7c. Motion 2020-06 - Recovery

Item Number:  _____7c___ 
Meeting Date:  April 1, 2020

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2 
3 
4                                                    MOTION 2020-06: 
5                                     A MOTION OF THE PORT OF SEATTLE COMMISSION 
6 
7                             to provide guidance for Port leadership in prioritizing
8                             Port   investments   to   assist   local,   regional,   and
9                             statewide  economic  recovery  from  the   COVID-19 
10                          pandemic. 
11 
12                                                   PROPOSED 
13                                                 APRIL 1, 2020 
14 
15                                                 INTRODUCTION 
16    The COVID-19 global pandemic is an unprecedented public health emergency that impacts the
17    lives of every local resident and is causing incalculable economic and human costs. The Port of
18    Seattle's number one priority is keeping employees, tenants, concessionaires, contractors,
19    customers, travelers and residents safe. 
20 
21    The Commission extends its thanks to the public health officials, first responders, and elected
22    leaders who are helping our region navigate this crisis, and to the Port employees, tenants and
23    associated businesses and front-line workers who are focused on keeping the Port operational
24    during this challenging time. The functional continuity and operations of the Port are vital to
25    preventing greater disruption in the current emergency conditions Ensuring the protection of
26    public health and safety while maintaining operations is essential. The Port an over 100-year-
27    old organization, is resilient, and every day is a demonstration of its commitment to the
28    residents of King County, the businesses and workers who rely on it, and the global travel and
29    trade supply chains that depend on it. 
30 
31    Once this global crisis ends, the Port of Seattle is uniquely positioned to be one of the leading
32    public agencies to help drive the recovery efforts. The Port of Seattle's mission is to promote
33    economic opportunities and quality of life in the region by advancing trade, travel, commerce,
34    and job creation in an equitable, accountable, and environmentally responsible manner. We are
35    committed to sustaining and creating living-wage jobs, preserving the maritime sector and
36    industrial lands that serve our seaport and airport facilities, supporting small and disadvantaged
37    businesses, workforce development, tourism and economic development. 
38 
39    The Port commits to values of equity, justice and inclusion in the COVID-19 crisis response,
40    from immediate response to longer-term recovery. In developing recovery plans, the Port will
41    ensure that principles of equity, justice, inclusion, transparency, and accountability are
42    embraced. The Port will engage communities who are most impacted to understand their 
43    needs. 
44 
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45    In response to the extraordinary circumstances posed by the COVID-19 crisis, the Port's relief
46    and recovery effort will focus on  restoring, sustaining and maximizing our aviation and
47    maritime operations. These operations will play a critical role in the economic recovery of the
48    Puget  Sound  region  and  the  state  of  Washington.  The  financial  sustainability  of  Port,
49    responsible fiscal stewardship and public accountability should inform these efforts. Planning
50    for the recovery efforts, both short-term and long-term, needs to start now and we must
51    ensure these efforts are equitable, inclusive and environmentally sustainable. 
52 
53                                              TEXT OF THE MOTION 
54 
55    The Port of Seattle Commission hereby adopts the following principles to support and guide the
56    Executive Director's evaluation and prioritization of recovery actions to restore, sustain and
57    maximize our aviation and maritime operations in response to the COVID-19 pandemic and
58    ensure swift regional economic recovery. The Port shall consider its fiscal, legal, and equity
59    responsibilities in all decisions made when applying these principles. 
60 
61    Port Employees and Partners 
62    To mitigate impacts of this pandemic on the Port's workforce and its partners, the Executive
63    Director shall consider the following principles when making decisions: 
64 
65     Port Employee health, safety and wellbeing: The Port shall continue to protect the health,
66        safety and well-being of our employees and will maximize teleworking policies and leave
67        policies, as appropriate based on public health guidance. 
68 
69     Keep Port employees working: The Executive Director shall consider steps to keep our
70        workforce employed such as deferring hiring of new and replacement positions, flexible
71        leave without pay options, and reduced hours over reduction in the workforce. In addition,
72        the Executive Director shall determine whether new skill-building and educational resources
73        for employees are necessary to transition employees to new career pathways. The
74        Executive Director shall take into consideration the Port's represented employees and their
75        unique needs. 
76 
77     Youth employment: The Executive Director shall offer youth internships to provide to the
78        extent possible a short-term boost to the economy, support the most vulnerable and
79        underserved communities, and continue its strategic investment in the Port's workforce of
80        the future. Where possible, the Port should consider youth whose parents have lost
81        employment as a result of the COVID-19 pandemic. 
82 
83     Federal, state and regional recovery coordination: The Port shall collaborate with the
84        Federal government, Washington State, King County, City of Seattle and other regional
85        institutions to develop and implement a coordinated plan for long-term economic recovery. 
86        The Executive Director will work to identify federal and state programs that benefit the
87        Port's business partners, and support their efforts to apply for and/or otherwise take
88        advantage of these resources. 
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89 
90     Tenants and concessionaires: The Port has a strong interest in supporting the economic
91        vitality of its business partners so that they may produce revenue for the Port, provide
92        service to Port customers, and generate jobs. This will be a key element of the recovery. 
93 
94        The Executive Director may consider proposing adjusted agreement terms in a manner that 
95        serves the financial interests of both the Port and its tenants and concessionaires. The
96        Executive Director shall, in light of Port finances and to the extent permitted by applicable
97        law, consider prioritizing: 
98 
99        o   Businesses that are directly impacted by the COVID-19 pandemic and the restrictions
100            that have been implemented to address it; 
101        o   Businesses that can commit to being available to provide services and generate
102            revenue; 
103        o   Businesses who are not otherwise eligible for significant state or federal economic
104            relief; 
105        o   Small and diverse businesses; 
106        o   Independent contractors, hourly-wage workers, "gig workers", and artists and craftsman 
107            who do not otherwise have access to basic economic safety nets; and 
108        o   Non-profit organizations and not-for-profit tenants. 
109 
110    Capital Programs 
111    The Executive Director shall evaluate project assumptions for all capital projects approved prior
112    to the COVID-19 pandemic. These projects sh all be evaluated if assumptions on demand for
113    Port facilities, industry trends, and consumer habits have changed. The Executive Director shall 
114    determine which projects shall be postponed, accelerated or  phased,  and  consider the
115    following principles when making decisions about these short-term and long-term capital
116    investments and major capital maintenance projects: 
117 
118     Maximize economic impact: Prioritize projects that generate significant economic activity  
119        not  only  construction-related  employment  and  spend,  but  also  projects  that,  once
120        completed, will facilitate key drivers of regional economic activity such as trade, fishing, 
121        tourism and travel. This shall include considerations for projects that facilitate a rapid
122        recovery and accelerate employment opportunities, and reduce our capital construction
123        costs in the face of reduced market demand. 
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125     Diversity in Contracting: Prioritize capital programs that have high utilization rates for
126        woman and minority owned businesses consistent with the Diversity in Contracting Policy
127        Directive. 
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129     Small Business Enterprises: Prioritize projects that provide opportunities for small business. 
130 
131     Environmental Sustainability Goals: Prioritize actions that support attainment of Century
132        Agenda goals for greenhouse gas and air emission reductions, habitat stewardship and
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133        enhancing  the  environmental  features  of  capital  projects,  particularly  projects  or
134        operational decisions that utilize the Sustainable Evaluation Framework. 
135 
136    Economic Development and Community Investment Programs 
137    The Executive Director shall consider the following principles when making decisions about 
138    economic development and community investment programs: 
139 
140     Existing Grant and Community Benefit Programs: Prioritize community investments using 
141        existing  programs  such as  the Economic Development Partnership Program,  Tourism
142        Marketing Support Program, Duwamish Valley Community Equity Program, the South King
143        County Fund and others. 
144 
145     Partnerships to Maximize Funding Impact: Identify partnerships and coordinate efforts to
146        create multiplier effects of Port funding. For example, the Executive Director can leverage
147        Washington Department of Commerce economic recovery investments that create near-
148        term economic activity; expand on regional transportation investments that support the
149        region's trade and travel needs; leverage city and statewide tourism promotional programs; 
150        and address long-term infrastructure needs. 
151 
152    Reporting Timelines 
153    The Executive Director shall deliver to the Commission by April 28 , 2020, a draft early action
154    recovery plan with recommendations and options outlining how the principles will be applied
155    to Port investments. By December 31, 2020, the Executive Director will update the Commission
156    on recovery implementation efforts and continue to provide updates on a quarterly basis
157    throughout 2021. The Executive Director shall compile and report on lessons learned to
158    incorporate innovative and new ways of doing business and report in the first quarter of 2021. 
159 
160                                    STATEMENT IN SUPPORT OF THE MOTION 
161    The Port of Seattle is a major regional economic driver. It owns and operates vital
162    transportation infrastructure necessary to facilitate recovery across the state. Sea-Tac
163    International Airport (SEA) is the largest transportation hub in the five-state region with over 51
164    million passengers annually. With a regional economic impact of more than $22.5 billion in
165    business revenue, SEA generates more than 151,400 jobs (87,300 direct jobs), representing
166    over $3.6 billion in direct earnings and more than $442 million in state and local taxes. 
167 
168    The Port and The Northwest Seaport Alliance (NWSA) operate the 4th largest gateway in the
169    country serving farmers, manufacturers, retailers and service providers throughout Washington
170    and is a critical part of the supply chain. Our Maritime facilities, including cargo, cruise and
171    fishing operations, support over 20,000 employees including our terminal operators, longshore
172    workers, steamship agents and freight forwarders, trucking companies and railroads moving
173    cargo to and from terminals. NWSA Marine Cargo generates almost $6 billion dollars in
174    business output across Washington state. In addition, our cruise operation supports 5,500 jobs
175    and a full cruise season generates nearly $900 million in economic activity. 
176 
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177    Because of those roles, the Port of Seattle Commission is focused on the Port's responsibility to
178    plan strategically and proactively for how to help our region during this crisis and guide its
179    recovery once it is over. As a public agency that provides essential services to facilitate our
180    economy, the Port is uniquely positioned to be a key driver of economic recovery. The Port's
181    roles in the transportation of people and goods, economic development, tourism promotion,
182    workforce  development,  trade  and  travel  facilitation,  environmental  remediation,  youth
183    employment and equitable inclusion are all essential tools that are needed to help workers,
184    businesses, local residents and the overall economy. It is also in the Port and regions financial
185    interest to keep tenants operating in both the maritime and aviation sector. 
186 
187    Just as important as the Port's role to help the economy revive will be its focus on rebuilding
188    the economy equitably, in an environmentally sustainable manner, across King County and the
189    region. 
190 
191    Prioritization of investments is critical in the upcoming months and those decisions must be
192    made in alignment with the Port's mission, values and goals; thismotion is the beginning of
193    that process, with an acknowledgement that additional guidance will be required on a regular
194    basis and reviewed on a case-by-case basis. 
195 
196    As the Port changes the way we do business and innovates to meet this challenge, the Port will
197    look at ways to incorporate these new approaches into doing business for the long-term benefit
198    of our employees and the region. 










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