June 9, 2015: Maritime Division 2016 Business Plan

MARITIME DIVISION 2016 BUSINESS PLAN
June 9, 2015
MISSION:
Enrich our maritime legacy by leveraging our properties to create waterfront opportunities and grow
maritime jobs in a financially and environmentally sustainable way.
VISION:
A vibrant working waterfront generating economic vitality for the region
MAJOR AND NEW INITATIVES:

 Seaport Alliance: Complete transition of marine cargo properties and portfolio management
 Port Stormwater Utility: Implement for port owned properties within the City of Seattle
 Dramatic Growth: Leverage maritime properties to grow net income and economic benefit
o Fund and construct Shilshole Bay Marina’s new bathrooms/ lockers/laundry facility
o Develop Fisherman’s Terminal Strategic Plan and obtain Commission approval
o Modernize Pier 66 and Pier 91 for larger cruise ships (Big Ship Ready II)
o Develop habitat restoration into a line of business (port owned waterfront habitat)
 High Performance Organization: Deliver operational excellence and develop our employees
o Operational Excellence: Deliver safe, compliant operations and maintain port assets
 Integrate and optimize operations of the new Maritime Division
 Implement operational and safety practices to achieve zero injuries
o Talent Development: Develop staff capabilities, bench strength and opportunities
 Identify and implement targeted training to increase employee capabilities
 Develop and implement employee development plans and career paths
o Valued Communication: Provide information that is clear, concise and relevant
 Leverage technology to improve quality and efficiency of communications
 Develop and implement measures to improve Commission communications
STRATEGIES - SUMMARY:
Implement Century Agenda Strategies – Position the Puget Sound Region as a premier international
logistics hub
 Structure our relationships with Washington ports to optimize infrastructure investments and
financial returns (still a work is process with need for support from service groups
 Double the economic value of the fishing and maritime cluster
Implement Century Agenda Strategies – Advance this region as a leading tourism destination and
business gateway
 Double the economic value of cruise traffic to Washington State
Implement Century Agenda Strategies – Use our influence as an institution to promote small business
growth and workforce development
 Increase the proportion of funds spent by the port with qualified small business firms on
construction goods and services to 40% of eligible dollars spent
 Increase work force training, job and business opportunities for local communities in
maritime, trade, travel, and logistics
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Implement Century Agenda Strategies – Be the greenest, and most energy efficient port in North
America
 Meet all increased energy needs through conservation and renewable sources
 Meet or exceed agency requirements for stormwater leaving facilities owned or operated by
the Port
 Reduce air pollutants and carbon emissions
 Anchor the Puget Sound urban industrial land use to prevent sprawl in less developed areas
 Restore, create and enhance 40 additional acres of habitat in the Green/Duwamish watershed
and Elliot Bay
 Meet local, state, and federal environmental regulations as effectively and efficiently as
possible
Manage our finances responsibly – “Optimize” Maritime Financial Performance

 Meet 2016 financial targets
 Grow Maritime Division net operating income
 Reduce Port’s environmental liability through cost recovery
 Maintain existing assets and invest in new development to sustain and enhance Maritime vitality
 Provide timely, accurate and insightful financial information and analyses for the
Commission, Executive and other Leadership teams for decision making
 Ensure compliance with Accounting policies and procedures, and standards
High Performance Organization

 Align leadership, people and systems with strategic priorities and plans
 Strengthen a high integrity, continuous improvement culture
 Increase organizational/individual ownership for safe/secure work practices and healthy living
DIVISION DESCRIPTION:
The Maritime Division includes two major business groups: Cruise & Maritime Operations and Commercial &
Recreational Marinas. It also includes three service groups: Environmental Services & Planning, Finance &
Budget, and Marine Maintenance. These business and service groups oversee strategic planning, business and
facility development, maritime security and the management and operations of maritime facilities including
cruise, grain and multi-purpose terminals, commercial moorage, recreational marinas and related properties.
The Maritime Division and its facilities serve a diverse mix of year round and seasonal activities. May through
September, Smith Cove Cruise Terminal and Bell Harbor Cruise Terminal serve as homeport for cruise ships
headed to Alaska. October through May, Fisherman’s Terminal and Terminal 91, serve as homeport for the
North Pacific fishing fleet and factory trawlers. Throughout the year, recreational boats are served at Bell
Harbor Marina, Harbor Island Marina and Shilshole Bay Marina - home to a vibrant liveaboard community.
The Maritime Division also operates the Maritime Industrial Center and leases Terminal 86, a fully automated
grain terminal, along with other industrial properties connected with these maritime activities and businesses.
INDUSTRY ASSESSMENTS:
Cruise
The global cruise market continues to grow with many lines increasing their focus and deployment in Asia.
This market growth is supported by global fleet expansion with larger ships and new product innovations to
meet the more sophisticated demands of consumers. The Alaskan cruising market remains strong with cruise
lines deploying some of their best ships here in the Northwest.
Maritime Operations
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The industry continues to adapt to an evolving regulatory environment, fishing industry consolidation and
more limited marine terminal options. The North American Emissions Control Area (ECA) requires more
stringent emission reductions for ocean going vessels operating within coastal waters. This places a higher
burden of compliance on vessels transiting between Seattle and Alaska because the entire voyage is within the
ECA, when compared to vessels on transpacific voyages. In addition, ongoing consolidation of the commercial
fishing fleet is driving changes in facilities and services to meet the needs of larger homeport operations. The
availability of suitable and affordable marine terminals is growing increasingly scarce in the Northwest.
Recreational Boating
The Recreational Boating industry continues to face challenges such as the affordability of boats and boating,
attracting younger generations and minorities, and the emerging regulatory restrictions through taxes and
reduced access to water. For the first time in 16 years, the 2015 Seattle Boat Show reported the average age of
attendees dropped from 51 to 48 years old. Boaters are demanding upscale moorage facilities including high-
end amenities, finishes, and architectural details with more customization, automation and personalization.
Nationally, the industry experienced steady growth with the majority of marinas reporting improved margins,
flat moorage rates and steady or improved occupancy. The largest increased revenues came from in-water
rentals (kayaks, paddle boards, etc.), boat rentals, restaurants, leased slips, fuel, and boat sales. Washington
experienced strong growth in new boat sales, although the used boat market still composes the majority of boat
sales.
Fishing and Commercial

The Alaska commercial fishing industry remains strong with the Alaska fisheries recognized as the most
successfully managed in the world. With sustainable fisheries in the Bering Sea and Gulf of Alaska fisheries,
the commercial fishing industry that homeports in Seattle remains stable. Commercial fishing companies are
revitalizing their fleets by building new boats to replace aging fishing vessels. Although Alaska ports are
working to build better infrastructure to support the small boat fleets, Puget Sound continues to be very
attractive for off season moorage for all sizes of commercial boats due to better weather conditions conducive
to working on boats as well as an established parts supply and maintenance service network.
Grain
With a larger global supply of corn and a larger late season U.S. soybean crop, USDA is expecting
lower crop prices. U.S. exports of corn and soybeans are projected to have modest growth potentially
curbed by a strong US dollar and increased competition from record South American supplies. Global
soybean trade will continue to be driven by China, which accounts for nearly two-thirds of the world
trade.
Industrial Properties
The Seattle/Puget Sound industrial market has been consistent and steady. This trend is expected to
continue in 2016 and regional employment growth is expected to be positive. With positive growth
in both areas inching upward, absorption of industrial space has outpaced the delivery of new space
driving the high occupancy and low vacancy numbers reported in the industrial properties market.
Industrial rental rates will continue to be somewhat flat with the close-in large industrial markets
experiencing some modest increases.
BUSINESS ASSESSMENTS:
Cruise
Moderate growth is expected with several larger vessels already confirmed for Seattle in 2016. Revenue
passenger counts are expected to increase to more than 900,000. Based on continued surveys, the level of
satisfaction for Seattle cruise passengers exceeds industry standards. Passengers surveyed express a strong
desire to return to Seattle again in the future. The number of pre and post cruise passenger visits is steadily
increasing in the region.
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Maritime Operations
Fishing fleet homeport demand is expected to remain stable in 2016. Fishing, tug and barge companies are
making significant investments in vessel improvements and system upgrades. Other marine industrial
moorage is expected to remain stable with moderate growth over time. The energy sector is driving change in
maritime facilities as forward effort continues in oil exploration in north Alaska and as liquefied natural gas
(LNG) for marine vessels becomes more prevalent in our region.
Shilshole Bay Marina

The monthly moorage occupancy at Shilshole Bay Marina remains strong, achieving over 95%. The
continued high level of success is attributed to the marina’s location, docks with good maneuverability and
wide navigation channels, a strong and active liveaboard community, and strong customer focus. Over the
next five years, several marina improvements are planned or underway including replacement of 1960’s era
restroom/shower/laundry buildings that are not adequate by today’s standards; repairs to utilities, parking lot
pavement and the 1962 fuel dock building; and rehabilitation of two docks omitted from the 2006-2008 Dock
Replacement Project. The commercial property occupancy rate at Shilshole Bay Marina is currently at 100%.
The main focus throughout 2016 will be to retain existing tenants and maintain property values.
Fishermen’s Terminal and the Maritime Industrial Center
Commercial fishing vessel moorage demand remains steady with annual occupancy over 80%, even with the
majority of customers leaving to work in Alaska for various parts of the year. The small commercial fishing
boats (<40’) market is most at risk due to the expense of operating a boat, owners retiring and boats relocating.
This loss of commercial fishing moorage business is somewhat offset by monthly moorage for smaller
recreational vessels which do not require year round moorage.
The commercial property occupancy at both Fishermen’s Terminal and the Maritime Industrial Center is 97%;
better than the office industry wide average long term occupancy rate of 95%. The main focus throughout
2016 will be to retain existing tenants and maintain property values. Continuous efforts will be made in
offering excellent customer service, increasing rental rates levels on renewals and accommodating space
reductions and expansions while improving space for quality tenants.
Dock and moorage assets at Fishermen’s Terminal are all fairly new with the exception of the Northwest
Dock, which is the oldest dock and now approaching thirty years old. Available shore power systems for the
various sizes of boats set us apart from our competition. Over the next ten years, the capital plan for the entire
Fishermen’s Terminal property calls for up to $90M in projects including the NW Dock improvements, Docks
3 and 4 rehabilitation, corrosion protection to seawalls, Net Shed buildings roof replacements, and the
Maritime Industrial Center west and central pier resurfacing. These projects are subject to the overall Port of
Seattle capital plan funding priorities.
The financial outlook is projected to be stable as staff continues to look at Fishermen’s Terminal in an
enterprenial fashion for revenue generating opportunities. Revenue gains are expected from an increased
number of recreational vessels, while the recapitalization of the large vessel fishing fleet replaces old vessels
with new ones; not necessarily adding vessels to their respective fleets. Moorage rates at the terminal for
fishing and commercial vessels are at market when compared to other Puget Sound public ports. Recreational
vessel rates at the terminal are at market as compared to local marinas.
Grain
The Pier 86 Grain Terminal handles corn and soy beans from the upper Midwest states primarily for export to
China. Despite its age, operational improvements and automation help keep this facility competitive with the
Tacoma facility and several other facilities on the Columbia River. Although capacity is increasing at other
northwest grain facilities, the overall market projection is very strong and our terminal should remain
competitive and productive for a long time. With soybeans and corn export activity close to the volumes prior
to the 2012/2013 U.S. drought, this trend is expected to continue well into the 2015 harvest year, particularly
for soybean exports. For 2015, the U.S. share of global trade is likely to remain at the 2014 level even with
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higher competition from South America. (US Department of Agriculture, Grains and Oilseeds Outlook, Feb
2014).
Industrial Properties
Consistent with the regional figures discussed under the Industry Assessment, the forecast for the Seattle
Close-In industrial market is for lease rates to remain steady, with slight upticks in rents possible. Demand for
Seaport industrial properties is expected to remain consistent. The Maritime Industrial portfolio management
staff will continue to manage the industrial portfolio for the purpose of maximizing revenue by balancing
rental rates (demand) with fluctuating supply to match the performance of local Seattle Close-In market.
CHALLENGES AND OPPORTUNITIES:
Cruise Challenges
 Aggressive schedule of cruise line customers to expand facility passenger capacity by 2017
 Controlling the cost of building, maintaining and operating marine terminals
 Limited capital capacity for investment in cruise terminal modernization to support larger ships
Cruise Opportunity
 Increased demand for shorter cruise itineraries
 Customer interest in bringing larger cruise ships to homeport in Seattle
Maritime Challenges
 Adapting facilities and operations to meet dynamic regulatory environment
 Attracting new maritime customers and vessel homeport bases with changing land use environment
Maritime Opportunity
 Capability to set up short term Transportation Worker Identification Credential (TWIC) berths
 Opportunities for attracting vessel homeport bases for seafood, tug and barge fleets
Recreational Marina Challenges

 Retaining customers and facility availability during upcoming capital improvement projects including
Seattle waterfront construction projects.
 Maintaining assets responsibly within the Port system while still controlling costs
 Designing and rebuilding the Shilshole multi-use service buildings (restrooms/showers/laundry) in a way
that will meet the long term needs of our customers and boost our current revenue streams.
 Identify and implement new revenue opportunities that take into consideration marina customer needs
Recreational Marina Opportunity

 Implement new revenue opportunities that take into consideration marina customer needs
 Leverage new technologies to create efficiencies such as marina software update and handheld
technology
 Leverage partnerships to create opportunities with organizations such as the Corinthian Yacht Club, The
Adventuress, Seattle Yacht Club, and the Northwest Marine Trade Association.
Fishing and Commercial Challenges

 Potential for further slow decline of the small fishing boat fleet (<40’) due to market conditions
 Capturing the new business from the revitalized large commercial boat fleet is essential to remain the
homeport of the North Pacific Fishing Fleet The revitalized fleet is out fishing longer, in port shorter.
 Small recreational boat owners are discouraged from taking moorage when summer weather is poor
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 Future planning and capital investment in properties with aging infrastructure and implementing energy
conservation improvements to improve operating efficiencies and retain customers
Fishing and Commercial Opportunity

 Retain business from commercial fishing customers who are recapitalizing their fleets
 Continue to grow recreational vessel fleet during off-season as space allows
 Promote legislation that would incentivise continued growth within the fishing and maritime industry
Grain Challenge and Opportunity

 Grain volume can fluctuate significantly from year to year due to weather and market conditions
 Revenues from the grain terminal include a minimum annual guarantee and otherwise are subject
to upside and downside depending on volume
STRATEGIES AND OBJECTIVES
STRATEGY: IMPLEMENT CENTURY AGENDA STRATEGIES – POSITION THE PUGET

SOUND REGION AS A PREMIER INTERNATIONAL LOGISTICS HUB
Objective: Grow Seaport annual container volume to more than 3.5M TEU’s (Big Ship Ready)
Performance Measures Performance Target Actions

Co-Manage the East and 2017 - work with USACE Transition project to The Northwest
West Waterways towards 2017 Feasibility Seaport Alliance accountability:
deepening project with Completion
Contribute information and coordinate as
the U.S. Army Corps of 2020 - obtain project needed by USACE
Engineers (USACE) authorization and initiate
Draft Feasibility Study which will identify the
planning and design phase
tentative deepening plan in 2016
Acquire permit for Terminal 5 – Meet February Transition project to The Northwest Seaport
Terminal 5 modifications 2016 deadline Alliance accountability:
Complete environmental review
Prepare and submit permits
Manage the permitting process
Objective: Structure our relationships with Washington ports to optimize infrastructure investments
and financial returns
Support Washington Complete transition of Transition into contracting with the Northwest
ports partnership marine cargo properties and Seaport Alliance to:
initiative portfolio management Provide requested services and expertise
Provide requested financial information and
financial analyses
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Objective: Double the economic value of the fishing and maritime cluster
Grow existing and attract Increase/expand existing Support existing customer base efforts to grow
new seafood value seafood customers. Survey current customers at Terminal 91 to
determine what additional operational
requirements would be of benefit to them
Attract new seafood Recruit new seafood companies to the Port
customers.
Develop Fishermen’s Return to Commission by Obtain consultant, perform outreach, and
Terminal Strategic Plan end of Q4 with design develop concept alternatives
and obtain Commission concepts
approval
STRATEGY: IMPLEMENT CENTURY AGENDA STRATEGIES – ADVANCE THIS REGION AS A

LEADING TOURISM DESTINATION AND BUSINESS GATEWAY
Objective: Double the economic value of cruise traffic to Washington State

Grow our market share in Commitment from Provide POS representation in the Cruise Lines
homeport cruise industry customers for shorter International Association (CLIA) Executive
itineraries for 2017 and Partner Program at annual CLIA events
beyond including the Leadership Forum, Congressional
Commitment from new Caucus and Cruise3Sixty tourism/ travel trade
customer for homeport show. CLIA provides forum to influence
vessel for 2017 and beyond positive outcomes through engaged participation
of stakeholders, aligning messaging on critical
issues to speak through one voice
Support Cruise Shipping Miami- Seatrade
Miami, West Coast Collaborative, Cruise the
West (CTW). Work with other ports in CTW to
promote West Coast/ Alaska and Hawaii cruise
markets at annual industry conference and trade
show. Cost of booth shared with other Ports
Work with other Pacific Northwest ports on
joint marketing efforts to promote shorter cruise
itineraries.
Prepare Port of Seattle for Identify operational Work with the airport staff to improve
the changes occurring in improvements to increase passenger/bag efficiencies and logistics between
the cruise Industry – passenger terminal P66, SCCT and STIA
Larger ships will efficiencies
Work with Customs Border Patrol (CBP) to
eventually be on the West
improve passenger processing efficiencies (i.e.
Coast
explore onboard clearance) at P66, SCCT and
STIA
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Advance conceptual design Work with SPM, AV and consultants to
development, estimate cost, increase/optimize P66 passenger processing
schedule and permitting capacity and utilization
requirements for potential
Seek long-term berthing commitment from
cruise terminal expansion
cruise line for future large ship
Complete dredge of east Complete work with agencies to permit

cruise berth at Terminal 91 dredging project
Increase pre and post Increase the awareness of Partner with Visit Seattle, Washington Tourism
cruise passenger stays in the travel industry and top Alliance and local business on familiarization
Seattle and the region selling cruise travel agents events and cruise line visits. Coordinate work
on Seattle and the region with Port tourism effort
STRATEGY: IMPLEMENT CENTURY AGENDA STRATEGIES – USE OUR INFLUENCE AS AN

INSTITUTION TO PROMOTE SMALL BUSINESS GROWTH AND WORKFORCE
DEVELOPMENT
Objective: Increase the proportion of funds spent by the port with qualified small business firms on
Maintain high level of Continue record of more Execute contracts that support achieving target
contract and consultant than 40% of funds spent by
work performed by small the Maritime Division on
businesses contracting going to small
businesses
Objective: Increase work force training, job and business opportunities for local communities in
maritime, trade, travel and logistics
Support workforce Support workforce Interface with Manufacturing Industrial Council

development in maritime development in maritime of Seatttle
cluster cluster
STRATEGY: IMPLEMENT CENTURY AGENDA STRATEGIES – BE THE GREENEST AND

MOST ENERGY EFFICIENT PORT IN NORTH AMERICA
Objective: Meet all increased energy needs through conservation and renewable sources

Reduce electrical energy No increase in electrical  Install outdoor lighting upgrades at
needs through energy use from 2011 Fishermen’s Terminal and Jack Block Park
conservation with baseline by 2020 in 2016
positive financial metrics  Perform energy audit at one other Maritime
facility per energy performance plan for
inclusion in 2017 Capital Budget
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Increase use of renewable Include cost effective Identify one cost effective renewable energy
energy renewable energy project in project by Q4 2016
2017 Capital Budget
Objective: Meet or exceed agency requirements for storm water leaving facilities owned or operated
by the port
Meet conditions of Port No non-compliance Prepare annual report to Ecology to demonstrate

Phase I municipal conditions 2015 compliance. Track 2016 compliance for
National Pollutant 2017 report.
Discharge Elimination
System (NPDES) permit
Implement and manage Assess and survey condition  Collect stormwater fees for Port Stormwater
Port Stormwater Utility of all stormwater Utility accurately, correctly, and verifiably
to deliver efficient and conveyance by 2018 and beginning on January 1, 2016
effective stormwater complete maintenance of  Extend utility billing/lease boundary
services 30% of stormwater system database system to all sites by end of 2016
by 2020
 Assess 40% of stormwater infrastructure by
Q4
 Identify and plan for rehabilitation of
stormwater system for 200 acres
Objective: Reduce air pollutants and carbon emissions
Meet Northwest Ports Admin-1: Port Admin-1: Complete fuel efficiency (including
Clean Air Strategy goals Administration fuel anti-idling and other operational measures) plan
efficiency plan (including for Port fleet
anti-idling and other
operational measures) for
for Port vehicle fleet
maintained
Reduce carbon emissions Conduct 2015 The Climate Complete TCR inventory and submit to TCR
from port operations Registry (TCR) inventory
by Q3 2016
Downward trend in total Analyze results and trends in Green House
Green House Gases (GHG) Gases emissions
emissions reported to The Update energy performance plan to ensure
Climate Registry continued downward trend in Green House
Gases emissions
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Objective: Anchor the Puget Sound urban-industrial land use to prevent sprawl in less developed
areas
Industrial land use Replace Industrial Engage in in City public process associated with
regulations in City’s Commercial “IC” zoning land use studies and processes by
Comprehensive Plan with a new industrial zone  advocating with City staff,
update and in City land concept that better
use code support a incentivizes industrial  writing comment letters as opportunities
growing maritime development and maritime- arise,
business related development. Target  providing public testimony at City Council
2016 meetings, and;
City’s Comprehensive Plan  collaborating with a wide range of
update process retains stakeholders aligned with industrial
and/or improves the preservation and coordinate mutual actions
preservation of industrial as appropriate
land use policies and
protects freight corridors.
Target: Annually
City’s arena triggered land
use studies result in no
residential or lodging uses
in the stadium overlay
district and that these
studies result in enhanced
industrial friendly land use
regulations in the
Duwamish manufacturing/
industrial center. Target:
2016-2018
Objective: Restore, create and enhance 40 additional acres of habitat in the Green/Duwamish
watershed and Elliot Bay
Create 13 acres of habitat Construction underway by (assumes Trustee negotiations completed in

at T117 by 2017 Q3 2015)
Bid and award T117 project by Q1 2016
Start construction T117 project by Q3 2016
Develop habitat Develop a wetland habitat  Prospectus approved by interagency review
restoration into a line of mitigation bank and team Q1 2016
business evaluate other opportunities  Instrument approved Q3 2016
for revenue generation
 Investigate potential of using habitat sites for
City of Seattle ILF program mitigation
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Objective: Pursue better ways to address and implement environmental regulations
Implement Lower Duwamish 1. Activated carbon study construction in 2016.

Comprehensive Waterway Monitor results in 2017-2019
Environmental Response, 1. Complete Lower
Compensation, and Duwamish Agreed Order
Liability Act (CERCLA) work by end of 2019
and Model Toxics
Control Act (MTCA) 2. T115N Remedial 2. Submit draft report by Q2
projects as efficiently and Investigation and
effectively as possible Feasibility Study.
Submittal of draft
Remedial Investigation
in 2016
East Waterway 3. Draft final report resubmitted to EPA by end
3. East Waterway of Q2.
Feasibility Study
finalized in 2016. EPA
signs Record of Decision
(ROD) and design phase
initiated by 2020.
4. Design and implement 4. Complete design by Q4
the remedial action at
T30 cleanup site by Q4
2017
STRATEGY: MANAGE OUR FINANCES RESPONSIBLY - OPTIMIZE MARITIME FINANCIAL

PERFORMANCE
Objective: Meet 2016 financial targets

Maritime Division 2016 Net Operating Income of Continually monitor potential risks to Net
Net Operating Income $TBD Million at Operating Income
12/31/2016
Develop plans to mitigate or offset potential
losses resulting from these risks
Maintain and enhance Match occupancy targets of Meet or exceed property occupancy targets that
Maritime Industrial/ Seattle close-in market for match Seattle close-in market for our
Commercial Property industrial and commercial industrial/commercial property
Occupancy Rates and properties
Key negotiations include option to extend lease
Budgeted Revenue
with Marel Seattle Inc. consisting of three leases
at Terminal 91 and option to renew lease with
WSDOT at Terminal 106 East
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Achieve average moorage Recreational Marinas 95% All staff continue to provide an extraordinary
occupancy target for year customer service experience (GEM-Going the
Extra Mile)
facilities (Fishermen’s
Terminal/Maritime Operations and Marketing staff review monthly
Industrial Center) 80% occupancy, demand, and trends together. Adjust
action plans as needed.
Objective: Grow Maritime Division Net Operating Income
Complete Street Vacation Complete all T18 Reach agreement with City on Street Vacations
obligations to the City of requirements by the end of conditions
Seattle for Terminal 18 2016
Objective: Reduce the Port’s environmental liability through cost recovery
Partner reimbursements Port partners are invoiced Timely preparation of partner billings
invoiced and partners pay within 30 days after month- Monitor timeliness of partner payment with
in a timely manner end follow-up on any deliquencies
Department of Ecology Submissions are completed Proper set up of processes to to efficiently and
Grants are processed and reviewed within 30 effectively comply with grant requirements
quarterly days after quarter-end Timely preparation and review of grant
submissions
Insurance submittals are Submissions are completed Proper set up of processes to efficiently and
completed monthly and reviewed within 45 effectively meet insurance requirements
days after month-end. Timely preparation and review of insurance
submissions
Objective: Maintain existing assets and invest in new developments to sustain and enhance Maritime
Division vitality
Implement capital Shishole Bay Marina Work with Project Management to assist
projects Restroom Buildings: completion of projects per plans.
Complete design and begin
construction by Q3 2016
Comprehensive Maritime Expand plan to include Have updated list of needed projects available
Division Asset Commercial and for budget process
Stewardship Program Recreational Marinas Monitor plan and implement minor repairs per
Maritime Division Asset Stewardship Program.
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STRATEGY: HIGH PERFORMANCE ORGANIZATION
Objective: Align leadership, people and systems with strategic priorities and plans

Alignment of Maritime Maritime Division staff Maritime Division “All-Hands” meetings are
Division staff with have been briefed on held on a monthly basis where staff is briefed on
strategic priorities and Maritime strategic priorities current events including at least annually
plans and plans Maritime Division Strategic Plan.
Develop staff Identify and implement Provide introductory LEAN training
capabilities, bench targeted training to increase Provide other targeted training as identified
strength and opportunities employee capabilities
Objective: Strengthen a high integrity, continuous improvement culture
Work process Staff is process Leadership reinforces need to continually look

improvements improvement oriented for ways to do things more effectively and
implementing small efficiently, even with small changes
improvements as well as Celebrate successes in implementing process
more significant items. improvements both big and small
Objective: Increase organizational/individual ownership for safe/secure work practices and healthy
living
Maritime Security Provide support in Provide information and tools needed for each
Program Manager developing and maintaining department to develop COOP
supports Non-Aviation COOP Information sharing for individuals to be
Departments with their prepared at home and within their own work
Continuity of Operations environment
Plans (COOP)
Attain perfect score on 100% on year-end 2016 100% of Commercial and Recreational Marina
the Health and Safety Safety Plan audit (published employees complete all requirements and
Plan audit for marinas Q1) training as specified in the facility safety plans
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APPENDIX – MARITIME DIVISION BUSINESS AND SERVICE GROUPS

MARITIME DIVISION 2016 BUSINESS PLAN
 Appendix containing 2016 Business Plan Documents for:

▪ Cruise & Maritime Operations Pages A1-A6
▪ Commercial & Recreational Marinas Pages A7-A17
▪ Environmental Services & Planning Pages A18-A23
▪ Marine Maintenance Pages A24-A26
▪ Maritime Finance Pages A27-A31

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CRUISE & MARITIME OPERATIONS 2016 BUSINESS PLAN
MISSION:
Provide safe, secure and efficient cruise ship terminals and cargo handling maritime facilities which include
large vessel berthing docks for moorage, working apron areas and related equipment, cruise passenger
terminals, utilities and services to encourage current and new customers to move greater amounts of marine
tonnage and cruise passengers through the Port of Seattle. Market and provide cruise ship services and
facilities that maintain and grow the cruise business in the Seattle area. These facilities and services will
enhance the economy of the region, protect jobs and provide a reasonable rate of return to the Port of Seattle
and the citizens of King County while advancing the Port’s Century Agenda Goals.
DESCRIPTION:
Cruise & Maritime Operations is made up of multiple deep water commercial moorage facilities in and around
the harbor with over 17,000 lineal feet of large vessel berth moorage including two cruise passenger terminals.
Maritime Facilities include: T91 piers 90 and 91, T46 North; plus vessel berths at P2, P17, 18N, P25, P28,
P34, P69, and other maritime facilities. The two cruise terminals include a single cruise vessel berth facility at
Pier 66, the Bell Street Pier Cruise Terminal, and a two berth facility at Terminal 91, the Smith Cove Cruise
Terminal.
Customers include cruise lines, cruise terminal operator, charter and excursion vessels, tug and barge
companies, large fishing and commercial vessels, ships of state and other government vessels. Industry sectors
served include cruise, marine transportation, staging and transport, stevedoring service providers, the
commercial seafood industry, bunker and distillate fuel distribution, and tug and barge services.
STRATEGY:
2016 Business Strategy will focus on continued outreach to potential maritime business sectors in efforts to
increase utilization levels of Maritime facilities. Staff will continue to seek opportunities to grow our port’s
market share of maritime business activity which aligns with the Century Agenda goals of supporting job
growth in our region. For 2016 overall strategy for Cruise & Maritime Operations will focus on growth
opportunities, increasing revenue and securing long term business commitments. Identifying synergies
between all sectors of the newly reformed Maritime Division
Cruise: For the cruise business, our strategy is to market Seattle as a homeport and a port of call to cruise lines
serving Alaska and the Pacific Northwest. Our goal is to maintain and grow our market share, increase cruise
passenger volumes and annual number of ship calls. We also create value for our customers by making our
cruise terminals more efficient and cost effective; working with the Airport and logistic providers along with
our cruise terminal operator to improve the operations and passenger experience at the cruise terminals and
Airport; and working with the tourism and business community so that we maximize economic impact from
visiting passengers and cruise ships. A priority focus for 2016 will be expansion/ renovation/ redevelopment
opportunities of Port cruise facilities.
Maritime Operations: For docks/commercial moorage facilities, we will work with the terminal operators,
tugboat, fishing industry, stevedoring companies, vessel agents and other dock users to maximize the use of
vessel berthing and dock facilities providing net income to the port. We focus on providing customer value
through building and maintaining relationships with our key customers, and continually strive to better
understand and anticipate their business needs. Retaining our current customers across all maritime sectors
continues to be a key focus. We also invest in strategic capital improvements to maintain and improve
facilities, accommodate current customers’ needs, attract new business, and enhance revenue from our
facilities.
Page A-1
Focus for the coming year will be on retaining customers and growing core business, asset stewardship--
annual maintenance procedures and condition monitoring, advancing capital improvement programs that align
with competing Maritime Division priorities, completing projects underway and expanding our green gateway
strategy. This will include identifying storm water improvements needed at T91 along with seeking energy
efficiencies and reducing operating costs through use of new technology in energy efficient yard lighting and
security equipment.
Maritime Security: The focus of Maritime Security will be to maintain compliance with regulations and
policy, reduce security risks and to enhance business through identifying potential security technologies to
improve the efficiency of our Port and customer operations and to reduce cost-of-investment when possible
through the effective use of any available grants. Maritime Security will continue to provide security services
to the Corporate, Economic Development and Maritime Divisions. Emergency Preparedness: In connection
with the Airport Emergency Management program which covers the entire organization, Maritime will support
Non-Aviation Departments in developing and maintaining their department Continuity of Operations Plans
(COOP), Emergency Response Plans and Preparedness and assist in response to Non-Aviation emergencies.
Updates will be made to the Maritime Emergency Preparedness program, and information sharing and
education will be provided to Non-Aviation staff to better prepare themselves for an emergency situation.
INDUSTRY ASSESSMENTS:
Cruise
Global industry growth expected to continue in 2016. According to recent CLIA report, in the U.S. alone the
cruise industry contributes $44 billion in positive economic benefits, including 363,000 jobs with direct and
indirect employment paying more than$18 billion in wages. Market growth supported with global fleet
expansion, larger ships with new product innovations to meet the high demands of consumers. Alaska
Cruising market remains strong. Cruise lines continue to present some of their best products here in the North
West. 2016 vessel schedule for Seattle brings a larger RCI ship to the collective fleet.
Maritime Operations
Heightened regulatory and environmental standards driving industry change. Requirement for cleaner fuel for
ocean going vessels operating within the Emission Control Area (ECA). Supply of suitable and affordable
marine terminals is growing increasingly scarce in the NW. Ongoing consolidation of the commercial fishing
fleets will require changes in facilities and services to meet demand of larger homeport operations.
BUSINESS ASSESSMENTS:
Cruise
Expecting moderate growth for Seattle in 2016. Larger vessels confirmed. Revenue passenger counts expected
to increase to more than 900,000. Based on continued surveys Seattle cruise passengers level of satisfaction
exceeds industry standards. Passengers surveyed have expressed strong desire to return to Seattle again in the
future. The number of pre and post cruise passenger visits is steadily increasing in the region.
Maritime Operations
Fishing fleet homeport demand is expected to remain stable in 2016. Fishing, tug and barge companies making
significant investment in vessel improvements and system upgrades. Other marine industrial moorage is
expected to remain stable with moderate growth overtime. Energy sector driving change in maritime facilities,
as forward effort continues in oil exploration north Alaska and LNG for marine vessels becomes more
prevalent in our region.
Page A-2
Challenges
 Aggressive schedule of Cruise Line customers to expand facility passenger capacity by 2017.
 Controlling the cost of building, maintaining and operating marine terminals.
 Limited capital capacity for investment in cruise terminal modernization for larger ships and new
technology.
Opportunities
 Increased demand for shorter cruise itineraries.
 Customer expressed desire to bring larger Cruise ships to Homeport out of Seattle
 Ability to set up short term TWIC berths.
 Opportunities for homeport bases supporting seafood, tug and barge fleets, mega yachts and
Commercial vessels
2016 STRATEGIES AND OBJECTIVES

NWMTA/CAPA meeting Maintain engaged Provide POS representation from business group
participation participation through and legal department in all meetings of
discussions with WA and NWMTA and CAPA/NWMTA regarding rates
CA port authorities to and terminal investments
advance common interests
Objective: Triple the value of our outbound cargo to over $50 billion
Increased frozen seafood Grow volume to over Partner with Seafood customers to attract more
cargo volume 50,000 MT cargo through Port Facilities. Ensure port use
fees reflect current market consistent with value.
Perform survey of NW ports fee structures
Grow existing seafood Increase/expand existing Support existing customer base efforts to grow.
value seafood customers Survey current customers at T91regarding what
additional operational requirments users of the
facility would benefit from
Attract new seafood Attract new seafood Recruit new seafood companies to the Port
value customers
Page A-3
Additional dry storage Meet fishing and maritime Complete an analysis to develop a new portable
facilities T91 customer on site dry storage dry storage facility at T91 by year end – size and
needs in support their placement location TBD
operations at T91
Review market demand

Determine feasibility and
for Dry Boat staorage Determine demand through Market analysis
cost and location to develop
dry boat storage
Complete rehabilitation Redevelopment of berths 6 Complete an analysis to make a decision

of Pier 90 structure. and 8 with adjacent uplands. regarding prioritization/funding plan for the
design and permitting.
Consider other use for this area.


Grow our market share in Commitment from Provide POS representation in the CLIA
homeport cruise industry. customers for shorter Executive Partner Program at annual CLIA
itineraries for 2017 and events including the Leadership Forum,
beyond. Congressional Caucus and Cruise 3 Sixty
tourism/ travel trade show. CLIA provides
Commitment from new
forum to influence positive outcomes through
customer for homeport
engaged participation of stakeholders , aligning
vessel for 2017 and beyond
messaging on critical issues to speak through
one voice
Support CSM- Seatrade MIAMI – West coast
port collaboration “Cruise the West Assoc
CTW ” Work with other ports in CTW to
promote West Coast/ Alaska and Hawaii Cruise
Markets at annual Industry Conference and
Trade Show. Cost of booth shared with other
Ports
Work with other PNW ports on joint marketing
efforts to promote shorter cruise itineraries.
Prepare Port of Seattle for Identify operational Work with the airport staff to improve
the changes occurring in improvements to increase passenger/bag efficiencies and logistics between
the cruise Industry – passenger terminal P66, SCCT and STIA
Larger ships deployed to efficiencies
Work with Customs Border Patrol (CBP) to
the West Coast Market
improve passenger processing efficiencies (i.e.
explore onboard clearance) at P66, SCCT and
STIA
Page A-4
Advance conceptual design Work with SPM, AV and consultants to
development, estimate cost, increase/optimize P66 passenger processing
schedule and permitting capacity and utilization
requirements for potential
Secure long-term berthing commitment from
cruise terminal expansion
cruise line for future large ship.
Complete dredge of east Complete work with agencies to permit
cruise berth at Terminal 91 dredging project.
Increase pre and post Increase the awareness of Participate with Visit Seattle, Washington
cruise passenger stays in the travel industry and top Tourism Alliance and local business on
Seattle and the region. selling cruise travel agents familiarization events and cruise line visits.
on Seattle and the region. Coordinate work with Port Tourism effort

DEVELOPMENT
Objective: Increase the proportion of funds spent by the port with qualified small business firms on
Review maintenance and Identify small business Select small business contractors from CPO
small cap work for small contractors business list when need for outside services is
business opportunities necessary
Objective: Increase work force training, job and business opportunities for local communities in
maritime, trade, travel and logistics
Veterans fellowship Hire one Veterans Fellow in Seek opportunites to hire a Veterans Fellow in
program 2016 the Maritime Division

Objective: Collaborate with industry to reduce environmental impact while enhancing our
competitive advantage
Represent the maritime Reach agreement between Facilitate communication with all parties, Port
Division in Memorandum the three signatories of the Commission and staff and the cruise lines and
of Understanding MOU on crafting participate in meetings and conference calls
between the Port of amendments to improve the
Seattle, CLIA-NWC and program
Ecology
Page A-5
STRATEGY: MANAGE OUR FINANCES RESPONSIBLY – OPTIMIZE MARITIME FINANCIAL
PERFORMANCE
Objective: Grow Maritime revenue
Revenue growth Commerical moorage Market available berth space. Seek new use of
increase P69 Berth – Secure lease agreement for P-34
Dolphins
Revenue growth Identify new business Advance marketing efforts for attracting Mega
prospects Yacht business
Revenue growth Identify new business Determine feasibility for passenger water taxi
prospects T91 to down town


PREPs aligned with Port 100% of CMOS annual Ensure all staff Performance Plans incorporate
priorities PREPs include metrics tied at least one metric tied to Port Strategic
to Port priorities— Priorities and Plans
Employee development
Continuous Process One new idea for CPI Review Maritime Operations billing procedures.
Improvement (CPI) evauluation Adopt, Implement new methods
Embrace CPI improvements CMOS aware of emerging new processes, and
adopted by Maritime adopts when appropriate
Division
Objective: Increase organizational and individual ownership for safe and secure work practices and
healthy living
Support Non-Aviation Provide support in Provide information and tools needed for each
Departments with their developing and maintaining department to develop COOP.
Continuity of Operations COOP Information sharing for individuals to be
Plans (COOP) prepared at home and within their own work
environment
Personal Protective 100% compliance/ Safety CMOS staff utilizes appropriate PPE when on
Equipment (PPE) on terminals/construction sites. No Injuries
jobsites
Page A-6
COMMERCIAL AND RECREATIONAL MARINAS 2016 BUSINESS PLAN
MISSION:
To operate recreational marinas, commercial fishing harbors and commercial properties in a way that
distinguishes us from other marinas by: offering a full-range of products and services of value; delivering
extraordinary customer service; using our creativity to provide amenities and events that make us unique;
operating efficiently and cost-effectively; maximizing the assets that we manage for the Port; ensuring
compliance with all legal, financial, and regulatory aspects of ownership; providing a rewarding work
environment for our employees; and promoting a spirit of partnership within the communities that we serve.
Our goals will be accomplished with professionalism, integrity, and respect for the environment in support of
the mission of the Maritime Division and in alignment with the Port’s Century Agenda.
DESCRIPTION:
The Commercial and Recreational Marinas’ Group includes five marinas serving commercial and recreational
vessels as well as tenants of commercial buildings. The two commercial fishing moorage facilities, home to
the North Pacific Fishing Fleet, provide space for more than 600 commercial fishing vessels, commercial and
Tribal work vessels as well as recreational vessels. The three recreational marinas provide facilities for more
than 1,600 recreational, commercial fishing, and commercial pleasure vessels and 13,000+ guest boaters. The
waterside facilities provide floating moorage slips, fixed piers, inside and outside storage, cranes/hoists, fuel
dock/store and other products and amenities. Landside facilities are comprised of 219,000 square feet of
commercial buildings that include 85 offices, industrial and retail leases, which include a shipyard, two
boatyards, a marine transportation operation, retail shops, restaurants, sailing clubs, yacht brokers and more.
Port facilities are:
 Bell Harbor Marina - a recreational marina on the Seattle Central Waterfront
 Fishermen’s Terminal – the Homeport of the North Pacific Fishing Fleet is primarily a commercial
marina with commercial buildings that also accomodates recreational vessels, located at the north end
of Seattle on the Lake Washington Ship Canal
 The Maritime Industrial Center - a commercial marina with commercial buildings to the west of
Fishermen’s Terminal on the Lake Washington Ship Canal
 Harbor Island Marina - a recreational marina at the southwest end of Seattle at Terminal 102
 Shilshole Bay Marina - a recreational marina in the north end of Seattle, west of Ballard, next door to
Golden Gardens Park
Providing extraordinary customer service (GEM-Going the Extra Mile) is our primary focus. Customers
include: office, industrial and retail tenants, commercial and sport fishermen; commercial pleasure and work
boat operators; recreational boaters including mega-yacht owners; Tribal members; and other commercial
businesses including boating charters, sailing clubs, yacht brokers, parasail operator, kayak rental, a fuel dock
operator and more.
There is a strong link between each of the facilities and our neighboring communities of Ballard, Magnolia,
Central Seattle Waterfront and West Seattle.
Page A-7
STRATEGIES:
 Meet or exceed net operating income targets by maintaining market rates and achieving our occupancy
goals. Focus on new revenue streams and expense reduction opportunities.
 Respond to changing market conditions and enhance the value of each asset by continuing to selectively
evaluate the various assets within our portfolio to identify and pursue new opportunities, such as strategic
redevelopment plans, for existing assets.
 Maintain and manage assets to meet market demands, while focusing on earning a greater return on the
publics’ investments. Analyze future capital improvement alternatives considering total cost of ownership
and impact to the bottom line.
 Focus on effective expense controls while meeting the needs of our tenants and customers.
 Be a leader in innovation and creativity within the Northwest recreational marina industry by continually
looking at ways to add value to our customer’s experience and to the marina industry.
 Support the Century Agenda and its maritime jobs objective by growing boating through
partnerships with organizations involved in the engagement of youth in maritime activities/events
and boating programs.
 Promote environmental stewardship by operating clean and green marinas/harbors and further educating
customers and the public.
 Maintain safe and secure facilities via safety programs and employee vigilance; thereby minimizing the
potential economic and physical loss to the Port.
 Develop and mentor our employees to enhance their skills and to better serve our customers.
INDUSTRY ASSESSMENT:
The Commercial and Recreational Marinas Group encompasses three different specialties:
Commercial real estate management; fishing and commercial vessel moorage and services
management; and recreational vessel moorage and services management.
Commercial Properties – Ship Canal/Ballard Submarket

(Reference: Kidder Mathews 4th Q. 2014, Colliers 4th Q 2014, and CBRE 4st Q 2014)
The commercial buildings at Fishermen’s Terminal, the Maritime Industrial Center and Shilshole Bay Marina
are located within the Ship Canal/Ballard submarket and are generally considered to be Class B and C
properties due to their age and condition.
The effects of the recession have subsided and according to local market reports we will experience steady
improvements throughout 2016. Class B and C vacancy has continued to decrease in the Ship Canal Market
and was at 4.4% in the 4th Quarter of 2014. Rates in lower Queen Anne/Lake Union dropped from 8.9% to
below 7.0%. As Seattle’s Central Business District recovers and the vacancies there decrease, the
attractiveness and popularity of Fremont, Magnolia, Ballard and Wallingford are factors that have allowed
many buildings in the area to retain tenants and sustain more demand than some of the other office
submarkets. There are plans for a 500,000 sf office campus to be built along the Lake Washington Ship Canal
in Ballard. Tech companies like Google and Tableau Software have been filling up buildings in nearby
Fremont and the developer is banking on the property’s waterfront location to draw tenants. Joining in this
rush of tech companies moving to Seattle is Expedia, who recently announced its plans to move their
headquarters from Bellevue to the 42 acre Amgen campus in Interbay. According to Colliers there is little to
no new office space available in Ballard. Construction of new development won’t start until some of the space
is pre-leased.
Page A-8
Class B and C Office
The vacancy rate for Class B and C office space in the Ship Canal submarket is 4.5% compared to 6.5 %
vacancy rate in the Queen Anne/Magnolia submarket and a 10.0% overall vacancy rate for the Puget Sound
region. Market rent rates for Class B office spaces are slightly higher than those in 2014 and range from
$16.50 - $19.50/sf /NNN for nicer well-kept Class B office space. Brokers indicated that a landlord would be
fortunate to get $16.50/sf/NNN today for Class B space with aging improvements. Some landlords are starting
to pull back on concession packages but many in this sub-market are still offering concessions that include a
combination of abated rent and up to $40.00/SF for tenant improvements, particularly in buildings with lower
occupancy. The Maritime Industry has a large presence is the Ship Canal/Ballard submarket and has not been
lured away due to the need to be in close proximity to the commercial fishing fleets located there. According
to most reports and to local brokers, rent and occupancy rates should continue to increase as consistent leasing
and positive absorption ease pressure on landlords.
Industrial
The Puget Sound Industrial market has rebounded in the past two years and has been showing steady
absorption which is expected to continue through 2016. Demand for industrial users remains high, especially
for larger warehouse space in the 50,000 – 100,000 sf range. Rental rates rose during 2014 and are expected to
hold steady in 2015 and 2016. For the third time in four years, the Puget Sound industrial total vacancy rate is
well below 7.0%. Total vacancy in the Kent Valley is 5.8% and in the Seattle/Close-In market the total
vacancy rate is 5.7%.
The available quarterly reporting on industrial property focuses on the Kent Valley, where average rates for
warehouse/distribution are $.40-$.50/sf/mo for spaces under 10,000 sf. In the Seattle/Close-In market, average
rates are $.45-$1.00/sf/mo for medium to high grade buildings. These rates are both expected to increase
slightly in 2016. Average warehouse rates in the Ship Canal area are around $.55/sf/mo. Land in this
submarket is ranging from $.15-.20/sf/mo, which is the same range as land in the Seattle/Close-In submarket.
In general the Ship Canal submarket, Ballard in particular, is an extremely tight market and warehouse space
remains scarce. The warehouse vacancy rate reported in the Interbay submarket was 2.2%. A lot of buildings
are owned and occupied by businesses that have been there for decades. .
Recreational Boating
Nationwide, marinas are experiencing steady growth in the recreational boating industry. For 2014 nationwide:
 82% of marinas reported that they maintained their previous occupancy or improved it over the
previous year and 52% of marinas reported higher gross profits in 2014. However, a majority of the
facilities reported that their moorage rates remained at the 2013 level.
 Facilities saw the largest increased revenues with in-water rentals (kayaks, paddle boards, etc.), boat
rentals, restaurants, leased slips, fuel, and boat sales. For Washington State, the 4th Quarter of 2014
out sold the 4th quarter in 2013 by 98 boats. This was a 75% increase for new boat sales. The used
boat market still composes the majority of boat sales and they outperformed 2013 by 492 boats.
The industry continues to be challenged by trending barriers such as the affordability of boats and boating,
attracting younger generations and minorities, and the emerging regulatory restrictions through taxes
and reduced access to water. However, the 2015 Seattle Boat Show registered a drop in average age of
attendees from 51 to 48 years old, which was the first drop of this metric in sixteen years. In addition, boaters’
expectations are driving up marina operating costs by demanding moorage facilities to be more innovative in
their approach toward customization, automation and personalization. Amenities, finishes, and architectural
details once considered high-end and reserved for the most luxurious marinas are making their way into the
mainstream.
The long-term financial forecast for the commercial fishing industry is stable mainly due to sustainable
fisheries in the Bering Sea and Gulf of Alaska. The Alaska fisheries are recognized as the most successfully
managed fisheries in the world, ensuring the success of the industry in the future.
Page A-9
Fishing and commercial boat operations continue to remain strong in the Puget Sound region. Revitalization
of the large boat fleet is a good indicator of the health of the industry and commercial fishing companies
continue to plan for, and are starting to build, new boats to replace aging fishing vessels.
In addition to new vessel construction, the Puget Sound region benefits from dollars spent on maintenance and
improvements to commercial fishing boats in the off season. According to a 2012 economic impact study by
the Workforce Development Council of Seattle and King County, there were 57,700 workers and $30 billion
impact by the maritime industry to our region.
Although Alaska ports are working to build better infrastructure to support the small boat fleets, Puget Sound
continues to be very attractive for off season moorage for all sizes of commerical boats due to better weather
conditions conducive to working on boats as well as an established parts and service network.
BUSINESS ASSESSMENT:
Fishermen’s Terminal and The Maritime Industrial Center - Waterside

Commercial fishing vessel moorage demand remains steady with annual occupancy over 80%, even with the
majority of our customers leaving to work in Alaska for various parts of the year. Small commercial fishing
boats (<40’) is the market that is most at risk due to the expense of operating a boat, owners retiring and boats
relocating. We are able to compensate for this loss of business to some degree by providing monthly moorage
for smaller recreational vessels which do not require year round moorage.
Daily moorage demand for use of the loading docks on the West Wall and the Northwest Dock continue to
exceed supply at certain times of the year. Because many of our customers work in the same fisheries, they all
have the same deadlines and plans and accommodating all of them during key times of the year is challenging.
Demand for gear storage, both inside and outside, continues to be strong and exceeds supply. Currently there
are no ground floor storage lockers (net sheds) available and all outside fenced storage gear does not fit into
the fenced storage areas resulting in net pallets loaded with gear being placed throughout the terminal.
Dock and moorage assets at Fishermen’s Terminal are all fairly new with the exception of the Northwest
Dock, which is the oldest dock and now approaching thirty years old. Available shore power systems for the
various sizes of boats continues to set us apart from our competition. Over the next ten years, the capital plan
for the entire Fishermen’s Terminal property calls for as much as $90 million in projects such as the NW Dock
improvements, Docks 3 & 4 rehab, corrosion protection to seawalls, Net Shed buildings roof replacements,
and the Maritime Industrial Center west and central pier resurfacing. These projects are subject to the overall
Port of Seattle capital plan funding priorities.
The financial outlook for the terminal is projected to continue to be stable. The opportunity for increasing
revenues will come from increasing the number of recreational vessels, as the recapitalization of the distant
water large vessel fishing fleet will, for the most part, replace old vessels with new ones, not necessarily
adding vessels to their respective fleets. However, the recapitalization of the commercial fleet represents a
stable and well managed industry. Moorage rates at the terminal for fishing and commercial vessels are at
market when compared to other Puget Sound public ports. Recreational vessel rates at the terminal are at
market as compared to local marinas. We continue to look at Fishermen’s Terminal in an enterprenial fashion
for revenue generating opportunities.
Fishermen’s Terminal and The Maritime Industrial Center - Landside
The commercial property occupancy rate at Fishermen’s Terminal is 97% and at the Maritime Industrial
Center is also 97%. The office industry widely considers the average long term occupancy rate for office
space to be 95%. The main focus throughout 2016 will be to remain creative in retaining existing tenants and
maintaining property values. Continuous efforts will be made in offering excellent customer service,
increasing rental rates levels on renewals and accommodating space reductions and expansions while
improving space for quality tenants.
Page A-10
Starting negotiations earlier to renew leases with existing tenants and providing rent abatement concessions in
exchange for longer lease-term commitments will keep the rents at market rate and be a pro-active move in
assuring tenants are not lured away by the new development of office space in nearby Ballard.
There is a small amount of vacant office space that we will continue to market using the various MLS sites for
commercial office space. We will also be working closely with the Commercial and Recreational Marinas
Group to secure maritime related tenants that can use both the landside and waterside assets at the two
facilities.
Shilshole Bay Marina - Waterside
Monthly moorage occupancy remains strong at over 95% at Shilshole Bay Marina which handles the majority
of the port’s monthly recreational moorage. The continued high level of success is attributed to the marina’s
location, state of the art docks designed with good maneuverability and wide navigation channels, a strong and
active liveaboard community, and the customer focused experience the staff provides. Customer needs have
led to new revenue generating ideas which require more study such as: Gear storage rental, off-season RV
use, additional non-port events, expanding the liveaboard cap and adding food trucks. There are plans in place
to analyze these ideas as well as to explore the following: Paid parking, providing Wi-Fi service to our
customer which is now a common amenity in the industry; and soliciting development opportunities for an on-
site restaurant (ground lease) to attract guest moorage customers and the public. The marina will be facing a
number of major improvements over the next five years such as: replacement of the 1960’s era
restroom/shower/laundry buildings that do not meet the needs of many of our customers; repairs to utilities;
repairs to the mile long parking lot/pavement; repair of the fuel dock building (built in 1962); and
rehabilitation to two docks that were not addressed in the 2006-2008 Dock Replacement Project.
Shilshole Bay Marina - Landside
The commercial property occupancy rate at Shilshole Bay Marina is 100%. The main focus throughout 2016
will be to retain existing tenants and maintain property values. Continuous efforts will be made in offering
excellent customer service, holding rental rates at current levels on renewals (if at market) and accommodating
space reductions and expansions while improving space for quality tenants.
Bell Harbor Marina relies on short-term guest moorage revenues and remains the only marina with easy
access to the downtown corridor primarily. In the off season, a portion of guest moorage is changed over to
monthly moorage in order to increase revenues. As the local economy is showing signs of recovery, there is
an optimistic belief that Bell Harbor has the highest potential for future growth in terms of occupancy and
revenue. New floatation has recently been added to the docks that will help extend the life of these assets. In
addition, the marina office has been remodeled to better help meet the needs of our customers. BHM is facing
capital improvement in the next few years to extend the life of the under pier pilings. The wavebreak panels
will have to be addressed in the future: however, the panels recently underwent an assessment that indicated
they have greater longevity than initially thought. BHM will eventually be affected by the waterfront
construction which could have an impact on its revenues in the near future.
Harbor Island Marina is an aging facility. Plans are in place to begin repairs of E-dock (float used by
commercial tugs) in the fall of 2015. This dock is most in need of rehabilitation... Future dock repair projects
are planned to follow every two years. Harbor Island Marina has a lower price point that is attractive to many
cost-conscious boaters. This has led to the marina achieving a 94% occupancy rate, its highest rate in the past
two years. We expect this improving occupancy trend to continue for at least another two years as we
continue to make repairs. A challenge for marina pricing is its proximity to two concrete plants which produce
dust on marina vessels.
Page A-11
KEY CHALLENGES AND OPPORTUNITIES:
Commercial Real Estate:
Challenges
 Compliance with legal, financial and regulatory aspects of public entity ownership of real property can
result in having a less competitive edge than the private sector in the commercial real estate market
(contracting procedures, security deposit requirements, and limited flexibility in negotiations). This is
likely to be reflected in achievable lease rates at the lower end of the market range and/or lengthier
vacancies through missed opportunities.
 Having experienced high vacancy rates over an extended period, landlords of commercial real estate
will continue to aggressively pursue tenants looking for commercial space. Well-positioned and
maintained properties that offer attractive amenity packages more readily benefit from improving
market conditions.
 Improving operating efficiencies in properties with aging infrastructure and implementing energy
conservation improvements will involve forward planning and capital investment.
 Increasing regulatory requirements increase maintenance costs.
Opportunities
 The current real estate market appears to be trending toward continuing recovery which suggests more
opportunities for improving future revenue.
 Trends in lowering total operating expenses through maximizing building efficiency supports
investments made in energy conservation initiatives.
 Upland redevelopment in connection with the Fishermen’s Terminal Strategic Plan.
Recreational Boating:
Challenges
 Keeping facilities available, customers satisfied and revenues coming in, during upcoming capital
improvement projects including Seattle waterfront construction projects.
 Maintaining assets responsibly within the Port system while still controlling costs.
 Designing and rebuilding the Shilshole multi-use service buildings (restrooms/showers/laundry) in a
way that will meet the needs of our customers and boost our current revenue streams.
 Receiving timely services from our Port Partners.
 To be understood as a business that is built on leisure, hospitality, and fun.
 To provide all of the services that our 1600 + customers need and the work product that our leadership
needs at three marinas with 17 staff members who cover a 7 days/week operation schedule.
 To find and implement new revenue streams without making the customers feel like they are being
nickled and dimed or being taken advantaged of.
Opportunities
 Adding value to Shilshole Bay Marina and new revenues where possible through projects and grants
such as: Seaview Boatyard expansion, customer service buildings (restrooms/showers/laundry),
restaurant pad (ground lease), outdoor fitness trail, guest moorage kiosk, storage for boating
equipment, paid parking and bringing in more boatshows and 3rd party events.
Page A-12
 Exploring new lines of business that were previously not within the Port’s strategy such as: dry stack
moorage, creating a new Recreational or Commercial Marina at Harbor Island Marina, etc.
 Leveraging partnerships to create opportunities with CorinthianYacht Club, The Adventuress, Seattle
Yacht Club, Northwest Marine Trade Association, to name a few.
 Utilizing new technologies to create efficiencies, such as an updated marina software system and
handheld technology. Provide reliable connectivity so that future income streams based on technology
would be available to us.
 Determining what additional staff services that we could charge for while not causing a labor issue.
An example would be pressure washing boats.
Fishing and Commercial:
Challenges:
 Potential for further slow decline of the small boat fishing fleet (<40’).
 The price of fuel to vessel operators traveling to and from Alaska, likely at a new normal level.
 Poor weather conditions in June, July and August discouraging small recreational boat owners from
taking moorage.
 Capturing the new business from the revitalized large commercial boat fleet is essential to remain the
homeport of the North Pacific Fishing Fleet However, with the revitalized fleet comes longer stays on
the fishing grounds, as commercial fishing vessels are staying out of port longer to maximize
economic returns by diversifying their use, i.e. from fishing to tendering.
Opportunities:
 Retain business from commercial fishing customers who are recapitalizing their fleets.
 Continue to grow the recreational vessel fleet.
 Use visibility of the fishing and maritime industry economic impact results to promote legislation that
would incentivise continued growth within the industry.

PERFORMANCE
Key Objective: Meet 2016 Financial Targets
Performance Measure Performance Target Actions
Commercial and NOI before depreciation  Review performance monthly and adjust
Recreational Marinas of ($TBD) spending to meet the target.
Group Total  Execute the Marketing Plan and the
Operations Plan.
 Work collaboratively with Marine
Maintenance to identify and implement
efficiencies throughout the year.
 Analyze additional revenue streams and
implement where feasible.
Fishermen’s Terminal NOI before depreciation  Same actions as above.
of ($TBD)
Page A-13
Maritime Industrial Center NOI before depreciation  Same actions as above.
of $TBDK
Shilshole Bay Marina NOI before depreciation  Same actions as above.
of ($TBD)
Other Marinas NOI before depreciation  Same actions as above.
of ($TBD)
Key Objective: Achieve Target Occupancy While Maintaining Market Rates
Achieve moorage and BHM Moorage: 74%  Develop and maintain an ongoing leasing
commercial occupancy FT Commercial: 95% and marketing strategy for assets that
targets by year-end. FT Moorage: 80% responds to current commercial real estate
HIM Moorage: 95% market conditions that include
recommendations for: marketing; asking
MIC Commercial: 95%
rates based on market conditions;
MIC Moorage: 70% concessions (i.e. improvement allowances
SBM Commercial: 95% and rent abatements); level of maintenance;
SBM Moorage: 92% capital improvements & utilization of
outside brokers
 All staff continue to provide an
extraordinary customer service experience
(GEM-Going the Extra Mile) through a
welcoming attitude, clean facilities and
docks, continuance of the GEM Program
and events.
 Operations and Marketing staff together
review monthly the occupancy, demand and
trends. Adjust action plans as needed.
Increase daily and monthly Increase daily and  Continue to implement where possible
recreational moorage at monthly recreational extending summer moorage availability at
Fishermen’s Terminal moorage over 2015 the beginning and end of the summer.
Actual  Continue recreational customer outreach for
moorage availability and the quality of our
product via boat shows, NMTA, meeting
with customers and marine vendor groups.
Increase guest moorage at Increase daily and Implement Marketing strategies/plans

BHM and SBM. monthly recreational specifically targeting guest moorage at SBM &
moorage over 2015 BHM through targeted marketing, event
Actual advertising, creative partenerships and outreach.
Key Objective: Identify and implement new revenue streams.
Finding and fully vetting Have one new revenue  Assemble list of revenue ideas and priotitize
potential new revenue stream ready with plan to by potential impact to revenue. Q1
streams. implement by the start of  Determine total costs and revenues for 3 of
Q1 2017.
the top ideas. Give Finance the data to do a
long term analysis on ideas.Q3
Page A-14
 Develop plan for the item with the greatest
positive return.Q4
 Begin revenue stream implementation Q1
2017. Q3 2017 develop plan for 2nd
revenue stream.
Objective: Maintain existing assets and invest in new developments to sustain and enhance Maritime
Division vitality
Implement capital projects  Complete design and  Gain Commission funding approval for all
permitting for SBM projects meeting the threshold. Work with
customer service Project Management to assist with
center buildings completion of improvements per Plans.
(restroom, showers,  Continue Customer and Community
laundry, storage) Q3. Communications and Coordination Plan
 Construction bids for working with Public Affairs.
Customer Service
Bldg. and start of
construction by Q3.
*Design for A-dock will only commence after
 Complete the remodel approval is granted by leadership. Any required
of SBM Fuel Float Q1. construction will not be started until after
 Begin design of SBM restroom project is completed, May 2017.
lower “A” Dock
improvements Q4.
 Complete design of
BHM Pile Wraps Q4
 Complete the
refurbishment of HIM
Commercial E-Dock.
Q1.
 Implement planning
and design for FT
Paving Project Q3
DEVELOPMENT
Objective: Foster New Business Opportunities for Local Businesses
Utilize small businesses 15% of direct expense. When feasible, utilize qualified small
businesses.
Objective: Increase Work Force Training for Local Communities in Trade, Travel and Logistics
Develop a partnership with Q4 Work with Marine-related organizations such
other maritime groups to as,Corinthian Yacht Club, Seattle Yacht Club,
help expand youth maritime NW Marine Trade Association and/or the
programs Adventuress, etc, to develop programs, events
or relationships that will help expose youth to
Page A-15
boating and the maritime industry.
Hire interns Hire by Q2 Hire an intern at FT and create a maritime
learning experience.
STRATEGY: IMPLEMENT CENTURY AGENDA STRATEGIES – BE THE GREENEST, AND
Objective: Integrate Business Friendly Environmental Objectives into our Organization
Provide more vehicle Determine method of  SBM: Work with Environmental to analyze
charging stations that will implementation. Q4 and determine the means and methods of
support the growth of installing Electric Vehicle Charging
electric car utilization Stations. Q3- based on completed design
thereby improving the air and placement of restrooms, locate areas
quality. that have easy utility access. Q4 - Analyze
available options: Port Installed or Private
vendor.
 2017, Q1 – Move forward with design and
layout or begin RFP for Vendor solution.Q4
– implement design plan or sign contract.
 2018, Q1 – project completed. .
Utilize energy and resource Designer fully analyzes Work with Project Manager and designers to
efficiencies in the design and discusses all investigate green options for the Customer
and construction of the opportunities for energy Service Facility. Vet each relevant option
SBM Customer Service efficiency, environmental through the help of the Finance Department.
Facilities. impact and resources
used.
Objective: Conduct Business Activities in Environmentally Appropriate Ways
Maintain Clean Marina Certification maintained  FT: Maintain regulatory requirements to
Washington/EnviroStar and/or achieved Q4 achieve EnviroStar recertification by year-
Certifications end
 SBM/BHM/HIM: Maintain standards to
satisfy regulatory certification requirements
(certified every three years; 2014 last
certification)
Enforce Marina Best Zero regulatory  Marina staff continually educate customers
Management Practices violations. about the BMP’s & agency regulations
(BMP’s) & agency including enforcement.
regulations.  Review FT & Recreational BMP’s annually
BMP Update Q4
with Environmental and update as needed
Page A-16
Objective: Increase Organizational and Individual Ownership for Safe and Secure Work Practices
and Healthy Living
Attain perfect score on the 100% on YE 2015 Safety 100% of employees complete all requirements
Health & Safety Plan audit Plan audit (published Q1) and training as specified in the facility Safety
Plans
Objective: Align Leadership, People and Systems with Strategic Priorities and Plans
PREP Plans include clear  Complete meetings  Managers meet with employees to ensure
accountabilities, measures, with 100% of understanding of accountabilities, measures
participation in Port employees by end of including linkages of their work to the 2016
diversity activity and a January strategies, goals, and actions.
Personal Development Plan  Staff members will attend or participate in
 100% of PREP plans one diversity activity per year.
are completed on time  Each employee will include a personal
development plan in PREP; completion by
year by year-end.
 100% of Staff
 Employees and Managers complete PREPS
on time.
Objective: Strengthen a High Integrity, Continuous Improvement Culture
Implement an industry Q4  Implement and complete the Work Plan
generated, 3rd party marina including software installation, training of
management system staff, working with ICT.
Educate staff members To be scheduled by  Require staff to attend a LEAN class by end
about Lean Maritime Division of Q4 (may need to be phased)
Managing Director
Implement work process  Q1 process review &  SBM: Review operation processes and
improvements utilizing the prioritization. prioritize by Q1.
Lean process  Implement one new  Q4 – Finalize agreed upon procedures and
process improvement associated documents.
by year-end
Page A-17
MARITIME ENVIRONMENTAL & PLANNING 2016 BUSINESS PLAN
MISSION:
The mission of the Maritime Environmental and Planning department is to be the global leader among ports in
demonstrating stewardship and reduction of the environmental impact of our operations, while enhancing our
competitive advantage and preparing for the future of a growing maritime business.
DESCRIPTION:
Maritime Environmental and Planning is comprised of teams of professionals working in Remediation, Air
Quality, Permitting and Compliance and Facility and Land Use planning. We support the Maritime and
Economic Development Divisions as well as the Seaport Alliance and seek to demonstrate environmental
stewardship and value to the business that we support and to the surrounding community.
STRATEGY:
Long Term Strategic Planning: To prepare for the future of a growing Maritime Business
Asset and Portfolio Management: Pursue better ways to address and implement environmental regulations
Operations: To improve income from operations while providing asset and environmental stewardship
Finance and Information Systems: To use information systems and financial analysis to make prudent
decisions consistent with our guiding principles.
Challenge: Washington State has increasingly stringent regulations, particularly in the area of stormwater,
construction and sediment clean up, and these can add substantial costs and impediments to business and
operations.
Opportunity: Increasingly stringent regulations are creating a market for mitigation
Challenge: Funding is increasingly difficult to obtain for grant funded projects and funds available from
business revenues are also increasingly constrained. However, proposed changes to MTCA grant rules may
open up funding opportunities
Challenge: Cleanup project and permitting schedules controlled by regulatory agencies and may move slowly
Challenge: Department of Ecology direction increasing the number of sites under cleanup agreed orders is
challenging
Challenge: City policies for densification can make maintaining industrial uses challenging
Opportunities to further apply CPI principles to permitting
Increasing controls on Green House Gases could be both a challenge and an opportunity
Opportunity: Creation of a stormwater utility creates revenue to maintain and repair stormwater infrastructure.
Page A-18

Objective: Grow Seaport annual container volume to more than 3.5M TEU’s (Big Ship Ready)

Co-manage Harbor-wide Work with ACE towards Contribute information and coordinate as
(East and West 2017 Feasibility needed by USACE
Waterways): USACE/ completion. 2020 – obtain Draft Feasibility Study which will identify the
Seattle Harbor project authorization and tentative deepening plan in 2016
Deepening Study initiate planning and design
phase.
Complete environmental Meet defined permit Manage permitting process to meet Feb 2016
review and prepare, schedule deadline for T-5
submit and acquire
permits for Terminal 5
Develop Fishermen’s Return to Commission by Obtain Consultant, perform outreach, and

Terminal Strategic Plan end of Q4 with design develop concept alternatives
and Obtain Commission concepts
approval


Complete environmental Meet defined permit Manage permitting process to meet project goals
review and prepare, schedule
submit and acquire
permits for Alaska Way
Street widening.

Objective: Meet all increased energy needs through conservation and renewable sources
Performance Measures Performance Target 2016 Actions

Reduce electrical energy No increase in electrical  Install outdoor lighting upgrades at
needs through energy use from 2011 Fishermen's Terminal and Jack Block Park in
conservation with baseline by 2020 2016
positive financial metrics  Perform energy audit at 1other Maritime
facility per energy performance plan for
Page A-19
inclusion in 2017 CIP budget
Increase use of renewable Include cost effective  Identify 1 cost-effective renewable energy
energy renewable energy project is project by Q4
2017 CIP budget
Objective: Meet or exceed agency requirements for storm water leaving facilities owned or operated
by the port
Meet conditions of Port No non-compliance 1. Prepare Annual report to Ecology to

Phase I municipal conditions demonstrate 2015 compliance. Track 2016
NPDES permit. compliance for 2017 report.
Implement and manage Assess and survey 1. Collect stormwater fees for Port utility
Port Stormwater Utility condition of all stormwater accurately, correctly, and verifiably
to deliver efficient and conveyance by 2018 and beginning on January 1, 2016
effective stormwater complete maintenance of 2. Extend utility billing/lease boundary
services. 30% of stormwater system database system to all sites by end of 2016.
by 2020
3. Assess 40% of stormwater infrastructure by
Q4
4. Identify and Plan for rehabilitation of
stormwater system for 200 acres for 2017
Objective: Reduce air pollutants and carbon emissions
Meet Northwest Ports Admin-1: Port Admin-1: Implement and update e fuel
Clean Air Strategy goals Administration Fuel efficiency (including anti-idling and other
Efficiency plan (including operational measures) plan for Port fleet by Q4
anti-idling and other
operational measures) for
Port vehicle fleet
maintained
Reduce carbon emissions Conduct 2015 The Climate Complete TCR inventory and submit to TCR
from port operations Registry (TCR) inventory
by Q3 2015
Downward trend in total Analyze results and trends in GHG emissions
Green House Gases (GHG) Update energy performance plan to ensure
emissions reported to The continued downward trend in GHG emissions
Climate Registry
Objective: Anchor the Puget Sound urban-industrial land use to prevent sprawl in less developed
areas
Industrial-land use Replace ‘IC’ zoning with a Engage in in City public process associated with
regulations in City’s new industrial zone concept land use studies and processes by
Comprehensive Plan that better incentivizes
Page A-20
update and in City land industrial development and  advocating with City staff,
use code support a maritime-related  writing comment letters as opportunities
growing maritime development – Target: arise,
business 2016
 providing public testimony at City Council
City’s Comprehensive Plan meetings and
Update process retains and
/or improves preservation  collaborating with a wide range of
of Industrial land use stakeholders aligned with industrial
policies and protects freight preservation and coordinate mutual actions as
corridors. Target: annually appropriate.
City’s arena triggered land
use studies result in no
residential or lodging uses
in the stadium overlay
district and that these
studies result in enhanced
industrial friendly land use
regulations in the
Duwamish MIC. Target:
2016 – 2018.
Objective: Restore, create and enhance 40 additional acres of habitat in the Green/Duwamish
watershed and Elliot Bay
Restore, create or Create 13 acres of new (assumes Trustee negotiations completed 2015)
enhance 40 additional habitat at T117 by 2017 Bid and award T117 project by Q1
acres of habitat in the
Start construction T117 project by Q3
Gteen/Duwamish
watershed and Elliott Bay
by 2035
Generate revenue from Develop a wetland habitat Prospectus approved by Interagency review team
habitat sites. Develop mitigation bank and – Q1
plan to develop habitat evaluate other opportunities Instrument approved – Q3
restoration into a line of for revenue generation
Investigate potential of using habitat sites for
business.
city of Seattle ILF program mitigation
Page A-21
Objective: Pursue Better ways to address and implement environmental regulations
Implement CERCLA and Lower Duwamish 1. Activated Carbon study construction in

MTCA projects as Waterway 2016. Monitor results in 2017-2019
efficiently and effectively 2. Complete Lower 2. Submit draft report by Q2
as possible Duwamish Agreed
Order work by end of
2019
3. T115N Remedial
Investigation and
Feasibility Study.
Submittal of draft
Feasibility Study in
2016.
East Waterway 1. Draft final report resubmitted to EPA by
1. East Waterway end of Q2.
Feasibility Study finalized
in 2016. EPA signs ROD 2. Design and implement the remedial action at
and design phase initiated T30 cleanup site by Q4 2017
by 2020.
2. Design and implement
the remedial action at T30
cleanup site by Q4 2017
Facilitate compliance by Complete 30 inspections Conduct inspections in compliance with Phase 1

tenants through ECAP municipal permits
program

PERFORMANCE
Objective: Reduce environmental liability through cost recovery

Provide cost recovery Maximize cost recovery for Research, track costs, develop cost estimates
support as needed to environmental cleanups by and provide backup documents for cost sharing
other groups working with the legal and activities with other PRPs and to maximize
financial teams in all recovery from insurance
environmental related
actions as needed in 2015
Provide support to legal for Provide technical and strategy support as needed
the lower Duwamish to support justification of Port smallest
cleanup allocation allocation possible
Continue to apply for Provide 10 year forecasts, cost tracking,
remedial action grants reporting and grant proposals.
Page A-22

Continue CPI progress Complete additional CPI Pursue shoreline stabilization programatic
process permit or other process.
Page A-23
MARINE MAINTENANCE 2016 BUSINESS PLAN
MISSION:
The mission of the Marine Maintenance Department is to maintain, preserve, upgrade, improve and enhance,
as directed, the assets owned by the Maritime and Economic Development Divisions. We conduct our
activities in a manner that fosters competitive business practices, customer service and benefit to the public
and local businesses, as well as environmental responsibility and conservation.
We serve in support of the Century Agenda and tie our departmental goals to that plan and to the mission and
goals of the Maritime and Economic Development Divisions.
STRATEGY:
Our business strategy is to fulfill the maintenance and property stewardship needs of our partners and
customers while acting as stewards of the assets in the public trust.
 We conduct Preventive Maintenance and Corrective Maintenance to properly safeguard Port assets
 We engage in expense and capital improvements to support partner departments’ business strategies
 We fully support the Port’s business, community and environmental strategies with programs focused
on Economics, Equity - Social Responsibility, Environment, Workforce Development and Employee
Engagement.
DESCRIPTION:
Maintenance disciplines include automotive, carpentry, marine carpentry, electrical, general labor, painting,
plumbing, sprinkler-fitting (fire protection), sheetmetal, welding, truck driving, sign writing, HVAC
maintenance and elevator/escalator maintenance. Maintenance also provides services such as storm water
pollution prevention, custodial labor, landscape labor, regulatory compliance and regulated materials
management which fall into the property stewardship area. Most maintenance activities required by Port assets
are available through the Marine Maintenance Shop, as are public works including small capital construction
services and environmental and safety compliance support activities.
Maintenance services are provided in many different ways to local industries. Contract, ad hoc, emergency
response and fixed crew maintenance are all evident locally. There is no directly comparable market for the
breadth of services Marine Maintenance provides.
Marine Maintenance has an assignment that is different from other local government entities. It is also
different from that of Aviation Maintenance. The ages and types of properties are unique.
In a recent study by TokuSaku Consulting, data was collected and comparisons made against established
benchmarks in clearly identifiable areas of maintenance.
Marine Maintenance compared favorably with a broad range of private and public maintenance organizations
in cost of maintenance per rentable square foot.
Locally, in a cost per catch basin comparison to the University of Washington, Marine Maintenance performed
at only two thirds the cost at UW. Similar results were noted in the comparison of fleet maintenance costs
between Marine Maintenance and UW. (Full study submitted to Commission and available upon request.)
Page A-24
• Challenge - Changes in maintenance demands from Maritime and Economic Development have required
reconfiguration of Marine Maintenance service delivery
• Challenge - Increasing regulatory compliance requirements increase maintenance costs for business units
• Opportunity – Work with Storm Water Utility to structure appropriate relationship between department
and utility
• Opportunity – Examine relocation of permanent MarineMaintenance Shop, which could offer
opportunities to review service delivery model and cultivate new efficiencies, while creating interesting
options for Economic Development - Real Estate related to the current Shop properties.

PERFORMANCE
Objective: Meet 2016 Financial Targets - Conduct Marine Maintenance Activities Efficiently and
Cost-Effectively
Meet Authorized Budget +/- 2% Monthly review and adjustment in spending to
meet target
Reduce trip costs Fifty (50) users processing Acquire units
work remotely Measure remote usage and trips saved
Evaluate MM Shop Full analysis, with Analyze needs, location, cost and benefits of
location recommendations new location v. current
STRATEGY: IMPLEMENT CENTURY AGENDA STRATEGIES – PROMOTE SMALL BUSINESS
GROWTH AND WORKFORCE DEVELOPMENT
Objective: Foster New Business Opportunities for Local Businesses
Utilize small businesses 15% of operating and Track purchasing and contracting activities in
capital expenditures conjunction with OSR goals
Objective: Increase Work Force Training for Local Communities in Trade, Travel, and Logistics
Increase work force Five Apprentices and Continue outreach to schools and support
training, job and business Twelve Interns per year organizations - Utilize Apprenticeships and
opportunities for local Internships
communities in trade, Work with OSR and Aviation to share
travel and logistics programs such as Career Workplace Exploration
ind Skilled Trades (CWEST)
Page A-25
Objective: Strengthen a High Performance, High Integrity, Continuous Improvement Culture
Performance Measure Performance Target Action
Identify work process Identify one new tool to Identify new work or technology tools to
improvements. improve efficiency. improve effectiveness (eg workflow,Akwire,
etc)
Participate in LEAN programs
% Personal development 100% of staff  Each non-represented employee will
plan in PREP includes a personal development plan in
PREP
Staff and craft personnel Six (6) people actively  Opportunities documented and reported
involved in development engaged in development
opportunities.
Page A-26
MARITIME FINANCE 2016 BUSINESS PLAN
MISSION:
To be a leading edge provider of quality financial management services and strategic support to the Port
Commission, Executive, and Maritime and Economic Development Divisions and to play a fiduciary role in
ensuring the most efficient and effective use of Port resources.
To be viewed by our customers as strategic business partners who provide exceptional, value-added services
that enable them to achieve their mission and goals. We assume personal responsibility for understanding our
customers' needs and delivering services that consistently exceed their expectations.
DESCRIPTION:
The Maritime Finance group provides financial consulting services and expertise to the Maritime and
Economic Development Divisions of the Port of Seattle and to the Northwest Seaport Alliance.
STRATEGY:
Provide the Commission, Executive, Maritime and Economic Development and Seaport Alliance leaders with
the tools to make informed business and strategic decisions related to current and future financial performance
of the two divisions, the Port of Seattle overall and to the Seaport Alliance.
Ensure that the Maritime and Economic Development Divisions and Seaport Alliance are in compliance with
accounting policies and procedures, Generally Accepted Accounting Principles (GAAP) and Governmental
Accounting Standards to support a clean opinion on the Port of Seattle’s audited financial statements.
Reduce the Port of Seattle’s environmental liability through cost recovery from clean-up partners, grants and
insurers.
Attract, retain and develop a staff of financial experts with strong business sense and a customer service focus.
Continuously seek out ways to improve processes to make them more effective and efficient.
Not applicable
The Maritime Finance team is made up of a group of dedicated, resourceful, and professional team members.
We support a diverse group of businesses and an equally diverse group of customers who have varying
knowledge of financial concepts, goals for financial improvement and wants/needs for financial support.
Unlike the private sector, the Port of Seattle’s primary goal is not just about improving the bottom line, but
about creating jobs and economic vitality for the region while being a responsible steward of the environment.
This creates a challenge for Maritime Finance where the focus is on improving the bottom line. We reconcile
this situation by ensuring that the decision makers are well informed about the financial aspects and
implications of decisions so that the appropriate tradeoffs are taken into consideration.
Maritime and Economic Development Divisions are made up of a relatively diverse group of businesses that
require lead time for new staff members to fully understand.
Page A-27
Maritime Finance supports a diverse group of customers who have varying knowledge of financial concepts,
goals for financial improvement and wants/needs for financial support.
The budgeting cycle has extended from an approximately 4 month cycle (July – October) to effectively 6
month cycle (May – October).
Recent staff turnover has reduced the average years of Port experience staff members.
Time sensitive nature of business decisions typically require near immediate turn-around of financial analyses
and other work projects.
Due to volume of unanticipated requests we often find ourselves in a reactive mode rather than position to
make improvements and otherwise be proactive.

Advance the financial Financial analyses and Partnering with Port of Tacoma personnel,
aspects of the Seaport actions to advance the support the Performance Reporting for the
Alliance. Seaport Alliance are Seaport Alliance
insightful, thorough and Determine appropriate Seaport Alliance
timely financial support structure
Develop service cost share model

PERFORMANCE
Objective: Meet 2016 financial targets
Maritime Finance & Operating Expenses within Develop realistic Budget
Budget 2016 Operating 5% of 2016 Budget Monitor expenses on an ongoing basis and make
Expenses adjustments in spending as needed
Objective: Reduce the Port’s environmental liability through cost recovery
Partner reimbursements Port partners are invoiced Timely preparation of partner billings
invoiced and partners pay within 30 days after month- Monitor timeliness of partner payment with
in a timely manner end follow-up on any deliquencies
Department of Ecology Submissions are completed Proper set up of processes to to efficiently and
Grants are processed and reviewed within 30 effectively comply with grant requirements
quarterly days after quarter-end Timely preparation and review of grant
submissions
Page A-28
Insurance submittals are Submissions are completed Proper set up of processes to efficiently and
completed monthly and reviewed within 45 effectively meet insurance requirements
days after month-end. Timely preparation and review of insurance
submissions
Objective: Provide timely, accurate, and insightful financial information and analyses for the
Commission, Executive and other leadership teams for decision-making
Financial analyses Financial analyses are Provide analyses to evaluate existing and
insightful, thorough, changing business opportunities including:
accurate, and timely.  Investments in major capital and expense
projects
 Lease negotiations
 Customer financial operational issues
 Market rate analyses for marinas
 Real estate valuations
 Other business opportunities
Financial reporting Reporting deadlines as Complete quarterly performance reports
published by Corporate Monitor and update current year forecasts
Finance & Budget are met
2017 Maritime, Budget deadlines as Facilitate the Maritime, Economic Development
Economic Development, established by Corporate and Seaport Alliance 2017 Business Planning
Seaport Alliance Budgets Finance & Budget and process.
and financial capacity Commission Office are met Manage the Maritime, Economic Development
analysis. and Seaport Alliance 2017 Capital Budget
process
Manage the Maritime, Economic Development
and Seaport Alliance 2017 Operating Budget
process
Manage the 10-Year Environmental
Remediation forecast process
Manage the process and develop the 10-Year
Net Operating Income forecast
Page A-29
Objective: Ensure Divisions are in compliance with Accounting policies and procedures, Generally
Accepted Accounting Principles and Government Accounting Standards
Bi-annual measurement Completed on time and with Establish calendars for bi-annual update
of Environmental no audit findings Set up files and schedules in advance of start of
Remediation Liabilities update
Ensure proper training of project managers
making update
Perform thorough review of schedules with
analyses of unexpected results
Booking of new assets, Completed on time and with Team member are responsible for monitoring
removal of demolished no audit findings asset changes within assigned business and
assets and adjustment for service groups.
impaired assets. Reports monitoring the status of capital projects
are run on a quarterly basis with follow-up with
project managers
Detailed impairment review performed each
January with interim reviews performed as
circumstances arise.
2016 1/3 inventory of 100% complete by Initiate process including calendar of due dates
fixed assets 11/30/2016 with Marine Maintenance by March 15, 2016
Meet interim deadlines
Annual Environmental Key deadlines are met and Establish calendar and process for meeting
Remediation Liability reports are accurate. deadlines
spending authorization Perform process
and quarterly spending
Perform detailed as well “big picture” review of
reports.
authorization memo/quarterly spending reports.


% Participation in 100% of staff Each staff member will attend or participate in
diversity activities one diversity activity per year.
% Participation as a 100% of staff Each staff member will volunteer in at least one
volunteer in at least one Port sponsored event.
Port sponsored event.
% Personal Development 100% of staff Each staff member will include a personal
Plan in PREP development plan in PREP.
Page A-30
Completion of annual Complete PREP review Team members submit PREP self-reporting 2
PREP review on a timely within 1 week of review weeks prior to PREP review date.
basis date. Manager completes input and holds review
meeting within 1 week of review date.
Work process Continue to restructure and Continue to optimize structures.

improvements repopulate libraries within Move files from other libraries and from
the Maritime Finance M:Drive into new libraries. Especially key
SharePoint site to make it historic information.
easier (e.g. more intuitive)
Inform other relevant groups about new
for all to find past financial
structure.
analyses, supporting
workpapers, etc.
Objective: Attract, retain, inspire, and develop a diverse workforce that will achieve the Port’s vision
Staffing utilization Department is appropriately Continuous monitoring of workload and

staffed in that all members resources with adjustments as warranted
are fully utilized, but have
enough time to be able be
proactive rather than re-
active.
Page A-31

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MARITIME DIVISION 2016 BUSINESS PLAN

MAJOR AND NEW INITATIVES:

Manage our finances responsibly – “Optimize” Maritime Financial Performance

High Performance Organization

Fishing and Commercial

Shilshole Bay Marina

CHALLENGES AND OPPORTUNITIES:

Recreational Marina Challenges

Recreational Marina Opportunity

Fishing and Commercial Challenges

Fishing and Commercial Opportunity

Grain Challenge and Opportunity

STRATEGIES AND OBJECTIVES

STRATEGY: IMPLEMENT CENTURY AGENDA STRATEGIES – POSITION THE PUGET

Performance Measures Performance Target Actions

Performance Measures Performance Target Actions

STRATEGY: IMPLEMENT CENTURY AGENDA STRATEGIES – ADVANCE THIS REGION AS A

Performance Measures Performance Target Actions

Complete dredge of east Complete work with agencies to permit

STRATEGY: IMPLEMENT CENTURY AGENDA STRATEGIES – USE OUR INFLUENCE AS AN

Support workforce Support workforce Interface with Manufacturing Industrial Council

STRATEGY: IMPLEMENT CENTURY AGENDA STRATEGIES – BE THE GREENEST AND

Performance Measures Performance Target Actions

Meet conditions of Port No non-compliance Prepare annual report to Ecology to demonstrate

Performance Measures Performance Target Actions

Create 13 acres of habitat Construction underway by (assumes Trustee negotiations completed in

Performance Measures Performance Target Actions

Implement Lower Duwamish 1. Activated carbon study construction in 2016.

STRATEGY: MANAGE OUR FINANCES RESPONSIBLY - OPTIMIZE MARITIME FINANCIAL

Performance Measures Performance Target Actions

Objective: Grow Maritime Division Net Operating Income

Performance Measures Performance Target Actions

Performance Measures Performance Target Actions

Performance Measures Performance Target Actions

Performance Measures Performance Target Actions

Work process Staff is process Leadership reinforces need to continually look

APPENDIX – MARITIME DIVISION BUSINESS AND SERVICE GROUPS

 Appendix containing 2016 Business Plan Documents for:

APPENDIX – MARITIME DIVISION BUSINESS AND SERVICE GROUPS

APPENDIX – MARITIME DIVISION BUSINESS AND SERVICE GROUPS

2016 STRATEGIES AND OBJECTIVES

STRATEGY: IMPLEMENT CENTURY AGENDA STRATEGIES – POSITION THE PUGET

Performance Measures Performance Target Actions

Performance Measures Performance Target Actions

Review market demand

Complete rehabilitation Redevelopment of berths 6 Complete an analysis to make a decision

STRATEGY: IMPLEMENT CENTURY AGENDA STRATEGIES – ADVANCE THIS REGION AS A

Performance Measures Performance Target Actions

STRATEGY: IMPLEMENT CENTURY AGENDA STRATEGIES – USE OUR INFLUENCE AS AN

STRATEGY: IMPLEMENT CENTURY AGENDA STRATEGIES – BE THE GREENEST AND

Performance Measures Performance Target Actions

STRATEGY: HIGH PERFORMANCE ORGANIZATION

Performance Measures Performance Target Actions

Performance Measures Performance Target Actions

Commercial Properties – Ship Canal/Ballard Submarket

Fishermen’s Terminal and The Maritime Industrial Center - Waterside

2016 STRATEGIES AND OBJECTIVES