Port of Seattle. Perspectives on Utilities
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1
2 Port of Seattle Perspectives on Utilities
3 Agenda Challenges in Utility Billing/Cost Recovery Scenarios Billing Methods/PROPworks Lessons Learned AirIT on 7.4 Utilities Module
4 Utility Revenue Billed (Seaport/Real Estate 2012) 4 $4,784,765 Water Sewer Electric Surface water management Natural gas Fire alarm monitoring 3.7% of total operating revenue
5 Determining Tenant s Fair Share 5 New Rental Car Facility opened May 2012
6 Determining Tenant s Fair Share 6 36,000 sf Warehouse, Terminal 91
7 Sharing Water, Sewer and Electric 7
8 Cruise Terminals 933,900 Passengers in Cost Recovery at Pier 66
9 Water/Sewer Meter Shared with Bell Harbor Intl Conference Center 9
10 10 Terminal 91 Cruise Terminal Water/sewer is metered
11 Solution: Calculate CCF per passenger at Terminal 91, apply to Pier 66 passenger count 11
12 Solution: Excel spreadsheet set up, enter both passenger counts, Terminal 91 CCF 12 Upload with other shared bills
13 13 Solution: Invoice
14 Secure or Difficult Access Locations
15 Meter in Difficult Location 15
16 16 Meter in Difficult Location Running refrigerated containers
17 Meter in Difficult Location 17
18 18 Meter in Difficult Location 3 FEET
19 Meter in Difficult Location 19
20 20 Meter in Difficult Location Water meter Pier 46
21 21 Scenario Adjacent Service Large tenant currently has utility in own name. A potential tenant for a smaller adjacent space without direct service inquires about utility access. Possible solutions: 1. Deny request lose potential new tenant. 2. Pay utility supplier to install new service and bill new tenant directly for use cost prohibitive. 3. Connect to existing tenant s service through submeter. Read meter, bill new tenant and reimburse existing tenant.
22 Scenario Adjacent Service 22
23 Large public park, adjacent to terminal. No utilities available. 23
24 24 Battery Operated Electric Meters Cruise Terminal Shore Power Meters
25 Battery Operated Electric Meters 25
26 26 Parent/Sub Meter Non-Return Sewer Deduct Meters Ship s water Water into product Cooling towers Ice machines City-Required AMR Meters
27 PROPworks Billing Method 27
28 28 Alternative No Non Return Meter Check, No Parent Meter
29 29 Credit Bill Rule for deduction of sewer billed on master meter. Results in invoice line item for credit.
30 30 Seasonal Rates Summer/winter, 3 Bill Rules per year for water
31 Some meters are difficult to read accurately. 31 Sea-Tac Airport Electric Meters
32 32 Read this meter. What do you get?
33 32 Read this meter. What do you get? 11096
34 Seatac Airport Electric 34 Commission voted to declare an industrial development district. Allowed airport to purchase directly from BPA in 2003, saving millions annually.
35 Utility Billing Challenges BILLING METHODS
36 7 Ways to Bill Utilities in PROPworks Tenant pays city/provider directly. Advantage: no expense to process Disadvantage: no historical consumption data
37 7 Ways to Bill Utilities in PROPworks Included in rent not itemized on bill. Disadvantage: estimated, not actual; may not reflect changes in utility use, cannot be changed when provider utility rates are increased.
38 7 Ways to Bill Utilities in PROPworks Included in CAM charges. Disadvantage: requires annual, complex calculations based on actual costs to determine share.
39 7 Ways to Bill Utilities in PROPworks Flat amount billed per month with rent as separate line item. Bill Rule for combining ALL utilities together:
40 7 Ways to Bill Utilities in PROPworks Flat amount billed per month with rent as separate line item. Bill Rule for garbage:
41 7 Ways to Bill Utilities in PROPworks Flat amount billed per month with rent as separate line item. Advantage: easy to set up Disadvantage: estimated rather than actual Be sure to have a provision for when provider rates increase!
42 7 Ways to Bill Utilities in PROPworks Amount charged per square foot per year, billed monthly with rent as separate line item.
43 7 Ways to Bill Utilities in PROPworks Amount charged per square foot per year, billed monthly with rent as separate line item. Process to determine initial charge per sf, works best for same use by multiple tenants (office space, warehouse) Review for annual increases based on provider rates
44 7 Ways to Bill Utilities in PROPworks Submeter used, billed on actual consumption from readings monthly. Agreement with 44 meter leaseholds:
45 7 Ways to Bill Utilities in PROPworks Submeter used, billed on actual consumption from readings monthly. (Real Estate/Seaport) Utility Type 1
46 7 Ways to Bill Utilities in PROPworks Submeter used, billed on actual consumption from readings monthly. Bill Rule for sewer on water/sewer meter:
47 7 Ways to Bill Utilities in PROPworks Submeter used, billed on actual consumption from readings monthly. Advantages: good cost recovery, fair to tenants, good historical consumption data Disadvantages: installation cost, meter reading costs, maintenance costs, access
48 7 Ways to Bill Utilities in PROPworks Pay the city/provider utility bill, divide among tenants based on their share of building.
49 Collect Provider Bills
50 50 Excel File Add bill totals to location on spreadsheet:
51 Data for Each Agreement 51 on Upload Tab
52 52 Save as CSV One-Time Activity Upload File:
53 53 File Loading Set up arguments, format mask:
54 Log Report 54
55 7 Ways to Bill Utilities in PROPworks Pay the city/provider utility bill, divide among tenants based on their share of building. Advantages: good cost recovery, fair, flexible Disadvantages: time consuming process
56 Tenants with Many Utilities Various combinations of the seven ways to bill.
57 47 Leaseholds, 44 are Utilities 57
58 1 Agreement, 2 Locations, 45 Utility Bill Rules 58 45
59 Utility Billing Challenges LESSONS LEARNED
60 Service/Administrative Charges percentage or dollar amount 2010 Study $40 to produce an invoice Exception Reporting Assign meter percentage, correct report types Utility Lease Language Maintenance responsibility, billing methods Seasonal rate changes mid-month Remote dials for hard-to-reach meters Document changes to space
61 Port of Seattle Perspectives on Utilities
62 Perspectives on Utilities
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