SPECIAL COMMISSION BUSINESS MEETING August 14, 2017 at 1:30Pm AGENDA

SPECIAL COMMISSION BUSINESS MEETING August 14, 2017 at 1:30pm AGENDA

** Time Specific at 1:35pm – State of Washington Audit Report

I. CALL TO ORDER / PLEDGE OF ALLEGIANCE

II. APPROVAL OF CONSENT AGENDA

A. Commission Meeting Minutes

1. August 1, 2017 Special Commission Meeting Minutes (pg. 1-4)

B. Vouchers in the amount of $1,270,846.97 (pg. 5)

III. COMPLETION OF RECORDS – July Monthly Report (pg. 6-82) IV. EARLY PUBLIC COMMENT SESSION (total session up to 20 minutes and related to an item on the agenda)

V. PLANNING

A. Marine Terminal Stormwater Conveyance Change Order No. 2 (pg. 83-85)

B. 2nd Quarter Capital Budget Report (pg. 86-99)

C. Former Dungeness Pier Pile Removal (pg. 100-103) VI. PROPERTY No Items VII. MARINAS No Items VIII. AIRPORTS No Items IX. OTHER BUSINESS

A. **Time Specific at 1:35pm - State of Washington Audit Report

B. Quarter 2 Financial Report (pg. 104-144)

C. Quarter 2 Investment Report (pg. 145-153)

D. Letter of Appreciation for Former TAC Member, Mr. John Calhoun (pg. 154) X. PUBLIC COMMENT SESSION (total session up to 20 minutes and related to an item on the agenda)

XI. NEXT MEETINGS (pg. 155-156)

A. August 14, 2017 at 5:00pm in Forks – Special Joint Meeting with the City of Forks

B. August 29, 2017 at 9:00am – Special Commission Meeting

XII. UPCOMING EVENTS

A. Penticton, B.C. – Commissioner Tour of CLT Facility

XIII. EXECUTIVE SESSION The Board may recess into Executive Session for those purposes authorized under Chapter 42.30 RCW, the Open Public Meetings Act.

XIV. ADJOURN

RULES FOR ATTENDING COMMISSION MEETING • Signs, placards, and noise making devices including musical instruments are prohibited. • Disruptive behavior by audience members is inappropriate and may result in removal. • Loud comments, clapping, and booing may be considered disruptive and result in removal at the discretion of the Chair.

RULES FOR SPEAKING AT A SPECIAL COMMISSION MEETING • Members of the public wishing to address the Board on agenda related items only may do so during the designated times on the agenda or when recognized by the Chair. • Time allotted to each speaker is determined by the Chair and, in general, is limited to 3 minutes. • Total time planned for each public comment period is 20 minutes, subject to change by the Chair. • All comments should be made from the speaker’s rostrum and any individual making comments shall first state their name and city of residence for the official record. • Speakers should not comment more than once per meeting unless their comments pertain to a new agenda topic they have not previously spoken about. • In the event of a contentious topic with multiple speakers, the Chair will attempt to provide equal time for both sides.

1 2 SPECIAL COMMISSION BUSINESS MEETING AGENDA 3 August 1, 2017 4 12:00 PM 5 6 PRESENT: 7 Colleen McAleer, President 13 Jerry Ludke, Airport & Marina Mgr. 8 Connie Beauvais, Vice-President 14 Dan Gase, Real Estate & Bus. Mgr. 9 Steven Burke, Secretary 15 Holly Hairell, Admin. Mgr. 10 Karen Goschen, Exec. Dir. 16 Simon Barnhart, Port Counsel 11 John Nutter, Dir. of Fin. & Admin. 17 Laurel Black, Design Consultant 12 Chris Hartman, Dir. of Eng. 18 19 I. BROWN BAG LUNCH WITH COMMISSION – 12PM 20 21 Commissioner McAleer convened the brown bag lunch at 12:20pm adjourned it at 1:00pm. 22 23 II. CALL TO ORDER / PLEDGE OF ALLEGIANCE – 1PM (0:00 to 0:22) 24 25 Commissioner McAleer called the meeting to order at 1:00pm and Holly Hairell led the pledge 26 of allegiance. 27 28 III. APPROVAL OF CONSENT AGENDA (0:30 to 0:54) 29 30 A. Commission Meeting Minutes

31 1. July 17, 2017 Special Joint Commission Meeting minutes

32 2. July 17, 2017 Special Commission Meeting minutes 33 34 Commission Action: Commissioner Beauvais made a motion to approve the consent 35 agenda. Commissioner Burke seconded the motion. The vote was called for and it passed 36 unanimously. 37 IV. EARLY PUBLIC COMMENT SESSION (total session up to 20 minutes)

38 None offered. 39 V. PLANNING

40 No items 41 VI. PROPERTY 42 No items

43 VII. MARINAS 44 A. 3-Phase Shore Power E-F Float – Advertisement for Bids (1:08 to 13:13) 45 Chris Hartman, Director of Engineering, presented the 3-Phase Shore Power for E-F 46 Float project to the Commission and highlighted the budget, scope and a breakdown of 47 the estimate to install 3-Phase power in the Boat Haven. Mr. Hartman stated that there 48 is a 6% return on investment for this project. He asked for direction from the 49 Commission in moving forward with the project. Questions and discussion from the 50 Commission followed about the 2017 delayed projects, fees for tenants using the 3- 51 Phase power, fees at other marinas for 3-Phase power and the location of the 3-Phase 52 service 53 54 Commission Action: Commissioner Beauvais made a motion to move forward with 55 the 3-Phase Shore Power at the E-F floats. Commissioner Burke seconded the motion 56 for discussion. A brief discussion followed regarding the solicitation of local contractors 57 for the project. The vote was called for and it passed unanimously. 58 59 VIII. AIRPORTS

60 A. Lincoln Park trees – information only (13:19 to 16:09) 61 Executive Director, Karen Goschen recapped the Lincoln Park tree removal project and the 62 project’s overall costs with the Commission. Commissioner Beauvais stated that the Port has 63 paid $1,594.24 per tree to have them removed to rescind the FAA’s landing restriction. Port 64 staff stated that there will be further costs related to stump grinding in the near future. 65 66 IX. OTHER BUSINESS

67 A. Website Redesign (16:11 to 53:27) 68 Holly Hairell, Admin Manager, presented the Port’s current website, its structure and 69 challenges along with the evolving trends in websites. Ms. Hairell then presented the 70 redesigned website home page to the Commission and the corresponding project timeline. 71 She stated that the design structure needs to be approved by Friday, August 4, 2017 to keep 72 the project on schedule. 73 74 Laurel Black of Laurel Black Design presented the new Port website’s marketing approach so 75 that the website is utilized as a marketing tool and an informational website. Ms. Black then 76 highlighted how the redesigned website would be organized. Discussion followed amongst the 77 Commission and staff regarding search engine optimization, the website being mobile friendly 78 and a community outreach button on the home page. 79 80 Commission Consensus: The Commission directed Port staff to move forward with the 81 website redesign process.

82 B. WPPA Commissioner’s Seminar Report (53:29 to 1:13:17)

83 Commissioner McAleer reported that she attended the WPPA Commissioners Seminar in late 84 July and presented to the Commission two of the seminar’s PowerPoint presentations from 85 attorney Frank Chmelik and the Port of Walla Walla. She highlighted the current focuses and 86 issues of other ports, the powers of ports in general, build-to-suit guidelines and a success 87 story from the Port of Walla Walla.

88 C. Line of Business discussion (1:13:19 to 1:53:44) 89 John Nutter, Director of Finance and Administration, gave the Lines of Business presentation 90 to the Commission before the budget process later in the summer. Mr. Nutter highlighted rate 91 of return concepts, public vs. financial return matrix, financial data, the 2012 economic impact 92 data regarding jobs, a draft of the line of business return matrix and the next steps. Questions 93 and discussion occurred between the Commission and staff throughout the presentation.

94 X. PUBLIC COMMENTS SESSION (total session up to 20 minutes) 95 None offered.

96 XI. NEXT MEETINGS (1:53:50 to 1:59:16)

97 A. August 14, 2017 at 1:00pm – Special Commission Meeting

98 B. August 14, 2017 at 5:00pm – Special Joint Commission Meeting with City of 99 Forks Council at the City of Forks 100 101 A brief discussion ensued regarding the topics for the City of Forks meeting on August 14, 102 2017 at 5:00pm.

103 XII. UPCOMING EVENTS (1:59:17 to 2:01:48)

104 A. August 3-4, 2017 – AFRC Summer Board Meeting at Klamath Falls 105 106 Commissioner Beauvais noted that she would be out of town for the October 24, 2017 meeting 107 and requested the meeting be moved to October 23, 2017. Commissioner Burke and 108 Commissioner McAleer agreed to the date change. 109 110 Director Goschen noted that the August 29, 2017 meeting would be a long meeting. 111 112 XIII. EXECUTIVE SESSION The Board may recess into Executive Session for those 113 purposes authorized under Chapter 42.30 RCW, the Open Public Meetings Act. 114 (2:01:49 to 2:02:30)

115 Commissioner McAleer moved the meeting into executive session at 3:02pm to discuss one 116 item concerning the purchase of real estate and two items concerning potential litigation. She 117 estimated the time needed for executive session would be 50 minutes and stated that it would 118 begin at 3:10pm. No action was expected following executive session.

119 120 At 4:00pm, Commissioner McAleer extended the executive session 15 minutes. 121 At 4:15pm, Commissioner McAleer extended the executive session 15 minutes. 122 At 4:30pm, Commissioner McAleer extended the executive session 15 minutes. 123 124 125 126 XIV. ADJOURN 127 128 With no further business to discuss, Commissioner McAleer adjourned the meeting at 4:45pm.

4 PORT OF PORT ANGELES GENERAL FUND - LETTER OF TRANSMITTAL VOUCHER APPROVAL

l, the undersigned, do hereby certify under penalty of perjury that the materials have been furnished, the services rendered or the labor performed as described herein, that any advance payment is due and payable pursuant to a contract or is available as an option for full or partial fulfillment of a contractual obligation, and that the claim is a just, due and unpaid obligation against the Port of Port Angeles, and that I am authorized to authenticate and certify to said claim.

SUMMARY TRANSMITTAL July 15,2017 thru August 11, 2017

Accounts Payable Begin End For General Expenses and Gonstruction Gheck # Check # Accts Payable Checks (computer) 406062 406289 $ 881,442.44 VOIDED/ZERO PAYABLE CHECKS 406226 406226 $ (404.17) Voided Payable Checks - Not lssued/written orcr 406239406262,406287406289 Manual Checks 3711 3718 $ 759.99 VOIDED MANUAL CHECKS O O $ Wire Transfer - (Excise Tax) $ 7,771.08 Wire Transfer - (Leasehold Tax) $ 127,773.56 Total General Expenses and Construction $ 1,017,342.90 Payroll Employee Payroll - Draws Checks 0 0$ Employee Draw Checks PPD 0 0$ Employee Payroll Checks 201224 20'1237 $ 27,259.73 Employee Payroll Checks PPD (direct dep) 801459 801500 $ 117,271.77 VOIDED PAYROLL CHECKS (stub orerrun) 0 0$ Voided checks PPD (stub overrun) 801453, 801455, 801459, 801461, 801463, go14zs,8o14g4 Wire Transfer - (Payroll Taxes, Retirement, Deferred Comp, L&l) $ 108,972.57 Total Payroll $ 253,504.07 Total General Exp & Payroll $ 1,270,846.97 Date: August 11,2017

Port Representative Port Representative

Commissioner, Steven D. Burke

Commissioner, Connie Beauvais

Commissioner, Colleen McAleer

5 REPORT TO THE BOARD OF PORT COMMISSIONERS July 2017

SUBJECT: REPORTS REQUIRED UNDER THE PROVISIONS OF THE DELEGATION OF AUTHORITY

REPORT NO ATTACHED ACTION

Month to Month Leases, Renewals/Options, X Assignments and Subleases Executed

Lease Bond, Rental Insurance Deviations X

Work Contracts (over $50,000) Executed X

Change Orders Authorized X

Work by Port Crews or Day Labor (over X $50,000)

Claims Settled (under $7,500) X

Professional & Consulting Services Awarded and Architectural, Engineering & Technical X Services Awarded

Travel Approved within US and Canada (under $1,000)

Uncollectible Accounts Written Off X

Experts Engaged for Litigation X

Tariff Adjustments X

Quarterly Treasurer Investment Reports X (April, July, October, January)

LEASES EXECUTED (In Accordance with Master Policy) JULY 2017

TENANT NAME DOCUMENT LOCATION FORM ACREAGE/ TERM MONTHLY COMMENTS OF SQ FOOT RENT SURETY North Olympic Lease 20 parking spaces in Deposit of 9,375 sf M2M $608.33 Healthcare Network Port Parking on First $1,825.00 Street Legacy Contracting Lease Marine Terminal, Deposit of 335 sf M2M $335.00 Suite 2 $683.00

7 VACANT PROPERTY AVAILABLE As of 07/31/2017

Property Description Address SQFT ACRES

South Airport Address SQFT Hangar 17W at Airport Terminal 1402 William R Fairchild Airport Rd 3,500 Hangar 17E at Airport Terminal 1402 William R Fairchild Airport Rd 3,500 Airport Coffee Shop 1402 William R Fairchild Airport Rd 2,000 Airport Airline space 1402 William R Fairchild Airport Rd 1,600

South Airport Land ACRES 26 Acres Land SE Airport Terminal (zoned High Industrial) 26

Airport Pads (Land) ACRES Hangar Pad E 0.69 Hangar Pad F 0.69

North Airport / Industrial Park / CMC Address SQFT Office Building (+1,300 sf workshop) 2417 W. 19th St. 3,300 Office Building (+ 3,000 sf storage) 2032 S O Street 1,500 1.16 Acres (Around Again) 2604 W 18th Street 1.16

N Airport Industrial Park (Land) ACRES 27 Acres near CMC (zoned Light Industrial) 27 150 Acres at Cross Wind Runway (zoned Light Industrial) 150

Waterfront (Land) Address ACRES 18 Acres at Former PenPly Facility NNA Marine Drive 18

Marine Drive Address SQFT Former K-Ply Office Building 439 Marine Drive 5,000

Port Building Occupancy Rate SQFT % Vacant 20,400 6% Occupied 328,058 94% Total Square Feet Available 348,458 100%

8 Port of Port Angeles - Rental Property Occupancy based on Square Feet 100%

95%

90%

85% Occupancy % of

80%

75% Mar- May- Aug- Nov- Dec- Mar- May- Aug- Nov- Dec- Mar- May- Jan-15 Feb-15 Apr-15 Jun-15 Jul-15 Sep-15 Oct-15 Jan-16 Feb-16 Apr-16 Jun-16 Jul-16 Sep-16 Oct-16 Jan-17 Feb-17 Apr-17 Jun-17 17-Jul 15 15 15 15 15 16 16 16 16 16 17 17 Series1 87% 87% 88% 88% 88% 88% 87% 87% 87% 88% 89% 89% 87% 87% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 91% 91% 91% 94%

January-September 2016 Cancels: Boat Haven Marine Legacy Contracting March-May 2016 New: 4 Arrow Launch Jig & Lure (Replacement of Ron Shepard) February 2017 Cancels: Interfor Platypus, Suite 1 March 2017 Vacates: Jig & Lure In arrears since 1/1/17, vacated premises 3/13/17, litigation April 2017 Assign: McKinley Paper Co Bought Nippon Paper; closed 4/4/17 Assign: CFPC Alcan 202 N Cedar Street, Suite 3, M to M Replace: CFPC Alcan Debarker M to M until term lease negotiated. Replaced Alcan debarker lease; Alcan bought by CFPC on 3/1/17 New: Airborne ECS 5,000sf MTIB M2M until term lease negotiated. May 2017 NONE June 2017 Temporary: Orion 2,100 sf of land adjacent to T-6/sand capping pilot test July 2017 Temporary: Legacy Contracting MT Suite 2 for install of dolphin on T3 North Olympic July 2017 New: Medical Network 9,375 sf/20 spaces in First Street Port auxiliary parking lot July 2017 New: Airborne ECS Additional 10,000sf of MTIB for a total of 15,000 sf

9 Lease Inventory Occupancy Ratios 2014-2017 based on square feet 1

0.95

0.9

0.85

0.8 2014 0.75 2015 0.7 2016

Percentage Occupied Percentage 2017 0.65

0.6

0.55

0.5 January February March April May June July August September October November December Month

10 CHANGE ORDERS AUTHORIZED BY THE EXECUTIVE DIRECTOR (In Accordance with Master Policy) July 2017

COST OF TOTAL OF % OF

CHANGE ALL CHANGE PROJECT TOTAL PROJECT VENDOR REASON FOR COST PROJECT ORDER ORDERS CHANGE COST

FIA Apron Project Lakeside Industries De-Winterization $10,731.60 $20,319.58 $1,092,091.79 1% Costs

11 Page I of5 pages

CONTRACTCUANGE ORDERNO. 4 qr STJPPLEMNNTAL AGREEMENT NO,

AIRPORT Wtltlen R tr'alrcblld DATE 6B0IIAT7 Intcrnadonrl Airnort

II)CAflON Port Ansele& WA aIP PRoJECT NO. 3-53.{Xt47-035

CONTRACTOR Lakedde

You arc rcqioctcd lo pe,rform the followiqg dss$ib€d wort rpon rcceipt of an approved copy of this documcnt oras directcd by the enginecr

Iten Unta No. Dacripdon Unit Prlcc 0uudtv Amount I IbwlltrrbEglte IS tep00.00 t SlraTrr (8/7cy t$r.60

Thlr 731.60 Totrl

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-n Reconmended by: p{^'; il1n0t1 Drtc Approvcd by: 7-Aa- t-) - Ilatc Accrpted by: 'tL '7,7,o,t7 Ilrta Concurrcd by: Stete (rf l, Ilrtc Approvcd by: z Federrl

!o c@stuctior, regired whcn

12 Page2 of5 pages

AIP PROJECT NO. 3-53-0047-03s CHANGE ORDERNO. 4 (Supplemental Agreem"nt;-

AIRPORT William R Fairchild International LOCATION Port Angeles, WA Airport

JUSTIFICATION FOR CHANGE 1. Brief description of the proposed contract change(s) and location(s)

This is change order covers the effort and materials needed to de-winterize the site and resume construction following the winter shutdown (October 28,2016).

2. Reason(s) for the change(s) (Continue on reverse if necessary)

Due to poor site conditions discovered in phase 28 and the deteriorating weather outlook, it became impossible to make progress on the project's construction and meet the acceptance testing requirements. In October of 2016, the decision was made to winterize the site and shut down construction until more favorable conditions existed.

It is anticipated that construction will resume and be completed in July/August of 2017. Prior to completing construction of the apron, the winterizing measures put in place last fall need to be removed. These winterizing measures included: e A temporary shoulder adjacent to Taxiway A - crushed material was placed over the existing soft subgrade and graded at 5 percent away from Taxiway A with a l-ll2-inch drop at the Taxiway edge of pavement. This measure provided a CSPP phase that allowed for the use of Taxiway A during the construction shutdown period. o Temporary seeding that was placed in order to stabilize the site and provide erosion control during the winter shutdown. r Temporary L-853 blue edge reflectors installed in the temporary shoulder across from each existing taxiway edge light. The installation of temporary reflectors was to allow for the safe use of Taxiway A during the winter shutdown, and not meant to be part of the finished product.

The increase in cost, due to Change Order No. 4, is the amount considered necessary to remove the temporary shoulder, temporary seeding, and temporary taxiway edge reflectors.

Justification for Eligibility In order to justifli the eligibility of Change Order No. 4, several references regarding AIP change orders will be discussed below:

Project Manual, FAA General Provisions 00 07 10 o Section l0 Definition of Terms o Section 10-12 Change Order: "A written order to the Contractor covering changes in the plans, specifications, or proposal quantities and establishing the basis of payment and contract time adjustment, if any, for the work affected by such changes. The work, coveyd,butuir::::::";,*;#gi!:K'!';#::::i',:{#2"::ftK^eorthescopeor

the contract, the project scope remains the same.

13 o Section 10-22Extra Work: "An item of work not providedfor in the awarded contract as previously modified by change order or supplemental agreement, but which is found by the Engineer to be necessary to complete the work within the intended scope of the contract as previously modified." . Justification: The items of Change Order No. 4 were not provided for in the awarded contract as the need to winterize the site was not anticipated. Change Order No. 4 to de-winterize the site is necessary to complete the work within the intended scope ofthe contract.

a Section 80-06 Temporary Suspension of the Work o Second paragraph,last sentence: "No provision of this article shall be construed as entitling the Contractor to compensationfor delays due to inclement weather, for suspensions made at the request of the Owner, orfor any other delay providedfor in the contract, plans, or specifcations." . Justification: The costs in this change order are not for Contractor compensation for delays, the costs are for the work required to de-winterize the project site.

3. Justifications for unit prices or total cost.

This change order includes removing the temporary shoulder, temporary seeding, and temporary taxiway edge reflectors following the winter shutdown of the site. This change order is justified because a winter shutdown period was not anticipated at the time of bidding, as there was a reasonable assumption that the project could be completed in fall 2016.The conditions encountered in Phase 28, which led to the winter shutdown, were much more severe than could reasonably have been expected based on the conditions encountered in adjacent Phase 24.

Remove Temporary Shoulder This item is for excavation and removal of the temporary shoulder that was installed adjacent to Taxiway A. The volume of material used to construct the temporary shoulder, and therefore requiring removal, was computed from f,reld dimensions and then compared to the volume of material based on truck tickets. Both methods yielded approximately 151 cubic yards.

Based on recent low bids for unclassified excavation, as illustrated in the table below, a cost of $ 1 3/CY is a reasonable estimate for the removal of the temporary shoulder. At a quantity of 1 5 I CY, that is a total cost of $1,963.

BID PRICE OF PROJECT YEAR QUANTITY LOW BIDDER $13/CY W.R. Fairchild Intl Airport Apron 2016 5600 cY Phase 3 and 4 $12lCY Sanderson Field Aircraft Holding 2016 3610 CY Apron $17lCY Olympia North Taxiway F 2015 3000 cY Rehabilitation Averase Bid Price: $14lCY

Remove TemporarJt Se e ding This item covers the work required to remove the 0.9 acres of temporary seeding that was placed in order to stabilize the site and provide erosion control during the winter shutdown.

Based on recent low bids for stripping, as illustrated in the table below, a cost of $9,000/acre is a reasonable estimate for the removal of the temporary seeding. At a quantity of 0.9 acres, that is a total

14 cost of$8,100

BID PzuCE OF PROJECT YEAR QUANTITY LOW BIDDER $20,000/acre OlympiaNorth Taxiway F 2015 1.2 acres Rehabilitation $ I I ,000/acre Renton Taxiway B System 2013 0.93 acres Rehabilitation - South Portion $1 i,000/acre Olympia Airport Taxiway C and 20r3 2.8 acres North Taxiway W Rehabilitation $3,75O/acre Sunnyside AWOS Installation 2013 L02 acres Proiect Average Bid Price: $17,437.501acre

Remove Temporary Edge Rqflectors This item includes removing the L-853 blue edge reflectors and sleeves that were installed across from the existing taxiway edge lights - a total of seven temporary reflectors.

Based on recent bids for removal of edge reflectors on the Aircraft Holding Apron Project at Sanderson Field, as illustrated in the table below, a cost of approximately $2\leach is a reasonable estimate for the removal of the temporary reflectors. At a quantity of 7 reflectors, that is a total cost of $140.

BID PRICES PROJECT YEAR OUANTITY $20 each $75 each Sanderson Field Aircraft Holding $100 each 2016 5 Apron $177 each $220 each Average Bid Price: $l 18.40 each

Total Cost The total cost of Change Order 4 based on the three items outlined above is shown in the following table: ITEM LINIT COST OUANTITY TOTAL COST Remove Temporary $13/CY 15I CY $ 1,963 Shoulder Remove Temporary $9,000/acre 0.9 acre $8,100 Seeding Remove Temporary $20leach 7 $140 Edge Reflectors TOTAL $10,203

This total cost exceeds the price provided by the contractor. Based on the justification given above, the cost of $9,900 for Change Order 4 is reasonable and justified.

4. The sponsor's share of this cost is available from: Port funds. 5. If this is a supplemental agreement involving more than $2,000, is the cost estimate based on the latest wage rate decision? Yes I No I trtot Applicable f . 6. Has consent of surety been obtained? Yes I NotNecessary f .

15 7. Will this change affect the insurance coverage? Yes [] No X 8. If yes, will the policies be extended? Yes I wo I. 9. Has this Change Order) (Supplemental Agreement) been discussed with FAA officials? Yes ffi No When October 2016 With Whom Mary Varsas

Comment Don Barclay and Mary Vargas discussed this change order in October 2016 in conjunction with discussions regarding Change Order 3 and the winter shutdown of construction.

Submit 4 copies to the FAA

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www,reidmiddleton18 com PROFESSIONAL & PERSONAL SERVICES AWARDED BY THE EXECUTIVE DIRECTOR (In Accordance with the Delegation of Authority) July 2017

OTHER CONTRACT

CONSULTANT PROJECT EST. COST PROVISIONS

Rail Spur Survey July 12, 2017 through Dec Cardno $1,831 at Terminal 7 31, 2017

Lincoln Park Zenovic & July 10, 2017 Through Dec Stormwater $1,000 Associates 31, 2017 Analysis – Ph. 1

Multi-Tenant Industrial Building Carletti Architects, July 12, 2017 Through Dec Facility $50,000 P.S. 31, 2018 Improvements Ph. 2

On-Call Northwestern July 25, 2017 through Aug Surveying $50,000 Territories, Inc. 15, 2018 Services

On-Call Wengler Surveying July 25, 2017 through Aug Surveying $50,000 & Mapping 15, 2018 Services

On-Call July 27, 2017 through Aug TerraSond Limited Surveying $50,000 15, 2018 Services

19 CONSULTANT SERVICES AGREEMENT

PROJECT: Rail Spur Survey at Terminal 7 CONSULTANT: Cardno

THIS AGREEMENT is made and entered into by and between the Port of Port Angeles (hereinafter referred to as the "Port") and Cardno. (hereinafter referred to as the "Consultant") for the furnishing of consultant services for Rail Spur Survey at Terminal 7.

The Port and Consultant mutually agree as follows:

SCOPE AND SCHEDULE OF WORK

Scope: For detailed description see Attachment A Task 1 – Background Research Task 2 – Survey Task 3 – Site Inventory Form Task 4 –Task Management & Communications

List of Deliverables: State of Washington Archaeological Site Inventory Form submitted to Washington State Department of Archaeology and Historic Preservation (DAHP) Schedule: This work shall be commenced within 2 day of the notice to proceed. Completion will depend on DAHP review time.

COMPENSATION This will be accomplished on a total fee and expense basis and will not exceed $1,831, without prior written approval from the Port.

LENGTH OF AGREEMENT The length of this agreement is from July 12, 2017 through December 31, 2017.

RATE AND FEE SCHEDULE AND OUT-OF-POCKET EXPENSES See Attachment B REPRESENTATIVES The Port’s Project Manager and Consultant’s Representative for this Agreement are as specified. Alternate representatives may be appointed by either party with written notice to the other party.

Port’s Project Manager: Jesse Waknitz Consultant’s Representative: Jennifer Ferris, MA, RPA

TERMS AND CONDITIONS In consideration of the mutual covenants, obligations, and compensation to be paid by the Port to Consultant, it is agreed that: 1. Relationship of the Parties Consultant, its subconsultants and employees, is an independent Contractor. Nothing contained herein shall be deemed to create a relationship of employer and employee or of principal and agent. 2. Conflicts of Interest Consultant warrants that it has no direct or indirect economic interest which conflicts in any manner with its performance of the services required under this Agreement. Consultant warrants that it has not retained any person to solicit this Agreement and has not agreed to pay such person any compensation or other consideration contingent upon the execution of this Agreement.

1 20 3. Compliance with Laws Consultant agrees to comply with all local, state, tribal and federal laws and regulations applicable to the services, including registration and taxes, permitting regulations and those regarding employee safety, the work place environment, and employment eligibility verifications as required by the Immigration and Naturalization Service. Consultant shall obtain all licenses and permits required to complete the scope of work as defined. The Port shall furnish Consultant with the information required by the Hazard Communication standard for materials preexisting on the project site. Consultant will ensure that this information is made available to the Consultant’s personnel and subconsultants, and incorporated into the contract documents as appropriate. 4. Suspension and Debarment By signing this agreement, the Consultant verifies that it has not been suspended or debarred from working on federally funded projects 5. Records and other Tangibles Until the expiration of six years after the term of this Agreement, Consultant agrees to maintain accurate records of all work done in providing services specified by the Agreement and following Consultant’s receipt of final payment therefore to deliver such records to the Port upon termination of the Agreement or otherwise as requested by the Port. 6. Ownership of Work The services to be performed by Consultant shall be deemed instruments of service for purposes of the copyright laws of the United States. The Port has ownership rights to the work products prepared by the Consultant in performing these services. Consultant shall not be responsible for changes made in the work products by anyone other than the Consultant. Consultant shall have free right to retain, copy and use any tangible materials or information produced but only for its own internal purposes. Use of documents or other materials prepared under this Agreement for promotional purposes shall require the Port’s prior consent. 7. Disclosure All information developed by the Consultant and all information made available to the Consultant by the Port, and all analyses or opinions reached by the Consultant shall be confidential and shall not be disclosed by the Consultant without the written consent of the Port except to the extent required by law or legal process. 8. Deliverables Unless otherwise specified in the Scope of Work, Consultant shall provide draft deliverables to the Port for review prior to preparation of final deliverables. Delivery of materials produced shall consist both of the tangible materials and one copy of any computer file used in the creation of the tangible product in a PDF format or other format specified by the Port. 9. Compensation As full compensation for the performance of its obligations of this Agreement and the services to be provided, the Port shall pay Consultant as specified in the Agreement. Compensation for vehicle usage will be paid at the current Internal Revenue Service allowable mileage reimbursement rate based on road mileage distance between Consultant’s office and project location. Consultant’s expenses will be reimbursed at cost. Hourly rates shall include all of Consultant’s routine administration and overhead expenses, including all equipment, software, tools and supplies reasonably required to perform the scope of services. The Port will not separately reimburse Consultant for routine overhead expenses or administration including but not limited to: A. Computer hardware or software usage B. Digital camera or recording equipment C. Communications - including phone, internet, fax, postage and courier D. Routine reproduction except for documents produced by outside vendor E. Small tools and expendables. F. Federal, state or local taxes G. Safety training and equipment H. Time devoted to Agreement negotiation, invoicing or dispute resolution.

2 21 10. Payment Schedule Consultant shall submit detailed numbered invoices showing description of work items being invoiced, work order number, title of project, total authorized, total current invoice, balance of authorization, individual’s names and titles, hours, hourly rate and all authorized expenses itemized, with backup, by the 20th of the month to be paid by the 15th of the succeeding month, unless other terms are agreed to by the parties. 11. Costs and Disbursements Consultant shall pay all costs and disbursements required for the performance of its services under this Agreement. 12.Indemnity For all claims arising from the performance of the Consultant’s professional services Consultant and its subconsultants agree to indemnify and hold harmless the Port of Port Angeles, its appointed and elective officers and its employees from and against any and all suits, claims, actions, losses, costs, penalties and damages of whatever kind and nature, including attorney fees and costs, by reason of any and all claims and demands on it, its officers and employees, to the extent arising from the negligent acts, errors or omissions by the Consultant in the performance of the Consultant’s professional services. 12.1 Limitation of Liability Notwithstanding any other clause in this Agreement, the total aggregate liability of the Consultant to the Port of Port Angeles for any claims, losses, costs or damages arising out of or in connection with the Consultant’s performance of the Agreement, whether under the law of contract, tort (including negligence), statute or otherwise, shall be limited to the extent permissible by law to five times the total compensation received by the Consultant or the limits of the relevant insurance policies pursuant this Agreement, whichever is greater. The limits of liability in this clause do not apply to any liability of the Consultant arising from claims made by any third party for personal injury, death or damage to any property.”

13. Insurance Prior to commencement of services under this Agreement and if required below, Consultant shall procure and maintain one or more lines of insurance coverage to be kept in force for the life of this Agreement. If required, insurance shall be procured from insurance carriers with a current A.M. Best’s rating of no less than ”A VI”. Consultant shall submit to the Port a Certificate of Insurance which shows that it has obtained the required coverage(s). Coverage shall not lapse or be terminated without written notification to the Port, delivered electronically or by mail, not less than thirty (30) days prior to any such lapse or termination. Consultant agrees to notify the Port of any material change of coverage or reduction in limits. Except for professional liability, the Port shall be named as an additional insured on all policies on ISO Form CG 20 10 Form B.

This Agreement Does Does not require commercial general liability insurance. If neither box is checked, commercial general liability insurance is required. If required, the following will apply: Consultant shall procure and maintain during the life of this Agreement commercial general liability coverage on occurrence form CG0001 or equivalent with limits of $1,000,000 per occurrence and $2,000,000 aggregate;

This Agreement Does Does not require automobile liability insurance. If neither box is checked, automobile liability insurance will be required. Consultant shall procure and maintain during the life of this Agreement automobile liability insurance covering owned, non-owned and hired vehicles of $1,000,000 combined single limit per accident. Sole proprietors may provide coverage on a Personal Auto Policy in lieu of a Commercial Auto coverage form.

3 22 14. Force Majure Neither the Port nor the Consultant shall hold the other party responsible for damages or delay in performance caused by acts of god, strikes, lockouts, accidents, or other events beyond the control of the other or the other’s employees and agents. 15. Standard of Care Consultant shall perform its work to conform to generally accepted professional standards. Consultant shall be responsible for the professional quality, technical adequacy and accuracy, timely completion and coordination of all deliverables prepared under this Agreement Consultant shall, without additional compensation, correct or revise any errors or omissions in such deliverables. The Port’s approval of deliverables shall not relieve Consultant of responsibility for the adequacy or accuracy thereof. The Consultant shall remain liable for damages and costs incurred by the Port to the extent arising from the Consultant’s errors, omissions or negligent performance of services furnished under this Agreement. 16. Competitive Specification This Agreement Does Does not require development of plans or specifications. If required, the following paragraph shall apply:

Consultant shall provide for the maximum use of materials, equipment, construction methods and products that are readily available through competitive procurement, or through standard or proven production techniques. Consultant shall not produce a design or specification which would be restrictive or written in a manner as to contain proprietary requirements other than those based on performance, unless such requirements are necessary to demonstrate a specific outcome or to provide for necessary interchangeability of parts and equipment. Consultant shall justify in writing the use of any sole source. Where brand names are identified, they shall be followed by the salient product performance characteristics and the words “or approved equal” so that comparable quality or utility may be determined. 17. Time Time is of the essence in the performance by the Consultant of the services required by this Agreement. The Consultant shall complete its services within the milestones set forth in the project schedule. The Consultant shall also address issues which may result in completion beyond the established schedule or budget. 18. Assignability Consultant shall not assign any interest in this Agreement and shall not transfer any interest in the Agreement to any party without prior written consent of the Port. 19. Term of this Agreement The effective dates of this Agreement are as specified. This Agreement may be terminated by the Port for cause when the Port deems continuation to be detrimental to its interests or for failure of the consultant to perform the services specified in the Agreement. The Port may terminate this Agreement at any time for government convenience in which case it shall provide notice to the Consultant and reimburse the Consultant for its costs and fees incurred prior to the notice of termination. The provisions and warranties contained in this Agreement that by their sense and context are intended to survive the completion of performance or termination of this Agreement shall so survive. All indemnities provided in this Agreement shall survive the expiration or any earlier termination of this Agreement. 20. Disputes If a dispute arises relating to this Agreement and cannot be settled through direct discussions, the parties agree to endeavor to settle the dispute through a mediation firm acceptable to both parties, the cost of which shall be divided equally. The Port reserves the right to join any dispute under this Agreement with any other claim in litigation or other dispute resolution forum, and the Consultant agrees to such joinder, so that all disputes related to the project may be consolidated and resolved in one forum. Venue for any litigation shall be the Clallam County Superior Court of the state of Washington and the prevailing party shall be entitled to recover its costs and reasonable attorney fees. 21. Extent of Agreement This Agreement represents the entire and integrated understanding between the Port and Consultant and may be amended only by written instrument signed by both the Port and Consultant.

4 23 24 25 AttachmentsA&B–ScopeofWork&ScheduleofFees Agreement:Rail Spur Survey at Terminal 7

Page1of3 26 AttachmentsA&B–ScopeofWork&ScheduleofFees Agreement:Rail Spur Survey at Terminal 7

Page2of3 27 AttachmentsA&B–ScopeofWork&ScheduleofFees Agreement:Rail Spur Survey at Terminal 7

Page3of3 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53

CONSULTANT SERVICES AGREEMENT

PROJECT: On Call Surveying Services CONSULTANT: Northwestern Territories, Inc. (NTI)

THIS AGREEMENT is made and entered into by and between the Port of Port Angeles (hereinafter referred to as the "Port") and Northwestern Territories, Inc. (hereinafter referred to as the "Consultant") for the furnishing of consultant services for On Call Surveying Services.

The Port and Consultant mutually agree as follows:

SCOPE AND SCHEDULE OF WORK The work will be authorized as individual Task Orders to the contract in accordance with the Supplemental On-Call Consultant Terms and Conditions (Attachment A). Separate Task Orders defining scope and schedule will be issued by the Port for each assignment.

Surveying services to be performed under this agreement will consist of topographic surveys, bathymetry surveys, production of boundary line surveys and boundary line adjustment drawings, and writing of legal descriptions to support leasing operations or interagency actions. Additional services may be required depending on the needs of the Port.

COMPENSATION This will be accomplished on a lump sum or time and material basis as detailed in the applicable Task Order and will not exceed $50,000, without prior written approval from the Port. This total is sum of all Task Orders issued under this Contract.

LENGTH OF AGREEMENT The length of this agreement is from July 25, 2017 through August 15, 2018.

RATE AND FEE SCHEDULE AND OUT-OF-POCKET EXPENSES The work will be authorized as individual Task Orders to the contract in accordance with the Supplemental On-Call Consultant Terms and Conditions (Attachment A). Separate Task Orders defining rate and fee schedule will be issued by the Port for each assignment.

REPRESENTATIVES The Port’s Project Manager and Consultant’s Representative for this Agreement are as specified. Alternate representatives may be appointed by either party with written notice to the other party.

Port’s Project Manager: Chris Hartman or Chris Rasmussen Consultant’s Representative: Scott Harksell, PLS

Consultant Services Agreement Page 1 of 5 54

3. Compliance with Laws Consultant agrees to comply with all local, state, tribal and federal laws and regulations applicable to the services, including registration and taxes, permitting regulations and those regarding employee safety, the work place environment, and employment eligibility verifications as required by the Immigration and Naturalization Service. Consultant shall obtain all licenses and permits required to complete the scope of work as defined. The Port shall furnish Consultant with the information required by the Hazard Communication standard for materials preexisting on the project site. Consultant will ensure that this information is made available to the Consultant’s personnel and subconsultants, and incorporated into the contract documents as appropriate. 4. Suspension and Debarment By signing this agreement, the Consultant verifies that it has not been suspended or debarred from working on federally funded projects 5. Records and other Tangibles Until the expiration of six years after the term of this Agreement, Consultant agrees to maintain accurate records of all work done in providing services specified by the Agreement and following Consultant’s receipt of final payment therefore to deliver such records to the Port upon termination of the Agreement or otherwise as requested by the Port. 6. Ownership of Work The services to be performed by Consultant shall be deemed instruments of service for purposes of the copyright laws of the United States. The Port has ownership rights to the work products prepared by the Consultant in performing these services. Consultant shall not be responsible for changes made in the work products by anyone other than the Consultant. Consultant shall have free right to retain copy and use any tangible materials or information produced but only for its own internal purposes. Use of documents or other materials prepared under this Agreement for promotional purposes shall require the Port’s prior consent. 7. Disclosure All information developed by the Consultant and all information made available to the Consultant by the Port, and all analyses or opinions reached by the Consultant shall be confidential and shall not be disclosed by the Consultant without the written consent of the Port except to the extent required by law or legal process. 8. Deliverables Unless otherwise specified in the Scope of Work, Consultant shall provide draft deliverables to the Port for review prior to preparation of final deliverables. Delivery of materials produced shall consist both of the tangible materials and one copy of any computer file used in the creation of the tangible product in a PDF format or other format specified by the Port. 9. Compensation As full compensation for the performance of its obligations of this Agreement and the services to be provided, the Port shall pay Consultant as specified in the Agreement. Compensation for vehicle usage will be paid at the current Internal Revenue Service allowable mileage reimbursement rate based on road mileage distance between Consultant’s office and project location. Consultant’s expenses will be reimbursed at cost. Hourly rates shall include all of Consultant’s routine administration and overhead expenses, including all equipment, software, tools and supplies reasonably required to perform the scope of services. The Port will not separately reimburse Consultant for routine overhead expenses or administration including but not limited to: A. Computer hardware or software usage B. Digital camera or recording equipment C. Communications - including phone, internet, fax, postage and courier D. Routine reproduction except for documents produced by outside vendor E. Small tools and expendables. F. Federal, state or local taxes G. Safety training and equipment H. Time devoted to Agreement negotiation, invoicing or dispute resolution.

Consultant Services Agreement Page 2 of 5 55

10. Payment Schedule Consultant shall submit detailed numbered invoices showing description of work items being invoiced, work order number, title of project, total authorized, total current invoice, balance of authorization, individual’s names and titles, hours, hourly rate and all authorized expenses itemized, with backup, by the 10th of the month to be paid by the end of the current month, unless other terms are agreed to by the parties. 11. Costs and Disbursements Consultant shall pay all costs and disbursements required for the performance of its services under this Agreement. 12.Indemnity For all claims arising from the performance of the Consultant’s professional services Consultant and its subconsultants agree to indemnify and hold harmless the Port of Port Angeles, its appointed and elective officers and its employees from and against any and all suits, claims, actions, losses, costs, penalties and damages of whatever kind and nature, including attorney fees and costs, by reason of any and all claims and demands on it, its officers and employees, to the extent arising from the negligent acts, errors or omissions by the Consultant in the performance of the Consultant’s professional services. 13. Insurance Prior to commencement of services under this Agreement and if required below, Consultant shall procure and maintain one or more lines of insurance coverage to be kept in force for the life of this Agreement. If required, insurance shall be procured from insurance carriers with a current A.M. Best’s rating of no less than ”A VI”. Consultant shall submit to the Port a Certificate of Insurance which shows that it has obtained the required coverage(s). Coverage shall not lapse or be terminated without written notification to the Port, delivered electronically or by mail, not less than thirty (30) days prior to any such lapse or termination. Consultant agrees to notify the Port of any material change of coverage or reduction in limits. Except for professional liability, the Port shall be named as an additional insured on all policies on ISO Form CG 20 10 Form B.

This Agreement Does Does not require Professional Liability insurance coverage. If neither box is checked, the Agreement does require this coverage. Consultant shall procure and maintain during the life of this Agreement professional liability insurance of $1,000,000 per claim and in the aggregate. Insurance shall have a retroactive date before the date of commencement of services and shall remain in effect for the term of this Agreement plus three years. 14. Force Majure Neither the Port nor the Consultant shall hold the other party responsible for damages or delay in performance caused by acts of god, strikes, lockouts, accidents, or other events beyond the control of the other or the other’s employees and agents. 15. Standard of Care Consultant shall perform its work to conform to generally accepted professional standards. Consultant shall be responsible for the professional quality, technical adequacy and accuracy, timely completion and coordination of all deliverables prepared under this Agreement Consultant shall, without additional

Consultant Services Agreement Page 3 of 5 56

compensation, correct or revise any errors or omissions in such deliverables. The Port’s approval of deliverables shall not relieve Consultant of responsibility for the adequacy or accuracy thereof. The Consultant shall remain liable for damages and costs incurred by the Port to the extent arising from the Consultant’s errors, omissions or negligent performance of services furnished under this Agreement. 16. Competitive Specification This Agreement Does Does not require development of plans or specifications. If required, the following paragraph shall apply:

Consultant Services Agreement Page 4 of 5 57 58 Attachment-A

PORT OF PORT ANGELES SUPPLEMENTAL ON-CALL CONSULTANT TERMS AND CONDITIONS

1. Definitions Supplementary Conditions

Task Order - The document that memorializes agreement between the Consultant and the Port, in accordance with the terms of the On-Call Contract. Task Orders are executed for defined work under the On-Call Contract.

Contract Owner - Port staff member responsible for executing all Task Orders. All Task Orders will be executed by the Executive Director or delegated representative.

Project Manager - Port staff member responsible for managing a specific Task Order.

Consultant Representative - The Consultant staff member(s) delegated the authority to provide signature approval for Task Orders under the On-Call Contract.

2. Task Order Proposals The Project Manager will request consultant to provide a fee proposal and a scope of work as requested by the Port.

The Port will not pay for time or materials associated with development of fee proposals, unless such costs are approved by the Project Manager and Contract Owner in advance.

Task Order proposals shall be signed and submitted by the Consultant Representative to the Port’s Project Manager in writing. Proposals shall include one of the following:

a. Lump Sum Proposal

i. Description of Task Order scope and deliverables, including all inclusions and exclusions to the scope.

ii. Indicate portion of total dollar amount tied to certain phases and/or specific deliverables, if requested by the Project Manager.

iii. Total dollar amount

b. Time and Material Proposal

i. Description of Task Order scope and deliverables.

ii. Consultant’s Personnel Titles and Rates as negotiated.

iii. Hours per person per task.

iv. Sub-tier consultant scope and deliverables (when applicable).

v. Anticipated reimbursable costs.

vi. Total proposal with Not to Exceed dollar amount.

Supplemental On-Call Consultant Terms and Conditions Page 1 of 2 59 Attachment-A

3. Task Order Execution Executed Task Orders will be issued by the Contract Owner to the Consultant.

4. Task Order Revision Revisions include when the Consultant becomes aware of the potential to exceed the executed amount or when changes are requested by the Project Manager.

Consultant shall provide a revised proposal detailing all revisions per 2A and B above. Consultant shall not proceed with changed work until a revised Task Order is executed by the Contract Owner.

5. Payment Schedule Each Task Order shall be invoiced separately. Consultant shall submit detailed invoices showing the following:

a. Invoice Number, Contract Title, Task Order Number and Title.

b. Summary page with a brief description of work completed during the invoice period, deliverables provided during the invoice period, and forthcoming milestones / deliverables.

c. Current Amount Due:

i. For Lump Sum Task Orders: Percentage of work complete, percentage of completed work billed.

ii. For Time and Materials Task Orders: titles, hours, hourly rates, and all expenses itemized, with backup, in accordance with the contract.

d. Total amount of the Task Order, and balance of Task Order amount.

e. Indicate “Final Invoice” when invoice is the final billing for that Task Order.

6. Task Order Closure When work has been completed and final invoice processed by the Port, the Contract Owner will issue a Task Order Completion Notification to the Consultant Representative.

7. Task Order Termination The Port may terminate the Task Order at its convenience with or without cause. In such case, the Consultant shall be paid for all work performed and reasonable expenses properly incurred in connection with the termination.

Supplemental On-Call Consultant Terms and Conditions Page 2 of 2 60

CONSULTANT SERVICES AGREEMENT

PROJECT: On Call Surveying Services CONSULTANT: Wengler Surveying & Mapping

THIS AGREEMENT is made and entered into by and between the Port of Port Angeles (hereinafter referred to as the "Port") and Wengler Surveying & Mapping (hereinafter referred to as the "Consultant") for the furnishing of consultant services for On Call Surveying Services.

The Port and Consultant mutually agree as follows:

LENGTH OF AGREEMENT The length of this agreement is from July 25, 2017 through August 15, 2018.

Port’s Project Manager: Chris Hartman PE. or Chris Rasmussen Consultant’s Representative: James Wengler, PLS, CFedS

Consultant Services Agreement Page 1 of 5 61

Consultant Services Agreement Page 2 of 5 62

Consultant Services Agreement Page 3 of 5 63

Consultant Services Agreement Page 4 of 5 64 65 Attachment-A

PORT OF PORT ANGELES SUPPLEMENTAL ON-CALL CONSULTANT TERMS AND CONDITIONS

1. Definitions Supplementary Conditions

Contract Owner - Port staff member responsible for executing all Task Orders. All Task Orders will be executed by the Executive Director or delegated representative.

Project Manager - Port staff member responsible for managing a specific Task Order.

Consultant Representative - The Consultant staff member(s) delegated the authority to provide signature approval for Task Orders under the On-Call Contract.

2. Task Order Proposals The Project Manager will request consultant to provide a fee proposal and a scope of work as requested by the Port.

The Port will not pay for time or materials associated with development of fee proposals, unless such costs are approved by the Project Manager and Contract Owner in advance.

Task Order proposals shall be signed and submitted by the Consultant Representative to the Port’s Project Manager in writing. Proposals shall include one of the following:

a. Lump Sum Proposal

i. Description of Task Order scope and deliverables, including all inclusions and exclusions to the scope.

ii. Indicate portion of total dollar amount tied to certain phases and/or specific deliverables, if requested by the Project Manager.

iii. Total dollar amount

b. Time and Material Proposal

i. Description of Task Order scope and deliverables.

ii. Consultant’s Personnel Titles and Rates as negotiated.

iii. Hours per person per task.

iv. Sub-tier consultant scope and deliverables (when applicable).

v. Anticipated reimbursable costs.

vi. Total proposal with Not to Exceed dollar amount.

Supplemental On-Call Consultant Terms and Conditions Page 1 of 2 66 Attachment-A

3. Task Order Execution Executed Task Orders will be issued by the Contract Owner to the Consultant.

4. Task Order Revision Revisions include when the Consultant becomes aware of the potential to exceed the executed amount or when changes are requested by the Project Manager.

Consultant shall provide a revised proposal detailing all revisions per 2A and B above. Consultant shall not proceed with changed work until a revised Task Order is executed by the Contract Owner.

5. Payment Schedule Each Task Order shall be invoiced separately. Consultant shall submit detailed invoices showing the following:

a. Invoice Number, Contract Title, Task Order Number and Title.

b. Summary page with a brief description of work completed during the invoice period, deliverables provided during the invoice period, and forthcoming milestones / deliverables.

c. Current Amount Due:

i. For Lump Sum Task Orders: Percentage of work complete, percentage of completed work billed.

ii. For Time and Materials Task Orders: titles, hours, hourly rates, and all expenses itemized, with backup, in accordance with the contract.

d. Total amount of the Task Order, and balance of Task Order amount.

e. Indicate “Final Invoice” when invoice is the final billing for that Task Order.

6. Task Order Closure When work has been completed and final invoice processed by the Port, the Contract Owner will issue a Task Order Completion Notification to the Consultant Representative.

Supplemental On-Call Consultant Terms and Conditions Page 2 of 2 67

CONSULTANT SERVICES AGREEMENT

PROJECT: On Call Surveying Services CONSULTANT: TerraSond Limited

THIS AGREEMENT is made and entered into by and between the Port of Port Angeles (hereinafter referred to as the "Port") and TerraSond Limited (hereinafter referred to as the "Consultant") for the furnishing of consultant services for On Call Surveying Services.

The Port and Consultant mutually agree as follows:

LENGTH OF AGREEMENT The length of this agreement is from July 27, 2017 through August 15, 2018.

Port’s Project Manager: Chris Hartman PE. or Chris Rasmussen Consultant’s Representative: Kathleen Mildon, PLS, C.H

Consultant Services Agreement Page 1 of 5 68

Consultant Services Agreement Page 2 of 5 69

Consultant Services Agreement Page 3 of 5 70

Consultant Services Agreement Page 4 of 5 71 72 Attachment-A

PORT OF PORT ANGELES SUPPLEMENTAL ON-CALL CONSULTANT TERMS AND CONDITIONS

1. Definitions Supplementary Conditions

Contract Owner - Port staff member responsible for executing all Task Orders. All Task Orders will be executed by the Executive Director or delegated representative.

Project Manager - Port staff member responsible for managing a specific Task Order.

Consultant Representative - The Consultant staff member(s) delegated the authority to provide signature approval for Task Orders under the On-Call Contract.

2. Task Order Proposals The Project Manager will request consultant to provide a fee proposal and a scope of work as requested by the Port.

The Port will not pay for time or materials associated with development of fee proposals, unless such costs are approved by the Project Manager and Contract Owner in advance.

Task Order proposals shall be signed and submitted by the Consultant Representative to the Port’s Project Manager in writing. Proposals shall include one of the following:

a. Lump Sum Proposal

i. Description of Task Order scope and deliverables, including all inclusions and exclusions to the scope.

ii. Indicate portion of total dollar amount tied to certain phases and/or specific deliverables, if requested by the Project Manager.

iii. Total dollar amount

b. Time and Material Proposal

i. Description of Task Order scope and deliverables.

ii. Consultant’s Personnel Titles and Rates as negotiated.

iii. Hours per person per task.

iv. Sub-tier consultant scope and deliverables (when applicable).

v. Anticipated reimbursable costs.

vi. Total proposal with Not to Exceed dollar amount.

Supplemental On-Call Consultant Terms and Conditions Page 1 of 2 73 Attachment-A

3. Task Order Execution Executed Task Orders will be issued by the Contract Owner to the Consultant.

4. Task Order Revision Revisions include when the Consultant becomes aware of the potential to exceed the executed amount or when changes are requested by the Project Manager.

Consultant shall provide a revised proposal detailing all revisions per 2A and B above. Consultant shall not proceed with changed work until a revised Task Order is executed by the Contract Owner.

5. Payment Schedule Each Task Order shall be invoiced separately. Consultant shall submit detailed invoices showing the following:

a. Invoice Number, Contract Title, Task Order Number and Title.

b. Summary page with a brief description of work completed during the invoice period, deliverables provided during the invoice period, and forthcoming milestones / deliverables.

c. Current Amount Due:

i. For Lump Sum Task Orders: Percentage of work complete, percentage of completed work billed.

ii. For Time and Materials Task Orders: titles, hours, hourly rates, and all expenses itemized, with backup, in accordance with the contract.

d. Total amount of the Task Order, and balance of Task Order amount.

e. Indicate “Final Invoice” when invoice is the final billing for that Task Order.

6. Task Order Closure When work has been completed and final invoice processed by the Port, the Contract Owner will issue a Task Order Completion Notification to the Consultant Representative.

Supplemental On-Call Consultant Terms and Conditions Page 2 of 2 74 TRAVEL APPROVED BY THE EXECUTIVE DIRECTOR (In Accordance with Master Policy) July 2017

STAFF PERSON LOCATION OF MTG. DATE(S) PURPOSE

Chris Hartman Port July 27 Tour of Pacific Marine Townsend/Anacortes/ Services and La Conner La Conner Maritime Service Mike Nimmo Port July 27 Tour of Pacific Marine Townsend/Anacortes/ Services and La Conner La Conner Maritime Service

Dan Gase Boeing Field w/KG July 5 Jet center/FBO review Karen Goschen and Steve Burke CRTC related meeting

Dan Gase Olympia Airport w/KG July 6 FBO review/study Karen Goschen and Nathan West Ecology Meeting

Karen Goschen Long Beach July 13-14 WPPA Executive Director Seminar

75 Report to the Board of Port Commissioners Operations Report for July 2017

Port Angeles Boat Haven

No. of Occupancy 2016 Slip Length Slips Occupied Vacant Rate Wait List Occupied 20' 57 30 27 53% 0 39 25' 24 20 4 83% 0 24 30' 80 66 14 83% 0 76 36' 29 28 1 97% 0 29 40' 32 30 2 94% 0 31 46' 17 14 3 82% 0 16 50' 90 69 21 77% 0 60 Side/End Tie 54 46 8 85% 0 31 Boathouses 46 46 0 100% 0 46 Sub-Total 429 349 80 81% 0 352 Limited 20' 13 4 9 31% 0 0 TOTAL 442 353 89 80% 0 352

Boat Yard Report

Jul-17 Jul-16 YTD 2017 YTD 2016 Boats into the yard this month 26 20 173 171 Boats into the water this month 27 17 169 154 Total Travel Lift Operations This Month 53 37 342 325

Year-To-Date Launch Ramp Permit Sales 762 762

John Wayne Marina

No. of Occupancy 2016 Slip Length Slips Occupied Vacant Rate Wait List Occupied 28' 72 72 0 100% 4 72 30' 46 46 0 100% 0 45 32' 28 28 0 100% 0 27 36' 22 22 0 100% 5 22 40' 19 19 0 100% 3 19 42' 21 21 0 100% 0 21 45' 10 10 0 100% 1 10 50' 27 26 1 96% 0 26 End Tie 49' 25 25 0 100% 1 24 Sub-Total 270 269 1 100% 14 266 Limited 20' 30 30 0 100% 0 28 TOTAL 300 299 1 100% 14 294

76 PABH Occupancy

Revenue Based 120%

100%

80%

60%

40%

20%

0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2015 2016 2017 Monthly maximum: $106,690

Slip Based 100%

80%

60%

40%

20%

0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Last-day-of-the-month 2015 2016 2017 272 slips total (20’ snapshot only slips, boat houses & side tie not included) 77 JWM Occupancy

Revenue Based 120%

100%

80%

60%

40%

20%

0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2015 2016 2017 Monthly maximum: $78,804

Slip Based 100%

80%

60%

40%

20%

0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Last-day-of-the-month 2015 2016 2017 300 slips total snapshot only

REPORT TO THE BOARD OF PORT COMMISSIONERS LOG HANDLING AND MARINE TERMINAL OPERATIONS July 2017

Log Handling MTD YTD YTD 2017 2017 2016 Log Operation: Dumped Loads** 96 1,277 293 Decked Loads 859 7,154 6,264

Green Crow Roll Out – Camp Run 37 226 240 T-7 Container Operations

# Containers Loaded 50 170 203

T-7/T-5 Log Operation-Discharge (Inbound/DeWater) # of Barges 7 45 17 # Barge Loads 267 2,505 1,043 # DeWater Loads 0 615 577

TOTAL LOADS 1,316 11,992 8,637 **LOADS DOWN AS ROUNDBOOM (DUMPED LOADS) Inbound Inbound Inbound 0 - Alcan 2 - Alcan 2 - Alcan 5 - PA Hardwood 20 - PA Hardwood 8 - PA Hardwood 0 - PT Paper 0 - PT Paper 0 - PT Paper

Outbound Outbound Outbound 1 - Georgia Pacific 3 - Georgia Pacific 0 - Georgia Pacific 1.5 - Sierra Pacific 14.5 - Sierra Pacific 7 - Sierra Pacific 2 - Southport 3 - Southport 0 – Southport 1 - Columbia Cedar 2 - Columbia Cedar 0 - Columbia Cedar .5 – NW Hardwood .5 – NW Hardwood

MTD YTD YTD Terminals #1 & #3 2017 2017 2016 Terminal Activity Repair Vessels – Tanker 0 5 6 Repair Vessels – Other+ 2 17 13 Cargo Vessels * Log Ship 2 11 9 Other (lay berth) 12 107 133

TOTAL # VESSELS 16 140 161 TOTAL # DOCK DAYS 46 405 443 * Includes passenger vessels 1 CFPC 3 CFPC 0 CFPC 1 M & R 7 M & R 5 M & R 0 Alcan/Munro 1 Alcan/Munro 4 Alcan/Munro 0 Cruise 0 Cruise 0 Cruise

NOTE: Unaudited information

79 Port of Port Angeles LY Loads - Cumulative January 2012 – July 2017

16,000

14,000

12,000 2017 Budget = 10,515 Loads 10,000

2016 Budget = 8,000 9,760 Loads

6,000

4,000

2,000

0 1/12 1/13 1/14 1/15 1/16 1/17

Year Jan Feb Mar April May June July Aug Sept Oct Nov Dec 2012 174 1,168 2,131 2,960 3,352 3,858 4,486 5,045 5,548 5,775 6,548 6,966 2013 463 833 1,335 2,089 2,662 3,376 4,579 5,768 6,674 7,608 9,024 9,796 2014 984 1,835 3,332 4,873 6,796 8,196 9,527 10,557 11,594 12,304 12,804 13,851 2015 600 1,021 1,198 1,419 2,041 2,794 4,791 5,682 6,330 8,125 8,942 9,587 2016 1,631 2,678 4,062 5,151 6,424 7,644 8,637 9,985 11,487 12,440 13,400 14,829 2017 1,450 3,270 5,195 7,303 9,346 10,676 11,922 80 Port of Port Angeles MT Tanker Days - Cumulative January 2012 – July 2017

140

120 2016 Budget = 110 Days 100

2017 Budget = 80 80 Tanker Days

0 1/12 1/13 1/14 1/15 1/16 1/17

Year Jan Feb Mar April May June July Aug Sept Oct Nov Dec 2012 15 25 39 49 61 65 81 89 103 104 115 118 2013 11 27 38 44 47 55 64 70 70 79 84 103 2014 21 34 34 40 44 72 72 95 95 106 127 127

2015 5 19 19 19 19 33 64 109 110 111 111 111 2016 1 11 12 18 18 18 30 33 33 63 80 102 2017 4 4 7 23 28 28 28 81

M E M O R A N D U M

DATE: 8/1/17 TO: Karen Goschen FROM: Holly Hairell RE: Reimbursable Days Summary for Commissioners July 2017

Connie Beauvais YTD

7/4/17 4th of July Parade participation 7/5/17 Board of Natural Resources meeting 7/11/17 Port Commission meeting 7/18/17 Port Angeles Business Association meeting 7/19/17 WEBPA meeting / CLT meeting with PDN 7/27/17 EDC Town Hall 7/31/17 Olympus Consulting Scope of Work meeting 87

Steven Burke

7/4/17 4th of July Parade participation 7/5/17 CRTC Board meeting 7/6/17 McKinley / MAC meeting 7/11/17 Port Commission meeting 7/12/17 Chamber Luncheon / Seattle Chamber meeting 7/14/17 Seattle Chamber meeting 7/17/17 Port Commission meeting 7/19/17 LEKT / EDC meeting 7/20/17 EDC Town Hall meeting in Forks 7/25/17 PA Chamber After Hours event 7/26/17 EDC Town Hall meeting in Sequim 7/27/17 EDC Town Hall meeting in PA / CRTC Open House 93

Colleen McAleer

Not available at this time…

Maximum number of compensated meeting days allowed each calendar year - Total 96.

82 ITEM FOR CONSIDERATION BY THE BOARD OF PORT COMMISSIONERS

August 14, 2017

SUBJECT: MARINE TERMINAL STORMWATER CONVEYANCE IMPROVEMENTS – CHANGE ORDER NO. 2

STAFF LEAD: Chris Hartman, Director of Engineering

RCW & POLICY REQUIREMENT RCW 53.12.270 - Delegation of powers to managing official of port district. • Master Policy, Resolution 14-1076, Section III(B. Change Orders) o Contracts awarded by the Board for which costs of aggregate changes are equal to or greater than $50,000 or 10% of the contract price, Board approval is required. . The Marine Terminal Stormwater Conveyance Improvements contract allows for change orders per Article G-09 of Section 00720 General Conditions.

BACKGROUND: The bid documents to complete the Marine Terminal Stormwater Conveyance Improvements were completed under a Professional Service Agreement with Kennedy / Jenks and advertised for bids in the Peninsula Daily News and the Seattle Daily Journal of Commerce on two separate dates: Friday, June 17 and Friday, June 24, 2016.

The project was awarded to low bid Contractor Glacier Environmental Services for a total amount of $1,441,808.65. There has been one prior change order for a time extension with zero ($0) cost associated with it.

ANALYSIS: Change Order #02 is for nine (9) separate items for a total cost increase to the contract, including Washington State Sales Tax, of $77,327.95. This is the final change order for the project and below is an explanation and cost breakdown for each item:

83 1. Additional Excavation & Export of Soil $78,300.42 Cost includes stockpiling, transport and disposal costs for clean and contaminated soil.

2. Replace existing T3 Chocks $5,143.60 Cost to remove existing timber fender system on the dock and reinstall with new hardware following the completion of the new bull rail.

3. Concrete Slab Removal $4,516.32 Cost to remove a below grade concrete slab that was discovered during installation of stormwater piping.

4. Additional Water Treatment $6,90849 Additional water treatment measures were required prior to discharge of groundwater to the City of Port Angeles Sanitary Sewer.

5. Waterline Repair $3,771.52 An unidentified water line was broke during construction. The additional cost was to repair it.

6. Paving Related Changes $28,108.00 Additional cost was result of expanding the paving area and requiring an alternate method of paving on the dock. Paving over the existing timber pier required the contractor to mobilize in much smaller paving equipment due to weight limitations.

7. Custom Vault Lid $1,375.40 The specified vault lid didn’t match the size of the existing vault. The Contractor had one custom fabricated.

8. Fog Seal Deduction -$6,788.00 Deletion of the Fog Seal bid item will be a partial offset to the additional work included in this change order.

9. Force Account Budget -$50,000.00 Deletion of the Force Account budget will be a partial offset to the additional work included in this change order.

FISCAL IMPACT: The final contract amount with Glacier, including Change Order No. 2, is $1,519,136.60. The total fiscal impact of the project is: • Investigation, Design, Permit (2015 – 2016) = $ 250,000 • Construction Administration (2016 – 2017) = $ 40,000 • Construction (2016 – 2017 rounded) = $1,520,000 Project Total = $1,810,000

84 RECOMMENDED ACTION: Staff recommends the Commission authorize the Executive Director to execute Change Order #02 with Glacier Environmental Service, Inc. in the amount of Seventy-Seven Thousand Three Hundred Twenty-Seven Dollars and Ninety-Five Cents ($77,327.95).

This authorization brings the total and final contract amount to One Million Five Hundred Nineteen Thousand One Hundred Thirty-Six Dollars and Sixty Cents ($1,519,136.60).

85 INFORMATIONAL REPORT TO THE BOARD OF PORT COMMISSIONERS

August 14, 2017

Subject: 2017 QUARTER 2 CAPITAL BUDGET REPORT

Presented by: Chris Hartman, Director of Engineering

BACKGROUND: The Port’s 2016 Budget was approved by the Commission on November 14, 2016 within Resolution 16-1142. The budget included $9,401,000 in spending from the Port’s Capital Fund and $771,910 in federal grant funds for a total capital budget of $10,172,910. The following report, and attached spreadsheet, will show the capital investments and how they compare to budget. This is a high level evaluation that will give the Commission an idea where staff estimates capital spending will be at the end of the year. These numbers will be further refined at the end of the third quarter to better inform the Commission to the available funds for the 2018 Capital Budget.

ANALYSIS: From January through June the Port has spent a total of $1,465,144 and has received $316,157 in grant reimbursements for a net spending from the Port’s Capital Fund of $1,148,987 (See attached breakdown of each project and year to date net expenditures). There have been a number of significant changes in capital planning since the budget was adopted last November that include:

• “MT Stormwater Conveyance Improvements” o This project was delayed in 2016 due to bad weather carried over into 2017. There is no budget allocation in 2017 Capital Budget. • “MTIP Wash Down Facility

o Engineer’s estimate came in well above budget. Port is working with consultant to reduce cost. • “Platypus – Westport S.W. Conveyance Separation”

o Project has been delayed to allow better coordination with Platypus & Westport. • “Boat Yard Building Upgrades”

o Project is on-hold because the Boat Yard has been extremely busy that we haven’t been able to vacate the building to allow for the work.

86 • “Loy Yard Stormwater Conveyance Improvements”

o Project delayed until next year to allow for an Archaeological Site Assessment and Survey to be performed. • “Sign projects” o Sign projects have been delayed to allow for Port wide plan to be developed prior to installing new signs. • “FIA Apron Construction”

o Project was delayed from 2016 to 2017 due to poor weather. There is no budget allocation in 2017 Capital Budget. • “CMC Vehicle Gate”

o Port is working with current CMC tenants to develop a plan for a gate and security fencing. Project will begin in early 2018. • “MTIB Facility Improvements – Airborne ECS”

o This project was not budgeted, but was made an immediate priority mid-year following Airbone ECS decision to create a new manufacturing facility within the Port’s existing Multi-Tenant Industrial Building. • “PABH Laundry Facility” o Bids came in well above budget. Project will be constructed using Port Labor in 2018. • “JWM Fire Alarm Control Panel Upgrade”

o After further staff evaluation, this project is unnecessary. • “JWM Gutter Repairs”

o Facilities Maintenance has performed some routine maintenance and gutters are no longer leaking. Staff is currently looking into a coating system to prolong the life of the gutters. • “Admin Elevator Upgrades” o Staff is struggling with contractor availability to perform this work. Project may carry over to 2018. The scope of upgrades has significantly grown after further evaluation by the Port’s elevator inspector. • “Mechanic Shop Hoist”

o Carry over to 2018. • “Industrial Property Acquisition”

o This is a place holder to allow staff to pursue acquisition of industrial property if it becomes available.

87 PROJECTED YEAR END: The projected spending from the Port’s Capital Funds is approximately $3.7 million dollars, which is 39% of the $9.4 million dollar budget. This leaves approximately $5.7 Million as the delta between the budget and projected year end spending. This is primarily due to the delay of two main capital projects: Marine Trades Industrial Park Wash-Down Facility and the Log Yard Stormwater Conveyance Improvements.

See attached spreadsheet for a project by project financial breakdown.

88 2017 Q2 CAPITAL BUDGET VS. ACTUAL AND PROJECTED YEAR END DELTA YTD SPENT - PROJECTE DEPTS PROJECT DESCRIPTION 2017 BUDGET YEAR END - GRANT YEAR END BUDGET 11-MT Stormwater Treatment Design $ 250,000 $ - $ 150,000 $ 150,000 11-MT Stormwater Conveyance Impts. $ - $ 263,766 $ (520,000) $ 520,000 11-MT Security Improvements $ 75,000 $ 201,293 $ (41,293) $ 116,293 11-MT Sprinkler Zone Replacement $ 350,000 $ - $ 150,000 $ 200,000 11-MT T3 Structural Repair Design $ 50,000 $ 2,649 $ 19,000 $ 31,000 11-MT T1 Bulkhead Repair Design $ 30,000 $ 1,589 $ 12,000 $ 18,000 11-MT T3 Head-Tie Dolphin $ 950,000 $ 128,461 $ (40,000) $ 990,000 11-MT T1 Electrical Grounding $ - $ 40,181 $ (40,181) $ 40,181 15-MTA MTIP Wash Down Facility $ 2,000,000 $ 107,864 $ 1,892,136 $ 107,864 15-MTA Platypus-Westport S.W. Separation $ 250,000 $ - $ 250,000 $ - 15-MTA Boat Yard Building Upgrades $ 50,000 $ - $ 50,000 $ - 15-MTA MTIP Site Design $ 400,000 $ - $ 400,000 $ - 15-MTA Boat Yard Wash Down Asphalt Imprv $ 30,000 $ 1,413 $ - $ 30,000 15-MTA Restaurant HVAC Upgrades $ 25,000 $ - $ 25,000 $ - 21-LY Stormwater Conveyance Impts. $ 3,600,000 $ 159,218 $ 3,390,782 $ 209,218 21-LY Sweeper Replacement $ 25,000 $ 31,670 $ (6,670) $ 31,670 21-LY Entrance Sign $ 15,000 $ - $ 15,000 $ - 21-LY T7 Walkway (Scales) $ - $ 6,109 $ (6,109) $ 6,109 31-FIA Environmental Assessment $ 35,000 $ - $ 35,000 $ - 31-FIA Master Plan $ 5,000 $ 28,841 $ (23,841) $ 28,841 31-FIA Apron Construction $ - $ 3,001 $ (25,000) $ 25,000 33-ARP Fire Alarm Control Panel Upgrades $ 80,000 $ 90,233 $ (15,000) $ 95,000 33-ARP Backflow Valve Replacement $ 85,000 $ 54 $ (30,000) $ 115,000 33-ARP CMC Vehicle Gate $ 50,000 $ - $ 35,000 $ 15,000 33-ARP MTIB Facility Improvements $ - $ 4,315 $ (500,000) $ 500,000 41-PABH Fuel Float Design $ 115,000 $ - $ 115,000 $ - 41-PABH Laundry Facility $ 70,000 $ 14,909 $ 55,091 $ 14,909 41-PABH East & West Entrance Signs $ 50,000 $ - $ 50,000 $ - 41-PABH Harbor Master Building Maintenance $ 30,000 $ 25,159 $ - $ 30,000 41-PABH 3-Phase Power Extension (E-F Float) $ 80,000 $ 5,377 $ (113,000) $ 193,000 43-JWM Fire Alarm Control Panel Upgrade $ 20,000 $ - $ 20,000 $ - 43-JWM JWM Air Handler Replacement $ - $ 857 $ (7,500) $ 7,500 43-JWM Gutter Repairs $ 30,000 $ - $ 30,000 $ - 43-JWM Utility Gator Replace $ 15,000 $ 13,075 $ 1,925 $ 13,075 43-JWM Dumpster Enclosure Replace $ 30,000 $ 12,871 $ 17,129 $ 12,871 80-AD Budget Contingency $ 200,000 $ - $ 200,000 $ - 80-AD Elevator Upgrades $ 80,000 $ - $ (70,000) $ 150,000 80-AD 2nd Floor Heat Pump Replacement $ 50,000 $ - $ - $ 50,000 91-MM Shop Hoist $ 20,000 $ - $ 20,000 $ - 91-MM Portable Welder $ 6,000 $ 6,082 $ (82) $ 6,082 Industrial Property Acquisition $ 250,000 $ - $ 250,000 $ - TOTALS = $9,401,000 $1,148,987 $5,744,387 $3,706,613

89 2017 2nd Quarter Capital Budget Report

Presented August 14, 2017

www.portofpa.com 2017 CAPITAL BUDGET Port Capital Funds = $ 9,401,000 Grant Funds = $ 771,910 Total Capital Budget = $10,172,910

www.portofpa.com 2017 PROJECTED YEAR END Projected Port Capital Expenditures = $ 3,706,613 Projected Grant Fund Reimbursements = $ 316,157 Total Projected Capital Expenditures = $ 4,022,770

www.portofpa.com Marine Terminal Security Improvements

www.portofpa.com Terminal 1 Electrical Grounding

www.portofpa.com Log Yard Scale Platform

www.portofpa.com 1010 – 1050 Building Fire Alarm Control Panel Upgrades

www.portofpa.com John Wayne Marine Trash Enclosure

www.portofpa.com PABH Harbor Master Area Improvements

www.portofpa.com Equipment Purchases

www.portofpa.com INFORMATIONAL REPORT TO THE PORT BOARD OF COMMISSIONERS

August 14, 2017

SUBJECT: Former Dungeness Pier Pile Removal

STAFF LEAD: Jesse Waknitz, Environmental Manager

BACKGROUND: The North Olympic Salmon Coalition (NOSC) has recently approached the Port regarding the removal of the remaining 165 piles of the former Dungeness Pier. The pier is located on Port owned tidelands. They would utilize an approximately $250k State Salmon Recovery Funding Board grant to perform this work. This proposed pile removal would enhance the environment of the Dungeness Bay by removing creosote treated wood structures that displace and impact tideland habitat.

NOSC originally approached the Port regarding this pile removal in 2013 to be conducted as part of their $5 Million 3 Crabs Restoration Project (Attached Figure 1). At that time, Port staff recommended that the pilings not be removed so they could be utilized for future in-water work mitigation during the development of the Final Mitigation Plan for the Port Programmatic Maintenance and Upgrades Project. This mitigation plan was finalized in 2015 and the removal of the Dungeness Pier pilings as mitigation was not included in the plan for the following reasons:

1. Relative high cost to extract the piles. $40k to $80k increase in total cost compared to concurrently removing pilings in Port Angeles Harbor during facility maintenance or improvement projects.

2. The distance of the former Dungeness Pier relative to Port operations within Port Angeles Harbor. Regulatory agencies assign more value to mitigation occurring adjacent to a proposed project.

3. The many unused or underused structures in Port Angeles Harbor available for mitigation that better align with regulatory agencies mitigation policies due to proximity to Port projects/operations and intact overwater decking.

ANALYSIS: Derelict piles in most cases are a re-development asset. The Dungeness Pier is not an asset because of its location and a majority of the structure has deteriorated. The Dungeness Pier has deteriorated from approximately 500 pilings to 165. In 2013, WA Department of Natural Resources removed 12 tons of creosote treated wood debris from the Dungeness Spit and 3 Crabs area. The pilings will continue to deteriorate over time increasing the risk of the pilings falling over or becoming dislodged and potentially requiring removal by the Port.

RECOMMENDED ACTION: Staff is looking for consensus from the Commission to move forward in working with NOSC to remove the remaining derelict Dungeness Pier structure. The Port would require NOSC to work with Olympic Peninsula Audubon Society regarding the fate of the Purple Martin bird boxes.

100

Attachments: Figure 1 – 3 Crabs Restoration Project Figure 2 – Port Tidelands (Former Dungeness Pier) Photos – Former Dungeness Pier

Figure 1 – 3 Crabs Restoration Project

101

Figure 2 – Port Tidelands (Former Dungeness Pier)

102

Photos – Former Dungeness Pier

Photo 1: Former Dungeness Pier (April 2013)

Photo 2: Former Dungeness Pier & (April 2013)

103 2017 YTD Quarter 2 Financial Review

Presented August 14, 2017 By John Nutter, Director of Finance & Admin

104

www.portofpa.com Agenda

• Total Operating Results

• Line of Business Results

2 of 11 105

www.portofpa.com Operating Activity (Excludes Non-Operating & Depreciation) 6,000,000

4,000,000

2,000,000

0 Operating Revenues Operating Expenses Surplus Actual 5,236,529 4,325,182 911,347 Budget 4,505,475 4,290,896 214,579 Over(Under) 731,054 34,286 696,768

Revenues: higher mainly due to increased export log activity, holdover lease Expenses: higher in depts supporting export log activity, offset by Airports & Admin Q2 Surplus/(Deficit) History: 2014 = $1.77 million; 2015 = $442k 2016 = $811k; 2017 = $911k Actual Q2 Operating Surplus better than budget – increased revenues paired with lower expense

3 of 11 106

www.portofpa.com 2017 Q2 - by Line of Business 2017 Operating Margin as % of Revenue Revenues $5,236,529 1,500,000 81%

1,250,000

Marinas, 1,000,000 1,301,404 Marine Terminals, 750,000 1,744,539 44% Rental Prop & 500,000 Airports, 34% 830,762 19% 250,000 Log Yard, Marine 34% 1,113,453 Trades, 0 246,373 Marine Marine Rental Prop Log Yard Marinas Terminals Trades & Airports Q2 Actual 1,406,734 83,638 215,009 282,944 571,343

Op Margin as a % of Revenue MT 81% LY 19% Marinas 44% MTA 34% RP + ARP 34%

4 of 11 107

www.portofpa.com MT & LY Activity • Marine Terminal – T3 log ship export operations driving revenue (Dockage-Cargo, Wharfage, Services & Facilities). – Revenues over budget by 24% or $333k. • Log Yard – Higher revenues due to increase of estimated export log activity.

5 of 11 108

www.portofpa.com Marine Trades & Marinas

• Covered & Dry-land boat storage up with mixture of pleasure craft & fishing vessels. • Higher expenses due to Wastewater treatment costs & work on the MTIP Master Plan. • Marinas – PABH & JWM higher than budget mainly due to monthly moorage.

6 of 11 109

www.portofpa.com Airport Operations

• Hangar rentals drive slightly higher than budget. • Lower expenses mainly due to marketing funds not used. Budget includes funds to aid marketing when commercial passenger service returns to FIA.

7 of 11 110

www.portofpa.com Rental Properties & Airport RP

• Revenues 15% higher than budget – ARP over due to longer than expected occupancy of a hold over lease. Tenant departure undetermined at this time. – RP slightly over due to temp lease at MT I P. • Expenses under at ARP due to broker services not used - Bldg 10.10 availability is yet to be determined.

8 of 11 111

www.portofpa.com General & Admin • FM & MM over budget - Increased support of LY, export log activities. • Business Development under budget - Timing of Advanced Wood Products Initiative, Sustainable Harvest and other Timber Advocacy. • Admin Expenses less than budget - Across multiple categories. - Salaries & Benefits – mgmt decisions; timing of outside services & travel/training.

9 of 11 112

www.portofpa.com NonOperating

• General NonOp – Higher than budget due to higher interest revenue as a result of lower capital spending . • Capital NonOp – Property tax receipts & bond costs on budget.

10 of 11 113

www.portofpa.com Any questions ?

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www.portofpa.com Port of Port Angeles 2017 Actual to Budget Variance Report – Operations 2nd Quarter YTD June 2017 (excludes Capital Projects)

Table of Contents 1. Actual to Budget Variance Explanation 2. YTD Q2 comparison by year 2014 through 2017 3. Actual to Budget Variance Graphs 4. Actual to Budget Variance Reports a. General Fund Summary b. Account Summary by Department

Operating Variance Explanation

Q2 2017 YTD operating revenues are $5.23 million, which is $731k or 16% higher than budget. The operating expenses are $4.32 million, which is $34k or 1% over budget. Expenses did not increase in proportion to revenues resulting in an Operating Surplus of $911k (variance of $696k higher than budget). The operating deficit after depreciation, of ($284k), is a favorable variance of $706k or 71% better than budget. Budgeted surplus was $214k. Greater than expected log export activity is largely responsible for the higher revenues as well as a holdover lease at Bldg. 10.10 in the Airport Industrial Park.

Depreciation YTD is $1.2 million which results in the net operating deficit of ($284k). The net operating surplus before depreciation of $911k represents cash flow.

Non-Operating Variances Explanation

The following explanation is based on Non-Operating across all departments, not just the Non-Operating (90) department.

Non-Operating Net Surplus Variance (General and Capital): Net Non-Op surplus is $182k over budget mainly due to interest earnings from investments and increased grant funding for the FEMA Port Security Grant Program.

Budget Reclassifications

Q1, Q2 - no changes.

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Adopted Budget and Report Budget: The following table summarizes the differences (if any) between the adopted budget and the budget in the financial statement variance reports.

Approved Report Report Over (Under) Approved Operating Revenues $ 8,961,751 $ 8,961,751  Q1, Q2 - No changes Expenses $ 8,461,392 $ 8,461,392  Q1, Q2 - No changes Op Surplus $ 500,359 $ 500,359 Before depreciation (cash flow) Depreciation $ 2,412,516 $ 2,412,516 Op Net Deficit ($1,912,157) ($1,912,157) After depreciation Non-Operating Revenues General $ 340,750 $ 340,750  Q1, Q2 - No Changes Capital 2,242,910 2,242,910 Total 2,583,660 $ 2,583,660 Expenses General $ 400,000 $ 400,000  Q1, Q2 – No changes Capital 281,304 281,304 Total $ 681,304 $ 681,304 Surplus/(Def) General ($ 59,250) ($ 59,250)  Q1, Q2 – No changes Capital 1,961,606 1,961,606 Total $ 1,902,356 $ 1,902,356 Op & NonOp Net Deficit ($ 9,801) ($ 9,801) After depreciation

**continue on to next page**

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116 Department Actual to Budget Variance Explanation

Variance Explanation of Variance Total Operating $731k or Revenues 16% higher Marine $333k or T1 Tanker/Non-Tanker services (Dockage, Labor Fee, Terminals 24% Security Fee, Shore Power Utilities) are under ($57k). This is higher offset by T3 log ship operations which are over budget by $392k - (Dockage for Cargo, Wharfage, Services & Facilities) due to increase in estimated cargo volume.

Marine $16k or Covered & Dry Storage over by $12k (mixture of pleasure Trades Area 7% higher craft & fishing vessels) and Travel Lift usage slightly over. Log Yard $245k or Revenues are higher due to increase from estimated export 28% log activity: Land Services $141k, Equip Rental $59k, Water higher Services $12k, Barging $12k & Banding sales $12k Airports – FIA $5k or 3% Revenues are slightly higher than budget due to FIA Hangar & SEK higher rentals & tie downs at both FIA and SEK. Airport Rental $83k or Revenues higher than budget mainly due to delayed tenant Properties – 14% departure of Bldg 10.10. Original (planned) end of lease FIA higher was 2016 Q2. Tenant departure undetermined at this time. PA Boat $18k or Revenue higher than budget due to Monthly Moorage over Haven 3% higher by $23k; Non-tax Monthly Moorage over by $19k; Security (includes Public for Navy/electric pass-thru sales/misc - higher by $7k. Boat Ramp) Annual Launch Permits under by ($3k); Daily Launch Permits under by ($1k); Live Aboard & Dock Boxes under by ($1k). Wharfage is currently under budget by ($8k) and is expected to remain under due to the whale watching boat moving its mooring out of PABH. Structure rental is under ($9k) – budgeted lease higher than actual negotiated rates. John Wayne $21k or Monthly moorage is over $7k, Non-Taxable is over $6k Marina 4% higher Transient is under ($6k), Pass-thru utility sales higher by (includes Public $15k. Daily launch permits slightly higher, offset to zero by Boat Ramp) lower Annual launch permits, Gas sales are slightly over with lower diesel sales netting total fuel sales to about zero. Rental $7k or Land lease over by $7k due to unbudgeted, temporary Properties 23% over usage of the old Kply site (future MTIP).

Qtr2 Variance-Ops Narrative 2017.docx Page 3 of 5

117 Variance Explanation of Variance Operating $34k or 1% Expenses over Marine ($9k) or T3 Dredge Study underway offset by timing of maintenance. Terminals (3%) Lower than budget tanker repair results in lower shore power under usage. Marine $12k or Over budget due to work on Master Plan (timing) & Trades Area 8% over wastewater treatment, slightly offset by lower expenses in misc/other categories. Log Yard $326k or Expenses are over budget as increase in log export activities 57% over occur, including increased local usage of Port Log Yard. OT budget and FM Labor charged to Ops contributes, as well as LY general operating maintenance (bark debris removal, dust control, drainage/storm-water site prep, rock for yard fill), increased fuel usage and, unscheduled, major repair work on LY heavy equipment. Airports – FIA ($49k) or Under budget mainly due to marketing funds not used. & SEK (14%) Budget includes funds to aid marketing when commercial under passenger service returns to FIA. No air service as of Q2. Airport Rental ($80k) or Under budget mainly due to Broker Services not engaged as Properties - (34%) of Q2, Bldg 10.10 availability has not been determined. FIA under Maint expense also under due to Bldg 10.10 work planned, budget Port cannot complete until tenant departure. PA Boat $5k or 1% On budget as of Q2. Haven over (includes Public Boat budget Ramp) John Wayne $27k or Over budget due to credit card fees (increased cc usage by Marina 7% over tenants), OT (7 day operation), unplanned security charge (includes Public Boat budget out due to personnel issues and utility & fuel expenses higher Ramp) than expected. Rental $20k or Over budget due to change in department structure. Salary Properties 32% over budget did not include personnel, only charge-outs. Actuals budget include 2 individuals for the year Mechanical $14k or Over due to safety supplies, waste oil disposal & wash rack Maintenance 20% over cleanouts higher than anticipated (supporting increased log export activity). Facilities $28k or Over due to less time spent in other departments as Maintenance 28% over expected (mgr & maint labor chargeouts) and more work by budget Mech Dept than originally budgeted (FM vehicles & equip). Business ($71k) or Expenses are under due to restructure of personnel, one (Economic) (11%) person was budgeted, but no employees are currently Development under assigned. In addition, timing effects lower than budget budget expenses for outside services such as Advanced Wood Products Initiative, Sustainable Harvest and Other Timber Advocacy efforts.

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118 Variance Explanation of Variance Admin ($188k) or Currently under budget across multiple categories to include (18%) under salaries & benefits (no merit increases, Admin Asst vacant), outside services and travel/training. $27k has been utilized from the $125k annual Contingency ($25k CRTC adjustment & $2k addtl economic impact funds). Operating $696k or Revenues were over budget in total by 16%. Most Surplus 325% departments were above budget to included MT, LY, ARP (before Depr) higher and Marinas. MT & LY are being driven by the better than expected export log market, ARP by a holdover lease at the 10.10 Bldg, and the Marinas by monthly moorage. Total Expenses were 1% over; higher log export related items and lower Admin.

The Non-Operating (90) Department report only includes grant revenue for environmental projects. Grant revenues for capital projects are reported in each department. There is a separate Capital Projects Report for the second and fourth quarter.

The following analysis is based on the Non-Operating (90) Department report. The Non- Operating Graphs are based on “All” departments, which includes operating and capital grant revenues across all departments.

Variance Explanation of Variance Non-Op $158k  Interest revenue from investments drives higher than General higher budget (conservative estimate) combined with lower than Surplus expected environmental expenses. Non-Op $2k  Property tax receipts & Bond costs on budget. Capital lower Surplus

Qtr2 Variance-Ops Narrative 2017.docx Page 5 of 5

119 Port of Port Angeles YTD Qtr2 Financial Report YTD Jun YTD Jun YTD Jun YTD Jun OPERATING REVENUES 2014 2015 2016 2017 DOCKAGE 819,883 459,974 523,060 647,479 WHARFAGE 645,185 290,220 476,055 524,486 SERVICE & FACILITIES 375,844 168,609 282,394 316,854 MT HANDLING 4,014 2,240 0 0 LABOR SERVICES / SECURITY FEE 112,572 72,862 69,407 89,750 LOG YARD STAGING 23,169 44,612 7,933 22,964 LOG YARD LAND SERVICES 660,684 212,394 749,008 752,263 LOG YARD WATER SERVICES 104,287 123,130 27,759 80,961 MOORAGE 911,879 879,411 945,866 1,001,820 MARINA & YARD FEES 144,421 145,203 136,657 141,690 LANDING/PARKING FEES 7,416 3,038 3,553 3,540 HANGAR/TIE DOWN 48,110 46,186 49,196 54,607 OTHER USER FEES 10,220 3,302 3,426 11,453 EQUIPMENT RENTAL 230,721 166,431 196,181 230,946 LAND LEASE/RENT 317,133 345,401 309,784 334,148 STRUCTURE LEASE/RENT 604,346 574,044 598,971 709,219 USE AGMT AND OTHER RENT 17,321 22,426 23,996 20,580 UTILITY PASS THRU & PRODUCT SALES 338,469 291,036 210,763 260,180 MISC & INTERDEPT REVENUE 7,969 10,511 23,568 33,591 TOTAL OPERATING REVENUES 5,383,642 3,861,029 4,637,576 5,236,529

OPERATING EXPENSES SALARIES, WAGES & BENEFITS 1,525,371 1,513,260 1,584,403 1,595,412 SUPPLIES 198,613 137,238 166,635 179,804 OUTSIDE SERVICES 502,992 437,731 777,238 965,137 PUBLIC INFORMATION 9,842 15,827 26,356 44,265 MARKETING 12,815 10,654 18,940 25,313 COMMUNITY RELATIONS 65 0 2,933 1,553 ADS, DUES & PUBLICATIONS 43,358 44,900 34,423 31,044 TRAVEL MEETINGS 15,227 22,769 14,933 20,306 TRAVEL/TRAINING 29,087 44,449 23,103 22,795 PROMO HOSTING, TRADE & INDUSTRIAL DEV 4,832 4,692 3,579 8,451 RENT, UTILITIES, INSURANCE, TAXES 413,933 417,810 447,949 533,807 UTILITY (Pass Thru) & COST OF GOODS SOLD 259,010 215,402 161,159 212,475 OTHER EXPENSES (Misc & Interdept) 17,737 14,129 18,679 40,934 MAINTENANCE LABOR & BENEFITS 350,793 369,032 390,967 414,185 MAINTENANCE (Materials & Services) 226,991 171,288 154,760 229,701 TOTAL OPERATING EXPENSES 3,610,668 3,419,181 3,826,056 4,325,182

OPERATING SURPLUS (DEFICIT) (before Depr) 1,772,975 441,847 811,521 911,347

DEPRECIATION (includes donated assets) 955,925 1,002,143 1,077,391 1,196,171

OPERATING SURPLUS (DEFICIT) (after Depr) 817,050 (560,296) (265,870) (284,824)

120 Operating Activity (Excludes Non‐Operating & Depreciation) 6,000,000

4,000,000

2,000,000

0 Operating Operating Surplus Revenues Expenses Actual 5,236,529 4,325,182 911,347 Budget 4,505,475 4,290,896 214,579 Over(Under) 731,054 34,286 696,768

Marine Terminal (Before Allocations & Depreciation) 2,000,000 1,500,000 1,000,000 500,000 0 Revenues Expenses Surplus Actual 1,744,539 337,805 1,406,734 Budget 1,411,642 347,225 1,064,418 Over(Under) 332,897 (9,420) 342,316

Marine Trades Area (Before Allocations & Depreciation) 300,000

200,000

100,000

0 Revenues Expenses (Deficit) Actual 246,373 162,734 83,638 Budget 230,030 150,850 79,179 Over(Under) 16,343 11,884 4,459

O:\Accounting\2017 Financial Reports\Q2 2017\2017 Q2 Graphs-Ops w Marinas as of 8-09-17.xlsx, GRAPHS Graph Page121 1 of 4 Log Yard (Before Allocations & Depreciation) 1,250,000 1,000,000 750,000 500,000 250,000 0 Revenues Expenses Surplus Actual 1,113,453 898,444 215,009 Budget 867,780 571,854 295,927 Over(Under) 245,672 326,590 (80,918)

Airports (Before Allocations & Depreciation) 600,000

300,000

(300,000) Revenues Expenses (Deficit) Actual 127,088 306,955 (179,867) Budget 122,243 356,779 (234,536) Over(Under) 4,845 (49,824) 54,669

Airport Rental Properties (Before Allocations & Depreciation) 1,000,000 750,000 500,000 250,000 0 Revenues Expenses Surplus Actual 661,998 156,031 505,968 Budget 578,189 236,635 341,554 Over(Under) 75,440 (80,604) 156,044

O:\Accounting\2017 Financial Reports\Q2 2017\2017 Q2 Graphs-Ops w Marinas as of 8-09-17.xlsx, GRAPHS Graph Page122 2 of 4 PA Boat Haven (includes Boat Ramp) (Before Allocations & Depreciation) 750,000

500,000

250,000

0 Revenues Expenses Surplus Actual 690,417 341,463 348,955 Budget 671,778 336,624 335,154 Over(Under) 18,639 4,838 13,800

John Wayne Marina (includes Boat Ramp) (Before Allocations & Depreciation) 750,000

500,000

250,000

0 Revenues Expenses Surplus Actual 610,986 388,598 222,389 Budget 589,850 361,592 228,258 Over(Under) 21,136 27,006 (5,870)

Rental Properties (Before Allocations & Depreciation) 100,000

50,000

(50,000) Revenues Expenses (Deficit) Actual 41,676 84,832 (43,156) Budget 33,963 64,413 (30,451) Over(Under) 7,713 20,418 (12,706)

O:\Accounting\2017 Financial Reports\Q2 2017\2017 Q2 Graphs-Ops w Marinas as of 8-09-17.xlsx, GRAPHS Graph Page123 3 of 4 Allocable Expenses (after Direct Charges) 2,000,000

1,500,000

1,000,000

500,000

0 Mech Facilities Admin & Allocated Bus Dev Shop Maint Gen Total Actual 86,084 126,516 552,802 882,920 1,648,322 Budget 71,568 98,574 623,713 1,071,069 1,864,924 Over(Under) 14,516 27,942 (70,911) (188,149) (216,602)

Non‐Operating General (All Depts) (Interest, Timber Taxes, Misc, Op Grants, Environmental)

250,000

150,000

50,000

(50,000) Revenues Expenses Surplus Actual 247,231 135,864 111,367 Budget 170,375 200,000 (29,625) Over(Under) 76,856 (64,136) 140,992

Non‐Operating Capital Related (All Depts) (Prop Taxes, Capital Grants, Bonds) 1,500,000

1,000,000

500,000

0 Revenues Expenses Surplus Actual 1,051,642 143,223 908,420 Budget 1,008,000 140,652 867,348 Over(Under) 43,642 2,571 41,072

O:\Accounting\2017 Financial Reports\Q2 2017\2017 Q2 Graphs-Ops w Marinas as of 8-09-17.xlsx, GRAPHS Graph Page124 4 of 4 Port of Port Angeles General Fund Summary Actual to Budget Variance Report For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

MARINE TERMINAL 1,744,539 1,411,642 332,897 24% 2,823,285 MARINE TRADES AREA 246,373 230,030 16,343 7% 460,059 LOG YARD 1,113,453 867,780 245,672 28% 1,735,561 AIRPORTS 127,088 122,243 4,845 4% 244,486 AIRPORT RENTAL PROPERTIES 661,998 578,189 83,810 14% 1,107,177 MARINA: Port Angeles Boat Haven 690,417 671,778 18,639 3% 1,343,557 MARINA: John Wayne Marina 610,986 589,850 21,136 4% 1,179,701 RENTAL PROPERTIES 41,676 33,963 7,713 23% 67,925 TOTAL OPERATING REVENUES 5,236,529 4,505,475 731,054 16% 8,961,751

NON-OPERATING REVENUES GENERAL 247,231 170,375 76,856 45% 340,750 CAPITAL 1,051,642 1,008,000 43,642 4% 2,242,910 TOTAL NON-OPERATING REVENUES 1,298,873 1,178,375 120,498 10% 2,583,660

TOTAL REVENUES 6,535,402 5,683,850 851,552 15% 11,545,411

OPERATING EXPENSES

MARINE TERMINAL 337,805 347,225 (9,420) (3%) 694,441 MARINE TRADES AREA 162,734 150,850 11,884 8% 301,701 LOG YARD 898,444 571,854 326,590 57% 1,143,708 AIRPORTS 306,955 356,779 (49,824) (14%) 713,554 AIRPORT RENTAL PROPERTIES 156,031 236,635 (80,604) (34%) 473,219 MARINA: Port Angeles Boat Haven 341,463 336,624 4,838 1% 673,238 MARINA: John Wayne Marina 388,598 361,592 27,006 7% 723,184 RENTAL PROPERTIES 84,832 64,413 20,418 32% 128,827 BUSINESS UNIT EXPENSES 2,676,861 2,425,972 250,888 10% 4,851,872

MECHANICAL MAINTENANCE 86,084 71,568 14,516 20% 143,136 FACILITIES MAINTENANCE 126,516 98,574 27,942 28% 197,148 ECONOMIC DEVELOPMENT 552,802 623,713 (70,911) (11%) 1,127,098 ADMIN & GENERAL 882,920 1,071,069 (188,149) (18%) 2,142,138 MAINT & ALLOCATED EXPENSES 1,648,322 1,864,924 (216,602) (12%) 3,609,520 OPERATING EXPENSES 4,325,182 4,290,896 34,286 1% 8,461,392

DEPRECIATION 1,196,171 1,206,258 (10,087) (1%) 2,412,516

NON-OPERATING EXPENSES GENERAL 135,864 200,000 (64,136) (32%) 400,000 CAPITAL 143,223 140,652 2,571 2% 281,304 TOTAL NON-OPERATING EXPENSES 279,087 340,652 (61,565) (18%) 681,304

TOTAL EXPENDITURES 5,800,440 5,837,806 (37,366) (1%) 11,555,212

Error: Total Over (Under) Sum of All Accounts 0 0 0 (100%) 0

OPERATING NET SURPLUS (DEFICIT) (284,824) (991,679) 706,855 (71%) (1,912,157) NON-OP NET SURPLUS (DEFICIT) 1,019,786 837,723 182,063 22% 1,902,356 NET SURPLUS (DEFICIT) 734,962 (153,956) 888,918 (577%) (9,801)

Report: Bud v Act GF Su2 Printed on: 8/9/2017 12:27 PM Page 1 Row: General Fund Sum w Marinas Column: Gen Fund Variance Report YTD 125 Port of Port Angeles Summary of All Units Account Summary: Budget to Actual Variance For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

DOCKAGE 647,479 535,590 111,889 21% 1,071,180 WHARFAGE 524,486 398,550 125,936 32% 797,100 SERVICE & FACILITIES 316,854 235,440 81,414 35% 470,880 MT HANDLING 0 1,250 (1,250) (100%) 2,500 LABOR SERVICES / SECURITY FEE 89,750 78,668 11,082 14% 157,336 LOG YARD STAGING 22,964 16,262 6,702 41% 32,524 LOG YARD LAND SERVICES 752,263 611,184 141,080 23% 1,222,367 LOG YARD WATER SERVICES 80,961 68,583 12,377 18% 137,167 MOORAGE 1,001,820 958,950 42,870 4% 1,917,900 MARINA & YARD FEES 141,690 136,300 5,390 4% 272,600 LANDING/PARKING FEES 3,540 3,550 (10) 0% 7,100 HANGAR/TIE DOWN 54,607 50,200 4,407 9% 100,400 OTHER USER FEES 11,453 8,150 3,303 41% 16,300 EQUIPMENT RENTAL 230,946 160,130 70,816 44% 320,260 LAND LEASE/RENT 334,148 287,492 46,656 16% 525,783 STRUCTURE LEASE/RENT 709,219 657,904 51,314 8% 1,315,809 USE AGMT AND OTHER RENT 20,580 21,950 (1,370) (6%) 43,900 UTILITY PASS THRU & PRODUCT SALES 260,180 241,260 18,920 8% 482,520 MISC & INTERDEPT REVENUE 33,591 34,063 (472) (1%) 68,125 TOTAL OPERATING REVENUES 5,236,529 4,505,475 731,054 16% 8,961,751

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 1,595,412 1,569,267 26,146 2% 3,138,533 SUPPLIES 179,804 148,275 31,530 21% 296,550 OUTSIDE SERVICES 965,137 1,062,648 (97,511) (9%) 2,004,968 PUBLIC INFORMATION 44,265 23,044 21,221 92% 46,088 MARKETING 25,313 84,250 (58,937) (70%) 168,500 COMMUNITY RELATIONS 1,553 2,650 (1,097) (41%) 5,300 ADS, DUES & PUBLICATIONS 31,044 21,580 9,465 44% 43,159 TRAVEL MEETINGS 20,306 34,200 (13,894) (41%) 68,400 TRAVEL/TRAINING 22,795 37,883 (15,088) (40%) 75,767 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 8,451 10,900 (2,449) (22%) 21,800 RENT, UTILITIES, INSURANCE, TAXES 533,807 416,677 117,130 28% 833,331 UTILITY (Pass Thru) & COST OF GOODS SOLD 212,475 198,075 14,401 7% 396,149 OTHER EXPENSES (Misc & Interdept) 40,934 17,575 23,359 133% 35,100 CONTINGENCY 0 62,500 (62,500) (100%) 125,000 MAINTENANCE LABOR & BENEFITS 414,185 406,186 7,999 2% 812,372 MAINTENANCE (Materials & Services) 229,701 195,187 34,514 18% 390,375 TOTAL OPERATING EXPENSES 4,325,182 4,290,896 34,286 1% 8,461,392

OPERATING SURPLUS (DEFICIT) (before Depr) 911,347 214,579 696,768 325% 500,359

ALLOCATED EXPENSES 0 0 0 (100%) 0 DEPRECIATION (includes donated assets) 1,196,171 1,206,258 (10,087) (1%) 2,412,516

OPERATING SURPLUS (DEFICIT) (after Depr & Alloc) (284,824) (991,679) 706,855 (71%) (1,912,157)

NON-OP GENERAL REVENUES

INTEREST EARNINGS 144,519 58,500 86,019 147% 117,000 OTHER TAX RECEIPTS 46,183 76,000 (29,817) (39%) 152,000 MISC NON OP REVENUES 19,431 10,000 9,431 94% 20,000 GRANTS - OPERATIONS 2,408 19,875 (17,467) (88%) 39,750 PASSENGER FACILITY CHARGES (PFC'S) 637 6,000 (5,363) (89%) 12,000 GAIN (LOSS) & SPECIAL ITEMS 34,054 0 34,054 0% 0 TOTAL NON-OP GENERAL REV 247,231 170,375 76,856 45% 340,750

NON-OP GENERAL EXPENSES

ENVIRONMENTAL 127,806 162,500 (34,694) (21%) 325,000

Report: Bud v Act Sum Printed Page 1 on: 8/9/2017 12:24 PM Row: Inc Stmt Acct Sum with Salaries Condensed Column: 126 ACTUAL TO BUDGET Port of Port Angeles Summary of All Units Account Summary: Budget to Actual Variance For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET MISC NON OP EXPENSE 8,058 37,500 (29,442) (79%) 75,000 TOTAL NON-OP GENERAL EXP 135,864 200,000 (64,136) (32%) 400,000

NET NON-OP GENERAL SURPLUS (DEFICIT) 111,367 (29,625) 140,992 (476%) (59,250)

NON-OP CAPITAL REVENUES

PROPERTY TAX RECEIPTS 735,485 735,500 (15) 0% 1,471,000 GRANTS - CAPITAL 316,157 272,500 43,657 16% 771,910 TOTAL NON-OP CAPITAL REV 1,051,642 1,008,000 43,642 4% 2,242,910

NON-OP CAPITAL EXPENSES

BOND COSTS & INTEREST EXPENSE 143,223 140,652 2,571 2% 281,304 TOTAL NON-OP CAPITAL EXP 143,223 140,652 2,571 2% 281,304

NET NON-OP CAPITAL SURPLUS (DEFICIT) 908,420 867,348 41,072 5% 1,961,606

NET NON-OP SURPLUS (DEFICIT) 1,019,786 837,723 182,063 22% 1,902,356

TOTAL NET SURPLUS (DEFICIT) (before Depr) 1,931,133 1,052,302 878,831 84% 2,402,715

TOTAL NET SURPLUS (DEFICIT) (after Depr & Alloc) 734,962 (153,956) 888,918 (577%) (9,801)

Report: Bud v Act Sum Printed Page 2 on: 8/9/2017 12:24 PM Row: Inc Stmt Acct Sum with Salaries Condensed Column: 127 ACTUAL TO BUDGET Port of Port Angeles MARINE TERMINAL Account Summary: Budget to Actual Variance For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

DOCKAGE 647,479 535,590 111,889 21% 1,071,180 WHARFAGE 523,245 388,800 134,445 35% 777,600 SERVICE & FACILITIES 316,854 235,440 81,414 35% 470,880 MT HANDLING 0 1,250 (1,250) (100%) 2,500 LABOR SERVICES / SECURITY FEE 85,428 77,868 7,560 10% 155,736 OTHER USER FEES 1,465 500 965 193% 1,000 EQUIPMENT RENTAL 4,990 7,500 (2,511) (33%) 15,000 LAND LEASE/RENT 35,757 10,521 25,236 240% 21,042 STRUCTURE LEASE/RENT 95,862 111,273 (15,411) (14%) 222,547 USE AGMT AND OTHER RENT 5,422 2,400 3,022 126% 4,800 UTILITY PASS THRU & PRODUCT SALES 26,437 40,000 (13,563) (34%) 80,000 MISC & INTERDEPT REVENUE 1,601 500 1,101 220% 1,000 TOTAL OPERATING REVENUES 1,744,539 1,411,642 332,897 24% 2,823,285

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 140,851 143,801 (2,950) (2%) 287,602 SUPPLIES 4,431 5,000 (569) (11%) 10,000 OUTSIDE SERVICES 64,229 37,500 26,729 71% 75,000 PUBLIC INFORMATION 195 500 (305) (61%) 1,000 ADS, DUES & PUBLICATIONS 1,800 1,250 550 44% 2,500 TRAVEL MEETINGS 1,028 1,500 (472) (31%) 3,000 TRAVEL/TRAINING 740 1,250 (510) (41%) 2,500 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 4,255 1,000 3,255 325% 2,000 RENT, UTILITIES, INSURANCE, TAXES 53,306 46,544 6,762 15% 93,080 UTILITY (Pass Thru) & COST OF GOODS SOLD 22,073 35,000 (12,927) (37%) 70,000 OTHER EXPENSES (Misc & Interdept) 1,541 1,500 41 3% 3,000 MAINTENANCE LABOR & BENEFITS 37,916 57,730 (19,814) (34%) 115,459 MAINTENANCE (Materials & Services) 5,440 14,650 (9,210) (63%) 29,300 TOTAL OPERATING EXPENSES 337,805 347,225 (9,420) (3%) 694,441

OPERATING SURPLUS (DEFICIT) (before Depr) 1,406,734 1,064,418 342,316 32% 2,128,844

ALLOCATED EXPENSES 0 198,444 (198,444) (100%) 396,888 DEPRECIATION (includes donated assets) 173,443 185,584 (12,141) (7%) 371,168

OPERATING SURPLUS (DEFICIT) (after Depr & Alloc) 1,233,291 680,390 552,901 81% 1,360,788

NON-OP GENERAL REVENUES

GRANTS - OPERATIONS 250 0 250 0% 0 TOTAL NON-OP GENERAL REV 250 0 250 0% 0

NET NON-OP GENERAL SURPLUS (DEFICIT) 250 0 250 0% 0

NON-OP CAPITAL REVENUES

GRANTS - CAPITAL 283,038 225,000 58,038 26% 225,000 TOTAL NON-OP CAPITAL REV 283,038 225,000 58,038 26% 225,000

NET NON-OP CAPITAL SURPLUS (DEFICIT) 283,038 225,000 58,038 26% 225,000

NET NON-OP SURPLUS (DEFICIT) 283,288 225,000 58,288 26% 225,000

TOTAL NET SURPLUS (DEFICIT) (before Depr) 1,690,023 1,289,418 400,605 31% 2,353,844

TOTAL NET SURPLUS (DEFICIT) (after Depr & Alloc) 1,516,579 905,390 611,189 68% 1,585,788

Report: Bud v Act Sum Printed Page 3 on: 8/9/2017 12:24 PM Row: Inc Stmt Acct Sum with Salaries Condensed Column: 128 ACTUAL TO BUDGET Port of Port Angeles MARINE TRADES AREA Account Summary: Budget to Actual Variance For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

MARINA & YARD FEES 95,636 83,500 12,136 15% 167,000 OTHER USER FEES 500 5,000 (4,500) (90%) 10,000 EQUIPMENT RENTAL 60,772 50,000 10,772 22% 100,000 LAND LEASE/RENT 40,775 40,775 0 0% 81,550 STRUCTURE LEASE/RENT 33,789 32,005 1,784 6% 64,009 USE AGMT AND OTHER RENT 13,953 18,000 (4,047) (22%) 36,000 UTILITY PASS THRU & PRODUCT SALES 551 500 51 10% 1,000 MISC & INTERDEPT REVENUE 397 250 147 59% 500 TOTAL OPERATING REVENUES 246,373 230,030 16,343 7% 460,059

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 45,906 54,139 (8,233) (15%) 108,278 SUPPLIES 1,409 5,000 (3,591) (72%) 10,000 OUTSIDE SERVICES 61,304 38,300 23,005 60% 76,600 MARKETING 1,300 2,500 (1,200) (48%) 5,000 ADS, DUES & PUBLICATIONS 0 300 (300) (100%) 600 TRAVEL MEETINGS 0 750 (750) (100%) 1,500 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 119 500 (381) (76%) 1,000 RENT, UTILITIES, INSURANCE, TAXES 25,392 13,958 11,433 82% 27,917 UTILITY (Pass Thru) & COST OF GOODS SOLD 0 1,100 (1,100) (100%) 2,200 OTHER EXPENSES (Misc & Interdept) 664 500 164 33% 1,000 MAINTENANCE LABOR & BENEFITS 21,404 24,803 (3,399) (14%) 49,606 MAINTENANCE (Materials & Services) 5,236 9,000 (3,764) (42%) 18,000 TOTAL OPERATING EXPENSES 162,734 150,850 11,884 8% 301,701

OPERATING SURPLUS (DEFICIT) (before Depr) 83,638 79,179 4,459 6% 158,358

ALLOCATED EXPENSES 0 95,180 (95,180) (100%) 190,360 DEPRECIATION (includes donated assets) 31,913 32,340 (427) (1%) 64,680

OPERATING SURPLUS (DEFICIT) (after Depr & Alloc) 51,725 (48,341) 100,066 (207%) (96,682) NET NON-OP SURPLUS (DEFICIT) 0 0 0 0% 0

TOTAL NET SURPLUS (DEFICIT) (before Depr) 83,638 79,179 4,459 6% 158,358

TOTAL NET SURPLUS (DEFICIT) (after Depr & Alloc) 51,725 (48,341) 100,066 (207%) (96,682)

Report: Bud v Act Sum Printed Page 5 on: 8/9/2017 12:24 PM Row: Inc Stmt Acct Sum with Salaries Condensed Column: 129 ACTUAL TO BUDGET Port of Port Angeles LOG YARD Account Summary: Budget to Actual Variance For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

LOG YARD STAGING 22,964 16,262 6,702 41% 32,524 LOG YARD LAND SERVICES 752,263 611,184 141,080 23% 1,222,367 LOG YARD WATER SERVICES 80,961 68,583 12,377 18% 137,167 OTHER USER FEES 300 0 300 0% 0 EQUIPMENT RENTAL 156,374 96,980 59,394 61% 193,960 LAND LEASE/RENT 16,319 16,046 273 2% 32,092 STRUCTURE LEASE/RENT 21,954 21,863 91 0% 43,726 UTILITY PASS THRU & PRODUCT SALES 32,319 19,400 12,919 67% 38,800 MISC & INTERDEPT REVENUE 29,998 17,463 12,536 72% 34,925 TOTAL OPERATING REVENUES 1,113,453 867,780 245,672 28% 1,735,561

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 370,070 306,806 63,264 21% 613,612 SUPPLIES 81,696 50,000 31,696 63% 100,000 OUTSIDE SERVICES 12,221 7,500 4,721 63% 15,000 PUBLIC INFORMATION 57 0 57 0% 0 MARKETING 1,125 750 375 50% 1,500 ADS, DUES & PUBLICATIONS 2,481 0 2,481 0% 0 TRAVEL MEETINGS 2,492 1,000 1,492 149% 2,000 TRAVEL/TRAINING 2,619 750 1,869 249% 1,500 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 2,255 1,900 355 19% 3,800 RENT, UTILITIES, INSURANCE, TAXES 110,891 38,809 72,082 186% 77,618 UTILITY (Pass Thru) & COST OF GOODS SOLD 30,864 20,200 10,664 53% 40,400 OTHER EXPENSES (Misc & Interdept) 12,782 3,000 9,782 326% 6,000 MAINTENANCE LABOR & BENEFITS 121,828 80,389 41,439 52% 160,778 MAINTENANCE (Materials & Services) 147,064 60,750 86,314 142% 121,500 TOTAL OPERATING EXPENSES 898,444 571,854 326,590 57% 1,143,708

OPERATING SURPLUS (DEFICIT) (before Depr) 215,009 295,927 (80,918) (27%) 591,853

ALLOCATED EXPENSES 0 350,625 (350,625) (100%) 701,251 DEPRECIATION (includes donated assets) 162,211 168,740 (6,529) (4%) 337,480

OPERATING SURPLUS (DEFICIT) (after Depr & Alloc) 52,798 (223,439) 276,237 (124%) (446,878) NET NON-OP SURPLUS (DEFICIT) 0 0 0 0% 0

TOTAL NET SURPLUS (DEFICIT) (before Depr) 215,009 295,927 (80,918) (27%) 591,853

TOTAL NET SURPLUS (DEFICIT) (after Depr & Alloc) 52,798 (223,439) 276,237 (124%) (446,878)

Report: Bud v Act Sum Printed Page 6 on: 8/9/2017 12:24 PM Row: Inc Stmt Acct Sum with Salaries Condensed Column: 130 ACTUAL TO BUDGET Port of Port Angeles AIRPORTS (31, 32, 33) Account Summary: Budget to Actual Variance For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

LANDING/PARKING FEES 3,540 3,550 (10) 0% 7,100 HANGAR/TIE DOWN 54,607 50,200 4,407 9% 100,400 OTHER USER FEES 3,187 2,650 537 20% 5,300 EQUIPMENT RENTAL 8,186 0 8,186 0% 0 LAND LEASE/RENT 198,255 190,720 7,536 4% 332,239 STRUCTURE LEASE/RENT 514,079 442,052 72,027 16% 884,104 USE AGMT AND OTHER RENT 1,205 1,500 (295) (20%) 3,000 UTILITY PASS THRU & PRODUCT SALES 6,222 6,160 62 1% 12,320 MISC & INTERDEPT REVENUE (194) 3,600 (3,794) (105%) 7,200 TOTAL OPERATING REVENUES 789,086 700,432 88,654 13% 1,351,663

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 132,057 133,643 (1,585) (1%) 267,285 SUPPLIES 5,226 5,600 (374) (7%) 11,200 OUTSIDE SERVICES 44,257 95,260 (51,003) (54%) 190,520 PUBLIC INFORMATION 2,564 600 1,964 327% 1,200 MARKETING 3,129 61,000 (57,871) (95%) 122,000 COMMUNITY RELATIONS 0 150 (150) (100%) 300 ADS, DUES & PUBLICATIONS 1,400 125 1,275 1020% 250 TRAVEL MEETINGS 5,535 200 5,335 2668% 400 TRAVEL/TRAINING 1,184 1,500 (316) (21%) 3,000 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 862 3,750 (2,888) (77%) 7,500 RENT, UTILITIES, INSURANCE, TAXES 134,064 125,221 8,843 7% 250,436 UTILITY (Pass Thru) & COST OF GOODS SOLD 5,905 4,464 1,441 32% 8,929 OTHER EXPENSES (Misc & Interdept) (12,236) 950 (13,186) (1388%) 1,850 MAINTENANCE LABOR & BENEFITS 115,223 115,676 (454) 0% 231,353 MAINTENANCE (Materials & Services) 23,816 45,275 (21,459) (47%) 90,550 TOTAL OPERATING EXPENSES 462,986 593,414 (130,428) (22%) 1,186,773

OPERATING SURPLUS (DEFICIT) (before Depr) 326,100 107,018 219,083 205% 164,890

ALLOCATED EXPENSES 0 861,152 (861,152) (100%) 1,601,976 DEPRECIATION (includes donated assets) 480,313 478,623 1,690 0% 957,246

OPERATING SURPLUS (DEFICIT) (after Depr & Alloc) (154,213) (1,232,757) 1,078,545 (87%) (2,394,332)

NON-OP CAPITAL REVENUES

GRANTS - CAPITAL 12,179 47,500 (35,321) (74%) 410,000 TOTAL NON-OP CAPITAL REV 12,179 47,500 (35,321) (74%) 410,000

NET NON-OP CAPITAL SURPLUS (DEFICIT) 12,179 47,500 (35,321) (74%) 410,000

NET NON-OP SURPLUS (DEFICIT) 12,179 47,500 (35,321) (74%) 410,000

TOTAL NET SURPLUS (DEFICIT) (before Depr) 338,279 154,518 183,761 119% 574,890

TOTAL NET SURPLUS (DEFICIT) (after Depr & Alloc) (142,034) (1,185,257) 1,043,223 (88%) (1,984,332)

Report: Bud v Act Sum Printed Page 7 on: 8/9/2017 12:24 PM Row: Inc Stmt Acct Sum with Salaries Condensed Column: 131 ACTUAL TO BUDGET Port of Port Angeles FAIRCHILD AIRPORT Account Summary: Budget to Actual Variance For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

LANDING/PARKING FEES 3,540 3,550 (10) 0% 7,100 HANGAR/TIE DOWN 46,709 43,050 3,659 8% 86,100 OTHER USER FEES 3,187 2,650 537 20% 5,300 LAND LEASE/RENT 21,855 21,747 108 0% 43,494 STRUCTURE LEASE/RENT 38,136 38,346 (210) (1%) 76,692 UTILITY PASS THRU & PRODUCT SALES 5,400 5,350 50 1% 10,700 MISC & INTERDEPT REVENUE 63 100 (37) (37%) 200 TOTAL OPERATING REVENUES 118,890 114,793 4,097 4% 229,586

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 91,804 90,686 1,119 1% 181,371 SUPPLIES 4,784 5,000 (216) (4%) 10,000 OUTSIDE SERVICES 16,444 13,100 3,344 26% 26,200 PUBLIC INFORMATION 2,564 500 2,064 413% 1,000 MARKETING 644 55,000 (54,356) (99%) 110,000 COMMUNITY RELATIONS 0 150 (150) (100%) 300 ADS, DUES & PUBLICATIONS 1,283 125 1,158 926% 250 TRAVEL MEETINGS 3,076 200 2,876 1438% 400 TRAVEL/TRAINING 1,184 1,500 (316) (21%) 3,000 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 491 0 491 0% 0 RENT, UTILITIES, INSURANCE, TAXES 86,666 81,363 5,303 7% 162,721 UTILITY (Pass Thru) & COST OF GOODS SOLD 5,383 3,954 1,429 36% 7,909 OTHER EXPENSES (Misc & Interdept) (12,236) 750 (12,986) (1731%) 1,500 MAINTENANCE LABOR & BENEFITS 80,458 76,547 3,910 5% 153,095 MAINTENANCE (Materials & Services) 13,275 12,400 875 7% 24,800 TOTAL OPERATING EXPENSES 295,821 341,275 (45,454) (13%) 682,546

OPERATING SURPLUS (DEFICIT) (before Depr) (176,931) (226,482) 49,552 (22%) (452,960)

ALLOCATED EXPENSES 0 194,154 (194,154) (100%) 388,308 DEPRECIATION (includes donated assets) 245,655 245,157 498 0% 490,314

OPERATING SURPLUS (DEFICIT) (after Depr & Alloc) (422,586) (665,793) 243,207 (37%) (1,331,582)

NON-OP CAPITAL REVENUES

GRANTS - CAPITAL 12,179 47,500 (35,321) (74%) 410,000 TOTAL NON-OP CAPITAL REV 12,179 47,500 (35,321) (74%) 410,000

NET NON-OP CAPITAL SURPLUS (DEFICIT) 12,179 47,500 (35,321) (74%) 410,000

NET NON-OP SURPLUS (DEFICIT) 12,179 47,500 (35,321) (74%) 410,000

TOTAL NET SURPLUS (DEFICIT) (before Depr) (164,752) (178,982) 14,230 (8%) (42,960)

TOTAL NET SURPLUS (DEFICIT) (after Depr & Alloc) (410,408) (618,293) 207,886 (34%) (921,582)

Report: Bud v Act Sum Printed Page 9 on: 8/9/2017 12:24 PM Row: Inc Stmt Acct Sum with Salaries Condensed Column: 132 ACTUAL TO BUDGET Port of Port Angeles FIA NON AERONAUTICAL Account Summary: Budget to Actual Variance For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

EQUIPMENT RENTAL 8,186 0 8,186 0% 0 LAND LEASE/RENT 176,400 168,973 7,428 4% 288,745 STRUCTURE LEASE/RENT 475,943 403,706 72,237 18% 807,412 USE AGMT AND OTHER RENT 1,205 1,500 (295) (20%) 3,000 UTILITY PASS THRU & PRODUCT SALES 522 510 12 2% 1,020 MISC & INTERDEPT REVENUE (257) 3,500 (3,757) (107%) 7,000 TOTAL OPERATING REVENUES 661,998 578,189 83,810 14% 1,107,177

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 37,683 39,600 (1,916) (5%) 79,199 SUPPLIES 442 500 (58) (12%) 1,000 OUTSIDE SERVICES 26,013 79,500 (53,487) (67%) 159,000 PUBLIC INFORMATION 0 100 (100) (100%) 200 MARKETING 2,485 6,000 (3,515) (59%) 12,000 ADS, DUES & PUBLICATIONS 118 0 118 0% 0 TRAVEL MEETINGS 2,459 0 2,459 0% 0 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 371 3,750 (3,379) (90%) 7,500 RENT, UTILITIES, INSURANCE, TAXES 43,512 40,390 3,122 8% 80,779 UTILITY (Pass Thru) & COST OF GOODS SOLD 522 510 12 2% 1,020 OTHER EXPENSES (Misc & Interdept) 0 150 (150) (100%) 250 MAINTENANCE LABOR & BENEFITS 31,911 36,135 (4,224) (12%) 72,271 MAINTENANCE (Materials & Services) 10,515 30,000 (19,485) (65%) 60,000 TOTAL OPERATING EXPENSES 156,031 236,635 (80,604) (34%) 473,219

OPERATING SURPLUS (DEFICIT) (before Depr) 505,968 341,554 164,414 48% 633,958

ALLOCATED EXPENSES 0 658,074 (658,074) (100%) 1,195,820 DEPRECIATION (includes donated assets) 232,808 231,617 1,192 1% 463,233

OPERATING SURPLUS (DEFICIT) (after Depr & Alloc) 273,159 (548,137) 821,296 (150%) (1,025,095) NET NON-OP SURPLUS (DEFICIT) 0 0 0 0% 0

TOTAL NET SURPLUS (DEFICIT) (before Depr) 505,968 341,554 164,414 48% 633,958

TOTAL NET SURPLUS (DEFICIT) (after Depr & Alloc) 273,159 (548,137) 821,296 (150%) (1,025,095)

Report: Bud v Act Sum Printed Page 11 on: 8/9/2017 12:24 PM Row: Inc Stmt Acct Sum with Salaries Condensed Column: 133 ACTUAL TO BUDGET Port of Port Angeles SEKIU AIRPORT Account Summary: Budget to Actual Variance For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

HANGAR/TIE DOWN 7,898 7,150 747 10% 14,300 UTILITY PASS THRU & PRODUCT SALES 300 300 0 0% 600 TOTAL OPERATING REVENUES 8,198 7,450 747 10% 14,900

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 2,570 3,358 (788) (23%) 6,715 SUPPLIES 0 100 (100) (100%) 200 OUTSIDE SERVICES 1,800 2,660 (860) (32%) 5,320 RENT, UTILITIES, INSURANCE, TAXES 3,886 3,468 418 12% 6,936 OTHER EXPENSES (Misc & Interdept) 0 50 (50) (100%) 100 MAINTENANCE LABOR & BENEFITS 2,854 2,994 (140) (5%) 5,987 MAINTENANCE (Materials & Services) 25 2,875 (2,850) (99%) 5,750 TOTAL OPERATING EXPENSES 11,134 15,504 (4,370) (28%) 31,008

OPERATING SURPLUS (DEFICIT) (before Depr) (2,937) (8,054) 5,117 (64%) (16,108)

ALLOCATED EXPENSES 0 8,924 (8,924) (100%) 17,848 DEPRECIATION (includes donated assets) 1,849 1,850 0 0% 3,699

OPERATING SURPLUS (DEFICIT) (after Depr & Alloc) (4,786) (18,827) 14,042 (75%) (37,655) NET NON-OP SURPLUS (DEFICIT) 0 0 0 0% 0

TOTAL NET SURPLUS (DEFICIT) (before Depr) (2,937) (8,054) 5,117 (64%) (16,108)

TOTAL NET SURPLUS (DEFICIT) (after Depr & Alloc) (4,786) (18,827) 14,042 (75%) (37,655)

Report: Bud v Act Sum Printed Page 12 on: 8/9/2017 12:24 PM Row: Inc Stmt Acct Sum with Salaries Condensed Column: 134 ACTUAL TO BUDGET Port of Port Angeles MARINAS (41 - 51) Account Summary: Budget to Actual Variance For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

WHARFAGE 1,241 9,750 (8,509) (87%) 19,500 LABOR SERVICES / SECURITY FEE 4,322 800 3,522 440% 1,600 MOORAGE 1,001,820 958,950 42,870 4% 1,917,900 MARINA & YARD FEES 46,054 52,800 (6,746) (13%) 105,600 OTHER USER FEES 6,001 0 6,001 0% 0 EQUIPMENT RENTAL 625 5,650 (5,025) (89%) 11,300 LAND LEASE/RENT 12,694 6,675 6,019 90% 13,351 STRUCTURE LEASE/RENT 33,377 40,554 (7,177) (18%) 81,107 UTILITY PASS THRU & PRODUCT SALES 193,481 174,200 19,281 11% 348,400 MISC & INTERDEPT REVENUE 1,789 12,250 (10,461) (85%) 24,500 TOTAL OPERATING REVENUES 1,301,404 1,261,629 39,775 3% 2,523,258

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 225,071 202,931 22,140 11% 405,862 SUPPLIES 18,974 14,450 4,524 31% 28,900 OUTSIDE SERVICES 147,521 143,800 3,721 3% 287,600 PUBLIC INFORMATION 0 5,000 (5,000) (100%) 10,000 MARKETING 219 5,000 (4,781) (96%) 10,000 COMMUNITY RELATIONS 276 0 276 0% 0 ADS, DUES & PUBLICATIONS 2,050 1,400 650 46% 2,800 TRAVEL MEETINGS 70 500 (430) (86%) 1,000 TRAVEL/TRAINING 1,500 1,000 500 50% 2,000 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 42 0 42 0% 0 RENT, UTILITIES, INSURANCE, TAXES 101,366 91,735 9,631 10% 183,460 UTILITY (Pass Thru) & COST OF GOODS SOLD 153,633 136,500 17,132 13% 273,000 OTHER EXPENSES (Misc & Interdept) 8,969 4,000 4,969 124% 8,000 MAINTENANCE LABOR & BENEFITS 48,241 52,600 (4,359) (8%) 105,200 MAINTENANCE (Materials & Services) 22,128 39,300 (17,172) (44%) 78,600 TOTAL OPERATING EXPENSES 730,060 698,216 31,844 5% 1,396,422

OPERATING SURPLUS (DEFICIT) (before Depr) 571,343 563,413 7,931 1% 1,126,836

ALLOCATED EXPENSES 0 357,019 (357,019) (100%) 714,037 DEPRECIATION (includes donated assets) 299,629 297,600 2,029 1% 595,200

OPERATING SURPLUS (DEFICIT) (after Depr & Alloc) 271,714 (91,206) 362,920 (398%) (182,401)

NON-OP GENERAL REVENUES

GRANTS - OPERATIONS 2,158 0 2,158 0% 0 TOTAL NON-OP GENERAL REV 2,158 0 2,158 0% 0

NET NON-OP GENERAL SURPLUS (DEFICIT) 2,158 0 2,158 0% 0

NON-OP CAPITAL REVENUES

GRANTS - CAPITAL 17,003 0 17,003 0% 136,910 TOTAL NON-OP CAPITAL REV 17,003 0 17,003 0% 136,910

NET NON-OP CAPITAL SURPLUS (DEFICIT) 17,003 0 17,003 0% 136,910

NET NON-OP SURPLUS (DEFICIT) 19,160 0 19,160 0% 136,910

TOTAL NET SURPLUS (DEFICIT) (before Depr) 590,504 563,413 27,091 5% 1,263,746

TOTAL NET SURPLUS (DEFICIT) (after Depr & Alloc) 290,874 (91,206) 382,080 (419%) (45,491)

Report: Bud v Act Sum Printed Page 13 on: 8/9/2017 12:24 PM Row: Inc Stmt Acct Sum with Salaries Condensed Column: 135 ACTUAL TO BUDGET Port of Port Angeles PA BOAT HAVEN (PABH) Account Summary: Budget to Actual Variance For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

WHARFAGE 1,034 9,450 (8,416) (89%) 18,900 LABOR SERVICES / SECURITY FEE 4,322 800 3,522 440% 1,600 MOORAGE 561,578 525,450 36,128 7% 1,050,900 MARINA & YARD FEES 20,398 24,550 (4,152) (17%) 49,100 OTHER USER FEES 5,751 0 5,751 0% 0 EQUIPMENT RENTAL 625 5,650 (5,025) (89%) 11,300 LAND LEASE/RENT 12,694 6,675 6,019 90% 13,351 STRUCTURE LEASE/RENT 4,853 13,953 (9,100) (65%) 27,906 UTILITY PASS THRU & PRODUCT SALES 78,624 74,200 4,424 6% 148,400 MISC & INTERDEPT REVENUE 538 11,050 (10,512) (95%) 22,100 TOTAL OPERATING REVENUES 690,417 671,778 18,639 3% 1,343,557

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 38,897 34,285 4,612 13% 68,570 SUPPLIES 10,216 7,750 2,466 32% 15,500 OUTSIDE SERVICES 139,925 136,000 3,925 3% 272,000 PUBLIC INFORMATION 0 2,500 (2,500) (100%) 5,000 MARKETING 219 2,500 (2,281) (91%) 5,000 COMMUNITY RELATIONS 276 0 276 0% 0 ADS, DUES & PUBLICATIONS 1,190 1,000 190 19% 2,000 TRAVEL MEETINGS 14 250 (236) (94%) 500 TRAVEL/TRAINING 1,500 500 1,000 200% 1,000 RENT, UTILITIES, INSURANCE, TAXES 55,134 54,954 180 0% 109,898 UTILITY (Pass Thru) & COST OF GOODS SOLD 62,318 43,450 18,868 43% 86,900 OTHER EXPENSES (Misc & Interdept) 798 0 798 0% 0 MAINTENANCE LABOR & BENEFITS 24,581 29,935 (5,354) (18%) 59,870 MAINTENANCE (Materials & Services) 6,396 23,500 (17,104) (73%) 47,000 TOTAL OPERATING EXPENSES 341,463 336,624 4,838 1% 673,238

OPERATING SURPLUS (DEFICIT) (before Depr) 348,955 335,154 13,800 4% 670,319

ALLOCATED EXPENSES 0 186,336 (186,336) (100%) 372,671 DEPRECIATION (includes donated assets) 190,819 189,825 994 1% 379,649

OPERATING SURPLUS (DEFICIT) (after Depr & Alloc) 158,136 (41,006) 199,142 (486%) (82,001)

NON-OP GENERAL REVENUES

GRANTS - OPERATIONS 2,158 0 2,158 0% 0 TOTAL NON-OP GENERAL REV 2,158 0 2,158 0% 0

NET NON-OP GENERAL SURPLUS (DEFICIT) 2,158 0 2,158 0% 0

NON-OP CAPITAL REVENUES

GRANTS - CAPITAL 0 0 0 0% 136,910 TOTAL NON-OP CAPITAL REV 0 0 0 0% 136,910

NET NON-OP CAPITAL SURPLUS (DEFICIT) 0 0 0 0% 136,910

NET NON-OP SURPLUS (DEFICIT) 2,158 0 2,158 0% 136,910

TOTAL NET SURPLUS (DEFICIT) (before Depr) 351,112 335,154 15,958 5% 807,229

TOTAL NET SURPLUS (DEFICIT) (after Depr & Alloc) 160,294 (41,006) 201,300 (491%) 54,909

Report: Bud v Act Sum Printed Page 15 on: 8/9/2017 12:24 PM Row: Inc Stmt Acct Sum with Salaries Condensed Column: 136 ACTUAL TO BUDGET Port of Port Angeles JOHN WAYNE MARINA (JWM) Account Summary: Budget to Actual Variance For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

WHARFAGE 207 300 (93) (31%) 600 MOORAGE 440,242 433,500 6,742 2% 867,000 MARINA & YARD FEES 25,656 28,250 (2,594) (9%) 56,500 OTHER USER FEES 250 0 250 0% 0 STRUCTURE LEASE/RENT 28,524 26,601 1,923 7% 53,201 UTILITY PASS THRU & PRODUCT SALES 114,856 100,000 14,856 15% 200,000 MISC & INTERDEPT REVENUE 1,251 1,200 51 4% 2,400 TOTAL OPERATING REVENUES 610,986 589,850 21,136 4% 1,179,701

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 186,174 168,646 17,528 10% 337,292 SUPPLIES 8,758 6,700 2,058 31% 13,400 OUTSIDE SERVICES 7,597 7,800 (203) (3%) 15,600 PUBLIC INFORMATION 0 2,500 (2,500) (100%) 5,000 MARKETING 0 2,500 (2,500) (100%) 5,000 ADS, DUES & PUBLICATIONS 860 400 460 115% 800 TRAVEL MEETINGS 56 250 (194) (77%) 500 TRAVEL/TRAINING 0 500 (500) (100%) 1,000 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 42 0 42 0% 0 RENT, UTILITIES, INSURANCE, TAXES 46,232 36,781 9,451 26% 73,562 UTILITY (Pass Thru) & COST OF GOODS SOLD 91,315 93,050 (1,735) (2%) 186,100 OTHER EXPENSES (Misc & Interdept) 8,171 4,000 4,171 104% 8,000 MAINTENANCE LABOR & BENEFITS 23,660 22,665 995 4% 45,330 MAINTENANCE (Materials & Services) 15,732 15,800 (68) 0% 31,600 TOTAL OPERATING EXPENSES 388,598 361,592 27,006 7% 723,184

OPERATING SURPLUS (DEFICIT) (before Depr) 222,389 228,258 (5,870) (3%) 456,517

ALLOCATED EXPENSES 0 170,683 (170,683) (100%) 341,366 DEPRECIATION (includes donated assets) 108,811 107,775 1,035 1% 215,551

OPERATING SURPLUS (DEFICIT) (after Depr & Alloc) 113,578 (50,200) 163,778 (326%) (100,400)

NON-OP CAPITAL REVENUES

GRANTS - CAPITAL 17,003 0 17,003 0% 0 TOTAL NON-OP CAPITAL REV 17,003 0 17,003 0% 0

NET NON-OP CAPITAL SURPLUS (DEFICIT) 17,003 0 17,003 0% 0

NET NON-OP SURPLUS (DEFICIT) 17,003 0 17,003 0% 0

TOTAL NET SURPLUS (DEFICIT) (before Depr) 239,391 228,258 11,133 5% 456,517

TOTAL NET SURPLUS (DEFICIT) (after Depr & Alloc) 130,581 (50,200) 180,781 (360%) (100,400)

Report: Bud v Act Sum Printed Page 17 on: 8/9/2017 12:24 PM Row: Inc Stmt Acct Sum with Salaries Condensed Column: 137 ACTUAL TO BUDGET Port of Port Angeles RENTAL PROPERTY Account Summary: Budget to Actual Variance For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

LAND LEASE/RENT 30,348 22,755 7,593 33% 45,509 STRUCTURE LEASE/RENT 10,158 10,158 0 0% 20,316 USE AGMT AND OTHER RENT 0 50 (50) (100%) 100 UTILITY PASS THRU & PRODUCT SALES 1,170 1,000 170 17% 2,000 TOTAL OPERATING REVENUES 41,676 33,963 7,713 23% 67,925

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 54,475 18,624 35,851 193% 37,247 SUPPLIES 333 600 (267) (45%) 1,200 OUTSIDE SERVICES 8,996 4,000 4,996 125% 8,000 PUBLIC INFORMATION 0 500 (500) (100%) 1,000 MARKETING 496 5,000 (4,504) (90%) 10,000 ADS, DUES & PUBLICATIONS 2,165 105 2,060 1962% 210 RENT, UTILITIES, INSURANCE, TAXES 15,313 11,703 3,611 31% 23,405 UTILITY (Pass Thru) & COST OF GOODS SOLD 0 810 (810) (100%) 1,620 MAINTENANCE LABOR & BENEFITS 2,803 15,822 (13,020) (82%) 31,645 MAINTENANCE (Materials & Services) 251 7,250 (6,999) (97%) 14,500 TOTAL OPERATING EXPENSES 84,832 64,413 20,418 32% 128,827

OPERATING SURPLUS (DEFICIT) (before Depr) (43,156) (30,451) (12,706) 42% (60,902)

ALLOCATED EXPENSES 0 43,604 (43,604) (100%) 87,208 DEPRECIATION (includes donated assets) 2,271 2,271 0 0% 4,542

OPERATING SURPLUS (DEFICIT) (after Depr & Alloc) (45,427) (76,326) 30,899 (40%) (152,652) NET NON-OP SURPLUS (DEFICIT) 0 0 0 0% 0

TOTAL NET SURPLUS (DEFICIT) (before Depr) (43,156) (30,451) (12,706) 42% (60,902)

TOTAL NET SURPLUS (DEFICIT) (after Depr & Alloc) (45,427) (76,326) 30,899 (40%) (152,652)

Report: Bud v Act Sum Printed Page 21 on: 8/9/2017 12:24 PM Row: Inc Stmt Acct Sum with Salaries Condensed Column: 138 ACTUAL TO BUDGET Port of Port Angeles MECHANICAL MAINTENANCE Account Summary: Budget to Actual Variance For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 22,977 16,409 6,568 40% 32,818 SUPPLIES 18,528 11,000 7,528 68% 22,000 OUTSIDE SERVICES 8,649 5,050 3,599 71% 10,100 TRAVEL/TRAINING 166 1,600 (1,434) (90%) 3,200 RENT, UTILITIES, INSURANCE, TAXES 11,278 9,816 1,462 15% 19,632 OTHER EXPENSES (Misc & Interdept) 145 125 20 16% 250 MAINTENANCE LABOR & BENEFITS 19,209 25,568 (6,359) (25%) 51,136 MAINTENANCE (Materials & Services) 5,131 2,000 3,131 157% 4,000 TOTAL OPERATING EXPENSES 86,084 71,568 14,516 20% 143,136

OPERATING SURPLUS (DEFICIT) (before Depr) (86,084) (71,568) (14,516) 20% (143,136)

ALLOCATED EXPENSES 0 (79,008) 79,008 (100%) (158,016) DEPRECIATION (includes donated assets) 13,499 7,440 6,059 81% 14,880

OPERATING SURPLUS (DEFICIT) (after Depr & Alloc) (99,583) 0 (99,583) (165972000%) 0 NET NON-OP SURPLUS (DEFICIT) 0 0 0 0% 0

TOTAL NET SURPLUS (DEFICIT) (before Depr) (86,084) (71,568) (14,516) 20% (143,136)

TOTAL NET SURPLUS (DEFICIT) (after Depr & Alloc) (99,583) 0 (99,583) (165972000%) 0

Report: Bud v Act Sum Printed Page 23 on: 8/9/2017 12:24 PM Row: Inc Stmt Acct Sum with Salaries Condensed Column: 139 ACTUAL TO BUDGET Port of Port Angeles FACILITIES MAINTENANCE Account Summary: Budget to Actual Variance For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 35,773 24,828 10,945 44% 49,656 SUPPLIES 14,205 19,000 (4,795) (25%) 38,000 OUTSIDE SERVICES 6,326 3,500 2,826 81% 7,000 PUBLIC INFORMATION 137 0 137 0% 0 ADS, DUES & PUBLICATIONS 215 1,000 (785) (79%) 2,000 TRAVEL MEETINGS 152 250 (98) (39%) 500 TRAVEL/TRAINING 1,640 6,000 (4,360) (73%) 12,000 RENT, UTILITIES, INSURANCE, TAXES 12,916 10,158 2,758 27% 20,317 OTHER EXPENSES (Misc & Interdept) 2,665 2,500 165 7% 5,000 MAINTENANCE LABOR & BENEFITS 37,142 17,775 19,367 109% 35,550 MAINTENANCE (Materials & Services) 15,344 13,563 1,782 13% 27,125 TOTAL OPERATING EXPENSES 126,516 98,574 27,942 28% 197,148

OPERATING SURPLUS (DEFICIT) (before Depr) (126,516) (98,574) (27,942) 28% (197,148)

ALLOCATED EXPENSES 0 (114,726) 114,726 (100%) (229,452) DEPRECIATION (includes donated assets) 17,488 16,152 1,336 8% 32,304

OPERATING SURPLUS (DEFICIT) (after Depr & Alloc) (144,004) 0 (144,004) 80001989% 0 NET NON-OP SURPLUS (DEFICIT) 0 0 0 0% 0

TOTAL NET SURPLUS (DEFICIT) (before Depr) (126,516) (98,574) (27,942) 28% (197,148)

TOTAL NET SURPLUS (DEFICIT) (after Depr & Alloc) (144,004) 0 (144,004) 80001989% 0

Report: Bud v Act Sum Printed Page 24 on: 8/9/2017 12:24 PM Row: Inc Stmt Acct Sum with Salaries Condensed Column: 140 ACTUAL TO BUDGET Port of Port Angeles A&G (80, 81) Account Summary: Budget to Actual Variance For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 568,231 668,087 (99,855) (15%) 1,336,173 SUPPLIES 35,003 37,625 (2,622) (7%) 75,250 OUTSIDE SERVICES 611,634 727,738 (116,104) (16%) 1,335,148 PUBLIC INFORMATION 41,311 16,444 24,867 151% 32,888 MARKETING 19,044 10,000 9,044 90% 20,000 COMMUNITY RELATIONS 1,277 2,500 (1,223) (49%) 5,000 ADS, DUES & PUBLICATIONS 20,933 17,400 3,534 20% 34,799 TRAVEL MEETINGS 11,029 30,000 (18,971) (63%) 60,000 TRAVEL/TRAINING 14,945 25,783 (10,838) (42%) 51,567 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 918 3,750 (2,832) (76%) 7,500 RENT, UTILITIES, INSURANCE, TAXES 69,281 68,733 548 1% 137,466 OTHER EXPENSES (Misc & Interdept) 26,404 5,000 21,404 428% 10,000 CONTINGENCY 0 62,500 (62,500) (100%) 125,000 MAINTENANCE LABOR & BENEFITS 10,420 15,822 (5,403) (34%) 31,645 MAINTENANCE (Materials & Services) 5,291 3,400 1,891 56% 6,800 TOTAL OPERATING EXPENSES 1,435,721 1,694,782 (259,061) (15%) 3,269,236

OPERATING SURPLUS (DEFICIT) (before Depr) (1,435,721) (1,694,782) 259,061 (15%) (3,269,236)

ALLOCATED EXPENSES 0 (1,712,290) 1,712,290 (100%) (3,304,252) DEPRECIATION (includes donated assets) 15,404 17,508 (2,104) (12%) 35,016

OPERATING SURPLUS (DEFICIT) (after Depr & Alloc) (1,451,125) 0 (1,451,125) (1209271233%) 0

NON-OP GENERAL REVENUES

GRANTS - OPERATIONS 0 19,875 (19,875) (100%) 39,750 TOTAL NON-OP GENERAL REV 0 19,875 (19,875) (100%) 39,750

NET NON-OP GENERAL SURPLUS (DEFICIT) 0 19,875 (19,875) (100%) 39,750

NON-OP CAPITAL REVENUES

GRANTS - CAPITAL 3,937 0 3,937 0% 0 TOTAL NON-OP CAPITAL REV 3,937 0 3,937 0% 0

NET NON-OP CAPITAL SURPLUS (DEFICIT) 3,937 0 3,937 0% 0

NET NON-OP SURPLUS (DEFICIT) 3,937 19,875 (15,938) (80%) 39,750

TOTAL NET SURPLUS (DEFICIT) (before Depr) (1,431,784) (1,674,907) 243,123 (15%) (3,229,486)

TOTAL NET SURPLUS (DEFICIT) (after Depr & Alloc) (1,447,188) 19,875 (1,467,063) (7381%) 39,750

Report: Bud v Act Sum Printed Page 25 on: 8/9/2017 12:24 PM Row: Inc Stmt Acct Sum with Salaries Condensed Column: 141 ACTUAL TO BUDGET Port of Port Angeles ADMINISTRATIVE & GENERAL Account Summary: Budget to Actual Variance For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 543,258 617,903 (74,645) (12%) 1,235,806 SUPPLIES 35,052 37,500 (2,448) (7%) 75,000 OUTSIDE SERVICES 152,609 203,160 (50,551) (25%) 406,320 PUBLIC INFORMATION 14,515 10,250 4,265 42% 20,500 MARKETING 8,298 0 8,298 0% 0 COMMUNITY RELATIONS 1,257 0 1,257 0% 0 ADS, DUES & PUBLICATIONS 20,033 12,412 7,621 61% 24,824 TRAVEL MEETINGS 8,316 10,125 (1,809) (18%) 20,250 TRAVEL/TRAINING 11,774 24,533 (12,759) (52%) 49,067 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 389 0 389 0% 0 RENT, UTILITIES, INSURANCE, TAXES 68,853 68,463 390 1% 136,926 OTHER EXPENSES (Misc & Interdept) 2,854 5,000 (2,146) (43%) 10,000 CONTINGENCY 0 62,500 (62,500) (100%) 125,000 MAINTENANCE LABOR & BENEFITS 10,420 15,822 (5,403) (34%) 31,645 MAINTENANCE (Materials & Services) 5,291 3,400 1,891 56% 6,800 TOTAL OPERATING EXPENSES 882,920 1,071,069 (188,149) (18%) 2,142,138

OPERATING SURPLUS (DEFICIT) (before Depr) (882,920) (1,071,069) 188,149 (18%) (2,142,138)

ALLOCATED EXPENSES 0 (1,088,577) 1,088,577 (100%) (2,177,154) DEPRECIATION (includes donated assets) 15,404 17,508 (2,104) (12%) 35,016

OPERATING SURPLUS (DEFICIT) (after Depr & Alloc) (898,324) 0 (898,324) (748603167%) 0

NON-OP GENERAL REVENUES

GRANTS - OPERATIONS 0 19,875 (19,875) (100%) 39,750 TOTAL NON-OP GENERAL REV 0 19,875 (19,875) (100%) 39,750

NET NON-OP GENERAL SURPLUS (DEFICIT) 0 19,875 (19,875) (100%) 39,750

NON-OP CAPITAL REVENUES

GRANTS - CAPITAL 3,937 0 3,937 0% 0 TOTAL NON-OP CAPITAL REV 3,937 0 3,937 0% 0

NET NON-OP CAPITAL SURPLUS (DEFICIT) 3,937 0 3,937 0% 0

NET NON-OP SURPLUS (DEFICIT) 3,937 19,875 (15,938) (80%) 39,750

TOTAL NET SURPLUS (DEFICIT) (before Depr) (878,982) (1,051,194) 172,212 (16%) (2,102,388)

TOTAL NET SURPLUS (DEFICIT) (after Depr & Alloc) (894,386) 19,875 (914,261) (4600%) 39,750

Report: Bud v Act Sum Printed Page 27 on: 8/9/2017 12:24 PM Row: Inc Stmt Acct Sum with Salaries Condensed Column: 142 ACTUAL TO BUDGET Port of Port Angeles ECON DEV Account Summary: Budget to Actual Variance For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 24,973 50,184 (25,210) (50%) 100,367 SUPPLIES (49) 125 (174) (140%) 250 OUTSIDE SERVICES 459,025 524,578 (65,553) (12%) 928,828 PUBLIC INFORMATION 26,796 6,194 20,602 333% 12,388 MARKETING 10,746 10,000 746 7% 20,000 COMMUNITY RELATIONS 20 2,500 (2,480) (99%) 5,000 ADS, DUES & PUBLICATIONS 900 4,988 (4,088) (82%) 9,975 TRAVEL MEETINGS 2,713 19,875 (17,162) (86%) 39,750 TRAVEL/TRAINING 3,171 1,250 1,921 154% 2,500 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 529 3,750 (3,221) (86%) 7,500 RENT, UTILITIES, INSURANCE, TAXES 428 270 158 58% 540 OTHER EXPENSES (Misc & Interdept) 23,550 0 23,550 0% 0 TOTAL OPERATING EXPENSES 552,802 623,713 (70,911) (11%) 1,127,098

OPERATING SURPLUS (DEFICIT) (before Depr) (552,802) (623,713) 70,911 (11%) (1,127,098)

ALLOCATED EXPENSES 0 (623,713) 623,713 (100%) (1,127,098) DEPRECIATION (includes donated assets) 0 0 0 0% 0

OPERATING SURPLUS (DEFICIT) (after Depr & Alloc) (552,802) 0 (552,802) 0% 0 NET NON-OP SURPLUS (DEFICIT) 0 0 0 0% 0

TOTAL NET SURPLUS (DEFICIT) (before Depr) (552,802) (623,713) 70,911 (11%) (1,127,098)

TOTAL NET SURPLUS (DEFICIT) (after Depr & Alloc) (552,802) 0 (552,802) 0% 0

Report: Bud v Act Sum Printed Page 29 on: 8/9/2017 12:24 PM Row: Inc Stmt Acct Sum with Salaries Condensed Column: 143 ACTUAL TO BUDGET Port of Port Angeles NON OPERATING REV & EXP Account Summary: Budget to Actual Variance For the Six Months Ending Friday, June 30, 2017 June 2017 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET ALLOCATED EXPENSES 0 0 0 0% 0 DEPRECIATION (includes donated assets) 0 0 0 0% 0

NON-OP GENERAL REVENUES

INTEREST EARNINGS 144,519 58,500 86,019 147% 117,000 OTHER TAX RECEIPTS 46,183 76,000 (29,817) (39%) 152,000 MISC NON OP REVENUES 19,431 10,000 9,431 94% 20,000 PASSENGER FACILITY CHARGES (PFC'S) 637 6,000 (5,363) (89%) 12,000 GAIN (LOSS) & SPECIAL ITEMS 34,054 0 34,054 0% 0 TOTAL NON-OP GENERAL REV 244,823 150,500 94,323 63% 301,000

NON-OP GENERAL EXPENSES

ENVIRONMENTAL 127,806 162,500 (34,694) (21%) 325,000 MISC NON OP EXPENSE 8,058 37,500 (29,442) (79%) 75,000 TOTAL NON-OP GENERAL EXP 135,864 200,000 (64,136) (32%) 400,000

NET NON-OP GENERAL SURPLUS (DEFICIT) 108,959 (49,500) 158,459 (320%) (99,000)

NON-OP CAPITAL REVENUES

PROPERTY TAX RECEIPTS 735,485 735,500 (15) 0% 1,471,000 TOTAL NON-OP CAPITAL REV 735,485 735,500 (15) 0% 1,471,000

NON-OP CAPITAL EXPENSES

BOND COSTS & INTEREST EXPENSE 143,223 140,652 2,571 2% 281,304 TOTAL NON-OP CAPITAL EXP 143,223 140,652 2,571 2% 281,304

NET NON-OP CAPITAL SURPLUS (DEFICIT) 592,262 594,848 (2,586) 0% 1,189,696

NET NON-OP SURPLUS (DEFICIT) 701,221 545,348 155,873 29% 1,090,696

TOTAL NET SURPLUS (DEFICIT) (before Depr) 701,221 545,348 155,873 29% 1,090,696

TOTAL NET SURPLUS (DEFICIT) (after Depr & Alloc) 701,221 545,348 155,873 29% 1,090,696

Report: Bud v Act Sum Printed Page 30 on: 8/9/2017 12:24 PM Row: Inc Stmt Acct Sum with Salaries Condensed Column: 144 ACTUAL TO BUDGET 2nd QUARTER 2017 INVESTMENT REPORT As of June 30, 2017

Presented by John Nutter, Director of Finance & Admin

BACKGROUND:

The Port revised its Investment Policy in December 2010 by approving Resolution No. 10-987. The revised policy included specific reporting requirements. On November 13, 2012 the Commissioners revised the policy guidance to allow the purchase of securities carrying one of the three highest credit ratings instead of only the two highest ratings.

MANAGEMENT SUMMARY

The attached reports provide information to allow the Port Commissioners to ascertain whether investment activities during the reporting period have conformed to the investment policy. The Port has continued to earn an investment return that is higher than the benchmark rates. However, as investments mature or are called, the proceeds are reinvested at market rates, which are lower. Therefore, the investment returns will trend lower.

Comparison of Investment Yields to Benchmark Rates

Average Weighted Average Weighted Benchmark Benchmark Rates Maturity Yield Securities 3.23 to 3.35 years 2.134% to 1.824% 3rd/4th Quarter 2012 0.01% to 1.65% 3.51 to 3.38 years 1.833% to 1.663% 3rd/4th Quarter 2013 0.00% to 1.85% 3.88 to 3.75 years 1.550% to 1.550% 3rd/4th Quarter 2014 0.01% to 1.85% 3.07 to 4.11 years 1.422% to 1.887% 3rd/4th Quarter 2015 0.00% to 1.81% 1.75 to 2.15 years 1.269% to 1.463% 3rd/4th Quarter 2016 0.18% to 2.10% 2.12 years 1.587% 1st Quarter 2017 1.85 years 1.593% 2nd Quarter 2017 90 Day T-Bill 0.79% to 1.04% 1 Year T-Note 0.99% to 1.24% 2 Year T-Note 1.18% to 1.38% 3 Year T-Note 1.35% to 1.57% 5 Year T-Note 1.71% to 1.94%

Following the Federal Reserve’s 25 basis point increase in interest rates during December of 2016, interest rates have continued to increase at a slow rate. The Port’s investment portfolio as of June 30th, 2017 is structured to earn an annualized return of $128,314 more than if the Port invested only in LGIP.

Cash and Cash Equivalent Holdings

Current investments (cash and LGIP) plus operating cash exceeded 12 months operating expenses by approximately $3.7 million as of June 30th, 2017. This level of liquid cash is being maintained due to capital needs planned for the remainder of 2017.

145 Investment Policy Limit Exception

There were no Investment Policy limit exceptions.

2017: Investment Approach

Based on an analysis of the current holdings, the Port has had limited opportunities to diversify its investment portfolio due to continuing low interest rates and the need to maintain a portfolio weighted toward the near term because of the capital needs of the Port within the next few years.

2nd Quarter Comments

Economic Data:

As the first half of 2017 came to a close, investors were faced with a shifting landscape that few would have predicated a year ago. A resurgence in Europe and emerging markets is driving a pick-up in global growth after years of U.S. dominance. Negative interest rates and deflation are in the rearview mirror in most countries. Global interest rates have moved higher as central banks debate how to unwind balance sheets built up to support monetary stimulus while minimizing disruption to the economy and bond markets.

The fixed income markets have been difficult to navigate in recent months. The Federal Reserve raised short-term rates, resulting in a flatter yield curve, which is typical in an environment of tighter monetary policy. However, longer-term interest rates fell during the quarter, making the yield curve even flatter, and suggesting that the outlook for long-term growth and inflation has become more subdued.

Like the stock market, the bond market saw rotations between sectors during the quarter. High yield bonds outperformed investment grade issues for the quarter but tighter credit spreads and increasing default rates are making the risk/reward trade-off less appealing and investors at times fled to the safety of high quality issuers.

Municipal bonds did well after a rebound in investor demand and a slowdown in new issuance. Overall state fundamentals are improving although inadequate financial cushions and unfunded pension obligations are problems with specific states such as Illinois and New Jersey. The global investing markets face a long list of economic and political risks.

Investment Activity

There were no redemptions or purchases during the 2nd quarter of 2017.

146

BACKGROUND & INVESTMENT REQUIREMENTS

Resolution No. 10-987 Investment Policy was approved in December 2010 and authorizes the investment of Port District funds which are not required for immediate expenditures and specifies the permitted types of investments, subject to statutory constraints (RCW 39.59 Public Funds – Authorized Investments).

The investment policy sets forth the following reporting requirements:

Requirement Comments Quarterly investment reports, including a management See Management Summary above summary that provides an analysis of the status of the and reports. current investment portfolio. Listing of individual securities held at the end of the See List of Securities by Maturity reporting period. Date. Realized and unrealized gains or losses resulting from Not applicable. Current investments appreciation or depreciation by listing the cost and market are intended to be held until maturity. value of securities over one-year duration that are not intended to be held until maturity (in accordance with Governmental Accounting Standards Board (GASB) requirements). Average weighted yield to maturity of portfolio on See last page of List of Securities by investments as compared to applicable benchmarks. Maturity Date. Benchmark rates are Treasury securities from the 90-day T-bill to the 5 year note. Listing of investment by maturity date. See List of Securities by Maturity Date. Percentage of the total portfolio, which each type of See Diversification by Issuer & investment represents. Diversification by Type of Investment.

In addition to the reporting requirements there are other key requirements provided in the investment policy such as maintaining one year operating reserves, defining investment grade securities as one of the two highest ratings (the commissioners provided guidance on November 13, 2012 to follow RCW 39.59 which allows investments in one of the three highest credit ratings), and limiting the concentration of investments in specific securities and issuers.

147 Port of Port AnBeles lnvestment Report List of Securities by Maturity Date

lnvest lnvest Security Type Cost Basis Face value Premium Market Unrealized Coupon Annual Est Yield Weighted Maturity %of Callable Rating Acquisition ID No (Par Value) (Discount) value Gain (Loss) int% lnterest lnt/cost Est Yield Portfolio Date Cost Basis Umpqua Bank 5 2,558,874 5 2,558,874 I 2,558,874 9,724 o.380% 0.o53% Current t4% No Not Rated LG IP LGIP 7,801-,594 7,801-,594 s 7,801,,594 69,627 0.892% 0.380% Current 43% No Not Rated 000014 PrB 4.75o/o L2/OL/L7 PTB MUNI 80,000.00 80,000 80,4r7 4L7 4.75% 3,800 4.75% 0.ozL% L2/t/2o77 o% CALL-NO A1 sh8/20LL.. 000015 PMLZ.O% 72/0L/17 PML MUNI 136,408.0s 135,000 1,408 135,082 (17s) 2.OO% 2,700 L.80% o.0L3% t2/tl2oL7 7% CALL.NO A1 s/29/2072 000016 PML 3.0% 72/OL/r7 PML MUNI 21.5,246.00 200,000 15,246 20L,700 (1,084) 3.OO% 6,000 L.55% o.oL8% 12/u2OL7 I% CALL-NO A1 s/?.9/2012 00001.7 wHAUTL r.7s% 72/L/17 WHAUTL MUNI 405,000.00 405,000 405,417 4T7 I.75% 7,088 1.75% o.039% L2/r/2Ot7 CALL-NO A1 6/s/2072 000018 PTB s.0% rzljtlt8 PTB MUNI 75,000.00 75,000 76,228 L,228 5.00% 3,750 5.00% o.070% 72/Ll20L8 Oo/o CALL.NO A1 sh8/207r 000019 PML 3.0% L2l}ilrg PML MUNI 370,526.55 345,000 75,527_ 353,915 1,,046 3.00% 10,350 L.79% o.036% L2/L/20L8 2% CALL_NO A1 s/29/2012 000020 PrB 5.25% L2/0rh9 PTB MUNI 70,000.00 70,000 7t,828 1,828 5.25% 3,675 5.25% o.020% t2/1/2019 0% CALL-NO A1 s/r8/2or!: 000021 PML 3.0% L2/0r/r9 PML MUNI 379,626.35 355,000 24,626- 369,470 4,608 3.OO% 10,650 2.QO% o.041% 12h/2O1e CALL.NO A1 5/29/2012 0ooo22 Prs s.7s% r2/o7/2o PTB MUNI 115,000.00 115,000 120,506 5,506 5.75% 6,613 5.75% o.036% 12/u202O t% CALL-NO A1 5/t8/29rr 000023 PML 3.0% r2lOrlZO PML MUNI 63,370.20 60,000 3,370 63,269 1,,682 3.00% 1,800 2.27% o.o08% L2/t/2O2O o% CALL-NO A1 s/2e/20L2 000024 DOUSCD 6.26% L2/L/3O DOUSCD MUNI 2,000,000.00 2,000,000 2,186,300 186,300 6.26% L25,!40 6.26% 0.683% 12/1./2O3O tL% CALL.NO AA1 L2/23/2070 000035 PACUTL2% O9/O1.h8 PACUTL MUNI 400,000.00 400,000 400,964 964 2.00% 8,000 0.044% 9/7/ZOt8 2% CALL-NO AA 4/23/2oL4 000044 PTAPWR3%9/0L/L7 PTAPWR MUNI ro5,3z7.oo 100,000 s,327 100,358 7 3.00% 3,000 o.90% 0.005% 9/L/2017 CALL.NO A1 2/5/20rs 000046 PTAPWR3%9/r/18 PTAPWR MUNI 164,837.8s 155,000 9,838 158,368 148 3.00% 4,650 L.T8% 0.0rr% el1./20L8 7% CALL-NO A1 2/5/2ors 000047 sNoscD t21% t2/L/t7 SNOSCD MUNI 365,565.75 365,000 s66 364,883 (206l L.2t% 4,477 L.t5% 0.o23% 12h/2o]-7 2% CALL-NO AA+ 418/20Ls 000051 FNMA .87s./" 07 /27/L8 FNMA USAGENCY 1,999,000.00 2,000,000 (1,000) 1,990,360 (e,Lozl 0.88% 17,500 os0% 0.o98% 7/27/20L8 II% CALL.QTR AAA 7 /27 /2016 000052 METFAC 2% 72/O1/L7 METFAC MUNI 1-,OL2,L20.00 1,000,000 t2,t2Q 1,004,880 (17s\ 2.OO% 20,000 o.7ao/" o.o43% 12/r/2oL7 6% CALL-NO AA L2/7/2oL6

Total ra3r7,495 18,220,465 97,O24 L8,444,4t4 Averase Weishted Yield L,593% years Above Values as of 6l30l2or7 Annual lnterest 3f8,482 I Average weighted Maturity 1.85 Cost Basis Face value lan - Mar 2017 April - June 2017 July - Sept 2017 Oct - Dec 20u CALL-ONE Benchmark Rates 72/28/2012 12/31./2013 12/31/2A74 12/3L/20L5 !213L/2A16 Min Rate Max Rate Min Rate Max Rate Min Rate Max Rate Min Rate Max Rate CALL-ANY Bank Rate Q.200% 0.200% o.204./" 0.200% o.360' o.360% 0.380% o380% 0.380% CALL-QTR 1,999,000 2,000,000 LGIP (Local Govt lnvestment Pool) 0.235% o.t28% o.7040/0 o.250% 0.497% o.630% o.701% 0.8280/. Q.gao% Totalcallable 1,999,000 2,000,000 90 Day T-Bill o.a70% 0.o7oo/o o.040% 0.1-60% o.550% 0.500% o.790% o.790% L.O40% 1 Year T-Note 0.150% o.130% 0.205% o.650% 0.920'/" o.790% 1-.Q60% o.990% I.240% 2 Year T-Note o.270% 0.380% o.674% r.060% I.290% t.1,20% LA00% 1,.180% L.3aO% 3 Year T-Note o.36A% 0.780% Lroo% t.3LO% 7.610'/" r.380% r.690% 1-.350% L.570% 5 Year T-Note o.720,/. r.750% 1.650% 1.7600/. 2.100% r.800% 2.1-40% 1.710% L.940%

Earnings Above LGIP 20t2 2013 20t4 2015 20L6 lst Qtr 2017 znd qtr 2017 3rd Qt;20u 4th Qtr 2017 Fund Balance (Cost Basis) 5 L6,792,320 5 r6,898,42L s 20,01s,120 s 1s,046,311 s 17,478,342 S 16,8s4,478 $ 18,317,49s Avg LGIP Rate o.2350% 0.1-400% o.0998% 0.201-6% o.4611% 0.6538'/. 0.8925% Earnings if 100% in LGIP $ 39,462 S 23,5s8 S 19,975 S 30,333 S 80,s93 S uo,19s s 163,484 s s Avg Weighted Yield L.8240% 1.8060% L.5500% !.88750/. L.5740% t.5870% 1-.5930% Earnings from lnvestments $ sos,zgr S 305,18s S 3Lo,234 s 283,999 5 27s,ro9 5 267,48]- 5 29L,798 s s Annual lnvest Earnings > [GlP $ 256,829 s 281,528 5 290,2s9 S 2s3,666 S 194,s15 5 rs7,286 S 128,314 s 5

148 Page 1 of2 Hr\lnv€stmentsLlnvest Rpt-Qrly\2017\Q2 2017\lnvestments as of 06-30-17, lnvestments as of 06-30-17 Port of Port Angeles lnvestment Report List of Securities by Maturity Date

Longer-Term lnvestments (maturity > 5 yrs, which is year 20221 unrealized Cost Basis Market value Gain (lossl Maturitv DOUSCD 6.26% 12h/3O 5 2,000,000 5 2,186,300 S 186,300 12/7/2030

s 2,ooo,ooo s 2,186,300 s 185,300 Percent of Portfolio LO.g% tL,g% 96.3%

weighted Value The weighted value is based on % of Portfolio at Cost Basis because the Port's policy is to hold the security until maturity

%ol %ol Policy Max at Cost Basis Market value Portfolio Portfolio Limits Purchase Broker Cost Market Per lnvestment Policy Resolution 10-987 LGIP 7,80r,594 7,807,594 43% 42% ok 50% Local Government lnvestment Pool (WA State Treasury Management 5ervices) Umpqua 2,558,874 2,558,874 L4% t4% ok 25% in a single financial institution Roth USAgency 1,999,000 1,990,360 Lt% LL% ok 60% in any one US Government Agency Piper Muni 5,958,028 6,093,586 33% 33% ok 60% no limit for state & local municipal bonds; assume US Government Agency limit ok 80% US Treasury L8,tL7,495 L8,4't't,4L4 100% L00%

Purchases Cost Basis face Value Prem (Discl Market Value Comments

1st Qtr Purchases 2nd Qtr Purchases 3rd Qtr Purchases 4th Qtr Purchases Total Purchases

Redemptions & Transfers Cost Easis Trans Amt Realized Gain ([oss) 1st Qtr redemptions 2nd Qtr redemptions 3rd Qtr redemptions 4th Qtr redemptions Total Redemptions

lnvestment Policy Exception Tracking Meeting 11-13-12: As of 9-30-12 lnvestments greater than 5 years; Douglass county Schools greater than 10 years; all "A" rated investments Meeting 11-13-12: Pori of Pasco "A" rated bonds. Also revised investment policy to allow purchase of securities carrying one of the three highest credit ratings

149 Page 2 ol 2 H:\lnvestm€ntsLlnvest Rpt-qvly\2017\q2 2017\lnvestments as of06-30-17, lnvestments as of06-30-17 Port of Port Angeles lnvestment Report

Diversfication By Maturity Date 6l30l2Ot7

Policy 6/30/2022 S 5 years at time of purchase up to 10 years when matched to expected use of reserve funds longer maturities shall be disclosed in writing to the Commissioners * 2017 Budget* Budget reduced for special SZOSI( economic development contrqct with CRTC 5 7,7s3,s64 Minimum cash is 12 months operating expenses based on budget. 1",063,035 Operating Cash accounts 1"0,360,468 lnvestments with "Current" maturity (LGIP and Umpqua)

Available Yo of 1L,423,502 Cash Average Portfolio Cost by Year Equivalents Maturity Est Yield Cost Cost Basis of Maturity 3,669,938 Excess Current o.636% S 10,360,468 57% s 10,360,468 2017 Q3 0s00% s ro5,327 1% Year 2Ot7 2017 Q4 r.e64% s 2,274,340 12% S z,Etg,oot 2018 Q3 1,.360% 5 2,563,939 t4% Year 20L8 2018 Q4 3.3e5% $ 445,527 2% s 3,009,364 2Or9 Q4 3.625% 5 qq9,6Z6 2% 5 449,626 2020 Q4 4.jtOo/o $ 178,370 L% 5 178,370 2030 Q4 6.2s7% s ,000 Llo/o s 2,000,000 Grand Total 2.439% 5 t8,3t7,495 tOO% 5 L8,?17,495

By Year of Maturity

S12,ooo,ooo

s10,000,000

S8,ooo,ooo

s6,ooo,ooo

s4,000,000

s2,000,000

s- Cu rrent 20t7 2078 2019 2020 2030

150 H:\lnvestmentsflnvest Rpt-Qtrly\2017\Q2 2017\lnvestments as of 06-30-17, lnvestments as of 06-30-17 Page 1 of 4 Port of Port Angeles lnvestment Report

Diversification By lssuer 6130l2ot7

Policy: no more than 25Yo in single financial institution LGIP limited Io 5O% or less US Treasury may compose 80% US Govt Agency no more than 50% in one agency

'/r,,b:i,'

i r i,,t li lJ ii,l I k,)

(r (o1 (ric1,:{i l ltliiiir n[:t It,l.l.! t:,ii' l lil;1;jf: NR LGIP $ 7,801,594 43% NR Umpqua $ 2,559,974 L$o/o A PTB s 34o,ooo 2% A PML S t,L6s,L77 5% A PTAPWR 5 27O,L65 L% A PACUTL s 400,000 2% AA WHAUTL 5 405,000 2% A DOUSCD s 2,000,000 LLo/o AA sNoscD S 365,566 2% AA FNMA S 1,999,000 LLo/o AA METFAC $ \aLz,tzo 6% GrandTotat $ 8,$17,495 1oA.%

By lssuer r METFAC FNMA 6% !7o/o

I SNOSCD 2% LGIP DOUSCD tL% 43%

r 2% r PACUTL s Umpqua 2% L4o/o PTB tY" 2% r PML 6%

151 H:\lnvestments\_lnvest Rpt-Qtrly\2017\q2 2017\lnvestments as of 06-30-17, lnvestments as of 06-30-17 Page 2 of 4 Port of Port Angeles lnvestment Report

Diversification by Type of lnvestment 6l3Ol2Ot7

%,t'lii' I,I,;tlifir,,:llir,r

(,l.lr I (i lf/;rtr) l . ll'l',{:t I l-t,t Yik,l k,i I i"11,, I;lJ;1:j [,, LGIP S 7,907,594 0.892% 43% Bank $ 2,558,874 o.380% L4% MUNI S 5,958,028 7.76L% 33o/o USAGENCY S 1,999,000 o.900% LLo/o Grand Total $ N8,3t7,495 2.439% tAAaA

By Type of lnvestment

L6tp 43%:

152 H\lnvestmentsflnvest Rpt-Qtrly\2o17\Q2 2017\lnvestments as of 06-30-17, lnvestments as of 0G30-u Page 3 of 4 Port of Port Angeles lnvestment Report

Diversification by Rating of lnvestment 6l30l2Ot7

NR = NonRoted, which is o quolified public depository by PDPC ( P u b I i c De posit P rote ction Com m i ssion )

%ol Portfolio Rating Cost Avg Est Yield Cost Basis NR s L0,360,468 o.636% 57o/o a s 2,r9o,342 2.833% 72o/o aa 5 3,777,686 2.547% 27% aaa s 1,999,000 o.900% Lt% Grand Total $ 18,317,495 2.439o/o L00o/o

By Rating

aaa tL'/a

aa 27% NR 56%

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August 8, 2017

Mr. John Calhoun PO Box 1882 Forks, WA 98331

Dear John,

On behalf of the Port of Port Angeles and the citizens of Clallam County, we sincerely thank you for your time, dedication, insight and contributions to the Port’s first Timber Advisory Committee (TAC) since its inception in August 2016.

Your previous 12 years of service as a Port Commissioner, extensive Department of Natural Resources (DNR) expertise and 35 years of policy work on forestry related issues on the Olympic Peninsula were absolutely invaluable to TAC.

It is dedicated and involved citizens like you who make a difference in the economic livelihood of Clallam County. Your participation on the Timber Advisory Committee advising the Port Commission on timber issues, timber harvest rules and regulations, advanced wood products and environmental issues has been integral in advancing the message that well managed timber lands on the Olympic Peninsula are crucial to the county’s environmental and economic future.

With gratitude and appreciation,

______Colleen M. McAleer Connie L. Beauvais Steven D. Burke President Vice President Secretary

154 Future Agenda Items – Work Session 8/14/17 Special Commission Meeting 1:30pm

Jan 2018 (Joint Port of Port Townsend) tentative • Airport Site Visit Presentation • Strategic Goals

Future • Strategic Plan review in preparation for budget (August) • POPA Promotional Video • China National Introductions • CLT Construction Event Planning (Timber Advisory Committee) • Governance: Delegation of Authority, Employee Handbook and resolutions • Lease Policy Considerations (Chris Riffle) • Lease rate setting process and publication of rates • Master plan "Vision" of different Port properties (purchase and sale opportunities) • Consultant contract template review and process for commission guidance

Future Joint Meetings • Some meetings could be with staff and one commissioner. • Special Meetings: Joint meeting with other public agencies in each district o Cross-public entity effort (Council of Governments); set 1 to 3 top community goals o Clallam County (7/17 and 10/16) . Quarterly Reports: EDC Report, SBDC Report, CRTC updates . Timber Advisory Committee, FIA Master Plan update, MTIP update, Emergency preparedness planning o NOPD update

155 Future Agenda Items –Commission Business Meeting 8/14/17 Special Commission Meeting 1:30pm

August 29, 2017 (Special Commission Meeting at 9:00am) • Strategic Plan review • Aviation / Airport presentation • Lease delegation discussion

September 5, 2017 (Special Commission Meeting at 2:30pm) • 2018 Capital Budget introduction / discussion • 2018 Community Partner Program policy changes

Announcements

Future • Resolution to change commission meeting dates and times • Special Meetings: Joint meeting with Lower Elwha Klallam Tribe • Environmental Management System (EMS) • CRTC Term Lease 2220 W 18th Street • Peninsula College Term Lease at 2220 W 18th Street

156