A. THE PORT OF SEATTLE The Port of Seattle, (the Port ), is a public enterprise with unique authority operating in an international, market-driven environment. The Port provides services to its customers in order to return benefits to the citizens of King County, giving careful consideration to the economic, social, and environmental implications of its decisions. The Port is now comprised of three operating divisions, namely, Maritime and Economic. The Division manages the Seattle-Tacoma International Airport, ( Sea-Tac ). The Maritime Division manages industrial property connected with maritime businesses, commercial and recreational marinas, cruise, grain and maritime operations. The Economic Division has portfolio management, and plans and facilitates the development of selected real estate assets, tourism and office of social responsibility, and a new small business incubator. Corporate provides high quality and cost-effective professional and technical services to the divisions and supports the overall goals of the Port; it also delivers projects and provides technical services in support of the business plans and infrastructure needs of the Port through Capital. In August of 2015, the Port of Seattle and the Port of Tacoma formed the Northwest Seaport Alliance (NWSA), which unifies the two ports marine cargo terminal investments, operations, planning and marketing to strengthen the Puget Sound gateway and attract more marine cargo and jobs to the region. The new NWSA is the third-largest trade gateway in North America, behind the ports of Los Angeles and Long Beach and the Port of New York/New Jersey. It is the first alliance of its kind in North America. Located in the Pacific Northwest in Washington State, the Alliance offers shorter U.S. - to-asia transits, as well as a deep connection to Alaska. The Alliance is a major center for containers, bulk, break-bulk, project/heavy-lift cargo, automobiles and trucks. It is connected to the second-largest concentration of distribution centers on the West Coast. The Pacific Northwest is a key region for inbound and outbound United States cargo, moving cargo not only for the regional trade, but also cargo headed to destinations throughout the entire U.S. Midwest, and this Alliance will help the region remain competitive into the future. Combining the strong cargo terminal operations will make the region more competitive in the global economy and create new jobs in Washington. Together, the ports can more efficiently deploy the significant investments each port has devoted to infrastructure and speak with a stronger voice on pressing regional and industry-related issues. The NWSA was formed as a Port Authority (PDA), which is a separate legal entity from the two home ports, and will act as the exclusive manager and operator to manage the container, breakbulk, auto and some bulk terminals in Seattle and Tacoma. The airport, cruise business, marinas, Fishermen s Terminal, grain terminals, and certain industrial real estate, such as the Northwest Innovation Works and Puget Sound Energy facilities and Terminal 91 uplands, will remain outside the Alliance. B. HISTORY OF THE PORT OF SEATTLE The Port was established in 1911 in an effort by citizens to ensure public ownership of the Seattle harbor. The Port of Seattle was the first autonomous municipal corporation in the United States specifically tasked to develop harbor and Port facilities to encourage commerce. The Port opened Fishermen s Terminal in 1912, its first warehouse in 1915 and began working on the creation of Harbor Island. Since then, the Port has developed numerous properties as well as constructed the Seattle-Tacoma International Airport in 1949. The Port s task hasn t changed over the years but its scope of services has expanded considerably. The Port continues to upgrade and modernize its facilities to meet current market demands. The Port has added container terminals, a grain terminal, cruise terminals, marinas, public parks and viewpoints and contributed significantly to the development of public amenities along Seattle s waterfront. II-1
C. PORT OF SEATTLE FACILITIES AND SERVICES Sea-Tac Airport is located on 2,800 acres sixteen miles south of downtown Seattle. The Port has invested over $4.0 billion in capital improvements at the airport since 1999. The airport includes 3 runways that are 11,900 feet, 9,425 feet, and 8,500 feet in length and a subway system linking the concourses. Sea-Tac is the 13 th largest U.S. airport as measured by total passengers in 2015 and compared to other large airports, it has relatively high originations and destinations traffic. The Maritime Division operates 2 cruise vessel terminals with a total of 3 berths. The division also manages a fully automated Grain Terminal and Fishermen s Terminal, which is the home to the North Pacific factory trawler fishing fleet as well as other general purpose maritime facilities. In addition, the Maritime Division leases industrial property connected with these cruise, cargo, and factory trawler fishing businesses. The Economic Division manages the Port s holdings in commercial real estate, developable property, tourism, small business opportunities, and workforce development in the maritime and aviation industries. This allows the Maritime and Divisions to concentrate on their core businesses. II-2
FIGURE II-1: FACILITY MAP II-3
D. LONG RANGE PLAN II-4
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The full Long Range Plan can be found on the Port of Seattle website at http://www.portseattle.org/about/pages/default.aspx. II-9
STRATEGIC POSITIONING FOR GROWTH (SPG) As part of the 2017 budget process, the Port s three operating divisions undertook a new Strategic Positioning for Growth (SPG) budgeting initiative. This initiative focused on the Operating Divisions functions/activities and their alignment with the Port s strategies and objectives. A high-level summary of the 2017 operating budget resources dedicated to each of the four Century Agenda strategies can be found in the chart and table below. TABLE II-1: 2017 OPERATING BUDGET CENTURY AGENDA STRATEGIES ($ in 000's) Century Agenda Strategies Maritime EDD Total Strategy 1 - Logistics Hub 538 551 1,227 2,316 Strategy 2 - Tourism and Business Gateway 19,518 1,806 1,574 22,899 Strategy 3 - Small Business and Workforce 175 241 4,751 5,167 Strategy 4 - Greenest & Most Efficient Port 2,210 3,804 109 6,122 Total Century Agenda spending 22,441 6,403 7,660 36,504 Percentage of Portwide Century Agenda Spending By Division 61.5% 17.5% 21.0% 100.0% FIGURE II-2: 2017 CENTURY AGENDA STRATEGIES $6.1M Greenest & Most Efficient Port 17% $2.3M Logistics Hub 6% $22.9M Tourism and Business Gateway 63% $5.2M Total: $36.5M Small business and Workforce 14% II-10
E. COMMISSIONERS AND OFFICERS The Port Commission is the legally constituted governing body of the Port of Seattle. As a governing body of a special purpose municipal corporation, it is charged with the responsibility of fulfilling legislatively mandated purposes and objectives. The Port Commission is made up of five elected individuals. They are: John Creighton, President Tom Albro, Vice President Stephanie Bowman, Secretary Courtney Gregoire, Assistant Secretary Fred Felleman, Commissioner At Large The senior officers of the Port are: Ted Fick, Chief Executive Officer Dave Soike, Chief Operating Officer Dave Caplan, Sr. Director, Office of Strategic Initiatives Julie Collins, Sr. Director, Public Affairs Rodney Covey, Acting Chief of Police Paula Edelstein, Sr. Director, Human Resources Larry Ehl, Executive Chief of Staff David Freiboth, Sr. Director, Labor Relations Ralph Graves, Sr. Director, Capital Lance Lyttle, Managing Director, Division Dave McFadden, Managing Director, Economic Division Lindsay Pulsifer, Managing Director, Maritime Division Dan Thomas, Chief Financial Officer Craig Watson, General Counsel II-11
F. ORGANIZATION CHART FIGURE II-3: ORGANIZATION CHART King County Voters Commission Seaport Alliance Executive Office Internal Audit 962.9 FTEs Maritime 161.3 FTEs Economic 36.0 FTEs Corporate * 871.7 FTEs Facilities & Capital Program Airport Operations Cruise & Maritime Operations Portfolio & Asset Chief Financial Officer Legal Chief Operating Officer Capital Program Building Department Aeronautical Landside Fishing & Commercial Operations Recreational Boating Central Harbor Group Conference & Event Centers Accounting & Financial Reporting Finance & Budget Public Affairs Labor Relations Police Department Environment & Sustainability Airport Office Building Facilities & Infrastructure Utilities Security Fire Department Maintenance Maritime aarketing Marine Maintenance Foreign Trade Zone Program Maritime Portfolio Real Estate & Economic Tourism Finance & Budget Corporate Finance & Budget Maritime Finance & Budget Information & Communications Technology Human Resources Environmental & Sustainability Noise Program Maritime Environmental & Planning Stormwater Utility Small Business Risk Security & Preparedness Workforce Business Intelligence Capital Business Properties Project Engineering Parking Revenue Business Airport Dining & Retail Pier 69 Facilities Port Construction Services Seaport Project Office of Strategic Initiatives Central Procurement Office *For reporting purposes, Commission Office, Executive Office, and Internal Audit all roll up to Corporate. II-12