The Regular meeting scheduled for 2019-10-08 at Pier 69

Transcript

The Regular meeting scheduled for 2019-10-08 at Pier 69

Whoa, whoa, whoa, whoa, whoa
I believe this is why I say everybody focuses on the issue
Just a
I am so sorry
I will start that again
So we are now at the point of approving the agenda in the order of the agenda, the motions are to add or arrange the orders of the day or request to remove items from the consent calendar
Please say so at this time
I do have one item
Is there any others? All right, so I move I move that we add a presentation on the maritime economic development divisions, capital budgets to the agenda so that the order of the presentations is 9B operating budgets, nine capital budgets would be added and at last nine, a financial policy would fail, would follow 9B and then the capital budget presentation
All right, so I think you have to make the motion, and I just that's the way it should be on the table
All right
So unless there's any any opposition all so moved and we proceed from here, at this point we get the executive directives report
MR Metruck Commissioner, since we have a long day of meetings this afternoon following this morning, I'm I'm providing just one announcement for today
Commissioners last week, the ports of Seattle and Tacoma, the seaport alliance, along with partners from Washington State Ferries, Noah and the Puget Sound Partnership, sponsored an underwater noise reduction workshop
Representatives from the tribes, the Commission on Non-governmental Organizations, Researchers, state and federal agencies and the maritime industry attended the workshop
The workshop marks a key step in implementing the Orca Task Force Recommendation Number 22, which specifies that Washington state should establish a program to reduce underwater noise from vessels, underwater noise from vessels known to be harmful to the southern resident orcas because it masks their ability to use sonar to hunt and to communicate
We're proud to have taken the initiative to coordinate this effort
That took a lot of planning to put this
But this workshop together
Overall, the workshop was a tremendous success
Participants remarked about the sense of a shared response, a bit of responsibility and collaborative atmosphere
During the workshop, the port and its co convenors are working together to plan the next steps
And I really would like to appreciate Commissioner Filmand for his leadership in this organizing workshop and executing this workshop
Thank you
And as well as to the staff who know, you only notice things that when they go wrong, it went flawlessly
So I obviously meant a lot of preparation and recognizing Commissioner Corkins for being there as well
I don't know if any other commissioners showed up during the course of the day regarding today's commission meeting
There are several items I'd like to highlight
Number one related to my earlier announcement item 8c relates to our maritime stormwater utility
This request as part of our effort to enhance the water quality of Puget Sound
In the second item commissioners, you know that our airport staff is constantly striving to deliver positive customer service for travelers, and I heard that is a major theme in this morning's discussion
To that end, there are two items on your agenda in this regard
Item 8 A is a project that takes us one step closer to alleviating some traffic congestion at the airport
May B is a request to fund infrastructure to improve our ability to meet the waste and recycle needs of airport operations and travelers
And with that commissioners, this concludes my remarks
Thank you
Executive metric
I think now we go to a part of the agenda which we accept public testimony
I will
The commission will now accept that testimony at any written materials can be given to the clerk for inclusion in the meeting
If you wish to speak
Please sign in
Identify the specific item
You want to address the commission time
At this point, we'll be two minutes and we have people already signed up
If nobody has any bail, still wants to sign up, please do so at this time
And I will start with John Lee
Lee Leahy
You don't know Jan by Leahy
I'm sorry
Sorry I changed your change your sex on that by accident
Sorry
Good afternoon
I'm Jan Van Light
I'm a volunteer with 350 Seattle, as well as my church's Sacred Earth Ministry
And I'm here today to follow up in discussion about the crew's expansion plans that the port has
I'm here with my colleague Stacey from 350 Seattle
We had a very fruitful meeting with Stephanie Jones, Stebbins and the leaders in the Environment and Sustainability Group last month and really appreciate all the efforts that are being taken to have the port be very environmentally progressive port in North America
However, it became clear that there is no plan to address the scope three indirect greenhouse gas emissions where the target that the port has is to reduce them by 50 percent in 10 years
And there is no clear plan that that will happen
And expanding cruise actually obviously makes it worse
So I'm here representing 350 Seattle and asking you to consider that cruises emit three to four times the greenhouse gases of flying on a per passenger mile
The cruise ships will have a 30 year life cycle
It is a serious thing to add more cruises to our Salish Sea with orca whales
So our request and Stacy will speak more to that is that you strengthen your RFP to be sure that we meet the goals for our environment
And if we're not able to, we really need to think about putting a pause and the people of Seattle
I would expect we want you to do that and to be good stewards, given that 70 percent of them voted for Initiative 16 31
So thank you and appreciate your efforts to make this a cleaner and cleaner world in the middle of a climate crisis
No
My name is Stacy Oak's, I'm an organizer with 350 Seattle and just a can continue at Jan Vonleh
He was saying these are some of the points that we would like to see included in an RFP in order to really be able to say that we are going to be one of the greenest ports and be really jumping ahead of the things we need to do in criminal and civil liability disclosure
All entities submitting proposals must disclose any and all violations of criminal, federal, state and local laws and regulations occurring within the last 10 years
Or entities submitting proposals must disclose any and all civil liabilities and lawsuits of parties involved on environmental impact disclosure
Most cruise ships have an official life span of 30 years
All entities submitting proposals must present a comprehensive lifecycle assessment of the volume and types of fuel used in emissions and pollution to be emitted by the type of cruise ships expected to use Terminal 46 for a period of 30 years
All entities submitting proposals must conduct an inventory of current and projected emissions based on the proposed changes at Terminal 5 and Terminal 46
Using the EPA as current methodologies and best practices for estimating greenhouse gas emissions, all entities emitting proposals must conduct air dispersion models for the terminal 46
All entities submitting proposals must disclose their estimate of the total amount of their discharges for the year 2016, 17 and 18, including sewage, greywater, whaley, bilge water and solid waste and hazardous waste
All entities submitting proposals must summarize the EPA as findings of fault in the area of human rights commitment
The principles of free, prior and informed consent requiring gauging and government to government consultation with regional tribes, including obtaining free prior and informed consent from the due omeish people
Despite their lack of federal recognition on racial and economic justice
Commitment requiring state preference for progressive hiring
Employment practices i.e
goals for local hires
New apprenticeship opportunities and positions for groups underrepresented in the trades
Unionized contractors
And I'll go ahead and submit these papers
I have enough for each of you to drop off
If you'd look those over, we would really appreciate it
Thank you
One moment when I'm very, very sensitive to when public comment
But Pete, I think this is a question for legal counsel, which is which we could take up later, given where we are in the RFP cycle
We have had the Coppock capability to ask follow up questions
I think it would help the commission once we have this in the record to understand where we are in the cycle
I know there's several phases of questions to the petitioners
I'd like us to make sure we have the ability consideration to ask some additional questions
And if there is a fully, I guess, done that these questions could be posed in the scoping comments, that would then require our reply
We'll work on it
Yes
Great
Excellent
Moving on, we've got Carlo netsky, followed by Kimiko Jones
I first want to apologize for my unprofessional appearance
I was notified of this meeting last minute
You look transparent
Worry about him
I'm a resident of the Inner Bay, tiny Cavin village
The port owns the property
I think it's pretty much known that Lihi
Shelters, the hadone housed
That's given, but that's just the tip of the iceberg
I work for the Seattle Conservation Corps
Between my case managers there and coordination with my case managers at the village, I've been able to get treatment and help that I've needed
I've got a job
I have a Seattle paycheck
I don't eat
I think when people think of the how the houseless, they think we need to help them
And I mean, that's part of it
But the big part of it also is that you guys import your cruise ships are right there from a commerce point of view
Tourist, you know, don't want to see tents
When they get off the cruise ship
LIHI takes 60 tents off the street
Would that one village so we're not naive, we know the value of the land monetarily
But I think you're getting value of the land by how it's being used to sow
Yeah
And then, you know, whatever the cost of housing the homeless is, I guarantee you, is cheaper than lawyers in the court system
And if you're under a bridge, you're gonna meet a cop
Ask any cop in this room
So that's my piece
But I appreciate your time and thank you and I really hope you let ussery sign the lease
Thank you, Carla
Kimiko followed by
Oh, excuse me
Kyle monsey go
Like Meka
First of all, I would like to thank the port for allowing innervate to utilize the property
Also thank the volunteers and the donors of our community
I'm a 42 year old grandmother and I'm experiencing homelessness for the first time
I lost my apartment due to an electrical fire and a couple of weeks later lost my 3 month old granddaughter
At that time, I was just unable mentally to move forward
After almost two years of living in different Wal-Mart parking lots and
Dispersement camps
I decided to put my pride aside and ask for help and then met
You know, in my mind, the homeless being homeless
It was just something that I was just unable to accept
As for myself, you know, so as they're called and as tiny cabins, did they have any openings? And they did
And
Since being there, I've been
Allowed to get all of the get help for my anxiety
Get back on my blood pressure medicine and yoga for the first time, the healing of yoga
Drum circle
I'm just very appreciative
You know, no one looked down on me
Everyone make me feel welcoming, welcoming and just the community itself
The gardening going on, the life inside that
That is going on
There's been this allowing other people to help themselves to ask for help and not feel less than
I think that was the most important thing
So I just wanted to take the time
Thank you
Thank you so much
Thank you
Can we can thank you for sharing that
Kyle Fire, followed by Janis Trevin
Afternoon
My name is Carl Monsanto
I'm the site coordinator at Inter Bay Village with LIHI
And I just wanted to discuss a little bit about the the village
It is a self-managed village and
Just want to talk about the self-management process a little bit and what we've been doing with that inner babe has been parts of participating with other self-manage villages and King County, such as the Georgetown Village Camp Second Chance and
Oh, TheLate a village
We have spent many hours brainstorming the imperatives to what makes self-management works in the tiny cabin program
And we're even putting together a training module for other villages interested in the program and the process of self-management
We've had many reports are a few representatives come from out-of-state interested in self management process, from like Denver, Oakland and even Hawaii
I've even talked with a church organization from Georgia, even interested in the self-management process in tiny cabins, village leadership and hours of service is the main key to success in making the process work
In my opinion, every resident does two securities a week at three hours a shift to watch the village and do daily chores to keep the village and neighborhood clean
The residents hold each other accountable per code, per the code of conduct
Any violations are documented and turned into leadership
We have a huge support and interest from the surrounding community and have mini village tours and have many donators come to innovate to help with residents and talk with them
The village even has a lady who comes every week to do a healing drum circle and yoga
The self-management inside the village brings everyone together closer
We have a village meeting once a week and discuss any concerns in the village
And do we do positive praises to residents and re-elect village leaders to make it work? I just want to thank you guys
Thank you, Kyle
And then Justin Pricella
Hi, Janice
Hi, I'm Janice Draven
I have served represented Magnolia Community Council on the Community Advisory Committee for First Tent City when it was over by the UFC on Dreyfuss
And now for the entire Bay Village at the base of the Magnolia Bridge on Port Property I
When it was first set up, there was a one year lease with a one year renewal over by indar Bay, and the city was obligated to move them
There were several people, Sibby DeForest, the Rev
Marilyn Cornwell and myself, who I later learned were referred to by some of the residents as owls
I learned that that meant old white ladies lobbied very hard to find a place in Magnolia, to keep them nearby, to keep leveraging the goodwill that's been built up in our community and miracle of miracles
The port offered this about a property for which we owls are very, very grateful to keep them nearby, and seeing the village continue on its trajectory has been extraordinary
I thank you for what you have done
Encourage you to renew the lease
Thank you
Is it? I said, Dad
Excuse me, Justin
Or is it Joseph? It's Joseph
Sorry
It's a little difficult to read here
And then followed by Aaron Moth's
Herself, I'd like to thank the commission for allowing us to speak
My name is Joseph Purcell
I'm a resident of Seattle
I'm a voter in Seattle
I'm also a past resident of the village and also a past resident of the tent city when it was on Davis
I helped in facilitating and moving the village to the new location
We were very pleased to get some more centrally located
Place to be in order to help more people in the long run
And I lived at that village for 18 months
I had been in housing for the past six months
I'm very thankful to be in housing, but I'm even more thankful to have had a safe place to be while being homeless on the streets of Seattle, which is a very crime ridden city
And I was worried about those kind of issues and problems, Bob, going through a tent city in a village
But when I found out it was self-manage and that I could have some control over my own destiny
I've shined and I enjoyed living there
I enjoyed participating and involving the community, involving the people that live there to participate, to get a handle on their own situation, to regain control of their lives in order to get housing, get a job, gets mental health, get physical health, get hospital help, whatever help that they were necessarily needing
And everybody has a different story and a different reason for being homeless
So we can't just blame one specific thing that causes it
We have to realize that we are the compassion that we seek
And by the city of Seattle, the port of Seattle and all the other entities in the city of Seattle, they have large amounts of compassion to help human beings that have real issues and problems and needs
The Port Authority, by allowing the village to be there, has made it safer for people to live in Seattle
That made it safer for people to be homeless in Seattle
We would just ask that you would consider this and renew the lease
Thank you very much for your time
Thank you, Joseph
Aaron months and then anybody else signed up
And then Alex Zimmermann
Be last
Hi
Thank you for having me
My name is Aaron Monts
I'm the pastor at United Church in Queen Anne
We have been serving the safe harbor, tiny village for the past two years, providing meals every Thursday night
We show up with a home cooked meal and there is a group of people that serve the meal every single week
We've been doing this since they were at the Dreyfuss location in the tents
And to see the drastic change in living situation and living environment over the past two years has been absolutely remarkable
What the port has been able to do and facilitate by providing this land has been tremendous for the residents and for the overall experience of the neighborhood in general
So thank you for that
Thank you for taking this chance and taking this risk and making that happen
I want to ask that you would not only extend it, but extend it for five years with the potential for another five year lease
Beyond that, I think that it would be a tremendous benefit not only for the residents, but for the neighborhood as well
We have experienced some tremendous relationships with the people and have seen so many people actually move their way into housing
Through this, we know this is not a permanent solution, but it is a temporary it is a beautiful temporary solution for the people that live there and their lives
They get to find some stability as a result
So thank you for what you have done
And we ask that you continue to do it
So thank you
Thank you, Aaron
MR Me, quickly, I just want to thank the folks that have come out and told us about some Botha's success this year as well as the year before
And
But the point that you just raised about the transition to permanent housing, obviously some small housing, tiny houses are not the solution
But if they are documented to provide that pathway forward, those data would be very helpful to justify the ongoing effort
So I hope you're keeping track
Thank you
All right
Alex, it turns out we have one more Danny Armory
Excuse me, among Alex
Come on up
Make sure
I'm not less than Rono
Oh
Goodish timeor
All right
I'll tell you when you're done
I'll tell you I'm done
Go ahead, Kyle
Might do it
He called me a Nazi
Damn a pig from Animal Farm, fascist strapper, anti-Semite and killer
My name Alex Zimmerman and I'm president of Stand Up America
I can't Race Solutions is B.S
for many years and I try to understand how is this possible? You know, it has been very simple point for the last 20 years
See, I thought controlled by one party, a Democratic Party, a pure mafia, a Barndioota in people come and complain and complain and complain is go votes is don't go better
Why? It's very simple
Right now we have a five brown court
So who control and see
Yet for the last few years, it makes situation absolutely a bit weird
I would question about this
So how we can change this? How 700000 idiot includes this
People could sit in this room
Always go in
Vote for Democrat
This don't have sense
Then situation got worse and worse for all 700000 people
And Mealer, 2 million people
And right now, gorgeous state Washington
Why is this idiot always elect same people again and again? Can you explain to me how is this possible, a Democrat controlling this city and state and senator for twenty five years? Can you explain to me what the Soviet Union
Come on, you servile politburo sometimes don't stay in for so long
So why is this freakin idiot come to see us complain, complain and nothing change every year? What again, for a Democrat, for this croque for this mafia forces bandits who steal and money from us
So I spoke right now to everybody who listen to me
Stand up America
Thankyouverymuch Janae
Is standing still in the room
OK, great
Come on up
And I just want to note that the handout that people gave that I didn't have a chance to read
Points out that 62 of the residents have transitioned
So obviously you are keeping close count
Thank you for that
But you see, I politely they all were like, we can do that
Hi, Danny
Welcome
Thank you
Good morning
I would like to thank the court and the city of Seattle and Lee
Would you move a little closer to the microphone then? You hear me now? That's okay
I want to thank everyone
I am probably the oldest age wise member there at in a bay village, and I came in March
I will be leaving soon by the end of November
However, it was a place I needed to be at the time
There were things going on in my life
I made a financial error
I'd probably make the same choice again with more insight
However, when I needed a place to be, they were there
And I appreciate that
And I'm grateful for it
Has it been all smooth sailing since then? No, it hasn't
But everything is a process
And I've watched
I came when it was a tent
Now it's in a cabin
And that transition period
It's a work in progress
But I've watched people come and I've watched people go
And it does give you a sense of stability
It gives you a chance to stand up again
The ground isn't shaking under you
You're not afraid every night
So it does work
And I would like to see it remain there for those who need that particular stability under their feet
Thank you, Danny
All right
With that public comment is closed and we're going to move on to items on the unanimous consent calendar
MR Gregoire, I was gonna move adoption of the names, 10 calendar grades
That's item 6 8 through 6 F moves
And second, in all those in favour please indicate by saying I I
All those opposed nay i's have it
Terrific
So now we will move on to our special orders items set in a authorization for the executive director to renew the lease agreement for one year with the city of Seattle for continued use of the Sebo to site sixty no one Fifteenth Avenue, West Seattle for a temporary homeless encampment
Commissioners were pleased to assist the city in the community with the lease of this property that we heard so much about earlier
We have reached agreement with the city and seek your approval to extend the lease agreement for one year
Presenters are Broncho Valdés, Mengel older or brooding and director external affairs with the City of Seattle in Sharon Lee, Executive Director, Low Income Housing Institute
Good afternoon, commissioners and executive director Steve Metric
I'm Veronica Valdez, commission specialist at the Port of Seattle Commissioners
Today, you will receive a briefing on the Inner Bay's Safe Harbour Village, located on port property at Sloboda, which is north of the Magnolia Bridge, west of 15th Avenue and adjacent to the National Guard Armory
Before I turn it over to to our speakers, I'd like to provide some background in November 26 17
The commission authorized a lease with the city of Seattle for a portion of the support of property for the Inner Bay Safe Harbor Village
The current lease is set to expire this November
On November 16
Twenty nineteen
In August of this year, the port commission received a request from the city of Seattle to renew the lease agreement of this abode, a property through 2020 for the continued operations of the village
Today, we are requesting commission authorization for the executive director to renew the lease agreement for one year with the city of Seattle for continued use of the property for this about a village
I would like to acknowledge the port staff, our friends at the city of Seattle in low income housing institute, the Community Advisory Committee members, the residents of Inner Bay, Safe Harbor Village, the many faith based organizations and community members who have been instrumental in making this village a success
I'll now turn it over to my old birding
There we go
Good afternoon, commissioners
And I don't know if I can run the slides or
Doesn't look like it's up
So thank you for having us here today
Thank you to the port commissioners for all your support and partnering with the city of Seattle as we address this unsheltered crisis that we face
Your support over the last two years has been invaluable and instrumental in helping us to better shelter people who are living on our streets and has led many people to find permanent housing
As you've heard today, it's been a critical support today on behalf of the city
I'm here to ask the port to continue this critical partnership by voting to extend the port's lease of this about a property
The city, Seattle Seattle Human Services Department has sent a letter to the port to port commissioner bowmen, I believe, and formally requesting this extension
And since then, the city and its village operator, the low income housing institute who joins me today, have been engaging community in this matter
We have last month we hosted a public meeting and with community to learn more about the community's experiences with the villages and have overall heard great support from Magnolia, Queen Anne and the surrounding communities for this village and its operations
I just wanted to see
Just use that
Perfect
So I just wanted to provide a little bit of context about how the villages fit into the overall response to homelessness that the city is undertaking these days
So in twenty seventeen, as you've heard, we've we completely changed really the way the Human Services Department invests, manages and measure success in our homeless response system
And we wanted to increase both the quality and the quantity with more people finding housing and with more solutions
And so we really changed our entire model to go to more supportive services, more enhanced shelters with things like 24/7 access, more case management, allowing people to come inside with their pets, their possessions, their partners
And now we are seeing the positive results in those investments
And on the screen, you can see that we have in twenty nineteen in the first six months, our data is showing that we have more people served, more people moved into housing and more people living with disabling conditions remaining Staveley house
So our efforts are working and your contribution is part of that is making a difference
The villages perform at a high level in this system and as some of the most sought after shelter resources we have available
We hear anecdotally and when we talk to people outside on the streets that coming into a village provides a first step on their journey into homeless, into being housed
Again, you've heard that they provide the kind of connections to housing that that they need
And the city now has eight villages that operate on public, religious and privately controlled property
These are crucial and are showing results
As commissioner, to your your question about results in 2017, when we first started, we saw a 22 percent exit rate to permanent housing from villages
Today, that figure is 37 percent and it outpaces some of the city's other successful shelter prograMS So the villages and the evolution of the model there, thanks in large part to LIHI, is working
And really, I just wanted to give a little bit of of kudos
This slide is just really meant to show how that that program has evolved and that we are making a difference
We are now running these very much like enhanced shelters with hygiene services, running water showers, case management onsite, helping people really develop their own plans
Let's share and talk about that a little bit more
And really, they this democratic governance structure has made a difference for people who are living in these villages and they are very responsible and in very proud of that model
And so we would like to just
Here's your numbers, Commissioner
We just wanted to talk a little bit about the the results we're seeing, the increase of people leaving these villages and moving into housing and ask for your continued support so that we can continue these great results
And now I'd like to turn it over if it's OK to Sharon
Thank you so much
And I really appreciate the commissioner's support in the last few years
And thank you, Commissioner Steinbruck, for coming to the Open House event we had Councilwoman Sally Bagshaw was there as well as on port staff
And there was an open house where we featured the new houses that were moved into the village
We had twenty three tiny houses and expand it to 42
And instead of just a row of on Porta-Potty and people having to hunt around for showers and go across town to do the laundry, we were able to put in plumb toilets, showers, laundry
And I've really nice kitchen sink and and amenities
So we are grateful to the airport for this invaluable resource
You have land
We have the city
The city is providing the operating support, water, sewer, garbage
And a city, most importantly, is providing funding for case managers
And the case managers are doing a terrific job moving people into housing employment
Just because instead of having a tent, people can lock their door
People are going to school, going to work
Moving into housing is just absolutely phenomenal
We invite you all to come in and we'll give you a individual guided tour and you can really meet the residents
I would say that what you've done is also a national model
We have lots of we just had the mayor of San Jose
He's agreed to build two tiny house villages and he wants to expand to eight
We just had the mayor of Tacoma come by
We've had Honolulu City Council
We've had lots of people around the country
And now that this is a proven model, that instead of people staying in tents during the heat, it insulate a tiny house
They're able to make a quick bridge into permanent housing, long term housing
And numbers are really, really high
Which is which is great
And we are very blessed to have the city support
When Mayor Durkin came into office, she immediately set up three tiny three new tiny house villages, Whittier, for homeless women to hope with a focus on African-American and people of color
And then she also has been helping with new villages and expanding the villages
Lake Union Village is also in South Lake Union, which is the third one she helped setup
So we are very pleased to be here today in support with the community and with our residents
And ask that you consider renewal of the lease
Great, thank you, Sharon
Questions for staff
Sure, Steinbruck
You didn't talk
I don't have too many questions
You've really answered them all
And so have this wonderful testimony provided by some of the residents and past residents of Inner Bay Village
You know, just the fact that it's called Inner Bay Village gives a sense of place and community as compared to well, I mean, this shelter or that shelter last week or what have you
But thinking about this
Sharon, you've done such tremendous work and you're your organization at Lehigh that you continue to do and now setting an example and nationwide on the one hand
Sometimes people ask, well, the parts not involved in housing and homeless housing
Well, we're not really involved in the homeless housing, but we're facilitating, you know, the land that supports what what what you've created there, such as being part of community
And I think fulfilling a an important aspect of our mission really recently read written to include quality of life
So while economic development is central to our mission and quality of life is very much a part of making this possible and very consistent with our mission
So I'm very, very supportive of continuing this lease
It's not clear to me why it's only one year
I mean, that's a question for you, Sharon
Why it couldn't be extended a little longer
But I think the tour cinched it for me
Again, thanks to the residents who guided us around and showed us with great pride and sense of dignity there and hope
Once you lose hope, it's pretty hard to get it back
And I think this gives hope and dignity, which are essential to getting your feedback on the ground, stable, stabilizing lives and finding a longer term solution
And nobody would say this is a long term solution, but it certainly is preferable interim solution
And the concept and the model to to bringing things, to restoring that sense of dignity, stability and safety and security even for children
Parents we spoke to there felt very comfortable and safe
And the community provides that safety net
It's the same community of residents, not some enforcer from outside
The self-management also gives a sense of self-determination, which also adds to the dignity
And so there's so many things here that are so good and so important to helping people get back on their feet and achieve, you know, longer term permanent housing
I could go on, but I'll just say that about it
And seeing is believing if any of you haven't visited, it's well worth it
You should start charging, however, you at least put a collection box around for all these cities that are coming by and maybe that contribute a little something back for for the time involved
So that's that's about it
It clearly is a model that is producing successful outcomes
It's it's not it's not entirely new because Hooverville in Seattle and elsewhere in the country in the 30s during the depression was also a community of a sort of self made in checks, basically
These are a little better up little improvement over some of the Hooverville, the pictures I've seen, but that the idea of community and self-determination and self-management, all those kinds of principles are proven to to lead to better outcomes
So thank you so much for your hard work
You've done the heavy lifting
You and your community of residents, I hope, will continue to see this this approach that brings much greater dignity and compassion to this crisis that faces our city, the region and the country
Well, I just want to say we would absolutely be delighted if the lease was longer than one year
So I just want to say, in terms of your quality of life, we know that
We know that the homeless crisis we have in Seattle is having a really negative impact on tourism, trade and walkability that
And so we feel part that we're really part of the solution
Absolutely
When the police encounter people living in tents
An unsafe location, their choice in terms of having to move is to move into a tiny house as opposed to relocating or moving into a mat on the floor or moving a block away
We want to be able to provide tiny houses for people and we think that that would help the environment, especially the waterfront
Pioneer Square, downtown locations, neighborhoods, industrial areas
We think that we could set up more tiny house villages
You will see the difference immediately in in our neighborhoods and in our commercial areas
Commissioner Gregoire, I wouldn't take just a quick moment
I feel that so many of you have come before and said thank you to the Port of Seattle and thank you to the city of Seattle
And I really need to flip this and say thank you to the community who has embraced this opportunity wholeheartedly
I
It was about three years ago when several of you came before us and said, we want these residents to be in our community
We need to find a place in our community so that we can continue this important partnership that we've built and a true spirit of community
So thank you for bringing us the opportunity
Thank you for enabling us to be a real partner
But honestly, thank you for showing us day in, day out what being a community and what being a neighbor really means because you take care of each other every single day
If two asks because I'm leaving at the end of this year as a commissioner, it's very hard for me
One
It was very meaningful to help when we established the tiny village
I want to be clear about this photo
I'm holding a paintbrush
Not anything that had to do with construction that would not have helped anybody
But I do think that moment helped a lot of our community at the port invest their time
And so if there was an opportunity to do a refresh, whether it's painting or gardening, I'm looking at my great leader, Veronica, to think about how we bring the Port of Seattle employees to understand what this means by being our true neighbor and to be our true community
That's one
Ask the seconds
I just had the pleasure of serving on the Inter Bay Armory Committee for the last year
Please continue to monitor that
There will be a report going to the state legislature about a public development authority for that property
I was the sole representative of the manufacturing industrial port
I could add a bunch of other slashes there
I advocated that
I think this is an opportunity for where we have a great, great community partnership and I wouldn't want to see that go away from that space
There's an opportunity to integrate housing
I would only in that space
It would only be meaningful if we continue to provide manufacturing and industrial economic opportunity for our residents alongside truly affordable housing
Otherwise, that would be an opportunity completely squandered
And I think you guys were the best advocates I've ever seen in this space
So please monitor that and continue to advocate for the great community that you saw
Thank you
I think Commissioner Caulkins wanted the season
Just a quick follow up
I do recall three years ago some hand-wringing going on about using port property, even on a temporary industrial lands
Even on a temporary basis for said uses and then a recall with great pleasure of painting with Commissioner Gregoire, although you don't see me in the photograph
But the but the reality is the fact that whatever two years later, we have a doubling of the facilities at what a tremendous success
And the community that came and advocated is even doubling down for that
So talk about alleviating any trepidation we might have had up front
And thank you very much for your community efforts
I do want to say that we had that February snowstorm that was really wicked and impactful
And just to let you know that we had people off the streets in the snow storm and we moved them into inner bay
And then very quickly they were able to have heat it tiny houses
So Enter Bay was part of the emergency solution to get people out of there
The snow
So just a quick question
I had a chance to visit when it was still 23 houses and I at the time I believe there's some litigation that was preventing you from reaching the what you intended with the full scope where you are right now
Is this the the full scope of what you think you can fit there? And relatedly, are there any other things like Liddick pending litigation or anything that's stopping you from fulfilling your mission? Yes
We had a challenge, which is a CPA challenge
And we went fruit went to the hearing examiner and the hearing Zarmina ruled in our favor
And so we were able to expand the village
But I will say that that one complaint caused people to live for eight months without flush toilets and plumb showers and and expanding the village
That was a real hardship
There is, I should say to the port staff, there is more land surrounding the village that we would like to use if we could
And we're happy to talk to the port about that
The other thing is that we rented a port storage facility and we have 60 tiny houses that have been built by volunteers and donated to us
And we have 60 tiny houses that are ready to you know, we just pick them up on a flatbed truck or on skids and we're looking for another site
And so we just want you to know that we feel it's very important to help people who are unsheltered, who have no place to go
And we stand ready
If you have additional property or if you want to expand the existing property, we would be very, very grateful
Any other questions, commissioner, sir? I thought that I wanted to share
There is a book that was recently published
I think it was called Shell during the Depression era
And it traces very closely the whole emergence of the shantytowns and Hoovervilles
And it tells the story of how Hooverville done the damage Tide Flats was set fire to, and it was believed to be done by port officials to clear the area
That, yeah, I don't know if was ever proven, but it's but but it's something that demonstrates how far we've come
And this little shacks didn't have heating and plumbing and so forth
And large community kitchens
But that gave rise to the era of public housing because in the city council worked to establish the first public housing authority in the United States, it built yes or terrorists, which my dad was a project architect on
So a little history there
All right
Well, I just wanted to close before we take a vote on this and just say I think Commissioner Feldman said it
This is not what the port normally does
But that said, three years ago, I had no hand-wringing over this
I was more than happy to move forward in my day work
I work with low income communities and I know every day that it is you are unable to move forward if you don't have stability
You just cannot move forward if you're living in a car or in a tents or on the streets
And so he was proud that my colleagues, Bill, voted in favor of this
We're all very supportive of moving forward
And again, when echo what Commissioner Gregoire said, thank you all for coming out
I mean, Janice, you and rest your team
I wouldn't have ever called you owls., but
Yeah
And Reverend Cornwell, I mean, you guys, you were just amazing
And you really you kept at it and and, you know, sharing
You've been working in this space for 30 years as long as I've known you
So thank you for everything you've done
And probably most importantly, you know
Thank you
Danny and Joseph and Kimiko and Karlo for sharing your stories
It takes a lot of bravery to come up and talk about that personal struggles in front of everybody
And we just really appreciate it
And I think we're all really proud of the small role that we can play to help you all move forward and hopefully continue this
So
Well, thank you
Thank you
Well, with that, I'll call for a motion for adoption of seven a second that it's been moved and seconded
All those in favour please indicate by saying I I
All those opposed nay i's have it
Thank you
Thank you
The next item on the agenda is 8, a introduction and public hearing for resolution number thirty seven
Sixty two
A resolution of the Port of Seattle Commission declaring surplus and no longer needed for approved port district purposes
Approximately four hundred seventeen thousand nine hundred sixty three square feet
Nine point six acres of port owned real property located in the city of SeaTac
King County
And further authorizing the executive director or his designee to finalize negotiation
Prepare and execute on necessary documents to transfer said real property to Washington State Department Transportation for use and the extension of state route 5 or 9 in connection with washcloths seatac to I-5 freeway extension
S.R
5 0 9 Corridor Completion Program
Phase 1 Project
Commisioners this transaction could assistant relieving traffic at the north end of the airport and to present this is island
Royal
Good afternoon, commissioners
That's right
You know what I what I think that would be? Yeah
I actually I was I mean, that motion and a second to the public
So I have to have a motion to entertain motion second for introduction of resolution 37 60 to
Excellent
Second, second
It's been moved and seconded, continue on
Well, I'll keep it simple
I feel pretty mundane after listening to what I did for the last hour here
Legal portions of it
This property is being acquired by Washington State Department Transportation under the threat of condemnation
That is not a negative thing
That's just a process
They have offered fair market value for that in an appraisal
We have reviewed the appraisal with an MRI
He has concurred with it
That'll be the $7.4 million we receive for it
And given the length of time we have to get through a commission memo, the FAA has already approved this
I have it in writing
It says it's pending in the commission memo, but it's not anymore
And under some editorial language here that is unrelated to the motion we're asking for, which is trying to explain why we're getting seven point eight million instead of seven point four
And that is somebody would ask me that question sooner or later
That is the finishing of the memorandum of agreement we had with Washe Dot back in 2009 when we swapped them about $16 million with the property, which actually enabled 5 0 9 to raise up in US standards, became a leading project with the state of Washington
So they owed us a little bit of money after the end of that deal
And that's what that is
Have any questions? Any questions? No
Me too, maybe testified on the resolution
Nope
OK
Well, with that, we're gonna actually have to now close the public hearing and resolution
I'm sorry, Greg
Yeah, closing it
Closing a public hearing on resolution thirty seven
Sixty two says no gavel
I'm messing with the gavel
All right
With that there is a motion second on the floor
No other discussion
Oh, a commissioner
Just very quickly, obviously, we hear from our partners in SeaTac about the traffic congestion
They are very aware that we're moving forward with this today and how this could potentially address some of some of the congestion on their city streets, is that correct? It is correct
It wasn't long ago, a couple of years, that in my role I sold to the city of SeaTac property that connected 24th Street Twenty Eighth Street in Des Moines, which in effect gave a bypass to International Boulevard and hooked up the airport with the massive development that the port did on the south end
This will is actually in a very same spot
They're sitting on top of each other
And actually we had them coordinate because I didn't feel like it would be a good idea to have one come in and build a road and then another one come in and build a freeway and not be compatible
So if you go out on 24 28 right now, you'll see a tunnel underneath it
And that's because of the cooperation between Washington and the city of SeaTac for the future exchange
So that whole thing was planned well ahead of time
We've been at this for years
Thank you, MR Stern
Just a question about why we've been carrying a debt with washed-up since 2009 on another property
In 2009, the commission entered into an agreement with washed-out for a land exchange and there is a very complicated deal here
The exhibit alone is one hundred and eighty seven pages long, but the ultimate goal of it was multi-fold for the Port of Seattle
We got property we needed to do the rental car facility site that washed-out had
We had a piece of what is everybody thinks is the freeway, but it's actually our driveway on the north end that we needed for improvement
We got three deals with them, including what's called a soil nail wall, which is basically a bunch of steel things going underneath the freeway off of 5:18 holds up the wall for the rental car facility site
We have the approach lighting system for 1:06, right? That goes over 5:18 that we had to have an agreement with them on that
And then we had a right to a future bridge, private bridge between the north into the airport and the property that the port owns, north of 5:18, the L-shape parcel, even our employee parking lot
They got the right away on the south end for the new alignment because the alignment had changed and we tried to match it up as close as we could
Dollar wise, because they had not been not in a position yet where the state had allowed them funds to do this
So it was a zero sum transaction
They use the balance of what they owed is after all the appraisals and everything were finished out to pay for those leases that we owed them for and just took credit down
Ultimately, we wanted a long term right away, but that required a trip back to Washington, D.C
so we didn't want to wait for that
And they did pursue it and agreed to do that
It took them two years, but they finally got us the right of ways that we want for a long term on the soil and they along and the approach lighting system
And there were still a little bit of a balance left that they owed us at the end of the deal
This is a 5 0 9 project for them
They want to reconcile it with us now and pay us back
I bet Commissioner Sandbrook was not expecting that answer, but that was fascinating
One time
Yes
Yeah, I just was it was unclear to me why why they owed us that money for now for almost 10 years
And I don't know if interest is accrued on that, but it sounds like it was a complex no cash transaction and they didn't have the money at the time to pay it
And now they have the money to pay us
Correct
They like that
Plus they reduced it by the permanent right away
So we're not paying for those either anymore
MR Corkins view flipped side three
It's a diagram of the property
You know, I got that
I can
OK
So my question is that remnant parcel still owned by port? That's correct
And they they will only take what they need for their operation
My review appraiser or may I appraiser said that that property is still valid
It is not an uneconomic remnant
OK
So we had no grounds to try to say that it's an uneconomic rent
Anticipated my question perfectly
Thank you so much
MR Feldman
And following up on that very point, then it's a rather treed lot
And then the property off to the right is even more treed
And I was just wondering whose property is that? And the adjacency makes it very interesting
The adjacent property is owned by a private, private party, the ones that actually owned the trailer park that I acquired for the port a long time ago
And he still owns it
And do you have any sense of their intent for the property? I don't think he really has
He did really, really well when he sold his interests
And so there's no construction on the property
It's just a natural site
Very good
Thank you
Great
Any other questions? No
Okay, with that
There's a motion on the floor for introduction of resolution thirty seven
Sixty two
Let's see
Any motions on the floor? All those in favour please indicate by saying I I
All those opposed
Nay, I said
All right
Thank you
Next agenda item 8 B authorization for the executive director to one, prepare design and construction bid documents for the Terminal Solid Waste Improvement Project at Seattle-Tacoma International Airport to execute a long term contract for standardized solid waste compactors through a competitive process for a period of up to 10 years and three use port cruise for pre-construction activities
The amount of this request is one million two hundred twenty five thousand dollars for a total estimated project cost not to exceed $6.4 million
Commissioners This project will ensure we have the infrastructure to meet the waste and recycle needs for operators, travelers and worker safety presenters are Michael Dai's Hart and Tom Burney
We don't want to do the aviation budget again
Well done
All done
That's our job
Executive Director metrick
My name is Michael Dysart and I'm a capital program manager at the airport
And with me is Tom Burney
The US solid waste program manager for the airport
Again, today we're gonna be requesting for design authority for the terminal solid waste project
We're gonna be requesting authority to enter into a long term contract to purchase compactors
And we're going to be requesting authority to use port crews for pre-construction activities
We're requesting one million two hundred and twenty five thousand dollars for a total estimated project costs not to exceed six million four hundred thousand dollars
There's three main reasons for this project growth at the airport
Addressing sanitation requirements and supportive environmental initiatives, we'll give a brief project scope overview and a cost and budget summary
The very first line we're going to talk about is the first slide is about passenger and waste growth
This slide depicts two really good probleMS One, the airport's growing the airport and to the airport's recycling and compost programs are working
Over the last eight years, the airport grew 58 percent from 32 million annual passengers in 2010 to just under 50 annual met and passengers in 2018
Total annual solid weed processing increased 45 percent with 55000 tonnes in 2010 and eight thousand tons in 2013
What is interesting is that composting, recycling and trash all increased about the same amount in volume
But that's not the interesting part
This represents a 400 percent increase in composting posting, a 90 percent increase in recycling and only a 20 percent increase in trash
Which is pretty astounding for the risks for the composting program in eight years
But with growth brings challenges
Tom would be more than happy to take you down there
Just don't wear your good shoes, I promise
So the North and central terminal collection areas there right below the central terminal or the glass wall, as were constructed in 2003 for garbage and recycling only
And they're the primary areas that handle the vast majority of the airport terminals, B, C and the main terminal
About 75 percent of the terminal
Unfortunately, there's no more space available in the area down there on the secure side
The pictures that you see on the left is what it normally looks on a normal day
Operations pretty good
The staff does a really good job of keeping it pretty clean
Unfortunately, if there's a problem, if something breaks down, if there's a risk, there's a peak day
If there's a limited visibility of the hollar, can't get there
We've had a number of overages and it's starting to happen more frequently
Things get overwhelmed and we have trash overages
I particularly want to point out the picture in the lower right hand corner, which is how we handle our current compost
As you remember, I said that we it was built for recycling and trash
Our current solution for compost is these little 2 yard movable bins
As a new program, it's grown immensely and we haven't
That's how we we do it now
Can I ask a question? This overall is passenger waste
M Help me understand
Are we talking about just in common areas or is this also tenant ADR? This is the combo
That's correct
So forgive me, maybe I go back to the other chart that I'd love to understand because I think there's another diversion off of the growth of waste and that has been our food donation program
That's not going into any of these three buckets
Absolutely
So I sit there and think about how we represent this one put in the waste category 'cause clearly we're talking about food donation to deserving community organizations
But both of those have been partner important to ensuring that's not ending up in that room
Absolutely
There's several tactics, says part of that waste diversion program, the food donation program has been very successful component of that
The composting, the food and composed tables not to include donations, but rather what's generated within the airport, dining, retail, the consumables passengers, the rest of the food that's used by kitchen waste that is brought down to these areas
What's being captured as well as recycling, those are the core components for waste diversion program
And that's specifically what we need to ensure we up gauge the size of containers for
So we continue to support do we charge our tenants by volume or it's included in their lease? It's a great question
We charge a pay as you throw fee for accessing, which is a incentive to recycle more
And that's been shown to work quite well for both the airport terminal and the airfield
And so the compost answer question would be free for disposal, as is the recycling
Do we actually turn this into compost or we're just gathering it as compost? That's correct
We're gathering the materials and we set it off to Cedar Grove, who processes it
And it turns into hopefully we're using your own garden beds
What kind of increase in costs have we seen for disposal of recycling? As a result of the Chinese embargo, essentially on recycle, that's a great question
Recently, the city of SeaTac to pass a resolution to support our Horler within the city of SeaTac, which has recalled G and has assessed four commercial entities
A couple of fines and essentially we paid out in twenty nineteen seventy nine thousand dollars in additional fees to support the hauler and their continued operation
That money was used as capital to invest in their additional processing capabilities in machinery
They invested in optical sorters to get better stream purity to ensure they could find viable in markets
So as I think it's come to light, that recycling is a bit more problematic than we like to think
And I'm wondering if we are using an old model to determine moving forward whether this is the appropriate emphasis
Moving ahead, I guess what I'm getting at is should we also be considering charging for recycling at the tenant level to encourage the use of reusable bags at the airport more often or less packaging overall so that the actual production of waste, regardless of stream, is lower? Absolutely
That's a great question
Right now, we have a ongoing investigation for our solid waste management plan update for 2020, which is also looking at additional capital
We should invest in other programs and opportunities such as single use plastics, where else we can accomplish that waste diversion goal
So we'll be investigating that this next year as we continue to study it
In terms of charging whether that will provide a positive incentive, we'll be one of things we'll be looking at as well
I'm familiar with a couple of examples of facilities of our size or maybe larger that that use their own waste to produce energy
This is obviously a much larger scope project, but is it something we've ever considered? Yes, I think we can talk at length that that is about that as well
We will be looking at that as an opportunity within the utility master plan and the solar rays master plan in 2019 2020
We've done an initial study to look at the feasibility of wtt, as has King County, and we're looking at matching King County and remaining aligned, most importantly within our waste diversion plan within what federal, state, county and city are looking to do
And by pursuing recycling, we are indeed maintaining that alignment
In my overview this it appears as if we're not spending money on
I mean, this would probably be necessary even if we chose to put our waste energy facility on site
But because since this is really about collection and sorting, correct? Yeah
One last question
Our numbers
I think the first slide, the passenger and waist growth, how do we compare to like size airports elsewhere? And I'd be particularly interested in European airports with about 50 million annual passengers
I would love to find out that out about European airports
I put in a couple of requests to go and travel abroad and take a look and gather better data, see if that gets approved
But in the meantime, I know that domestically we are one of the leaders
We're doing terrific
Of course, we're fighting for first with SFO
But in terms of other comparable sized airports, we're doing quite well as I've done other preliminary calls and screeds
Sounds like we're leading the field, especially with our composting food and compostable diversion
Quite well
Thank you
So you went to the exact comparison that I wanted to do, and I think this question is to exact a director metric
And I can ask my commissioners if they would support this
I'd love a study and just a memo to us reflecting the recent prohibition on plastic water bottles at SFO at Kennedy and how quickly are ADR tenants could potentially make that change? I think that would be a waste diversion opportunity here
And that does not
That means there still be water at the airport that you could purchase at Reebok's water
It, of course, would encourage people
But now that our airline partners have actually tabled in Alaska, making announcement that we can bring your own water bottle on
We've kind of solved I call it the ecosystem problem a little bit
I'd love us to do an analysis just to understand what it would take, I think legally based on our ADR contracts
But understanding the opportunity from SFO and JFK and how it's changed their way, streams would be in great commission
Great
A friendly amendment possibly to expand it to say single use plastics generally
Not just water bottles
Yeah, but all single use plastics
Yep
To look at that, an example
It's going to take I think some effort on staff, maybe outside consultants part to say what's feasible, but it's a significant part of our waste stream
Correct
Thank you
I totally agree
It's a friendly amendment and what we need is the feasibility because of existing contracts
Otherwise, believe me, I think you would've had a commission passing this the second that we talked about
But when you talk about the feasibility and how we could make that change, I believe we ran into some of that legal questions when we tried to go strapless
I think there was some of that investigation of and I think we ended up buying it for them
But the adoption of strollers or compostable straws
I know that was part of the exploration and the challenge associated with implementation
One of the things that was brought up earlier was the question about the, you know, the actual food donation part
That is just an extraordinary amount of waste in food in general
But that it is, I think you said, subsumed by the compost category or is it is it within that category? It's actually excluded from these numbers and rightly so, because it's reused and repurposed
Okay
So is that then? Wouldn't that be a great line to have separately? Commissioner Gregoire said no, but I did know was that actually you were asking to have it expressly? I know you broke it out
I don't know that it was not to be
I differently
Yeah
Yeah, I that's great
As long as we can show that trend 'cause I know it's a relatively recent effort and one of things I know in our own catering efforts that I know staff often take their own initiative to take whatever leftovers we have and we often have rather nice capabilities
What we don't always deal with when we order catering to have like to go containers to go with your film, is this relevant to
I just I just need to let these guys finish their presentation
The the one thing I just want to make sure is this, including material that come off the island, off the airplanes
Now, this this specifically is targeting the airport terminal
The airlines are collecting this material as well
That's correct
And some of them are recycling or sorting
So is there a way in which we can embrace their participation as well? Yes
And we'll be exploring that along with our solid waste management plan update for this next year
The majority of their food waste for deplaned is handled by their flight kitchens
I am really excited that everyone has chimed in about this topic
That warms my heart and gives some validation
So thank you
I was doing a great job
There's got to be some economies of scale
I mean, depending on what we're doing and the scale that we need to embrace, we'd have a lot to do with their participation or else collaborating with the flight kitchens
And to that end, we've included that scope within our utility master planning to look at the aggregate volumes so we can look at long term capital projects over the next 25 years that can address this as well
Ok
Next slide
All right
So moving on
So slender for this is this is not a pretty picture at all
So this project goes to fix
So what you're looking on the left is that our current facility doesn't have proper drainage
So this project goes to fix the drainage and sloping of what we currently have now
It just needs to be fixed
And on the right, you see how workers and a lot of spots are currently cleaning their trash carts
They take water from a hose or a bucket
They swish around their cart and they dump it on the ground
This project addresses both concerns
These may be regular toworry requirements that we're fixing
But more importantly, this is for the safety, health and welfare of the workforce that needs to use these facilities, be it tenant airlines, custodial contract or port employees
The third driver for this
And kind of to Tom Point and we've been talking about this is how this really supports kind of our environmental initiatives
On the left hand side of the slide is how the project necess- supports the overall century agenda goals in the dark or in the medium Bluebox
This Inforum the airport's environmental strategy plan goal number 10, which was to divert 60 percent of terminal waste by 2020
To achieve this, the first solid waste management plan was developed in 2010 and then updated in 2015 and then will be updated next year
One component of the plan of many is the forecast and capacity analysis study, which you see on the right
Slight side of the slide and which the project was based
The volumes that we see for this specific portion, the multiple colors, represents the different way streams and tells us we have gaps in our compost capacity or that we need to enlarge our recycling and garbage compactors to reduce our overages or provide resiliency dart peak times
But that's not the only thing the plan does
It looks at many things at a time
It attempts to align with the local, state and national goals, emerging trends
For example, things like the single use plastics reduction and food waste and food waste prevention prograMS So all of the environmental programs, all the things that you've talked about it
It's looking at
On the next slide, we have the waste
What you're looking here on this this slide is really the the slide depicts the percentage of terminal waste that the airport has diverted away from landfills
This does include things such as the food scrap waste program in the terminal itself
Really, in 2006, it was just the recycling program
In 2006, they added coffee grinds to the max
And in 2009, they really started with a food and compostable collection program
In the past 10 years, it's grown significantly
And as of 2016, a big victory for the program
All new food and beverage leases have recycling and compostable service where requirements in them
Recycling and compostable volumes in the central terminal are expected to double in the next year as a central terminal is expected to come online, or at least in that that section
So it's expected to double in that area
A couple of questions related to these trends in the earlier slide
It looked as though waste is being produced
Is tracking closely with passenger growth
In other words, the production of waste is not decreasing in itself
If that if I'm looking at that chart correctly, which is to say the consumers consuming public is not reducing its waste, it's keeping right up
On the other hand, we've seen a pretty impressive achievement of reaching 40 percent waste diversion and 10 years from where we were before
How are we going to reach 60 percent in the years to come? When do we expect to reach that? What strategies are are being contemplated to get it to the next level? And are we building capacity within our recycling and composting to accommodate at least a 60 percent waste diversion? That would be at the time that the volume of waste is even greater because we have that much more passengers say 10 years from now
That was sort of packed a lot in there, but maybe you can piece that together
Thank you
So these single stream recycling and composting are the backbone, the large components of our waste aversion prograMS And by supporting this proposal to add additional capacity specifically for the composting, the recycling, we were able to achieve that
Both the capacity for this investment will accomplish the need at least of the capacity, recycling capacity, capacity and almost trash all through later
This trend continues with passenger growth and the volume of waste that's being generated, which we would hope would come down over time
But it doesn't seem to be per person or per passenger at all
So I just want to be sure we're building in that capacity for at least a 60 percent and that we have strategies in place to get to 60 percent
And maybe you could follow up with that later
If you don't have that information
Absolutely
So we can
We conducted a gap analysis based on what we expected for throughput and volumes
And this project opposes the recommended infrastructure to support the volume and throughput that we anticipate through 2030
Forward to support not just the 60 percent diversion goal, but beyond that
And this supports beyond that also resiliency for the terminal so that you have alternate disposal
And this is not part of a SAP project
No bucket list
We don't have we worry about investing in recycling here
So so that first part of that question is a fairly complex question
And we can have the environmental folks come right back and ravages and bring back
Yeah
Because I'd like to feel confident that we are working toward that eventual goal of 60 percent or more
But I think there's a general message to consuming public that we're still producing way too much waste in the front end with plastic bottles, plastic, single use and the rest of it
So maybe we have a answer to our biofuels supply
Ok
But plastic is not a biofuel
It isn't the rate
I think if I can interject really quickly, I think Commissioner Steinberg's point, it would be helpful not now, but to get an understanding of more of a breakdown, you know, how much your plastic bottles, et cetera, et cetera, so that we can hopefully his staff can develop some really specific strategies that we can educate the public about in terms of recycling and composting
And Commissioner
And we would absolutely love to share that
Our solid waste management plan not only does a waste characterization study to understand exactly what you're describing, the percentage breakdown of each stream, but also identifies the viable tactics that are being used domestically, globally that are most efficient at accomplishing that waste diversion in terms of emissions
Steinberg's comments about what tactics we're currently employing
There's many there's the food waste diversion
We have containers with the best industry
Recognize signage that we're employing for the traveling public
We've done a lot of engagement with our leases by having postal service wear requirements
So we are leading the pack in those tactics
In terms of the growth, it is indeed growing the executive directors comments and prove our very first slide
We're experiencing a matching trend of volume of waste with our passenger growth
And it will continue to grow
Oh, we are trying to capture as much of possible away from landfill
That is, the gender still operate a voluntary program basis
We not for all recycling and composting SeaTac
Or is it voluntary for the
We did implement twenty seventeen the tenant recycling service where requirements suspended their licenses
We look to incorporate this into tenant leases when new leases come up
So as as it can be done
So plastic included can be
So did you have any
Just what? He said that we've got a whole solid waste management plan that this team is busy working on, and when it's ready, we'll come back to you and look great and help you dive into the details
Thank you for coming
I don't know whether this is in your ballpark or ESCA executive metric, but I would love to know what's being generated at the flight
Kitchens will from the from the airlines themselves
It seems to me that you're doing this enumeration of our waste, which is we have a lot greater control over
And I would just ask to see if the airlines would provide similar data, because I would imagine just I would love to know, just from a volume perspective, how does it how does it rate compare, does while we're taking on this heroic task? Let's see if we can do it comprehensively
Understood
We'll look to include that within our future analysis
My
So continuing on
So in our proposed solution
We create space by expanding that to existing airside waste collection and processing areas by adding approximately 20, 400 square feet of space to the west of the central terminal
We address levelling and drain issues of the current areas
Again, these are the primary areas that serve the majority of the airport terminal and passengers
We buy new, larger compacter units size to handle the projected volumes through completed contract that allow for a long term standardization of assets
We buy eight new compactors that are located on the secure side of the central terminal in one new compactor that is located in the service tunnel for an additional non-secure operations
And lastly, we add six sanitation and cart wash stations throughout the airport to provide safe working conditions for tenants and our employees
Today, again, today, we're asking for one million two hundred and twenty five thousand dollars to proceed with design
This estimate is based on a fifteen percent concept design
The design will take approximately one year to complete and we should be back next year to ask for authority to award the construction project, which will take approximately a year
Once it's awarded to construct pending any further questions
That concludes our brief
Great
Any further questions? Great work
Thank you
Good presentation, MR Ziff
If I can just ask one question, which is do we have other mitigation measures that between this time and the time that we get this project going that we'll be employing just as we're continuing to address because it's going to continue to before? I think that answer depends entirely on whether we approve the FTA that are part of the mitigation response
So I'm not aware of that approval
Well, it's like you were made for today
I slice
I just came back from Utah for a week, a backpack and new employees
I feel new employees and a trip to Europe sound like they're on
All right
Well, with that, I will call for a motion to approve
Item seven B
Segment
OK
It's been moved and seconded
All those in favour please indicate by saying I I
All those opposed nay eyes have it
Thank you
And great presentation
Thank you very much
The next item on the agenda is 8 C authorization for the executive director to set 2020 marine storm water utility rates with an increase of 8.2 percent commisioners
This rate increases consistent with the forecasts we presented to you last year
These funds will enable us to improve our stormwater system and enhance our efforts to protect water quality in Puget Sound
Presenters are Sandra Kilroy and Srini SREENIVASAN
Bandai Kotler
Right
Good afternoon, President Bowmen Commissioners, Executive metrick, Thank you
I am Sandy Kilroy, the director of the Ports, Maritime Environment and Sustainability PrograMS And as was introduced, this item is the approval of the storm water utility rate for 2020
The executive mentioned that we were here a year ago for the 2019 rate
And what we're coming here to present to you today is consistent with the projections that we gave you a year ago
The Marine stormwater utility does provide us the mechanism and the resources to achieve our goals for water quality protection and Puget Sound
And it also is critical for us to maintain over time are built assets
I just want to hit a few highlights
One is we are now five years into running our storm water utility and it continues to go very successfully
We as part of our establishment, had committed to do a full system assessment by the end of this year
And we are hopefully on track
We'll show you some information in a few more slides, but we're expecting to complete that by the end of this year
We have completed 50 urgent repairs to the system and those have been identified because of this full system assessment and condition assessment
We've been able to do and we've installed 17 tide gates in our system and this helps reduce operational and safety hazards as well as improve water quality
Leaving our sites are fees to our tenants and our operational divisions and the alliance continue to be well below the city's fees
So on average, 16 percent
We also have been experimenting and delivering a few projects for under green stormwater infrastructure that we've completed four locations and I'll touch on a couple of those
And I'm pleased to announce that we've received an AARP, a award of excellence for innovative stormwater operations and treatment techniques, and that will be awarded next week at the national conference
So just a few pretty pictures
This is one of the green stormwater infrastructure projects that we're experimenting with
They're called splash boxes and essentially bio filtration techniques
We've installed one at Horten and one at the mic
One collects parking lot sheet flow and the other four roof run off
And essentially this is part of a pilot study for us to evaluate the different techniques for removal of pollutants from our site
We don't have to do this
This is part of the reason I think we're winning awards as we think it's really important in this area to continue to innovate and experiment with how we can improve water quality leaving our sites
So this is in addition to the oyster shell project that we presented to you last year
This is another project that we completed this year
We on the Centennial Park Pathway in front of Terminal 86 had significant flooding and ponding of water on the trail that was impeding the public use as well as our tenants use from the grain terminal
So one of the solutions that we chose to do was to create a stormwater pound or a green stormwater infrastructure that could hold the water and have it infiltrate and to the ground before and during Puget Sound
So again, this we would have had to do a very poor here anyway
And instead of doing a strict pipe pipe repair, we chose to do this green technique, which provides some ecological benefit
Overall, we continue to deliver better and more services at a significantly reduced cost to our tenants, to the alliance and to our operational divisions
And I'm just pleased to say that we're in the utility and very good operational and financial health
So I am now going to pass the mike to Sorini, Pendent Cotliar
He's our water utility manager and he's going to walk through the budget and the rate proposal for today
Mischer Gregoire, do you mind? Can I forget just unpack for a second
The better outcomes
I say this because in my view, this is one of the greater things we have done in the last decade for stormwater management
Forming the utility was not the easiest conversations that I've ever had with the city of Seattle or you or many others who got there
But we're at a point where we're 16 percent lower than the city of Seattle's rate would be for for our tenants and for ourselves using all the revenue
Investing in infrastructure that's core, just water pollution that would potentially be coming off
But you said we have better with cheap
Help me understand the better
So we are able to collect the resources for from our tenants and facilities and use those directly to maintain and manage our assets
So when our revenue was going to the city, they have a lot of needs and they don't always prioritize our needs
So we've been able to invest in pollution control techniques and pipe maintenance techniques that helps us deliver better water quality because we have had direct management of those assets
And I guess when it was going to the city, I was going into a black box as opposed to a splash box of rights itself writes itself
And I'm actually looking at forgive me if we were thirty three point two percent of our infrastructure inspected back then
That's really the inheritance for the city system
Right? So they weren't necessarily doing a full assessment of our system
That's a commitment that we made because we wanted to know what we have underground
And I think that was a wise choice that was made before before I came in and knowing very few utilities are able to know exactly what they have underground
And by the end of this year, we will perhaps perhaps you can address this in your presentation
But while we're still at 16 percent lower, if we went 10 percent lower than this than the city, we would have an even better cleanup rate
But the justification for not doing that, as best I can say, is C is that it would overburden or capacity to do the work, which then suggests to me, well, why don't we just hire another person if we're saving money anyway so we could exceed this? Right now, this this maintains the standards rather than exceeds the standards in what you're proposing right now
Right
Yeah
I think I'll just change quickly
And I think, as you know, we'll get there
But yes, I mean, we could have a higher rate to end with that, potentially do more
And then it's a balance of the internal capacity to deliver that work, not just on our side, but the maintenance staff side
And then
But we could do
You're you're correct
Yeah
We could do additional sweeping and treatment techniques if there were more money
But it's just it's it's a choice of balance of having more money, but it's still less than they were then the city would they would be paying correct the city anyway
And who are the folks who pay this rate? Terminal operators
Others who are using shoreline properties that we lease out? Correct
It's our it's our tenants that we lease to
If there's not a tenant on the property, then it's our either the alliance directly or our operational divisions within ourselves for a lot of these correctly
So if we raise prices, we're just moving money from one
The question for Sandy, before we get into the same issues, I wanted to ask about capacity and quality
If our green stormwater infrastructure is partial as part of the infrastructure, correct, it's only part of it
I don't know all the treatment methods involved here, but are we
Are we ever overcapacity? And I'm thinking of the analogy to the manner in which US cities and counties in our county have a system that cannot accommodate no heavy rainfall
And it goes into polluting Puget Sound through the combined sewer overflows
Are we having to do that sort of thing also, or is our water quality better treated? Is where I'm going with that and more complete so we don't have any combined sewer overflows essentially into our system
Not everything that comes off our site is necessarily treated
We try to prevent pollution coming in through best management practices like sweeping and cite site activities, you know, best practices for outside activities
Some of the tenants are required to have stormwater treatment and and they've installed that
So we for the most part, don't have significant flow capacity outlets
Renee? Correct
Correct me on this one
We have done some analysis related to climate change and sea level rise that we could run into problems in some future
And we're looking to address that
But currently we're not seeing a lot of backing up of of our system
And that was the corollary to my question was, are we building capacity for future occurrences of extreme, you know, weather, rainfall, tidal surge and king tides, etc.? Yeah
And I'd say the engineering folks are taking that into account as we design towards the future
And I think we might have to do some proactive work because of that
More of the tidal push into the system when you have big storms and and high tides
So that's part I'm sure that's part of our resiliency work that we're looking at
What's the impact of sea level rise and then the storms with that and in the engineering that we'd have to do to overcome those and to be part
That's music to my ears
Thank you
Okay
And as Sandy mentioned, the first slide we haven't sold, 17 died gates, which keep the tidal inflow out of the somewhere's system so that there wouldn't be a backing up of the system when there's a higher tide conditions that would still work as it's designed to
So then I'll continue on the presentation here
So this side here we have we show our assessment goals and progress
So the bar represents our actual goal per year
And this is starting in 2017
So the previous two years are shaded in gray and the current year is in blue either
As you mentioned, we're expected to finish the overall assessment by the end of the year
And we shouldn't lose my voice a little bit here today
And the numbers above are the progress in the previous years and the current year progress is at 83 percent or that was as of a couple weeks ago
And there's a couple of reasons for the slower progress so far this year
First
The focus early in twenty nineteen was on priority repairs, the conditions that were found in twenty eighteen
Essentially these are fully collapsed pipes that pose or that posed a safety and operational concern
So the focus was to fix those and about 20 were done earlier this year
And as you mentioned, 50 overall
And then secondly, our stormwater crews, which are comprised of Marine maintenance personnel, worked at 2:46 to manage and successfully complete the high priority obligations at that facility associated with the tenant vacating the site
And that work was not associate with the utility itself or funded by the utility, but it did utilize much of the utility resources both in people and equipment
So and then as a side note, those crews in rain maintenance did get a lot of kudos from the various departments and the lines for that work because of its quality and expediency in completing the obligations there
And yes, we do still intend to meet the 100 cent goal we have
Well, can't these numbers about three plus months or come as close to it as possible? So this side details the 2020 operating budget
All told, we are expected to have about 5.6 million dollars in expense
And this is in line with our previous projections
There's a lot of detail on the side
So the next slide summarizes some of the key points of the expense and the capital budget
So the 2020 capital budget approximately is 2.3 million
And that includes the TTN Outfall Project, which was a four year commission for project that totals about 4 million also
And this is the last year, 2020 of that project
Also, we have a small treatment project at twenty five and then some smaller full pipe replacements that are in various phases of planning and scoping
We also have an administration budget, which includes three full time utility staff, various city taxes and other administration costs, then the maintenance budget, which is the meat of it, is about 3.2 million and that includes continuing pipe assessments and reassessments as well as repair of conditions that have been found
And also we have we have all the required regulatory activities for our properties, which are all the other bullets listed on the screen
And funding these activities was one of the original goals of forming the utility
And initially we decided to transition it over the last few years, culminating in all of it being transitioned by 2020
So with this proposed budget, we we will meet that goal
So with that, the utility once again recommends a rate increase of 8.2 percent, and that is guided by feedback from the Utilities Advisory Group, which is comprised of port and alliance operations leaders as well as port finance leaders
The main criteria that tenants involved in that by any chance, I know
The main criteria we considered is listed on the site here, but essentially is to meet our LRP and charter goals and to build an open air reserve by 2023, which is consistent with our policies
And this recommendation is also consistent with the five year rate path we presented last year, as Cindy mentioned earlier as well
So here we have one quick question before we move from the rape criterion considerations
I suspect that many of these are are associated with longer term leases and so are probably not too susceptible to fluctuations associated with macro economic conditions like a recession
Is that true? Or will these
If there's a recession and local economy dips, well, we see a significant dip in in revenues associated with it
So the fees are based off of square footage of the lease
So as long as that does not change legally, then the amount that we would charge would be the same
Okay
Thank you
So this slide shows the projected rate path or the previous rate path through the projected path through next year
So the city rate is on top
This is for one particularly rate category, the very heavy, which is the highest impervious surface and therefore the highest rate cost
The majority of our facilities fall in this category
So the city houses on top in the green and the part is below in blue
And it's actually the numbers just show the percent below the city's rate
So the city's amount that the category or the port rate is for that category
And then so for next year, it's a proposed increase where we are looking at thirteen point three percent below the city for this particular rate category and on average, 16 percent below for all the rate categories
Then to illustrate the impact on our tenants here, we have two examples
So one is a small commercial tenant fisherman's terminal, and with a proposed rate change where we're looking at a little less than two dollars a month on a 20 to plus dollar bill per month
And then for a larger industrial tenant, such as the majority of a container terminal, we're looking at seventeen hundred dollars a month for twenty one thousand a month Bill
And then finally, here we have the actual proposed rate structure, so we have the city on the left
The part is in the middle
And as mentioned earlier, our rates are an average 16 percent lower than the city's
But the percentages vary across the different rate categories
So the the how much it varies is on the right hand column
And the 8.2 percent increase that we're asking for, your approval would essentially result in this restructure, which we would then adopt in 2020
And then with that, we're happy to answer any questions that you may have
MR Fellman, I'm cognizant of how patients are officers have been waiting for us for just a couple more questions
So the fact that it's our utility, it's still we are
We are
The alliance properties are subject to it
Yes
All right
So one of the reasons that the rate structure well below the city is the competitive question is what is it in other cities, in other states are the ports around the country
And my understanding is like Port Vancouver doesn't even have a stormwater requirement
So
So I can understand why the alliance might have input on keeping it at the stated goal rather than exceeding it as I as I was suggesting
But in addition that be again, because it's our utility did the known inputs for stormwater challenges like zinc, copper and
Right
And those are the two primary ones
As far as metals
Yes
Yeah
And so that's where off the exigencies come from
Right
Right
So and copper is brake pads and zinc is tires, right
Essentially, yes
Right
And so it's just doesn't see
I know you have to paint the galvanized roofs of our some of our sheds and that that's the other zinc source
Right
So it just doesn't seem to be like rocket science, but it's a huge expense if you don't pretreated
So I'm just wondering
My understanding is that cars have gotten off of copper brake pads, that there are like ceramic anyway
I understand there is evolution on this and with tires
I'm just wanting
Are we going to spend any time looking at alternatives? I mean, rather than incurring if we're going to be incurring this kind of expense, is this something that we would look to explore some research on? You don't have to answer that in depth right now
I'm just like you can get back to Commissioner Phelim and let me know
It's just like it's the same old problem
I mean, what are we going to do about addressing the problem? Yeah, I think, Commissioner, you point out that the big problem with stormwater in general, it's a large contributor to the problems in Puget Sound, water quality
It's a non-point source and a lot of it is from automobiles
As Commissioner Barmen said, we're happy to follow up with you after the meeting
We at this point, we are not doing research on brake pad and tire alternatives
But I know there was some work at the state and looking at reducing copper in and in brake pads
So happy to get back to you
That's an important question, but not for this particular item
Richard Gregoire, can you go back Slide 6 for a second? I think it's that this is the Dormandy utility operating budget
You mentioned it was really detailed
This looks like how it would be reflected in our budget, meaning our final budget document that would go to the public
And it's obviously here for the public as well
That's I need us to describe why we're claiming negative sixty six point one percent reduction in environmental and sustainability, which I recognize is being picked up in other buckets here
But it looks like we've decided to just wear out the environment and do something called a capital development division, which is actually, of course, where the work goes to achieve our environmental sustainability goals
So essentially the invite
So up until basically recently, I'm officially the only person within the utility so that the change is essentially just transferring after you over the summer, the manager over from the Environmental Sustainability Group into the utility, which is part of our overall goal of self-funding the whole summer program by 2020 to knowing I'm looking at Dan right behind you
Forgive me because I know I'm looking at a representation is how this budget will be reflected
And that's not actually what that makes perfect sense
It used to be a separate environmental sustainability division and there was a cross charge
This is all a corporate cross charge exercise, but it don't look like what it should have
You just footnote it, I think is where we're going
I actually think you could relabel all of this if that makes sense
I mean, at this point, you're saying, you know, we're bringing in the function
We're not going to cross charged, but let's be clear about that with some relabelling for the budget documents
Okay
I'm happy to relay about
Yeah
Sam, we had had municipal stormwater costs while before the utility and we're just moving them from environmental sustainability is across Shahd to this organization to a self-funded organization
But I think the title that sorry to be so fast
Got it
Self-funding our stormwater obligations could be heading
Are we still the only port in Washington with our own stormwater utility? Yes, I actually think where they only went in the country
Still
Still? Yeah
Yeah
So we don't have
But I know that every other state has the ability are in the same port structure that we do
But I'm just surprised
Moorst Washington state ports haven't taken this up
All right
Really? Yeah
Have we done it? w.p.a.
Presentation on this great 70 seniors
Great
All right, terrific
Well, any any other questions? Nope
Then we will call for approval
A motion to approve item C 7 or excuse me, 8 C so moved
Great spin
Move
Seconds, Krisher, great work
All right
Second it
All those in favour please indicate by saying I by all those opposed
Nay
I have it
Thank you
And Sandy, I think we'll see you at APJ next week
OK, great
I'll see you there
Congratulations
Agenda item A D authorization for the executive director to increase funding for the interim West Side Fire Station design build contract by three million six hundred ninety seven to 303 million six hundred seventy nine thousand dollars for a new total project cost of nine million one hundred seventy nine thousand dollars
Commissioners, I recall being on the site on the west side of the airfield with Commissioners Fellowmen and Steinbruck
When we first encounter problems with providing proper accommodations for a fighter for firefighters with this authorization, accommodations will improve from the substandard arrangement of disconnected rooms to a new cohesive space of thirty five hundred square feet for our firefighters
The project management team as we go forward, this is the third time I've brought this before you has acknowledged in our discussions missteps in delivering this project, including couple starts in different directions, I would say
So with that, I appreciate the forthrightness of the team and looking at this
No program can ever be perfect, but we really have to work to identify the lessons learned and incorporate them into our future projects as we move forward
You may be aware of my effort to begin overhauling the port
Port wide capital delivery process
And if you if not, you're gonna hear both more about it this afternoon
But with this authorization, this will improve safety via a quicker response time
And it really points ahead the definite way to get us to where we need to be, because we now we know Wahhabi with the completion of this project, will have adequate fire stations on both sides of the airfield to meet the FAA requirements as we move forward
So the presenters this afternoon are Sean Anderson and Randy Cross
Great
And before you get started, I just wanted to say we all know how essential this project is and we've discussed it several times
And I also want to say that none of us want to see anybody fall on their sword about the increases in costs
But we do need to identify what went wrong
We don't make the same mistake again
So just level set it there
So thank you very much
But we know this is essential
Yes
Good afternoon, commissioners
MR metrick, I'm Sean Anderson and I'm the program leader with Aviation Project Management responsible for delivering this project
This project has gone through several iterations and it is located on the west side of the airport airfield
And back when this project was first created, we were looking at making improvements within the existing at PACCAR building at the time that warehouse our facility and adding another truck shelter in order to accommodate the two crews necessary for that site
And since that time, the project has now become a separate building from that pack our facility and offering both crew quarters and apparatus space for two vehicles
The
Let's see
And last May
You know, we were in front of you requesting authorization for to use the design build alternative contracting approach to deliver the project
We report recommended this approach in order to provide greater innovation and flexibility by leveraging the expertise of the designer builders
Since that time, we have advertised interviewed candidates and selected the most qualified proposal which figures into the cost increase you see before you today
That design build team has given us a firm fixed price proposal that will form the basis for the design build contract
The additional three million six hundred and seventy nine thousand dollars includes the additional cost of this proposal relative to our previous estimates, along with additional sales tax contingency and appropriate ports
So soft costs in looking at the cost increases, the the majority of our cost increases really fall within the construction
I would say that in our previous efforts where we were looking at building and installing a modular building system, that that really constrained the the the actual design of the facility now that we've been able to sort of liberate ourselves from that and actually use the expertise of the design, the winning proposal, we're seeing the slightly larger facility, but a much better design facility
And that accounts for the majority of the increase in cost
We have looked at our soft costs are pretty level
We have had some sunk costs that were wet that we spent on the first efforts that will form part of that increase as well
And the other thing we have done is increase the project contingency in order to ensure that we don't have to come back here again
But just to be clear, this is still an interim facility
Yes, this is still an interim facility
The
Let's see
Should you authorize this budget request today? We'll complete construction by late next year
Looked at looking to occupy the building before this, the end of 2020
We have now begun work on important site infrastructure improvements that we needed to get started during our dry or season conditions to have in order to have it ready for this building, which we will plant
We are planning now to start construction early next year
We are looking at the long term plans for that parcel of land is really part of the sustainable airport master plan near-term projects
But looking at where this building is sited relative to what those future plans are, we do we are growing confidence that this building has a longer potential life than we first thought
So the right now where it is cited, there are competing uses that some of which are much further looking like they're much further in the future before they would require the space that this building would occupy, where the where the plans are for the future, more permanent fire station will not impact this location
And so this facility could continue to be used beyond what we may have, you know, what we had earlier articulated as a much more limited life
It really depends on those long term goals, but certainly greater than the three years that I think we had articulated earlier
And I think just add to that to the interim use living, you know, as opposed to just a short lifespan
It also depends when we can get the projects and when we finalize the projects for sampan if, if and if and when those projects go forward
So this you know, when you build this, I've I've been in my experience, I've been in temporary buildings in a long time
They've been there for a long period of time
So so anyway, so with this, I think it gets us to a level of a level of a building that accommodate our firefighters for however long they have to occupy it
So that's that's an important thing for me moving forward is getting them into this building as soon as possible for however long they may occupy it
In in the diagram, you show a little cut off here, but in the current Packer Erdan, the current formulation, we are occupying part of the pack
Our building that would be vacated once this is built, while we recoup some revenues from that and being able to lease that space out
Well, that that is space set
We are leasing from zakhar right now
So an expense
Yes
Yes
Total revenue we get out of PACCAR is one hundred thousand dollars and we're paying them back some
I'm sorry, you're getting
That's a question I did
I did
I kill observance
That's there
Now, we are looking for the long term plans as we go forward with our plans
The rental park car building is
Chief, were you gonna jump in here? I
Yeah
Whenever it's convenient
Go ahead
I want to thank Shaun for giving an overview and then good afternoon
President Bowman, Commissioners and Executive Director Metric
Thank you for the opportunity to speak today
I'm Randy Cross, the fire chief
I'm not going to going to detail of the efforts that have taken place over the past four years
But I do know that everyone involved is always place the comfort and safety of the firefighters at the forefront because of the delays of this project
It may not seem like this, but we know it to be true from the planning team, the consultants
We have worked with our leadership and you commissioners, we know you care and are looking out for the best solution to accommodate the firefighters needs
The men and women of local 2:57 have been very patient
In regards to this project and we all appreciate the efforts being made to accommodate us
Again, thank you for this opportunity
And I ask on behalf of all of us that you support moving this project forward
And we'd like to end with two principles that I believe most important, and that's communication and teamwork
We've gelled into a cohesive team and our communication amongst the team has been open, honest and respectful, which allows me to stand behind this effort and on behalf of the entire fire department
Ask you to approve this project for the greater firefighter and airfield safety
Thank you
Thanks, Randy
Any other questions? MR Stamper? Yes
Thanks
You're finished with the presentation
Yes
So, first of all, I'd like to ask
Well, noting that this project began at 2.4 million and the original estimate
I don't know when that was, but it's now 400 percent over that
And we've spent close to a million dollars in soft cost, primarily design
Is that correct? And yet, yes, we've spent close to eight hundred thousand
Okay
So is that money that money spent there basically not contributing to the new proposal? Because the new proposal is designed
Built
So what happened with the 60 percent design from that? That that money was spent on that
So the design did inform how we would move the project forward
We used it as a to develop our basis of design
There are portions the utility work that we are now undertaking was part of that design effort as well
And so we are making that use of it as well
What? What I was looking for in the briefing, memo and presentation was more details as to how a break breakdown of costs here, basically, which have not been really provided other than the fact that it has escalated and that we've spent up to a million on design
I think it helps to understand better how we could have gotten from hit from there to here with a little closer understanding of the cost escalation
And as Commissioner Bowman opened with comments about how we all fully understand and appreciate the need and the need for timely and efficient delivery, as part of that, we have not had timely and efficient delivery year
We've had a series of missteps
And it's still, for me, somewhat inexplicable how we could have taken this much time
We could have had this built by now
And that's hindsight better than foresight, of course
But still, that's that's just a fact
And so
So what I'm hearing is that 60 percent design, which is a substantial level of design accomplishment, but primarily it's just now it's not the same project that it was under the previous
Is that correct? Well, the 60 percent was part of the modular proposal
It was a book or play on the structure facility, the utilities, all the rest of the shed
The parking, you know, the truck garage and the rest of it
I would characterize it the way you see under the new improvements, the building looks entirely different
It's no longer constrained, for instance, by the modular nature of its construction
You know, we would have to have had built it according to a modular dimension which limited how it would be designed
We're we're a little more free with that now, but we're still have two apparatus bays
We still have room for two crews within the facility itself
Yeah
Okay
Well, that hasn't changed to feel that that million was more or less squandered
We could have, you know, you know, that has
And through these various series of redirects and again, the escalation in costs, I guess it looks like you've got a sizable contingency, but you haven't provided the numbers there
You know, simple, basic, you know, cost projection that shows, you know, where those costs have grown
It would be helpful to understand this project and how we got where we are today, but it's just not been provided with the materials
So I would hope that we would seriously understand and review what principles of project delivery need to be improved upon through this exercise, this expensive exercise
So part of that, if I can jump in
Commissioner, I understand what you're saying
And I think if you move to the to the appendix in the presentation, there actually is the lessons learned of the actions that were taken and then the improvement in the lessons learned that we have from this process
And I think it's kind of laid out there within those and these are things that we incorporated and identified
And I think just to go back to the expanding of the building back at that time when we were limited in, as Sean has said, the constraints, we actually were approaching that in order to try to meet the the the portability of the that the building that could be moved, a concept that was really constrained to meeting the needs, the firefighters there
And that became obvious that we're not being able to meet the minimum needs of this building
So then we went back and that gave us an opportunity
We knew that we had gone down that road and we had to retrace our steps and there were costs
We tried to cooperate as much as we can within the process here within that
But there's a we've learned the lessons from that and we've talked about that at length before of that
That is one area that is not listed here, which is project delivery, the procurement method itself
We undertook this initially with a fair amount of in-house staffing that perhaps missed some of the critical aspects of site plan, site design, logistics, things that a contractor is going to know much better in that regard
So and you know, part of that from as a really a serious lesson learned for me when we started and I showed you that slide of the early iteration of the project when it was within the building itself, we assembled a small team to assist with that as the project expanded into a newer iteration and a building outside
We didn't not read, go back and reexamine to see did we have the the best team available to assist us with that? And that was something that in hindsight we really needed to have done anyway
Thank you
And just to add to that, I think one of the lessons learned and when you can don't jump in here if is one of the things of the site where it was
I think underestimating the team at the beginning was underestimating the complexity of working with the FAA and the regulations that were in place in that site
And I think that's something that's reflected now with our discussions with the the builders that bit on this
What's the contingency built into that? Into this, too? We've got, I would say, close to a million dollars worth a contingency, roughly
It's relatively confident
We're not going to see scope changes and change orders and data
Yes
Yes, yes
Right
Indeed
No, we did
You know, we took a very deep look at the different teams that we're proposing
I think we
Selection committee picked the best team, the best proposal
And it also was the one with the lowest price
So we have reliability
Now you're saying I feel much more comfortable with that than the delivery date is when right now we will be occupying this building in quarter four of next year
One last January
Thank you
Is why is the percent minority women on business utilization below significantly below? What are our target goals are for the court wide achievement at 9 percent
Part of that is based on the type of work and what was available
We did an analysis of the different types of work available and looked with our diversity and contracting team as to what different firms were able to also participate on it
We then made that
We presented that to the different teaMS They went out and looked in the marketplace and that was what they were able to find
MR Fellman, I still don't know why you wouldn't just set the goal and being what they come, you know, following that point, set the goal and see how close we can get to it rather than, you know, play to what you think is available
It just seems like we still have the same goal of achieving the women minority owned businesses
I see
What is the blue line circumference around the pack? Our building that doesn't include the whole space
It's the first slide in the appendix
OK
Slide five
Sorry, I'm trying to read
Ok
OK
Well, what this is is an overlay of the site photograph with the design document placed on top of it
The drawing in AutoCAD
And unfortunately the two of them don't exactly line up, but that's really what that's meant to be, is just the outline of the building to be the same
It should be the same
Unfortunately, the two aren't precisely aligned right now
So again, since so the the overall design, I mean, this could be done in a year
The hopeful life lifespan of this, assuming everything goes right, is three to five years
Yes
If not longer
I mean, this certainly could be longer, it's just what it's going to be, that is you that you are part of that depends on that permanent fire station being constructed and ready for Occupy
What is expected to be in this place where and, you know, associate with that footprint of the of the temporary building? Yeah
At some point there is a plan to build an additional what they call an end around taxi lane or a taxi way that would require that space where that building is, which would also include the park, our building to the year before that is starting to get over my knowledge level here
So I apologize
I don't have an answer
I mean, he doesn't want to jump in
Yes
Thank you, Commissioner
Commissioner Prison Boman Commissioners and Executive Director
metrick Wayne Growth here
Director, Aviation Project Management
The Integrated Taxiway
Just to clarify
And that that is part of the Sustainable Airport Master Plan
That is not a near term project, meaning it is not in the first 10 years of sustainable airport master plan
So this building could be used for quite some time
The other item I'd like to address, if it's timely now, is lessons learned
I know we've talked about that several times
And as as noted, one of our ways to ensure improvement in project performance is to ensure that our project managers learn from the experience of their peers on other projects
We require project managers to review lessons learned from other relevant projects during project definition, require them do that again
If there's any significant change to the defined project, require them to do that again before they contract for construction
We've also begun reviewing key lessons learned as part of each staff meeting of aviation project management so we can review those as a group
And finally, as executive director metrick noted in his e-mail this morning regarding organizational realignments and initiatives, making capital project delivery more effective and efficient requires the efforts of every single port employee
To that end, we will also be bringing monthly lessons learned
Some reads to all the airport directors monthly at our project oversight meetings
So we are trying to get that word out and increase our efforts to get that word out as to both our good and bad experiences so that we have that collective learning
Wayne, thank you
So of the costs, I would imagine the aft side of it is a smaller portion of the cost of the overall $9 million dollar expense
Or is it about half the space? But I would assume it's not half the costs
Do you mean the the apparat? So, yeah, yeah
I don't have a precise breakout of that at this moment, but yes, I'm just wanting you know, it doesn't seem to be a very technical space
I mean, living quarters can be very specific and insulated, all that
But why can't we just park cars in the park, our building? Actually, actually, I mean, it's the
You can't
Well, right now, we don't have to use the building, number one
I think number two is that the actual the actual entrance out into the response times, which we studied in depth
China is spending nine million dollars
We can't put in another garage door
I mean, it's like at this point, if it's a temporary facility, we have a parking garage
What is the what's the what's the rocket science here? Because they're not located, because I can tell you right now, if we build this building and then the responders, I mean, there's so many different things you have to go into that
It slows down the response time
I can just tell you right now, the response time wouldn't work there
That's if we had access to the packed car building and if we were parking them
My understanding was you'd have to put in a different garage door
You'd have to oriented at the other side of the building and on the surface
I'm right with you tracking the very, very beginning
But we've had consultants look at it
We've had our own internal team that does that
I was right where you are, MR Fellowman, at the beginning
Why can't we just punch a couple holes in the north end of that building and we use that for our space
The consultants say it's not feasible because of the structure and the way it's designed, that there's a lot more work to rehab and refresh that building to meet our needs, probably in excess of what we're spending to build this facility
Well, my other thing originally was I was exploring, you know, moving the whole facility into there
And that posed all sorts of challenges about concurrent use and all that other other thing
But it just it struck me to build a temporary facility for just the vehicles and knowing that other forces need a place to cover for covered vehicles, heated floors
I mean, it's a pretty spectacular space
I don't know whether the design question was really asked just for a garage instead of a facility for inhabitation as well as a fire truck isn't like a regular car
Yeah, it's amazing how it is more than enough as they've been
I think it's kind of difficult for us to try to engineer a build in base and does was soon there because apart from the structural changes that chief talking about is not easy or feasible
Does it change its structure? Coal points a building
The second most important thing is that in addition to the horizontal constraints I have from the facility, that location is at the end of the
We have also vertical constraints of God and your space utilization
So to look at a simple joint at this and try to engineer it here is difficult and complicated
And that's one reason why this project went from 2.4 to 10, because we tried to come to the estimate to understand what the challenges were
And for the simple route, it's a difficult challenge
Inside the same time, we have to ensure that not assuming the outcome of this sum
But we have to ensure that facilities that we're built is aligned, is an alignment with future plans
So it's very it's very, very complicated, not easy
And I think if we tried to engineer this content, to engineer this building, begin and spend more than 10 million dollars in
One of the lessons learned that you pointed out was that the firefighters should have been involved in the beginning and not at the end
You're the ones that can tell us best
And I also want to just that issue that was raised earlier regarding Wimberley
I'm very involved in the setting of goals for your pet projects
munin an arrest myself
Some projects you get lower than the average
Others get above the average
What we do, we'll look at the what's called the code and the availability of contractors in the area
This project is very unique and doesn't lend itself to the wimbish process patient
All the projects we can go over the course, for example, tax we're project
Last year we achieved 90 percent, which is up over 13 percent
So in our average, we're aiming for a 13 percent higher and some lower and the others
Thank you, Jeffrey
OK, any other questions? MR Caulkins, did you know? All right
I'm trying to make sure we don't do anything else
OK
I would love us to just go to this library, actually
Yep
So we're gonna go back to just a slip of the slide of the lessons learned
Can I just make a comment in reference to the firefighters be involved? I want to recognize Union Vice President Chris Nuttall in the audience
Him and I are on the selection committee
So Chris has been very involved
And I think what comes complicated this in
I'm the customer, just the fire guy
I don't understand all the complexities of all the other stuff, the minutia that goes along with this project
But I think we definitely got out ahead of ourselves in temporary
I mean, you heard originally we talked about temporary, temporary, temporary, and everyone was trying to satisfy those needs of the firefighters
And every step along the way, there was too much compromise
And we go back to quality of life and sustainability
What we have here, once things switched in, in hindsight, going back from the beginning and starting where we're at today would have been amazing because really under Shawn's team, the program was actually developed and written out
And that's what we've been working to since that program was developed
And that's given us this particular product that we're very proud to say
We'll meet the functional needs and safety measures for the firefighters without access, to be honest with you
It's gonna be a nice building, but there's not
It meets our basic needs for whatever period of time
And so as the fire guy
I don't want to misspeak
But with with the master plan in place and all the other complexities downstream, everybody's afraid to say, how long is this use and give you a set number
But we feel pretty confident that we could be within that facility for a significantly length of time, because there is there appears to be at this time no conflict
I can't commit to that
But there appears to be no conflict
And the potential for repurposing that space is definitely there into the future out until the only conflict that arises is way out into the future that I can't see that far yet
So but that's just all I'd like to
Michigan yet? Maybe to Steve, I'll let anyone answer
I appreciate all the entire conversation and I appreciate the company we've been having for a while and I'm glad we're to space to move forward
I just care that we're learning lessons that don't applicable to the next fire station
And that's what this slide reflects for me
And I take a step back and say, I think we've learned much broader lessons and I'd like to hear those in terms of how they pull forward beyond this project
And I'll add to that, I mean, what I identified in this is that, I mean, we have systems challenges which led us to where we are not just against specific to this project, modular versus not modular, etc., etc
So if not, I know, Steve, that you were intending to do kind of a final action report on this and give us more detail
I don't know if you are prepared to do that today, but I think it's an outcome that we need
Well, I think I'm anticipating we're going to approve this
But that said, we do need this is a a case study in how we do things differently
And please don't get me wrong
I mean, Steve and I talked about this several times
And at one point, you know, there's conversation
It's just one project
But this is the commission that at least two of us lived with the IMF
And so, you know, we've got the fire station on one end and the I.F
on the other
And so we need to feel more confident about the systems that we have in place as we're designing these projects
And I will go so far as to say I wanted to write today, but this memo is not acceptable for me
The memo that we reviewed in advance of coming in here today in this PowerPoint slide is not acceptable for me
You own up to mistakes and you document how they will be improved for the next project that is called progress
We will support this
I'm sorry
I will support this action
But I don't want to look back to the next commission and have this memo be what's attached and say, well, well, I don't know what went wrong in that project
That's not acceptable
We document and that's how we improve
We learn that way
I will load up when I make a mistake
I expect this team to be transparent about that
And there were many mistakes that led us to today
So that was my concern with the memo
And the way the presentation has been been today does not change my desire for us to move project
But I'd actually prefer that a different memo be filed for the record
So commissioners, future commissions can learn from this
And Steve, you in a speech such as in terms of your plans for a deep dive into this
And yes, we have
I mean, this is a summary of the improvements in MR Gregoire
Go back to these improvements
These improvements are brought there not just for building a fire station, but these are definitely part of that
You know, the complex, the lessons, you know, of making sure that the end users are involved
And I think that's one of the steps we took already is to take CTD and break it within the operational units, eliminating one of those seams already between the end users and the the construction progress
I mean, that's a primary one that we took in advance in advance of this going forward
So here's where that's not very applicable for me
I go back to the north satellite
This can happen
Good luck, guys, for us
Three months of my tenure
We had the end users, too, involved
We had change orders every three weeks
So the commission did not get adequate information as to understand why staff was making changes at the request of one airline
So I get why for our firefighters were we don't understand their operations and their needs
They should absolutely be there
But what is what does this actually mean in practice? It means more than a box on a PowerPoint slide, because the commission needs to have the ability to understand how to ensure that we're doing this at the right level for it, for whatever capital project we're talking about
So that's where I struggle with, because to me, they are written right now recognizing the lessons we learned from this experience, unique to what it means to have our firefighters at the table and understand the operational constraints and needs at the beginning, but doesn't apply to every capital project
Otherwise, we're gonna have a NF experience
But of course, this of course there's
Well, I think you're much more at risk of I understand completely of that of the, you know, saying is that it's open ended, but then you don't have them
I would say in that case, if you're not if you're not responsible for it altogether, then you don't have just you're you're not responsible for the building of it
You're just really responsible for the requirements
So that's one side of that equation
If you're responsible of both sides, you don't just have oh, what do you want enforcing on that? You have to balance it with the cost associated with it
And that's why I think what we're going what we're doing going forward puts those two together
Commissioner, just on that one specific example
I mean, this is complex
We want to build the best capital delivery program that sets the standard for this
And I know this is, you know, the complexity of this operating in environments that we operate here within the within the airfield, in spite especially the closer you get to the actual regulated area of the FAA, the more complexity
And I think that some of these things and I've learned a lot from this as well
I have to say that right up front from this is my first project are brought before you
And I'm hoping we're still not discussing this, but two years from now of this project, because
Because this is one of the ones where it's a small project
But there's a lot of lessons learned wedged into this
Commissioner, and to go back, if I could just help with this conversation and we need to move on, I'm sure
But the roll of the end user in this case, the firefighters who know best their practices and profession comes to play in the building program and its functionality, the construction and logistics and code requirements and challenges on the building on an airfield are beyond that range
And so it's a balancing act
Yes, you need to have the end users involved in those two areas
And I've seen also in public works where the end users were not involved in all kinds of irreversible mistakes were made in the final plans
But in this case, I think we've gotten to that point where we've addressed the needs functionally and serviceability of this building and the complexity is not in the building program
It's a simple building program
As I read it, it's very simple
It's the logistics and the construction challenges of the site
That's all I wanted to do
And then we are going to move on
OK
And you get seconds
I I have nothing against Packer
However, it is a unique asset, the only private asset on a constrained airfield
And it's a year to year lease
And from what I understand, there are other assets that are not well protected that we have like the bomb machine
I've seen I've seen other assets when I got my tour out there that we have a state of the art garage right on our own property
And I'm just wondering
So throughout this whole process, their lease does continues
And it's the same old without us looking at the strategic deployment of all of our assets, not just our firefighters
That's a great place
This has been always a question when how will that facility be looked at in the context of this construction? I haven't told you
It's gonna be looked at together, but I'm just told that it's now it's just not possible to have anything to do with each other
So that's a question that Steve needs to answer
Sean is not that's not what he does
So we need to have Steve answer you directly
Ok
All right
Yeah, yeah, I'm Paul
Do we
We don't yet
Yes
Please
Thank you
Make a motion
Could I put a motion on the table, too, for commission authorization for the executive director to increase funding for the interim West Side Fire Station design build contract by three million six hundred and seventy nine thousand dollars for new total project cost of nine million one hundred ninety seven thousand dollars with a lesson learned and after action report by management due to the commission by October thirty first twenty nineteen second rate
It's been moved and seconded
You do what? Yeah, yeah
Yeah
She wrote it down
Excellent
All those in favor please indicate by saying I I
All those opposed any eis have it
Thank you
Thank you
OK
Go forth and built with that
Let's take a quick five minute break
Sorry we kept you guys so long
Thank you
There are no fires out at the airport because they're here
Madam President, Madam President, if I may, just before we before we recess
Yeah
Because of our rules relating to a member of actions once the agenda has been approved
What I believe we want to do is show that as an amendment to the action request that is approved without objection
Yes
And then approved the whole thing here
Ok
Thank you
Otherwise, you should do help
Right
So quick, 5 minute recess and then we'll come back at 2:15 and tackle the maritime budget
All right
Good afternoon
This is Commission President Stephanie Bowman reconvening the regular meeting of our two days
It is 8 8 8 October 8th
Back to order
The time is 250
So now we're going to go ahead and we have a little bit
We had already approved a reordering of the agenda
So we're going to tackle item 9 B
And then we're gonna go into the capital budget for maritime and then do 9:08
So with that nine B B 20:20 Maritime and economic development divisions, preliminary budgets, commissioners, this afternoon we continue a series of presentations on our proposed 2020 budget
At the last public meet, we presented the proposed Central Services Budget
This morning we presented Davie's Aviation Division Operating and capital budget
This afternoon, we're presenting the maritime and economic wealth
We just Commissioner Bowman just recapped what we're gonna do this afternoon
As I mentioned during the last meeting, the proposed budget is in line with our port strategies and is fiscally responsible and responsive to the needs of the region's needs and the nation
So I'll throw that in there to the operating budget you'll be reviewing today are driven by a focus on sustainability
These themes that you'll see innovation, customer service, safety and security
Orji Organizational effectiveness and equity in the capital budget investment plan, which we'll discuss later, which amounts to more than $3 billion over the next five years
In addition, with aviation continues, our commitment to investing in regional infrastructure, to grow our transportation gateways, create jobs and stimulate the economic development
Presenters are Stephanie Jones, Stebbins, Dave McFadden and Kelly Zupan
So we'll start with Stephanie
Thank you
Executive Director
Thank you
Commissioner, we'll start with the Maritime Division Budget
So we're here in on October 8
We've already seen a budget development briefing over the summer briefing today
We'll be followed by first reading and then the second reading by November 19th and adoption of the budget
So we're right in the middle of a process here
As you heard this morning in the aviation budget, as we look at our budget, it's it's not it's really about what we do with that money
So we have gone from this century agenda, looking at what our goals are, what the gaps are, what we need to do to achieve our goals and really built that into the business plan and budget
And in fact, we will see it in all of our individual employee performance plans as well
This graph shows really what our maritime priorities are
Of course, as we every day we're thinking about safety and resiliency, our financial sustainability and customer service, it's a foundation of what we do
But also as we put together this budget, we're really looking to the future, thinking about sustainability, thinking about innovation and equity, how we drive those things to make sure this is a business and industry that's relevant really into the future here in Seattle as we take advantage of the ocean economy desk
Were these principles derived from what sort of commission approved set of principles or just your working principles? Well, it's it's a combination
These do flow down from the century agenda
And then as we look at the port wide goals, really last year, they discussed formed this graphic in my mind
So it's a haunting
Yeah, it's just to ask again
They came from and I have thought about maybe one additional goal principle to add in there
You know, keep us in suspense, though
Can I just note that it's not because we're dealing with capital projects and we're dealing with the waterfront and the potential of extreme weather
I'm I'm repeating myself as I am to the north that startwith that our resilience and adaptation, resilience, principle in terms of incorporating into the design of all major new infrastructure and infrastructure replacement resiliency is the very foundation of this
You'll see we have it on the bottom there
And I think maybe perhaps we need to highlight it a little, highlighted a little bit more our principles
Yeah, I
All right
We've skipped ahead
Thank you
The material that was in the booklet is different than the hand-up that I was earlier
Are you looking at the CIPA doc or are you looking at the maritime struggle? Okay
All right
So the S.O.P
Doc is what was handed out
And memo we have is the budget that's inside the nine
What would that be? Is there a time in a._d._d? No, we're actually in the operating budget
So there should be a picture of a fishing vessel on the front, not a cruise vessel
Different thing that the cruise ship
Different
Okay
That's our capital budget, which will be right after this
Sorry
Oh, they weren't related until
Wait a minute, where is the screen aligned with what took
Ok
Got it
So I'm looking at this
Right
I'm looking at this right here
Just give me a chart or pyramid chart and focus on equity, innovation and sustainability
So as we think about achieving all those things until we have to do that is through our budget
In addition to achieving sustainability, equity innovation, we are also trying as a division to achieve positive net operating income, including depreciation by 2024
So that means that we pay for all our operating expenses, the share of corporate costs that belong to maritime and pay for building the capital that we use, really leveraging the cruise business and grain business
Those are the two businesses with the highest positive net income to support the fishing fleet, environmental work and local maritime small businesses
We also really need to focus on managing our expense growth expense growth to meet that target and executing our five year capital plan is also an important part of bringing new revenues in
News24 always been our goal
We
That has been our goal
Yes, it always has been
It's what we felt was like last year
It's what we felt was possible
Yep
So if we look bottom line up front, our revenues are up 5.4 percent and our expenses are up 2.9 percent
So our revenues are up more than our expenses
If we look at what's really driving our budget, the growth of Cruze is also a plus side on the revenues
And we're also looking at some expenses that support that
We also have costs associated with supporting that transformational capital plan that the commission approved last year
That includes both project management's staff as well as some planners, innovation and sustainability
You'll also see focused on in the budget as we go
Doesn't it also have to do with taking on those responsibilities? Correct
Is the re-alignment indeed it
Indeed, that's correct
Can I just ask, in terms of the cruise revenue growth, we had both an increased number of passengers and an increase in the rate
Right? That's correct
Yes
Of the two, which you think was the greater driving force
If we just kept the rate the same and had the same growth and passengers
So passengers were up
Let's see, it was the rate was was the bigger driver than than the passenger growth
Thank you
So overall, a strong growth in crews is really driving our revenues
That's balancing constriction elsewhere
We're seeing that our cruise revenues are up 19 percent budget over budget
We also see, however, that grain volumes and therefore revenues are down 18 percent
That has to do with broader things going on and what the port is doing
And then in our larger fishing vessels, the loss of our largest vessel is it's about 14 percent of our revenue
And we'll be we are looking to rebuild that over year
Over the years, we have many larger vessels coming on line, but it will take some time to do that
So it was announced that the Chinese are going to remove the tariffs on soy and remove the restrictions on soy
Do you anticipate seeing a bounce back in the grain? What we hear is that so we may
And what we hear is really the uncertainty has been it's just been very volatile
So we will certainly hope for that
We'll have to see how this works out and trade
Right
Because if you've had to replace that in your market, there's an opportunity that may not come back to the same suppliers
Can we
I mean, the crews revenue is always something that we've dug into, we did a little bit of work at the audit committee
So, you know, when we see things like the new gangway I see is one of the items that we're looking at for ninety one, which is seems like the second new gangway
Right
So we did one, we did not do one last budget cycle
We took that out of the budget last
But it's the same gangway
That is correct
OK, good
And then I never see the advertising budget as being included as a as a cruise item
And I see now the way it's being enumerated, it's being folded in with our other maritime promotional budget
So I say as I see
So we formed last year, we formed a division wide marketing department so that we could really see some businesses have a lot of pressures when others don't
And really, we wanted to have a more cohesive approach and able to bring on a senior manager
We say in a result of that was a very excellent billboards we've seen on a ballot bridge lately, for instance
So, yes, we are
We do now have a marketing department within Maritime that looks broadly at Cruise, but also fishing, recreational boating as well
So I was wondering, are there any of those expenses then assigned to credit? Yeah, absolutely
Yes, they would be assigned to Cruise
Mm hmm
That's correct
If we look at our expenses, they are up in within the maritime division, about 2.4 percent
If we look overall, including corporate expenses, et cetera, it's they're up just under 3 percent as we went through like the rest of the port, we really took at the guidance of the commission and executive met director metric zero based budgeting mindset
We really looked at everything
Do we need to do this? Can we take it out? So we did remove about a million dollars worth of various costs through the budget
Wasn't that mostly police? Well, in terms of the line item, was the police expenses were that million dollars is things we removed
Additionally, we did have a reduction in police costs
That's correct
But there was something about you recalibration, deployment hours
So you're going gonna get to that later
On letting Kelley answer questions
Yeah
Yeah
Now move to the next
Let me just let me go back to this slide for one second
I do want to note that we are proposing to add additional FTD to support a capital program, to support our cruise program, to support innovation
So, you know, we and we are eliminating three other positions that were unfilled to balance that out and reducing some pretty significant capital costs and bringing that work internal
So you will see that as we go through, you'll see that as a theme
Sometimes we look at the consulting, it's better for us to bring on FTE that continue to pay those costs for consulting
And that's something that will actually realize some savings in this budget and doing that
I see with the 14 percent reduction in the Elliott Bay fishing, a letter attributed to the ocean Phoenix going away
That's correct
Isn't the trend, though, to have these more efficient fishing vessels replace more than one of the older ones? There will be
There is a vessel replacing the ocean Phoenix
I think it will also be named the Ocean Phoenix
It will be quite a bit smaller in this case
In every other case, it has been a larger vessel
But that's correct
You're seeing these more efficient and larger vessels may sometimes replace more than one
So I'm just saying, as a revenue projection, we all are more efficient vessels taking out more bigger ones
It just seems to me that's that's a bad trend as far as
Ninety one in general, the fishing vessels are getting larger
The Ocean Phoenix was an anomaly in general
The vessels are getting larger and we are actually short on space there
As the cruise season gets longer, what we find is there is more of an overlap
So there is a period where we do not have enough marrige for both the fishing and cruise vessels, which is why part of the reason we are looking at our capital program additional berth space at terminal on day one
Finally, when you talk about ship canal fishing and operations, is that not just fisherman's terminal? It's Fisherman's terminal
The Maritime Industrial Center and Salmon Bay Marina
The whole collective negatives
Thank you
And with that, I will turn this over to Kelly Zupan, who is the finance director for Maritime and a._d._d
Thank you
All right
So on this slide here, you see this is the basic roll up
You can see the maritime division had a 24 percent increase in bottom line over the twenty nineteen budget
A couple of items to highlight here
One, from a cost standpoint, economic development growth was driven by tenant improvements at the A1 building on the Maritime Industrial Center
They're transforming the second floor, a twenty thousand square foot second floor into a multi-tenant building as we were to meet the demand
Additionally, you'll see maintenance costs went up and that is offset by economic development division maintenance costs
It's how we allocate sort of shared costs at Pier 66 and Terminal Ninety one
They had a little challenging for the maintenance people to go in there and have five different businesses in each of those facilities and try and figure out where to charge it to
So we create an allocation that would that would proportionally divide that out
And in the benefits, we're more seeing an economic trouble in the maritime
Additionally, the police recalibrated their deployment hours and that led to a slight change in the non aviation distribution between the Alliance Economic Development Division and the Maritime Division
And this slide, the one thing to note on the next slide here is it's basically the same PNL, but including the Terminal 46 Seaport Alliance payment
This is a $3.8 million payment
We're beginning to pay in January of 2020 and it will escalate at 2 percent a year for the twenty nine acres at Terminal 46
We expect to get revenue associated with that in 2023 when the earlier financials were done on the proposed cruise terminal
Forty six, the earlier find out pro forma, did it include this figure and the ongoing leaseback of that portion of the terminal? Yes, it did
It was we took it and we did it ourselves
We hadn't worked out the terms of that until recently
So I had to when I built when we built that one, we had $2 million because it's the sort of the incremental costs going in because we actually will get half of that format
And, you know, roughly $4 million back through in the form of Seaport Alliance revenues
So we looked at it
Right
We're paying ourselves in that line division of
Yeah
Yeah
I just wanted to know that we have considered that that was incorporated into the pro forma cruise
It was in the long term lease
Ok
But you you say here on page 10 that the payment increased revenue seaport lines, 50 percent protected
The return is not shown in this
Well, apparently the maritime division will pay the lease, but then the half that comes back to the port will go into with the alliance revenue
So they show up in different places
I tried to get them both, but that will show up in a different location
So it's all there is one hundred eighty thousand less than what we didn't initially anticipate
I remember it being a formula, you know, our number of times
Yes
I don't know how you did that, but congratulations, Dan.
Work that one out
I'm not sure
So
And and so and the next slide here we're looking at this is the basic trend of the maritime division
You see this does incorporate in the pattern that mitigation are that payment of the Sea Port Alliance
We're continuing toward our profitability goal
And again, once we see that incremental bump in 2023, which is before our 2024 target, we should, you know, bringing on if we get one sailing, it's going to be close to break, even if we get to net new sailings out at forty six
Then it becomes it's going to add to our profit
Next, as you can see here, next slide is the crew's financial
Still the most profitable division in the part, even when you factor in that $3.8 million payment
What is an eye on the cruise currently? It is
That's it
Not see
Any idea? Yeah, actually, I didn't
You know what I did? Could
Could we? Could I follow up later with that? And also with the anticipated future projections, with the additional cruise terminal? Absolutely
I mean, you're lucky
It's roughly three to four million dollars on the side
But, yeah, I'll I'll get that
You can see that
And, you know, via the revenue over the costs there, including depreciation, it's about 4 million bucks and including capital investments
Yeah
We use depreciation, which is the dark blue color
Because you're out of the capital investments amortize the terminals at 20 years or what order they amortized at the LA terminal
Any one was 20 years I believe
And the plan is for forty six to be 20
So isn't it
We haven't
Well I leave that up some well
And somehow or in order to understand the the financial aspects of this you need to know how what what the amortization rate is on the capital investment
Well usually you take the investment in year one and the total amount and then you go up based on the cash flow
Yeah, it's a pro forma basis
But yeah, I mean, that's a good point
I'd like to understand a little better
Okay
So when we come back with a presentation on that on the terminal 46 crew's presentation, we will project
We will include that
Yeah
Oh, thank you
I always like to hear about jobs also and associated with these activities
Whenever you have those figures to show, you know what jobs are supported directly and indirectly
Great
Well, I can tell you that this industry today supports about fifty five hundred jobs
And currently so as that goes up, it will increase
Thank you
We will include that in our presentation going forward
But Commissioner Stamberg's point is, as you're going for each of these different they're not divisions, but recreational boating, Dahlia Bay, Ship Canal
To be very candid, this is way too broad
We need we should have more a little more detail on these slides as opposed to just here's your revenues
Here's your expenses
That's what I mean
Okay
Okay
So detail on the specifics of our revenue and expense
Exactly
Cases
Okay
Again, here are the revenue
The revenue increase was driven by
We went
The increase, yeah, the tariff increase
And then we
There was eleven eleven additional sailing's about 100000 passenger increase the costs
We actually kept
It's harder to note as well because I get it because of the three point eight million dollars sort of drives the bulk of the expense growth on there, but we actually reduced consulting costs over almost seven hundred thousand dollars
And that was one of the major pieces of the costs
And that's great
That's the sort of detail
I think that's what we'd like to see, you know, exactly what are we where our expenses
What are the revenues? What are the opportunities? I mean, as we saw with the aviation budget, you've scrubbed it through
We understand the trends
Great
Okay
Will do
Thank you for that
Well, I have a question about really the potential for growth in crews
You know, I was just wondering how we looked at what Alaska's capacity is, because that's one of the things I think the I think the desire is insatiable
I mean, I've heard the consultant reports it's a small percentage of the overall vacation travel
But, you know, when I see seven cruise ships in Juneau at the same time, at a certain point in time, there's not only will Juneau not tolerated
I don't think the public will see that as a getaway
And so I'm just wondering, has there been an evaluation? We say one trip, additional trip as a and it seems to me that people the terminal
I mean, it seems to me they're going to probably want to treat any trips in there as possible
And that seems to be a very modest assumption, which is good conservative budgeting
But I'm I'm just wondering what what would be the ultimate what would be the maximum bill that you could expect given the capacities in Alaska? And so that that's going to be a homework assignment, not an answer today
I don't know
But I mean, I think in the course of what is the problem, what is the potential payback on this kind of an investment? We need to kind of have a sense of where it was, where it's going to asymptote
The other thing is, in light of these other expenses, you know, there's a proposal here
We'll spend 16 million dollars on electrification and it just seems like an assumption
And I've talked about whether we're going to share that cost and let's good luck
But that's a no no
But I'm going to cut in here
We need to let them get through these slides, because you're jumpy, because I want to be able to answer questions about their questions
And that's where we're get their crews here in a minute
So
But there should be a reputation
We'll we'll tackle that when we get to that slide
So they'll answer your questions
I want to hear it as we go into more depth than the S.O.P
Briefing that we're gonna have as well on air
So this is the operating side of things
And then we're gonna again do capital right after this
So
And so recreational boat boating goal is to basically pay for itself
You can see where we're getting closer to that
Revenues went up about just under 5 percent this year, kept expenses flat
A lot of this was decisions made from SAP
And you'll see we reduced a couple of positions that had been in the budget that we didn't carry forward for for my colleagues
I've asked for a briefing on the recreational boating just cause we realize we haven't had one at least a year and a half
It's been quite a while
I think it's its since Commissioner Corkins and Steinbruck joined the commission where we did sort of a deep dive
So
All right
I know that's coming up some time for you, I think in January
I believe that's when we're scheduling it
Yes
And there was a question in terms of the profitability of Salmon Bay and whether this showed any bump or decline from additional Salmon Bay
And we've been increasing the rates at shealso
But we have more expenses at shealso
So I always wanted to see some sort of breakdown of the profit, really, of individual marinas, given that we're really in the marina business in the majority of what the numbers you see in front of you here relate to the majority of it is really social
Bay Marina is what is the driving factor in what's here? It
It's definitely the most profitable of the three marinas by far
Elliott Bay Fishing and commercial operations
This is where you see the impact of the Ocean Phoenix
And additionally, we additionally the Navy vessel from seafair, we typically get about two hundred thousand dollars a year and they had canceled their deployment here for next year
The expenses went up primarily related to keeping the expenses went up, primarily related to security and maintenance costs
The security being the new the contract that's going to be coming up here as well
We expect that to be a little more expensive than the existing contract and just break out of our projects for maintenance
And ship canal operations, this is again a maritime and maritime industrial center, fisherman's terminal and Salmon Bay Marina
And it is kind of growing
Normal, normal standard
We're looking down the road
Some of the big initiatives here are getting the innovation center up and running and some of the redevelopment fisherman's
Somebody may put a little more specificity on my request
I'd like before the end of the week detailed information on these different budgets, because I appreciate that you're kind of calling out selectively some of the factors
But the whole point of this briefing is to do a deep dive into these budgets so that we understand it
Before we get to budget adoption, we can provide specific feedback
So it's challenging to not have the budget in front of us and just get the top
Understood
Understood
You know, when I started this job, we used to just present the maritime budget as a whole, not broken down between the different business units
So we're gradually moving in the way
We have not yet hit the point where we've gotten to the detail you want
And so we will we will provide that by Friday
It's a lot more than we used to provide for, whatever that's worth
And sometimes one of the challenges we have here is we're presenting a sub class budget
So there's so many costs allocated in and out and I used to put the allocations in
But we have to make some system adjustments because of the way we've reallocated the costs
It it becomes more misleading
You know, it's one of those balances of if you put too much and it starts becoming misleading
But we do have the details out on our SharePoint and I'm okay
I'll definitely share those as well with you
And I respect that tension
And I go back to a previous comment made today
I don't want to know the cross charge allocations with internally
I do want to understand the overall revenue picture and the overall expense pictures for the line of business right now
I'm sorry if I'm asking for a different document than is the internal cross charged budget
But in my day job, I have to do both of those things too, because I got to know the actual inflows and outflows, which is what we need for visibility
You got to do a bunch of cross charging across your organization that I have to say is internal management
And I do not think as commissioner visibility, but we need more inputs and outputs
So just to be clear, when what we provide you, the numbers that make up those columns in front of you, the green, especially the green one that will be made up of the costs of of our teams that are out on the ground, boots on the ground at Fishermens that shows all that
It also includes our costs from human resources and external relations and the commission office and the police
All of that is what makes up the green
And that will be included in what we give to you
Consider us a cost benefit as well, I'm sure
Yes, I think that's the quickest answer
Yeah
Okay
Thank you
But yes, we didn't even know that that
That's right
You're right
I think it's perfectly reasonable
If we're going to ask you to provide us all this information, then you get to quiz us on it after we consume it
So I look forward to that our way and if we don't do our homework
So I gave Commissioner Fellman the full detail file a couple years ago
And there's nothing there is about 12000 line items that float through this next maritime portfolio management
Again, you'll see the revenues are flat here in part
We expect these to go up in twenty two
We expect to have in 2021 a big lift in revenue with associate with Terminal 1 0 6 Groundlings coming online
And also we expect that 2020 to pardon me
And then next year, after we get done renovating the A1 building at the Maritime Industrial Center, we expect that to help drive some growth as well in revenue
But for right now, as that's under development and one or 6 is under development, we've got relatively flat year on year growth in revenue
And then a grain terminal, we reduced revenue due to feedback from Louis-Dreyfus on our forecasts
Its its charm, most of its charges from divisional charges and allocations, there's not a lot of direct expense that goes to this
It's how we allocate it based on revenue and expenses
So it's it's bit that's basically how we allocate to all of the business lines as we look at it in a revenue basis in all of our costs have to show up to a property
So
So given that this is typically been a revenue generator, it gets a little bit more of the allocations despite the costs being fairly low on the terminal
So just a couple of the groups that make up the big share of expenses is a Marine maintenance budget, which this is just one to one demonstrating with this slide, with this pie chart that the marine maintenance costs are up and they are supporting, of course, maritime, but also the Northwest Sea Port Alliance, Economic Development Division, Stormwater Utility and others
So while it's a large expense, expenses are up, it's supporting a lot of different divisions
The biggest part of those increases is just that there is a 4 percent increase in labor across labor costs across the board
So that that's maintenance costs additionally
That's right
In our environmental programs, we are actually we'll be adding to FTE in the environmental team that supports maritime
They really will be offsetting costs
Consulting costs
So we expect actually to see the outside services go down and staff expenses go up
So it's really about flat
And we will be supporting a number of new set, new bringing on those two
Fte will allow the environmental team to support new priorities in sustainability or a recovery focus on cruise enviromental
That's something that I've wanted to do for quite a while and engagement in the Duwamish
So bringing that expertise in-house so we can really build that support for those programs and yet not really increase in the costs because the reduction in outside services
So the allocation of when I asked about the South King County Fund, whether it be allocated to the airport goes to corporate
But the dwarfish engagement we have in maritime and not in equity diversity
So we have said this is some staff time that will be supporting it
But in external relations, has that the majority of that in their budget? As well
Yes
MR George at all? I don't know, it's this
Well, certainly Georges can't put a price tag on that
But I actually am perhaps he can speak more specifically to what those costs are
OK
That's OK
And as I mentioned before, we are including several new staff positions
There are three positions in project management
So it is noted that this is a transfer to us
But additionally, to support the capital program going forward, there are new positions proposed, including more scheduling expertise
A person does focus specifically on that as well as project management
We are over the years, the planning function and the maritime division has has has been reduced quite a bit
When I started at the port, actually, we had a very robust planning team
That's how I started here
We had, I think, six folks
And over the time with the smaller capital program, we that is something that we've just little by little eliminated with the capital plan in front of us and the growing businesses
It's as well as a land use impact
It is really a function that we have a great need for us
So we will be proposing, proposing, bringing two planners on board we with the cruise cruise business
Even with its remarkable growth, we have had two people, two full time position people, us supporting that business for the last 20 years
And we're really at a point where we need to increase a staff person, their significant operational demands as we look at things like storm water, best management practices, all the ins and outs with with vessels coming, there's a lot for our team to do that we this will really enable us to do what we need to to support the business and our responsibility as the public landlord
And finally, we will be including a continuous process improvement person focused in the maritime division that will work closely with the port wide CPI functions
In order to support that, we have eliminated three other positions that were at the time unfilled
So there'll be a net change of 5.5 positions proposed
Is it when you're providing this information Friday, will you include that as well? And I think it's Steve
I'd ask you the aviation budget this morning
The the template that they used for identifying this is the purpose and this is how, you know, what we're trying to accomplish
That's really helpful
Okay
Because we can make a clear correlation between how we're allocating resources and what the outcome is
But just to see eight and a half new positions eliminated, three, not five
Basic math doesn't it doesn't give me or the other commissioners the ability to say to the public, this is what we're accomplishing with this budget in maritime
Okay
Sure
That's exactly what I wrote down
Outcomes were FTD before? Yes
Yeah
I think data upon which we are talking is out there now
And I know we were talking about them here, but they're not reflected in the written materials
I know we're discussing that, but
And I'll be interesting in particular, what are those positions that are being eliminated there? It's
It's actually listed in the appendix
You'll see the more detail on it, but it doesn't have the outcomes
It just has the little more specific names of the positions
So that was also included in the maritime business division is a storm water utility, you've already had a very excellent presentation on that today
So unless you have questions, I think I propose that we skip through that
And then there's several slides
There's a four hundred and thirty four percent increase in the capital development division
Right
Between the budget change
It was it was
Sorry
He jumped to storm water
The storm
That's where you just work
Yeah, I mean, it went from 17 to ninety thousand dollars in there, it's just how they allocate their time, their overhead time, they're doing more work within the stormwater utility and
And a portion of that got allocated out and some of that may have to do with the transfer from capital development division into the maritime division
And then the trend the other way also for environment and sustainability
Yeah
Footnoted it down below
It's interesting because this is basically the side screen you had and you guys asked for the footnote on that where we moved from FTE growth from two to three
Offset with that
Got
The transfer of the one FTE
So thank you, commissioners
That's our presentation
We have a number of follow up items that we will get to
Thank you
So we'll transition to Dave for the economic development presentation
Yes, this is the twenty twenty capital budgets for
So right now it's continuation
Yeah
One with many pictures on
Rome, good afternoon, commissioner is executive director Metric highlighting our economic development budget today
Just to level set, here's where we are in the timeline in July presented you our division business plan
I'm going to update you on our draft budget today and the process will unfold and continue towards its culmination in November
You know, we updated our business plan this year, and I'm I'm pleased
I think economic development is really closely tied to our sentri agenda, whether that's driving fishing and maritime cluster growth, advancing tourism, supporting disadvantaged businesses
You know, I I really I think we all try and hold very close to the mark in terms of supporting the port mission
And I also think we're very closely aligned with some of the ports top goals this year
One of the things I'm particularly proud of is being a good partner out there through our grant prograMS We have over 70 different partners out there on an ongoing basis through our city program, through our tourism spotlight or tourism grant program
I think those partnerships are effective
I think they are effective in our backyard, but also statewide
And so with that, that's how our goals fit into the broader picture
And I'm going to turn it over to Kelly now, who will cover some of our budget drivers and budget
Similar to the Maritime Division, Dave and team managed to a zero based approach for the 2020 budget and identified 1.8 million of reductions from the twenty nineteen budget
This helped and helped self-drive an 8 percent increase to the bottom line
Revenue is down 3 percent exclusively by Belle Harbor International Conference Center
Construction downtime expenses fell by one point four million dollars
I'm sorry, just to clarify, so the reduction in the revenue from conference centers is specifically Belle Harbor
Yes
The entire thing in your attributing that to the construction
And so you're anticipating that it will go back up or increase
Correct
Yeah
It'll be it was down a little bit in twenty nineteen
It'll be down a little bit in 2020 and then we expect it to follow
You'll see in the trends that we have down
I'm curious Dave, how and how does that align with the opening of the expanded Washington State Convention Center
Have we taken that into consideration? I don't I don't have an answer in terms of how that times, because I don't know when the convention center finishes
We're gonna finish probably mid-year next year
I can come back and
Yeah, I'll make sure that would be great
Yeah
Because it does go to the longer term viability
I mean we've always Bill Harbour's always been talked about as more of a boutique type of a convention center
But that said, the state is investing hundreds of millions into the expansion of the Washington State Convention Center
And I'd really like to understand if we believe that there's gonna have an impact
Well, we'll respond to that
To that point, though
I recall somewhere in this memo that you express a potential impact from newly built convention centers on page 7 portfolio management trend
So, I mean, you do envision that as a possibility
We did
We're pretty careful when we brought forward
You know, the requests to rehab the convention center to do a competitive analysis and forward looking cash flow that took some of those competitive considerations into into stride as we're developing a plan for our own facilities
I would have no question that keeping investment in 66 is a no brainer
It's a gold mine in terms of an asset you can't replace
But what I'm what I was originally thinking about that is the off season uses at forty six, you know, in terms of the potential, what's the demand out there? And that's what that highlighted to me as a potential concern, but certainly doesn't
Not to second guess the value of redeveloping 66
Now it's Unst here in slide five
This is a roll up of the economic development PNL summary to the right
You'll see the initiatives assigned to the tax levy
Dave, a walk through in detail later in the presentation
And as stated in the maritime presentation, we changed the distribution of common area expenses at Pier 66 and Terminal 91, which increased the cost for maritime and lowered them for economic development division
Additionally, there is some variable expense savings from the conference center
Volume reductions
Again, we see an 18 percent reduction environment and sustainability
Yeah
That has more to do that the environmental and sustainability grew, it has more to do with how the costs are allocated than it is
Dave's not making that decision on it and I hate the invite and not cutting the budget for sustainability
Commissioner Bellum and
Kelly? Well, you're
You've cited this
I just wanted to say one of our exercises this year was, you know, the we we obviously accounted for a revenue downturn, but we really scrubbed our budget hard for cost savings
I would admit when we look back, we had underspent in a couple areas
And so the team took a much closer look at just our level of spend and what we needed to be successful going forward
You can see in the appendix on Slide 21 that the list of what makes up that one point eight million dollars that we scrubbed out as well
Dave, is this the on page 5? Is this the the total of what's going to be spent on workforce development? No
I have another slide that provide detail in that area
And I guess my question just
I know we've talked with MR Corkins and I with the Workforce Development Committee that over the past two years we had more budgeted than we were able to spend
And so I guess maybe I'd just be interested in diving into a little more detail when we get there
I'm I'm sorry
I'm poorly prepared there
I think you'll see a different budget picture this year than last year
Commissioner, just to comment on if I can just come in on that, because as you know, based on my announcements, we're in the middle of that transfer, transferring responsibilities
And Dave's had it and been working on with booked, I guess are on the on the transfer of that
So as we look at that, we're in the middle of that process and booked
We'll be able to talk a little bit about that as we go forward
You know, once we were in the process of completing that transition, but regardless of whether it's in EDTA or within booked US department, it's still a function, something that's coming out
So that's what I'm more interested in now
Really? I'm glad it's your decision about where it sits in corporate, but it's more about what the outcomes are and where we're spending the money
And I'm just from the rough numbers, just looking at this, the twenty nineteen budget was a little over 2 million in an anticipated 2020 is 1.9
So that doesn't feel without having more detail, it looks to be able
I will come to that
Okay
Thanks
We have we have definitely further detail on that in future slides
Next slide, this shows that economic development, financial trend
Well, again, what you're seeing right here is 2019, 2020
You're seeing the impact of that conference and event center, which is really we have the division split up between sort of leased properties and the conference and events center from revenue generating properties in the leases are fairly fixed
They don't tend to fluctuate much in a given year
And that event centers got it's almost entirely variable revenue
So we expect that trend that you've seen from 2016 to 2018 to kick back in starting in twenty twenty one, twenty, twenty two when the conference and event center is fully up and running again in here
Portfolio management, you can see expenses are down again from the from the variable costs associated with it
It's about a seventy five percent
That conference, an event center is about 70 are 25 percent margin business up to 30 percent if you know at different levels
So when we reduce the revenue on it, you're getting an expense savings as well
And now, Dave, I'll talk about some initiatives and priorities I just laid out some
Yes
When we talk about risk, a potential downturn in the real estate
And so I guess when you talk about the next slides, about strategic priorities, when we spoke about becoming a land development, flipping property with conditions on it and all that, at least I was speaking about it
Your response was, well, the downturn is when you start thinking about those sort of acquisitions
So I would just love to know with that potential in front of US strategic assets and we keep on looking at the loss of industrial waterfront or properties like that
I mean, are we keeping some some reserve thoughts like opportunities that might appear? My answer is generally yes
And I'll provide a part answer now and a part answer
During our capital planning discussion
OK
So just to set the table
We've been busy in real estate development
One of the recent things that we're proud of is Trammell Crow just finished constructing a new four hundred and sixty thousand square foot building that's in the picture there
If you really count back over the fast five years we have developed or our partners will be groundless, our properties around the airport and put in place over 2.2 million square feet of new space
And so I think that's significant
We want to build on that momentum
You know, right off the top, we're right in the middle of construction at conference center
We certainly want to finish status fast as possible
We're well into negotiations on our terminal 1 0 6 ground lease
I've got that scheduled to come back to you for authorization still this year
More to come on that we have in the pipeline our desire to ground, lease and put out our for our development of the s.m property in the Drummoyne Creek West property, which is adjacent to the FAA headquarters
And I'll update you on the C IP update in a few minutes
But we'll continue to push forward on terminal ninety one uplands as well as developing new facilities at Fishermans Terminal
We also will take care of our Pier 69 headquarters along the way and want to maintain strong occupancy across our economic development maritime portfolios
So with that, the budget for this is pretty simple
A lot of the work we actually do is for aviation and maritime and it's in it's charged to them
So really the resources that I'm asking for are maintaining in here
We want to use for appraisals and other things, but we really want to update our real estate strategic plan
This goes to Commissioner Balance
No question
We want to take a close look at where we are
We've done a lot of work since the last real estate strategic plan almost four years ago
So I want to state stock of what's left to do with our port properties
But we also want to look around, especially with the protection of industrial lands, a key issue unfolding at properties for our future
Our strategic properties for us in the future
And so want to plan to kick that study out early next year, completing that mid-year and sharing the results along the way
I think the best news I'd share with you about real estate development is, you know, Daniel's done a great job in the interim, but we'll have a new real estate development director starting here in a couple of weeks
And I'm anxious to introduce her to you as soon as possible
p60 9 pretty simple
The only thing we did last year is put in an extraordinary one time funds to operate a sixty nine shuttle during the time the viaduct was coming down in that period of what I'd call maximum constraint
That worked well
It has not been cost effective on an ongoing basis as I as a resource for our own port employees to commute up and down the waterfront
So we're looking at band share and other options
This is no longer needed in my budget, so I zero that out
Switching gears, Diversey and contracting
This is man and his team think they've done a great job getting out of the gate
You know, he's had a twelve point four percent goal this year for when big utilisation
I just looked at where we were after quarter two and we're tracking the head at that at thirteen point eight percent
So we're doing something to move the needle
We also just unveiled our new Vendor Connect database
It's a replacement for p_m_, our assets searchable by wimbish firm by Beltrán status
It can be searched by our buyers
It can be searched by external stakeholders outside the agency
This is a big refinement over what we had before
So what we're really going to continue to do is offer training and community engagement, really helping those disadvantaged business learn about our opportunities, take advantage of our opportunities, and then we're going to continue to work with our public sector partners like washe dot the city and the county to advance when B and dbp utilization generally kept the budget the same here we've moved around a few resources mean was just brand new and really didn't have a lot of input on the budget last year at this point in time
So he's moved some funding from when be best practices in implementation to concentrate that more under mentor protege and really describe what we're trying to do
There is really take the existing set of our pork contractor subs and really help them sustain the work they're doing with this already, but ideally work to create their capacity so they can be more effective and possibly bigger partners for us in the future
So we want to continue to work to really try and triple R when be utilization
I think we've made a lot of progress on there, but we're not done yet
How do we measure the effectiveness of these line items? And I say, you know, we're talking about moving dollars between them, which makes perfect sense with the expertise that we're gaining
Is it post survey? It's very difficult to think about
But I'm saying here is a how do I know that you've actually helped us move to thirteen point eight percent because of the mentor protege vs
procurement technical assistance? Good question
I'd like a little time to respond to that
And please wait
Like someone that is just getting more people into our system, providing tangible assistance to some of our prospective or actual contractors, some of those are actually contracted with partners as well
So if I may, I'd like to be a little more thorough and give you a memo on that if it gets a good like Q&A
And I say that because otherwise you're at risk of me hearing in my outreach the procurement, technical assistance is the top priority
That is the most useful
That's what I really need the help on
I don't want to change without having some actual debt
I don't make any recommendations without having some data
So a good Q&A back and forth and I would be happy to do that
So I have a couple of questions there
Diversity in contracting some areas that I don't know if they're embedded in some of these line items that you've listed here, but relationship building with the general contractors and the smaller subs
There's one area that has long been identified as you can do everything else, but if there's no relationships there, you don't get to to the numbers of participation
Yeah, maybe me and wants to come up here
I'd love to have your answer
Now, if that's part of the work here to increase or
Yes, therapy, I'm speaking specifically to the larger GS j.c.'s relationship building with the smaller subs where more of the minority and women owned businesses are
Absolutely
And it's the song that is critical
One of the things when we're talking about primes and major jeezy's, we have to be partners with them to help identify and cause there might be some women minority businesses out there that we may not even know, not know about
But we leverage those primes like the Turners scans, the cell
Girma Lenos of the world
It's actually so we work partner with them to help identify and build that vendor connect database with, they've just got done talking about where we can continue to build up the pool so we can continue to set higher and more established more goals for our future projects as well
Well, that's a good thing
Critical because if you just worked with the smaller contractors, you'd still have a big challenge there and absolutely connecting
The other areas
I'm interested in our vendors and suppliers to the port and professional consultants who each of which has their own distinct kind of characteristics and and and challenges
So yeah
And if those areas of contracting and awards is being pursued and those areas will increase, well thus there's some big ones here
Yeah
So let's start off with the agency, architects, engineers and professional consultants and so forth
So that is an industry where you're dealing with, you know, your rates, right? You're dealing with making sure the polls are correct or answering the proposals to right away
You're dealing with making sure they understand the standards and specifications correctly
You want to make sure how they understand the port process
So that's reason why part of this mentor protege, a program that you have up there that we're trying to get started is they support those new or recently new businesses that just got on board with the port for any tier to actually give them support structure, saying this is how the port works from a from a A&E perspective and we're bringing in our port staff to help teach them those particular sorts of support net
And for in the case of a much larger professional consulting firm that may have multiple offices and thousands of employees that somehow can claim what we're missing there is the small business component
Yes, they might build to meet some of the, you know, the women and minority, but they don't they don't meet the small business
So how do you how do you have that small business participation as well as women and minority? Well, that's where when you're talking about from an consulting perspective, we'll just use some of these larger consulting firms, you know, agency B and so
Right
We want to really make sure that, A, they understand where we're going be
We want to make sure that we understand who they have out there
Again, from an A&E perspective, locally first and then start building out from there because we want to make sure we capture those local businesses
See, we have the port gin, water smells, support sales, small business generator programs in which we partner and we bring in the agent t.v.'s and hiccups and all the other larger primes in the picking upon what what we're doing
So we want to really make sure that its partner is the key here, especially from those professional A&E and consulting business world
It's it's the training of also encouraging those small, disadvantaged, minority owned businesses to to take a leap leap of faith
Because sometimes when you're working at the Port of Seattle, especially with you're working on at the airport, sometimes they don't know about some of the rules and regulations as relates to insurance cost and how much insurance is cause
That is an area where that could be a boundary
And sometimes those larger firms can actually help identify and teach and maybe even help cover some of the costs to help them get on board
So it's a it's truly a partnership work to do
We have a lot of work to do, but we're moving that forward now
Goods and services, goods, services, we're talking more specifically about buying widgets, at least one side, buying widgets, buying components
And that's fairly very straightforward
But it's just a matter of those businesses understanding how and what the port procures
We've had tours over the years past
We've had tour just a couple of months ago of our aviation facilities for those folks who are selling these widgets and saying what is support by now from a service perspective, janitorial
We try to bring those janitorial businesses out to say, here's an opportunity with the Port of Seattle
Here are the components
You may not be ready for the airport, but you might be ready for precisely nine or six, six or some others
But it's the sort of stand
It's a it's a stepping process in terms of that
And a lot of those training aspects happen through our Port Gine projects or efforts
We have workshops and not to mention separate trainings
I I would add at this point, Peter, we have
Excuse me, Commissioner Steinbruck, we have a secondary goal
It's not just %'s band
It's also a number of wimbish vendors use in a given year
I think our interim number from July was one hundred and eighty eight
So, you know, that's a mid year
I can't put that in context and saying if we continue at that pace, we're doing very well for twenty nineteen
But as as we all know here in a room, there's always room for improvement
You know, this is you know, this is I mean, we're how we started last year
You guys laid the foundation and now we're springboarding forward and
But we're heading in
I mean, we're already caught up to what we were in years past
You know what? I was just going to just wrap up here
Thank you very much for that more detailed response
What are some areas of your greatest challenges in terms of and goals? I know it's all challenging, but what is particularly? Well, I mean, I
There's a lot
You're right
There are a lot of challenges
I think one of the greater challenges that we really want to make sure is that there is trying to balancing out our our small business when be participation versus some of our rules and regulations are the policies
We may have some conflicting policies as relates to construction projects and things like that
That would be good for us to know more about also
Sure
Those kinds of, you know, conflicting missions and requirements that are difficult for the smaller businesses to meet
Thank you
I won't take it
And just so that, you know, some of the small businesses, they're not even just to touch the airfield
It's like 10 million dollars for some insurance
Right
That's I mean, that's that's a killer
Yeah
So how do you solve some of these small business saying, well, wait, let me step back then from from going out for a poor projects, because I don't have that type of insurance at this time of moment, actually
So get out there so
I'd put that as a Stephen
We'd really love to understand working with men to get a fuller understanding what some of those challenges are in and give us the opportunity, think about are there
What are the different ways to address it? I will say I mean, we've been in
We passed our diversity in contracting motion three years ago, I believe year and a half ago
Early, early 2017
It does
But that said, I mean, it was supposed to be it is designed as a north star for where we want to go over five years
And we acknowledge in beginning we're not going to hit those
It's not a year by year goal, which is why it was a five year goal
But what I'd ask is that in all of us in economic development is well-being in diversity and contracting
You know, give us a better sense of if we invest in these programs, they're aiming towards getting us closer to the goals that we set out
And that's what's missing
And again, it's a budget is only an allocation of resources towards an end
And so I think Commissioner Gregoire mentioned why
Eighty thousand to mentor protege vs
more money in wimbish certification
I don't know
Because it's not here
So you have it where you want to go and tell us if you provide us this money commission
This is where we're gonna end up or we're going to hope to end up
And it's OK if you don't get there
But it's difficult to see where we're going to be very candid or be happy to eliminate that
I think all I'd ask is to allow us to illuminate the whole not just what's in our budget, because CPO has added resources
Some of the divisions, you know, have resources that are, you know, really supporting our efforts to move the needle
And so we'll be thorough
And the proof is in the pudding
You're moving the needle
That's right
And thank you for that
And we have no reason to second guess that
That's your recommendation
Just bring us along for the ride
Tell us why
Well, thank you for that
Thank you
On to tourism goes really? Or utilize tourism grant programs to increase awareness of Washington State's unique opportunities, attractions, expand cruise and stay options, conduct farm tours to generate interest in King County in Washington state's tourism entities
And finally, partner with Visit Seattle and watching tourism
So to leverage our own efforts
I think Ron and Patty are doing a good job to advance tourism
Just some quick highlights
Tourism Grant program
We awarded 30 of those grants this year
20 of them went to Eco's sustainable or cultural tourism activities
We traced the money over 80 percent of supporting those kinds of activities
As you know, some of those projects are right in our backyard
But I'm proud to say that they're stretched across the state
Savan in eastern Washington and several out on the coast
So we've truly are advancing the entire state as a tourism destination
We complemented the tourism grant program to support our airport spotlight advertising
That's 18 locations on an ongoing basis that we work with external relations and aviation to support
And then Ron and Patty are definitely out there promoting Cruise and Stay partnering with both our internal team
But also I mentioned visit Seattle, conducting travel, FAMM tours
We've probably end up doing 20 of those this year will impact over 250 travel influencers
Remember, Europe still has a lot of travel agents and travel operators, but we also are trying to touch travel writers that write favorable stories about our cruise opportunities
This year, we expect to generate about 1.2 million dollars worth of that favorable coverage
And so if I advance the slide, really, this is the budget
I think Patty and Ron wanted to continue what they've started with the biggest allocations towards visit Seattle, the sponsorship, some of our European representation
We have representatives in U.K
slash Ireland as well as mainland Europe with the person stationed in Germany
In addition to that, we plan to go to the London travel show
It's one of the biggest ones we used to lead that country representation, but we stepped back and now visits
Seattle is leading that effort
So we're partnering with them and the new Washington tourism alliance to do a joint booth at that show
It's one of the biggest travel shows in the world again
And this time we're taking along some of our local partners, destination marketing organizations from Long Beach, Bellingham and Wall Wall
That's really focus
Our focus is going to be on the cruise and stay options
And so that's some of the things we're doing and in those partnerships
And then finally, just
Sometimes we will also work beyond crews and support
Long haul destination FAMM tours
We did this in conjunction with the launch of Singapore Airlines and we have also worked favorably with Air Lingus and Iceland Aero over time
Just you promote the travel opportunities here in Washington State
Appause can I ask a question on the site? Yes
Will you go back to first principal here and tell us why we fund tourism? I know there's a good answer, but would you clarify for us? Why do we fund these tourism initiatives? The Port of Seattle specifically because we operate true tremendous gateways that are gateways for travel and travelers and tourism generates significant favorable economic impacts, not just to Seattle, but all the way through the state of Washington
And it's it's a nexus point for us
So as we really operate these gateways, we want to maximize the impact and value that travel that the traveler and the tourism to our region
And I know that during the Great Recession, the state really pulled back tourism promotion funding
And we kind of stepped into the breach there to fill the gap and at least keep something moving
Now the state is starting
It's got a little bit of anemic funding
Can you give us an update on whether the state is going to expand that funding over the coming years? And the state has gotten some anemic initial funding to get out of the gate
It's gotten some match funding, including counting some match from us as well
That's favorable
It allows them to draw more of those state dollars
I think they're at a very early stage, though, where they have to get out and show what they can do, leverage their own fund with partnerships with us and others, and then hopefully be able to make a compelling case for either more public or private investment going forward
So one of the challenges of Cruisin Stay would be to get the folks who are going to make the reservation to make it more than the week long cruise
And so I know this has been an ongoing effort and really would require, I think, greater collaboration with the cruise lines because that's where they're booking their ticket and all at the same time
So I'm just wondering, what are those? How are we doing in that effort and what do we still need to do to expand that opportunity? What we're doing in that area is very typically trying to promote our our crews and crews and stay options through travel writers that are promoting the Alaskan cruise
We're working with the cruise line
So for a good example, Patty just did a familiar Asian presentation to the NCL team in Germany
And she got great compliments because while they're very, very well of what they offer Alaska, they were completely unaware of what their travelers could do in and around that cruise
And so it's planting seeds with those folks in the middle so that when they have a traveler who's going to oh, yeah, I want to do the Alaska cruise, but I've got an extra week
You know, we've got somebody that's ready to provide some suggestions or connect them back with us for that fulfillment and help
That sounds great, but the cruise lines themselves are there because the model for them is to have them spend all the money on the boat
Right
So there's no there's no reciprocity
Women figure out a system in which the cruise lines in their brochure could show
We have not quite cracked that yet
No, I think you're right
You're at your perceptions are accurate
They are really trying to promote, you know, getting people on to the cruise and staying onboard and drawing the manatees on the same topic
I know that with these three existing cruise berths were bringing on a fourth at those three
I don't think they're used Monday, Tuesday, Wednesday, Thursday, for the most part
Correct
There's a couple of days, I believe, yes, you're right
They're not
They're not utilized
Do we charge the same rates for those days that we do for the peak days, Friday, Saturday, Sunday? Stephanie can answer that
I'll jump in and say that we do right now
Right
Is the hair lower? Is it the tariff rate is lower on? I believe each day
Wednesday, Thursday
Oui, oui
Oui, oui
We talk about changing it each year
We'll get back to
Because I actually thought it was not lower
So we will follow up
I'm curious to know
I mean, variable pricing based on demand
We've got this incredible resource center utilized
You know, I couldn't give it away in order to generate revenue on other channels
The key is that right now, all of our weekend of Saturdays and Sundays are all under a long term burthen agreements
And the other days are
So there really aren't isn't a comparison between the weekdays and weekends on tariff because right now they are under different kind of agreements just as it's worked out
We do have increasing demand
For one thing, the Alaska births are available
If you cut leave here on a weekday, they actually can burn
So we have the new ship coming next year, for instance
We had a new ship this year
So we we do see increased uptake
But whether that differential tariff
It would be
It would drive additional volume is a great class, and I admit that I'm speaking from ignorance right here, but not knowing how much of an impact our reducing the tariff would have on consumer demand
You know, when these get passed through the cruise line and everything else
But if it's significant, it's 5 to 10 percent and somebody may decide, I'm going to take two more days of vacation and do a a nine day trip that would allow them to leave on a Tuesday and come back on
What we're seeing is really all the cruise lines are filled
No matter what day they're on and in the passenger fees, the tariff rates are passed through
The cruise lines actually don't pay them
The passenger pays them
So we actually don't see a lot of price, a lot of elasticity, I guess you might say
But we can look into that, commissioner, because we have discussed that of the
How do you
Because you have unused capacity and how do you manage that? And how do you nudge people towards that? We expect you to buy the final thought not to answer now just as we get into more detail would be great to understand what we're doing the same in the tourism budget
I don't mean the numbers are exactly the same
Yeah, we look at this, but in terms of initiatives and I'm Echo Commissioner Gregoire from a couple of years, I think you've said the same thing every year
Are we looking at new markets? Are we invest? You don't have to answer that now
But I'd really like to understand, is it still basically the U.K.? Are we considering other markets, all of that yet again? Don't have to answer it now
But what are we trying to achieve with this budget? Because, again, it looks it's that it's exactly the same
I'm happy to respond
Okay, thanks
And the new market, New Zealand and Australia
So I'll just leave you with that and then put that in writing and give you more detail
Okay
Thank you
Move on to just our economic development admin and now maritime innovation partnerships
Joe Myer on My Team does a good job managing our EDI grant program with King County Cities
We want to continue that
My budget also contains support for Greater Seattle partners
Christine, we just met around the demolished community equity idea
Very exciting
Want to do that place based economic development and support that community, trying to diversify and strengthen its neighborhood economy
And finally, want to continue supporting maritime innovation initiatives
Again, I think our city grant program is doing well
You know, the city's abused those funds for a variety of different things, from business recruitment to business assistance, to planning feasibility studies, to supporting tourism
And we'll have a more fuller report when they finish the grant cycle
They're due to provide their project report to here at the end of this month
And we always summarize those and provide a summary report before the end of the year on that program
I believe Greater Seattle Partners is off to a good start
Bryan McGowan and his team are doing a good job to raise the region's image as a business location
What I'm really pleased with is how he's building and the team is building prevalent, productive and collaborative bridges across the three county region
That was the premise for Greater Seattle Partners
And I see that webbing in that stitch in bringing us together around a stronger regional effort
And I'm pleased with that
And then finally, I want to continue supporting maritime innovation
You know, as the Maritime Innovation Center projects taken shape, I've been struck by the public and private support
We've picked up around the table that the the depth of interest
And so we're a key partner in these efforts and helping lead regional efforts in a positive direction
If you look at the budget for this oedema admen, it carries forward Avlon's won't say yes
So at the last Seaport Alliance meeting, we had a great presentation on industrial lands challenges NARAS and we and we look at our our HMIC are Southern Make in particular, and we're talking about all our concerns about Sodo encroachment and same old story
But the
You know, Epiphany kind of struck me at the same time that, well, there are people that live there, too
Right
And I had to raise this question, but where we're trying to preserve the industrial footprint
But the zoning in the in the Duwamish is such a
Crazy thing is that people are living right next to industrial development
So it's a it's a delegate challenge
And in terms of allocating attention to, you know, the industrial versus the residential where they coexist, and I don't think there's an answer to that
But when we when we look at these real estate opportunities, it seems that we have to think about both when I'm thinking about, you know, preserving a light industrial
The idea is there could also be appropriately located residential spaces that are subject to, you know, incredible, you know, real estate increases in costs and cost of living and things like that
So I'm just wondering, in the course of looking at your real estate portfolio, these are competing interests in very overlapping areas that I encourage you to look at with strategically in mind
Ok
Thank you
We will do that carefully
And on the budget side, very deep
You want to continue the funding for E-D partnership grants
You know, the state moved a workforce development pilot program
I put that funding in there
It's a career advancement center
You're going to see that on the next slide on workforce
It's just moved into its appropriate place
Then I zeroed out the membership
So he carried last year the really past tense, the former Economic Development Council trade development
We used to total one hundred and ninety three thousand dollars giving to those two separate firMS I at least just penciled in an amount for a annual donation to Greater Seattle Partners at one hundred and fifty
I know Brian and his team will be calling on us
They're about ready
Go in
They have started a fundraising campaign
We'll learn more and socialize a recommended funding level for 2020
I have some funding there for promotional, hosting and sponsorships
I actually took some funding out of the maritime or the Opportunity Fund that I've carried for special projects and earmarked it specifically for maritime innovation initiatives
We signed M.O
you with Maritime Blue
We have a contract that we put into one year
I want to just have the resources to consider that on an ongoing basis as we move forward
And then finally, workforce, as Steve mentioned, you know, this is a this is a department that's in flux, announced that it's moving to the new equity diversity and Inclusion Department as a result
I'm happy and I'm going to provide some details around this department's work
But I asked Booth to join us in session today in case you have some questions about the future
You passed a resolution on workforce five years ago
It's been a long time
And we have talked about through a workforce commission committee, a new policy
And so one of the things that I said is a priority and I've talked a book to about is to support a new workforce policy
And you'll see that as a as outlined in the budget in terms of a robust community engagement process and strategic planning process that would follow your policy resolution and make sure it is alive and well as we put a strategic plan together
Also advocating that we continue to sustain construction industry training, that we operate our airport employment center, that we implement in aviation career pathway pilot training initiative that's focused on aviation maintenance
And finally, that we sustain the Maritime Youth Collaborative and look at how we can also expand that as a model to aviation career connected learning
So here's the budget page that could you could you update us on what? Recent things happened with the Youth Maritime Co-operative, with the recent Iren
Where we're going with that
Yes
I want to thank first as we get into that, we did an RFP and just made a decision on a contractor to take that forward
And what I want to just tip my hand on is lutely
And Cerrato was very helpful
Consuelo really helped sculpt that out and select the consultants
We had a good competitive proposal and we ultimately chose partnership between Maritime Blue and Goodwill Industries to help move the youth collaborative forward
Goodwill will make sure that it's got a strong equity focus and Joshua and his team will make sure that that's embedded within the maritime industry
So what that really does is make sure that they sustain that alliance of youth serving organizations into the future
And it's a two year contract
And so the port was a soul
No, the city
The city is also helping fund that under a separate contract and has been supporting Maritime Youth Collaborative for a while
Great
So we split that
Not exactly
But their funding
Yes, they are helping fund that
OK
On the workforce and it just took off from the top
OAPs I'm sorry I went too fast in terms of airport employment center
We offset the rent that's lying too
But really, that supports
Last year they placed over 2000 job seekers
They supported job search for over 7000 people
And when you think there's twenty one thousand badged employees at the office, having a good, robust and busy employment office at the airport is a vital resource both for job seekers, but also for all of our employees are employers
Excuse me
We go quick
Forgive me
The Q&A for back
How are we doing on that? The FAA, that in-kind rent for this purpose is totally consistent with FAA guidelines
Do we know what that is? Pete, do you mind if I ask for help as a follow up? Definitely
Thank you
You know what I'm saying? Bye, guys, right? Yeah
In terms of the construction trades, we support training, pre-apprenticeship, training through the iron workers and a new and they've done 90
They've placed ninety five people coming out through those pre-apprenticeship prograMS That contract is on an annual basis
That's what we would expect
And New will add to those totals next year
This is a partnership with the city and the county
So that's our contract in the city and county and in turn contracted with PAC to add another seventy five people to their and pre-apprenticeship program
So in total, we're doing about 160 a year through the three partners
And then in addition to that, the city added some funds so that a new could just provide employment search services for additional one hundred and seventy five people, not exclusive to the trades
And so that's some of those contracts under construction trades
We also have a contract with Urban League as part of that tandem, along with the city and county to provide outreach, assessment and referral services
And that's to make sure that we are recruiting people from disadvantaged neighborhoods with an emphasis on women and people of color
And in addition to not just bringing them in and referring to iron workers in a new if the prospective employee means an orca pass, protective clothing, remedial math, that contract provides some of those important wraparound services
And if you really study the trajectory of construction, apprenticeships, what you will see is a lot of drop out over the course a year
And some of that contract is really to keep an eye on our key people that we're making an investment in so that they're successfully advancing through their apprenticeship
I just got to say that was one of things that is really impressive at Goodwill
They really carry the people through at least three years, a couple of years and in high school
And then the even the year afterwards was, I think, one of the very effective things that their program showed
Mm hmm
I think I touched on the Maritime Youth Collaborative, the new contract that that one hundred thousand dollars a year, I put a fifty thousand extra in case we wanted to support certain special events or outings, just a little extra flexible resource that we might be able to boost those efforts
That's a very successful
And then we have the Career Advancement Center
We basically going to see that they're starting to set up shop
They're looking at
They found a vocation down in SeaTac
They are gearing up to open
And they're really going to launch their efforts, especially with a robust outreach and educational efforts starting in January
And I'm sure they'll be sharing the news
Well, before that launch
One second
No
In the in the Maritime Youth Collaborative, that number where you the budget changes a hundred thousand badly
Yes
That's what we have contracted per year
And I am being transparent
We've got a 50 thousand extra in case we want to invest more behind certain types of maritime youth or career connected learning initiatives
Because I'm specifically working on doing a trip with the tribal partners that we have
We've spoken about that
So this would be something that we would talk that this would be the kind of money that would be applied to something like that
You'll be able to talk to book to about that
Yes
Right
So I guess the way I see it
So the actual budget
OK
So it's a fifty thousand leftover
But there's also the hundred thousand that actually we're putting towards the contract
Nader
That's right, yes
That's really the resource, the coordinator and the equity training from Goodwill is is contained in that contract
Deeply thank you for all that detail
And would you be able to provide that just in a one page? How much is going to each of these different organizations and what we're doing? Got it
OK, great
I'll just finish with the airport
Her pathways implementation and that one's been slow
It took a lot of research
It took a lot of hand-holding
I've had a consultant working on the pieces of this initiative for over a year, maybe even a year and a half
Knock on wood, though
I think we're very close
What we have now come up with is a partnership with South Seattle College
There is an Avey there's FAA certified aviation maintenance training program
And for a seed investment, we can kick off a pilot program where our hundred thousand dollars is leveraged by other resources to put a cohort of 19 through that program
And if that's successful, then we would have time to run a second cohort through that program as well
This is, I think, a very productive direction
I know that you've been interested in not just placing people at the airport, but actually seeing how they can progress up the ladder
It's taken us some time to hit a sweet spot where we know there is demand for aviation maintenance, training and a very good local training program that has the capacity
That's that's part of the conversation that took us a while with South Seattle College
But now we've arrived at the right timing, the right mix of resources, the right mix of partners to where we think we can really test this, move this forward productively
But take a break, CAPTA, our first cohort to make sure, hey, are we doing this right or is there another tweak that's needed, making sure we pause for lessons learned? So we're going to kick that off in January and that will unfold over the following year
In terms of down at the bottom, you can see most of our workforce funding this year is under contract
I did ask in a maskin you to fund an engagement and strategic plan that's premised on a new workforce policy
And then I have put some resources in there to continue the discussion around maritime secondary education
So I will put this into a one pager with highlights on the outcomes, just so it's really clear what we're getting under these contracts
And I think that brings me to the last point
Gregoire's got a question
Yes
Just real quick and I completely agree with commissioner and comment that exact direct documented earlier that it's on
You have made a good decision about where workforce development should sit in the future
As someone who came into a role in the middle of a budget year, I'm very cognizant of leaving the flexibility to the new leader to come and make some recommendations
What I've heard so far, if that makes sense, is some commitments that have been multi-year
And so this makes complete sense as line iteMS I'm just not seeing the flexibility to let the leaders say, hey, let me make some recommendations
I think that's what I hear, an engagement in strategic planning, etc
But I gonna give that feedback and say, let's make sure there's flexibility for someone who comes in mid
You know, I'm just speaking from personal experience just to say that we may need some resources to do this work
Yes, we act solute
We have a discussion on the handoff to that
We've had that discussion especially on some of these programs that Dave has outlined
And if they really tick off, we could put more resource behind them or on other initiatives
And does this line up
I know that David BUIK does, but I've been talking about the handoff and I have total flexibility within my resources
We've already talked about that supporting the office of VDI as well as we're stand up and as we're moving forward
Same similar to us
We ended up at the end of 19, the resources we put some in there
But of course, if there were other needs that she identified in order to go forward, that I'm going to be able to fund those
And we have the flexibility within our budget to be able to do that in 20
It's great
And welcome to an area that the commissioners have a lot of passion about
Lots of ideas about
Thank you
I look forward to working with all of you
And it reminds me that I will put contract Lange up
I'll put dates of any contracts
And so this all that way, you know, what we've committed to and some of more, you know, like Airport Employment Center goes through 2021
But your decision will actually come back next year
Because I'm reminded when I first got here, we authorized Nahh P for that
And that's gonna take some time
So I will make sure we're transparent on just the dates around some of these key contracts
My last slide I am asking for Dave, can I get a sort of three quick questions? So one of the themes that came out of the Maritime Secondary Education Summit that we held a couple of weeks ago is that at certain areas in the awareness building to career launch spectrum, there's actually a lot of resources available out there
In other areas
There's a dearth, including, I think, in that early awareness building
And so I'm always paying attention to where we might be able to step up as a port to to support those kinds of things
So, you know, I think like Commissioner Fellman has talked about the awareness building through, particularly working with the tribes
I think that makes a ton of sense of the Maritime Youth Collaborative
I'm curious to know on that K-12 career connected learning that 400000 and 2019 budget that I presume was not spent trying
Correct
So which is why we're not rolling it over into the 2020
Was there an intention there? And so would we be open again to the possibility of re including that recognizing that, you know, from really what we're hearing from successful models in maritime education, it's getting started in kindergarten with awareness building, letting these kids know that these careers exist, that they're prestigious and well compensated
And so that we do get them really early on in the pipeline
Yes, answer I put that funding in there because I saw a potential opportunity that we might work with Workforce Council or other partners to do a larger career connected learning initiative that
Well, OK, thank you
That that was the premise
You know, that that just didn't materialize
And so rather than go out on our own and do something right, you know, just to spend the money, I just pulled it back
And I think there's huge opportunities
I would agree
Whether it's a partnership or just to deepen our own efforts in certain key areas where we're seeing success
I would hope that week we weave circle back to that conversation
I think that's an opportunity for book to explore with her team
Yeah
Commissioner CAUCHON, we've already set up a meeting for the Workforce Development Committee
I think it's on October twenty ninth that I'll be meeting with you and Commissioner Bowman and we'll talk more in our meeting
But I intend to, as as Dave mentioned, to launch a series of committee community meetings to get more input about workforce development, our impact, our results and the strategic plan
But also for myself to really do a deep dive over the next few months to look at where we have not spend, what what the institutional barriers or community barriers have been has
Do we need to shift the focus of those dollars? But I just need a couple more months to really have a better idea about your question
But what you're saying makes perfect sense to me that we to get kids really early on and there are a lot of programs in this city that do that
But we need to look at the gaps and and figure out where we can focus
And I think it's really important that there are there are few gatekeepers for funding that that have created very have created criteria to release that funding
And if we don't structure our programs in recognition of those criteria, then we miss out on that opportunity to access that exterior funding
Yeah, agreed
And I think that's one area where I could have some flexibility if during the school year there becomes I mean, not the school year at the budget year that we have an opportunity to look at something that that is an early on thing, that that comes arises out of this, that we can look at the availability of funding that
May I finish? I'm here
We're requesting point six FTE, Jeff, for a real estate analysts
I need to keep somebody on top of the lease rates
Market research especially, we're building new facilities
About a third of our existing real estate portfolio took over, turns over in a given year
So, you know, this person, for instance, just was able to affect our lease rates by 1 to 2 percent
They'd pay for their own position
And so that's really the goal is to stay on top of this, especially if we start going to market with the products we're building
We need to be really acute here
We need to know where the pulse of the market and rates are
So I think we're done
I have one question and then two things
First of all, I just want to give a heads up
I think we're all hitting the running out of steam
And so I want to out of respect to Dan and Elizabeth and the rest of the team
I'm sorry that you've been here the whole time, but I think the financial policy is so important that can we take that up at the top of the agenda for the next meeting? Because it's it's really critical
And I don't want I want you to all to benefit from our good thinking on it
And so thank you for that
Dave, I just have a quick question in terms of the zero
Your last slide in the appendix rejections from zero based approach
Is there anything that actually was eliminated? I mean, I see some, you know, some slight reductions in areas
But is there anything I mean, a zero based budgeting means you start from scratch
Do you evaluate every single program and expense and you go? I firmly believe that we should continue this
Is there anything that we're not continuing, that you've did a trillion initiative that you've taken off the table other than just really the career connected learning that I took off the table? Everything else is a reduction
Ok
Last but not least, I think we can get through the cap
The capital budget's not huge
Had we filled, Fred's eyes were getting big
It's a wolf
The groups, we can we can take it up at the beginning of the next meeting
But what do you think? Talked about? Well, I'm I'm asking my colleagues
Excuse me
We're its policies
Ok
But I will
The one thing I will say, though, is that the budget will be the initial draft document will be produced the 21st, 22nd
So it'll be the morning of that
So we'll get the budget document and then we'll have that briefing first thing
So if you have questions about the maritime capital budget, you need to get them to Stephani
Aissa, within the next two weeks, I provided some feedback yesterday
A couple days ago when I saw the presentation
Yes, Commissioner
And those additional materials, we provided some some additional information that's in the separate hand out there and then stuff
I'm sure you'll be available for two to ones if we want to do it that route as well
I will be in Japan for part of next week, but all the times that I'm here, I will be available and I will be able to cover most of those
Well, I think MR Coffin's and Steinberger out of town next week as well
I'm remembering correctly
An observation that this is a very good conversation
But I think the Pacific magazine story this Sunday on Port Townsend was was really instructive in that that the the struggle that that community is brother saltiest community we have in the state left is is experiencing very much the same challenges that we're having
And then some
And, you know, cost of living and not understanding what you have in your own backyard
And I think, you know, they if they can't win that battle
I mean, I think that is really a litmus test to our ability to make the case for why maritime is important
And that I think and to some degree that we somewhat owe it to ourselves to help them make their case as well
I mean, I think this is like the battle royale in a lot of ways
And I put that out there because and when we lose Jensen Shipyard, when we lose these things, like where did those guys go? I mean, I'm hoping they're going to Port Townsend
But this is a this is really the microcosm of our challenge right now
Now, I'm fortunately, they have now developing programs, starting young in the classrooms, telling kids this this is part of the fabric of your life, but that
Even with that, we see this erosion occurring, so please let's look at this as a four band for boating to the challenges we're up against and how we have to double down in our efforts here
Great challenge
I would returning to the question of the economic development division
Capital improvement plan
I would say the only thing that we would want to
My suggestion is if there is going to be any change to the levy consideration, we'd probably want to begin that conversation with staff quickly so that we're not waiting two more weeks to have an airing of that in public, because that I think that would be the most significant change to everything in here
There's only
Well, no, it's the same
So just as a reminder, the what MR Metruck proposed last year was over five increase the levy by 3 percent each year over five years just as a baseline
So I still should propose and that's still a proposal and that's what the capital projects presented in there are within that 3 percent
And that will be presented in if if we just the items that we come forward on the 22nd will reflect the work that's that's in the presentation now
But there are no really new S.O.P
As pointed out there
There is there is a number of preservation items in there
There's a number of one hundred and seven million dollars of additional preservation items from the backlog list that weren't included previously
They were in the perspective list last year and they're included not in, I will point out
I mean, there's a law there is a large one of those preservations, which is the north side of Terminal 46, which is a 60, 65 million dollar project deeply made
Let's just just scheduled to two ones
Yes, I got the present
There's it
Remember last year there was above the line and below
Yeah
I always like this are the ones that we're of the line and now it's moving, but now it's moving about
It wasn't it to begin with
And then just the funding
Did we ever lease P2? OK, we're gonna do it
So we got a revenue item
We're going to go
All right
Thank you
That's a good question
But I mean, it's just another revenue stream that we were going to develop
All right
Okay
All right
With that
So we're going to do so again
Two to ones on the maritime capital budget
We'll take up the financial policy at the very top of the agenda on the 20 seconds and anything else for the good of the year
No, thanks for your thanks for your time today
Okay
We earned her $14 an hour
All right
Thank you
Meeting is adjourned at for it
Yes, you may
One quick thing
I think my son Gus is watching
So I just want to say hi to guys
It really is fantastic
All right
We are adjourned for 440.

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