11b. Presentation - 2022 Maritime and EDD Operating and CIP Budgets Briefin

Maritime Division           Item no. 11b_supp
Meeting date: October 12,2021




2022 Preliminary Budget
October 12, 2021

2022 Maritime Division Budget Timeline

2022 Business          CommissionBudget           Budget BriefingOperating          First Reading &First Reading &        2nd Read2nd Read ing &ing &
Plan G uidance          DevelopmentBudget                Budget             Public HearingPublic Hearing         Final Pass         Final Pass age ofage of
an d CIP              BriefingRetreat                              for 2022 Budgetfor 2019 Budget        2019 Bu       2022 Bu dgetdget
Devel opment                                   Briefing
(July 10)                   (Oct 9)                (Mid-November)           (Late Nove mber)
(Ju ne 3)                      (July 29)                    (Oct 12)                     (Nov 9)                      (Nov 1 6)




2

Century Agenda Drives Division Plans and Budgets
CENTURY AGENDA OBJECTIVES
Position the Puget Sound Region as a
Premier International Logistics Hub
Advance this Region as a Leading Tourism
Destination and Business Gateway
Responsibly Invest in the Economic Growth
of the Region and all its Communities
Be the Greenest and Most Energy Efficient
Port in North America
Become a Model for Equity, Diversity and
Inclusion
Be a Highly Effective Public Agency

Century Agenda Drives Division Plans and Budgets
CA Goal                        Department & Initiatives         Key Metrics
Waterfront Project Management
Advance maritime industries through               Progress of completion on Maritime
Invest responsibly in the economic growth
innovation.                                       Innovation Center.
of the region and all its communities.
Strategic investment/management of               % projects on time, within budget.
Port facilities.

Invest responsibly in the economic growth        Cruise Operations & Development                   Outreach: number of business reached
of the region and all its communities.                 Expand benefits of Cruise.                         through cruise marketing efforts.
Preserve industrial lands.                             % of Shorepower installed at P66.

Maritime Environment & Sustainability
Meet increased energy needs.                        Percentage of renewable energy.
Be the greenest and most energy efficient            Meet requirements for stormwater.              Percentage of agency requirements
port in North America.                               Reduce carbon emissions.                         met.
Percentage of GHG to 2005 baseline.


4

Maritime Priorities 2022

FOCUS ON EQUITABLE
RECOVERY



Focus in 2022 on Sustainabili ty & Equity                                          5

Summary SWOT: Maritime
OPPORTUNITIES                    THREATS
Cruise opportunity to move forward Equity and              Lingering public health concerns and additional
Sustainability priorities.                                        cruise operational requirements and protocols.
Take advantage of grants to fund capital projects.             High variability in construction pricing and supplychain
disruption impacting projects.
Increase awareness of trends, market shifts,
technological advancements in Maritime Operations.       Climate change is impacting fisheries.
Continue to look for CPI opportunities in times of             Increased concerns on impact of Cruise.
change.
Sensitivity to public opinion can impact Port
Maritime innovation initiatives can generate demand        efficiency.
for space and bring new energy to our properties.
Significant delays in permitting related to changes in
Opportunity to realize ROI from our investments in           Endangered Species Act.
sustainability and environmental initiatives.
In recovery, but not recovered.

6

Summary SWOT: Maritime
STRENGTHS                   WEAKNESSES
Strong delivery of cruise operation at premium rate           Expense and capital budgets limited until cruise
(moorage/passenger fees).                                revenue rebounds.
Project team has strong organizational                          Lack of planning resources creates inefficiencies in
understanding of Port policies, fundamentals &              projects.
processes.
Aging infrastructure.
Competitive advantage of physical assets.
Adapting workforce to ongoing change and transition.
Diverse, full life cycle in house maintenance
Work depends on external contracts, cumbersome
services with favorable customer satisfaction.
process.
Strong and well-integrated Maritime
Organizational Capacity constraints on growth.
Environmental team.
Diverse and desirable properties for
maritime/industrial.

7

Maritime Budget: Bottom Line Up Front
Budget Drivers                     Top and Bottom Line
Supporting growing Capital Plan                         Revenue at $59.1M
Combined NWSA and POS Capital Plans          Up $13.9M from 2021, down $3.8M
at Record High                                       from the 2020 (pre-Covid) budget.
Projects of Increased Complexity             Expenses at $57.9M
Maintaining our Assets                                       Up 6% (3% annually) from last
Backlog of work orders from COVID-19            "normal" budget in 2020.
Sustainability                                               Net Operating Income at $1.3M
Supporting Sustainability Framework
Incorporating Sustainability more broadly       Evaluating a longer term NOI target

Planning for a gradual re covery                                               8

Maritime Revenues
Overall planning a $13.9M annual increase,              Recreational Marinas & Commercial Operations.
$3.8M below 2020 budget.                           Moorage, Service, Equipment, Storage rate increases:
Cruise budgeted at 75% occupancy and risk-                      Active Commercial Fishing: 3%
adjusted sailings.                                               Non-Active Commercial Fishing: 3%
Promising year at the grain terminal. Increases                  Recreational Boating: 5%
from Louis Dreyfuss rates taking effect.                        Commercial Maritime: 5%
In $000s
MARITIME REVENUE BY BUSINESS GROUP
$60,000
$50,000                                                                                                                                                          Cruise Operations
$40,000
Grain Terminal
$30,000
Maritime Portfolio
$20,000
Management
$10,000                                                                                                                                                         Recreational Marinas &
Commercial Ops
$-
2017 Actual                    2018 Actual                    2019 Actual                    2020 Actual                   2021 Budget                   2022 Budget
Revenue returning to pre-pan demic levels                                     9

Maritime Expenses
Compared to 2020 Approved Budget                      Central services up $2.2M from increased property
insurance rates, higher allocation rate, increased
Direct Expenses down $.3M, top-level FTE vacancy
police deployment, and general inflation.
factor, elimination of 2 positions, and reductions in
travel.                                                        Overall Expenses up $3.5M or 6%.
Support Services up $1.8M - Increased FTE's and        FTE's  Seventeen New (Maintenance  8, Project
higher pay rates in Maintenance.                       Management - 7). Two positions eliminated.
*2019    2020    2021    2021    2022       Incr (Decr)
Proposed  Change from 2020
$ in 000's                                   Actual   Budge t    Budge t   Fore cas t   Budge t          $             %
Expenses
Total Direct                          18,776      22,637      20,904      20,554       22,087          (284)          -1%
Total Support Services              15,446      17,162      15,028      14,428       18,971         1,809          11%
Total Central Services / Other        14,423      14,598      14,311      14,041       16,804         2,206          15%
Total Expense                        48,644     54,396     50,243     49,023      57,861        3,465          6%
*Note 2019 Actual does not include $2M payment to the alliance and includes $1.9M favorable pension adjustment

Expenses reflect long-term  trend                                           10

2022 Maritime Budget Summary
Inclusive of Direct Charges & Allocations from Corporate, & Other Divisions
*2019     2020      2021      2021      2022       Incr (Decr)
Proposed  Change from 2020       Net Operating Income:
$ in 000's                                     Actual     Budge t     Budge t    Fore cas t     Budge t       $         %
Ship Canal Fishing & Operations                    3,929         4,264         4,135         4,123         4,211        (53)       -1%              Up $6.2M from 2021.
Elliott Bay Fishing & Commercial Operations          6,095         5,123         4,509         4,882         4,717       (406)       -8%
Recreational Boating                             12,484        13,361        12,915        12,838        13,731        370         3%              Down $7.3M from 2020 Budget.
Cruis e                                          22,410        26,261         8,558         9,000        20,574      (5,687)      -22%
Gra in                                            4,266         3,490         4,903         5,779         5,900      2,410        69%
Maritime Portfolio Management                    10,108        10,428        10,259        10,034         9,986       (443)       -4%
Other                                               (3)          11            0            0           19          8        79%         Net Operating Income Target
Total Revenue                                  59,289       62,938       45,280       46,656       59,137     (3,801)      -6%
Expenses                                                                                                                                  Historically NOI Covered 50-80% of
Maritime (Excl. Maint)                           13,789        16,881        15,539        15,439        16,022       (859)       -5%
Economic Development                          4,987        5,756        5,365        5,115        6,065        309        5%              Depreciation (Investment Costs).
Total Direct                                 18,776       22,637       20,904       20,554       22,087       (551)      -2%
Maintenance Expenses                          12,186        13,073        11,595        11,095        14,624      1,552        12%             In 2020 added annual $2M
Envir Services & Planning                        2,250         2,681         2,140         1,940         2,542       (139)       -5%
Seaport Finance & Cost Recovery                   835         1,052          977          977         1,096         44         4%              Payment for T46.
Waterfront Project Management                    175          356          316          416          708        352        99%
Total Support Services                        15,446       17,162       15,028       14,428       18,971      1,809       11%             In 2022 Budget:
IT                                             2,685         2,906         2,853         2,838         3,349        444        15%
Police Expenses                                 4,086         3,382         3,118         3,059         3,495        112         3%                      Covering 7% of Depreciation.
External Relations                                1,564         1,635         1,347         1,013         1,648         12         1%
Other Central Services                            5,810         6,429         6,749         6,887         8,027      1,598        25%                      A full Cruise season would
Aviation Division / Other                          278          245          243          243          285         40        16%
Total Central Services / Other                 14,423       14,598       14,311       14,041       16,804      2,206       15%                       cover ~75% of depreciation.
Total Expense                                   48,644       54,396       50,243       49,023       57,861      3,465        6%                      Cruise supports division-wide
NOI Before Depreciation                        10,644        8,541       (4,963)      (2,367)       1,276     (7,265)     -85%
Depreciation                                     17,627        17,244        16,899        16,899        17,510        265         2%                       investments.
NOI After Depreciation                          (6,982)      (8,703)     (21,862)     (19,266)     (16,234)    (7,531)     -87%
*Note 2019 Actual does not include $2M payment to the alliance and includes $1.9M favorable pension adjustment
On the path to recovery                                                   11

Maritime Division Financial Trends
In 000s                                Depreciation
Central Services / Other
80,000
Support Services
70,000                              Direct
Revenue
60,000
50,000
40,000
30,000
20,000
10,000
-
2014          2015          2016          2017          2018          2019        2020 Act     2021 Budget   2021 Forecast   2022 Budget
Revenue budgeted just below 2019 level, even with risk-adjusted cruise schedule.
After austerity measures in 2020 and 2021, expenses return to trend.

Expec t revenue to fully return to trend follo wing pandemic                               12

Cruise Sailings and Passengers



Budgeted COVID risk reserve in passengers and sailings.

Adj usting Cruise passengers and sailings f or COVID risk                                  13

Cruise Operations
In 000s
Depreciation
25,000                    Central Services / Other
Support Services
Direct
20,000
Revenue

15,000

10,000

5,000

-
2016                2017                2018                2019               2020 Act            2021 Budget          2022 Budget
Includes Terminal 91 and Pier 66 Cruise Terminals. Terminal 91 is managed by a terminal
operator and Pier 66 is on a long-term lease with Norwegian Cruise Line Holdings.
Even with COVID risk reserve, Cruise is profitable.
Return of Cruise profitability                                                      14

Recreational Marinas and Commercial Ops
Recreational
boating driving
marina revenues.


In $000's        SHIP CANAL FISHIN G & OPERATIONS REVENUE TR  END
5,000
4,500
4,000                                                        872
3,500                                                                                       926
885                         861
617
3,000                         494
599           650
2,500          -
470           494           554
2,000
1,500                                                       2,970
1,000        2,227           2,349           2,322                          2,448           2,474
500
-
2017 Act        2018 Act        2019 Act        2020 Act        2021 Bud       2022 Bud
Fishermen's Terminal Fishing                   Fishermen's Terminal Recreational
Salmon Bay Marina                          Maritime Industrial Center
Continued Demand for Commercial and Recreational Facilities                     15

Recreational Boating
In 000s
Depreciation
18,000                                  Central Services / Other
16,000                                  Support Services
Direct
14,000
12,000
10,000
8,000
6,000
4,000
2,000
-
2016             2017             2018             2019            2020 Act         2021 Budget       2022 Budget

Includes Shilshole Bay Marina, Bell Harbor Marina, Harbor Island Marina
Planned 5% rate increases in 2022.

16

Elliott Bay Fishing & Commercial Operations
In 000s                                   Depreciation
Central Services / Other
12,000                               Support Services
Direct
10,000

8,000

6,000

4,000

2,000

-
2016               2017               2018               2019              2020 Act           2021 Budget         2022 Budget
Includes waterside Terminal 91, Terminal 25, Kellogg Island, Terminal 18 North Dolphins, Pier 34 Dolphins,
Terminal 46 North Docks, Terminal 28, Pier 2, Pier 69.
Incremental revenue down from West Seattle Bridge Closure at Pier 2 and reduced business activities from
COVID at P69 and T91. High number of jobs supported by this business line.
17

Ship Canal Fishing & Operations
In 000s                                      Depreciation
Central Services / Other
12,000                                 Support Services
Direct
Revenue
10,000

8,000

6,000

4,000

2,000

-
2016               2017               2018               2019              2020 Act          2021 Budget         2022 Budget

Includes waterside of Fishermen's Terminal, Salmon Bay Marina, Maritime Industrial
Center
Planned rate increases in 2022: Fishing 3%, Recreation and Commercial Moorage 5% .
18

Maritime Portfolio Management
In 000s                         Depreciation
Central Services / Other
18,000                        Support Services
Direct
16,000
Revenue
14,000
12,000
10,000
8,000
6,000
4,000
2,000
-
2016                2017                2018                2019              2020 Act           2021 Budget         2022 Budget
Includes uplands of Shilshole Bay Marina, Terminal 91 (Industrial), Fishermen's Terminal,
Maritime Industrial Center, Salmon Bay Marina, T-115, T-108, and T-106.
Trammell Crow ground lease revenue at T-106 to phase in from 2023 to 2025.

Flat Revenue in 2022 with 30%+ grow th expected by 2025                            19

Grain Terminal Goal
In 000s                                                                     Depreciation                     Central Services / Other
7,000                                                                Support Services                Direct
Revenue
6,000
5,000
4,000
3,000
2,000
1,000
-
2016                2017                2018                2019              2020 Act           2021 Budget         2022 Budget

Positioned at Terminal 86, Grain Terminal is on a long-term lease with Louis Dreyfus
Company.
After Tariff challenges 2019 to mid-2020, significant increase in demand.
Continues to strong p erformance                                      20

Maritime Division
Service Group
Summary
2022 Preliminary Budget
October 12, 2022

Marine Maintenance
Total Department Expenses        2019      2020      2021      2022       Incr (Decr)                Maintenance Expense by MD/EDD Business ($millions)
Before charges and allocations                                      Proposed  Change from 2020
$ in 000's                             Actual     Budge t     Budge t     Budge t       $         %                     Conference & Event Centers
Facilities Mgt
Payroll                                        19,705        19,234        19,966        23,063       3,829        20%                      Central Harbor Properties
Outside Services                               1,756         3,184           927         1,739      (1,445)       -45%                                Bulk Terminal
Other                                       4,348         3,864         3,557         4,506        641        17%                 Maritime Industrial Properties
Capital / Non Operational                       (1,420)        (1,473)        (1,391)        (1,343)        130         -9%
Elliott Bay Fishing & Commercial Operations
Total Expenses                              24,390       24,809       23,059       27,964      3,155       13%
Ship Canal Fishing & Operations
Cruise Services
Maintenance expenses up $3.2M or 13% from 2020 Approved Budget                  Marina Office & Retail
Recreational Boating
Payroll expenses primary driver:
-     0.5    1.0    1.5    2.0    2.5    3.0    3.5    4.0
Assumes increases of 5.2% to 6% Represented and Non-Rep
Labor from 2021 wage rates.                                                Maintenance Expense by Division ($millions)
Five additional represented FTEs (pipe fitter, plumber, clean
team, stormwater).                                                          Aviation*
Five temporary craft positions.                                                          Stormwater
Reductions in Outside Services, due to lower expected project work
than 2020 but in-line with historical spending.                                Economic Development Dev
NWSA

Maritime
-      2.0    4.0    6.0    8.0    10.0   12.0   14.0   16.0
COVID driven b acklog and high demand for represen ted labor driving increase                       22

Waterfront Project Management
Total Department Expenses        2019      2020      2021      2022       Incr (Decr)                             5 Year Mid-Large Capital Plan (plus historical)
Before charges and allocations                                      Proposed  Change from 2020
$ in 000's                             Actual     Budge t     Budge t     Budge t                                                                          X $1,000,000
$       %
Payroll                                       2,938         3,820         3,576         6,039       2,218        58%                                                        Preliminary
Outside Services                                 13             7            10            25         18       246%
200
Other                                         80           94           35          147         53        56%
Capital / Non Operational                     (2,091)        (2,881)        (2,674)        (4,437)     (1,556)       54%                       180
Total Expenses                                 940        1,041          947        1,774        733       70%
160
Payroll & FTE Growth Drivers:                          140
120
Integration of Seaport and Marine Maintenance Project          100
Management.                                       80
Growth in capital program to consistently over $100M            60
per year.                                                          40
20
PM pipeline backfill due to actual and anticipated                  0
retirements.                                                      2019  2020  2021  2022  2023  2024  2025  2026
POS   NWSA
Heavy workloads in 2020 and 2021 have stretched staff.
Does not include small cap, tech, fleet, reserves, etc.
Does not account for 'pop ups or unplanned needs

R ecord capital plan driving increased ca pacity needs                              23

Maritime Environment and Sustainability
2022 Proposed Budget and Comparisons
Total Department Expenses        2019      2020      2021      2022       Incr (Decr)
Before charges and allocations                                      Proposed  Change from 2020
$ in 000's                             Actual     Budge t     Budge t     Budge t       $         %
Payroll                                         2,787          3,429          3,313          4,024         595        17%
Outside Services                               1,366         1,129           927         1,235        106         9%
Other                                        349          366           46           94       (271)      -74%
Capital / Non Operational                       (1,228)        (1,504)        (1,245)        (1,685)       (182)        12%
Total Expenses                                3,275        3,420        3,041        3,668        248        7%
Overall increased $248K/7% compared to 2020 original budget
Salary & Benefits                                                       Other
Increased $595K/17% from 2020 approved budget                          Decreased $(271K)/7% from 2020 approved budget
The unfroze two positions for Sustainability Framework and Permitting,                  Reductions in Travel/Training and other discretionary expenses
added Habitat position.                                                              Capital/ Non-Operational
Outside Services
Decreased $(182K)/12% from 2020 approved budget
Increased $106K/9% from 2020 approved budget
Higher percentage of project work
Returned to historical average
F ocus on Capital delivery and Century  Agenda goals                                  24

Security
Total Department Expenses        2019      2020      2021      2022       Incr (Decr)
Before charges and allocations                                      Proposed  Change from 2020                             Highlights
$ in 000's                             Actual     Budge t     Budge t     Budge t       $         %                           Equipment expenses up due
Payroll                                           224           321           306           325           5         1%
Outside Services                                 580         2,447         1,873         1,926        (520)       -21%                           to new batteries and chargers
Other                                          7           44           16           75         31        71%                         for security radios, 6 ID badge
Total Expenses                                 811        2,811        2,194        2,327       (484)     -17%                          readers, and cameras.
Contracted services in 2022
assumes all business back to
normal (2018 and 2019 level).
o  For special events,
used 2018 list as a
baseline to calculate
the 2022 security
expense with rate
increases year over
year, like Cruise, NW
Trend Event, Fleet
Week, etc.


25

New and Unfrozen FTEs
Category                       Description                                                                    Total
8 New: Fleet Asset Specialist, Material Inventory Specialist, Facility Maintenance
Manager - North Properties, Plumber , Sprinkler Fitter, Clean Team (2), Stormwater
Maintaining Port Assets           Team                                                                                  9.0
Unfreeze 1: Maintenance and Asset Analyst
7 New: Assistant Project Manager, Cost Estimator, Project Controller, System Analyst,
Supporting Growing Capital Plan  Project Manager III - NWSA, Project Manager I - NWSA, Project Manager I - EDD           13.0
Unfreeze 6: Project Manager III, Project Assistant, Capital Project Scheduler, Senior
Planner, Planner, Sr Environmental Management Specialist - Permitting
1 New: Environmental Program Manager - Habitat
Sustainability                                                                                                                  2.0
Unfreeze 1: Environmental Program Manager - Sustainability Framework
Organizational Effectiveness and  1 New: Seasonal half-time Specialists at Shilshole Bay Marina (2)
2.0
Revenue Generation            Unfreeze 1: Maintenance and Asset Analyst, Cruise Operations Specialist
Total                                                                                                                          26.0

Focus on maintaining and improv ing Port assets.                                  26

Full Time Equivalent Employees (FTEs)
2022 Maritime FTEs Summary
Description                      FTEs  Notes
2021 Approved Budget               262.5
Changes in 2021:
Mid-Year Approvals                      1.0   Environmental Program Mgr - Habitat
Eliminated                              -2.0   Carpenter and Sign Shop
Transfer                                   0.0
2021 Baseline                         261.5
2022 Budget Changes:
Transfer                                   0.0
Eliminated                              -2.0
New FTEs Approved                  16.0
Net Change                       14.0
2022 Proposed FTEs                  275.5
Frozen FTEs Summary
Frozen FTEs as of Jan 2021            11.0
Mid-Yr Exemptions from HF              0.0
2022 Apprv'd to Unfreeze                 -9.0
Frzn FTEs to be eliminated              -2.0
TTL remaining Fzn FTEs             0.0

Total Employees = 27 5.5                                              27

Stormwater
Utility Summary
2021 Preliminary Budget
October 12, 2022

Stormwater Utility Budget
Year 2 of the SWU Strategic Plan:
Deploying a mobile field inspection
software
Creating a dashboard for real-time
analysis of infrastructure asset
management,
Evaluating and implementing
innovative green stormwater
infrastructure,
Creating a scoring matrix
incorporating equity, diversity and
inclusion to prioritize infrastructure
work.



4.6 Percent Rate Increase Adopted
Capital Plan for 5 years is total of $4.3 M for system renewal and repairs


29

Stormwater Utility Capital Budget Summary




30

Maritime
Appendix
2022 Preliminary Budget
October 12, 2022

Cruise Operations
Compared to 2021 Budget
Revenue up $12M / 140%
Assumes 75% occupancy and risk-adjusted
schedule at T91 based on CDC Framework for
Conditional Sailings (FCS)
Direct Expenses up $453K / 8%
Port Valet costs budgeted higher due to
increased participation assumed in 2022
Includes NWSA payment escalated at 2% per
agreement



32

Recreational Boating
2020      2021      2022        Incr (Decr)
Proposed   Change from 2021        Compared to 2021 Budget
$ in 000's                                              Budge t      Budge t      Budge t          $             %
Berthage and Moorage & Concession Services        12,331        11,891        12,621          730      6%
Utility Sales Revenue                                     498           477           506            29       6%              Revenue up $800K / 6.2%
Other Service Revenue                                 402          439          495            56      13%
Other                                               102          108           92           (16)     -14%                Shilshole Bay Marina rates will
Total Revenue                                      13,333       12,915       13,714          800      6%
Expenses                                                                                                                 increase 5%, and we are expecting
Maritime (excl Maint)                                   5,334          4,777          5,369           592      12%
Economic Development                             304          295          354           59      20%                 the occupancy will increase 1% in
Total Direct                                         5,639         5,072         5,723           651      13%                    2022.
Maintenance Expenses                              2,403         2,823         3,331          509      18%
Envir Services & Planning                                32            24            26             2      10%             Direct Expenses up $651K / 13%
Seaport Finance & Cost Recovery                       221          227          253           26      12%
Seaport Project Management                            70            67          182          115      172%                 Two additional half-time seasonal
Total Suport Service                                2,726         3,141         3,793           653      21%                    hires budgeted in 2022.
IT                                                    774          768          975          207      27%
Police Expenses                                         745           768           860            92      12%                  Increase in Utility rates.
External Relations                                         330           329           403             74       23%
Other Central Services                                  1,407          1,680          1,970           289       17%              Support Services up $653K / 20.8%
Aviation Division/Other                                 50            51            61             9      18%
Total Central Services/Other                       3,307        3,597        4,269          672      19%             Central Services up $672K / 18.7%
Total Expense                                        11,671       11,809       13,785        1,976      17%             Depreciation up $545K / 24.0%
NOI Before Depreciation                             1,662        1,106          (71)       (1,176)    -106%
Depreciation                                           2,546         2,268         2,813           545      24%
NOI After Depreciation                                (884)       (1,162)       (2,883)       (1,721)    148%

33

Elliott Bay Fishing & Commercial Operations
2020      2021      2022        Incr (Decr)
Proposed   Change from 2021           Compared to 2021 Budget
$ in 000's                                     Budge t      Budge t      Budge t          $              %
Berthage and Moorage & Dockage         2,518        2,328        2,411           83      4%                Revenue up $199K / 4.4%
Space Rental                             1,776         1,523         1,531             8      1%
Utility Sales Revenue                         511           503           521            18       4%                        Expecting 5% rate increase for
Other                                     258          135          224           89      66%
Total Revenue                             5,064        4,489        4,688          199      4%                       moorage, service, equipment rental
Expenses
Maritime (excl Maint)                        3,101          2,886          3,186           301      10%                        and storage, 3% tariff rate increase
Economic Development                    184          316          149         (168)     -53%
Total Direct                              3,284         3,202         3,335           133       4%                        2022.
Maintenance Expenses                   1,803         1,146         1,832          686      60%
Envir Services & Planning                     17            12            15             3      24%                 Direct Expenses up $133K / 4.2%
Seaport Finance & Cost Recovery            145          133          152           19      14%
Seaport Project Management                 38            39            87            48      121%                    Travel & other employee expenses
Total Suport Service                     2,004         1,331         2,086           755      57%                       up $31K.
IT                                         378          380          411            31       8%
Police Expenses                             410           377           431            55      15%                 Support Services up $755K / 56.8%
External Relations                              180            164            200             35       21%
Other Central Services                        776           833           971           139       17%                  Central Services up $264K / 14.9%
Aviation Division/Other                      21            20            24             4      20%
Total Central Services/Other            1,766        1,774        2,037          264      15%                 Depreciation Flat
Total Expense                              7,054        6,306        7,459        1,153      18%
NOI Before Depreciation                  (1,990)       (1,817)       (2,771)        (954)     52%
Depreciation                                2,988         2,972         2,970            (2)      0%
NOI After Depreciation                   (4,978)       (4,790)       (5,741)        (952)     20%

34

Ship Canal Fishing & Operations
2020      2021      2022        Incr (Decr)                Compared to 2021 Budget
Proposed   Change from 2021
$ in 000's                                  Budge t      Budge t      Budge t          $             %
Berthage and Moorage & Dockage         3,708        3,736        3,815           79      2%                  Revenue up $71K / 1.7%
Space Rental                               250          192          171           (21)     -11%
Utility Sales Revenue                           83            84            97            13      15%                         Includes a 3% rate increase for
Other                                     170          123          123            0      0%
Total Revenue                             4,211        4,135        4,206           71      2%                         commercial fishing, 5% for others.
Expenses                                                                                                          Small decrease in Maritime
Maritime (excl Maint)                        3,368          2,732          2,965           234       9%
Economic Development                     67           70           72            2      2%                       Industrial Center moorage.
Total Direct                              3,435         2,802         3,037           235       8%
Maintenance Expenses                   1,922         1,633         2,570          937      57%
Envir Services & Planning                     13            11            12             1      12%                    Direct Expenses up $235K / 8.4%
Seaport Finance & Cost Recovery             89          101          113           12      12%
Seaport Project Management                 50            33          103            70      209%                       Payroll expenses up $64K / 5.0%.
Total Suport Service                     2,074         1,778         2,798         1,020      57%                        Utilities expenses up $50K / 6.8%.
IT                                         357          419          458            40       9%
Police Expenses                             292           343           379            36      11%                        Travel expenses up $29K.
External Relations                             130           146           180             33       23%                         Offset by $62K down in Bad Debt.
Other Central Services                        576           740           878           138       19%
Aviation Division/Other                      16            18            22             3      18%
Total Central Services/Other            1,370        1,667        1,917          251      15%
Support Services up $1,020K / 57.3%
Total Expense                              6,879        6,247        7,753        1,506      24%
NOI Before Depreciation                  (2,668)       (2,112)       (3,546)       (1,435)     68%                  Central Services up $251K / 15.1%
Depreciation                                1,975         2,138         2,146             9       0%
NOI After Depreciation                   (4,643)       (4,249)       (5,693)       (1,443)     34%                  Depreciation Flat

35

Maritime Portfolio Management
2020      2021      2022       Incr (Decr)       Compared to 2021 Budget
Proposed  Change from 2021    Revenue down $273K / -2.7%
$ in 000's                                    Budget      Budget      Budget        $          %
Maritime Portfolio Management                                                            Space Rental Revenue at MIC $233K below
Marina Office & Retail                   3,933       4,006       3,359      (648)     -16%         2021 budget.
Maritime Industrial                         3,959       4,225       4,191       (34)      -1%
Utilities                                         2,536        2,028        2,436        408        20%          Decreased Space Rental Revenue at FT $368K
Total Revenue                       10,428     10,259      9,986     (273)     -3%        from FVO winding down their operations
PM Direct                           3,940      3,762      4,201      439      12%
EDD PM Direct                      351       314       389      75     24%        $238K and inability to raise rents on rent
EDD Other                          394       175       376     201    115%        renewals during the pandemic $130K.
MD Direct                           497       341       440       99      29%
Total Direct                         5,182       4,592       5,406      815      18%        Decreased Space Rental Revenue at T91
Maintenance Expenses                 3,334      3,116      3,944      828      27%         Industrial $248K due to Lineage surrendering
Enviromental & Sustainability             377         254         323        69       27%
Seaport Finance & Cost Recovery         244        237        268       30      13%         building 28 & 39. This is partially offset by
Seaport Project Management               64         63        137       73     116%         increased Space Rental Revenue at T106
Total Support Services              4,019      3,670      4,671    1,001      27%
Police Expenses                          699        689        771       82      12%         $176K.
Other Corp Expenses                   2,275       2,411       2,930      519      22%        Utility up $408K mainly electricity.
Total Central Services/Other        2,974      3,100      3,701      601      19%
Total Expense                       12,175     11,363     13,778    2,416     21%    Direct Expenses up $815K / 17.7%
NOI Before Depreciation              (1,746)     (1,103)     (3,793)   (2,689)   -244%        T91 Other Contracted Services up $280K
Depreciation                             2,479       2,446       2,481       36       1%
NOI After Depreciation               (4,225)     (3,549)     (6,274)   (2,725)    -77%        MIC Tenant Improvements up $102K
Support Services up $1,001K / 27.3%
Central Services up $601K / 19.4%
Depreciation up $36K / 1.5%
36

Grain Terminal
2020      2021      2022       Incr (Decr)               Compared to 2021 Budget
Proposed  Change from 2021
$ in 000's                                          Budge t      Budge t      Budge t        $          %                      Revenue up $997K / 20%
Leasing Revenue                                 3,490        4,903        5,900        997       20%
Total Revenue                                     3,490        4,903        5,900       997       20%                     Consistent with strong performance
Expenses                                                                                                                2021 YTD (up 32% vs 2021 budget).
Maritime (Excl. Maint)                                  234           191           245          54         28%
Economic Development                            55           46           46         (0)        0%
Total Direct                                       289          237          291         54       23%                 Direct Expenses up $54K / 23%
Maintenance Expenses                            642          748          323       (426)      -57%
Envir Services & Planning                            107            58            76          18        31%                      Higher insurance costs.
Seaport Finance & Cost Recovery                     54           48           53          5        11%
Waterfront Project Management                      11           10           24         13       131%
Total Support Services                            814          864          475       (389)      -45%                 Support Services down $389K / -45%
IT                                                 103            80            92         12        15%                Central Services up $107K / 16%
Police Expenses                                     196           162           181         19        12%
External Relations                                       86             69             85          16         23%                  Depreciation Down $16K / -5%
Other Central Services                                 380           341           400          59         17%
Aviation Division / Other                              10             8            10           2        22%
Total Central Services / Other                     774          659          767        107       16%
Total Expense                                      1,877        1,761        1,533       (228)     -13%
NOI Before Depreciation                          1,614        3,143        4,367      1,224       39%
Depreciation                                          525           311           294         (16)        -5%
NOI After Depreciation                            1,088        2,832        4,073      1,241       44%


37

Maritime Environment and Sustainability
2022 Business Plan Highlights
Continuing core services
Increased service levels for Sustainable Evaluation Framework Policy
Directive.
Continue habitat work: PORTfolio mitigation bank (T117, T25, Auburn),
Quiet Sound program, Smith Cove, Alternative Bankline Stabilization Program,
OA Action Plan, Duwamish Valley Community Benefits Commitment, tree
canopy management.
Implement NW Ports Clean Air Strategy, GHG reductions, shore power,
Seattle Waterfront Clean Energy Strategy, new energy software platform.
Continue strong permitting and planning support for capital and expense
project delivery, including programmatic permitting approaches and regulatory
advocacy.
Continue dangerous waste compliance, spill response, and derelict vessel
abatement.
Progress remediation and cleanups on LDW, EWW, T91, T115 and other
sites.
Innovative Financing Strategy for seeking cost recovery (3rd
parties, grants, insurance and settlements, selling mitigation offsets.
Grant money ear marked in the Biannual State legislature budget for LDW,
EWW, T91 and T115.


38

Maritime Division FTE Rollup
2021     2021      2021     2021    2021     2022      2022     2022    2022
Mid
Approved     Year Eliminate d/  Internal Revised   Internal Eliminated Proposed Proposed  FTE     %
DEPARTMENT               Budget Approval    Layoff Transfer   Total  Transfer    FTEs New FTEs  Budget Change Change
By Departments:
Waterfront Project Management              23.00             -            -           -        23.00        8.00         -          7.00     38.00          15.00    65.2%
Cruise Operations                              4.00         -             -           -          4.00         -            -           -           4.00       0.00     0.0%
Marine Maintenance                        147.00        -          (2.00)        -      145.00             (8.00)              -          8.00     145.00      0.00     0.0%
Maritime Division Management                 5.00        -            -           -         5.00         -         (1.00)             -          4.00     -1.00   -20.0%
Maritime Marketing                           3.00        -            -           -         3.00         -            -           -          3.00      0.00     0.0%
Recreational Marinas & Commercial Oper a    41.50             -            -           -        41.50         -         (1.00)             1.00     41.50           0.00     0.0%
Elliott Bay Fishing & Commercial Operat      4.00         -             -            -          4.00         -            -           -           4.00       0.00     0.0%
Fishing & Operations Admin                  2.00        -            -           -         2.00         -            -           -          2.00      0.00     0.0%
Maritime Security                             3.00         -             -            -          3.00         -            -           -           3.00       0.00     0.0%
Recreational Boating                        20.50              -             -            -        20.50         -            -           1.00      21.50            1.00     4.9%
Ship Canal Fishing & Operations             12.00              -             -            -        12.00         -          (1.00)              -         11.00           -1.00     -8.3%
Maritime Environment & Sustainability         22.00             1.00               -            -        23.00         -            -           -         23.00            0.00     0.0%
Seaport Finance                              14.00              -             -           -        14.00         -            -           -         14.00            0.00     0.0%
Stormwater Utility                               3.00         -             -            -          3.00         -            -           -           3.00       0.00     0.0%
Total Maritime                         262.50             1.00       (2.00)       -       261.50        -          (2.00)     16.00   275.50           14.00    5.4%
Note: Frozen FTEs included in 2021 count

39

Economic Development Division



2022 Preliminary Budget
October 12

2022 Economic Development Division Budget Timeline

2022 Business          CommissionBudget           Budget BriefingOperating          First Reading &First Reading &        2nd Read2nd Read ing &ing &
Plan G uidance          DevelopmentBudget                Budget             Public HearingPublic Hearing         Final Pass         Final Pass age ofage of
an d CIP              BriefingRetreat                              for 2022 Budgetfor 2019 Budget        2019 Bu       2022 Bu dgetdget
Devel opment                                   Briefing
(July 10)                   (Oct 9)                (Mid-November)           (Late Nove mber)
(Ju ne 3)                      (July 29)                    (Oct 12)                     (Nov 9)                      (Nov 1 6)




2

Century Agenda Drives Division Plans and Budgets
Position the Puget Sound Region as a
Premier International Logistics Hub
Advance this Region as a Leading
Tourism Destination and Business
Gateway
Responsibly Invest in the Economic
Growth of the Region and all its
Communities
Be the Greenest and Most Energy
Efficient Port in North America
Become a Model for Equity, Diversity
and Inclusion
Be a Highly Effective Public Agency

Century Agenda Goal            Department & Initiatives         Key Metrics
Advance this Region as a Leading      EDD Tourism Department
Tourism Destination and Business        Tourism Recovery Initiative                 Passenger enplanement
Gateway                           Promote Air Travel and Cruise/Stay          increases
Tourism grant programs
EDD Diversity in Contracting
Become a Model for Equity,             Diversity in Contracting                    WMBE/DBE % Utilization
Diversity and Inclusion                   WMBE/DBE Outreach                      # WMBE/DBE firms utilized
WBE/DBE Technical Assistance
EDD Real Estate
Be a Highly Effective Public                Maritime/EDD property and lease             Property acquired/redeveloped
management
Agency                                                             Exceed energy efficiency goals
Real Estate Development
Pier 69 HQ Management
# small biz receiving recovery
Responsibly Invest in the               EDD Partnerships & Innovation
support through partners
Economic Growth of the Region         City ED Partnership Grants
Duwamish partnership                               # of emerging maritime
and all its Communities                  Innovation Initiatives                       companies assisted

4

EDD SWOT Analysis
Port Commission committed to Economic, Equitable & RE
Development
Strengths                     Grant programs advance Port priorities and partnerships
Talented, connected and respected team
Diverse attractive properties
Policy and regulations impacts efficiency and competitiveness
Weaknesses                Capital and Staffing constraints
Challenging Properties
Disruptive Port Work Patterns impacts Facilities
Washington can be global leader in maritime innovation
Opportunities                Expansion of regional small businesses (WMBE) initiatives
Hot industrial market supports RE Development opportunities
Tourism recovery including Cruise
Fragmentation of recovery efforts  regional
collaboration/scaling challenging
Threats                      Economic uncertainty impacts RE market, labor availability,
WMBE availability
Pandemic still impacts retail, office and conferences
Worsening Homelessness/public safety issues
5      5

EDD Up-Front Summary
*2019    2020    2021    2021     2022       Incr (Decr)         Top and Bottom Line
Proposed  Change from 2020          Revenue $18.8M; down $341K or 2%
$ in 000's                                  Actual   Budge t   Budge t  Fore cas t    Budge t         $           %
Revenue                             8,912      9,124      8,313      7,913        8,470       (654)       -7%             from 2020 Budget
Conf & Event Centers                    12,239       9,985       5,035       4,135        10,299         314          3%             Expenses $28.3M; down $1.1M or 4%
Total Revenue                          21,151     19,110     13,348     12,048       18,769       (341)       -2%                from 2020 budget
Expenses
Portfolio Management                   3,732      4,008      3,401      3,301         3,905        (103)        -3%             Net Operating Loss $9.5M; $.7M
Conf & Event Centers                   10,218       8,902       4,920       4,420         9,018         116          1%                favorable to 2020 budget
P69 Facilities Expenses                       215         230         222         177           228           (2)         -1%
RE Dev & Planning                       136        208        154        154          246         39        19%
EconDev Expenses Other                 930        932        835        695          842         (90)       -10%
Maintenance Expenses                  3,145      3,819      2,537      3,037        4,201        382        10%      Budget Drivers:
Maritime Expenses (Excl Maint)             253       1,317       1,060       1,060         1,279         (39)         -3%              Economic Recovery
Total EDD & Maritime Expenses      18,630    19,417    13,128    12,843       19,719        302        2%
Diversity in Contracting                     152         197         142         122           168          (29)        -15%              Conference & Event Centers at about
Tourism                             1,337      1,536      2,481      2,181        1,750        214        14%              75% historic volumes
EDD Grants & Innovation                 785      1,110      1,060      1,060        1,500        390        35%
Total EDD Initiatives                    2,274      2,843      3,683      3,363         3,418         575        20%               Increasing Equity, Diversity, and
Environmental & Sustainability              344          44          31          23            59           9         19%                Inclusion
Police Expenses                             61        233        209        205           229          (4)         -2%                      Increasing WMBE utilization in port-wide
Other Central Services                     5,732       6,708       4,242       4,051         4,749       (1,964)        -29%
Aviation Division                           114         123         120         120           128           5          4%                        capital plan
Total Central Services & Aviation      6,251      7,108      4,603      4,400        5,164      (1,954)      -27%                      Supporting impacted small businesses
Total Expense                           27,156     29,368     21,413     20,605       28,301      (1,077)       -4%              Targeted funding to help restart
NOI Before Depreciation                (6,005)   (10,258)    (8,065)    (8,557)      (9,532)       736         7%               Regional Tourism
Depreciation                               3,647       3,389       3,216       3,216         3,741         352         10%              Moving forward Maritime Innovation
NOI After Depreciation                  (9,651)   (13,647)   (11,281)   (11,773)     (13,273)       385         3%
*Note 2019 Actual includes a $708K favorable pension adjustment

Driving economic recovery while st abilizing income                                   6

Economic Development Revenues
2019    2020    2021    2021     2022       Incr (Decr)             Overall, up $5.4M or 40.5%
Proposed  Change from 2020
$ in 000's                      Actual    Budge t    Budge t   Fore cas t    Budge t          $             %                    compared to 2021 budget and
Bell Street Garage              1,899       2,150       1,454       1,054         1,463         (686)        -32%              just under 2020 budget.
Conf & Event Centers       12,239       9,985       5,035       4,135       10,299         314          3%
Leasing Revenue            7,035      6,973      6,859      6,859        6,998         25         0%                Conference & Event Centers
Other Revenue               (21)         2         0         0           9          7       380%                anticipating return to about 75%
Total Revenue             21,151     19,110     13,348     12,048      18,769       (341)       -2%
of pre-COVID revenue level in
In $000s                                                                                                                                          2022.
ECONOMIC DEVELOPMENT REVENUE BY BUSINESS GROUP
$25,000                                                                                                                             Bell Street Garage continues to
$20,000                                                                                                                               see lower demand but beginning
to recoup some concession
$15,000
revenue.
$10,000                                                                                                                             Leasing portfolio experiencing flat
$5,000                                                                                                                                revenue related tied to COVID
restrictions.
$-
2017 Actual          2018 Actual          2019 Actual          2020 Actual          2021 Budget          2022 Budget
Leasing and Foreign Trade Zone      Bell Street Garage      Conference and Event Centers

7

Economic Development Expenses
*2019    2020    2021    2021    2022      Incr (Decr)       Compared to 2020 Budget
Proposed Change from 2020    EDD & Maritime Expenses up $302K or 2%
$ in 000's                                             Actual    Budge t    Budge t   Fore cas t   Budge t        $            %
Expenses                                                                                                                   Increased volumes and labor costs at
Portfolio Management                         3,732      4,008      3,401      3,301      3,905        (103)        -3%          Conference & Event Centers.
Conf & Event Centers                         10,218       8,902       4,920       4,420       9,018         116          1%
P69 Facilities Expenses                              215         230         222         177         228           (2)         -1%          Increased Maintenance Wage rates.
RE Dev & Planning                             136        208        154        154        246         39        19%
EconDev Expenses Other                       930        932        835        695        842         (90)       -10%
Maintenance Expenses                        3,145      3,819      2,537      3,037      4,201        382        10%     Economic Development Initiatives up
Maritime Expenses (Excl Maint)                    253       1,317       1,060       1,060       1,279         (39)         -3%     $575K or 20%
Total EDD & Maritime Expenses            18,630    19,417    13,128    12,843    19,719        302        2%
Diversity in Contracting                            152         197         142         122         168          (29)        -15%          EDD Initiatives up $575K due to
Tourism                                  1,337      1,536      2,481      2,181      1,750        214        14%         remaining $350K Washington Tourism
EDD Grants & Innovation                       785      1,110      1,060      1,060      1,500        390        35%          Alliance Program along with increased
Total EDD Initiatives                           2,274      2,843      3,683      3,363      3,418         575        20%           investments in economic recovery.
Total Central Services & Aviation             6,251      7,108      4,603      4,400      5,164      (1,954)      -27%
Central services down $2M (27%)
Total Expense                                  27,156     29,368     21,413     20,605     28,301      (1,077)       -4%
*Note 2019 Actual includes $708K favorable pension adjustment                                                                         Reduction in Conference & Event
volumes driving down allocation rate.
FTE  Net decrease 1

Investments in Economic R ecovery                                         8

Economic Development Division Financial Trend
In 000s                           Depreciation
35,000                           *Program Expense
**Operating Expense
30,000
Revenue
25,000

20,000

15,000

10,000

5,000

-
2014          2015          2016          2017          2018          2019         2020 Act     2021 Budget   2021 Forecast   2022 Budget

Conference & Event Center bookings progressively declined in 2020 and 2021.
Expecting return to ~75% capacity in 2022.

Co nference and Event centers driving re venues and expenses                       9

Portfolio Management Financial Trend
In 000s
Depreciation
35,000                Central Services / Other
Support Services                                                                                                                         Revenue
Direct
30,000
Revenue                                                                                                            Conference & Event
Centers anticipating a
25,000
return to pre-COVID
20,000                                                                                                                                                     revenue level.

15,000                                                                                                                                                     Direct Expenses

10,000                                                                                                                                                     Variable Conference
Expenses follow revenue
5,000                                                                                                                                                        trend.

-
2016              2017              2018              2019             2020 Act          2021 Budget        2022 Budget
Includes non-alliance & upland real-estate at Tsubota, T-91 (General), T-86, P-69, Bell Street Garage, Smith Cove
Conference Center, Bell Harbor Conference Center, World Trade Center, Foreign Trade Zone, Pier 2, T-34, and T-102.

10

Diversity in Contracting
1.   Increase WMBE contracting utilization results to
reduce disparities in Port contracting processes
2.   Complete study of potential barriers to WMBE            In $000s           2021 Budget    2022 Budget   difference
utilization and identify/implement improvement         *Personnel            1,022         1,045        23
recommendations
Outside Service          335            563          228
3.   Provide PortGen workshops/trainings to interested
WMBE and DBE businesses                           Promo Expenses        68          98         30
4.   Implement communication and education                 General Expenses         53             83           30
programs to build external and internal support for
*Transferred out EDD Grant position
WMBE utilization                                      Outside services and promotions on following page
5.   Work with Public Sector partners to advance
WMBE and DBE utilization

Become a                               Diversity in Contracting                                WMBE/DBE %
ED D
Model for                                   WMBE/DBE Outreach                  K  ey
CA Goal                                                                        Utilization
Divers ity in
Equity, Diversity
and Inclusion              Contra cting          WBE/DBE Technical                 Me trics         # WMBE/DBE firms
Assistance                                              utilized

11

Diversity in Contracting Investments
Diversity in Contracting Investments                           2020         2021         2022      22-'21 Change
in $000s                                                     Budget      Budget      Budget           $
Business Accelerator (SKCF)                                        -                -          150              150
Highline Small Business Development Center ILA (SKCF)               -                 50         50              - 
WMBE/DBE Advanced Training (SKCF)                             50             50         50             - 
Airport DBE Workshop - FAA (Mini Conference/AAAE)                 -                -           60              60 
Barrier Study                                                            -                 -             80                80 
Outreach / Technical Assitance                                       145               60        105               45 
Marketing/ Communication/Design Services/Technical Writing Co        10               10          50               40 
Tabor 100 Resource Center                                          -                 50         60              10 
Government and Community Partnerships                             25              45         50                5
Total                                                             230             265       655             390





12

Tourism
1.   Implement Tourism Recovery initiative in
partnership with WA Tourism Alliance             In $000s         2021 Budget    2022 Budget  difference
2.   Utilize Tourism Grants to advance sustainable     Personnel              527           546          19
and equitable tourism events and destinations    Outside Service        1,789         938        (851)
3.   Organize/Sponsor Statewide Conference on
Promo Expenses         68           130          62
Sustainable Tourism
4.   Promote Cruise and Stay options in select          General Expenses        49            48          (1)
domestic and international markets               Includes $350K Tourism Recovery Initiative; Europe/Australia
5.   Partner with Visit Seattle and South Sound        promotions 234k, Sustainable Tourism Conference $75K, and
Regional Tourism Authority to leverage Port       Tourism grants 200k.
tourism investments and grant programs
Advance this                                         Tourism Recovery Initiative
CA    Region as a          EDD                            Key     Passenger enplanement
Promote Air Travel and
Goal   Leading Tourism          Touris m                                              increases
Destination and                                                Cruise/Stay
Departm  ent                                M   etrics    $ value of promotions, etc.
Business Gateway                                      Tourism grant programs


13

Real Estate Development & Management
Redevelop Port properties (ex. Des Moines
Creek W, CEM)                                 Total Real Estate Development & Management Expenses
Maintain 94% Occupancy within                  In $000s        2021 Budget  2022 Budget  difference
EDD/Maritime RE portfolio                        RE Development      633        755        122
Continue Terminal 91 Uplands                   P69 Facilities        1,578       1,733       155
planning/development
Portfolio Leasing       13,143        18,279        5,136
Move Maritime Innovation Center forward
Evaluate Acquisition/Partnership                 RE Development and P69, service Seaport and Airport.
development opportunities in partnership         Portfolio Leasing services entire Seaport.
with the Northwest Seaport Alliance
Manage, Operate & Maintain Pier 69
Headquarters
CA    Responsibly Invest in the         EDD       Real Estate Development       Key     Green buildings
Economic Growth of the
Goal                          Real Estat e &       Industrial Lands
Region and all its                                                                                                   Property
Communities                  Admin           Duwamish partnership          M   etrics     redeveloped/acquired

14

Economic Development and Innovation Partnerships
1.  Support Regional Economic Recovery via
financial partnerships with cities, Chambers,
Small Business Development Centers and other
partners                                           In $000s           2021 Budget  2022 Budget  difference
2.  Support Greater Seattle Partners' regional            *Personnel              595          788          193
economic recovery plan finalization and
Outside Service       1,060        1,500        440
implementation
3.  Support Duwamish Community Equity                 Promo Expenses         31            31            0
Partners' economic development initiatives          General Expenses      150         150          0
4.  Support maritime innovation initiatives to
*Transferred in EDD Grant Position
discover, promote and help advance promising
Includes funding for City ED Partnership grants $1.2M;
maritime ventures and startups
Regional Small Business Partnerships $150K,
5.  Advance and coordinate Port innovation
Greater Seattle Partners $130k, and Maritime Blue $150k
initiatives
Green buildings
CA    Responsibly Invest in          E DD     City ED Partnership Grants
the Economic Growth                                                                   K  ey
Goal                          Rea l Estate    Duwamish partnership                    Property
of the Region and all                                                                           Me  trics      redeveloped or
its Communities                   & A dmin         Innovation Initiatives                                acquired

15

Net Decrease of 1 FTE
2022 Economic Development FTEs Summary
Description                      FTEs  Notes
2021 Approved Budget                36.0
Changes in 2021:
Mid-Year Approvals                      0.0
Eliminated                               0.0
Transfer                                   0.0
2021 Baseline                          36.0
2022 Budget Changes:
Transfer                                   0.0
Eliminated                              -1.0   Business Development Director
New FTEs Approved                   0.0
Net Change                       -1.0
2022 Proposed FTEs                   35.0
Eliminated Business Development Director

16

EDD Budget: Impacts on
Equity, Diversity and Inclusion (EDI)
EDD Budget tangibly advances equitable economic development
Diversity in Contracting program advances utilization of Women, Minority
Business Enterprises and Disadvantaged Business Enterprises
South King County fund investments support small business recovery especially
for minority, immigrant and refugee owned firms
Tourism grants that support ethnic events and destinations
Real estate development projects support apprenticeship utilization and priority
hire

17

EDD Budget Advances Century Agenda EDI Goals
Diversity in Contracting Department budget includes
funding for staff/program that supports WMBE and DBE
utilization.
Real estate development projects help advance Port
workforce initiatives that provide equitable access to
careers in Port-related industries
Working to establish equity lens for other key economic
development programs (ex. Tourism and City partnership
grants)
18

EDD Budget Request To Advance Equity
2022 Budget includes an additional 240k to support a
regional small business assistance initiative designed to
help BIPOC businesses
Helps fund expanded partnership with Cities, Chambers and
Small Business Development Centers to support aggressive
outreach to BIPOC businesses and other businesses in
underserved communities.

19

Training on Equitable Budgeting
EDD team members doing well in terms of applying equity lens
to budgets and programs
More training for staff/leaders on community engagement and
program design could be helpful as new or existing programs
are considered in terms of equity
Training on best practices in equitable economic development
could be helpful (WMBE accelerator models, regional
procurement initiatives, etc.)
20

Economic Development Division
Commission Briefing - Appendix
2022 Preliminary Budget

Portfolio Management
2020      2021      2022       Incr (Decr)          Compared to 2021 Budget
Proposed  Change from 2021
$ in 000's                                 Budget      Budget      Budget        $          %             Revenue up $5,412K / 40.5%
Portfolio Management                                                                               Conference & Event Centers anticipating
Central Harbor                             7,581        6,752        7,243       492         7%              a return to pre-COVID
T-91 Uplands                            1,512        1,526        1,188      (338)     -22%
Conference & Events Centers               9,985        5,035       10,299      5,264      105%         Direct Expenses up $4,944K / 49.1%
Foreign Trade Zone                           30           35           30         (5)      -14%            Variable Conference Expenses in follow
Total Revenue                        19,108      13,348      18,760     5,412       41%
PM Outside Services                      810         522         782       260       50%             revenue trend (food, labor).
PM Direct                           12,101       7,798      12,141     4,343       56%            Increased Capital Reserves
EDD Other                           1,704       1,450       1,798      348      24%
MD Direct                             447         307         300        (7)      -2%           Tenant Improvements & Broker Fees 
Total Direct                          15,062       10,078       15,021      4,944       49%              WTCW Suite 130 & 230
Maintenance Expenses                   3,817        2,534        4,201     1,667       66%            Energy Management Consulting Services
Enviromental & Sustainability               278          267          261         (5)       -2%
Seaport Finance & Cost Recovery           515         420         533       113       27%        Support Services up $1,893K / 57.6%
Waterfront Project Management              77           66          184       118      179%        Central Services up $546K / 11.9%
Total Support Services                4,687        3,286        5,179      1,893       58%
Police Expenses                           233          209          229        20        9%        Depreciation up $525K / 16.3%
Other Corp Expenses                     5,350        4,366        4,893       527       12%
Total Central Services/Other          5,583        4,576        5,122       546       12%
Total Expense                         25,332      17,940      25,322     7,382       41%
NOI Before Depreciation               (6,224)      (4,591)      (6,562)    (1,970)     -43%
Depreciation                              3,386        3,213        3,738       525       16%
NOI After Depreciation                 (9,610)      (7,805)     (10,300)    (2,495)     -32%

22

Net Decrease of 1 FTE
2021     2021       2021      2021     2021      2022      2022      2022     2022
Approved Mid Year Eliminated/   Internal  Revised   Internal Eliminated  Proposed Proposed  FTE     %
DEPARTMENT                 Budget Approval    Layoff  Transfer   Total  Transfer    FTEs New FTEs  Budget Change Change
By Departments:
EDD Mgt                            4.00      -         -        -      4.00     1.00     (1.00)       -      4.00      0.00    0.0%
Facilities Mgt                                   5.00         -             -           -         5.00          -            -            -         5.00        0.00      0.0%
Maritime Portfolio Mgmt                     3.00        -           -          -        3.00         -           -           -        3.00       0.00     0.0%
Portfolio Management                      11.00        -           -          -       11.00        -          -           -       11.00       0.00     0.0%
Re Dev Planning                            2.00        -           -          -        2.00        -          -           -        2.00       0.00     0.0%
Diversity in Contracting                        8.00         -            -           -         8.00       (1.00)         -            -         7.00       -1.00    -12.5%
Tourism                                 3.00       -          -         -       3.00        -          -          -       3.00       0.00     0.0%
Total EDD                            36.00       -          -         -     36.00        -       (1.00)        -     35.00      -1.00   -2.8%
Eliminated Business Development Director
Transferred EDD Grants role from Diversity & Contracting to EDD Management


23

Maritime and Economic Development
Draft 2022-26 Capital Improvement Plan (CIP)
October 12, 2021

1

Agenda
Priorities going forward
Economic Recovery
Improving Capital Project Delivery
Draft 2022-2026 CIP
Key projects discussion
Project Delivery Recommendation
Additional resources

2

CIP Timeline

Review Initial
2022-2026 CIP
Preliminary         Continue to Refine                              2022 Tax Levy &
Planning and                                 CIP, Funding         MD/EDD Budget         Draft Plan of           Approval of
Development           MD/EDD           Capacity and           Briefings         Finance Presented       2022 Budget
2022-2026 CIP &           Budget                                 to Commission
Funding
October 12                                 November
May/June                              August/Sept.                             October 26
July 29




3

Capital Improvement Plan Priorities
Asset              Financial          Community and
Stewardship:         Sustainability:         Environment:
Maintaining the Port's capital      Making investments that support        Stewarding our environment
assets and preserving Seattle's     maritime industries and the Port's       responsibly, partnering with
iconic working waterfront           long term funding capacity         surrounding communities, and
promoting social responsibility




4

Capital Improvement Plan Status & Certainty
Degree of Uncertainty                                                                                        Projects > $5M
Port historically delivers 80 percent  of CIP over a five-year period                         5

Draft 2022 to 2026 CIP: $378M
$ millions                            Total Project Cost
Project Group/Name                            Status                2022   2023   2024   2025   2026  5Y Total Current Previous Change
Large                                                                       14.9    47.9    81.0    67.5    44.6    255.9    528.6     452.7     75.8
Duwamish River People's Park (T117 Restoration)     5  In Construction         2.5     0.3     0.3     0.3     0.3       3.6     19.8      23.6     (3.7)
Terminal 91 Berth 6 & 8 Redevelopment              4  In Design              1.3    20.7    39.0     0.8     -        61.8     65.2      40.0     25.2
Terminal 91 Uplands Development Phase I            4  In Design              1.5     2.1    23.1    22.4     -        49.1     50.3      48.5      1.8
Maritime Innovation Center                          4  In Design              1.3     6.0    11.1      -        -        18.4     19.9      16.0      3.9
Pier 66 Shore Power                                 4  In Design               7.5     8.8     0.0      -        -        16.3     17.0      16.7      0.2
Terminal 46 Replace North Pier Structure              3  Pre-design              -        2.5     2.5    30.0    25.0      60.0     60.2      49.5     10.7
Jack Block Park Pier Replacement                     3  Pre-design             0.3     0.7     3.5     3.5      -         8.0       8.3       4.0      4.3
Terminal 91 New Cruise Gangways                  3  Pre-design            0.5     6.5     0.0     -       -        6.9      7.0       6.9      0.1
Terminal 91 Uplands Phase 2 Buildings               2  Bus Plan Prospective    -        -        -       0.6     1.7       2.3    166.0     144.0     22.0
Fishermen's Terminal Gateway Building              2  Bus Plan Prospective    -        -        -        -       1.9      1.9     53.1      53.4     (0.3)
Fishermen's Terminal Northwest Dock Improvements 2  Bus Plan Prospective    -       0.5     1.5    10.0    15.0     27.0     52.0      42.5      9.5
Terminal 91 Uplands Phase 2 Utility Infrastructure     2  Bus Plan Prospective    -        -        -        -        0.6       0.6       9.8       7.7      2.1
Mid-Cap                                                                 20.8    19.1    13.6     6.8     6.0     66.3
Small                                                                        5.1     1.9     1.0     1.1     2.0     11.1
Fleet/Technology                                                              2.7     2.8     2.6     2.3     1.7     12.2
Tenant Improvements                                                      0.8     0.6     0.6     0.6     0.6      3.0
Management Reserve Cash Flow Adjustment                                 (10.3)   12.1    10.3     7.0    11.0     30.0
Total  $33.9   $84.3 $109.0   $85.3   $65.9   $378.4
Also includes non-material spending in 2022 on large projects at/near completion (BHICC Modernization, SBM Service Buildings, T91 NW Fender)
Moved into capital plan this year - condition assessment to be completed in 2022
Total estimated project cost as of 2021 Capital Plan (Q3 2020)
Project Categories: Large >$5M, Mid $1M to $5M, Small <$1M
* Fourth Cruise Berth ($137M) has been moved to status 1 (Prospective) and is not funded

6

Large Projects Moving Forward
T46 North Pier Structure: $60M                T91 Berth 6&8: $65M
Preliminary assessment suggests                At 30% design
replacement with in-kind structure                   Cost estimate increased due to seismic
Multi-use, such as fishing or research vessels                   issues
Design/permitting anticipated to start in          Construction anticipated in 2023
2023                                           To be validated by upcoming risk assessment
P66 Shore Power: $17M
SEPA process complete                     T91 Uplands: $225M
At approx. 40% design                       Phase I: $50M  10% design
MOU with City Light on cost share in             Phase II: $175M
negotiation
Pre-planning beginning 2025
Utility infrastructure + Building Development

7

Large Projects Moving Forward (2)
In Construction
Duwamish River People's Park (T117 Restoration)
T91 NW Fender - completion in 2021
In Design
P66 Shore Power
Maritime Innovation Center
Pre-design work underway
FT NW Dock Improvements
Jack Block Park Pier Replacement
Gateway Park South/Shoreline Restoration
Joint Venture (not included in MD/EDD CIP)
West Waterway Deepening ($28M)
8

Project Delivery Capacity
5 Year Mid-Large Capital Plan (plus historical)
X $1,000,000                             Assessment of delivery improvements
Preliminary                                   Additional project managers
200
180                                                                                               Improving career pathways
160                                                                                      Revised reporting structure
140
120                                                                                 Additional resources required to deliver
100                                                                                      Internal, Port-wide departments:
80
60                                                                                               Commission, executive, business managers, PMs,
40                                                                                                 CPO, engineering, legal, finance, external relations,
20                                                                                                 etc.
0
2019    2020    2021    2022    2023    2024    2025    2026                            Many resources shared with Aviation and NWSA
POS       NWSA      Total WPM                                         Potential operating budget impacts
External e.g., permitting, environmental
Shift of NWSA projects from South Harbor to North Harbor
Port CIP picks up as NWSA starts completion process                         review

9

Appendix


10

Capital Planning Guidelines
Maintain construction to help stimulate recovery across the region.
Capital planning should incorporate potential changes to facilities in
the wake of COVID-19.
New Projects should be:
prioritized according to the CIP Priorities and Budget Guiding Principles
timing of new construction should consider updated demand forecasts, funding
availability and project delivery capacity.
Project designs and environmental reviews should generally
continue to advance on top priority projects to preserve the option
to proceed if grant funding becomes available or the Port's financial
outlook improves sooner than expected.
Cost estimates should factor in cost escalation and the local bidding
environment in preparing and updating project budgets.

11

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