7a Supp

ITEM NO. ___7a Supp______
DATE OF
MEETING: __Aug. 10, 2010___

Q2 2010 Financial Performance

Port of Seattle

July 26, 2010

Portwide Q2 Income Summary
2009 YTD 2010 YTD 2010 YTD 2010 Bud vs. Act
($ in thousands)         Actual    Actual   Budget   Var $  Var %
Operating Revenues       231,759  229,778  231,713  -1,935  -0.8%
Operating Expenses       114,014  117,553  132,459  14,906  11.3%
Income before Depreciation   117,745  112,225   99,254  12,971  13.1%
Depreciation             75,243   79,773   79,201   -572  -0.7%
Income after Depreciation     42,502   32,452   20,053  12,399  61.8%


2

Q2 Major Revenue Variances
Actual/Budget
Operating Revenues (In $ '000)        Var. $ Var. %
Aero Revenues              (4,712)  -4.5%
Public Parking                 (1,411)  -5.5%
Rental Cars                  1,149       8.9%
Concessions                1,682      11.6%
Container                    1,564       5.6%
Cruise                      263      7.3%
Grain                       535     21.0%
Seaport Security Grants            (906) -57.0%
Seaport Environmental Grants        (400) -100.0%
Real Estate Third Party Mgmt         469      9.6%
Other                      (168)  -0.5%
Subtotal                    2,777       2.2%
TOTAL               (1,935)  -0.8%
3

Q2 Major Expense Variances
Actual/Budget
Operating Expenses (In $ '000)       Var. $ Var. %
Salaries & Benefits              2,018   4.7%
Wages & Benefits              566   1.5%
Payroll to Capital Projects          3,110   27.7%
Equipment Expense           1,027  31.4%
Utilities                              993    9.2%
Outside Services              6,541  29.5%
Travel & Other Employee Exps     1,240  45.3%
Promotional Expenses           459  66.7%
General Expenses            2,638  19.8%
Other                     163   3.6%
Charges to Capital Projects        (3,847)  21.3%
Total                       14,907  11.3%
4

Portwide 2010 Year-End Forecast
2009    2010    2010 2010 Bud vs. Fcst
($ in thousands)         Actual  Forecast   Budget   Var $  Var %
Operating Revenues      449,435  470,779  476,784  (6,005)  -1.3%
Operating Expenses      245,767  263,917  262,829   (1,088)  -0.4%
Income before Depreciation  203,668  206,862  213,955   (7,093)  -3.3%
Depreciation            156,192  158,575  158,575      0   0.0%
Income after Depreciation    47,476   48,287   55,380   (7,093) -12.8%


5

Total Port 2010 Capital Spending
Q1  Q2  Q3  Q4   YE App'd    Plan of
Division   Act.  Act.  Est.  Est.   Fcst Budget  Var. Finance
($ in millions)
Aviation     39.2   41.8  68.7  59.8  209.5  247.6  38.1   275.8
Seaport     2.6   4.0   5.2  8.0   19.8   30.8  11.0   30.6
Real Estate    0.8   0.8   2.7   3.8    8.0   11.8   3.8   12.1
Corporate    0.8   1.5   4.0   4.2   10.5   16.7   6.2   10.5
Total    43.4  48.0   80.7  75.8  247.8   306.8  59.0  329.1

6

Aviation Division
Performance Report
Q2 2010

Aviation Business Highlights
Airline activity:
Enplanements down 0.7% YTD from 2009, but only 0.07% off of
forecast through Q2
Operating budget:
Total O&M expenses are 10% YTD below budget due to delay of
expense related projects
Non-airline revenues:
Total revenue per enplaned passenger up 1% YTD vs. budget
Public Parking has seen positive trends over the past four months
Airline cost per enplanement (CPE) of 12.45 vs. budget of
$12.66
Capital: forecasting to spend 81% of 2010 annual budget

Activity
Enplanements vs. Prior Year                  Landed Weight vs. Prior Year
-0.91%
5%                              0%
Growth Rate      2.42%                                                            -3.28%
-2%
0.97%         -4%
-6.73%
-0.79%                                        -6%           -7.89%
0%              -1.29%
-2.35%                Growth Rate -8%                   -10.33%
-3.08%                                -10%                           -11.65%
-12%   Jan   Feb   Mar   Apr   May   Jun
-5%                                   -14%
Jan   Feb   Mar   Apr   May   Jun

2009     2010   %      2009   2010   %
Figures in 000s       YTD       YTD  Variance    Actual  Forecast Variance
Enplanements     7,376    7,322    -0.7%  15,610       15,361        -1.6%
Landed Weight     10,079     9,404    -6.7%  20,388       19,890        -2.4%
No change in forecast for enplanements or landed weight since Q1
Landed weight in 2009 includes 267 wide-body cargo diversions from
Anchorage due to volcanic activity

Q2 YTD Operating Revenue
2008 YTD 2009 YTD  2010 YTD  2010 YTD   Actual/Budget
Figures in $ 000s    Actual     Actual     Actual    Budget     Var $    Var %
Revenues
Landing Fees                   28,203    27,917    26,815    30,325    (3,510)   -11.6%
Terminal Rental                   62,148    65,517    66,595    67,736     (1,141)    -1.7%
Security Grants                     -  - - - - n/a
Other Aero Revenues               5,621        6,353        7,043        7,103      (60)      -0.9%
Total Aeronautical                 95,972         99,787   100,452   105,164     (4,712)    -4.5%
Public Parking                    31,060         25,626    24,149    25,559     (1,411)    -5.5%
Rental Cars                     16,271         16,250    14,083    12,934     1,149    8.9%
Concessions                  15,842        16,410   16,235    14,553     1,682   11.6%
Other Non-airline                   11,006         10,164    10,268    11,058      (790)        -7.1%
Total Non-Aeronautical             74,179         68,450    64,734    64,104      630        1.0%
Other                         4,296        4,177        4,234        4,177       58      1.4%
Total Revenues               174,447   172,413   169,421   173,445    (4,024)   -2.3%
Public Parking  signs of improvement: June revenues for 2010 exceeded
June 2009
Concessions  includes one-time Google wi-fi promotion revenues

10

Q2 YTD Operating Expense
2008 YTD 2009 YTD  2010 YTD  2010 YTD   Actual/Budget
Figures in $ 000s    Actual     Actual     Actual    Budget     Var $    Var %
Revenues                   174,447  172,413  169,421  173,445   (4,024)   -2.3%
Expenses
Salaries & Benefits                     37,891    39,428    37,952    38,796      845       2.2%
Outside Services                      10,516     8,688         9,062        11,311     2,250   19.9%
Utilities                                     6,509           6,784           5,832           7,001      1,168     16.7%
Supplies & Stock                     1,911        2,135        1,772         1,949      177       9.1%
Other                            3,753        1,212        3,277        4,548    1,270   27.9%
Total Airport Expenses                 60,580    58,248    57,895    63,605     5,710    9.0%
Corporate                          13,681         14,291    15,196    17,560     2,364   13.5%
Police Costs                         7,377         6,445         6,811         7,658      847      11.1%
Other Charges/CDD                  2,475        2,114        2,837        3,189     352      11.1%
Total Operating Expenses (excl. Env Res)     84,113         81,098    82,738    92,011     9,273    10.1%
Environmental Reserve                    -  - 1,278         1,363       85      6.2%
Total Operating Expenses             84,113        81,098   84,016   93,374    9,358   10.0%
Net Operating Income               90,334        91,316   85,405   80,071    5,334    6.7%

Utilities  surface water usage down due to mild winter, YTD electricity savings due to
less power usage, lower than forecasted summer energy prices
Outside Services  delays or deferrals of invoice payments, Part 150, South Access
work
11

Forecast Operating Expense
2008     2009     2010     2010     Forecast/Budget
Figures in $ 000s     Actual     Actual    Forecast    Budget      Var $     Var %
Total Operating Revenues         358,329   328,241   347,754   355,324     (7,570)   -2.1%
Operating Expenses
Payroll                           89,458          80,804          78,728          78,141            (586)        -0.8%
Outside Services                   31,928         21,509         23,687         23,847            160        0.7%
Utilities                                12,636           13,209           11,548            12,762              1,214      9.5%
VSP, HR10 & Unemployment Savings       -      1,196      -        -  - n/a
OPEB Reversal                   -     (4,016)     -        -  - n/a
Environmental Reserve               2,542     1,991     2,971     2,971     - 0.0%
Other Expenses                 13,301         8,183    12,466         11,501           (966)       -8.4%
Baseline Airport Expenses        149,865   122,877   129,399   129,221      (178)       -0.1%
Corporate/Capital Development         30,031         37,316         41,257         41,257 -        0.0%
Police                         15,287         14,461         15,170         15,170 -        0.0%
Total Operating Expenses         195,183   174,654   185,826   185,648      (178)       -0.1%
Net Operating Income            163,146   153,587   161,928   169,676     (7,748)   -4.6%
Savings in commodity costs from favorable weather and increased recycling
Delay in opening of Club International
Concessionaire buyouts
Probable further studies to Sound Transit extension, Terminal Development Strategy
Division-wide unemployment benefits and overtime costs

Aeronautical Business
2008     2009     2010     2010    Forecast/Budget
Figures in $000s     Actual      Actual     Forecast     Budget     Var $    Var %
Revenues requirement:
Capital Costs                    81,535     71,872     86,905     92,610     5,705         6.2%
Operating Costs net Non-Aero        131,024          118,482          125,714          125,604           110    0.1%
Total Costs                   212,559          190,355          212,620          218,214           5,815         2.7%
FIS Offset                       (5,250)     (5,250)     (7,000)     (7,000)      - 0.0%
Other Offsets                   (15,686)    (16,441)    (14,092)    (15,062)      970    -6.4%
Net Revenue Requirement          191,623         168,663         191,528         196,152         (4,625)        -2.4%
Other Aero Revenues             12,738     13,871     14,097     15,240    (1,143)        -7.5%
Total Aero Revenues            204,361          182,534          205,625          211,393          (5,768)        -2.7%
Less: Non-passenger Airline Costs      13,039     12,074     14,315     16,752     2,437        14.5%
Net Passenger Airline Costs         191,323          170,460          191,311          194,641          (3,331)        -1.7%

Airline revenues based on cost recovery
Capital costs lower due to savings from low interest rates on
variable rate debt

Aeronautical Key Indicators

2008     2009     2010     2010    Forecast/Budget
Actual     Actual    Forecast    Budget    Var $   Var %
Cost Per Enplanement:
Capital Costs / Enpl                5.22       4.60       5.66       6.03     (0.37)    -8.1%
Operating Costs / Enpl              8.39       7.59       8.18       8.18      0.01    0.1%
Offsets                        (1.30)      (1.39)      (1.37)      (1.44)     0.06    -4.5%
Other Aero Revenues              0.79      0.89      0.92      0.99     (0.07)   -8.4%
Non-passenger Airline Costs         (0.84)      (0.77)      (0.93)      (1.09)     0.16   -20.5%
Passenger Airline CPE           11.89     10.92     12.45     12.67     (0.22)   -2.0%

Change in accounting for TSA grant as non-operating revenue
Change in CPE calculation methodology including Ramp Tower
Fees as a passenger airline cost

Non Aeronautical Business
2008     2009     2010      2010     Forecast/Budget
Figures in $000s     Actual     Actual    Forecast     Budget      Var $    Var %
Revenues:
Public Parking                   59,111          49,688          49,368           51,812     (2,444)    -4.7%
Rental Cars                     35,592         33,321         31,014           31,014     - 0.0%
Concessions                  33,181         33,482         32,023          29,953     2,071    6.9%
Other                        22,644         20,858         21,371          22,350      (979)   -4.4%
Total Revenues                150,528         137,348         133,776          135,128     (1,352)   -1.0%
Operating Expense             61,279        55,916        57,405         57,422      17      0.0%
Share of terminal O&M             16,396         17,011         17,172          17,175        3    0.0%
Less utility internal billing              (13,515)           (16,738)           (14,466)             (14,466)        - 0.0%
Net Operating & Maint              64,160         56,189         60,111           60,131       19       0.0%
Net Operating Income            86,367        81,159        73,664         74,998    (1,333)   -1.8%
Positive trends seen in long term Public Parking transactions over
the past four months  increased year-end forecast by $2.6 million
from Q1
Concessions: better than expected due to land rental income,
Google Wi-Fi deal, higher observed sales per enplanement than
budgeted

Non Aeronautical Key Indicators

2008     2009     2010      2010     Forecast/Budget
Actual    Actual   Forecast    Budget     Var $   Var %
Revenues Per Enplanement
Parking                        3.67      3.18      3.21       3.37     (0.16)   -4.7%
Rental Car                       2.21      2.13      2.02       2.02      0.00    0.0%
Concessions                   2.06     2.14     2.08      1.95     0.13    6.9%
Other                         1.41      1.34      1.39       1.45     (0.06)   -4.4%
Total Revenues                  9.36      8.80      8.71       8.80     (0.09)   -1.0%
Primary Concessions Sales / Enpl     10.29      9.66      9.94       9.78         0.16    1.6%

May Primary Concessions Sales per Enplanement of $10.08

Summary
2008     2009     2010     2010    Forecast/Budget
Figures in $ 000s     Actual     Actual    Forecast   Budget     Var $   Var %
Operating Revenues
Aeronautical                   204,361   182,534         205,625   211,392     (5,768)  -2.7%
Non-Aeronautical                150,528   137,348         133,776   135,128     (1,352)  -1.0%
Other                        3,440        8,359     8,353     8,803      (450)      -5.1%
Operating Revenues           358,329  328,241        347,754   355,324    (7,570)  -2.1%
Operating Expenses           192,641   175,482        182,855   182,677     (178)     -0.1%
Environmental Reserve              2,542        1,991     2,971     2,971     - 0.0%
VSP, HR10 & Unemployment          -     1,196    - - - n/a
OPEB Reversal                  -     (4,016)     - - - n/a
Total Operating Expenses        195,183   174,654        185,826   185,648     (178)     -0.1%
Net Operating Income          163,146   153,587        161,928   169,676    (7,748)  -4.6%
Capital Expenditures              209,813   191,479         201,353   247,567    46,214  18.7%
Traffic
Enplanements                16,085   15,610    15,361        15,361 -     0.0%
Landed Weight                21,516   20,388    19,890        20,364          (474)  -2.3%
Key Measures
Non-Aero NOI ($ in 000s)            86,474    81,159    73,664         74,998          (1,333)  -1.8%
Passenger Airline CPE             11.89        10.92     12.45     12.67      0.22   1.7%
Total Operating Cost / Enpl            12.13         11.19     12.10     12.09      (0.01)  -0.1%
Debt Service Coverage               1.40     1.41      1.33     1.36     (0.02)  -1.8%
Forecast $4.1 million interest expense savings from variable rate debt service

Capital Spending
2010
2010      2010       Forecast/Budget       Plan of
Figures in $ 000s  YTD Actual    Forecast     Budget       Var $      Var %      Finance
Rental Car Facility (1)                      62,505      149,678      174,699       25,021       14.3%     157,818
Third Runway Projects (2)                    562       2,765       7,714       4,949      64.2%      5,549
North Expressway Relocation                (817)      5,202      5,600        398      7.1%     13,000
RW 16C-34C Panel Replacement (3)            230      3,246      5,450      2,204     40.4%        0
Aircraft RON Parking USPS Site              5,025      5,247      5,210        (37)      -0.7%      5,100
3rd R/W Overflights Acq (ATZ)                 577       3,827       4,000        173       4.3%      2,138
Cent Plant Preconditioned Air (4)               1,212       1,962       3,500       1,538      43.9%      10,500
Loading Bridges Utilities (5)                     27         427       2,900       2,473       85.3%       3,500
Alaska Air 2 Step Ticket Counters (6)              0         20       2,015       1,995      99.0%         0
All Other                              10,035      28,979      36,479       7,500      20.6%      78,227
Total                                79,356      201,353      247,567      46,214      18.7%     275,832
1.  Turner Construction is behind in their January 2010 cash flow projections
2.  Pond M will not be completed in 2010
3.  Bids for 2010 AIP contract significantly under engineer estimate
4.  Scope changes extended design schedule
5.  Delays with Harris Group required going back to Commission
6.  Port owes Alaska $1.9 million; baggage dispute still in negotiations

Seaport Division
Performance Report
Q2 2010

Seaport Business Goals
TEU volume was 1,004K, up 45% from first half 2009.
Full inbound TEU's were up 63% and full outbound up
27%.
Grain volume at 2.8 million metric tons up 11% from
2009 and 23% over 2010 Q2 YTD budget.
Cruise season started on April 26th. On track to meet
2010 budgeted passenger volume of 850,000
passengers.
Executed new lease with PCC Logistics at Terminal 104.
Louis Dreyfus exercised option for 5 year lease
extension at Terminal 86.
20

Seaport Organizational Goals
Environmental Stewardship
Continuing implementation of Northwest Ports Clean Air
Strategy.
AAPA award for Environmental Compliance Assessment
Program.
Regional Transportation  Closely monitoring south
harbor road construction projects and detour routes.

21

Seaport Q2 YTD Operating Results
In $ Thousands        2009 YTD 2010 YTD 2010 YTD   2010 Bud Var
Actual   Actual  Budget    $ %
Operating Revenue           43,714   44,508   42,254    2,254    5%
Security Grants                129     682    1,588     (906)  -57%
Total Revenue              43,842   45,190   43,842    1,348    3%
Direct Expenses             11,023    8,886   10,787    1,901   18%
Security Expense              529    1,074    2,201        1,128   51%
Environmental Reserve            0     855     750     (105)  -14%
Divisional Allocations             1,001     1,210     1,282       73     6%
Corporate Allocations           5,736    6,198    7,028     830    12%
Total Expense              18,287   18,223   22,049    3,826   17%
Net Operating Income (NOI)    25,555   26,967   21,794    5,173   24%


22

Seaport Division Key Variances
Revenue Detail ($'s in Thousands)
Q2 YTD Business Unit        Variance to Budget
Better (Worse)
Containers                          $1,564
Support Properties                       ($90)
Cruise                              $263
Grain                              $535
Docks/Industrial Properties                   $382
Security Grants                         ($906)
Environmental Grants                    ($400)
Total                               $1,348
23

Seaport Division Key Variances
Expense Detail ($'s in Thousands)
Q2 YTD Expenses          Variance to Budget
Better (Worse)
Security Expenses                     $1,128
Outside Services                       $1,075
Corporate                           $900
Advertising/Promotional                    $175
Salaries and Benefits (Seaport)                $173
All Other                                $375
Total Expense                      $3,826

24

Seaport Business Groups
NOI Before Depreciation ($'s in Millions)
Q2 YTD    Variance to Budget
Actual NOI     Better (Worse)
Containers               $21.6          $3.3
Container Support Props        $ .3           $ .0
Cruise                   $1.7           $ .7
Grain                   $2.5           $ .6
Docks/Indust Props           $2.2           $ .9
Security                   ($ .6)           $ .2
Envir Grants/Reserve         ($ .8)          ($ .5)
Total Seaport             $26.9          $5.2
25

Seaport Full Year Operating Forecast
In $ Thousands          2009    2010    2010    2010 Bud Var
Actual  Forecast  Budget    $ %
Operating Revenue           89,844   91,151   90,134    1,017    1%
Security Grants                847    2,535    2,535       0    0%
Total Revenue              90,691   93,686   92,669    1,017    1%
Direct Expenses             24,329   22,260   21,631     (629)   -3%
Security Expense             1,640    3,756    3,756           0    0%
Environmental Reserve            24    1,500    1,500       0    0%
Divisional Allocations             2,123     2,575     2,575        0     0%
Corporate Allocations           12,430   13,862   13,862       0    0%
Total Expense              40,545   43,953   43,324     (629)   -1%
Net Operating Income (NOI)    50,145   49,733   49,345     388    1%

26

Seaport Capital 2010
Estimated Approved Variance  Est. Act.   Plan of
Actual   Budget     to    as % of   Finance
Budget  App. Bud

$19.8   $30.8  $11.0   64%   $30.6


27

Real Estate Division
Performance Report
Q2 2010

Real Estate 2nd Quarter Key Events
Full Year Net Operating Income forecasted to meet
budget.
Terminated Portside Caf management agreement and
issued RFP for leasing the facility.
Closed sale on a portion of Eastside Rail Corridor to the
City of Redmond.
Vessel liability insurance requirement effective at
Fishermen's Terminal on January 1, 2010. Compliance
as of June 30th at 93%.

29

Real Estate Business Goals
Provide Compelling Value and Asset Utilization
Occupancy Rates: Commercial property at 89%
occupancy, below target of 90% and above 2010 Q2
Seattle market average of 87%.
FT/Marina Occupancy: Fishermen's Terminal exceeded
the second quarter YTD occupancy target. Maritime
Industrial Center below target. Recreational Marinas at
92%, slightly below target of 93%.

30

Real Estate Division Qtr 2 Operating Results
In $ Thousands        2009 YTD 2010 YTD 2010 YTD   2010 Bud Var
Actual   Actual  Budget    $ %
Operating Revenue           15,348   14,857   14,417     441    3%
Total Revenue            15,348   14,857   14,417    441    3%
Direct Expenses             13,126   13,861   15,391    1,531   10%
Environmental Reserve            0       0       0       0    NA
Divisional Allocations            (1,482)   (1,733)   (1,893)     (160)    -8%
Corporate Allocations           2,397    2,579    2,924     345    12%
Total Expense              14,041   14,706   16,423    1,716   10%
Net Operating Income (NOI)     1,307     151   (2,006)   2,157  108%


31

Real Estate Division Q 2 Key Variances
Revenue Detail ($'s in Thousands)
2010 Year to Date               Variance to Budget
Business Unit                  Better (Worse)
Recreational Boating                          $8
Fishing & Commercial                      $134
Commercial Properties                       $15
Third Party Management                    $469
RE Development & Planning                 ($21)
Eastside Rail                             ($104)
Facilities/Maintenance                        ($60)
Total                                  $441

32

Real Estate Division Q2 Key Variances
Expense Detail ($'s in Thousands)
2010 Year to Date                  Variance to Budget
Expense                     Better (Worse)
Outside Services                              $689
Corporate                                 $415
Maintenance Expense                        $446
Salaries and Benefits (Real Estate)                    $173
Third Party Management                        $106
All Other                                      ($113)
Total Expense                            $1,716

33

Real Estate Business Groups
NOI Before Depreciation ($'s in Thousands)
Q2 YTD    Variance to Budget
Actual NOI      Better (Worse)
Recreational Boating           $1,033           $571
Fishing & Commercial          ($978)           $552
Commercial & Third Party         $455           $1,019
RE Development & Planning      ($248)           ($2)
Eastside Rail                 ($111)             $17
Total Real Estate              $151           $2,157


34

Real Estate Division Full Year Forecast
In $ Thousands          2009    2010    2010    2010 Bud Var
Actual  Forecast  Budget    $ %
Operating Revenue           30,132   29,947   29,798     149    1%
Total Revenue              30,132   29,947   29,798     149    1%
Direct Expenses             27,525   31,046   30,949     (97)  -0.3%
Environmental Reserve            0       0       0       0    NA
Divisional Allocations            (3,200)   (3,750)   (3,802)      (52)    -1%
Corporate Allocations           5,244    5,808    5,808       0    0%
Total Expense              29,569   33,105   32,956     (149)  -0.5%
Net Operating Income (NOI)      563   (3,158)   (3,158)      0    0%


35

Real Estate Capital 2010
Estimated Approved Variance  Est. Act.   Plan of
Actual   Budget     to    as % of   Finance
Budget  App. Bud

$8.0   $11.8   $3.8   68%   $12.1


36

Capital Development Division
Performance Report
Q2 2010

Capital Development Division
2nd Quarter Business Events
Completed initial draft engineering department (and PCS) re-evaluation in June 2010.
Engineering providing increased expense project work at the Operating Divisions' request.
Updated PCS Compass website to include a monthly featured project that includes construction
status and customer comments.
Multiple projects went to construction bid, including PC air, airfield stormwater improvements
(Contract 2), and C1-C88 baggage system.
Major project coordination effort started for 25+ south satellite-area projects scheduled over the
next 3 years, particularly 2011.
Project art planner has completed the T91 cruise terminal art plan.
SPU agreed to work with the Port on the preferred option of indemnification to resolve Qwest Hut
encroachment to their sewer line.
Audit conducted by FHWA on EMWGS project-specific documentation. Very good report with full
concurrence of accurate project documentation, assuring Port's continuing status as a fully
certified lead agency for the administration of state and federal grant funds.
Drafted CPO P-card Procedures for review and finalization for 3rd  4th Qtr implementation.
Conducted 6 classes for CPO-1, Evaluation &Source Selection, and Contract Administration.
Trained 148 employees.

2010 Q2 YTD Update

Capital Development Division
Key Indicators
Completed Projects          Completed Projects
Q2 2010                Summary
100%  2.5%                          20%
0.4%
80%                              15%
60%
97.5%                             10%       6.2%
40%                                                 18.36%
20%                              5%
7.7%
14.5%   7.2%   18.2%
0%       0.0%       9.3%
0%
North/South   Main    2nd Floor     AV     4th Floor
Satellite  Terminal Fire   HVAC   Consolidated  Walkway                           2009                     2010
Food Court   Piping    Project   Warehouse   Project                   (23 Projects)            (8 Projects)
Flooring   Upgrades
Mandatory Change     Discretionary Change             Mandatory Change    Discretionary Change
Cost Growth During Construction
2010 Q2 YTD Update

Capital Development Division
Key Indicators continued
Completed Projects         Completed Projects
Q2 2010               Summary
100%
150%                               80%
100%                               60%
170.7%
40%
50%                                      62.2%
20%                   39.7%
0%       3.8%   5.7%   3.3%  15.1%
0%
North/South   Main    2nd Floor    AV    4th Floor
Satellite  Terminal Fire   HVAC    Warehouse  Walkway                        2009                    2010
Food Court   Piping    Project            Project                (23 Projects)          (8 Projects)
Flooring   Upgrades
Project                                                             Cumulative
Value   $918,000   $237,233   $790,000   $4,660,754   $571,900          Value     $365,794,281            $7,899,854
Project Schedule Growth
Original Construction   Non-Discretionary  Discretionary Change  Initial Commission   Planned Substantial
Project               Contract Amount        Change                      Authorized Start of     Completion of
Design        Construction
2nd Quarter 2010
North/South Satellite Food Court Flooring                 $918,000               97.5%                2.5%               1-Jul-07             30-Jun-08
Main Terminal Fire Piping Upgrades                    $237,233               0.0%               0.0%              1-Sep-08            31-Mar-10
2nd Floor HVAC Project                          $790,000              14.5%              0.0%              1-Apr-08            28-Feb-10
AV Warehouse                           $4,660,754            9.3%             7.2%            1-Apr-08           28-Feb-10
4th Floor Walkway Project                          $571,900               18.2%               0.0%              1-Feb-06             31-Jul-09

Capital Development Division
Operating Results
2009 YTD 2010 YTD           2010 Bud Var.      Year-End Projections
In $ Thousands                         Actual     Actual   Budget    $ %    Budget  Forecast  Variance

Total Revenues                          81       - - - 0.0%    - - -

EXPENSES BEFORE CHARGES TO CAPITAL
PROJECTS
Capital Development Administration                 161      197      194       (2)       -1.2%   387      400       (13)
Engineering                              4,926     4,716     6,732     2,017       30.0%  13,574    13,574 -
Port Construction Services                      2,923     3,448     3,406       (41)       -1.2%  6,814     6,855       (41)
Central Procurement Office                     1,637     1,572     2,062      490        23.8%  4,171     4,171 -
Aviation Project Management                   2,454     2,338     3,333      995       29.9%  6,545     6,545
Seaport Project Management                   1,272     1,219     1,349      130        9.6%  2,672     2,522      150
Total Before Charges to Capital Projects          13,372    13,490    17,077     3,588       21.0%  34,162    34,066      96



2010 Q2 YTD Update

Capital Development Division
Key Variances to Budget
2010 Expenses        Variance to Budget   YTD Var. F/(UNF)
in $ Thousands         Better (Worse)          %
Salaries and Benefits                        2,735       19.2%
Outside Services                           331       26.8%
Travel and Other                           148       63.7%
Telecommunications                        50       50.6%
Property Rentals                            68       28.7%
General Expenses                         45       8.2%
All Other                                   210        47 %
Charges to Capital Projects                   (3,149)       23.8%
Total                                   439       11.4%
2010 Q2 YTD Update

Corporate Professional &
Technical Services
Performance Report
Q2 2010

Corporate Business Events
Drafted a letter on behalf of the US West Coast
Collaboration to US Secretary of Transportation Ray LaHood
to provide feedback on the draft USDOT Strategic Plan.
Finalized Eastside Rail Corridor closing and signing
ceremony with City of Redmond.
Hosted the Mayor's Industrial Tour showcasing Fishermen's
Terminal/MIC, Terminal 91, Viaduct and Cargo
Terminals/Duwamish River industrial area.
Published 2009-2010 Annual Report to the Community.
Police completed Accreditation through the Washington
Association of Sheriffs and Police Chiefs.
44

Corporate Key Indicators
Port website received 1.95 million visits.
97% completed Health Assessment.
Responded to 138 public disclosure requests.
89% of ICT projects completed on budget.
Negotiated 4 labor contracts, 9 MOU's and 1 PLA.
Presented 7 internal audit reports to the Audit Committee.
1,123 small businesses registered on the roster.
Received 29,534 calls for Police services.

45

Corporate Q2 Operating Results
2009 YTD     2010 YTD      2010 Bud Var.
In $ Thousands                    Actual   Actual  Budget    $ %
Total Revenues                    157    309     9     300  3337.2%
Executive                          715    697    790     92   11.7%
Commission                     422    404    473    69   14.7%
Legal                           975   1,603   1,506    (98)   -6.5%
Risk Services                       1,253   1,259   1,515    256   16.9%
Health & Safety Services                 468    499    572     73   12.8%
External Affairs                       2,407   2,644   3,209     565   17.6%
Economic & Trade Development           660     -  - - 0.0%
Human Resources & Development         1,740   1,741   2,376    635   26.7%
Labor Relations                      319    294    393     99   25.3%
Information & Communications Technology    7,722   8,696   9,527    831    8.7%
Finance & Budget                    719    729    772     43    5.5%
Accounting & Financial Reporting Services    2,928   2,946   3,363    417   12.4%
Internal Audit                          460     494     531     37    7.0%
Office of Social Responsibility               534     576     760     184   24.3%
Police                            8,299   9,204   10,252        1,048   10.2%
Contingency                       313     17    375    358   95.3%
Total Expenses                   29,933       31,802       36,413       4,610   12.7%
46

Corp Q2 Major Expense Variances
Actual/Budget
Operating Expenses (In $ '000)       Var. $ Var. %
Salaries & Benefits               280   1.7%
Wages & Benefits              667   7.4%
Payroll to Capital Projects           546   32.3%
Equipment Expense            398  63.3%
Outside Services              1,579  27.1%
Travel & Other Employee Exps       618  42.3%
General Expenses              492  28.2%
Other                     354  36.8%
Charges to Capital Projects         (322)  17.8%
Total                       4,610  12.7%

47

Corporate Year End Forecast
Year-End Projections
In $ Thousands                       Budget Forecast Variance
Total Revenues                        18     338    320
Executive                            1,536       1,536 - 
Commission                        868    868   - 
Legal                             2,923       3,163       (241)
Risk Services                           3,009        2,992         17
Health & Safety Services                   1,095        1,091          4 
External Affairs                           5,997        5,997 - 
Human Resources & Development            4,838       4,588       250
Labor Relations                         784     784   - 
Information & Communications Technology      19,033   19,033     - 
Finance & Budget                      1,529       1,525         4 
Accounting & Financial Reporting Services        6,716        6,654         61
Internal Audit                            1,109        1,108          1 
Office of Social Responsibility                 1,458        1,456          2 
Police                               20,314   20,282     32
Contingency                          750    550    200
Total Expenses                       71,958   71,628    330

48

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