7a Attach
ITEM NO.: 7a Report DATE OF MEETING: May 3, 2011 PORT OF SEATTLE 2011 Q1 PERFORMANCE REPORT AS OF MARCH 31, 2011 TABLE OF CONTENTS Page I. Portwide Performance Report 3-5 II. Aviation Division Report 6-11 III. Seaport Division Report 12-15 IV. Real Estate Division Report 16-19 V. Capital Development Division Report 20-22 VI. Corporate Professional & Technical Services 23-25 2 I. PORTWIDE PERFORMANCE REPORT 03/31/11 EXECUTIVE SUMMARY FINANCIAL SUMMARY The Port's total operating revenues for the first three months of 2011 were $113.3 million, $7.8 million below budget. Aeronautical revenues were $48.6 million, $5.7 million below budget mainly due to reduced debt service on variable rate bonds. Other operating revenues were $64.7 million, $2.1 million below budget primarily due to lower revenues from Public Parking, Rental Cars and Pass-Through Security Grants. Total operating expenses were $57.7 million, $14.1 million below budget mainly due to timing differences between when the items are paid and when budgeted and not necessarily cost savings. Operating income before depreciation was $55.6 million, $6.3 million above budget. Operating income after depreciation was $15.8 million, $6.6 million higher than budget. The Portwide capital spending is forecasted to be $248.2 million for the year, $38.7 million below the budgeted $286.9 million. Operating Summary The operating activities for the first three months of 2011 were strong. At the Airport, enplanements and landed weight were 4.6% and 3.1% higher than the same period in 2010, respectively. As the 2011 Budget assumes 0.5% increase in enplaned passengers and a 1.5% increase of landed weight over 2010 actuals, we are reviewing for possible forecast adjustment. For the Seaport division, TEUs were 7.9% higher than budget and 8.2% above 2010 levels through March. While Grain volumes were 2.8% below 2010 levels for the same time period, it was still 8.1% higher than budget. For the Real Estate division, occupancy levels at Commercial Properties were at 89%, slightly higher than the 88% in the first quarter of 2010. Shilshole Bay Marina occupancy rate was 94.7%, compared to 92.9% for the same period in 2010. Moorage occupancies at Fishermen's Terminal were 87.0%, lower than the 94.2% in 2010 but it was in line with budgeted rate. Key Business Events As a part of the Centennial celebration, we published the Port's Centennial website with map and timeline, the interactive history of the Port of Seattle and distributed the Centennial documentary, "Voices of the Port," which has been shown on several cable stations in King County, shown to local chambers of commerce at a reception and distributed to Port employees. Other Centennial events including Chamber Reception, brown bags, Video Contest for Schools, and Know the Port by Bike event in June. We also highlighted the port's centennial celebration and website to multiple media partners, gaining ongoing positive coverage in several outlets. In addition, we hosted a live broadcast of CNBC morning shows Squawk Box and Squawk on the Street. Broadcasts featured the Port as primary driver of regional economic recovery. On the business side, Disney Cruise Lines announced they would bring a new homeport vessel to the Seattle harbor in 2012 and we signed the letter of intent with potential tenant for 18-acre City of SeaTac site. On the environmental front, we continued to implement the Northwest Ports Clean Air Strategy, there were 82 participating calls made for the At-Berth Clean Fuels Vessel Incentive Program (ABC Program) in the first quarter and 276 pre-1994 drayage trucks having been taken off the road under the Scrappage and Retrofits for Air in Puget Sound program (ScRAPS Program) since the inception of the program. We also issued Limited Tax General Obligation Bonds in the principal amount of $104 million for the purpose of refinancing capital improvements to Port facilities and financing Port activities and costs of issuance. Major Capital Projects We completed a number of capital projects in the first quarter of 2011. Construction completed and beneficial occupancy obtained for the Terminal 18 South Fender Replacement, Phase 1 of the Fender Damage Repair, North Harbor Island Mooring Dolphins, and Terminal 5 Maintenance Dredging Phase I. We also began construction on Bus Maintenance Facility, which is critical path item for opening of new Rental Car Facility in 2012. In addition, construction has started on the replacement of central seawall section at Maritime Industrial Center, final phase of the South Wall seawall reconstruction, installation of new fender system on east half of Northwest Dock, and Northwest Dock Fender System Replacement at Fishermen's Terminal. Construction on the East Marginal Way Grade Separation project continued and it was 75% complete at the end of the first quarter. 3 I. PORTWIDE PERFORMANCE REPORT 03/31/11 INCOME STATEMENT Report: Income Statement As of Date: 2011-03-31 2010 2011 2011 2011 Bud Var Variance from 2010 $ in 000's Actual Actual Budget $ % $ % Revenues: Aviation 82,101 83,564 90,328 (6,764) -7.5% 1,463 1.8% Seaport 20,505 22,172 23,430 (1,258) -5.4% 1,666 8.1% Real Estate 6,844 7,288 7,180 108 1.5% 445 6.5% Capital Development - 65 - 65 0.0% 65 n/a Corporate 95 242 159 83 52.6% 147 154.7% Total Revenues 109,545 113,331 121,097 (7,766) -6.4% 3,786 3.5% Operating & Maintenance: Aviation 27,263 29,656 35,166 5,510 15.7% (2,392) -8.8% Seaport 2,770 3,083 6,167 3,084 50.0% (313) -11.3% Real Estate 6,590 6,914 7,990 1,077 13.5% (324) -4.9% Capital Development 1,561 2,440 3,620 1,180 32.6% (878) -56.3% Corporate 14,629 15,642 18,886 3,244 17.2% (1,013) -6.9% Total O&M Costs 52,813 57,734 71,828 14,094 19.6% (4,921) -9.3% Operating Income Before Depreciation 56,731 55,597 49,269 6,328 12.8% (1,135) -2.0% Depreciation 40,189 39,834 40,074 239 0.6% 355 0.9% Operating Income after Depreciation 16,542 15,762 9,195 6,567 71.4% (780) -4.7% IMPORTANT NOTE: All the numbers in the table above are on an Org basis while the actual numbers for the operating divisions are on a Subclass basis. 4 I. PORTWIDE PERFORMANCE REPORT 03/31/11 KEY PERFORMANCE METRICS 2010 YTD 2011 YTD 2010 2011 2011 Forecast/Budget Actual Actual Actual Forecast Budget Var. Var. % Enplanements (in 000's) 3,355 3,509 15,773 15,845 15,845 - 0.0% Landed Weight (lbs in 000's) 4,387 4,525 19,786 20,089 20,089 - 0.0% Passenger CPE (in $) n/a n/a 11.63 12.76 12.76 - 0.0% Container Volume (TEU's in 000's) 448 485 2,140 1,800 1,800 - 0.0% Grain Volume (metric tons in 000's) 1,450 1,409 5,491 5,500 5,500 - 0.0% Cruise Passenger (in 000's) - - 932 807 796 11 1.4% Commercial Property Occupancy 88% 89% 88% 89% 90% (0) -1.1% Shilshole Bay Marina Occupancy 92.9% 94.7% 94.4% 94.3% 91.2% 3.1% 3.3% Fishermen's Terminal Occupancy 94.2% 87.0% 87.1% 82.1% 82.0% 0.1% 0.1% CAPITAL SPENDING RESULTS 2011 2011 Plan of Division Q1 Act. Q2 Fcst Q3 Fcst Q4 Fcst Forecast Budget Var. $ Finance ($ in millions) Aviation 30.2 44.7 50.5 61.4 186.7 223.7 37.0 231.4 Seaport 4.6 7.4 10.0 10.0 31.8 34.0 2.1 29.5 Real Estate 3.0 6.0 4.1 3.0 16.1 16.3 0.3 15.4 Corporate 0.9 5.0 4.3 3.3 13.5 12.9 -0.6 12.1 Total 38.6 63.0 68.9 77.7 248.2 286.9 38.7 288.3 PORTWIDE INVESTMENT PORTFOLIO The investment portfolio for the first quarter of 2011 earned 1.62% against our benchmark (The Bank of America Merrill Lynch 3-year Treasury/Agency Index) of 0.77%. For the past twelve months, the portfolio has earned 1.98% against the benchmark of 0.65%. Since the Port became its own Treasurer in 2002, the Port's portfolio lifeto-date has earned 3.53% against our benchmark of 2.60%. 5 II. AVIATION DIVISION PERFORMANCE REPORT 03/31/11 FINANCIAL SUMMARY 2009 2010 2011 2011 Forecast/Budget $ in 000's Actual Actual Forecast Budget Var $ Var % Operating Revenues Aeronautical 182,534 198,329 217,181 217,200 (19) 0.0% Non-Aeronautical 137,348 135,418 145,783 144,965 819 0.6% Other 8,359 8,426 8,353 8,353 - 0.0% Operating Revenues 328,241 342,173 371,317 370,517 800 0.2% Operating Expenses 175,482 177,871 199,108 199,180 72 0.0% Environmental Remediation Liability 1,991 3,271 1,771 1,771 - 0.0% VSP, HR10 & Unemployment 1,196 - - - - n/a OPEB Reversal (4,016) - - - - n/a Total Operating Expenses 174,654 181,142 200,879 200,951 72 0.0% Net Operating Income 153,587 161,031 170,439 169,567 872 0.5% Capital Expenditures 191,479 183,578 186,743 223,746 37,003 16.5% We are forecasting aeronautical revenues to be $19K less than budgeted due to allocated cost savings from open positions. An overage of $819K in non-airline revenues is forecasted due to better than budgeted advertising revenue and unbudgeted grant revenue as a reimbursement for planning work. Operating expense is forecasted to be $72K favorable versus budget mainly due to open positions. $186.7 million is forecasted to be spent on capital projects in 2011, 83.5% of the 2011 budget of $223.75 million. A. BUSINESS EVENTS Terminal realignment in progress. Sea-Tac Airport handled numerous snow/ice events in the first quarter. In addition to Rental Car Facility construction, building of the Bus Maintenance Facility is now underway. B. KEY PERFORMANCE INDICATORS 2010 2011 % 2010 2011 % Figures in 000's Q1 Q1 Variance Actual Forecast Variance Enplanements 3,355 3,509 4.6% 15,773 15,845 0.5% Landed Weight 4,387 4,525 3.1% 19,786 20,089 1.5% Enplanements vs. Prior Year Landed Weight vs. Prior Year 10% 4% 3.62% Growth Rate 4% 3.11% 3% 2.63% 3% 3.44% 2% 5% 3.91% 6.10% Growth Rate 2% 1% 1% 0% 0% Jan Feb Mar Jan Feb Mar International enplaned passengers saw greater year-over-year growth (5% vs. Q1 2010) than domestic enplanements (4.5% vs. Q1 2010). Year-to-date cargo landed weight makes up 6.98% of total landed weight, as opposed to 7.58% of total landed weight at this point in 2010. The 2011 Budget assumes 0.5% increase in enplaned passengers and a 1.5% increase of landed weight over 2010 actuals. 6 II. AVIATION DIVISION PERFORMANCE REPORT 03/31/11 Key Performance Measures 2009 2010 2011 2011 Forecast/Budget Actual Actual Forecast Budget Var $ Var % Non-Aero NOI ($ in 000's) 81,159 78,203 82,081 81,209 872 1.1% Passenger Airline CPE 10.92 11.63 12.76 12.76 0.00 0.0% Total Operating Cost / Enpl 11.19 11.48 12.68 12.68 0.00 0.0% Debt Service Coverage 1.32 1.48 1.41 1.40 0.01 0.7% CPE is forecasted currently to be nearly identical to the budgeted amount of $12.76. C. OPERATING RESULTS Year-to-date Revenue and Expense 2009 YTD 2010 YTD 2011 YTD 2011 YTD Actual/Budget $ in 000's Actual Actual Actual Budget Var $ Var % Revenues Aeronautical 48,155 49,178 48,590 54,275 (5,685) -10.5% Non-Aeronautical 33,938 30,794 32,909 33,965 (1,055) -3.1% Other 2,128 2,128 2,127 2,088 38 1.8% Total Operating Revenues 84,221 82,100 83,627 90,328 (6,702) -7.4% Expenses Salaries & Benefits 19,991 18,351 19,355 20,667 1,311 6.3% Outside Services 3,951 3,579 3,926 6,739 2,813 41.7% Utilities 4,047 2,938 3,563 3,550 (12) -0.4% Supplies & Stock 1,252 864 1,417 1,025 (392) -38.2% Other 655 1,531 1,394 3,185 1,791 56.2% Total Airport Expenses 29,897 27,263 29,656 35,166 5,510 15.7% Corporate 6,846 6,889 7,005 8,351 1,346 16.1% Police Costs 3,048 3,222 3,650 4,145 495 12.0% Capital Development/Other Expenses 1,066 1,387 1,321 2,691 1,370 50.9% Total Operating Expenses (excl. Env Res) 40,858 38,762 41,631 50,352 8,721 17.3% Environmental Remediation - - - - - n/a Total Operating Expenses 40,858 38,762 41,631 50,352 8,721 17.3% Net Operating Income 43,363 43,338 41,995 39,976 2,019 5.1% Aeronautical revenues are less than budgeted YTD by $5.7 million due to seasonality from landing fee/terminal rent budgets. Non-aeronautical revenues are less than budgeted due to less growth in long-term parking transactions and decreased rates in rental cars despite transactions increasing YTD. Year-to-date expenses are under budget due to elevator/escalator invoices $618K, emergency generator invoice $287K, ramp tower invoice $141K, Airport Council membership $81K, incorrect budgeted spreads of Maintenance wages & benefits $400K, and FTEs vacancies $250K. 7 II. AVIATION DIVISION PERFORMANCE REPORT 03/31/11 Division Summary 2009 2010 2011 2011 Forecast/Budget $ in 000's Actual Actual Forecast Budget Var $ Var % Total Operating Revenues 328,241 342,173 371,317 370,517 800 0.2% Operating Expenses Salaries & Benefits 80,804 76,036 82,272 82,363 91 0.1% Outside Services 21,509 22,519 26,758 26,758 - 0.0% Utilities 13,209 11,381 12,576 12,576 - 0.0% VSP, HR10 & Unemployment Savings 1,196 - - - - n/a OPEB Reversal (4,016) - - - - n/a Environmental Remediation Liability 1,991 3,271 1,771 1,771 - 0.0% Other Expenses 8,183 13,275 16,146 16,107 (39) -0.2% Baseline Airport Expenses 122,877 126,481 139,503 139,575 72 0.1% Corporate Expenses 31,181 32,558 34,043 34,043 - 0.0% Police Expenses 14,461 14,317 16,389 16,389 Capital Development/Other Expenses 6,135 7,785 10,944 10,944 0 0.0% Total Operating Expenses 174,654 181,142 200,879 200,951 72 0.0% Net Operating Income 153,587 161,031 170,439 169,567 872 0.5% Depreciation Expense 117,731 119,538 118,418 118,418 - 0.0% Non-Operating Rev/(Exp) Grants & Donations Revenues 74,323 30,040 28,990 28,990 - 0.0% Passenger Facility Charges 59,689 59,744 61,320 61,320 - 0.0% Customer Facility Charges 21,866 23,243 22,237 22,237 - 0.0% Other Non-operating Rev/(Exp) (109,398) (122,549) (125,464) (125,464) - 0.0% Total Non-Operating Rev/(Exp) 46,481 (9,522) (12,918) (12,918) - 0.0% Total Revenue Over Expense 82,337 31,971 39,103 38,231 872 2.3% Operating revenues are forecasted to be $800K favorable overall due to unbudgeted grant revenue and advertising revenue. Operating expense is forecast at $72K favorable due to savings from open positions. 8 II. AVIATION DIVISION PERFORMANCE REPORT 03/31/11 Aeronautical Business Unit Summary 2009 2010 2011 2011 Forecast/Budget $ in 000's Actual Actual Forecast Budget Var $ Var % Revenues requirement: Capital Costs 72,013 82,083 87,111 87,111 - 0.0% Operating Costs net Non-Aero 118,456 122,985 137,176 137,195 (19) 0.0% Total Costs 190,469 205,067 224,287 224,305 (19) 0.0% FIS Offset (5,250) (7,000) (7,000) (7,000) - 0.0% Other Offsets (16,441) (14,825) (14,821) (14,821) - 0.0% Net Revenue Requirement 168,778 183,243 202,466 202,485 (19) 0.0% Other Aero Revenues 13,757 15,087 14,715 14,715 - 0.0% Total Aero Revenues 182,534 198,329 217,181 217,200 (19) 0.0% Less: Non-passenger Airline Costs 12,074 14,885 15,066 15,066 - 0.0% Net Passenger Airline Costs 170,460 183,444 202,115 202,133 (19) 0.0% 2009 2010 2011 2011 Forecast/Budget Actual Actual Forecast Budget Var $ Var % Cost Per Enplanement: Capital Costs / Enpl 4.61 5.20 5.50 5.50 - 0.0% Operating Costs / Enpl 7.59 7.80 8.66 8.66 (0.00) 0.0% Offsets (1.39) (1.38) (1.38) (1.38) - 0.0% Other Aero Revenues 0.88 0.96 0.93 0.93 - 0.0% Non-passenger Airline Costs (0.77) (0.94) (0.95) (0.95) - 0.0% Passenger Airline CPE 10.92 11.63 12.76 12.76 (0.00) 0.0% We currently do not forecast any change to debt service payments. Operating costs were $19K lower due to cost savings from open positions and lease savings from the purchase of a previously-leased plotter in 2010. 9 II. AVIATION DIVISION PERFORMANCE REPORT 03/31/11 Non-Aero Business Unit Summary 2009 2010 2011 2011 Forecast/Budget $ in 000's Actual Actual Forecast Budget Var $ Var % Revenues: Public Parking 49,689 49,416 52,847 52,847 - 0.0% Rental Cars 33,320 30,309 33,833 33,833 - 0.0% Concessions 33,473 33,765 32,859 32,640 219 0.7% Other 20,865 21,929 26,244 25,644 600 2.3% Total Revenues 137,348 135,418 145,783 144,965 819 0.6% Operating Expense 55,916 54,743 64,352 64,397 45 0.1% Share of terminal O&M 17,011 16,935 17,721 17,729 8 0.0% Less utility internal billing (16,738) (14,464) (18,370) (18,370) - 0.0% Net Operating & Maint 56,189 57,215 63,703 63,756 53 0.1% Net Operating Income 81,159 78,203 82,081 81,209 872 1.1% 2009 2010 2011 2011 Forecast/Budget Actual Actual Forecast Budget Var $ Var % Revenues Per Enplanement Parking 3.18 3.13 3.34 3.34 0.00 0.0% Rental Car 2.13 1.92 2.14 2.14 0.00 0.0% Concessions 2.14 2.14 2.07 2.06 0.01 0.7% Other 1.34 1.39 1.66 1.62 0.04 2.3% Total Revenues 8.80 8.59 9.20 9.15 0.05 0.6% Primary Concessions Sales / Enpl 9.66 9.99 10.12 10.12 0.00 0.0% Public Parking and Rental Car revenues will be analyzed in Q2 for possible forecast revisions. Concession revenues are forecasted $219K favorable to budget due to an increase in janitorial monthly rates and advertising revenue from Google partnership. Forecasting an increase of $600K in Other revenues due to anticipated grant reimbursement for Sound Transit work. Concessions primary sales per enplaned passenger was $10.17 in March. Q1 2011 SPE up 7% from Q1 2010. 10 II. AVIATION DIVISION PERFORMANCE REPORT 03/31/11 Net Cash Flow: NOI after Debt Service and Interest Income 2009 2010 2011 2011 Forecast/Budget $ in 000's Actual Actual Forecast Budget Var $ Var % Aeronautical Net Operating Income (NOI) 65,915 74,402 78,661 78,661 (0) 0.0% Debt Service 68,767 73,080 76,700 76,700 - 0.0% NOI After Debt Service (2,851) 1,323 1,961 1,961 (0) 0.0% Non-Aeronautical Net Operating Income (NOI) 81,159 78,203 82,081 81,209 872 1.1% Debt Service 39,241 41,752 42,189 42,189 - 0.0% NOI After Debt Service 41,917 36,451 39,892 39,020 872 2.2% Fuel Hydrant Revenue 8,359 8,426 8,353 8,353 - 0.0% Total Aviation NOI 155,433 161,031 169,095 168,223 872 0.5% Debt Service 108,008 114,831 118,889 118,889 - 0.0% NOI After Debt Service 47,425 46,200 50,206 49,334 872 1.8% Add ADF Interest Income 8,853 6,297 4,549 4,167 382 9.2% Less Non-Cash Fuel Hydrant Revenue (7,845) (7,912) (7,839) (7,839) - 0.0% Net Cash Flow after D/S & Interest Inc. 48,433 44,585 46,916 45,663 1,254 2.7% D. CAPITAL SPENDING RESULTS 2011 2011 Forecast/Budget Plan of $ in 000's YTD Actual Forecast Budget Variance % Finance Rental Car Facility Construction 23,179 79,570 97,488 17,918 18.4% 98,616 Central Plant Preconditioned Air 981 13,981 20,000 6,019 30.1% 8,000 Airfield Pavement Replacement 120 3,370 10,500 7,130 67.9% 10,500 Parking System Replacement 186 7,648 9,137 1,489 16.3% 8,994 Terminal Escalators Modernization 180 6,075 8,955 2,880 32.2% 10,000 Aircraft RON Parking USPS Site 45 2,645 5,050 2,405 47.6% 5,661 All Other 5,496 73,454 72,616 (838) -1.2% 89,637 Total 30,187 186,743 223,746 37,003 16.5% 231,408 Off-site Road Improvements and Bus Maintenance Facility contractors have gotten off to a very slow start. Soft costs are also running below forecast for Rental Car Facility. Site work for PC Air was expected to begin in 4th quarter 2010 but didn't commence until 1st quarter 2011. Project completion date is not expected to be impacted. Amount originally budgeted for Airfield Pavement Replacement project was not needed for the scope of the 2011 pavement replacement. 11 III. SEAPORT DIVISION PERFORMANCE REPORT 03/31/11 1 FINANCIAL SUMMARY 2010 2011 2011 Budget $ in 000's Actual Forecast Budget Var $ Var % Operating Revenue 96,060 94,972 94,972 0 0% Security Grants 1,791 3,415 3,415 0 0% Total Revenues 97,850 98,387 98,387 0 0% Total Operating Expenses 39,321 47,108 47,108 0 0% Net Operating Income 58,530 51,280 51,280 0 0% Capital Expenditures 11,172 31,847 33,953 2,106 6% Total Seaport revenues were ($1,163K) unfavorable for the 1st quarter due to an unfavorable timing difference in Security Grant revenue ($1,805K) partially offset by Operating Revenue exceeding budget by $642K. Operating Revenues were favorable to budget due to higher crane rent and grain revenue both resulting from higher volumes. Seaport is forecasting full year revenues to be on budget. Total Operating Expenses were $3,702K favorable due to delays in starting Security Grant projects $1,800K, lower corporate expenses, lower CDD allocations and lower Outside Services due to timing. Seaport is forecasting full year expenses to be on budget. Forecasted Net Operating Income for 2011 is estimated to be equal to the 2011 Budget and ($7,250K) less than 2010 full year Actual Net Operating Income. The year-to-year change is driven by higher Operating Expense in 2011 Budget and Forecast. As of the end of the 1st Quarter, total capital spending for 2011 is projected to be $31.8M or 94% of the Approved Annual Budget. A. BUSINESS EVENTS TEU volumes for Seattle Harbor are up 7.9% as of March 31, 2011 compared to the same period in 2010. Total YTD 2011 volume is 485K TEU's. Consolidated West Coast Port results for 1st Quarter of 2011 show an overall increase in TEU volume of 8.7% compared to volumes in 2010. TEU Volume (in 000's) 2011 2010 % change Long Beach 1,346 1,265 6.4% Los Angeles 1,816 1,649 10.2% Oakland 556 500 11.2% Portland 49 39 25.1% Prince Rupert 65 77 -14.9% Seattle 485 450 7.9% Tacoma 352 324 8.8% Vancouver 577 525 9.9% West Coast - Total: 5,246 4,827 8.7% Grain vessels shipped 1,409K metric tons of grain through Terminal 86 in the 1st Quarter 2011. Amount is (3%) below 2010 grain volumes of 1,450K metric tons. 2011 actual volume is 8% higher than 2010 budget volume. Disney Cruise Lines announced they would bring a new homeport vessel to the Seattle harbor in 2012. Implementation of the Northwest Ports Clean Air Strategy continued: At-Berth Clean Fuels Vessel Incentive Program (ABC Program), 82 participating calls were made in the first quarter. Under the Scrappage and Retrofits for Air in Puget Sound program (ScRAPS Program) 276 pre-1994 drayage trucks have been taken off the road since the inception of the program. 12 III. SEAPORT DIVISION PERFORMANCE REPORT 03/31/11 1 B. KEY INDICATORS Container Volume TEU's in 000's Grain Volume Metric Tons in 000's Cruise Passengers in 000's Net Operating Income Before Depreciation By Business 2010 2011 2011 2011 Bud Var Change from 2010 $ in 000's Actual Actual Budget $ % $ % Containers 11,757 12,372 10,968 1,404 13% 615 5% Grain 1,332 1,311 1,124 187 17% (21) -2% Seaport Industrial Props 1,891 1,569 1,188 381 32% (322) -17% Cruise (912) (885) (1,242) 357 29% 27 3% Docks (405) (332) (436) 104 24% 73 18% Security (332) (198) (317) 118 37% 134 40% Env Grants/Remed Liab/Oth 0 (13) 0 (13) NA (13) NA Total Seaport 13,332 13,825 11,285 2,539 23% 493 4% 13 III. SEAPORT DIVISION PERFORMANCE REPORT 03/31/11 1 C. OPERATING RESULTS 2010 YTD 2011 Year-to-Date 2011 Bud Var Year-End Projections $ in 000's Actual Actual Budget $ % Budget Forecast Variance Operating Revenue 20,557 22,286 21,644 642 3% 94,972 94,972 0 Security Grants 8 40 1,845 (1,805) -98% 3,415 3,415 0 Total Revenue 20,565 22,326 23,489 (1,163) -5% 98,387 98,387 0 Direct Expenses 3,778 4,990 5,667 677 12% 24,081 26,381 (2,300) Security Grant Expense 29 69 1,870 1,800 96% 3,451 3,451 0 Environmental Remed Lia Exp 0 0 0 0 NA 500 500 0 Divisional Allocations 573 185 568 383 67% 2,511 211 2,300 Corporate Allocations 2,852 3,257 4,099 842 21% 16,565 16,565 0 Total Expense 7,233 8,501 12,203 3,702 30% 47,108 47,108 0 NOI Before Depreciation 13,332 13,825 11,285 2,539 23% 51,280 51,280 0 Depreciation 7,748 7,848 7,894 46 1% 31,898 31,898 0 NOI After Depreciation 5,583 5,977 3,391 2,585 76% 19,381 19,381 0 Seaport revenues were ($1,163K) unfavorable to budget. Key variances are as follows: Seaport Leasing & Asset Management - favorable $502K Containers $539K favorable. Crane Rent Revenue $443K favorable due to higher volumes and related crane usage at Terminal 5 and Terminal 18. Intermodal Revenue $30K favorable due to higher Terminal 5 intermodal volumes. Miscellaneous Revenue $72K favorable due to more maintenance reimbursable work performed than budgeted. Grain $105K favorable due to actual grain volume exceeding budget by 8%. Seaport Industrial Properties ($141K) unfavorable due to lower than anticipated liquid bulk volumes at the Terminal 18 facility, lower utility sales revenue and related expense at T91, and due to continued vacancy within Building 2 at Terminal 106. Cruise and Maritime Operations - unfavorable ($1,665K) Cruise $21K favorable primarily due to actual 2010 "Savings Rent" in excess of 2010 year-end accrual. Docks $118K favorable primarily due to higher than anticipated security fee revenue from Terminal 91 customers. Security Grants $1,805K unfavorable due to Q1 Round 7 pass-through grant activity being less than budgeted. Examples of 3rd party projects planned for Q1 were for the Port of Everett and the Seattle Fire Department. See offsetting expense variance below. Seaport expenses were $3,702K favorable to budget. Key variances: Security Grant Expenses favorable $1,800K due to Round 7 pass-through grant activity being delayed. Outside Services (excluding Corporate and Security Grants) were favorable $381K due to projects and programs with later actual timing or payments than budgeted including Environmental Services stormwater and air programs $125K, Planning T91 Option and Transportation studies $30K, Seaport Division Admin CTQI Certifications $50K and Seaport Leasing & Asset Management crane related work $40K, repairs at Terminal 115 $30K, and asset condition assessments $80K. Thus far, asset condition assessment work is being done by internal Port staff. Corporate costs, direct and allocated were favorable $957K due to lower than anticipated direct charges and allocations from virtually all orgs/departments including Legal $221K, Public Affairs $116K, Police $113K, Accounting and Financial Reporting $98K, ICT $66K, and Human Resources $51K. CDD Allocations (included in Corporate Allocations) were favorable $287K due to overall less spending by CDD groups on non-direct charge, non-overhead rate eligible expense items. Maintenance costs, direct and allocated were favorable $115K primarily due to later start on some projects than budgeted and work being done by PCS rather than Marine Maintenance on another project. Travel & Other Employee Expenses, Promotional Hosting, and Trade Business and Community favorable $101K due to timing. 14 III. SEAPORT DIVISION PERFORMANCE REPORT 03/31/11 1 Bad Debt Expense unfavorable ($202K) due to delay in receipt of payments related to cost sharing agreements on environmental clean-ups projects. Payments were received in early April. Miscellaneous Expense was favorable $83K primarily due to an unused Seaport Division Contingency. All other variances netted to favorable $180K or less than 1.5% of Total Expenses Budgeted. NOI Before Depreciation was $2,539K favorable to budget. Depreciation was $46K, or approximately 1%, favorable to the 2011 Budget. NOI After Depreciation was $2,585K favorable to budget. Forecast As of the end of the 1st Quarter 2011, Seaport anticipates ending the year on budget for NOI Before Depreciation. At the beginning of 2011, a change was made in the way Marine Maintenance charges overhead to expense projects and programs. As a result, approximately $2,300K of Maintenance related overhead expenses are forecasted to be direct charged to Seaport and therefore reflected in Direct Expenses rather than in Divisional Allocations. Because this change in methodology was not in place during the development of the 2011 Budget, these offsetting expense impacts are reflected in the Forecast. Change from 2010 Actual NOI Before Depreciation for 2011 increased by $493K from 2010. Revenue is up $1,761K from the prior year due to increase in Container revenue $1,789K resulting from higher crane rent, increase in container lease rate effective July 2010 and application of straight-line rent adjustment to all container terminals. Expenses increased $1,268K due to Terminal 5 Maintenance Dredge Project $532K, earlier payment for Tribal mitigation $259K, earlier payment for city street vacation permits $144K, and higher direct charges and allocations from CDD for asset condition assessment work and SR99 Tunnel property related work. D. CAPITAL SPENDING RESULTS 2011 2011 Variance Estimated Approved EstActs to EstActs as a % 2011 Plan $ in 000's Actual Budget Budget of Budget of Finance Terminal 10 5,374 5,326 (48) 101% 5,585 Terminal 18 4,146 4,616 470 90% 5,040 Cruise 4,313 4,617 304 93% 2,737 Security 3,855 3,583 (272) 108% 1,799 Terminal 91 - Industrial Properties 4,247 3,568 (679) 119% 4,073 Cranes 1,353 3,465 2,112 39% 2,800 All Other 8,559 8,778 219 98% 7,456 Total Seaport 31,847 33,953 2,106 94% 29,490 Comments on Key Projects: Through the first quarter, Seaport spent 13% of the Approved Capital Budget. Full year spending is estimated to be 94% of the Approved Capital Budget. Projects with significant changes in spending were: Terminal 5 Crane Cable Reels Bids came in below estimate. Terminal 91 Water Main Replacement Expect to complete earlier than originally projected. Expenditures originally planned for 2012 expected to occur in 2011. Changes between the 2011 Plan of Finance and the 2011 Approved Budget represent modifications in 2011 spending estimates made after determination of 2010 actual spending. 15 IV. REAL ESTATE DIVISION PERFORMANCE REPORT 03/31/11 FINANCIAL SUMMARY 2010 2011 2011 Budget $ in 000's Actual Forecast Budget Var $ Var % Operating Revenue 29,820 30,707 30,707 0 0% Total Revenues 29,820 30,707 30,707 0 0% Total Operating Expenses 31,499 36,079 36,079 0 0% Net Operating Income (1,678) (5,372) (5,372) 0 0% Capital Expenditures 3,965 16,074 16,339 265 2% Total Real Estate Division Revenues are $13K favorable to budget year-to-date due to favorable revenue variances from Recreational Boating, Commercial Properties and Real Estate Planning & Development largely offset by an unfavorable variance from Bell Harbor International Conference Center due to lower activity than assumed in the Budget. For the full year, Real Estate is forecasting revenue to come in on Budget. Total Operating Expenses are $1,660K, or 19%, favorable to budget primarily due to timing. For the full year, Real Estate is forecasting Operating Expenses to come in at Budget. Forecasted Net Operating Income for 2011 is estimated to be on Budget for the year and $3,694K below 2010 Actual. Higher maintenance, corporate and CDD expenses are driving the year over year change. At the end of the first quarter, capital spending for 2011 is currently estimated to be $16.1 million or 98% of the Approved Annual Budget amount of $16.3 million. A. BUSINESS EVENTS Occupancy levels at Commercial Properties were at 89% at the end of the first quarter, which is below the 90% target for the 2011 Budget, but above comparable statistics for the local market 84%. Through the 1st quarter, moorage occupancies at Fishermen's Terminal and Maritime Industrial Center met 2011 Budget targets. Recreational marinas averaged 93% occupancy for the quarter which was above the target of 91%. Fishermen's Terminal NW dock fender replacement, south wall replacement, and Maritime Industrial Center sheet pile replacement projects are underway. All are expected to be complete in the second quarter. Fishermen's Terminal net shed pilot program continues with 14 lofts removed in the first quarter and 37 customers on waiting list to get racking installed when it is approved. Signed letter of intent with potential tenant for 18-acre City of SeaTac site. Issued Request for Proposal for Tsubota Steel site. Closed on street vacation/acquisition and right of way sale with City of Des Moines. Eastside Rail Corridor Continuing to develop streamlined procedures and standards to handle the volume of incoming access requests. Over 45 requests in 1st quarter for access from municipalities, public agencies, utilities and private homeowners for construction, utility installations and various types of access. Marine Maintenance Continuing Deferred Maintenance Reduction Program Established physical site for Marine Maintenance at Terminal 91. Capital infrastructure will allow for 40 people to direct report when work is completed. 16 IV. REAL ESTATE DIVISION PERFORMANCE REPORT 03/31/11 B. KEY INDICATORS Shilshole Bay Marina Occupancy 120.0% 100.0% 2010 Actual Footage 80.0% 2011 Budget 60.0% Percent Linear 2011 Actual 40.0% 20.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Fishermen's Terminal Moorage Occupancy 120.0% 100.0% 2010 Actual Footage 80.0% 2011 Budget 60.0% Percent Linear 2011 Actual 40.0% 20.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Commercial Building 100% 90% 88% 90% 89% 90% 90% 90% 89% 87% 88% 2010 Actual 80% 2011 Target Percent Occupied 70% 2011 Actual 60% Qtr 1 Qtr 2 Qtr 3 Qtr 4 Net Operating Income Before Depreciation By Business 2010 2011 2011 2011 Bud Var Change from 2010 $'s in 000's Actual Actual Budget $ % $ % Recreational Boating 691 629 157 472 301% (62) -9% Fishing & Commercial (376) (449) (582) 132 23% (73) -19% Commercial & Third Party (17) (53) (802) 749 93% (36) -214% Eastside Rail (47) (98) (162) 64 39% (51) -108% RE Development & Plan (61) (47) (303) 256 84% 13 22% Envir Grants/Remed Liab 0 0 0 0 NA 0 NA Total Real Estate 190 (20) (1,693) 1,673 99% (210) -110% 17 IV. REAL ESTATE DIVISION PERFORMANCE REPORT 03/31/11 C. OPERATING RESULTS 2010 YTD 2011 Year-to-Date 2011 Bud Var Year-End Projections $ in 000's Actual Actual Budget $ % Budget Forecast Variance Operating Revenue 6,784 7,134 7,121 13 0% 30,707 30,707 0 Total Revenue 6,784 7,134 7,121 13 0% 30,707 30,707 0 Direct Expenses 6,229 6,179 7,986 1,806 23% 33,221 30,921 2,300 Envir Remediation Liability 0 0 0 0 NA 0 0 0 Divisional Allocations (823) (425) (827) (403) -49% (3,787) (1,487) (2,300) Corporate Allocations 1,189 1,400 1,656 256 15% 6,645 6,645 0 Total Expense 6,594 7,154 8,814 1,660 19% 36,079 36,079 0 NOI Before Depreciation 190 (20) (1,693) 1,673 99% (5,372) (5,372) 0 Depreciation 2,480 2,520 2,505 (15) -1% 10,166 10,166 0 NOI After Depreciation (2,290) (2,540) (4,198) 1,658 39% (15,538) (15,538) 0 Total Real Estate revenues were $13K favorable to budget. Key variances are as follows: Harbor Services: Favorable $48K Recreational Boating favorable $72K due to 148 more boat-months than planned. Fishing and Commercial favorable ($24K) primarily due to fewer small fishing and commercial work boats. Portfolio Management: Unfavorable ($80K) Commercial Properties favorable $86K primarily due to higher occupancy at Terminal 102 Marina Corporate Center and higher occupancy and utility revenue at Fishermen's Terminal Office & Retail. Third Party Managed Properties unfavorable ($166K) due to lower activity than anticipated at the Bell Harbor International Conference Center and lower occupancy at WTC West than assumed in Budget. Eastside Rail Corridor: Unfavorable ($20K) Eastside Rail Corridor unfavorable ($20K) due to considerable unknowns at time of Budget. Budgeted revenue was based on continuing review of over 844 agreements assigned to the Port from BNSF. As research and billing progressed it was found that only 240 agreements require payment and they are spread among annual, 5-year, and 10-year periodic payments. RE Development and Planning: Favorable $33K Terminal 91 General Industrial favorable $33K due due to higher revenue from Pacific Maritime Association as a result of the tenant taking more yard space. Facilities Management: Favorable $2K Pier 69 Facilities Management $2K due to reimbursed tenant work that was not budgeted for 2011. Maintenance: Favorable $31K Maintenance $31K due to unbudgeted license to use fees from parks and recycling fees. Total Real Estate expenses were $1,660K favorable to budget. Key variances: Third Party Management Expense and Management Fees related to the World Trade Center Club, World Trade Center West and Bell Harbor International Conference Center were favorable $216K due to expense controls by third party managers and due to timing of acquisition of furniture and equipment at BHICC. Outside Services (excluding Maintenance and Corporate) were favorable $234K primarily due to lower than expected spending on Eastside Rail Corridor, slower start on Environmental Services projects related to Real Estate properties and timing of payments on contracts for janitorial and watchmen services. Amounts were partially offset by unexpected repairs needed at World Trade Center West. Maintenance expenses were favorable $704K primarily due later start of the Bell Street Garage sprinkler project and to lower than anticipated overhead charges to the Real Estate Businesses. Corporate costs, direct and allocated, were favorable $436K primarily due Legal $203K, Accounting & Financial Reporting $42K, Police $41K, Public Affairs $28K and IT $26K. 18 IV. REAL ESTATE DIVISION PERFORMANCE REPORT 03/31/11 Room/Space/Land Rental favorable $67K due to correction of prior accruals related to DNR submerged land rent for Pier 69 and Pier 66. Litigated Injuries & Damages unfavorable ($98K) due to reserve for legal expense set up for lawsuit filed. All other variances netted to an favorable $101K or less than 1.2% of Total Expenses budgeted. NOI Before Depreciation was $1,673K favorable to budget. Depreciation was ($15K) unfavorable to budget primarily due to unanticipated depreciation at Bell Harbor. The variance amounted to less than 1% of budget. NOI After Depreciation was $1,658K favorable to budget. Forecast Real Estate anticipates ending the year at Budget for NOI Before Depreciation. At the beginning of 2011, a change was implemented in the way Marine Maintenance charges overhead to expense projects and programs. As a result, approximately $2,300K of Maintenance related overhead expenses will be direct charged to the Seaport Divison rather than ascribed to Seaport through Divisional Allocations. Because this change in methodology was not in place during the development of the 2011 Budget, the impact on theses offsetting expense impacts are reflected in the Real Estate Division Forecast. Change from 2010 Actual Net Operating Income Before Depreciation decreased by ($210K) between 2011 and 2010 as a result of higher revenue more than offset by higher expenses. Operating Revenue increased by $350K due to higher revenue at the Bell Harbor International Conference Center $285K and Bell Street Garage $78K. Expenses increased by $560K in 2011 due to tenant improvement costs, higher third party management expense associated with BHICC, litigated damages associated with a lawsuit filing and higher utilities. D. CAPITAL SPENDING RESULTS 2011 2011 Variance Estimated Approved EstActs to EstActs as a 2011 Plan $ in 000's Actual Budget Budget % of Budget of Finance FT NW Dock Fender System 3,138 3,440 302 91% 3,350 FT East Portion South Wall 3,409 3,232 (177) 105% 4,668 Small Projects 2,026 2,026 0 100% 992 RE Maintenance Shop Solution 1,921 1,925 4 100% 186 MIC Seawall Replacement 1,805 1,707 (98) 106% 2,123 All Other 3,775 4,009 234 94% 4,038 Total Real Estate 16,074 16,339 265 98% 15,357 Comments on Key Projects: Through first quarter, the Real Estate Division spent 18% of the Approved Capital Budget. Full year spending is estimated to be 98% of the Approved Capital Budget. Projects with significant changes in spending were: FT NW Dock Fender System Actual contractor bids lower than estimate. Changes between the 2011 Plan of Finance and the 2011 Approved Budget represent modifications in 2011 spending estimates made after determination of 2010 actual spending. 19 V. CAPITAL DEVELOPMENT DIVISION PERFORMANCE REPORT 03/31/11 A. BUSINESS EVENTS Received Commission approval for and executed Port's first design/build contract with Turner Construction and Kone for 44 escalators in main and satellite terminals. Began construction on Bus Maintenance Facility, critical path item for opening of new Rental Car Facility in 2012. Regional Contractors' Forum held at Convention Center on March 30. Developed annual schedule for, and began, training cycle for CPO101, CPO102 and CPO103. Purchase-Card procedure implemented; 7 training sessions completed; development of website underway. $350K unbudgeted under-dock inspections (asset management). The negative variance from this expense work is expected to carry forward through YE2011. Several key PCS projects in progress for the 1st quarter of 2011 include the Removal of Emergency Generators, Terminal 91 Waterline & Paving, Noise Remedy Window Replacement, and PC Air CTE Basement Preparation. Started the process for preparing the RFQ for Regulated Materials Service Agreements for asbestos design and monitoring. Construction has started on the following projects: replacement of central seawall section at Maritime Industrial Center; final phase of the South Wall seawall reconstruction, installation of new fender system on east half of Northwest Dock, and Northwest Dock Fender System Replacement at Fishermen's Terminal. Construction complete and beneficial occupancy obtained for the Terminal 18 South Fender Replacement, Phase 1 of the Fender Damage Repair and North Harbor Island Mooring Dolphins. Completed Terminal 5 Maintenance Dredging Phase I on schedule and under budget. Construction on the East Marginal Way Grade Separation project continues including concrete paving on both roadways and bridge deck. Project is 75% complete. Terminal 91 Cruise Fender Phase 1 construction (15 piles) complete by PCS crews, system ready for 2011 cruise season. Corps of Engineers completed interim clearance of discarded munitions at Terminal 91. 20 V. CAPITAL DEVELOPMENT DIVISION PERFORMANCE REPORT 03/31/11 B. KEY PERFORMANCE METRICS Key Performance 2011 YTD Notes Metrics Construction Soft ($ in 000's) Limit construction soft costs (design, Costs construction management, project Total Costs $ 148,442 (100%) management, environmental 36 month rolling documentation) to no more than 25% average from Total Construction: $ 119,685 ( 81%) of total capital improvement costs. Q2 2008 thru Q1 2011 Total Soft: $ 28,757 ( 19%) Cost Growth During Total Completed Projects YTD: 2 Limit average mandatory change cost Construction growth to 5% of construction contract Discretionary Change: 0.4% award. Mandatory Change: 9.8% Limit average discretionary change cost growth to 5% of construction contract award. Design Schedule ($ in 000's) Limit design growth from initial Growth Total Completed Projects YTD: 2 Commission project authorization to Avg Design Growth Completed Proj's: 74.5% construction advertisement to no more Cumulative Value YTD: $97,199 than 10% of originally allotted duration. Construction Schedule ($ in 000's) Limit construction growth from Growth Total Completed Projects YTD: 2 contract award to substantially Avg Construction Growth Completed complete to no more than 10% of Projects: 29.9% originally allotted duration Cumulative Value YTD: $97,199 Performance Q1 2011 98% PREPs completed within 30 days Evaluation Timeliness Total PREPs due: 47 47 of anniversary date. Total PREPs on time: 0-30 days (CDD) 33 33 (70.2%) (70.2%) 0-60 days (HRD) 8 8 (87%) (87%) 2011 Procurement Good & Services 76 days Average number of days, improving Schedule: Major Public Works 91 days from period to period. Total Time RFS - Small Works 42 days Execution Service Agreements 252 days 21 V. CAPITAL DEVELOPMENT DIVISION PERFORMANCE REPORT 03/31/11 C. OPERATING RESULTS 2010 YTD 2011 YTD 2011 Bud Var. Year-End Projections $ in 000's Notes Actual Actual Budget $ % Budget Forecast Variance Engineering - 63 - 63 0.0% - - - Port Construction Services - 2 - 2 0.0% - - - Total Revenues - 65 - 65 0.0% - - - EXPENSES BEFORE CHARGES TO CAPITAL PROJECTS Capital Development Administration 89 85 91 6 6.1% 359 359 - Engineering 2,188 2,588 3,803 1,215 32.0% 15,225 15,575 (350) Port Construction Services 1,564 1,353 1,889 535 28.3% 7,554 7,554 - Central Procurement Office 709 1,411 1,099 (312) -28.4% 4,394 4,394 - Aviation Project Management 1,085 882 2,161 1,279 59.2% 8,637 8,637 - Seaport Project Management 520 438 636 197 31.1% 2,493 2,493 - Total Before Charges to Capital Projects 6,155 6,758 9,678 2,920 30.2% 38,662 39,012 (350) CHARGES TO CAPITAL PROJECTS Capital Development Administration - - - - - - - Engineering (1,996) (1,905) (2,686) (781) 29.1% (10,892) (10,892) - Port Construction Services (849) (1,156) (1,084) 72 -6.6% (4,338) (4,338) - Central Procurement Office (322) (277) (303) (27) 8.9% (1,214) (1,214) - Aviation Project Management (967) (691) (1,585) (894) 56.4% (6,338) (6,338) - Seaport Project Management (461) (290) (400) (111) 27.7% (1,602) (1,602) - Total Charges to Capital Projects (4,594) (4,318) (6,059) (1,741) 28.7% (24,384) (24,384) - OPERATING & MAINTENANCE EXPENSE Capital Development Administration 89 85 91 6 6.1% 359 359 - Engineering 193 683 1,117 434 38.9% 4,333 4,683 (350) Port Construction Services 716 197 804 607 75.5% 3,216 3,216 - Central Procurement Office 387 1,135 795 (339) -42.6% 3,180 3,180 - Aviation Project Management 118 191 577 386 66.9% 2,299 2,299 - Seaport Project Management 59 149 235 87 36.8% 891 891 - Total Expenses 1,561 2,440 3,620 1,180 32.6% 14,278 14,628 (350) Summary of Variances: FTEs: 38 vacancies Central Procurement Office: $646K unfavorable due to unbudgeted Seaport T-5 Dredging project. This cost is expected to reverse and transfer to Seaport division for Q2 report. Aviation Project Management: $49K refund from "RST Enterprises" claim (original reserve $50K expensed Q4 2010). Engineering: Under dock inspections cost more than budgeted. Expect $350K unfavorable variance through 2011. 22 VI. CORPORATE PERFORMANCE REPORT 03/31/11 A. BUSINESS EVENTS Held a candlelight service at Fishermen's Terminal to remember the victims of the earthquake and tsunami disaster in Japan. Presented Seattle Propeller Club "State of the Port" and Centennial by CEO. Centennial: o Launched internally with logo mugs and chocolate, including managers' participation for distribution to all employees. o Published and promoted new Centennial Map and Timeline, the interactive history of the Port of Seattle. o Promoted Map and Timeline to employees via online trivia contest with prizes. o Published and distributed Centennial documentary, "Voices of the Port," which has been shown on several cable stations in King County, shown to employees in brownbags, shown to local chambers of commerce at a reception, and distributed to all employees attending the spring employee forum. o Promoted Centennial events including Chamber Reception, brownbags, Video Contest for Schools, and Know the Port by Bike event in June. Partnered with US Coast Guard, Army Corps of Engineers, and Washington Department of Ecology on crafting and implementing a communications plan regarding discarded munitions at Terminal 91. Hosted a live broadcast of CNBC morning shows Squawk Box and Squawk on the Street. Broadcasts featured Port of Seattle as primary driver of regional economic recovery. Highlighted the port's centennial celebration and website to multiple media partners, gaining ongoing positive coverage in several outlets. Pitched and placed a KING-TV/Evening Magazine feature story about POSFD firefighter training; story received excellent air time, running repeatedly over several days. Delivered Code of Conduct to all Port employees and process for feedback provided. Intake system implemented. Training program is being developed. Offered Ethics Survey to all Port employees. Intake and response system continues to be developed and implemented. Training program continues to be developed. Presented the Port's risk metrics and benchmarking the Port utilizes for risk management at the Airport Council International Risk and Insurance Management Conference in January. Launched the 2011 Wellness Rewards Tiered Program. Deadline to complete Health Assessment and Tier 1 is April 30. Telephonic and online coaching program implemented as part of the Wellness Reward program. To date, 72 are engaged in telephonic coaching. Completed 1st quarter safety evaluation. Completed 31% of annual safety training requirements by the end of the 1st quarter. HR&D identified as lead on Request for Proposal (RFP) to select a consultant for design of Portwide process improvement effort. Finalized Scope of Work and expect to advertise the RFP in early Q2. ICT is continuing contract negotiations with the vendor selected to upgrade the Port's financial system to the current version. This project ensures continued vendor support and replaces legacy database infrastructure with Port of Seattle standard. Received a clean, unqualified independent Certified Public Accountant (CPA) audit opinion on the Port's 2010 financial statements, which the AFR department prepares in conformance with industry prescribed accounting and financial reporting standards. Received favorable results from the 2010 Single Audit and Passenger Facility Charge (PFC) audits conducted by the independent auditors, with no questioned cost findings or Federal grants/FAA regulatory compliance findings, for areas which the AFR department is responsible. Issued Limited Tax General Obligation Bonds in the principal amount of $104 million for the purpose of refinancing capital improvements to Port facilities and financing Port activities and costs of issuance. 23 VI. CORPORATE PERFORMANCE REPORT 03/31/11 B. KEY PERFORMANCE METRICS Key Performance Metrics 2011 YTD 2010 YTD/Notes A. High Performance Workplace: 1. Occupational Injury Rate 5.17 4.31, increased by 0.86 2. Lost Work Day Case Rate 1.36 2.32, decreased by 41% 3. Injury Cost per Worked Hour $.95 $3.58, decreased is due to reduction in reserves 4. Total Lost Work Days 85 85 5. Contract Administration Issues 11 28, decreased by 17 6. Employee Training a) New Employee Orientation 22 11, increased by 11 b) REALeadership Program 30 29, increased by 1 c) MIS Training 2 Classes and 14 users 4 classes and 54 users d) Required Safety Training 31% 25%, increased by 24% 7. Job Openings 85 43, increased by 42 8. Applications Received 2,858 2,036, increased by 822 9. Job Evaluations 20 11, increased by 9 B. Transparency: 1. Rate of Public Meetings 6 2, increased by 4 2. Public Disclosure Requests 76 74, increased by 2 3. Website Visits a) Track and grow Web site 2,036,201 total page views; 2,428,967 total page views, decreased usage 1,430,113 unique page views by 16%; 1,742,791 unique page views, decreased by 18% b) Initiate YouTube usage 10,669 total upload views, 77 Not Available subscribers to our channel 1st quarter c) Track and grow Constant 19,293 active contacts 16,142 contacts at year-end Contact electronic newsletters and bulletins d) Increase internal Reached 420 employees Site is averaging 5,500 visits per day, communications via attending employee forums. and about 1,200 unique users. Top Compass 28,738 visits to Compass this five pages are Compass home, period, 958 page views per Aviation, HRD, What's on your mind day. (Compass blog), & External Affairs. C. Accountability: 1. Internal Audits Completed 4 5, decreased by 1 2. % of Audit Plan Completed 13% 17%, decreased by 24% due to one less auditor 3. Preventable Vehicle Incidents 15 17, decreased by 2 D. Other Services and Support: 1. Trouble Tickets Created 4,573 4,758, decreased by 4% 2. Service Requests Created 1,048 1,124, decreased by 7% 3. Laptops in Operation 1,397 1,267, increased by 10% 4. Computers in Operation 2,042 2,181, decreased by 6% 5. Cell Phone in Operation 811 727, increased by 12% 6. Police Service Calls 13,012 14,035, decreased by 7% 7. Police Arrests 129 with no warrant 147, decreased by 18; 97 with warrant 112 with warrant, decreased by 15 24 Key Performance Metrics 2011 YTD 2010 YTD/Notes D. Other Services and Support: 8. Attorney Services 27 litigation and claims 28 litigations and claims, decreased by 1 9. Labor Contracts Negotiated 0 4, decreased by 4 10. Small Business Roster 1,198 1,122, increased by 76 C. OPERATING RESULTS 2010 YTD 2011 YTD 2011 Bud Var. Year-End Projections $ in 000's Notes Actual Actual Budget $ % Budget Forecast Variance Total Revenues 95 242 159 83 52.6% 1,025 1,059 34 Executive 348 352 440 87 19.9% 1,500 1,500 - Commission 225 148 231 84 36.2% 931 931 - Legal 611 512 1,043 531 50.9% 2,906 2,906 - Risk Services 601 617 690 73 10.6% 2,789 2,750 39 Health & Safety Services 240 263 295 31 10.7% 1,129 1,123 6 External Affairs 1,183 1,253 1,791 538 30.0% 7,012 7,012 - Human Resources & Development 746 1,040 1,251 212 16.9% 5,285 5,275 10 Labor Relations 128 208 232 24 10.2% 922 922 - Information & Communications Technology 4,082 4,212 4,536 324 7.1% 19,511 19,511 - Finance & Budget 348 348 376 28 7.5% 1,493 1,490 3 Accounting & Financial Reporting Services 1,365 1,314 1,725 411 23.8% 6,596 6,586 10 Internal Audit 241 256 299 43 14.3% 1,215 1,215 - Office of Social Responsibility 209 194 375 181 48.3% 1,567 1,567 - Police 4,302 4,880 5,425 545 10.1% 21,452 21,432 20 Contingency - 44 175 131 74.9% 700 700 - Total Expenses 14,629 15,642 18,886 3,244 17.2% 75,008 74,920 88 Corporate revenues were $83 thousand favorable compared to budget due to higher operating grants. Corporate expenses for the first three months of 2011 were $15.6 million, $3.2 million or 17.2% favorable compared to the approved budget and $1.0 million or 6.9% higher than the same period a year ago. The $3.2 million favorable variance is due primarily to timing differences between when the items are paid and when budgeted and not necessarily cost savings. There aren't any major variances to report on since all corporate departments have a favorable variance. Year-end spending is projected to be $88 thousand under budget. D. CAPITAL SPENDING RESULTS ($ Millions) Annual Results: 2011 Plan of Finance $12.07 2011 Approved Budget $12.90 2011 Estimated/Actuals $13.53 Variance (Budget vs Actuals) ($0.63) 25
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