EXECUTIVE DIRECTOR’S REPORT TO THE FOR SEPTEMBER 2016 · Cat Daddy, LLC DBA Voodoo Doughnut – Permit and Rig ht of Entry for Food Service Purposes Location: T-2 Term: August 13,

EXECUTIVE DIRECTOR’S REPORT TO THE

PORT OF PORTLAND COMMISSION FOR SEPTEMBER 2016

SAFETY REPORT

Port of Portland August 2016 safety performance showed a decrease in both frequency and severity, compared to August of 2015. Calendar Year 2016 total claims and incidents continually show improved performance from Calendar Year 2015. Monthly Report of Injury Incidents

Aviation

One recordable incident:

• Employee was driving a Port vehicle when it was struck on the passenger front side by another vehicle while going through an intersection. The employee sustained a whiplash type injury to the neck.

Two non-recordable incidents:

• Employee was a passenger in a Port vehicle when it was struck on the passenger front side by another vehicle while going through an intersection. The employee sustained a contusion to the right shoulder/chest and an abrasion on the right foot.

• Employee attempted to quickly dismount from a bike to avoid an approaching suspect. Employee lost balance and fell, causing a contusion on the right hip.

One near miss:

• Employee moved a ladder; an unsecured knife on top of the ladder fell off, resulting in a near miss.

Marine

One non-recordable incident:

• Employee was sitting in a rolling chair and reached to grab a pen that had fallen onto the floor; employee fell out of the chair, landing on the right knee and both elbows.

2

AVIATION REPORT

Month/Month % change FYTD % change August July-August Passengers 6.4% 6.3% Concessions Revenue 13.3% 11.6% Rental Car Revenue 12.8% 12.7% Parking Revenue 5.6% 4.9%

Passengers

August passenger volumes increased 6.4 percent compared to August 2015. Seat capacity increased 9.3 percent, with the load factor falling 2.3 points to 85.8. The June through August 2016 months posted a new record of 5.4 million passengers, an increase of 7.1 percent, or about 354,000 more travelers compared to last summer. For the first time, PDX surpassed the one million mark for outbound seats in July and August. International summer passenger volumes also hit a new record of 223,140, a 15.1 percent increase.

3

Concessions Revenue

Combined terminal concessions operations reported a 13.3 percent, or $173,000, rent increase on the month, against a 6.4 percent passenger increase. This increase is due to sales/rent growth reflective of a very successful summer sales promotion, the productivity of the quick-serve food and beverage facilities, and news and gift facilities, with 19.3 percent and 18.3 percent rent increases, respectively, during the month of August. There were also significant enplanement increases during this period. Rental Car Revenue

As most rental car revenues are reported at plan in the current month, due to timing issues, we will instead report on a year-to-date basis for this industry.

Rental car operations reflect a 12.8 percent, or $661,000, rent increase year-to-date over last year, against a year-to-date passenger increase of 6.4 percent. All operators reported rents over Minimum Annual Guarantee (MAG) for this period, with the exception of the Ordinance operators, Airport Van Rental and Payless Car Rental, which have no MAG. Parking Revenue by Lot

Parking revenue continues to increase each month over last year. The economy lot, short-term garage, and valet revenue and transactions continue to increase, while the long-term garage revenue and transactions decreased compared to August 2015. Given the increase in short-term garage demand, level 7 of short-term is not being used as overflow for long-term customers, a contributing factor to the negative variance in long-term revenue. Transactions were down 0.5 percent compared to August 2015.

Product Revenue Variance YTD Variance

Short-Term $1,487,048 9.5% 7.2% Long-Term $1,680,195 -4.5% -4.8% Economy $1,877,073 11.8% 12.2% Valet $103,230 26.3% 21.5% Total $5,147,546 5.6% 4.9%

CAPITAL GRANTS

Portland International Airport

Staff submitted a reimbursement request to the Transportation Security Administration for the Law Enforcement Officer (LEO) program in the amount of $12,000 (Agmt. No. HSTS0216HSLR647).

Staff submitted a reimbursement request to TriMet for the LEO program in the amount of $12,275 (Agreement No. GS150820LG).

Staff submitted a reimbursement request to the Federal Bureau of Investigation for the Joint Terrorism Task Force program in the amount of $2,925 (Agreement No. 03-026). Marine Staff submitted a reimbursement request to the Oregon Department of Transportation for the ConnectOregon III – Terminal 6 Crane Upgrades project in the amount of $61,503 (Agreement No. 26915).

4

MARINE & INDUSTRIAL DEVELOPMENT REPORT

The figures in the table below show change relative to the prior year.

August 2016 Fiscal Year-to-Date

Total Tonnage 109.1% 123.0% Containers (TEU) -100.0% -100.0% Import Full Containers – – Export Full Containers -100.0% -100.0% Breakbulk -100.0% -100.0% Autos 26.4% 29.3% Mineral Bulk 170.9% 109.3% Grain 103.7% 236.9%

5

PROJECT COMPLETION REPORT

The following construction contract, previously awarded by the Commission, has been completed: Dredge Tender Ivanoff Hull and Propulsion System Modifications - Navigation

Approved by Port Commission January 13, 2016 Contract Award Amount $785,878 Authorized Contract Amendments $187,763 Final Contract Amount* $973,641 *The original contract was exceeded by 10 percent due primarily to the necessary upgrade of the steering hydraulics and electronic control system. The original bid included nominal changes to the systems, but once the work began, a more-extensive retrofit was required.

REAL ESTATE TRANSACTIONS EXECUTED PURSUANT TO DELEGATED AUTHORITY Sky Chefs, Inc. – Third Amendment to Flight Kitchen Facility Lease Location: PDX

Term: August 04, 2016 to September 30, 2016

Use: Amendment No. 3: This amendment extends the term through September 30, 2016. Auto Warehousing Company – Seventh Amendment to Lease of Improved Space Location: Terminal 6 (T-6)

Term: August 25, 2016 to March 31, 2025

Use: Amendment No. 7: Amends the lease to add additional area to premises of 18.845 acres, extends the term of the lease, provides lessee with additional options to extend the term, and establishes basic rent for the additional area.

State of Oregon – Notice of Transfer of Property and Partial Assignment and Assumption of Prospective Purchaser Agreement to Consent Judgment Location: Troutdale Reynolds Industrial Park (TRIP)

Term: Effective August 11, 2016

Use: Confirms the Port has transferred its obligations and responsibilities for TRIP Lot 1 to FedEx Ground with DEQ's consent, pursuant to the Stipulated Supplemental Judgement dated December 22, 2015 and DEQ confirms the Port is released from its Lot 1 Stipulated Supplemental Judgment obligations.

6

Semiconductor Components Industries, LLC – Partial Release of Obligations Relating to Irrigation Line Easement Agreement, to current and future owners and Quitclaim Deed to Amendment to Easement Agreements Location: Gresham Vista Business Park (GVBP)


Use: These documents remove certain exceptions to the title on the GVBP Lot 9 property to which the buyer has objected. The exceptions were a potential obligation relating to an irrigation line and a right to use a gravel road.

City of Portland – First Amendment to Easement and Agreement Location: PDX


Use: Amendment No. 1: Amends a portion of the easement location. Huntleigh USA Corporation – Second Amendment to Month-to-Month Lease of Improved Space Location: PDX


Use: Amendment No. 2: This amendment allows for Huntleigh to move to a larger space on a temporary basis. The Port initiated the relocation.

U.S. Bank National Association – Second Amendment to ATM and Banking Services Concession Lease Location: PDX


Use: Amendment No. 2: This amendment exercises an option to extend, amends the premises and rent, and deletes all mentions of kiosks.

Taste, Inc. DBA Vino Volo – First Amendment to Retail Concession Lease Location: PDX


Use: Amendment No. 1: This amendment clarifies certain provisions of the lease. Capers Café & Catering Co. DBA Capers Farm-to-Table Market – First Amendment to Food & Beverage Concession Lease Location: PDX


Use: Amendment No. 1: This amendment adds storage space and clarifies certain provisions of the lease.

Specht Development, Inc – First Amendment to Sale Agreement and Agreement for Continuing Covenants Location: GVBP Lot 9


Use: Amendment No. 1: This amendment modifies the utility improvement provisions, including electrical utility provisions, in the sale agreement to allow for buyer construction of the on-site utilities and clarifies that buyer will arrange with PGE a sufficient level of electric power for its development.

7

Specht Development, Inc – Second Amendment to Sale Agreement and Agreement for Continuing Covenants Location: GVBP Lot 9


Use: Amendment No. 2: Under this assignment and second amendment, Madison-Specht Vista Logistics, LCC, assumes the rights and obligations under the sale agreement of Specht Development, Inc. The remainder of these are documents necessary to effect the closing on GVBP Lot 9.

NE Creperie – Permit and Right of Entry for Food Service Purposes Location: Terminal 2 (T-2)

Term: August 13, 2016 to August 13, 2016

Use: Permit for food cart vendor to participate in the 2016 Seaport Celebration at T-2. Oregon International Air Show, Inc. – Permit and Right of Entry Location: Hillsboro Airport (HIO)


Use: Short-term permit for the purpose of holding an air show community event. Martin Eulogio DBA El Taco Yucateco – Permit and Right of Entry for Food Service Purposes Location: T-2


Use: Permits for food cart vendors to participate in the 2016 Seaport Celebration at T-2. David Thornton DBA Big Fat Weiners – Permit and Right of Entry for Food Service Purposes Location: T-2


Use: Permits for food cart vendors to participate in the 2016 Seaport Celebration at T-2. Organic Island Shave Ice, LLC – Permit and Right of Entry for Food Service Purposes Location: T-2


Use: Permits for food cart vendors to participate in the 2016 Seaport Celebration at T-2. Thrive Mobile Food Truck and Sauce Co. – Permit and Right of Entry for Food Service Purposes Location: T-2


Use: Permits for food cart vendors to participate in the 2016 Seaport Celebration at T-2. Beaches Restaurant and Bar DBA Beaches PDX, Inc. – Permit and Right of Entry for Food Service Purposes Location: T-2


Use: Permits for food cart vendors to participate in the 2016 Seaport Celebration at T-2.

8

Cat Daddy, LLC DBA Voodoo Doughnut – Permit and Right of Entry for Food Service Purposes Location: T-2


Use: Permits for food cart vendors to participate in the 2016 Seaport Celebration at T-2. Boyd’s Coffee Company – Permit and Right of Entry for Food Service Purposes Location: T-2


Use: Permits for food cart vendors to participate in the 2016 Seaport Celebration at T-2. Koi Fusion Inc. – Permit and Right of Entry for Food Service Purposes Location: T-2


Use: Permits for food cart vendors to participate in the 2016 Seaport Celebration at T-2. Erik Mitchell DBA Cackalacks Hot Chicken Shack – Permit and Right of Entry for Food Service Purposes Location: T-2


Use: Permits for food cart vendors to participate in the 2016 Seaport Celebration at T-2. State of Oregon – Management Agreement Location: Government Island

Term: January 01, 2016 to December 31, 2020

Use: This agreement converts a former ground lease into a management agreement with annual payments, based on Oregon Parks and Recreation Department's expected costs to perform management functions at Government Island.

Specht Development, Inc – Permit and Right of Entry Location: GVBP Lot 9


Use: Temporary access to GVBP Lot 9 for site preparation work. Specht Development, Inc – First Amendment to Permit and Right of Entry Location: GVBP Lot 9


Use: Amendment No. 1: This amendment is a 6-day extension to August 19, 2016 temporary access to GVBP Lot 9 for Site Preparation Work.

Portland General Electric Company – Utility Easement Location: GVBP Lot 9


Use: This easement is for a 15-foot underground electrical utility through Lot 9 of GVBP.

9

State of Oregon – Intergovernmental Agreement Location: PDX


Use: Intergovernmental Agreement for transportation improvements associated with Airport Futures.

State of Oregon – Permit and Right of Entry Location: Government Island


Use: Short-term permit for the purpose of conducting special operations command training on Port property.

Madison-Specht Vista Logistics, LLC – Underground Utility Line Easement Location: GVBP


Use: This Underground Utility Easement will allow for a stormwater and sewer easement on Lot 9.

Madison-Specht Vista Logistics, LLC – Special Warranty Deed with Restrictive Covenants Location: GVBP


Use: Transfers ownership of GVBP Lot 9 to Madison-Specht Vista Logistics, LLC. Madison-Specht Vista Logistics, LLC – Stormwater Easement Location: GVBP


Use: Will allow for a stormwater system easement on Lots 10 and 11, serving Lots 8 and 9. Madison-Specht Vista Logistics, LLC – Sanitary Sewer Easement Location: GVBP


Use: Easement will allow for a sanitary sewer on Lot 10, serving Lots 8 and 9. United Parcel Service, Inc. – Permit and Right of Entry Location: Swan Island

Term: August 01, 2016 to January 31, 2017

Use: UPS is granted permission to use the east lot on Swan Island from August 1, 2016 until January 31, 2017 for overflow truck storage.

Autism Research and Resources of Oregon – Permit and Right of Entry Location: PDX


Use: Short-term permit for the purpose of allowing Sean's Run, a charitable event, temporary access to a portion of the land for a run-through area.

10

Auto Warehousing Company – Auto Facility Expansion Contract Location: T-6


Use: Contract for construction by Auto Warehousing Company of the auto processing facility in the Rivergate Industrial District.

City of Portland – Intergovernmental Agreement Location: PDX


Use: Intergovernmental Agreement for improvements associated with Airport Futures. Comcast Cable Communications Management LLC – Permit and Right of Entry Location: PDX


Use: Access to Port property for the purpose of performing work in connection with conduit removal, including staging and storage.

ODOT, Multnomah County, MCDD, Cities of Troutdale and Fairview, Metro and SDIC – Local Agency Agreement Location: PacifiCorp property adjacent to TRIP


Use: This multi-agency partnership, along with funding from Metro, allows for the construction by the Port's contractor of three segments of the 40-mile Loop Trail to be owned and operated by local area governments.

Contracts Over $50,000 Pursuant to Delegated Authority

Monthly Report for September 2016 (August Activity)

TitleRequestor

DepartmentVendor Name

P.O. Amount

Purchase annual transportation passes.

Human Resources TriMet $52,321

Obtain safety and industrial hygiene consulting services.

Risk Management Amec Foster Wheeler

$98,000

Purchase network equipment. Information Technology

Dell Marketing LP

$210,070

Obtain insurance brokerage and risk management consulting services.

Risk Management Marsh USA, Inc. $530,914

Obtain construction services for the Taxiway B Center & Exits Rehabilitation Project.

Engineering Project Development

K&E Excavating, Inc.

$18,845,000

TitleRequestor


Original Amount

Previous Changes to

Contract

Current Change to Contract

New Contract Total

Administrative action to add funds to obtain continued usage of the city's computer aided dispatch system for emergency services.

Information Technology

City of Portland $102,058 $389,022 $102,736 $593,816

Administrative action to add funds to obtain additional crane mechanical maintenance services at Terminals 2 and 6.

Marine Operations Harbor Industrial Services Corp

$3,010,000 $784,000 $139,509 $3,933,509

New Purchases

Change Orders and Amendments to Project-Specific Contracts

Contracts in this category are initially awarded with a specific work scope and an identified not-to-exceed project total.

APPROVAL LIMITS (Administrative Policy 7.2.3)

All expenditures require management approval:

BUDGET Approval by Directors Up to $ 50,000

APPROVAL Approval by Chief Officers Up to $250,000

Approval by Executive Director & Deputy Executive Director Unlimited

Contracting authority is limited to the following:

CONTRACTING Chief Officers Up to $ 10,000

APPROVAL Buyers Up to $ 50,000

Manager of Contracts & Procurement Up to $ 250,000*

Executive Director & Deputy Executive Director Up to $ 500,000**And any amount approved by Commission

Amendment #4 to obtain additional air service development consulting services.

Air Service Business Development

Campbell-Hill Aviation Group LLC

$225,000 $460,000 $225,000 $910,000

Change orders #2, #3 and #4 for the purchase of a cab replacement for Crane 6375.

Engineering Design Services

Harbor Industrial Services Corp

$198,000 $165,969 $242,460 $606,429

Amendment #4 to obtain additional hardware and software support for the PDX passenger common use kiosks.

Airport Operations ARINC Incorporated

$721,560 $1,416,247 $324,096 $2,461,903

Administrative action to add funds to obtain additional parking, valet and shuttle bus services.

Airport Operations SP Plus Corporation

$7,262,489 $7,732,335 $7,910,000 $22,904,824

TitleRequestor


Original Task Order Amount

Previous Changes to Task

Order

Current Change to Task Order

New Task Order Total

Total Contract Activity -

All Task Orders

Task order against contract #1009 to obtain planning services related to a soda ash unit train facility.

Transportation & Land Use Planning

HDR Engineering, Inc.

$54,500 $54,500 $54,500

Task order against contract #786 to obtain event planning services for an event for Cathay Pacific Airways.

Air Service Business Development

Cindy Thompson Event Productions

$65,000 $65,000 $176,806

Task order against contract #742 to obtain inspection support services.


Mott MacDonald LLC

$73,000 $73,000 $2,737,731

Task order against contract #660 to purchase low-sulfur diesel fuel for the Dredge Oregon .

Navigation Rainier Petroleum Corporation

$97,379 $97,379 $5,682,443

Task order against contract #985 to obtain a pavement condition survey.

Planning & Development

GRI $104,551 $104,551 $221,043

Task order against contract #742 to obtain inspection support services.


Mott MacDonald LLC

$125,000 $125,000 $2,737,731

Task order against contract #973 to obtain construction services for the East Lot PGE Electrical Service Line Relocation project.


Andersen Construction Company

$182,659 $182,659 $919,536

Task order against contract #973 to obtain construction services for the Head Quarters Roof Rehabilitation project.


Andersen Construction Company

$483,778 $483,778 $919,536

New Task Orders and Changes to Task Orders Against Non-Project Specific Contracts

Items in this category are issued against contracts that were initially awarded with no specific work scope or product quantity identified (e.g., "requirements" or "on-call" contracts). These contracts establish pricing or rates for products or work that may be needed over a stated term. Estimated quantities may be identified, but no guarantee of actual contract compensation or work is made. Contract durations may be short-term or for multiple years with optional renewal/extension terms.

Port of Portland Operating & Financial Results

FY 2016-17 through August 31, 2016

General Fund

Marine

Marine Volumes* Annual

Adopted

Budget

Actual

AmountsVariance

Adopted

Budget

Autos (Units) 49,757 54,692 9.9% 309,000Breakbulk 35,054 (100.0%) 132,277Containers (TEUs)Grain Bulk 543,843 769,437 41.5% 3,527,396Mineral Bulk 816,716 920,726 12.7% 5,141,179

* Volumes in short tons unless otherwise noted.

Industrial Development

Navigation

Current Year to Date

The General Fund includes Marine, Industrial Development, Navigation, General Aviation, Environmental, Financial &

Administrative Services, Executive, Public Affairs, Human Resources, Legal, and Project & Technical Services (IT,

Engineering, and the Project Portfolio Office).

Comments:

Operating revenues are $4.0M higher than the Adopted Budget primarily due to the timing of land sales.

YTD operating expenses excluding depreciation are $868K less than budget also due to the timing of land sales. The

key variances are listed below and are described in more detail in the following sections:

• Contracts, professional & consulting services expenses ($3.1M < budget).

• Personnel services ($1.8M > budget); an issue that affects all lines of business, the budget did not factor in three

pay periods for August. The total year budget is correct but there is a timing difference in the number of pay

periods budgeted to each period that will affect August and December.

• Cost of property sold ($1.7M > budget).

• Equipment rental, repair and fuel expenses ($417K < budget).

• Travel and management expenses ($396K < budget).

• Interdepartmental charges ($392K < budget).

$14.1

$12.9

$1.2

$3.1

$(2.0)

$18.1

$12.0

$6.1

$3.1 $3.0

$(5)

$0

$5

$10

$15

$20

Op Revenue Op Exp Excl

Deprec

OIBD Deprec Op Inc / (Loss)

Millions

General Fund

Curr Mo Budget Curr Mo Actual YTD Budget YTD Actual

$4.0

$3.4

$0.6

$1.6

$(0.9)

$4.4

$2.8

$1.5

$1.7

$(0.1)

$(2)

$(1)

$0

$1

$2

$3

$4

$5


Deprec


Millions

Marine


Marine Volumes:

Autos – Auto volumes are 10% higher than forecast and 29% higher than last year due to continued growth in both

Hyundai and Honda imports and Ford exports.

Breakbulk – YTD tonnage is 100% lower than forecast and last year as there have been no ship calls at T 2 so far this

fiscal year.

Containers – Until container service resumes, there will be no TEU variances to report.

Grain Bulk – YTD grain volumes are 42% higher than forecast and 237% higher than last year primarily because

production is up nationally (no drought or disease hurting crops). Also, Columbia River locks will close in December

for maintenance for three months, and upriver wheat growers are likely moving their cargo now to avoid it being

trapped in their silos for several months.

Mineral Bulk – Tonnage is 13% higher than forecast and 108% higher than last year. Portland Bulk was offline for the

first two months of last fiscal year during the installation of the new potash ship loader.

YTD operating revenues are $3.6M higher than the Adopted Budget due to the timing of land sales. The budget

assumed $5.7M in proceeds for the sale of TRIP Lots 11 & 12 to BPA in August, but these sales have not yet closed.

However, the sale of Gresham Vista Lot 9, which was budgeted in September, closed a month early at the budgeted

amount of $9.3M.

YTD operating expenses excluding depreciation is $1.6M higher than budget, with the largest variances listed below:

• Cost of property sold is $1.7M > budget (Lot 9 actual cost of property = $6.1M; TRIP Lots 11 & 12 budgeted cost of

property = $4.4M).

• Contracts, professional & consulting services are $235K < budget due to a credit for a Tidewater barge sublease

($151K; offsets a payment for the Port's lease with DSL that has not yet posted) and timing of design review and

appraisal, mitigation, and Hayden Island and general environmental expenses ($84K).

• Personnel services are $110K > budget because the budget did not factor in three pay periods for August.

$6.3$5.5

$0.8$0.1 $0.7

$10.0

$7.1

$2.9

$0.1

$2.8

$0

$2

$4

$6

$8

$10

$12


Deprec


Millions

Industrial Development


YTD operating expenses excluding depreciation are $413K less than budget due to 27 fewer dredging days than

budgeted (safety stand down delayed the start of the dredging season to late July). Lower operating expenses

translate into lower operating revenues, which are $353K < budget. $3.1

$2.7

$0.4 $0.4

$(0.0)

$2.7

$2.3

$0.5$0.4

$0.1

$(1)

$0

$1

$1

$2

$2

$3

$3

$4


Deprec


Millions

Navigation


Marine Operating Results:

YTD operating revenues are $369K higher than the Adopted Budget due to higher than anticipated auto revenues

($215K > budget) and South Rivergate rail access fees ($110K > budget; fees were budgeted to move to balance sheet

at beginning of FY 16 17). YTD operating expenses excluding depreciation are $533K less than budget, with the largest

variances listed below:

• Contracts, professional & consulting services are $397K < budget due to timing of T 4 and other Marine

environmental expenses (~$277K) and outside services expenses for waterway/navigation improvements ($151K <

budget; includes contribution for additional stern buoys in the Columbia River and LOADMAX fees).

• Personnel services are $146K > budget because the budget did not factor in three pay periods for August.

• Travel and management expenses are $76K < budget.

• Interdepartmental charges are $60K < budget due to lower than anticipated services received from Engineering

and capitalized labor.

• Utilities expenses are $51K < budget due to timing.

• Materials and supplies expenses are $36K < budget, primarily in the Facility & Electrical Maintenance, Crane Shop

and Security business units.

• Insurance expenses are $27K < budget.

• Equipment rental, repair and fuel expenses are $27K < budget.

• Longshore labor is $3K < budget.

Dredging VolumesAnnual

Adopted

Budget

Actual

Amounts Variance

Adopted

Budget

Dredging Days 48 21 (56.3%) 132

Cubic Yards Dredged 388,734

Current Year-to-Date

Port of Portland Operating & Financial Results

FY 2016-17 through August 31, 2016

General Aviation

Support Services

Portland International Airport

Total Passengers

PDX Airline Cost Center (ACC)

PDX Port Cost Center (PCC)

YTD operating revenues are above budget by $367K, primarily due a $300K early termination fee that the Port

received from BHG Hillsboro. In addition, there were higher than expected rental car revenues and airside land lease

revenues at HIO.

YTD operating expenses before depreciation are over budget by $95K, primarily due to higher personnel and

water/sewer costs.

$0.6 $0.6

$(0.0)

$0.6

$(0.6)

$1.0

$0.7

$0.3

$0.6

$(0.4)

$(0.8)

$(0.6)

$(0.4)

$(0.2)

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2


Deprec


Millions

General Aviation


Support Services is comprised of Financial & Administrative Services, Executive, Public Affairs, Human Resources,

Legal, and Project & Technical Services. Costs for these areas are allocated to the operating areas.

YTD operating expenses excluding depreciation are $766K under budget, with the largest variances listed below:

• Contracts, professional & consulting services are $1.3M < budget, mostly due to timing of ProMIS contract

expenses ($864K budgeted in Project Portfolio Office business unit; no expenses YTD). Contracts and outside

services in IT, Public Affairs, Financial & Administrative Services, and Environmental Affairs are $331K < budget due

to timing.

• Partially offsetting the lower expenses, personnel services are $1.1M > budget due to actual versus budgeted pay

periods for August (Budget did not factor in three pay periods for August. Total year budget is correct but there is

a timing difference in the number of pay periods budgeted to each month that will affect August and December).

• Interdepartmental charges are $397K < budget due to Engineering capitalized labor.

• Travel and management expenses are $256K < budget primarily due to timing of PROPS recognition

program/Achievers contract expenses ($210K budgeted in August but no expenses YTD). Travel and management

expenses in IT, Public Affairs and Financial & Administrative Services are $55K < budget due to timing.

• Other expenses are $88K > budget due to timing of ProMIS software ($303K budgeted in January; $151.5K posted

in July). Lower than expected sponsorship expenses ($37K) partially offset the higher software expenses.

YTD ACC revenues are $1.4M higher than budget. Airline revenues are $978K higher than budget due to higher than

expected landing activity (+$395K), terminal rents (+$346K), and common use rentals (+$220K). Retail, food and

beverage revenues are $271K higher than budget as a result of higher than expected passenger spending.

YTD ACC expenses are $271K below budget. Personnel Services are $977K over budget due to payroll being disbursed

for three pay periods while the Port budgeted for two pay periods. Materials, services, and transfers are $1.2M under

budget, primarily due to direct security services (down $136K), direct custodial services (down $83K), direct

stormwater costs (down $75K), and direct environmental costs (down $50K). Indirect costs related to this variance

include: long range planning consulting (down $115K), Air Service Development marketing (down $163K), outside

services for Police (down $100K), and commercial aviation inter departmental costs (down $146k).

YTD PCC revenues are $1.0M higher than budget. YTD rental car revenues are $583K higher than budget due to

June forecasted accruals being $615K below actuals; this amount carried into July (a post audit adjustment will be

made in September to correctly apply these June revenues to the prior year). YTD parking revenues are $125K

higher than budget due to higher use of the short term garage and economy lot partly offset by lower than

projected revenues in the long term garage. Other PCC revenues are $305K higher than budget as a result of

higher than expected volumes for transportation network companies (e.g. Uber, Lyft; over $198K), and higher

than expected ramp parking cargo revenues (over $48K).

PCC expenses are $128K lower than budget. Personnel services expense is $441K over budget due to payroll

being disbursed for three pay periods while the Port budgeted for two pay periods. Materials, services, and

transfers are $546K under budget, primarily due to direct custodial expenses ($36K lower), direct stormwater

fees ($30k lower), and direct equipment leases for the HQ Facility ($29k lower). Indirect costs related to this

variance include: long range planning consulting (down $77K), Air Service Development marketing (down

~$109K), outside services for Police (down $35K), and commercial aviation inter departmental costs (down

~$98K).

$23.0

$12.5

$7.9

$2.6

$24.4

$12.2

$7.9

$4.3

$0

$5

$10

$15

$20

$25

$30

Revenues Expenses (excl

Deprec)

Debt Service &

Coverage

Surplus / (Deficit)

Millions

PDX ACC

YTD Budget YTD Actuals

$10.5

$8.9

$6.4

$2.8

$1.7

$8.6

$10.7

$9.8

$6.3

$2.8

$1.7

$9.2

$0

$2

$4

$6

$8

$10

$12

Parking

Revenues

Rental Cars

& Other Rev

Expenses

(excl Deprec)

Debt Service

& Coverage

Revenue

Sharing

Income

Millions

PDX PCC

YTD Budget YTD Actual

Passengers traveling through PDX are a key driver of revenues and expenses for the Airport. YTD, 3.7 million total

passengers have utilized PDX, exceeding the prior year by 5.5%. The higher passenger levels are a result of the

continued growing economy and new flights by air carriers serving PDX. As a result of strong demand for air travel,

PDX passenger levels are increasing as carriers increase seat capacity and add flights.1.01.21.41.61.82.0

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May JunMillions

FY 15/16 Actual FY 16/17 Actual FY 16/17 Budget

$0.0

$5.5

$(5.5)

$0.4

$(5.9)

$0.0

$4.8

$(4.7)

$0.3

$(5.0)

$(8)

$(6)

$(4)

$(2)

$0

$2

$4

$6

$8


Deprec


Millions

Support Services


Documents

EXECUTIVE DIRECTOR’S REPORT TO THE FOR SEPTEMBER 2016 · Cat Daddy, LLC DBA Voodoo Doughnut – Permit and Rig ht of Entry for Food Service Purposes Location: T-2 Term: August 13,