Port of Richmond. DRAFT FY Budget

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Mission: The is responsible for developing, marketing, leasing, operating, and maintaining all City-owned marine terminals to obtain the maximum financial benefit to the City. The Port Department performs its function through two divisions: Administration and Operations. Port revenue is generated through the application of the Port Tariff and property lease agreements, which is used to fund operations, maintenance, capital improvements, and debt service. Key Objectives for Strategic Goals: 1. Maintain and enhance the physical environment Set and maintain reserve fund to implement Port capital improvements. Improve city-owned port facilities and gateways to the Port. Promote environmental leadership among Port stakeholders. 2. Promote a safe and secure community Maximize opportunity for obtaining federal and state funds to improve security of the Richmond Harbor. Comply with federal and state Homeland Security regulations. 3. Promote economic vitality Maximize Port finance through effective business development. Create jobs from Port business activities. 4. Promote sustainable communities Reduce the Port s impact on the local and global environment. 5. Promote effective government Collaborate with other City departments, port organizations, and regulatory agencies to streamline the Port s development process. DRAFT FY-10 W-1

Administration Division Goal To provide central services that maximize the Port's operational accuracy and efficiency. To maximize the Port s effectiveness through sound and proactive financial management. To generate business opportunities that maximizes the Port s revenue, profitability, and the Port s contribution to the City of Richmond s overall economic development. Description The Division ensures the Port s compliance with all applicable laws and regulations, provides a single point of contact for customer and community relations, negotiates and maintains leases and other business agreements, monitors trends and customer needs, ensures that long-range plans are executed so that Port operations are appropriately tailored to meet current and future trends and collaborates with other agencies and City departments to maximize community initiatives that involve the Port. The Division maintains a balanced budget, manages the Port s financial and administrative internal control processes, manages account receivables/ payables, prepares and analyzes financial reports, and oversees effective cash flow management. The Division continuously explores opportunities for future business development, through networking in Port Industry, attending conferences, and comarketing with current tenants and terminal operators. -10 Supporting Actions 3.28.a Increase overall Port revenue by 30% annually. 3.28.b Execute, monitor and maintain Port leases and other business agreements to ensure contract compliance and ensure that the Port maintains agreements that are fully advantageous to both customers and the Richmond community. 3.28.c Establish and maintain good customer relations including administration of an annual customer survey to quickly identify and correct deficiencies that interfere with full customer usage and/or the Port s operational goals. 3.28.d Maintain a proactive and innovative marketing program that uses both passive informational materials (e.g., a comprehensive website and marketing materials), as well as proactive approach that interfaces with industry related activities. 3.28.e Review monthly P & L with Port management. 3.28.f Attend Port Industry conferences and meetings. 3.28.g Prepare the Port s annual budget per budget procedures, prepare, analyze, monitor monthly financial reports, and process account receivables (A/R) and account payables (A/P) in a timely manner. DRAFT FY-10 W-2

Success Indicators Administration Division Mid-Year Actual Year End Projection Output Goal 2010 Proposed 3.28.a Revenue generated $5.6 M $2.74 M $5.4 M $7.02 3.28.e Generate and review monthly P&L with Port management 12 6 12 12 3.28.f # of Port Industry conferences and meetings attended 4 2 6 4 3.28.d # of website and marketing materials maintained and updated 2 1 2 2 3.28.c # of annual customer satisfaction surveys completed Effectiveness 1 0 1 1 % increase in revenue 10% 16% 16% 30% 3.28.a Revenue generated per acre/per year $40,000 $19,847 $40,000 $59,573 3.28.c Level of customer satisfaction 100% 100% 100% 100% 3.28.g Timely processing of A/R and A/P (monthly) N/A N/A N/A 100% Efficiency 3.28.c Total cost per acre $24,747 $9,138 $24,747 $25,703 3.28.c # of customer service improvements implemented 3 0 1 3 DRAFT FY-10 W-3

Operations Division Goal To maintain and continually improve the Port s facilities in order to maximize existing tenant/ customer usage and retention and to attract new tenants that operate their businesses effectively and efficiently. Description The Operations Division develops, operates and maintains the port facilities owned by the City of Richmond (five terminals and approximately 200 acres). -10 Supporting Actions 3.28.a Develop and maintain a maintenance improvement plan in compliance with City requirements that includes an inspection and maintenance schedule. 3.28.b Develop, implement and maintain a Port security plan that meets or exceeds state and federal standards. 3.28.c Implement and maintain a program that reduces the Port s environmental impact wherever possible. 3.28.d Manage all existing short and long-term leases, focusing on renegotiation to increase revenue and standardization. 3.28.e Adhere with industry safety standards (U.S. Coast Guard, OSHA and Cal-OSHA). Success Indicators Mid-Year Actual Year End Projection Output Goal 2010 Proposed 3.28.a # of scheduled maintenance projects & CIP projects 5 2 5 5 3.28.b % of state/fed security agency oversight compliance 100% 100% 100% 100% 3.28.c % of state/fed environmental agency oversight compliance 100% 100% 100% 100% 3.28.d # of existing leases (both short and long-term) 16 8 16 14 3.28.e % of facilities inspected monthly N/A N/A N/A 100% Effectiveness % of scheduled maintenance 100% 100% 100% 100% projects performed on time 3.28.a # of unscheduled maintenance 1 1 1 1 projects 3.28.b # of security violations 0 1 1 0 3.28.d # of leases renewed 4 1 4 4 3.28.e % of environmental standard compliance 100% 100% 100% 100% Efficiency 3.28.a Maintenance cost per facility $8,400 $2,850 $8,400 $9,500 3.28.b Cost of security related fine N/A N/A N/A N/A 3.28.c Cost of implementing environmental standards N/A N/A N/A N/A DRAFT FY-10 W-4

W-5

FY-10 Organizational Chart Jim Matzorkis Port Director Office Management Existing FTE = 7 Existing Pos. Legend: Main Program Proposed Pos. Sub-Program Administration Business Development / Operations Business Finance Operations Development Operations Administrator Senior Accountant Port Administrator Port Maintenance Manager Project Coordinator Maintenance Lead Worker W-6

City of Richmond Multi-Year Comparative Position Listing Department Adopted 2006-2007 Adopted 2007-2008 Adjusted 2008- Proposed -2010 Position Request or Reclassification PORT Executive Secretary 1.0 Harbor Engineer 1.0 Operations Administrator 1.0 1.0 1.0 Maintenance Lead Worker 1.0 1.0 1.0 Maintenance Worker II 1.0 Port Director 1.0 1.0 1.0 1.0 Port Administrator 1.0 1.0 1.0 Port Maintenance Manager 1.0 1.0 1.0 1.0 Project Coordinator 1.0 1.0 Senior Accountant 1.0 1.0 1.0 1.0 Total Full-Time Equivalents (FTEs) 6.0 6.0 7.0 7.0 W-7

Fund 4001 - PORT CITY OF RICHMOND Fund 4001 - Port FY 07/08 Actual FY 08/09 Adjusted [including mid-year] FY 09/10 Proposed $ Change from FY 08/09 % Change from FY 08/09 Working Capital, Beginning Balance (5,054,613) (478,308) (112,140) 366,168 77% Revenues Service Charges and Fees 10 - - - Interest and Investment 488,105 10,000 50,000 40,000 400% Rental and Other Income 5,935,504 5,490,167 7,303,411 1,813,244 33% Reimbursements (35,388) - - - Transfers In 1,863,749 1,095,000 - (1,095,000) -100% Total Revenues 8,251,981 6,595,167 7,353,411 758,244 11% Expenditures Salaries and Wages 542,871 702,904 731,020 28,116 4% Benefits 294,572 369,722 386,687 16,965 5% Total Salaries & Benefits 837,442 1,072,626 1,117,707 45,081 4% Operating Expenditures Professional Services 1,223,086 876,500 459,000 (417,500) -48% Supplies (10,501) 44,100 44,100-0% Utilities 144,324 210,500 230,700 20,200 10% Direct Costs 50,636 139,500 128,500 (11,000) -8% Provision for Insurance Losses - 100,000 78,000 (22,000) -22% Internal Service Fund Charges 550,612 558,908 983,321 424,413 76% Capital Lease Payments 56,025 109,710 306,597 196,887 179% Debt Service 585,460 - - - Other Operating Expenditures 77,180 677,154 105,050 (572,104) -84% Depreciation 4,578 5,000 5,000-0% Transfers Out 156,834 50,000 50,000-0% Total Operating Expenditures 2,838,234 2,771,372 2,390,268 (381,104) -14% Total Expenditures 3,675,676 3,843,999 3,507,975 (336,023) -9% Working Capital, Ending Balance (478,308) (112,140) 3,373,296 3,485,436 3108% Change in Working Capital 4,576,305 366,168 3,485,436 Footnotes: Footnote: Cash required to repay principal (not considered an "operating expense"). - 2,385,000 360,000 FY /10 W-8