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of Seattle

COMMISSION
AGENDA MEMORANDUM                      Item No.        6b

ACTION ITEM                           Date of Meeting    February 27, 2018

DATE:    February 14, 2018

TO:       Steve Metruck, Executive Director

FROM:   Duane Hill, AFR Senior Manager Disbursements

SUBJECT:  Claims and Obligations January 2018

ACTION REQUESTED

Request Port Commission approval of the Port Auditor's payment of the salaries and claims of the Port
pursuant to RCW 42.24.180 for payments issued during the period January 1, 2018 through January 31, 2018
as follows:

Payment Type             Payment Reference    Payment Reference       Amount
Start Number          End Number
Accounts Payable Checks                  921673                  922215            $ 6,863,005.83

Accounts Payable ACH                  005119                  005833           5   54,295,371.62

Accounts Payable Wire Transfers              014808                   014831            $ 12,833,766.23
Payroll Checks                        188585                    188791            S       242,426.49
Payroll ACH                         840383                   844345            $ 9,618,465.67
Total Payments                                                              5   83,853,035.84


Pursuant to RCW 42.24.180, "the Port's legislative body" (the Commission) is required to approve in a public
meeting, all payments of claims within one month of issuance.

OVERSIGHT

All of these payments have been previously authorized either through direct Commission action or delegation
of authority to the Executive Director (ED) and through his or her staff. Detailed information on Port
expenditures is provided to the Commission through comprehensive budget presentations as well as the
publicly released Budget Document, which provides an even greater level of detail. The Port's operating and
capital budget is approved by resolution in November for the coming fiscal year, and the Commission also
approves the Salary and Benefit Resolution around the same time to authorize pay and benefit programs.
Notwithstanding the Port's budget approval, individual capital projects and contracts exceeding certain dollar
thresholds are also subsequently brought before the Commission for specific authorization prior to
commencement of the project or contractif they are below the thresholds the ED is delegated authority to

COMMISSION AGENDA - Action Item No. 6b                                  Page 2 of 3
Meeting Date: February 27, 2018

approve them. Expenditures are monitored against budgets on a monthly basis by management and reported
comprehensively to the Commission quarterly.

Effective internal controls over all Port procurement, contracting and disbursements are also in place to
ensure proper central oversight, delegation of authority, separation of duties, payment approval and
documentation, and signed perjury statement certifications for all payments. Port disbursements are also
regularly monitored against spending authorizations. All payment transactions and internal controls are
subject to periodic Port internal audits and annual external audits conducted by both the State Auditor's
Office and the Port's independent auditors.

For the month of January, $74 million in accounts payable payments were made to 759 vendors/contractors,
comprised of 2,933 vouchers and 13,669 accounting expense transactions. About 84 percent of the accounts
payable payments made in the month fall into the Construction, Contracted Services, Employee Benefits,
Payroll Taxes, NWSA Construction, Janitorial Services and Environmental Remediation  expense categories.
The following chart summarizes the top 15 expense categories by total spend.

Category               Payment Amount
Construction                        S    31,289,661.04
Employee Benefits                  S    10,081,464.43
Contracted Services                  S     6,745,357.28
NWSA Construction Costs           S     4,154,932.29
Leasehold Taxes                    S     4,140,466.68
Payroll Taxes                         S     3,923,113.56
Utility Expenses                       S     2,005,035.00
Janitorial Services                      S     1,254,359.19
Sales Taxes                           S     1,244,426.49
Software                          S     1,095,716.43
Bond Fees                         S      773,741.14
Maintanance Inventory             S      761,309.23
Environmental Remediation         S      703,993.50
Membership Dues                S      627,691.41
Parking Taxes                       S       627,586.95
Other Categories total                S     4,563,289.06
Port Net Payroll                       S     9,860,892.16
Total Payments                    $ 83,853,035.84

Appropriate and effective internal controls are in place to ensure that the above obligations were processed in
accordance with Port of Seattle procurement/payment policies and delegation of authority.

muMA
Debbi Browning/Port Auditors

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COMMISSION AGENDA  Action Item No. 6b                                  Page 3 of 3
Meeting Date: February 27, 2018


At a meeting of the Port Commission held on February 27, 2018, it is hereby moved that, pursuant to RCW
42.24.180, the Port Commission approves the Port Auditor's payment of the above salaries and claims of the
Port:

RYAN CALKlNS

CGURTNE'! GREGOIRE
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\FE FELLEFHSAN
PETER STElNBRUECK
[/   Port Commission