Item 9a Supp3
Item No. : _______9a_Supp3______ Date of Meeting: ___October 6, 2009___ Real Estate Division 2010 Preliminary Budget Commission Review October 6, 2009 1 Key Assumptions Marina occupancy rate 94% compared to 97% in 2009 Budget. Fishing & Commercial occupancy rates FT 78% and MIC 72% compared to FT 82% and MIC 75% in 2009 Budget. Commercial Properties target 90% occupancy. 2009 Budget target was 95%. Activity at Bell Harbor International Conference Center flat to 2009. Eastside Rail Corridor transaction closes in 2009. Implementation of Deferred Maintenance Plan. 2 Org Revenues By Group Real Estate Division Only 2007 2008 2009 2010 '09-'10 Change $'s Thousands Actual Actual Budget Budget $ % Revenue Harbor Services 8,620 10,538 11,559 11,260 (299) -2.6% Portfolio Management 21,865 22,587 18,407 17,347 (1,060) -5.8% Commercial 8,175 7,650 7,309 6,587 (722) -9.9% Third Party 13,690 14,938 11,097 10,760 (338) -3.0% Development & Planning 1,418 1,181 566 749 183 32.3% Eastside Rail 0 0 150 155 5 3.0% Facilities & Maintenance 306 894 279 413 133 47.8% Operating Revenue 32,208 35,200 30,961 29,923 (1,038) -3.4% Environmental Grants 0 1 150 0 (150) -100.0% Total Revenue 32,208 35,202 31,111 29,923 (1,188) -3.8% 33 Real Estate Org Expense Budget Real Estate Division Expenses Only 2009 2010 $'s Thousands Budget Budget Change % Baseline Budget Salaries & Benefits 7,425 7,797 372 5.0% Wages & Benefits 6,491 6,963 472 7.3% OPEB 218 226 8 3.5% Salaries & Wages to Capital 1,006 1,000 (6) -0.6% Total Payroll Costs 15,141 15,986 845 5.6% Net Payroll Expense (net of to capital) 14,135 14,986 852 6.0% Utilities 3,074 2,988 (86) -2.8% Third Party Mgmt (Hospitality Only) 7,492 7,180 (313) -4.2% Other O&M 4,765 4,703 (62) -1.3% Allocated to Capital (300) (631) (331) 110.3% Total Baseline Budget 29,166 29,226 60 0.2% Initiatives Tenant Improve & Broker Fees 788 342 (446) -56.6% Deferred Maint Projects in Budget 737 1,383 646 87.7% Deferred Maint Salaried Staff 0 383 383 NA Eastside Rail Corridor 484 484 0 0.0% Contingency 0 0 0 NA Total 2,009 2,593 584 29.0% Total Operating Expenses 31,175 31,819 644 2.1% Environmental Reserve 1,125 7,000 5,875 522.2% Total Expenses 32,300 38,819 6,519 20.2% 4 Full-Time Equivalents (FTEs) 2009 Budget 151.1 Harbor Services - Compliance Coordinator (Ltd Duration) 1.0 Maintenance - Wage Personnel Reductions (2.0) Facilities - Facilities Specialist (1.0) Adjusted 2009 149.1 2010 Budget Staff Reductions: Facilities - Transfer Admin to Harbor Services (1.0) RE Dev & Planning - Project Assistant (1.0) Maintenance - Chg of Teamsters from 1.25 to 1 (0.3) Staff Additions: Harbor Services - Admin from Facilities 1.0 Maintenance - Fac Maint Mgr (Deferred Maint) 1.0 Maintenance - Admin (Deferred Maint & Project Work) 1.0 Maintenance - Admins for Crew Chief Support 2.0 Maintenance - Skilled Crafts to Support Budgeted Work 3.0 Net Change 5.7 Proposed 2010 Budget 154.8 5 Org Expenses By Group Real Estate Division Expenses Only 2007 2008 2009 2010 09-'10 Bud Change Actual Actual Budget Budget $ % Operating Expenses Harbor Services 4,006 4,179 4,318 4,586 268 6.2% Portfolio Management 13,553 12,347 12,499 11,511 (988) -7.9% Commercial 4,011 1,902 4,009 3,477 (532) -13.3% Third Party 9,541 10,445 8,490 8,034 (456) -5.4% Development & Planning 581 7,770 586 580 (6) -1.0% Eastside Rail Corridor 0 0 484 484 0 0.0% Maintenance 10,036 11,971 10,951 12,345 1,394 12.7% Facilities 2,202 1,995 1,973 1,933 (40) -2.0% Division Admin 0 356 363 379 16 4.3% Contingency 0 0 0 0 0 NA Total Operating Expenses 30,378 38,619 31,175 31,819 644 2.1% Environmental Reserve 0 604 1,125 7,000 5,875 522.2% Total 30,378 39,223 32,300 38,819 6,519 20.2% 6 Real Estate Budget Summary Inclusive of Direct Charges & Allocations from Corporate, CDD, & Other Divisions 2007 2008 2009 2010 09-'10 Bud Change $'s Thousands Actual Actual Budget Budget $ % Revenues Operating Revenues 32,164 34,875 30,961 29,798 (1,163) -3.8% Environmental Grants 164 1 150 0 (150) -100.0% Total Revenues 32,328 34,877 31,111 29,798 (1,313) -4.2% Expenses Direct Expenses 28,984 36,375 31,821 31,139 682 2.1% Environmental Reserves 576 604 1,125 7,000 (5,875) -522.2% Divisional Allocations (2,816) (3,413) (3,515) (3,822) 307 8.7% Corporate Allocations 3,676 5,253 5,960 5,931 29 0.5% Operating Expenses 30,420 38,819 35,391 40,248 (4,857) -13.7% Net Operating Income 1,907 (3,943) (4,279) (10,450) (6,171) -144.2% NOI Excl Envir Grants/Reserve 2,320 (3,340) (3,304) (3,450) (146) -4.4% 7 Risks Economic downturn could impact vacancies and tenants' ability to pay Vacancies at T102 and World Trade Center West Unknowns with Eastside Rail Corridor Environmental Reserve Unexpected maintenance work Electrical rate increase Performance Audit Implications 8 Real Estate Division 2010 Preliminary Capital Budget October 6, 2009 9 Capital Budget Review Capital Budget reviewed by cross functional teams Reviewed all existing projects and identified new projects as driven by: 2010 Real Estate Strategies New developments and information from customers and tenants Continuing effort to identify specific renewal and replacement projects 10 Real Estate Capital Plan Summary $'s in 000's 2010 2010-2014 2015-2019 Total Committed 15,346 40,308 20,576 60,884 Bus Plan Prospective 5,620 61,325 31,300 92,625 20,966 101,633 51,876 153,509 Other Prospective 0 30,681 90,950 121,631 Total 20,966 132,314 142,826 275,140 11 Real Estate Committed Capital Plan $'s in 000's 2010 2010-2014 2015-2019 Total Under Contract 122 122 0 122 Commission Auth 1,075 6,936 0 6,936 Division Pending 14,149 33,250 20,576 53,826 Total 15,346 40,308 20,576 60,884 12 Real Estate Committed Capital Under Contract $'s in 000's 2010 2010-2014 2015-2019 Total SBM Infrastru,Bldgs, Site Imp 62 62 0 62 SBM Landside Projects 60 60 0 60 Total 122 122 0 122 13 Real Estate Committed Capital Commission Authorized $'s in 000's 2010 2010-2014 2015-2019 Total FT East Portion S. Wall (FVO) 675 4,825 0 4,825 MIC Seawall Replacement 400 2,111 0 2,111 Total 1,075 6,936 0 6,936 14 Real Estate Committed Capital Division Pending $'s in 000's 2010 2010-2014 2015-2019 Total RE Maintenance Shop Solution 3,300 3,600 0 3,600 RE Div: Green Port Initiative 2,600 7,100 12,500 19,600 FT NW Dock E Fender Sys Replace 2,000 4,000 0 4,000 Small Projects 1,810 3,850 2,505 6,355 Tenant Improvements -Capital 1,220 2,606 71 2,677 Fleet Replacement 950 3,350 3,000 6,350 FT C15 HVAC Improvements 800 3,850 0 3,850 Other 1,469 4,894 2,500 7,394 Total 14,149 33,250 20,576 53,826 15 Real Estate Capital Business Plan Prospective $'s in 000's 2010 2010-2014 2015-2019 Total Renewal/Enhancement 5,620 44,625 31,300 75,925 Revenue/Capacity Growth 0 16,700 0 16,700 Total 5,620 61,325 31,300 92,625 16 Real Estate Business Plan Prospective Revenue/Capacity Growth $'s in 000's 2010 2010-2014 2015-2019 Total T91 - NorthBay Utilities 0 14,500 0 14,500 Ship Supply Demo & Redevelop 0 2,200 0 2,200 Total 0 16,700 0 16,700 17 Real Estate Business Plan Prospective Renewal/Enhancement $'s in 000's 2010 2010-2014 2015-2019 Total Net Shed Solution 2,100 16,600 0 16,600 RE: Contingency Renew & Replace 1,000 15,000 29,000 44,000 FT Paving/Storm Upgrades 750 1,500 0 1,500 FT C2 Roof & HVAC Replacement 700 700 0 700 Pier 86 Fishing Dock 500 2,055 0 2,055 P66 Chiller Upgrades 270 270 0 270 SBM Paving 150 1,000 0 1,000 SBM Slope Stabilization 100 1,000 0 1,000 P69 Built-Up Roof Replacement 50 900 0 900 Other 0 5,600 2,300 7,900 Total 5,620 44,625 31,300 75,925 18 Real Estate Division 2010 Preliminary Budget Commission Review October 6, 2009 19
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