CAPITAL DELIVERY CONTEXT AND THEMES Steve Metruck, Executive Director 1 2 Why Capital Matters Today • Operational jobs • 109,575 direct jobs across SEA Airport, cruise, commercial fishing, recreational marinas, tenants and other business • Construction jobs • 1.6 million labor hours in 2024 (2,000 labor hours = 1 FTE) • Approximately 800 construction FTEs in 2024 3 Why Capital For Tomorrow • New facilities sustain operations • Expand economic activity • Create construction jobs • Foundation for future revenue 4 Affordability Factors Maintenance and Asset Management Environmental Remediation Construction Inflation & Compliance Costs Major Needs Ahead 5 Capital Delivery Improvements Capital Development Division • Engineering • Port Construction Services • Aviation Project Management & Program Controls • Seaport Project Management & Program Controls Maritime Division Economic Development Division • No direct function Aviation Division Maritime Division • Planning & Capital Programs • Project Management • Program Controls Aviation Division • Planning, Capital Programs & Infrastructure • Project Management • Program Controls • Portfolio Management Central Services • Central Procurement Office • Engineering • Port Construction Services • Central Procurement Office 2018 Current • No direct function Central Services • Planning & Capital Programs 6 Capital Delivery Improvements Central Procurement Office (CPO) Engineering Maritime External Review Panel Aviation Division Governance Review 7 Improved Capital Execution KPI Goal Portwide Capital Spending $1,000 80% execution rate on CIP annual baseline $900 $800 $ millions $700 $600 $500 $400 $300 $200 $100 $0 2014 2015 2016 2017 2018 Budget 2019 2020 2021 2022 2023 2024 Actuals 8 Budget/Schedule for Maritime Budget 2023 2024 2025 46 of 51 39 of 45 YTD: 33 of 40 (Goal: 75%) (90% on target) (87% on Target) Schedule 31 of 51 (Goal: 60%) (61% on target) 29 of 45 (64% on target) (83% On Target) YTD: 18 of 40 (45% on target) 9 Budget/Schedule for Aviation Current vs EAC Goal: 75% 92 of 107 Budget (88% on Target) 43 of 107 Schedule (40% on target) Annual Business Plan Goals 2023 2024 2025 Project Milestones (Goal: 75%) 34 of 38 32 of 39 YTD (thru Q2): 12 of 13 (92% on target) (89% on target) (82% on target) 10 Hard Costs vs. Soft Costs Aviation Hard Costs Estimate at Completion 79.96% Budget 80.28% Soft Costs 20.04% 19.72% Maritime 11 Entering a New Era • Emphasize long-range planning and prioritization, including for revenue • Alternative delivery methods and finance strategies • Regional owners collaboration • Integrating technology to improve efficiency Capital Improvement Program briefings October 14 and October 28 12 Next Steps • • • • Onboarding Chief Financial Officer and finalizing Aviation Managing Director roles Operations & Policy Review Capital Programs Vision 2026 Q1 Affordability retreat 13 13