7b supp
ITEM NO. 7b_Supp DATE OF MEETING May 8 , 2012 Corrected Copy: May 7, 2012 Q1 2012 Performance Report Port of Seattle Commission Briefing May 8, 2012 Q1 Financial Highlights Total Port Operating Revenues were $119.6 million, $6.3 million, or 5.5%, over Q1 2011 Operating Revenues were $293K, or 0.2%, above budget Port wide Operating Expenses were $7.1 million, or 9.9% below budget - all divisions' expenses were under budget for the first quarter Net Income Before Depreciation was $7.5 million, or 15.8% above budget and 1.8% lower than Q1 2011 Net Income After Depreciation was $6.4 million, or 81.3% above budget and 10.0% lower than Q1 2011 2 Q1 Major Revenue Variances 2011 YTD 2012 YTD 2012 YTD Budget Change Major Revenues ($ in 000's) Actual Actual Budget Variance from 2011 Aero Revenues 50,717 51,634 53,013 (1,379) 917 Seaport Security Grants 40 816 767 49 776 Public Parking 12,018 12,368 12,504 (136) 349 Rental Cars 6,921 6,593 10,040 (3,447) (329) Concessions 7,799 8,185 7,903 283 386 Ground Transportation 1,729 1,887 1,822 65 159 Container 16,712 19,491 15,439 4,051 2,779 Seaport Industrial Properties 3,208 3,881 3,549 332 672 Grain 1,555 1,746 1,451 295 191 Third Party Management 2,397 2,663 2,743 (80) 265 Other 10,182 14,211 13,607 604 821 Subtotal 62,574 67,187 65,565 1,622 4,613 TOTAL 113,331 119,637 119,345 293 6,306 Excluding Aeronautical Revenues and Seaport Security Grants, Other Operating Revenues were $1.6M higher than budget and $4.6M higher than Q1 2011. 3 Q1 Major Expense Variances 2011 YTD 2012 YTD 2012 YTD Budget Change Major Expenses ($ in 000's) Actual Actual Budget Variance from 2011 %,FACCOUNT,TALL_ACCOUNTS2,NA5210Salaries & Benefits 20,408 22,784 23,618 834 2,376 %,FACCOUNT,TALL_ACCOUNTS2,NA5410Wages & Benefits 19,602 21,322 23,134 1,812 1,721 %,FACCOUNT,TALL_ACCOUNTS2,X,NA5990Payroll to Capital Projects 4,888 4,641 5,605 963 (247) %,FACCOUNT,TALL_ACCOUNTS2,NA6120Equipment Expense 1,343 1,223 1,193 (30) (121) %,FACCOUNT,TALL_ACCOUNTS2,NA6310Supplies & Stock 1,751 1,899 1,658 (241) 148 %,FACCOUNT,TALL_ACCOUNTS2,NA6410Outside Services 7,101 8,305 12,286 3,981 1,204 %,FACCOUNT,TALL_ACCOUNTS2,NA6210Utilities 4,945 5,148 4,825 (322) 202 %,FACCOUNT,TALL_ACCOUNTS2,NA6510Travel & Other Employee Exps 688 688 1,593 905 - %,FACCOUNT,TALL_ACCOUNTS2,NA6650,NA6670,NA6690,NA6710Other Expenses 3,617 5,788 6,211 423 2,171 %,FACCOUNT,TALL_ACCOUNTS2,NA6850Charges to Capital Projects (6,609) (6,768) (7,935) (1,168) (158) %,FACCOUNT,TALL_ACCOUNTS2,NA5000TOTAL 57,734 65,030 72,188 7,158 7,296 Operating Expenses were $7.2M lower than budget mainly due to some vacant positions and timing of spending. Operating Expenses were $7.3M higher than Q1 2011 mainly due to higher payroll costs, outside services expense, utilities cost, pass-through grants expense, and unanticipated litigations. 4 Q1 Operating Income Summary 2011 YTD 2012 YTD 2012 YTD Budget Variance ($ in 000's) Actual Actual Budget $ % Aeronautical Revenues 50,717 51,634 53,013 (1,379) -2.6% Other Operating Revenues 62,614 68,003 66,332 1,672 2.5% Total Operating Revenues 113,331 119,637 119,345 293 0.2% Total Operating Expenses 57,734 65,030 72,188 7,158 9.9% NOI before Depreciation 55,597 54,607 47,156 7,451 15.8% Depreciation 39,834 40,414 39,328 (1,086) -2.8% NOI after Depreciation 15,762 14,193 7,828 6,365 81.3% Total Operating Revenues were $293K higher than budget. Total Operating Expenses were $7.2M lower than budget. NOI before Depreciation was $54.6M, $7.4M higher than budget. 5 2012 Year-End Forecast 2011 2012 2012 Budget Variance ($ in 000's) Actual Forecast Budget $ % Aeronautical Revenues 207,248 234,029 235,706 (1,677) -0.7% Other Operating Revenues 275,924 293,340 281,176 12,164 4.3% Total Operating Revenues 483,172 527,369 516,882 10,487 2.0% Total Operating Expenses 267,416 309,239 309,844 605 0.2% NOI before Depreciation 215,756 218,130 207,038 11,092 5.4% Depreciation 158,107 161,235 158,479 (2,756) -1.7% NOI after Depreciation 57,649 56,895 48,559 8,336 17.2% Total Revenues are forecasting to be $10.5M above budget mainly due to refunding of the T18 Special Facilities Bonds. Total Expenses are forecasting to be $605K below budget mainly due to some vacant positions. NOI before Depreciation is forecasting to be $11.1M over budget. 6 Capital Spending by Division 2011 2012 2012 Budget Plan of Division Actual Forecast Budget Variance Finance ($ in millions) Aviation 166.8 137.3 135.4 (1.9) 261.9 Seaport 18.8 16.0 15.5 (0.5) 25.7 Real Estate 10.1 5.2 7.3 2.1 10.9 Corporate & CDD 4.4 10.5 11.7 1.2 12.0 Total 200.1 169.1 169.9 0.9 310.5 7 Aviation Division Q1 2012 Financial Performance Commission Briefing May 8, 2012 8 Aviation Business Highlights Airline activity: 2012 YTD enplanements up 2.7% from 2011 2012 YTD landed weight down 2.1% from 2011 Operating Expenses: 2012 YTD O&M expenses 9.3% below budget Non-airline NOI: 2012 YTD revenues up 1.9% from 2011, but 8.6% below budget Airline costs: Forecast 2012 CPE at $13.16 vs. budgeted $13.26 Debt service savings due to lower variable rate interest and debt refunding Capital program: Forecast 2012 capital spending 1.4% over budget 9 Activity Enplanements vs. Prior Year Landed Weight vs. Prior Year 1.28% 10% 6.72% 2% Growth Rate 1% Growth Rate 0% Jan Feb Mar 5% -1% 2.22% -2% -3% -1.85% -0.46% 0% -4% -5.47% Jan Feb Mar -5% -6% -5% 2011 2012 % 2012 2012 % Figures in 000's YTD YTD Variance Forecast Budget Variance Enplanements 3,509 3,604 2.7% 16,650 16,650 0.0% Landed Weight 4,525 4,429 -2.1% 20,444 20,444 0.0% International enplaned passengers saw greater year-over-year growth (3.7% vs. 2011 YTD) than domestic enplanements (2.6% vs. 2011 YTD) February statistics are skewed because of the leap day 10 Division Summary 2011 2012 2012 Budget Variance Change from 2011 $ in 000's Actual Forecast Budget $ % $ % Operating Revenues: Aeronautical 207,763 234,543 236,221 (1,677) - n/a -0.7% 26,781 12.9% Non-Aeronautical 142,959 149,618 149,531 - 88 n/a 0.1% 6,660 4.7% Total Operating Revenues 350,722 384,162 385,751 (1,590) -0.4% 33,440 9.5% Expenses: Operating Expenses 190,442 222,245 221,981 (264) -0.1% 31,803 16.7% Environmental Remediation Liability 1,428 3,096 3,096 - 0.0% 1,669 116.9% Total Operating Expenses 191,869 225,341 225,078 (264) -0.1% 33,472 17.4% Net Operating Income 158,853 158,820 160,674 (1,853) -1.2% (33) 0.0% Capital Spending 166,820 137,299 135,419 (1,880) -1.4% (29,521) -17.7% Key Measures Non-Aero NOI ($ in 000s) 84,173 76,058 75,982 76 0.1% (8,115) -9.6% Passenger Airline CPE 11.75 13.16 13.26 0.10 0.8% 1.41 12.0% Debt / Enplaned Passenger 161.46 152.2 152.2 - 0.0% (9.28) -5.7% Debt Service Coverage 1.47 1.36 1.34 0.02 1.8% (0.11) -7.2% Aeronautical revenues forecasted less than budget due to savings from lower variable rate interest and refunding of bonds. Non-Aeronautical revenues forecasted greater than budget due to higher energy and water sales from increased usage and volumes. Operating expenses forecasted greater than budget due to unbudgeted 2011 retro contractual increase in airfield security, which is offset by savings in outside services and telecommunications. 11 Q1 Operating Revenues 2011 YTD 2012 YTD 2012 YTD Budget Variance Change from 2011 $ in 000's Actual Actual Budget $ % $ % Revenues: Landing Fees 13,467 14,416 15,976 (1,560) -9.8% 949 7.1% Terminal Rental 31,523 33,460 33,242 217 0.7% 1,937 6.1% Fuel Hydrant * 129 129 129 (0) 0.0% (0) 0.0% Other Aero Revenues 3,601 3,629 3,666 (37) -1.0% 28 0.8% Total Aeronautical 48,719 51,634 53,013 (1,379) -2.6% 2,915 6.0% Public Parking 12,018 12,368 12,504 (136) -1.1% 349 2.9% Rental Cars 6,825 5,878 7,896 (2,018) -25.6% (947) -13.9% Customer Facility Charge (RCF) - 715 2,144 (1,429) -66.7% 715 n/a Ground Transportation 1,729 1,887 1,822 65 3.6% 159 9.2% Concessions 7,799 8,185 7,903 283 3.6% 386 5.0% Other Non-airline 4,538 4,487 4,421 66 1.5% (51) -1.1% Total Non-Aeronautical 32,909 33,520 36,690 (3,170) -8.6% 611 n/a 1.9% Total Revenues 81,628 85,154 89,703 (4,549) -5.1% 3,526 4.3% * 2011 non- cash Fuel Hydrant restated as non - operating revenues Landing fees are lower than budget 9.8% due to pending quarterly true-up not yet booked, 3.7% less actual landed weight than originally anticipated Public parking revenues 1% under budget mainly due to Passport program under $108K and garage under $66K Rental cars below budget due to $1.5M delayed RCF expenses, $300K concession revenues for MAG relief, and did not budget based on seasonality 12 Q1 Expense & NOI 2011 YTD 2012 YTD 2012 YTD Budget Variance Change from 2011 $ in 000's Actual Actual Budget $ % $ % Total Revenues 81,628 85,154 89,703 (4,549) -5.1% 3,526 4.3% Expenses: Salaries & Benefits 19,355 21,715 23,225 1,510 6.5% 2,359 12.2% Outside Services 3,926 4,688 6,830 2,142 31.4% 762 19.4% Supplies & Stock 1,417 1,557 1,112 (445) -40.0% 140 9.9% Utilities 3,563 3,595 3,396 (199) -5.9% 32 0.9% Other 1,394 1,825 2,288 462 20.2% 431 30.9% Baseline Airport Expenses 29,656 33,380 36,851 3,471 9.4% 3,725 12.6% Environmental Remediation Liability - - - - n/a - n/a Total Airport Expenses 29,656 33,380 36,851 3,471 9.4% 3,725 12.6% Corporate 7,005 7,935 8,269 334 4.0% 930 13.3% Police Costs 3,650 3,858 4,346 488 11.2% 208 5.7% Capital Development/Other Expenses 1,321 2,353 2,959 605- 20.5%n/a 1,032 - 78.1% Total Operating Expenses 41,631 47,526 52,425 4,899 9.3% 5,895 14.2% Net Operating Income 39,997 37,628 37,278 350 0.9% (2,369) -5.9% Major savings: Areas of overspending: Salaries and benefits $1.5M (delay of RCF opening, open positions) Deicer supplies $669k Delay in procurement of contracted services $2.2M Higher surface water discharge $93k Part 150 $129k Higher offsite electricity usage $186k Fire department supplies, equipment and medical exams $259k 13 Aeronautical Business 2011 2012 2012 Budget Variance Change from 2011 $ in 000's Actual Forecast Budget $ % $ % Lower Revenues requirement: variable rate Capital Costs 81,507 89,947 91,876 1,930 2.1% 8,440 10.4% interest and Operating Costs net Non-Aero 133,083 151,781 151,529 (252) -0.2% 18,698 14.0% Total Costs 214,590 241,728 243,405 1,677 0.7% 27,138 12.6% debt FIS Offset (7,000) (8,000) (8,000) - 0.0% (1,000) 14.3% refunding Other Offsets (15,417) (14,895) (14,895) - 0.0% 522 -3.4% resulted in Net Revenue Requirement 192,173 218,833 220,510 1,677 0.8% 26,660 13.9% $1.9 million in Other Aero Revenues 15,590 15,711 15,711 - 0.0% 121 0.8% Total Aero Revenues 207,763 234,543 236,221 1,677 0.7% 26,781 12.9% net debt Less: Non-passenger Airline Costs 15,098 15,392 15,392 - 0.0% 294 1.9% service Net Passenger Airline Costs 192,665 219,151 220,828 1,677 0.8% 26,486 13.7% savings 2011 2012 2012 Budget Variance Change from 2011 Actual Forecast Budget $ % $ % Cost Per Enplanement: Capital Costs / Enpl 4.97 5.40 5.52 0.12 2.1% 0.43 8.7% Operating Costs / Enpl 8.12 9.12 9.10 (0.02) -0.2% 1.00 12.3% Offsets (1.37) (1.38) (1.38) - 0.0% (0.01) 0.6% Other Aero Revenues 0.95 0.94 0.94 - 0.0% (0.01) -0.8% Non-passenger Airline Costs (0.92) (0.92) (0.92) - 0.0% (0.00) 0.4% Passenger Airline CPE 11.75 13.16 13.26 0.10 0.8% 1.41 12.0% 14 Non-Aeronautical Business 2011 2012 2012 Budget Variance Change from 2011 $ in 000's Actual Forecast Budget $ % $ % Revenues: Public Parking 49,996 52,480 52,480 - 0.0% 2,484 5.0% Other Non- Rental Cars 29,969 27,057 27,057 - 0.0% (2,912) -9.7% Aeronautical Customer Facility Charge (RCF) 778 8,576 8,576 - 0.0% 7,799 1002.9% Ground Transportation 7,704 7,519 7,519 - 0.0% (185) -2.4% revenue is Concessions 35,404 35,659 35,659 - 0.0% 254 0.7% forecast to be Other 19,109 18,327 18,240 88 0.5% (781) -4.1% Total Revenues 142,959 149,618 149,531 88 0.1% 6,660 4.7% greater due to Operating Expense 59,544 74,626 74,639 13 0.0% 15,082 25.3% increased Share of terminal O&M 17,610 18,722 18,698 (24) -0.1% 1,112 6.3% energy and Less utility internal billing (18,369) (19,789) (19,789) - 0.0% (1,420) 7.7% water sales Net Operating & Maint 58,786 73,560 73,549 (11) 0.0% 14,774 25.1% Net Operating Income 84,173 76,058 75,982 76 0.1% (8,115) -9.6% 2011 2012 2012 Budget Variance Change from 2011 Actual Forecast Budget $ % $ % Revenues Per Enplanement Parking 3.05 3.15 3.15 - 0.0% 0.10 3.4% Rental Cars (net of CFCs) 1.83 1.63 1.63 - 0.0% (0.20) -11.1% Ground Transportation 0.47 0.45 0.45 - 0.0% (0.02) -3.9% Concessions 2.16 2.14 2.14 - 0.0% (0.02) -0.8% Other 1.21 1.62 1.61 0.01 0.3% 0.40 33.2% Total Revenues 8.72 8.99 8.98 0.01 0.1% 0.27 3.1% Primary Concessions Sales / Enpl 10.30 10.42 10.42 - 0.0% 0.12 1.2% 15 Net Cash Flow: NOI After Debt Service & Interest Income 2011 2012 2012 Budget Variance Change from 2011 $ in 000's Actual Forecast Budget $ % $ % Aeronautical Net Operating Income (NOI) 74,679 82,762 84,692 (1,930) -2.3% 8,083 10.8% Debt Service 71,096 75,796 77,726 1,930 2.5% 4,701 6.6% Aero NOI After Debt Service 3,584 6,966 6,966 0 0.0% 3,382 94.4% Non-Aeronautical Revenues 142,959 149,618 149,531 88 0.1% 6,660 4.7% Expenses (w/ Terminal Adj) 58,786 73,560 73,549 (11) 0.0% 14,774 25.1% Net Operating Income (NOI) 84,173 76,058 75,982 76 0.1% (8,115) -9.6% Debt Service 40,845 44,916 45,390 474 1.0% 4,071 10.0% Non-Aero NOI After Debt Service 43,328 31,142 30,592 551 1.8% (12,186) -28.1% Total Aviation Total Revenue 350,722 384,162 385,751 (1,590) -0.4% 33,440 9.5% Total O&M 191,869 225,341 225,078 (264) -0.1% 33,472 17.4% NOI 158,852 158,820 160,674 (1,853) -1.2% (32) 0.0% Debt Service 111,940 120,712 123,116 2,404 2.0% 8,772 7.8% NOI After Debt Service 46,912 38,108 37,557 551 1.5% (8,804) -18.8% Add ADF Interest Income 4,771 4,460 3,771 689 18.3% (311) -6.5% Add Non-Operating TSA Grant 1,035 1,479 1,479 - 0.0% 445 43.0% Net Cash Flow after D/S & Interest Inc. 52,717 44,047 42,808 1,240 2.9% (8,670) -16.4% 16 Capital Expenses 2012 2012 Forecast/Budget Plan of $ in 000's YTD Actual Forecast Budget Variance % Finance Rental Car Fac. Construction 7,801 19,129 29,778 10,649 35.8% 54,114 8th Floor Weather Proofing 38 3,288 5,500 2,212 40.2% 10,482 FIMS Phase II 214 5,214 6,450 1,236 19.2% 4,214 Port-Owned Loading Bridge R&R 2 1,002 - (1,002) - Stage 2 Mech Energy Implement 8 1,058 - (1,058) - New Window Wall Ticket Zone 1 5 1,305 - (1,305) - Single Family Home Sound Insul 279 2,074 - (2,074) - SSAT HVAC,Lights,Ceiling Repl 21 2,521 - (2,521) - All Other 13,611 101,708 93,691 (8,017) 18.4% 193,116 Total Capital Expenses 21,979 137,299 135,419 (1,880) -1.4% 261,926 RCF savings have been identified as the project nears completion. Change orders have been submitted by the construction contractor and it is anticipated that many of these will be resolved in the Port's favor 8th Floor Weather Proofing contractor delayed first submittal by over three months due to other commitments. Construction is expected to begin in late April Scope of FIMS Phase II project has been reduced Loading Bridges, Stage 2 Mechanical Energy Implementation, New Window Wall Ticket Zone 1, Single Family Home Sound Insulation, SSAT HVAC projects were not anticipated in 2012 Plan of Finance 17 Seaport Division Q1 2012 Performance Report Commission Briefing May 8, 2012 Seaport Business Goals TEU volume was 476K, down 2% from Q1 YTD 2011. Full year forecasted volume is for 1,750K TEU's compared to budget of 2,000K TEU's. Grain volume was at 1.6 million metric tons up13.5% from 2011 YTD and 23% over 2012 YTD budget. Cruise season will commence on May 6th. Completed Major Work: East Marginal Way Grade Separation Pier 91 Fender Pile Replacement 19 Seaport Organizational Goals Environmental Stewardship 48% of frequent calls meeting Northwest Ports Clean Airs Standards target. Agreed Order for environmental remediation at Terminal 91 approved for execution. Seattle Comprehensive Plan - City Council approved Port Element into the Comprehensive Plan. Regional Transportation Closely engaged in mobility management for south harbor road construction projects and detour routes. 20 Seaport Q1 YTD Operating Results 2011 YTD 2012 YTD 2012 YTD 2012 Bud Var $ in 000's Actual Actual Budget $ % Operating Revenue 22,286 26,115 21,290 4,825 23% Security Grants 40 816 767 49 6% Total Revenues 22,326 26,931 22,057 4,874 22% Seaport Expenses (excl env srvs) 2,471 2,710 3,204 494 15% Environmental Services 361 302 338 36 11% Maintenance Expenses 980 1,185 1,323 138 10% P69 Facilities Expenses 90 130 129 (1) -1% Other RE Expenses 49 86 78 (9) -11% CDD Expenses 1,279 651 1,032 381 37% Police Expenses 826 948 1,068 120 11% Corporate Expenses 2,373 2,718 2,889 171 6% Security Grant Expense 69 821 815 (6) -1% Envir Remed Liability 0 0 0 0 NA Total Expenses 8,498 9,550 10,874 1,324 12% Net Operating Income 13,827 17,381 11,183 6,198 55% Note: $3,068K of the revenue variance is the result of the refunding of the T18 Special Facility Bonds in December 2011. 21 Seaport Division Key Variances Revenue Detail ($'s in Thousands) Q1 YTD Business Unit Variance to Budget Better (Worse) Containers* $4,051 Grain $295 Industrial Properties $332 Cruise ($13) Docks $159 Security Grants $49 Total $4,874 Note*: $3,068K of the Container revenue variance is the result of the refunding of the T18 Special Facility Bonds in December 2011 22 Seaport Division Key Variances Expense Detail ($'s in Thousands) Q1 YTD Expenses Variance to Budget Better (Worse) Outside Services (Seaport) $433 CDD $381 Corporate $291 Maintenance $138 All Other $81 Total Expense $1,324 23 Seaport Business Groups NOI Before Depreciation ($'s in Millions) Q1 YTD Variance to Budget Actual NOI Better (Worse) Containers* $15.5 $5.0 Grain $1.5 $ .3 Sea Industrial Properties $2.0 $.5 Cruise ($1.3) $.0 Docks ($ .1) $ .3 Security ($ .2) $.1 Envir Grants/Liability Exp $ .0 $ .0 Total Seaport $17.4 $6.2 Note*: $3.1 million of the Containers variance is the result of the refunding of the T18 Special Facility Bonds in December 2011 24 Seaport Full Year Operating Forecast 2011 2012 2012 2012 Bud Var $ in 000's Actual Forecast Budget $ % Operating Revenue 98,910 109,107 96,980 12,127 13% Security Grants 394 1,598 1,598 0 0% Total Revenues 99,304 110,705 98,578 12,127 12% Seaport Expenses (excl env srvs) 12,880 15,236 15,236 0 0% Environmental Services 2,121 2,289 2,289 0 0% Maintenance Expenses 4,607 5,817 5,817 0 0% P69 Facilities Expenses 506 531 531 0 0% Other RE Expenses 180 300 300 0 0% CDD Expenses 3,539 4,388 4,388 0 0% Police Expenses 3,578 4,167 4,167 0 0% Corporate Expenses 11,177 12,332 12,332 0 0% Security Grant Expense 481 1,476 1,476 0 0% Envir Remed Liability (633) 0 0 0 NA Total Expenses 38,437 46,536 46,536 0 0% Net Operating Income 60,867 64,169 52,042 12,127 23% Note*: The forecasted $12,127K revenue variance is the result of the refunding of the T18 Special Facility Bonds in December 2011. 25 Seaport Capital 2012 Estimated Approved Variance Est. Act. Plan of Actual Budget to as % of Finance Budget App. Bud $16.0 $15.5 $.5 104% $25.7 26 Real Estate Division Q1 2012 Performance Report Commission Briefing May 8, 2012 Real Estate 1st Quarter Key Events Full Year Net Operating Income forecasted to meet budget. The 84th Annual Blessing of the Fleet was held at Fishermen's Terminal in March. Eastside Rail Corridor Final terms agreed to with City of Kirkland for closing in April. Relocating ICT Development group from Pier 66 to P69 freeing up 2,200 square feet of leaseable space. Lifesaving water rescue at Pier 66 by staff from Harbor Services, Marine Maintenance, and Portfolio Management. 28 Real Estate Business Goals Provide Compelling Value and Asset Utilization Occupancy Rates: Commercial property at 90% occupancy, at target of 90% and above 2012 Q1 Seattle market average of 85%. Activity at Bell Harbor International Conference Center below Budget. FT/Marina Occupancy: Fishermen's Terminal and Maritime Industrial Center at 78% YTD average occupancy, below target of 89%. Recreational Marinas at 91%, below target of 94%. 29 Real Estate Division Q1 Operating Results 2011 YTD 2012 YTD 2012 YTD 2012 Bud Var $ in 000's Actual Actual Budget $ % Revenue 5,330 5,414 5,442 -29 -1% BHICC & WTC Revenue 1,804 2,036 2,104 -68 -3% Total Revenue 7,134 7,450 7,546 -97 -1% Real Estate Exp(excl Maint,P69,Conf) 2,302 2,471 2,406 -65 -3% Real Estate BHICC & WTC 1,640 1,619 1,732 112 6% Eastside Rail Corridor 18 24 48 24 51% Maintenance Expenses 1,401 1,585 2,248 663 29% P69 Facilities Expenses 26 48 48 0 -1% Seaport Expenses 181 239 255 17 7% CDD Expenses 208 241 310 69 22% Police Expenses 300 328 370 42 11% Corporate Expenses 1,079 1,082 1,207 125 10% Envir Remed Liability 0 0 0 0 NA Total Expense 7,157 7,638 8,624 986 11% Net Operating Income -22 -188 -1,077 889 83% 30 Real Estate Division Q1 Key Variances Revenue Detail ($'s in Thousands) 2012 Year to Date Variance to Budget Business Unit Better (Worse) Recreational Boating ($28) Fishing & Commercial ($50) Commercial Properties $1 Third Party Management ($80) RE Development & Planning $42 Eastside Rail $3 Facilities/Maintenance $15 Total ($97) 31 Real Estate Division Q1 Key Variances Expense Detail ($'s in Thousands) 2012 Year to Date Variance to Budget Expense Better (Worse) Maintenance $663 Corporate $167 RE Outside Services $48 Third Party Management (BHICC & WTC) $112 Litigated Damages ($120) All Other $116 Total Expense $986 32 Real Estate Business Groups NOI Before Depreciation ($'s in Thousands) Q1 YTD Variance to Budget Actual NOI Better (Worse) Recreational Boating $488 $236 Fishing & Commercial ($523) $169 Commercial & Third Party ($18) $322 RE Development & Planning ($67) $104 Eastside Rail ($68) $60 Total Real Estate ($188) $889 33 Real Estate Division Full Year Forecast 2011 2012 2012 2012 Bud Var $ in 000's Actual Forecast Budget $ % Revenue 22,071 22,338 22,389 -51 0% BHICC & WTC Revenue 9,498 10,012 10,012 0 0% Total Revenue 31,569 32,350 32,401 -51 0% Real Estate Exp(excl Maint,P69,Conf) 9,764 9,920 9,920 0 0% Real Estate BHICC & WTC 7,600 7,870 7,870 0 0% Eastside Rail Corridor 1,585 203 203 0 0% Maintenance Expenses 7,193 9,562 9,687 125 1% P69 Facilities Expenses 150 198 198 0 0% Seaport Expenses 1,248 1,408 1,408 0 0% CDD Expenses 917 1,266 1,266 0 0% Police Expenses 1,301 1,442 1,442 0 0% Corporate Expenses 5,018 5,229 5,229 0 0% Envir Remed Liability 7 0 0 0 NA Total Expense 34,784 37,099 37,224 125 0% Net Operating Income -3,215 -4,749 -4,823 74 2% 34 Real Estate Capital 2012 Estimated Approved Variance Est. Act. Plan of Actual Budget to as % of Finance Budget App. Bud $5.2 $7.3 $2.1 71% $10.9 35 Capital Development Division Q1 2012 Performance Report Commission Briefing May 8, 2012 CDD Business Events Asserted Port lead and close cooperation with Alaska Air Group on NorthSTAR project. Common use lounge opened March 1 for first Emirates flight, 5 months ahead of original schedule. Implemented Consensus Based Evaluation for RFP procurements. Beneficial Occupancy achieved for Rental Car Facility and Bus Maintenance Facility; SR 518 ramps opened for traffic. Ten homes in progress for the Noise Remedy Project. Construction Completion Report for the T-10 Interim Redevelopment has been issued to EPA. An emergency declaration was made to repair a major Transformer at T-46. In coordination with tenant, completed mobilization and initiated T- 18 Pile Cap Pilot Project. 37 Project Hard/Soft Costs 38 CDD Key Indicators Cost Growth During Construction 2010 Q2 YTD Update 39 Key Indicators continued Design Schedule Growth Initial Planned Actual Design Project Commission Construction Construction Schedule Authorized Start Contract Award Contract Award Growth of Design 1st Quarter 2012 FT NW Dock E. Fender System 23-Mar-10 12-Sep-10 18-Oct-10 20.8% Repl. FT South Wall Recon Phase IV 11-Aug-09 24-Aug-10 19-Oct-10 14.8% 2010 AIP Contract 2 28-Jul-09 16-Jul-10 16-Jul-10 0.0% 2011 AIP Contract 2 11-Aug-10 28-Mar-11 12-May-11 19.7% MT Southend Roof Replace 27-Apr-10 20-Apr-11 5-May-11 4.2% 40 Key Indicators continued Construction Schedule Growth Planned Actual Planned Actual Construction Project Substantial Substantial Construction Construction Schedule Completion of Completion of Contract Award Contract Award Growth Construction Construction 1st Quarter 2012 FT NW Dock E. Fender System 12-Sep-10 18-Oct-10 14-Jun-11 27-May-11 -7.5% Repl. FT South Wall Recon Phase IV 24-Aug-10 19-Oct-10 3-Aug-11 23-Aug-11 6.9% 2010 AIP Contract 2 16-Jul-10 16-Jul-10 13-Dec-10 30-Nov-11 234.7% 2011 AIP Contract 2 28-Mar-11 12-May-11 28-Oct-11 3-Feb-11 -158.0% MT Southend Roof Replace 20-Apr-11 5-May-11 1-Nov-11 1-Nov-11 0.0% 2009 Q4 YTD Update 41 CPO Procurement Time Procurement Schedule Total Time Receipt of Scope to Execution (Avg # Days) 2011 2012 Goods & Services 84 days 188 days Major Public Works 75 days 53 days Small Works 58 days 49 days Service Agreements *214 days 231days *Pulled out 1 non-urgent procurement that resulted in 2 contracts (averaged 450 days for each contract to be executed). 42 CDD Gross Operating Results 43 CDD Key Variances to Net Budget Variance to Q1 2012 Expenses Budget Budget YTD Var. F/(UNF) $ in 000's YTD Better (Worse) % Salaries and Benefits 7,285 434 6.0% Outside Services 1,576 743 47.2% Travel and Other 105 55 52.2% Telecommunications 32 20 61.5% Property Rentals 24 3 11.8% General Expenses 12 (194) (1,577.9%) All Other 247 352 142.4% Charges to Capital Projects (5,370) (411) 7.7% Total 3,911 1,002 25.6% 44 Corporate Q1 2012 Performance Report Commission Briefing May 8, 2012 Corporate Key Events Held kickoff outreach phase for Century Agenda Business and Community Leaders Breakfast. Submitted nomination for the Freedom Award for supporting the National Guard and the Reserve. Awarded Internship Employer of the Year by Seattle University. Refunded $640 million Revenue bonds for $85 million present value savings. Conducted the Industrial Development Corporation (IDC) Annual Meeting. 46 Corporate Key Metrics Conducted 14 stakeholder presentations plus four brownbag lunches for Port employees. Posted 70 job openings and received 2848 job applications. Provided orientation to 24 new employees. 21 employees participated in the Tuition Reimbursement Program. 97% participation rate in the health assessment. Responded to 89 public disclosure requests. Negotiated 2 labor contracts. Completed 5 internal audits. Handled 41 litigations and claims. 742 small businesses registered on new roster system. 47 Q1 Corporate Operating Results 2011 YTD 2012 YTD Budget Variance Change from 2011 $ in 000's Actual Actual Budget $ % $ % Total Revenues 242 98 38 60 159.5% (144) -59.5% Executive 352 382 425 43 10.1% 30 8.5% Commission 148 194 217 23 10.4% 47 31.7% Legal 512 567 631 64 10.1% 55 10.8% Risk Services 617 637 714 77 10.8% 20 3.2% Health & Safety Services 263 256 293 37 12.5% (7) -2.6% Public Affairs 1,253 1,270 1,462 192 13.1% 17 1.3% Human Resources & Development 1,040 1,188 1,234 46 3.7% 148 14.3% Labor Relations 208 247 242 (5) -2.1% 38 18.4% Information & Communications Technology 4,212 4,642 4,639 (3) -0.1% 430 10.2% Finance & Budget 348 376 380 4 1.1% 27 7.9% Accounting & Financial Reporting Services 1,314 1,500 1,610 110 6.8% 186 14.1% Internal Audit 256 278 294 16 5.4% 22 8.5% Office of Social Responsibility 194 359 349 (10) -3.0% 165 85.1% Police 4,880 5,219 5,783 564 9.8% 339 6.9% Contingency 44 3 100 97 97.2% (41) -93.5% Total Expenses 15,642 17,118 18,372 1,254 6.8% 1,476 9.4% Total Expenses were $1.25M or 6.8% below budget mainly due to some vacant positions, unfinalized labor contracts, and timing of spending. 48 Q1 Corporate Expense by Category 2011 YTD 2012 YTD Budget Variance Change from 2011 Operating Expenses ($ in '000) Actual Actual Budget $ % $ % Salaries & Benefits 8,318 8,744 8,956 212 2.4% 426 5.1% Wages & Benefits 4,499 4,566 5,175 609 11.8% 67 1.5% Payroll to Capital Projects 629 535 830 295 35.6% (94) -15.0% Equipment Expense 107 110 165 55 33.4% 2 2.0% Outside Services 1,617 2,016 2,278 263 11.5% 398 24.6% Travel & Other Employee Exps 356 495 616 121 19.6% 138 38.9% Workers' Compensation (2) 69 40 (29) -73.3% 72 3073.4% Insurance Expense 462 510 531 21 3.9% 48 10.5% Litigated Injuries & Damages 0 152 - (152) n/a 152 n/a Other 284 456 611 155 25.4% 172 60.5% Charge to Capital (629) (535) (830) (295) 35.6% 94 -15.0% Total 15,642 17,118 18,372 1,254 6.8% 1,476 9.4% Total Expenses were $1.48M higher than Q1 2011 due to higher Payroll Costs, Outside Services, Travel & Other Employee Expenses, Workers' Comp, and Litigations. Other Expenses include Contingencies. 49 Corporate Year End Forecast 2011 Year-End Projections $ in 000's Actual Forecast Budget Variance Explanations Total Revenues 1,559 151 151 - Unbudgeted Police grants Executive 1,487 1,539 1,539 - Commission 738 968 980 12 Miscellaneous savings Legal 2,975 2,898 2,901 3 Risk Services 2,614 2,899 2,959 60 Vacancies and lower insurance costs Health & Safety Services 1,053 1,057 1,060 2 Public Affairs 6,494 5,735 5,815 79 Vacant positions Human Resources & Development 4,921 5,479 5,484 5 Vacant position Labor Relations 941 998 961 (37) Less charges to capital for PLA Information & Communications Technology 19,132 20,194 20,194 - Finance & Budget 1,435 1,543 1,543 - Accounting & Financial Reporting Services 5,776 6,821 6,853 32 Vacant positions and other savings Internal Audit 1,080 1,495 1,496 1 Office of Social Responsibility 1,349 1,461 1,476 15 Vacant positions Police 21,154 22,557 22,574 17 Vacancies partially offset by litigation Contingency 105 700 700 - Total Expenses 71,418 76,345 76,535 190 Total Revenues are forecasting to be in line with the budget. Total Expenses are forecasting to be $190K below budget mainly due to some vacant positions. 50
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