ITEM NO.

6a_Supp

DATE OF
MEETING March 1, 2011

2010 Financial Performance
Port of Seattle
March 1, 2011

Background
Zero Based Budgeting for 2010 Budget:
• Reduced and eliminated some programs and functions
• Implemented Voluntary Separation Program (VSP)
• Introduced premium sharing for Port sponsored
medical plan
• Eliminated 110 positions (6.2% of the total workforce)
• 2010 budget was very lean.

2

Operating Income Summary
2009
Actual

2010
Actual

Aeronautical Revenues

182,534

198,329

210,367

(12,038)

-5.7%

Other Operating Revenues

266,901

272,161

266,416

5,745

2.2%

Total Operating Revenues

449,435

470,490

476,784

(6,293)

-1.3%

Total Operating Expenses

245,767

253,195

262,696

9,501

3.6%

Income before Depreciation

203,668

217,295

214,088

3,208

1.5%

Depreciation

157,068

160,775

158,575

(2,199)

-1.4%

Income after Depreciation

46,600

56,521

55,512

1,008

1.8%

$ in 000's

2010 2010 Act vs. Bud
Budget
Var $ Var %

3

2010 Major Revenue Variances
Major Revenues ($ in 000's)
Aeronautical Revenues

Bud Var.
(12,038)

Public Parking
Rental Cars
Concessions
Container
Cruise
Grain
Dock & Industrial Properties
Seaport Security Grants
Seaport Environmental Grants
Commercial Properties
Real Estate Third Party Mgmt
Other
Total Non-Aero Revenues

(2,396)
(705)
3,177
4,838
1,359
502
1,183
(744)
(1,600)
(405)
358
178
5,745

TOTAL

(6,293)
4

2010 Major Expense Variances
Operating Expenses ($ in 000's)

Actual/Budget
Var. $ Var. %

Salaries & Benefits

6,399

7.3%

Wages & Benefits

(860)

-1.1%

Payroll to Capital Projects

6,566

29.0%

Equipment Expense

(1,230) -23.6%

Supplies & Stock

(915) -15.8%

Outside Services

5,686

12.1%

Utilities

927

4.6%

Travel & Other Employee Exps

806

18.9%

Promotional Expenses

389

25.8%

Other

(485)

3.6%

(7,782)
9,501

21.5%
3.6%

Charges to Capital Projects
Total

5

Net Operating Income Comparison

6

Comprehensive Summary
Revenues
Aeronautical Revenues
Other Operating Revenues
Tax Levy
PFCs
CFCs
Non-Capital Contributions
Capital Contributions
Interest Income
Total

2009
Actual
182,534
266,901
75,587
59,689
21,866
7,153
76,781
17,251
707,763

2010
Actual
198,329
272,161
73,125
59,744
23,243
12,087
30,518
13,096
682,304

2010
Budget
210,367
266,416
73,500
58,535
22,475
2,209
50,152
24,489
708,143

Actual/Budget
Var. $
Var. %
(12,038)
-5.7%
5,745
2.2%
(375)
-0.5%
1,209
2.1%
768
3.4%
9,878
447.2%
(19,634)
-39.1%
(11,393)
-46.5%
(25,839)
-3.6%

Expenses
O&M Expense
Depreciation
Revenue Bond Interest Expense
GO Bond Interest Expense
PFC Bond Interest Expense
Non-Op Environmental Expense
Public Expense
Misc. Non-Op Rev/Expense
Total

245,767
157,068
121,148
15,785
10,956
14,676
20,370
10,004
595,773

253,195
160,775
135,277
17,463
10,187
22,828
25,085
8,988
633,798

262,696
158,575
150,070
14,432
10,497
20,000
39,464
2,217
657,951

9,501
(2,200)
14,793
(3,031)
310
(2,828)
14,379
(6,771)
24,153

3.6%
-1.4%
9.9%
-21.0%
3.0%
-14.1%
36.4%
-305.3%
3.7%

Change In Net Assets

111,989

48,506

50,192

(1,686)

-3.4%

($ in 000s)

7

Capital Spending by Division
Division

2009
Actual

2010
2010 Budget Plan of
Actual Budget Variance Finance

191.5
44.7
74.0
7.7
317.9

183.6
11.2
4.0
3.8
202.6

($ in millions)

Aviation
Seaport
Real Estate
Corporate
Total

247.6
30.9
11.8
16.7
306.9

64.0
19.7
7.8
12.8
104.3

275.8
30.6
12.1
10.5
329.1

8

2010 Performance Report
Aviation Division

9

Aviation Business Highlights
• Airline activity:
- Enplanements up 1.06% from 2009, with positive YOY
enplanements since June

• Operating budget:
- Total O&M expenses are 2.2% below budget due to savings of
benefits and Corporate allocations

• Non-airline NOI:
- $2.6 million over budget; primarily due to cost savings
- Revenues favorable $290K - strong Concessions offset negative
variances in public parking and rental cars

• Airline cost per enplanement (CPE) of 11.63 vs. budget of
$12.69
• Capital spending at 74.2% of 2010 annual budget
10

Strategic Initiatives
• Customer Service:
- New service to Osaka started in June
- Initiated terminal realignment with airline agreement
• Non-Aeronautical Business:
- New concession agreements with taxis and limousine service
• Environmental Leadership:
- Completed design and initiated construction on PC Air project
- Secured grants for electric ground service equipment project
• Supportive Community:
- Executed voluntary runway use plan with FAA
• Employee Development:
- Completed internal internship program with eight interns
• Asset Management - South Satellite as prototype
11

Activity

Figures in 000s

Enplanements
Landed Weight

•
•
•

2009
Q4
3,686
4,792

2010
Q4
3,842
4,874

%
Variance
4.2%
1.7%

2009
Actual
15,610
20,388

2010
%
Actual Variance
15,773
1.0%
19,786
-3.0%

Enplanements growth of 1.0% over 2009 actual, up from forecast of 0.5%.
Landed weight in 2009 (March & April) included 267 wide-body cargo
diversions from Anchorage due to volcanic activity.
Q4 landed weight showed positive growth - airlines adding capacity
12

Division Summary
2008
Actual

2009
Actual

2010
Actual

2010
Budget

Actual/Budget
Var $
Var %

Operating Revenues
Aeronautical

204,361

182,534

198,329

210,367

(12,038)

-5.7%

Non-Aeronautical

150,528

137,348

135,418

135,128

290

0.2%

3,440

8,359

8,426

8,803

(377)

-4.3%

Operating Revenues

358,329

328,241

342,173

354,299

(12,126)

-3.4%

Operating Expenses

192,641

175,482

177,871

182,075

4,203

2.3%

2,542
-

1,991
1,196
(4,016)

3,271
-

2,971
-

(300)
-

-10.1%
n/a
n/a

Total Operating Expenses

195,183

174,654

181,142

185,045

3,903

2.1%

Net Operating Income

163,146

153,587

161,031

169,254

(8,223)

-4.9%

Capital Expenditures

209,813

191,479

183,578

247,567

63,989

25.8%

Traffic
Enplanements
Landed Weight

16,085
21,516

15,610
20,388

15,773
19,786

15,361
20,364

412
(578)

2.7%
-2.8%

Key Measures
Non-Aero NOI ($ in 000s)
Passenger Airline CPE
Total Operating Cost / Enpl
Debt Service Coverage

86,474
11.89
12.13
1.40

81,159
10.92
11.19
1.41

78,203
11.63
11.48
1.39

75,688
12.69
12.05
1.35

2,515
1.06
0.56
0.04

3.3%
8.3%
4.7%
2.6%

$ in 000's

Other

Environmental Remediation Liability
VSP, HR10 & Unemployment
OPEB Reversal

•

Exceeded budget for all key performance measures

13

Operating Expense
2008
Actual

2009
Actual

2010
Actual

2010
Budget

Actual/Budget
Var $
Var %

Total Operating Revenues

358,329

328,241

342,173

354,299

(12,126)

-3.4%

Operating Expenses
Salaries & Benefits
Outside Services
Utilities
VSP, HR10 & Unemployment Savings
OPEB Reversal
Environmental Remediation Liability
Other Expenses
Baseline Airport Expenses
Corporate Expenses
Police Expenses
Capital Development/Other Expenses

89,458
31,928
12,636
2,542
6,135
142,699
34,940
15,287
2,257

80,804
21,509
13,209
1,196
(4,016)
1,991
8,183
122,877
31,181
14,461
6,135

76,036
22,519
11,381
3,271
13,275
126,481
32,558
14,317
7,785

78,103
24,848
12,762
2,971
9,063
127,745
34,776
15,170
7,354

2,067
2,329
1,381
(300)
(4,212)
1,264
2,217
853
(431)

2.6%
9.4%
10.8%
n/a
n/a
-10.1%
-46.5%
1.0%
6.4%
5.6%
-5.9%

Total Operating Expenses

195,183

174,654

181,142

185,045

3,903

2.1%

Net Operating Income

163,146

153,587

161,031

169,254

(8,223)

-4.9%

$ in 000's

•

Operating expense is $3.9 million favorable.
- Savings are from payroll benefits $2.0M, utilities commodities $1.4M, International
Lounge expenses $390K, deferral of South Access Study $450K, FTE vacancies
$218K and Corporate and Police allocations $3.0M.
- Budget deficits are from back-up power generators not budgeted for Fall season
$1.6M, litigated injury and damages claims $1M, janitorial contract cost of living
increase $255K, unemployment benefits $400K, and B&O taxes $530K.
14

Aeronautical Business
$ in 000's

2008
Actual

2009
Actual

2010
Actual

2010
Budget

Actual/Budget
Var $
Var %

Revenues requirement:
Capital Costs

81,535

72,013

82,083

92,610

10,527

11.4%

Operating Costs net Non-Aero

131,024

118,456

122,985

125,605

2,620

2.1%

212,559

190,469

205,067

218,215

13,147

6.0%

FIS Offset

(5,250)

(5,250)

(7,000)

(7,000)

-

0.0%

Other Offsets

(15,686)

(16,441)

(14,825)

(15,062)

(237)

-1.6%

Net Revenue Requirement

191,623

168,778

183,243

196,153

12,911

6.6%

Other Aero Revenues

12,738

13,757

15,087

14,215

(871)

-6.1%

204,361

182,534

198,329

210,369

12,039

5.7%

Less: Non-passenger Airline Costs

13,039

12,074

14,885

15,485

(599)

-3.9%

Net Passenger Airline Costs

191,323

170,460

183,444

194,884

12,639

6.5%

Total Costs

Total Aero Revenues

•

•

Airline revenues based on cost recovery.
•
Landing Fee revenues were less than budget due to savings from not utilizing
commercial paper financing $2M, operating costs $900K, and ramp tower $1M.
•
Terminal Rental revenues lower than budget due to savings from lower interest rate
of variable rate bonds.
Operating costs lower due to cost savings from payroll benefits and Corporate allocations.
15

Aeronautical Key Indicators
2008

2009

2010

2010

Actual/Budget

Actual

Actual

Actual

Budget

Var $

Var %

Cost Per Enplanement:
Capital Costs / Enpl

5.22

4.61

5.20

6.03

0.83

13.7%

Operating Costs / Enpl

8.39

7.59

7.80

8.18

0.38

4.6%

Offsets

(1.30)

(1.39)

(1.38)

(1.44)

(0.05)

3.7%

Other Aero Revenues

0.79

0.88

0.96

0.93

(0.03)

-3.4%

Non-passenger Airline Costs

(0.84)

(0.77)

(0.94)

(1.01)

(0.06)

6.4%

11.89

10.92

11.63

12.69

1.06

8.3%

Passenger Airline CPE

• Actual passenger airline cost per enplanement (CPE) came in
at $11.66, forecasted at $11.99.
• If enplanements equal to budget, CPE would be $11.98.

16

Non Aeronautical Business
$ in 000's
Revenues:
Public Parking
Rental Cars
Concessions
Other

2008
Actual

2009
Actual

2010
Actual

2010
Budget

Actual/Budget
Var $
Var %

59,111
35,592
33,181
22,644

49,688
33,321
33,482
20,858

49,416
30,309
33,765
21,929

51,812
31,014
29,953
22,350

(2,396)
(705)
3,812
(421)

-4.6%
-2.3%
12.7%
-1.9%

Total Revenues

150,528

137,348

135,418

135,128

290

0.2%

Operating Expense

61,279

55,916

54,743

56,732

1,988

3.5%

Share of terminal O&M
Less utility internal billing
Net Operating & Maint
Net Operating Income

16,396
(13,515)
64,160
86,367

17,011
(16,738)
56,189
81,159

16,935
(14,464)
57,215
78,203

17,174
(14,466)
59,440
75,688

238
2
2,225
2,515

1.4%
0.0%
3.7%
3.3%

•
•
•
•
•

Public Parking actual variance of $2.4M is better than forecasted of $5M below budget. Growth
in 1-4 day transactions.
Rental Car revenues were budgeted using higher industry gross sales.
Concessions revenues were better than expected due to space rental income $1.1M, advertising
$500K, food & beverages $1.1M, retail/duty free $1M, Google Wi-Fi deal.
Other Non-airline revenues shortfall due to delay in South Access Planning study ($450K) and
Club International ($700K) offset by increase in ground transportation revenues from Yellow
Cab contract which began November 1.
Operating expense under spent due to outside services not utilized for the Club International
Lounge $512K.

Non Aeronautical Key Indicators
2008
Actual

2009
Actual

2010
Actual

2010
Budget

Actual/Budget
Var $
Var %

Revenues Per Enplanement
Parking
Rental Car
Concessions
Other
Total Revenues

3.67
2.21
2.06
1.41
9.36

3.18
2.13
2.14
1.34
8.80

3.13
1.92
2.14
1.39
8.59

3.37
2.02
1.95
1.45
8.80

(0.24)
(0.10)
0.19
(0.06)
(0.21)

-7.1%
-4.8%
9.8%
-4.4%
-2.4%

Primary Concessions Sales / Enpl

10.29

9.66

9.99

9.78

0.21

2.1%

• Concessions sales per enplanement was 10.32 for Q4.

18

Non Aeronautical Activity
2008
Actual
Garage Parking
Transactions: 0-3 Hours
Transactions: 3-24 Hours
Transactions: 1-4 Days
Transactions: +4 Days

2009
Actual

2010
Actual

2010
Budget

2010 Var
to Budget

2010 vs 2009 Yr to Yr
Actual
% Var

1,676,276
1,581,271
1,413,600
1,516,420
(102,820)
195,224
164,924
168,604
171,501
(2,897)
419,077
351,011
357,594
368,104
(10,510)
130,758
105,862
105,670
113,468
(7,798)
2,421,335
2,203,068
2,045,468
2,169,493
(124,025)
$ 53,548 $ 44,797 $ 45,060 $ 46,911 $ (1,851) $

(167,671)
3,680
6,583
(192)
(157,600)
263

-10.6%
2.2%
1.9%
-0.2%
-7.2%
0.6%

Rental Cars
Transactions Cars
Transactions Days
Revenue to Port ($000)

1,210,954
1,019,534
1,075,568
1,064,000
5,199,183
4,388,906
4,695,879
4,495,000
$ 28,474 $ 26,140 $ 23,129 $ 23,834 $

11,568
200,879
(705) $

56,034
306,973
(3,011)

5.5%
7.0%
-11.5%

Ground Transportation
Trips
Revenue to Port ($000)

2,145,898
1,919,508
1,790,374
1,949,389
(159,015)
$
4,691 $
4,629 $
4,814 $
4,432 $
383 $

(129,134)
185

-6.7%
4.0%

Primary Concessions
Sales
SPE
Revenue to Port ($000)

165,391,237 150,682,463 157,551,180 150,123,000 7,428,180.00 6,868,717.00
10.29
9.66
9.99
9.78
0.21
0.33
$ 22,594 $ 20,593 $ 21,617 $ 19,516 $
2,101 $
1,024

4.6%
3.4%
5.0%

Revenue to Port ($000)

Garage Parking
Transactions: Number of
vehicles paying to park in
the General & Direct
garage parking.
Revenue to Port:
Revenue from airport
garage parking (net of all
taxes).
Rental Cars
Revenue to Port: 10% of
gross sales generated by
rental cars (does not
include space rent).

Primary Concessions
Sales: Total sales
generated by the Primary
Concessionaires
(Food/Beverage and
Retail/Duty Free.)

19

Net Cash Flow: NOI After Debt Service & Interest Income
$ in 000's

2008
Actual

2009
Actual

2010
Actual

2010
Budget

Actual/Budget
Var $
Var %

Aeronautical
Net Operating Income (NOI)
Debt Service
NOI After Debt Service

72,583
78,526
(5,943)

65,985
68,767
(2,781)

74,402
73,080
1,323

84,763
83,607
1,156

(10,360)
10,527
167

-12.2%
12.6%
14.5%

Non-Aeronautical
Net Operating Income (NOI)
Debt Service
NOI After Debt Service

86,474
41,762
44,712

81,159
39,241
41,917

78,203
41,752
36,451

75,688
40,921
34,767

2,515
(830)
1,684

3.3%
-2.0%
4.8%

Fuel Hydrant Revenue

3,440

8,359

8,426

8,803

(377)

-4.3%

Total Aviation
NOI
Debt Service
NOI After Debt Service

162,496
120,288
42,208

155,503
108,008
47,495

161,031
114,831
46,200

169,254
124,528
44,726

(8,223)
9,697
1,474

-4.9%
7.8%
3.3%

11,462
(2,926)
50,745

8,853
(7,845)
48,503

6,297
(7,912)
44,585

7,065
(7,845)
43,946

(768)
(67)
639

-10.9%
0.8%
1.5%

Add ADF Interest Income
Less Non-Cash Fuel Hydrant Revenue
Net Cash Flow after D/S & Interest Inc.

•
•

In spite of negative variance for NOI, NOI after debt service and net cash flow show
positive variances.
Savings in aeronautical debt service reduce NOI due to cost recovery nature of revenue
formulas.
20

Capital Spending

$ in 000's
Rental Car Facility
All Other

•

2010
Actual
143,076
40,502
183,578

2010
Budget
174,699
72,868
247,567

Actual/Budget
Var $
Var %
31,623
18.1%
32,366
44.4%
63,989
25.8%

2010
Plan of
Finance
157,818
118,014
275,832

Rental Car Facility:
• $10M in savings due to favorable bids on the Off-site Roadway
Improvement (ORI), Bus Maintenance Facility (BMF) and Bus Purchases.
• Turner's construction expenditures have lagged behind the cash flows
they provided because ORI, BMF and Main Terminal Improvements
projects have experienced schedule delays.

21

2010 Performance Report
Seaport Division

Seaport Business Goals
Provide Compelling Value and Asset Utilization
• TEU volume was a record 2,140K TEU's, up 35.0% from
2009 and surpassing previous high volume set in 2005.
• Grain volume at 5.5 million metric tons or 10% over 2010
budget.
• Cruise passengers and sailings also set a new record
931,698 passengers and 223 sailings.
• Inaugural year for use of Smith Cove Cruise Terminal as
an event site.
• Executed new lease with PCC Logistics at Terminal 104.
• Louis Dreyfus exercised option for 5 year lease extension
at Terminal 86.
23

Seaport Organizational Goals
Environmental Stewardship
• Continuing implementation of Northwest Ports Clean Air
Strategy.
- 72% of frequent calls meeting Northwest Ports Clean
Air Standards target
- Drayage truck registry launched in Q3: More than
6,000 trucks registered. 270 pre 1994 trucks scrapped
since program inception
- Clean Air Truck program successfully implemented at
terminal gates on January 1, 2011
• AAPA award for Environmental Compliance Assessment
Program
24

Seaport Organizational Goals
Regional Transportation
• Authorization of $3.4 million investment in the Spokane
Street Widening project.

• Closely monitored south harbor road construction projects
and detour routes.

25

Seaport 2010 Operating Results
$ in 000's

2009
Actual

2010
Actual

2010
Budget

2010 Bud Var
$
%

Operating Revenue

89,844

96,060

90,134

5,925

7%

Security Grants

847

1,791

2,535

(744)

-29%

Total Revenue

90,691

97,850

92,669

5,181

6%

Direct Expenses

25,108

20,780

22,698

1,918

8%

Security Grant Expense

860

1,983

2,689

706

26%

Envir Remediation Liability

24

1,170

1,500

330

22%

Allocations

14,553

15,387

16,437

1,050

6%

Total Expense

40,545

39,321

43,324

4,004

9%

Net Operating Incom e (NOI)

50,145

58,530

49,345

9,185

19%

26

Seaport Division Key Variances
Revenue Detail ($ in 000's)
2010 Business Unit Results

Variance to Budget
Better (Worse)

Containers

$4,843

Support Properties

($362)

Cruise

$1,359

Grain

$502

Docks/Industrial Properties

$1,183

Security

($744)

Environmental Grant

($1,600)

Total

$5,181
27

Seaport Division Key Variances
Expense Detail ($ in 000's)
2010 Expenses

Variance to Budget
Better (Worse)

Outside Services

$1,104

Corporate

$1,225

Security Grant Expense

$706

Salaries and Benefits (Seaport)

$415

Envir Remediation Liability

$330

CDD

($280)

All Other

$504

Total Expense

$4,004
28

Seaport Business Groups
NOI Before Depreciation ($'s in Millions)
2010
Actual NOI

Variance to Budget
Better (Worse)

Containers

$44.5

$6.8

Container Support Props

$ .6

($ .4)

Cruise

$7.0

$1.9

Grain

$4.9

$ .6

Docks/Indust Props

$4.1

$ 1.4

Security

($1.4)

$ .1

Envir Remediation Liability

($1.2)

($1.2)

Total Seaport

$58.5

$9.2
29

Seaport Capital 2010
$'s in Millions

Actual

Approved
Budget

Variance
to
Budget

Actual as
% of App.
Bud

Plan of
Finance

$11.2

$30.8

$19.6

36%

$30.6

30

2010 Performance Report
Real Estate Division

Real Estate 2010 Key Events
• Exceeded 2010 Net Operating Income Budget by $1.5
million:
 Revenue $22K favorable to budget
 Expenses $1,457K favorable to budget

• Vessel liability insurance requirement in effect at
Fishermen's Terminal & all recreational facilities.
Monitoring/tracking procedure in place for 2,000+
customers. 100% compliance at year-end.
• Executed new lease with Arctic Storm Management
group at Pier 69.

32

Real Estate 2010 Key Events
• Changed Portside Café from 3rd party management
agreement to leased property.
• 2010 event activity for BHICC, MEC and SCCT, as
measured by number of attendees/guests, was 26%
over budget and 23% over 2009.
• Eastside Rail Corridor
 100% complete with first round of billings
 Closed sales on portions to City of Redmond and Puget Sound
Energy

• Over $1.2 million in projects completed on Deferred
Maintenance Correction Program.
33

Real Estate 2010 Key Events
• Electrical consumption at Pier 69 headquarters was the
lowest recorded in the history of the building. 50%
reduction in consumption compared to 2000.
• Reached settlement with the City of Des Moines
regarding South Correctional Entity (SCORE) jail facility.

34

Real Estate Business Goals
Provide Compelling Value and Asset Utilization
• Occupancy Rates: Commercial property at 88%
occupancy, below target of 90% and above 2010 Q4
local market average of 84%.

• FT/Marina Occupancy: Recreational Marinas
average occupancy was at target of 94%. Fishing and
Commercial was at 87%, above target of 78%.

35

Real Estate Division 2010 Operating Results

$ in 000's

2009
Actual

2010
Actual

2010
Budget

Operating Revenue

30,132

29,820

29,798

22

0%

Total Revenue

30,132

29,820

29,798

22

0%

Direct Expenses

27,525

29,502

30,949

1,447

5%

Divisional Allocations

(3,200)

(3,485)

(3,802)

(317)

-8%

Corporate Allocations

5,244

5,481

5,808

327

6%

Total Expense

29,569

31,499

32,956

1,457

4%

563

(1,678)

(3,158)

1,479

47%

Net Operating Incom e (NOI)

2010 Bud Var
$
%

36

Real Estate Division 2010 Key Variances
Revenue Detail ($ in 000's)
2010 Business Unit

Variance to Budget
Better (Worse)

Recreational Boating

$28

Fishing & Commercial

$260

Commercial Properties

($405)

Third Party Management

$358

RE Development & Planning

$6

Eastside Rail

($41)

Facilities/Maintenance

($184)

Total

$22
37

Real Estate Division 2010 Key Variances
Expense Detail ($ in 000's)
2010 Expense

Variance to Budget
Better (Worse)

Third Party Management

$635

Salaries and Benefits (Real Estate)

$541

Outside Services

$457

Corporate

$437

Maintenance Expense

$419

Litigated Damages

($470)

Utilities

($255)

All Other

($307)

Total Expense

$1,457
38

Real Estate Business Groups
NOI Before Depreciation ($ in 000's)
2010
Actual NOI

Variance to Budget
Better (Worse)

Recreational Boating

$1,878

$642

Fishing & Commercial

($2,543)

$571

Commercial & Third Party

$212

$648

RE Development & Planning

($591)

($105)

Eastside Rail

($637)

($279)

$2

$2

($1,678)

$1,479

Envir Remediation Liability
Total Real Estate

39

Real Estate Capital 2010
$ in Millions

Actual

Approved
Budget

Variance
to
Budget

Actual as
% of App.
Bud

Plan of
Finance

$4.0

$11.8

$7.8

34%

$12.1

40

2010 Performance Report
Capital Development Division

Capital Development Division
2010 Business Events
• RCF, PC Air, 16C, Escalators, Parking Revenue, eGSE,
Backup Power
• AVPMG reorganization
• CPO Training, P-Card, Public Users' Forum, Auction
• Engineering position refresh, Water Tower upgrade
• PCS Generators, Demolitions, Move from Kilroy to AOB
• T115, Mooring Dolphins, EMWGS, T86, T91, T5, T18
• Revisions to Overhead and Capitalization
42

Capital Development Division
Key Indicators continued
CDD Construction Soft Costs %
100%
90%

19%

19%

21%

20%

20%

81%

81%

79%

80%

80%

80%
70%
60%
50%
40%

Total Soft Costs
Total Construction Costs

30%
20%
10%
0%
Q2 2009 - Q1 2010 Q3 2009 - Q2 2010 Q4 2009 - Q3 2010 Q1 2010 - Q4 2010 Q1 2008 - Q4 2010
(36 month average)

43

Capital Development Division
Key Indicators
Completed Projects
Q4 2010

Completed Projects
Summary

10%

20%

8%

15%

6%

10%

7.0%

4%

5%

2%
1.3%

0%

4.7%
7.7%

5.75%

2009
(23 Projects)

2010
(11 Projects)

0%

2010 Airport Improvement Projects - Contract 1

Mandatory Change

6.2%

Discretionary Change

Mandatory Change

Discretionary Change

Cost Growth During Construction

44

Capital Development Division
Key Indicators continued
Completed Projects
Q4 2010

Completed Projects
Summary
100%

15%
10%
5%
0%
-5%
-10%
-15%

80%
60%
40%
-14.2%

20%

62.2%

69.4%

2009
(23 Projects)

2010
(11 Projects)

$365,794,281

$65,227,922

0%
2010 Airport Improvement Projects - Contract 1
$2,876,365.00

Project
Value

Cumulative
Value

Project Schedule Growth
Project

4thQuarter 2010
2010 Airport Improvement Projects - Contract 1

Original
Non-Discretionary
Construction
Change
Contract Amount

$2,876,365.00

1.3%

Discretionary
Change

7.0%

Initial Commission
Planned
Authorized Start of
Substantial
Design
Completion of
Construction
1-Jun-09

31-Dec-10

Actual
Substantial
Completion of
Construction

Schedule
Growth

10-Oct-10

-14%

45

2010 Cost and Schedule Growth
Project

Original
Non-Discretionary Discretionary
Construction
Change
Change
Contract Amount

Initial
Commission
Authorized Start
of Design

Planned
Actual
Substantial
Substantial
Completion of Completion of
Construction Construction

Schedule
Growth

1st Quarter 2010
Trash Handling and Recycling

$269,101.00

11.3%

-0.8%

22-Apr-08

30-May-09

26-Feb-10

67%

Duwamish Trail Link

$263,865.85

-3.9%

-5.5%

25-Jul-00

31-Dec-01

15-May-09

514%

T-91 Cruise Terminal Bird Control

$189,000.00

0.0%

0.0%

14-Apr-09

12-Dec-09

26-Dec-09

6%

2nd Quarter 2010
North/South Satellite Food Court
Flooring*
Main Terminal Fire Piping Upgrades*

$918,000.00

20.4%

40.0%

1-Jul-07

30-Jun-08

15-Mar-10

171%

$237,233.00

-4.2%

0.0%

1-Sep-08

31-Mar-10

22-Apr-10

4%

2nd Floor HVAC Project

$790,000.00

14.5%

0.0%

1-Apr-08

28-Feb-10

9-Apr-10

6%

AV Warehouse

$4,660,754.00

9.3%

7.2%

1-Apr-08

28-Feb-10

23-Mar-10

3%

4th Floor Walkway Project

$571,900.00

18.2%

0.0%

1-Feb-06

31-Jul-09

9-Feb-10

15%

3rd Quarter 2010
Pedestrian Bridge

$2,851,000.00

1.6%

3.8%

26-May-06

17-Dec-09

4-Mar-10

6%

2009 16L/34R Reconstruction

$51,600,702.90

-5.2%

0.3%

26-Feb-08

31-Dec-09

1-Oct-09

-14%

4th Quarter 2010
2010 Airfield Improvement Projects Contract 1
2010 Total/Averages

$2,876,365.00

1.3%

7.0%

1-Jun-09

31-Dec-10

10-Oct-10

-14%

$65,227,921.75

5.75%

4.73%

69.45%

* % of Non-Discretionary and Discretionary Change has been corrected from the values reported previously.

46

Capital Development Division
Key Indicators continued
Small Business Participation
Major Public Works
14%

86%

Small
Business
$10,869

Large
Business
$64,425

Small Works

Goods & Services
Small
Business
$3,768

17.0%

83.0%

Large
Business
$770

14%

86%

Small
Business
$7,553

Large
Business
$48,064

47

Capital Development Division
Key Indicators continued

•
•
•
•
•

Customer Score Card

Environmental

Total Projects
19
Scorecards Received 15
Total Points
370
Total Score
321.16
Average Score (%) 86.8%

• Total Applicable Projects: 19
• Total Environmental
incorporated or pending: 16
• Average:
84.2%

48

Capital Development Division
Key Indicators continued
Safety

2010

2009

• Total Points
2,595.0
• Total Score
2,395.8
• Average Score (%) 92.5%
• Contract TRIR
5.4
• Contract LTIR
0

1910.0
1724.5
90.2%
1.8
0.4

49

Capital Development Division
Key Indicators continued
2010 Procurement Schedule:
Total Time RFS to Execution (Avg # Days)
• Good & Services
• Major Public Works
• Small Works
• Service Agreements

81 days
62 days
56 days
256 days

50

Capital Development Division
Gross Operating Results
$ in 000's

Notes

Total Revenues
EXPENSES BEFORE CHARGES TO CAPITAL PROJECTS
Capital Development Administration
Engineering
Port Construction Services
Central Procurement Office
Aviation Project Management
Seaport Project Management
Total Before Charges to Capital Projects

2009 YTD
Actual
-

340
9,984
7,354
3,224
5,554
2,735
29,192

2010 YTD
Actual Budget
36

380
9,963
7,886
3,287
5,134
2,693
29,343

2010 Bud Var.
$
%

-

36

0.0%

387
13,574
8,552
4,171
6,150
2,672
35,505

7
3,611
666
884
1,016
(21)
6,163

1.8%
26.6%
7.8%
21.2%
16.5%
-0.8%
17.4%

51

Capital Development Division
Key Variances to Net Budget
2010 Expenses

Variance to Budget

YTD Var. F/(UNF)

$ in 000's

Better (Worse)

%

Salaries and Benefits

5,819

20.2%

Outside Services

(1,199)

(53.4)%

Travel and Other

123

34.9%

Telecommunications

82

42.0%

Property Rentals

199

41.8%

General Expenses

1,322

73.0%

All Other

(184)

(11.4) %

(6,600)

24.8%

(437)

(4.9)%

Charges to Capital Projects
Total

52

2010 Performance Report
Corporate

Corporate 2010 Key Events
• Completed and unfolded the Port's Centennial Website with map,
timeline and stories of the Port.
• Implemented Workplace Responsibility Program.
• Finalized the medical and dental third party administration contracts for
the Port's self funded benefit program.
• Selected a vendor for redesigning the Port's internet website.
• Received "Certificate of Achievement for Excellence in Financial
Reporting" from GFOA.
• Filed the 2011 statutory budget with King County.
• Completed bonds refunding for $29.7 million present value savings.

54

Corporate 2010 Key Metrics
•
•
•
•
•
•
•
•
•
•
•

Wellness Reward participation rate was 98%.
530 employees participated in 19 onsite Spirit and Wellness classes.
Port website received 9.8 million visits.
97% completed Health Assessment.
Responded to 281 public disclosure requests.
95% of ICT projects completed on budget.
Negotiated 4 labor contracts, 9 MOU's and 1 PLA.
Presented 16 internal audit reports to the Audit Committee.
Handled 28 litigation and claims.
1,162 small businesses registered on the roster.
Received 58,741 calls for Police services.

55

2010 Corporate Operating Results
2009
Actual

$ in 000's
Total Revenues
Executive
Commission
Legal
Risk Services
Health & Safety Services
External Affairs
Economic & Trade Development
Human Resources & Development
Labor Relations
Information & Communications Technology
Finance & Budget
Accounting & Financial Reporting Services
Internal Audit
Office of Social Responsibility
Police
Contingency
Total Expenses

$

$

374 $

2010
Actual
610 $

2010
Budget

2010 Bud Var.
$
%

18 $

592

3289.4%

1,551
1,356
1,536
750
831
868
2,702
3,475
3,613
2,526
2,618
2,859
913
1,001
1,095
4,918
5,553
6,002
1,441
3,913
4,107
4,988
542
675
784
17,505
18,765
19,033
1,635
1,455
1,529
5,836
5,939
6,716
978
990
1,109
1,431
1,280
1,458
18,409
19,273
20,314
420
21
55
65,481 $ 67,391 $ 71,958 $

181
37
137
241
94
449
881
109
268
74
777
119
178
1,040
33
4,567

11.8%
4.3%
3.8%
8.4%
8.6%
7.5%
0.0%
17.7%
14.0%
1.4%
4.8%
11.6%
10.8%
12.2%
5.1%
60.8%
6.3%
56

Corporate Major Expense Variances
Actual/Budget
Operating Expenses ($ in 000's)

Var. $

Var. %

Salaries & Benefits

921

2.7%

Wages & Benefits

973

5.4%

1,072

31.7%

(378)

-30.5%

1,864

15.7%

Travel & Other Employee Exps

182

8.4%

General Expenses

400

14.5%

Other

231

11.2%

Charges to Capital Projects

(698)

-19.3%

4,567

6.3%

Payroll to Capital Projects
Equipment Expense
Outside Services

Total

57

2010 Financial Performance
Port of Seattle

March 1, 2011