7b supp
ITEM NO: 7b_supp MEETING DATE: October 13, 2015 Maritime Division 2016 Budget Briefing October 13, 2015 Maritime Division Commercial & Recreational Cruise & Maritime Operations Marinas Cruise Fishermen's Terminal Maritime Operations (docks) Waterside Security Landside Maritime Industrial Center Maritime Industrial Waterside Landside Grain Terminal Shilshole Bay Marina Terminal 91 Industrial Waterside Terminal 106 East Landside Other Marinas Service Groups Bell Harbor Marina Harbor Island Marina Marine Maintenance Environmental & Planning Maritime Finance Maritime Admin Due to transfer of certain staff and functions to NWSA, not all budgets are directly comparable 2 2016 Budget Key Volume Assumptions Cruise forecasts 959,800 passengers a 7% increase over 2015 Budget and 2015 forecast. Grain volume at 4.0 million metric tons equal to 2015 Budget and above 2015 forecast of 3.6 million metric tons. Recreational Marina occupancy rate average of 95% consistent with 2015 Budget and current results. Fishing & Commercial occupancy rates average of 82% consistent with 2015 forecast and above 2015 Budget of 79%. Commercial Building Properties target 96%+ occupancy at year-end 2016 consistent with current results. 3 Org Revenues By Group Maritime Division Only Incr (Decr) Incr (Decr) 2014 2015 2015 2016 16-'15 Bud Chg 16-'15 Frcst Chg $'s Thousands Actual Budget Forecast Budget $ % $ % Revenue Commercial & Rec Marinas 15,965 16,420 16,413 17,316 895 5.5% 902 5.5% Grain 3,785 5,061 4,537 5,000 (61) -1.2% 463 10.2% Maritime Industrial Properties 5,851 6,147 5,915 5,952 (195) -3.2% 36 0.6% Cruise 12,931 14,296 14,387 15,333 1,036 7.2% 946 6.6% Maritime Operations 4,992 5,209 5,462 5,567 357 6.9% 105 1.9% Maintenance & Env Services 735 358 818 384 26 7.2% (434) -53.1% Total Revenue 44,259 47,492 47,533 49,551 2,059 4.3% 2,017 4.2% Increase in Commercial & Recreational Marinas reflects stable or higher occupancies and higher rates. Decrease in Grain and Maritime Industrial Properties is Surface Water Utility revenue which is now recognized in Stormwater Utility. Marine Maintenance reimbursable work expected to decrease relative to 2015 Forecast. Revenue increases by 4% over 2015 Budget and 2015 Forecast 4 Org Expenses By Group Maritime Division Expenses Only Incr (Decr) Incr (Decr) 2014 2015 2015 2016 '16-'15 Bud Chg '16-'15 Frcst Chg $'s Thousands Actual Budget Forecast Budget $ % $ % Org Operating Expenses Commercial & Rec Marinas 5,870 6,481 6,032 6,683 202 3% 651 11% Grain 106 142 69 72 (69) -49% 4 6% Maritime Industrial Properties 1,728 2,016 1,695 2,004 (13) -1% 308 18% Cruise & Maritime Operations 4,393 5,377 4,905 5,454 76 1% 548 11% Maintenance 16,005 18,153 17,581 19,710 1,557 9% 2,129 12% Facility/Property Maintenance 16,005 18,153 17,581 18,192 39 0% 611 3% Stormwater Utility Assessments 0 0 0 1,518 1,518 NA 1,518 NA Envir Services & Planning 2,817 3,350 3,433 2,587 (763) -23% (846) -25% Maritime Div Admin & Finance 1,473 1,974 1,455 1,762 (211) -11% 308 21% Envir Remed Exp/Other -202 250 715 343 93 37% (373) -52% Total Operating Expenses 32,190 37,743 35,885 38,615 871 2.3% 2,729 7.6% Decrease in Environmental & Planning reflects transfer of 4 FTE's and some services to NWSA. Marine Maintenance will be performing stormwater pipe condition assessments for the Stormwater Utility. This is new work outside of the scope of traditional projects. Commercial & Recreational Marinas reflect tenant improvements and broker fees for large space at Fishermen's Terminal Landside. 2016 Budget reflects transfer of FTE's in Environmental, Planning and Cruise & Maritime Operations to NWSA 5 Full-Time Equivalents (FTEs) 2015 Budget 202.8 Transfer from Engineering 0.5 Transfers to NWSA (Commercial Strategy, Containers, Ind Props) -14.0 Transfers to NWSA (Env Services, Planning, Cruise Maritime Admin) -5.0 2015 Budget Adjusted 184.3 Changes in 2015 Staff Additions* 4.5 Staff Transfer 1.0 Staff Reductions -6.1 2015 Baseline 183.8 2016 Budget Staff Reductions: Former Director of Security Position (1.0) Staff Addition: Sr. Env Program Mgr. - Sustainability and Energy 1.0 Net Change 0.0 Proposed 2016 Budget 183.8 Note*: An additional 1 FTE was approved in 2015 for the Stormwater Utility Staffing is flat relative to the 2015 Adjusted Budget. 6 Maritime Division Org Expense Budget Maritime Division Expenses Only 2015 2016 Incr (Decr) $'s Thousands Budget Budget Change % Explanation Baseline Budget Salaries 8,694 8,515 (178) -2.1% 5 FTE's to NWSA Benefits 3,339 3,405 65 2.0% Wages & Benefits 9,573 10,069 496 5.2% Increase in Maintenance OPEB 43 49 6 13.9% Salaries & Wages to Cap, Non-op,ERL 1,676 1,598 (78) -4.6% Total Payroll Costs 23,324 23,636 312 1.3% Net Payroll Exp (net of to capital,Non-op) 21,649 22,038 390 1.8% Utilities 5,667 5,538 (129) -2.3% Primarily Stormwater Equipment Expense 224 295 71 31.8% Maint Materials and Vehicle Parts 1,061 1,144 83 7.8% Outside Services 4,227 3,213 (1,014) -24.0% Env Srvs to NWSA, less Maint Use, Div Admin Travel & Other Employee Exp 405 327 (78) -19.3% Overhead to Capital (902) (714) 188 -20.9% Other O&M 2,030 2,011 (19) -0.9% Total Baseline Budget 34,360 33,852 (508) -1.5% Initiatives Tenant Improve, Broker Fees,Space Plan 202 319 118 58.3% Vacancies to be filled at Fishermen's Terminal Tribal Agreements 416 0 (416) -100.0% Now Budgeted in NWSA Terminal 91 Maintenance Dredge 1,240 400 (840) -67.7% Project delayed and costs lower than expected Cruise Related 0 1,481 1,481 NA New lease agreement Maintenance Contingency 300 300 0 0.0% W50 Building Demolition 975 875 (100) -10.3% Project delayed to 2016 Stormwater Utility Work 0 1,005 1,005 NA Stormwater Utility Line Assessments T5, T18, T46 New Maintenance Work 0 180 180 NA Total 3,133 4,561 1,427 45.6% Total Operating Expenses 37,493 38,413 919 2.5% Envir Remediation Liability 250 202 (48) -19.2% 7 Total Expenses 37,743 38,615 871 2.3% Non-Operating Expenses Maritime Division Expenses Only $'s Thousands 2016 Non-Operating Expense Budget Clean Air Program Cruise (TBD) $150 Street Improvement* Cruise P66 Alaskan Way Street Improvements $400 (additional expense to be incurred in 2017) Non-Op Envir Remediation Liability Expense Envir Remediation Liability - Maritime 5,000 Total $5,550 Note*: Project is under preliminary design. Expected to come forward for Commission approval in late 2015 with completion targeted in Q1 2017. These initiatives/projects and Environmental Remediation Liability are classified as Non-Operating Expenses 8 Maritime Division Budget Summary Inclusive of Direct Charges & Allocations from Corporate, CDD, & Other Divisions Incr (Decr) Incr (Decr) 2014 2015 2015 2016 '16-'15 Bud Chg '16-'15 Frcst Chg $'s Thousands Actual Budget Forecast Budget $ % $ % Revenues Operating Revenues 43,790 47,264 46,957 49,314 2,050 4% 2,357 5% Total Revenues 43,790 47,264 46,957 49,314 2,050 4% 2,357 5.0% Expenses Maritime Expenses (excl env srvs) 12,187 14,184 12,241 15,456 1,271 9% 3,214 26% Envir Services & Planning 966 1,273 1,273 1,430 157 12% 157 12% Maintenance Expenses 8,314 10,375 10,028 10,576 201 2% 548 5% P69 Facilities 149 180 159 294 114 63% 135 85% Other Econ Dev Expenses 597 651 651 588 (63) -10% (63) -10% CDD Expenses 2,390 1,819 1,756 1,769 (50) -3% 13 1% Police Expenses 2,983 2,807 2,800 4,023 1,216 43% 1,223 44% Corporate Expenses 4,647 5,144 5,038 7,865 2,721 53% 2,827 56% Envir Remediation Liability (378) 250 715 202 (48) -19% (513) -72% Operating Expenses 31,854 36,683 34,661 42,202 5,519 15% 7,541 22% Net Operating Income 11,936 10,581 12,296 7,112 (3,469) -33% (5,184) -42% Net Operating Income impacted by 2016 Initiatives and increase in Corporate Allocations 9 Maritime Division 2016 Capital Budget October 13, 2015 Maritime 2016 Capital Budget Overall 2016-2020 dollar amount of projects at ~$112 million Projects support: Century Agenda Strategy: Double Economic Value Cruise Traffic to Washington State and Asset Stewardship Funding capacity for projects not yet determined Other $3,557 Fleet Repl. $4,733 Location Breakout in $000s Contingency FT $33,975 $22,000 Container $2,706 Maritime Ind Ctr Maritime Industrial $938 Prop $1,709 Cruise $25,628 Shilshole Bay Harbor Is Marina Marina $7,606 Maritime Ops/Docks $3,084 $1,850 BHM $3,860 Fishermen's Terminal and Cruise projects make up 30% and 23% of the total 2016- 2020 Capital Budget, respectively. 11 Maritime 2016 Capital Budget Capital Budget Summary By Status $'s in 000's 2016 2017 2018 2019 2020 2016-20 Commission Authorized/Underway 16,013 6,812 195 243 0 23,263 Pending 2015/2016 Authorization 3,496 4,035 4,063 0 0 11,594 Pending Future Authorization 4,011 7,470 18,858 22,843 11,380 64,562 Small Capital and Other 3,960 2,795 1,505 1,551 2,416 12,227 Total 27,480 21,112 24,621 24,637 13,796 111,646 Overall 2016-2020 dollar amount of projects at $111.6 million Funding Capacity for projects not yet determined 12 Maritime Division 2016 Capital Budget Commission Authorized*/Underway $'s in 000's 2016 2017 2018 2019 2020 2016-20 Pier 66 Cruise Tenant Improve Allow 12,000 1,500 0 0 0 13,500 SBM Restrooms/Service Bldgs Replace 1,805 3,366 0 0 0 5171 T91 Substation Upgrades 1,073 26 0 0 0 1099 T46 Public Access Mitigation at T117 515 513 0 0 0 1028 T18 Street Vacation Completion 200 1,150 0 0 0 1350 T5 Street Vacation Completion 140 62 0 0 0 202 Cruise Cap Allowances - CTA Lease 135 195 195 243 0 768 FT C-2 (Nordby) Roof & HVAC 54 0 0 0 0 54 FT C15 HVAC Improvements 30 0 0 0 0 30 Argo Yard Roadway Element I 25 0 0 0 0 25 FT Net Shed 9 Roof Replacement 21 0 0 0 0 21 P90 C175 Roof Replacement 10 0 0 0 0 10 SBM Central Seawall Replacemnt 5 0 0 0 0 5 Total 16,013 6,812 195 243 0 23,263 Note*: Includes projects where some portion of the budget is authorized by Commission Pier 66 Cruise Tenant Improvement project supports Century Agenda Goal: Double Economic Value of Cruise Traffic to Washington State 13 Maritime Division 2016 Capital Budget Pending 2015/2016 Authorization $'s in 000's 2016 2017 2018 2019 2020 2016-20 FT Paving/Storm Upgrades 800 50 0 0 0 850 FT C15 Building Tunnel Improvement 700 0 0 0 0 700 SBM Paving 670 130 400 0 0 1,200 Marina Mgt Sys Replacement 550 0 0 0 0 550 Harbor Island Marina East Dock 325 75 0 0 0 400 FT C14 (Downie) Roof & HVAC 105 1,015 72 0 0 1,192 FT Net Shed 3,4,5 & 6 Roof Replace 105 2,515 91 0 0 2,711 T46 Viaduct Driven Capital Wor 101 0 0 0 0 101 P66 Cruise Improvement-Staff Oversight 90 90 0 0 0 180 Bell Harbor Marina Pile Wraps 50 160 3,500 0 0 3,710 Total 3,496 4,035 4,063 0 0 11,594 Projects maintain existing assets supporting Maritime vitality 14 Maritime Division 2016 Capital Budget Pending Future Authorization $'s in 000's 2016 2017 2018 2019 2020 2016-20 P91 South End Fender Replace 950 1,127 0 0 0 2,077 Maintenance North Office Site Improve 500 0 0 0 0 500 P66 Cruise Term Roof Fall Protection 271 20 0 0 0 291 T91 P91 West Slope Stabilization 120 404 0 0 0 524 P66 Cruise Terminal Stand Offs 100 500 0 0 0 600 Second Gangway per Berth @ T91 50 450 4,000 0 5,000 9,500 FT Dock 4 Fixed Pier Corr Protection 10 190 1,000 2,300 0 3,500 FT Dock 3 Fixed Pier Improvement 10 190 800 2,000 0 3,000 FT Strategic Plan 0 1,000 5,000 4,000 0 10,000 SBM Lower A Dock Improvement 0 825 0 0 0 825 Harbor Island Marina C Dock 0 500 0 0 0 500 FT S Wall West End Improvements 0 174 970 530 0 1,674 MIC West & Central Piers Resurfacing 0 70 638 0 0 708 FT W Wall N Fender Replacement 0 10 190 2,750 0 2,950 FT W Wall N Sheet Pile Corr Protection 0 10 190 2,575 0 2,775 FT Net Shed Electrical System 0 0 70 2,168 0 2,238 Harbor Island Marina ABD Dock 0 0 0 500 0 500 FT S Wall Ctrl Fender Repair&Corr Protect 0 0 0 10 190 200 FT W Wall S Sheet Pile Corr Protection 0 0 0 10 190 200 Contingency Renewal & Replace. 2,000 2,000 6,000 6,000 6,000 22,000 Total 4,011 7,470 18,858 22,843 11,380 64,562 Projects maintain existing assets supporting Maritime vitality 15 Maritime Division 2016 Capital Budget Small Projects $'s in 000's 2016 2017 2018 2019 2020 2016-20 SEA Security Grant Rnd 14 120 0 0 0 0 120 Small Capital Projects 2,514 1,370 500 500 1,240 6,124 MD Technology Projects 250 250 250 250 250 1,250 MD Fleet Replacement 1,076 1,175 755 801 926 4,733 Total 3,960 2,795 1,505 1,551 2,416 12,227 Individual projects under each category in this grouping have a cost of $300,000 or less and maintain existing assets supporting Maritime vitality 16 Appendix - Supplementary Slides Maritime Division Capital Budget By Location Maritime 2016 Capital Budget By Location Cruise Terminals CRUISE 2016 2017 2018 2019 2020 2016-2020 Cruise Status Description Commission Authorized Pier 66 Cruise Tenant Improve Allow 12,000 1,500 0 0 0 13,500 Commission Authorized Cruise Cap Allowances - CTA Lease 135 195 195 243 0 768 Pending 2016 Authorization P66 Cruise Improvements - Staff Oversight 90 90 0 0 0 180 Pending Future Authorization P66 Cruise Term Roof Fall Protection 271 20 0 0 0 291 Pending Future Authorization T91 P91 West Slope Stabilization 120 404 0 0 0 524 Pending Future Authorization P66 Cruise Terminal Stand Offs 100 500 0 0 0 600 Pending Future Authorization Second Gangway per Berth @ T91 50 450 4,000 0 5,000 9,500 Small Projects Cruise Small Projects 265 0 0 0 0 265 Total Cruise 13,031 3,159 4,195 243 5,000 25,628 Pier 66 Cruise Tenant Improvement project supports Century Agenda Goal: Double Economic Value of Cruise Traffic to Washington State 19 Maritime 2016 Capital Budget By Location Fishermen's Terminal FISHERMEN'S TERMINAL 2016 2017 2018 2019 2020 2016-2020 FT Waterside Projects Capital Projects Status Description Pending Future Authorization FT Dock 4 Fixed Pier Corr Protection 10 190 1,000 2,300 0 3,500 Pending Future Authorization FT Dock 3 Fixed Pier Improvement 10 190 800 2,000 0 3,000 Pending Future Authorization FT S Wall West End Improvements 0 174 970 530 0 1,674 Pending Future Authorization FT W Wall N Fender Replacement 0 10 190 2,750 0 2,950 Pending Future Authorization FT W Wall N Sheet Pile Corr Protection 0 10 190 2,575 0 2,775 Pending Future Authorization FT Net Shed Electrical System 0 0 70 2,168 0 2,238 Pending Future Authorization FT S Wall Ctrl Fender Repair&Corr Protect 0 0 0 10 190 200 Pending Future Authorization FT W Wall S Sheet Pile Corr Protection 0 0 0 10 190 200 Small Projects FT Waterside Small Capital Projects 0 0 0 0 140 140 Total FT Waterside 20 574 3,220 12,343 520 16,677 FT Upland Projects Capital Projects Status Description Commission Authorized FT C-2 (Nordby) Roof & HVAC 54 0 0 0 0 54 Commission Authorized FT C15 HVAC Improvements 30 0 0 0 0 30 Commission Authorized FT Net Shed 9 Roof Replacement 21 0 0 0 0 21 Pending 2016 Authorization FT Paving/Storm Upgrades 800 50 0 0 0 850 Pending 2016 Authorization FT C15 Building Tunnel Improvement 700 0 0 0 0 700 Pending 2016 Authorization FT C14 (Downie) Roof & HVAC 105 1,015 72 0 0 1,192 Pending 2016 Authorization FT Net Shed 3,4,5 & 6 Roof Replace 105 2,515 91 0 0 2,711 Pending Future Authorization FT Strategic Plan 0 1,000 5,000 4,000 0 10,000 Pending Future Authorization FT Net Shed 10 Roof Overlay 0 0 0 0 0 0 Pending Future Authorization FT Net Shed 11 Roof Overlay 0 0 0 0 0 0 Small Projects FT Uplands Small Capital Projects 595 0 225 0 920 1,740 Total FT Upland Projects 2,410 4,580 5,388 4,000 920 17,298 TOTAL FISHERMEN'S TERMINAL 2,430 5,154 8,608 16,343 1,440 33,975 Projects maintain existing assets supporting Maritime vitality 20 Maritime 2016 Capital Budget By Location Maritime Industrial Center MARITIME INDUSTRIAL CENTER 2016 2017 2018 2019 2020 2016-2020 Maritime Industrial Center Status Description Pending Future Authorization MIC West & Central Piers Resurfacing 0 70 638 0 0 708 Small Projects MIC Small Capital Projects 0 50 0 0 180 230 TOTAL MARITIME INDUSTRIAL CENTER 0 120 638 0 180 938 Projects maintain existing assets supporting Maritime vitality 21 Maritime 2016 Capital Budget By Location Shilshole Bay Marina SHILSHOLE BAY MARINA 2016 2017 2018 2019 2020 2016-2020 Shilshole Bay Marina Recreational Boating Status Description Commission Authorized SBM Central Seawall Replacement 5 0 0 0 0 5 Commission Authorized SBM Restrooms/Service Bldgs Replace 1,805 3,366 0 0 0 5,171 Pending 2016 Authorization SBM Paving 670 130 400 0 0 1,200 Pending Future Authorization SBM Lower A Dock Improvement 0 825 0 0 0 825 Small Projects SBM Waterside Small Projects 85 170 150 0 0 405 TOTAL SHILSHOLE BAY MARINA 2,565 4,491 550 0 0 7,606 Projects maintain existing asset supporting Maritime vitality 22 Maritime 2016 Capital Budget By Location Bell Harbor and Harbor Island Marinas OTHER MARINAS 2016 2017 2018 2019 2020 2016-2020 Bell Harbor Marina Status Description Pending 2016 Authorization Bell Harbor Marina Pile Wraps 50 160 3,500 0 0 3,710 Small Projects Bell Harbor Marina Small Projects 10 140 0 0 0 150 Total Bell Harbor Marina 60 300 3,500 0 0 3,860 Harbor Island Marina Status Description Pending 2016 Authorization Harbor Island Marina East Dock 325 75 0 0 0 400 Pending Future Authorization Harbor Island Marina C Dock Rehab 0 500 0 0 0 500 Pending Future Authorization Harbor Island Marina ABD Dock Rehab 0 0 0 500 0 500 Small Projects Small Capital Projects 165 285 0 0 0 450 Total Harbor Island Marina 490 860 0 500 0 1,850 TOTAL OTHER MARINAS 550 1,160 3,500 500 0 5,710 Projects maintain existing assets supporting Maritime vitality 23 Maritime 2016 Capital Budget By Location Maritime Industrial Properties & Maritime Operations MARITIME INDUSTRIAL PROPERTIES 2016 2017 2018 2019 2020 2016-2020 Terminal 91 Status Description Commission Authorized T91 Substation Upgrades 1,073 26 0 0 0 1,099 Commission Authorized P90 C175 Roof Replacement 10 0 0 0 0 10 Small Projects Maritime Industrial Small Projects 425 0 0 175 0 600 TOTAL MARITIME INDUSTRIAL PROPERTIES 1,508 26 0 175 0 1,709 MARITIME OPERATIONS 2016 2017 2018 2019 2020 2016-2020 Maritime Operations Status Description Pending Future Authorization P91 South End Fender Replace 950 1,127 0 0 0 2,077 Small Projects Maritime Operations Small Projects 282 725 0 0 0 1,007 Total Maritime Operations 1,232 1,852 0 0 0 3,084 Projects maintain existing assets supporting Maritime vitality 24 Maritime 2016 Capital Budget By Location OTHER PROJECTS OTHER PROJECTS 2016 2017 2018 2019 2020 2016-2020 Other Status Description Pending 2016 Authorization Marina Management System 550 0 0 0 0 550 Pending Future Authorization Marine Maint North Office Site Improve 500 0 0 0 0 500 Pending Future Authorization Contingency Renew & Replace 2,000 2,000 6,000 6,000 6,000 22,000 Small Projects Seaport Security Grant Round 14 120 0 0 0 0 120 Small Projects Fleet Replacement 1,076 1,175 755 801 926 4,733 Small Projects Maritime Technology Projects 250 250 250 250 250 1,250 Small Projects Marine Maintenance Small Projects 687 0 0 0 0 687 Small Projects Maritime Unindentified Projects 0 0 125 325 0 450 TOTAL OTHER PROJECTS 5,183 3,425 7,130 7,376 7,176 30,290 Projects maintain existing assets supporting Maritime vitality 25 Maritime 2016 Capital Budget By Location HOMEPORT CONTAINER PROJECTS HOMEPORT CONTAINER PROJECTS 2016 2017 2018 2019 2020 2016-2020 Other Status Description Commission Authorized T46 Public Access Mitigation at T117 515 513 0 0 0 1,028 Commission Authorized T18 Street Vacation Completion 200 1,150 0 0 0 1,350 Commission Authorized T5 Street Vacation Completion 140 62 0 0 0 202 Commission Authorized Argo Yard Roadway Element I 25 0 0 0 0 25 Commission Authorized T46 Viaduct Driven Capital Work 101 0 0 0 0 101 Pending Future Authorization T30 Alaskan Way Street Vacation 0 0 0 0 0 0 HOMEPORT CONTAINER PROJECTS 981 1,725 0 0 0 2,706 Legacy Container related projects to be funded by the Homeport. 26
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