finance - meeting agenda minutes/20… · finance packet 10.16.12 page 1. pike place market...
TRANSCRIPT
Finance - Meeting Agenda
Date: Tuesday, October 16th, 2012
Time: 3:00 p.m. – 6:00 p.m.
Location: Elliot Bay Conference Room
Committee Members: Matt Hanna (Chair), Bruce Lorig (Vice-Chair), David Ghoddousi, Gerry
Kumata, Ann Magnano, and Gloria Skouge
3:00pm I. Administrative:
A. Approval of Agenda
B. Approval of September 18th , 2012 Minutes
Chair
3:05pm II. Announcements and/or Community Comments
3:10pm III. Review of the Financial Statements for September 30th 2012
A. PDA Operating Statements
Sabina Proto
3:40pm IV. Checking Account Activity Report Sabina Proto
3:45pm V. Presentations and Discussion Items
A. Budget 2013 Presentation
Leadership Team
& Managers
5:40pm VI. Items for the Consent Agenda Chair
5:45pm VII. Public Comment
5:50pm VIII. Concerns of Committee Members Chair
6:00pm IX. Adjournment Chair
Enclosures: Minutes for September 18th, 2012
Financial Statements for September 2012
Proposed Operating and Capital Projects Budget for 2013
Finance Packet 10.16.12 Page 1
Pike Place Market Preservation and Development Authority (PDA)
FINANCE COMMITTEE
Meeting Minutes
Tuesday September 25th, 2012
4:30 p.m. to 6:00 p.m.
Atrium Conference Room
Committee Members Present: Matt Hanna, Bruce Lorig, Ann Magnano, David Ghoddousi, Gloria
Skouge
Other Council Members Present: Betty Halfon
Staff Present: Ben Franz-Knight, Sabina Proto, Jay Schalow, Erica Bates, Dianna Goodsell
Others Present: Rolf Trautmann,
The meeting was called to order at 4:31 p.m. by Matt Hanna, Chair.
I. Administrative
A. Approval of the Agenda
The agenda was approved by acclamation.
B. Approval of the August 21st, 2012 Minutes
The minutes were approved by acclamation.
C. Announcements and Community Comments
None
II. Review of the Financial Statements for August 2012
A. PDA Operating Statements
Sabina Proto discussed the Balance Sheet and PDA Operating Statement ending for the Month of August.
Under Current Assets there is minimal change on the Unrestricted Cash Balance. She reported the
following: The Designated Cash decreased due to the fund transfers out of the Capital Reserves for the
expenditures related to capital projects. The Current Liabilities increased mainly in the Accounts Payable
category. The Long Term Debt decreased due to the monthly payments on loans, mortgage and bonds. The
Net Operating Capital had increased overall. Current Operating Result increased from the prior month and
the Levy Funds received in total as of today is $ 64.67 million; amount received in 2012 YTD is $6.12
million. Under the Accounts Receivable Activity Report accounts receivable decreased during July, mainly in
the Commercial category.
Sabina Proto reported under the Accounts Receivable Activity Report, the accounts receivable increased in
August mainly in the Commercial category. The Total Revenue for the end of August 2012 was $9,438,456
or over budget by $96.924. The Total Operating Expense was $ 6,765,541 or under budget by $ 340,771.
The Net Result for the end of August was $ 22,672,915 which is $ 437,695 over budget. The Net Result
after Debt Service & Reserves: Annual Budget was $655,616, and the actual YTD amount exceeds the
budget by $437,695.
Finance Packet 10.16.12 Page 2
Finance Committee
2012
Page 2
85 Pike Street, Room 500 Seattle, WA 98101 (206) 682-7453 www.pikeplacemarket.org
Sabina Proto presented the Revenue in the Operating Statement and stated that the Commercial Revenue is
over budget by $ 33,663. She added overall there was good performance of the Percent Rent. She had
noted that however, the Office Rent is under budget because of the unanticipated construction impacts of
the Levy Phase III. She also noted that one of the ATM’s in not operational and that no rent has been
collected for this year. The Residential Revenue variance was positive because of the impact of the budget
revisions implemented in July and considerable decrease on vacancies. The Daystall Revenue had better
sales in the Crafts area resulting in less days needed; under Farmers, there were some predominant farmers
who had left in combination of a late start to the season. To finish, the Surface and Miscellaneous Revenue is
in track and the Garage Revenue is over budget by $ 74,000 which is better than expected.
Sabina Proto lastly reported that the Operating Expenses are on track in some departments and under
budget in others. She reported there have been some staffing vacancies, as well as the timing of invoices was
different from the budget trending. She noted that the Percent Rent spreadsheet presents the performance
of the percent rent, concluding that the Percent Rent is over budget by $59,000. She lasted reported that
the Capital Reserve Status Report represents the amount contributed to the reserve, and the amount spent
year to date out of the capital reserve.
There was a brief discussion that followed.
David Ghoddousi inquired about receiving specific Daystall data from the tenants and staff. David had also
asked about the farmer’s success with the Satellite markets and if all farmers have the opportunity to
participate in the Satellite markets.
Ben Franz-Knight commented on the Daystall Revenue trending, correlating that the decrease in attendance
by vendors amounts to less attendance fees collected by the PDA. He also noted that there are two
separate issues regarding the Daystall merchants and farmers; there would be more in-depth discussion at
the Full Council Retreat.
III. Checking Account Activity Report
The Checking Account Activity Report was distributed to Dianna Goodsell, Administrative Services
Coordinator.
V. Other Reports and Action Items
None
VI. Staff Reports
A. Discussion Regarding Options for the PDA Pension Plan
Rolf Trautmann from TM&A presented the Discussion of Retirement Plan Options for the PDA Pension
Plan. He distributed a copy of the Retirement Plan options, which has been included with these minutes. He
discussed a summary of the current retirement plan program and provided options for the Pike Place
Market in restructuring the Retirement Program. The options for restructuring the current Retirement
Program include: Moving the Profit Sharing Plan to a daily valued plan, making employer matching
contributions to encourage employee deferrals and termination of the Profit Sharing Plan.
There was a discussion that followed.
Gerry Kumata inquired about employee alumni accumulating to the pension plan and the need to plan for
further costs in the future with the accumulations.
Bruce Lorig noted that we should have a quarterly statement for the Retirement Program.
Matt Hanna noted to have Ben Franz-Knight to include estimates in the budget for the total costs for the
Retirement Program options. He also inquired about staff access to their plan in comparison with the DRP
and Profit Sharing Plan.
B. Budgetary Review of Proposed Spending Resolutions
None
Finance Packet 10.16.12 Page 3
Finance Committee
2012
Page 3
85 Pike Street, Room 500 Seattle, WA 98101 (206) 682-7453 www.pikeplacemarket.org
C. Capital Projects Spending Status
Sabina Proto passed out a chart regarding the Capital Projects spending status. Ben reviewed the Capital
Status spending chart and provided an update on where we are with the costs and allocation of the funds.
He noted that we are in the process of prioritizing the capital projects. He also added that there should be a
resolution before the end of the year for the capital projects assessment. A copy of the Capital Projects
Spending Status chart has been included with these minutes.
D. 2013 Budget Process Update
Ben gave a general overview on the approach to the budget this year. He stated that this year’s budget
would be conservative compared with last year’s budget, especially with PC1-North in process. Sabina Proto
informed the committee that the budget process has begun. She reviewed the upcoming budget process
schedule, also noting that next month’s meeting will start at 3:00 pm. She reviewed important budget dates
which as follows:
Tuesday, September 25th PDA Finance Committee Regular Meeting: Budget discussion, goals and
direction with the Finance Committee council members.
Tuesday, October 9th Community Budget Meeting: PDA staff will give an overview of the 2013
programs, discuss the opportunities and challenges that will affect the 2013 budget, and hear the
public’s ideas and comments on Market needs that affect the budget.
Tuesday, October 16th PDA Finance Committee Regular Meeting: Presentation of 2013 Proposed
Final Budget.
Wednesday, November 7th Special Finance Committee Meeting Budget Discussion & Public
Comments: Finance Committee members and staff will discuss recommended changes to the 2013
Budget as presented to the FAM Committee on 10/16/12. The Committee will also hold a public
hearing for tenants and the public to ask questions make comments or offer suggestions on the 2013
Proposed Budget.
Tuesday, November 20th PDA Finance Committee Regular Meeting: Additional public comment and
report on public dialogue feedback; Finance Committee discussion and direction provided to the
PDA staff for recommended changes to the 2013 Proposed Budget. The Finance Committee adopts
the final recommended 2013 Budget and Budget resolutions for consideration by Full Council.
Thursday, November 29th Regular PDA Council Meeting: The full PDA Council reviews the Finance
& Asset Management Committee recommendations and adopts the 2013 Final Budget.
There was a brief discussion that followed.
Gerry Kumata noted that many of the capital investments projects will need to be maintained and hopes to
have these items budgeted; we should be funding a central plan for this category.
Bruce Lorig noted his concerns with the Security department staffing and operations costs. He would still
like to have a consultant brought in to evaluate the current Security program and efficiencies.
Matt Hanna inquired to Ben Franz-Knight about the costs and process for hiring a security consultant. He
added that he is in favor of examining the security operations from an outsider’s perspective; the question is
the costs. He also noted that it would be helpful to know from an experienced professional how the
security department works.
Ben Franz-Knight stated that the questions asked by the committee members were good. He added that the
members should identify ways for all of the departments to be more efficient. He encourages the committee
to challenge all of the departments, not isolating just one.
E. Review of Financial Resources for PC1-North Project
Ben Franz-Knight briefly reviewed the financial resources for the PC1-North Project. He noted that the
Seattle city mayor released the budget in which more money is allocated total, but less allocated for the
year 2013. He stated that the budget will need to be shifted.
VII. Items for the Consent Agenda
Finance Packet 10.16.12 Page 4
Finance Committee
2012
Page 4
85 Pike Street, Room 500 Seattle, WA 98101 (206) 682-7453 www.pikeplacemarket.org
None
VIII. Public Comment
None
IX. Concerns of Committee Members
None
X. Adjournment
The meeting was adjourned at 6:06 p.m. by Matt Hanna
Meeting minutes submitted by:
Dianna Goodsell, Administrative Services Coordinator
Finance Packet 10.16.12 Page 5
Finance Packet 10.16.12 Page 6
Finance Packet 10.16.12 Page 7
Finance Packet 10.16.12 Page 8
Finance Packet 10.16.12 Page 9
Finance Packet 10.16.12 Page 10
Finance Packet 10.16.12 Page 11
Finance Packet 10.16.12 Page 12
Finance Packet 10.16.12 Page 13
Finance Packet 10.16.12 Page 14
Budget Overview
Pike Place Market Preservation and Development Authority
2013
Finance Packet 10.16.12 Page 15
The Pike Place Market Preservation and Development Authority 2013 Operating and
Capital Budgets
The Pike Place Market Preservation and Development Authority (PDA) is a non-profit public
corporation chartered by the City of Seattle in 1973. As a public trustee, the PDA serves as the
manager and steward of the city’s historic Public Market Center. The PDA’s mission and charter
purposes are:
Preserving the traditional character and uses of the Public Market;
Renewing, rehabilitating, preserving, restoring and developing structures and open
spaces in and around the Market Historical District;
Continuing the opportunity for Public Market farmers, merchants, residents, shoppers
and visitors to carry on traditional market activities;
Initiating programs to expand food retailing in the District, especially the sale of local
farm produce;
Providing goods, services and housing to low and moderate income people;
Promoting small-owner operated businesses that have the opportunity to thrive in a
unique community where producers meet and interact with consumers;
Considering the views of the public and the Market community in establishing policies,
programs and budgets to further the preservation objectives of the Market.
Finance Packet 10.16.12 Page 16
2013 Budget Objectives and Highlights
The 2013 Pike Place Market Preservation and Development Authority budget presents a
continued investment in maintaining, managing and supporting the Markets core infrastructure,
mission and programs. In addition to ensuring prudent levels of staffing and resources for basic
services in facilities, security, maintenance and capital programs the 2013 budget also includes
allocations to support the following key goals:
Continue development of concepts for PC1N.
A concentrated investment in Farm and Food programs including staff support for the
Economy Atrium Kitchen and Event Spaces, small farmer recruitment and retention and
facilitation of region wide Food Hub and Food Web efforts.
Restructuring of Daystall, Farm and Busker management efforts to facilitate more
focused efforts in the areas of arts and crafts, food and farm.
Management resources to support quality analysis and research of strategic issues.
Marketing programs designed to support key goals and deepen connections between
Seattle residents and the Market including downtown resident use of the Market as their
daily food and shopping resource.
The national economic landscape is complicated by this year’s Presidential Election and
concerns over the potential inability of congress to take critical action in the early part of 2013.
Setting aside dire forecasts for a “fiscal cliff” should congress be unable to act swiftly and
effectively, general projections show continued slow growth with anticipated gains in
employment and housing. Projections for Washington State and the regional economy are
consistent with national trends with the Seattle area rebounding faster in areas including housing
and, in particular, rental markets.
Throughout 2012 the Pike Place Market demonstrated great resilience; generally performing
better then the broader economy. This can be attributed to several factors. First, the Market is a
well known destination in addition to serving as a beloved local resource for daily produce and
goods. As a destination, the Market is generally perceived as having great value with no cost of
entry beyond parking or public transit fare. Further, the Market serves as a food center including
produce, prepared meals and full service restaurants. Most notably, we saw increases in
mercantile sales in 2012, a strong indication that the economy is moving in a direction that
provides more discretionary spending.
Projected increases in hiring for 2013 are also positive signals for downtown and the Market
with Amazon rapidly expanding in South Lake Union, new institutions of higher learning
establishing campuses and a host of technology firms and corporations strengthening their
footholds in downtown. Gains in tourism, including increases in cruise passenger traffic are also
positive signs. With the increase in employment opportunities, it will also be important for us to
continue to invest in our workforce in the Market to retain and inspire our dedicated and
knowledgeable staff.
We will continue to make prudent investments in annual capital improvements to buildings and
infrastructure in the Market. While a vast majority of these needs have been met through the
Finance Packet 10.16.12 Page 17
levy-funded renovation, thoughtful and consistent annual reinvestment in the Market will ensure
long-term maintenance and preservation. The 2013 budget does reflect anticipated decreases in
expenses in the areas of plumbing and electrical supplies with critical capital project needs
addressed as part of our ongoing preventive maintenance efforts.
Planning for the Market’s future will continue with further development of concepts for PC1N
schematic designs and further analysis of program components, revenue projections and
anticipated long-term operating costs. We will continue to actively monitor the impacts to the
Market as work related to removal of the viaduct continues to move north including traffic
patterns on Western.
The 2013 Budget also reflects a dedicated investment in the Market’s founding mission in food
and farm. The realization of the long held goal of establishing a demonstration kitchen, coupled
with the ability to meet the demand for event space in the Market will allow us to support a
significant community need. This effort dovetails with substantial focus on our Farm Program,
including detailed analysis of the Market’s role in regional Food Huband food equity initiatives,
and support for the growth and success of small farmers and food providers. The Economy
Atrium Kitchen and our Farm Program are distinct disciplines; however, the synergy of these
two efforts will allow the Market to continue to take a leading role in directly connecting
consumers to their food producers and further establish the Market as the center of Seattle’s food
culture.
Finally, the 2013 Budget also provides modest, but critically needed, support for the Social
Service efforts in the Market. Funding is allocated to support a new partnership with AmeriCorps
that will provide three full-time volunteers supporting a broad range of services including the
Food Bank, Senior Center, and food equity and access portions of our Farm Program. A modest
increase has also been included to support continued resident advocacy efforts ensuring that
residents in need are connected with available services. In conclusion, the 2013 Budget reflects a
conservative approach to revenue forecasts while also being realistic given the resilient
performance of the Market. The budget also applies a thoughtful and judicious allocation of
expenses and project priorities that support key goals for 2013.
2013 Budget Summary:
Total Revenue $ 15,179,094
(percentage increase) 6.00%
Total Operating Expenses $11,173,255
(percentage increase) 4.00%
Debt Service $ 1,784,287
Finance Packet 10.16.12 Page 18
Designated Reserves and Pension $ 307,481
Net Surplus $ 1,914,072
The 2013 Budget was developed through a process that started with multiple internal tests
applied to cost centers and revenue projections. This included soliciting estimates from vendors
and service providers, reviewing annualized actuals and prior year performance. Following
rough budget projections, we engaged in a series of internal manager meetings, departmental
discussions and one-on-one analysis with managers and directors to prioritize based on need,
growth potential and opportunities for improvement. We also conduct multiple PDA Finance
Committee meetings and Community Budget Meetings. The proposed budget incorporates the
thoughtful dialogue and recommended changes that were generated during the budget review
process.
REVENUE
Generally, revenue is expected to be $ 804,434 higher in 2013 when compared to the budget
amounts for 2012. This projection is based on year-to-date performance (through October 2012)
and reflects the continued steady performance of the market as a whole. With major renovation
ending, we expect added revenue from spaces that have been held vacant to accommodate
construction impacts.
Commercial tenant revenue represents nearly 60% of our total revenue and is most affected by
economic conditions. The business health of the Market has been remarkably steady despite
larger economic reports and we expect this strength to continue.
Residential revenue is projected to be higher in 2013 compared to 2012. Contract rent payments
for rent subsidies will increase and a significant reduction in vacancy is expected because
renovation is complete and all apartments are available to lease.
Daystall revenues will be slightly higher in 2013 due to the increase of the attendance and daily
rate.
Parking Revenue is expected to increase based on the actual(s) performance during 2012.
Investment income remains nominal. Interest rates are paying next to nothing, thus continue to
reduce our investment income. And, since our funds are considered public funds we have limited
opportunity for investment and the majority of our reserves are invested in the Local
Government Investment Pool.
Finance Packet 10.16.12 Page 19
OPERATING EXPENSES
Expenses are budgeted to be higher in 2013 than in 2012. The total count of FTE (full time
employees) is the same as 2012 with one addition FTE, and we have proposed a wage increase
for all PDA staff non-union and union (union workers have a set increase guaranteed). Utilities
expenses are expected to increase slightly during 2012 due to the rate increases.
We propose a budget with a net surplus before capital spending and maintain an adequate
operating reserve that remains intact.
DEBT SERVICE AND RESERVES
Debt service and reserves are fixed obligations with the exception of the PDA employee pension
contribution. This is a discretionary expenditure subject to the parameters in the pension
document. The contribution proposed in the 2013 budget will be confirmed after the final 2012
operating results are available. A significant debt payment in 2012 is scheduled to retire one of
the Loans related to the NMTC Financing used for the construction of the LaSalle Commercial.
CAPITAL PROJECTS
The PDA capital projects budget represents ongoing capital work outside the major levy-funded
renovation. These projects will be funded from PDA operations and CRRF (Capital Repair and
Replacement Fund). The capital program for 2013 includes necessary repairs and replacements
in our buildings, as well as some large projects like the Livingston Baker Fire and Life-Safety
upgrades, Market-wide signage and restoring the Sanitary Building Exterior.
2013 Budgeted Revenue
The Pike Place Market PDA generates rental revenues from commercial, residential and Daystall
tenants, parking fees from the Public Market Parking Garage and surface lots, and miscellaneous
programs and investment income as outlined below.
COMMERCIAL REVENUE
Commercial revenue consists of base rent, percent rent, Common Area Utility (CAUT) and
Maintenance (COMA) charges, direct utility reimbursements, and other miscellaneous charges.
Base rent consists of rents generated from retail and office leases. The majority of retail and
office tenants are on multi-year leases with annual increases based on the Consumer Price Index
or 3% whichever is higher. Renovation did provide a few changes in the amount and type of
Finance Packet 10.16.12 Page 20
commercial space in the Market and the opportunity to expand for several businesses and a
couple new ones. As the tenants grow into these new spaces the budgeted figure for base rent is
computed on a tenant by tenant basis, by building. A return to a low vacancy rate is assumed as
we complete a year of finding tenants for new spaces opened during renovation.
Retail tenants are assessed common area charges, categorized as common area utilities (CAUT)
and common area maintenance (COMA). These charges will remain at the current combined
assessment of 59% of Base Rent in 2013. The allocated portion of all utilities used in operations
of the commercial spaces is covered by CAUT and direct billings to tenants for utilities used on
their premises. The new digital metering system has greatly improved the accuracy of these
reimbursements. Due to our role as a public place, retail center, and our larger than normal
common areas, the PDA continues to limit the pass-through of COMA expenses to less than
what is allowed by the commercial leases. We will re-evaluate the pass- through charges and
determine if any changes should be made. At this point we can estimate some utility costs of the
new equipment and mechanical systems and have evidence of savings in operating costs.
Overall, we will need additional time to monitor operating costs for net changes, as new public
amenities (restrooms, elevators, improved cooling of common areas) will affect utility
consumptions.
Sales based Percentage rent represents approximately 29% of the total commercial revenue. This
rent component is based on tenant sales and calculated against a monthly base rent payment.
The increase on the percent rent is budgeted to be 3% compared to 2012.
RESIDENTIAL REVENUE
Residential revenue represents market rate and HUD subsidized tenant rents, laundry fees, and
miscellaneous charges. We are proposing an increase of 2 % to 3% for market rate and annual
adjustments of 1% to 1.5% for HUD subsidies under contract. The Section 8 contract for 48 units
of elderly subsidized housing in the Stewart House was renewed for a 20 year contract. HUD
subsidies for 8 units in the Sanitary Market l expired during 2012. Current residents received
vouchers that they can use to continue residency in the building or move elsewhere. Vacant
units will be converted to market rate rents. Increases in residential income for 2013 are
primarily expected due to the completion of renovation, which has kept about 10% of our
housing inventory off-line. During 2013, we will make changes in the structure of budget
reports to more accurately track vacancy loss in residential income, with the goal of maintaining
a 4% vacancy rate. During 2013 we will also make some adjustments in market rate rents to
bring all units closer to a similar standard rate, while remaining at affordable levels for median
income households.
Finance Packet 10.16.12 Page 21
DAYSTALL REVENUE
Daystall revenue represents the collected charges for the crafts and farmer day table rents,
storage and locker unit charges, and permits fees.
A total of 184 Daystalls are rented on a daily basis to a pool of over 200 craftspeople and nearly
100 farmers.
The PDA is proposing a $0.20 rent increase in daily Daystall rents for 2013.
PARKING REVENUE
The Garage and Surface Parking revenue represents all receipts from daily and monthly parking
fees. We attempt to manage our parking volumes and ultimately the revenue by changing
monthly and daily rates seasonally, increasing during busy months and decreasing during the
slower months. In spring of 2010 we implemented the automated parking system, which has
shown positive impact on the garage revenue. The new system requires the customers to pay and
get their ticket validated prior to exiting.
We anticipate that revenue will continue to grow during 2013.
We are participating in a program with the City and State that are part of the Alaskan Way
Viaduct Mitigation Efforts. We are optimistic that continued participation in these programs will
result in increased volumes of short term parkers in the garage, and ultimately the revenue.
MARKET FOUNDATION REVENUE
In 2013, the Market Foundation will contribute $ 20,000 to the PDA to fund Market Fresh
Coupons to support low income families and seniors. Recipients redeem these coupons at farm
tables and highstalls for fresh produce. The PDA reimburses the tenant and/or farmer for
coupons redeemed.
MISCELLANEOUS REVENUE
Miscellaneous revenues are received through security contracts, management fees, investment
earnings, filming contracts, and trademark fees. The majority is interest earnings on PDA
reserves. The interest rates will continue to remain low during the coming year. The interest rate
in 2013 is estimated to average 0.19%. We invest our surplus fund in the Local Government
Investment Pool (LGIP), which has averaged less than 0.18% throughout 2012. Being a
Finance Packet 10.16.12 Page 22
government we are restricted as to our investment options to FDIC insured banks and
government securities.
2013 Budgeted Expenses
The majority of the PDA expense budget is spent on operations or tenant services including;
security, maintenance, facilities, utilities, insurance, and property management services. This
represents approximately 73% of the total budgeted expenses for 2013. Management and
administrative expenses represent 17% and marketing, farm and other programmatic expenses
represent 10% of our total expenses. Departments and 2013 programs are described as follows:
Property Management
COMMERCIAL
The Commercial Property Management Department consists of four full-time employees: two
property managers, a lease administrator and the department manager.
The department acts as the primary liaison to over 200 commercial tenants who occupy
approximately 369,500 square feet of retail space. Responsibilities include new tenant
recruitment and development, lease administration, negotiations of new lease terms and
conditions, lease document and applicable amendments preparation, renegotiation of existing
leases coming to term, and establishment of tenant and customer service standards.
The department also oversees administration of rent increases; enforcement of all lease
provisions, covenants and conditions; and tenant assistance with the application process for the
Market Historical Commission (MHC). Due to the significance of percentage rent to overall
income, the staff will conduct some test audits to confirm correct reporting of retail sales by
tenants.
The commercial property staff is very involved in tenant communication and negotiations
resulting from the renovation, and they are often the tenants’ first contact to report problems.
With the Markets unique tenant base, our hands-on tenant service culture has worked well for us
as property managers. Among initiatives for 2013 will be the start of a phased replacement of
directory signage for businesses and amenities throughout the Historical District.
Finance Packet 10.16.12 Page 23
RESIDENTIAL
The Residential Property Management Department consists of eight full-time employees: the
department manager, a compliance specialist, three building managers and three facilities staff.
The residential staff manages and cares for 333 units of the eight Market buildings that are
market-rate and low-income HUD subsidized housing. Staff additionally ensures that the
buildings stay within HUD compliance rules. The PDA is the contracted manager for the LaSalle
and is reimbursed an allocated portion of the department’s expenses by this entity.
The HUD regulations in the subsidized housing require a very specialized knowledge base,
annual income recertification of each tenant, regular training and regulatory updates. The work
of the residential staff in Market buildings is more than just a building manager.
Our staff is known for excellent service to our low income population. We provide special
attention to the residents, many of which are elderly and fragile, and may need some assistance
with living independently in the community.
DAYSTALL AND FARM
The Daystall and Farm Departments consist of five full-time employees who are responsible for
managing the hundreds of farm and craft tables that are rented daily to permit holders as well as
managing and the farm program activities and events here at Pike Place. In addition they oversee
the permitting of over 400 Buskers and the daily rentals of the Rummage Hall.
Staff is responsible for recruiting new farmers and craft vendors and carrying out inspections to
verify compliance with the rules in craft production and farm. Additionally, they oversee rules
compliance by performers, performer dispute resolution, as well as regulate and modify the
Daystall Rules and Regulations each year.
The Daystall staff is also responsible, in cooperation with the Marketing and Communications
department and the new Community Programs and Events department, with the planning and
execution of special events including the semi-annual Arcade Lights, Flower Festival, weekly
summer Chef Demos, and others as requested.
Assisted by several seasonal interns, this department also leads the implementation of the
programs and events that occur during the summer Farm Season and logistics and set up of the
remote farmers markets. They support Market farmers and promote farm programs such as Farm
Days on Wednesdays, Saturdays and Sundays, administer the WIC/SFMNP/SNAP/Debit
programs, and organize distribution and redemption of Market Fresh Coupons and Pike Place
promotional farm coupons. Farm staff additionally works with area farms, agricultural extension,
Finance Packet 10.16.12 Page 24
and farmers’ market resource organizations to provide opportunities for Market farmers to stay
current on issues in Washington agriculture and to recruit farmers to Pike Place Market.
PARKING
The Parking Department consists of 3 full-time employees and operates for 15 hours per day.
The Parking Department is responsible for operating the 535-stall parking garage. Pricing is
monitored based on surrounding competition, special events, and seasons.
We have estimated increase on the services provided by Facilities, Maintenance, Accounting and
IT departments as they have absorbed new tasks related to the new parking system. We will see
an increase in bank transaction fees as more people will be paying by debit or credit card.
Operations
FACILITIES
The Facilities Department consists of 26 full-time employees in a 24/7 operation.
The Facilities staff provides 24-hour cleaning with environmentally safe products to the inside
and outside spaces of the Pike Place Market. They are responsible for providing a clean and safe
environment for the more than nine million visitors, as well as merchants and residents who live,
shop and do business in the Market each year. Additionally, facilities staff maintains the lighting,
landscaping, garbage and recycling needs of the Market. This includes dumping more than 4
million pounds of garbage down the garbage chute each year, recycling in excess of 1.6 million
pounds of compostable waste, 440,000 pounds of glass, 500,000 pounds of cardboard, 20,000
gallons of cooking oil and 420,000 pounds of mixed paper, cans and plastic. Facilities staff also
recycles all of the expired fluorescent lighting, appliances and electronics generated in the
common and residential areas of the Market.
SECURITY
The Security Department consists of 20 full-time employees, as well as 15 part-time off-duty
Seattle police officers.
The uniformed Security staff officers provide 24-hour security and safety services within the
Market, and interact with and monitor the safety of customers, staff, tenants and residents on a
Finance Packet 10.16.12 Page 25
continuing basis. We generally have 3-5 officers per shift, with the greater numbers on weekend
days. The PDA also employs off-duty Seattle Police Officers and works closely with the Seattle
Fire Department for purposes of emergency preparedness and response.
Security staff are often the first responders in emergency and off- hour situations, both property
and people related. They are the designated contact for all Market calls during non-office hours.
Additionally, security is providing fire watch services to the construction site and new
assignments as needed during the renovation.
MAINTENANCE
The Maintenance Department is budgeting ten full-time employees.
The Maintenance staff maintains and repairs the PDA’s thirteen buildings, with emphasis on
preventative maintenance including fire and life safety, building repairs, and painting.
Additionally, they oversee the elevator maintenance contracts, as well as the HVAC system
(Heating Ventilation and Cooling) and cooler maintenance contracts. The Maintenance
department works closely with the Capital Projects department to coordinate in-house and
contracted maintenance and capital projects.
The Maintenance staff also manages the operation of the new systems installed in the Market
through renovation which have required different skill sets and technical certifications and
licenses, such as boiler and electrician licenses and training in electronic HVAC controls.
CAPITAL PROJECTS
The Capital Projects Department includes two full- time employees and one part time employee
who manage the PDA’s ongoing capital program.
The PDA Capital Projects managers are responsible for managing and overseeing the budgeted
capital projects planned for 2013 that are not included in the levy-funded renovation project.
These projects are listed in the capital section of this budget. These managers are responsible for
the design and bidding process when applicable, the scope, schedule, and budget for each
project, oversee the contractor and maintain the contract process and files in order to maintain
compliance with PDA policies and public works contracting. They work in conjunction with the
maintenance staff to coordinate the timeline and efficiency of both maintenance and capital
projects.
The Capital Projects department will also continue to assist with long-term planning efforts
including PC1N.
Finance Packet 10.16.12 Page 26
UTILITIES
Utility expenses include the costs of electricity, water/sewer, recycling, garbage, and pest control
for the tenants and common areas. A major objective in the Levy renovation was to provide a
central plant and dramatically increase the number and accuracy of metered service to tenant
spaces for water, electricity and cooling. In 2012 we expanded the system of improved utility
billing to the Economy and Soames-Dunn Recovery of utility costs associated with common
areas and public amenities is funded in part from through CAUT charges which are also reflected
in the Commercial Revenue budget.
The new central plant in the garage came on line in the first quarter of 2010. We have seen an
increase in gas and electricity usage to power the new boilers and fluid coolers. The new
electrical and HVAC service and new metering systems provide us with the opportunity to now
closely monitor energy usage patterns throughout the market, down to the hour. This greatly
increases our ability to quickly and accurately pinpoint “weak spots” and to implement
conservation measures.
INSURANCE
Our annual insurance renewal is May 1. The 2013 budget reflects actual rates through April 30
and for the remainder of 2013 we are budgeting insurance costs to be 5% higher than actual rates
for 2012.
Primary coverage is for property damage and liability to protect the Market’s properties in the
event of earthquake, fire, and personal damage lawsuits.
Administration
MANAGEMENT
The Management Department consists of six full-time employees. Department Directors are not
charged to their departments, but to the management department.
The Executive Director, Department Directors, and the Project Manager work with the PDA
Council to develop and implement the strategic goals of the Market. They provide information to
the PDA Council for their work in developing policy and decision - making.
Finance Packet 10.16.12 Page 27
The Management team oversees all departments within the PDA and represents the Market in
various capacities throughout the City and downtown community. They work on all issues within
the various departments and develop department direction and annual work plans.
FINANCE
The Finance Department consists of five full-time employees.
The Finance Department is responsible for the overall accounting, tenant billing, and
disbursements for the PDA’s revenues and operating expenses, as well as for the LaSalle Senior
Housing LLC. They oversee the yearly independent audit, the State audit, the LaSalle Senior
Housing LLC audit, and the audits for QALICB 1 and 2. We have taken the step to engage the
same audit form for all of our audits, other than the State audit, to improve efficiency in the audit
process and to reduce the cost. The Finance Department prepares financial reports for
management, the PDA Council and lenders as well as the annual PDA operating budget.
In addition, the Finance Department oversees compliance with the PDA’s debt requirements, tax
credit financing requirements, and federal and state grant requirements, tax returns and all other
government reporting requirements.
OFFICE ADMINISTRATION and HUMAN RESOURCES
The Office Administration and Human Resources departments consist of five full-time staff.
The Office Administration staff manages the daily office needs, reception, meeting minutes
recording, committee packages preparation and payroll functions. Office Admin answers or
directs all public inquiry received at the main PDA office and provides administrative support to
all other PDA staff.
The Human Resources staff is responsible for planning and overseeing employee hiring and
terminations, employee benefit programs, training and recognition, employee safety programs,
union negotiations, as well as responding to all employee-related issues and concerns.
INFORMATION SYSTEMS
The Information Systems Department consists of two full-time employees who manage the
PDA’s information systems and communications infrastructure, as well as providing technical
support for staff. Staffing levels are the same as in 2012.
Finance Packet 10.16.12 Page 28
Programs
MARKETING AND COMMUNICATIONS
The Marketing and Communications Department consists of three full-time employees and
manages all of Pike Place Market’s advertising, promotion, media relations, and internal and
external communications, as well as a school program which helps educate area students in
grades 2-5 about Pike Place Market, and basic food-education. The Marketing and
Communications Department works closely with the Daystall Department on the development,
marketing and execution of special events and programs.
The Marketing and Communications Department generates revenue through the trademark
licensing program, developing contracts and managing royalty payments, as well as by
coordinating filming and photography requests for commercial use.
In 2013 our focus will be on engaging and energizing Seattle-area residents – especially those
who work or live downtown – to make the Pike Place Market a consistent shopping destination.
In addition, we will help promote the traditional values and unique character of the Market to
those who are less-frequent visitors, or who are experiencing the Market for the first time.
At the center of our 2013 Marketing efforts will be two seasonal campaigns – one in summer
focusing on our farmers and farm programs, and one in winter designed to encourage shopping at
the Market during the busy holiday season. A third campaign will take place in the spring
“shoulder season” and focus on promoting the Market’s character and qualities – local, authentic,
unique. Whenever possible, messages about the convenience and affordability of our parking
garage will be woven into these campaigns.
To support these communications efforts we will begin an update of the look of our website in
4Q 2012, to launch sometime in early 2013. We will also be updating and expanding our
brochure to better educate consumers about the Market and our businesses as well as to leverage
new maps and navigation landmarks developed as part of the wayfinding project.
Social media and media relations will continue to play a key role in the day-to-day conversation
we engage in with our customers and supporters, and we will actively manage our strategy to
take advantage of new opportunities for developing customer loyalty.
MARKET FOUNDATION
The Pike Place Market Foundation is an independent, private nonprofit organization with a 40
member board of directors. The Market Foundation is an important partner with the PDA that
ensures the health of both the social fabric and the physical buildings and character of the
historical Market.
Finance Packet 10.16.12 Page 29
The mission of the Foundation is “To preserve the diversity and traditions of the Pike Place
Market neighborhood.” It accomplishes its mission by raising funds to support the operation of
the Market’s human service agencies; the Pike Market Senior Center, Pike Market Child Care &
Preschool, Pike Market Medical Clinic, and the Pike Market Food Bank.
The PDA supports the salary for 2 of its five employees in its operating budget and a portion of
two social work positions through a grant- type arrangement, one at the Pike Market Medical
Clinic and one at the Pike Market Senior Center. These and some other minor administrative
expenses are reflected in the PDA budget as our support of this program.
The PDA provides this support because we believe that the Foundation’s mission is important to
the overall Market culture, however because of its distinct mission and management over its
resources, it is not considered to be a component or department of the PDA.
There are two proposed changes for the 2013 Budget:
-Additional support for the Resident Advocate Program.
-Support the Volunteer Program
Volunteer Program
The Pike Place Market Foundation (PPMF) is investing time and resource into creating a
volunteer program to engage members of the community and donors who seek ways to be
involved in the work of foundation and the service providers in the Market.
The motivation for creating this program stems from an analysis of the operations of the service
providers and the Foundation regarding “how can the PDA help build capacity to address the
increasing needs of the clients in the Market service structure”. The answer is to build a
sustainable structure to engage more volunteers in more ways. PPMF currently has an
extremely limited structure and there is no agency-wide volunteer program. Each organization
involves volunteers in only limited ways (special events, limited office work, Board and
committees). All four service agencies agree that to have a streamlined, efficient system for
recruiting, training and placing volunteers in projects throughout the market will greatly enhance
their ability to serve their clients.
The PPMF has been accepted as a site for an Americorp-Vista volunteer service member and
will be “hiring” a service corp. member in Jan. 2013 to create the volunteer program for the
whole family of service providers. They will be housed at the PPMF. In addition to this
position, the PPMF is working in coalition with the food bank and the Senior Center to “hire”
two more service members, one to work exclusively on building the food bank’s capacity to
procure food resources and the second to work with the PDA on food programs such as
FoodLink, Market Fresh Coupons and other Farm-to-Table programs.
Finance Packet 10.16.12 Page 30
Atrium Kitchen and Economy Event Rooms
Developing the Atrium Kitchen and Economy Market Event Spaces creates an opportunity to
expand the relationship with our existing customers and to cultivate new ones by allowing
shoppers to complete the farm-to-table cycle while enjoying a unique experience in one of the
city’s most iconic locations.
Facilities include the historic Goodwin Library with a view of Pike Place, a large meeting room
and annex (formerly operated as Top of the Market), and the Economy Atrium. All levels are
now accessible by elevator with a convenient loading bay on Post Alley.
The newest feature will be the Atrium Kitchen—a new commercial kitchen designed specifically
for educational events, private dining and catering for larger events, as well as providing an
approved space for Market farmers to prepare samples and clean the equipment used in their
daily businesses.
This business venture is designed to bring additional food shoppers into the Market, to celebrate
its location and identity as a food destination of international appeal, and on a very simple basis,
to introduce people to the joy of cooking and sharing meals together. Importantly, these new
facilities are especially suited to creating activation in the Market during winter months and on
weekdays, times most likely to attract local, regular customers.
The facilities will also provide a unique opportunity to host special food-related entertainment—
networking groups, public demonstrations, product launches, and competitive cooking events—
targeted toward the ever-increasing “foodie” audience.
The service will be of value to current tenants of the Pike Place Market PDA seeking temporary
venues for special events they are unable to host on their premises, in addition to the many
farmers who have expressed interest in using a commissary space to prepare their product and
clean their equipment. There are also opportunities to expand current PDA programs, which may
include providing ongoing education to farmers interested in developing cottage-industry
businesses and value-added goods; cooking classes that may range from basic cooking skills to
“tasting tours” of the Pike Place Market; and possible partnerships with area non-profits that
promote nutrition and food security.
The rental of these facilities should provide sufficient revenue to cover operating expenses and
approximate rental income that would be derived from this commercial space if leased to a
tenant. At the end of twelve months of continuous operation, a progress report including
financial performance, client satisfaction and advance bookings will be presented to Council.
Finance Packet 10.16.12 Page 31
October 16, 2012
PDA Operating Budget
Pike Place Market Preservation and Development Authority
2013
Proposed by the Pike Place Market PDA Staff
Finance Packet 10.16.12 Page 32
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
COMMERCIAL REVENUE
311100-00 Base Rent - Retail 3,133,428 3,152,989 3,183,256 Based on rent increase of 3% CPI, with 3% overall vacancy factor.
311100-01 Base Rent - Office 310,995 283,142 441,345 Office rent includes services and studios. Increase due to leasing office
being held for Renovation. Garage commercial revenue is shown on
Garage Revenue Budget of approx. $36,904; ATMs revenue included.
311100-05 Additional Rent - Capital Improvments 8,920 8,897 8,892 Based on actuals. Used for items charged as additional rent related to a
specific capital project to improve a tenant space. (Hands of the World
FCU, City Fish Cooler, Choice Produce Cooler)
311100-04 Prep Space 23,722 26,695 45,176 Prep space for LePanier, Mr. D's, Max's also includes Piroshky Piroshky
& PP Chowder. Rent shows prior year plus 3% increase.
newAtrium Kitchen and Other Rentable
Spaces- 80,000
Rents from Atrium Kitchen, Atrium Conference Room,Elliot Bay
Conference Room.
Total Base Rent 3,758,669
311200-00 Percent Rent 2,577,357 2,596,722 2,661,810 2,661,810 Based on Jul 2011 thru Jun 2012 actuals, Yardi report shows a 3%
increase over prior year budgeted amount for same period.
311300-00 CAUT - % 853,632 852,302 894,579 29% of Base Rent - Retail (Less Garage & LB)
311400-00 COMA - % 883,102 881,752 925,426 30% of Base Rent - Retail. (Less Garage & LB)
311400-01 Livingston-Baker CAM 31,000 27,715 27,030 Based on prior year actuals. (does not inlcude water/utility charge).
Clinic does not pay in this category.
Total CAUT/COMA 1,847,035
311400-05 CAM - Pine Bldg (DELETE) 16,769 14,673 - - Delete - No more Lorig Leases; All PDA Leases as of 2012
311600-00Third-Party Billed Utilities
(Electricity/Water)480,000 484,287 480,000
Payments from Priority Submetering billing of electricity & water
(Electricity 25K per month, water 15K per month).
311800-00 Direct Garbage - Commercial 136,700 147,600 156,952 Based on August 2012 charges which are set-up as standard monthly
charges due to the fluctuation of prior year renovation credits.
311900-00 Direct Pest Control - Commercial 24,000 27,178 27,959 Based on August 2012 charges wich are set-up as standard monthly
charges due to the fluctuation of prior year renovation credits.
311950-00 Direct Gas - Commercial 4,280 3,498 4,280 Used last year's budget $ as placeholder. Based on last 5-years estimate
$3,000 average (w/o 2009 value)? Need to find a baseline.
313300-00 Hood Cleaning 3,500 2,562 2,220 Reimbursement - Hood Cleaning (offsets 481011-03). Based on annualize
actual charges.
Total Direct Utilities / Other 671,411
313100-00 R&M Reimburse - Maintenance 5,000 3,091 5,000 R&M from work orders for labor and parts billed to Commercial tenants.
Actuals will vary depending on work order requests.
313500-00 R&M Reimburse - Facilities 300 - 300 R&M from work orders for labor and parts billed to Commercial tenants.
Actuals will vary depending on work order requests.
488313-00 Sales Tax - R&M Reimburse (460) (268) (465) Sales tax due on materials purchased.
Total Tenant Reimbursement-net tax 4,835
314200-00 Storage 82,000 95,935 127,482 127,482 Charage is $.25 per cu/ft. Increase due to all storage rates updated in
2012; Currently 8 vacancies; anticipate leasing at least 50%.
314200-01 Cooler 46,814 35,436 42,500 42,500 Charge is $.30 per cu/ft and shows current Rent w/NO vacancies.
314500-00 Late Fees - Rent 8,000 8,864 7,000 Based on 2012 Annualized Actuals Actuals.
314500-01 Late Fees - Sales Report 7,100 7,150 7,000 Based on 2012 Annualized Actuals Actuals.
314500-02 Penalties / Service Charges 300 1,200 1,000 Based on 2012 Annualized Actuals Actuals.
Total Late Fees / Service Charges 15,000
TOTAL COMMERCIAL REVENUE 8,636,459 8,661,419 9,128,742 9,128,742 COMMERCIAL REVENUE
Page 1
Finance Packet 10.16.12 Page 33
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
RESIDENTIAL REVENUE
322000-00 Gross Potential Rent 2,526,410 2,526,410 2,607,046 All Market Rate units will have a rent increase from 2% to 3%. Included
here are also Sanitary and LB units with HCV. HUD units will have an
increase 1.0%-1.5%
322010-00 Vacancy (255,629) (260,152) (116,406) Vacancy ranges from 3%-5%
Total Tenant Residential Rent 2,270,781 2,266,258 2,490,640
324200-00 Storage 7,000 7,897 8,000 8,000
324500-00 Late Fees-Service Charges 3,000 2,715 3,000 3,000 Market-rate & Low Income=$35; Very Low Income = $5 on the 5th plus
$1 per day not exceeding $30.00/mo/HUD.
329200-00 Laundry 15,000 18,082 18,000 Contracted coin operated machines in Residential buildings
488329-00 Sales Tax - Laundry (1,500) (1,568) (1,562) 9.5% sales tax.
Total Laundry - net tax 16,438
TOTAL RESIDENTIAL REVENUE 2,294,281 2,293,384 2,518,078 2,518,078 RESIDENTIAL REVENUE
Page 2
Finance Packet 10.16.12 Page 34
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
QALICB (Net)
358010-00QALICB Share of Fairley and Leland
Revenue(2,159,988) (2,159,988) (2,429,828) (2,429,828) Fairley and Leland revenues transferred to QALICB.
358020-00Reimbursement Operating Costs from
QALICB1,511,455 1,511,455 1,556,798
PDA is reimbursed for Operating Costs from QALICB-Per QALICB
Operating Agreement.
358030-00 Lease Payment from QALICB 406,844 406,844 419,800 PDA is reimbursed for Master Lease payment from QALICB-Per QALICB
Operating Agreement.
358040-00 Mgt Fee from QALICB 140,349 140,349 320,575 PDA is reimbursed for Management Fee from QALICB-Per QALICB
Operating Agreement.
386400-06Investment Income from Investment
Fund QB152,789 52,789 52,789 Investment Income from Investment Fund QB1 (only the cash portion)
Total Reimbursement from QALICB 2,349,962
TOTAL QALICB (48,551) (48,551) (79,866) (79,866)
Page 3
Finance Packet 10.16.12 Page 35
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
QB2 (Net)
359010-00 QB2 Share of Revenue (4,463,651) (4,463,651) (4,634,154) (4,634,154) Corner Market, Sanitary, Economy, Triangle, Stewart, Soames
359020-00Reimbursement for Capital
Improvements paid by PDA2,049,337 2,049,337 767,386
PDA is reimbursed for Capital Improvments and Tenant Improvements-
Per QB2 Operating Agreement.
Grant from QB2 1,210,913 Grant from QB2 per QB2 Board approval
359030-00 CAUT & COMA 1,064,059 1,064,059 1,074,484 PDA is reimbursed for CAUT and COMA payment from QB2-Per QB2
Operating Agreement.
359040-00 Mgt Fee and Developer Fee from QB2 698,980 698,980 928,704 PDA is reimbursed for Management Fee and Developer Fee from QB2-Per
QB2 Operating Agreement.
386400-07Investment Income from Investment
Fund QB2641,207 641,207 641,207 Investment Income from Investment Fund QB2
Total Reimbursement from QB2 4,622,694
TOTAL QB2 (10,068) (10,068) (11,460) (11,460)
Page 4
Finance Packet 10.16.12 Page 36
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
DAYSTALL AND FARM REVENUE
333200-00 Daily Crafts 730,000 720,060 752,000 752,000 Plan to recruit 20 new craftspeople. We currently have 210 permitted
craftspeople. Propose a $.20 rent increase per day.
333300-00 Daily Farmers 210,000 219,569 235,000 235,000 Propose a $.20 rent increase per day. We anticipate to maintain our rolls
at 80 farmers.
334200-00 Cooler Rent 6,200 7,146 12,500 12,500 We anticipate adding new farm coolers.
334300-00 Locker Rent 50,200 59,145 51,000 51,000 There will be some displacement with possible reno of Stewart House
locker area.
334500-00 Performer Permits 9,000 12,680 10,500 Estimate 350 performers permits $30.
334500-01 Craft Permits 8,400 7,630 8,050 Estimated 230 craft permits at $35.
334500-02 Farm Permits 2,800 3,045 3,000 Estimated 80 farm permits at $35.
Total Permit Revenue 21,550
334410-00 North Arcade Lights 50,000 50,000 50,000 50,000 Based on April' event.
334100-00 Rummage Hall 10,400 12,950 12,630 12,630 Restructure rents: $35 per day Mon-Thurs / $65 Fri-Sun. (current is $50
per day) to attract more renters to the weekdays.
488314-00 Sales Tax Rummage Hall (988) (1,200) (2,007) (2,007) Sales tax rate of 9.5%.
334500-03 Late Fee - Rent 11,400 14,675 12,000 12,000 Anticipate an average of 40 late fees per month at $25 (craft & farm
accounts if paid after the 25th of the month)
TOTAL DAYSTALL REVENUE 1,087,412 1,105,700 1,144,673 1,144,673 DAYSTALL REVENUE
Page 5
Finance Packet 10.16.12 Page 37
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
SURFACE PARKING REVENUE - Blanchard, Desimone & Lenora
355100-00 Surface Parking - Daily 630,000 638,613 650,000 Slight increase based on Republic estimate and projected loss of parking
in area.
355100-07 Surface Parking - Monthly 110,000 118,426 125,000 Desimone & Blanchard monthly revenue will remain static.
488355-00
&442033-01Sales Tax & B&O Tax (61,783) (64,784) (66,355) 9.5% sales tax on Daily & Monthly revenue and B&O Tax.
488355-01 Commercial Parking Tax (75,820) (78,951) (80,868) 12.5% tax
Total Surface Parking - net tax 627,777
355100-11 Parking Reimbursement - Farmer 1,500 1,100 1,500 1,500 Reimbursement from Farmer program.
355300-00 Bridge Maintenance Reserve (4,000) (4,000) (4,000) (4,000) City Parking agreement - maintain skybridge (code 211560-00).
350170-00 City Share of Revenues (236,526) (247,074) (246,460) (246,460) Contract with City: 35% - 45% of revenue reimbursed to City.
TOTAL SURFACE PARKING
REVENUE363,371 363,330 378,817 378,817 SURFACE PARKING REVENUE
Page 6
Finance Packet 10.16.12 Page 38
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
GARAGE REVENUE
345100-00 Garage Revenue - DAILY 1,761,000 1,826,092 1,850,000 Slight increase in daily revenue due to decrease in on-street parking and
city parking promotion.
345100-05 Garage Parking Validation 39,000 57,813 30,000 Seeing decrease in validation purchases.
345100-07 Garage Revenue - MONTHLY 244,000 256,595 250,000 Slight increase in monthly passes, however no new monthly passes will be
sold.
499033-00 Sales Tax - Garage (160,518) (166,481) (168,350) 9.5% sales tax
499033-04 Commercial Parking Tax (212,094) (219,054) (221,513) 12.5% tax
Total Parking Garage - net of taxes 1,754,965 1,740,137
345100-08 Parking Pass Reimbursement 8,800 4,808 6,000 Inter-department reimbursement for parking passes.
346010-00 Farmer Program Reimbursement 3,200 2,835 3,200 Reimbursement from Farmer program.
Total Parking Reimbursement 7,643 9,200
345200-00 Garage Base Rent - Office 48,237 48,077 36,904 Two commercial tenant s. Possible vacancy during portion of year.
345300-01 Garage - Coma% 3,430 3,432 3,430 Food Bank charges.
345500-00 Garage - Direct Pest Control 690 657 700 Food Bank charges.
345600-00 Garage Late Fees - Rent - - Late rent fee.
345700-00 Garage Late Fees - Sales Report - -
Total Commercial Rent 52,166 41,034
345800-00 Garage - Investment Income 1,261 855 1,000 LGIP- PC-1 CRRF, and TB on Bond Reserves.
345900-00 Garage - Interest Income 5 - - Interest earned on garage revenue account.
Total Investment & Interest Income 855 1,000
TOTAL GARAGE REVENUE 1,737,011 1,815,629 1,791,371 1,791,371 GARAGE REVENUE
Page 7
Finance Packet 10.16.12 Page 39
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
MARKET FOUNDATION REVENUE
357200-00 Market Fresh Coupon Contribution 20,000 22,000 20,000 Distributed to low income shoppers redeemable at farm tables.
Based on Market Foundation's determined allocation.
Total Contribution - Food Programs 20,000
TOTAL MARKET FOUNDATION
REVENUE20,000 22,000 20,000 20,000 MARKET FOUNDATION REVENUE
Page 8
Finance Packet 10.16.12 Page 40
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
MISCELLANEOUS REVENUE
384800-00 Security Service Contracts 38,460 38,675 40,795 Security contract service for non-PDA tenants (The Champion Bldg,Inn At
the Market, Sur La Table-Corporate, South Arcadia). 5.48 % Increase
384800-01 SPD Security Contracts 12,960 11,805 11,640 SPD contract service for non-PDA Tenants(the ones above plus few more).
Total Security Service Contracts 52,435
386100-00Management Fee from Las Senior
Housing LLC74,000 75,533 76,220
9% of LLC revenue based on Agreements;plus $20K(indexed 3% per
year) Company Management Fee per LasLLC agreement.
386200-04Management Fee from PPM Funding
LLC22,657 22,657 - Management Fee from PPM Funding LLC (NMTC) ends 2012.
Total Management Fee 76,220
386200-00 Investment Inc - PDA Ops 4,800 4,181 4,800 Investment income on general operating and PDA Bond Reserves.
386200-01 Investment Inc - PDA CRRF 25,000 22,005 23,000 Investment income on Capital Reserve held in LGIP.
386400-00 Interest Income - PDA Ops 220 199 200 Interest income on Residential security deposit, Sanitary Reserve.
386400-03 Interest - LIHS 481 406 400 Interest income on Low Income Housing reserve.
Total Investment / Interest Income 28,400
387300-00 Constituency Revenue 500 308 400 400 Constituency annual dues. Based on prior years' average.
389100-00 Misc Revenue - Non-taxable 32,000 30,584 32,000 32,000 COBRA Admin fee, and Chase Bank reimbursements based on actuals.
Unexpected misc income coded here, though not budgeted.
389610-00 Keys and Access Card Revenue 2,100 2,380 2,500 2,500 Fee for replacement of lost keys, cards, fobs. Based on 2012 actuals.
488389-00 Sales Tax - Key & Access Cards (182) (1,594) (216) (216) 9.5% Sales Tax.
389600-00 Filming/License Revenue 13,750 22,211 22,000 22,000 Anticipated filming and site fees (an estimate based on past few years). We
are accomodating more requests and working with the Seattle Film Office.
389620-00 Trademark / Royalties Revenue 68,000 68,552 75,000 75,000 Current agreements call for royalty payments in 2013 of $70,500; a
percentage fee paid from agreement with Sasquatch Books. Other income
from new agreements that include the use of PDA trademark.
TOTAL MISC REVENUE 294,746 297,902 288,739 288,739 MISCELLANEOUS REVENUE
TOTAL REVENUES 14,374,660 14,500,745 15,179,094 15,179,094
Page 9
Finance Packet 10.16.12 Page 41
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
COMMERCIAL EXPENSES PROPERTY MANAGEMENT
484501-00 Salaries - Commercial 242,881 243,159 252,597 4 FTE
484502-00 Payroll Taxes 24,290 24,903 25,262
484502-01 Benefits 29,613 28,984 27,386
Total Payroll Expenses - Commercial 305,245
484503-03 Garage Parking Expense - 600 600 Chaser Tickets for Garage to use for Express Credit Union Employee plus
miscellaneous.
New Wifi Services - Express Credit Union 660 660 Monthly Fee for wifi connection in LaSalle building - Express Credit
Union Use. Based on $55 per month fee. (Should this be added to the IT
budget or stay here?)
484531-00 Metro & MID Fees 7,700 8,368 8,500 8,500 Annual Dues - MID, LID; 67% Commercial; 33% Garage. Based on
Metro & MID Fees paid 2012.
484532-00 Taxes - Property 5,700 6,976 7,200 7,200 Based on taxes paid in 2012 ($7,000) plus 3% increase.
484533-00 Taxes - B&O 4,042 4,082 3,500 3,500 Service & Retail B&O - Rummage, Service Chrg, Security Contracts,
Filming, Consulting. Based on annualized Actuals for 2012.
484537-00 Bad Debt - Commercial 30,000 25,844 15,000 15,000 Uncollectible non-payment of tenant A/R. Anticipate more than 2011
budget ($10K), but less than 2012 actuals ($26K thru July).
484542-02 Tenant Consulting & Recruitment 40,000 17,870 18,000 18,000 Tenant Consulting, Recruitment including PDA MHC Application Fees
484543-02 Legal Expense 5,000 6,604 5,000 5,000 Tenant issues; material lease changes; compliance.
484545-00 Advertising - Vacancies 1,000 70 1,000 1,000 Use of internet and other sources for advertising vacancies
484546-00 Highstall Coupons Redemption 15,000 15,401 15,000 15,000 Coupons for low-income shoppers redeemable at highstalls.
484547-00 Supplies 500 2,687 500 500 Miscellaneous property management supplies
484549-00 Periodicals / Dues 1,000 841 1,250 1,250 ULI, IREM, Periodicals.
484550-00 Tenant Claims 2,000 2,697 2,000 2,000 Tenant product damage.
484553-00 Signs - Repair & Replacement 10,000 11,363 5,000 5,000 Wayfinding and directional signage - Misc demolition
TOTAL COMMERCIAL EXPENSE 418,726 399,849 388,455 388,455 COMMERCIAL EXPENSES
Page 10
Finance Packet 10.16.12 Page 42
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
RESIDENTIAL EXPENSES PROPERTY MANAGEMENT
485001-00 Salaries - Residential 342,545 358,935 354,730 8 FTE
485001-01 Overtime 1,000 2,248 2,000
485002-00 Payroll Taxes 38,394 38,491 35,455
485002-01 Benefits 59,222 56,337 57,363
Total Payroll Expenses - Residential 449,548
485003-03 Garage Parking Expense 300 15 150 150 CMS, Auditors, HUD, Consultants, inspectors & housing industry visitors
485010-00 R&M - Misc. Contracts 32,125 27,590 32,000 32,000 Outside contractor - carpet cleaning 4x/yr & common area painting, mold
assessment, biohazard clean-up. Bed bug clean-up ($875.00X15); ADD:
Vinyl floor cleaning; Bed bug chemicals
485011-01 Cable TV 4,200 6,755 4,200 4,200 For 5 on-site staff
485019-01 Building Internet Access 3,360 1,460 2,600 2,600 Tenant internet access: LB,Market House & Stewart Hosue
485029-01 Reimbursement - LAS LLC (51,056) (59,562) (57,538) (57,538) Payroll expense reimbursement:1Mng @75% and 1 Asst. Mgr @ 50%.
485033-00 Taxes - B&O 461 442 461 461 Service & Retail B&O - Service Chg, Laundry.
485033-01 Taxes - Property 3,200 2,662 3,200 3,200 Property tax for Residential.
485037-00 Bad Debt - Residential 5,000 7,389 5,000 5,000 Uncollectible rents due to evictions, deaths
485041-00 Credit Reference - Residential 2,400 3,398 2,000 2,000 Credit references for potential new tenants. Actuals vary.
485044-00Tenants Retention/Relation
Expense/Social Services4,000 1,900 4,000 4,000
Tenants Appreciation/Meeting/ Get-together (Summer & Holiday) and
Event Decorations; $10/unit/year; Social Services
485042-00 Consulting 6,000 6,244 5,000 5,000 HUD issues, submittals & compliance review, REAC in-house training -
due to increased HUD requirements. Sheila King will be retained for
consulting: RHA, IREM, Spectrum, WMFHA, WSHFC, NCHM,
485043-00 Legal Expense 3,000 360 3,000 3,000 Residential issues. Actuals vary. Fees increased per L/T and Pucket &
Redford services back-up added cost due to evictions other for non pym't
of rent.
485045-00 Advertising - Vacancies 1,500 223 1,500 1,500 Advertising and tenant eligibility verification for apartment vacancies.
485048-00 Uniforms 4,000 3,640 5,000 5,000 Uniform for 7 employees plus summer clothes
485047-00 Supplies - R & M 5,200 5,258 5,200 Supplies for in-house work on Residential units, community rooms and
other needs.
485047-01 Supplies - Misc 2,000 641 2,500 Miscellaneous expenses for Residential: laudry.
Total Supplies 7,700
485049-00 Periodicals/Dues 1,000 912 1,000 1,000 AHMA (Affordable Housing Mgr) dues based on $2 per unit and $250
annual membership for 3 HUD buildings; RHA, IREM, WMFHA; WSHFC,
NCHM, NAHMA
TOTAL RESIDENTIAL EXPENSE 467,851 465,338 468,821 468,821 RESIDENTIAL EXPENSES
Page 11
Finance Packet 10.16.12 Page 43
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
DAYSTALL EXPENSES PROPERTY MANAGEMENT
485501-00 Salaries - Daystall 97,131 110,992 135,898 3 FTE
485501-01 Overtime -
485502-00 Payroll Taxes 12,627 14,697 16,307
485502-01 Benefits 14,807 14,330 20,539
Total Payroll Expenses - Daystall 172,744
485503-03 Garage Parking Expense 400 221 400 400 $5 value: bell ringers, inspections, craft recruitment, screening committee,
volunteers. We are required by Daystall Rules & Regs to have 5
community screeners @ our screenings.
485530-00 Screening Inspections - Staff 500 316 500 500 Travel expenses for current and new permit holder screenings.
485533-00 Taxes - B&O 19,996 21,194 21,476 21,476 State & City B&O tax - craft & farmer revenue, permits, North Arcade
Lights event.
485537-00 Bad Debt - Daystall 1,000 1,873 1,000 1,000 Uncollectible non-payment of tenant A/R.
485543-00 Legal Expense 2,500 - 2,000 2,000 Potential litigious Daystall (craft, performer) issues that would require
legal advise.
485545-00 Craft Recruitment & Retention 1,800 996 1,800 1,800
Supplies for retaining craft tenants, business development workshops. Two
workshops in the off season. Recruitment supplies. Contributing to the
Daystall breakfast. Produce a recruitment pamphlet. Tenant holiday
greeting cards.
485550-00 North Arcade Lights 50,000 45,712 50,000 50,000 Based on April's event.
485546-00 Daystall events 2,000 - 2,000 2,000 V-Day card making tent, Buskers Fest, And an undetermined craft event.
485547-00 Holiday buttons and stickers 1,000 - 1,000 1,000 Promotional materials for craftspeople during holiday
485551-00 Daystall Program Materials 100 86 100 100 Incidentals we can't order through the front desk or need right away, like
chalk/spray paint/MM pads.
TOTAL DAYSTALL EXPENSE 203,861 210,417 253,020 253,020 DAYSTALL EXPENSES
Page 12
Finance Packet 10.16.12 Page 44
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
SURFACE PARKING - Blanchard, Desimone & Lenora PARKING
442011-02 Contract Management Fees 114,033 106,919 118,000 118,000 Based on 2012 actuals, 18.8% of net revenue-Republic Parking
Mangement fee for surface lots.
442032-01 Taxes - Property 1,400 1,491 1,500 1,500 Based on 2012 actuals.
TOTAL SURFACE PARKING
EXPENSE115,433 108,410 119,500 119,500 SURFACE PARKING EXPENSES
Page 13
Finance Packet 10.16.12 Page 45
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
GARAGE EXPENSES PARKING
499001-00 Salaries - Garage 88,788 91,160 92,197 3 FTE
499001-01 Overtime 1,500 2,986 3,000
499002-00 Payroll Taxes 11,737 11,205 12,181
499002-01 Benefits 18,827 20,082 20,530
Total Payroll Expenses - Garage 127,908
499010-01 R&M - Cleaning 3,000 2,610 4,000 Vacuum truck monthly, annual scubbing.
499010-02 R&M - Equipment Repair 5,000 25,055 10,000 Based on 2011-12 actuals.
499010-06 R&M - Painting 6,000 - 6,000 We will need to re-paint all stall #s, lines, directional arrows,etc.
499010-20 R&M - Elevator Repair 5,000 7,896 5,000 Repairs which not covered under contracts (Maint takes care of this).
Total Misc Contract Services 25,000
499011-02 Contract - Elevator 20,000 20,416 20,000 Based on the actuals of 2012.
499011-06 Contract - Landscape Maintenance 5,000 2,852 5,000 Landscaping north slope and south greenbelt.
Total Annual Contract Services 25,000
499047-02 Contract - Uniforms 3,500 2,346 3,500 3,500 Staff Uniforms per Union contract - 3 staff.
499051-00 Miscellaneous Expenses 2,000 626 3,000 3,000 add'l radio, tools & supplies.
499015-00 Electricity 43,500 43,905 49,000 49,000 Based on the actuals of 2012. 3.3% estimated rate increase.
499016-00 Garbage 5,000 6,383 8,000 8,000 Based on the actuals of 2012. Increased service required.
499019-00 Telephone 4,000 2,769 3,700 3,700 Based on the actuals of 2012.
499021-00 Permits & Inspections 1,200 - 1,200 1,200 Permit for pedestrian skybridge and elevator inspections.
499022-00 Business License 6,075 546 1,000 1,000 Based on the actuals of 2012.
499023-00 Metro & MID Fees 3,500 3,586 3,800 3,800 Annual dues-MID, LID: 67% Commercial and 33% Garage. Based on the
actuals of 2012.
Garage - continue >
Page 14
Finance Packet 10.16.12 Page 46
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
GARAGE EXPENSES (continued) PROPERTY MANAGEMENT
499029-01 Facilities Services 29,000 29,000 38,000 Garage facilities reimbursement.
499029-02 Maintenance Services 11,000 11,000 11,500 Garage maintenance reimbursement.
499029-03 Security Services 94,000 94,000 85,000 Garage security reimbursement.
499029-04 Management Services 68,000 68,000 68,000 Garage management reimbursement.
499029-05 Finance Services 48,000 48,000 50,000 Garage accounting reimbursement.
499029-07 Information Systems Services 9,000 9,000 12,000 Garage IT reimbursement.
499029-06 Administrative Services 52,000 52,000 50,000 Garage administrative reimbursement.
Total Reimbursements 314,500
499031-00 Taxes - B&O 12,433 13,305 13,457 13,457 Retail & Service B&O tax - Daily, Monthly, validation. Based on 2011-12
actuals
499034-00 Insurance 54,760 46,417 52,390 Insurance premium - 5% increase after 5/1/2013.
499034-01 Insurance Claims 500 - 500 Insurance deductibles and claims not covered for parkers.
Total Insurance 52,890
499045-00 Advertising - - -
499047-00 Supplies - Misc 2,500 690 2,500 Sign mounting adhesives, padlocks, cones, etc.
499047-01 Supplies - Tickets 10,000 - 6,000 Supplies for the automated system. Tickets (both entrance and
promotional chaser tickets), credit card rolls, ribbon, etc. Supplies
purchased in 2011 carried through 2012.
Total Supplies 8,500
499070-00 Bank Service Charges 1,000 780 1,000 Bank of America service fees. Fees are higher from the prior years.
499049-00 Credit Card Expense 54,000 60,000 66,000 Service fees on credit card transactions. Anticipate a higher usage of
credit card based on 2011-12actuals.
Total Bank Service Charges 67,000
499053-00 Signs - - 1,000 1,000 Sign replacement at Western Ave and Alaskan Way entries.
499082-00 PC1 Condo Dues 25,000 28,862 31,000 31,000 Yearly dues for PC1 South Condo.
TOTAL GARAGE EXPENSES 704,820 705,477 739,455 739,455 GARAGE EXPENSES
Page 15
Finance Packet 10.16.12 Page 47
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
FACILITIES EXPENSES OPERATIONS
480501-00 Salaries - Facilities 951,443 982,081 997,695 26 FTE. Night Operations Mgr. budgeted under Facilities.
480501-01 Overtime 20,000 18,910 24,000 Based on prior years' actuals and staffing for events.
480501-02 Special Events Reimbursement - No contracted events for Facilities: extra work for events handled with OT
480502-00 Payroll Taxes 136,002 137,611 143,037
480502-01 Benefits 192,472 182,115 184,753
Total Payroll Expense-Facilities 1,349,485
480510-00 R&M - Miscellaneous 2,000 3,693 2,000 R&M by outside contractors not on annual contract; contracted flood
cleaning, carpet cleaning, etc.
480510-01 R&M - Compactor/Lift arm/Baler 2,000 2,241 2,500 R & M for baler, tote lifts, lift arm & compactor. Based on 2012 actuals.
480510-02 R&M - Cleaning Equipment/Repair 5,500 2,579 5,550 Equipment for both Residential and Facilities replacement parts and
repairs.
Total Repairs & Maintenance 10,050
480511-01 Contract - Windows 33,000 37,322 37,300 Back to regular contract schedule with the end of Phase 2 and Phase 3
renovation.
480511-03 Contract - Uniform Rental 13,000 12,729 14,000 Based on 2012 actuals.
480511-04 Contract - Deodorizing System 2,500 2,423 2,500 Main Chute & Sanitary Dumpster room deodorizing system.
Total Annual Contract Services 53,800
480529-00 Reimbursements - PC-1 Condo (2,400) (2,400) (2,600) Reimbursement for facilities time in PC1 South Condo.
480529-01 Reimbursement - Garage (29,000) (29,000) (38,000) Reimbursement for facilities time in Garage.
480529-02 Reimbursement - LaSalle LLC (19,000) (19,000) (20,000) Reimbursement for facilities time in LaSalle residential.
Total Reimbursements (60,600)
480547-00 Supplies - Misc 2,000 1,900 3,100 Locks, cones, supplies storage materials. Add monthly service for
COMECOAtrium entry mats & north Fairley ramp for 2013 (maybe best
added as new contact for $1100).
480547-01 Supplies - Cleaning 72,000 66,719 74,000 Based on 2012 actuals and increased use of bags associated with
increased recycling.
480547-02 Supplies - Paper / Dispensers 68,000 60,862 68,000 Based on 2012 actuals.
480547-03 Supplies - Garbage/Recycling 4,500 4,481 4,500 Garbage cans, lids, recycling receptacles,and replacement wheels.
Recycling signage.
480547-04 Supplies - Landscaping 18,000 17,534 22,000 Annual plantings, landscape supplies. Add landscape cleanup of
Desimone Lot and Soames Dunn Courtyard and hanging baskets for
Hillclimb.
480547-05 Supplies - Uniforms 1,000 - 3,400 Rain gear & boots required by union contract.
480547-06 Supplies - Lighting 19,000 13,165 15,500 Based on 2012 actuals.
480547-07 Supplies - Safety 7,000 5,569 7,000 Protective Equipment for toxic situations: disposable gloves, Tyvek suits ,
safety glasses & dust masks for all Operations and Residential staff.
480547-08 Supplies - Market decorations 7,900 18,285 10,000 Holiday Market decorations. Replacing old items. Based on previous
year actuals and added cost of LED lighting.
Total Supplies 207,500
480548-00 Small Tools & Equipment 3,000 3,769 4,000 4,000 In-house R&M on equipment & facilities. One vacuum for Facilities & 2
vacuums, hand truck, & upright scrubber for Residential.
TOTAL FACILITIES EXPENSE 1,509,917 1,523,588 1,564,235 1,564,235 FACILITIES EXPENSES
Page 16
Finance Packet 10.16.12 Page 48
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
SECURITY EXPENSES OPERATIONS
481501-00 Salaries - Security 732,538 761,437 775,901 20 FTE
481501-01 Overtime 35,110 27,453 30,000 Increase overtime to address vacation,injury,staffing shortage,and
renovation needs.
481501-02 Special Events Reimbursement 4,000 7,708 4,000 Based on the 2012 actuals.
481502-00 Payroll Taxes 108,909 111,385 114,296
481502-01 Benefits 146,203 134,655 136,915
Total Payroll Expenses-Security 1,061,112
481501-10/11SPD Services - Night & Day 74,880 76,260 75,000
481502-11 Payroll Taxes - SPD 7,488 7,987 7,500
Total SPD Services Payroll 82,500
481510-04 R&M - Radio Repairs 2,500 2,770 2,500 Purchased more durable radios. Reduces repair expense.
Total Misc R&M Contract Services 2,500
481511-01 Contract - Laundry 5,500 3,590 No longer used.
481511-02 Contract - Brinks 4,000 3,699 4,000 No expected increase in rate from Brinks.
Total Annual Contract Services 4,000
481529-01 Reimbursement - Garage (94,000) (94,000) (85,000) Reimbursement for security time in Garage.
481529-02 Reimbursement - PC1 Condo (10,000) (10,000) (10,000) Reimbursement for security time in PC1 South Condo.
481529-03 Reimbursement - LaSalle LLC (12,500) (12,500) (12,500) Reimbursement for security time in LaSalle LLC.
481529-04 Reimbursement - Levy (5,110) (2,301) No longer used.
Total Reimbursement (107,500)
481547-00 Supplies - Misc 3,000 601 3,000 Includes replacing damaged/lost materials, annual
renewal of warranties, radio license and items of that nature.
481547-01 Supplies - Uniform 14,000 14,237 15,000 No expected increase in rates from Cintas.
481547-03 Supplies - Bicycles 500 258 200 Bike program/ tune ups,bike gear.
481547-04 Supplies - Radio 3,000 1,617 3,000 Replacing clips, batteries, antennas, ear pieces, and other items
pertaining to radios.
481547-05 Supplies - Street Control 2,200 424 2,200 Cones, signs, caution tape, that are used yr round for events, emergencies.
There isn't a secured storage fac.so replacing lost, stolen, and damaged
items is frecquent.
Total Supplies 23,400
481548-00 Small Tools & Equipment 1,800 2,742 1,800 1,800 Includes replacing lost, worn, damaged gear for individual officers.
TOTAL SECURITY EXPENSE 1,024,018 1,038,022 1,067,812 1,067,812 SECURITY EXPENSES
Page 17
Finance Packet 10.16.12 Page 49
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
MAINTENANCE EXPENSES OPERATIONS
481001-00 Salaries - Maintenance 527,172 537,653 583,629 10 FTE
481001-01 Overtime 10,000 9,442 10,000
481001-02 Special Events Reimbursement 1,000 - 1,000
481002-00 Payroll Taxes 69,962 68,002 77,342
481002-01 Benefits 74,028 68,401 74,436
Total Payroll Expenses-Maintenance 746,407
481010-00 R&M Contract - Misc. 1,000 1,559 1,000 R&M by outside contractors not on annual contract. Maintain in budget
for off normal events.
481010-01 R&M Contract - Electrical 5,000 3,197 4,000 Emergency and planned repairs by outside contractors. Decrease reflects
annualized actuals.
481010-02 R&M - Plumbing 15,000 2,569 8,000 Emergency Snake/jetting etc. Pipe replacement. Decrease reflects
annualized actuals.
481010-03 R&M - HVAC 14,000 12,811 14,000 Repairs to exhaust fans, hoods, and aging HVACS.
481010-04 R&M - Roofing 5,000 908 2,000 Flashing, gutters, metal fascia, downspouts, leak repairs, etc.
481010-05 R&M - Welding 500 - 500 Emergency repairs.
481010-06 R&M - Windows 5,000 1,752 3,200 Replacement due to damage & vandalism.
481010-08 R&M - Doors / Locks 8,000 6,883 8,000 Doors throughout market, repairs to roll-ups, Metal and wood doors,
hinges, and associated hardware. Expecting increase of repairs.
481010-12 R&M - Fire & Life Safety 15,000 22,500 21,000 Annual fire alarm & panel tests, sprinkler testing, and repairs to aging
systems. Increase reflects annualized actuals
481010-20 R&M - Elevator Repair 9,000 9,200 9,000 Off-Normal emergencies not covered by contract.
481010-23 R&M - Flooring 2,000 - 2,000 Various floor replacements, repairs, refinishing.
Total R&M Contract Services 72,700
481011-03 Contract - HVAC 21,300 20,000 20,000 Coolers, chiller, cooling tower, water treatment, & air handler
maintenance. Decrease reflects annualized actuals
481011-12 Contract - Fire & Life Safety 8,000 3,121 7,000 Monitoring fire panels. Combined Fire Panels so have less accounts.
481011-13 Contract - Uniform 8,000 8,960 8,000
481011-20 Contract - Elevator 45,000 34,962 40,000 All buildings(garage excl): Decrease reflects annualized actuals.
Total Annual Contract Services 75,000
Maintenance - continue >
Page 18
Finance Packet 10.16.12 Page 50
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
MAINTENANCE EXPENSES (continued) OPERATIONS
481029-01 Reimbursement - Garage (11,000) (11,000) (11,500) Reimbursement for maintenance time in the Garage.
481029-02 Reimbursement - LASLLC (15,200) (15,200) (16,000) Reimbursement for maintenance time in the LaSalle residential.
481029-03 Reimbursement-Levy (5,000) - - No longer used.
Total Reimbursement (27,500)
481047-00 R&M Supplies - Misc 6,000 3,804 5,000 Supplies for in-house R & M. Decrease reflects annualized actuals
481047-01 R&M Supplies - Electrical 11,000 8,126 10,000 Electrical parts & supplies. Decrease reflects annualized actuals.
481047-02 R&M Supplies - Plumbing 18,000 10,917 15,000 Plumbing supplies. Maintain budget for unexpected repairs to aging
plumbing. Decrease reflects annualized actuals.
481047-03 R&M Supplies - HVAC 7,500 4,913 7,500 Filters, water treatment, replacement motors, fan, etc.
481047-05 R&M Supplies - Welding 500 - 500 Gas, misc supplies, and metal.
481047-06 R&M Supplies - Windows 3,000 1,911 3,000 Hardware for glass & frame repairs, replace broken glass.
481047-07 R&M Supplies - Paint 10,000 11,092 11,000 Paint, and paint supplies. Increase reflects annualized actuals.
481047-08 R&M Supplies - Locks 5,000 6,518 5,000 Locks, key replacement & repairs. Increase reflects annualized actuals.
481047-11 R&M Supplies - Carpentry 2,600 593 2,500 Materials for in-house work. Lumber, trim, molding, etc.
481047-12 R&M Supplies - Fire & Life Safety 2,500 3,919 4,000 Fire detectors, alarm bells, etc. Increase reflects annualized actuals.
481047-13 R&M - Awnings 1,000 - 1,000 Repairs to awnings.
481047-18 R&M Supplies - Appliance Parts 1,500 2,134 1,500 Maintain budget for unexpected needs. Misc Parts.
481047-21 R&M Supplies - Masonry 500 500 Supplies for repairs for brick bldg.
481047-25 R&M Supplies - Signage 1,000 1,192 1,000 Common area sign expense (No Smoking; etc.), Sign-making material.
481047-30 R&M - Supplies - Keys 6,000 4,537 6,000 Key blanks, inventory for employee's and tenants.
481047-50 R&M - Commercial 5,000 5,673 5,000 Repairs in commercial tenant space. Offsets tenant revenue 313100-00.
Total Supplies 78,500
481048-00 Small Tools & Equipment 2,500 1,991 2,000 2,000 Miscellaneous job-related tools.
481050-00 Truck - Gas & Oil 1,000 962 1,000 Additional vehicle.
481050-01 Truck - Repair & Maint 1,000 2,404 3,000 Now have 3 trucks. Maintain budget for unexpected needs. Increase
reflects annualized actuals.
Total Truck Expense 4,000
TOTAL MAINTENANCE EXPENSE 898,362 856,406 951,107 951,107 MAINTENANCE EXPENSES
Page 19
Finance Packet 10.16.12 Page 51
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
CAPITAL & DEVELOPMENT EXPENSES OPERATIONS
482501-00 Salary - Capital Budget 132,615 133,408 183,104 2 FTE+ Joe Paar(% allocation between Renovation and Capital Projects)
482502-00 Payroll Taxes 13,261 14,923 18,310
482502-01 Benefits 14,807 14,601 22,714
Total Payroll Expense-Capital 224,128
TOTAL CAPITAL MANAGEMENT
EXPENSE160,683 162,932 224,128 224,128 CAPITAL & DEVELOPMENT EXP
Page 20
Finance Packet 10.16.12 Page 52
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
RENOVATION EXPENSES OPERATIONS
482503-00 Salary - Renovation 132,615 118,452 33,031 2 FTE(%allocation between Renovation and other departments)
482504-00 Payroll Taxes 13,261 11,100 3,301
482504-01 Benefits 14,807 11,353 6,411
482502-02 Reimbursement (160,683) (140,905) (42,743)
Total Payroll Expense-Renovation -
TOTAL RENOVTION EXPENSE - - - - RENOVATION EXP
Page 21
Finance Packet 10.16.12 Page 53
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
UTILITY EXPENSES UTILITIES
486013-00 Electricity 587,000 617,829 607,500 607,500 Based on 2012 actuals & estimated 3.3% rate increase.
486015-00 Water/Sewer 613,000 595,731 610,000 610,000 Based on 2012 actuals CCF totals & estimated 3.8% rate increase.
486016-00 Garbage - Dumpsters 420,000 441,494 410,000 410,000 Based on 2012 actuals and decreased tonnage from melting ice &
increased mixed recycling.
486017-00 Recycling - Mixed Paper/Plastics 83,879 75,949 100,000 Based on increased mixed recycling with additional receptacles requested
by the City for Pike Place and likely change of vendors.
486017-02 Recycling - Green 50,000 40,138 50,000 Food waste recycling volumes expected to remain constant.
486017-03 Recycling - Misc (12,000) (21,717) (18,000) Fluorescent lighting, electronics & appliance recycling off set by rebates
from cardboard & biodiesel recycling. Based on 2012 actuals.
Total Recycling 132,000
486017-05 Gas - Commercial 35,000 34,138 35,000 35,000 Based on 2012 actuals.
486018-00 Pest Control 127,500 108,677 120,500 120,500 Market wide pest control. Service levels required for bedbugs decreased
for Residential.
486020-00 Permits 13,700 13,545 13,000 13,000 Basesed on 2012 actuals.
TOTAL UTILITY EXPENSE 1,918,079 1,905,784 1,928,000 1,928,000 UTILITY EXPENSES
Page 22
Finance Packet 10.16.12 Page 54
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
INSURANCE EXPENSES OPERATIONS
486210-00 Insurance 451,000 396,637 431,297 431,297 5% increase at the renewal time, 5/1/2013.
486220-00 Insurance Claims 5,000 4,582 5,000 5,000 Insurance deductibles and claims not covered.
TOTAL INSURANCE EXPENSE 456,000 401,219 436,297 436,297 INSURANCE EXPENSES
Page 23
Finance Packet 10.16.12 Page 55
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
MANAGEMENT EXPENSES ADMINISTRATION
483001-00 Salaries - Management 594,209 586,803 613,778 5 FTE+Tamra(% allocation between Renovation and Management)
483002-00 Payroll Taxes 59,421 58,397 61,378
483002-01 Benefits 42,551 42,518 64,366
Total Payroll Expenses-Management 739,522
483003-03 Garage Parking Expense 200 130 200 200
483029-00 Reimbursements - Garage (68,000) (68,000) (68,000) (68,000) Reimbursement for management time on Garage.
483042-00 Consulting 100,000 56,975 50,000 50,000 Strategic Planning,Financial, Capital Renovation, Water Front Study.
483043-00 Legal 50,000 51,042 50,000 50,000 Legal issues, contracting policies, public info, etc.
483049-00 Periodicals/Dues 1,500 1,258 1,500 1,500 PSBJ, Economic Advisor.
483051-00 Miscellaneous 2,500 1,905 2,500 2,500 DSA Annual Meeting, hosting guests and conferences.
483080-00 Council Expenses 4,000 3,083 4,000 4,000 Retreat, receptions, council parking for committee meetings.
TOTAL MANAGEMENT EXPENSE 786,381 734,111 779,722 779,722 MANAGEMENT EXPENSES
Page 24
Finance Packet 10.16.12 Page 56
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
FINANCE EXPENSES ADMINISTRATION
483501-00 Salaries - Finance 239,208 241,344 248,670 5 FTE(adding Cashier to Accounting, and removing him from Admin)
483501-01 Overtime - 1,075 1,000
483502-00 Payroll Taxes 23,920 25,723 24,867
483502-01 Benefits 37,011 35,677 37,610
Total Payroll Expenses-Finance 312,147
483503-03 Garage Parking Expense 25 - 25 25 Garage parking coupons-$5 value.
483529-00 Reimbursements - Garage (48,000) (48,000) (50,000) (50,000) Reimbursement from Garage for Accounting services (Financials, A/P).
483541-00 Audit Expense 47,000 46,258 47,000 47,000 Independent & State audit expenses-(Ind. Audit PDA $27K; REAC
Submission $3K;State Audit $17K).
483542-00 Consulting 10,000 10,000 5,000 5,000 Finance-accounting related issues.
483548-00 Bank Service Charges 3,500 4,970 3,300 3,300 Bank of America bank service fee ($750/quarter) & supplies $500.
483549-00 Periodicals and Dues 600 449 400 400 CFO and Controller Alert & Business Journal.
TOTAL FINANCE EXPENSE 313,264 317,496 317,872 317,872 FINANCE EXPENSES
Page 25
Finance Packet 10.16.12 Page 57
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
OFFICE ADMINISTRATION EXPENSES ADMINISTRATION
484001-00 Salaries - Office Administration 221,300 220,179 276,061 5 FTE
484001-01 Overtime 1,700 421 1,700
484002-00 Payroll Taxes 22,300 22,289 27,776
484002-01 Benefits 29,608 27,016 34,230
Total Payroll Expenses - Office Admin 339,767
484010-00 R&M - Office Equipment 1,200 - 1,200 1,200 Annual maintenance for fax & lease of water filter machine.
484011-00 Contract - Office Equipment 24,000 33,117 24,000 24,000 Postage meter, copier contracts.
484012-00 Delivery Services 1,500 867 1,500 1,500 Misc deliveries: UPS, Bucky, FedEx, Airborne.
484019-00 Telephone - Basic Service 24,000 20,422 24,000 Main phone, fax, emergency lines; alarms.
484019-01 Telephone - Cell 10,000 11,591 13,000 Cell phones.
484019-02 Telephone - Long Distance 1,100 875 1,100
Total Telephone 38,100
484029-00 Reimbursements - Garage (52,000) (52,000) (50,000) (50,000) Reimbursement from Garage for Admin services (payroll, HR issues).
484046-00 Office Operations 10,000 9,181 10,000 10,000 Coffee, water, staff mtg, kitchen supplies.
484047-00 Supplies - General Office 27,000 30,807 27,000
484047-01 Supplies - Printer 7,000 5,211 7,000 Toner, drums for color and main printer. Based on 2012 actuals.
484047-02 Supplies - First Aid 4,000 4,600 4,000 Based on 2012 actuals.
484047-03 Supplies - Special Projects 500 500 1,000 Budget and special projects.
Total Supplies 39,000
484050-00 Community Employee Relations 2,000 815 2,000 2,000 Cards (get well, sympathy); holiday, staff teams.
484051-00 Miscellaneous 250 263 250 250
484054-00 Postage 23,000 22,979 25,000 25,000
484055-00 Constituency 7,000 4,482 7,000 7,000
TOTAL OFFICE ADMIN EXPENSE 365,458 363,615 437,817 437,817 OFFICE ADMINISTRATION EXP
Page 26
Finance Packet 10.16.12 Page 58
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
HUMAN RESOURCES EXPENSES ADMINISTRATION
484204-00 Staff Training and Seminars 25,000 23,397 35,000 Staff training and seminars, CPR certification.
484205-00 Temporary Personnel 3,000 800 3,000 Temporary personnel.
484207-00 Safety Committee 1,000 - 1,000 Safety program supplies and tools.
484220-00 Employee Recognition 9,000 13,821 12,000 Staff appreciation days, holiday events, etc.
Total Staff Development & Training 51,000
484220-01 Flex Plan Service Fee 2,500 590 2,500 Service fee.
484220-02 Pension Plan Service Fee 8,500 8,437 8,500 TD AMERITRADE service fees.
484220-03 Legal Benefit Admin Fee - - -
Total Service Fees - Employee Benefits 11,000
484211-00 Contract - Payroll Service 35,000 34,385 35,000 35,000 ADP payroll fee and monthly payroll cost.
484212-00 Transit Subsidy 28,000 24,000 28,000 28,000 PDA pays $40 towards employee bus & ferry pass.
484242-00 Consulting 7,000 6,907 7,000 7,000 General employee consultation with Washington Employees.
484243-00 Legal 20,000 19,875 20,000 20,000 HR issues.
484245-00 New Hire Expense 3,000 3,189 3,000 3,000 Employment ads; new hires; background checks.
484249-00 Periodicals/Dues 500 186 500 500 HR Legal Bulletins; salary surveys; SHRM membership.
TOTAL HUMAN RESOURCES
EXPENSE142,500 135,587 155,500 155,500 HUMAN RESOURCES EXPENSES
Page 27
Finance Packet 10.16.12 Page 59
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
INFORMATION SYSTEMS ADMINISTRATION
482001-00 Salaries - Information Systems 124,800 125,561 129,791 2 FTE
482002-00 Payroll Taxes 13,728 12,800 14,277
482002-01 Benefits 14,807 14,523 19,670
Total Payroll Expenses-Info Systems 163,738
482010-00 R&M Contract - Misc 1,000 822 1,000 R&M for printer.
482010-01 R&M - Telephone Repairs 1,000 1,303 1,000 Telephone equipment & repairs. New phone system under warranty & half
of current phones replaced, should reduce replacements & repairs.
Total Repairs & Maintenance 2,000
482011-00 Contract Services - Annual 46,200 40,979 47,700 47,700
Yardi Voyager (upgraded Asset/Property Mgt. software): annual contract:
Property Management & General Ledger:
10 Designated Users @ $1,646.43 ea
11 Designated Users @ $1,568.03 ea
Affordable Module:
2 Users @ $548.81 ea
5 Users @ $522.68 ea
and taxes; plan to install Check Scanning and Credit Card Processing
through Yardi --1 additional License.
482011-01 Contract - Internet Service 9,600 9,523 8,100 8,100 Domain register/hosting; IP addresses. Isomedia Bonded T1& IT Manager
ISP -- After June '13 New/faster/cheaper ISP will be used, plus yearly SSL
Cert for Exchange Server.
482011-02 Reimbursement - Garage (9,000) (9,000) (12,000) (12,000) Reimbursement from Garage (increased hours in support of garage
automation system).
482012-00 Contract - Software Subscriptions 2,500 2,480 7,500 7,500 Yearly Software Subscriptions (non-Yardi) (Anti-Virus,/Anti-Spam, Active
Directory Connector, AudioLog, Patch Management software yearly
licenses) -- Untangle $1,500, Adobe $3,300, GFI $2,400 estimates.
482047-00 Supplies - Software 5,000 3,945 4,000 Software supplies.
482047-01 Supplies - Hardware 10,000 10,123 10,000 Server, PC, printer parts, hard drive, memory, keyboards, etc.
482047-02 Supplies - Uniforms 250 100 Uniforms for IT staff.
Total Supplies 14,100
482049-00 Periodicals & Dues 1,000 411 1,000 1,000 Microsoft TechNet; newsletters, reference books.
TOTAL INFORMATION SYSTEMS
EXPENSE220,885 213,470 232,138 232,138 INFORMATION SYSTEMS EXPENSES
Page 28
Finance Packet 10.16.12 Page 60
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
MARKETING AND COMMUNICATIONS PROGRAMS
487001-00 Salaries - Marketing 185,432 158,010 197,931 3 FTE
487001-01 Overtime -
487002-00 Payroll Taxes 18,543 16,500 19,793
487002-01 Benefits 22,208 18,158 23,918
Total Payroll Expenses-Marketing 241,642
487043-00 Legal 15,000 6,122 5,000 5,000 Fees associated with legal advice as we are negotiating trademark
agreements. Line item reduced to reflect actual trending costs.
487049-00 Periodicals / Dues 250 805 250 250 Membership dues and periodical subscriptions related to marketing.
487060-00 Volunteers Appreciation 200 208 300 300 Appreciation lunch for volunteers as related to the school program.
487060-01 Volunteers Parking Expense 1,200 1,400 1,500 1,500 Garage parking chaser tickets provided to the school program volunteers
as required and other parking needs.
487065-00 Website Development 5,000 1,237 2,500 2,500 Hosting of our website and any possible web fixes, technical requests, or
other web-related issues. Increased in 2013 to accommodate updates to
user interface and development of a mobile-optimized site.
487070-00 Marketing, Agency Fee, and PR 149,000 123,867 125,000 125,000 Providing support for seasonal and institutional marketing campaigns.
487072-01 Co-Op Advertising 17,500 14,631 15,000 15,000 Tenant advertising reimbursement. Marketing advertises the availability
of funds in the Insider and on-line at pikeplacemarket.org. nearly every
single month of the year.
487075-00 School Program 12,500 2,371 12,500 12,500 Mileage, supplies and curriculum development. Includes development of
elements for online instructional support and updates to resource kits.
487080-00 PR - Public Info Materials 8,000 240 13,500 13,500 Brochure printing and distribution on ferries and at airport, through
Market Info Booth, and to convention groups. Anticipate redesign of
brochure and increased distribution in summer months.
487083-00 Sponsorship 9,000 9,893 10,000 10,000 Average sponsorship level $1,000 per organization, but actual expense
varies by event.
487085-00 Market Events and Promotions 65,000 48,490 30,000 30,000
Promotions and associated costs of those promotion that are not part of
an annual advertising campaign, such as Arcade Lights, Magic in the
Market, Flower Festival and Daffodil Day. Additional funds have been
allocated to purchase promotional materials - bags, etc. for merchant use.
Also, $594 CC machine fees and rentals (20% allocation).
487073-00 Farm Season Advertising 50,000 52,713 65,000 65,000
This line item is being moved to the Marketing budget from the Farm
budget to help accurately report the Marketing support to the Farm
Season. We may reuse banner and art from 2011 and change some of our
marketing.A dollars from traditional media to more guerilla marketing
efforts. Also, $890 CC machine fees and rentals(30% allocation).
487067-00 Mobile Application 30,000 - 5,000 5,000 Ongoing support and development of Microsoft-sponsored mobile app.
487095-00 Equipment - Marketing 1,000 365 1,000 1,000 Renting equipment (sound system, stages) for events or press conferences.
TOTAL MARKETING EXPENSE 589,833 455,010 528,192 528,192 MARKETING & COMMUNICATIONS
Page 29
Finance Packet 10.16.12 Page 61
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
FARM / FARMER'S MARKET EXPENSES PROGRAMS
437501-00 Salaries - Farm Program 133,796 138,064 86,585 2 FTE
437501-01 Overtime 1,000 498 500 Help needed in the case of illness, special events & projects.
437502-00 Payroll Taxes 18,871 18,085 11,276
437502-01 Benefits 22,209 20,503 13,693
Total Payroll Expenses-Farm Program 112,054
437504-00 Seasonal Labor 8,000 4,590 10,000 10,000 To hire seasonal help for remote markets & farm information booth, June
through Sept. Would like to expand remote markets to mid Oct.
437503-01 Travel Expense 250 202 250 250 Mileage reimbursement for out of area meetings.
437503-03 Garage Parking Expense 300 - 300 300 $5 value/staff needs car for inspection & supply pick up/WSFMA
meeting/Ag visitors.
437530-00 Farm Inspections - Contract 1,000 155 1,000 Used in the event of a complicated farm inspection.
437530-01 Farm Inspections - Staff 1,000 1,160 1,000 Inspection of new farms/periodic inspection of exsiting farms.
Total Inspections 2,000
437545-00 Farmer Recruitment 1,000 64 4,000 4,000 Recruitment materials.
437547-00 Supplies 2,000 443 1,500 1,500 Tables, sawhorses, bungees, chef demo supplies , T-shirts for staff.
437548-00 Bad Debt 1,000 - 1,000 1,000 Bad Debt - Uncollectible accounts.
437549-00 Dues/Permits 2,800 2,838 3,000 3,000 WSFMA/Tilth/Cascade Harvest Coilition/Health Dept/Fire permit/CapitaL
Press.
437545-02 Advertising-Farm related - - -
437551-00 Mkt Fresh Coupon - Printing 2,000 2,001 2,000 2,000 Printing of Market Fresh coupons for Highstall & Farm.
437551-02 Mkt Fresh Coupon - Redemption 12,500 17,034 17,500 17,500 Coupons for low-income shoppers redeemable at farm tables.
437551-03 Farmer Coupon Redemption 12,500 12,300 12,500 12,500 Summer coupons redeemable at street farm tables.
437553-01 Farmer Parking Program 5,000 3,935 4,500 4,500 Garage & Surface parking for farmers of fresh produce.
437554-00 Farmer Support Program 2,500 3,534 3,984 3,984 Display upgrades, translations, banners, Daystall Breakfast, also $1,484
CC machine fees and rentals(50% allocation).
437571-00 Farm Truck 1,000 257 1,500 1,500 Gas, maintenance & tabs, 2013 major tune-up.
437580-00 PR/Outreach 1,500 1,151 1,500 1,500 Flower Farmer promotions, wooden signs for farmers,info booth
materials.
Seed Program - 900 900 New Account: Seed Program (for diversity of produce).
SNAP/Debit 1,200 1,200 1,200 New Account: SNAP Market buck printing & signage.
437582-00 Farm focused events 2,800 1,160 5,000 5,000 V-day, Flower Fest+ other events.
437581-00 Remote Markets Direct Costs 3,000 2,058 2,000 2,000 Expenses related to remote markets/City Hall & SLU.
TOTAL FARM PROGRAM
EXPENSE236,026 231,232 186,688 186,688 FARM PROGRAM EXPENSES
Page 30
Finance Packet 10.16.12 Page 62
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
Economy Atrium Kitchen Events OPERATIONS
new acc Salary - 72,896 1 FTE
new acc Payroll Taxes - 7,289
new acc Benefits - 6,847
Total Payroll Expense-Renovation 87,032
new acc Farm Hub Market Research 20,000 20,000
TOTAL RENOVTION EXPENSE - 107,032 107,032 DEVELOPING BUSINESSES
Page 31
Finance Packet 10.16.12 Page 63
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
MARKET FOUNDATION EXPENSES PROGRAMS
457001-00 Salaries - Market Foundation 142,908 152,409 152,844 2 FTE (all of Lillian & all of Erika); 5% over reflects sharing the cost of 1
more staff; Devo assistant / volunteer coordinator to help with
campaign/Agency capacity building.
457002-00 Payroll Taxes 14,291 16,221 15,284
457002-01 Benefits 14,807 10,343 17,073
Total Payroll -Market Foundation 185,201
457002-05 Salaries - Market Foundation Staff 175,368 175,368 193,323 3 FTE. Processed and paid by PDA, reimbursed by Mrkt Foundation.
PR/Mktg FTE is at a new salary so these figures are guesses?
457002-05 Payroll Taxes 17,537 17,537 19,332
457002-05 Benefits 22,209 22,209 27,299
Staff Payroll Reimbursement (215,114) (215,114) (239,954) 3 FTE to be reimbursed by MF .
xxxxxxxx Volunteer Program - 10,000 10,000 Volunteer Program.
457006-00 Resident Advocate 68,075 67,644 83,075 83,075 $15K increase for 2013.
457047-00 Supplies 150 421 150 Deliveries, Office Supplies for PDA-related projects.
457004-00 Training 1,250 1,564 1,250 Fundraising training 2x/year. Computer training-$250 for 5 FTE's.
457003-03 Garage Parking Expense 1,600 3,840 1,600 Garage parking coupons-$5 value: Major donors, volunteers for
programs (Food Link), Staff driving for work projects.
457003-01 Travel Expense 50 - 50 Outside market parking; misc travel.
457049-00 Periodicals/Dues 2,500 2,063 2,500 NDOA, Rotary, Chamber, PSBJ.
457051-00 Misc. Expenses 510 159 1,140 - technology line - covering wi-fi ($35x12); PG cell phone ($60 x12).
Total Office Operations 6,690
457060-00 Special Projects 5,000 3,106 2,500 2,500 Adding capacity to Sr. / Clinic through staffingrather than through cash
sponsorship.
TOTAL MARKET FOUNDATION
EXPENSE251,141 257,770 287,466 287,466 MARKET FOUNDATION EXPENSES
TOTAL OPERATING EXPENSES 10,783,238 10,485,733 11,173,255 11,173,255
Page 32
Finance Packet 10.16.12 Page 64
2013 Operating Budget2012 2012 2013 2013
DESCRIPTION Revised Actuals Proposed TOTAL Explanations / Definitions / Comments
BUDGET Annualized BUDGET BUDGET
TOTAL REVENUE 14,374,660 14,500,745 15,179,094 15,179,094
TOTAL EXPENSES 10,783,238 10,485,733 11,173,255 11,173,255
NET RESULTS 3,591,423 4,015,012 4,005,840 4,005,840
DEBT SERVICE
214115-00
489067-00Bond Payment - PDA 471,264 471,264 472,332 472,332 PDA 2009 Refunded Bond
110870-00
110890-00Bond Payment - Garage 873,995 873,995 886,065 886,065 GARAGE 2001 Refunding Bond Principle, Interest and Fees
214270-00
489069-00Bond Payment - Pine Residential 169,790 169,790 169,790 169,790 2005 Bond Principle and Interest.
214280-00
489070-00Loan Payment - Pine Commercial 256,100 256,100 256,100 256,100 2005 Bond Principle and Interest.
489056-00 LaSalle Commercial NMTC Loan 120,370 120,370 - 2006 NMTC Interest only- Loan to be paid by 12/27/2012
US Bank Loan - NMTC LaSalle 709,126 709,126 - US Bank Loan(lump sum) related to LaSalle NMTC- paid off
on12/27/2012
TOTAL DEBT SERVICE 2,600,645 2,600,645 1,784,287 1,784,287
DESIGNATED RESERVES & PENSION CONTRIBUTION
484006-00 Pension Contribution 280,000 280,000 307,000 307,000 3%-6% of eligible compensation. Budget = 6%
18.8% of Net Operating Surplus(excluding Parking) and before Capital
Contribution
110970-00 LIH Interest Earned 481 497 481 481 Allocate ALL to LIH Reserve-Res: 96-40.
110960-00 Sanitary Reserve 3,205 3,205 - Reserve requirement by HUD-no longer required
110660-00 Minimum Operating Reserve - - - - Maintain 5% of Operating Revenue-Council's input for the amount of
contribution- already we have enough funds in the reserve to satisfy the
requirement of MOR
TOTAL DESIGNATED RESERVES 283,686 283,702 307,481 307,481
NET OPERATING RESULT AFTER DEBT SERVICE AND DESIGNATED RESERVES
Net Operating Result after Debt
Service and Designated Reserves707,091 1,130,665 1,914,072 1,914,072
CAPITAL RESERVE ACTIVITY
110630-00 Capital Replacement Reserve PDA 707,091 1,130,665 1,914,072 1,914,072
110670-00 Capital Replacement Reserve GAR -
Withdrawals for Capital Projects (1,396,850) (1,396,850) (1,517,168) (1,517,168)
Excess Withdraw/(Contribution) to
CRRF689,759 266,185 (396,904) (396,904)
BALANCE - - - -
Page 33
Finance Packet 10.16.12 Page 65
by Revenue Source
October 16, 2012
PDA Operating Budget
Pike Place Market Preservation and Development Authority
2013
Proposed by the Pike Place Market PDA Staff
Finance Packet 10.16.12 Page 66
PIKE PLACE MARKET 2013 OPERATING BUDGET BY REVENUE SOURCES
1. Direct expenses are allocated 100% to their respective categories
2. All other expenses are allocated based on the % sq. footage / % revenue of Commercial, Residential, Daysatall, Parking
3. Additional analysis and assumptions have been applied along the allocations
TOTAL COMMERCIAL RESIDENTIAL
DAYSTALL
Crafts & Farm
and Community
Programs and
Events
PARKING Social Services
REVENUE SOURCES sqft % sqft % rev
79% Commercial 369,660 65% 61% 9,148,728 9,068,728 80,000
18% Residential 83,989 15% 17% 2,518,072 2,518,072
3% Daystall 13,823 2% 8% 1,144,673 1,144,673
46747200%Garage &
Surface Lots98,650 17% 14% 2,156,731 2,156,731
566,122
TOTAL OPERATING INCOME 14,968,204 9,068,728 2,518,072 1,224,673 2,156,731 -
61% 17% 8% 14%
COST CENTERS
Property Management Expenses 1,780,798 370,771 468,821 559,499 360,708 21,000
Operating Expenses 3,905,458 2,696,183 790,115 226,160 193,000 -
Utilities 1,928,000 1,454,257 325,843 85,000 62,900
Insurance 436,297 265,794 84,503 33,611 52,390
Administration Expenses 2,028,829 1,230,507 431,448 165,874 182,000 19,000
Marketing 504,190 359,190 32,400 80,000 27,600 5,000
Market Foundation 287,466 287,466
TOTAL COST 10,871,038 6,376,702 2,133,129 1,150,144 878,598 332,466
59% 20% 11% 8% 3%
NET OPERATING SURPLUS 4,097,166 2,692,026 384,943 74,529 1,278,133 (332,466)
NONOPERATING REVENUE AND EXPENSES
Misc. Income 48,400 28,400 20,000
Debt Service (1,784,287) (728,432) (169,790) (886,065)
In Kind (125,000) (125,000)
NET SURPLUS 2,236,279 1,991,994 215,153 74,529 392,068 (437,466)Finance Packet 10.16.12 Page 67
PIKE PLACE MARKET 2013 OPERATING BUDGET BY REVENUE SOURCES
1. Direct expenses are allocated 100% to their respective categories
2. All other expenses are allocated based on the % sq. footage / % revenue of Commercial, Residential, Daysatall, Parking
3. Additional analysis and assumptions have been applied along the allocations
Summary:
revenue/sq foot $24.53 $29.98 $88.60 $21.86
cost /sq foot $17.25 $25.40 $82.81 $8.91
net profit/sq foot $7.28 $4.58 $5.79 $12.96
profit margin 30% 15% 7% 59%
utility/sq foot $3.93 $3.88 $6.15 $0.64
Finance Packet 10.16.12 Page 68