Item No. . 9a_supp 
Meeting Date: July 10, 2018 
Maritime Division 
2019 Business Plan and
Budget Development 
July 10, 2018

Outline 

Strategy to Budget Process 
Strategic Priorities 
Anticipated 2019 Budget needs: Capital Focus 
2019 Milestones 

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2019 Maritime Division Budget Timeline 

2019 Business             BudgetBudget            Budget BriefingBudget            First Reading &First Reading &         2nd Reading &2nd Reading &
Plan and CIP            DevelopmentDevelopment             Briefing                 Public HearingPublic Hearing         Final Passage ofFinal Passage of
Development             Briefing Briefing                                for 2019 Budget               for 2019 Budget         2019 Budget 2019 Budget 
(May/June)                  (July 10) 
(July 10)                       (Oct 9) (Oct 9)                  (Mid-November) (Mid-November)             (Late November) (Late November) 


Note: Detailed schedule in appendix 

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Strategy To Budget Process 
Century Agenda                            Century Agenda and LRP
underway: focus on creating
Vision                    5- 10 Years           jobs of the Future in the Ocean
Strategic Planning              Cross Functional                                     Economy. 
Evaluation                                  Strong Demand of facilities in
Gap                                  all business lines: Vessel size
Strategies and Objectives                             growing. 
3  5 Years 
(Long Range Plans)                              Matrix organization requires
cross-functional work and
Implementation                                                              close collaboration 
2019 Business Plan 
Developing strategies and
Annual 
2019 Budget                                actions to position Maritime
2019 Performance Plans                           Division and Industry for the
future. 
2019 Budget will reflect resources needed to move towards CA Objectives 4

Maritime Priorities 2019 



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Maritime Priorities 
Maritime Priorities           Century Agenda/LRP 
Financial Stability                    CA/LRP (S1-Obj 2) Making prudent infrastructure investments. 
Customer Service                 CA/LRP (S2-Obj 9, PA2) Improving convenience and efficiency for cruise passengers. 
LRP/HPO (S1-Obj 1, PA1,2,3) Making the NWSA an attractive West Coast gateway. 
Economic Impact                 CA/LRP (S1-Obj 5 PA 1,2,4); (S2-Obj 9 PA 1,3,4); (S3-Obj 10 PA1,3); (Obj 12, PA1,2). Fostering family
wage jobs and workforce development. 
Safety, Security, Preparedness      LRP/HPO S2-Obj 3 PA1,2,3); (Obj 4, PA1,2,3); (Obj 6, PA2) Continuous improvement in safety,
security, and preparedness. 
Sustainability                        CA/LRP (S4-Obj 13, PA1,2,3,4); (Obj 14, PA1,2,3); (Obj 15, PA2,3,4); (Obj 16, PA1,2,3); (Obj 17,
PA1,2,3,4) Becoming North America's Greenest, Most Energy Efficient Port. 
Innovation, Process                CA/LRP (S1-Obj 5, PA3); 
Improvement                   LRP/HPO (S1-Obj 2, PA 1,2,3); (Obj 6, PA1) Innovating in the maritime cluster as well in our own
organization. 
Equity, Inclusion                     LRP/HPO (S4-Obj 7, PA1); (Obj 8, PA1); (Obj 9, PA1) Demonstrate our leadership in equity, equity,
and inclusion. 
Asset Management              CA/LRP (S1-Obj 5, PA 1, 2); (Obj 8, PA3) 
LRP/HPO (S1-Obj 1, PA2,3); (Obj 2, PA 1) Building a framework for maintaining our maritime assets.
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Cruise 
Industry/Business Context 

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Worldwide cruise passengers 
25,000
US    CRISIS            CONCORIDA                           SARS              ECONOMIC
20,000
11 9-










Passengers ('000)     15,000
10,000

5,000

0
Asia                   Europe                   North America
8 
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Seattle's Cruise Passenger Growth 
1999  2018 
1,000,000   Seattle Ranks #1 - West Coast Cruise Ports 
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
99       00       01       02       03       04       05       06       07       08       09       10       11       12       13       14       15       16       17
2018: 216 cruise vessel calls scheduled  - Est revenue passengers 1,100,600 

Seattle Ranks #1 - West Coast Cruise Ports                                     9

Additional Industry Capacity Planned Through 2026 

Year        2018    2019    2020    2021    2022    2023    2024    2025    2026 
# of New   16   23   16   13   14    5     4     2     1 
Ships 
+94 New Ships by 2026 
*Source: Cruise Industry News 
New Ships On Order To Meet Demand                                    10

Cruise Ships are Getting Larger 

Norwegian Bliss 




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Fishing 
Industry/Business Context 

12

Ocean Economy critical to the Region's Economy 



*Information taken from Maritime Federation 
"Economic Impact of the Maritime Industry in
Washington State" 
Important family wage jobs: ecosystem of Maritime services             13

Fishing Vessels: moorage shortage for larger vessels 




Recapitalization underway                                              14

Industry/Business Context 
Recreational Boating: 
Strong Demand for moorage: occupancy high! 
Trend expected to continue 
Our marinas provide direct access to the
water for many King County Residents 
We are involved in transacting directly 
with the public 

Water access for community members                                                                  15

Industry/Business Context 
Grain: 
Volumes have increased an average of 7% per year, for last 3 years. 
The YTD 2018 volumes are down by 6%. 
Portfolio Management: 
The local industrial real estate market remains strong with record
lease rates. 
Occupancy rate around 98.3%. 
Higher than average growth projected. 

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Challenges 
Larger Vessels: finding space 
Traffic congestion 
Capital Capacity: continuing to steward
and maintain our assets given capacity
and resource availability 
Construction cost escalation 
Changing land use in Seattle 
Terminal 86 is an export-only facility:
trade wars could impact. 
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Strengths 
Robust Maritime Cluster
and legacy 
Proximity to Alaska 
Strong Team 
Track Record in
Sustainability 

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Financial Goals: 2019 is year 1 of a 5 year plan 
2019: Positive Net Operating Income including Allocations and Depreciation 
Cruise 
Grain Terminal 
2019: take steps to reach Positive Net Operating Income 
Maritime Portfolio Management 
Recreational Boating 
2019 take steps to cover expenses 
Fishing and Operations 
Maritime Goal: Positive NOI after Depreciation by 2024 

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Financial Strategic Plans 
1.) Find / expand           2.) Maximize existing      3.) Limit spending
new revenue sources       revenue streams          increases 
4th Cruise berth                Guest moorage               Push process
Habitat banking               Lease renewals                improvement 
Dry stack moorage            Increase recreational        Use technology to
reduce workload 
Industrial                      moorage during
development                  fishing season @ FT          Leverage existing
Diversified fleet                Align rates to market           overhead 
demand                  Optimize predictive
maintenance 
Cost sharing 

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Advance Environmental Sustainability 
Complete stormwater system assessment and develop
framework for repairs and green stormwater infrastructure. 
Restore and maintain habitat sites. 
Develop a Habitat Mitigation Banking Agreement. 
Greenhouse gas reduction plan. 
Track and reduce solid waste generation. 

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Other Priorities: Resiliency, Innovation, Equity 
All employees go home safely 
Implement systematic approach to behavior based safety. 
Be better prepared to respond to emergencies. 
Enhance Incident Command Systems qualifications for staff. 
Lead Maritime Industry in Innovation 
Train leaders in Continuous Process Improvement. Encourage innovation at every
level. Maritime Blue 
Partner with others to bring more diverse workforce to Maritime Industry 
Mentoring youth and increasing support for Internships and pre apprentices 

STRATEGY                           22

Preliminary 2019 to 2023 Capital Program 
Capital Spending Breakdown 
New Projects Proposed (> $5M): 
EDD and Maritime in $M               T117 Restoration 
Projects                                  Small                                  FT Docks 3,4,5 Upgrade 
Underway, $8.2                         Projects/Fleet,
$12.8                                 T91 Berths 6 and 8 
"On the bubble" 
Salmon Bay Uplands Development 
Contingency,
Harbor Island Marina Dock E Rehab 
$30 
FT Redevelopment Phase I 
Shore power at P66 
New Projects,
$149 
Not Included: 
Additional Cruise Facility
$200 Million Total 
Note: Assumes current revenue and levy projections 
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Appendix Slide #1 
Maritime Division - 2017 Actual
Fishing &    Rec.    Portfolio   Grain    Other /    Total
in $000s                          Cruise     Ops     Boating   Mgmt.  Terminal  Habitat  Maritime
Revenue                    17,596          9,297   11,086         10,787          5,427           (9)     54,184 
Direct Operating Exp.          2,674     4,599     3,813     3,682      - - 14,768 
Maintenance Exp.            2,048     2,295     2,483     3,290      277           27    10,420 
Central Services               3,645     3,148     3,010     3,052       867 -        13,722 
Other External Exp.              629           707           474           596           253           594         3,253
Total Operating Exp.               8,996    10,749            9,780    10,620            1,397            621        42,163 
NOI before Depreciation          8,600    (1,452)           1,306      167        4,030           (630)   12,021 
Depreciation                 5,924     5,119     3,122     2,681      558            6     17,410 
NOI after Depreciation            2,676    (6,571)           (1,816)    (2,514)           3,472           (636)    (5,389) 

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Detail 2019 Budget Schedule 
07/24  2019 EDD Business Plan and Budget Development Preview briefing 
09/11  Commission Budget Priorities Budget Discussion 
09/25  Central Services budget Commission briefing 
10/09  Operating division budgets Commission briefing 
10/23  Tax Levy & Draft Plan of Finance Commission briefing 
10/23  2019 Preliminary Budget document available to Commission 
10/25  2019 Preliminary Budget document available to the public 
10/30  NWSA Budget study session by Managing Members 
11/13  NWSA Budget adoption by Managing Members 
11/13  First reading of budget resolution and public hearing 
11/27  Second reading and final passage of 2019 Budget 
12/03  File the 2019 statutory budget with King county 
12/14  Publish the 2019 Final Budget to the public 

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