7c. Motion 2020-06 - Recovery
Item Number: _____7c___ Meeting Date: April 1, 2020 1 2 3 4 MOTION 2020-06: 5 A MOTION OF THE PORT OF SEATTLE COMMISSION 6 7 to provide guidance for Port leadership in prioritizing 8 Port investments to assist local, regional, and 9 statewide economic recovery from the COVID-19 10 pandemic. 11 12 PROPOSED 13 APRIL 1, 2020 14 15 INTRODUCTION 16 The COVID-19 global pandemic is an unprecedented public health emergency that impacts the 17 lives of every local resident and is causing incalculable economic and human costs. The Port of 18 Seattle's number one priority is keeping employees, tenants, concessionaires, contractors, 19 customers, travelers and residents safe. 20 21 The Commission extends its thanks to the public health officials, first responders, and elected 22 leaders who are helping our region navigate this crisis, and to the Port employees, tenants and 23 associated businesses and front-line workers who are focused on keeping the Port operational 24 during this challenging time. The functional continuity and operations of the Port are vital to 25 preventing greater disruption in the current emergency conditions Ensuring the protection of 26 public health and safety while maintaining operations is essential. The Port an over 100-year- 27 old organization, is resilient, and every day is a demonstration of its commitment to the 28 residents of King County, the businesses and workers who rely on it, and the global travel and 29 trade supply chains that depend on it. 30 31 Once this global crisis ends, the Port of Seattle is uniquely positioned to be one of the leading 32 public agencies to help drive the recovery efforts. The Port of Seattle's mission is to promote 33 economic opportunities and quality of life in the region by advancing trade, travel, commerce, 34 and job creation in an equitable, accountable, and environmentally responsible manner. We are 35 committed to sustaining and creating living-wage jobs, preserving the maritime sector and 36 industrial lands that serve our seaport and airport facilities, supporting small and disadvantaged 37 businesses, workforce development, tourism and economic development. 38 39 The Port commits to values of equity, justice and inclusion in the COVID-19 crisis response, 40 from immediate response to longer-term recovery. In developing recovery plans, the Port will 41 ensure that principles of equity, justice, inclusion, transparency, and accountability are 42 embraced. The Port will engage communities who are most impacted to understand their 43 needs. 44 Motion 2020-XX, Guidance on Port investments post-COVID-19 Page 1 of 5 45 In response to the extraordinary circumstances posed by the COVID-19 crisis, the Port's relief 46 and recovery effort will focus on restoring, sustaining and maximizing our aviation and 47 maritime operations. These operations will play a critical role in the economic recovery of the 48 Puget Sound region and the state of Washington. The financial sustainability of Port, 49 responsible fiscal stewardship and public accountability should inform these efforts. Planning 50 for the recovery efforts, both short-term and long-term, needs to start now and we must 51 ensure these efforts are equitable, inclusive and environmentally sustainable. 52 53 TEXT OF THE MOTION 54 55 The Port of Seattle Commission hereby adopts the following principles to support and guide the 56 Executive Director's evaluation and prioritization of recovery actions to restore, sustain and 57 maximize our aviation and maritime operations in response to the COVID-19 pandemic and 58 ensure swift regional economic recovery. The Port shall consider its fiscal, legal, and equity 59 responsibilities in all decisions made when applying these principles. 60 61 Port Employees and Partners 62 To mitigate impacts of this pandemic on the Port's workforce and its partners, the Executive 63 Director shall consider the following principles when making decisions: 64 65 Port Employee health, safety and wellbeing: The Port shall continue to protect the health, 66 safety and well-being of our employees and will maximize teleworking policies and leave 67 policies, as appropriate based on public health guidance. 68 69 Keep Port employees working: The Executive Director shall consider steps to keep our 70 workforce employed such as deferring hiring of new and replacement positions, flexible 71 leave without pay options, and reduced hours over reduction in the workforce. In addition, 72 the Executive Director shall determine whether new skill-building and educational resources 73 for employees are necessary to transition employees to new career pathways. The 74 Executive Director shall take into consideration the Port's represented employees and their 75 unique needs. 76 77 Youth employment: The Executive Director shall offer youth internships to provide to the 78 extent possible a short-term boost to the economy, support the most vulnerable and 79 underserved communities, and continue its strategic investment in the Port's workforce of 80 the future. Where possible, the Port should consider youth whose parents have lost 81 employment as a result of the COVID-19 pandemic. 82 83 Federal, state and regional recovery coordination: The Port shall collaborate with the 84 Federal government, Washington State, King County, City of Seattle and other regional 85 institutions to develop and implement a coordinated plan for long-term economic recovery. 86 The Executive Director will work to identify federal and state programs that benefit the 87 Port's business partners, and support their efforts to apply for and/or otherwise take 88 advantage of these resources. Motion 2020-XX, Guidance on Port investments post-COVID-19 Page 2 of 5 89 90 Tenants and concessionaires: The Port has a strong interest in supporting the economic 91 vitality of its business partners so that they may produce revenue for the Port, provide 92 service to Port customers, and generate jobs. This will be a key element of the recovery. 93 94 The Executive Director may consider proposing adjusted agreement terms in a manner that 95 serves the financial interests of both the Port and its tenants and concessionaires. The 96 Executive Director shall, in light of Port finances and to the extent permitted by applicable 97 law, consider prioritizing: 98 99 o Businesses that are directly impacted by the COVID-19 pandemic and the restrictions 100 that have been implemented to address it; 101 o Businesses that can commit to being available to provide services and generate 102 revenue; 103 o Businesses who are not otherwise eligible for significant state or federal economic 104 relief; 105 o Small and diverse businesses; 106 o Independent contractors, hourly-wage workers, "gig workers", and artists and craftsman 107 who do not otherwise have access to basic economic safety nets; and 108 o Non-profit organizations and not-for-profit tenants. 109 110 Capital Programs 111 The Executive Director shall evaluate project assumptions for all capital projects approved prior 112 to the COVID-19 pandemic. These projects sh all be evaluated if assumptions on demand for 113 Port facilities, industry trends, and consumer habits have changed. The Executive Director shall 114 determine which projects shall be postponed, accelerated or phased, and consider the 115 following principles when making decisions about these short-term and long-term capital 116 investments and major capital maintenance projects: 117 118 Maximize economic impact: Prioritize projects that generate significant economic activity 119 not only construction-related employment and spend, but also projects that, once 120 completed, will facilitate key drivers of regional economic activity such as trade, fishing, 121 tourism and travel. This shall include considerations for projects that facilitate a rapid 122 recovery and accelerate employment opportunities, and reduce our capital construction 123 costs in the face of reduced market demand. 124 125 Diversity in Contracting: Prioritize capital programs that have high utilization rates for 126 woman and minority owned businesses consistent with the Diversity in Contracting Policy 127 Directive. 128 129 Small Business Enterprises: Prioritize projects that provide opportunities for small business. 130 131 Environmental Sustainability Goals: Prioritize actions that support attainment of Century 132 Agenda goals for greenhouse gas and air emission reductions, habitat stewardship and Motion 2020-XX, Guidance on Port investments post-COVID-19 Page 3 of 5 133 enhancing the environmental features of capital projects, particularly projects or 134 operational decisions that utilize the Sustainable Evaluation Framework. 135 136 Economic Development and Community Investment Programs 137 The Executive Director shall consider the following principles when making decisions about 138 economic development and community investment programs: 139 140 Existing Grant and Community Benefit Programs: Prioritize community investments using 141 existing programs such as the Economic Development Partnership Program, Tourism 142 Marketing Support Program, Duwamish Valley Community Equity Program, the South King 143 County Fund and others. 144 145 Partnerships to Maximize Funding Impact: Identify partnerships and coordinate efforts to 146 create multiplier effects of Port funding. For example, the Executive Director can leverage 147 Washington Department of Commerce economic recovery investments that create near- 148 term economic activity; expand on regional transportation investments that support the 149 region's trade and travel needs; leverage city and statewide tourism promotional programs; 150 and address long-term infrastructure needs. 151 152 Reporting Timelines 153 The Executive Director shall deliver to the Commission by April 28 , 2020, a draft early action 154 recovery plan with recommendations and options outlining how the principles will be applied 155 to Port investments. By December 31, 2020, the Executive Director will update the Commission 156 on recovery implementation efforts and continue to provide updates on a quarterly basis 157 throughout 2021. The Executive Director shall compile and report on lessons learned to 158 incorporate innovative and new ways of doing business and report in the first quarter of 2021. 159 160 STATEMENT IN SUPPORT OF THE MOTION 161 The Port of Seattle is a major regional economic driver. It owns and operates vital 162 transportation infrastructure necessary to facilitate recovery across the state. Sea-Tac 163 International Airport (SEA) is the largest transportation hub in the five-state region with over 51 164 million passengers annually. With a regional economic impact of more than $22.5 billion in 165 business revenue, SEA generates more than 151,400 jobs (87,300 direct jobs), representing 166 over $3.6 billion in direct earnings and more than $442 million in state and local taxes. 167 168 The Port and The Northwest Seaport Alliance (NWSA) operate the 4th largest gateway in the 169 country serving farmers, manufacturers, retailers and service providers throughout Washington 170 and is a critical part of the supply chain. Our Maritime facilities, including cargo, cruise and 171 fishing operations, support over 20,000 employees including our terminal operators, longshore 172 workers, steamship agents and freight forwarders, trucking companies and railroads moving 173 cargo to and from terminals. NWSA Marine Cargo generates almost $6 billion dollars in 174 business output across Washington state. In addition, our cruise operation supports 5,500 jobs 175 and a full cruise season generates nearly $900 million in economic activity. 176 Motion 2020-XX, Guidance on Port investments post-COVID-19 Page 4 of 5 177 Because of those roles, the Port of Seattle Commission is focused on the Port's responsibility to 178 plan strategically and proactively for how to help our region during this crisis and guide its 179 recovery once it is over. As a public agency that provides essential services to facilitate our 180 economy, the Port is uniquely positioned to be a key driver of economic recovery. The Port's 181 roles in the transportation of people and goods, economic development, tourism promotion, 182 workforce development, trade and travel facilitation, environmental remediation, youth 183 employment and equitable inclusion are all essential tools that are needed to help workers, 184 businesses, local residents and the overall economy. It is also in the Port and regions financial 185 interest to keep tenants operating in both the maritime and aviation sector. 186 187 Just as important as the Port's role to help the economy revive will be its focus on rebuilding 188 the economy equitably, in an environmentally sustainable manner, across King County and the 189 region. 190 191 Prioritization of investments is critical in the upcoming months and those decisions must be 192 made in alignment with the Port's mission, values and goals; thismotion is the beginning of 193 that process, with an acknowledgement that additional guidance will be required on a regular 194 basis and reviewed on a case-by-case basis. 195 196 As the Port changes the way we do business and innovates to meet this challenge, the Port will 197 look at ways to incorporate these new approaches into doing business for the long-term benefit 198 of our employees and the region. Motion 2020-XX, Guidance on Port investments post-COVID-19 Page 5 of 5
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