MOSSADAMS1.1.1)
CERTIFIED PUBLIC ACCOUNTANTS I BUSINESS CONSULTANTS


www.mossadams.com




T 206-302-6500       July 27, 2010
F 2066229975
l
Mr. Rudy Caluza
Director of Accounting and Financial Reporting
Port of Seattle
Pier 69
2711 Alaskan Way
Seattle, WA 98121

Dear Mr. Caluza:

Thank you for the opportunity to continue to serve as the independent accountants and auditors
for the Port of Seattle. We place a lot of value on our relationship with the Port.

We have developed our scope of work and related fee estimates for the 2010 audits and have
presented those in the attachment to this letter. To recap some of the accomplishments from 2009
and the assumptions that contribute to our plan for 2010, we present the following:

0  We met weekly with key management personnel throughout our interim and nal
fieldwork procedures and met or spoke regularly with management regarding accounting
issues throughout the rest of the year. We plan to continue this approach for the 2010
audits.
0  All deadlines for report deliverables were met. The Single Audit reports were dated the

same date as the financial statement opinion and were delivered over 6 weeks ahead of
schedule. We commit to meeting and exceeding your expectations in this area again in
2010.
0  We adhered to the Port's cost cutting initiative by reducing our 2009 audit fee by over
$30,000, or 5% when compared to the 2008 fee. Our best estimate for fees for 2010
reects an additional 4% decrease, with a not-to-exceed commitment in an amount that
matches the 2009 fee.
0  We continue to use Branch Richards & Co. staff as fully integrated members of our audit

team. BR&Co received $27,000 in subcontractor audit fees, well above our original plan as
specied in our audit proposal. In accordance with the Ofce of Social Responsibility
Small Business Initiative, we plan to continue subcontracting with Branch Richards & Co.,
for up to 10% of the audit contract.
0  Members of our audit team attend every Audit Committee meeting throughout the year.
We plan to continue this in 2010 and 2011.




999 Third Avenue, SUIte 2800                                                                PraXifif.z
Seattle, WA 98104-4019
MEMBER .'
GLOBAL ALLIANCE OF
INDEPENDENT FIRMS

MOSSADAMS Lu"

CERTIFIED PUBLIC ACCOUNTANTS | BUSINESS CONSULTANTS

Port of Seattle
July 27, 2010
Page 2


0  We continue to use government accounting and auditing specialists. During the 2009
audit, we utilized a manager who specializes in real estate, as a vital member of our audit
team, to assist with the complex real estate transactions entered in to by the Port last year.
We are pleased to provide staff continuity for the 2010 audits.
0  We have a good working relationship with the State Auditor's Office and were responsive

to their requests for access to our working papers.

0  We believe we were responsive to all of the requests made by Port Commissioners,
management and staff throughout the year. We commit to meeting and exceeding your
expectations in this area again in 2010.

We look forward to working with you again on the 2010 audits. Please do not hesitate to contact

me if I can provide you with any further information.

Sincerely,

urie J. Tish,
Partner

Enclosure

Client #603642

MOSSADAMS my

CERTIFIED PUBLIC ACCOUNTANTS | BUSINESS CONSULTANTS




FEE PROPOSAL FOR 2010 AUDITS

Description of Service                                Fee

Audit of the enterprise fund financial statements and
net revenue schedule                            $290,000
Audit of the warehousemen's pension trust fund               18,000
Single Audit and reports on federal award programs            225,000
Passenger Facility Charge Program audit and report             21,000

Assumptions:

0  We will commit to the deadlines specied in our proposal for professional services, which are
consistent with prior years.
0  This represents an overall decrease of over 4% from last year's fees

0  The Single Audit fee remains fairly constant with the prior year (a $3,000 decrease) due to the

recent history of few/no findings of noncompliance offset by the expected impact of the
ARRA funding on our procedures. (All ARRA funds are deemed to be 'high risk' by the
federal awarding agencies)
0  The amounts presented above represent our best estimate for each service; we will commit to a
not-to-exceed fee of $577,600 in total for all audit services provided, an amount that matches
our 2009 fees.

0  The amounts above include the subcontractor fees which we will pass on to BR&Co.

0  Our ability to provide the services in accordance with our estimated fees depends on the
quality, timeliness and accuracy of the Port's records.