1. PORT OF TACOMA Nationally: Port Security Grant Program (PSGP) Port Security Grant funds first appropriated in 2002 Approximately $400M each Federal Fiscal Year Port has received a total of $22.1M through previous PSGP grant rounds to enhance and harden our Security infrastructure. Introduction FIDUCIARY AGENT – PORT SECURITY GRANT PROGRAM ROUND 8

2. PORT OF TACOMA Funds allocated by maritime sector Sector Seattle (Sector Puget Sound) matches Captain of The Port jurisdictional authority Sector share has averaged approximately $25M The U.S. Coast Guard (USCG) does not directly administer these funds Two ways for funding to be administered - Directly by the Department of Homeland Security - Fiduciary Agent (FA) Process Administration FIDUCIARY AGENT – PORT SECURITY GRANT PROGRAM ROUND 8

3. PORT OF TACOMA Fiduciary System FIDUCIARY AGENT – PORT SECURITY GRANT PROGRAM ROUND 8 Captain of the Port Selects FA Grant Funding is allocated to USCG Sectors – geographic area thru Awarding the funding for the region to the Fiduciary Agent FA Assumes the role as Lead Grant Administrator FA coordinates review of projects with the Infrastructure Security Sub-Committee (ISS) to undergo in-depth review of each project at the regional level. Upon Completion of initial review by the ISS projects are briefed to the Area Maritime Security Committee (AMSC) and the Captain of the Port

4. PORT OF TACOMA Fiduciary System FIDUCIARY AGENT – PORT SECURITY GRANT PROGRAM ROUND 8 AMSC is given the opportunity to comment COTP provides final review and comments for the USCG Sector at the regional level Information for the region is uploaded to the FEMA portal by the FA and USCG -Investments Justifications and Budgets -COTP Recommendations and Project Ratings FEMA as DHS’s agent reviews all projects at the national level and allocates funding within the Sector FA Executes a sub-award agreement with all sub-grantees FA Management & Administration Costs are covered thru grant funds All projects are reimbursable – The Port of Tacoma as the Fiduciary Agent does not front the funding

5. PORT OF TACOMA Designated PSGP Puget Sound Region Fiduciary Agents Round 7BPort of Seattle Round 8Port of Tacoma Round 9 & 10Marine Exchange Puget Sound Region FA’s FIDUCIARY AGENT – PORT SECURITY GRANT PROGRAM ROUND 8

6. PORT OF TACOMA As stewards of Public Funds the Port of Tacoma in its current role as FA, provides increased security in the Puget Sound Region by leveraging DHS grant funding Promotes the Ports continuous commitment to protect all critical resources on a local, regional and national level Strengthens our partnership with neighboring ports and agencies Shared Responsibilities FIDUCIARY AGENT – PORT SECURITY GRANT PROGRAM ROUND 8

7. PORT OF TACOMA Request for Contract Increase FIDUCIARY AGENT – PORT SECURITY GRANT PROGRAM ROUND 8 Request authorization to increase Personal Service Agreement Contract No. 069005 to Moffatt & Nichol in the amount of $457,000 for work associated with the Fiduciary Agent – Grant Fund Administration Port Security Grant Program Round 8, Master ID No. 098164

8. PORT OF TACOMA In accordance with Port policies and procedures, Port Staff solicited for Personal Services to provide grant administrative support. Moffatt & Nichol was selected for these services. Work is on a time and materials basis A/E Selection FIDUCIARY AGENT – PORT SECURITY GRANT PROGRAM ROUND 8

9. PORT OF TACOMA Monitoring grants funds to ensure they meet all compliance requirements Program and financial reporting Provide Coordination and Facilitation Services as needed Meet record and reporting requirements, Office of Management and Budget (OMB) Circulars Monitor Project Performance & Responsiveness of Sub- Grantees Conduct periodic site visits to ensure project progress and verification of expenditures when needed Grant Administration Procedures Manual Assist with the formulation and execution of the Sub- Grantee agreement Scope of Work FIDUCIARY AGENT – PORT SECURITY GRANT PROGRAM ROUND 8

10. PORT OF TACOMA Phase 1 Application & Project Vetting Submission thru FEMA Portal Grant Administrative Procedures Manual Sub-Grantee Agreement Phase 2 Award Notifications Final Budget Revisions Execution of Sub-Grantee Agreement POT will issue a Notice to Proceed to Sub-Grantee Phase 3 Project Monitoring & Implementation Project Closeouts Project Phases FIDUCIARY AGENT – PORT SECURITY GRANT PROGRAM ROUND 8

11. PORT OF TACOMA The Port of Tacoma executed the initial contract with Moffatt & Nichol in October of 2009 for the amount of $75,000 under the Chief Operations Officer contract authority. Phase 1 Administrative and Regional Review of $11.3M in Applications ($21M Pending Review) Grant Administration Procedures Manual Sub-Award Agreement Work Completed To Date FIDUCIARY AGENT – PORT SECURITY GRANT PROGRAM ROUND 8

12. PORT OF TACOMA Source of funds will be grant awards from the Department of Homeland Security Grant Program of $27,263,241 with a 3% retained by the Port of Tacoma as Fiduciary Agent in the amount of $817,897. Source of Funds FIDUCIARY AGENT – PORT SECURITY GRANT PROGRAM ROUND 8

13. PORT OF TACOMA Financial Impact FIDUCIARY AGENT – PORT SECURITY GRANT PROGRAM ROUND 8 ItemBudget Estimate Expenditures Prior to Date Additional Expenditures for 2010 Anticipated Expenditures for 2011 Anticipated Expenditures for 2012 Anticipated Expenditures for 2013 Consultant$532,000$74,100$55,575$141,875$118,567$141,884 POT Staff Time$270,897$33,203$24,902$73,894$62,344$76,554 Other*$15,000$3,710$2,783$2,500$1,500$4,507 Total$817,897$111,013$83,260$218,268$182,410$222,946 Grant Reimbursement$817,897$111,013$83,260$218,268$182,410$222,946 * Other includes outreach sessions, publications & travel

14. PORT OF TACOMA Request authorization to increase Personal Service Agreement Contract No. 069005 to Moffatt & Nichol in the amount of $457,000. The initial contract value was $75,000. This increase will result in a “not to exceed” amount of $532,000 for work associated with the Fiduciary Agent – Grant Fund Administration Port Security Grant Program Round 8, Master ID No. 098164 Conclusion FIDUCIARY AGENT – PORT SECURITY GRANT PROGRAM ROUND 8