EXECUTIVE DIRECTOR’S REPORT TO THE PORT OF PORTLAND COMMISSION FOR JULY 2016 SAFETY REPORT The Port of Portland’s June 2016 safety performance showed a slight increase in both frequency and severity, as compared to the first five months of the year; however, Calendar Year 2016 total claims and incidents for the first and second quarters were significantly lower than the same time periods for Calendar Year 2015. Details of these results can be found in the following graphs. Monthly Report of Injury Incidents Administrative Two incidents were reported: one non-recordable and one near miss. • An employee was attending the Health & Safety Fair and trying acupuncture. Shortly after receiving acupuncture, the employee became nauseated and fainted. • An employee was swiping her badge for the door between distribution and the first floor (the door by the ATM). The door swung open as someone was entering the first floor from the other side and the employee avoided being hit by the door. Aviation Five incidents were reported: one lost-time recordable, three non-recordable and one near miss. • An employee was pulling a damaged stop sign post out of the ground. The post was heavier than anticipated and the employee strained his lower back. • An employee was driving on the airfield perimeter road and lost control of the vehicle. The vehicle veered off the roadway and into a fence. The employee sustained abrasions to an arm when the airbag deployed. • An employee was directing traffic on the upper roadway at the terminal. A driver was on a cell phone and had pulled just beyond a stop sign. The employee walked around to talk to the driver who, as he drove off, bumped the employee’s right side and back. • An employee was performing preventive maintenance on the baggage handling system from a catwalk. The employee did not bend low enough when walking under a low hanging pipe and bumped his head. The pipe is padded and marked with caution tape. • While driving a Port vehicle, an employee avoided a head-on collision with a sweeper truck. A semi-truck that was parked in the inbound lane of the access road at PDX Maintenance created a visibility hazard.
Transcript
EXECUTIVE DIRECTOR’S REPORT TO THE
PORT OF PORTLAND COMMISSION FOR JULY 2016
SAFETY REPORT
The Port of Portland’s June 2016 safety performance showed a slight increase in both frequency and severity, as compared to the first five months of the year; however, Calendar Year 2016 total claims and incidents for the first and second quarters were significantly lower than the same time periods for Calendar Year 2015. Details of these results can be found in the following graphs. Monthly Report of Injury Incidents
Administrative
Two incidents were reported: one non-recordable and one near miss.
• An employee was attending the Health & Safety Fair and trying acupuncture. Shortly after receiving acupuncture, the employee became nauseated and fainted.
• An employee was swiping her badge for the door between distribution and the first floor (the door by the ATM). The door swung open as someone was entering the first floor from the other side and the employee avoided being hit by the door.
Aviation
Five incidents were reported: one lost-time recordable, three non-recordable and one near miss.
• An employee was pulling a damaged stop sign post out of the ground. The post was heavier than anticipated and the employee strained his lower back.
• An employee was driving on the airfield perimeter road and lost control of the vehicle. The vehicle veered off the roadway and into a fence. The employee sustained abrasions to an arm when the airbag deployed.
• An employee was directing traffic on the upper roadway at the terminal. A driver was on a cell phone and had pulled just beyond a stop sign. The employee walked around to talk to the driver who, as he drove off, bumped the employee’s right side and back.
• An employee was performing preventive maintenance on the baggage handling system from a catwalk. The employee did not bend low enough when walking under a low hanging pipe and bumped his head. The pipe is padded and marked with caution tape.
• While driving a Port vehicle, an employee avoided a head-on collision with a sweeper truck. A semi-truck that was parked in the inbound lane of the access road at PDX Maintenance created a visibility hazard.
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Marine
One non-recordable incident was reported.
• An employee was replacing a turbine fan on a roof with a co-worker. A gust of wind shifted the load of the fan and the employee strained his neck and right shoulder.
AVIATION REPORT New and expanded services at PDX that have been announced in the past month include:
Start Date Airline Destination Frequency
Oct. 2016 PenAir Klamath Falls, OR Two per day M-F; one per day Sat.-Sun.
Nov. 2016 Cathay Pacific Hong Kong, China Two per week
Nov. 2016 Alaska Newark, NJ Daily
Dec. 2016 Alaska Sun Valley, ID Two per week; winter/summer seasonal
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Month/Month % change FYTD % change
Passengers 8.8% 9.2%
Concessions Revenue 20.3% 12.7%
Rental Car Revenue 10.5% 4.6%
Parking Revenue 4.7% 7.8% Passengers
Portland International Airport posted a new record in Fiscal Year 2015/16, serving 17,614,995 passengers, which represents a 9.2 percent increase over Fiscal Year 2014/15, or 1.49 million more travelers. Growth was fueled by a 10.8 percent increase in seat capacity, with the load factor falling only 1.2 points to 84 percent. New routes supported this growth allowing international traffic to increase by 9.8 percent, or 55,457 more passengers. Concessions Revenue
Combined terminal concessions operations reported a 20.3 percent, or $245,000, rent increase on the month, against an 8.8 percent passenger increase. This increase is due to sales/rent growth reflective of enplanement activity and new concepts, as well as rent escalations for some operators from 10-11 percent last year, to 14-15 percent this year. Rental Car Revenue
Rental car operations reflect a 10.5 percent, or $196,000, rent increase on the month over last year, against a passenger increase of 8.8 percent. All operators were in percent rent on the month, ranging from 1.0 to 108.3 percent above Minimum Annual Guarantee.
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Parking Revenue by Lot
Public parking revenue was $5,118,183, a 4.7 percent increase over June 2015. The negative variance in the long-term garage is due to a change in operations; when the long-term garage reaches capacity, we no longer direct vehicles to Level 7 of the short-term garage. Customers who would have parked in long-term are choosing one of the three other parking products. Parking transactions were up 8 percent over Fiscal Year 2014/15.
Product Revenue Variance YTD Variance
Short-Term $1,567,632 15.3% 15.6%
Long-Term $1,657,344 -5.7% -0.9%
Economy $1,790,967 6.2% 10.1%
Valet $102,240 22.0% 28.0%
Total $5,118,183 4.7% 7.8%
CAPITAL GRANTS
Portland International Airport
Staff submitted a reimbursement request to the Federal Aviation Administration (FAA) for the Airport Improvement Program (AIP) – Taxiway T&K Lights/Taxiway T Southwest project in the amount of $70,065 (Agreement No. 03-41-0048-072). This grant has been officially closed by the FAA, for a total funding amount of $7,614,878. Staff submitted a reimbursement request to the FAA for the AIP – Replace Access Control System project in the amount of $1,328,580 (Agreement No. 03-41-0048-075). Staff submitted a reimbursement request to the Transportation Security Administration (TSA) for the Law Enforcement Officer program in the amount of $12,400 (Agreement No. HSTS0216HSLR647). Staff submitted a reimbursement request to the TSA for the National Explosives Detection Canine Team program in the amount of $18,729 (Agreement No. HSTS0216HNCP464). Staff submitted a reimbursement request to TriMet for the Law Enforcement Officer program in the amount of $12,816 (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 $426 (Agreement No. 03-026).
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MARINE & INDUSTRIAL DEVELOPMENT REPORT
The figures in the table below show change relative to the prior year.
June 2016 Fiscal Year-to-Date
Total Tonnage 17.3% -21.3% Containers (TEU) -- -96.6% Import Full Containers -- -100.0% Export Full Containers -- -90.8% Breakbulk -100.0% -69.8% Autos 34.1% 14.0% Mineral Bulk -29.1% -23.8% Grain -- 6.9%
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PROJECT COMPLETION REPORT
The following construction contracts, previously awarded by the Commission, have been completed: Runway 13L – 31R Construction – HIO
Approved by Port Commission June 11, 2014 Contract Award Amount $3,526,205.60 Approved Change Order Bid Item Adjustments $455,637.41 Savings from Quantity Underruns $(267,549.77) Final Contract Amount $3,714,293.24 Vehicle and Equipment Storage Facility – PDX
Approved by Port Commission January 14, 2015 Contract Award Amount $1,486,346.00 Authorized Contract Amendments $290,720.13 Final Contract Amount* $1,777,066.13
*The final contract exceeded the original contract amount by more than 10 percent due primarily to contaminated soils investigated and discovered by the environmental department, installation of a rock pad under the building (per the City of Portland), installation of a wet sprinkler system and installation of a fire alarm system.
REAL ESTATE TRANSACTIONS EXECUTED PURSUANT TO DELEGATED AUTHORITY Host International, Inc. DBA Starbucks Corporation – Fourth Amendment to Food and Beverage Concession Lease Location: PDX
Term: Effective June 20, 2016
Use: Amendment No. 4: This amendment changes the termination dates for different locations.
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The Boeing Company – Consent to License Agreement to Lease Location: PDX
Term: June 11, 2016 to June 11, 2016
Use: This consent allows the Columbia Slough Watershed Council to use an area for parking of vehicles for the Explorando El Columbia Slough event.
Cascade Station Corporate Center I, Limited Partnership – Approval Letter to Amendment to Sublease to Ground Lease Location: Cascade Station
Term: Effective June 28, 2016
Use: Letter of conditional approval of first amendment to sublease to Aerotek, Inc. Target Corporation – Third Amendment to Amended and Restated Ground Lease Location: Cascade Station
Term: Effective June 24, 2016
Use: Parties desire to amend configuration of Utility Corridor to accommodate planned Port improvements to stormwater treatment and infrastructure.
Naito Corporation DBA Made In Oregon – Seventh Amendment to Retail Concession Lease Location: PDX
Term: Effective June 3, 2016
Use: Amendment No. 7: This amendment extends the term on a month-to-month basis. Oregon International Airshow, Inc. – Second Amendment to Multi-year Agreement Location: Hillsboro Airport (HIO)
Term: June 13, 2016 to June 30, 2018
Use: Amendment No. 2: This amendment extends the term for an additional two years. Prologix Distribution Services (West), LLC – Second Amendment to Lease of Storage Space Location: PDX
Term: Effective June 24, 2016
Use: Amendment No. 2: This amendment changes the term to month-to-month. State of Oregon – First Amendment to Lease of Improved Space Location: Troutdale Airport
Term: June 28, 2016 to June 30, 2017
Use: This amendment exercises the first option to extend the term for one year. Sester Farms, Inc. – Third Amendment to Agricultural Use License Location: Gresham Vista Business Park (GVBP)
Term: Effective June 2, 2016
Use: Amending the license to reflect that placement of soil by the City of Gresham under Permit No. 2014-1028 resulted in reduction of premises. The reduction was exchanged for a pump to be conveyed by Bill of Sale (Port Agreement 2012-033).
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Sprint Spectrum Realty Company, L.P. – Third Amendment to Wireless Site Operating and Use Agreement Location: PDX
Term: Effective June 27, 2016
Use: This amendment changes the term to month-to-month and adjusts the access fee. New Cingular Wireless PCS, LLC – Fourth Amendment to Wireless Site Operating and Use Agreement Location: PDX
Term: Effective June 24, 2016
Use: Amendment No. 4: This amendment extends the term of the agreement and clarifies provisions regarding the access fees.
Host International, Inc. DBA Starbucks Corporation – Second Amendment to Food and Beverage Concession Lease Location: PDX
Term: June 20, 2016 to August 31, 2016
Use: Amendment No. 2: This amendment terminates the lease. T-Mobile West Corporation – Fourth Amendment to Wireless Site Operating and Use Agreement Location: PDX
Term: Effective June 20, 2016
Use: Amendment No. 4: This amendment changes the term to a month-to-month basis and clarifies provisions for adjustments to the access fee.
Multnomah County, Oregon – First Amendment to Construction Permit Location: Troutdale Reynolds Industrial Park (TRIP)
Term: Effective June 16, 2016
Use: Amendment No. 1: This amendment allows the Port to proceed with construction on Multnomah County property at Sundial Road in TRIP as part of the Port's site development work.
Department of Homeland Security – Second Amendment to Other Transaction Agreement Location: PDX
Term: July 1, 2016 to June 30, 2017
Use: Amendment No. 2: This amendment extends the term and modifies provisions for the reimbursement of fixed electrical and janitorial costs for the security checkpoint and baggage area.
Northwest Insurance Group, Inc. – First Amendment to Facility Lease Location: HIO
Term: June 30, 2016 to June 30, 2018
Use: Amendment No. 1: This amendment provides for certain options to extend the term of the Lease.
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United States Department of Agriculture – Third Amendment to Permit and Right of Entry Location: Portwide
Term: July 1, 2016 to December 31, 2016
Use: Amendment No. 3: This amendment to permit authorizing the Department of Agriculture to access Port property to place traps to collect exotic insects for the purpose of surveys is being extended through and including December 31, 2016.
Use: Frost Bank has extended credit to LaTrelle's Galley, LLC on the condition that such credit be secured by a first priority lien and security interest in certain personal property assets. The Port has agreed to subordinate to Frost Bank any and all liens, security interests, claims, demands, causes of action, actions and other rights with respect to the Personal property assets of LaTrelle’s Galley, LLC.
Use: Frost Bank has extended credit to LaTrelle's Galley, LLC on the condition that such credit be secured by a first priority lien and security interest in certain personal property assets. The Port has agreed to subordinate to Frost Bank any and all liens, security interests, claims, demands, causes of action, actions and other rights with respect to the Personal property assets of LaTrelle’s Galley, LLC.
House Spirits Distillery LLC – First Amendment to Retail Concession Lease Location: PDX
Term: June 8, 2016 to November 30, 2023
Use: Amendment No. 1: This amendment changes the Premises and clarifies certain provisions of the Lease.
Naito Corporation DBA Made In Oregon – First Amendment to Retail Concession Lease Location: PDX
Term: Effective June 22, 2016
Use: Amendment No. 1: This amendment adds storage space and clarifies certain provisions of the Lease.
H. A. Andersen Company – Permanent Waiver & Release of First Opportunity to Purchase Real Property and Repurchase Right Relating to Construction Obligations and Change of Owner Notification Requirement to S.S. Hinsdale Trust to Warranty Deed Location: Mocks Landing Industrial Park
Term: Effective June 22, 2016
Use: Permanent waiver re: 6949 N. Cutter Circle.
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NewTower Trust Company Multi-employer Property Trust – Consent Letter to Ground Lease Location: Portland International Center
Term: Effective June 7, 2016
Use: Consent to draft assignment and assumption of Tenant's Interest; Landlord's Consent and Second Amendment to Sublease Agreement
ANI America, Inc. – Permanent Waiver and Release of First Opportunity to purchase Real Property and First Opportunity to Purchase Real Property and Construction Obligations to Special Warranty Deed with Restrictive Covenants Location: Rivergate Industrial District (RGID)
Term: Effective June 23, 2016
Use: The Port is permanently waiving its right of the first opportunity to purchase and construction obligations for this property in RGID.
Empire Airlines, Inc. – First Amendment to Permit and Right of Entry Location: PDX
Term: Effective June 13, 2016
Use: Amendment No. 1: This amendment changes the effective date of the Permit to a day later to accommodate the termination date of occupation of the same by another tenant.
City of Portland – Permit and Right of Entry Location: Vanport Wetlands
Term: May 1, 2016 to December 31, 2018
Use: This permit allows the city to assess and survey the water quality and physical habitat.
EAN Holdings, LLC DBA National Car Rental and Enterprise Rent-A-Car – Lease and Operating Agreement Location: HIO
Term: June 1, 2016 to June 30, 2019
Use: Long-term lease and operating agreement for the purpose of operating a rental car business at Hillsboro Airport.
Portland State University – Permit and Right of Entry Location: S. Rivergate Corridor and Vanport Mitigation Sites
Term: Effective June 1, 2016
Use: This permit allows PSU to monitor and observe wildlife. Tournament Golf Foundation, Inc. – Permit and Right of Entry Location: PDX
Term: June 20, 2016 to July 6, 2016
Use: Temporary parking on portion of land managed by Goodling Land Management for public golf event.
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PacifiCorp – Utility Easement Location: PDX
Term: Effective June 8, 2016
Use: PacifiCorp is granted an easement over, under, upon and across a portion of Port's property for the purpose of installing electrical distribution lines.
MAJ Airport LLC – Ground Lease Location: PDX
Term: June 9, 2016 to June 8, 2036
Use: Long-term lease for the construction and operation of a fueling station, convenience store, quick serve restaurants and a cell phone waiting lot at PDX.
MAJ Airport LLC – Consent to Sublease to 7-Eleven to Ground Lease Location: PDX
Term: June 6, 2016 to June 5, 2036
Use: This consent allows MAJ to lease space to 7-Eleven so they may operate a fueling station and convenience store at PDX.
Specht Development, Inc. – Sale Agreement and Agreement for Continuing Covenants Location: GVBP, Lot 9
Term: Effective June 10, 2016
Use: Sale of approximately 37.415 acres of vacant industrial land, known as Lot 9, at GVBP, including Port construction of certain sewer and power infrastructure but not including provision of a certain level of electrical capacity.
Trammell Crow Portland Development, Inc. – Sale Agreement and Receipt for Earnest Money Location: GVBP, Lots 1, 2 and 3
Term: Effective June 10, 2016
Use: Sale of approximately 28.74 acres of property, designated as Lots 1, 2 and 3 in the GVBP, to Trammell Crow Property Development, Inc.
City of Troutdale – Utility Easement Agreement Location: TRIP
Term: Effective June 13, 2016
Use: Port constructed ditch improvements and easement area are being granted to the City for its access and ongoing maintenance consistent with the City's National Pollutant Discharge Elimination System Permit.
Oregon International Airshow, Inc. – Lease of Improved Space Location: HIO
Term: September 1, 2015 to August 31, 2018
Use: Multi-year lease for office space in support of the Oregon International Airshow.
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Airway Science for Kids, Inc. – Facility Lease Location: HIO
Term: June 1, 2016 to June 30, 2018
Use: Two-year lease for space for the purpose of conducting youth instructional programs focusing on aviation and related math and sciences.
Obtain annual Microsoft software licensing and support services.
Information Technology
SHI International Corp
$471,432
Purchase of pipe for the Dredge Oregon .
Engineering Design Services
Somarakis Helix Elbow Piping LLC
$638,748
TitleRequestor
DepartmentVendor Name
Original Amount
Previous Changes to
Contract
Current Change to Contract
New Contract Total
Administrative action to add funds for an additional year of support for the PDX parking system.
Information Technology
Scheidt & Bachmann USA, Inc.
$194,370 $51,970 $51,970 $298,310
Administrative action to add funds for additional mechanical maintenance services on cranes at marine Terminals 2 and 6.
Marine Operations Harbor Industrial Services Corp
$3,180,000 $459,000 $125,000 $3,764,000
Change order Nos. 1-5 to obtain additional services for the Dredge Tender Ivanoff Hull and Propulsion System Modifications Project.
Engineering Project Development
JT Marine, Inc. $785,878 $157,283 $943,161
Amendment No. 4 to obtain additional technical assistance for the Port Waste Minimization Program.
Environmental Portland State University
$297,577 $444,884 $169,951 $912,412
Amendment No. 7 to obtain additional design services for the PDX Access Control System Replacement Project.
Engineering Project Development
Aviation Security Consulting, Inc.
$517,109 $4,788,483 $376,447 $5,682,039
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.
Administrative action to add funds for two additional years of recognition program services.
Human Resources Achievers $251,000 $442,500 $693,500
Various change orders to obtain additional site construction services related to the Troutdale Reynolds Industrial Park (TRIP).
Engineering Project Development
Goodfellow Brothers, Inc.
$17,441,435 $122,502 $1,326,190 $18,890,127
TitleRequestor
DepartmentVendor Name
Original Task Order Amount
Previous Changes to Task
Order
Current Change to Task Order
New Task Order Total
Total Contract Activity -
All Task Orders
Change orders No. 1 and 2 to task order against contract No. 976 to obtain additional construction services related to PDX checkpoint lobby improvements.
Engineering Project Development
Viking Engineering & Construction
$43,474 $80,132 $123,606 $809,766
Amendment No. 1 to task order against contract No. 747 to obtain additional janitorial supplies for airport and headquarters facilities.
Airport Operations Portland Habilitation Center, Inc.
$6,758,918 $100,000 $6,858,918 $19,654,811
Amendment No. 1 to task order against contract No. 952 to obtain on-call cleanup of illegal dumping on Port properties.
Environmental Terra Hydr, Inc. $55,000 $100,000 $155,000 $406,564
Task order against contract No. 831 to obtain annual hydrographic condition surveys of marine terminal berths.
Engineering Design Services
David Evans & Associates, Inc.
$116,198 $116,198 $464,220
Task order against contract No. 742 to obtain inspection support for various projects.
Engineering Project Development
Hatch Mott Macdonald Holdings, Inc.
$130,620 $130,620 $2,539,731
Task order against contract No. 742 to obtain inspection support for various projects.
Engineering Project Development
Hatch Mott Macdonald Holdings, Inc.
$150,000 $150,000 $2,539,731
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.
Amendment No. 1 to task order against contract No. 973 to obtain construction services for a pet relief area in the PDX terminal.
Engineering Project Development
Andersen Construction Company
$24,119 $228,979 $253,098 $253,098
Task order against contract No. 706 for water quality monitoring services for the Dredge Oregon .
Environmental Hart Crowser, Inc.
$372,468 $372,468 $1,892,291
TitleRequestor
DepartmentBuyer Name
Sale Amount
Sale of surplus vehicles and equipment.
Various Bar None Auction
$58,800
Contracts for Disposition of Surplus Property
Items in this category are reported from public sales of personal property deemed no longer needed by any Port program.
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 $15.4M less than the Adopted Budget due to lower ICTSI maintenance services
reimbursement revenues and timing of land sales. The budgeted sales of TRIP lots 11 and 12 ($12.2M) are
expected to close next fiscal year. Land sales total $13.7M for the year and include Gresham Vista lot 4 ($9.5M),
TRIP lot 1 ($3.3M), and a Swan Island lot ($869K).
YTD operating expenses excluding depreciation are $30.1M under budget. The key variances are listed below:
• cost of property sold ($11.3M under budget).
• container carrier incentive payments ($2.0M under budget).
• position vacancies ($4.0M under budget).
• contracts, professional & consulting services expenses ($10.1M under budget; ~$5.8M of this is variance
environmental accruals not yet booked).
• lower longshore labor for crane maintenance at T-6 ($1.6M under budget).
• lower equipment rental, repair and fuel expenses ($1.1M under budget).
$(30)
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Op Revenue Op Exp Excl
Deprec
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Mil
lio
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Curr Mo Budget Curr Mo Actual YTD Budget YTD Actual
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Op Revenue Op Exp Excl
Deprec
OIBD Deprec Op Inc / (Loss)
Mil
lio
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Marine
Curr Mo Budget Curr Mo Actual YTD Budget YTD Actual
Marine Volumes:
Autos – Auto volumes are 6% higher than forecast and 15% higher than last year due to significant growth in both
Hyundai imports and Ford exports as well as better than expected Honda imports following last year's slump when
Fit production moved to Mexico.
Breakbulk – YTD tonnage is 13% higher than forecast due to the timing of ship calls and an unexpected shipment
of lead ingots. However, YTD breakbulk volume is 29% lower than last year.
Containers – TEUs are down 96% from the forecast and 97% from the prior year. Westwood was the only
remaining carrier calling Portland amid the labor issues at T-6; their last ship call was May 21.
Grain Bulk – YTD grain volumes are 21% lower than forecast but 7% higher than last year. Demand is currently
very low; a strong dollar means buyers can purchase grain elsewhere at a lower relative price.
Mineral Bulk – Tonnage is down 19% from the forecast and 23% from last year due to lower potash volumes.
Portland Bulk was offline for the first two months of the fiscal year while their new shiploader was installed.
YTD operating revenues excluding land sales are $149K higher than budget due to higher than anticipated rent and
foreign trade zone fee revenues. Land sale revenues are $11.0M under budget due to timing of the sales of TRIP
lots 11 and 12, which were originally expected to close before November but now aren't expected to close until
FY 16-17. The Port sold Gresham Vista lot 4 to Subaru for $9.5M in September, TRIP lot 1 to FedEx for $3.3M in
March, and a Swan Island lot to Daimler for $869K in April. YTD operating expenses excluding depreciation and
land sales are $2.1M under budget, with the largest variances listed below:
• Contracts, professional & consulting services are $796K under budget due lower than anticipated Hayden Island
environmental and other outside services expenses ($230K), Gresham Vista traffic study and mitigation
expenses ($222K), expenses related to TRIP land sales ($124K), industrial land readiness and opportunity due
diligence expenses ($66K), Government Island management fees ($50K), design review and appraisal expenses
($38K), and outside services expenses for the landscape gardener shop ($25K).
• Interdepartmental charges are $598K under budget due to lower than anticipated services received from
Marine and Engineering.
• Personnel services are $366K under budget due to position vacancies and lower associated benefits expense.
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Op Revenue Op Exp Excl
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Mil
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Industrial Development
Curr Mo Budget Curr Mo Actual YTD Budget YTD Actual
In May the Port called a safety stand-down in response to a U.S. Army Corps of Engineers safety audit; the stand-
down continued through the month of June. This delayed the start of the 2016 dredging season, resulting in both
lower than budgeted operating revenues ($148K) and lower than budgeted operating expenses excluding
depreciation ($544K).
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Op Revenue Op Exp Excl
Deprec
OIBD Deprec Op Inc / (Loss)
Mil
lio
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Navigation
Curr Mo Budget Curr Mo Actual YTD Budget YTD Actual
Marine Operating Results:
YTD operating revenues are $4.5M less than the Adopted Budget due to lower ICTSI maintenance services
reimbursement revenues; lower than anticipated potash and grain volumes at T-5; and lower than anticipated
revenues at T-2 (lay dockage; lower wharfage rates for some commodities; crane rental revenues). YTD operating
expenses excluding depreciation are $9.1M under budget, with the largest variances listed below:
• Contracts, professional & consulting services are $2.5M under budget due to timing of T-4 environmental
accruals (~$1.2M), timing of master planning and environmental expenses ($579K), Berth 501 & 503 grading
projects not moving forward based on hydrographic survey results ($200K), timing of operating expenses
associated with the Berth 503 structural rehab project (only dock inspection completed in FY 15-16; ~$171K <
budget), lower outside services expenses for marketing and business development ($164K), and T-2 and Berth
401 dredging project savings (~$66K).
• Other expenses are $2.2M under budget due to only $46K in carrier incentive payments (budget = $2M) and
bad debt adjustments (~$242K under budget).
• Longshore labor expense is $1.6M under budget due to lower than expected crane maintenance at T-6.
• Personnel services are $1.3M under budget due to vacancies and lower maintenance labor and overtime
related to the decrease in activity at T-6.
• Materials & supplies are $722K under budget due to lower than anticipated expenses for T-6 cranes.
• Travel and management expenses are $446K under budget due to fewer than planned marketing events.
Dredging VolumesAnnual
Adopted
Budget
Actual
Amounts Variance
Adopted
Budget
Dredging Days 120 95 (20.8%) 120
Cubic Yards Dredged 2,116,921
Current Year-to-Date
Port of Portland Operating & Financial Results
FY 2015-16 through June 30, 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 $61K, primarily due to higher than expected rental car revenues and
fuel flowage fee revenues at HIO.
YTD operating expenses before depreciation are over budget by $619K, primarily due to a $460K write-off for
Troutdale's Runway 7-25 non-capitalized costs as well as higher than budgeted utilities costs (over $230K) and
bad debt expense of $77K. This is partially offset by lower contract and consulting services (under $88K) and
personnel costs (under $70K).
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Op Revenue Op Exp Excl
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General Aviation
Curr Mo Budget Curr Mo Actual YTD Budget YTD Actual
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 $3.6M under budget, with the largest variances listed below:
• Personnel services are $1.8M under budget due to position vacancies and lower associated benefits expense.
• Contracts, professional & consulting services are $1.2M under budget, mostly due to lower expenses for the IT,
Environmental Affairs and Human Resources departments.
• Other expenses are $429K under budget due to lower than expected software expenses.
• Rent expense is $388K under budget due to significantly lower than budgeted operating expenses and
depreciation for 1340 HQ Facility Management ($803K). This drives down support services departments' share
of the HQ rent allocation.
• Travel and management expenses are $223K under budget due to lower than anticipated conference expenses,
specifically in the Financial & Administrative Services and Public Affairs divisions.
• Partially offsetting these lower expenses, interdepartmental transfers are $916K higher than budget due to
lower Engineering department services provided and capitalized labor.
YTD ACC revenues are $4.7M higher than budget. Airline revenues are $3.6M higher than budget due to higher
than expected landing activity ($1.6M), common use rentals ($1.5M), and terminal rents ($488K). Retail, food
and beverage revenues are $584K higher than budget as a result of higher than expected passenger activity.
Other non-airline revenues are $542K higher than budget as a result of higher utility reimbursements ($233K),
higher PDX GA landing activity ($244K), and other concessions revenues ($65K).
YTD ACC expenses are $2.8M below budget. Personnel services expense is $1.1M under budget due to ACC's
share of police, maintenance, and admin position vacancies. Materials, services, and transfers are $1.7M under
budget, primarily due to terminal building and concession outside services (down $400K), deicing environmental
costs (down $220K), custodial services (down $220K), other aviation environmental expenses (down $120K), and
Allocated Support Services (down $600K).
YTD PCC revenues are $7.5M higher than budget. YTD parking revenues are $4.2M higher than budget due to
higher passenger volume and higher than expected parking activity. Rental car revenues are higher than Adopted
Budget $1.3M but this will likely come back in line with budget once the annual MAG adjustment is calculated.
Other PCC revenues are $1.9M higher than budget as a result of higher than expected transportation network
companies (e.g. Uber, Lyft; over $510K), in-flight meal concessions (over $330K), hotel revenues (over $290K),
unbudgeted Primeview and North cargo revenues (over $210K), PIC revenues (over $210K), and PDX GA revenues
(over $90K).
PCC expenses are $1.0M lower than budget. Personnel services expense is $488K under budget due to PCC's share
of police, maintenance, and admin position vacancies. Materials, services, and transfers are $515K under budget,
primarily due to CNG fuel reimbursements and lower fuel costs throughout the year (~$511K under), and lower
shared costs allocated to PCC (~$462K under); offsetting these reductions is a lower allocation for HQ Rent
resulting from lower M&S expenses and depreciation in the HQ Facilities business unit.
$0
$20
$40
$60
$80
$100
$120
$140
Revenues Expenses (excl
Deprec)
Debt Service &
Coverage
Surplus / (Deficit)
Mil
lio
ns
PDX ACC
YTD Budget YTD Actuals
$0
$10
$20
$30
$40
$50
$60
$70
Parking
Revenues
Rental Cars
& Other Rev
Expenses
(excl Deprec)
Debt Service
& Coverage
Revenue
Sharing
Income
Mil
lio
ns
PDX PCC
YTD Budget YTD Actual
Passengers traveling through PDX are a key driver of revenues and expenses for the Airport. For fiscal year 2015-
16, 17.6 million total passengers utilized PDX, exceeding the prior year by 9.2% (and the budget by 5.0%). The
higher passenger levels are a result of the continued growing economy and new flights added by nearly all 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. 1.0
1.2
1.4
1.6
1.8
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May JunMil
lio
ns
FY 14/15 Actual FY 15/16 Actual FY 15/16 Budget
$(40)
$(30)
$(20)
$(10)
$0
$10
$20
$30
$40
Op Revenue Op Exp Excl
Deprec
OIBD Deprec Op Inc / (Loss)
Mil
lio
ns
Support Services
Curr Mo Budget Curr Mo Actual YTD Budget YTD Actual
*LIBOR – London Inter Bank Offer Rate – The interest rate that banks charge each other for loans.
PORT OF PORTLAND Investment Report
Quarter Ending June 2016
YIELD COMPARISONS June
Fiscal
Year-to-Date 12 Month Moving Average
6/30/16 6/30/15
Port unrestricted portfolio 1.08% 1.00% 1.00% 0.83%
Series 22 construction funds 0.67% 0.46% 0.46% 0.34%
Local Government Investment Pool (LGIP)
0.88%
0.65%
0.65%
0.52%
90 day LIBOR* 0.65% 0.52% 0.52% 0.25% PORTFOLIO COMPOSITION
Port of Portland Investment Portfolio
Unrestricted investments $397,982,000
Unrestricted LGIP 40,984,161
Series 22 construction investments 39,000,000
Series 22 construction LGIP 3,791,742
Total portfolio $481,757,903
Maturity Schedule Actual Portfolio Policy Minimum
1 year or less $209,582,903 44% none
2 years and under $340,993,903 71% 55%
3 years and under $456,257,903 95% 75%
5 years and under $481,757,903 100% 100%
Interest Earnings Unrestricted
Portfolio Series 22
Construction Total
Earnings
April 2016 $368,103 $8,789 $376,892
May 2016 $390,801 $15,828 $406,629
June 2016 $386,726 $25,078 $411,804
Quarter Total $1,145,630 $49,695 $1,195,325 COMMENTS On June 15, the Federal Open Market Committee (FOMC) concluded its meeting and announced its decision to not increase the federal funds rate. Furthermore, the FOMC released updated economic projections that included a downgrade in its growth outlook and lowered expectations for future rate increases. After the announcement, U.S. Treasury rates declined and the markets pushed out their expectations for future Fed rate hikes. Overseas markets are now impacted with negative policy rates in much of Europe and Japan. Economists are on watch for the impact here in the U.S. as our relatively high yields may attract foreign capital, which may move rates even lower. Following the unprecedented U.K. vote to leave the European Union (EU), global financial markets have largely calmed. The direct effects to the U.S. economy will likely be minimal, but a period of uncertainty is expected until negotiations between the U.K. and EU are finalized. Note: Investment portfolio detail available upon request.
Investments Policy Limits: U.S. Treasuries 100%; U.S. Agencies 100%; Corp. Indebtedness 35%; LGIP $47,012,858 maximum
*Port yield shown excludes amounts on deposit in LGIP and restricted cash balances.
Port of Portland 12 Month Moving Average Yield Comparison
Port*
LGIP
LIBOR
Port of Portland
Allocation of non-specific cash and investments available*
As of June 30, 2016, the Port had $183 million in funds available for the General Fund and $266 million available for Portland International Airport. Non-specific balances reflect neither restricted monies such as construction bond proceeds from the general investment pool, nor do they reflect debt service funds held by the trustees.
*Allocation is an estimate generated based on accounting balances at 6/30/16 and includes investments, LGIP and cash accounts.
