7b presentation

ITEM NO: 7b Supp 1
DATE OF MEETING: Sept 26, 2017 
2018 Preliminary Corporate
Budget 
Commission Briefing 
September 26, 2017 


1

2018 Key Initiatives/Budget Drivers 
Increased resources to implement and support Commission priorities 
Additional staff and consulting resources to implement the Energy & Sustainability Committee
recommendations. 
New position to support development of a Port wide Equity Program. 
Continuation of High School Internship program  82 interns budgeted 
Expand public outreach to increase awareness of Port's contribution to
regional economic vitality and to enhance relationship with surrounding
communities 
Additional Public Affairs outreach efforts in 2018 including a "State of the Port" breakfast. 
Strengthen Centers of Expertise to leverage capabilities Port wide 
Additional resources for Business Intelligence, Security & Preparedness, and Finance & Budget. 
Support division priorities and business needs 
Police Department adding staff to enhance Airport security. 
HR, CPO and AFR adding staff to meet growing service demands. 
Portions of Capital Development and CPO staff moving to SeaTac Office Center due to Airport
Office Building space constraints. 
Corporate budget driven by Port wide initiatives and growth needs 
2

Corporate Expense Budget Overview 
2016    2017    2017    2018   Budget Change Budget to Forecast
(in $000s)                   Actual   Budget   Forecast   Budget     $ %      $ %
Core Support Services           69,196   76,663   75,479   80,072    3,410   4.4%   4,594        6.1%
Police                      23,045    23,884    23,689    27,065    3,181   13.3%    3,376       14.3%
Capital Development            12,218   25,463   21,164   26,241     778   3.1%   5,077       24.0%
Environment & Sustainability        6,712    11,932     9,569    11,304     (628)       -5.3%    1,736       18.1%
Total                   111,172   137,942   129,900   144,682    6,740   4.9%   14,782        11.4%
2018 budget includes $3.1M of "non-recurring" initiatives carrying over
from 2017 budget. 
$6.9M in budget additions including 25.4 new FTEs and $924K for rent
and moving costs to SeaTac Office Center. 
Corporate budget supports Commission priorities and division growth
3

Summary of Proposed New FTEs 
Environment & Sustainability  3 new positions focused on Airport energy
conservation, Maritime climate protection and Maritime sustainable
development principles 
Human Resources  Equity Program Manager and Talent Acquisition
Representative 
Police  12 new Officers to provide enhanced Airport Terminal security 
Central Procurement  2 new Contract Administrator positions 
Aviation Finance & Budget  New Manager and Administrative Assistant 
Accounting & Financial Reporting  Capital Services Accountant 
Internal Audit  IT Auditor 
Commission Office  Commission Records Staff Assistant 
Interns  1.4 FTE in Human Resources, Executive and Maritime Finance & Budget 
Staff Additions to Support Commission Priorities and Division Growth 
4

2018 Corporate FTEs Summary 
Description                 FTEs  Notes
2017 Budget                 870.1
Changes in 2017:
Mid-Year Approvals              15.5  See detail in the following slide
Eliminated                      0.0
Transfer                      -1.0  Maritime ENV to Habitat
2017 Baseline                  884.6
2018 Budget Changes:
Eliminated                     -1.6  All temporary hires in 2017
Proposed New FTEs            25.4  See detail in the following slide
Net Change                23.8

Proposed FTEs for 2018           908.5

Proposed 2.7% increase in FTEs compared to 2017 Baseline 
5

Proposed 2018 New FTEs--Detail 
No. Dept                 Description                                 FTEs
1  Police               Police Officer                               12.0 
2  Commission Office         Commission Staff Assistant - Commission Records            1.0 
3  Human Resources         Sr. Talent Acquisition Representative                    1.0 
4  Human Resources         HR College Intern                             0.6 
5  Human Resources         Equity Program Manager                         1.0 
6  Central Procurement Office     New Contract Administrator Positions- CPO Construction         1.0 
7  Central Procurement Office     New Contract Administrator Positions- CPO Service Agreements     1.0 
8  Internal Audit            Sr. Internal Auditor                             1.0 
9  Accounting & Financial Reporting Capital Services Accountant III                       1.0 
10 Executive Office           College Intern                                 0.5 
Subtotal                                                           20.1 
11 Aviation Environmental        Environmental Review and Permitting Staff                  1.0 
12 Maritime Env. & Planning      Maritime Climate Protection Program Manager               1.0 
13 Maritime Env. & Planning      Sustainability Development Management Specialist             1.0 
14 Aviation Finance & Budget     Manager, Aviation Finance & Budget                     1.0 
15 Aviation Finance & Budget     Administrative Assistant                            1.0 
16 Maritime Finance & Budget     Graduate Intern                                0.3 
Subtotal                                                           5.3 
TOTAL                                              25.4 
New FTEs additions support the Port's strategic goals and division needs 
6

2017 Mid-Year Approved FTEs 
No. Department            Description                    FTEs
1  Legal                Senior Manager, Workplace Responsibility       1.0 
2  Internal Audit            Port Contract Compliance Program Coordinator.    1.0 
3  Police                K9 Handlers                      3.0 
4  Security & Preparedness      Security Duty Officer                  1.0 
5  Risk Management          College Intern                      0.3 
6  Engineering             Utility Located Technician               1.0 
7  Engineering             PLA Document Specialist                1.0 
8  Engineering             College Interns                     2.3 
9  Engineering             Resident Engineer 3                  1.0 
10 Engineering             Construction Inspectors                 2.0 
11 Engineering             Project Assistant                     1.0 
12 Maritime Env. & Planning      Backfill a position transfer to Habitat           1.0 
TOTAL                                      15.5 

New FTEs driven mainly by the needs of operating divisions 
7

2018 New Budget Requests/Additions 
Request  Request    App'd   App'd
2018 Budget Additions (in $000s)               Amount    FTEs    Amount    FTEs
Executive Office                             140         0.5        28     0.5
Commission Office                         82      1.0       82     1.0
Legal                                   9      0.0        9      0.0
Public Affairs                                339          0.0       268      0.0
Human Resources                     1,077     5.6      620    2.6
Labor Relations                             39      0.0       39     0.0
Internal Audit                                 356          1.0       356      1.0
Office of Strategic Initiatives                      1,049       0.0        649      0.0
Central Procument Office                      728         4.0       460     2.0
Police                                 2,693     18.0     1,795    12.0
Security & Preparedness                     349         0.0      220     0.0
Accounting & Financial Reporting                 187         1.0       147     1.0
Finance & Budget                         240        2.3      240     2.3
Business Intelligence                          210         1.0        73     0.0
Subtotal                            7,499     34.4     4,987    22.4
Capital Development                       2,147     20.0     1,523     0.0
Environment & Sustainability                   4,031      4.0      3,507     3.0
TOTAL                      13,678    58.4   10,017   25.4
The 2018 new budget additions support the Port's strategic goals and initiatives 
8

Corporate Budget by Department 
2016    2017    2017    2018     Budget Change Budget to Forecast
(in $000s)                       Actual    Budget   Forecast   Budget      $ %      $ %
REVENUES
Total Revenues                1,186     367     367     182     (185) -50.5%    (185)  -50.5%
EXPENSES
Executive                       2,185     1,944     1,764     2,001       57   2.9%     237      13.5%
Commission                   1,569    1,830    1,748    1,984      154   8.4%    236     13.5%
Legal                         3,365     3,288     3,504     3,617      329   10.0%    114      3.2%
Public Affairs                        6,033      7,847      7,683      8,308       461    5.9%     625       8.1%
Human Resources               7,001    9,035    8,825    9,645      610   6.8%    820      9.3%
Labor Relations                    1,268     1,313     2,048     1,371       58   4.4%    (677)  -33.0%
Internal Audit                        1,455      1,770      1,713      1,828        58    3.3%     115       6.7%
Office of Strategic Initiatives              8,356      6,264      5,964      6,648        384    6.1%     684       11.5%
Police                          23,045    23,884    23,689    27,065      3,181   13.3%    3,376       14.3%
Security & Preparedness              1,420     2,065     1,984     2,394      329   15.9%    410      20.7%
Contingency & Other                 820      250      250      250       -    0.0%     - 0.0%
Finance
Accounting & Financial Reporting       6,550     7,763     7,435     8,148       384    4.9%     712       9.6%
Information & Comm. Technology      20,158    22,492    22,345    23,308      816   3.6%    963      4.3%
Finance & Budget               4,810     5,873     5,499     5,828      (45)  -0.8%    330      6.0%
Business Intelligence               1,004     1,458     1,423     1,543        85    5.8%     120       8.4%
Risk Services                   3,202     3,470     3,293     3,200      (271)   -7.8%     (94)   -2.8%
Subtotal                     35,725    41,057    39,996    42,026       969    2.4%   2,031        5.1%
Total Before Cap Dev and Env       92,241   100,547    99,167   107,137     6,590   6.6%   7,970       8.0%
9

Corporate Budget by Department 
2016    2017    2017    2018     Budget Change Budget to Forecast
(in $000s)                       Actual    Budget   Forecast   Budget      $ %      $ %
EXPENSES
Total Before Cap Dev and Env       92,241   100,547    99,167   107,137     6,590   6.6%   7,970       8.0%
Capital Development
Engineering                   4,493     7,020     7,081     7,792      772   11.0%    711      10.0%
Port Construction Services           3,488     4,079     3,949     5,685      1,607   39.4%    1,737       44.0%
Aviation PMG                  2,823    13,005     8,737    10,977     (2,027)  -15.6%   2,240       25.6%
Seaport PMG                 999     912     947    1,178      266  29.2%    231     24.4%
Capital Development Admin           416      447      450      607      160   35.8%    158      35.1%
Subtotal                     12,218    25,463    21,164    26,241       778    3.1%   5,077       24.0%
Environment & Sustainability
Environment & Sustainability Admin       148     2,523     1,523     1,014     (1,509)  -59.8%    (509)  -33.4%
Aviation Environmental              3,745     6,301     4,915     6,503       202    3.2%   1,588       32.3%
Maritime Environmental & Planning      2,098     2,385     2,392     3,046       661   27.7%     653      27.3%
Noise Program                  722      723      738      742       19   2.6%      4     0.5%
Subtotal                     6,712    11,932     9,569    11,304      (628)   -5.3%   1,736       18.1%
TOTAL                111,172  137,942  129,900  144,682    6,740  4.9%  14,782      11.4%
10

Corporate 
2018 Capital Budget 
September 26, 2017

Capital Budget Overview 

2018-2022 
Five Year Capital Plan*                2018      2019      2020      2021      2022      Totals 
Commission Authorized Projects               1,398       150        -            -         -     1,548 
Projects Pending Authorization                 6,500      4,100        -            -         -    10,600 
Pending Future Authorization                     -       750      5,000        5,000      5,000    15,750 
Small Capital                              5,385      4,401      4,071         4,373      4,206    22,436 
Totals                                      13,283       9,401      9,071        9,373       9,206      50,334 
*Excludes ICT Projects Budgeted in Divisions and 
and ICT Portions of PMG Led Projects 

12

Commission Authorized/Underway 
2018-2022 
Five Year Capital Plan                         2018    2019    2020    2021    2022     Totals 
Commission Authorized Projects 
Project Cost Management System                  U     581       -       -       -       -       581 
POS Website Redevelopment                    U     117      -       -       -       -       117 
Supplier Database System                       N     400     150       -       -       -       550 
Data Center Operations/Business Continuity            N     100       -       -       -       -       100 
Firewall Replacement                          U     200       -       -       -       -       200 
Totals                                              1,398      150        -        -        -       1,548 

N = New System U = System Upgrades or Replacements 

13

Pending Authorization 
2018-2022 
Five Year Capital Plan*                     2018    2019    2020    2021    2022     Totals 
Projects Pending Authorization 
PeopleSoft Financial Upgrade                  U    3,000    2,500      -       -       -       5,500 
Radio System Upgrade                     U    1,800       -      -       -       -      1,800 
Budget System                          U    300      300      -       -       -       600 
Police Records Management System             U    700     1,300      -       -       -      2,000 
STIA Storage Refresh                        U     700         -      -        -        -        700 
Totals                                          6,500     4,100        -        -        -       10,600 
*Excludes ICT Projects Budgeted in Divisions 
N = New System or Function U = System Upgrades or Replacements 

14

Small Capital and 
Future Authorization: ICT Allowance 
2018-2022 
Small Capital                            2018      2019      2020      2021      2022       Totals 
Technology Infrastructure                  1,500     1,500     1,500     1,500     1,500       7,500 
Technology Business Applications             1,150     1,000     1,000     1,000     1,000       5,150 
Enterprise GIS Small Capital                   250       250       250       250       250        1,250 
Corporate Small Capital                     240       200       200       200       200       1,040 
Corporate Fleet Replacement               1,180      381      384      576      707       3,228 
CDD Small Capital                        140      108       72       172      132        624 
CDD Fleet Replacement                   925      962      665      675      417       3,644 
Total Small Capital                          5,385      4,401      4,071      4,373      4,206       22,436 
Future Authorization: ICT Allowance 
ICT Allowance                            -      750     5,000     5,000     5,000      15,750 
Combined Totals                          5,385     5,151     9,071     9,373      9,206      38,186 
15

2018 Corporate Budget 
Appendix

2018 New Budget Additions 
(excludes Capital Development and Environment & Sustainability) 
Dept. Item Description (in $000's)                                 Amount
Commission Office
Commission Staff Assistant - Comm Records                            82 
Public Affairs
Airport Minority Advisory Council 2018 National Conference                     93 
Portwide Stakeholder Database (CRM)                                80 
Annual "State of the Port" Breakfast                                      25 
Env. Justice Near Port Communities Projects                              25 
Other initiatives                                                        45 
Subtotal                                                      268
Human Resources
POS Leadership Development Program                             125
Industrial Hygiene Monitoring Consulting Services                            90 
HR Communications Consulting Services                               75 
Sr. Talent Acquisition Representative                                    125
Equity Program Manager                                       55 
Benefits Manager - 6 mo. Backfill                                       59 
HR College Intern                                                42 
Employee Engagement Survey (Full & Pulse)                             33 
Youth Internship Program Expenses                                  17 
Subtotal                                                      620
17

2018 New Budget Additions 
(excludes Capital Development and Environment & Sustainability) 
Dept. Item Description (in $000's)                                 Amount
Office of Strategic Initiatives
Lean Consulting Services                                         600
LRP Professional Development & Training                               49 
Subtotal                                                      649
Central Procurment Office
SeaTac Office Center - CPO Rent                                   83 
SeaTac Office Center - CPO Rent                                   67 
New Contract Administrator Positions- CPO Construction                     124
New Contract Administrator Positions- CPO Service Agreements                 97 
Contractor Database System Contract/Support                            80 
Design Build Training - CPO wide                                     9
Subtotal                                                      460
Police
12 New Police Officers                                          1,561
Initial Equipment for new Police Officers                                  234
Subtotal                                                     1,795
Security and Preparedness
Contractor support for risk assessment (THIRA)                             60 
Managed Services (Network Monitoring)                                55 
Automated Data Discovery Tool (PCI)                                  45 
Vulnerability Management Software                                   30 
Four 800mhz radios - replacement items                                20 
Microsoft Consult Services                                          10 
Subtotal                                                      220
18

2018 New Budget Additions 
(excludes Capital Development and Environment & Sustainability) 
Dept. Item Description (in $000's)                                 Amount
Internal Audit
Conduct 2 Outsourced IT Audits in 2018                                190
Sr. Internal Auditor                                                  151
Peer Review -ALGA                                         15 
Subtotal                                                      356
Accounting & Financial Reporting
Capital Services Accountant III                                        117
Concur P-card system Port use fees                                  30 
Subtotal                                                      147
Finance & Budget
Manager, Aviation Finance & Budget                                 134
Administrative Assistant                                              82 
Other                                                    25 
Subtotal                                                      240
Business Intelligence
Analytical support services                                            45 
Performance Measurement training                                  28 
Subtotal                                                       73 
Other                                                   76 
TOTAL                                    4,987

19

2018 New Budget Additions 
(Capital Development) 
Dept. Item Description (in $000's)                                 Amount
ENG
Design - BIM Standards & Procedures (added funding)                      300
Co-Location to SeaTac Office Center (STOC)                            98 
Co-Location Move to STOC and Remote Offices                          79 
Subtotal                                                      477
AVPMG
SeaTac Office Center (STOC) Rent                                 225
AVPMG Move to STOC & Remote Offices                            221
Subtotal                                                      446
PCS
Club Lounge Upgrade                                        263
SeaTac Office Center (STOC) Rent                                  83 
PCS Move to STOC                                       67 
19' Scissor Lift & Electric Cart                                           37 
Subtotal                                                      450
CDD Admin
Staffing Study for CDD                                          150
TOTAL                                    1,523

20

2018 New Budget Additions 
(Environment & Sustainability) 
Dept. Item Description (in $000's)                                 Amount
Environment & Sustainability Admin
ACE-Small Grants                                          200
ACE-Forterra Assessment & Plan                                  200
Develop Project Evaluation Criteria and Processes, Energy & Sustainability          200
Research on Internal Carbon Tax                                    30 
Subtotal                                                      630
Maritime Environment & Planning
Maritime Climate Protection Program Manager                            93 
Sustainability Development Management Specialist                          93 
Terminal 91 Energy Audit                                          82 
Update emissions inventory                                         65 
Shoreline and Bulkhead Maintenance and Repair Programmatic Permitting Support     60 
Three Ports Salish Sea Water Initiative                                   45 
Smart Meter Purchase                                         42 
Outside Services Port Facilities Initial Waste Audit & Report                      80 
Subtotal                                                      560
AV Environmental
SAMP Environmental Review                                  1,700
Aviation Biofuels Partnership Fund Development Project                      175
NDDES Permit Renewal Testing and Reporting                          145
Janitorial Support                                                  95 
Flight Corridor Safety Program Site Maintenance                           75 
WADOC/UW Air Quality                                     75 
Environmental Review and Permitting Staff                                53 
Subtotal                                                     2,318
TOTAL                                    3,507
21

Major Non-Recurring Initiatives 
'18 Bud   '18 Bud
2017  2017 YE   2018 vs. '17 Bud vs. '17 Fcst
No. Dept.        Item Description (in $000's)         Budget Forecast Budget   Change   Change
1 Env. & Sustainability SAMP Environmental Review           2,300     830   1,700     (600)     870
2 Env. & Sustainability Airport Communities Ecology Fund        1,000     500    400     (600)     (100)
3 Env. & Sustainability Environmental Grants to Organizations       1,000     500   - (1,000)         (500)
4 Env. & Sustainability Outside consultant for the ENV CoE.         150     150    200      50      50
5 Internal Audit     Port IT System Audits                200     200    190      (10)     (10)
6 Strategic Initiatives  LEAN Consultant Contract             1,000     800    600     (400)     (200)
7 Strategic Initiatives  LEAN Initiatives - Japan Study Mission        41     41     10      (31)     (31)
TOTAL                   5,691   3,021      3,100    (2,591)     79



22

Major Expense Projects 
(Budgeted in Capital Development) 
'18 Bud   '18 Bud
2017  2017 YE   2018 vs. '17 Bud vs. '17 Fcst
Major Expense Projects (in $000's)          Budget Forecast  Budget   Change   Change Notes
Concessions Tenant Support                   4,018    2,660    5,472     1,454         2,812
Flight Corridor Safety Program                   3,322     2,774    2,231     (1,091)      (543)
Terminal Security Enhancements                 4,272     - - (4,272) -     The entire project can be capitalized
Air Terminal Tenant Improvement Expense Work         630        817     560       (70)      (257)
Landside- Rental Car Facility Tenant Expense Work       250         250     160       (90)       (90)
Main Terminal Low Voltage Project - -     500    500    500 
Ground Based Augmentation System Expense - -      476     476     476    Expense work for the $4.6M project
Air Cargo Rod Expense - -    350   350   350 
Other                                   368       1,950     364        (4)    (1,586)      Some unbudgeted expense projects in '17.
TOTAL                       12,860   8,451  10,113    (2,747)    1,662

23

One-Time Items in 2017, some carrying over to 2018 
Item Org  Item Description ($ in 000s)                                Amount  Notes
Public Affairs
1  1420 Coalition for America's Gateways and Trade Corridors (CAGTC)               7 Subclass 1410
2  1420 Pacific Northwest Waterways Assoc                            13 Subclass 1410
Subtotal                                                       20
Human Resources
1  1850 Continuous Safety Improvement - Behavior Based Safety Training and Tracking      75
Labor Relations
1  1810 Staff Development                                      12
Finance & Budget
1  2100 Economic Impact Study Consultant Service                        300
Internal Audit
1  2280 Port IT system applications and infrastructure risk assessment and audit plan       200
2  2280 Hire a Contractor of Capital Program Audit                        180
Subtotal                                                      380
Security & Preparedness
1  1980 Contractor support for assessments and plans for Org 1980 and Org 4160        100
Environment & Sustainability
1  2710 Airport Communities Ecology Fund                           1,000
2  2710 Environmental Grant                                   1,000
3  2710 Outside consultant assistance in developing plans of action for the CoE.         150 
4  4580 SAMP Environmental Review                              2,300
Subtotal                                                     4,450
Office of Strategic Initiatives
1  2410 LEAN Consultant                                     1,000
2  2410 LEAN Initiative - Japan Study Mission                            41
Subtotal                                                     1,041
GRAND TOTAL                                6,378                            24

Limitations of Translatable Documents

PDF files are created with text and images are placed at an exact position on a page of a fixed size.
Web pages are fluid in nature, and the exact positioning of PDF text creates presentation problems.
PDFs that are full page graphics, or scanned pages are generally unable to be made accessible, In these cases, viewing whatever plain text could be extracted is the only alternative.