ITEM NO. _7b_Supp________ DATE OF MEETING: Sept 27, 2011 Aviation Division 2012 Capital Budget Commission Briefing September 27, 2011 1 Presentation Overview • Airline industry status & implications for Sea-Tac • Sea-Tac Airport Status • Capital budget drivers • Historical spending • Proposed new projects • Capital projects by strategic driver 2 Industry Status/Trends • Domestic airline industry was profitable in 2010, forecasting near breakeven for 2011 - IATA forecasting global industry profit of $6.9 billion in 2011 • Fuel costs are high (near 2008 levels), yet Industry has figured out how to survive: - Focus on profit, not market share • Unprofitable routes eliminated - Seasonal capacity changes, very high load factors - Consolidation - Ancillary fees • Industry expert predicts limited domestic growth, but there will be winners and losers among airports - Large hubs with limited regional competition and international connections will likely see growth 3 Implications for Sea-Tac • Sea-Tac will likely see growth in spite of economic uncertainty - SEA is a large hub, has international connections, and has limited competition • Very resilient market - "Only" 3% drop in traffic during Great Recession • Alaska Airlines is profitable and growing - Record earnings for 2011 YTD - Highest enplanement growth among U.S. airlines for January - June 2011 (10.7%) • Implications: Need to plan for growth 4 Sea-Tac Status • Positive enplanement growth each month since June 2010 • Strong YTD enplanement growth through July 2011: + 4.6% - International +7.0% • Forecasting growth of 3.5% for 2011 - Exceeding last year's 2011 growth forecast of 1.0% • BIG QUESTION: Future of economy and effect on future air travel 5 Enplaned Passengers • Traffic dropped 3% in recent recession, pointing out resiliency of market demand • Faster recovery than after 2001 • Assumptions: 19,000 18,000 17,000 16,000 15,000 14,000 13,000 12,000 11,000 10,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 - - - - 2011: 3.5% 2012: 1.5% 2013: 2.2% 2014+: 2.2% 6 Capital Budget Drivers New Projects are driven by Century Agenda: 25 Year Strategic Goals • Fully meet the region's air transportation capacity needs (Passenger and Cargo Projects) • Make Seattle-Tacoma International Airport the west coast "Gateway of Choice" for international travel (FIS and common use technology projects) • Double the number of international flights and destinations (FIS) • Be a catalyst for this region as a premiere destination for tourists from Asia, Europe, and other targeted international areas (FIS) 7 Capital Budget Drivers Meet the region's Air Transportation Capacity needs for next 25 years: 5 year Strategic Milestones: - Complete STIA Master Plan (Airfield, Terminal, Landside) - considering other regional airports - Utilize technology to increase capacity (2-step ticketing, common use kiosks, self bag tagging) - Evaluate on-site hotel development 8 Capital Budget Drivers Make STIA the Gateway of Choice for Int'l Travel 5 year Strategic Milestones: - Complete Mid-Term Improvements to FIS to increase capacity ($37 million) - Plan, Design, and begin Construction of new FIS ($200-400 million) - Make Baggage Improvements to reduce time between flights for connecting passengers ($20-30 million) 9 Capital Budget Drivers Double the Number of Int'l Flights and Destinations 5 year Strategic Milestones: - Attract and launch new services to Shanghai, Hong Kong, and the Middle East (mid-term and new FIS) - Attract and launch added service in two existing markets (mid-term and new FIS) 10 Capital Budget Drivers Sea-Tac Strategic Goals: 1. Operate a world-class international airport by: - Ensuring safe and secure operations - Meeting needs of our tenants, passengers and the region's economy - Managing our assets to minimize the long-term total cost of ownership 2. Become one of the top ten customer service airports in the world by 2015 (measured by the ACI ASQ index) 3. Lead the airport industry in environmental innovation and minimize the airport's environmental impacts 4. Reduce airline costs (CPE) as far as possible without compromising operational and capital needs 11 Capital Budget Drivers 5. Maximize non-aeronautical net operating income (NOI) consistent with current contracts, appropriate use of airport properties and market demand 6. Continually invest in a culture of employee development, organizational improvement, and business agility 7. Develop valued community partnerships based on mutual understanding and socially responsible practices 12 Airline Realignment Projects Direct Capital Projects Concourse D Common Use Expansion Passenger Loading Bridges Baggage Modifications Exterior Gate Improvements Airport Signage $30-35 million Linked Capital Projects $70+ million North Satellite Improvements, Seismic, HVAC, Club Structure Concourse C Improvements North Checkpoint Reconfiguration Expense Projects Tenant improvements $20-25 million Future Capital Projects $TBD North Satellite Expansion, etc. Page 13 Capital Spending: 2000 - 2010 Capital Spending 450 400 350 300 250 200 150 100 50 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 14 Capital Budget: 2011 - 2016 400 350 BP Prospective 300 Committed 250 200 150 100 50 2011 2012 2013 2014 2015 2016 15 Projects Proposed for Approval Figures in $000s AERONAUTICAL PROJECTS: Safe and Secure Operations Bollards for Upper & Lower Drive Doors 500 Capacity Needs of Tenants, Passengers, and Region Snow Removal Equipment New Window Wall Kiosks at Ticket Zone 1 Convert Ticket Zone 2 to a "Pushback" Convert Ticket Zone 3 FlowThru Cargo 6 Enhancements South Access Property Acq. Perm Emergency Back-up Power 2,000 5,566 10,669 32,000 5,550 1,500 30,238 Manage Facility Assets Fire Station Electrical Service Upgrade Facility Monitoring System Renewal Mechanical Controls System Improvements 2,030 5,000 1,800 Top Ten Customer Service Airport in World Security Checkpoint Electronic Wayfinding Laptop Power Plugs in Concourses 900 3,000 Reduce Ariline Costs as far as possible Lighting Upgrades for Energy Efficiency Rubber and Paint Removal Equipment IWS sensors to allow high BOD Segregation 3,000 600 1,000 NON-AERONAUTICAL (NOI) PROJECTS: Manage Facility Assets Paving Improvements at Port Surface Parking Lot (D Fox) 1,665 16 Capital Budget By Strategic Driver CIP Category 2011 Estimate 2012 2013 2014 2015 2016 Total 2012-16 Committed BP Prospective Total 184,783 5,935 190,718 270,043 75,004 345,047 117,796 174,684 292,480 43,474 134,489 177,963 3,528 49,182 52,710 9,500 211,971 221,471 444,341 645,330 1,089,671 Strategic Driver Safety & Security Capacity & Customer Manage Assets Customer Service Environmental Reduce CPE Non-Aeronautical Community Partnership Subtotal 2,328 121,232 28,380 5,991 1,614 21,571 1,726 4,832 187,674 6,115 147,100 81,796 17,546 500 52,715 7,252 15,660 328,684 4,846 133,932 94,206 3,500 500 17,326 6,933 6,317 267,560 4,770 54,959 60,409 1,304 385 3,500 242 18,967 144,536 2,740 3,288 15,146 500 21,674 12,000 83,971 500 96,471 18,471 351,279 335,528 23,350 1,385 73,541 14,427 40,944 858,925 Allowances 3,044 16,363 24,920 33,427 31,036 125,000 230,746 Total 190,718 345,047 292,480 177,963 52,710 221,471 1,089,671 17 Safe and Secure Operation Description North Satellite Seismic Access Control Door Additions ALCMS Upgrades Additional AF Mitigation at Ty Emergency Lighting - Parking Bollards for U&L Drive Doors Lagoon 3 Bird Wires Security Checkpoint Cameras All Other Total 2011 Estimate 25 230 921 179 75 20 400 478 2,328 2012 450 1,570 1,189 500 600 500 366 100 840 6,115 2013 2,200 119 2,527 4,846 2014 4,770 4,770 2015 2,740 2,740 2016 - Total 2012-16 10,160 1,570 1,189 619 600 500 366 100 3,367 18,471 18 Capacity & Customer Needs Description Aircraft RON Parking USPS Site Convert Ticket Zone 3 FlowThru FIS Improvements- Phase 1 Perm Emergency Back-up Power Terminal Realignment Cargo 2 West Cargo Hardstand PLB Replacement-AR Convert Ticket Zone 2 Pushback New Window Wall Ticket Zone 1 Cargo 6 Enhancements Snow Removal Equipment - 2013 South Access Property Acq. Airport Owned Gate Infrastruct All Other Total 2011 Estimate 350 119 2,441 1,443 116,879 121,232 2012 4,750 1,000 14,000 2,000 8,000 100 10,909 1,000 750 550 100 1,500 1,316 101,125 147,100 2013 30,566 26,000 17,581 7,000 11,000 2,200 1,500 8,000 4,750 4,900 1,900 18,535 133,932 2014 3,000 5,000 21,238 5,027 11,000 1,669 66 100 7,859 54,959 2015 - 2016 - 3,288 3,288 12,000 12,000 Total 2012-16 38,316 32,000 31,581 30,238 24,027 13,300 12,409 10,669 5,566 5,550 2,000 1,500 1,316 142,807 351,279 19 Managing Facility Assets Description Terminal Escalators Modn SSAT HVAC,Lights,Ceiling Repl Airfield Pavement Replacement Vertical Convey Modn Aero Ph2 8th Floor Weather Proofing Vertical Convey Modn Aero Ph1 Facility Monitoring Sys Renewl Service Tunnel Renewal/Replace 2011-2013 Roof Replacement Pro Fire Dept Facility Upgrade Fire Station Elec Service Upgr Airportwide Mech Controls Sys Doug Fox Site Improvements All Other Total 2011 Estimate 7,419 125 4,611 300 2,423 232 25 204 5 13,036 28,380 2012 17,000 3,000 2,100 5,000 10,482 7,454 1,000 1,000 4,577 500 500 250 365 28,568 81,796 2013 6,300 15,000 23,901 9,000 2,506 2,500 1,200 3,000 1,530 1,550 1,295 26,424 94,206 2014 14,106 9,371 5,432 1,500 2,500 27,500 60,409 2015 275 14,871 15,146 2016 83,971 83,971 Total 2012-16 37,406 27,371 26,001 19,432 10,482 9,960 5,000 4,975 4,577 3,500 2,030 1,800 1,660 181,334 335,528 20 Customer Service Description Loading Bridges Utilities FIMS Phase II Laptop Power in Concourses Security Checkpoint Wayfinding All Other Total 2011 Estimate 167 2,562 3,262 5,991 2012 10,907 4,214 300 400 1,725 17,546 2013 2,200 500 800 3,500 2014 500 804 1,304 2015 500 500 2016 500 500 Total 2012-16 10,907 4,214 3,000 900 4,329 23,350 21 Reduce Airline Costs Description EGSE Rolling Stock Cent Plant Preconditioned Air GSE Electrical Chrg Stations Airport Owned Gate Infr II Lighting Upgrades for Energy E Stage 2 Mech Energy Implement IWS BOD Segregation Improvemen Rubber and Paint Removal Equip All Other Total 2011 Estimate 5,059 15,078 371 20 1,043 21,571 2012 24,941 15,653 6,000 2,000 300 2,000 200 600 1,021 52,715 2013 5,332 7,924 2,000 1,200 70 800 17,326 2014 2,000 1,500 3,500 2015 - 2016 - Total 2012-16 24,941 20,985 13,924 6,000 3,000 2,070 1,000 600 1,021 73,541 22 Non-Aeronautical Description Parking Retrofit South Sat Concessions Project Parking Garage Light Retrofit Concessions Unit Readiness Pro GML Arrivals Hall Concessions Common Use Lounge Remodel All Other Total 2011 Estimate 50 230 25 641 25 236 519 1,726 2012 1,850 1,618 500 1,222 625 735 702 7,252 2013 5,700 975 158 100 6,933 2014 242 242 2015 - 2016 - Total 2012-16 7,550 1,618 1,475 1,222 783 735 1,044 14,427 23 Community Partnerships Description Highline School Insulation Community College Home Insulation Retrofit Burien Commerical Prop Acq. Single Family Home Sound Insul All Other Total 2011 Estimate 1,567 1,578 200 846 641 4,832 2012 12,028 2,187 690 505 250 15,660 2013 6,317 6,317 2014 16,781 2,186 18,967 2015 - 2016 - Total 2012-16 35,126 4,373 690 505 250 40,944 24 CIP Allowances - Status 2011 Aero Allowance Beginning balance Budget Changes Projects cut from CIP Approved uses Balance Redistribute allowance Ending balance Non-Aero Allowance Beginning balance Budget Changes Projects cut from CIP Approved uses Balance Redistribute allowance Ending balance 2012 2013 2014 2015 2016 800 16,728 35,500 50,000 55,433 100,000 1,320 2,120 (11,000) 5,728 (31,573) 18,427 5,728 18,427 55,433 (40,000) 15,433 100,000 2,120 (63,285) (27,785) 40,000 12,215 929 11,000 14,000 15,000 15,603 25,000 (5) 924 (365) 10,635 (1,295) 12,705 15,000 15,603 25,000 924 10,635 12,705 15,000 15,603 25,000 100,000 Total 2011-16 258,461 1,320 (105,858) 153,923 153,923 81,532 (1,665) 79,867 79,867 • 2012 budget proposes to use more of five year allowance within next three years • New FIS facility would likely require spending more than allowance 25 Capital Budget: 2011- 2016 400 Allowance 350 New BP Prospective 300 Rental Car Facility Existing CIPs 250 200 150 100 50 2011 2012 2013 2014 2015 2016 26 Seaport Division 2012 Capital Budget Commission Briefing September 27, 2011 Terminal 91 Pier 86 Pier 66 Terminal 46 T-18 On-Dock Rail BNSF (SIG - North) T-5 On-Dock Rail Terminal 30 Terminal 18 BNSF (SIG - South) Terminal 25 S Terminal 5 UPRR (ARGO) 28 2012 SEAPORT KEY STRATEGIES In 2011, the Seaport's three Strategic Initiative Teams developed long term Seaport Strategies: 1. Commercial Business 2. Asset Stewardship 3. Green Gateway For 2012, Seaport will advance these strategies in alignment with the Commission's Century Agenda, the CEO's Goals and Key Corporate Initiatives. 29 Capital Budget Review • Capital Budget reviewed by cross functional teams • Reviewed all existing projects and identified new projects as driven by: - 2012 Seaport Strategies - New developments and information from customers and tenants - Continuing effort to identify specific renewal and replacement projects • First draft of Seaport 2012 Capital Budget presented with Business Plan in August 30 Capital Budget Review (continued) • Per policy effective in 2010, Seaport is financially selfsustaining • Funding capacity for projects not yet determined • Projects have been ranked as follows: - Priority 1: In progress and/or most critical to 2012 business plan and/or lease commitment - Priority 2: Critical to 2012 business plan - Priority 3: Less critical to 2012 business plan and/or more uncertainty • List of current and future major asset related expense project included 31 Seaport 2012 Capital Budget Capital Budget Summary $'s in 000's 2012 2012-2016 2017-2021 Total Committed 25,706 41,744 18,204 59,948 Bus Plan Prospective 4,868 254,396 222,950 477,346 30,574 296,140 241,154 537,294 0 451,235 274,020 725,255 30,574 747,375 515,174 1,262,549 Other Prospective Total 32 Seaport 2012 Capital Budget Containers $ 000's Status Key Goal CONTAINERS Committed Commercial Business Committed Commercial Business Committed Commercial Business Committed Asset Stewardship Committed Commercial Business Bus Plan Pros Commercial Business Bus Plan Pros Asset Stewardship Bus Plan Pros Commercial Business Bus Plan Pros Asset Stewardship Bus Plan Pros Commercial Business Bus Plan Pros Asset Stewardship Bus Plan Pros Asset Stewardship Bus Plan Pros Commercial Business Priority Capital Project 1 1 1 1 1 2 2 2 3 3 3 3 3 Street Vacation Related Projects T5 Crane Cable Reels T10 Interim Development T18 Fender Replacement South T25 Container Yd Phase 2 Container Support Yard-3.5M T#1 Container Terminal Strm Water Pilot T46 Development T46 North Dock Replacement T5 New Cranes (4) P86 Fishing Pier Replacement T18 Rail Crossings Container Support Yard-3.5M T#2 TOTAL CONTAINERS COMMITTED & BUSINESS PLAN PROSPECTIVE 2012 2012-2016 2017-2021 Total 3,213 13 475 1,378 12,200 0 1,000 0 0 0 0 0 0 7,803 13 475 1,378 12,200 30,000 1,300 25,000 20,000 45,000 1,300 0 0 0 0 0 0 0 0 0 15,000 0 0 4,750 1,000 35,000 7,803 13 475 1,378 12,200 30,000 1,300 40,000 20,000 45,000 6,050 1,000 35,000 18,279 144,469 55,750 200,219 33 Seaport 2012 Capital Budget Grain $ 000's Status Key Goal GRAIN Committed Commercial Business Bus Plan Pros Asset Stewardship Priority Capital Project 1 2 T86 Grain Facility Modernization T86 Grain Facility- Cathodic Protect TOTAL GRAIN COMMITTED & BUSINESS PLAN PROSPECTIVE 2012 2012-2016 2017-2021 Total 107 900 107 1,000 0 0 107 1,000 1,007 1,107 0 1,107 34 Seaport 2012 Capital Budget Industrial Properties Status Key Goal INDUSTRIAL PROPERTIES Committed Asset Stewardship Committed Asset Stewardship Bus Plan Pros Asset Stewardship Bus Plan Pros Asset Stewardship Bus Plan Pros Asset Stewardship Bus Plan Pros Asset Stewardship Bus Plan Pros Asset Stewardship Bus Plan Pros Commercial Business Bus Plan Pros Commercial Business $ 000's Priority Capital Project 1 1 2 3 3 3 3 3 3 2012 2012-2016 2017-2021 Total T91 Water Main Repl N of Bridge Pier 90 C175 Roof Replacement T91 Substation Upgrades T108 Paving Overlay T104 Site Improvements T115 Railroad Spur Upgrade T91 Railroad Spur Upgrade New Warehouse at Tank Farm** T91 Replace Building C173** 565 2,005 0 0 1,000 0 0 0 0 565 2,005 2,500 3,190 3,000 1,050 1,110 21,900 0 0 0 0 0 0 0 0 0 23,700 565 2,005 2,500 3,190 3,000 1,050 1,110 21,900 23,700 TOTAL INDUSTRIAL PROP COMMITTED & BUSINESS PLAN PROSPECTIVE 3,570 35,320 23,700 59,020 Note **: New T91 warehouse and replacement of T91 C173 building part of phase 2 of program to rebuild berths 6&8 on Pier 90 35 Seaport 2012 Capital Budget Cruise $ 000's Status Key Goal CRUISE Committed Commercial Business Committed Commercial Business Committed Commercial Business Committed Asset Stewardship Bus Plan Pros Asset Stewardship Bus Plan Pros Asset Stewardship Bus Plan Pros Green Gateway Priority Capital Project 1 1 1 1 2 3 3 T30/91 Projects Cruise Capital Allow-CTA Lease Cruise TI Allowance-CTA Lease P91 Fender System Upgrade P66 Apron Pile Wrap T91 Second Gangways Per Berth P66 Shore Power ( E) TOTAL CRUISE COMMITTED & BUSINESS PLAN PROSPECTIVE 2012 2012-2016 2017-2021 Total 25 375 251 1,875 500 0 0 25 375 251 1,875 2,378 4,500 13,700 0 0 0 0 0 5,000 0 25 375 251 1,875 2,378 9,500 13,700 3,026 23,104 5,000 28,104 Note (E): Environmental Project 36 Seaport 2012 Capital Budget Docks Status $ 000's Key Goal DOCK OPERATIONS Bus Plan Pros Asset Stewardship Bus Plan Pros Asset Stewardship Bus Plan Pros Commercial Business Priority Capital Project 2 3 3 T91 Berth 6&8 Redev-Phse 1 T91 Berth 6&8 Redev-Phse 2** Dredge Pier 90 East Berths TOTAL DOCKS COMMITTED & BUSINESS PLAN PROSPECTIVE 2012 2012-2016 2017-2021 Total 0 0 0 24,500 13,000 0 0 12,500 6,000 24,500 25,500 6,000 0 37,500 18,500 56,000 Note**: Phase 2 of T91 Berth 6&8 Redevelopment requires removal of C173 Building on Pier 90. 37 Seaport 2012 Capital Budget Security and Other Status Key Goal SECURITY Committed Security Committed Security Committed Security Bus Plan Pros Security Bus Plan Pros Security $ 000's Priority Capital Project 1 1 1 2 2 Sea Sec Grant Rnd 7 - TWIC Sea Sec 2009 ARRA-Sonar Sys Sea Sec Grant Rnd 7B-Bomb Robot Trk Sea Sec Grant Rnd 9-Dive Van,8 Cars Sea Sec Grant Rnd 10-Mobile Cmd Veh 2012 2012-2016 2017-2021 Total 700 393 261 880 588 700 393 261 880 588 0 0 0 0 0 700 393 261 880 588 2,822 2,822 0 2,822 470 775 625 0 7,360 3,175 2,783 38,500 12,500 2,500 3,204 120,000 19,860 5,675 5,987 158,500 TOTAL OTHER 1,870 51,818 138,204 190,022 TOTAL SEC AND OTHER COMMITTED & BUSINESS PLAN PROSPECTIVE 4,692 54,640 138,204 192,844 TOTAL SECURITY OTHER Committed Green Gateway Committed Asset Stewardship Committed Asset Stewardship Bus Plan Pros Asset Stewardship 1 1 2 3 Seaport Green Port Initiative ( E) Seaport Small Projects Other Contingency Renew & Replace Note (E): Environmental Project 38 Seaport 2012 Capital Budget MAJOR EXPENSE PROJECTS $'s in 000's 2012 2012-2016 2017-2021 Total Asset Condition Assessments T5 Dredge Phase 2 T18 Pile Cap Pilot T18 Pile Cap Repair Project T18 Remove IHI Cranes T46 Demo Crane 54 Maintenance Dredge all Terminals 1,000 500 700 500 0 0 0 1,000 3,500 700 30,500 1,000 450 3,000 0 0 0 0 0 0 4,000 1,000 3,500 700 30,500 1,000 450 7,000 Total 2,700 40,150 4,000 44,150 • Scope, process, and cost for repairing T18 pile caps currently under evaluation. Accounting treatment (capital or expense) to be determined. • Potential need for pile cap repairs at T46 not included above. • Specific timing and cost of maintenance dredge projects (beyond T5 Dredge Phase 2) are uncertain. 39 Seaport 2012 Capital Budget Capital Budget Summary with Major Expense Projects $'s in 000's 2012 2012-2016 2017-2021 Total Committed 25,706 41,744 18,204 59,948 Bus Plan Prospective 4,868 254,396 222,950 477,346 30,574 296,140 241,154 537,294 Major Expense Projects 2,700 40,150 4,000 44,150 Total Projects 33,274 336,290 245,154 581,444 0 451,235 274,020 725,255 Total Committed & BPP Other Prospective Capital Projects 40 Real Estate Division 2012 Capital Budget Commission Briefing September 27, 2011 41 Capital Budget Review • Capital Budget reviewed by cross functional teams • Reviewed all existing projects and identified new projects as driven by: - 2012 Real Estate Strategies - New developments and information from customers and tenants - Continuing effort to quantify/identify specific renewal and replacement projects • First draft of Real Estate 2012 Capital Budget presented with Business Plan in August • Funding capacity for projects not yet determined 42 Capital Budget Review (continued) • Overall 2012-2016 Committed and Business Plan Prospective projects reduced by $12 million • Primary changes since Business Plan - SBM Restroom Replacements and Paving moved up to Business Plan Prospective status - FT Waterside renewal and replacement projects moved out to 2016-2017 - FT Net Shed project costs revised down - Green Port Initiative moved to Prospective status - Bell Harbor Marina Pile Wrap project moved up to Business Plan Prospective status - Contingency Renewal and Replacement amount revised down 43 Real Estate 2012 Capital Budget Capital Budget Summary $'s in 000's 2012 2012-2016 2017-2021 Total Committed 10,924 21,325 8,486 29,811 Bus Plan Prospective 3,600 32,706 80,625 113,331 14,524 54,031 89,111 143,142 0 34,523 32,223 66,746 14,524 88,554 121,334 209,888 Other Prospective Total 44 Real Estate 2012 Capital Budget By Location Fishermen's Terminal $ 000's FISHERMEN'S TERMINAL 2012 2012-16 2017-21 2012-21 Total FT Waterside Projects Capital Projects Status Description Committed FT Waterside Small Capital Projects BPP FT Net Shed Solution BPP FT Net Shed 9 Roof Replace BPP FT NW Dock Improvements BPP FT S Wall W End Pile Repl & Corr Protect BPP FT W Wall N Fender Sys Replace BPP FT W Wall N Sheet Pile Corr Protect BPP FT Docks 3 Fixed Pier Improvements BPP FT Docks 4 Fixed Pier Improvements BPP FT S Wall Ctrl Fender Repl & Corr Protect BPP FT W Wall South Sheet Pile Corr Protect Total FT Waterside 70 750 450 0 0 0 0 0 0 0 0 1,270 220 3,750 450 100 1,250 200 200 200 200 0 0 6,570 0 0 0 38,700 0 2,750 2,575 2,800 3,300 13,300 2,200 65,625 220 3,750 450 38,800 1,250 2,950 2,775 3,000 3,500 13,300 2,200 72,195 FT Upland Projects Capital Projects Status Description Committed FT C15 HVAC Improvements Committed FT Uplands Small Capital Projects BPP FT Paving/Storm Upgrades BPP FT C15 Bldg Roof Replacement BPP FT C14 (Downey) Bldg Imp BPP FT C-2 Bldg Roof & HVAC Rplmnt BPP FT C-15 Bldg East Sewer Line BPP FT C-15 Bldg Subsidence Imp Total FT Landside 3,572 0 0 0 0 0 850 250 4,672 3,602 1,255 1,650 2,400 950 1,150 850 2,750 14,607 0 0 0 0 0 0 0 0 0 3,602 1,255 1,650 2,400 950 1,150 850 2,750 14,607 TOTAL FISHERMEN'S TERMINAL 5,942 21,177 65,625 86,802 45 Real Estate 2012 Capital Budget By Location Shilshole Bay Marina $ 000's SHILSHOLE BAY MARINA Shilshole Bay Marina Recreational Boating Committed Small Projects BPP SBM Fuel Floats & Building Improve BPP Central Seawall Replacement BPP SBM Restroom Replacement BPP SBM Paving Total SBM Recreational Boating Shilshole Bay Marina Commercial Prop BPP SBM: Seaview Bldg A5 Rehab Total SBM Commercial Prop TOTAL SHILSHOLE BAY MARINA 2012 2012-16 2017-21 2012-21 Total 70 0 0 0 0 70 165 1,000 915 4,800 1,000 7,880 0 0 0 0 0 0 165 1,000 915 4,800 1,000 7,880 0 0 300 300 0 0 300 300 70 8,180 0 8,180 46 Real Estate 2012 Capital Budget By Location Central Waterfront $ 000's CENTRAL WATERFRONT 2012 2012-16 2017-21 2012-21 Total Central Waterfront- Bell Harbor Marina BPP BHM Pile Wraps Total BHM Recreational Boating 500 500 2,361 2,361 0 0 2,361 2,361 Central Waterfront Commercial Bldgs Committed Bell Harb Lighting Ctrl Upgrade Committed Small Projects BPP P66 Chiller Upgrades Total Central Waterfront Commerical Bldgs 160 150 300 610 760 535 300 1,595 0 0 0 0 760 535 300 1,595 1,110 3,956 0 3,956 TOTAL CENTRAL WATERFRONT 47 Real Estate 2012 Capital Budget By Location Other Commercial Properties $ 000's OTHER COMMERCIAL PROPERTIES 2012 2012-16 2017-21 2012-21 Total Other Commercial Properties Committed Tenant Improvements -Capital Committed Other Commercial Props Small Capital BPP T102 Bldg Roof Replacement Total Other Commercial Buildings 1,148 0 0 1,148 2,755 475 2,430 5,660 909 50 0 959 3,664 525 2,430 6,619 TOTAL OTHER COMMERCIAL PROPERTIES 1,148 5,660 959 6,619 48 Real Estate 2012 Capital Budget By Location Pier 69 and Other Projects $ 000's PIER 69 AND OTHER PROJECTS 2012 2012-16 2017-21 2012-21 Total Other Committed P69 N Apron Piling Cathodic Protection Committed P69 Built Up Roof Replace Committed Marine Maint Small Projects Committed RE Fleet Replacement Committed RE Preliminary Planning Committed RE Technology Projects Committed Unspecified Small Projects BPP RE: Contingency Renew.&Replace Total Other 3,923 300 525 506 250 250 0 500 6,254 3,923 1,992 525 2,403 1,250 1,250 215 3,500 15,058 0 0 0 2,577 1,250 1,250 2,450 15,000 22,527 3,923 1,992 525 4,980 2,500 2,500 2,665 18,500 37,585 TOTAL P69 AND OTHER PROJECTS 6,254 15,058 22,527 37,585 49 Corporate & CDD 2012 Capital Budget Commission Briefing September 27, 2011 50 5 Year Capital Budget - Corp & CDD (In Thousands) 2011 Estimate 2012-2016 2016 5 Yr Total 2012 2013 2014 2015 Technology Corporate Small Capital and Fleet Replacement CDD Small Capital and Fleet Replacement 8,317 13,527 10,950 10,650 10,800 11,000 56,927 300 522 327 566 784 584 2,783 523 426 1639 1107 1070 726 4,968 TOTAL CORPORATE CIP 9,140 14,475 12,916 12,323 12,654 12,310 64,678 Information & Communication (1) (1) Includes committed and business plan prospective projects. 51 2012 Capital Projects - Corp & CDD Corporate and CDD Committed Projects: Total Project Budget* 2012 Budget Information and Communication Technology Infrastructure Small Capital Business Applications Small Capital Enterprise GIS Small Capital PeopleSoft Financials Upgrade ID Badge System Police Records Mgmt System Replacement Project Delivery System Maximo Enhancements and Upgrades Maintenance Planning System Property Mgt. System Upgrade (Propworks) Technology Total $ 2,500 2,000 250 2,700 2,200 500 200 400 52 200 11,002 $ 5,000 2,300 1,300 1,525 3,769 402 450 14,746 Other Corporate and CDD CDD Fleet Replacement CDD Small Capital Corporate Small Capital and Fleet Replacement Other Total Corporate and CDD Total $ 143 283 522 948 - 11,950 14,746 * Excludes Small Capital Projects 52 Portwide 2012 Capital Budget Commission Briefing September 27, 2011 53 2012 Capital Budget Summary ($ in millions) Aviation Seaport Real Estate Corporate (1) Total Committed $270.0 $25.7 $10.9 $12.0 $318.6 Business Plan Prospective $75.0 $4.9 $3.6 $2.5 $86.0 $345.0 $30.6 $14.5 $14.5 $404.6 Total (1) Includes $0.4 million for CDD 54 2012 Capital Budget by Division Seaport Division 8.1% Real Estate Division 3.4% Corporate & CDD Total Spending: $318,623 Divisions 3.8% Aviation Division 84.8% * Not including $86.0M of Business Plan Prospective Projects. 55 5-Year Capital Plan by Division The 5-year capital plan from 2012-2016 is $1.5 billion Committed Projects: • Aviation $444.3M • Seaport $ 41.7M • Real Estate * $ 21.3M • Corporate & CDD $ 25.9M Total Committed Projects $533.3M Business Plan Prospective Projects: • Aviation $645.3M • Seaport $254.4M • Real Estate* $ 32.7M • Corp & CDD $ 38.8M Total Business Plan Prospective* $ 971.2M *The preliminary numbers may change pending outcome of tax Levy discussions 56 CIP History 2001 - 2011 Total Committed CIP (000's) 600,000 500,000 400,000 300,000 200,000 100,000 0 Total Committed CIP 2001 Act 2002 Act 2003 Act 2004 Act 2005 Act 2006 Act 2007 Act 2008 Act 2009 Act 2010 Act 2011 Est/Act 2011 Bud 400,000 471,000 467,300 490,400 514,100 470,105 393,035 329,022 317,785 202,556 234,966 288,827 57 2012 Capital Budget Commission Briefing September 27, 2011 58