The Regular meeting scheduled for 2021-10-26 at Remote

Transcript

The Regular meeting scheduled for 2021-10-26 at Remote

THIS IS COMMISSION PRESIDENT FRED FELLEMAN, CONVENING
THE REGULAR MEETING OF OCTOBER 26, 2021
THE TIME IS 1030
WE'RE MEETING REMOTELY TODAY VIA TEAMS TO COMPLY WITH THE SENATE CONCURRENT RESOLUTION AGENT 84-2 AND IN ACCORDANCE WITH GOVERNOR INSLEE'S PROCLAMATION 2028
PRESENT WITH ME TODAY ARE COMMISSIONERS BOWMAN, COMMISSIONER CHO AND STEINBRUECK, WHO ARE CURRENTLY GATHERED ON THE EXECUTIVE SESSION LINE AWAITING THE OPENING OF THE MEETING
WE'LL IMMEDIATELY RECESS INTO THE EXECUTIVE SESSION TO DISCUSS ONE ITEM REGARDING LITIGATION OR POTENTIAL LITIGATION OR LEGAL RISK PURSUANT RCW 42.30.110.1 (i) FOR APPROXIMATELY 40 MINUTES AND WE'LL RECONVENE INTO PUBLIC SESSION AT TWELVE NOON
WE'LL NOW GO OVER TO THE EXECUTIVE SESSION
SEE YOU AT NOON
THANK YOU
THANKS AGAIN, EVERYONE, FOR JOINING THE SESSION TODAY
WE'LL RECONVENE BACK NOW
WE HAVE RECONVENED
THIS IS COMMISSION PRESIDENT FRED FELLEMAN RECONVENING THE REGULAR MEETING OF OCTOBER 26, 2021
THE TIME NOW IS TWELVE TWO
WE'RE MEETING REMOTELY TODAY VIA TEAMS TO COMPLY WITH THE SENATE CONCURRENT RESOLUTION 84-02 AND IN ACCORDANCE WITH GOVERNOR INSLEE'S PROCLAMATION 20-28
PRESENT WITH ME TODAY ARE COMMISSIONERS BOWMAN COMMISSIONER CHO, AND WE EXPECT COMMISSIONER STEINBRUECK TO JOIN US MOMENTARILY
I'LL ASK THE CLERK TO DO A ROLL CALL OF ALL COMMISSIONER CHO, ENSURE EVERYONE IS ON THE LINE AT THIS TIME
CLERK HART, PLEASE DO THE HONORS
THANK YOU, MR COMMISSION PRESIDENT, BEGINNING WITH COMMISSIONER BOWMAN PRESENT
THANK YOU, COMMISSIONER CHO
YOU COMMISSIONER CHO PRESENT
THANK YOU, COMMISSIONER STEINBRUECK AND THEN COMMISSIONER FELLEMAN PRESENT
THANK YOU
WE DO HAVE FOUR COMMISSIONERS IN ATTENDANCE TODAY AND EXPECTING COMMISSIONER CHO INVITE HERE SHORTLY
VERY GOOD
THEN TODAY'S MEETING IS STRUCTURED FOR OUR VIRTUAL FORMAT
WE'VE MADE SPECIAL ARRANGEMENTS TO PROVIDE FOR REMOTE PARTICIPATION FOR ALL OF OUR STAFF AND COMMISSIONERS
LATER WE'LL BE TAKING PUBLIC COMMENT FROM PEOPLE WHO ARE PARTICIPATING BY TEAMS AND WHO'VE SIGNED UP TO SPEAK
ALL VOTES TODAY WILL BE TAKEN BY THE ROLL CALL METHOD
SINCE ALL COMMISSIONERS WILL BE PARTICIPATING REMOTELY, THAT MEANS EACH VOTE THE CLERK WILL CALL EACH COMMISSIONER'S NAME
COMMISSIONERS ON THE TEAM'S CALL ROLL, MAKE SURE THEY'RE UNMUTE AND THEN ANSWER YAY OR NAY TO BE EQUITABLE
WE'LL ASK ALL COMMISSIONER CHO SPEAK IN TURN AND WAIT TO BE RECOGNIZED BEFORE SPEAKING
THAT'S AS MUCH AS POSSIBLE
WE'RE MEETING ON THE ANCESTRAL LANDS AND WATERS OF THE COSALISH PEOPLE WITH WHOM WE SHARE A COMMITMENT TO STEWARD THIS NATURAL RESOURCES FOR FUTURE GENERATIONS
THIS MEETING IS BEING DIGITALLY RECORDED AND MAY BE VIEWED OR HEARD AT ANY TIME ON THE PORT'S WEBSITE AND MAY BE REBROADCAST BY KING COUNTY TELEVISION
PLEASE STAND OR JOIN US TO THE PLEDGE OF ALLEGIANCE
I PLEDGE ALLEGIANCE TO THE FLAG, THE UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE AND LIBERTY FOR LIBERTY AND JUSTICE FOR ALL
SO NOW WE'LL MOVE TO THE FIRST ITEM OF BUSINESS TODAY, WHICH IS THE APPROVAL OF THE AGENDA
COMMISSIONERS, PLEASE UNMUTE YOURSELVES AND I'M GOING TO ASK EACH COMMISSIONER CHO TURN IF THEY HAVE ANY MOTIONS TO REARRANGE THE ORDER OF THE DAY
AND IF YOU DO, I'LL ASK FOR A SECOND
PLEASE RESPOND WHEN THE CLARK CALLS YOUR NAME
IF YOU HAVE NO CHANGES, JUST SAY NONE
CLERK HART, PLEASE CALL THE ROLL FOR ANY CHANGES TO THE AGENDA
THANK YOU FOR CHANGES TO THE AGENDA BEGINNING WITH COMMISSIONER BOWMAN
NO CHANGES
THANK YOU, COMMISSIONER CHO, FOR ME EITHER
THANK YOU, COMMISSIONER CHO
NONE
THANK YOU
I DO SEE COMMISSIONER STEINBRUECK HAS JOINED US, COMMISSIONER STEINBRUECK FOR CHANGES TO THE AGENDA
NO CHANGES
THANK YOU
THANK YOU, COMMISSIONER FELLEMAN
NO CHANGES
THANK YOU
SO PROCEEDING NOW, THE AGENDA IS APPROVED
YOU NEED TO TAKE THE VOTE ON THAT APPROVAL
OKAY
SO THERE ARE NO CHANGES
NOW WE WILL ASK FOR APPROVAL OF THE AGENDA
YES
AND I'LL CALL THE ROLL BEGINNING WITH COMMISSIONER BOWMAN APPROVE
THANK YOU, COMMISSIONER CHO
THANK YOU, COMMISSIONER CHO
HI
THANK YOU, COMMISSIONER STEINBRUECK
YES
THANK YOU, COMMISSIONER FELLEMAN
THANK YOU
YOU HAVE FIVE YESSES AND ZERO NOS
NOW WE CAN SAY THE AGENDA IS APPROVED
SO NEXT UP ON OUR AGENDA IS THE EXECUTIVE DIRECTORS REPORT
BUT BEFORE WE DO SO, I WOULD LIKE TO SAY A COUPLE OF WORDS AS USUAL
SO IT SHOULD GO REALLY WITHOUT SAYING
BUT THE PORT IS NOT AN ENVIRONMENTAL ORGANIZATION, BUT AS A PUBLIC INSTITUTION, IT'S BOTH OUR LEGAL AND PUBLIC OBLIGATION TO EXERCISE ITS ECONOMIC MISSION WITH ENVIRONMENTAL RESPONSIBILITY
IN FACT, THE PORT IS MAKING GREAT STRIDES TO REACH ITS CENTURY AGENDA GOAL OF BEING THE GREENEST AND MOST ENERGY EFFICIENT PORT IN THE NATION
DRIVING THE PORT'S ACHIEVEMENTS FOR THESE GOALS HAS BEEN A PERSONAL PRIORITY OF MINE
AND WHEN FIRST ELECTED IN 2015, AND I'M PROUD TO SERVE WITH A COMMISSION THAT FULLY EMBRACES THESE GOALS AS WELL
NOW, WE'VE CERTAINLY HEARD FROM THE PUBLIC AND UNDERSTAND THERE'S ALWAYS MORE WE CAN DO, AND WE APPRECIATE PEOPLE SHARING THEIR PERSPECTIVE ON ISSUES THAT MIGHT NOT HAVE OTHERWISE COME TO OUR ATTENTION
HOWEVER, I THINK IT'S ALSO IMPORTANT TO RECOGNIZE THAT WE ARE NOT ONLY AWARE OF OUR ENVIRONMENTAL RESPONSIBILITIES BUT CONTINUE TO MAKE PROGRESS TOWARDS THEM
THERE ARE TWO RECENT EXAMPLES I'D LIKE TO QUICKLY NOTE
FIRST IS IN RESPONSE TO THE LETTER WE WROTE TO THE EPA WITH THE CITY AND THE COUNTY THAT THE EPA WILL BE HOSTING A ROUND TABLE DISCUSSION REGARDING THE SUPERFUND CLEANUP OF THE DUWAMISH RIVER ON NOVEMBER 10
AND SECOND, AS A RESULT OF THE ORDERS PASSED BY THE COMMISSION AT OUR NEXT MEETING, EXECUTIVE METRUCK WILL BE BRINGING FORWARD A SCOPE OF WORK FOR THE INVENTORY OF THE NORTH SEATAC PARK
UNTIL THAT INVENTORY IS COMPLETED, THERE WILL BE NO DECISIONS MADE REGARDING DEVELOPMENT THERE
WELL, THESE LOCAL ISSUES ARE VERY IMPORTANT TO THE QUALITY OF LIFE OF OUR COMMUNITIES
THERE ARE SEVERAL MATTERS BEFORE US TODAY REGARDING THE PORT GREENHOUSE GAS EMISSION REDUCTION EFFORTS IN LIGHT OF THE GLOBAL CLIMATE CRISIS, THE URGENCY FOR CLIMATE ACTION IS UNDERSCORED BY THE UN SECRETARY GENERAL'S RECENT STATEMENT IN RESPONSE TO THE LATEST IPCC REPORT
THE IMPACTS OF THE CLIMATE CHANGE ARE CODE RED FOR HUMANITY
THE PORT OF SEATTLE WILL VOTE TODAY TO ACCELERATE ITS OWN EMISSION REDUCTION EFFORTS BY TEN YEARS TO BE NET ZERO OR BETTER FOR PORT ON EMISSIONS BY 2040 AND RECOGNIZING THAT SHIPS AND PLANES ARE THE HARDEST EMISSION SOURCES TO DECARBONIZE, THE PORT CONTINUES TO MAKE INVESTMENTS IN SHORE SIDE EFFORTS TO HELP OUR MARITIME AND AVIATION TENANTS ACHIEVE THEIR OWN GOALS
THE PORT IS ALSO COMMITTED TO ACCELERATE AND EXPAND THOSE GOALS FOR OUR INDUSTRIES OPERATING AT OUR FACILITIES TO BE CARBON NEUTRAL OR BETTER BY 2050, AND WE ALSO CONTINUE TO ADVOCATE FOR STATE AND FEDERAL LEGISLATION TO FURTHER THESE MUTUALLY SHARED GOALS
LAST MONTH, THE AAPA OR THE AMERICAN ASSOCIATE REPORT AUTHORITIES PRESENTED THE PORT AND THE SEAPORT ALLIANCE THE LIGHTHOUSE AWARD FOR OUR WORK ON THE NORTHWEST PORTS CLEAN AIR STRATEGY
AND SO THIS IS JUST ONE EXAMPLE OF RECOGNIZING THAT SOME FOLKS ARE LOOKING TO US TO BE A NATIONAL MODEL
HOWEVER, WE REALIZE THAT WE ARE A PORT
WE'RE IN THE ECONOMIC DEVELOPMENT BUSINESS AND WE WILL DO OUR BEST TO CONTINUE TO REDUCE OUR GREENHOUSE GAS FOOTPRINT WHILE PROVIDING THE JOBS AND ECONOMIC HEALTH OF THE REGION
SO WITH THAT, I WOULD LIKE TO PASS IT OFF TO OUR EXECUTIVE DIRECTOR METRUCK
THANK YOU, PRESIDENT FELLEMAN
COMMISSIONER CHO AFTERNOON THE COPENHAGEN PANDEMIC CONTINUES TO IMPACT OUR REGION
WE CONTINUE TO MAKE PROGRESS IN OUR EFFORTS AGAINST THE COVID-19 VIRUS AND ITS VARIANTS
INCREASINGLY, THE ANALYSIS SHOWS US IT IS PROVING TO BE A PANDEMIC OF THE UNVACCINATED
SEATTLE KING COUNTY PUBLIC HEALTH REPORTS THAT UNVACCINATED PEOPLE ARE 67 TIMES MORE LIKELY TO BE HOSPITALIZED WITH COVID-19 AND 76 TIMES MORE LIKELY TO DIE OF ;COVID 19 ILLNESS
COVID 19 CASES AMONG THE UNVACCINATED ARE THREATENING TO OVERWHELM THE HEALTH CARE SYSTEM HERE AND AROUND THE NATION
HOSPITAL BEDS, SPECIALIZED LIFESAVING EQUIPMENT AND HIGHLY SKILLED STAFF NEEDED TO CARE FOR COVID-19 PATIENTS
OUR MAXIMUM CAPACITY THROUGHOUT OUR STATE IN THE REGION
WASHINGTON STATE REPORTS A VACCINATION RATE OF 72.5% FOR FULLY VACCINATED INDIVIDUALS TWELVE YEARS OLD AND OVER
KING COUNTY'S VACCINATION RATE IS 82.6% FOR FULLY VACCINATED INDIVIDUALS, TWELVE AND OVER
THESE VACCINATION RATES ARE HELPING TO DECREASE POSITIVE CASES, HOSPITALIZATIONS AND DEATHS FROM COVID 19 HERE AT THE PORT
WE ARE DOING OUR PART TO PROTECT STAFF IN THE GREATER PUBLIC BY ENSURING ALL OF OUR EMPLOYEES WILL SOON BE FULLY VACCINATED
WE'RE MAKING STEADY PROGRESS IN OUR VACCINATION VALIDATION EFFORTS IN ORDER TO QUALIFY FOR AN INCENTIVE DAY
VACCINE VERIFICATION BY EMPLOYEES MUST OCCUR BY MONDAY, NOVEMBER 1
DATES FOR VALIDATION CAN BE FOUND ON OUR COMPASS WEBSITE
EMPLOYEES MUST TAKE AN INITIAL STEP TO BE FULLY VACCINATED BY NOVEMBER 15, MEANING RECEIVING THE FIRST DOSE OF A TWO DOSE SERIES OR SINGLE DOSE OF JOHNSON AND JOHNSON
BY THAT TIME, THIS CAN MOVE THE DEADLINE TO DECEMBER 27, DEPENDING ON THE VACCINE AND THE DATE IT IS RECEIVED, WE WILL TERMINAL EMPLOYEES WHO TAKE NO STEPS TOWARD BEING FULLY VACCINATED BY NOVEMBER 15 UNLESS THEY ARE GRANTED AN EXEMPTION AND AN ACCOMMODATION
I WANT TO URGE EVERY EMPLOYEE URGE EVERY EMPLOYEE TO GET VACCINATED IF YOU'VE NOT DONE SO AND URGE EVERY EMPLOYEE TO VALIDATE THEIR VACCINE AS SOON AS POSSIBLE AS WELL
THANK YOU AGAIN, COMMISSIONER CHO, YOUR SUPPORT IN THESE EFFORTS
FOLLOWING UP ON PRESIDENT FELLEMAN'S REMARKS AND FOLLOWING UP ON YOUR ORDER LAST MONTH SUPPORTING THE PREPARATION OF A PLAN TO INVENTORY, ECOLOGICAL, LAND USE AND RECREATIONAL SITE CONDITIONS OF THE 55 ACRE PARCEL WITHIN NORTH SEA TAK PARK
I WANTED TO SHARE A COUPLE OF THINGS
I'VE REVIEWED THE PROPOSED ELEMENTS OF THE INVENTORY AND HAD AN OPPORTUNITY TO TOUR THE PARK
LAST WEEK I WAS ABLE TO SEE SOME OF THE RECREATIONAL ACTIVITIES TAKING PLACE IN THE PARK
I APPRECIATE THE FORESIGHTEDNESS AND COMMITMENT TO THE COMMUNITY ON THE PORT OF THE PORT COMMISSION TO CREATE THIS GREAT SPACE WITH THE CITY OF SEATAC
AS NOTED, MY COMMUNICATION TO YOU LAST WEEK, I BELIEVE THAT ADDITIONAL TIME IS NEEDED TO DEVELOP THE INVENTORY WORK PLAN TO ENSURE IT MEETS THE OBJECTIVES OF THE COMMISSION
I'M REVIEWING IN DEPTH OF SCOPE, AS PRESIDENT FELLEMAN SAID IN OUR STAFF'S RECOMMENDATIONS FOR THE INVENTORY, I EXPECT I'LL HAVE A FURTHER UPDATE ON THE PLAN AT THE NOVEMBER 9 MEETING
IN OTHER NEWS, AS YOU KNOW, SINCE EARLY AUGUST, WE SAW AN ENORMOUS OPPORTUNITY TO SUPPORT AFGHAN REFUGEES, BEGINNING A NEW CHAPTER OF THEIR LIVES AND MAKING OUR REGION THEIR NEW HOME
THE PORT OF SEATTLE HAS A HISTORY OF STANDING WITH OTHER STATEWIDE LEADERS TO REJECT HATE AND DECLARE WASHINGTON AS A WELCOMING STATE FOR IMMIGRANTS TO ARRIVE HERE
THE PORT WAS GLAD TO HOST AND STAND WITH THE GOVERNOR AND A RANGE OF PARTNERS LAST FRIDAY TO REITERATE THAT MESSAGE ONCE MORE, COMMISSIONER CHO JOINED GOVERNOR INSLEE TO SHARE SOME OF THE LATEST EFFORTS THAT WE'VE UNDERTAKEN AT SEATTLE TACOMA INTERNATIONAL AIRPORT
THESE EFFORTS INCLUDE ESTABLISHING IN SEPTEMBER A WELCOME CENTER FOR REFUGEES AND DEDICATED WORKSPACE FOR RESETTLEMENT STAFF AT SEA
THE WELCOME CENTER IS AVAILABLE 24/7 AND INCLUDES FOOD DONATED BY OUR AIRPORT DINING AND RETAIL PARTNERS, INCLUDING OTHER DONATED GOODS FROM THE REGIONAL COMMUNITY ORGANIZATIONS
YOU'LL SEE SIGNAGE THROUGHOUT THE AIRPORT TO GREET REFUGEES IN ENGLISH, DARI AND PASHTO LANGUAGES
STAFF ENSURED RESETTLEMENT AGENCY PERSONNEL CAN ACCESS THE SECURE SIDE OF THE AIRPORT SO THEY CAN GREET REFUGEES AT THE GATE AS THEY ARRIVE
WE'RE ALSO COORDINATING WITH STATE AND LOCAL GOVERNMENT AGENCIES AND EXTERNAL PARTNERS TO EXPLORE WAYS WE CAN INTEGRATE REFUGEES INTO WELLPAYING JOBS WITHIN THE AVIATION, MARITIME WORKFORCE AND USE THIS OPPORTUNITY TO FURTHER STRENGTHEN THE ECONOMIC OPPORTUNITIES FOR ALL REFUGEES WHO ARRIVE IN OUR STATE
THE NATION IN OUR REGION SPECIFICALLY HAS PROVEN THAT WE CAN WELCOME REFUGEES AND HELP PUT THEM ON A SUCCESSFUL PATH THAT BENEFITS EVERYONE KNOW THAT STAFF ARE WORKING AROUND THE CLOCK TO CONTINUE THAT TRADITION
THANK YOU FOR YOUR LEADERSHIP AND SUPPORT AND A SPECIAL APPRECIATION TO COMMISSIONER CHO FOR JOINING THE GOVERNOR AT THE EVENT LAST WEEK
TURNING YOUR ATTENTION TO OUR MARITIME SECTOR
LAST WEEKEND WE HOSTED THE NORWEGIAN ENCORE, OUR LAST PASSENGER VESSEL VOYAGE OF THE 2021 SEASON
I'M PLEASED TO REPORT THAT IN A 90 DAY PERIOD, WE SAFELY HOSTED 82 SHIP CALLS AND 229,000 REVENUE PASSENGERS
RESTORING SAFE AND HEALTHY CRUISE OPERATIONS WAS FUNDAMENTAL TO OUR ECONOMIC RECOVERY STRATEGY
A TYPICAL CRUISE SEASON BRINGS IN NEARLY $900 MILLION IN BUSINESS REVENUE TO THE REGION AND SUPPORTS OVER 5000 JOBS WHILE STILL FAR BELOW THE ECONOMIC ACTIVITY OF A NORMAL YEAR
THE 2021 SEASON HELPED BUSINESSES AND THEIR FAMILIES IN WASHINGTON AND ALASKA TAKE A STEP TOWARDS MORE CERTAIN FINANCIAL TIMES AND ECONOMIC RECOVERY THROUGH OUR 2021 SEASON
WE ALSO MADE GOOD ON A PROMISE THAT CREWS WILL RETURN SAFER, STRONGER, AND MORE SUSTAINABLE THAN EVER
PREPARATION AND PARTNERSHIP MADE THIS POSSIBLE
WE WORKED WITH ALL STAKEHOLDERS, INCLUDING PUBLIC HEALTH OFFICIALS, CRUISE LINES, LABOR, AND LOCAL BUSINESSES, TO PUT HEALTH AND SAFETY FIRST, IMPLEMENT WORLD CLASS ENVIRONMENTAL MEASURES AND PROVIDE NEEDED ECONOMIC OPPORTUNITIES
WE ARE RECOVERING BUT NOT FULLY RECOVERED, AS GLOBAL CRUISE SCHEDULES CONTINUE TO BE IN FLUX
THE ROYAL CARIBBEAN'S OVATION OF THE SEAS WILL REMAIN IN AND AROUND PUGET SOUND DURING THE OFF SEASON
EVERY YEAR, WE ADVANCE OUR ECONOMIC SUSTAINABILITY GOALS AND OBJECTIVES
WE CAN ALWAYS DO MORE, AS PRESIDENT PHILLIP POINTED OUT, AND WE ARE ALREADY TURNING OUR ATTENTION TO WHAT WE CAN DO BETTER IN 2022
FINALLY, AS PART OF OUR RESILIENCY EFFORTS IN RESPONSE TO A MAJOR HAZARD OR EVENT, WE PARTICIPATED IN THE INTERNATIONAL REGIONAL SHAKEOUT EARTHQUAKE DRILL THIS WEEK
FOR THIS EXERCISE, THE PORT ADMINISTERED A PERSONAL ACCOUNTABILITY REPORT OR PAR AND A FACILITY ASSESSMENT REPORT, OR FAR LAST THURSDAY
THE PURPOSE OF THE SYSTEM IS TO PROVIDE THE PORT WITH IMMEDIATE ASSESSMENT OF OUR PERSONNEL AND FACILITIES FOLLOWING A MAJOR EVENT WITH A VIEW TO ASSESSING AND RESTORING OUR CRITICAL MARITIME AND AVIATION GATEWAYS AS SOON AS POSSIBLE
AFTER THE EVENT, ALL PORT EMPLOYEES WERE CONTACTED VIA EVER BRIDGE MASS NOTIFICATION SYSTEM
THIS EXERCISE OFFICIALLY RUNS THROUGH THIS THURSDAY
THE PORT WILL CONTINUE TO BUILD EMPLOYEES, PREPAREDNESS AND IMPROVE THE SYSTEM THROUGHOUT THESE SEMIANNUAL EXERCISES AND OUR PLANNING EFFORTS
MOVING TO TODAY'S COMMISSION MEETING, I'D LIKE TO HIGHLIGHT A FEW THEMES
SEVERAL ITEMS ON OUR CONSENT AGENDA RELATE TO OUR CORE MISSION OF PRESERVING AND MAINTAINING THE INFRASTRUCTURE OF OUR CRITICAL GATEWAY
ASSET PRESERVATION ITEMS INCLUDE ITEM EIGHT E, WHICH WILL REHABILITATE THE FENDER SYSTEM APPEAR 66 THAT WERE ORIGINALLY INSTALLED IN 1998
ITEM EIGHT F WILL REHABILITATE PILE CAPS ON THE EAST SIDE OF PEER 90 AND TERMINAL 91 AND ITEM EIGHT G WILL REPLACE DOMESTIC UNDERDOCK WATER LINES AT PEER 90 AND 91
THERE'S ALSO A NUMBER OF ITEMS ON TODAY'S AGENDA TO DEMONSTRATE OUR COMMITMENT TO GREENHOUSE GAS REDUCTION AND ENVIRONMENTAL STEWARDSHIP, WHICH COMMISSIONER FELLEMAN HIGHLIGHTED AS WELL
ITEM 80 ON OUR CONSENT AGENDA IS AN AUTHORIZATION TO EXPAND SNOW STORAGE AT SEA WHEN UNTREATED MELTWATER DISCHARGES OUTSIDE THE DESIGNATED AREAS
IT CAN NEGATIVELY IMPACT WATER QUALITY AND ADJACENT CREEKS AND PUT US OUT OF COMPLIANCE WITH OUR PERMIT REQUIREMENTS
THIS PROJECT WILL EXPAND THE DESIGNATED AREAS AVAILABLE FOR SNOW STORAGE AND PROVIDE A REGULATORY COMPLIANT CAPTURE OF MELTWATER FOR TYPICAL WINTER SNOW EVENTS
THERE ARE ALSO A NUMBER OF NEW BUSINESS ITEMS RELATED TO OUR ENVIRONMENTAL EFFORTS
FIRST, YOU WILL RECEIVE A BRIEFING AND RECOMMENDATION TO MODIFY OUR GREENHOUSE GAS OBJECTIVES THAT WILL BE FOLLOWED BY COMMISSION ORDER TO ACCELERATE OUR REDUCTION TARGETS AND THEN A FIRST READING OF RESOLUTION TO ADOPT CHARTING, OF COURSE, TO ZERO
THESE ACTIONS REFLECT OUR COMMITMENT TO BECOMING THE GREENEST AND MOST SUSTAINABLE PORT IN NORTH AMERICA
FINALLY, YOU ALSO BE BRIEFED ON OUR FIVE YEAR PLAN OF FINANCE TO SUPPORT OUR CAPITAL INVESTMENTS IN AVIATION, MARITIME AND ECONOMIC DEVELOPMENT PROJECTS
THIS WILL INCLUDE A DISCUSSION ABOUT OUR RECOMMENDATIONS FOR THE FORT'S PROPERTY TAX LEVY FOR NEXT YEAR AS WELL
MORE TO SAY THAT ON THE AGENDA
WHEN I INTRODUCED THE ITEM, COMMISSIONER CHO CONCLUDES MY REMARKS
THANK YOU
YOU'RE MUTED, COMMISSIONER FELLEMAN
YOU'RE STILL MUTED, SIR
I'M SORRY FOR THAT
MOVING ON
DO WE HAVE ANY COMMITTEE ACTIONS, AARON, THAT YOU WOULD LIKE TO TELL US ABOUT? YES
THANK YOU
COMMISSION PRESIDENT FELLEMAN
THERE WERE NO COMMITTEE MEETINGS
WAIT
THERE WERE NO COMMITTEE MEETINGS IN THE LAST TWO WEEKS
ACTUALLY, WE DID HAVE STARTED A CC COMMITTEE ON OCTOBER 19 THAT WAS CONVENED BY COMMISSIONERS BOWMAN AND STEINBRUECK
THE FIRST PORTION OF THE MEETING WAS PUBLIC AND NOTICED AS WE HAD A QUORUM WITH BOWMAN, STEINBRUECK, AND CALKIN PARTICIPATING, THE THREE COMMISSIONERS RECEIVED A BRIEFING TO DISCUSS ZERO EMMISSION CRUISE VEHICLES
WHILE THOSE SPECIFIC RECOMMENDATIONS WERE DEVELOPED, DISCUSSIONS INCLUDING SETTING GOALS WITH CRUISE LINES AND ENGAGING WITH OUR PARTNERS IN ALASKA
THE COMMITTEE ALSO RECEIVED AN UPDATE ON THE C1 DESIGN PROCESS AT THE AIRPORT
THERE WAS ALSO DISCUSSION AROUND WATER SAVING SYSTEMS, LIFE CYCLE COSTS, THE COSTS AND BENEFITS OF SOLAR ENERGY
FINALLY, DISCUSSION ON SINGLE USE PLASTICS, WHICH LARGELY DEFERRED UNTIL THE NEXT MEETING OF THE COMMITTEE
THE AVIATION COMMITTEE WAS SCHEDULED TO MEET, BUT WE BROKE UP THAT AGENDA TO HAVE COMMISSIONER STEINBRUECK AND CALKINS REVIEW THE WINE ARRIVALS PRESENTATION
THE COMMITTEE HAS BEEN RESCHEDULED TO NOVEMBER 11 TO REVIEW THE ADR AIRPORT DINING AND RETAIL MASTER PLANNING EFFORT THAT CONCLUDES MY REPORT
THANK YOU
THANK YOU FOR THAT
ARE THERE ANY FOLLOW UP QUESTIONS FOR AARON REGARDING THE COMMITTEE REPORT? I DON'T SEE ANY AT THIS TIME, SO THE COMMISSION WILL NOW ACCEPT GENERAL PUBLIC COMMENTS FROM THOSE WHO'VE SIGNED UP TO SPEAK ON ITEMS RELATED TO THE PORT
WRITTEN MATERIALS PROVIDED TO THE CLERK WILL BE INCLUDED IN TODAY'S MEETING
RECORD
THE CLERK HART A LIST OF ALL THOSE PREPARED TO SPEAK AS THE CLERK CALLS
YOUR NAME WILL OPEN THE LINE AND COMMENTERS WILL HAVE TO UNMUTE THEMSELVES
THEN PLEASE REPEAT YOUR NAME
FOR THE RECORD
IF YOU'RE ON THE TEAM'S MEETING AND ARE ALSO STREAMING THE MEETING, PLEASE MUTED THE VIDEO
TO AVOID FEEDBACK, PLEASE NOTE THAT THERE WILL BE A SHORT TIME LAG ON THE VIDEO STREAM COMMENT PERIOD WILL BE LIMITED TO TWO MINUTES PER PERSON
CLERK HART, PLEASE CALL THE ROLL
CLERK HART?
I DO HAVE A LIST OF THE SPEAKERS AS WELL, BUT I WOULD IMAGINE CLARK WOULD LIKE TO INITIATE THAT, BUT WE DO HAVE DEBORAH SMITH HERE OR HER REPRESENTATIVE THEREOF FROM CD LIGHT, SO I REALLY DO APPRECIATE YOU TAKING THE TIME TO BRING US
I SEE THAT CLERK HART NEEDS TO LEAVE THE MEETING AND COME BACK TO REGAIN HER AUDIO
BUT PERHAPS YOU COULD SAY YOUR NAME AND AFFILIATION FOR THE RECORD, DEBORAH, THANK YOU FOR JOINING US
THANK YOU SO MUCH
PRESIDENT FELLEMAN AND COMMISSIONER CHO, ALSO EXECUTIVE DIRECTOR METRUCK
MY NAME IS DEBORAH SMITH, AND I'M THE GENERAL MANAGER AND CEO OF SEATTLE CITY LIGHT
AND I'M JUST HERE TO APPRECIATE THE GOOD WORK THAT WE'RE DOING TOGETHER AND THE SPIRIT OF COOPERATION AND COLLABORATION THAT WE HAVE FOUND
CITY LIGHTS PLEASED TO PARTNER WITH BOTH THE PORT AND NORTHWEST SEAPORT ALLIANCE ON THE SEATTLE WATERFRONT CLEAN ENERGY STRATEGY
WE'RE EXCITED TO FOLLOW THROUGH ON A COMMITMENT WE MADE WITH THE PORT OVER TWO YEARS AGO TO JOINTLY CREATE A CLEAN ENERGY FUTURE THAT WILL BENEFIT OUR CUSTOMERS, THE REGION, AND ITS RESIDENTS
SEATTLE THE CITY OF SEATTLE HAS AN AMBITIOUS TARGET TO ACHIEVE NET ZERO GREENHOUSE GAS EMISSIONS BY 2050, WITH CHECK INS ALONG THE WAY
THE WATERFRONT CLEAN ENERGY STRATEGY WILL HAVE MAJOR POSITIVE IMPACTS ON REGIONAL GREENHOUSE GAS EMISSIONS AND OUR LOCAL AIR QUALITY
CITY LIGHT IS POSITIONED TO BE A MAJOR PART OF HELPING THE PORT REACH THIS TARGET BY ENABLING AND FACILITATING ELECTRIFICATION AS OUTLINED IN OUR TRANSPORTATION ELECTRIFICATION STRATEGIC INVESTMENT PLAN
AND THAT IS A MOUTHFUL I WILL TELL YOU AND OUR STRATEGIC PLAN
THE UTILITY IS COMMITTED TO TRANSITIONING MARITIME TRANSPORTATION CUSTOMERS FROM EMISSION BASED TECHNOLOGIES TO CLEAN ENERGY
THE BENEFITS OF THIS ELECTRIFICATION EFFORT EXTEND BEYOND THE MARITIME SECTOR
THIS WORK WILL HELP ADDRESS ENVIRONMENTAL BURDENS THAT HAVE BEEN BORN BY HISTORICALLY DISADVANTAGED COMMUNITIES ALONG THE WATERFRONT INTO WALMART RIVER WATERSHED
CURRENTLY, THE CITY ESTIMATES, CITY LIGHT ESTIMATES MARITIME TRANSPORTATION ELECTRIFICATION WILL RESULT IN MORE THAN 100 MW OF POTENTIAL NEW LOAD BY 2040 ALONG THE WATERFRONT
AND I WANT TO ASSURE YOU THAT WE ARE WELL EQUIPPED TO DEAL WITH THE IMPACTS OF THAT ADDITIONAL LOAD
AND WE ARE LOOKING CREATIVELY AND AT INNOVATIVE SOLUTIONS THAT WILL HELP US MEET THAT LOW GROWTH AND REALIZE THE SUBSTANTIAL ENVIRONMENTAL AND ECONOMIC BENEFITS
HOWEVER, CONGESTED STREETS DO MAKE UTILITY DESIGN PERMITTING AND CONSTRUCTION PROHIBITIVELY EXPENSIVE AND CHALLENGING ALONG THE WATERFRONT
THEREFORE, PROACTIVE CAPITAL INVESTMENT PLANNING IS CRITICAL, AND THAT'S WHY THE PARTNERSHIP IS SO IMPORTANT TO US, BECAUSE IF WE CAN WORK TOGETHER ON THE FRONT END, WE CAN CREATE SOLUTIONS THAT BOTH MOVE US ALONG ON OUR SHARED EMISSIONS GOALS BUT ALSO ARE THE LEAST DISRUPTIVE TO THE COMMUNITIES AND THE PEOPLE THAT WE SERVE
THE OUTPUTS OF THE WATERFRONT CLEAN ENERGY STRATEGY WILL HELP CITY LIGHT IDENTIFY AND PRIORITIZE PLANNING EFFORTS, FUNDING OPPORTUNITIES, AND CAPITAL IMPROVEMENT PROJECTS
AND LASTLY, OUR PARTNERSHIP WITH THE PACIFIC NORTHWEST NATIONAL LAB AND OUR CONTINUED JOINT ADVOCACY FOR STATE FEDERAL CLEAN ENERGY POLICY AND INVESTMENTS ARE CRITICAL TO SUCCESSFULLY IMPLEMENTING THE STRATEGY
AND I JUST WANT TO SAY IT IS A PLEASURE WORKING WITH YOUR TEAM
AND TOGETHER, WE ARE NOT ONLY WORKING TO CLEAN UP SEATTLE, BUT WE ARE REPRESENTING THE FUTURE
AND A LOT OF FOLKS ARE LOOKING AT WHAT WE ARE DOING, AND I KNOW THAT WE ARE DOING IT WELL AND WE WILL HAVE TREMENDOUS SUCCESS
THANK YOU SO MUCH FOR YOUR TIME TODAY
WELL, THANK YOU, DEBORAH, FOR THAT PARTNERSHIP AND THE LEADERSHIP OF CITY LIGHT FOR MANY YEARS
I WOULD LIKE TO JUST SEE IF OUR COMMISSIONERS HAVE ANY QUESTIONS FOR YOU, GIVEN THAT YOU ARE VALUING YOURSELF TO US IN THIS TIME AND REALLY ARE VERY EXCITED ABOUT PROCEEDING WITH YOU
AND I JUST WANT TO NOTE THAT WHETHER OR NOT THE COAST GUARD EXPANDS THEIR FOOTPRINT ON THE WATERFRONT, THEY WILL HAVE ADDITIONAL ELECTRICAL NEEDS FOR THEIR NEWER SHIPS AND LOOK FORWARD TO HAVING A FEDERAL PARTNERSHIP IN THAT REGARD AS WELL
BUT CLERK HART, IF YOU COULD QUICKLY GO THROUGH THE ROLE TO SEE IF WE CAN TAKE USE OF DEBORAH'S AVAILABILITY
CLERK HART, IF YOU'RE STILL HAVING A CHALLENGE, I WILL CALL AROUND THE HORN HERE
I SEE
PETER
COMMISSIONER STEINBRUECK, DO YOU HAVE YOUR HAND UP? YEAH, I CAN WAIT IF THERE ARE OTHERS, IF YOU'RE GOING IN ORDER, BUT GO FOR IT
OKAY
THANKS SO MUCH, DEBORAH SMITH, IT'S GREAT TO HEAR AND SEE YOU IN VIRTUAL PERSON, AND IT TRULY IS A GREAT PARTNERSHIP, AND WE HAVE MUCH TO WORK FOR IN THE FUTURE
I DO WANT TO ASK YOU ONE SPECIFIC QUESTION THAT I CONTINUE TO HEAR RUMORED IS THAT WE'RE GOING TO RUN OUT A CLEAN ENERGY BEFORE LONG
AND WITH ALL THESE HOOKUPS AND ALL THE NEW DEMAND THAT IS BEING CREATED AS WE SWAP OUT FOSSIL FUELS FOR CLEAN HYDROELECTRIC POWER AND OTHER SOURCES, HOW WELL POSITIONED IS CITY LIGHT TO MAINTAIN AND CONTINUE THE CLEAN ENERGY IT PROVIDES INTO THE FUTURE? LET ME JUST MENTION I WAS ONE OF THE CITY COUNCIL MEMBERS WHO ADOPTED 100% RENEWABLE ENERGIES FOR CITY LIGHT WHEN I SERVED ON THE CITY COUNCIL
AND I THANK YOU FOR FULFILLING THAT MISSION
THANK YOU SO MUCH, COMMISSIONER CHO
SO I KNOW THAT QUESTION FREQUENTLY COMES UP
WE ARE FORTUNATE AND BLESSED TO BE A LONG UTILITY, WHICH MEANS IN THE COURSE OF A YEAR WE GENERALLY HAVE MORE POWER AVAILABLE TO US BOTH WHAT WE GENERATE AND WHAT'S UNDER CONTRACT TO US FROM THE BONNEVILLE POWER ADMINISTRATION AND OTHERS TO MEET OUR LOAD AND TO BE ACTIVE PARTICIPANTS IN THE WHOLESALE MARKET
SO WHILE ON ANY GIVEN DAY, WE ARE OFTEN BUYING AND SELLING, WE DO BELIEVE THAT WE HAVE ADEQUATE TIME
AND THAT'S PART OF WHY THIS COOPERATIVE PLANNING IS SO IMPORTANT TO US THAT WE HAVE THE OPPORTUNITY TO LEARN FROM AND UNDERSTAND WHAT THE FUTURE PLANS OF THE PORT AND NORTHWEST SEAPORT ALLIANCE ARE AND WE CAN ARRANGE TO AND HAVE ADDITIONAL RESOURCES AVAILABLE
A COUPLE OF REALLY COOL THINGS ARE HAPPENING RIGHT NOW IN THE NORTHWEST
ONE IS A RESOURCE ADEQUACY PROGRAM THAT WILL ALLOW ALL OF THE UTILITIES IN THE NORTHWEST TO SHARE RESERVES AND TO ACCESS POWER WHEN NEEDED
AND THAT IS ONE STEP ALONG WHAT WILL LIKELY BE A CONTINUED TRANSITION IN THE WEST TO A MORE ORGANIZED MARKET
WE DON'T KNOW WHAT THAT WILL LOOK LIKE
WE DON'T KNOW THAT IT WILL EVER BE AN RTO PER SE, BUT WE DO KNOW THAT ORGANIZED MARKETS ALLOW US TO INTEGRATE MORE RENEWABLE RESOURCES
THEY MAKE IT COST EFFECTIVE AND EFFICIENT, AND THEY ALLOW US TO TAKE ADVANTAGE BEST ADVANTAGE OF THE TRANSMISSION ASSETS WE HAVE
SO I AM NOT WORRIED
AND I AM THANKFUL THAT WE GET TO WORK WITH STEVE AND OTHERS NOW SO THAT WE CAN ANTICIPATE THOSE NEEDS AND PLAN FOR THEM
THANK YOU
VERY GOOD
I UNDERSTAND THAT CLAIRE CARD IS STILL HAVING CHALLENGES WITH HER CONNECTION, BUT AUBREE, WERE YOU GOING TO GO THROUGH THE REST OF THE COMMISSIONERS OR I CAN JUST CONTINUE COMMISSIONER CHO UP
THANK YOU
COMMISSIONER FELLEMAN, CEO SMITH, THANK YOU FOR JOINING US
THANK YOU FOR THE SUPPORTING WORK ON ALL OF THIS AND THE OPPORTUNITY FOR COLLABORATION MOVING FORWARD
PETER ANTICIPATED MY FIRST QUESTION, WHICH WAS HOW COMFORTABLE DO YOU FEEL ABOUT MEETING THE INCREASED DEMAND THAT MIGHT COME FROM ADDITIONAL HOOKUPS AT THE WATERFRONT AND THE CONVERSION OF MUCH OF OUR TRANSPORTATION GRID AND POTENTIALLY OUR RESIDENTIAL AND COMMERCIAL BUILDINGS TO ELECTRICITY FROM NATURAL GAS? FOR ME, THE COMMENT I WOULD SHARE IS THAT IS JUST TO MAKE YOU AWARE THAT WE ARE QUITE INTERESTED IN THE NASCENT PACIFIC COAST OFFSHORE RENEWABLE ENERGY MARKET, IN PARTICULAR
INITIALLY, THE PLANS BY CALIFORNIA IN OREGON TO TRY TO BRING ONLINE FLOATING OFFSHORE WIND TURBINES AND THE POTENTIAL FOR THE PORT OF SEATTLE AND PORT TACOMA THROUGH THE SEAPORT ALLIANCE TO PARTICIPATE AS PART OF THAT SUPPLY CHAIN
BUT MY HOPE IS THAT DOWN THE ROAD, WE WOULD GET TO THE PORT WHERE THAT INDUSTRY WAS MATURE ENOUGH, AND OUR NEED IN SEATTLE WAS GREAT ENOUGH THAT WE COULD POTENTIALLY BE SERVING OURSELVES HERE IN SEATTLE WITH SOME OF THAT OFFSHORE RENEWABLE ENERGY, PARTICULARLY AS WE THINK ABOUT WAYS THAT IT MIGHT SERVE A GREEN HYDROGEN MARKET THAT COULD REPLACE SOME OF OUR FOSSIL FUELS IN HEAVY INDUSTRY AND IN SHIPPING
I JUST WANT TO MAKE YOU AWARE THAT THAT IS A PROJECT
WE'RE HOPING TO PASS A BUDGET WITH SOME FUNDING FOR A STUDY OF THE ROLE THAT THE PORT OF SEATTLE COULD PLAY IN OFFSHORE WIND ON THE WEST COAST
AND I PROMISE TO KEEP YOU INFORMED AS WE MOVE FORWARD AND LEARN MORE ABOUT IT
THAT WOULD BE SO AWESOME
AND JUST NOTE TO YOU BEFORE I CAME TO SEATTLE, I ACTUALLY WAS THE GENERAL MANAGER OF A TRANSMISSION AND DISTRIBUTION UTILITY ALONG THE OREGON COAST, AND SO HAVE QUITE A BIT OF FAMILIARITY NOT ONLY WITH OFFSHORE WIND AND PARTICIPATE IN A STUDY PROJECT WITH THE GOVERNOR OF OREGON AT THE TIME, BUT ALSO TAKE A LOOK AT OFFSHORE WAVE ENERGY, WHICH IS ALSO VERY COOL
AND THE UTILITY THAT I WORKED WITH CENTRAL LINCOLN PUD, IS ACTUALLY THE SITE OF ONE OF THE TEST BEDS THAT IS BEING INTEGRATED INTO THE GRID OFF OF IN BETWEEN NEWPORT, OREGON AND JUST SOUTH OF THERE
SO I WORKED WITH DOE ON THAT AND OREGON STATE UNIVERSITY, WHO WAS KIND OF IN A LEAD ROLE
SO THERE IS HUGE OPPORTUNITY, AND I THINK THE GOAL IS TO BRING COSTS DOWN, OBVIOUSLY, AND IT SEEMS TO ME OR IT STRIKES ME THAT THE PORT COULD BE A REALLY INTERESTING THERE COULD BE A REALLY INTERESTING BUSINESS MODEL FOR THAT
I'D LOVE TO TALK TO YOU ABOUT IT FURTHER
YOU BET WE'LL GET COFFEE
THANK YOU
I'D LOVE THAT
TAKE CARE
THANK YOU
COMMISSIONER CHO
HI
THANK YOU SO MUCH FOR BEING HERE WITH US
DEBORAH, I REALLY APPRECIATE YOU MAKING TIME
I ALSO WOULD LOVE TO GET COFFEE WITH YOU, FIRST OF ALL, BUT IN PARTICULAR, BECAUSE I THINK AS WE TALK ABOUT ELECTRIFICATION AND SUSTAINABILITY ON THE WATERFRONT, I THINK THERE'S SPACE FOR US TO GO TO OUR PARTNERS IN THE STATE LEGISLATURE FOR SOME HELP
SO I WOULD REALLY LOVE TO SEE THE PORT OF SEATTLE AND CITY LIGHTS WORK TOGETHER IN OLYMPIA TO SEE WHAT WE CAN DO ON A STATE LEVEL TO GET SOME SUPPORT
AND SO WE WOULD LOVE TO CHAT ABOUT THAT WITH YOU WHEN WE GET OUR COFFEE
I THINK THAT'S GREAT
AND I THINK WE ARE BUILDING SOME GREAT SUCCESS
AND I DIDN'T REALLY TALK ABOUT THE HYDRO PIECE, BUT SOME OF THE WORK THAT WE ARE DOING COLLABORATIVELY IS LOOKING AT HYDROGEN APPLICATIONS
AND WE ARE WORKING WITH MY COMMENT ABOUT WORKING WITH THE NATIONAL LABS
WE COMMITTED AT THE START OF THE PANDEMIC TO PUT TOGETHER A PORTFOLIO OF PROJECTS
A NUMBER OF THEM INVOLVED THE PORT AND SEE PORT ALLIANCE
AND WE ARE ACTIVELY OUT RECRUITING FOR FUNDS
AND AS YOU WELL KNOW, A LOT OF TIMES, THAT MEANS COMBINING STATE, FEDERAL AND OTHER FUNDING SOURCES
SO RIGHT NOW, WE'VE BEEN FORTUNATE TO RECEIVE SOME EARLY GRANTS AND STUDY GRANTS, AND WE ARE READY TO ROLL WHEN INFRASTRUCTURE FUNDING ACTUALLY BECOMES AVAILABLE
SO I'D LOVE TO TALK WITH YOU ABOUT THAT
PERFECT
EXACTLY WHAT I MEANT
THANK YOU SO MUCH
THANK YOU
THANK YOU SO MUCH FOR THAT
COMMISSIONER BOWMAN, DO YOU HAVE ANY CAFFEINE YOU'D LIKE TO DRINK WITH CEO SMITH? I ALSO DRINK WINE JUST SO YOU KNOW, I DRINK COFFEE AND I DRINK WINE
WELL, THAT'S WHERE I WAS GOING
DEBORAH, YOU CAN MEET WITH THE GENTLEMAN FOR COFFEE, AND YOU AND I WILL DO WINE
AND CLEARLY, THERE'S A LOT TO TALK ABOUT
AND SO I JUST WANT TO THANK YOU FOR THE PARTNERSHIP
YOU'VE GOT AMAZING STAFF
AND I REALLY THINK YOU'RE TAKING SEATTLE CITY LIGHT IN A WONDERFUL NEW DIRECTION
AND WE DO HAVE SO MANY DOZENS OF OPPORTUNITIES TO REDUCE OUR CARBON FOOTPRINT, WHETHER IT'S ZERO MISSION DRAINAGE TRUCKS OR THE CRUISE VESSELS
AND, OF COURSE, LOTS OF THINGS AT THE AIRPORT AS WELL
SO REALLY APPRECIATE YOU THINKING OUTSIDE THE BOX AND LOOK FORWARD TO MEETING WITH YOU SOON AS WELL
THANKS VERY MUCH
AND I WILL JUST SAY I HAVE TO GIVE A SHOUT OUT TO MY COLLEAGUE, MARSHALL FOSTER, WHO I KNOW HAS DONE A TON OF WORK WITH YOU ALL
AND IT WAS WHEN I WAS FAIRLY NEW TO THE CITY AND I'VE BEEN HERE NOW THREE YEARS THAT MARSHALL AND I STARTED TALKING ABOUT THIS CONCEPT OF ONE SEATTLE
AND WHAT IF WE REALLY WORK TOGETHER? AND THE PLACE WHERE WE THOUGHT ABOUT THAT FIRST WAS WITH RESPECT TO THE WATERFRONT DEVELOPMENT, TO WORK WITH THE PORT AND NORTHWEST SEAPORT ALLIANCE
SO I'M REALLY HAPPY TO CONTINUE TO BUILD ON THAT AND CAN'T THINK OF A BETTER PARTNER THAN ALL OF YOU
SO THANK YOU SO MUCH
THANK YOU, CEO SMITH
AND WHAT A GREAT WAY TO START OFF OUR MEETING, ALTHOUGH HE DID HAVE US RUN A LITTLE LONG, BUT I DO APPRECIATE THAT KICKING OFF THE CONVERSATION
THANK YOU FOR TAKING THE TIME
YOU HAVEN'T HEARD THE LAST OF US EXECUTIVE METRUCK
I'M SORRY ONCE WE'RE LATE, WE'RE LATE
DO YOU HAVE ANYTHING YOU'D LIKE TO ADD? NO
WE'RE A GREAT PARTNERSHIP WITH CITY LIGHT AND CEO SMITH, AND I WAS JUST WAVING GOODBYE TO HER
THAT'S ALL
COMMISSIONER CHO RIGHT THEN
VERY GOOD
SO FANTASTIC
I DON'T KNOW
DO WE HAVE CLERK HART BACK ON THE LINE? ARE YOU ABLE TO HEAR ME? YES
CAN YOU HEAR ME? YES
OKAY
PERFECT
THANK YOU
I'M SO SORRY FOR THE TECHNICAL DIFFICULTIES TODAY
LET ME GO AHEAD AND GET THE TIMER BACK UP
OUR NEXT SPEAKER IS LEAH MISICK
THANK YOU
HELLO, COMMISSIONERS
THANK YOU FOR THE OPPORTUNITY TO PROVIDE COMMENTS TODAY, AND WE ARE GOING TO TAKE THE CLIMATE SOLUTIONS AND I'D LIKE TO SPEAK TO THE PORT GREENHOUSE GAS EMISSIONS GOALS AND MCAP
I WANT TO START OFF BY EXPRESSING OUR STRONG SUPPORT FOR THE RECOMMENDATION TO ACCELERATE THE PORT EMISSION REDUCTION GOALS
THESE BETTER ALIGN WITH WHAT'S NECESSARY TO AVERT SOME OF THE PORT CONSEQUENCES OF THE CLIMATE CRISIS
WE'RE IN THE MIDST OF AN AMPLIFYING CLIMATE EMERGENCY, AND ALONG WITH MEETING EMISSION REDUCTIONS GOALS BY 2030, 2050 NEAR TERM EMISSION REDUCTIONS REALLY MATTER, SUPPORT UPDATING SCHOOLS IS IMPORTANT, BUT WE NEED TO RESPOND TO ACTIONS STARTING NOW TO MAKE THOSE GOALS MEANINGFUL
WHICH BRINGS ME TO THE MCAP
WE'RE OVERALL SUPPORT OF THE MCAP STRATEGIES AND ACTIONS
BUT WHEN I NOTE, WE REALLY NEED QUICK ACTION AT SCALE, THESE ACTIONS WILL NEED TO BE IMPLEMENTED IN A WAY SO THEY'LL MINIMIZE CURRENT DISPARATE AND NEGATIVE IMPACTS ON CERTAIN COMMUNITIES
AND SO BENEFITS FROM ACTION ARE SHARED EQUITABLY WITH THIS IN MIND, I WANT TO SHARE SUGGESTIONS FOR THE MCAP THAT ECHO COMMENTS WE SHARED EARLIER IN A LETTER, WE STRONGLY SUPPORT THE ACTION TO ELIMINATE FOSSIL GAS IN BUILDINGS AND IMMEDIATELY DISCONTINUE INSTALLATION OF FOSSIL GAS
NOT ONLY IS IT A POTENT GREENHOUSE GAS, BUT IT LEADS TO NEGATIVE HEALTH IMPACTS AND BUILDINGS
I WANT TO POINT OUT THE USE OF RENEWABLE NATURAL GAS AND BUILDINGS SHOULD BE DEEMPHASIZED IN THE PLAN, SINCE RNG IS OF LIMITED SUPPLY AND IT SHOULD BE DIRECTED TO ITS HIGHEST AND BEST USES WHERE ELECTRIFICATION IS MORE DIFFICULT
LIKE HEAVY INDUSTRY, WE ALREADY HAVE A PROVEN TECHNOLOGY TO POWER BUILDINGS IN A ZERO CARBON WAY, WHICH IS CLEAN ELECTRICITY
ON THE TRANSPORTATION SIDE, WE SUPPORT ACTIONS TO REPLACE FLEET VEHICLES WITH ELECTRIC VEHICLES AND PILOTING HEAVY DUTY EVS
WE'D ASK SUPPORT TO EXPLICITLY COMMIT TO ALL NEW VEHICLE AND SIMILAR EQUIPMENT PURCHASES BEING ELECTRIC UNLESS THERE'S ABSOLUTELY NOT AN ELECTRIC MODEL FOR THE NEW APPLICATION AND THE ASSET MUST BE IMMEDIATELY REPLACED
RELATEDLY THE PLAN DISCUSSES DROP IN FUELS WHICH ARE NOT ALL THE SAME
THE PORT SHOULD ONLY SUPPORT THOSE DROP IN FUELS THAT LEAD TO GREATEST EMISSION REDUCTIONS LIKE R 99 RENEWABLE DETAIL AND HIGHER BIOFUEL LENS
THEY SHOULD ALSO NOT BE USED AS AN OBSTACLE OR REASON DELAY ELECTRIFICATION AND I APPRECIATE HEARING FROM CITY MY CEO SMITH ON PARTNERING ON ELECTRIFICATION
THIS COLLABORATION IS REALLY IMPORTANT AND I REALLY ENCOURAGE YOU TO UTILIZE GREEN LEASE AGREEMENTS, WORK WITH THE SEAPORT ALLIANCE TO ACCELERATE DRAG ELECTRIFICATION, IMPLEMENT INCENTIVES AND POLICY TO EASE THE TRANSITION AND UTILIZE LAND FOR PROPERTY AND CHARGING
PLEASE CONTINUE TO ENGAGE WITH NEWPORT COMMUNITIES TO ADDRESS THEIR CONCERNS AND ENSURE THEY'RE BENEFITING
AND I'M HAPPY TO ANSWER ANY QUESTIONS OR DISCUSS
THANK YOU, EVERYONE
WELL, THANK YOU SO MUCH, LEAH
WE WILL DEFINITELY BE CONTINUING OUR PARTNERSHIP WITH CLIMATE SOLUTIONS, SO THANK YOU VERY MUCH
YES, THANK YOU VERY MUCH
APPRECIATE IT
MR COMMISSION PRESIDENT, OUR NEXT SPEAKER IS MIRANDA MARTY MIRANDA, IF YOU'RE ON THE TELEPHONE AT STAR SIX TO UNMUTE AND WE CAN GO BACK AND CALL FOR MIRANDA MOVING TO JORDAN VAN BOAST
JORDAN, ARE YOU ON THE LINE? GOOD AFTERNOON, PORT COMMISSIONER CHO, DIRECTOR METRUCK
MY NAME IS JORDAN VAN BOSS
I'M HERE TO SPEAK ABOUT THE PORT OF SEATTLE'S NEW CLIMATE GOALS
IN SHORT, THESE GOALS WOEFULLY FAIL TO ADDRESS THE SCOPE OF THE CLIMATE EMERGENCY, WHETHER IT'S ACHIEVING NET ZERO ON SCOPE ONE AND TWO BY 2040 OR CARBON NEUTRAL ON SCOPE THREE BY 2050, THESE TARGETS OUT 20 AND 30 YEARS ARE NOT GOING TO PREVENT EMISSIONS FROM CONTINUING TO RISE NOW
AND THAT'S WHAT WE NEED TO PLAN FOR
WITH EVERY BUNKER FUEL BURNING CRUISE SHIP PULLING AWAY FROM SEATTLE'S HARBOR AND HUNDREDS OF THOUSANDS OF AIR TRAVELERS WHO COME HERE TO BOARD A CRUISE, ANY HOPE OF LIMITING GLOBAL WARMING TO 1.5 DEGREES ABOVE PRE INDUSTRIAL BASELINE SLIPS FURTHER OVER THE HORIZON
THE LIVES OF MILLIONS OF PEOPLE AND BILLIONS OF ANIMALS AND MARINE SPECIES ARE ON THE LINE, AND IT GETS EXPONENTIALLY WORSE EVERY MOMENT WE DELAY WITH FALSE SOLUTIONS
DAYS AGO, HUNDREDS DIED IN INDIA AND NEPAL DUE TO RECORD BREAKING LATE MONSOON RAINS AND FLOODING
AND THEN THERE WAS THE HEAT DOME OF 2021
AND NOW THE BOMB CYCLONE JUST HIT
WHAT NEXT? WHILE NET ZERO IS STILL A BETTER GOLD AND CARBON NEUTRAL, BOTH ARE ROOTED IN A DEEP DENIAL OF THE SEVERITY OF THE CRISIS WE ARE IN AND THE APOCALYPTIC FUTURE THAT OUR CHILDREN MAY FACE TO AVERT THIS CRISIS
WE NEED TO CONFRONT OUR DENIAL, REIN IN OUR MAGICAL THINKING, AND REDUCE ALL NON ESSENTIAL EMISSIONS NOW NOT SETTING TARGETS FOR 30 YEARS AWAY THAT DEPEND UPON TECHNOLOGIES THAT AREN'T AVAILABLE
CRUISING IS A NON ESSENTIAL BUSINESS WITH A GIGANTIC EMISSIONS AND ECOLOGICAL FOOTPRINT, AND IT NEEDS TO END
THANK YOU
THANK YOU
JORDAN
NEXT SPEAKER CARD
YES
WE'LL GO BACK AND CALL FOR MIRANDA
MARTY MIRANDA, IF YOU'RE ON THE TELEPHONE, STAR SIX TO UNMUTE
HI, I'M MIRANDA MARTY, A VOLUNTEER WITH THE 350 SEATTLE MARITIME SOLUTIONS TEAM
WE'VE ENGAGED IN THE COMMENT PROCESS FOR THE PORT MARITIME CLEANER ACTION PLAN AND HAVE ALSO SUBMITTED A LONGER WRITTEN COMMENT FOR TODAY REGARDING CLIMATE GOALS AND THE MCAP
I'D LIKE TO HIGHLIGHT THE FIRST, WE SUPPORT THE EXECUTIVE DIRECTOR ADOPTING THE RECOMMENDED ACCELERATED CLIMATE TARGET, AND SECOND, WITHIN THE MCAP COMMON ACCOUNTABILITY FRAMEWORK, WE VIEW THE COMMITMENT TO REVIEW AND UPDATE IMPLEMENTATION PLANS AS CRITICAL TO ITS CREDIBILITY
ACCELERATING TARGETS AND TIMELINES IS ONLY MEANINGFUL IF THERE'S A REALISTIC PATH TO MEET THEM AND FOR REDUCING SCOPES REMISSIONS AND MCAP, THERE'S A RELIANCE ON ADVOCACY FOR POLICIES, REGULATIONS, AND TECHNOLOGY THAT DOESN'T EXIST
WE SUPPORT THE INVESTMENT IN ADVOCACY
ABSOLUTELY
BUT WE'D ALSO LIKE TO SEE CONTINGENCY PLANS IN CASE IT DOESN'T YIELD THE NECESSARY RESULTS, INCLUDING REDUCING THE NUMBER OF CRUISE CALLS TO ZERO
WE ALSO EXPECT TO SEE THE PORT DEMONSTRATE THAT THESE BOLD CLIMATE GOALS ARE ACHIEVABLE UNDER THE CURRENT STATE CHARTER FOR ECONOMIC GROWTH AND TO RECOGNIZE THAT THE EXTERNALIZED COSTS OF THE CLIMATE CRISIS CAN AND DO IMPACT THE PORTABILITY TO SUPPORT THEIR MANDATE FOR ECONOMIC GROWTH
AND IF THIS CAN'T BE ACHIEVED, WE EXPECT THE PORT OF SEATTLE TO WORK TO ALIGN THE STATE CHARTER FOR PART DISTRICTS WITH CLIMATE REALITIES AND ENVIRONMENTAL JUSTICE
AND THIRD, IN SOLIDARITY WITH THE DU AMASS RIVER CLEAN UP COALITION, WE'D LIKE TO AMPLIFY THE DEMANDS AND CONCERNS THAT THEY'VE RAISED IN WRITTEN COMMENTS TO THE PORT
ON PARTICULARLY HOW SPECIFICALLY, THE PORT WILL BE USING ITS POWER AND INFLUENCE TO SUPPORT REAL TIME AIR MONITORING IN THE DUWAMISH VALLEY THAT SUPPORT EXPAND AND DEVELOP MORE AREAS FOR CARBON SEQUESTRATION IN THE WALMART VALLEY AND THE PORT ENSURE THAT ANY PLANS MENTIONED IN THE MCAP FOR PURCHASE OF CARBON CREDITS BENEFIT THE DUWAMISH VALLEY
REGARDING THAT LAST POINT, THE 350 SEATTLE MARITIME SOLUTIONS TEAM DOES NOT SUPPORT THE USE OF CARBON OFFSETS TO ACHIEVE CLIMATE GOALS, WHICH WE HAVE PREVIOUSLY COMMUNICATED
BUT IF SUPPORT DOES MOVE FORWARD WITH THOSE PLANS, WE ABSOLUTELY AGREE THAT THEY SHOULD BE BENEFITING DWARF VALLEY COMMUNITIES
SO THANK YOU FOR YOUR TIME AND THANK YOU FOR MOVING YOUR CLIMATE GOALS FORWARD
WELL, THANK YOU, MIRANDA
AND JUST TO NOTE THAT THE PORT IS ONLY RELUCTANTLY SUPPORTING CARBON OFFSETS FOR THE SCOPE THREE EMISSIONS BECAUSE OF OUR LACK OF DIRECT CONTROL OVER THOSE THINGS
CLERK HART, NEXT SPEAKER, PLEASE
THANK YOU
YES
OUR NEXT SPEAKER IS LAURA GIBBONS
HI, THIS IS LAURA GIBBONS FROM SEATTLE, AND I WANT TO THANK YOU FOR RECOGNIZING THE SERIOUSNESS OF THE IMPACT OF AVIATION ON CLIMATE CHANGE BY STRENGTHENING THE PORT EMISSION TARGETS
I'M IMPRESSED BY YOUR AMBITIONS PLANS TO REDUCE SCOPE ONE AND TWO EMISSIONS, AND I AGREE THAT REDUCING SCOPE THREE EMISSIONS IS CHALLENGING
AS COMMISSIONER FELLEMAN JUST SAID, PROMOTION OF SO CALLED SUSTAINABLE AVIATION FUEL ISN'T GOING TO GET US THERE
IT DOESN'T REPRESENT A CREDIBLE POLICY TO ADDRESS AVIATION CLIMATE PROBLEM BECAUSE IT'S USED RESULTS IN ONLY SLIGHT REDUCTIONS OF CARBON DIOXIDE PER MILES FLOWN
AND AS YOU RECOGNIZE, THERE ARE LIMITED CAPACITY FOR BIOFUEL PRODUCTION
SUSTAINABLE AVIATION FUEL IS JUST NOT CAPABLE OF REDUCING US TO 2007 LEVELS BY 2050, ESPECIALLY GIVEN ANTICIPATED INCREASES IN FLYING
ALSO, AS OTHERS HAVE SAID, THE SCOPE THREE GOAL FOR CARBON NEUTRALITY IS AN INADEQUATE STANDARD BECAUSE IT DOESN'T REQUIRE ANY REDUCTIONS IN AVIATION EMISSIONS
PROBLEMS WITH OFFSET PROGRAMS ARE WELL DOCUMENTED AND ULTIMATELY OFFSETTING IS A FORM OF CARBON COLONIALISM TO ENABLE A SMALL SHARE OF THE WORLD'S POPULATION TO FLY WITH A CLEAR ENVIRONMENTAL CONSCIENCE
OTHERS BEAR THE COST PEOPLE WHOSE HISTORICAL CONTRIBUTION TO CLIMATE CHANGE IS NEGLIGIBLE AND WHO MAY ALREADY BE EXPERIENCING THE IMPACTS OF THE CLIMATE CRISIS
FOR THESE REASONS, I URGE YOU NOT TO USE CARBON NEUTRAL AS A GOAL
YOU TALK ABOUT SCOPE THREE EMISSIONS, AS, QUOTE, OUTSIDE THE PORT STRETCH CONTROL
BUT ACTUALLY, THERE IS SOMETHING YOU CAN DO
INSTEAD OF HOPING FOR
ELECTRIC OR HYDROGEN POWER PLANES MAKE THE SUSTAINABLE AIRPORT MASTER PLAN TRULY SUSTAINABLE BY REFLECTING THE NECESSARY REDUCTION IN FLYING RATHER THAN A MASSIVE INCREASE
IF YOU FEEL YOU CANNOT DO THAT UNDER RCW 53, THEN THE PORT MUST ADVOCATE FOR UPDATING THE LAW TO REFLECT THE CURRENT CLIMATE CRISIS
THANK YOU FOR HEARING MY OPINION
WELL, THANK YOU VERY MUCH, LAURA
AND DO NOTE THAT WE'RE SEEKING NET ZERO BY 2040 FOR SCOPE ONE AND TWO, AND THE CARBON NEUTRAL IS ONLY FOUR
SCOPE THREE
YES
THANK YOU AGAIN
NEXT SPEAKER
YES
OUR NEXT SPEAKER IS ALEXA FE
HI
MY NAME IS ALEXA FE
I'M A RESIDENT OF SEATTLE AND A REGISTERED NURSE
I JUST WANTED TO THANK THE PORT FOR RECOGNIZING THE SERIOUSNESS OF THE IMPACT OF AVIATION AND MARITIME ON CLIMATE CHANGE AND STRENGTHENING THE PORT AND MISSIONS TARGETS
WHILE I ACKNOWLEDGE THAT CUTTING EMISSIONS FROM SCOPE THREE IS DIFFICULT, I'M CONCERNED THAT THE SCOPE THREE GOAL DOES NOT REQUIRE ANY REDUCTIONS IN EMISSIONS AND INSTEAD WILL ALLOW OFFSETS TO ALLOW PEOPLE IN THE GLOBAL NORTH WHO CAN AFFORD TO FLY TO DO SO WITH A FREE CONSCIENCE, WHILE OTHERS IN THE GLOBAL SOUTH BEAR THE COSTS, EVEN THOUGH THEY HAVE NEGLIGIBLY CONTRIBUTED TO THE CLIMATE CRISIS
I URGE SUPPORT NOT TO PARTICIPATE IN THIS FORM OF CARBON COLONIALISM AND NOT USE CARBON NEUTRAL AS A GOAL
THE PROMOTION OF SUSTAINABLE AVIATION FUEL ALSO IS NOT AN ACCEPTABLE POLICY TO CHANGE AVIATION CLIMATE PROBLEM AS IT ONLY RESULTS IN SLIGHT CO2 REDUCTIONS AND WOULD TAKE VAST AMOUNTS OF LAND TO PRODUCE
FURTHERMORE, ULTRAFINE PARTICLES FROM BIOFUELS CAUSED DIFFERENT AND POTENTIALLY MORE DANGEROUS LUNG RESPONSES THAN THOSE FROM CONVENTIONAL FUEL
GIVEN THE ANTICIPATED INCREASE IN FLYING, SUSTAINABLE AVIATION JUST IS NOT CAPABLE OF REDUCING EMISSIONS TO 2000 LEVELS BY 2050
THE PORT HAS A LOT OF CONTROL ON SCOPE THREE EMISSIONS, EVEN THOUGH THEY MAY SAY IT IS OUT OF THEIR DIRECT CONTROL
CHANGING THE AIRPORT MASTER PLAN TO REFLECT THE NECESSARY REDUCTION IN FLYING INSTEAD OF MASSIVELY INCREASING, IT WOULD CUT DOWN ON AVIATION EMISSIONS AND WILL NOT ONLY BENEFIT THE ENVIRONMENT BUT WILL ALSO BE BENEFICIAL TO HUMAN HEALTH
BY DECREASING THE AMOUNT OF FLIGHTS FROM SEATAC
WE CAN ALSO DECREASE THE NUMBER OF RESPIRATORY AND CARDIAC ISSUES FOR THOSE LIVING NEAR THE AIRPORT
THE PORT DECISIONS DIRECTLY IMPACT HUMAN HEALTH, AND IT SHOULD STAND UP TO THE STATUS QUO AND TAKE ACTION FOR THE PROTECTION OF OUR HEALTH AND ENVIRONMENT
THANK YOU
WELL, THANK YOU, IRIS
BOTH YOU AND THE PREVIOUS SPEAKERS SPOKE TO THE LACK OF CARBON REDUCTION FROM SOUTH SUSTAINABLE AVIATION FUELS
IT'S OUR UNDERSTANDING THAT YOU CAN GET AN 80% REDUCTION AND WE'RE PURSUING ONLY WASTE MATERIALS IN THAT REGARD
WE HAVE A STUDY THIS YEAR WITH KING COUNTY COMING UP LOOKING AT MUNICIPAL SOLID WASTE OF THAT SOURCE
SO IT IS EVERYBODY RECOGNIZING THE NEAR TERM BEST THING THAT CAN BE DONE FOR AVIATION SHORT OF STOPPING PEOPLE FROM FLYING, WHICH IS NOT IN OUR PURVIEW ANYWAY
SO THANK YOU FOR THOSE COMMENTS, IRIS
AND PLEASE OUR NEXT SPEAKER
I'M SORRY IF YOU HAVE A CITATION THAT ADDRESSES THAT THE AIR POLLUTANTS FROM SUSTAINABLE AVIATION FUELS ARE SOMEHOW WORSE FOR THE HEALTH, COULD YOU PLEASE PROVIDE THAT, TOO? FOR THE RECORD, I AM VERY INTERESTED IN HEARING MORE ABOUT THAT
I'M SORRY
CLEAR PART WHAT WE SAY
YES, MR COMMISSION PRESIDENT
JUST NOTING THAT WITH ALEXA AND WE'RE MOVING TO IRIS ANTMAN, MY SORRY
ALL RIGHT, IRIS, IF YOU'RE ON THE LINE
YES, I AM
GOOD AFTERNOON
MY NAME IS IRISH ANTMAN, AND I'M HERE TO SPEAK ABOUT YOUR EMISSION REDUCTION GOALS
THE NEW GOALS FOR SCOPE ONE AND TWO EMISSIONS OF NET ZERO OR BETTER BY 2040 IS NOT ADEQUATE
IT IS BASED ON WISHFUL THINKING RATHER THAN ON THE REALITY OF WHAT PHYSICS TELLS US IS NECESSARY
PETER CALMNESS, A CLIMATE SCIENTIST AT NASA'S JET PROPULSION LAB, SAYS, QUOTE, ANY NET ZERO GOAL MUST BE PAIRED WITH A COMMITMENT TO ANNUAL REDUCTIONS LEADING STEADILY TO THIS GOAL, YEAR BY YEAR AND BINDING PLANS ACROSS ALL LEVELS OF GOVERNMENT TO ACHIEVE THOSE ANNUAL TARGETS
END QUOTE, DO YOU HAVE ANNUAL REDUCTION GOALS? WHAT ARE YOUR PLANS FOR WORKING WITH OTHER GOVERNMENTAL ENTITIES? CALMNESS CONTINUES
NET ZERO IS WISHFUL THINKING BECAUSE IT ASSUMES A KNOCKOUT TECHNOLOGICAL BREAKTHROUGH IN CARBON CAPTURE THAT IS NOWHERE ON THE HORIZON
AND SAYING NET ZERO IS LIKE A MAGICAL THINKING TERM USED AS A FRIENDLIER WAY OF DENYING THE CLIMATE CRISIS THAT EXISTS NOW CALMNESS AND OTHERS LIKE CANADA SETH KLEIN, A PUBLIC POLICY RESEARCHER, ARE CALLING FOR SOCIETY TO SHIFT INTO EMERGENCY MODE WITH A WORLD WAR II, HERCULEAN EFFORT TO TACKLE THE CLIMATE CRISIS
YET WE HEAR THAT THE PORT IS EXCITED FOR A RETURN IN 2022 THROUGH CRUISING COMPARABLE TO 2019 LEVELS
THE GOALS FOR SCOPE THREE EMISSIONS IS EVEN WORSE
CARBON NEUTRAL MEANS ALLOWING CONTINUED CARBON EMISSIONS WITH THE PROMISE OF OFFSETTING THOSE EMISSIONS ELSEWHERE, A STRATEGY THAT HAS NOT BEEN SHOWN TO BE EFFECTIVE, NOR DOES IT DECREASE THE TOTAL AMOUNT OF CARBON IN THE ATMOSPHERE
THIS IS INCOMPATIBLE WITH ENVIRONMENTAL SUSTAINABILITY
WE ALL KNOW THIS YET YOU CONTINUE ON AS IF IT ISN'T TRUE
AS ELECTED PORT COMMISSIONERS, YOUR DUTY IS TO SERVE THE PUBLIC, AND IT TRULY PAINS ME TO SAY THIS, BUT I THINK YOU'RE ACTING IN BAD FAITH
WE NEED TO MAKE REAL AND BOLD CHANGES IN HOW WE LIVE
PLEASE END NONESSENTIAL
PLEASURE CRUISING
THANK YOU
ALL RIGHT
OUR NEXT SPEAKER HEART
THANK YOU
OUR NEXT SPEAKER IS STACEY OAKS
STACY, IF YOU'RE ON THE TELEPHONE
STAR SIX TO UNMET
STACEY DID CHECK IN BEFORE THE MEETING STARTED, SO WE WILL COME BACK TO HER MOVING TO ADRIAN HAMPTON CLARIDGE HELLO, ALL
I AM ADRIAN HAMPTON
I USUALLY HER PRONOUNS AND I'M WITH THE DRAMAS RIVER CLEAN UP COALITION
THANK YOU FOR THE OPPORTUNITY TO SHARE COMMENTS TODAY WITH YOU ALL WE HAVE WITNESSED THE PORT OF SEATTLE STAFF WORK HARD TO RESPOND TO COMMUNITY RECOMMENDATIONS FOR THE MARITIME CLIMATE AND AIR ACTION PLAN
WE APPRECIATE BEING HEARD AND ARE EXCITED ABOUT THE PROPOSAL TO ACCELERATE EMISSION TARGETS
THE MCAP IS ROBUST AND NEXT STEPS AND BECAUSE OF ITS COMMITMENTS, WE ARE COUNTING ON THIS PLAN FOR US
THIS IS ABOUT THE FIGHT FOR ENVIRONMENTAL JUSTICE AND SOCIAL RESPONSIBILITY, DISRUPTING THE LEGACY OF HARM TO HEALTH IN THE DUWAMISH VALLEY
NEARING THE 20TH ANNIVERSARY OF COMMUNITY ORGANIZING FOR THE DUWAMISH SUPER FUND, WE HOLD TWO TRUTHS
FIRST, WE ARE SUPPORTIVE OF THE MARITIME CLIMATE AIR ACTION PLAN AND ACCELERATED TARGETS
YET TWO, WE STILL FEEL THE PORT ACTIVITIES REMAIN DISINGENUOUS, DISINGENUOUS, AND ONE STATING THAT IT HAS LIMITED CONTROL OVER THE MAJORITY OF ADMISSIONS FROM SEAPORT ACTIVITIES AS A LEADING ECONOMIC BUSINESS, WHILE TWO PLANNING A TERMINAL EXPANSION AROUND THE EAST WATERWAY, WHERE EPA IS ALSO PROPOSING CLEAN UP GOALS, WHICH ACCEPT HIGHER POLLUTION LEVELS DANGEROUS TO HUMAN HEALTH IN OUR ENVIRONMENT
WE BELIEVE THE PORT NEEDS TO EXERCISE ITS POWER, TAKE RESPONSIBILITY FOR ELIMINATING HAZARDOUS POLLUTION TO PRIORITIZE COMMUNITY HEALTH
THE COMMUNITY THAT I LOVE OVER PROFIT AND THE COMPETITIVE NATURE OF MOVING GOODS
A TIMELINE MEASURE IN DECADES IGNORES THE REALITY OF TODAY AND SHOULD NOT BE ACCEPTABLE TO ANY OF US IN THIS WAY
WE STRONGLY URGE THE COMMISSION TO SET AND STATE INTERIM TARGETS TO REACH ZERO MISSIONS WERE POSSIBLE BEFORE 2035
LIST THIS IN THE MCAP AS WELL AS THE RESOLUTION LEAD WITH THE ENVIRONMENTAL JUSTICE PRINCIPLES AS DEFINED IN THE DUWAMISH VALLEY COMMUNITY BENEFITS AGREEMENT AND COMMIT TO AN EAST WATERWAY CLEANUP THAT IS CONSISTENT WITH THE LOWERWAY 2014 RECORD UP DECISION
THANK YOU, ADRIAN
CONGRATULATIONS FOR FITTING ALL THOSE POINTS IN EXACTLY IN YOUR TWO MINUTE ALLOCATION
THAT WAS REMARKABLE
I HOPE YOU WILL BE ATTENDING THE NOVEMBER 10 MEETING THAT WE HAVE THE EPA HOSTING WITH REGARDS TO AT LEAST ONE OF YOUR POINTS ABOUT THE EAST WATERWAY
THANK YOU
MOVING ON TO OUR NEXT SPEAKER, PLEASE
THANK YOU, MR COMMISSION PRESIDENT
WE'LL GO BACK AND CALL FOR STACEY OAKS
STACY, IF YOU'RE ON THE LINE, STAR SIX TO UNMUTE FOR THE TELEPHONE
YES
HI
MY NAME IS STACEY OAKS
AND LIKE OTHERS SPEAKING TODAY, I WANT TO ADDRESS THE NEW CLIMATE GOALS FOR THE PORT OF SEATTLE
LET ME FIRST SAY THAT I HOPE THE WISHES OF THE DUWAMISH RIVER CLEAN UP COALITION ARE RESPECTED AND PRIORITIZED
I WISH TO SAY THANK YOU FOR TAKING THE INITIATIVE TO STRENGTHEN YOUR TARGET
AND I'M HERE TO DEMAND THAT YOU DO MORE
WE KNOW THAT THE MAJORITY OF EMISSIONS COME FROM SCOPE THREE AKA SHIPS AND AIRPLANES
YET THERE ARE NO DETAILED OR CONCRETE PLANS ON HOW THE PORT WILL REDUCE THESE, EVEN AS OVERALL PORT EMISSIONS CONTINUE TO RISE
IN CONTRAST, THERE ARE PLANS IN MOTION AROUND AN EXPANDED OR ADDITIONAL AIRPORT
THERE ARE PLANS FOR AN ADDITIONAL CRUISE TERMINAL THAT A PANDEMIC PUT ON PAUSE, BUT THIS COMMISSION HAS SO FAR REFUSED TO PUT TO REST FOR GOOD
HOW DO WE HAVE CAPACITY FOR THESE PLANS? BUT NOT FOR PLANS THAT PROVIDE HEALTHIER CONDITIONS FOR NEAR AIRPORT COMMUNITIES, NOT FOR PLANS THAT ADDRESS FOSSIL FUEL USE AND A PLANET THAT WILL BE TOO HOT AND TOO HARSH FOR OUR CHILDREN AND GRANDCHILDREN TO SURVIVE? COMMISSIONER NARROWS FELLEMAN EARLIER THIS YEAR, SAID THERE IS AN INSATIABLE DEMAND FOR CRUISE
WHY DOES THE DEMAND FOR CHEAP, DESTRUCTIVE TOURISM OUTWEIGH THE DEMAND OF NEWPORT COMMUNITIES TO BREATHE AIR? THAT DOESN'T GIVE THEM CANCER, TO HAVE FIVE MINUTES APIECE FROM THE THUNDER OF JETS THAT BRING STRESS, HIGH BLOOD PRESSURE AND HEART DISEASE
WHY DOES THE DEMAND FOR CHEAP DESTRUCTIVE TRAVEL OUTWEIGH THE DEMAND THAT MY GRANDDAUGHTER SIMPLY SURVIVE? WHY ARE THE DEMANDS OF SCIENTISTS, CLIMATE ACTIVISTS, DOCTORS, YOUTH AND PEOPLE OF FAITH DISMISSED TO MAKE A FEW BUCKS TODAY AT THE EXPENSE OF OUR FUTURE? WE NEED REAL PLANS WITH BENCHMARKS THAT ARE BASED ON THE CRISIS WE FACE, NOT WHAT POLLUTERS ARE WILLING TO AGREE WITH
ARE YOU FINISHED? WE MIGHT HAVE LOST HER CONNECTIVITY
I THINK IT'S IN THE WATER TODAY
IF SHE COMES BACK, WE LET HER FINISH
SHE'S GOT ABOUT AT LEAST 15 SECONDS LEFT
YES
I'M ACTUALLY HAVING A HARD TIME RESETTING MY CLOCK AS WELL
IT'S INTERESTING TODAY
YES
OUR NEXT SPEAKER IS PEGGY PRINCE
PEGGY, IF YOU'RE ON THE TELEPHONE, THERE YOU GO
GOOD AFTERNOON
I'M PEGGY PRINCE
A WEEK AGO, I LISTENED INTO YOUR ZERO EMISSIONS CRUISE MEETING WHEN COMMISSIONER CHO STAFF DISCUSSED WORTHY BUT CURRENTLY UNAVAILABLE POSSIBILITY
CRUISE SHIPS USING NOT YET DEVELOPED RENEWABLE MARINE FUELS ARE CRUISING AND NOT YET BUILT WIND OR BATTERY POWERED VESSELS
NEVERTHELESS, YOU TALKED ABOUT MOTIVATING CRUISE COMPANIES TOWARDS ZERO EMISSIONS WITH CARROTS AND STICKS
PLEASE DO CONTINUE THIS DISCUSSION
SEATTLE AND THE ALASKA PORTS SHOULD GET TOGETHER TO SET DEADLINES AND NORWAY HAS DONE IT
ONLY ZERO EMISSIONS VESSELS WHEN DEVELOPED, WILL BE ALLOWED IN ITS WORLD HERITAGE FJORDS STARTING IN 1 JANUARY 2026, AND ONLY ZERO EMISSIONS VESSELS WILL BE ALLOWED IN ANY OF ITS FJORDS STARTING IN 2030
BURNING FOSSIL FUEL IS JUST ONE MAJOR WAY THAT THE SEA MONSTER CRUISE SHIPS DAMAGE THE OCEANS, THE AIR, AND THE PORT WHERE THEY CALL ADD TO THAT THE WASTE, THE HUNDREDS OF THOUSANDS OF PASSENGER FLIGHTS, THE PROTECTIVE HALL COATING THAT POISONS MARINE LIFE
SWITCHING TO ZERO EMISSIONS IS A LAUDABLE FIRST STEP TOWARD LIMITING CRUISE SHIPS TOXIC PRESENCE IN OUR WATERS
PLEASE COMPLEMENT YOUR ZERO EMISSIONS GOALS BY OFFICIALLY CANCELING THE PROPOSED THIRD CRUISE TERMINAL, T 46 ENTIRELY RATHER THAN LEAVING IT ON INDEFINITE POSTPONEMENT
THANK YOU VERY MUCH
THANK YOU, MS PRINCE
IS THERE A NEXT SPEAKER, PLEASE? YES
OUR NEXT SPEAKER IS NEIL ANDERSON
HI
SO I'VE BEEN READING ABOUT THE FIRST DECISION TO REDUCE EMISSIONS BY USING RENEWABLE NATURAL GAS, WHICH IS ALSO KNOWN AS RNG FOR SPACE HEATING AT THE AIRPORT
AND THAT SOUNDS VERY ENCOURAGING BECAUSE RNG WOULD COME FROM LANDFILL GAS, SO IT'S NOT ADDING NEW CARBON TO THE SYSTEM LIKE BURNING FOSSIL GAS DOES
THE PROBLEM IS THAT IF YOU LOOK AT THE OVERALL MARKET FOR NATURAL GAS, THERE'S JUST NOT ENOUGH RNG AVAILABLE TO COME ANYWHERE CLOSE TO REPLACING WHAT WE CURRENTLY USE
IN 2018, THE LEGISLATURE COMMISSIONED A STUDY TO EVALUATE THIS, AND IT SHOWED THAT AT MOST IT COULD REPLACE THREE TO 5% OF OUR TOTAL GAS CONSUMPTION
NOW, AS ONE OF THE EARLY ADOPTERS AND AGENCY WITH A LOT OF PURCHASING POWER, THE PORT CAN FULLY CONVERT TO RNG
BUT GIVEN THE VERY LIMITED SUPPLY AS THE REST OF THE STATE DECARBONIZES, THAT OPTION WON'T BE AVAILABLE AND EVERYONE ELSE IS GOING TO BE SWITCHING TO ELECTRIC HEAT PUMPS
AS THIS HAPPENS, THE AIRPORT WILL BE ONE OF THE ONLY FACILITIES LEFT BURNING GAS, AND THIS DECISION IS GOING TO LOOK INCREASINGLY SHORT SIGHTED AND ARCHAIC
I WAS JUST AT THE GRAND OPENING OF THE CLIMATE PLEDGE ARENA LAST WEEK AND IT WAS AN INCREDIBLE EVENT
THE GOVERNOR, THE MAYOR, AND THE CEO OF AMAZON WERE ALL THERE CONGRATULATING THEM FOR CREATING A TRUE ZERO MISSIONS FACILITY
BUT YOU CAN BET THAT NONE OF THEM WILL BE SHOWING UP FOR THE RIBBON CUTTING
WHEN YOU FLIP THE SWITCH AND START BURNING RNG, THEY ALL UNDERSTAND THAT RNG IS A DEAD END ON THE WAY TO DECARBONISATION
AND LARGE RNG PROJECTS LIKE THIS ONE ARE ULTIMATELY GOING TO BE AN EMBARRASSMENT THAT THEY WON'T WANT TO BE ASSOCIATED WITH
I UNDERSTAND THE TEMPTATION TO SWITCH TO RNG
IT'S A QUICK WAY TO GET EMISSIONS DOWN AND MEET YOUR IMMEDIATE TARGETS BELOW
AND I FEEL LIKE GAS ISN'T A SUSTAINABLE SOLUTION THAT WE CAN BASE OUR LONG TERM ENERGY SUPPLY ON AS EVERYONE ELSE SWITCHES TO RENEWABLE SOURCE OF ELECTRICITY FOR HEATING
THE PIPELINE LEADING INTO THE AIRPORT WILL BECOME A STRANDED ASSET AND A CONSTANT REMINDER THAT WE WENT WITH THE EXPEDIENT SOLUTION, NOT THE RIGHT ONE
THANK YOU
THANK YOU FOR THOSE INSIGHTFUL COMMENTS
NEIL, OUR NEXT SPEAKER, PLEASE
THAT'S OUR NEXT SPEAKER IS MR JOHN BURNEL
JOHN, IF YOU'RE ON THE TELEPHONE AT STAR SIX TO UNMUTE, I'M RIGHT HERE
WE CAN HEAR YOU
OKAY
THIS IS JOHN BURNELL
I'M A RESIDENT IN SEATTLE AND A VOLUNTEER WITH THE AVIATION TEAM OF 350 SEATTLE
THANK YOU FOR SCOPE ONE AND SCOPE TWO REDUCTION GOALS
SCOPE THREE, OF COURSE
MORE COMPLICATED
I WOULD URGE YOU, COMMISSIONER CHO, BITE THE BULLET AND INITIATE A PUBLIC CAMPAIGN FOR THE FLYING PUBLIC, INCLUDING BUSINESS CUSTOMERS, TO DRASTICALLY REDUCE THEIR FLYING
I BELIEVE THIS WOULD BE CONSISTENT WITH YOUR MISSION TO PROMOTE THE COMMON GOOD
IT WOULD ALSO HELP IN EFFORTS TO REALISTICALLY REDUCE SCOPE THREE EMISSIONS AND REDUCE THE NEED FOR FURTHER AIRPORT EXPANSION
AND OF COURSE, IF YOU SERIOUSLY QUESTION WHETHER YOUR MISSION COULD ENCOMPASS SUCH A CAMPAIGN, I WOULD REQUEST THAT YOU ADVOCATE AN APPROPRIATE BROADENING OF THE ENABLING LEGISLATION FOR THE PORT
THANK YOU
THANK YOU, MR BERNAL
OUR NEXT SPEAKER IS BERNARDINE LUND
BERNARDINE STAR SIX ON THE PHONE TO UNMUTE, AND WE'LL COME BACK AND CALL FOR BERNADINE MOVING TO DAVID GOBLE
SORRY
YEAH, I WASN'T FULLY PREPARED
I THOUGHT IT WAS MUCH LATER THAN THAT
OKAY
YEAH
MOVING PRETTY FAST TODAY, DAVID
THANK YOU
YEAH, I THOUGHT I WAS 17, SO
HELLO, COMMISSIONERS
LONG TIME NO SEE, MY NAME IS DAVID GOLD
I'M THE PRESIDENT OF THE 501 C THREE VASHON ISLAND
FIRST, GUYS, THAT'S SO MUCH TO SAY
SO LITTLE TIME
I LOOK AT MY COMMENTS TODAY TO THE SAMP AND THE NEW GAO GOVERNMENT ACCOUNTABILITY OFFICE REPORT, WHICH SPECIFICALLY CALLS OUT THE PBN IMPLEMENTATION OF VASHON ISLAND RESIDENTS WERE VERY ACTIVE DURING THE SAM SCOPING PHASE, AND THE PORT'S COMPLAINT DATA SHOWS THAT GENERATES NINE TIMES AS MANY COMPLAINTS FROM THREE TIMES AS MANY HOUSEHOLDS AS THE NEXT HIGHEST ZIP CODE, WHICH IS IN SPITE OF THE FACT THAT NINE 8198 HAS THREE TIMES AS MANY PEOPLE
THIS MEANS THE VAST RESIDENTS ARE, ON AVERAGE, AN ORDER OF MAGNITUDE MORE ANNOYED AND UPSET THAN ANY OTHER COMMUNITY, OR AT LEAST IN A ZIP CODE
THAT'S WHAT YOU GET WHEN YOU CONCENTRATE AND LOWER HUNDREDS OF FLIGHTS A DAY OVER A RURAL ISLAND THAT PEOPLE MOVE TO SPECIFICALLY BECAUSE OF ITS BUCOLIC, PEACEFUL AND SERENE NATURE
IT SHOULD GO WITHOUT SAYING THAT THE EA AND EIS AS PART OF THE SAM MUST DO A FULL ADT MODELING OF THE REAL FLIGHT TRACK DATA TO DETERMINE THE DNL CONTOURS OF THE NEW NEXT GEN PROCEDURES AS IMPLEMENTED, NOT ORIGINALLY DESIGNED JUST AS IMPLEMENTED IN REAL LIFE
IF ANYTHING LESS THAN THIS FULL ANALYSIS IS DONE, BASH ON FAIR SKIES
ASK THE COMMISSION TO NOT ACCEPT THE EA AND EIS UNTIL A FULL ANALYSIS IS PERFORMED ON THE TOPIC OF THE SAMP
I'VE BEEN REREADING ALL THE SCOPING COMMENTS IN MY SPARE TIME AND CAME ACROSS AN INTERESTING ONE BY ALASKA AIRLINES SUBMITTED ON SEPTEMBER 27, 2018 BY SHANE JONES
THEY'RE VICE PRESIDENT OF AIRPORT REAL ESTATE AND DEVELOPMENT ON PAGE FIVE
THEY SAY, ACCORDING TO THIS QUOTE, ACCORDING TO THE SAM, WITHOUT LINKAGE TO IN COORDINATION WITH THE FAA UPCOMING REDESIGN OF THE REGIONS AEROSPACE
I DON'T KNOW IF YOU GUYS KNOW ANYTHING ABOUT THIS IMPENDING REDESIGN OF THE REGION'S AEROSPACE
IF NOT, YOU MAY WANT TO TRY AND FIND OUT TO PREVENT A REPEAT OF THE BURIEN 270 DEGREE OF AUTO TURN TROUBLES THAT HAPPENED THAT YOU'RE ALL VERY AWARE OF
I'LL SUBMIT A COPY OF THOSE COMMENTS TO THE CLERK TO HELP WITH THAT, AND I'VE RUN OUT TO HIM TALKING ABOUT THE GAO REPORT
I'VE EMAILED YOU ALL A LINK TO THE GAO REPORT SO THAT'LL HAVE TO DO
ALL RIGHT
THANKS
BYE
AND THEN, MR COMMISSION PRESIDENT, YOU'RE MUTED
DAVID, YOU'RE RIGHT
WE DID MISS YOU
WE'D LOVE TO GET AN UPDATE ON WHAT YOUR NOISE MONITORING WORK WITH
BEING THE FIRST RECIPIENT OF THE MOBILE MONITORING SYSTEMS WERE LIKE, NOT AT THIS TIME, BUT I DO KNOW THAT YOU WERE VERY DEDICATED IN SEEING THAT THAT WOULD BE DONE
WELL, SO JUST LOOKING FORWARD TO AN UPDATE
MOVING ON
THANK YOU
TO OUR NEXT SPEAKER, PLEASE
YES
THANK YOU
MR COMMISSION PRESIDENT
WE'LL GO BACK AND CALL FOR BERNARDINE LUND
BERNARDINE, IF YOU'RE ON THE TELEPHONE, STAR SIX TO UNMUTE AND WE'LL MOVE TO ELIZABETH BURTON
HELLO? OH, I CAN HEAR YOU, BERNARDINE
YES
OKAY
I ONLY PUNCHED IT LIKE, TEN TIMES, BUT OKAY, I TURNED IN MY COMMENT SHEET ALREADY, SO I THINK I'M GOING TO SKIP THE FIRST PART BECAUSE OTHER SPEAKERS ALREADY COVERED IT SO WELL
AND THAT WAS ABOUT THE NET ZERO AND THE CARBON NEUTRAL NEGATIVE STRATEGY THAT YOU WANT TO USE TO DECREASE THE EMISSIONS
BUT TO ME, IT SEEMS UNCONSCIONABLE THAT YOU STILL WANT TO EXPAND THE AIRPORT BY PLANNING TO GREATLY INCREASE THE NUMBER OF FLIGHTS MEANS YOU ALSO NEED TO GREATLY DECREASE AIRCRAFT EMISSIONS USING STRATEGIES THAT YOU HOPE WILL WORK NOT TO REDUCE THE EMISSIONS MEANS YOU WILL NOT MEET THE SCOPE THREE GOALS, AND ONE OF THEM WAS TO MAKE FLYING EQUITABLE FOR BOTH FLIERS AND NON FLYERS
THE PROPOSAL ALSO STILL INCLUDES USING BIOFUELS
YOU MUST BE AWARE OF THE INCREASING NUMBER OF CONCERNS ABOUT USING BIOFUELS AND THE NEGATIVE IMPACT THAT WILL HAVE ON POORER COUNTRIES
IT SEEMS UNWISE TO RELY ON A STRATEGY THAT HAS YET TO BE PROVEN AT SCALE
NOT EXPANDING FLIGHTS IS STILL THE BEST KNOWN WAY TO MEET THEIR MISSION GOALS
NOW, I KNOW THAT YOU'VE SAID THAT IT DOESN'T MEET WHAT YOUR CHARTER SAYS
YOU HAVE TO DO
IT'S JUST THAT THE CHARTER WAS WRITTEN OVER 100 YEARS AGO
SO MANY THINGS HAVE CHANGED IN THE LAST 100 YEARS
YOU NEED TO ADVOCATE OR ASK OTHER PEOPLE TO HELP YOU ADVOCATE TO HAVE THAT CHARTER CHANGED
TO SAY THAT YOU HAVE TO TAKE CARE OF THE PUBLIC AS WELL AS PEOPLE ON THE PLANE, JUST LIKE THE FAA IS BEING ASKED TO, OR THEY'RE PLANNING ON ASKING THE FAA TO INCORPORATE WELFARE OF THE PUBLIC AS WELL AS WELFARE OF THE FLYERS
THAT'S ALL I HAVE TO SAY
THANK YOU, BERNARDINE
AS ALWAYS, OUR NEXT SPEAKER, CLERK HART
YES
THANK YOU
OUR NEXT SPEAKER IS ELIZABETH BURTON
ELIZABETH, IF YOU'RE ON THE TELEPHONE, START SIX TO UNMUTE
OKAY
WE'RE GOING TO GO AHEAD AND MOVE FORWARD
WE'LL CALL ELIZABETH HERE IN A MOMENT
I'M MOVING TO LAURA LOWE
LAURA DID CHECK IN EARLIER TODAY
LAURA, IF YOU'RE ON THE TELEPHONE, STAR SIX TO UNMUTE AND MOVING BACK TO ELIZABETH BURTON, WE'LL CALL ONE MORE TIME FOR ELIZABETH BURTON, AND THEN WE'LL GO AHEAD AND MOVE TO ANDREW SHIFTNER
THANK YOU
MY APOLOGIES
MY CAMERA IS NOT WORKING
HELLO, EVERYBODY
MY NAME IS ANDREW SCHIFFER, AND I AM A RESIDENT OF GEORGETOWN AND A MEMBER OF THE GEORGETOWN COMMUNITY COUNCIL BOARD OF DIRECTORS, AS WELL AS SUPPORT COMMUNITY ACTION TEAM
I WOULD LIKE TO TALK ABOUT GEORGETOWN'S CONCERNS ABOUT THE EASTWATER WAY PROPOSED CLEAN UP PLAN, WHERE THE PORT OF SEATTLE IS A RESPONSIBLE PARTY AND MUST PAY FOR PART OF THE CLEAN UP
AS A COMMUNITY MEMBER, I FEEL THAT THE PORT HAS FAILED OUR COMMUNITY ON THIS MATTER
THE EAST WATERWAY CLEAN UP GOALS THAT THE EPA IS PROPOSING FAILS TO PROTECT BOTH HUMAN HEALTH AND THE ENVIRONMENT
THE PROPOSED CLEAN UP PLAN WOULD LEAD THE EAST WATERWAY AND CONSEQUENTLY THE WHOLE DUWAMISH RIVER BECAUSE IT'S ONE CONNECTED RIVER IN SUCH A STATE OF POLLUTION THAT THE RIVER WILL NEVER BE FISHABLE AGAIN, LET ALONE SWIMMABLE OR ENVIRONMENTALLY RESTORED
THIS FAILS OUR COMMUNITY ON SO MANY LEVELS, INCLUDING MANY OF OUR LOW INCOME RESIDENTS WHO DEPEND ON THE RIVER FOR SUSTENANCE
IT ALSO FAILS TO RESPECT OUR ENVIRONMENT AND UNDERMINES ALL GOALS FOR RECOVERY OF THE PUGET SOUND, INCLUDING FOR SALMON AND ORCAS
IN ADDITION, THE PROPOSED EAST WATERWAY CLEAN UP PLAN FAILS TO MEET BOTH FEDERAL SUPERFUND AND WASHINGTON STATE LAWS
IT UNDERMINES THE COMMUNITY BENEFITS COMMITMENT YOU MADE WITH OUR COMMUNITY IN 2019, AND IT FAILS IN TERMS OF PROMISE, TRANSPARENCY AND COMMUNITY CONSULTATION COMMITMENTS AS WELL AS FAILS TO FOLLOW ECOLOGY, SEDIMENT MANAGEMENT STANDARDS
THE PORT AND THE EPA MUST NOT PRIORITIZE COST OVER PUBLIC HEALTH, AND YOU MUST CONSULT THE COMMUNITY THROUGHOUT THE PROCESS WHICH THE PROPOSED PLAN HAS FAILED TO DO
I REALLY DO APPRECIATE THE LETTER THAT THE EPA DATED SEPTEMBER 22, 2021, THAT THE PORT SENT ALONG WITH THE CITY OF SEATTLE IN KING COUNTY REGARDING THE LOWER DUWAMISH WATERWAY IN THE EAST WATERWAY CLEAN UP PLAN, AND WE ARE ASKING YOU TO COMMIT TO THAT LETTER AND MORE
THE PROPOSED EAST WATERWAY CLEAN UP GOALS ARE NOT CONSISTENT WITH THE CLEAN UP OF THE ADJACENT LOWER DUWAMISH WATERWAY SUPERFUND SITE, EVEN THOUGH THE DUWAMISH RIVER, AS I SAID, IS ONE RIVER THAT'S TIDALLY INFLUENCED, WE ARE ASKING THAT YOU COMMIT TO AN EASTWATER WAY CLEANUP THAT IS CONSISTENT WITH A LOWER DUWAMISH WATERWAY 2014 RECORD OF DECISION AND THE EXTENSIVE COMMUNITY WORK AND COLLABORATION THAT WAS DONE TO CREATE THAT PLAN THAT THE PORT DID AGREE TO
THANK YOU VERY MUCH FOR THIS TIME TO SPEAK
YOU'RE IN MUTED MR COMMISSION PRESIDENT TRYING TO BE POLITE THERE
THANK YOU, ANDREW, AND I HOPE YOU CAN ATTEND THE MEETING ON NOVEMBER 10, WHERE THESE MATTERS WILL BE DISCUSSED
CLERK HART, OUR NEXT SPEAKER
IF WE HAVE ANY LEFT, WE DO
WE HAD A COUPLE OF LATE SIGN UPS
OUR NEXT SPEAKER AND I WILL GO BACK FOR ELIZABETH BURTON AND LAURA LOWE
WE WILL CALL ERIC ROSS NEXT, HOWEVER, ERIC, IF YOU'RE ON THE TELEPHONE, STAR SIX TO UNMUTE
THANK YOU
CAN YOU HEAR ME? OKAY
YOU CAN
GREAT
MY NAME IS ERIC CROSS
I'M A RESIDENT AND COMMUNITY ADVOCATE DEDICATED TO CLEAN AIR, HABITABLE PLANET AND PUBLIC HEALTH, AND MY EXPERIENCE IS THAT YOU PORT COMMISSIONERS SHARE THESE ASPIRATIONS
I APPRECIATE THAT
FIRSTLY, I WANT TO ENTHUSIASTICALLY SUPPORT THE ADOPTION OF THE ACCELERATED CLIENT COMMITMENTS CONTAINED IN THE PORT'S MARITIME CLEAN AIR ACTION PLAN
I ALSO WANT TO THANK THE HARD WORK OF THE PORT STAFF COLLECTING COMMUNITY FEEDBACK AND ADJUSTING THE END CAP TO REFLECT THE FEEDBACK OF RESIDENTS AND COMMUNITY GROUPS LIKE TWO AMBUSH RIVER CLEANUP COALITION AND 350 SEATTLE
WE KNOW THAT SEATTLE HAS TWO TIMES THE NUMBER OF EARLY DEATHS COMPARED TO THE GLOBAL AVERAGE AS A RESULT OF PORT EMISSIONS
SO PORT EMISSIONS ARE AN ISSUE OF LIFE AND DEATH
I WANT TO ENCOURAGE THE PORT TO ADVANCE POLICIES, MODIFY LEASE AGREEMENTS, AND ADVOCATE FOR REGULATIONS THAT ELIMINATE THE FULL EXTENT OF THE PORT SCOPE THREE EMISSIONS BY 2030
ADDITIONALLY, WE ENCOURAGE THE PORT TO ADOPT AN EXPANSION OF SCOPE THREE MISSIONS THAT THE PORT QUANTIFIES TO INCLUDE THE FULL JOURNEY OF OCEAN GOING VESSELS THAT CALL PORT OF SEATTLE
AS A COMMUNITY MEMBER, I'M CONCERNED ABOUT THE PORT MAINTAINING COMPETITIVENESS, AS YOU MAY BE AWARE, LAST WEEK, SOME OF THE WORLD'S LARGEST RETAILERS, INCLUDING IKEA, AMAZON, COMMITTED TO SHIPPING THEIR GOODS USING ZERO EMISSION VESSELS AND NOT USING FALSE SOLUTIONS LIKE BIOFUELS OR LNG AND SOME OF THE LARGEST CONTAINER CAREG
LLOYD AND MARIS, RESPONDED THAT THEY ARE READY TO MEET THAT CHALLENGE
I HOPE THAT OUR PORT IS ALSO READY TO MEET THAT CHALLENGE
ADOPTING GREEN HYDROGEN AND ELECTRICIFICATION OF ALL OCEANGOING VESSELS BY 2030, 2030 IS THIS DECADE
THE TCC TELLS US WE NEED URGENT ACTION TO AVERT CLIMATE BREAKDOWN
WE NEED DRASTIC REDUCTIONS, UNPRECEDENTED ELIMINATION OF EMISSIONS, AND WE NEED BOLD LEADERSHIP
AND I KNOW THAT THE CREATIVITY AND INGENUITY OF OUR COMMUNITY AND THE LEADERSHIP OF THE PORT COMMISSION CAN DO SO
I HOPE YOU DO THAT WORK GOING FORWARD
THANK YOU
WELL, THANK YOU VERY MUCH, ERIC
AND WE'RE VERY KEENLY AWARE OF THE BCOS, AS WE CALL THEM, BENEFICIAL CARGO OWNERS WANTING TO LOWER THEIR OWN GREENHOUSE GAS FOOTPRINT
THAT'S WHY WE INVEST IN OUR SHORE POWER AND OTHER THINGS TO HELP THEM ACHIEVE THEIR OWN GOALS, EVEN THOUGH WE DON'T HAVE DIRECT CONTROL OVER THEM
AND I DO QUESTION WHETHER THERE'S ANY STUDY THAT EVER SHOWS THE PORT SPECIFIC EMISSIONS ARE RESULTING IN A DISPROPORTIONATE DEATH
PEOPLE WHO LIVE AROUND PORTS ALSO ARE SUBJECT TO OTHER IMPACTS, SO WE HAVE TO BE COGNIZANT OF OUR CUMULATIVE IMPACTS, BUT I DON'T THINK ANYBODY'S BEEN ABLE TO DISTINGUISH THEM FROM OTHERS MOVING ALONG
CLERK HART, PLEASE
YES, WE'LL GO BACK FOR ELIZABETH BURTON
ELIZABETH, IF YOU'RE ON THE LINE, PLEASE LET US KNOW
AND THEN WE'LL MOVE TO CALL LAURA LOWE ONE MORE TIME
LAURA, IF YOU'RE ON THE TELEPHONE, STAR SIX TO UNMUTE
OKAY
NOT HEARING FROM ELIZABETH OR LAURA
MR COMMISSION PRESIDENT, THAT CONCLUDES THE SIGN UP THAT I HAVE TODAY, RIGHT
DO YOU HAVE ANY WRITTEN COMMENTS YOU WOULD LIKE TO SUMMARIZE? WOULD YOU LIKE TO CALL FOR ANYONE ELSE ON THE LINE WHO MAY BE WANTING TO SPEAK, WHO HASN'T SIGNED UP? WE HAVE ANY LAST MINUTE SIGN UPS
IF SO, PLEASE RAISE YOUR HAND
SPELL YOUR NAME FOR THE RECORD
YES, WE'LL GO AHEAD AND SUMMARIZE FOR THE WRITTEN AND WE HAVE RECEIVED TEN WRITTEN COMMENTS FOR TODAY'S MEETING
THESE HAVE ALL BEEN EMAILED TO YOU IN ADVANCE OF THE MEETING AND WILL BECOME A PART OF THE PUBLIC MEETING RECORD
ANY CORRESPONDENCE RECEIVED DURING THE MEETING WILL ALSO BE DISTRIBUTED TO YOU POST MEETING AND WILL BE INCLUDED AS PART OF THE MEETING RECORD
I DO HAVE A HIGH LEVEL SUMMARY TODAY
IN THE INTEREST OF TIME, WE'VE HAD A LOT OF SIGN UP TODAY, LAURA FRANCE AND SEPARATELY, ROBIN BRIGGS, RIGHT
REGARDING AGENDA ITEM TEN C THE 350 SEATTLE MARITIME SOLUTIONS TEAM RIGHTS REGARDING AGENDA ITEMS TEN, C, D
AND E
ROSEMARY MOORE, CHARLOTTE ANNE CROKER AND RICHARD LEEDS
ALL RIGHT
REGARDING AGENDA ITEMS TEN C AND TEN D
JORDAN VANVOS, JOHN BERNAL, BERNARDIN LUND AND LAURA LOWE ALL SUBMITTED WRITTEN COMMENTS IN SUPPORT OF THEIR SPOKEN COMMENTS TODAY, ALTHOUGH I WILL NOTE THAT WE DID NOT HAVE MS LOWE, AND THAT CONCLUDES THE WRITTEN COMMENTS THAT WE'VE RECEIVED TODAY
WELL, THANK YOU VERY MUCH FOR THAT
SO WE'LL MOVE ON NOW TO THE CONSENT AGENDA
ITEMS ON THE CONSENT AGENDA ARE CONSIDERED ROUTINE AND WILL BE ADOPTED IN ONE MOTION
ITEMS REMOVED FROM THE CONSENT AGENDA WILL BE CONSIDERED SEPARATELY IMMEDIATELY AFTER ADOPTION OF THE REMAINING CONSENT AGENDA ITEMS WE'VE HEARD NO ITEMS TO BE PULLED TODAY, BUT AT THIS TIME, CHAIR, WILL YOU PLEASE ENTERTAIN A MOTION CLARK TO APPROVE? I'M SORRY, SINCE WE'VE HEARD NO CHANGES TO BE PULLED TODAY
AT THIS TIME, THE CHAIR WILL ENTERTAIN A MOTION TO APPROVE THE CONSENT AGENDA COVERING ITEMS EIGHT A THROUGH EIGHT G
OKAY
SO THANK YOU
IT'S BEEN MOVED
AND SECONDED COMMISSIONERS, PLEASE SAY YES OR NO WHEN YOUR NAME IS CALLED, BEGINNING WITH COMMISSIONER BOWMAN
AYE
THANK YOU, COMMISSIONER CALKINS
AYE
THANK YOU, COMMISSIONER CHO
AYE
THANK YOU, COMMISSIONER STEINBRUECK
YES
THANK YOU, COMMISSIONER FELLEMAN
HI
THANK YOU
THERE ARE FIVE YESSES AND ZERO NOS FOR THIS ITEM
SO THE AGENDA PASSES
SO MOVING ON IN THE AGENDA, WE HAVE FIVE NEW BUSINESS ITEMS TODAY
CLERK HART, WOULD YOU PLEASE READ THE FIRST ITEM INTO THE RECORD? AND WE'LL THEN HEAR FROM EXECUTIVE METRUCK TO INTRODUCE THE ITEM
YES
AND OUR FIRST ITEM UNDERNEATH BUSINESS IS AGENDA ITEM TEN A
THIS IS AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO ISSUE A REQUEST FOR PROPOSAL TO SELECT A VENDOR FOR DUTY FREE OPERATIONS AND TO EXECUTE A CONCESSIONS AGREEMENT WITH THE SELECTED DUTY FREE OPERATOR AT SEATTLE TACOMA INTERNATIONAL AIRPORT
AND I'M GOING TO GO AHEAD AND WE WILL TAKE TEN B SEPARATELY WHEN WE GET THERE
SO LET'S JUST GO AHEAD AND GO HERE FROM THE EXECUTIVE DIRECTOR NOW
THANK YOU
CLERK HART, COMMISSIONERS, EARLIER THIS YEAR, YOU APPROVED A TEMPORARY LEASE AGREEMENT FOR OUR CURRENT DUTY FREE VENDOR AND LEARNED ABOUT PLANS FOR FUTURE EXPANSION OF OUR DUTY FREE OPERATIONS
WITH THE ADDITION OF INTERNATIONAL GATES AND CONCOURSE A AND THE PLANNED RENOVATION OF THE SOUTH
SATELLITE MODIFICATION AND EXPANSIONS TO THE DUTYFREE LOCATIONS, ALONG WITH THE SELECTION OF A NEW VENDOR, ARE ESSENTIAL IN LEVERAGING THE SOURCE OF NON AERONAUTICAL REVENUE
AS ANTICIPATED BY FOURTH QUARTER 2024, THE DUTY FREE SPACE AT THE AIRPORT WILL INCREASE FROM 6700 SQFT TO OVER 15,000 SQFT
THE PROPOSED TIMELINE FOR THE SELECTION OF DUTY FREE VENDOR LINES LINES UP WITH THE CONCOURSE A DUTY FREE PROJECT
AS SUCH, ITEMS TEN A AND TEN B WILL BE PRESENTED TOGETHER, AND I THINK THAT'S WHAT CLERK HART WAS LOOKING AT
HOWEVER, THERE WILL BE TWO SEPARATE AUTHORIZATIONS
ITEM TEN A IS SOLELY FOR THE REQUEST FOR PROPOSALS
TEN B IS FOR DESIGN FUNDING TO COMPLETE THE PROJECT DEFINITION DOCUMENT
AS YOU'LL SEE FROM THE PRESENTATION, THE PROPOSED PROJECT WILL DRAMATICALLY CHANGE A SECTION OF SEA AND IS PART OF A LARGER VISION TO PROVIDE WORLD CLASS AMENITIES AND OPTIMAL LEVEL OF SERVICE
TO INTRODUCE THIS ITEM AND SHARE A LITTLE MORE ABOUT THE VISION IS MANAGING DIRECTOR OF AVIATION LANCE LITTLE AND HE'LL INTRODUCE HIS TEAM ONCE WE GO ON
SO, LANCE, I'LL TURN IT OVER TO YOU
THANK YOU, EXECUTIVE DIRECTOR METRUCK
GOOD AFTERNOON, COMMISSIONERS, COULD WE GET THAT PRESENTATION ON THE SCREEN, PLEASE? OKAY
THANK YOU
SO, COMMISSIONERS, SOME TIME AGO, I OUTLINED THE AIRPORT VISION AND HOW THE VISION THAT WE HAVE FOR THE AIRPORT FITS DIRECTLY INTO THE COMMISSION CENTURY AGENDA
I ALSO MENTIONED THAT AS WE SEEK APPROVAL FOR MAJOR PROJECTS THAT I WOULD ROUTINELY COME BACK TO THE COMMISSION AND BASICALLY KIND OF SHOW HOW THIS PROJECT FITS INTO THAT VISION AND HOW IT SUPPORTS THE CENTURY AGENDA
SO TODAY, AS WE SEEK APPROVAL FOR A MAJOR UNDERTAKING IN DUTY FREE I WOULD LIKE TO START BY SHOWING HOW IT FITS INTO OUR VISION AND HOW IT FITS INTO HELPING US TO ACHIEVE OUR LONG TERM GOALS
NEXT SLIDE, PLEASE
SO COMMISSIONERS AND STEVIE, HAVE HEARD OVER AND OVER AGAIN AS I OUTLINED THE GOALS THAT WE HAVE FOR THE ORGANIZATION TO GET THE AIRPORT TO WHAT WE CONSIDER A LEVEL OF SERVICE OPTIMAL AT ALL ALL THE FACILITIES DURING PEAK
WE'RE ALSO AIMING TO BE EVENTUALLY AT SKYTRACKS FIVE STAR RATED AIRPORT
OUR GOAL IS TO GET TO FOUR STAR BY 2025
THERE'S NO FIVE STAR IN THE US, RIGHT? AND VERY FEW FIVE STAR RATED AIRPORT
SO WE'RE TRYING TO GET TO FOUR STAR BY 2025
ONE OF OUR GOALS ALSO IS TO BE IN TOP 25 ASQ OR AIRPORT SERVICE QUALITY TOP 25 AIRPORTS ANYWHERE AROUND THE WORLD
SO ON THE CHART THAT YOU'RE SEEING THE SIDE THAT YOU'RE SEEING, WE'RE SHOWING JUST SOME OF THE PROJECTS THAT WE HAVE DONE ALREADY WE ARE WORKING ON, AND WE WILL WORK ON THAT WILL HELP US TO ACHIEVE THOSE GOALS
THESE ARE THE ONES WE HAVE HIGHLIGHTED THAT PROVIDES THE KIND OF A WALL FACTOR
THESE ARE THE WHAT WE CALL THE ROLL SPOTS
IT'S KIND OF DESTINATIONS WITHIN THE AIRPORT
PEOPLE VIEWPORT AS JUST A TRANSITION POINT
BUT BECAUSE OF THE AMOUNT OF TIME PEOPLE SPEND IN THE AIRPORT, WE WANT SOME OF THE AREAS TO BE HERE THAT ACTUALLY YOU FEEL LIKE YOU'RE GOING TO A DESTINATION WITHIN THE AIRPORT
THESE ARE THE PLACES THAT PEOPLE ACTUALLY WANT TO HANDLE WHILE THEY'RE IN THE AIRPORT
SO THE PORT SATELLITE, WHICH WAS JUST COMPLETED RECENTLY, WELL, ALMOST COMPLETED
WE HAVE A FEW CONCESSIONS TO PUT IN
THERE IS ONE OF THOSE LOCATIONS
WE HAVE THE INTERNATIONAL ARRIVAL FACILITY, WHICH WILL BE OPENING QUITE SOON
AND THEN WE HAVE THE PORT MAIN TERMINAL PROJECT THAT WE'RE WORKING ON WITH ALASKA AIRLINES, AND WE HAVE THE AMEX LOUNGE THAT WE'RE WORKING ON, AND THEY CONQUER A LOAN WITH DELTA AIRLINES
SO ALL OF THESE SPACES WITHIN THE AIRPORT ARE GOING TO BE KIND OF GIVE YOU THE WALL FACTOR, BUT IT'S NOT JUST ABOUT AESTHETICS ONLY
IT'S ABOUT CUSTOMER SERVICE, IT'S ABOUT EFFICIENCY, AND IT'S ABOUT REVENUE GENERATION
AND I'LL SPEAK A LITTLE BIT MORE ABOUT THE REVENUE GENERATING CAPABILITIES OF SOME OF THESE FUNCTIONS
SO THIS IS WHERE DUE TO FREE FITS IN
AS STEVE MENTIONED, IT'S GOING TO BASICALLY CHANGE AND LOOK AND FEEL OF THAT PARTICULAR AREA OF THE AIRPORT ON CONCOURSE
IT'S GOING TO TOTALLY CHANGE
THE EFFICIENCY OF THAT AREA IS GOING TO TOTALLY CHANGE AS WELL
BUT ALSO VERY IMPORTANT IS THE REVENUE GENERATING CAPABILITY OF THAT LOCATION
IF YOU APPROVE THIS TWO TO THREE REQUEST NEXT SLIDE, PLEASE
THANK YOU
SO COMMISSIONER CHO HAVE SET SOME VERY AMBITIOUS SUSTAINABILITY GOALS FOR US, AND I KNOW SOME OF THE COMMISSIONER CHO NOT HAPPY WITH THE SPEED AT WHICH WE'RE ACHIEVING SOME OF THESE
IT'S NOT FOR LACK OF TRYING OR WE'RE REALLY WORKING HARD, BUT WE KNOW THAT WE WILL ACCOMPLISH THESE GOALS
WE ARE GOING TO GET TO THE GREENHOUSE GAS PRODUCTION GOALS THAT HAS BEEN ESTABLISHED
WE ARE GOING TO GET TO LESS SINGLE OCCUPANCY OR PRIVATE OCCUPANT VEHICLES COMING TO THE AIRPORT, AND WE'RE MAKING EVERY EFFORT TO GET MORE AND MORE PEOPLE TO DO THAT
MORE SHIFT TO HAVE MORE PEOPLE TAKING LIGHT RAIL FOR AN EIGHT, FOR EXAMPLE
SO WE KNOW WE'RE GOING TO MEET THOSE GOALS
WE ALSO ARE AWARE THAT THERE ARE UNINTENDED CONSEQUENCES ASSOCIATED WITH GETTING TO THOSE GOALS
FOR EXAMPLE, WE ANTICIPATE THAT WE'LL HAVE A SIGNIFICANT REDUCTION IN PARKING REVENUES
AS AN EXAMPLE, ONE OF OUR MAJOR SOURCES OF REVENUE ANTICIPATE THAT WE ARE GOING TO HAVE A REDUCTION IN REVENUES GENERATED FROM THE GROUND TRANSLATION OPERATION, AND SO WE CAN'T WAIT UNTIL THAT HAPPENED TO START RESPONDING
WE HAVE TO FIND A WAY TO MAKE UP THOSE REVENUES SO WE CAN CONTINUE INVESTING IN THE AIRPORT AND CONTINUE HAVING THAT CASH THAT WE NEED AS WE DO CASH TO CARE
RIGHT
SO WE'RE GOING TO SEE A DECLINE AS WE MEET CERTAIN GOALS
UNINTENDED CONSEQUENCES
WE HAVE TO START LOOKING AT MAKING IT UP ON OTHER END
WE'RE LOOKING AT NEW AND DIFFERENT WAYS
FOR EXAMPLE, SPONSORSHIP IS ONE THAT WE'RE LOOKING AT
STADIUMS AND ARENAS HAVE FOUND A REALLY GREAT WAY TO SPONSORSHIP
WE HAVE FAR MORE PEOPLE COMING TO THIS AIRPORT THAN MOST STADIUMS OR ARENAS
SO THAT'S ONE OF THE OPTIONS WE'RE LOOKING AT
WE'RE NOT SURE EXACTLY WHAT WILL COME OUT OF THAT
WE'RE ALSO LOOKING AT EXISTING CONCESSIONS BUSINESSES
WE'RE LOOKING AT ADVERTISING, FOR EXAMPLE, HOW CAN WE GENERATE ADDITIONAL REVIEWS FROM ADVERTISING? WE COULD PASS ON THE ENTIRE AIRPORT, MAKE IT LOOK LIKE LAS VEGAS
BUT THAT'S NOT US
THAT'S NOT THE SENSE OF PLACE THAT WE'RE TRYING TO CREATE
WE HAVE CREATED A BALANCE BETWEEN ADVERTISING BETWEEN ART AND WE FIND IT
SO IT MAKES IT A LOT MORE DIFFICULT
RIGHT
BUT AGAIN, WE'RE NOT LAS VEGAS
WE'RE THE PORT OF SIT, WHERE THE PACIFIC NORTHWEST
WE HAVE TO HAVE A SENSE OF PLACE
SO THE ONE AREA THAT WE ARE SURE THAT WE CAN GENERATE THAT REVENUE IS IN THE CONCESSION SPACE
RIGHT
DON WILL EXPLAIN TO YOU BASED ON OUR EMPLOYMENT THAT WE HAVE BASED ON THE EMPLOYMENTS PER REVENUE, THEIR EMPLOYMENT PER SQUARE FOOT THAT WE HAVE INSIDE
WE ARE WOEFULLY UNDERPERFORMING WHEN IT'S COME TO CONCESSION REVENUES
AND FOR US, IF YOU APPROVE THIS PROJECT, WE THINK IT'S A WIN WIN BECAUSE IT MEETS OUR PASSENGER NEEDS
IT CREATES JOBS NOT ONLY AS PART OF THE CONSTRUCTION, BUT ALSO THE ONGOING OPERATION
IT WILL GENERATE A LOT OF SIGNIFICANT REVENUES THAT WE WILL NEED AT THIS AIRPORT
AND IT ALSO GETS US TO MEET OUR LONG TERM GOALS, AND ULTIMATELY THE CENTER GOES OF THE ORGANIZATION
SO I'M GOING TO NOW HAND OVER TO DON WILL GET INTO A LOT MORE DETAIL ON THIS PROJECT AS WELL AS MANDY, WHICH WILL GET INTO THE CONSTRUCTION PART OF THIS PROJECT
SO I'LL HAND OVER TO DON HUNTER
THANK YOU, LANCE
LIKE LANCE MENTION, I WILL BE PRESENTING TODAY ALONG WITH MATTI DEGORIS AND MATT NG FROM MY TEAM
CAN YOU GO TO THE NEXT SLIDE, PLEASE? TODAY, WE'RE GOING TO TALK ABOUT THE AUTHORIZATION FOR THE DUTY FREE RFP
CAN YOU GO TO THE NEXT SLIDE? THANK YOU
SO ONE OF THE THINGS WE WANT TO TALK ABOUT TODAY IS TO REALLY DEVELOP THE STORY AROUND AIRPORT, DINING AND RETAIL AND THIS PROPOSAL
WE WANT TO EXPAND OUR DUTY FREE, MAKING IT A MORE VIABLE BUSINESS MODEL FOR BIDDERS
WE'RE CALLING THIS OUR DUTY FREE MASTER PLAN, AND IT ALIGNS REALLY WITH OUR CENTURY AGENDA GOALS TO BE AN EFFECTIVE PUBLIC AGENCY, BE A NATIONAL MODEL FOR EQUITY, DIVERSITY, INCLUSION AS WE HAVE SOME SMALL BUSINESS KIOSK BUILT INTO THIS PROGRAM AND STRENGTHENING OUR COMPETITIVENESS OF SCA AND A REGIONAL GLOBAL MARKET
AS LANCE MENTIONED, COMPARED TO OUR SISTER AIRPORTS, WE WERE REALLY LACKING IN DUTY FREE AND MISSING THAT OPPORTUNITY FOR REVENUE
NEXT SLIDE, PLEASE
A LITTLE BIT OF BACKGROUND ABOUT THE DUTY FREE PROJECT
I KNOW, COMMISSIONER FELLEMAN, YOU'VE ASKED A COUPLE OF TIMES WHY WAS DUTY FREE NOT INCLUDED IN OUR ADR MASTER PLAN? WELL, IT WAS DUTY FREE CURRENCY EXCHANGE AND VENDING
I HONESTLY DO NOT KNOW THEY WERE EXCLUDED, AND WE ARE PLANNING TO MAKE UP FOR THAT
MOVING FORWARD TO ADDRESS THOSE THREE AREAS OF CONCERN, DUTY FREE IS OUR PRIME OPPORTUNITY
AND THEN VENDING WILL ALSO BE COMING UP NEXT YEAR
AS STATED BY EXECUTIVE DIRECTOR METRUCK, YOU APPROVED A TEMPORARY DUTY FREE CONTRACT SO WE COULD FIND A GOOD SOLUTION TO KEEP OUR CURRENT VENDOR ON TRACK SO WE CAN PROVIDE THAT SERVICE AND GIVE US ENOUGH TIME TO BE ABLE TO PLAN EFFECTIVELY FOR DUTY FREE
OUR DUTY FREE HAS BEEN UNDERPERFORMING AND IT REALLY IS A LACK OF SQUARE FOOTAGE
YOUR MAJOR BRANDS, YOUR FARAGAMOS AND YOUR GUCCI'S AND ALL THESE THINGS THAT PEOPLE WANT TO BUY REQUIRE CERTAIN SQUARE FOOTAGE IN ORDER FOR YOU TO PUT THEIR PRODUCT IN
AND WE WERE JUST GROSSLY UNDERSIZED FOR THE PROJECT
SO I'M SO EXCITED ABOUT THE EXPANDED DUTY FREE AND THE SOUTH SATELLITE RENOVATION BECAUSE IT'S GOING TO GIVE US OPPORTUNITY TO REALLY SHOW OURSELVES AS A LEADER IN THAT AREA AND ALSO WILL GIVE US AN OPPORTUNITY TO REACH THAT FOUR STAR RANKING THAT WE DESIRE
CURRENTLY, OUR DUTY FREE RANKS 13 OUT OF 22 OVERALL OF LARGE HUB AIRPORTS
AND THE OTHER THING IS, WE'RE AROUND MAKING AROUND PRE COVET, ABOUT 18
19 MILLION A YEAR
OUR SISTER AIRPORTS ARE MAKING 50 PLUS A YEAR
AND SO WE'RE REALLY BEHIND THE BALL ON WHAT WE COULD DO HERE
COMPARED TO SOME OF OUR SISTER AIRPORTS, THE DUTY FREE OPERATOR WILL REMAIN IN OPERATION WHILE WE'RE GOING THROUGH JUST DESIGN AND CONSTRUCTION ON CONCOURSE A
AND THEN ONCE WE HAVE THAT PERSON IN PLACE, THEY WILL THEN WORK WITH MANDY AND HER TEAM AND THE DESIGNERS TO DESIGN THE BASE BUILDING AND THE DUTY FREE SPACE
NEXT SLIDE, PLEASE
WHAT WOULD BE IN THE RFP WOULD BE THERE'S A LOCATION ON CONCOURSE A FURTHER DOWN ON A
THEN WE'RE LOOKING AT THE SOUTH SATELLITE RENOVATION, WHERE IT'LL BE A WALKTHROUGH DUTY FREE AS PART OF THE SOUTH SATELLITE RENOVATION AND THEN THE WALKTHROUGH DUTY FREE ON A
AND THESE AREN'T TYPICAL WHAT YOU'RE FINDING IN A LOT OF AIRPORTS
BUT THE TREND, ESPECIALLY INTERNATIONALLY, IS THAT WALK THROUGH IMMERSIVE EXPERIENCE THAT WE GIVE OUR PASSENGERS SO THAT THEY'RE ABLE TO REALLY BE A PART OF THE EXPERIENCE AND NOT JUST WALK INTO WHAT WE CALL IN LINE STORE
OUR TYPICAL DUTY FREE
WE WANT TO REALLY ELEVATE THE EXPERIENCE FOR OUR PASSENGERS
NEXT SLIDE, PLEASE
JUST POINTING OUT THERE'S A SMALL ONE ON D THAT WILL NOT BE PART OF THIS RFP BECAUSE IT'S GOING TO BE ABSORBED FOR ANOTHER CAPITAL PROJECT SO THAT WILL BE ELIMINATED
YOU WILL NOT SEE THAT PARTICULAR SMALLER DUTY FREE AS PART OF THIS PACKAGE
NEXT SLIDE, PLEASE
SO I WANT TO TURN IT OVER TO MY COLLEAGUE MANDY XIGGORES, WHO IS WITH AVIATION PLANNING
MANDY, THANKS, DON
HI, COMMISSIONER CHO
MANDY XIGGORES, SENIOR DEVELOPMENT MANAGER WITH THE CAPITAL PROGRAMS TEAM
NEXT SLIDE, PLEASE
TODAY I'LL BE REQUESTING FUNDING TO COMPLETE THE PROJECT DEFINITION DOCUMENT FOR ONE OF THE LOCATIONS THAT THIS DUTYFREE VENDOR WILL BE OCCUPYING ON CONCORDE A
THE CONCEPT YOU WILL SEE TODAY, AS DAWN SAID, IS MORE OF AN IMMERSIVE LOCATION, A WALKTHROUGH DUTY FREE THAT WOULD BE THOUGHTFULLY LOCATED NEAR THE IAS EXIT INTO CONCOURSE A FOR CONNECTING INTERNATIONAL PASSENGERS AS WELL AS THE NEW INTERNATIONALLY CAPABLE GATES AT THE END OF A
AS DON SAID, OUR AIRPORT IS LACKING DUTY FREE RETAIL SPACE, AND THIS CONCEPT WILL PROVIDE OVER 11,000 SQFT TO OUR PASSENGERS
THIS CONCEPT ALSO INCLUDES A CONFERENCE CENTER EXPANSION ON THE MEZZANINE LEVEL THAT I'LL SHOW IN FUTURE SLIDES
NEXT SLIDE, PLEASE
THIS SLIDE SHOWS A VERY HIGH LEVEL PROJECT ROADMAP
TODAY, I'M REQUESTING AUTHORIZATION TO COMPLETE THE PROJECT DEFINITION DOCUMENT, AND DON IS REQUESTING THE DUTYFREE VENDOR RFP AUTHORIZATION
OUR HOPE IS THAT THESE TWO PROCESSES WILL WORK IN PARALLEL SO THAT WE CAN POTENTIALLY HAVE THE NEW VENDOR ON BOARD NEAR THE TIME WE COME BACK FOR DESIGN AUTHORIZATION, WE THINK THAT IT'S IMPORTANT THAT THE DUTYFREE VENDOR IS ABLE TO WORK WITH OUR FUTURE DESIGN TEAM ON THE BASE BUILDING CHANGES SO WE CAN WORK WITH THEM TO PROVIDE A SPACE THAT IS ARCHITECTURALLY INTEGRATED INTO OUR FACILITY
OUR GOAL IS TO HAVE THE DUTY FREE UP AND RUNNING IN Q THREE OF 2026
NEXT SLIDE, PLEASE
SO WHAT YOU'LL BE SEEING TODAY IS THE WORK THAT WE'VE COMPLETED IN PHASE ONE OF OUR PDD DEVELOPMENT
TODAY, I'M REQUESTING FUNDING TO COMPLETE THE DOCUMENT BY FURTHER REFINING OUR PREFERRED CONCEPT
OUR GOAL IS TO HAVE THIS DOCUMENT COMPLETED BY Q TWO OF NEXT YEAR
NEXT SLIDE, PLEASE
OUR PREFERRED DUTY FREE CONCEPT IS UNIQUE IN THAT IT TOUCHES THE MEZZANINE CONCOURSE AND BAGGAGE CLAIM LEVELS OF THE TERMINAL
I WILL WALK THROUGH EACH LEVEL TO HELP ORIENT YOU TO THE PROPOSED CHANGES
FIRST, WE'LL START WITH THE CONCOURSE LEVEL
NEXT SLIDE, PLEASE
IN THIS GRAPHIC, YOU HAVE A BIRD'S EYE VIEW OF CURRENT CONDITIONS ON THE TICKETING LEVEL
THE AREA OUTLINED IN RED DOTS IS OUR CURRENT BARRIER BETWEEN SECURE AND NON SECURE
ON THE NON SECURE SIDE, YOU'LL NOTICE OUR AOB ELEVATORS TO THE RIGHT, THE ADJACENT RESTROOM IN THE OLD HUDSON NEWS COFFEE STAND
INSIDE THE SECURE AREA YOU'LL SEE ON THE BOTTOM LEFT, THE IAF EXPANSION AND WHERE THE EXIT FOR CONNECTING PASSENGERS FLOW INTO THE A CONCOURSE
TO THE RIGHT OF THAT, YOU SEE THE CURRENT EXIT FOR CONCOURSE
YOU'LL ALSO NOTICE A NUMBER OF OTHER TENANTS AS YOU MOVE NORTH THROUGH CONCOURSE A TOWARDS CHECKPOINT TWO
THESE SPACES ARE CURRENTLY OCCUPIED AND WILL BE IMPACTED BY THE NEW DUTY FREE
DON THANK YOU, MANDY
AS MANDY MENTIONED, WE HAVE FIVE TENANTS THAT WILL BE IMPACTED BY THE EXPANDED DUTY FREE, AND THEY'RE REALLY IN TWO CATEGORIES
ONE OR THREE OF THEM ARE NEWER BUILDS ARE SPA, THE IN MOTION AND SORROWSKI, AND THEY HAVE SIMILAR LEASE TERMS AND THEN THE TWO OTHER FOOD LOCATIONS OF MANCHIWALK AND AFRICAN LANDS
THEY HAVE DIFFERENT LEASE LANGUAGE AND BASED ON THEIR LEASE LANGUAGE, WE ARE WORKING WITH ALL FIVE OF THE TENANTS
SOME WILL BE RELOCATED AND OTHERS WILL BE BUYING THEM OUT
AND SO THE TEAM INTERNALLY IS WORKING WITH ALL THOSE TENANTS SO WE CAN HAVE A SMOOTH TRANSITION
UP UNTIL THIS MORNING, WE'RE STILL HAVING CONVERSATIONS WITH THEM, SO THIS WILL BE A SMOOTH TRANSITION
WE WILL MAKE SURE THAT THE TENANTS AREN'T NEGATIVELY IMPACTED AS MUCH AS POSSIBLE
MANDY, THANKS TOG NEXT SLIDE, PLEASE
THIS IS THE CONCEPT FOR THE WALKTHROUGH DUTY FREE
THERE ARE SOME KEY FEATURES THAT I'D LIKE TO HIGHLIGHT
THIS CONCEPT FEATURES LARGE RETAIL SPACES TO THE EAST AND WEST, LABELED HERE AS AREA ONE AND AREA THREE
THOSE AREAS COMBINED ARE EQUAL TO NEARLY 9000 SQFT OF NEW RETAIL SPACE IN THE CENTER ISLAND LABELED AREA TWO
WE'VE INCLUDED A LARGE MUSIC STAGE AS WELL AS DEDICATED SPACE FOR SMALL BUSINESS KIOSKS
THE GRAY AREA IS CIRCULATION SPACE IMMERSING THE PASSENGERS WITHIN THE RETAIL EXPERIENCE
WE'VE ALSO RECOGNIZED THAT PASSENGERS CONNECTING FROM THE NEW IAF MAY BE LOOKING FOR ASSISTANCE, SO WE'VE INCLUDED A LARGE CUSTOMER SERVICE INFORMATION HUB, WHICH YOU CAN SEE IN LIGHT BLUE ON THE BOTTOM LEFT OF THIS LAYOUT
FINALLY, WE WILL BE RELOCATING TO THE EXIT FROM THE A CONCOURSE AS HIGHLIGHTED IN GREEN
WE'LL BE INCLUDING AUTOMATED EXIT LANES TO IMPROVE SECURITY IN THIS AREA
NEXT SLIDE, PLEASE
HERE IS A RENDERING OF THE SPACE THAT CALLS OUT THOSE AREAS IN A MORE REALISTIC SENSE
ONE THING THAT YOU CAN MAKE OUT MORE CLEARLY HERE THAN IN THE LAST GRAPHIC IS THE INCORPORATION OF AN EXTERNAL STAIRCASE, WHICH I WILL DISCUSS IN UPCOMING SLIDES
ALL IN ALL, WE'LL BE ADDING APPROXIMATELY 11,000 ADDITIONAL SQUARE FEET OF DUTY FREE RETAIL SPACE IN THIS LOCATION
NEXT SLIDE, PLEASE
NOW, IF WE WERE TO KIND OF PLOP YOU DOWN INTO THIS PLAN, THIS IS HOW THE SPACE WOULD FEEL IF YOU ARE A CONNECTING IAF PASSENGER HEADING NORTH DOWN CONCOURSE
A
ONE THING THAT I WANT TO CALL OUT HERE IS THAT THESE ARCHITECTURAL FEATURES ARE FOR CONCEPT PURPOSES ONLY ARCHITECTURAL FINISHES, RATHER, FOR CONCEPT PURPOSES ONLY
WE'LL BE WORKING CLOSELY WITH THE NEW DUTY FREE VENDOR TO ENSURE THAT THEIR CONCEPTS ARE INTEGRATED INTO THE REST OF THE FACILITY
NEXT SLIDE, PLEASE
IF YOU WERE TO TURN YOUR HEAD AND LOOK SOUTH DOWN THE ACON COURSE, YOU'LL SEE THE NEW INFORMATION HUB TO YOUR LEFT, THE SMALL BUSINESS AND MUSIC ISLAND TO YOUR RIGHT AND THE CAPITOL HILL FOOD COURT AHEAD
NEXT SLIDE, PLEASE
NOW WE WILL MOVE FROM THE CONCOURSE LEVEL UP TO THE MEZZANINE LEVEL
NEXT SLIDE, PLEASE
AS YOU MAY RECALL, IN THAT FIRST BIRD'S EYE VIEW, I SHOWED YOU, THIS DUTYFREE WILL BE MOVING THE LINE BETWEEN SECURE AND NON SECURE TO ABSORB THE SPACE WHERE THE HUDSON COFFEE STAND USED TO BE NEAR THE AOB ELEVATORS
NOW THAT THIS AREA IS CONVERTED TO BEING SECURE, WE HAVE TO PROTECT THE SECURITY BOUNDARIES TO ENSURE THAT NO ONE COULD THROW ANYTHING INTO THE SECURE AREA
TO DO THIS, OUR CONCEPT PROPOSES A MEZZANINE EXPANSION
NEXT SLIDE, PLEASE
THIS IS WHAT THAT LID WOULD POTENTIALLY LOOK LIKE
THIS IS THE EXTENSION OF THE PO PORT CONFERENCE CENTER ON THE MEZZANINE TO CONTINUE PAST THE RESTROOMS ALL THE WAY TO THE CURTAIN WALL
THIS EXPANSION WOULD NOT ONLY SECURE THE NEW DUTY FREE, BUT WOULD ALSO PROVIDE AN ADDITIONAL 3000 SQFT SQUARE FEET FOR CONFERENCE CENTER GUESTS
THIS AREA COULD BE USED FOR OPEN SEATING, BREAKOUT SPACE, OR EATING AREA FOR BUFFETS
WE'D ALSO INCLUDE IN THE SPACE A PURPOSEBUILT NURSING ROOM FOR CONFERENCE CENTER GUESTS AS WELL AS ADDITIONAL STORAGE
THIS EXPANSION DID TRIGGER A BUILDING AND FIRE CODE THAT REQUIRED THE ADDITION OF AN EGRESS STAIR, WHICH YOU CAN SEE HERE AS WELL
THIS EGRESS STAIR WOULD BE USED BY CONFERENCE CENTER GUESTS IN CASE OF AN EMERGENCY GETTING GUESTS DOWN TO THE BAGGAGE CLAIM LEVEL WHERE THEY COULD EXIT THE BUILDING
THIS STAIR WILL BE FULLY FIRE RATED AND WILL BE USED FOR EMERGENCIES ONLY
NEXT SLIDE, PLEASE
PLACING YOU ON THE MEZZANINE LEVEL, YOU'LL SEE THE NICE AREA FOR THE CONFERENCE CENTER CUSTOMERS THAT HAS LOTS OF LIGHT AND A NICE VIEW OF THE GINA MARIE LINDSAY HALL
NEXT SLIDE, PLEASE
THIS IS A VIEW OF THE EXPANSION
IF YOU WERE STANDING AT THE ENTRANCE OF THE NEW CHECKPOINT ONE ON THE BAGGAGE CLAIM LEVEL, WE FOUND THAT THE EGRESS AIR OFFERED US A GREAT OPPORTUNITY TO INCLUDE A MEDIA WALL IN THIS PRIME LOCATION
THERE'S BEEN MANY USES IDENTIFIED FOR THIS WALL, INCLUDING WAYFINDING ADVERTISING, ART AND PORT MESSAGING TO IAS METERS AND GREETERS
AS WE MOVE THROUGH THE DESIGN, WE WILL BE WORKING CLOSELY WITH OUR INTERNAL TEAMS TO CONTINUE OUR ONGOING EFFORT TO FIND SYNERGIES BETWEEN ART SIGNAGE AND ADVERTISING
FINALLY, ON THIS RENDERING, YOU WILL SEE AN EXTENDED GLASS RAILING ON THE MEZZANINE LEVEL EXTENDING 8FT HIGH
THIS WILL BE ONE OF THE FIRST PROJECTS TO CARRY FORWARD THIS NEW SECURITY IMPROVEMENT TO LIMIT UNFETTERED ACCESS TO PUBLIC GATHERING AREAS
ARCHITECTURALLY, WE WILL BE WORKING TO MATCH THE FINISHES OF THE NEW CHECKPOINT, ONE FOR CONTINUITY OF THE GML HALL
NEXT SLIDE, PLEASE
NOW WE'LL TALK A LITTLE BIT ABOUT THE PROJECT COSTS AND BUSINESS CASE
NEXT SLIDE, PLEASE
WE HAVE IDENTIFIED A PROJECT COST RANGE DURING OUR FIRST PHASE OF THE PDD OF 24 TO 42 MILLION
THIS IS A CLASS FIVE ESTIMATE AND WILL CONTINUE TO BE REVISED AS WE MOVE THROUGH PDD COMPLETION THAT RESULTS IN A 15% DESIGN
I WANT TO NOTE THAT THIS COST IS FOR THE BASE BUILDING CHANGES ONLY AND DOES NOT INCLUDE ANY FIT OUTS THAT WOULD BE COMPLETED BY THE SELECTED NEW DUTY FREE VENDOR
NEXT SLIDE, PLEASE
I BELIEVE THE COMMISSION IS FAMILIAR WITH THIS SLIDE
THIS OUTLINES WHERE WE ARE IN THE PROCESS AS WE REQUEST THE FUNDS TO COMPLETE OUR PROJECT DEFINITION DOCUMENT
NOW I WILL HAND IT OVER TO MY COLLEAGUE MATT ANG, WHO IS A SENIOR ANALYST WITH COMMERCIAL MANAGEMENT, TO TALK THROUGH OUR BUSINESS CASE
NEXT SLIDE, PLEASE
THANKS MANDY, FOR INTRODUCING ME, SO I GUESS I DON'T HAVE TO INTRODUCE MYSELF, BUT I WORK ON DON HUNTER'S TEAM AND I'M HERE TO TALK ABOUT THE BUSINESS CASE FOR THIS DUTY FREE EXPANSION
BUT BEFORE I DO, LET'S BRIEFLY DESCRIBE THE PROCESS BEHIND WHAT WE DO FOR THE ANALYSIS FOR THE BUSINESS CASE
SO WHENEVER WE HAVE NON AIRLINE PROJECTS THAT REQUIRE SUBSTANTIAL CAPITAL EXPENDITURE, WE'RE TASKED TO LOOK AT THIS PROJECT IN TWO DIFFERENT WAYS
ONE CAN THE NEW BUSINESS THAT IS CREATED BY THE PROJECT GENERATE ENOUGH REVENUE THAT IT PAYS FOR THE PROJECT'S OWN CAPITAL COSTS? AND IF YES, THE SECOND THING THAT WE LOOK AT IS DO THE REVENUE STREAMS FROM THIS NEW PROJECT PERFORM WELL ENOUGH THAT THE NET PRESENT VALUE OF THE CASH FLOWS OF THE NEW PROJECT ARE GREATER THAN THE NET PRESENT VALUES OF THE CASH FLOWS OF THE SAME FOOTPRINT HAD WE NOT DONE ANYTHING? SO WHAT YOU'RE LOOKING AT IN THIS TABLE IS A SUMMARY OF THE PROCESS THAT IS JUST DESCRIBED ON THE LEFT
MOST COLUMN LABELED BASE CASE DO NOT EXPAND IS BASICALLY THE FOOTPRINT OF THE PROJECT AREA
HAD WE NOT DONE ANYTHING
SO THIS IS THE ADR UNITS THAT ARE CURRENTLY THERE OPERATING TILL THE END OF THIS ANALYSIS PERIOD, WHICH GOES TILL THE END OF 2036
WHILE THE CASH FLOW OF THE BASE CASE IS NOT INSIGNIFICANT, IT'S NOT NEARLY CLOSE TO THE NET PRESENT VALUE OF CASH FLOWS
IN THE SCENARIO WHERE WE DO BUILD THE DUTY FREE CONCEPT IN ITS PLACE, WHICH IS THE COLUMN TO YOUR FAR RIGHT
THE SCENARIO WHERE THE DUTY FREE CONCEPT IS BUILT SHOWS THAT DESPITE INCURRING OVER $30 MILLION IN COST TO DESIGN AND BUILD THE CONCEPT
THE REVENUE FROM THIS DUTY FREE WOULD PAY OFF THE COST OF THE PROJECT IN SEVEN YEARS AND FUTURE CASH FLOWS DISCOUNTED BACK TO PRESENT VALUE IS WORTH OVER $25 MILLION THAN THE PRESENT VALUE OF THE CURRENT OPERATION
SHOULD WE NOT BUILD THE CONCEPT
THIS PASSES OUR CHECKS TO DETERMINE FINANCIAL VIABILITY AND IS A WORTHWHILE PROJECT TO PURSUE FROM A QUANTITATIVE PERSPECTIVE
THANKS, MATT
NEXT SLIDE, PLEASE
SO THIS IS THE END OF OUR PREPARED MATERIALS
WE ARE HAPPY TO TAKE ANY QUESTIONS ON EITHER DON'S ITEM, WHICH IS THE DUTY FREE VENDOR SOLICITATION OR THE DUTY FREE ON CONCORDE
MR COMMISSION PRESIDENT, I CAN GO AHEAD AND CALL THE ROLL FOR QUESTIONS OR COMMENTS AND STAFF
THANK YOU, MANDY
PLEASE CALL THE ROLL
I'LL BEGIN WITH COMMISSIONER BOWMAN FOR QUESTIONS OR COMMENTS ON THIS ITEM
SORRY I KEEP GETTING MUTED
THANK YOU
THIS IS AN AMBITIOUS PROJECT AND I DEFINITELY UNDERSTAND AND AGREE WITH THE NEED FOR AN EXPANDED AND MORE INTERACTIVE DUTY FREE
OUR DUTY FREE CERTAINLY DOESN'T LOOK LIKE OTHER PURE AIRPORTS
AS YOU'VE MENTIONED
CAN YOU ELABORATE A LITTLE BIT MORE ON THE FEEDBACK FROM NEARBY TENANTS AND THE IMPACT TO THEM EVERY TIME WE DO A CONSTRUCTION PROJECT, NOTHING IS DONE IN A VACUUM
AND SO I WOULD JUST LIKE A LITTLE BIT MORE REASSURANCE THAT THE TENANTS THAT WOULD BE IMPACTED BY THAT CONSTRUCTION ARE AGREEABLE TO THAT AND WE'VE DONE EVERYTHING WE CAN TO LIMIT A NEGATIVE IMPACT
ABSOLUTELY, COMMISSIONER BOWMAN
SO AS I STATED, WE MET WITH THE TENANTS ACTUALLY LAST WEEK AND THERE'S TWO BUCKETS OF TENANTS
AS I WOULD SAY, TWO OF THE TENANTS HAVE LANGUAGE WITHIN THEIR LEASES THAT REQUIRE US TO RELOCATE THEM IF THEY'RE GOING TO BE IMPACTED BY A PROJECT
WE HAVE SPOKEN WITH THOSE TENANTS ACTUALLY UP UNTIL THIS MORNING AS WELL TO TALK TO THEM ABOUT RELOCATION AND WHAT THOSE AREAS WOULD LOOK LIKE
WE'RE ACTUALLY GOING TO DO A WALK THROUGH WITH THEM ON TUESDAY OF NEXT WEEK TO SHOW THEM SOME ALTERNATE LOCATIONS FOR THOSE RELOCATIONS TO SEE IF THEY'RE ACCEPTABLE TO THEM
THE OTHER THREE TENANTS ARE NEWER AND THEIR LANGUAGE ALLOWS FOR OPERATIONAL PURPOSES THAT WE CAN BUY THEM OUT THE AMORTIZED AMOUNT OF WHAT'S LEFT ON THERE
WE MET WITH THOSE TENANTS ALSO LAST WEEK AND THEY UNDERSTAND JUST LOOKING FOR TIMELINES AND WE'LL FURTHER MEET WITH THEM AND GIVE THEM TIMELINES AS WE MOVE FORWARD
AND I THINK OUR MEETING WITH THEM IS A TESTAMENT TO WHY WE DIDN'T HAVE ANY NAYSAYERS COMING TODAY, BUT WE ARE DEFINITELY GOING TO WORK WITH THEM AND MAKE SURE THAT THE IMPACT TO THEM IS AS LEAST AS POSSIBLE
AND JUST ONE OF THE THINGS THAT THEY ASKED AND I THINK IS REASONABLE THAT WHATEVER LOCATION WE FIND FOR RELOCATION, THEY'RE ABLE TO STAY OPEN AND OPERATE THEIR CURRENT LOCATION, WHICH WE THINK IS A VERY REASONABLE ASSET THAT THEY ARE GENERATING FUNDS AS THEY'RE MOVING ALONG TO THE RELOCATION
HOPEFULLY THAT ANSWERS YOUR QUESTION
YEAH, IT DOES
I GUESS THE ONLY THING I'D ADD TO THAT IS I APPRECIATE THAT OUTREACH
IT FEELS I'LL BE CANDID A LITTLE AFTER THE FACT, BUT THE STAFF IS PROPOSING A PROJECT AND THEN LATER LETS THE TENANTS KNOW TO BE RELOCATED IS STILL A BIG DEAL
AND I GUESS I'VE BEEN AROUND LONG ENOUGH TO KNOW THAT CLEARLY NOT EVERY LOCATION AT THE AIRPORT IS EQUAL
AND SO I WOULD ANTICIPATE THERE WILL BE SOME CHALLENGES WITH RELOCATION
AND SO I GUESS I'D ASK IS THAT WE'VE GOT INCUMBENT TENANTS WHO HAVE PUT DOWN THE MONEY, AND I KNOW AT LEAST I WOULD ASSUME A COUPLE OF THEM ARE MORE LOCALLY OWNED BUSINESSES
AND SO I GUESS I JUST WANT TO MAKE SURE THAT WE'RE DOING EVERYTHING WE CAN TO REDUCE THE IMPACTS ON THEIR BOTTOM LINE AND BEING REALLY COGNIZANT
AND I'D ASK YOU ALL TO BRING TO THE COMMISSION WHATEVER MIGHT NEED TO BE DONE TO KEEP THOSE IMPACTS AT A MINIMUM
SO IT WOULD BE GREAT TO BE ABLE TO NOT HAVE TO GO DOWN THE ROAD WHERE WE'RE HAVING CONTENTIOUS DISCUSSIONS ABOUT THAT MOVING FORWARD
IT'S ONE THING TO START THE DISCUSSION
BUT AGAIN, I'VE BEEN AROUND LONG ENOUGH TO KNOW EVERY TIME WE ASK SOMEBODY TO MOVE, IT'S JUST NOT AS EASY AS IT SOUNDS
AND THEN COMMISSION
GO AHEAD, LANCE
WELL, COMMISSIONER, JUST WANT TO JUST WRITE TO YOU WHAT DON SAID
DON AND THE TEAM HAVE BEEN MEETING WITH THE IMPACT OF TENANTS
I HAVE HAD A COUPLE OF MEETINGS WITH THEM AS WELL, AND I CAN ASSURE YOU THAT WE ARE DOING EVERYTHING IN OUR POWER TO DO EXACTLY WHAT YOU'RE SAYING IS TO MINIMIZE THE IMPACT ON THESE AFFECTED CUSTOMERS
AND ONE OF THE THINGS I WANTED TO ADD, LANCE, IS THAT MR BOWMAN, BECAUSE OF THE PAST, WE DID SOME PROCESS IMPROVEMENT, WORKED WITH AIRPORT DINING AND RETAIL EXECUTIVE DIRECTOR METRICS ASK
AND ONE OF THE THINGS THAT WE FOUND IS THAT WE NEEDED TO IMPROVE OUR PROCESS
AND ONE OF THE THINGS THAT WE ARE PLANNING TO DO IS ABSORB SOME OF THOSE COSTS UP FRONT WHEN WE HAVE BUILD OUTS
AND SO THAT ALLEVIATES SOME OF THE PAIN THAT THE TENANTS WERE COMPLAINING ABOUT
SO WE'RE GOING TO BE WORKING WITH THEM THROUGH THE ENTIRE PROCESS
AND WE HAVEN'T BEEN ABLE TO COME TO YOU AND TELL YOU ABOUT THAT PROCESS IMPROVEMENT BECAUSE OF COVID AND SOME OTHER THINGS
BUT WE PLAN TO DISCUSS IT AT THE AVIATION COMMITTEE, SO YOU CAN SEE THAT DOCUMENTATION
THANKS, DON'T
I APPRECIATE IT
ON THE LAST COMMENT
SO MANY THINGS GO TO THE AVIATION COMMITTEE, BUT ALL FIVE COMMISSIONERS HAVE TO MAKE THE ULTIMATE DECISION
SO I'M NOT ON THE AVIATION COMMITTEE, SO I WOULDN'T HEAR ABOUT IT
SO I'D LOVE JUST MORE DETAILS AS IT MOVES THROUGH THE PROCESS
ABSOLUTELY
THANK YOU SO MUCH
THANK YOU
COMMISSIONER CHO
I'M MOVING TO COMMISSIONER CALKINS QUESTIONS AND COMMENTS FOR STAFF
THANKS FOR THE PRESENTATION
I HAD A CHANCE A COUPLE OF MONTHS AGO, TOURED SOME OF THESE LOCATIONS WITH BOTH A COUPLE OF TENANT CONCESSIONNAIRES AND ALSO WITH DON AND HER TEAM
YOU GUYS MAKE A STRONG CASE FOR WHY THIS MAKES SENSE FOR US
AND I THINK IN PARTICULARLY AS WE THINK ABOUT THE REBOUNDING INTERNATIONAL TRAVEL MARKET, WHICH CLEARLY IS THE PRINCIPLE CUSTOMER BASE FOR THESE STORES
SO I'M GRATEFUL WE'VE GOT SUCH CONFIDENT LEADERSHIP IN DON IN THE PROGRAM
AND I LOOK FORWARD TO SEEING THE RESULTS OF THIS
THANK YOU, DON
MAYBE NOT TO PUT YOU ON THE SPOT
THERE'S A LOT OF OPPORTUNITIES FOR INTERNATIONAL, BUT WITHIN THE DUTY FREE CONCEPT, THERE ARE ALSO OPPORTUNITIES FOR DOMESTIC PASSENGERS AS WELL
CORRECT
ABSOLUTELY
CURRENTLY IN DUTY FREE
IF YOU'RE NOT INTERNATIONAL TRAVELER, YOU CAN PURCHASE MAKEUP, YOU CAN PURCHASE PERFUME, ALL OF THE BEAUTY LINES YOU CAN PURCHASE IN THERE FOR DUTY PAID
SO THAT'S BUILT INTO IT, WHICH IS A GOOD PORTION OF THE SALES AS WELL
THANK YOU
COMMISSIONER CALKINS MOVING TO COMMISSIONER CHO
YEAH
WELL, THANK YOU SO MUCH FOR THIS GREAT PRESENTATION
I WANTED TO SWITCH BACK TO THE BUSINESS CASE RIGHT HERE AND ASK A QUICK QUESTION
I THINK IT'S PRETTY ASTONISHING THAT AFTER ALL THE COSTS OF THIS BUILD OUT AND LEASE BUYOUTS THAT WE'D STILL BE MAKING 25 MILLION
BUT I THINK IT'S EVEN BETTER
THAT CORRECT ME IF I'M WRONG
IF YOU LOOK AT JUST THE TOTAL REVENUE COMPARISON, IF WE JUST LOOK AT REVENUE, YOU'RE ACTUALLY SEEING A 300% INCREASE IN REVENUE AS A RESULT OF THIS PROJECT
IS THAT CORRECT? CORRECT? ABSOLUTELY CORRECT
COMMISSIONER CHO, DUTY FREE AMONG THE ADR CATEGORIES IS BY FAR, POUND FOR POUND, THE BIGGEST CONTRIBUTOR ON A SQUARE FOOT BASIS IN TERMS OF NET REVENUE TO THE PORT
OF COURSE, YOU CAN'T MAKE YOUR WHOLE AIRPORT DUTY FREE
BUT WE'VE HAD DISCUSSIONS WITH THE SUBJECT MATTER EXPERTS IN THE ADR TEAM AND SAID EVEN IF YOU ADD THIS 11,000 SQUARE FOOTAGE CONCEPT, THAT THIS WILL NOT HAVE A TEARIOUS EFFECT ON OVERALL DEMAND FOR DUTY FREE AIRPORT LINE, WOULD IT BE SAFE TO ASSUME IF WE WERE TO MAKE CONSERVATIVE FORECAST THAT AFTER THE YEAR 2036, THERE'S $110,000,000 WOULD BASICALLY JUST BE POSITIVE CASH FLOW FOR US
OH, YEAH
ABSOLUTELY
SO WE JUST CHOSE 2036 AS A STOPPING POINT
IT'S TEN YEARS AFTER THE CONCEPT IS OPEN
ONE OF THE RULES OF BUSINESS ANALYSIS IS THAT YOU COULD RUN IT FOREVER AND THEN IT WOULD HAVE POSITIVE NPD
SO WE WANTED TO MAKE THE ANALYSIS PERIOD SHORT ENOUGH THAT IF WE CAN HAVE A POSITIVE NPV AGAINST A BASE CASE WITHIN TEN YEARS AND WE KNOW WITH EVEN MORE CERTAINTY THAT THIS IS A GOOD PROJECT, AND THEN IS IT FAIR TO LOOK AT THIS IN A WAY WHERE IF YOU WERE TO AMORTIZE THE $30 MILLION COST OVER THE NEXT 15 YEARS, THIS IS REALLY ONLY COSTING US $2 MILLION A YEAR FOR THE NEXT 15 YEARS
GENERALLY, THAT'S SOMETHING THAT YOU CAN DO NOW
WE ALSO FRONT LOAD THE COSTS IN THE BUSINESS CASE JUST TO MIRROR THE CONSTRUCTION CALENDAR
I MEAN, IF WE REALLY WANTED TO BE MORE PRECISE, WE COULD DO IT WITH HOW IS IT FUNDED? AND THEN WE GO DOWN THE RABBIT HOLE OF BOND FUNDING CALENDARS AND ALL THAT
BUT THIS IS THE MOST CONSERVATIVE WAY TO CONVEY THE COST INCURRED
OH, THAT'S GREAT
AND FOR DON I WANTED TO REALLY ASK QUITE QUICKLY, CAN YOU JUST GIVE ME A BRIEF PRIMER ON HOW THE LEASE STRUCTURE MAY DIFFER FOR DUTY FREE TENANTS AS OPPOSED TO OUR DYING TENANT? IS IT THE SAME STRUCTURE WHERE WE HAVE MAGS AND PROFIT SHARING, ALL THAT STUFF, OR IS IT DIFFERENT FOR DUTY FREE? I'M JUST TRYING TO UNDERSTAND HOW THE FOOD AND BEVERAGE, RETAIL SERVICES AND DUTY FREE
WHAT IS DUTY FREE REVENUE, EXACTLY? IS IT JUST LEASE? SO TYPICALLY IN A DUTY FREE LEASE, THERE WOULD BE MAG
AND THEN THERE'S A PERCENTAGE STRUCTURE BY CATEGORY, BECAUSE TYPICALLY WE WOULD GET MORE FOR ALCOHOL SALES AND THINGS LIKE THAT
SO THERE'S LIKE A PERCENTAGE BREAKDOWN BY CATEGORY
AND THEN TYPICALLY BECAUSE OF THE DOLLAR AMOUNT SPENT FOR THE BILL FOR DUTY FREE, THE TERM IS TYPICALLY A TABLET LONGER THAN A FOOD, BEVERAGE OR A REGULAR RETAIL
WHEN WE BUILT DUTY FREE AT LAX, THAT WAS A $50 MILLION BILL ON THE TENANT SIDE, THAT WASN'T EVEN OUR BASE BUILDING, SO THEY'RE PRETTY HIGH BUILD OUT
SO WE GIVE THEM A LITTLE EXTRA TERM
BUT BASED ON THE CATEGORY OF SALES AND THE AMOUNT OF SALES, WE TEND TO DO REALLY WELL WITH DUTY FREE
OKAY
GREAT
SO IT'S NOT JUST WE'RE RECEIVING RENT FROM THEM, BUT WE ALSO GET A SHARE OF THE SALES
ABSOLUTELY
OKAY
PERFECT
THANK YOU
THAT'S ALL I HAD
THANK YOU
COMMISSIONER CHO MOVE INTO COMMISSIONER STEINBRUECK? YEAH
I FEEL THIS IS WELL SUPPORTED AS FAR AS THE BUSINESS CASE AND JUSTIFICATION, I THINK THAT'S BEEN LAID OUT VERY CLEARLY AND CONVINCINGLY
I JUST WANTED TO ASK, I KNOW THE DIVERSITY AND CONTRACTING FALLS UNDER THE FEDERAL REQUIREMENTS
WHAT SPECIFICALLY ARE THOSE GOALS FOR THIS PROJECT FOR WOMEN, MINORITY DISADVANTAGED BUSINESSES? PARTICIPATION
AND WILL THIS ALSO TRIGGER PRIORITY HIGHER? SO I'M NOT CERTAIN ABOUT WHAT THE WMBE PARTICIPATION IS BECAUSE THAT WOULD COME IN DURING CONSTRUCTION PHASE WHEN WE GO TO CONSTRUCT IT
BUT HOWEVER, ON THE CONCESSION SIDE OF IT, WE TYPICALLY HAVE A JOINT VENTURE PARTNERSHIP WHERE THEY PARTNER WITH A WMBE BUSINESS OR AN ACDBE BUSINESS TO DO WORK
BUT I THINK WHEN WE TALK ABOUT DIVERSITY AND CONTRACTING AND THE PORT HIRE, WE WOULD ENGAGE WITH MEN'S GROUP WHEN WE'RE GOING TO DO THE CONSTRUCTION
OKAY
CAN YOU ALSO TALK ABOUT THE KIOSK THE SMALL IN THE MIDDLE? ABSOLUTELY
ONE OF THE THINGS THAT WE BUILT INTO THIS PROJECT IS THAT WE'RE GOING TO REQUIRE THE DUTY FREE OPERATOR TO PARTNER WITH A WMBE BUSINESS AND PROVIDE OPPORTUNITIES FOR THEM IN THAT MIDDLE AREA THAT MANDY SHOWED US
IT'LL BE ONE OR TWO SMALL BUSINESS KIOSKS WHERE THEY WOULD PARTNER WITH THE DUTY FREE OPERATOR
OKAY
I HAVE A SECOND QUESTION
AND IT HAS TO DO WITH THE SUSTAINABILITY FRAMEWORK
I DIDN'T HEAR ANY MENTION OF INTENTIONS REGARDING THE SUSTAINABILITY FRAMEWORK AND REVIEW PROCESS FOR THAT
YEAH
SO THIS PROJECT IS STILL KIND OF IN ITS INFANCY
SO IN OUR NEXT PHASE, WHICH WE'RE GETTING AUTHORIZATION FOR TODAY, WE'LL BE MOVING TOWARDS A 15% DESIGN, WHICH WILL INCLUDE A SPARK MEETING AND KIND OF RUNNING THROUGH THAT FRAMEWORK AND SEEING WHAT THAT MEANS
SO WE INTEND TO DO THAT KIND OF IN THE SECOND HALF THAT WE'RE ASKING FOR AUTHORIZATION FOR TODAY
ALL RIGHT, FAIR ENOUGH
THANK YOU
THANK YOU, STEINBRUECK
COMMISSIONER FELLEMAN
THANK YOU
I WAS ACTUALLY FOLLOWING UP A LITTLE BIT WITH COMMISSIONER STEINBRUECK'S COMMENTS
SO IT SEEMS LIKE THE WHOLE CONCEPT BUILD OUT IS ALREADY LIKE, SORT OF THE PORT DESIGN, AND SOMEONE TRYING TO DISTINGUISH IT FROM AN ADR TYPE LEASE
SOMEBODY COMES TO US WITH THE CONCEPT
WE ALREADY HAVE THE CONCEPT
WE ALREADY HAVE THE LAYOUT, AND ALSO WE ALREADY ARE ARTICULATING ITS PROFITABILITY
SO I'M JUST IMAGINING THE TENANT THAT WANTS TO COMPETE FOR THIS
WHAT IS THEIR SORT OF OUT OF POCKET INVESTMENT? AND THEN WHAT CONTROL DO WE HAVE, LIKE THE KIND OF QUESTIONS THAT COMMISSIONER STEINBRUECK WAS ARTICULATING IN TERMS OF MEETING CERTAIN GOALS THAT WE HAVE IN TERMS OF RATING THE DIFFERENT TENANT APPLICANTS? HOW IS OUR POLICY OBJECTIVES BEING EMBRACED IN THE EVALUATION OF THE COMPETITION? SO COMMISSION GAVE US GUIDELINES FOR OUR LEASING FOR RFPS THAT WE'VE BEEN FOLLOWING
AND SO IT WILL GO THROUGH THOSE GUIDELINES THAT HAS YOUR PARTIES WOVEN INTO THEM
AND THAT'S HOW WE EVALUATE
AND THEN ON THE EVALUATION PANEL, WE ALWAYS HAVE A MEMBER OF OUR ENVIRONMENTAL GROUP THERE TO WEIGH IN ON TO MAKE SURE THAT WE ARE LOOKING AT THE AYES
IT NEEDS TO BECAUSE I'M NOT AN ENVIRONMENTAL SPECIALIST
THAT'S WHY WE HAVE THEM ON THE TEAM TO MAKE SURE THAT WE ARE FOLLOWING OUR GUIDELINES AND YOUR SUSTAINABILITY GOALS
AND COMMISSIONER CHO TO JUMP ON WHAT DON SAID FOR THE BASE RIGHT NOW
WE'RE WORKING THROUGH CONCEPT REFINEMENT
SO OUR THOUGHT WAS BECAUSE THIS PROJECT IS VERY IMPACTFUL TO THE BUILDING AND THAT WE'RE EXTENDING A SLAB AND THERE ARE STRUCTURAL PIECES AND WE'RE PULLING OUT PART OF A CURTAIN WALL AND THINGS LIKE THAT
BUT IT JUST MADE MORE SENSE FOR THE PORT TO KIND OF BE LEADING THAT DESIGN
BUT AS I SAID IN MY PRESENTATION, OUR HOPE IS THAT WHILE WE'RE FINISHING THE PDD AND DON'T GO OUT FOR SOLICITATION, THAT BY THE TIME WE'RE COMING BACK TO YOU AND ASKING FOR DESIGN AUTHORIZATION, WE HAVE A PARTNERSHIP WITH WHOEVER THAT VENDOR IS
SO OUR BASE BUILDING CHANGES ARE REFLECTING WHAT THEY WOULD WANT THEIR FINAL SPACE TO LOOK LIKE
FOR EXAMPLE, IF, SAY, THE SUCCESSFUL CONSENT DUE TO FREE CONCESSION AREAS AS A GUCCI CONCEPT, THEY WOULD BE HAVING THAT GUCCI DESIGN AS PART OF THE BUILDER
WHICH KIND OF HAVE THE SHELL SPACE, THE RENDERINGS THAT YOU SHOW ARE CONCEPTS
THEY'RE NOT NECESSARILY THE END PRODUCT
SO WHOEVER THE SUCCESSFUL VENDORS COMMISSIONER WOULD ACTUALLY HAVE THEIR DESIGN, HAVE YOU SEEN A LOT OF THE FANS AT AIRPORTS, RIGHT? IT WOULD LOOK AND FEEL SOMETHING LIKE THIS, BUT WE WILL BE DEFINITELY GIVING THEM GUIDELINES, LIKE, WE'RE ALREADY MEETING WITH OUR ARCHITECTURE GROUP AND F AND I, AND WE'RE GOING TO TELL THEM THIS IS THE LOOK AND FEEL THAT WE WANT FOR THIS, A CONCOURSE
WE WILL BE TELLING THEM THIS IS THE LOOK AND FEEL THAT WE WANT FOR SALE SATELLITE
SO AS THEY COME WITH THE BID AND THEIR DESIGN, WE CAN SEE ARE THEY FOLLOWING THE GUIDELINES THAT WE GAVE THEM AND THAT'LL BE PART OF WHETHER THEY'RE THE SUCCESSFUL BIDDER OR NOT AS WELL
SO SUSTAINABILITY FRAMEWORK THAT WOULD HAVE TO GO THROUGH ARCHITECTURAL STANDARDS THAT THEY WILL HAVE TO ABIDE TO, BUT THEY WILL HAVE THEIR OWN KIND OF LOOK AND FEEL WITH THEIR FINISHES AND STUFF
YEAH
WE WANT TO MAKE SURE BECAUSE IT'S FOLKS THAT ARE GOING TO BE POTENTIALLY EXITING THE IAF
THAT THEY'RE NOT WALKING TO GET TO THEIR GATE, AND THEN THEY'RE LIKE, OH, I DON'T FEEL LIKE I'M SUPPOSED TO BE IN THIS SPACE
THIS IS VERY DIFFERENT
WE WANT TO MAKE SURE THAT IT STILL MAKES SENSE WITH THE BUILDING BECAUSE IT'S A LARGE SPACE
WELL, CERTAINLY NOBODY WOULD KNOW BETTER WHAT WE WANT THAN THE FOLKS WHO WANT IT
RIGHT
SO I APPRECIATE YOU EXERCISING THAT CONTROL
AND MY QUESTION WAS MORE THAN JUST THE ENVIRONMENTAL ONE
IT'S ALL OF OUR SOCIETAL TYPE ASPIRATIONS
AND I'M JUST WONDERING, HOW IS THIS DIFFERENT THAN IF IT WAS RUN THROUGH THE ADR PROCESS? IS OUR CONTROL ANY DIFFERENT? IF YOU HAD YOUR DRUTHERS WOULD, YOU MAKE IT ALL THE SAME
WHAT IS SUBSTANTIALLY DIFFERENT
SO WHAT'S DIFFERENT HERE IS WHAT WE'RE TRYING TO DO IS FIND SYNERGIES
TYPICALLY, WHAT WOULD HAPPEN IS I WOULD COME FOR THE AUTHORIZATION AND RUN MY ADR PROCESS SEPARATELY, AND MANDY WOULD COME FOR HER PDD SEPARATELY AND KIND OF RUN HER PROCESS
AND WHAT WE'RE TRYING TO DO IS FIND MORE SYNERGIES WITH PROJECTS TO COME TOGETHER
SO THERE STILL WILL BE AN ADR PROCESS
WE'RE JUST KIND OF BLENDING THIS TOGETHER, BUT WE WILL STILL GO THROUGH OUR PROCESS
MANDY WILL STILL HAVE HER PROCESS, BUT WE WANTED TO COME IN FRONT OF YOU TOGETHER TO SHOW THE SYNERGIES WITH THE PROJECT
SO FOR ADR, WE WILL STILL DO AN RFP, WE'LL STILL HAVE A PANEL, WE'LL STILL HAVE THE SUCCESSFUL BIDDERS, AND WE WILL COME TO YOU AND SAY, HEY, THIS IS WHAT WE'RE WANTING TO DO
THAT WILL STILL HAPPEN
AND WE'LL STILL COME BACK FOR DESIGN AUTHORIZATION
BY THEN
WE SHOULD HAVE AT LEAST A 15% DESIGN AND WE'LL CONTINUE TO GO THROUGH THE CAPITAL PROCESS AS WELL
WELL, JUST DON'T LET THE CAT BOTH PROCESSES RUNNING IN PARALLEL
CORRECT
JUST DON'T LET THE CAT OUT OF THE BAG THAT SOMETIMES GOVERNMENT HAS LEFT AND RIGHT HANDS TO WORK TOGETHER
VERY GOOD TO HEAR
THANK YOU VERY MUCH
I DON'T WANT TO SPOIL ANYBODY'S PREPOSITIONS ANYWAY
VERY AMBITIOUS
GREAT VISION
I THINK WE CAN MOVE ON UNLESS THERE ARE ANY OTHER QUESTIONS
WE HAVE A VOTE COMING UP ON THE RELATED ITEM
SO LET US SEE
DO YOU NEED A FLOOR, MR COMMISSION PRESIDENT? YES
THANK YOU
1 SECOND
ALL RIGHT
SO THE MOTION HAS BEEN MOVED AND SECOND, IS THERE ANY FURTHER DISCUSSION ON THE MOTION? I SEE NO HANDS RAISED
ALL RIGHT
THANKS
HER CARD
PLEASE CALL THE ROLL FOR THE VOTE, BEGINNING WITH COMMISSIONER BOWMAN
AYE
THANK YOU
COMMISSIONER CHO
YOU COMMISSIONER CHO
AYE
THANK YOU
COMMISSIONER STEINBRUECK
YES
THANK YOU
COMMISSIONER FELLEMAN
AYE
THANK YOU
THERE ARE FIVE YESSES AND ZERO NOS FOR THIS ITEM
WELL, THEN THE MOTION PASSES
THANK YOU
THANK YOU
PLEASE READ THE NEXT ITEM
THE RECORD EXECUTIVE DIRECTOR METRUCK HAS ALREADY INTRODUCED THE ITEM AS PART OF THE PRIOR INTRODUCTION
YES, THANK YOU
I'LL READ THIS INTO THE RECORD
THIS IS AGENDA ITEM TEN B AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO AUTHORIZE 475,000 TO COMPLETE A PROJECT DESIGN DOCUMENT AND TO PROGRESS THE OVERALL PROJECT DESIGN TO 15% FOR THE CONCOURSE, A DUTY FREE PROJECT AT SEATTLE TACOMA INTERNATIONAL AIRPORT FOR AN ANTICIPATED TOTAL PROJECT COSTS IN THE RANGE OF 24 MILLION TO 42 MILLION
AND MR COMMISSION PRESIDENT
OKAY
COMMISSIONERS, AS THE INTRODUCTION OF PRESENTATION FOR THIS ITEM WAS GIVEN TO, THE LAST ITEM WILL NOW MOVE DIRECTLY TO ANY ADDITIONAL QUESTIONS REMAINING ON THE MOTION AND VOTE FOR THIS ITEM
ARE THERE ANY ADDITIONAL QUESTIONS FROM THE MEMBERS? PLEASE USE YOUR HAND TO INDICATE IF SO, YOU'D LIKE TO SPEAK
I DO NOT SEE ANY ADDITIONAL HANDS
THANK YOU
SO IS THERE A MOTION AND A SECOND TO PROVE ITEM CAN BE MOTION HAS BEEN MOVED AND SECONDED, CLAIRE HART, PLEASE CALL THE ROLL FOR THE VOTE
THANK YOU
BEGINNING WITH COMMISSIONER BOWMAN
AYE
THANK YOU
COMMISSIONER CALKINS
AYE
THANK YOU
COMMISSIONER CHO
AYE
THANK YOU
COMMISSIONER STEINBRUECK
YES, THANK YOU
COMMISSIONER FELLEMAN
HI
THANK YOU
YOU HAVE FIVE YESSES AND ZERO NOS FOR THIS ITEM
ONCE AGAIN, THE MOTION PASSES
SO, CLERK HART, PLEASE READ THE NEXT ITEM INTO THE RECORD AND WE'LL HEAR THEM FROM EXECUTIVE METRUCK TO INTRODUCE THE ITEM
I'LL NOTE FOR THE RECORD THAT THIS ITEM IS FOR INFORMATION ONLY AND THERE IS NO VOTE AT THIS TIME
THANK YOU
THIS IS AGENDA ITEM TEN C CARBON EMISSIONS AND ACCELERATING CENTURY AGENDA OBJECTIVES
AS YOU'LL HEAR IN THIS PRESENTATION, THE BOARD HAS MADE GREAT PROGRESS TOWARDS OUR CLIMATE CHANGE TARGETS AND AS SUCH, I'LL BE RECOMMENDING TODAY THAT THE PORT INCREASE ITS LEVEL OF CARBON CLIMATE AMBITION AND ACCELERATE OUR GOALS
COMBATING CLIMATE CHANGE WILL REQUIRE TRANSFORMATIONAL, INNOVATION AND CHANGE
AND I WANT THE PORT OF SEATTLE TO LEAD BY EXAMPLE
I'D LIKE TO THANK THE ENTIRE ENVIRONMENT AND SUSTAINABILITY TEAM FOR THEIR THOUGHTFUL ANALYSIS THAT LED TO THIS RECOMMENDATION
THE PRESENTERS WILL INCLUDE SANDRA KILLROY, SENIOR DIRECTOR, ENVIRONMENTAL SUSTAINABILITY AND ENGINEERING, LESLIE STANTON, SENIOR DIRECTOR, AVIATION ENVIRONMENTAL PROGRAMS GROUP, AND RYAN CHILD, SENIOR ENVIRONMENTAL MANAGEMENT SPECIALIST, MARITIME ENVIRONMENTAL SUSTAINABILITY
GREAT
THANK YOU
EXECUTIVE DIRECTOR, METRUCK AND COMMISSIONERS, AS WAS MENTIONED, I THINK BY COMMISSIONER FELLEMAN AT THE BEGINNING OF THIS MEETING, THE INTERNATIONAL PANEL ON CLIMATE CHANGE RECENTLY REPORTED A CODE RED TO UNDERSCORE THE URGENT NEED FOR ACTION TO REDUCE GREENHOUSE GAS EMISSIONS
AND THE PORT ALREADY HASN'T PLACED AMBITIOUS GOALS FOR EMISSIONS REDUCTIONS, AND THE RESULTS OF OUR ACTIONS AND INVESTMENTS TO DATE HAVE BEEN POSITIVE
BUT WE HAVE HEARD CLEARLY FROM LEADERSHIP AND OUR COMMUNITY A DESIRE FOR THE PORT TO BE EVEN BOLDER IN TRANSFORMING OUR OPERATIONS AND BEING A LEADER AMONG PORTS
AND IT IS WITH THIS IN MIND THAT MY TEAM AND I BRING FORWARD THE EXECUTIVE DIRECTOR'S PROPOSAL TO ACCELERATE OUR GREENHOUSE GAS REDUCTION GOALS
SO TODAY THE ENVIRONMENTAL TEAM WILL REPORT THE MOST CURRENT INFORMATION ON OUR GREENHOUSE GAS EMISSIONS INVENTORY AND THE STATUS OF OUR GREENHOUSE GAS REDUCTION EFFORTS
TRACKING OUR EMISSIONS IS A CRITICAL PART OF DEVELOPING STRATEGIES AND REPORTING OUR PROGRESS
AND THEN THE TEAM WILL WALK THROUGH THE PROPOSAL TO ACCELERATE OUR GOALS
I DO WANT TO THANK THE ENVIRONMENTAL TEAM IN ADVANCE FOR THEIR WORK IN THIS AREA AND FOR THEIR STRONG SUPPORT IN JOINING LEADERSHIP TO TAKE BOLD ACTION
AND SO I WILL NOW TURN IT TO LESLIE STANTON WITH OUR AVIATION ENVIRONMENTAL TEAM TO START THE PRESENTATION
THANK YOU, SANDY
GOOD AFTERNOON, COMMISSIONERS AND EXECUTIVE DIRECTOR METRUCK
I'M LESLIE STANTON, SUSTAINABILITY MANAGER FOR THE AIRPORT, AND I'M HERE WITH RYAN CHILD, WHO'S ENVIRONMENTAL SPECIALIST FOR THE MARITIME DIVISION
I THINK WE HAVE SOME SLIDES
GREAT
THANK YOU
AND I THINK WE CAN JUST GET RIGHT INTO IT
WE'LL JUST GO TO THE FIRST SLIDE
SO ESSENTIALLY, WHAT WE'RE GOING TO DO FOR YOU TODAY IS TO PRESENT AN OVERVIEW OF OUR CURRENT CARBON EMISSIONS AND OUR TRENDS
WE'LL LOOK AT THE PORT PORT WIDE SCOPE ONE AND TWO EMISSIONS, AND THEN ALSO SCOPE THREE EMISSIONS FOR THE AVIATION DIVISION IN THE MARITIME DIVISION SEPARATELY, FOR FOLKS WHO AREN'T FAMILIAR WITH THIS, OUR SCOPE ONE AND TWO EMISSIONS REFER TO THOSE EMISSIONS THAT WE OWN AND CONTROL DIRECTLY
SO THOSE ARE THINGS LIKE THE FUEL THAT WE USE IN THE VEHICLES AND THE VEHICLE FLEET THAT WE HAVE, THE GASOLINE THAT GOES INTO THOSE VEHICLES AND IS AN EMITTED DIRECTLY TO THE ENVIRONMENT
IN ADDITION, SCOPE TWO IS THE KIND OF EMISSIONS WHERE IF WE USE ELECTRICITY, BUT THERE'S AN UPSTREAM EMISSIONS FROM PLUGGING IN SOME APPLIANCES, AND THEN THERE'S SOME FOSSIL FUEL BURNED AT THE GENERATION OF THE SOURCE
THEN THOSE ARE EMISSIONS THAT WE COUNT AS WELL
SCOPE THREE EMISSIONS ARE, BY DEFINITION, THOSE EMISSIONS THAT WE CAN INFLUENCE, BUT WE DON'T HAVE DIRECT CONTROL OVER
SO THOSE WOULD BE THINGS LIKE THE CRUISE SHIPS AND THE PLANES THAT OPERATE AT OUR FACILITIES
SO WE'LL GO THROUGH THOSE EMISSIONS AND TRENDS
AND THEN WE'LL TALK ABOUT THE CARBON REDUCTION INITIATIVES THAT WE'VE BEEN ENGAGED IN AND OUR ESTIMATED IMPACTS AND THE BENEFITS OF THOSE
AND THEN WE'LL TALK ABOUT ACCELERATING THE CENTURY AGENDA OBJECTIVES FOR ALL THREE SCOPES AND THEN THE PROPOSED OBJECTIVES AND THE POTENTIAL IMPACTS OF THOSE
SO I'M GOING TO TURN IT OVER TO RYAN CHILD, WHO WILL THEN GO THROUGH OUR ADMISSIONS ON SCOPE ONE AND TWO AND THEN TALK ABOUT MARITIME
GREAT
THANKS, LESLIE
AND IF I CAN MOVE TO THE NEXT SLIDE, PLEASE
SO FORT WIDE SCOPE ONE AND TWO GREENHOUSE GAS EMISSIONS DECREASED 20% AS OF THE 2020 GREENHOUSE GAS EMISSIONS INVENTORY, AND THAT'S COMPARED TO OUR BASELINE, WHICH IS FROM 2005, AS SHOWN IN THE FIGURE HERE ON YOUR SLIDE AND AS LIKELY MENTIONED, SCOPE ONE AND TWO GREENHOUSE GAS EMISSIONS SOURCES INCLUDE LIQUID FUELS, WHICH IS IN THE LIGHTER BLUE ON THIS CHART HERE FROM OUR PORT VEHICLE, SO THAT'S YOUR DIESEL, GASOLINE AND PROPANE
IT ALSO INCLUDES PURCHASE ELECTRICITY HERE IN GREEN THAT IS NOT SEPARATELY METERED AND SOLD TO OUR TENANTS AND NATURAL GAS, WHICH IS SHOWN IN THE DARK BLUE THAT'S USED IN BUILDINGS AND THE AIRPORT AND NATURAL GAS, AS YOU CAN SEE, IS THE LARGEST CONTRIBUTOR TO SCOPE ONE AND TWO EMISSIONS
SO THE DECREASE IN EMISSIONS FROM EACH OF THESE SOURCES IS DUE TO A COMBINATION OF FACTORS
LAST YEAR, THE PORT SIGNED A CONTRACT TO PURCHASE RENEWABLE NATURAL GAS FOR THE BOILERS THAT HEAT THE AIRPORT AND TO FUEL THE RENTAL CAR FACILITY BUS FLEET
THE PORT BEGAN USING RENEWABLE NATURAL GAS AT SEA STARTING IN OCTOBER OF 2020, WHICH LED TO A SUBSTANTIAL REDUCTION IN NATURAL GAS EMISSIONS
THE IMPACT OF RENEWABLE NATURAL GAS IS SHOWN ON THE SLIDE IN THE RED OUTLINE OVER THE 2020 EMISSIONS LEVELS, AND THAT IS FROM USING RNG FOR JUST THREE MONTHS OF THE YEAR
WE ANTICIPATE THAT WE'LL REACH THE PORT 50% GREENHOUSE GAS REDUCTION TARGET USING RENEWABLE NATURAL GAS ONCE WE HAVE THE RESULTS OF THE 2021 READING HOUSE GAS EMISSIONS INVENTORY, WHICH WILL REFLECT HAVING PURCHASED RNG FOR MORE THAN ONE FULL YEAR
THE COVID 19 PANDEMIC LED TO MANY CHANGES IN THE PORT'S DAY TO DAY OPERATIONS THAT ALSO IMPACTED GREENHOUSE GAS EMISSIONS
FOR EXAMPLE, USE OF THE MARITIME FLEET VEHICLES AND NATURAL GAS USE OF MARITIME PROPERTIES DECLINED AS THE NATURAL GAS USE IN THE AIRPORT BUS FLEET
HOWEVER, NATURAL GAS USE ACTUALLY INCREASED AT SEA AIRPORT DURING COVID 19 AS MORE ENERGY WAS NEEDED TO HEAT THE TERMINAL THAT HAD FEWER PASSENGERS IN IT
AND NEXT SLIDE
SO THIS SLIDE HIGHLIGHTS OUR SCOPE ONE AND TWO EMISSION REDUCTION INITIATIVES
AS I MENTIONED IN SPRING 2020, THE PORT SIGNED A TEN YEAR CONTRACT TO PURCHASE RNG RENEWABLE NATURAL GAS DERIVED FROM LANDFILL WASTE IN THE SECOND QUARTER OF 2020 AND OFFICIALLY BEGAN PURCHASING RNG TO HEAT THE AIRPORT AND POWER THE RENTAL CAR FACILITY IN OCTOBER OF 2020
I WANT TO REITERATE, THOUGH THAT RENEWABLE NATURAL GAS AS AN INTERIM SOLUTION
WHILE WE UPDATE THE CENTRAL MECHANICAL PLANTS TO USE A LOW CARBON FUEL SOURCE, AND THAT UPDATE IS PART OF THE UTILITY MASTER PLANNING EFFORT THAT'S UNDERWAY AT SEA
SO WE ANTICIPATE USING NATURAL GAS UNTIL ABOUT 2030
OTHER EMISSION REDUCTION INITIATIVES THAT OCCURRED WHERE THAT THE PORT ALSO JOINED SOUND ENERGIES GREEN DRAFT PROGRAM, WHICH ALLOWS US TO PURCHASE CLEAN ELECTRICITY FROM THE AIRPORT
AND THAT HELPS REDUCE EMISSIONS ASSOCIATED WITH ELECTRICITY USE
SINCE OUR WATERFRONT PROPERTIES ARE LOCATED IN SEATTLE ON THE MARITIME SIDE, WE'RE LUCKY TO HAVE EXTREMELY CLEAN ELECTRICITY FROM SEATTLE CITY LIGHTS
HOWEVER, SIMILAR TO THE AIRPORT, NATURAL GAS IS ALSO THE BIGGEST CONTRIBUTOR OF SCOPE ONE AND TWO EMISSIONS FROM MARITIME PROPERTIES
SO WE'RE FOCUSED ON ELIMINATING FOSSIL NATURAL GAS ACROSS OUR MARITIME FACILITIES, WHICH WILL INVOLVE REPLACING HVAC SYSTEMS WITH HIGH EFFICIENCY ELECTRIC MODELS AND EVALUATING OPTIONS TO USE RENEWABLE NATURAL GAS IF NEEDED
IN THE INTERIM
THE PORT HAS ALSO PILOTED SOLAR POWER ON MARITIME BUILDINGS AND NOW HAS FOUR SOLAR RAYS AT FISHERMAN'S TERMINAL, SOCIAL BAY MARINA AND OUR PIER 69 HEADQUARTERS
WHILE A SMALL IMPACT OVERALL ON OUR GREENHOUSE GAS EMISSIONS, THESE ARRAYS HAVE PRODUCED ENOUGH RENEWABLE ENERGY TO POWER 35 HOMES FOR A YEAR, AND THEY REDUCE DEMAND ON THE ELECTRICITY GRID
AND FINALLY, WE PURCHASE RENEWABLE DIESEL FOR THE PORT'S DIESEL POWERED FLEET, VEHICLES AND EQUIPMENT, WHICH IS A KEY STRATEGY AND THE SUSTAINABLE FLEET PLAN, WHICH I'LL TALK ABOUT ON THE NEXT SLIDE
NEXT SLIDE PORT STAFF FINALIZED A SUSTAINABLE FLEET PLAN THIS FALL, WHICH RECOMMENDS STRATEGIES ACROSS THE PORT TO REDUCE EMISSIONS FROM FOSSIL FUEL USE AND IN OUR OVER 1500 FLEET VEHICLE AND EQUIPMENT ASSETS THAT THE PORT OWNS
THIS PLAN INCLUDES SEVERAL RECOMMENDATIONS TO IMPLEMENT PORT WIDE
THESE INCLUDE INSTALLING EV CHARGING STATIONS TO POWER AN ELECTRIC VEHICLE FLEET USING RENEWABLE NATURAL GAS AND RENEWABLE DIESEL IN THE INTERIM AND FOR DIESEL POWERED VEHICLES THAT REMAIN IN THE FLEET AND POOLING AND BRIGHT SIZING VEHICLES IN ORDER TO RETIRE OLDER VEHICLES AND INCREASE UTILIZATION OF THOSE THAT REMAIN IN THE FLEET
NEXT SLIDE THE NEXT FEW SLIDES MOVE INTO THE PORT
SCOPE THREE EMISSION TRENDS AND REDUCTION INITIATIVES AND AS LESLIE MENTIONED, SCOPE, THREE EMISSIONS COME FROM MARITIME ACTIVITIES LIKE CRUISE SHIPS AND GREEN OPERATIONS, AND THEN ON THE AVIATION SIDE FROM AIRPLANES, GROUND TRANSPORTATION, AND TENANT OPERATIONS
AND WE DISCUSSED MARITIME SCOPE THREE, SEPARATE FROM AVIATION, SINCE THESE EMISSIONS ARE COMING FROM DIFFERENT SOURCES
SO WITHIN OUR MARITIME SCOPE, THREE CRUISE SHIPS MAKE UP 70% OF THE PORT MARITIME RELATED EMISSIONS
THIS DOES NOT INCLUDE EMISSIONS FROM CARGO TERMINAL THAT ARE OPERATED BY THE NORTHWEST SEAPORT ALLIANCE
THE REMAINING MARITIME RELATED EMISSIONS COME FROM GRAIN SHIPS, COMMERCIAL HARBOR VESSELS, WHICH INCLUDED FISHING AND TUGBOATS, RECREATIONAL VESSELS, RAIL LOCOMOTIVES, CARTER HANDLING EQUIPMENT, AND CRUISE SHUTTLE BUSES
MARITIME EMISSIONS ARE INVENTORY EVERY FIVE YEARS WITH THE COMPLETION OF THE PUGET SOUND MARITIME AIR EMISSIONS INVENTORY AND AS OF THE MOST RECENT INVENTORY, WHICH WAS CONDUCTED FOR THE YEAR 2016 PORT OF SEATTLE'S
MARITIME SCOPE THREE GREENHOUSE GAS EMISSIONS DECREASED 20% FROM THE 2005 BASELINE
THIS DECLINE WAS LARGELY DUE TO NEW INTERNATIONAL AND NATIONAL REGULATIONS SUCH AS THE PORT AMERICAN EMISSIONS CONTROL AREA, INCREASED USE OF SHORE POWER BY CRUISE VESSELS, IMPROVED VESSEL AND EQUIPMENT EFFICIENCY, AND SUCCESSFUL PORT POLICIES AND PROGRAMS THAT ENCOURAGE REPLACEMENT OF OLDER EQUIPMENT AND THE USE OF CLEANER MARITIME FUELS
WHILE WE DON'T HAVE SCOPE THREE INVENTORY DATA FOR 2020, WE DO KNOW THAT COIN 19 SIGNIFICANTLY IMPACTED MARITIME SCOPE RESOURCES AS THERE WAS NO CRUISE SEASON DURING THE LAST YEAR
EXCUSE ME, RYAN
YEAH
THE RECREATIONAL VESSELS HAVE A SIGNIFICANTLY LARGE PERCENTAGE THERE
SO I WAS JUST RECALLING THIS INCLUDES THE FISHING VESSELS, THOUGH, DOESN'T IT? THE FISHING VESSELS, I BELIEVE, ARE PART OF THE COMMERCIAL HARBOR VESSELS, WHICH ARE THE SORT OF TEAL SHADE OF BLUE
THAT WAS WHAT I WAS ORIGINALLY THINKING, BUT IT IS INTERESTING, THOUGH, THAT RECREATIONAL VF VESSELS WOULD BE THAT LARGE
IS IT REALLY JUST THAT IN THE CATEGORY? YOU'RE SURE OF THAT? I BELIEVE SO
BUT COMMISSIONER CHO WILL DOUBLE CHECK THAT AND I CAN FOLLOW UP WITH YOU AFTER THE MEETING
ALL RIGHT
THANK YOU
BUT THAT'S ME, YOU AND EVERYBODY ELSE WHO OWNS A LITTLE BOAT
SO IT SHOWS A SIGNIFICANT SITUATION THERE
ALL RIGHT
SORRY FOR INTERRUPTING
PLEASE MOVE ON
NO PROBLEM
AND IF WE COULD GET THE NEXT SLIDE, PLEASE
SO THIS SLIDE SHOWS OUR MARITIME SCOPE
THREE EMISSION REDUCTION INITIATIVES AND SUPPORT CAN INFLUENCE SCOPE THREE EMISSIONS FROM THE MARITIME SIDE THROUGH EACH OF THESE INITIATIVES
ONE OF OUR PRIMARY INITIATIVES IS COMPLETING THE SEATTLE WATERFRONT CLEAN ENERGY STRATEGY, WHICH WILL CREATE A ROADMAP TO DECARBONIZE MARITIME OPERATIONS IN SEATTLE AND THROUGH IMPLEMENTING RECOMMENDATIONS OF THAT STRATEGY
SO THAT WORK IS ACTUALLY ALREADY UNDERWAY
AS WE HEARD DURING PUBLIC COMMENT FROM DEBORAH SMITH, WITH PARTNERSHIPS THAT HAVE ALREADY FORMED WITH SEATTLE CITY LIGHT IN THE NORTHWEST SEAPORT ALLIANCE, AS WELL AS WITH INDUSTRY PARTNERS, AND AN EARLY ACTION OF THE CLEAN ENERGY STRATEGY IS TO COMPLETE THE INSTALLATION OF SHORE POWER AT PIER 66, WHICH WILL ESTABLISH A SHORE POWER CONNECTION AT ALL OF OUR CRUISE BIRDS
WE'RE COMMITTED TO WORKING WITH THE CRUISE LINES TO REACH 100% OF OUR HOMEPORT CRUISE SHIPS, BEING EQUIPPED TO A SHORE POWER BY 2030 AND TO REACH 100% CONNECTION RATE SO THAT ALL OF OUR HOME PART SHIPS ARE CONNECTING WHEN THEY'RE AT THAT PORT OF SEATTLE
ADDITIONALLY, THE PORT WILL ENGAGE AT THE NATIONAL AND INTERNATIONAL LEVELS TO STRENGTHEN AND SUPPORT SUSTAINABLE MARITIME FUELS AND THE TRANSITION TO ZERO EMISSION TECHNOLOGIES
AND WE'RE ALSO DEVELOPING GREEN LEASING POLICIES THAT INCORPORATE SUSTAINABILITY AND BEST PRACTICES INTO OUR LANDSIDE, LEASES AND BIRTHING AGREEMENTS
SO EACH OF THESE ARE KEY IMPLEMENTATION ACTIONS FOR THE PORT TO WORK TOWARD THE VISION OF THE 2020 NORTHWEST PORTS CLEAN AIR STRATEGY, WHICH WAS ADOPTED LAST APRIL
THE STRATEGY SET A VISION TO PHASE OUT EMISSIONS FROM SEAPORT RELATED ACTIVITIES BY 2050, AND LATER IN THIS MEETING, WE'LL GO INTO EVEN MORE DETAIL ABOUT THAT IMPLEMENTATION PLAN, AND NOW I'LL PASS THE PRESENTATION OVER TO LESLIE STANTON TO TALK ABOUT THE AIRPORT SCOPE FOR EMISSIONS AND INITIATIVES
THANKS, BRIAN
GREAT
THANKS
GOING TO THE NEXT SLIDE
THAT'S GOOD
THIS IN TURN IS THE AIRPORT SCOPE THREE EMISSIONS
AND AS YOU CAN SEE FROM THE VERY CLEAR INCREASE IN AIRCRAFT OPERATIONS AND THE CORRELATING INCREASE IN OUR EMISSIONS, WE'VE HAD A STEADY TREND UPWARDS SINCE 2015, AND THEN FROM 2019 TO 2020, WE SAW, ALONG WITH OTHER AIRPORTS, A SIGNIFICANT DECREASE IN OUR EMISSIONS DUE TO COVID AND THE LACK OF FOLKS WANTING TO TRAVEL
SO THAT WAS REFLECTED QUITE WELL IN OUR MISSION INVENTORY
AND YOU CAN TELL FROM THE BAR CHART, THE NAVY BLUE, THE DARKER BLUE REPRESENTS THE AIRCRAFT RELATED
THESE ARE LANDINGS, TAKE OFFS AND SEVERAL MILES OUT FROM THE AIRPORT
AND THEN THE LIGHTER BLUE IS OUR GROUND TRANSPORTATION
AND THAT INCLUDES PEOPLE DRIVING TO AND FROM THE AIRPORT TO CATCH THEIR FLIGHTS
AND THEN THE SMALL GREEN BAR AT THE TOP IS THE EMISSIONS FROM OUR TENANTS, WHICH ARE ALSO CONSIDERED SCOPE THREE
NEXT SLIDE, PLEASE
SO LOOKING AT THE INCREASE, IT'S VERY CLEAR I THINK FROM THESE NUMBERS THAT IT'S IMPORTANT THAT WE CONTINUE TO ADVANCE OUR SCOPE THREE INITIATIVES
THIS INCLUDES LOOKING FOR WAYS TO ADVANCE SUSTAINABLE AVIATION FUEL
AS FOLKS KNOW, WE'VE BEEN TESTING A LOT OF ECONOMIC STUDIES, STUDIES ON INFRASTRUCTURE, WHAT FEEDSTOCKS ARE AVAILABLE IN WASHINGTON, HOW CAN WE ADVANCE FUEL PRODUCTION? WHAT DOES THAT ECONOMIC ANALYSIS LOOK LIKE? AND HOW CAN WE ADVANCE THE CLEAN ENERGY ECONOMY HERE IN THE PORT WEST? WE'VE ALSO BEEN VERY ACTIVE IN ADVOCATING FOR STATE AND FEDERAL INITIATIVES AND LEGISLATION TO HELP US REDUCE EMISSIONS AND ADVANCE AGAIN, THAT CLEAN ENERGY ECONOMY
AND AS FOLKS KNOW, WE WERE VERY SUCCESSFUL IN WORKING SEVERAL YEARS WITH A NUMBER OF PARTNERS THROUGHOUT THE STATE AND LOCAL REGION ON THE WASHINGTON CLEAN FUEL STANDARD
AND WE'RE CONTINUING TO ADVOCATE FOR THE LENDER'S TAX CREDIT AT THE FEDERAL LEVEL
AND ALONG WITH THE BIDEN ADMINISTRATION STIMULUS FUNDING FOR LOW CARBON ENERGY SOURCES AND, OF COURSE, THE NECESSARY INFRASTRUCTURE
AND THEN LASTLY, AS THE COMMISSION OF THIS HAVE BEEN TALKING ABOUT A LOT LATELY, WHICH IS OUR GROUND TRANSPORTATION STRATEGIES
AND AGAIN, WE RECOGNIZE THIS IS A SIGNIFICANT SOURCE OF EMISSIONS
AND SO WE'RE CONTINUING TO LOOK AT STRATEGIES AND EVALUATE THEM TO ASSIST, SAY, THE TNCS AND MOVING TO EV TAXIS AS WELL, OTHER GROUND TRANSPORTATION PROVIDERS THAT THE PORT HAS CONTRACTS WITH
WE COULD SUPPORT THEM MOVING TO EV OR OTHER RENEWABLE FUELS
COMMISSIONER STAFF, DO YOU HAVE A QUESTION? QUICK QUESTION
I NOTICED IN THE BRIEFING MEMO THAT YOU DON'T MENTION ANY EFFORT OR STRATEGY TO ADDRESS THE FACT THAT SOUND TRANSIT MODE IS SO SMALL
AND WHY AREN'T WE WORKING ON STRATEGIES TO PROMOTE LIGHT RAIL TRANSIT AND BUS RAPID TRANSIT AS PART OF OUR OVERALL SET OF STRATEGIES? THANK YOU, COMMISSIONER CHO, IS SOMETHING THAT IS VERY IMPORTANT
IT WAS LISTED IN OUR GTAP INITIATIVES THAT WE'RE CONTINUING TO DEVELOP IN ADVANCE
I'LL JUST SAY ON THAT WE HAVE A NUMBER OF BRIEFINGS COMING UP TO PROVIDE MORE DETAIL ON HOW WE WOULD ALLOCATE FUNDS AND LOOK AT THE SPECIFIC WORK PLAN TO ADVANCE MORE TRANSIT AT THE AIRPORT
YOU CAN SEE ON THIS SLIDE
INCENTIVIZED BEHAVIOR CHANGE IS PART OF OUR WORK LOOKING AT ACCESS FEES, PARKING RATES, AND OF COURSE, MORE TRANSIT
WE ARE WITH YOU
WE STRONGLY SUPPORT MORE TRANSIT
THAT'S OBVIOUSLY THE MOST LOW CARBON WAY TO GET AROUND, AND WE DON'T HAVE A LOT OF IT AT THE AIRPORT
WE DO HAVE LINK LIGHT RAIL, WHICH IS TERRIFIC, AND WE ARE WORKING ON WAYS TO MAKE IT EASIER FOR PASSENGERS TO USE THAT
AND WE WERE EXCITED ABOUT THE NEW STATIONS THAT ARE OPENING UP
I WILL JUST SAY THAT FOR THE TRANSIT PIECE, IT'S A BIT MORE COMPLICATED BECAUSE WE HAVE TO WORK THROUGH OUR EXISTING SYSTEMS TO BRING THAT TRANSIT TO THE AIRPORT, AND THAT'S A BIT OF A LONGER INITIATIVE
I GUESS
ALL I'D SAY IS I WOULD SURE FEEL BETTER IF I SAW IT LISTED AMONG THE STRATEGIES HERE, ALONG WITH THE OTHERS THAT YOU'VE MENTIONED
AND INSTEAD OF BEING SORT OF EMBEDDED IN A MORE AMBIGUOUS KIND OF OVERALL MOST SPLIT STRATEGY, THANK YOU
WE CAN MAKE THAT MORE CLEAR IN FUTURE BRIEFINGS
IT'S CERTAINLY SOMETHING WE CAN THINK ABOUT
NEXT SLIDE THANK YOU
OKAY FOR FINISHED WITH QUESTIONS ON THAT PART
I'LL JUST GO RIGHT TO OUR ACCELERATING THE PORT'S CENTURY GENDER GOALS AND GREENHOUSE GAS OBJECTIVES
NEXT SLIDE SO, AS WE'VE BEEN TALKING ABOUT, OUR CURRENT OBJECTIVES ARE 15% BELOW 2005 LEVELS BY 2020 AND THEN 50% BELOW 2005 LEVELS BY 2030
AGAIN, AS RYAN MENTIONED, WE'RE GOING TO HIT THAT IN 2021 AND THEN CARBON NEUTRAL OR CARBON NEGATIVE BY 2050
THE PROPOSED FOR SCOPE ONE AND TWO EMISSIONS IS AGAIN THE SAME FOR THE 2020 GOAL AND THE 2030 GOAL, BUT GETTING TO NET ZERO OR BETTER BY 2040
AND WE SPECIFICALLY CHOSE THIS WORDING AND I THINK WAS COMMENTED ON FROM SEVERAL PUBLIC COMMENTS IN THE BEGINNING IS THAT NET ZERO IS A LITTLE MORE ROBUST THAN CARBON NEUTRAL OR CARBON NEGATIVE IN THE SENSE THAT ANY NEW CARBON DIOXIDE RELEASED INTO THE ATMOSPHERE FROM AN ORGANIZATION'S ACTIVITIES WOULD BE BALANCED BY AN EQUAL AMOUNT BEING REMOVED
SO WE THINK THAT'S GOING TO BE SOMETHING THAT WE CAN REACH
AND SO WE RECOMMEND THAT FOR THIS PARTICULAR OBJECTIVE
NEXT SLIDE
SO WHAT WOULD THAT LOOK LIKE FOR US ON OUR SCOPE ONE AND TWO EMISSIONS
HERE'S OUR REDUCTION PATHWAY FOR BOTH AVIATION AND MARITIME
AGAIN, WE'VE TALKED A LOT ABOUT RENEWABLE NATURAL GAS, AND WE WOULD CONTINUE TO USE THAT
WE HAVE A TEN YEAR CONTRACT
WE WOULD INCREASE THE YEAR OF THAT CONTRACT IF NECESSARY, BUT WE WOULD CONTINUE TO WORK WITH OUR CENTRAL MECHANICAL PLANT FOLKS TO UPGRADE THAT CENTRAL MECHANICAL PLANT AND MOVE OFF RNG IN THE FUTURE
THAT CERTAINLY IS THE PLAN
AT THE SAME TIME, RYAN GAVE A NICE OVERVIEW OF OUR FLEET WORK, SO WE WOULD EXPECT TO CONVERT MOST OF THOSE VEHICLES TO ELECTRIC OR SOME KIND OF RENEWABLE FUEL IN THE FUTURE
AGAIN, I THINK FOLKS ARE AWARE THAT THE WASHINGTON STATE LEGISLATURE VOTED IN THE CLEAN ENERGY TRANSFORMATION ACT AND THAT REQUIRES ALL OF OUR UTILITIES TO BE 100% CLEAN BY 2045
SO THERE'S A LITTLE BIT OF A GAP IN THERE, BUT I THINK WE COULD OVERCOME THAT WITH OTHER INITIATIVES IF WE GOT TO THAT POINT WHERE THOSE UTILITIES WERE NOT 100% CLEAN BY 2040 AND WE SET A LITTLE BIT OF TIME IN THERE
NEXT SLIDE
SO AGAIN, THIS IS JUST REVIEWING ESSENTIALLY THE TAKE HOME MESSAGE HERE
WE FEEL PRETTY CONFIDENT THAT WE CAN CONVERT THE CENTRAL MECHANICAL PLANT TO BE OFF NATURAL GAS BY 2040
AND THEN, ALTHOUGH WE WOULD CONTINUE WITH OUR NG CONTRACT UNTIL THAT PLANT FULLY SWITCHED OVER AND THEN THE REMAINING EMISSIONS AGAIN WILL BE RELATED TO PURCHASING ELECTRICITY, WE COULD PURCHASE ADDITIONAL RENEWABLE POWER IF NECESSARY
AND THEN, OF COURSE, WE EXPECT OUR FLEET VEHICLES TO TURN OVER FULLY BY 2040
I WILL ADD THAT THE STAFF RECOGNIZES THAT THESE ARE VERY AGGRESSIVE TARGETS, AND IT CERTAINLY RECOGNIZES THE NEW URGENCY THAT WE HAVE OR THE CONTINUED URGENCY WE HAVE AROUND REDUCING OUR EMISSIONS
AND WE ALSO NEED TO PRIORITIZE THOSE PROJECTS THAT HELP US REDUCE THOSE EMISSIONS
AND THAT WILL BE AN IMPORTANT DISCUSSION FOR THE FUTURE FOR THE ORGANIZATION TO THINK ABOUT
NEXT SLIDE
SO THEN MOVING TO THE SCOPE THREE EMISSION REDUCTION OBJECTIVES FOR BOTH AVIATION AND MARITIME
AGAIN, OUR CURRENT OBJECTIVES FOR LOOKING OUT
WE DON'T RECOMMEND ANY CHANGES TO THE 2030 GOAL, BUT LOOKING OUT TO 2050, WE WOULD LIKE IT TO BE 100% OR CARBON NEUTRAL BY 2050 RATHER THAN 80% BY 2050
AGAIN, WE HAD A LOT OF ROBUST DISCUSSION ABOUT THE LANGUAGE HERE SHOULD BE NET ZERO OR CARBON NEUTRAL
AND GIVEN THE NATURE OF SCOPE THREE EMISSIONS, WE OPTED TO RECOMMEND THE CARBON NEUTRAL OR BETTER BY 2050, JUST TO GIVE US A LITTLE MORE ROOM TO WORK WITH OUR PARTNERS IN REDUCING THEIR EMISSIONS
WE MAY NEED TO BUY SOME OFFSETS
THAT'S NOT THE PREFERRED
OBVIOUSLY, THAT'S OUR LAST RESORT, BUT IT MAY BE NECESSARY
SO NEXT SLIDE, PLEASE
SO AGAIN, IN ORDER TO ACHIEVE THOSE OBJECTIVES, WE'RE GOING TO HAVE TO BE VERY CONSISTENT AND AGGRESSIVE IN THOSE INITIATIVES
SO ADVOCATING AT THE LEGISLATURE FOR STRENGTH AND TAILPIPE STANDARDS, RENEWABLE ENERGY PRODUCTION ACROSS MARITIME AND AVIATION INDUSTRIES
AGAIN, I THINK WE CAN LOOK AT OUR PREVIOUS SUCCESS WITH THE CLEAN FUEL STANDARD TO KNOW THAT THE PORT CAN BE A POWERFUL PLAYER
IF WE ARE ALIGNED WITH OTHER PARTNERS IN THE REGION AND THE STATE
WE ALSO WANT TO INCREASE REQUIREMENTS FOR OUR TNCS TAXIS AND OTHER GROUND TRANSPORTATION PROVIDERS TO HELP THEM TRANSITION TO RENEWABLE FUELS AND ELECTRIC VEHICLES AS NECESSARY AND THEN CONTINUE TO IMPLEMENT THE NORTHWEST CLEAN AIRPORT STRATEGY AND PARTNER WITH OTHER PORTS ON THE GETTING TO ZERO COALITION AND THEN CONTINUING TO LEAD AT BOTH THE AIRPORT AND THE SEAPORT BY INSTALLING INFRASTRUCTURE FOR RENEWABLE FUELS, WHETHER THAT'S STAFF OR ELECTRIC INFRASTRUCTURE FOR CHARGING OR NEW PV AND SHORE POWER
WHATEVER IT IS THAT WE'RE GOING TO BE ASKING OUR PARTNERS IN SCOPE THREE TO REDUCE THEIR EMISSIONS
NEXT SLIDE, PLEASE
LASTLY, AGAIN, AS I THINK YOU'VE SEEN HERE, WE HAD A VERY ROBUST DISCUSSION AT THE STAFF LEVEL, AND WE STRONGLY RECOMMEND ACCELERATING OUR GREENHOUSE GAS TARGETS
IT'S CLEAR THAT WE DO NEED TO RESPOND TO THE URGENCY OF THE CLIMATE CRISIS, AND THE PORT HAS JUST BEEN A PHENOMENAL LEADER IN THAT AND SHOULD CONTINUE TO DO SO
THESE GOALS DO ALIGN WITH WASHINGTON STATE GREENHOUSE GAS TARGETS, ALTHOUGH THEY'RE NOT EXACTLY THE SAME
BUT IT'S CERTAINLY, AS I'VE NOTED, BUILDS ON THE INITIATIVES THAT WE ALREADY HAVE UNDERWAY, AND WE FEEL CONFIDENT WE CAN MEET THESE TARGETS
AND AS I MENTIONED A NUMBER OF TIMES, THE PORT CAN CONTINUE TO LEAD AND SHOULD CONTINUE TO LEAD IN DEVELOPING THE CLEAN ENERGY ECONOMY FOR THE REGION AND REDUCING OUR EMISSIONS
SO THANK YOU
THAT'S THE LAST SLIDE
THAT'S THE END OF OUR FORMAL BRIEFING HERE
SO I'LL JUST OPEN IT UP
WELL, THANK YOU, LESLIE, FOR ALL YOUR WORK AND SPEED WITH WHICH YOU CAN ARTICULATE ALL THOSE ACCOMPLISHMENTS
AND THANK YOU, RYAN, FOR CARRYING THE MARITIME WATER ON THIS
I WOULD LIKE TO OPEN IT UP TO NOTING THE FACT THAT NEXT WEEK IS COP 26
AND SO I KNOW THE BINARY ADMINISTRATION IS HOPING TO HAVE SOMETHING NEW TO SHOW FOR ALL THE NATION'S EFFORTS
I'M VERY PROUD THAT WE HAVE SOMETHING TO SHOW LOCALLY, BUT LET ME ASK CLERK HART TO SEE IF MY COLLEAGUES HAVE ANY QUESTIONS FOR YOU
BEGINNING WITH COMMISSIONER BOWMAN, YOU ARE MUTED
ALL RIGHT
SOUNDS LIKE I'M NO LONGER MUTED
I DON'T KNOW THAT I HAVE ANY REAL QUESTIONS, I GUESS
LESLIE, YOU GUYS ARE DOING AMAZING WORK
IT'S A PRETTY DAUNTING TASK
I ABSOLUTELY APPRECIATE THAT WE'RE MAKING THIS EFFORT TO GET THERE A FULL DECADE EARLIER
I HOPE THAT WE CAN CONTINUE TO WHILE THAT'S A GREAT PORT WIDE GOAL, CONTINUE TO IDENTIFY OPPORTUNITIES IN OUR DIFFERENT SECTORS WHERE WE CAN ACHIEVE THOSE GOALS EVEN SOONER
ONE I WOULD CALL OUT MY PERENNIAL FAVORITES GETTING TO ZERO EMISSION DRYAGE TRUCKS, KNOWING THAT THE STATE OF CALIFORNIA HAS SET A GOAL FOR THAT FOR 2030 AND HOPING THAT WE CAN USE THAT OPPORTUNITY TO BE ABLE TO THAT CALIFORNIA IS DOING TO PIGGYBACK ON THEIR TECHNOLOGY, PIGGYBACK ON WHAT THEY'RE DOING FOR FINANCING AND THOSE SORTS OF THINGS
SO NOT A LOT OF QUESTIONS, JUST A LOT OF ENCOURAGEMENT THAT ANY OPPORTUNITIES YOU ALL SEE ACROSS THE BOARD TO MOVE THE NEEDLE SOONER, PLEASE BRING THEM FORWARD AGAIN
IT'S A REALLY DAUNTING TASK, AND YOU'RE DOING GREAT WORK, BUT IT TRULY IS THE SINGLE MOST PRESSING THING
WE HEAR THIS EVERY WEEK AND COMMISSION MEETINGS AND PEOPLE TESTIFY
WE ARE JUST BY NATURE OF WHAT WE DO BEING IN THE TRANSPORTATION SECTOR, MOVING EITHER PEOPLE, BOTH PEOPLE AND GOODS, VERY ENERGY DEPENDENT AND SO I THINK WE DO HAVE A SINCERE OBLIGATION TO DO WHATEVER WE CAN AS A PUBLIC ENTITY TO BE ABLE TO REDUCE THE EMISSIONS, BOTH OUR OWN FOOTPRINT AND THEN REALLY PASSIVE POLICIES THAT INCENTIVIZE MORE THAN INCENTIVIZE REALLY PUSH THE ENVELOPE FOR OUR INDUSTRY PARTNERS TO COME TO THE TABLE AND MAKE THE CHANGES THAT THEY NEED
AND THE LAST THING I'D ADD TO THAT IS WE HAD A DISCUSSION IN OUR CLIMATE AND SUSTAINABILITY COMMITTEE THE OTHER DAY ABOUT THE CRUISE INDUSTRY AND TALKING ABOUT STUDYING POLICIES AT THE PORT OF SEATTLE FOR THE CRUISE INDUSTRY
AND I WOULD SAY, IN MY OPINION, IN THAT SECTOR, ONE OF THE BEST WAYS WE CAN DO THAT IS TO GO TO THE STATE OF ALASKA AND PARTNER WITH THEM BECAUSE THEY'RE THE END GOAL
SO I GUESS WHERE I'M GOING WITH THIS IS THAT IF YOU COULD REALLY IDENTIFY IN THE DIFFERENT SECTORS, WHAT IS THE MOST SIGNIFICANT THING THAT WE COULD DO, THAT WOULD BE REALLY HELPFUL
BUT SETTING THESE BROADER GOALS IS A GREAT ROADMAP
AND THANK YOU FOR YOUR WORK
THANK YOU, COMMISSIONER
COMMISSIONER CALKINS, THANKS FOR THE PRESENTATION
JUST A COUPLE OF COMMENTS ON THE PRESENTATION
THE FIRST IS TO SEE HOW CLEARLY, AT LEAST WITHIN THE PORT OF SEATTLE EMISSIONS, WHAT AN ENORMOUS ROLE CRUISE EMISSIONS PLAY
AND SO WHERE WE OUGHT TO REALLY AS A PORT, WE'RE PUTTING EMPHASIS AND THAT'S NOT TO IGNORE WHAT'S GOING ON OVER AT THE SEAPORT ALLIANCE, BUT WE HAVE A MECHANISM OVER THERE WHERE WE'RE DOING THE SAME THING
AND I WOULD ENCOURAGE THOSE IN THE PUBLIC INTERESTED IN LEARNING MORE ABOUT THAT TO TUNE IN FOR THOSE MEETINGS AS WELL
AND SO WE'VE GOT THIS KIND OF DOUBLE ONUS THAT WE NEED TO REALLY BE ADDRESSING ON THE MARITIME SIDE
AND AS WE TALKED ABOUT IT, THE RECENT SCAC THAT IS A NEW AREA OF WORK
AND I'M REALLY PLEASED TO KNOW THAT WE'VE GOT SOME BUDGET DEVOTED TO REALLY EXPLORING THAT IN THE COMING YEAR
I ALSO WANT TO JUST TAKE A MOMENT TO GIVE CREDIT WHERE CREDIT IS DUE ON THIS
AND I THINK IT REALLY ORIGINATED FROM THE COMMUNITY
COMMUNITY MEMBERS CAME TO US IN PUBLIC COMMENT AND REQUEST FOR INDIVIDUAL MEETINGS THROUGH ENGAGEMENT IN VARIOUS COMMITTEES, IN BOARDS THAT WE PARTICIPATE IN EXTERNAL SETTINGS, LIKE THE K FOUR, C AND OTHERS TO SAY, WE GOT THE IPCC REPORT, WE GOT TO GO FASTER
THIS IS MORE URGENT THAN WE UNDERSTOOD EVEN JUST A FEW YEARS AGO AND REALLY LIT A FIRE AND THEY DID IT
THEY BROUGHT RECEIPTS, SO TO SPEAK
THEY CAME WITH REAL DATA TO DEMONSTRATE HOW CRITICALLY IMPORTANT IT IS
AND AS WE SAW EARLY THIS AFTERNOON OF PUBLIC COMMENT, THEY CLEARLY KNOW WHAT THEY'RE TALKING ABOUT
AND IT BEHOOVES US TO LISTEN TO THEM AS A RESULT OF THAT COMMUNITY ENGAGEMENT AND THAT EDUCATION THAT THEY PROVIDED US, INCLUDING INNOVATIVE IDEAS ON HOW TO ADDRESS IT
THEN I THINK FROM THAT COMMISSION ASKED STAFF, HEY, CAN YOU GUYS LOOK AT WHAT COULD BE DONE TO ACCELERATE THESE THINGS
AND IN SO MANY WAYS, I FEEL LIKE THAT JUST UNLOCKED WHAT THE STAFF WAS HOPING TO BE ABLE TO DO ANYWAY, BECAUSE THEY IMMEDIATELY JUMPED ON THAT INITIATIVE AND SAID, YEAH, ABSOLUTELY
GIVE US THE ABILITY TO DO THIS AND WE WILL DO IT
AND WE'RE EXCITED TO DO IT
AND THAT STARTED WITH BIZ LEVITT BEFORE SHE RETIRED
SANDY HAS BEEN A TREMENDOUS THE PASSING OF THE TIME TO SANDY HAS BEEN AMAZING
BUT SANDY WAS AT THE TABLE A YEAR AGO WHEN THIS FIRST CONVERSATION STARTED ON THE MARITIME SIDE, BUT WITHOUT A DOUBT THAT EXTRAORDINARY EXPERTISE WE HAVE IN HOUSE
AND I GENUINELY BELIEVE THE HEART AND PASSION FOR THIS WORK IS PUTTING US IN A GREAT POSITION TO BE ABLE TO EXECUTE ON IT
I'M EXCITED TO GET THIS DONE
AND THEN HONESTLY, TRUTH BE TOLD, I'M IMMEDIATELY GOING TO START THINKING ABOUT HOW WE ACCELERATE THESE TIMELINES AND WHAT WE CAN DO TO BE MORE AMBITIOUS
I THINK OFTEN ABOUT HISTORICAL PRECEDENTS WHERE THE PROBLEM SEEMED OVERWHELMING AND DAUNTING
I THINK ABOUT THIS SORT OF MID 20TH CENTURY CONCERN ABOUT FOOD SHORTAGES AND RAPID INCREASE IN GLOBAL POPULATION AND EVERY PROJECTION THAT HALF THE POPULATION IS GOING TO START BY THE END OF THE 20TH CENTURY
AND AS A RESULT OF BOTH GOOD POLICY AND GREAT INNOVATIONS WE WERE ABLE TO ADDRESS, BUT FOR LACK OF DISTRIBUTION IN CERTAIN PLACES, MOST MALNUTRITION
AND I THINK WE FACE A SIMILARLY DAUNTING BUT NOT INSURMOUNTABLE PROBLEM IN CLIMATE CHANGE
I AM NOT A PESSIMIST
I DO BELIEVE THAT WE CAN ACHIEVE THE GOALS THAT WE HAVE SET FORTH FOR US
AND IT TAKES LITTLE AGENCIES LIKE THE PORT OF SEATTLE, NOT JUST BIG GOVERNMENTS LIKE THE FEDERAL GOVERNMENT OR GLOBAL ENTITIES WORKING ON CLIMATE CHANGE, BUT IT TAKES US PLYING THE WAY AND DEMONSTRATING THAT IT CAN BE DONE AT A LOCAL LEVEL
SO TRULY CREDIT TO ALL THOSE COMMUNITY GROUPS AND VOICES FROM OUR COMMUNITY THAT CONTRIBUTED AND TO THE STAFF FOR GREAT WORK ON THIS
WE, AS COMMISSIONER CHO OF GET TO SIGN OUR NAME TO IT, BUT REALLY, YOU GUYS DESERVE ALL THE CREDIT
THANK YOU, COMMISSIONER
COMMISSIONER CHO
YEAH, I DO WANT TO GIVE A SHOUT OUT TO BIZ
PROBABLY NOT LISTENING IN HERE, BUT SHE'S A HUGE PART OF GETTING THE BALL STARTED HERE
I HOPE SHE'S ON VACATION SOMEWHERE
YEAH, PERMANENT VACATION, BUT ALSO THE TEAM, SANDY AND STEPHANIE AND EVERYONE ON THE TEAM
I JUST WANTED TO MAKE A FEW COMMENTS
I'M LOOKING AT THE SCOPE THREE EMISSIONS GRAPHS FOR BOTH AVIATION AND MARITIME
I'M WONDERING IF WE CAN GET AN EVEN FURTHER OR EVEN A NEXT LAYER OR MORE GRANULAR BREAKDOWN OF SOME OF THE BIGGER EMITTERS FOR THE MAYOR TIME SEEN CRUISING GREEN SHIPS
I'D LIKE TO SEE MAYBE MORE SPECIFICALLY, WHERE THOSE EMISSIONS ARE AND THEN ON THE AIRCRAFT RELATED AS WELL
IF WE CAN GET A MORE GRANULAR BREAKDOWN OF WHERE THOSE EMISSIONS ARE, BECAUSE I THINK THERE MIGHT BE SOME LOW HANGING FRUIT THERE
FOR INSTANCE, MY COLLEAGUE FRED LIKES TO TALK ABOUT THE TUGS THAT PULL AND PUSH THE PLANES OUT THAT COULD BE ELECTRIFIED
RIGHT
AND SO I'M WONDERING THERE'S THE BIG STUFF LIKE FUELS AND WHATNOT
BUT THERE'S ALSO LITTLE THINGS I THINK THAT MIGHT BE LOW HANGING FRUIT
AND SO I THINK FURTHER GRANULAR BREAKDOWN OF THOSE EMISSIONS MIGHT BE HELPFUL IN US IDENTIFYING SOME OF THE LOW HANGING FRUIT
AND THEN SECONDLY, I LOVE THE IDEA AND PART OF US ACCELERATING OUR TIMETABLE
I ALSO WANT TO MAKE SURE THAT WE'RE LEVERAGING SOME OF OUR OTHER ENTITIES, LIKE MARITIME BLUE TO BE PART OF THE INNOVATION OF THESE SOLUTIONS
RIGHT? NOT JUST GOING TO AND LOOKING FOR WHAT ALREADY EXISTS, BUT CONTRIBUTING TO THE RESEARCH AND DEVELOPMENT OF THE FUTURE OF TECH THAT MIGHT GET US THERE
RIGHT
AND I JUST SO HAPPEN TO HAVE TAKEN A TOUR OF A STARTUP CALLED FIRST MODE ON FRIDAY, AND THEY'VE BEEN WORKING ON A LOT OF HYDROGEN POWERED STUFF IN THE MINING INDUSTRY
AND IT MADE ME THINK, MAN, WE CAN PUT SOME OF THIS HYDROGEN POWERED FUEL CELLS IN OUR TUGBOATS, IN OUR TOP PICKS AND ANYTHING AND EVERYTHING THAT MIGHT BE MOTOR BY LNG
RIGHT NOW, I WANT US TO START THINKING ABOUT MAKING INVESTMENTS AND HELPING ACCELERATE IT COULD BE AS SIMPLE AS DONATING A RETIRED TOP PICK FROM ONE OF OUR SO THAT THEY CAN RETROFIT IT AND START EXPERIMENTING WITH WHETHER OR NOT IT'S POSSIBLE TO RETROFIT WITH HYDROGEN FUEL CELLS AND OR NOT
RIGHT
AND SO INSTEAD OF US MAYBE DISPOSING OF SOMETHING OR SCRAPPING IT, WE MIGHT THINK ABOUT DONATING IT TO RESEARCH AND STUFF LIKE THAT
SO I JUST WANT TO PLANT THAT SEED IN EVERYONE'S HEAD TO START THINKING ABOUT HOW CAN WE CONTRIBUTE TO THE RESEARCH AND DEVELOPMENT THAT WILL GET US TO THIS GOAL FASTER THAN 2040 AND 2030? QUITE FRANKLY
SO THOSE ARE MY COMMENTS
AND THEN THANK YOU, COMMISSIONER CHO
LET'S MOVE TO COMMISSIONER STEINBRUECK
I THINK SANDY WANTED TO END UP
OH, I'M SORRY, I DIDN'T SEE
I JUST WANTED TO MAKE A SMALL COMMENT ON THAT
AND OF COURSE, I APPRECIATE ALL THE COMMISSIONERS VERY DEDICATED SUPPORT TO THIS ISSUE
SO I THINK IN THE NEXT PRESENTATION ON THE MARITIME CLIMATE AND AIR ACTION PLAN, YOU WILL HEAR, AND WE'LL MAKE SURE TO COVER SOME OF THE WORK THAT WE'RE DOING ON THE POLICY LEVEL, THE PARTNERSHIPS WE HAVE WITH SEATTLE CITY LIGHT ON SOME HYDROGEN RESEARCH AND A NUMBER OF THE OTHER NEAR TERM STRATEGIES WE'RE DOING
ALSO IN THE PROPOSED BUDGET, WE HAVE REQUESTED A POSITION TO HELP US DIVE DEEP INTO THE DATA
TO YOUR POINT, COMMISSIONER CHO, TO HELP US TAKE A MUCH MORE GRANULAR LOOK AT THE EMISSIONS AND WHERE THEY OCCUR AND HAVE THAT INFORM OUR STRATEGY
SO I APPRECIATE YOUR COMMENT THERE
THERE'S ANOTHER HAND UP
JUST A REAL QUICK COMMENT
THANK YOU, COMMISSIONER CHO
I'LL JUST ADD TO THAT THAT WE DO HAVE SOME OF THAT GRANULAR INFORMATION, AND WE WILL FORWARD THAT TO YOU
AND WE CERTAINLY AGREE THAT WE ALSO HAVE A NUMBER OF INITIATIVES THAT ARE AIMED AT ELECTRIFYING OUR GROUND SUPPORT EQUIPMENT AT THE AIRPORT
AND YOU'RE RIGHT, WE NEED TO CONTINUE THAT WORK AND FINISH IT
WE'VE GOT MORE THAN HALF THE AIRPORT COMPLETED, AND WE JUST NEED TO FINISH THE REST OF IT AND PUT IN THOSE CHARGING STATIONS FOR OUR PARTNERS SO STRONGLY AGREE THAT WE NEED TO DO OUR WORK FIRST AND THEN THAT WILL HELP OTHERS DO THE RIGHT THING
AWESOME
THANK YOU
THANK YOU VERY MUCH
MOVING TO COMMISSIONER STEINBRUECK
OKAY
THANKS
TWO COMMENTS AND MAYBE A RHETORICAL QUESTION OR TWO HERE
FIRST OF ALL, GIVEN THAT WE ARE IN THE FINAL DAYS AND HOURS OF ADVANCING CLIMATE ARMAGEDDON, I THINK THE PORT OF SEATTLE IS VERY MUCH MOVING IN THE RIGHT DIRECTION
THE GOAL HAS BEEN SHARED BY ALL OF US TO LOOK AT EVERY POSSIBLE WAY TO ACCELERATE ACHIEVEMENT IN REDUCING CARBON EMISSIONS AND ULTIMATELY GETTING TO 100% CLEAN ENERGY
WE ARE MAKING GREAT STRIDES WITH REGARD TO OUR SCOPE ONE AND TWO, OUR OWN OPERATIONS
I THINK IT'S ALWAYS IMPORTANT IN PUBLIC MEETINGS LIKE THIS TO DEFINE WHAT WE MEAN
SCOPE ONE, TWO AND THREE, BECAUSE I DON'T THINK MOST PEOPLE HAVE A CLUE WHAT THOSE TERMS MEAN, BUT WHEN IT COMES TO PORT OPERATIONS, BUILDINGS, FACILITIES, GROUND TRANSPORTATION, ALL THE THINGS THAT WE HAVE DIRECT OR SEMI DIRECT CONTROL OVER
I DON'T THINK THERE'S ANOTHER PORT OF OUR SIZE AND COMPLEXITY IN NORTH AMERICA THAT IS DOING MORE AND MORE VOLUNTARILY TO DO EVERYTHING WITHIN OUR POWER AND RESOURCES AND ABILITY TO REDUCE AND ULTIMATELY ELIMINATE FOSSIL FUEL BURNING OPERATIONS
AND I THINK IT'S CREDIT TO THE DEDICATED STAFF THAT WE HAVE THAT IS, I FIND SECOND TO NONE ANYWHERE AS FAR AS OUR DETERMINATION AND THE LEADERSHIP OF THE PORT OF SEATTLE THAT HAS GUIDED US AND SUPPORTED IT AND DIRECTED IT FOR YEARS WELL BEFORE I JOINED THE PORT COMMISSION
SO THAT'S SORT OF MY GENERAL COMMENT
I CHALLENGE ANYONE TO FIND ANOTHER PORT ANYWHERE THAT'S DOING MORE VOLUNTARILY WITHOUT BEING FORCED TO UNDER REGULATIONS WITH UNFUNDED MANDATES
I'M A BIG FAN OF GRETA TUNEBURG
SHE'S CLEARLY A CHILD GENIUS AND FORETELLS A BLEAK FUTURE IF WE DON'T RISE TO THE CALLING HERE FOR URGENT ACTION THAT GOES BEYOND CRISIS BECAUSE THE CRISIS CAN SEEMINGLY BE OVERCOME BUT NOT REVERSED
AND I MEAN, WHAT WE HAVE IS AT SOME POINT IS GOING TO BECOME IRREVERSIBLE
AND SHE SAYS WE MUST CHANGE ALMOST EVERYTHING IN OUR CURRENT SOCIETIES
THE BIGGER YOUR CARBON FOOTPRINT, THE BIGGER YOUR MORAL DUTY, THE BIGGER YOUR PLATFORM, THE BIGGER YOUR RESPONSIBILITY
BUT SHE ALSO SAYS NO ONE IS TOO SMALL TO MAKE A DIFFERENCE
SO WHERE I'M GOING WITH THAT? AND I BELIEVE THAT VERY STRONGLY THAT THE PERSONAL CHOICES WE MAKE, INCLUDING AIR TRAVEL AND CONSUMER DEMAND AND CONSUMPTION, HAVE BY FAR THE LONGEST CONTRIBUTION TO FOSSIL FUEL BURNING CARBON EMISSIONS
NO ONE ENTITY IS RESPONSIBLE
WE ALL ARE
IT'S ALL OF OUR RESPONSIBILITY
BUT THAT DOESN'T GET TALKED ABOUT VERY MUCH IN THESE DISCUSSIONS
BUT I WANT TO TALK ABOUT SCOPE THREE, THE AREA THAT IS BY FAR THE MOST CHALLENGING, WHICH IS EMISSIONS GENERATED BY TRANSATLANTIC SHIPPERS VESSELS, CREWS OUTSIDE OF OUR PORT AIR TRAVEL
ALL WE REALLY HAVE THERE IS A COMMITMENT TO USE THE PORT AUTHORITY MORAL AUTHORITY, IF YOU WILL, AND OUR PARTNERSHIP WITH VARIOUS ORGANIZATIONS NATIONALLY AND INTERNATIONALLY THAT DO HAVE MORE OF AN INDUSTRY WIDE INFLUENCE
AND CERTAINLY WE DO
I'D LIKE TO KNOW, SINCE THE QUESTION KEEPS COMING UP, WHY DON'T WE JUST CURTAIL AIR TRAVEL, THE GROWTH IN AIR TRAVEL AT SEA TECH AIRPORT
AND I DON'T KNOW IF LANCE IS STILL ON BOARD HERE, BUT IT'S NOT EVEN SOMETHING WITHIN OUR POWER TO DO IS TO SAY, NO, WE'RE NOT TAKING ANY MORE PLANES FROM NOW ON, FOLKS, YOU'LL HAVE TO GO SOMEWHERE ELSE
LIKEWISE
ARE WE GOING TO TELL THE SHIPS THAT THEY CAN'T COME TO OUR PORT NOW UNTIL THEY GET CLEANED UP? WE PROBABLY HAVE MORE DISCRETION WITH CRUISE, AND NO DECISION HAS BEEN MADE TO BUILD A THIRD TERMINAL
THAT IS ABSOLUTE FICTION THAT HAS BEEN PUT OUT THERE
WE'VE STUDIED THE QUESTION WITH THE INTEREST THAT HAS BEEN WE'VE RECEIVED FROM THE INDUSTRY, BUT THERE'S BEEN NO COMMISSION LED OR STAFF LED DETERMINATION THAT WE'RE GOING TO BUILD A THIRD TERMINAL
WE STILL HAVE THAT OPTION, OF COURSE, BUT WE NEVER DECIDED THAT'S WHAT WE'RE GOING TO DO FOR ME WITH REGARD TO THE THIRD TERMINAL
IT DOES RAISE A LOT OF QUESTIONS, BUT IT'S NOT ENVIRONMENTAL, FINANCIAL, ENORMOUS COSTS INVOLVED AND THE SUSTAINABILITY OF INCREASING, EVER INCREASING GROWTH IN ALASKA CRUISE, WHICH I THINK THE STATE OF ALASKA WOULD HAVE SOMETHING TO SAY ABOUT AS WELL AND SOME OF THE LOCAL COMMUNITIES
BUT LET'S GET REALISTIC ABOUT THIS
BUT LET'S ALSO RECOMMIT AS TO WHAT WE CAN DO AND WHAT WE CAN'T DO AND ALSO JUST TO RAISE A QUESTION ABOUT PERSONAL RESPONSIBILITY, WHICH IS DRIVING THE DEMAND FOR ALL OF THESE POLLUTING SOURCES
BUT IF SOMEBODY SAYS, CAN A PORT LIKE OURS JUST SIMPLY STOP THE CLOCK AND SAY, NO MORE GROWTH? AND CAN WE STILL PURSUE VIGOROUSLY THE WAY WE ARE? THESE SCOPE THREE REDUCTIONS
IF WE JUST SAY WE'RE GOING TO DIVEST OURSELVES OF THESE POLLUTING INDUSTRIES
MR COMMISSION PRESIDENT, I DO SEE MS PRISCILLA HAS HER HAND UP, PLEASE
YES
THANK YOU
ARLEN PRISCILLA, DIRECTOR OF ENVIRONMENT AND SUSTAINABILITY AT THE AIRPORT
WE ARE NOT ALLOWED TO CURTAIL AIRCRAFT MOVEMENTS AT THE AIRPORT
IT WOULD BE IN VIOLATION OF FEDERAL LAW AS WELL AS IN VIOLATION OF OUR GRANT ASSURANCES
SO THAT'S A PRETTY CLEAR PROHIBITION AGAINST THAT ON BOTH COUNTS
THAT'S WHAT I THOUGHT
THANK YOU, COMMISSIONER STEINBRUECK
ARE THERE ANY OTHER COMMENTS FOR COMMISSIONER STEINBRUECK, OR SHALL WE MOVE ON? MR EXECUTIVE DIRECTOR? YES
COMMISSIONER STEINBRUECK, THANKS FOR LOSING
I THINK WE'RE GOING TO TALK MORE ABOUT THAT
BUT THE BIG PICTURE
WE'RE DEFINITELY THINK GLOBALLY, ACT LOCALLY, BUT IT'S ALSO BEING INVOLVED IN THOSE CONVERSATIONS AS A BIGGER SOLUTION AS WELL WITH LIKE MINDED PORTS AND NATIONS
AND SO WE ARE KEEPING THAT BIGGER PICTURE AND DRIVING ON ALL THOSE LEVELS BECAUSE WE NEED TO WORK AT ALL THE LEVELS
WE NEED TO WORK LOCALLY, REGIONALLY, NATIONALLY AND INTERNATIONALLY
AND THAT'S WHAT THE PLAN WITH THE STAFF IS DOING THAT
I THINK WE'RE GOING TO HEAR MORE ABOUT THAT
I THINK IN A BIT, I BELIEVE, BUT THAT'S OUR MANTRA AS MOVING FORWARD IS TO CONTINUE ON ALL THOSE FRONTS
AND LET ME JUST SAY THIS, AS LONG AS I'M TALKING IT'S CONTINUING LOOKING FOR THAT, THERE'S A LOT OF THINGS HAPPENING IN A LOT OF DIFFERENT PLACES AND BEING ADVISED AND BEING AWARE OF THAT AND CONTINUALLY LOOKING AND FOCUSED ON THIS WITH THAT IN MIND, I THINK YOU'RE ABSOLUTELY RIGHT
DIRECTOR METRUCK, THE BEST THING WE CAN DO IS TO PROVIDE THE LEADERSHIP, THE RESPONSIBLE ENVIRONMENTAL LEADERSHIP THAT THE PORT IS DOING EVERY SINGLE DAY AND IS 100% COMMITTED TO IN A GLOBAL ENVIRONMENT
THANK YOU, COMMISSIONER STEINBRUECK
THANK YOU
EXECUTIVE DIRECTOR METRUCK, COMMISSIONER FELLA, IT'S BACK TO YOU
THANK YOU
I, TOO, WOULD LIKE TO THANK OUR STEPS COMMITMENT TO THIS EFFORT AND THE LEADERSHIP OF EXECUTIVE METRUCK FOR REALLY EMPOWERING THEM TO EMBRACE THIS OBVIOUSLY MUTUALLY SHARED GOAL THROUGHOUT THE COMMISSION AND THE PORT
BUT IT'S REALLY THROUGH EXECUTIVE METRICS ENCOURAGEMENT AND SUPPORT FOR THIS EFFORT THAT MAKES IT ALL POSSIBLE
AND, OF COURSE, YOU HAVE TO HAVE THE TALENT IN HOUSE TO BE ABLE TO DO IT
BUT IT'S QUITE THE TEAM, AND I'M REALLY QUITE APPRECIATIVE OF IT
I HAD A COUPLE OF THOUGHTS
IT WAS AN INTERESTING COMMENT THAT WAS RAISED ABOUT THE RNG AT THE AIRPORT, AND AT YOUR POINT THAT WE HAVE A TEN YEAR CONTRACT AND WE'RE LOOKING TO REPOWER THE TERMINAL
BUT THE THOUGHT WAS TALKED ABOUT HEAT PUMPS, AND I KNOW THAT WE WERE DOING A DEEP ANALYSIS IN TERMS OF WHAT THE BUSES, WHETHER WE SHOULD DO ELECTRIC BUSES OR THE RNG BUSES
AND YOU DID THE WHOLE COST BENEFIT ANALYSIS IS ONE OF OUR SCREENING STUDIES
AND SO THAT CERTAINLY MADE SENSE AT THE TIME
I'M JUST WONDERING, DID WE EXPLORE THE HEAT PUMP IDEA FOR THE AIRPORT HVAC SYSTEM? WE'RE EXPLORING IT NOW
WE'RE WORKING, OF COURSE, WITH OUR IN HOUSE EXPERTS, AND WE HAVE TEAMS OF EXTERNAL EXPERTS, CONSULTANTS AND INCLUDING THE NATIONAL RENEWABLE ENERGY LABORATORY, IS ALSO HELPING US TO THINK ABOUT, OK, WHAT ARE OUR OPTIONS? THIS IS A VERY OLD SYSTEM THAT WE HAVE
WE NEED TO UPDATE IT
WHAT DOES THAT LOOK LIKE? AND WHAT'S THE BEST WAY TO DO THAT? SO WE'RE HOPING TO HAVE SOME PRELIMINARY RESULTS SOMETIME NEXT YEAR TO START TALKING ABOUT WHAT DOES THAT LOOK LIKE AND WHAT'S THE TIMELINE FOR IT AND WHAT ARE THE OPTIONS THAT ARE AVAILABLE TO US? I THINK THE GOOD NEWS IS THERE ARE A LOT OF OPTIONS THAT ARE AVAILABLE THAT HAVE BEEN TRIED IN OTHER PLACES AND IN OTHER AIRPORTS
WE CAN LEAN ON THEIR LEARNING, AND THEN WE WILL HAVE TO TAKE SOME RISKS BY TRYING SOME NEW THINGS
I THINK THE PURPOSE OF THE FRAMEWORK, THE SUSTAINABLE PROJECT FRAMEWORK, HELPS US TO KIND OF TRY SOME OF THOSE THINGS ON SOME OF THESE ISOLATED PROJECTS, BUT IT'S GOING TO HAVE TO TAKE A VILLAGE IN MANY WAYS TO MAKE SURE WE GET THE RIGHT ENERGY SYSTEM FOR THE AIRPORT
I APPRECIATE THAT
JUST A COUPLE OF OTHER THINGS
THE ANNOUNCEMENT THAT AMAZON AND IKEA AND I THINK IT WAS WHO ELSE? IT WAS UNILEVER
MICHELIN AND PATAGONIA ALL TALKING ABOUT WANTING TO GO TO ZERO MISSION SHIPPING WITH 2040
THIS GENERATED A LOT OF BUZZ, AND I THINK KUW IS DOING A STORY TODAY IF THEY'RE DROPPING THEIR EMISSIONS BY TEN YEARS, WHAT ARE YOU DOING? AND OH, BY THE WAY, WE ARE, TOO
THAT WAS KIND OF NICE TIMING
BUT THE IDEA THAT WHILE THIS IS THE RIGHT THING TO DO, I BELIEVE IN OUR CONTINUED EFFORT TO MARKET OURSELVES AS A GREEN GATEWAY WILL BE A COMPETITIVE ADVANTAGE THAT THESE AIRLINES AND OTHER COMPANIES ARE LOOKING TO DO BUSINESS IN WAYS THAT WE HELP THEM MEET THEIR SCOPE THREE GOALS
SO YOU'RE DOING THE RIGHT THING FOR MANY GOOD REASONS
AND I THINK ULTIMATELY WE WILL HAVE THAT LEG UP ON COMPETITION BECAUSE OF THAT
AND SO I SEE THIS AS ELEVATED SELF INTEREST AS WELL AS THE RIGHT THING TO DO
ONE OF THE OTHER QUESTIONS THAT WERE RAISED WAS THIS ISSUE ABOUT EXPOSURE HEALTH
OUR PORT COMMUNITIES ARE SOMEHOW DISPROPORTIONATELY IMPACTED BY PORT EMISSIONS BY DEATH RATES OR SOMETHING
AND I QUESTIONED THE ABILITY TO DISTINGUISH THE DIFFERENT REASONS FOR THOSE MORTALITY
AND I THINK THE SPEAKER SENT SOME LINK TO AN ICC REPORT
I DO KNOW THAT THIS CURRENT ISSUE OF THE NORTHWEST PORTS CLEAN AIR STRATEGY HAD SOME EXPOSURE ANALYSIS BUILT IN NOT JUST THE AMOUNT OF EMISSIONS, BUT SORT OF EXPOSURE WORK
AND HOPEFULLY MAYBE IT'S IN THE NEXT PRESENTATION
THAT WHERE WE'LL SEE SOME OF THAT HOW THOSE DATA ARE DISPLAYED
BUT DO YOU HAVE ANY ABILITY TO ADDRESS WHETHER OR NOT OUR PORT HAS SOME SPECIFICALLY HIGHER LEVEL OF IMPACT ON SURROUNDING COMMUNITIES THAN OTHER PORTS? I DID HEAR THAT COMMENT
SORRY, RYAN
DID YOU WANT TO COMMENT ON THAT? OKAY, RYAN
YEAH, I CAN ADDRESS THAT COMMENT
COMMISSIONER CHO, I BELIEVE THAT THE STUDY WAS BASED ON OUR PUGET SOUND EMISSIONS INVENTORY DATA FROM 2011
SO THE ICC STUDY LOOKED, I THINK THE LAST YEAR IT LOOKED AT WAS 2015
SO THE MOST RECENT YEAR THAT WE HAD DATA ON OUR DEFAULT PARTICULATE MATTER EMISSIONS WAS 2011
SINCE THEN, THE PORT AMERICAN EMISSIONS CONTROL AREA HAS COME INTO PLAY, AND THAT LED TO A SIGNIFICANT DECREASE IN DIESEL PARTICULATE MATTER
SO WE ACTUALLY SAW DPM EMISSIONS DECREASE OVER 80% FROM OUR BASELINE
SO THE STUDY WAS KIND OF BASED ON THE PORT SUBMISSIONS DATA
I CAN'T SPEAK TO EXACTLY IF IT INCLUDED THE NORTHWEST SEAPORT ALLIANCE AS WELL AS PORT OF SEATTLE
BUT IT WAS BASED ON BEFORE THAT MISSIONS CONTROL AREA WENT INTO PLAY
SO WE BELIEVE THAT THE NUMBERS WOULD BE DIFFERENT USING THE MORE RECENT DATA THAT WE HAVE
I'M NOT SURE EXACTLY HOW THAT STUDY COMPARES TO THE WSU STUDY THAT LOOKED AT HEALTH EXPOSURES
WELL, THANK YOU FOR THAT, RYAN
DOES THAT HELP IN ONE ASPECT, OBVIOUSLY, WHEN THE ECO CAME INTO PLACE, THAT WAS OUR SINGLE LARGEST DROP IN EMISSION REDUCTIONS, WHICH WE DID HELP ADVOCATE FOR
SO IT'S NOT JUST THAT WE GET CREDIT FOR THE SUN COMING UP
BUT THE OTHER ASPECT, THOUGH, IS WHICH REALLY, WHEN WE TALK ABOUT HUMAN HEALTH EXPOSURE, OUR GEOGRAPHY OF PUGET SOUND MEANS THAT THE AIRSHIP STARTS FROM CAPE FLATTERY, SO THEY'RE USING VESSEL EMISSION OCEAN GOLD VESSELS UNDERWAY FOR 110 MILES TRANSIT LIKE, NO, THE PORT IN THE COUNTRY HAS THAT LENGTH OF TRANSIT
AND SO, YEAH, WE'RE KILLING COMMUNITY, BUT THERE'S PROBABLY MORE SEA OTTERS FOR HALF THAT COAST THAN PEOPLE
I'M JUST SAYING THAT I'VE ALWAYS THOUGHT AND IT'S IMPORTANT BECAUSE THE COMMUNITIES DON'T CARE WHETHER IT'S A SEAPORT ALLIANCE OR A PORT OF SEATTLE EMISSION
IF IT'S A NORTH HARBOR EMISSION, IT'S THEIR EXPOSURE
BUT I'M KIND OF THINKING I WOULD LOVE TO SEE THE PORT OF SUPPORT CLEAN AIR STRATEGY LOOKING JUST OR THE INVENTORY LOOKING JUST AT ELLIOTT BAY
SO WHEN WE TAKE INITIATIVES OF VESSELS MANEUVERING WHEN WE'RE DEALING WITH TUG ASSISTANCE AND STUFF LIKE THAT VERSUS SHORE POWER, THINGS LIKE THAT
SO INITIATIVES THAT WE CAN TAKE THAT ARE BESIDES ADVOCATING FOR POLICIES, BUT THE THINGS THAT FOR US TO EVALUATE, WHERE SHOULD OUR INVESTMENTS BE MADE AND WHERE THE HEALTH EXPOSURE IS GREATEST
SO FOR BIG SHIPS IN THE HARBOR, THAT'S REALLY WHERE I WOULD LIKE TO SEE US HONE IN ON AS WE INFORM PORT INVESTMENTS GOING FORWARD
AND THAT JUST GETS BACK TO THIS LOCALLY EXPOSURES, BECAUSE CLEARLY, COMMUNITIES, EVEN LIKE SMALL EMISSIONS, LIKE TRUCKS, COMMUNITIES ARE HIGHLY EXPOSED TO THOSE SMALL EMISSIONS
AND THAT'S ONE OF THE THINGS THE INVENTORY SHOWED
EVEN CARGO HANDLING EQUIPMENT COMPARED TO OCEAN GOIING VESSELS ARE TINY, BUT THEY GO CLOSER TO THE COMMUNITIES, WHICH THIS THEN BRINGS UP TO ME, JUMPING TO AVIATION
WE HAVE THIS RESPONSIBLE TRAVELER PROGRAM, WHICH, LIKE THE PORT OF SEATTLE, IS ONE OF THE BEST KEPT SECRETS KNOWN TO MANKIND HERE
BUT ONE OF THE THINGS THAT I KNOW WE'RE RELUCTANT TO TALK ABOUT OFFSETS
BUT IF THE OFFSETS ARE LOCALLY DERIVED, AND I THINK UNITED JUST MADE SOME ANNOUNCEMENTS, THEY HAVE THE LARGEST LOCALLY DERIVED OFFSET PROGRAM IN THE COUNTRY
THAT AGAIN, IF THESE COMMUNITIES THAT ARE MOST CLOSE TO THE AIRPORT ARE, THEN WHERE WE'RE PLANTING THE TREES, PEOPLE SHOULD BE GIVEN A CHANCE
JUST LIKE MR STANFORD SAID, IF IT'S BASIC CONSUMPTION AND THINGS LIKE WE DO THAT HAVE IMPACTS, THOSE SAME PEOPLE SHOULD BE ABLE TO CONTRIBUTE TO BENEFITS
WE WOULD RATHER THEY DIDN'T CREATE THE EMISSIONS
BUT THEY ARE SPECIFICALLY IMPACTING COMMUNITIES IN THESE AREAS
AND SO I DON'T KNOW WHAT THE STATUS OF OUR RESPONSIBLE TRAVELER PROGRAM IS, WHETHER OR NOT WE ARE GOING TO BE PROMOTING IT ANY FURTHER, WHETHER WE HAVE PROGRAMS THAT ARE REALLY GEOGRAPHICALLY FOCUSED IN THOSE EFFORTS
AND ARE THERE THINGS THAT WE CAN DO TO ENHANCE ALL OF THE ABOVE? MR COMMISSION PRESIDENT LESLIE STANTON HAS HER HAND UP, PLEASE
THANK YOU
YEAH
SO JUST TO ANSWER THAT, YES, THAT PROGRAM IS CONTINUING
IT'S A GOOD TRAVELER PROGRAM AND THE PORT OF MONEY THAT IS ALLOCATED THROUGH THAT IS SHARED AMONG THE AIRPORTS THAT OFFER THAT PROGRAM
SO WE ARE ON THE GROUP OF FOLKS THAT DIRECT THAT MONEY AND WE DO ALLOCATE IT
CLERK HART, IS STEPHANIE MINE AVAILABLE? SHE'S GOT SOME COMMENTS TO ME SHE WOULD LIKE TO SHARE
SHE'S THE ONE THAT LEADS THAT
IS IT POSSIBLE? YES, I DO SEE HER ON THE LINE
OKAY
GO AHEAD, STEPH, I KNOW YOU WANT TO TALK ABOUT THIS
I KNOW YOU WANTED TO
HI
I'M STEPHANIE MINE, THE CLIMATE PROGRAM MANAGER FOR THE AIRPORT
AND JUST VERY BRIEFLY, THE GOOD TRAVELER PROGRAM
WE ACTUALLY HAVE A BRAND NEW SUBCOMMITTEE THAT IS WORKING ON THIS EXACT ISSUE THAT WE WANT TO BE ABLE TO HAVE THOSE WHO ARE MEMBERS OF THE GOOD TRAVELER PROGRAM BE ABLE TO SELECT SPECIFIC COMMUNITY PROJECTS THAT THEY WOULD LIKE TO FUND, AS OPPOSED TO JUST THE OFFSET PROGRAMS SO WE'RE WORKING ON THAT AND EVEN ALLOWING FOR A SUBSCRIPTION BASED PROGRAM WITHIN THE GOOD TRAVELERS SO THAT YOU CAN CONTINUALLY DIRECT YOUR MONEY TO THE TYPES OF PROGRAMS THAT OPERATE IN THE COMMUNITIES
OF COURSE, FIGURING OUT WHAT THE CRITERIA FOR ALL OF THAT WILL BE AS PART OF THE WORK WE'RE DOING
BUT THE INTEREST IN SOMETHING LIKE THAT HAS BEEN CALLED FOR AMONG MANY AIRPORTS
SO WE CONTINUE TO WORK ON THAT
WELL, THANK YOU, STEPHANIE, FOR YOUR ONGOING WORK ON THAT
I WOULD LIKE TO SPECIFICALLY LOOK AT TREE CANOPY AND ISSUES LIKE THIS FOR SEQUESTRATION, AS WELL AS AIR EMISSION GOALS AND THE FACT THAT WE HAVE IMPACTS ON TREES DIRECTLY IN OUR WORK
I THINK MAYBE TO FORESEE, BUT THANK YOU FOR THAT
AND PLEASE KEEP US IN TOUCH WITH HOW THAT'S GOING
AND I KNOW LIKE ALASKA AIRLINES HAS IF YOU DRINK, BRING A WATER BOTTLE ALONG, WE'LL PLANT THE TREE
I DON'T KNOW WHERE THOSE TREES ARE GETTING PLANTED
I WOULD LIKE TO KNOW THAT WE'RE DERIVING THE BENEFITS LOCALLY, BUT JUST MAYBE TO FORESHADOW TO PHASE US INTO THE NEXT CONVERSATION WITH REGARDS TO THIS ONGOING SORT OF ARTIFICIAL BIFURCATION WITH OUR EMISSIONS AND THAT OF THE SEAPORT ALLIANCE
THE PORT OF SEATTLE IS HALF THE SEAPORT ALLIANCE
OUR EMISSIONS AND THE PORT HARBOR EMISSIONS ARE HALF THE PORT OF SEATTLE
KING COUNTY CITIZENS ARE HELPING FUND THE INVESTMENTS IN THAT INFRASTRUCTURE
THE PORT OF SEATTLE IS A BENEFICIARY OF HALF THE REVENUES FROM THAT INFRASTRUCTURE
WE OWN HALF THOSE EMISSIONS
IN FACT, I WOULD SAY WE OWN ALL THE EMISSIONS IN THE PORT HARBOR, AND WHEREAS THE PORT OF TACOMA OWNS ALL THE EMISSIONS IN THE SOUTH HARBOR, AND THEY'RE APPROXIMATELY EQUIVALENT
SO LIKE I SAID, THE COMMUNITY DOESN'T REALLY CARE WHOSE EMISSIONS THEY ARE
AND SO I'M VERY ENCOURAGED THAT WE ARE LOOKING AT WAYS IN WHICH PORT OF SEATTLE, LIKE REAL ESTATE ASSETS, CAN HELP SUPPORT EFFICIENT OPERATIONS OF CONTAINER TERMINAL
BUT I DO WANT TO MAKE SURE THAT, LIKE, I WOULD LIKE TO SEE MORE OF VERY MUCH AN ELLIOTT BAY TYPE CONSENT CENTRIC ANALYSIS OF EMISSION REDUCTION FOCUS
I WOULD LIKE TO SEE IT DONE COORDINATED WITH THE ALLIANCE
SO AGAIN, WHEN WE'RE ADVOCATING AS COMMISSIONERS, WHERE SHOULD WE PUT THE BEST BANK OF THE BUCK LIKE COMMISSIONER CHO WAS TALKING ABOUT, THESE STRATEGIC LOOKS COLLECTIVELY NEED TO BE MADE TOGETHER, BECAUSE WHEN YOU'RE GOING TO SHOW THAT PICTURE IN THE NEXT PRESENTATION, THE PORT OF SEATTLE COMBINED IS A FRACTION OF WHAT THE SEAPORT ALLIANCE IS GENERATING BY EMISSIONS
SO ANYWAY, THANK YOU FOR CONTINUING TO KEEP ON TOP OF THIS AND STIMULATING ALL THESE CONVERSATIONS AND MAKING US RUN WAY TOO LATE
BUT I WILL STOP TALKING NOW UNLESS YOU HAVE ANY CONCLUDING COMMENTS OR WILL WE JUST JUMP INTO OUR NEXT PRESENTATION? NO, I JUST THINK THAT ALL THE COMMISSIONERS AND EXECUTIVE DIRECTOR METRUCK FOR YOUR LEADERSHIP AND SUPPORT ON THIS, AND WE LOOK FORWARD TO PUSHING HARD AND PARTNERING TO IMPLEMENT THESE NEW GOALS
WELL, THANK YOU AGAIN
SO WITH THAT SAID, THERE IS NO VOTE ON THIS MATTER, THIS SORT OF JUST TEASE UP OUR NEXT CONVERSATION
AND SO LET'S SEE HERE
THAT'S JUST FOR INFORMATION ONLY
OKAY, SO WE HAVE GONE THROUGH ALL THE COMMISSIONERS
PLEASE READ THE NEXT ITEM INTO THE RECORD CLERK HART, AND WE'LL THEN HEAR FROM INTERIM COMMISSION CHIEF OF STAFF AARON PRITCHARD TO INTRODUCE THE ITEM
THANK YOU
THIS IS AGENDA ITEM TEN D ORDER NUMBER 2021
TEN
AN ORDER ENDORSING THE EXECUTIVE DIRECTOR'S ACCELERATION OF THE CARBON EMISSION REDUCTION TARGETS AT THE PORT OF SEATTLE
OKAY, SO COMMISSIONERS, PLEASE UNMUTE YOURSELF FOR QUESTIONS AND COMMENTS WITH STAFF AFTER THE PRESENTATION
THANK YOU, COMMISSION PRESIDENT FELLEMAN, COMMISSIONER CHO, EXECUTIVE DIRECTORS, THIS IS AARON PRITCHARD, THE INTERIM CHIEF STAFF OF THE COMMISSION
I WAS REALLY INSPIRING TO HEAR ALL OF YOUR COMMENTS ON COMBATING CLIMATE CHANGE
THE WORK THIS COMMISSION IN PARTICULAR HAS DONE TO CREATE POLICIES AROUND THE SUSTAINABLE EVALUATION FRAMEWORK AND TO SUPPORT DEVELOPMENT OF SUSTAINABLE AVIATION FUELS AND MUNICIPAL SOLID WASTE IS A REAL PROGRESS IN A GLOBAL BATTLE
AND AS YOU'VE SEEN TODAY, THE PORT IS MAKING STRONG PROGRESS TOWARDS OUR REDUCTION TARGETS, PARTICULARLY DUE TO THE PURCHASE OF RENEWABLE NATURAL GAS, TO HEAT SEAT AND TO FUEL SHUTTLE BUSES
SOME SIGNIFICANT EMISSION REDUCTIONS HAVE ALSO BEEN ACHIEVED IN THE PORT'S MARITIME OPERATIONS, DUE IN LARGE PART TO INTERNATIONAL NATIONAL MARITIME REGULATIONS OF FUEL QUALITY, INCREASED SHORE POWERED BY CREWS AND INNOVATIONS IN VESSEL AND EQUIPMENT EFFICIENCY
THIS ORDER DEMONSTRATES THAT THE COMMISSION IS FULLY SUPPORTIVE OF THE EXECUTIVE DIRECTOR'S RECOMMENDATION TO UPDATE THE CENTURY AGENDA OBJECTIVES AND TARGETS TO BE A NET ZERO OR BETTER ON SCOPE ONE AND TWO EMISSIONS BY 2040 AND CARBON NEUTRAL OR BETTER ON SCOPE THREE EMISSIONS BY 2050
THIS CHANGE TO OUR EMISSION REDUCTION TARGETS SINCE A CLEAR MARKET SIGNAL TO INDUSTRY AND OTHER PORTS TO PARTNER WITH US IN THE TRANSITION TO CLEAN FLUID FUELS
I'LL GO AHEAD AND READ THE TEXT OF THE ORDER AND TURN IT BACK OVER TO COMMISSION TO RECOGNIZE THE URGENCY OF ACTION NEEDED TO ADDRESS CLIMATE CHANGE
THE PORT COMMISSION HEREBY FORMALLY ENDORSES THE EXECUTIVE DIRECTORS TO EXECUTIVE DIRECTOR TO UPDATE THE PORT OF SEATTLE'S CENTURY AGENDA GREENHOUSE GAS REDUCTION TARGETS TO THE FOLLOWING SCOPE ONE AND TWO, WHICH REPORT DIRECTLY AND INDIRECTLY CONTROLLED EMISSIONS 15% BELOW 2005 LEVELS BY 2020, 50% BY 2005 LEVELS BY 2030 AND NET ZERO OR BETTER BY 2040
OUR SCOPE THREE, WHICH IS PORT INFLUENCED EMISSIONS, IS 50% BELOW 2007 LEVELS BY 2030 AND CARBON NEUTRAL OR BETTER BY 2050
THAT CONCLUDES MY PRESENTATION FOR THE DAY AND I'LL TURN IT BACK OVER TO COMMISSION PRESIDENT
THANK YOU VERY MUCH
IS THERE A MOTION IN A SECOND FOR APPROVAL OF NUMBER ORDER NUMBER 2021? MR COMMISSION PRESIDENT, WE'LL GO AHEAD
ACTUALLY, WE CAN TAKE THE MOTION NOW
I JUST WANT TO KNOW IF WE HAVE QUESTIONS
RIGHT
LET'S JUST TAKE THE MOTION AND THEN WE'LL HAVE A CONVERSATION
PERFECT
THERE IS A MOTION ON THE FLOOR
DO WE HAVE A SECOND? GREAT
SO THE MOTION HAS BEEN MADE IN SECONDED CLERK HART, WILL YOU PLEASE CALL THE ROLL? YES
WE'LL TAKE ROLE FOR QUESTIONS AND COMMENTS, AND THEN WE'LL TAKE A ROLL FOR THE VOTE
SO COMMISSIONER BOWMAN FOR ANY QUESTIONS? COMMENTS
I JUST WOULD LOVE TO HEAR AGAIN A LITTLE BIT MORE FROM THE STAFF ABOUT THE KEY OPPORTUNITIES THEY SEE FOR REDUCING SCOPE THREE EMISSIONS ON CRUISE
I APPRECIATE ALL THE PARTNERSHIPS WITH THE OUTSIDE ORGANIZATIONS, BUT ANYTHING ELSE THAT YOU WANTED TO ADD TO THIS CONVERSATION, IT IS THE ONE THAT THE COMMUNITY SEEMS TO SPEND THE MOST HAS THE MOST INTEREST
DO YOU WANT ME TO ADDRESS THAT QUESTION NOW? I'LL TAKE IT TO YOU
SANDY, PLEASE
YES
THANKS
OKAY
AND THEN FEEL FREE TO
SO I THINK THE APPROACH REALLY IS PROBABLY TWOFOLD
ONE IS TO ENGAGE IN NATIONAL AND INTERNATIONAL POLICY ON ALTERNATIVE MARITIME FUELS
THIS IS I THINK EVERYONE KNOWS THE IMO INTERNATIONAL MARITIME ORGANIZATION HAS PLAYED A LARGE ROLE IN MANAGING SHIPPING
AND SO WORKING WITH OUR NATIONAL REPRESENTATIVES AT THE INTERNATIONAL LEVEL, WE ARE HOPING TO PROVIDE SOME INFLUENCE, LIKE WE HAVE IN OTHER POLICIES TO MOVE THAT INDUSTRY
WE ALSO HAVE JOINED THE GETTING TO ZERO COALITION, WHICH IS A GLOBAL ALLIANCE WITH THE AIM TO PUT A ZERO MISSION SHIP IN PRODUCTION BY 2030
AND SO THAT'S ANOTHER AREA WHERE WE'RE GOING TO ENGAGE AND FIGURE OUT HOW WE SUPPORT CAN LEND A HAND AND SUPPORT THAT MOVEMENT
I THINK COMMISSIONER CHO REFERENCED MARITIME BLUE
WE DO PARTNER WITH MARITIME BLUE, AND WE'LL CONTINUE TO PARTNER ON INNOVATIONS AND FIGURING OUT WHERE WE CAN SUPPORT THE TECHNOLOGY DEVELOPMENT THAT'S NECESSARY
AND I THINK FINALLY, WE WORK DIRECTLY WITH THE CRUISE LINES
OUR MARITIME OPERATIONS HAS VERY STRONG RELATIONSHIPS WITH OUR INDIVIDUAL CRUISE LINES, AND WE CAN'T DO THIS WITHOUT THEM
SO WE WILL CONTINUE TO FORGE TO THE NECESSARY PARTNERSHIPS TO WORK WITH OUR CRUISE LINES TO REACH OUR GOALS
OKAY, SANDY, THANK YOU FOR THAT
AND IF I COULD JUST ADD ONE THAT I'D ASK YOU TO ALL CONSIDER AS I BROUGHT UP IN THE CLIMATE COMMITTEE THE OTHER DAY IS A REALLY SPECIFIC PLAN OF WORKING WITH ELECTED OFFICIALS IN ALASKA ON THEIR POLICIES REGARDING ZERO MISSIONS CRUISING, OBVIOUSLY, AS I MENTIONED IN THAT COMMITTEE MEETING, BUT NOT TOO MANY MEMBERS OF THE PUBLIC WERE THERE
ALASKA IS THE ULTIMATE DESTINATION
AND SO WE COULD HAVE A ZERO MISSION POLICY AT THE PORT OF SEATTLE
BUT IF ALASKA DOESN'T HAVE IT, THAT'S NOT REALLY GOING TO DO A LOT
IT'LL JUST MEAN THE VESSELS WILL GO TO VANCOUVER, BRITISH COLUMBIA, AND BYPASS SEATTLE ALTOGETHER
SO I WOULD JUST ASK, IN TERMS OF THE WORK PLAN THAT YOU ADD IN SOME SORT OF INVESTIGATE WHAT WE CAN DO WITH ELECTED OFFICIALS IN SEATTLE TO HAVE A JOINT POLICY, BECAUSE I THINK THAT REALLY WOULD BE ONE OF THE BEST WAYS LOCALLY TO MOVE THE NEEDLE ON THE CRUISE INDUSTRY
THANK YOU
THANK YOU
AND THEN I DO SEE EXECUTIVE DIRECTOR METRUCK, AND I HAVE DIRECTOR JOAN STEFANS AS WELL
YEAH
I WAS JUST GOING TO JUMP IN AND TURN IT OVER TO STEPHANIE JONES-STEBBINS, BECAUSE THANKS, COMMISSIONER BOWMAN
THAT IS ONE OF THE THINGS WE'VE BEEN DISCUSSING, BECAUSE IT'S A CLOSED SYSTEM WITH THE PORT OF ALASKA
AND ANYTIME YOU'RE LOOKING AT SHIPPING, YOU HAVE, ESPECIALLY OCEANIC SHIPPING, WHICH I CONSIDER ALASKAN CRUISER
YOU GOT TO LOOK AT THE SYSTEM, RIGHT
SO YOU NEED EVERYTHING INVOLVED IN THOSE CONVERSATIONS
AND WE HAVE BEEN TALKING ABOUT THAT
AND I'LL TURN IT OVER TO MANAGING DIRECTOR FOR MARITIME STEPHANIE JONES-STEBBINS
YEAH
THANK YOU, STEVEN
THANK YOU VERY MUCH, COMMISSIONER BOWMAN, FOR THAT QUESTION
ONE THING I WANT TO REITERATE IS THAT IT IS A REALLY KEY PART OF OUR OVERALL STRATEGY, OUR BUSINESS STRATEGY
SO INCORPORATING SUSTAINABILITY AND OUR RELATIONSHIPS WITH THE CRUISE LINES IN OUR BUSINESS AGREEMENTS AND BUSINESS RELATIONSHIPS, AND, FOR INSTANCE, APPROACHING THEM NOT ONLY FROM THEIR ENVIRONMENTAL STAFF, BUT ALSO TALKING TO EXECUTIVES THAT ARE IN CHARGE OF BUSINESS DECISIONS
IT'S A REALLY KEY PART OF OUR CREW STRATEGY GOING FORWARD
AND I WOULD ALSO APPRECIATE THE REFERENCE TO ALASKA
WE HAVE A REAL OPPORTUNITY HERE TO BUILD ON THE RELATIONSHIPS WE FORMED DURING COVID
WE REALLY WORKED CLOSELY WITH THEM IN TERMS OF TALKING ABOUT COVID PROTOCOLS, COMPARING NOTES ABOUT WHERE WE WERE, OUR RESPECTIVE COMMUNITIES ARE
SO WE BUILT THOSE RELATIONSHIPS, AND IT'S A GREAT OPPORTUNITY TO LEVERAGE THOSE ON ENVIRONMENTAL EFFORTS AS WELL
BUT I WILL TELL YOU FROM MY PERSPECTIVE
SUSTAINABILITY IS A REALLY KEY PART OF OUR OVERALL BUSINESS SUCCESS AND INCORPORATING THAT IS, I THINK, REALLY FUNDAMENTAL TO OUR FUTURE PLAN
SO THANK YOU
THANK YOU
AND THEN WE'LL MOVE TO COMMISSIONER CALKINS QUESTIONS OR COMMENTS ON THIS ITEM
I DON'T THINK I HAVE ANY ADDITIONAL COMMENTS OVER WHAT I SHARED EARLIER IN THE PREVIOUS ITEM, AND I'M GENERALLY SUPPORTIVE OF THE SENTIMENT SHARED BY COMMISSIONER BOWMAN AND STEVE ABOUT MAKING SURE THAT THIS IS A COLLABORATION BECAUSE I THINK THAT'S JUST GOING TO MAKE IT EFFECTIVE
AND I ONLY ADD ONE ADDITIONAL PARTNER TO THAT, WHICH WOULD BE THE TRAVEL NATIONS UP AND DOWN THE WEST COAST THAT HAVE BOTH PROVEN TO BE EXTRAORDINARY STEWARDS
BUT ALSO, AS WE'VE SEEN WITH AN INNOVATIVE ALASKA CRUISE PORT, HAVE FOUND WAYS TO LESSEN THE IMPACT ON THE ALASKA ECOSYSTEM AND COMMUNITIES OF CRUISING AND SORT OF DERIVE THE BEST BENEFITS FROM IT WITHOUT AS MANY NEGATIVE IMPACTS
AND SO I THINK THEY'RE GOING TO BE A CRUCIAL PARTNER AT THE TABLE FOR THIS DISCUSSION, TOO
THANK YOU, COMMISSIONER
EXECUTIVE DIRECTOR METRUCK
I STILL SEE YOUR HAND UP
WAS THAT LEFTOVER FROM BEFORE OR DID YOU HAVE AN ADDITIONAL COMMENT? IT'S A REMNANT
THANK YOU
THANK YOU, COMMISSIONER CHO
I DON'T THINK I HAVE ANY ADDITIONAL ANYTHING ELSE TO ADD
THANKS
THANK YOU, COMMISSIONER COMMISSIONER STEINBRUECK
I'M GOOD, THANKS
THANK YOU, COMMISSIONER FELLEMAN, I JUST WANT TO BE HONESTLY SUPPORTIVE OF THIS MOTION, AND I KNOW THAT WE'RE NOT TWISTING EXECUTIVE METRUCK ARMED
THIS IS SOMETHING THAT HIS LEADERSHIP HAS SHOWN VERY MUCH THE INCLINATION TO DO
REGARDLESS
I JUST FOLLOWED UP ON COMMISSIONER BOWMAN'S CALL FOR WORKING WITH ALASKA, AND I KNOW THAT COINCIDENTALLY, THAT BECAUSE OF THE LEADERSHIP THAT US, OUR VERY OWN STEPHANIE JONES-STEBBINS HAS BEEN WORKING WITH THE ALASKA SITUATION
WE HAVE A GREAT OPENING TO DO THAT
BUT ONE OF THE THINGS IN LIKE HAVING BEEN TO DONE CRUISE WORK IN ALASKA AS WELL AS RECENTLY BEEN TO NORWAY
ONE OF THE THINGS THAT'S REALLY KEY ABOUT THOSE DESTINATIONS IS THAT THE EMISSIONS FROM CRUISE SHIPS ARE MUCH MORE PREVALENT IN A FJORD, AND THAT THE THE EMISSION EXHAUST LINGERS
AND SO THE VERY REASON PEOPLE GO TO THESE PRISTINE PLACES IS VISUALLY DESPOILED BY THE PRESENCE OF THE VESSEL
AND SO ALASKA, LIKE TRACY ARM OR PLACES LIKE THIS ARE VERY VULNERABLE TO THE VERY SAME SORT OF THINGS WE'RE SEEING IN THE NORWEGIAN FJORDS
SO I VERY MUCH DO BELIEVE THAT ALASKA WILL BE A KEY PARTNER IN PRESERVING THE VALUE OF THE NATURE OF THAT ENVIRONMENTAL EXPERIENCE
I ALSO JUST WANT TO NOTE THAT THERE'S VARIOUS OPERATIONAL THINGS A VESSEL CAN DO TO REDUCE ITS CARBON FOOTPRINT WITH ITS OWN EXISTING FUEL AND HULL AND ALL THAT OTHER GOOD STUFF AND SLOW STEAMING IS ONE OF THE MOST OFTEN EXERTED ONES
AND RIGHT NOW IT JUST SO HAPPENS THAT BECAUSE OF THE PORT CONGESTION THAT'S GOING ON, MORE AND MORE EFFORTS BEING PUT ON TRYING TO MAKE APPOINTMENTS FOR ANCHORAGES AND OR TERMINAL SPACE, AND SO YOU CAN SORT OF TIME YOUR ARRIVAL AT A SLOWER PACE ACROSS THE PACIFIC, ARRIVING WHEN YOUR SPACE IS AVAILABLE
AND THERE'S THIS EXTRAORDINARY AMOUNT OF FUEL SAVINGS ASSOCIATED WITH SLOW STEAMING, IF YOU FIND THE RIGHT SPEED
AND ALSO THERE'S A CON COMMIT AND BENEFIT TO NOISE EMISSIONS
SO, LIKE A DECIBEL OR NOT
SO I JUST WOULD THINK THAT PERHAPS WE COULD ALSO LOOK AT INCENTIVIZING OPERATIONAL THINGS
OBVIOUSLY, THE ECHO PROGRAM IN CANADA HAS BEEN DOING THAT FOR NOISE SPECIFIC OPERATIONS THAT HAVE BEEN GETTING AN OVER 80% PARTICIPATION
BUT THERE'S ALSO THIS ASSOCIATED EMISSION BENEFIT, JUST TO NOTE THAT THIS COULD BE A NEAR TERM FOCUS OF THESE INITIATIVES
ALL RIGHT
SO HAVING SAID THAT, AND ARE THERE ANY OTHER FURTHER QUESTIONS, I CAN
YEAH
I WAS JUST REMINDED THANK YOU ABOUT MY REQUEST TO TRAVEL TO ALASKA TO THE ANNUAL CHAMBER POLICY FORUM, AND IT'S IN EARLY DECEMBER, THE 9TH TO THE 12TH, I THINK
AND I'VE DONE THIS FOR THE LAST COUPLE OF YEARS, AS SOME OF YOU KNOW, AND IT'S ALWAYS BEEN ENRICHING EXPERIENCE, TO SAY THE LEAST
ALASKA IS A VERY SMALL POPULATION IN A VERY LARGE LAND WITH TREMENDOUS RESOURCES, AS WE KNOW
AND IT'S A DIFFERENT KIND OF A POLITICAL CULTURE THERE AS WELL
BUT IT SEEMS TO ME THERE'S AN OPPORTUNITY HERE NOT JUST TO CARRY TO DO THE CUSTOMER RELATIONS, WHICH IS LARGELY WHAT I'VE BEEN DOING WITH OUR MARITIME AND SHIPPING CUSTOMERS IN ALASKA AND THE PORT OF ALASKA AS WELL IN ANCHORAGE, BUT TO ALSO CARRY THE ENVIRONMENTAL MESSAGE TO THOSE WHO ARE WILLING TO LISTEN
I THINK SOME OF THE NATIVE CORPORATIONS CERTAINLY ARE AND OTHER INTERESTS THERE, BESIDES THE MORE SINGULAR KIND OF BUSINESS INTERESTS THAT ARE OFTEN WHAT IS PROMINENT AT THESE POLICY FORUMS SO I JUST WANT TO PUT THAT OUT THERE, AND I THINK INVITE ANYBODY ELSE WHO'S INTERESTED TO LOOK INTO THE POSSIBILITY OF SOME MEETINGS AND OPPORTUNITIES BOTH IN MARITIME AND CRUISE WHILE IN ANCHORAGE, THE FORUM IS VERY NEAR ANCHORAGE, IN A SKI RESORT LODGE THERE
IT'S NOT FAR, SO IT'S EASY ACCESS TO THE CITY OF ANCHORAGE
SO I JUST WANTED TO PUT THAT OUT THERE
THANK YOU, COMMISSIONER CHO
BE A GOOD OPPORTUNITY TO PIGGYBACK ON THAT OPPORTUNITY
UNFORTUNATELY, IT'S NOT DURING THE CRUISE SEASON, BUT WE'LL TAKE THAT UP AT ANOTHER TIME
IF THERE'S NO FURTHER QUESTIONS, CAN WE CALL THE ROLL? YES
THERE IS A MOTION ON THE FLOOR
SO FOR THE VOTE BEGINNING WITH COMMISSIONER BOWMAN
AYE
THANK YOU, COMMISSIONER CHO
AYE
THANK YOU, COMMISSIONER CHO
AYE.
THANK YOU, COMMISSIONER STEINBRUECK
YES
THANK YOU, COMMISSIONER FELLEMAN
AYE
THANK YOU
YOU HAVE FIVE YESSES AND ZERO NOS FOR THIS ITEM
YES
I CAN COUNT THE MOTION PASSES
SO THANK YOU VERY MUCH ALL FOR THAT PRESENTATION AND FOR YOUR ONGOING LEADERSHIP IN THIS REGARD
SO, CLERK HART, WOULD YOU PLEASE READ THE NEXT ITEM INTO THE RECORD AND WE'LL THEN HEAR FROM EXECUTIVE METRUCK TO INTRODUCE IT? YES
BEFORE I READ IT INTO THE RECORD
I JUST WANT TO NOTE THAT WE ARE ABOUT AN HOUR AND 15 MINUTES OVER ESTIMATE FOR THIS MEETING SO FAR
SO WE WILL THEN READ IN ITEM TEN E INTO THE RECORD
THIS IS RESOLUTION NUMBER 3792, INTRODUCTION OF RESOLUTION TO ADOPT CHARTING OF COURSE TO ZERO PORT OF SEATTLE'S MARITIME CLIMATE AND AIR ACTION PLAN
THANK YOU
THESE ARE GREAT CONVERSATIONS, SO APPRECIATE YOUR LEADERSHIP ON THESE COMMISSIONERS
NEXT UP, YOU'LL ALSO HEAR THE FIRST READING OF THE RESOLUTION TO ADOPT THE PORT OF SEATTLE'S FIRST EVER MARITIME CLIMATE AND AIR ACTION PLAN
THIS PLAN CHARTS THE COURSE FOR US TO REDUCE MARITIME EMISSIONS BY 50% BY 2030 AND ACHIEVE OUR 2050 DECARBONIZATION GOALS AND IMPLEMENTS THE RECENTLY ADOPTED NORTHWEST PORTS CLEAN AIR STRATEGY
THE PORT CONDUCTED BROAD PUBLIC INPUT IN THE PLAN REFLECTS THE PORT'S COMMITMENTS TO OUR NEAR PORT COMMUNITIES, TO ENVIRONMENTAL STEWARDSHIP AND AN EQUITABLE MARITIME TRANSITION AWAY FROM FOSSIL FUELS BY BUILDING NEW PARTNERSHIPS AROUND JOINT CLIMATE AND NEAR ACTION, USING RENEWABLE FUELS AT OUR AIRPORT AND IN OUR PORT VEHICLES, AND BY SIGNING UP TO TAKE GLOBAL SCALE ACTION
BY JOINING THE GETTING TO ZERO COALITION, WE'RE TAKING CLIMATE CHANGE SERIOUSLY AND MAKING BIG STEPS FORWARD IN OUR EFFORTS TO MAKE THE PORT OF SEATTLE THE GREENEST, MOST ENERGY EFFICIENT PORT IN NORTH AMERICA
AND CONTINUING ON THE PRESENTERS THAT WE HAVE PREVIOUSLY SANDRA KILLROY, RYAN CHILD AND THEN ADDING IS ALEX ADAMS, SENIOR MANAGER, ENVIRONMENTAL PROGRAMS IN MARITIME
SO WITH THAT, I'LL TURN IT OVER TO SANDY TO KICK US OFF
YEAH
THANK YOU
EXECUTIVE DIRECTOR SO, BUILDING ON THIS LAST CONVERSATION, I AM VERY EXCITED AND HONORED TO BE INTRODUCING THE FIRST READING OF THE PORT OF SEATTLE'S ROADMAP TO DECARBONIZE OUR MARITIME OPERATIONS
THERE'S A LOT OF TALK ABOUT THAT IN PUBLIC COMMENT AND THEN THE LAST AGENDA ITEM
AND I THINK WE'LL SHARE SOME DETAILS WITH YOU RIGHT NOW
THE CHARTING OUR COURSE TO ZERO, WHICH IS THE PORT OF SEATTLE'S MARITIME CLIMATE AND THEIR ACTION PLAN, RESPONDS TO THE URGENCY IN ADDRESSING HARMFUL POLLUTANTS THAT AFFECT OUR LOCAL COMMUNITY AND THE IMPACT OF GREENHOUSE GAS EMISSIONS GLOBALLY
AS WE JUST DISCUSSED, THE PORT HAS SET A VISION TO DECARBONIZE OUR OPERATIONS, AND SO THE CHARTING THE COURSE TO ZERO PROVIDES THE STRATEGIES AND TANGIBLE ACTIONS THAT THE PORT WILL TAKE TO ACHIEVE THAT VISION
WE ARE ALREADY HEADING IN THE RIGHT DIRECTION, AND THIS PLAN CERTAINLY BUILDS ON OUR PAST SUCCESSES AND INVESTMENTS IN SHORE POWER AND SOLAR AND BUILDING ENERGY
EFFICIENCIES EXECUTIVE DIRECTOR JUST MENTIONED THE EXTENSIVE PUBLIC ENGAGEMENT THAT WE DID ON THIS PLAN, AND I DO WANT TO THANK THE COMMUNITY, INCLUDING MANY OF WHOM SPOKE AT THE BEGINNING OF THE MEETING, FOR THEIR TIME AND EFFORT TO WORK WITH US
THE ACTIONS WE IMPLEMENT THROUGH THIS PLAN WILL ENSURE THAT THE PORT IS NOT ONLY DOING ITS PART TO ADDRESS THE HEALTH INEQUITIES IN OUR COMMUNITY BUT ALSO SPURRING INDUSTRY AND OTHERS TO FOLLOW SUIT
SO IN THAT VEIN, WE DO LOOK FORWARD TO CONTINUING TO STRENGTHEN OUR PARTNERSHIPS AMONG GOVERNMENTS, WHICH WILL BE CRITICAL BUSINESSES, THE COMMUNITY AND NONPROFITS TO ADVANCE THE TECHNOLOGY AND THE NECESSARY INFRASTRUCTURE
I WANT TO THANK AGAIN PORT LEADERSHIP FOR YOUR VISION AND SUPPORT THAT DROVE THIS WORK AND EXTEND THANK YOU AGAIN TO THE MARITIME ENVIRONMENTAL STAFF WHO ARE BRINGING FORWARD A ROBUST AND STRATEGIC PLAN OF ACTION
AND SO NOW I WILL TURN IT TO ALEX ADAMS HE'S WITH OUR MARITIME ENVIRONMENTAL TEAM, AND HE'LL KICK OFF THE PRESENTATION
WELL, THANK YOU, SANDY AND CLARK, IF WE COULD PULL UP THE PRESENTATION, PLEASE, I'M ALEX ADAMS, SENIOR MANAGER OF MARITIME ENVIRONMENTAL PROGRAMS OF PORT OF SEATTLE
AND IF YOU COULD MOVE TO THE NEXT SLIDE, PLEASE
SO, COMMISSIONERS, WE ARE VERY PLEASED TO SHARE WITH YOU CHARTING THE COURSE TO ZERO PORT OF SALES MARITIME CLIMATE AND AIR ACTION PLAN, WHICH IS THE PORT'S IMPLEMENTATION PLAN FOR THE NORTHWEST PORTS CLEAN AIR STRATEGY AND ITS VISION TO PHASE OUT SEAPORT RELATED EMISSIONS BY 2050
THE MCAP ALSO ADVANCES THE CENTURY AGENDA GOAL TO BE THE GREENEST PORT IN NORTH AMERICA
WE FIRST BRIEFED YOU ON THE MCAP IN JANUARY OF THIS YEAR TO UPDATE TO YOU ON THE PLANS DEVELOPMENT AND OFFER AN EARLY LOOK AT THE PROPOSED PORT ACTIONS AND STRATEGIES UNDER CONSIDERATION
IN APRIL OF THIS YEAR, THE MANAGING MEMBERS AND THE TWO HOME PORT COMMISSIONS UNANIMOUSLY VOTED TO ADOPT THE NORTHWEST PORTS CLEAN AIR STRATEGY, WHICH, AS A REMINDER, IS A LONG STANDING AND COLLABORATIVE EFFORT BETWEEN PORT OF SEATTLE AND TACOMA, THE NORTHWEST SEAPORT ALLIANCE AND THE VANCOUVER FRASER PORT AUTHORITY IN BRITISH COLUMBIA
AS PART OF THE 2020 CLEAN AIR STRATEGY, THE NORTHWEST PORTS EACH COMMITTED TO DEVELOP IMPLEMENTATION PLANS THAT DETAIL THE SPECIFIC ACTIONS THEY WILL TAKE TO ACHIEVE THE CLEAN AIR STRATEGY VISION
OVER THE TWO READINGS TO ADOPT THE CLEAN AIR STRATEGY, STAFF FROM PORT OF SEATTLE PROVIDED ADDITIONAL DETAIL ON THE END CAP AND HEARD FROM COMMISSIONER CHO NEED FOR MORE PUBLIC ENGAGEMENT ON THESE PLANS, WHICH WE COMPLETED THIS PAST SUMMER WITH NWSA AND PUERTO TACOMA
FINALLY, TODAY, AFTER THREE YEARS OF WORK AND EXTENSIVE PUBLIC ENGAGEMENT, I AM VERY PROUD TO REQUEST THE FIRST READING OF RESOLUTION 37 92 TO ADOPT THE PORT OF SEATTLE'S IMPLEMENTATION PLAN FOR THE 2020 NORTHWEST PORTS CLEAN AIR STRATEGY, CALLED CHARTING THE COURSE OF ZERO PORT OF SEATTLE'S MARITIME CLIMATE AND INTERACTION PLAN
AS MENTIONED, THIS PLAN IS THE FIRST OF ITS KIND FOR THE PORT, AND WE ARE EXTREMELY PROUD OF AND GRATEFUL FOR THE COLLABORATIVE EFFORT BY MANY WHO HELP DEVELOP THIS COMPREHENSIVE APPROACH TO TAKE EQUITABLE MARITIME CLIMATE INTERACTION IN SEATTLE
RESOLUTION 37 92 JUSTIFIES THE PORT'S ROLE IN ADDRESSING THE GLOBAL CLIMATE CRISIS AND TO REDUCING LOCAL AIR EMISSIONS IN SEATTLE, ET CETERA
SUPPORTS WORK ON THE COMMITMENTS TO EQUITY AND ENVIRONMENTAL JUSTICE IDENTIFIED IN THE COMMISSION RESOLUTION 6737, THE DUWAMISH VALLEY COMMUNITY BENEFITS COMMITMENT, AND IT REFLECTS THE EXTENSIVE PUBLIC ENGAGEMENT THAT OCCURRED OVER THE LAST THREE YEARS TO DEVELOP THE CLEAN AIR STRATEGY IN THE PORT'S MCAP NEXT SLIDE, PLEASE
EXCUSE ME, ALEX
IF I CAN JUST INTERRUPT, GIVEN THAT THIS IS THE FIRST READING, COULD I ASK THAT YOU PERHAPS GIVE IT A MORE EXPEDITED REVIEW THAN YOU MIGHT HAVE PLANNED? WE STILL HAVE THIS VERY BIG TAX LEVY CONVERSATION FOLLOWING THIS AND THAT WE WOULD GIVE YOU MORE RATHER THAN JUST PUTTING IT ON CONSENT OR SOMETHING FOR THE SECOND READING, WE COULD TAKE MORE TIME TO FLESH IT OUT
I DON'T WANT US TO BE TOO GROGGY BY THE TIME WE GET TO THE LEVY CONVERSATION, WHICH UNTO ITSELF IS AN HOUR LONG PRESENTATION
SO IF THAT'S NOT TOO INSULTING FOR YOU, I WOULD ASK THAT YOU GIVE THAT A WHIRL UNLESS EXECUTIVE METRUCK WOULD LIKE TO POSTPONE THE FINAL PRESENTATION OF THE DAY
I DON'T THINK THAT'S THE CASE, RIGHT? I DON'T THINK SO
THEN PLEASE LET US BIFURCATE YOUR PRESENTATION A LITTLE BIT FOR TWO DIFFERENT COMMISSION MEETINGS
SO MAYBE WE CAN JUST HIT ON A COUPLE OF HIGHLIGHTS JUST TO MAKE SURE FOR THE FIRST READING
THERE'S A REPRESENTATION OF WHAT'S CAPTURED IN THE DOCUMENT, BUT WE'LL MAKE IT SHORT
DOES THAT SOUND VERY SHORT? DOES THAT SOUND GOOD? BUT THIS IS NOT TO SUGGEST WE DON'T WANT TO GET THE FULL BRIEF
IT'S JUST I DO KNOW THAT WE NEED TO GIVE A LOT OF THOUGHTS AT THE LAST PRESENTATION, IF THAT'S OKAY, SOUNDS GOOD
DO YOU WANT US TO JUST NOT BEGIN IT OR JUST SAY A FEW KIND OF HIT THE HIGHLIGHTS? GIVE US THE HIGHLIGHTS
OKAY
AND YOU CAN SKIP THROUGH THE SLIDES AND JUST HIT THE HIGH POINTS
OKAY
SOUNDS GOOD
SURE THING
SO ON THIS SLIDE, YOU'LL SEE THE PORT OF SEATTLE'S MARITIME CLIMATE AND INTERACTION PLAN HERE WITH THE RED BOX IS A TOPIC OF DISCUSSION
AND THIS IS OUR IMPLEMENTATION PLAN THAT CONTAINS REALLY THOSE SPECIFIC MEASURABLE ACTIONS FOR HOW THE PORT OF SEATTLE WILL IMPLEMENT THE CLEAN AIR STRATEGY
AND THE PURPOSE OF THE SLIDE REALLY IS TO SHOW HOW WE ARE TAKING COMPREHENSIVE APPROACH AND HAVE A SERIES OF CASCADING STRATEGIES THAT INTERCONNECT WITH EACH OTHER AND GO FROM BROAD, GENERAL AND REGIONAL TO VERY SPECIFIC
AND I WANT TO POINT OUT JUST VERY QUICKLY THAT ONE OF THE MOST IMPORTANT IMPLEMENTATION ACTIONS WITHIN THE MARITIME CLIMATE INTERACTION PLAN IS SHOWN HERE IN GREEN, AND THAT'S THE SEATTLE WATERFRONT CLEAN ENERGY STRATEGY AND THIS PLANNING EFFORT, AS YOU HEARD FROM CEO DEBORAH SMITH EARLIER, IS REALLY THE TYPE OF PARTNERSHIP THAT WE NEED TO ENACT THE MASSIVE CROSS SECTOR CHANGE REQUIRED TO DECARBONIZE SEATTLE'S MARITIME INDUSTRY
AND WE ARE GREATLY APPRECIATIVE THE SEATTLE CITY LIGHT FOR THEIR INVOLVEMENT AND THEIR ONGOING SUPPORT FOR OUR SHARED WORK
AND AS YOU'LL HEAR FROM RYAN A LITTLE LATER ON, WE HAVE MANY OTHER VERY DETAILED STRATEGIES THAT ARE BASED ON THE BEST AVAILABLE DATA AND SHOW THE PATH THAT WE WILL TAKE TO ACHIEVE OUR 2030 TARGET AND BEYOND
SO NEXT SLIDE, PLEASE
SO AS SANDY MENTIONED, THE MCAP CHART, OF COURSE, FOR US TO TAKE BOTH GLOBAL ACTION AND LOCAL ACTION
AS WE HAVE HEARD, THE IPCC HAS ISSUED DIRE NEED FOR IMMEDIATE, RAPID AND LARGE SCALE REDUCTIONS IN GREENHOUSE GAS EMISSIONS
AND WE ALSO KNOW THAT LOCAL ACTION IS NEEDED
SO WE ALSO KNOW THAT THERE ARE DISPROPORTIONATE HEALTH IMPACTS HERE IN SEATTLE, ESPECIALLY IN THE DUWAMISH VALLEY, WHICH IS A COMMUNITY OF PEOPLE WHO HAVE OR HAVE OR ARE CURRENTLY IMPACTED BY ECONOMIC, RACIAL AND ENVIRONMENTAL INJUSTICES THROUGH THE NCAA
WHAT WE'RE REALLY TRYING TO DO IS ADVANCE THAT EQUITABLE TRANSITION TO ZERO EMISSIONS AND DO SO WHILE ADVANCING THE LONGEST VALLEY COMMUNITY BENEFITS COMMITMENT AND TO WORKING WITH COMMUNITIES TO BUILD THOSE PARTNERSHIPS AND FORUMS THAT ARE REALLY CRITICAL TO PRIORITIZING AND DEVELOPING THOSE STRATEGIES THAT WE NEED TO MAKE BIG STEPS FORWARD TO REDUCE HUMAN HEALTH DISPARITIES HERE IN SEATTLE
THE NEXT SLIDE, PLEASE
COMMISSIONER FELLEMAN, THIS IS A SLIDE THAT I THINK YOU REFERENCED EARLIER
I WANT TO SPEND A LITTLE BIT OF TIME JUST ARTICULATING THE DIFFERENCE IN EMISSIONS THAT I UNDERSTAND THAT IT'S ALL IN THE PORT HARBOR
IT'S ALL A SEATTLE ISSUE, AND IN THE SOUTH HARBOR IT'S A TACOMA ISSUE
BUT WHAT THIS DIAGRAM SHOWS IS THE RELATIVE IMPACT ON EMISSIONS FROM THE THREE US PORTS THAT ARE PARTICIPATING IN THE NORTHWEST PORTS CLEAN AIR STRATEGY
AND THIS IS FROM OUR MOST RECENT EMISSIONS INVENTORY
AND AS YOU CAN SEE FROM THE PORT OF SEAPORT ALLIANCES CARGO RELATED OPERATIONS, 80% OF THOSE EMISSIONS ARE GREENHOUSE GAS EMISSIONS COME FROM SEAPORT ALLIANCE, AND 90% OF THE DIESEL PARTICULATE MATTER EMISSIONS COME FROM THE SEAPORT ALLIANCE WITHIN OUR ENTIRE AIR SHADE, WHEREAS THE PORT OF SEATTLE REPRESENTS 11% OF THE PORT GREENHOUSE GAS EMISSIONS AND 7% OF THE DIESEL PARTICULATE MATTER
AND AS YOU I THINK MENTIONED, COMMISSIONER FELLEMAN, IN SEATTLE, SEAPORT ALLIANCE REPRESENTS ABOUT THREE QUARTERS OF TOTAL GREENHOUSE GAS EMISSIONS, AND PORT OF SEATTLE REPRESENTS THE OTHER CORPORATE
HOWEVER, I WANT TO ALSO MENTION THAT WE'VE MADE SIGNIFICANT PROGRESS, AND TODAY MARITIME GREENHOUSE GAS EMISSIONS IN SEATTLE ARE 27% LOWER, AND MARITIME DPM EMISSIONS ARE 83% LOWER
THIS IS OBVIOUSLY REALLY GREAT NEWS, BUT WE ALSO HAVE A LOT MORE WORK TO DO TO GET TO ZERO
NEXT SLIDE, PLEASE
SO IN THE INTEREST OF TIME, I DO WANT TO SPEND A LITTLE BIT OF TIME TALKING ABOUT THIS SLIDE JUST FOR THE CLARITY OF THE CHALLENGE THAT WE'RE FACING
BUT I'LL TRY AND MOVE QUICKLY
SO AS WE CAN SEE 94% OF THE EMISSIONS FROM PORT OF SEATTLE'S MARITIME SOURCES, SPECIFICALLY, WE HAVE INDIRECT CONTROL
THESE ARE THE SCOPE THREE SOURCES, SO TO SPEAK
AND THE LARGEST OF THOSE, THE BIG BLUE WEDGE HERE ON THE LEFT IN THE BIG CIRCLE IS OCEAN GOING VESSELS FOR WHICH PORT OF SEATTLE MEANS CRUISE SHIPS AND BALL CARGO SHIPS
CRUISE SHIPS OPERATING IN OUR AIRSHED REPRESENTS 70% OF PORT OF SEATTLE'S TOTAL MARITIME RELATED MISSIONS, AND THEY MAKE UP OVER 90% OF EMISSIONS FROM OCEAN GOING TO THE VESSELS HARBOR VESSELS LIKE TUGBOATS, COMMERCIAL FISHING AND RECREATIONAL VESSELS ARE THE SECOND LARGEST SOURCE, FOLLOWED BY LOCOMOTIVE SERVING OUR GRANDCHILDREN
AND I WANT TO NOTE THAT BY SUPPLYING SHORE POWER, ENCOURAGING CLEANER FUELS AND MORE EFFICIENT EQUIPMENT, WE'VE MADE GREAT PROGRESS TO ADDRESS THESE SOURCES
AND THE MCAP PROPOSES THE NEXT STEPS WE NEED TO TAKE WE NEED TO TAKE TO ADDRESS OUR TARGETS
EXCUSE ME, ALEX
SO THAT'S 75%
THAT INCLUDES CREWS FROM CAPE FLATTERY TO HERE, CORRECT? YEAH
THAT'S IN OUR AIRSHIP, THAT 74%
THAT BIG BLUE WEDGE IS THE ENTIRETY OF OCEAN GOING VESSELS IN OUR AIRSHIP
AND OF THAT CRUISE SHIPS REPRESENT 92%
RIGHT
THE FACT IS THAT THE LOCOMOTIVES, THE CARGO HANDLING EQUIPMENT, THE PORT ADMINISTRATION HARBOR VESSELS, THOSE IMPACTS ARE MUCH MORE LOCALIZED, RIGHT
BECAUSE THEY DON'T TRANSIT THAT WHOLE 100 MILES ROUTE
AND SO I JUST THINK, WHILE IT'S TRUE, IF YOU'RE LOOKING FOR A GREENHOUSE GAS EMISSIONS PERSPECTIVE, THIS IS ALL THE SAME AREA FOR VESSELS TO CALL ON HERE
BUT IN TERMS OF HUMAN HEALTH EXPOSURE FOR THE DISPROPORTIONATELY IMPACTED COMMUNITIES, THAT MISREPRESENTS, REALLY WHERE THE EXPOSURE IS
YEAH
THE EMISSIONS INVENTORY IS AN ESTIMATE OF THE TOTAL EMISSIONS IN THE AIR SHED, AND IT DOESN'T GET INTO EXPOSURE LEVELS
IT'S REALLY LOOKING AT THE TOTAL EMISSIONS THAT ARE ASSOCIATED WITH PORT OPERATIONS
AND I HEAR YOUR INTEREST IN UNDERSTANDING THAT EXPOSURE IN GREATER DETAIL, AND THAT, I THINK REPRESENTS A SEPARATE STUDY FROM EMISSIONS INVENTORY
AND THAT'S SOMETHING WE CAN CERTAINLY THINK ABOUT IN THE FUTURE
BUT YOU'RE RIGHT
IT IS A BIG AIRSHED
AND WHEN WE LOOK AT EMISSIONS INVENTORIES, WE CAN SLICE MISSIONS IN A VARIETY OF DIFFERENT WAYS
AND WE CAN LOOK IN SEATTLE HARBOR OR TACOMA HARBOR OR THE AIRSHIP OVERALL
BUT SOMETIMES IT'S DIFFICULT BECAUSE OF HOW WE ESTIMATE EMISSIONS TO GET TO A VERY GRANULAR LOCAL LEVEL
I JUST WANT TO MAKE SURE THE PUBLIC WATCHING THIS KNOWS WHAT THESE NUMBERS REPRESENT
THAT'S IT I WOULD LIKE TO GET TO THE PLACE WHERE WE CAN SLICE AND DICE TO GET MORE TO THE PORT
BUT IN THE MEANTIME, IT IS WHAT IT IS
THANK YOU
SO MY FINAL POINT ON THIS SLIDE IS THAT EVEN THOUGH THE PORT DIRECTLY CONTROLLED EMISSIONS OF SCOPE ONE AND TWO SOURCES REPRESENT ONLY ABOUT 6% OF THE OVERALL TOTAL ACTION IN THAT AREA IS REALLY IMPORTANT BECAUSE ADDRESSING THOSE IS BOTH LOCALLY SIGNIFICANT FOR THE PORT AND OUR NEAR PORT COMMUNITIES, BUT ALSO ACTIONS HERE DEMONSTRATE LEADERSHIP ACROSS THE INDUSTRY
SO NEXT SLIDE, PLEASE
SO BEFORE I TURN IT OVER TO RYAN CHARLES, I JUST WANT TO TALK A LITTLE BIT ABOUT THE STRUCTURE OF THE MCAP AND INTRODUCE HOW THE DOCUMENTS SET UP AND WHAT WE'RE PLANNING TO PROPOSE HERE
SO THE MCAP FOCUSES ON THE MARITIME AND ECONOMIC DEVELOPMENT DIVISIONS, WATERFRONT EMISSION SOURCES, AND INCLUDES ACTIONS THAT ARE STARTING NOW, BUT ALSO WITH INTERIM MILESTONES IN 2025 AND 23RD
AND AS MENTIONED BEFORE, WE'RE REALLY SHOOTING AIMING TO HIT THAT 50% REDUCTION IN EMISSIONS BY 2030
AND THERE ARE TWO SECTIONS TO THE END CAP
ONE IS CALLED PORT MARITIME ADMINISTRATION, AND THOSE ARE THE SOURCES THAT WE HAVE MORE DIRECT CONTROL OVER, LIKE OUR FLEET VEHICLES AND OUR BUILDING ENERGY USE
AND THAT SECTION INCLUDES 24 STRATEGIES THAT COMBINE CAN REDUCE A TOTAL OF 2000 METRIC TONS OF CO2 BY 2030
THE SECOND SECTION IS CALLED PORT MARITIME ACTIVITY, AND THIS INCLUDES EMISSIONS SOURCES THAT WE HAVE INDIRECT CONTROL LIKE CRUISE SHIPS OR TENANTS, CARGO HANDLING EQUIPMENT, FISHING, RECREATIONAL BOATING, ETC
IN THIS SECTION, WE PROPOSE 19 STRATEGIES THAT TOGETHER CAN REDUCE 37,000 TONS OF CO2 BY 2030
SO WITH THAT, I WANT TO TURN IT OVER TO RYAN CHILD, WHO I'LL SAY HAS BEEN ABSOLUTELY INSTRUMENTAL IN LEADING THE CREATION OF THIS PLAN, AND SHE'LL PROVIDE SOME MORE DETAIL ABOUT HOW THE MCAP WAS DEVELOPED AND SOME OF THE STRATEGIES THAT WE'RE RECOMMENDING TO HIT OUR TARGETS
SO THANK YOU, BRIAN
YEAH
THANKS, ALEX
AND I'LL JUST HIGHLIGHT THE KEY POINTS ON THE NEXT SLIDE FOR INTEREST OF TIME
SO THE KEY POINT FOR THIS SLIDE IS JUST THAT WE REALLY HAD A ROBUST ENGAGEMENT PROCESS AROUND THE DEVELOPMENT OF THE MARITIME CLIMATE AND THEIR ACTION PLAN
IT TOOK PLACE PRIMARILY OVER THE LAST YEAR, BUT BUILT UPON FEEDBACK THAT WAS HEARD OVER THE TWO YEAR ENGAGEMENT PROCESS TO DEVELOP THE 2020 NORTHWEST SPORTS CLEAN AIR STRATEGY
SO WE REALLY WANT TO THANK EVERYONE WHO WAS INVOLVED IN THAT PROCESS AND DEDICATED A LOT OF TIME AND EFFORT TO REVIEWING THE STRATEGY AND THE MCAP AND PROVIDING COMMENTS AND FEEDBACK THAT LED TO A STRONGER PLAN
I WANT TO ALSO JUST HIGHLIGHT THAT OUR ENGAGEMENT PROCESS CHANGED OVER TIME AND IT CHANGED IN RESPONSE TO FEEDBACK
AND WE DID HEAR FROM THE COMMUNITY WITH THE ADOPTION OF THE NORTHWEST SPORTS CLEAN AIR STRATEGY THAT THE PUBLIC NEEDED MORE TIME TO REVIEW AND PROVIDE MEANINGFUL INPUT INTO THE DEVELOPMENT OF THE IMPLEMENTATION PLANS FOR PORT OF SEATTLE, THE NORTHWEST SEAPORT ALLIANCE AND PORT OF TACOMA
SO IN RESPONSE TO THAT FEEDBACK, WE EXTENDED OUR DEVELOPMENT TIMELINE AND TIMELINES, AND WE SYNCHRONIZED OUR PROCESSES TO EXTEND OUR ENGAGEMENT AND CONDUCT A MORE ROBUST AND COORDINATED COMMUNITY ENGAGEMENT PROCESS WITH PUERTO TACOMA AND THE ALLIANCE OVER THE SUMMER
SO THAT WAS WHERE THE ENGAGEMENT OPPORTUNITY IS HIGHLIGHTED ON THE SLIDE HERE THAT WE WENT THROUGH IN THAT ENGAGEMENT PROCESS
NEXT SLIDE
SO JUST BRIEFLY, THESE ARE SOME THEMES THAT WE HEARD THROUGH THE ENGAGEMENT PROCESS, AND A LOT OF THEM WERE REFLECTED IN THE COMMENTS THAT WERE HEARD TODAY AT THE BEGINNING OF THE MEETING AND THE PUBLIC COMMENT PERIOD
SO REALLY HEARD A STRONG CONSENSUS ABOUT ACHIEVING OUR MISSION VISION OF THE NORTHWEST CLEAN AIR STRATEGY AND A DESIRE FOR REPORTS TO PRIORITIZE CLIMATE AND CLEAN AIR INVESTMENTS TO ADDRESS HEALTH DISPARITIES
AND THEN THE FINAL ONE I'LL HIGHLIGHT HERE
AND AS YOU CAN SEE IN THE SPEECH BUBBLE ON THE SCREEN, WHICH SORT OF ILLUSTRATES THE RESPONSES THAT WE HEARD IN OUR SURVEY WAS THAT EMISSIONS FROM OCEAN VIEWING VESSELS AND INVIC SHIPS WERE REALLY SOME OF THE LARGEST CONCERN EXPRESSED IN THE PUBLIC COMMENT PROCESS
AND AS WE EVEN HEARD AT THE BEGINNING OF THE MEETING TODAY, A LOT OF CONCERN ABOUT EMISSIONS FROM CRUISE SHIPS AND CONCERN ABOUT THE IMPACT OF THOSE VESSELS ALSO HAVE A MARINE LIFE
NEXT SLIDE SO THIS SLIDE JUST SHOWS HOW THAT FEEDBACK HEARD DURING ENGAGEMENT LED TO SEVERAL CHANGES IN THE MCA
THIS IS NOT A COMPREHENSIVE LIST OF ALL THE CHANGES MADE, BUT JUST SOME HIGHLIGHTS
SO TWO BIG CHANGES THAT WE MADE WERE TO THE MCAP DID ACKNOWLEDGE THE GOALS OF RESOLUTION 3767, THE DUWAMISH VALLEY COMMUNITY BENEFITS COMMITMENT
BUT FOLLOWING ENGAGEMENT, WE UPDATED THE MCAP TO BETTER REFLECT STRATEGIC ALIGNMENT WITH COMMUNITY BENEFITS COMMITMENT AS WELL AS WITH THE DWARFS VALLEY CLEAN AIR PROGRAM ACTION PLAN
AND THEN WE ALSO MADE SOME CHANGES THAT I'LL DISCUSS LATER IN THE PRESENTATION TO JUST COMMUNICATE GREATER ACCOUNTABILITY TO THE COMMITMENTS THAT WE'VE MADE AND TO BETTER COMMUNICATE OUR PROGRESS
NEXT SLIDE SO THIS SLIDE SHOWS THE HIGHLIGHTS THE MISSION REDUCTION STRATEGIES IN THE NCAA, AND THESE ARE THE STRATEGIES THAT WE'RE LOOKING AT IN THE NEAR TERM THROUGH 2030, WHICH IS THE FOCUS OF THE SCOPE OF THE MCA AND COMMISSIONERS WILL SEE EACH OF THESE IMPLEMENTED THROUGH BUDGET REQUESTS, INCLUDING REQUESTS THAT ARE IN THE 2022 BUDGET
SO I'LL HIGHLIGHT JUST A FEW
WE'VE TALKED ALREADY A LOT ABOUT THE SEATTLE WATERFRONT CLEAN ENERGY STRATEGY WITHIN OUR OWN ADMINISTRATION, WE ARE LOOKING AT TRANSITIONING TO ELECTRIC LIGHT DUTY FLEET VEHICLES, PHASING OUT NATURAL GAS, REPLACING LIGHTING WITH LED LIGHTING, AND REDUCING EMISSIONS FROM SOLID WASTE AND COMMUTING
OUR NEAR TERM PRIORITIES ARE INSTALLING EV CHARGING, CONDUCTING BUILDING ENERGY AUDITS, AND INVESTING IN TECHNOLOGY TO GATHER MORE ACCURATE DATA ABOUT OUR FLEET AND OUR BUILDING ENERGY USE THAT CAN INFORM OUR FUTURE DECISION MAKING AND INVESTMENT
AND THEN ON THE MARITIME ACTIVITY SECTOR SIDE, WE TALKED A LOT ABOUT THIS IN THE PREVIOUS PRESENTATION ABOUT HOW WE'RE ADDRESSING EMISSIONS FROM OCEAN GOING VESSELS THROUGH DEVELOPING A SUSTAINABLE MARITIME FUELS PROGRAM, AND ENGAGING AT THE DOMESTIC AND INTERNATIONAL LEVELS
SOME EXAMPLES OF NEAR TERM EFFORTS INCLUDE PARTNERING WITH PACIFIC NORTHWEST NATIONAL LABORATORY AND SANDIA NATIONAL LABORATORY IN SEATTLE CITY LIGHT TO STUDY HYDROGEN FUELLING AND ALSO PARTNERING WITH MARITIME BLUE AND OTHERS ON RESPONSE TO US DEPARTMENT OF ENERGY TO IDENTIFY GREEN HYDROGEN CLUSTER IN WASHINGTON ARE JUST TWO EXAMPLES
NEXT SLIDE SO THE KEY MESSAGE ON THIS SLIDE IS THAT IT'S GOING TO TAKE A LOT OF FOCUS, RESOURCES AND INVESTMENTS TO IMPLEMENT THIS PLAN
THE MCAP INCLUDES A LOT MORE DETAIL ABOUT OUR COST ESTIMATES THAT COME FROM OUR FIVE YEAR CAPITAL IMPROVEMENT PLAN AND SOME PROGRAMMATIC COST ESTIMATES OF THOSE TOTAL TO GREATER THAN $38 MILLION
AND I JUST WANT TO NOTE THAT THAT DOESN'T INCLUDE THE FULL COST OF TRANSITIONING TO ZERO EMISSIONS TO INDUSTRY OR THINGS LIKE STAFF TIME, AND IT ALSO DOESN'T INCLUDE COST SAVINGS OR COST RECOVERY OPPORTUNITIES
NEXT SLIDE SO, AS I MENTIONED, ACCOUNTABILITY WAS A KEY THEME THAT CAME OUT OF OUR ENGAGEMENT PROCESS, AND SO WE'VE INCLUDED ACCOUNTABILITY FRAMEWORK IN THE MCA, AND THE PLAN INCLUDES PERFORMANCE METRICS FOR EACH SECTOR THAT WE WILL REPORT ON ANNUALLY, AND WE'LL ALSO CONTINUE TO CONDUCT OUR EMISSIONS INVENTORIES
WE ALSO TAKE AN ADAPTIVE MANAGEMENT APPROACH TO IMPLEMENTATION, WHICH IS SIMILAR TO THE APPROACH FROM THE NORTHWEST PORTS CLEAN AIR STRATEGY
SO RIGHT NOW, WE DON'T KNOW WHAT THE FUTURE HOLDS OR THE PACE AT WHICH NEW TECHNOLOGY WILL EMERGE
BUT AS OPPORTUNITIES CHANGE IN ADVANCE OF THE NEXT DECADE, WE'LL CONTINUE TO INCORPORATE THOSE CHANGES INTO IMPLEMENTATION
AND PART OF THAT APPROACH WILL INCLUDE REVIEWING THE IMPLEMENTATION ACTIONS AND TIME FRAMES ANNUALLY AND CONDUCTING A FULL REVIEW OF THE NORTHWEST PORTS CLEANER STRATEGY EVERY FIVE YEARS
NEXT SLIDE
AND THIS SLIDE WAS JUST THE FINAL CONCLUDING NOTE THAT WHILE THE MCAP SETS US UP TO ACHIEVE OUR 50% BY 2030 GREENHOUSE GAS EMISSIONS REDUCTION TARGET, WE CAN SUCCEED IN THIS VISION ALONE, AND WE'LL NEED SEVERAL FACTORS TO HELP US ALONG THE WAY THERE
SO I'LL SKIP OVER THIS SLIDE AND JUST MOVE ON TO NEXT STEPS IN THE INTEREST OF TIME
AND THEN, AS WE MENTIONED, THIS IS THE FIRST READING OF RESOLUTION NUMBER 3792
SO OUR SECOND READING IS SCHEDULED FOR NOVEMBER 16
AND JUST WANT TO REITERATE THAT THE NORTHWEST SEAPORT ALLIANCE IN PORT OF TACOMA ARE ALSO DEVELOPING COMPLEMENTARY NORTHWEST PORTS CLEANER STRATEGY IMPLEMENTATION PLANS, AND THOSE ARE ALSO SCHEDULED TO BE FINALIZED THIS FALL
SO THAT CONCLUDES OUR BRIEFING
AND THANK YOU FOR YOUR TIME TODAY
THANK YOU, RYAN, AND WE'LL GO AROUND THE HORN ONE MORE TIME
BUT I JUST WANT TO MAKE SURE THAT WHEN WE'RE DOING OUR WATERFRONT ELECTRIFICATION ANALYSIS, WE'RE LOOKING AT ALL MARINE TERMINAL, RIGHT
IT'S NOT JUST THE PORT OF SEATTLE WATERFRONT ELECTRIFICATION PLAN, RIGHT? YES
IT'S CONDUCTED IN PARTNERSHIP WITH THE ALLIANCE
SO IT INCLUDES ALL THE TERMINAL IN THE SEATTLE HARBOR
AND ARE WE ALSO TALKING TO OTHER TENANTS THAT ARE NOT EITHER OF OUR ASSETS, LIKE THE COAST GUARD? AND OBVIOUSLY THE FERRY SERVICE IS FRONT AND CENTER
THEY'RE BOTH LIKE THE FIRST AT THE TABLE, BUT WE'RE GETTING ESTIMATES OF EVERYBODY'S LOAD DEMANDS
YEAH
COMMISSIONER, WE'RE LOOKING AT ALL THE MAJOR WATERFRONT ENERGY USERS, AND THAT'S LIKE YOU MENTIONED, BEYOND JUST PORT OF SEATTLE PROPERTIES
SO THERE ARE SOME ADJACENT TENANTS, SUCH AS NEWCORE OR, AS YOU MENTIONED, WASHINGTON STATE FERRIES, THOSE OTHER TYPES OF INDUSTRIES WHERE IT REALLY BENEFITS US TO KNOW THEIR INTEREST, BECAUSE THAT WILL ALLOW THE UTILITY TO HAVE A MORE HOLISTIC PLANNING APPROACH TO THE WATERFRONT GRID
AND WHEN DO WE EXPECT TO SEE THE RESULTS OF THAT REPORT? SO WE'RE IN THE PROCESS OF DOING THE DATA ANALYSIS RIGHT NOW
SO WORKING CLOSELY WITH THE UTILITY AND I WOULD EXPECT THAT YOU'LL SEE THE RESULTS OF THAT INITIAL SORT OF LOAD ANALYSIS EARLY NEXT YEAR, AND WE'RE STILL ON TRACK TO COMPLETE THE STRATEGY BY THE END OF NEXT YEAR
FANTASTIC
I'M JUST HOPING THAT WHEN THE BUILD BACK, BETTER MONEY COMES THROUGH, THAT WILL HAVE SOMETHING TO ASK FOR
RIGHT
WE'RE WORKING HARD TO ENSURE THAT WE'RE COORDINATED WITH OUR PARTNERS ON THAT AND WORKING WITH MARITIME BLUE AS WELL
COMMISSIONER FELLEMAN, IF I COULD JUST JUMP IN HERE TOO AND SAY THAT CEO SMITH, MYSELF, THAT WAS THE SUBJECT
WE TALKED ABOUT THE THINGS THAT ALEX JUST MENTIONED
WE TALKED ABOUT MAKING SURE THE COAST GUARD WAS AT THE TABLE
AND THAT THE IMPORTANCE OF TAKING THE HOLISTIC VIEW OF THAT
AND HER AND HER TEAM ARE ON BOARD WITH THAT
IT WAS A GREAT DISCUSSION
GREAT
AND SHE'S STILL OPTIMISTIC THERE'S ENOUGH JUICE TO GO AROUND
ALL RIGHT
WELL, I'M AMAZED TO HEAR THAT ANYWAY
CLARK, WOULD YOU PLEASE LET'S HAVE A MOTION FOR THE FIRST READING? MR COMMISSIONER PRESIDENT, THANK YOU
COMMISSIONER BOWMAN, I'M SO SORRY
LET ME GO AHEAD AND READ THE NOW, THEREFORE, INTO THE RECORD
OR MR BUTCHER, WOULD YOU LIKE TO DO THAT? I'LL GO AHEAD
CLERK HART
THANKS
SO WE'LL GO AHEAD AND READ IT INTO THE RECORD FIRST AND AGAIN, THIS IS FOR INTRODUCTION WITH ADOPTION PLAN FOR THE NEXT MEETING
BUT JUST SO IT'S CLEAR
AND THEN WE'LL TAKE THE MOTION AND I HAVE COMMISSIONER BOWMAN MAKING THAT MOTION
SO THE NOW THEREFORE BE A RESOLVED CLAUSE IS BY THE PORT OF SEATTLE COMMISSION AS FOLLOWS THE PORT OF SEATTLE HERE BY ADOPTS AND DIRECTS THE EXECUTIVE DIRECTOR TO IMPLEMENT CHARTING THE COURSE TO ZERO PORT OF SEATTLE'S MARITIME CLIMATE AND AIR ACTION PLAN AS THE PORT OF SEATTLE'S IMPLEMENTATION PLAN FOR THE 2020 NORTHWEST PORTS CLEAN AIR STRATEGY ATTACHED AS EXHIBIT A
AND AGAIN, THIS IS FOR INTRODUCTION AT THIS POINT IN TIME
AND I DID HEAR A MOTION FROM COMMISSIONER BOWMAN
DO WE HAVE A SECOND? I'LL SECOND IT ANYWAY
LET'S HAVE A DISCUSSION
CLERK HART
WOULD YOU PLEASE GO AROUND THE ROOM? YES
DO WE WANT TO JUST SEE IF ANY COMMISSIONERS HAVE QUESTIONS IN THE INTEREST OF TIME THEY COULD RAISE HANDS, PLEASE
WE'RE GOING TO HAVE ANOTHER BITE AT THIS APPLE FOR THE SECOND READING
SO SHOW RESTRAINT ANYWAY
YES
AND CLARIFICATION THAT IT IS CURRENTLY SCHEDULED FOR ADOPTION ON NOVEMBER 16, THOUGH NOT ON THE 9TH IS WHAT I'M SEEING
SO THANK YOU FOR THAT
AND THEN WE HAVE A MOTION IN A SECOND
NO QUESTIONS, NO HANDS RAISED
SO WE'LL GO, OH, I DO HAVE THE COMMISSIONER STEINBRUECK
YEAH
I THINK THAT THE RESOLUTION NEEDS TO HAVE SOME ADDED LANGUAGE ADDRESSING EQUITY AND ADJUST THEIR AN EQUITABLE TRANSITION
I BELIEVE IT IS SILENT ON THAT
AND AMONG THE MANY CHALLENGES OF GETTING TO ZERO IS THE TRANSITION AND TAKE NO ENEMIES VERSUS DO IT IN A FAIR AND EQUITABLE WAY SO THAT NOBODY IS HURT BY THE TRANSITION IN THE FORM OF JOB LOSS AND OTHER IMPACTS
I WOULD LIKE TO HAVE SOME LANGUAGE DEVELOPED TO ADD TO THE RESOLUTION BEFORE THIS FINAL VOTE
AND I WOULD LIKE TO HEAR FROM OUR OFFICE OF EQUITY DIRECTOR ON THAT TOPIC
I ALSO WOULD ASK A QUESTION
EXCUSE ME
COMMISSION STEINBRUECK
AARON, YOU HAVE AN ANSWER IN RESPONSE TO HIS HAPPY TO WORK WITH YOU ON SOME OF THAT LANGUAGE
COMMISSIONER CENTER
YEAH
OKAY
GOOD
IF THAT'S STILL AN OPPORTUNITY, I WOULD LIKE TO MAKE A SMALL AMENDMENT TO ADD THAT QUALIFYING LANGUAGE REGARDING THE TRANSITION TO ZERO
SECONDLY, IT SEEMS VERY CLEAR THAT NO TRANSITION IS POSSIBLE ON A STRAIGHT LINE
THERE SEEMS TO BE SOME MYTHICAL BELIEF OUT THERE THAT WE SHOULD BE WORKING EVERY YEAR WITH INCREMENTAL PROGRESS TOWARD THE ULTIMATE GOAL OF ZERO EMISSIONS
IT DOESN'T WORK THAT WAY
THE INVESTMENTS TAKE TIME, THE INFRASTRUCTURE TAKES TIME, AND WE'RE NOT GOING TO SEE A STRAIGHT LINE RESULT
AND I'M SAYING THAT IN THE FORM OF A QUESTION, PARTICULARLY TO DIRECTOR KILROY REGARDING HOW WE CAN BEST ACHIEVE, TRACK AND ACCOMPLISH
AND MAYBE THERE ARE SOME MILESTONES ALONG THE WAY WHERE WE CAN SEE SOME UPTICKS IN RESULTS THROUGH OUR EFFORTS
BUT PERHAPS YOU COULD SPEAK TO THAT AS WELL
YEAH
HAPPY TO ANSWER THAT
AND THEN COMMENT ON THE RESOLUTION
SO I DO THINK IT'S NOT ALWAYS LINEAR AND IT'S NOT GOING TO BE A STRAIGHT LINE
THERE ARE CERTAIN ACTIONS THAT WILL HAVE SMALLER IMPACTS AND CERTAIN ACTIONS WITH LARGER
SO, FOR EXAMPLE, AS SOON AS WE STOP USING NATURAL GAS IN OUR FACILITIES LIKE THE WATERFRONT CONVENTION CENTER, YOU'LL SEE A SIGNIFICANT DROP, RIGHT
JUST FROM THAT ONE ACTION
SO IT MIGHT TAKE US FIVE YEARS TO PLAN THAT ACTION, SO IT'LL BE ZERO
AND THEN YOU'LL SEE THAT IT IMPLEMENTED AND A SIGNIFICANT DROP
SO THAT HAPPENS WITH A NUMBER OF ACTIVITIES
SO I THINK YOU'RE RIGHT
IT'S NOT EASY, AND IT'S NOT A YEAR BY YEAR LINEAR CHANGE
I DO WANT TO JUST GO BACK TO THE RESOLUTION
DEFINITELY WANT TO MAKE SURE WE CAPTURE YOUR INPUT ON JUST TRANSITION
WE DID TRY TO INCORPORATE OUR COMMITMENT TO THE COMMUNITY AND EQUITY CONCERNS, AND IN FACT, BOTH THE DUWAMISH RIVER CLEANUP COALITION AND THE PORT COMMUNITY ACTION TEAM WERE ENGAGED IN DRAFTING THE RESOLUTION
IT DID CHANGE A COUPLE OF TIMES, BUT WE HOPE TO HAVE KEPT THAT SPIRIT
SO IF WE NEED TO ADD SOME LANGUAGE, WE CERTAINLY WILL
BUT I DID WANT YOU TO KNOW THAT COMMUNITY GROUPS WERE ENGAGED IN TRYING TO REPRESENT THAT IN THE RESOLUTION
THANK YOU
YEAH
TO ILLUSTRATE COMMISSION STEINBRUECK YOUR POINT, THOUGH, IF WE LOOK AT THE BRIEFING MEMO ON FOR ITEM TEN, C ON THE POWERPOINT PRESENTATION WHERE THEY SHOW OUR SCOPE, ONE AND TWO EMISSION REDUCTION PATHWAYS FOR AVIATION AND MARITIME, WHICH IS SLIDE NUMBER TWELVE
YOU'LL SEE, IT'S A STEP WISE FUNCTION
IT HAS SLOPE AND A CLIFF A SLOPE THAN A CLIFF, AND THEY HAVE TO DO A REALLY LOVELY JOB IN SHOWING THE INITIATIVES THAT RESULTED IN THOSE CLIFFS
SO ANYWAY, GOOD POINT
GOOD EXAMPLE
AND CAN WE THEN MOVE ON? YES
I SEE NO OTHER HANDS RAISED AT THIS TIME THAT WE CAN GO AHEAD AND CALL THE ROLL FOR THE MOTION TO INTRODUCE, PLEASE
THANK YOU
BEGINNING WITH COMMISSIONER BOWMAN
AYE
THANK YOU, COMMISSIONER CALKINS
AYE
THANK YOU, COMMISSIONER CHO
AYE
THANK YOU
COMMISSIONER STEINBRUECK
YES
THANK YOU, COMMISSIONER FELLEMAN
AYE
YES
YOU HAVE FIVE YESSES AND ZERO NOS FOR INTRODUCTION OF THIS ITEM
VERY GOOD
THEN THE MOTION PASSES
AND WE'RE VERY PLEASED BY HAVING HAD THE OPPORTUNITY TO HAVE THOSE THREE PRESENTATIONS AS WELL AS THE INTRODUCTION FROM CEO SMITH
IT WAS AND WE WILL LOOK FORWARD TO OUR ONGOING EFFORTS AND IMPLEMENTATION THEREOF
SO WE NOW MOVE ON TO OUR FINAL ITEM OF THE DAY, I BELIEVE
YES
AND THIS IS ITEM NUMBER ELEVEN
A
WE CAN GO AHEAD AND READ THAT INTO THE RECORD AND THEN EXECUTIVE DIRECTOR CAN INTRODUCE
THIS IS THE BRIEFING ON THE TAX LEVY AND DRAFT PLAN OF FINANCE FOR 2022 TO 2026 COMMISSIONERS
WE NOW LIKE TO PRESENT OUR FIVE YEAR PLAN FINANCE TO DESIGN AND CONSTRUCT OUR CRITICAL AVIATION, MARITIME AND ECONOMIC DEVELOPMENT, CAPITAL IMPROVEMENTS
THE PLAN DETAILS THE VARIOUS FUNDING SOURCES WE UTILIZE FOR THESE PROJECTS, AS WELL AS OUR OBJECTIVE TO MAINTAIN STRONG CREDIT RATINGS AND CONSERVE OUR RESOURCES FOR UNEXPECTED EVENTS, WHICH THE LAST TWO YEARS HAVE SHOWN US THERE MAY BE
OUR CAPITAL INVESTMENTS WILL REACH RECORD LEVELS OVER THE NEXT FIVE YEARS, WHICH REFLECTS OUR CONFIDENCE IN THE PORT'S PERFORMANCE AS WELL AS THE REGION'S ECONOMIC RECOVERY
THESE PROJECTS WILL DELIVER CRITICAL INFRASTRUCTURE AS WELL AS CREATING THOUSANDS OF NEW JOBS FOR THE REGION
WE WILL ALSO DISCUSS THE PROPERTY TAX LEVY FOR 2022, WHICH ARE PROPOSED TO INCREASE BY 3% TO HELP KEEP PACE WITH INFLATION
BASED ON CURRENT FORECAST OF THE COUNTRYWIDE OF THE COUNTYWIDE ASSESSED VALUATION, THE ACTUAL TAX PAID BY THE MEDIAN HOMEOWNER WILL REMAIN UNCHANGED AT $72 A YEAR NEXT YEAR
ON PRESENT CALCULATIONS, THE LEVY HELPS FUND OUR INVESTMENTS IN THE MARITIME INFRASTRUCTURE, ENVIRONMENTAL SUSTAINABILITY AND TRANSPORTATION, MOBILITY AND GRANTS TO THE COMMUNITY FOR SMALL BUSINESS WORKFORCE DEVELOPMENT, TOURISM AND EQUITY PROGRAMS OUR MODEST TAX LEVY REPRESENTS A REAL BARGAIN FOR THE COMMUNITY IN TERMS OF NEW ECONOMIC ACTIVITY, JOBS AND ENVIRONMENTAL IMPROVEMENTS
PRESENTERS THIS AFTERNOON ARE ELIZABETH MORRISON, DIRECTOR OF CORPORATE FINANCE AND AS WELL AS SCOTT BERTRAM, MANAGER, CORPORATE FINANCE ANALYSIS AND BUDGET
SO WITH THAT, I'LL TURN IT OVER TO ELIZABETH ELIZABETH, GOOD AFTERNOON
IN THE INTEREST OF TIME, I'LL DIVE RIGHT IN
I BELIEVE THERE'S A PRESENTATION
THANK YOU
IF YOU COULD GO TO THE NEXT SLIDE, PLEASE, WE WILL BE COVERING TWO TOPICS TODAY
AS YOU NOTED, THE FIRST WILL BE THE FIVE YEAR DRAFT PLAN OF FINANCE, AND THEN WE WILL DISCUSS THE PORT TAX LEVY
IF YOU COULD ADVANCE TO SLIDE FOUR, PLEASE
THANK YOU
SO THE DRAFT PLAN OF FINANCE IS PROVIDED ANNUALLY TO INFORM THE BUDGET PROCESS AND THE LONG TERM CAPITAL INVESTMENT DECISIONS IT'S DEVELOPED BASED ON A SUSTAINABLE FINANCIAL MODEL
SO WE START WITH THE FIVE YEAR FORECASTS THAT ARE PROVIDED BY OUR BUSINESSES, INCLUDING THE NORTHWEST SEAPORT ALLIANCE, THEIR OPERATING FORECAST AND THEIR CAPITAL SPENDING FORECAST, AND WE DEVELOP A FUNDING PLAN WITHIN THE FINANCIAL TARGETS THAT THE PORT HAS ESTABLISHED
NEXT SLIDE, PLEASE
THIS YEAR WE'VE HAD A BIT OF A SHIFT WHERE LAST YEAR WE WERE PLANNING WITH A GREAT DEAL OF UNCERTAINTY
THIS YEAR, WE ARE BALANCING A RECOGNITION OF ONGOING UNCERTAINTY WITH THE RECOGNITION THAT WE ARE SEEING IMPROVEMENTS AND OUR BUSINESSES ABILITIES TO ADAPT TO THE ONGOING PANDEMIC
AS I MENTIONED, WE DO DEVELOP OUR PLAN WITHIN FINANCIAL TARGETS
YOU'VE SEEN THESE BEFORE IN THE LAST COUPLE OF YEARS, THE PORT HAS ACTUALLY STRENGTHENED THESE TARGETS, AND THAT GIVES US A LITTLE BIT MORE FLEXIBILITY IN OUR FINANCIAL PLANNING
IT'S A BIT LIKE WIDENING THE SHOULDERS ON THE ROAD SO THAT YOU HAVE MORE ROOM TO MANEUVER
NEXT SLIDE, PLEASE
THE DRAFT PLAN OF FINANCE COMBINES ALL OF THE BUSINESSES OF THE PORT
AT THE SAME TIME, WE RECOGNIZE THAT THERE ARE REALLY TWO DISTINCT FUNDING MECHANISMS WITHIN THE PORT
THE AIRPORT IS A SELF FUNDING OPERATION
IT RELIES PRIMARILY ON ITS OWN OPERATING CASH AND THE USE OF REVENUE BONDS THAT ARE PAID FROM THAT OPERATING CASH
IT HAS SOME UNIQUE FUNDING SOURCES IN THE FORM OF CAPITAL GRANTS FROM THE FAA AND TRANSPORTATION SECURITY ADMINISTRATION
THESE ARE DISTINCT FROM THE COVID RELIEF GRANTS THAT WE'VE RECEIVED THAT SUPPORT OUR OPERATIONS AND THESE FUNDS
BOTH THESE UNIQUE FUNDING SOURCES AND THE AIRPORT REVENUES CAN ONLY BE USED FOR AIRPORT PURPOSES
THE NON AIRPORT BUSINESSES, INCLUDING THE SUPPORT ALLIANCE, ALSO RELY ON OPERATING CASH AND REVENUES PAID FROM OPERATING CASH
BUT TO A LESSER EXTENT THAN THE AIRPORT
THE TAX LEVY AND GO BONDS THAT ARE PAID FROM THE TAX LEVY ARE A SIGNIFICANT FUNDING SOURCE FOR THESE BUSINESSES AS WELL
AND WHEN WE GET TO THE TAX LEVY SECTION, I'LL GO INTO MORE DETAIL ABOUT THE ASSUMPTIONS RELATED TO THE TAX LEVY THAT HAVE GONE INTO THE DEVELOPMENT OF THE PLAN OF FINANCE
THERE ARE SOME UNIQUE FUNDING SOURCES FOR THE NON AIRPORT BUSINESSES, SOME SPECIFIC GRANTS FOR PROJECTS, AND MORE RECENTLY, THE HARBOR MAINTENANCE TAX
NEXT SLIDE, PLEASE
I'LL TURN IT OVER TO SCOTT BERTRAM, WHO WILL GO INTO THE DETAILS OF THE FUNDING PLAN
THANK YOU, ELIZABETH, AND GOOD AFTERNOON, COMMISSIONERS
IF WE COULD MOVE TO THE NEXT SLIDE, PLEASE
SO, AS ELIZABETH NOTED, THE FUNDING PLAN IS BIFURCATED BETWEEN AIRPORT AND NON AIRPORT OPERATIONS
SLIDE EIGHT HERE SUMMARIZES THE $4 BILLION AIRPORT FUNDED CIP, WHICH INCLUDES AN ALLOCATED PORTION OF THE CENTRAL SERVICES
CIP AVIATION FINANCE STAFF BRIEFED YOU ON THE CIP BACK ON THE OCTOBER 12 BUDGET STUDY SESSION
AND SO I'LL JUST TOUCH ON A FEW QUICK POINTS HERE
HOLISTICALLY LOOKING AT THE CIP, YOU'VE GOT OVER 150 PROJECTS
IN ADDITION TO SOME OF THE MEGA PROJECTS THAT ARE OUTLINED SPECIFICALLY IN THIS CHART, WE'VE GOT ABOUT 776,000,000 OF FORECASTED SPENDING ON PROPOSED NEW AIRPORT PROJECTS, AND THAT WAS ABOUT 25 PROJECTS
WE'VE ALSO GOT 203,000,000 OF PRELIMINARY SAMPLE PLANNING AND DESIGN COSTS, BUT DOES NOT INCLUDE FUTURE SAM PROJECTS AT THIS POINT
TOUCH ON QUICKLY
FROM A CASH FLOW PERSPECTIVE, ABOUT 27% OF THESE CASH FLOWS ON THIS CHART HAVE BEEN AUTHORIZED, AT LEAST IN PART FOR CONSTRUCTION, AND A LITTLE OVER 30% HAS HAD SOME DESIGN AUTHORIZATION AND JUST A REMINDER THAT THE CAPITAL SPENDING YOU SEE HERE IS FOR THE NEXT FIVE YEARS AND DOES NOT NECESSARILY REFLECT TOTAL PROJECT COSTS
NEXT SLIDE, PLEASE SLIDE NINE COVERS THE FUNDING OF THE $4 BILLION AIRPORT CIP WE'VE GOT OPERATING CASH ABOUT 392,000,000
THIS INCLUDES BOTH EXISTING CASH BALANCES AND FUTURE AIRPORT CASH FLOWS
JUST A REMINDER THAT MUCH OF THE CASH THAT THE AIRPORT IS GENERATING IN THE COMING YEARS WILL BE SET ASIDE AS THE AIRPORT INCREASES ITS CASH BALANCES FOR RESILIENCY PURPOSES
WE'VE ALSO GOT REVENUE BONDS
WE'VE GOT EXISTING REVENUE BONDS FOR 381,000,000, WHICH IS LARGELY THE 2021 BOND ISSUANCE THAT WE SUCCESSFULLY CLOSED THIS PAST JUNE
WE'VE GOT FUTURE REVENUE BONDS, WHICH IS THE LARGEST FUNDING SOURCE AT ABOUT 3.1 BILLION
WE DO EXPECT A PORTION OF THIS FUNDING TO BE NEEDED IN 2022 OR 2023 AT THE LATEST
COLLECTIVELY, THOSE THREE FUNDING SOURCES, EITHER AIRPORT CASH AND REVENUES OR THE REVENUE BONDS THAT ARE BACKED BY THOSE REVENUES WILL FUND 96% OF THE AIRPORT CIP
THE REMAINING FUNDING SOURCES ELIZABETH TOUCHED ON
THERE ARE ABOUT 125,000,000 OF AIRPORT CAPITAL GRANTS IN THE FORM OF TSA AND FAA GRANTS, AND WE'VE ALSO GOT SOME SMALL DIRECT CAPITAL FUNDING FROM PFCS AND CFCS
THAT'S THE 19 MILLION THAT YOU SEE REPRESENTED IN THE CHART
NEXT SLIDE, PLEASE
ONE MORE
SORRY ABOUT THAT
THANK YOU
SO MOVING ON TO THE NON AIRPORT, YOU SEE A $702,000,000 CIP FOR THE NEXT FIVE YEARS
YOU'VE GOT 378,000,000 FOR THE COMBINED MARITIME AND EDD CIP, WHICH STEPHANIE JONES, STEVENS AND DAVE MCFADDEN ALSO BRIEFED YOU ON OCTOBER 12
WE'VE GOT 276,000,000 NWSA CIP FUNDING, WHICH REPRESENTS THE PORT'S 50% SHARE OF THE TOTAL NORTHWEST SEAPORT ALLIANCE CIP
I BELIEVE YOU WILL BE BRIEFED ON THIS ON THURSDAY AT THE ALLIANCE BUDGET WORKSHOP
WE'VE ALSO GOT ABOUT 40 MILLION OF NWSA RELATED BUT PORT CIP
SO THIS IS BASICALLY PORT OF SEATTLE CIP FUNDED BY THE PORT OF PORT ONLY IN SUPPORT OF THE ALLIANCE AND INCLUDES PRIMARILY WESTWATER WAY CHANNEL DEEPENING DURING THIS FIVE YEAR PERIOD
NEXT SLIDE, PLEASE EXCUSE ME
WE DID NOT INCLUDE T 46 AS WELL, OR WHICH PART OF T 46
OUR PART THE PORT WHERE WE PAY RENT TO THE THAT WOULD BE INCLUDED IN OPERATIONS
YEAH, IT'S NOT ON THE CIP SIDE
MY BAD
SORRY, IT'S FACTORED INTO OUR MODEL, BUT YOU'RE RIGHT, NOT A CAPITAL FUNDING
SO LOOKING AT HOW WE'RE GOING TO PROBABLY OUTLINE FUNDING OF THE 702,000,000 CIP, YOU CAN SEE OPERATING SOURCES FUND ABOUT 39% OF THE CURRENT CIP, SO THAT'S OPERATING CASH REPRESENTS EXISTING GENERAL FUND BALANCES IN FUTURE NON AIRPORT REVENUES
THAT EXPECTS TO FUND ABOUT 160,000,000
WE ALSO EXPECT TO BE ABLE TO LEVERAGE SOME OF THOSE REVENUES IN THE FORM OF FUTURE REVENUE BONDS THAT'S EXPECTED TO FIND AN ADDITIONAL ABOUT 113,000,000
ONE CAVEAT THERE
FUTURE REVENUE BONDS REALLY AREN'T EXPECTED UNTIL LATER IN THE FIVE YEAR PERIOD
I THINK OUR CURRENT MODELS HAVE IT ACTUALLY IN 2026, THE LAST YEAR OF THE PERIOD, AND THAT'S BASED ON WHEN THOSE BUSINESSES REGAIN CAPACITY FOR REVENUE BONDS UNDER OUR FINANCIAL POLICIES
SO THAT'S GOING BACK TO THAT SERVICE COVERAGE REQUIREMENT, THE 1.8 TIMES COVERAGE THAT ELIZABETH TOUCHED ON AN EARLIER SLIDE, LEVY SOURCES FUND ABOUT 56% OF THE CIP
SO THIS INCLUDES LEVY CASH, FUTURE GO BONDS AND THE REMAINING HARBOR DEVELOPMENT FUNDS
SO YOU CAN SEE WE'VE GOT ABOUT 87 MILLION OF TAX LEVY FUNDING IN THE FORM OF LEVY CASH
THE BIGGEST SINGLE SOURCE OF FUNDING WILL ACTUALLY COME FROM FUTURE GO BONDS, WHICH WE ESTIMATE AT 292,000,000
AS YOU KNOW, THE ASSOCIATED DEBT SERVICE ON GO BONDS IS PAID FROM TAX LEVY
WE ARE PLANNING TO ISSUE A PORTION OF THOSE GO BONDS IN EARLY 2022, WHICH WE'LL DISCUSS IN A SUBSEQUENT SLIDE
WE ALSO ANTICIPATE FUNDING APPROXIMATELY 14 MILLION OF THE REMAINING TERMINAL FIVE COSTS IN 2022 WITH THE HARBOR DEVELOPMENT FUND, WHICH WILL THEN DEPLETE THAT FUND
SO A LITTLE BIGGER PICTURE
56% OF THE CIP HERE EXPECTED TO BE FUNDED WITH LEVEE SOURCES THAT WAS COMPARED TO NEARLY 80% A YEAR AGO WHEN WE PRESENT THE PLAN OF FINANCE
SO WE'RE STARTING TO SEE A LITTLE BIT OF A SHIFT FROM LEVY RESOURCES TO REVENUE SOURCES, LARGELY DRIVEN BY IMPROVED OPERATING FORECASTS FOR THOSE BUSINESSES NOW, COMPARED TO THIS TIME LAST YEAR, WHICH WE DEALT WITH MUCH MORE UNCERTAINTY PERHAPS, THAN WHAT WE HAVE NOW
BUT AS I NOTED, THAT MUCH OF THAT REVENUE CAPACITY DOES COME LATER IN THE FIVE YEAR PERIOD, AND THERE IS STILL A SIGNIFICANT NEED FOR LEVY FUNDING IN THE PORT TERM
EXCUSE ME
CAN YOU BREAK OUT THE 56% HOW IT DIVIDES WITHIN THE THREE CATEGORIES YOU HAVE THERE? YEAH
IF YOU ADD UP LEVY CASH, FUTURE GO BONDS AND HARBOR DEVELOPMENT FUNDS THAT'S EFFECTIVELY LEVY SOURCES AND DIVIDE THAT BY THE TOTAL, A LITTLE OVER HALF COMES FROM THOSE THREE FUNDING SOURCES
I MEAN, WHAT PERCENTAGE PER FUNDING SOURCE I'M GOING TO GET BACK TO YOU ON THAT ONE
I CAN DO SOME QUICK ENVELOPE MATH HERE
IT'S OKAY
YOU DON'T HAVE TO DO IT THIS SECOND
SURE
I DON'T UNDERSTAND WHY THE HARBOR DEVELOPMENT IS IN THERE UNDER TAX LEVY
I THINK ELIZABETH WILL TOUCH ON THIS A LITTLE BIT LATER, BUT THE HARVARD DEVELOPMENT FUND IS EFFECTIVELY A LEVY TAX LEVY SUB FUND
IT WAS FUNDED WITH LEVY PROCEEDS
OKAY
I DIDN'T REALIZE THAT
THANK YOU
YEAH
HOW YOU BUCKET THEM? IN THIS CASE, WE ASSUMED IT TO BE LEVY SOURCES
THIS IS ONE OF THE THINGS, THOUGH, THAT WE'VE HAD KIND OF CONVERSATIONS
I WANT TO MAKE SURE THAT WE'RE CONSISTENT
AS WE LOOK AT THE CHANGES THAT HAVE OCCURRED IN THE LEVY, THAT WE ARE ALLOCATING THE SAME THINGS TOWARDS LEVY EXPENSES, AT LEAST CATEGORICALLY
AND SO ARE THERE ANY MAJOR CHANGES IN HOW WE'RE DESCRIBING THAT ALLOCATION
LET'S PLEASE MAKE NOTE OF THEM
SO IF ANY CHANGES YEAR TO YEAR ARE REFLECTIVE OF ACTUAL CHANGES RATHER THAN JUST NAMES
YEAH, I DON'T THINK THIS REPRESENTS A CHANGE IN METHODOLOGY, AND I KNOW THERE'S MUCH MORE INFORMATION TO COME IN THIS PRESENTATION AND IN THE APPENDICES
SO IN TERMS OF USES OF THE LEVY AND THE RELATED FUNDS, LIKE YOU SAY, THE DEVIL'S IN THE DETAIL AND THAT'S BEEN PROVIDED IN THE APPENDICES, BUT POINT TAKEN AND I'LL GET BACK TO YOU ON YOUR MORE GRANULAR BREAKOUT
I'M HAPPY TO DO THAT
THANK YOU
SO JUST LASTLY, WE'VE GOT ABOUT 36 MILLION IN OTHER FUNDING SOURCES
THIS IS MADE UP PRIMARILY OF CAPITAL GRANTS, SO THIS INCLUDES BOTH PORT OF SEATTLE GRANTS AS WELL AS THE PORT 50% SHARE OF NORTHWEST SEAPORT ALLIANCE CAPITAL GRANTS
IT ALSO ASSUMES A SMALL AMOUNT
I THINK IT'S ABOUT 2.7 MILLION HARBOR MAINTENANCE TAX REVENUES FOR 2022, WHICH IS CONSISTENT WITH THE AMOUNT THE PORT RECEIVED IN 2021
AS A REMINDER, NORTHWEST OF BERLIN STAFFED PROVIDED A DETAILED BRIEFING ON THE HMT TO THE MANAGING MEMBERS BACK IN MAY
WE'RE USING THE TERM HARBOR MAINTENANCE TAX HERE GENERICALLY
THIS IS MEANT TO INCLUDE FUNDS OTHERWISE DESIGNATED UNDER THE WATER RESOURCES REFORM AND DEVELOPMENT ACT
AT THIS POINT, THERE STILL REMAINS A LOT OF UNCERTAINTY WITH REGARDS TO THE FUNDS IN TERMS OF AMOUNTS, TIMING, PROJECT ELIGIBILITY, AS WELL AS THE COORDINATION BETWEEN THE PORT AND THE NORTHWEST SEAPORT ALLIANCE
WE EXPECT TO KNOW MUCH MORE ON THE STATUS OF FUTURE HMT SOMETIME NEXT YEAR, BUT FOR THE CURRENT PLAN OF FINANCE, SUPPORT HAS NOT ASSUMED ANY REALLY MATERIAL HMT BEYOND THE TWO TO 3 MILLION IN 2022
WE VIEW THIS AS A CONSERVATIVE APPROACH WITH SIGNIFICANT POTENTIAL UPSIDE, AND OBVIOUSLY THE COMMISSION WILL HAVE LATITUDE ON THE USE OF ANY HMTS GOING FORWARD
NEXT SLIDE, PLEASE
SO THIS SLIDE OUTLINES SOME POTENTIAL SENSITIVITIES
THIS PLAN OF FINANCE, LIKE ANY PLAN OR FORECAST, WILL HAVE CHANGES
THERE ARE SEVERAL SENSITIVITIES THAT WE'VE OUTLINED WITHIN OUR PLAN, BOTH POSITIVE AND NEGATIVE, AND WE'VE SUMMARIZED A FEW ON THIS SLIDE
JUST TOUCH A COUPLE OF THEM
BRIEFLY, THE COMMISSION HAS BEEN BRIEFED BY THE OPERATING DIVISIONS OVER THE PAST SEVERAL WEEKS AND THE COMMON THEME THAT WHILE WE HOPE THE PORT HAS RECOVERED FROM THE PORT OF THE PANDEMIC, FINANCIALLY SPEAKING, WE HAVE NOT FULLY RECOVERED IN TERMS OF THE REVENUE PICTURE
SO THERE REMAINS CERTAIN SENSITIVITIES TO REVENUES AS WE CONTINUE TO RECOVER BOTH ON THE UPSIDE AND DOWNSIDE
ADDITIONALLY, THE PORT WILL NEED TO MANAGE BRINGING BACK ONLINE MANY OF THE COSTS, INCLUDING STAFFING THAT WERE DEFERRED IN RESPONSE TO THE PANDEMIC
SO WE VIEW THIS AS CRITICAL TO FULFILLING THE VARIOUS PORT WIDE INITIATIVES AND MEETING THE INCREASING NEEDS OF THE ORGANIZATION AS A WHOLE
THAT'S MADE EVEN MORE CHALLENGING IN LIGHT OF THE PORT OF INFLATIONARY ECONOMIC ENVIRONMENT THAT WE'RE DEALING WITH AND WHETHER THOSE COSTS INCREASES THAT WE'RE SEEING ARE PERMANENT OR MORE TEMPORARY TRANSITORY
AS THE EXPERTS LIKE TO SAY, REMAINS SOMEWHAT UNCERTAIN
WE ALSO HAVE SOME SENSITIVITIES AROUND OTHER CAPITAL FUNDING SOURCES
FOR EXAMPLE, WE TALKED ABOUT THE HMT
SPECIFICALLY, WE FEEL THAT THERE IS SOME POTENTIAL POSITIVE UPSIDE THERE
BUT ON THE FLIP SIDE, WE HAVE INCLUDED CERTAIN NORTHWEST SEAPORT ALLIANCE GRANT FUNDING IN OUR PLAN OF FINANCE, SOME OF WHICH HAS NOT YET BEEN FULLY SECURED
SO THERE'S SOME DOWNSIDE RISK THERE
BUT BIG PICTURE, WE VIEW THIS FUNDING PLAN AS BEING BALANCED IN TERMS OF MANAGING THE UPSIDE AND THE DOWNSIDE
NEXT SLIDE, PLEASE
SO SLIDE 14
YOU WILL HAVE SEEN BEFORE THE FORECAST OF PORTWIDE REVENUE BOND DEBT SERVICE COVERAGE
THIS IS A REALLY IMPORTANT OUTCOME OF OUR PLAN OF FINANCE DEBT SERVICE COVERAGE
SPECIFICALLY, REVENUE BOND DEBT SERVICE COVERAGE IS AN INDUSTRY STANDARD MEASURE OF FINANCIAL SUSTAINABILITY, AND IT'S A METRIC THAT RATING AGENCIES AND INVESTORS HEAVILY EMPHASIZED
SO THE PORT FORECASTED DEBT SERVICE COVERAGE LEVELS SHOWN IN THE GRAPH ARE CONSISTENT WITH OUR STRONG COVERAGE LEVELS, WHICH ARE A SIGNIFICANT DRIVER BEHIND THE PORT STRONG CREDIT RATINGS, WHICH ARE ALSO FOUND IN THE APPENDICES
EXCUSE ME
SO ONE IMPORTANT TAKEAWAY OVER THE PAST YEAR IS THAT WHILE THE PANDEMIC HAS CREATED SIGNIFICANT FINANCIAL CHALLENGES FOR A LOT OF ENTITIES, INCLUDING THE PORT, WE WERE ABLE TO SUCCESSFULLY MAINTAIN OUR EXISTING REVENUE BOND CREDIT RATINGS THROUGHOUT, WHICH GREATLY AIDED IN A SUCCESSFUL BOND FINANCING BACK IN JUNE
NEXT SLIDE, PLEASE
COMMISSIONER STEINBRUECK HAS A QUESTION
YES, BUT HE IS A MUTED QUESTION
IT'S LIKE YOUR MUTED COMPLEXION
THERE YOU GO
I JUST WANT TO UNDERSTAND FULLY THIS DOWNWARD TREND HERE AND WHAT THAT IMPLIES
IS THAT A POSITIVE TRENDING DOWNWARD, OR IS THAT LIKE A TIGHTENING OF THE BELT HERE IN TERMS OF DEBT SERVICE, BOND, DEBT SERVICE? YEAH, I DON'T KNOW THAT
AND ELIZABETH, FEEL FREE TO JUMP IN HERE
I DON'T KNOW THAT THE LEVELS ACROSS THE BOARD ARE IN LINE WITH OUR EXPECTATIONS, OUR GOALS, AND WHAT RATING AGENCIES AND INVESTORS WOULD EXPECT TO SEE
I THINK THE MOVEMENT YOU SEE YEAR TO YEAR IS DRIVEN BY A NUMBER OF THINGS I THINK WE'VE HAD OBVIOUSLY A LOT OF AS WE FUND THE AIRPORT CIP, WE'RE BRINGING ONLINE A LOT OF NEW DEBT AND A LOT OF NEW DEBT SERVICE
AND SO THAT CAPITAL PLAN IS OBVIOUSLY QUITE ROBUST
AND SO THEY'RE TARGETING DEBT SERVICE COVERAGE OF I THINK IT'S WHAT WAS IT, ONE FOUR EARLY ON
AND I THINK THEY HAVE A MINIMUM OF ONE, TWO, FIVE
SO WE WOULD EXPECT AS TIME GOES ON TO BE TREND
OBVIOUSLY, THE AIRPORT IS THE BIGGEST DRIVER OF PORTWIDE DEBT SERVICE COVERAGE THAT WE WOULD BE TRENDING DOWNWARD TOWARDS THEIR COVERAGE TARGETS
BUT LOOKING AT THE NUMBERS THEMSELVES, EACH AND EACH OF THE FIVE YEAR PERIODS, THERE'S NOTHING CONCERNING ABOUT ANY OF THOSE, IN FACT, RELATIVE TO LAST YEAR, WHICH ISN'T A PERFECT COMPARISON
THESE ARE ALL BETTER THAN WHAT THEY WERE THIS TIME OF YEAR AGO, MAYBE 15 BASIS POINTS BETTER
AND WE CAN GIVE YOU ADDITIONAL INFORMATION IF THAT'S HELPFUL
YOU CAN ADD ANYTHING YOU FEEL WOULD BE HELPFUL
THANK YOU
I THINK YOU'RE ON MUTE
COMMISSIONER CHO? STILL ON MUTE
SORRY
SCOTT CAPTURED IT
WELL, THE COVERAGE IS PRIMARILY DRIVEN BY THE AIRPORT
I WOULD SAY THE UPS AND DOWNS ARE NOT SIGNIFICANT GIVEN THAT THE OVERALL COVERAGE IS WELL WITHIN EXPECTATIONS
IT WOULD BE GOOD TO HAVE SEEN THE PREVIOUS COUPLE OF YEARS JUST TO SHOW TO YOUR POINT THAT WE ARE DOING BETTER THAN THE BEST TWO
YEAH, AND WE CAN CERTAINLY PROVIDE IT'S A LITTLE BIT OF AN APPLES ORANGE COMPARISON TO SHIFTING FIVE YEAR PERIOD
OBVIOUSLY, YOU'RE LOOKING AT ACTUAL DEBT SERVICE COVERAGE
WE WERE GREATLY AIDED BY THE CARES
PROCEED
SO IT HELPS TO EXPLAIN SOME OF THE CLUNKINESS LOOKING BACKWARDS, BUT, YEAH, WE CAN PROVIDE MORE INFORMATION ON THAT
BUT I THINK THE TAKEAWAY HERE IS THESE RESULTS ARE STRONG
THESE ARE WHAT WE WOULD HOPE, AND WE'RE BETTER THAN WHAT WE EXPECTED A YEAR AGO
EXCELLENT
MR CHOW, DID YOU HAVE A QUESTION? YEAH, JUST A QUICK QUESTION
AT WHAT POINT WOULD WE BE NERVOUS? WHAT IS THE THRESHOLD OR THE MINIMUM DEBT COVERAGE RATIO THAT WE WOULD NOT WANT TO FALL BELOW, SO TO SPEAK
DO WE HAVE ONE? THERE'S NOT AN ABSOLUTE ONE, BUT I WOULD SAY THAT ONCE WE ARE CONSISTENTLY BELOW 1.4 TIMES ON A COURT WIDE BASIS, WE WOULD PROBABLY WANT TO UNDERSTAND WHAT'S DRIVING THAT, IF NECESSARY, TAKE SOME CORRECTIVE ACTIONS GENERALLY, IF WE HAVE A YEAR OR EVEN A COUPLE OF YEARS AND THERE'S AN EXPLANATION FOR WHY WE'VE HAD A TEMPORARY DROP, THAT'S NOT A PROBLEM
BUT IF WE'RE SEEING THAT WE HAVE CONSISTENTLY LOW COVERAGE AND I THINK AS WE GET SOMEWHERE BELOW ONE, FOUR IS WHEN WE WOULD START TO REALLY WANT TO HAVE THAT DEEPER DIVE AND LOOK AT OUR COVERAGE
GREAT
THANKS, ELIZABETH
IF WE CAN MOVE TO THE SLIDE 15, PLEASE JUST TO PUT ON YOUR RADAR A FEW FINANCE INITIATIVES AND I WON'T GO THROUGH ALL OF THESE
I KNOW WE'VE GOT SOME LEVY INFORMATION TO DISCUSS, BUT THIS IS JUST TO GIVE YOU ALL SOME ADVANCED NOTICE OF SOME INITIATIVES THAT MAY BE BROUGHT FORWARD TO YOU ALL IN THE NEXT YEAR OR SO
AS I MENTIONED AT YOUR NOVEMBER 9 COMMISSION MEETING HERE IN A FEW WEEKS, WE'LL INTRODUCE THE PROPOSED 2022 GEO BOND ISSUE
THESE BONDS WILL SERVE A FEW PURPOSES, INCLUDING REFUNDING OUTSTANDING BONDS FOR DEBT SERVICE SAVINGS, POTENTIALLY REFUNDING OUTSTANDING COMMERCIAL PAPER, AND TO PROVIDE NEW FUNDS IN SUPPORT OF THE NON AIRPORT CIP
SO THAT GOES BACK TO SLIDE TWELVE
IT WILL BE THE FIRST TRANCHE OF GEO BOND FUNDING TO HELP FUND THE NON-AIRPORT CIP
WE CURRENTLY ESTIMATE THE NEW MONEY WILL BE IN THE RANGE OF MAYBE 75 MILLION
IT WILL PRIMARILY BE IN SUPPORT OF REMAINING T FIVE INVESTMENTS AND PEER 66 SHORE POWER
THERE MAY BE OTHERS, BUT THOSE TWO WERE FLAGGED INITIALLY
WE'RE ALSO LOOKING AT THE AIRPORT
WE DO HAVE SOME EXISTING AIRPORT BONDS THAT WILL BE CALLABLE IN 2022 THAT WE EXPECT TO BE IN THE MARKET TO REFUND FOR DEBT SERVICE SAVINGS
WE MAY ALSO LOOK TO ADD AIRPORT NEW MONEY PROCEEDS TO FUND THEIR CIP
AT THAT TIME
WE'LL KNOW MORE A YEAR END ON WHAT THOSE NEEDS MIGHT BE
WE HAVE ABOUT 11 MILLION OF GO BONDS THAT ARE SCHEDULED TO MATURE IN 2023
THEY'RE ACTUALLY CALLABLE NEXT YEAR
SO WE EXPECT TO JUST PAY THOSE BONDS OFF EARLY AND SAVE ABOUT 436,000 OF INTEREST COSTS
AND THE LAST ITEM I WAS GOING TO MENTION, AS YOU MAY RECALL, IN 2020, THE PORT OBTAINED THE LINE OF CREDIT WITH JPMORGAN AND THE AMOUNT OF 150,000,000 IN RESPONSE TO ALL THE FINANCIAL UNCERTAINTIES THAT WERE CREATED BY THE PANDEMIC
TO DATE, THE PORT HAS NOT NEEDED TO DRAW ON THE LINE OF CREDIT, AND THE AGREEMENT IS SCHEDULED TO EXPIRE IN JUNE OF 2023
WE'RE CURRENTLY WORKING ON AMENDING THAT LINE OF CREDIT, WHICH WOULD EXTEND THE LINE OUT AN ADDITIONAL YEAR BUT ALSO REDUCE FEES
WE VIEW THE CONTINUATION OF A LINE OF CREDIT AS PRUDENT FINANCIAL MANAGEMENT AS WE GET NEAR WHAT WE HOPE IS THE END OF THE PANDEMIC
THE FORD FINANCIAL CONDITION AND OUTLOOK HAS IMPROVED SINCE WE ENTERED INTO THIS LINE OF CREDIT A YEAR AGO, OVER A YEAR AGO, AND THUS WE FEEL COMFORTABLE REDUCING THE COMMITMENT DOWN FROM 150 TO ABOUT 75 MILLION
BUT WE'RE ALSO EXTENDING IN THE AGREEMENT AN ADDITIONAL YEAR
IT ACTUALLY WORKS OUT MATHEMATICALLY THAT THE DROP IN FEES BASICALLY GIVES US THE EXTRA YEAR FOR FREE
I SAY FREE USE LOOSELY, BUT NO ADDITIONAL COST TO THE STATUS QUO
SO THAT'S ALL I HAVE ON THE PLAN OF FINANCE
SPECIFICALLY, I'M HAPPY TO TAKE MORE QUESTIONS
IF NOT, I'LL TURN IT OVER TO ELIZABETH TO DISCUSS THE TAX LEVY AND MORE DETAILS
WE HAVE A SHOW OF HANDS
IF THERE'S ANYBODY THAT HAS QUESTIONS AND THEN WE'LL GO ON TO THE LEVY
I DO SEE COMMISSIONER CHO
YEAH, JUST A QUICK QUESTION
AND YOU'RE MORE THAN WELCOME TO ANSWER THIS OFFLINE IF NECESSARY
BUT WHEN IT COMES TO FORECASTING SOME OF THESE REVENUES, I'M WONDERING HOW YOU GUYS ARE TAKING INTO ACCOUNT THE BREAK IN TREND OR IN ECON
WE USED TO CALL THIS A STRUCTURAL BREAK, WHERE EVERYTHING LEADING UP TO A CERTAIN POINT IS NO LONGER FACTORED IN BECAUSE YOU'VE HAD A BREAKING IN TREND
AND I'M OBVIOUSLY REFERRING TO COVID
AND SO WHEN YOU LOOK AT THIS 20, 20, 20, 26 FORECAST OF DEBT RATIO COVERAGE, I'M WONDERING IF YOU TAKE INTO ACCOUNT THAT STRUCTURAL BREAK OR IF YOU'VE JUST GONE OFF BASED ON TO FRED'S QUESTION ABOUT THE LAST TWO YEARS
YEAH, I'LL PICK A STAFF
SO I THINK THE FORECAST THEMSELVES, THOSE ARE GENERATED BY THE OPERATING DIVISIONS, THE FINANCE STAFF WITHIN EACH OPERATING DIVISION, MARITIME AND SEPARATE FROM THE AIRPORT
AND THEY EACH HAVE RISKS THAT THEY'RE TRYING TO MANAGE AROUND
SO I LOOK AT THE AIRPORT IN TERMS OF TRYING TO THINK ABOUT YOUR STRUCTURE, TRYING TO RECOVER EMPLOYMENTS BACK TO A LEVEL BEFORE COVID VERSUS SOMETHING LIKE MARITIME AND EDD, WHICH LOOKING AT 2019 ISN'T THE BEST BENCHMARK BECAUSE IT WAS ALREADY MOVING UP
THESE QUESTIONS MIGHT BE BEST ANSWERED BY THEIR FINANCE STAFF SPECIFICALLY, BUT I THINK EACH OF THE FORECASTS WEIGHS RISKS AND ADDS LEVEL OF CONSERVATISM THAT THEY FEEL APPROPRIATE
GIVEN WHERE WE ARE TODAY
WE DON'T KNOW WE DON'T HAVE THE CRYSTAL BALL, BUT I THINK WE GO THROUGH THESE FORECASTS WITH THEM TO LOOK AT UPSIDE RISKS AND DOWNSIDE RISKS AND TRY TO MANAGE THEM
YOU ALSO DON'T WANT TO SEE A FORECAST HERE THAT'S SO CONSERVATIVE
THAT'S NOT REASONABLE
SO I THINK MAYBE NOT ANSWERING YOUR QUESTIONS SPECIFICALLY ABOUT THE STRUCTURAL PART
AND ELIZABETH, IF YOU HAVE COMMENTS, FEEL FREE TO JUMP IN
BUT I THINK THIS IS SORT OF A COLLECTIVE EFFORT AMONGST FINANCE STAFF TO FIGURE OUT WHAT WE'RE COMFORTABLE WITH FORECASTING, HOW MUCH OF THESE FORECASTED REVENUES ARE REALLY LOCKED IN VERSUS SPECULATIVE AND KIND OF COME INTO AN AGREEMENT ON WHAT WE THINK IS REASONABLE
I LOOK AT THIS PLAN OF FINANCE THIS TIME NEXT YEAR, WE'LL BE DOING IT AGAIN, AND SO WE'LL HAVE BETTER INFORMATION AND NEW INFORMATION AND ADJUSTMENTS WILL BE MADE ALONG THE WAY
SO AT THIS POINT IN TIME, I THINK STAFF FEELS PRETTY COMFORTABLE WITH THE FORECAST THAT WE'VE CREATED AND SO FORTH
THE FORECASTS ARE VERY MUCH A BOTTOMS UP APPROACH
AS SCOTT NOTED, AIRPORT AND MARITIME AND ECONOMIC DEVELOPMENT HAVE PROVIDED THEIR DETAILED FORECASTS BASED ON WHAT THEY SEE THE RECOVERY TRAJECTORY
IN THE CASE OF THE AIRPORT THAT GETS TRANSLATED INTO THE EMPLOYMENT AND HOW THAT AFFECTS NON AERONAUTICAL REVENUES
THEY'VE INCLUDED THEIR EXPECTATIONS FOR THE USE OF COVETED GRANTS FOR MARITIME, THEIR EXPECTATIONS FOR THE RECOVERY OF CREWS, WHICH WON'T BE ALL AT ONCE
THAT'S ALSO GRADUAL
AND ON THURSDAY, YOU'LL HEAR MORE ABOUT THE FORECAST THAT THE ALLIANCE HAS PROVIDED TO US
SO WE INCORPORATE ALL THAT INTO THIS ANALYSIS
OKAY, THAT'S GOOD TO KNOW
I JUST KNOW THAT A LOT OF COMPANIES ARE COMPLETELY THROWING OUT ALL THE DATA FROM PRE PANDEMIC BECAUSE THEY SEE IT AS A COMPLETELY NEW TREND
POST PANDEMIC, LITERALLY, THEY'RE NOT CONNECTING THE TWO AT ALL ANYMORE, AND ESPECIALLY WHEN IT COMES TO REVENUE FORECAST AND STUFF LIKE THAT, THIS BREAKING TREND THERE'S VIEWING THE TWO ALMOST LIKE TWO ERAS AND NOT CONNECTING THE TWO
I WOULD HOPE THAT WE WERE DOING THE SAME THING
WELL, WE DID HAVE THAT ARTIFICIAL LIFE SUPPORT OF THE FEDERAL GRANTS, WHICH PERHAPS MUTED THE SITUATION, CERTAINLY DID
BUT IT'S INTERESTING TO FOLLOW UP, BUT THAT'S EVEN A FURTHER POINT FOR US TO NOT FORECAST BASED ON THAT, BECAUSE THOSE GRANTS AND THOSE PROGRAMS ARE NOT PROLONGED EITHER
SO THEY'RE NOT LONG TERM
THAT'S THE ARGUMENT THAT WE SHOULDN'T BE FORECASTING BASED ON ANY OF THOSE FACTORS
BUT I WOULD AGREE TO THE PORT, THOUGH, THAT THIS IS DONE ITERATIVELY ON AN ANNUAL BASIS
THEN WE CAN SORT OF CHECK OUR ASSUMPTIONS AND MOVE ON FROM THERE
THIS IS ALSO ASSUMING CAN SUSTAIN 3% INCREASE IN THE LEVY THAT'S ALL BUILT INTO THIS AS WELL
A LITTLE BIT OF A MODIFICATION ON THAT THAT I'LL GET INTO WHEN WE GET TO THE LEVY
BUT I DO BELIEVE OUR BUSINESSES HAVE SPENT A LOT OF TIME THINKING ABOUT WHAT THEIR POST COVID WORLD WILL BE LIKE AND MAKING ADJUSTMENTS AS BEST THEY CAN, GIVEN THE KNOWLEDGE THAT WE HAVE AND NOT JUST ASSUMING THAT THINGS WILL BE EXACTLY AS THEY WERE IN 2019
AND IF I CAN JUMP IN, MR PRESIDENT, JUST SAYING IS THAT ACTUALLY YOU'VE HEARD IN THE PRESENTATIONS FROM AVIATION AND FROM EDD AND MARITIME
WE'VE GOT SOME DATA THAT WE'RE FORECASTING
AND THEN HOW THOSE CHANGES THAT COMMISSIONER CHO WAS TALKING ABOUT? WE'RE SEEING WHERE WE ARE IN CREWS
WE'RE MAKING AN ASSUMPTION WE HAD 0%, THEN 25%, THEN WE'RE LOOKING AT 75%
SO WE'RE TRYING TO BALANCE THAT
JUST AS SCOTT SAID, YOU DON'T WANT TO BE OVERLY CONSERVATIVE AND JUST DON'T HAVE THE RESOURCES TO TAKE TO OPERATE, BUT YOU DON'T WANT TO BE OVERLY ROBUST IN THOSE ASSUMPTIONS AS WELL
SO, I MEAN, WE TAKE ALL THAT INPUT WE'VE HEARD FROM THE STAFF TO COME UP WITH OUR BEST GUESS AND THEN ADAPT TO IT WITH LEVERS TO ADAPT TO IT AS WE GO FORWARD
GOT IT
ALL RIGHT
SO IT SOUNDS LIKE YOU HAVE A SURPRISE FOR US COMING UP IN THE TEXT
LET ME DISCUSSION ON ALL EARS AND DOES THIS COMPLETE THIS? DO YOU HAVE ANY OTHER QUESTIONS? I DON'T SEE ANY ADDITIONAL HANDS AT THIS TIME
WELL, THEN, THANK YOU
GOOD TO SEE WE'RE ON A POSITIVE FOOTING
MY QUESTION TO THE COMMISSIONER CHO'S COMMENT ABOUT AT WHAT POINT DOES OUR BOND RATING GET DEGRADED? WHAT'S THE RATIO OF OUR DEBT SERVICE? YOU SAY IF WE HAD SUSTAINED A LOWER RATING FOR MULTIPLE YEARS, WHEN DO YOU SEE THAT AS ACTUALLY AFFECTING OUR BORROWING CAPABILITIES OR RATES? THE DEVELOPMENT OF A CREDIT RATING IS PART ART AND PART SCIENCE
SO THEY DO HAVE CRITERIA
THE RATING AGENCIES HAVE CRITERIA THAT THEY EVALUATE
THE DEBT SERVICE COVERAGE IS A SIGNIFICANT PART OF THAT ANALYSIS
BUT THEY ALSO LOOK DEEPER THAN JUST THE DEBT SERVICE COVERAGE
THEY LOOK AT THE OVERALL CIRCUMSTANCES
THEY LOOK AT THE ENVIRONMENT OF OUR BUSINESSES
SO, FOR EXAMPLE, THE FACT THAT OUR AIRPORT IS THE ONLY MAJOR AIRPORT IN THE REGION IS DEFINITELY IN OUR FAVOR AND GIVES US A LITTLE BIT MORE ABILITY TO WITHSTAND MAYBE A LOWER DEBT SERVICE COVERAGE THAN ANOTHER AIRPORT THAT'S COMPETING WITH OTHER AIRPORTS IN THE REGION
SO IT'S NOT CLEAR CUT
IT'S REALLY IMPOSSIBLE TO SAY
WELL, YOU REACH A CERTAIN COVERAGE LEVEL AND YOU'LL GET A DOWNGRADE
WHAT WE DO KNOW IS THAT THE LOWER THE DEBT SERVICE COVERAGE AND THE LONGER THAT IT IS AT A LOW MARK, THE MORE LIKELY WE WILL GET A DOWNGRADE
BUT PART OF THAT WOULD BE A CONVERSATION WITH MANAGEMENT ABOUT, WELL, WHY IS IT LOW IS IT SOMETHING TEMPORARY? FOR EXAMPLE, IN A YEAR WHERE WE HAVE A LARGE ENVIRONMENTAL EXPENSE THAT YEAR, OUR DEBT SERVICE COVERAGE WILL BE LOWER JUST BECAUSE OF HOW THE CALCULATION WORKS
BUT IF WE'VE BEEN SIGNALING THAT THIS IS GOING TO BE THE CASE, THIS IS AN OBLIGATION THAT WE WILL BE PAYING
AND SO THIS YEAR IT WILL BE LOW BECAUSE OF THAT OBLIGATION, AND NEXT YEAR IT WILL REBOUND, THEN THAT'S NOT GOING TO BE AN ISSUE
IF WHAT WE'RE SEEING IS YEAR AFTER YEAR, POOR MANAGEMENT, POOR DECISIONS, LIVING BEYOND OUR MEANS, SO TO SPEAK, THAT WOULD AFFECT OUR CREDIT RATING
THANK YOU
I WOULD ALSO ASSUME THAT BECAUSE KING COUNTY PROPERTY PRICES CONTINUE TO ESCALATE RAPIDLY, THAT THIS NEXT CONVERSATION WOULD ALSO HAVE REASON TO KEEP US FROM LOSING OUR CREDIT RATING, HAVING A SUSTAINED LEVY CAPABILITY
THAT'S A LEVEL OF ASSURANCE TO A RATING AGENCY, RIGHT? ABSOLUTELY
YES
THE PROPERTY TAX
AND AS I'LL MENTION AS WELL OUR BANK CAPACITY
THOSE ARE ALL THINGS THAT HAVE A POSITIVE EFFECT ON OUR CREDIT RATING, NOT JUST FOR OUR GO BONDS, BUT ALSO FOR OUR REVENUE BONDS
VERY GOOD
WELL, THEN I TEASE US UP FOR THIS NEXT CONVERSATION
THANK YOU SO MUCH
ALL RIGHT
NEXT SLIDE, PLEASE
I'LL BEGIN WITH SOME BACKGROUND
WASHINGTON PORTS ARE PERMITTED TO LEVY A TAXI ON THE PROPERTY WITHIN THE PORT DISTRICT AND FOR THE PORT OF SEATTLE
OUR DISTRICT IS THE SAME AS KING COUNTY
THE LEVY AMOUNT IS APPROVED ANNUALLY BY THE COMMISSION AS PART OF THE BUDGET PROCESS, SO IT'S A ONE YEAR APPROVAL
THE COMMISSION CAN SET A LEVY AT ANY LEVEL UP TO THE MAXIMUM ALLOWABLE WITHIN STATUTORY LIMITS
AS STEVE MENTIONED, THE PRELIMINARY PROPOSED LEVY IS 81 MILLION, WHICH REPRESENTS A 3% INCREASE COMPARED TO THIS YEAR'S LEVY
THE TABLE SHOWS THE DIFFERENCE BETWEEN THE MAXIMUM LEVY, WHICH IN 2022, THE PRELIMINARY ESTIMATE FROM THE COUNTY IS 111,000,000, AND THE PROPOSED LEVY OF 81 MILLION, AND THE DIFFERENCE BETWEEN THOSE TWO IS CALLED BANK CAPACITY
THE STATUTES RELATED TO THE LEVY ALLOW PORTS TO IF THEY LEVY LESS THAN THEIR MAXIMUM, THEY DON'T LOSE THAT ABILITY TO GO UP TO THE MAXIMUM
SO EVERY YEAR, THE MAXIMUM LEVY INCREASES WITHIN STATUTORY LIMITS, WHICH, ON AVERAGE ARE A LITTLE OR ABOUT 2%, MAYBE A LITTLE MORE THAN 2%, SO THAT INCREASES EVERY YEAR AND THAT AMOUNT THAT'S ABOVE THE ACTUAL LEVY WE CAN TAP INTO IN THE FUTURE IF THE PORT SO CHOOSES
NEXT SLIDE, PLEASE
HISTORICALLY, THE PORT HAS TAKEN A PRUDENT APPROACH TO MANAGING ITS TAX LEVY, AND THAT'S DEMONSTRATED BY THE POLICIES AND PRACTICES DESCRIBED ON THE LEFT
THOSE INCLUDE SETTING CRITERIA FOR CAPITAL INVESTMENTS THAT USE THE TAX LEVY OR GO BONDS, AND THE NEXT SLIDE WILL GO INTO THAT IN A LITTLE MORE DETAIL
IT ALSO INCLUDES HOW WE MANAGE OUR GEO BOND INDEBTEDNESS
WE'VE RESTRICTED THE GEO BOND DEBT SERVICE TO BE NO MORE THAN 75% OF THE ANNUAL LEVY, WHICH MEANS THAT THERE'S AT LEAST 25% OF LEVY THAT'S AVAILABLE IN CASH
AND THIS IS IMPORTANT IN TWO WAYS
ONE IS THAT LONG TERM DEBT IS USED FOR FUNDING LONG TERM ASSETS, BUT THE TAX LEVY HAS A BROADER USE, AND SOME OF WHAT WE USE THE LEVY FOR IS NOT NECESSARILY INVESTMENTS IN LONG TERM ASSETS
SECONDLY, ANY KIND OF DEBT, INCLUDING GO BONDS, IS A WAY TO INCREASE CAPITAL CAPACITY IN THE PORT TERM
BUT YOU ACTUALLY LOSE CAPITAL CAPACITY IN THE LONG TERM
IT'S KIND OF A BUY NOW PAY LATER, BUT YOU'RE PAYING WITH INTEREST
AND SO IT'S GREAT WHEN WE HAVE A LARGE PROJECT THAT NEEDS FUNDING IN THE NEAR TERM, BUT THEN WE PAY FOR IT OVER TIME, AND THAT ACTUALLY REDUCES THE FUTURE CAPITAL CAPACITY
AND SO MANAGING OUR DEBT IS IMPORTANT TO THE LONG TERM SUSTAINABILITY OF HOW WE MANAGE THE OVERALL TAX LEVY
AND THEN THIRDLY, IS THIS IDEA OF BANKED CAPACITY
SINCE PORTS WERE ALLOWED TO BANK CAPACITY, THE PORT HAS NEVER ACTUALLY LEVIED UP TO ITS MAXIMUM
IT'S ALWAYS RETAINED SOME CUSHION, WHICH PROVIDES ADDITIONAL FLEXIBILITY
THE PORT HAS FROM TIME TO TIME TAPPED INTO SOME OF THAT BANK CAPACITY
AND THEN OTHER TIMES LET THE BANK CAPACITY GROW
SO THESE POLICIES AND PRACTICES INFORM HOW WE APPROACH THE LEVY FOR OUR FIVE YEAR FUNDING PLAN
AS STEVE MENTIONED, WE'RE RECOMMENDING A 3% INCREASE IN 2022, BUT AFTER THAT, OUR PLANNING ASSUMPTION, ANYWAY, IS THAT THE LEVY INCREASE AT 2%
AND THE STARTING POINT WITH ANY FIVE YEAR LEVY FUNDING PLAN IS BEING ABLE TO FUND OUR CAPITAL PLAN
ONCE WE KNOW WE CAN FUND THE CAPITAL PLAN, THEN WE HAVE SOME LATITUDE WITH WHAT THE LEVY CAN BE IN TERMS OF THAT FIVE YEAR PLANNING
AND THERE WE'RE BALANCING THE INTEREST IN PRESERVING OUR PURCHASING POWER, SO KEEPING UP WITH INFLATION AND ALSO PRESERVING OUR BANK CAPACITY SO THAT 2% IS A VERY SUSTAINABLE LEVEL BECAUSE WE'RE ASSUMING THAT THE LEVY WILL INCREASE BY NO MORE THAN THE MAXIMUM LEVY INCREASES, SO THAT THE TWO ARE GOING ALONG WITH NO IMPACT ON THE BANK CAPACITY, RECOGNIZING THAT IF WE NEED TO TAP INTO THAT AT SOME POINT THAT WE CAN DO THAT
SO, COMMISSIONER FELLEMAN, YOU ARE CORRECT
THIS IS A DIFFERENT PLANNING ASSUMPTION THAN WE PRESENTED IN JULY
AND THAT'S BECAUSE WE NOW HAVE THE UPDATED REVENUE FORECAST FROM OUR BUSINESSES THAT ARE ADAPTING TO THE RECOVERY
AND SO WE DON'T SEE A NEED AT THIS POINT TO PLAN FOR A 3% INCREASE
AND I'LL JUST REITERATE THAT THE LEVY DECISION IS AN ANNUAL ONE
AND AS SCOTT MENTIONED, WE WILL BE REVISITING THIS NEXT YEAR AND COULD COME BACK WITH A DIFFERENT PLANNING ASSUMPTION BASED ON WHAT WE'RE SEEING
SO WHAT IS OUR MAXIMUM HEADROOM AT THIS POINT? WE HAVE QUITE A BIT MORE TO GO THAN JUST 3%, DON'T WE? WE HAVE ABOUT 30 MILLION OF BANK CAPACITY
SO WE'RE RECOMMENDING 81 MILLION NEXT YEAR, BUT WE COULD LEVY UP TO $111,000,000
WELL, THAT'S ENCOURAGING
GO AHEAD
I THOUGHT YOU WERE GOING TO GO THE OTHER WAY ON US WHEN YOU TALKED ABOUT OPENING THE WIDENING THE ROAD TO FIT MORE THINGS
AND I THOUGHT WE WERE CREATING THIS ALLUSION TO HAVING TO WIDEN THIS, BUT WE'RE ALWAYS HAPPY TO STAND ON YOUR BROAD SHOULDERS
SO SOMETHING WHITING THE ROAD ANYWAY, DO YOU HAVE ANOTHER PORTION OF THIS? WE STILL CAN GO ON FOR THE PRESENTATION
SO I'M DONE WITH THIS SLIDE
WE CAN MOVE TO THE NEXT ONE
THANK YOU
THIS IS THE CRITERIA THAT WE USE FOR CAPITAL INVESTMENTS FOR THE FUNDING WITH THE TAX LEVY, THERE ARE REALLY TWO DIFFERENT TYPES OF CAPITAL INVESTMENTS THAT WE MAKE
ONE IS ASSET RENEWAL AND THE OTHER IS NEW INITIATIVES
IN BOTH CASES, WE LOOK AT WHETHER THOSE INVESTMENTS CAN PAY FOR THEMSELVES OR AT LEAST PAY FOR THEMSELVES IN THE NEAR TERM
GENERALLY SPEAKING, THE INVESTMENTS AT THE AIRPORT DO
AND SO WE DON'T REALLY SEE THE TAX LEVY OR GO BONDS BEING USED AS A FUNDING SOURCE FOR THE AIRPORT
WE ALSO LOOK AT THE ECONOMIC BENEFIT THAT THE INVESTMENTS DERIVE, AND MOST OF OUR INVESTMENTS DO PROVIDE SOME ECONOMIC BENEFIT
AND THEN WE LOOK AT THE LOCATION
SO WE'VE BEEN USING TAX LEVY FOR NORTH HARBOR INVESTMENTS, BUT NOT SOUTH HARBOR
WE DO HAVE A QUESTION FROM COMMISSIONER STEINBRUECK
THANK YOU
I WANTED TO ASK ABOUT STRATEGIC INITIATIVES AND WHAT EXAMPLES CAN YOU PROVIDE FOR THAT AND UNDERSTAND THAT BETTER? AND WITH SOME WITH NO OR LONG TERM PAYBACK
AND I GUESS PAYBACK CAN BE MEASURED IN DIFFERENT WAYS
BUT I ASSUME YOU'RE TALKING ABOUT FINANCIAL PAYBACK
YES, I AM
ONE EXAMPLE WOULD BE THE TERMINAL FIVE MODERNIZATION THAT GOES BEYOND JUST RENEWAL AND REPLACEMENT
THAT'S REALLY A NEW INITIATIVE
AND ANOTHER MIGHT BE TERMINAL NINE TO ONE UPLANDS WHERE WE'RE CREATING A NEW INDUSTRIAL PARK, SO TO SPEAK, WHICH WILL HAVE A LONG PAYBACK
SO THOSE ARE THE KINDS OF THINGS THAT MIGHT USE THE TAX LEVY
OKAY, NEXT SLIDE, PLEASE
THE TAX LEVY CAN ACTUALLY BE USED FOR ANY PORT PURPOSE EXCEPT THE PAYMENT OF REVENUE, BOND, DEBT SERVICE
AND OVER TIME, THE PORT HAS IN FACT USED THE TAX LEVY FOR MULTIPLE TYPES OF INVESTMENTS IN THE REGION, INCLUDING MARITIME INFRASTRUCTURE, AND THAT'S MARITIME, BROADLY SPEAKING, MOSTLY VARIOUS SEAPORT AND IMPROVEMENTS IN THE SEATTLE HARBOR
WE'VE ALSO USED IT FOR ENVIRONMENTAL SUSTAINABILITY, REGIONAL TRANSPORTATION MOBILITY, AND THAT'S BEEN PAID LARGELY FROM THE TRANSPORTATION INFRASTRUCTURE FUND THAT WAS SET UP USING TAX LEVY DOLLARS TO BE SURE TO HAVE FUNDS TO MEET OUR OBLIGATIONS UNDER VARIOUS REGIONAL TRANSPORTATION COMMITMENTS
MOST RECENTLY, THE WEST SEATTLE BRIDGE REPAIR WILL BE PAID FOR FROM TRANSPORTATION INFRASTRUCTURE FUND WITH TAX LEVY DOLLARS AND THEN NON CAPITAL INVESTMENTS IN THE COMMUNITY, INCLUDING WORKFORCE DEVELOPMENT, ECONOMIC DEVELOPMENT PARTNERSHIP GRANTS, TOURISM, AND VARIOUS EQUITY AND SUSTAINABILITY INITIATIVES
SO WHAT ARE THE CRITERIA FOR THE REGIONAL TRANSPORTATION MOBILITY? HOW DO WE DEFINE REGIONAL? IT'S REALLY A COMMISSION
THE COMMISSION OR THE PORT ENTERS INTO AGREEMENTS
WE'VE HAD AGREEMENTS WITH THE STATE WITH THE CITY
SO THE ALASKA VIADUCT REPLACEMENT PROJECT
WEST SEATTLE BRIDGE FAST CORRIDOR PROJECTS SAFE AND SWIFT HEAVY HALL CORRIDOR, SO THEY TEND TO BE WITHIN THE PORT'S BOUNDARIES, THOUGH THEY DON'T NECESSARILY HAVE TO BE
SO IT'S PROJECTS THAT THE PORT DEEMS TO BE OF VALUE TO THE PORT, AND IT'S IN PARTNERSHIP WITH OTHER REGIONAL ENTITIES
I THINK THAT'S KEY, THOUGH IT IS A LARGE ENOUGH PROJECT THAT IT'S A MULTI PARTY INVESTMENT
THIS ALLOWS US TO BRING SOMETHING TO THE TABLE LIKE WEST SEATTLE BRIDGES
SO IS THIS JUST AN EXISTING FUND THAT COLLECTS INTEREST? YES
IT WAS SET UP A NUMBER OF YEARS AGO TO PROVIDE SOME FUNDING FOR THE SR 99 TUNNEL, BUY A REPLACEMENT PROJECT
AND EVERY TIME THE PORT HAS AGREED TO SUPPORT ONE OF THESE REGIONAL PARTNERSHIPS FOR TRANSPORTATION IMPROVEMENTS, WE'VE SET ASIDE MORE FUNDS SO THAT THOSE WILL BE AVAILABLE WHEN THOSE PROJECTS NEED THEM
SO THAT FUND DOESN'T NEED TO BE REPLENISHED AT TIMES, IT DOES
YES, FROM TIME TO TIME, WE HAVE NO NEED TO ADD TO THE FUND AT THIS POINT
AND THERE IS A DETAIL IN THE APPENDIX THAT SHOWS THE FUND AND THE VARIOUS INITIATIVES THAT ARE BEING PAID FOR
FROM THAT, ELIZABETH, WE ADD TO IT WHEN WE HAVE AN OBLIGATION
IS THAT ANOTHER WAY TO PUT IT WHEN WE ENTER INTO SOMETHING CORRECT? THAT'S CORRECT
WHEN WE HAVE A NEW OBLIGATION, WE ADD TO IT WITH THE WEST SEATTLE BRIDGE
HOWEVER, BECAUSE OUR OBLIGATION FOR LANDER STREET ENDED UP BEING LESS THAN WHAT WE HAD INITIALLY ANTICIPATED, WE DID NOT NEED TO ADD ADDITIONAL FUNDS TO THE TRANSPORTATION INFRASTRUCTURE FUND
WE HAD ENOUGH IN THAT FUND ALREADY TO PAY FOR THE COMMITMENT FOR THE WEST SEATTLE BRIDGE
THANK YOU
NEXT SLIDE, PLEASE EXCUSE ME, BUT ONE OF THE THINGS THAT WAS MENTIONED AT A PREVIOUS MEETING WAS WHETHER WE WERE GOING TO PUT SOME STAFF TIME ON TO ADMINISTER THOSE COMMUNITY PROGRAMS, AS IF THAT WAS WHETHER STAFF WOULD BE INCLUDED AS A LEVY EXPENSE
AND I DON'T THINK THAT WAS DONE IN THE PAST
IS THAT WHAT'S ENVISIONED HERE? YES, YOU'RE CORRECT
ON BOTH COUNTS
IT HAS NOT BEEN THE PORT'S PRACTICE TO PAY FOR STAFF TIME WITH THE TAX LEVY
WE HAVE INCLUDED IT IN THIS CURRENT FUNDING PLAN FOR LEVY USE
NOW, IF I CAN JUST ADD TO THAT, COMMISSIONER CHO OF THAT IS BEING TRANSPARENT BECAUSE THAT POSITION WOULD BE FUNDED IN ORDER TO SUPPORT THOSE FUNDS
AND SO THE THOUGHT PROCESS IS JUST MORE TRANSPARENT
I MEAN, WE'RE OPEN TO FEEDBACK ON THAT
IF THAT'S SOMETHING, WE CAN ALWAYS FIGURE OUT ANOTHER WAY TO DO THAT OR ACCOUNT FOR THAT
BUT WE JUST THOUGHT IN MY MIND, IT'S JUST BEING MORE TRANSPARENT ON THE USES OF THOSE FUNDS AND HOW WE'RE ADMINISTERING THOSE FUNDS
I THINK OBVIOUSLY, IN ORDER TO PULL OFF THOSE PROGRAMS, YOU NEED PEOPLE TO DO IT
AND THEY'RE NOT REVENUE GENERATING PROGRAMS THEY'RE SOCIAL LICENSE GENERATING PROGRAMS BUT I THINK IT WAS SOMEWHAT WAS JUST A QUESTION I HAD WAS THE NUMBER OF FTES THAT WERE BEING ASCRIBED TO DOING THAT
AND SOME OF IT WASN'T JUST LIKE THE PROGRAMS THEMSELVES, BUT LIKE CPO AND THINGS LIKE THAT JUST TO FINANCIALLY ADMINISTER THE PROGRAMS YEAH, IT IS
WE'D BE GLAD TO PROVIDE MORE DETAIL ON THAT
BUT OUR STAFF IS ALREADY OVERBURDENED
WE'RE PLAYING CATCH UP WITH THE DIFFERENT STAFF FROM CPO AND OTHER BOTH THE MANAGING OF THE PROGRAM AND THE CPO STAFF
SO WE'D BE GLAD TO PROVIDE MORE DETAIL ON THAT
BUT THAT'S OUR ANALYSIS SHOWS THAT
ALL RIGHT
IT WAS FROM THE CLARITY PERSPECTIVE
I'M NOT SAYING IT'S A BAD IDEA
I JUST WANTED TO KNOW THAT THIS IS A NEW USE AND JUST WANT IT FOR THE TRANSPARENCY PERSPECTIVE
YOU SHOWED A SLIDE SOME TIME AGO
THAT WHAT WE'RE DOING FOR COMMUNITY PROGRAMS OVER THE LAST FIVE YEARS, SO EXCEEDED WHAT HAD BEEN DONE THE PREVIOUS DECADE
WE ARE INVESTING MORE AND MORE INTO OUR SURROUNDING COMMUNITIES, AND HENCE THERE IS A STAFF CAPACITY INVOLVEMENT ASSOCIATED WITH THAT
SO I SEE THIS IS FULLY APPROPRIATE, BUT THE TREND IS VERY DRAMATIC, AND SO I THINK HIGHLY
JUSTIFIABLE
ALL RIGHT, THEN MOVING ON
THE PORT HAS ALWAYS CARED ABOUT THE IMPACT ON TAXPAYERS
THIS TABLE SHOWS THAT IMPACT
SO THE 2021 TAX LEVY 78.7 MILLION TRANSLATED INTO A MEDIAN HOMEOWNER PAYING $72 AND THE MEDIAN HOME VALUE $600,000 THAT COMES FROM THE COUNTY
AND AS DOES THE LEVY RATE FOR 2022, WE ONLY HAVE PRELIMINARY INFORMATION FROM THE COUNTY
SO WE'VE USED THEIR PRELIMINARY ASSESSED VALUE TO CALCULATE A LEVY RATE OF $0.11, AND WE'VE CALCULATED A MEDIAN HOME VALUE OF $640, SO INCREASE IN THE HOME VALUE, WHICH I THINK WE'VE ALL SEEN
BUT THAT STILL TRANSLATES INTO A $72 IMPACT TO THAT MEDIAN HOME OWNER
AND THAT'S BECAUSE THE ASSESSED VALUE IS GOING UP BY MORE THAN THE PORT PORTS TAX LEVY
IF YOU SHOW SOMEONE FROM ANY OTHER PART OF THE COUNTRY THAT THAT HOUSE IS WORTH $640,000, THEY'D BE AMAZED
RIGHT? THE KING COUNTY MEDIAN HOME OBVIOUSLY IS COUNTYWIDE, AND IT COVERS CONDOS, TOWNHOUSES AS WELL AS SINGLE FAMILY HOMES
SO IT'S QUITE BROAD
AND IT'S ALSO DIFFERENT THAN A MEDIAN SALES PRICE
IF YOU LOOK AT MEDIAN SALES PRICES, THOSE TEND TO BE HIGHER THAN THE MEDIAN HOME VALUE
YOU TOOK A PICTURE OF MY HOUSE, ACTUALLY
ALL RIGHT, THEN
THANK YOU
WE DO HAVE A QUESTION FROM COMMISSIONER CHO, SO I HAVE A QUESTION
ELIZABETH MIGHT BE ABLE TO HELP ME OUT
WHY DO WE FRAME THE CONVERSATIONS AROUND TAX LEVIES AROUND PERCENTAGES? SHOULDN'T IT BE ABSOLUTE DOLLAR AMOUNT? BECAUSE TO YOUR POINT HERE, IT'S ACTUALLY MISLEADING WHEN YOU REFER TO PERCENTAGE
MY UNDERSTANDING IS WE TELL THE COUNTY ASSESSOR WE WANT X DOLLAR AMOUNT, AND THAT TRANSLATES TO A PERCENTAGE
IT'S NOT LIKE WE TELL THEM WE WANT 3% AND THEN THAT TURNS INTO X AMOUNT OF DOLLARS
SO I FEEL LIKE WE NEED TO CHANGE THE WAY WE TALK ABOUT THE TAX LEVY BECAUSE I FEEL LIKE WHEN WE TALK ABOUT, OH, WE'RE GOING TO DO 2% INSTEAD OF 3%
THAT MAKES IT SEEM LIKE WE'RE ACTUALLY BRINGING LESS MONEY
BUT IT DOESN'T BECAUSE TO THIS POINT HERE AT THE BOTTOM, IF PROPERTY VALUES CONTINUE TO RISE AT 3% OR 2% COULD ACTUALLY EVEN BE MORE MONEY IN ABSOLUTE TERMS SO IS THERE A REASON WHY WE KEEP REFERRING TO THE TAX LIBRARY IN TERMS OF PERCENTAGE AND NOT JUST ABSOLUTE DOLLARS? SO YOU'RE ABSOLUTELY RIGHT
THE PORT SETS A DOLLAR AMOUNT, AND THEN THE COUNTY TRANSLATES THAT INTO A MILLAGE RATE
AND THE ONLY REASON THAT THE MILLAGE RATE IS SHOWN HERE IS SO THAT YOU CAN SEE HOW WE'VE CALCULATED WHAT A MEDIAN HOMEOWNER MIGHT EXPECT TO PAY BECAUSE THAT ELEVEN CENT MILITARY IS APPLIED TO THE $640,000 HOME
AND THAT'S HOW WE GET TO THE $72
SO THE PORT DOESN'T SET THE MILITARY
YOU'RE ABSOLUTELY CORRECT
AND THE PERCENTAGE INCREASE OF 3% FROM 2021 TO 2022
WE'VE USED THAT MORE AS A WAY TO PRESERVE TO THINK ABOUT PRESERVING PURCHASING POWER
IF INFLATION FOR THE LAST FIVE YEARS, INFLATION HAS AVERAGED ABOUT JUST OVER 3% THIS YEAR, IT'S ACTUALLY HIGHER THAN THAT
SO WE LOOK AT THE PURCHASING POWER OF THE LEVY, AND WE SAY, WELL, WE'RE LOSING VALUE FROM THE TAX LEVY UNLESS WE INCREASE IT BY A CERTAIN AMOUNT
THAT'S ALONG THE LINES OF INFLATION
SO THAT'S WHY WE TALK ABOUT THE PERCENTAGE
BUT WE DON'T TELL THE LET THE COUNTY INCREASE OUR LEVY BY 3%
WE TELL THE COUNTY TO LEVY 81 MILLION
BUT ISN'T IT TRUE THAT LIKE THE PORT OF TACOMA, THEY JUST HAVE A FLAT MILITARY
AND WITH WHATEVER THE PROPERTY VALUE IS, THEY GET THAT PERCENTAGE
THAT'S HOW THEY CALCULATE THEIR TAX LEVY
THEY TAKE THAT MILLAGE RATE AND THEY USE THAT TO CALCULATE WHAT LEVY THEY ASK FOR
OKAY
SO AGAIN, IT IS A FUNNY THING THAT COMMISSION POINTS OUT
WE'RE JUST SETTING A NUMBER
SO WE'RE SAYING WE NEED $72 MILLION OR WHATEVER
WE NEED THE $81 MILLION TO FINANCE WHAT WE WANT TO DO
SO I'M JUST WONDERING WHICH BASICALLY COMES OUT TO $72 A HOME
BUT THE PERCENTAGE DOES SEEM TO BE ARBITRARY AS SOMETHING TO BE REFLECTING AS OUR WHY AREN'T WE JUST SAYING GOING FORWARD FOR THE NEXT CIP, WE WANT TO HAVE $81 TO $85 MILLION OVER THAT FIVE YEAR PERIOD OR WHATEVER AND WHATEVER THE PERCENTAGE IS IS WHAT IT IS
WE'RE GOING TO INCREASE THE AMOUNT BY I DON'T KNOW
I THINK THE PORT HERE IS THAT IF WE MAKE A COMMITMENT TO RAISE 3% EVERY YEAR, WE DON'T ACTUALLY KNOW HOW MUCH THAT'S GOING TO TURN OUT TO BE
MY UNDERSTANDING BEFORE I GOT HERE WAS THAT WE HAD COMMITTED TO RAISE 3% FOR WHAT, FOUR OR FIVE YEARS
RIGHT
BUT BASED ON MY UNDERSTANDING OF THIS, WE DON'T KNOW WHAT THAT ACTUALLY TURN LIKE IT'S ARBITRARY
WELL, NO, LET ME JUMP IN THERE
ELIZABETH, CORRECT ME IF I'M WRONG
WE PLAN FOR THE 3% INCREASE AS WE LOOK AT THAT
WHAT THAT FITS INTO OUR FIVE YEAR SPENDING PLAN
FOR NOW, YOU CAN SEE IT'S 81 MILLION FROM THE LEVY FITS INTO OUR SPENDING PLAN
SO THE 3% IS FROM THE 2021 AMOUNT TO 2022
THAT IS DEFINITELY A 3% INCREASE
SO THAT HAS TO DO WITH MILITARY RATES
THAT'S AN EXACT AMOUNT
SO THERE IS A 3% THERE
THERE'S AN ACTUAL 3% THERE
RIGHT
BUT WHEN WE'RE TALKING ABOUT THE BANK, WE WERE BANKING THE PERCENTAGES THAT WE DIDN'T ACTUALLY RAISE OVER TEN YEARS
RIGHT
THE PERCENTAGES WE'RE TALKING ABOUT ARE DIFFERENT
MAYBE IT WOULD BE HELPFUL TO GO TO THE APPENDIX
PAGE 33
AUBREE IF YOU COULD FORWARD TO PAGE 33
AND THEN MICHELLE, THIS IS COMMISSIONER BOWMAN
MAY I JUMP IN AFTER ELIZABETH COMPLETES HER THOUGHTS? YES
WE ALSO HAVE COMMISSIONER CALKINS, WHO HAS A QUESTION
WE WILL TAKE THOSE
I'M NOT SURE WHAT HAPPENED TO OUR PRESENTATION
HANG ON A MINUTE
OH, HERE SHE IS
THANKS
SO THIS SHOWS THE MAXIMUM LEVY THAT INCREASES BY APPROXIMATELY 2%
AND IT'S NOT A FIXED PERCENTAGE INCREASE BECAUSE IT INCLUDES A FIXED PERCENTAGE OF 101% PLUS A FACTOR FOR NEW CONSTRUCTION
SO IN YEARS WHERE YOU HAVE A LOT OF NEW CONSTRUCTION, IT ACTUALLY INCREASES BY MORE THAN 2% IN YEARS WHERE WE'VE HAD VERY LITTLE NEW CONSTRUCTION, IT'LL BE LESS THAN 2%
BUT ON AVERAGE, THAT MAXIMUM IS GROWING ABOUT 2%
THE LEVEE ITSELF, THAT LIGHT BLUE AREA THAT CHANGES BASED ON WHATEVER THE PORT DETERMINES THE LEVY AMOUNT TO BE
AND YOU CAN SEE THAT IN THE LAST FEW YEARS, IT HAS BEEN INCREASING BY 3%
AND THAT WAS BASED ON A PLAN DEVELOPED IN 2019 TO FUND A NUMBER OF CAPITAL INVESTMENTS AND TO REGAIN SOME OF THE PURCHASING POWER THAT WE HAD LOST FROM MANY YEARS OF NOT INCREASING THE LEVY AND EVEN AT TIMES DECREASING IT
SO THAT DARKER BLUE AREA
THAT'S THE BANK CAPACITY
THAT'S THE DIFFERENCE THAT THE PORT CAN TAP INTO BUT DOESN'T HAVE TO
MR COMMISSION PRESIDENT, I DO HAVE COMMISSIONER CALKINS AND COMMISSIONER BOWMAN IN THAT ORDER
VERY GOOD
AND I MIGHT HAVE TO HAND THIS MEETING OF THE COMMISSIONER CALKINS HERE IN A MOMENT
THERE'S A SEAPORT ALLIANCE EMERGENCY MEETING BEING CALLED
I BELIEVE AT FIVE, BUT I'LL CONFIRM THAT IN THE MEANTIME, COMMISSIONER CAUCUS
YEAH
THANK YOU
AND I HAD A COUPLE OF OTHER QUESTIONS, BUT I WANT TO JUST SORT OF GIVE MY OWN COMMENT TO THAT QUESTION AROUND
I FEEL BAD FOR ELIZABETH BECAUSE SHE HAS BEEN WORKING OVER THE LAST THREE YEARS TO FIND A WAY THAT WORKS FOR US
AS COMMISSIONERS UNDERSTAND THE INCREASES TO THE LEVY AND HOW IT'S CALCULATED AND ALL THAT STUFF
SO I WANT TO APPRECIATE THAT SLIDE THAT YOU WERE SHOWING EARLIER
I DON'T KNOW IF YOU CAN GO BACK TO IT, BUT I ACTUALLY FEEL LIKE THAT CAPTURES ONE OF THE REALLY KEY POINTS THAT I'VE BEEN TRYING TO MAKE, WHICH IS THE IMPACT ON ANY PARTICULAR HOUSEHOLD IN THE PAST
AS WE'VE TALKED ABOUT PERCENTAGE INCREASE, I FEEL LIKE THAT'S A PERCENTAGE INCREASE IN THE RECEIPT OF FUNDS TO THE PORT, BUT MAY NOT CORRELATE TO THE ACTUAL IMPACT FOR A PARTICULAR HOMEOWNER BECAUSE OF TWO VARIABLES
ONE IS THE TOTAL NUMBER OF HOMES IN KING COUNTY, WHICH PARTICULARLY OVER THE LAST DECADE, HAS INCREASED SIGNIFICANTLY AND THE VALUE OF THOSE HOMES IN KING COUNTY, WHICH IS FAR EXCEEDED INFLATION AND THE AMOUNT THAT WE'VE BEEN ASKING FOR
SO I THINK THAT'S A REALLY INTERESTING POINT
WE ARE ASKING FOR A REAL INCREASE OF 3%, BUT THE ACTUAL IMPACT OF HOMEOWNERS IS THE NUMBER STAYING THE SAME $72 TO $72, SO THAT'S I THINK REALLY IMPORTANT
BUT CAN I PIVOT TO QUESTIONS ON DIFFERENT TOPICS? IS THAT OKAY
SO I'LL ASSUME THAT'S ALL RIGHT
THE FIRST IS I WANT TO ASK WE'VE BEEN PREPARING FOR A MEETING ON THE 28TH WITH THE SEAPORT ALLIANCE, IN WHICH WE'VE BEEN GOING OVER BUDGET FIGURES, BOTH ACTUALS FROM THIS YEAR AND FORECAST FOR NEXT YEAR
AND WE'RE SEEING SOME VERY GOOD NUMBERS RIGHT NOW MONTHLY NUMBERS
AND I'M WONDERING IF WE'RE BEGINNING TO SEE IF THOSE NUMBERS ARE GOOD ENOUGH OR SIGNIFICANT ENOUGH TO HAVE ALTERED IN ANY WAY THE FORECAST THAT YOU GUYS ARE PUTTING TOGETHER FOR 2022 OR IF IT'S JUST TOO EARLY OR TOO TENUOUS TO BE ABLE TO INCLUDE THOSE SIGNIFICANT IMPROVEMENTS IN THE CASH DISTRIBUTION THAN WE'VE SEEN
AND EVEN ARGUABLY, IN YEARS PRIOR TO THE PANDEMIC, WE HAVE WORKED WITH DAVID MORRISON
HE'S PROVIDED US HIS FIVE YEAR FORECAST, AND WE HAVE INCORPORATED THAT IN OUR FUNDING PLAN
IT'S ONE OF THE REASONS WHY WE FEEL COMFORTABLE USING THE 2% AS A LONGER TERM PLANNING ASSUMPTION, AS OPPOSED TO THE 3% THAT WE WERE LOOKING AT IN JULY
THE IMPROVEMENTS IN THE REVENUES FROM THE ALLIANCE ARE A SIGNIFICANT PART OF THAT
OKAY
GREAT
YEAH
I THINK THAT'S GOING TO BE AN INTERESTING CONVERSATION ON THURSDAY, AS WE CONSIDER HOW THOSE BETTER THAN PROJECTED REVENUES FROM THAT PARTICULAR LINE OF BUSINESS MIGHT IMPACT US IN THE LONG TERM
SECOND QUESTION IS, TWO YEARS AGO WE HAD IN OUR PLAN OF FINANCE AND OUR CIP LINE ITEM FOR 100 MILLION DOLLAR INVESTMENT IN T 46 RELATED TO THE PROPOSED CRUISE TERMINAL
I PRESUME THAT'S BEEN BACKED OUT BECAUSE WE SUSPENDED THAT
HOW HAS THAT IMPACTED THE PLAN OF FINANCE AND THE CAPITAL IMPROVEMENT PLAN? HAVE WE INSERTED NEW CAPITAL PROJECTS OR CAPITAL PROJECTS THAT SORT OF FELL BELOW THE RED LINE THAT WE HAD IN OUR PLAN OF FINANCE? HAVE WE DECIDED TO DO THOSE, OR ARE WE JUST SETTING THAT ASIDE FOR NOW AND WAITING TO SEE YOU'RE CORRECT THAT NEW CRUISE TERMINAL IS NO LONGER PART OF THE CAPITAL PROGRAM FOR THE MARITIME DIVISION
THERE ARE OTHER CHANGES TO THE CIP, FOR EXAMPLE, REDEVELOPMENT OF THAT NORTH BIRTH AT TERMINAL 46 HAS BEEN INCLUDED, AS WELL AS A NUMBER OF OTHER PROJECTS THAT ARE MOVING ALONG
THERE ARE SEVERAL INDESIGN THAT WILL LIKELY MOVE FORWARD TO CONSTRUCTION, AND SO THAT CAPITAL PLAN IS ALL FUNDED IN THIS, AS SCOTT DESCRIBED IN THE PLAN OF FINANCE, THOSE PROJECTS ARE ALL FUNDED UNDER THIS ANALYSIS
OKAY
THANK YOU
I THINK THAT'S THE EXTENT OF MY QUESTIONS FOR NOW
THANK YOU SO MUCH
THANK YOU
COMMISSIONER MOVING TO COMMISSIONER BOWMAN
SORRY, I WAS ON MUTE
I DON'T REALLY HAVE ANY QUESTIONS
I REALLY APPRECIATE THE ANIMATED DISCUSSION AROUND THE PROPERTY TAX LOVING
I WISH WE HAD A CHANCE TO HAVE A LITTLE EARLIER IN THE MEETING BECAUSE I THINK THESE ARE GREAT QUESTIONS
I AM JUST HAVING TO LET EVERYBODY KNOW I HAVE TO SIGN OFF HERE AT 05:00, SO I'M GOING TO BE EXITING THE MEETING
BUT ELIZABETH, AS ALWAYS, THANK YOU SO MUCH FOR YOUR PRESENTATION
I WILL SAY THAT I AM GOING TO BE TALKING TO MY COLLEAGUES ABOUT PUTTING TOGETHER A COMMITTEE OF CITIZENS, MAYBE FROM THE MUNI LEAGUE OR LEAGUE OF WOMEN VOTERS OR OTHER FOLKS THAT PAY ATTENTION TO MUNICIPAL GOVERNMENT TO TAKE A LOOK AT OUR POLICIES AROUND THE TAX LEVY, I DO THINK IT'S IMPORTANT FOR US WE DON'T HAVE ANY REAL CONSISTENT POLICIES WE HAVE IN THE PAST, AS YOU POINTED OUT, ELIZABETH, BUT WE HAVE EXTENDED THE USE OF THE TAX VALUE OVER THE LAST SIX TO SEVEN YEARS INTO AREAS WHERE WE'VE NEVER FUNDED BEFORE
AND WHILE I ALWAYS APPRECIATE COMMISSIONER CALKINS POINT THAT IN DOLLAR AMOUNTS, IT MIGHT APPEAR LOW, I CAN TELL YOU, AS A HOMEOWNER, MY TAX ASSESSMENT WENT UP $90,000 THIS YEAR, AND SO I'M JUST TRYING TO BE COGNIZANT OF WHAT OTHER HOMEOWNERS IN KING COUNTY ARE FACING WITH ENORMOUS INCREASES IN THEIR ASSESSMENTS AND THAT I THINK WE NEED TO BE AWARE OF THAT AS WELL
WHEN WE ARE INCREASING THE LEVY
WITH THAT, I'M GOING TO SIGN OFF
AND THANK YOU SO MUCH AGAIN TO THIS STAFF FOR THE GREAT WORK TODAY IN THIS MEETING THAT'S BEEN GOING ON SINCE 1030
REALLY APPRECIATE IT
THANK YOU, COMMISSIONER BOWMAN
I MEAN, I WAS WONDERING I TOO, HAVE TO GET ON THE ALLIANCE CALL
SO DO WE HAVE MORE PRESENTATION? I CAN JUST HAND THIS OFF TO COMMISSIONER CAUCUS IF THERE'S STILL MORE DISCUSSION TO BE HAD
WE DO HAVE A FEW MORE SLIDES, BUT WE'RE GETTING CLOSE TO THE END
OKAY
I WILL GIVE YOU ANOTHER FIVE AND THEN COMMISSIONER CHO, ARE YOU AVAILABLE TO TAKE IT ON FROM HERE? HAPPY TO DO SO
AND THEN JUST A TIME CHECK THAT IT IS 504
VERY GOOD
SO I SHOULD JUST GO
SO I'LL HAND IT OFF TO COMMISSIONER CALKINS AT THIS TIME AND I WILL READ THE LAST COUPLE OF SLIDES
THANK YOU AS ALWAYS, BUT MY OTHER HAT CALLS
SO STILL ON POOR BUSINESS AFTER 05:00, THOUGH
HAVE IT BE NOTED? THANK YOU
THANK YOU, COMMISSIONER
NEXT SLIDE, PLEASE
THIS SLIDE IS PRETTY SELF EXPLANATORY
OF THE 6.6 MILLION IN PROPERTY TAXES THE COUNTY COLLECTED LAST YEAR, ONLY 1.2% WENT TO THE PORT, ABOUT 57% GOES TO SCHOOLS AND THE REST TO OTHER MUNICIPALITIES
NEXT SLIDE, PLEASE
THIS IS AN UPDATE OF THE 2021 TAX LEVY
WHEN WE MET WITH YOU LAST YEAR, WE SHOWED YOU THE 2021 FORECAST AND THIS IS AN UPDATE OF THAT
I'LL START ACTUALLY AT THE BOTTOM
WE'RE PROJECTING AN ENDING FUND BALANCE OF 18.7 MILLION, AND THAT'S LARGELY BECAUSE OF THE TOP LINE
THE BEGINNING FUND BALANCE OF 24 MILLION ACTUALLY TURNED OUT TO BE HIGHER THAN WHAT WE HAD PROJECTED A YEAR AGO DUE TO SOME SPENDING THAT HAD BEEN DELAYED AND HAS ROLLED FORWARD
AS I MENTIONED EARLIER, IN ADDITION TO THIS TAX LEVY FUND, WE HAVE TWO OTHER FUNDS THAT HAVE BEEN ESTABLISHED AND ARE PAID FOR WITH TAX LEVY DOLLARS THAT HAVE BEEN SET ASIDE FOR SPECIFIC PURPOSES
THE HARBOR DEVELOPMENT FUND TO FUND T FIVE, WHICH WE EXPECT TO DEPLETE IN THE NEXT YEAR, AND THEN THE TRANSPORTATION INFRASTRUCTURE FUND, WHICH IS ONGOING AND INCLUDES FUNDS FROM THE TAX LEVY SET ASIDE FOR SPECIFIC TRANSPORTATION INITIATIVES
THERE ARE GREATER DETAIL ON THOSE FUNDS AND ON THE 2021 UPDATE IN THE APPENDIX
NEXT SLIDE, PLEASE LOOKING FORWARD FOR THIS FIVE YEAR PLANNING PERIOD, AND THIS IS WHAT'S BEEN INCORPORATED IN THE PLAN OF FINANCE THAT SCOTT DISCUSSED
WE SEE THE TOP LINE
THE 18.7 MILLION IS THE FUND BALANCE FROM THIS YEAR THAT CALL ROLL FORWARD INTO 2022
THE TAX LEVY COLLECTION IS THE SUM OF THE 81 MILLION THAT WE HAVE ESTIMATED FOR 2022, AND THEN THAT AMOUNT INCREASING BY 2% A YEAR FOR 23 TO 26
AND THEN WE ALSO HAVE SOME RECEIPTS FROM ENVIRONMENTAL INSURANCE COLLECTIONS AND GRANTS THAT WE'VE ESTIMATED AT $48 MILLION
THE FIRST USE OF THE LEVY IS TO PAY GEO BOND DEBT SERVICE
MOST OF THIS IS DEBT SERVICE ON EXISTING DEBT
BUT AS SCOTT NOTED, WE ARE ANTICIPATING NEW GO BONDS THAT WILL FUND 292,000,000 OF CAPITAL PROJECTS, AND THAT DEBT SERVICE IS INCORPORATED IN THAT 243,000,000 OF GEO BOND DEBT SERVICE IN THE NEXT FIVE YEARS
WE ALSO HAVE ABOUT 87 MILLION OF CASH THAT WILL ALSO BE AVAILABLE TO FUND CAPITAL PROJECTS
WE'RE ANTICIPATING 101,000,000 OF ENVIRONMENTAL EXPENSE AND 48 MILLION IN NON CAPITAL INVESTMENTS IN THE COMMUNITY
SPECIFIC THE LARGER ONES WOULD BE WORKFORCE DEVELOPMENT, ECONOMIC DEVELOPMENT GRANTS, SEATAC, CITY SAFETY, SOUTH KING COUNTY FUND
AND THEN THERE ARE A NUMBER OF SMALLER PROGRAMS THAT HAVE BEEN VERY IMPORTANT INVESTMENTS IN THE COMMUNITY
AND THERE'S DETAIL ON THESE LINE ITEMS ALSO IN THE APPENDIX
ALL RIGHT, LAST SLIDE
ANOTHER WAY THAT WE LOOK AT THE LEVY IS WHAT'S DISCRETIONARY AND WHAT'S NOT DISCRETIONARY
VERY BROADLY, WE DEEM OUR GEO BOND DEBT SERVICE AND OUR ENVIRONMENTAL REMEDIATION AS NONDISCRETIONARY
THESE ARE OUR LEGAL OBLIGATIONS AND DISCRETIONARY SPENDING IS THE CAPITAL INVESTMENTS AND THE COMMUNITY PROGRAMS THAT THE PORT CHOOSES TO DO SO FOR 2022, WE HAVE ABOUT 35% OF THE LEVY IS DISCRETIONARY
IF WE LOOK AT THE FULL FIVE YEAR PERIOD, THE AMOUNT OF DISCRETIONARY SPENDING INCREASES, AND IT INCLUDES THE NEW GEO BOND DEBT SERVICE BECAUSE THE PORT HAS DISCRETION SIMILAR TO CAPITAL PROJECTS
IF WE CHOOSE NOT TO DO THE PROJECTS, THEN WE DON'T NEED THE NEW BONDS
AND SO THERE IS DISCRETION THERE
THE NONDISCRETIONARY DECREASES AS PRIMARILY BECAUSE THE EXISTING DEBT SERVICE BEGINS TO ROLL OFF
SO THIS IS JUST ANOTHER WAY TO LOOK AT THE TAX LEVY
AND THAT'S ALL OF OUR FORMAL PRESENTATION
THERE'S A LOT OF DETAIL IN THE APPENDIX, AND WE'RE HAPPY TO ANSWER ANY QUESTIONS
THANK YOU, ELIZABETH
AS I TAKE OVER TO FINALIZE THIS, I'M GOING TO GIVE STEVE MEZZIK ONE MORE OPPORTUNITY TO SHARE ON THIS PARTICULAR TOPIC, AND THEN I'LL ASK FOR ANY MORE QUESTIONS AFTER THAT
THANKS
I APPRECIATE THE QUESTIONS AND THE INTEREST IN THIS
AND SCOTT AND ELIZABETH, THANKS FOR WALKING THROUGH THAT
I KNOW THIS REALLY IS WHERE WE INTERACT, AND WE LOOK AT EVERY YEAR HOW BEST TO DESCRIBE THIS
AND THEN REALLY, I HOPE WE PAINTED THE PICTURE THROUGH THE OTHER BUDGET PRESENTATIONS IN HERE IS THAT WE'RE STILL TAKING THE MIDDLE PATH, RIGHT? THAT WE'RE STILL THERE'S UNCERTAINTY AHEAD OF US
AND ONE THING THAT ELIZABETH DIDN'T TALK ABOUT, WE TALK ABOUT THE 3% HERE, AND YOU LOOK AT SOME OF THIS IS WHEN WE'RE LOOKING ON CERTAINTY, IT'S THAT CONSTRUCTION INFLATION GOING FORWARD
SO I WANT TO BE COGNIZANT OF THAT WHEN SHE TALKS ABOUT THAT OVERHEAD SOMETIME IN THE FUTURE ABOUT SOME OF OUR PROJECTS THAT'S GOING TO BE COMING BACK
WE'LL UNDERSTAND THAT MORE
I THINK WE'RE IN A PERIOD NOW OF SOME INFLATION, BUT THEIR SUPPLY CHAIN ISSUES AND OTHER ISSUES
BUT THE CONSTRUCTION OF THE IMPACT ON THAT OF THE PROJECTS AS WE GO FORWARD AS WELL, ESPECIALLY AS YOU MOVE FARTHER ALONG TO THAT DESIGN AND THEN INTO THE CONSTRUCTION, SOME OF THOSE IMPACTS WILL BE THERE
AND SO I KNOW THAT ON SOME OF THESE PROJECTS, WE STILL HAVE A RANGE AND WE'RE NOT THERE
BUT WE'RE DELIVERING A LOT IN 21 AND THEN IN 22 AS WELL NEXT FEW YEARS
AND WE'LL BE MOVING ON TO OTHER PROJECTS AFTER THAT TIME PERIOD
I'LL STOP THERE
COMMISSIONER, COMMISSIONER CHO OR STEINBRUECK, DO EITHER OF YOU HAVE QUESTIONS OR COMMENTS AS WE CONCLUDE THIS PRESENTATION? GO AHEAD, COMMISSIONER STEINBRUECK
WITH THIS YEAR'S PROPOSED LEVY INCREASE, WHAT DOES THE THREE IS IT 3% OR THREE POINT SOMETHING PERCENT
WHAT ADDITIONAL TAX REVENUE DOES THAT BRING IN? SO IT IS 3%
AND SO THIS YEAR'S LEVY IS NOT QUITE 78%
SO IT'S ABOUT SO IT'S ABOUT 3 MILLION MORE
SO 1,000,001%
AND THAT VARIES FROM YEAR TO YEAR, THOUGH, DOESN'T IT? THAT PERCENT
WE'VE SORT OF FIXED IT AT 3%
BUT THEN THE ACTUAL AMOUNT IS MORE EACH YEAR
CORRECT? NO, IT'S 3% OF THE PROCEEDING THE PAST YEAR'S LEVY
SO EACH YEAR IT'S A CUMULATIVE THE AMOUNT OF IT
YEAH
AND ACTUALLY, I MISSPOKE IT'S ABOUT 2.3 THE DIFFERENCE BETWEEN THE 2021 LEVY AND THE 2022 LEVY
BUT YOU'RE RIGHT THAT IF WE CONTINUED WITH 3%, THERE IS A COMPOUNDING
SO IT'S A PERCENTAGE INCREASE, NOT A DOLLAR INCREASE, COMMISSIONER CHO? YEAH
TWO QUESTIONS REAL QUICK
WELL, I GUESS ONE QUESTION AND ONE REQUEST
THE QUESTION THAT I HAVE IS THE ROOM THAT WE PRESERVE OR THE AMOUNT THAT WE BANK IN TERMS OF MAXIMUM LEVY GET FACTORED INTO OUR CREDIT RATING AND INTEREST RATE THAT WE GET ON THE GEO BONDS
SO, FOR INSTANCE, IF IT'S LIKE A DEBT TO INCOME RATIO FOR MORTGAGE IN A HOUSE WHERE WE GET A LOWER INTEREST RATE, IF WE UTILIZE LESS OF OUR LEVEL LEVY, OR IF THE BANKS KNEW THAT WE COULD IN THEORY, RAISE IT BECAUSE WE BANKED
I'M SEEING A LOT OF HEAD NONSENSE
I'M GUESSING THE ANSWER IS YES
THAT'S ACTUALLY A GREAT ANALOGY
AND WE DO GET CREDIT WITH RATING AGENCIES AND INVESTORS BECAUSE THEY SEE WE DO HAVE THAT CUSHION, WHICH ALLOWS US TO DEAL WITH EMERGENCIES BECAUSE WE HAVE THAT EXTRA CAPACITY
WE'RE NOT LEVERAGING UP TO THE FULL AMOUNT THAT WE COULD ACTUALLY, WE COULD BE SAVING MONEY BECAUSE WE'RE PAYING LESS IN INTEREST FOR THOSE YEAR LOANS
CORRECT
YOU KNOW WHAT WOULD BE HELPFUL? YEAH
I THINK WHAT WOULD BE HELPFUL IS IF YOU TOOK SLIDE 33 AND DID A COMPARISON OF ACTUAL LEVY MAXIMUM ALLOWABLE LEVY
AND IF WE WERE ON A TRAJECTORY OF 3% SO THAT WE CAN SEE THE DIFFERENCE IN HOW QUICKLY WE WOULD HIT THAT ALLOWABLE LEVEL LIMIT, I THINK THAT WOULD VISUALIZE KIND OF WHAT THIS 2% AS OPPOSED TO 3% WOULD DO AND HELP ME SEE, I SEE WHY IF WE CONTINUE ON THIS COURSE AT 3% FOR THE FORESEEABLE FUTURE, WE'RE GOING TO HIT THAT CEILING MUCH SOONER
I UNDERSTAND CONCEPTUALLY, BUT I THINK VISUALLY, IF I SAW THAT, I WOULD DEFINITELY APPRECIATE THAT
SURE
WE HAVE ACTUALLY DONE THOSE CALCULATIONS
IT TAKES ABOUT 30 YEARS AT 3%
IF YOU WERE TO SAY GO UP TO 4% ON A CONSISTENT BASIS, YOU GET THERE MUCH FASTER
I THINK IT'S MORE LIKE TEN OR TWELVE YEARS
SO IT'S A COMPOUNDING EFFECT THAT REALLY FACTORS INTO WHEN WE USE UP OUR BANK CAPACITY
SO THE 3%, WE USE IT UP MORE GRADUALLY
IT DOES TAKE ABOUT 30 YEARS BEFORE WE WOULD HIT THAT MAXIMUM, BUT YOU DO HIT IT AT SOME POINT, AND IT'S ABOUT 30 YEARS OUT
OKAY
THANKS
I APPRECIATE THAT
OKAY
AND I THINK THAT INCLUDES COMMENTS
AND IS THERE ANY FURTHER PRESENTATION, ELIZABETH, OR ARE YOU GUYS COMPLETED? WE'RE COMPLETE JUST TO GO THROUGH ALL THE SLIDES, THE SLIDES IN THE APPENDIX
SURE
I MEAN, ANYTHING TO DO TONIGHT, YOU GUYS? NO, THAT'S GREAT
BUT FOR THE COMMISSIONER CHO, THE PUBLIC, THEY ARE ALL THERE MUCH MORE DETAIL AS IN THE SLIDES
AND I SINCERELY APPRECIATE THE WORK THAT ELIZABETH AND SCOTT HAVE DONE TO PRESENT US IN A MANNER THAT HELPS US NON FINANCE MAJORS TO UNDERSTAND A VERY COMPLEX THING
I SORT OF ANALOGIZED IT TO LIKE A BRAIN SURGEON HAVING TO EXPLAIN TO US EXACTLY WHAT THEY DO IN THE OPERATING ROOM, WHICH TOOK THEM DECADES TO LEARN THEMSELVES
SO WELL DONE
THANK YOU SO MUCH
THANKS FOR MAKING THIS TRANSPARENT TO THE PUBLIC
WITH THAT, I'M GOING TO GO TO OTHER BUSINESS AND SEE IF EITHER COMMISSIONER CHO OR COMMISSIONER STEINBRUECK HAVE ANY OTHER BUSINESS
NOT TONIGHT
I DOUBT EXECUTIVE DIRECTOR METRUCK ANY OTHER BUSINESS? NO, I THINK COMMISSIONER'S PATIENCE, I KNOW THERE'S REALLY IMPORTANT DISCUSSIONS TODAY, SO I'M GLAD WE GOT THROUGH IT, BECAUSE NEXT MEETINGS ARE NOT GOING TO BE ANY LESS PACKED AGENDAS
SO THANK YOU FOR YOUR TIME AND YOUR LEADERSHIP AND YOUR ATTENTION ON THESE ISSUES
AND WITH THAT, I'M ASSUMING CLERK HART
I DON'T HAVE THE SCRIPT IN FRONT OF ME, CLERK HART
SO I DON'T BELIEVE THERE ARE ANY REFERRALS TO COMMITTEE
I DON'T HAVE ANY OTHER BUSINESS
AND I BELIEVE AT THIS POINT AT 518, WE CAN BRING THIS MEETING TO A CLOSE, AND I OFFICIALLY ADJOURN IT FROM JANE
WHO APPARENTLY WHO WANTS TO PARTICIPATE?

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