrounding environment, through implementation of best management practices. e. Safety This project would allow cargo to move more efficiently to and from the Port via rail. This is estimated to remove 6,500 trucks from the local and regional road network. This improvement would reduce the percentage of cargo moving by truck on local arterial streets, therefore reducing the frequency of surface transportation-related accidents. The Port s marine terminal area is already served by a grade-separated rail crossing (the California Street over-crossing), which was funded by local, state, and federal grants, as well as private sector contributions (BNSF Railway). The South Terminal project is a natural extension of that safety-driven infrastructure investment. In addition, the modern dock would greatly increase safety for longshoremen and Port maintenance personnel during vessel loading and unloading operations. Currently, the Port is partnering with the City of Everett to construct a significant roadway improvement to help the ingress and egress of trucks to the highway. This project will greatly improve the safe and efficient transport of goods out of the Port facilities. It is estimated that with the conversion to rail, 429 million VMT 22

25 will be removed from the National Freight Highway Network, saving approximately 5.1 potential highway fatalities over the 20 year analysis period. ii.) Secondary Selection Criteria a) Innovation This project is providing shore power capabilities to our terminal. Preparing the terminal for cold ironing by vessels berthing at our docks. Although, cold ironing is no longer innovative in the industry, it is innovative for our community. We are taking a concept that has been proven at larger ports and applying it to our community to ensure our terminal meets maritime industrial standards into the future. A second innovation came when the Port, city of Everett, Snohomish County, State of Washington and The Boeing Company came together to sign the 2004 Project Olympus Agreement to keep airplane production strong in Washington State and Snohomish County. That agreement foresaw the need to modernize the South Terminal in the future to meet critical delivery schedules for Boeing and other aerospace suppliers as the aerospace industrial cluster in the region expanded over the next twenty to thirty years to meet global demand. Project Olympus refers to The Boeing Company s project for the siting of the manufacturing facilities for the 7E7. Washington was able to secure the project with a package of incentives that included a $3.2-billion, 20-year tax break for the aerospace industry (applicable only if the state landed the 7E7 plant), plus a 5-cent gas-tax increase to fund $4.2 billion in state transportation improvements. Washington State Lawmakers also approved unemployment insurance and workers' compensation reforms and provided $15.5 million for a Port of Everett rail-barge dock. As part of the agreement, the Port provided Boeing preferential use of port facilities and identified the need for facility improvements to meet the future requirements of the oversized aerospace parts. b) Partnership As discussed earlier in this application, the Port has many strategic partnerships for which this project is based. The partners include the local community, port customers, regional higher education facilities that will educate future port workers, our regional council, clean air coalitions, and elected officials from all levels of our government. This partnership starts with the nearby residents. We work diligently with our neighbors to ensure we will build a project that meets the economic needs, but does so in a socially responsible way. The Port of Everett has more than 42 letters in support of this project, including The Boeing Company, shippers, the Navy, Congress, local governments, BNSF Railway, higher education institutions and many more. 23

26 The Port has worked diligently to coordinate these improvements to leverage other surface transportation projects being undertaken by other agencies (such as the City s first/last mile port connector project that is underway). In 2015, the Port and the City of Everett worked to implement the first-ever Marine Port Element in the City s Comprehensive Plan. This public planning initiative helped delineate the importance of both a working waterfront and a recreational waterfront. VI. RESULTS OF BENEFIT-COST ANALYSIS Based upon the BCA on page 25, the project is anticipated to deliver the following benefits at a reasonable cost based upon a very conservative amount of cargo volume converted to rail from truck using the new on-terminal rail sidings after the opening of the modernized terminal in late The BCA below assumes a full year of benefits starting in Costs are based upon the construction costs, project schedule and annual maintenance costs post construction for the facility in each year of the analysis. The BCA analysis generates a positive public benefit at both a 7% (2.5:1) and 3% (4.8.1) discount rate. Click here for a full discussion of the Benefits Cost Analysis in Appendix A. 24

27 Benefit to Cost Ratio Selection Criteria Social Benefit Inputs Value State of Good Repair Reduction of maintenance on US Roads & Hwys, Consistent with State and Regional Plans Maintenance, preservation and upgrade savings of Highways 429 million VTM reduced off the highways Discount Rate 7% Monetized Value Discount Rate 3% $ 19,841,092 $ 33,330,984 Economic Competiveness Quality of Life Operational cost savings Fuel savings due to reduced miles traveled by cargo using Rail from the terminal vs. Truck Savings of rail transport vs. truck transport Gallons of fuel saved 569 million ton savings per mile (truck vs. rail) $ 15,581,270 $ 26,174, million gallons of fuel saved by reducing miles traveled with modal shift to Rail $ 40,138,465 $ 67,428,472 Environmental Sustainability Environmental Sustainability Environmental Sustainability Environmental Benefits from Reduced Emissions by modal change to rail Environmental Benefits from Reduced Emissions achieve by using electric cranes vs. diesel cranes Environmental Benefits from Reduced Emissions achieved by cold ironing Reduced fatalities from reduction of VMT CO 2 cost savings CO 2 cost savings CO 2 cost savings Fatality cost savings of 5.1 fatalities 407,000 metric tons of CO 2 saved Not Calculated Not Calculated $ 15,044,154 $ 15,044,154 Safety $44.5 million saved $ 17,142,704 $ 28,797,970 Total Cost ($42,935,110) ($35,489,029) Total Benefits $107,747,684 $ 170,776,501 Net Present Value $ 64,812,575 $ 135,287,473 Benefit to Cost Ratio 2.5:1 4.8:1 VII. PROJECT READINESS ii.) a.) Technical Feasibility The project is ready to begin construction. Both the South Terminal and the on-dock rail are technically feasible. Final design of the South Terminal is being prepared. The design of the ondock rail has been completed by working closely with BNSF. The design team foresees no 25

28 complicating or project ending factors. State and federal environmental requirements will be met by July 2016, so that when funded, USDOT could obligate funding well in advance of September 30, Project risks have been identified and mitigation strategies incorporated (see page 28). The project schedule illustrates that contract bid documents will be finalized and the on-dock rail ready for bid September 2016 and the terminal ready for bid in March b.) Financial Feasibility The project is financially feasible. The Project Budget is below. The Port Commissioners have provided a resolution to provide the matching funds of $25.55 million to complete the project upon obligation of the requested grant funding. Project Budget FASTLANE Project Element Detail Contract 2% Public Engineering Total Base Constr. Contingency Mobilization Escalation Sales Tax Admin. 5% Access & Permitting Element % of Total Other Cost (A) 40% (B) 10% C 7.5% (D) 9.5% E (F) (G) 7.5% (H) Cost Cost NSFHP Federal Non-Federal Double Rail Siding 3,900,000 1,560, , , , , ,656 7,672, % 7,672,275 Warehouse Demo 690, ,000 69,000 77, ,699 55,631 83,447 1,357, % 1,357,403 Dock Strengthening (560 feet) 9,900,000 3,960, ,000 1,113,750 1,516, , ,275 1,197,281 19,795, % 17,480,306 2,314,744 Repair Dock Structure (560 feet) 2,000, , , , , ,250 64, ,875 3,999, % 2,519,694 1,479,306 Crane Rails (700 feet) 5,700,000 2,280, , , , , , ,344 11,397, % 10,000,000 1,397,150 Electrical Upgrades/Shore power 2,700,000 1,080, , , , ,688 87, ,531 5,398, % 5,398,650 New Warehouse 3,000,000 1,200, , , , , ,813 5,901, % 5,901,750 Total 27,890,000 11,156,000 2,789,000 3,137,625 4,272,399 2,248, ,675 3,372,947 55,521, % 20,000,000 10,000,000 25,521,278 Asset Management Approach- Demonstrates our ability to manage grants The Port of Everett has an exemplary financial management history. In 2015, the Port of Everett earned its 18 th consecutive clean audit from the Washington State Auditor s office. The Port of Everett has the ability to issue municipal bonds to fund capital expenditures and has a Moody s revenue bond rating of A1 and a General Obligation Bond rating of AA3, and the debt capacity to finance capital expenditures that may be incurred prior to quarterly grant reimbursements. All capital expenditures are evaluated based on our mission of growing the economy. In order to meet this goal and ensure sustainable performance, the Port has a capital improvement planning program, which balances and prioritizes the capital investment needs of the Port s three lines of business (marine terminals, marina, and properties). This program consists of an annual budgeting process requiring a detailed budget and justification (project charter) for all anticipated capital expenditures over the next five-year period. These projects are then grouped by Port Commission Strategic Initiative in order to directly tie the importance of an individual project with our strategic development priorities. After internal review by Port staff, all the initiatives are presented to the Port Commission for their consideration and approval. This project is included in the Preparing for Larger Ships initiative the Commission has ranked it as the number one priority. The Port staff holds monthly meetings with its asset management team to continually track the current and future capital needs of all Port projects. Projects scope, schedules and budgets are reviewed based on updated engineering and project information received in the intervening period. Investments are driven and performance is measured in context of the Port s three bottom lines: economic, financial (including rate of return) and 26

29 community/environmental benefits. In the marine terminal area, projects are considered based on their long-term financial costs and benefits, as well as their impact on adjacent neighborhoods. Appropriate markets and niche areas with growth potential are identified and investments in the marine terminal area are considered based on those business opportunities. The marine terminals line of business generated operating income of $3.31 million in 2013, $3.35 million in 2014, and $5.03 million in c.) Project Schedule Calendar Year by Quarter Project Element Terminal Rail Construction South Terminal PE Engineering Construction September 30,2019 TIGER funding obligation deadline *The Port understands this schedule is aggressive based upon the ability to obligate the Federal Funds but wants to demonstrate the Port s readiness pending funding becoming awarded and obligated. d.) Required Approvals 1. Environmental Reviews and Permits a. NEPA Status of the project In 2008, the Port of Everett, in its capacity as lead agency under State Environmental Protection Agency (SEPA), conducted a conceptual-level environmental review and issued a Determination of Non-Significance for its Marine Terminals Master Plan (MTMP). The MTMP was subsequently adopted by the Port Commission in July For the proposed project, the Port will need to conduct a project-level SEPA and NEPA environmental review prior to issuance of applicable agency permits and commencement of construction. The Port is underway with these SEPA and NEPA Environmental Review processes, and anticipates that both review processes will be completed by late July b. Information on reviews, approvals and permits by other agencies The Port must obtain local, state and federal permits prior to construction of the proposed project. These permit milestones are accounted for in the project schedule, which anticipates issuance of permits by January Permits anticipated include US Army Corps of Engineers Section 10 authorization under a Nationwide Permit No. 3, State Fish and Wildlife Hydraulic Project Approval, Coastal Zone Management Program consistency, City of Everett Substantial Development Shoreline permit, and this project is entirely consistent with the City of Everett's Shoreline Master Program and the City's Zoning Code. 27

30 The Port has recently and successfully undertaken similar Marine Terminals projects through the planning, design, permitting and construction processes. For example, a 140 x110 section of the South Terminal wharf was strengthened to allow for its use as a ro-ro dock. The ro-ro dock design is similar to what is proposed for the rest of the wharf s length (560-feet). Environmental review went smoothly and state, local and federal permits were obtained in a timely manner, all without objection or appeals. Similarly, the Port will rely on lessons learned from past experience during the process of planning for, and ultimately installing two, 50-foot gauge cranes at the Pacific Terminal located north of the current project site. c. Environmental studies or other documents As part of the Environmental Review and permit processes, the Port anticipates preparing additional documents to support review of the project. Such additional studies may include a Biological Evaluation or Assessment addressing impacts to the marine environment and species and their habitats listed under the Endangered Species Act (ESA); Cultural and Historical Resources documentation to satisfy Section 106 requirements; a Mitigation Plan to address impacts to the marine environment; a View Impacts Analysis to identify visual impacts to neighboring properties; and a Noise Study to analyze potential noise impacts to nearby neighborhoods. d. Discussions with appropriate DOT modal administration field offices The Port has been in multiple discussions with our regional Maritime Administration Official. We are in alignment on the need for public engagement. As an example of our local outreach, we held a version of the suggested design charrette to determine the community s preference on the terminal attributes including, the specific paint colors that they would like to see the electric cranes. This session was held early in our design process. We are committed to include the public in future decisions as appropriate as we move from our present 30 percent preliminary design into final design. 2. Legislative Approvals This project does not need any legislative approvals as the Port is a stand-alone quasi-public entity under Washington state law. 3. State and Local Approvals The Port of Everett, as a special purpose district, has its own governing board and is independent of the State of Washington, City of Everett and Snohomish County. Therefore, legislative 28