EXECUTIVE DIRECTOR S REPORT TO THE PORT OF PORTLAND COMMISSION FOR NOVEMBER 2015

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1 EXECUTIVE DIRECTOR S REPORT TO THE PORT OF PORTLAND COMMISSION FOR NOVEMBER 2015 SAFETY REPORT October 2015 claims frequency had a significant increase in the Port of Portland s safety performance with nine claims incurred from the twelve total reported incidents. There was a total of four lost-time claims and two restricted-duty cases. There were two additional recordable incidents reported in October 2015 that occurred in August and September of 2015, both of which became claims. Calendar year-to-date claims for 2015 exceed the total claims of Monthly Report of Injury Incidents Administrative There were two recordable incidents: An employee strained her back while pulling files from shelving. Worker s vehicle was parked in the employee surface lot on the auxiliary side where rental car companies also stage vehicles. One of the companies painted a question mark on his windshield. He cut his hand while using a glass scraper to remove the mark. Aviation There were three lost-time recordable, one restricted-duty recordable, two recordable and two non-recordable incidents: An employee experienced upper back pain while removing debris with a backpack blower. A police officer injured her hand when attempting to arrest a suspect who resisted. An employee cut two fingers of his right hand upon contact with a sharp piece of metal while cleaning a machine. An employee reported back strain while climbing down a ladder and twisting to reach a bucket on the catwalk. Note: Occurred in September 2015, reported in October An employee was startled by a swarm of bees while opening an irrigation valve. He slipped and fell, spraining his index finger. Note: Occurred in August 2015, reported in October An employee reported injuring his big toe while using his foot to engage the safety stops on a revolving door while assisting a mother with a stroller. An employee suffered a puncture injury to his hand while extracting a red-tailed hawk from a carrier. A police officer reported knee soreness during a three-day bicycle training course.

2 Marine There was one restricted duty recordable incident: An employee experienced a back spasm while bending to wash his hands. Prior to this he had been lifting boxes during his shift. Navigation There was one lost time recordable incident: An employee was using a hammer during a pump clean and sustained a thigh injury when a metal fragment broke loose and struck him. An employee was hit by a bolt component in the upper arm during a pump clean. An employee strained his wrist while pushing over the starboard swing wire. 2

3 AVIATION REPORT Passengers per Month 2, % 180% 2, % 1,500 1, % 120% 100% 80% 60% 40% 20% 0 0% Nov-13 Dec-13 Jan-14 Feb-14 Passengers (thousands) Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Seats Passengers Load Factor October passenger volumes increased 9.4 percent compared to October Seat capacity increased 9.8 percent, with the load factor falling 0.4 points to This October records the highest level of seat capacity the airport has seen in the fall, facilitating record passenger growth. 3

4 Cargo Tons per Month Cargo Carried by Air Cargo Carriers Tons (Thousands) Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Cargo volumes increased 1.1 percent compared to October FedEx increased 0.5 percent to 10,312 tons and UPS increased 2.2 percent to 5,911 tons. 4

5 Parking Revenue by Lot Revenue (thousands) $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 2,000 1,800 1,600 1,400 1,200 1, Passengers (thousands) $0 0 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Passengers Garage Valet L.T. Econ. Total Excludes coupons & employee lots *Includes valet revenue Public parking revenue was $5,638,170, up 8.8 percent over October Other indicators also reflected strong growth: transactions were up 9.0 percent, parking occupancy was up 6.5 percent and economy lot shuttle bus passengers were up 7.8 percent. The negative long-term garage revenue and strong positive short-term garage revenue is in part due to the use of Level 7 in the short-term garage as short-term parking instead of allowing long-term customers access to that section. 5

6 Concessions Revenue $1,400,000 2,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 1,800 1,600 1,400 1,200 1, Passengers (thousands) $0 0 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Passengers Food Retail Total Food/Retail In this eighth month of concessions transition, combined retail and food and beverage operations reported a 10.5 percent, or $110,000, rent increase on the month, against a 9.4 percent passenger increase. Rent performances from new operators of $226,000 offset last year s rents from previous operators of $111,000, by percent. Additionally, rent increases totaling 9.0 percent, or $11,000, from Capers Café and Starbucks, associated with seasonal sales promotions and improved operational performance, helped to generate this overall rent performance. 6

7 Rental Car Revenue $3,000,000 2,000 $2,500,000 1,800 1,600 $2,000,000 $1,500,000 $1,000,000 1,400 1,200 1, Passengers (thousands) $500,000 $0 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct Passengers Rental Car Rental car operations reported a 6.5 percent, or $103,000, rent decrease on the month compared to last year, against a passenger increase of 9.4 percent. This reflects a combination of over-estimated accruals in Fiscal Year 2015, and under-stated accruals in Fiscal Year Upon further review, it is anticipated that actual revenue growth on the month will be approximately 4.5 percent year-to-date, after including adjustments for October. It is estimated that rental car operations are generating a 4.0 percent increase over last year. CAPITAL GRANTS Portland International Airport Staff submitted a reimbursement request to the Transportation Security Administration for the Law Enforcement Officer program in the amount of $12,000 (Agreement No. HSTS0213HSLR118). Staff submitted a reimbursement request to the Federal Bureau of Investigation (FBI) for the Joint Terrorism Task Force program in the amount of $3,039 (Agreement No ). Hillsboro Airport Staff submitted reimbursement request to the Oregon Department of Transportation (ODOT) for ConnectOregon III - HIO 12L/30R & Taxiway D project in the amount of $29,288 (Agreement #26905). 7

8 Marine Staff submitted a reimbursement request to Oregon Department of Transportation (ODOT) for the ConnectOregon III Terminal 6 (T-6) Crane Upgrade project in the amount of $9,381 (Agreement No ). Staff submitted reimbursement request to ODOT for the ConnectOregon IV T-6 Wharf Optimization project in the amount of $10,100 (Agreement No ). Staff submitted reimbursement request to ODOT for the ConnectOregon V T-6 Crane Drive Electronics project in the amount of $1,612 (Agreement No ). Property Staff submitted a reimbursement request to the City of Gresham for the Gresham Vista Business Park Eco-Industrial Green Master Plan in the amount of $35,000. MARINE & INDUSTRIAL DEVELOPMENT REPORT The figures in the table below show change relative to the prior year. October 2015 Fiscal Year-to-Date Total Tonnage -33.9% -41.9% Containers (TEU) -98.4% -98.0% Import Full Containers % % Export Full Containers -95.9% -94.2% Breakbulk % -66.0% Autos -11.4% 17.5% Mineral Bulk -28.0% -25.8% Grain -11.3% -39.0% # of Units Automobile - Exports and Imports 30,000 25,000 20,000 15,000 10,000 5,000 0 Jan 2014 Jul Jan 2015 Jul Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total ,427 20,530 19,639 16,641 26,381 18,251 24,605 26,677 20,577 18, ,717 Mo/Mo % Change -22% 22% -8% -33% 27% -26% 24% 46% 16% -11% CY/CY % Change -22% -2% -4% -13% -5% -9% -4% 1% 3% 1% 8

9 Short Tons 600,000 Bulk Cargoes Mineral Bulks Grain 500, , , , ,000 Total Bulks 0 Jan 2014 Jul Jan 2015 Jul 000's of Short Tons Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total ,231 Mo/Mo % Change 8% -19% -24% -4% -41% -42% -57% -51% -2% -20% CY/CY % Change 8% -7% -13% -11% -16% -21% -25% -28% -25% -25% # of Moves Containers & TEUs - Terminal 6 Exports (in TEUs) Imports (in TEUs) 10,000 Ttl # of Containers 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Jan 2014 Jul Jan 2015 Jul Containers Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total ,352 4,642 3, ,313 Mo/Mo % Change -48% -43% -57% -97% -98% -98% -98% -98% CY/CY % Change -48% -45% -49% -60% -78% -80% -82% -84% 9

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11 Operations Terminal 6 The Port is working with Auto Warehousing Company (AWC) and Transdevelopment on plans to develop the 19-acre lot across from Marine Drive to give AWC flexibility to handle increased Ford export business and new import growth. Transdevelopment has completed a preliminary design. The Port and AWC have signed a Letter of Intent and will proceed with the ConnectOregon VI application for this project. Trade and Logistics The Port continues to work with the four agency team leading the Governor s Trade and Logistics initiative to find interim solutions for Oregon farmers and manufacturers impacted by the loss of weekly Transpacific container service through Terminal 6. In November, the Port, the initiative team and shippers provided briefings on the initiative to the Port Commission, Oregon Transportation Commission, Senate Interim Committee on Business and Transportation, and the House Interim Committee on Transportation and Economic Development. A shippers meeting was held on November 13 with over 70 participants. A draft report on the proposed solutions is under development. The Port is actively working on interim solutions, including expansion of the Westwood service, Rivergate container storage lots and the upriver barge-rail shuttle. Environmental Cost-sharing agreements were finalized in early November to fund approximately $5 million to complete the engineering assessment of the levees and flood management system along the south shore of the Columbia River in the Portland Metro area. This regional effort to gain system re-accreditation is now branded as Levee Ready Columbia, Flood Protection for the Portland Community. All affected government jurisdictions are participating with affected landowners in the costsharing agreements, including: drainage districts (Sauvie Island Drainage Improvement Company, Peninsula 1 and 2, Multnomah County Drainage District and Sandy Drainage Improvement Company); municipalities (Cities of Portland, Fairview and Troutdale); regional partners (the Port and METRO); Multnomah County and the State of Oregon. This shared funding agreement demonstrates the successful collaboration at the local level that the U.S. Army Corps of Engineers expects as they formally consider adding federal funds to this levee re-accreditation program. Industrial Development At Portland International Center, Capstone Partners continues with construction of its third building as a part of its PDX Logistics Center. Buildings 1 and 2 are fully leased. Building 3 will be 355,000 square feet with completion anticipated in the spring of Port staff are in active discussions with Capstone regarding the third phase of their development, which is proposed to include two additional buildings totaling approximately 250,000 square feet. That ground lease is proposed to be brought to the Port Commission in February

12 REAL ESTATE TRANSACTIONS EXECUTED PURSUANT TO DELEGATED AUTHORITY Portland Water Bureau Temporary Access and Construction Easement Location: Swan Island Industrial Park Term: Effective October 30, 2015 Use: Grants City of Portland Water Bureau the right to access Port property leased to Daimler to install a water supply system. Portland Water Bureau Water Facility Easement Location: Swan Island Industrial Park Term: Effective October 28, 2015 Use: Grants City of Portland Water Bureau the right to construct and maintain a water supply system on Port property leased to Daimler. Allegiant Air, LLC Letter of Authorization Location: PDX Term: Effective October 23, 2015 Use: This letter allows Allegiant Air to operate at PDX under Ordinance 433-R. Oxnard Cats Entertainment, LLC Permit and Right-of-Entry for Photography and Filming Location: PDX Term: Effective 10/28/2015 Use: Permit for filming on October 28, 2015, in various areas of the airport. Cascade Coil Drapery, Inc. Permit and Right-of-Entry for Photography and Filming Location: PDX Term: Effective October 29, 2015 Use: Permit for filming on October 29, 2015 in various areas of the airport. State of Oregon Department of State Lands Submerged and Submersible Land Lease Location: West Hayden Island Term: May 1, 2015 to April 30, 2020 Use: Lease with DSL for spud barge areas currently occupied by Tidewater Barge. Area will be subleased to Tidewater for continuation of their mooring activities. Bulkogi, dba Bulkogi Fusion Food Cart Permit Location: PDX Term: December 5, 2015 to June 2, 2015 Use: Short-term permit for a food cart in the Oregon Market at PDX. 12

13 AVIATION DIVISION FINANCIAL REPORT October 2015 PDX Current Year-to-Date Annual Year-to-Date Actual Amounts Adopted Budget Actual Amounts % Variance Adopted Budget Current Year Prior Year % Variance Total Passengers (in millions) % % Landed Weight (Sig & Non Sig lbs. in millions) % % Operations N/A 77,685 N/A N/A 77,685 78, % Parking Transactions: Valet N/A 5,120 N/A N/A 5,120 3, % Parking Transactions: Long-term (P2) Garage N/A 114,465 N/A N/A 114, , % Parking Transactions: Garage N/A 504,717 N/A N/A 504, , % Parking Transactions: Economy Lot N/A 154,175 N/A N/A 154, , % Parking Transactions: Total N/A 778,477 N/A N/A 778, , % Cost per Enplaned Passenger (Rent & Landing Fees) $ AIRLINE COST CENTER (ALCC) (in millions) Airline Rent, Landing Fees & Other $38.3 $ % $111.2 $39.1 $ % Retail, Food & Beverage % % Other Non-Airline % % TOTAL REVENUE $45.0 $ % $129.9 $46.1 $ % Personnel Services $11.4 $ % $34.6 $11.0 $ % Materials, Services & Other % % TOTAL EXPENSES $27.4 $ % $82.4 $25.7 $ % Debt Service & Coverage $15.9 $ % $47.6 $15.7 $ % less: Interest Income % TOTAL NON-OPERATING $15.9 $ % $47.7 $15.7 $ % SURPLUS/(DEFICIT) $1.7 $ % ($0.2) $4.7 $ % PORT COST CENTER (PCC) (in millions) Parking $19.8 $ % $59.1 $20.8 $ % Rental Cars % % Other % % TOTAL REVENUE $35.2 $ % $98.0 $36.7 $ % Personnel Services $4.7 $ % $14.0 $4.5 $ % Materials, Services & Other % % TOTAL EXPENSES $13.8 $ % $38.9 $12.8 $ % Debt Service & Coverage $6.0 $ % $17.9 $5.9 $ % less: Interest Income (0.2) (0.2) 0.0% (0.6) (0.2) (0.2) 0.0% TOTAL NON-OPERATING $5.8 $ % $17.3 $5.7 $ % LESS: REVENUE SHARING $3.5 $ % $10.5 $3.5 $ % INCOME $12.1 $ % $31.3 $14.7 $ % General Aviation Adopted Budget Current Year-to-Date Annual Year-to-Date Actual Amounts Actual % Adopted Current Amounts Variance Budget Year Prior Year % Variance TOTAL REVENUE 1,118,361 1,197, % $3,434,800 $1,197,575 $1,106, % TOTAL EXPENSE 1,292,139 1,302, % 3,652,709 1,302,707 1,378, % OPERATING INCOME (EXCL. DEP) ($173,778) ($105,132) -39.5% ($217,908) ($105,132) ($272,465) -61.4%

14 COMMENTS BUDGET- This report compares actual amounts against the adopted budget. ACTIVITY YTD passenger traffic exceeded the prior year by 7.8%, landed weight by 6.0%, and parking transactions by 7.9% AIRLINE COST CENTERS (ACC) ACC Revenues are ~$800K higher than budget due to higher than expected common use rentals (over ~$310K), landing activity (over ~$260K), and leased terminal space (over ~$225K). Other Non-Airline Revenues are ~$300K higher than budget as a result of higher Atlantic Aviation (over ~$80K), Boeing (over ~$40K), and "other concession" (over ~$30K) revenues. PORT COST CENTERS (PCC) Parking Revenues are ~$1.0M over budget due to higher passenger volume and higher than expected parking activity. Rental Car Revenues are lower than budget by ~$300K due to lower than budgeted rental activity for National, Dollar, and Budget. Other PCC revenues are~$800k higher than budget as a result of higher than expected hotel revenues (over ~$160K), In-Flight Meal concessions (over ~$140K), timing of ORANG drainage fees (over ~$130K), Air Trans Center revenues (over ~$100K), and unbudgeted North Cargo revenues (over ~$90K). AIRLINE (ACC) AND PORT COST CENTERS (PCC) Personnel Services are under budget by ~$600K (~$400K ACC, ~$200K PCC) due to police, maintenance, and administrative vacancies. Materials and Services are under budget by ~$2.1M (~$1.3M ACC, ~$800K PCC). Accounts impacting both ACC and PCC have variances related to the timing of environmental expenses (under ~$400K), travel and management expenses (under ~$350K), outside services (under ~$285K), consulting expenses (under ~$250K), custodial services (under ~$175K), interdepartmental transfers (under ~$175K), and insurance (under ~$140K). ACC also received terminal concessionaire marketing reimbursement credits of ~$75K. GENERAL AVIATION Revenues are over budget by ~$80K, primarily due to higher than expected rental car revenues (over ~$30K), landing revenues at HIO (over ~$25K), and fuel flowage fees (over ~$20K). Expenses are over budget by ~$10K, primarily due to higher utility (over ~$40K), environmental (over ~$20K), and overtime (over ~$20K) expenses. This is offset by the timing of consulting services (under ~$70K).

15 MARINE Adopted Budget Actual Amounts Variance Annual Adopted Budget Current Year Prior Year Variance VOLUMES Autos (Units) 83, , % 267, ,714 83, % Breakbulk (Short Tons) 46,186 51, % 110,232 51, ,034 (52.2%) Containers (TEUs) 34,968 1,169 (96.7%) 94,000 1,169 57,208 (98.0%) Grain Bulk (Short Tons) 1,494, ,623 (41.2%) 4,409, ,623 1,442,490 (39.0%) Mineral Bulk (Short Tons) 1,709,697 1,219,541 (28.7%) 5,389,200 1,219,541 1,629,118 (25.1%) All dollars in millions; OIBD = Operating Income Before Depreciation TOTAL MARINE Operating Revenues $10.1 $9.0 ($1.1) $32.6 $9.0 $11.4 ($2.4) Operating Expenses (2.8) (1.9) OIBD ($0.1) $1.6 $1.7 $3.5 $1.6 $2.1 ($0.5) Depreciation (0.1) (0.3) OPERATING INCOME/(LOSS) ($3.5) ($1.7) $1.8 ($6.7) ($1.7) ($1.5) ($0.2) AUTOS Operating Revenues $2.7 $2.8 $0.1 $8.1 $2.8 $2.5 $0.3 Operating Expenses OIBD $2.2 $2.3 $0.1 $6.9 $2.3 $2.0 $0.3 BREAKBULK Operating Revenues $0.6 $0.7 $0.1 $1.6 $0.7 $0.9 ($0.2) Operating Expenses OIBD $0.0 ($0.1) ($0.1) $0.1 ($0.1) $0.4 ($0.5) CONTAINERS Operating Revenues $2.9 $2.2 ($0.7) $10.3 $2.2 $3.9 ($1.7) Operating Expenses (2.0) (2.5) OIBD ($0.5) $0.8 $1.3 $0.9 $0.8 $0.0 $0.8 GRAIN BULK Operating Revenues $0.9 $0.7 ($0.2) $2.9 $0.7 $1.0 ($0.3) Operating Expenses (0.1) OIBD $0.8 $0.7 ($0.1) $2.8 $0.7 $1.0 ($0.3) MINERAL BULK Operating Revenues $2.0 $1.6 ($0.4) $6.5 $1.6 $1.9 ($0.3) Operating Expenses (0.2) (0.2) OIBD $1.5 $1.3 ($0.2) $4.9 $1.3 $1.4 ($0.1) MARINE SUPPORT Operating Revenues $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Operating Expenses (0.3) OIBD ($3.8) ($3.5) $0.3 ($11.2) ($3.5) ($3.2) ($0.3) MARINE PROPERTY MGMT Operating Revenues $1.0 $1.0 $0.0 $3.1 $1.0 $1.1 ($0.1) Operating Expenses (0.4) OIBD ($0.3) $0.1 $0.4 $0.2 $0.1 $0.3 ($0.2) MARINE ENVIRONMENTAL (T4) Operating Revenues $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Operating Expenses OIBD $0.0 $0.0 $0.0 ($1.2) $0.0 $0.0 $0.0 Note: Totals may not add due to rounding GENERAL FUND FINANCIAL REPORT October 2015 Current Year-to-Date Year-to-Date Actual Amounts

16 COMMENTS Operating revenues are $1.1M less than the Adopted Budget due to lower ICTSI maintenance services reimbursement revenues, no potash activity at T-5 during the installation of Portland Bulk's new ship loader, and lower than anticipated grain volumes. Operating expenses are $2.8M under budget, with the largest variances listed below. Other expenses are $1.0M under budget due to only $24K in actuals for the T-6 carrier incentive program (budgeted at $1M). Contracts, Professional & Consulting Services are $721K under budget due to Berth 501 & 503 grading projects not moving forward this year based on hydrographic survey results ($200K), T-2 and Berth 401 dredging project savings as a result of in-water disposal and lower than anticipated material (~$128K), and timing of master plan and environmental expenses ($264K). Longshore labor expenses are $410K under budget due to lower than anticipated mechanical maintenance activity at T-6. Personnel services are $399K under budget primarily due to lower than budgeted maintenance overtime and vacant positions as a result of lower than anticipated T6 maintenance services. Materials & supplies expenses are $277K under budget primarily due to lower than anticipated materials for T-6 cranes. Travel and management expenses are $104K under budget. Business Line Summaries Autos YTD auto volumes are 21% higher than forecasted and last year due to Toyota and Ford export volumes. Breakbulk YTD tonnage is 11% better than forecasted due to steel rail continuing to move through T-2. However, volumes are down 52% from last year due to the drop in fuel prices, which has decreased demand for barite ore (used in drilling oil wells). Containers TEUs are down almost 100% from the forecast and last year now that Westwood is the only carrier still calling Portland amid the labor issues at T-6. Grain Bulk YTD grain volumes are 41% less than forecasted and 39% lower than last year. Demand is currently very low. In addition, a very strong dollar means buyers can purchase grain elsewhere at a lower relative price. Mineral Bulk Overall, volumes are down 29% from the forecast and 25% from last year due to no potash vessel calls during the first two months of the fiscal year while Portland Bulk's new ship loader was being installed. Activity resumed in September.

17 GENERAL FUND FINANCIAL REPORT October 2015 INDUSTRIAL DEVELOPMENT Current Year-to-Date (Includes Land Use Planning) Adopted Actual Variance Budget Amounts Annual Adopted Budget Year-to-Date Actual Amounts Current Year Prior Year Variance Operating Revenues $1.6 $1.1 ($0.5) $3.5 $1.1 $1.6 ($0.5) Land Sales (15.1) Operating Expenses (0.5) Cost of Property Sold (13.7) OIBD (Op Income Before Depreciation) $2.3 $0.9 ($1.4) ($1.5) $0.9 ($0.6) $1.5 Depreciation OPERATING INCOME/(LOSS) $2.0 $0.6 ($1.4) ($2.3) $0.6 ($0.9) $1.5 NAVIGATION Adopted Budget Current Year-to-Date Actual Amounts Variance Annual Adopted Budget Year-to-Date Actual Amounts Current Year Prior Year Variance VOLUMES Dredging Days (12.3%) (9.5%) Cubic Yards Dredged 1,333,897 1,333, , % Operating Revenues $5.9 $6.0 $0.1 $13.6 $6.0 $6.9 ($0.9) Operating Expenses (0.2) (0.9) OIBD (Op Income Before Depreciation) $0.6 $0.9 $0.3 $1.8 $0.9 $0.9 $0.0 Depreciation OPERATING INCOME/(LOSS) ($0.1) $0.1 $0.2 ($0.4) $0.1 $0.3 ($0.2) Note: Totals may not add due to rounding. COMMENTS Industrial Development Operating revenues are $495K less than the Adopted Budget due to the timing of Rivergate and Swan Island common area maintenance fees. Including land sales, revenues are $15.6M under budget due to the timing of the TRIP Lots 1, 11 and 12, which were all expected to close before November. These sales are expected to occur in the second half of the fiscal year. Operating expenses are almost $500K under budget, with the largest variances listed below. Personnel services are $160K under budget due to position vacancies. Interdepartmental charges are $216K under budget due to lower than anticipated services received from Marine. Navigation Operating revenues are almost $100K higher than budgeted due to repower loan reimbursements from the Corps of Engineers that were not assumed in the budget. Operating expenses before depreciation are only $192K under budget. There have been some significant materials and supplies purchases in the first quarter ($456K over budget YTD), but the timing of various outside services expenses and lower fuel prices ($680K under budget YTD) help offset these higher expenses.

18 Contracts Over $50,000 Pursuant to Delegated Authority APPROVAL LIMITS (Administrative Policy 7.2.3) All expenditures require management approval: BUDGET Approval by managers in an amount delegated by Directors $ 0 - $ 25,000 APPROVAL Approval by Directors $ 25,001 - $250,000 Approval by Executive Director $ 250,001 + Contracting authority is limited to the following: CONTRACTING Directors Up to $ 10,000 APPROVAL Buyers Up to $ 50,000 Manager of Contracts & Procurement Up to $ 250,000* Executive Director Up to $ 500,000 *And any amount approved by Commission Monthly Report for November 2015 (October Activity) New Purchases Title Requestor Department Vendor Name P.O. Amount Obtain Internet services for PDX Wi- Information Fi and corporate use. Technology CenturyLink $62,088 Obtain event management services for the 2016 PDX Runway Run. Corporate Marketing & Media Relations Better Series LLC $65,000 Purchase granular deicing chemicals on a backup basis. PDX Maintenance Nachurs Alpine Solutions, Corp. $80,000 Purchase audio/visual equipment for Port HQ Conference Rooms - Phase 2. Administrative Services CompView, Inc. $96,491 Dredge Tender Ivanoff Hull and Propulsion System Modifications. Engineering Project Development Independent Marine Propeller Shop, Inc. $108,100 Obtain interior plant maintenance services. PDX Maintenance Foliage Service By Concepts In Green $116,000

19 Purchase pavement deicing chemicals. PDX Maintenance Cryotech Deicing Technology $407,000 Change Orders and Amendments to Project-Specific Contracts Contracts in this category are initially awarded with a specific work scope and an identified not-to-exceed project total. Title Requestor Department Vendor Name Original Amount Previous Changes to Contract Current Change to Contract New Contract Total Amendment No. 2 to obtain membership in the Corporate Executive Board for an additional year. Financial Services Administration Corporate Executive Board Company $55,675 $57,800 $29,925 $143,400 Change order No. 15 to obtain additional Construction Manager General Contractor Services for the Replace Access Control System Project. Engineering Project Development Hoffman Construction Company of Oregon $1,993,816 $40,252,960 $73,911 $42,320,687 Administrative item to fund parking, valet and shuttle bus services for an additional year. Airport Operations SP Plus Corporation $7,262,489 $6,872,635 $759,700 $14,894,824 Amendment No. 1 to obtain additional energy efficiency upgrades at Marine Terminal 2. Engineering Design Services Johnson Controls, Inc. $204,305 $2,221,890 $2,426,195 New Task Orders and Changes to Task Orders Against Non-Project Specific Contracts Items in this category are issued against contracts that were initially awarded with no specific work scope or product quantity identified (e.g., "requirements" or "on-call" contracts). These contracts establish pricing or rates for products or work that may be needed over a stated term. Estimated quantities may be identified, but no guarantee of actual contract compensation or work is made. Contract durations may be short-term or for multiple years with optional renewal/extension terms. Title Requestor Department Vendor Name Original Task Order Amount Previous Changes to Task Order Current Change to Task Order New Task Order Total Total Contract Activity - All Task Orders Amendment No. 3 to task order against contract #804 to purchase additional chemicals for the deicing treatment facility. PDX Maintenance CCI - Cherokee Chemical Co., Inc. $51,920 $55,000 $60,000 $166,920 $166,920 Task order against contract No. 820 to obtain process improvement consulting services. Risk Management Conversant Solutions LLC $65,000 $65,000 $581,719

20 Task order against contract No. 660 to purchase low-sulfur diesel fuel for the Dredge Oregon. Navigation Rainier Petroleum Corporation $92,153 $92,153 $5,526,562 Amendment No. 10 to task order against contract No. 300 for janitorial services for PDX concession areas. Airport Properties Portland Habilitation Center, Inc. $524,218 $4,062,547 $109,000 $4,695,765 $6,335,325 Task order against contract No. 660 to purchase low-sulfur diesel fuel for the Dredge Oregon. Navigation Rainier Petroleum Corporation $112,166 $112,166 $5,526,562 Task order against contract No. 742 to obtain inspection services. Engineering Project Development Hatch Mott Macdonald Holdings, Inc. $152,330 $152,330 $2,083,503 Task order against contract No. 742 to obtain inspection services. Engineering Project Development Hatch Mott Macdonald Holdings, Inc. $178,464 $178,464 $2,083,503