Fort Worden PDA Finance & Audit Committee June 18, 2020 Reopening Budget Scenarios & Cash Flow Considerations
Budget Scenarios Overview: Cash Position Cash Position by Month 300,000 250,000 200,000 150,000 100,000 50,000 0 July Aug Sept Oct Nov Dec Jan Feb Mar -50,000 -100,000 -150,000 Reopen August 2020 Reopen April 2021
Reservations on the Books Leisure Month Group Standard Leisure NR Third Party Total Leisure Total Aug $3,730 $106,856 $124,306 $923 $232,085 $235,815 Sept $21,236 $32,347 $87,327 $112 $119,786 $141,022 Oct $12,172 $7,773 $32,167 $408 $90,348 $102,520 Nov $27,218 $7,222 $19,034 $0 $46,256 $73,474 Dec $17,840 $7,101 $6,325 $0 $28,426 $46,266 2020 $82,196 $161,299 $269,159 $1,443 $516,901 $599,097 Jan $2,998 $1,749 $5,848 $0 $7,597 $10,595 Feb $99,786 $0 $0 $0 $0 $99,786 Mar $9,000 $598 $6,408 $0 $7,006 $16,006 Q1 2021 $111,784 $2,347 $12,256 $0 $14,603 $126,387
Budget Scenario 1: Fort Worden Services Open Aug 2020 General Assumptions • Phase 3 reopening for Jeffco likely to occur in late June/early July; campgrounds reopen • Recovery Plan and FEMA funds provide financial support for PPE expenses for reopening • Makers Square construction stays on schedule • LCP grant reimbursements occur in late July; provides cash flow for reopening
Budget Scenario 1 Opens August 2020: Advantages & Risks Advantages • Strong accommodation revenues forecasted for August through Nov (net $309,000) • Opening Taps and Canteen restaurants will be a value-add for community members, people staying overnight at Fort Worden, which will most likely result in sustainable operation during the time the restaurants are open. • Brings back and retains staff at least until the end of November or December. • Builds community support and public confidence that PDA will survive crisis • Enables the PDA’s ability to provide more service support to Partner businesses (minimally, F&B, security, maintenance)
Budget Scenario 1 Opens August 2020: Advantages & Risks Risks • A COVID spike could result in cancelled reservations • Inability to accommodate groups that are 50 persons or less and adhering to the Governor’s group gatherings restriction may result in reputational risks and future lost opportunities. • Inability to accommodate groups that are 50 persons or more will result in additional cancellations for the larger groups. • Opening Taps will yield low revenue margins.
Budget Scenario 1 Opens August 2020: Advantages & Risks Risks • A COVID case at the Fort could shut down affected/contaminated unit(s) for 3 weeks • Restaurant requirements for contract tracing can result in the PDA’s limited ability to adequately trace a a person that is carrying the virus. • Costs to operate under COVID may be greater than anticipated • Potential for emergency or compliance repair is a risk given the nature of the buildings and may affect financial sustainability for a limited reopening. (e.g., HVAC, Fire Alarms)
Budget Scenario 1: Fort Worden Services Open Aug 2020 2020 Revenues Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Accommodations 266,387 0 430,050 395,000 1,091,437 Catering: Food & Alcohol Sales 105,953 0 0 0 105,953 Restaurant: Canteen 0 0 62,000 0 62,000 Restaurant: Taps 75,117 0 63,000 21,000 159,117 Restaurant: Reveille 65,492 0 0 0 65,492 Total Food & Alcohol Sales 246,562 0 125,000 21,000 392,562 Leases 29,400 29,400 29,400 29,400 117,600 Other Revenue 70,768 33,000 16,302 16,950 137,020 PPE Reimbursement Grant 0 0 107,639 107,639 Grants/Donations 27,000 90,400 9,840 127,240 Total Revenues 640,117 152,800 718,231 462,350 1,973,498
Budget Scenario 1: Fort Worden Services Open Aug 2020 2020 Expenses Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Cost of Goods 86,813 0 39,390 6,930 133,133 Personnel Salaries & Wages 0 Pre Covid Staffing 665,866 665,866 Post Covid Skeleton Crew 135,486 79,650 79,650 294,786 Post Covid Reopening Crew 140,050 113,850 253,900 Total Personnel 665,866 135,486 219,700 193,500 1,214,552 Benefits & Payroll Costs 155,721 129,852 43,460 37,059 366,092 Repairs & Maintenance 10,950 0 21,000 20,500 52,450 Utilities 131,225 57,000 54,000 54,000 296,225 Contracts 54,690 46,500 46,500 46,500.00 194,190 General Operating Expenses 126,451 23,262 44,100 47,250 241,063 PPE/Sanitization Supplies 4,549 900 105,530 7,090 118,069 Total Expense 1,236,265 393,000 573,680 412,829 2,615,774 Net Revenues -596,148 -240,200 144,551 49,521 -642,276
Budget Scenario 1: Fort Worden Services Open Aug 2020 Lodging/Accommodations July 2020 –March 2021 Assumptions There is potential for increased leisure travelers due to pent-up demand from I-5 corridor. Fort Worden’s lodging facilities, location and space for outdoor activities makes it a very desirable spot to come and stay. There will be increased demand in reservations once Fort Worden starts taking reservations again. January-March 2021 is very difficult to predict, so this budget presents estimated low bookings. The Cottage Collection, NCO Row, Officers Row, Bricks and the Lofts will be reserved at no more than 50%. Dorms will be off line. Given the ADR is over $500 for Aug and that the occupancy for all collections presented in this budget is only 20% for August, the room for increased sales is strong.
Budget Scenario 1: Fort Worden Services Open Aug 2020 Lodging/Accommodations July – December 2020 Assumptions Overall operating costs are planned to be lower than if the Commons and Front Desk were open and despite increased cleaning requirements. Examples of a few are: • Leisure travelers will check in on the porch of the Sales office in house 15. Cleaning a unit will wait one day before housekeeping enters, providing a wait period that • reduces extra-ordinary efforts for cleaning. The PDA is also purchasing ultra-violet ray cleaning equipment that will reduce the labor time and provide better sanitization. • Dishes and other kitchenware will be reduced to a minimum. At check-out all kitchen the wares will be removed and sterilized through our commercial dishwashers. The dishwasher labor cost is included in the restaurant budget.
Budget Scenario 1: Fort Worden Services Open Aug 2020 Lodging/Accommodations 2020 Revenues Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Accommodations 266,387 0 430,050 395,000 1,091,437 Other Revenue 12,119 0 16,302 16,950 45,371 Total Revenues 278,506 0 446,352 411,950 1,136,808 Expenses Personnel Salaries & Wages Pre Covid Staffing 123,211 123,211 Post Covid Skeleton Crew 37,486 28,980 28,980 95,446 Post Covid Reopening Crew 47,320 67,020 114,340 Total Personnel 123,211 37,486 76,300 96,000 332,997 Benefits & Payroll Costs 33,381 17,286 22,434 22,434 95,535 Repairs & Maintenance 0 0 10,000 12,500 22,500 Utilities 131,225 57,000 54,000 54,000 296,225 Contracts 0 0 0 0 - General Operating Expenses 22,600 5,800 19,600 24,000 72,000 PPE/Sanitization Supplies 0 0 0 0 - Total Expense 310,417 117,572 182,334 208,934 819,257 Net Revenues -31,911 -117,572 264,018 203,016 317,551
Budget Scenario 1: Fort Worden Services Open Aug 2020 Restaurants July 2020 – December 2020 Assumptions Taps There will be a limited menu Open hours will be determined by sales and activity. Initially, it is budgeted to be open Thurs through Monday from 12 to 9. Outdoor seating only until there is indication that there is a high likelihood there will not be a Covid-19 outbreak. There will be two main sections each served by a server and one bus person during busy periods. During slow periods the server will manage serving and busing. There will be one bartender working a shift. Kitchen will need one prep and one main chef. The patio will be reconfigured to have a total of 13 tables and able to seat a total of 42 people. (Patio Layout on next slide.)
Budget Scenario 1: Fort Worden Services Open Aug 2020 Restaurants July 2020 – December 2020 Assumptions Canteen The menu will be the same as last year. It will only open if camping is open. Open 7 days a week from 12 to 6. There will not be any indoor service or seating. There is a remodel cost to moving the POS and services to a spot that accommodates orders that take place outside the building. There will not be any retail sales. There will be one cashier/runner, a main cook and a prep cook Monday-Thurs. Friday- Sunday there is a second part-time runner that assists in standard peak hours.
Budget Scenario 1: Fort Worden Services Open Aug 2020 Restaurants July 2020 – December 2020 TAPS Jul 20 Aug 20 Sept 20 Oct 20 Nov 20 Dec 20 Total Revenues Food Sales 0 Alcohol Sales (50% of 2019 Sales) 16,000 12,000 9,000 37,000 Food Sales (50% of 2019 Sales) 20,000 15,000 12,000 47,000 Total Revenues 0 36,000 27,000 21,000 0 0 84,000 Expenses Cost of Goods (33%) 11,880 8,910 6,930 27,720 Personnel Salaries & Wages (50% of Revenues) Reopening Crew 1,600 17,100 13,500 10,500 42,700 Benefits & Payroll Costs 240 2,565 2,025 1,575 6,405 Repairs & Maintenance 500 500 500 500 2,000 Utilities 0.00 Contracts 0.00 General Operating Expenses 250 750 750 750 2,500.00 Total Expense 2,590 32,795 25,685 20,255 0 0 81,325 Net Revenues -2,590 3,205 1,315 745 0 0 2,675
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