Item 9a Supp2

ITEM NO.     9a Supp2
DATE OF
MEETING October 8, 2009
Capital Development Division
2010 Preliminary Budget
Presentation to Commission

October 8, 2009

Mission
The Capital Development Division (CDD) delivers
projects and provides technical and contracting
services in support of the business plans and
infrastructure needs of the Port of Seattle.


2

Priorities for 2010
Continue the full implementation of the changes resulting
from recent audits and new Port Policies, anticipating a
return visit from the State Audit Office in 2011.
Begin operation of the new Enterprise-wide Project
Delivery (EPDS) system.
Prioritize accomplishment of critical CIP projects.
Measure department performance according to the
Capital Development Division performance metrics.
Complete the high priority Capital Development Division
Initiatives.
3

Key Budget Assumptions
Budget built to projects and
workload.
Conversion of consultant
performance to in-house continues.
CPO vacancies filled.

4

Organization Chart
Managing
Director          Asst. to Mng'g Dir.
Capital Dev Div         Connie Davis
Ralph Graves


Engineering       Central Procurement        Port Cons't           Seaport            Aviation
Management         Office           Services         Project Mgt        Project Mgt
Services           Nora Huey         Dwight Rives        Dakota Chamberlain        Bob Riley
Ray Rawe
Asst Director
Asst Dir Eng          Purchasing                          Capital Proj Mgr      Eileen Francisco
Design                                          RealEst/Cruise
Bob Maruska         Tim Jayne                         Fred Chou        Asst Director
Janice Marsters
Asst Dir Eng          Construction                          Capital Proj Mgr
CM        Contracts                 Cargo/Container     Program Ldr
Janice Zahn         Paul Powell                           Anne Porter         Term & Tenant
Infr & Security
Survey        Service Agreements                      Project Controls        Larry Lanier
Garry Ensley
Brian Knight                            Curt Stahlecker        Program Ldr
Budget/Tech                                                         Landside &
Bonnie Scott                                           Admin Support        Stormwater
George England
Constr Safety                                             Cassie Fritz
John Hogan

5

Org Expenses By Group
2008      2009     2010     2010    '10 Bud to '10 Target
Actual   App. Budget   Budget    Target      $       %

Capital Development Admin             93,309      554,217     389,915      526,506      136,591    25.9%
Engineering                     1,253,396     1,351,260    1,406,149    1,283,697    (122,452)    -9.5%
Port Construction Service              1,965,496     1,449,265    1,632,152    1,376,802     (255,350)    -18.5%
Central Procurement Office            1,313,019     1,494,027    2,278,125    1,419,326    (858,799)    -60.5%
Aviation Project Management            861,485      761,200    1,449,554     723,140     (726,414)   -100.5%
Seaport Project Management            798,948     1,400,044     754,201     1,330,042     575,841    43.3%

Total Expense                   6,285,651     7,010,014    7,910,095    6,659,513   (1,250,582)   -18.8%

6

Baseline Budget Analysis
2010 (5%)    '10 Bud to
2009 Total           2009 One          2010 Total                            Target based on '10 Baseline
Costs bef   Net 2009    Time     2009    Costs bef   Net 2010   2010 One             2009 Baseline    Target
Cap & Trfs App. Budget  Expense   Baseline  Cap & Trfs  Budget  Time Expense 2010 Baseline   Budget     Change     %
Engineering       3 - - -   0.0%
PCS       7,406 - - -  0.0%
Total Rev     7,409 - - -   0.0%
CD Admin   553,917   554,217 -   554,217   389,615  389,915 -     389,915    526,506   136,591  25.9%
Engineering  13,001,690  1,351,260  (255,000) 1,096,260 13,811,998 1,406,149  (399,791)    1,006,358    1,041,447    35,089   3.4%
PCS     7,175,429  1,449,265       1,449,265 6,859,942 1,632,152  (200,000)   1,232,152   1,376,802   144,650  10.5%
CPO     3,662,700 1,494,027 -  1,494,027 4,255,425 2,278,125  (85,000)   2,193,125   1,419,326  (773,799) -54.5%
Avn PMG   6,824,293  761,200  (50,000)  711,200  6,455,038 1,449,554  (838,528)   611,026    675,640   64,614  9.6%
Sea PMG   3,367,157  1,400,044  (690,000)  710,044  2,722,317  754,201  (236,164)    518,037    674,542   156,505  23.2%
Total Exp   34,585,186  7,010,014  (995,000) 6,015,014 34,494,335 7,910,095 (1,759,483)    5,950,613    5,714,263   (236,350)  -4.1%

7

One-Time Expenses
$768k - RCF tenant improvement project work
$100k - EPDS implementation support
$218k  AWV support
$95k  T5 dredging
$188k  FT net sheds
$96k  Water Meters
$39k  Dock inspections
$200k  Kilroy to STIA PCS move

8

Staffing FTEs by Department
STAFFING
(Full-Time Equivalent Position)                      % Change
2009   2010   2010 -2009
BY DEPARTMENT             Budget  Budget   Budget
Capital Development Administration        3      2      -33.3%
Central Procurement Office             34     36        5.9%
Engineering                    111.5   111.5       0.0%
Port Construction Services              54     55        1.9%
Aviation Project Management           49     45       -8.2%
Seaport Project Management          19.8    18.5       -6.6%

TOTAL CAPITAL DEVELOPMENT DIVISION   271.3    268      -1.2%


9

Procurement Staff Pre-Audit



10

CPO Today



11

CPO Personnel Expenses
$155k  Director transferred in
$270k  2009 vacancies
$285k  Position reclassifications
$60k  Reclassification benefits
($170k)  Less capital
($55k) "First-cut" hire lag savings
12

Risks
Financing difficulties disrupt capital programs.
Operating income declines interrupt expense-
funded programs.
Personnel and process transitions disrupt project
performance.
Renewed audit scrutiny disrupts response and
performance.
Resource shortages constrain process
improvements.
13

Opportunities
Depressed market generates low bids for
construction.
Slowed design and construction employment
provides quality candidates for CDD vacancies.
Sustainable Asset Management can inform
project decisions.
Building Information Management can aid
project visualization and construction.
14

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