The Regular meeting scheduled for 2022-03-08 at Remote

Transcript

The Regular meeting scheduled for 2022-03-08 at Remote

THIS IS COMMISSION PRESIDENT RYAN CALKINS CONVENING THE REGULAR MEETING ON MARCH 8, 2022
THE TIME IS 10:30 A.M.
WE'RE MEETING REMOTELY TODAY VIA TEAMS TO COMPLY WITH SENATE CONCURRENT RESOLUTION 82 AND IN ACCORDANCE WITH GOVERNOR INSLEE'S PROCLAMATION 20-28
PRESENT WITH ME TODAY, OUR COMMISSIONERS CHO, FELLEMAN, HASEGAWA AND MOHAMED
WE'RE CURRENTLY GATHERING THE EXECUTIVE SESSION LINE AWAITING THE OPENING OF A PUBLIC MEETING
WE'LL IMMEDIATELY RECESS INTO THE EXECUTIVE SESSION TO DISCUSS TWO ITEMS REGARDING PERFORMANCE OF A PUBLIC EMPLOYEE AND LITIGATION OR POTENTIAL LITIGATION OR LEGAL RISK PER RCW 42 30 110 G AND RCW 42 30 110 I FOR APPROXIMATELY 55 MINUTES AND WILL RECONVENE IN THE PUBLIC SESSION AT NOON
NOW GO OVER THE EXECUTIVE SESSION
THANK YOU
THANK YOU, COMMISSIONER
WE ARE IN RECESS
GOOD AFTERNOON
THIS IS COMMISSIONER PRESIDENT RYAN CALKINS RECONVENING THE REGULAR MEETING OF MARCH 8, 2022
THE TIME IS CURRENTLY 12:04 P.M.
WE'RE MEETING REMOTELY TODAY VIA TEAMS TO COMPLY WITH SENATE CONCURRENT RESOLUTION 8402 AND IN ACCORDANCE WITH GOVERNOR INSLEE'S PROCLAMATION 20-28
PRESENT WITH ME TODAY ARE COMMISSIONER CHO, FELLEMAN, HASEGAWA AND MOHAMED
I'LL ASK THE CLERK TO DO A ROLL CALL OF ALL COMMISSIONERS TO ENSURE EVERYONE IS ON THE LINE
GO AHEAD, CLERK HART
THANK YOU
MR COMMISSIONER PRESIDENT, BEGINNING WITH COMMISSIONER CHO PRESIDENT
THANK YOU, COMMISSIONER FELLEMAN
MR PRESIDENT
THANK YOU
COMMISSIONER MOHAMED PRESENT
THANK YOU
AND COMMISSIONER CALKINS PRESENT
THANK YOU
TODAY'S MEETING IS STRUCTURED FOR OUR VIRTUAL FORMAT
WE'VE MADE SPECIAL ARRANGEMENTS TO PROVIDE FOR REMOTE PARTICIPATION FOR ALL OUR STAFF AND COMMISSIONERS
LATER, WE'LL TAKE PUBLIC COMMENT FROM PEOPLE WHO ARE PARTICIPATING BY TEAMS AND WHO HAVE SIGNED UP TO SPEAK
ALL VOTES TODAY WILL BE TAKEN BY THE ROLL CALL METHOD
SINCE ALL COMMISSIONERS ARE PARTICIPATING REMOTELY, THAT MEANS FOR EACH VOTE, THE CLERK WILL CALL EACH COMMISSIONER'S NAME
COMMISSIONER ON THE TEAM'S CALL WILL MAKE SURE THEY'RE UNMUTED AND THEN ANSWER I OR NAY TO BE EQUITABLE
WE'LL ASK ALL COMMISSIONER CHO SPEAK IN TURN AND WAIT TO BE RECOGNIZED BEFORE SPEAKING AS MUCH AS POSSIBLE
WE ARE MEETING ON THE ANCESTRAL LANDS AND WATERS OF THE COAST SALISH, PEOPLE WITH WHOM WE SHARE A COMMITMENT TO STEWARD THESE 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 FOR THE PLEDGE OF ALLEGIANCE
I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL
THE FIRST ITEM OF BUSINESS TODAY IS THE APPROVAL OF THE AGENDA
COMMISSIONER, PLEASE UNMUTE YOURSELVES
WHEN IT'S YOUR TURN, I'M GOING TO ASK EACH COMMISSIONER IF THEY HAVE ANY MOTIONS TO REARRANGE THE ORDERS OF THE DAY
AND IF YOU DO, I'LL ASK FOR A SECOND
IT'S NEEDED
PLEASE RESPOND WHEN THE CLERK CALLS YOUR NAME
IF YOU HAVE NO CHANGES, JUST SAY NONE OR CART
GO AHEAD
THANK YOU FOR CHANGES TO THE AGENDA BEGINNING WITH COMMISSIONER MOHAMED
NONE
THANK YOU
COMMISSIONER HASEGAWA
NONE
THANK YOU
COMMISSIONER FELL IN
I HAVE A COUPLE I'D LIKE TO FIRST ACKNOWLEDGE THAT WE'RE GOING TO MOVE THE ITEM FOUR B TO THE MARCH 22 MEETING TO INCLUDE THE REVIEW OF THE EXECUTIVE
AND THEN I WOULD LIKE TO HAVE THE AMENDMENT TO ITEM 80
I WILL DO THAT AFTER INTRODUCTION
BUT ALSO I WOULD ALSO LIKE TO HAVE THE ITEM EIGHT R PULLED FROM THE CONSENT AGENDA FOR DISCUSSION
OKAY
SO COMMISSIONER FELLEMAN HAS PULLED ITEMS EIGHT O AND EIGHT R FROM THE CONSENT AGENDA FOR ITEM FOUR B, WHICH IS AROUND STEVE'S REVIEW
WE CAN MOVE THAT TO THE MARCH 22 MEETING UNLESS THERE IS AN OBJECTION
AND IF SO, WE'LL TAKE A FORMAL MOTION
ARE THERE ANY OBJECTIONS TO THAT? OKAY
SEEING NONE MAKE THOSE CHANGES TO TODAY'S AGENDA FOR THE VOTE
SO NOW THE QUESTION IS NOW ON APPROVAL OF THE AGENDA
MR COMMISSION PRESIDENT
YES
PARDON ME
LET'S GO AHEAD AND FINISH FOR CHANGES TO THE AGENDA
I CAN CALL FOR COMMISSIONER CHO
NOT FOR ME
THANK YOU
THANK YOU
AND THEN COMMISSIONER CALKINS
AND NONE FOR ME EITHER
THANK YOU
ALL RIGHT, NOW THE QUESTION IS ON APPROVAL OF THE AGENDA
PLEASE SAY AYE OR NAY WHEN YOUR NAME IS CALLED
GO AHEAD
CLERK HART, THANK YOU FOR APPROVAL OF THE AGENDA BEGINNING WITH COMMISSIONER MOHAMED
AYE
THANK YOU
COMMISSIONER HASEGAWA
AYE
THANK YOU
COMMISSIONER FELLEMAN
AYE
THANK YOU
COMMISSIONER CHO
AYE
THANK YOU
AND COMMISSIONER CALKINS
AYE
THANK YOU
THERE ARE FIVE AYES AND ZERO NAYS FOR APPROVAL OF THE AGENDA
GREAT
THE AGENDA IS APPROVED
WE'LL START THE MEETING TODAY WITH A SPECIAL ORDERS OF THE DAY PROCLAMATION
CLERK HART, CAN YOU PLEASE READ THE ITEM INTO THE RECORD? AND THEN WE'LL HEAR FROM EXECUTIVE DIRECTOR METRUCK
YES
THIS IS ITEM FOR A PROCLAMATION IN SUPPORT OF THOSE IMPACTED BY THE INVASION OF UKRAINE
YOU'RE ON MUTE DO YOU, COMMISSIONERS I'LL TRY AGAIN
TODAY YOU'LL CONSIDER A PROCLAMATION EXPRESSING THE PORT OF SEATTLE'S SOLIDARITY AND SUPPORT FOR THE PEOPLE OF UKRAINE
THE STORIES AND PICTURES COMING OUT OF RUSSIA'S BRUTAL AND UNPROVOKED INVASION OF UKRAINE ARE HORRIFIC
OUR HEARTS GO OUT TO THE MILLIONS OF INNOCENT PEOPLE WHO'VE BEEN DRIVEN FROM THEIR HOMES AND FORCED TO FLEE HUNDREDS OF MILES TO SAFETY AND FRIGID CONDITIONS
AT THE SAME TIME, WE'RE INSPIRED BY THE BRAVERY AND FORTITUDE OF THE UKRAINIAN PEOPLE IN THE FACE OF THIS INVASION
COMMISSIONER CALKINS AND I WERE PLEASED TO MEET WITH THE HONORARY COUNCIL OF UKRAINE VALERIE GOLOTCO ON FRIDAY AFTERNOON TO EXTEND OUR SUPPORT FROM THE PORT AND DISCUSS THE CURRENT NEEDS OF A LOCAL UKRAINIAN COMMUNITY
WE TOUCHED UPON THE TOPICS OF HUMANITARIAN AID, SUPPORT FOR UKRAINIAN REFUGEES, AND WHETHER THE PORT OF SEATTLE HAS ANY BUSINESS RELATIONS WITH RUSSIA
BASED ON OUR MEETING, THE PORT STAFF IS COMMUNICATING AND COORDINATING WITH COMMERCIAL AND FREIGHT CARRIERS REGARDING MOVING RELIEF SUPPLIES TO THE UKRAINE
AND WE HAVE ESTABLISHED A CROSSPORT TEAM TO ESTABLISH A WELCOMING CENTER FOR UKRAINIAN REFUGEES IN WESTERN WASHING WHEN THEY ARRIVE IN WESTERN WASHINGTON
I CAN STATE THAT THE PORT HAS NO BUSINESS TIES WITH RUSSIA OR RUSSIAN KNOWN ENTITIES
WE HAVE NO BUSINESS DEALINGS WITH RUSSIA UNTIL THIS CONFLICT ENDS AND RUSSIA WITHDRAWS ITS FORCES
NEITHER THE PORT NOR THE NORTHWEST SEAPORT ALLIANCE HAVE ANY DIRECT AIR OR MARITIME CONNECTIONS WITH RUSSIA
I FULLY SUPPORT THIS PROCLAMATION
WE'VE BEGUN PREPARATIONS FOR A POTENTIAL INFLUX OF REFUGEES FROM THE REGION
WE WILL SUPPORT THEM ON THEIR ARRIVAL AND RESETTLEMENT AS NEEDED
WE'LL CONTINUE TO COORDINATE WITH THE HONORARY CONSUL AND AYE
COMMUNITY PARTNERS AND OFFER OUR SUPPORT
I'M PLEASED THAT HE AND OTHER UKRAINIAN COMMUNITY MEMBERS COULD JOIN US AT THE COMMISSION MEETING TODAY
AT THIS TIME, I'LL TURN IT OVER BACK OVER TO COMMISSION PRESIDENT CALKINS
THANK YOU, EXECUTIVE DIRECTOR METRUCK
AT THIS TIME, I'M GOING TO READ THE PROPOSED PROCLAMATION INTO THE RECORD, AND THEN WE'RE GOING TO HEAR FROM A FEW PEOPLE IN OUR COMMUNITY WHO HAVE BEEN IMPACTED BY THE INVASION OF UKRAINE
THIS IS A PROCLAMATION OF THE PORT OF SEATTLE COMMISSION
WHEREAS THE RUSSIAN FEDERATION LAUNCHED AN UNPROVOKED ATTACK ON UKRAINE, RESULTING IN LOSS OF LIFE, DESTRUCTION OF CRITICAL INFRASTRUCTURE, AND IRREPARABLE DAMAGE TO UKRAINIAN CULTURAL HERITAGE, WHEREAS THE PORT OF SEATTLE STANDS IN SOLIDARITY WITH THE PEOPLE OF UKRAINE AND THEIR FIGHT FOR SOVEREIGNTY, AS WELL AS WITH ALL THOSE IMPACTED BY THE INVASION
AND WHEREAS WASHINGTON STATE IS HOME TO TENS OF THOUSANDS OF PEOPLE WHOSE FAMILIES ORIGINATE FROM UKRAINE AND RUSSIA, AND WHEREAS THE PORT OF SEATTLE, AS A HUB FOR GLOBAL TRADE AND TRAVEL, RELIES UPON A SYSTEM OF INTERNATIONAL ORDER WHICH RESPECTS TERRITORIAL SOVEREIGNTY AND BUILDS TRUST BETWEEN NATIONS
AND WHEREAS THE PORT OF SEATTLE HAS REVIEWED ITS COMMERCIAL COMMITMENTS AND FOUND NO TIES TO RUSSIA OR RUSSIAN OWNED ENTITIES AND WILL NOT CONTRACT WITH, PURCHASE FROM, OR OTHERWISE ENGAGE WITH RUSSIAN OWNED ENTITIES UNTIL THE RUSSIAN FEDERATION ENDS HOSTILITIES AND WITHDRAWS ALL FORCES FROM UKRAINE
AND WHEREAS THE US HAS TAKEN IMMEDIATE ACTION TO PROHIBIT FINANCIAL INVESTMENT AND TRANSACTIONS WITH RUSSIA, ISSUING ORDERS, BLOCKING RUSSIAN AIRCRAFT, AIRLINES, SHIPS, AND CARGO FROM ENTERING AND USING ALL DOMESTIC US AIR SPACE AND PORTS
AND WHEREAS THE PORT OF SEATTLE REMAINS COMMITTED TO SUPPORTING THE SAFETY, INCLUSION AND ENGAGEMENT OF ALL MEMBERS OF OUR COMMUNITY AND TO PROTECT THE RIGHTS AND QUALITY OF LIFE OF IMMIGRANTS, REFUGEES, AND FOREIGN VISITORS BY BEING A WELCOMING PORT FOR ALL THOSE SEEKING REFUGE DURING A TIME OF WAR
WHEREAS THE PORT OF SEATTLE HAS DEMONSTRATED ITS COMMITMENT TO WELCOMING ARRIVING REFUGEES THROUGH OUR AIRPORT IN CLOSE PARTNERSHIP WITH LOCAL RESETTLEMENT ORGANIZATIONS, MOST RECENTLY FOR AFGHAN REFUGEES, AND IS COMMITTED TO PROVIDING SIMILAR COORDINATION FOR ARRIVING UKRAINIAN REFUGEES
AND WHEREAS OUR THOUGHTS ARE WITH OUR NEIGHBORS, EMPLOYEES, AND THEIR FAMILIES WHO MAY BE DIRECTLY IMPACTED BY THIS CONFLICT
NOW, THEREFORE, THE PORT OF SEATTLE COMMISSION HEREBY PROCLAIMS ITS SUPPORT OF THOSE IMPACTED BY THE INVASION OF UKRAINE AND CALLS FOR THE IMMEDIATE WITHDRAWAL OF ALL RUSSIAN FORCES FROM UKRAINE
ALL RIGHT
AT THIS TIME, I'M GOING TO TURN IT OVER TO COMMISSION STRATEGIC ADVISOR LEANNE SHARADO, WHO WILL INTRODUCE A MEMBER OF THE PORT FAMILY WHO HAS JOINED US FOR THE PROCLAMATION TODAY
FLOOR IS YOURS
THANK YOU
COMMISSIONER CALKINS, IT'S MY HONOR TO INTRODUCE YOU TO SET SVETLANA O'BRIEN, A MEMBER OF OUR HR TEAM HERE AT THE PORT FAMILY
SET
LANA, IF YOU WANT TO TURN YOUR SCREEN ON
THANK YOU SO MUCH
HI
GOOD AFTERNOON, EVERYBODY
AND THANK YOU SO MUCH
FIRST OF ALL, I JUST WANT TO SAY THAT I'M GRATEFUL FOR THIS OPPORTUNITY TO SPEAK TO ALL OF YOU
I AM OVERWHELMED WITH THE KINDNESS AND SUPPORT OF MY COLLEAGUES AT THE PORT IN THE COMMUNITY
I'M UKRAINIAN, AND I CAME HERE AS A REFUGEE IN JUNETEENTH 94 AFTER THE FALL OF A SOVIET UNION
BUT THE REST OF MY FAMILY, THEY STAYED BEHIND
OVER THE LAST FEW WEEKS, I HAVE BEEN IN DAILY CONTACT WITH MY SISTER AND MY COUSINS IN KEVIN HARKOV, THE TWO BIGGEST CITIES IN UKRAINE THAT ARE CONSTANTLY BEING BOMBED BY THE RUSSIAN ARMY
EVERY TIME I SEE MY RELATIVES ON THE COMPUTER SCREEN, I WONDER IF THIS IS THE LAST TIME I WILL SEE THEM
I BEG THEM TO LIVE, BUT FOR MANY REASONS, THEY CANNOT
THE MEN AREN'T ALLOWED TO LEAVE THE COUNTRY AND WOMEN DON'T WANT TO ABANDON THEM
SO THEY'RE ALL BRAVE AND WANT TO STAY AND FIGHT FOR THEIR COUNTRY, BUT THEY ALSO FEAR JUST GOING OUTSIDE
THE RUSSIAN ARMY IS BOMBING AND DELIBERATELY SHOOTING INNOCENT CIVILIANS, WOMEN, CHILDREN, THE ELDERLY
I'M PROUD TO SEE THAT OUR GOVERNMENT IS TAKING MEANINGFUL STEPS TO SUPPORT THE UKRAINIAN PEOPLE AND THE DEMOCRATIC GOVERNMENT FOR FIGHTING FOR THEIR LIVES
BUT WE CAN DO MORE
WE SHOULD DO MORE
WE ALWAYS SAY NEVER FORGET WHAT HAPPENED IN THE SECOND WORLD WAR AND THE HOLOCAUST
I THINK THIS IS OUR CHANCE TO PREVENT ANOTHER CATASTROPHE
WHEN YOU LET DICTATORS INVADE COUNTRIES WITHOUT STOPPING THEM, THEY WILL NOT STOP JUST THERE
SO I ENCOURAGE EVERYBODY TO CONTACT THEIR REPRESENTATIVES IN CONGRESS AND TELL THEM TO FIGHT THE RUSSIAN DICTATOR AND DO MORE FOR UKRAINE
ANYONE WHO WANTS TO HELP AND HAS THE MEANS, PLEASE DONATE TO MANY HUMANITARIAN ORGANIZATIONS HELPING REFUGEE IN UKRAINE
AND THERE ARE MANY ORGANIZATIONS, THE UNITED NATIONS, RED CROSS AND OTHERS
SO THANK YOU SO MUCH FOR THE OPPORTUNITY
THANK YOU
THANK YOU
MY APOLOGIES
I MUTED MYSELF
THANK YOU FOR COMING TO OUR MEETING TODAY AND FOR SHARING YOUR STORY
I KNOW THAT IT HAS GOT TO BE AN EXTRAORDINARILY ANXIOUS AND SCARY TIME FOR YOU AND YOUR FAMILY AND FOR THE ENTIRE EXTENDED UKRAINIAN COMMUNITY HERE
WE'D LOVE IT
IF YOU COULD STAY ON THE MEETING FOR THE REMAINDER OF THE DISCUSSION AROUND THE TOPIC OF UKRAINE
AT THIS POINT, I BELIEVE WE'RE GOING TO INVITE KARNZOG BLACK, WHO'S OUR INTERNATIONAL BUSINESS PROTOCOL LIAISON, PORT OF SEATTLE, TO SPEAK AND ALSO TO INTRODUCE THE UKRAINE DELEGATES IN ATTENDANCE
GREAT
THANKS
COMMISSIONER CALKINS
HELLO, COMMISSIONER AND EXECUTIVE DIRECTOR METRUCK
IT'S MY PLEASURE TO JOIN YOU HERE TODAY
EVEN THOUGH THE TOPIC IS A SOMBER ONE, I APPRECIATE THAT COMMISSIONER CALKINS AND EXECUTIVE DIRECTOR METRUCK WERE ABLE TO MEET WITH THE HONORARY CONSUL OF UKRAINE, MR VALERI GOLOBOROTO, LAST FRIDAY
AND WE'RE PLEASED TO HAVE HONORARY CONSUL HERE TODAY TO OFFER A FEW REMARKS
AND THEN I WILL ALSO INTRODUCE SOME OF THE UKRAINIAN COMMUNITY LEADERS WHO ARE ALSO ABLE TO JOIN US
SO WITH THAT, I'LL ASK HONORARY CONSUL GULOBORO TO PLEASE TURN ON YOUR CAMERA AND UNMUTE AND WE'D LOVE TO HEAR A FEW REMARKS FROM YOU, PLEASE
GOOD AFTERNOON, COMMISSIONER
CALL KINGS AND COMMISSIONERS, THANK YOU FOR YOUR HEARTS BEING FOR UKRAINE
THANK YOU THAT YOU SHARE WITH US ARE PAYING AND YOU'RE TRYING TO DO EVERYTHING POSSIBLE TO HELP AND SUPPORT UKRAINIAN COMMUNITY OF WASHINGTON STATE IN UKRAINE
STEPS THAT YOU ARE TAKING AND THAT YOU ANNOUNCE IN YOUR STATEMENT ARE VERY IMPORTANT AND VERY MUCH APPRECIATED
AND THOSE ARE STEPS THAT WE BELIEVE WILL STOP THIS WAR
THOSE ARE STEPS THAT OTHER ORGANIZATIONS, OTHER CORPORATIONS, OTHER BUSINESSES AND INDIVIDUALS HAVE TO TAKE, STOP ANY BUSINESS WITH RUSSIA AND DO WHATEVER WE CAN DO TO STOP THIS WAR
AS SVETLANA SHARED THAT INNOCENT PEOPLE ARE DYING
AND WHEN WE SPEND OUR DOLLARS TO BUY PRODUCTS MADE IN RUSSIA, WE SPONSOR PUTIN REGIME AND WE PAY OUR MONEY TO BUY BULLETS TO KILL PEOPLE
THANK YOU SO MUCH FOR NOT DOING ANY BUSINESS WITH RUSSIA
AT THE SAME TIME, WE BELIEVE THAT THIS WAR WE WILL WIN IN THIS WAR AND THEN WE WILL BE BUILDING PROSPEROUS COUNTRY OF UKRAINE
AND AT THAT TIME, I LOOK FORWARD TO PARTNERING WITH YOU ON DEVELOPING STRONGER TIES BETWEEN OUR REGIONS
ALSO, I WOULD LIKE TO SAY THANK YOU FOR PREPARING WELCOMING CENTER TO WELCOME REFUGEES FROM UKRAINE
WE HAVE COMMUNITY LEADERS HERE AND ORGANIZATION LEADERS HERE
THEY WILL BE AT THAT WELCOMING CENTER TO WELCOME REFUGEES FROM UKRAINE
WE EXPECT THAT MANY WILL COME TO OUR WONDERFUL STATE AND WE WANT TO LET THEM KNOW THAT THEY ARE WELCOMED HERE AND WE WANT TO HUG THEM
WE WANT TO HOLD THEIR HANDS WHEN THEY'RE COMING TO OUR STATE OF WASHINGTON
ALSO, I WOULD LIKE TO SAY THANK YOU FOR EVERYTHING YOU ARE DOING TO HELP OUR ORGANIZATIONS TO SEND HUMANITARIAN AID TO UKRAINE
THAT'S VERY IMPORTANT
AND WE HAVE NO TIME TO WAIT BECAUSE UKRAINIANS NEED THAT MEDICAL SUPPLIES
THEY NEED THOSE PRODUCTS THAT WE CAN BRING FROM HERE TO POLAND AND THEN DELIVER THEM TO UKRAINE
AND YOUR LEADERSHIP IN THIS IS VERY MUCH APPRECIATED
THANK YOU SO MUCH
GREAT
THANK YOU SO MUCH
HONORARY CONSUL, WE APPRECIATE ALL OF THE HARD WORK THAT YOU ARE DOING WITH ALL OF YOUR COMMUNITY COLLEAGUES AS WELL
SO AS HONORARY CONSUL MENTIONED, HE WORKS WITH A NUMBER OF LEADERS IN THE UKRAINIAN COMMUNITY ACROSS WASHINGTON STATE
AND I WANT TO ACKNOWLEDGE SOME OF THOSE WHO WERE ABLE TO JOIN US TODAY
AND ASK THEM TO TURN ON THEIR CAMERAS AND MICS AND BE ACKNOWLEDGED
AND THEN WE WILL HAVE A REPRESENTATIVE SHARE A FEW MORE REMARKS TO CLOSE US OUT
SO I WANT TO ACKNOWLEDGE THAT MR OLEGA PINDA , THE UKRAINIAN COMMUNITY CENTER PRESIDENT, IS WITH US
ALSO, MS LILIA KOVALENKO, WHO IS THE UKRAINIAN AVIATION OF WASHINGTON STATE PRESIDENT AS WELL
THANK YOU, LILIA
WE ALSO HAVE MR VASSAL CHEVOLSKI, WHO IS THE LEAST DIRECTOR HERE IN WASHINGTON
AND THEN ALSO LAST JOINING US, MR YURI ZARAMBA, WHO IS THE UKRAINIAN CHAMBER OF COMMERCE PRESIDENT AS WELL
SO WE'RE REALLY PLEASED THAT THEY COULD ALL JOIN US TODAY AND WE WILL BE CONTINUING OUR COORDINATION WITH THEM
AND WITH THAT, I WANTED TO ASK MR OLIG PINDA, THE UKRAINIAN COMMUNITY CENTER PRESIDENT, TO JUST ALSO OFFER A FEW WORDS OF GREETING
MR PINDA, THANK YOU
MY NAME IS OLEG PINDA AND I'M THE FOUNDER AND EXECUTIVE DIRECTOR OF THE UKRAINIAN COMMUNITY CENTER OF WASHINGTON
I AM SOUTH KING COUNTY RESIDENT FOR 30 YEARS, FORMER REFUGEES MYSELF
AND I'M A PROUD US CITIZEN AND WASHINGTONIAN
I AM PROUD TO BE A PART OF THE LARGEST WASHINGTONIAN COMMUNITY WHO ERODES UNITED IN COMBINATION OF RUSSIAN AGGRESSION AND SOLIDARITY IN SUPPORT OF UKRAINE
I'M HONORED TO ADDRESS THE BOARD OF COMMISSIONER
AND FIRST OF ALL, I WANT TO EXPRESS ENDLESS GRATITUDE OF THE LARGE UKRAINIAN COMMUNITY IN THE STATE OF WASHINGTON FOR ALL WHAT YOU'VE DONE
SECONDLY, DURING THIS CHALLENGING TIME, I WOULD LIKE TO REQUEST YOUR ASSISTANCE IN SHIPPING HUMANITARIAN AID TO POLAND
I KNOW YOU ALREADY DONE A LOT
ACCORDING TO UNITED NATIONS, CLOSE TO 2 MILLION REFUGEES ALREADY HAVE LED UKRAINE AND THE VAST MAJORITY ENDS UP IN POLAND
PRESENTLY, HUMANITARIAN AID AND THE MOZART'S APART IS SHIPPED TO POLAND BY THE SEAS AS IT IS THE LEAST EXPENSIVE APPROACH, BUT IT TAKES TIME TO GET TO THE FINAL DESTINATION
WE NEED YOUR HELP IN SECURING AFFORDABLE AIRLIFT OF HUMANITARIAN AID FOR REFUGEES, UKRAINIAN REFUGEES INTO POLAND AND OTHER COUNTRIES WHO ARE HOSTING UKRAINIAN REFUGEES
THERE ARE MANY MORE OTHER NEEDS LIKE CENTRALIZED AVIATION FOR STORING HUMANITARIAN AID, FUNDING TO ADDRESS MENTAL HEALTH STAGE OF UKRAINIAN CRISIS, MANY OF WHOM HAVE CROSSED MEXICAN BORDER AND ARE NOT ELIGIBLE FOR MEDICAID SERVICES
BUT AGAIN, WE APPRECIATE ALL THE SUPPORT ALREADY PROVIDED AND ARE LOOKING FORWARD TO BE PROACTIVE AND EFFECTIVE IN ADDRESSING REFUGEES CRISIS IN UKRAINE
THANK YOU
THANK YOU
MR PINDA, WE APPRECIATE YOU JOINING US AND OFFERING SOME OTHER THOUGHTS TODAY
THANK YOU SO MUCH
SO WITH THAT, COMMISSIONER CALKINS, I JUST WOULD SAY THANKS TO HONORARY COUNCIL GOLO BOROTKO AND THE OTHER COMMUNITY LEADERS FOR JOINING US TODAY
WE LOOK FORWARD TO CONTINUING TO WORK WITH THEM TO SUPPORT UKRAINE
AND I'LL PASS IT BACK TO YOU
COMMISSIONER CALKINS, TO CALL FOR COMMISSIONER COMMENTS ON THE PROCLAMATION
THANK YOU
THANK YOU, KAREN
COMMISSIONERS, WE'RE NOW GOING TO GO THROUGH A ROLL CALL TO PROVIDE EACH OF YOU AN OPPORTUNITY TO COMMENT ON THE PROCLAMATION
CLERK HART? THANK YOU
BEGINNING WITH COMMISSIONER MOHAMED, THANK YOU
FIRST, I JUST WANT TO SAY THANK YOU TO COMMISSION PRESIDENT CALKINS AND EVERYONE WHO WORKED ON THIS REALLY IMPORTANT PROCLAMATION
AND I JUST WANT TO GIVE A SPECIAL THANK YOU TO ALL THE SPEAKERS TODAY
THANK YOU TO THE UKRAINIAN COMMUNITY CENTER, WASHINGTON EXECUTIVE DIRECTOR OLEG OUR HONORARY CONSULAR, VALERIE GOLDBALOCO AS WELL
THANK YOU SO MUCH
AND I HAVE BEEN WORKING WITH YOU ALL IN OTHER CAPACITIES
I JUST WANT TO EXPRESS MY DEEP GRATITUDE TO ALL OF YOU AND THE WORK THAT YOU HAVE BEEN DOING, DEEP GRATITUDE TO THE UKRAINIAN COMMUNITY AT LARGE
AND THOSE OF YOU WHO ARE HERE WITH US TODAY, THANK YOU FOR YOUR INSPIRATIONAL LEADERSHIP AND COURAGE
YOUR RESISTANCE IS A TESTAMENT TO DEMOCRACY
AND SO MANY OF US IN KING COUNTY, AT THE PORT OF SEATTLE AND AROUND THE WORLD STAND IN SOLIDARITY WITH ALL OF YOU
AND AS MANY OF YOU MAY KNOW, IN MY OTHER WORK CAPACITY, I SERVE AS THE DIRECTOR OF THE OFFICE OF IMMIGRANT AND REFUGEE AFFAIRS FOR THE CITY OF SEATTLE
AND WE HAVE BEEN WORKING AROUND THE CLOCK ON OUR REGIONAL RESPONSE TO THIS CRISIS FOR THE LAST SEVERAL WEEKS
AND AS SOMEONE WHO CAME TO THIS COUNTRY AS A REFUGEE AND TODAY GOVERN THE SAME AIRPORT THAT I ARRIVED AT, I'LL JUST SAY NEVER LOSE HOPE, FAITH OR COURAGE
AND IN KING COUNTY, SO MANY OF US STARTED OUR AMERICAN STORY AT THE PORT OF SEATTLE AND AT SEA AIRPORT
WE ARE COMMITTED TO BEING A WELCOMING REGION FOR OUR IMMIGRANT AND REFUGEE COMMUNITIES
AND WE INTEND TO TAKE MORE ACTIONS LIKE THIS TO SUPPORT OUR UKRAINIAN COMMUNITY
THANK YOU FOR THE TIME
THANK YOU, COMMISSIONER
COMMISSIONER HASEGAWA, THANK YOU, HONORABLE COUNCIL, GENERAL, DISTINGUISHED GUESTS FOR JOINING US AND SHARING YOUR TESTAMENT WITH ALL OF US TODAY
I WANTED TO EXPRESS MY HEARTFELT COMPASSION FOR YOU ALL IN THE LARGER UKRAINIAN COMMUNITY THAT WE HAVE HERE LOCALLY
AND IN FACT, THAT SO MANY CIVILIAN CASUALTIES HAVE ALREADY BEEN RECORDED AS A RESULT OF THIS SENSELESS POWER GRAB THAT HAS BEEN IMPACTING OVER 300 PEOPLE WHO HAVE ALREADY BEEN KILLED, INCLUDING CHILDREN
IT'S SENSELESS, IT'S UNJUSTIFIABLE
BUT I'M SO PROUD TO STAND HERE WITH ALL OF YOU IN SOLIDARITY
AND AS COMMISSIONER MOHAMED, LAST WEEK, WE HELD A RECEPTION, A CELEBRATION OF OUR INTERNATIONAL COMMUNITY AND OUR GATEWAY TO THE WORLD
THAT'S THE ROLE THAT THE PORT OF SEATTLE HAS AS A CONNECTOR
IT'S A PLACE WHERE PEOPLE COME IN SEARCH OF OPPORTUNITY, IN SEARCH OF BELONGING
AND THERE WE WERE JOINED BY OUR GOVERNOR, JAY INSLEE, WHO ANNOUNCED THAT WE WOULD BE WELCOMING UKRAINIAN REFUGEES AS WE DID FOR THE REFUGEES COMING FROM AFGHANISTAN AND FROM PLACES ALL OVER THE WORLD
BECAUSE WE MUST CONTINUE TO BE A VEGAN, WE MUST CONTINUE TO BE A WELCOMING STATE, A WELCOMING REGION
WE LIFT YOU UP, WE CELEBRATE YOU
WE FEEL YOUR PAIN, YOUR UNCERTAINTY
AND SO FOR THIS ACTION THAT WE CAN TAKE, ALBEIT SMALL, WE HOPE THAT IS AN IMPORTANT ACTION AS PART OF SOMETHING THAT WE CAN ALL DO UNITED AS A REGION IN ORDER TO LIFT UP THE PEOPLE OF UKRAINE
THANK YOU FOR JOINING US TODAY
THANK YOU, COMMISSIONER HASEGAWA
COMMISSIONER FELLEMAN, YOU ARE MUTED, SIR
MUTED
WELL, THANK YOU VERY MUCH
AS A DESCENDANT OF JEWS FROM RUSSIA AND POLAND, IMAGES OF THE WAR IN UKRAINE IMPACT ME CLOSELY
MY HEART GOES OUT TO THE UKRAINIAN PEOPLE WHOSE LIVES HAVE BEEN SO ABANDONED, AS WELL AS THOSE FROM RUSSIA
TO SEE PEOPLE FLEEING THEIR COUNTRY WITH A SUITCASE AND GETTING ON TRAINS IS A PAINFUL REMINDER OF THE POGROMS OF WORLD WAR II
THE FACT THAT THESE IMAGES ARE IN COLOR REMIND US HOW FRAGILE DEMOCRACY AND FREEDOM IS
HAVING PRESIDENT ZELINSKY, WHO IS JEWISH, BEING CALLED A NAZI IS TRULY DISGUSTING
THE USE OF THE WORD NAZI HAS BECOME FAR TOO CASUAL TO DESCRIBE STRICT BEHAVIOR OR REGULATIONS
IT'S NOT JUST ABOUT DISCRIMINATION OR ANTISEMITISM
IT'S ABOUT THE CASUAL USE OF THE TERM DISREGARDS THE SIGNIFICANCE OF 6 MILLION JEWS BEING SYSTEMATICALLY SLAUGHTERED WITH THE GOAL OF COMPLETE ANNIHILATION
THE FACT THAT THE MEMORIAL AT BAVIYAR, THE SITE OF THE JUNETEENTH 41 MASSACRE OF OVER 33,700 JEWS BY NAYS AND KIEVS, WAS DAMAGED IN THIS UNJUST WAR, IS A PARTICULARLY POIGNANT SYMBOL OF THE ONGOING DISREGARD OF THE JEWISH PEOPLE BY THE CURRENT RUSSIAN LEADERSHIP
I LOOK FORWARD TO WORKING WITH THE PORT TO INCLUDE THE ACKNOWLEDGEMENT OF THE INCREASE IN HATE CRIMES THAT HAS BEEN SIGNIFICANTLY DIRECTED TO THE JEWISH PEOPLE
THIS HAS INCLUDED OVER 120 INCIDENTS OF EXTREME ANTISEMITISM IN THE PAST YEAR AND WHICH HAS MORE THAN DOUBLED YEAR OVER YEAR
I SALUTE THE BRAVERY AND RESILIENCE OF THE UKRAINIAN PEOPLE AND THE DESIRE OF THE PORT TO MAKE THIS PROCLAMATION
AND I URGE THE UNITED STATES TO WORK WITH NATO MEMBERS TO PROVIDE FURTHER ASSISTANCE TO THE BRAVE UKRAINIANS WHO STAYED TO FIGHT, AS WELL AS THOSE WHO BECOME REFUGEES
AND THANK YOU TO OUR UKRAINIAN GUESTS FOR BRINGING A PERSONAL PERSPECTIVE TO THIS CURRENT ATROCITY
THANK YOU, COMMISSIONER FELLEMAN AND COMMISSIONER CHO
YEAH
FIRST OF ALL, THANK YOU TO PRESIDENT CALKINS, AS WELL AS STEVE METRUCK AND THE CONSUL GENERAL, FOR THIS OPPORTUNITY FOR THE PORT OF SEATTLE TO WEIGH IN ON THIS EXTREMELY DIFFICULT ISSUE
I THINK MY COLLEAGUES DID AN EXCELLENT JOB IN REALLY SUMMING UP OUR COLLECTIVE SENTIMENTS TOWARDS WHAT'S GOING ON IN UKRAINE AND RUSSIA
SO I WON'T SPEAK TOO MUCH, BUT I FEEL LIKE, AS YOU CAN SEE FROM HOW WE'VE ALL BEEN UNIFIED ON THIS ISSUE, I THINK IT'S SAFE TO SAY THAT THE WORLD IS WITH UKRAINE
AND DESPITE THE VIOLENCE, DESPITE ALL THE SENSELESS KILLINGS, I HOPE THE PEOPLE OF UKRAINE KNOW AND ARE FEELING THAT WE ARE TRULY BEHIND YOU AND WE STAND IN SOLIDARITY WITH YOU
I WANT TO JUST SAY THANK YOU FOR THE OPPORTUNITY FOR THE PORT OF SEATTLE, IN OUR SMALL WAY, IN OUR SMALL CORNER OF THE COUNTRY TO MAKE OUR STATEMENT
AND, YOU KNOW, I DON'T KNOW HOW MUCH OF A BIG IMPACT WE CAN HAVE AS ONE PORT
BUT I THINK IT'S CLEAR FROM WHAT MY COLLEAGUES HAVE SAID AND WHAT I WILL SAY IS THAT THE PORT OF SEATTLE WILL DO EVERYTHING WE CAN TO SUPPORT THIS COMMUNITY, THAT WE'RE GOING TO DO EVERYTHING WE CAN TO SUPPORT, TO MAKE SURE ANYONE COMING IN AS REFUGEES WILL BE SUPPORTED
AND SO I'D LIKE TO TAKE THIS OPPORTUNITY TO THANK THE PORT STAFF AND EVERYONE WITHIN THE PORT WHO RALLIED BEHIND THIS ISSUE AND WHO WILL BE WORKING GOING FORWARD TO ACCOMMODATE ANY REFUGEES OR ANY OTHER INITIATIVES THAT WE MAY UNDERTAKE GOING FORWARD TO SUPPORT THE PEOPLE OF YOUR PAIN
SO WITH THAT, I'LL TURN IT BACK TO PRESIDENT CALKINS
THANK YOU SO MUCH
THANK YOU
COMMISSIONER CALKINS, I WILL ADD THAT THE IMPACT OF THIS INVASION AND THE POTENTIAL OUTCOME FAR EXCEEDS JUST THE RELATIONSHIP BETWEEN TWO NATIONS
THIS IS TRULY AN INSTANCE IN WHICH AN AUTOCRACY IS TRYING TO END A DEMOCRACY
SO WHEN PRESIDENT ZELINSKY EARLIER TODAY MADE THE STATEMENT THAT THOUGH THEY DIDN'T START IT AND THEY DIDN'T WANT IT, THEY WILL FIGHT UNTIL THE END
HE IS ON BEHALF OF THE UKRAINIAN PEOPLE, MAKING ONE OF THE MOST POWERFUL STANDS FOR DEMOCRACY, CERTAINLY THAT HAS EVER I'VE EVER WITNESSED IN MY LIFE, AND IS REMINDING ALL OF US THAT THIS IS A FRAGILE AND TENUOUS SYSTEM THAT IS WORTH FIGHTING FOR TO THE VERY END
AND SO WHATEVER WE MAY DO HERE AS THE PORT OF SEATTLE COMMISSION, AS OUR COMMUNITY, AS THE UNITED STATES TO SUPPORT THEIR EFFORTS TO SHORE UP DEMOCRACY IN EASTERN EUROPE AND MORE BROADLY, SEND A MESSAGE THAT WE DEMOCRATIC NATIONS WILL NOT PUT UP WITH AUTOCRATIC NATIONS TRYING TO END DEMOCRATIC RULE
I THINK WE SHOULD DO THAT AND MORE
AND SO I AM PLEASED TO HEAR THAT THE COMMUNITY SUPPORT FOR INITIATIVES THAT MAY HAVE REAL IMPLICATIONS FOR POCKETBOOKS AT HOME ARE WELL SUPPORTED BY THE AMERICAN PEOPLE AND CERTAINLY BY OUR COMMUNITY
AND SO I'M PROUD THAT WE AS AN INSTITUTION WILL MAKE THIS PROCLAMATION AND WE WILL CONTINUE TO STAND WITH UKRAINIANS AND OTHERS WHO ARE OPPOSED TO THIS UNLAWFUL INVASION
IS THERE A MOTION IN A SECOND TO ADOPT THIS PROCLAMATION? I'LL SECOND IT
THE MOTION HAS BEEN MADE
AND SECONDED, IS THERE ANY FURTHER COMMENT OR QUESTION ON THE MOTION? USE YOUR HAND
IF SO, I DO NOT SEE ANY HANDS RAISE
OKAY
SEE? NO FURTHER DISCUSSION
CLERK HART, CAN YOU PLEASE CALL THE ROLL FOR THE VOTE? REMINDER, COMMISSIONERS, PLEASE SAY AYE OR NAY WHEN YOUR NAME IS CALLED FOR THE VOTE ON THIS PROCLAMATION, BEGINNING WITH COMMISSIONER MOHAMED AYE
THANK YOU
COMMISSIONER HASEGAWA
AYE
THANK YOU
COMMISSIONER FELLEMAN
AYE
THANK YOU
COMMISSIONER CHO
AYE
THANK YOU
COMMISSIONER CALKINS
AYE
THANK YOU
THERE ARE FIVE AYES AND ZERO NAYS FOR THIS ITEM
AND CAN I JUST CONFIRM THAT THIS ONE SECTION THAT THE MOTION PASSES? GO AHEAD, FRED
I WAS JUST WANTED TO CONFIRM THIS IS THE AMENDED VERSION THAT WE'RE VOTING ON? YEAH
THE ONE THAT I READ INTO THE RECORD INCLUDED WE WERE ABLE TO GET THE PROPOSAL, AND SO IT DID NOT REQUIRE AN AMENDMENT
THANK YOU
OKAY
THANK YOU
COMMISSIONERS, AS WE'VE MENTIONED, ITEM B HAS BEEN MOVED TO THE ITEM FOUR
B HAS BEEN MOVED TO THE MARCH 22 MEETING
NEXT ON OUR AGENDA IS THE EXECUTIVE DIRECTORS REPORT
ALL RIGHT, STEVE, TO YOU
THANK YOU
PRESIDENT CALKINS COMMISSIONER WOULD LIKE TO BEGIN MY REPORT BY NOTING THAT THE MONTH OF MARCH IS WOMEN'S HISTORY MONTH AND TODAY, MARCH 8 IS INTERNATIONAL WOMEN'S DAY
THIS IS A TIME TO BE MARKED BY CELEBRATING THE SOCIAL, ECONOMIC, CULTURAL AND POLITICAL ACHIEVEMENTS OF WOMEN AND SERVES AS A CALL TO ACTION FOR ACCELERATING GENDER EQUALITY HERE AT THE PORT OF SEATTLE
OUR MONTH LONG CELEBRATION OF WOMEN TAKES THE FORM OF SEVERAL EVENTS PUT ON BY OUR EMPLOYEE RESOURCE GROUP, THE WOMEN'S INITIATIVE NETWORK, KNOWN AS WIN, WHICH WILL ACCUMULATE IN THE ANNUAL WOMEN'S OUTSTANDING ACHIEVEMENT AWARDS TO BE HELD ON MARCH 30
IT'S IMPORTANT FOR US TO CELEBRATE THE CONTRIBUTIONS AND ACHIEVEMENTS OF WOMEN EVERYWHERE
I'M PROUD OF THE WORK THAT WE HAVE DONE AT THE PORT TO HELP ADDRESS INEQUITIES FOR WOMEN, BUT ALSO RECOGNIZE THERE'S MUCH MORE WORK TO BE DONE
WOMEN'S HISTORY MONTH IS BOTH AN OPPORTUNITY FOR US TO CELEBRATE AND A REMINDER OF THE WORK THAT IS BEFORE US
THE THEME FOR THIS YEAR IS BREAK THE BIAS AND CHALLENGES US TO IMAGINE A GENDER EQUAL WORLD, A WORLD FREE OF BIAS, STEREOTYPES AND DISCRIMINATION
A WORLD IS DIVERSE, EQUITABLE AND INCLUSIVE, A WORLD WHERE DIFFERENCE IS VALUED AND CELEBRATED
TOGETHER, WE CAN FORGE WOMEN'S EQUALITY AND BREAK THE BIAS
REGARDING OUR BATTLE AGAINST COVID-19, WE MARKED TWO YEARS SINCE THE START OF THE PANDEMIC AND THERE IS GOOD NEWS TO REPORT
FINALLY, THE RATES OF INFECTIONS AND HOSPITALIZATIONS ARE DOWN SHARPLY, AND WE EXPECT CASES WILL CONTINUE TO DROP IN THE COMING WEEKS
WITH TRENDS IN THE RIGHT DIRECTION, THE RISK IN KING COUNTY IS CONSIDERED LOW
THIS IS IN LARGE PART DUE TO WIDESPREAD IMMUNIZATION AND MASS REQUIREMENTS THAT SLOW THE SPREAD OF THE DISEASE
CASES AMONG POOR EMPLOYEES ARE ALSO LOW, RESULTING PRIMARILY FROM EXPOSURE OUTSIDE OF THE WORKPLACE
AS YOU KNOW, GOVERNOR INSLEE IS MOVING UP HIS DEADLINE FOR LIFTING THE STATEWIDE MASK MANDATE FOR PUBLIC SPACES TO MARCH 12, AND KING COUNTY HEALTH AUTHORITIES ARE DOING THE SAME
I'VE REVIEWED THESE DEVELOPMENTS FOR THEIR HEALTH AND SAFETY TEAM
I'M PLEASED TO ANNOUNCE THAT THE MASKING WILL BECOME OPTIONAL FOR PORT EMPLOYEES IN MOST PORT SPACES STARTING ON MARCH 12
IMPORTANT EXCEPTIONS TO OPTIONAL MASKING INCLUDE PUBLIC SPACES AT TACOMA INTERNATIONAL AIRPORT, CRUISE FACILITIES AT PIER 66 AND TERMINAL 91, AND MODES OF TRANSPORTATION SUCH AS THE AIRPORT TRAINS, RENTAL CAR AND EMPLOYEE BUSES
THESE AREAS ARE STILL UNDER FEDERALLY MANDATED CDC AND TSA MASK REQUIREMENTS UNTIL FURTHER NOTICE
I WANT TO NOTE THAT OUR VACCINATION REQUIREMENT FOR ALL EMPLOYEES IS ALSO UNCHANGED AS THE VIRUS IS STILL PRESENT IN OUR COMMUNITY TO KEEP OUR WORKFORCE SAFE
WE WILL ALSO REQUIRE FULL VACCINATION FOR CONTRACTORS AND CONSULTANTS WORKING IN CLOSE CONTACT WITH PORT EMPLOYEES
SIGNS REMINDING VISITORS OF OUR REQUIREMENTS WILL BEGIN GOING UP AROUND THE PORT STARTING THIS WEEK, AND YOU MAY SEE THOSE
IN ADDITION, THE EMPLOYEE SELF CHECK APPLICATION HEALTH SURVEY WILL CONTINUE AS A REQUIREMENT
THESE CHANGES ARE POSSIBLE ONLY BECAUSE WE AS A COMMUNITY TOOK EARLY AND CONSISTENT ACTIONS TO PROTECT THE HEALTH AND SAFETY OF OUR EMPLOYEES AND THE COMMUNITY AND APPRECIATE YOUR SUPPORT FOR THESE MEASURES THAT HAVE GOTTEN US TO THIS POINT
NEXT, I WANT TO CONGRATULATE EVERYONE INVOLVED IN THE VERY SUCCESSFUL REVEAL OF THE NEW INTERNATIONAL RIVALS FACILITY AT SEATTLE TACOMA INTERNATIONAL AIRPORT LAST THURSDAY
AS YOU KNOW, WE HAVE A STANDING ROOM ONLY AUDIENCE ON HAND FOR AN EARLY LOOK AT THE STATE OF THE ART FACILITY
THANK YOU TO GOVERNOR INSLEE FOR AYE
WARM WELCOME AND GOOD WORDS ABOUT THE PORT OF SEATTLE
THANKS ALSO TO OUR AIRLINE AND FEDERAL PARTNERS FOR JOINING THE CELEBRATION
LOOKING BACK, I DO THINK THAT OUR MEETING SHOULD BEGIN WITH ALWAYS BEGIN WITH A COMING NATIVE, METATIVE FLUTE MUSIC AND END WITH OPERA SELECTIONS
THESE WERE OUTSTANDING AND MEANINGFUL PERFORMANCE DURING THE REVEAL CEREMONY
IN A MONTH OR SO, WE'LL BEGIN OPERATIONS AND WELCOMING TRAVELERS TO THE FACILITY WITH A NEW LEVEL OF CONVENIENCE AND EFFICIENCY
THE EXPANDED CAPACITY WOULD HELP US ACCOMMODATE INTERNATIONAL TRAVEL COMING TO OUR REGION AND FROM AROUND THE WORLD
SPECIAL THANKS TO EVERYONE THAT HAS PUT IN OVER 3 MILLION HOUR OF WORK INTO THIS PROJECT, INTO OUR AVIATION TEAM THAT IS READY THE FACILITY FOR OPERATIONS
WE CAN ALL BE VERY PROUD OF THIS ACHIEVEMENT
COMMISSIONERS, FIGHTING HUMAN TRAFFICKING AT PORT FACILITIES IS A TOP PRIORITY FOR US
EARLIER THIS SPRING, WE TOLD YOU ABOUT THE ARREST OF A HUMAN TRAFFICKING SUSPECT BY PORT OF SEATTLE POLICE AT SEA
I'M PROUD TO SHARE WITH YOU THE PORT'S INVOLVEMENT IN A SECOND CASE THAT RESULTED IN THE ARRESTS AND SUCCESSFUL PROSECUTION OF A BOISE MAN WHO PLEADED GUILTY TO TRAFFICKING WOMEN BETWEEN IDAHO AND WASHINGTON
THE INVESTIGATION INVOLVED MANY LEVELS OF FEDERAL AND LOCAL SECURITY AND LAW ENFORCEMENT
I WANT TO PERSONALLY COMMAND AN ETHNIC PRIDE OF THE AVIATION SECURITY TEAM WHO REVIEWED UNTOLD HOURS OF SECURITY VIDEO TO TRACK THE SUSPECT IN AYE
ACCOMPLISHES ACCOMPLICES
HE HAS PLEADED IN FACES 20 YEARS IN PRISON
HE HAS PLEADED GUILTY AND FACES 20 YEARS IN PRISON
MS MCBRIDE'S EFFORTS REFLECT OUR COMMITMENT TO COMBAT HUMAN TRAFFICKING AND PROTECT THE SAFETY OF THE TRAVELING PUBLIC
THANKS TO EVERYONE WHO HELPED BRING THIS MAN TO JUSTICE
COMMISSIONER, I'M ALSO HAPPY TO ANNOUNCE THE APPOINTMENT OF MR CHARLES BLOOD TO THE PORT CIVIL SERVICE COMMISSION
MR BLOOD IS A FORMER AIRPORT OPERATIONS DIRECTOR AND HUMAN RESOURCES DIRECTOR AND AN ICONIC LEADER IN THE PORT'S EARLY EFFORTS TO INSTALL EQUITY AND DIVERSITY IN EVERYTHING WE DO
OUR CHAMPION OF DIVERSITY AWARD IS NAMED IN AYE
HONOR
THE CIVIL SERVICE COMMISSION IS A THREE MEMBER VOLUNTEER PANEL THAT SERVES AN IMPORTANT ROLE IN OVERSIGHT FOR THE HIRING AND PERSONNEL MANAGEMENT OF THE PORT OF SEATTLE POLICE OFFICERS
I'M VERY HAPPY CHARLES HAS AGREED TO REJOIN THE PORT IN THIS CAPACITY
HE BRINGS A TREMENDOUS AMOUNT OF INSTITUTIONAL KNOWLEDGE TO THE POSITION
IN TALKING WITH AYE., HE WAS PART OF THE IMPORTANT DECISION TO STAND UP A POLICE DEPARTMENT IN 1972
CHARLES TOLD ME HE INTENDED TO LISTEN IN ON MEETING TODAY
SO I SAY TO AYE., CHARLES, THANK YOU AGAIN FOR YOUR SERVICE TO THE PORT
NEXT, I'D LIKE YOU TO KNOW THAT THE RESILIENCE AND CYBERSECURITY CONTINUE TO BE SOME OF OUR TOP PRIORITIES
WE'VE HAD RECENT LEADERSHIP DISCUSSIONS WITH OUR CYBERSECURITY TEAM TO BETTER PREPARE FOR POTENTIAL ATTEMPTS TO DISRUPT AND CORRUPT OUR CRITICAL SYSTEMS THE RUSSIAN ASSAULT ON UKRAINE HAS CLEARLY RAISED OUR LEVEL CONCERNED ABOUT CYBER VULNERABILITIES AND ATTACKS
OUR ICT TEAM HAS BEEN EXTREMELY VIGILANT IN RECENT WEEKS AS THE THREAT OF RUSSIAN INVASION RAMPED UP
WE KNOW INDIVIDUALS IN THE RUSSIAN GOVERNMENT ITSELF ARE BEHIND MANY RANSOMWARE AND OTHER CYBER ATTACKS
HOWEVER, RUSSIA BASED ATTACKS ARE NOT THE ONLY THREAT WE FACE, AND WE'RE TAKING ALL THE NECESSARY PRECAUTIONS TO PROTECT OUR SYSTEMS OBVIOUSLY, THIS IS A SHARED RESPONSIBILITY THROUGHOUT THE ORGANIZATION TO BE ALERT AND AWARE
AS YOU KNOW, THE PORT WAS A VICTIM OF SPEARFISHING THREATS
THEFTS WERE PAYMENTS FROM THE PORT INTENDED FOR TWO COMMUNITY AGENCIES WERE IMPROPERLY DIVERTED TO A FRAUDULENT ACCOUNT
WE DISCOVERED THE INCIDENTS AND QUICKLY TOOK STEPS TO TIGHTEN OUR PAYMENT PROCEDURES TO PROTECT AGAINST FUTURE ATTEMPTED THEFTS OF THIS KIND
LAW ENFORCEMENT AND OUR SECURITY STAFF ARE CURRENTLY CONTINUING THEIR INVESTIGATIONS, AND I'LL REPORT BACK TO YOU WHEN THAT WORK IS COMPLETE
THERE ARE SERIOUS CYBER THREATS OUT THERE, AND I WANT TO ENSURE THE COMMISSION AND THE PUBLIC THAT WE HAVE A GREAT TEAM THAT IS WORKING AROUND THE CLOCK TO PROTECT OUR SYSTEMS AND OUR ASSETS AND OUR OPERATIONS AS WELL
MOVING TODAY'S COMMISSION MEETING, I LIKE TO HIGHLIGHT A FEW ITEMS ITEM EIGHT C ON OUR AGENDA IS AN ACTION EXECUTING A CONTRACT FOR THE CONCOURSE C EXPANSION COMMISSIONING AGENT
THIS ACTION IS A PART OF MOVING THIS PROJECT FORWARD TO MEET EXISTING DEMAND
AT SEATTLE TACOMA INTERNATIONAL AIRPORT
COMMISSIONER VERIFIES, THE SYSTEMS ARE FUNCTIONING AS DESIGNED
INSURANCE COMPLIANCE WITH LEAD REQUIREMENTS, FIRE CODE AND BUILDING CODES, AND VALIDATES
THE PORT PERSONNEL ARE TRAINED TO OPERATE AND MAINTAIN EQUIPMENT
YOU'LL SEE AN UPDATE ON THE OVERALL STATUS OF THE C ONE BUILDING PROJECT IN THE APRIL COMMISSION MEETING
ITEM EIGHT P IS AN AUTHORIZATION TO REPLACE AIRFIELD SNOW EQUIPMENT THAT IS CURRENTLY OVER 30 YEARS OLD
SNOW EVENTS ARE A REGULAR OCCURRENCE AT SEA AND WE WANT TO EQUIP OUR TEAMS WITH THE RIGHT TOOLS TO DO THE JOB
MATTER OF FACT, WHEN I VISIT MYSELF AND MANAGING DIRECTOR OF AVIATION LANCE LITTLE VISITED BEFORE THE SNOWSTORMS CAME THE CREWS AS THEY WERE GETTING READY FOR ONE STORM
WE'RE LOOKING FORWARD TO THIS NEW EQUIPMENT TO MAKE SURE THEY HAVE EVEN BETTER TOOLS IN THE FUTURE, AND WE THANK THEM FOR ALL THAT THEY DO TO KEEP OUR OPERATIONS GOING
ITEM EIGHT R IS AMENDMENT TO THE LOWER DUWAMISH WATERWAY GROUP MEMORANDUM AGREEMENT
THIS AMENDMENT IS BEING CONDUCTED BY THE LOWER DUWAMISH WATERWAY GROUP IN RESPONSE TO ISSUES RAISED BY THE COMMUNITY AS REFLECTIVE OUR COMMITMENT TO THE COMMUNITY ENGAGEMENT
I LOOK FORWARD TO DISCUSSING THIS SINCE IT'S BEEN PULLED FROM THE CONSENT AGENDA LATER ON
ITEM TEN A ON THE AGENDA, REQUEST YOUR AUTHORIZATION FOR A CONTRACT TO ADDRESS THE SET OF CHEMICALS KNOWN AS POLYFLORAL ALKALI SUBSTANCES, OR PFACS, PRESENT IN MANY SUBSTANCES, INCLUDING THE PHONE WE USE TO FIGHT FIRES AT SEA IN A GROWING CONCERN AND MAY BE HARMFUL TO HUMAN HEALTH
THE PORT HAS PROACTIVELY INVESTIGATED THE POTENTIAL FOR IMPACTS AT SEA ASSOCIATED WITH THE PAST USES OF THE FIREFIGHTING FOAM
A PROACTIVE APPROACH IS NOTEWORTHY SINCE IT ENABLES SEA TO BE ONE, IF NOT THE FIRST, COMMERCIAL AIRPORT IN THE NATION TO TRANSITION TO A PFACS
I SHOULD PRONOUNCE THIS PFACS FREE FOAM AND BEGIN THE ENVIRONMENTAL CLEANUP STATE AS SOON AS THE STANDARDS IN THE FOAM IS AVAILABLE
MORE TO SAY ABOUT THIS DURING THE MEETING
LASTLY, ELEVEN A IS A STAFF REPORT ON OUR 2021 FINANCIAL PERFORMANCE
I'LL HAVE MORE TO SAY ABOUT THAT DURING ITS INTRODUCTION IN THE COMMISSIONER MEETING
COMMISSIONER, THIS CONCLUDES MY REMARKS
THANK YOU
THANK YOU
EXECUTIVE DIRECTOR METRUCK
AT THIS TIME, WE'RE GOING TO TURN TO ERICA CHUNG FOR COMMITTEE REPORTS
YOU MUTED ERICA
SORRY
GOOD AFTERNOON
PRESIDENT CALKINS AND COMMISSIONERS THERE ARE FOUR COMMITTEE REPORTS TODAY
THE AVIATION COMMITTEE CONVENED BY COMMISSIONER CHO AND MOHAMED WELCOME DON HUNTER, AVIATION DIVISION ACTING CHIEF OPERATING OFFICER TO THE AVIATION COMMITTEE AT THEIR FEBRUARY 15 MEETING
DURING THE MEETING, COMMISSIONER DISCUSSED ENABLING PROJECTS SHOWN WITHIN THE PROPOSED SUSTAINABLE AIRPORT MASTER PLAN AND PROJECTS INCLUDED IN THE PORT PORTS CAPITAL IMPROVEMENT PLAN, INCLUDING THE INTERIM FIRE STATION, THE NORTH EMPLOYEE PARKING LOT, AND RELOCATED CHECKPOINT ONE
THERE WERE NO COMMITTEE RECOMMENDATIONS TO THE COMMISSION
THE EQUITY AND WORKFORCE DEVELOPMENT COMMITTEE, CONVENED BY COMMISSIONER CHO AND MOHAMED, ALSO MET
ON FEBRUARY 15, THE COMMITTEE REVIEWED A DETAILED CONCEPT FOR A PROPOSED COMMUNITY EQUITY BOARD
THE COMMITTEE RECOMMENDED EMPHASIZING FLEXIBILITY IN THE COMMUNITY EQUITY BOARD CONCEPT AND REMOVING MORE FORMAL ELEMENTS OF THE CONCEPTS SUCH AS FIXED BOARD MEMBER, TERM LENGTH, REGULAR MEETING TIMES, AND ANNUAL WORK PLAN
COMMISSIONERS ALSO APPROVED AN ACCELERATED TIMELINE FOR DEVELOPING AND PASSING AN EQUITY POLICY DIRECTIVE
COMMISSIONER DISCUSSED INCORPORATING ELEMENTS OF AN ACCESSIBILITY POLICY DIRECTIVE INTO THE EQUITY POLICY DIRECTIVE, BUT ULTIMATELY RECOMMENDED THAT THE COMMISSION PURSUE SEPARATE EQUITY AND ACCESSIBILITY POLICY DIRECTIVES
THE SUSTAINABILITY, ENVIRONMENT AND CLIMATE COMMITTEE, CONVENED BY COMMISSIONERS CALKINS AND HASEGAWA ALSO MET ON FEBRUARY 15
THE COMMITTEE WAS BRIEFED ON LESSONS LEARNED AFTER ONE YEAR OF IMPLEMENTING THE SUSTAINABLE EVALUATION FRAMEWORK TO CAPITAL PROJECTS, INCLUDING INCREASED INVESTMENTS IN SUSTAINABILITY AND EQUITY AND EARLY REVIEW OF PROJECTS
THE COMMITTEE THEN REVIEWED A BRIEFING
I'M SORRY
THE COMMITTEE THEN RECEIVED A BRIEFING ON THE WORLD TRADE CENTER WEST ROOF REPLACEMENT UNDER THE SUSTAINABLE EVALUATION FRAMEWORK AT 30% AND HOW THE SUSTAINABLE DESIGN APPROACH DECISIONS WERE WEIGHED AGAINST ENERGY EFFICIENCIES, MATERIALS, FINANCIAL SUSTAINABILITY AND TENANT IMPACT
COMMISSIONERS WERE VERY COMPLIMENTARY AT THE PROCESS AND CHOICE OF THE GREEN ROOF OPTION FOR THE WORLD TRADE CENTER WEST ROOF REPLACEMENT
THERE WERE NO COMMITTEE RECOMMENDATIONS TO THE COMMISSIONER AT THE FEBRUARY 15 WATERFRONT AND INDUSTRIAL LANDS COMMITTEE MEETING CONVENED BY COMMISSIONER FELLEMAN AND HASEGAWA PORT STAFF PROVIDED BRIEFINGS ON THE CITY OF SEATTLE'S INDUSTRIAL LANDS POLICIES, THE PORT MORATORIUM OF UNDERSTANDING WITH THE SEATTLE AQUARIUM AND THE PUGET SOUND REGIONAL COUNCIL'S FORTHCOMING TRANSPORTATION PLAN
COMMISSIONERS FELLEMAN AND HASEGAWA PROVIDED POLICY GUIDANCE ON EACH TOPIC AND THERE WERE NO RECOMMENDATIONS TO THE COMMISSION
THIS CONCLUDES MY COMMITTEE REPORTS
THANK YOU
OKAY
THANK YOU
ERICA
ARE THERE ANY FOLLOW UP QUESTIONS FROM COMMISSIONERS REGARDING COMMITTEES? IF SO, PLEASE USE YOUR HAND RAISE TOOL
LET US KNOW
OKAY
AT THIS TIME, THE COMMISSION WILL NOW ACCEPT GENERAL PUBLIC COMMENT 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 HAS A LIST OF THOSE PREPARED TO SPEAK
AS THE CLERK CALLS YOUR NAME, WE'LL 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 MUTE THE VIDEO STREAM TO AVOID FEEDBACK
THERE MAY BE A SHORT TIME LAG ON THE VIDEO STREAM
COMMENT TIME WILL BE LIMITED TO TWO MINUTES PER PERSON
CLERK HART, YOU PLEASE CALL THE FIRST SPEAKER
GO AHEAD AND GET THE TIMER UP HERE QUITE QUICKLY
AND OUR FIRST SPEAKER IS MICHELLE MANASSE
MICHELLE, IF YOU'RE ON THE TELEPHONE AT STAR SIX TO UNMUTE
OKAY, WE'LL COME BACK TO MICHELLE MOVING TO KATHY CASEY
THANK YOU, COMMISSIONER AND ADR STAFF
MY NAME IS KATHY CASEY, SMALL BUSINESS OWNER AT SEATAC AND FOUNDING MEMBER OF THE SEATAC
ON BEHALF OF THE SBA AC, WE WANT TO THANK LANCE LITTLE, DAWN HUNTER AND PORT LEADERSHIP FOR THE PORT OF SMALL, MINORITY AND WOMEN OWNED BUSINESSES DURING THESE UNPRECEDENTED PAST COUPLE OF YEARS
WE APPRECIATE THE TIME AND DEDICATION THAT THE ADR TEAM AND PORT LEADERSHIP HAS TAKEN TO ADDRESS THE CHALLENGING SITUATION OF BUILDING OUT SPACES AT SEA FOR EARLY LEASE GROUPS AND OUR APPRECIATIVE OF THE REMEDIES THAT ARE BEING PUT FORTH TODAY TO THE COMMISSION
AND WE ASK FOR YOUR SUPPORT, PLEASE
WE ARE ALSO EXCITED ABOUT THE CHANGES TO BUILD OUT PROCESSES MOVING FORWARD SO THAT SMALL, MINORITY AND WOMEN OWNED BUSINESSES CAN ACCURATELY BID ON NEW BUSINESS OPPORTUNITIES
THANK YOU SO MUCH, AND WE APPRECIATE ALL OF YOUR SUPPORT OF SMALL BUSINESS
HAVE A GREAT DAY
THANK YOU
THANK YOU
MS CASEY
NEXT SPEAKER
YES, OUR NEXT SPEAKER
I DO SEE MICHELLE MANASSE ON THE PHONE
HI
DO YOU HEAR ME? WE CAN
YES
GREAT
SORRY ABOUT THAT
THIS IS MICHELLE MANASSE
I ALSO WOULD LIKE TO THANK AS A MEMBER OF THE FBA AC, I'D LIKE TO THANK THE ADR TEAM, PORT LEADERSHIP, INCLUDING LANCE AND DAWN, AND THE COMMISSION, FOR WORKING SO HARD TO SUPPORT THE PROPOSAL OF A THREE YEAR EXTENSION TO OUR LEASES
THIS WOULD HELP IMMENSELY TO MITIGATE THE COST OVERRUNS DURING OUR BUILD OUTS
REVIEWING THE PROCESS WILL ALSO HELP FUTURE BUILD OUT
THANK YOU SO MUCH FOR WORKING WITH THE SPOKESPEOPLE OF THE FBAAC TO ADDRESS THIS AND OTHER ISSUES THAT IMPACT SMALL, MINORITY AND WOMEN OWNED BUSINESSES
ALL RIGHT
THANK YOU
THANK YOU
MS NANCY
YES
OUR NEXT SPEAKER IS IRIS ANTMAN
IRIS, IF YOU'RE ON A TELEPHONE, STAR SIX TO UNMUTE
YES
HI
GOOD AFTERNOON
MY NAME IS IRIS ANTMAN AND I'M A MEMBER OF SEATTLE AND CRUISE CONTROL, THE PORT MONIKER OF THE GREENEST PORT IN THE UNITED STATES, WHERE THIN WITH THE ANNOUNCEMENT OF 2022 CRUISE SCHEDULE AND THE INCREASE FROM ABOUT 200 SAILINGS IN 2019 TO ABOUT 300 FOR THIS YEAR
THIS IS ASTONISHING AND FLIES IN THE FACE OF THE DIRE PREDICTIONS REPORTED IN LAST MONTH THE UNITED NATIONS REPORT FROM THE INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE, WHICH CLEARLY STATED THAT THE INDICATORS OF THE CLIMATE CRISIS ARE WORSENING QUICKLY
THE PORT SAYS THAT CRUISE IS A CRITICAL PART OF OUR LOCAL AND REGIONAL ECONOMY
WE WON'T HAVE A LOCAL ECONOMY IF WE CONTINUE BUSINESS AS USUAL
IT IS TIME TO CONFRONT THIS BUSINESS AS USUAL MENTALITY IF WE ARE TO AVOID A COMPLETE UNRAVELING OF GLOBAL SOCIETY AND ECONOMICS WITHIN THIS CENTURY
MANY OF US AT THIS MEETING WILL DIE BEFORE THE WORST EFFECTS OF THE CLIMATE CRISIS IN SEATTLE
BUT WHAT ABOUT OUR CHILDREN AND GRANDCHILDREN? THEY WILL HAVE TO DEAL WITH DROUGHTS, HEATS, WILDFIRES AND FLOODING LEADING TO FOOD SCARCITY, CLIMATE MIGRANTS, WAR AND ENVIRONMENTAL DEVASTATION
WE CANNOT REVERSE THE TRAJECTORY WE'RE ON, BUT WE CAN SLOW IT DOWN AND POSSIBLY AVOID THE WORST CONSEQUENCES
HOWEVER, IF YOU CONTINUE TO IGNORE REALITY AND PRETEND NONESSENTIAL CRUISING IS A VIABLE BUSINESS, IF YOU CONTINUE PRETENDING EVERYTHING IS OKAY AND WE SHOULD JUST GET BACK TO NORMAL, HISTORY WILL NOT BE KIND TO YOU
YOUR KIDS AND GRANDKIDS WILL NOT UNDERSTAND WHY YOU CHOSE THE EASY PATH AND NOT THE ONE THAT HOPES TO ENSURE A LIVABLE FUTURE FOR THEM
I REALIZE THESE ARE NOT NECESSARILY ANALOGOUS SITUATIONS
EVEN SO, I MUST SAY THAT IF WE CAN STAND WITH UKRAINE AND EXPRESS SUCH SINCERE AND HEARTFELT CONCERN WITH THE GRAVITAS IT DESERVES, WHY CAN WE NOT COME TOGETHER TO DO WHAT NEEDS TO BE DONE AROUND THE CLIMATE CRISIS TO SAVE OUR PLANET AND ALL BEINGS? THANK YOU
THANK YOU, MS HAMMOND
NEXT SPEAKER
YES
OUR NEXT SPEAKER IS PEGGY PRINCE
PEGGY
YES
WE HEAR YOU
HELLO
MY NAME IS PEGGY PRINCE
WHAT IS IT GOING TO TAKE? WHAT MORE DO YOU NEED TO KNOW BEFORE YOU CHANGE COURSE AND LIMIT THE PORT'S MOST SIGNIFICANT CONTRIBUTIONS TO FOSSIL FUEL EMISSIONS? AS IRIS JUST TOLD YOU LAST WEEK, THE INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE DECLARED THAT HUMANS ARE HARMING THE PLANET FASTER THAN WE CAN ADOPT
UNLESS WE QUICKLY REDUCE FOSSIL FUEL CONSUMPTION, THE RESULTS WILL BE DISASTROUS
BUT ALSO LAST WEEK, THE PORT OF SEATTLE ANNOUNCED A DRAMATIC INCREASE IN CRUISE SHIP SAILINGS FROM 200 BEFORE THE PANDEMIC TO ALMOST 300 THIS YEAR
THROUGH DETAILED RESEARCH, SEATTLE CRUISE CONTROL HAS TERMINAL THAT IN 2019, CRUISE SHIPS AND THEIR ASSOCIATED FLIGHTS PRODUCED GREENHOUSE GAS EMISSIONS EQUAL TO ONE THIRD OF THE EMISSIONS PRODUCED BY THE ENTIRE CITY OF SEATTLE
OVER THE COURSE OF THE WHOLE YEAR, THAT WAS ABOUT 1.9 MILLION METRUCK TONS OF CO2 EQUIVALENTS
ADD TO THAT THE TOXIC AIR POLLUTION AND PARTICLES SULFUR AND NITROGEN, METALS LIKE LEAD, NICKEL AND ZINC THAT DRIFT FROM THE SHIPS INTO OUR NEIGHBORHOODS PLUGGING INTO SHORE PIER WHEN DOCKED, AVERTS A SMALL FRACTION LESS THAN HALF OF 1% OF SHIPPING MISSIONS, YOU ARE IN A PIVOTAL POSITION
YOU CAN MAKE POLICY CHANGES THAT COUNT
FOR EXAMPLE, YOU CAN REDUCE, NOT EXPAND, CRUISE TRAVEL THROUGH SEATTLE
LIMITING THE SIZE OR NUMBER OF THESE NON ESSENTIAL VESSELS WILL GO A LONG WAY TOWARD YOUR GOAL OF BEING THE GREENEST PORT IN NORTH AMERICA
THANK YOU
THANK YOU, MS PRINCE
NEXT SPEAKER, CLERK HART
YES
OUR NEXT SPEAKER IS LISA LUCHAO
HELLO
I WOULD LIKE TO JOIN MY FELLOW MEMBERS OF THE SEATAC AND THANK LANCE DON AND THE POOR LEADERSHIP WHO HAVE WORKED SO HARD ON THE RECOMMENDATION IN FRONT OF THE COMMISSIONERS AND ALSO THANK THE COMMISSIONERS FOR THEIR SUPPORT IN ADVANCE OF THE RECOMMENDATION AND FOR FUTURE ISSUES THAT IMPACT SMALL, MINORITY AND WOMEN OWNED BUSINESSES
THANK YOU VERY MUCH FOR YOUR CONSIDERATION
THANK YOU, MS LUCHA
CLERK HART, SPEAKER
YES
OUR NEXT SPEAKER IS DAVID GOBLE
HI, THIS IS DAVID GOBLE
I'M THE PRESIDENT OF THE FIVE ONE C, THREE VASHON
FIRST GUYS, AND FIRST JUST WANT TO SAY THE SHOCKING HORRIBLE STUFF, BUT WHAT WE SEE HAPPENING IN UKRAINE IS REALLY A SOBERING REMINDER THAT LIBERTY AND FREEDOM AREN'T THE NATURAL TRAJECTORIES OF GOVERNMENT, THE EASIER TRAJECTORIES OF GOVERNMENT
WE SEE WHAT THEY ARE LOOKING AT RUSSIA
THAT'S WHAT HAPPENS NATURALLY
AND SO NOT LOSING WHAT YOU HAVE REQUIRES CONSTANT DILIGENCE AND WORK
AND JUST A GENERAL OBSERVATION
IT SEEMS LIKE THE PEOPLE WHO MOST CRAVE POWER ARE THE WORST ONES TO WIELD IT
SWITCHING TO PLAIN NOISE AT LEAST THREE OF YOU ARE AWARE ABOUT
TWO YEARS AGO, THE PORT PURCHASED FOUR PORTABLE NOISE MONITORS TO AUGMENT ITS SYSTEM OF 24 PERMANENT NOISE AND LETTERS, AND THEY CAME INTO SERVICE ABOUT A LITTLE OVER A YEAR AGO
THREE OF THESE NOISE MONITORS HAVE BEEN USED 67, 62, AND 78 DAYS RESPECTIVELY, OR BETWEEN TWO AND THREE MONTHS, BUT HAVE OTHERWISE BEEN IDLE
THE FOURTH MONITOR HAS BEEN DEPLOYED ON BACHELOR ISLAND FOR THE PAST YEAR
I AM STILL WORKING ON A FULL REPORT ON THE RESULTS OF THAT
MODERN ARE NOT DONE YET
FAIR SKY IS NOT MY FULL TIME JOB, EVEN THOUGH IT FEELS LIKE IT SOMETIMES
MY FULL TIME JOB IS KEEPING MICROSOFT AZURE UP AND ADDING NEW FEATURES TO IT
WHILE OUR REQUEST IS STILL FOR TWO PERMANENT NOISE MONITORS ON VASHON ISLAND TO ADD TO THE EXISTING SYSTEM OF 24 PERMANENT NOISE MONITORS
AT THE LEAST, WE ASK THAT THE CURRENTLY DEPLOYED PORTABLE NOISE MONITORING NOT BEING REMOVED FOR TWO REASONS
ONE, IN THE MONTH OF JANUARY, 60% OF NOISE COMPLAINTS RECEIVED BY THE PORT AND 25% OF UNIQUE COMPLAINING HOUSEHOLDS WERE FROM VASHON ISLAND RESIDENTS IN A RURAL AREA
VASHON ISLAND IS PARTICULARLY SEVERELY IMPACTED BY THE NEW HYPERFOCUSED NEXTGEN FLIGHT PATHS AND PROCEDURES
TWO, THE OTHER THREE PORTABLE NOISE BONNERS HAVE BEEN LIGHTLY USED AND MOREOVER, HAVE BEEN IDLE SINCE FEBRUARY, MAY, AND OCTOBER, RESPECTIVELY
CONSIDERING THAT VASHON ISLAND IS THE COMMUNITY MOST FREQUENTLY AND PERSISTENTLY EXPRESSING THEIR FRUSTRATION, DESPAIR TO THE PORT DUE TO THE NEW NEXT GEN NOISE AND THERE IS APPARENTLY LITTLE DEMAND FOR THESE PORTABLE MONITORS, WE ASK YOU TO EXTEND THE VASHON ISLAND DEPLOYMENT, HOPEFULLY UNTIL THE PROPOSED PERMANENT NOISE MONITORS COME ONLINE
THANK YOU VERY MUCH
THANK YOU, MR GOBBLE
NEXT SPEAKER, CLERK HARY
YES
OUR NEXT SPEAKER IS CHONG PACK
GOOD AFTERNOON, COMMISSIONERS FOR EXECUTIVES AND PORT STAFF
MY NAME IS CHONG PACK
I AM THE GENERAL MANAGER OF PALINO, LOCATED IN THE CENTRAL TERMINAL
I'M HERE TODAY ON BEHALF OF MY TEAM AND POLINO TO THANK YOU FOR YOUR LEADERSHIP, COLLABORATION, AND PARTNERSHIP TO HELP US DEAL WITH THE IMPACT OF COVID AND ALL OTHER CHALLENGES OPERATING HERE AT THE PORT
THE AGENDA ITEM UNDER CONSIDERATION TODAY TO ADDRESS THE EXORBITANT COST OF FACILITY BUILD OUT IS BOTH PRIME EXAMPLE OF RESULT OF THAT COLLABORATION AND PARTNERSHIP
AGAIN, MY TEAM AND I APPRECIATE YOUR SUPPORT AND REMAIN COMMITTED TO PROVIDING OUTSTANDING FOOD AND HOSPITALITY TO ALL OUR GUESTS
THANK YOU VERY MUCH
THANK YOU, MR PACK
NEXT SPEAKER, CLERK HART
YES
THE NEXT SPEAKER IS ROB BENT
THANK YOU
DEAR PORT COMMISSIONER, MY NAME IS ROB BENT AND I REPRESENT THE DEFENDERS OF NORTH SEA TAC PARK
I'M HERE TODAY TO SPEAK AGAINST COMMERCIAL DEVELOPMENT WITHIN THE PARK AND ACT IN DIRECT OPPOSITION TO THE PORT'S RESPONSIBILITIES AND ITS OWN COMMITMENTS TO THE HIGHLY IMPACTED COMMUNITIES SURROUNDING SEATAC AIRPORT
RESEARCH FROM THE UNIVERSITY OF WASHINGTON DEMONSTRATED THAT PEOPLE LIVING NEAR THE AIRPORT ARE EXPOSED TO A DISTINCTIVE STEW OF ULTRAFINE JET EXHAUST PARTICLES LINKED TO THE DEVELOPMENT OF CANCERS, HEART DISEASE, AND LUNG DYSFUNCTION
ONE SEATAC RESIDENT TOLD KOMO NEWS THAT, QUOTE, THERE'S THIS GUNK, THIS OILY FILM THAT I HAVE TO CLEAN OFF MY HOUSE, MY CAR AND BOAT
IT'S COMING FROM THE PLANES
COMMUNITIES WITHIN 10 MILES OF THE PORT EXPERIENCE DISPROPORTIONATE NEGATIVE HEALTH IMPACTS, LITERALLY FROM BIRTH UNTIL DEATH, HIGHER RATES OF PREMATURE AND LOW WEIGHT BIRTHS, HIGHER HOSPITALIZATIONS FOR ASTHMA, STROKE, COPD, AND DIABETES, AND LOWER LIFE EXPECTANCY THAN THE REST OF KING COUNTY
THE PORT STATED TO THE FAA THAT THE PARK'S PURPOSE IS TO COMPENSATE THE AREA'S RESIDENCE FOR CUMULATIVE AIRPORT IMPACTS
TREES, ESPECIALLY MATURE, LARGE DIAMETER TREES, ARE KEY TO CONTROLLING THOSE IMPACTS
NOW, HOWEVER, BOTH THE PORT SUSTAINABLE AIRPORT MASTER PLAN AND THE REAL ESTATE STRATEGIC PLAN AIM TO COMMERCIALLY DEVELOP OVER 100 ACRES OF TREE COVERED LAND IN THIS COMMUNITY, OVER 30 ACRES WITHIN THE PARK ITSELF, INCLUDING DIRECTLY ADJACENT TO TUB LAKE, A REGIONAL NATURAL WONDER THAT MAY BE THE ONLY TRUE BOG LEFT IN SEATTLE
COMMERCIAL DEVELOPMENT WITHIN THE PARK WOULD BE A DEEP BETRAYAL OF THE COMMUNITY AND REPRESENT TRULY OUT OF TOUCH, RECKLESS MANAGEMENT OF THE PARK'S EXCEEDINGLY VALUABLE NATURAL RESOURCE INFRASTRUCTURE
WE WILL HOLD YOU ACCOUNTABLE TO YOUR COMMITMENTS TO THE PEOPLE OF SEATAC AND TO THE ENVIRONMENTAL AND SOCIAL JUSTICE REQUIREMENTS PLACED UPON THE PORT BY STATE AND FEDERAL AGREEMENTS AND MANDATES
LEAVE THIS PARK AS A PARK IN PERPETUITY FOR THE PEOPLE
THANK YOU
THANK YOU, MR BENT
NEXT SPEAKER? YES
OUR NEXT SPEAKER IS JORDAN VANBOOST
JORDAN DIRECTOR, COMMISSIONER AND PORT STAFF
MY NAME IS JORDAN VANBOOST
I COME IN THE PORT OF SEATTLE FOR ITS SOLIDARITY STATEMENT WITH UKRAINE
WAR IS A TRAGEDY EVERYWHERE AND WE MUST ALL DO WHATEVER WE CAN TO HEAL THE ROOTS OF CONFLICT
WHICH BRINGS ME TO YACHTS AND CRUISE SHIPS
THE BIDEN ADMINISTRATION IN EUROPE HAVE TARGETED MEGA YACHTS OWNED BY BILLIONAIRES FOR THEIR CONNECTION TO PUTIN
WHAT ABOUT YACHTS OWNED BY WESTERN BILLIONAIRES, SOME OF WHICH HAVE AN ANNUAL CARBON FOOTPRINT SEVERAL TIMES OUT OF A BOEING 747? WHY NOT CONFISCATE AND BAN ALL SUPER YACHTS DUE TO THEIR WAR ON THE PLANET? THE PORT OF SEATTLE PLANS 296 CRUISE SHIP SAILINGS THIS YEAR
WE ARE TOLD, WITH LITTLE EVIDENCE, THAT THESE BRING WONDERFUL BENEFITS TO THE LOCAL ECONOMY
THOSE STUDIES HAVE REPEATEDLY SHOWN THAT THESE BENEFITS ARE USUALLY OVERSTATED
THE RECENTLY COMPLETED LAUREATE STUDY SUMMARIZING 40 YEARS OF PEER REVIEWED ARTICLES ON THE HARMS OF CRUISE TOURISM HAD THIS TO SAY
OVERALL, WE CAN CONCLUDE THAT CRUISE TOURISM IS A MARITIME ACTIVITY, CAUSING MAJOR IMPACTS ON THE ENVIRONMENT AND HUMAN HEALTH AND WELL BEING, WITH MOST LIKELY SMALL AND DOUBTFUL LOCAL ECONOMIC BENEFITS WHEN NEGATIVE EXTERNALITIES ARE MONITORED AND DISCLOSED
CRUISE IS THE MOST ENVIRONMENTALLY HARMFUL SECTOR OF THE TRAVEL INDUSTRY
WE ARE ALMOST OUT OF TIME TO AVERT ECOLOGICAL CATASTROPHE
PLANS NEED TO BE MADE FOR ADJUST TRANSITION SO THAT AFFECTED WORKERS AND BUSINESSES CAN ADAPT TO A BUSINESS MODEL THAT DOESN'T DESTROY THE ECOSYSTEM OR ADVERSELY IMPACT HUMAN LIVES
I'D LIKE TO ACKNOWLEDGE AND THANK COMMISSIONER HASEGAWA FOR RECENTLY STATING THAT CRUISE AS A REGIONAL BENEFIT IS DEBATABLE
THERE NEEDS TO BE A DEEPER DISCUSSION OF CRUISES COSTS AS WELL AS ITS BENEFITS
WE NEED TO RAMP UP PLANS FOR ADJUST TRANSITION, NOT CELEBRATING RECORD NUMBERS OF CRUISE PASSENGERS IN A CORRESPONDINGLY HUGE INCREASE IN GREENHOUSE GASES
THANK YOU
THANK YOU, MR VANVOST
AND FINALLY, CLERK HART, PLEASE CALL OUR LAST SPEAKER
AYES
OUR LAST SPEAKER TODAY WHO HAS SIGNED UP IS NOW AMY MAXWELL
HELLO
THANK YOU SO MUCH FOR TAKING MY COMMENTS
JUST TO DIVERGE VERY BRIEFLY FROM MY TOPIC OF THE DAY, I WANT TO THANK THE PORT FOR MOBILIZING TO SUPPORT THE UKRAINIAN PEOPLE AND CAUSE AND FOR THE MOVING PRESENTATION TODAY
I ALSO WANT TO THANK THE PORT ON MY TOPIC OF THE DAY ALL THOSE WHO STOOD AGAINST PUTTING AN ELEVEN ACRE AIRPORT EMPLOYEE PARKING LOT IN NORTH SEATAC PARK LAST SUMMER
I'M HERE AS A DEFENDER OF NORTH SEATAC PARK TO ASK YOU, PLEASE KEEP THIS PARK WHOLE
PROTECT THE FORESTED LAND IN OUR COMMUNITY
YOUR MATERIALS TODAY SHOULD CONTAIN A MORE IN DEPTH LETTER FROM ME AND A COPY OF OUR GROUP'S COMMUNITY FOREST CONSENSUS
THE CONSENSUS CALLS FOR SECURING NORTH SEATAC PARK AS A PARK IN PERPETUITY, HALTING DEFORESTATION BY THE PORT WITHIN 2 MILES OF THE AIRPORT, AND FOR A COMPREHENSIVE PLAN TO RESTORE AND EXPAND OUR NEAR AIRPORT FOREST
I UNDERSTAND THE COMPLETION OF AN INVENTORY OF LAND WHERE THE PORT PROPOSES COMMERCIAL DEVELOPMENT INSIDE THE PARK IS EXPECTED THIS MONTH
REGARDLESS OF THAT INVENTORY'S FINDINGS, IT WOULD BE A TERRIBLE MISTAKE TO DESTROY DOZENS OF AYES OF TREES IN THIS COMMUNITY, WHERE THE HEALTH DEPARTMENT RECOMMENDS INCREASING TREE COVERAGE TO PROTECT US FROM EXPOSURE TO AIRPORT POLLUTION THAT IS SHORTENING OUR LIVES AND CAUSING BABIES TO BE BORN PREMATURELY AND UNDERWEIGHT
DOING THIS IN A CLIMATE EMERGENCY AND IN NEIGHBORHOODS WITH HIGH LEVELS OF ENVIRONMENTAL HEALTH DISPARITIES WOULD MAKE THIS SO MUCH WORSE
SO WOULD THE PROXIMITY OF THIS PROPOSED DEVELOPMENT TO CREEK WETLANDS AND TUB LAKE, WHICH ENJOYS SPECIAL PROTECTION AS A SPHAGNUM BOG
THIS PARK WAS ESTABLISHED AT COMPENSATE AREA RESIDENTS FOR CUMULATIVE AIRPORT IMPACTS
DEVELOPING IT WOULD BE A SPECIAL FLAVOR OF BETRAYAL BY THE PORT OF SEATTLE OF THE PEOPLE IN THIS COMMUNITY
THE PORT SHOULD HONOR ITS COMMITMENT TO BE ACCOUNTABLE FOR EQUITABLE POLICIES, QUOTE UNQUOTE, THAT ENSURE RACIAL, SOCIAL AND ENVIRONMENTAL JUSTICE
IT SHOULD HONOR THE COMMITMENT IT MADE AS A SIGNATORY TO THE KING COUNTY CITY'S CLIMATE COLLABORATION TO PROTECT FORESTS AND REDUCE SPRAWL
YOU, AS COMMISSIONER, CAN REQUIRE THE PORT STAFF PROPERLY VALUE OUR LIFE SAVING TREES AND GREEN SPACE AS THE CRITICAL INFRASTRUCTURE THEY ARE, ESPECIALLY AS OUR POPULATION GROWS AND CLIMATE IMPACTS WORSE
AND THANK YOU VERY MUCH
THANK YOU, MS MAXWELL
YOU TAUGHT ME A NEW WORD TODAY
SPHAGNUM LOOK
THAT ONE UP
SPHAGNUM COOL PREHISTORIC CLUB
LOVE IT
OKAY, THAT CONCLUDES OUR SIGN UPS FOR TODAY
IS THERE ANYONE ELSE PRESENT WHO DIDN'T SIGN UP BUT WHO WISHES TO ADDRESS THE COMMISSION? IF SO, PLEASE STATE YOUR NAME AND SPELL IT FOR THE RECORD
OKAY
HEARING? NONE AT THIS TIME
I'LL ASK THE CLERK TO PLEASE GIVE A SYNOPSIS OF ANY WRITTEN COMMENTS THAT WE'VE RECEIVED
THANK YOU, MR COMMISSION PRESIDENT
WE HAVE RECEIVED THREE WRITTEN COMMENTS FOR TODAY'S MEETING
THE FIRST COMES FROM MEGAN COGAT, WRITING TO ASK THE PORT TO MAKE PROGRESSIVE CHOICES REGARDING ALL UNDEVELOPED LAND AROUND THE AIRPORT, ESPECIALLY PARKLAND, TO CONSIDER ENVIRONMENTAL JUSTICE AND AIRPORT COMMUNITIES, AND TO EXPRESS HOPE THAT THE PORT REAL ESTATE STRATEGIC PLAN DOES NOT SUPERSEDE ENVIRONMENTAL JUSTICE AND CLIMATE CHANGES
CONCERNS REGARDING NORTH SEA TACK PARK
AND THEN WE DID RECEIVE WRITTEN COMMENTS SUPPORTING SPOKEN COMMENTS FOR BOTH JORDAN VANVOST AND KNOW AMY MAXWELL
AND THAT CONCLUDES OUR WRITTEN COMMENTS RECEIVED TODAY
THANK YOU, CLERK HART
THIS TIME HEARING NO FURTHER PUBLIC TESTIMONY, WE WILL MOVE TO THE CONSENT AGENDA
ITEMS ON THE CONSENT AGENDA ARE CONSIDERED ROUTINE AND WILL BE ADOPTED BY ONE MOTION
ITEMS REMOVED FROM THE CONSENT AGENDA WILL BE CONSIDERED SEPARATELY IMMEDIATELY AFTER THE ADOPTION OF THE REMAINING CONSENT AGENDA ITEMS AT THIS TIME, THE CHAIR WILL ENTERTAIN A MOTION TO APPROVE THE CONSENT AGENDA COVERING ITEMS EIGHT A, EIGHT B, EIGHT, EIGHT O, AND EIGHT R HAVE BEEN REMOVED FROM THE CONSENT AGENDA AND WILL BE IMMEDIATELY ADDRESSED AFTER THE REMAINING CONSENT AGENDA ITEMS HAVE BEEN APPROVED
IS THERE A MOTION? IN A SECOND
THANK YOU
THE MOTION WAS MADE IN SECOND
COMMISSIONER, PLEASE SAY AYE.OR NAY WHEN YOUR NAME IS CALLED
AND WE'LL BEGIN WITH COMMISSIONER MOHAMED FOR APPROVAL OF THE CONSENT AGENDA
AYE
THANK YOU, COMMISSIONER HASEGAWA
AYE
THANK YOU, COMMISSIONER FELLEMAN
AYE
THANK YOU, COMMISSIONER CHO
AYE
THANK YOU
AND COMMISSIONER CALKINS
AYE
THANK YOU
THERE ARE FIVE AYES AND ZERO NAYS FOR THIS ITEM
TERRIFIC
AND WITH THAT, I CAN SEND AGENDA PASSES
OKAY
AT THIS TIME, WE WILL RETURN TO THE FIRST ITEM THAT WAS PULLED INTO THE RECORD
SO THAT IS ITEM EIGHT O
EXECUTIVE DIRECTOR METRUCK, CAN YOU INTRODUCE THE ITEM, PLEASE? MR COMMISSION PRESIDENT, LET ME GO AHEAD AND READ IT INTO THE RECORD
THANK YOU
THANK YOU
THIS IS ITEM 80, ADOPTION OF THE 2022 LOCAL AND REGIONAL GOVERNMENT POLICY PRIORITIES FOR STAFF TO ENGAGE WITH LOCAL AND REGIONAL OFFICIALS AND OTHER PARTNERS IN SUPPORT OF THESE PRIORITIES
COMMISSIONER, YOU RECEIVED A BRIEFING ON THIS ITEM AT THE LAST COMMISSION MEETING, AND WE'VE INCORPORATED YOUR FEEDBACK INTO THE DOCUMENT THAT YOU HAVE BEFORE YOU
I UNDERSTAND THERE MAY BE AN ADDITIONAL CHANGE HERE, AND THAT'S WHY IT WAS PULLED, BUT WE URGE YOUR ADOPTION OF THIS ONCE YOU FINISH YOUR WORK
WE ALSO HAVE HERE AVAILABLE AS DAVE KAPLAN TO ANSWER ANY QUESTIONS
OKAY
COMMISSIONER FELLEMAN, YOU HAD SUGGESTED AMENDMENT FOR THIS, AND SO I TURN THE FLOOR TO YOU
THANK YOU VERY MUCH
COMMISSION PRESIDENT CALKINS
I JUST WANTED TO, IN GENERAL, MAKE A POINT OF THE FACT THAT CONTINUING COLLABORATION WITH KING COUNTY IN PARTICULAR, IS VERY IMPORTANT TO ME, AND THE MORE OPPORTUNITIES WE HAVE TO POINT THAT OUT, AND I THINK WE'VE BEEN MAKING GREAT STRIDES TO THAT END
ONE PARTICULAR PROJECT THAT WE'RE WORKING ON THAT I'M PARTICULARLY EXCITED ABOUT IS THE COLLABORATIVE FUNDING OF A STUDY TO LOOK AT MUNICIPAL SOLID WASTE FOR THE CREATION OF SUSTAINABLE AVIATION JET FUEL
AND SO THE LAST ITEM ON THIS PAGE, LET ME JUST SEE HERE
I'LL REFER YOU TO THE PAGE
I'M SORRY, I DIDN'T HAVE IT RIGHT HERE, ESPECIALLY NOT THE LAST PAGE
IT IS RIGHT HERE
IT'S ON PAGE THREE OF ELEVEN FOR THIS ITEM
AND ALL IT DOES IS INSERT AT THE LAST LINE OF THAT PARAGRAPH ON CLIMATE AND MARITIME MARITIME CLIMATE AND AIR ACTION PLAN M CAP, WE INSERT AS WELL AS SUPPORT FOR OUR PARTNERSHIP WITH KING COUNTY ON THE MUNICIPAL SOLID WASTE STUDY
SO, FRED, WITH THAT, I'M GOING TO ASK THAT YOU MOVE THE MAIN MOTION SO THAT WE CAN THEN MAKE AN AMENDMENT TO THAT MOTION
THE MAIN MOTION BEING THE ADOPTION OF THE 2022 LOCAL AND REGIONAL GOVERNMENT POLICY PRIORITIES
YES
SO MOVED
IS THERE A SECOND? THANK YOU, COMMISSIONER CHOL
AND NOW, COMMISSIONER FELLEMAN, IF YOU WOULD LIKE TO PROPOSE THE AMENDMENT
YES, I WAS MISTAKEN
IT IS ON PAGE ELEVEN RIGHT BEFORE ADDRESSING HOMELESSNESS
WE JUST ADD TO THE END OF THAT PARAGRAPH ABOVE THAT IT SAYS SUPPORT FOR POLICY MEASURES THAT EQUITABLY ACCELERATE THE TRANSITION TO CLEANER ENERGY SOURCES FOR THE MARITIME INDUSTRY, AS WELL AS SUPPORT FOR OUR PARTNERSHIP WITH KING COUNTY ON THE MUNICIPAL SOLID WASTE STUDY
SO STARTING AT AS WELL AS IS THE SIMPLE, I HEAR THAT AS A MOTION TO AMEND WITH THAT ADDITION
IS THERE A SECOND? 2ND
THANK YOU FOR THE SECOND
COMMISSIONER MOHAMED
AT THIS TIME, THE MAIN MOTION AND PRIMARY AMENDMENT ARE ON THE FLOOR
SO, COMMISSIONERS, PLEASE UNMUTE YOURSELF FOR QUESTIONS AND COMMENTS
WE'LL BEGIN WITH COMMISSIONER MOHAMED
NO COMMENTS ON THIS
CLERK HART, YOU CAN CONTINUE THE ROLL
THANK YOU
COMMISSIONER HASEGAWA
NO QUESTIONS OR COMMENTS
THANK YOU, MR FELLEMAN
NO FURTHER QUESTIONS OR COMMENTS
THANK YOU, COMMISSIONER CHO ME
THANK YOU
THANK YOU
COMMISSIONER CALKINS
NONE FOR ME EITHER
THANK YOU
OKAY
BARRING ANY FURTHER DISCUSSION ON THE PRIMARY AMENDMENT, WE WILL MOVE FORWARD FOR A VOTE ON THE AMENDMENT
SO, COMMISSIONERS, PLEASE SAY I OR NAY WHEN YOUR NAME IS CALLED FOR THE VOTE ON THE PRIMARY AMENDMENT BEGINNING WITH COMMISSIONER MOHAMED AYE
YOU
COMMISSIONER HASEGAWA
AYE
THANK YOU
COMMISSIONER FELLEMAN
AYE
THANK YOU
COMMISSIONER CHO
AYE
THANK YOU
COMMISSIONER CALKINS
AYE
THANK YOU
THERE ARE FIVE AYES AND ZERO A FOR THIS ITEM
ALRIGHT
THE AMENDMENT PASSES
IS THERE ANY FURTHER DISCUSSION ON THE MAIN MOTION AS AMENDED? PLEASE USE THE HANDRAISE TOOL IF SO, AND I DO NOT SEE ANY HANDS RAISED CURRENTLY
OKAY, GO AHEAD AND CLERK HART AND CALL THE ROLL FOR THE VOTE ON THE MAIN MOTION AS AMENDED
ON THE MAIN MOTION AS AMENDED, I DO SEE EXECUTIVE DIRECTOR METRUCK
YOU MEAN IT'S? SORRY ABOUT THAT
I JUST WANT TO ADD THAT I FULLY SUPPORT THIS
THIS IS AN IMPORTANT PART OF OUR WORK AND I FULLY SUPPORT IT AS AMENDED
THANK YOU
THANK YOU
FOR THE MAIN MOTION AS AMENDED BEGINNING WITH COMMISSIONER MOHAMED AYE
THANK YOU, COMMISSIONER HASEGAWA
AYE
THANK YOU, COMMISSIONER FELLEMAN
AYE
THANK YOU
COMMISSIONER CHO
AYE
THANK YOU
COMMISSIONER CALKINS
AYE
THANK YOU
THERE ARE FIVE AYES AND ZERO NAYS FOR THIS ITEM
AND THE MAIN MOTION AS AMENDED PASSES
ALL RIGHT, CLERK HART, PLEASE READ THE NEXT POLL ITEM INTO THE RECORD AND THEN EXECUTIVE DIRECTOR METRUCK CAN INTRODUCE THAT ITEM
THANK YOU
THIS IS AGENDA ITEM EIGHT
R AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO EXECUTE AN 8TH AMENDMENT TO THE LOWER DU DUWAMISH WATERWAY GROUP MEMORANDUM OF AGREEMENT
ALRIGHT
EXECUTIVE DIRECTOR METRUCK, YOU INTRODUCED THE ITEM
YEAH, I'M SORRY, I WAS JUST GETTING FLIPPING TO THE RIGHT SPOT
COMMISSIONER, AS MENTIONED IN MY OPENING REMARKS, THIS AMENDMENT IS BEING CONDUCTED BY THE LOWER DUWAMISH WATERWAY GROUP, LUDWIG, IN RESPONSE TO ISSUES RAISED BY THE COMMUNITY IS REFLECTIVE OUR COMMITMENT TO COMMUNITY ENGAGEMENT
WE HAVE A PRESENTATION, I BELIEVE, BY KATHY BANNOCK, A SENIOR MANAGER OF ENVIRONMENTAL PROGRAMS KATHY HI
GOOD AFTERNOON, COMMISSIONERS
EXECUTIVE DIRECTOR METRUCK, IT'S BEEN A PACKED MEETING WITH A LOT OF DEEP CONVERSATION, SO WE'RE HERE TODAY TO ASK FOR AUTHORIZATION TO AMEND AN EXISTING COST SHARING AGREEMENT THAT WE HAVE WITH THE LOWER DUWAMISH WATERWAY GROUP PARTNERS, AND THOSE ARE THE CITY, THE COUNTY, BOEING AND THE PORT
AND THE AMENDMENT IS TO INCLUDE THE COST AND CONTRACTING TO PERFORM WORK ON THE LOWER DUWAMISH WATERWAYS SUPERFUND SITE
THAT IS ABOVE WHAT THE EPA CLEANUP ORDER REQUIRES BECAUSE IT'S ABOVE WHAT IS REQUIRED
IT NEEDS TO BE SPECIFICALLY AGREED TO BY THE PARTIES UNDER THE MOA, EVEN THOUGH THE DOLLAR AMOUNT IS SMALL
AND SOME BACKGROUND FOR YOU
LAST YEAR, EPA PROPOSED MODIFYING THE CLEANUP LEVEL FOR CARCINOGENIC POLY AROMATIC HYDROCARBONS FOR THE LOWER DUWAMISH WATERWAY SUPERFUND SITE, AND IT WAS BASED ON MORE RECENT SCIENCE IN THE PROPOSED EXPLANATION OF SIGNIFICANT DIFFERENCE, WHICH IS A DOCUMENT THAT CAN CHANGE LANGUAGE THAT'S IN THE RECORD OF DECISION, WHICH IS THE DOCUMENT THAT LAYS OUT HOW THE CLEANUP WILL BE DONE
THEY USE THIS NEW SCIENCE TO INCREASE THE CLEANUP LEVEL
THE COMMUNITY EXPRESSED STRONG CONCERNS ABOUT THIS CHANGE, AND THE FOUR LOWER DUWAMISH WATERWAY GROUP PARTIES LISTEN TO THAT CONCERN
AND WE'RE NOW PROPOSING TO CONTINUE TO MOVE FORWARD ON THE DESIGN USING THE MORE STRINGENT CLEAN UP STANDARDS THAT ARE IN THE EXISTING RECORD OF DECISION, RATHER THAN USING THE NEW STANDARDS THAT WERE ESTABLISHED IN THE EXPLANATION OF SIGNIFICANT DIFFERENCE
IN OTHER WORDS, THE DESIGN WILL INCLUDE ADDITIONAL CLEAN UP ACTIONS FOR AREAS WHERE CARCINOGENIC POLY AROMATIC HYDROCARBONS ARE ABOVE THE ORIGINAL REMEDIAL ACTION LEVELS IN THE ROD IN THE RECORD OF DECISION, BUT BELOW THE LEVELS IDENTIFIED IN THE EXPLANATION OF SIGNIFICANT DIFFERENCE
THOUGH THE COST FOR THIS IS SMALL, IT IS A STEP IN THE RIGHT DIRECTION TOWARDS HONORING THE COMMITMENT TO THE COMMUNITY, WHICH IS WHY WE'RE BRINGING IT FORWARD
THE COST FOR THIS DESIGN, AS I SAID, CHANGE IS SMALL, BUT WE DON'T KNOW YET THE TOTAL COST FOR THE ACTUAL CLEAN UP CHANGE THAT WILL BE ADDRESSED AS WE'RE FARTHER ALONG IN THE DESIGN, AND IT'LL BE ADDRESSED IN FUTURE ORDERS AND COST SHARING AGREEMENTS, BECAUSE RIGHT NOW, LORD DUWAMISH WATERY GROUP HAS JUST SIGNED ON TO DO THE DESIGN OF THE CLEANUP
SO WITH THAT, ARE THERE ANY QUESTIONS? I KNOW THERE'S A LOT OF VERBIAGE IN THERE
OKAY, COMMISSIONER, PLEASE UNMUTE YOURSELVES FOR QUESTIONS AND COMMENTS AND STAFF
CLERK HART, CAN YOU CALL THE ROLL? YES
WE'LL BEGIN WITH COMMISSIONER FELLEMAN AS HE PULLED THE ITEM THANK YOU
I JUST WANTED TO THANK STAFF FOR BRINGING THIS FORWARD AND TO HAVE THIS MOVING FORWARD WITH ALL THE LUDWIG MEMBERS IN A UNIFORM COMMITMENT TO AT LEAST DOING THIS EVALUATION OF THE PH POLY AROMATIC HYDROCARBONS, WHICH ARE REFLECTED MOSTLY OF FUEL SOURCES
SO THAT WE KNOW THAT WHEN WE'RE DOING THIS CLEANING UP THAT WE'RE LOOKING AT ITS MAXIMUM FEASIBLE ABILITY TO DO SO
AND SO LOOKING FORWARD TO SEEING THE RESULTS OF THIS AND FOR THE SMALL COST SHARED EQUITABLY
I THINK THIS IS A GREAT STEP FORWARD AND REFLECTS THE LETTER THAT WE HAD WRITTEN TO THE EPA WITH THE COUNTY AND THE CITY THAT I HAD WORKED ON
SO THANK YOU
THANK YOU, COMMISSIONER FELLEMAN
COMMISSIONER MOHAMED
NO QUESTIONS
BUT I DO THINK THE COMMENTS THAT COMMISSIONER FELLEMAN HAS SAID AND THIS IS IMPORTANT WORK, AND I SUPPORT IT
THANK YOU, COMMISSIONER MOHAMED
COMMISSIONER HASEGAWA
NO QUESTIONS
JUST A COMMENT THAT WHENEVER THERE'S AN OPPORTUNITY TO EXCEED THE PUBLIC'S EXPECTATIONS, I THINK IT IS IMPORTANT THAT WE EMBRACE IT
SO THANK YOU SO VERY MUCH FOR YOUR WORK ON THIS IMPORTANT ENDEAVOR, AND I LOOK FORWARD TO SUPPORTING IT
THANK YOU
COMMISSIONER HASEGAWA
COMMISSIONER CHO, I ALSO WOULD LIKE TO SUPPORT AND EXPRESS MY SUPPORT FOR THIS INITIATIVE, AND IT'S PART OF A LONG ROAD THAT WE HAVE AHEAD OF US ON THIS LOWER DU DUWAMISH WATERWAY CLEANUP WORK
AND SO THANK YOU FOR YOUR WORK, AND I WILL ALSO BE SUPPORTING THIS
THANK YOU
COMMISSIONER TOW
COMMISSIONER CALKINS, NO FURTHER COMMENTS
ALL RIGHT, IS THERE A MOTION AND A SECOND TO APPROVE ITEM EIGHT? R
FRED, DO YOU WANT TO MOVE IT MOVED
THANK YOU VERY MUCH
SECOND MOTION WAS MADE
AND SECONDED, IS THERE ANY FURTHER DISCUSSION OF THE MOTION? JUST RAISE YOUR HAND
IF SO, I DO NOT SEE ANY HANDS RAISE CURRENTLY
OKAY, CLERK HART, GO AHEAD AND CALL THE ROLL
COMMISSIONER, PLEASE SAY IRONY WHEN YOUR NAME IS CALLED FOR THE VOTE, BEGINNING WITH COMMISSIONER MOHAMED AYE
THANK YOU, COMMISSIONER HASEGAWA AYE
THANK YOU
COMMISSIONER FELLEMAN
AYE
THANK YOU
COMMISSIONER CHO
AYE
THANK YOU
COMMISSIONER CALKINS
AYE
THANK YOU
THERE ARE FIVE AYES AND ZERO NAYS FOR THIS ITEM
ALL RIGHT, THE MOTION PASSES
MOVING ON IN THE AGENDA TO UNFINISHED BUSINESS
WE HAVE ONE ITEM BEFORE US TODAY
THIS IS A FOLLOW UP TO ORDER NUMBER 2020 115 ISSUED IN DECEMBER
CLERK HART, PLEASE READ THE ITEM INTO THE RECORD
WE'LL THEN HEAR FROM EXECUTIVE DIRECTOR METRUCK TO INTRODUCE THE ITEM
THANK YOU
THIS IS AGENDA ITEM NINE A AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO EXTEND ALL ADR MULTI PREMISE LEASES AND SINGLE USE LEASES AND LEASE GROUPS TWO, THREE, FOUR AND FOUR A BY THREE YEARS
WITH THE EXCEPTION OF LEASE NUMBER 23 61 AS DEFINED IN THE AUTHORIZATION MEMO AND INTRODUCTORY AND INTERMEDIATE SINGLE USE KIOSK LEASES, COMMISSIONER SUPPORT A STRONG INTEREST IN SUPPORTING THE ECONOMIC VIABILITY OF OUR AIRPORT, DINING AND RETAIL TENANTS
THEY PROVIDE IMPORTANT SERVICES FOR THE TRAVELING PUBLIC AND OUR SIGNIFICANT SOURCE OF AIRPORT REVENUE
BASED ON CONCERNS EXPRESSED BY SEVERAL RETAIL TENANTS ABOUT THE HIGH COST OF AIRPORT CONSTRUCTION, WE CONDUCTED A DETAILED REVIEW OF OUR BUILDING POLICIES AND PROCEDURES
WE RECOGNIZE THAT OUR PROCEDURES AND UNIQUE CHALLENGES OF CONSTRUCTING RETAIL SPACES AT THE AIRPORT CAN RESULT IN BUILD OUT COSTS MUCH HIGHER THAN TYPICAL COMMERCIAL SETTINGS
AS A RESULT, WE REVISE SOME OF OUR RETAIL CONSTRUCTION THAT WILL REDUCE COSTS AND PROVIDE MORE CERTAINTY TO TENANTS
BECAUSE SOME OF THE TENANTS FACE SIGNIFICANT EXPENSES AND DELAY, WE HAVE CONCLUDED THAT WE SHOULD GRANT THEM THREE YEARS ADDITIONAL LEASE TERM
THIS ADDITIONAL TIME WILL ALLOW THEM TO AMORTIZE THE HIGHER UNANTICIPATED COSTS
WE APPRECIATE THE PARTNERSHIP AND CONSTRUCTIVE INPUT PROVIDED BY OUR ADR TENANTS, WHICH HELPED US ACHIEVE A FAIR AND EQUITABLE OUTCOME FOR THE BUSINESSES IN THE PORT PRESIDENT HERE TO PRESENT TODAY OUR MANAGING DIRECTOR OF AVIATION, LANCE LITTLE, DON HUNTER, INTERIM AVIATION CHIEF OPERATING OFFICER, AND CLIA MOORE, SENIOR MANAGER, AIRPORT DINING AND RETAIL
I'LL TURN IT OVER TO YOU, LANCE
THANK YOU VERY MUCH, STEVE, AND GOOD AFTERNOON, COMMISSIONER
ON SEVERAL OCCASIONS, YOU HAVE HEARD ME OUTLINE THE LONG TERM VISION FOR THE AIRPORT, FROM GETTING SKYTRACK FIVE RATING TO AIRPORT SERVICE QUALITY TOP 25 LEVEL OF SERVICE OPTIMAL THROUGHOUT THE AIRPORT, GUARANTEED
AS YOU'RE AWARE, WE RECENTLY ACHIEVED SKYTRACKS FOUR STAR RATING, LIKE SEVERAL YEARS AHEAD OF SCHEDULE
AND THERE ARE MANY PIECES OF THE PUZZLE THAT ACTUALLY GETS US THERE, RIGHT? THE PORT SATELLITE OR INCON COURSE THAT WE OPENED LAST YEAR, THE INTERNATIONAL ARRIVAL FACILITY THAT SPECTACULAR REVEAL THAT WE JUST HAD RECENTLY THAT STEVE SPOKANE ABOUT EARLIER UPGRADES TO OUR RESTROOMS, THE SIGNAGE IN THE AIRPORT, AND OUR SECURITY CHECKPOINT
WAIT TIMES IMPROVEMENT
THESE ARE THE SUM ONE VERY IMPORTANT PIECE OF THIS PUZZLE IS OUR CONCESSIONS PROGRAM, OUR AIRPORT DINING AND RETAILER ADR, AS WE CALL IT
FOR SURETY, WE WON'T GET TO OUR LONG TERM GOALS WITHOUT A SUCCESSFUL ADR PROGRAM
OUR SUCCESS IS DEPENDENT ON THE SUCCESS OF OUR ADR PARTNERS, AND WE HAVE A VESTED INTEREST IN THEM SUCCEEDING
NOW, OF COURSE, WE FOCUS ON ASSISTING ALL OF OUR ADR TENANTS, BUT WE HAVE TO PAY ATTENTION TO OUR SMALL WOMEN OWNED AND MEN ARE OWNED BUSINESSES BECAUSE THEY ARE TYPICALLY THE MOST VULNERABLE
OVER THE LAST FEW YEARS, WE HAVE ADVERTISED AND AWARDED CONTRACTS UNDER VARIOUS LEASE GROUPS, AND FOR EACH AWARDED CONTRACT, THE ADR TENANT GOES THROUGH A COMPREHENSIVE PLANNING, DESIGN AND CONSTRUCTION PROCESS
HOWEVER, THE AIRPORT ENVIRONMENT IS REALLY A COMPLEX ENVIRONMENT, ESPECIALLY WHEN YOU COMPARE IT TO STREET LOCATION
WE'RE ESPECIALLY BUILDING IN AN AIRPORT, BUT ALSO BUILDING IN AN EXISTING FACILITY IN TERMINAL DINING AND RETAIL TYPICALLY REQUIRES SUBSTANTIAL BUILD OUT COST NOT USUALLY ENCOUNTERED BY OTHER TYPES OF BUSINESSES THAT OPERATE AT THE AIRPORT
SO YOU RENT A CAR COMPANY, YOUR OFF SITE AIRPORT PARKING, YOUR GROUND TRANSPORTATION COMPANIES TYPICALLY DO NOT HAVE TO HAVE THAT LEVEL OF INVESTMENT OR THAT LEVEL OF RISK
OVER THE LAST FEW LEASE GROUPS, SOME TENANTS EXPERIENCE MUCH HIGHER THAN EXPECTED COSTS
AND YOU'LL HEAR MORE ABOUT WHEN DONE
AND KRISTIE AND AS STEVE SAID, THE TENANTS RAISED CONCERNS TO US
WE WENT THROUGH A BUILD OUT ANALYSIS
WE DEVELOPED RECOMMENDATIONS FOR THE ADR TENANT BUILD OUT THAT ADDRESS THESE ADDITIONAL COSTS
YOU'LL ALSO HEAR MORE ABOUT THAT
THE STAFF WENT THROUGH AN EXERCISE THAT IDENTIFIED NEW BEST PRACTICES FOR TENANTS DESIGN AND CONSTRUCTION AND GOING FORWARD, OF COURSE, THAT WOULD IMPACT THE FUTURE LEASES OR LEASE GROUP
OUR FOCUS TODAY IS TO ADDRESS THE IMPACT FROM THE PAST
SO THE APPROACH THAT WE TOOK WAS ONE THAT WE CONSIDER TO BE PRACTICAL, PRAGMATIC, AND FAIR, AS OPPOSED TO DOING ANALYSIS ON EVERY SINGLE SPACE IMPACTED, WHICH WOULD TAKE A VERY LONG TIME
WE TOOK A SAMPLE THAT REPRESENTS ALL OF THE IMPACTED LEASE GROUPS
SO KIOSK, AS AN EXAMPLE, WAS NOT INCLUDED BECAUSE THEY WERE NOT AWARDED IN A LEASE GROUP AND THE INVESTMENT WAS SIGNIFICANTLY LOWER THAN THE TYPICAL INVESTMENT
AND THE TERM AS WELL IS MUCH SHORTER
SO THE RECOMMENDATION THAT YOU WILL HEAR TODAY IS FOR ADDITIONAL TERM
WE CONSIDERED A WIN WIN OUTCOME FOR BOTH THE TENANTS AND SEA IN TERMS OF FUTURE REVENUE GENERATION
SO WITHOUT ANY FURTHER ADO, I WILL HAND OVER TO DON AND KELLY AND DON WILL KICK US OFF AND TAKE US INTO MORE DETAIL
I THINK WE MIGHT WANT TO BRING UP THE PRESENTATION
YES
THANK YOU VERY MUCH, LANCE
IF WE CAN GO TO THE NEXT SLIDE BACKGROUND AS WAS MENTIONED, WE HAVE THE MOTION IN DECEMBER 2016 THAT COMMISSIONER BOWMAN ASKED US TO GO AND LOOK AT THE TENANT BUILD OUT ANALYSIS THAT WE CONDUCTED IN 2019 AND BRING FORTH SOME RECOMMENDATIONS
AND I JUST WANT TO GIVE THE BACKGROUND TO SOME OF THE NEW COMMISSIONERS
IN 2019, THE TENANTS CAME TO EXECUTIVE DIRECTOR, METRUCK AND ADR STAFF AND TALKED ABOUT THE EXORBITANT COSTS THAT WERE INCURRED IN LEASE GROUPS TWO, THREE, FOUR, AND FOUR A
KALI AND I HAD THE PLEASURE OF ENTERING THE PORT IN LEASE GROUP TWO
AND SO WE LIVED THROUGH TWO, THREE, FOUR, AND FOUR A
SO WE HAVE A GREAT UNDERSTANDING OF HOW THAT HAPPENED
AND WE MET WITH OUR TENANTS TO COLLECTIVELY DISCUSS THE COST OF DESIGN AND CONSTRUCTION
AND WHAT WE DID IS WE DECIDED TO EMBARK ON A LEAN PROCESS AND IMPROVEMENT TO FIGURE OUT SOME LONGER TERM SOLUTIONS FOR THE PROBLEMS THAT WE WERE HEARING
NEXT SLIDE, PLEASE
SO THE FIRST THING THAT WE DID WAS A VOICE OF THE TENANT MEETING
AND WHAT WE DID IS WE BROUGHT TOGETHER ALL OF OUR TENANTS
THEY'RE ARCHITECTS, ENGINEERS, CONTRACTORS, SUBCONTRACTORS
WE'RE ALL INVITED TO THIS MEETING TO HAVE AN OPEN DISCUSSION WITH US AND OUR PROCESS IMPROVEMENT TEAM ON WHAT WERE SOME OF THE ISSUES THAT THEY WERE INCURRING AND WHAT WERE SOME OF THE STICKING POINTS AND RESOUNDINGLY
WE HEARD THAT THESE WERE THE FOUR MAIN AYES OF CONCERN FOR ALL OF THE PARTIES THAT CAME TO THE MEETING
WE HAD SOME OTHER AREA CONCERNS THAT WE PUT IN A PARKING LOT THAT WE'RE DEALING WITH SEPARATELY
BUT OUR OVERALL CONCERNS WITH THE DESIGN REVIEW PROCESS, ON AVERAGE, IT TAKES ABOUT A YEAR FOR A TENANT TO GET THROUGH THE DESIGN REVIEW
THE PORT DESIGN STANDARDS, THE PORT ON TOP OF CODE
WE DO HAVE SOME STANDARDS THAT WE HAVE IN DIFFERENT AREAS
BUILDING AND FIRE CODE REVIEW AND PERMITTING WERE THE FOUR MAIN AREAS AT THAT TIME THAT WERE THE MAJOR STICKING POINTS
NEXT SLIDE, PLEASE
SO WHAT WE DID IS WE GOT TOGETHER WITH THE SUBJECT MATTER EXPERTS, OUR FACILITIES AND INFRASTRUCTURE GROUP, FIRE BUILDING PROJECT MANAGEMENT OPERATIONS
WE HAD AN OUTSIDE CONSULTANT THAT ALSO CAME IN TO DOCUMENT SOME OF THESE
AND WE WENT THROUGH SEVERAL ROUNDS OF THE PROCESS IMPROVEMENT PROCESS
AND AT THE END, THIS IS SOME OF THE RECOMMENDATIONS THAT WE CAME OUT WITH
OUR BEST PRACTICES MOVING FORWARD IN CONSTRUCTION, WE'RE GOING TO BEGIN A NEW ADR MASTER PLANNING EFFORT, AS YOU'RE AWARE, BECAUSE WE GAVE ADDITION A TERM FOR COVID THAT PUSHED BACK OUR LEASE GROUPS
BUT IT'S ALSO GIVING US ANOTHER OPPORTUNITY TO LOOK AT EVERYTHING
LEASE GROUPS
OUR MASTER PLANNING EFFORT IS NOT JUST ABOUT THE LEASE GROUPS
IT'S ABOUT LOOKING AT OUR CONTRACTS
IT'S LOOKING ABOUT THE TERMS AND ABOUT MAG AND PERCENTAGE AND ALL THOSE THINGS THAT WE'VE BEEN STRUGGLING WITH THROUGH COVET THAT WE KNOW OUR ISSUES
AND SO THIS IS GIVING US AN OPPORTUNITY TO MEET WITH OUR LEGAL TEAM AND OTHER VESTED PARTIES TO REALLY LOOK AT HOW WE PUT TOGETHER OUR LEASES AND THEN ALSO HOW WE PUT TOGETHER OUR LEASE GROUPS
ONE OF THE THINGS WE HEARD FROM OUR LARGER AND SMALL TENANTS IS THAT THIS PROCESS REALLY NEEDS TO START WHEN WE PUT THOSE LEASE DOCUMENTS ON THE STREET, HOW WE LOOK AT CAP X AND HOW WE LOOK AT OTHER THINGS THAT ARE INVOLVED IN THAT PROCESS BECAUSE THOSE ADD TO THE COSTS
WE ALSO TALKED ABOUT EVALUATING CURRENT STANDARDS AND CREATING SPECIFIC STANDARDS FOR AR TENANTS
ONE OF THE THINGS IS WE IDENTIFIED THERE'S SEVERAL THOUSAND PAGES OF STANDARDS THAT ARCHITECTS AND ENGINEERS HAVE TO LOOK THROUGH
AND ONE THING THAT DIVERSITY AND CONTRACT
AND WE'VE WORKED WITH AVIATION COMMERCIAL MANAGEMENT IS TO BRING IN NEW, SMALLER MINORITY ARCHITECTS, ENGINEERS, SUBCONTRACTORS
AND IT CAN BE VERY DAUNTING TO HAVE TO GO THROUGH 4000 PAGES OF STANDARDS
AND SO WE WANT TO MAKE THAT PROCESS EASIER FOR THEM
AND SO THAT WE CAN GET NEW BLOOD IN AND WORK IN THE PROGRAM
WE EVALUATE BASED BUILDING CONDITIONS BASED ON A NEW ADR MASTER PLANNING EFFORTS
WHAT WE FOUND IN THESE LEASE GROUPS IS THAT PEOPLE WOULD DESIGN AT 30%, AND THEN WE WOULD SHUT DOWN THE OLD TENANT, LET THEM GET IN THE SPACE THEY DEMO
AND WHAT THEY'VE DESIGNED TO WAS NOT ACTUALLY WHAT WAS IN THE SPACE, WHICH, OF COURSE, WOULD TRIGGER A REDESIGN, WHICH, OF COURSE, TRIGGERS MORE MONEY FOR THE TENANT
AND IF YOU'RE A SMALLER MINORITY BUSINESS, THAT EXTRA $2,500 OR $5,000 OR WHATEVER THAT TRIGGERS FOR A REDESIGN TO GET VERY EXPENSIVE BEFORE DESIGN STARTS, WE WOULD GO IN AND DEMO THE SPACE INTO A QUOTE UNQUOTE, AND I SAY, QUOTE UNQUOTE SHELL, BECAUSE I DIDN'T KNOW THAT THAT MEANT MANY THINGS TO MANY PEOPLE
SO WE WILL HAVE TO DEFINE WHAT COLD SHELL MEANS
BUT WE WOULD GO IN WITH A TENANT, DEMO THE SPACE SO THEY CAN START DESIGNING TO WHAT IS ACTUALLY IN THERE
THIS WILL INCREASE OUR COSTS UP FRONT FOR THE PORT, BUT IN THE LONG RUN, WE WON'T BE HERE TALKING ABOUT THIS BECAUSE WE ARE ACTUALLY WORKING WITH THE TENANT TO MAKE SURE THAT THEY'RE BUILDING IT AS IS CONDITIONS
AFTER DEMO, WE VERIFY AS BUILD CONDITIONS WITH THE NEW TENANT
WE DO A WALK THROUGH WITH THEM, AND IF THERE'S ANY PORT ADDRESS, BASE BUILDING CONDITIONS THAT WE NEED TO DEAL WITH, WE DEAL WITH THAT UPFRONT BEFORE THE TENANT GETS INTO SPACE
LOOKING AT OUR STANDARDS, REALLY REVIEWING STANDARDS THAT IMPACT THE AVIATION, COMMERCIAL MANAGEMENT BUSINESS PARTNERS
IT WILL BE DISCUSSED AND APPROVED PRIOR TO IMPLEMENTATION SO WE CAN UNDERSTAND THE COST THAT IS GOING TO IMPACT THE TENANTS
SO WE CAN TALK THROUGH THAT, AND THEN WE CAN NOTIFY THEM BEFORE A LEASE GROUP OR BEFORE THEY START CONSTRUCTION AND THEY DON'T OPEN THE 4000 PAGES, AND THEN THERE'S A NEW STANDARD THERE FOR THEM
SO WE REALLY WANT TO MAKE THIS A PARTNERSHIP WITH OUR DIFFERENT GROUPS WHO CONTROL OUR STANDARDS AND THAT WE ARE UNDERSTANDING THE BUSINESS IMPACTS TO THEM AS WELL, AND THEN ALSO HAVING OUR SUBJECT MATTER EXPERTS AT THE TABLE WHEN KEY PLANNING DECISIONS WERE MADE FOR OUR NEW COMMISSIONERS
YOU MAY NOT KNOW THIS, BUT WHEN WE STARTED, WHEN KALIA AND I CAME IN AND LEASED GROUP TWO, WHAT WE FOUND IS THAT THE LAST MASTER PLAN WAS KIND OF MADE IN A VACUUM
AND SOME OF OUR KEY STAKEHOLDERS WHO UNDERSTOOD OUR INFRASTRUCTURE AND OUR BUILDING AND OUR FIRE CODES WERE NOT REALLY AT THE TABLE
SO WE DIDN'T REALLY MAKE A LOT OF GOOD DECISIONS ON HOW WE PUT THAT LEASE GROUP TOGETHER AND MOVING FORWARD AS WE'RE MASTER PLANNING, WE WILL MAKE SURE THOSE KEY STAKEHOLDERS ARE AT THE TABLE
OUR FIRE BUILDING FACILITIES AND INFRASTRUCTURE, PROJECT MANAGEMENT OPERATIONS, AND REALLY WORKING WITH THOSE TEAMS TO MAKE SURETY THAT WE GET THE RIGHT MIX AT THE RIGHT TIME WITH THE RIGHT INFRASTRUCTURE
AND IF WE DO NEED TO PUT IN A PROJECT, WE CAN DO SO NEXT SLIDE, PLEASE
SO RIGHT NOW, I WILL TURN OVER TO OUR NEW SENIOR MANAGER FOR AIRPORT, DINING AND RETAIL, MS KALIA MOORE
THANK YOU, DON
AS LANCE MENTIONED EARLIER, WE CHOSE TO TAKE A SAMPLE THAT COVERED ALL OF OUR LEASE GROUPS THAT WERE AFFECTED
AND SO WE CHOSE TO PICK THE CENTRAL TERMINAL, WHICH HAS A CROSS SECTION OF BOTH SMALL AND LARGE BUSINESSES WITH A VARIETY OF CATEGORIES SUCH AS FOOD AND BEVERAGE, RETAIL AND CONVENIENCE
AND AS I MENTIONED, THE TENANT MIX EXPANDS OVER ALL OF THE LEASE GROUPS THAT WERE IMPACTED WHICH LEASE GROUP TWO THROUGH FOUR A
FOR OUR ANALYSIS, WE FOCUS ON THE IMPACT OF PORT DESIGN AND CONSTRUCTION PROCESS FROM THE TENANT PERSPECTIVE
WE COMPARE THE PERFORMER FOR THE INITIAL CAPITAL INVESTMENT WHICH WAS PROVIDED DURING THEIR COMPETITIVE BIDDING PROCESS AND COMPARED THAT TO THE CERTIFIED CONSTRUCTION COSTS THAT WERE PROVIDED AT THE COMPLETION OF THEIR PROJECTS
WE ALSO EVALUATED THE CURRENT LEASE TERM WITHOUT THE COVID RELEASE THAT WAS PROVIDED, AS WELL AS THE TENANTS PROJECTED NET PROFIT MARGIN, WHICH WE ANALYZED AGAINST THEIR ACTUAL SALES
NEXT SLIDE, PLEASE
THE FOLLOWING TABLE IS A SAMPLE OF THE ANALYSIS THAT WAS CONDUCTED AND WHILE WE DID CONDUCT THIS ANALYSIS ACROSS ALL THREE CATEGORIES, THE PORTION OF THE TABLE IS A QUICK SNAPSHOT OF SOME OF THE CAPITAL EXPENDITURE OVERAGES FOOD AND BEVERAGE HAVING THE LARGEST VARIANCES OVERALL, AS THE PORT STANDARDS FOR FOOD AND BEVERAGE LOCATIONS ARE SUBSTANTIALLY COMPLEX
WE CAN PROVIDE ADDITIONAL DETAIL TO THIS IF YOU'D LIKE TO THEN AT A LATER DATE
NEXT SLIDE, PLEASE
SO AFTER REVIEWING ALL THE VARIABLES OR THE EFFECTIVE TENANT SAMPLE, STAFF IS RECOMMENDING AN ADDITIONAL THREE YEARS TERM TO BE RIGHT TO ALL THE AFFECTED TENANTS
THE STAFF ANALYSIS IDENTIFIED THAT THIS IS SUFFICIENT TIME TO RECEIVE FURTHER RETURN ON THE ADDITIONAL INVESTMENT THAT WAS DUE TO THE PORT DESIGN AND CONSTRUCTION PROCESS
THE ANALYSIS ITSELF YIELDED THE TIME FRAME TO RECOUP THE ADDITIONAL CAPITAL INVESTMENT COST WAS APPROXIMATELY TWO AND A HALF YEARS
STAFF ROUNDED THAT NUMBER UP TO THREE YEARS AS AN ADDITIONAL MEASURE OF EQUITY, CONSIDERING OPERATIONAL COST INCREASE, BUT ALSO PROVIDING A MORE STREAMLINED TIME FRAME FOR THE LEASE ADMINISTRATION AND ACCOUNTING DEPARTMENTS
AND THAT CONCLUDES THE REMAINDER OF OUR PRESENTATION
ANY QUESTIONS? CLERK HART, CAN YOU CALL THE ROLL FOR COMMISSIONER COMMENTS AND QUESTIONS? ABSOLUTELY
DANNY
WITH COMMISSIONER MOHAMED GREAT
THANK YOU FOR THE VERY INFORMATIVE PRESENTATION
MRS MORE, MS HUNTER, AND DIRECTOR LANCE LITTLE
THANK YOU ALL FOR YOUR COMMITMENT TO SMALL BUSINESSES AND ALSO THE PASSION THAT YOU GUYS BRING TO THIS WORK
MY ONLY QUESTION IS, ARE WE GOING TO BE ABLE TO AND THIS MIGHT BE AN ERRAND QUESTION, BUT SOME OF THE RECOMMENDATIONS THAT HAVE BEEN PRESENTED TODAY, WOULD WE BE ABLE TO EVALUATE THAT AS PART OF THE SMALL BUSINESS RECOVERY AD HOC COMMITTEE? OR MAYBE MISS HUNTER, YOU MIGHT
I DON'T MIND, AARON, IF YOU WANT TO GO FIRST
SO THE ANSWER TO THAT IS YES
BUT FIRST, WHAT WE NEED TO DO IS TALK TO OUR INTERNAL SMES AND TALK TO THEM ON HOW WE OPERATIONALIZE THAT, BUT DEFINITELY WILL BE A PART OF THE CONVERSATION WITH OUR SMALL BUSINESSES AND GET THEIR FEEDBACK, AS WE HAVE PROMISED IN THE PAST, TO GET THEIR FEEDBACK ON OUR PROCESSES
AND THEN WE NEED TO TAKE THAT INTERNALLY WITH OUR PROJECT MANAGEMENT GROUP, OUR FIRE BUILDING FACILITIES AND INFRASTRUCTURE, AND THEN FIGURE OUT HOW WE OPERATIONALIZE THOSE RECOMMENDATIONS OR THOSE RECOMMENDATIONS THAT WE'VE ADOPTED
GREAT
THANK YOU
YEAH, THANKS, DON
OKAY, GREAT
MY LAST QUESTION IS MS HUNTER, WHEN WE ARE TALKING ABOUT DIVERSITY AND CONTRACTING IN GENERAL, ARE WE BREAKING DOWN OR DO WE HAVE A BREAKDOWN OF THOSE MINORITY OWNED BUSINESSES? A LOT OF THE TIME, IF YOU HEAR THE WORD BIPOC AND PUGET IN THIS BIG UMBRELLA, DO WE HAVE SOME DATA ON THE BREAKDOWN OF WHO EXACTLY THOSE BUSINESSES ARE AND WHAT PARTS OF THE REGION THEY'RE COMING FROM? SO IF YOU'RE TALKING SPECIFICALLY ABOUT THE PORT, DINING AND RETAIL, THEN YES, WE DO
AND THEN I KNOW DAVID FAT AND I SEE YOU ON, BUT I KNOW THAT ME AND ALSO TRACKS THAT INFORMATION AS WELL
AND ME AND I WORK VERY CLOSELY TOGETHER TO ALIGN THAT INFORMATION
OKAY, GREAT
AND SO I GUESS I'LL JUST REQUEST INFORMATION ON THAT THAT WOULD BE HELPFUL TO BE ABLE TO SEE
AND I SEE COMMISSIONER HOUSED OUT WAS KNOWING HER HEAD
YES
SO IT WOULD BE GOOD INFORMATION FOR US TO HAVE
ALL RIGHT, LET'S CONTINUE THROUGH COMMISSIONERS
YES
A COMMISSIONER AT CALKINS IDC
MR MCMADON HAD AYE
HAND UP
I'M NOT SURE IF HE WANTED TO RESPOND
SORRY, DAVE, WHY DON'T YOU GO AHEAD? FIRST, I JUST WANTED TO LET THE COMMISSIONERS KNOW THAT WE HAVE THE ANNUAL RESULTS FROM OUR DIVERSITY AND CONTRACT PROGRAM AND WILL BE BRIEFING YOU NEXT MONTH ON THAT AND PROBABLY SCHEDULING SOME JUST TWO, TWO ONES OR ONE ON ONES, IF YOU'D LIKE AN ADVANCED PREVIEW
THAT WOULD BE GREAT
THANK YOU
AND ME AND I ARE ALSO PRESENTING DAVE AT THE DIVERSITY COMMITTEE AS WELL
GREAT
WE'LL MOVE ON TO COMMISSIONER HASEGAWA NEXT
NO QUESTIONS
I JUST WANTED TO SAY THANK YOU FOR THIS THOUGHTFUL PRESENTATION
I LOOK FORWARD TO VOTING IN SUPPORT OF IT
AND I THINK THAT WHATEVER WE CAN DO TO PRIORITIZE THE WELL BEING OF OUR TENANTS, PARTICULARLY DURING ONGOING UNCERTAINTY AND TO MITIGATE ANY SORT OF IMPACT UNFORESEEN COSTS, I JUST WILL HARDLY SUPPORT IT
SO THANK YOU SO VERY MUCH
AND I LOOK FORWARD TO SUPPORTING
THANK YOU
THANK YOU, COMMISSIONER FELLEMAN
WELL, THANK YOU
THANK YOU
DON AND KAYLA, I JUST REALLY APPRECIATE YOU GUYS TAKING THE DEEP DIVE AND LOOKING INTO THIS REQUEST THAT COMMISSIONER BOWMAN REALLY LED AND COMING UP WITH A SOLUTION THAT REALLY SEEMS TO BE WORKING FOR THE ADR TENANTS AND THE PORT AND LANCE AND EVERYBODY YOU GAVE THEM TOGETHER
YOU GOT THE DATA TOGETHER
YOU FOUND A WAY FORWARD
AND MOST IMPORTANTLY IS AS WE MOVE FORWARD, THE SOLUTION THAT WORKS FOR EVERYBODY, THE BLANK SLATE THAT WE KNOW WHAT WE'RE GETTING INTO BEFORE WE GET GOING TOO FAR
SO THANK YOU VERY MUCH
IT'S AN IMPORTANT PROGRAM AND KEEPING PEOPLE HOME, ESPECIALLY AT THIS TIME
SO THANKS AGAIN
THANK YOU, COMMISSIONER
COMMISSIONER CHO
YEAH
FIRST OF ALL, I JUST WANT TO COMMEND DON AND THE TEAM
THIS IS A LONG TIME COMING
I WANT TO ALSO GIVE A HUGE SHOUT OUT TO SBAC AND THE MEMBERS OF THAT GROUP WHO COME OUT AND BROUGHT THIS TO OUR ATTENTION
I ALSO WANT TO MAKE SURE THAT THEY KNOW THAT THIS WAS EVERY BIT THE INTENTION OF THE STAFF TO MAKE THIS RIGHT IN WHOLE
AND WE REALIZE IT TOOK A LONG TIME, BUT IT WAS PART OF THE DUE DILIGENCE PROCESS TO MAKE IT RIGHT IN WHOLE
AND SO I APPRECIATE YOUR PATIENCE WITH EVERYONE
IN ADDITION TO THE TREMENDOUS EFFORT BOTH LANCE DON AND YOUR TEAM HAVE PUT TOGETHER, I DID HAVE A QUESTION, HOWEVER, IN YOUR ANALYSIS, I'VE HEARD A LOT OF REASONS FOR WHY THESE COSTS HAVE GONE UP OR GOING BEYOND
BUT FROM BASED ON THE ANALYSIS OR YOUR PERSPECTIVE, LIKE WHAT PORTION OF THE COST OVER ONE WAS DUE TO PROCEDURE VERSUS SOMETHING LIKE THE BASE BUILDING SCHEMATICS NOT BEING ACCURATE
RIGHT
SO I THINK THOSE ARE TWO VERY DIFFERENT THINGS
IT'S ONE THING TO HOLD UP CONSTRUCTION BECAUSE OF PERMITTING AND OTHER THINGS, BUT IT'S ANOTHER THING IF WHATEVER INFORMATION WE WERE GIVING YOUR TENANTS WAS NOT ACCURATE BEFORE I LET TALIA SPEAK, BUT I THINK THERE'S A COLLECTIVE OF THINGS
ONE OF THE THINGS IS WHEN WE PUT THOSE LEASE DOCUMENTS ON THE STREET, THE CAP X THAT WE PUT IN THERE, WE NEED TO DO SOME REEVALUATION ON THAT
IF WE KNOW WHAT IT ACTUALLY COSTS PER SQUARE FOOTAGE AND WE'RE SAYING IT'S $300 SQUARE FOOT AND WE KNOW IT'S ACTUALLY $1,000 SQUARE FOOT, AND THAT'S WHAT WE'RE BUILDING OUR MODEL OFF OF, AND THEN THAT'S WHAT THEY'RE BUILDING THEIR MODEL OFF OF, THEN IT CAUSES SOME INACCURACY
THE OTHER THING IS BY THE TIME THEY BID TO THE TIME THEY ACTUALLY GO AND BID FOR CONSTRUCTION IS A LENGTHY AMOUNT OF TIME THAT WE'RE TRYING TO SHORTEN
SO THE TIME I THINK ABOUT BIDDING AND THE CONTRACTOR SAYS IT'S X AMOUNT, AND THEN A YEAR AND A HALF LATER, OF COURSE, BECAUSE OF INFLATION, IT'S A DIFFERENT DOLLAR AMOUNT
SO THAT'S PART OF THE UPFRONT AS WELL, AND THEN DEPENDING ON THE UNIT
AND SO THAT'S WHY IT WAS SO DIFFICULT
THAT'S WHY WE DID A CROSS SECTION INSTEAD OF UNIT BY UNIT, BECAUSE IT REALLY DEPENDS ON THE UNIT
SOME UNITS HAD SEVERE BASE BUILDING ISSUES
SOME UNITS HAD SEVERE INFRASTRUCTURE ISSUES
SO IT'S NOT REALLY ONE BLANKET ANSWER
IT IS A CULMINATION OF A LOT OF DIFFERENT THINGS, A COMEDY OF ERRORS, AS YOU WOULD SAY, TO THINGS THAT JUST KIND OF HAPPENED THAT ADD ON TO THE COST AND THEN NOT BEING NAIVE TO THE POINT THAT SOME OF IT IS ALSO OUR TENANTS ARE NEW AND OUR ARCHITECTS AND ENGINEERS ARE NEW AND NEW DOING BUSINESS WITH THE PORT
AND IT TOOK A WHILE FOR THEM TO REALLY UNDERSTAND OUR STANDARDS AND OUR PROCESSES TO BE ABLE TO GET OVER THE HUMP
BUT THAT'S ONE OF THE THINGS THAT MAN'S GROUP AND MY GROUP WANT TO DO IS BRING IN THOSE NEW CONTRACTORS AND GET THEM OVER THAT HUMP SO THAT WE HAVE NEW BLOOD INSIDE THE PORT
LANCE OR KALIA, I DON'T KNOW IF YOU WANTED TO ADD TO THAT
YEAH
MAYBE BEFORE KALIA BECAUSE SHE HAS ALL THE DETAILS
BUT THAT'S ONE OF THE REASON, COMMISSIONER, THAT WE HAD THE APPROACH THAT WE TOOK ON BECAUSE IT REALLY WAS DIFFERENT FROM THE VARIOUS DIFFERENT UNITS
ONE UNIT MAY FACE THIS ISSUE, ANOTHER UNIT FACE THAT ISSUE
AND IF WE HAD TO GO THROUGH EVERY SINGLE UNIT, WE WOULD HAVE BEEN DOING THIS FOR A VERY LONG TIME, AND WE WOULDN'T HAVE A RECOMMENDATION RIGHT NOW
IT'D BE PROBABLY NEXT YEAR SOMETIME BEFORE WE HAVE A RECOMMENDATION
SO WE TOOK THE PRAGMATIC APPROACH, AS KALIA MENTIONED, THAT, HEY, LET'S TAKE A SAMPLE THAT'S REFLECTIVE OF THE WHOLE
AND SO WE COULD MAKE A MUCH QUICKER RECOMMENDATION SO OUR TENANTS COULD AT LEAST HAVE A RESOLUTION IN A MUCH MORE TIMELY FASHION
YOU BOTH DID SO GREAT WITH ANSWERING THAT QUESTION
I APPRECIATE THOSE COMMENTS
AND THE REASON I ASK IS BECAUSE I THINK ONE OF YOUR THOUGHTS IS BECAUSE PEOPLE I THINK WHEN I FIRST JOINED THE PORT, I WAS VERY BULLISH ON RECRUITING MINORITY BUSINESS OWNERS TO THE PORT
AND I STILL AM, AS YOU BOTH KNOW, I'M SENDING PEOPLE YOUR WAY ALL THE TIME
BUT I ALSO ALWAYS HAVE THIS ASTERISK
AND THIS CAVEAT THAT RUNNING A RESTAURANT AT THE PARK IS NOT RUNNING A RESTAURANT IN BELL TOWN
IT IS A COMPLETELY DIFFERENT ANIMAL
AND IF YOU THINK THAT YOU'RE GOING TO GET AWAY WITH THE NORMAL PRACTICES OF RUNNING A RESTAURANT IN BELL TOWN, AT THE PORT, YOU'RE IN FOR A RUDE AWAKENING
AND SO I THINK PART OF IT IS INCUMBENT ON US TO MAKE SURE WE'RE INFORMING POTENTIAL TENANTS OF HOW CHALLENGING THIS REALLY IS
RIGHT
AND OF COURSE, THERE'S A HUGE BURIEN ON US TO MAKE SURE WE'RE TRANSPARENT, THE PROCESS IS GOOD AND THAT WE'RE NOT PUTTING CRAZY COSTS ON
IS IT UNDER SELLING OR SELLING? I DON'T KNOW
BUT YOU KNOW WHAT I'M SAYING? LIKE, WE WANT TO BE REALISTIC WITH WHAT WE ARE SELLING TO WENDY BUSINESSES
AND I'M REALLY GLAD WE CAN MAKE THIS RIGHT IN THIS CASE
BUT MY HOPE IS THAT GOING FORWARD, WHEN WE RECRUIT, WHEN THE BUSINESSES THAT THEY'RE KIND OF READ AND FULLY AND THEY KNOW WHAT THEY'RE GETTING THEMSELVES INTO, SO WE DON'T HAVE TO REGURGITATE THIS
SO I'M REALLY GLAD TO SEE THAT THERE'S NEW PROCEDURES AND POLICIES THAT ARE BEING PUT IN PLACE
I THINK PART OF THAT CAN ALSO BE MAKING SURE THAT WHEN WE GO OUT AND EVANGELIZE ABOUT DOING BUSINESS SUPPORT, THAT PEOPLE ARE TOTALLY AWARE OF HOW DIFFERENT IT REALLY IS
SO THOSE ARE JUST MY COMMENTS
AND ONE OF THE OTHER THINGS I THINK WE FORGOT TO MENTION IS THAT WE ARE BRINGING IN A THIRD PARTY TO KIND OF LOOK AT TO HELP US THROUGH THIS PROCESS
KALI AND I ARE VERY PASSIONATE ABOUT IT
AND ALL THE GROUPS THAT WORK AT THE PORT ARE VERY PASSIONATE ABOUT THEIR DIFFERENT AREAS
AND WE JUST NEED A DIFFERENT SET OF AYES TO COME IN AND TAKE OUR PASSIONS AND MAKE IT INTO ONE DOCUMENT WHERE WE CAN MAKE IT MORE COMPREHENSIVE FOR THE TENANT
THANK YOU, COMMISSIONER CALKINS
YEAH
THANK YOU
CLERK HART, A COUPLE OF COMMENTS
THE FIRST IS TO SAY, AS I HAVE HAD THE OPPORTUNITY RECENTLY TO TRAVEL AGAIN AND KIND OF SEEING OTHER AIRPORTS THROUGH THE LENS OF BEING AN AIRPORT COMMISSIONER, YOU BEGIN TO PICK UP ON WHAT MAKES FOR A VIBRANT AIRPORT AND WHAT DETRACTS FROM A PASSENGER EXPERIENCE
AND CLEARLY ONE OF THE KEY CHARACTERISTICS OF REALLY VIBRANT AIRPORTS IS A VERY SOLID ADR PRESENCE THERE
AND SO WE WANT TO MAKE SURE THAT WE ARE TAKING OUT ANY UNNECESSARY HURDLES OR EXPENSES OR CHALLENGES FOR THOSE FOLKS WHO ARE COMING TO MAKE OUR AIRPORT A PLACE THAT PEOPLE WOULD WANT TO VISIT EVEN IF THEY WEREN'T TRAVELING
AND SO I THINK STEPS LIKE THIS ARE IMPORTANT TO THAT
THE OTHER THING I WOULD SAY IS THAT ONE MIGHT LOOK AT THIS DECISION AND BE A LITTLE BIT CONCERNED ABOUT WHEN WE EXTEND THE LEASE
MAYBE WE LIMIT THE OPPORTUNITY FOR NEW PARTNERS TO COME IN
BUT I DO WANT TO CONTEXTUALIZE IT A LITTLE BIT AND REMIND PEOPLE THAT WHEN EFFECTIVELY THESE LEASES ARE IN THEIR EXTENDED PERIODS, WE WILL ALSO BE OPENING BRAND NEW SPACES WITH TONS OF NEW RETAIL OPPORTUNITIES FOR THOSE WHO ARE NOT CURRENTLY PRESENT
SO I DON'T FEEL LIKE PARTICULARLY IN THIS MOMENT, WE ARE EXCLUDING OTHER OPPORTUNITIES FOR FOLKS TO GET INVOLVED IN A WAY THAT MAYBE IN THE PAST DURING LESS EXPANSIONARY PERIOD, THAT MAY HAVE BEEN THE CASE
SO AGAIN, MY THANKS TO ALL OF YOU FOR THE PRESENTATION
IS THERE A MOTION AND SECOND, TO APPROVE ITEM NINE? A SO MOVED
SECOND, I DON'T EVEN TRY MAKING MOTIONS ANYMORE
YOU CAN HAVE MY SECOND
CLERK HART, I'LL LET YOU SORT ALL THAT OUT
WHO GETS IN THE OFFICIAL MINUTES? IS THERE ANY FURTHER DISCUSSION ON THE MOTION? IF SO, PLEASE RAISE YOUR HAND
GO AHEAD
QUICK CARTON, CALL THE ROLL REMINDER TO SAY AYE OR NAY
COMMISSIONERS, WHEN YOUR NAME IS CALLED FOR THE MOTION ON THE VOTE ON THE MOTION BEGINNING WITH COMMISSIONER MOHAMED AYE
SECOND
AYE
THANK YOU, COMMISSIONER
HASEGAWA? AYE
THANK YOU, COMMISSIONER FELLEMAN
ALRIGHT
THANK YOU, COMMISSIONER CHO
AYE
THANK YOU, COMMISSIONER CALKINS
AYE
THANK YOU
THERE ARE FIVE AYES AND ZERO AYES FOR THIS ITEM
THANK YOU SO MUCH
YOU BET
WITH THAT, THE MOTION PASSES
NEXT ON THE AGENDA IS NEW BUSINESS CLERK HART
READ THE ITEM INTO THE RECORD AND THEN WE'LL HEAR FROM EXECUTIVE DIRECTOR METRUCK
THANK YOU
THIS IS AGENDA ITEM TEN
A AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO ADVERTISE AND AWARD A PROFESSIONAL SERVICES CONTRACT TO PROVIDE INVESTIGATION, REMEDIATION AND STRATEGIC SUPPORT TO ADDRESS PIER AND POLYFLOOR OLIK HILL SUBSTANCES
PFAS ON PORT OF SEATTLE PROPERTIES AND FACILITIES COMMISSIONERS AS MENTIONED IN MY OPENING REMARKS, THIS NEXT ITEM IS TO REQUEST YOUR AUTHORIZATION FOR A CONTRACT TO ADDRESS A SET OF CHEMICALS KNOWN AS PFAS
THE PORT HAS BEEN AN INNOVATIVE LEADER IN ITS WORK TO UNDERSTAND AND TRY TO ADDRESS PFAS RELATED CONCERNS
FOR EXAMPLE, PORT AVIATION, ENVIRONMENTAL AND FIRE DEPARTMENT STAFF HAVE PARTICIPATED IN NATIONAL EXPERT ADVISORY GROUPS TO ADVOCATE FOR FEDERAL AND STATE GUIDANCE FOR TRANSITION TO PFAS FREE PHONES, AND FOR THE DEVELOPMENT OF PFAS REGULATION
THE PORT HAS ALSO PROACTIVELY INVESTIGATED THE POTENTIAL FOR IMPACTS THAT SEA IS ASSOCIATED WITH THE PAST USES OF THE FOAM
THIS WORK IS BEING DONE AHEAD OF REGULATION TO UNDERSTAND POTENTIAL RISKS TO THE ENVIRONMENT AND TO ENSURE THAT THERE ARE NO KNOWN CURRENT RISKS TO THE COMMUNITIES SURROUNDING THE AIRPORT
WE TEND TO CONTINUE THIS PROACTIVE APPROACH THAT WE CAN BEGIN ENVIRONMENTAL CLEANUP WITH THE STATE AS SOON AS STANDARDS ARE IN PLACE
PRESENTERS ARE MEGAN KING, SENIOR ENVIRONMENTAL PROGRAMS MANAGER, AND SARAH COX, SENIOR MANAGER
I BELIEVE I'M TURNING IT OVER TO MEGAN AYES
CORRECT
THANK YOU VERY MUCH
THANK YOU
EXECUTIVE DIRECTOR METRUCK
GOOD AFTERNOON, COMMISSIONERS
I'M MEGAN KING AND SUPPORTED HERE BY MY SENIOR MANAGER, SARAH COX
WE ARE BOTH WITH AVIATION, ENVIRONMENT AND SUSTAINABILITY
WE ALSO HAVE ASSISTANT CHIEF STARKEY AND WENDY PIER ONLINE WITH US TODAY AS NEEDED FOR QUESTIONS
THEY ARE BOTH HERE TO SUPPORT ANY QUESTIONS RELATED TO FIRE DEPARTMENT ACTIONS COMPLETED SO FAR
AND NEXT SLIDE, PLEASE
SO OUR REQUEST TODAY IS FOR COMMISSIONER AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO ADVERTISE AND AWARD A PROFESSIONAL SERVICES CONTRACT TO SUPPORT THE PORT WITH INVESTIGATION AND REMEDIATION OF PER AND PER FLORAL ALCOHOL SUBSTANCES
EVERYONE DID A GREAT JOB WITH THAT TODAY
CONGRATS ON PORT PROPERTIES AND FACILITIES
IT'S OUR ANTICIPATION THAT THIS CONTRACT WILL BE USED PRIMARILY BY THE AVIATION ENVIRONMENTAL DIVISION
HOWEVER, THE CONTRACT WILL BE STRUCTURED TO ALLOW FOR USE BY OTHER AVIATION AND MARITIME DIVISIONS IF NEEDED
NEXT SLIDE, PLEASE
PFAS ARE A GROUP OF MANMADE CHEMICALS THAT WERE DEVELOPED IN THE 40S, AND THEY'RE STILL IN USE TODAY IN A VARIETY OF COMMERCIAL AND INDUSTRIAL PRODUCTS
IT'S NOW UNDERSTOOD THAT EXPOSURE TO PFAS CAN RESULT IN AN INCREASED RISK OF MULTIPLE TYPES OF HEALTH EFFECTS, INCLUDING INCREASED CANCER RISK
NEXT SLIDE, PLEASE
PFAS IS RELEVANT TO US AT SEA BECAUSE IT IS FOUND IN FIREFIGHTING PHONE
IT'S USED IN MULTIPLE AREAS OF THIS PHONE BY THE PORT FIRE DEPARTMENT IS CURRENTLY REQUIRED BY THE FAA AIRPORT CERTIFICATION, AND THIS IS A NATIONAL REQUIREMENT, SO IT'S NOT SPECIFIC TO US
THE FAA IS IN THE PROCESS RIGHT NOW OF REVISING THE CERTIFICATION REQUIREMENT, AND THAT'S EXPECTED TO BE COMPLETED SOMETIME IN EARLY 2023
NEXT SLIDE, PLEASE
SO, AS DIRECTOR METRUCK HAD MENTIONED, THERE'S BEEN A NUMBER OF PROACTIVE STEPS THAT HAVE BEEN COMPLETED TODAY AHEAD OF THE FINALIZATION OF REGULATION
THIS REGULATION DEVELOPMENT IS UNDERWAY AT BOTH THE STATE AND THE FEDERAL LEVEL, BUT IT'S NOT FINALIZED YET IN EITHER PLACE
AND GIVEN THE HISTORICAL USE AND THE CURRENT PRESENCE OF FIREFIGHTING PHONE THAT CONTAINS PFAS AT SEA, WE INITIATED THESE PROACTIVE ACTIONS IN ABOUT 2018 TO START TAKING A LOOK AT WHAT WE HAD
THIS PROACTIVE WORK HAS DONE A GOOD JOB TO REDUCE OPPORTUNITIES FOR WORKER EXPOSURE WHERE POSSIBLE
TO DO THAT, IT'S INVENTORY THE LOCATIONS OF BOTH HISTORICAL FIREFIGHTING PHONE RELEASES AS WELL AS CURRENT STORAGE VOLUME LOCATIONS, VOLUMES, AND LOCATIONS, AND ALSO INCLUDED COLLECTION OF SOME PRELIMINARY DATA TO UNDERSTAND THE POTENTIAL FOR ENVIRONMENTAL IMPACTS ASSOCIATED WITH THOSE HISTORICAL FARM RELEASES TO THE GROUND SURFACE
THESE PRELIMINARY DATA HAVE CONFIRMED THAT THERE ARE NO KNOWN OFF SITE RISKS ASSOCIATED WITH THE HISTORICAL FOAM USE AT SEA
NEXT SLIDE, PLEASE
AND SO ALTHOUGH THAT PRELIMINARY DATA DOES INDICATE THAT WE DON'T HAVE CURRENT KNOWN OFFSITE RISKS, THESE DATA HAVE CONFIRMED THAT THERE IS PFAS PRESENT IN SOIL AND GROUNDWATER AT SEA
AND BECAUSE OF THIS, WE'RE EXPECTING THAT THERE WILL BE AN ADDITIONAL ENVIRONMENTAL INVESTIGATION PROCESS ONCE CLEAN UP LEVELS AND REGULATIONS ARE FINALIZED WITH THE STATE
THIS CONTRACT IS REALLY FOCUSED AT SUPPORTING THAT FUTURE WORK
AND SO WE ARE REQUESTING A CONSULTING CONTRACT THAT WOULD SUPPORT US BOTH WITH THE ENVIRONMENTAL INVESTIGATION AND REMEDIATION PHASES, AS WELL AS PLANNING AND FOAM REPLACEMENT ACTIONS AS SOON AS THOSE REPLACEMENTS ARE ALLOWED
SO THE CONTRACT MAY ALSO PROVIDE SUPPORT WITH ALTERNATIVES ASSESSMENTS FOR LOOKING AT OPTIONS FOR CLEANUP AS WELL AS OPTIONS FOR PHONE REPLACEMENTS, SUPPORT WITH COMMUNICATIONS AND COORDINATION SUPPORT SPECIFIC TO PFAS IN THE PRESENCE OF PFAS, AS WELL AS CERTIFIED INDUSTRIAL HYGIENE SUPPORT SERVICES AS NEEDED BY OUR OTHER PORT DEPARTMENT
NEXT SLIDE, PLEASE
AND SO THE REASON WE'RE MAKING THIS REQUEST NOW AHEAD OF THE FORMAL FEDERAL AND STATE REGULATION PROCESS IS BECAUSE WE WANT TO BE READY TO ACT ONCE THOSE THINGS ARE FINALIZED
THE THREE KIND OF MOST NEAR TERM REGULATORY ACTIONS THAT WE'RE TRACKING ARE THE STATE OF WASHINGTON, WHO IS DEVELOPING RULES AND RESTRICTIONS ON PFAS AND PRODUCTS
THEY HAVE STARTED THAT PROCESS ALREADY AND ARE CONTINUING TO WORK ON ADDITIONAL THE FAA IS IN THE PROCESS RIGHT NOW OF WORKING ON THEIR APPROVALS AND REVISIONS OF THEIR REQUIREMENTS FOR THOSE PFAS CONTAINING FOAMS AND THE STATE IS ALSO IN THE PROCESS OF DEVELOPING ENVIRONMENTAL CLEANUP STANDARDS
NEXT SLIDE, PLEASE
AND SO TO JUST GO INTO A LITTLE BIT MORE DETAIL ABOUT THAT STATE CLEAN UP PROCESS, WE ARE ENTERING OR ANTICIPATING TO ENTER INTO A FORMAL CLEANUP PROCESS WITH THE STATE ONCE THOSE STANDARDS ARE DEVELOPED
THIS DIAGRAM SHOWS KIND OF WHAT THAT PROCESS WILL LOOK LIKE OVER THE NEXT COMING YEARS FOR US
IT'S A LONG PROCESS
THERE'S MULTIPLE STEPS IN IT
IT'S A VERY KIND OF DEFINED PROCESS WITH DEFINED PHASES AND DELIVERABLES
AND THIS DIAGRAM, I THINK, IS JUST BENEFICIAL TO SHOW ALL OF THE POINTS WHERE THERE IS GOING TO BE KIND OF ONGOING COORDINATION AND COMMUNICATION, BOTH WITH YOU AS WELL AS WITH THE PUBLIC ABOUT THIS PROCESS AS WE ENTER INTO A FORMAL PROCESS AND MOVE FORWARD
AND SO THE YELLOW BUBBLES ON THIS FIGURE SHOW ALL OF THE POINTS WHERE A FORMAL PUBLIC COMMENT PROCESS IS REQUIRED TO BE CONDUCTED BY THE DEPARTMENT OF ECOLOGY'S CLEANUP PROCESS
SO MULTIPLE OF THOSE KIND OF ALONG THE TIMELINE
AND THEN THE BLUE STARS HERE SHOW ALL OF THE DIFFERENT PLACES WHERE WE ANTICIPATE THERE WOULD BE A COMMISSION APPROVAL PROCESS, AND SO THOSE WOULD BE PRIOR TO ENTERING INTO LEGAL AGREEMENTS WITH THE STATE OR CONTRACTS FOR CONSTRUCTION OR MONITORING ACTIVITIES
AND SO WE WANTED TO SHOW KIND OF BOTH THE LENGTH OF THIS PROCESS AS WELL AS THE DEGREE OF COORDINATION THAT WILL OCCUR THROUGHOUT IT, BOTH WITH YOU AS WELL AS WITH THE PUBLIC
NEXT SLIDE, PLEASE
SO TO QUICKLY RECAP, WE'RE REQUESTING YOUR AUTHORIZATION TO ADVERTISE AND AWARD CONSULTING CONTRACT TO SUPPORT WITH OUR PFAS PLANNING, INVESTIGATION AND REMEDIATION SERVICES
WE'RE PREPARED TO ADVERTISE FOR THE REQUEST FOR PROPOSALS ON MARCH 10
SO JUST IN A COUPLE OF DAYS WITH THE GOAL OF FINALIZING A CONTRACT WITH A SUCCESSFUL FIRM OR TEAM BY JULY OF THIS YEAR
WITH THAT, I WILL PAUSE FOR QUESTIONS
THANK YOU, MEGAN, AND SARAH, FOR THE PRESENTATION
COMMISSIONERS, IF YOU PLEASE UNMUTE YOURSELF WHEN YOU'RE CALLED, GO AHEAD AND CALL THE ROLL
CLERK HART, BEGINNING WITH COMMISSIONER MOHAMED
THANK YOU
THANK YOU, MEGAN, FOR THE PRESENTATION
I DON'T HAVE ANY QUESTIONS, BUT I WILL SAY I APPRECIATE THE PROACTIVE LEADERSHIP HERE AND SUPPORT THE PFAS ENVIRONMENTAL INVESTIGATION AND CLEAN UP EFFORTS AND LOOKING FORWARD TO LEARNING MORE
THANK YOU, COMMISSIONER
COMMISSIONER HASEGAWA, THANK YOU FOR THE PRESENTATION
I'D LIKE TO THANK YOU STAFF FOR JOINING US HERE TODAY
WHEN WE RECEIVED THE BRIEFING, I DID HAVE QUESTIONS THAT I WAS HOPING TO BE ABLE TO POSE TO CHIEF STARKY
IN ADDITION TO ENVIRONMENTAL SAFETY BEING A PRIORITY, I DON'T THINK THERE'S ANY GREATER PRIORITY THAN PUBLIC HEALTH AND THE HEALTH OF OUR WORKFORCE
AND SO I KNOW THAT SOME OF YOUR MEMBERS WERE PARTICIPATING IN A STUDY, AND I WONDER JUST ABOUT THAT
WAS IT RANDOM? WAS IT VOLUNTARY, WHAT PERCENTAGE OF WORKERS ARE BEING TESTED, AND ANY INSIGHTS THAT YOU MIGHT HAVE AROUND THAT PROCESS? CERTAINLY
THANK YOU, COMMISSIONER HASEGAWA
HOPEFULLY I CAN ANSWER YOUR QUESTIONS
I'LL START WITH GIVING YOU A LITTLE BACKSTORY ABOUT OUR ORGANIZATION AS A FIRE DEPARTMENT IN PFAS
WE, UNFORTUNATELY, ARE THE FIRST FIRE DEPARTMENT TO HAVE A LINE OF DUTY DEATH ATTRIBUTED TO PFAS
THAT IS FIREFIGHTER GILBERT SMITH
I ALSO HAVE ANOTHER FIREFIGHTER WHO HAS BEEN IDENTIFIED AS A LINE OF DUTY DUE TO PFAS MEDICAL RELATED EXPOSURE, AND A THIRD FIREFIGHTER WHO HAS SINCE RETIRED IS ACTUALLY ALSO A PFAS EXPOSURE
KNOWING THAT CHIEF KRAUSE, WORKING WITH LOCAL 1257, POOR SEATTLE FIREFIGHTERS, IDENTIFIED DR BURGESS, WHO WAS ABLE TO SET UP HE HAD AYE
OWN INDEPENDENT STUDY WANTING TO IDENTIFY PFAS THROUGH NINE DIFFERENT TYPES OF BLOOD AND URINE SALIVA TESTING
AND OUR ORGANIZATION
INITIALLY, WE WORKED TO GET A GRANT FOR THAT, BUT DUE TO THE AMOUNT OF INDIVIDUALS WE'VE HAD WHO HAVE HAD EXPOSURES, WE WENT AHEAD AND MADE IT VOLUNTARY OVER THE NUMBER OF 20 MEMBERS INITIALLY
SO WE NOW VOLUNTARILY HAVE 90% OF THE DEPARTMENT HAS GONE THROUGH THE TESTING
THE MEMBERS THEMSELVES RECEIVED THAT INFORMATION BACK FROM DOCTOR BURGESS PERSONALLY
IT DOESN'T COME TO THE DEPARTMENT
HOWEVER, WHAT THE DEPARTMENT RECEIVES IS AN AGGREGATE OF OUR DEPARTMENTS COMPARED TO OTHERS
AND SO THIS IS CONTINUING
WE'RE GOING TO ACTUALLY HAVE DR BURGESS BACK OUT IN APRIL FOR CONTINUATION
HE'S ALWAYS AVAILABLE TO ANSWER ANY QUESTIONS OF OUR MEMBERS, ESPECIALLY SOME OF OUR RETIREES WHO WENT THROUGH THIS PROCESS
AND I GUESS THE MOST IMPORTANT THING IS WE'RE ALSO LOOKING AT WHEN WE BRING NEW FIREFIGHTERS ON, WE'RE FINDING OUT
AS I'M SURE YOU ALL ARE AWARE, PFAS IS IN EVERYTHING AND IT'S ALSO IN THE MAKEUP OF THE BUNKER GEAR THAT WE WEAR FOR FIREFIGHTING
AND SO WHAT WE ARE DOING IS WE ARE ACTUALLY TESTING OUR NEW HIRES WHEN THEY COME ON BOARD
SO WE GET AN IDEA WHAT THEY START AT, THE LEVEL THEY START AT AND TEST THEM AT THE FOLLOWING YEAR TO SEE WEARING GEAR, HOW MUCH EXPOSURE THEY REALLY HAVE WITH THEIR BUNKER CARE
DOES THAT ANSWER YOUR QUESTION? IT DOES, AND IT GENERATES NEW QUESTIONS
OKAY
AS ALL GOOD ANSWERS DO
WELL, I WOULD JUST LIKE TO ALSO EXPRESS MY SISTER'S CONDOLENCES TO THE IMPACTED FAMILIES FOR THE LOST OFFICERS
AND I THINK THAT ALSO JUST SPEAKS TO THE URGENCY OF THE ISSUE AT HAND
YOU SAID IT'S GOING TO BE A MULTIPLE YEAR STUDY
I WOULD JUST ALSO LIKE TO COMMENT THAT AS THE STUDY PROGRESSES, AS THERE IS NO INFORMATION AVAILABLE, THIS COMMISSIONER IS VERY INTERESTED TO KEEP A PRIZE AT THE DEVELOPMENT AND HOPES THAT YOU WILL EXPRESS YOUR NEEDS AS SOON AS YOU CAN AND ARE ABLE TO IDENTIFY THEM BECAUSE THIS IS JUST INCREDIBLY URGENT
I'M WONDERING IF THE OPPORTUNITY TO PARTICIPATE IN THE STUDY WAS ALSO EXTENDED NOT JUST TO THE FIREFIGHTERS THEMSELVES, BUT TO THOSE, FOR EXAMPLE, MECHANICS WHO WORK ON THE TRUCKS ON THE AFFECTED SOIL, BUT AREN'T NECESSARILY TESTING SOME OF THE SUBSTANCES THAT THEY'RE NOT DIRECTLY WORKING WITH PFAS, BUT THEY MIGHT HAVE EXPOSURE PROCESSES THAT WE'RE GOING THROUGH WITH
DR BURGESS IS SPECIFIC ONLY TO THE FIRE DEPARTMENT AND FIREFIGHTERS
THAT WAS AYE
UNIVERSITY OF ARIZONA TEAM'S MAIN THRUST, IF YOU WILL NOT TO SAY THAT OTHERS AREN'T EXPOSED
IT'S JUST THAT'S WHAT THE PROGRAM'S MAIN OUTLOOK WAS
AND WHEN IS THE ANTICIPATED CONCLUSION DATE OF THIS STUDY? 30 YEARS
IT'S A 30 YEAR STUDY
AND AS WE CONTINUE ON, WE'RE GETTING UPDATES AS WE LEARN MORE HISTORICALLY, PFAS, AS THEY MENTIONED, SOMETHING THAT IS NOT SOMETHING THAT DEGRADES
AND IT HAS THE OPPORTUNITY TO ENTER THE BODY IN A NUMBER OF WAYS EITHER IN TERMS OF THE EXPOSURE
WE'RE MUCH MORE COGNIZANT OF THAT NOW THAN WE WERE IN THE PAST
SO IT'S AN EVER EVOLVING CONCERN
THIS WILL BE MY LAST QUESTION
FORGIVE ME IF IT'S TOO FORWARD IN PUBLIC FORUM
I'M WONDERING HOW LONG AGO IT WAS THAT THOSE OFFICERS, THOSE AFFECTED OFFICERS PASSED AND HOW WE WERE ABLE TO ASCERTAIN THAT IT WAS CONNECTED TO PFAS
HOW DO I ANSWER THIS, TODD, CAN WE TAKE THAT OFFLINE, COMMISSIONER? ABSOLUTELY
I JUST LIKE TO REITERATE MY GRATITUDE FOR YOU FOR APPEARING AND BEING WILLING TO ANSWER THE QUESTIONS
AND I JUST LIKE TO EXPRESS THAT IT COMES FROM A PLACE OF GENUINE CONCERN FOR OUR WORKERS
AND PLEASE CONSIDER ME AS A PROACTIVE CONTRIBUTOR TO WHATEVER WE CAN DO TO UPLIFT, SUPPORT AND ENSURE THEIR SAFETY AND HEALTH
THANK YOU, SIR
THANK YOU SO MUCH
THANK YOU
THANK YOU, COMMISSIONER
MOVING TO COMMISSIONER FELLEMAN
OH, I DO SEE EXECUTIVE DIRECTOR METRUCK JUST IN THE LINE OF QUESTIONING
THANKS, CHIEF STARKEY, THANKS FOR THAT
AND WENDY
BUT ALSO, I JUST WANT TO MAKE SURE THAT OUR DIRECTOR OF HEALTH AND SAFETY, THERESA COMMONS, JUST WANTED TO LET YOU KNOW, COMMISSIONER, SHE'S INVOLVED IN THIS AS WELL, SO WE CAN MAKE SURE THAT WE'RE MONITORING AS AN ORGANIZATION
WE HEAR YOUR CONCERN AND WE SHARE YOUR CONCERN FOR THE HEALTH AND SAFETY OF OUR FIREFIGHTERS
THANK YOU
THANK YOU
THANK YOU
EXECUTIVE DIRECTOR, CAN I LIKE TO EXPRESS MY APPRECIATION FOR PURSUING THIS BEFORE A REGULATORY REQUIREMENT COMES DOWN
AND SO THAT'S PROACTIVE AND APPRECIATIVE
I'M APPRECIATIVE THEREOF
I WAS ALSO JUST WONDERING, IN TERMS OF TRACING THIS MATERIAL IN THE GROUND, IS IT JUST A MATTER OF DRILLING HOLES, OR CAN YOU DETECT THE SUBSTANCE THROUGH, LIKE, SCENT DOGS OR ANY OTHER MECHANISMS OTHER THAN THE EASY TO MISS THINGS IF YOU'RE JUST DOING A COURSE SAMPLING? THAT'S A GREAT QUESTION
AND UNFORTUNATELY, THE PRIMARY METHOD IS THROUGH SAMPLE COLLECTION AND LAB ANALYSIS
THE OTHER CHALLENGING COMPONENT OF PFAS IS THAT IT IS ODORLESS AND COLORLESS
AND SO IT'S ALSO NOT SOMETHING THAT YOU CAN SEE ONCE IT'S MADE ITS WAY INTO THE ENVIRONMENT
SO IT REALLY REQUIRES THAT COLLECTION OF SAMPLES AND LABORATORY ANALYSIS
BUT YOU DO ALREADY KNOW THE AREAS WHERE IT'S BEEN DEPLOYED AND STORED
SO IT'S NOT LIKE IT'S A RANDOM SEARCH
BUT I GUESS MY CONCERN WAS WHEN YOU MENTIONED THAT IT HAD COME INTO CONTACT WITH GROUNDWATER AND THAT YOU WERE FEELING THAT YOU DID NOT THINK IT SPREAD THAT FAR
BUT I WAS JUST WONDERING HOW THAT COULD BE DETERMINED ONCE IT'S IN WATER
AND WE ARE REALLY STILL IN OUR PRELIMINARY DATA COLLECTION PHASE
AND SO THAT DETERMINATION WILL BE SOMETHING THAT WE'RE GOING TO BE LOOKING INTO USING THIS CONTRACT, BUT THROUGH PRETTY STANDARD METHODS OF GROUNDWATER FLOW, WELLS AND ELEVATION
AYES, OF FLOW, THOSE KINDS OF THINGS LIKE WITH OTHER TYPES OF CONTAMINANTS THAT MAKE THEIR WAY TO GROUND WATER, SIMILAR PROCESS
THANK YOU
THANK YOU, COMMISSIONER
COMMISSIONER CHO, I DON'T HAVE ANY FURTHER QUESTIONS
I THINK WE'VE EXHAUSTED THE LINE OF QUESTIONING
AND I ALSO WANT TO EXPRESS MY CONDOLENCES TO THE LOST OFFICERS
BUT YEAH
THANK YOU, COMMISSIONER
COMMISSIONER CALKINS, NO FURTHER QUESTIONS FOR ME EITHER
AND THANK YOU, ALL OF THE PRESENTERS WHO WERE HERE AT THIS TIME
IS THERE A MOTION IN A SECOND TO APPROVE ITEM TEN? A COVID SECOND, HE'S BEEN MOVED
AND SECONDED, IS THERE ANY FURTHER DISCUSSION BY SHOW OF HAND
DO NOT SEE ANY
I SEE FRED TALKING, BUT I'M NOT SURE
NOTHING
OKAY
ALL RIGHT
CLERK HART, PLEASE CALL THE ROLL
COMMISSIONER SAY AYE OR NAY WHEN YOUR NAME'S FOR THE VOTE, BEGINNING WITH COMMISSIONER MOHAMED AYE
THANK YOU, COMMISSIONER HASEGAWA
AYE
THANK YOU, COMMISSIONER FELLEMAN
AYE THANK YOU, COMMISSIONER CHO
AYE
THANK YOU, COMMISSIONER CALKINS
AYE
THANK YOU
THERE ARE FIVE AYES AND ZERO NAYS FOR THIS ITEM
AND WITH THAT, THE MOTION PASSES
WE'RE NOW MOVING TO ITEM ELEVEN, PRESENTATIONS AND STAFF REPORTS
CLERK HART, PLEASE READ THE NEXT ITEM INTO THE RECORD
AND THEN EXECUTIVE DIRECTOR METRUCK
YOU CAN INTRODUCE IT
THANK YOU
THIS IS AGENDA ITEM ELEVEN A
THE 2021 FINANCIAL PERFORMANCE BRIEFING COMMISSIONER WAS VERY HAPPY TO PRESENT TODAY'S BRIEFING ON THE FINANCIAL PERFORMANCE OVER AVIATION, MARITIME, ECONOMIC DEVELOPMENT AND CENTRAL SERVICES DIVISIONS FOR 2021
I SAY VERY HAPPY BECAUSE THE REPORT DEMONSTRATES THE OUTSTANDING FINANCIAL MANAGEMENT EXERCISE BY OUR FINANCE TEAMS AND PORT STAFF OVER THE PAST TWO YEARS OF THE PANDEMIC UNDER UNPRECEDENTED CHALLENGES AND UNCERTAINTY
DESPITE THE PANDEMIC, WE EMERGED FROM 2021 IN A STRONG FINANCIAL POSITION
THE PORT IS MAINTAINING A HIGH LEVEL OF CAPITAL INVESTMENT WITH THE RESOURCES NECESSARY TO RESTORE AND EXPAND STAFF, INCREASE EMPLOYEE PAY, AND INCREASE COMMUNITY PROGRAMS WE SAW A REBOUND IN AIR TRAVEL, A PARTIAL RESTORATION OF ALASKA CRUISING AND HIGHER GRAIN AND MORTGAGE REVENUES
FEDERAL AID OBVIOUSLY PLAYED A KEY ROLE IN MAINTAINING OUR FINANCIAL HEALTH
I WANT TO SAY THANKS TO THE FINANCIAL PROFESSIONALS THROUGHOUT THE PORT WHO CONTRIBUTED TO THE SUCCESS OF A SPECIAL NOTE
I'D LIKE TO NOTE THAT THE PORT RECEIVED THE CERTIFICATION OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING FROM THE GOVERNMENT FINANCE OFFICERS AVIATION FOR 2021 ANNUAL COMPREHENSIVE FINANCIAL REPORT
AS STATED IN THE AWARD NOTIFICATION, THIS CERTIFICATION IS THE HIGHEST FORM OF RECOGNITION IN THE AREA OF GOVERNMENT ACCOUNTING AND FINANCIAL REPORTING, AND THIS ATTAINMENT REPRESENTS A SIGNIFICANT ACCOMPLISHMENT BY GOVERNMENT IN ITS MANAGEMENT
THIS IS NOW THE JUNETEENTH CONSECUTIVE YEAR THE PORT FORT HAS EARNED THIS RECOGNITION
AND I WANT TO THANK AND CONGRATULATE RUDY KALUSA AND AYE
ACCOUNTING AND FINANCIAL REPORTING TEAM
I'M RECEIVING THIS RECOGNITION
SO PRESENTING TODAY IS DAN THOMAS, CHIEF FINANCIAL OFFICER
AND ALSO ACCOMPANYING AYE
IS KELLY ZUPON, MICHAEL TONG AND BORG AND ANDERSON
AND WE HAVE OUR MANAGING DIRECTORS AVAILABLE TO ANSWER ANY QUESTIONS AS WELL
SO WITH THAT, I'M GOING TO TURN OVER TO DAN
THANK YOU, STEVE
GOOD AFTERNOON, COMMISSIONERS, IF WE COULD BRING THE PRESENTATION UP, PLEASE, IN THE NEXT SLIDE
SO I'LL JUST PROVIDE A FEW HIGHLIGHTS AND THEN TURN IT OVER TO THE DIVISION DIRECTORS TO GO THROUGH THE DIFFERENT BUSINESS RESULTS
AS STEVE MENTIONED, DO WE REALLY MANAGE TIGHTLY THROUGH THE PAST TWO YEARS? WE DID A SIGNIFICANT COST CUTTING LAST YEAR
WE HAD A HIRING FREEZE AND CUT SOME DISCRETIONARY SPENDING, AND IT REALLY DID HELP US BECOME WELL POSITIONED TO MAKE IT THROUGH 2021
DESPITE THE ONGOING DISRUPTIONS CAUSED BY THE PANDEMIC
STEVE MENTIONED AIRPORT PASSENGER LEVELS WERE IN LINE WITH BUDGET ABOUT 30% LOWER THAN 2019
WE ARE STAYING THIS YEAR AND EXPECTING A CONTINUED UPWARD TREND IN PASSION TO YOUR ACTIVITY AND ALSO THE FEDERAL FUNDING
THE FEDERAL RELIEF FUNDS WERE REALLY IMPORTANT IN HELPING TO IMPROVE THE FINANCIAL OUTLOOK FOR THE AVIATION DIVISION PROVIDED RELIEF FOR BOTH OUR AIRLINE TENANTS AND CUSTOMERS, AS WELL AS SOME OF OUR ADR TENANTS AND OTHER CONCESSION THERE
SO THEY WERE REALLY IMPORTANT IN HELPING US MANAGE THROUGH ALSO CRUISE BUSINESS WAS A SHORTENED SEASON, BUT WE DID HOST 82 SHIP CALLS AND APPROXIMATELY 229,000 REVENUE PASSENGERS
AND AGAIN, WE'RE EXPECTING A MORE ROBUST SEASON THIS YEAR
SO WE'RE SEEING SOLID TRENDS TOWARDS RECOVERY
OUR OPERATING EXPENSES WERE SIGNIFICANTLY BELOW BUDGET DUE TO A $58 MILLION CREDIT, WHICH IS NONCASH RELATED TO THE WAY WE ACCOUNT FOR THE PORT PUBLIC PENSION PLANS THROUGH THE DEPARTMENT OF REVENUE SERVICES
I WANT TO JUST DO A QUICK ASIDE TO HELP PROVIDE A LITTLE BIT OF BACKGROUND ON THAT
IT'S NOT NECESSARILY INTUITIVE, BUT ESSENTIALLY BACK IN ABOUT 2014, WE IMPLEMENTED NEW PENSION ACCOUNTING RULES REGARDING HOW WE ACCOUNT FOR PENSIONS
SO PRIOR TO THOSE RULES, REALLY WHAT WE BOOKED AS EXPENSE ON PENSIONS WERE SIMPLY THE CASH EXPENDITURES THAT WE MADE THAT ARE DERIVED FROM THE CONTRIBUTION RATES TO THE VARIOUS STATE PENSION PLANS
WE HAVE ABOUT FIVE PENSION PLANS, STATE PENSION PLANS, AND THE STATE TERMINAL THE CONTRIBUTION RATES, AND THAT'S THE CASH WE ACTUALLY PAY
AND SO PREVIOUS TO THE NEW RULES, WE SIMPLY BOOKED THOSE CASH EXPENDITURES AS OUR PENSION EXPENSE
HOWEVER, WITH THE NEW RULES, THEY REQUIRED US TO FIRST BOOK A NET PENSION LIABILITY ON OUR BALANCE SHEET
THAT WAS THE FIRST TIME WE ACTUALLY HAD TO PUT A LIABILITY ON OUR BALANCE SHEET FOR FUTURE PENSION OBLIGATIONS, AND THAT THE PENSION EXPENSE IS NOW CALCULATED BASED ON ANNUAL CHANGES TO THAT NET PENSION LIABILITY
AND WE GET THOSE RESULTS FROM THE OFFICE OF THE STATE ACTUARY, WHO VALUES THE VARIOUS PENSION PLANS WHEN THEY'RE LOOKING AT BOTH THE PLAN LIABILITIES OVER THE LONG TERM AS WELL AS THE MARKET VALUE OF ASSETS
SO THEY'RE KIND OF LOOKING AT THE FUNDED STATUS OF THOSE VARIOUS PLANS, AND THEN THE STATE ANNUALLY CALCULATES THE ANNUAL PENSION EXPENSE FOR THOSE VARIOUS PLANS, AND THEN THEY APPORTIONED IT OUT TO THE INDIVIDUAL GOVERNMENTS THAT PARTICIPATE IN THOSE PLANS
SO WHEN WE PREPARE OUR BUDGET IN THE FALL, WE DON'T HAVE THAT INFORMATION
SO THE ONLY INFORMATION WE REALLY HAVE TO USE FOR OUR BUDGET ARE THE ACTUAL CONTRIBUTIONS, THE CASH CONTRIBUTIONS WE'RE MAKING
BUT THEN WHEN WE GET TO THE FOLLOWING YEAR AND WE GET THE ACTUAL PENSION EXPENSE FROM THE STATE, WE HAVE TO DO A YEAR END TRUE UP WHERE WE COMPARE WHAT WE BUDGETED, WHICH WERE OUR CASH CONTRIBUTIONS TO THE PENSION EXPENSE THAT WAS GIVEN TO US BY THE STATE
SO THERE'S A DISCONNECT BETWEEN THOSE TWO AND WE HAVE TO THROW IT UP
AND IN THE PAST FEW YEARS SINCE WE'VE IMPLEMENTED THESE NEW ACCOUNTING RULES, WE'VE GENERALLY RECORDED A CREDIT EVERY YEAR AT THE END OF THE YEAR, WHICH MEANS A REDUCTION IN EXPENSE RANGING FROM SOMEWHERE AROUND TEN TO $20 MILLION
BUT THIS YEAR, LARGELY DUE TO THE SIGNIFICANT PERFORMANCE OF THE STOCK MARKET, WE ACTUALLY RECORDED A $58 MILLION CREDIT, WHICH LOWERS OUR PENSION EXPENSE IN 2021
AND THEN WE ALSO RECORDED ABOUT A $5.7 MILLION REDUCTION IN OPERATING REVENUE
AND THAT HAS TO DO WITH THE LAW ENFORCEMENT OFFICERS AND FIREFIGHTERS LEFT TO PLAN
THAT PLAN IS SUBSIDIZED BY THE STATE, SO THAT ACTUALLY AFFECTS OUR REVENUES
SO GIVEN THE SIGNIFICANT AMOUNT OF THE PENSION CREDIT AND THE REVENUE REDUCTION, WE REALLY WANTED TO ISOLATE THE EFFECTS OF THOSE FROM OUR TWO PERFORMANCE
SO IN MANY OF THE CHARTS AND TABLES WILL BE PROVIDING YOU WITH IN TODAY'S PRESENTATION, WE'VE EITHER NOT INCLUDED THE PENSION CREDIT OR WE'VE PROVIDED VISIBILITY AND TRANSPARENCY BECAUSE WE REALLY WANTED TO SHOW THE TRUE FINANCIAL PERFORMANCE AND NOT THE IMPACTS OF THESE NON CASH ADJUSTMENTS
SO RECOGNIZING IT'S COMPLICATED, THIS IS THE ACCOUNTANT'S FULL EMPLOYMENT ACT WHEN WE HAVE TO DO THESE THINGS
BUT AGAIN, CREDIT GOES TO OUR ACCOUNTING TEAM, WHO DOES A GREAT JOB IN TERMS OF DOING ALL THE COMPLEX CALCULATIONS INVOLVED IN BOOKING THESE PENSION EXPENSES
NEXT SLIDE, PLEASE
I THINK WE'RE GOING TO TURN IT NOW OVER TO BORGAN ANDERSON TO GO THROUGH THE AVIATION RESULTS
THANK YOU, DAN
LET'S MOVE ON TO THE NEXT SLIDE
NEXT SLIDE, PLEASE
I'D LIKE TO START BY LOOKING AT OUR PASSENGER VOLUMES AND IN THIS CASE, COMPARING EACH MONTH TO 2000 AND JUNETEENTH
AND AS DAN INDICATED, WE HAVE SEEN A SIGNIFICANT RECOVERY OF OUR 2019 LEVELS, BUT IT WAS NOT LINEAR
WE WERE MAKING PRETTY STEADY PROGRESS UNTIL THE END OF THE SUMMER WHEN THE DELTA VARIANT OF THE CORONAVIRUS MADE ITS APPEARANCE, AND THAT STALLED THINGS A LITTLE BIT
WE STARTED TO PICK UP AGAIN, AND WE'RE LOOKING AT A GOOD RECOVERY TO YOUR END WHEN THE ARMOTRON VARIANT MADE ITS APPEARANCE, AND THAT SLOWED DOWN OUR TRAFFIC TOWARDS THE END OF DECEMBER
BUT OVERALL, WE WERE VERY CLOSE TO THE FIGURE THAT WE BUDGETED
AND I JUST AT THIS TIME LIKE TO GIVE CREDIT TO MICHAEL DRAWINGER AND THE BUSINESS INTELLIGENCE TEAM FOR PROVIDING US WITH JUST EXCEPTIONALLY ACCURATE FORECASTS DURING THE YEAR THAT ALLOWED US TO MAKE GOOD DECISIONS AS WE WENT THROUGH THIS YEAR OF VERY SIGNIFICANT CHANGE
NEXT SLIDE, PLEASE
ON THIS SLIDE, I'M ACTUALLY GOING TO COMMUNICATE MOST OF THE KEY INFORMATION THAT I PLAN TO TALK ABOUT
SO I'LL SPEND A LITTLE MORE TIME ON THIS SLIDE, AND THEN IN SUBSEQUENT SLIDES, I'LL ACTUALLY MOVE FAIRLY QUICKLY
I'D LIKE TO START BY JUST ECHOING WHAT DAN SAID
2021 WAS A VERY STRONG YEAR, AND WE ACHIEVED ALL OF OUR MAJOR FINANCIAL OBJECTIVES
IN ADDITION TO THE PENSION CREDIT, THE OTHER KEY THING TO UNDERSTANDING OUR RESULTS WAS THE ADDITIONAL FEDERAL RELIEF AID
WHEN WE STARTED THE YEAR, WE WERE AWARE OF THE FIRST FEDERAL RELIEF PACKAGE, AND THAT'S WHAT WAS BUILT INTO OUR BUDGET
BUT IN DECEMBER, THE SECOND RELIEF PACKAGE CAME IN, AND THEN IN MARCH, WE HAD THE THIRD FEDERAL RELIEF PACKAGE
AND THIS GAVE US A LOT OF FLEXIBILITY TO ACHIEVE OUR GOALS AND BENEFIT OUR CUSTOMERS
SO STARTING AT THE TOP, LOOKING AT AERONAUTICAL REVENUES, WHAT LOOKS LIKE A $69 MILLION NEGATIVE VARIANCE IS WORTH EXPLAINING
AND MOST OF OUR AERONAUTICAL REVENUES ARE BASED ON COST RECOVERY
BUT BECAUSE WE HAD MORE FEDERAL GRANTS, WE USE THOSE GRANTS IN PART TO REDUCE AIRLINE COSTS
AND THAT PERMITTED US TO DO A MID YEAR RATE REDUCTION FOR THE AIRLINES
AND THAT WAS VERY WELL RECEIVED
ON THE NON AERONAUTICAL SIDE, AS I'LL EXPLAIN IN THE SUBSEQUENT SLIDE, WE ACTUALLY DID BETTER THAN PUGET
BUT BECAUSE OF THE FEDERAL RELIEF PASS THROUGH GRANT ELEMENT THAT REDUCED THE REVENUE THAT WE'D OTHERWISE COLLECT FROM OUR CONCESSION, ERRORS ARE RECOGNIZED
REVENUE IS ACTUALLY LOWER
ON THE OPERATING COST SIDE, WE WERE TRACKING CLOSELY TO BUDGET ALL YEAR LONG AND WE'RE EXPECTING TO BE SLIGHTLY UNDER BUDGET
AND THEN THE SNOW EVENT AYE
LATE IN DECEMBER AND THAT ACTUALLY PUSHED US OVER
SO WE WERE 1.7 MILLION OVER BUDGET, EXCLUDING THE PENSION CREDIT
WITH THE PENSION CREDIT, YOU CAN SEE THE $47 MILLION
MOST OF THE OVERALL CREDIT WAS ACCRUED TO THE AIRPORT BECAUSE MOST OF THE EMPLOYEES ARE AT THE AIRPORT
SO OBVIOUSLY WE ENDED UP WELL UNDER BUDGET
FROM AN OPERATING EXPENSE STANDPOINT, OUR NOI IS ACTUALLY NEGATIVE, AND THAT'S BECAUSE OF THE USE OF THE GRANTS
AND SO IN THIS MODIFIED INCOME STATEMENT, WE'VE INCLUDED THE FEDERAL RELIEF GRANTS, EVEN THOUGH THOSE ARE CATEGORIZED AS NON OPERATING REVENUES, SO THAT WE CAN GET TO THAT NOI AFTER FEDERAL RELIEF
AND I THINK THIS IS A MORE MEANINGFUL LINE ITEM AND IT SHOWS THAT WE'RE $33 MILLION FAVORABLE
LOOKING AT OUR KEY MEASURES, OUR NONAERONAUTICAL NET OPERATING INCOME, THIS IS OUR KEY SOURCE OF CASH
SO THE FACT THAT THAT'S POSITIVE IS A VERY GOOD THING
OUR COST PER EMPLOYMENT, WHICH IS A MEASURE OF COST TO THE AIRLINES, WAS WELL UNDER PUGET, AND THAT'S BECAUSE OF THE GRANTS AND THE PENSION CREDIT, DEBT SERVICE COVERAGE WAS WELL ABOVE, AND THAT'S BECAUSE WE HAD MORE MONEY TO PAY DEBT SERVICE
SO WE WERE SIGNIFICANTLY ABOVE OUR TARGET THERE AND OUR CASH BALANCE, THIS WAS REALLY IMPORTANT
THE ADF THAT'S THE AIRPORT DEVELOPMENT FUND WE HAD TARGETED TO GROW OUR CASH BALANCE IN 2021 UP TO TWELVE MONTHS OF OUR OPERATING AND MAINTENANCE COSTS
AND SO WE WERE ABLE TO DO THAT, AND THAT WAS AGAIN GREATLY AIDED BY THE FEDERAL RELIEF GRANTS
OUR CAPITAL SPENDING WAS ALMOST 80% OF OUR BUDGET, SO A PRETTY GOOD YEAR THERE
I'LL EXPLAIN SOME MORE DETAILS ON THAT LATER
NEXT SLIDE, PLEASE
COULD WE MOVE TO THE NEXT THERE WE GO
THANK YOU
SO I'M ACTUALLY GOING TO SKIP THIS SLIDE
I THINK I'VE ALREADY AYE
THE KEY POINTS HERE
SO LET'S GO INTO THE NEXT SLIDE
THIS IS THE AERONAUTICAL REVENUES
IT JUST SHOWS THE RATE BASE AND WHAT IT HIGHLIGHTS IS WHEN WE PAY COSTS WITH GRANTS, THOSE COSTS ARE EXCLUDED FROM THE AIRLINE RATE BASE
SO YOU SEE THE DEBT SERVICE BAR ON THE RIGHT IS MUCH SMALLER
AND THAT'S BECAUSE INSTEAD OF CHARGING THE AIRLINES FOR THAT DEBT SERVICE, WE USE THE FEDERAL RELIEF GRANTS
AND THEN OF COURSE OUR OPERATING AND MAINTENANCE COSTS WERE LOWER BECAUSE OF THE PENSION CREDIT
NEXT SLIDE PLEASE
THIS LOOKS AT A DEEPER DIVE INTO OUR AERONAUTICAL REVENUES BROKEN OUT BY THE MAJOR COST CENTERS
AND I THINK THE MESSAGE HERE IS REALLY THAT WE WERE ABLE TO DISTRIBUTE THE GRANT USE ACROSS THE COST CENTER, SO EACH COST CENTER BENEFITED FROM IT
SO THE ACTUAL REVENUES ARE LOWER, MEANING THE ACTUAL COSTS ARE LOWER, ALL EXCEPT THE AIRFIELD COMMERCIAL AREA
THAT'S A LITTLE DIFFERENT BECAUSE THAT IS A COMPENSATORY COST CENTER, SO IT'S NOT COST RECOVERY
NEXT SLIDE PLEASE
OKAY, HERE'S THE NON AERONAUTICAL VIEW OF OUR REVENUES AND THE FIGURE IN THE MIDDLE IS WHAT I CALL OUR RESTATED NON AERONAUTICAL REVENUES AND THIS FIGURE WOULD BE SLIGHTLY HIGHER THAN OUR BUDGET
THE FIGURE ON THE RIGHT IS WHAT WE ACTUALLY REPORT AND THAT'S ADJUSTED FOR THE CHRIS GRANT INCLUDED A PASS THROUGH TO THE CONCESSION HERE
SO WE COLLECT THAT MONEY FROM THE FEDERAL GOVERNMENT AS NON OPERATING REVENUE AND WE THEREFORE REDUCE THE AMOUNT WE COLLECT FROM OUR TENANTS
AND THEN AS DAN EXPLAINED, ONE ELEMENT OF THE PENSION CREDIT WAS A CONTRACT REVENUE DUE TO THE FACT THAT THERE WAS A REVERSAL OF A SUBSIDY
SO IT'S A RATHER COUNTERINTUITIVE THING, BUT THAT DROPPED OUR REVENUES A LITTLE BIT
BUT OTHER THAN THOSE TWO ADJUSTMENTS, WE WERE ABOVE BUDGET
NEXT SLIDE PLEASE
OKAY, LOOKING AT OUR MAJOR BUSINESS UNITS WITHIN THE NON AERONAUTICAL SIDE, PUBLIC PARKING CONTINUES TO BE OUR BEST PERFORMER WITH REVENUE SIGNIFICANTLY ABOVE BUDGET
OUR CLOSE IN PARKING WAS IN GREAT DEMAND THROUGHOUT THE YEAR
RENTAL CARS WERE WELL ABOVE BUDGET, BUT FOR A SLIGHTLY DIFFERENT REASON
THERE WAS A SHORTAGE OF CARS AND THAT DROVE UP PRICES SIGNIFICANTLY AND OUR REVENUES BASED ON A PERCENTAGE CONCESSION FEE OF THEIR REVENUES
SO WHEN THEIR REVENUES WENT UP, OUR TAKE WENT UP AS WELL
THE OTHER AREAS, AS WE SAW EARLIER IN THE YEAR, WE'RE UNDERPERFORMING COMPARED TO BUDGET
GROUND TRANSPORTATION WAS CLOSE, BUT THAT WAS LARGELY DUE TO THE FACT THAT WE STARTED COLLECTING A DROP OFF FEE FOR THE TRANSPORTATION NETWORK COMPANIES
IF NOT FOR THAT, WE WOULD HAVE BEEN WELL BELOW BUDGET AND DINING AND RETAIL HAD CHALLENGES THROUGHOUT THE YEAR AND IN PARTICULAR DUTY FREE WAS WAY DOWN DUE TO THE REDUCTIONS IN INTERNATIONAL PASSENGERS
NEXT SLIDE PLEASE
OKAY, REALLY JUST TWO POINTS HERE AND THAT'S REALLY THE USE OF THE FEDERAL RELIEF GRANTS TO REDUCE COSTS THAT WOULD OTHERWISE GO INTO THE DEBT SERVICE COVERAGE CALCULATION
SO UP ABOVE THE FIRST HIGHLIGHTED SELL, WE'RE SHOWING THE AMOUNT THAT WAS USED TO PAY OPERATING COSTS AND DOWN BELOW WE SHOWED A BIG INCREASE IN THE AMOUNT OF GRANTS THAT WERE USED TO PAY FOR DEBT SERVICE
AND THAT'S REALLY WHAT DRIVES UP THIS CALCULATION OF DEBT SERVICE COVERAGE
THIS IS THE CALCULATION WE USE FOR THE AIRLINE LEASE AGREEMENT
IT'S SLIGHTLY DIFFERENT THAN THE WAY IT'S CALCULATED FOR OUR BOND DOCUMENTS, BUT THIS ONE IS THE IMPORTANT MEASURE FOR THE AIRPORT
NEXT SLIDE, PLEASE
ALL RIGHT
CAPITAL SPENDING
AS I SAID, WE'RE ABOUT 79% OF BUDGET
AND THERE'S SOME GOOD NEWS AND SOME NOT SO GOOD NEWS MIXED IN HERE
FIRST OF ALL, AT THE TOP, WE LOOK AT THE NORTH SATELLITE SPENDING
AND THE FACT THAT WE'RE UNDER BUDGET HERE IS ACTUALLY GOOD NEWS FOR THOSE OF YOU WHO ARE HERE
A YEAR AGO, YOU WOULD HAVE HEARD US REPORT HOW WE ACTUALLY ACCELERATED SOME SPENDING IN 2020 TOWARDS THE END OF THE YEAR SO THAT WE DIDN'T HAVE TO SPEND IT IN 2021
AND THAT WAS TO TAKE ADVANTAGE OF LOWER TRAFFIC, LOWER PASSENGERS TO GET MORE WORK DONE IN 2020
IN ADDITION, THERE'S ALSO SOME ABOUT $12 MILLION OF PROJECT SAVINGS HERE
SO THIS IS A GOOD NEWS STORY
THE INTERNATIONAL ARRIVALS FACILITY
THE NEXT ITEM IS THE NOT SO GOOD STORY
WHILE WE'RE SIGNIFICANTLY UNDER BUDGET, THIS IS NOT DUE TO PROJECT SAVINGS, BUT THIS IS DUE TO PROJECT DELAYS
THE CHECK BAGGAGE OPTIMIZATION, ANOTHER MAJOR PROJECT, IN THIS CASE SPENDING MORE THAN BUDGET, BECAUSE AGAIN, WE WERE ABLE TO ACCELERATE SOME SCOPE OF WORK INTO THIS YEAR, WHICH IS A GOOD NEWS STORY
AIRFIELD PAVEMENT, SLIGHTLY UNDER BUDGET, AND MOST OF THIS IS ATTRIBUTABLE TO SAVINGS AS WELL
SO OVERALL, WE'RE UNDERSPENDING OUR BUDGET, BUT THERE ARE SOME GOOD REASONS FOR THAT
NEXT SLIDE, PLEASE
OUR CASH BALANCE
AGAIN, THIS WAS A KEY MEASURE AND A REALLY IMPORTANT TARGET FOR US THIS YEAR
AND THIS SHOWS THE MONTH BY MONTH CASH BALANCE AND HOW MY TEAM WAS REALLY TRYING TO MANAGE THIS AND TO AYE
OUR TARGET
AND I'LL JUST SAY A LOT OF MOVING PARTS, VERY FEW OF WHICH ARE REFLECTED ON THIS GRAPH
BUT I HOPE IT GIVES YOU AN IDEA OF HOW WE WERE WITHHOLDING THE DRAWDOWNS ON THOSE FEDERAL RELIEF GRANTS UNTIL WE REALLY UNDERSTOOD HOW THE YEAR WAS PLANNING OUT AND THEN WE COULD MAKE SURE WE WERE USING IN THE MOST OPTIMAL MANNER
AND WE DID AYE
OUR TARGET, JUST BARELY
NEXT SLIDE, PLEASE
AND THIS IS A SUMMARY OF THE THREE FEDERAL RELIEF PROGRAMS NOT GOING TO GO THROUGH IT IN ANY DETAIL, BUT IT'S REALLY A REFERENCE HERE
I THINK THE IDEA HERE IS THAT WE SPLIT THE USE OF THE MONEY BY THE PORTION THAT BENEFITTED THE AIRLINES AND THE PORTION THAT BENEFITED THE NONAIRLINE SIDE OR REALLY DROPS TO OUR BOTTOM LINE
MOST OF THE MONEY WAS USED TO PAY DEBT SERVICE IN 2021
AND PROBABLY THE KEY INFORMATION HERE IS THAT TOWARDS THE END OF THE YEAR, ONCE WE GOT AN INDICATION OF THE PENSION CREDIT, WE MADE A DECISION TO PUSH OUT GRANT MONEY THAT WE OTHERWISE WOULD HAVE USED IN 2021, AND THAT'S NOW AVAILABLE
SO WE HAVE 43.7 MILLION THAT IS NOT BUILT INTO THE 2022 PUGET, AND WE'LL BE MAKING A DECISION LATER THIS YEAR ON HOW BEST TO DEPLOY THAT
I WILL SAY THAT IN ALL LIKELIHOOD WE WILL NEED TO USE THAT TO BUILD OUR CASH BALANCE TARGET FOR 2022
BECAUSE WHILE THE PENSION CREDIT WAS A WONDERFUL THING, AS DAN INDICATED, IT WAS A NON CASH BENEFIT
BUT BECAUSE IT LOWERED COSTS THAT WE WOULD RECOVER FROM THE AIRLINES, WE ACTUALLY COLLECTED LESS CASH THAN WE OTHERWISE WOULD HAVE
SO WE'RE LIKELY GOING TO NEED TO USE MOST OF THAT TO RESTORE OUR CASH BALANCE IN OUR TARGET FOR 2022
NEXT SLIDE, PLEASE
AND WITH THAT, I'LL TURN IT OVER TO KELLY
UNLESS THERE ARE ANY QUESTIONS I CAN ANSWER, I THINK WE'LL KEEP MAKING NOTE OF OUR QUESTIONS, AND THEN WE'LL CIRCLE BACK AT THE END OF THE PRESENTATION FOR QUESTIONS
ALL RIGHT
THANKS, MORGAN
GOOD AFTERNOON
COMMISSIONERS AND EXECUTIVE DIRECTOR METRUCK
I'LL NOW WALK YOU THROUGH THE SEAPORT OPERATING DIVISIONS AND ENTITIES
MANAGING DIRECTOR STEPHANIE JONES STEPHENS AND OF THE MARITIME DIVISION AND DAVE MCFADDEN OF THE ECONOMIC DEVELOPMENT DIVISION ARE WITH US AND MAY INTERJECT ALONG THE WAY AS WELL
NEXT SLIDE, PLEASE
THIS SLIDE IS A ROLL UP OF THE ENTIRE SEAPORT
THE KEY TAKEAWAY HIGHLIGHTED IN GREEN IS NUI OR NET OPERATING INCOME
EXCLUDING THE STORMWATER UTILITY, IT CAME IN AT ABOUT $25 MILLION FAVORABLE TO PUGET
THIS FIGURE INCLUDES A NON CASH PENSION CREDIT OF $10 MILLION, SO EXCLUDING THAT, WE ARE ABOUT $15 MILLION BETTER THAN EXPECTED
OF THAT, 13 MILLION OR SO COMES FROM OUR INTEREST IN THE NORTHWEST SEAPORT LINES JOINT VENTURE AND THE REMAINING 2 MILLION FROM THE COMBINATION OF ECONOMIC DEVELOPMENT AND MARITIME GROUPS WITH POSITIVE CRUISE AND GRAIN VOLUMES OFFSET BY THE CONFERENCE AND EVENT CENTERS TAKING A LITTLE LONGER TO RECOVER FROM THE PANDEMIC
YEAR OVER YEAR INCOME IS UP OVER $34 MILLION, OR 27 MILLION OUT OF THE PENSION CREDIT
THIS GROWTH IS A RESULT OF A V SHAPED RECOVERY IN CARGO RETURN OF CRUISE AND PORT WIDE COST MANAGEMENT INITIATIVES UNDERTAKEN TO MAINTAIN FINANCIAL STRENGTH THROUGH THE PANDEMIC
WE WILL NOW QUICKLY BREAK DOWN EACH OF THE DIVISIONS OR ENTITIES INDIVIDUALLY, STARTING WITH MARITIME
AND WE DO HAVE ADDITIONAL SLIDES IN THE APPENDIX IF YOU WANT TO SEE FURTHER DETAIL
NEXT SLIDE, PLEASE
NEXT SLIDE
OKAY
NOW, DESPITE ALL THE COVID HEADWINDS, MARITIME FINISHED 2021 WITH ABOUT A MILLION DOLLARS FAVORABLE NET OPERATING INCOME, EXCLUDING THE PENSION CREDIT, OUR FISHING, COMMERCIAL AND RECREATIONAL MARINAS EXCEEDED REVENUE TARGETS
CREWS HAD A SUCCESSFUL LATE SEASON OPENING WITH 82 CALLS AND 229,000 PASSENGERS
AS DAN MENTIONED EARLIER, GRAIN VOLUMES WERE MUCH HIGHER THAN PLANNED AS WELL
LISTED TO THIS SIDE ARE A FEW OF THE NUMEROUS ACCOMPLISHMENTS THE TEAM HAS COMPLETED
WE'D LIKE TO NOTE THE COMPLETION OF T FIVE PHASE ONE, SECURING A FIVE YEAR VESSEL AGREEMENT WITH THE TRIBES THAT ALLOWS A PASSAGEWAY FOR BOTH CARGO AND CRUISE SHIPS AND THE CREATION OF STORMWATER UTILITY IN 2016, AND WITH THE CREATION OF THE STORMWATER UTILITY IN 2016, OUR TEAM HAS BEEN ABLE TO SCOPE OUT MOST OF THE ASSETS AND CREATE ITS FIRST STRATEGIC PLAN
NEXT SLIDE PLEASE
THIS SLIDE SHOWS THE FINANCIAL RESULTS ABSENT THE IMPACT OF PENSION ADJUSTMENTS
THE POSITIVE NET OPERATING INCOME IN 2021 IS OVER $11 MILLION IN 2020
THIS IS DRIVEN BY RETURN
THIS IS DRIVEN BY THE RETURN OF CRUISE ON THE REVENUE SIDE AND ON THE EXPENSE SIDE
IN 2020, WE MOVED ABOUT TWO AND A HALF MILLION DOLLARS IN COSTS RELATED TO THE POTENTIAL NEW CRUISE TERMINAL 46 FROM CAPITAL TO EXPENSE
THE HIRING, FROST AND PANDEMIC RELATED COST REDUCTION MEASURES BROUGHT FURTHER SAVINGS WE SPENT SIMILAR TO THE AIRPORT, WE SPENT JUST UNDER THREE QUARTERS OF OUR CAPITAL BUDGET, WHICH IS ON THE HIGH SIDE OF OUR HISTORIC PERFORMANCE DESPITE SOME COVID HEADWINDS AND RESOURCE CHALLENGES
NEXT SLIDE PLEASE
HERE IS THE PROFIT AND LOSS STATEMENT FOR OUR STORMWATER UTILITY
THE UNIT WAS FORMED IN 2016 WHEN THE PORT TOOK OVER THE ASSETS FROM THE CITY OF SEATTLE
IT IS A COST RECOVERY UNIT SIMILAR TO THE AIRPORT, WHERE THE RATES CHARGED ARE BASED ON THE LONG TERM FINANCIAL NEEDS OF THE UTILITY
THEY ARE REVIEWED ANNUALLY BY A STEERING COMMITTEE AND PRESENTED IN OCTOBER EACH YEAR TO THE COMMISSIONER FOR APPROVAL
THE EXPENSES IN 2021 ARE LOWER THAN BUDGET, PRIMARILY DRIVEN BY A CHANGE IN MAINTENANCE, A MARINE MAINTENANCE OVERHEAD METHODOLOGY WHICH IMPACTED THE STORMWATER UTILITY POSITIVELY AND HAD A NEGATIVE IMPACT ON THE ECONOMIC DIVISION ECONOMIC DEVELOPMENT LIAISON, WHICH YOU'LL SEE A LITTLE LATER
NEXT SLIDE PLEASE
HERE IS A HIGH LEVEL LOOK AT REVENUE AND EXPENSES FOR THE NORTHWEST SEAPORT ALLIANCE
REVENUE IS OVER BUDGET BY 10.4 MILLION FROM THE APL CMA CGM MODIFICATION AGREEMENT WITH A DELAYED START AND TERMINAL FIVE BEING OFFSET BY HIGHER VOLUMES THAN EXPECTED
OPERATING EXPENSES WERE LOWER FROM DEFERRED PROJECT SPEND AND LOWER ADMINISTRATIVE COSTS BOTH DIRECTLY AT THE ALLIANCE AND COST ALLOCATED FROM THE HOME PORTS
THE OPERATING INCOME OF 113,000,000 IS THE KEY COMPONENT IN THE DISTRIBUTABLE INCOME TO THE HOME PORTS WHICH WE WILL GO OVER IN OUR NEXT SLIDE
NEXT SLIDE PLEASE
OKAY
THIS SLIDE IS THE JOINT VIN
IT'S BASICALLY OUR INTEREST IN THE SEAPORT ALLIANCE
I'M GOING TO WALK THROUGH EACH OF THE LINE ITEMS HERE
SO FOR NORTHWEST SEAPORT ALLIANCE DISTRIBUTABLE REVENUE, THIS IS BASICALLY THAT HALF OF THE NET INCOME APPS AND A COUPLE OF OTHER SMALLER ITEMS THE CONTRA JOINT VENTURE REVENUE THIS 1.952 MILLION DOLLARS
THAT'S BASICALLY HALF OF THE MONEY THAT WE SEND TO THE NORTHWEST SEAPORT LINES FOR OUR STATE AND TERMINAL 46
THE OTHER HALF IS AT THE CRUISE TERMINAL OR FALLS INTO THE CRUISE LINE OF BUSINESS IN MARITIME DIVISION OTHER SERVICE TENANT REIMBURSEMENTS
THIS IS REMAINANCE REIMBURSABLE REVENUE AND THE PORT REVENUE FROM NORTHWEST SEAPORT ALLIANCE FACILITIES
THIS IS WHEN THEY HAVE EXCESS CARGO OR TIE UPS, ADDITIONAL LABORS
WHAT WOULD BE THE PORT OF SEATTLE SECTION OF TERMINAL 46
THAT'S WHERE THAT REVENUE COMES INTO PLAY
ALTOGETHER, THEY GAVE US TOTAL REVENUES OF ABOUT 54 AND A HALF MILLION DOLLARS
ALONG THE EXPENSE SIDE, THE BIG TAKEAWAY IS WE HAVE FOR JVDIRECT, WHICH IS THE JOINT VENTURE DIRECT COST
THERE'S AN ENVIRONMENTAL RESERVE BOOKED FOR THE BOOKED IN JUNE, AND THERE'S ALSO AN ADDITIONAL ABOUT $682,000 OF COST SAVINGS THAT WERE REALLY LINKED TO THE SEAPORT ALLIANCE
BUT WE BOOKED THEM TO THE JOINT VENTURE DUE TO KIND OF THE WAY WE ARRANGED IT WITH SEA PORT ALLIANCE
NEXT SLIDE, PLEASE
OKAY
AND FOR THE ACHIEVEMENTS, THE MARITIME ACHIEVEMENTS, THE ONE ITEM I'D LIKE TO POINT OUT IS THE ELLIOTT BAY FISHING AND COMMERCIAL OPERATIONS
THIS IS MOSTLY TERMINAL 91 AND A LOT OF THE DOLPHINS AND KIND OF SMALLER ASSETS WE HAVE THROUGHOUT ELLIOTT BAY
AND THEY WELCOME THE NORTH STAR TO TERMINAL 91 THIS YEAR AND INCREASED UTILIZATION OF SMALL CREWS AND RESEARCH VESSELS AND EXCEEDED BUDGET BY ABOUT $1.1 MILLION
IT'S A PRETTY SMALL STAFF THERE, AND THEY'VE BEEN DEALING WITH HEADWINDS WITH COVID AND A LOT, AND IT WAS A REALLY STRONG YEAR FOR THEM AS WELL
NEXT SLIDE, PLEASE
ALL RIGHT
NOW WE'LL SPEAK TO THE ECONOMIC DEVELOPMENT DIVISION
UNLESS YOU HAVE ANY OTHER QUESTIONS, THE NEXT SLIDE
CAN I JUST ASK? I DON'T SEE ALL THOSE SLIDES IN MY PACKET
WAS THAT FULL PRESENTATION IN OUR PACKET APPLIANCE MATERIALS IN MY PACKET UNDER ITEM ELEVEN A? SHOULD HAVE BEEN
OKAY
SO I DON'T KNOW WHY I DON'T SEE IT, BUT I HAVE ELEVEN A FOR SURE
ALL RIGHT
WELL, I'LL KEEP ON LOOKING
KELLY, QUICK QUESTION HERE
SURE
ARE THE TOTAL FOR DISTRIBUTION
IS THIS BROKEN DOWN BY EACH HOME PORT? SO WHEN YOU SAY $54 MILLION ABOUT JUST NORTH HARBOR
RIGHT
WELL, WE TAKE THE AGGREGATE NET INCOME AND IT'S SPLIT UP
SO IT'S NOT REALLY THE AMOUNT THAT WE GET IS BASED ON THE ENTIRE HALF OF THE ENTIRE SEAPORT ALLIANCE NET INCOME
SO THEY DON'T BREAK IT BY NORTH HARBOR OR SOUTH HARBOR
IT'S REALLY THE ENTIRE AMOUNT OF THE SUPPORT ALLIANCE AND THEN WE GET 50% COMES TO THE PORT CORRECTLY
NO, I UNDERSTAND, BUT THE NUMBERS ON THE SLIDE ARE AGGREGATE OR BOOKING THEM WHEN YOU LOOK AT NOI BEFORE DEPRECIATION, IS THE $52 MILLION TOTAL OR TWO
IS THAT NET INCOME TO THIS PORT OF SEATTLE? THAT'S OUR SHEET
YEAH, THAT'S OUR SHEET
OKAY
I WAS LOOKING AT THE APPENDIX
THAT'S WHY I DIDN'T SEE THE REST OF IT
THANK YOU VERY MUCH
THIS DIVISION, THE ECONOMIC DEVELOPMENT DIVISION, IS MADE UP OF ABOUT HALF OUR SPACE AND BUILDING PORTFOLIO WHILE MANAGING THE OTHER HALF OF MARITIME, PLUS THE BELL STREET GARAGE, OUR CONFERENCE CENTERS, PIER 69 FACILITIES AND OTHER ECONOMIC DEVELOPMENT TEAMS LIKE TOURISM, REAL ESTATE DEVELOPMENT, INNOVATION, ECONOMIC DEVELOPMENT GRANTS AND WOMEN OR WOMEN AND MINORITY OWNED BUSINESS ENTERPRISE
THE DIVISION ENCOUNTERED SOME CHALLENGES IN 2021 WITH THE BELL STREET PARKING GARAGE AND CONFERENCE AND EVENT CENTERS SEEING A SHIFT DURING THE PANDEMIC TOWARD TELEWORKING AND TELECONFERENCING, DRIVING A REDUCTION IN VOLUMES THROUGHOUT ALL THE CHALLENGES
THEY WERE ABLE TO MAINTAIN A 95% OCCUPANCY RATE WHILE MANAGING A SUCCESSFUL RENT DEFERRAL PROGRAM, WHICH ALLOWED COMPANIES LIKE GREEN, LATRINE AND OTHERS THE FLEXIBILITY TO INVEST AND THRIVE THROUGH THE BAND IN IT
NEXT SLIDE, PLEASE
THE FINANCIAL PICTURE FOR ECONOMIC DEVELOPMENT, EXCLUDING THE PENSION ADJUSTMENT, HAS NET OPERATING INCOME IN 2021 AT 3.2 MILLION BELOW BUDGET, BUT 642,000 HIGHER THAN 2020
THE BUDGET VARIANCE WAS DRIVEN BY SLOWER THAN ANTICIPATED RETURN IN CONFERENCE AND EVENT CENTER REVENUES FROM WHEN THE BUDGET WAS CREATED ABOUT A YEAR AND A HALF AGO
THE GROWTH IN OI FROM NET OPERATING INCOME FROM 2020 WAS A FACTOR OF LOWER COSTS AT THE CONFERENCE AND EVENT CENTER, ALONG WITH FAVORABLE CENTRAL SERVICES ALLOCATION, OFFSET BY SIGNIFICANT SPENDING IN 2021 ON THE WASHINGTON TOURISM ALLIANCE PROGRAM APPROVED BY THE COMMISSIONER IN 2020 AND HIGHER MAINTENANCE COSTS, WHICH I MENTIONED EARLIER
CAPITAL SPENDING CAME IN ABOUT 76% OF BUDGET
NEXT SLIDE, PLEASE
THIS IS A LIST OF THE ECONOMIC DEVELOPMENT PROGRAM ADVANCEMENTS EXECUTION OF THE TERMINAL 106 GROUND LINKS WITH TRAMMEL CROW DELIVERED BY OUR REAL ESTATE DEVELOPMENT TEAM WAS A HUGE WIN FOR THE PORT, GENERATING BOTH JOBS AND BRINGING IN OVER 3 MILLION IN NET INCOME ANNUALLY FOR THE NEXT 50 YEARS
DIVERSITY AND CONTRACTING GREW, UTILIZATION OF WMBE BUSINESSES AND WE'LL BE BRIEFING YOU ON THEIR PROGRESS WHEN Q FOUR NUMBERS ARE VETTED
THE TOURISM TEAM CONTINUED TO EFFICIENTLY ADVOCATE STATE AND LOCAL TOURISM OPPORTUNITIES BOTH DOMESTICALLY AND ABROAD
CITY GRANT PARTNERS HELPED 1000 PANDEMIC IMPACTED BUSINESSES, AND OUR ECONOMIC DEVELOPMENT TEAM WORKED WITH MARITIME BLUE TO SUPPORT SECOND AND THIRD INNOVATION ACCELERATOR COHORTS
THAT CONCLUDES MARITIME AND EDD
IF NO FURTHER QUESTIONS
MICHAEL TOM WILL PRESENT CENTRAL SERVICES
GO AHEAD
GOOD OPTION ON COMMISSIONERS AND THE SECOND DIRECTOR METRUCK
WAS THERE A QUESTION? NO, I WAS JUST SAYING, DAN, THAT WE SHOULD KEEP MAKING NOTE OF QUESTIONS
WE'LL DO THEM ALL AGAIN
GREAT, THANKS
NEXT SLIDE, PLEASE
ON THE LEFT IS A FINANCIAL SUMMARY FOR CENTRAL SERVICES OPERATING REVENUES
3.2 MILLION FAVORABLE TO THE BUDGET, MANY DUE TO UNBUDGETED FOR FEATURES REVENUE FROM THE POLICE DEPARTMENT, THE L TWO PENSION SUBSIDIES, THE PENSION REVENUE CONTRACT A LITTLE BIT EARLIER
THIS IS THE POLICE PORTION AND THEN THE OTHER DEVICES FIREFIGHTER
ON THE EXPENSES SIDE, ALL THE CENTRAL SERVICE DEPARTMENT EXCEPT POLICE ENGINEERING AND PCS
1.8 MILLION OVER BUDGET, MAINLY DUE TO 3.7 MILLION UNPREDICTED LEGAL EXPENDITURES AS WELL AS 2 MILLION AND BUDGETED OPPORTUNITY YOUTH INITIATIVE, WHICH NOW, AS YOU KNOW, HAVE BEEN RENAMED TO YOUTH CAREER LAUNCH PROGRAM
THOSE TWO UNBUDGETED ITEMS ARE ACTUALLY OFFSET BY OTHER SAVING NUMBERS
OTHER DEPARTMENTS POLICE DEPARTMENTS OF $361,000 OVER BUDGET, MAINLY DUE TO UNBUDGETED REVENUE THAT YOU'RE ACTIVITIES THERE BASED ON THE STATE RECOMMENDATION
ENGINEERING AND PCS $192,000 OVER BUDGET, MAINLY DUE TO LOWER CHARGES TO CAPITAL PROJECTS
OVERALL TOTAL EXPENSES ARE 2.3 MILLION UNABLE TO THE BUDGET WITHOUT PENSION CREDIT AND 27 MILLION FAVORABLE WITH PENSION CREDIT ON THE RIGHT HAND SIDE IS JUST A FEW BUSINESS HIGHLIGHTS AND YOU CAN FIND MORE FROM THE VICTIM REPORT IN YOUR PACKAGE
I BELIEVE YOU MOVE THE NEW PARTNERSHIP WITH THE SEATTLE AQUARIUM
IT'S ALSO WORTH TO NOTE THAT WE HAVE THREE PLANTING EVENTS AS PART OF THE GREEN CITY PARTNERSHIP LAST YEAR AND THEN IN ADDITION TO THE MEASURE TO STRENGTHEN THE CYBERSECURITY THAT'S LOCATED IN AYE
EXECUTIVE REPORT, EARLIER PLATFORMS AND DEFENSE SOLUTION IN DECEMBER LAST YEAR
NEXT SLIDE, PLEASE
HERE'S ANOTHER LOOK AT THE OPERATING EXPENSE
THE CHART ON THE LEFT SHOWS THE TOTAL OPERATING EXPENSES FOR CENTRAL SERVICES WITHOUT THE PENSION CREDIT
THE CHART ON THE RIGHT HAND SIDE SAW THE COST BREAKDOWN BY MAJOR CATEGORIES
SALARY AND BENEFITS SLIGHTLY BELOW BUDGET DUE TO VACANT POSITIONS, WAGES AND BENEFIT OVER BUDGET DUE TO LESS CHARGE TO CAPITAL PROJECTS, OUTSIDE SERVICE $836,000 OVER BUDGET MAINLY DUE TO UNBUDGET THE OUTSIDE LEGAL EXPENSES AND THE OPPORTUNITY YOUTH INITIATIVE DIMENSIONAL BARRIER ART EXPENSES ARE $269,000 TO THE BUDGET
NEXT SLIDE, PLEASE
WE TALKED ABOUT THE ACTUAL COMPARED TO THE BUDGET IN THE LAST TWO SLIDES HERE
I WOULD LIKE TO HIGHLIGHT THE YEAR TO YEAR ACTUAL CHANGES IN THIS LINE
2021 TOTAL OPERATING EXPENSES $522,000 LOWER THAN 2020 ACTUAL AND MAINLY DUE TO LOWER OUTSIDE SERVICES DUE TO A PROJECT DELAY IN 2021
ALSO LOWER EQUIPMENT SPENDING AND ALSO LOWER CHARGE FOR OTHER EMPLOYEE EXPENSES AND ALSO THE LOWER 2021 SPENDING PARTIALLY OFFSET BY HIGH INSURANCE EXPENSE AND LOWER CHARGE TO CAPITAL
SO THIS IS A NET OF SOME INCREASE IN REDUCTION COMPARED TO 2020 OVERALL
THESE ARE THE CENTRAL SERVICE NUMBERS
NOW LET ME TURN IT OVER TO THEM TO GO OVER THE PORT WIDE NUMBERS
NEXT TWO SLIDES, I THINK WE'RE GOING TO GO TO SLIDE 33 PLEASE
YES
SO I'LL WRAP UP WITH JUST A FEW PORT WIDE SLIDES HERE
SO THIS IS THE PORT WIDE FINANCIAL SUMMARY WITH THE TRIM GOING BACK TO 2019
THE BLUE AND GREEN BARS REPRESENT REVENUES
THOSE ARE STACKED BARS WITH REVENUES IN THE ORANGE OR EXPENSES
FIRST, I'LL JUST CALL YOUR ATTENTION TO THE FOUR BARS ON THE RIGHT WHICH COMPARES THE ACTUAL REVENUE AND EXPENSES TO THE PUGET
AND I THINK AS YOU'VE HEARD EARLIER, THE LARGEST REDUCTION IN OPERATING REVENUES COMPARED TO BUDGET CAME FROM THE AERONAUTICAL SIDE OF THE BUSINESS AND IN THE GARDEN, AGAIN, LARGELY REFLECTING THE IMPACT OF THE FEDERAL RELIEF GRANTS
BUT THEN ALSO AND THESE DO NOT INCLUDE THE PENSION CREDIT, SO THAT THE EXPENSES AS YOU CAN SEE ON THE RIGHT COMPARED TO BUDGET WERE PRETTY MUCH RIGHT, JUST $1 MILLION FAVORABLE TO BUDGET, SO PRETTY MUCH RIGHT ON BUDGET
BUT I ALSO THINK THIS HELPS ILLUSTRATE THE TRENDS OVER THE PAST SEVERAL YEARS
GOING BACK TO PREPANDEMIC IN 2019, YOU CAN SEE THE SIGNIFICANT DROP OFF IN REVENUES STARTING IN 2020 AND THEN THE GRADUAL RECOVERY OF REVENUES OVER THIS TIME PERIOD
THE DARK BLUE LINE REFLECTS NET OPERATING INCOME BEFORE DEPRECIATION
SO AGAIN WITH THE EFFECT OF THE INITIALLY THE FALL OFF IN REVENUES, BUT THEN THE GRADUAL IMPROVEMENT
YOU CAN SEE THAT OUR NET OPERATING INCOME HAS BEEN GRADUALLY IMPROVING, AND WE'RE EXPECTING THAT TREND TO CONTINUE AS WE ADVANCE WITH THE RECOVERY NEXT SLIDE
THIS CHART IS WHAT WE CALL OUR TABLE WITH THE COMPREHENSIVE FINANCIAL SUMMARY
THIS IS DIFFERENT THAN THE WAY WE PRESENT OUR FINANCIALS AND OUR AUDITED FINANCIAL STATEMENTS
TYPICALLY, IN THAT REPORT WE START WITH ALL THE OPERATING REVENUES AND EXPENSES GOING DOWN TO THE NOI AFTER DEPRECIATION, AND THEN WE GO INTO ALL THE NON OPERATING REVENUES AND EXPENSES
BUT FOR THIS PARTICULAR PRESENTATION, WE LIKE TO PULL ALL THE REVENUES TO THE TOP SECTION AND ALL THE EXPENSES TO THE BOTTOM BECAUSE IT REALLY GIVES YOU A BETTER SENSE OF THE TOTAL AMOUNTS OF RESOURCE INPUTS AND THE TOTAL RESOURCE EXPENDITURES
SO AS YOU CAN SEE, FOR EXAMPLE, IF YOU LOOK AT THE 2021 ACTUAL COLUMN, WHILE WE BOOKED $621,000,000 ROUGHLY OF OPERATING REVENUES, YOU CAN SEE DOWN THERE IN THE MIDDLE OF THE SLIDE, THE TOTAL AMOUNT OF INPUTS IS ACTUALLY JUST A LITTLE BIT UNDER A BILLION DOLLARS
SO WE HAVE ACCESS TO SIGNIFICANT RESOURCES, INCLUDING, AS YOU KNOW, REVENUE STREAMS LIKE A PORCH TAX LEVY, THE PASSENGER FACILITY CHARGES, AND CUSTOMER FACILITY CHARGES
OF COURSE, THE SIGNIFICANT GRANTS WERE RECEIVED FROM FEDERAL GOVERNMENT AND STATE, FOR THAT MATTER, CAPITAL CONTRIBUTIONS
SO YOU REALLY GET A BETTER SENSE OF THE TOTAL AMOUNT OF RESOURCES WE HAVE AT OUR DISPOSAL
WHEN YOU ADD THE OPERATING WITH THE NON OPERATING AND THEN SIMILARLY WITH THE EXPENSES DOWN AT THE BOTTOM
THIS IS A MIXTURE OF CASH AND NON WSDOT
WE SEE AGAIN, THE PENSION LINE NUMBER TWO DOWN IN EXPENSES IS THAT PENSION THROUGH UPGRADED, AS WE KNOW, IS NOT CASH RECEIVE DEPRECIATION, WHICH IS NOT CASH
SO AGAIN, IT'S JUST A MIXTURE OF CASH AND NON CASH EXPENDITURES
AND I ALSO WANTED TO CALL YOUR ATTENTION TO THE VERY LAST ITEM UNDER THE 2021 COLUMN CALLED SPECIAL ITEM
YOU CAN SEE THAT'S $34,907,000
SO THAT IS BOOKING AN EXPENSE FOR THE T 25 CLEANUP AND HABITAT MITIGATION WORK
THE WAY WE HANDLE THOSE EXPENDITURES
LIKE MANY OF OUR ENVIRONMENTAL EXPENDITURES, ONCE WE HAVE THE LIABILITY IDENTIFIED AND WE HAVE ENOUGH ASSURANCE ABOUT IT, WE ACTUALLY BOOK THAT FULL AMOUNT IN ONE YEAR, EVEN THOUGH THOSE EXPENDITURES MAY BE MADE OVER SEVERAL YEARS
SO WE'RE CALLING THIS OUT AS A SPECIAL ITEM, KIND OF PUTTING IT BELOW THE LINE BECAUSE WE DO THINK IT'S A MORE UNIQUE KIND OF AN EXPENDITURE
AND THEN THE VERY, VERY BOTTOM LINE
WHAT YOU SEE IS CHANGE IN NET ASSETS
THAT NUMBER IS COMPARABLE TO THE NET PROFIT, IF YOU WILL, FOR A PRIVATE COMPANY OR PRIVATE CORPORATION
THAT WOULD BE COMPARABLE TO THE BOTTOM LINE PROFIT OF THE CORPORATION
IT'S THE BOTTOM LINE CHANGING THAT ASSETS FOR THE PORT
AND YOU CAN SEE SOME OF THE TRENDS THERE AGAIN, IMPROVING SINCE 2020 IN PARTICULAR
SO I'M NOT GOING TO GO THROUGH ALL THESE ITEMS NEXT SLIDE, PLEASE
THIS IS A TABLE OF LET ME ASK A QUICK QUESTION BEFORE YOU MOVE ON
UNDER EXPENSES, IS THE GEO BOND PFC BOND INTEREST EXPENSE JUST THE INTEREST, ESPECIALLY ON THE GEO BOND SIDE
ARE THOSE NUMBERS JUST THE INTEREST WE'RE PAYING, OR IS IT ALSO INCLUDING PRINCIPAL? NO, THIS IS JUST THE INTEREST BECAUSE UNDER ACCOUNTING, WE ONLY ACCOUNT FOR THE INTEREST EXPENSE BECAUSE THE DEPRECIATION IS ACTUALLY THE PRINCIPAL PAYMENT IS ACTUALLY COUNTED FOR IN DEPRECIATION, WHERE YOU ACTUALLY AMORTIZED THE ORIGINAL COST
THAT'S EMBEDDED IN DEPRECIATION, ESSENTIALLY
GOOD TO KNOW
THANK YOU
AND NEXT SLIDE
SO THIS TABLE HIGHLIGHTS WHAT WE CALL THE COMMUNITY PROGRAMS SUMMARY
AND THERE'S NO HARD AND FAST RULE AS TO WHAT WE TERMINAL TO BE A COMMUNITY PROGRAM
WE DO OUR BEST TO CALL THESE OUT
THESE ARE LARGELY COMMISSION DRIVEN INITIATIVES
IT INCLUDES THE VARIOUS FUNDS LIKE THE ENERGY AND THE SUSTAINABILITY FUND, THE AIRPORT COMMUNITY ECOLOGY FUND, THE SOUTH KING COUNTY FUND, DUWAMISH COMMUNITY EQUITY PROGRAM
IT INCLUDES THE OPPORTUNITY YOUTH INITIATIVES
SO WE TRY TO COMPILE THESE IN ONE TABLE JUST TO GIVE YOU A SENSE OF THE NUMBER AND THE ORDER OF MAGNITUDE AND THE DOLLARS THAT WE SPEND MOSTLY OUTWARD AND COMMUNITY FACING FOR THE VARIOUS KINDS OF INITIATIVES AND PROGRAMS THAT THE COMMISSIONERS HAVE WANTED TO EXTEND OUT INTO THE COMMUNITIES
SO AGAIN, LIKE I SAID, THERE'S NO HARD AND FAST RULE AS TO WHAT'S IN HERE, BUT WE DO NOT INCLUDE OBLIGATIONS LIKE NOISE PROGRAM WE DON'T PUT IN HERE
BUT AS YOU CAN SEE, THE TOTAL AMOUNTS OF SPENDING HAVE BEEN INCREASING SINCE 2019 BEFORE ADJUSTING FOR THE PENSION CREDIT, IT'S GROWN FROM $8.8 MILLION IN 2019 UP TO $12.4 MILLION IN 2021
SO PRETTY SIGNIFICANT EXPENDITURES THAT WE ARE USING TO ASSIST THE COMMUNITY IN VARIOUS REGARDS
MANY OF THESE ARE FUNDED BY THE TAX LEVY, NOT ALL, BECAUSE SOME OF THESE ACTUALLY INCLUDE DEPARTMENTS LIKE THE TOURISM DEPARTMENT OR DIVERSITY AND CONTRACTING, BUT A LARGE PORTION OF THESE EXPENDITURES ARE FUNDED BY THE TAX LEVY
SO, AGAIN, I'M NOT GOING TO WALK THROUGH ALL THESE LINE BY LINE
IT LOOKS LIKE STEVE MIGHT HAVE A QUESTION
YEAH, LET ME JUST ADD TO THAT, DAN
YEAH
THESE ARE PORT PROGRAMS THAT WE JUST THINK ARE INTERESTING OF THE COMMISSIONERS THAT WE'RE GOING TO SAY
WE'RE NOT SAYING THAT THESE ARE COMMISSIONER
THEY BECOME OUR PROGRAMS LET ME JUST SAY THAT I JUST WANT TO SAY AND THIS IS JUST A SIMPLE WAY TO KIND OF CAPTURE SOME OF THOSE THINGS IN A FORMAT, BECAUSE IT ISN'T STRICTLY COMMUNITY BENEFITS HERE
A LOT OF OUR PROGRAMS ARE COMMUNITY BENEFITS
THIS IS JUST WANTED TO CAPTURE SOME OF THESE THINGS IN A MANNER THAT WE THOUGHT COMMISSIONER WOULD BE INTERESTED IN
THANKS FOR THE CLARIFICATION
OKAY, NEXT SLIDE
WHAT THEY HAVE IN COMMON IS THEY'RE ALL EXPENSES, RIGHT
THERE'S NO REVENUE BEING GENERATED BY ANY OF THESE THINGS, CORRECT? THAT'S CORRECT
RIGHT
THAT'S WHY WE USE THE LEVY TO FUND MANY OF THEM
AND SO THIS FINALLY, LOOK AT THE CAPITAL SPENDING FOR Y DATING BACK TO 2016
YOU CAN SEE SIGNIFICANT INCREASE STARTING BACK IN 2018 AND THEN IN 2021, WE SPENT JUST A LITTLE UNDER 80% OF THE CAPITAL BUDGET FOR THE YEAR
AND AS YOU SAW EARLIER, SOME OF THE LARGEST PROJECTS THERE WERE THE IAF INTERNATIONAL RIVALS FACILITY, AS WELL AS THE NORTH SATELLITE, WHERE SOME OF THE LARGER VARIANCES
SO GIVING YOU A SNAPSHOT OF CAPITAL SPENDING
SO I BELIEVE THAT'S ALL WE HAD FOR OUR PRESENTATION
AND WE ALSO HAVE A LOT OF INFORMATION IN THE APPENDIX FOR YOUR REVIEW AT YOUR LEISURE
AND AS MICHAEL TOM POINTED OUT, THERE ALSO IS A VERY COMPREHENSIVE WRITTEN REPORT THAT GOES ALONG WITH THIS PRESENTATION THAT YOU SHOULD HAVE IN YOUR PACKAGE, TOO
SO YOU CAN DIVE INTO A LOT MORE DETAILS IF YOU WOULD LIKE TO
AGAIN, WE'D BE HAPPY TO ANSWER ANY QUESTIONS
OKAY
AND AS A REMINDER, COMMISSIONER, THIS IS NOT AN AVIATION ITEM
THIS IS A BRIEFING
AND SO WITH THAT, I'M GOING TO ASK THAT IF YOU DO HAVE ADDITIONAL QUESTIONS, PLEASE RAISE YOUR HAND AND WE CAN CALL YOU
OKAY
I DO HAVE ONE QUESTION MYSELF
THIS IS FOR BORGAN
BORGAN
THE $340,000,000 LEVEL FOR THE AIRPORT DEVELOPMENT FUND BALANCE
WHAT IS THAT NUMBER BASED ON? HOW DID YOU DETERMINE $349 THAT WAS ESTIMATED AS TWELVE MONTHS OF OUR OPERATING AND MAINTENANCE COSTS
AND THERE'S NOTHING PARTICULARLY MAGICAL ABOUT THAT, OTHER THAN IT'S AN INDUSTRY MEASURE TO TALK ABOUT HOW MUCH CASH YOU NEED
CERTAINLY ONE OF THE LESSONS WE'VE LEARNED SINCE THIS PANDEMIC IS THAT OUR PREVIOUS POLICY OF HAVING TEN MONTHS OF OPERATING AND MAINTENANCE COSTS FOR THE AIRPORT WAS REALLY INADEQUATE TO ALLOW US TO EFFECTIVELY SURVIVE A DOWNTURN
AND WE DON'T KNOW WHAT THE NEXT ONE WILL LOOK LIKE
BUT I THINK AS WE DISCUSSED LAST FALL DURING OUR BUDGET, OUR GOAL IS TO INCREASE OUR OVERALL CASH BALANCE TO 18 MONTHS OF OPERATING AND MAINTENANCE COSTS BY 2025
AND THAT'S FOR A COUPLE OF REASONS
ONE, WE THINK THAT THAT IS A MEASURE THAT WILL ALLOW US TO HAVE A LEVEL OF CASH THAT MAKES US A MORE RESILIENT ORGANIZATION
BUT IT ALSO REFLECTS THE FACT THAT AS OUR CAPITAL PROGRAM GROWS AND THAT MOST OF OUR CAPITAL SPENDING IS FUNDED WITH DEBT, WE'RE NOT JUST LOOKING AT OUR CASH BALANCE TO HELP COVER OUR OPERATING COSTS IF OUR REVENUES GO AWAY
BUT WE HAVE ENORMOUS FIXED OBLIGATIONS IN THE WAY OF OUR DEBT SERVICE
AND TO HAVE EXTRA CASH TO ALLOW US TO BE ABLE TO COVER THAT IS GOING TO BE REALLY IMPORTANT GOING FORWARD
SO IT'S REALLY TWO THINGS
APPRECIATE THAT
ALL RIGHT, COMMISSIONER MOHAMED, THANK YOU
MAKING SURE I'M MUTED FIRST, BEFORE I ASK MY QUESTION, I JUST WANTED TO SAY THANK YOU ALL FOR THE OUTSTANDING FINANCIAL MANAGEMENT REPORT OUT
I WAS JUST RECENTLY BRIEFED ON ALL OF THIS, AND NO WONDER YOU GUYS HAVE RECEIVED THE FINANCIAL REPORTING AWARD
EVERYTHING IS SO DETAILED AND INFORMATIVE AND JUST WELL DONE ALL AROUND
MY QUESTION IS IN REGARDS TO WHEN CAN WE EXPECT A REPORT ON HOW YOU WILL BUILD IN TO THE BUDGET, THE ANTICIPATED FEDERAL INFRASTRUCTURE DOLLARS? CAN WE EXPECT SOME COST SAVINGS, AND WILL WE BE ABLE TO SEE THAT? SURE, I CAN TRY TO ADDRESS THAT ONE
YEAH
SO RIGHT NOW WE ANTICIPATE RECEIVING APPROXIMATELY $45 MILLION A YEAR AS PART OF THE ALLOCATED PORTION OF THE INFRASTRUCTURE BILL FOR AIRPORTS, AND THAT WILL BE OVER A FIVE YEAR PERIOD
AND OUR CURRENT THINKING IS THAT WE ARE GOING TO USE THAT MONEY TO FUND PROJECTS THAT WE WOULD DO ANYWAY
BUT BY USING THE GRANT MONEY, WE'LL BE ABLE TO ACCOMPLISH THOSE PROJECTS WITH LESS COST TO THE AIRLINES
AND IN PARTICULAR, WE ARE THINKING THAT WE WILL FOCUS ON THE RENOVATION OF THE SOUTH SATELLITE, WHICH JUST LIKE THE NORTH SATELLITE, WAS BUILT ABOUT 1970 AND IS IN DESPERATE NEED OF SEISMIC IMPROVEMENTS AND OVERALL UPGRADES AND MODERNIZATIONS
SO THAT WOULD BE A PROJECT THAT IS FROM A TIMING STANDPOINT, AND FROM A SCOPE STANDPOINT, WE THINK IT WOULD REALLY BENEFIT FROM THIS INFRASTRUCTURE GRANT
WE ALSO WILL LOOK TO THE COMPETITIVE PORTION OF THE INFRASTRUCTURE PROGRAM TO SUBMIT AN APPLICATION
WE THINK INITIALLY HAVING SOME ADDITIONAL MONEY FOR OUR RESTROOM PROJECTS, WE WILL SCORE WELL
AND THEN ONCE WE GET THE SOUTH SATELLITE PROJECT GOING, THAT PROJECT WOULD ALSO LIKELY COMPETE WELL FOR THE COMPETITIVE PORTION OF THE GRANTS
SO, AGAIN, WE'RE NOT REALLY LOOKING TO USE THE MONEY TO DO SOMETHING THAT WE NEVER WOULD HAVE DONE IF NOT FOR THE GRANTS
WE'RE LOOKING FOR THE ABILITY TO FUND OUR CAPITAL PROGRAM IN A MORE EFFECTIVE WAY
THAT'S REALLY HELPFUL
AND I'M WONDERING YOU MAKE THE POINT ABOUT LESS COST TO THE AIRLINES
AND SO I'M WONDERING, AS YOU GUYS ARE MAKING THOSE DECISIONS, WILL IT COME IN FRONT OF THE COMMISSION AT THAT TIME TO DECIDE ON HOW YOU GUYS WILL MOVE SOME OF THOSE DOLLARS AND DECIDE WHICH PROJECTS WILL COST SAVING, WHAT NEW PROJECTS THAT THEY WILL GO TO, NOT NECESSARILY NEW, BUT PROJECTS THAT ARE EXISTING
BUT AS THOSE DOLLARS ARE BEING SHIFTED AROUND, IS THAT GOING TO COME IN FRONT OF THE COMMISSIONER, OR IS THAT SOMETHING THAT THE FINANCIAL TEAM DECIDES ON? I'LL SAY IT'S A LITTLE BIT OF BOTH
WE BRING TO YOU A PLAN OF FINANCE EVERY YEAR, AND THAT'S A FIVE YEAR LOOK AHEAD AT ALL THE DIFFERENT SOURCES THAT WE WILL EMPLOY TO FUND OUR CAPITAL PROGRAM
TYPICALLY, THE SPECIFIC DECISIONS ABOUT GRANTS AND HOW WE USE THEM IS DELEGATED DOWN THROUGH EXECUTIVE DIRECTOR METRUCK
AND SO WE ARE MAKING DECISIONS ABOUT HOW TO OPTIMIZE THE USE OF GRANT DOLLARS THROUGHOUT THE YEAR
BUT WE CAN CERTAINLY BRIEF THE COMMISSIONER AND SEEK YOUR INPUT TO THE EXTENT THAT YOU'D LIKE TO OFFER SOME GUIDANCE
YEAH, THAT'S HELPFUL
I GUESS I'LL JUST SAY, JEFFREY, I SAW YOUR HAND UP
DID YOU WANT TO ADD SOMETHING TO THAT POINT
I'M SORRY
I WAS GOING TO OFFER SOMETHING COMMISSIONERS, BECAUSE I WORK VERY CLOSE TO WORK ON THIS
MAYBE WHAT WE COULD DO WHEN WE SIT DOWN WITH FAA AND WE DO A FIVE YEAR LOOK AHEAD ON HOW WHAT PROJECTS WE INTEND TO APPLY OR GRANT DOLLARS TO
BUT NOT THAT THERE'S A GUARANTEE THAT WE GET FUNDING, BUT WE PROPOSE OUR FUNDING PLAN
WE COULD SHARE THAT WITH YOU TO AARON AS PART OF ONE OF YOUR PACKAGES SO YOU COULD SEE WHAT WE INTEND TO
BUT ALSO I THINK MAYBE IT'S BEST IF WE EDUCATE SORRY, IF WE TELL YOU HOW WE APPLY GRANTS BECAUSE IT'S A COMPETITIVE PROCESS AND WE GO THROUGH A SCORING MECHANISM TO SEE WHICH FUNDS ARE BEST COMPETE FOR THOSE GRANTS, ESPECIALLY FOR COMPETITIVE GRANTS
WE COMPETE FOR OTHER AIRPORTS NATIONWIDE
SO, JUAN, WHAT I COULD OFFER IS THAT GIVE YOU THAT FIVE YEAR LOOK AHEAD, WHICH WE HAVE CURRENTLY EASILY
AND THEN OUR SEPARATE JUST WENT ON MUTED JUST FOR A SECOND
YEAH
SO THIS TEAM AUTOMATICALLY BECAUSE I HAVE FIVE MINUTES LEFT ON THE MEETING
I'M SORRY
APOLOGIES, EVERYBODY
CAN YOU HEAR ME NOW? WE CAN'T
COMMISSIONER MOHAMED, DO YOU WANT TO CONTINUE WITH YOUR
YEAH, WITH MY LINE OF QUESTIONS
THAT'S HELPFUL, JEFFREY
AND I GUESS WHAT I WILL SAY IS THE REASON WHY I ASKED THE QUESTION
OKAY, I'M GOING TO HAVE TO STOP EVERYBODY
I APOLOGIZE FOR THE INTERRUPTION
SOMEBODY IS RUNNING THE ACTUAL MEETING
OKAY
SOMEBODY IS LISTENING TO THE LIVE FEED
NOT THAT WE CAN HEAR
MRS HART
YEAH
SOMEBODY IS ACTUALLY PLAYING THE LIVE FEED
SO WE NEED THEM TO TURN OFF THE LIVE FEED IF THEY'RE TALKING
SO THAT'S WHAT'S HAPPENING HERE
OKAY
FROM MY SIDE OF THINGS, EVERYTHING SEEMS FINE
SO JEFFREY, CAN YOU UNMUTE YOURSELF BRIEFLY AND MAKE SURE YOU'RE STILL WORKING? FINE
I'LL FOLLOW UP WITH MORGAN AND GET BACK TO COMMISSIONER MOHAMED, CORRECT? YEAH
I'LL JUST CLOSE BY SAYING THE REASON WHY I'M SPECIFICALLY INTERESTED IN THIS AREA IS IN THE PREVIOUS FEDERAL RELIEF DOLLARS
THERE WERE AREAS WHERE DOLLARS WERE NOT SUPPORTED ON PORT RELATED PROJECTS RELATED TO THINGS LIKE GROUND TRANSPORTATION
COMMISSIONER MOHAMED, WE HAVE LOST YOUR FEED
YOU MAY TRY TURNING OFF YOUR VIDEO
WE DEFINITELY HAD SOMETHING WEIRD HAPPEN THERE
OKAY, LET'S PROCEED TO COMMISSIONER FELLOWS AND WE'LL RETURN TO COMMISSIONER MOHAMED WHEN SHE IS ABLE TO DIAL BACK IN
ALL RIGHT, THANK YOU
I HAD A COUPLE OF QUICK QUESTIONS
ONE WAS THE BOOKING OF THE COST FOR T 25 SOUTH
THAT PROJECT IS GOING TO BE AROUND FOR LIKE A DECADE, IT SOUNDS LIKE
SO YOU'RE JUST GOING TO CARRY THAT COST FOR A DECADE AND THEN I UNDERSTAND IT ALSO COULD EVENTUALLY GENERATE REVENUE AS A HABITAT CREDITS
I'M JUST WONDERING WHAT IS THE RATIONALE FOR HAVING THAT BOOK FOR THAT LOAN? WELL, THE WAY THIS IS SIMILAR TO HOW WE ACCOUNT FOR MAJOR ENVIRONMENTAL CLEANUP INITIATIVES
ESSENTIALLY UNDER THE ACCOUNTING RULES, ONCE WE DETERMINE A LIABILITY FOR A CLEAN UP PROJECT AND IF IT MEETS CERTAIN CRITERIA, CERTAIN TRIGGERS, WE ACTUALLY HAVE TO BOOK THAT
WE HAVE TO SET UP A RESERVE
WE BOOK THAT EXPENSE ALL IN THAT YEAR, EVEN THOUGH THOSE ACTUAL CASH FLOWS WILL BE SPREAD OUT OVER A NUMBER OF YEARS
IT'S JUST THE WAY THAT WE ACCOUNT FOR THOSE
I BELIEVE THAT CREDITS GENERATED AT 25 ARE CREDITS THAT WE ARE NOT GOING TO SELL, THAT WE ARE GOING TO USE OURSELVES FOR OTHER PROJECTS
BUT I CAN ASK KELLY TO JUMP IN OR IT'S DEFINITELY I THINK THE HOPE IS THAT WE WILL HAVE EXCESS, ACTUALLY, I DON'T KNOW
DO WE HAVE TO ATTRIBUTE A CASH VALUE FOR EVEN THE CREDITS THAT WE WOULD USE FOR OUR OWN LIABILITIES? WOULD YOU HAVE TO COME UP WITH A WAY TO ACCOUNT FOR THAT? I DON'T KNOW THE ANSWER TO THAT
I DON'T BELIEVE SO, BUT I DON'T KNOW
IT IS AN INTERESTING QUESTION, BUT I WOULDN'T
BUT ALSO, AT THIS TIME IN THE GAME, THAT NUMBER, WHATEVER, $34 MILLION, WHATEVER IT IS, THAT'S PROBABLY AS ROUGH AS IT GETS, YOU KNOW
SO WE'RE JUST BASICALLY PUTTING A PIN IN IT, SAYING WE'RE GOING TO CARRY THE COST UNTIL WE KNOW
MORE LIKELY IT'LL BE MORE THAN THAT
THEN WE CAN ADJUST THAT NUMBER, TOO, IN THE FUTURE IF THE ACTUAL COSTS GO EITHER UP OR DOWN AND WE CAN REVISE THAT PARTICULAR NUMBER AT THE TIME
OKAY
MY OTHER, MORE SPECIFIC QUESTION HAS TO DO WITH REVENUES THAT ARE POTENTIALLY GENERATED IN ONE LINE AND THEN MAYBE ACCRUED IN ANOTHER OR EXPENSES INCURRED IN ONE, FOR EXAMPLE, IN TOURISM, IN ECONOMIC DEVELOPMENT, WE PROMOTE TOURISM
RIGHT
AND SO I SEE ATTRIBUTED HERE WITH LIKE $1.9 MILLION IN EARNED MEDIA
RIGHT
SO THAT TO ITSELF IS A LITTLE BIT OF A CALCULATION OF SORTS, BUT IN FACT, A LOT OF THAT IS DIRECTED TOWARDS CRUISE
SO THE EXPENSE IS COMING OUT OF EDD, BUT THE BENEFICIARY COULD BE ON THE CRUISE SIDE, WHICH COULD BE BOOKED IN MARITIME
THE ONLY OTHER EXAMPLE I HAD IN MY MIND WAS AGAIN IN EDD
IF WE'RE DOING REAL ESTATE DEVELOPMENT, THAT THEN HELPS THE ALLIANCE
RIGHT
SO IT'S AN ALLIANCE ASSET
IT'S A REAL POINT OF SALE ASSET THAT'S INCREASING REVENUE FOR THE ALLIANCE, WHICH THEN COMES BACK TO US
I'M JUST WONDERING, DOES THAT MATTER OR IT'S ALL FUNGIBLE
IT ALL GOES TO THE SAME POT AND YOU DON'T CARE
I JUST THOUGHT DEPARTMENTS WANT TO BE ABLE TO ACCOUNT FOR THEIR OWN REVENUES AND EXPENSES
WE TRY TO MATCH THE BEST THAT WE CAN ON THE EARNED MEDIA EXAMPLE YOU MENTIONED, THAT'S NOT REAL CASH IN THE DOOR
THAT'S JUST A METRUCK THAT THEY USE
IT'S THE VALUE OF THE MEDIA COVERAGE THAT'S GENERATED BY THEIR ACTIVITIES
SO IT'S NOT REVENUES THAT WE RECEIVE
IT'S JUST THE VALUE
IT'S JUST RECOGNIZING THE VALUE OF THAT EARNED MEDIA
BUT THE SECOND QUESTION IS WE TRY THE BEST WE CAN TO MATCH REVENUES WITH EXPENSES
BUT IN SOME CASES, IT MAY NOT ALWAYS BE PERFECT LIKE WITH EXAMPLES, AS YOU SUGGESTED WITH THE ALLIANCE, BUT WE'D HAVE TO LOOK IT UP ON A CASE BY CASE BASIS
BUT I WAS JUST SAYING, LIKE IN THE GENERATION OF THE EARNED MEDIA, A LOT OF THAT BEING DIRECTED TO SELLING CRUISE SEATS
RIGHT
SO THERE'S PERHAPS EVEN A MORE DIRECT NEXUS BECAUSE THAT'S DIRECTLY TARGETING A CERTAIN REVENUE STREAM IN MARITIME
I THINK STEPHANIE MIGHT HAVE A POINT ON THIS ONE
WELL, WHAT I WAS GOING TO SAY, COMMISSIONER, IS WE HAVE A MATRIX ORGANIZATION, AND SO WHERE WE SPEND MONEY AND WHERE IT BENEFITS, THERE'S A LOT OF THESE LINES GOING ACROSS THE ORGANIZATION, AND WE TRY TO ACTUALLY RECORD THEM THAT WAY
FOR INSTANCE, OUR MAINTENANCE DEPARTMENT DOES WORK FOR ALL THE OTHER DIVISIONS, INCLUDING AVIATION
AND SO THROUGH KELLY'S TEAM, IT'S VERY COMPLICATED
THEY BUILD THINGS WHERE THEY GO TO THE BEST OF OUR ABILITY AS WE CAN, AS DAN SAID
SO THAT'S HAPPENING ALL THROUGHOUT THE PORT IS HOW I WOULD SAY IT
AND WHETHER THOSE PARTICULAR EXAMPLES ARE ACCURATELY REFLECTED
I THINK I'M HAPPY TO GO BACK AND LOOK AT THEM
I JUST KNOW THAT YOU WERE POTENTIALLY COMMITTED TO SEEING MARITIME PAY FOR MARITIME, AND I WAS JUST SEEING THIS AS BEING A CHALLENGE TO YOUR ACCOUNTING, THAT'S ALL
I'M NOT SAYING IT'S WRONG
I'M JUST SAYING IT'S TOUGH
BUT ANYWAY, THAT'S WHY WE HIRE THE BIG GUYS
THANK YOU, DAN
THAT'S THE END OF MY QUESTION
BUT IF I COVID JUST JUMP ON THAT AND JUST ADD TO THAT
COMMISSIONER, I HEAR WHAT YOU'RE SAYING
AS STEPHANIE SAID, WE TRY TO MATRIX THOSE AND WE TRY TO LOOK AT THOSE
BUT A COUPLE OF EXAMPLES YOU BROUGHT UP, THERE IS SOMETHING WE CAN TAKE BACK AND LOOK AT THAT
RIGHT
HOW TO ATTRIBUTE THOSE TO SPECIFICALLY SUPPORT SOMETHING
SO THANKS
SORRY TO JUMP IN THERE
ALL RIGHT
JUST SOME AWARENESS HERE
WE'RE ABOUT HALF AN HOUR OVER TIME
SO I WANT TO MAKE SURE WE GET TO THE OTHER COMMISSIONER QUESTIONS, COMMISSIONER CHO, AND THEN WE'LL GET BACK TO COMMISSIONER MOHAMED, WHO IS CUT OFF
HAMDI CAN GO AHEAD AND FINISH HER THOUGHT
THANK YOU, COMMISSIONER CHO
I THOUGHT WE ALL GOT CUT OFF AND THAT THE CAR HAD SOMETHING TO DO WITH IT, BUT IT SOUNDS LIKE IT WAS JUST ME
BASICALLY, WHAT I WAS SAYING, I THINK WHERE I LEFT OFF AT WAS I WAS SAYING THE REASON WHY I ASKED THE QUESTION WAS SO THAT WE CAN BE THINKING ABOUT PROJECTS THAT THE FEDERAL RELIEF DOLLARS DID NOT FUND, LIKE GRAND TRANSPORTATION
IF WE PUGET COST SAVINGS FROM THE INFRASTRUCTURE BILL, HOW CAN WE SUBSTITUTE SOME OF THOSE DOLLARS OVER TO THOSE PROJECTS, LIKE TRANSPORTATION THAT WERE LEFT OUT OF THE FEDERAL LEAF AID, IF THAT MAKES SENSE? THAT'S THE REASON WHY I'M INTERESTED IN SEEING THE PORT
SO HOPEFULLY YOU GUYS WILL BE ABLE TO PROVIDE THAT
SURE
I THINK AS JEFFREY BROWN INDICATED, I THINK WE CAN PROVIDE YOU A FULL PICTURE OF WHAT WE'RE TRYING TO DO WITH GRANTS, AND I THINK BY TALKING IT THROUGH, WE CAN PROBABLY GET A BETTER IDEA OF WHAT YOUR QUESTIONS ARE AND HOW WE CAN BETTER ADDRESS THEM
GREAT
THANK YOU
ALL RIGHT
GO AHEAD, COMMISSIONER CHO, I ACTUALLY WANT TO PUSH BACK AGAINST THE WAY BEFORE FRAMING THIS
MORGAN, I DON'T THINK IT'S ACCURATE FOR US TO SAY THAT WE'RE LOWERING COSTS FOR AIRLINES
IF WHEN WE USE THE FEDERAL FUNDING FOR THESE PROJECTS LIKE SOUTH SATELLITE, AT THE END OF THE DAY, IT'S NOT LIKE WE'RE LOWERING PSC'S OR LANDING FEES FOR THE AIRLINES, THEY'RE STILL PAYING THEM
SO I THINK IT WOULD BE MORE ACCURATE FOR US TO SAY THAT WE'RE RELIEVING COSTS SO THAT THEY CAN BE SPENT SOMEWHERE ELSE AT THE AIRPORT
BUT I DON'T THINK IT'S ACCURATE
AND I HAVE A PROBLEM WITH US SAYING THAT WE'RE LOWERING COSTS FOR AIRLINES
I THINK IT'S JUST THE FACT THAT IF YOU PAY FOR A PROJECT WITH REVENUE BONDS, WE PUT THE DEBT SERVICE IN THE RATE BASE AND WE RECOVER THOSE COSTS THROUGH TERMINAL RENTS
IN THE CASE OF A TERMINAL INVESTMENT, IF WE PAY FOR THOSE COSTS WITH GRANTS, IT CANNOT GO IN THE RATE BASE
SO WE DO NOT RECOVER THOSE COSTS FROM THE AIRLINE
SO THAT'S WHAT I MEAN BY EFFECTIVELY REDUCING THE COST OF THAT PROJECT TO AN AIRLINE RATE BASE
OKAY
THAT'S A VERY IMPORTANT NUANCE
I FEEL LIKE THE PUBLIC PROBABLY DOESN'T UNDERSTAND
I JUST WANT TO MAKE SURE THE PUBLIC DOESN'T THINK THAT WE'RE LIKE HANDING $45 MILLION A YEAR OVER TO AIRLINES SO THEY HAVE TO PAY LESS INTO OUR PROJECTS
YOU'RE VERY CORRECT
THANKS
OKAY
THANK YOU ALL
THAT WAS AN EXCELLENT PRESENTATION
I THINK WE ARE GOING TO MOVE ON TO OUR NEXT BRIEFING
THANK YOU, CLERK HART, CAN YOU READ THE NAME OF THAT INTO THE RECORD? MR BROWN, HOW'S AYE
HAND UP STILL, JEFFREY, DID YOU STILL HAVE A COMMENT OR IS THAT AN OLD HAND? I'M SORRY
THERE WE GO
AND AGAIN, APOLOGIES FOR THE GLITCHINESS THERE FOR A LITTLE BIT
I THINK THAT WAS RIGHT OVER THE TOP OF MR BROWN
SO APOLOGIES
THE NEXT ITEM IS ELEVEN B
NEIGHBORS ADVISORY COMMITTEE ANNUAL REPORT, 2020 TO 2021
ALL RIGHT, EXECUTIVE DIRECTOR METRUCK, CAN YOU INTRODUCE THE ITEM? THANK YOU, MR PRESIDENT
COMMISSIONER SUPPORTS ENGAGEMENT WITH THE NEIGHBORS ADVISORY COMMITTEE
PROVIDES AN EXCELLENT COMMUNICATION NETWORK FOR OUTREACH TO COMMUNITIES IMPACTED BY OPERATIONS AND DEVELOPMENT AT TERMINAL 91
THIS ADVISORY COMMITTEE PROVIDES US WITH A REPORT OF THEIR ACTIVITIES EACH YEAR, AND IT'S COMPRISED OF REPRESENTATIVES FROM MAGNOLIA AND QUEEN ANNE
PRESENTERS ARE TODAY ARE STEPHANIE JONES STEVENS, MANAGING DIRECTOR FOR MARITIME, ROSIE COURTNEY, SENIOR MANAGER, MARITIME ENGAGEMENT
AND WELDON ERIC KNACK FACILITATOR
SO I'LL TURN IT OVER TO STEPHANIE
THANK YOU, STEVE
THANKS
COMMISSIONERS AND EXECUTIVE DIRECTOR METRUCK FOR THE TIME TODAY
TERMINAL 91 IS ONE OF OUR MOST ACTIVE AND DIVERSE FACILITIES WITH ALL KINDS OF DIFFERENT ACTIVITIES OCCURRING THERE
HAVING THIS LONG STANDING RELATIONSHIP OF 40 YEARS WITH OUR NEIGHBORING COMMUNITIES
GIVING US AN OPPORTUNITY TO SHARE WHAT WE'RE DOING AND GET COMMUNITY INPUT HAS BEEN SO IMPORTANT
AND IT'S REALLY BEEN THE INTENTIONAL EFFORTS OF BOTH STAFF AND OUR COMMUNITY MEMBERS, AS WELL AS OUR FACILITATOR THAT HAS MADE THIS A SUCCESS
AND BEFORE I TURN IT OVER TO ROSIE, I WOULD LIKE TO JUST RECOGNIZE THAT THERE'S THREE KEY CONTRIBUTORS TO NAC THAT HAVE STEPPED AWAY OVER THE LAST COUPLE OF YEARS, SINCE WE'VE BEEN BEFORE YOU LEFT, AND I JUST WOULD LIKE TO TAKE A MOMENT TO RECOGNIZE THEIR SERVICE
LYNN HOGAN WAS THE FORMER PRESIDENT OF MAGNOLIA COMMUNITY COUNCIL AND A FORMER UW DEVELOPMENT OFFICE LEADERS
DURING HER FIVE YEARS ON NASA, SHE WAS A THOUGHTFUL CONTRIBUTOR AND BROUGHT THE PORT CLOSER TO THE MAGNOLIA COMMUNITY CLUB
ELLEN MONRAD SERVED AS PRESIDENT OF THE QUEEN ANNE COMMUNITY COUNCIL AND ENACT MEMBER FOR OVER 20 YEARS
HER LEADERSHIP AND COMMITMENT TO COMMUNITY SERVICE HAS BEEN REMARKABLE
AND THEN FINALLY, WHICH BRINGS ME GREAT SADNESS TO REPORT, JIM SMITH WAS A FOUNDING MEMBER OF THE NAC IN 82, AND HE SERVED UNTIL LATE 2020
JIM PASSED AWAY RECENTLY AT THE AGE OF 93
HE WAS A QUEEN ANNE RESIDENT WITH A PASSION FOR LIFE AND SERVICE
HE SERVED ON THE QUEEN ANNE COMMUNITY COUNCIL FOR 50 YEARS
HE WAS AN AVID BIKER BOATER, MUSICIAN, ARTIST, AND ACCOMPLISHED SKIER
WE REMEMBER JIM FOR TWO THINGS
FIRST, AYE
COMMITMENT TO PRODUCTIVE DIALOGUE THAT WE HAVE AT THE KNACK TODAY
AND SECONDLY, HE ALWAYS ARRIVED AT NAC MEETINGS ON AYE
BIKE EVEN WHEN HE WAS 91
THAT'S A REAL, I THINK, INSPIRATION FOR ALL OF US
AND OF COURSE, AS WELL, THE INTENTIONAL GOOD WORK FROM OUR OWN ROSIE COURTNEY, WHO IS THE SENIOR MANAGER OF CRUISE PUBLIC AFFAIRS AND COMMUNITY ENGAGEMENT AND IS ALSO OUR NAT LIAISON
I'M GOING TO TURN IT OVER TO ROSIE, AND THEN SHE WILL ALSO MAKE A FEW COMMENTS TO INTRODUCE OUR VERY CAPABLE FACILITATOR AS WELL
ROSIE, GREAT
THANK YOU, STEPHANIE
COMMISSIONER'S, EXECUTIVE DIRECTOR, METRUCK SO IT'S A PLEASURE FOR ME TO HIGHLIGHT THE WORK OF THE NEIGHBOR'S ADVISORY COMMITTEE EACH MONTH WHEN THE GROUP GATHERS
IT REMINDS ME OF THE PORT FORT'S COMMITMENT TO COMMUNITY ENGAGEMENT AND THE VALUE OF CONNECTING NOT JUST WITH COMMUNITIES, BUT WITH ACTUAL INDIVIDUALS
AND THESE INDIVIDUALS REALLY SHARE OUR PASSION FOR THE REGION
SO I APPRECIATE THEIR COMMITMENT AND THE PERSPECTIVE THEY BRING TO OUR DISCUSSIONS
EVERY MONTH, I WANT TO OFFER MY THANKS TO STEPHANIE AND TO DAVE MCFADDEN AND TO THEIR TEAMS THAT JOIN ME EVERY MONTH
WE HAVE A HEALTHY DIALOGUE, AND IT REALLY DOES HELP US ALL LEARN
SO WITH THOSE COMMENTS, I'M GOING TO TURN IT OVER TO WELDON WELDON IS OUR VERY CAPABLE FACILITATOR
AND WELDON'S MANY YEARS AS THE EXECUTIVE VICE PRESIDENT AT THE UNIVERSITY OF WASHINGTON HAS REALLY SERVED US WELL
SO WITH THAT CALL THE ROLL, TURN IT OVER TO YOU
THANK YOU, STEPHANIE
GOOD AFTERNOON
AS STEPHANIE AND ROSIE SAID, I'M WELL DENIED
I'M CONTRACTED BY THE PORT VIA 501 COMMONS, A NONPROFIT ORGANIZATION THAT USES VOLUNTEERS IN VARIOUS ENGAGEMENTS FOR NONPROFITS TO FACILITATE THE MEETINGS OF THE TERMINAL 91 NEIGHBORHOOD ADVISORY COMMITTEE
AS YOU'VE HEARD IT'S CALLED MAG AND THE RESIDENTS OF THE NEIGHBORHOODS OF MAGNOLIA AND QUEEN ANNE ARE INVOLVED WITH THE PORT
I
AS A FACILITATOR, I AM NOT A RESIDENT OF EITHER QUEEN ANN OR MAGNOLIA COMMUNITIES, NOR A POOR EMPLOYEE FOR THE SHORT FILM REDEVELOPMENT AGREEMENT OF 1983 AND AMENDED IN 85 AND 98
THE ANNUAL REPORT BEFORE YOU COVERS THE CALENDAR YEAR IS 2000 AND 22,021 HAS BEEN APPROVED BY THE KNACK MEMBERS
THE SUCCESS OF THE MAG RESULTS FROM THE COMMITMENT OF THE PORT STAFF TO KEEP THE MEMBERS INFORMED WITH A PROACTIVE ASSISTANCE OF ROSIE AND THEN THE MINUTES PROVIDING AND RECORD KEEPING OF PAM ALEX ALEXANDER AND A COMMENT FROM A LONG TERM MAG MEMBER, ELLEN MONRAD, WHO RECENTLY STEPPED DOWN
AS YOU JUST HEARD FROM STEPHANIE FROM REPRESENTING QUEEN ANNE, SUMS UP THE MAX VALUE TO THE COMMUNITIES FELLEMAN OFFERED
THE KNACK WAS NOT ONLY IMPROVED RELATIONS WITH THE PORT AND THAT'S VERY VALUABLE, BUT HAS BEEN A CATALYST FOR THE TWO NEIGHBORHOODS THEMSELVES WORKING TOGETHER ON ISSUES THEY HAVEN'T PREVIOUSLY EXISTED
HER COMMENTS UNDERSCORES MY OBSERVATIONS FROM WATCHING THE T 91 KNACK IN ACTION OVER THE PAST FOUR YEARS
THE REAL VALUE FOR SUPPORT FORD INCLUDES THE OPPORTUNITY TO INFORM THE NEIGHBORHOODS ABOUT POTENTIAL IMPACTS ON THEM, AS WELL AS TO ADDRESS MISPERCEPTIONS UPFRONT SO THAT MEMBERS CAN CORRECT THEM WITHIN THEIR NEIGHBORHOODS IN A TIMELY MANNER
THAT COMMITMENT IS DEMONSTRATED BY THE BOARD STAFF BY KEEPING THE KNACK INFORMED ABOUT OPERATIONAL ISSUES, CONSTRUCTION PROJECTS AND TENANT ACTIVITIES THAT CAN RESULT IN NOISE LIGHT TRAFFIC IMPACTS
SUCH COMMUNICATIONS ARE KEY TO THE MAX VALUE
THE UNUSUAL NATURE OF THE PAST TWO YEARS, AS YOUR MEETING TODAY DEMONSTRATES, IS DUE TO THE PANDEMIC HAS CREATED SOME ABNORMAL SITUATIONS FOR THE NECK
WE, LIKE YOU, HAVE HOSTED ALL OUR MEETINGS VIRTUALLY
WE TRIED ONE, MIXED ONE AND DIDN'T QUITE WORK
BUT WITH ROSIE'S SUPPORT AND THE MAG AND THE PORT STAFF, THOSE MEETINGS HAVE GONE OFF SEAMLESSLY SO WE CAN CONTINUE MEETING ON A REGULAR MONTHLY BASIS
SECOND, DUE TO THE REDUCTIONS IN THE TRAFFIC, DUE TO THE CANCELLATIONS AND REDUCTIONS OF THE CRUISE SEASONS AND PEOPLE WORKING FROM HOME, THE NAC DECIDED TO SUSPEND THE TRAFFIC STUDIES NEAR TERMINAL 91 OVER THE PAST TWO YEARS
FOR NOW, THE NAC IS USING THE 2019 TRAFFIC DATA AS THE MOST CURRENT INFORMATION WHILE EVALUATING WHEN TO RETURN TO CONDUCTING THE ONGOING TRAFFIC STUDIES AS THE NEW NORMAL EMERGES WILL THEN PROVIDE USEFUL DATA THAT WILL AGAIN PROVIDE USEFUL DATA REGARDING THE TRAFFIC FLOWS NEAR BAY AREA
THE REPORT LISTS KEY ISSUES INCLUDED IN THE T 91 MAG AGENDA OVER THE LAST TWO YEARS
THEY FOCUSED PRIMARILY ON PLANNING FOR ECONOMIC DEVELOPMENT OF THE T 91 UPLANDS INTERACTIONS WITH NEIGHBORING PROJECTS
SINCE THERE'S THE TINY VILLAGES WHICH MAGNOLIA ACTUALLY HELPS SUPPORT FINANCIALLY, THE SOUND TRANSIT LAKE PLANS AND THE FUTURE OF THE NATIONAL GUARD ARMORY SITE
THE PORT ENGAGED THE KNACK WITH EARLY INVOLVEMENT IN PLANNING ACTIVITIES FOR PORT PROPERTIES AS WELL AS TRANSPORTATION NETWORK IMPROVEMENTS IN THE INNER BAY BALLARD AREA TO HELP MITIGATE POTENTIAL NEGATIVE IMPACTS ON THE NEIGHBORHOODS
THE NAT COMMUNITY MEMBERS REQUESTED THAT THE PORT COMMISSIONERS CONTINUE TO ENGAGE WITH THE CITY OF SEATTLE LEADERS AND TO ADVOCATE FOR MORE OF A HOLISTIC APPROACH TO THE CITY'S PLANNING ACTIVITIES FOR THE BALLARD INTER BAY AREA, INCLUDING TERMINAL 91
MANY OF THOSE PROJECTS ARE BEING PLANNED FOR THE AREA THAT ARE BEYOND THE SCOPE OF THE KNACK AGREEMENT, BUT THEY ALL HAVE THE POTENTIAL IMPACTS ON T TERMINAL 91 AND THE TRAFFIC FLOWS ON THE ADJACENT STREETS
THANK YOU FOR YOUR TIME AND ATTENTION, AND IF YOU HAVE ANY QUESTIONS, WE'RE AVAILABLE
THANK YOU SO MUCH, ROBIN
WITH THAT, I'M GOING TO ASK THAT COMMISSIONERS WHO HAVE QUESTIONS RAISE THEIR HAND, AND I'LL CALL ON YOU IN THE ORDER THAT YOU RAISED
COMMISSIONER FELLEMAN
WELL, THANK YOU VERY MUCH AND COURTNEY AND STAFF FOR KEEPING THIS THING GOING ALL THESE YEARS
AND WELDON THANK YOU FOR THE PRESENTATION
I DO APPRECIATE GETTING THIS ANNUAL REVIEW, BUT YOU SHOULD FEEL WELCOME TO HAVE THE WRITE A LETTER OR SO TO THE COMMISSION AT LARGE IF YOU SEE THINGS THAT ARE COMING UP THAT YOU'D LIKE OUR ATTENTION TO
IN PARTICULAR, COMMISSIONER HASEGAWA AND I ARE ON THE INDUSTRIAL LANDS COMMITTEE
SO MANY OF THE ISSUES THAT I THINK ARE MAYBE OUTSIDE OF THE KNACK, BUT OF INTEREST TO THE KNACK, AS YOU MENTIONED, ARE THINGS THAT WE'RE TRACKING DIRECTLY AND LIKE THE ST THREE OR OTHER NEARBY
WE HAVEN'T HEARD ANYTHING LATELY ABOUT INTERBAY, BUT THE FISHING PIER, THINGS LIKE THAT MIGHT BE OF INTEREST
I'M STILL VERY INTERESTED IN LOOKING AT THAT BIKE PATH
UNFORTUNATELY, YOU DON'T HAVE YOUR BIKE ADVOCATE DEALING WITH THE THING THROUGH 91, BUT I WAS ALSO WONDERING, WASN'T BRUCE CARTER A RECENT MEMBER? AND I KNOW STEPHANIE DID A GOOD JOB OF ACKNOWLEDGING ALL PAST KNACK MEMBERS
WHEN DID BRUCE LEAVE THE KNACK? WAS THAT RELATIVELY RECENTLY? I WANT TO SAY BRUCE PROBABLY STEPPED AWAY MAYBE THREE YEARS AGO
OKAY
SO HE'S BEEN A LITTLE HAPPILY SPARED MORE MEETINGS IN AYE
CAREER
SO ANYWAY, I JUST KNOW THAT WE ARE CONTINUING TO MAKE PROGRESS ON 91, AND I ASSUME THAT'S WHERE THE GREATEST ATTENTION IS GOING TO BE
AND THERE'S ULTIMATE QUESTION ABOUT THE OPENING OF THE GATE AT THE NORTH END
IS THIS WOULD YOU SAY THIS IS THE MOST SUBSTANTIVE THING YOU'RE LOOKING AT, OR IS THAT WHAT THE TRAFFIC STUDY IS ABOUT? WELL, THE TRAFFIC STUDY IS A REQUIREMENT OF THE AGREEMENT THAT CREATED THE KNACK, AND IT'S DONE BASED UPON THE NC MEMBERS AGREEMENT WITH THE PORT ON HOW MANY TIMES A YEAR AND WHEN DURING THE YEAR THE TRAFFIC STUDIES SHOULD BE MADE
AND THERE'S ACTUALLY A RANGE OF TRAFFIC RESULTS THAT DETERMINES WHETHER ANY CHANGES HAVE TO BE MADE TO REDUCE THE TRAFFIC LEVELS
AND SO FAR, WE'VE ALL BEEN SINCE 2019 WITHIN THOSE RANGES
SO WE DON'T HAVE A PROBLEM
BUT ACTUALLY ALSO, WITH REGARD TO YOUR COMMENT, EACH OF THE MAGNOLIA AND THE QUEEN ANNE COMMUNITY ASSOCIATIONS DO PROVIDE DIRECT FEEDBACK ON VARIOUS ISSUES
THE KNACK TRIES TO IS AN OPPORTUNITY FOR THE TWO COMMUNITIES WITH THE PORT TO COMMUNICATE
THEN THEY WILL EACH INDIVIDUALLY SEND THEIR COMMENTS TO THEIR COMMUNITY ORGANIZATIONS RATHER THAN THE KNACK DOING IT DIRECTLY IN THOSE BROAD TRANSPORTATION ISSUES
AND ALSO, THE NORTHGATE IS A SERIOUS ISSUE BECAUSE THAT WILL REQUIRE A CHANGE IN THE IT'S EMBEDDED THAT THE NORTH GATE REMAIN CLOSED IN THE ORIGINAL SHORT REDEVELOPMENT AGREEMENT
SO THAT WILL REQUIRE IF ANYONE WANTS TO GO THERE AND THE NAC AGREEMENT ACTUALLY BEING RENEGOTIATED
THANK YOU FOR THAT, CLARIFICATION
OKAY
ARE THERE ANY OTHER FURTHER COMMISSIONER QUESTIONS OR COMMENTS? COMMISSIONER HASEGAWA
THANK YOU, MR CHAIR
NO QUESTIONS
I JUST WANTED TO CHIME IN AND FORMALLY THANK YOU, MR WALDEN, FOR APPEARING BEFORE US AND SHARING AN UPDATE FROM THE NEXT MY FIRST TIME GETTING TO HEAR FROM YOU, MY CAPACITY FOR COMMISSIONER, AND I ALSO SAW MY NOTES HERE THAT YOUR GROUP MEETS ON THE THIRD WEDNESDAY OF EACH MONTH
AND SO I JUST WANT TO LET YOU EXPRESS MY INTEREST IN BEING ABLE TO SIT IN ON A MEETING AND SORT OF HEAR HOW YOUR MEETINGS GO AND MEET AND GREET WITH YOUR GROUP
SO THANK YOU SO VERY MUCH FOR YOUR VIGILANCE ON THE ISSUES ON BEHALF OF YOUR COMMUNITIES AND NEIGHBORHOODS AND TO REITERATE WHAT COMMISSIONER FELLEMAN MENTIONED
I SERVE ON THE WATERFRONT INDUSTRIAL LANDS COMMITTEE AND HAVE AN AFFINITY FOR THE IMPACT THAT IT'S GOING TO HAVE WITH OUR LOCAL COMMUNITY
SO THANK YOU SO VERY MUCH
I LOOK FORWARD TO CONNECTING WITH YOU DIRECTLY IN THE NEAR FUTURE
AND ALL THE COMMISSIONERS ARE FULLY WELCOME TO ATTEND ANY OF THE KNACK MEETINGS THAT IS OPEN, AND WE WELCOME YOUR PRESENCE
THEY'D BE THANK YOU, WILLIAM
THANKS FOR APPEARING BEFORE US TODAY
WITH THAT, WE ARE MISSING ANY FURTHER QUESTIONS OR COMMENTS
WE ARE GOING TO MOVE ON TO OUR NEXT BRIEFING ITEM
CLERK HART, CAN YOU READ THE FINAL ITEM INTO THE RECORD? AND THEN WE'LL HAVE EXECUTIVE DIRECTOR METRUCK INTRODUCE
ERIC
YES
THIS IS ITEM ELEVEN C, THE PORT EFFORTS RELATED TO THE INFRASTRUCTURE INVESTMENT IN JOBS ACT BRIEFING COMMISSIONERS
LATE LAST YEAR, PRESIDENT BIDEN SIGNED THE INFRASTRUCTURE INVESTMENT AND JOBS ACT, THE IIJA INTO LAW AT A BIPARTISAN CEREMONY AT THE WHITE HOUSE
AS I MENTIONED TO YOU IN MY EXECUTIVE DIRECT REPORT AT THE TIME, THIS LEGISLATION CONTAINS BILLIONS OF DOLLARS FOR THE AIRPORT AND SEAPORTS, INCLUDING A FORMULA ALLOCATION FOR APPROXIMATELY $45 MILLION, WHICH YOU'VE ALREADY TALKED ABOUT TODAY
AND I SAW ERIC WAS READY TO TALK ABOUT IT THERE A LITTLE BIT
BUT WITH THAT ALLOCATION OF $45 MILLION TO SEA FOR EACH YEAR FOR THE NEXT FIVE YEARS, OUR MAIN FOCUS CONTINUES TO BE POSITIONING THE PORT IN THE NORTHWEST SEAPORT LINES TO APPLY FOR COMPETITIVE GRANTS FROM THE IJA GOING FORWARD
SO THE PRESENTERS THIS AFTERNOON ARE ERIC SCHOENFIELD, SENIOR MANAGER, FEDERAL AND INTERNATIONAL GOVERNMENT RELATIONS, AND MELISSA PARKS, GOVERNMENT RELATIONS POLICY ANALYST
SO, ERIC, WELL, THANK YOU SO MUCH, COMMISSIONERS AND EXECUTIVE DIRECTOR METRUCK
I'M VERY PLEASED TO BE HERE WITH YOU TODAY ON THIS FINAL ITEM OF THE DAY WITH MY COLLEAGUE, MELISSA PARKS
TODAY MARKS THE FIRST DAY THAT A FINANCIAL PERFORMANCE BRIEFING HAS STOLEN MY THUNDER
BUT I STILL THINK WE HAVE SOME INTERESTING THINGS TO SHARE ABOUT THE INFRASTRUCTURE INVESTMENT AND JOBS ACT
AND CLEARLY, THE ENTIRE REASON WE'RE DOING THIS PRESENTATION TODAY IS I THINK THERE'S A LOT OF COMMISSIONER INTEREST AND PUBLIC INTEREST IN WHAT DOLLARS ARE AVAILABLE TO THE PORT AND OUR COMMUNITIES, HOW WE'RE PURSUING THOSE DOLLARS AND THE BEST WAY TO SPEND THOSE DOLLARS
SO REALLY OUR GOAL TODAY IS TO TALK ABOUT WHAT THOSE OPPORTUNITIES MIGHT BE
AS STEVE MENTIONED, NEXT SLIDE, PLEASE
THIS PIECE OF LEGISLATION, BELIEVE IT OR NOT, WAS ONLY PASSED LESS THAN FOUR MONTHS AGO
AND SO WE'RE STILL LEARNING A LOT ABOUT HOW THE BIDEN ADMINISTRATION IS PLANNING TO ROLL OUT THESE DOLLARS
THERE'S STILL GOING TO BE MUCH MORE INFORMATION WE LEARN AND NEW OPPORTUNITIES THAT PRESENT THEMSELVES OVER THE NEXT FEW MONTHS AND YEARS
SO TODAY WE'RE REALLY TALKING ABOUT HOW WE'RE APPROACHING THIS OPPORTUNITY, AND WE'LL CONTINUE, AS COMMISSIONER MOHAMED MENTIONED, TO FIND OPPORTUNITIES TO ENGAGE THE COMMISSION, TO UPDATE THE COMMISSIONER BECAUSE THIS IS SUCH AN IMPORTANT DISCUSSION NOT ONLY FOR THE PORT AND THE SEAPORT ALLIANCE, BUT FOR MANY OF OUR PARTNERS AS WELL
NEXT SLIDE, PLEASE
SO LIKE I SAID, NOVEMBER 15 WAS WHEN THE PRESIDENT SIGNED THIS BILL
THIS IS REALLY AN INCREDIBLY HISTORIC PIECE OF LEGISLATION
EIGHT YEARS, $1.2 TRILLION IN NEW INVESTMENT IN A WIDE VARIETY OF AREAS
AND WHILE THERE IS STILL A LOT TO LEARN AND A LOT TO DO, WHAT'S REALLY BEEN AMAZING IS THAT PRESIDENT BIDEN AND THE BIDEN ADMINISTRATION HAVE BEEN WORKING REALLY HARD TO GET THESE DOLLARS OUT THE DOOR RIGHT AWAY
NEARLY $100 BILLION HAS ALREADY BEEN ANNOUNCED, ANOTHER $50 BILLION IN RFIS AND WHAT WE CALL NO FOES NOTICES OF FUNDING OPPORTUNITY HAVE BEEN RELEASED
SO THERE IS A GREAT DESIRE FROM THE BIDEN ADMINISTRATION TO GET THESE DOLLARS OUT THE DOOR, START FUNDING AND BUILDING INFRASTRUCTURE RIGHT AWAY, WHICH WE'RE REALLY EXCITED ABOUT
AND THAT'S WHY WE REALLY WANT TO BE ON TOP OF THIS OPPORTUNITY
NEXT SLIDE
SO WE HAVE THREE GOALS AS WE START TO PURSUE THIS OPPORTUNITY
THE FIRST IS TO, OF COURSE, MAXIMIZE FUNDING TO THE PORT
HOW CAN WE GET AS MUCH MONEY AS POSSIBLE, NOT ONLY BECAUSE WE WANT TO FUND THE INFRASTRUCTURE THAT WE ARE TRYING TO BUILD, BUT ALSO BECAUSE THESE DOLLARS WILL HELP US ADDRESS OUR SUSTAINABILITY GOALS, OUR EQUITY GOALS, OUR QUALITY OF LIFE GOALS
THIS CAN REALLY HELP US ACHIEVE A NUMBER OF THE THINGS THAT WE HOPE TO DO ABOVE AND BEYOND WHAT'S ALREADY IN OUR BUDGET AND OUR CAPITAL IMPROVEMENT PLAN
WE'RE ALSO TAKING A VERY BROAD PERSPECTIVE ON WHAT OUR FUNDING NEEDS ARE
THIS IS NOT JUST ABOUT HARD INFRASTRUCTURE, BUT WHAT ADDITIONAL DOLLARS ARE OUT THERE TO SUPPORT OUR RELATED ACTIVITIES
WORKFORCE DEVELOPMENT IS A GREAT EXAMPLE OF THAT WHERE IT IS NOT, QUOTE UNQUOTE, INFRASTRUCTURE, BUT THERE ARE FUNDING OPPORTUNITIES THAT WE CAN TAKE ADVANTAGE OF
AND FINALLY, ONE OF THE THINGS THAT WE KNOW IS THERE ARE SO MANY POTS OF MONEY IN THE IAJA THAT ARE MAYBE NOT THE PORT CAN APPLY FOR THOSE DOLLARS, BUT THEY ARE DOLLARS THAT CAN BENEFIT OUR COMMUNITY
AND SO WHAT ROLE CAN WE PLAY TO SUPPORT OUR COMMUNITY MEMBERS, MAKE THEM AWARE, SUPPORT THEIR APPLICATIONS, AND HELP THEM GET FUNDING THAT CAN JOINTLY ACHIEVE SOME OF OUR GOALS? SO NEXT SLIDE, WE TALK ABOUT THE IJ REALLY IN FIVE CATEGORIES, AND THIS IS SORT OF AN INTERNAL RUBRIC, BUT YOU MAY FIND IT INTERESTING
THERE'S MONEY THAT IS FOR AIRPORTS AND SEAPORTS, EITHER BY FORMULA OR FOR COMPETITIVE DOLLARS
WE WILL OBVIOUSLY GO AFTER ALL OF THOSE DOLLARS
THERE'S ALSO THE ADDITIONAL MONEY THAT WE CAN APPLY FOR
MAYBE THEY'RE NOT SPECIFICALLY FOR PORTS, BUT TWO GREAT EXAMPLES ARE HIGHWAY FUNDING, ELECTRIC VEHICLE CHARGING INFRASTRUCTURE
IT'S NOT JUST FOR PORTS, BUT WE CAN ACTUALLY APPLY FOR SOME OF THESE DOLLARS IN WAYS THAT WE TRADITIONALLY HAVE NOT AND GET ADDITIONAL FUNDING FOR SOME OF OUR PROJECTS
THERE ARE PROJECTS THAT BENEFIT THE PORT
FOR EXAMPLE, PROJECT MONEY THAT SEATTLE CITY LIGHT COULD APPLY FOR FOR MARITIME ELECTRIFICATION, FREIGHT MOBILITY INVESTMENTS THAT THE CITY OR THE COUNTY OR THE STATE COULD APPLY FOR, TRANSIT DOLLARS, ET CETERA
AND THEN FINALLY THAT BULLET THAT I MENTIONED ON THE LAST SLIDE, THAT MAYBE WE CAN HELP OUR COMMUNITY PARTNERS, THE PUBLIC SCHOOLS ARE NONPROFIT PARTNERS, GET SOME OF THESE DOLLARS IN WAYS THAT HELP US ACHIEVE THE GOALS THAT WE HAVE FOR THEM
AND THEN, OF COURSE, THERE IS MONEY THAT NONE OF US ARE AVAILABLE TO APPLY FOR, AND WE'LL JUST LET THAT MONEY GO
NEXT SLIDE
SO LET'S TALK FOR A SECOND ABOUT THE PORT SPECIFIC PROVISIONS
YOU KNOW, A LOT OF THIS ALREADY, BUT $20 BILLION FOR AIRPORT WILL BREAK THAT DOWN ON THE NEXT SLIDE, 17 BILLION, QUOTE UNQUOTE, FOR SEAPORTS AND MARITIME
A MAJORITY OF THAT IS ACTUALLY NOT DIRECTLY FOR PORTS TO APPLY FOR
BUT IT'S, FOR EXAMPLE, THE US ARMY CORPS OF ENGINEERS TO USE
BUT THEY USE THAT MONEY
AND I'LL GIVE YOU AN EXAMPLE RIGHT HERE
FOR THIS FISCAL YEAR, US ARMY CORPS OF ENGINEERS USA, AS WE CALL THEM, HAS ALREADY ANNOUNCED THAT THEY WILL SPEND $10.8 MILLION TO UPGRADE THE SMALL LOCKS AT THE BALLARD LOCKS, THE LAKE WASHINGTON SHIP CANAL, WHICH, OF COURSE, IS REALLY IMPORTANT FOR OUR RECREATIONAL BOATING AND OUR FISHING INDUSTRY
AND THEN FINALLY, 27 BILLION FOR PORT ELIGIBLE TRANSPORTATION INVESTMENTS
THE RAISED GRANT, WHICH WE'LL TALK ABOUT IN A MOMENT, THE INFRA GRANT, WHICH IS ANOTHER SORT OF MAJOR ROAD AND CAPITAL TRANSPORTATION PROGRAM
SO LOTS OF OPPORTUNITIES THAT ARE REALLY SPECIFIC TO THE PORT
NEXT SLIDE, LET'S TALK ABOUT THE AIRPORT DOLLARS
AND I KNOW THERE'S OBVIOUSLY A LOT OF INTEREST HERE, AND THIS ENTIRE SLIDE COULD JUST SAY TBD, BUT WE'LL SHARE WITH YOU AS MUCH AS WE CAN ABOUT WHAT WE DO KNOW RIGHT NOW
LET'S START WITH THAT $15 BILLION
SO THAT IS $15 BILLION FOR AIRPORT INFRASTRUCTURE GRANTS
THAT'S THE NAME OF THE PROGRAM, AIG AIRPORT INFRASTRUCTURE GRANTS
IT IS DISTRIBUTED BY FORMULA
AND THAT FORMULA IS BASED ON EMPLOYMENTS, THE NUMBER OF PASSENGERS THAT WE PUT ON AIRPLANES THAT LEAVE OUR AIRPORT EVERY YEAR
SO RIGHT NOW WE'RE ESTIMATING ABOUT $240,000,000 OVER FIVE YEARS
BURIEN MENTIONED A FEW PRESENTATIONS AGO $45 MILLION THIS YEAR
SO 45 TIMES FIVE
BUT WE KNOW THAT OUR EMPLOYMENT WILL GROW, SO IT WILL PROBABLY BE A LITTLE BIT MORE THAN $45 MILLION IN FUTURE YEARS
WHAT'S GREAT ABOUT THIS MONEY IS WE GET IT, OR AT LEAST RATHER WE CAN APPLY FOR REIMBURSEMENT FOR IT ONCE WE ARE SPENDING THAT MONEY ON ELIGIBLE PROJECTS
SO WE CAN SORT OF KNOW THAT THIS MONEY IS COMING
WE KNOW THAT IT CAN BE USED FOR ANY PFC ELIGIBLE PROJECTS
THAT'S PASSENGER FACILITY CHARGE, WHICH IS ACTUALLY MORE EXPANSIVE THAN WHAT WE USUALLY GET WITH WHAT WE CALL AIRPORT IMPROVEMENT PROGRAM DOLLARS FROM THE FAA, WHICH THESE PFC DOLLARS CAN BE USED FOR TERMINAL PROJECTS
THEY CAN BE USED FOR A VARIETY OF DIFFERENT PROJECTS AROUND THE AIRPORT AND ACTUALLY CAN BE USED FOR SOME OFF AIRPORT PROJECTS AS WELL
ALL OF THE PROJECTS THAT WE WANT TO USE FOR THIS YEAR'S, $45 MILLION, HAVE TO BE IN OUR FAA SUBMITTED CAPITAL IMPROVEMENT PLAN BY MARCH 11, WHICH IS THIS WEEK
AND SO, AGAIN, AS BURIEN MENTIONED, A LOT OF WHAT WE'RE PLANNING ON RIGHT NOW IS WHAT ARE THE PROJECTS WE KNOW WE'RE DOING ONE OF THE PROJECTS WE'VE TALKED TO THE FAA ABOUT DOING, JEFFREY MENTIONED THIS AS WELL
AND THAT'S THE UNIVERSE OF PROJECTS RIGHT NOW
BUT IT DOES I WANT TO BE CLEAR, NOT ONLY INCLUDE THINGS THAT ARE ON AIRPORT, BUT OUR AIRPORT CIP INCLUDES THINGS LIKE OUR NOISE INSTALLATION PROGRAM, FOR EXAMPLE
WE ALSO KNOW THAT THIS PROGRAM CAN BE SAVED UP INTO ONE GRANT
SO IF, FOR EXAMPLE, WE WANTED TO USE ALL OF THE $240,000,000 ON ONE PROJECT, AND OBVIOUSLY, THAT'S A DECISION THAT CAN BE MADE
IF WE WANTED TO USE IT ALL ON ONE PROJECT, WE COULD ACTUALLY JUST NOT TAKE THAT $45 MILLION A YEAR BUT WAIT TILL THE END, GET ONE BIG CHECK AND USE IT FOR ONE BIG PROJECT
AGAIN, THAT'S A DECISION WE'LL HAVE TO MAKE
BUT WANTED TO BE CLEAR
THAT IS AN OPPORTUNITY THERE
WE KNOW THAT WE EXPECT TO FIND OUT ADDITIONAL CRITERIA ABOUT THE AIG GRANTS IN MAY
AND SO WE'LL LEARN A LOT MORE ABOUT THIS PROGRAM AND WHAT WE CAN GET REIMBURSED FOR FROM THIS PROGRAM
THEN THERE IS THE $5 BILLION AIRPORT TERMINAL PROGRAM
THAT IS A COMPETITIVE GRANT, BUT WE KNOW THAT 55% OF 5 BILLION, WHATEVER THAT NUMBER IS, LET'S CALL THAT 3 BILLION
JUST OFF THE TOP OF MY HEAD IS RESERVED FOR LARGE HUBS, LARGE HUB AIRPORTS LIKE SEA
SO WE'RE COMPETING WITH A LIMITED UNIVERSE THERE FOR THAT $5 BILLION
IT'S A BILLION DOLLARS A YEAR
AND AS YOU CAN SEE, THERE, IT IS SPECIFICALLY FOR TERMINAL PROJECTS
THAT'S WHY IT'S CALLED THE AIRPORT TERMINAL PROGRAM
AND THIS IS A LIST OF THE KINDS OF THINGS THAT THEY ARE PARTICULARLY INTERESTED IN FUNDING WITHIN THE TERMINAL WITH THIS GRANT PROGRAM
AND THEN FINALLY HERE, THERE'S BEEN A TON OF INTEREST FROM THE COMMUNITY ABOUT HOW WILL THE AIRPORT SPEND ITS DOLLARS
WE KNOW THAT THERE'S GOING TO BE LIMITS
FOR EXAMPLE, THE AIRPORT TERMINAL PROGRAM CAN ONLY BE USED ON TERMINAL
BUT THERE'S THIS IMPORTANT LINE IN THE LEGISLATION THAT WAS PASSED THAT SAYS ANY FUNDS THAT ARE UNOBLIGATED IN THE FIFTH YEAR CAN BE USED REALLY SPECIFICALLY FOR THESE COMMUNITY PURPOSES SO THAT WE'LL BE ABLE TO APPLY IN YEAR FIVE TO DO EVEN MORE FOR THE COMMUNITY THAN MAYBE THE 15 BILLION
AND THE $5 BILLION PROGRAMS WILL ALLOW US WITHIN THEIR SPECIFIC CRITERIA
NEXT SLIDE
I WANT TO TALK ABOUT WHAT WE'RE DOING ALREADY, AND IT IS MY UNDERSTANDING, GIVEN MY KNOWLEDGE OF OUR HISTORY, OF APPLYING FOR FEDERAL GRANTS, THAT WE HAVE NEVER APPLIED FOR THREE MAJOR FEDERAL GRANTS AT THE SAME TIME BEFORE, IN PART BECAUSE IT'S REALLY HARD TO DO AND IT TAKES A LOT OF TIME AND EFFORT, BUT WE'RE DOING IT BECAUSE THIS IS A HISTORIC OPPORTUNITY, AS WE MENTIONED
SO THESE ARE THE THREE GRANTS THAT ARE AVAILABLE RIGHT NOW THAT WE ARE PURSUING
FIRST IS THE $1 BILLION, THE FIRST YEAR OF THE AIRPORT TERMINAL GRANT PROGRAM
BORGAN MENTIONED VERY QUICKLY IN PASSING THAT RIGHT NOW OUR PLAN IS TO APPLY FOR REIMBURSEMENT OR RATHER TO APPLY FOR GRANT FUNDING FOR THE CONCOURSE B, C, AND D RESTROOM UPGRADES PROJECT
A NUMBER OF REASONS WE COULD GET INTO FOR THAT
BUT ONE OF THE MOST SPECIFIC REASONS IS THAT FOR THIS YEAR WE NEED TO APPLY FOR SHOVEL READY PROJECTS
AND SO THERE'S A LIMITED UNIVERSE OF PROJECTS THAT ARE NOT ALREADY GRANT FUNDED THAT ARE ELIGIBLE
IT'S A GREAT PROJECT
IT HELPS US WITH NOT ONLY THE CUSTOMER EXPERIENCE, BUT THERE ARE SOME EQUITY AND ENVIRONMENTAL UPGRADES AS WELL TO THIS PROJECT THAT WILL BE, I THINK, VERY COMPETITIVE FOR THIS PROGRAM
AND THAT GRANT APPLICATION IS DUE MARCH 28
IT'S A PRETTY QUICK TURNAROUND
SECOND IS THE RAISED GRANTS
SOME OF YOU USED TO KNOW THIS PROGRAM AS TIGER OR BUILD
WE ACTUALLY RECEIVED A TIGER GRANT MANY YEARS AGO FOR TERMINAL 46
SO THIS IS A SURFACE TRANSPORTATION PROGRAM, $1.5 BILLION RIGHT NOW IN THE CURRENT NOFO
AND ONE OF THE GREAT THINGS ABOUT THIS YEAR WITH THE IIJA IS THEY ADDED LANGUAGE IN THE IJ LEGISLATION THAT SPECIFICALLY CLARIFIES THAT AIRPORT ROADWAY PROJECTS ARE ELIGIBLE FOR THESE ROADWAY DOLLARS
WE DON'T HAVE A LOT OF ROADS AS THE PORT
MOST OF THE ROADS THAT OUR FACILITIES USE, BOTH AIRPORT AND SEAPORT ARE CITY ROADS OR COUNTY ROADS OR STATE ROADS OR THINGS LIKE THAT
BUT WE DO HAVE THIS ONE ROAD THAT YOU ACTUALLY JUST AS COMMISSION APPROVED A PROJECT TO ENHANCE, AND THAT IS THE AIRPORT ARRIVALS ROADWAY PROJECT
SO WE ARE PURSUING $25 MILLION, WHICH IS THE MAXIMUM AMOUNT FOR THIS GRANT FOR THAT PROJECT
I WILL SHARE THAT WE ARE INCREDIBLY LUCKY TO HAVE YASMINE MEDI ON AS A FEDERAL GRANTS MANAGER, EMERGENCY HIRE, WHO IS JUST DOING AN ABSOLUTELY AMAZING JOB WITH THIS PROJECT AND BRINGING TOGETHER PEOPLE FROM ALL ACROSS THE PORT TO APPLY FOR THIS FUNDING
IT IS A REALLY HELPFUL PROCESS, NOT ONLY BECAUSE WE WOULD LOVE TO GET THIS $25 MILLION, BUT REALLY WE ARE LEARNING A TON ABOUT HOW TO APPLY FOR LARGE FEDERAL GRANTS
AND ONE OF YASMINE'S FINAL PROJECTS FOR US WILL BE ACTUALLY AN EXIT MEMO WITH LESSONS LEARNED ABOUT HOW WE CAN BE MORE COMPETITIVE AND MORE PREPARED FOR FEDERAL GRANTS MOVING FORWARD
AND THEN FINALLY, THE PORT INFRASTRUCTURE DEVELOPMENT PROGRAM, PIDP, AS IT'S KNOWN CURRENT NOFO, IS $450,000,000 TO SUPPORT GOODS MOVEMENT
THIS IS REALLY FOR MARITIME GOODS MOVEMENT PURPOSES
THIS IS SOMETHING THAT WE ARE FOR THIS YEAR DEFERRING TO NORTHWEST SEAPORT ALLIANCE TO APPLY FOR
THEY'RE APPLYING FOR FUNDS FOR T FIVE GATE AND EXPANSION PROJECTS
THAT GRANT IS DUE MAY 16
BUT I DO WANT TO SAY THAT WE BELIEVE THAT THIS IS A HUGE OPPORTUNITY PIDP, FOR A LOT OF OUR OTHER GOALS, WHETHER WE'RE TALKING ABOUT MARITIME ELECTRIFICATION, THERE'S SPECIFICALLY WORKFORCE TRAINING DOLLARS IN PIDP AS WELL
SO WE'RE WORKING REALLY HARD WITH BOTH THE MARITIME ENVIRONMENTAL TEAM AND BOOKDA AND LUIS ON THE WORKFORCE DEVELOPMENT TEAM TO PREPARE OURSELVES FOR THE NEXT CYCLE SO THAT WE CAN REALLY APPLY FOR SOME OF THESE ELECTRIFICATION AND WORKFORCE TRAINING DOLLARS
WE KNOW WHAT'S GREAT ABOUT THE IGA IS WE HAVE FOUR MORE BITES OF THIS APPLE ABOVE AND BEYOND THE USUAL FUNDING THAT'S IN THIS PROGRAM
NEXT SLIDE, MELISSA, IS THIS YOUR SLIDE OR MY SLIDE? LET ME JUST MINE
FANTASTIC
AND I WILL TURN THINGS OVER TO YOU
GREAT
HI, COMMISSIONERS
SO THE NEXT COUPLE OF SLIDES, I'LL GIVE YOU A LITTLE MORE DETAIL ON SOME OTHER PROGRAMS YOU MIGHT BE INTERESTED IN
BUT THE NOTICES FOR FUNDING AREN'T OUT YET
SO THERE'S A NEW PROGRAM THROUGH DEPARTMENT OF TRANSPORTATION TO REDUCE TRUCK EMISSIONS AT PORTS
IT'S NEW
WE'RE STILL WAITING FOR DETAILS, BUT IT'S INTENDED TO TEST, EVALUATE AND DEPLOY PROJECTS THAT REDUCE TRUCK EMISSIONS, ESPECIALLY FROM IDLING
AND THEN THERE'S THE NATIONAL ELECTRIC LOW EMISSION VEHICLE INFRASTRUCTURE FUNDING
WE KNOW IT'S A PRIORITY FOR THE BIDEN ADMINISTRATION TO HELP REDUCE OUR TRANSPORTATION EMISSIONS
THERE'S A FEW DIFFERENT POTS OF MONEY HERE 5 BILLION GOING TO STATES THROUGH FORMULA TO SUPPORT NATIONAL CORRIDOR EFFORT
AND THEN THERE'S TWO AND A HALF BILLION THAT'S COMPETITIVE THAT WE THINK THERE'S SOME POTENTIAL HERE TO SUPPORT OUR AIRPORT ELECTRIC VEHICLE INFRASTRUCTURE NEEDS
AND THEN HALF OF THAT STILL OF THE COMPETITIVE FUNDING IS BEING PRIORITIZED FOR COMMUNITIES
SO INCLUDING LOW MODERATE INCOME NEIGHBORHOOD COMMUNITIES WITH LOW RATIO OF PRIVATE PARKING AND MORE DENSITY
AND THEN FINALLY, WE KNOW OFFSHORE WIND IS A PARTICULAR INTEREST TO YOU, COMMISSIONER CALKINS
AND IT DID GET A LITTLE LOVE IN THIS BILL WITH 60 MILLION TOWARDS IMPROVING OFFSHORE WIND TECHNOLOGIES
BUT WORTH NOTING FOR US THAT THE PORT INFRASTRUCTURE DEVELOPMENT PROGRAM THAT ERIC JUST MENTIONED ON THE LAST SLIDE CAN BE USED TO UPGRADE PORTS TO HANDLE OFFSHORE WIND SUPPLY CHAIN NEEDS
AND ACTUALLY, THE LAST ROUND OF PIDP AWARDS INCLUDED TO OFFSHORE WIND SUPPORT PROJECTS AT PORTS
AND THEN ALSO TO NOTE, THERE ARE SIGNIFICANT INVESTMENTS BEING TARGETED AT EXPANDING AND INCREASING THE RESILIENCY OF OUR ELECTRIC GRID TO HANDLE THIS PUSH TOWARDS GREATER ELECTRIFICATION AND RENEWABLES
SO WHILE NOT DIRECTLY OFFSHORE WIND, IT IS BUILDING THE CAPACITY TO ADD THAT TO THE GRID
NEXT SLIDE, PLEASE
SO WE'RE ALSO TRACKING PROGRAMS THAT MIGHT BE OF INTEREST TO OUR PARTNERS AND ULTIMATELY SUPPORT COMMUNITY GOALS AS WELL
THERE'S A NUMBER OF PROGRAMS DEDICATED TO PUBLIC SCHOOLS, INCREASING ENERGY EFFICIENCY AND AIR QUALITY, REPLACING LEAD PIER, REPLACING OLD BUSSES WITH ELECTRIC MODELS
AND WE KNOW, FOR EXAMPLE HERE, HIGHLAND SCHOOL DISTRICT HAS THE INFRASTRUCTURE TO SUPPORT MORE ELECTRIC BUSSES, AND THEY'RE INTERESTED IN PURSUING THAT
AND THEN RELEVANT TO THE WORK WE DO WITH COMMUNITIES IS THIS HEALTHY STREETS PROGRAM
IT'S FOCUSED ON TREE EQUITY AND EXPANDING TREE COVER IN COMMUNITIES TO HELP MITIGATE HEAT ISLAND EFFECTS AND IMPROVING AIR QUALITY, AMONG OTHER BENEFITS
AND PRIORITY IS FOR LOW INCOME COMMUNITIES, PARTNERSHIPS WITH COMMUNITY BENEFIT AGREEMENTS AND YOUTH CORPS
OUR COMMUNITY ENGAGEMENT STAFF THOUGHT THIS WOULD BE A GOOD OPPORTUNITY TO FURTHER SUPPORT OUR GREEN CITY PARTNERSHIPS AND OTHER NEAR PORT COMMUNITIES LOOKING TO ENHANCE THE TREE CANOPY NEXT SLIDE
SO THAT WAS A FEW EXAMPLES
AS YOU CAN SEE, WE HAVE A TON MORE LISTED HERE
REALLY, THE ADMINISTRATION'S GOALS WITH THIS FUNDING FOCUSING ON EQUITY, SUSTAINABILITY, GOOD PAYING JOBS, ALL ALIGNED VERY WELL WITH OUR PORT VALUES AND GOALS
BUT ACTUALLY, BEFORE I TALK TO YOU MORE ABOUT HOW WE'RE TRACKING THESE, I WANTED TO POINT OUT THAT AT THE TOP OF THE SLIDE, THE REGIONAL CLEAN HYDROGEN HUB EFFORT, THE PORT IS ON THE LEADERSHIP TEAM FOR THE PACIFIC NORTHWEST REGIONAL HYDROGEN HUB EFFORT, AND IT'S STILL IN THE EARLY STAGES
WE ANTICIPATE THE APPLICATION PERIOD FOR THAT THIS SUMMER, BUT THAT IS ANOTHER THING THAT WE'RE PURSUING
SO WHILE YOU LOOK AT THESE, I JUST WANTED TO TELL YOU A LITTLE BIT ABOUT HOW WE'RE TRACKING THE OPPORTUNITIES
SO I'VE CREATED A SPREADSHEET
I'VE SHARED IT WITH THE PORT STAFF FROM MAJOR DEPARTMENTS TO USE AS A REFERENCE TOOL, AND YOU HAVE A COPY OF IT IN YOUR PACKET
WE'RE USING IT AS A WORKING DOCUMENT
WE'LL BE UPDATING IT AS NEW INFORMATION AND NOTICES OF FUNDING OPPORTUNITY COME OUT
WE'LL ALSO BE WHITTLING DOWN THE PROGRAMS THAT AREN'T ACTUALLY RELEVANT
I WAS OVERLY INCLUSIVE WHEN DEVELOPING IT, SO WE DIDN'T MISS ANYTHING
IT ALSO INCLUDES A RANGE OF OPPORTUNITIES THAT COVER THE CATEGORIES THAT ERIC MENTIONED AT THE BEGINNING
SO THERE'S FUNDING THAT WE ARE DIRECTLY ELIGIBLE FOR AND THEN FUNDING THAT WE MIGHT NOT BE ELIGIBLE FOR BUT MIGHT BE OF INTEREST TO OUR PARTNERS
AND SO WE'RE USING THAT AS AN INTERNAL TOOL TO KIND OF MAKE SURE THAT WE'RE ALL AWARE OF WHAT EACH OTHER IS LOOKING AT
NEXT SLIDE
AND THAT'S BACK TO YOU, ERIC
FANTASTIC
SO WE'LL JUST CLOSE IT OUT WITH A COUPLE OF THOUGHTS HERE, BECAUSE AS I MENTIONED EARLIER, WE'RE TRYING TO USE THIS RUN UP PERIOD IN THIS FIRST YEAR NOT ONLY TO GET FUNDS, BUT ALSO TO REALLY LEARN HOW WE CAN BE MORE COMPETITIVE IN THE FUTURE
APPLYING FOR FEDERAL GRANTS HAS REALLY BEEN AN AD HOC EFFORT OVER THE YEARS AT THE PORT
SOMETIMES WE DO, SOMETIMES WE DON'T
WE HAVE NOT SORT OF BUILT THAT INTERNAL CAPACITY
AND SO A LOT TO LEARN HERE
AND I THINK THE FIRST THING THAT WE'LL JUST SHARE IS WE REALLY KNOW THAT A PROJECT NEEDS TO START ITS DEVELOPMENT WITH THE IDEA IN MIND THAT A FEDERAL GRANT MIGHT BE AN OPPORTUNITY BECAUSE THERE ARE CERTAIN PLANNING, CERTAIN PURCHASING REQUIREMENTS, CERTAIN WAYS THAT YOU APPROACH A PROJECT TO ENSURE THAT IT CAN BE ELIGIBLE AND COMPETITIVE FOR FEDERAL DOLLARS
AND SO THAT MIGHT BE SOMETHING WE ACTUALLY HAVE TO SORT OF HAVE A CULTURE SHIFT, FOR LACK OF A BETTER TERM, TO BUILD IN THAT FEDERAL GRANT PLANNING INTO PROJECT DEVELOPMENT, WHETHER IT'S THE PROJECT TEAM, THE FINANCE TEAM, THINKING ABOUT HOW WE DO THESE THINGS, PURCHASING AND SMALL BUSINESS USAGE SO THAT WE ARE COMPETITIVE AND DON'T AUTOMATICALLY EXCLUDE OURSELVES FROM THESE PROGRAMS INTERNAL CAPACITY ALWAYS AN ISSUE
LIKE I SAID, WE'VE BEEN SO LUCKY TO HAVE YASMIN AS OUR EMERGENCY HIRE
WE HAVE NOT HAD A DEDICATED GRANT WRITER AT THE PORT BEFORE, AND WE'VE HAD SOME PEOPLE SORT OF STEP UP ALONG THE WAY
RYAN MCFARLAND FOR AYE
TIGER GRANT
WE HAVE FOLKS AT THE AIRPORT AND ON THE MARITIME SIDE WHO APPLY FOR SMALL GRANTS FROM TIME TO TIME
IF THIS BECOMES SOMETHING THAT WE DO ON A MORE REGULAR BASIS, MAYBE THAT IS SOMETHING WE WANT TO HAVE AS A PERMANENT CAPACITY
AND I WANT TO RECOGNIZE THAT THE GRANT WRITING ALONE TAKES A LOT OF TIME AND EFFORT AND IS A RESOURCE THAT WE COULD USE
BUT ALSO, ONCE YOU GET THE GRANT, THERE ARE SIGNIFICANT INTERNAL ADMINISTRATIVE RESPONSIBILITIES
AND SO WE DON'T WANT TO JUST GET A BUNCH OF GRANTS AND THEN TOSS IT IN THE LAP OF DAN THOMAS AND TEAM
WITHOUT THAT CAPACITY TO TRACK AND REPORT ALL THOSE THINGS, IT'S REALLY IMPORTANT
AND WE COULD EXCLUDE OURSELVES FROM FUTURE FEDERAL GRANTS IF WE DON'T SHOW THAT WE'RE USING THAT MONEY WELL AND RESPONSIBLY
AND THERE ARE OTHER INTERNAL CAPACITIES AS WELL
FOR EXAMPLE, FOR THE RAISED GRANT
WE NEED TO DO A FULL BENEFIT COST ANALYSIS
AND WE'RE LUCKY THAT WE ACTUALLY HAD THAT CAPACITY AT THE AIRPORT TO TAKE ADVANTAGE OF WITH AN EXISTING SERVICE CONTRACT
BUT THAT MIGHT BE SOMETHING WE NEED TO PREPARE FOR IN THE FUTURE
AND THEN FINALLY, AS WE'VE SAID MULTIPLE TIMES, WE KNOW THAT SOME OF THE BENEFICIARIES THAT WILL BENEFIT MOST FROM THESE DOLLARS ARE OUR COMMUNITY PARTNERS
WE WANT TO HELP THEM
WE WANT TO MAKE THEM AWARE OF THESE OPPORTUNITIES
WE WANT TO SUPPORT THEM WITH LETTERS OF SUPPORT
BUT WHAT ELSE CAN WE DO? PART OF THE REASON WHY LOCAL COMMUNITIES DON'T GET MANY FEDERAL GRANTS IS IT TAKES A LOT OF EFFORT AND EXPERTISE, AND SO WHAT CAN WE DO TO HELP BUILD THEIR CAPACITY? DO WE HAVE INTERNAL CAPACITY THAT WE CAN PARTNER WITH THEM ON? ARE THERE WAYS TO BUILD COALITIONS THAT MAKE IT EASIER FOR THEM TO DO THAT? AND THEN FINALLY, WHEN WE AND SOME OF OUR COMMUNITY PARTNERS ARE BOTH ELIGIBLE FOR A GRANT, HOW DO WE SORT OF DETERMINE WHETHER WE'RE GOING TO COMPETE WITH THEM OR PARTNER WITH THEM? AND OBVIOUSLY, THAT SORT OF PRIORITIZATION DECISION IS ALWAYS DIFFICULT
WE'LL TRY AND FIGURE THAT OUT
NEXT SLIDE, WHICH I THINK IS THE LAST SLIDE HERE
SO OBVIOUSLY, WE'RE SUBMITTING THREE GRANTS RIGHT NOW
WE'RE TRACKING NEW OPPORTUNITIES, CURRENT NO FOES AND FUTURE GRANT CYCLES
I WILL MENTION REALLY BRIEFLY THAT SOME OF THE MONEY IS GOING DIRECTLY TO THE STATE AND THE PSRC
SO WE DON'T WANT TO JUST WORRY ABOUT APPLICATIONS DIRECTLY TO THE FEDS
HOW CAN WE GET SOME PASS THROUGH FEDERAL DOLLARS AS WELL, POTENTIALLY FOR SOME OF OUR PROJECTS, OUTREACH TO PARTNERS
AND THEN FINALLY, WE WILL CLOSE BY SAYING WE WANT MORE MONEY FROM THE FEDERAL GOVERNMENT, EVEN THOUGH THIS IS A HISTORIC $1.2 TRILLION LEGISLATION
THERE'S MORE THAT MUST BE DONE
THE BUILD BACK BETTER ACT, WHICH IS DEAD OR STALLED OR HOWEVER CHARITABLE YOU WANT TO CALL IT, HAD SIGNIFICANT DOLLARS FOR SUSTAINABLE AVIATION FUELS, $3.5 BILLION FOR MARITIME DECARBONISATION
WE CAN'T JUST WALK AWAY AND GIVE UP ON THAT
WE'VE GOT TO KEEP FIGHTING FOR THAT
AND I KNOW THERE'S A LOT OF INTEREST FROM THE BIDEN ADMINISTRATION AND CONGRESS TO GET THAT DONE, AT LEAST IN SOME WAY, PARTICULARLY THE CLIMATE PROVISION
SO WE'LL CONTINUE TO FIGHT FOR EVEN MORE MONEY
NOT THAT WE'RE NOT GRATEFUL FOR 1.2 TRILLION, BUT WE'D RATHER HAVE 2.4 TRILLION
SO WE WILL CONTINUE THAT FIGHT
AND THAT CONCLUDES OUR PRESENTATION
HAPPY TO ANSWER ANY QUESTIONS OR TAKE ANY FEEDBACK
THANK YOU SO MUCH, COMMISSIONERS
THANK YOU, ERIC AND MELISSA, THAT WAS AN EXCELLENT AND VERY COMPACT PRESENTATION FOR A LOT OF INFORMATION
SO, COMMISSIONERS, RAISE YOUR HAND IF YOU HAVE A QUESTION
I'LL CALL YOU IN ORDER
OKAY, COMMISSIONER MOHAMED
ALL RIGHT, FIRST
YEAH, I JUST WANT TO SAY I AGREE WITH COMMISSIONER CALKINS
THANK YOU FOR THE EXCELLENT PRESENTATION, ERIC AND MELISSA
AND ALSO, I JUST WANT TO SAY CONGRATULATIONS ON BRINGING YASMINE MATTHEW TO THE PORT OF SEATTLE
SHE IS A BRILLIANT WRITER AND THINKER
AND SO LET'S HOLD ON TIGHT AS MUCH AS POSSIBLE
ALSO, I'M SO GLAD TO SEE THAT IN THE SEAPORT AND MARITIME FUNDING SECTION, WE HAVE THE REDUCTION OF TRUCK ADMISSIONS AS A PRIORITY AREA, AND THAT $400 MILLION FOR COMPETITIVE GRANTS
ERIC, I REALLY APPRECIATED ALL OF YOUR EMPHASIS ON THE PRIORITY AREAS, ON EQUITY AND US REACHING COMMUNITIES
AND THAT IS A CLEAR PRIORITY FROM THE BIDEN ADMINISTRATION
AND WHILE WE CAN'T IMPROVE EVERY PART OF THE INDUSTRY AND THE QUALITY OF LIFE FOR THOSE WHO WORK IN THE INDUSTRY, I THINK IT'S SO IMPORTANT THAT WE ARE DOING EVERYTHING WE CAN TO GET THE MOST OUT OF THESE DOLLARS AND TO KEEP WORKERS IN MIND
AND SO SPECIFICALLY AROUND THE REDUCTION OF TRUCK ADMISSIONS, REALLY THINKING ABOUT THAT WORKFORCE AND THE CLEAN TRUCK PROGRAM, OPPORTUNITIES TO EXPAND THAT, TO CREATE NEW POTS OF MONEY TO GET DOLLARS IN THE HANDS OF TRUCK DRIVERS
SO THEY ARE NOT LEAVING OUR REGION OR THE INDUSTRY, BUT THAT THEY FEEL VERY SUPPORTED
SO I JUST WANTED TO UNDERSCORE THAT AND ALSO SAY THAT THE RESTROOM BILL, I DON'T KNOW IF EVERYONE SAW THAT, BUT HOUSE BILL PASSED IN THE STATE
AND SO I THINK THAT WAS A HUGE WIN FOR THE KING COUNTY
AND SO EVERYTHING THAT WE CAN DO AS A PORT, I THINK WE SHOULD CONTINUE TO SUPPORT THAT COMMUNITY AND EXPAND DOLLARS THERE
THOSE ARE MY COMMENTS
THANK YOU SO MUCH, COMMISSIONER MOHAMED
ANY OTHER QUESTIONS OR COMMENTS? COMMISSIONER FELLEMAN, SORRY FOR ME BEING BLANCHED HERE IN THE SUNLIGHT, BUT I WAS WONDERING ABOUT WELL, THIS IS ABOUT THE IIJA, IN PARTICULAR, THE DEGREE TO WHICH WE ARE USING THE GRANTS WE'RE GETTING OR APPLYING FOR TO LEVERAGE REGULAR APPROPRIATION THINGS LIKE WE HAVE NDAA
WE HAVE COAST GUARD REAUTHORIZATION, WE HAVE OTHER VEHICLES BY WHICH WE CAN ACHIEVE THESE SAME KIND OF GOALS
AND I'M JUST WONDERING, ARE WE REFERRING TO EACH OTHER? I MEAN, THE TWO DIFFERENT POTS OF MONEY AS WE PURSUE THESE, CREATING SOME SORT OF LEVERAGING, MATCHING FUNDS, IDEAS? YEAH, THAT'S A GREAT QUESTION, COMMISSIONER
IT'S SOMETHING I'VE BEEN THINKING A LOT ABOUT
IT'S GREAT THAT THE IJA HAS CAPTURED OUR ATTENTION, AND IT IS A HISTORIC NEW POT OF MONEY
BUT THERE'S ALWAYS BEEN FEDERAL GRANTS
THERE ARE MANY FEDERAL PROGRAMS DOING EVERYTHING FROM ENVIRONMENTAL SUSTAINABILITY TO WORKFORCE DEVELOPMENT
AND THERE ARE MANY EXAMPLES OF TIMES THAT WE HAVE PASSED ON THOSE OPPORTUNITIES BECAUSE FEDERAL GRANTS HAS NOT BEEN A FOCUS OF OURS, THE CAPACITY THAT WE'VE HAD
AND SO I WOULD JUST EMPHASIZE AGAIN THAT ONE OF THE GREAT PARTS OF WHAT WE'RE DOING RIGHT NOW IS LEARNING HOW TO BE BETTER PREPARED FOR FEDERAL GRANTS
AND IT'S NOT JUST IH GRANTS
IT IS ALL THE FEDERAL DOLLARS THAT WE COULD POSSIBLY LEVERAGE
WE NEED TO TAKE FULL ADVANTAGE OF THAT BOTH FOR OURSELVES AND OUR COMMUNITY
SO 100%
SO I JUST WANT TO PUT A PLUG IN FOR ONE IN PARTICULAR, IT'S A VERY SMALL GRANT PROGRAM IN MARAD THAT MOST PEOPLE DON'T TAKE ADVANTAGE OF, AND THAT'S CALLED THE METAGRANTS, AND THEY'RE SPECIFICALLY FOR INNOVATION AND DECARBONISATION OR OTHER THINGS LIKE THAT WOULD BE APPROPRIATE
AND ONE OF THE REASONS I SAID THIS TO THE SEA PORT ALLIANCE AS WELL, I THINK IT'S MISSION IS FAR OUTWEIGHS ITS RESOURCES
AND I THINK IF PORTS SHOWED INTEREST IN IT, THAT WOULD HELP US BE ABLE TO GO FORTH TO CONGRESS AND SAY, FILL IT BACK UP IN A LITTLE BIT MORE GENEROUS FASHION
I KNOW THAT IT GOT AN INFUSION OF MONEY
I THINK IT WENT FROM 1 MILLION TO 10 MILLION OR SOMETHING LIKE THAT, SOMETHING IN THAT KIND OF ORDER, BUT STILL LOW AMOUNT OF MONEY
BUT ANYWAY, I JUST THROW THAT OUT THERE
IS IT CERTAINLY CONSISTENT WITH THE OTHER GRANTS YOU'RE APPLYING FOR? WE COULD MAYBE JUST TAKE A COUPLE OF PARAGRAPHS OFF OF ONE AND APPLY IT TO THE OTHER
ANYWAY, THAT'S A STANDING PROGRAM
IT'S NOT IAJA, BUT IT'S TOTALLY CONSISTENT
YEAH
I JUST WANT TO AGREE WITH YOU AGAIN, COMMISSIONER
WE SUBMITTED BOTH TO SENATOR CANTWELL STAFF AND TO REPRESENT JAYAPAL STAFF REQUEST TO INCREASE THAT TO $12 MILLION PER YEAR STARTING IN FISCAL YEAR 23
SO SOMETHING WE'RE ACTIVELY ADVOCATING FOR
EXCELLENT
THANK YOU
OKAY
WELL, I WILL JUMP IN AND SAY I AM PLEASED TO SEE THE MONEY FOR OFFSHORE WIND
I KNOW A LOT OF THE MONEY IN THIS, I THINK, WILL PROBABLY BE DEDICATED TO DEVELOPMENT OF OFFSHORE WIND ON THE EAST COAST, AND THAT'S A GREAT THING BECAUSE THEY ARE SO MUCH FURTHER ALONG IN THEIR OWN DEVELOPMENT
THERE'S A RECORD BREAKING ANNOUNCEMENT FOR THE AREA CALLED THE NEW YORK BITE
IT WAS THE LARGEST LEASE FOR FEDERAL WATERS EVER, SURPASSING OIL AND GAS
AND I THINK IT REALLY SHOWS THE WRITING ON THE WALL THAT OFFSHORE WIND IS WHERE INVESTMENT IN ENERGY IS GOING, NOT JUST GREEN ENERGY, BUT ENERGY, PERIOD
AND SO THESE KINDS OF INVESTMENTS IN THE DEVELOPMENT OF A DOMESTIC OFFSHORE WIND INDUSTRY HERE IN THE UNITED STATES, I THINK WILL BENEFIT US ON THE WEST COAST, TOO, BECAUSE SO MUCH THAT EXPERTISE WILL BEGIN TO DEVELOP THAT EXPERTISE, AND WE CAN DEPLOY IT HERE WHEN WE'RE READY
I SENT A NOTE TO EXECUTIVE DIRECTOR METRUCK AND CEO WOLF THIS MORNING REQUESTING NOT URGENTLY, BUT AS SOON AS POSSIBLE UNDERSTANDING FOR COMMISSIONER OF HOW THE PROPOSED EPA HEAVY TRANSPORTATION RULE
IS IT LIKELY TO BE APPROVED, AND IF SO, WHAT WILL THAT MEAN FOR THE SPECIFIC PROGRAMS THAT WE HAVE ALREADY ANNOUNCED WITH REGARD TO THE NORTHWEST CLEAN AIR STRATEGY OR THE M CAP, I BELIEVE WE CALL IT
AND SO PROGRAMS THAT WE HAVE BASED ON NOT HAVING A FEDERAL REGULATORY STRUCTURE AS RIGID AS THAT ONE WOULD BE WITH REGARD TO NEW CLEAN TRUCKS
SO JUST KIND OF PUTTING THAT ON THE RADAR OF OUR FEDERAL GOVERNMENT AFFAIRS TEAM, TOO, AS I THINK AN AREA WHERE WE WANT TO UNDERSTAND HOW WE'RE STRUCTURING OUR PROGRAMS SO THAT WE'RE NOT OVERLAPPING WITH SOMETHING THAT'S ALREADY GOING TO BE DONE BECAUSE OF THE FEDERAL GOVERNMENT INITIATIVE
SORRY
ONE LAST THING
JUST ANOTHER COMMENT TO SAY
I'M REALLY PLEASED TO HEAR THAT WE HAVE A PERSON ON THE HYDROGEN CLUSTER GROUP BECAUSE THERE ARE SO MANY WAYS IN WHICH HYDROGEN WILL BE OF INTEREST TO THE PORT OF SEATTLE, BOTH AS A MEANS OF REPOWERING OUR FLEETS AND TRAINS AND SHIPS AND PLANES POTENTIALLY, BUT ALSO AS A BASE FUEL THAT CAN BE CONVERTED INTO OTHER CLEAN FUELS, AND THAT WE MAY BE A PART OF A SUPPLY CHAIN THAT MANAGES FUTURE HYDROGEN SUPPLIES
SO I'M REALLY GLAD TO HEAR THAT
I THINK IT'S WELL WORTH OUR TIME TO DEVELOP SOME EXPERTISE IN HOUSE ON WHERE THE HYDROGEN ECONOMY IS GOING
SO, ERIC, SORRY ABOUT THAT
I CUT YOU OFF
NO, NOT AT ALL
WELL, I JUST WANTED TO AYE
TWO VERY QUICK POINTS, COMMISSIONER, FIRST OF ALL, ON THE HYDROGEN POINT, SO MUCH INTEREST, OBVIOUSLY, OUR ENGAGEMENT WITH THE STATE COALITION THAT WILL APPLY FOR THESE FUNDS TO BECOME A REGIONAL HYDROGEN HUB
BUT WE'VE HAD SOME GREAT OPPORTUNITIES TO ENGAGE BOTH WITH REPRESENTATIVE DEL BENNET, BUT ALSO SENATOR CORNINE'S OFFICE OUT OF TEXAS, A LOT OF INTEREST IN A HYDROGEN FOR PORTS BILL THAT WOULD SPECIFICALLY FOCUS ON THAT
AND ALSO ALWAYS LIKE TO REMIND SOME OF OUR ELECTED OFFICIALS IN DC THAT THERE'S AN OPPORTUNITY ON THE AVIATION SIDE AS WELL, LONG TERM FOR AVIATION HYDROGEN FUELS ON THE TRUCKING PIECE, I WILL JUST SAY, SINCE BOTH YOU AND COMMISSIONER MOHAMED BROUGHT IT UP, ONE OF THE BEST THINGS ABOUT THE SUPPLY CHAIN CRISIS THAT'S GOING ON AT OUR PORTS THESE DAYS IS IT HAS BROUGHT AN INCREDIBLE RECOGNITION OF THE IMPORTANCE OF TRUCKING IN ALL OF ITS ASPECTS
AND SECRETARY BUTTIGIEG HAS RELEASED A TRUCKING STRATEGY
AND A LOT OF THAT HAS TO DO WITH IMPROVING WORKING CONDITIONS FOR TRUCKERS WORKFORCE DEVELOPMENT FOR THE TRUCKING COMMUNITY
AND, OF COURSE, ALL OF THESE ASPECTS RELATED TO SUSTAINABILITY FOR THE TRUCKING INDUSTRY
SO I THINK THERE'S FUNDING OPPORTUNITIES THERE, THERE'S REGULATORY OPPORTUNITIES THERE
AND AS I'VE SAID TO COMMISSIONER MOHAMED A FEW TIMES, I THINK WE ARE CLOSE TO A POINT WHERE IT WILL MAKE SENSE TO HAVE A CONVERSATION WITH THE BY ADMINISTRATION ABOUT THE WORK THAT WE'VE DONE, ABOUT THE WORK THAT'S TAKING PLACE IN WASHINGTON STATE AND SEE WHERE THERE ARE OPPORTUNITIES FOR PARTNERSHIP AND COLLABORATION SPECIFICALLY ON THIS TOPIC
SO WE'LL KEEP YOU IN THE LOOP WHEN THE RIGHT OPPORTUNITY AND THE RIGHT TIME COMES FORWARD
THERE HERE
WELL, TERRIFIC
OKAY
THANK YOU ALL
I KNOW IT HAS BEEN A LONG MEETING
WE ACCOMPLISHED A LOT TODAY
THAT DOES CONCLUDE OUR SCHEDULED BUSINESS ITEMS THANK YOU AGAIN TO ERIC AND MELISSA FOR THE FINAL PRESENTATION AND FOR HANGING ON ALL THE WAY THROUGH TO THE END
WE ALWAYS SEEM TO PUT SHINFELD AT THE END, BUT WITH THAT, I WANT TO GO AROUND ONE MORE TIME FOR QUESTIONS ON REFERRAL TO COMMITTEE AND CLOSING COMMENTS
SO IF CLERK HART COULD CALL THE ROLL
YES
BEGINNING WITH COMMISSIONER MOHAMED
NO ITEMS IS IT THE COMMITTEE ITEMS OR DID YOU SAY CLOSING COMMENTS AS WELL? SORRY BOTH
YEAH
NO COMMITTEE ITEMS BUT I WILL JUST SAY AS CLOSING COMMENTS HAPPY INTERNATIONAL WOMEN'S DAY AND TO ALL THE WOMEN WHO ARE ON THIS CALL WHO WORKED AT THE PORT WE SEE YOU
WE APPRECIATE YOU AND WE WILL BE CELEBRATING YOU THROUGHOUT THIS MONTH
THANK YOU, COMMISSIONER
COMMISSIONER HASEGAWA NO COMMENTS, NO REFERRALS
THANK YOU
THANK YOU, COMMISSIONER FELLEMAN
NONE FOR ME EITHER
THANK YOU, COMMISSIONER CHO
NOTHING FOR ME
THANK YOU
THANK YOU
COMMISSIONER CALKINS
I WSDOT INTENTIONAL ABOUT WEARING MY PURPLE TIE TODAY AND THEN I FORGOT TO PUT IT ON UNTIL THE LAST HALF HOUR
I KNOW STEVE IS WEARING AYE
PURPLE SURETY AS WELL IN COMMEMORATION OF INTERNATIONAL WOMEN'S DAY
WE ARE HAPPY AND THRILLED TO CELEBRATE IT
AND MY DAUGHTER JANE LOVES SEEING THE PURPLE TIE THIS MORNING TOO
IT'S HER FAVORITE COLOR TO THAT FUTURE WOMAN WHO WILL CELEBRATE AS WELL
ALL RIGHT, PAUL, I'M GOING TO TURN OVER TO EXECUTIVE DIRECTOR METRUCK FOR ANY CLOSING COMMENTS
THANKS COMMISSIONERS
WE COVERED A LOT OF GROUND TODAY AND I DEEPLY APPRECIATE THAT
LET ME NOTE ON THE PFA I KNOW THERE ARE SOME QUESTIONS ABOUT THAT SO I INTEND TO GO BACK, COLLECT THE INFORMATION, PROBABLY PRODUCE A DOCUMENT FOR ALL THE COMMISSIONERS ANSWERING QUESTIONS AND I THINK WE'VE GOT THOSE ALREADY
AND SCHEDULE TIME EITHER AN EXECUTIVE SESSION OR IN A BRIEFING FOR THE COMMISSIONER ON THAT
SO WE'LL DO FOLLOW UP ON THAT
I JUST WANTED TO TELL YOU RIGHT NOW WE'RE GOING TO BE GIVING YOU ADDITIONAL FOLLOW UP ON THE HUMAN HEALTH IMPACTS PARTICULARLY IN AVIATION TO THE FIREFIGHTERS IN THE COMMUNITY
GREAT
THANK YOU SO MUCH
ALL RIGHT, EVERYBODY, WITH HEARING NO FURTHER COMMENTS AND HAVING NO FURTHER BUSINESS, IF THERE IS NO OBJECTION, WE ARE ADJOURNED AT 04:10 P.M.
ENJOY THE REST OF THE DAY
THANK YOU
BYE BYE
THANK YOU ALL.

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