finance - meeting agenda · b. approval of january 15 th, 2013 minutes chair 4:35pm ii....

Finance - Meeting Agenda

Date: Tuesday, February 19th, 2013

Time: 4:30 p.m. – 6:00 p.m.

Location: Elliott Bay Room

Committee Members: Matt Hanna (Chair), Bruce Lorig (Vice-Chair), David Ghoddousi, Gerry

Kumata, Ann Magnano, and Gloria Skouge

4:30pm I. Administrative:

A. Approval of Agenda

B. Approval of January 15th, 2013 Minutes

Chair

4:35pm II. Announcements and/or Community Comments

4:40pm III. Financial Statements

A. Review of the Final Unaudited Financial Statements for the year

ending December 31, 2012

B. Review of the Financial Statements for January 2013 - PDA Operating

Statements

Sabina Proto

5:10pm IV. Checking Account Activity Report Sabina Proto

5:15pm V. Action Items

A. Action Item: Proposed Resolution 13-13 Allocation of 2012 Year

End Balance

Sabina Proto

5:20pm VI. Presentations and Discussion Items

A. Budgetary Review of Proposed Spending Resolutions

B. Pension Plan Contribution Calculation

Ben Franz-Knight

Sabina Proto

5:40pm VII. Items for the Consent Agenda Chair

5:45pm VIII. Public Comment

5:50pm IX. Concerns of Committee Members Chair

6:00pm X. Adjournment Chair

Enclosures: Minutes for January 15th, 2013

Final Financial Statements for December 2012

Financial Statements for January 2013

Proposed Resolution 13-13

Budgetary Review of Proposed Spending Resolutions 13-09 & 13-10

Finance Packet 02.19.13

Pike Place Market Preservation and Development Authority (PDA)

FINANCE COMMITTEE

Meeting Minutes

Tuesday January 15th, 2013

4:30 p.m. to 6:00 p.m.

Elliott Bay Room

Committee Members Present: Bruce Lorig, David Ghoddousi, Gerry Kumata, Gloria Skouge, Ann

Magnano

Other Council Members Present:

Staff Present: Ben Franz-Knight, Sabina Proto, Dianna Goodsell

Others Present:

The meeting was called to order at 4:31p.m. by Bruce Lorig, Vice-Chair

I. Administrative

A. Approval of the Agenda

The agenda was approved by acclamation.

B. Approval of the December 18th, 2012 Minutes

The minutes were approved by acclamation.

II. Announcements and Community Comments

None

III. Review of the Financial Statements for December 2012

A. PDA Operating Statements

Ann Magnano entered in at 4:33pm

Sabina Proto discussed the Balance Sheet and PDA Operating Statement ending for the Month of

December. Under Current Assets, there was a decrease overall; there was an increase in Unrestricted Cash

and a decrease in Misc. Accounts Receivables. She reported the following: The Designated Cash decreased

due to the transfer of funds out of the CRRF Reserve to the Operating cash for the budgeted capital

expenditures. The Restricted Cash increased due monthly contribution to the Debt Service accounts for the

PC-1 Bonds. The Current Liabilities increased mainly in the Accounts Payable. 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 decreased slightly from the prior month and the Levy Funds

received in total as of today was $ 64.67 million; amount received in 2012 YTD was $6.12 million.

Sabina Proto reported under the Accounts Receivable Activity Report, the accounts receivable decreased

during December. The Total Revenue for the end of December 2012 was $14,243,767 or over budget by

$114,107. The Total Operating Expense was $ 10,351,308 or under budget by $ 186,930. The Net

Operating Result for the end of December was $ 3,892,459 which was $ 301,037 over budget. The Net


85 Pike Street, Room 500 Seattle, WA 98101 (206) 682-7453 www.pikeplacemarket.org

Result after Debt Service & Reserves: Annual Budget was $707,091 and the actual YTD was $ 1,008,227;

this amount exceeds the budget by $301,137.

Sabina Proto presented the Revenue in the Operating Statement and stated that the Commercial Revenue

was over budget by $ 55,187. She added overall there was good performance of the Percent Rent. She

noted that we are caught up and over budget in the Office Rent; in the prior months we had been under

budget due to the unanticipated construction impacts of the Levy Phase II. She added that one of the ATM’s

has not been operational for the entire 2012 year. She stated that CAM is under budget because the loss of

revenue for the US Bank space. Direct utilities are under budget because of the vacancies in commercial

spaces during construction; this is associated with less spending on the electricity, water and sewer

expenses. She stated that Residential Revenue was over budget because of the growing occupancy; as

anticipated in the second part of the year. She reported the following; Daystall Revenue was over budget

overall, Surface Revenue was over budget especially on the monthly parking, Miscellaneous Revenue was

over budget in Management fees, filming and other revenues, Garage Revenue was over budget by 98k. She

noted that we have participating since July 1st 2012 in the AWV Parking Mitigation Program, and per

agreement with the City of Seattle we receive a $14,000 monthly fee. She added that we are up to date in

collecting that fee which amounts to $ 84,000 collected for the period July-December 2012.

Sabina Proto lastly reported that the Operating Expenses were over budget in some departments and under

budget in others. She reported that we have had additional needs for temporary work in the Residential and

Daystall & Farm departments. She also added that here have been some staffing vacancies in Management.

She stated the following: there had been extensive repair on the fire panel in the garage, credit cards fees

were over budget due to the increase in revenue, insurance rates were lower than budgeted and marketing

spending increased during the holiday season. She noted that the Percent Rent spreadsheet presents the

performance of the percent rent, concluding that the Percent Rent was over budget by $97,000 YTD,

$162,000 over budget over the same period last year. 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. The Capital Reserves total was $ 9,920,449 as of 12/31/2012. Total Capital Expenditures

(budgeted) was $1,122,149 as of 12/31/2012. The amount spent on the Waterfront Design and

Development was $494,551

Sabina Proto noted that she had spoken with US Bank and has placed pressure with the bank and they told

her they have agreed to reduce the merchant transaction fees by 50 percent. She added that the bank noted

that many of the transactions from the parking garage were from business credit cards. She stated that she

will continue to report on this issue.

Gerry Kumata inquired what the surplus in the budget from 2012 would be allocated to for 2013.

Ben Franz-Knight noted that next month there will be a discussion on the allocation of the surplus budget

from 2012; this would be followed by a resolution to approve the allocation of budget funds.

IV. Checking Account Activity Report

The Checking Account Activity Report was distributed to Dianna Goodsell, Administrative Services

Coordinator.

V. Presentations and Discussion Items

A. Budgetary Review of Proposed Spending Resolutions

Ben Franz-Knight noted that all the committees member besides Ann Magnano were in attendance at the

Asset Management meeting the night prior where the resolutions were reviewed, He briefly discussed

Proposed Resolutions 13-04: Additional Funds for Reconfiguration of Soames Dunn Interior and Retail

Spaces and Proposed Resolution 13-05: Approval of Contract Authority for Specialty Door Inc. and

Amendment to Resolution 12-44 - TI Reimbursement for Chocolate and Ice Cream. He noted that both of

the resolutions were approved unanimously at the Asset Management Committee.

B. Update on the NMTC LaSalle Commercial Exit Process


85 Pike Street, Room 500 Seattle, WA 98101 (206) 682-7453 www.pikeplacemarket.org

Ben Franz-Knight noted that Sabina Proto has done an excellent job throughout the process for the Exit

Process for the NMTC. Ben had Sabina Proto report on an update for the NMTC LaSalle Commercial Exit

Process and share the positive outcome from the process. She noted that the PPMPDA received $ 79,000

out of the process; there was a reserve set up several years ago before closing on the deal which was with

the Pike Place Investment Fund. She noted that we paid $106,000 and gained $79,000 equaling a net result

of $27,000 from the deal. She added there are two more entities that still need to be dissolved. The first

entity that needs to be dissolved is Pikes Place Investment Fund which the PDA is the sole owner of that

fund. The second entity is Pike Place Market funding LLC in which the PDA owns 39.74% and the Senior

Center owns 60.26%. She noted that based on the operating agreement between the PDA and Senior

Center, during the dissolution of the Pike Place Market Funding LLC, the PDA will pay the Senior Center

only one dollar for the return of its Capital Contribution.

Bruce Lorig inquired about the how the CAUT and COMA charges are calculated in commercial; he was

interested in reviewing calculation of CAUT and COMA rates in the near future.

VI. Other Reports and Action Items

None

VII. Items for Consent Agenda

None

VIII. Public Comment

None

IX. Concerns of Committee Members

None

X. Adjournment

The meeting was adjourned at 5:08 p.m. by Bruce Lorig, Vice-Chair

Meeting minutes submitted by:

Dianna Goodsell, Administrative Services Coordinator



PROPOSED RESOLUTION 13-13:

Allocation of 2012 Year End Balance

February 2013

WHEREAS, the PDA staff has carefully reviewed the 2012 year-end PDA un-audited operating

statements and finds that there is a year-end net-result operating balance after debt

service and reserves of $ 849,223; and,

WHEREAS, the full PDA Council in their annual budget process had budgeted a surplus of $707,091

to be contributed to PDA capital repair and replacement fund (CRRF), leaving an

unallocated balance from 2012 operations of $142,132; and,

WHEREAS, the PDA Finance Committee has considered PDA Council priorities and alternatives for

use of additional year end monies available, and annually recommends to the full Council

use of any such un-programmed operating balance.

THEREFORE BE IT RESOLVED that the PPMPDA Council allocates the remaining year-end operating

balance as follows:

$ 142,132 to the Capital Repair and Replacement Fund (CRRF)

______________________________________ _______________________________

Gloria Skouge, Secretary/Treasurer Date

Date Approved by Council:

Opposed:

Abstained:




Authorization for Contract Authority – Garage Replace Fire Panel

February 2013

WHEREAS, the Pike Place Market Preservation and Development Authority (PPMPDA) was

chartered by the City of Seattle pursuant to RCW 35.21.730 et. Seq with the mission of

promoting enterprises essential to the functioning of the Pike Place Market, including

the preservation and expansion of the low-income residential community, the

promotion and survival of small businesses , and the expansion of services to the public

market and community; and,

WHEREAS, in order to maintain the viability of the Pike Place Market buildings the PPMPDA has

determined the Garage fire panel is now obsolete, parts are not available, and the fire

panel malfunctions frequently requiring service.

WHEREAS, the PPMPDA has executed a competitive bid process to replace the fire panel, and all of

the detection and control functions.

BE IT RESOLVED that the PPMPDA Council authorizes the PPMPDA Executive Director or his designee

to enter into a contract with Simplex-Grinnell in an amount not to exceed

$25,125.87 for the execution of installing a new fire panel and associated devices.

The funds for this project will be drawn from the Capital Projects Budget,

Accounting Code 163732-00

______________________________________ _______________________________



For:

Opposed:

Abstained:


Asset Management Meeting, February 11, 2013

Proposed Resolution #13-09 Description

Proposed Resolution: Replace the garage fire panel, and all of the detection and control

functions.

Proposed Resolution Costs: $25,125.87

Current Budget: $40,000

Account: Capital Projects

Accounting Code: 163732-00

Project Description:

Replace the fire panel in the garage, and associated parts and devices.

Scope:

The purpose of this project is to replace the obsolete fire panel in the garage with a panel that

will meet current fire code, provide addressable functions AND can incorporate the new PC1

Garage.

Bid process:

Solicited three contractors and received two bids:

o Simplex-Grinnell $22,841.70 ($25,125.87 with 10% contingency).

o The Safety Team Inc. $23,724.27

o Fire One Walked project, but declined to bid

Garage Fire Panel




Authorization for Contract Authority – Refurbish Upper Economy Restrooms – Economy

Building

February 2013

WHEREAS, the Pike Place Market Preservation and Development Authority (PPMPDA) was

chartered by the City of Seattle pursuant to RCW 35.21.730 et. Seq with the mission of

promoting enterprises essential to the functioning of the Pike Place Market, including

the preservation and expansion of the low-income residential community, the

promotion and survival of small businesses , and the expansion of services to the public

market and community; and,

WHEREAS, in order to maintain the viability of the Pike Place Market buildings the PPMPDA has

determined that the restrooms located on the top floor of the Economy Building need

to refurbished for potential event space clients located in the Economy Building;

WHEREAS, the PPMPDA has executed a competitive bid process to renovate the restrooms;

BE IT RESOLVED that the PPMPDA Council authorizes the PPMPDA Executive Director or his designee

to enter into a contract with Experienced Construction, Inc. in an amount not to

exceed $22,295.30 for the execution of refurbishing the restrooms.

The funds for this project will be drawn from the Capital Projects Budget, Refurbish Upper Economy

Restrooms, Accounting Code 163729-00

______________________________________ _______________________________



For:

Opposed:

Abstained:


Asset Meeting, February 11, 2013

Proposed Resolution #13-10 Description

Proposed Resolution: Refurbish Upper Economy Restrooms

Proposed Resolution Costs: $22,295.30

Account: Capital Projects

Accounting Code: 163729-00

Project Description:

The upper Economy restrooms will be updated to resemble the public restrooms, located

throughout the Pike Place Market.

Scope:

The purpose of this project is to refurbish the outdated and unsightly restrooms to make the

area more appealing to potential meeting place clients. The intent of the remodel is to mimic

the existing public restrooms with hexagonal floor tile and subway wall tile with a black

chair rail.

Bid process:

Five (5) contractors were solicited for this project and we received three (3) proposals.

o Experienced Construction $18,510 ($22,295.30 w/ Tax and Contingency)

o SSI $28,612.15

o Sargent Construction Services $45,128

o Sheldrup Building Services – NO BID

o Express Construction – NO BID


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