The Audit meeting scheduled for 2021-09-09 at Remote

Transcript

The Audit meeting scheduled for 2021-09-09 at Remote

SO
GOOD AFTERNOON
THIS IS COMMISSIONER BOWMAN CALLING TO ORDER THE PORT OF SEATTLE AUDIT COMMITTEE SPECIAL MEETING TODAY IS THURSDAY, SEPTEMBER 9, 2021, AND THE TIME IS 230
WE'RE MEETING REMOTELY TODAY VIA THE TEAM'S PLATFORM TO COMPLY WITH SENATE CONCURRENT RESOLUTION 8402 AND GOVERNOR INSLEE'S PROCLAMATION 20-28
PRESENT WITH ME TODAY OUR COMMITTEE ALTERNATIVE MEMBER, COMMISSIONER CALKINS AND PUBLIC MEMBER CHRIS GEHRKE
WILL, THE CLERK, PLEASE CALL THE ROLL TO ENSURE ALL COMMITTEE MEMBERS ARE ON THE LINE
THANK YOU, COMMISSIONER
BEGINNING WITH COMMISSIONER CALKINS HERE
THANK YOU
MEMBER GEHRKE, YOU MIGHT BE MUTED
CHRIS, I DO SEE HER
OKAY
I KNOW THAT SIGH
YES, NOTING FOR THE RECORD, I DO SEE HER
I'M HERE
HERE WE GO
THANK YOU VERY MUCH
CAN YOU HEAR ME NOW? YES
OKAY
SORRY
I DON'T KNOW WHAT IT WAS
AND THEN COMMISSIONER BOWMAN PRESENT
THANK YOU
ALRIGHT
THANK YOU
AS THIS IS A VIRTUAL MEETING, WE'VE MADE SPECIAL ARRANGEMENTS TO PROVIDE FOR REMOTE PARTICIPATION FOR ALL OF OUR STAFF, ANY OUTSIDE PRESENTERS AND ALSO OUR COMMITTEE MEMBERS
PLEASE NOTE THAT ALL VOTES, COMMENTS AND QUESTIONS AS THEY WILL BE TAKEN BY THE ROLL CALL METHOD AS A RESULT OF OUR VIRTUAL ENVIRONMENT TO MAKE THIS MEETING MORE ACCESSIBLE TO THE PUBLIC
THE MEETING IS BEING LIVE STREAMED, EXCUSE ME, AND DIGITALLY RECORDED AND MAY BE VIEWED OR HEARD AT ANY TIME ON THE PORT WEBSITE
BEFORE MOVING FORWARD INTO OUR BUSINESS ITEMS TODAY, I'D LIKE TO REQUEST THE AGENDA
ITEM EIGHT
WE MOVED TO THE FIRST ITEM OF BUSINESS
COMMISSIONER CHO, WHO IS A REGULAR MEMBER OF THIS COMMITTEE, HAS A CONFLICT FOR THIS ITEM AND THEREFORE MOVING IT ON THE AGENDA WILL ALLOW FOR HIS PARTICIPATION FOR THE REMAINDER OF THE MEETING ONCE IT IS ADDRESSED
IF THERE IS NO OBJECTION TO THIS RE ORDER, ANY OBJECTION, [inaudible 00:02:35]
THANK YOU
WE WILL TAKE ITEM NUMBER EIGHT, THE OPERATIONAL AUDIT FOR TNCS FIRST
SO WITH THAT GLEN, PLEASE INTRODUCE ITEM NUMBER EIGHT AND THE PRESENTERS
THANK YOU, COMMISSIONER BOWMAN
THE PRESENTERS ARE GOING TO BE ME AND DAN CHASE
I'M GOING TO OPEN IT UP AND THEN DAN WILL TALK TO THE ISSUE
SO, YOU KNOW, TNCS, WE LOOKED AT BOTH LYFT AND UBER AND THERE ARE TWO SEPARATE AUDITS WE STARTED, BUT SINCE THE PROCESSES AND CONTROLS ARE PRETTY MUCH EXACTLY THE SAME FOR BOTH, WE DID COMBINE THEM INTO ONE REPORT AND WE CALLED IT THE TNC REPORT
LYFT ONE OF THE COMPANIES IN UBER GOES BY THE NAME OF RASIER
SO MICHELLE, IF YOU COULD PULL UP THE DECK, THE POWERPOINT DECK AND GO TO SLIDE 20, PLEASE
THANK YOU
GIVE ME JUST A MINUTE HERE
GLAD I'M PULLING THAT UP NOW
OKAY
OKAY
BEAR WITH ME A SECOND
LET ME GET YOU BACK IN THE RIGHT PLACE AND GET YOU ON THE RIGHT SLIDE
NO PROBLEM
THERE YOU GO
OKAY, SO A BIG OVERVIEW IS FOR PICKUPS
BOTH COMPANIES PAY $6 AND A DROP OFF $2
THE PERIOD THAT BEYOND AUDITED WAS FROM 2017 APRIL ALL THE WAY TO MARCH
ABOUT THIS YEAR, BOTH UBER AND LYFT USE APPS THAT EVERYONE'S FAMILIAR WITH, AND THOSE APPS WORK WITH SOMETHING CALLED GEOFENCE CIRCLES THE AIRPORT
SO ANYTIME THERE'S ACTIVITY WITHIN THAT GEOFENCE, A THEORETICAL YOU SHOULD GET BILLED FOR A PICK UP OR DROP OFF
SO CUSTOMERS DROPPED OFF AT THE AIRPORT
AND WITHIN THAT GEOFENCE, WE EARN $2 AT THE PICK UP, AND IT'S WITHIN THE GEOFENCE SHOULD BE $6.00
PER TRIP
NEXT SLIDE, PLEASE
MICHELLE
AS YOU CAN SEE, REVENUES HAVE GROWN SIGNIFICANTLY OVER THE LAST FEW YEARS
AND IF YOU LOOK AT 2021, JUST THE FIRST HALF OF THE YEAR WITH SIGNIFICANT AND ONCE WE GET THROUGH THE PANDEMIC, THIS WILL CONTINUE TO GROW JUST BECAUSE OF A VARIETY OF THINGS
BUT, YOU KNOW, PRIMARILY EVERYONE KNOWS RENTAL CARS ARE REALLY HARD TO COME BY
PEOPLE DON'T WANT TO TAKE PUBLIC TRANSIT BECAUSE OF THE PANDEMIC
AND UBER AND LYFT HAD BEEN TAKING BUSINESS AWAY STEADILY FROM TAXI CAMPS
SO IF YOU DOUBLE THE 8 MILLION, THAT'S 16 MILLION A LOW
YOU KNOW, THE DELTA VARIANT IS GOING TO PLAY A LITTLE FACTOR AND THEN THE SECOND HALF OF THE YEAR
SO IT'S A LARGE NUMBER
WHAT WE DID IS WE INDEPENDENTLY WENT OUT AND WE VIEWED 126 VEHICLES
WE SAT IN THE DRIVES, WROTE DOWN THE LICENSE PLATE NUMBERS, AND THEN WE TRACE THAT BACK TO THE TNCS MONTHLY REPORTS TO MAKE SURE THAT WE WERE CORRECTLY BEING PAID FOR THE TRIPS THAT OCCURRED
THERE WERE SOME FIVE THAT DIDN'T HAVE AN EXACT MATCH THAT WE COULD MATCH
YOU KNOW, THREE OF THOSE
WE WEREN'T REALLY SURE MAYBE A DIGIT WAS OFF
WE DON'T KNOW IF IT'S OUR MISTAKE OR THEIR MISTAKE, BUT NOT THE LESS
THERE WERE A TOTAL OF FIVE AND TWO
THERE WAS NO REASON FOR
SO EVEN IF YOU LOOK AT A 2% VARIANCE IN THE WORST CASE SCENARIO, YOU KNOW, IT'S A SIGNIFICANT CHUNK OF CHANGE ON $16 MILLION
YOU'RE LOOKING AT OVER $300,000 A YEAR, BUT THERE'S A COST AND RISK REWARD, HOW TIGHT YOU WANT THOSE CONTROLS AND HOW ACCURATE YOU WANT TO BE
YOU ALSO WANT TO MAKE SURE THAT SYSTEMATICALLY, IF SOMETHING WERE TO HAPPEN THAT WE'D BE ABLE TO CATCH IT AND WE FOLLOW UP ON THAT
SO WITH THAT, MICHELLE, IF YOU CAN GO TO THE NEXT SLIDE AND I'M GOING TO HAVE DAN CHASE UNMUTE HIMSELF AND TALK THROUGH THE ISSUES, I'M HERE, GLENN
YOU DID SUCH A NICE JOB
I SHOULD JUST LET YOU KEEP GOING
SO GOOD AFTERNOON
I'M DAN CHASE
I'M AN AUDIT MANAGER
SO AS GLENN MENTIONED, WE DID IDENTIFY AN OPPORTUNITY TO IMPLEMENT A CONTROL WHEN THOSE MATCH RATES FALL BELOW A CERTAIN THRESHOLD
SO WHAT HAPPENS IS GT STAFF, GROUND TRANSPORTATION STAFF
THEY SPEND ABOUT 40 HOURS MONTHLY AND THEY WRITE DOWN LICENSE PLATE NUMBERS, AND THEN THOSE ARE TRACED INTO THE TNC REPORTS, UBER LYFT REPORTS
SO THAT IS A GREAT FIRST STEP WHEN YOU'RE MEASURING THE DIFFERENCE FROM TWO INDEPENDENT SOURCES
BUT THERE'S REALLY NO FORMAL PROCESS TO REALLY RESEARCH AND UNDERSTAND WHAT IS CAUSING THE DIFFERENCES
AND THE CONCERN THAT WE HAD IS THAT THE VARIANCE WILL INCREASE AND WE WON'T HAVE A PROCESS TO REALLY UNDERSTAND WHY
SO WE'VE MADE TWO RECOMMENDATIONS, I BELIEVE, ARE ON THE NEXT SLIDE, AND THEN BEFORE WE JUMP TO THE NEXT SLIDE
ONE THING I WOULD WANT TO ADD IS ALTHOUGH THE GROUND TRANSPORTATION IS DOING THIS MATCH THAT DAN TALKED ABOUT, THERE ARE SOME SOME VERY VALID REASONS, BUT THEY ARE GETTING ABOUT A 90% MATCH RATE OR THE 88% TO 90%
SO WHEN DAN TALKS THROUGH THE RECOMMENDATIONS ON PART OF IT IS ALSO TIGHTENING UP THE MATCH RATE BECAUSE YOU CLEARLY WANT TO DO SOMETHING WITH THE EXCEPTIONS, YOU FIND OVER A CERTAIN THRESHOLD
LIKE I SAID, THE RISK REWARD, BUT TO WHERE POSSIBLE, WE ALSO WANT TO TIGHTEN UP THAT MATCH RATE
SO YOU DON'T HAVE AS BIG A POOL TO HAVE TO RESEARCH
BACK TO YOU, DAN, TO THE NEXT SLIDE
THANKS, GLENN
SO WE HAD TWO RECOMMENDATIONS
THE FIRST IS TO REALLY UNDERSTAND REASONS, THEN ADAPT PROCESSES TO MINIMIZE THEM
AS GLENN MENTIONED, ONE OF THE REASONS THAT THERE ARE DIFFERENCES BETWEEN THE MANUAL OBSERVATIONS AND THE REPORTS IS FROM A TIMING STANDPOINT, RIGHT
I BELIEVE NOW WE GO OUT
I THINK THEY'RE ONE OR TWO HOUR BLOCKS THAT THOSE MANUAL OBSERVATIONS ARE MADE
IF WE WERE TO EXPECT EXPAND THAT TO AN EIGHT HOUR BLOCK
IN THEORY, YOU'D HAVE LESS DIFFERENCES FOR TIMING
THAT'S JUST AN IDEA
BUT THE SECOND IS TO ESTABLISH THAT TOLERANCE THAT, YOU KNOW, IF THAT MATCH RATE STARTED GETTING WIDER, THERE WOULD BE A FORMAL PROCESS THAT WOULD BE TRIGGERED TO UNDERSTAND WHY, WHY THAT'S OCCURRING AND TO REALLY IDENTIFY IF THERE'S ANYTHING SYSTEMIC THAT NEEDS TO BE MITIGATED AND REALLY RESEARCHING IT
I MEAN, THAT COULD MEAN THAT IT WOULD FINANCIALLY BENEFIT THE PORT, BUT IT ALSO COULD MEAN THAT THE TNCS COULD BENEFIT THEM AS WELL
SO REALLY ADVOCATING FOR JUST UNDERSTANDING WHY THERE'S THAT DIFFERENCE WHEN IT EXCEEDS A CERTAIN THRESHOLD
SO THAT'S ALL I HAVE
GLAD I'LL TURN IT BACK TO YOU
AND I THINK WE HAVE SOME GROUND TRANSPORTATION FOLKS HERE TO ANSWER QUESTIONS AS WELL
WELL, OUR TRANSPORTATION FOLKS CAN TALK ABOUT
WE'LL HAVE THEM TALK ABOUT THEIR MANAGEMENT RESPONSE IN A SECOND
BUT I BELIEVE IT'S A 1 HOUR WINDOW, AND JEFF AND TEAM CAN EXPAND ON THAT
THE BIGGEST REASON IS FOR THE VARIANCE OF
ONE OF THE KEY REASONS IS, YOU KNOW, AT ABOUT, SAY, LOOKING AT FROM 11:00TO 12:00 AS FAR AS THAT, EXIT THE SYSTEM AT 11:59 OR 11:58, OR THAT THAT TIME FRAME MIGHT SHOW UP IN THE NEXT HOUR ON THE REPORT THAT SENT ACROSS JUST BECAUSE OF THE TIMING DIFFERENCE
SO IN THE REPORT, THAT SET ACRASS, IF YOU EXPAND IT BY JUST A TEN MINUTES, MAYBE YOU'LL GET A BETTER MATCH RATE
IT'S JUST A THEORY, BUT IT'S SOMETHING THAT THE GROUND TRANSPORTATION WILL ADDRESS
SO, LAUREL, JEFF AND TEAM
IF YOU GUYS COULD UNMUTE YOURSELVES AND MICHELLE, THE NEXT SLIDE, AND THEY CAN TALK A LITTLE BIT ABOUT MANAGEMENT RESPONSE BEFORE WE OPEN IT UP FOR QUESTIONS
I APPRECIATE IT
GOOD AFTERNOON
THE MEMBER GERHKE AND OTHER MEMBERS ON THE CALL
SO MY NAME IS [inaudible 00:11:34] YOU'RE ARE BREAKING UP A LOT
YOU MAY WANT TO TRY TO TURN OFF YOUR CAMERA
THAT MIGHT BE HELPFUL
GREAT
I APOLOGIZE FOR THAT
OH, YOU'RE BETTER NOW
IS THAT BETTER? YEAH
SO AGAIN, GOOD AFTERNOON
JUST WANTED TO
FIRST OF ALL, THANK THE AUDIT TEAM
WE ALWAYS HAVE OPPORTUNITIES FOR IMPROVEMENTS WITH THESE AGREEMENTS
IT'S IMPORTANT TO REMEMBER THAT WE ENTERED INTO THIS ARRANGEMENT OF THE TNCS IN 2016 AS A PILOT PROGRAM, AND AS PART OF THAT, IT'S IMPORTANT TO UNDERSTAND THAT WE RELY ON SELF REPORTED DATA
AND THIS ISN'T UNIQUE TO TNC
THIS IS ACROSS THE BOARD WITH OTHER AGREEMENTS THAT WE HAVE IN PLACE, BOTH IN THE GROUND TRANSPORTATION ARENA, BUT ACROSS THE AIRPORT AS WELL
WHAT WE DID DIFFERENTLY WITH TNC, AND IT'S ACTUALLY VERY UNIQUE IS WE REQUIRE QUITE A BIT OF DATA AND INFORMATION, NOT ONLY IN A MONTH END REPORT ON ALL ACTIVITIES THAT OCCURS ON AIRPORT PROPERTY, REALLY CORRESPONDING TO A GLENN MENTIONED THE GEOFENCE THAT'S JUST BASICALLY A BORDER AROUND THE AIRPORT, BUT ALSO ON A NEAR REAL TIME BASIS
SO THEY SEND US A NEAR REAL TIME DATA FEED, WHICH IS VERY UNIQUE
AND WHAT OUR ICT BUSINESS INTELLIGENCE OPERATION STAFF HAS DONE HAS TAKEN THAT NEAR REAL TIME INFORMATION AND DEVELOP AN APP THAT IS DAN TALKED ABOUT
WE USE TO DO WHAT WE CALL SPOT CHECKS
AND IN ESSENCE, THERE'S 40 HOURS IN A MONTH WHERE GROUND TRANSPORTATION STAFF WILL STAND IN THE PICK UP AREA AND TRACK ACTIVITY
AND WHAT YOU SEE IN THE AUTO REPORT IS JUST THE MATCHING OF THAT ACTIVITY THAT WE RECORD VERSUS THE MONTH END REPORT THAT WE GET SENT TO US BY THE TNCS AS IDENTIFIED IN 2018 AUDIT
THERE ARE REASONS WHY MATCH RATE MAY NOT BE, AND AS GLENN INDICATED, ONE OF THEM HAS TO BE WITH TIMING, WE MAY RECORD A TRANSACTION AT, LET'S SAY, 11:59 A.M.
WE MAY NOT GET THE DATA ON THAT TRANSACTION THAT SENT TO US FROM THE TNC, MAYBE AT TWELVE OR 01:00 P.M.
AND WHEN YOU LOOK AT AN HOUR BLOCK BETWEEN ELEVEN AND TWELVE, IT MAY NOT MATCH THEN
BUT WHEN YOU LOOK AT A DAILY MATCH AND YOU EXPAND FOR THE ENTIRE DAY, IT MAY MATCH
AND SO THAT'S WHY YOU SEE IN OUR RESPONSE
WHEN YOU LOOK AT DAILY MATCHES, IT'S OFTENTIMES MUCH HIGHER AND CLOSER TO
BUT THERE'S ALSO ANOTHER REASON THAT'S IDENTIFIED, WHICH IS HOW TO DO WITH LICENSE PLATES
SO THERE'S A LOT OF TURNOVER IN THE TNC FLEET, A LOT OF NEW DRIVERS THAT COME INTO THE FLEET, THEY MAY HAVE TEMPORARY LICENSE PLATE THAT THEY REGISTER WITH THE TNC ONCE THEY GET THEIR PERMANENT PLATE
LET'S SAY THEY COME IN AND DO A PICK UP UNDER THE PERMANENT PLATE, BUT HAVEN'T UPDATED THAT NEW PLATE WITH THE TNC, AND THEY SEND US THE INFO AS A TEMPORARY PLATE
WE MAY HAVE A MISMATCH
SO THERE'S JUST VARIOUS REASONS WHY IT MAY NOT BE WITH THAT SAID, WE COMPLETELY AGREE THAT THERE'S ROOM FOR IMPROVEMENT IN TERMS OF SETTING A THRESHOLD
SO AS WE MONITOR MATCH RATES, IF IT DROPS BELOW A CERTAIN THRESHOLD, WE DO ADDITIONAL RESEARCH, WHICH WE WILL FURTHER DEFINE AS IDENTIFIED IN THE REPORT BY THE END OF OCTOBER
AND WE'LL WORK WITH THE AUDIT TEAM AND OUR BUSINESS INTELLIGENCE TEAM, ICT AND DEFINING THAT PROCESS
AND THAT THRESHOLD
THE MOST IMPORTANT THING TO SAY IS IS THAT WE ARE VERY CONFIDENT INFORMATION THE DATA AND THE TRIP ACTIVITY AND THE MONEY THAT WE RECEIVED FROM THE TNCS
SO DESPITE THE SUPPLEMENTAL CHECK THAT WE DO, THAT ISN'T ON MATCHES, WE HAVE BEEN VERY CONFIDENT IN THEIR REPORTING OF ACTIVITY TO US
SO I'LL STOP THERE AND BE HAPPY TO ANSWER ANY QUESTIONS
GREAT
LIKE TO OPEN UP TO COMMITTEE MEMBERS AND SEE IF YOU HAVE ANY QUESTIONS
SO I'M GOING TO GO AHEAD AND END THIS SHOW AND STOP SHARING REALLY QUICKLY BEFORE WE START CALLING MEMBERS AND THEN BEGINNING WITH COMMISSIONER CALKINS FOR QUESTIONS
SO I THINK PROBABLY A QUESTION FOR JEFF
MAYBE WHEN WE LOOK AT THE DISCREPANCIES, IT'S NOT A HUGE NUMBER
BUT I'M ALSO KNOWING THAT IN ANY LARGE GROUP OF PEOPLE, THERE ARE GOING TO BE SOME BAD ACTORS WHO ARE WILLING TO SKIRT THE SYSTEM IF THEY CAN FIND A WAY TO DO IT
MY CONCERN IS IS THERE A POSSIBILITY THAT THE DISCREPANCY HERE IS BECAUSE SOMEBODY HAS FIGURED OUT A WAY TO TO SLIP THROUGH? AND IF THAT'S THE CASE, THEN WE WOULDN'T WANT THAT TO GET CONTAGIOUS
RIGHT
SO, I MEAN, THIS IS EFFECTIVELY AN ENFORCEMENT MECHANISM, AND THE MORE LIKELY THAT SOMEONE THINKS THEY'RE GOING TO GET CAUGHT, THE LESS LIKELY IT IS THAT THEY'LL TRY TO EVADE THE PAYMENT IN THE FIRST PLACE
SO JUST WANTING TO MAKE SURE IS THIS ROBUST ENOUGH, CAN WE WITH THE INTERNAL AUDIT RECOMMENDATIONS, CAN WE TIGHTEN IT DOWN A LITTLE BIT MORE TO ENSURE THAT THIS THIS PROBLEM DOESN'T GET WORSE OVER TIME? YES
GOOD POINT
IT'S IMPORTANT TO REMEMBER THAT OUR AGREEMENT IS WITH THE COMPANY THEMSELVES
SO WHEN WE TALK ABOUT A BAD ACTOR, NO, WE'RE NOT GETTING PAID DIRECTLY BY A TNC DRIVER
WE'RE GETTING PAID BY A TNC COMPANY THAT JUST RECORDS THE NUMBER OF TRIPS THAT OCCUR
SO IT'S OUR DUTY TO MAKE SURE THAT THE ACTOR IN THIS CASE FOR US IS THE COMPANY THAT'S SENDING US ACCURATE INFORMATION
SO THIS GETS BACK TO A CHALLENGE THAT WE HAVE ELSEWHERE IN THE SYSTEM IS JUST MAKING SURE WE'RE ABLE TO TRACK ACTIVITIES
TECHNOLOGY IS A BIG STEP, A BIG FACTOR IN THAT
WE HAVE WHAT WE CALL AVI SYSTEM, AUTOMATED VEHICLE IDENTIFICATION SYSTEM
IT'S VERY CHALLENGING TO APPLY AVI SYSTEM
IT INCLUDES AN RFID RADIO FREQUENCY IDENTIFICATION TAG TO A VEHICLE, WHICH WE DON'T REALLY WANT TO DO WITH A PRIVATELY OWNED VEHICLE, BECAUSE A TNC VEHICLE CAN ALSO OPERATE PRIVATELY, AND WE DON'T WANT TO TRACK THAT ACTIVITY THROUGH AIRPORT PROPERTY
SO WE'VE SHIED AWAY FROM AVI
BUT THERE WE'RE RESEARCHING OTHER TECHNOLOGIES THAT MIGHT BE OUT THERE, INCLUDING THERE'S OTHER THIRD PARTY COMPANIES THAT MIGHT HELP US IN TRACKING
PART OF IT IS JUST INVESTMENT IN OUR PART, TOO
WE MAY WORK WITH OUR ICT AND THE DATA THAT WE DO RECEIVE FROM THE TNC COMPANIES IN DOING MORE ROBUST TRACKING OF ACTIVITY ON PROPERTY
BUT REALLY, IT GETS BACK TO ENSURING THAT WE HAVE WE'RE CONFIDENT IN OUR RELATIONSHIP WITH THE COMPANY ITSELF BECAUSE WE DON'T TYPICALLY SEE BECAUSE WE DON'T HAVE THAT RELATIONSHIP WITH THE DRIVER
IT'S MORE OF THAT CONFIDENCE
BUT THERE ARE STEPS THAT WE'RE TAKING IN TERMS OF RESEARCHING OTHER TECHNOLOGIES THAT ARE OUT THERE, AND THAT'S PART OF THE IMPROVEMENT THAT WE'RE CONTINUOUSLY MAKING WITH THIS PROGRAM
IT'S A LEARNING EXPERIENCE FOR ALL AIRPORTS WITH TNC ACTIVITY
THANK YOU
IT IS
I THINK I MENTIONED YOU, GLENN, IN OUR PRE BRIEFING
MY I THINK WE'RE CONTINUING TO WORK ON THESE ARE SOME SHORT, MEDIUM TERM GOALS FOR ME
I HAVE AN INTEREST IN LONGER TERM AND CAPTURING A LARGER SWATH OF THE TOTAL VEHICLES THAT COME TO AND FROM THE AIRPORT
AND THAT
AND SO THERE MIGHT BE A A HIGHER ORDER SYSTEM THAT IS HELPING US TO TRACK ALL THE SYSTEMS AND SO IN THE MEANTIME, I WANT TO MAKE SURE WE'VE FIXED ANY PROBLEMS WE'VE IDENTIFIED HERE, BUT I THINK IT BE GREAT IN THE LONGER TERM FOR US TO NOT SIMPLY BE CHARGING TNCS AND TAXES AND SHUTTLES, BUT ALSO THE EVERYONE ELSE WHO'S USING OUR OUR DRIVES TO COME AND GO FROM THE TWO
FORGIVE MY EDITORIALIZING
THANK YOU, COMMISSIONER CALKINS MOVING TO MEMBER GEHRKE
I DON'T HAVE ANY ADDITIONAL QUESTIONS
THANK YOU
THANK YOU, COMMISSIONER BOWMAN
GREAT
THANK YOU
I JUST HAVE A COUPLE OF QUESTIONS
SO, JEFF, WE USE AND COMMISSIONER CALKINS FEEL FREE TO JUMP IN HERE AS WELL
WE USE RFID TECHNOLOGY AT OUR INTERNATIONAL MARINE CARGO TERMINAL
HAVE YOU REACHED OUT TO THAT LINE OF BUSINESS TO SEE IF THERE'S SOME LESSONS LEARNED BECAUSE WE REQUIRE THE TRACKERS TO USE RFID? WE HAVE ACTUALLY FOR A NUMBER OF YEARS NOW IN ORDER TO ACCESS THE TERMINAL, IT'S OUR WAY TO TRACK WHETHER OR NOT THEY ARE MEETING OUR CLEAN AIR STANDARDS BY HAVING AN ENGINE THAT HAS 2007 OR LATER
YEAH, TO ANSWER THAT DIRECTLY
NO, WE HAVEN'T REACHED OUT
WE CERTAINLY COULD
WE DO HAVE EXPERIENCE, AS MENTIONED, WITH RADIO FREQUENCY I'D WITH OUR OTHER GT MODES
SO, AS YOU'RE AWARE, ALMOST EVERY OTHER MODE TAXIS, SHUTTLES HAVE RADIO FREQUENCY TAGS
SO WE CERTAINLY HAVE EXPERIENCE WITH THAT WITHIN THE GT SYSTEM ITSELF AT THE AIRPORT
AGAIN, IT'S JUST REALLY CHALLENGING WITH PRIVATELY OWNED VEHICLES
IT'S CERTAINLY AN AREA WE COULD EXPLORE AND ACTUALLY MANDATE WE COULD AND REQUIRE THAT THOSE VEHICLES
THE PROBLEM NOT ONLY IS JUST ON THE DIFFERENCE IN USE BETWEEN A COMMERCIAL ACTIVITY, WHICH THROUGH A TNC VERSUS OUR PRIVATE ACTIVITY, BUT IT'S ALSO THE TURNOVER OF THOSE VEHICLES
THERE'S SO MANY TNT DRIVERS AND VEHICLES
SO THOSE ARE JUST SOME CHALLENGES THAT WE FACE, BUT WE CERTAINLY COULD LOOK INTO THAT MORE
OKAY
YEAH
I CERTAINLY WOULD LIKE US TO LOOK INTO IT MORE
I APPRECIATE THE SOMEWHAT MORE UNIQUE CHALLENGE WITH THE FACT THAT THERE IS TURNOVER
BUT AS YOU JUST SAID IN YOUR EARLIER COMMENTS, OUR RELATIONSHIP ISN'T WITH THE TNC DRIVERS
OUR RELATIONSHIP ARE WITH THE TWO COMPANIES
AND SO, MANDATING, THAT THE COMPANIES, THEY CAN FIGURE OUT THE TECHNOLOGY THEMSELVES
WE KNOW RFID WORKS
I'M A LITTLE CONFUSED
WE DON'T HAVE TO GO INTO IT NOW
WHY? AGAIN, WE HAVE THIS ON OUR TRUCKS
WE HAVE IT ON THE TAXES
THOSE ARE COMMERCIAL VEHICLES
BUT I WOULD BE FAIRLY CONFIDENT THERE'S A WAY FOR THAT TO BE SHUT OFF WHEN THEY'RE NOT
I MEAN, THE ONLY PURPOSE, FOR EXAMPLE, ON THE RING TERMINAL IS WHEN THEY ACCESS THE TERMINAL
WE'RE NOT TRACKING THE MOVEMENT OF A DRAINAGE TRUCK OUTSIDE OF THE PORT
AND SO I WOULD THINK THAT WE WOULD BE ABLE TO HAVE A SIMILAR SYSTEM
WE DON'T WANT TO TRACK THE DRIVERS OUTSIDE OF THE AIRPORT
WE JUST WANT TO TRACK THEM WHEN THEY'RE COMING IN AND OUT
I WOULD LOVE FOR US TO EXPLORE AGAIN, TAKE SOME LESSONS, LEARN FROM THE MARINE SIDE OF THE HOUSE AND SEE WHAT WE CAN DO ABOUT APPLYING THAT SYSTEM TO THE AIRPORT
AND THEN THE SECOND THING I'M CURIOUS ABOUT, WHAT ARE YOU ABLE TO TELL US ABOUT THE BEST PRACTICES AT OTHER AIRPORTS? WHAT SYSTEMS HAVE BEEN USED THAT ARE DOING, TRACKING THE ARRIVALS AND DEPARTURE OF THE TNCS? YEAH
SO IN TERMS OF WE ARE ACTUALLY OFTEN LOOKED TO AS A BEST PRACTICE, THE INFORMATION THAT WE RECEIVE
SO AGAIN, POINTING BACK TO THE INITIATION OF OUR PILOT PROGRAM IN 2016, WE IMPLEMENTED STANDARDS ABOVE THOSE ACROSS THE AIRPORT IN ACTIVITY, THAT INFORMATION AND DATA THAT SENT TO US, INCLUDING A REAL TIME, NEAR REAL TIME DATA FEED
SO WHEN WE LOOK AT OTHER AIRPORTS, EVEN NOW, IT IS SIMPLY AN END A MONTH REPORT ON ACTIVITY AND THEN A CHECK FROM THE TNCS, AND THEN THE PROCESS THAT WE'VE IMPLEMENTED THE SUPPLEMENTAL PROCESS, WHICH IS THIS SPOT AUDIT THAT'S IDENTIFIED IN THIS AUDIT THAT WE DO BY OUR OWN STAFF IS AGAIN, ANOTHER SUPPLEMENTAL CHECK THAT WE DO THAT OTHER AIRPORTS DON'T DO
SO WE'LL CONTINUE TO DO THAT
WE TALK TO OTHER AIRPORTS CONSTANTLY
ONE OF THE BENEFITS WE HAVE OF THESE GOOD RELATIONSHIPS WITH THE AIRPORTS IS TO KNOW WHAT THEY DO
BUT FROM MY EXPERIENCE, WHAT WE'VE BEEN DOING IS A BEST PRACTICE
BUT WE'LL CONTINUE TO LOOK AT THAT
OKAY
GREAT
THAT'S REALLY HELPFUL
THANK YOU
SO I DON'T REALLY HAVE ANY OTHER QUESTIONS
AGAIN, JUST WOULD LOVE MORE INFORMATION FROM THE GT STAFF ABOUT USING RFID AND AGAIN LEARNING FROM THE MARINE SIDE OF THINGS
SO ONE WAY, IF YOU COULD JUST REPORT BACK AT SOME POINT, I'LL LEAVE IT UP TO GLENN TO FIGURE OUT WHEN THAT MIGHT BE
THAT WOULD BE WONDERFUL
GREAT
ANY OTHER QUESTIONS, MICHELLE, YOU WANT TO CALL THROUGH THE ROLL ONE MORE TIME? YES, WE WILL CALL THROUGH THE ROLE AGAIN WITH COMMISSIONER CALKINS
NONE FOR ME
THANK YOU, MEMBER GEHRKE
NONE FOR ME
THANK YOU
THANK YOU, COMMISSIONER B0WMAN
NO OTHER QUESTIONS ON THIS ITEM
ALRIGHT, WE WILL MOVE ON OR DO WE HAVE COMMISSIONER CHO READY TO JOIN US? I'VE JUST TEXTED HIM TO LET HIM KNOW TO JOIN
SO LET'S GIVE HIM A COUPLE OF SECONDS HERE TO CALL IN
I KNOW HE IS ON THE READY
ALRIGHT
AND MICHELLE, WHILE YOU'RE DOING THAT I HEARD THAT THE EXTERNAL WEBSITE STREAM IS NOT WORKING
I DON'T KNOW IF THAT'S ISSUE THE DEAN HAS TO TRIP DEAL WITH OR NOT
YES, WE ARE AWARE DEAN IS WORKING ON IT RIGHT NOW IN THE BACKGROUND
SO WE HOPE TO HAVE THAT UP HERE SHORTLY
WAIT, GO AHEAD
THANK YOU
I DO SEE COMMISSIONER CHO HAS JOINED US
AWESOME
WELCOME, COMMISSIONER CHO
SO AT THIS TIME HI, COMMISSIONER CHO HAS JOINED US AND HE'S GOING TO BE HERE FOR THE REMAINDER OF THE MEETING SO THAT WE DON'T EXCEED OUR CORE LIMITS
I'LL BE EXITING THE MEETING AT THIS TIME AND COMMISSIONER CALKINS WILL PRESIDE SO THANK YOU VERY MUCH AND I WILL LEAVE NOW
THANK YOU, MISTER
I'LL VIRTUALLY GRAB THE GAVEL FROM YOU AND WE CAN PROCEED
OKAY
MOVING TO OUR NEXT
OH, I SEE
WE'RE GOING TO DO THE APPROVAL OF THE MINUTES NEXT
SO ARE THERE ANY CORRECTIONS TO THE MINUTES, COMMISSIONER CHO? NO, NOT FOR ME
AND YOU MEMBER GEHRKE NONE FOR ME
ALRIGHT
CAN I HAVE A MOTION AND A SECOND TO APPROVE THE MINUTES? I WILL MOTION TO APPROVE THE MINUTES AND I'LL SECOND THAT AND I'LL CALL THE ROLL FOR THE VOTE
COMMISSIONER CALKIN
HI
THANK YOU, COMMISSIONER CHO
BYE
THANK YOU
YOU HAVE T AS IN ZERO NOTES FOR THIS ITEM
TERRIFIC
THANK YOU SO MUCH
OUR NEXT ORDER OF BUSINESS IS EXTERNAL AUDITS PRESENTERS
YES, MR CALKINS
JUST A NOTE FOR THE RECORD THAT THE MINUTES ARE APPROVED
OH, SORRY ABOUT THAT
OFFICIALLY NOW
ALRIGHT
SO PRESENTERS FOR THE EXTERNAL AUDITS, PLEASE UNMUTE YOURSELVES
THE COMMITTEE MEMBERS MAY USE THE HAND RAISING TOOL TO INDICATE THAT WE WISH TO SPEAK OR ELSE I'LL JUST CALL FOR QUESTIONS AT THE CONCLUSION OF THE PRESENTATION
OUR PRESENTERS FROM THE STATE AUDITOR'S OFFICE HAVE THE FLOOR
GLENN, WOULD YOU MIND INTRODUCING THEM? SURE
ANGELA, MADELINE AND JOE WILL BE TALKING TODAY
THEY'RE GOING TO BE NAMES SHOW UP ON THE SCREEN
SO RATHER THAN READ THEM ALL OFF, BUT ESSENTIALLY COMMISSIONER CALKINS AND CHO THIS IS THE OPENING MEETING
THIS IS A KICK OFF OF STATE AUDIT FOR THE YEAR SO THEY'LL BE TALKING ABOUT THEIR PRESENTATION, WHAT THEY'RE GOING TO LOOK AT THE DETAILS ABOUT HOW THEY GO ABOUT THAT, MICHELLE, IF YOU COULD PULL UP THE PRESENTATION FOR THEM AND MADELINE, JOE AND ANGELA, AS YOU WHEN READY TO ASK HER TO MOVE TO THE NEXT SLIDE
MICHELLE, I'LL BE HAPPY TO DO THAT FOR YOU, JOE
YOU HAVE THE FLOOR
THANK YOU, GLENN, AND THANK YOU COMMITTEE MEMBERS FOR THE OPPORTUNITY TO PRESENT TODAY
AS GLENN SAID, WE'RE HERE TO TALK ABOUT OUR ACCOUNTABILITY AUDIT
AND AS GLENN SAID, I'M JON SEDANS
I'M THE AUDIT MANAGER FOR A TEAM CENTRAL KING COUNTY HERE IN SEATTLE, AND I'M HERE WITH MADELINE FROST-SHAFFER, ASSISTANT AUDIT MANAGER, AND SHE'S RETURNING THIS YEAR AS THE SUPERVISOR OF THE AUDIT
AND THEN ANGELA FUNAMARI IS THE AUDITOR IN CHARGE, AND SHE IS RETURNING FOR THE SECOND YEAR AS THE IN CHARGE FOR THE AUDIT
SO IF WE GO TO THE NEXT SLIDE, AS I SAID, THIS IS OUR ENTRANCE OR OUR ACCOUNTABILITY AUDIT AND WE PERFORM FINANCIAL STATEMENT, FEDERAL SIGNAL AUDIT AND ACCOUNTABILITY AUDIT
OBVIOUSLY, WE KNOW FOR THE PORT OF SEATTLE YOU FINANCIAL STATEMENT AND SIGNAL AUDIT IS PERFORMED BY MOSS ADAMS, AND WE'LL BE REVIEWING THE WORK THAT THEY'VE DONE
BUT WE WILL BE PERFORMING AN ACCOUNTABILITY AUDIT, AND THAT'S WHERE WE AUDIT FOR COMPLIANCE WITH STATE LAWS, CONTRACTS, AGREEMENTS AND THE PORT ON POLICIES AND PROCEDURES
AND WE ALSO AUDIT TO DETERMINE IF THERE'S ADEQUATE SAFEGUARDS OVER PUBLIC RESOURCES
AND WITHIN THIS AUDIT, WE HAVE A PRETTY WIDE SCOPE OF WHAT WE LOOK AT, BUT IT ALL IN ONE WAY OR OTHER TOUCHES ON FISCAL MATTERS
AND WE ALSO PROVIDED OUR ENTRANCE DOCUMENT IN ADDITION TO THIS SLIDE SET, AND THERE'S SOME ADDITIONAL INFORMATION THERE FOR YOU
SO PLEASE ASK US ANY QUESTIONS AT ANY TIME ABOUT ANYTHING WE DO HAVE IN THE PRESENTATION, AND ANGELA WILL TALK ABOUT THIS ALSO, WE ARE AT THE VERY BEGINNING STAGES OF THE AUDIT, SO WE HAVEN'T COMPLETED OUR PLANNING YET, BUT WE WILL BE UPDATING YOU BEYOND AND LIAISON ONCE WE DO ARRIVE AT THE SPECIFIC AUDIT AREAS THAT WILL BE FOCUSING ON IN THIS AUDIT
AND WITH THAT, IF WE COULD GO TO THE NEXT SLIDE AND I'LL TURN IT OVER TO ANGELA
THANK YOU, JOE
AS JOE MENTIONED EARLIER, JUST NOW, WE WILL BE PERFORMING THE ACCOUNTABILITY AUDIT THAT WILL COVER FISCAL YEAR 2020
FOR THIS AUDIT, WE UTILIZE A RISK BASED AUDIT APPROACH IN SELECTING AREAS FOR FURTHER REVIEW
SO AS PART OF THIS PROCESS, WE COMPLETE A NUMBER OF AUDIT PLANNING STEPS THAT INCLUDE CONDUCTING RISK ASSESSMENTS WITH KEY MEMBERS OF THE PORT, REVIEWING MINUTES OF THE GOVERNING BODY, CONDUCTING ANALYTICAL PROCEDURES, REVIEWING PRIOR AUDIT RESULTS, AND ASSESSING AREA OF COMMON RISK FOR THE PORTS ACROSS THE STATE
AT THIS TIME, LIKE JOE MENTIONED, WE DO NOT HAVE OUR AUDIT SCOPE IDENTIFIED
HOWEVER, WE WILL INFORM THE MANAGEMENT TEAM AFTER WE COMPLETE OUR PLANNING PROCEDURE AND THEN THE NEXT SLIDE WE HAVE IS THE WORK OF OTHER AUDITORS
SO AS JOE MENTIONED, A LITTLE BIT EARLIER, THE FINANCIAL STATEMENT AUDIT WAS PERFORMED BY MOSS ADAMS, AND IT IS PROFESSIONAL STANDARDS THAT WE CONSIDER THE WORK PERFORMED BY OTHER AUDITORS
SO DURING THE PLANNING STEP STAGES OF OUR AUDIT, WE WILL REVIEW THEIR WORK AND DETERMINE IF ANYTHING CAUSES CONCERN ABOUT ITS QUALITY
ACCOUNTABILITY AUDITS
THEY DIFFER IN SCOPE FROM FINANCIAL STATEMENT AND SINGLE AUDITS
THE FOCUS OF ACCOUNTABILITY IS TO EVALUATE THE COMPLIANCE WITH LAWS, REGULATIONS, AND THE GOVERNMENT'S POLICIES AS WELL AS EVALUATE THE GOVERNMENT'S CONTROLS OVER SAFEGUARDING PUBLIC RESOURCES
SO DUE TO THE OBJECTIVES OF THE ACCOUNTABILITY AUDITS, IF DURING OUR AUDIT, WE EXAMINE SOME OF THE SAME AREAS PREVIOUSLY COVERED, WE WILL ENSURE WE PROVIDE A DIFFERENT APPROACH AND WILL NOT DUPLICATE WORK ALREADY PERFORMED
NEXT IS STAYING CONNECTED
I'M SORRY IF I CAN HAVE THE NEXT SLIDE, PLEASE
YES, THANK YOU
SO AN IMPORTANT PART OF THE OFFICE IS CONTINUOUS COMMUNICATION BETWEEN OUR AUDIT STAFF AND YOURS
THERE ARE A NUMBER OF WAYS THAT WE STRIVE TO STAY CONNECTED THROUGHOUT THE AUDIT PROCESS, OF WHICH WE HAVE HIGHLIGHTED THE KEY METHODS FOR YOU TODAY IT IS PRE AUDIT MEETINGS
IT IS NEVER TOO EARLY
PREPARE FOR AN UPCOMING AUDIT ONE WAY TO DO THIS IS TO REQUEST A PRE AUDIT MEETING WITH US WHERE WE SHARE INFORMATION THAT MAY BE HELPFUL FOR THE UPCOMING AUDIT, INTRODUCE YOU TO OUR TEAM AND PROVIDE SOME EXTRA LEAD TIME ON MAKING SURE YOUR QUESTIONS ARE ANSWERED AND RECORDS ARE READY FOR AUDIT
WE ALSO USE THIS LEAD TIME TO SHARE A PREPARED BY CLIENT OR PBC LIST WITH YOU, WHICH WILL PROVIDE AN ADVANCED LISTING OF ITEMS NEEDED FOR THE UPCOMING AUDIT AT THE START OF OUR AUDIT
WE WILL ALSO PROVIDE AN ENGAGEMENT LETTER TO BE SIGNED BY OUR OFFICE AND YOURS
THIS LETTER OUTLINES THE UPCOMING AUDIT AND EXPECTATIONS FOR EACH PARTY, AND THIS IS A HELPFUL TOOL FOR YOU TO BE NOTIFIED OF WHAT TO EXPECT DURING THE AUDIT PROCESS
RISK ASSESSMENTS ARE COMMONLY CONDUCTED EARLY ON IN THE PLANNING STAGES OF THE AUDIT
WE REQUEST MEETINGS WITH SEVERAL MEMBERS OF MANAGEMENT AND THE GOVERNING BODY TO CONDUCT RISK ASSESSMENTS
THESE MEETINGS ARE VERY IMPORTANT FOR US TO MEET ONE ON ONE AND BETTER UNDERSTAND YOUR OBSERVATIONS AND ANY RISK THAT WE SHOULD BE AWARE OF FOR THE PORT WEEKLY STATUS MEETINGS IS ONE OF OUR MOST IMPORTANT TOOLS FOR KEEPING YOU UP TO DATE
AS EARNING SUGGESTS, THIS IS A REOCCURRING MEETING WITH AUDIT LIAISON TO PROVIDE AN OVERVIEW OF THE AUDIT
IT'S A GREAT OPPORTUNITY TO DISCUSS WHAT HAS BEEN COMPLETED, WHAT IS STILL IN PROCESS OR NOT YET STARTED, AND DISCUSS ANY QUESTIONS OR CONCERNS AS THEY ARISE IN THE AUDIT ON A PROCESS
NOW, AS WE NEAR THE COMPLETION OF THE AUDIT, WE WILL ALSO REQUEST ASSIGN MANAGEMENT REPRESENTATION LETTER THAT CONFIRMS REPRESENTATIONS MEET TO US BY THE PORT
THESE REPRESENTATIONS ARE IMPORTANT TO ENSURING OUR AUDIT
CONSIDER ALL INFORMATION AND THAT NO INFORMATION WAS HELD FROM OUR STAFF TO YOUR KNOWLEDGE
AND LASTLY, WE ARE COMMITTED TO ENSURING YOU HAVE THE OPPORTUNITY TO HEAR DIRECTLY FROM US ON THE RESULT OF YOUR AUDIT
WE WILL WORK WITH MANAGEMENT TO SCHEDULE AN EXIT CONFERENCE, EXIT CONFERENCE MEETING, AND INVITE ALL GOVERNING BODY MEMBERS TO ATTEND OUR REPORT OUT
NOW, PLEASE NOTE THAT IF A QUORUM OF GOVERNING BODY MEMBERS PLANS TO ATTEND, THE PORT IS RESPONSIBLE FOR ENSURING THE OPEN OPEN PUBLIC MEETINGS ACT REQUIREMENTS ARE SATISFIED
AND NEXT WE HAVE IS THE LEVEL OF REPORTING
IF THERE ARE ANY RECOMMENDATIONS, OUR OFFICE HAS THREE LEVELS OF REPORTING BINDINGS FORMALLY ADDRESS SIGNIFICANT DEFICIENCIES AND MATERIAL WEAKNESSES AND ARE INCLUDED IN THE AUDIT REPORT
DURING THIS TIME, THE PORT WILL BE GIVEN AN OPPORTUNITY TO RESPOND AND RESPONSE WILL BE INCLUDED AS PART OF THE AUDIT REPORT
MANAGEMENT LETTERS
THEY COMMUNICATE CONTROL DEFICIENCIES
HOWEVER, THIS LEVEL IS LESS SIGNIFICANT THAN A FINDING
MANAGEMENT LETTERS ARE FORMALLY COMMUNICATED TO THE GOVERNING BODY AND ARE REFERENCED, HOWEVER, NOT INCLUDED IN THE AUTO REPORT
EXIT ITEMS ADDRESS CONTROLLED DEFICIENCIES THAT HAVE AN INSIGNIFICANT EFFECT ON THE AUDIT OBJECTIVES
THESE RECOMMENDATIONS ARE NOT INCLUDED IN THE AUTO REPORT AND ARE INFORMALLY COMMUNICATED TO MANAGEMENT
AND WITH OUR NEXT SLIDE WE HAVE IS TRACKER
NOW, TRACKER IS A NEW PROGRAM AVAILABLE TO OUR CLIENT PORTAL ON OUR WEBSITE THAT ALLOWS YOU TO ACCESS PRIOR AUDIT RECOMMENDATIONS
THIS IS A GREAT TOOL TO EASILY RECALL PRIOR AUDIT FINDINGS AND MANAGEMENT LETTERS WITHOUT HAVING TO RETAIN THOSE PIER FILES
IN ADDITION, TRACKER ALLOWS YOU TO PROVIDE INTERIM STATUS UPDATES ON ANY PROGRESS MADE CORRECTING THESE ITEMS WHILE THE STATUS UPDATES FOR ALL FINDINGS AND MANAGEMENT LETTERS WILL BE VISIBLE TO YOU AND OUR AUDIT STAFF, IT IS ALSO IMPORTANT TO KNOW THAT STATUS UPDATES FOR AUDIT FINDINGS ARE ALSO VISIBLE TO THE PUBLIC
AS SUCH, THIS TOOL CAN BE UTILIZED TO INCREASE ACCOUNTABILITY TO YOUR CITIZENS AND SHOW THE EFFORTS MADE TO CORRECT THESE THESE ISSUES
AND ON THE NEXT SLIDE, MANY WILL TALK ABOUT SOME IMPORTANT INFORMATION
THANKS ANGELA
SO JUST TO START, WE REQUEST A LOT OF INFORMATION AND DATA THROUGHOUT THE AUDIT PROCESS
IF AT ANY POINT WE REQUEST ANYTHING THAT SENSITIVE OR CONFIDENTIAL NATURE, PLEASE DO LET US KNOW SO WE CAN TAKE THE PROPER STEPS TO SAFEGUARD THAT DATA THROUGHOUT THE AUDIT
WE'VE INCLUDED AN ESTIMATE OF AUDIT COSTS IN YOUR ENTRANCE PACKET ON PAGE TWO
WE ALSO WANT YOU TO BE AWARE THAT WE HAVE A FORMALIZED AUDIT DISPUTE PROCESS IF YOU HAVE ANY CONCERNS DURING THE AUDIT
OBVIOUSLY, AS ANGELA MENTIONED, COMMUNICATION IS VERY IMPORTANT, SO WE DO MEET WITH MANAGEMENT ON A WEEKLY BASIS
FEEL FREE TO EXPRESS ANY CONCERNS DURING THE AUDIT DURING THOSE MEETINGS
IF YOU FEEL YOU'RE NOT BEING HEARD, I WANT TO RAISE IT TO ANOTHER LEVEL
WE DO INCLUDE THE CONTACT INFORMATION OF ADDITIONAL REPRESENTATIVES IN THE AUDIT PACKET ON PAGE THREE AND FOUR
LASTLY, ON THIS SLIDE, JUST A REMINDER THAT STATE LAW REQUIRES GOVERNMENTS TO REPORT ANY KNOWN OR SUSPECTED LOSSES AND FRAUDS TO OUR OFFICE
YOU CAN EASILY DO THAT FROM OUR WEBSITE AND THEN ON THE NEXT SLIDE, A QUESTION WE OFTEN GET IS WHO EXACTLY AUDITS THE STATE AUDITORS
WE'RE OUT THERE AUDITING EVERYONE
SO IT'S AN IMPORTANT QUESTION TO ASK
WE DO RECEIVE AN AUDIT EVERY THREE YEARS BY THE NATIONAL STATE AUDITORS ASSOCIATION
WE'VE INCLUDED A LINK HERE TO THE MOST RECENT PEER REVIEW RESULTS
THE RATING LAST RECEIVED WAS PASSED, WHICH MIGHT NOT SEEM LIKE MUCH, BUT IT IS THE HIGHEST LEVEL OF ASSURANCE THAT AN EXTERNAL REVIEW TEAM CAN PROVIDE ON THE NEXT SLIDE
SO OUR OFFICE IS COMMITTED TO PARTNERING WITH GOVERNMENTS THROUGHOUT THE YEAR
I WANT TO HIGHLIGHT TWO TEAMS THAT ARE AVAILABLE TO ASSIST GOVERNMENTS
THE FIRST IS OUR LOCAL GOVERNMENT SUPPORT TEAM
THEY ASSIST IN TECHNICAL MATTERS THROUGH OUR CLIENT PORTAL
THEY'RE ABLE TO ANSWER QUESTIONS
THEY ALSO PERFORM TRAINING THROUGHOUT THE STATES
A LOT OF THOSE ARE VIRTUAL RIGHT NOW, AND THEY PROVIDE THOSE TRAINING THROUGHOUT THE YEAR, ESPECIALLY ON REPORTING
WE ALSO HAVE THE CENTER FOR GOVERNMENT INNOVATION
THEY ARE VERY INVOLVED IN CREATING A RESOURCE DATABASE
THEY'RE ALWAYS RELEASING NEW TOOLS TO HELP GOVERNMENTS IDENTIFY BEST PRACTICES
THEY'RE ALSO AVAILABLE TO HELP WITH PROCESS IMPROVEMENT, FACILITATIONS, AND HELP GOVERNMENTS BUILD A LEAN CULTURE
WE'VE INCLUDED THEIR CONTACT INFORMATION HERE, AND BOTH OF THESE RESOURCES ARE AVAILABLE AT NO EXTRA CHARGE ON OUR NEXT SLIDE
WE ALSO WANT YOU TO BE AWARE OF SOME EMERGING ISSUES AFFECTING LOCAL GOVERNMENTS
WE RELEASE A QUARTERLY AUDIT CONNECTION
WE'VE INCLUDED A LINK IN YOUR AUDIT PACKET TO THE MOST RECENT ONE THAT WAS PUBLISHED IN APRIL 2021
SOME ARTICLES INCLUDED IN THIS ARE SOME NEW INTERNAL CONTROL CHECKLIST OVER CASH RECEDING AND PAYROLL THAT ARE DESIGNED TO HELP GOVERNMENT CREATE GOOD AND STRONG INTERNAL CONTROLS TO PREVENT FRAUD
THERE'S ALSO AN ARTICLE THAT TALKS ABOUT THE LINK BETWEEN LEAN CULTURES AND LEADERSHIP, AND WE ALSO HAVE AN ARTICLE IN THERE ABOUT OUR 2020 ANNUAL REPORT
AND ON THE NEXT SLIDE THAT WRAPS UP OUR PRESENTATION, WE WANT TO THANK YOU ALL SO MUCH FOR BEING HERE AND LETTING US SHARE OUR AUDIT
WE'RE REALLY EXCITED TO BE BACK AND PERFORMING THIS YEAR'S ACCOUNTABILITY AUDIT AT THIS TIME
IF YOU HAVE ANY QUESTIONS, WE'D BE HAPPY TO ANSWER THEM
THANK YOU, MATTIE, JOE, AND ANGELA, FOR THE PRESENTATION
THAT WAS REALLY HELPFUL
WE'RE GOING TO RUN AROUND THE HORN HERE AND SEE IF ANYBODY HAS QUESTIONS
WE'LL START WITH COMMISSIONER CHO
YEAH
THANK YOU SO MUCH FOR THAT PRESENTATION
I'M WONDERING, IS THE PORTAL THAT YOU GUYS PROVIDE FOR TRANSPARENCY? YOU SAID THAT IS AVAILABLE TO THE PUBLIC AS WELL AS TO ALL YOUR CUSTOMER AGENCY
SO I'M WONDERING, IS IT THE SAME PORTAL OR IS THERE A DIFFERENT PUBLIC FACING PORTAL THEN THE ONE THAT AGENCIES MIGHT USE TO CHECK UP ON THEIR ONGOING AUDITS? GREAT QUESTION
SO IF YOU'RE PART OF A GOVERNMENT, YOU CAN LOG IN AND YOU CAN KIND OF SEE MORE OF THE CLIENT SPECIFIC SIDE OF THINGS
AND LIKE WE SAID, YOU CAN SEE MANAGEMENT LETTERS IN THERE AS WELL
AND THE PUBLIC FACING SITE
I DON'T BELIEVE YOU NEED TO LOG IN FOR SO YOU CAN JUST ONLY SEE THE FINDINGS IN THERE
SO THERE ARE ACTUALLY TWO SEPARATE SITES OR I THINK IT'S THE SAME SITE
WHETHER OR NOT YOU LOG IN, I BELIEVE
PERFECT
OKAY
THANK YOU SO MUCH
YEAH
NO
GREAT QUESTION
YOU'RE MUTED, COMMISSIONER
SORRY
MEMBER GEHRKE, I HAVE NO QUESTIONS
THANK YOU
YEAH
AND FOR MYSELF, I APPRECIATE HAVING SOME CONTINUITY IN THE TEAM
ALTHOUGH I'M NOT SERVING ON THE AUDIT COMMITTEE THIS YEAR
I GOT MY TURN FOR A COUPLE OF YEARS
IT'S NICE TO SEE FAMILIAR FACES
I KNOW THAT THAT INSTITUTIONAL KNOWLEDGE IS REALLY IMPORTANT IN CARRYING THAT FORWARD
AND I BELIEVE THAT OUR AUDIT TEAM HAS A STRONG RELATIONSHIP WITH YOU ALL
SO IT'S GREAT TO SEE THAT CONTINUITY
CONGRATULATIONS ON YOUR PASSING GRADE, AND I THINK WE'LL MOVE ON FROM HERE
SO THANK YOU ALL FOR YOUR PARTICIPATION TODAY
THANKS FOR WORKING WITH YOU OVER THE COURSE OF THE YEAR
THANK YOU
THANK YOU SO MUCH
ALRIGHT, WE'RE GOING TO MOVE ON NOW TO ITEM NUMBER FOUR ON THE AGENDA, WHICH IS THE APPROVAL OF THE 2022 PROPOSED BUDGET
AND GLENN FERNANDEZ IS OUR INTERNAL AUDIT DIRECTOR, WILL LEAD THE DISCUSSION
GLENN, GO AHEAD
THANK YOU, COMMISSIONER CALKINS
MICHELLE, IF YOU COULD PULL UP THE DECK AGAIN THE MASTER POWERPOINT DECK AND GO SLIDE TO BEAR WITH ME JUST A MOMENT
DO GREAT
PERFECT
SO, COMMISSIONERS, WHEN YOU LOOK AT AN INTERNAL AUDIT BUDGET, THERE ARE THREE COMPONENTS THAT ARE REALLY THE GIST OF IT
OUR PAYROLL COSTS ARE STAFFING OUTSIDE SERVICES, WHICH WE'LL TALK ABOUT IN MORE DETAIL
THESE ARE CONSULTING FEES OR EXTERNAL AUDIT FEES FROM AN OUTSIDE AGENCY, THAT MIGHT DO SOME WORK FOR US
AND FINALLY, STAFF TRAINING, WHICH IS RELATIVELY SMALL
IT'S MINISCULE, BUT WE SELECT CERTIFICATIONS WE HAVE TO MAINTAIN FOR ALL OUR STAFF
WE HAVE FCPAS, SOME ARE CERTIFIED INTERNAL AUDITORS
SOME ARE TECHNOLOGY AUDITORS OR SOME CONSTRUCTION AUDITORS, AND THEY ALL CERTIFICATIONS THAT THEY NEED TO MAINTAIN AND THAT JUST MAKES THEM BETTER
SO INVESTING IN TRAINING AND DEVELOPMENT AND THEIR OWN PEOPLE IS VERY IMPORTANT, OBVIOUSLY, WITH ANYTHING, AS WITH PRIOE YEARS WILL FOLLOW PORT GUIDELINES AS WE DO THIS
WELL, WE'RE GOING TO LEVERAGE INDEPENDENT RESOURCES ON THE OUTSIDE SERVICES, COMPLY WITH CERTAIN RCWS ON INDEPENDENT AUDIT COSTS THAT ARE REQUIRED FOR CONSTRUCTION PROJECTS
AND I'LL TALK A LITTLE BIT ABOUT IT ABOUT THAT
AND OF COURSE, GOES WITHOUT SAYING A CONNECTION TO BABA TRAINING AND DEVELOPMENT AND TESTING IN THAT NEXT SLIDE, PLEASE
MICHELLE
SORRY I MOVED MY SCREEN AROUND EARLIER TODAY, WHICH WAS HUGE MISTAKE
SO BEAR WITH ME A MOMENT, ACTUALLY GLUE THAT HOLDS ALL OF THIS TOGETHER
MICHELLE, RCW 39.10.385
SO THIS WAS AMENDED A LITTLE BIT THIS YEAR AS WELL
AND WHAT IT ESSENTIALLY SAYS IS THAT ANYTIME WE DO A GC/CM TYPE PROJECT, WE'RE ALLOWED TO DO IT AS A PORT AS PUBLIC GOVERNMENT
WHEN IT'S IN THE BEST INTEREST OF CONSTITUENTS
AND WHEN WE DO THESE THINGS AND A GENERAL CONTRACTOR MIGHT ELECT, RATHER THAN BIDDING OUT ALL THE SUBCONTRACTORS, THEY MIGHT ELECT TO GO OUT AND SELECT PEOPLE THAT THEY'VE WORKED WITH IN THE PAST
AND WHEN THEY DO THAT AND THE COST IS ABOUT $3 MILLION, THE RCW REQUIRES AN INDEPENDENT IT BY THE PUBLIC BODY
PAID FOR BY THE PUBLIC BODY BE CONDUCTED
AND THIS IS ESSENTIALLY A RECONCILIATION OF ALL THE BILLINGS
SO ANY BILLINGS, WE WANT TO MAKE SURE THAT THEY COMPLY WITH THE CONTRACT AND THAT THE CHARGES ARE ACCURATE
SO IT'S A LOT OF WORK, BUT IT NEEDS TO BE DONE
AND WE'RE DOING A LOT OF GC/CM AND PROJECTS AND GOING FORWARD
SO YOU'LL SEE A LITTLE BIT MORE OF THESE
THE COST WHEN WE GET TO THE COST, THEY'RE NOT VERY HIGH IN COMPARISON TO THE PROJECT AS A WHOLE
AND THERE ARE SITUATIONS WHERE WE MIGHT NOT NEED ALL OF THE MONEY DEPENDING ON HOW THE GENERAL CONTRACTOR SECURE THOSE SUBSIDIARIES, THE SUBS
WE'RE GOING TO BE LEADING THESE ON AN INTERN
A LOT OF THAT IS IN 2022, AND THESE COSTS WILL BE CAPITALIZING
WHEN I SHOW YOU THE BUDGET LATER, YOU SEE THEM COME IN AND GO OUT BECAUSE THEY'LL SHOW UP IN OUR BUDGET, BUT THEY'LL BE CAPITALIZED AND CHARGED TO THE PROJECT
NEXT SLIDE, PLEASE
MICHELLE
HERE WE GO AGAIN
OKAY
A QUICK OVERVIEW OF OUR ORG STRUCTURE AS WE BUILD OUR BUDGET UP
ALSO, WE HAVE THREE ARMS ESSENTIALLY, WE HAVE DAN AND MANAGERS ON THE FAR LEFT CONCESSION AUDITS
THOSE ARE CONCESSIONAIRES AT THE AIRPORT, UBER LYFT TYPE AUDITS, AND THEN SOME OF THE OPERATIONAL AUDITS AS WELL
IN THE MIDDLE, YOU HAVE SPENCER BRIGHT TO MANAGES THE CAPITAL AUDITS, AND THEN YOU HAVE BRUCE KLOUZAL AND FAR RIGHT, THAT MANAGERS IT ON IT
AND BRUCE IS IN GREEN THERE
SO THIS IS, IN A NUTSHELL, IS YOU HAVE A TEAM THAT YOU MET IN PRIOR YEARS COMMISSIONERS, AND YOU'LL CONTINUE TO MEET THEM FROM TIME TO TIME
WHEN WE GO BACK TO LIVE MEETINGS
NEXT SLIDE, PLEASE
SO JUST FOR THE PUBLIC BENEFIT TO THE PUBLIC, WE AND YEAH, WE PROVIDE AUDITS AND ASSURANCE SERVICES
ESSENTIALLY, WE MAKE SURE THE PORT CONTROLS ARE OPERATING EFFECTIVELY AND EFFICIENTLY
WE ALSO THROUGH THE COURSE OF THAT, WE HAVE FOUR QUARTERLY COMMITTEE MEETINGS, AND WE HAVE NON PUBLIC MEETINGS FOR THE IT ISSUES BECAUSE THOSE ARE SECURITY SENSITIVE WHERE POSSIBLE
AND WHEN WE HAVE TIME, WE ALSO HELP THE BUSINESS, PROVIDES ADVISORY SERVICES
WE MIGHT NOT BE DOING AN AUDIT, BUT SOMEBODY MIGHT COME UP TO US AND SAY, OKAY, YOU GUYS ARE EXPERTS IN THIS
YOU'VE DONE A LOT OF WORK HERE
CAN YOU HELP US WITH DESIGNING A PROCESS OR CONTROL? CAN YOU REVIEW IT, HELP US OUT? AND TO THE EXTENT THAT IT DOESN'T COMPROMISE OUR INDEPENDENCE AND OBJECTIVITY, WE'RE HAPPY TO HELP THEM HELP THE BUSINESS IN MANY DIFFERENT WAYS
WE'VE DONE IN THE PAST, AND OUR GOAL IS TO CONTINUE TO DO THAT GO INTO THE FUTURE
NEXT SLIDE PLACE
MICHELLE SO, GOING BACK TO OUR OUTSIDE SERVICES
WELL, THE AN OVERVIEW OF WHAT WE'RE GOING TO BE SPENDING FIRST, THE EXTERNAL PEER REVIEW
WE HAD OUR LAST PEER REVIEW IN 2018, SO IT'S TIME TO HAVE ANOTHER PEER REVIEW
AS MANI, JOE AND ANGELA MENTIONED
EVEN THE FAO GETS THEIR PEER REVIEW AND WE HAVE TO GET OURS EVERY THREE YEARS
IT'S A REQUIREMENT FOR ALL GOVERNMENT AUTHORS
SO WE USE LOCAL GOVERNMENT AUDITORS THAT COME IN AND WE'LL SPEND A WEEK OR SO WITH US
THEY CHARGE US FOR THEIR TRAVEL AND THEY'RE LODGING
BUT OTHER THAN THAT, THEIR SALARIES ARE CHARGED THE OTHER GOVERNMENTAL BODY, IT'S PART OF THE PEER REVIEW PROCESS
SO THAT'S WHY WE GET IT DONE FOR A REASONABLY LOW COST TO THE EXTENT THAT THEIR TRAVEL COSTS, THE TEAMS AND LODGING AND MEALS AND INCIDENTALS ARE BELOW 15,000
THAT'S WHAT WE'LL GET CHARGED, BUT WE RUN SOMEWHERE AROUND THERE
JUST NOTE, COMMISSIONERS, WE DID GET A PASS LAST TIME THE SAME AS SO
SO IT'S THE HIGHEST LEVEL
IT'S THE ONLY LEVEL YOU GET A PASS, YOU FAIL
AND THEN I THINK THERE'S AN OPPORTUNITY FOR IMPROVEMENT BEFORE THE FAIL
BUT WE DID PASS, WHICH IS THE HIGHEST
JUMPING TO ITEMS TWO AND THREE
THESE ARE THE RCW REQUIRED AUDITS OF GC/CMSNS
SO WE'VE GOT THE MAIN TERMINAL LOW VOLTAGE, WHICH BUDGET 60,004
THE REASON WE DID THAT IS THE NOTICE PROCEEDS IN THE MIDDLE OF NEXT YEAR
SO WE ANTICIPATE FROM THE MIDDLE OF NEXT YEAR ON TO THE END OF YEAR
YEAH, 60,000 WILL BE MORE THAN ADEQUATE
THE AIRLINE REALIGNMENT NOTICE PROCEEDS AT THE END OF THIS YEAR
SO 120,000 FOR THE ENTIRE YEAR
I WANT TO NOTE THAT YOU HAVE THE LOW VOLTAGE PROJECT IS IN THE $50 MILLION RANGE AND THE AIRLINE REALIGNMENT IS PRETTY MUCH SIMILAR SPEND WITH THOSE LARGE SPENT ITEMS THESE ARE RELATIVELY SMALL AMOUNTS AND THEY WILL BE CAPITALIZED WITH THE PROJECT
AND IF IN THE EVENT THAT THE GENERAL CONTRACTORS USE A BIT OUT THERE SO THAT WE DON'T HAVE TO DO IT, THEN WE'RE NOT GOING TO USE THE MONEY AND IT WILL BE TURNED BACK TO THE PORT
THE LAST AUDIT THAT WE HAVE ON HERE IS IA FOR THE INTERNATIONAL ARRIVALS FACILITY
THIS WAS NOT REQUESTED BY COMMISSION BOWMAN AND COMMISSIONER CHO AT THE LAST AUDIT COMMITTEE MEETING
WE TALKED ABOUT SOMETHING THAT WE'LL LOOK AT NEXT YEAR
YOU KNOW, IT'S A LOT OF WORK TO LOOK BACK AND AND LOOK AT A HUGE PROJECT SUCH AS THE IS
SO WE ARE GOING TO BE LOOKING FOR SOME OUTSIDE RESOURCES TO HELP US WITH THAT
OUR HOPE IS THAT IN THIS AS WE LOOK AT THIS, IF WE FIND OPPORTUNITIES WHERE WE'VE BEEN OVERCHARGED THOSE BE RECOUPED TO PAY BACK TO THE PORT IF THAT'S IN THE EVENT WE DO NEXT SLIDE
MICHELLE SO, AS I MENTIONED THAT I DID A LOT OF TALKING IN THE PREVIOUS SLIDE ON THE PEER REVIEW
SO I WON'T GO OVER THAT AGAIN
AND I DID A LOT ON THE GC/CM AND INDEPENDENT AND IT'S THERE
SO I WON'T GO INTO A LOT OF DETAIL AGAIN
BUT THIS IS JUST A SUMMARY SLIDE BACK AND THE I ONE MORE SLIDE FOR THAT LET'S HOLD THERE MICHELLE
HE IS, AS I MENTIONED, IT'S A VERY DETAILED REVIEW OF THE COSTS THAT WE PLAN ON DOING
AND IF THERE ARE ANY POTENTIAL OVER BILLINGS, ESPECIALLY IN THE CHANGE ORDERS, WE'RE SEEING A LOT OF CHANGE ORDERS, THE WORK THAT WE'RE DOING, A LOT OF MISTAKES AND OPPORTUNITIES TO MAYBE CLAW BACK SOME FUNDS HERE AND THERE
BUT THE IF IS HUGE
THERE'S JUST A LOT TO LOOK AT
I WILL NOTE THAT ACOM OR AN OUTSIDE FIRM WAS ENGAGED TO LOOK AT CERTAIN THINGS AND DO CERTAIN RECONCILIATIONS OF THE PAY APS AND WILL BE LEVERAGING OFF THEIR WORK AND REVIEWED THEIR WORK AS WELL
NEXT SLIDE MICHELLE SO OUR TRAINING BUDGET OF THE THREE COMPONENTS, THE BULK OF OUR TRAINING, AS I MENTIONED, EMPLOYEE TRAINING AND DEVELOPMENT RELATED, THERE'S VERY LITTLE IN AIRFARE THERE WILL BE SOME WERE ANTICIPATING SOME TRAVEL FOR TRAINING NEXT YEAR AS THINGS OPEN UP
BUT THE BULK OF OUR COSTS ARE JUST REGISTRATION AND SEMINAR FEES PEOPLE TO REGISTER FOR THESE TRAININGS
THE MEMBERSHIP DUES AND FEES ARE FOR THE PROFESSIONAL ORGANIZATIONS THAT WE BELONG TO AND FOR THE LICENSES THAT WE HOLD, SUCH AS CPA LICENSES, AND WE BELONG TO AIRPORT AUDITORS ASSOCIATION, AIRPORT AUDITORS AND LOCAL GOV AND AUDITORS
SO WE PAY INTO THOSE AS WELL TO MAINTAIN TO SUPPORT THEM, AND WE GET A LOT OF BENEFIT FROM THEM AS WELL
SO WITH THE TNC AUDIT, FOR INSTANCE THAT WE TALKED ABOUT, IF I WANTED TO FIND OUT WHAT OTHER AIRPORTS ARE DOING, I HAVE THE ABILITY TO SEND AN EMAIL OUT TO ALL MY PEERS AT EVERY AIRPORT IN THE UNITED STATES AND GET A RESPONSE BACK AS TO WHAT THEY'RE DOING FOR A PARTICULAR CONTROL AND NOT ALL MIGHT RESPOND, BUT I'LL GET ENOUGH OF A SAMPLE SO THAT'S A REALLY GOOD ITEM OVER THERE
ASSET TO HAVE
NEXT SLIDE, PLEASE, MICHELLE AND THIS IS OUR COMPREHENSIVE VIEW OF THE BUDGET 2022 BUDGET
IT'S GOING TO BE 1.8 MILLION
THE 180,000 NEGATIVE THAT YOU SEE DOWN THERE FOR THE OUTSIDE SERVICE IS 108,000 AND THOSE COSTS WILL BE CAPITALIZED
THE 2021 BUDGET OR ACTUALS ARE COMING IN RIGHT ABOUT ON BUDGET
SO THE FULL GAS
THE BUDGET IS PRETTY MUCH GOING TO BE ABOUT THE SAME, NOT MATERIALLY DIFFERENT
SO NOT A BIG INCREASE
YOU KNOW, THERE'S JUST STANDARD SALARIES AND WAGE INCREASES THAT ARE UNIVERSAL ACROSS THE PORT
AND THE BIGGEST THING WOULD BE DOING THE IAF AND SOME OUTSIDE SERVICES AT ALL
CONTENT GROWTH I WILL TAKE QUESTIONS AT THIS POINT BEFORE I MOVE ON TO ANY FURTHER SLIDES
COMMISSIONER CALKINS AND MICHELLE, HOW YOU RUN IT? SO MR CALKINS, I CAN RUN THROUGH THE ROLE
PLEASE DO
BEGINNING WITH COMMISSIONER CHO, I DON'T THINK I HAVE ANY QUESTIONS
THANK YOU THOUGH
THANK YOU, COMMISSIONER MEMBER GEHRKE
I DON'T HAVE ANY QUESTIONS
THANK YOU, COMMISSIONER CALKINS
GLENN, JUST KIND OF AN INTERNAL BUDGET PROCESS
QUESTIONS
WE VOTE ON THIS TODAY
IF WE APPROVE IT, IT THEN GETS ROLLED UP INTO THE LARGER ORGANIZATIONAL BUDGET
OR IS THE AUDIT BUDGET REALLY SET ASIDE AS IT'S KIND OF A LITTLE ISLAND IN THE BUDGETING PROCESS
NOW YOU DO VOTE ON IT TODAY
SO AS YOU VOTE ON IT TODAY, YOU PASS IT ONTO THE WHOLE COMMISSION FOR APPROVAL
SO FROM HERE, AFTER YOU VOTE ON IT, IT GETS APPROVED AND YOU ACTUALLY MAKE A RECOMMENDATION AND THEN THIS GETS ROLLED INTO THE ENTIRE CORPORATE BUDGET
AND WHEN THE ENTIRE CORPORATE BUDGET IS APPROVED AT THAT POINT, THIS IS A DROP IN THE BUCKET FOR THE ENTIRE BUDGET THAT YOU PROBABLY WON'T SEE IT AGAIN, BUT IT'LL BE EMBEDDED IN THERE
AND THEN WHEN THAT WHOLE BUDGET IS APPROVED AT A LATER DATE BY THE COMMISSION, THIS WILL GET APPROVED AT THAT POINT
OKAY, GREAT
THANKS
THAT HELPS
ALRIGHT, I THINK THAT WRAPS UP WITH QUESTIONS
AND FOR THIS, I BELIEVE YOU HAVE TO VOTE ON IT
ALRIGHT, SO HEARING NO FURTHER DISCUSSION
IS THERE A MOTION TO APPROVE ITEM NUMBER FOUR RECOMMENDING APPROVAL OF 2022 BUDGET? SO MOVED
AND I'LL SECOND THAT
AND CLERK HART, CAN YOU PLEASE CALL THE ROLL? YES
BEGINNING WITH COMMISSIONER CHO
AYE
THANK YOU, COMMISSIONER CALKINS
I AM AN AYE AND WITH THAT THE MOTION IS APPROVED
ALRIGHT, IF THERE ARE, I DON'T BELIEVE THERE'S ANY OTHER QUESTIONS ON THIS AT THIS TIME
SO I THINK WE'RE GOING TO MOVE ON TO OUR AUDIT PLAN UPDATE, WHICH IS ITEM NUMBER FIVE ON THE AGENDA
AND GLENN, YOU'RE GOING TO LEAVE THAT DISCUSSION AS WELL
QUICK UPDATE
NEXT SLIDE, PLEASE
MICHELLE
YEAH, IT'S A BENEFIT OF THE PUBLIC BECAUSE THIS IS ALL POSTED IN AN EXTERNAL WEBSITE
I JUST WANT TO HIGHLIGHT YOU AND WHERE WE ARE AT THE AUDIT PLAN
COMMISSIONERS, WE ARE IN PRETTY GOOD SHAPE
WE DO PLAN ON COMPLETING EVERYTHING WITH ONE EXCEPTION THAT YOU'RE NOTING
I'M GOING TO NOTE OVER HERE THE T2 AIRPORT PARKING GARAGE SYSTEM
IT'S BEEN ON THE PLAN
THE REASON WE'RE NOT DOING IT THIS YEAR IS BECAUSE IT HASN'T BEEN IMPLEMENTED YET
IT'S IN THE PROCESS BEING IMPLEMENTED BECAUSE IT'S CODE HAS BEEN PUSHED DOWN
SO THERE'S REALLY NOTHING TO AUDIT UNTIL NEXT YEAR
SO WITH THAT THEY'RE GOING TO BE WRAPPING IT UP CLOSE TO THE END OF THIS YEAR, MAYBE WELL INTO NEXT YEAR
SO WE'LL PUT THAT IN THE NEXT YEAR'S AUDIT PLAN WE DID PICK UP IS THE DATA RECOVERY CAPABILITIES AUDIT
IF WE RECALL AT THE BEGINNING OF THE YEAR, WE HAVE A CONTINGENCY AUDIT PLAN FOR THE DIRECTOR'S
DISCRETION IS AN AUDIT HAS TO BE REMOVED TO KEEP BUSY
WE CAN PICK UP SOMETHING ELSE AND THROW IT OUT THERE AND DISCUSS IT WITH IT AS WELL OVER THE BUSINESS
AND THEN WE'LL REPLACE ONE AUDIT WITH ANOTHER
SO WE'RE GOING TO BE REPLACING THE AIRPORT PARKING GARAGE SYSTEM THAT HAS DELAYED THE INFORMATION BEING DELAYED WITH DATA RECOVERY CAPABILITIES
I ALSO WANT TO HIGHLIGHT THAT PCI PAYMENT CARD INDUSTRY AUDIT
WE WERE GOING TO GET THAT COMPLETED FOR THIS AUTO COMMITTEE MEETING, BUT IT WILL NOT BE COMPLETED TILL THE END OF THIS MONTH
SO WE WILL BE PRESENTING THAT IN THE DECEMBER AUTO COMMITTEE MEETING
WE ARE DOING THAT IN HOUSE
IT'S QUITE A LOT OF WORK, BUT IT WILL BE PRESENTED IN DECEMBER IN THE SECURITY SENSITIVE SESSION OR THE NON PUBLIC SESSION BECAUSE A LOT OF THIS STUFF IS SECURITY SENSITIVE
YOU KNOW, THE 333 SECURITY CONTROLS THAT WE LOOKED AT
WE'LL GIVE YOU A QUICK OVERVIEW OF THAT IN DECEMBER
WOULD THAT NEXT SLIDE, PLEASE, MICHELLE, A QUICK OVERVIEW OF OUR AUDITS AND WHERE WE STAND
AND THIS CAN CHART SHOWS THAT EVERYTHING IN GREEN IS DONE
EVERYTHING IN YELLOW WILL BE PRESENTED IN DECEMBER
SO DECEMBER IS GOING TO BE VERY BUSY AUDIT COMMITTEE MEETING
AND THE ITEM IN READ THE T2 PARKING GARAGE HAS BEEN PUSHED INTO 2022 AS WE DISCUSSED
THE YEAH, THAT'S IT ON THE AUDIT PLAN UPDATE
IF ANYONE HAS A COMMISSIONER OR MICHELLE, IF YOU WANT TO TAKE THE ROLL CALL, IF ANYONE HAS ANY QUESTIONS, I ANSWER THEM
AT THIS POINT, WE CAN RENT THREE BEGINNING WITH COMMISSIONER CHO FOR ANY QUESTIONS
NO, I'M GOOD
THANK YOU
THANK YOU, MEMBER GEHRKE, I DON'T HAVE ANY QUESTIONS
THANK YOU, COMMISSIONER CALKINS
AND I THINK MY MIND IS JUMPING TO THIS BECAUSE OF THE NEWS TODAY COMING OUT OF THE WHITE HOUSE
BUT I WONDER IF THERE IS ANY VALUE TO US AND IT MIGHT BE A 2022 ISSUE, BUT THINKING ABOUT AN AUDIT OF OUR COVID RELATED SAFETY AND SECURITY PROTOCOLS, MAYBE KIND OF LOOK BACK TO SEE HOW THOSE PROCESSES WENT
IF THERE WERE THINGS THAT WE COULD HAVE DONE TO EITHER SAVE COSTS OR, MORE IMPORTANTLY, TO PREVENT UNDUE HOSPITALIZATIONS OR MORTALITIES ASSOCIATED WITH PORT EMPLOYEES, CONTRACTORS, ET CETERA
I HAVE BEEN EXTRAORDINARILY IMPRESSED WITH PORT EXECUTIVE LEADERSHIP THROUGHOUT THIS PROCESS, BUT THIS MAY BE AN OPPORTUNITY FOR US TO EVALUATE IN HINDSIGHT WELL, WHAT WE POORLY AND HOW WE MIGHT DO BETTER IN PLANNING FOR THESE KIND OF EXIGENCIES WHEN THEY COME UP IN THE FUTURE
ABSOLUTELY
COMMISSIONER, I THINK A VERY GOOD RECOMMENDATION
I KNOW ON THE HEALTH SIDE, TERESA COMES AND TEAM HAVE DONE AN OUTSTANDING JOB, BUT THERE'S STILL OPPORTUNITIES OUT THERE AND VERY WELL SAID WE WILL, ESPECIALLY THE CAPITAL COVID CHANGE ORDERS
THERE'S CLEARLY SOME THINGS THAT WE SAW AND WE IDENTIFIED THIS YEAR AND PROBABLY A LOT OF OTHER THINGS OUT THERE
SO I WOULD DEFINITELY MAKE NOTE OF IT BRINGING FORTH TO COMMISSIONER CHO AND BOWMAN IN DECEMBER
YEAH, I THINK THAT'S A TERRIFIC IDEA
AND ALSO ON THE PROCUREMENT SIDE AS WELL
I KNOW WE MADE A LOT OF EMERGENCY PROCUREMENTS BECAUSE OF COVERAGE LIKE HAND SANITIZERS AND OTHER THINGS, BUT PRESERVING SOME OF THE KNOWLEDGE WE GAINED FROM HAVING TO MAKE THOSE UNEXPECTED PROCUREMENTS WOULD BE HELPFUL FOR THE FUTURE, NOT JUST PANDEMIC, BUT ANY EMERGENCY SITUATION
SO I WHOLEHEARTEDLY AGREE WITH COMMISSIONER CALKINS
[inaudible 01:02:02] COMMISSIONER CHO
THANK YOU VERY MUCH
OKAY
AT THIS POINT, WE'RE GOING TO MOVE ON TO ITEM NUMBER SIX, WHICH IS THE OPEN ISSUES FOLLOW UP
AND GLENN YOU'RE LEADING THAT AS WELL
YES
IF YOU LOOK AT THIS CHART, THE FIRST ONE SHOWS YOU FROM THE REPORT DATE, HOW LONG ISSUES HAVE BEEN OUTSTANDING
AND THERE'S 15 ISSUES THAT HAVE BEEN OUTSTANDING FOR MORE THAN TWO YEARS, AND WE'VE KIND OF LISTED SOME OF THEM DOWN BELOW A LOT OF THEM ARE IT ISSUES AND IT'S NOT NECESSARILY THAT IT IS WORSE THAN THE REST OF THE BUSINESS
THE IT IS A LOT OF SMALLER ITEMS THAT TAKE TIME TO FIX
SO CLEARLY THERE'S SOME BIG ITEMS IN THERE AS WELL
BUT WE'LL BE TALKING ABOUT THAT THE NON PUBLIC SESSION, JUST BECAUSE THE SECURITY SENSE OF NATURE OF THOSE ON THE ISSUES THEMSELVES
CHRISTINA GEHRKE AND I HAD QUITE A DISCUSSION YESTERDAY, BUT CHRISTINE, I DID WANT TO POINT OUT THAT ON THE LEFT HAND SIDE CHART, THE OUTSTANDING ISSUES FROM REPORT DATE
WE HAD 39 ISSUES LAST TIME, AND WE'RE DOWN TO 34
SO THERE IS SOME IMPROVEMENT THERE ON THE ISSUES FROM TARGET DATE
WE HAD 35 AND THEY'VE COME DOWN TO 30, SO THEY ARE REDUCING AND THEY ARE GETTING BETTER
ONE THING TO NOTE IS LIKE I SAID, THERE ARE SOME ISSUES THAT ONE TO TWO YEAR BAR HAS GONE UP QUITE A BIT ON ON THE RIGHT HAND SIDE CHART FROM TARGET DATE
AND A LOT OF TIMES BECAUSE THE ISSUES, SOME OF THE ISSUES ARE COVID RELATED THAT JUST CAN'T BE DONE, OR WE HAVE TO TAKE A CLOSER LOOK AT AND SEE IF THEY STILL MAKE SENSE
SO ONE OF THE THINGS I WANT TO DO IS IN THE NEXT QUARTER, GET WITH THE BUSINESS AND IDENTIFY THOSE AND IF THEY'RE NOT GOING TO DO IT, AND IF IT DOESN'T MAKE SENSE ANYMORE, YOU KNOW, I MEAN, I THINK THEY'RE ALL IMPORTANT, BUT IT'S A LEVEL OF PRIORITY
WHAT'S MORE IMPORTANT RIGHT NOW? AND IF IT'S GOING TO BE TEN YEARS DOWN THE ROAD, MAYBE WE'LL TAKE A MANAGEMENT SHOULD ACCEPT THE RISK AS WE DISCUSS
WE CAN MOVE IT OUT, REMOVE IT FROM THE CHART AND SAY YOUR MANAGEMENT EXCEPT THE RISK
AND I'LL PRESENT YOU WITH A LISTING OF THE ITEMS THAT WE'RE GOING TO BE CLOSING OUT OF BECAUSE IT'S LOW RISK
IT'S A HIGH IMPACT WITH LOW RISK, AND IT'S GOING TO TAKE YEARS TO COMPLETE, SO THAT'S IT IN A NUTSHELL AND FOLLOW UP THE DETAILS IN AN APPENDIX
A WOULD SHOW YOU ALL THE OPEN ISSUES
AND IF ANYBODY DOES WANT MORE DETAILS, I'M HAPPY TO GET THOSE
I'LL TAKE QUESTIONS
CLERK HART, YOU ON? NO, I LET'S START QUESTIONS WITH COMMISSIONER CHO
I DON'T THINK I HAVE ANY QUESTIONS RIGHT NOW
THANK YOU
COMMISSIONER MEMBER GEHRKE
YEAH, NOT A QUESTION
BUT KIND OF A COMMENT? WE HAD THIS CONVERSATION, BUT I JUST WANTED TO DO IT ON THE RECORD THAT I AGREE THAT IF IT KEEPS GETTING MOVED OUT, MANAGEMENT IS DEFACTO ACCEPTING THE RISK, EVEN THOUGH IT MAY HAPPEN
AND INSTEAD OF TRACKING SOMETHING THAT MANAGEMENT BASICALLY IS ACCEPTING A RISK FOR THE PERIOD OF TIME, I'D RATHER HAVE IT REPORTED AS RISK ACCEPTED
BUT MAKE SURE SOMETHING'S REPORTED TO THE AUDIT COMMITTEE
SO THEY'RE CLEAR ABOUT WHAT THE RISK IS THAT'S NOT BEING MITIGATED AND IS BEING ACCEPTED FOR A PERIOD OF TIME
IT'S A LOT OF JUST TRACK ISSUES TO TRACK ISSUES THAT AREN'T GOING TO BE RESOLVED IN A LONG PERIOD OF TIME
I AM GLAD THAT THE NUMBER OF ISSUES ARE COMING DOWN
I AM CONCERNED ABOUT THE NUMBER THAT ARE OUTSTANDING FOR OVER TWO YEARS AND BEING OUTSTANDING FOR OVER TWO YEARS
THERE IS A CHANCE THAT IT MAY NOT BE RELEVANT ANYMORE
SO I WOULD LIKE TO GO BACK AND RELOOK AT THEM BECAUSE AND MAKE SURE THEY ARE STILL RELEVANT
THANK YOU
MEMBER GEHRKE
GLENN, IS THERE A RESPONSE? NO, I THINK MEMBER GEHRKE SHE SPOT ON
AND THAT'S EXACTLY WHAT WE'RE GOING TO DO AND TALK A LITTLE BIT ABOUT THAT
YESTERDAY
I DO PLAN ON SITTING WITH THE BUSINESS AND GOING THROUGH THE ONE THAT ARE OUTSTANDING FOR THE TWO YEARS AND, YOU KNOW, IF THEY'VE ACCEPTED THE RISK OR IF IT'S JUST SOMETHING THAT CAN'T BE DONE FOR ANOTHER TEN YEARS
LIKE MEMBER GEHRKE SAID, WE'RE NOT GOING TO TRACK THAT, SAYING MORE, BUT WE WILL BRING IT TO THE COMMISSION TO THE AUDIT COMMITTEE IN DECEMBER
CAN HIGHLIGHT THOSE
AND THERE'LL BE A LOT THAT WILL BE IN THE SECURITY SENSITIVE OR THE NON PUBLIC SESSION
SO, YOU KNOW, ALL THE IT ISSUES WILL BE DISCUSSED THERE AND THEN A FEW OF THEM, VERY FEW, I THINK, WILL BE PUBLIC SESSION BECAUSE MOST OF THOSE ARE IN THE PROCESS OF BEING DONE
AND I JUST MAYBE ANOTHER YEAR OF TWO OUT, FOR EXAMPLE, THE THE FIRST ONE FISHING IN COMMERCIAL OPERATIONS OF MANUAL BILLING PROCESS
WE STARTED TO LOOK OUT FOR A VENDOR TO BUILD A SYSTEM, AND HE GOT A VENDOR AND IT TURNED OUT THAT SYSTEM DIDN'T WORK
SO WE'RE BUILDING IT IN-HOUSE AND THAT ADDITIONAL COST AND TIME AND SLOWED IT DOWN
BUT THEY ARE WELL ON THEIR WAY
THAT ONE WILL STAY OPEN WITH THE OTHER ONES AS WE DISCUSSED ON THE PHONE
THANK YOU, COMMISSIONER CALKINS, FOR QUESTIONS
NO FURTHER QUESTIONS FOR ME ON THIS TOPIC
OKAY
WHERE WE ARE HERE, I BELIEVE NOW WE'RE GOING ON TO THE OPERATIONAL AUDITS BEGINNING WITH THE FIRST ONE, THE NUMBER ITEM NUMBER SEVEN, THE BAGGAGE OPTIMIZATION
GLENN, GO AHEAD
SO I SHOW, AS YOU KNOW, WE'RE GOING TO TALK ABOUT BAGGAGE OPTIMIZATION
TNCS WE'RE COVERED ALREADY, SO WE'RE NOT GOING TO COVER THOSE
WE'RE GOING TO SKIP OVER THOSE AND THEN FRUIT AND FLOWER WAS A CLEAN AUDIT
SO THAT'LL BE RELATIVELY EXTREMELY QUICK,A ONE PAGE SLIDE
NEXT SLIDE, PLEASE
SO THE BAGGAGE OPTIMIZATION PHASE TO QUITE A LARGE PROJECT
I BELIEVE WE'RE GOING TO BE SPENDING $293,000,000 IN THIS, BUT IT REPLACES SIX INDIVIDUAL BAGGAGE SCREENING SYSTEMS AND CENTRALIZE THE OPERATIONS FOR SO IT MAKES VERY, QUITE A BIG PROJECT COMPLICATED
SOME BULLET POINTS ON WHAT IT'S GOING TO DO
IT WILL REPLACE THE CONVEYOR SYSTEMS TO THE NORTH PORTION OF BAG ROUTE
WELL, IT WILL MOVE SOME CONCESSION STORAGE AND THE MAINTENANCE SHOT TO CREATE MORE SPACE
IT WILL IMPROVE THE BASICALLY THE STATION SORTATION MATRIX IS MAKING IT MORE EFFICIENT, AND TSA WILL GET SOME ADDITIONAL EXPLOSIVE DETECTIVE SYSTEMS, MACHINES, ADDITIONAL CAPACITY OF ADDITIONAL MACHINES
AND TSA IS FUNDING A BIG PART OF THIS AS WELL
NEXT SLIDE, PLEASE
SO THE ENGINEERS ESTIMATE WAS $179,000,000
AND OBVIOUSLY THE BIG THING THAT STANDS OUT IN THIS ROOM IS IN THE SLIDE IS THAT HENSEL PHELPS AS THE WINNING BID CAME IN SIGNIFICANTLY ABOVE THAT
293,900,000
SO BECAUSE OF THE BIDS COMING IN REALLY HIGH, MOST OF THE COMMISSIONERS SHOULD BE AWARE THAT ALASKA PROTESTED AND VOTED AGAINST THIS AND MAJORITY FAIR LINE PARTNERS VOTED A NEGATIVE VOTE AGAINST PROCEEDING WITH THIS
BUT THE PORT HAS THE RIGHT TO MAKE THE FINAL DECISION AFTER 180 DAY COOLING OFF PERIOD
SO WE WAITED FOR THE 180 DAYS AND WE DID FOLD WITH THE BID
WE ALSO TALKED TO ALL OF THE AIRLINES DURING THE COURSE OF THE AUDIT
SEVERAL OF THE AIRLINES, I SHOULDN'T SAY SEVERAL OF THEM, ESPECIALLY PRIMARILY ALASKA DELTA SOUTHWEST
AND YOU KNOW, THE COSTS, OBVIOUSLY DURING COVID ARE SOMETHING THAT BOTHERS THEM ALL
THE REASON SOME VOTED YES, I DELTA SOUTHWEST
IT'S NOT THAT THEY THEY LIKED THE $293,000,000 BID
THEY JUST SAID THEY'VE GOT OPERATIONS, THEY'VE GOT BAGGAGE THAT THEY NEED TO GET DONE
AND IF THIS PRIMARILY BENEFITS ALASKA AND THIS DOESN'T GET DONE, THEIR STUFF CAN'T GET DONE IN ORDER TO KEEP THEIR BUSINESS MOVING
THEY GOT COMPELLED TO VOTE YES, WE DID MAKE SOME CHANGES AND PROVIDE MORE ROOM, WHICH I'LL TALK ABOUT A LITTLE BIT AND MAKES SOMETHING MORE EFFICIENT
AND THROUGH THE COURSE OF THAT, WE RECEIVED A $2.6 MILLION DEDUCT CHANGE ORDER
YEAH, IT WAS A LUMP SUM BIDS THAT WE SIGNED AND AGREED TO
WE WANT FULL TITLE TO THIS, BUT NONETHELESS, WITH THE IMPROVEMENT OF SIX MONTHS, GAINED A LITTLE BIT OF TIME AND WE GOT A $2.6 MILLION BACK, I DO
MY PERSONAL BELIEF IS HENSEL PHELPS PROBABLY MAKE SOME MONEY OF A DEFINITELY COME OUT AHEAD
NEXT SLIDE, PLEASE
YEAH
I ALSO WANT TO POINT OUT THAT WHEN WE DID TALK TO SOUTHWEST, THEY NOTED THAT THEY WERE A LITTLE DISAPPOINTED THAT ALL WE GOT BACK WAS THE $2.6 MILLION FOR THAT SIX MONTH IMPROVEMENT
WE DID TALK TO THE ESTIMATOR OF BNP
THIS IS BNP IS THE ESTIMATOR IS A FORM THAT SPECIALIZES IN BAGGAGE SYSTEMS THEY'RE BASED OUT OF COLORADO AND THEY GOT GLOBAL OFFICES ALL AROUND THE WORLD
SEVERAL OF THEM THESE ARE SOME OF THE HIGHLIGHTS THAT HE GAVE US
THE INDIVIDUAL GAVE US ON WHY THE BNP BELIEVED THE BIDS CAME IN SO MUCH HIGHER THAN THE ESTIMATE
AND I THINK THIS IS LIKE ONE OF THE BIGGER, MORE IMPROVEMENT OPPORTUNITIES FOR EVERYONE AND LESSONS LEARNED BASICALLY FOR THE PORT
BUT YEAH, HE SAID AFTER HE DID HIS ESTIMATE, WE SIGNED A PROJECT LABOR AGREEMENT WAS REQUIRED IN THE CONTRACTS, AND THAT WAS PART OF A BIG PART OF INCREASED LABOR RATE OF INCREASE IN COSTS
YEAH
THE ESTIMATOR DID TALK ABOUT BOTH BIDDERS REQUESTING A ONE YEAR EXTENSION DURING THE BIDDING PROCESS
HE'S LIKE, WHEN YOU HAVE A YEAR ADDED TO A CONTRACT, THAT'S GOING TO ADD A LOT MORE COSTS AS WELL
SO WE ADDED A YEAR AND THAT'S ADDITIONAL OVERHEAD, ADDITIONAL TIME, ADDITIONAL COSTS
I BUDGETED THIS FOR THREE YEARS, NOT THE FOUR YEARS, AND I EXPECT THEM TO BE DONE THAT TIME FRAME
YOU ADD AN ADDITIONAL YEAR, THAT'S THE ADDITIONAL OVERHEAD COSTS
THERE WERE SOME REQUIREMENTS FOR THE PORT CONTRACTOR TO MOVE THEIR EQUIPMENT IN AND OUT DAILY, SO THEY HAVE UNPRODUCTIVE HOURS
AND THAT CAME ABOUT A LATER DATE
YOU KNOW, THE ESTIMATOR FELT THAT THAT PLAYED AN IMPACT, THAT WAS A BIG PART OF IT
AND THEN THE ELIGIBLE CONTRACTORS
I DIDN'T SPEAK TO THE ESTIMATOR TODAY, COMMISSIONER CALKINS, AND HE SAID THE BIGGEST THING OVER HERE AT PREQUALIFICATION STATEMENTS, HE SAID THERE ARE MANY FIRMS OUT THERE
THEY'RE SMALLER THAT CAN DO BAGGAGE
THE BIGGEST THING IS THAT WE'RE SUCH A LARGE, COMPLICATED ORGANIZATION THAT, YOU KNOW, THERE'S FIVE OR SO MAJOR FORUMS OF THE WORLD THAT CAN DO SOMETHING AS BIG AS THIS
AND WE LIMITED IT TO SOMEBODY WHO WE FELT CONFIDENT COULD COMPLETE THE WORK WITH THE COMPLEXITIES THAT WE HAVE IN THE PORT
SO THIS IS IN LINE WITH THE PORT CONSTRUCTION MANAGEMENT FOLKS SAID AS WELL THAT THERE'S ONLY FIVE FORUMS OR SO THEY CAN DO THIS FOR THE PORT
SO THE PRE QUALIFICATIONS, WE JUST FROM THE ESTIMATORS PERSPECTIVE, ELIMINATING SOME OF THE SMALLER FORUMS THAT MIGHT HAVE BEEN AN ISSUE OF RISK
SO THAT WAS HIS BIG TAKE
AND THE LAST ITEM HE HIGHLIGHTED WAS COST OF STEAM INCREASE
THAT BE PHASE ONE, PHASE TWO
YEAH
I THINK WITH SOME CHANGES AND SOME OTHER THINGS THAT WE'VE MADE HERE, BOTH ALASKA AND YEAH, ALASKA DID HIRE AN OUTSIDE CONSULTANT TO LOOK AT THIS AT ALASKA
AND MAYBE THE ESTIMATORS LOST, TO SOME EXTENT SAID WITH ALL THE CHANGES, IT HAVE BEEN MADE A DIFFERENT MODEL OTHER THAN A DESIGN BID BUILD MIGHT HAVE BEEN MORE ADVANTAGEOUS
THE TRADE OFF IS THAT SINCE WE GOT TSA FUNDING, WE HAD TO GET DESIGN BEFORE WE COULD GET THAT TSA FUNDING
AND BECAUSE WE GOT THAT DESIGN, THEN WE USE THAT TO DO THE DESIGN
IT BUILD RATHER THAN A GC/CM WHERE YOU'RE DESIGNING OPTIONS AS YOU GO
SO WE MORE CONSTRAINED THERE
AND I BELIEVE ON PHASE THREE, YOU ALTERNATIVE METHOD WILL BE LOOKED AT
BUT ALL OF THESE EFFECTS AND CHANGES REALLY HELP GROW UP THE COST OF THE ESTIMATE
IT'S HUGE, BUT A NUTSHELL NET FIT
NEXT SLIDE, PLEASE
WE DO LOOK AT CHANGE ORDERS
AND AS I NOTED EARLIER, WE HAVE WE'VE BEEN SEEING A LOT OF DISCREPANCIES IN THESE COVID CHANGE ORDERS
IN ALL THE AUDITS WOULD LOOK AT
I'M GOING TO ASK SPENCER BRIGHT OR CAPITAL AUDIT MANAGER TO UNMUTE YOURSELF
SPENCER, IF YOU'RE ON AND TALK A LITTLE BIT ABOUT THIS ISSUE, PROVIDE A LITTLE MORE DETAILS TO WHAT YOU FOUND
ALL RIGHT
THANK YOU, GLENN
AND GOOD AFTERNOON, COMMISSIONERS AND MISS GEHRKE
AS GLENN MENTIONED, WE DID ISSUE
OH, SORRY
I'M SPENCER BRIGHT CAPITAL PROJECTS AUDIT MANAGER
AS GLENN MENTIONED, WE DID ISSUE ONE FINDING RELATED TO A LUMP SUM CHANGE ORDER BETWEEN THE PORT AND HENSEL PHELPS
THE CHANGE ORDER WAS APPROXIMATELY $246,000 TO HELP COVER ADDITIONAL EXPENSES THAT THE CONTRACTOR INCURRED BECAUSE OF COVID-19
DURING OUR WORK, WE WE IDENTIFIED A $29,000 DISCREPANCY BETWEEN ONE OF THE SUBCONTRACTORS COST PROPOSALS THAT WAS SUBMITTED TO THE PORT AND THE ACTUAL CHANGE ORDER AMOUNT BETWEEN HENSEL AND THE SUBCONTRACTOR
AND WHAT THAT MEANS IS
SO HENSEL WENT OUT TO ALL OF THEIR SUBCONTRACTORS AND REQUESTED PROPOSALS OF HOW MUCH THE SUB WOULD INCUR, AND THEN THE SUBS ALL SUBMITTED THEIR PROPOSALS TO HENSEL, WHO COMBINED THEM ALL AND THEN SUBMITTED ONE OVERALL PROPOSAL TO THE PORT
THE PORT REVIEWED REASONABLENESS AND THEN APPROVED THE CHANGE ORDER AS A LUMP SUM FOR ONE OF OUR TESTS
WHEN WE WERE REVIEWING THE SUBCONTRACTOR COST PROPOSALS, WE COMPARED THE PROPOSAL AMOUNTS TO CANCEL SUBCONTRACTOR DETAIL LEDGER REPORT, AND WE NOTICED THAT ALL OF THE SUBCONTRACTORS CHANGE ORDERS WITH HENSEL WITH THE SAME AMOUNT OF THE PROPOSAL EXCEPT FOR ONE
AND THAT WAS $29,000 DIFFERENCE
AND SO PART OF TESTING, WE REQUESTED DOCUMENTATION FROM FROM HENSEL JUST TO SHOW WHY THERE WAS A DIFFERENCE BETWEEN THE COST PROPOSAL THAT WE SAW COMPARED TO WHAT THEY AGREE TO CANCEL AND THE SUBCONTRACTOR
THE INITIAL RESPONSE THAT WE RECEIVED WHETHER IT WAS HENSEL'S INTENTION TO HAVE TWO DIFFERENT CHANGE ORDERS WITH THE SUBCONTRACTOR
THIS PARTICULAR CHANGE ORDER WAS FOR A FULL YEAR
HOWEVER, HENSEL DID NOT MAINTAIN DOCUMENTATION IS WHAT WE WERE TOLD TO SUPPORT, THAT THERE WAS GOING TO BE TWO SEPARATE CHANGE ORDERS
AND WE'RE ALSO TOLD THAT THE PEOPLE THAT WERE INVOLVED WITH THAT NEGOTIATION ORIGINALLY WERE NO LONGER WITH THE COMPANY, SO THEY COULDN'T BE ASKED
ABOUT TWO WEEKS AFTER OUR INITIAL REQUEST, HENSEL DID PROVIDE US WITH A NEW CHANGE ORDER THAT WAS SIGNED
THIS WAS IN JULY, AND OUR INITIAL REQUEST WENT OUT IN JUNE
A NEW CHANGE ORDER WITH THAT PARTICULAR SUBCONTRACTOR THAT WAS IN THE AMOUNT OF THE DISCREPANCY AND THEN SO NEXT SLIDE, PLEASE, MICHELLE
AND BECAUSE OF THAT NEW CHANGE ORDER, WE DETERMINED THAT A LOW RATING WAS REASONABLE FOR THIS ISSUE AND NO ACTION PLAN WAS NECESSARY FROM MANAGEMENT BECAUSE OF THE DISCREPANCY WAS CORRECTED
WE DID REITERATE COMMISSIONERS TO HENSEL THAT FOR THE CONTRACT FOR GENERAL CONDITIONS
THEY'RE SUPPOSED TO MAINTAIN DOCUMENTATION FOR ALL THIS STUFF IN THIS CASE BECAUSE IT COULD GO EITHER WAY
AND I UNDERSTAND THERE'S A LUMP SUM CHANGE ORDER, BUT THEY SUBMITTED THAT OR THE WRONG NUMBER TO THE PORT, WHICH WE USED AS A BASIS TO MAKE THAT LUMP SUM CHANGE ORDER WITH THEM
SO WE DID REITERATE THEY'RE SUPPOSED TO MAINTAIN DOCUMENTATION
AND IT'S IMPORTANT FOR THESE REASONS FROM THEIR DISCREPANCIES, WE'D LIKE A TRAIL TO SEE WHAT THE INTENT
DID YOU REALLY INTEND TO SIGN A DEAL WITH THEM FOR 20 SOMETHING THOUSAND DOLLARS? OR DID YOU JUST SUBMIT THE WRONG NUMBER TO THE PORT? WE WANT TO BE ABLE TO UNDERSTAND THAT TRAIL
BUT SINCE THERE WAS NOTHING THERE AND THEY DID END UP PAYING THE SUBCONTRACTOR AND SAYING WITH A SUBCONTRACTOR, WE JUST ACCEPTED THAT CIRCLE FROM HIM, BUT THAT'S THE BEST WE COULD DO QUESTIONS
OR WE ALSO HAVE A CONSTRUCTION MANAGEMENT ON THE PHONE ON THE TEAM CALL IN CASE ANYBODY HAS ANY QUESTIONS
COMMISSIONER CALKINS
SHOULD I RUN THROGH THE ROLE
YES, PLEASE
THANK YOU
BE GETTING WITH COMMISSIONER CHO
YEAH
THANK YOU SO MUCH FOR THIS PRESENTATION
I THINK THIS IS A REALLY HEALTHY EXERCISE IN UNDERSTANDING EXACTLY WHAT TYPES OF CHANGE ORDERS WE ARE RECEIVING AS A RESULT OF COVID
WE'VE HEARD THIS, I MEAN, OBVIOUSLY RUN INTO THE COVID ISSUE ON JUST ABOUT ANY AND ALL PROJECTS, BUT I THINK IT WOULD HELP FOR US TO UNDERSTAND WHAT THEMES THERE ARE IN TERMS OF CHANGE ORDERS AND COST INCREASES ASSOCIATED COVID
AS YOU ALL KNOW, WE ARE GOING THROUGH KIND OF A BACK AND FORTH ON ANOTHER PROJECT, THE INTERNATIONAL ARRIVALS FACILITY, IN TERMS OF WHAT IS AND WHAT IS NOT COVID RELATED COST EXPENSES
AND I THINK IT WOULD BE HELPFUL FOR US TO COMPARE WITH OTHER PROJECTS THAT WE HAVE
I KNOW NORTH SATELLITE WAS ONE THAT WAS BROUGHT UP AS SOMETHING THAT COULD BE COMPARED TO IF AND WHAT WAS HAPPENING AT THE SAME TIMELINE
THIS SEEMS LIKE ANOTHER PROJECT THAT WAS, YOU KNOW, THAT COULD POTENTIALLY ALSO BE ONE TO COMPARE TO
BUT I THINK TO RYAN'S EARLIER POINT ABOUT US LEARNING LESSONS ABOUT COVID
THIS IS ANOTHER AREA WHERE WE CAN REFLECT ON WHAT AREAS OF THE CAPITAL PROJECTS WERE AFFECTED THE MOST
AND THEN SECONDLY, I GUESS THIS IS A QUESTION WITH REGARDS TO THE [inaudible 01:24:06] AND THE DELAY ON THE PHASE TWO OF BAGGAGE HANDLING
DID WE EVER RUN NUMBERS ON HOW MUCH MORE EXPENSIVE THAT PROJECT HAS BECOME AS A RESULT OF THAT 180 DAY DELAY? AND CAN WE QUANTIFY THAT TO FOR THE FUTURE TO SHOW THAT LOOK, 108 DAYS IS ONLY GOING TO COST YOU MORE MONEY TO STOP MESSING AROUND, STOP DOING THESE VOTES
THAT ALL DOES ESCAPE THE CAN ON THE OWN AND MAKE THE PROJECT EVEN MORE EXPENSIVE, WHICH IS EXACTLY WHAT YOU DON'T WANT, RIGHT? AND SO I WONDER IF WE COULD DO A COMPARISON OF PRE-MNI VOTE PROJECTIONS VERSUS POST
I VOTE DELAYS AND WHETHER OR NOT THERE'S A HUGE DISCREPANCY COST
I IMAGINE WITH KICKING THE CAN KICKING THE CAN DOWN FURTHER DURING COVID, THE THINGS COULD HAVE BEEN CHEAPER, BUT THAT'S JUST A GUESS ON MY PART
I SEE WENDY RIDER ON THE PHONE AND COMMISSIONER CHO
SURE SHE CAN ANSWER YOUR QUESTION
SO MAYBE, GLENN, I COULD ANSWER THE FIRST ONE AND WE CAN RESPOND TO THE SECOND
SO I'M JANICE ON, AND WE'LL SEE THE CONSTRUCTION MANAGEMENT FUNCTIONS
SO RELATED TO COVID, WE DO COLLECT ALL OF THE INFORMATION WITH ALL OF THE PROJECTS AND REPORT GENERATIVE REPORT ON A MONTHLY BASIS
MOST OF OUR COVID COSTS WE PAY ON A REIMBURSABLE TIME AND MATERIALS WHERE THEY TURN IN PAPERWORK AND ACTUAL INVOICES THAT WE PAY
AND WE DID HAVE TWO AUDIT ON OTHER PROJECTS WHERE WE IDENTIFIED SOME DISCREPANCIES IN THE ACTUAL BILLING RATE OF THE PERSON THAT THEY HAD SUBMITTED DIFFERENT THAN THE NEGOTIATED RATE THAT WE HAD OR THE RATE THEY GAVE US FROM THE BEGINNING OF SWITCHING FROM ONE PERSON TO ANOTHER
THIS PROJECT, WE NEGOTIATED A LUMP SUM BECAUSE THE PROJECT WAS ACTUALLY BID BEFORE COVID, BUT WE DIDN'T EXECUTE THE CONTRACT UNTIL AFTER COVID WAS ALREADY WELL UNDER WAY
SO THE PROJECT TEAM FELT THAT THERE WAS ENOUGH KNOWN ABOUT COVID THAT WE COULD SIT DOWN AND NEGOTIATE IN GOOD FAITH WITH HENSEL PHELPS ON WHAT A REASONABLE RATE WOULD BE TO ADDRESS COVID IF THERE WERE EXPOSURES, THE CLEANING THAT WOULD BE NEEDED
AND SO THEY ARE BOTH RELATED TO COVID, BUT SLIGHTLY DIFFERENT IN TERMS OF WHAT WE NOTICED AS PART OF THAT
BUT TO YOUR POINT, YES, WE WILL
AS WE COLLECT AND REPORT ON COVID, ALSO PROVIDE SOME ADDITIONAL INFORMATION ABOUT WHAT OUR LESSONS LEARNED HAS BEEN WAS AMONGST ALL OF OUR PROJECTS FOR COVID
SO THAT'S THE FIRST QUESTION YOU ASKED AND THEN BELIEVE WENDY COULD TALK ABOUT THE SECOND QUESTION
THANK YOU, COMMISSIONER
WENDY RIDER, DIRECTOR, SECURITY AND EMERGENCY PREPAREDNESS
GOOD TO SEE YOU
I DON'T HAVE THE ANSWER
WHAT THE COST DIFFERENCE WOULD BE FOR WAITING ON AN NMI THAT DOESN'T GET APPROVED
HOWEVER, I WILL GO BACK TO THE TEAM AND SEE IF WE CAN COLLECT THAT DATA
IT ISN'T OFTEN THAT WE GET THAT NEGATIVE PARTICULAR ON A BAGGAGE SYSTEM, BUT I'LL GO BACK AND SEE IF WE CAN PROVIDE THAT NUMBER FOR YOU
THANKS
YEAH
THANK YOU
I THINK THAT WOULD BE VERY HELPFUL FOR MY COLLEAGUES AS WELL
JEFFREY, JOHN
SO JEFFREY MAY HAVE THAT
THANKS, JEFF
THANKS SO MUCH, JEFF
I'LL ANSWER
BUT I THINK THAT'S THE ESTIMATE THAT THE COST WOULD BE OUR COSTS FROM OUR STAFF
IDLING,WAITING FOR THOSE SIX MONTHS WHERE THE SOFT COSTS FOR OUR CONSULTANTS
SOFT COSTS FOR OUR PROJECT MANAGEMENT TEAM WAITING CONSTRUCTION MAN WAITING FOR THE CONTRACT TO START
SO I THINK AT THE MINIMUM, WE INCUR THOSE ITEM COSTS ON OUR SIDE
IN THIS CASE, I DON'T THINK THERE'S ANY COST FROM THE CONTRACTOR FOR THE SIX ONE BECAUSE IT WAS A HARD BID
WE HAD A BID IN HAND AND THAT BID WAS NOT ESCALATED
JANICE, THE BID WAS NOT ESCALATED, RIGHT
THAT'S CORRECT
YEAH
SO IN THIS CASE, BUT IT WAS A GC/CM OR DESIGN BILL
THERE WOULD HAVE BEEN SOME INCURRED COST BECAUSE OF THE IDLE TIME
I LIKE THAT
ED WHITE PROJECT PROGRAM LEADER AND ALSO LIKE TO ADD THAT SIX MONTH DELAY
I THINK IF YOU LOOK AT IT FROM ANOTHER PERSPECTIVE DUE TO COVID, IF WE ACTUALLY STARTED THIS SIX MONTHS EARLIER, WE PROBABLY COULD HAVE TAKEN A YEAR OUT OF THE SCHEDULE INSTEAD OF THE SIX MONTH BECAUSE OF THE LOWER OPERATIONS
WE'LL HAVE TO GO BACK AND RUN THE NUMBERS AND FIGURE OUT WHAT THAT SIX MONTH IS
BUT IF WE JUST STARTED SIX MONTHS EARLIER, WE JUST FINISHED THIS WEEK STEP 14 OUT OF 64
WE PROBABLY COULD HAVE BEEN INTO THE STEP 30 AND HAD LESS IMPACT TO THE AIRLINES THAT WE KIND OF GRIND THROUGH
SO THERE IS AN IMPACT
IT'S IT'LL BE HARD TO CALCULATE WHAT THAT NUMBER IS, BUT WE'LL COME UP WITH A NUMBER AND GET IT TO YOU GUYS
THAT'S AN EXCELLENT POINT, BECAUSE I GO OUT AND TALK TO PEOPLE ABOUT HOW THE SLOW DOWN AT THE AIRPORT ACTUALLY GAVE US A UNIQUE OPPORTUNITY TO ACCELERATE THINGS
AND THIS SOUNDS LIKE A MISSED OPPORTUNITY
YEAH
WE'VE CAPITALIZED ON ACCELERATING
WE PUT A TEAM TOGETHER WHEN WE STARTED THE CONTRACT AND CAME UP WITH 25 IDEAS ON HOW CAN WE UTILIZE THIS TIME SO THAT WE CAN SPEED THINGS UP, GET IT DONE QUICKER, AND TRY TO MINIMIZE THE OPERATIONAL IMPACT
SO OUT OF THOSE, WE CAME UP WITH THE ONE THAT WE GOT THE BIG CHANGE ORDER ON, AND WE CONTINUE TO LOOK AT THOSE AS WE MOVE THROUGH THE DIFFERENT SEQUENCE OF ITEMS THAT WE DO
I APPRECIATE THAT, IN FACT, NOT JUST THE COST DIFFERENCE, BUT ALSO THE DIFFERENCE IN TIMELINE WOULD BE HELPFUL FOR US TO KNOW AS WELL
TO YOUR POINT, HOW MUCH QUICKER WOULD THIS HAVE BEEN FINISHED HAD WE DONE THIS DURING THE HEIGHT OF COVID ALRIGHT
OKAY
THANK YOU, COMMISSIONER CHO
MOVING TO MEMBER GEHRKE FOR QUESTIONS
NO QUESTIONS FOR ME
THANK YOU, COMMISSIONER CALKINS
YEAH
GREAT QUESTION, SAM, ABOUT TIMELINE AND COSTS ASSOCIATED WITH THAT SIX MONTH DELAY
I THINK THAT IS IMPORTANT
AND IF FOR NO OTHER REASON THAN WE ARE IN CONSTANT WELL AND SAY, WE LANCE AND JEFFREY AND EVERYONE ON THE AIRPORT SIDE IS IN CONSTANT NEGOTIATIONS WITH THE AIRLINES ABOUT EVERYTHING, AND THEY SPEAK AND WITH SUCH CONFIDENCE THAT IT MIGHT NOT HURT TO REMIND THEM THAT, HEY, SOMETIMES MAYBE THE PORT HAS SOME VALIDITY OR CREDIBILITY TO WHAT WE'RE SAYING
SO I WOULD APPRECIATE THAT ANALYSIS AND MAKING SURE THAT OUR AIRLINE PARTNERS ARE AWARE OF IT, TOO
NO FURTHER QUESTIONS FOR ME ON THIS TOPIC
I OKAY
AND WITH THAT, I THINK WE ARE GOING TO MOVE ON TO OUR FINAL, OUR LIMITED CONTRACT COMPLIANCE AUDITS
GLENN, YOU WANT TO TAKE OVER? YEP
IT'S SLIDE 25, AND I JUST WANT TO SAY THANKS TO MICHELLE
JEFFREY ED
I KNOW I SAW WAYNE'S HAND UP THERE, BUT, WAYNE, YOU NEVER GOT YOUR CHANCE
BUT MAYBE WE CAN CERTAINLY GO BACK
WAYNE, IF YOU'VE GOT SOMETHING BURNING, WE'D LOVE TO HEAR IT
HE PULLED HIS HAND DOWN SO WE'LL GATHER THE COMMISSION
WE WILL GATHER THAT ANALYSIS AND ADD IT TO THE RECORD
ALSO FOR THIS COMMISSION MEETING, FOR THE SITE COMMITTING MEETING FOR THE PUBLIC AND FOR TRANSPARENCY COMMISSIONERS
THIS WAS A CLEAN AUDIT WITH FRUIT AND FLOUR FLORET
WE DO THIS
WE CYCLE THROUGH RANDOM THE PROCESS CONCESSIONARIES AT THE AIRPORT BECAUSE IT IS A SELF REPORTING SYSTEM TO MAKE SURE THAT THEY ARE PAYING US WHAT THEY CONTRACTUALLY OBLIGATED TO DO
SO IT'S KEEPING THEM ON THEIR TOES
WE DON'T EXPECT TO FINDINGS WITH EVERY SINGLE ONE OF THEM
WE DO TRY TO HAVE A RISK BASED APPROACH FROM TIME TO TIME
WE CAN LOOK AT THE HIGHER RISK ONCE AND MORE COMPLICATED ONCE
THIS WAS PRETTY STRAIGHTFORWARD ONE AND THEY ARE PAYING US ACCURATELY
ACTUALLY, WE FOUND A FEW THOUSAND DOLLARS THAT THEY COULD BENEFIT FROM, YOU KNOW, ADD TO THEIR BOTTOM LINE SO IT WOULD BENEFIT THEM OUT
SO THE AUDITS ARE BENEFICIAL TO BOTH OF US
IN THIS CASE, IT WAS BENEFICIAL TO FLORES F
WE HAVE NO ISSUES IN THIS
THAT WAS CLEAN AUDIT
NEXT SLIDE, PLEASE, MICHELLE
SO WITH THAT, CLOSE IT OUT AND HAND IT BACK TO YOU, COMMISSIONER CALKINS, TO CLOSE OUT THE MEETING
AND CAN YOU SEE? GREAT
WELL, IT'S BEEN FUN FOR ME TO GET BACK INTO THE AUDIT COMMITTEE FOR A MEETING
YOU GUYS ARE ALWAYS SO PROFESSIONAL AND YOU LEARNED SO MUCH ABOUT THE INNER WORKINGS OF THE PORT ATTENDING AND GETTING TO PARTICIPATE IN THEM
SO I'M GOING TO GIVE ONE LAST OPPORTUNITY FOR MEMBER GEHRKE TO SHARE ANY FINAL COMMENTS ON THE MEETING
I THINK IT WAS A REALLY GOOD MEETING
I REALLY LIKE THE DISCUSSION OF THE FINDINGS AND THE WAY WE TALKED ABOUT HIM
I THOUGHT IT WAS FOR REALLY VALUE ADD IN THAT I APPRECIATE GLENN AND HIS TEAM AND ALL THE WORK THEY'VE BEEN DOING, ESPECIALLY DURING THESE TIMES
AND I KNOW WORKING ON THESE CONSTRUCTION PROJECTS IS NOT THE FUNNEST TIME AND I THINK THEY'RE DOING GREAT
RIGHT
AND COMMISSIONER CHO, DO YOU HAVE ANY FINAL COMMENTS? JUST THAT I WANT TO ECHO THE SENTIMENTS OF MY COLLEAGUES THAT THIS WAS A PERFECT MEETING
THANK YOU FOR ACCOMMODATING MY ECONOMY
ACCOMMODATING ME
RYAN, THANK YOU FOR STEPPING IN
I HOPE TO CONVINCE YOU TO REJOIN THE COMMITTEE FOR NEXT YEAR, PERHAPS, BUT WE HAVE THAT CONVERSATION LEADER AND THANK YOU TO ALL THE STAFF WHO PUT IT TOGETHER, ALL THESE PRESENTATIONS
IT'S RYAN'S RIGHT
THIS IS IF YOU REALLY WANT TO LEARN THE INS AND OUT OF THE PORT, THIS IS THE RIGHT COMMITTEE TO BE ON
AND I REMEMBER RYAN TELLING ME THAT WHEN I WAS THINKING ABOUT JOINING COMMITTEE, SO I'M REALLY GLAD I DID SO THANK YOU ALL ALWAYS ALRIGHT AND WITH THAT, I'M BORROWING ANY OBJECTIONS, I'M GOING TO ADJOURN THE MEETING AT 4:04 P.M.
THANK YOU ALL SO MUCH FOR ATTENDING
THANKS, CHRISTINA
HAVE A GREAT AFTERNOON
HI, EVERYBODY
THANK YOU,

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