The Regular meeting scheduled for 2020-04-14 at Remote

Transcript

The Regular meeting scheduled for 2020-04-14 at Remote

GOOD AFTERNOON
THIS IS COMMISSION PRESIDENT PETER STEINBRUECK CONVENING THE REGULAR MEETING OF THE SEATTLE PORT COMMISSION OF APRIL 14TH, 2020
THE TIME is 12:05
WE'RE MEETING REMOTELY TODAY VIA SKYPE TO COMPLY WITH THE GOVERNOR'S STAY-AT-HOME ORDER AND IN ACCORDANCE WITH PROCLAMATION 2028
PRESENT WITH ME TODAY ARE COMMISSIONERS BOWMAN, CALKINS CHO AND FELLEMAN
I WILL ASK THAT WE DO A ROLL CALL OF ALL COMMISSIONERS TO ENSURE EVERYONE IS ON THE LINE
WE WILL BEGIN WITH COMMISSIONER BOWMAN
COMMISSIONER BOWMAN, ARE YOU PRESENT? I BELIEVE I GAVE AN UNMUTE PROMPT
COMMISSIONER BOWMAN? OKAY, SHE'S HERE, BUT WE'RE NOT GETTING AUDIO
YEAH, AND SHE'S UNMUTED AND I CAN'T EVEN MUTE HER AGAIN
SO I'M NOT SURE WHAT IS GOING ON
SHE'S HERE
I JUST HEARD HER VOICE DOWN THE HALL SAYING HI HERE
SO SHE IS HERE AND SHE HAS REGISTERED
OKAY
ALRIGHT COMMISSIONER CALKINS? HERE
GREAT
COMMISSIONER CHO? HERE, PRESENT
AND COMMISSIONER FELLEMAN? HAVE WE GOT COMMISSIONER BOWMAN'S AUDIO WORKING NOW? WELL, IT DOESN'T SOUND LIKE IT
TODAY'S MEETING IS ORGANIZED THE SAME AS OUR LAST FEW DUE TO PUBLIC THE PUBLIC HEALTH EMERGENCY
WE'VE MADE SPECIAL ARRANGEMENTS TO PROVIDE FOR REMOTE PARTICIPATION FOR ALL OF OUR STAFF AND COMMISSIONERS
LATER
WE WILL BE TAKING PUBLIC COMMENT FROM PEOPLE ARE PARTICIPATING BY SKYPE AND WHO HAVE SIGNED UP TO SPEAK
ALSO, PLEASE NOTE THAT ALL VOTES TODAY WILL BE TAKEN BY ROLL CALL METHODS SINCE ALL COMMISSIONERS ARE PARTICIPATING REMOTELY
THAT MEANS FOR EACH VOTE, I WILL CALL EACH COMMISSIONERS NAME, COMMISSIONERS ON THE SKYPE CALL WILL HAVE TO UNMUTE THEMSELVES AND THEN ANSWER YES OR NO
BECAUSE COMMISSIONERS ONLINE ARE NOT FULLY IN CONTROL OF THEIR SOUND, WE WILL TAKE ALL VOTES TODAY IN THIS MANNER INCLUDING OUR CONSENT AGENDA
TO BE EQUITABLE, WE WILL ASK ALL TO COMMISSIONERS TO SPEAK IN TERM AND WAIT TO BE RECOGNIZED BEFORE SPEAKING AS MUCH AS POSSIBLE
WE BEGIN TODAY'S MEETING BY ACKNOWLEDGING THE INDIGENOUS PEOPLES OF THE DUWAMISH AND COASTAL SALISH WHO HAVE STEWARDED THESE BEAUTIFUL LANDS AND WATERS SINCE TIME IMMEMORIAL WE MUST COMMIT TO DOING THE SAME FOR THE PLANET AND 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 MAYBE REBROADCAST BY KING COUNTY TELEVISION, ALTHOUGH MAY LOOK A LITTLE DIFFERENT
PLEASE STAND AND JOIN US FOR THE PLEDGE OF ALLEGIANCE
I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS ONE NATION UNDER GOD INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL
[INAUDIBLE] IS THE APPROVAL OF THE AGENDA
I WILL TURN IT OVER TO EXECUTIVE DIRECTOR TO GIVE A LITTLE INSIGHT ON THE PROCESS TO DETERMINE THE AGENDA IN FRONT OF US
DIRECTOR METRUCK
COMMISSIONERS, IN RESPONSE TO THE GOVERNOR'S STAY HOME
STAY HEALTHY ORDER AND PROCLAMATION 2028 REGARDING THE OPEN PUBLIC MEETINGS ACT, I'VE DIRECTED STAFF TO CAREFULLY ANALYZE AND REVIEW EACH OF THE ITEMS PROPOSED FOR TODAY'S AGENDA TO DETERMINE WHETHER OR NOT THEY ARE NECESSARY AND ROUTINE
WE BELIEVE THAT THE ITEMS BEFORE YOU TODAY RELATE TO MATTERS OF ROUTINE PORT BUSINESS AND ARE URGENT
AND THE URGENT WILL BE DETRIMENTALLY AFFECTED BY SIGNIFICANT DELAY AND ARE NECESSARY TO PORT OPERATIONS
ITEMS THAT DO NOT MEET THE NECESSARY ROUTINE CRITERIA HAVE BEEN DEFERRED TO LATER MEETINGS
I URGE APPROVAL OF TODAY'S AGENDA
OKAY
THANK YOU DIRECTOR METRUCK
COMMISSIONERS
WE ARE NOW AT THE ORDER OF APPROVAL OF THE AGENDA
CLERK, PLEASE UNMUTE THE COMMISSIONERS
COMMISSIONERS ON THE LINE, PLEASE UNMUTE YOUR SELVES
I'M GOING TO ASK EACH COMMISSIONER IN TURN THEY HAVE ANY MOTIONS TO REARRANGE THE ORDERS OF THE DAY AND IF YOU DO I WILL ASK FOR A SECOND IF IT'S NEEDED
PLEASE RESPOND WHEN I CALL ON YOU
IF YOU HAVE NO CHANGES TO SAY NONE
ALRIGHT COMMISSIONER BOWMAN DO WE HAVE YOU? NO CHANGES
COMMISSIONER CALKINS? NO CHANGES
COMMISSIONER CHO? NO CHANGES
AND COMMISSIONER FELLEMAN? I'D LIKE TO PULL ITEM 6E FOR A BRIEF NOTIFICATION TO THE PUBLIC
OKAY, IS THAT A FORM OF A MOTION? YES, I FORGOT
OKAY
IS THERE A SECOND? SECOND
IT'S BEEN MOVED AND SECONDED TO REMOVE ITEM 6E FROM THE CONSENT AGENDA TO PLACE UNDER THE REGULAR AGENDA
CLERK
PLEASE CALL THE ROLL
I DON'T BELIEVE WE NEED TO
THAT JUST GETS MOVED, DOESN'T IT? IT IS AND THEN THERE'S THE MOTION FOR AN AMENDED AGENDA
CORRECT, AMY? THAT'S CORRECT
SO WE WILL APPROVE THE AGENDA AS AMENDED BY ROLL CALL
OKAY
SO COMMISSIONER BOWMAN? AYE
COMMISSIONER CALKINS? AYE
COMMISSIONER CHO? AYE
COMMISSIONER FELLEMAN
AYE
COMMISSIONER STEINBREUCK? AYE
THE AGENDA IS APPROVED AS REVISED
COMMISSIONERS, GOOD AFTERNOON
I THINK THE GOOD NEWS TO REPORT IS THAT WE HAVE HAD A SPELL OF WONDERFUL WHETHER EVEN IF WE DIDN'T HAVE ANYTHING TO DO WITH THAT
[LAUGHTER] YES
COMMISSIONERS, EVEN THOUGH WE ARE STILL UNDER ORDERS TO STAY AT HOME, THE PAST FEW DAYS ARE GIVING US ALL THE HOPE OF BETTER DAYS TO COME
ID LIKE TO GIVE YOU A SHORT UPDATE ON THE STATE OF THE COVID-19 PANDEMIC IN WASHINGTON, KING COUNTY, AND THE PORT
THERE ARE POSITIVE SIGNS ACROSS THE STATE ABOUT THE PANDEMIC
SOCIAL DISTANCING GOING HOME WHEN SICK WASHING HANDS, CLEANING, AND DISINFECTING ARE ALL HELPING US FLATTEN THE CURVE BUT WE ALL KNOW IT IS FAR TOO EARLY TO RELAX THE STEPS WE HAVE TAKEN AS A COMMUNITY TO SLOW THE SPREAD OF THE DISEASE
IF WE RETURN TO OUR NORMAL ACTIVITIES TOO SOON, WE RISK A REBOUND IN INFECTIONS
ACROSS THE STATE, THERE ARE 10,538 CASES RECORDED WITH 516 DEATHS TO DATE
IN KING COUNTY 4549 CASES HAVE BEEN REPORTED WITH 296 DEATHS
THE PORT'S HEALTH AND SAFETY TEAM ARE CURRENTLY MONITORING A HUNDRED AND FIVE STAFF MEMBERS WHO ARE EITHER SYMPTOMATIC OR TESTED POSITIVE FOR THE VIRUS
IT IS WORTH HIGHLIGHTING THAT THAT NUMBER HAS NOT CHANGED SINCE FRIDAY
THIS MAY BE GOOD NEWS
BUT OF COURSE, IT'S ALWAYS TOO EARLY TO START COUNTING GOOD NEWS, MOST OF THOSE WHO CONTINUE TO BE MONITORED AT THE PORT HAVE BEEN ABLE TO RETURN TO WORK EITHER ON-SITE OR FROM HOME
WE ARE ALSO TRACKING TENANT OR CONTRACTOR PERSONNEL WHO HAVE TESTED POSITIVE FOR THE VIRUS AT THE PORT
LIKE THE REST OF THE ECONOMY, ACTIVITY ACROSS THE PORT HAS SLOWED SIGNIFICANTLY AS THE CRUISE SEASON IS DELAYED AND AIR TRAVEL IS MUCH REDUCED
WE SAW JUST 2,500 PASSENGERS GO THROUGH OUR CHECKPOINTS ON SUNDAY WITH WEEKDAY TOTALS AROUND 3,000
THIS COMPARES TO PEAKS BETWEEN 50,000 AND 60,000 NORMALLY ONE YEAR AGO
AIRPORT DINING AND RETAIL SUFFERED SIGNIFICANTLY WITH 60 UNITS CLOSED AND 29 IN OPERATION
MORE THAN 1000 RESTAURANT AND RETAIL WORKERS HAVE BEEN LAID OFF OR FURLOUGHED
I CONTINUE TO BE PROUD AND IMPRESSED BY THE HARD WORK AND COMMITMENT ALL OF OUR STAFF HAVE DONE TO KEEP DELIVERING SERVICES TO THE COMMUNITY EVERY DAY IN TOUGH CIRCUMSTANCES
WHERE MANY SEE PROBLEMS, MANY OF OUR EMPLOYEES SEE OPPORTUNITIES
FOR EXAMPLE, WHEN THE RECOMMENDATION CAME DOWN TO WEAR CLOTH FACE COVERINGS IN SOME SETTINGS
WHILE WE PUT OUR ORDERS IN FOR THOSE WHICH ARE NOW BEING DELAYED EVEN THOUGH THEY'VE BEEN ON ORDER NOW FOR A FEW WEEKS
OUR OWN PORT WORKERS ARE STEPPING IN AND SUPPORTING EACH OTHER BY MAKING THE COVERINGS AND PROVIDING THEM TO THEIR COLLEAGUES
WE'RE FOLLOWING UP ON THE COMMISSION'S EARLIER DIRECTION TO GRANT DEFERRALS OF RENT AND OTHER CHARGES TO TENANTS WHO LEASE SPACE AT THE AIRPORT, MARITIME, AND ECONOMIC DEVELOPMENT PROPERTIES
THE COMMISSION ALSO APPROVED DEFERRALS FOR MOORAGE TENANTS
LETTERS INFORMING BUSINESSES OF THE DEFERRALS ARE GOING OUT THIS WEEK
THIS WAS WELCOME NEWS FOR THE TENANTS AND WE PROMISE TO REVIEW THEIR S ITUATION AS THINGS CONTINUE INTO THE FUTURE
AS I MENTIONED, THE ALASKA HOME PORT CRUISE SEASON HAS BEEN PUT ON HOLD SINCE LAST MONTH DUE TO HEALTH CONCERNS
LAST WEEK, THE CENTER FOR DISEASE CONTROL EXTENDED ITS NO SALE ORDER AND SET NEW HEALTH STANDARDS FOR CRUISE SHIPS
CRUISE LINES WILL HAVE TO ESTABLISH PROCESSES FOR IDENTIFYING PASSENGERS AND CREW WITH COVID-19, CREATE QUARANTINE ISOLATION PROCEDURES AND SHOW HOW THEY WILL SUPPLEMENT THEIR OWN ONBOARD MEDICAL RESOURCES
OF COURSE
THIS IS NOT JUST AN ISSUE FOR THE PORT OF SEATTLE
GOVERNMENTS, PORTS, AND CRUISE LINES AROUND THE WORLD ARE ENGAGED IN A MAJOR EFFORT TO DEVELOP STRATEGIES TO SLOW THE SPREAD OF THE VIRUS ABOARD VESSELS AND PROTECT PORT COMMUNITIES
HERE IN SEATTLE, CRUISE SHIP OPERATIONS WILL NOT RESUME UNTIL THE HEALTH EMERGENCY ABATES
WE LOOK FORWARD TO THE SAFE RETURN OF THE SHIPS AND THE ECONOMIC BOOST THE CRUISE INDUSTRY PROVIDES OUR REGION
EARLIER TODAY THE COMMISSION AND STAFF HAD A ROBUST DISCUSSION IN THE STUDY SESSION ABOUT THE PORT'S CONSTRUCTION AND CAPITAL IMPROVEMENT PLAN IN THIS NEW COVID ENVIRONMENT
TODAY, THE PORT HAS MORE THAN 1 BILLION DOLLARS IN ACTIVE CONSTRUCTION PROJECTS WITHIN THE AVIATION, MARITIME AND ECONOMIC DEVELOPMENT DIVISIONS
OVER THE NEXT TWO YEARS
WE PLAN ABOUT A HALF BILLION DOLLARS IN ADDITIONAL INVESTMENTS
A UNIQUE POSITION MANAGING THE MAJOR AVIATION AND MARITIME GATEWAYS CREATES TREMENDOUS OPPORTUNITIES FOR THE PORT TO GET OUR ECONOMY MOVING AGAIN AND PEOPLE BACK TO WORK
AT OUR NEXT MEETING ON APRIL 28TH WE'LL TAKE A FIRST LOOK AT PLANS FOR LONGER-TERM ECONOMIC RECOVERY
WE'LL PRESENT OUR FRAMEWORK OF THAT PLAN LATER ON TODAY'S AGENDA
THE COMMISSION WILL BE BRIEFED ON THE COVID-19 AID RELIEF AND ECONOMIC SECURITY CARES ACT
THE LEGISLATION PROVIDED TWO TRILLION DOLLARS IN ASSISTANCE FOR INDIVIDUALS, BUSINESSES AND GOVERNMENTS AFFECTED BY THE PANDEMIC
THE BILL DIRECTS FUNDING TO THE AIRPORT AND PORT RELATED BUSINESSES AS WELL AS WORKERS IN MANY PORT RELATED INDUSTRIES WHO HAVE LOST THEIR JOBS
THE FEDERAL STIMULUS WILL PROVIDE IMPORTANT SUPPORT FOR OUR REGIONAL RECOVERY EFFORTS AND YOU'LL HEAR MORE ABOUT THAT LATER
AGAIN, I WANT TO THANK THE COMMISSION AND ALL OUR STAFF FOR YOUR COMMITMENT TO THE PORT AND OUR COMMUNITY
THINGS WILL CONTINUE TO CHANGE AND WE WILL CONTINUE TO ADAPT WE HAVE A DEDICATED TEAM HERE AT THE PORT OGETHER
WE WILL GET THROUGH THIS
OUR EXPERIENCE IN THIS CRISIS WILL MAKE US EVEN STRONGER AS WE MOVE INTO THE FUTURE
THANK YOU
OKAY
THANK YOU DIRECTOR METRUCK
NEXT ITEM ON THE AGENDA IS ITEM NUMBER FIVE PUBLIC COMMENT
I BELIEVE WE RECEIVED TWO WRITTEN PUBLIC COMMENTS ADDRESSING ONE OF THE ISSUES ON OUR AGENDA TODAY UNDER 6F
WE WILL ALSO ACCEPT PUBLIC COMMENT FROM THOSE WHO HAVE SIGNED UP
WRITTEN MATERIALS PROVIDED TO THE CLERK WILL BE INCLUDED IN TODAY'S MEETING RECORD
THE CLERK HAS A LIST OF THOSE PREPARED TO SPEAK
AS THE CLERK CALLS YOUR NAME
WE WILL OPEN THE LINE AND COMMENTERS WILL HAVE TO UNMUTE THEMSELVES
PLEASE REPEAT YOUR NAME FOR THE RECORD
IF YOU ARE ON THE SKYPE MEETING AND ARE ALSO STREAMING THE MEETING, PLEASE MUTE THE VIDEO STREAM TO AVOID FEEDBACK
PLEASE NOTE
THERE IS NEARLY A THREE-MINUTE LAG ON THE VIDEO SCREEN STREAM
COMMENT TIME WILL BE LIMITED TO TWO MINUTES PER PERSON
CLERK
PLEASE CALL THE FIRST SPEAKER
YES
SO FIRST SIGNED UP TO SPEAK IS NAT STRATTON CLARK
HI GREAT
HI
MY NAME IS NAT STRATTON CLARK
I'M A LOCAL SMALL BUSINESS OWNER
I OWN FLORET BY CAFE FLORA AT SEA
WE HAVE 61 EMPLOYEES AND HAVE HAD TO LAY ALMOST ALL OF THEM OFF DUE THE MANDATED CLOSURE OF SIT DOWN DINING
IT HAS TRULY BEEN A HEARTBREAKING TIME
IN PREVIOUS CONVERSATIONS, RENT ABATEMENT THAT WAS AT THE FOREFRONT AND THEN HAD TO BE CHANGED TO DEFERMENT DUE THE FAA GUIDELINES
I'M SURE THAT YOU'RE ALL AS PLEASED AS I WAS TO SEE LAST WEEK THAT THE FAA HAS NOW CHANGED THOSE GUIDELINES TO MAKE IT A LOCAL DECISION
IN LIGHT OF THIS, I'D LIKE TO SEE THE COMMISSION FOLLOW IN THE FOOTSTEPS OF OTHER AIRPORTS AND ABATE ALL RENT AND FEES FOR A MINIMUM OF 120 DAYS OR UNTIL THE STAY AT HOME ORDER ENDS
AND LOOKING FORWARD, MULTIPLE AIRPORTS INCLUDING DENVER
SLC AND PDX HAVE MOVED ALL CONFECTIONERS WITH CONTRACT BASED ON MAGC'S PAYMENTS TO PERCENTAGE RENT BASED AGREEMENTS
ONCE WE ARE ALL ALLOWED TO REOPEN, FDA NEEDS TO ADOPT A SIMILAR MEASURE UNTIL EMPLOYMENT NUMBERS RETURNED TO 2019 LEVELS
THE PORT OF SEATTLE CENTURY AGENDA SAYS YOU'LL USE THE PORT'S INFLUENCE AS AN INSTITUTION TO PROMOTE WOMEN AND MINORITY BUSINESS ENTERPRISE GROWTH, SMALL BUSINESS GROWTH, AND WORKFORCE DEVELOPMENT
I'VE ALWAYS FELT THE PORT IS A LEADER WHEN IT COMES TO SUPPORTING SMALL BUSINESSES BUT SMALL BUSINESSES NEED RENT ABATEMENT NOT LOANS TO GET THROUGH THIS CRISIS
THIS IS THE MOMENT TO SUPPORT SMALL BUSINESSES IF YOU'D LIKE TO CONTINUE TO SEE US AT THE AIRPORT
EARLIER TODAY, I WAS ON A CONFERENCE CALL WITH 20 SMALL BUSINESS AND WOMEN AND MINORITY OWNED AIRPORT CONCESSIONAIRES THAT ARE IN TROUBLE
THEY'RE CONCERNED ABOUT HOW THEY'RE GOING TO GET THROUGH THIS
WE'LL BE PROPOSING A WORKING GROUP MADE UP OF SMALL BUSINESS CONCESSIONAIRES, COMMISSIONERS, AND ADR LEADERSHIP TO FIND A MUTUALLY COMPREHENSIVE SOLUTION ALONG WITH OUR INITIAL SUGGESTIONS OF WHAT THAT MIGHT BE
THE SENSE OF URGENCY CANNOT BE UNDERSTATED
THE FAA ENCOURAGES AIRPORTS TO CONSIDER THE BUSINESS SITUATION OF THE TENANT, THE CHANGE CIRCUMSTANCES CREATED BY THE PUBLIC HEALTH EMERGENCY AND THE DESIRABILITY OF HAVING SOLVANT TENANTS THAT CAN RESUME NORMAL OPERATIONS WHEN THE EMERGENCY ENDS
BY ABATING RENT FOR A MINIMUM OF 120 DAYS, EXTENDING OUR CONTRACT BY 5 YEARS TO HELP AMORTIZED DEBT, AND ONCE WE ARE ABLE TO REOPEN SWITCH TO PERCENTAGE-BASED RENT FOR MAG, YOU WILL BE ENSURING THAT SMALL BUSINESSES THAT MAKE THIS AIRPORT THRIVE WILL BE ABLE TO REOPEN
WE ARE IN UNPRECEDENTED TIMES
NOW IS THE TIME TO STAND BEHIND BUSINESSES WHO ARE STANDING BEHIND OUR WORKERS
OKAY, GREAT
THANK YOU
NEXT SPEAKER
NEXT WE HAVE LAURA GIBBONS
THIS IS LAURA GIBBONS
CAN YOU HEAR ME? YES, WE CAN
GO AHEAD
THIS IS LAURA GIBBONS AND I'M A MEMBER OF THE CLIMATE JUSTICE GROUP 360 SEATTLE AND A SEATTLE RESIDENT AND I SAW IN TODAY'S ACTION ITEM 6F THAT THERE ARE "SEVERAL CAPITAL IMPROVEMENT PROJECTS" PROPOSED TO OCCUR AT SEATAC OVER THE NEXT FIVE YEARS THAT WOULD REQUIRE CIVIL DESIGN SUPPORT SERVICES AND IT'S NOT CLEAR TO ME WHAT THESE PROJECTS ARE, BUT I JUST WANT TO SAY THAT I HOPE THAT THEY ARE NOT CAPITAL IMPROVEMENTS THAT ARE INTENDED TO ACCOMMODATE INCREASED AIRPORT AVIATION BECAUSE IT'S WELL ESTABLISHED THAT IF WE WANT TO HAVE A LIVABLE PLANET, WE NEED TO DECREASE CARBON EMISSIONS
THERE'S CURRENTLY NO WAY WE CAN MEET EMISSIONS CARBON WHILE INCREASING AVIATION SO THE ONLY VIABLE OPTION IS LESS AIR TRAVEL AND NOT MORE AND THAT SHOULD BE THE FOCUS OF ALL YOUR PLANNING
THANK YOU
THANK YOU
NEXT SPEAKER
YES
THE NEXT PERSON THAT WE HAVE IS STACEY OAKS AND THIS IS THE FINAL COMMENTER.
STACY? YES, CAN YOU HEAR ME? YES WE CAN
MY NAME IS STACY OAKS AND THANKS FOR TAKING COMMENTS TODAY
I JUST WANTED TO TALK A LITTLE BIT ABOUT ENVIRONMENTAL GOALS
LATER YOU'LL BE SPEAKING ABOUT THE CENTURY AGENDA AND MEETING ENVIRONMENTAL GOALS BY POWERING SOME OPERATIONS WITH RENEWABLE WASTE GAS INSTEAD OF FOSSIL FUEL GAS
CHANGING FUELS AWAY FROM FOSSIL FUELS IS CLEARLY A GOOD THING AND CAN BE PART OF A PATHWAY TO ACHIEVING GOALS, BUT WE CAN'T REALLY ACHIEVE THOSE GOALS WHILE ALSO MAKING PLANS TO EXPAND AIR TRAVEL, EXPAND CRUISE SHIP OPERATION
DURING THIS PUBLIC HEALTH CRISIS, WE HAVE TO STOP BUSINESS AS USUAL AND WE HAVE TO HEALTH AND SAFETY AS A TOP PRIORITY WHICH WE ARE CURRENTLY DOING
BUT WHEN WE EMERGE FROM THIS, WE NEED NEED TO KEEP THESE AS A TOP PRIORITY
THERE'S A MEME THAT REALLY STRUCK WITH ME THAT I SAW RECENTLY
IT'S A MEME OF A DIVER SWIMMING UPWARD FOLLOWED BY A SHARK LABELED COVID-19 AND BELOW THAT A BIGGER SHARK LABEL ECONOMIC RECESSION
ALTHOUGH THIS IS THE SHARK THAT MAYBE YOU'VE TRADITIONALLY FOCUSED ALL OF YOUR ENERGY ON, THIS ECONOMIC SHARK, RIGHT BELOW THAT IS THE JAW OF A MEGALODON LABELED CLIMATE CRISIS
WE CAN'T JUST CONTINUE TO STARE ONE SHARK AT A TIME OR WE'RE NEVER GOING TO MAKE IT OUT OF THE WATER
TO CONTINUE TO EXPAND THE GREENHOUSE GASES USED FOR OPERATIONS IS LIKE DECIDING TO KEEP CHURCH SERVICES OPEN DURING A PANDEMIC-- THE EFFECTS WILL BE SENT DOWN THE ROAD AND IT'LL LIKELY BE CATASTROPHIC AND THERE WILL BE NO WAY TO TAKE BACK THE DECISION ONCE IT'S BEEN MADE
I JUST URGE YOU ALL TO TAKE THIS MOMENT WHILE WE'RE IN THIS PAUSE TO FIGURE OUT HOW WE CAN COME OUT OF THIS DIFFERENTLY
GOING BACK TO BUSINESS AS USUAL IS NOT SOMETHING THAT WE CAN AFFORD
WE TALK ABOUT MEETING THESE GOALS BECAUSE WE KNOW THEY'RE IMPORTANT
WE NEED TO ACT LIKE IT
THANK YOU
THANK YOU STACY
AND I THINK THAT'S IT
IS THAT RIGHT, LAUREN? YEP, THAT IS CORRECT
THAT'S ALL OF OUR PUBLIC COMMENT
THAT'S ALL WE HAVE FOR PUBLIC COMMENT AT THIS TIME
HEARING NO FURTHER PUBLIC TESTIMONY WE WILL ADVANCE THE UNANIMOUS CONSENT CALENDAR ITEM NUMBER SIX
ITEMS ON THE CONSENT CALENDAR ARE CONSIDERED ROUTINE AND WILL BE ADOPTED BY ONE MOTION
ITEMS REMOVED FROM THE CONSENT CALENDAR WILL BE CONSIDERED SEPARATELY AS A SPECIAL ORDER OF BUSINESS
THERE IS ONE ITEM, 6E, WHICH IS HAS BEEN REMOVED FROM THE CONSENT AGENDA AND WILL BE HEARD UNDER A SPECIAL ITEM
SO AT THIS TIME THE CHAIR WILL ENTER A MOTION TO APPROVE THE CONSENT AGENDA COVERING ITEM 6A THROUGH 6J WITH THE EXCEPTION OF ITEM 6E
SO MOVED
OKAY, IT'S BEEN MOVED
DID WE ALREADY HAVE A MOTION? I THOUGHT WE ALREADY TOOK A VOTE ON THIS
YOU TOOK A VOTE ON APPROVING THE AGENDA NOW YOU WILL VOTE ON AMENDING IT
OKAY
OKAY, WE HAVE TWO MOVES
YOU'VE GOT TWO MOVES
I THINK THAT CONSTITUTES A MOTION AND A SECOND
ALL RIGHT, PLEASE SAY YES OR NO COMMISSIONERS WHEN YOU HEAR YOUR NAME CALLED
OKAY, COMMISSIONER BOWMAN? YES
COMMISSIONER CALKINS? I'M SORRY
CAN YOU TELL ME EXACTLY AGAIN WHAT WE'RE VOTING ON? YOU'RE VOTING ON THE CONSENT AGENDA WITH THE EXCEPTION OF ITEM 6E
I AM AN AYE
OKAY, COMMISSIONER CHO? AYE
COMMISSIONER FELLEMAN? AYE
COMMISSIONER STEINBREUCK? AYE
THE MOTION PASSES AND THE CONSENT AGENDA IS APPROVED
ITEM NUMBER 7? SO WE HAVE NO SPECIAL ORDERS TODAY BUT THIS IS THE POINT IN THE AGENDA WHERE WE WILL MOVE TO ITEMS REMOVED FROM CONSENT
SO WE HAVE ITEM 6 E, MOTION 2020-08 A MOTION OF THE PORT OF SEATTLE COMMISSION TO EXTEND THE DEADLINES ESTABLISHED IN MOTION 2019-13 FOR POLICY RECOMMENDATIONS ON THE USE OF PUBLIC FACING BIOMETRIC TECHNOLOGY AT PORT FACILITIES TO JUNE 30TH, 2020 AND FOR POLICY GOVERNING THE USE OF PUBLIC FACING BIOMETRIC TECHNOLOGY AT PORT FACILITIES TO AUGUST 31ST, 2020
COMMISSIONERS
THIS REQUEST IS TO DELAY THE DEADLINES OUTLINED IN THE MOTION APPROVED BY THE COMMISSION LAST DECEMBER
AS YOU MIGHT EXPECT, WE'VE BEEN UNABLE TO CONVENE OUR INTERNAL AND EXTERNAL BIOMETRICS ADVISORY GROUPS DURING THE PUBLIC HEALTH EMERGENCY
THE ADDITIONAL TIME REQUESTED FOR THIS MOTION HELPS REINFORCE OUR COMMITMENT TO STAKEHOLDER ENGAGEMENT IN THIS PROCESS
ERIC SHINFELD AND BRONCO VALDEZ ARE AVAILABLE TO ANSWER QUESTIONS
OKAY, ARE THERE QUESTIONS FROM COMMISSIONERS? LET'S START THE ROLL
ALL RIGHT, WE'LL BEGIN WITH COMMISSIONER BOWMAN
NO QUESTIONS
COMMISSIONER CALKINS? NO QUESTIONS EITHER
COMMISSIONER CHO? NO QUESTIONS
AND COMMISSIONER FELLEMAN? I HAVE NO QUESTIONS
I JUST WANTED TO MAKE SURE THAT-- THE PUBLIC SEEMS TO HAVE A LOT OF INTEREST IN THIS SUBJECT MATTER KNEW THAT THIS WAS BEING EXTENDED AND THANK YOU FOR DOING THAT
COMMISSIONERS, THIS IS ERIC SHINFELD
LET ME JUST SHARE THAT OBVIOUSLY WE DO NOT KNOW WHEN THIS PUBLIC HEALTH WILL END
THIS EXTENSION REPRESENTS OUR BEST GUESS ABOUT WHEN WE MIGHT BE ABLE TO CONVENE OUR EXTERNAL ADVISORY GROUPS AND WORK THROUGH THIS PROCESS
OBVIOUSLY IF THIS TIMELINE IS NOT REASONABLE, WE WILL BE COMING BACK TO YOU WITH AN EXTENDED TIME LINE EVEN BEYOND THIS EXTENSION JUST TO MAKE SURE AGAIN, AS EXECUTIVE DIRECTOR METRUCK, SAID THAT WE ARE FULLY ENGAGING AND GETTING THESE POLICY RECOMMENDATIONS WITH ALL OF OUR STAKEHOLDERS
OKAY, JUST A QUESTION
WHAT IMPLICATIONS, IF ANY, ARE THERE TO EXTENDING THE DEADLINE TO AUGUST 31ST OF THE POLICY RECOMMENDATIONS? THE MOTION PASSED ON DECEMBER 10TH BY THE COMMISSION PUTS A HOLD ON ANY NEW BIOMETRIC IMPLEMENTATION AT ANY OF THE PORT'S FACILITIES BEYOND THOSE IMPLEMENTATIONS THAT BEEN APPROVED BY POLICY
SO YOU DID APPROVE, IN MARCH, BIOMETRIC AIR EXIT, WHICH IS THE USE OF FACIAL RECOGNITION TECHNOLOGY FOR DEPARTING INTERNATIONAL PASSENGERS AT THE DEPARTING INTERNATIONAL GATE
SO THAT HAS BEEN AUTHORIZED TO MOVE FORWARD
BUT ANY OTHER BIOMETRIC IMPLEMENTATION THAT THE PORT HAS CONTROL OVER AT PORT FACILITIES WILL NOT MOVE FORWARD UNTIL ADDITIONAL POLICIES ARE FINALIZED
THANK YOU ERIC
THAT'S VERY CLEAR
OKAY
THANK YOU
WITH THAT IN MIND, IF THERE ARE NO FURTHER COMMISSION COMMENTS OR QUESTIONS, I WOULD CALL THE ITEM FOR A CALL FOR MOTION
SO MOVED
IS THERE A SECOND? SECONDED
OKAY, IT'S BEEN MOVED AND SECONDED BY COMMISSIONERS BOWMAN AND CHO
ALL THOSE IN FAVOR, PLEASE SAY AYE
OH, WE'LL VOTE BY ROLE CALL
SORRY
I'M SORRY
I'M STILL IN MY OLD MANNER
COMMISSIONER BOWMAN? AYE
COMMISSIONER CALKINS? AYE
COMMISSIONER CHO? AYE
COMMISSIONER FELLEMAN? AYE
AND COMMISSIONER STEINBREUCK? AYE
THE MOTION CARRIES
THAT TAKES US TO ITEM 8
OKAY ITEM 8 IS AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO: 1, MEET CENTURY AGENDA GOALS FOR CARBON REDUCTION BY EXECUTING A 10 YEAR SUPPLY CONTRACT WITH THE BEST VALUE PROPOSER FOR RENEWABLE NATURAL GAS TO SEATTLE-TACOMA INTERNATIONAL AIRPORT CENTRAL PLANT BOILERS AND CNG FUELING STATION COMMENCING DELIVERY ON OCTOBER 1ST, 2020, AND 2
AUTHORIZE A TOTAL CONTRACT COST OF 23 MILLION DOLLARS
COMMISSIONERS, OVER THE PAST SEVEN YEARS, PORT STAFF HAVE CONDUCTED EXTENSIVE RESEARCH TO EVALUATE OPTIONS FOR MEETING OUR AGGRESSIVE CARBON REDUCTION GOALS
THAT EFFORT DEMONSTRATED THAT PURCHASING RENEWABLE NATURAL GAS IS THE MOST COST-EFFECTIVE STRATEGY AVAILABLE TO US OVER THE COMING DECADE
THE PORT IS A CRITICAL COMPONENT OF OUR REGION'S TRANSPORTATION SYSTEM AND THIS CONTRACT REINFORCES, OUR PRINCIPLES TO SUPPORT GLOBAL TRADE AND TRAVEL BY HELPING TO IMPROVE ECONOMIC EQUITY AND PROMOTE HEALTHY COMMUNITIES AND A HEALTHY PLANET I'D LIKE TO TURN IT OVER TO LANCE LITTLE, MANAGING DIRECTOR OF AVIATION FOR ADDITIONAL REMARKS
PRESENTERS INCLUDE LANCE LITTLE, ELIZABETH LEVITT, AND STEPHANIE MEIN
THANK YOU
STEVE
GOOD AFTERNOON COMMISSIONERS
SEATTLE TACOMA INTERNATIONAL AIRPORT IS OPEN BUT IT IS NOT BUSINESS AS USUAL RIGHT NOW IN UNPRECEDENTED TIME OF CHANGE DUE TO COVID-19
AS YOU KNOW, WE'RE TRYING TO ADDRESS THE IMMEDIATE MAJOR IMPACTS TO OUR FACILITIES
WE ARE ALSO LOOKING TOWARDS THE ECONOMIC RECOVERY
THAT WORK IS TIED TO THE PORT COMMISSION TO PROMOTE ECONOMIC OPPORTUNITIES AND QUALITY OF LIFE IN THE REGION
OUR WORK TO ADVANCE TRADE, TRAVEL, COMMERCE, AND JOB CREATION MUST BE DONE IN AN EQUITABLE, ACCOUNTABLE, AND ENVIRONMENTALLY SUSTAINABLE WAY
TODAY WE'RE ASKING THAT YOU APPROVE THE AIRPORT TRANSITION TO RENEWABLE NATURAL GAS OR RNG
THIS ITEM WILL BE A REALLY BIG STEP TOWARD OUR COMMITMENT TO BE THE GREENEST AND MOST ENERGY EFFICIENT PORT IN NORTH AMERICA
WE CAN MAKE THIS INVESTMENT NOW AND ENSURE THE AIRPORT WILL CONTINUE TO OPERATE WITHOUT COMPROMISING OUR GOAL TO MAKE THOSE OPERATIONS SUSTAINABLE
THIS CONTRACT PROVIDES A STABLE RNG PRICE FOR 10 YEARS THAT WILL HELP US TO AVOID MARKET FLUCTUATIONS AND REDUCE UNCERTAINTY
THE PORT AND THE AIRPORT IN PARTICULAR HOLD A UNIQUE POSITION DURING THIS CRISIS
OUR INVESTMENT IN INFRASTRUCTURE WILL HELP TO REBUILD OUR ECONOMY
WE MUST CHOOSE TO MAKE THOSE INVESTMENT WISELY BY MAKING OUR ENVIRONMENT OUR COMMUNITIES, AND OUR OPERATIONS A PRIORITY NOW
I'D LIKE TO TURN IT OVER TO ELIZABETH LEVITT FOR ADDITIONAL REMARKS
THANK YOU LANCE
GOOD AFTERNOON COMMISSIONERS AND ED METRUCK
I AM REALLY PLEASED AND PROUD TO BE ABLE TO BRING THIS ITEM T ODAY TO YOU FOR COMMISSION CONSIDERATION, ESPECIALLY IN THE 50TH ANNIVERSARY MONTH OF EARTH DAY
THIS RNG INVESTMENT WILL REDUCE THE PORT'S OWNED AND OPERATED CARBON EMISSIONS ENABLING US TO MEET OUR 2020 15% REDUCTION GOAL ON TIME AS WELL AS OUR 50% REDUCTION GOAL FOR 2030, MEETING THAT GOAL 10 YEARS EARLIER
MEETING THAT GOAL A DECADE AHEAD OF SCHEDULE IS REALLY A REMARKABLE ACHIEVEMENT AND DEMONSTRATES TO OTHER ORGANIZATIONS IN OUR REGION THAT WE CAN MAKE THIS HAPPEN
PORT STAFF HAVE SPENT MANY YEARS INVESTIGATING WAYS THAT WE CAN REDUCE OUR CARBON EMISSIONS THROUGH EFFICIENCY AND DIRECT INVESTMENT AND RENEWABLE ENERGY RATHER THAN FOCUSING ON PURCHASING CARBON OFFSETS
THIS CONTRACT IS AN INVESTMENT IN THE GREEN ECONOMY AND REINFORCES THE PORT MARKET SIGNAL THAT SUPPORTS LONG-TERM INVESTMENT AND RENEWABLE FUEL PRODUCTION FACILITIES AND COMPANIES AND THIS IS AN ESPECIALLY IMPORTANT STEP AS WE LOOK FORWARD TO RECOVERY AFTER THE COVID-19 CRISIS
WHILE COVID-19 IMPACTS ARE REDUCING OUR SCOPE THREE GROUND TRANSPORTATION, AIRCRAFT, AND COMMUTING EMISSIONS, THERE'S REALLY ONLY A SMALL AFFECT ON THE PORT'S SCOPE 1 AND 2 EMISSIONS BECAUSE WE HAVE TO KEEP OUR AIRPORT TERMINAL HEATED AND OPERATING
RNG REDUCES OUR SCOPE ONE EMISSIONS ONLY AND THESE EMISSIONS ARE NOT WHERE THE COVID CRISIS IS HAVING A BIG IMPACT
THE IMPACT ON TRANSPORTATION EMISSIONS FROM COVID IS EXPECTED TO BE TEMPORARY AND NOT A PERMANENT NEW STATE
GLOBAL CARBON EMISSIONS TEND TO BOUNCE BACK FAIRLY SHORTLY AFTER A GLOBAL DISTURBANCE ENDS, AS HISTORY SUGGESTS
WE DO HOPE, HOWEVER, THAT MANY OF THE THINGS WE ARE LEARNING DURING THIS PANDEMIC ABOUT THE ABILITY TO REDUCE THESE EMISSIONS WILL HELP INFORM OUR RECOVERY
SO I'D ALSO LIKE TO RECOGNIZE THE TEAM THAT HAS WORKED HARD ON THIS GOAL FOR MANY MANY YEARS INCLUDING THE DIRECT SUSTAINABILITY TEAM, LESLIE STANTON AND STEPHANIE MINE AS WELL AS MEMBERS FROM AROUND THE PORT IN WHAT I WOULD CALL THE EXPANDED SUSTAINABILITY TEAM WHO'VE ALL HAD TO WORK TO MAKE THIS GOAL A REALITY
THAT INCLUDES KEITH WARNER FROM FACILITIES AND INFRASTRUCTURE, CARLOS LUIS AND PAUL READ FROM THE CHIEF PROCUREMENT OFFICE, RYAN STAMPER FROM THE PORT'S LEGAL DEPARTMENT AND A HOST OF OTHERS WHO HAVE MADE THIS REALITY
SO WHILE MANY ARE FOCUSING ON ELECTRIFICATION AS A SOLE CLIMATE STRATEGY, OUR TEAM REALLY DETERMINED THAT NATURAL GAS WAS THE WAY TO GO
SO WITH THAT, I'D LIKE TO TURN IT OVER TO STEPHANIE MINE WHO CAN PRESENT OUR ACTION
AND THANKS TO ALL FOR ALL YOUR HARD WORK
THANK YOU LANCE AND ELIZABETH FOR THOSE WORDS OF INTRODUCTION
IF WE COULD HAVE THE SLIDES
WE'RE NOW READY TO USE THEM
[LAUGHTER] YEAH GREAT
THANK YOU
SO COMMISSIONERS AND EXECUTIVE DIRECTOR METRUCK, THIS EFFORT IS A COLLABORATION BETWEEN THE AVIATION ENVIRONMENT AND SUSTAINABILITY AND THE AVIATION FACILITIES AND INFRASTRUCTURE DEPARTMENTS, BUT AS ELIZABETH MENTIONED, I'D REALLY LIKE TO RECOGNIZE THE INCREDIBLE SUPPORT WE'VE GOTTEN FROM THE LEGAL, PROCUREMENT, AND FINANCE DEPARTMENTS IN THIS EFFORT
THIS CONTRACT AND BUDGET ACTION IS THE FINAL STEP IN A MULTI-YEAR EFFORT TO PROCURE RENEWABLE NATURAL GAS FOR THE AIRPORT'S CENTRAL PLANT HEATING BOILERS AND OUR CNG FUELING STATION
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FOR THE PRESENTATION TODAY, I WILL REVIEW THE PORT'S CLIMATE GOALS AND HOW RENEWABLE NATURAL GAS OR RNG SUPPORTS THOSE GOALS, THEN I'LL DISCUSS WHY THAT CONTRACT IS NEEDED NOW AND THE ALTERNATIVES THAT WE CONSIDERED
I'LL THEN WRAP UP WITH THE PRINCIPLES THAT WE FOLLOWED FOR THE CONTRACT AND DETAILS ON THIS SPECIFIC BUDGET REQUEST
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COMMISSIONERS, THE CENTURY AGENDA GOALS THAT YOU APPROVED IN 2012 MATCH THOSE OF THE CITY OF SEATTLE AND KING COUNTY
FOR THE PORT OWNED AND CONTROLLED EMISSIONS, ALSO KNOWN AS SCOPE ONE AND TWO, OUR GOAL IS TO REDUCE THOSE FROM 2005 LEVELS BY 15% BY THIS YEAR, 2020; 50 PERCENT BY 2030; AND TO ACHIEVE NET ZERO CARBON EMISSIONS OR A HUNDRED PERCENT REDUCTION BY 2050
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WHEN WE EXAMINE THE PORT'S OWNED AND CONTROLLED EMISSIONS, OUR SCOPE 1 AND 2 EMISSIONS, YOU CAN QUICKLY SEE THAT FOSSIL NATURAL GAS, SHOWN IN THE DARK BLUE BAR, IS RESPONSIBLE FOR ABOUT 75% OF THOSE EMISSIONS AND THE TWO ACCOUNTS THAT ARE RESPONSIBLE FOR 90% OF THAT FOSSIL NATURAL GAS CONSUMPTION ARE THE AIRPORT'S CENTRAL PLANT BOILERS, OUR HEATING BOILERS, AND THE AIRPORT'S CNG BUSES
SO IN ORDER TO MEET OUR FUTURE EMISSION REDUCTION GOALS THAT YOU SEE IN THE THE 15 AND THE 50 PERCENT LINES THERE, YOU CAN SEE THAT WE HAVE TO ADDRESS THOSE SOURCES OF EMISSIONS
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AND WHEN WE PROJECT OUR EMISSIONS INTO THE FUTURE, YOU CAN SEE THAT THE DARK BLUE AIRPORT FOSSIL NATURAL GAS NUMBERS, THEY GO UP SLIGHTLY OVER TIME DUE TO SOME GROWTH FROM NEW FACILITIES LIKE THE INTERNATIONAL ARRIVALS FACILITY COMING ONLINE
BUT YOU CAN ALSO SEE OVER TIME THE EMISSIONS FROM THE OTHER SOURCES SHOWN IN LIGHT BLUE SUCH AS LIQUID FUELS AND ELECTRICITY, THEY ACTUALLY GO DOWN AND THAT'S PRIMARILY BECAUSE OF THE USE OF RENEWABLE DIESEL, WHICH IS NOW PORTWIDE AS OF 2019 ACROSS OUR DIESEL FLEET
BUT IT'S ALSO DUE TO GREEN DIRECT AND THE PROGRESSION TOWARDS CARBON-FREE ELECTRICITY, THANKS TO THE STATE'S 100% CLEAN ELECTRICITY BILL
BUT WHAT YOU CAN ALSO SEE ON THIS GRAPH IN THE BLACK HORIZONTAL LINE IS THE PORT'S 50 PERCENT BY 2030 REDUCTION GOAL OF ABOUT 12,000 TONS, WHICH CLEARLY CANNOT BE MET WITH BUSINESS AS USUAL NATURAL GAS CONSUMPTION EVEN IF WE HAVE ALL OF THOSE OTHER IMPORTANT INITIATIVES TRANSFORMING OUR LIQUID FUEL AND ELECTRICITY SECTORS AND EVEN IF WE MAXIMIZE EFFICIENCY WITHIN THE CENTRAL HEATING PLANT
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SO WHAT WE'RE PROPOSING IN THIS RNG ACTION IS THAT THE AIRPORT PURCHASES ENOUGH RNG TO BRING DOWN THE EMISSION PROFILE OF THE PORT ENOUGH TO MEET THE 2030 EMISSION REDUCTION GOAL, BUT WITHOUT SURPASSING THE GOAL SO THAT WE CAN MANAGE OUR COSTS
WHEN I PRESENT THE ACTION ITEM IN A FEW SLIDES, I WILL ALSO BE PRESENTING SOME OTHER COST REDUCTION MEASURES T HAT WE INCLUDED IN THIS ACTION ITEM ESPECIALLY IN LIGHT OF THE COVID-19 IMPACTS
SLIDE SO FOR THE BENEFIT OF THOSE LISTENING IN AND WATCHING WHO MAY NOT BE FAMILIAR WITH RNG, I WANTED TO REVIEW EXACTLY WHAT IT IS
RNG IS CONSIDERED A RENEWABLE OR BIOGENIC FUEL, WHICH UNDER UNITED NATIONS CONVENTIONS, MEANS IT IS TREATED AS A ZERO CARBON FUEL AND THAT'S BECAUSE RNG IS MADE UP OF CARBON MOLECULES THAT ARE ESSENTIALLY RECYCLED FROM EXISTING CARBON IN OUR ECOSYSTEM RATHER THAN USING NEW CARBON FROM FOSSIL OR GEOLOGIC SOURCES
THAT ARE BURIED DEEP IN THE GROUND
SO WHEN ORGANIC MATTER BREAKS DOWN INSIDE A LANDFILL OR OTHER ANAEROBIC CONDITIONS A MIXTURE OF GASES, THE MAJORITY OF WHICH IS METHANE, IS GENERATED BY THE BACTERIA THAT ARE CONSUMING THAT ORGANIC MATTER AND IF THOSE GASES ARE CAPTURED AND CLEANED TO PIPELINE QUALITY, THEY CAN BE USED AS A SUBSTITUTE FOR OR BLENDED WITH FOSSIL NATURAL GAS
ONE OF THE CHALLENGES OF THAT, THOUGH, IS THAT THERE ARE REALLY LIMITED NUMBERS OF RNG PRODUCTION FACILITIES IN THE US
THERE ARE ABOUT A HUNDRED OF THEM WHICH WHEN YOU COMPARE TO ABOUT THE 900,000 OIL AND GAS WELLS THAT WE HAVE IN THIS COUNTRY, YOU CAN GET SOME PERSPECTIVE ABOUT THE LIMITED SUPPLY
AND THE AMOUNT OF GAS COMING OFF THOSE FACILITIES IS ALSO NOT THAT LARGE, AT LEAST IN COMPARISON TO THE FOSSIL INDUSTRY, AND IT'S ALSO VARIABLE WHICH IS WHY YOU CAN SEE THAT LANDFILLS DOMINATE THE PROJECT NUMBERS IN THE SECOND BULLET
THE AMOUNT OF CAPITAL INVESTMENT REQUIRED TO CAPTURE, CLEAN, AND INJECT THE GAS INTO THE PIPELINE IS VERY HIGH
SO THE MORE THAT THESE PROJECTS CAN FOCUS ON LARGE AND STEADY SUPPLIES OF HIGH ENERGY CONTENT WASTE, LIKE WE HAVE IN LANDFILLS, THE MORE COST-EFFECTIVE THE PROJECT TENDS TO BE
AND LASTLY, FOR THE FINAL BULLET I WANTED TO POINT OUT THAT ALMOST ALL OF THE RNG PRODUCED IN THE U.S
IS BEING USED IN THE TRANSPORTATION SECTOR
AND THIS IS BECAUSE THE FEDERAL RENEWABLE FUEL STANDARD PROVIDES INCENTIVES, ECONOMIC INCENTIVES, THAT BRING DOWN THE COST OF RNG TO MAKE IT ABOUT EQUAL TO THE PRICE YOU PAY FOR FOSSIL NATURAL GAS WHEN YOU USE IT AS A TRANSPORTATION FUEL
AND ADDITIONALLY STATES LIKE CALIFORNIA AND OREGON, WHO HAVE ACLEAN FUEL STANDARD, THEY CAN BRING DOWN THOSE PRICES EVEN FURTHER
SO IT REALLY ENDS UP DIRECTING ALL OF THE RNG INTO THE TRANSPORTATION SECTOR
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AND JUST SO WE CAN PUT SOME VISUALS ON THIS
I WANTED TO SHOW SOME EXAMPLES OF WHAT AN RNG PRODUCTION FACILITY LOOKS LIKE
ON THE FAR LEFT, YOU CAN SEE GAS CLEANING AND INJECTING THE FACILITY AT THE CEDAR HILLS LANDFILL HERE IN KING COUNTY
AND THAT'S BASICALLY, THOSE BIG STACKS YOU SEE ARE THE GAS CLEANING TECHNOLOGY AND DRYING TECHNOLOGY
IN THE MIDDLE PHOTO, YOU CAN SEE THE RENTON WASTEWATER TREATMENT PLANT, WHICH IS WHERE SOME OF THE AIRPORT'S OWN WASTEWATER FLOWS AND WHICH WAS ONE OF THE FIRST IN THE NATION
TO CLEAN AND INJECT IT'S GAS INTO THE PIPELINE BACK IN 1988 AND IT'S THE OLDEST OPERATING WASTEWATER RNG FACILITY IN THE COUNTRY
AND ON THE FAR RIGHT, YOU CAN SEE, AND AGAIN THIS IS SORT OF TO GIVE YOU A SENSE OF SCALE, YOU CAN GET AN EXAMPLE OF A DAIRY FARM THAT'S SHOWING THE MANURE COLLECTION PONDS THAT ARE COVERED PLUS SOME TRAILERS AND SKID MOUNTED GAS CLEANING SYSTEMS THAT ALLOW THAT GAS TO BE CLEANED AND DELIVERED INTO THE PIPELINE
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SO IN THE CURRENT ECONOMIC CONTEXT, I REALLY WANT TO ADDRESS WHY RNG IS NEEDED NOW
PRIOR TO ISSUING THIS RFP FOR THIS GAS BACK IN JANUARY 2019, STAFF DID CONSIDERABLE RESEARCH INTO THE COST AND AVAILABILITY OF RNG AND WE COMPARED IT TO THE COST OF ELECTRIFICATION WHICH IS GENERALLY THE MOST COMMONLY EXPLORED ALTERNATIVE AND WHERE YOU SEE A LOT OF POLICIES BEING FOCUSED
TO MOVE TOWARDS ELECTRICITY, IT WOULD INVOLVE REPLACING OUR FOUR NATURAL GAS BOILERS WITH ELECTRIC ONES, WHICH IF WE JUST BALLPARK, WOULD COST A SEVERAL HUNDREDS OF MILLIONS OF DOLLARS AND IT WOULD ALSO REQUIRE A SIGNIFICANT UPGRADE TO OUR ELECTRICAL TRANSMISSION CAPABILITY TO THE AIRPORT
AND ANOTHER CONSIDERATION IS THAT AS A CENTER THAT HAS TO REMAIN OPEN DURING EMERGENCIES, THE AIRPORT CURRENTLY HAS THE ABILITY TO USE LIQUID FUELS IN OUR NATURAL GAS BOILERS IF THERE IS A DISRUPTION TO THE NATURAL GAS PIPELINE
IF WE WERE TO SWITCH TO ELECTRIC BOILERS, WE WOULD NEED AN ADDITIONAL ELECTRICAL BACKUP GENERATION SYSTEM THAT WOULD DWARF THE CURRENT BACKUP SYSTEMS THAT ARE CURRENTLY USED BY THE AIRPORT TERMINAL
BUT WHAT IS PARTICULARLY ADVANTAGEOUS ABOUT RNG IS THAT WE CAN USE IT WITHOUT CHANGES TO OUR OPERATIONS OR INFRASTRUCTURE AT THE AIRPORT AND IT'S AVAILABLE NOW AND IT IS THE LOWEST COST OPTION TO MEET OUR CLIMATE GOALS AND WHILE OUR FIRST FOCUS AT THE AIRPORT AND AT THE COMMISSION IS ON EFFICIENCY, AFTER WE'VE ADDRESSED ALL OF THOSE EFFICIENCY OPTIONS, THE PORT TRIES TO SEEK WAYS TO REPLACE FOSSIL ENERGY WITH RENEWABLE EQUIVALENTS RATHER THAN JUST BUYING GLOBAL CARBON OFFSETS
AND ONE OF THE KEY REASONS THAT WE DO THAT AND WE HEAR THESE PRINCIPLES ECHOED LOUDLY BY THE COMMISSION IS THAT WE CAN PLAY A CRITICAL ROLE IN THE CLEAN ENERGY ECONOMY AND THE ECONOMIC DEVELOPMENT
WE CAN SEND MARKET SIGNALS, WE CAN CREATE DOMESTIC JOBS, AND WE CAN REALLY BOOST SECTOR GROWTH IN THE CLEAN ENERGY ECONOMY
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SO I WILL NOW DIVE INTO THE SPECIFICS ON THE TIMING AND PRICE AS THEY RELATE TO THIS CONTRACT AND BUDGET ACTION
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SO THE RFP AND THE SUBSEQUENT PROPOSED CONTRACT THAT WE NOW HAVE, IT INCLUDED SEVERAL ITEMS THAT REFLECT THE PRIORITIES OF THE PORT AND THE COMMISSION
IN ADDITION TO RECEIVING ALL OF THE ENVIRONMENTAL ATTRIBUTES OF THE RNG GAS IN THIS CONTRACT, THE CONTRACT OFFERS A FIXED PRICE WITH THE ABILITY TO BUY MORE GAS IF WE HAVE AN UNUSUALLY COLD WINTER OR THERE ARE OTHER INCREASES TO OUR DEMAND THAT WE NEED TO RESPOND TO IN A SHORT AMOUNT OF TIME
ANOTHER CRITICAL ELEMENT OF THE CONTRACT IS THAT THE SOURCE OF THE RNG COMES FROM NEW SOURCES RATHER THAN JUST DIVERTING GAS OR TRYING TO OUT COMPETE ON GAS THAT'S ALREADY SERVING OTHER CUSTOMERS
AND WE REFER TO THAT AS ADDITIONALITY
WE ALSO WANTED TO ENSURE THAT THIS GAS THE THE STRICTEST FEDERAL DEFINITION OF A RENEWABLE CELLULOSIC BIOFUEL
AND THE REASON WE DID THAT IS IT ALLOWS US TO GENERATE THE HIGHEST VALUE CREDITS THAT ARE ON THE MARKET OR COULD COME IN FUTURE MARKETS
AND SPEAKING OF THAT, WE ALSO WROTE THIS CONTRACT IN A WAY THAT THE PORT RECEIVES 100% OF THE VALUE OF ANY OF THESE CREDITS TO REDUCE OUR RNG ENERGY COSTS AND WE HAVE THE RIGHT TO 100% OF ANY FUTURE CREDITS THAT ARE IMPLEMENTED SUCH AS A CLEAN FUEL STANDARD OR A RENEWABLE HEATING STANDARD IF ONE WERE TO BE DEVELOPED
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THIS BUDGET ACTION REQUEST AN INCREASE TO THE OPERATIONAL COST TO THE AIRPORT UTILITY OF ABOUT 2.3 MILLION DOLLARS PER YEAR OVER AND ABOVE THE FOSSIL NATURAL GAS COST
AS YOU CAN SEE IN THE MIDDLE COLUMN, THE MAJORITY OF THIS COST RELATES TO THE CENTRAL HEATING PLANT FUEL, WHICH DOESN'T BENEFIT FROM FEDERAL INCENTIVES
WHEN THE ANNUAL COST, IN THE MIDDLE COLUMN, IS ROLLED UP INTO THE 10-YEAR CONTRACT, YOU CAN SEE THE TOTALS FOR THIS BUDGET REQUEST IN THE RIGHT-HAND COLUMN ONE WORD ABOUT THE ASTERISK NEXT TO THE TRANSPORTATION OR CNG FUEL COSTS
WE AIM FOR THOSE COSTS TO BE EQUAL TO OR LESS THAN CURRENT FOSSIL PRICES, BUT THE VALUE OF THE FEDERAL CREDIT HAS FLUCTUATED QUITE A BIT BETWEEN THESE LAST TWO FEDERAL ADMINISTRATIONS
SO THE COST I'M SHOWING ON THIS ITEM OF $150,000 PER YEAR COULD, IN FACT, VARY FROM A CREDIT OF A MILLION DOLLARS PER YEAR TO SOME MAXIMUM COST OF $300,000 PER YEAR
SO THE 150,000 I HAVE SHOWN HERE IS A CONSERVATIVE ESTIMATE BASED ON THE CREDIT VALUES THAT WE'VE SEEN MORE RECENTLY IN THIS ADMINISTRATION
BUT WE DO EXPECT THAT CREDIT VALUE TO INCREASE AGAIN AND THE COST TO GO DOWN TO NEAR ZERO
ON THE LEFT HAND SIDE, YOU CAN SEE THE BUDGET SPECIFICALLY IDENTIFIED FOR THIS CALENDAR YEAR 2020
THE ORIGINAL PUBLISHED BUDGET FOR 2020 ALLOCATED $1.5 MILLION IN TOTAL FOR RNG, WHICH WE ALREADY HAD BAKED INTO THE PLANNED EXPENSES FOR THIS YEAR, BUT GIVEN THE IMPACTS OF COVID-19
WE WORKED DILIGENTLY WITH THE PROPOSER TO POSTPONE THE DELIVERY OF THE RNG UNTIL OCTOBER 1ST OF THIS YEAR WHICH WILL SAVE $800,000 FROM THE ORIGINAL BUDGET AND POSTPONE THOSE FINANCIAL IMPACTS
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WITH RESPECT TO HOW THIS BUDGET INCREASE AFFECTS DIFFERENT COST CENTERS AND PARTNERS, I WANTED TO BREAK THIS DOWN INTO THE TRANSPORTATION AND THE HEATING RNG
AS I MENTIONED EARLIER, THE TRANSPORTATION RNG IS SUBJECT TO THE FEDERAL INCENTIVES AND THE COST INCREASE TO THAT COST CENTER IS EXPECTED TO BE NEGLIGIBLE OR MAY EVEN INCUR A CREDIT AND THOSE COSTS OR CREDITS WOULD THEN BE RECOVERED BY THE USERS OF THE CNG BUSES WHICH INCLUDES THE RENTAL CAR FACILITY AND USERS OF EMPLOYEE PARKING
FOR THE HEATING FUEL, HOWEVER, WHERE WE DON'T HAVE FEDERAL INCENTIVES, THE COSTS ARE ALLOCATED TO THE AIRPORT'S EXPENSES FOR 23% OF THE TOTAL AND 77% TO THE AIRLINE'S RATES AND CHARGES
TO GIVE A SENSE OF SCALE, THIS RNG COST IN TOTAL IS EXPECTED TO INCREASE THE AIRLINE'S RATES AND CHARGES BY LESS THAN 1% AND NONE OF THIS COST WILL BE BORNE BY AIRPORT DINING AND RETAIL, OR ANY SMALL AIRPORT BUSINESSES NOR THE TAX LEVY
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FINALLY, I WANTED TO EXPLAIN THIS USING A METRIC THAT WE'VE OFTEN USED WITH COMMISSION WHEN WE TALKED ABOUT THE BEST VALUE OF A PROJECT THAT REDUCES CARBON EMISSIONS AND WE EXAMINE THAT, REALLY, ON A COST PER TON OF CARBON MITIGATED BASIS
IN THE PAST, COMMISSION HAS USED THIS METRIC TO GAUGE THE EFFECTIVENESS OF AN INITIATIVE AND HAS PREVIOUSLY APPROVED OTHER EFFICIENCY AND FUEL SWITCHING PROJECTS TYPICALLY AT OR LESS THAN $300 A TON
RNG, AS A HEATING FUEL ALONE, HAS A COST OF ABOUT $270 A TON AND AS A TRANSPORTATION FUEL, IT COULD RANGE FROM $0 WITH A LOT OF CREDITS TO ABOUT $60 A TON
AND SO THAT GIVES US A TOTAL PROJECT MITIGATION OF ABOUT $209 A TON
FROM A PERSPECTIVE OF SCALE, WHEN YOU CONSIDER THAT THIS CONTRACT WILL HELP THE PORT ACHIEVE A 50% REDUCTION ACROSS ITS CARBON EMISSIONS, THIS IS A PARTICULARLY EFFECTIVE CARBON MITIGATION VALUE, ESPECIALLY IN LIGHT OF THE LIMITED AND EXTREMELY EXPENSIVE ALTERNATIVES TO FOSSIL NATURAL GAS
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AND WITH THAT I AM HAPPY TO TAKE ANY QUESTIONS BEFORE THE COMMISSION CONSIDERS THIS BUDGET AND CONTRACT ACTION
SO THANK YOU
THANK YOU, STEPHANIE AND LESLIE
A REALLY EXCELLENT PRESENTATION
WE'RE GOING TO TAKE COMMISSIONER QUESTIONS AND COMMENTS AT THIS TIME
LET'S START WITH THE TOP OF THE LIST
HI, THIS IS COMMISSIONER BOWMAN
I DON'T HAVE ANY QUESTIONS
I GOT A GOOD DETAILED BRIEFING ON THIS ABOUT A WEEK AGO AND MOSTLY JUST WANT TO SAY CONGRATULATIONS TO THE TEAM
I KNOW THIS HAS BEEN LITERALLY SEVEN YEARS IN THE MAKING
IT'S THE RIGHT THING TO DO AND I WANT TO-- ALSO THE STAFF, YOU GUYS HAVE JUST BEEN PHENOMENAL IN BRINGING THIS FORWARD TO US
BUT I ALSO WANT TO THANK COMMISSIONERS FELLEMAN AND CALKINS FOR THEIR LEADERSHIP ON THE ENVIRONMENTAL ENERGY AND SUSTAINABILITY COMMITTEE FOR OVERSEEING THIS WORK ON BEHALF OF THE COMMISSION, SO NO QUESTIONS
OKAY
THANK YOU
COMMISSIONER CALKINS? THANK YOU SO MUCH TO THE STAFF, TO ELIZABETH AND YOUR TEAM FOR T HIS AND STEPHANIE
WE'VE SPENT MANY HOURS IN COMMITTEE MEETINGS AND BRIEFINGS TRYING TO BRING UP TO SPEED ONE LIKE ME ON A PRETTY COMPLEX BUT REALLY INTERESTING INITIATIVE
AND I JUST HAVE ONE SPECIFIC CLARIFYING QUESTION
AS WE LOOK AT THAT TOP LINE THAT WE'RE VOTING ON TODAY
IT SOUNDS TO ME THAT YOU HAVE STRUCTURED IN SUCH A WAY TO BE THE MOST CONSERVATIVE FROM A BUDGET PERSPECTIVE
AND SO IF A COUPLE OF THINGS GO OUR WAY IN THE FUTURE, IT COULD BE SIGNIFICANTLY LESS THAN THAT
AND I'M THINKING SPECIFICALLY IF THERE IS A MORE, LET'S CALL IT CLIMATE FRIENDLY ADMINISTRATION, COME JANUARY 2021, OR IF WE'RE ABLE TO SUCCESSFULLY ACHIEVE OUR NUMBER ONE LEGISLATIVE PRIORITY, WHICH IS SOME SORT OF CLEAN FUEL STANDARD OR LOW CARBON FUEL STANDARD IN THE STATE OF WASHINGTON WOULD EITHER OR BOTH OF THOSE EFFECTIVELY REDUCE THAT TOP LINE NUMBER
YES, SO I GUESS BROADLY I DO I WANT TO AGREE THAT YES, THE NUMBER THAT I'VE PRESENTED HERE IS A CONSERVATIVE ESTIMATE AND WE ONLY SEE THAT TOTAL PRICE GOING DOWN OVER TIME WITH MORE CLIMATE-FRIENDLY ACTION
A CLEAN FUEL STANDARD LIKE WE HAVE IN CALIFORNIA AND OREGON WOULD BRING THE TRANSPORTATION RELATED COSTS DOWN EVEN FURTHER SO WE COULD ACTUALLY START APPLYING A CREDIT TO THOSE COST CENTERS THAT WOULD BE LESS THAN THE OVERALL COST OF ANY TYPE OF TRANSPORTATION FUEL
AND THEN SIMILARLY, THE MORE THAT WE HAVE CAP AND TRADE OR A RENEWABLE HEATING STANDARD OR OTHER APPROACHES TO BRING MORE RENEWABLE NATURAL GAS ONLINE AND AND DEVELOPING CREDITS THEN WE WOULD ALSO SEE THOSE COST CENTERS GO DOWN
WE HAVE PUT THIS MOTION WITH THE SORT OF CONSERVATIVE BUDGET AMOUNT SO THAT WE DON'T HAVE TO CONTINUALLY COME TO COMMISSION AND THAT WE CAN SIGN THIS PARTICULAR CONTRACT
BUT WE DO ANTICIPATE THAT THOSE PRICES WOULD GO DOWN
EXCELLENT
THANK YOU FOR THE CLARIFICATION
AND I WILL SAY I KNOW THERE WAS, AS WE ARE BEING VERY CONSCIENTIOUS ABOUT BUDGETS IN THIS MOMENT, I KNOW EVERY LINE ITEM IN OUR BUDGET NEED TO BE CONSIDERED AND I AM EXTRAORDINARILY PROUD OF OUR LEADERSHIP TEAM FOR SAYING THIS IS A PRIORITY EVEN IN THE MIDST OF THESE COVID COLORED TIMES
THANK YOU, AGAIN, EVERYONE
ALL RIGHT
NEXT WE WILL GO TO COMMISSIONER CHO
YEAH, I JUST WANTED TO ECHO THE SENTIMENT AND CONGRATULATE YOU ALL THAT THIS HAS BEEN DONE AHEAD OF SCHEDULE
I DID WANT TO ASK HOWEVER, I THINK THE DISTINCTION BETWEEN GOVERNMENT SUBSIDIES AND OR PROGRAMS TO LOWER THE COST BETWEEN USING RNG FOR HEAT AND TRANSPORTATION IS A VERY IMPORTANT ONE, I THINK THAT'S A VERY IMPORTANT POLICY NUANCE AND SO I'M CURIOUS, ARE YOU AWARE OF ANY PROGRAMS IN THE PRESS? OR ANYTHING BEING DISCUSSED FOR THE FUTURE FOR CREDITS OR SUBSIDIES OR PROGRAM SPECIFICALLY FOR WHEN RNG IS USED FOR HEATING? YES
THERE ARE TWO DIFFERENT POLICY APPROACHES THAT WE HAVE BEEN FOLLOWING AND LOOKING AT WHICH IS THE MORE LIKELY TO OCCUR AT THE STATE LEVEL
I DON'T KNOW THAT WE'D SEE ANYTHING HAPPENING AT THE FEDERAL LEVEL, BUT THERE ARE SEVERAL INITIATIVES FOR WHAT IS ESSENTIALLY A RENEWABLE HEATING STANDARD
SO SIMILAR TO RENEWABLE ELECTRICITY STANDARDS WHERE THE UTILITIES, SO IN THIS CASE THE GAS UTILITIES, WOULD CONTINUALLY LOWER THE INTENSITY OR THE AMOUNT OF CARBON CONTENT OF THEIR NATURAL GAS AND THEY WOULD DO THAT THROUGH RNG AND THEN THOSE PROGRAMS WOULD LOWER THE COSTS IN THAT WAY
AND THEN THERE ARE OTHER PROGRAMS THAT ARE BEING EXPLORED MORE IN EAST COAST STATES WHERE THERE IS A HIGHER HEATING DEMAND TO ALSO HAVE SOMETHING SIMILAR TO THE CLEAN FUEL STANDARD, BUT IT BE A CLEAN HEATING STANDARD WHERE THERE'S SORT OF A SIMILAR STRUCTURE WHERE CARBON CREDITS ARE GENERATED FOR THE USE OF THAT FUEL AND TARGETS AND BASICALLY CAP THAT WOULD HELP BRING DOWN THOSE COSTS
SO WE HAVE BEEN EXPLORING THEM AND WE ARE ACTIVELY LOOKING AT HOW WE CAN ENGAGE COMMISSION IN HELPING TO BRING MORE OF THOSE STANDARDS ONLINE
THE FOLLOW-UP IS THAT, I'M SORRY I MISSED THIS IN THE PRESENTATION, BUT I ALSO THINK ANOTHER I MPORTANT PART OF THIS PROGRAM IS FOR THE PUBLIC TO UNDERSTAND THAT THE SOURCE OF RNG THAT WE ARE EXTRAPOLATING FROM IS A NEW SOURCE
BASICALLY, WE'RE NOT TAPPING INTO AN RNG SITE THAT EXISTED PREVIOUS TO THIS PROGRAM, BUT ONE OF THE CONDITIONS OF THIS PROGRAM WAS TO BASICALLY BUILD OUT OR EXPAND THE NET USE OF RNG
IS THAT RIGHT? THAT'S CORRECT
YEAH
I MAYBE BRUSHED OVER THAT A BIT QUICKLY BUT THAT'S ADDITIONALITY IS HOW WE REFER TO THAT BUT IT WAS CRITICALLY IMPORTANT TO US THAT WHEN WE WENT OUT FOR THIS RFP THAT WE DIDN'T JUST SHUFFLE THE DECK
THAT SOMEONE WHO WAS USING RNG THAT WE BASICALLY TOOK IT AWAY FROM THEM
WE WANTED TO ADD MORE RENEWABLE FUELS ON TO THE PIPELINE
WE WANTED TO CREATE MORE SOURCES AND HELP DEVELOP THE MARKET
SO IT WAS A CONDITION OF THE THE RFP THAT ANY SOURCES THAT WE TAKE ON WOULD BE NEW SOURCES BROUGHT ON TO THE PIPELINE BASICALLY IN OUR NAME
THANK YOU SO MUCH
THANK YOU SO MUCH
WE'LL THEN GO COMMISSIONER FELLEMAN
I'D LIKE TO ADD MY VOICE TO THE CHORUS OF GREAT APPRECIATION FOR ALL THE WORK THAT HAS BEEN DONE OVER THE YEARS TO GET THIS TO WHERE IT IS
WE'RE EXCITED TO BE ABLE TO FINALLY SEE IT COME TO FRUITION
I THINK IT'S BUILDING OFF OF COMMISSIONER CHO'S COMMENTS
NOT ONLY IS IT A NEW PROJECT BUT IT'S KIND OF UNUSUAL IN THAT IT'S SORT OF FUNGIBLE THAT UNFORTUNATELY THIS PLANT IS NOT LOCATED IN WASHINGTON STATE, BUT IT'S SORT OF A TRADE OF THESE CARBON CREDITS OF SORTS FOR USBUILDING A FACILITY ELSEWHERE
WHICH IS SOMEWHAT OF A REFLECTION OF THAT BECAUSE WE WE DON'T HAVE CLEAN FUEL STANDARD, WE DON'T HAVE THE INCENTIVES IN WASHINGTON FOR THIS TO BE BUILT AND OR TO BE USED LOCALLY
AND SO I REALLY SEE THAT WE WILL CONTINUE TO DOUBLE DOWN ON THOSE EFFORTS
BUT I'M SURPRISED WE HAVE NOT INCLUDED THE HEATING COMPONENT TO THE LCFS AS PART OF OUR LEGISLATIVE AGENDA
AND CERTAINLY WITH THIS PROJECT, EVEN WITHIN LCFS THE WAY IT STANDS, WOULD HAVE NEGLIGIBLE BENEFITS TO THE COST GIVEN THAT MOST OF IT IS FOR HEATING
AND SO I REALLY THINK WE NEED TO AMEND OUR LEGISLATIVE AGENDA TO ABSOLUTELY INCLUDE THIS
BUT ULTIMATELY IT'S JUST CLEAR, THE PORT'S COMMITMENT TO CONTINUE TO TAKE RESPONSIBILITY EVEN IN HARD TIMES
I THINK IT'S A GREAT THING
THE PRIORITY TO RECOVER FROM THE COVID CRISIS CANNOT BE OVERSHADOWED BY THE FACT THAT WE WILL HAVE, YOU KNOW-- UH OH, WE LOST YOU
THEY ARE FROZEN
COMMISSIONER FELLEMAN? ARE YOU STILL WITH US? MAYBE A CONNECTIVITY ISSUE
COMMISSIONER STEINBREUCK, WOULD YOU LIKE TO? I HAVE SOME QUESTIONS ACTUALLY
SOME QUESTIONS FOR OUR PRESENTERS
FIRST OF ALL, I DIDN'T HEAR WHAT THIS NEW SOURCE OF RNG IS AND HOW DOES IT GET DISTRIBUTED TO THE AIRPORT? SO CURRENTLY UNDER OUR PROCUREMENT RULES, I CAN'T SPEAK TO THE SPECIFIC AT THIS TIME
ONCE THE CONTRACT IS FULLY EXECUTED, TOMORROW, WE'LL BE ABLE TO TALK MORE PROPOSER AND THE SOURCES PUBLICLY ABOUT IT
BUT WHAT I CAN SAY ABOUT ANY SOURCE THAT WE'D BE TAKING ON IS THAT THE WAY THAT IT WORKS, CONTRACTUALLY, IS THAT THERE IS A TRACKING SYSTEM TO MAKE SURE THAT EVERY INPUT OF RNG ONTO THE NATIONAL PIPELINE SYSTEM IS BALANCED WITH ANY OUTPUT THAT WE TAKE CONTRACTUALLY
SO IT WORKS VERY SIMILARLY TO GREEN ELECTRICITY WHERE YOU MAY NOT BE ABLE TO GUARANTEE THAT THE EXACT ELECTRON THAT YOU USED IS THE GREEN ELECTRON, WHEN YOU HAVE A POWER PURCHASE AGREEMENT TO SAY THAT SOLAR PANEL IS BEING GENERATED IN MY NAME AND I AM TAKING THOSE ELECTRONS, IT WORKS SIMILARLY FOR RNG WHERE WE HAVE A TRACKING SYSTEM TO NOTE EVERYTHING THAT COMES ONTO THE PIPELINE AND EVERYTHING THAT WE ARE TAKING OFF IS BALANCED
BUT YOU DO KNOW THAT IT WILL BE PIPED TO SEATAC USING EXISTING INFRASTRUCTURE? CORRECT
OKAY BUT YOU CAN'T DISCLOSE THE SOURCE SO WE DON'T KNOW ANYTHING ABOUT THE SUPPLIER OR THE ACTUAL ADDITIVE ASPECT OF THIS
OTHER THAN YOU'VE TOLD US
ALL OF THE CONTRACTUAL ELEMENTS DESCRIBED IN THE SLIDESHOW, THIS PROPOSER MET
SO IT MEETS ALL OF THOSE ADDITION ALITY REQUIREMENTS, ALL OF THE ENVIRONMENTAL REQUIREMENTS
I GUESS IT'S THE RELIABILITY QUESTION THAT I HAVE HERE GIVEN THAT THIS IS A 10-YEAR CONTRACT AND THAT'S PRETTY REMARKABLE TO HAVE A SUPPLY OF FUEL SUPPLY THAT THE PRICE IS GUARANTEED OVER A 10-YEAR PERIOD GIVEN THAT THE VOLATILITY AND PLASTICITY OF CONVENTIONAL FUELS
IT'S HARD TO KNOW YEAR-TO-YEAR WHAT CONVENTIONAL FUELS ARE GOING TO BE
SO I JUST FIND IT REMARKABLE THAT WE HAVE A LOCK-IN GUARANTEED PRICE
IS THAT CORRECT? OR ARE THERE SOME ESCALATORS BUILT INTO IT? IT IS A GUARANTEED LOCKED IN FLAT RATE AND I CAN SPEAK BRIEFLY TO THAT DIFFERENCE BETWEEN COMMODITY FOSSIL PRICES AND RNG AND WHAT MAKES IT SO STRIKING AND THE ABILITY TO HAVE A 10-YEAR CONTRACT AND EVEN A 20-YEAR CONTRACT
TYPICALLY THE LARGEST SOURCES ARE FROM LANDFILLS, WHICH AS YOU'RE PROBABLY AWARE, MANY LANDFILLS HAVE 50 YEAR OR LONGER LIFE SPANS OF CONTINUING TO ACCEPT WASTE AND HACE THOSE CONTRACTS BAISCALLY LOCKED IN TO ACCEPT THAT WASTE FROM LARGE URBAN CENTERS
AND SO WHEN WE ARE BUYING THE RNG, THE PRICE IS REALLY REFLECTING THE CAPITAL COST THE, AMORTIZED CAPITAL COST OR THE DEBT SERVICE ON THAT CAPITAL INVESTMENT TO CLEAN UP THE GAS AND INJECT IT INTO THE PIPELINE PLUS THE OPERATIONAL COSTS
SO IT DOES NOT FLUCTUATE BASED ON THE SORT OF COMMODITY AND MARKETS AND GLOBAL TRADE BECAUSE IT'S REALLY REFLECTING THE PRICE OF ONE CAPITAL INVESTMENT AND AN OPERATIONAL COST THAT IS STEADY OVER TIME
COMMISSIONER FELLEMEN IS BACK THAT'S THE SECOND TIME I GOT KICKED OFF
I DON'T KNOW WHAT IT IS
IT'S NOT BEING INJECTED INTO SEATAC
THE RELIABILITY QUESTION IS THAT FUNGIBILE NATURE
AND JUST A FINER POINT ON THE COST BECAUSE IT IS A LARGE NUMBER OVER A 10-YEAR PERIOD
THE POINT BEING IT'S ONLY LESS THAN 1% THAT WOULD BE SPREAD ACROSS ALL THE AIRLINES WHICH IS ABOUT $1.7 MILLION A YEAR SPREAD ACROSS ALL THE AIRLINES
SO 23 MILLION IS A BIG NUMBER
IT BREAKS DOWN TO QUITE A BIT LESS THAN THAT WHEN YOU THINK ABOUT THE OVERALL OPERATIONS AND CERTAINLY AS WE SAW BANG FOR THE BUCK ON THE PRICE PER TON OF CARBON IT WAS TRULY COST-EFFECTIVE
SO I THANK YOU VERY MUCH AGAIN AND SEE THIS AS A CLEARLY A GREAT STEP FORWARD FOR US
OH AND ONE OTHER THING
YOU DID MENTION THAT THE CENTURY AGENDA WAS PASSED BACK IN 2014
WE DID AMEND THE CENTURY AGENDA TO ESTABLISH THE 2020 GOAL JUST IN THE PAST SEVERAL YEARS
OKAY, THANK YOU
ARE THERE ANY FURTHER QUESTIONS OR COMMENTS FROM COMMISSIONERS ON THIS ITEM? BEFORE WE CALL FOR A MOTION? WE WILL GO THROUGH EACH COMMISSIONER AND WE'LL START WITH COMMISSIONER BOWMAN
ANY ADDITIONAL QUESTIONS OR COMMENTS? I DO NOT
THANK YOU
COMMISSIONER CALKINS? NONE FOR ME EITHER
COMMISSIONER CHO? WAS THAT A NOTHING, COMMISSIONER CHO? YEA
GREAT
AND COMMISSIONER FELLEMAN? I HAVE NO FURTHER QUESTIONS BUT I'D LIKE TO MAKE A MOTION AND SUPPORT OF ITEM
WHATEVER THIS WAS
8A
COMMISSIONER FELLEMAN MOVES THE ADOPTION OF ITEM 8A
IS THERE SECOND? SECOND
IT'S BEEN MOVED AND SECONDED
CLERK, PLEASE CALL THE ROLL ON THE MOTION
OKAY, COMMISSIONER BOWMAN
AYE
COMMISSIONER CALKINS
AYE
COMMISSIONER CHO
AYE
COMMISSIONER FELLEMAN
AYE
COMMISSIONER STEINBREUCK
AYE
WITH FIVE AYES, THE ITEM CARRIES MOTION PASSES
THANK YOU AGAIN AND A GREAT WORK
WE'LL MOVE ON NOW TO ITEM 8B
NEXT ITEM 8B AUTHORIZATION TO EXECUTE INTERLOCAL AGREEMENTS WITH THE WASHINGTON STATE DEPARTMENT OF ECOLOGY AND WASHINGTON STATE DEPARTMENT OF NATURAL RESOURCES TO SUPPORT A 3-YEAR EVALUATION OF CARBON SEQUESTRATION, WATER TREATMENT IMPROVEMENT, AND ECOLOGICAL PRODUCTIVITY ASSOCIATED WITH THE SMITHCOVE BLUE CARBON PILOT PROJECT
COMMISSIONERS, THESE TWO INTERLOCAL AGREEMENTS WILL SUPPORT LONG-TERM EVALUATION OF IMPACTS OF THE SMITHCOVE BLUE CARBON PILOT PROJECT THROUGH DATA COLLECTION, ANALYSIS REPORTING, AND PUBLIC OUTREACH
PRESENTING ARE JOHN SLOAN AND SANDY KILROY
CLERK PLEASE UNMUTE THE PRESENTERS
PRESENTERS, PLEASE UNMUTE YOURSELVES
COMMISSIONERS WILL REMAIN MUTED UNTIL THE PRESENTATION IS COMPLETE
AT THAT TIME WE WILL CALL ANY COMMISSIONER TO ASK QUESTIONS AND OFFER COMMENTS
JOHN SLOAN
I BELIEVE SHOULD BE UNMUTED
I'M HAVING TROUBLE FINDING SANDY
SO GIVE ME A MOMENT
JOHN, ARE YOU ON? [CROSSTALK] OKAY GREAT
GOOD AFTERNOON, COMMISSIONERS AND EXECUTIVE DIRECTOR METRUCK
THIS IS A REQUEST FOR THE COMMISSION TO AUTHORIZE THE EXECUTIVE DIRECTOR TO SIGN INTERLOCAL AGREEMENTS WITH THE WASHINGTON STATE DEPARTMENTS OF NATURAL RESOURCES AND DEPARTMENT OF ECOLOGY, SUPPORT A A 3-YEAR MONITORING STUDY FOR THE SMITHCOVE BLUE CARBON PILOT PROJECT
NEXT SLIDE IN 2018, WE BEGAN A PILOT PROGRAM TO RESTORE AND ENHANCE KELP, EELGRASS, AND OLYMPIA OYSTER BEDS IN SMITHCOVE
WE HAD 3 GOALS AT THAT TIME
ONE WAS TO MAKE THE SITE MORE CARBON-RICH THROUGH THE ADDITION OF THESE FEATURES, 2 IS TO IMPROVE WATER QUALITY BY RAISING PH AND HELPING OFFSET LOCAL EFFECTS OF OCEAN ACIDIFICATION, AND 3 WAS TO MAKE THE SITE MORE PRODUCTIVE FOR FISH AND WILDLIFE, PARTICULARLY SALMON
TO SEE WHETHER WE'RE MEETING THESE GOALS, WE ASKED FOR AND RECEIVED $250,000 FROM THE COMMISSIONER'S ENERGY AND SUSTAINABILITY COMMITTEE FOR A MONITORING STUDY
THE STUDY WILL HELP US UNDERSTAND THE BENEFITS AND IMPROVE TECHNIQUES FOR OTHER PORT PROJECTS
NEXT SLIDE THE STUDY [INAUDIBLE] IN LARGE PART BY THE WASHINGTON STATE DEPARTMENT OF NATURAL RESOURCES
THE ILA WILL ALLOW THEM TO DEDICATE A PART-TIME POSITION TO THE PROJECT TO PERFORM THE MONITORING WORK AS WELL AS ENGAGE COMMUNITY MEMBERS AND TRIBES
THE SECOND ILA WITH THE DEPARTMENT OF ECOLOGY WILL ENLIST THE HELP OF DOCTOR MICA HOROWITZ WHO'S BEEN INVOLVED WITH THE PROJECT THE LAST COUPLE OF YEARS TO INTEGRATE THE SITE INTO HIS OCEAN ACIDIFICATION RESEARCH PROGRAM AT ECOLOGY
NEXT LINE FOR OUR PART OVER A THREE-YEAR PERIOD, WE'LL PROVIDE $163,500 TO DNR TO SUPPORT THE PART-TIME POSITION AND $36,500 TO ECOLOGY FOR DR HOROWITZ'S INVOLVEMENT
WE'LL CONTINUE TO COORDINATE THE PROJECT ACTIVITIES BETWEEN DNR AND ECOLOGY AS WELL AS OUR OTHER PARTNERS WHO INCLUDE THE PUGET SOUND RESTORATION FUND AS WELL AS COMMUNITY MEMBERS AND TRIBES AND GRADY ASSOCIATES, OUR CONSULTANT
ULTIMATELY THIS WORK WILL BE USED TO REFINE TECHNIQUES FOR OTHER PROJECTS ON PORT RESTORATION SITES
AND THE STUDY WILL ALSO PROVIDE VALUABLE INFORMATION ABOUT WHETHER OFTEN OVERLOOKED URBAN LOCATIONS LIKE SMITHCOVE CAN BE PART OF A MORE REGIONAL APPROACH TO RESPONDING TO OCEAN ACIDIFICATION, RESTORING HABITAT WHILE ALSO INCREASING CARBON STORAGE AS A CLIMATE MITIGATION STRATEGY
RESULTS WILL ALSO BE USED TO HELP BUILD A MODEL THAT WILL MORE PROPERLY VALUE THE PORT'S MARINE HABITATS ASSET S IN SUPPORT OF OUR MITIGATION BANKING PROGRAM
NEXT SLIDE
OUR SCHEDULE: WE'RE COMPLETING SUPPLEMENTAL KELP AND OYSTER INSTALLATIONS NOW AND AS SOON AS THE ILAS ARE SIGNED, WE'LL FINALIZE THE MONITORING PLAN AND KICK OFF THE STUDY IN EARNEST THIS SUMMER
MONITORING AND OTHER ACTIVITIES WILL GO ON FOR 3 YEARS DURING WHICH WE'LL PROVIDE UPDATES TO THE ENERGY AND SUSTAINABILITY COMMITTEE WITH A FINAL REPORT AT THE END
WE'LD LIKE TO THANK THE COMMISSION'S ENERGY AND SUSTAINABILITY COMMITTEE FOR PROVIDING THE FUNDING FOR THIS STUDY WHICH WILL GENERATE MEANINGFUL INFORMATION THAT'S HELPFUL NOT ONLY TO THE PORT BUT THE OTHER PUBLIC, PRIVATE, AND NONPROFIT ORGANIZATIONS IN THE REGION
THAT'S THE END OF SLIDES
I'D BE HAPPY TO TAKE ANY QUESTIONS
OKAY, LET'S START WITH COMMISSIONER QUESTIONS
COMMISSIONER BOWMAN
I HAVE NO QUESTIONS
COMMISSIONER CALKINS
NO QUESTIONS
COMMISSIONER CHO? NO QUESTIONS
AND COMMISSIONER FELLEMAN
JOHN I HAVE A COUPLE
THE COMBINATION OF BENEFITS HERE
I THINK YOU COULD FLUSH OUT A LITTLE BIT MORE
IN ADDITION TO THE PLANTING OF THE KELP AND THE EELGRASS, WE HAVE ABOUT 25 ACRES OF THAT AND YOU HAVE EFFORTS TO RESTORE THE OLYMPIA OYSTER, CREATING TEMPORARY HABITAT FOR THE FISH AS YOU MENTIONED, RESTORING OYSTERS AS WELL AS TESTING WHETHER THE CARBON CAN BE SEQUESTERED INTO THE SEDIMENTS AND REDUCING LOCALIZED OCEAN ACIDIFICATION
AS FAR AS I'M CONCERNED, AS FOUNDING CHAIR OF THE ENS COMMITTEE
THAT'S A LOT OF BANG FOR THE BUCK OF 250K
WHAT YOU DID TELL ME THOUGH WAS THAT THE ESTIMATE FOR THE GOAL FROM OTHER PROJECTS THAT THIS COULD RESULT IN ABOUT 14 METRIC TONS A YEAR OF CARBON BEING SEQUESTERED? IS THAT IT? I THINK IT'S 10 METRIC TONS WHEN WE SUCCESSFULLY RESTORE THE FULL 25 ACRES AND THAT WAS THE EQUIVALENT OF 1,400 GALLONS OF FUEL BURNED EVERY YEAR
THAT'S ONE OF THE THINGS WE WANT TO TEST THROUGH THE STUDY TO SEE IF THAT'S A VALID ESTIMATES BASED ON LITERATURE REVIEW FROM AROUND THE REGION
I WAS LOOKIMG AT THAT
IN COMPARISON, FOR EXAMPLE, WE'VE GOT TWO SOLAR PROJECTS GOING ON, WHICH I GUESS, BECAUSE WE HAVE A CLEAN ELECTRICAL GRID THAT ONLY ADDED ABOUT 2.8 MILLION METRIC TONS OF CARBON REDUCTION IN COMPARISON
SO I JUST THINK THIS IS, CUMULATIVELY, IT IS QUITE EXCITING
AND THEN THE COMPARISON, AGAIN ANOTHER COMPONENT THAT I THOUGHT WAS VERY INTERESTING THAT THIS IS ONE OF 6 SITES AROUND THE STATE AND WHY COLLABORATING WITH DNR AND ECOLOGY MAKES SO MUCH SENSE, AS WELL AS PUGET SOUND RESEARCH RESTORATION FUND IN THAT WE COULD LOOK AT THE BEING THE ONLY URBAN SITE IN THAT CONTEXT I TOUGHT WAS ANOTHER ADDED VALUE OF US BEING PART OF THIS BIGGER STUDY
AND THEN FINALLY, I THINK IT'S VERY ENCOURAGING THAT YOU'RE GETTING GOOD AT TRANSPLANTING KELP AND EELGRASS, WHICH IS A VITAL HABITAT THAT WOULD BE BENEFICIAL TO A LOT OF PLACES
HOPEFULLY SOMEDAY WE'LL BE GETTING INTO THE KELP AQUACULTURE BUSINESS OR KELP OTHER BUSINESSES BECAUSE THERE ARE SO MANY VALUES, ADDITIVES IN THE FOOD CHAIN AND JOBS IN THE WATER THAT ARE NOT POLLUTING
I SEE THIS AS A GREAT INCENTIVE AND INNOVATION GOING FORWARD
SO THANK YOU SO MUCH FOR THAT WORK
THANK YOU COMMISSIONER FELLEMAN
I HAVE A COUPLE OF QUESTIONS
FIRST OF ALL, THE FUNDING, I'M GUESSING DID NOT COME THROUGH THE COMMITTEE
IT CAME THROUGH THE COMMISSION AS AN ADOPTED BUDGET FUNDED PROJECT
IS THAT MORE ACCURATE? WE DON'T FUND PROJECTS THROUGH COMMITTEES SO I THINK THAT SHOULD BE CLARIFIED
PETER, BACK WHEN WE ESTABLISHED THE COMMITTEE FIVE YEARS AGO COURTNEY AND I, WE RECOMMENDED TO THE FULL COMMISSION PUTTING ASIDE A MILLION DOLLARS AND SO THAT WAS THE RISE FIVE YEARS AGO MY ONLY POINT OF CLARIFICATION IS THAT WE DO NOT FUND THINGS THROUGH COMMITTEE
WE MAKE RECOMMENDATIONS TO THE FULL COMMISSION AND THE COMMISSION ADOPTED THE BUDGET SO THIS JUST TO BE CLEAR, NOT TO MISLEAD THE PUBLIC IN THAT
JUST A CLARIFICATION
THE COMMISSION AUTHORIZED THE COMMITTEE TO HAVE THIS FUND THAT WE'RE SLOWLY STEWARDING
A SLUSH FUND
OKAY NEVER MIND [LAUGHTER] OKAY SO I WANTED TO ASK ABOUT THE REPLICABILITY OF THIS PROJECT
IT'S A PRETTY INTERESTING PROJECT I MIGHT SAY WITH MULTIPLE POTENTIAL BENEFITS AND OBVIOUSLY THE STUDY IS GOING TO BETTER EVALUATE THE OUTCOMES HERE AND SO IT'S REALLY QUITE AN INTERESTING PROJECT I THINK
I'M ASKING OUR STAFF THIS QUESTION, WHAT IS THE REPLICABILITY OF A BLUE CARBON SEQUESTRATION PROJECT LIKE THIS MAYBE EVEN ON A LARGER SCALE
SCALE UP AT OTHER SITES
YEAH, I CAN ADDRESS THAT
WE HAVE A COUPLE OF MARINE AREA PROJECTS THAT ARE IN PLANNING RIGHT NOW
THE MOST IMMEDIATE ONE IS IT TERMINAL 25 THAT WILL BE PART OF OUR MITIGATION BANKING PROGRAM
AND BECAUSE IT'S A SALTWATER SITE, WHAT WE LEARNED AT SMITHCOVE ON HOW TO GROW EELGRASS AND KELP CAN BE REPLICATED ON THAT PROJECT SITE
AND BECAUSE THIS WORK WILL ALSO HELP REFINE THE MODEL THAT THEY USE TO VALUE MARINE HABITAT IT'S LIKELY WE'LL GET MORE CREDITS OR VALUE OUT OF THAT PROJECT BECAUSE OF WHAT WE'RE LEARNING AT SMITHCOVE
AS FAR AS REPLICABILITY AT A BIGGER SCALE
WE DON'T CONTROL HUGE SWATHS OF TIDAL LANDS
WE HAVE A LARGE AREA AT TERMINAL 5 WHERE I EXPECT WE COULD DO SOME KELP AND EELGRASS WORK THERE IN THE FUTURE AND WE HAVE A LONG STRETCH OF SHORELINE ALONG CENTENNIAL PARK
THAT'S IDEALLY SUITED FOR KELP CULTIVATION AT LEAST AT A SMALLER SCALE
FASCINATING
WELL I WAS ALSO THINKING THAT THERE MAY BE OPPORTUNITIES HERE, AT SOME FUTURE, TIME FOR PARTNERSHIPS WITH PRIVATE SECTOR, INDUSTRY, TO EXPAND SHELLFISH FARMING TO GROW FLORA THAT MIGHT HAVE OTHER USES AS COMMISSIONER FELLEMAN SAID, OTHER VALUABLE USES OF KELP AND ALSO SALMON RECOVERY TO RESTORE THE NEARSHORE ENVIRONMENT FOR JUVENILE FISH MIGRATION
ALL OF THOSE THINGS I THINK WOULD BE POTENTIAL OPPORTUNITIES
I DON'T KNOW WHAT YOUR THOUGHTS WOULD BE ABOUT THAT JOHN, IN THAT REGARD
I THINK THAT'S ONE OF THE EXCITING THINGS ABOUT THIS PROJECT IS IT CREATES A PARTNERSHIP WITH DNR WHO REGULATES AQUACULTURE IN PUGET SOUND AND ALSO CREATES A PARTNERSHIP OR EXTENDS A PARTNERSHIP WITH THE PUGET SOUND RESTORATION FUND WHICH IS DOING WORK WITH TAYLOR SHELLFISH AND A BUNCH OF OTHERS IN DOING EXPERIMENTS ON KELP AQUACULTURE OUT IN HOOD CANAL SO BY PARTICIPATING IN THESE PARTNERSHIPS, I REALLY DO THINK IT AVAILS US THE OPPORTUNITIES IN THE FUTURE
YEAH, GREA.T LASTLY AND THIS IS A PASSION OF COMMISSIONER CALKINS', IT WOULD SEEM TO ME THERE WOULD BE SOME GREAT OPPORTUNITIES FOR EXPERIENTIAL LEARNING AND STUDENT INVOLVEMENT IN THE RESEARCH SIDE OF IT
HAS THAT BEEN CONSIDERED? IT HAS
THE DNR PART-TIME POSITION WILL ALSO BE TASKED WITH DEVELOPING A CLIMATE CHANGE CURRICULUM FOR DNR
THIS IS ONE OF THE THINGS THAT THE GOVERNOR ASKED THEM TO DO AND THEY'RE GOING TO USE OUR PROJECT AND OUR FUNDING TO HELP SUPPORT THAT WHICH MEANS WE CAN BRING IN THE DUWAMISH VALLEY YOUTH CORPS, WE CAN BRING IN FOLKS WHO LIVE IN MAGNOLIA, COMMUNITY-BASED SCIENCE PARTICIPANTS, TRIBES, AND OTHERS
THAT'S DEFINITELY GOING TO BE PART OF THE PLAN
EXCELLENT
ALL GOOD
I HAVE NO FURTHER QUESTIONS OR COMMENTS
COMMISSIONERS? I MIGHT CHIME IN HERE MOMENTARILY AND THANK YOU FOR FOR MENTIONING THE QUESTION ABOUT STUDENT INVOLVEMENT, IT WAS SOMETHING I HAD ASKED ABOUT IN A RECENT BRIEFING
I'M ACTUALLY GOING TO RECUSE MYSELF FROM THIS VOTE BECAUSE IN READING THROUGH THE BRIEFINGS, I WAS REMINDED THAT DR HOROWITZ WAS MENTIONED EARLIER AS INVOLVED IN THIS PROJECT AND HE IS A FRIEND OF MINE
SO I AM GOING TO RECUSE MYSELF FROM THE VOTE
OKAY, VERY GOOD
I THINK WE'RE READY TO CALL FOR A MOTION TO ADOPT
IS THERE A MOTION? IT'S BEEN MOVED, IS THERE A SECOND? DO I HEAR A SECOND? SECOND CLERK PLEASE CALL THE ROLL ON THE MOTION SORRY I WAS MUTED
COMMISSIONER BOWMAN
AYE COMMISSIONER CALKINS
RECUSING
OKAY THAT'S AN ABSTENTION
YOU'D HAVE TO ASK LEGAL ON THAT
I THINK IT'S DIFFERENT
COMMISSIONER CHO
AYE
COMMISSIONER FELLEMAN
AYE COMMISSIONER STEINBREUCK
AYE
THE MOTION IS ADOPTED AND THE MOTION PASSES AND GREAT WORK
WE'LL LOOK FORWARD TO THE RESULTS DOWN THE ROAD
COMMISSIONER STEINBREUCK, CAN I HAVE A QUICK STATEMENT HERE? I JUST THINK THESE TWO PROJECTS TOGETHER REALLY ARE A FANTASTIC OPPORTUNITY TO POINT OUT THAT WE'RE COMING TO THE 50TH ANNIVERSARY OF EARTH DAY NEXT THURSDAY AND A GREAT TIME TO REFLECT ON ALL THAT WE TRY TO DO TO REDUCE OUR CARBON FOOTPRINT AND THIS HAS BEEN THE ENERGY AND SUSTAINABILITY'S PRIMARY GOAL BUT WE REALLY FOCUSED ON, THERE'S SEVERAL PUBLIC COMMENTS WITH REGARDS TO THIS, WE'VE BEEN FOCUSING ON SCOPE 1 AND SCOPE 2 IMPACTS, THINGS WE HAVE DIRECT CONTROL OVER AND THE FUELS THAT WE PURCHASE
WE ALSO DO OUR PART TO TRY TO HELP OUR TENANTS REDUCE THEIR FOOTPRINT WHETHER IT BE SHORE POWER FOR THE MARITIME, PRECONDITION AIR AND ELECTRIFICATION FOR THE AIRLINES
AND SO I JUST THINK THAT THESE ARE IMPORTANT THINGS TO RECOGNIZE THAT WE'RE TRYING TO DO
SIMILARLY WITH THE SOLAR PROJECTS
ONE OF THE THINGS I JUST READ IN ATLANTIC MAGAZINE THE MARCH ISSUE, THEY HAVE THIS ARTICLE CALLED IN PRAISE OF HERD MENTALITY AND IT DEALS WITH HOW THE HUMAN INSTINCT CAN CONFORM TO MEET THE CHALLENGES OF THE CLIMATE CRISIS AND IT MIGHT SOUND CONTRADICTORY
BUT ONE OF THE THINGS THEY POINT OUT IS THAT WHEN PEOPLE PUT UP SOLAR CELLS IN NEIGHBORHOODS, IT'S MORE LIKELY THAT OTHER SOLAR CELLS WILL POP UP BECAUSE PEOPLE WANT TO BE A PART OF THE SAME THING
SO I'M HOPING PART OF WHAT WE'RE DOING HERE IS TO SERVE AS A ROLE MODEL TO MAGNIFY WORK THAT'S BEING DONE AND I APPRECIATE SO MUCH OF THE STAFF'S WORK TO MAKE IT POSSIBLE OKAY THANK YOU COMMISSIONER FELLEMAN
AGENDA ITEM 9 PRESENTATIONS REPORTS AND BRIEFINGS .WE HAVE REMOVED ITEM NUMBER 9 A FROM THE AGENDA SO WE WILL TURN NOW TO 9B ITEM 9B IS COVID-19: FEDERAL CARES ACT RELIEF AND UPCOMING RECOVERY PROPOSALS
COMMISSIONERS, THIS BRIEFING WILL PROVIDE YOU AN OVERVIEW OF THE FEDERAL CORONAVIRUS AID RELIEF AND ECONOMIC SECURITY ACT, THE CARES ACT, SIGNED BY THE PRESIDENT ON MARCH 27TH AND ITS IMPACT ON PORT OPERATIONS
PRESENTING FOR THE PORT ARE PEIRCE EDWARDS AND DAVE MCFADDEN
I THINK OTHER PRESENTERS AS WELL INCLUDING ERIC FITCH, RYAN MCFARLAND, AND I'M NOT SURE..
LANCE LITTLE, [INAUDIBLE] AND DON HUNTER
SO WITH THAT I'LL TURN IT TO-- OKAY AND LET ME JUST ADD THAT I HAVE SPECIFICALLY ASKED FOR THIS PRESENTATION TO CHECK THE STATUS OF THE FEDERAL STIMULUS AND THE RELIEF EFFORTS THAT WE HAVE UNDERTAKEN AT THE AIRPORT AND HOW WE MIGHT GAIN A BETTER UNDERSTANDING OF THE COMPLEXITIES OF THIS AND HOW WE CAN BEST DELIVER ON THOSE EFFORTS
SO THANK YOU TO OUR STAFF FOR PUTTING THIS TOGETHER
THANK YOU COMMISSIONER STEINBREUCK AND EXECUTIVE DIRECTOR METRUCK
THIS IS ERIC FITCH STATE GOVERNMENT RELATIONS MANAGER FOR THE PORT
I'LL BE PRESENTING ALONG WITH MY COLLEAGUE BRIAN MCLAREN WHO IS OUR LEAD ON FEDERAL GOVERNMENT AFFAIRS FROM THE MARITIME SIDE
WE ARE VERY PLEASED TO APPEAR BEFORE YOU TO PROVIDE A REVIEW OF AND LOOK FORWARD TO VARIOUS AVENUES OF FEDERAL COVID-19 RELIEF
WE'LL BEGIN WITH A BRIEF RECAP OF THE CARES ACT, THE THIRD RELIEF PACKAGE THAT WAS ADOPTED BY CONGRESS LATE LAST MONTH
WE WILL ASK SOME OF THE PORT'S DIVISION DIRECTORS TO SPEAK DIRECTLY TO HOW THAT LEGISLATION IS BEING IMPLEMENTED ACROSS THEIR OPERATIONS, HOW IT AFFECTS OUR TENANTS AND OUR WORKFORCE AND BEFORE CONCLUDING WE WILL LOOK AHEAD TO WHAT WE CAN EXPECT FROM THE NET FEDERAL GOVERNMENT BY WAY OF A NEXT ROUND OF RELIEF AND WE WILL ALSO SHARE SOME OF THE PORT'S DEVELOPING PRIORITIES FOR THAT UPCOMING RELIEF AND RECOVERY PARTNERSHIP WITH THE FEDERAL GOVERNMENT
SO WITH THAT I WOULD LIKE TO TURN IT OVER TO OUR FEDERAL AFFAIRS MANAGER, RYAN MCFARLAND TO INTRODUCE YOU ALL TO THE CARES ACT
RYAN
WE CAN GO TO THE NEXT SLIDE AS WELL
AND RYAN YOU SHOULD BE UNMUTED BUT I CAN SEND THAT PROMPT AGAIN IF NEEDED
ALL RIGHT
HOW ABOUT NOW? OKAY, CAN YOU HEAR ME LAUREN? WE CAN YES, GREAT
COMMISSIONERS
HELLO, STEVE METRUCK
I'M RYAN MCFARLAND FEDERAL GOVERNMENT RELATIONS MANAGER FOR THE PORT
THE CARES ACT WAS PASSED BY CONGRESS AND SIGNED INTO LAW ON MARCH 27TH AT $2.2 TRILLION
IT'S THE LARGEST RELIEF PACKAGE IN US HISTORY
IT WAS THE 3RD COVID-19 RELIEF PACKAGE THAT PASSED IN THE MONTH OF MARCH
THE 1ST BILL FOCUSED ON THE HEALTH CARE SYSTEM EPIDEMIC RESPONSE, THE 2ND FOCUSED ON RELIEF FOR I NDIVIDUALS AND WORKERS INCLUDING SICK LEAVE, UNEMPLOYMENT, INSURANCE, MEDICAID AND FOOD ASSISTANCE PROGRAMS SO REALLY THE FIRST THREE RELIEF PACKAGES HAVE COVERED REALLY JUST FOCUSED ON MITIGATING THE IMMEDIATE IMPACTS OF THE EPIDEMIC BUT CONGRESS IS EXPECTED TO TAKE ADDITIONAL ACTION IN THE COMING MONTHS TO PROVIDE FURTHER ASSISTANCE TO THE ECONOMY
PROBABLY CERTAIN DISTRESSED SECTORS OF THE ECONOMY AS WELL AS LONGER TERM INVESTMENTS TO STIMULATE ECONOMIC RECOVERY
THAT COULD INCLUDE INFRASTRUCTURE
THERE WERE REPORTS OUT OF DC SAYING STIMULUS MEASURES INCLUDING INFRASTRUCTURE COULD HAPPEN THIS MONTH AS PART OF THE NEXT COVID-19 BILL NUMBER 4, BUT WE'RE HEARING NOW THAT'S NOT LIKELY TO HAPPEN THIS MONTH
IN A FEW MINUTES WE'LL TALK MORE ABOUT WHAT STEPS ARE LIKELY TO COME OUT OF DC IN THE COMING WEEKS AND MONTHS
NEXT SLIDE, PLEASE? SO FIRST WE WANT TO TALK ABOUT WHAT WAS IN THE CARES ACT A HEADLINE OF THE CARES ACT WAS THE DIRECT PAYMENTS TO INDIVIDUALS
THERE ARE PAYMENTS IN THE AMOUNT OF $1,200 TO INDIVIDUALS WITH ANNUAL INCOME BELOW 75 THOUSAND DOLLARS WITH INDIVIDUALS MAKING BETWEEN 75 AND $100,000 ELIGIBLE FOR A SMALLER PORTION OF THAT AMOUNT
THERE'S ALSO A SIGNIFICANT EXPANSION OF BOTH LENGTH AND AMOUNT OF UNEMPLOYMENT INSURANCE AND BENEFITS INCLUDING EXPANDING IT TO THE SELF-EMPLOYED AND A $600 INCREASE PER WEEK ON TOP OF REGULAR BENEFITS
SMALL BUSINESS FOCUS
THE SECOND BULLET THERE
THERE'S $377 BILLION FOR THE SMALL BUSINESS ADMINISTRATION TO SUPPORT SMALL BUSINESSES IN THEIR WORKFORCE
THE KEY PIECE OF THAT IS THE $350 BILLION PAYCHECK PROTECTION PROGRAM
A FEW OF MY COLLEAGUES ARE GOING TO TALK ABOUT THAT
MORE LATER, I'LL JUST SAY FOR NOW THAT THE POINT OF IT IS TO PROVIDE LOANS TO BUSINESSES THAT MAINTAIN THEIR PAYROLLS AND CERTAIN PORTIONS OF THOSE LOANS ARE FORGIVABLE EFFECTIVELY TURNING THEM INTO GRANTS
THE BILL ALSO INCLUDES $454 BILLION THROUGH THE TREASURY DEPARTMENT TO SUPPORT BUSINESSES, STATES, TRIBES, AND MUNICIPALITIES
MORE ON THAT IN A SECOND
AND THEN A CENTERPIECE OF THE BIL L FOR US IS THE$ 10 BILLION IN DIRECT ASSISTANCE FOR AIRPORTS
AND LANCE IS GOING TO COVER THAT ONE IN A SECOND
FINALLY
I WILL FLAG SOME ADDITIONAL ITEMS OF INTEREST, SOME PROVISIONS THAT ARE IMPORTANT TO SOME OF OUR KEY STAKEHOLDERS INCLUDING THE FISHING AND TOURISM INDUSTRIES AND I'M GOING TO ASK ERIC FITCH NOW TO GO THROUGH THOSE A LITTLE BIT MORE IN DETAIL
THANKS, RYAN, AND LAUREN
YOU CAN GO TO THE NEXT SLIDE AND I WILL PRIMARILY INTRODUCE LANCE FROM THE AVIATION DIVISION AND DAVID MCFADDEN FROM AN ECONOMIC DEVELOPMENT DIVISION TO SPEAK ABOUT AIRPORT ASSISTANCE AND WHAT OUR TENANTS CAN TAKE ADVANTAGE OF AS FAR AS SMALL BUSINESS ASSISTANCE
RYAN MENTIONED THE AIRPORT SUPPORT WAS A KEY COMPONENT
WE DID JUST GET SOME NEWS ABOUT THE LEVEL OF FUNDING THAT SEATAC CAN EXPECT AND IT IS WORTH NOTING THAT THESE PACKAGES TYPICALLY DEVELOP RAPIDLY WITH A LOT OF INFORMATION COMING OUT WHILE THEY'RE DEVELOPED
AS CARES WAS COMING TOGETHER, THERE WAS SPECULATION THAT IT WOULD INCLUDE A SPECIFIC CHUNK OF FUNDING OR ADR TENANTS SPECIFICALLY, HOWEVER, THE FINAL PACKAGE DID NOT INCLUDE THAT CHUNK OF FUNDING
A NOTE ABOUT THE AID TO BUSINESSES AND GOVERNMENTS INCLUDING COURT DISTRICTS
THIS WILL BE PRIMARILY DISTRIBUTED THROUGH A TREASURY EXCHANGE STABILIZATION FUND TO PROVIDE FUNDING LIQUIDITY FOR LOANS AND OTHER FUNDING MECHANISMS, BUT I WANT TO GIVE A HEAD NOD HERE TO JEFF MARQUIS AND RYAN MCFARLAND
IT INITIALLY APPEARED THAT THIS WOULD NOT INCLUDE PORT DISTRICTS
HOWEVER AS THE BILL DEVELOPED THE DEFINITION OF LOCAL GOVERNMENTS THAT ARE ELIGIBLE TO TAKE ADVANTAGE OF THIS PROGRAM WAS AMENDED TO ENSURE THAT PORT DISTRICTS COULD TAKE ADVANTAGE OF IT
AND HERE ON THE SLIDE YOU SEE THE THREE PRIMARY SMALL BUSINESS RESTORATION PROGRAMS THAT DAVE AND HIS TEAM ARE HELPING ENSURE ARE BEING TAKEN ADVANTAGE OF BY OUR TENANTS
I WILL LEAVE THAT FOR DAVE TO DISCUSS
I WANTED TO LIST THOSE HERE AS ONE OF THE PRIMARY COMPONENTS THAT WOULD BE RELEVANT TO OUR OPERATIONS
THEN ON FISHING AND TOURISM INDUSTRY RELIEF WHICH RYAN MENTIONED JUST TO NOTE THAT AS WE WERE DIGGING INTO THE CARES ACT TO UNDERTAND WHAT IT MEANT FOR OUR OPERATIONS OUR FACILITIES AND OUR WORKERS WE ALSO WANTED TO CONDUCT OUTREACH TO KEY STAKEHOLDERS ABOUT THE RELIEF MECHANISMS THAT THEY MAY TAKE ADVANTAGE OF IN THE PACKAGE
PARTLY JUST TO UNDERSTAND HOW THEY'RE GETTING THROUGH THIS CRISIS BUT ALSO TO BETTER UNDERSTAND WHAT WE MIGHT JOINTLY ADVOCATE FOR IN THE NEXT PACKAGE
SO FOR EXAMPLE WE KNOW THAT THE CARES ACT INCLUDED 300 MILLION FOR THE DIRECT PAYMENTS TO THE COMMERCIAL FISHING INDUSTRY
WE UNDERSTAND FROM CONVERSATIONS WITH REGIONAL STAKEHOLDERS THAT ELIGIBLE FISHERIES IN OUR REGION ARE EXPECTED TO RECEIVE A DECENT AMOUNT OF THAT FUNDING, HOWEVER WE ALSO KNOW THAT THE INDUSTRY NATIONALLY HAD REQUESTED 1.5 BILLION IN THOSE DIRECT PAYMENTS IN ADDITION TO A COUPLE OF OTHER MECHANISMS THAT WOULD PROVIDE FEDERAL ASSISTANCE FOR FISHERIES
SO AS WE GO INTO THE NEXT PACKAGE, BECAUSE OF THE IMPORTANCE OF THE FISHING INDUSTRY TO OUR REGIONAL ECONOMY AND TO THE PORT, WE WILL JOIN THEM IN ADVOCATING FOR ADDITIONAL SUPPORT
SIMILARLY THERE IS NO EXPLICIT TOURISM SECTION WITHIN THE CARES ACT
HOWEVER, WE UNDERSTAND FROM OUR PARTNERS AT US TRAVEL THAT THERE'S MUCH IN THERE THAT THEIR MEMBERSMAY TAKE ADVANTAGE OF SPECIFICALLY THE SMALL BUSINESS PROVISIONS
HOWEVER THERE WILL THERE WILL BE SOME MORE EXPLICIT ADVOCACY FROM US TRAVEL AND OTHERS GOING INTO THE NEXT PACKAGE AND WE EXPECT TO JOIN THEM
WE KNOW THE WASHINGTON TOURISM ALLIANCE LOCALLY IS ADVOCATING DIRECTLY TO GOVERNOR INSLEE AND TO THE STATE LEGISLATURE FOR A RELIEF PACKAGES
COMMISSIONERS BOWMAN AND FELLEMAN HAVE BEEN INVOLVED IN WTA WORK AND OUR STAFF AND ECONOMIC DEVELOPMENT DIVISION IS VERY INVOLVED IN FEDERAL AND STATE EFFORTS SO WE WILL TRACK THOSE CLOSELY AND WE WILL JOIN IN OUR ADVOCACY
THERE WAS AN ADDITIONAL ITEM OF INTEREST IN THE CARES ACT THAT I WANTED TO NOTE BEFORE HANDING OFF TO LANCE TO DISCUSS AVIATION
I WANTED TO NOTE THAT THE HARBOR MAINTENANCE TRUST FUND WAS INCLUDED FOR FULL UTILIZATION IN THE CARES ACT
THAT IS CONSISTENT WITH THE STRATEGY THAT THE AMERICAN ASSOCIATION OF PORT AUTHORITIES HAS BEEN PURSUING WHICH WE'VE BEEN SUPPORTING BUT IT REQUIRES THE OTHER HALF OF THAT ACTION, WHICH IS THE DONOR PORT PROVISIONS THAT WE WILL CONTINUE TO ADVOCATE FOR AS CONGRESS LOOKS AT A WATER RESOURCES DEVELOPMENT ACT BILL LATER THIS YEAR
SO WITH THAT I WILL HAND IT OFF TO LANCE LITTLE OUR MANAGING DIRECTOR OF OUR AVIATION DIVISION TO TALK MORE ABOUT THE AVIATION PROVISIONS IN THE CARES ACT
AND LAUREN YOU COULD ADVANCE THE SLIDE FOR LANCE AS WELL
AND LANCE SHOULD BE UNMUTED
OKAY, THANK YOU, LAUREN
THANK YOU ERIC
BEFORE GOING INTO THIS FIGHT
I THINK IT'S APPROPRIATE FOR ME TO START WITH SOME THANK YOUS BECAUSE IN THE BEGINNING, EVEN THOUGH WE ENDED UP WITH $10 BILLION IN GRANTS AS PART OF THIS CARES PACKAGE, IN THE BEGINNING THERE WAS NOTHING IN THE PACKAGE FOR AIRPORTS AND IT JUST DIDN'T HAPPEN BY CHANCE
IT TOOK A LOT OF DELIBERATE EFFORTS TO MAKE THIS HAPPEN
SO I WANT TO START BY THANKING STEVE AND THE COMMISSION FOR YOUR SUPPORT AND ASSISTANCE DURING THIS TIME
WE ALSO THANK OUR CONGRESSIONAL DELEGATION SENATOR CANTWELL, SENATOR MURRAY'S OFFICE ON THEIR STAFF AND ALL THE ENTIRE CONGRESSIONAL DELEGATIONS, ACI, AIRPORTS COUNCIL INTERNATIONAL, TRIPLE AE, AMERICAN ASSOCIATION OF AIRPORT EXECUTIVES, AMAC, AIRPORT MINORITY ADVISOR CONSOLE THE AIRPORT DIRECTORS WHO BRAVED TRAVELING TO DC IN THE MIDST OF THIS PANDEMIC TO LOBBY THE ADMINISTRATION TO ENSURE THAT WE HAD SOMETHING IN THIS PACKET FOR AIRPORTS, AND OF COURSE JEFF MARQUIS AND HIS TEAM AND PORT STAFF HERE FOR ALL THE WORK THAT EVERYONE DID TO ENSURE THAT WE WERE INCLUDED IN THE PACKAGE AND THAT NOT JUST SEA AIRPORT, BUT ALL AIRPORTS IN THE U.S
BENEFITED FROM THIS
SO WITH THAT BEING SAID, THERE'S A FUND
THE $10 BILLION IS DIVIDED INTO FOUR GROUPS, AS YOU CAN SEE ON THE SCREEN
$7.4 BILLION IS FOR USE AT THE AIRPORT
FIFTY PERCENT OF THAT $7.4 BILLION IS ALLOCATED PER THE 2018 INPLANEMENTS
THAT MEANS THE NUMBER OF PEOPLE BOARDING AN AIRPLANE HERE AT SEA AND THAT IS AS A PERCENTAGE OF TOTAL 2018 INPLANEMENTS FOR ALL COMMERCIAL SERVICE AIRPORTS
AND THERE'S 25% ALLOCATED PER 2018 DEBT SERVICE
AND AGAIN, THAT'S AS A PERCENTAGE OF THE COMBINED DEBT SERVICE FOR ALL COMMERCIAL SERVICE AIRPORTS
AND THEN THE REAL TRICKY PART WAS THAT 25% THAT WAS ALLOCATED BASED ON THE RATIO OF UNRESTRICTED RESERVES TO DEBT SERVICE
NO AIRPORT KNEW HOW TO CALCULATE THAT
WE HAD A BRIEFING WITH THE DEPARTMENT OF TRANSPORTATION AND THE FAA THIS MORNING THAT CLARIFIED THAT CALCULATION AND ACTUALLY REFERENCED US THE LINKS TO SEE EXAMPLES
AND BY NOW YOU HAVE HEARD COMMISSIONERS THAT OUR ALLOCATION IS GOING TO BE APPROXIMATELY $192 MILLION
SO SOMEBODY HAS FIGURED OUT HOW THAT CALCULATION IS DONE
MY UNDERSTANDING IS IF YOU HAVE A HIGH RATIO OF CASH ON HAND TO DEBT SERVICE, THEN YOU WILL BE ALLOCATED MORE
SO WE JUST GOT THE INFORMATION, BUT I KNOW BORGEN AND THE TEAM IS WORKING AT IT
THE SECOND GROUP IS $2 BILLION ALLOCATED PER REGULAR AIP PROCESS, OR AIRPORT IMPROVEMENT PROGRAM, PROCESS AND THAT BASICALLY TAKES INTO CONSIDERATION THE AMOUNT OF INPLANEMENTS THAT YOU HAVE AT AN AIRPORT AS WELL AS THE AMOUNT OF CARGO THAT GOES THROUGH AN AIRPORT
THERE'S TYPICALLY RESTRICTIONS ASSOCIATED WITH HOW THAT MONEY IS ALLOCATED, BUT THESE RESTRICTIONS ARE LIFTED FOR THIS CARES ACT
SO FOR EXAMPLE, THERE WAS A LIMIT OF EITHER 22 OR 26 MILLION DOLLARS THAT AIRPORTS COULD GET BASED ON THE AMOUNT OF MONEY THAT WAS APPROPRIATED IN TOTAL
THAT HAS BEEN LIFTED
THERE WAS ALSO RESTRICTION BASED ON GIVE BACK
YOU'D HAVE TO GIVE BACK A CERTAIN AMOUNT IF YOU ARE ALSO COLLECTING EITHER THREE DOLLARS OR FOUR DOLLARS AND FIFTY CENTS PFC'S YOU'D HAVE TO GIVE BACK EITHER 50% OF THE AMOUNT ALLOCATED TO YOU OR 75% OF THE AMOUNT ALLOCATED TO USE THAT HAS BEEN LIFTED AS WELL
THE THIRD GROUP IS $500 MILLION ALLOCATED FOR FEDERAL SHARE OF GRANTS
SO TYPICALLY WE WOULD HAVE TO FIND A LOCAL MATCHING SHARE FOR GRANTS ALLOCATED TO US FOR 2020
THERE'S GOING TO BE AN AMOUNT ALLOCATED FROM THAT 500 MILLION THAT WILL BRING THE FEDERAL SHARE UP TO A HUNDRED PERCENT
THEREFORE
WE WILL NOT HAVE TO FIND A LOCAL MATCHING SHARE
AND THEN THERE'S A HUNDRED MILLION ALLOCATED TO GENERAL AVIATION AIRPORTS
NEXT SLIDE, PLEASE
THANK YOU
SO AGAIN, THE ALLOWABLE USES
WE CAN USE IT FOR O&M OPERATING AND MAINTENANCE COSTS WHICH INCLUDES PAYROLL, BRINGING DOWN OUR DEBT SERVICE
WE CAN ALSO USE IT FOR CAPITAL PROJECTS BUT IN ORDER TO USE IT FOR CAPITAL PROJECTS THERE'S ADDITIONAL APPROVAL THAT WE'LL HAVE TO GET FROM THE FAA
AND OF COURSE THERE ARE SOME RESTRICTIONS
AS YOU CAN SEE ON THE SLIDES HERE, WE MAY NOT USE IT FOR ANY PURPOSE NOT DIRECTLY RELATED TO AIRPORTS AND WE CAN ONLY USE IT FOR PURPOSES FOR WHICH AIRPORT REVENUES MAY LAWFULLY BE USED
THERE'S ALSO A RESTRICTION IN TERMS OF WE'LL HAVE TO MAINTAIN 90% OF OUR STAFF THROUGH DECEMBER 31ST OF THIS YEAR AFTER MAKING ADJUSTMENTS FOR RETIREMENT, RESIGNATION ETC
HOWEVER, THERE IS A HARDSHIP WAIVER THAT YOU CAN SEE FROM THE SECRETARY OF TRANSPORTATION, IF SO REQUIRED
NEXT SLIDE
ON THE AIRLINE SIDE AND WE HAVEN'T DIVED INTO A LOT OF THE DETAILS ON THE AIRLINE SIDE YET BUT WE THOUGHT IT WOULD BE APPROPRIATE FOR US TO GIVE SOME HIGH-LEVEL INFORMATION AND WHAT'S HAPPENING ON THE AIRLINE SIDE
SO THE AIRLINES HAD $61 BILLION DOLLARS INCLUDED IN THE CARES PACKAGE FOR AIRLINES, $25 BILLION FOR PASSENGER AIRLINES
$4 BILLION FOR CARGO AIRLINES AND 3 3 BILLION FOR CONTRACTORS
PEOPLE DOING GROWN SERVICE OR CLEAN AIR PLANES ETC
THOSE ARE IN THE FORM OF GRANTS
AND THEN LOANS IN THE AMOUNT OF 25 MILLION FOR PASSENGER AIR CARRIERS AND 4 BILLION FOR THE CARGO AIR CARRIERS AS WELL NEXT SLIDE
SO JUST LIKE THE AIRPORT, THE AIRLINES ALSO HAVE SOME RESTRICTIONS
AGAIN, HAVEN'T GONE INTO THE DETAIL OF THOSE BUT OUR UNDERSTANDING IS BEFORE YOU CAN TAKE ADVANTAGE AS AN AIRLINE OF A LOAN, YOU HAVE TO EXHAUST COMMERCIALLY AVAILABLE LOANS FIRST BEFORE TAKING ADVANTAGE OF THE THE LOANS THAT ARE AVAILABLE
SO FAR OUR UNDERSTANDING IS MOST AIRLINES WILL APPLY OR TAKE ADVANTAGE OF A GRANTS
WE ARE NOT SURE IF ANY OF THE AIRLINE S WILL TAKE ADVANTAGE OF THE LOANS
AND AS YOU CAN SEE, THERE ARE RESTRICTIONS WHETHER ITS PROHIBITION ON STOCK BUYBACK, PROBATION ON DIVIDEND PAYMENTS, OR COMPENSATION LIMITATION TO EXECUTIVE
SO T HESE LOANS COME WITH RESTRICTIONS
I THINK THAT'S MY LAST SLIDE
I'LL HAND IT OVER TO RYAN
AM I ON, LAUREN? YES YOU ARE
OKAY
SO IS RYAN AND ERIC MENTIONED THE KEY PART OF THE CARES ACT INCLUDED TWO NEW LOAN PROGRAMS FOR IMPACTED SMALL BUSINESSES: PAYCHECK PROTECTION PROGRAM AND THE ECONOMIC INJURY DISASTER LOAN PROGRAM
FIRST, A PAYCHECK PROTECTION PROGRAM PROVIDES FUNDING TO PAY UP TO EIGHT WEEKS OF PAYROLL COSTS INCLUDING BENEFITS AND TAXES AND YOU CAN ALSO COVER WITH THOSE PROCEEDS UTILITIES AND RENT
ALL OR PORTIONS OF TH E LOAN WILL BE FORGIVEN IF THE COMPANY MEETS CERTAIN CONDITIONS
THIS PROGRAM'S REALLY BROADLY AVAILABLE TO EVERYBODY INCLUDING NONPROFITS, TRIBAL BUSINESS CONCERNS, SELF-EMPLOYED INDIVIDUALS, SMALL BUSINESSES, INDEPENDENT CONTRACTORS
THE KEY IS YOU'VE GOT TO HAVE LESS THAN 500 EMPLOYEES AND MOST IMPORTANTLY THIS IS THE PROGRAM THAT YOU'RE READING ABOUT THAT'S BEEN FUNDED THROUGH BANKS AND LENDING INSTITUTIONS
THE THROUGH THE SMALL BUSINESS ADMINISTRATION
IT REALLY ECONOMIC INJURY DISASTER LOAN PROGRAM IS FUNDED DIRECTLY COVERS A BROADER RANGE OF BUSINESS NEEDS INCLUDING PAYROLL BUT ALSO INCREASED PRODUCTION COSTS DUE TO SUPPLY CHAIN DISRUPTIONS, BUSINESS OBLIGATIONS, DEBTS, AND MORTGAGE PAYMENTS
THIS ONE INTERESTINGLY ENOUGH PROVIDES AN EMERGENCY ADVANCE OF UP TO TEN THOUSAND DOLLARS TO SMALL BUSINESSES AND PRIVATE NONPROFIT PROFITS AND SBA I'VE JUST LEARNED RECENTLY IS REALLY PROVIDING THAT ADVANCE ON $1,000 PER EMPLOYEE BASIS UP TO THAT $10,000 MAX
SO AGAIN AVAILABLE FOR A BROAD RANGE OF BUSINESSES
I THINK WE'VE ALL BEEN READING ABOUT THESE PROGRAMS IN THE PAPER
THE DEMAND HAS BEEN UNPRECEDENTED AND SOME LENDERS HAVEN'T BEEN READY
OTHERS HAVE BEEN OVERWHELMED
JUST PUT IT IN PERSPECTIVE, IN THE FIVE DAYS THESE TWO NEW LOAN PROGRAMS, OVER 500,000 LOAN REQUESTS WERE MADE AND OVER A 130 BILLION DOLLARS OF LOAN REQUESTS WERE APPROVED
THAT COMPARES VERSUS 63,000 LOANS AND $28 BILLION DOLLARS DURING THE ENTIRE 2019 YEAR
SO UNPRECEDENTED AMOUNT OF LOAN REQUEST, LOAN ACTIVITY GOING ON RIGHT NOW
THESE PROGRAMS WERE DESIGNED IN FIVE DAYS
SO
NEXT SLIDE PLEASE
IT'S NOT THE ONLY THING THE FEDS DID
IT IS ALSO PART OF THE CARES ACT
THEY PROVIDED DEBT RELIEF FOR ALL BUSINESSES THAT HAD SBA-BACKED LOANS SO THEY'RE GOING TO BE MAKING PAYMENTS FOR SIX MONTHS ON LOANS THAT WERE BOOKED PRIOR TO FEBRUARY 15TH OF THIS YEAR
IN ADDITION YOU'VE GOT SOME OTHER PLAYERS THAT ARE PUTTING THEIR OAR IN THE WATER TO HELP SMALL BUSINESSES
CITY OF SEATTLE JUST ANNOUNCED FINDING A NUMBER OF VERY SMALL BUSINESSES ALL UNDER 10 EMPLOYEES WITH THEIR SMALL BUSINESS STABILIZATION FUND
FACEBOOK HAS NOW ANNOUNCED SMALL BUSINESS GRANTS PROGRAM
THE WORKING WASHINGTON SMALL BUSINESS GRANTS HAVE BEEN ANNOUNCED
THAT HAS BEEN OVERWHELMED IN TERMS OF APPLICATIONS TO THE KING COUNTY OUTLET FOR THAT PROGRAM AND STILL MORE
AMAZON IS PROVIDING SOME GRANTS TO NEIGHBORHOOD BUSINESSES AROUND THEIR HEADQUARTERS
ON TOP OF THAT, SBA'S MADE CARTAIN SMALL BUSINESS LOANS AVAILABLE, EXPRESS BRIDGE LOANS ENHANCING THEIR EXPORT CREDIT INSURANCE AND CERTAINLY PROVIDING FUNDING AND RESOURCES TO LOCAL SMALL BUSINESS DEVELOPMENT CENTERS
NEXT SLIDE, PLEASE
SO ALL THIS INFORMATION WAS REALLY COMING OUT US QUICKLY
OUR STAFF STARTED TRACKING THE VARIOUS ELEMENTS OF THE CARES PROGRAM AND SPECIALLY THE RESOURCES FOR BUSINESSES AND WORKERS AND SHARING THOSE DETAILS WITH OTHER PORT STAFF ACROSS THE PORT
AN EXAMPLE WOULD BE AIRPORT DINING AND RETAIL
WE THEN SUBSEQUENTLY SET UP WEBINARS WITH OUR PARTNERS AT THE SMALL BUSINESS DEVELOPMENT CENTER
SPECIFICALLY AIMED TO HELP SUPPORT SMALL BUSINESS TENANTS OR PARTNERS
WE STARTED THOSE LAST WEEK WE HAD A GOOD SESSION WITH OUR ADR TENANTS LAST WEDNESDAY
I GOT GOOD FEEDBACK THAT IT WAS A ROBUST ACTION AND A LOT OF QUESTIONS WERE ASKED AND ANSWERED QUITE EFFECTIVELY
WE'VE PUSHED THESE DETAILS OUT ABOUT THE RESOURCES FOR SMALL BUSINESS ON OUR WEBSITE INCLUDING THE WEBINARS AVAILABLE AND THAT'S GOTTEN WIDELY DISTRIBUTED TO ADR TENANTS, DRAYAGE DRIVERS, MARITIME EDD TENANTS, GROUND TRANSPORTATION BUT ALSO JUST TO STAKEHOLDERS THAT WE HAVE WHETHER IT'S OUR ETHNIC MEDIA PARTNERS OR JUST AGAIN MARITIME AVIATION STAKEHOLDERS
THIS LITTLE EMAIL ON THE RIGHT WAS DELIVERED TO OVER 25,000 TENANTS, PARTNERS, AND STAKEHOLDERS THROUGHOUT THE REGION
SO MY TAKEAWAY HERE IS THAT IT'S UNPRECEDENTED TIMES
THERE ARE MANY SMALL BUSINESSES THAT ARE STRUGGLING BUT WE HAVE MANY PARTNERS ACROSS KING COUNTY AND THROUGHOUT THE REGION THAT ARE ALL DOING THE OUTREACH AND PROVIDING SUPPORT AND TRYING TO HELP BUSINESSES ACCESS THESE RESOURCES OR OTHER FORMS OF HELP
TEAMWORK IS KEY RIGHT NOW AND AGAIN, PLEASED THAT WE CAN WORK WITH PARTNERS LIKE THE SMALL BUSINESS DEVELOPMENT CENTERS TO BRING THIS EXPERTISE TO OUR SMALL BUSINESS CARTHAGE
SO THAT'S THE SUM OF WHAT I'VE GOT
I'D LIKE TO HAND IT OVER TO GUPTA AND DAWN TO TALK ABOUT OUTREACH AND RESOURCES FOR WORKERS
GOOD AFTERNOON, EXECUTIVE DIRECTOR METRUCK AND COMMISSIONERS
THIS IS DAWN
I'M THE SENIOR MANAGER FOR THE AIRPORT DINING RETAIL PROGRAM AT THE AIRPORT
I WANT TO THANK DAVE AND HIS STAFF FOR SUPPORTING SMALL BUSINESSES ACROSS THE PORT AND SPECIFICALLY AT THE AIRPORT
WE REALLY APPRECIATE IT AS OUR BUSINESS PARTNERS ARE IMPACTED AND SO WERE THEIR WORKERS AND WITH GUIDANCE AND SUPPORT FROM THE COMMISSION, STAFF PRIORITIZED THE IMPORTANCE OF PROVIDING RESOURCES FOR IMPACTED WORKERS WHERE THE NUMBERS ARE OVER 1300 JUST IN CONCESSIONS ALONE
THE WORKFORCE AT THE AIRPORT AND ACROSS THE PORT REPRESEN DIVERSE COMMUNITIES THAT HAVE BEEN GREATLY IMPACTED BY COVID-19
AVR HAS RECEIVED SEVERAL REPORTS THAT WORKERS WERE HAVING DIFFICULTY ACCESSING BENEFITS OR JUST BEING DENIED AND BEING PUT ON A WAITLIST AT THAT POINT WE KNEW WAS IMPORTANT TO PARTNER WITH THE OFFICE OF EQUITY DIVERSITY AND INCLUSION TO ASSIST IMPACTED WORKERS GAIN ACCESS TO HEALTH, UNEMPLOYMENT AND OTHER COVID-19 RELATED BENEFITS
I'M GOING TO TURN IT OVER TO OUR SENIOR DIRECTOR OF OUR EDI AND SHE'LL GIVE US SOME DETAIL ON WHAT THE WORKER TEAM IS DOING TO ASSIST THE IMPACT OF WORKERS AT THE AIRPORT AND NOT JUST AT THE AIRPORT BUT ACROSS THE ENTIRE PORT OF SEATTLE
BOOKDHA? THANK YOU DAWN
GOOD AFTERNOON COMMISSIONERS AND GOOD AFTERNOON EXECUTIVE DIRECTOR METRUCK
THANK YOU FOR THIS OPPORTUNITY TO TALK TO YOU ABOUT OUR WORK
WE HAVE BEEN PARTNERING WITH DAWN HUNTER LOOKING AT THE NEEDS OF THE WORKERS AT THE AIRPORT AND UTILIZING OUR EXISTING PARTNERSHIPS WITH THEIR WORK CENTER AND PORT JOBS AND I'LL JUST SAY A LITTLE BIT ABOUT THE EFFORTS THAT EACH OF THOSE ORGANIZATIONS ARE PUTTING INTO PLACE TO SUPPORT WORKERS AT THE AIRPORT
FAIR WORK CENTER IS NOW HOSTING A WEEKLY INFORMATIONAL WEBINAR
THESE WILL BE HELD
BOTH IN ENGLISH AND SPANISH
ABOUT A HUNDRED PEOPLE HAVE BEEN SIGNING UP FOR THESE WEBINARS
THE WEEKLY INFORMATIONAL WEBINARS WERE COVERING PERTINENT INFORMATION REGARDING IMMEDIATE AND URGENT WORKER NEEDS IN THE CONTEXT OF COVID-19 INCLUDING UNEMPLOYMENT BENEFITS, SICK TIME, CHANGING IMPLEMENTATION AND GUIDELINES AROUND EMERGENCY ASSISTANCE
TRAINING MATERIALS WILL ALSO GO OVER HOW TO GET IN CONTACT WITH NONPROFITS IN THE COMMUNITY SUCH AS PARTNERS IN EMPLOYMENT TO CONNECT WORKERS WHO USE OTHER LANGUAGES AND WHO NEED TO SPEAK WITH SOMEONE FOR ASSISTANCE WITH UNEMPLOYMENT APPLICATION, RENTAL ASSISTANCE, EMERGENCY ASSISTANCE, JOB SEARCH ASSISTANCE AND OTHER SUPPORT
WORK CENTER WILL ORGANIZE ONGOING WEBINARS AND TRAINING SPECIFIC TO AIRPORT WORKERS ASSESSING THE NEEDS OF THESE WORKERS AND THEIR REQUEST FOR SUPPORT INCORPORATED IN FUTURE MEETINGS
THEY PLAN TO OFFER THESE ON AN ONGOING BASIS AS FAR AS LONG AS THERE IS A NEED
THEY WILL OFFER LIVE TRANSLATION SERVICES TO MAKE THIS ACCESSIBLE TO LANGUAGES OTHER THAN ENGLISH AND SPANISH
ADDITIONALLY, EDUCATION MATERIALS ARE TAILORED TO SPECIFIC INDUSTRIES AND DISTRIBUTED TO THOUSANDS OF WORKERS THROUGH OUTREACH AND ONGOING EFFORTS OF THEIR STAFF
PLEASE MOVE TO THE NEXT SLIDE
WE'RE ALSO UTILIZING OUR C URRENT CONTRACT WITH PORT JOBS AND SHIFTING A BIT TO SUPPORT THE NEEDS OF WORKERS TO GET SIGNED UP FOR HEALTH CARE BENEFITS
PORT JOBS IS WORKING WITH KING COUNTY AND WASHINGTON STATE HEALTH INSURANCE EXCHANGE TO ENROLL THE WORKERS FOR HEALTH BENEFITS TO THE STATE
THEY'RE CONTINUING TO PLACE PEOPLE INTO JOBS AT THE AIRPORT
CURRENTLY FIVE EMPLOYERS ARE CONTINUING TO HIRE AT SEATAC
LAID OFF AIRPORT WORKERS MAY ALSO APPLY FOR TRANSPORTATION AND FOOD RELATED POSITIONS OUTSIDE THE AIRPORT
EXPECTED METRICS ARE THAT PORT JOBS 2,300 CLIENTS IN THE FIRST QUARTER OF THIS YEAR AND PLACE ABOUT 1,200 PEOPLE INTO AIRPORT JOBS
THEY EXPECT TO SERVE ABOUT 3,000 CLIENTS IN THE SECOND QUARTER WITH A FOCUS FROM JOB PLACEMENTS TO ASSISTANCE WITH BOTH JOBS AND RESOURCES FOR LAID-OFF WORKERS
THEY WILL ALSO BE SUPPORTING WORKERS TO ACCESS BASIC FOOD EMPLOYMENT TRAINING, INFORMATION AND CONNECTION TO THESE SERVICES AND OFFER GUIDANCE TO APPLY FOR UNEMPLOYMENT INSURANCE AND OTHER ONLINE SUBSIDIES
THE STATE HAS NOW CORRECTED THE STANDBY DENIAL GLITCH IN THE APPLICATION SYSTEM
ONLINE APPLICATIONS ARE NOW BEING PROCESSED SWIFTLY
PHONE COMMUNICATION WITH EMPLOYMENT SECURITY CONTINUES TO BE ON OVERLOAD OF COURSE
RIGHT NOW CERTAIN CONDITIONS MAY REQUIRE PHONE CONTACT
EMPLOYMENT SECURITY IS IN PROCESS OF HIRING 100 ADDITIONAL WORKERS TO ASSIST
PORT JOBS IS ALSO OFFERING ONE-ON-ONE VIRTUAL STEP-BY-STEP ASSISTANCE
WE NEED TO NEGOTIATE ALL OF THESE SERVICES AND WORKING WITH THEIR WORK CENTER TO SEND ANNOUNCEMENTS OF THOSE WEBINARS TO ALL OF THE 30,000 PEOPLE WHO ARE ON THE DATABASE OF PORT JOBS
THANK YOU
I JUST WANT TO MENTION IN CLOSING THAT BOTH PORT JOBS A ND FAIR WORK CENTER HAVE IDENTIFIED ADDITIONAL NEEDS FOR STAFF AND CONNECTION TO OTHER NONPROFITS SO THAT THEY COULD CONTINUE TO EXPAND SERVICES AND THE WORKFORCE DEVELOPMENT OFFICE AND OFFICE OF EDI WILL CONTINUE TO NEGOTIATE AND WORK WITH THEM TO EXPLORE THESE OPTIONS
THANK YOU SO MUCH FOR THIS TIME
LAUREN YOU CAN ADVANCE THE SLIDE
RYAN MCFARLAND'S GOT NEXT UP TO BRING US TOWARD OUR CONCLUSION TO DISCUSS THE FEDERAL NEXT STEPS
YES AND RYAN SHOULD HAVE GOTTEN AN UNMUTE PROMPT
THANK YOU LAUREN
GREAT
I WANTED TO SPEND A MINUTE TALKING ABOUT WHAT'S NEXT IN WASHINGTON DC AND THEN ERIC'S GOING TO TALK ABOUT HOW WE'RE HOW WE'RE GOING TO RESPOND TO THAT
SO CURRENTLY CONGRESS IS FOCUSED ON PROVIDING SOME ADDITIONAL FUNDING TO SUSTAIN CERTAIN PROGRAMS THAT WERE ESTABLISHED IN THE CARES ACT
TOP PRIORITY IS THE PAYCHECK PROTECTION PROGRAM
THE SMALL BUSINESS LOANS SOME ARE SAYING THAT COULD RUN OUT OF FUNDING AS SOON AS THIS WEEK
THE BILL MIGHT OR MIGHT NOT INCLUDE A FEW OTHER THINGS
THE CONTENT OF THE BILL HAS ACTUALLY CAUSED CONGRESS TO BE IN A BIT OF A DEADLOCK FOR THE LAST FEW DAYS, BUT WE THINK STILL THERE'S A DECENT CHANCE THAT SOMETHING WILL PASS THIS WEEK THAT WILL ADD MONEY TO THE PAYCHECK PROTECTION
PROGRAM AND PERHAPS A FEW OTHER DEMOCRAT PRIORITIES SUCH AS MORE FUNDS FOR HOSPITALS AND STATE AND LOCAL GOVERNMENTS
SO THE FOCUS REALLY RIGHT NOW IS ON EXISTING PROGRAMS AND ANYTHING BEYOND THAT INCLUDING ECONOMIC STIMULUS MEASURES WOULD HAVE TO BE PART OF A LARGER PACKAGE AND LIKELY WOULDN'T PASS THIS MONTH
MAY AT THE SOONEST BECAUSE CONGRESS PROBABLY WON'T RETURN UNTIL THEN
NEXT SLIDE, PLEASE
AND YOU CAN TURN ERIC ON IF HE IS UNMUTED
THANKS, RYAN
SO RYAN AND I BOTH DISCUSSED A BIT EARLIER THE IMPORTANCE OF OUTREACH
WE ARE TRACKING THE IMPLEMENTATION OF THE CARES ACT WITH OUR INTERNAL AND EXTERNAL STAKEHOLDERS
WE'RE DOING THAT BECAUSE WE WANT TO UNDERSTAND EXACTLY WHAT WE NEED TO PRIORITIZE FOR A FUTURE PACKAGE AND THAT MEANS UNDERSTANDING WHAT OUR INTERNAL DIVISIONS, OUR TENANTS AND OUR STAKEHOLDERS ARE EXPERIENCING WITH THE CURRENT ROUND AND WHAT MORE HELP THEY MIGHT NEED
SO SOME OF THAT AS RYAN ALLUDED TO IS BASED SIMPLY ON NEWS REPORTS
WE ALL KNOW THAT THE PAYCHECK PROTECTION PROGRAM IS OVEREXTENDED
IT'S BEEN WIDELY REPORTED OTHER PRIORITIES ARE DEVELOPED BASED ON CONVERSATIONS
FOR EXAMPLE WHEN RYAN AND I WERE ABLE TO SPEAK WITH REPRESENTATIVES FROM THE COMMERCIAL FISHING INDUSTRY OR WITH OTHER SUPPORT STAFF WHO ARE ENGAGED IN EFFORTS SUCH AS TOURISM PROMOTION, LIKE OUR ECONOMIC DEVELOPMENT DIVISION IN RON PECK, WE LEARN FROM THOSE CONVERSATIONS AND THEN OF COURSE WE LEARN THROUGH OUR OWN EXPERIENCES.
FOR EXAMPLE OUR EXPERIENCE WOULD INDICATE THAT THE AIRPORT CLEARLY INDICATES THE NEED FOR CONTINUED FUNDING ASSISTANCE THERE
WE ALSO LOOK AT GAPS OR THINGS THAT WEREN'T INCLUDED IN THE CARES ACT, THAT THIRD RELIEF PACKAGE, WHICH AS WE NOTED WAS VERY FOCUSED ON AIRPORT RELIEF BUT DID NOT INCLUDE DIRECT ASSISTANCE FOR IMPACTED SEAPORTS AND FOR THAT REASON WE'VE BEEN WORKING WITH THE AMERICAN ASSOCIATION OF PORT AUTHORITIES, OUR COLLEAGUES AT THE SEAPORT ALLIANCE AND OTHERS TO DETERMINE WHAT A FUTURE SEAPORT ASSISTANTS MEASURE WOULD LOOK LIKE AND I HAVE SHARED ACROSS THE ORGANIZATION WHAT RYAN AND I HAVE COLLECTED AS FAR AS PRINCIPLES THAT ARE GUIDING OUR FEDERAL ENGAGEMENT
THESE ARE COMING FROM THE CONVERSATIONS I HAVE DESCRIBED ABOVE WITH INTERNAL AND EXTERNAL STAKEHOLDERS AND THEY'RE CONSISTEN,T WE THINK, WITH THE PRINCIPLES LAID OUT IN THE COMMISSION'S MOTION ON APRIL 1ST
SO FROM THOSE VARIOUS SOURCES CLEAR PRIORITIES FOR OUR FUTURE FEDERAL ASSISTANCE BEGIN TO EMERG.E WE UNDERSTAND FOR EXAMPLE THAT SUPPORT ASSISTANCE IS ESSENTIAL AS IS A CONTINUATION OF AIRPORT ASSISTANCE
MEANWHILE THE COMMISSION HAS BEEN CLEAR THAT WORKER PROTECTIONS MUST BE PRIORITIZED AND WE'D LIKE TO SEE THAT CARRIED FORWARD IN FUTURE FEDERAL PACKAGES
INFRASTRUCTURE HAS BEEN MENTIONED A FEW TIMES TODAY
IT'S EXPECTED TO PLAY A CENTRAL ROLE IN ECONOMIC RECOVERY AND WHILE IT LOOKS LIKE THAT WON'T BE IN THE UPCOMING PACKAGE, WE DO EXPECT TO SEE INFRASTRUCTURE ADDRESSED IN SOME FUTURE PACKAGE AND WE'LL BE READY TO BRING FORWARD KEY PORT AND PARTNER PRIORITIES WHEN IT DOES
ENVIRONMENTAL RESILIENCE REFLECTS FEEDBACK FROM THE COMMISSION AS WELL AS A BELIEF IN OUR OPERATIONAL DIVISIONS THAT CLEAN ENERGY INFRASTRUCTURE AND THE INVESTMENTS THAT COME WITH IT CAN HELP SPUR ECONOMIC DEVELOPMENT AS WELL AS PROMOTING ENVIRONMENTAL SUSTAINABILITY
AND FINALLY SUPPORT FOR FISHING AND TOURISM INDUSTRIES CONFIRMS THAT THE PORT'S RECOVERY IS ONLY AS STRONG AS THE RECOVERY FOR OUR PARTNERS
LAUREN IF YOU'LL ADVANCE TO THE NEXT SLIDE, I CAN BRIEFLY DESCRIBE WHAT WE SEE AS NEXT STEPS
WE KNOW THAT, LIKE RYAN MENTIONED, CONGRESS MAY NOT COME IN UNTIL EARLY PART OF MAY
THE NEXT FEW WEEKS WILL BE IMPORTANT
CONTINUED OUTREACH IS KEY
IT'S AS SIMPLE IN CONCEPT AS IT IS ESSENTIAL IN PRACTICE
COVID-19 AND OUR REGIONAL AND INTERNATIONAL RESPONSE HAS TAUGHT US THAT CONDITIONS FACING US AND OUR PARTNERS CHANGE DAILY
HENCE THE NEEDS OF OUR OPERATING DIVISIONS AND THEIR PARTNERS CHANGE AS WELL
WE WILL BE CAREFUL TO ENSURE THAT WE KEEP TRACK OF THESE RELIEF EFFORTS AND BRINGING INFORMATION FROM THOSE CONVERSATIONS TO OUR FEDERAL PARTNERS
CONTINUED ADVOCACY AS I MENTIONED, FEDERAL PARTNERSHIPS
IT IS A DAILY EXERCISE AND I WANT TO GIVE A SHOUT OUT TO ERIC SHENFIELD OUR FEDERAL AFFAIRS MANAGER AND ACTING COMMISSION CHIEF OF STAFF RYAN MCFARLAND MY COLLEAGUE WHO'S ON HERE TODAY AND JEFF MARQUIS
THEY HAVE DEVELOPED CLOSE RELATIONSHIPS WITH KEY CONGRESSIONAL STAFF AND THOSE RELATIONSHIPS CULTIVATED IN QUIET TIMES PAYOFF IN THESE TRYING TIMES
ALSO THE COMMISSION'S WORK TO PARTNER IN DC AND PROVIDE TESTIMONY AND SHOW UP FOR GROUP TRIPS ALL HELP SOLIDIFY THOSE RELATIONSHIPS
SO WE WILL BE WORKING WITH PARTNERS LOCALLY AND WITH OUR FEDERAL PARTNERS TO MAKE SURE THAT THE PRIORITIES OUTLINED MAKE THEIR WAY INTO FUTURE PACKAGES
AND WITH THAT WE WILL CONCLUDE OUR PRESENTATION
WE ARE READY TO TAKE QUESTIONS FROM THE COMMISSION
COMMISSIONER STEINBREUCK YOU'LL NEED TO UNMUTE YOURSELF PLEASE UNMUTE THE COMMISSIONERS FOR QUESTIONS AND LET'S TAKE THEM ONE AT A TIME
ALL RIGHT SO WE WILL BEGIN WITH COMMISSIONER BOWMAN
I JUST HAVE A COUPLE OF QUESTIONS AND FIRST OF ALL I JUST WANT TO THANK YOU
THE MEMO IS TREMENDOUS
THERE'S A LOT GOING ON AND YOU ALL HAVE ADJUSTED REALLY WELL TO NEW INFORMATION COMING OUT DAILY AND I KNOW THERE'S A TON TO TRACK HAVING BEEN IN THAT POSITION BEFORE SO I JUST WANT TO COMPLIMENT YOU ALL
THE QUESTIONS I HAVE ACTUALLY IS SINCE YOU MENTIONED IN THE MEMO I HOPE YOU DON'T MIND ME ASKING BUT IT'S ACTUALLY ABOUT TRUCK DRAYAGE DRIVERS AND SO MAYBE THIS IS SOMETHING THAT RYAN MCFARLAND COULD TRY AND ANSWER GIVEN THAT HE'S OUR REPRESENTATIVE FOR THE NORTHWEST SEAPORT ALLIANCE BUT YOU MENTIONED ON PAGE 3 OF THE MEMO THAT THE CARES ACT UNDER SMALL BUSINESSES OFFERS SOME SORT OF RELIEF FOR DRAYAGE DRIVERS
CAN YOU ELABORATE A LITTLE BIT ON THAT? AND THEN THE SECOND THING WAS COULD YOU ELABORATE A LITTLE BIT ON WHAT YOU MIGHT BE DOING WITH AAPA TO LOOK FOR FUNDING FOR SEAPORTS MOVING FORWARD? SURE YOU BET DRAYAGE DRIVERS WAS A NEED THAT WE ACTUALLY DISCUSSED WITH YOU A FEW WEEKS AGO AND YOU HELPED US ANTICIPATE THAT NEED COMMISSIONER BOWMAN
BUT I THINK THE MAIN WAY THEY CAN RECEIVE RELIEF UNDER THE CARE ACT IS THROUGH THE SMALL BUSINESS LOANS AND THE FACT THAT SOLE PROPRIETORSHIPS ARE ELIGIBLE AND WE'VE HAD SOME CONVERSATIONS WITH THE DRAYAGE DRIVER COMMUNITY TOO BECAUSE YOU'RE NEVER REALLY SURE RIGHT UNTIL SOMEBODY APPLIES WITH A BANK AND IS ACCEPTED OR THEIR APPLICATION IS REJECTED SO WHAT WE TRY TO DO IS BASICALLY ESTABLISH SOME LINES OF COMMUNICATION AND JUST HEAR HOW THEY'RE DOING
WE'VE ALSO TRIED TO VALIDATE WITH AS MANY CONTACTS AS WE CAN THAT THEY ARE ELIGIBLE FOR THESE PROGRAMS AND WE'RE TOLD THEY ARE
SO I ACTUALLY WOULD LIKE TO I'LL COME BACK TO THE SEAPORT RELIEF QUESTION IN A SECOND BUT MAYBE TURN IT BACK TO DAVE YOU WANT TO FIELD THAT? BECAUSE IT'S REALLY AN OUTREACH QUESTION
RYAN THANK YOU
YOU GOT IT
RIGHT THE LOAN PROGRAMS MAY OFFER RESOURCE FOR OUR DRAYAGE TRUCK DRIVERS AND I'VE BEEN WORKING OR MY TEAM'S BEEN WORKING WITH BOTH MIC SCHULTZ AND SEAN EGAN TO GET THE WORD OUT ABOUT THE LOAN PROGRAMS BUT NOW WE'RE WORKING ON ORGANIZING A SPECIAL WEBINAR EXCLUSIVELY FOR OUR GROUND TRANSPORTATION AND DRAYAGE TRUCK DRIVERS
THEY KIND OF GENERALLY FIT THAT INDEPENDENT CONTRACTOR MOLD AND SO WE DON'T HAVE A DATE SET BUT MUCH LIKE WE DID ONE FOR ATR LAST WEEK
THAT'S OUR NEXT OUTREACH EVENT
WE'RE WORKING ON
IF I MIGHT JUST ASK
I KNOW THAT RYAN'S FAMILIAR
WHEN WE DID THE CLEAN TRUCKS PROGRAM WITH THE NORTHWEST SEAPORT ALLIANCE THERE WAS A WOMAN I DON'T REMEMBER RECALL HER NAME OFF THE TOP OF MY HEAD, BUT WHO WAS OUR CONDUIT TO THE TRUCKING COMMUNITY AND SHE JUST DID AN EXCEPTIONAL JOB OF ORGANIZING
SO I ASSUME OR HOPE THAT YOU'RE WORKING WITH HER
I THINK SHE LITERALLY HAD THE EMAIL ADDRESSES FOR ALMOST 600 DRAYAGE DRIVERS OR WHATEVER OUR UNIVERSE IS BETWEEN THE TWO SEAPORTS
SO I URGE YOU REACH OUT ON THAT AND THEN RYAN AND WE CAN TALK ABOUT THIS AT THE NEXT NORTHWEST SEAPORT ALLIANCE MEETING, BUT I JUST WAS CURIOUS AS TO WHAT SORTS OF FUNDING YOU MIGHT BE LOOKING FOR IN CONJUNCTION WITH AAPA AND IF THERE'S SOMETHING SPECIFIC FOR THOSE PORTS THAT HAVE SEEN A CONSIDERABLE DROP IN CONTAINER VOLUMES
LOOKS LIKE RYAN FROZE BRIEFLY
I MIGHT JUST STALL FOR HIM FOR A SECOND TO SAY THAT WE HAVE BEEN WORKING WITH THE AAPA AND WITH OUR INTERNAL FINANCE FOLKS TO UNDERSTAND WHAT DIFFERENT DIRRECT ASSISTANCE MODELS MIGHT LOOK LIKE
THE NUANCE THAT I'LL SHARE HERE IS THAT WHILE MANY SEAPORTS ARE EXPERIENCING REDUCED CONTAINER VOLUME, IT'S MY OBSERVATION THAT WE ARE EXPERIENCING REDUCED CONTAINER VOLUME AND THE DROP IN CRUISE REVENUE SO WE'RE HOPING THAT AAPA CAN DEVELOP A FORMULA THAT ACCOUNTS FOR NOT JUST REDUCTIONS IN CONTAINER VOLUME WHEN CONSIDERING A LEVEL OF ASSISTANCE BUT ALSO FOR THOSE PORTS THAT HAVE BOTH CONTAINER BUSINESS AND CRUISE BUSINESS
SO WE WERE I BELIEVE ONE OF THE FIRST MEMBERS WHO HAVE THE CHANCE TO REVIEW A PROPOSED FORMULA AND WE RAN IT THROUGH OUR FINANCE FOLKS TO UNDERSTAND HOW MUCH THAT WOULD PROVIDE AS FAR AS A DIRECT PAYMENT
WE PROVIDED THAT FEEDBACK TO AAPA AND IT'S MY UNDERSTANDING THAT THEY'RE UNDERTAKING A SIMILAR OUTREACH PROCESS WITH OTHER MEMBER PORTS
THANK YOU ERIC
THAT'S REALLY HELPFUL
OKAY COMMISSIONER CALKINS
YEAH THANK YOU FOR THE PRESENTATION
THERE'S A COUPLE OF THEMES THAT I JUST WANTED TO HIGHLIGHT
ONE IS THAT THE SCALE OF THE CRISIS HAS FAR HAS DWARFED OUR ABILITY TO RESPOND TO IT AND I'M SPEAKING AT ALL LEVELS FROM FEDERAL, STATE ON DOWN TO LOCAL GOVERNMENTS LIKE US
AND SO WHILE THESE PROGRAMS ARE A GOOD FIRST STEP IT'S ABSOLUTELY ESSENTIAL THAT MORE COMES TO THE AID OF THESE SMALL BUSINESSES IN PARTICULAR
AND I'LL JUST-- A COUPLE OF ANECDOTES FROM MY OWN EXPERIENCE
I HAVE IN MY OTHER HAT BEEN WORKING WITH LOTS OF MICRO BUSINESSES IN THE SEATTLE AREA
AND I THINK I'VE BEEN PRIVY TO AT LEAST 40 DIFFERENT ENTREPRENEURS APPLYING FOR GRANTS OR LOANS AT THE FEDERAL LEVEL, THE STATE LEVEL DOWN, TO THE CITY LEVEL HERE IN THIS REGION AND YESTERDAY THE CITY ANNOUNCED ITS FIRST DISTRIBUTION OF GRANT DOLLARS
THEY ANNOUNCED 250 GRANTEES OUT OF 9,000 APPLICATIONS AT THE STATE LEVEL THEN ANNOUNCED A GRANT PROGRAM FOR $10,000 GRANTS ON MONDAY .BY TUESDAY KING COUNTY HAD SHUT DOWN ACCEPTING APPLICATIONS FROM KING COUNTY BUSINESSES
SO WE ARE SIMPLY IN UNPRECEDENTED TIMES RIGHT NOW AND WE NEED TO CONTINUE TO FIND WAYS TO SUPPORT THE SMALL BUSINESSES
SO EVERYTHING WE CAN DO NOT ONLY TO ASSIST THEM IN NAVIGATING ALL OF THESE LOAN AND GRANT APPLICATIONS THAT THEY'RE HAVING TO PUT IN BUT ALSO TO RECOGNIZE THAT THERE'S NOT SUFFICIENT FUNDS TO BE ABLE TO SUPPORT EVERYBODY AND FIGURING OUT OTHER MECHANISMS FOR RELIEF IS ABSOLUTELY ESSENTIAL
AND THEN THE OTHER THING IS TWO WEEKS AGO WHEN WE MET, WE SPENT A LOT OF TIME TALKING ABOUT DIFFERENT WAYS THAT VARIOUS STAKEHOLDERS NEED RELIEF I AM I JUST WANT TO SAY HOW GRATEFUL I AM FOR THE STAFF WORK THAT'S BEEN DONE IN THE LAST TWO WEEKS PARTICULARLY AROUND ISSUES RELATED TO WORKER NEEDS AND FINDING WAYS TO FIRST IDENTIFY THE SCOPE OF THE PROBLEM
IT'S FAIRLY EASY TO UNDERSTAND WHAT AIRLINES ARE BEING IMPACTED BY COVID AND THE ECONOMIC IMPLICATIONS THEREOF, IT'S A LOT HARDER TO FIGURE OUT WHAT WHICH INDIVIDUALS
WHETHER THEY WERE GIG WORKERS OR INDEPENDENT CONTRACTORS OR PART-TIME EMPLOYEES OR FULL-TIME EMPLOYEES WHO ARE LAID OFF AND WHAT THEIR NEEDS ARE AND IT'S MUCH MORE TIME INTENSIVE AND YET IT'S ABSOLUTELY ESSENTIAL THAT WE KEEP UP THAT WORK TO FOCUS ON THAT AND I TRULY APPRECIATE THAT
I'M ALSO REALLY INTRIGUED TO SEE THAT AT THE STATE LEVEL THE STATE GOVERNMENT INCLUDING THE ATTORNEY GENERAL HAS BEEN LOOKING AT AT EXPANDING POWERS FOR EVEN MUNICIPAL DISTRICTS LIKE PORTS TO BE ABLE TO DO ADDITIONAL RELIEF EFFORTS IN THESE EXTRAORDINARY TIMES
SO THANKS AGAIN FOR ALL THAT WORK
OKAY
COMMISSIONER CHO? JUST TWO QUESTIONS [INAUDIBLE] COMMISSIONER CHO YOU SEEM TO BE CUTTING OUT A BIT
I CAN HEAR YOU NOW
YOU CAN START OVER
A POINT OF CLARIFICATION
WHEN IT COMES TO THE FEDERAL AID, IS THE DIFFERENCE BETWEEN A GRANT AND A LOAN JUST THE FACT THAT YOU HAVE TO PAY BACK TO THE FEDERAL GOVERNMENT OR ARE THERE OTHER NUANCES? I'LL TRY AND ANSWER THAT COMMISSIONER CHO
BOTH OF THE NEW LOAN PROGRAMS HAVE WHAT I CALL GRANT PROVISIONS
PAYCHECK PROTECTION PROGRAM LOANS THAT FEATURE OKAY YOU GET A LOAN BUT YOU WON'T HAVE TO PAY BACK THE FUNDING USED ON PAYROLL COSTS SO THAT'S ONE PROVISION
BUT IN THE ECONOMIC INJURY DISASTER LOAN YOU CAN GET AN ADVANCE UP TO $10,000 THAT REVERTS TO A GRANT
SO BOTH OF THEM HAVE SOME FEATURES OF GRANT RESOURCES IN THEM THAT WORK KIND OF DIFFERENTLY AND WITHIN EACH LOAN PROGRAM
THIS IS MORE OF A QUESTION FOR LANCE AND THE AVIATION SIDE
OF THE 10 BILLION DOLLARS IT SOUNDS LIKE THERE'S A PORTION THAT REALLY HAS NO RESTRICTIONS AS LONG AS IT'S USED FOR O&M, DEBT SERVICE OR POTIENTIAL CAPITAL PROJECTS
DOES O&M UNDER THOSE PARAMETERS-- EVEN THOUGH THERE ISN'T ANY MONEY ALLOCATED IN CARES SPECIFICALLY FOR ADR COULDN'T WE USE SOME OF THIS MONEY FOR ADR? WHEN YOU SAY USE IT FOR ADR AND WHEN YOU SAY USE IT FOR ADR, IN WHAT SENSE? I MEAN PROVIDING ANY FORM OF WELL I GUESS YOU WOULD STILL RUN INTO GIFT OF PUBLIC FUND ISSUES BUT
WHAT COULD WE USE IT TO PROVIDE TEMPORARY RELIEF TO ADR TENANTS? IN TERMS OF DEFERRAL OR IN TERMS OF ABATEMENT? WELL MY UNDERSTANDING IS WE CAN'T DO ABATEMENTS RIGHT? SO I GUESS IT WOULD BE DEFERRALS OR ANY OTHER CREATIVE WAYS WE MAY BE ABLE TO HELP ASSIST WITH OUR ADR TENANTS
WITH THE UPDATED AND I NEED TO GO BACK TO THE DETAILS OF IT
WITH THE UPDATED GUIDELINES THAT CAME OUT THE SECOND GUIDELINES THAT CAME OUT FROM THE FAA YOU ACTUALLY CAN DO ABATEMENTS
IT'S A LOCAL DECISION THAT YOU'LL HAVE TO MAKE TO DO ABATEMENTS
AND SO DOES THAT MEAN THAT THE MONEY FROM THE CARES ACT COULD POTENTIALLY ALSO BE USED FOR THAT? I DON'T KNOW IF WE COULD JUST GIVE THE ADRS MONEY
WE COULD DO ABATEMENTS IF WE SO CHOSE
IF WE CAN AFFORD IT
WE HAVEN'T RUN THAT TYPE OF ANALYSIS
COMMISSIONER, THIS IS STEVE METRUCK I'M GOING TO JUMP IN
THERE'S THE FAA SIDE THEN THERE'S THE WASHINGTON STATE LAW AS WELL
SO
LANCE'S TALKING ABOUT ONE SIDE BUT I GUESS WE'D HAVE TO GET THE LEGAL REVIEW OF THAT BEFORE WE UNDERTOOK ANYTHING
I JUST HEARD LANCE MAKE THE POINT THAT THERE WAS NO ADR SPECIFIC MONEY IN THE CARES ACT WHICH WAS DISAPPOINTING OBVIOUSLY BUT I WANT US TO EXPLORE IT AND MAKE SURE THAT WE'RE NOT
WE COULD POTENTIALLY USE THIS MONEY FOR ARD IF NOT IT'S NOT SANCTIONED FOR SOMETHING
THAT MIGHT BE AN OPTION
THINK INITIALLY THERE WAS TWO BILLION IN ONE OF THE PACKAGES FOR ARDS AND THEN IT WAS REMOVED BY THE TIME THAT PACKAGE WAS FINALIZED
I SEE
THANK YOU
THAT'S ALL THE QUESTIONS I HAD
COMMISSIONER FELLEMAN YOU SHOULD BE UNMUTED
THANK YOU
I WANTED TO JUST A REVIEW FOR A MOMENT THE VARIOUS THINGS THAT WE'VE DONE TO DEFER SOME OF THE EXPENSES AND THEN TO SEE ABOUT ONE OTHER COMPONENT
SO BEST I COULD TELL WE HAVE DEFERRED THE ENTRY FEES FOR THE GROUND TRANSPORTATION FOR TWO MONTHS
THAT WAS FOR THE CABS AND OTHERS
AND THEN WITH THE ADR WE HAVE A 2 MONTH RELIEF AND THEN A POTENTIAL FOR TWO ADDITIONAL MONTHS
AND THEN WITH THE MARINA I THINK WE JUST EXTENDED TWO MONTHS DEFERRAL FOR THEIR MOORAGE
AND THEN EDD WE JUST DID, WAS THAT A FOUR-MONTH DEFERRAL? IS THAT THE RIGHT SUMMARY OF THE RENT RELIEF THAT HAVE BEEN PROVIDED SO FAR? I THINK THE EDD WAS THE SAME AS THE OTHERS WAS
FOUR MONTHS WITH A REVIEW
WE WERE COLLECTING INFOMRATION AT THE BEGINNING
THIS IS STEVE
THE EDD IS AND THE MARITIME LAND SIDE IS 4 MONTHS KEEPING WITH A 2 PLUS 2 AND THEN THE GROUND TRANSPORTATION I BELIEVE THAT WAS INITIALLY THREE BECAUSE THAT WAS BEFORE THE OTHER ACTIONS
WE'LL LOOK AT ALIGNMENTS AND FEEDBACK ON THOSE
AND THEN THE MOORAGE WAS TWO MONTHS OKAY SO THE EDD IS A 2 AND THEN REVIEW AGAIN IN 2? NO IT'S NOT
WE'RE COLLECTING INFORMATION UP FRONT FROM FROM THEM ON THEIR REQUIREMENTS
IT'S FOUR MONTHS UP FRONT
AND I THINK AT THIS POIN TWE HAD LIKE 72 OF OUR 200 OR SO TENANTS HAVE SOUGHT SOME RELIEF
IS THAT CORRECT? I DON'T KNOW WHO IS UNMUTED
I DON'T KNOW THE COMPLETE NUMBERS RIGHT NOW
SO I HAVE UNMUTED DAVE MCFADDEN
ERIC FETCH SHOULD ALSO BE UNMUTED EITHER OF THOSE WOULD BE THE APPROPRIATE
I THINK THAT AS THE CONVENER OF MULTIPLE DIRECTORS ON THIS I THINK THE BEST BET IS TO TAKE YOUR QUESTIONS AND GET BACK TO YOU
I DON'T KNOW THE SPECIFIC NUMBER SO UNLESS ANYBODY HAS THE EXACT NUMBERS OF TENANTS WHO'VE REQUESTED RELIEF I DON'T HAVE THAT INFORMATION AT MY FINGERTIPS RIGHT NOW
I JUST WANT TO MAKE ONE CORRECTION
GT WAS NOT DEFERRED FOR THREE MONTHS
TAXES SPECIFICALLY BECAUSE THAT'S A DECISION THAT WAS MADE
THE REST OF THE GT WAS DEFERRED FOR TWO MONTHS
JUST WANT TO MAKE THAT CLARIFICATION
YOU'RE CORRECT LANCE
SORRY ABOUT THAT
AND THE MOORAGE WAS THREE MONTHS NOT TWO MONTHS
I THINK I RECALL READING THAT IT WAS ABOUT 73 OR 78 OF OUR 200 A LAND-BASED TENANT WERE SEEKING RELIEF
SO ANYWAY, I'M POINTING OUT THE FACT THAT THERE'S A QUITE A BIT OF VARIATION IN THE MONTHS OF RELIEF WERE OFFERING AND THE ONE ADDITIONAL POINT OF VARIATION I WAS INQUIRING ABOUT WAS WITH REGARDS TO TENANTS THAT ARE NONPROFITS
I UNDERSTAND WE HAVE ABOUT 20 OF THOSE AND IT JUST STRIKES ME THAT IT'S A SOMEWHAT OF A DIFFERENT SPECIES OF BUSINESS THAT ARE IN THE NONPROFIT BUSINESS AND I WAS WONDERING WHETHER WE HAD GIVEN ANY THOUGHT TO PROVIDE A DIFFERENT LEVEL OF RELIEF FOR THEM? FRED THIS IS DAVID MCFADDEN
THE NONPROFITS AND SMALL BUSINESSES ARE BOTH PROTECTED BY THE CITY COUNCIL AND MAYORS' ORDERS
NON EVICTION AND THINGS LIKE THAT
SO WE ARE WORKING WITH BOTH CLASSES OF TENANTS
WE HAVE NOT DONE ANYTHING BEYOND JUST SUGGESTING DEFERRAL OF RENT FOR THOSE NONPROFIT TENANTS
BUT WHERE WE ARE RIGHT NOW IS WE HAVE JUST SENT CERTIFICATION REQUESTS TO ALL THE TENANTS SO THAT IF THEY HAVE AN IMPACT THEY FORMALLY ASK US FOR RELIEF AND CITE THOSE IMPACTS
SO WE'RE AT THE BEGINNING OF THE PROCESS
YOU ARE CORRECT
WE HAD ABOUT 70 INQUIRIES ABOUT RELIEF AND NOW THAT WE'VE SENT OUT MORE FORMAL PAPERS THAT ASK FOR DOCUMENTATION I THINK WE'RE PROBABLY WITH ABOUT 20 THAT WE HAVE RECEIVED BACK FORMAL REQUEST FOR RELIEF
THANK YOU AND SO PORT JOBS WOULD BE A TENANT THOUGH THAT'S ALSO A NON-PROFIT RIGHT? PORT JOBS IS A NON-PROFIT
I COUNTED THEM AS PART OF THE 20
YES
THEY ARE
THANK YOU
DO WE HAVE OTHER AIRPORT TENANTS THAT ARE NONPROFITS? I CAN'T ANSWER THAT
WE'LL HAVE TO GET BACK TO YOU WITH THAT ANSWER COMMISSIONER
PORT JOBS IS OBVIOUSLY AN IMPORTANT ONE TO THE AIRPORT AND I WOULD ASSUME MOST OF THE OTHER ONES WOULD BE ON THE EDD SIDE
BUT ANYWAY IT WOULD BE GOOD TO HAVE AT LEAST A RATIONALE AND THEN TO SEE IF INDEED THIS WOULD PROVIDE A DIFFERENT CATEGORY TO CONSIDER AS WELL
SO I KNOW WHAT I'VE HEARD FROM A COUPLE OF NONPROFITS SO FAR BUT I DON'T KNOW WHETHER IT'S A UBIQUITOUS CHALLENGE ANY MORESO THAN FOR ANYBODY ELSE
OKAY I HAVE SOME QUESTIONS FOR LANCE AND THE FEDERAL FINANCIAL RELIEF FOR AIRLINES AS WELL AS THE COMMISSION AND PORT'S RESPONSE TO AIRLINE CARRIERS WHO ARE SEEING AS MUCH AS 80% DROP IN THEIR PASSENGER VOLUMES
THE MOTION THAT WE PASSED ONLY SAID THAT WE WOULD CONSIDER GATE FEE AND RENT DEFERRALS FOR ONE MONTH OR MORE UNLIKE THE OTHER BUSINESSES THAT HAVE BEEN CALLED OUT RIGHT AND EVALUATION OF FEDERAL RELIEF GRANTS AND LOANS TO FOR DEFERRALS
I THINK THE INTENT THERE WAS FOR A PENDING AIRLINES INCLUDING 25 BILLION FOR PASSENGER CARRIERS AND 25 IN GRANTS AND WITH LOTS OF STIPULATIONS AND RESTRICTIONS AND LOANS FOR PASSENGER CARRIERS
SO LANCE HAVE YOU UNDERTAKEN A REVIEW AT THIS TIME TO DETERMINE WHETHER OR NOT TO PROVIDE GATE FEE AND RENTAL RELIEF TO THE CARRIERS? AND IF NOT, WHEN? WE'RE STILL IN THAT PROCESS
OUR TARGET DATE IS THE 22ND OF APRIL .AS YOU CAN SEE WE TOOK IMMEDIATE ACTION TO PROVIDE RELIEF FOR THE AIRLINES IN TERMS OF ACCELERATING THE REVENUE SHARING AND DEFERRING INCREASE IN RATES TO THE AIRLINES
SO WE TOOK IMMEDIATE ACTION THAT WOULD AT LEASE GIVE THEM A MONTH
WE HAD A DEADLINE ESTABLISHED LAST FRIDAY FOR THE AIRLINES TO PROVIDE US INFORMATION WITH REGARDS TO ACTIONS YOU'RE GOING TO TAKE WITH REGARDS TO APPLYING FOR GRANTS AND LOANS BUT THERE ARE OTHER FACTORS THAT WERE TAKEN INTO CONSIDERATION TO MEET THIS DECISION
I'LL MAKE THIS RECOMMENDATION BY APRIL 22ND
ONE IS THE UPDATED FORECAST OF OUR UNEMPLOYMENT, THE OTHER ONE IS OUR REVISED CASH FLOW POSITION BASED ON THOSE INPLANEMENTS
ANOTHER ONE OF COURSE THE BIG ONE THAT WE'RE WAITING FOR IS INFORMATION WE GOT TODAY WHICH IS OUR SHARE OF THE 10 BILLION DOLLARS AND EXACTLY HOW WE CAN AND HOW WE WILL USE THAT
SO THOSE ARE ALL THE FACTORS THAT-- WE'RE TRYING TO GET OUR INFORMATION, WE'RE TRYING TO MAKE THE DECISION
SO WE'RE ON TARGET TO MAKE THAT RECOMMENDATION BY A[RIL 22ND
YEAH SO THERE'S A LOT OF MOVING PARTS TO THIS IS WHAT YOU'RE SAYING
BASICALLY YOU WANT TO SEE THE TOTAL PICTURE BOTH THE RELIEF TO AIRPORT AS WELL AS THE APPROACH THAT'S BEING TAKEN BY THE CARRIERS WITH REGARD TO APPLYING FOR THESE LOANS AND GRANTS AND I THINK YOU SAID THAT THE FAR MAJORITY WERE WERE FOR LOANS AND NOT GRANTS IS THAT CORRECT? THE MAJORITY HAVE APPLIED FOR GRANTS I'VE NOT HEARD ANY THAT ARE TAKING ADVANTAGE-- I'M SORRY I GOT THAT BACKWARDS AND THE GRANTS ACTUALLY BENEFIT THE EMPLOYEES
YES, THE GRANTS HAVE TO BE USED FOR PAYROLL PURPOSES
I'M SURE THERE'S A FAIR NUMBER OF LOCAL EMPLOYEES INVOLVED THERE AS WELL WITH REGARD TO THE CARRIER
SO THAT'S GOOD THERE IS THAT OPPORTUNITY THERE BUT JUST TO COME FULL CIRCLE, ON THIS
SO
THE EXPECTATION IS THAT WE'LL HAVE A CLARITY ON THE 22ND OF APRIL AFTER YOU'VE BEEN ABLE TO HAVE A FULLER ASSESSMENT IN TERMS OF DETERMINATION OF GATES AND RENT DEFERRALS SPECIFICALLY
AND I DON'T KNOW WHAT OTHER POTENTIAL FORMS OF RELIEF THERE MIGHT BE
YOU DID IT ADVANCE THE REVENUE SHARING
YOU DID PUT A HOLD ON ANY RATE INCREASES
THE FINAL THING HERE REALLY UNLESS THERE'S SOMETHING ELSE I DON'T KNOW IF YOU'RE CONSIDERING ANY OTHER TYPES OF RELIEF EFFORTS TO THE CARRIERS BUT THE REMAINING THING THEN IS REALLY THE RENT AND GATE FEE DEFERRALS
HOLDING FEES THEN AND RENT DEFERRAL
THAT'S THE NEXT THING WE'RE GOING TO BE LOOKING AT
ALL RIGHT THANK YOU
I THINK THAT ANSWERS IT FOR ME
COMMISSIONER BOWMAN
SORRY ONE MORE
AN AREA THAT WE HAVEN'T TOUCHED ON AT ALL SINCE WE BEGAN THE COVID CRISIS IS AIR CARGO
I DON'T NEED INFO RIGHT NOW BUT I'M HOPING THAT IN OUR NEXT COMMISSION MEETING WECOULD HAVE A DESCRIPTION OF WHAT'S HAPPENING WITH AIR CARGO
YEAH WE CAN PROVIDE THAT TO YOU COMMISSIONER
PROBABLY ONE OF THE FEW BRIGHT SPOTS WE HAVE
THANK YOU
ARE THERE ANY FURTHER QUESTIONS FROM COMMISSIONERS OR COMMENTS BEFORE WE CLOSE? LET'S GO THROUGH EACH COMMISSIONER AGAIN SO COMMISSIONER CALKINS? NO FURTHER COMMENTS RIGHT NOW
COMMISSIONER CHO? NO FURTHER COMMENTS
COMMISSIONER FELLEMAN? YEAH I ACTUALLY I GOT A CALL FROM TAYLOR SHELLFISH SAYING SINCE THEY DO MOST OF THEIR AIR CARGO THROUGH BELLY CARGO THAT THEY WERE HAVING A CHALLENGE GETTING THEIR SHELLFISH OVERSEAS
SO PURE CARGO I THINK IS THE ONE THAT'S DOING WELL RIGHT? IT'S THE BELLY CARGO THAT WOULD BE MORE OF A CHALLENGE
IS THAT NOT THE CASE? THAT WOULD BE MORE OF A CHALLENGE BUT IT PROBABLY ALSO PROVIDES AN OPPORTUNITY AS WELL
OKAY SO NOW THE ONLY OTHER
ANOTHER NONPROFIT AT THE AIRPORT WOULD BE THE USO
WOULD THEY BE SUBJECT TO THIS CHALLENGE OR WOULD THE FEDERAL GOVERNMENT HAVE A SPECIAL RELATIONSHIP WITH THEM? MY UNDERSTANDING IS THAT THE USO SHUT DOWN OPERATIONS SEVERAL WEEKS AGO HERE AT THE AIRPORT
WOW OKAY MAKES SENSE
OKAY I THINK WE ARE ABOUT READY TO WRAP UP
THAT WAS VERY INFORMATIVE
THANK YOU TO ALL OF OUR STAFF AND LEADERSHIP TEAM FOR PULLING THIS TOGETHER AND IT HELPS US DRILL DOWN AND UNDERSTAND THE BIGGER PICTURE HERE
AND I THINK IT'S IMPORTANT FOR PUBLIC AWARENESS AS WELL TO SEE WHAT WE'RE DOING, WHAT WE'RE RESPONDING TO, AND HOW WE PLAN TO PROVIDE SOME ADDITIONAL RELIEF POTENTIALLY THE FUTURE
THANK YOU ALL
AND I'D LIKE TO NOW ASK IF UNDER THE FINAL ITEM COMMITTEE REFERRALS ARE THERE ANY MORE COMMERCIAL COMMENTS? NOW'S YOUR OPPORTUNITY COMMISSIONER BOWMAN WE'LL START WITH YOU
NOPE NOTHING FURTHER
THANK YOU SO MUCH
COMMISSIONER CALKINS? NOTHING FURTHER COMMISSIONER CHO? NOTHING FURTHER
THANK YOU COMMISSIONER FELLEMAN
I WOULD JUST LIKE TO WISH YOU ALL A HAPPY 50TH ANNIVERSARY OF EARTH DAY AND REMEMBER THAT THE CLIMATE CRISIS WILL CONTINUE EVEN AFTER WE GET OVER THE COVID CRISIS AND THE HUMAN AND ECONOMIC IMPACTS ARE TOTALLY PREDICTABLE AND HOPE WE CONTINUE OUR EFFORTS TO DOUBLE DOWN ON THIS REGARD AND THANK YOU ALL FOR WHAT YOU'RE DOING TO THAT END
OKAY WITH THAT I THINK HEARING NO FURTHER COMMENTS WE ARE NOW ADJOURNED AT 2:29 P.M
THANK YOU ALL AND HAVE A GOOD EVENING
THANK YOU.

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