executive director’s report to the · 2016. 5. 6. · hillsboro aero academy, llc – second...

EXECUTIVE DIRECTOR’S REPORT TO THE

PORT OF PORTLAND COMMISSION FOR APRIL 2016

SAFETY REPORT

The first calendar year quarter safety performance showed continued signs of improvement in both frequency and severity of incidents, compared to the first calendar year quarter of 2015. While total incidents in March 2016 increased from the prior two months, they are still below last year for the same period. Monthly Report of Injury Incidents

Administrative One non-recordable incident reported:

• An employee slipped on an icy boat ramp, fell and suffered a contusion to the knee. (Occurred in February 2016; reported in March 2016.)

Aviation

One lost-time recordable, and four non-recordable incidents were reported:

• An employee strained a calf muscle while rushing from the terminal to a patrol car in response to a high priority call.

• An employee sending a hose through the hose washer suffered small abrasions when a coupling swung up and struck him above the left eye.

• An employee bent to retrieve dropped paperwork. Upon standing, he struck his head on an open locker door and suffered a laceration.

• An employee performing a truck check sustained a laceration when he struck his left eye area on a compartment door spring/bracket.

• An employee slipped while descending wet stairs. In catching himself, he hyper-extended his arms and strained both shoulders.

Navigation

One non-recordable incident reported:

• Employee slipped and fell while walking the deck of the water crane barge and suffered a contusion to the left knee and a strained hip.

2

AVIATION REPORT

Passengers

March 2016 passenger volumes increased 10 percent compared to March 2015. Seat capacity increased 11.5 percent, with the load factor decreasing 1.2 points to 84.4. The growth in seat capacity represents about 2,800 more daily departing seats, or about 24 more flights compared to March 2015. Volumes this year were impacted positively by the international track event, TrackTown, which featured 1,200 athletes and their team members from 200 different countries.

3

Month/Month % change FYTD % change

March July-March

Passengers 10.0% 9.0%

Concessions Revenue 12.1% 10.9%

Rental Car Revenue 7.1% 4.5%

Parking Revenue 6.5% 7.7%

Concessions Revenue

Combined terminal concessions operations reported a 12.1 percent, or $122,000, rent increase on the month, against a 10 percent passenger increase. Net plus rent performances from new and transitioning operators of $131,000 were the primary factors that impacted this performance. Rental Car Revenue

Rental car operations reported a 7.1 percent, or $96,000, rent increase on the month compared to last year, against a passenger increase of 10 percent. This reflects all operators reporting revenues at Minimum Annual Guarantee (MAG), with the exception of Airport Van Rental and Payless, which have no MAGs and are new to PDX this fiscal year. Additionally, Alamo and Budget are being invoiced at new, higher MAGs reflective of the previous year’s performance.

4

Parking Revenue by Lot

Long-term revenue remains flat year-to-date as the garage continues to be at capacity mid-week and Level 7 of the short-term garage is not being used as an extension of long-term. At $5.3 million, this is the highest revenue March on record and the second highest revenue month on record after October 2015 at $5.6 million, prior to the bank adjusted final revenue. March parking transactions were up 10 percent against March 2015 and up 9 percent year-to-date.

Product Revenue Variance YTD Variance

Short-Term $1,551,405 22% 15%

Long-Term $1,780,096 -5% 0%

Economy $1,932,612 7% 10%

Valet $115,675 24% 28%

Total $5,379,788 7% 8%

CAPITAL GRANTS

Portland International Airport (PDX) Staff submitted a reimbursement request to the Federal Aviation Administration (FAA) for the Airport Improvement Program – Acquire Six CNG Buses (VALE) project in the amount of $33,166 (Agreement No. 03-41-0048-073). This grant has been officially closed by the FAA, for a total funding amount of $331,653.

Staff submitted a reimbursement request to the FAA for the Airport Improvement Program – Replace Access Control System project in the amount of $980,014 (Agreement No. 03-41-0048-075).

Staff submitted a reimbursement request to the Transportation Security Administration for the Law Enforcement Officer program in the amount of $11,600 (Agreement No. HSTS0213HSLR118).

Staff submitted a reimbursement request to TriMet for the Law Enforcement Officer program in the amount of $43,806 (Agreement No. GS150820LG).

Staff submitted a reimbursement request to the Federal Bureau of Investigation for the JTTF program in the amount of $669 (Agreement No. 03-026). Marine Staff submitted a reimbursement request to the Oregon Department of Transportation (ODOT) for the ConnectOregon III – Terminal 6 (T-6) Crane Upgrades project in the amount of $8,382 (Agreement No. 26915).

Staff submitted a reimbursement request to ODOT for the ConnectOregon IV – T-6 Wharf Optimization project in the amount of $27,197 (Agreement #28695).

Staff submitted a reimbursement request to ODOT for the ConnectOregon V – T-6 Crane Drive Electronics project in the amount of $607,435 (Agreement No. 30128).

5

MARINE & INDUSTRIAL DEVELOPMENT REPORT

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

March 2016 Fiscal Year-to-Date

Total Tonnage 8.0% -28.5% Containers (TEU) -94.5% -97.1% Import Full Containers -100.0% -100.0% Export Full Containers -80.2% -92.2% Breakbulk ––––– -60.1% Autos 48.6% 15.7% Mineral Bulk -17.6% -21.5% Grain 60.9% -16.0%

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PROJECT COMPLETION REPORT

The following construction contracts, previously awarded by the Commission, have been completed: Entrance Road Rehabilitation Phase 2 - PDX

Approved by Port Commission July 8, 2015 Contract Award Amount $1,019,019.00 Authorized Contract Amendments $15,294.34 Final Contract Amount $1,034,313.34 Taxiway E North Rehabilitation – PDX

Approved by Port Commission March 11, 2015 Contract Award Amount $11,682,488.00 Authorized Contract Amendments $690,640.00 Quantity Underruns $240,613.70 Final Contract Amount $12,132,514.30

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International Arrivals Bus Canopies – PDX

Approved by Port Commission July 8, 2015 Contract Award Amount $634,000.00 Authorized Contract Amendments $169,760.92 Final Contract Amount* $803,760.92

* The original contract was exceeded by 10% due primarily to a comprehensive post-bid re-design needed to alleviate conflict with underground utility infrastructure. REAL ESTATE TRANSACTIONS EXECUTED PURSUANT TO DELEGATED AUTHORITY Naito Corporation DBA Made In Oregon – Ninth Amendment to Retail Concession Lease Location: PDX Term: Effective March 7, 2016 Use Amendment No. 9: Adds three, one-year options to extend the lease. Powell's Books, Inc. – Sixth Amendment to Retail Concession Lease Location: PDX Term: Effective March 21, 2016 Use: Amendment No. 6: Adds three, one-year options to extend the lease. Honeywell International Inc. – Eighth Amendment to Ground Lease Location: Portland International Center (PIC) Term: Effective March 21, 2016 Use: Amendment No. 8: Extends the term for an additional three months. Ameriflight, LLC – Consent to Sublease to Facility Lease Location: PDX Term: Effective March 7, 2016 Use: The Port consents to the sublease to Empire Airlines, Inc., for the purpose of

short-term storage and maintenance of aircraft. Monaco 3 Inc. DBA Petite Provence – Fourth Amendment to Food and Beverage Concession Lease Location: PDX Term: Effective March 7, 2016 Use: Amendment No. 4: Adds three, one-year options to extend the lease. Cascade Station Retail Center LLC – Consent to Sublease to Ground Lease Location: PIC Term: Effective March 1, 2016 Use: The Port conditionally consents to the sublease with England Logistics, LLC.

8

CCM Airport LLC DBA CC McKenzie Shoes & Apparel – Fourth Amendment to Retail Concession Lease Location: PDX Term: Effective March 28, 2016 Use: This amendment adds three, one-year options to extend the lease and

exercises the first option. MN Airlines LLC DBA Sun Country Airlines – Reissued Letter of Authorization to Conditional Letter of Authorization Location: PDX Term: Effective March 15, 2016 Use: This reissued letter sets the new security deposit for MN Airlines, LLC, to

operate at PDX under Ordinance 433-R. LIT Industrial Limited Partnership – Consent to Assignment to Ground Lease Location: PIC Term: Effective March 9, 2016 Use: The Port consents to an assignment of the lease to LIT Industrial Limited

Partnership after PDX Logistics Center I, LLC, assigned its interest in the leasehold to LIT Industrial Limited Partnership.

LIT Industrial Limited Partnership – Estoppel Certificate of Declarant Regarding Declaration of Covenants, Conditions and Restrictions for PIC to Ground Lease Location: PIC Term: Effective March 9, 2016 Use: Pursuant to PDX Logistics Center I, LLC, sale to LIT Industrial Limited

Partnership of its leasehold interest, the Port, as owner of the property, has been asked to execute this Estoppel Certificate.

FedEx Ground Package System, Inc. – First Amendment to Sale Agreement and Receipt for Earnest Money Location: Troutdale Reynold Industrial Park (TRIP) Term: Effective March 18, 2016 Use: Amendment No. 1: Amendment removes the requirement from the PSA for

FedEx to enter into an Option Agreement for purchase of TRIP Lot 10 and to relinquish Buyer's Right of First Opportunity for TRIP Lot 6.

Bulkogi DBA Bulkogi Fusion – Second Amendment to Food Cart Permit Location: PDX Term: Effective December 4, 2015 Use: Amendment No. 2: This amendment terminates the lease as of December 4,

2015.

9

Goodling Land Management, LLC – Consent and Agreement to Land Management Agreement Location: PDX Term: Effective March 24, 2016 Use: This agreement allows Goodling temporary "run through" access to Port-owned

property for the Hop Hop Marathon event. FedEx Ground Package System, Inc. – Memorandum of Option Agreement Location: TRIP Term: Effective March 14, 2016 Use: This document states that the Port is granting FedEx the exclusive option to

purchase property in TRIP for additional possible future expansion. FedEx Ground Package System, Inc. – Special Warranty Deed Location: TRIP Term: Effective March 18, 2016 Use: Deed for the transaction from the Port to FedEx consisting of the sale of Lot 1 of

TRIP. Aybla Mediterranean Grill Inc. – Food Cart Permit Location: PDX Term: Effective April 4, 2016 Use: Short-term permit for a food card in the Oregon Market at PDX. Morphotrust USA, LLC – PDX Terminal Premises License Agreement Location: PDX Term: Effective March 17, 2016 Use: Short-term license for a pilot project of the TSA Precheck application service. The Whole Bowl, Inc. – Food Cart Permit Location: PDX Term: Effective April 15, 2016 Use: Short-term permit for a food cart in the Oregon Market at PDX. You Me Her Productions BC, Inc. – Permit and Right of Entry for Photography and Filming Location: PDX Term: October 3, 2015 Use: Permit for filming in various areas of PDX. Avis Budget Car Rental, LLC – Permit and Right of Entry Location: PDX Term: Effective March 1, 2016 Use: This permit allows Avis Budget to have access to a parking area for temporary

overflow parking of rental cars.

10

Panda Express, Inc. – Eighth Amendment to Food & Beverage Concession Lease Location: PDX Term: Effective March 9, 2016 Use: Amendment No. 8: Adds three, one-year options to extend the lease. Hillsboro Aero Academy, LLC – Second Amendment to Ground Lease (Parcel A) Location: Hillsboro Airport (HIO) Term: Effective April 7, 2016 Use: Amendment No. 2: With this amendment, lessee exercises the option to extend

the lease for an additional 10 years. Hillsboro Aero Academy, LLC – Second Amendment to Ground Lease (Parcel B) Location: HIO Term: Effective April 7, 2016 Use: Amendment No. 2: With this amendment, lessee exercises the option to extend

the lease for an additional 10 years. Airport Terminal Services, Inc. – Operating Agreement Location: PDX Term: Effective November 1, 2015 Use: This agreement sets terms and allows Airport Terminal Services to provide

baggage handling services at PDX. Visual Aid, Inc. – Permit and Right of Entry for Photography and Filming Location: PDX Term: March 31, 2016 Use: Permit for filming from 3:30 pm to 4:30 pm at Portland International Airport.

Contracts Over $50,000 Pursuant to Delegated Authority

Monthly Report for April 2016 (March Activity)

TitleRequestor

DepartmentVendor Name

P.O. Amount

Purchase video cards for PDX displays.

Information Technology

CDW Government, Inc.

$52,623

Obtain Lenovo hardware support services.


Lenovo, Inc. $63,866

Obtain consulting services to perform an assessment of current equipment and daily monitoring of the Multilateral Flight Tracking System.

Airport Operations Saab Sensis Corporation

$72,310

Obtain engineering services for the Marine Terminal 4, Berth 411 Access Walkway Project.

Engineering Project Development

JAS Engineering, Inc.

$89,945

Obtain reprographic services. Engineering Project Development

Precision Images $90,000

Obtain pre-construction services related to the PDX Rental Car Quick Turnaround Facility Project.


Hoffman Construction Company of Oregon

$143,525

Obtain renewal of annual support services for JD Edwards software.


Oracle America, Inc.

$151,804

New Purchases

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

Purchase a truck tractor with fifth wheel and snow plow.

PDX Maintenance Brattain International Trucks, Inc.

$171,586

Obtain construction services for the PDX Communication Center Renewal Project.


Market Contractors LTD

$177,850

Purchase a truck tractor with dump body and snow plow.

PDX Maintenance Brattain International Trucks, Inc.

$200,358

Obtain property insurance brokerage services.

Risk Management Alliant Insurance Services, Inc.

$312,241

Obtain construction services for the Air Cargo Road Rehabilitation Project.


Kerr Contractors, Inc.

$571,950

Obtain construction services for the East Landside Stormwater Enhancement Project.


McClure and Sons, Inc.

$689,886

Obtain construction services for the PDX Concourse C Freight Elevator Project.


COR Construction, Inc.

$1,054,757

Obtain greenway improvements on Swan Island.

Planning & Development

Daimler Trucks North America LLC

$1,180,000

Obtain construction services related to the PDX Terminal and Central Utility Plant (CUP) Substation Upgrade Project.


Dynalectric Company

$1,458,197

Obtain construction services related to the PDX West Heating, Ventilating and Air Conditioning Replacement and Exterior Roof Rehabilitation Project.


Hydro-Temp Mechanical, Inc.

$8,439,997

TitleRequestor


Original Amount

Previous Changes to

Contract

Current Change to Contract

New Contract Total

Administrative action to add funding to obtain an additional year of subscription services to airport information portal.

Airport Operations Passur Aerospace, Inc.

$61,800 $61,800 $123,600

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.

Amendment No. 10 to purchase additional industrial supplies.

Navigation Grainger $45,000 $399,150 $72,024 $516,174

Amendment No. 2 to obtain additional consulting support for the Economy Exit Plaza Replacement Project.


Mackenzie $85,514 $191,039 $74,617 $351,170

Change orders Nos. 13-18 to obtain additional construction services for the Vehicle and Equipment Storage Facility Project.


First Cascade Corporation

$1,677,309 $86,471 $1,763,780

Change orders Nos. 1 and 2 to obtain additional construction services related to the PDX deicing treatment system.


McKinstry Co., LLC

$18,422 $95,083 $113,505

Amendment No. 3 to obtain additional maintenance services for chiller equipment replacement in the CUP.

Airport Operations Trane U.S., Inc. $194,553 $590,036 $103,270 $887,859

Change orders Nos. 1-14 for construction services related to the General Aviation West Redevelopment Phase I Project.


Kodiak Pacific Construction Co.

$3,635,635 $505,106 $4,140,741

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 No. 864 to obtain design services for storefronts at PDX Concourse C East.


ZGF Architects LLP

$50,223 $50,223 $963,205

Task order against contract No. 928 to obtain a safety assessment related to the PDX Taxiway B Center Rehabilitation Project.

Planning & Development

LeighFisher, Inc. $62,814 $62,814 $214,344

Task order against contract No. 744 to obtain construction support services for various Port projects.


URS Corporation $74,000 $74,000 $1,616,730

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.

Task order against contract No. 742 to obtain inspection services for various Port projects.


Hatch Mott Macdonald Holdings, Inc.

$95,200 $95,200 $2,274,530

Task order against contract No. 866 to obtain architectural services for the PDX Pet Relief Area.


MWA Architects, Inc.

$102,638 $102,638 $500,828

Task order against contract No. 864 for architectural services for the PDX Post Security Concessions Redevelopment Project.


ZGF Architects LLP

$127,728 $127,728 $963,205

Task order against contract No. 968 to obtain annual elevator, escalator, and moving walkway maintenance services.

Airport Operations Schindler Elevator Corporation

$1,550,080 $1,550,080 $1,550,080

Port of Portland Operating & Financial Results

FY 2015-16 through March 31, 2016

General Fund

Marine

AnnualAdopted

Budget

Actual

Amounts Variance Adopted

Budget VOLUMESAutos (Units) 196,779 213,647 8.6% 267,000Breakbulk (Short Tons) 69,997 124,891 78.4% 110,232Containers (TEUs) 71,252 2,897 (95.9%) 94,000Grain Bulk (Short Tons) 3,377,483 2,575,642 (23.7%) 4,409,247Mineral Bulk (Short Tons) 3,933,107 3,148,964 (19.9%) 5,389,200

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 including land sales lag on a fiscal year to date (YTD) basis primarily due to timing of land

sales. In March the Port sold TRIP lot 1 to FedEx for $3.3M; lots 11 and 12 are forecast to close in FY 16 17.

YTD operating expenses including land sales are $21.8M under budget; excluding land sales, YTD operating

expenses are $10.2 million under budget. The key variances are listed below:

• cost of property sold ($11.6M under budget);

• container carrier incentive payments ($2.0M under budget);

• position vacancies (personnel $2.7M under budget);

• timing of contracts, professional & consulting services expenses ($4.0M under budget); and

• longshore labor expense is $1.3M under budget due to lower than anticipated crane maintenance activity at

T 6.

$(20)

$(10)

$0

$10

$20

$30

$40

$50

$60

$70

Op Revenue Op Exp Excl

Deprec

OIBD Deprec Op Inc / (Loss)

Millions

Curr Mo Budget Curr Mo Actual YTD Budget YTD Actual

$(10)

$(5)

$0

$5

$10

$15

$20

$25


Deprec


Millions


Marine Volumes:

Autos – YTD auto volumes are 9% higher than forecast and 5% higher than last year due to Ford exports.

Breakbulk – YTD tonnage is 78% higher than forecast due to the timing of ship calls and an unexpected shipment

of lead ingots. However, compared to last year YTD breakbulk volume is only 1% higher.

Containers – TEUs are down almost 100% from the forecast and last year now that Westwood is the only carrier

calling Portland amid the labor issues at T 6.

Grain Bulk – YTD grain volumes are 24% less than forecast and 16% lower than last year. Demand is currently

very low. In addition, a strong dollar means buyers can purchase grain elsewhere at a lower relative price.

Mineral Bulk – Overall, volumes are down 20% from the forecast and 21% from last year due primarily to lower

than expected 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 in line with the Adopted Budget. The Port sold TRIP lot 1 to

FedEx in March for $3.3M. Land sale revenues are $11.8M under budget due to timing of the sales of TRIP lots 11

and 12, which were expected to close before November but now aren't expected to close until FY 16 17. YTD

operating expenses excluding land sales are $1.7M under budget, with the largest variances listed below:

• Contracts, professional & consulting services are $791K under budget due to the timing of Gresham Vista

traffic study and mitigation expenses ($250K), Hayden Island environmental expenses ($184K), expenses

related to TRIP land sales ($100K), and Government Island management fees ($50K).

• Personnel services are $301K under budget due to position vacancies.

• Interdepartmental charges are $449K under budget due to lower than anticipated services received from

Marine and Engineering.$(5)

$0

$5

$10

$15

$20

$25

$30


Deprec


Millions


YTD operating revenues are $518K higher than budget due to Dredge repower loan reimbursements from the

Corps of Engineers that were not assumed in the budget. YTD operating expenses before depreciation are $128K

over budget due to materials and supplies purchases in March for site prep projects for the upcoming FY 16 17

dredging season.

$(2)

$0

$2

$4

$6

$8

$10

$12


Deprec


Millions


Marine Operating Results:

YTD operating revenues are $3.1M less than the Adopted Budget due to lower ICTSI maintenance services

reimbursement revenues; lower than anticipated potash tonnage at T 5; and lower than anticipated grain

volumes. YTD operating expenses are $6.3M under budget, with the largest variances listed below.

• Other expenses are $2.0M under budget due to only $46K in actuals for the T 6 carrier incentive program

(budget = $2M).

• Longshore labor expense is $1.3M under budget due to lower than anticipated crane maintenance activity at

T 6.

• Contracts, professional & consulting services are $1.2M under budget due to Berth 501 & 503 grading

projects not moving forward based on hydrographic survey results ($200K), T 2 and Berth 401 dredging

project savings (~$66K), timing of master planning and environmental expenses ($610K), and lower than

anticipated marketing and business development outside services expenses ($182K).

• Personnel services are $903K under budget primarily due to vacant positions and lower than budgeted

maintenance overtime as a result of lower than anticipated maintenance services.

• Materials & supplies expenses are $586K under budget primarily due to lower than anticipated materials for

T 6 cranes.

• Travel and management expenses are $255K under budget due mostly to lower than budgeted expenses for

various marketing events.

Dredging Volumes Annual

Adopted

Budget

Actual

Amounts Variance

Adopted

Budget

Dredging Days 105 95 (9.5%) 120

Cubic Yards Dredged 2,116,921

Current Year-to-Date

Port of Portland Operating & Financial Results

FY 2015-16 through March 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 $50K, primarily due to higher than expected rental car revenues

and landing fee revenues at HIO.

YTD operating expenses are over budget by $560K, primarily due to a $470K write off for Troutdale's Runway 7

25 non capitalized costs as well as higher than budgeted water and sewer costs (over $110K).

$(4.0)

$(3.0)

$(2.0)

$(1.0)

$0.0

$1.0

$2.0

$3.0

$4.0


Deprec


Millions


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 almost $2.0M under budget, with the largest variances listed

below:

• Personnel services are $1.5M under budget due to vacant positions.

• Contracts, professional & consulting services are $855K under budget, mosty due to timing of IT outside

services expenses.

• Other expenses are $237K under budget due to the timing of software expenses.

• Travel and management expenses are $236K under budget due to timing.

• Offsetting these lower expenses, interdepartmental transfers are $1.1M over budget due to lower than

anticipated services provided by Engineering and capitalized labor for both IT and Engineering.

YTD airline revenues are $3.0M higher than budget due to higher than expected landing activity (over $1.1M),

common use rentals (over $970K), and leased terminal space (over $200K). Retail, food and beverage revenues

are $180K higher than budget as a result of higher than expected passenger activity. Other non airline revenues

are $425K higher than budget as a result of higher utility reimbursements (over $230K), as well as higher PDX GA

landing activity (over $160K), and other miscellaneous and concessions revenues (over $112K).

YTD ACC expenses are $2.7M below budget. Personnel services expense is $880K under budget due to police,

maintenance, and admin position vacancies. Materials and services are $1.5M under budget, primarily due to

timing of outside services related to the terminal (down $550K), custodial services (down $200K), deicing

environmental costs (down $215K), other aviation environmental expenses (down $190K).

YTD parking revenues are $2.7M higher than budget due to higher passenger volume and higher than expected

parking activity. Rental car revenues are in line with the Adopted Budget. Other PCC revenues are $1.2M higher

than budget as a result of higher than expected transportation network companies (e.g. Uber, Lyft; over $240K),

in flight meal concessions (over $235K), hotel revenues (over $185K), PIC revenues (over $150K), as well as other

PDX GA and cargo revenues.

PCC expenses are $1.2M lower than budget. Personnel services expense is $440K under budget due to police,

maintenance, and admin position vacancies. Materials and services are $740K under budget, primarily due to

timing of outside consulting services related to facility studies and timing of environmental expenses related to

undeveloped properties.

$(20)

$0

$20

$40

$60

$80

$100

$120

Revenues Expenses (excl

Deprec)

Debt Service &

Coverage

Surplus / (Deficit)

Millions

YTD Budget YTD Actuals

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

Parking

Revenues

Rental Cars

& Other Rev

Expenses

(excl

Deprec)

Debt Service

& Coverage

Revenue

Sharing

Income

Millions

YTD Budget YTD Actual

Passengers traveling through PDX are a key driver of revenues and expenses for the Airport. YTD, nearly 13.0

million total passengers have utilized PDX, exceeding the prior year by 9.0% (and the budget by 4.3%). Current

forecasts are for PDX to reach a new record of 17.2 million passengers for the fiscal year. 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 JunMillions

FY 14/15 Actual FY 15/16 Actual FY 15/16 Budget

$(40)

$(30)

$(20)

$(10)

$0

$10

$20

$30


Deprec


Millions


*LIBOR: London Inter Bank Offer Rate. The interest rate that banks charge each other for loans.

PORT OF PORTLAND Investment Report

Quarter Ending March 2016 YIELD COMPARISONS March

Fiscal

Year-to-Date 12 Month Moving Average

3/31/16 3/31/15

Port unrestricted portfolio 1.03% 0.98% 0.96% .80%

Series 22 construction funds 0.59% 0.49% 0.46% .32%

Local Government Investment Pool (LGIP)

0.75%

0.60%

0.58%

.53%

90 day LIBOR* 0.63% 0.47% 0.42% .24%

PORTFOLIO COMPOSITION

Port of Portland Investment Portfolio

Unrestricted investments $414,483,000

Unrestricted LGIP 22,111,346

Series 22 construction investments 45,500,000

Series 22 construction LGIP 4,952,091

Total portfolio $487,046,437

Maturity Schedule Actual Portfolio Policy Minimum

1 year or less $186,136,437 38% none

2 years and under $328,735,437 67% 55%

3 years and under $458,008,437 94% 75%

5 years and under $487,046,437 100% 100%

Interest Earnings Unrestricted Portfolio

Unrestricted LGIP

Total Unrestricted

January 2016 $326,104 $17,265 $343,369

February 2016 $312,674 $16,380 $329,054

March 2016 $353,641 $17,165 $370,806

Quarter Total $992,419 $50,810 $1,043,229 COMMENTS In the last quarter, the composition of the portfolio had minor changes in maturity distribution and diversification, with a small 3% distribution shift increasing the three- to five-year maturity range. Previously, the Federal Open Market Committee signaled to the markets that the median expectation was for four rate hikes in 2016. That forecast was trimmed in March as the median FOMC member forecast now calls for just two hikes in 2016. In addition, 2017 and 2018 forecast a slow pace of rate increases. As we move forward in this low-rate environment, in the next quarter staff will continue building the investment ladder with investments in the three- to five-year maturity range. 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.

69%2%

21%

6%2%

Port of Portland Portfolio Diversification

Unrestricted Funds as of 3/31/16

AGENCIES

TREASURIES

CORPORATE INDEBTEDNESS

LGIP

MUNICIPAL OBLIGATIONS

Apr-

15

May-

15

Jun-

15Jul-15

Aug-

15

Sep-

15

Oct-

15

Nov-

15

Dec-

15Jan-16

Feb-

16

Mar-

16

Port* 0.80% 0.81% 0.83% 0.84% 0.86% 0.88% 0.90% 0.91% 0.92% 0.93% 0.94% 0.96%

LGIP 0.52% 0.52% 0.52% 0.52% 0.52% 0.52% 0.52% 0.52% 0.53% 0.54% 0.55% 0.58%

LIBOR 0.25% 0.25% 0.25% 0.26% 0.26% 0.27% 0.28% 0.30% 0.33% 0.36% 0.39% 0.42%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

Port of Portland 12 Month Moving Average Yield Comparison

Port*

LGIP

LIBOR

Port of Portland Allocation of non-specific cash & investments available*

As of March 31, 2016, the Port had $188 million in funds available for the General Fund and $251 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 March 31, 2016 and includes investments, LGIP and cash accounts.

43%57%

General Fund

PDX

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