COMMISSION WORK SESSION AGENDA Special Meeting at Port of Port Angeles November 7, 2016 9:00 A.M

COMMISSION WORK SESSION AGENDA Special Meeting at Port of Port Angeles November 7, 2016 9:00 a.m.

***Commission and Staff Photos by Ernst—8:15 AM*** *** Time Specific Item 10:30 AM, Robert Hodgman with WSDOT***

I. CALL TO ORDER/PLEDGE OF ALLEGIANCE

II. EARLY PUBLIC COMMENT SESSION (total session up to 20 minutes)

III. DISCUSSION/QUESTIONS FOR AFTERNOON REGULAR MEETING

IV. WORK SESSION TOPICS

A. Q3 2016 Financials & Investments Reports (Pages 1-47)

B. American Forest Resource Council (AFRC) Quarterly Meeting Report (Commissioner Beauvais Presentation)

C. Alaska & Puget Sound Leadership Summit trip report (discussion)

D. FIA Apron project delay (Page 48)

E. National Business Aviation Association Conference trip report (discussion)

F. Robert Hodgman, Senior Aviation Planner, WSDOT (Pages 49-50) (Time Specific 10:30 AM)

V. FUTURE AGENDA TOPICS

A. Work Session (Page 51)

B. Business Meeting (Page 52)

VI. PUBLIC COMMENT SESSION (total session up to 20 minutes)

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

VIII. 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 COMMISSION MEETING • Members of the public wishing to address the Board on general items 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 address for the official record. • Speakers should not comment more than once per meeting unless their comments pertain to a new 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.

3rd QUARTER 2016 INVESTMENT REPORT As of September 30, 2016

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% 4.04 years 2.009% 1st Quarter 2016 0.23% to 1.73% 2.37 years 1.555% 2nd Quarter 2016 0.19% to 1.41% 1.75 years 1.269% 3rd Quarter 2016 0.18% to 1.26% 90 Day T-Bill 0.18% to 0.34% 1 Year T-Note 0.44% to 0.63% 2 Year T-Note 0.56% to 0.84% 3 Year T-Note 0.66% to 0.96% 5 Year T-Note 0.94% to 1.26%

The short term benchmark rates remained flat while longer term rates continued decreasing during the 3rd quarter which caused a continued flattening of the yield curve. The Port’s investment portfolio as of Sept 30, 2016 is structured to earn an annualized return of $172,361 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 $8.8 million as of Sept 30, 2016. This was due $740,000 worth of bonds reaching maturity and the receipt of $7.7 million relating to the K-Ply cleanup settlement. Those funds were not immediately invested in long term investments due to unresolved agreements about insurance reimbursement and the fact that the LGIP fund was paying around 0.5% and Port funds would need to be invested for at least 2 years to match that rate.

Investment Policy Limit Exception

There were no Investment Policy limit exceptions.

2016: Investment Approach

Based on an analysis of the current holdings, the Port has had limited opportunities to diversify its investment portfolio due to historically 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.

3rd Quarter Comments

Economic Data:

Over the first half of 2016, the U.S. economy grew at an average annual rate of 1.1%, weaker than the post-recession average of roughly 2%. Much of the growth was attributed to personal consumption, exports, and non-residential fixed investment (spending on plants and equipment). Overall, financial analysts expect the 2nd half of 2016 growth to be higher than we saw during the first half of the year, although some estimates have been seeing reductions recently. The IMF has cut its economic outlook for 2016 in the U.S. from 2.2% to 1.6%. The explanation for this reduction was weak business investment and lower demand for goods.

The Fed decided once again not to raise interest rates in their recent meeting, keeping their target at 0.25-0.5%. In their statement, the Fed determined “the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of continued progress toward its objectives.”

There have been no interest rate increases this year. Last December was the last time the Fed raised interest rates, the single interest rate we have seen during this economic recovery. The Fed’s policy during this economic recovery has been atypical, partly because of how gradual the recovery has been. At the next FOMC meeting in December, the Fed will likely raise rates. Where rates go in the future will be largely dependent on the Fed’s perception of the U.S. economy over the next several months.

Investment Activity

There was 1 purchase during third quarter which was $2 million worth of 2-year Fannie Mae bonds. They are callable quarterly and will yield 1.08% if held to first call, and 0.90% if held to maturity.

There were 3 redemptions during 3rd quarter. All three had been held to maturity and the face value and interest rate of each was:

• $250,000 that was paying 3% • $190,000 that was paying 2% • $300,000 that was paying 1%

2 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.

3 2016 YTD Quarter 3 Financial Review

Presented November 7, 2016 By John Nutter, Director of Finance & Admin

4 Agenda

• Total Operating Results

• Line of Business Results

5 2 Revenues: higher mainly due to increased export log activity Expenses: lower across most departments, lower tanker repair volume, no air carrier service Q3 Surplus/(Deficit) History: 2014 = $2.50 million; 2015 = $908k 2016 = $984k Actual Q3 Operating Surplus better than budget – increased revenues paired with decreased expenses 6 3 2016 Q3 by Line of Business

1,600,000 79% Operating Margin $3,284,506 Before Allocated Costs $2,300,010 1,200,000 & Depreciation $1,576,833

47%

800,000

30% 400,000 31%

11% 0 Marine Marine Rental Prop & Log Yard Marinas Terminals Trades Airports Q3 Actual 1,589,533 39,011 418,525 335,877 901,560

Op Margin %

MT 79% LY 30% Marinas 47%

MTA 11% RP + ARP 31% 7

4 MT & LY Activity • Marine Terminal – T3 log ship export operations driving revenue (Dockage-Cargo, Wharfage, Services & Facilities) – T1 Tanker Repair under with 3 scheduled Q4 Tanker repair vessels expected to raise EOY close to budget. • Log Yard – Higher revenues due to increase in export log activity. 8

5 Marine Trades & Marinas • Anticipated Dry-land boat storage not realized – delay in MTIP • Higher expenses due to Wastewater, Stormwater, Washdown Facility & misc Legal fees • Marinas – both marinas with higher than budget moorage, with PABH also showing favorable wharfage for the whale watching tours.

6 Airport Operations

• Parking Fees not realized due to lack of passenger air carrier • Hangar rentals slightly higher than budget • Scheduled return of air service cancelled by the provider - lower than budget expenses continue in Q3

7 Rental Properties & Airport RP • Revenues higher than budget for Q3 – ARP over due to longer than expected occupancy of a known mid-year lease cancellation. Revised estimation of move out is now 2017 Q2 – RP slightly over due to temp lease at old Kply Site • Expenses slightly under, planned general maintenance delayed on Bldg 10.10. Tenant remaining to 2017 Q2 11

8 General & Admin

• FM & MM mostly on budget – No emergent issues in Q3 • Business Development under budget • Timing of Advanced Wood Products Initiative, Sustainable Harvest and other Timber Advocacy • Admin Expenses less than budget – Across multiple categories

9 NonOperating • General NonOp – Surplus due to K-Ply settlement • Capital NonOp – Under due to timing of grant reimbursement applications ($1.3M CRTC Bldg completion, $673k FIA Apron & Master Plan) – Slight Surplus due to refunding of bond in Dec 2015 – effect unknown at time of budget

– Property tax receipts on budget 13

10 Any questions ?

14 Port of Port Angeles 2016 Actual to Budget Variance Report – Operations 3rd Quarter YTD September 2016 (excludes Capital Projects)

Table of Contents 1. Actual to Budget Variance Explanation 2. YTD Q3 comparison by year 2013 through 2016 3. Actual to Budget Variance Graphs 4. Actual to Budget Variance Reports a. General Fund Summary b. Account Summary by Department (Please Note: %’s listed in this system generated report are currently incorrect – year end correction anticipated) (Dollar Amounts are correct)

Operating Variance Explanation

Q3 2016 YTD operating revenues are $6.76 million, which is $92k or 1% higher than budget. The operating expenses are $5.77 million, which is ($450k) or (7%) under budget. Expenses did not increase in proportion to revenues resulting in a favorable Operating Surplus of $984k (variance of $542k higher than budget). The operating deficit after depreciation, of ($592k), is a favorable variance of $474k or 44% better than budget. Budgeted deficit was ($1.06 million). 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 $1.57 million which results in the net operating deficit of ($592k). The net operating surplus before depreciation of $984k 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): Q3 under $1.1 million due to timing of grant reimbursement applications.

Budget Reclassifications

No changes in Q1. Q2 – moved $89,073 in Operating Grant Revenue to Capital Grant Revenue with no change to the bottom line (moved in error, see note regarding Q3 below). Q3 – correct table back to original budget. After further discussion with Director of Finance, the $89,073 in question does refer to Operating Grants. The bottom line does not change.

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15 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 $ 8,806,598 $ 8,806,598  Q1, Q2, Q3 - No changes Expenses $ 8,280,475 $ 8,280,475  Q1, Q2, Q3 - No changes Op Surplus $ 526,122 $ 526,122 Before depreciation (cash flow) Depreciation $ 2,012,030 $ 2,012,030 Op Net Deficit ($1,485,907) ($1,485,907) After depreciation Non-Operating Revenues General $ 440,073 $ 440,073  Q1 - No Changes Capital 8,687,700 8,687,700  Q2 & Q3 – Security Grant line item Total $ 9,127,773 $ 9,127,773 changed & then moved back to original budget, no change to bottom line. Expenses General $ 565,000 $ 565,000  Q1, Q2, Q3 - No changes Capital 297,530 297,530 Total $ 862,530 $ 862,530 Surplus/(Def) General ($ 124,927) ($ 124,927)  Q1 - No changes Capital 8,390,170 8,390,170  Q2 & Q3 – See note under Non-Op Total $ 8,265,243 $ 8,265,243 Revenues, no change to bottom line. Op & NonOp Net Surplus $ 6,779,336 $ 6,779,336 After depreciation

**continue on to next page**

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16 Department Actual to Budget Variance Explanation

Variance Explanation of Variance Total Operating $92k or Revenues 1% higher Marine ($128k) T1 Tanker/Non-Tanker services (Dockage, Labor Terminals or (6%) Fee, Security Fee, Shore Power Utilities) are under lower ($226k). 3 scheduled Q4 Tanker repair vessels are expected to raise EOY close to budget. T3 log ship operations are over budget by $111k (Dockage for Cargo, Wharfage, Services & Facilities) mainly due to increase in cargo volume. MT total still believed to be on target for budget EOY. Marine ($26k) or Revenue is below budget across all categories for Trades (7%) Q3. Land lease under by ($23k) due to budgeted Area lower lease that will not be realized. EOY will be $30k under as a result. Log Yard $73k or Revenues are higher due to increase in export log 5% activity (Land Services $225k) which is offset by lower higher than budget Staging & Water services ($149k). Airports – $6k or Revenues are slightly higher than budget due to FIA FIA & SEK 3% Hangar rentals @ $6k higher. Vehicle Parking fees higher are lower than budget due to the delay of passenger carrier service. Sekiu is slightly under budget. Airport $82k or Revenues higher than budget due to delayed tenant Rental 10% departure of Bldg 10.10. Original, planned, end of Properties – higher lease was Q2. Tenant has moved departure to 2017 FIA Q2. Note: Accompanying graphs show slightly different variance due to the waiver of CRTC MTIB rent and the applicable FAA Revenue Diversion rules. PA Boat $64k or Revenue higher than budget due to Wharfage $22k Haven 7% (whale watching tours), Annual Launch Permits $4k, (includes higher Monthly Moorage $11k, Transient Moorage $13k & Public Boat Non-tax Monthly Moorage $9k. Structure rental is Ramp) under ($6k) due to a longer than expected lease negotiation from Q1. Total revenue is expected to be on budget at EOY. John $21k or Monthly moorage is over $53k, Transient is over $18k Wayne 2% and Non-Taxable is over $9k. Higher moorage is Marina higher offset by lower fuel sales: The crab fisheries normally (includes Public run about 6 weeks. Quotas were caught in 6 to 7 Boat Ramp) days in 2016. Total JWM revenue is expected to be slightly higher than budget at EOY. Rental $7k or Land lease over by $7k due to unbudgeted, Properties 13% over temporary usage (expected revenue through end of Q3) of the old Kply site (future MTIP).

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Variance Explanation of Variance Operating ($450k) or Expenses (7%) under Marine ($179k) or Expenses are lower across all categories mainly due to Terminals (30%) timing of activity and the delay of the budgeted T3 Dredge under Study. Slightly reduced Tanker Repair volume will result in budget lower than budget associated expenses (shore power) for EOY. Marine $107k or Expenses over budget by $106k mainly due outside services Trades Area 53% over & maintenance regarding Stormwater $15k, Wastewater $2k, budget Washdown Facility $34k, misc/legal fees $25k, finalized Agent Fee $12k & Travel Lift maintenance & inspection $17k. Log Yard $136k or Q3 expenses are over budget mainly due to maintenance & 16% over repair work on LY equipment (Log Stackers & Shovels) as budget well as LY general operating maintenance (bark debris removal, dust control, drainage/storm-water work, rock for yard fill & fuel). Airports – FIA ($116k) or Under budget mainly due to the scheduled air carrier service & SEK (21%) from FIA to SeaTac being cancelled by the service provider. under Service was to begin on March 1st. The service cancellation causes under budget amounts across most categories. Airport Rental ($32k) or Under budget for Q3 mainly due to timing of Bldg 10.10 Properties - (12%) availability & planned general maintenance anticipated at FIA under time of tenant departure. Departure now known to be moved to Q2 in 2017. PA Boat $18k or Over by $16k for Fuel Float/Tank replacement work that is Haven 4% over not eligible for capitalization. (includes Public Boat Ramp) John Wayne ($14k) or Expenses lower across most categories. Lower COGS for Marina (2%) fuel due to accelerated crab quota catch and less FM work (includes Public Boat under done than anticipated (at budget time). Ramp) Rental ($5k) or Q3 is on track with budget. Properties (4%) under Mechanical ($2k) or Q3 is on track with budget. Maintenance (2%) under Facilities $28k or FM Manager charge out lower than budgeted. This causes Maintenance 22% over an over budget in expenses. Business ($68k) or Expenses are under due to the timing of Advanced Wood (Economic) (9%) Products Initiative, Sustainable Harvest and Other Timber Development under Advocacy efforts. Expected to be under budget for the year. ($8k) revenue relates to CRTC waived rent at the MTIB. Please see ARP revenue for more information. Admin ($323k) or Currently under budget across multiple categories. (19%) under

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18 Variance Explanation of Variance Operating $542k or Revenues were over budget in total by 1%. Most Surplus 122% departments were slightly above budget with LY, ARP and (before Depr) higher PABH in the lead. LY is being driven by the better than expected export log market, ARP by a holdover lease at the 10.10 Bldg & PABH by whale watching wharfage. Total Expenses were (7%) under budget which helped to provide a higher than expected Operating Surplus.

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 $980k  Over due to K-Ply settlement. General higher Surplus Non-Op $3k or  Favorable variance due to less than budgeted bond Capital .004% interest from the refunding of 2006 LTGO in Dec 2015. Surplus higher Property tax receipts are on budget.

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19 Port of Port Angeles YTD Qtr3 Financial Report YTD Sept YTD Sept YTD Sept YTD Sept OPERATING REVENUES 2013 2014 2015 2016 DOCKAGE 996,051 1,146,674 945,152 709,023 WHARFAGE 665,280 942,987 492,332 634,992 SERVICE & FACILITIES 392,136 555,128 289,861 367,977 MT HANDLING ‐ 4,014 2,240 ‐ LABOR SERVICES / SECURITY FEE 129,485 160,749 158,817 94,882 LOG YARD STAGING 63,011 43,836 65,043 25,947 LOG YARD LAND SERVICES 313,286 868,615 330,105 1,022,390 LOG YARD WATER SERVICES 221,381 223,714 207,602 89,798 MOORAGE 1,347,652 1,412,777 1,380,888 1,477,569 MARINA & YARD FEES 182,843 205,158 197,006 203,699 LANDING/PARKING FEES 11,570 10,763 4,655 5,180 HANGAR/TIE DOWN 81,328 72,683 69,226 74,891 OTHER USER FEES 7,001 13,514 5,870 5,862 EQUIPMENT RENTAL 274,944 343,920 264,493 262,320 LAND LEASE/RENT 426,842 481,392 519,590 430,827 STRUCTURE LEASE/RENT 879,737 898,709 863,788 934,296 USE AGMT AND OTHER RENT 40,692 29,151 32,957 37,590 UTILITY PASS THRU & PRODUCT SALES 506,713 554,046 531,588 350,420 MISC & INTERDEPT REVENUE 6,208 10,017 16,606 31,595 TOTAL OPERATING REVENUES 6,546,160 7,977,847 6,377,819 6,759,258

OPERATING EXPENSES SALARIES, WAGES & BENEFITS 1,801,331 2,361,175 2,301,633 2,353,392 SUPPLIES 229,457 285,678 217,403 243,932 OUTSIDE SERVICES 566,416 779,913 883,018 1,226,490 PUBLIC INFORMATION 21,525 17,446 29,457 42,161 MARKETING 17,007 12,985 14,115 20,091 COMMUNITY RELATIONS ‐ 65 ‐ 3,933 ADS, DUES & PUBLICATIONS 31,845 49,894 53,647 39,491 TRAVEL MEETINGS 27,233 30,323 26,209 19,258 TRAVEL/TRAINING 28,181 46,755 55,166 43,846 PROMO HOSTING, TRADE & INDUSTRIAL DEV 6,439 5,737 8,899 6,712 RENT, UTILITIES, INSURANCE, TAXES 557,596 600,756 616,831 670,618 UTILITY (Pass Thru) & COST OF GOODS SOLD 376,922 428,736 373,197 267,079 OTHER EXPENSES (Misc & Interdept) 16,485 33,875 19,855 26,112 MAINTENANCE LABOR & BENEFITS 503,362 497,964 563,815 583,110 MAINTENANCE (Materials & Services) 216,880 320,984 305,898 228,537 TOTAL OPERATING EXPENSES 4,400,679 5,472,286 5,469,143 5,774,762

OPERATING SURPLUS (DEFICIT) (before Depr) 2,145,481 2,505,561 908,676 984,496

DEPRECIATION (includes donated assets) 1,475,933 1,438,153 1,506,580 1,576,833

OPERATING SURPLUS (DEFICIT) (after Depr) 669,548 1,067,408 (597,904) (592,337)

20 Operating Activity (Excludes Non‐Operating & Depreciation) 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Operating Operating Surplus Revenues Expenses Actual 6,759,258 5,774,762 984,496 Budget 6,666,792 6,224,638 442,154 Over(Under) 92,466 (449,876) 542,342

Marine Terminal (Before Allocations & Depreciation) 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Revenues Expenses Surplus Actual 2,004,228 414,695 1,589,533 Budget 2,132,135 593,764 1,538,371 Over(Under) (127,907) (179,068) 51,161

Marine Trades Area (Before Allocations & Depreciation) 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Revenues Expenses (Deficit) Actual 345,893 306,882 39,011 Budget 371,888 199,825 172,063 Over(Under) (25,995) 107,057 (133,052)

O:\Accounting\2016 Financial Reports\2016 Q3\2016 Q3 Graphs-Ops w Marinas.xlsx, GRAPHS Graph Pa21ge 1 of 4 Log Yard (Before Allocations & Depreciation) 1,500,000 1,250,000 1,000,000 750,000 500,000 250,000 0 Revenues Expenses Surplus Actual 1,387,574 969,049 418,525 Budget 1,314,456 832,499 481,957 Over(Under) 73,118 136,549 (63,431)

Airports (Before Allocations & Depreciation) 600,000 400,000 200,000 0 (200,000) (400,000) Revenues Expenses (Deficit) Actual 182,573 427,555 (244,982) Budget 176,149 544,295 (368,146) Over(Under) 6,424 (116,740) 123,164

Airport Rental Properties (Before Allocations & Depreciation) 1,000,000 750,000 500,000 250,000 0 Revenues Expenses Surplus Actual 848,797 223,271 625,525 Budget 774,645 255,657 518,988 Over(Under) 74,152 (32,386) 106,537

O:\Accounting\2016 Financial Reports\2016 Q3\2016 Q3 Graphs-Ops w Marinas.xlsx, GRAPHS Graph Page22 2 of 4 PA Boat Haven (includes Boat Ramp) (Before Allocations & Depreciation) 1,250,000 1,000,000 750,000 500,000 250,000 0 Revenues Expenses Surplus Actual 1,008,187 474,776 533,410 Budget 943,935 456,350 487,585 Over(Under) 64,252 18,427 45,825

John Wayne Marina (includes Boat Ramp) (Before Allocations & Depreciation) 1,000,000 750,000 500,000 250,000 0 Revenues Expenses Surplus Actual 921,430 553,280 368,150 Budget 900,150 567,275 332,875 Over(Under) 21,280 (13,994) 35,274

Rental Properties (Before Allocations & Depreciation)

100,000 60,000 20,000 (20,000) (60,000) Revenues Expenses (Deficit) Actual 60,577 105,243 (44,666) Budget 53,434 110,305 (56,871) Over(Under) 7,143 (5,062) 12,205

O:\Accounting\2016 Financial Reports\2016 Q3\2016 Q3 Graphs-Ops w Marinas.xlsx, GRAPHS Graph Page23 3 of 4 Allocable Expenses (after Direct Charges) 2,750,000 2,500,000 2,250,000 2,000,000 1,750,000 1,500,000 1,250,000 1,000,000 750,000 500,000 250,000 0 Mech Facilities Admin & Allocated Bus Dev Shop Maint Gen Total Actual 108,846 155,723 674,107 1,361,334 2,300,010 Budget 111,301 127,060 742,201 1,684,107 2,664,668 Over(Under) (2,455) 28,663 (68,093) (322,773) (364,659)

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

1,800,000

800,000

(200,000) Revenues Expenses Surplus Actual 1,601,550 781,498 820,052 Budget 263,250 423,750 (160,500) Over(Under) 1,338,300 357,748 980,552

Non‐Operating Capital Related (All Depts) (Prop Taxes, Capital Grants, Bonds) 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Revenues Expenses Surplus Actual 4,353,058 219,416 4,133,643 Budget 6,421,469 223,148 6,198,321 Over(Under) (2,068,411) (3,732) (2,064,679)

O:\Accounting\2016 Financial Reports\2016 Q3\2016 Q3 Graphs-Ops w Marinas.xlsx, GRAPHS Graph Page24 4 of 4 Port of Port Angeles General Fund Summary Actual to Budget Variance Report For the Nine Months Ending Friday, September 30, 2016 September 2016 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

MARINE TERMINAL 2,004,228 2,132,135 (127,907) (6%) 2,841,847 MARINE TRADES AREA 345,893 371,888 (25,995) (7%) 495,850 LOG YARD 1,387,574 1,314,456 73,118 6% 1,752,609 AIRPORTS 182,573 176,149 6,424 4% 250,159 AIRPORT RENTAL PROPERTIES 857,167 774,645 82,522 11% 986,132 MARINA: Port Angeles Boat Haven 1,008,187 943,935 64,252 7% 1,258,580 MARINA: John Wayne Marina 921,430 900,150 21,280 2% 1,151,200 RENTAL PROPERTIES 60,577 53,434 7,143 13% 70,221 ADMIN & GENERAL (8,370) (8,370) 0% TOTAL OPERATING REVENUES 6,759,258 6,666,792 92,466 1% 8,806,598

NON-OPERATING REVENUES GENERAL 1,601,550 263,250 1,338,300 508% 351,000 CAPITAL 4,353,058 6,421,469 (2,068,411) (32%) 8,776,773 TOTAL NON-OPERATING REVENUES 5,954,608 6,684,719 (730,110) (11%) 9,127,773

TOTAL REVENUES 12,713,866 13,351,511 (637,645) (5%) 17,934,371

OPERATING EXPENSES

MARINE TERMINAL 414,695 593,764 (179,068) (30%) 791,685 MARINE TRADES AREA 306,882 199,825 107,057 54% 266,434 LOG YARD 969,049 832,499 136,549 16% 1,109,999 AIRPORTS 427,555 544,295 (116,740) (21%) 725,741 AIRPORT RENTAL PROPERTIES 223,271 255,657 (32,386) (13%) 340,793 MARINA: Port Angeles Boat Haven 474,776 456,350 18,427 4% 608,476 MARINA: John Wayne Marina 553,280 567,275 (13,994) (2%) 737,466 RENTAL PROPERTIES 105,243 110,305 (5,062) (5%) 147,073 BUSINESS UNIT EXPENSES 3,474,753 3,559,970 (85,217) (2%) 4,727,667

MECHANICAL MAINTENANCE 108,846 111,301 (2,455) (2%) 148,318 FACILITIES MAINTENANCE 155,723 127,060 28,663 23% 169,413 ECONOMIC DEVELOPMENT 674,107 742,201 (68,093) (9%) 989,601 ADMIN & GENERAL 1,361,334 1,684,107 (322,773) (19%) 2,245,476 MAINT & ALLOCATED EXPENSES 2,300,010 2,664,668 (364,659) (14%) 3,552,808 OPERATING EXPENSES 5,774,762 6,224,638 (449,876) (7%) 8,280,475

DEPRECIATION 1,576,833 1,509,023 67,810 4% 2,012,030

NON-OPERATING EXPENSES GENERAL 781,498 423,750 357,748 84% 565,000 CAPITAL 219,416 223,148 (3,732) (2%) 297,530 TOTAL NON-OPERATING EXPENSES 1,000,913 646,898 354,016 55% 862,530

TOTAL EXPENDITURES 8,352,508 8,380,558 (28,050) 0% 11,155,035

OPERATING NET SURPLUS (DEFICIT) (592,337) (1,066,868) 474,531 (44%) (1,485,907) NON-OP NET SURPLUS (DEFICIT) 4,953,695 6,037,821 (1,084,126) (18%) 8,265,243 NET SURPLUS (DEFICIT) 4,361,358 4,970,953 (609,595) (12%) 6,779,336

Report: Bud v Act GF Su2 Printed on: 10/31/2016 10:40 AM Page 1 Row: General Fund Sum w Marinas Column: Gen Fund Variance Report YTD 25 Port of Port Angeles Summary of All Units Account Summary: Budget to Actual Variance For the Nine Months Ending Friday, September 30, 2016 September 2016 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

DOCKAGE 709,023 848,102 (139,078) (16%) 1,130,802 WHARFAGE 634,992 575,280 59,712 10% 767,040 SERVICE & FACILITIES 367,977 346,140 21,837 6% 461,520 MT HANDLING 0 1,875 (1,875) (100%) 2,500 LABOR SERVICES / SECURITY FEE 94,882 126,711 (31,829) (25%) 168,948 LOG YARD STAGING 25,947 52,050 (26,103) (50%) 69,400 LOG YARD LAND SERVICES 1,022,390 796,835 225,555 28% 1,062,447 LOG YARD WATER SERVICES 89,798 212,352 (122,554) (58%) 283,136 MOORAGE 1,477,569 1,362,225 115,344 8% 1,816,300 MARINA & YARD FEES 203,699 209,250 (5,551) (3%) 279,000 LANDING/PARKING FEES 5,180 11,180 (6,000) (54%) 15,500 HANGAR/TIE DOWN 74,891 69,075 5,816 8% 92,100 OTHER USER FEES 5,862 13,125 (7,263) (55%) 17,500 EQUIPMENT RENTAL 262,320 245,520 16,800 7% 327,360 LAND LEASE/RENT 430,827 422,289 8,538 2% 531,691 STRUCTURE LEASE/RENT 934,296 854,652 79,644 9% 1,122,146 USE AGMT AND OTHER RENT 37,590 28,950 8,640 30% 38,600 UTILITY PASS THRU & PRODUCT SALES 350,420 477,532 (127,111) (27%) 587,709 MISC & INTERDEPT REVENUE 31,595 13,650 17,945 131% 32,900 TOTAL OPERATING REVENUES 6,759,258 6,666,792 92,466 (146%) 8,806,598 Error: over (under) all accts 0 0 0 (148%) 0

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 2,353,392 2,424,308 (70,917) (3%) 3,232,411 SUPPLIES 243,932 229,275 14,657 6% 305,700 OUTSIDE SERVICES 1,226,490 1,258,754 (32,264) (3%) 1,678,339 PUBLIC INFORMATION 42,161 32,025 10,136 32% 42,700 MARKETING 20,091 108,000 (87,909) (81%) 144,000 COMMUNITY RELATIONS 3,933 3,975 (42) (1%) 5,300 ADS, DUES & PUBLICATIONS 39,491 36,443 3,048 8% 48,591 TRAVEL MEETINGS 19,258 52,425 (33,167) (63%) 69,900 TRAVEL/TRAINING 43,846 54,838 (10,992) (20%) 73,117 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 6,712 10,725 (4,013) (37%) 14,300 RENT, UTILITIES, INSURANCE, TAXES 670,618 621,685 48,933 8% 828,938 UTILITY (Pass Thru) & COST OF GOODS SOLD 267,079 325,087 (58,008) (18%) 414,549 OTHER EXPENSES (Misc & Interdept) 26,112 26,000 112 0% 34,500 CONTINGENCY 0 112,500 (112,500) (100%) 150,000 MAINTENANCE LABOR & BENEFITS 583,110 624,894 (41,784) (7%) 833,192 MAINTENANCE (Materials & Services) 228,537 303,703 (75,166) (25%) 404,938 TOTAL OPERATING EXPENSES 5,774,762 6,224,638 (449,876) (303%) 8,280,475 Error: over (under) all accts 0 0 0 (296%) 0

OPERATING SURPLUS (DEFICIT) (before Depr) 984,496 442,154 542,341 157% 526,123

ALLOCATED EXPENSES 0 0 0 0% 0 DEPRECIATION (includes donated assets) 1,576,833 1,509,023 67,810 4% 2,012,030

OPERATING SURPLUS (DEFICIT) (after Depr) (592,337) (1,066,868) 474,531 152% (1,485,907)

NON-OP GENERAL REVENUES

INTEREST EARNINGS 218,863 135,000 83,863 62% 180,000 OTHER TAX RECEIPTS 141,371 93,750 47,621 51% 125,000 MISC NON OP REVENUES 1,124,473 15,000 1,109,473 7,397% 20,000 PASSENGER FACILITY CHARGES (PFC'S) 1,261 19,500 (18,239) (94%) 26,000 GAIN (LOSS) & SPECIAL ITEMS 115,582 0 115,582 0% 0 TOTAL NON-OP GENERAL REV 1,601,550 263,250 1,338,300 7,416% 351,000 Error: over (under) all accts 0 0 0 6,908% 0

NON-OP GENERAL EXPENSES

Report: Bud v Act Sum Printed Page 1 on: 10/31/2016 10:39 AM Row: Inc Stmt Acct Sum with Salaries Condensed Column: ACTUAL TO BUDGET 26 Port of Port Angeles Summary of All Units Account Summary: Budget to Actual Variance For the Nine Months Ending Friday, September 30, 2016 September 2016 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET ENVIRONMENTAL 745,165 300,000 445,165 148% 400,000 MISC NON OP EXPENSE 36,333 123,750 (87,417) (71%) 165,000 TOTAL NON-OP GENERAL EXP 781,498 423,750 357,748 78% 565,000 Error: over (under) all accts 0 0 0 (7%) 0

NET NON-OP GENERAL SURPLUS (DEFICIT) 820,052 (160,500) 980,552 7,338% (214,000)

NON-OP CAPITAL REVENUES

PROPERTY TAX RECEIPTS 1,090,333 1,090,500 (167) 0% 1,454,000 GRANTS - CAPITAL 3,262,725 5,330,969 (2,068,244) (39%) 7,322,773 TOTAL NON-OP CAPITAL REV 4,353,058 6,421,469 (2,068,411) (39%) 8,776,773

NON-OP CAPITAL EXPENSES

BOND COSTS & INTEREST EXPENSE 219,416 223,148 (3,732) (2%) 297,530 TOTAL NON-OP CAPITAL EXP 219,416 223,148 (3,732) (2%) 297,530

NET NON-OP CAPITAL SURPLUS (DEFICIT) 4,133,643 6,198,321 (2,064,679) (37%) 8,479,243

NET NON-OP SURPLUS (DEFICIT) 4,953,695 6,037,821 (1,084,126) 7,301% 8,265,243

TOTAL NET SURPLUS (DEFICIT) (before Depr) 5,938,191 6,479,976 (541,785) 7,458% 8,791,366

TOTAL NET SURPLUS (DEFICIT) (after Depr) 4,361,358 4,970,953 (609,595) 7,453% 6,779,336

Report: Bud v Act Sum Printed Page 2 on: 10/31/2016 10:39 AM Row: Inc Stmt Acct Sum with Salaries Condensed Column: ACTUAL TO BUDGET 27 Port of Port Angeles MARINE TERMINAL Account Summary: Budget to Actual Variance For the Nine Months Ending Friday, September 30, 2016 September 2016 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

DOCKAGE 709,023 848,102 (139,078) (16%) 1,130,802 WHARFAGE 607,363 570,780 36,583 6% 761,040 SERVICE & FACILITIES 367,977 346,140 21,837 6% 461,520 MT HANDLING 0 1,875 (1,875) (100%) 2,500 LABOR SERVICES / SECURITY FEE 92,872 126,711 (33,839) (27%) 168,948 OTHER USER FEES 0 750 (750) (100%) 1,000 EQUIPMENT RENTAL 10,008 11,250 (1,242) (11%) 15,000 LAND LEASE/RENT 35,047 17,579 17,469 99% 22,438 STRUCTURE LEASE/RENT 132,134 126,899 5,235 4% 169,198 USE AGMT AND OTHER RENT 6,975 0 6,975 0% 0 UTILITY PASS THRU & PRODUCT SALES 40,121 81,300 (41,179) (51%) 108,400 MISC & INTERDEPT REVENUE 2,708 750 1,958 261% 1,000 TOTAL OPERATING REVENUES 2,004,228 2,132,135 (127,907) 72% 2,841,847 Error: over (under) all accts 0 0 0 78% 0

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 202,859 213,947 (11,088) (5%) 285,263 SUPPLIES 5,459 7,500 (2,041) (27%) 10,000 OUTSIDE SERVICES 18,376 81,750 (63,374) (78%) 109,000 PUBLIC INFORMATION 627 0 627 0% 0 ADS, DUES & PUBLICATIONS 1,494 1,140 354 31% 1,520 TRAVEL MEETINGS 1,002 2,250 (1,248) (55%) 3,000 TRAVEL/TRAINING 1,623 1,875 (252) (13%) 2,500 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 1,098 1,500 (402) (27%) 2,000 RENT, UTILITIES, INSURANCE, TAXES 69,628 78,675 (9,047) (11%) 104,900 UTILITY (Pass Thru) & COST OF GOODS SOLD 30,966 66,300 (35,334) (53%) 88,400 OTHER EXPENSES (Misc & Interdept) 1,614 2,250 (636) (28%) 3,000 MAINTENANCE LABOR & BENEFITS 68,029 109,358 (41,329) (38%) 145,811 MAINTENANCE (Materials & Services) 11,921 27,218 (15,298) (56%) 36,291 TOTAL OPERATING EXPENSES 414,695 593,764 (179,068) (362%) 791,685 Error: over (under) all accts 0 0 0 (332%) 0

OPERATING SURPLUS (DEFICIT) (before Depr) 1,589,532 1,538,371 51,161 434% 2,050,162

ALLOCATED EXPENSES 0 0 0 0% 0 DEPRECIATION (includes donated assets) 200,675 200,675 0 0% 267,567

OPERATING SURPLUS (DEFICIT) (after Depr) 1,388,857 1,337,696 51,161 434% 1,782,595

NON-OP CAPITAL REVENUES

GRANTS - CAPITAL 483,193 555,250 (72,057) (13%) 1,160,000 TOTAL NON-OP CAPITAL REV 483,193 555,250 (72,057) (13%) 1,160,000

NET NON-OP CAPITAL SURPLUS (DEFICIT) 483,193 555,250 (72,057) (13%) 1,160,000

NET NON-OP SURPLUS (DEFICIT) 483,193 555,250 (72,057) (13%) 1,160,000

TOTAL NET SURPLUS (DEFICIT) (before Depr) 2,072,725 2,093,621 (20,896) 421% 3,210,162

TOTAL NET SURPLUS (DEFICIT) (after Depr) 1,872,050 1,892,946 (20,896) 421% 2,942,595

Report: Bud v Act Sum Printed Page 3 on: 10/31/2016 10:39 AM Row: Inc Stmt Acct Sum with Salaries Condensed Column: ACTUAL TO BUDGET 28 Port of Port Angeles MARINE TRADES AREA Account Summary: Budget to Actual Variance For the Nine Months Ending Friday, September 30, 2016 September 2016 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

MARINA & YARD FEES 131,156 150,000 (18,844) (13%) 200,000 OTHER USER FEES 0 7,500 (7,500) (100%) 10,000 EQUIPMENT RENTAL 89,296 79,500 9,796 12% 106,000 LAND LEASE/RENT 61,162 83,662 (22,500) (27%) 111,550 STRUCTURE LEASE/RENT 34,754 20,101 14,654 73% 26,801 USE AGMT AND OTHER RENT 27,512 28,875 (1,363) (5%) 38,500 UTILITY PASS THRU & PRODUCT SALES 583 2,250 (1,667) (74%) 3,000 MISC & INTERDEPT REVENUE 1,430 0 1,430 0% 0 TOTAL OPERATING REVENUES 345,893 371,888 (25,995) (133%) 495,850 Error: over (under) all accts 0 0 0 (126%) 0

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 72,122 77,453 (5,331) (7%) 103,270 SUPPLIES 2,161 7,500 (5,339) (71%) 10,000 OUTSIDE SERVICES 130,383 39,000 91,384 234% 52,000 PUBLIC INFORMATION 125 0 125 0% 0 MARKETING 2,625 3,750 (1,125) (30%) 5,000 ADS, DUES & PUBLICATIONS 0 450 (450) (100%) 600 TRAVEL MEETINGS 264 1,125 (861) (77%) 1,500 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 562 750 (188) (25%) 1,000 RENT, UTILITIES, INSURANCE, TAXES 27,460 20,912 6,549 31% 27,882 UTILITY (Pass Thru) & COST OF GOODS SOLD 0 1,650 (1,650) (100%) 2,200 OTHER EXPENSES (Misc & Interdept) 1,732 750 982 131% 1,000 MAINTENANCE LABOR & BENEFITS 47,231 36,736 10,494 29% 48,982 MAINTENANCE (Materials & Services) 22,218 9,750 12,468 128% 13,000 TOTAL OPERATING EXPENSES 306,882 199,825 107,057 143% 266,434 Error: over (under) all accts 0 0 0 90% 0

OPERATING SURPLUS (DEFICIT) (before Depr) 39,011 172,063 (133,052) (276%) 229,416

ALLOCATED EXPENSES 0 0 0 0% 0 DEPRECIATION (includes donated assets) 47,964 47,954 10 0% 63,938

OPERATING SURPLUS (DEFICIT) (after Depr) (8,953) 124,109 (133,062) (276%) 165,478 NET NON-OP SURPLUS (DEFICIT) 0 0 0 0% 0

TOTAL NET SURPLUS (DEFICIT) (before Depr) 39,011 172,063 (133,052) (276%) 229,416

TOTAL NET SURPLUS (DEFICIT) (after Depr) (8,953) 124,109 (133,062) (276%) 165,478

Report: Bud v Act Sum Printed Page 5 on: 10/31/2016 10:39 AM Row: Inc Stmt Acct Sum with Salaries Condensed Column: ACTUAL TO BUDGET 29 Port of Port Angeles LOG YARD Account Summary: Budget to Actual Variance For the Nine Months Ending Friday, September 30, 2016 September 2016 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

LOG YARD STAGING 25,947 52,050 (26,103) (50%) 69,400 LOG YARD LAND SERVICES 1,022,390 796,835 225,555 28% 1,062,447 LOG YARD WATER SERVICES 89,798 212,352 (122,554) (58%) 283,136 OTHER USER FEES 777 4,875 (4,098) (84%) 6,500 EQUIPMENT RENTAL 154,760 142,770 11,990 8% 190,360 LAND LEASE/RENT 24,069 23,760 309 1% 31,680 STRUCTURE LEASE/RENT 32,794 32,794 0 0% 43,726 UTILITY PASS THRU & PRODUCT SALES 16,366 40,020 (23,654) (59%) 53,360 MISC & INTERDEPT REVENUE 20,672 9,000 11,672 130% 12,000 TOTAL OPERATING REVENUES 1,387,574 1,314,456 73,118 (83%) 1,752,609 Error: over (under) all accts 0 0 0 (89%) 0

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 484,893 468,380 16,512 4% 624,507 SUPPLIES 100,598 75,000 25,598 34% 100,000 OUTSIDE SERVICES 9,381 11,250 (1,869) (17%) 15,000 PUBLIC INFORMATION 1,125 0 1,125 0% 0 MARKETING 1,986 1,125 861 77% 1,500 COMMUNITY RELATIONS 1,000 0 1,000 0% 0 ADS, DUES & PUBLICATIONS 604 0 604 0% 0 TRAVEL MEETINGS 886 1,500 (614) (41%) 2,000 TRAVEL/TRAINING 6,136 1,125 5,011 445% 1,500 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 2,395 2,850 (455) (16%) 3,800 RENT, UTILITIES, INSURANCE, TAXES 92,591 57,795 34,796 60% 77,060 UTILITY (Pass Thru) & COST OF GOODS SOLD 14,400 30,300 (15,900) (52%) 40,400 OTHER EXPENSES (Misc & Interdept) 4,031 4,500 (469) (10%) 6,000 MAINTENANCE LABOR & BENEFITS 146,151 94,530 51,621 55% 126,040 MAINTENANCE (Materials & Services) 102,872 84,144 18,728 22% 112,192 TOTAL OPERATING EXPENSES 969,049 832,499 136,549 560% 1,109,999 Error: over (under) all accts 0 0 0 544% 0

OPERATING SURPLUS (DEFICIT) (before Depr) 418,526 481,957 (63,432) (644%) 642,610

ALLOCATED EXPENSES 0 0 0 0% 0 DEPRECIATION (includes donated assets) 224,915 217,905 7,010 3% 290,540

OPERATING SURPLUS (DEFICIT) (after Depr) 193,611 264,052 (70,442) (647%) 352,070 NET NON-OP SURPLUS (DEFICIT) 0 0 0 0% 0

TOTAL NET SURPLUS (DEFICIT) (before Depr) 418,526 481,957 (63,432) (644%) 642,610

TOTAL NET SURPLUS (DEFICIT) (after Depr) 193,611 264,052 (70,442) (647%) 352,070

Report: Bud v Act Sum Printed Page 6 on: 10/31/2016 10:39 AM Row: Inc Stmt Acct Sum with Salaries Condensed Column: ACTUAL TO BUDGET 30 Port of Port Angeles FAIRCHILD AIRPORT Account Summary: Budget to Actual Variance For the Nine Months Ending Friday, September 30, 2016 September 2016 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

LANDING/PARKING FEES 5,180 11,180 (6,000) (54%) 15,500 HANGAR/TIE DOWN 64,291 57,600 6,691 12% 76,800 OTHER USER FEES 4,400 0 4,400 0% 0 LAND LEASE/RENT 32,621 32,213 408 1% 42,950 STRUCTURE LEASE/RENT 57,204 57,225 (21) 0% 76,300 USE AGMT AND OTHER RENT 0 75 (75) (100%) 100 UTILITY PASS THRU & PRODUCT SALES 7,765 5,932 1,833 31% 7,909 MISC & INTERDEPT REVENUE 62 0 62 0% 14,700 TOTAL OPERATING REVENUES 171,523 164,224 7,299 (110%) 234,259 Error: over (under) all accts 0 0 0 (114%) 0

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 117,602 143,524 (25,922) (18%) 191,365 SUPPLIES 7,229 7,500 (271) (4%) 10,000 OUTSIDE SERVICES 43,396 19,650 23,746 121% 26,200 PUBLIC INFORMATION 761 750 11 2% 1,000 MARKETING 69 78,750 (78,681) (100%) 105,000 COMMUNITY RELATIONS 0 225 (225) (100%) 300 ADS, DUES & PUBLICATIONS (221) 187 (408) (218%) 250 TRAVEL MEETINGS 486 300 186 62% 400 TRAVEL/TRAINING 608 2,250 (1,642) (73%) 3,000 RENT, UTILITIES, INSURANCE, TAXES 111,316 112,675 (1,359) (1%) 150,238 UTILITY (Pass Thru) & COST OF GOODS SOLD 7,844 5,932 1,912 32% 7,909 OTHER EXPENSES (Misc & Interdept) 3,148 1,125 2,023 180% 1,500 MAINTENANCE LABOR & BENEFITS 109,906 121,766 (11,859) (10%) 162,354 MAINTENANCE (Materials & Services) 9,029 21,806 (12,777) (59%) 29,075 TOTAL OPERATING EXPENSES 411,173 516,439 (105,266) (186%) 688,591 Error: over (under) all accts 0 0 0 (165%) 0

OPERATING SURPLUS (DEFICIT) (before Depr) (239,650) (352,215) 112,565 76% (454,332)

ALLOCATED EXPENSES 0 0 0 0% 0 DEPRECIATION (includes donated assets) 366,177 331,247 34,930 11% 441,662

OPERATING SURPLUS (DEFICIT) (after Depr) (605,827) (683,462) 77,635 65% (895,994)

NON-OP CAPITAL REVENUES

GRANTS - CAPITAL 221,025 894,214 (673,189) (75%) 1,759,000 TOTAL NON-OP CAPITAL REV 221,025 894,214 (673,189) (75%) 1,759,000

NET NON-OP CAPITAL SURPLUS (DEFICIT) 221,025 894,214 (673,189) (75%) 1,759,000

NET NON-OP SURPLUS (DEFICIT) 221,025 894,214 (673,189) (75%) 1,759,000

TOTAL NET SURPLUS (DEFICIT) (before Depr) (18,625) 541,999 (560,624) 0% 1,304,668

TOTAL NET SURPLUS (DEFICIT) (after Depr) (384,801) 210,752 (595,554) (10%) 863,006

Report: Bud v Act Sum Printed Page 7 on: 10/31/2016 10:39 AM Row: Inc Stmt Acct Sum with Salaries Condensed Column: ACTUAL TO BUDGET 31 Port of Port Angeles FIA NON AERONAUTICAL Account Summary: Budget to Actual Variance For the Nine Months Ending Friday, September 30, 2016 September 2016 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

EQUIPMENT RENTAL 1,407 0 1,407 0% 0 LAND LEASE/RENT 228,350 223,432 4,918 2% 268,571 STRUCTURE LEASE/RENT 614,973 550,448 64,525 12% 716,541 USE AGMT AND OTHER RENT 2,928 0 2,928 0% 0 UTILITY PASS THRU & PRODUCT SALES 783 765 18 2% 1,020 MISC & INTERDEPT REVENUE 8,726 0 8,726 0% 0 TOTAL OPERATING REVENUES 857,167 774,645 82,522 16% 986,132 Error: over (under) all accts 0 0 0 6% 0

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 50,348 61,328 (10,980) (18%) 81,770 SUPPLIES 1,297 750 547 73% 1,000 OUTSIDE SERVICES 33,178 25,500 7,678 30% 34,000 PUBLIC INFORMATION 0 150 (150) (100%) 200 MARKETING 2,432 1,500 932 62% 2,000 TRAVEL MEETINGS 763 750 14 2% 1,000 TRAVEL/TRAINING 0 1,500 (1,500) (100%) 2,000 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 23 0 23 0% 0 RENT, UTILITIES, INSURANCE, TAXES 60,274 60,507 (233) 0% 80,676 UTILITY (Pass Thru) & COST OF GOODS SOLD 783 765 18 2% 1,020 OTHER EXPENSES (Misc & Interdept) 257 250 7 3% 250 MAINTENANCE LABOR & BENEFITS 57,561 50,908 6,653 13% 67,877 MAINTENANCE (Materials & Services) 16,354 51,750 (35,396) (68%) 69,000 TOTAL OPERATING EXPENSES 223,271 255,657 (32,386) (101%) 340,793 Error: over (under) all accts 0 0 0 (89%) 0

OPERATING SURPLUS (DEFICIT) (before Depr) 633,895 518,988 114,907 118% 645,339

ALLOCATED EXPENSES 0 0 0 0% 0 DEPRECIATION (includes donated assets) 244,753 219,774 24,979 11% 293,032

OPERATING SURPLUS (DEFICIT) (after Depr) 389,142 299,214 89,929 106% 352,307

NON-OP CAPITAL REVENUES

GRANTS - CAPITAL 1,181,142 2,500,000 (1,318,858) (53%) 3,000,000 TOTAL NON-OP CAPITAL REV 1,181,142 2,500,000 (1,318,858) (53%) 3,000,000

NET NON-OP CAPITAL SURPLUS (DEFICIT) 1,181,142 2,500,000 (1,318,858) (53%) 3,000,000

NET NON-OP SURPLUS (DEFICIT) 1,181,142 2,500,000 (1,318,858) (53%) 3,000,000

TOTAL NET SURPLUS (DEFICIT) (before Depr) 1,815,037 3,018,988 (1,203,951) 65% 3,645,339

TOTAL NET SURPLUS (DEFICIT) (after Depr) 1,570,284 2,799,214 (1,228,929) 54% 3,352,307

Report: Bud v Act Sum Printed Page 9 on: 10/31/2016 10:39 AM Row: Inc Stmt Acct Sum with Salaries Condensed Column: ACTUAL TO BUDGET 32 Port of Port Angeles SEKIU AIRPORT Account Summary: Budget to Actual Variance For the Nine Months Ending Friday, September 30, 2016 September 2016 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

HANGAR/TIE DOWN 10,600 11,475 (875) (8%) 15,300 UTILITY PASS THRU & PRODUCT SALES 450 450 0 0% 600 TOTAL OPERATING REVENUES 11,050 11,925 (875) (8%) 15,900 Error: over (under) all accts 0 0 0 0% 0

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 2,545 4,916 (2,371) (48%) 6,555 SUPPLIES 38 150 (112) (74%) 200 OUTSIDE SERVICES 2,700 3,900 (1,200) (31%) 5,200 RENT, UTILITIES, INSURANCE, TAXES 4,845 5,210 (366) (7%) 6,956 OTHER EXPENSES (Misc & Interdept) 0 75 (75) (100%) 100 MAINTENANCE LABOR & BENEFITS 5,491 3,779 1,712 45% 5,039 MAINTENANCE (Materials & Services) 762 9,825 (9,063) (92%) 13,100 TOTAL OPERATING EXPENSES 16,382 27,856 (11,474) (307%) 37,150 Error: over (under) all accts 0 0 0 (266%) 0

OPERATING SURPLUS (DEFICIT) (before Depr) (5,332) (15,931) 10,599 300% (21,250)

ALLOCATED EXPENSES 0 0 0 0% 0 DEPRECIATION (includes donated assets) 2,774 2,774 0 0% 3,699

OPERATING SURPLUS (DEFICIT) (after Depr) (8,106) (18,705) 10,599 300% (24,949) NET NON-OP SURPLUS (DEFICIT) 0 0 0 0% 0

TOTAL NET SURPLUS (DEFICIT) (before Depr) (5,332) (15,931) 10,599 300% (21,250)

TOTAL NET SURPLUS (DEFICIT) (after Depr) (8,106) (18,705) 10,599 300% (24,949)

Report: Bud v Act Sum Printed Page 11 on: 10/31/2016 10:39 AM Row: Inc Stmt Acct Sum with Salaries Condensed Column: ACTUAL TO BUDGET 33 Port of Port Angeles PA BOAT HAVEN (PABH) Account Summary: Budget to Actual Variance For the Nine Months Ending Friday, September 30, 2016 September 2016 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

WHARFAGE 27,022 4,500 22,522 500% 6,000 LABOR SERVICES / SECURITY FEE 2,010 0 2,010 0% 0 MOORAGE 811,267 776,775 34,492 4% 1,035,700 MARINA & YARD FEES 33,129 26,475 6,654 25% 35,300 EQUIPMENT RENTAL 6,850 12,000 (5,150) (43%) 16,000 LAND LEASE/RENT 6,493 4,650 1,843 40% 6,200 STRUCTURE LEASE/RENT 6,298 12,285 (5,987) (49%) 16,380 UTILITY PASS THRU & PRODUCT SALES 110,892 104,100 6,792 7% 138,800 MISC & INTERDEPT REVENUE 4,226 3,150 1,076 34% 4,200 TOTAL OPERATING REVENUES 1,008,187 943,935 64,252 519% 1,258,580 Error: over (under) all accts 0 0 0 512% 0

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 73,373 56,744 16,629 29% 75,659 SUPPLIES 16,921 11,625 5,296 46% 15,500 OUTSIDE SERVICES 157,423 131,550 25,873 20% 175,400 PUBLIC INFORMATION 3,361 3,750 (389) (10%) 5,000 MARKETING 875 3,750 (2,876) (77%) 5,000 ADS, DUES & PUBLICATIONS 1,488 1,500 (13) (1%) 2,000 TRAVEL MEETINGS 0 375 (375) (100%) 500 TRAVEL/TRAINING 98 750 (652) (87%) 1,000 RENT, UTILITIES, INSURANCE, TAXES 92,093 83,240 8,853 11% 110,996 UTILITY (Pass Thru) & COST OF GOODS SOLD 75,505 65,175 10,330 16% 86,900 OTHER EXPENSES (Misc & Interdept) 64 0 64 0% 0 MAINTENANCE LABOR & BENEFITS 43,837 56,939 (13,102) (23%) 75,918 MAINTENANCE (Materials & Services) 9,740 40,952 (31,212) (76%) 54,603 TOTAL OPERATING EXPENSES 474,776 456,350 18,427 (253%) 608,476 Error: over (under) all accts 0 0 0 (257%) 0

OPERATING SURPLUS (DEFICIT) (before Depr) 533,410 487,585 45,825 772% 650,104

ALLOCATED EXPENSES 0 0 0 0% 0 DEPRECIATION (includes donated assets) 262,634 263,405 (771) 0% 351,207

OPERATING SURPLUS (DEFICIT) (after Depr) 270,777 224,180 46,596 772% 298,897

NON-OP CAPITAL REVENUES

GRANTS - CAPITAL 331,544 314,700 16,844 5% 314,700 TOTAL NON-OP CAPITAL REV 331,544 314,700 16,844 5% 314,700

NET NON-OP CAPITAL SURPLUS (DEFICIT) 331,544 314,700 16,844 5% 314,700

NET NON-OP SURPLUS (DEFICIT) 331,544 314,700 16,844 5% 314,700

TOTAL NET SURPLUS (DEFICIT) (before Depr) 864,954 802,285 62,669 777% 964,804

TOTAL NET SURPLUS (DEFICIT) (after Depr) 602,320 538,880 63,440 777% 613,597

Report: Bud v Act Sum Printed Page 12 on: 10/31/2016 10:39 AM Row: Inc Stmt Acct Sum with Salaries Condensed Column: ACTUAL TO BUDGET 34 Port of Port Angeles JOHN WAYNE MARINA (JWM) Account Summary: Budget to Actual Variance For the Nine Months Ending Friday, September 30, 2016 September 2016 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

WHARFAGE 606 0 606 0% 0 MOORAGE 666,302 585,450 80,852 14% 780,600 MARINA & YARD FEES 39,414 32,775 6,639 20% 43,700 STRUCTURE LEASE/RENT 40,902 39,675 1,227 3% 52,900 UTILITY PASS THRU & PRODUCT SALES 172,065 241,500 (69,435) (29%) 273,000 MISC & INTERDEPT REVENUE 2,140 750 1,390 185% 1,000 TOTAL OPERATING REVENUES 921,430 900,150 21,280 194% 1,151,200 Error: over (under) all accts 0 0 0 191% 0

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 271,729 247,941 23,788 10% 330,588 SUPPLIES 7,818 10,050 (2,232) (22%) 13,400 OUTSIDE SERVICES 8,723 11,700 (2,977) (25%) 15,600 PUBLIC INFORMATION 1,089 3,750 (2,661) (71%) 5,000 MARKETING 235 3,750 (3,515) (94%) 5,000 ADS, DUES & PUBLICATIONS 1,724 600 1,124 187% 800 TRAVEL MEETINGS 70 375 (305) (81%) 500 TRAVEL/TRAINING 98 750 (652) (87%) 1,000 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 70 0 70 0% 0 RENT, UTILITIES, INSURANCE, TAXES 62,288 56,003 6,285 11% 74,671 UTILITY (Pass Thru) & COST OF GOODS SOLD 137,581 153,750 (16,169) (11%) 186,100 OTHER EXPENSES (Misc & Interdept) 9,600 6,000 3,600 60% 8,000 MAINTENANCE LABOR & BENEFITS 22,299 45,128 (22,830) (51%) 60,171 MAINTENANCE (Materials & Services) 29,958 27,477 2,481 9% 36,636 TOTAL OPERATING EXPENSES 553,280 567,275 (13,994) (165%) 737,466 Error: over (under) all accts 0 0 0 (162%) 0

OPERATING SURPLUS (DEFICIT) (before Depr) 368,149 332,875 35,274 358% 413,734

ALLOCATED EXPENSES 0 0 0 0% 0 DEPRECIATION (includes donated assets) 160,424 160,423 0 0% 213,898

OPERATING SURPLUS (DEFICIT) (after Depr) 207,725 172,452 35,274 358% 199,836 NET NON-OP SURPLUS (DEFICIT) 0 0 0 0% 0

TOTAL NET SURPLUS (DEFICIT) (before Depr) 368,149 332,875 35,274 358% 413,734

TOTAL NET SURPLUS (DEFICIT) (after Depr) 207,725 172,452 35,274 358% 199,836

Report: Bud v Act Sum Printed Page 14 on: 10/31/2016 10:39 AM Row: Inc Stmt Acct Sum with Salaries Condensed Column: ACTUAL TO BUDGET 35 Port of Port Angeles RENTAL PROPERTY Account Summary: Budget to Actual Variance For the Nine Months Ending Friday, September 30, 2016 September 2016 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

OTHER USER FEES 684 0 684 0% 0 LAND LEASE/RENT 43,085 36,994 6,092 16% 48,301 STRUCTURE LEASE/RENT 15,237 15,225 12 0% 20,300 USE AGMT AND OTHER RENT 175 0 175 0% 0 UTILITY PASS THRU & PRODUCT SALES 1,395 1,215 180 15% 1,620 TOTAL OPERATING REVENUES 60,577 53,434 7,143 31% 70,221 Error: over (under) all accts 0 0 0 18% 0

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 54,538 42,103 12,435 30% 56,137 SUPPLIES 140 900 (760) (84%) 1,200 OUTSIDE SERVICES 6,426 6,000 426 7% 8,000 PUBLIC INFORMATION 0 750 (750) (100%) 1,000 MARKETING 0 375 (375) (100%) 500 ADS, DUES & PUBLICATIONS 285 0 285 0% 0 TRAVEL MEETINGS 0 750 (750) (100%) 1,000 TRAVEL/TRAINING 538 1,875 (1,337) (71%) 2,500 RENT, UTILITIES, INSURANCE, TAXES 20,173 17,798 2,375 13% 23,731 UTILITY (Pass Thru) & COST OF GOODS SOLD 0 1,215 (1,215) (100%) 1,620 MAINTENANCE LABOR & BENEFITS 16,800 27,289 (10,489) (38%) 36,385 MAINTENANCE (Materials & Services) 6,343 11,250 (4,907) (44%) 15,000 TOTAL OPERATING EXPENSES 105,243 110,305 (5,062) (588%) 147,073 Error: over (under) all accts 0 0 0 (583%) 0

OPERATING SURPLUS (DEFICIT) (before Depr) (44,666) (56,871) 12,205 619% (76,852)

ALLOCATED EXPENSES 0 0 0 0% 0 DEPRECIATION (includes donated assets) 3,406 3,407 0 0% 4,542

OPERATING SURPLUS (DEFICIT) (after Depr) (48,072) (60,278) 12,205 619% (81,394) NET NON-OP SURPLUS (DEFICIT) 0 0 0 0% 0

TOTAL NET SURPLUS (DEFICIT) (before Depr) (44,666) (56,871) 12,205 619% (76,852)

TOTAL NET SURPLUS (DEFICIT) (after Depr) (48,072) (60,278) 12,205 619% (81,394)

Report: Bud v Act Sum Printed Page 15 on: 10/31/2016 10:39 AM Row: Inc Stmt Acct Sum with Salaries Condensed Column: ACTUAL TO BUDGET 36 Port of Port Angeles MECHANICAL MAINTENANCE Account Summary: Budget to Actual Variance For the Nine Months Ending Friday, September 30, 2016 September 2016 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 31,887 31,478 409 1% 41,971 SUPPLIES 20,689 16,500 4,189 25% 22,000 OUTSIDE SERVICES 14,511 4,725 9,786 207% 6,300 TRAVEL/TRAINING 1,625 2,400 (775) (32%) 3,200 RENT, UTILITIES, INSURANCE, TAXES 11,684 14,776 (3,092) (21%) 19,701 OTHER EXPENSES (Misc & Interdept) 0 250 (250) (100%) 250 MAINTENANCE LABOR & BENEFITS 21,133 38,141 (17,008) (45%) 50,855 MAINTENANCE (Materials & Services) 7,317 3,031 4,286 141% 4,041 TOTAL OPERATING EXPENSES 108,846 111,301 (2,455) 177% 148,318 Error: over (under) all accts 0 0 0 180% 0

OPERATING SURPLUS (DEFICIT) (before Depr) (108,846) (111,301) 2,455 (177%) (148,318)

ALLOCATED EXPENSES 0 0 0 0% 0 DEPRECIATION (includes donated assets) 20,221 20,222 (2) 0% 26,963

OPERATING SURPLUS (DEFICIT) (after Depr) (129,067) (131,523) 2,456 (177%) (175,281) NET NON-OP SURPLUS (DEFICIT) 0 0 0 0% 0

TOTAL NET SURPLUS (DEFICIT) (before Depr) (108,846) (111,301) 2,455 (177%) (148,318)

TOTAL NET SURPLUS (DEFICIT) (after Depr) (129,067) (131,523) 2,456 (177%) (175,281)

Report: Bud v Act Sum Printed Page 16 on: 10/31/2016 10:39 AM Row: Inc Stmt Acct Sum with Salaries Condensed Column: ACTUAL TO BUDGET 37 Port of Port Angeles FACILITIES MAINTENANCE Account Summary: Budget to Actual Variance For the Nine Months Ending Friday, September 30, 2016 September 2016 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 59,049 34,154 24,895 73% 45,539 SUPPLIES 30,137 35,363 (5,226) (15%) 47,150 OUTSIDE SERVICES 5,342 3,427 1,915 56% 4,570 PUBLIC INFORMATION 54 0 54 0% 0 ADS, DUES & PUBLICATIONS 1,336 1,050 286 27% 1,400 TRAVEL MEETINGS 258 0 258 0% 0 TRAVEL/TRAINING 7,979 4,144 3,835 93% 5,525 RENT, UTILITIES, INSURANCE, TAXES 15,827 14,800 1,027 7% 19,733 OTHER EXPENSES (Misc & Interdept) 4,171 3,300 871 26% 4,400 MAINTENANCE LABOR & BENEFITS 25,004 19,047 5,957 31% 25,396 MAINTENANCE (Materials & Services) 6,566 11,775 (5,209) (44%) 15,700 TOTAL OPERATING EXPENSES 155,723 127,060 28,663 254% 169,413 Error: over (under) all accts 0 0 0 232% 0

OPERATING SURPLUS (DEFICIT) (before Depr) (155,723) (127,060) (28,663) (254%) (169,413)

ALLOCATED EXPENSES 0 0 0 0% 0 DEPRECIATION (includes donated assets) 25,348 23,691 1,657 7% 31,588

OPERATING SURPLUS (DEFICIT) (after Depr) (181,071) (150,751) (30,320) (261%) (201,001) NET NON-OP SURPLUS (DEFICIT) 0 0 0 0% 0

TOTAL NET SURPLUS (DEFICIT) (before Depr) (155,723) (127,060) (28,663) (254%) (169,413)

TOTAL NET SURPLUS (DEFICIT) (after Depr) (181,071) (150,751) (30,320) (261%) (201,001)

Report: Bud v Act Sum Printed Page 17 on: 10/31/2016 10:39 AM Row: Inc Stmt Acct Sum with Salaries Condensed Column: ACTUAL TO BUDGET 38 Port of Port Angeles ADMINISTRATIVE & GENERAL Account Summary: Budget to Actual Variance For the Nine Months Ending Friday, September 30, 2016 September 2016 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 808,468 947,776 (139,308) (15%) 1,263,701 SUPPLIES 51,445 56,250 (4,805) (9%) 75,000 OUTSIDE SERVICES 292,145 344,302 (52,157) (15%) 459,069 PUBLIC INFORMATION 14,744 15,375 (631) (4%) 20,500 MARKETING 2,031 0 2,031 0% 0 COMMUNITY RELATIONS 2,933 0 2,933 0% 0 ADS, DUES & PUBLICATIONS 29,233 24,035 5,198 22% 32,046 TRAVEL MEETINGS 11,929 15,188 (3,259) (21%) 20,250 TRAVEL/TRAINING 20,014 36,294 (16,280) (45%) 48,392 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 503 0 503 0% 0 RENT, UTILITIES, INSURANCE, TAXES 101,269 98,890 2,378 2% 131,854 OTHER EXPENSES (Misc & Interdept) 1,495 7,500 (6,005) (80%) 10,000 CONTINGENCY 0 112,500 (112,500) (100%) 150,000 MAINTENANCE LABOR & BENEFITS 19,669 21,273 (1,604) (8%) 28,364 MAINTENANCE (Materials & Services) 5,458 4,725 733 16% 6,300 TOTAL OPERATING EXPENSES 1,361,334 1,684,107 (322,773) (257%) 2,245,476 Error: over (under) all accts 0 0 0 (238%) 0

OPERATING SURPLUS (DEFICIT) (before Depr) (1,361,334) (1,684,107) 322,773 257% (2,245,476)

ALLOCATED EXPENSES 0 0 0 0% 0 DEPRECIATION (includes donated assets) 17,543 17,546 (3) 0% 23,394

OPERATING SURPLUS (DEFICIT) (after Depr) (1,378,877) (1,701,652) 322,776 257% (2,268,870)

NON-OP CAPITAL REVENUES

GRANTS - CAPITAL 45,821 66,805 (20,984) (31%) 89,073 TOTAL NON-OP CAPITAL REV 45,821 66,805 (20,984) (31%) 89,073

NET NON-OP CAPITAL SURPLUS (DEFICIT) 45,821 66,805 (20,984) (31%) 89,073

NET NON-OP SURPLUS (DEFICIT) 45,821 66,805 (20,984) (31%) 89,073

TOTAL NET SURPLUS (DEFICIT) (before Depr) (1,315,513) (1,617,302) 301,789 225% (2,156,403)

TOTAL NET SURPLUS (DEFICIT) (after Depr) (1,333,056) (1,634,848) 301,792 225% (2,179,797)

Report: Bud v Act Sum Printed Page 18 on: 10/31/2016 10:39 AM Row: Inc Stmt Acct Sum with Salaries Condensed Column: ACTUAL TO BUDGET 39 Port of Port Angeles ECON DEV Account Summary: Budget to Actual Variance For the Nine Months Ending Friday, September 30, 2016 September 2016 Variance Report YTD YTD OVER (UNDER) OVER (UNDER) ANNUAL ACTUAL BUDGET BUDGET $ BUDGET % BUDGET OPERATING REVENUES

MISC & INTERDEPT REVENUE (8,370) 0 (8,370) 0% 0 TOTAL OPERATING REVENUES (8,370) 0 (8,370) 0% 0

OPERATING EXPENSES

SALARIES, WAGES & BENEFITS 123,979 94,564 29,414 31% 126,086 SUPPLIES 0 187 (187) (100%) 250 OUTSIDE SERVICES 504,505 576,000 (71,495) (12%) 768,000 PUBLIC INFORMATION 20,274 7,500 12,774 170% 10,000 MARKETING 9,838 15,000 (5,162) (34%) 20,000 COMMUNITY RELATIONS 0 3,750 (3,750) (100%) 5,000 ADS, DUES & PUBLICATIONS 3,550 7,481 (3,931) (53%) 9,975 TRAVEL MEETINGS 3,600 29,813 (26,212) (88%) 39,750 TRAVEL/TRAINING 5,129 1,875 3,254 174% 2,500 PROMOTIONAL HOSTING, TRADE & INDUSTRIAL DEV 2,061 5,625 (3,564) (63%) 7,500 RENT, UTILITIES, INSURANCE, TAXES 1,171 405 766 189% 540 TOTAL OPERATING EXPENSES 674,107 742,201 (68,093) 113% 989,601 Error: over (under) all accts 0 0 0 123% 0

OPERATING SURPLUS (DEFICIT) (before Depr) (682,477) (742,201) 59,723 (113%) (989,601)

ALLOCATED EXPENSES 0 0 0 0% 0 DEPRECIATION (includes donated assets) 0 0 0 0% 0

OPERATING SURPLUS (DEFICIT) (after Depr) (682,477) (742,201) 59,723 (113%) (989,601)

NON-OP CAPITAL REVENUES

GRANTS - CAPITAL 1,000,000 1,000,000 0 0% 1,000,000 TOTAL NON-OP CAPITAL REV 1,000,000 1,000,000 0 0% 1,000,000

NET NON-OP CAPITAL SURPLUS (DEFICIT) 1,000,000 1,000,000 0 0% 1,000,000

NET NON-OP SURPLUS (DEFICIT) 1,000,000 1,000,000 0 0% 1,000,000

TOTAL NET SURPLUS (DEFICIT) (before Depr) 317,523 257,799 59,723 (113%) 10,399

TOTAL NET SURPLUS (DEFICIT) (after Depr) 317,523 257,799 59,723 (113%) 10,399

Report: Bud v Act Sum Printed Page 19 on: 10/31/2016 10:39 AM Row: Inc Stmt Acct Sum with Salaries Condensed Column: ACTUAL TO BUDGET 40 Port of Port Angeles NON OPERATING REV & EXP Account Summary: Budget to Actual Variance For the Nine Months Ending Friday, September 30, 2016 September 2016 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

NON-OP GENERAL EXPENSES

ENVIRONMENTAL 745,165 300,000 445,165 148% 400,000 MISC NON OP EXPENSE 36,333 123,750 (87,417) (71%) 165,000 TOTAL NON-OP GENERAL EXP 781,498 423,750 357,748 78% 565,000 Error: over (under) all accts 0 0 0 (7%) 0

NET NON-OP GENERAL SURPLUS (DEFICIT) 820,052 (160,500) 980,552 7,338% (214,000)

NON-OP CAPITAL REVENUES

PROPERTY TAX RECEIPTS 1,090,333 1,090,500 (167) 0% 1,454,000 TOTAL NON-OP CAPITAL REV 1,090,333 1,090,500 (167) 0% 1,454,000

NON-OP CAPITAL EXPENSES

BOND COSTS & INTEREST EXPENSE 219,416 223,148 (3,732) (2%) 297,530 TOTAL NON-OP CAPITAL EXP 219,416 223,148 (3,732) (2%) 297,530

NET NON-OP CAPITAL SURPLUS (DEFICIT) 870,918 867,353 3,565 2% 1,156,470

NET NON-OP SURPLUS (DEFICIT) 1,690,970 706,852 984,118 7,340% 942,470

TOTAL NET SURPLUS (DEFICIT) (before Depr) 1,690,970 706,852 984,118 7,340% 942,470

TOTAL NET SURPLUS (DEFICIT) (after Depr) 1,690,970 706,852 984,118 7,340% 942,470

Report: Bud v Act Sum Printed Page 20 on: 10/31/2016 10:39 AM Row: Inc Stmt Acct Sum with Salaries Condensed Column: ACTUAL TO BUDGET 41 Port of Port Angeles Investment Report List of Securities by Maturity Date

Invest Invest Security Type Cost Basis Face Value Premium Market Unrealized Coupon Annual Est Yield Weighted Maturity Years to Weighted % of Callable Rating Acquisition ID No (Par Value) (Discount) Value Gain (Loss) int% Interest Int/Cost Est Yield Maturity Maturity Portfolio Date Cost Basis Umpqua Bank $ 3,984,689 $ 3,984,689 $ 3,984,689 14,345 0.360% 0.064% Current 0.08 0.01 18% No Not Rated LGIP LGIP 10,759,478 10,759,478 $ 10,759,478 53,421 0.497% 0.239% Current 0.08 0.04 48% No Not Rated 000040 PTP 3% 12/01/2016 PTP MUNI 141,050.70 135,000 6,051 135, 423 ( 16) 3.00% 4,050 1.05% 0.007% 12/1/2016 0.17 0.00 1% CALL-NO A- 7/31/2014 000011 PTB 4.35% 12/01/16 PTB MUNI 70,000.00 70,000 - 70,220 220 4.35% 3,045 4.35% 0.014% 12/1/2016 0.17 0.00 0% CALL-NO A1 5/18/2011 000012 PML 2.0% 12/01/16 PML MUNI 111,952.50 110,000 1,953 110, 106 ( 222) 2.00% 2,200 1.59% 0.008% 12/1/2016 0.17 0.00 1% CALL-NO A1 5/29/2012 000013 WHAUTL 1.5% 12/01/16 WHAUTL MUNI 300,000.00 300,000 - 300,315 315 1.50% 4,500 1.50% 0.020% 12/1/2016 0.17 0.00 1% CALL-NO A1 6/5/2012 000044 PTAPWR 3% 9/01/17 PTAPWR MUNI 105,327.00 100,000 5,327 101, 872 ( 32) 3.00% 3,000 0.90% 0.004% 9/1/2017 0.92 0.00 0% CALL-NO A1 2/5/2015 000047 SNOSCD 1.21% 12/1/17 SNOSCD MUNI 365,565.75 365,000 566 366,197 947 1.21% 4,417 1.15% 0.019% 12/1/2017 1.17 0.02 2% CALL-NO AA+ 4/8/2015 000014 PTB 4.75% 12/01/17 PTB MUNI 80,000.00 80,000 - 81,532 1, 532 4.75% 3,800 4.75% 0.017% 12/1/2017 1.17 0.00 0% CALL-NO A1 5/18/2011 000015 PML 2.0% 12/01/17 PML MUNI 136,408.05 135,000 1,408 135, 786 337 2.00% 2,700 1.80% 0.011% 12/1/2017 1.17 0.01 1% CALL-NO A1 5/29/2012 000016 PML 3.0% 12/01/17 PML MUNI 215,246.00 200,000 15,246 204, 684 ( 177) 3.00% 6,000 1.55% 0.015% 12/1/2017 1.17 0.01 1% CALL-NO A1 5/29/2012 000017 WHAUTL 1.75% 12/1/17 WHAUTL MUNI 405,000.00 405,000 - 408,110 3, 110 1.75% 7,088 1.75% 0.032% 12/1/2017 1.17 0.02 2% CALL-NO A1 6/5/2012 000051 FNMA .875% 07/27/18 FNMA USAGENCY 1,999,000.00 2,000,000 (1,000) 1,998,720 (1,280) 0.88% 17,500 0.90% 0.081% 7/27/2018 1.82 0.16 9% CALL-QTR AAA 7/27/2016 000046 PTAPWR 3% 9/1/18 PTAPWR MUNI 164,837.85 155,000 9,838 160, 837 551 3.00% 4,650 1.18% 0.009% 9/1/2018 1.92 0.01 1% CALL-NO A1 2/5/2015 000035 PACUTL 2% 09/01/18 PACUTL MUNI 400,000.00 400,000 - 404,372 4, 372 2.00% 8,000 2.00% 0.036% 9/1/2018 1.92 0.03 2% CALL-NO AA 4/23/2014 000018 PTB 5.0% 12/01/18 PTB MUNI 75,000.00 75,000 - 77,834 2, 834 5.00% 3,750 5.00% 0.017% 12/1/2018 2.17 0.01 0% CALL-NO A1 5/18/2011 000019 PML 3.0% 12/01/18 PML MUNI 370,526.55 345,000 25,527 359, 514 3, 702 3.00% 10,350 1.79% 0.030% 12/1/2018 2.17 0.04 2% CALL-NO A1 5/29/2012 000020 PTB 5.25% 12/01/19 PTB MUNI 70,000.00 70,000 - 73,806 3, 806 5.25% 3,675 5.25% 0.016% 12/1/2019 3.17 0.01 0% CALL-NO A1 5/18/2011 000021 PML 3.0% 12/01/19 PML MUNI 379,626.35 355,000 24,626 376, 197 8, 875 3.00% 10,650 2.00% 0.034% 12/1/2019 3.17 0.05 2% CALL-NO A1 5/29/2012 000022 PTB 5.75% 12/01/20 PTB MUNI 115,000.00 115,000 - 125,044 10, 044 5.75% 6,613 5.75% 0.030% 12/1/2020 4.17 0.02 1% CALL-NO A1 5/18/2011 000023 PML 3.0% 12/01/20 PML MUNI 63,370.20 60,000 3,370 64, 544 2, 660 3.00% 1,800 2.27% 0.006% 12/1/2020 4.17 0.01 0% CALL-NO A1 5/29/2012 000024 DOUSCD 6.26% 12/1/30 DOUSCD MUNI 2,000,000.00 2,000,000 - 2,266,840 266, 840 6.26% 125,140 6.26% 0.561% 12/1/2030 14.18 1.27 9% CALL-NO AA1 12/23/2010

Total 22,312,078 22,219,167 92,911 22,566,119 308,416 Average Weighted Yield 1.269% Above Values as of 0 9/30/2016 Annual Interest 300,692 Average Weighted Maturity 1.75 years Cost Basis Face Value Jan - Mar 2016 April - June 2016 July - Sept 2016 Oct - Dec 2016 CALL-ONE - - Benchmark Rates 12/28/2012 12/31/2013 12/31/2014 12/31/2015 Min Rate Max Rate Min Rate Max Rate Min Rate Max Rate Min Rate Max Rate CALL-ANY - - Bank Rate 0.200% 0.200% 0.200% 0.200% 0.230% 0.380% 0.360% 0.380% 0.360% 0.360% CALL-QTR 1,999,000 2,000,000 LGIP (Local Govt Investment Pool) 0.235% 0.128% 0.104% 0.250% 0.386% 0.449% 0.424% 0.498% 0.482% 0.517% Total Callable 1,999,000 2,000,000 90 Day T-Bill 0.010% 0.070% 0.040% 0.160% 0.200% 0.360% 0.190% 0.350% 0.180% 0.370% 1 Year T-Note 0.150% 0.130% 0.205% 0.650% 0.430% 0.710% 0.450% 0.700% 0.440% 0.630% 2 Year T-Note 0.270% 0.380% 0.670% 1.060% 0.640% 1.040% 0.580% 0.920% 0.560% 0.840% 3 Year T-Note 0.360% 0.780% 1.100% 1.310% 0.640% 1.320% 0.700% 1.080% 0.660% 0.960% 5 Year T-Note 0.720% 1.750% 1.650% 1.760% 1.110% 1.730% 1.000% 1.410% 0.940% 1.260%

Earnings Above LGIP 2012 2013 2014 1st Qtr 2015 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 Fund Balance (Cost Basis) $ 16,792,320 $ 16,898,421 $ 20,015,120 $ 14,694,364 $ 15,400,000 $ 22,312,078 Avg LGIP Rate 0.2350% 0.1400% 0.0998% 0.4182% 0.4502% 0.4965% Earnings if 100% in LGIP $ 39,462 $ 23,658 $ 19,975 $ 61,447 $ 69,331 $ 110,779 $ - Avg Weighted Yield 1.8240% 1.8060% 1.5500% 2.0090% 1.5550% 1.2690% Earnings from Investments $ 306,291 $ 305,185 $ 310,234 $ 295,210 $ 239,470 $ 283,140 $ - Annual Invest Earnings > LGIP $ 266,829 $ 281,528 $ 290,259 $ 233,763 $ 170,139 $ 172,361 $ -

O:\Admin\Commission 11-7-2016 Work Session\Investments as of 09-30-16.xlsx, Investments as of 09-30-16.xlsx 42 Page 1 of 16 Port of Port Angeles Investment Report List of Securities by Maturity Date

Longer-Term Investments (maturity > 5 yrs, which is year 2022) Unrealized Cost Basis Market Value Gain (Loss) Maturity DOUSCD 6.26% 12/1/30 $ 2,000,000 $ 2,266,840 $ 266,840 12/1/2030

$ 2,000,000 $ 2,266,840 $ 266,840 Percent of Portfolio 9.0% 10.0% 86.5%

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.

% of % of Policy Max at Cost Basis Market Value Portfolio Portfolio Limits Purchase Broker Cost Market Per Investment Policy Resolution 10-987 LGIP 10,759,478 10,759,478 48% 48% ok 50% Local Government Investment Pool (WA State Treasury Management Services) Umpqua 3,984,689 3,984,689 18% 18% ok 25% in a single financial institution - Roth USAgency 1,999,000 1,998,720 9% 9% ok 60% in any one US Government Agency - Piper Muni 5,568,911 5,823,232 25% 26% ok 60% no limit for state & local municipal bonds; assume US Government Agency limit ok 80% US Treasury 22,312,078 22,566,119 100% 100% - - Purchases Cost Basis Face Value Prem (Disc) Market Value Comments

1st Qtr Purchases - - - - No purchases, moneys needed for K-Ply cleanup and other capital projects 2nd Qtr Purchases - - - - No purchases, moneys needed for K-Ply cleanup and other capital projects 3rd Qtr Purchases 1,999,000 2,000,000 (1,000) 1,998,720 4th Qtr Purchases - - - - Total Purchases 1,999,000 2,000,000 (1,000) 1,998,720

Redemptions & Transfers Cost Basis Trans Amt Realized Gain (Loss) 1st Qtr redemptions - - - 2nd Qtr redemptions 3,003,000 3,000,000 (3,000) 3rd Qtr redemptions 752,313 740,000 214 4th Qtr redemptions - - - Total Redemptions 3,755,313 3,740,000 (2,786)

Investment Policy Exception Tracking Meeting 11-13-12: As of 9-30-12 Investments greater than 5 years; Douglass County Schools greater than 10 years; all "A" rated investments Meeting 11-13-12: Port of Pasco "A" rated bonds. Also revised investment policy to allow purchase of securities carrying one of the three highest credit ratings Meeting 08-11-15: Commission approved exception of Umpqua Bank holdings at 26% instead of 25% based on uncertainty of $1.8 million insurance recovery, and $1 million called bond on 6/29/15.

O:\Admin\Commission 11-7-2016 Work Session\Investments as of 09-30-16.xlsx, Investments as of 09-30-16.xlsx 43 Page 2 of 16 Port of Port Angeles Investment Report Diversfication By Maturity Date 9/30/2016 Policy: 9/30/2021 ≤ 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 2016 Budget* * Budget reduced for special $615k economic development contract with CRTC $ 7,665,475 Minimum cash is 12 months operating expenses based on budget. 1,730,931 Operating Cash accounts 14,744,167 Investments with "Current" maturity (LGIP and Umpqua)

Available % of 16,475,098 Cash Average Portfolio Cost by Year Equivalents Maturity Est Yield Cost Cost Basis of Maturity 8,809,623 Excess Current 0.428% $ 14,744,167 66% $ 14,744,167 2016 Q4 2.123% $ 623,003 3% $ 623,003 2017 Q3 0.900% $ 105,327 0% Year 2017 2017 Q4 2.200% $ 1,202,220 5% $ 1,307,547 2018 Q3 1.360% $ 2,563,838 11% Year 2018 2018 Q4 3.395% $ 445,527 2% $ 3,009,364 2019 Q4 3.625% $ 449,626 2% $ 449,626 2020 Q4 4.010% $ 178,370 1% $ 178,370 2030 Q4 6.257% $ 2,000,000 9% $ 2,000,000 Grand Total 2.438% $ 22,312,078 100% $ 22,312,078

- -

Cost By Year of Maturity $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- Current 2016 2017 2018 2019 2020 2030

Maturity Year

O:\Admin\Commission 11-7-2016 Work Session\Investments as of 09-30-16.xlsx, Investments as of 09-30-16.xlsx 44 Page 3 of 16 Port of Port Angeles Investment Report Diversification By Issuer 9/30/2016 Policy: no more than 25% in single financial institution LGIP limited to 50% or less US Treasury may compose 80% US Govt Agency no more than 60% in one agency

- -

% of Portfolio Rating Issuer Cost Cost Basis NR LGIP $ 10,759,478 48% NR Umpqua $ 3,984,689 18% - A PTB $ 410,000 2% A PML $ 1,277,130 6% A PTP $ 141,051 1% A PTAPWR $ 270,165 1% AA PACUTL $ 400,000 2% A WHAUTL $ 705,000 3% AA DOUSCD $ 2,000,000 9% AA SNOSCD $ 365,566 2% AA FNMA $ 1,999,000 9% Grand Total $ 22,312,078 100%

Entered

Cost % of Portfolio Cost Basis By Issuer FNMA SNOSCD 9% DOUSCD2% 9%

LGIP WHAUTL 48% 3% PACUTL PTAPWR2% 1% PTP PTB Umpqua 0% PML 2% 18% 6%

Values

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% of Portfolio Type Cost Avg Est Yield Cost Basis LGIP $ 10,759,478 0.497% 48% Bank $ 3,984,689 0.360% 18% MUNI $ 5,568,911 2.731% 25% USAGENCY $ 1,999,000 0.900% 9% Grand Total $ 22,312,078 2.438% 100%

Cost Avg Est Yield% of Portfolio Cost Basis By Type of Investment

USAGENCY 9%

MUNI LGIP 25% 48%

Bank 18%

Values

O:\Admin\Commission 11-7-2016 Work Session\Investments as of 09-30-16.xlsx, Investments as of 09-30-16.xlsx 46 Page 5 of 16 Port of Port Angeles Investment Report Diversification by Rating of Investment 9/30/2016

NR = NonRated, which is a qualified public depository by PDPC (Public Deposit Protection Commission)

- -

% of Portfolio Rating Cost Avg Est Yield Cost Basis NR $ 14,744,167 0.428% 66% A $ 2,803,345 2.655% 13% AA $ 2,765,566 3.136% 12% AAA $ 1,999,000 0.900% 9% Grand Total $ 22,312,078 2.438% 100%

Cost Avg Est Yield% of Portfolio Cost Basis By Rating

AAA 9% AA 12%

A 13% NR 66%

Values

O:\Admin\Commission 11-7-2016 Work Session\Investments as of 09-30-16.xlsx, Investments as of 09-30-16.xlsx 47 Page 6 of 16 ITEM FOR DISCUSSION BY THE BOARD OF PORT COMMISSIONERS

November 7, 2016

Subject: FIA Apron Project Delay

Presented by: Jerry Ludke, Airport & Marina Manager

BACKGROUND: On June 27, 2016 the Commission awarded the airport apron construction project to Lakeside Industries for $1,071,772.21. Due to delays in federal grant funding, a notice to proceed was not issued until September 6th. Following four days of site prep, construction began in earnest the week of September 12th with paving scheduled for the last full week of October.

ANALYSIS: Construction proceeded on schedule through October 20th, but heavy rainfall in late October saturated the soil to the extent that the required compaction of the base course prior to paving could not be accomplished.

The construction management consultant, Reid Middleton, Port staff and the FAA agree that conditions are unlikely to improve in the near term and that the project should be put on hold until late spring or summer of next year.

ENVIRONMENTAL IMPACT: None.

FISCAL IMPACT: For work done through 10/25/2016, Lakeside Industries has been paid $628,120 or about 60% of the project total.

Project winterization costs are estimated at $10,000 for placing a 5% shoulder slope on Taxiway Alpha; hydro-seeding disturbed areas; installing blue edge reflectors along the taxiway; and periodically replacing batteries in barricades that mark the project boundary.

De-winterization costs next year will include excavation and removing hydro-seeding and the temporary shoulder placed along Taxiway Alpha. These costs have not been estimated and are dependent on the condition of the soil following the rainy season.

Reid Middleton and Port staff anticipate these additional costs will qualify for 90% FAA funding, but an FAA agreement to that effect has not been finalized.

DESIRED COMMISSION INPUT OR FEEDBACK: This is provided for information purposes. The completion of the FIA apron project will be delayed until the summer of 2017.

48 ITEM FOR DISCUSSION BY THE BOARD OF PORT COMMISSIONERS

November 7, 2016

SUBJECT: Washington State Department of Transportation (WSDOT) Aviation Division

Presented by: Jerry Ludke, Airport & Marina Manager

BACKGROUND:

Airports are vital to Washington State, fueling its economy and providing critical links to the state and national transportation system. WSDOT’s mission is to foster the development of aeronautics and the state’s aviation system to support sustainable communities and statewide economic vitality. Key programs include: • Airport investments (grants and capital improvement programs) • Aviation system and land use planning • Aircraft registration • Aviation emergency services • WSDOT-managed airports (16)

Each year WSDOT’s Airport Aid Grant Program provides crucial financial assistance to many of the state’s 135 public airports. Through its grant program WSDOT Aviation leverages millions of dollars in federal grants by using a relatively minimal amount of state (5%) and local match (5%) contributions for FAA-funded (90%) projects.

WSDOT Airport Aid grant funds may be used for the planning, acquisition, construction, improvement and maintenance of airports. The maximum amount WSDOT Aviation can award to an individual sponsor in a single grant is $250,000.

During the first round of the 2015-2017 biennium, WSDOT awarded nearly $2 million in state grants to 45 airports for 60 different projects, including two projects at William R. Fairchild International Airport: the Master Plan Update and the apron project.

WSDOT has also provided funding at the Sekiu Airport for a runway maintenance application (slurry seal) in 2008 and an airport layout plan (ALP) in 2013.

The WSDOT Aviation management team is led by Tristan Atkins, Director of Aviation, and Robert Hodgman, Senior Planner.

Mr. Hodgman joined WSDOT in April 2012 after completing more than 24 years in Army Aviation and Military Capital Facilities Management. He has an extensive background in aviation operations and facilities construction throughout Washington State. He holds a Bachelor’s degree in Business Administration from Pacific Lutheran University and a Master’s in Business Administration from St. Martin’s University.

49 ANALYSIS:

Topics for discussion include: • Opportunities and challenges at Fairchild Airport relating to commercial air service • Emergency preparedness related to the Cascadia subduction zone • Challenges of unmanned aircraft systems (UAS) integration o Vision/thoughts/concerns for drone aircraft growth (expectation of 1.3M drones by 2020 with a need to access airports). o What can airports do to prepare for UAS.

FISCAL IMPACT: Not applicable

DESIRED COMMISSION INPUT OR FEEDBACK: For discussion

50 Future Agenda Items – Work Session (9:00 a.m. unless otherwise noted) 11/7/2016 Commission Meeting

November 14, 2016 (regular meeting) • TAC Presentation/Update • MAC Presentation/Update • Economic Development Services Agreement—CRTC • Stormwater discussion • Governance: Delegation of Authority

November 21, 2016 • No Commission meeting (after WPPA Conference)

November 28, 2016 (regular meeting) • No Commission meeting on Monday after Thanksgiving

December 5, 2016 (Special meeting) • Duane Fladland, WSBDC Director visit (tentative) • Barge study presentation

Announcements • …

Future • Governance: Employee Handbook and resolutions • Lease Policy Considerations (Chris Riffle) • Lease rate setting process and publication of rates • CLT Construction Event Planning (Timber Advisory Committee) • CRTC, EDC & SBDC Quarterly presentations (Jan 9) coordinate with County • Master plan "Vision" of different Port properties (purchase and sale opportunities) • Consultant contract template review and process for commission guidance

51 Future Agenda Items – Business Meeting (1:00 p.m. unless otherwise noted) 11/7/16 Commission Meeting

November 14, 2016 (regular meeting) • Monthly Report—October 2016 • Public Hearing 2017 budget and tax levy (Time Specific 1:30 PM) • Formal adoption of 2017 budget and tax levy • Peninsula College Month-to-Month Lease Amended & Restated • Pump Purchase • T 3 Asphalt Project delay • T 1 Change order • CRTC Oven Lease revision

November 21, 2016 • No Commission Meeting

November 28, 2016 (regular meeting) • No Commission meeting on the Monday after Thanksgiving

December 5, 2016 (Special Meeting) • EDC Economic Development Services Agreement for 2017 • CRTC Economic Development Services Agreement for 2017 • Resolution—Appreciation Rod Fleck • Resolution—Appreciation Bill Peach

Announcements • WPPA Annual Conference November 16-18, 2016…

Future • JWM Olympia Oyster Restoration Agreement Extension • CRTC Term Lease at 2220 W. 18th Street • Peninsula College Term Lease at 2220 W. 18th Street • Special Meetings: Hold meeting at JWM o Consider joint meeting with City of Sequim if we can identify topics • Special Meeting: Joint meeting with Clallam County o Cross-public entity effort (Council of Governments); set 1 to 3 top community goals o Share quarterly Reports: EDC Report, SBDC Report, CRTC updates o Timber Advisory Committee, FIA Master Plan update, MTIP update o Emergency preparedness planning • Special Meetings: Joint meeting with other public agencies in each district • Special Meetings: Joint meeting with Lower Elwha Klallam Tribe • Environmental Management System (EMS)