Item Number:  _8a_Motion_ 
Meeting Date:  June 23, 2020 

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5                                                    MOTION 2020-17: 
6                                     A MOTION OF THE PORT OF SEATTLE COMMISSION 
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8                             supporting the Executive Directors recommendation to
9                             adjust the Commission-approved 2020 Port budget and
10                          to  authorize  the  execution  of  $3,000,000  in  new
11                          community benefit programs to spur regional economic
12                          recovery. 
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14                                                   PROPOSED 
15                                                 JUNE 23, 2020 
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17                                                 INTRODUCTION 
18    The COVID-19 global pandemic is an unprecedented public health emergency that impacts the
19    lives of everyone in the region and state. The Port of Seattle's top priorities during this difficult
20    time  are  keeping  employees,  tenants,  concessionaires,  contractors,  workers,  customers,
21    travelers and residents safe, while simultaneously strengthening our critical aviation and
22    maritime infrastructure to advance trade and commerce and to support jobs, small and diverse
23    businesses, and environmental sustainability. 
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25    Therefore, the Commission believes strongly that it is in the best interest of the Port and its 
26    financial sustainability to make adjustments to the 2020 Port budget, preserving resources to
27    help the organization remain viable for the long-term. However, it is also essential that the Port
28    continue to invest in key economic recovery programs, and so the Commission supports new
29    dollars for key efforts to support the region's residents.The Commission and the Executive
30    Director will continue to evaluate and adjust this approach as new information becomes
31    available. 
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33    The Executive Director has the authority to reduce the budget of the Port of Seattle, the
34    Commission is passing this motion to support the exercise of that authority. 
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36                                              TEXT OF THE MOTION 
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38    The Port of Seattle Commission hereby supports the Executive Director recommendations to
39    reduce the Port of Seattle 2020 budget by approximately $70 million dollars, from both
40    operating and capital budgets, to preserve funds for the uncertain future economic times
41    ahead. 
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Motion 2020-17 Changes to the 2020 Port budget   Page 1 of 2

43    The Commission authorizes the Executive Director to execute $3,000,000 (three-million) in
44    contracts support investment in workforce development and tourism. The authorizations shall
45    include: 
46         $1.5 million to support implementation of the May 26, 2020, Opportunity Motion 
47            workforce development programs. 
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49         $1.5 million to support tourism promotion that is vital to the Port's economic
50            sustainability and the region's economic vitality. 
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52                                     STATEMENT IN SUPPORT OF THE MOTION 
53    The COVID-19 global pandemic has been an unprecedented public health emergency that
54    continues to impact the lives of every local resident, and is causing incalculable economic and
55    human costs. The Port of Seattle has been deeply affected in almost every way, especially since
56    the economic downturn has been particularly severe on travel, trade and tourism. We have
57    heard painful stories from our tenants and partners, but the Port's own budget has seen the
58    loss of hundreds of millions of dollars in expected revenues. We are grateful for the federal
59    support that Sea-Tac Airport has received to keep our operations funded in the near future. 
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61    Tourism is an important driver of King County and Washington state's economic vitality.Travel
62    and tourism support 5.1 percent of all jobs in Washington. State and local taxes, generated by
63    direct visitor spending, tallied nearly $2.4 billion in 2019. The Coronavirus epidemic has acutely
64    damaged employment in Washington State's travel sector. Through the end of April, job losses
65    within the leisure and hospitality sector represented 42 percent of all job losses in the state.
66    Since March 1, visitor spending in Washington has declined by $3.8 billion compared with last
67    year's figures. Supporting the revitalization of tourism throughout Washington State will
68    support economic renewal and will positively impact the Port of Seattle's gateways and
69    financial future. 
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71    Commissioners face a difficult task over the coming months and years, trying to be thoughtful
72    stewards of the Port's assets while also trying to help drive regional recovery efforts. It is a
73    challenge to balance those two priorities, and the Commission is grateful to Executive Director
74    Metruck and his leadership team who have already taken actions to achieve both:
75    implementing short-term cost saving measures while moving forward on our major capital
76    construction projects and offering economic relief to tenants across the Port. The Commission
77    also acknowledges that the reason the Port has been able to weather the storm so well to this
78    point is years of conservative budgeting and strategic financial management that built up
79    significant reserves. 
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81    In a time of huge shortfalls, money spent now is money that the Port will not have later. No one
82    knows how long or how deep the current economic downturn will be, and so it is important to
83    be prudent at the same time as entertaining bold ideas for helping our region rebound. Much of
84    the Port's capacity to make a major impact will be through the 2021 budget, which will be
85    discussed in greater detail at future meetings. 

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