Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
6b
ACTION ITEM
Date of Meeting
February 27, 2018
DATE: February 14, 2018
TO: Steve Metruck, Executive Director
FROM: Duane Hill, AFR Senior Manager Disbursements
SUBJECT: Claims and Obligations January 2018
ACTION REQUESTED
Request Port Commission approval of the Port Auditor’s payment of the salaries and claims of the Port
pursuant to RCW 42.24.180 for payments issued during the period January 1, 2018 through January 31, 2018
as follows:
Payment Type
Payment Reference
Start Number
Payment Reference
End Number
Amount
Accounts Payable Checks
921673
922215
$ 6,863,005.83
Accounts Payable ACH
005119
005833
$ 54,295,371.62
Accounts Payable Wire Transfers
014808
014831
$ 12,833,766.23
Payroll Checks
188585
188791
$ 242,426.49
Payroll ACH
840383
844345
$ 9,618,465.67
Total Payments
$ 83,853,035.84
Pursuant to RCW 42.24.180, “the Port’s legislative body” (the Commission) is required to approve in a public
meeting, all payments of claims within one month of issuance.
OVERSIGHT
All of these payments have been previously authorized either through direct Commission action or delegation
of authority to the Executive Director (ED) and through his or her staff. Detailed information on Port
expenditures is provided to the Commission through comprehensive budget presentations as well as the
publicly released Budget Document, which provides an even greater level of detail. The Port’s operating and
capital budget is approved by resolution in November for the coming fiscal year, and the Commission also
approves the Salary and Benefit Resolution around the same time to authorize pay and benefit programs.
Notwithstanding the Port’s budget approval, individual capital projects and contracts exceeding certain dollar
thresholds are also subsequently brought before the Commission for specific authorization prior to
commencement of the project or contract—if they are below the thresholds the ED is delegated authority to
COMMISSION AGENDA – Action Item No. 6b Page 2 of 3
Meeting Date: February 27, 2018
Template revised September 22, 2016.
approve them. Expenditures are monitored against budgets on a monthly basis by management and reported
comprehensively to the Commission quarterly.
Effective internal controls over all Port procurement, contracting and disbursements are also in place to
ensure proper central oversight, delegation of authority, separation of duties, payment approval and
documentation, and signed perjury statement certifications for all payments. Port disbursements are also
regularly monitored against spending authorizations. All payment transactions and internal controls are
subject to periodic Port internal audits and annual external audits conducted by both the State Auditor’s
Office and the Port’s independent auditors.
For the month of January, $74 million in accounts payable payments were made to 759 vendors/contractors,
comprised of 2,933 vouchers and 13,669 accounting expense transactions. About 84 percent of the accounts
payable payments made in the month fall into the Construction, Contracted Services, Employee Benefits,
Payroll Taxes, NWSA Construction, Janitorial Services and Environmental Remediation expense categories.
The following chart summarizes the top 15 expense categories by total spend.
Appropriate and effective internal controls are in place to ensure that the above obligations were processed in
accordance with Port of Seattle procurement/payment policies and delegation of authority.
Category Payment Amount
Construction 31,289,661.04$
Employee Benefits 10,081,464.43$
Contracted Services 6,745,357.28$
NWSA Construction Costs 4,154,932.29$
Leasehold Taxes 4,140,466.68$
Payroll Taxes 3,923,113.56$
Utility Expenses 2,005,035.00$
Janitorial Services 1,254,359.19$
Sales Taxes 1,244,426.49$
Software 1,095,716.43$
Bond Fees 773,741.14$
Maintanance Inventory 761,309.23$
Environmental Remediation 703,993.50$
Membership Dues 627,691.41$
Parking Taxes 627,586.95$
Other Categories total 4,563,289.06$
Port Net Payroll 9,860,892.16$
Total Payments 83,853,035.84$
COMMISSION AGENDA – Action Item No. 6b Page 3 of 3
Meeting Date: February 27, 2018
Template revised September 22, 2016.
At a meeting of the Port Commission held on February 27, 2018, it is hereby moved that, pursuant to RCW
42.24.180, the Port Commission approves the Port Auditor’s payment of the above salaries and claims of the
Port:
Port Commission
