Transcript

The Regular Meeting meeting scheduled for 2024-02-13 at Pier 69

  • This is Commission Secretary Ryan Calkins convening the regular meeting of February 13, 2024
  • The time is 10:30 a.m
  • We're meeting in person today at the Port of Seattle Headquarters building, commission chambers, and virtually via Microsoft TeaMS Present with me today are Commissioner Cho and Felleman, who are currently gathered in the executive session room awaiting the opening of the public meeting
  • Commissioner Hasagawa and Mohammed are absent and excused from this session
  • Commissioner Mohammed will be joining for the regular meeting
  • We'll now recess into the executive session to discuss two iteMS The first is a collective bargaining session per RCW 42 31 44 and is expected to last 40 minutes
  • And the second item is a security discussion per RCW 42 31
  • Ten one AI, and is expected to last 15 minutes in discussion
  • We'll reconvene into public session at twelve noon
  • Thank you
  • We are in recess
  • This is Commission President Hamdi Mohammed reconvening the regular meeting of February 13, 2024
  • The time is now twelve five
  • We're meeting in person today at the Port of Seattle Headquarter building, Commissioner Chambers, and virtually via Microsoft TeaMS Clerk Hart, please call the roll
  • Thank you
  • Madam Commission President, beginning with Commissioner Calkins here
  • Thank you
  • Commissioner Cho, present
  • Thank you
  • Commissioner Felleman
  • Present
  • Thank you
  • And Commissioner Mohammed, present
  • Thank you
  • We do have a quorum established here today
  • Thank you
  • A few housekeeping items before we begin
  • For everyone in the meeting room, please turn your cell phones to silent
  • For anyone participating on Microsoft Teams, please mute your speakers when not actively speaking or presenting
  • Please keep your camera off unless you are a member of the commission or the executive director participating virtually, or you are a member of staff in a presentation mode and actively addressing the commission
  • Members of the public addressing the commission during public comment may turn on their cameras when their name is called to speak and will turn them back off again at the conclusion of their remarks
  • For anyone at the dais here today, please turn off the speakers on any computers and silence your device
  • Please also remember to address your request to be recognized, to speak through the chair, and wait to speak until you have been recognized
  • You'll turn your microphones on and off as needed
  • All of the items noted here will ensure a smooth meeting
  • Thank you
  • All votes today will be taken by a road call roll call method so it is clear for anyone participating virtually how votes are casted
  • Commissioners will say aye or nay when their names are called
  • We are meeting on the ancestral lands and waters of the Coast Salish people with whom we share a commitment to steward these natural resources for generations to come
  • This meeting is being digitally recorded and may be viewed or heard at any time on the port's website and may be rebroadcasted by King County Television
  • Now please stand and join me for the pledge of allegiance
  • I pledge allegiance to the flag, United States of America, and to the Republic for which it stands, one nation under God, indivisible, with liberty and justice for all
  • Thank you all
  • The first item of business today is approval of the agenda
  • As a reminder, if a commissioner wishes to comment for or against an item on the consent agenda, it is not necessary to pull the item from the consent agenda
  • Rather, a commissioner may offer supporting or opposing comments later in this meeting
  • Once we get the consent agenda approved, please wait until the motion to approve the consent agenda is on the floor for these comments
  • However, it is appropriate at this time if a commissioner wants to ask questions of staff or wishes to have a dialogue on a consent agenda item to request the item to be pulled for a separate discussion
  • Are there any items to be pulled from the consent agenda today, or any motions to rearrange the order of the day? Madam President, I would like to pull item eight I
  • Item eight I for just a brief couple of questions
  • Okay, we will remove that item
  • Clerk Hart, do we have to make a motion for that? No, we do not
  • Okay
  • Commissioner Felleman will pull item eight I from the consent agenda
  • Thank you
  • Commissioners, I would like to request
  • So you're requesting item eight I to be removed? And I have here
  • Commissioner, the question is now on approval of the agenda
  • Is there a motion to approve the agenda, as amended? Madam Commissioner, President, let's go back to your request to remove ten b
  • That's correct
  • Commissioners, I would also like to remove item ten b, removed from the agenda and sent to the February 27 regular meeting agenda so that I can participate in today's listening session and hopefully report back to the group
  • So I'd like to remove item ten b
  • I can make a formal motion if needed, unless there is an objection to move this item off of the business item today
  • Do I hear any objections? Hearing? None
  • We'll move that item to the next meeting
  • February 27, 2024
  • Thank you, Madam Commissioner President
  • Thank you, clerk
  • Commissioners, the question is now on approval of the agenda
  • Is there a motion to approve the agenda, as amended? So moved
  • Second
  • Great
  • The motion has been made and seconded
  • Is there any objections to approval of the agenda, as amended? Hearing? None
  • The agenda is approved, as amended
  • Moving on to special order of the day
  • We have one special order scheduled for today
  • Clerk Hart, please read the item into the record, and Roxanne Murphy, senior manager of tribal relations, will introduce the item
  • Thank you, Madam Commissioner President, this is agenda item four, a proclamation in recognition of the bolt decision, federal landmark ruling affirming tribal sovereignty rights of fishing in Washington state
  • Good afternoon, Commission President and members of the Commission
  • We come to you today with great respect for our tribal ancestors, elders, and members, great respect for the bolt decision, tribal treaties, and also subsistence ways of life
  • My name is Roxanne Murphy
  • I'm very happy and humbled to be serving as the new senior manager of tribal relations for the port of Seattle
  • And today I'm joined via teams and also in person with fellow members of the Native American Committee for the Port of Seattle
  • We're very excited that we're going to be able to present the proclamation and read it into the record today
  • Our first speaker to present the proclamation will be Chelsea, and everyone will announce their name and then also what tribe they come from
  • So, Chelsea, please take us away
  • Hello, I'm Chelsea Cannon Rodriguez, enrolled member of the Kyla tribe of Oklahoma
  • Whereas the abundance of fish and wildlife have enabled the indigenous tribes in the Pacific Northwest to thrive on resources such as salmon and shellfish since time immemorial, and whereas, in 1854 to 1855, the United States government signed treaties with tribes in western Washington, reserving their right to fish in usual and accustomed fishing areas in exchange for seeding 90% of their land to make way for colonization by settlers to the region, and whereas, the state of Washington prevented the tribes from exercising their treaty reserve rights for many years, resulting in tribal fishers facing many challenges, including citations and arrests for fishing in their usual and accustomed areas, next we'll hear from Brian
  • Hello
  • Brian Newman, member of the Heighten Cincinnati Tribes of southeast Alaska
  • Whereas by the early 1960s, tribes only harvested between two and 5% of the annual salmon and steelhead catch in Washington state, which resulted in tribal leaders staging significant acts of disobedience known as fish ins and fish wars
  • And whereas, in the early 1970s, the United States government successfully sued the state of Washington in the seminal case United States v
  • Washington, which resulted in direction to the state to regulate fishing in a manner that allowed full exercise of the tribe's reserve fishing rights
  • And next up is Marie, Marie Bell Allen from Clinkett Tribe of Alaska
  • Whereas on February 12, 1974, Judge George Bolt of the United States District Court for the Western District of Washington issued aye
  • ruling in United States v
  • Washington in favor of the United States on behalf of the tribes and created a significant legal precedent regarding the enforceability of a treaty right
  • And whereas, Judge Bolt's landmark ruling, now known as the Bolt decision, was reaffirmed by the United States Supreme Court in 1979, holding that the tribes reserve the right to take up to 50% of the harvestable fishes in the areas the treaties covered
  • And next up is Tanisha
  • Tanisha Simmons, Aleut of non Dalton village and also African American
  • Whereas the Port of Seattle recognizes the economic and cultural importance of fishing and a healthy marine environment, and how the steadfast work of the tribes to protect and provide fish and shellfish benefits everyone
  • And whereas, the Port of Seattle was founded in 1911 by a vote of the people as a special purpose government to promote economic opportunities and quality of life in the region by advocating trade, travel, commerce, and job creation in an equitable, accountable, and environmentally responsible manner
  • And whereas, the Port of Seattle conducts maritime operations within the Suquamish and Muckleshoot tribal governments, usual and accustomed fishing areas, and has been working to avoid and minimize conflicts between fishing and commercial operations for many years
  • So, once again, I'm Roxanne Murphy
  • I'm a member of the Nooksack Indian Tribe from Washington state
  • Whereas, in recognition of the importance of the tribe's treaty rights, the port has recently hired a tribal liaison to work with the Port and commission to maintain government to government relationships and to identify opportunities for greater collaboration
  • Now, therefore, be it resolved, the Port of Seattle commissioner wishes to join the tribes and many others in celebrating the 50th anniversary of the bolt decision and a firm commitment to sustaining our partnership with tribes to assure that there are fish and opportunities to fish for future generations
  • So, in closing, what we wanted to do was thank the commissioner for this proclamation in a language that we're all comfortable with
  • And I'll start Heishka Osiam, and we'll turn it over to Chelsea
  • Aho
  • Thank you
  • And Brian Pawa
  • And thank you, Marie Paula
  • She and Tanisha, thank you so much
  • So thank you for allowing us to present, and I'll turn it back over to the clerk and the commission
  • Well, thank you to all the readers
  • We appreciate your leadership here at the port of Seattle, and for being a part of this really important recognition
  • I will turn it over to Commissioner Felleman
  • Would you like to move to adopt today's proclamation? And once you have a second, we'll start with you for comments on this item
  • Thank you
  • Madam President, I'd like to move item
  • Agenda
  • Agenda
  • Item four a
  • On the agenda
  • Second
  • Great
  • The motion has been made and seconded
  • Commissioner Felleman, you have the floor I just would like to thank the members of the employee resource group for making this that much more special a day
  • The fact that we come in a day after the actual celebration of the 50th anniversary, we couldn't have planned it that well
  • And really very much looking forward to having Roxanne as our liaison going forward, moving our relationship from more of a transactional to a collaborative relationship with tribes in our area
  • And I think this is something for me, 35 years of environmental consultant working with the tribes
  • If you're going to do anything in the water, you have to know who is here first
  • And eight years on the commission, I continue to carry this sentiment
  • And so knowing the stewardship the tribes had, the treaty has made it possible for a lot of the recovery that we've experienced and for this
  • Heischka to you all
  • Commissioner Calkins, as we were building up to the 50th anniversary, I had the opportunity to read through some of the histories of the actual actions that took place leading up to the port case
  • And I think it's really important for folks to remember the civil disobedience that occurred and that it was not popular amongst the general population at the time, the fish ins and fish wars, that there was a lot of resistance from folks in the area because they felt like it was impeding commerce or that these things were illegal in the strictest sense
  • And yet that effort, that courageous work of those folks, Bill Bank Jr
  • Of course, being the most famous, resulted in a legal structure that has preserved for future generations something that is once lost, would never be brought back again
  • And so I think for all of us as students of history, understanding that it takes that kind of courage to do the right thing, even when all the pressure is against you
  • And so being able to recognize that today, I think, is really important, and it's a lesson for the somewhat sometimes controversial, but really important things that are the right things to do today
  • So thank you for bringing this forward
  • Thank you, commissioners
  • I echo those same sentiment
  • It is so important for us to honor history, to learn from history, and to do better in the present
  • And I think this is one of those moments that underscore that for me, and honoring treaty rights is something that we have made a commitment to and building on our tribal government to government relationship
  • So I want to thank commissioner Felleman for your leadership on this and moving it forward and all the staff who've helped work on this
  • And, MS Murphy, we are lucky to have you at the port of Seattle as well
  • And I'm looking forward to your leadership in this new role that you take on hearing
  • No further discussion on this item
  • I will call on Clerk Hart to call the roll for the vote
  • Thank you
  • Beginning with Commissioner Felleman
  • Aye
  • Thank you, Commissioner Calkins
  • Aye
  • Thank you, Commissioner Cho
  • Aye
  • Thank you, Commissioner Mohammed
  • Aye
  • Thank you for aye
  • Zero nays for this item
  • The motion passes
  • Next on our agenda is executive Director metrics report
  • Executive Director Metruck, you have the floor
  • Thank you
  • President Mohamed Good afternoon commissioner
  • I'd like to begin my remarks by wishing everyone a great black History month
  • This year's Black History Month theme is African Americans and the arts
  • African American art is infused with African Caribbean and the black American lived experiences in the fields of visual and performing arts, literature, fashion, folklore, language, film, music, architecture, culinary and other forms of cultural expression
  • The african american influence has been far reaching
  • There are several opportunities to engage and learn more about these important contributions over the coming weeks, and I look forward to the proclamation and reception at our next commission meeting later this month
  • I would also like to wish everyone who celebrates a happy Lunar New Year the airport welcomed the Year of the Dragon by combining a Lunar New Year celebration for passengers with the grand opening of the new embark whiskey and grill on end concourse
  • Congratulations on the successful opening
  • The year of the dragon symbolizes power, nobility, honor, luck and success
  • Here at the Port of Seattle, we have many successes to celebrate and many of those were highlighted at last week's state of the port breakfast last week, where we had the opportunity to review some of our milestones in 2023 and talked about the work ahead of us
  • In 2024, we were fortunate to have been joined by more than 300 of our customers, stakeholders, community partners and local elected leaders at the Maiden Bauer center in Bellevue
  • I heard a lot of positive comments about the event and I'm sure you did as well about it, commissioner
  • Each of you, hearing each of you and your personal reflections and how you view the year ahead was a highlight of the event
  • The event would not have been possible without the tireless efforts of our incredible staff, particularly the external relations team who keep finding creative ways to pack a lot of information into a 160 minutes breakfast
  • Clips from the event, speeches and videos are already up on the port's YouTube channel and I encourage everyone who everyone to check it out and especially if you weren't there
  • Also, last week was the first commission and executive leadership team retreat of the year
  • I want to thank all the staff who prepare presentations for your review to share our vision for 2024
  • Staff will work with the commission office to align on outstanding deliverables such as preparing additional reports, work plans and incorporating your feedback on strategic planning, especially related to the century agenda
  • Moving to operations I want to highlight a few iteMS The day after our last commission meeting, the port published its official year of end numbers for Seattle Tacoma International Airport
  • The data from sea reflects the strong recovery in international travel and the continuing popularity of Mexico as a destination
  • Total passengers at sea were nearly 51 million, up 11% from the previous year, but still down 2% from the high watermark in 2019, making it the second busiest total ever
  • As travel continues to recover from the pandemic, sea aye
  • month over month passenger volume highs four times in 2023
  • In February, September, October and November, international traffic was wet at 101% of 2019 levels, even without the return of most China services lost during the pandemic
  • European traffic in 2023 was 21% above 2019, with volumes to Mexico up 91%
  • Our 2024 forecasts predict a 3% rise in passenger traffic, rising close to 52 million annual passengers, which would exceed SEA's largest volume set in 2019
  • Ensuring that every passenger has a welcoming, safe and comfortable travel experience is one of our goals
  • SEA is honored to have received a level three rating through the Airport Council International ACI Accessibility Accreditation Enhancement program
  • Congratulations to the Sea Access team and all their partners across the airport for their work on accessibility at sea
  • In other operational news, I want to share two employee stories if you would indulge me
  • Just I thought that you'd like to know about and kind of indicative of the work that goes on here at the port
  • On Saturday, February 3, harbor marina operations specialist Mike Sank prevented a Suquamish tribal fishing vessel from sinking at Bell Harbor Marina
  • Mike noticed the vessel was taking on water and immediately deployed a dewatering pump and contacted aye
  • manager, customer service manager Lonnie Gellings recreational boating senior manager Carlina Smith, port senior manager of tribal relations our own Roxanne Murphy, who was just here, and others took immediate steps to pump out the water, identify and locate the vessel owner, and ultimately save the vessel from sinking at the dock
  • It's a great example of the teamwork and the positive port and tribal relations that prevented of how that worked together can accomplish something and prevented damage to a vessel and to the environment that would have been impacted
  • As another example of port employees going above and beyond for the good of our organization, the community, several port employees currently serve as mentors to the sophomores of the maritime high school
  • Last month, Shauna C
  • Winter, DJ Lewis, Juan Martel and Andy Gregory took work one step further by bringing 40 students to the marine maintenance facility for field work experience, visit employees from six shops, set up demos and toured the students through rotating stations featuring millwork, carpentry, plumbing, electricals, storeroom and teamsters
  • Thank you to our mentors and their coworkers who took in organizing this fantastic event for the students at Maritime High School
  • Finally, on January 31 and February 1, the Cruise Lines International association hosted its first ever Pacific Northwest Symposium at the Bell Harbor Conference center
  • The symposium brought together CLIA's cruise line members, executive partners, business community partners and special guests to discuss economic development, cultural recognition, sustainability, accessibility and other opportunities for the cruise industry throughout the greater Pacific Northwest region, including Washington, Alaska and British Columbia
  • The symposium had over 300 participants showing great interest in our Pacific Northwest cruise business
  • We appreciated the opening remarks by Alaskan Governor Mike Dunleavy and several of aye
  • cabinet and staff who flew down just for this event
  • Thanks to all the port staff who worked overtime with CLIA to put this event together
  • Moving to today's commission meeting, I'd like to highlight just a couple of items on our action agenda
  • We have several items related to asset preservation, renewal and replacement
  • Item eight h on your consent agenda will replace domestic water lines that serve vessels at pier 90 and 91
  • Item eight e is requesting authorization for additional funding for the terminal 91, berth, six and eight redevelopments, which is critical to supporting maritime operations
  • Also on our action agenda is a request for the authorization of the next cycle of our economic Development Partnership grant program
  • The last cycle was a two year program authorized in 2022 and focused on economic recovery and small business assistance
  • The one year cycle we are requesting authorization for today will incorporate stronger metrics and equity considerations
  • You will also see a briefing on our international advocacy priorities
  • As the port continues to be a leader in many areas such as equity, innovation and environmental stewardship, it is important that we make our voice heard on the world stage
  • This briefing will highlight some of the opportunities we have to do that in the coming year
  • Commissioner, with that, that concludes my remarks
  • Thank you
  • Thank you Executive Director Metruck for that thorough update
  • Any questions? Great
  • Thank you again
  • We will now move to committee reports
  • Erica Chung, Commission strategic advisor will provide that report
  • You have the floor
  • Good afternoon President Mohammed and commissioners and executive director of Metruck
  • I have two reports for you today
  • The first is Highline forum
  • Meeting of the year was held on January 24 with commissioner, fellow and chairing
  • The main focus of the meeting was reviewing of the top issues from each of the nine forum members 2024 state legislative agendas including Highline College, Highline school districts, cities of Tukwila, Sea-Tac, Normandy Park, Federal Way, Des Moines, Burien and the Port of Seattle
  • Common issues among the forum members included funding options, workforce development, support for funding behavioral health services and facilities, helping to facilitate the funding and recruitment of public safety professionals, legislation concerning aviation impacts on near airport communities, funding and guidance on addressing the large influx of asylum seekers and immigrants, bills to enhance tourism and tourism promotion, and various capital budget requests
  • Members also received updates from Chipper Manning, aviation, Port of Seattle Aviation Natural Resource Program Manager on Aviation Land Stewardship Plan and tree replacement standards for Commissioner consideration in March 2024 and Aviation managing Director Lance Little on December 2023
  • Start meeting focused on the start of the process for a new part, 150 noise study
  • Members also selected the forum's community co chair for 2024, who is Des Moines City Council member Matt Mahoney
  • On January 26, Commissioner Hasagawa and Calkins convened the Equity and Workforce Development committee meeting
  • There were two items for briefing and discussion, a review of the proposed Equity and Workforce Development Committee work plan for 2024 and a high level preview from Economic Development Division, the Office of Equity, Diversity, inclusion and the workforce development team on what the teams will be working on in 2024
  • This concludes my report
  • Thank you
  • Thank you, MRS Chung for that update
  • Are there any questions for Erica Chung? Thank you again
  • We will be moving on to the public comment section of our agenda, and I just want to say I know that there are a number of our electricians who are here and so thank you for the hard work that you all do appreciate many of you being here today
  • We are now at the public comment section of the agenda
  • The Port Commission welcomes public comment as an important part of the public process
  • Comments are received and considered by the commission in its deliberations
  • Before we take public comment, just a reminder that the commission's rules for public comment have recently changed
  • This means that our public comment rules recording has also changed
  • Let's review our new rules in person and virtual public comment
  • Claire Clark please play the recording
  • The Port of Seattle Commission welcomes you to our meeting today
  • As noted, public comment is an important part of the public process, and the Port of Seattle Commissioner thanks you for joining us for the efficient operation of meetings and in order to maintain decorum in the meeting room, the commission has adopted rules of procedure governing public comment and audience attendance
  • Before proceeding, we will overview those rules for your general information
  • Each speaker will have two minutes to speak unless otherwise revised by the presiding officer for the purposes of meeting efficiency, and the speaker shall keep their remarks within the allotted period of time, provided a timer will appear on the screen and a buzzer will sound at the end of the speaker's comment period
  • The commissioner limits comments specifically to items on its agenda and items related to the conduct of port business
  • If comments are not related to these topics, the presiding officer will stop the speaker and ask that comments be kept to those topics
  • This rule applies to both introductory and concluding remarks
  • All remarks should be addressed to the commission as body and not to individual commissioners outside of the context of action taken in their official port capacity
  • Disruptions of commission public meetings are prohibited disruptions include, but are not limited to, the following speaking when not recognized to speak by the presiding officer holding or placing banners and signs in the meeting room in a way that endangers others or obstructs the flow of people or view of others at the meeting intentionally disrupting, disturbing or otherwise impeding attendance or participation at a meeting refusing to follow the direction of the presiding officer or security personnel speaking on matters other than items on the agenda or topics related to the conduct of the port business attempting to use the comment time for purposeful delay, including remaining silent or engaging in other activity without conveying a discernible message using the comment period for the purpose of assisting in a campaign for election of any person to any office or for the promotion of or opposition to any ballot proposition, except when addressing action being considered or taken by the commission on a ballot proposition appearing on its agenda directing public comments to the audience engaging in abusive or harassing behavior, including, but not limited to, derogatory remarks based on age, race, color, national origin, ancestry, religion, disability, pregnancy, sex, gender, sexual orientation, transgender status, marital status, or any other category protected by law, the use of obscene or profane language and gestures, assaults or other threatening behavior, and sexual misconduct or sexual harassment
  • For safety purposes, individuals are asked not to physically approach commissioners or staff at the meeting table during the meeting
  • Individuals may provide written public comment before or after the meeting and, in addition, speakers may offer written material to the commission clerk for distribution during their testimony to the commissioner
  • If a meeting is disrupted by an individual in attendance in the meeting room or by an individual providing public comment in person or virtually, the following procedures are adopted
  • A first disruption will result in the presiding officer warning the individual that the disruptive conduct is out of order and that a further disruption will result in the speaker's loss of speaking privileges
  • A second disruption at the same meeting or within 90 days after the first disruption will result in a loss of speaker's privileges
  • The presiding officer will end the individual's comment period and will announce that any further disruption by the individual within the next 180 days will be grounds for exclusion from commission meetings
  • If additional disruptions occur within 180 days from the loss of speaking privileges, the individual shall lose attendance privileges for commission meetings for 180 days thereafter
  • This applies to individuals who are in person or attending virtually
  • If, during the three years following a 180 day period of exclusion from commission meetings, an individual engages in another disruption, the individual shall lose attendance privileges for the commission meeting for a one year period thereafter
  • Written materials provided to the clerk will be included in today's meeting record
  • The clerk has a list of those prepared to speak
  • We are taking comments from anyone who has signed up to speak virtually, as well as from anyone who has joined us in the chambers when your name is called, if you are joining virtually, please unmute yourself
  • Then please repeat your name for the record and state your topic related to an item on the agenda or related to the conduct of port business
  • If you are on the team's meeting and at the same time streaming the meeting on the website, please mute the website stream to avoid feedback
  • When you have concluded your remarks, you may again turn off your camera and mute your speaker
  • If you are speaking from the room, please come to the testimony table, repeat your name for the record and state your topic related to an item on the agenda or related to the conduct of port business
  • Our public comment period will now commence
  • Thank you again for joining us today
  • Clerk Hart, that WSDOT your Voice
  • That was not my voice
  • No
  • Clerk Hart, please call the first speaker
  • Yes, let me go ahead and get our timer up here and share what sound, because I neglected to do that
  • Thank you
  • Thank you
  • We do have about nine speakers signed up today
  • I'll start with our virtual list, beginning with the mayor from the city of Des Moines, Tracy Buxton
  • Good afternoon
  • Thank you
  • Good afternoon, commissioners
  • My name is Tracy Buxton
  • I'm the mayor of Des Moines
  • I'm here to support the intent of order 20240 four
  • So I'm not sure, but I believe that the pulled item ten d would have addressed this order
  • May I have permission to speak to the item as it will soon come forward in an amended form? Yes, you may
  • Okay
  • Thank you
  • So I wanted to say I appreciate Commissioner Mohammed's response to the community in bringing this mitigation order to the forefront
  • The intent of the order works in tandem with bills that are actively being brought forward in our legislature, and also with the advocacy that we are feeling from our legislative coalitions in the 30th and 33rd districts
  • And it's particularly responsive, though, to the needs of our diverse airport communities, which is really
  • Which goes to the heart of what I do
  • I understand that the intent of the order is that $5 million be allocated directly to remediation and that assessment, design and planning would be in addition to this
  • With that in mind and with further clarity being planned for order 20240
  • Four
  • I'm very much in support of remediation for our flight affected residents
  • Thank you for bringing this forward, Commissioner Mohammed
  • Thank you, Mayor Clerk Hart
  • Next speaker
  • Thank you
  • We'll go to the room beginning with Alex Zimmerman
  • Alex, please go ahead and restate your name for the record and your topic on the agenda or related to the conduct of port business
  • Please, when you're ready
  • Yeah, I will
  • Sorry, a little bit complicated for disabled old men
  • Yeah
  • My name Alex Zimmerman
  • Open
  • Go ahead and state your topic and then I'll start it
  • Alex, I don't want to cut out of your time, so go ahead and state your topic first
  • Yes
  • Alex Zimmerman, your topic
  • Oh, my topic
  • I want to speak about public testimony procedure
  • But it's today brand new
  • Thank you
  • Alex, your timer is on
  • Ok
  • My name is Alex Zimmerman
  • I'm president of Stand up America
  • This very interesting public testimony
  • This reminds me something
  • What is I see before in human history
  • You know what has been
  • Whereas you find this limitation in rules of limitation
  • For example, Adolf Hitler and Nazi in Germany under Wehmer's public constitution did
  • Exactly what is you doing? Where is you find these rules? The Port Nazi Gestapo rules
  • You know what is mean? We have a US supreme court
  • We have a dozen another court for last 50 years
  • What is explained? What is mean? Freedom of speech? Where is you find this limitation? Who are you? Are you staying above because you belong to Nazi Gestapo junta, democratic junta
  • This is exactly what has happened
  • Exactly what is you doing this? You bring these rules to thousand and thousand people
  • Seattle have similar rule ten years ago
  • And whose you see Seattle Nazi rules use only against Alex Zimmerman
  • I have 16 trespasses for 1400 day for a year
  • I cannot go and speak
  • Guys, you don't understand why you're doing this
  • With these rules you stay in above constitution about us supreme court, about dozen court decision
  • You cut freedom of speech by definition
  • Who are you? You look to me like exactly identical
  • What is Nazi in Germany? What is Aden Wehrmer constitution did everything Hitler put in concentration camp
  • A million and million people only because they have different opinion, different religion
  • That is exactly who you are
  • A Nazi Gestapo, fascist, a junta
  • Stand up, America
  • Thank you
  • Very much
  • Clerk Hart
  • Next speaker
  • Thank you, madam Commissioner president
  • Our next speaker is joining us virtually
  • Her name is Jeannie Ash from the city of Bothel
  • Good afternoon, madam
  • Sorry, Jeannie
  • If you could go ahead and restate your name for the record and your agenda item or topic related to the conduct of port business, please
  • Yes, I will
  • Good afternoon, Madam President, commissioners
  • My name is Jeannie Ash and I am the economic development manager for the City of Basel and I'm here to thank you for your ongoing support of the Economic Development Partnership grant program
  • The city of Bothel has benefited from this program over the past several years and we have used grant funds in a variety of ways
  • We have used them to augment our budget for a sub area plan in our life science and manufacturing sector
  • We have used it to conduct a market analysis and feasibility study for a hotel on a piece of surplus property and we have also used it to provide technical assistance for women and minorities who participate in our retail incubator program
  • But I truly believe that it's been the past two years in post COVID when these grant funds have had the most impact
  • When we've been able to market our underrepresented businesses with these funds, almost 100 micro businesses, most of them, many of them women and minorities, have been able to showcase their goods and services to an audience of more than 1000 people in a course of one afternoon
  • We want to continue to build on these programs and these projects and build on these successes
  • Basel is a small community with limited staff capacity and we use these grant funds to collaborate with other service providers to deliver these services
  • So thank you once again for your support
  • And I also want to thank Dave McFadden for aye
  • leadership
  • Thank you Jeannie
  • Clerk Hart, next speaker thank you
  • Our next speaker from the room is Matthew Fink
  • Matthew, please can restate your name for the record and your topic or agenda item related to the conduct of portion
  • Matthew Fink, pay equity is your mic on? Matthew, can you hear me? I think so
  • As stewards of pay equity and practices in our community, the Port of Seattle has long championed transparency and fairness and compensation
  • Just as the Port of Seattle definition of pay equity and philosophy dictates, creating pay equity entails consistently applied policies and practices without bias and discrimination
  • This philosophy must be extended to all employees, including those represented by various unions at the port
  • Represented workers are integral to the port's operations and deserve equal treatment in matters of pay equity
  • Just as the port proactively applies pay equity methodology to non-represented employees, the same commitment must be extended to your represented workforce
  • Any disparities and compensation must be properly addressed regardless of whether the employee is represented or not
  • All workers deserve fair compensation that reflect the value of their contributions and expertise
  • The port's dedication to pay equity means whether an employee again is represented or not shall have no bearing on the fairness of their compensation by maintaining simple bias free processes and regularly review their compensation
  • Comparing apples to apples with a pay equity lens, the port should uphold the commitment to fairness for all
  • Any notion of discounting their labor would be undermining the principles of fairness and pay equity that the port upholds in the community
  • In conclusion, the Port of Seattle's pay equity philosophy mandates equal treatment for all employees regardless of representation status
  • By extending your principles of transparency, fairness and accountability to your represented workforce, the Port of Seattle should uphold the commitment to eliminating disparities, fostering an inclusive and equitable workplace for all represented and non represented employees
  • Thank you
  • Thank you sir
  • Clerk Hart, please call the next speaker
  • Thank you
  • Our next speaker, joining virtually is Denise Utley
  • Denise, please go ahead and restate your name for the record and your agenda item or topic related to the conduct of port business
  • Hi, my name is Denise Sutley
  • I'm a Sea-Tac resident and I am here to comment on your order titled sound Installation and repair and replacement program
  • Sorry, may I ask am I able to share my screen and show a photo? If not, it's okay without us having the ability to review that first
  • I would leave that up to you
  • No worry
  • Okay
  • I just don't have the option on my screen turned on so I'll just proceed
  • That's okay
  • Okay
  • I think that is a limitation Denise, of our own system on this end is what I'm hearing
  • Thank you
  • Okay, thank you again
  • My name is Denise Atlene, Sea-Tac
  • My port package was installed in February of 2000
  • At that time the port paid $44,000 for my install
  • The port contracted window manufacturer at that time for myself and for hundreds of us was a company called Alpine Windows
  • Five months after my installation in July, alpine windows declared bankruptcy and our warranty on our expensive windows was gone again
  • My home was $44,000 for just one home and no warranty on those windows
  • My windows began failing within three years
  • This included fogged glass, mold, leaking water damage, and water damage to my wood framing and drywall
  • Contrary to past previous comments, this is not considered to be normal wear and tear
  • In 2007, several of us and our windows were even featured on King five evening news in a segment titled Port under Fire
  • And again on King five's upfront with Robert Mack
  • In summary, the port had contracted the manufacturers of the windows
  • The port had picked the listed contractors that we were allowed to use, and the port paid for myself $44,000 to have this work done
  • But unfortunately, at that time, the port didn't stand behind any of that
  • So I have now had to pay out of pocket to have several of my port windows replaced, and I have many more to go that I can't even see out of
  • It doesn't seem right that we're paying for that to replace this damage that was caused by this program
  • We do understand that the program has evolved greatly and that oversight and quality has also improved greatly
  • Your support of this order will help all of us that weren't so lucky with our packages to replace the damage to our homes and experience the satisfaction of today's rate port improvements
  • Thank you guys so much
  • Thank you, Denise, for your comments
  • Clerk Hart, please call the next speaker
  • Thank you
  • Our next speaker joining us from the room is Nicole Grant
  • Nicole, please restate your name for the record and your agenda item or topic related to the conduct of port business, please
  • Thank you
  • Good afternoon
  • My name is Nicole Grant
  • I use she and her pronouns, and I am here to speak on the relationship between the international Brotherhood of Electrical Workers, Local 46 and the Port of Seattle
  • Well, would the members of IBW 46 please stand? I am grateful to all of you for taking time out of your busy days, including using your PTO to be here together to give a message to the port
  • I can tell you from personal experience that these are the best electricians in King County
  • I look around this room, I see people that I went through a five year apprenticeship with
  • I see people that I worked with at the Port of Seattle for years and years who know everything about these systems, who are essentially their know this workforce is invaluable
  • I think there comes a moment in even good relationships when people feel taken for granted, and that's how this situation feels with our collective bargaining agreement with the Port of Seattle
  • It's been 15 months, and I'll leave it to the people at the negotiating table to cover the details and to know that information
  • But I know our demand to be fair, to be something that everybody else in the trades at the port has, and to be completely within the port of Seattle's budget
  • I think that there is an opportunity to reestablish strong relations going forward, but I want to be clear that this is not going to go away
  • We secured a sanction from the Seattle building trades today for our informational bannering, and we're going to keep it up until we get a fair contract
  • Thank you, Nicole, for your comments
  • Clerk Hart, please call the next speaker
  • Thank you
  • I had a runaway buzzer there for a moment
  • Our next speaker joining us virtually is Elizabeth Burton
  • Elizabeth, please restate your name for the record and your topic related to the conduct of port business or an agenda item? Hello, I'm Elizabeth Burton
  • My topic is item eight I, the tourism marketing support program
  • Item eight I asks for $600,000 of taxpayer money for the express purpose of increasing air traffic through SeaTac airport
  • This program will make businesses throughout Washington state even more dependent on air travel than they already are at a time the world is poised to blow past 1.5 degrees of warming
  • The port is studiously ignoring the climate impacts of these additional flights while simultaneously claiming that this program promotes responsible and sustainable tourism
  • In addition to offending common sense, this oversight violates guiding principle number six of your responsible travel handbook
  • Account for all tourism costs
  • Another quote from your handbook it is not possible to make sound decisions without data
  • Yet the analysis of the pros and cons of this program is so lacking in data that it's useless
  • Alternative two, fully funding the program has no cons listed at all, only pros
  • A serious analysis would include and quantify the following cons
  • The greenhouse gases emitted by the additional flights and the suffering and early deaths residents of near airport communities will experience from the pollution and noise generated by these flights
  • Not only is this data necessary for any responsible evaluation of the program, but King county taxpayers deserve this level of transparency about how this use of their money will harm them, their children, their communities, and the wider world
  • Your automatic approval of programs that increase flights with no consideration or acknowledgment of the resulting harms is a profound failure of leadership
  • Item eight I has been taken out of the consent agenda
  • I urge you to postpone voting on it until you have an analysis of the pros and cons that includes the climate and public health impacts of the additional flights that will generate
  • Thank you
  • Thank you
  • Elizabeth clerk hart, please call the next speaker
  • Thank you
  • Our next speaker joining from the room is Katie Garrow
  • Katie, please go ahead and restate your name for the record and your agenda item or topic related to the conduct of port business, please
  • Thank you
  • Katie Garrow
  • I'm here to talk about the IBW 46 contract
  • My pronouns are she and her
  • Good afternoon, commission, and good afternoon, brothers and sisters
  • On behalf of the hundreds of thousands of union members in King county, who MLK labor represents, including research scientists, machinists, dock workers, teachers, bus drivers, flight attendants and many other trades in our economy
  • I want to express our unified and full throated support for the IBW 46 members here in this room last week at the state of the port, and even here during Admiral metrics report, we heard about the successful and profitable year that the Port of Seattle had in 2023
  • And that is great news and we celebrate it
  • What we ask for as working people who make the Port of Seattle run is that that prosperity be shared with us in such a wealthy place, at such a healthy organization, there is no morally defensible reason not to pay IBW 46 members who work here at the port in line with what they make in the external market
  • Finally, I want to say that a fight about money is never really about money
  • A fight about money in a contract negotiation is about dads who can afford to give their kids braces
  • It's about families taking a long awaited vacation
  • It's about adult children who are working and being able to afford a caretaker for a parent to make sure they take their meds on time
  • And finally, it's about signaling respect, like Nicole talked about, that you respect the contributions of the people who make this organization run and that you respect the contributions of people who work for a living
  • The last thing I want to raise is that I think IBW 46 is positioned to be a stellar partner of the port of Seattle because of your values about climate change and environmental stewardship
  • The IBW is well known nationally and within the labor community for their advocacy to reduce carbon emissions and to electrify so many of our resources
  • Thank you
  • Thank you, Katie
  • Clerk Hart, please call the next speaker
  • Thank you
  • Our last speaker signed up today, virtually, is JC Harris
  • JC, please restate your name and your topic related to the conduct of port business or the agenda item
  • Thank you
  • My name is JC Harris and I am speaking on behalf of the now pulled ten B
  • I wanted to report a bit about what I heard in Olympia because I believe that what you're proposing is in alignment with the state proposals
  • And I heard quite a bit of, well, we'd really love to
  • And there were several ideas for alternate funding
  • And if you try to talk about tweaking things to make it a better bill, immediately things get taken off the table
  • For me, this has to be something that becomes a better proposal
  • And I would just suggest that this is really about the home more than the homeowners
  • As maybe, grading as that may sound, the idea is to protect the homes through the generations
  • That's why people sign the perpetual navigation easement
  • It's not about any individual owner, and so I hope you'll be open to tweaking your proposal to make it more efficient
  • I'll just tell you that this is about middle housing
  • The equity will take care of itself
  • And I want people to understand we've been at this a while and it is a justice issue and it's not a recent issue
  • We have tried to avoid blame, but this goes back to the 90s
  • It's the reason that I've sent you information about how long standing these issues have been
  • We don't want to get into blame because conflict doesn't get anywhere
  • But let's be candid here
  • I testified with your lobbyist in 2019 on HB 20 315 to make it possible for you to do the updates
  • It's been almost five years, so I think people quite rightly feel that the clock has been ticking, and I'll just close by telling you that every month you wait, it literally takes homes off the table
  • Please act now
  • Thank you JC, Clerk Hart, was that the final speaker? Okay, well, that concludes our sign up for today
  • Is there anyone else present on team's call or present in the room today who didn't sign up but who wishes to address the commissioner hearing? None at this time
  • I'll ask the clerk to please give a synopsis of any written comments received
  • Thank you, Madam Commission President
  • Members of the Commission Executive Director Metruck we've received nine written comments for today's meeting
  • I'll try to move through these quickly
  • They've been previously emailed to the members of the commission and will become a part of this meeting's record
  • The first comes from James Henderson, economic development manager for the City of North Bend, who writes to support item ten A on the agenda, the Port of Seattle's economic Development Partnership grant program, noting that the program is a valuable resource to rural communities and allows them to implement innovative and collaborative initiatives to support their small businesses, increase needed tax revenue, and foster collaboration among economic development partners such as the Snow Valley Chamber of Commerce
  • Our next comment comes from Sharon Parker, retired noise officer and sound installation program manager at King County International Airport at Boeing Field and secretary of the Quiet Skies Coalition, formerly of Burien and the City of Burien's airport committee for four years
  • He writes to state that the timeline associated with item ten B, the sound installation order, is unrealistic, asks if FAA guidelines regarding eligibility will be followed, asks if homeowners understand what's contained in the equity index database and speaks regarding the WSDOT and PSRC expert arbitration panel review of noise and demand System management report issued March 12, 1996, and its related findings
  • Our next comment comes from Janet Quinn, city of Kenmore, who writes in support of agenda item ten A, the Port of Seattle's economic Development Partnership grant program, noting how critical port funds have been to their work as a small city without an economic development staff, and speaks to the assistance the grant provides
  • Derek Speck, economic development administrator for the city of Tukwilla, also writes in support of agenda item ten A, noting that the grants have been very helpful to the city as they have been used
  • They've used the grants for tourism promotion, small business assistance, and attracting aerospace businesses
  • Kimberly Elertson, executive director for the Woodinville Chamber of Commerce Rights and Supportive Agenda Item Ten A, noting that the Economic Development Partnership grant program has played a crucial role in bolstering Woodinville's local business economy and enhancing tourism in northeast King County
  • Michelle Evans, council member for the City of Woodinville, also writes in support of Agenda Item ten A, stating that the program has been instrumental in helping Woodinville rebound after the COVID-19 pandemic and has allowed the city to partner with the local chamber to promote local businesses in the community and to support tourism
  • Jen Davis Hayes from the City of Issaquah also writes in support of agenda Item ten A, reauthorization of the port's economic development partnership grant program, stating the program has been integral to Isaquah's ability to start and grow a shop local program
  • Isaquah loyal support entrepreneurial businesses assistance through a regional partnership start at 425, support regional economic partnerships with their chamber and more
  • Nicole Weeby, City of Snoqualmie writes in support of agenda Item ten A, stating that the proposed one year timeline would be appreciated, the funding increase is appreciated and the emphasis on marketing is a perfect fit for the needs of the community, allowing the flexibility to leverage, collaborate and or supplement the city's budget for tourism and economic development
  • And then Elizabeth Burton submitted written comments in support of her spoken comments earlier here in this meeting, and I do believe we had another written comment come in after the deadline that has also been distributed to you and will be included in the meeting's record, and that concludes the written comments received today
  • Thank you, Clerk Hart, for that synopsis
  • Hearing no further public testimony, we'll move on to the consent agenda
  • At this time, items on the consent agenda are considered routine and will be adopted by one motion
  • Items removed from the consent agenda will be considered separately immediately after adoption of the remaining consent agenda iteMS At this time, the chair will entertain a motion to approve the consent agenda
  • Items covering items eight a, eight b, eight c, eight B-A-E-A-S eight G-A-H and eight j
  • So move second
  • The motion has been made and seconded
  • Commissioner, please say aye or nay when your name is called for approval of the consent agenda, beginning with Commissioner Calkins
  • Aye
  • Thank you
  • Commissioner Cho
  • Aye
  • Thank you
  • Commissioner Felleman
  • Aye
  • Thank you
  • And Commissioner Mohammed
  • Aye
  • Thank you
  • Four ayes, zero nays for this item
  • The motion has passed
  • So going back to item eight I, that was removed from the agenda
  • Removed from the consent agenda
  • At this time, I'll ask the clerk to introduce the item or read the item into the record, and Executive Metruck will introduce it
  • Thank you
  • This is agenda Item eight I, commission authorization of the 2024 2025 Tourism Marketing Grant program and authorization for the Executive director to approve execution for all related contract agreements for the 2024 25 selected tourism marketing support program recipients in an amount not to exceed $600,000
  • Commissioners, you received details about this program during the tourism development briefing at our last meeting
  • Today we're asking you to authorize our port tourism marketing grant program
  • This initiative, which provides matching funds to tourism partners across the state, helps market travel opportunities that use sea in our maritime gateways
  • Nicolianti, the director of tourism development is here to answer questions regarding this
  • Thank you, Executive director, Metruck
  • We'll start with Commissioner Felleman
  • Thank you, Nick
  • And it's a great presentation that we're not going to make you go through
  • It's very self explanatory, and I just want to express my appreciation for the commitment to expanding not just the amount of money, you're doubling the budget of the program
  • You're doubling the amount of money that any one project can receive from 10,000 thousand, $20, as well as expanding the scope of projects that are eligible or emphasizing projects that were previously not a focus
  • So all of these things I see as very positive, and so getting into things like accessible and cultural and DEI and ecotourism related things are just this natural evolution of the port's interest in tourism
  • And we salute that
  • My question really has to do with the sort of like, the evaluation, scoring, and coordination with other entities that are also doing tourism prograMS I see how you've evolved the scoring to just get it down to, like, four major bullets
  • The overall impact, the shoulder season, impact DEI and environmental
  • And obviously within there
  • There's a lot of subtexts to have
  • Right
  • I was just wondering, do we have a panel at the port that reviews this? Do you take external? A
  • Last year, for example, we had a four person panel, all port employees, that include myself, Gail Mueller, our tourism project specialist, causeway Ishuada from the airport, and Stephanie Riley from maritime marketing
  • And that panel can change each year
  • But it's always been internal experts within the port that evaluate each of the proposals
  • And then after each judge evaluates proposals on their own, we have a meeting of all the judges together to go through them one by one to compare notes
  • And obviously, a lot of the proposals are neck and neck as it gets down there
  • So they make those determinations
  • There are no external
  • I'm just thinking, as we're expanding into these areas that are relatively new, the man who gave that presentation at the CLIA conference, the accessibility speaker, was just extraordinary
  • And I know we've done a lot of work with accessibility issues at the port, but that was like this huge realm of expertise, specifically that was specific primarily to cruise
  • But then he's talking about the seamlessness between the airport and the cruise
  • I just think there's a talent pool out there that I didn't know whether as advisors or something like that, you might consider to
  • Obviously, it's the port's money
  • Ultimately, it should be the port's decision or it's the public's money
  • The port is making these decisions
  • But I'm just suggesting that potentially that would be helpful
  • And then Washington state tourism, and there are others, I believe, that also have grant programs and that
  • To make sure that we're not double dipping or somebody's double dipping
  • Right
  • And I am aware of the other grant programs, especially the state, and ours is very much focused on tourism marketing for our local partners
  • And I am open
  • I inherited this program last year when I joined, I had some of the same questions
  • Can we bring in external judges? And I'm open to having that conversation with CPO, see what the rules are within the Portuguese
  • But that's up for consideration
  • All right, well, thank you
  • I really did not have anything but appreciation to express for it
  • I guess with our diversity and contracting, we have like goals, right
  • We want to have x amountage of this, that, or the other thing
  • I see the way we have it here is like we're allocating points, waiting for these different components
  • So previously we did have a goal of 50% of the awarded grants to reach, to be DEI focused, environmentally focused
  • And the way we're doing it this year is we'll really be able to have more of an ecotourism score at the end of this, a score that we can work to improve year after year
  • Based on the evaluations of all the programs, we'll be able to have that number for DEI programs for what had the best impact on shoulder seasons and what had the best impact on ecotourism and give us so sort of the evaluation within each category
  • Right
  • We will be able to have numbers like that that we can work to improve each year rather than trying
  • We run into some of these programs, check multiple boxes
  • Right
  • At a different level
  • Some have a very strong impact on DEI, but maybe not so much environmental
  • This will give us a score that we can work to improve in the future and a base point moving forward
  • All right, last, but last
  • So I do know that originally we were talking about environmental type tourism
  • Getting people outdoors was a good thing and that we would support organizations that provided outdoor experiences
  • Obviously, we need to do, in addition to that, this stewardship of those resources
  • We're encouraging people to put sort of more pressure on
  • And I know the handbook that you've created has very much guidelines like that, and you will be using that in the evaluation process
  • I guess I would love to make sure that we hear about how these environmentally targeted or culturally targeted programs are stewarding as well, that I will leave you to be great productive
  • And it starts, like, in April
  • Right
  • Your grant applications open up in April
  • If we're authorized today, we'll launch tomorrow
  • But decisions are made like, decisions will be made
  • The deadline will be the end of March
  • End of March
  • All right
  • So get busy applications
  • All right
  • Thank you
  • We'll consider that approvement
  • Are there any additional questions from the commissioners? All right
  • Hearing
  • No further questions for this item
  • Is there a motion and a second to approve item eight? AI, so moved
  • Second
  • Great
  • The motion has been made and seconded
  • Clerk Hart, please call the roll for the vote
  • Thank you
  • Beginning with commissioner Calkins
  • Aye
  • Thank you
  • Commissioner Cho
  • Aye
  • Thank you
  • Commissioner Felleman
  • Aye
  • Thank you
  • Commissioner Mohamed
  • Aye
  • Thank you
  • Four ayes, zero nays for this item
  • The motion passes
  • Congrats
  • Moving on in the agenda, we have three new business items today
  • Clerk Hart, please read the first item into the record
  • Executive Director Metruck will then introduce the item
  • Thank you
  • This is agenda item ten
  • A authorization for the executive director to execute contract agreements and to implement the 2024 Economic Development Partnership program with King county cities in an amount not to exceed $900,000, including authorization for the executive director to execute contracts using unutilized program funding to advance regional initiatives to further equitable and small business recovery
  • Commissioner
  • Our Economic Development Partnership program is an important part of our economic development strategy
  • In 2021, city partners provided outreach and assistance to over 1000 businesses across the region
  • The 2022 2023 cycle of this program focused on relief and economic recovery efforts
  • This request is to authorize a one year program with a greater emphasis on equity
  • So presenters this afternoon are Dave McFadden, managing director, economic development, and Annie Tran, economic development manager
  • So, Dave
  • I'll turn it to Dave for introductory
  • Good afternoon, commissioners and executive director, Metruck
  • Let's go ahead and get the slide deck going
  • We're pleased to be here today and we're asking you to authorize our city economic development partnership program for one year going forward
  • Hang on a second for me
  • Yeah, wait for the deck
  • Excuse me, don't I have it? Yes, that's okay
  • Aubree's computer went down
  • Give me a moment
  • Here we go
  • Okay, next slide, please
  • So, yeah, we're requesting authorization to implement this program for another year in a tune of not funding, not to exceed $900,000
  • Let's go to the next slide
  • We created this program in 2016 to really extend our visibility, reach and impact across the region and build deeper partnerships with the cities
  • The program works under the from following parameters
  • We provide matching grants, 5000 at a minimum to 60,000 as a maximum based on a per capita population formula
  • The cities do match this funding 50%, so they do have skin in the game
  • And the only other thing I want to mention is we really did a big pivot during COVID We put more emphasis on small business relief and rebuilding our local tourism industry as priorities
  • So with that, I'd love to turn it over to our economic development manager, Annie Tran, who will highlight some of the impacts of the program over the last couple of years
  • Introduce a few of our guests from cities to talk about their results
  • Thank you so much, Dave
  • Commissioners, we're so pleased
  • Next slide, please
  • We're so pleased to share with you that 27 cities participated in the last grant cycle between 2022 and 2023
  • And as you can see here, most of the funding went to support small business assistance by local employee placemaking projects as well as tourism and the port
  • Port's share distributed $1.4 million to support these efforts, and it really helped us build and solidify partnerships with cities across King county and increase the visibility of the port's impact and commitment to economic development across our region
  • So, as you can see here, the cities also invested more than 50% that was required and amounted to a total investment of $3.1 million, which we're really proud of
  • Next slide
  • As for some of the cumulative business impacts, as you can see, it's been incredible in terms of how many businesses they were able to survey, understand how they're currently faring in these current economic conditions, and then really reach out and provide one on one business assistance and the resources they need
  • And so with that, a major component was also dispersing the much needed capital to small businesses during this time in the form of business grants, funding or loans
  • On the next slide, you'll see that these small business programs or initiatives that they provided stemmed from a variety of different types
  • And so it may have looked like forming relationships with their small business development centers in their community, providing tools for technical assistance, and as mentioned, providing the much needed capital
  • And then some of the fun, unique projects also included food incubation, supporting food trucks in Kent and Des Moines
  • On the next slide, you'll also see that the tourism impacts as part of this program were astronomical
  • More than 150,000 attendees to events
  • It secured more than 6700 hotel room nights and 4000 trips made
  • And so we're really proud of these amazing efforts made and done by our cities and part of this partnership
  • And on the next slide, you'll see that
  • On the next slide
  • Yeah
  • Okay
  • Some of the tourism and marketing campaigns examples come from two days in Woodinville to trail maps, really highlighting the local assets that we have in the area
  • And then also some of the major highlights were Enumclaw, where they were able to increase their ticket sales by $200,000 as part of these marketing and tourism campaigns
  • And then later, you'll hear more from Nate from the city of Shoreline, who we have here today to present some information about the unique music and arts and Juneteenth events that they hosted with this funding
  • Next slide
  • So bilocal and place making initiatives were also extremely important during this time, and it was a backbone to supporting a lot of the downtowns and main streets across the region
  • As you can see here, it also drew more than 100,000 attendees to events
  • The cities hosted a number of events and really supported their local merchants during this time, and it was critical to activating downtowns next slide
  • So what did some of these activities look like? It ranged from supporting the farmers markets to various bilocal campaigns in Burien or Issaquah
  • And then later, Corbin Hart from the city of Bellevue will talk a little bit about the placemaking projects they did around the Bell Red Arts district
  • And I will actually ask Corbin to join us up here
  • Thank you Annie, and thank you commissioners for the chance to speak today on this program
  • The Port Ports Economic Development Partnership program is a truly unique asset for the region, having worked in economic development in other regions, the regional collaboration this program enables is really unique to this area, as is the dedicated funding for business support which is often lacking in the region
  • We use funding in the 22 23 time frame on three projects, all of which specifically highlighted the port as a funding partner
  • This included a bi local campaign to drive up foot traffic in our downtown to support small businesses in the wake of the COVID-19 pandemic
  • As a result of this program and others, foot traffic in our old main district increased over 200%, surpassing pre pandemic highs
  • Startup four two five, as mentioned earlier by some other speakers, is a five city regional collaboration focused on entrepreneurship education for underrepresented founders for small businesses and startups
  • The port grant broadly allows cities to pilot programs and projects they wouldn't have had funding otherwise to do, and this is a prime example
  • Since the relaunch of the program in mid 2023, the program has served over 250 entrepreneurs and added 693 subscribers
  • Without this grant, the program would likely not exist, as would the collaboration between the five cities on the east side
  • Finally, we hope to launch a 16 week accelerator program in Q three of this year with a specific focus on diverse founders through Cert four, two, five and last but not least, as Annie mentioned, we also used port funding to launch the BellRed Arts District Community Alliance, a nonprofit focused on supporting creatives and businesses within our arts district
  • They're going into a really strong community partner and have actually received a grant from Sound Transit to run an opening celebration for the two line here in a couple of months
  • So we're really excited for that organization to be up and running and doing the work that would not have been possible without the port's economic development partnership
  • Thank you so much Corbin
  • And next up on the next slide, we'll have tawny join us from Maple Valley
  • Good afternoon port commissioners and happy Lunar New Year
  • My name is Tawny Delzel
  • I am the public works and community development director with the City of Maple Valley
  • I want to just thank you for this opportunity to share the work that we've been doing to promote economic development in our city
  • Maple Valley is located in south King county
  • It's bordered by three state highways, SR 6169 by 16 and Highway 18
  • We are a small city known for high quality schools, beautiful natural resources such as lake wilderness, and in fact, we're proud to say that we have hosted over 80 weddings at the park in 2023
  • As a bedroom community, we value small businesses and it allows us to shop, eat and do business within our community
  • However, we have a very limited economic development staff
  • We do not have a dedicated economic development manager
  • I wear many hats, and one of those is to contribute toward economic development
  • But what I really rely on is our communities Economic Development commission, made up of eleven volunteer residents who are so hardworking and they've been able to use the monies awarded through the Economic Development Partnership grant to do three major items in 2022 and 2023
  • And they include conducting a business survey, a business leakage study, and then using that information to inform our business marketing video
  • Our video can be located at gomapalvalley.com and we have many resources on that website available to small businesses and developers, and we also use that to recognize our community partners, such as the Port of Seattle to support our work
  • So we actually intend to build on the data that we've collected and the marketing video in the next year to host a business summit for local businesses and investors to further develop our economic development program in Lupo Valley
  • And lastly, we just wanted to thank David and Annie and the port for your continued support for small city
  • Thank you so much, Tawny
  • And we'll have Nate from Shoreline come up
  • Thank you, Annie
  • Good afternoon, commissioners
  • It's great to be here to talk about this program and just how instrumental it's been in our economic development efforts in the city of shoreline
  • I'm going to talk about two things and just how this has been really important to us
  • One is diversity, equity, inclusion and belonging
  • And number two, creative economy
  • Growing up here in the port district, I have seen firsthand just how important those two things are being a welcoming place for all and the strength of our creative economy
  • Those two things have really enabled, I think, our regional economy to outperform peer cities around the country, and the city of Shoreline is a part of that
  • It's home to what many would be surprised to find as a diverse, vibrant and growing creative community with recording studios where decades of platinum recordings were made, and women and black, indigenous, and people of a global majority
  • Artisans and artists in all mediums, including filmmaking, ceramics, glass and more, are thriving
  • What you see here are some of the highlights of some of the projects we're able to do in the last couple of years
  • But we've been really an active participant in this program since it began in 2018, and we really appreciate, as some others have said, Dave and Annie the expertise, the knowledge, the hardworking folks you have here, being available to not just your organization, but all of us around the region
  • It's a team sport, and many of us are an office of one
  • And so just by getting together and getting to see the great work that our peers are doing and get ideas of what we can do and how we can help our community, especially through the depths of the pandemic and the economic crisis that that caused for our small businesses
  • It's been great to be a part of a team, and we are very grateful to the port
  • We make sure to say so in our verbal remarks at these events and including the logo of the port in our materials
  • And it's just really enabled us to act on a sweeping resolution adopted by our council a few years ago, a commitment to become an
  • So, just like being a great haven for creatives, the Seattle area's strength has always been about being a welcoming place, and we've seen this
  • So our first ever Juneteenth black owned business, marketplace and music and food event
  • It introduced black owned businesses to hundreds of guests
  • It introduced those folks to the performances and food and culture
  • And it was just a turnout beyond our wildest dreaMS And it was a rainy event, and that didn't stop people from coming
  • Annie was there
  • Thank you for showing your support
  • And our mayor and council are just so grateful for the support to make this happen and are very excited to do it again this year
  • In fact, just yesterday we had our kickoff meeting with Black Coffee Northwest, who's our organizing partner for that event
  • And then our Pride festival is another great example of that, having that at our shoreline farmers market again, also a rainy day, unfortunately, but it introduced the community of Seattle's first ever, first all queer marching band and brought market vendors a 17% bigger crowd than any other rainy day that they had at the farmers market this year
  • So, just, again, an example of how really being a welcoming place for all is just good for business
  • And 96% of those surveyed, those attendees surveyed said it exceeded their expectations
  • So, again, just on behalf of the City of Shoreline, I want to thank the commission for enabling this program, encourage you to consider continuing to do so, and lending us your fantastic staff and support to help us grow our creative economy and launch new initiatives that reflect our community commitment to diversity, equity, inclusion and belonging
  • Thank you
  • Thank you so much, Nate
  • And next, we'll have Jesse Kotarski from the city of Renton
  • Thank you for this opportunity to express gratitude on behalf of the city of Renton for the tremendous support we've received from the Port of Seattle through the partnership program
  • This support has been instrumental in driving initiatives and creating tangible, lasting changes in Renton that continue to foster growth within our community year after year
  • The recent support from the program has made a big difference in nurturing our small business community and boosting the growth of our entrepreneurial ecosystem
  • Similar to the focus that Nate just mentioned in shoreline, it has had a significant impact on developing our creative economy
  • The support from the port has been crucial in filling the gap that previously existed in funding and attention for our creative economy at the city level
  • In the most recent program cycle, the funding allowed us to host a dynamic film competition, which served as a catalyst for creativity and community connections
  • As a result, we've seen a significant increase in film production in Renton, with small business owners receiving the necessary assistance and support to navigate the filmmaking process and access the resources they need
  • The competition, which was open to all and free to participate in, served as an invaluable platform for small business owners and artists to gain recognition and support their craft
  • It significantly contributed to eliminating barriers to entry within the industry and played a pivotal role in establishing Renton as a film friendly city
  • Building on the success of the film competition, the program played a crucial role in creating Renton's first arts and culture hub
  • The space serves as an incubator for artists and arts organizations, providing networking opportunities, skill training, mentoring, support, access to affordable and free gallery and workspace, and a communal area for the exchange of ideas
  • The impact of these initiatives has been profound, fostering not only economic development, but also a thriving entrepreneurial spirit in Renton
  • Last year's main street workshop and pitch competition was a resounding success, showcasing the ingenuity and drive of our small business owners, with over 67 participants, 19 pitching their business ideas to a live audience, and four winners selected that evening by a panel of judges and audience participation
  • We're thrilled to collaborate again this year with our partners at the Renton Downtown Partnership to host another pitch competition
  • It stands as a testament to how the funds from the port serve as a catalyst, sparking ongoing change, nurturing connections, and propelling growth across the region
  • We are grateful not only for the financial backing, but also for the physical support and encouragement from the port
  • Dave and Annie have consistently facilitated connections across the region, and we want to thank Commissioner Mohamed for her participation in the live pitch program last year, which was a huge lift
  • The port's support, coupled with the association with its logo, has added credibility to our prograMS The association often sparks discussions about the port's involvement in the events and the program, attracting crowds and participants interested in regional initiatives
  • These connections exemplify a true partnership with the port and we are immensely grateful for the support
  • Thank you so much, Jesse, and thank you so much to our city presenters
  • We really appreciate your time and being able to help storytell the true partnerships and the solid partnerships we've been able to develop with them through this grant program
  • So, onto the next in this slide in terms of understanding the return on investment with this economic development partnership grant
  • As you've seen, building great relationships, and I know metrics are extremely important and they have been improving and furthering positive relationships and also producing tangible small business development towards them and place making outcomes
  • As you've seen through the storytelling of our city partners
  • We have also heard the grants provided key resources to cities during tough times, especially during the pandemic
  • And I know most importantly, it's brought us all together
  • And so we're just really proud of the great work that we've been able to do collectively and moving the needle on regional economic development over the years
  • So on the next slide, you'll see while the metrics have improved, we really do want to continue tracking these and making sure we have a standardized format for being able to track these well
  • And we also know that smaller cities still need the support
  • As you've heard from many of our city partners today, it's often either a staff of one or no economic development staff established, but community development folks or public works folks are stepping in to really move the needle
  • And so as part of this, we want to better resource them by developing a shared resource site where we can share the archived seven years of reports that have been submitted to us through this grant and be able to have a space to be able to glean the resources, list of consultants and other helpful tools that we've been able to develop through this grant program
  • And so I do want to acknowledge that this idea came from conversations with me and Nate, and it was aye
  • grand idea to be able to create a shared resource where everyone can really learn from each other and continue that partnership
  • On the next slide, you'll see some ideas that we have for moving the program forward in terms of equity considerations
  • We really want to consider a stronger, equitable economic development lens and being able to have a stronger emphasis on measuring these outcomes versus some of the processes
  • We've seen a lot of economic development plans submitted in the past years, but we really want to have tighter parameters around these planning projects and focus on measured outcomes
  • And most importantly, as part of that, collecting standardized metrics to make it easier to aggregate this data, to be able to show the great work, especially for collecting impacts on WMBE and minority owned businesses and BIPOC businesses across our region
  • In terms of us making sure we're meeting our targets
  • And as part of this, we want to make sure that we're enhancing the connection between the cities and their businesses to port opportunities that may be available through our diversity and contracting programs that we have, and so being able to build a bridge across that
  • But all in all, we do want to emphasize that these events and initiatives are welcoming and inclusive for all
  • Next slide, please
  • So, as a recap, today, we are here to request reauthorization of one year to provide funding for this program
  • And we also recognize that a lot of the smaller cities are doing a lot with less
  • And so we are also recommending that we increase the funding from $5,000 for some of the smaller cities
  • And we want to thank you, commissioners, so much for your support over the years, and we welcome any questions that you might have at this time
  • Thank you
  • Thank you, Director McFadden and Annie for the presentation, and thank you to all of our guest speakers
  • Commissioner, we're going to try to separate our meeting procedures moving forward in 2024, making it a clear distinction between staff report, segment of our discussion and commissioner questions for staff vice versa
  • Commission discussion and dialogue with each other
  • The latter shouldn't take place until our main motion is on the floor
  • So let's see if we can actually put this into practice today
  • So are there any questions for staff at this time? Nays? Yes
  • Your questions
  • Commissioner Felleman, I'd just like to commend all those examples and a quick shout out to Maple Valley for your perfect fit or natural fit
  • I'm a pushover for that marketing business
  • But you repeatedly talked about the metrics, wanting to get a little bit more quantitative in your evaluation, and I really don't see the quantification
  • It seems to me that you could have a prompted questionnaire sort of thing, sort of like a job interview
  • Everybody gets asked the same question and you report out at the end of the day, at the end of the grant that you could score somewhat objectively
  • So you express desire to have a better Metruck
  • I'm just wondering, is there some sort of scorecard or something that you use to evaluate success? Great question
  • I think we're looking, as Annie mentioned, more outcome reporting, maybe less process
  • We surveyed 1200 businesses
  • That's great
  • But how many did we help? How many got the assistance
  • And what did that look like? We were capturing some of the funding, as you can see, but it takes a little longer term and a little more patience to capture job creation or other things that result from that assistance
  • That's what we're really trying to dial in
  • By standardizing the metrics that we provide in the application, we're going to at least get everybody onto the same reporting page
  • And I think that's a major refinement going forward
  • Great
  • And by separating it, the staff questions and the commission discussions or debate is actually in alignment with parliamentary rules
  • So thank you, Clerk Hart, for that advice
  • Are there any additional questions for staff at this time? Great hearing
  • No further questions or comments for staff
  • I will now ask, is there a motion and a second to approve item ten a? So moved
  • Second
  • Great
  • The motion has been made and moved
  • Clerk Hart, please call the roll for the vote
  • Thank you
  • Beginning with Commissioner Calkins
  • Aye
  • Thank you
  • Commissioner Cho
  • Aye
  • Thank you
  • Commissioner Felleman
  • Aye
  • Thank you, Commissioner Mohammed
  • Aye
  • Thank you
  • Four ayes
  • Zero nays for this item
  • Thank you
  • Clerk Hart, please read the next item into the record, and then executive director Metruck will introduce the item
  • Thank you
  • Just a reminder that agenda item ten b has been moved to our next meeting
  • So I'll read ten c into the record
  • This is authorization to execute an interlocal agreement with the Puget Sound partnership, enabling the port to receive state funding to support the purchase of equipment to monitor juvenile salmonoid utilization of Duwamish River People's park and shoreline habitat in the amount of $115,000
  • Commissioner, this item is being brought before you because it is an interlocal agreement
  • We're pleased to report that our efforts to restore habitat in the Duwamish river watershed have shown signs of success evident by the return of juvenile salmon to the waterway and spotted at our sites
  • This action will help our efforts through tracking and monitoring of juvenile chinook salmon of our shoreline habitat
  • And presenters this afternoon are Cheryl Jay, director of maritime environment and sustainability, Jen Stevens, the environmental programs manager
  • And I see Kathleen Hurley is mentioned as well, senior environmental program manager
  • So I'm going to turn over to Sarah to kick us off
  • Thank you, Executive Metruck
  • And hello, commissioners
  • Pleasure to be here today to talk to you about this exciting opportunity that the port has
  • And it's also so timely and resonating for me that we're here today during the week that we're recognizing the bolt decision and the right to fish, to collect fish, and to have the activity
  • And this is relative to the work we're going to talk about today, because it relates to salmon recovery, the port has a long and increasing series of activities and interests in salmon recovery
  • A lot of work in the Duwamish
  • We're really excited about Duwamish River Peoples park
  • And you'll hear, Jen will tell you a bit about how the equipment we receive from this, if we get this grant or, excuse me, this exchange with the partnership will help monitor at that park
  • So let's see
  • I wanted to just also note that we're very appreciative to the partnership for being selected as a recipient, and Jen will tell you more about that
  • And we're excited to contribute kind of at a watershed scale to information collecting in partnership with others, the tribes, and King county and other managers that this program will help implement
  • So without further ado, I'm going to pass it over to Jen Stebbings, who will tell you about the grant and the project
  • Great
  • Good afternoon, commissioners
  • As Sarah mentioned, this presentation is to execute an interlocal agreement with the Puget Sound Partnership to purchase a passive integrated transponder array to help with fish monitoring at the Duwamish River People's park and shoreline habitat
  • Next slide, please
  • Great
  • This is just a quick refresher on where the Duwamish sits in the larger watershed and why it matters
  • The Duwamish sits at the very bottom of the green Duwamish watershed and the watershed itself
  • The salmon recovery lead entity has identified priority projects for chinook salmon in this watershed through its salmon recovery strategy
  • So the strategy includes protecting, restoring, and enhancing habitat in the Duwamish estuary subwatershed, where the port sits
  • As you can see, the port has several habitat restoration projects in the Duwamish estuary, and the star on the map there is the Duwamish River People's park and shoreline habitat
  • The Duwamish River Peoples park and Shoreline habitat has been identified as a tier one or a top priority project for the watershed by the green Duwamish salmon recovery lead entity
  • The year one monitoring of a ten year performance standard monitoring program was completed in 2023, and the exciting news is that juvenile Chinook salmon were identified utilizing the marsh basin at Duama Sherville People's park during that fish sampling effort
  • So now that we know that juvenile chinook are using the site, but we want to know how the chinook are using the site
  • So the passive integrated transponder, or pit antennas will help inform how outmigrating juvenile salmon are using the Duwamish River People's park in shoreline habitat
  • And the photo on the bottom there is an example of what our pit array could look like once it's installed at the mouth of the marsh basin
  • Next slide, please
  • Thank you
  • So we request to authorize the executive director to execute an interlocal agreement with the Puget Sound Partnership for funding of $115,000 to purchase this pit array
  • As I mentioned before, the array will monitor how juvenile salmon are using the Duwamish River People's park and shoreline habitat
  • These monitoring data will be provided to agency and tribal partners and contribute to the overall salmon recovery planning in the green Duwamish river watershed
  • With this Puget Sound partnership funding, there is no cost to the port for the purchase of the pit array
  • So that's a good news, partner
  • Next slide, please
  • So this is just a quick overview
  • We are on a rather short timeline because we are hoping to be able to have this array installed in time for this year's juvenile chinook out migration
  • And this is particularly important because King county is performing a complementary project further upstream where they will be tagging thousands of other salmon
  • So any salmon that are tagged upstream could potentially be captured by this pit array in the Duwamish River People's park and shoreline habitat, which is pretty exciting
  • So the scope and schedule of this know, with your approval, we will execute this ILA with Puget Sound partnership and then select a vendor and purchase the equipment, get that equipment installed as soon as possible, and then implement the fish monitoring as scheduled for our regularly programmed performance standard monitoring at the site
  • So with that, Jen, if I could just add, we're really excited and hope to implement this this year and take advantage of some opportunities of those additionally, more than usual tagged fish, as Jen mentioned
  • But this equipment will be an enduring asset that we can continue to use and support the region and tracking salmon recovery in the watershed
  • Yeah
  • Thank you
  • That's important distinction
  • Thank you
  • Thank you for the presentation
  • Are there any questions for staff at this time before I ask for a motion? Commissioner Felleman, thank you very much
  • And this complements my state of the port address very nicely
  • The video, and one of the things that was really great about the bit in the video is that we had wild chinook smolt in the catch, but my understanding about pit tagging is it usually returns to a hatchery
  • So are we pit tagging wildfish? Yes, we will be pit tagging natural origin fish
  • So King county is catching the wildfish, pit tagging them, and then letting them go downstream? Correct
  • They have a smolt trap placed upstream in which they will take the natural origin chinook
  • And tag them
  • Thank you
  • Are there any additional questions? Thank you for the presentation again
  • Now I will ask for a motion and a second to approve this item
  • So moved
  • Second
  • The motion has been made and seconded
  • Clerk Hart, please call the roll
  • Thank you
  • Beginning with Commissioner Calkins
  • Aye
  • Thank you, Commissioner Chad
  • Aye
  • Thank you
  • Commissioner Felleman
  • Aye
  • Thank you, Commissioner Mohamed
  • Aye
  • Thank you
  • Four ayes, zero nays for this item
  • The motion passes
  • Thank you to the presenters again
  • Clerk Hart, please read the next item into the record
  • And then Executive Director Metruck will introduce the item ten e
  • Thank you
  • We did not have ten d assigned on our agenda, so we'll move to ten e
  • And that is authorization for the executive director to approve additional funding in the amount of $22 million for construction of the terminal 91, berth six and eight redevelopment, and to award and execute a contract with the lowest responsible bidder for a total estimated project cost of $98 million
  • Commissioners, terminal 91 is one of the most productive and diversified of our maritime facilities
  • Last August, you approved construction funding for berth six and eight
  • Six and eight redevelopment project, which redevelops the condemned vessel berths and adjoining apron areas while making investments in environmental sustainability
  • Like many complex and large construction projects in the region, the actual construction bids came in higher than the engineer's estimate
  • Today's action will allow the port to accept the lowest responsible bid and proceed with construction on this important project
  • Presenters this afternoon are Stephanie Jones Stevans, managing director of maritime division, Kelly Goodwin, senior manager of maritime operations, and Mark Longridge, capital project manager
  • So I'll turn it over to Stephanie
  • Thank you
  • Thank you, Executive Director Metruck
  • Thank you, commissioners
  • Before I turn it over to our project manager and our senior manager of the facility, I wanted to make a couple of remarks because I wanted you to know how seriously we take the additional request for $22 million
  • It does increase the project total budget to just shy of a million dollars
  • And when these bids came in, I had a couple asks of the team before we could come back to you and ask for that additional funding
  • Wanted to understand, what does this do for the overall financials, both of the facility, but also of the maritime division? I wanted to understand whether there were any options that we could, for instance, cut part of the project out and be closer to our original Puget
  • And then wanted to know, how did this happen and how do we make sure it doesn't happen again
  • So I'm going to speak to these next slide, please
  • I'm going to start off with the financial piece and look at
  • Do I control that? No
  • Okay, thank you
  • Sorry
  • I've done this enough times
  • I should remember
  • So today we're here to ask you for an additional $22 million for verse six and eight, which will bring the total to $98 million
  • Next slide, please
  • That's a significant sum, and as I said, I wanted to really have the team look at what does this do to the overall project
  • Financials division financials, as well as the facility itself
  • So terminal 91 is actually one of our most profitable facilities
  • There's a whole bunch of different businesses there
  • Total revenues before this project, total revenues are over $42 million
  • Majority of that is the cruise business
  • But there's fishing, maritime, industrial, the uplands that are managed by our real estate team
  • The expenses are about $28 million
  • So overall, even after we pay for all of our capital investments through depreciation, this property has a net positive net operating income after depreciation of about seven and a half million dollars
  • If we do this project, the revenues go up, but depreciation also goes up even more than that
  • But even after this project, as well as the 91 uplands, we would still be profitable as a facility of about six and a half million dollars
  • That's significant because this project, the whole facility, operates together
  • So although we see fishing vessels as one use also ships, of state research vessels, we specifically use it when cruise vessels are in
  • The whole facility operates as one
  • So really wanted to understand what this meant to the facility as a whole
  • When I then look at the division finances
  • As you know, the maritime division as a whole, our net operating income does not pay for the infrastructure, the depreciation on the infrastructure we rely on
  • We've had a goal for some time of getting that to a breakeven point
  • Our decision not to build an additional cruise terminal and the pandemic set us back a couple of years, this would likely set us back about two more years, and we would be looking to get to that break even point at 2030
  • So I do feel as a public port, it's our responsibility to keep our facilities in a way that the maritime industry that creates family wage jobs in our community can rely upon
  • We can't have facilities that are falling in the water, that are load restricted, that are not suitable for vessels to tie up for
  • And we can see that even with this, this is a very profitable facility
  • I also want to speak for a second to mark will speak a little bit more to this
  • We did look at is it possible to take part of the project away, and it really does not make sense to do that
  • We would have to rebid the project
  • You can't take away parts of the project without really sacrificing the utility
  • We could take away environmental parts of it, but that's not really consistent with where we're going as a port, as a facility
  • So I do recommend going forward with the project as it stands
  • So finally, to the question of our estimates and the bids and the difference between them, Mark will speak more to this
  • But we know that the way we look at risk, the way we look at escalation, are both some things that we need to update
  • There are significant this is happening when we talk to our expert review panel
  • This is happening around the region
  • We are not alone
  • The initial feedback from our ERP external review panel is that we look at risk, we look at escalation, we look at the way we bid projects
  • Thinking about alternative delivery methods are a way to ameliorate some of the risk we have from escalation
  • We are intending to bring in a third party to look more specifically at the way we're doing this, the way we do our cost estimating and anything else that can really help us be closer to get the actual cost more accurately predicted
  • So I want you to know that we are undertaking that as an independent effort because we do take this very seriously
  • With that, I do recommend approval, but I'm going to turn this over to Kelly Goodwin and Mark Longridge to tell you a little bit more about the project
  • Thank you
  • Thank you Stephanie, and good afternoon commissioners and Executive Director Metruck
  • Excuse my voice please
  • I will share some of the reasons we are recommending you move forward, move this project forward with the additional funding request and then mark will share more detail regarding our bid results and why we are requesting this additional funding
  • As a reminder, this project is located at terminal 91 in the north end of Elliott Bay
  • This work represents the 9th and final berth redevelopment of Terminal 91, removing and replacing the last two load restricted, creosote soaked timber bursts with modern, strong prestressed concrete to meet the vessel demand and needs of today and into the future
  • The port redeveloped and modernized the rest of the berths at terminal 91 in the 1990s and the early 2000s
  • Next slide please
  • As I mentioned before you last August, we are out of space to meet demand when the fleet is alongside
  • A recent example is a Noah ship Oscar Dyson
  • She wanted to come alongside early January this year when we had absolutely no available space and no other locations were suitable to meet her needs
  • Fortunately, she was able and willing to adjust her dates and come in as the fleet was departing
  • We were not as fortunate when the Ruben Lasker Noah ship called in May last year and she made other arrangements outside the port
  • Next slide please
  • This work is not only critical to the port's commitment to good asset management, but also supports the port's effort to be the greenest and most energy efficient port in North America
  • Over 2200 Creoso pilings will be removed from the water column over water coverage will decrease
  • Stormwater improvements are included and as is renewable energy through solar panel arrays and improved shore power delivery
  • This facility and these bursts don't only support fishing, they support our commercial maritime industry
  • An industry, as shown in the recent economic impact study from the Washington Maritime Federation, has total employment in our state equaling 174,300 jobs as of 2022, many of which are concentrated in this region
  • That same study found that Washington maritime work provides an average wage of 112,000 pier year, including benefits, so these are family wage jobs
  • This project also assures the port continues into the future with a diverse and healthy portfolio of assets
  • Many of the vessels that will utilize these berths continued to work throughout the COVID pandemic while other maritime operations shut down
  • Restoring existing load limited and partially condemned mortgage facilities to their full capacity is the first step to meeting these capacity needs
  • Redevelopment of burst six and eight is critical to ensuring the long term viability of the port as the home to the North Pacific fishing fleet and supporting commercial maritime in this region
  • I would now like to hand this over to capital project manager Mark Longridge to review our recent construction bid summary with you
  • Mark thanks Kelly Commissioners I'm Mark Longridge
  • I'm one of the capital project managers here in our waterfront project management group
  • I'd like to take you through our bid process and results
  • Talk a little bit about the factors we considered in coming up with our recommendation to you today and what next steps for the project will be if you approve
  • Next slide please
  • So late last year we concluded a two and a half year effort for design and permitting of this work and advertised the major work contract in early November
  • We had good engagement from the contracting community with over 70 plan holders, including many prime and subcontractors
  • At the request of bidders and due to the complexity of the work, we extended the bid period about three weeks from the original bid date and opened bids on December 20
  • We received three bids from qualified bidders and the low bid was $72,636,235 from Pacific Pile and Marine Group
  • This bid was significantly higher than we had expected in our engineers estimate, and that is the reason we're returning to you for additional funding today
  • Of note in the bids is that the second low bidder was less than $60,000, or within eight one hundredths of 1% from the low bid, an exceptionally close range for a project of this or of any size
  • In reviewing and working to understand the bids more clearly, we also investigated if there were any fatal flaws in our bid package or issues that might be artificially inflating the costs
  • We did not find any and believe that the amount bid is an accurate price for this work in today's market
  • Next slide, please
  • So what happened and how do we know that this is the real price for the work? Several factors make this work more complicated and add to the costs
  • We have a tight construction schedule and a tight work site on an active facility
  • This schedule constraint is particularly acute for the inwater work where permit constraints for the allowable construction window for both sediment and impact pile driving work has been reduced two full months from what we've seen in the region historically
  • Instead of being able to perform that work from August to February of each season, this has been shortened to lessen impacts to September to January
  • But the primary driver for the increase that we found is the historic escalation that we've been experiencing not only in the construction industry in general in the region, but particularly in marine and landslide civil work and electrical work
  • Unfortunately, costs in these sectors have been outstripping the construction market as a whole and our project has large components of all of them
  • Anticipating continued volatility in the market as we did our design, we did hire an outside firm to do a risk analysis for this project, and we completed full risk analyses at both the 60% and 90% design phases, working not only with our designers and estimators about their estimate assumptions, but also pulling in our permitting group, construction management, contracting and operations to look at where the risks were and how to account for them
  • Escalation played a large role in this conversation and the results of that analysis were the basis for our previous construction authorization in August U of $76 million
  • While we put in what we felt was a conservative estimate of contingency and escalation, obviously it proved to not be enough in the current market
  • Informing our recommendation to you today, we looked at several options, including deferring the work or rejecting these bids to reduce scope or pursue grant funding
  • Perhaps in past years, merit grant funding has been reserved for cargo and container yard projects exclusively and not fish cargo projects such as ours this year, it is expected that that will change, which would make our project eligible to apply for this federal grant funding
  • However, this application process would take approximately nine to twelve months to complete and add significant additional requirements to our work, which would in turn add to the current costs
  • If we were successful in our application for grant funding, it's likely that the grant funds awarded would not fully cover not only these additional requirements, but also the further escalation of waiting to re advertise and award the contract for another year
  • And with the dependency on in water work window, it would more likely add two years to the project's completion
  • And this is one of the reasons we are not recommending this course
  • Next slide
  • So what's next? With your approval today, we can award the major works contract within the allowable 90 day window from the bid opening and start on contract submittals and early procurements
  • With our contracting partner, we would see site work starting in early June and the inwater work later in the summer
  • The current construction schedule that you see here uses a second in water window to place the final fender pile components, and we expect to complete the work before the end of 2025
  • Next slide, please
  • Of course, no construction project is without risks, as you know
  • And while these are reduced and we've dialed down some of the probabilities here, now that we have bids in hand and we're a little further down our cone of uncertainty, we still keep a close eye on the remaining risks
  • As such, we're carrying a 10% contingency on the contract work, which is included in our request to you today
  • Next slide
  • So, as Stephanie mentioned, our request to you today is for an additional construction funding on the amount of $22 million for a project total of $98 million
  • With your approval, we look forward to awarding the major works contract, finalizing our permits, starting the work this summer, and completing this last piece of the terminal redevelopment work that started decades ago to fully support the North Pacific fishing fleet and our other customers at terminal 91
  • Next slide
  • And with that, we'd be happy to answer any questions you might have
  • Are there any questions for staff at this time? Commissioner Cho? Yeah
  • Thank you for the presentation
  • One question that I would like to ask, and this is really not an isolated incident that we tend to get these estimates that are really off
  • So I want to learn specifically for this project, what did we not take account for in terms of what our estimated projected costs were? That we had such a delta between what we expected
  • It's a 40% delta between what the lowest bid amount is and the construction estimate
  • Absolutely
  • So one of the first things we did when we opened pits was to go and see if there were any particular areas that carried larger differences that we could try and understand where that was coming from
  • We saw increases across the board, mainly in labor holding iteMS So our material estimates were actually fairly close the basis for our estimate
  • Our designer was the same designer record for husky terminals in Tacoma, a recent project there, similar, a slightly larger size, and they had taken those costs and escalated and been watching other bids
  • But like I said, I think the biggest issue we've seen is that certain sectors of construction really have had white hot escalation, and we were a victim of that in our timing and getting the top to bid
  • So it exceeded our expectations
  • We had, our designer is the engineer of record for an engineer's estimate
  • Our estimating team looked at it and put it through this independent risk analysis, but the market
  • Thanks for that
  • And then my second question is, it sounds like we're going to go with the lowest bidder, but the delta between the two lowest is not that high, less than 1%
  • And so I hope we're not just going with the lowest bidder because they're the lowest bidder, but that we looked at the two to compare whether or not there's a good enough justification
  • In my mind, the two are pretty much on par
  • And so I'm curious, why did we go with the lowest bidder? Is there a reason beyond just the fact that they are the lowest bidder? Bidder
  • So I defer to our contracting specialists here, but Washington state law, the RCWs do require that we only award the lowest responsible bidder in public works bid
  • Have we considered going back to the, are we allowed to go back and renegotiate bids? No
  • Okay, let me, commissioner, just to follow up, so first agree with that we are required to take the lowest bidder
  • That is the requirement of us
  • We do not have an option
  • I will say that the contractor is one that we have worked with and have confidence in
  • In fact, they're doing two other projects for us right now
  • There's that
  • I do want to respond to your first question about the bids being off
  • That's exactly the question we're asking as well
  • We are again bringing in a third party to look more closely beyond what we've looked at and made assessments
  • Is there anything else that we are missing? One of the comments that was made to us by the external experts that we've talked to thus far, not under serious evaluation of this, but kind of initial reactions is that we may need to be looking at alternative delivery methods
  • The design bid build methods exposes you to the escalation they're trying to take into account their risk of in water work as they do their bids
  • So we are, again, trying to look very broadly at the issue, but appreciate your concerns, same ones we had
  • Thank you
  • Thanks, Stephanie
  • Commissioner Calkins, thanks for the presentation
  • I have a couple of different tracks of questions
  • I want to start with a question around our own in house capacity
  • I know that we have had lots of employee time dedicated to supporting the development of T five, and as that project winds down, there's always lots going on
  • But I am curious to know from a staffing standpoint, both for you and also potentially for director Kilroy, who I see is here, do we feel like we have sufficient capacity in the relevant technical areas to be able to pull off big projects like this? Your mic very close to
  • So a lot of the resources we use are port wide resources
  • So, for instance, our engineering and our environmental team
  • So I think we remember we're delivering much bigger projects at the airport
  • T five is the biggest project that has ever been delivered on the maritime side
  • And I will say that was really from years of relatively small project delivery to T five really has absolutely stretched our capacity
  • We have staffed up pretty significantly
  • Our project delivery team, Tin Wynn, is our director of Waterfront project management
  • We've increased our staff on the waterfront project management side
  • Currently we are at 35
  • Can you repeat that? We were at 19 employees in our project delivery group prior to COVID, and we are now at 35
  • So pretty significant increase
  • As we take this on
  • I think that what I'd like to point out from this, numerous external parties looked at these estimates as well
  • It was not just the port of Seattle team that thought it was going to be a lot less
  • It was all the external parties, the risk analysis folks that we hired, which were external consultants as well
  • So that's why we really want to look broadly and deeply
  • And I think your question, commissioner, is a great one
  • And as we look at our 25 budget, or even if we feel we need them before, we should be asking you for those resources so that we can deliver
  • Yeah
  • Each time one of these comes up, where there is a significant difference between engineers estimate and the bids that we get, it's always a question of whether will it, in fact, cost this amount and our engineers estimate was wrong, or are we getting sold a really high price for something that could be brought in cheaper if we did more of the work ourselves, et cetera
  • I like the point that you made, which is, how do we look at these projects? How do we look to derisk these projects as much as possible so that the bids don't have to price in uncertainty? What kinds of site surveys pre work can be done before they go out for bid? That is something that we could deliver to the potential bidders early enough that wouldn't have to factor in additional insurance or additional surveys or lots of contingencies for unknown
  • So I appreciate that you're thinking about those questions and just a comment to say, not that I would spare no expense for this particular project, but I do want to say these are peers that are in heavy demand for us
  • I wish we had the same kind of demand at every waterfront location
  • And so somebody was working with Commissioner Felleman this year on the Waterfront and Industrial Lands Committee, which will be looking at waterfront development
  • I want to make sure that we're leaning into this very positive spot on our waterfront that is generating a ton of revenue for us and is in demand from a variety of sectors, quite honestly
  • And so, yes, we should make these investments
  • Although it's unfortunate the costs are going up
  • I am supportive of the authorization
  • Thank you, Commissioner
  • Commissioner Felleman
  • Well, I'm glad t five is winding down so we can get busy again
  • But obviously, this is also adjacent to all the other work that's going over at t 91
  • In addition to the uplands, we have water lines being replaced and a bunch of other major infrastructure going on
  • So I would assume their adjacency might have some additional fund and scheduling and things like that
  • But capacity building on what commissioner Calkins was talking about, obviously, they're both high priority projects and we're supportive of getting them done
  • One of the things I just thought from previous conversations, the fact that you have in the slide that the fish processors are getting to be bigger vessels, but also that the cruise season is also expanding from basically April 23 to October 23
  • So we have like six months of huge ships
  • So we used to be able to hot bunk it, so to speak, at the 91
  • And so now we sort of need this additional space
  • And so when looking at the economics of it, you point out that cruise is sort of in our maritime budget
  • But I don't think you're directly attributing that to the financials for this particular project
  • We're talking about, what, $30 million for cruise operations and then the revenues of 13 million
  • Does it say pre construction costs? So obviously the operations, there's a lot of money going in and out of cruise
  • And if this indeed, then that's on whatever page three of the PowerPoint, I'm always asking you, what is the net of cruise's economic benefit to the area? And this seems to me like some accounting could be attributed to cruise on this
  • I believe also the waterlines as well are infrastructure that we're doing for cruise
  • And the one thing we saw in that story in the Times was associated with our water demand
  • And while the airport was a major, our primary, we're like the second largest water user in the state
  • Right
  • And obviously we have a whole city there at the airport, but the maritime obviously has the large demand also, and we have this infrastructure necessary to serve the vessels and other things
  • So I'm just also concerned about capacity to do all that thing
  • And also in terms of justifying the cost to look at the full economic implications
  • I'm just wondering really, is cruise part of that calculation? Yeah
  • So thank you, commissioner
  • That's a great question
  • On the waterline project, I will speak, that was approved earlier today on the consent calendar, I will say that project is the actual users of that are both the cruise and fishing industry
  • So the cost of that project is shared by those, this particular project, cruise ships will not use it
  • But as you said, and that's why it's part of the whole ecosystem
  • And when cruise ships are there, then fishing vessels can't be at the cruise spot and they are here
  • So we look at the financials altogether
  • So that's why I shared this slide about the terminal 91 financials
  • And that's how I think about it
  • In terms of just the way our accounting systems work
  • If you look down into the nitty gritty details, we don't account for it that way
  • But when I think about it, and when I'm reporting on it here to you, I think that is part of the justification for this project and why I have included it here
  • So that's a great point, commissioner, just to look at that figure, though, when you have the preconstruction consolidated, preconstruction at 91 for cruise operations
  • So that's revenue
  • Preconstruction revenue, yes
  • Right now the revenue from cruise operations is 30 million plus
  • All right
  • And then, so the cruise operation expense is the 13 million that's operational, that's not capital that's operational
  • And just to be clear, that also includes all of the corporate expenses, allocated expenses, et cetera
  • Right
  • Total
  • The piece of the waterline or the piece of this is not in this, not yet
  • At some point we're going to get there though, right? Yep
  • All right
  • Thank you
  • Thank you
  • I had a couple of questions myself
  • Director Jones Devons, you mentioned that there is a third party that is reviewing the cost estimate process
  • Is that something that is happening now? We have not yet entered into contracts to do that
  • No, we are intending to do that
  • We have not
  • Is that going to come in front of commissioner? What's the process for that? That you imagine? Yeah
  • So the size of the contract would likely be small enough that it doesn't need to come to commissioner
  • But I would imagine that the results of that, especially if there's changes in our processes like we want to come and we need to adopt policies that require a higher risk level or something that I imagine those would come before commission
  • And to be clear, I was not speaking to these cost estimates for this project being reviewed, but our process for doing all cost estimating going forward
  • Yes, that's helpful because you're recognizing there's some level of pattern here that's triggering that
  • Correct
  • So I also understand that there was an executive review panel that recently completed a review of our capital project delivery and that was presented to executive director Metruck
  • Are we going to be briefed on that? As a commissioner, I don't think that we have that schedule
  • That's certainly something that we could do if that was a wish, if it speaks to these particular projects and the significant increases, I would say yes
  • President Mohamed I think that would be rolled into or perhaps coming back and talking about improvements to our whole capital delivery that I spoke about at the retreat
  • That would be one part of it
  • Of know just the parts that Director John Stevens was talking about and that could be part of it because we are using those different, that assessment
  • Plus just our thoughts know, going back to Commissioner Cowan's comments, do you have enough resources? Are we staffed correctly for that? And that's part of something we can definitely brief the commissioners in total about process improvement for capital delivery in our footing
  • And that actually may be a good discussion into our budget, I'm just thinking aloud as we're talking here that may be a good entry into the budget discussions, especially as we talk about capital going forward for the next 25 and beyond that
  • So that would be a good time, I think, to do that and come back to the commission with like, okay, we have this as we know the 5.6 billion and then how are we going to achieve that? And here's kind of the plan
  • Yeah, that would be helpful
  • Obviously not prematurely
  • Whenever you guys are prepared to make that presentation
  • I think that was a shared priority area that we heard during the retreat for all the commissioners
  • My last question is from Mark
  • You had mentioned the federal grant funding, it not being worth us going after because it would add additional costs
  • Can you just break down that thinking, like, how much more are we talking and why would we not go after that? It seems like we would go after every stone that we can turn in this case
  • No, you're absolutely right
  • And this is something I didn't mean to certainly be in any way dismissive of that
  • We did look at that as an option, saying maybe this is something we want to look at to reject these bids, reevaluate the scope, have a look at these grants
  • Talking with our grant folks, we think that if we were successful, we'd see a grant award somewhere in the order of five to $20 million, which is not insignificant
  • However, that's close to what you guys are asking for, especially in the 20
  • That's correct
  • But at the same time, that grant funding would come with significant additional specification requirements, the Buy America, build America requirements for electrical equipment, which can add to lead time and also significantly increase some of the costs and administrative costs for the construction
  • We went back to find out what we thought that might cost, and the estimate was about 15%
  • Additional would be the expectation we'd see an increase in bid prices if we had those additional provisions in there
  • That's bidding today
  • Like I said, this process would also take about a year
  • So we'd be bidding in between one and two years from now, and we'd see that additional escalation as well
  • So in the alternative two, you see here that there is a chance that total cost of the port, we might see that reduce, but we may also see it increase
  • We might not be successful in our grant application
  • We get the higher prices later and we have to incorporate those even if we were successful
  • So our range of estimates there was that we'd see a project total between 90 and $120,000,000
  • And most significantly, it involves the risk of rolling the dice again, so to speak, in the market at a later date
  • And we don't see escalation evading anytime soon
  • That's really helpful to just hear you guys'thinking on that
  • My question to that is, I know that you guys have said breaking down the project would not make sense, but considering that there are some funding option, did you guys think about breaking it down for the sake of going after some of these grants that might apply, maybe not to the entire project, but parts of it that would make more sense for it
  • We talked with the grant folks about saying, has anyone actually applied for these grants post award? Could we take the package that we have? Could we get the best of both worlds? And they weren't aware that anyone had, certainly not successfully, that this would not be a competitive project if you were already under contract
  • To try and add those provisions into the contract would be very difficult, if not impossible, was the read that I got from our contracting folks
  • And to cut the project into pieces, there are so many interrelated pieces
  • So, for example, the replacement buildings that we have are being replaced because we have to improve the ground underneath them
  • We have to improve that ground because of the seismic requirements of the pier
  • So it's very difficult to do one without the other and still meet code
  • We could try and you'd have to split the project in half, and then you'd pay the administrative overhead of two contracts
  • So there are a number of challenges in trying to parse out individual pieces
  • We're going to look for opportunities during the construction to any potential grant funding we might be able to apply for and receive, maybe not merit and other ways to get efficiency working with the contracting partner, but we didn't see a way to break a project into smaller pieces and achieve any efficiency
  • Director Jones
  • Mark, that's really helpful
  • Thank you
  • If we approved this item today, is that something that your team could still revisit? Maybe not that particular grant, but other grants that are possibly out there and the possibility of considering breaking down the project in chunks to go after maybe not that fund, but other funds that could be out there
  • So once we award the bid, we will not be able to break it down
  • We will certainly continue going out and looking for opportunities, but once we award the bid, we have committed that that contractor can deliver the whole thing
  • We could certainly go back and look for grant opportunities, as Mark said, that we apply after the fact, but we would not be able to break it down at that point
  • Thank you
  • That concludes my questions for staff
  • I'll move forward
  • Thank you again for the presentation and for answering those questions
  • Are there any additional questions for staff hearing? No further question
  • Is there a motion and a second to approve this item? So moved
  • Second commissioners, are there any additional discussions? I would just like to point out your point about the solar cells, the cold ironing, the sewage treatment
  • These are sort of like jewelry that kind of hangs on a dock that could lend themselves to potentially external funding opportunities that, especially for these climate commitment act type or infrastructure grants, that are going on with the EPA for ports
  • Just seems to me that there are components like that that may not interfere with these other construction issues
  • Thank you
  • We will look for those opportunities
  • Any further comments, Clerk Hart, please call the roll for the vote
  • Commissioner, say aye or nay when your names are called
  • Thank you
  • Beginning with Commissioner Calkins
  • Aye, thank you, commissioner
  • Chef? Aye, thank you
  • Commissioner Felleman
  • Aye, thank you
  • And Commissioner Mohammed, hesitantly
  • Aye
  • Thank you
  • Four ayes, zero nays for this item
  • All right, moving to item eleven
  • We're moving forward onto presentation and staff reports
  • Clerk Hart, please read the next item into the record and Executive Director Metruck will introduce it
  • Thank you
  • Bear with me one moment
  • This is agenda Item eleven a, the 2024 International Policy Priorities briefing
  • Commissioner, this is the first time we are bringing forward an international policies priorities briefing for your consideration
  • As you know, aviation or maritime industries are global industries
  • And as the port continues to lead in many areas, like our green corridor, it is important that we take our efforts to global forums and interact with our counterparts around the world and engage in discussions on issues that have to be addressed from global efforts as well
  • So with this briefing, we'll cover our international priorities as well as highlight opportunities for engagement
  • We'll seek your adoption of its agenda at the next commission meeting on February 27
  • So our presenters are Melissa Parks, government relations policy analyst
  • And then we also have Stephanie Mine
  • Is she available? I think virtually
  • Environmental program manager, aviation
  • And then I also saw Carmen zog black walking around
  • I don't know if she's there, too, to answer any questions, but turn it over to Melissa
  • Okay, well, thank you, executive director Metruck and commissioner, as he said
  • I'm Melissa Parks, government relations policy analyst, here to present our first draft international policy priorities and slide
  • So we're here today because the port increasing our international engagement
  • And commissioner and executive director Metruck asked for these policy priorities to be brought before the commission
  • So presenting these priorities is an important opportunity to get your feedback, and it lends greater transparency to our work
  • So this briefing also follows the other government relation agendas that you've already adopted for local, state, and federal work
  • So today I'll be providing some context around why are we engaging internationally? How have we engaged? And then go over some of the priorities that we've developed for this year
  • Slide
  • So, driven by the century agenda, the port is working to achieve ambitious goals that maintain Puget Sound as the premier international gateway for commerce and tourism, while ensuring equity, sustainability, and quality of life for our region's residents
  • We pride ourselves on being leaders at the forefront of change in industry practices, including our own
  • And to make large scale change for global industries, we need large scale global action
  • We can utilize the change that we're making at home as an examples for others internationally
  • And this is really our international currency
  • It's why we're invited to speak at some really cool and interesting global forums and meetings
  • So attending these meetings, we also get the opportunity to learn and share with other ports and the industry at a wider level, help build trust, develop new ideas, foster relationships that are so important to collaboration
  • And at the port, we have a very successful history of collaborating with our partners on voluntary measures to make progress ahead of requirements, and we can utilize that experience internationally as well
  • That said, and what this slide is trying to illustrate is that the farther we get from our sort of direct sphere of operations, the less influence we have
  • The solutions agreed to globally will have a significant impact and we want to be part of the dialogue, but also be thoughtful about the time and resources and where we see value in our engagement
  • Next slide, please
  • So while this might be the first iteration of our international policy priorities on paper, it's certainly not our first international engagement
  • Since I've been at the port a little over two years, you all and staff have participated in some major international forums and leadership missions all over the world
  • And when we talk about how we engage in person or through written comments, it's also important to understand that in some cases, when it comes to the two major standard making bodies for our industries, so that's the International Maritime Organization and the International Civil Aviation Organization
  • The port is represented by the US Federal government or industry association
  • So it's important that when we think about engagement in those particular UN bodies, we're really trying to influence the position of our own government or industry association
  • So engagement doesn't always mean leaving town
  • We also host international partners at the port
  • Last year, Seattle was one of three cities to host an Asia Pacific Economic Cooperation ministerial, where the port was front and center for 21 member economies from around the Asia Pacific rim
  • We also have our sister port relationships
  • We're in great companies
  • Some of our sister ports, including Busan, Kobe, Rotterdam and Singapore, are all very successful and at the forefront of innovation
  • Finally, our associations, industry groups, non governmental organization coalitions, they're an important collective voice internationally as well
  • And then there's always written comments which are much less fun than traveling, but still important for communicating details
  • So when these priorities are finalized, they can be another engagement tool
  • Next slide
  • Okay, so here's a look at the categories of priorities that reflect work that port staff are already engaging in internationally, as well as some emerging issues that we want to track more closely
  • And in addition to these categories, staff also developed a set of broad principles around the importance of collaboration and transparency, equity, environmental justice and sustainable development that will underpin and also will embed in our advocacy
  • So I'm not going to go into detail on all of these categories, but wanted to give some general comments
  • So for one thing, we tried to tie these policy priorities to actual policies, but those don't always exist
  • So as an example, under marine health, ocean acidification threatens our marine ecosystem, but there's no international policy that's specific to acidification
  • But we are the only port part of the International alliance to combat ocean acidification, and so we want to include it, highlight it as a priority, encourage awareness, and to share our efforts to reduce carbon emissions overall, which leads to acidification, as well as supporting the nature based solutions that we're experimenting with, like kelp and yield grass enhancement
  • So we'll also be tracking opportunities to engage around alternative energy standards
  • Other countries are ahead of us in terms of developing and deploying the technology, so it's an important opportunity for lessons learned that could help shape our advocacy around sustainable supply chains and development here at home and then switching gears from environment human trafficking is another important global issue
  • Staff at the port are working hard to implement our commitment to combat human trafficking at our facilities and encouraging tenants and industry partners to join the effort
  • So we'll plan to track opportunities to share the work we're doing here more broadly
  • And then the port is engaging more around building sustainable tourism regionally, and the Global Sustainable Tourism Council is developing best practices or implementing best practices
  • So we want to track that and engage or look for opportunities to share our work and also our Washington tourism partners
  • Next slide, please
  • Okay, so I wanted to share some more detail around priorities on climate emissions because these tools are being actively developed for maritime and implemented for aviation
  • And similar to the broad principles I mentioned earlier, staff also developed a group of priorities that support and encourage action around climate change specifically, and that decisions should be based on science, data and solutions developed with those who are most impacted
  • We also want to see climate information shared widely with the public
  • So looking specifically at aviation, it's ahead of maritime in terms of greed, policies and goals to reduce emissions from the sector
  • So now they're in implementation mode
  • We'll continue to engage and support the international Civil Aviation Organization's target of net zero by 2050, primarily through work to accelerate the uptake of sustainable aviation fuel, as well as participating and tracking new environment related standards and recommended practices there also an example of an emerging issue
  • Both aviation and maritime are considering new alternative fuels, and we want to track those developments as standards
  • We want to make sure the standards uphold the principles that I mentioned and also consider potential surety aspects from an airport, seaport and community perspective
  • So for maritime, last year the International Maritime Organization updated its goal to phase out emissions from commercial ships
  • And unlike aviation, where implementation is underway, maritime is really in the thick of developing their policy tools, including a fuel standard, an economic measure, and ensuring a just and equitable transition
  • So we will be following those very closely
  • And then outside of official policy channels, the maritime industry is moving quickly to test new fuels and technologies through green shipping corridors
  • These are meant to be proving grounds for zero emission shipping, and no two are the same
  • So as the port continues our efforts with our Pacific Northwest to Alaska Green corridor, we'll continue to exchange ideas, lessons learned, find ways to coordinate and collaborate on what comes out of that work with the dozen or so corridors that are underway
  • And finally, shore power electrification is a decarbonization solution that we know well
  • There's room here for better standardization on connections, and there's also increased global interest in shore power, where we can really share our experiences with other ports
  • Next slide
  • Okay, so that wraps up the briefing on our first draft, international policy priorities
  • With your feedback, we'll look to finalize these and request adoption at the next meeting
  • Before we close, thought I'd include a list of some upcoming, really just spring engagement opportunities
  • And also just a reminder that Stephanie mine is online and she is our sort of aviation environment expert
  • So with that, I look forward to your questions
  • Thank you for the presentation
  • I'll open it up for commission questions
  • Commission questions
  • Commissioner Felleman
  • Well, thanks so much
  • I appreciate having this new category of consideration
  • I guess two thoughts
  • One is at the IMO, we've been really focused on the MEPC, and I keep on wanting to talk about the SDC ship design committee work and how they jive together and went to that one conference
  • So I just want to just be sure that we are still very much on top of the SDC deliberations for the efforts to reduce noise as well as to reduce emissions
  • Yes, we are
  • So that ship design subcommittee handles, basically, they're looking at the relationship between energy efficiency through ship design and reduction in underwater noise
  • And I think that they've made some good progress there
  • They're going to recommend at the upcoming Maritime Environment Protection committee that we enter a, and we being IMO member states, enter a two year experience building phase with their new underwater noise guidelines, which I think the port could really highlight some of the work that we're doing here, along with that and tracking the energy efficiency really closely
  • Excellent
  • I just see the scheduling for the MEPC, but not the FDC in the calendar
  • And there's also the GFDC annual meetings coming up
  • All that's good, I guess the only other thing was in terms of you mentioned how with the kelp, there isn't this global forum on ocean acidification, although state of Washington was very much a leader in that effort initially
  • But the idea that we could use it to elevate awareness, and I appreciate that sentiment
  • And I was looking at the opportunity with the green corridor to also use that as an opportunity to elevate the ocean noise issue
  • That's talking about quiet green corridors while we deal with them traditionally as separate entities
  • Slow steaming is a way to both achieve noise as well as air emission reduction
  • So I've raised this informally, but the port has its strategy, and I'm just never clear how to provide input on thoughts like that in order to elevate both of our interests organizationally, but to do it concurrently and when we have sustainable aviation fuel legislation moving right now, I'm always looking for where the commission input on these feedback on these sort of things come in
  • I think right now, I don't know whether the bill died today or not, but there was created this threshold of 20 million
  • I don't know if it was gallons or barrels of staff had to be produced before we could say it should be utilized in local airports and stuff
  • As far as I'm concerned, we should just be incentivizing the use of staff, whether or not we're producing it
  • We want to eventually produce it
  • But I think that this was a hurdle that was put in, again, legislation, budget, legal
  • Are the three places really where commissioner direction is most easily articulated
  • And so I just am trying to find an appropriate venue for, at least in this forum, to try to elevate both the noise and the emissions concurrently
  • And I just throw that out as one of the options
  • Thank you, Commissioner Cho
  • Yeah, thanks so much for putting this together, Melissa
  • It's very exciting to see that we're elevating what we do on a state and local level to the international level
  • And I've obviously had the chance to attend many international events over the last year or two
  • And, you know, I think for me, it's been extremely valuable because you learn a lot from these events
  • But I think that part of the risk of us engaging so much internationally is that there's something that happens, like every month
  • I mean, if you put together a calendar right now of all the international supply chain related events, there's probably one like every two weeks
  • And so I think in order for us to avoid kind of being spread too thin and or feeling like really burning Karen out, I think it helps sometimes to go to these events with clear objectives and goals so that we're not just going for the sake of going
  • It could even be that we have certain speaking engagements where we're presenting what the port of Seattle is doing, but also going to talk to a certain potential partner on certain initiatives and whatnot
  • I think we run the risk of just going to these things for the sake of going to these mean
  • Look, the MEPC last year was very informative for me, but if we were to be quite honest, the port of Seattle really had no role in that
  • We were just there to watch, which we could have done online
  • I'm just being really candid
  • Right
  • And so I think as we go forward and think about these priorities, which are great priorities, we really need to look at what opportunities there are internationally and how those opportunities internationally promote our priorities and further that agenda as opposed to, oh, yeah, they're talking about hydrogen, we should just go
  • Right
  • And so I hope we're a little help
  • We can become more intentional
  • I'm not just saying that for our staff
  • I'm also saying that for us as commissioners as well, that there needs to be a clear purpose and objective in what we're pursuing here on an international level
  • It sounds like I just triggered Sandy, actually the diamond status
  • Director Kilroyd, do you have some comments? Yeah, if I may
  • Sandy Kilroyd, senior director for environment and sustainability
  • Just a comment
  • I absolutely concur with Commissioner Cho's comment about being selective, being strategic on what conferences we go to and having clear objectives
  • I do think maybe I'm commenting specifically on the IMO one, one of the reasons that our presence at conferences and things like IMO, even though we're not a member state and working directly, is to help elevate partnership around these issues
  • So most of these organizations are looking for local examples, looking for how this works on the ground, and we are one that can provide that
  • But in additionally, the work that we have to do in developing alternative fuels and other decarbonization efforts takes major partnership
  • And so I think the other value that each of you I think have experienced in your travels is how we build those partnerships over time
  • And so I just wanted to add that to kind of why this international agenda and some of our presence at those events is important
  • But I absolutely agree
  • It's being selective, strategic and figuring out which ones we really get the best bang for the buck out of
  • Thank you Director Kilroyd, Executive Director Metruck
  • Thank you President Mohamed
  • And thank you Commissioner Pellam and Commissioner Cho
  • I think if I could just comment my vision of how this, this agenda, and I really want to give a shout out to Melissa Parks and the staffing over the last period and then the whole team that's backed that up, including Karen Zach Black, director Kilroy's and her team as well, and then both in the division's mean there's a lot of effort goes into this because I think the vision for I have is this is the touchstone of these things, positions
  • So when we draft, and it's not just the travel, because we've used this a lot on input, Moso talked about it, which is input to the deliberations through the US government
  • When we provide that input, they look for it from us
  • They value ports are becoming more of the implementer of some of these main
  • When you look at, let me just give a discussion
  • If you look at just aircraft or aviation or especially on maritime, they talk about the ships and the flag states in the ships, but the ports are where all that happens
  • And so it's necessary for us to provide that feedback of how those things fit together
  • And that can be impacting both the position of the federal government, of our national government engagement in those international foruMS But also the international forums include the World Ports Conference and other things that we have positions when we talk about and do presentations of what we're doing here
  • We're also having the side conversations where we're learning, but we're also pushing forward
  • This is best practices and learning best practices, whether it be the International association of Ports and Harbors, World Ports Conference, our port authority roundtable participation, the Global Maritime forum, where these issues are being discussed and they're literally pushing them forward
  • So I think it's important for us to have our positions pushed forward to them
  • And this provides the touchstone
  • And really I think it's going to be valuable for us as we develop like say comments on a specific policy that may be appearing before one of these foruMS And even if we're not presenting, it would be considered by our government to be considered as part of that
  • And I know that in just our participation in these things, they're looking for us as Director Kirwaer was talking about our leadership in that as well
  • So I think this is a first thing iteration as we go forward
  • But I think Commissioner Felleman, going back to your comment, is that saying, hopefully we capture kind of where their position is
  • So then we just go back, reference this as we write a response to something and through our processes, submit comments on certain things in certain foruMS So thank you
  • Thank you, Executive Director Metruck
  • That was helpful and insightful information that both you and Director Kilroyd provided, and I think those partnerships are important
  • In addition, I will look at Commissioner Cho's international travel request a little closer from now on, since he decided to bring that up
  • Go ahead, Commissioner Bowman
  • I just want to point out that some of the most important part of those meetings are over dinner
  • And so those relationships are very important
  • And we should not underestimate the importance of the relationships that Executive Metruck brings to these international conversations
  • So these are not the first time we're meeting with these people
  • And those doors are very much open
  • When you know the top lawyer at the IMO, when you know those folks, when you walk in, it's really much more constructive
  • So thank you, Steve, for your leadership in this realm, and we're all the better for it
  • Thank you, Commissioner Felleman, for those additional comments
  • Hearing no further questions or discussions, I'll move us along to the next item
  • Moving on to item eleven b, internal audit report
  • Clerk Hart, please read the item into the record and Executive Director Metruck will introduce it
  • I think you just did
  • Commissioner Mohamed, thank you for that
  • I was formally on audit committee
  • Yes, I know
  • It's great
  • And then I will note for the record, however, that Commissioner Cowens has left at 02:32 p.m.
  • Today
  • And we still do have our quorum
  • Executive Director Metruck
  • Thank you
  • Thank you, Clerk Hart
  • Commissioner, internal audit provides an important public service in ensuring the efficiency, compliance, and transparency of port operations
  • We're all deeply grateful to Glenn Fernandez and aye
  • team, as well as the commission audit committee that sets its agenda for aye
  • work
  • Internal audit has completed an impressive 16 audits in 2023
  • I want to note that today's presentation is mainly a recap of last year's work and findings, and many of the recommendations from internal audit are already being implemented
  • So that I'll turn over to Glenn Fernandez
  • Glenn, thank you, Steve
  • Again, Glenn Fernandez, the director for internal audit for the Port of Seattle
  • And here to talk about the 2023 internal audit plan
  • So, Michelle, next slide, please
  • I first want to give thanks to our audit committee, which was last year, Commissioner Mohamed leading it, Commissioner Cho and Sarah Holmstrom, who's actually on the line today on team somewhere
  • Sarah is our volunteer member from Amazon
  • She's a senior finance leader there
  • Previously she was the CFO for the Swinomish tribe, the Tulalip tribe, and also worked for the state auditor's office
  • So she's got a lot of experience and she brings that and she volunteers her time
  • So thanks to her and thanks to our commission, because without that, we wouldn't be able to do what we did
  • Next slide, please
  • Michelle
  • Our internal audit
  • So we conduct independent, objective, risk based audits and we look at a variety of items at the port, our operations, our technology and our vendors
  • We help the port achieve its mission and we strive to make sure that our audits contribute to the financial stewardship of the port, that we're accountable, we're transparent to the public, that there's adequate information for good governance at the port, and we strive to make processes better
  • Of course, we derive our authority from you, the commission and me
  • As the director for internal audit, I report functionally to you and administratively to Steve, the next slide
  • And I just want to note that that is an industry best practice that years ago there was a state audit and experts came in, looked at the port and they suggested that as an industry standard
  • And we're following am I am a dual report
  • So the IIA or the Institute of Internal Auditors has something called the three lines of defense model
  • And this is an example
  • It's world recognized, but it talks about the controls, who's responsible for controls and just managing the organization
  • And the first and second line are management
  • So it's the first line of the people that actually do the job and do the work
  • The second line are internal controls, internal supervisors, other compliance functions
  • And where internal audit is the last line of defense and catching something before it goes outside and hits the media, hits the state auditors or something that's negative
  • So we're like the last goalkeepers out there
  • We all report to the governing body, which is a commission
  • And one of the things we try to do is work together, don't work in silos
  • We work to make sure that we collaborate in everything we do and we're all working and pulling in the same direction
  • So the model is pretty self explanatory, but it's something that we embrace at the port
  • And a lot of organizations worldwide embrace this model
  • Next slide, please
  • Michelle, some quick highlights
  • In 2023, we completed 16 audits
  • We do, as I mentioned, performance audits
  • We've got five of those capital projects
  • Just because of the amount of money we spend at the port
  • We put a lot of time into capital information technology to protect the port from cybersecurity risks and last but not least, limited contract compliance
  • A lot of the vendors, concessionaires that work for us at the airport, at the seaport, we periodically look at their revenues, also make sure that we're getting paid the right amount and that they're paying the correct amount, not overpaying or underpaying
  • So it's a win win for both
  • Our audits identified four high risks issues, 16 medium risk issues and several low risk issues, also, which management is actively addressing, as Steve mentioned
  • And we follow up on these, we've brought them to the audit committee and they're constantly being addressed, the ones that do get the visibility
  • Finally, as I mentioned, we do a lot of construction work
  • And because we do so much construction work, a lot of our stuff is also these GCCM construction projects, especially at the airport
  • And GCCM is essentially time and materials or your bills
  • Instead of a lump sum, it's paid whatever you incur in costs and time and materials you get billed for
  • So these projects work out well for the port
  • We do a lot of audits over here, primarily because the RCW 39 ten requires us to audit real time, audit all GCCM projects
  • So you'll see a lot of work over there
  • And finally, one of the things we do when we do have audit reports, we post them publicly in our website to be transparent with the public
  • So any member of the public can go on, with the exception of security sensitive it audit reports, all our work is posted in our external website
  • Next slide, please
  • So, a quick snapshot of our audits that we completed in 2023
  • On the left, you've got limited contract compliance audits
  • In the middle, you've got the performance or operational audits
  • And we lump our capital or construction audits there
  • And you can see we've got quite a few that we've done
  • The bottom three, as I mentioned, are required by RCW to be done, and we do real time auditing on those
  • We have an outside firm, as you know, that does the work in partnership with us and then presents it to the audit committee at your end
  • And finally, the information technology audits in the far right
  • Aubree
  • Next slide, please
  • So, information technology audits are important primarily because of all the vital infrastructure that we have at the port everything that runs the port, everything that runs pier 69, the operations of corporate and the port as a whole
  • We focus on something called the center for Internet Security
  • They're think tank that's globally recognized that has these 18 key controls
  • And they say if you do your audits around these and make sure that your controls are secure in these areas, your defensible space just increases or the gaps in your perimeter are minimized to the extent that it's really hard for a cybercriminal to get in
  • So we put our efforts there, and over the last five years, we've done about eleven of the 18 cis key control audits, and we've brought that forth in non public session to the audit committee and talked about how we can address the weaknesses and the issues there
  • Aubree next slide, please
  • Our information technology audits
  • This slide essentially talks about key objectives of our audits
  • We look at the effectiveness of controls, we look at cybersecurity risks, we protect the port's critical information assets, and we support the port's organizational goals and objectives
  • So these themes will continue on going into 2024
  • They're what we've done historically and will continue on
  • Aubree next slide, please
  • On the capital front, commissioners, just because of the amount we're spending, the close to billion dollars, our audits covered about approximately $182,000,000 of spend
  • So some of the key findings that we've seen in our construction audits in 2023, it's strengthening contract language, for one
  • I know, Commissioner Mohammed, you've pushed for us reviewing more, getting more into reviewing contract language earlier on in the process
  • And that's primarily because from our audits, we've seen that contract language needs to be strengthened in certain areas, primarily to minimize the potential for misinterpretation
  • Pay applications and change orders, those are essentially billings
  • When contractor says this is what we need to be paid, that pay applications and change orders are when there are changes, but essentially when they submit those
  • We found that in certain instances, supporting documentation needs to be enhanced
  • At least in 2023, we saw that labor rates, there were opportunities to improve documentation and guidelines for labor rates
  • This is when contractors bill us
  • And we also saw situations where there were overpayments, and we just need to make sure we collect those
  • So those are some of the things we highlighted in construction side in 2023
  • Next slide, please
  • Aubree
  • So I'm going to quickly go over three highlighted performance audits from 2023, parking garage, payroll controls, and fisherman's terminal
  • It's a sample of what we did, but it's quick
  • Representative sample
  • Aubree, next slide, please
  • So, commissioner, as you know, we've got one of the largest parking structures in the United States with our airport parking garage, and it generates close to 100 million in revenue a year
  • So it's quite large
  • Our audit focused on parking garage access, cash handling, just because of the amount of cash that comes through there, and then any applicable laws, rules, and regulations that we needed to comply with
  • Primarily, there's been the issue of after COVID
  • A lot of people parking there, leaving their cars there
  • The airline employees were there during COVID and they've all been moved out
  • Now
  • Our audit focused on, are there spaces that we can clean up? Are there opportunities to minimize abuse of parking privileges that we grant to vendors and consultants and contractors? And some highlights from the audit
  • Over the 18 months, we found 603 instances of people abusing their complimentary parking privileges, contractors primarily, and parking there for more than the 24 hours that they're allotted to park there
  • We found that employees also that had left the port
  • There were 99 cards that were still active, and 16 of which continued to be used after employees had left the port, and then concessionaires that had ended their leases
  • There was one instance of somebody still having their card and continuing to use it
  • So all of this is being addressed and being cleaned up, but the audits highlight these issues as we do that
  • Next slide, please
  • Aubree payroll is one of the largest costs in the port, at $317,000,000, representing approximately 67% of our total operating expenses
  • So we looked at payroll controls and we looked at what can we do to be better and more efficient
  • We've got many different payroll systems and a very complex process because of the labor agreements, because of the different departments that sometimes work in silos
  • And whilst one of our recommendations was to simplify and standardize that wherever possible, we also found opportunities to become more efficient and be better and fine tune our systeMS For instance, the Maximo system was generating work orders that required staff to go out and do work that didn't exist because a retired asset was still in the system as active and generating these tickets
  • And that had been going on for quite a while
  • So fixing our system so unnecessary work is minimized is one of the highlights of this audit
  • Next slide, please
  • Aubree
  • And last but not least, I think sometimes we have staff that come out and ask us to do audits
  • For instance, the maritime group, the director of maritime operations in this audit, asked us to come out and do an audit and help them with their processes
  • So we take our expertise and we work within the business and help them become better
  • And in this case, it was more about the billing and collection procedures at Fisherman's terminal
  • So we spent some time there helping them out and providing guidance as to what we could do better and fine tune our processes
  • Next slide, please
  • Aubree, our final slide commissioner, talks about our 2024 strategy
  • We will continue to stay independent and objective
  • We're trying to enhance our processes by viewing our work through an equity lens and incorporating EDI into our work, into select audits and into our prograMS So working closely on that with the change team and with director of book ASARS organization
  • Finally, we have an opportunity to streamline our concession audit process and become more efficient
  • There
  • Cap of delivery, as Steve mentioned, is big on aye
  • priority list and it's big on ours as well
  • On the cybersecurity side, we'll continue to focus on the remaining center for Internet security audits
  • And also we have some new TSA audit requirements that have come out for 2024 that we have to comply with
  • So we'll be doing those as well
  • So with that, that concludes my presentation
  • I want to give thanks to everyone, and I know audit committee member Sarah Holmstrom is on the line if she has any comments as well
  • Great
  • Thank you, director
  • I can pause to take any comments from Sarah
  • I don't see her on camera, so I'm assuming
  • Hi, Sarah
  • Good to see you again
  • Hello
  • Yes
  • I just want to say thanks for allowing me to be part of the committee
  • I really appreciate the opportunity and I really appreciate all the work Glenn and team do
  • I know we ask a lot of hard questions and push into a lot of the details, and they're always very responsive and follow up with really good information
  • I really appreciate that the port, the team does
  • Thank you, Sarah
  • You aye
  • mute, but I see you
  • Your lips are still
  • Oh, yeah, that's it
  • Thank you
  • Great
  • Thank you, Sarah
  • Thank you for your leadership on the audit committee
  • I will open it up for questions or comments from my colleagues
  • Commissioner shelter? Yeah, no, look, I just want to thank you, Glenn, and your team, again for all the work that you do
  • Not always the most appreciated department in the organization, but you certainly keep us accountable as that is your main function
  • And it's been such a pleasure to work with you over the last couple of years
  • Being on the audit committee, I think this is some of the most important work that we do as an organization, as stewards of taxpayer dollars, as people who want to be accountable to the money that we're spending
  • I think we're in some crazy times with costs going up with inflation, with all these other factors that we don't really control, so to speak
  • But we do need to keep tabs on
  • And so I really appreciate all the great work and the partnership that your department provides to all the other departments in the organization
  • Thank you, commissioner
  • Commissioner Felleman
  • Thank you, Glenn
  • I appreciate having these annual reports so I can express my appreciation for all the work that you do, even though I've spared you from being on the audit committee for a while
  • But really, it is one of those jobs that we're greatly appreciative and I think might not be the most rewarding at times
  • But it's important grind that we all appreciate you doing
  • I'd like to see if you could look into the lights at the airport parking garage, because I think they lie
  • The green parking spots are not always open, but I don't know if we can figure out what the problem there is
  • It's a little, a bit of an issue these days, but actually I see with the focus on DEI, I think the port has taken on this incredible hurdle of trying to look at equity spend
  • I salute this effort
  • I can't believe how difficult it must be to get your head around it
  • And I'm just wondering whether or not there might be some independent ayes looking at it or whether you've been already on it
  • But it seems to be, there's going to be a work in progress to try to assemble all those data
  • It just seems something that perhaps over time, as they get their legs under them, perhaps it would be worthy of an evaluation if there's thoughts to be brought to the conversation
  • But since I'm not on the committee, you can just take it for what it's worth
  • No, it's a twofold thing
  • As you mentioned, it's continuous effort
  • As there's equity spend, we partner and we do look at that and we make sure it's being used efficiently and internal bureaucracy doesn't slow it down
  • As we identified in the commission this year, there were some opportunities that were designed for larger businesses that were being applied to smaller businesses as well
  • And we've worked to streamline and address some of those
  • And our CPO organization is doing that as well
  • But Commissioner Felleman, another thing we were doing we're going to be looking at is integrating into our audit programs opportunities to better help and promote equity, diversity and inclusion in any process, not just in our spend, but in anything in select processes or select audits
  • It's a new push coming across the industry where audit functions can contribute to equity, diversity and inclusion as well
  • Thank you
  • And just one clarification that the clerk told me is that you are a dual report, but only through the committee
  • So it is a kind of a slight distinction that the dual is to the two commissioners, I think, rather than the body at large, but I think it's kind of academic
  • But for what it's worth, Clerk Clark, nothing further to say
  • Yeah, the bylaws don't call out this particular position specifically as a dual report, but it does recognize that underneath the committee structure is my understanding of that
  • Thanks for that clarification
  • I really enjoyed serving on the audit committee with Commissioner Cho, and I think your team plays such an important function for the port of Seattle when it comes to transparency, us being good stewards of public dollars
  • So I want to say thank you to you and your team for the work that you do under the 2024 audit strategy
  • I didn't see improvement on contract language
  • I know we talked about that a lot in 2023 in regards to megaprojects and even smaller projects where we saw contract related issues with grassroots organizations that partner with the port, like through the South King county fund
  • And so I'm wondering, is that going to be something that will be incorporated later, just improvement on contract language to decrease potential misinterpretations? And maybe in your dual report to that committee, is that something you guys will be looking at more closely, and is there going to be a possibility of some sort of recommendation coming out of the committee that comes to the full? Commissioner? Well, the way I approach it, Commissioner Mohamed, is I did spend some time with deputy director Karen Goon, and we talked about how we'd integrate that earlier in the process into all contracts, new contracts that are going out
  • So without slowing down deployment of a contract, we'll get in there earlier with these contracts, and we'll use our resources to review the contract template, the language and everything in there
  • So that process has already been started and embedded
  • We don't have it formalized, but we've integrated it as part of our GCCM audits that we do
  • And for any new mega projects that are coming out, as far as taking it on a smaller scale, we'll have to assess resources and see if we can do it for smaller ones as well
  • But clearly, for any large project, we've already put that into place per your recommendation and your guidance
  • Great
  • Is there a memo for that? Is there something that we might have missed as a commission? No, there's nothing formal on it, but I'll be happy to put that together
  • And what we suggested doing is deputy director goon and myself will meet with you and talk about what we're doing and brief you on it before we send out a memo
  • Great
  • Thank you
  • Well, that concludes my questions
  • Thank you again for the presentation
  • I will move us along in the agenda
  • Thank you, commissioner
  • No problem
  • So moving us to item number eleven C
  • Clerk Hart, please read the item into the record and then Executive Director Metruck will introduce it
  • Or maybe she's the staff Pritchard, we'll go ahead and read that into the record
  • This is agenda item eleven C, the 2023 committee review and 2024 committee work plans briefing commissioners committees allow for deeper dives into areas of interest for the commissioners
  • Provide additional information
  • This briefing will report on the 2023 activities and highlight 2024 work plans
  • And the briefers will just turn over quickly to the chief of staff, Aaron Pritchard, and then to Vee Wynn for the commission's strategic advisor to discuss that work
  • So I'll turn over to Aaron
  • First, I want to thank V for pulling this together, Aaron Pritchard, commission chief of staff, for pulling this all together from everybody and bringing this forward today
  • And just wanted to know that as she brings forward these committee work plans, the work plans create a snapshot of what, at this time staff has said they believe are some of the most important items to bring for the committees and some of the input from commissioners, what they believe that they would like to see heard this year
  • But these work plans do evolve over the course of the year as new items come up and as commissioners identify priorities that they really want to focus on as well
  • So I'll go ahead and turn it over to v and she can proceed with the presentation
  • Thanks, V
  • All right, well, thank you
  • Good afternoon, commissioners
  • For the record, my name is V N Wynn, commission Office Strategic advisor
  • The item I have before you today is an overview of commission committees
  • I will briefly cover notable committee work in 2023 and what's ahead for 2024
  • Next slide, please
  • In addition to the charter committees, we had two ad hoc committees that were stood up last year
  • One focused on small business and another focused on airport workforce conditions
  • The Small Business ad hoc committee, per the order that created it, sunset at the end of 2023
  • The topics of that committee have been absorbed by the Equity and Workforce Development committee
  • The airport workforce conditions ad hoc will continue its work into 2024
  • The first meeting is scheduled next month on March 19
  • I'll make a quick note that there is a forthcoming ad hoc committee that will be added to the roster of commission committees and we'll come back to that later in this presentation
  • Next slide please
  • So first up we have arts
  • I'm going to try to not read the slides to you too much just because I know it's been a marathon sit so in 2023, some notables that the committee accomplished was developing a strategy to align the port wide art program and that there are new art installments at multiple port facilities at the Airport World Trade center in pier 66 and 69
  • Next slide please
  • Looking to 2024, one of the main projects of the art board that they're looking to accomplish are more art installations with the port's capital improvement projects
  • These include multiple projects throughout the airport and fisherman's terminal
  • Next slide please
  • Along the art board's continued work on art installations, the board will continue to work on three other areas which include maintaining and increasing our art programs and public engagements
  • Continue to acquire, conserve and maintain artwork across all port facilities and finally, the art board will continue to work on other projects such as the website update, continued temporary art programs and continue to evaluate the port wide art strategy
  • Next please
  • So really quickly, about the audit committee, I know you just got a very detailed briefing from director Fernandez
  • Sorry, this WSDOT in the script 2023 had a total of seven meetings and oversaw 16 audit reports
  • Committee also oversaw an annual audit financial audit and received and responded to the state auditor's annual accountability report
  • So next slide please
  • Plans for 2024 include a review of external and internal audits, with two items for future consideration for approval, an internal audit budget and an internal audit annual plan committee is expected to have a similar number of public meetings this year
  • Next slide please
  • All right, the aviation committee 2023 focused on substantive work that reflect the fact that travel demand continues to grow the sea and staff across divisions are working hard and as fast as they can to continue delivering a world class experience
  • Big ticket items included ground transportation access plan updates, an accessibility order, the FAA noise policy update, airport dining and retail match plan review, and a briefing on lessons learned through our taxi pilot program
  • Next slide please
  • For 2024, the aviation committee will be providing oversight for several projects in the port's $5,000,000,000 five year aviation capital improvement plan
  • Commissioners will also examine the airport's ground transportation plan, a program and the launch of a process to update the part 115 noise remedy program should the commission pass a sound installation, repair and replacement order
  • The committee will also oversee the first stages of that project
  • Finally, the committee will look ahead to 2026 in the port's work to prepare SEA for FIFA coming to Seattle
  • Next slide please
  • All right, equity, Workforce and Development 2023 was a big year for this committee with the port's equity policy directive crossing the finish line
  • It was adopted by commissioners in April of 2023 after over a year of work led by the commission office and director Geyser and her team
  • Other work in 2023 included the initial development of the port's language access order, developing an anti human trafficking work plan and briefings on some of the port's key workforce development programs, career connected learning, the port's apprenticeship and priority hire prograMS This committee also tracked the progress of the WMBE barrier study
  • Next slide please for 2024, a robust workplace has been developed and includes report outs required by commission orders on language axis, the Ports equity work, the South King County Community Impact Fund, youth maritime career launch and our equity and budgeting work
  • We will also have several items from the Economic Development division as we are continuing the work of the 2023 Small Business Ad hoc committee here
  • So we will have briefings on the Community Business Connector program and the international Market study
  • Additionally, we will have updates for goals and work in diversity and contracting, and priority hire through committee
  • Next slide please so, for ethics and governance, the commission clerk in the legal department will be undertaking review of the commission's ethics code in 2024
  • A review of the final recommended code may be presented to the ethics board members in 2024 for their feedback
  • The board will ultimately take commission's final adopted revised code and begin to create new rules of procedure for the governance of its operations
  • This work cascades to the governance committee as that will be the body reviewing the work of staff and making their final recommendations on ethics codes
  • Amendments to the full commission
  • Next slide please
  • The governance committee may also see work in 2024 related to the delegation of responsibility and authority policy directive, should the commissioner consider revising the threshold levels contained therein
  • Next slide please
  • All right, this brings us to the sustainability, Environment and Climate Committee, aka the CC committee agenda
  • Topics in the 2024 work plan for the Sustainability, Environment and Climate Committee are items that are required by the committee charter, items that will be going before the Commission for Action, long term projects and items that are commissioner priority issues
  • This slide shows the extensive list of items covered in 2023 and this is foundational for the work in 2024 and a great reflection of the work conducted by staff in 2023
  • So next slide please
  • 2024 will advance three critical goals in electrification and decarbonization and climate resiliency and emissions reduction and sustainability and environmental initiatives
  • This list is huge
  • Rather than reading it all to you, you will get the updates and we will work closely to make sure that briefings happen and in close coordination with staff in the commission office and in departments
  • Next slide please
  • Next up is the waterfront and Industrial Lands Committee
  • 2023 members oversaw and guided the port's role in the first update to industrial land zoning at the City of Seattle in over a decade
  • This is crucial to preserving the working waterfront for the port and our partners
  • Other items included briefings and work on transportation through industrial lands, including work on bike lanes
  • Committee also received updates on real estate from the Port of Seattle and Northwest Seaport alliance study next slide, please
  • I note that I believe the will committee members are Felleman and Calkins
  • Oh, I see
  • That was 24
  • So for 2024, items on the docket for briefing and potential action include updates in Wasca as it relates to industrial uses, forthcoming land use and transit initiatives anticipated at the city of Seattle, such as a comprehensive plan, update and move
  • Seattle Levy directors McFadden, Joan Sevens will provide an update on their joint study, future lines of business for the Port of Seattle
  • And we should have updates on cruise issues, including economic impacts, and finally, updates on the real estate portfolio and how we are working towards a fully activated waterfront
  • Next slide
  • All right, so finally we have our ad hoc committees
  • The airport Workforce Conditions ad hoc committee was created in quarter three of 2023 to bring together issues that previously straddled more than one committee
  • This committee covers childcare needs, potentially exploring accessible and affordable health care, a third party code of conduct for tenants to ensure work site civil rights standards as well as compliance with the port's human trafficking efforts are discussed, and then hygiene products at port managed facilities
  • Additionally, there's work underway to stand up another ad hoc committee focused on the port's work on civic assets such as the Aquarium and Elliot Bay connector, and tourism
  • Under the leadership of Commissioner Felleman will also be items for this committee
  • This ad hoc committee is due to meet four times in 2024
  • Next slide
  • And that is the end of this presentation
  • So thank you for your time, commissioners, and thank you to my colleagues for their work to get this presentation ready for you today
  • Happy to take questions and invite my colleagues to provide answers and if not, back to you
  • Commission President Mohamed thank you v for the presentation
  • I will open it up to commissioner's question
  • Commissioner, question no, Commissioner Felleman, I'd just like to appreciate trying to pull this together and you really speak too slowly
  • But I do
  • Thank you
  • Being the last presentation to actually get through this as succinctly as you did, it was very good
  • The need for us committee members to actually get together and hone in on our priorities, I think is something I know I haven't had a chance to do fully
  • So, as you will see, the SCAC committee is quite a long list, and I think Commissioner Cho and I will probably hone it in
  • But I do want to make sure that some guiding principles know we all are busy people and to just be briefed by staff for a second time
  • If it's coming before the board at large and there's no budget ask associated with it, there's no policy direction being requested, we can get one briefing
  • I would hope that these committees are going to be making use of commissioners in a way that is not just briefings, otherwise, it's just another meeting
  • And some of these things, a lot of them are carryovers
  • It's like these are not easy tasks
  • So projects that we had before, we carry on, make progress on, and I appreciate you showing the 23 going into 24
  • That's that continuity
  • And some of these things have been initiatives of the commissioners that would be obviously of priority to continue
  • But I think really, for the committee to be of service to the commission at large, which is, I think a lot of what we're trying to do here is to divide up the workload, is that we would dive into things so that when it is a budget ask, we can rely on our colleagues to have done that extra work, to be able to say, I don't have to be the expert on this
  • I know somebody else took a deep dive
  • That's the goal
  • So to me, that those things that have a budget request that staff are working through, those should be really what? And ideally that it's not a fully baked thing that we're just asking to sign a check
  • But that's really where I think our value is
  • We can have two, two ones if it's just the subject of interest
  • Right
  • So I just hope that we look at our lists of things with that in mind, that this is really of service to the commission and we can get all the briefings we want if that's all we want
  • So thank you
  • Thank you, commissioner
  • I believe that my colleagues and I have all really rooted in the principle that committees should be a discussion point for staff and Commissioner Cho get together so that you have the information you need, they get the guidance that they need, and that if there are decision points that need to be elevated, that this is absolutely the right space for that
  • Thank you
  • Any additional questions or comments? No
  • I think given the breadth of work that this entails, we might need some more commissioner or less travel
  • Wow
  • Shots fired
  • I do have a couple of questions would be, first of all, thank you for putting this presentation together
  • Clearly, it took a lot of hard work and time
  • So gratitude to you
  • I wanted to know who is on the governance committee for 2024, current and past president
  • I'm stuck with Joe
  • That will be fun
  • Okay
  • I'm looking forward to that
  • And then my other question was regarding the equity and workforce development committee
  • I know that we folded the small business committee into that one, but I feel like it's kind of a partnership between the office of OEDI and the Office of Economic Development with McFadden
  • Can't we break that up so we can clearly see what is happening when, so it's not all mixed together
  • I don't want to lose sight of the small business work that Dave McFadden is leading on, as well as some of the studies that are happening
  • The barrier study, for instance
  • And so is there a way to do, you know, one thing if you don't
  • We didn't want the small business committee to sunset
  • We wanted it to, not for us to have additional meetings
  • If there was a way to have it be an umbrella that falls under it
  • But it's like a very focused, those items are very clear
  • And we can see when some of those small business discussions are happening and when those reports are being reviewed
  • I think in particular, because it WSDOT and commissioner Cho on that small business committee, and neither of you are in that committee
  • Now, you have items of interest within that committee that I saw
  • One jumped out
  • For instance, you've been along with the international market study the whole way, like, making sure that you are both kept up to speed and briefed at the same time is something that's, I think, very much within a regular order of what we do
  • Does that sort of answer your question and then how the work plan breaks out? We can make it a little bit more clear, I think is what you were asking as well
  • Commissioner Cho and I, if we're both serving on also the governance committee, that might be a perfect, because I think the issue with scheduling
  • Right
  • So if there is a way where we have a standing time on the calendar that is for governance committee, but it alternates
  • Right
  • So we're having the small business discussion and then we're having the governance discussion as opposed to adding a different date on our calendar
  • I think that was the biggest issue
  • Is that practice? Yeah
  • Commissioners, these are your committees within your work plans, so we can make it work for however best works for your schedule and for the information you want to get
  • So, yes, I think that's very possible
  • That would be helpful if you guys can come back and let us know, we can make that happen
  • And I will make sure that the work plan for the equity workforce development committee gets to both of you before the end of the day
  • And for the record, I really enjoy serving with Commissioner Cho's committees
  • Don't want anybody to take my joke seriously
  • Well, I don't have any additional questions, but thank you again for the work that you guys put in to bring this before us
  • That concludes our business meeting agenda for the day
  • Are there any closing comments at this time or motions related to committee referrals from commissioners? I will just make a quick comment
  • We were at the airport today, and we met with the FAA administration's director, Michael Whitaker, and that was a very fruitful discussion
  • Executive director Metruck and I joined, and also the director, Lance Little, was also there and many of the aviation staff, and we were able to show aye
  • all of the incredible projects that are happening at the airport
  • We thank them a lot for the millions of dollars they've poured into our airport
  • And we talked to them also about future projects that are coming online
  • And also it was also an opportunity for us to elevate some of the community concerns around the airport and some of the legislations that we have supported through the start committee, whether that is the repair and replacement legislation, as well as we told aye
  • that it would be really helpful if we had a deadline for the environmental study that is happening, survey that is happening
  • That is something that is at a limbo for community members, and they ask about it
  • And so that was another opportunity for us to elevate some of the things that we hear as commissioners
  • And so I just wanted to share that with my colleagues
  • That concludes my comments, Commissioner Felleman, to follow up on that
  • I saw in our notes that think the Friday memo that the FAA reauthorization, we did not have, the repair and replace package got pulled out by Senator cruise
  • And so elevating the importance of our discussion that much more
  • And I don't know if you want to speak to your initiative for tonight
  • Yeah, that's right
  • And my understanding is Senator Patty Murray is working really hard to help put that back in
  • And so I'm hopeful on that end
  • And we are having a listening session for our potential repair and replace sound installation commission order that is on the schedule for the February 27 meeting
  • Just one last comment from me as well
  • Commissioner choke yeah, I just wanted to wish everyone a happy new Lunar new year
  • It is the year of the dragon
  • The dragon represents vitality as well as good fortune
  • So wishing all that for you all and all who are born on the year of the dragon
  • That's it
  • Thank you
  • Commissioner Cho
  • Executive Director, Metruck do you have closing comments? President Mohamed no, I don't
  • That's a great covered
  • All the things do
  • Well, I should say one thing is just again, reflecting back, I thought that was a great state of the port event last week and appreciate all the work that went into it and especially commissioners and your thoughts about where we were and where we're going
  • So thank you
  • All right
  • Hearing no further comments and having no further business
  • If there's no objection, we are adjourned at 334
  • Thank you
  • Thank you.

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