AGC OF WASHINGTON BOARD OF TRUSTEES MEETING April 20, …

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AGC OF WASHINGTON BOARD OF TRUSTEES MEETING April 20, 2015, 11:00 AM – 1:30 PM

AGC Conference Center, 2nd floor, Seattle, Washington

PURPOSE OF MEETING: To conduct the business affairs and establish policies of the association. DESIRED OUTCOMES:

Knowledge of key association activities. Understanding 2014 financial audit. Consensus on action items.

AGENDA CALL TO ORDER – President Gary Smith TAB

CONSENT AGENDA (5 min.)

1. Approval of February summary minutes 1 2. Approval of March and April Membership reports 2

WRITTEN REPORTS (5 min.) 1. District Reports: Central, Northern, Seattle, Southern 3 2. Department Report: Communications, Property 4

ORAL REPORTS 1. FLF Chair Bryan Kelley, Oles Morrison Rinker & Baker LLP (5 min.) 2. President Gary Smith (5 min.)

a. AGCA National Convention recap b. June 5 Board Retreat, 8:30 AM – 3 PM (TBD), AGC Conference Center

3. Executive Vice President David D’Hondt (5 min.) a. AGC of America update b. Questions / comments for staff / officers?

4. AGC Education Foundation – Executive Director Diane Kocer (15 min.)

INTERACTIVE DISCUSSION/ACTION 1. Approval of February Financial Statements – Kelly Barber (10 min.) 5 2. Results of 2014 AGC Audit Report – Kelly Barber (10 min.) 6

(12 Noon – lunch) (20 min.)

3. Update on Legal Affairs Committee’s recommendation on12/8/14 (5 min.) request by John Ahlers, Ahlers & Cressman for AGCWA to contribute $20k if a lawsuit develops re: Disadvantaged Business Enterprise (DBE) “goal and eligibility” changes – Gary Smith

4. GAC legislative update – Jerry VanderWood (5 min.) 5. Strategic Plan – Gary Smith, Dave D’Hondt (10 min.)

OTHER BUSINESS

1. Announcements: (5 min.) Apr. 21 Seattle District Membership Mtg., 7:30 AM, Harborside May 6 Southern District Membership Mtg., 5 PM, Tacoma Elks Club May 14 Build WA Awards Dinner, Museum of Flight May 18 Seattle District Golf Tournament, Bear Creek Country Club June 5 Board of Trustees Retreat, 8:30 – 3:00 PM, AGC Conference Center

2. Building Discussion, Tour and Questions – Chuck Quick, Paula Jackson, Dick Bristow (45 min.)

1:30 PM – ADJOURN

SUMMARY MINUTES AGC OF WASHINGTON BOARD OF TRUSTEES MEETING FEBRUARY 16, 2015

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BOARD MEMBERS PRESENT Gary Smith Lease Crutcher Lewis WA, LLC Delton Bonds Mountain States Const.Co Ken Day Ness & Campbell Crane, Inc. Mike Grace Groff Murphy, PLLC Jake Jacobson Osborne Construction Company Todd Kunzman Andgar Corporation Annie Lombroia Ashbaugh Beal Paul Mayo Flatiron Constructors, Inc. Nancy Munro MidMountain Contractors, Inc. Jim Rowley Howard S. Wright,a Balfour Beatty Co. J. Schaufelberger UW College of Built Environments Mark Seaman J.R. Abbott Construction Inc. Glyn Slattery Lydig Construction, Inc. Gordon Spencer Teknon Corporation Mickey Traugutt Washington Patriot Construction LLC Sharon Young Concord Construction, Inc. BOARD MEMBERS ABSENT Brent Levander Centennial Contractors Enterprises

Joe Simmons Joseph S. Simmons Construction, Inc. STAFF/GUESTS PRESENT David D’Hondt AGC of Washington Tim Attebery AGC of Washington Kelly Barber AGC of Washington Richard Bristow AGC of Washington Jerry Dinndorf AGC of Washington Liz Evans AGC of Washington Lauren Gubbe AGC Group Retro Randy Guzman AGC of Washington Dave Kearby AGC of Washington Mandi Kime AGC of Washington Andrew Ledbetter AGC of Washington Sean Lewis AGC of Washington Stacy Mullane AGC of Washington Dani Tijan AGC of Washington Jerry VanderWood AGC of Washington Robert Marconi Ashbaugh Beal

CALL TO ORDER First Vice President Gary Smith welcomed everyone and called the meeting to order at 11 AM. BOARD ORIENTATION Bob Marconi with Ashbaugh Beal oriented the Board on its statutory and fiduciary responsibilities as trustees of the association. He reviewed AGC’s Responsibilities of the Board of Trustees’ Pledge, Conflict of Interest and Attendance policies, and Code of Ethical Conduct. He asked all trustees to return signed copies of the first two documents to Dani Tijan. Marconi encouraged the trustees to get to know the officers and staff and to look for opportunities to get involved in committees. He also encouraged trustees to attend meetings, become familiar with governing documents (Bylaws, Policies of the Board), be punctual, come prepared, ask questions, stay informed, debate issues, and “serve in good faith, in a manner such trustee believes to be in the best interest of the corporation, and with such care, including reasonable inquiry, as an ordinarily prudent person in like position would use under similar circumstances,” -- pursuant to RCW.24.03.127 (Duties of a Director of a Nonprofit Corporation). It should be noted that, per Chapter Bylaws (Article 9), Board members (fiduciaries) are indemnified to the fullest extent permitted by law against any expenses incurred in connection with the defense of any action, suit or proceeding.

Board of Trustees & Staff Self-Introductions – Board members and staff introduced themselves. CONSENT AGENDA Action: It was moved (Mayo), seconded, and carried to accept the December summary minutes with one slight modification on page 4: AGC’s BUILD PAC chair remains Brett Ferullo rather than Jake Jacobson. It was moved (Bond), seconded (Day), and carried to accept the February Membership report as presented.

Re: February 16 Membership Report

The following candidates have been screened and meet the proper classification requirements:

ASSOCIATE Seattle District 1 Alliance Geomatics, LLC, Bellevue, WA Columbia Bank, Seattle, WA The Hartford, Seattle, WA Peterson Sullivan LLP, Seattle, WA Textura Corporation, Deerfield, IL


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United Site Services, Seattle, WA

GENERAL CONTRACTOR Central District Kitt Construction & Development, LLC, Yakima, WA Northcomm LLC dba RFS Construction, East Wenatchee, WA HONORARY MEMBERSHIP Steve Barger – nominated by Tom Rogers, Northwest Cascade Wade Perrow – nominated by Mickey Traugutt, Washington Patriot Construction

INTRODUCTORY SUBCONTRACTOR Southern District Ascendent LLC, Pacific, WA Energy Electric LLC, Ridgefield, WA Tradesmen Electric, Yacolt, WA INTRODUCTORY RETRO GENERAL CONTRACTOR Seattle District Alegis Enterprises, Seattle, WA

RETIRED MEMBERSHIP Butch Brooks SUBCONTRACTOR Seattle District Sterling Electrical Contractors, Lynnwood, WA

NAME CHANGE McGraw-Hill Construction is now Dodge Data & Analytics NOT RENEWING MEMBERSHIP Associates Emdeon – Seattle – No longer requiring conference room rental Fulcrum Crane International, LLC – Seattle – Unsuccessful marketing of company Jonasson Consultants LLC – Seattle – Retired SolicitBid – Seattle – Owned by DJC who is also a member, not renewing for this firm Steller, Inc. dba The Lean Companies – Seattle – Business being auctioned URS Corporation – Seattle – Company has merged with another member company, AECOM Verizon Networkfleet – Seattle – Only joined to be able to advertise on website. Did not intend to renew. Northwest Steel & Pipe Inc. – Southern – Not renewing in health plan - changed carriers Sadlier Enterprises, Inc. dba Johnstone Supply – Southern – Not renewing in health plan - premiums too high

General Contractors Green Canopy Homes, LLC – Seattle – Not renewing in health plan - premiums too high LZL Construction, Inc. – Seattle – Not renewing in health plan - premiums too high Mayer Construction – Seattle –Business closed Brooks Construction Management – Southern – Retired Burnham Construction, LLC – Southern – Business closed Wade Perrow Construction – Southern – Business closed

Subcontractors LA Interiors NW – Seattle – Business closed

ORAL REPORTS President’s Report – President Smith stated that he looked forward to working with the Board and staff this year and hoped to keep meetings engaging and interactive. He encouraged comments and questions and


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hoped to make the Board meetings productive. Smith reported that the Board will be updating AGC’s 5-year Strategic Plan this year.

Western Chapters’ Mtg. - First Vice President Nancy Munro reported on the recently attended Western Chapters’ Meeting, which was held in Scottsdale, Arizona. Issues discussed included:

Chapter reports from each attending chapter. Workforce development – lack of sufficient skilled craft workers appears to be an issue across-the-

board. Start-up schools – will pass along to the AGC Education Foundation information on what some of

the other chapters are doing. Infrastructure – where are monies coming from for transportation? DOT partnerships. Commercial building has picked up, but heavy civil has not. Panel discussion on how to keep AGC relevant to the younger generations, who tend to be less

patient and are interested in “why” we’re doing it, rather than “how”; metric-based rather than hours-based.

Board comment (Day): “Washington State appears to be enamored with mega projects, which starves out the middle class contractors; what are other states doing?” Response (D’Hondt): “Every chapter has its mega projects; for many of the chapters it tends to be a demographics’ issue.”

President Smith noted that with the renewed partnering agreement between AGC of Washington and the AGC Education Foundation, there will be concerted effort to improve workforce development.

AGC of America Staff Years of Service Recognition - Michele Willms (in absentia) was recognized for her 20 years’ service to the association and AGC of America (AGCA). Executive Vice President’s Report – Executive Vice President David D’Hondt welcomed the Board and reported on the following:

Goal is transparency in running the association; any questions / comments, please ask Dave or staff.

After reviewing and signing, please return the following two documents to Dani: Responsibilities of the Board Pledge, and Conflict of Interest.

Complimentary parking validation tickets will be available at each Board meeting. AGC of America is a great resource; part of each company’s membership dues goes to AGCA.

They represent all construction issues in Washington, DC. He reviewed their top policy positions for Congress this year; they also maintain a townhouse near the capitol. They offer the STP classes, and all “e” books.

The Pension Protection Act, which added special funding rules for significantly underfunded multi-employer pension plans, would have expired at the end of last year; however, AGCA got an extension. AGCA is recommending it be enhanced in three main areas: changes/technical corrections to the PPA; provisions for deeply troubled plans; and, proposals to advance new and innovative plan designs.

Strongly encouraged comments / questions for staff and/or officers at all Board meetings.

Board member Annie Lombroia congratulated Liz Evans on a great job coordinating this year’s Annual Meeting. Department Presentations – The following AGC departments gave brief presentations / orientations on the functions and activities of their respective committees: Communications; FLF; Labor; Federal Facilities; Government Affairs; Legal Affairs; Public Works; Group Retro; Properties; Safety; and, State Facilities.


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INTERACTIVE DISCUSSION/ACTION Controller’s Financial Report – Controller Kelly Barber reviewed the financials for the month ended December 31, 2014. He noted that 2014 was an unusually good year. As of December 31, 2014, the Net Operating Income (NOI) equaled $667k vs. a year-to-date budget NOI of $15k creating a favorable year-to-date budget variance of $652k. The year-to-date revenue variance of $561k combined with the positive expense variance of $91k produced the total favorable year-to-date budget variance of $652k. The year-to-date positive revenue variance of $561k was primarily from above budget revenue in Retro Sponsorship, Membership Dues and all other revenue categories except Building Revenue and Misc. Income. The year-to-date positive expense variance of $91k was primarily comprised of under budget expenses in most expense categories except Insurance / Tax, Building / Marina and Depreciation expense. The building’s occupancy rate was 93% as of December 31, 2014. D’Hondt reported that due to the $652k positive budget variance, the AGC was able to pay the balance of $30k to WSU (total commitment was $50k over a 5-yr. period); place $200k into the building’s savings account for unforeseen emergencies (total of $400k in the building’s savings account now); and, proposed AGC pay off its loan on the building in the amount of $430k. Barber stated that early loan pay off will result in a savings of approximately $40k in interest. Trustee Gordon Spencer questioned what was the net budget variance the previous year? Barber stated that he would get back to him with that answer. D’Hondt noted that the bulk of the 2014 positive variance was from the Retro refund. He also reminded the trustees that AGC of Washington is a 501(c)6, non-profit, which operates differently from a for-profit company. He also noted that AGC can invest monies and has some available in reserves, which the Board will review in depth at the June Retreat.

Action: It was moved (Day), seconded (Kunzman), and carried to approve the December Financial Report as presented. Strategic Plan – D’Hondt reviewed the current Strategic Plan and noted that the Officers will be evaluating possible facilitators for the June Retreat and the process of updating AGC’s five-year Strategic Plan. Per D’Hondt and Smith, it is time to determine whether the current BHAG’s are still relevant or if they need to be replaced. Smith noted that the AGC Property previously had its own BHAG; when it was determined that all of the goals were set into ongoing practice, it was eliminated. It was also noted that a set of “guiding principles” were established for inquiries into the sale of the AGC building and its properties. (To review the guiding principles, please go to the last page of your Board Policies; you will find them listed there.) The current Strategic Plan BHAG’s are: AGC OF WASHINGTON STRATEGIC PLAN, BHAG 1 BHAG 1: Increase membership of General Contractors to 220 members by 2020; double associate membership. Membership numbers as of July 31st, 2014: GC (181) SUB (177) ASSOC (219) Membership numbers as of December 31st 2014 GC (188) SUB (176) ASSOC (237) Timeframe


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(Champions: David D’Hondt, Dick Bristow, Stacy Mullane)

2013 2014 2015 2016 2017 SMART GOAL 1: Increase membership recruitment & retention Objective I: Use McGraw Hill Analytics to establish market share for each district and target new members. Oct April Timeframe: 3 mos. April 2014 Responsible: Director of Membership, District Managers (Membership Coordinator) Objective II: Adjust District Managers’ boundaries for recruiting. Timeframe: 3 mos. April 2014 Responsible: David D’Hondt, Dick Bristow

Oct

July

SMART GOAL 2: Increase membership services Objective I: Enhance industry knowledge of Safety Team© (ST) as premier and utilize the success of that program to open contracting opportunities for members. Timeframe: 10 mos. Update (5/11): Printed marketing materials (bifold and trifold) have been developed. An ad has been placed in the 2011 membership directory informing members of the benefits of Safety Team and resources available. Update (3/12): Action steps developed to meet objective: work with GC’s to use ST as prequalification criteria, create better awareness within membership/staff on the benefits of ST, survey the membership ST contractors and non-ST contractors, create banners that have space for GC to list all ST certified contractors onsite, publicize our internal statistical graphs and comparison charts to show exemplary results that ST contractors have achieved, approach the following companies: major insurance agencies requesting endorsement for ST contractors, L&I to request premium discount, and large owners (Vulcan, etc.) about using ST criteria in the pre-qualification process. Responsible: David D’Hondt / Mandi Kime / Safety Comm.

Dec

SMART GOAL 3: Create overarching marketing plan for membership recruitment

Objective I: Hire Marketing Manager Timeframe: Sept 2013 Sept Responsible: David D’Hondt Objective II: Create a plan that includes staff incentives for membership growth and member-to-member recruitment. Timeframe: Jan. 2014

Jan


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Responsible: Sean Lewis, David D’Hondt, Tim Attebery

Aug

Sept

SMART GOAL 4: Collaborate with the Education Foundation at a higher level

Objective I: Hold one or two joint executive meetings per year Timeframe: Oct 2013 Responsible: David D’Hondt Objective II: Create joint budgeting meeting for both organizations. Timeframe: 2014 Budget cycles Responsible: David D’Hondt Objective III: Education Foundation to make presentation to the AGC Board of Trustees on class offerings. Timeframe: Dec 2013 Responsible: David D’Hondt

Oct Dec.

May

June

Gray highlight indicates updated information. Yellow highlight indicates past updated information. Blue highlight indicates objective completed. 4/8/2015 8:03:57 AM

AGC OF WASHINGTON STRATEGIC PLAN, BHAG 2

BHAG 2: To help elect a pro-business majority in the WA State Legislature by 2020.

Timeframe

Champions: David D'Hondt, Jake Jacobson 2013 2014 2015 2016 2017SMART GOAL 1: Increase member participation

Objective I: Increase member and legislative personal contact through L.E.A.R.N. Program to establish long-term relationships. (Target 10 additional visits with legislators per year.) Timeframe: 5 yrs. (Begin 2014) Ongoing activity with December updates. Responsible: Van Collins/ Jerry Vanderwood & District Managers Infrastructure is in place with the District Managers to start after session this year. There have been 2 visits so far this year. Objective II: Increase Voter Voice contacts in both quantity and quality through member visits.

Dec Sept.

Dec Dec

Dec

Dec


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Timeframe: 1 yr. Responsible: Michele Willms / District Managers Objective III: Present Legislator of the Year Award at a Board meeting. Timeframe: 2013 Responsible: Van Collins Senator Ann Rivers received at Annual Meeting

Dec

Jan.

Jan.

Gray highlight indicates updated information. Yellow highlight indicates previously updated information. Blue highlight indicates objective completed. 1/29/2014

AGC OF WASHINGTON STRATEGIC PLAN, BHAG 3

BHAG 3: Create an industry leading IT program for members and staff that utilizes leading technologies and eases interface.

Timeframe

Champions: Mark Seaman, Kelly Barber 2013 2014 2015 2016 2017SMART GOAL 1: Define the options Objective I: Research and recommend state-of-the-art database / website / mobile options. Timeframe: December 2013 Responsible: Kelly Barber / David D’Hondt Objective II: Research and recommend webinar platform for AGC use. Timeframe: June 2014 Responsible: Kelly Barber / David D’Hondt SMART GOAL 2: Purchase and install new database Objective I: RFP for systems Timeframe: March 2014 Responsible: Kelly Barber/ David D’Hondt Objective II: Installation of new database Timeframe: August 2014 Responsible: Kelly Barber/ David D’Hondt

Dec

Oct. Mar Nov.

July July

Gray highlight indicates updated information. Yellow highlight indicates previously updated information. Blue highlight indicates objective completed. 1/29/2014


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AGC’s BUILD PAC – Chief Lobbyist Jerry VanderWood explained the purpose of AGC’s BUILD PAC, chaired by Brett Ferullo: to provide financial support to campaigns of state and local government (construction friendly) candidates who will work to improve the business climate in Washington State. AGC’s BUILD PAC relies on the contributions of individuals and firms. VanderWood reported that contributions come from a number of sources: membership dues check off, the Annual Convention’s Dessert Dash, and golf tournaments held at the Seattle, Southern, and Central districts; 2014 total contributions equaled $95k. He encouraged members to contribute this year.

Seaplane Museum Update – President Smith gave an updated report on the proposed Seaplane Museum project. Per Smith, project proponents are seeking funding at this time; AGCWA has made no commitment yet, and are waiting to determine if the project is viable. Smith advised that the Board would be apprised before any commitment is made. AGC’s commitment could potentially be a ground lease for a parking garage for the Museum as well as additional parking for AGCWA (pending City’s approval). OTHER BUSINESS New Market Skills Center – D’Hondt recommended AGC of Washington contribute $1k from the Board Contingency Fund to New Market Skills Center (Tumwater) toward their upcoming Try-A-Trade Annual Construction Career Fair, which will be held May 7. D’Hondt explained the career fair is for students within the Pac-Mountain region who want to explore careers in the construction industry. It was noted that the skills center is a consortium of 25 high schools in 10 districts providing career and technical education to high school students interested in employment after high school and/or preparation for entering college or apprenticeship. Trustee Mickey Traugutt stated that the New Market Skills Center is well known and respected in the south end. Action: It was moved (Slattery), seconded (Day), and carried to contribute $1k from the Board Contingency Fund to the New Market Skills Center for the May 7 Try-A-Trade Career Fair. Announcements – Feb. 17 Seattle District Membership Breakfast, 7:30 AM March 4 Southern District Membership Dinner, 5 PM, Tacoma Elks Club March 17 Seattle District Membership Breakfast, 7:30 AM March 18 Lobby Day, 10 AM – 2:30 PM, Olympia April 1 Southern District Membership Dinner, 5 PM, Tacoma Elks Club April 20 Board of Trustees Mtg., 11 AM – 1:30 PM, AGC Conference Center The meeting was adjourned at 1:55 PM ________________________________________________________________________________ Mark Seaman, Secretary/Treasurer Date

TO: AGC Board of Trustees FROM: David Kearby, Central District Manager SUBJECT: CENTRAL DISTRICT REPORT DATE: April 20, 2015 Membership: As of the latest renewal report, we have three members still outstanding. One GC has closed their doors, and one GC and one Associate have not sent their dues as of yet. For new members we have added two GC’s both primarily joining due to Safety Team. One SC (Subcontractor) membership application is awaiting approval. Future prospecting over the next two months will focus on Retro, Health Plan and Safety Team services as we look to make a marketing push before the June retro deadline. We will continue to utilize current member suggestions and testimonials along with a postcard piece and follow-up calls and conversations. Open Shop: In late February and early March we held three regional meetings regarding the NLRB’s “quickie election” rule and what contractors can do to prepare for the April rule enactment. Meetings were held in Yakima, Tacoma and Bellingham with good turnout in each district as well as good roundtable discussion. Follow-up from these meetings will be a future Supervisor Training session, and we are working with the instructor to either do regional or webinar training. Other Meetings: February’s quarterly Safety Forum was our best attended forum in the last five years, and we may need to look at a larger location for our next Yakima meeting. In March we held a joint meeting to talk with Yakima Planning Manager and Code Enforcement Officer on the state of planning in Yakima. We also held a Build-Your-Network lunch with L&I’s Prevailing Wage Program Manager. This was a well-attended lunch with spirited conversation and interaction. We’ll be rescheduling this lunch for Wenatchee. LEARN: We are working with Rep. Newhouse to schedule a sit-down with him in late May, when he is in the district. We also are working to schedule a LEARN walk-thru of Davis High School construction in May / June depending on when the WA legislature adjourns. US Open: Don’t forget your invite to play in the US Open this year…that would be the 18th Annual Central District’s Under the Sun OPEN! As a Board Member you have a complimentary invite to join us on Friday, June 12th, at Apple Tree Golf Resort in Yakima. SCHEDULED EVENTS:

Cuatro de Mayo con Vino! (Yakima) – May 4 Build Your Network Lunch (Wenatchee) – May 12 Quarterly Safety Forum (Wenatchee & Yakima) – May 27 Under the Sun OPEN (Yakima) – June 12

Date: April 6, 2015

To: AGC Board of Trustees

From: Liz Evans, AGC Northern District Manager

Re: April 2015 Board Report

Membership: The district has two new members to report: Whatcom Lawns (Associate), who came to us

from a recommendation from Management Services NW; they did not qualify for our Retro program last

year, but waited a year to try successfully again this year; and, The Erection Company (Subcontractor)

joined to take advantage of our health insurance. They have informed Stacy that they are not going to join

our Retro program. We lost three members BP (Associate), Whatcom Construction (Subcontractor), and

PM Northwest (Subcontractor). All of the attrition was due to financial decisions or companies going out of

business.

District News: Our monthly Build Your Network Lunch program continues to draw decent participation. I

have received positive feedback from members on this program. Over the past year, we have welcomed

many political representatives, industry experts and community leaders for informal conversation over

lunch. Construction activity has been rather strong in our area and will continue to perform well with three

refinery maintenance shutdowns occurring in the next couple of months.

Advocacy: Two district members, Scott Isenhart and Jeremy Carroll, went with me to Olympia for a

meeting with Representative Vince Buys (R, 42) to discuss a bill he sponsored on mandating listing the

building envelope contractor on public works bids. Scott testified against the bill in the House Capital

Budget Committee. We had a great turnout for lobby day, where our team spent the afternoon with Duke

Schaub and chatting with legislators in the 10, 39, 40 and 42nd districts.

NAWIC Participation: It has been my pleasure to get more involved in the National Association of Women

in Construction (NAWIC) organization. Many of our members participate with this group. AGC hosted a

very well attended NAWIC event in January, which featured 5 of our members for a panel discussion on

finding your seat at the table. In April, AGC is again working with NAWIC to host an information networking

event with the women students in UW’s Construction Management program.

Build Washington: I am busy working on the Build Washington Awards program, which will be held at the

Museum of Flight on May 14. We had good participation this year, with many applications coming from

smaller contractors than in the past.

Date: April 6, 2015

To: AGC Board of Trustees

From: Paul Mayo, Flat Iron Construction; Seattle District Representative to the Board

Subject: SEATTLE DISTRICT REPORT

ACTIVITIES AND EVENTS Scott Kubly, Seattle’s Department of Transportation’s new director was the featured speaker at the district’s January meeting. Scott presented his transportation vision for Seattle and touched on the possibility of a new City transportation levy. Recently the Mayor announced a $900,000 proposal to repair/replace roads and bridges and make bicycle and transit improvements.

In February we heard from Susan Champlain, the Boeing Company's Director of State & Local Government Operations, who provided an overview of Boeing’s anticipated local employment growth, its commitment to the environment, overview of its construction projects and Boeing’s expectations for its future in both the Puget Sound region and Washington State.

The ABC’s of Builder’s Risk Insurance was presented by Zak McIsaac and Tristan Swanson, of Ashbaugh Beal at the March 17 meeting. The Seattle Housing Authority will discuss the huge Yesler Terrace Redevelopment Project 9 (just beginning) at the April 21 meeting. The 2014 Oles Morrison/AGC of Washington Seattle District Golf Tournament will take place on Monday, May 18, at Bear Creek Country Club in Woodinville. We have only a few sponsorship activities remaining, so if you would like to get your company’s name in front of one of the biggest events of the year - do it now! The district is also soliciting quality items to raffle off, another way to promote your company. If you would like to sponsor an activity or donate a raffle item, just contact Jerry Dinndorf or Stacy Mullane. ADVOCACY Seattle Priority Hire Policy In January the City adopted its Priority Hire Ordinance, which requires a Project Labor Agreement on all City projects greater than 5 million dollars. Despite AGC objections, the City is negotiating the agreement without any AGC contractors present at the table. AGC registered its concerns in a letter to the Mayor last month. No response has been received as of this writing. An agreement is anticipated to be approved by the time the Board meets. Further, the City rejected the applications of two experienced AGC union contractor members to serve on the Advisory Committee being established for the program in favor of Tom Peterson, of Hoffman Construction. Tom Peterson has a history of supporting Project Labor Agreements. The City did name member Jay Demme to serve as an Open Shop representative on the committee.

Westlake Cycle Track The intersection of Highland and the cycle track remains problematic. The City’s 90% design for the intersection still doesn’t include any signals to control the movements of pedestrians, bicycles and vehicles. The City is providing flashing warning lights at the intersection, but staff does not believe this will be enough to prevent accidents. During peak periods, traffic will congest at this intersection. In addition to this concern, the design may limit access to AGC’s tandem parking slots adjacent to the service road as well as make it more difficult to load and unload tour busses serving Argosy Cruises. Staff will be meeting with the City prior to the Board meeting, and we will update the Board at its meeting with any new information we receive.

King County Revises Noise Ordinance The Metropolitan King County Council today has adopted a modernized and simplified set of noise guidelines based in part on recommendations from AGC for residents living in the unincorporated communities of King County. The biggest change for contractors is eliminating decibel level measurements and substituting reasonable operating hour limits.

Affordable Housing Linkage Fees The Coalition for Affordable Housing, a business interest group, was formed in response to the Seattle Council passing a resolution to fund affordable housing by imposing a tax on all new development, better known as a linkage fee. The group recently sent a letter to the Mayor questioning the legality of the proposal and suggesting other legal and effective ways to meet the objective. In the meantime the Council is moving ahead to have an ordinance in place by the end of June. While not a member of the coalition, AGC is supporting the objectives of the group.

Candidate Evaluations Over 40 candidates have registered to run in the new Seattle District elections, and the retirement of Larry Phillips will bring changes to the King County Council. AGC will be participating in the Seattle Chamber’s review of candidates and will conduct select interviews of candidates on May 12 and 13. Any Board members who would like to participate are welcome. The District elections present an opportunity to change the face of the Council, but the reality is setting in as very few of the candidates registered, to date, support the interests of business. INDUSTRY NEWS Pike Place Market Expansion A Council committee recently approved funding to expand the Pike Place Market, which will connect the current Pike Place Market to the Seattle downtown central waterfront. The expanded space will provide more stalls for farmers and artists, 300 additional below-grade, short-term parking spaces, 40 low-income apartments for senior housing, 30,000 square feet of public open space, and other amenities.

Port of Seattle 2015 Projects The Port’s 2015 budget projects significant growth at Seattle-Tacoma International Airport, stable revenue in the seaport division, and continuing recovery in the real estate business. Visit the Port’s website for a list of the projects.

Labor Contracts Negotiations Labor contracts with the Carpenters, Cement Masons, Laborers, Operating Engineers and Teamsters will expire on May 31, 2015. AGC has begun negotiations with the respective trades with the goal of having agreements in place prior to their expiration. For current updates contact Doug Peterson. MEMBERSHIP Since the December Board meeting, the Seattle District has joined 15 new members: 2 General Contractors, 3 Subcontractors, and 10 Associate members.

Date: April 8, 2015

To: Board of Trustees

From: Tim Attebery, Southern District Manager

Re: Southern District Board Report

Our February Dinner Meeting speaker was AGC Chief Lobbyist Jerry Vanderwood. Jerry covered

the transportation package, worker’s comp reforms, the bid‐listing bill and the general political

environment in Olympia this session.

Our March Dinner Meeting speaker was NW Innovations Works President Vee Godley. NW

Innovations Works plans to build three $1.8 billion methanol plants over the next few years.

The methanol plants will be located at the Port of Tacoma, Port of Kalama and Port Westward.

Contractors will have an opportunity to be involved in the bid packages, and NW Innovations

Works wanted to reach out to AGC members.

Our April Dinner Meeting speaker was Congressman Derek Kilmer. Derek gave high praise to

AGC staff and briefed contractors on how his appointment to the House Appropriations

Committee may help Northwest contractors.

At our May Cinco de Mayo Dinner Meeting, we will be entertained by comedian and stuntman

Matt Baker. Matt has entertained people at corporate events, he's been voted Seattle's

Funniest Alternative Comic, has been featured on Last Comic Standing, Tosh 0 and America's

Got Talent. This is always a fun event for the AGC membership.

In February the Army Corps of Engineers came to the AGC Offices in Fife and gave a project

preview to contractors on upcoming federal projects in the Northwest. The meeting was well‐

attended as always.

For the third year in a row AGC’s Southern District won the Membership Growth and Retention

Award. This award was presented to the Southern District at the AGC Annual Meeting. When

companies stay with your association and non‐members want to join, you have a good thing

going.

The Southern District saw these new companies join AGC recently: The Dickson Law Group,

North Mason Fiber, Ritchie Bros Auctioneers, Ascendent LLC, Energy Electric LLC and Tradesmen

Electric Custom Controls Corporation dba Custom Electric & Controls.

The Southern District continues to be very active in local governmental affairs issues.

Marketing Department Report | April 2015 Sean Lewis, Marketing Director ‐ [email protected]

On‐going, regular Marketing‐department activities compiling, editing and graphic support for all newsletters (all districts, Works, FLF and BUILD PAC)

production and managing weekly rotating of DJC advertising to support timely initiatives such as Retro‐

program registration, member renewals, health plan, retirement plan, safety Team, etc.

support of various Association communications activities, such as special‐event promotions,

publications, member bulletins, Action Alerts, etc. to include production and coordination, design, etc.

social‐media management (Facebook, Twitter) to help keep AGC engaged in the industry and community

photography for any and all events, as feasible

website updates and maintenance; calendar‐event postings, etc. as needed

Major annual events and projects Annual Convention: promotion, advertising, member communications, coordination/production

Build Washington Awards: promotion, advertising, member communications, coordination/production

Annual Report: design, writing, editing and production; for distribution at annual convention

Current/upcoming major projects New website: this is currently underway with a new custom‐designed platform. Progress is slower than expected;

approximately 75% complete at this time and being done in conjunction with a new database system. Targeting a June

completion/release for the website. New site will be an upgrade of the existing AGC site, with a very similar structure, but

we’re trimming the page count down from approx. 160 pages to fewer than 100, hopefully.

New ad/promotional messaging for health plan, based on latest developments in the health‐insurance arena.

Upgrade of social‐media approach using outside services: currently looking at some options.

Integration of members’ photographs into AGC ads, website and media wherever possible: currently developing approach to

accomplishing this effectively.

1

Date: March 25, 2015 To: AGC Board of Trustees From: Gary Smith, Chair Re: Property Report Following is a brief summary of what has been accomplished over the last few months and what is coming for the AGC Building and Fife property. Leasing Update As of this date we have two tenant spaces vacant: Suite 810 at 2936 sq. ft., and Suite 713 at 3110 sq. ft. The Redinger White Shepard Law Group moved into Suite 905 (2380 sq. ft.) January 1st; Pacificad took Suite 1000 (2347 sq. ft.) December 1st and the law firm of Jennifer Papahron recently signed a three-year lease for Suite 815 (542 sq. ft.). Current tenant will be vacating the space by April 30th. We had hoped to be fully occupied by year-end; but, unfortunately, that didn’t happen. As we approach the end of the first quarter, we will begin a major push in partnership with our broker to find tenants for the remaining vacant space. There are several noteworthy renewals to report. One is Republic Parking, who recently renewed for three years. Negotiations recently concluded with GMMB, whose lease expires in June. They presently occupy 5780 square feet on the 10th floor. Another important lease coming up this September is Starbucks. Discussions have begun with them, and a new lease will be finalized shortly. The remaining leases coming up for renewal this year do not expire until the last quarter. Fiber Optics By the time you receive this report, we will have another vendor offering fiber optics to building tenants. Currently we have Comcast on site. Century Link has expressed an interest in providing fiber optics to our building, but we have been unable to come to terms with them. They wanted AGC to pay for all costs associated with getting service to the building even though there were several tenants who expressed interest in Century Link over Comcast. They recently changed their policy on who pays for installation and have agreed to pay for all costs associated with bringing fiber optics to the building, which has now been accomplished. Restroom Upgrades The 8th floor restroom improvements were completed at the close of 2014 leaving just two floors to do (4 and 10), which are scheduled to be completed the latter half of 2015. Elevator Carpet All elevator carpeting has been replaced with a more durable and darker material. Having a Starbucks in the building comes at a price because of spills that usually seem to occur in the elevators. The change to a darker color will make such occurrences less noticeable. Security Cameras Bids were solicited for the installation of security cameras for the first and second floor lobbies. The successful bidder was Convergint Technologies. We have had a few incidents over the years that have occurred primarily in the lobbies and restrooms and with the installation of security cameras it could assist

2

us in getting visuals of those responsible should we experience such issues in the future. This project was completed in March. Emergency Generator Funds were budgeted this year to upgrade the emergency generator that is used to supply backup power for the building when there are electrical power outages. This work is scheduled for May of this year. Fife Roof The AGC office roof in Fife is in need of replacement as we have run the course with band-aid fixes. Money was budgeted for this year to replace the roof and work is scheduled to begin in August. First and Second Floor Sliders The building’s first and second floor entrance sliders have become troublesome in recent years resulting in monies having to be spent periodically to get them repaired. Age is one of the contributing factors along with individuals who force them open after hours. Monies have been in the capital budget for a number of years to address this problem, and 2015 will be the year to get this work completed. It appears we may have significant savings based on the bid proposals that have been received. Work is tentatively scheduled for October of this year. Stairwell Locks The building stairwell door locks, specifically the solenoids, have begun failing and the decision was made to begin replacing all of them, which has now been completed. Most of the projects described above are all that are contemplated for 2015 in our Capital Budget. Additional monies may have to be spent for those things that come up over the course of the year that weren’t planned or budgeted; however, there are usually adequate funds in the operations budget to cover such expenses. In addition to the robust construction activity in the south Lake Union area, we continue to receive inquiries regarding the AGC property. One is the Seattle Seaplane Museum. Meetings continue with project planners, the most recent one held on February 4th with City DPD. This project will be reported in more detail at the Board of Trustees’ meeting on April 20th. The Property Committee is planning to discuss this opportunity at its March 26th meeting. The other project that has AGC’s attention is the City of Seattle’s Cycle Track, which is currently in the design phase. Construction is expected to be completed by first quarter of 2016. AGC input to date over concerns of safety and other issues have been for the most part downplayed by the City, and there haven’t been many substantive changes based on our input or that of others. The City has elected to bypass the need for an environmental review as they feel it is not required. Property Committee meeting dates for the coming year are:

Thursday / March 26 / 11:30 Thursday / May 28 / 11:30 Thursday / September 24 / 11:30 Thursday / October 29 / 11:30

If you have any questions regarding the content of this report please let me know.

of 2

For Internal Use Only

AGC 2015 February Financial Notes Net Operating Income – see Consolidated Statement of Operations (Page 9) As of February 28, 2015 the Net Operating Income (NOI) equals $1.367 million vs. a year-to-date budget NOI of $1,327 million creating a favorable year-to-date budget variance of $40K. The year-to-date positive revenue variance of $20K combined with the positive expense variance of $20K produces the total unfavorable year-to-date budget variance of $40K. Income Variance The year-to-date positive revenue variance of $20K (see Consolidated Statement of Operations – YTD Variance column) is primarily from above budget revenue in Event Revenue and Other Rent Revenue. Expense Variance The year-to-date positive expense variance of $20K is primarily comprised of under budget expenses in most expense categories except Event Expense and Building / Marina Expense. Accounts Receivable

Building Marina AR Parking AGCEF Other AR Total

January (31,749) (2,766) 28,739 17,992 111,219 123,435

February 1,378 27,594 27,240 25,958 54,692 136,862

Note: AR Building primarily represents past billings from building tenants. AR Marina primarily represents past billings from moorage tenants. AR Parking primarily represents receivables for parking. AR AGCEF represents billings to AGC Education Foundation

AR Other represents billings outstanding for purchases and events (i.e. annual meeting, sponsorships, membership dues, Retro, etc.).

AGC Financial Notes - Continued

Page 2 of 2

For Internal Use Only

AGC Actual / Forecast --- see 12 Month Actual / Forecast to Budget As of February 28, 2015, AGC’s 2015 annual forecast net operating income equals $118K versus an annual budget net operating income of $78K. AGC Building: Occupancy rate is 94% as of February 28, 2015.

For Internal Use Only February-15

2015 2015Total Total

Actual / Forecast Budget VarianceRetro Plan Income 1,785,609 1,742,760 42,849Retro Exp Gross (1,560,609) (1,517,760) (42,849)

Net Retro Income 225,000 225,000 0

REVENUES

Membership Dues 1,722,195 1,725,000 (2,805)Program Revenue / Grant Revenue 168,444 173,022 (4,578)Event Revenue 268,411 253,850 14,561Building / Retail Rent (Seattle, Marina, Fife) 2,793,326 2,797,726 (4,400)Other Rent Revenue (Parking, Moorage) 937,684 922,040 15,644Other Revenue / CAM 64,052 62,100 1,952Misc Income 16,187 16,195 (8)Gain/Loss on Disposal of Asset 0 0 0

Operating Revenue 5,970,299 5,949,933 20,366

TOTAL REVENUE 6,195,299 6,174,933 20,366

EXPENSES

Salaries 2,203,180 2,217,394 14,214Payroll Burden Taxes & Benefits 634,082 638,293 4,211Auto Expense / Corporate Travel 36,661 37,755 1,094Miscellaneous Meetings 120,940 121,350 410Consultant Fees 56,155 54,833 (1,322)Office Expense 73,326 77,923 4,597Membership Dues/Donations 167,321 168,612 1,291Rent 65,432 65,666 234Technology Expense 68,392 75,415 7,023Phone Exp. 33,687 34,542 855Program / Grant Expense 98,108 93,102 (5,006)Membership Promotion 163,615 179,100 15,485Event Exp 281,697 268,683 (13,014)Insurance / Tax / Training 62,989 65,050 2,061Building / Marina Expense 1,262,590 1,247,004 (15,586)

Leasing Comm. Amortization 66,094 66,092 (2)Depreciation 683,050 686,382 3,332

TOTAL EXPENSES 6,077,318 6,097,196 19,878

OPERATING INCOME (LOSS) 117,981 77,737 40,244

NET OPERATING INCOME (LOSS) - FORECAST VS. BUDGET 117,981 77,737 40,244

Non-Operating Investment Income (Loss) 67,644 12,000 55,644

NET INCOME (LOSS) 185,625 89,737 95,888

Gain/Loss on Disposal of Asset 0 0 0

TOTAL INCOME 185,625 89,737 95,888

Working Capital

Net Operating Income 117,981 77,737 40,244

Amortization 66,094 66,092 2Depreciation 683,050 686,382 (3,332)

Available Cash (Working Capital) 867,125 830,211 36,914

Less:

Debt Service - Principle 77,961 78,000 39Capital Expenditures - Association 104,500 104,500 0Capital Expenditures - Seattle Building 193,619 198,930 5,311Capital Expenditures - Fife Building 55,000 55,000 0Capital Expenditures - Marina 0 0 0Tenant Improvements - Building 125,000 125,000 0Lease Commissions 80,000 80,000 0

Total Deductions 636,081 641,430 5,349

Cash (Working Capital) Variance Favorable (Unfavorable) 231,045 188,781 42,264

AGC of Washington

2015 Cash Activity Forecast

Associated General Contractors of Washington

Statement of Financial PositionFor the Period Ending 02/28/2015

Feb Dec

Unaudited Audited

ASSETS

Current Assets

Cash 2,241,286 2,553,041

Building Savings 400,461 200,369

Short-Term Investments 84,952 70,319

Accounts Receivable 136,862 145,406

Prepaid Expenses 260,671 203,978

Total Current Assets 3,124,231 3,173,113

Group Retrospective Rating Plan Assets 17,986,735 18,246,707

Prepaid Lease Commissions 81,427 82,109

Long Term Investments 2,281,083 2,236,072

Property and Equipment

Land and Land Improvements 2,376,138 2,376,138

Buildings 13,154,541 13,135,913

Leasehold Improvements 1,290,404 1,290,404

Furniture and Equipment 965,879 961,734

Automobiles 43,643 43,774

Marina 1,536,739 1,536,739

Total Property Plant and Equipment 19,367,344 19,344,701

Less: Accumulated Depreciation (10,622,816) (10,511,651)

Net Property Plant and Equipment 8,744,527 8,833,050

TOTAL ASSETS 32,218,003 32,571,051

LIABILITIES & NET ASSETS

Current Liabilities

Accounts Payable 127,897 470,185

Accrued Expenses 87,693 87,426

Deferred Income 12,950 1,177,939

Current Portion - LT Debt 84,576 84,576

313,116 1,820,126

Group Retrospective Rating Plan Liability 17,986,735 18,246,707

Long Term Debt, Less Current Portion 361,571 375,466

Tenant Deposits 191,748 190,763

Total Liabilities 18,853,170 20,633,061

Net Assets

Unrestricted 10,864,834 9,437,989

Board Designated 2,500,000 2,500,000

TOTAL UNRESTRICTED NET ASSETS 13,364,834 11,937,989

TOTAL LIABILITIES AND NET ASSETS 32,218,003 32,571,051

- -

[INTERNAL REPORT]

Unaudited

Changes in Net Assets 1,426,845

Adjustments to Changes in Net Assets to Cash Provided by Operating Activities

Depreciation 111,165

(Gain) Loss on Disposal of Property -

(Gain) Loss on Sales of Investments 516

(Gain) Loss on Investments @ Market (63,046)

(Increase) / Decrease in accounts:

Accounts Receivable 8,544

Prepaid Expenses and Other Assets (56,011)

Increase / (Decrease) in accounts:

Accounts Payable (342,288)

Accrued Expenses 267

Tenant Deposits 985

Deferred Income (1,164,989)

Net Cash Provided / Used) by Operating Activities (78,012)

Cash Flow From Investing Activities:

Purchase of Long Term Investment 17,519

Leasehold Improvements - Seattle Bldg -

Capital Improvements on Seattle Bldg (18,629)

Capital Improvements on Marina -

Purchase of property, equipment and automobile (4,015)

Net Cash Provided / (Used) by Investing Activities (5,124)

Cash Flow from Financing Activities:

Current Long Term Debt -

Long Term Debt / Loan Payments (13,895)

Net Cash Provided / (Used) by Financing Activities (13,895)

Net Increase (Decrease) in Cash (97,031)

Cash, Beginning of Year 2,753,410

Cash Equivalents Beginning of Year 70,319

Total Cash and Cash Equivalents, Beginning of Year 2,823,729

Cash, End of Period 2,641,747

Cash Equivalents, End of Period 84,952

Total Cash and Cash Equivalents, End of Period 2,726,698

-


Cash Flow Statement

For the 02 Month(s) ending 02/28/2015

Associated General Contractors of Washington (INTERNAL REPORT)

2/28/2015

Schedule of Reserve Funds Balance

Operations 3000-10-901 420,000

Plant & Equipment 3000-10-902 1,980,000

Special Projects 3000-10-903 100,000

2,500,000

Seattle Building Savings Account 400,415

** Statement of Capital Expenditures 2015 Balance

(** Designed for Budget Monitoring Purposes) 2/28/2015 Approved Budget Remaining

Parking Lot Improvements 1503-50-000 - 51,000 51,000

Fife Building 1505-85-000 - 30,000 30,000

Furniture & Fixtures 1508-10-000 - - -

Office Equipment 1509-10-000 - - -

Automobile - Safety Dept. 1510-10-000 (130) 25,000 25,130

Computer Hardware/Software 1513-10-000 4,145 90,000 85,855

SEA Bldg - Tenant Improvements 1550-50-000 - 125,000 125,000

SEA Bldg - Capital Improvements 1551-50-000 18,629 690,000 671,371

SEA Bldg - Lease Commissions 1402-50-050 - 35,000 35,000

Seattle Marina 1575-75-000 - 90,000 90,000

22,643 1,136,000 1,113,357

General Asset Capitalization Policy

- computer hardware, software, office equipment, and furniture with useful life of at least

one year and $2,000 or more must be capitalized

- capital assets for properties must be at least $5,000 to be capitalized

- depreciation expense per year is based on estimated useful life

- depreciation expense may be prorated in the 1st year of a new purchase

Schedule of Depreciation Expenses Actual Budget Variance

Seattle District Office 6950-12-000 44 - (44)

Southern District Office 6950-14-000 229 229 0

Technology 6950-17-000 2,918 3,000 82

Administration 6950-18-000 1,529 1,792 263

Accounting 6950-19-000 262 262 0

State Government 6950-30-000 2,604 2,610 6

Labor Relations 6950-34-000 64 64 (0)

Membership 6950-36-000 4,181 5,061 880

Safety 6950-42-000 1,515 1,640 125

Central District 6950-48-000 68 68 (0)

Seattle Building 6950-50-000 82,898 83,548 650

Seattle Marina 6950-75-000 8,566 8,543 (23)

Fife Building 6950-85-000 6,287 7,680 1,393

111,165 114,498 3,332

YTD 2015 Balance

Board Contingency Expenses: 5120-13-054 2/28/2015 Approved Remaining

Board Board

Budget Contingency Contingency

Try-A-Trade Career Fair 1,000

20,000 1,000 19,000

2/28/2015

YTD

ACTUAL BUDGET VAR ACTUAL BUDGET VAR ACTUAL BUDGET VAR

I. Building & Properties:

a) Seattle Building 492,461 484,472 7,989 255,326 274,883 (19,557) 237,135 209,589 27,546

b) Seattle Marina 118,749 115,997 2,752 69,003 50,955 18,048 49,747 65,042 (15,295)

c) Fife Building 8,819 6,364 2,455 33,765 21,339 12,427 (24,946) (14,975) (9,972)

Total Building & Properties 620,029 606,833 13,196 358,094 347,177 10,917 261,935 259,657 2,279

II. Association:

1. Financial Assets 0 0 0 0 0 0 0 0 0

2. Admin. & Management

a) Board of Trustees 0 0 0 8,113 7,944 169 (8,113) (7,944) (169)

b) Technology 0 0 0 21,737 28,512 (6,775) (21,737) (28,512) 6,775

c) Administration 540 0 540 63,294 65,282 (1,988) (62,754) (65,282) 2,528

d) Accounting 9,200 9,195 5 39,647 35,858 3,789 (30,447) (26,663) (3,784)

9,740 9,195 545 132,791 137,595 (4,805) (123,051) (128,400) 5,350

3. Member Services

a) Communications 0 0 0 35,251 44,556 (9,305) (35,251) (44,556) 9,305

b) Meetings & Events 0 0 0 12,821 13,450 (629) (12,821) (13,450) 629

c) Special Events 101,860 89,000 12,860 118,395 104,825 13,570 (16,535) (15,825) (710)

d) Member Service 1,621,840 1,624,645 (2,805) 32,911 36,262 (3,351) 1,588,929 1,588,383 546

e) Future Leadership Forum 500 0 500 3,710 3,667 43 (3,210) (3,667) 457

1,724,200 1,713,645 10,555 203,087 202,759 328 1,521,113 1,510,886 10,227

4. Education & Training Service

a) Workforce Development 0 0 0 24,882 29,569 (4,686) (24,882) (29,569) 4,686

b) Safety 16,940 24,155 (7,215) 71,171 74,409 (3,238) (54,231) (50,254) (3,977)

c) Group Retro 279,329 252,960 26,369 279,329 252,960 26,369 0 0 0

296,269 277,115 19,154 375,382 356,937 18,445 (79,113) (79,822) 709

5. Government Relations

a) Government Affairs Council 8,710 7,000 1,710 73,030 88,820 (15,791) (64,320) (81,820) 17,501

b) Build-Pac 0 0 0 9,040 8,514 526 (9,040) (8,514) (526)

c) AGC - Federal Facilities 0 0 0 617 660 (43) (617) (660) 43

8,710 7,000 1,710 82,687 97,995 (15,308) (73,977) (90,995) 17,018

6. Industry Relations

a) Labor 0 0 0 38,498 39,563 (1,065) (38,498) (39,563) 1,065

b) Open Shop 0 0 0 2,441 2,707 (266) (2,441) (2,707) 266

0 0 0 40,939 42,270 (1,331) (40,939) (42,270) 1,331

7. Districts

a) Seattle District 3,370 2,900 470 28,278 28,548 (270) (24,908) (25,648) 740

b) Southern District 3,105 2,500 605 36,087 38,925 (2,839) (32,982) (36,425) 3,444

c) Northern District 0 0 0 19,826 18,447 1,378 (19,826) (18,447) (1,378)

d) Central WA District 500 0 500 21,553 21,577 (23) (21,053) (21,577) 523

6,975 5,400 1,575 105,743 107,497 (1,754) (98,768) (102,097) 3,329

Total Association 2,045,894 2,012,355 33,539 940,629 945,053 (4,425) 1,105,265 1,067,302 37,964

Total of Assoc. & Prop 2,665,923 2,619,188 46,735 1,298,722 1,292,230 6,493 1,367,200 1,326,958 40,242

Non-Operating Income (Loss) 62,530 4,000 58,530 2,886 0 2,886 59,644 4,000 55,644

Grand Total 2,728,453 2,623,188 105,265 1,301,608 1,292,230 9,379 1,426,845 1,330,958 95,886


Unaudited Statement of Activities by Cost Center


REVENUE EXPENSES REVENUE OVER EXPENSES

MTD

ACTUAL BUDGET VAR ACTUAL BUDGET VAR ACTUAL BUDGET VAR

I. Building & Properties:

a) Seattle Building 254,326 246,721 7,605 137,990 134,991 2,999 116,336 111,730 4,606

b) Seattle Marina 58,726 58,043 683 27,186 25,510 1,676 31,540 32,533 (993)

c) Fife Building 4,410 3,182 1,228 23,049 7,294 15,755 (18,640) (4,112) (14,527)

Total Building & Properties 317,462 307,946 9,516 188,226 167,796 20,430 129,236 140,150 (10,915)

II. Association:

1. Financial Assets 0 0 0 0 0 0 0 0 0

2. Admin. & Management

a) Board of Trustees 0 0 0 5,324 4,222 1,102 (5,324) (4,222) (1,102)

b) Technology 0 0 0 9,615 9,881 (266) (9,615) (9,881) 266

c) Administration 120 0 120 27,737 27,108 629 (27,617) (27,108) (509)

d) Accounting 9,195 9,195 0 15,409 16,839 (1,430) (6,214) (7,644) 1,430

9,315 9,195 120 58,085 58,051 35 (48,770) (48,856) 85

3. Member Services

a) Communications 0 0 0 16,836 17,159 (324) (16,836) (17,159) 324

b) Meetings & Events 0 0 0 10,177 9,100 1,077 (10,177) (9,100) (1,077)

c) Special Events 1,600 15,000 (13,400) 42,111 40,875 1,236 (40,511) (25,875) (14,636)

d) Member Service 225,877 109,948 115,929 16,591 16,531 60 209,286 93,417 115,869

e) Future Leadership Forum 500 0 500 1,878 1,834 45 (1,378) (1,834) 455

227,977 124,948 103,029 87,593 85,499 2,094 140,385 39,449 100,935

4. Education & Training Service

a) Workforce Development 0 0 0 12,437 14,784 (2,347) (12,437) (14,784) 2,347

b) Safety 4,320 15,590 (11,270) 30,190 29,762 428 (25,870) (14,172) (11,697)

c) Group Retro 169,329 126,480 42,849 169,329 126,480 42,849 0 0 0

173,650 142,070 31,580 211,957 171,027 40,930 (38,307) (28,957) (9,350)

5. Government Relations

a) Government Affairs Council 0 0 0 34,424 37,995 (3,571) (34,424) (37,995) 3,571

b) Build-Pac 0 0 0 3,758 5,257 (1,499) (3,758) (5,257) 1,499

c) AGC - Federal Facilities 0 0 0 308 330 (22) (308) (330) 22

0 0 0 38,490 43,582 (5,092) (38,490) (43,582) 5,092

6. Industry Relations

a) Labor 0 0 0 19,509 19,781 (273) (19,509) (19,781) 273

b) Open Shop 0 0 0 1,250 1,516 (266) (1,250) (1,516) 266

0 0 0 20,759 21,297 (538) (20,759) (21,297) 538

7. Districts

a) Seattle District 1,690 1,450 240 13,839 14,349 (510) (12,149) (12,899) 750

b) Southern District 1,755 2,000 (245) 17,275 20,362 (3,087) (15,520) (18,362) 2,842

c) Northern District 0 0 0 10,556 9,091 1,465 (10,556) (9,091) (1,465)

d) Central WA District 500 0 500 10,298 10,251 47 (9,798) (10,251) 453

3,945 3,450 495 51,969 54,053 (2,084) (48,024) (50,603) 2,579

Total Association 414,887 279,663 135,224 468,852 433,508 35,344 (53,965) (153,845) 99,880

Total of Assoc. & Prop 732,349 587,609 144,740 657,078 601,303 55,775 75,271 (13,694) 88,965

Non-Operating Income (Loss) 84,932 2,000 82,932 0 0 0 84,932 2,000 82,932

Grand Total 817,281 589,609 227,672 657,078 601,303 55,775 160,203 (11,694) 171,898


Unaudited Statement of Activities by Cost Center

For the Month ending 02/28/2015

REVENUE EXPENSES REVENUE OVER EXPENSE

FEB FEB YTD YTD YTD Annual Budget

ACTUAL BUDGET ACTUAL BUDGET Variance BUDGET Remaining

Retro Plan Income 169,329 126,480 279,329 252,960 26,369 1,742,760 1,463,431

Retro Exp Gross (169,329) (126,480) (279,329) (252,960) (26,369) (1,517,760) (1,238,431)

Net Retro Income 0 0 0 0 0 225,000 225,000

Membership Dues 225,877 109,948 1,621,840 1,624,645 (2,805) 1,725,000 103,160

Program / Grant Revenue 6,815 18,980 31,477 36,055 (4,578) 173,022 141,545

Event Revenue 3,600 15,000 103,860 89,300 14,560 253,850 149,990

Building / Retail Rent 229,484 227,451 441,342 445,743 (4,401) 2,797,726 2,356,384

Other Rent Revenue 81,943 75,320 166,384 150,740 15,644 922,040 755,656

Other Revenue / CAM 6,035 5,175 12,303 10,350 1,953 62,100 49,797

Misc Income 9,265 9,255 9,388 9,395 (7) 16,195 6,807

Total Revenue 563,020 461,129 2,386,594 2,366,228 20,366 6,174,933 3,788,339

Salaries 165,355 173,772 337,309 351,524 (14,215) 2,217,394 1,880,085

Payroll Burden Taxes and Benefits 50,859 53,191 102,171 106,382 (4,211) 638,293 536,121

Auto Expense / Corporate Travel 1,832 2,737 4,474 5,569 (1,095) 37,755 33,281

Miscellaneous Meetings 14,041 12,206 16,577 16,986 (409) 121,350 104,773

Consultant Fees 1,897 3,673 8,144 6,821 1,323 54,833 46,688

Office Expense 4,837 6,933 12,223 16,820 (4,597) 77,923 65,700

Membership Dues/Donations 11,887 13,697 26,872 28,163 (1,292) 168,612 141,740

Rent 5,294 5,473 10,712 10,946 (234) 65,666 54,954

Technology Expense 5,878 6,195 14,116 21,140 (7,024) 75,415 61,299

Phone Expense 2,627 2,941 4,987 5,842 (855) 34,542 29,555

Program/Grant Expense 13,878 2,175 29,186 24,179 5,007 93,102 63,916

Membership Promotion 6,622 12,590 18,545 34,030 (15,485) 179,100 160,555

Event Expense 39,412 38,000 115,515 102,500 13,015 268,683 153,168

Insurance/Tax/Training 4,740 3,617 19,223 21,284 (2,061) 65,050 45,827

Building / Marina Expense 97,502 74,868 177,157 161,571 15,586 1,247,004 1,069,847

Leasing Comm. Amort. 5,508 5,507 11,015 11,014 1 66,092 55,077

Depreciation 55,583 57,249 111,165 114,498 (3,332) 686,382 575,216

Total Expenses 487,749 474,823 1,019,393 1,039,270 (19,877) 6,097,196 5,077,803

Net Operating Income (Loss) 75,271 (13,694) 1,367,200 1,326,958 40,242 77,737 (1,289,464)

LT Inv - Dividends/Interest 383 2,000 689 4,000 (3,311) 24,000 23,311

LT Inv - Net Gain (Loss) 84,549 0 61,841 0 61,841 0 (61,841)

Investment Consultant Fee 0 0 (2,886) 0 (2,886) (12,000) (9,114)

Non-Operating Income (Loss) 84,932 2,000 59,644 4,000 55,644 12,000 (47,644)

Gain / Loss on Disposal of Asset 0 0 0 0 0 0 0

Grand Total 160,203 (11,694) 1,426,845 1,330,958 95,886 89,737 (1,337,108)


Statement of Operations

CONSOLIDATED




Retro Plan Income 169,329 126,480 279,329 252,960 26,369 1,742,760 1,463,431

Retro Exp Gross (169,329) (126,480) (279,329) (252,960) (26,369) (1,517,760) (1,238,431)

Net Retro Income 0 0 0 0 0 225,000 225,000

Membership Due 225,877 109,948 1,621,840 1,624,645 (2,805) 1,725,000 103,160

Program / Grant Revenue 6,815 18,980 31,477 36,055 (4,578) 173,022 141,545

Event Revenue 3,600 15,000 103,860 89,300 14,560 253,850 149,990

Misc Income 9,265 9,255 9,388 9,395 (7) 16,195 6,807

Total Revenue 245,558 153,183 1,766,565 1,759,395 7,170 2,393,067 626,502

Salaries 137,404 146,399 281,984 296,778 (14,794) 1,865,256 1,583,272

Payroll Burden Taxes and Benefits 42,469 44,529 85,326 89,058 (3,732) 534,349 449,023

Auto Expense / Corporate Travel 1,832 2,737 4,474 5,569 (1,095) 37,755 33,281

Miscellaneous Meetings 14,041 12,206 16,577 16,986 (409) 121,350 104,773

Consultant Fees 1,897 2,173 8,144 4,071 4,073 36,818 28,673

Office Expense 4,837 6,933 12,223 16,820 (4,597) 77,923 65,700

Membership Dues/Donations 11,887 13,697 26,872 28,163 (1,292) 168,612 141,740

Rent 5,294 5,473 10,712 10,946 (234) 65,666 54,954

Technology Expense 5,878 6,195 14,116 21,140 (7,024) 75,415 61,299

Phone Expense 2,627 2,941 4,987 5,842 (855) 34,542 29,555

Program/Grant Expense 13,878 2,175 29,186 24,179 5,007 93,102 63,916

Membership Promotion 6,622 12,590 18,545 34,030 (15,485) 179,100 160,555

Event Expense 39,412 38,000 115,515 102,500 13,015 268,683 153,168

Insurance/Tax/Training 4,740 3,617 19,223 21,284 (2,061) 65,050 45,827

Depreciation 6,707 7,363 13,415 14,727 (1,312) 87,757 74,342

Total Expenses 299,523 307,028 661,299 692,093 (30,794) 3,711,377 3,050,078

Net Operating Income (Loss) (53,965) (153,845) 1,105,265 1,067,302 37,964 (1,318,310) (2,423,575)

Gain / Loss on Disposal of Asset 0 0 0 0 0 0 0

Grand Total (53,965) (153,845) 1,105,265 1,067,302 37,964 (1,318,310) (2,423,575)



ASSOCIATION




Building / Retail Rent 229,484 227,451 441,342 445,743 (4,401) 2,797,726 2,356,384

Other Rent Revenue 81,943 75,320 166,384 150,740 15,644 922,040 755,656

Other Revenue / CAM 6,035 5,175 12,303 10,350 1,953 62,100 49,797

Total Revenue 317,462 307,946 620,029 606,833 13,196 3,781,866 3,161,837

Salaries 27,951 27,373 55,325 54,747 578 352,139 296,814

Payroll Burden Taxes & Benefits 8,390 8,662 16,845 17,324 (479) 103,944 87,098

Consultant Fees - 1,500 - 2,750 (2,750) 18,015 18,015

Building / Marina Expense 97,502 74,868 177,157 161,571 15,586 1,247,004 1,069,847

Leasing Comm. Amort. 5,508 5,507 11,015 11,014 1 66,092 55,077

Depreciation 48,875 49,885 97,751 99,771 (2,020) 598,625 500,875

Total Expenses 188,226 167,796 358,094 347,177 10,917 2,385,819 2,027,725

Gain / Loss on Disposal of Asset - - - - - - -

Net Operating Income (Loss) 129,236 140,150 261,935 259,657 2,279 1,396,047 1,134,112



BUILDING & MARINA




Building Rent - Seattle 4700-50-000 182,344 181,551 347,119 354,032 (6,913) 2,247,015 1,899,896

Parking Lot Income 4701-50-000 27,240 21,400 55,978 42,900 13,078 275,000 219,022

Operating Expense Reimb - Seattle Building 4702-50-000 5,809 5,000 11,619 10,000 1,619 60,000 48,381

Retail Rents 4703-50-000 38,350 38,350 76,701 76,700 1 460,200 383,499

Other Rental Income 4704-50-000 417 370 834 740 94 4,440 3,606

Late Fee Income:BLDG 4705-50-000 166 0 166 0 166 0 (166)

ATM Rental Income 4706-50-000 0 50 44 100 (56) 600 556

Misc Income - Bldg 4900-50-000 0 0 0 0 0 0 0

Total Revenue 254,326 246,721 492,461 484,472 7,989 3,047,255 2,554,794

Salaries 5010-50-000 18,388 17,984 36,372 35,967 405 215,805 179,432

Payroll Taxes 5020-50-052 1,665 1,612 3,391 3,225 166 19,347 15,957

Health/Security/LTD 5020-50-070 2,088 2,242 4,165 4,485 (320) 26,909 22,744

Pension 5020-50-139 1,660 1,745 3,307 3,489 (182) 20,935 17,628

Incentive Compensation 5010-50-058 0 0 0 0 0 15,136 15,136

Legal / Professional 5040-50-060 0 1,500 0 1,500 (1,500) 3,000 3,000

Audit 5040-50-076 0 0 0 1,000 (1,000) 8,250 8,250

Roof Repairs & Maint-Gen 6020-50-300 0 0 0 0 0 2,525 2,525

Pkg Lot Rep & Maint-Gen 6035-50-300 0 250 0 250 (250) 400 400

Snow Removal 6036-50-300 0 2,235 0 4,470 (4,470) 4,470 4,470

HVAC Contr Serv & Per-Off 6040-50-100 5,006 0 5,006 5,005 1 20,020 15,014

HVAC Contr Serv & Per-Gen 6040-50-300 678 0 2,158 1,505 653 6,020 3,862

HVAC Repairs & Maint-Off 6045-50-100 9,221 8,705 14,766 10,505 4,261 23,900 9,134

HVAC R & M- Conference Room 6045-50-300 0 0 0 0 0 2,000 2,000

Elev Contr Serv & Per-Off 6050-50-100 0 1,130 2,332 2,260 72 13,560 11,228

Elevator Rep & Maint-Off 6055-50-100 2,213 1,500 2,213 1,500 713 3,770 1,557

Electrical Rep & Supp-Off 6060-50-100 3,584 935 4,464 1,560 2,904 9,910 5,446

Plumbing Rep & Supp-Off 6070-50-100 77 500 1,269 1,000 269 6,900 5,631

Fire / Life / Safety-Gen 6080-50-300 95 4,380 5,637 10,240 (4,603) 16,145 10,508

General Repair & Maint-NR (Non-CAM Exp) 6100-50-000 0 0 0 6,000 (6,000) 6,000 6,000

General Rep & Maint-Off 6100-50-100 380 835 812 1,670 (858) 11,120 10,308

Painting & Decorating-Off 6110-50-100 0 1,350 0 1,850 (1,850) 2,725 2,725

Locks, Keys & Signage-Off 6120-50-100 355 600 936 2,000 (1,064) 5,150 4,214

Pest Control-Off 6130-50-100 0 57 0 114 (114) 684 684

Ext Landscaping Serv-Gen 6210-50-300 0 880 1,760 1,760 0 11,110 9,350

Ext Landscaping Rep-Gen 6220-50-300 0 0 0 150 (150) 300 300

Int Landscaping Serv-Off 6230-50-100 0 525 1,052 1,050 2 6,300 5,248

Base Janitorial Contr-Off 6310-50-100 14,282 7,200 14,105 14,400 (295) 86,400 72,295



SEATTLE BUILDING






SEATTLE BUILDING


Janitorial-Tenant Share 6310-50-900 178 177 355 354 1 2,124 1,769

Janitorial-Tenant Offset 6310-50-910 (178) (177) (355) (354) (1) (2,124) (1,769)

Janitorial Supplies-Gen 6320-50-300 1,869 1,665 5,532 3,330 2,202 19,980 14,448

Window Cleaning-Off 6330-50-100 1,150 0 1,150 0 1,150 5,195 4,045

Other Janitorial Serv-Off 6380-50-100 0 0 0 200 (200) 1,200 1,200

Other Janitorial Serv-Gen 6380-50-300 850 425 850 850 0 5,100 4,250

Other Security Serv-Gen 6450-50-300 0 0 0 0 0 3,510 3,510

Electricity-Off 6510-50-100 8,208 8,420 8,208 16,840 (8,632) 101,040 92,832

Water/Sewer-Off 6520-50-100 (1,088) 2,600 577 5,200 (4,623) 31,200 30,623

Water/Sewer-Tenant Share 6520-50-900 1,295 1,225 2,343 2,450 (107) 14,700 12,357

Water/Sewer-Tenant Offset 6520-50-910 (1,295) (1,225) (2,343) (2,450) 107 (14,700) (12,357)

Gas-Off 6530-50-100 3,690 4,585 8,677 9,170 (493) 55,020 46,343

Trash Removal & Recyc-Off 6550-50-100 4,261 1,600 6,621 3,200 3,421 19,200 12,579

Marketing & Leasing-NR 6710-50-000 0 100 0 200 (200) 1,200 1,200

Tenant Relations-NR 6720-50-000 0 0 0 50 (50) 4,900 4,900

On-Site Costs-Gen 6740-50-300 817 417 1,634 833 801 5,000 3,366

Administrative / Office Exp 6780-50-000 5 583 1,869 1,167 702 7,000 5,131

Other Administrative-Gen 6780-50-300 829 667 1,047 1,333 (286) 8,000 6,953

Real Estate Taxes-Gen 6810-50-300 0 0 0 0 0 290,000 290,000

Personal Property Tax-Gen 6820-50-300 0 0 0 0 0 1,000 1,000

Insurance-Gen 6900-50-300 9,590 9,375 19,181 18,750 431 112,500 93,319

Interest Expense 6910-50-000 1,502 1,450 3,003 2,925 78 16,050 13,047

Bad Debt: BLDG 6920-50-000 0 0 0 0 0 0 0

Brokers' Commission-Amortizatn 6600-50-000 5,167 5,166 10,333 10,332 1 62,000 51,667

Depreciation 6950-50-000 41,449 41,774 82,898 83,548 (650) 501,286 418,388

Total Expenses 137,990 134,991 255,326 274,883 (19,557) 1,799,172 1,543,846

Net Income 116,336 111,730 237,135 209,589 27,546 1,248,083 1,010,948



Building Rent - Marina Bldg 4700-75-000 4,380 4,368 8,704 8,647 57 52,327 43,623

Moorage Rent/A-E Docks 4701-75-000 54,286 53,550 109,572 107,100 2,472 642,600 533,028

Misc Income - Marina 4702-75-000 60 125 474 250 224 1,500 1,026

Total Revenue 58,726 58,043 118,749 115,997 2,752 696,427 577,678

Salaries 5010-75-000 8,934 8,760 17,694 17,521 174 105,125 87,431

Payroll Taxes 5020-75-052 810 806 1,655 1,612 43 9,671 8,016


Pension 5020-75-139 854 874 1,702 1,748 (46) 10,488 8,785


Legal-NR 5040-75-060 0 0 0 250 (250) 250 250

Audit 5040-75-076 0 0 0 0 0 4,100 4,100

Covered Moorage - R & M - NR 6020-75-000 0 0 0 0 0 1,450 1,450

Electrical Rep & Supp-NR 6060-75-000 0 0 759 0 759 1,150 391

Plumbing Rep & Supp-NR 6070-75-000 540 0 1,047 485 562 2,335 1,288

Fire / Life / Safety-NR 6080-75-000 18 850 18 900 (882) 2,610 2,592

General Reprs & Maint-NR 6100-75-000 1,790 340 2,317 680 1,637 4,080 1,763

Painting & Decorating-NR 6110-75-000 0 0 0 0 0 750 750

Locks, Keys & Signage-NR 6120-75-000 22 210 22 420 (398) 2,520 2,498

Base Janitorial Contr-NR 6310-75-000 0 235 0 470 (470) 2,820 2,820

Janitorial Supplies-NR 6320-75-000 75 75 150 150 0 900 750

Other Janitorial Serv-NR 6380-75-000 0 25 0 50 (50) 300 300

Land Lease Payments-NR 6460-75-000 0 0 24,992 0 24,992 111,400 86,408

Electricity-NR 6510-75-000 4,802 4,250 431 8,500 (8,069) 51,000 50,569

Electricity-Tenant Offset 6510-75-910 (4,086) (3,450) (7,853) (6,900) (953) (41,400) (33,547)

Water & Sewer-NR 6520-75-000 0 410 178 820 (642) 4,920 4,742

Water/Sewer-Tenant Offset 6520-75-910 (137) (205) (426) (410) (16) (2,460) (2,034)

Trash Removal & Recyc-NR 6550-75-000 3,380 1,665 6,028 3,330 2,698 19,980 13,952

Other Administration-NR 6780-75-000 409 550 737 1,100 (363) 6,600 5,863

Real Estate Taxes-NR 6810-75-000 0 0 0 0 0 44,000 44,000

Special Assessments-NR 6830-75-000 0 0 0 0 0 0 0

Insurance-NR 6900-75-000 4,388 4,681 8,777 9,362 (585) 56,175 47,398

Bad Debt: MARINA 6920-75-000 0 0 0 0 0 0 0

Depreciation 6950-75-000 4,283 4,272 8,566 8,543 23 51,259 42,693

Total Expenses 27,186 25,510 69,003 50,955 18,048 471,809 402,806

Net Income 31,540 32,533 49,747 65,042 (15,295) 224,618 174,872



SEATTLE MARINA




Office Rent - Fife Building 4700-85-000 4,410 3,182 8,819 6,364 2,455 38,184 29,365

Operating Exp Reimbursement - Fife Building 4702-85-000 0 0 0 0 0 0 0

Total Revenue 4,410 3,182 8,819 6,364 2,455 38,184 29,365

Salaries 5010-85-000 629 629 1,258 1,258 0 7,550 6,292

Payroll Taxes 5020-85-052 54 60 111 120 (9) 720 609

Health/Security/LTD 5020-85-070 96 101 191 201 (10) 1,207 1,016

Pension 5020-85-139 57 60 114 120 (6) 722 607

Incentive Compensation 5010-85-058 0 0 0 0 0 682 682

Audit 5040-85-076 0 0 0 0 0 2,415 2,415

Building Cleaning 6010-85-000 750 750 1,500 1,500 0 9,000 7,500

Supplies & Materials 6270-85-000 0 40 0 80 (80) 480 480

Misc. Building Maintenance 6290-85-000 465 475 1,229 950 279 5,700 4,471

Fire Alarm System Monitoring 6292-85-000 0 0 0 0 0 1,460 1,460

HVAC Maintenance & Repairs 6400-85-000 0 200 0 400 (400) 2,400 2,400

Electricity 6510-85-000 390 333 723 667 57 4,000 3,277

Water & Sewer 6520-85-000 0 165 0 330 (330) 1,980 1,980

Gas 6530-85-000 230 160 230 320 (90) 1,920 1,690

Trash Removal & Recyc 6550-85-000 162 140 162 280 (118) 1,680 1,518

Brokers' Commission - Amort - Fife 6600-85-000 341 341 682 682 0 4,092 3,410

Real Estate Taxes 6730-85-240 15,010 0 15,010 0 15,010 16,000 990

Insurance & Bonds 6900-85-000 1,721 0 6,266 6,750 (484) 6,750 484

Depreciation 6950-85-000 3,143 3,840 6,287 7,680 (1,393) 46,080 39,793

Total Expenses 23,049 7,294 33,765 21,339 12,427 114,838 81,073

Net Income (18,640) (4,112) (24,946) (14,975) (9,972) (76,654) (51,708)



FIFE BUILDING




Salaries 5010-13-000 2,352 2,184 4,536 4,368 167 26,209 21,673

Payroll Taxes 5020-13-052 197 159 390 318 71 1,910 1,520


Pension 5020-13-139 234 223 451 445 5 2,670 2,220


Officers / Board Meetings 5035-13-056 0 0 0 250 (250) 7,600 7,600

Miscellaneous Expense 5035-13-072 680 800 680 800 (120) 5,850 5,170

Office Expense 5050-13-000 666 650 666 1,350 (684) 1,350 684

Board Contingency 5120-13-054 1,000 0 1,000 0 1,000 20,000 19,000

Total Expenses 5,324 4,222 8,113 7,944 169 69,425 61,313

Net Income (5,324) (4,222) (8,113) (7,944) (169) (69,425) (61,313)



BOARD OF TRUSTEES




Salaries 5010-17-000 1,928 1,870 3,798 3,740 58 22,440 18,642

Payroll Taxes 5020-17-052 158 161 322 322 0 1,930 1,608


Pension 5020-17-139 134 180 267 359 (92) 2,154 1,887


Travel 5030-17-000 0 0 0 0 0 0 0

Miscellaneous Meetings 5035-17-072 95 30 95 60 35 360 265

Office Exp 5050-17-000 0 20 0 40 (40) 240 240

New Application 5081-17-017 0 0 0 0 0 1,000 1,000

Tech Equipment Maint- Parts 5082-17-000 66 800 109 1,600 (1,491) 9,600 9,491

Tech Equipment Maint- Parts 5082-17-019 0 0 0 0 0 0 0

Tech Equipment Maint- Parts 5082-17-036 0 0 0 0 0 0 0

Professional Service 5083-17-000 0 0 0 0 0 0 0

Professional Service 5083-17-017 2,863 3,000 2,863 6,000 (3,137) 36,000 33,137

Professional Service 5083-17-036 0 325 3,600 3,925 (325) 7,150 3,550

Professional Service 5083-17-042 0 0 0 0 0 0 0

Cell Phone Exp. 5087-17-000 150 190 300 380 (80) 2,280 1,980

New / Renewal Software License Fee 5089-17-017 2,177 650 6,708 5,150 1,558 11,500 4,792

Virus / Firewall Renewals 5089-17-062 0 950 0 3,525 (3,525) 3,525 3,525

Depreciation 6950-17-000 1,459 1,500 2,918 3,000 (82) 18,000 15,082

Total Expenses 9,615 9,881 21,737 28,512 (6,775) 120,010 98,273

Net Income (9,615) (9,881) (21,737) (28,512) 6,775 (120,010) (98,273)



TECHNOLOGY




Conference Center Rental 4100-18-238 100 0 500 0 500 600 100

McGraw Hill Affinity Plan 4100-18-303 0 0 0 0 0 0 0

Verizon Affinity Plan - NPP 4100-18-304 0 0 0 0 0 25,000 25,000

Enterprise Affinity Plan 4100-18-305 0 0 0 0 0 4,000 4,000

Office Depot Affinity Plan 4100-18-310 0 0 0 0 0 1,000 1,000

Misc Income 4900-18-194 20 0 40 0 40 100 60

Misc Income/Service 4900-18-195 0 0 0 0 0 100 100

Gain/Loss on Disposal of Asset 4950-18-000 0 0 0 0 0 0 0

Total Revenue 120 0 540 0 540 30,800 30,260

Salaries 5010-18-000 13,866 13,373 26,696 26,745 (49) 160,470 133,774

Temp Help 5010-18-051 0 175 0 350 (350) 2,000 2,000

Employee Milestone Awards 5010-18-057 0 0 2,970 1,480 1,490 2,220 (750)

Payroll Taxes 5020-18-052 1,180 1,060 2,306 2,120 186 12,721 10,415


Pension 5020-18-139 1,394 1,393 2,680 2,787 (107) 16,719 14,040


Auto / Travel Expense 5030-18-000 0 17 0 34 (34) 200 200

Miscellaneous Meetings 5035-18-072 230 370 1,431 740 691 4,440 3,009

Legal 5040-18-060 1,238 208 1,238 416 822 2,500 1,263

Office Exp. 5050-18-000 1,335 1,566 3,740 3,132 608 18,788 15,048

Office Equipment Lease 5050-18-066 0 0 1,125 615 510 2,460 1,335

Office Equipment Maintenance 5050-18-067 497 1,593 737 2,555 (1,818) 8,290 7,553

Postage - Administration 5050-18-069 0 50 (12) 100 (112) 600 612

Parking / Metro 5050-18-071 135 150 270 300 (30) 1,800 1,530

Contract Printing 5050-18-074 0 67 0 133 (133) 800 800

Office Equipment - Interest 5050-18-290 33 35 69 71 (2) 366 297

Membership Dues 5060-18-061 0 0 750 1,500 (750) 1,630 880

Subscriptions 5060-18-062 0 0 0 0 0 997 997

Donations/ Memorials 5060-18-063 0 100 0 200 (200) 1,200 1,200

Internet Connnection 5085-18-000 67 300 67 600 (533) 3,600 3,533

Telephone Exp.- Admin. 5086-18-000 471 550 941 1,100 (159) 6,600 5,659

Cell Phone Exp.- Admin. 5087-18-000 172 190 346 380 (34) 2,280 1,934

Insurance & Bonds 5900-18-064 0 0 7,600 8,500 (900) 8,500 900

Staff Professional Training 5900-18-065 4,740 2,917 5,586 5,834 (248) 35,000 29,414

Personal Property Taxes 5900-18-068 0 400 0 400 (400) 400 400

Depreciation 6950-18-000 765 896 1,529 1,792 (263) 10,754 9,225

Total Expenses 27,737 27,108 63,294 65,282 (1,988) 337,175 273,881

Net Income (27,617) (27,108) (62,754) (65,282) 2,528 (306,375) (243,621)



ADMINISTRATION




Misc. Income - Accounting 4900-19-195 0 0 5 0 5 0 (5)

AGCA Discount Earned 4900-19-200 9,195 9,195 9,195 9,195 0 9,195 0

Total Revenue 9,195 9,195 9,200 9,195 5 9,195 (5)

Salaries 5010-19-000 9,133 8,729 17,862 17,458 404 104,748 86,886

Temp Help 5010-19-051 908 0 2,192 2,500 (308) 10,000 7,808

Payroll Taxes 5020-19-052 751 759 1,516 1,518 (3) 9,108 7,593

Health/Security/LTD 5020-19-070 1,060 1,003 2,110 2,006 104 12,037 9,927

Pension 5020-19-139 802 841 1,591 1,683 (91) 10,095 8,504


Auto Expense 5030-19-000 0 20 0 40 (40) 240 240

Miscellaneous Meetings 5035-19-072 61 46 288 246 42 700 412

Audit 5040-19-076 0 0 5,228 0 5,228 7,418 2,190

ADP Payroll Fees 5040-19-077 439 475 1,101 1,175 (74) 6,000 4,899

Professional Service 5040-19-144 221 290 333 580 (247) 3,500 3,167

Office Exp. 5050-19-000 45 85 101 170 (69) 1,020 919

Postage - Accounting 5050-19-069 73 135 214 270 (56) 1,620 1,406

Contract Printing 5050-19-074 0 0 0 0 0 550 550

Bank Charge 5050-19-231 32 25 79 50 29 300 221

Membership Dues 5060-19-061 0 0 (103) 0 (103) 735 838

Subscriptions 5060-19-062 0 0 0 0 0 120 120

Discounts Allowed (Visa/Dues) 5140-19-078 1,754 4,000 6,872 7,500 (628) 21,000 14,128

State Excise Taxes 5900-19-079 0 300 0 400 (400) 7,500 7,500

City Excise Tax 5900-19-279 0 0 0 0 0 7,500 7,500

Depreciation 6950-19-000 131 131 262 262 (0) 1,572 1,310

Total Expenses 15,409 16,839 39,647 35,858 3,789 212,445 172,798

Net Income (6,214) (7,644) (30,447) (26,663) (3,784) (203,250) (172,803)



ACCOUNTING




Website Advertising 4100-22-197 0 0 0 0 0 7,000 7,000

Total Revenue 0 0 0 0 0 7,000 7,000

Salaries 5010-22-000 10,927 11,469 21,963 22,939 (976) 137,632 115,670

Payroll Taxes 5020-22-052 912 1,069 1,959 2,138 (179) 12,826 10,867


Pension 5020-22-139 1,047 1,152 2,104 2,304 (199) 13,824 11,719


Auto Expense 5030-22-000 0 40 227 80 147 1,400 1,173

Miscellaneous Meetings 5035-22-072 0 75 0 150 (150) 900 900

Professional Service 5040-22-144 0 50 0 100 (100) 600 600

Website Maintenance 5040-22-250 0 50 0 100 (100) 600 600

Office Exp. 5050-22-000 0 40 44 80 (36) 480 436

Postage - Communications 5050-22-069 94 333 828 1,733 (905) 4,000 3,172

Protrait Photography 5050-22-089 0 50 0 1,250 (1,250) 2,200 2,200

Subscriptions 5060-22-062 0 25 0 50 (50) 300 300

Cell Phone Exp.- Comm. 5087-22-000 75 100 150 200 (50) 1,200 1,050

Advertising 5140-22-082 745 500 3,412 3,500 (88) 12,300 8,888

Public Relations 5140-22-083 1,500 100 1,500 1,600 (100) 3,400 1,900

Newsletter 5140-22-084 0 175 0 350 (350) 2,100 2,100

Annual & Special Reports 5140-22-086 0 300 0 4,300 (4,300) 7,300 7,300

Total Expenses 16,836 17,159 35,251 44,556 (9,305) 232,065 196,814

Net Income (16,836) (17,159) (35,251) (44,556) 9,305 (225,065) (189,814)



COMMUNICATIONS




CEO Out of Town Travel 5035-24-090 0 0 0 450 (450) 2,000 2,000

Executive Leadership Council 5035-24-094 0 0 0 0 0 4,200 4,200

National AGC Convention 5035-24-095 0 0 0 0 0 35,000 35,000

Western Chapters Meetings 5035-24-098 9,259 6,300 8,845 6,300 2,545 8,500 (345)

National AGC Leadership Conference 5035-24-099 0 0 0 0 0 16,500 16,500

Chapter Meetings 5035-24-100 918 400 1,220 800 420 2,000 780

Miscellaneous Conference 5035-24-126 0 2,400 200 2,400 (2,200) 3,200 3,000

Immediate Past President Night 5150-24-093 0 0 2,556 3,500 (944) 3,500 944

Old Timers Night 5150-24-129 0 0 0 0 0 3,300 3,300

Total Expenses 10,177 9,100 12,821 13,450 (629) 78,200 65,379

Net Income (10,177) (9,100) (12,821) (13,450) 629 (78,200) (65,379)



MEETING AND EVENTS




Safety/Constr Awards Dnr-INC 4150-25-127 1,000 0 1,000 14,000 (13,000) 45,000 44,000

Annual Meeting 4150-25-128 600 15,000 100,860 75,000 25,860 78,000 (22,860)

Total Revenue 1,600 15,000 101,860 89,000 12,860 123,000 21,140

Salaries 5010-25-000 2,031 2,031 4,063 4,063 0 24,375 20,313

Payroll Taxes 5020-25-052 176 192 364 384 (20) 2,304 1,940


Pension 5020-25-139 213 222 427 445 (18) 2,668 2,242


Auto Expense 5030-25-000 0 100 104 200 (97) 1,200 1,097

Miscellaneous Meetings 5035-25-072 0 0 4 50 (46) 300 296

Office Exp. 5050-25-000 0 0 0 25 (25) 150 150

Postage 5050-25-069 56 25 133 50 83 150 17

Safety/Excellence Cons Din-Exp 5150-25-127 100 10,000 4,581 20,000 (15,419) 45,000 40,419

Annual Meeting 5150-25-128 37,180 28,000 106,078 78,000 28,078 78,000 (28,078)

Award & Recognition 5150-25-130 2,066 0 2,066 1,000 1,066 12,500 10,434

Total Expenses 42,111 40,875 118,395 104,825 13,570 172,343 53,948

Net Income (40,511) (25,875) (16,535) (15,825) (710) (49,343) (32,808)



SPECIAL EVENTS




Intro / Retro 4010-36-204 2,900 0 2,900 3,400 (500) 17,000 14,100

Constructor In 4010-36-206 1,100 0 7,700 6,000 1,700 6,000 (1,700)

Min Dues - Introductory GC 4010-36-209 1,558 1,700 3,008 8,500 (5,492) 11,700 8,692

Min Dues - Associates 4010-36-211 19,294 28,308 163,367 166,320 (2,953) 175,000 11,633

Nat'l Educational Associate 4010-36-212 0 0 0 100 (100) 100 100

Min Dues - Retro 4010-36-213 200 200 5,800 6,000 (200) 6,000 200

Youth Constructor Dues 4010-36-248 100 0 100 200 (100) 200 100

NH-GC Dues 4030-36-205 26,365 30,000 218,370 218,000 370 261,000 42,630

Vol Dues - GC 4030-36-208 137,820 33,615 834,830 859,000 (24,170) 877,000 42,170

Vol Dues - Sub 4030-36-210 36,540 16,125 385,765 357,125 28,640 371,000 (14,765)

Prior Years Dues 4040-36-000 0 0 0 0 0 0 0

Sub-Total Dues Revenue 225,877 109,948 1,621,840 1,624,645 (2,805) 1,725,000 103,160

YTD % to Budget 94.02%

Misc Income/Mailing Labels 4900-36-198 0 0 0 0 0 0 0

Roster Advertising 4900-36-216 0 0 0 0 0 6,000 6,000

Sub-Total Other Revenue 0 0 0 0 0 6,000 6,000

Total Revenue 225,877 109,948 1,621,840 1,624,645 (2,805) 1,731,000 109,160

Salaries 5010-36-000 10,690 10,355 21,044 20,709 335 124,256 103,211

Payroll Taxes 5020-36-052 913 880 1,836 1,759 77 10,555 8,719


Pension 5020-36-139 990 1,049 1,944 2,097 (153) 12,583 10,638


Auto Expense 5030-36-000 0 0 0 50 (50) 300 300

Miscellaneous Meetings 5035-36-072 0 100 0 200 (200) 1,200 1,200

W. Chapters "Membership" Meeting 5035-36-098 371 0 371 0 371 5,000 4,629

Office Exp. 5050-36-000 133 0 147 150 (3) 600 453

Postage - Member Services 5050-36-069 3 10 7 20 (13) 1,030 1,023

Cell Phone Exp.- Member Services 5087-36-000 65 80 131 160 (29) 960 829

Early Payment Disc. (2%) 5140-36-078 0 0 584 3,000 (2,416) 28,000 27,416

Membership Promotion 5140-36-080 0 125 0 250 (250) 2,000 2,000

Depreciation 6950-36-000 2,090 2,531 4,181 5,061 (880) 30,366 26,186

Total Expenses 16,591 16,531 32,911 36,262 (3,351) 243,229 210,318

Net Income 209,286 93,417 1,588,929 1,588,383 546 1,487,771 (101,158)



MEMBER SERVICE




FLF Event Revenue 4150-16-175 500 0 500 0 500 12,000 11,500

Total Revenue 500 0 500 0 500 12,000 11,500

Salaries 5010-16-000 1,155 1,291 2,337 2,581 (244) 15,488 13,151

Payroll Taxes 5020-16-052 98 119 203 237 (35) 1,424 1,221


Pension 5020-16-139 113 133 229 266 (38) 1,598 1,370


Rent / Facility Cost 5035-16-000 0 0 0 0 0 0 0

Membership Meetings 5140-16-177 0 90 0 180 (180) 2,300 2,300

Event / Entertainment 5150-16-175 0 0 170 0 170 8,100 7,930

Food / Beverage 5300-16-000 322 0 391 0 391 7,650 7,259

Total Expenses 1,878 1,834 3,710 3,667 43 40,336 36,626

Net Income (1,378) (1,834) (3,210) (3,667) 457 (28,336) (25,126)



FUTURE LEADERSHIP FORUM




Salaries 5010-26-000 1,558 1,558 3,115 3,115 0 18,690 15,575

Payroll Taxes 5020-26-052 128 131 263 262 1 1,572 1,309


Pension 5020-26-139 92 148 184 297 (113) 1,780 1,596


Donations - Other 5060-26-000 0 0 0 0 0 10,000 10,000

Donations - AGCEF 5060-26-063 10,542 10,542 21,083 21,083 0 126,500 105,417

Events 5120-26-158 0 0 0 0 0 750 750

Education Subsidy to Members 5140-26-136 0 2,250 0 4,500 (4,500) 27,000 27,000

Total Expenses 12,437 14,784 24,882 29,569 (4,686) 189,185 164,302

Net Income (12,437) (14,784) (24,882) (29,569) 4,686 (189,185) (164,302)



WORKFORCE DEVELOPMENT




Safety Promotion Items 4100-42-080 1,705 3,500 5,275 9,500 (4,225) 27,675 22,400

Safety Team Inspections 4100-42-218 2,565 2,300 4,185 4,725 (540) 20,925 16,740

Safety Training 4100-42-219 0 0 0 0 0 5,000 5,000

Safety Grants Income 4100-42-241 0 9,730 7,332 9,730 (2,398) 17,122 9,790

Field Day / Safety Team (Golf) 4150-42-176 0 0 0 0 0 21,850 21,850

Shipping - Safety Products 4900-42-195 50 60 148 200 (52) 800 652

Total Revenue 4,320 15,590 16,940 24,155 (7,215) 93,372 76,432

Salaries 5010-42-000 18,972 19,939 38,913 39,878 (966) 239,270 200,357

Payroll Taxes 5020-42-052 1,658 1,897 3,423 3,794 (371) 22,766 19,343

Health/Security/LTD 5020-42-070 3,360 3,122 6,687 6,244 443 37,463 30,776

Pension 5020-42-139 2,174 2,064 4,347 4,128 219 24,770 20,423


Auto/Travel Expense 5030-42-000 509 1,000 792 1,700 (908) 12,270 11,478

Corporate Travel 5030-42-178 39 305 639 610 29 4,760 4,121

Misc Meetings - Safety 5035-42-072 244 90 443 180 263 2,700 2,257

Consultants Fees 5040-42-144 0 0 0 0 0 3,000 3,000

Office Exp. 5050-42-000 44 100 161 200 (39) 1,200 1,039

Postage - Safety 5050-42-069 190 200 498 500 (2) 2,300 1,802


Membership Dues 5060-42-061 0 0 0 0 0 410 410

Cell Phone Exp.- Safety 5087-42-000 195 225 394 450 (56) 2,700 2,306

Safety Promotion 5120-42-080 425 0 8,257 11,534 (3,277) 22,352 14,095

Safety Grants Expense 5120-42-241 0 0 0 0 0 0 0

Hearing Conservation 5120-42-251 1,622 0 1,622 0 1,622 1,430 (192)

Safety Equipment 5120-42-350 0 0 0 200 (200) 200 200

Golf Tournment - Safety Team 5150-42-176 0 0 0 0 0 13,283 13,283

Insurance 5900-42-064 0 0 3,481 3,350 131 3,350 (131)

Depreciation 6950-42-000 757 820 1,515 1,640 (125) 9,841 8,326

Total Expenses 30,190 29,762 71,171 74,409 (3,238) 425,201 354,030

Net Income (25,870) (14,172) (54,231) (50,254) (3,977) (331,829) (277,598)



SAFETY




PY 18 - Retro Income 4500-27-221 0 0 0 0 0 0 0

PY 19 - Retro Income 4500-27-222 0 0 0 0 0 0 0

PY 20 - Retro Income 4500-27-223 0 0 0 0 0 0 0

PY 21 - Retro Revenue 4500-27-224 0 0 0 0 0 0 0

Retro Exp Gross/Reimbursement 4500-27-242 169,329 126,480 279,329 252,960 26,369 1,517,760 1,238,431

Total Revenue 169,329 126,480 279,329 252,960 26,369 1,742,760 1,463,431

Annual Meeting - Retro Breakfast 5502-27-221 TO 5502-27-230 0 0 0 0 0 0 0

Annual Meeting - AGC 5503-27-221 TO 5503-27-230 0 0 282 0 282 0 (282)

Association Dues - WSIA 5504-27-221 TO 5504-27-230 0 0 0 0 0 0 0

Auto / Travel Expense 5505-27-221 TO 5505-27-230253 0 328 0 328 0 (328)

Computer Equip Maint. - Upgrade 5506-27-221 TO 5506-27-230816 0 816 0 816 0 (816)

Ins - Liability / Directors & Officers (D&O) 5507-27-221 TO 5507-27-230 0 0 8,666 0 8,666 0 (8,666)

Misc. Expenses 5510-27-221 TO 5510-27-230 0 0 70 0 70 0 (70)

Misc. Meetings 5511-27-221 TO 5511-27-230 0 0 0 0 0 0 0

Office Equipment 5512-27-221 TO 5512-27-230314 0 594 0 594 0 (594)

Office Rent & Parkng 5513-27-221 TO 5513-27-2304,616 0 9,023 0 9,023 0 (9,023)

Office Supplies 5514-27-221 TO 5514-27-230370 0 658 0 658 0 (658)

Postage 5515-27-221 TO 5515-27-230 0 0 232 0 232 0 (232)

Salaries 5516-27-221 TO 5516-27-23047,359 0 94,718 0 94,718 0 (94,718)

Payroll Taxes & Benefits 5517-27-221 TO 5517-27-23016,609 0 33,545 0 33,545 0 (33,545)

Bonus (FICA & Taxes) 5518-27-221 TO 5518-27-230 0 0 0 0 0 0 0

Telephone / Cellular 5520-27-221 TO 5520-27-230609 0 1,227 0 1,227 0 (1,227)

Subtotal 70,945 0 150,160 0 150,160 0 (150,160)

RTW Classroom Income 5524-27-221 TO 5524-27-230 0 41,653 (875) 83,306 (84,181) 499,836 500,711

RTW Center 5525-27-221 TO 5525-27-23041,653 1,700 83,306 3,400 79,906 20,400 (62,906)

Classroom Yakima 5527-27-221 TO 5527-27-2301,700 0 3,400 0 3,400 0 (3,400)

Subtotal 43,353 43,353 85,831 86,706 (875) 520,236 434,405

NET EXPENSE 114,298 43,353 235,990 86,706 149,284 520,236 284,246

Clearing Account 5528-27-221 TO 5528-27-230(114,298) 0 (235,990) 0 (235,990) 0 235,990

TOTAL NET EXPENSE 0 43,353 (0) 86,706 (86,706) 520,236 520,236

Retro Exp Gross/Reimbursement 5500-27-242 169,329 83,127 279,329 166,254 113,075 997,524 718,195

NET OPR INCOME / (EXPENSE) 0 43,353 0 86,706 (86,706) 745,236 745,236



GROUP RETRO




Public Works Mtg Income 4100-30-072 0 0 8,710 7,000 1,710 7,000 (1,710)

Legislative Reimbursement 4100-30-147 0 0 0 0 0 17,500 17,500

Total Revenue 0 0 8,710 7,000 1,710 24,500 15,790

Salaries 5010-30-000 13,120 11,580 25,385 23,159 2,225 138,954 113,570

Contract Lobbyists / Temp Help 5010-30-051 0 12,166 6,666 24,332 (17,666) 116,000 109,334

Payroll Taxes 5020-30-052 1,027 1,025 2,381 2,050 331 12,301 9,921


Pension 5020-30-139 1,200 1,205 2,373 2,410 (37) 14,460 12,087


Auto Expense 5030-30-000 41 185 198 365 (167) 2,050 1,852

Corporate Travel 5030-30-178 0 0 495 800 (305) 4,000 3,505

Miscellaneous Meetings 5035-30-072 1,713 1,370 2,432 3,860 (1,428) 12,000 9,568

Professional Studies 5040-30-149 0 0 0 0 0 2,500 2,500

Legal Research & Representation 5040-30-161 0 500 0 500 (500) 3,500 3,500

Office Exp. 5050-30-000 589 600 877 1,200 (323) 7,125 6,248

Office Equipment Lease 5050-30-066 16 16 32 33 (1) 200 168

Office Equipment Maintenance 5050-30-067 145 55 157 110 47 1,250 1,093

Postage - GAC 5050-30-069 200 0 420 600 (180) 1,200 780

Contract Printing 5050-30-074 43 250 86 250 (164) 4,700 4,614

Membership Dues 5060-30-061 0 0 500 845 (345) 3,445 2,945

Subscriptions 5060-30-062 0 10 0 20 (20) 510 510

Donations 5060-30-063 0 50 0 50 (50) 600 600

LRC Membership 5060-30-160 0 0 0 0 0 2,500 2,500

Coalitions 5060-30-259 0 625 0 1,250 (1,250) 2,500 2,500

Rent - Leg. Office 5070-30-000 4,036 4,138 7,975 8,276 (301) 49,646 41,671

Internet Service Provider 5084-30-000 230 110 230 220 10 1,320 1,090

Telephone Exp.- Leg. 5086-30-000 425 400 298 750 (452) 4,000 3,702

Cell Phone Exp.- Leg. 5087-30-000 107 200 488 400 88 2,400 1,912

WebEx 5088-30-000 0 0 0 0 0 1,000 1,000

Public Works Promotion 5120-30-080 7,500 500 7,500 1,000 6,500 5,000 (2,500)

Public Works Committee 5120-30-153 0 0 6,351 7,000 (649) 7,000 649

State Facilities Committee 5120-30-155 0 0 0 0 0 0 0

LEARN 5130-30-083 0 0 0 0 0 1,000 1,000

Legislative Reporting Service 5130-30-147 1,200 0 1,264 1,770 (506) 3,870 2,606

Gov't Affairs Committee Exp. 5130-30-148 0 100 0 200 (200) 1,200 1,200

Insurance & Bonds 5900-30-064 0 0 1,447 1,550 (103) 1,550 103

Depreciation 6950-30-000 1,302 1,305 2,604 2,610 (6) 15,625 13,021

Total Expenses 34,424 37,995 73,030 88,820 (15,791) 453,506 380,477

Net Income (34,424) (37,995) (64,320) (81,820) 17,501 (429,006) (364,687)



GOVERNMENT AFFAIRS COUNCIL




Salaries 5010-31-000 2,526 2,411 4,938 4,822 116 28,932 23,994

Payroll Taxes 5020-31-052 212 218 443 436 7 2,618 2,175


Pension 5020-31-139 244 244 485 487 (3) 2,924 2,440


Auto Expense:BUILD 5030-31-000 0 0 0 0 0 200 200

Corporate Travel 5030-31-178 0 0 0 0 0 500 500

Misc. Meetings 5035-31-072 0 0 0 0 0 300 300

Office Exp. 5050-31-000 180 20 360 40 320 240 (120)

Indirect Overhead / Admin - Build Pac 5060-31-063 294 2,050 2,215 2,100 115 5,855 3,640

Total Expenses 3,758 5,257 9,040 8,514 526 47,452 38,412

Net Income (3,758) (5,257) (9,040) (8,514) (526) (47,452) (38,412)



BUILD-PAC




Misc. Meetings 4100-33-072 0 0 0 0 0 1,500 1,500

Total Revenue 0 0 0 0 0 1,500 1,500

Salaries 5010-33-000 250 250 500 500 0 3,000 2,500

Payroll Taxes 5020-33-052 22 23 44 46 (2) 277 233

Health/Security/LTD 5020-33-070 19 30 38 60 (22) 359 321

Pension 5020-33-139 18 27 35 54 (19) 326 291


Miscellaneous Meetings 5035-33-072 0 0 0 0 0 4,000 4,000

Total Expenses 308 330 617 660 (43) 8,167 7,549

Net Income (308) (330) (617) (660) 43 (6,667) (6,049)



AGC - FEDERAL FACILITIES




Misc Income/Labor Forms 4900-34-220 0 0 0 0 0 0 0

Total Revenue 0 0 0 0 0 0 0

Salaries 5010-34-000 14,930 13,962 28,892 27,925 967 167,549 138,657

Payroll Taxes 5020-34-052 1,274 1,286 2,617 2,573 45 15,437 12,820


Pension 5020-34-139 1,254 1,517 2,508 3,034 (526) 18,201 15,693


Auto Expense 5030-34-000 128 100 128 200 (72) 1,200 1,072

Legal 5040-34-060 0 600 245 1,200 (955) 7,200 6,955

Office Exp. 5050-34-000 51 40 76 80 (4) 480 404

Postage - Labor 5050-34-069 0 10 31 20 11 120 89

Cell Phone Exp.- Labor 5087-34-000 65 75 131 150 (19) 900 769

Labor Relations 5120-34-163 292 200 292 400 (108) 2,400 2,108

Trustee Expense 5120-34-166 0 0 550 0 550 1,550 1,000

Events - Turner School 5150-34-172 0 0 0 0 0 0 0

Depreciation 6950-34-000 32 32 64 64 0 386 322

Total Expenses 19,509 19,781 38,498 39,563 (1,065) 252,362 213,864

Net Income (19,509) (19,781) (38,498) (39,563) 1,065 (252,362) (213,864)



LABOR




Salaries 5010-40-000 856 856 1,712 1,712 0 10,272 8,560

Payroll Taxes 5020-40-052 73 80 151 161 (10) 965 814


Pension 5020-40-139 80 83 160 167 (7) 1,001 842


Auto Expense 5030-40-000 0 0 0 0 0 0 0

Corporate Travel 5030-40-178 0 200 0 200 (200) 525 525

Resource Materials 5050-40-074 0 0 0 0 0 300 300

Open Shop Dinner Meeting 5120-40-167 125 0 187 0 187 375 188

Open Shop Speaker Exp. 5120-40-168 0 0 0 50 (50) 200 200

Open Shop Meeting Costs 5120-40-169 0 100 0 100 (100) 200 200

Open Shop Seminars 5120-40-170 0 75 0 75 (75) 375 375

Top Student Awards 5120-40-171 0 0 0 0 0 575 575

Misc. Industry Support 5120-40-172 0 0 0 0 0 1,025 1,025

Total Expenses 1,250 1,516 2,441 2,707 (266) 18,083 15,642

Net Income (1,250) (1,516) (2,441) (2,707) 266 (18,083) (15,642)



OPEN SHOP




Members' Event Income 4100-12-175 0 0 0 0 0 4,500 4,500

District Mtgs - Seattle 4100-12-177 1,190 1,450 2,870 2,900 (30) 13,700 10,830

Golf - Seattle District 4150-12-176 500 0 500 0 500 44,000 43,500

Total Revenue 1,690 1,450 3,370 2,900 470 62,200 58,830

Salaries 5010-12-000 9,230 9,230 18,459 18,459 0 110,756 92,296

Payroll Taxes 5020-12-052 796 861 1,642 1,723 (81) 10,337 8,695

Health/Security/Ltd 5020-12-070 1,161 1,213 2,319 2,427 (108) 14,560 12,241

Pension 5020-12-139 949 995 1,898 1,989 (91) 11,935 10,037


Auto Expense 5030-12-000 71 125 151 250 (99) 1,500 1,349


Office Expense 5050-12-000 0 0 0 0 0 500 500

Postage - Seattle District 5050-12-069 0 0 1 0 1 400 399


Membership Dues 5060-12-061 0 0 0 0 0 4,000 4,000

Donations 5060-12-063 0 0 0 0 0 1,500 1,500

Cell Phone Exp.- Seattle 5087-12-000 65 75 131 150 (19) 900 769

Local Gov't Affairs 5130-12-174 0 250 226 250 (24) 6,000 5,774

Membership Promotion 5140-12-080 0 0 0 0 0 3,200 3,200

Holiday Open House 5140-12-175 0 0 0 0 0 10,000 10,000

Memb mtgs/ Seattle 5140-12-177 1,445 1,600 3,209 3,300 (91) 18,500 15,291

Member Events - Expense 5150-12-175 0 0 0 0 0 10,000 10,000

Golf Tournament - Seattle District 5150-12-176 65 0 65 0 65 44,000 43,935

Depreciation 6950-12-000 22 0 44 0 44 0 (44)

Total Expenses 13,839 14,349 28,278 28,548 (270) 258,506 230,228

Net Income (12,149) (12,899) (24,908) (25,648) 740 (196,306) (171,398)



SEATTLE DISTRICT




District Mtgs - Southern 4100-14-177 1,255 2,000 2,605 2,200 405 18,900 16,295

Golf - Southern District 4150-14-176 500 0 500 300 200 37,000 36,500

Total Revenue 1,755 2,000 3,105 2,500 605 55,900 52,795

Salaries 5010-14-000 11,955 11,954 23,909 23,908 1 143,450 119,541

Payroll Taxes 5020-14-052 1,023 1,141 2,116 2,281 (165) 13,688 11,572


Pension 5020-14-139 1,085 1,143 2,170 2,285 (115) 13,711 11,541


Auto Expense 5030-14-000 90 150 210 300 (90) 1,800 1,590

Corporate Travel 5030-14-178 0 45 0 90 (90) 540 540


Office Exp. 5050-14-000 0 200 340 400 (60) 2,400 2,060

Office Equipment Maintenance 5050-14-067 95 250 285 500 (215) 3,000 2,715

Postage - South District 5050-14-069 0 122 0 244 (244) 1,464 1,464

Office Equipment - Interest - FIFE 5050-14-290 19 61 143 124 19 650 507

Subscriptions 5060-14-062 0 0 0 0 0 150 150

Donations - Pierce County CC Day 5060-14-063 0 0 1,000 0 1,000 1,000 0

Telephone Exp.- Southern 5086-14-000 577 575 1,154 1,150 4 6,900 5,746

Cell Phone Exp.- Southern 5087-14-000 65 70 131 140 (9) 840 709

Memb Mtgs/ Southern 5140-14-177 0 2,500 0 3,200 (3,200) 28,100 28,100

Golf Tournament - Southern District 5150-14-176 0 0 0 0 0 36,000 36,000

Depreciation 6950-14-000 115 115 229 229 (0) 802 573

Total Expenses 17,275 20,362 36,087 38,925 (2,839) 291,891 255,804

Net Income (15,520) (18,362) (32,982) (36,425) 3,444 (235,991) (203,009)



SOUTHERN DISTRICT




Memb Mtgs/Northern District 4100-46-177 0 0 0 0 0 0 0

Membership Training 4100-46-189 0 0 0 0 0 0 0

Total Revenue 0 0 0 0 0 0 0

Salaries 5010-46-000 4,740 4,740 9,479 9,479 (0) 56,875 47,396

Payroll Taxes 5020-46-052 410 448 851 896 (46) 5,377 4,526

Health/Security/LTD 5020-46-070 672 710 1,345 1,419 (75) 8,516 7,171

Pension 5020-46-139 498 519 995 1,038 (42) 6,226 5,231


Auto Expense 5030-46-000 753 200 1,031 400 631 2,400 1,369

Corporate Travel 5030-46-178 0 0 0 0 0 600 600

Miscellaneous Meetings 5035-46-072 0 100 0 250 (250) 1,600 1,600

Office Exp. 5050-46-000 22 0 75 100 (25) 750 675

Postage - North District 5050-46-069 0 50 0 100 (100) 600 600

Membership Dues 5060-46-061 145 295 145 295 (150) 1,000 855

Subscriptions 5060-46-062 301 0 301 0 301 190 (111)

Rent - N. District 5070-46-000 750 750 1,500 1,500 0 9,000 7,500

Telephone Exp.- Northern 5086-46-000 0 0 0 10 (10) 50 50

Cell Phone Exp.- Northern 5087-46-000 65 80 131 160 (29) 960 829

Community Services/ Image Bldg 5120-46-185 0 0 0 0 0 1,500 1,500

Membership Training 5120-46-189 939 500 1,059 700 359 4,000 2,941

Local Gov't Affairs 5130-46-174 438 100 438 200 238 1,000 562

Membership Promotion 5140-46-080 9 0 9 100 (91) 1,000 991

Memb mtgs/ Northern 5140-46-177 814 600 1,938 1,200 738 7,200 5,263

Insurance & Bonds 5900-46-064 0 0 528 600 (72) 600 72

Total Expenses 10,556 9,091 19,826 18,447 1,378 114,217 94,392

Net Income (10,556) (9,091) (19,826) (18,447) (1,378) (114,217) (94,392)



NORTHERN DISTRICT




Memb Mtgs/Central Wa District 4100-48-177 0 0 0 0 0 1,000 1,000

Member Training 4100-48-189 0 0 0 0 0 600 600

Golf Tournament-Central WA 4150-48-081 500 0 500 0 500 16,000 15,500

Misc. Income 4900-48-194 0 0 0 0 0 0 0

Total Revenue 500 0 500 0 500 17,600 17,100

Salaries 5010-48-000 6,278 6,277 12,555 12,555 0 75,328 62,773

Payroll Taxes 5020-48-052 537 590 1,109 1,180 (71) 7,077 5,968

Health/Security/LTD 5020-48-070 848 887 1,695 1,774 (79) 10,641 8,947

Pension 5020-48-139 585 612 1,170 1,224 (53) 7,342 6,172


Auto Expense 5030-48-000 0 0 0 0 0 0 0

Corporate Travel 5030-48-178 202 250 501 250 251 2,070 1,569

Office Exp. 5050-48-000 87 100 147 200 (53) 1,425 1,278

Office Equipment Maintenance 5050-48-067 0 0 0 0 0 0 0

Postage - Central District 5050-48-069 53 25 53 25 28 225 172

Utilities 5050-48-186 0 0 0 0 0 0 0

Membership Dues 5060-48-061 605 0 980 300 680 2,750 1,770

Subscriptions 5060-48-062 0 0 0 50 (50) 200 200

Rent - C. District 5070-48-000 508 585 1,237 1,170 67 7,020 5,783

Internet Service Provider 5084-48-000 64 60 128 120 8 720 592

Telephone / Cable TV - Central 5086-48-000 64 61 128 122 6 732 604

Cell Phone Exp.- Central 5087-48-000 65 70 131 140 (9) 840 709

Member Training Meetings 5120-48-189 0 150 0 300 (300) 1,800 1,800

HR Roundtable 5120-48-266 7 0 7 200 (193) 650 643

Local Gov't Exp. 5130-48-174 7 200 41 200 (159) 1,000 959

Membership Promotion 5140-48-080 131 200 799 400 399 2,400 1,601

Memb mtgs/ Central WA 5140-48-177 223 150 223 650 (427) 3,300 3,077

Golf Tournament - Central District 5150-48-081 0 0 0 0 0 15,000 15,000

Insurance & Bonds 5900-48-064 0 0 581 650 (69) 650 69

Depreciation 6950-48-000 34 34 68 68 0 410 342

Total Expenses 10,298 10,251 21,553 21,577 (23) 147,581 126,028

Net Income (9,798) (10,251) (21,053) (21,577) 523 (129,981) (108,928)



CENTRAL DISTRICT




LT Investment - Dividend MM 4801-90-000 383 0 689 0 689 0 (689)

LT Investment - Bond Interest 4802-90-000 0 2,000 0 4,000 (4,000) 24,000 24,000

LT Inv Real Gain(Loss)-Basis 4850-90-000 (1,205) 0 (1,205) 0 (1,205) 0 1,205

LT Inv Unreal Gain(Loss)-Mrkt 4851-90-000 85,754 0 63,046 0 63,046 0 (63,046)

Total Revenue 84,932 2,000 62,530 4,000 58,530 24,000 (38,530)

Investment Consultant Fee 5800-90-000 0 0 2,886 0 2,886 12,000 9,114

Total Expenses 0 0 2,886 0 2,886 12,000 9,114

Net Income 84,932 2,000 59,644 4,000 55,644 12,000 (47,644)



NON-OPERATING


Audited Financial Statements, Other Financial Information (Audited)

and Nonaccounting Data (Unaudited)

December 31, 2014 and 2013

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ASSOCIATED GENERAL CONTRACTORS OF WASHINGTON Audited Financial Statements, Other Financial Information (Audited) and Nonaccounting Data (Unaudited) December 31, 2014 and 2013 INDEPENDENT AUDITOR’S REPORT .............................................................................. 1-2 AUDITED FINANCIAL STATEMENTS Statements of Financial Position (Balance Sheets) ........................................................... 3-4 Statements of Activities and Changes in Net Assets ............................................................5 Statements of Cash Flows ................................................................................................. 6-7 Notes to Financial Statements ......................................................................................... 8-18 OTHER FINANCIAL INFORMATION Chart I - Revenue ................................................................................................................19 Chart II - Functional Expenses ............................................................................................20 Chart III - Non-Facility Expenses .......................................................................................21 Chart IV - Expenses by Department, Net of Facility and RETRO Expenses .....................22 Graph I - Current and Debt/Equity Ratios ..........................................................................23 Graph II - Buildings and Marina Activities ........................................................................24 Graph III - Dues Revenue as a Percentage of Association Expenses .................................25 Graph IV - Six-Year Income and Cash/Investment Balances .............................................26 Graph V - Dues by Membership Type ................................................................................27 NONACCOUNTING DATA Graph A - Total Members ...................................................................................................28

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AUDITED FINANCIAL STATEMENTS

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The accompanying notes are an integral part of these financial statements.

-3-

ASSOCIATED GENERAL CONTRACTORS OF WASHINGTON STATEMENTS OF FINANCIAL POSITION (BALANCE SHEETS) December 31, 2014 and 2013 2014 2013

ASSETS CURRENT ASSETS Cash and cash equivalents $ 2,823,728 $ 2,598,966 Accounts receivable 145,406 99,046 Prepaid expenses 200,349 148,797 Total Current Assets 3,169,483 2,846,809 OTHER ASSETS Investments 2,236,072 2,111,608 Group retrospective rating plan assets 18,246,707 16,189,775 Prepaid commissions expense 82,109 52,864 Deposits 3,628 3,628 Total Other Assets 20,568,516 18,357,875 PROPERTY AND EQUIPMENT Land and improvements 2,376,137 2,376,137 Buildings 13,135,912 12,588,366 Leasehold improvements 1,290,404 1,379,853 Furniture and equipment 961,734 888,756 Automobiles 43,774 46,556 Marina 1,536,739 1,434,317 19,344,700 18,713,985 Less accumulated depreciation 10,511,650 10,405,032 Total Property and Equipment 8,833,050 8,308,953 Total Assets $ 32,571,049 $ 29,513,637

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2014 2013 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Current portion of long-term debt $ 78,779 $ 75,445 Current portion of leases payable 5,798 5,283 Current portion of grant payable 10,000 Accounts payable 399,370 403,545 Accrued expenses 86,208 84,407 Due to related entities 31,528 30,487 Deferred income 1,218,444 923,433 Total Current Liabilities 1,820,127 1,532,600 OTHER LIABILITIES Group retrospective rating plan liability 18,246,707 16,189,775 Tenant deposits 190,764 164,811 Total Other Liabilities 18,437,471 16,354,586 LONG-TERM DEBT Notes payable, less current portion 371,324 450,133 Leases payable, net of current portion 4,142 9,941 Total Long-Term Debt 375,466 460,074 Total Liabilities 20,633,064 18,347,260 NET ASSETS Unrestricted 9,437,985 9,066,377 Board-designated (Note 10) 2,500,000 2,100,000 Total Net Assets 11,937,985 11,166,377 Total Liabilities and Net Assets $ 32,571,049 $ 29,513,637

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ASSOCIATED GENERAL CONTRACTORS OF WASHINGTON STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS Years Ended December 31, 2014 and 2013 2014 2013 REVENUE AND SUPPORT Members’ dues $ 1,811,714 $ 1,751,728 Rents 3,738,495 3,591,123 Group retrospective rating plan 1,959,316 1,770,374 Other programs 285,079 335,158 Fundraising events 134,573 125,909 Investment income 112,790 350,501 Other income 11,432 21,098 Total Revenue and Support 8,053,399 7,945,891 EXPENSES Program expenses: Group retrospective rating plan 1,447,044 1,440,789 Other member services 659,218 696,931 Education and training 630,379 620,300 Government and industry relations 732,302 756,879 Districts 670,356 667,741 Total Program Expenses 4,139,299 4,182,640 Supporting expenses: Administrative and management 748,394 739,160 Fundraising events 104,702 99,174 Facility management 2,289,396 2,160,920 Total Supporting Expenses 3,142,492 2,999,254 Total Expenses 7,281,791 7,181,894 INCREASE IN NET ASSETS 771,608 763,997 NET ASSETS AT BEGINNING OF YEAR 11,166,377 10,402,380 NET ASSETS AT END OF YEAR $ 11,937,985 $ 11,166,377

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ASSOCIATED GENERAL CONTRACTORS OF WASHINGTON STATEMENTS OF CASH FLOWS Years Ended December 31, 2014 and 2013 2014 2013 CASH FLOWS FROM OPERATING ACTIVITIES Increase in net assets $ 771,608 $ 763,997 Adjustments to reconcile increase in net assets to net cash provided by operating activities: Unrealized (gain) loss on investments 27,025 (303,050) Depreciation 610,716 584,586 Loss on disposition of property and equipment 12,970 6,449 Changes in: Accounts receivable and deposits (46,360) 13,490 Prepaid expenses, including commissions (80,797) (34,882) Accounts payable (4,175) 5,233 Accrued expenses 1,801 (13,066) Grants payable (10,000) (10,000) Income tax payable (35,000) Due to related entities 1,041 (63) Deferred income and tenant deposits 320,964 (137,842) Net Cash Provided by Operating Activities 1,604,793 839,852 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property and equipment 2,000 Purchase of investments (916,729) (87,417) Proceeds from maturity of investments 765,240 119,111 Purchase of property and equipment (1,147,783) (478,106) Net Cash Used by Investing Activities (1,299,272) (444,412) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from refinance of long-term debt 6,475 Principal payments on long-term debt (75,475) (68,469) Principal payments on capital leases (5,284) (4,761) Net Cash Used by Financing Activities (80,759) (66,755) NET INCREASE IN CASH AND CASH EQUIVALENTS 224,762 328,685 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 2,598,966 2,270,281 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 2,823,728 $ 2,598,966

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ASSOCIATED GENERAL CONTRACTORS OF WASHINGTON STATEMENTS OF CASH FLOWS (Continued) Years Ended December 31, 2014 and 2013 2014 2013 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid for interest $ 20,142 $ 28,108 Cash paid for income taxes (see Note 1) $ 35,000

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ASSOCIATED GENERAL CONTRACTORS OF WASHINGTON NOTES TO FINANCIAL STATEMENTS December 31, 2014 and 2013

-8-

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Activities Associated General Contractors of Washington (the Association) is a not-for-profit organization formed to promote the commerce, safety, and education of its membership. The Association’s main office is located in Seattle, Washington, with branch offices throughout the State. Basis of Presentation The financial statements are presented in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) industry topic applicable to Not-for-Profit Entities. In accordance with the FASB ASC topic, the Association reports information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets.

Unrestricted Net Assets Unrestricted net assets are from revenue sources that do not contain time or purpose donor-imposed stipulations for their use. Board-designations for future spending reserves are also classified as unrestricted. Temporarily Restricted Net Assets Temporarily restricted net assets are from revenue sources which are subject to stipulations that may or will be met either by actions of the Association or the passage of time. The Association had no donor-restricted net assets at December 31, 2014 and 2013. Permanently Restricted Net Assets Permanently restricted net assets are from revenue sources which are subject to stipulations that they be maintained permanently by the Association. As of December 31, 2014 and 2013, the Association has no permanently restricted net assets.

Cash and Cash Equivalents For purposes of the statement of cash flows, the Association considers all financial instruments with an original maturity of three months at the date of acquisition or less to be cash equivalents. Accounts Receivable Accounts receivable are stated at the net realizable value. No allowance for doubtful accounts has been provided as management believes that essentially all receivables are collectible. If balances are uncollectible after management has made reasonable collection efforts, the amount is charged to bad debt expense in the period when the determination is made. Generally, the Association does not accrue interest charges on past due receivables.

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-9-

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenue Recognition Income from membership dues, rent and annual meeting reservations and sponsorships are recorded as deferred and recognized over the periods to which the dues, rents and reservations relate. Prepaid Commissions Lease commissions and other direct costs of obtaining tenant leases are capitalized and amortized in proportion to the rental income recognized on the related leases. Total prepaid commissions are $114,109 and $112,864 at December 31, 2014 and 2013, respectively. The current portion of $62,000 and $60,000 is included in prepaid expenses in the accompanying financial statements for the years then ended, respectively. Property and Equipment Property and equipment are stated at cost and are depreciated over the estimated useful lives of the assets using the straight-line and accelerated methods of depreciation. Leasehold improvement costs are depreciated on a straight-line basis over the life of the respective lease. Depreciation is provided over the following lives: Land and improvements 15 Buildings 15-39 Furniture and equipment 3-10 Automobiles 5-7 Marina 10-15 Depreciation expense for the years ended December 31, 2014 and 2013 was $610,716 and $584,586, respectively. Advertising The Association expenses advertising costs as they are incurred. Advertising costs totaled $67,254 and $87,522 for the years ended December 31, 2014 and 2013, respectively. Federal Income Taxes The Association is exempt from federal income taxes under Section 501(c)(6) of the Internal Revenue Code (IRC). The Association is required to pay federal income taxes on unrelated business income resulting from advertising revenues and debt-financed rental property. There was no federal income tax expense on unrelated business income for 2014 or 2013. As of December 31, 2014, the Association has approximately $202,000 in operating losses which begin to expire in 2021. A valuation allowance has been applied against the net operating loss (NOL) carryforward, which reduces the deferred income tax asset to zero. The valuation allowance is based on management's best estimate of the amount of the NOL that will be realized based on current and projected advertising and debt-financed rental income activities that comprise substantially all of the unrelated business income and NOL.

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Federal Income Taxes (Continued) The Association reports its federal income taxes using FASB ASC topic for Income Taxes. In evaluating the Association’s tax provisions and accruals, future taxable income and the reversal of temporary differences, interpretations and tax planning strategies are considered. The Association believes their estimates are appropriate based on current facts and circumstances. The Internal Revenue Service (IRS) generally has three years from the date the return is filed to examine and assess additional tax. The Association has filed its federal tax returns timely with the IRS. The Association’s accounting policy for tax-related penalties and interest is to classify those items as federal income tax penalty and interest expense, respectively. No amounts were incurred during 2014 and 2013 for interest and penalties. Concentration of Credit Risk At December 31, 2014 and 2013, there were cash and cash equivalents in excess of federally insured limits. The Association also has certain investments which are not federally insured. The Board has an investment policy that provides guidelines to minimize the Association’s risk of loss from such investments. Investment Policy The Association’s primary investment objective is the preservation of capital to ensure that sufficient funds are available to meet current and future operations, contingency and growth needs. The policy contains guidelines for the type of financial instrument in which Association funds may be invested. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities, at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Reclassifications Certain amounts for 2013 have been reclassified to conform to the 2014 presentation. The reclassifications have no effect on previously reported assets, liabilities, net assets or changes in net assets. Subsequent Events Management has reviewed subsequent events through , 2015, which is the date that the financial statements were available to be issued.

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NOTE 2 - GROUP RETROSPECTIVE RATING PROGRAM The Association sponsors a group of members that participates in a special program offered by the Washington State Department of Labor and Industries (the Department) for trade association members. Members that apply for participation and are accepted into the group combine their premiums and claim costs. The group premium is compared annually with developed claim costs by the Department and the group receives a refund or penalty based on actual experience. To date, there have been no penalties assessed. The group refunds are reduced by the costs of administering the group and then the Association receives a sponsorship fee equal to 5% of the net refund. The Association sponsorship fees, net of expenses, were $593,192 and $329,584 for 2014 and 2013, respectively. Refunds are not fully distributed to participating members until the final annual adjustment is completed by the Department. Refunds held in trust prior to distribution to participating members are reflected as Group retrospective rating plan assets on the balance sheets and were invested as follows at December 31: 2014 2013 Checking and savings accounts $ 586,712 $ 555,977 Money market funds 2,857,167 883,418 CDs and bankers acceptance investments 3,644,972 2,795,968 Fixed income funds 717,420 Government obligations 10,440,436 11,954,412 $ 18,246,707 $ 16,189,775 NOTE 3 - RENTAL INCOME The Association leases property to various tenants under terms of non-cancelable operating leases. Property leased includes buildings, docks and tenant improvements with a cost of $17,088,407 and a net book value $7,105,613 at December 31, 2014.

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NOTE 3 - RENTAL INCOME (Continued) Minimum future lease income is as follows: Years Ended December 31, 2015 $ 2,647,724 2016 2,189,139 2017 1,973,217 2018 1,545,348 2019 1,019,583 Thereafter 729,521 Total Minimum Future Lease Income $ 10,104,532 NOTE 4 - FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS The Association uses the FASB ASC topic for Fair Value Measurements, which establishes a fair value hierarchy for reporting that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels: Level 1 inputs consist of unadjusted quoted prices in active markets for identical assets and have the highest priority; Level 2 inputs consist of observable units other than quoted prices for identical assets; and Level 3 inputs have the lowest priority. There were no Level 2 or Level 3 inputs applied to the Association’s investments. The Association uses appropriate valuation techniques based on the available inputs to measure the fair value of its financial instruments. When available, the Association measures fair value using Level 1 inputs because they generally provide the most reliable evidence of fair value. Level 1 Fair Value Measurements The fair value of the investment account is based on quoted values of the securities held at year-end. These funds are classified within Level 1 of the valuation hierarchy. Fair value of assets measured on a recurring basis at December 31, 2014 is as follows: Active Markets Fair Market for Identical Value Assets (Level 1) Equity securities $ 1,055,203 $ 1,055,203 Government backed securities 959,208 959,208 Other equity securities 221,661 221,661 Total $ 2,236,072 $ 2,236,072

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NOTE 4 - FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Continued) Level 1 Fair Value Measurements (Continued) Fair value of assets measured on a recurring basis at December 31, 2013 is as follows: Active Markets Fair Market for Identical Value Assets (Level 1) Equity securities $ 1,166,151 $ 1,166,151 Government backed securities 714,763 714,763 Other equity securities 230,694 230,694 Total $ 2,111,608 $ 2,111,608 A reconciliation of the investment account at December 31 is as follows:

2014 2013 Beginning balance $ 2,111,608 $ 1,840,252 Transfer to general checking (150,000) Transfer from cash equivalent 11,674 70,855 Interest and dividends 39,206 28,444 Realized gain 111,771 29,525 Unrealized gain (loss) (27,025) 303,050 Investment fees (11,162) (10,518)

Ending Balance $ 2,236,072 $ 2,111,608

Financial Instruments The Association’s financial instruments at year end consist of cash and cash equivalents, accounts receivable and accounts payable. The recorded values of these instruments approximate the fair value based on their short-term nature. Financial instruments also include investments and long-term debt, whose recorded value approximates fair value, as the unrealized gain (loss) or accrued interest approximates the adjustment necessary to reflect the market value.

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NOTE 5 - INVESTMENT INCOME AND GAINS Investment income and gains from these investments is summarized as follows: 2014 2013 Interest and dividends $ 39,206 $ 28,444 Net realized gain 111,771 29,525 Net unrealized gain (27,025) 303,050 Investment fees (11,162) (10,518) Total $ 112,790 $ 350,501 NOTE 6 - LEASE COMMITMENTS Operating Leases The Association leases aquatic lands, office space and equipment under various operating leases with terms ending 2015 through 2018. The related future minimum lease payments are as follows: Years Ended December 31, 2015 $ 92,000 2016 52,000 2017 30,176 Total Minimum Future Lease Payments $ 174,176 Rent expense incurred under these leases during the years ended December 31, 2014 and 2013 was $113,914 and $140,988, respectively. Capital Leases The Association entered into a new lease agreement during 2011 for a copier with monthly payments approximating $410, including interest at 19.11%, commencing January 2011 through April 2016. The capitalized cost is $21,729 and accumulated amortization is $4,139 and $12,072 at December 31, 2014 and 2013, respectively.

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NOTE 6 - LEASE COMMITMENTS (Continued) The Association entered into a new lease agreement during 2012 for a copier with monthly payments approximating $150, including interest at 20.48%, commencing May 2012 through August 2017. The capitalized cost is $5,758 and accumulated amortization is $1,097 and $1,736 at December 31, 2014 and 2013, respectively. The related future minimum lease payments are as follows: Years Ended December 31, 2015 $ 6,720 2016 3,030 2017 1,200 10,950 Less amount representing interest (1,428) Total Minimum Future Lease Payments $ 9,522 The current portion of capital leases payable is $5,798 and $5,283 at December 31, 2014 and 2013, net of interest portion, respectively. NOTE 7 - EMPLOYEE BENEFIT PLANS The Association offers eligible employees a defined contribution and profit sharing plan. The benefits are offered through participation in the Northwest AGC Chapters Retirement Plan document, which operates as a multiple employer pension plan. The principal plan sponsor is the Oregon-Columbia Chapter AGC. As an adopting employer, the Association is a plan co-sponsor and relies upon the principal plan sponsor for pension plan administration and asset oversight. Eligible employees are those individuals who have worked 1,000 hours and have also attained age 18. The Association matches employee contributions with a 50% contribution, up to 2.5% of the employee’s eligible wages. The Association may also elect to make a discretionary contribution to the Profit Sharing Plan. Association contributions charged to expense under this plan totals $191,145 and $181,442 for the years ended December 31, 2014 and 2013, respectively. The principal plan sponsor allocates a portion of plan administrative costs to AGC, who pays substantially all allocated costs attributable to Association employees.

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NOTE 8 - LONG-TERM DEBT Long-term debt at December 31 is summarized as follows: 2014 2013

Note payable to Union Bank, 3.91% per annum, monthly installments of $7,919 including interest, due April 2020. Secured by real property. $ 450,103 $ 525,578

Less current portion of long-term debt (78,779) (75,445) Total Long-term Debt $ 371,324 $ 450,133 Annual maturities of long-term debt are as follows: December 31, 2015 $ 78,779 2016 81,914 2017 85,220 2018 88,618 2019 92,151 Thereafter 23,421 Total $ 450,103 At December 31, 2014 and 2013, the Association was in compliance with its loan covenants. The interest paid on the above note was $19,556 and $27,239 for the years ended December 31, 2014 and 2013, respectively. NOTE 9 - GRANT PAYABLE During the year ended December 31, 2010, the Association pledged $50,000 to Central Washington University. Under generally accepted accounting principles, grants which are payable over more than one year are recognized at fair value using present value methods at the time the grants are made. The grant was paid in-full during 2014 and no additional long-term grants were promised to others during 2014.

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NOTE 9 - GRANT PAYABLE (Continued) Management believes that the amount recorded in the accompanying financial statements approximates the fair value of grants payable at December 31, 2013. 2013

Grant payable to Central Washington University, annual payments of $10,000, paid in-full during 2014 $ 10,000

Less current portion of grant payable (10,000)

Total Long-term Grant Payable $

Grant payable at December 31, 2013 is classified as current in the accompanying financial statements. NOTE 10 - BOARD-DESIGNATED NET ASSETS The board has a policy, which provides for reserve funds to be set aside as board-designated, unrestricted net assets in the following broad categories:

Operating Reserve: to protect against unforeseen economic emergencies with respect to Association operations;

Plant and Equipment Reserve: to provide adequate resources to maintain real property assets and replace and maintain essential equipment;

Special Project Reserve: to provide financial support for special issues that are beyond the scope of the annual operating budget.

Annually, the minimum reserve investment account balance will be the greater of thirty percent (30%) of AGC’s annual budget revenues or the annual earthquake insurance deductible. The reserve funds are adjusted amongst the categories based upon the expected future needs, and upon certain reserve targets contained within the policy. When an authorized expenditure is drawn against one of the funds, the policy requires that an approved plan must be in place to replenish the amount expended from the fund. The board designated net assets consist of the following at December 31, 2014 and 2013: 2014 2013 Operating reserve $ 420,000 $ 410,000 Plant and equipment reserve 1,980,000 1,590,000 Special project reserve 100,000 100,000 Total Board-Designated Net Assets $ 2,500,000 $ 2,100,000

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NOTE 11 - PARTNERSHIP WITH OTHER ORGANIZATION The AGC Education Foundation (the Foundation) was formed by current and former members of AGC of Washington and the two organizations maintain a close working relationship. However, the Foundation operates as a separate not-for-profit organization with its own board of directors and employees. The Foundation is the primary resource for education programs for AGC. The Association provides a $25 continuing education scholarship to its members for attending a class instructed by AGC Education Foundation. The education assistance paid on behalf of members was $26,700 and $19,875 for the years ended December 31, 2014 and 2013, respectively. The Association provides the Foundation with cash contributions which totaled $126,500 for the years ended December 31, 2014 and 2013. The Association provides space in its Seattle office building to the Foundation at no charge. The value of this space for 2014 and 2013 approximates $21,000 to $38,000 and has not been included in the accompanying financial statements based on the FASB ASC topic for not-for-profit entities. The Association also provides the Foundation with administrative and accounting support and services and allocates a portion of staff salaries to education training. The value of those services was $27,163 and $27,626 for the years ended December 31, 2014 and 2013, respectively.

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OTHER FINANCIAL INFORMATION (AUDITED)

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Associated General Contractors of WashingtonChart I - Revenue

23%

28%

3%

46%

Revenue - 2014

Member Dues Programs & Field Days Investments & Other (Calculated) Rents

22%

28%

5%

45%

Revenue - 2013

Member Dues Programs & Field Days Investments & Other (Calculated) Rents

-19-

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Associated General Contractors of WashingtonChart II - Functional Expenses

57%

12%

31%

Functional Expenses - 2014

Member Programs Other supporting services Facility Management

60%

10%

30%

Functional Expenses - 2013

Member Programs Other supporting services Facility Management

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Associated General Contractors of WashingtonChart III - Non-Facility Expenses

83%

17%

Non-Facility Expenses - 2014

Member Programs Administration & Management

83%

17%

Non-Facility Expenses - 2013

Member Programs Administration & Management

-21-

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Board of Trustees1.8%

Tech2.7%

Administration9.3%

Accounting6.8%

Communications6.0%

Meetings & Events1.2%

Special Events4.8%

Member Service5.6%

FLF1.2%

Workforce Development (AGCEF )

5.0%

Safety11.7%

GAC14.0%

Federal Facilities0.1%

Labor6.0%

Open Shop0.5%

Seattle Dist.6.3%

Southern Dist.7.7%

Northern Dist.3.2%

Central Dist.4.0%

Associated General Contractors of WashingtonChart IV ‐ Expenses by Department, Net of Facility

and RETRO Expenses

2014

2014 Association Expense = $3,545,350

Board $65KTechnology $114KAdmin $329KAccting $240KComm $213KMeet ‐ Event $44KSp Events $172KMbr Service $200KFLF $41KAGCEF $227K

Safety $416KGAC $496KFed Fac $5K Labor $213KOpen Shop $18KSea. Dist $223KS. Dist $272K N. Dist $115KC. Dist $142K

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Associated General Contractors of WashingtonGraph I - Current and Debt/Equity Ratios

-23-

2.19 2.152.05

2.57

3.24

2.97

0.29 0.27 0.28 0.23 0.19 0.20

-0.25

0.25

0.75

1.25

1.75

2.25

2.75

3.25

2009 2010 2011 2012 2013 2014

Current Ratio = Current Assets + Investments / Current Liabilities Debt to Equity = % of Debt to Total Equity

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Associated General Contractors of WashingtonGraph II - Buildings and Marina Activities

-24-

$3,723,524

$3,523,174 $3,533,876 $3,660,132

$3,591,123 $3,738,495

$1,529,442

$1,289,981 $1,307,406 $1,439,099 $1,430,203 $1,449,099

$2,322,212

$701,576

$1,022,851

$570,537

$391,508

$1,009,759

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

2009 2010 2011 2012 2013 2014

Rents Net income (for rental activity) Buildings and Marina Capitalized Expenditures

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Associated General Contractors of WashingtonGraph III - Dues Revenue as a Percentage of Association Expenses

-25-

34.5% 34.3% 34.7%

31.1%

34.9%36.3%

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

2009 2010 2011 2012 2013 2014

Ave

rage

Ret

urn

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Associated General Contractors of WashingtonGraph IV - Six-Year Income and Cash/Investment Balances

-26-

2009 2010 2011 2012 2013 2014

Cash & Investments $3,885,015 $3,795,900 $3,755,497 $4,110,533 $4,710,574 $5,059,800

Operating Income Before Tax & Other $55,019 $28,388 $289,513 $513,899 $460,947 $798,633

Total Income After Tax & Other $261,602 $185,615 $219,931 $641,046 $763,997 $771,608

$3,885,015 $3,795,900 $3,755,497

$4,110,533

$4,710,574

$5,059,800

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

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lars

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Associated General Contractors of WashingtonGraph V - Dues by Membership Type

-27-

2009 2010 2011 2012 2013 2014

Generals $1,462,625 $1,133,660 $1,095,611 $1,071,191 $1,203,477 $1,245,285

Subs $442,813 $405,546 $378,846 $356,717 $367,983 $373,610

Associates $190,713 $181,638 $182,946 $173,328 $173,593 $186,319

Retro & Other $5,850 $6,350 $6,250 $6,175 $6,675 $6,500

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

Due

s R

even

ue GeneralsSubsAssociatesRetro & Other

Dra

ft

NONACCOUNTING DATA (UNAUDITED)

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Associated General Contractors of WashingtonGraph A - Total Members

-28-

158167

171 169 172

188

152 149 148153 155

176

236

225 223 222217

237

5661 63 62

6661

0

50

100

150

200

250

2009 2010 2011 2012 2013 2014

Mem

bers

Generals Subs Associates RETRO only

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AGC OF WASHINGTON BOARD OF TRUSTEES MEETING April 20, …

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