PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      7a 
Date of Meeting     May 24, 2011 

DATE:    May 16, 2011 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Michael Burke, Director, Lease and Asset Management 
Mark Griffin, Director, Real Estate Development 
Rudy Caluza, Director, Accounting & Financial Reporting 
SUBJECT:  Update on the "Action Status Report" of the 2010 SAO's Performance
Audit of the Port of Seattle's Real Estate Management and Selected Programs 
PURPOSE OF BRIEFING:
On December 13, 2010, the State Auditor's Office (SAO) issued its final report on the Port of
Seattle's Real Estate Management and Selected Programs as required by RCW 43.09.470.
The report included ten recommendations, which the Port of Seattle Commission and Port
staff have considered and are implementing. This briefing will provide an "Action Status
Report" on the Commission's and Port's work to date. Since the Commission is the elected
body ultimately responsible for establishing policy for the Port, the Commission will be
asked to approve the "Action Status Report" at the June 14, 2011, Commission meeting, and
the Port will provide the report to the SAO by July 1.
BACKGROUND: 
The SAO issued an audit of the Port of Seattle's Real Estate Management and other selected
programs on December 13, 2010. The audit centered on the Port's real estate management
and leasing operations, as well as focusing on past sales and purchases of Port property.
The Port held a public hearing to consider the findings and receive public comment on the
SAO performance audit on January 11, 2011.  SAO staff members have complimented the
Port for its "tremendous assistance" during the audit and constructive response to the audit
recommendations and noted the significant reforms implemented throughout the organization
in the past several years. The SAO's contractor, TCBA, also commented that its team "came
away from the project with a high regard for the Port's management team and staff" and also
thanked the Port "for the extraordinary level of cooperation and support" provided during the
audit.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 16, 2011 
Page 2 of 2 
Given that the Commission must both determine responses to policy recommendations made
by the SAO to the Commission and finalize the Port's response in public session, a number
of issues will be touched upon at this meeting, including: 
Progress on the comprehensive strategic plan known as the "Century Agenda." 
Commission oversight over Real Estate transactions and revisions to Resolution No.
3605. 
The Port's implementation of the SAO's recommendations. 
Commission input prior to the submission of the "Action Status Report" to the SAO. 
STRATEGIC OBJECTIVES: 
Be a high performance organization: The Port makes it a high priority to be 
transparent and accountable to the taxpayers of King County, as stewards of
public funds and resources. The Port embraces the responsibility to ensure that its
operations and programs continuously improve in quality, efficiency, and
effectiveness in order to instill public trust and provide ongoing benefit to the
residents of King County and the region. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Draft Annual Action Status Report on the 2009 SAO Performance Audit. 
SAO's Performance Audit Report on Real Estate Management and Selected
Programs released December 13, 2010. 
PowerPoint presentation. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
On January 11, 2011, the Commission held a public hearing to consider the findings and
accept public comment on the 2009 performance audit.