PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      7a 
STAFF BRIEFING 
Date of Meeting     March 24, 2015 
DATE:    March 16, 2015 
TO:     Ted Fick, Chief Executive Officer 
FROM:    Diane Campbell, Treasury Manager 
SUBJECT:  2014 Annual Investment Portfolio Report and Treasury Update 
SYNOPSIS 
The purpose of this memo and report is to provide: (i) the annual investment update of the
Port's investment portfolio, as required by the Port's Statement of Investment Policy, and (ii)
a brief update on major current Treasury initiatives. 
BACKGROUND 
The Port established its in-house Treasury pursuant to the Port's Commission Resolution No.
3476, adopted on December 11, 2001. The resolution appointed the Port's Chief Financial
Officer as the Port's Treasurer. Prior to the passage of this resolution King County served as
the Port's Treasurer.  Subsequently, Resolution No. 3663, adopted as of June 2002,
authorized the implementation of the Statement of Investment Policy, guiding how the
Treasurer will invest Port funds, much of which is dictated by State of Washington laws. 
Summary of Investment Portfolio Earnings 
Since the Port became its own Treasurer, the long term investment performance has
exceeded the benchmark (the Bank of America, Merrill Lynch 1-3-year Treasury Agency
Index) by 84 basis points, and during 2014, the Port's portfolio earned 31 basis points over
the benchmark:
Year:         Port         Benchmark     Over/under performance 
2014        0.86%          0.55%            +0.31% 
2002 to 2014      2.80%          1.96%             +0.84% 
Authorized investments are made in accordance with and subject to restrictions of the
Revised Code of Washington (RCW) 36.29.020, and the portfolio primarily consists of
conservative investments, typically U.S. Government Treasuries and Agencies bills, notes
and bonds.  To meet the Port's investment objectives, the investment policy includes
additional risk controls that impose further restrictions on the types of securities permitted
under statute. These include limiting the maturity date of securities purchased to be no more
than 10 years from the settlement date, and a total portfolio target (modified) duration of 2.0
years, plus or minus  year. Further details on permitted investments are in the attached
Statement of Investment Policy. 
Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 16, 2015 
Page 2 of 2 

Summary of Major Treasury Initiatives 
Following the August 2013 Commission authorization to bid out for a new banking services 
contract, Treasury partnered with teams from Accounting & Financial Reporting (Revenues
Services, Disbursements and Business Technology), Information Communications &
Technology (ICT), Purchasing and Airport Parking. The bank selection team also included a
senior treasury executive from Costco Wholesale Corporation. An estimated 4,500 staff 
hours were spent on the preparation of the RFP, evaluation of responses and implementation
of the new banking contract. Wells Fargo Bank was ultimately selected from the banks who
responded to the RFP, and a new five-year contract (with the option to extend for two
additional one-year periods) was executed in May 2014. Conversion from the incumbent,
Bank of America, began September 1, 2014, and as of the end of 2014, 99% of banking
operations were transitioned to Wells Fargo Bank; the remainder of operations are expected
to be completed by March 2015. 

ATTACHMENTS TO THIS BRIEFING 
Annual Investment Report Update for year-end 2014 
Current Port Statement of Investment Policy 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
August 6, 2013, approval of procurement for banking service contract