Are in the same business, and its if you really think about it, portland took 60, 70 of our work. So what did we do and i dont believe in living in the past. I believe sometime you cut your losses, you look to the future, and we find out what may have to go there. It may be ship repair, it may be something else, but i think we can get some revenue. I think this is a good plan, laying it out there. I think we got some work to do, but i truly believe that a port runs so different than a corporation, and as i say, the shareholders of the port is the public, and none of these commissioners up here, we dont get shares like a corporation do, so its totally run totally different, and this is what i do every day, dealing with all the west coast ports for the last 40 years of my life, so i clearly understand how that runs, but i do understand commissioner woo hos concern. I think well continue talking about maritime, i think well keep going at it, but also, i think theres a lot of facets to this. I think this is a good report. I think as we move along on it, and we make some adjustments, i think one of the hardest things that i see is seem to be getting staff hired. Bureaucracy is tough. I mean, i cant even imagine that, and the commissioners, we come to a Commission Meeting maybe twice a month, but were not down in the trenches every day like the port staff and the executive director, so i think theres some great work. Im speaking just how i see it, and keep on doing what youre doing and take all the commissioners feedback, what they think, and keep moving forward, but i appreciate the report. Thank you. Yeah, i have to Say Something in response. Okay. Thats fine, but commissioner katz has to speak first. Commissioner katz i forgot one issue. You sort of touched on it with commissioner woo hos questions, but id just like to ask executive director forbes to put something on our future calendar to further address whats happening with some of the dip in revenue from the cruise ships, and if we could take a look at how we might increase that revenue. Im not sure if its necessarinecessary tied to Economic Issues or we can subsequently increase more calls to the port but i think we need to definitely take a look at it. Commissioner woo ho i think commissioner adams took my remarks in the wrong context. I have no problems with this budget, and i think you should be submitting this with a lot of quality work. I think from my perspective as a commissioner, i do take, and i do understand our shareholders is the public, and our job as a commissioner is to obviously do the best job for the shareholder and the city, so the things that i say are not meant to be critical of the port staff or the port. Theyre meant to be constructive, to say here are some things we should be looking at, and i think sometimes we are not mired in the daytoday. We helicopter in twice a month, which has its advantages and disadvantages. My comments are not to put you on the defense at all. If anything, its to make the port go on the offense, on the opportunities. I want i think elaine understanding that, but i have to go on the record and say thats how my comments i feel very strongly about my responsibility to the public, and i am not looking through the typical shareholder response. Thats one of the things ive learned as being a commissioner on a Public Service board is how you do have to take your community and your constituents which are so diverse and different into consideration, and all the things we do for the community which is very different in a corporate environment, so i appreciate that, and ive learned a lot about it over time. So i want to say that just for the record, because it was not criticism. I do think your budget is fine, but i do think theres opportunities to look at it, and i think we would be remiss not to take a look at those opportunities and to figure out what we could be doing Going Forward and to understand them better. Commissioner woo ho, i didnt take it in that tone. What i was saying was understanding the port you use the word corporation sometimes, and what i was just saying is a port runs so different than a corporation, and i understand your expertise in that, and i dont come from the corporate world, so i was just making a reference that the public is our shareholders and our community, and the commission here, were shareholders. We dont get paid, and we have a responsibility to make sure all this is upheld, so i appreciate your comments. Were aligned, so its okay. Yea. President Boston Marathon don was happy. Democracy in action. Megan, thank you so much for this report. I think its phenomenal that we have a record with a budget of 192,000. I think all of us should be extremely happy of this accomplishment. I do have to say that the way its presented, and i think that in the past, ive always beencau been accustomed to seeing a details report. Hopefully we can get that prior to the next time you bring the budget to us. But the way its laid out, it does look like we have issues with maritime, and that, you know, across the board, were losing money. And it is should be a point of consideration, and i do think that we do need to come even though i know all the work thats being put into it, and whats being done, and i know we cant we dont know know in advance what our port calls are going to be, but still, we need a strategy. We need a maritime strategy, and we have to look at all those revenues and at all our departments to see which ones were subsidizing and where we need to focus our efforts. Also, it was hard to understand 67 position changes without the details, so im really looking what each of the positions are. You know what the salaries are. We have a new what do you call it . Real Estate Development and planning and environment division. To understand how it all works together. We will work on what documents to prepare for next time. The city shifted to a new financial system. It is harder than in prior years to produce this detail. We will look at what we produced in last year and get more detail. I will say the position changes are all taking that Operations Division that executive director moyer created before she left and i chose not to execute. Creating the chief operating position merging planning with the environment and you will see how that looks and we can produce an Organization Chart as well to explain. Many of these changes have been in place since you appointed me executive director, but the budget is catching up to what i implemented some time ago. The changes within every division . There are cleanup changes within every division. We will show you what those are. Some of them are clarifications of positions individuals have sat on for some time based on the hr recommended classification and more technical matters. We will get the details. Any other question on the budget . Thank you, megan. Thank you so much. 11b. Informational presentation on the fiscal year 20182019 and 2019 through 2020 Capital Budget. Good afternoon, commissioners, director for bees. I apon another i am on the finance and administration team. I am here to lay out where we are and what is achievable in coming years in regards to maintaining and enhancing port property. The two year budget represents what we are able to fund in the immediate timeframe from that larger 10 year need. This year to facilitate strategic analysis and bridge the gap between the broader 10 year time other ey horizon. It is the First CapitalImprovement Program to allow a five year look at the project for going to deliver and think about them on a timeframe it can take to conceive of time, design and deliver a Capital Project. We will bring you the full five years in april. The Capital Budget now represents the first two years of that program of projects. As you are well aware it add vances many Strategic Plan goals, most notably strategic to increase revenue. In that 10 year plan we identified a 1. 5 billion need for investment in state of good repair to port. That includes both 1 billion backlog as well as the need to invest 54 million a year annually in renews if they were on the optimal cycle. We identify funding to cover 40 of the state of good repair need. If you look at the table on the right, it shows how we are doing relative to the annual renewal need in the budget with the existing resources. True to the plan, there is a shortfall which drives us to be as strategic as we can to make sure we achieve as much as possible with resources for the port. Our capital policy is a big piece of that. That encourages us to keep investing in capital as much as we can without jeopardizing the operating budget. This five year cip helps ottawa Capital Improvement program. It gives us the look to help us think about what the program of projects looks like, and we continue to us use the approacho priorities ties the project this is the proposal. This year as we have since 2010, we convened an inter Divisional Group the technical review committee. They reviewed more than 60 proposals and scored them to evaluate for possible earn conclusion in inclusion in the budget. In addition to those we overlaid several funding principals in finalizing the recommendation. First was to honor prior commitments. There were requests for funds for existing projects because of the bid environment and current costs additional dollars were needed to complete projects committed to. We wanted to make sure we got to those. Addressing health and safety a priority as well as completing Capital Improvements where necessary to get into an implement lease where a lease is pending. I will talk more about improving project delivery when i get to the slide on the proposed project Management Office. This means projects for outside funding for the work as well as looking at Strategic Investments for returns in capital. To the budget itself, this two year budget is 13 over the previous biannual budget. That is possible really because of the port capital policy both investing meeting the target of 25 as operating revenue invested in capital and putting onetime sources to capital and including a general fund request for two projectses which i will highlight at the end of my presentation. On the sources side as you will note most of the sources are internal port sources with internal fund balances. On the use side 5 of the over 55 is toward good repair. We emphasize the desire to make sure the internal port sources are dedicated to state of good repair. If we look at that chart and focus solely on the internal sources, we would see 70 of the port revenue is dedicated toward state of good repair in this budget. I wanted to note on the sources side in the port fund balance that including several reappropriations of funds. In the left hand column this is cleanup. Closed projects we are sweeping unused fulleds out to use for other projects. On the right side these are where staff has reconsidered how the work might be delivered and current priorities and identified some places where the funds are no longer needs as they were originally budgeted. Mosquitobly is the Ferry Building improvements where staff identified we dont need the full amount programmed to get that project ready and keyed up for possible inclusion in a later general Obligation Bond for parks and open space. I will not step you through every funded project. I am going through a highlight or two on each of the slides. In the state of good repair side, the leading investment here advancing the maritime objectives is dredging 14 of the overall Capital Budget, that maintenance is essential for continued use of the ports deep water birds. Further down the list of state of good repair investments, here we see routine maintenance such as dry docking of the fluteses to improve floats to improve the assets. On enhancement the first two projects listed are projects which we are requested general fund dollars. One highlight is the peer 90 project for planning and design. We will see construction when we come back with a full five year Capital Improvement program for safety as well as for making more real estate saint for achieving the vision of the 8096 industrial strategy. Further on the enhancements and safety we see fire investments including continuing funding of the Fire Protection engineer at the port as well as one of the projects identified through the work of Fire Protection engineer pier 31 new fire system. Most of the project thing on the project delivery i will touch on in highlights. I want to note on this slide the Contingency Fund to set aside dollars to cover unforeseen site investment. That is for projects over budget more often than we like. Highlights of investments. As we heard about from maygan we have had years of sustain revenues and investment in capital. That made staff want to step back and take a moment to think how we might seek efficiencies and improve delivery. We reached out to parsons who helped our city departments. Out of their review and recommendations we are putting forward a proposal for a new project Management Office with five staff to comment the skill sets of existing staff to increase capacity, speed project delivery and enhance ability to gather and use data to improve our performance. Finally, getting to the general fund requests. We asked 11 million for Mission BasedFerry Landing. That represents the amount required in a match for a pending grant request the port submitted in january to the state for the project. On the sea wall side we requested 6. 5 million that is the funding needed to keep that project going through a potential bond sale which we hope to bring to voters in november of 2018. If that bond passed the money from the general funned worry imbursed by bond reimbursed by bond proceeds. You will hear later this month. Final highlight you will hear about later today shortly. That would be this month. You will hear more about the pier 70 today. Right now is the opportunity for the port to consider an upfront Capital Investment in forest city to earn a return as part of that development project. This would put forward and considered by the review committee and scored highly. Finance recommends 6. 5 million investment. That is 1. 2 million in the new budget and existing project balances to bring in 5. 7 million discounted to present value net return over 10 years to the port. We recognize a larger contribution would generate greater revenue for the port. This level of investment balanced against or our removal and safety needs. Doing more would force us to for go time sinc sensitive investmes propose with the rest of the Capital Budget. Meghan has gone through the budget. We are bringing this to the Capital Planning commi committen february 26th before we come back to you for final approval. They will review and hole fully give hundre hopefully give ul approval. I am happy to answer questions. Any Public Comments on the Capital Budget. No Public Comment. Commissioner woo ho. Thank you for giving us what your presentation will be on the budget this year. We hear the 1. 5 billion every year. What i didnt see this year is some of the things we did eliminate last year and how much we were able to find new financing or in some of the larger projects that got absorbed. Since we are going through with mission rock and the four rest city pro forest city project which is mentioned. I understand the movement. It is 1. 5 million or in that neighborhood. We have changes going on but it is always. I think this would have helped us as well when we were looking at the operating budget to give context what we are doing every other year. One year is our planning year where we do the five year financial forecast and capital plan where you really see the ins and out and how big the total need is. The next year is budget only. This year you are dealing with budget only. You are asking context questions a five year financial forecast would answer or capital plan would answer. This year is the year for budget only. Next year is plan only development of the five year financial forecast and the 10 year budget. We wont be able to answer that question. We are going to calder financial updates relative to opportunities and challenges to continue to have strategic opportunities off planning cycle. I think we should be able to see what has been completed, what is partially funds, what remains, and what to put on for the next two years. That would be helpful. I understand. From my standpoint, i am not in a position to say this project over that project. You guys know what you are doing. From that standpoint this is fine because i am not going to add any value in terms of you know, you described the process of the questions asked, how you decide which ones come in. I am fine with that. We are here to look at the bigger picture, how is this pipeline moving over time . Iit is a big challenge. Then the sea wall and other issues to address as well. From our level we are worried about the bigger picture. We cant help on is this project better than that project . You know what is more important and what is priority. I appreciate you balanced out the investment in forest city. This is as much as we could afford. We couldnt ignore the other issues in that regard. That would be my comment. I think you have a good process how you have selected what you need in the budget process. We are looking at the bigger picture. Commissioner katz. It is a very cogent presentation. I appreciate that. I am not sure where to address this question, but as we look at the Capital Budgeting process im not sure i would want to add points to the issue. We have projects that there may be othe