The Study Session meeting scheduled for 2020-09-22 at Remote

Transcript

The Study Session meeting scheduled for 2020-09-22 at Remote

COMMISSION PRESIDENT IF I COULD JUST POP IN REAL QUICK
THIS IS MICHELLE HART, COMMISSION CLERK
I WANT TO GO AHEAD AND JUST DO A FORMAL ROLE FOR US IF WE COULD? PLEASE DO THAT, MICHELLE
I'M SORRY
I SKIPPED PAST
YOU ARE FINE
WE DID GET PEOPLE WHEN THEY WERE COMING ON
I JUST WANT TO NOTE IT FOR THE RECORD
BEGINNING WITH COMMISSIONER BOWMAN
COMMISSIONER BOWMAN
I'M SORRY? OKAY COMMISSIONER CALKINS? HERE
COMMISSION CHO? PRESENT.
THANK YOU
COMMISSIONER FELLEMAN
PRESENT
THANK YOU
COMMISSIONER STEINBREUCK
PRESENT
AND COMMISSIONER BOWMAN? PRESENT AGAIN
THANK YOU
CLERK HART, WILL YOU PLEASE GO OVER THE GROUND RULES FOR THIS MEETING
WE WILL UNMUTE ALL COMMISSIONERS ON THE LINE
STAFF WILL PRESENT TO YOU IN VIDEO FORMAT AND WE'LL BREAK FOR COMMENTS OR QUESTIONS
LAUREN AND I WILL ALSO BE MONITORING THE CHAT BOX AND ENCOURAGE COMMISSIONERS TO USE IT TO LET US KNOW WHEN YOU DO WANT TO HAVE A QUESTION SO THAT WE CAN QUEUE YOU UP IN THE ORDER YOU'VE REQUESTED TO SPEAK
TODAY'S STUDY SESSION IS BEING RECORDED AS NOTED BY THE COMMISSION PRESIDENT AND BROADCAST TO THE VIEWING PUBLIC AND WILL BE ON DEMAND SHORTLY AFTER THE MEETING CONCLUDES
IT IS A WORKING SESSION FOR THE COMMISSION TODAY
AND THEREFORE WE DO NOT HAVE A PUBLIC COMMENT AT THIS MORNING SESSION
THANK YOU
AND I THINK I SHOULD ADD THAT THE CHAT BOX IS REALLY INTENDED JUST FOR MECHANICS AND TECHNICAL ISSUES AND NOT FOR POLICY DISCUSSION PURPOSES, WHICH SHOULD GO BEFORE THE ENTIRE AUDIENCE HERE
THANK YOU
OKAY WITH THAT, LET'S GET STARTED
DIRECTOR METRUCK, GOOD MORNING
GOOD MORNING PRESIDENT STEINBREUCK AND THANK YOU COMMISSIONERS FOR MAKING TIME TODAY FOR THIS IMPORTANT ISSUE
I KNOW WE HAVE A FULL DAY SO I REALLY APPRECIATE YOU TAKING TIME ON THIS IMPORTANT SUBJECT
BY FAR THE PORT OF SEATTLE'S LARGEST INVESTMENTS IN CRITICAL INFRASTRUCTURE ARE AT OUR AIRPORT
OVER THE NEXT FIVE YEARS WE'RE PLANNING TO SPEND ABOUT 3.3 BILLION ON A HUNDRED AND FORTY-ONE PROJECTS TO ENSURE SEA CONTINUES TO OPERATE SAFELY AND EFFICIENTLY MEETING OUR REGULATORY, ENVIRONMENTAL, AND COMMUNITY RESPONSIBILITIES
IN THE COVID-19 ERA, PROTECTING THE HEALTH AND SAFETY OF EVERYONE AT THE AIRPORT IS OUR TOP PRIORITY
NOW MORE THAN EVER, WE NEED TO TAKE THE LONG VIEW ABOUT A NEEDS FOR THE AIRPORT'S IMPROVEMENTS AND THE AIRPORT'S TREMENDOUS VALUE TO THE ECONOMY OF THE REGION AND THE STATE
IN THESE TOUGH TIMES, OUR AIRLINE PARTNERS ARE ADVOCATING FOR INVESTMENTS TO MEET THE NEEDS OF THE FUTURE AS WELL
SEATTLE-TACOMA INTERNATIONAL AIRPORT IS VITAL TO OUR RECOVERY AND THE RECOVERY FOR THE REGION
WE ACKNOWLEDGE THAT THERE'S GREAT UNCERTAINTY ABOUT HOW QUICKLY THE INDUSTRY WILL RECOVE.R OUR FORCASTS ARE BASED ON THE BEST INFORMATION AVAILABLE, BUT THOSE ARE ONLY FORECASTS SO WE MUST PROCEED RESPONSIBLY AND BE PREPARED TO ADJUST DEPENDING ON THE FACTS AND THAT'S SOMETHING THAT LANCE LITTLE AND HIS TEAM ARE DOING
WE LOOK FORWARD TO CONTINUING THE CONVERSATION WITH COMMISSION ABOUT THESE VITAL INVESTMENTS FOR OUR COMMUNITY
I'LL NOW TURN THE PRESENTATION OVER TO LANCE LITTLE, MANAGING DIRECTOR AVIATION
LANCE
GOOD MORNING, EVERYONE
THANK YOU STEVE
GOOD MORNING COMMISSIONERS
CAN EVERYONE HEAR ME? GOOD MORNING LANCE
COMMISSIONERS, THANK YOU AND STEVE THANKS FOR GIVING US THE OPPORTUNITY TO PRESENT THE CIP THIS MORNING
I HAVE CARRIE STEVENS, BORGEN ANDERSON, AND JENNIFER BROWN WHO WILL BE PRESENTING WITH ME TODAY
AS COMMISSIONER STEINBREUCK SAID, WE'RE GLAD FOR THE OPPORTUNITY TO PROVIDE AN OVERVIEW OF THE CIP, TALK A LITTLE BIT ABOUT THE CIP PROCESS, HOW WE PRIORITIZE OUR PROJECTS IN THE CIP, ALSO HOW THE CIP IS FUNDED AND HOW WE TRIGGER PROJECTS MEANING HOW WE DETERMINE WHETHER A PROJECT IS ACCELERATED DELAYED CANCELED ETC
WE'RE ALSO GOING TO SPEAK TO SEVERAL WHAT WE CALL [INAUDIBLE] PROJECTS
THESE PROJECTS ARE VERY IMPORTANT THEY MAKE UP ABOUT 75% OF THE ENTIRE CIP
AND SO WE'RE GOING TO SPEAK ABOUT THOSE AND SOME PROJECTS THAT ARE OF INTEREST TO COMMISSIONERS AND TO THE AIRLINES AS WELL
AND FINALLY, WE'RE GOING TO SPEAK ABOUT THE PEER REVIEW RECOMMENDATION THAT WAS MADE LAST YEAR
OUR INTENTION WAS TO HAVE THE PEER-REVIEW RECOMMENDATION IMPLEMENTED BY THE FIRST QUARTER OF THIS YEAR
HOWEVER, COVID HAPPEN AND THAT DELAYED EVERYTHING
BUT I THINK IT'S IMPORTANT THAT WE ALSO SPEAK ABOUT THE PEER REVIEW RECOMMENDATION AND HOW THAT IS ALIGNED WITH OUR SUPPORT CIP AS WELL
BUT BEFORE WE GET STARTED COMMISSION , I REALLY WANTED TO TALK ABOUT THE VISION
THE CIP IS REALLY A MEANS TO AN END
THE PROJECTS IN THE CIP ARE A MEANS TO AN END
AND THE END, IT IS THE VISION THAT WE HAVE FOR THE AIRPORT
AND WE REALLY WANT TO PROVIDE OR SHOW YOU WHAT WE HAVE IN VISION AND TO GET YOUR FEEDBACK, TO GET COMMISSION GUIDANCE ON WHAT THIS AIRPORT SHOULD LOOK AND FEEL LIKE OVER THE NEXT 10 TO 20 YEARS
AND THEY SAY A PICTURE SAYS A THOUSAND WORDS, VIDEO PROBABLY SAYS ABOUT TEN THOUSAND WORDS
SO WE HAVE A VIDEO THAT WE WANT TO SHOW, AT LEAST THREE VIDEOS, THAT WE'RE GOING TO SHOW
SHORT VIDEOS
THEY ARE STILL IN DRAFT AND NOT COMPLETED THOUGHT IT WAS IMPORTANT TO AT LEAST SHOW WHAT THEY DRAFTED SO WE CAN GET EARLY FEEDBACK FROM YOU GUYS
ONCE WE'RE FINISHED, WE'LL HAVE A LONG VERSION OF THE VIDEO [INAUDIBLE] THEN WE HAVE A SHORTER VERSION THAT WOULD BE CONSOLIDATED FOR PUBLIC CONSUMPTION
WAITING FOR THE VIDEO TO GET ON THIS SCREEN HERE
YES, AND I WILL WARN YOU THAT IT'LL MUTE
EVERYBODY WANTS THE POWERPOINT GETS UP WITH THE VIDEOS
SO JUST BE PATIENT
RIGHT AND THE PURPOSE OF SHOWING THE BIGGER
COMMISSION, I THINK IT'S IMPORTANT TO UNDERSTAND THAT WHEN WE COME TO YOU WITH VARIOUS DIFFERENT PROJECTS FROM THE CIP OR FROM THE NEAR TERM PROJECTS THAT ARE IN THE MASTER PLAN I THINK IT'S IMPORTANT TO UNDERSTAND THAT THESE ARE NOT JUST AD HOC PROJECTS
THEY ARE REALLY PART OF A WELL THOUGHT OUT STRATEGY AND VISION THAT WE HAVE
AND I THINK THE ANALOGY I WOULD SAY IS IF YOU GO TO PURCHASE A PUZZLE YOU LOOK AT THE BOX AND YOU SEE WHAT THE PUZZLE LOOKS LIKE AT THE END AND THEN YOU START PUTTING THE PIECES OF THE PUZZLE TOGETHER
SO WHAT WE WANT TO SHOW IN THIS VIDEO IS ACTUALLY WHAT THE PICTURE ON THAT BOX LOOKS LIKE AND THEN THE CIP ARE THE PIECES AND THE PROJECTS IN THE NEAR TERM [INAUDIBLE] IN THE MASTER PLAN ARE THE PIECES THAT WORK TOGETHER TO REALIZE THIS VISION
AND THE OBJECTIVE IS TO GET TO A FACILITY OR OTHER FACILITY IN THE AIRPORT THAT WILL LEAVE WE CALL A LEVEL OF SERVICE OPTIMAL
YOU GUYS HAVE HEARD ME SPEAK ABOUT THAT ON MULTIPLE OCCASIONS
WE HAVE LOOKED AT THE AIRPORT IN ITS ENTIRETY FROM THE NORTH END OF THE AIRPORT ALL THE WAY THROUGH TO THE SOUTH END AND DETERMINE WHAT IS IT THAT WE NEED TO DO TO MAKE THIS ENTIRE AIRPORT A WORK FAST FACILITY
AND IT'S TAKEN LONG TO GET THERE
IS IT STILL LOADING? IT IS
IT'S SLOW BUT I PROMISE THE QUALITY WILL BE GOOD
THIS WAY TAKES A LITTLE LONGER TO GET UP GOING THIS ROUTE, BUT IT'LL BE A MUCH MORE PLEASANT EXPERIENCE
OKAY
AND COMMISSIONER AS I SAID, WE'RE GOING TO DO A WALK-THROUGH OF THREE DIFFERENT APPROACHES COMING IN FROM THE NORTH END OF THE AIRPORT GOING THROUGH FROM THE CHECK POINT FIVE END, ALASKA END, GOING THROUGH CHECKPOINT THREE, GOING ALL THE WAY OVER TO THE NORTH SATELLITE
YOU'RE GOING TO SEE WHAT THE AIRPORT LOOKS LIKE COMING IN FROM THE SOUTH END GOING INTO THE NEW CHECKPOINT ONE, AND GOING TO THE NEW SOUTH SATELLITE AS WE ENVISION IT
YOU'RE ALSO GOING TO SEE WHAT THE AIRPORT LOOKS LIKE COMING IN ON AN INTERNATIONAL FLIGHT THROUGH THE NEW INTERNATIONAL ARRIVALS FACILITY, GOING OVER TO THE PARKING GARAGE, GOING THROUGH OUR NEW GROUND TRANSPORTATION CENTER, AND DRIVING ON THE NEW BUS GUIDE, ALL THE WAY OVER TO THE NEW PROPOSED WHAT WE CAN CALL IT T2, OR THE NEW NORTH TERMINAL THAT WILL BE BUILT AS PART OF THE THE EVENTUAL MASTER PLAN
DO WE HAVE THE VIDEO NOW? YES, CAN YOU SEE IT? YES
LANCE, UNMUTE YOURSELF
OKAY, CAN YOU HEAR ME NOW? YES
OKAY
SO THIS IS AS I SAID, WE'VE LOOKED AT THE AIRPORT IN ITS ENTIRETY FROM THE NORTH END OF THE AIRPORT ALL THE WAY TO THE SOUTH END INCLUDING LANDSCAPING, THE NEW TERMINAL, THE NORTH SATELLITE, SOUTH SATELLITE, THE NEW GROUND TRANSPORTATION CENTER, ALL THE ROADWAY IMPROVEMENTS THAT ARE GOING TO BE NEEDED, THE C1 THAT WE'RE GOING TO TALK ABOUT A LITTLE BIT, THE NEW INTERNATIONAL ARRIVALS FACILITY, AND THE SOME SATELLITE FACILITY
SO WE HAVE LOOKED AT WHAT IS IT THAT WE NEED TO DO IN THIS ENTIRE AIRPORT FACILITY THAT WE HAVE, OUTSIDE AND INSIDE THE FACILITY, TO GET US TO THAT LEVEL OF SERVICE OPTIMAL THAT WE STRIVE FOR
AND NO NEED TO PAUSE
WE'LL JUST GO AHEAD
SO ONE OF THE FIRST THING YOU'LL NOTICE IS A MONUMENT SIGN
RIGHT, THE SIGNS THAT WE HAVE RIGHT NOW ARE REALLY OUTDATED AND THE MONUMENT SIGN WILL ACTUALLY REFLECT THE NEW LOGO THAT WE HAVE FOR A NEW BRAND, OUR SEA BRAND
YOU'LL NOTICE ALSO THE LANDSCAPE AND WE'LL TELL YOU MORE ABOUT THAT
ALSO THE NEW ROADWAY SIGNS COMING INTO THE AIRPORT AND WHAT YOU'RE LOOKING AT HERE IS WHERE THE NEW GROUND TRANSPORTATION CENTER WILL BE
SO COMING ON THE LIGHT RAIL, RATHER THAN GOING THROUGH THE GARAGE, YOU'LL BE IN THIS REALLY NICE GROUND TRANSPORTATION FACILITY
SO THIS WILL BE A TOTALLY DIFFERENT EXPERIENCE FOR PEOPLE COMING INTO THE AIRPORT COMING FROM GROUND TRANSPORTATION
AND THE GROUND TRANSPORTATION CENTER WILL HAVE CONCESSIONS IN IT WILL HAVE ALSO HAVE THE OFFICE SPACES
WE PLAN TO CONSOLIDATE A LOT OF THE DECENTRALIZED OFFICE LOCATIONS
FROM THE PASSENGER PERSPECTIVE, THEY WILL FID, OR FLIGHT INFORMATION DISPLAY, AND IF YOU'RE COMING FROM THE THIRD FLOOR FROM A TAXI OR LIMOUSINE, YOU CAN COME UP INTO THIS NEW GROUND TRANSPORTATION CENTER
AS I SAID BEFORE, WE'LL HAVE AIRPORT DINING AND RETAIL
YOU'LL ALSO HAVE KIOSKS IN THIS FACILITY
SO YOU'LL BE ABLE TO DO CHECK IN
SO THIS IS A PATH THAT YOU ARE GOING TO TAKE FROM LIGHT RAIL COMING OVER TO THE GARAGE WHICH IS CURRENTLY UNCONDITIONED
SO THIS IS GOING TO BE CONDITIONED SPACE
WE'RE ALSO GOING TO BE CREATING A GARAGE PLAZA WHERE THE GARAGE [INAUDIBLE[ THE TERMINAL ITSELF WITH MOVING SIDEWALKS [INAUDIBLE] OVER AND OVER AGAIN
[INAUDIBLE] IMPORTANT THAT IS SO THERE'LL BE MOVING SIDEWALKS THAT TAKE YOU OVER SO THAT PEOPLE DO NOT HAVE IT TO WALK
THE GARAGE, LANCE? I'M SORRY
I'M SO SORRY TO INTERRUPT
I'M NOT SEEING ANYTHING
I'M SEEING MICHELLE'S WRITING ME
I'M NOT SEEING ANY VIDEO OR ANY SLIDES
MICHELLE, IS THERE SOMETHING I SHOULD BE DOING? I APOLOGIZE
YOU CAN KEEP TALKING
I JUST CAN'T SEE ANYTHING
SO IS EVERYBODY HAS NOT SEING ANYTHING? I CAN SEE IT VERY WELL, YES
I'M GETTING VIDEO
I'LL LEAVE THE MEETING AND COME BACK
ALRIGHT
WHILE WE'RE STOPPED, IS THERE ANY WAY TO LOWER THE MUSIC AND INCREASE LANCE'S VOLUME? AS LONG AS WE STOPPED, JUST WANTED TO MENTION THAT
I CAN TURN THE VOLUME OFF OF THE VIDEO IF THAT'S PREFERRED
AND THEN STEPHANIE, ARE YOU STILL ON WITH US OR DID YOU HOP OFF ALREADY? OKAY
LANCE CAN YOU REMIND ME WHERE WE WERE AT IN THE VIDEO? WE JUST ENTERED THE PARKING GARAGE
RIGHT HERE WHERE I'M GOING TO SHOW WHERE WE HAVE PARKING
YEAH, WE CAN START BACK HERE AND I'LL CATCH UP
LIKE I SAID, WE'LL HAVE MOVING SIDEWALKS IN THIS FACILITY TO REDUCE THE AMOUNT OF TIME PEOPLE HAVE TO WALK
PARKING GARAGES WILL HAVE ELECTRIC CHARGING STATIONS ON EVERY FLOOR EXCEPT THE THIRD FLOOR, AND OF COURSE WITHOUT PARKING LOCATION SYSTEM WHERE OUR PASSENGERS WILL BE ABLE TO EASILY FIND AND LOCATE A PARKING SPACE WITHOUT HAVING TO SEARCH
THE GARAGE PLAZA AREA WILL LOOK AND FEEL VERY SIMILAR TO THE TERMINAL VERSUS THE POURED CONCRETE [INAUDIBLE] CHECK-IN KIOSK EVEN BEFORE YOU GET INTO THE TERMINAL BUILDING ITSELF
PROBABLY LET'S PAUSE RIGHT HERE
I WANT TO TALK A LITTLE BIT ABOUT THE ACCESSIBILITY IMPROVEMENTS THAT WE'RE GOING TO HAVE ON THE LOWER DRIVES COMING IN
IN THE ENTIRE LOWER DRIVE IS BASICALLY GOING TO BE WHAT WE CALL ZERO CURB MEANING THERE IS NO LEDGE
SO THE ENTIRE LOWER CURVE IS GOING TO BE ADA ACCESSIBLE AND ON THE UPPER DRIVE WILL HAVE ADA-ACCESSIBLE POINTS EVERY 50 FEET
ACCESSIBILITY IS A MAJOR COMPONTENT OF THE VISION THAT WE HAVE HERE AS WE HAVE BEEN GIVEN THE DIRECTION TO BE THE MOST ACCESSIBLE AIRPORT IN WORLD AND THAT'S WHAT WE'RE TRYING TO DO
WE CAN CONTINUE
GO AHEAD, CONTINUE
OKAY
SO THIS IS A DEPICTION OF WHAT WE EXPECT THE ZONE 617 OCCUPIED BY ALASKA SHOULD LOOK
LIKE WE'RE GOING TO TALK ABOUT THAT PROJECT AS WELL
AND AS YOU MOVE FROM ZONE 617 DOWN TO THE CHECKPOINT THREE, WE'RE GOING TO EXPAND CHECKPOINT 3 SO WE CAN HAVE MORE THROUGHPUT, MORE EFFICIENCY WE'LL USE THE LATEST TECHNOLOGY THAT'S APPROVED BY THE TSA AT NOT ONLY THIS CHECKPOINT, BUT PRETTY MUCH ALL THE CHECKPOINTS THAT WE HAVE AT THE AIRPORT
BUT FOR THIS PATH, WE'RE GOING THROUGH CHECKPOINT THREE, ONCE YOU GET TO THE CHECKPOINT 3, BY THIS TIME THE CENTRAL TERMINAL NORTH END OF THE AIRPORT DINING AND RETAIL PROGRAM SHOULD BE COMPLETED
DID YOU PAUSE IT? I DID NOT
APPARENTLY SOME PEOPLE ARE STILL GETTING MUSIC
SO, YOU KNOW TECHNOLOGY IS NOT PERFECT
I'M NOT SURE
I TRY TO SPEAK OVER THE MUSIC
I CAN HEAR YOU GREAT, BUT
[CROSSTALK] IT IS NOT MOVING
IT'S MOVING FOR US
I'M NOT SEEING IT MOVE HERE
YOU'RE AT RESTROOM IMPROVEMENTS
YEAH, I'M NOT
I WAS ON THE RESTROOMS WE'RE TALKING ABOUT THE C1 BUILDING AND YOU'RE GOING TO GET A GLIMPSE OF WHAT THIS WOULD LOOK LIKE AS YOU GO UP THE ESCALATOR IN THE C1 BUILDING
WE'RE GOING TO HAVE NEW LOUNGES, WE'RE GONNA HAVE AIRPORT DINING AND RETAIL
WE'RE GOING TO HAVE NURSING STATIONS, NEW RESTROOMS, OFFICE SPACES IN THIS FACILITY, AND IT'S GOING TO HAVE THIS NICE OPEN, AIRY FEELING AND FROM THE DIFFERENT LEVELS OF THE C1 BUILDING YOU CAN LOOK DOWN AND SEE THE C CONCOURSE ON HERE
SO THIS IS KIND OF A [INAUDIBLE] IS GOING TO BE WHITENED, [INAUDIBLE] HAVE TO REMOVE THE EXISTING ANNEX BEFORE WE DO THAT
AND AS WE GO OVER TO THE NORTH SATELLITE, YOU'VE SEEN WHAT THE FIRST PHASE OF THE NORTH SATELLITE LOOKS LIKE
RIGHT NOW, WE'RE UNDER CONSTRUCTION FOR THE SOUTH END OF THAT
THAT IS GOING TO BE COMPLETED IN 2022
WINTER
WE WILL BE READY TO MEET [INAUDIBLE[ AND THIS IS PRETTY MUCH WHAT THE FIRST PHASE OF NORTH SATELLITE LOOKS LIKE NOW AND GIVES YOU A GOOD IDEA WHAT THE ENTIRE PROJECT
LOUNGES IS GOING TO BE NEXT [INAUDIBLE] ON LOCATION AND WE WANT TO ASSURE THAT ALL OUR LOUNGES ARE
IF YOU LOOK AT THE ALASKA LOUNGE NOW, THEY HAVE TOP-NOTCH FIRST CLASS LOUNGE
LOOK AT THE DELTA LOUNGE, WE HAVE ANOTHER TOP- NOTCH FIRST CLASS LOUNGE
WE WANT WANT TO ENSURE THAT ALL THE LOUNGE'S INCLUDING THE UNCOMMON LOUNGES THAT WE MEET THAT SOPHISTICATION
OUR LANDSCAPING IS GOING TO BE EXTREMELY IMPORTANT TO US
IT WILL AFFECT THE LOOK OF THE PACIFIC NORTHWEST EVERGREEN FORESTS, AGRICULTURE, ETC
AND OF COURSE WATER CONSERVATION IS GOING TO BE EXTREMELY IMPORTANT AND ART IS ALWAYS A MAJOR COMPONENT OF EVERYTHING THAT WE DO AND YOU'LL SEE THIS IN THE OTHER PRESENTATION
LET'S RUN THE NEXT VIDEO AND THIS ONE COMING IN WILL SHOW US COMING IN FROM THE SOUTH AND GOING THROUGH THE NEW CHECKPOINT ONE
GOING OVER TO THE WHAT WE ENVISION THE NEW SOUTH SATELLITE TO LOOK LIKE
ALL RIGHT, I'M GONNA PRESS PLAY ON THE VIDEO FOR THIS ONE
IT'S GOING TO MUTE EVERYBODY AGAIN
SO LANCE YOU'LL NEED TO UNMUTE YOURSELF ONCE IT STARTS PLAYING
THANK YOU
LAUREN, COMMISSIONER BOWMAN IS STILL HAVING ISSUES WITH THE TICKING
I DID ADVISE THAT THE NEXT TWO FILES ARE SMALLER IN SIZE
SO HOPEFULLY IT WILL HAVE A LITTLE BIT BETTER, YOU KNOW REACTION ON THE OTHER END
OKAY, AND I'VE BEEN TOLD BY OUR TECH PERSON OVER ON SCCTV THAT EVERYTHING IS COMING IN FINE ON HIS END AS WELL AND THE VIDEOS OBVIOUSLY, THEY'LL BE MUCH SMOOTHER IF SOMEBODY GOES BACK TO WATCH ON THE LIVESTREAM
PERFECT
UNMUTE AGAIN
OKAY, COMMISSIONERS AND STEVE
SO THIS IS ACTUALLY NOW COMING IN FROM THE SOUTH END AND THIS WILL BE THE EXPERIENCE THAT OUR PASSENGERS AND VISITORS WILL HAVE COMING IN FROM THE SOUTH END GOING THROUGH THE NEW CHECKPOINT POINT OF COURSE, AS I [INAUDIBLE] REFLECTS OUR NEW BRAND WILL BE VISIBLE
ALSO ANOTHER FEATURE OF THE CURVE WILL BE DYNAMIC SIGNS AND THAT WOULD GIVE US FLEXIBILITY AND ALLOW US TO MANAGE THE CURVES FAR FAR MORE EFFICIENTLY THAN WE DO RIGHT NOW WITH THE STATIC SIGNS THAT WE HAVE AND THE COLUMNS WE HAVE VARIOUS DIFFERENT OPTIONS THAT WE'RE LOOKING AT
AS TO WHAT WE DO WITH THOSE COLUMNS, MAYBE WE HAVE SPONSORSHIP, MAYBE SOMETHING DIFFERENT BUT WE WANT THE CURB TO ACTUALLY LOOK AND FEEL LIKE YOU'RE IN THE TERMINAL AS WELL
SO THIS IS COMING IN THE GINAMARIE LEVEL AND YOU'RE GOING THROUGH THE NEW SECURITY CHECKPOINT ONE RIGHT HERE
AND AGAIN, YOU'LL SEE PRETTY MUCH AN ALL OF OUR VIDEOS YOU WILL SEE ART DEPICTED
ART IS GOING TO BE A MAJOR COMPONENT OF OUR VISION CURRENT AND OUR VISION GOING FORWARD AS WELL
SO THIS IS COMING THROUGH THE NEW SECURITY CHECKPOINT 1
YOU'RE GONNA BE COMING OUT BASICALLY MIDWAY OF INTERSTITIAL LEVEL [INAUDIBLE] IF GO LEFT HERE YOU'LL BE GOING UP AT THE CONCOURSE A AND IF YOU GO DOWN THE ESCALATOR YOU'RE GETTING ON THE TRAIN AND THEN YOU'RE GOING TO GO OVER TO THE SOUTH SATELLITE
YOU'RE GOING TO SEE A LITTLE BIT WHAT WE ENVISIONED THE SOUTH SATELLITE LOOKS LIKE
THE FIRST LEVEL AT THE SCS LEVEL WE'RE GOING TO HAVE DUTY FREE
WE'RE STILL [INAUDIBLE] PRODUCTS RIGHT NOW
WE'RE GOING TO HAVE MULTIPLE LEVELS WITHIN THE SOUTH SATELLITE WHILE IT IS GOING TO BE DESIGNED AND CONSTRUCTED SO THAT EVEN WHEN YOU HAVE MULTIPLE LEVELS , YOU WILL STILL FEEL AS IF YOU'RE IN ONE SPACE AND YOU'RE GONNA FEEL AS IF YOU'RE ACTUALLY VERY CLOSE TO YOUR GATES
[INAUDIBLE] IF YOU GO UP TO THE CONCOURSE [INAUDIBLE] AND ABOVE THAT MEZZANINE LEVEL THAT WILL HAVE ADDITIONAL CLUBS AND AIRPORT DINING AND RETAIL SOUND FACILITY AS WELL
JUST IMAGINE YOU EVEN THOUGH YOU'RE AT MULTIPLE LEVELS YOU HAVE THIS FEELING AS IF YOU'RE IN ONE FACILITY
RESTROOMS, BASICALLY THE STANDARD RESTROOM IS GOING TO LOOK AT THE ONE THAT WE HAVE IN THE NEW NORTH TERMINAL AND OF COURSE ADA COMPLIANCE IS EXTREMELY IMPORTANT TO US
SERVICE AREAS
WE ARE GOING TO HAVE SENSORY ROOM FOR TO REDUCE ANXIETY AND FOCUS AND OF COURSE MEDITATION ROOM
AND WE HAVE SET A STANDARD AT AIRPORTS WORLDWIDE FOR THE NURSING STATIONS THAT WE HAVE AND THAT WOULD BE THE STANDARD THROUGHOUT THE NEW FACILITIES THAT WE DID HERE
I'M NOT SEEING THE NURSING SUITE THAT LOOKS ANY BETTER THAN THE ONE THAT WE HAVE ON THE NORTH SATELLITE RIGHT NOW
THAT'S REALLY WHAT WE WANT WITH THE STANDARDS FOR THE FACILITY
AND SO THIS IS WHAT IT WILL LOOK LIKE GOING TO THE SOUTH SATELLITE
NOW THE NEXT VIDEO WE'RE COMING IN AND THIS IS THE LAST ONE
WE'RE GOING TO BE COMING IN ON AN INTERNATIONAL FLIGHT, COMING IN THROUGH THE SOUTH SATELLITE AND GOING THROUGH THE GINAMARIE HALL
YOU'RE GONNA GO ALL THE WAY OVER TO THE NEW TERMINAL ON THE NORTH END OF THE AIRPORT
WE CAN RUN THE THIRD ONE
YEP, I WILL GET IT STARTED NOW
SO THIS IS THE EXPERIENCE THAT OUR GUEST OR VISITOR WILL HAVE COMING INTO THE NEW SOUTH SATELLITE FACILITY
WE SHOW THE INSIDE
THIS IS POTENTIALLY WHAT THE OUTSIDE OF THE FACILITY MAY LOOK LIKE, WHICH IS TOTALLY DIFFERENT THAN IT IS RIGHT NOW
I'M ACTUALLY LOOKING AT IT
YOU'RE GOING TO GO UP SOME OF THE LONGEST ESCALATORS YOU'LL SEE, YOU GO OVER THE BRIDGE WHICH IS THE LONGEST BRIDGE ACROSS A TAXIWAY ANYWHERE IN THE WORLD AND YOU'LL GO INTO OUR NEW INTERNATIONAL ARRIVALS FACILITY 450,000
AGAIN THE ART THAT YOU WILL SEE AND HEAR REFLECTS THE MOUNTAIN RANGES WITHIN THE REGION
ART'S VERY IMPORTANT TO US AND THE WOODWORK HERE IN ARCHITECTURE REFLECTS THE PACIFIC NORTHWEST
GET INTO A BAGGAGE BAY HERE THAT'S FIVE TIMES THE SIZE OF THE ONE THAT WE HAVE RIGHT NOW
SMOOTH PROCESS ALL THE WAY THROUGH
AND YOU WILL EXIT THIS FACILITY INTO THE GINAMARIE HALL
RIGHT HERE, EXITING INTO THE GINAMARIE
NOW IF YOU'RE GOING TO THE NEW TERMINAL, WE'RE JUST GOING TO TAKE A PATH, YOU'RE GOING TO GO OVER TO THE GARAGE OVER TO THE FOURTH FLOOR
AND AGAIN THE FOURTH FLOOR, ESPECIALLY THIS SECTION OF THE FOURTH FLOOR IS GOING TO BE DESIGNED TO LOOK AND FEEL LIKE ALL THE REST OF THE TERMINAL
EXPECTATION IS BY THIS TIME, WE HAVE AUTONOMOUS VEHICLES, BUT IF WE DON'T HAVE THIS VEHICLE, MY EXPECTATION IS THESE ARE GOING TO BE ALL ELECTRIC VEHICLES THAT WOULD BE MOVING PEOPLE THROUGH THE PLAZA, THE GARAGE PLAZA AND ALSO THEY WILL BE AROUND FROM THE FOURTH FLOOR DOWN TO THE SECOND FLOOR AND YOU'LL BE ABLE TO GO ALL THE WAY OVER TO THE NEW TERMINAL RT TO OUR NORTH TERMINAL, NOT SURE EXACTLY WHAT WE'RE GOING TO CALL IT YET
AND ONCE WE GET OVER THERE YOU SEE WHERE EVEN THOUGH IT'S A TERMINAL ON THE NORTH SIDE, THE ENTIRE THING IS CONNECTED
SO THIS IS BUS [INAUDIBLE] IF WE COULD PAUSE REAL QUICK
SO THIS IS THE BUS GUIDE THAT LEADS OVER TO THE NEW TERMINAL
AS WE SAID LANDSCAPE IS IN PLACE, NEW SIGNAGE, BUT IF YOU LOOK TO THE LEFT, THAT WOULD BE THE NEW CONCOURSE THAT WE'LL HAVE ON THE NORTH END OF THE AIRPORT AND ON THE RIGHT IS THE NEW PROCESSING CENTER THAT WE'LL HAVE
THERE WILL BE A BRIDGE THAT CONNECTS THE PROCESSING AREA OVER TO THE CONCOURSE AND IF YOU LOOK AT THE NEW CONCOURSE ON THE NORTH SIDE, THERE'S ALSO A BRIDGE THAT LEADS BACK TO THE NORTH SATELLITE
SO THE ENTIRE AIRPORT IS ACTUALLY CONNECTED
CONTINUE
WE'RE AT THE END
LANCE, YOU ARE MUTED
YEAH YOU HAVE TO UNMUTE EACH TIME
[LAUGHTER] THIS IS GLIMPSE AT WHAT THE NEW TERMINAL WILL LOOK LIKE
EXIT SIGN WE'LL GET RID OF THAT DOT MATRIX AND HAVE A REAL MORE MODERN SIGN THAT REFLECTS OUR TECHNOLOGY REGION HERE
SO THIS PRETTY MUCH IS WHAT WE ENVISIONED THE AIRPORT SHOULD LOOK LIKE MAYBE THE NEXT 10- 20 YEARS FROM NOW
THESE PROJECTS THAT WE HAVE IN THE CIP
YOU WILL SEE HOW EACH OF THESE PROJECT FITS INTO REALIZING THIS VISION
I THINK IT'S VERY IMPORTANT FOR US TO GET GUIDANCE FROM COMMISSIONERS AND FEEDBACK FROM COMMISSIONERS AS WE GO ALONG
SO WHEN WE BRING PROJECTS TO YOU COMMISSIONERS AS PART OF THE CIP, WE'RE BRINGING THESE PROJECTS IN THE CONTEXT OF THIS IS THE VISION
WE'RE TRYING TO GET TO A WORLD-CLASS AIRPORT THAT MEETS THE LEVEL OF SERVICE OPTIMAL DOWN THE ROAD
SO WITH THAT SAID, I AM GOING TO STOP HERE AND I'M GOING TO HAND OVER TO CARRIE UNLESS COMMISSIONERS HAVE ANY QUESTIONS OR STEVE? I'LL HAND OVER TO CARRIE TO WALK THROUGH THE CIP PROCESS
WILL THESE VIDEOS BE PUT ON THE WEBSITE SO THAT THE PUBLIC CAN HAVE THE OPPORTUNITY TO VIEW THEM? YES, ONCE WE'RE FINISHED, THIS IS STILL IN DRAFT COMMISSIONERS, ONCE WE'RE FINISHED WE'RE GOING TO HAVE A FULL-BLOWN VIDEO WITH ACTUALLY NARRATION IN IT
I WONT DO THE NARRATION, SOMEONE WITH A MUCH BETTER VOICE [LAUGHTER[ AND WE'LL HAVE IT ON, WE'LL HAVE IT FOR THE PUBLIC TO VIEW IT
THAT'S GREAT BECAUSE THEY'RE REALLY HELPFUL IN TERMS OF VISUALIZATIONS
SO SO THE FIRST TIME I'VE EVER SEEN THE ENTIRE VISION PROJECTED THIS WAY IN A VISUALIZATION SEQUENCE
A GOOD PIECE OF WORK
WELL, WE HAVE JUST A GREAT TEAM OF EXPERTS THAT HAVE PUT A WHOLE LOT OF WORK INTO LOOKING AT THIS ENTIRE AIRPORT
AND WHAT ARE THE FACILITIES THAT WE NEED? WHAT ARE THE PROJECTS THAT WE NEED TO GET US TO THAT END STATE? AND WANT TO SAY KUDOS TO THE TEAM THAT HAVE DONE A TREMENDOUS JOB
PIECES OF THE PUZZLE COMING TOGETHER
SO WE'RE GOING TO GO TO THE PIECES OF THE PUZZLE SO CARRIE IF YOU COULD
YEAH, SO EVERYBODY CAN HEAR ME NOW? ARE WE GOING TO PROJECT THE PRESENTATION? YEP, I'M WORKING ON IT ON MY END
GIVE ME A MOMENT
OKAY
WELL, LET ME JUST START OFF
SO GOOD MORNING COMMISSIONERS, EXECUTIVE DIRECTOR METRUCK, MY NAME IS CARRIE STEVENS
I'M A MANAGER IN THE AVIATION CAPITAL PROGRAMS DEPARTMENT
WILL TRY TO SPEED THROUGH THIS AS FAST AS I CAN
I KNOW IT'S 9:30 RIGHT NOW
WE HAVE A HARD STOP I BELIEVE AT 10:50 SO I WANT TO GET THROUGH THIS
WE'VE GOT A LOT OF STUFF TO PRESENT AND HOPEFULLY I CAN GET THROUGH ALL YOUR QUESTIONS
SO YOU MAY HAVE HEARD OF THE CAPITAL PROGRAMS DEPARTMENT AND SEEN SOME OF MY TEAM MEMBERS PRESENT IN THE PAST AND MAYBE EVEN WONDERED, YOU KNOW, WHAT WE DO
SO HOPEFULLY THROUGH THIS PRESENTATION YOU'LL GET A FLAVOR FOR THAT
BUT IN A NUTSHELL, OUR FUNCTION IS TO MONITOR AND CONSULT ON THE EXISTING CAPITAL PROGRAM AS WELL AS DEVELOP SCOPE FOR THE FUTURE CAPITAL PROJECTS AND PROGRAMS WE ALSO ACT AS LIAISON AND FACILITATOR BETWEEN DEPARTMENTS TO SET THE PROGRAM OBJECTIVES AND REQUIREMENTS
SO BEFORE WE REALLY GET GOING HERE, YOU KNOW, I HAVE MADE SOME CHANGES TO THE PRESENTATION
WE HAD SOME SMALL ADJUSTMENTS THAT WE MADE TO THE APPENDIX SLIDE SOME OF THE NUMBERS WE HAD TO MAKE SOME ADJUSTMENTS TO
I DID TAKE OUT A SLIDE, I DON'T KNOW IF YOU GUYS HAVE THE MOST CURRENT OR IF YOU HAVE THE PAPER COPIES FROM FRIDAY
POTENTIALLY, YOU DON'T HAVE THE MOST CURRENT
I DID TAKE OUT THE DESIGN CASH FLOW SLIDE BECAUSE AFTER GOING THROUGH IT, I FELT THAT IT REALLY DID NOT PROVIDE MUCH MEANINGFUL INFORMATION
SO ANYWAYS FROM THERE, THAT'S WHERE WE'RE AT
AND THE ONLY OTHER THING THAT I'M THINKING OF LAUREN IS POTENTIALLY PAUSING AFTER THESE FIRST COUPLE OF SECTIONS JUST BECAUSE THEY KIND OF CORRELATE WELL WITH EACH OTHER AND JUST TO KEEP THIS MOVING AS MUCH AS POSSIBLE
I THINK WE'VE GOT SOME, YOU KNOW HIGH-LEVEL INFORMATION AND SOME PROBABLY SOME QUESTIONS FROM SOME DIRECTORS AT THE AT THE END OF IT
SO OTHER THAN THAT, LET'S KEEP GOING ON THIS
NEXT SLIDE, PLEASE
OKAY
SO THIS WAS YOU KNOW, THIS IS OUR AGENDA
AND I THINK YOU KNOW LANCE HAS ALREADY KIND OF SPOKEN ABOUT ALL OF THESE THINGS, WHAT WE PLAN TO ACTUALLY SHOW YOU GUYS TODAY, AND WE'VE ALREADY GONE THROUGH THE SEATTLE VISION 2040
SO LET'S MOVE ON FROM HERE
NEXT SLIDE, PLEASE
OKAY, SO THE CIP PROCESS
SO I THINK I HEARD SOME QUESTIONS ON THE PROCESS A CAPITAL PROJECT GOES THROUGH SO I WANTED TO HIGHLIGHT THAT FIRST WHAT WE SEE IS OUR CAPITAL PROJECT DRIVERS HERE, BUT REALLY THESE ARE AVIATION GOALS THAT RELATE TO CAPITAL WORK
WE'LL DISCUSS THESE AGAIN WHEN WE TALK ABOUT PRIORITIZATION LATER ON
NEXT SLIDE, PLEASE
SO, I BELIEVE YOU'VE SEEN THIS SLIDE BEFORE
THESE ARE THE GATEWAYS THAT EACH PROJECT GOES THROUGH
THIS REPRESENTS REALLY A SIMPLE DESIGN BID BUILD TYPE OF PROJECT WHICH REALLY MOST OF OUR PROJECTS STILL ARE
PROJECTS ARE INITIALLY REQUESTED BY A SPONSORING DEPARTMENT AND THEY GAIN APPROVAL AT THE DEPARTMENT DIRECTOR'S DISCRETION
AND THEN YOU KNOW IN STATUS ONE, WHICH IS THE NEXT LEG DOWN, CAPITAL PROGRAMS, OUR GROUP, TAKES TO DEVELOP AND LAYOUT SCOPE WITH THE STAKEHOLDERS
WE PROVIDED AN ALTERNATIVE REVIEW WITH MULTIPLE CONCEPTS INCLUDING OPERATIONAL ALTERNATIVES
OUR GOAL IS TO UNCOVER ALL OF THE REQUIREMENTS PUT ON A PROJECT AND DO OUR BEST TO MAKE SURE THE HIDDEN REQUIREMENTS DON'T COME UP IN DESIGN AND CONSTRUCTION
WORKING WITH PNG, WE DEVELOP A SCHEDULE AND BUDGET AND PRESENT THAT PACKAGE TO OUR INVESTMENT COMMITTEE FOR DIVISION APPROVAL
THIS IS ALSO THE ORIGINAL BUDGET YOU SEE IN THE PROJECT DOCUMENTS AND IT IS ON THE FAR LEFT SIDE OF THE CONE OF CERTAINTY
SO OVER USUALLY A SIX-MONTH PERIOD BEGINNING OF THE YEAR, WE GO THROUGH AROUND 80 PROJECT REQUESTS
BUT USUALLY A LITTLE LESS THAN 40 MAKE IT TO DIVISION APPROVAL
THAT TYPICALLY EQUATES TO AROUND 300 TO 400 MILLION DOLLARS IN CAPITAL PROJECT INCLUSION INTO THE CAPITAL PLAN
BUT WITH THIS YEAR, WITH THE ADJUSTMENTS THAT WE MADE FOR COVID, WE WERE ABLE TO PROVIDE A NET ZERO PROGRAM BUDGET INCLUSION
PRESIDENT STEINBREUCK, COMMISSIONER BOWMAN HAS A QUESTION
OKAY
COMMISSIONER BOWMAN
THANK YOU
I DON'T MEAN TO GO TOO FAR BACKWARDS
BUT LOOKING AT THIS SLIDE, CARY, THANK YOU VERY MUCH FOR THIS
IS THERE ANOTHER STEP WHERE THE COMMISSION WOULD BE INVOLVED BETWEEN BEFORE STEP 3 WHERE WE'RE JUST BROUGHT A PROJECT FOR DESIGN APPROVAL? THE REASON I ASK IS THAT FREQUENTLY I KNOW THAT IN THE REVIEW OF OUR CURRENT FIVE-YEAR CIP, THE STAFF HAD MADE THE DECISION TO CONTINUE WITH PROJECTS THAT WERE ALREADY IN DESIGN, EVEN THOUGH THE FULL PROJECT HADN'T BEEN AUTHORIZED BY THE COMMISSION
SO MY QUESTION IS AT WHAT POINT DOES THE COMMISSION HAVE, IN YOUR OPINION, HAVE THE ABILITY TO STEP IN AND SAY HOLD ON WE'VE DONE SOME DESIGN WORK
WE'RE NOT SURE THAT WE WANT TO MOVE FORWARD
IT FEELS LIKE WE'RE, THERE'S OBVIOUSLY A GREAT DEAL OF STAFF WORK BEING PUT INTO THESE PROJECTS THINKING THROUGH WHERE THEY FIT INTO THE BIG PICTURE, IT WOULD BE HELPFUL TO KNOW WHEN WE COULD SEE MORE OF THAT BIG PICTURE BESIDES JUST THE VIDEO
DOES THAT MAKE SENSE? I FEEL LIKE THERE'S A VISION THAT THE STAFF IS PUT FORWARD
I'M NOT CERTAIN, AFTER SEVEN YEARS ON THE COMMISSION, I DON'T FEEL LIKE I'VE BEEN PART OF AN APPROVAL PROCESS FOR SEA 2040
AND SO I'M JUST TRYING TO FIGURE OUT WHERE THE COMMISSION FITS IN BESIDES JUST AT STATUS NUMBER THREE
AND COMMISSIONER BOWMAN IF I COULD ADD, I THINK THAT'S AN EXCELLENT QUESTION
IT WAS EXACTLY SORT OF MY THOUGHT AS I WAS LOOKING AT THIS IS WHERE ARE THE COMMISSION CHECKPOINTS IN THIS SCHEDULE OF DEVELOPMENT PROJECT DELIVERY AND I THINK AN IDEAL OPPORTUNITY HERE, IF I COULD INTERJECT, FOR AN INTERIM LEVEL COMMISSION REVIEW AND APPROVAL WOULD BE BETWEEN SCHEMATIC DESIGN AND DESIGN DEVELOPMENT
AND FOR THAT I MEAN BETWEEN STATUS NUMBER 3 AND STATUS NUMBER FOUR
THE DESIGN DEVELOPMENT IS WHEN THE ACTUAL HEAVY LIFTING GOES INTO THE DETAILED CONSTRUCTION DESIGN INCLUDING ARCHITECTURE, ENGINEERING, AND ALL OF THE MECHANICAL WORK AND EVERYTHING
AND IT BECOMES MUCH MORE EXPENSIVE AT THAT STAGE AND THE SCHEMATIC WOULD ALLOW FOR THE COMMISSION TO HAVE AN INTERIM CHECKPOINT TO REVIEW AND CONSIDER COST UPDATES, THE OVERALL PROJECT DIRECTION AND VISION BEFORE TAKING THE NEXT BIG LEAP
SO I THINK THAT'S A REALLY GOOD QUESTION, COMMISSIONER BOWMAN
SO COMMISSIONERM I'M GOING TO ASK TO JEFFREY BRAUN TO JUST RESPOND TO THAT
COULD SOMEONE UNMUTE JEFFREY, PLEASE? THEN WE'LL TRY TO GET BACK ON TRACK WHEN WE CAN
CAN YOU HEAR ME? SO COMMISSION BOWMAN, STEINBREUCK, THANKS FOR THE QUESTION
PER THE CURRENT PROCESS WE HAVE IN PLACE, BEFORE WE SPEND 300 THOUSAND OR MORE ON ANY PROJECT, WE HAVE TO COME TO THE COMMISSION FOR AUTHORIZATION
SO I MEAN MOST LIKELY ON THIS PROJECT WE WILL BE COMING TO YOU BEFORE WE GET TO SCHEMATIC DESIGN
I HOPE THAT ANSWERS THE QUESTION
[CROSSTALK] ENVIRONMENTAL GOALS FOR THE PROJECT
SO THERE IS AN EARLY PLACE FOR SOME COMMISSION INSIGHT AND IT SHOULD JUST BE REQUIRED THAT THE COMMITTEE REPORT OUT TO THE FULL COMMISSION
I'D LIKE STAFF TO TAKE NOTE OF THESE QUESTIONS AND WE'LL GET BACK TO THEM
WE'RE ABOUT 15 MINUTES BEHIND HERE
I DO WANT TO BE SURE TO COMMISSIONERS GET THEIR QUESTIONS OUT THERE ON THE TABLE AND WE CAN ALWAYS FOLLOW UP
THIS IS EXECUTIVE DIRECTOR METRUCK
I DO KNOW THAT COMMISSION BOWMAN'S QUESTION IS DIFFERENT TO COMMISSIONER STEINBREUCK
SO WE'VE GOT BOTH OF THOSE AND WILL GET BACK ON BOTH OF THOSE
OKAY, SO I'M JUST GOING TO KEEP GOING ON THROUGH THE THREE R GATEWAYS HERE AND KIND OF DESCRIBE EACH OF THE LEVELS HERE A LITTLE BIT MORE
WE DO, I THINK, AS COMMISSIONER STEINBREUCK WAS TALKING ABOUT, WE DO HAVE THAT AUTHORIZATION AT BASICALLY SCHEMATIC DESIGN BEFORE WE GO INTO DETAIL DESIGN
THAT AUTHORIZATION IS REQUIRED
BUT AT STATUS TWO LEVEL, YOU KNOW, WE'VE GOT DIVISION APPROVAL AT THIS POINT IN TIME BUT WE STILL NEED TO DO CAPITAL PLANNING
WE STILL NEED TO DO A LOT OF THAT SCHEMATIC DESIGN
SO THIS IS WHERE PNG TAKES CONTROL
THEY WORK ON THE PROCUREMENT, THE PHASING PLAN, RISK ANALYSIS, SCOPE DEFERMENT, EXCUSE ME, SCOPE REFINEMENT, AMONG OTHER THINGS AND A LOT OF TIMES THEY WORK WITH OUR IDIQ DESIGNERS TO PROVIDE A HIGHER LEVEL OF DESIGN FOR SCOPE AND BUDGET REFINEMENT
AT THE END, WE HAVE A PRODUCT NOTEBOOK THAT GETS APPROVED BY OUR INVESTMENT COMMITTEE
ON LARGER PROJECTS WE ARE STARTING TO GO WITH PROJECT DEFINITION DOCUMENTS, OR PDD'S, TO PROVIDE A HIGHER LEVEL OF SCOPE DEFINITION AND DESIGN AND THEREFORE BUDGET CLARITY SINCE WE TYPICALLY BRING ON A CONSULTANT
THE COST FOR PDD'S, IS HIGHER DURING STATUS TWO AND WE TYPICALLY HAVE TO GET MORE AUTHORIZATION FROM COMMISSION
SO IN THAT MODE ANYTHING OVER 300 THOUSAND, JEFFREY TALKED ABOUT, WE GO TO COMMISSION AND GET ADDITIONAL AUTHORIZATION AND WE'VE DONE THAT FOR LITERALLY EVERY PDD THAT WE'VE PUT OUT IN THE LAST COUPLE OF YEARS, C1 BEING ONE OF THE FIRST
SO AT STATUS THREE, WE ARE MOST LIKELY PUTTING THE PROJECT OUT FOR MII APPROVAL AND REQUESTING DESIGN AUTHORIZATION FROM COMMISSION
AND SO AND THEN THE REMAINING GATEWAYS YOU GUYS ARE VERY, SHOULD BE FAIRLY AWARE OF, AND AND FAIRLY SELF-EXPLANATORY
STATUS FOUR, THAT GATEWAY ACTION IS REALLY
WE'RE GOING THROUGH DESIGN, AT THE END OF DESIGN WE REQUEST AUTHORIZATION FOR CONSTRUCTION AND WE GO THROUGH CONSTRUCTION AND THEN WE GO THROUGH CLOSE OUT
OBVIOUSLY, THERE'S CHANGES HERE WHEN YOU DO ALTERNATIVE DELIVERY, YOU KNOW, THERE'S CHANGES WHERE WE'VE DONE A SINGLE AUTHORIZATION INSTEAD OF THESE DOUBLE AUTHORIZATIONS FOR DESIGN AND CONSTRUCTION
WE BUNDLE IT TOGETHER
SO THOSE TYPES OF THINGS HAVE HAPPENED ALSO AND WE CAN GO ON TO THE NEXT SLIDE UNLESS THERE'S ANY QUESTIONS ON THAT
OOPS, KEEP GOING
OKAY CIP PRIORITIZATION
SO LET'S GO ON TO THE NEXT SLIDE
SO WE'VE CREATED A PRIORITIZATION TOOL THAT IS ANALYTICAL IN NATURE
WE USE WEIGHTED AVIATION GOALS AND THEN DEVELOPED A SYSTEM OF METRICS THAT REGISTER SIGNIFICANCE TO EACH GOAL
EACH PROJECT IS REVIEWED FOR EACH PRIORITIZE GOAL AND SCORES ACCUMULATE DOWN THE LINE
THIS IS ALL COMPLETED IN THE STATUS ONE TIME FRAME
IN THE END, WE'VE CREATED AN OBJECTIVE, PRIORITIZED LIST FOR THE DIRECTIONS TO DISCUSS HOW THEY WANT TO PLACE THESE PROJECTS INTO THE CAPITAL PLAN, IF APPROVED
NEXT SLIDE PLEASE
SO NOW I WANT TO GO INTO A HIGH-LEVEL OVERVIEW OF OUR CURRENT FIVE-YEAR CIP
I THINK YOU GUYS HAVE SEEN A LOT OF THE DETAILS IN THE APPENDIX SLIDES
THAT'S WHERE WE CAN DISCUSS SOME OF THOSE THINGS BUT WE'RE GOING TO STAY AT A HIGH LEVEL AT THIS STAGE
I THINK BORGAN'S GOING TO DO SOME PRESENTATION THAT'S GOING TO GIVE YOU A LITTLE BIT MORE NUMBERS, BUT WE CAN CALL IT THE APPENDIX SLIDES IF WE NEED TO
CARRIE? YA? JUST TO PAUSE IT FOR JUST A SECOND
I'D LIKE TO UNDERSTAND BETTER THE ROLE FOR CARRIERS IN THE PRIORITIZATION PROCESS AND WE CAN COME BACK TO THAT
I DON'T WANT TO INTERRUPT THE FLOW HERE
SO WHAT ARE THE ROLES FOR THE AIRLINES IN THE PRIORITIZATION PROCESS? YES
OKAY, SO LET'S GO TO NEXT SLIDE
OKAY
SO IN THIS VIEW WE'VE DIVIDED THE PROJECTS INTO THE THREE CAPITAL PHASES FOR A PROJECT: PLANNING, DESIGN AND CONSTRUCTION
WE'VE ALSO PUT THEM IN CATEGORIES BY TYPE OF PROJECT
THIS CORRELATES TO OUR GOALS AND DRIVERS THAT I SHOWED EARLIER
ONE OF THE FIRST SLIDES
RENEWAL AND REPLACEMENT CORRELATES TO ASSET MANAGEMENT BUT THERE'S USUALLY OTHER DRIVERS WRAPPED IN, R&R IS JUST THE DOMINANT ONE
THE SAME KIND OF THOUGHT CAN BE SAID FOR SAFETY AND SECURITY
REGULATORY IS ACTUALLY OUR COMPLIANCE WORK
IT HAS DRIVERS IN SAFETY, SECURITY, ENVIRONMENTAL, AND ASSET MANAGEMENT
AND BUSINESS NEED REALLY COVERS A LOT OF OUR REMAINING DRIVERS SUCH AS CUSTOMER SERVICE AND REVENUE GENERATION
IT'S MORE DISCRETIONARY IN NATURE
ON THE RIGHT, YOU SEE OUR TALLY OF OUR MEGA PROJECTS
THESE ARE PROJECTS THAT ARE OVER 300 MILLION
WE'VE HAD THREE PROJECTS THAT YOU KNOW A LOT ABOUT
WE ARE GOING TO BE ADDING THREE MORE PROJECTS TO THE CAPITAL PLAN AND THEN OUR RECENTLY PROPOSED ARE PROJECTS THAT WE PUT INTO THE CAPITAL PLAN, REALLY IN THE LAST COUPLE OF WEEKS
DIRECTORS FEEL THAT WE WILL BE ACTING ON THESE PROJECTS AND THEY VISIBILITY IN THE CAPITAL PLAN
WE STILL HAVE QUITE A BIT OF WORK TO DO TO IRON THESE ONES OUT THOUGH
ANY QUESTIONS? I CAN GO ON THE NEXT SLIDE
WHEN WILL WE GET DETAILS ABOUT THE RECENTLY PROPOSED PROJECTS? SO I'M GOING TO GO THROUGH THOSE AT THE END
WE HAVE A COUPLE OF SLIDES ON THE RECENTLY PROPOSED PROJECTS THAT'LL GIVE YOU SOME, YOU KNOW, HIGH LEVEL DETAILS
WE CAN ASK QUESTIONS, WE CAN TALK THROUGH THOSE
OKAY, SO NEXT SLIDE, PLEASE
OKAY
SO THIS IS PROJECT BY LOCATION
SO OUR MAIN TERMINAL COMPLEX WAS BUILT 50 YEARS AGO
SO WE HAVE QUITE A BIT OF RENEWAL REPLACEMENT
MAJORITY OF OUR PROJECTS IN THE MAIN TERMINAL OUR INFRASTRUCTURE IN NATURE AND YOU KNOW FOR LANDSIDE, THAT'S ALSO GOING TO INCLUDE ALL THE WORK THAT WE HAVE IN THE GARAGE
SO MAINLY THIS IS MAIN TERMINAL AND YOU'LL SEE RENEWAL REPLACEMENT IS A BIG PORTION OF IT, INFRASTRUCTURE
NEXT SLIDE PLEASE
ON OUR FIVE YEAR CASH FLOW, AND WHAT WE'RE WORKING ON IS A PERCENTAGE OF COST
MOST OF THE CASH FLOW IS GOING TO RENEWAL REPLACEMENT AS YOU CAN SEE HERE
YOU'LL SEE A BREAKDOWN LATER, BUT THIS EQUATES TO OVER THREE BILLION IN CASH FLOWS OVER THE FIVE-YEAR PERIOD
NEXT SLIDE
AND SO HERE YOU CAN SEE PROJECTS THAT ARE CURRENTLY IN CONSTRUCTION IN THE CAPITAL PLAN
WE HAVE 51 PROJECTS AND THE OVERWHELMING MAJORITY OF THEM ARE RENEWAL REPLACEMENT
AND I SOMEWHAT THINK THAT THIS IS ACTUALLY KIND OF KEY WITH WHAT'S GOING ON RIGHT NOW
THIS CREATES A GOOD FOUNDATION FOR HOW WE RECOVER FROM THE PANDEMIC
WE GET THROUGH A LOT OF OUR RENEWAL REPLACEMENT
ALLOWS US TO CREATE THAT STRUCTURE, THAT FOUNDATION THAT WE CAN THEN EXPAND ON AND OPTIMIZE IN THE FUTURE
SO WITH THAT MY COMMENTS ON THIS SECTION ARE COMPLETE
ANY QUESTIONS I CAN GO THROUGH THAT
SO NOTE THAT THIS PIE CHART IS DIFFERENT FROM THE ONE WE RECEIVED EARLIER
THE NUMBERS HAVE CHANGED
WELL, YOU KNOW
THE ONE YOU'RE LOOKING AT MIGHT BE DESIGN
IF YOU SEE THAT UP OFF THE TOP BY YOUR CASH FLOW DESIGN
ITS IT LOOKS LIKE EXACTLY THE SAME SLIDE ONLY THE NUMBERS ARE DIFFERENT
TOTAL FIVE YEAR CAPITAL CASH FLOW, CATEGORY BREAKDOWNS
I'VE GOT 51 PERCENT
FOR THE BIG ONE, RENEWAL AND REPLACEMENT 53% AND YOU GOT 80% IN THIS ONE I THINK WE HAVE THE WRONG HEADERS
SOMETHING HAS BEEN ALTERED SINCE THE PREVIOUS DIGITAL VERSION WAS DELIVERED TO COMMISSIONERS
ARE YOU LOOKING AT SLIDE 14? THIS SAYS SLIDE 12 IN FACT
OH, THAT IS THE FULL FIVE-YEAR CASH FLOW
THAT'S FOR ALL PROJECTS
THE SLIDE 14 WAS FOR JUST PROJECTS IN CONSTRUCTION NOW
OKAY, I APOLOGIZE
OKAY, THANK YOU
SO IF YOU'RE LOOKING JUST AT THAT FIVE-YEAR CASH FLOW, YES, 53% OF OUR PROJECTS OVER THE NEXT FIVE YEARS ARE GOING TO BE RENEWAL REPLACEMENT
OKAY, I WAS MISTAKEN
I WAS ON THE WRONG SLIDE
THANKS, BUT NO, BUT I THINK THE SLIDES COULD BE TITLED BETTER
I HAVE ONE QUICK QUESTION
IF YOU WERE TO LOOK AT RENEWAL AND REPLACEMENT, SINCE IT IS SUCH A HUGE CATEGORY, COULD YOU BREAK THAT UP? WHAT IS RENEWAL AND WHAT IS REPLACEMENT? THAT WOULD BE A GOOD THING
YES
YEAH, WE WOULD HAVE TO GO THROUGH, IT WOULD TAKE US A LITTLE BIT OF TIME TO GO THROUGH AND REALLY BREAK THAT UP, BUT WE COULD DO THAT, [CROSSTALK] CORRECT
WE HAVE TO MAKE SOME
YEAH, WE'D HAVE TO MAKE SOME ADJUSTMENTS
I AGREE
IN CERTAIN CASES, THIS IS ASSETS THAT WE ARE REPLACING IN KIND AND THEN THERE ARE, OTHERS THAT WE CAN FORMULATE [CROSSTALK] CAN WE TAKE THAT AS A TAKEAWAY QUESTION TO RESPOND TO LATER ON THE BREAKDOWN FOR RENEWAL REPLACEMENT? ANY OTHER QUESTIONS? ALL RIGHT
GOOD MORNING COMMISSIONERS
THIS IS BORGAN ANDERSON, DIRECTOR OF AVIATION FINANCE AND BUDGET
LET'S GO ON TO THE NEXT SLIDE, PLEASE
THE MOST IMPORTANT DRIVER IS REALLY OUR PASSENGER LEVELS
AND SO I'M GOING TO TALK TO YOU A LITTLE BIT ABOUT OUR FORECAST AND WHAT'S PARTICULARLY NOTABLE IS THAT OUR FORECAST HASN'T CHANGED SINCE WE FIRST PRESENTED YOU OUR UPDATES BACK IN EARLY JUNE AND I WANTED TO ACKNOWLEDGE THE FINE WORK OF MICHAEL DROLLINGER AND HIS TEAM IN THE BUSINESS INTELLIGENCE AREA
THEY DO A REALLY SOLID JOB
SO WHAT WE'RE LOOKING AT IS OUR 2020 FORECAST WE STILL EXPECT TO BE 61 PERCENT DOWN FOR THE YEAR
AND FOR 2021, WE STILL ARE PLANNING TO BE DOWN 30%
WHEN WE LOOK OUT BEYOND THAT, WE ARE ANTICIPATING A RECOVERY TO 2019 LEVELS BY 2024 SO THIS WOULD BE A FIVE-YEAR RECOVERY
AND THIS IS PRETTY CONSISTENT WITH THE INDUSTRY EXPERT WE BROUGHT IN
WE SPOKE TO YOU IN LATE JULY STEVEN BEEBE WHO WAS TALKING ABOUT A TWENTY THREE TWENTY FOUR ISH KIND OF RECOVERY TIME FRAME THAT HE WAS SEEING
AND WE'VE SEEN SIMILAR THINGS FROM OUR YOU KNOW INDUSTRY EXPERTS FROM ALASKA AND FROM DELTA
AND THERE'S YOU KNOW OUTSIDE EXPERTS ALL OVER THE PLACE, BUT GENERALLY SPEAKING THOSE WHO ARE A LITTLE ON THE MORE ON THE OPTIMISTIC SIDE WOULD LOOK TO A RECOVERY TO 2019 LEVELS BY 2022 OR 23
THOSE THAT ARE ON THE MORE PESSIMISTIC SIDE WOULD BE OUT 25, 26
SO WE RECOGNIZE THERE'S A LOT OF UNCERTAINTY ABOUT OUR FORECAST BUT WE THINK 2024 IS A PRETTY REASONABLE TIME FRAME TO GET BACK TO 2019 LEVELS
BORGEN, I HAVE A QUESTION
THIS IS STEPHANIE HAVE YOU, I'M ASSUMING YOU ALL HAVE DIVIDED OUT FOR PASSENGER ENPLANEMENTS ESTIMATES FOR INTERNATIONAL PASSENGERS VERSUS DOMESTIC PASSENGERS? YEAH, AND WHAT'S GOING ON THERE, I MEAN NO SURPRISE, IS THAT THE INTERNATIONAL IS LAGGING DOMESTIC AND SO I CAN GIVE YOU THE ACTUAL NUMBERS IF YOU LIKE, BUT THEY'RE NOT IN THE FORECAST, WHICH I'LL SHOW IN THE NEXT SLIDE
THERE'S S A LITTLE MORE DETAIL ABOUT THIS, BUT I ACKNOWLEDGE YOUR QUESTION AND WE'LL GET BACK TO YOU ON THAT BREAK OUT
THANK YOU
LET'S GO TO THE NEXT SLIDE, PLEASE
SO HERE IS THE THE MONTH BY MONTH VIEW OF WHAT'S GOING ON AND YOU CAN SEE THE BIG DROP EARLIER THIS YEAR AND WE'VE BEEN COMING BACK SLOWLY BUT STEADILY
THE GRAY MARKER FOR JULY AND AUGUST I CAN REPLACE WITH ACTUAL BUT I LEFT THE FORECAST HERE SO YOU CAN SEE HOW CLOSELY WE'VE BEEN TRACKING
SO IN JULY WE WERE ACTUALLY DOWN 72% INSTEAD OF 74%
IN AUGUST, WE WERE DOWN 70% INSTEAD OF 69%
SO WE WERE SLIGHTLY BETTER IN JULY AND JUST SLIGHTLY WORSE IN AUGUST
BUT OVERALL, WE ARE TRACKING VERY CLOSELY TO THIS FORECAST, WHICH IS WHY WE'RE STILL USING THIS AS A BEST ESTIMATE OF OUR YEAR-END PASSENGER LEVELS
SO AGAIN, WE'D BE DOWN 61 PERCENT COMPARED TO 2019 BASED ON THIS FORECAST HERE
BORGEN, THIS IS RYAN
ARE YOU USING AIRLINE BOOKING DATA TO INFORM NOVEMBER DECEMBER? YEAH, MICHAEL DROLLENGER AND HIS TEAM LOOK AT A LOT OF FACTORS AND YOU KNOW, AIRLINE BOOKINGS ARE AN IMPORTANT PART OF THAT
I THINK THAT YOU KNOW ONE ACKNOWLEDGES THAT AIRLINE BOOKINGS ARE PROBABLY NOT AS CERTAIN AS THEY WOULD HAVE BEEN IF YOU LOOKED AT THEM A YEAR AGO, BUT IT STILL CONTINUES TO BE ONE OF THE INDICATORS THAT ARE TAKEN INTO CONSIDERATION
OKAY
THANK YOU
COMMISSIONER BOWMAN HAS A FOLLOW-UP QUESTION
THANK YOU
BORGEN, I UNDERSTAND FROM THE AIRLINES THAT THEY ARE ALREADY MAKING ADJUSTMENTS TO THEIR SEPTEMBER NUMBERS AND MOVING ON TO THE FALL THAT THEY WERE SEEING FLATTENING DEMANDS
HOW CLOSELY, I GUESS TO FOLLOW UP ON COMMISSIONER CALKINS QUESTION, ARE WE IN TOUCH WITH THE CARRIERS TO REALLY UNDERSTAND? OBVIOUSLY THEY HAVE DAY-TO-DAY INFORMATION ABOUT BOOKINGS
I AM JUST CONCERNED ABOUT WHAT I'M HEARING FROM THEM ABOUT FLATTENING DEMAND THROUGHOUT THE FALL AND WINTER WHILE YOUR PROJECTIONS WOULD LOOK FOR INCREASED DEMANDS
SO HELP ME
DO WE HAVE AN ALTERNATIVE SCENARIO THAT YOU'RE CONSIDERING? WE HAVE AN ALTERNATIVE
WE HAVE LOOKED
BACK IN JUNE WE PRESENTED SOME ALTERNATIVES AND CLEARLY THERE'S UNCERTAINTY SURROUNDING THIS
DON'T GET ME WRONG, BUT I'M JUST SAYING THIS IS OUR BEST INDICATOR
THIS FORECAST WAS ACTUALLY QUITE CONSERVATIVE AT THE TIME
MANY OTHER AIRPORTS WERE SHOWING BETTER FORECAST FOR 2020 THAN WE WERE
AND SO BASED ON MY MOST RECENT CONVERSATIONS WITH MICHAEL DROLLINGER, YOU KNOW, HE WOULD SAY THAT SOME OF THE UNCERTAINTY THAT THE AIRLINES ARE NOW FACING AND SOME OF THE PULLBACKS, IF YOU WILL, COMPARED TO WHAT THEY THOUGHT THEY WERE GOING TO DO IS STILL REASONABLY CONSISTENT WITH THIS FORECAST
SO IS IT GOING TO BE PERFECT? NO, NO FORECAST IS EVER PERFECTLY ACCURATE, BUT WE STILL THINK THIS IS A REASONABLE ESTIMATE OF WHAT COULD HAPPEN
[CROSSTALK] JUST A FOLLOW-UP
JUST WANT TO THANK YOU AND THE STAFF FOR AND COMPLIMENT YOU AND THE STAFF ON YOUR EARLY PROJECTIONS AND BEING MORE CONSERVATIVE IN THE EARLY DAYS OF THE PANDEMIC
SO PLEASE DON'T GET ME WRONG THAT I DON'T APPRECIATE ALL THE WORK
I'M JUST CONCERNED ABOUT AGAIN WHAT I'VE HEARD DIRECTLY FROM THE AIRLINES ABOUT THEIR CONCERNS MOVING INTO THE THIRD AND FOURTH QUARTERS OF THIS YEAR
AND SO I JUST WANT TO
I WOULD PREFER TO BE MORE CONSERVATIVE IN OUR ESTIMATES AS WELL AND THEN BE ABLE TO HAVE MORE CAPITAL OR PLANNING ABILITY TO DIVE INTO PROJECTS AS OPPOSED TO THINKING THAT, YOU KNOW, BY DECEMBER THAT WE WOULD ONLY BE DOWN 50%
AND IN FULL DISCLOSURE I'VE SAID THIS IN MANY MANY MEETINGS
THERE'S A LOT OF OTHER VARIABLES OUT THERE THAT I'M ENCOURAGING OUR AIRPORT STAFF TO TAKE A LOOK AT
YOU KNOW, AGAIN TALKING DIRECTLY TO THE BUSINESSES THAT DEPEND ON BUSINESS TRAVEL, THE AMAZONS, THE GOOGLES, THE MICROSOFTS, THE STARBUCKS, TALKING TO THE HOTEL INDUSTRY ABOUT THEIR PROJECTIONS FOR HOTEL OCCUPANCY
IT FEELS LIKE THERE'S OTHER FACTORS THAT I HOPE THAT WE WOULD BE CONSIDERING IN ADDITION TO WHAT WE NORMALLY USE FOR PASSENGER ENPLANEMENTS MODELS
ALL GOOD POINTS
AND ONE OF THE THINGS THAT WE SEE NATIONWIDE IS THAT THE MAJOR AIRLINES ARE CONSOLIDATING AT THEIR MAJOR HUBS AND SO OBVIOUSLY ALASKA IS CONTINUING TO FOCUS ON SEATTLE AND DELTA IS STILL FOCUSING ON SEATTLE AND THAT MAKES SEA-TAC SLIGHTLY MORE RESILIENT THAN SOME OTHER AIRPORTS
AND SO, YOU KNOW, ALL I CAN SAY IS THIS AS I JUST ONE OF MANY THINGS THAT WE LOOK AT ON A MONTHLY BASIS AND AS CONDITIONS CHANGE, WE WILL CHANGE THIS FORECAST
ALL I CAN SHARE WITH YOU RIGHT NOW IS THAT BASED ON THE MOST RECENT MEETING WE HAD WHICH WAS NOT TOO LONG AGO, THIS IS STILL OUR BEST INDICATION
AND YOU KNOW, WE DO SPEAK WITH ALASKA AND DELTA ON A REGULAR BASIS AND WHEN WE HAD SOME DISCUSSIONS ABOUT 2021 BUDGET, THEY LOOKED AT OUR FORECAST AND SAID, WE'RE FOCUSING ON 2021 AT THE TIME, BUT THAT'S BEING BUILT OFF OF THIS FORECAST AND THEY BASICALLY SAID, YOU KNOW, THAT'S PROBABLY PRETTY REASONABLE
SO YOUR CONCERNS ARE RIGHT ON AND WELL-FOUNDED AND WE TRY TO TAKE AS MUCH INFORMATION AS WE CAN INTO BUILDING OUR FORECAST AND WE REGULARLY REASSESS AND WE WOULD ADJUST IF WE SEE THINGS POINTING IN A DIFFERENT DIRECTION
COMMISSIONER FELLEMAN HAS A QUESTION
YES, THANK YOU BORGEN
I WAS WONDERING IN TERMS OF FOR AIRPORTS OF COMPARABLE SIZE THE RATIO OF DOMESTIC VERSUS INTERNATIONAL FLIGHTS THAT WE HAVE COMPARED TO OTHERS BECAUSE BASED ON THE COMMENTS WE GOT FROM A CONSULTANT WAS THAT THEY THOUGHT THE DOMESTICS WERE GOING TO RECOVER QUICKER THAN THE INTERNATIONAL
SO JUST WONDERING ARE WE MORE EXPOSED THAN OTHERS? SO WE GOT TO REMEMBER THAT INTERNATIONAL TRAFFIC AT SEA-TAC HAS BEEN IN THIS SORT OF TEN TO ELEVEN PERCENT AS A PERCENTAGE OF OUR TOTAL TRAFFIC
SO DEPENDING ON WHICH AIRPORT YOU'RE POINTING TO, YOU KNOW, WE ARE EITHER MORE EXPOSED OR A LOT LESS EXPOSED
SO IT ALL DEPENDS
BUT I MEAN INTERNATIONAL IS A VERY IMPORTANT PART OF OUR PASSENGER MIX BUT IT'S STILL HISTORICALLY BEEN IN THE 10 TO 11 PERCENT RANGE NOT LIKE SOME OTHER AIRPORTS WHERE IT WOULD BE IN THE 20S TO 30 PERCENT RANGE
I'M JUST WONDERING FOR COMPRABLE SIZED AIRPORTS
DOES THIS SUGGEST YOU KNOW, HOW CONSISTENT WITH OUR ESTIMATES BE WITH SOME OF THE OTHER AIRPORTS OF OUR DIMENSION? YOU KNOW, I THINK IT EACH AIRPORT IS A LITTLE BIT DIFFERENT AND IT DEPENDS ON THEIR CARRIER MIX AND IT DEPENDS ON THEIR HUB STATUS
YOU KNOW IF YOU GOT SOME SPECIFIC QUESTIONS, WE CAN TRY TO LOOK INTO IT BUT IT'S HARD FOR ME TO GENERALIZE ABOUT HOW WE COMPARE TO OTHER AIRPORTS OUR SIZE BECAUSE YOU KNOW WE'RE THE, BASED ON 2019, THE 8TH LARGEST AIRPORT IN THE U.S
AND BUT OUR CHARACTERISTICS ARE TO SOME EXTENT REFLECTIVE OF WHERE WE ARE GEOGRAPHICALLY AND WHO OPERATES, MEANING ALASKA AND DELTA, AT THIS AIRPORT AS WELL AS A SOLID MIX OF FOREIGN FLAG CARRIER
SO EVERY AIRPORT IS A LITTLE DIFFERENT AND INDIVIDUAL AIRLINES ARE MAKING THEIR OWN DECISIONS AND IT'S JUST VERY HARD FOR ME TO GENERALIZE
YOU SAID 11%
I MEAN MEAN, I WAS JUST WONDERING OTHER AIRPORTS OF OUR SIZE AROUND 11% WHEN YOU'RE TRYING TO COMPARE PROJECTIONS, THAT'S ALL
OKAY
WELL, YOU KNOW, FOR EXAMPLE, SAN FRANCISCO, LARGER AIRPORT, HAS A MUCH HIGHER PERCENTAGE OF INTERNATIONAL TRAFFIC
VANCOUVER, ACTUALLY A MUCH SMALLER AIRPORT HAS A MUCH HIGHER PERCENTAGE OF INTERNATIONAL TRAFFIC
SO THEY ARE GOING TO BE MUCH MORE VULNERABLE THAN WE ARE
ALL RIGHT
THANK YOU
BORGEN, I COULD REALLY ADD TO THAT JUST TO MAKE THE POINT COMMISSIONER FELLEMAN
WE ARE DOWN SEVENTY PERCENT YEAR-TO-DATE AS OF AUGUST FOR INTERNATIONAL PASSENGERS AND WE'RE DONE 58% FOR DOMESTIC PASSENGERS
BUT AS BORGEN SAID, INTERNATIONAL TRAFFIC PROCESS IS ONLY APPROXIMATELY 10 PERCENT IN TOTAL
SO IF YOU LOOK AT AN AIRPORT LIKE VANCOUVER OR MIAMI OR SAN FRANCISCO, WHICH HAVE A FAR FAR HIGHER INTERNATIONAL TRAFFIC THIS THEN WE DO, THEY'RE GOING TO BE IMPACTED MORE SIGNIFICANTLY THAN US WITH INTERNATIONAL TRAFFIC
ALL RIGHT
THANK YOU
OKAY, GREAT QUESTIONS
LET US MOVE ON TO THE NEXT SLIDE IF WE COULD, PLEASE
ALL RIGHT
THIS IS JUST A LOOK AT THE THE FIVE-YEAR LOOK AHEAD
AND YOU KNOW IF WE LOOK AT 2020 AND 2021 COMPARED TO 2019, YOU CAN SEE THE DEPTHS OF THE DROP
THE BOX ON THE RIGHT SHOWS THE ANNUAL CHANGES AND ALSO A COMPARISON TO 2019 SO YOU CAN SEE HOW WE'RE MARCHING BACK TOWARDS 2019 LEVELS BY 2024
AS WE LOOK FOR 2021, YOU KNOW, THE GREAT NEWS IS WE'LL BE GROWING AT ALMOST 80%
THE BAD NEWS IS WE'LL STILL BE DOWN BY 30% WHICH JUST SHOWS WHAT GOES ON WITH BIG NUMBERS AND AN ENORMOUS CHANGES LIKE WE'VE SEEN
BUT I THINK YOU KNOW CONSISTENT WITH WHAT WE'VE BEEN TALKING ABOUT, THERE REMAINS TREMENDOUS UNCERTAINTY ABOUT THIS FORECAST
THINGS COULD PLAY OUT VERY DIFFERENTLY AND BECAUSE OF THAT, WE'RE GOING TO BE LOOKING AND REVISITING THIS FORECAST ON A REGULAR BASIS AND TO THE EXTENT WE NEED TO THIS WILL CHANGE THE TRIGGERS, OR THE TIMING OF THE NEED, FOR CERTAIN PROJECTS
PARTICULARLY THOSE THAT RELATE TO BRINGING ON NEW CAPACITY
I'LL TALK ABOUT A LITTLE BIT LATER, THIS REALLY, FOR THE MOST PART, WON'T CHANGE OUR NEED FOR MAINTAINING OUR EXISTING FACILITIES AND THE RENEWAL AND REPLACEMENT PROGRAMS THAT CARRIE WAS DESCRIBING EARLIER, BUT OBVIOUSLY AS IT RELATES TO ADDING NEW CAPACITY TO BE ABLE TO LOOK AHEAD AND TO HAVE A GOOD UNDERSTANDING OF WHAT THE FORECAST IS GOING TO BE WILL HELP US IN BRINGING PROJECTS TO YOU AT THE RIGHT TIME
NEXT SLIDE PLEASE
SO NOW WE'LL TALK A LITTLE BIT ABOUT THE IMPACTS OF COVID-19 ON OUR CAPITAL PROGRAM
NEXT SLIDE, PLEASE
WELL, WHEN WE FIRST WERE ASSESSING THE IMPACTS, IT WAS ALL ABOUT CASH PRESERVATION
THE CARES ACT GRANT HADN'T PASSED YET, BUT WE KNEW WE NEEDED TO MAKE SOME CHANGES
AND SO INITIALLY WE WENT THROUGH ALL OF OUR CAPITAL PROJECTS WITH A FOCUS ON THOSE THAT WERE CASH FUNDED OR FUNDED BY THE AIRPORT DEVELOPMENT FUND AND WE CAME UP WITH A PLAN TO DEFER APPROXIMATELY 28 MILLION DOLLARS, AND THIS WAS REALLY AIMED AT CASH PRESERVATION
IN APRIL, WE STARTED TO RECOGNIZE THAT THERE COULD BE SOME REAL BENEFITS TO HAVING FEWER PASSENGERS IN THE TERMINAL AND FEWER PLANES ON THE GROUND
AND SO THIS GAVE US THE OPPORTUNITY TO ACCELERATE CERTAIN PROJECTS AND I THINK THE NOTABLE PROJECTS THERE WOULD BE THE AIRFIELD PAVEMENT WORK THAT WAS DONE THIS YEAR, OR IS BEING DONE THIS YEAR
AND ALSO THE THE NORTH SATELLITE WHERE TAKING ADVANTAGE OF FEWER PASSENGERS HAS ALLOWED ELEMENTS OF THAT PROJECT TO BE ACCELERATED WITH SOME SAVINGS AND SCHEDULE THAT ARE REALLY IMPORTANT
THEN IN MAY AND JUNE, WE WENT THROUGH THE REVIEW THAT KERRY TALKED ABOUT EARLIER OF ALL THE NEW PROJECTS AND THERE WAS A LENGTHY REVIEW THAT RESULTED IN AN ELIMINATION OF SOME PROJECTS AND THE ADDITION OF THE NEW ONES WITH THE GOAL OF MAINTAINING A CASH NEUTRAL POSITION OVER THIS FIVE-YEAR PERIOD
MORE RECENTLY, WE HAVE BEEN TRYING TO ADDRESS SOME KNOWN PROBLEMS THAT WE'VE HAD AND BY THAT I MEAN WE'VE HAD, WE RECOGNIZED WE HAD SOME UNDER FUNDED PROJECTS AS WELL AS SOME PROJECTS THAT WERE JUST NOT FUNDED AT ALL
AND SO AS KERRY INDICATED, WE'VE GOT SOME NEWLY PROPOSED PROJECTS AND WE'VE TAKE A GOOD HARD LOOK AT SOME OF THE BUDGETS OF OUR EXISTING PROJECTS AND WE TRIED TO GET THE TOTAL COST FULLY REFLECTED IN OUR CAPITAL PROGRAM AND THIS IS REALLY FOR VISIBILITY AND TRANSPARENCY IN TERMS OF WHAT WE FEEL WE REALLY NEED TO ACCOMPLISH OVER THE NEXT FIVE YEARS
IN ADDITION
WE DID GO THROUGH ALL THE PROJECTS THAT WERE UNDER DESIGN AND CONFIRMED THAT WE STILL NEEDED TO DO THOSE
NEXT SLIDE, PLEASE
SO IN TERMS OF OUR FOCUS IN THIS TIME PERIOD WHERE WE'RE GOING THROUGH, WE KNOW WE HAD A BIG DROP IN PASSENGERS AND WE SEE A RECOVERY COMING AND WHAT'S OUR FOCUS NOW? WELL, OBVIOUSLY WE'RE LOOKING AT ALL THE PROJECTS AND THOSE THAT ARE OF THE HIGHEST PRIORITY ARE THOSE THAT WE THINK WE WOULD NEED UNDER ANY REASONABLE RECOVERY SCENARIO
IN OTHER WORDS, WE COULD TAKE THE OPTIMISTIC THE BASE CASE OR THE MORE PESSIMISTIC CASE WE SAY YEP WE STILL NEED TO DO THESE
AND THESE ARE REALLY THE BIG RENEWAL AND REPLACEMENT PROJECTS
AND YOU SAW THE VISION OF THE SOUTH SATELLITE RENOVATION AND YOU KNOW THAT'S A VERY DIFFERENT FACILITY FROM WHAT WE HAVE TODAY
AND ONE OF THE THINGS THAT WE RECOGNIZED IS THAT WE HAVE SOME SEISMIC CONCERNS THERE THAT MUST BE ADDRESSED AND SO RATHER THAN SPENDING MULTIPLE HUNDREDS OF MILLION DOLLARS TO JUST ADDRESS SEISMIC NEEDS, WE ARE LOOKING AT THIS AS AN OPPORTUNITY TO FUNDAMENTALLY RENOVATE THE FACILITY AND GET SOMETHING THAT'S A VERY DIFFERENT PRODUCT AT THE END
ANOTHER EXAMPLE OF THIS WOULD BE THE MAIN TERMINAL INFRASTRUCTURE AND YOU'LL GET A BRIEFING ON THAT LATER TODAY
BUT THIS IS A PROJECT THAT'S JUST GOING TO BE VERY INVASIVE WITHIN OUR TERMINAL TO ADDRESS SMOKE CONTROL ISSUES AND OTHER KEY ELEMENTS OF THE TERMINAL INFRASTRUCTURE
THE OTHER THING WE WANTED TO DO WAS BASED ON YOUR DIRECTION TO MAKE SURE THAT OUR NOISE PROGRAM WAS FULLY REFLECTED IN OUR CIP
IN CERTAIN CATEGORIES WE NEED HELD ONTO BASICALLY PILOT PROGRAMS FOR APARTMENTS AND CONDOMINIUMS AND PLACES OF WORSHIP AND WHAT WE'RE NOW PROPOSING IS OUR BEST ESTIMATE OF WHAT THE FULL COST OF THOSE PROGRAMS WOULD BE, AGAIN, SO THAT WE CAN REALLY PLAN THIS OUT AND MAKE SURE THAT WE'VE GOT FULL VISIBILITY AND TRANSPARENCY TO OUR PROGRAM
ANOTHER KEY ELEMENT OF OUR CAPITAL PROGRAM DURING THIS PERIOD IS TO STRIVE WHEREVER POSSIBLE TO ACHIEVE EFFICIENCIES IN HOW WE ARE USING OUR CURRENT FACILITIES AND GETTING THE FINAL PHASE OF BAGGAGE OPTIMIZATION IS A GREAT EXAMPLE OF THAT
THE AIRLINE REALIGNMENT, JUST BEING ABLE TO USE OUR FACILITIES A LITTLE MORE EFFICIENTLY
AND THEN YOU'LL HEAR A LITTLE BIT ABOUT THE ZONE 6 ON 7 PROJECT TOWARDS THE END OF THIS PRESENTATION AND THE POSSIBILITY OF REDESIGNING CHECK POINT 5 THAT WOULD BE A PART OF THAT AS A WAY TO EKE OUT A LITTLE BIT OF ADDITIONAL CAPACITY AND EFFICIENCY IN HOW WE'RE USING OUR CURRENT FACILITIES
SO WE KNOW WE'RE GOING TO BE USING THESE FACILITIES FOR A LONG TIME
WE FULLY EXPECT THE DEMAND TO COME BACK AND SO WE'RE GOING TO TRY TO REALLY FOCUS OUR EFFORTS ON OUR EXISTING FACILITIES
NEXT SLIDE, PLEASE
SO ONE OF THE OTHER AREAS THAT'S REALLY IMPORTANT FROM A STRATEGIC STANDPOINT IS TO GENERATE NON-AERONAUTICAL REVENUES
WE'VE GOT TO HELP PAY FOR ALL THESE PROGRAMS AND WHEN WE LOOK AT THE OPPORTUNITIES THERE, ONE OF THE THINGS THAT WILL BE HAPPENING ON CONCOURSE A UPON THE COMPLETION OF THE INTERNATIONAL ARRIVALS FACILITY IS THERE WILL BE MANY MORE INTERNATIONAL DEPARTURES
AND SO EXPANDING OUR DUTY FREE PRESENCE ON CONCOURSE A IS A KEY OPPORTUNITY BOTH TO ENHANCE CUSTOMER SERVICE AND THEIR EXPERIENCE BUT ALSO TO GENERATE REVENUES
THE SAME THING WOULD BE TRUE AT THE END OF CONCOURSE A WHERE WE WOULD HAVE AN OPPORTUNITY TO ENHANCE OUR LOUNGES THERE AND ALSO AT THE SOUTH SATELLITE AND THE SEA LOUNGES ARE A WONDERFUL OPPORTUNITY BOTH TO SERVE CUSTOMERS AND TO MAKE MONEY
AND I TOUCHED UPON THE SOUTH SATELLITE RENOVATION BEFORE
WE'VE GOT THE FEDERAL INSPECTION SERVICES FACILITY DOWN IN THE LOWEST LEVELS OF THE SOUTH SATELLITE
WELL, THOSE ARE ALL MOVING TO THE INTERNATIONAL ARRIVALS FACILITY
WE HAVE THIS TREMENDOUS OPPORTUNITY TO TAKE ADVANTAGE OF THAT SPACE AND YOU SAW SOME PICTURES OF A DUTY-FREE AREA AND ADDITIONAL AIRPORT DINING AND RETAIL SPACE THAT COULD BE CREATED OUT THERE
AGAIN CUSTOMER SERVICE AND REVENUE GENERATING OPPORTUNITIES
BORGEN, COMMISSIONER BOWMAN HAS A QUESTION
YES
THANK YOU SO MUCH, BORGEN
SORRY
JUST GO BACK TO NEXT SLIDE AND YOU DON'T EVEN NEED TO
COULD YOU JUST GIVE US AT SOME POINT A LIST OF THE NOISE PROJECTS? I DON'T SEE IT IN THE APPENDIX
PERHAPS I MISSED IT
WE CAN GIVE YOU A DETAIL OF THOSE NOISE PROJECTS
YES
WE HAVE THE NOISE PROJECTS GROUPED AS A SINGLE LINE ITEM THAT SAYS JUST CHOICE PROGRAM BUT YES, THERE ARE INDIVIDUAL CIPS AND WE CAN SEND YOU THAT LIST
THAT'S GREAT
I'M SURE THE REST OF THE COMMISSION WOULD LIKE TO SEE THOSE AS WELL
GREAT, OKAY
ALL RIGHT
SO WHAT ELSE IS A KEY PART OF OUR PROGRAM? WE WANT TO CONTINUE WITH THE EARLY DESIGN ACTIVITIES ON SAMP ENABLING PROJECTS BECAUSE WHAT WE WANT TO BE ABLE TO DO IS UPON COMPLETION OF THE ENVIRONMENTAL REVIEW OF SAMP, WHICH SHOULD BE DONE BY THE END OF NEXT YEAR, WE WANT TO GIVE GIVE YOU THE OPTION TO BE READY TO MOVE AHEAD WITH THOSE PROJECTS IF THE FORECAST AND IF THE ALIGNMENT OF THINGS SUGGEST THAT THAT WOULD BE THE RIGHT TIME
SO WE WANT TO BE READY SO WE PLAN TO KEEP THOSE GOING
AND THEN FINALLY IS A JEFFREY BROWN WILL TALK ABOUT AT THE END OF THIS PRESENTATION AND WHAT LANCE INDICATED EARLIER, THE IMPORTANCE OF IMPLEMENTING THE PEER REVIEW RECOMMENDATIONS
NEXT SLIDE, PLEASE
WE HAVE ANOTHER QUESTION FROM COMMISSIONER BOWMAN FOLLOWED BY COMMISSIONER FELLEMAN? THANK YOU
I'LL BE REAL BRIEF
BORGEN, TALKING ABOUT SAMP
SO YOU JUST MENTIONED THE KEYWORD FORECAST
SO AT WHAT POINT WHEN YOU GET THROUGH ENVIRONMENTAL REVIEW OF SAMP ARE YOU PLANNING TO DO AN UPDATED PASSENGER FORECAST ? THIS I HADN'T HEARD THAT BEFORE
WELL IT TERMS OF WHAT I WAS REFERRING TO WAS THE FIVE-YEAR LOOK AHEAD THAT I PREVIOUSLY PRESENTED WHICH IS BASICALLY OUR VIEW OF THE RECOVERY
AND THAT'S WHAT I MEAN ABOUT SAYING LIKE WHERE ARE WE ON THAT RECOVERY PATH? AND ARE WE AT A POINT WHERE WE WOULD SAY THAT YOU KNOW, IT'S TIME TO PULL THE TRIGGER AND MOVE TO THE NEXT STEP
I THINK JEFFREY BROWN WANTS TO WEIGH IN HERE
MAY I ASK THAT YOU ALLOW HIM TO RESPOND? THAT'S GREAT
COMMISSIONER BOWMAN, THANKS FOR THE QUESTION
I THINK IT'S APPROPRIATE IF WE TAKE THAT QUESTION AND GO BACK AND SPEAK TO THE ENVIRONMENTAL REVIEW TEAM AND PROVIDE YOU A MORE ACCURATE AND DETAILED RESPONSE
OKAY, AND I'M SURE THE REST OF THE COMMISSION WOULD LIKE TO SEE THAT AS WELL
BUT I THINK IT IS A KEY QUESTION
A FEW OF US HAVE BEEN ASKING FOR A WHILE
IS GIVEN COVID, AGAIN, COMPLIMENTS TO ALL OF THE WORK FOR THE STAFF OVER MANY YEARS IN PUTTING TOGETHER PROJECTIONS AND YOU'VE DONE A GREAT JOB, BUT COVID HAS THROWN A MAJOR WRENCH INTO THAT AND SO I THINK WE'RE ALL CONCERNED ABOUT HOW THAT'S TRACKING MOVING FORWARD WITH CONCERN ABOUT THE SAMP PROJECTS
SO YEAH WOULD LOOK FORWARD TO A DETAILED ANSWER
THANK YOU SO MUCH JEFFREY
BEFORE WE MOVE ON I'M GOING TO SUGGEST WE SKIP FUNDING AND DEFER THAT TO OCTOBER SO THAT WE CAN GET TO SOME OF THE PROJECTS BEFORE THIS MEETING IS OVER TODAY
JUST LIKE TO FOLLOW-UP ON ONE ASPECT OF WHAT COMMISSIONER BOWMAN WAS SAYING
I'M JUST WONDERING WHERE ARE WE NOW ON OUR PROJECTIONS AS COMPARED TO WHEN SAMP WAS FIRST BEING PROPOSED? AND ARE WE GOING TO PUT IN LIKE A PRIORITY TRIGGERS FOR WHERE WE ARE ALONG THE PROJECTION LINE FOR PROJECTS THAT WE SEE ARE OF PRIORITY IN SEQUENCE? I'LL TRY TO ANSWER THAT IN A COUPLE STEPS
LIKE JEFFREY SAID, I THINK IT'S MORE APPROPRIATE FOR THE ENVIRONMENTAL TEAM RESPOND TO YOU, BUT I CAN SAY VERY SIMPLISTICALLY THAT THE CURRENT RECOVERY WOULD BASICALLY PUT US BACK RIGHT ON TRACK WITH THE ORIGINAL SAMP FORECAST
WE'VE GROWN SO MUCH FASTER
WE WERE SO FAR ABOVE IT FOR A FEW YEARS THAT WITH THIS RETRACTION AND THEN RECOVERY, WE'RE GOING TO BE ABOUT EXACTLY WHERE WE THOUGHT WE WOULD BE WHEN THE 2014 FORECAST WAS DONE
THAT'S WHAT I THOUGHT WAS THE UNDERSTANDING
I JUST THINK IT'S IMPORTANT TO TELL THE PUBLIC THAT THAT'S WHAT WE'RE EXPECTING
SO THEN IF THAT'S THE ASSUMPTION, THEN ALL THE PROJECTS PROPOSED IN SAMP WOULD THEN BE IF INDEED THAT'S IT, MOVED ALL THE PROJECTS THAT WERE ORIGINALLY PROPOSED WOULD BE RECOMMENDED TO GO FORWARD
I'M JUST WONDERING IF INDEED THE RECOVERY IS SLOWER, DO WE HAVE TRIGGERS THAT WOULD PRIORITIZE CERTAIN PROJECTS AS THE NUMBERS INCREASE? YEAH, I MEAN, I THINK THAT A MASTER PLAN IS JUST THAT, IT'S A PLAN AND YOU COME FORWARD WITH RECOMMENDATIONS FOR THE SPECIFIC TIMING AND SCOPE THAT'S NEEDED BASED ON WHAT YOU KNOW AT THAT POINT IN TIME
SO MY EXPERIENCE WITH MASTER PLANS LOOKING BACK AT WHAT WE'VE DONE HERE OVER OVER MANY MANY YEARS IS THAT IT'S A WONDERFUL PLAN, BUT IT ALWAYS PLAYS OUT A LITTLE DIFFERENTLY AND IT'S UP TO US TO REASSESS THE CHANGES AND ADJUST AS NEEDED GOING FORWARD
LET'S SKIP THE FUNDING SECTION
WE ONLY HAVE A HALF HOUR LEFT AND I WOULD LIKE TO HAVE THE FOCUS ON PROJECTS AND COMMISSIONER QUESTIONS
VERY GOOD
ALL RIGHT
I'LL TURN IT OVER TO CARRIE
OKAY NEW MEGA PROJECTS
AGAIN, WE USE THIS TERM TO REFERENCE PROJECTS THAT ARE OVER 300 MILLION
NEXT SLIDE, PLEASE
SO C1 BUILDING HAS A BUDGET OF 340 MILLION
WE ARE TAKING A DESIGN TO BUDGET APPROACH BUT ALL IN ALL THIS HAS A GOOD BUSINESS CASE
IT'S CURRENT SCHEDULE SHOWS THAT IT'S COMPLETING BY 2027
SO, YOU KNOW, WELL INTO OUR RECOVERY FOR OUR PROJECTIONS
AND WE ARE CURRENTLY IN PROCUREMENT FOR THE DESIGNER AND THE GC
NEXT SLIDE PLEASE
OKAY
SO BORGEN TALKED ABOUT THIS ONE A LITTLE BIT
MAIN TERMINAL INFRASTRUCTURE PROJECT
THIS IS A VERY LARGE AND VERY COMPLEX INFRASTRUCTURE PROJECT IN THE MAIN TERMINAL AND IT ENCOMPASSES MOST OF THE NON-SECURE SPACE
COMMISSION IS GOING TO HEAR A BRIEFING OF THIS PROJECT ACTUALLY THIS AFTERNOON
IN A NUTSHELL THE MAIN TERMINAL WAS BUILT IN THE 70S AND MOSTLY WITHOUT SPRINKLERS
THE PROJECT WILL PLACE SPRINKLERS AND SMOKE CONTROLS THROUGHOUT THE MAIN TERMINAL AND PROVIDE FOR EMERGENCY POWER GENERATION FOR NOT ONLY THESE AREAS BUT CONCOURSE B, C, AND D AS WELL
THIS ALSO INCLUDES, OF COURSE, AS YOU CAN KIND OF SEE WHAT THE PICTURES, YOU KNOW, NEW CEILINGS NEW LIGHTING, NEW SIGNAGE, ALL OF THAT IS INCLUDED IN THE PROJECT AND ALSO, YOU KNOW, THERE IS STILL QUITE A BIT OF ABATEMENT
WHAT ITS PRICE TAG ON THIS ONE? SO THE PRICE TAG FOR THIS ONE IS SITTING BETWEEN BETWEEN 300 AND 400 MILLION IN OUR RANGE
I THINK WE HAVE IT IN THE CAPITAL PLAN RIGHT AT AT 350
WE STILL NEED QUITE A BIT OF WORK TO BE DONE TO DO SCHEMATIC DESIGN ON IT TO REALLY GET TO THE POINT WHERE WE HAVE A GOOD HANDLE ON WHAT THIS IS BUT THIS IS A VERY IMPACTFUL PROJECT THAT WE NEED TO WORK AROUND OUR OPERATIONS AS BEST WE CAN
SO WE'RE GOING TO COME UP WITH A GOOD PLAN BEFORE WE TOTALLY LOCK IN ON THE ULTIMATE BUDGET FOR THIS ONE
SO CARY, HOW WOULD THIS INTEGRATE WITH ALASKA'S PROPOSED ZONE SIX AND SEVEN UPGRADES THAT ARE ALSO IN THE CATEGORY OF MEGA PROJECT AS I UNDERSTAND? IT WOULD SEEM LIKE THE INFRASTRUCTURE WORK THAT'S PART OF THIS WOULD BE CRITICALLY IMPORTANT TO INTEGRATE WITH THOSE UPGRADES THAT ARE CONTEMPLATED FOR SIX AND SEVEN
YEAH, THAT IS SOMETHING THAT WE ARE WORKING ON RIGHT NOW WITH ALASKA
SO IT IS DEFINITELY TRUE THAT ALASKA RIGHT NOW WOULD BE, THEIR PROJECT WOULD BE BASICALLY COMING FIRST BEFORE THIS MAIN TERMINAL INFRASTRUCTURE PROJECT
AND WOULD NEED TO ENCOMPASS SOME OF THE INFRASTRUCTURE UPGRADES THAT WE'VE BEEN TALKING ABOUT
SPECIFICALLY THE SPRINKLERS AND SMOKE CONTROL ARE A BIG ITEM THAT THAT PROJECT WOULD PROBABLY HAVE TO ACCOMMODATE
SO WE'RE TRYING TO WORK THROUGH HOW THAT IS ACTUALLY DONE BECAUSE THE EARLY STAGE OF THE PROJECT THAT WE CURRENTLY HAVE, WE'RE TRYING TO MAKE SURE THAT WE DON'T GET TOO FAR OUT IN FRONT OF OURSELVES
WE DON'T WANT TO FOLLOW THE PATH OF THE CITY WHERE THEY CONSTANTLY TEARING UP CITY STREETS AND REPLACING UTILITIES AND THEN DOING IT AGAIN A COUPLE YEARS LATER
[LAUGHTER] I JUST HAD TO BRING THAT UP
I ASSUME THAT THAT WAS BEING CONTEMPLATED
I REALIZED 6 AND 7 ARE NOT ON THE LIST CURRENTLY BUT HAVE BEEN ASKED TO BE PUT ON THE LIST OF PRIORITY PROJECTS
THEY ARE ON OUR
WE NOW HAVE THOSE IN THE RECENTLY PROPOSED SECTION
SO IT IS IN OUR CAPITAL PLAN, IT SHOWING UP FOR VISIBILITY PURPOSES IN OUR CAPITAL PLAN
I MEAN, YOU'RE RIGHT
THE IDEA HERE IS TO IF YOU'RE GOING TO, YOU KNOW, MAKE A CHANGE, MAKE IT ONE TIME
DON'T CONTINUE TO UPSET THE OPERATION
DO AS MUCH AS YOU POSSIBLY CAN AT ONE POINT IN TIME
YA
THANK YOU
NEXT SLIDE
SO THE NOISE PROGRAM
THIS REALLY ISN'T QUITE A MEGA PROJECT
IT'S STILL CONSIDERED, YOU KNOW, IN THE 200 TO 300 MILLION DOLLAR RANGE
THEY'RE OUT TO BID ON THEIR FIRST CONDO AND WORKING ON A CONTRACTING PLAN FOR THE WHOLE PROGRAM
THEY'RE WORKING WITH ERP ON THIS
IT'S STILL CONSIDERED TO BE A 7 PLUS YEAR RANGE TO COMPLETE ALL OF THE NOISE WORK
DOES THAT REFLECT THE COMMISSION'S DIRECTION TO PRIORITIZE AND ACCELERATE THE NOISE PROGRAM? BECAUSE I THOUGHT WE WERE GOING TO MOVE MORE QUICKLY ON THIS? I THINK THEY'VE DONE A QUITE A BIT OF PEER REVIEWS ON THIS AND WITH THE AMOUNT OF WORK THAT THIS HAS IN FRONT OF US, YOU KNOW, THE SEVEN YEAR TIME FRAME WAS REALLY WHAT WE COULD SAY
WE ALSO LOOKED AT WHAT IT WOULD MEAN TO GO TO 10 YEARS
IT'S A LITTLE BIT HIGHER COST
WE'RE GOING TO TRY TO MAKE THIS HAPPEN IN AT LEAST A SEVEN YEAR IF WE CAN
WE WILL SPEED THIS UP AS MUCH AS WE POSSIBLY CAN BUT THAT'S WHAT THE PEER-REVIEW BASICALLY CAME BACK WITH
COMMISSIONER STEINBREUCK, MAY I HAVE A FOLLOW UP QUESTION? PLEASE
CARRIE
THANK YOU FOR THAT ANSWER BUT I WOULD REALLY APPRECIATE IF THE STAFF COULD COME BACK AND PRESENT US WITH OPTIONS ABOUT WHAT TRUE ACCELERATION MEANS AND GIVE US THE ABILITY TO MAKE THAT DECISION
WHETHER IT'S THREE YEARS OR FOUR YEARS SEVEN YEARS 10 YEARS, GIVE US OPTIONS AND SO THAT WE CAN DECIDE IF WE WANT TO BUDGET MONEY TOWARDS DOING IT FASTER
AND IT LOOKS LIKE ARLEN IS PREPARED TO RESPOND TO THAT, COMMISSIONER BOWMAN
THANK YOU AND COMMISSIONER BOWMAN, WE HAVE JUST RECENTLY BEEN THROUGH A PEER-REVIEW DISCUSSION WITH OTHER AIRPORTS AND PMG AND THE NOISE TEAM WILL BE PUTTING TOGETHER A MASTER SCHEDULE AS WELL AS TALKING TO FAA ABOUT POTENTIAL FUNDING
AND YES, WE WOULD LIKE TO COME BACK TO YOU WITH A DISCUSSION OF SCHEDULE
THE ENTIRE TEAM IS WORKING TOWARD THE DIRECTION THAT THE COMMISSION GAVE US EARLIER THIS YEAR
LET'S HAVE A REPORT BACK ON THAT ONE
IF I MIGHT JUST ADD, ARLEN, AS WE'VE SAID A FEW TIMES BEFORE, PLEASE GIVE US OPTIONS NOT JUST BASED ON FUNDING FROM THE AIRPORT, BUT WHAT IT MIGHT LOOK LIKE IF THE COMMISSION MADE THE DECISION TO USE THE GENERAL FUNDS TO FUND SOME OF THESE PROJECTS
THANK YOU
WE WILL DO THAT
THANK YOU
OKAY, NEXT SLIDE
OKAY, SO SOUTH SATELLITE RENOVATION
THIS IS REALLY THE BIGGEST RENEWAL REPLACEMENT PROJECT THAT WE HAVE
WE'VE BEEN MOVING THIS WORK ALONG IN A PHASED APPROACH THAT WE'RE GOING TO KIND OF DESCRIBE
PLANNING TO DO UPGRADES OF CERTAIN ASPECTS OVER A LENGTHY PERIOD OF TIME AND THAT WAS GOING TO START WITH SEISMIC AND STRUCTURAL BUT THIS WOULD REALLY BE SOMEWHAT RIPPING UP PARTS OF THE FACILITY, PUTTING IT BACK TOGETHER, AND THEN AS WE HAD TO DO OTHER PHASES, WE WOULD DO THE SAME THING
THIS WOULD BE VERY COSTLY OVER AN EXTENDED PERIOD OF TIME
WITH COVID AND OUR DEMAND FORECASTS, YOU KNOW, SOMEWHAT EXTENDING OUT FOR A LITTLE BIT HERE, WE FEEL THAT IT IS PRUDENT TO PIVOT IN LAUNCH ON OUR FULL RENOVATION
SO THIS FACILITY WAS BUILT IN THE 70S
IT'S COMING ON 50 YEARS WITH REALLY LIMITED IMPROVEMENTS
AND IT IS EXTREMELY IMPORTANT TO FUTURE WITH INTERNATIONAL TRAFFIC
SO WE'RE CURRENTLY CARRYING A TARGET BUDGET OF 1 BILLION DOLLARS FOR THIS WORK
THAT IS BIGGER THAN THE CURRENT PROJECT, THE IAF
AND IT LOOKS TO ME LIKE YOUR PLANS ARE TO MAYBE RETAINED THE SHELL STRUCTURE, SEISMICALLY UPGRADED IT, BASICALLY RETROFIT EVERYTHING AND IT LOOKS LIKE IT INCLUDES SMALL ADDITIONS PROJECTING OUT
WHAT EXACTLY IS LEFT OF THE ORIGINAL STRUCTURE HERE? SO WE'RE NOT REALLY INCREASING THE FOOTPRINT TOO MUCH HERE FOR THIS ONE
WE ARE CREATING SORT OF SEISMIC BUTTRESSES AROUND THE FACILITY AND WHAT YOU'RE SEEING THERE IS A SORT OF A RENDITION OF SORT OF HOW THOSE BUTTRESSES WORK
HOW YOU'RE SORT OF GATE CONNECTIONS WORK
CURRENTLY OUR RAMPS DOWN FROM OUR LOADING BRIDGES ARE NOT AT ADA CODE, THERE TOO STEEP ACTUALLY
SO THERE'S A LOT OF STUFF THAT WE NEED TO CHANGE
IN THE END WE'VE GOT THE CONCOURSE LEVEL AND THEN THE LEVEL ABOVE IS BASICALLY THE ROOF AND WE'VE GOT CLUBS OR LOUNGES UP THERE
THE PLAN IS TO USE THAT LEVEL ABOVE CONCOURSE TO NOT ONLY PUT LOUNGES BUT ALSO HAVE OUR MECHANICAL IN-HOUSE SPACE UP THERE
WE'RE TRYING TO LIVE WITHIN OUR MEANS HERE ON THIS
ONE OF THE BIG ISSUES FOR SOUTH SATELLITE IS IT HAS TO REMAIN OPERATIONAL THROUGH THE CONSTRUCTION PERIOD AND THAT IS GOING TO BE VERY DIFFICULT FOR US TO DO
SO, WE'RE DEFINITELY GOING TO HAVE TO SHUT DOWN GATES FOR US TO DO THIS WORK
WE'RE ANTICIPATING, YOU KNOW, POTENTIALLY WORKING IN QUADRANTS TO TRY AND GET THIS WORK DONE
BUT THAT'S A LOT OF WHERE THE COST IS GOING TO BE SEEN
IF YOU KIND OF COMPARE TO NORTH SATELLITE, WE WERE ABLE TO BUILD AN EXTENSION FIRST, PUT EVERYBODY INTO THE EXTENSION, AND THEN REBUILD THE THE EXISTING STRUCTURE
AND WE DID THAT BASICALLY WE TOOK IT DOWN TO ITS BONES AND THEN BROUGHT IT BACK
SO THIS HAS A LOT OF THE SAME SORT OF SITUATIONS BOTH NORTH SATELLITES AND SOUTH SATELLITE WERE BUILT AROUND THE SAME TIME
AS FAR AS RENEWAL REPLACEMENT, THEY HAVE THE SAME SORT OF, YOU KNOW EFFECTS
IN THIS ONE, WE'RE NOT GOING TO BE ABLE TO EXPAND THE FACILITY SO WE'RE GOING TO HAVE TO WORK AROUND THE EXISTING OPERATION
OKAY, AND WHAT IS THE TIME FRAME FOR THAT? SO RIGHT NOW WE ARE ANTICIPATING THAT THIS IS GOING TO BE PROBABLY A TEN YEAR PROJECT
WE ARE LOOKING AT IT TO SEE IF WE CAN BRING THAT BACK DOWN TO POTENTIALLY, YOU KNOW, SEVEN OR EIGHT YEARS THROUGH MAYBE ALTERNATIVE, YOU KNOW DELIVERY METHODS
DESIGN-BUILD COULD BE ONE OF THOSE
SO WE'RE LOOKING AT THAT RIGHT NOW
WE PLAN TO ACTUALLY COME TO YOU GUYS IN YOU KNOW IN THE MIDDLE OF NEXT YEAR TO REALLY SHOW YOU OUR FULL-FLEDGED PLAN ON HOW THIS IS GOING TO WORK, BUT WE'LL HAVE TO DO MORE SCHEMATIC DESIGN
WE'VE GOT, AS LANCE KIND OF DISCUSSED IN THE VISION, WE'VE GOT THAT IN THERE FOR HOW WE'RE GOING TO MOVE IT FORWARD BUT WANT TO DO MORE WORK ON IT
ALL RIGHT
THANKS AND THEN COMMISSIONER CALKINS HAS A QUESTION
YEAH, THANKS CARRIE
THIS IS THIS IS NEWSWORTHY, CERTAINLY
I HAVE A FEW QUESTIONS ABOUT KIND OF THE INTENT OF THE REMODEL FOR THE SOUTH SATELLITE
I THINK FIRST WOULD BE WOULD THIS ACCOMMODATE EITHER MORE GATES OR MORE WIDE BODIES? SO UNFORTUNATELY, NO, WE DON'T HAVE THE ABILITY TO EXPAND THE AMOUNT OF AIRCRAFT THAT WE PUT AROUND THAT FACILITY WITHOUT YOU KNOW, HARMING OUR TAXIWAYS OR OUR TAXI LANES THAT ARE AROUND THE FACILITY RIGHT NOW
SO REALISTICALLY WE CAN'T ADD MORE WIDE BODIES TO WHAT WE HAVE
THIS REALLY BECOMES A RENEWAL REPLACEMENT
YOU KNOW, IF WE DON'T DO THIS WORK, THE FACILITIES ALREADY HAVING CERTAIN FAILURES IN IT
THOSE FAILURES WORK WILL CONTINUE AND WE WILL POTENTIALLY RISK LOSING GATES BECAUSE OF THOSE SITUATIONS
IT'S A 50 YEAR OLD FACILITY AND IT NEEDS A MAJOR RENOVATION
SECOND QUESTION IS, AND LOOKS LIKE JEFFREY MAY WANT TO RESPOND TO THAT
SECOND QUESTION IS WITH THIS EXPANSION OF POTENTIAL LEASABLE SPACE, 1 BILLION IS AN EYE-POPPING FIGURE, BUT DO WE ANTICIPATE ADDITIONAL REVENUES THAT WOULD HELP TO OFFSET SOME OF THOSE CONSTRUCTION COSTS? DEFINITELY
JEFF, IF YOU WANT TO RESPOND FIRST, AND THEN I CAN ADD ANY COMMENTS
COMMISSIONER CALKINS, THE PRIMARY REASON FOR DOING THIS PROJECT IS ASSET PRESERVATION
FIRST FOR CODE COMPLIANCE, SEISMIC UPGRADE OF THE FACILITY, AND SECOND AS BORGEN SAID BEFORE WAS REVENUE GENERATION
TO YOUR POINT, YES, WE GENERATE ADDITIONAL REVENUE BY THIS EXPANSION, BUT I DOUBT IT WOULD PAY FOR THE ENTIRE PROJECT [INAUDIBLE] THAT PERIOD
AND FINALLY, I KNOW THAT IN OUR CONVERSATION WITH CARRIERS, THE SOUTH SATELLITE IS BECAUSE IT DOESN'T MEASURE UP TO THE OTHER FACILITIES, PARTICULARLY OUR NEW A GATES, THERE HAS BEEN QUITE A BIT OF JOCKEYING OVER KIND OF WHO IS RELEGATED TO SOUTH SATELLITE
WHEN CONVERSATIONS HAVE OCCURRED SO FAR WITH CARRIERS IS THERE INTEREST, ARE THEY ENCOURAGING US TO DO THIS, ARE THEY RESERVING JUDGEMENT SO FAR? WHAT KIND OF INITIAL READ ARE WE GETTING FROM THE CARRIERS? I THINK THE CARRIERS WILL BE VERY INTERESTED IN PURSUING THIS WORK
I THINK IF YOU GO BACK TO 2015 ON THIS QUESTION, I THINK COMMISSIONER BOWMAN WAS ON THE COMMISSION BACK THEN
THERE WAS SOME COMMITMENT, VERBAL COMMITMENT MADE BY COMMISSION TO UPGRADE THIS FACILITY AS A PART OF THE IAF
SO UNLESS THINGS CHANGED, I THINK THEY ARE, THE CARRIERS, STILL INTERESTED IN DOING THIS WORK
AND DO WE THINK IT WOULD ENCOURAGE ADDITIONAL INTERNATIONAL FLIGHTS? I MEAN IS A FACILITY LIKE THIS ENOUGH TO ENTICE SOMEBODY AWAY FROM YVR OR SFO? I DON'T KNOW THE ANSWER TO THAT
I'LL LEAVE THAT TO PROBABLY SERVICE DEVELOPMENT OR PROBABLY LANCE
I'M PROBABLY NOT THE BEST PERSON FOR THAT QUESTION
BUT GO BACK TO ONE OF THE FIRST QUESTIONS, SORRY
I FORGOT
IN TERMS OF GATE CAPACITY, PER CURRENT FAA GUIDELINES THERE'S A LIKELIHOOD THAT WE COULD PROBABLY LOSE A GATE BECAUSE WE ARE CURRENTLY ENCROACHING THE TAXIWAY IN TERMS OF SEPARATION
SO, YOU KNOW, WE WORK WITH FAA TO SEE IF WE COULD PRESERVE THAT GATE
BUT IF YOU FOLLOW THE FAA, [INAUDIBLE] OKAY, THANK YOU
YEAH COMMISSIONER
I DON'T KNOW THAT THE JUST UPGRADING THE FACILITY ITSELF WOULD ATTRACT ADDITIONAL CARRIERS
THEY'RE GOING TO MAKE DECISIONS, YOU KNOW, BASED ON WHETHER THAT WRITER, THAT WROTE, IS GOING TO BE PROFITABLE WHETHER THEY CAN HAVE THE LOAD FACTORS ON THE YIELDS TO MAKE A FLIGHT PROFITABLE
THE FACILITY BEING UPGRADED THOUGH, WILL PROVIDE A LEVEL OF SERVICE THAT THE AIRLINES WOULD LIKE THEIR PASSENGERS TO EXPERIENCE AND AS JEFFREY AND BORGEN POINTED OUT AND CARRIE EARLIER, THIS FACILITY IS OUT OF CODE BASICALLY
WE REALLY NEED TO GET IT UPGRADED AS FROM A CODE PERSPECTIVE
BUT RATHER THAN THIS DO A CODE UPGRADE, WE ALSO NEED TO DO THE AESTHETICS AND THE LEVEL OF SERVICE UPGRADES AS WELL
AND COMMISSIONER BOWMAN AS WELL HAS A QUESTION
THANK YOU
JUST A QUICK QUESTION AS A FOLLOW-UP
IN TERMS OF INTEREST OF THE CARRIERS, I WOULD FEEL MORE COMFORTABLE IF WE HAD SOME CONFIRMATION
IT DOESN'T NECESSARILY HAVE TO BE AN MII BUT AT LEAST GOING BACK AND UNDERSTANDING
YOU'RE RIGHT JEFFREY, THERE WAS A TACTIC AGREEMENT WHEN WE APPROVE THE IAF INITIALLY THAT SOUTH SATELLITE WAS GOING TO BE THE NEXT BIG PROJECT UNDERTAKEN, BUT IT WOULD MAKE ME FEEL BETTER AND I'M SURE MY COLLEAGUES AS WELL IF WE ACTUALLY HEARD CONFIRMATION FROM THE MAJOR CARRIERS IF THAT WAS STILL THE CASE
AS WE KNOW THINGS CHANGE RAPIDLY IN THE INDUSTRY AND WE HEAR FREQUENTLY THAT THEIR INDIVIDUAL PRIORITIES HAVE CHANGED AS WELL
SO I'D REALLY APPRECIATE A LITTLE BIT MORE SPECIFIC FEEDBACK ABOUT WHAT THE CARRIERS THINK OF THIS PROJECT
GOOD QUESTIONS, AND I WOULD ADD ALSO JUST TO NOTE THAT THE DESIGN-BUILD, I THINK, PROCUREMENT APPROACH, DID NOT IN FACT RESULT IN ACCELERATING THE IAF PROJECT
IT CREATED ALL KINDS OF PROBLEMS THAT I THINK MAY IN FACT HAVE DECELERATED THE PROJECT
THAT'S JUST MY VIEW
SO I WOULD QUESTION THE JUSTIFICATION OF THAT TRACK FOR PROCUREMENT
AND THEN SECONDLY, I WOULD EXPECT TO SEE SIGNIFICANT IMPROVEMENTS WITH REGARD IN THIS FACILITY WITH THIS AMOUNT OF MONEY TO THROUGHPU,T EFFICIENCY, ACCESSIBILITY, QUALITY OF TRAVELER EXPERIENCE, MECHANICAL SYSTEMS, ENERGY CONSERVATION, AND THE REST
IT'S A HUGE AMOUNT OF MONEY
IT SOUNDS TO ME LIKE IT'S THE BIGGEST SINGLE PROJECT UNDERTAKING YET OR IT WOULD BE SO
I THINK IT NEEDS A VERY SOLID JUSTIFICATION AND A THOROUGH KIND OF EXAMINATION OF WHAT THE OBJECTIVES ARE
I RECOGNIZE THE BUILDING IS OBSOLETE AND I THINK I EVEN WORKED ON IT AS AN INTERN IN THE 1970S WHEN I WAS WORKING FOR ONE OF OUR LOCAL ARCHITECTURAL FIRMS ON AIRPORT FACILITIES
SO IT IS OLD
I GUESS THAT SPEAKS TO ME AS WELL
BUT ANYWAY, THOSE ARE SOME OF MY COMMENTS ON THIS
AND THEN CALKINS HAS ANOTHER QUICK QUESTION
AND FEEL FREE TO RESPOND OR FOLLOW UP LATER
I'LL JUMP BACK IN
THIS QUESTION ACTUALLY KIND OF POPPED INTO MY HEAD AT THE VERY OUTSET OF THE MEETING AS WE'RE WATCHING THE VIDEO
I KNOW THAT ONE CONCERN THAT WE'VE HEARD FROM CARRIERS IS AS WE LOOK AT THE TOTALITY OF PROJECTS THAT WE'RE CONSIDERING FOR THE AIRPORT ONE CONCERN IS THIS METRIC THAT THEY, IT'S MINIMUM CONNECTION TIME, MCT
AN EXPERT CAN CORRECT ME ON THAT
BUT DO YOU THINK IT IS A CONCERN
ESSENTIALLY, FROM MY UNDERSTANDING, YOU KNOW, YOU GET OFF ONE PLANE AND YOU NEED TO MAKE A CONNECTION TO SOMEWHERE
AND SO YOU KNOW, WHAT IS THE PROSPECT OF SOMEBODY WHO'S FLYING IN ARRIVING FROM AN INTERNATIONAL FLIGHT AT THE SOUTH SATELLITE AND THEN DEPARTING FROM SAY THE NORTH SATELLITE OR THE NEW NORTH TERMINAL
AND THINKING ABOUT WAYS THAT WE CAN MINIMIZE CONFUSION FOR THE PASSENGER, MINIMIZE THAT CONNECTION TIME
AND SO I GUESS I WOULD LOVE TO HAVE A LITTLE BIT OF INSIGHT FROM STAFF ON THAT BOTH WITH REGARD TO THIS PARTICULAR SOUTH SATELLITE RENOVATION
ARE THERE WAYS IN WHICH WE CAN DEVELOP THIS PROJECT SO THAT IT DOES REDUCE CONNECTION TIME? BUT THEN ALSO, YOU KNOW IN THE IN THE WHOLE UNIVERSE OF OUR AIRPORT, WHAT ARE WE DOING TO ENSURE THAT PASSENGERS WHO ARE GETTING OFF ONE PLANE AND NEED TO MAKE A CONNECTION OR ABLE TO DO SO QUICKLY AND EFFICIENTLY? WHETHER THAT'S THROUGH THE USE OF PERSONAL TECH WAYFINDING OR WAYFINDING THE AIRPORT OR ENHANCED CUSTOMER SERVICE, RECOGNIZING THE PASSENGERS THAT ARE ARRIVING IN ENSURING THAT THEY HAVE, YOU KNOW, ONE-ON-ONE GUIDANCE FOR THE TRICKY CONNECTIONS
I JUST DON'T WANT US TO BE IN A SITUATION WHERE WE BECOME AN AIRPORT THAT PEOPLE JUST NOTORIOUSLY THINK OF AS HARD TO NAVIGATE
OKAY, SO WE'VE GOT LESS THAN SEVEN MINUTES LEFT I THINK SO I WANT TO RESPOND IN SOME WAYS TO THAT AND I THINK CAN RESPOND TO SOME OF THAT AND CARRIE THAT CAN DEFINITELY BE A TAKE HOME
YEAH
I THINK THAT'S A BIG QUESTION SO FEEL FREE TO TAKE THAT AS A TAKE HOME AND WE CAN RETURN TO IT
OKAY, NO PROBLEM
THANKS
I DO WANT TO RESPOND A LITTLE BIT TO COMMISSIONER STEINBREUCK HERE
WE ALSO SEE THE ISSUES WITH DESIGN-BUILD
WE HAVE THOSE SAME CONCERNS
ALL RIGHT, YOU KNOW, WE HAVE HAD SUCCESSES WITH A TRADITIONAL DESIGN BUILD AND I DON'T WANT TO LOSE THAT BUT THIS IS AN OPERATING FACILITY AND THAT'S WHERE WE HAVE A LITTLE BIT MORE ISSUES
SO THERE'LL BE MORE TO COME ON THAT
AND THEN ALL OF THE POINTS THAT COMMISSIONER STEINBREUCK DISCUSSED ABOUT YOU KNOW, EVERYTHING BEING INVOLVED AS FAR AS THE ENVIRONMENTAL AND THE EFFICIENCIES AND THE PASSENGER PROCESSING ALL OF THAT, LEVEL OF SERVICE, ALL OF THAT IS INCLUDED IN THIS
I WANT TO MOVE ON TO OUR RECENTLY PROPOSED PROJECTS
NEXT SLIDE, PLEASE
SO WITHIN THE LAST SEVERAL WEEKS WE'VE HAD SOME PROJECTS THAT HAVE BEEN WORKING ON FOR SOME TIME
THESE PROJECTS ARE IMPORTANT AND HAVE STRONG MOMENTUM AND OUR DIRECTORS FEEL THAT THEY NEED TO HAVE VISIBILITY IN THE CAPITAL PLANS SINCE THEY WILL BE PROGRESSING FORWARD
STILL WE HAVE QUITE A BIT OF WORK TO DO TO IRON OUT THE DETAILS OF THESE ONES
SO THIS IS THE ZONE SIX AND SEVEN RENOVATION
THIS IS THE PROJECT THAT WE'VE BEEN WORKING ON ALONG WITH ALASKA TO RENOVATE THE NORTH END OF THE TICKET LOBBY
THE CONCEPT FOCUSES ON BETTER PASSENGER EXPERIENCE AND MORE MOBILE TICKETING PROCESS
THE SECURITY CHECKPOINT AT THE NORTH END IS ALSO RECONFIGURED FOR A BETTER FLOW
WE'RE CURRENTLY WORKING WITH THEM TO ENHANCE THEIR CONCEPT TO MAKE SURE IT PROVIDES THE NEEDED EFFICIENCIES AND BENEFITS FOR THE TICKET LOBBY AS A WHOLE
WE CAN GO TO THE NEXT SLIDE IF THERE ARE NO QUESTIONS
SO AIRLINE REALIGNMENT
SO AIRLINE REALIGNMENT SCENARIOS CAME TO A CONCLUSION LAST YEAR
WE ACTUALLY PLACED THIS PROGRAM INTO THE CAPITAL PLAN THIS YEAR
BUT WITH COVID AND THE SIGNIFICANT DECREASE IN INTERNATIONAL DEMAND, WE PUT THE PROGRAM ON HOLD
UNDERSTANDING OUR PROJECTIONS FOR GROWTH IN THE FACT THAT THIS WORK WILL TAKE UNTIL 2024 TO COMPLETE TO DO THE FULL REALIGNMENT, IT WAS IMPORTANT TO GET THIS BACK INTO THE CAPITAL PLAN
AND AS A SIDE BENEFIT WITH WHAT WE'RE TALKING ABOUT WITH SOUTH SATELLITE, IT'S ALSO AN IMPORTANT ELEMENT FOR THE SOUTH SATELLITE WORK TO DO THIS REALIGNMENT
IT WILL HELP US WITH THE OPERATIONAL IMPACT FOR DOING THE CONSTRUCTION FOR THE SOUTH SATELLITE
BEFORE WE MOVE ON WE'VE GOT SEVERAL QUESTIONS, INCLUDING ONE OR TWO FROM ME, BUT I SEE SOME OTHER COMMISSIONERS HAVE THEIR HANDS UP
COMMISSIONER FELLEMAN AND THEN BOWMAN AND THEN I'LL ASK A QUESTION
I SEE THAT WE'RE RUNNING OUT OF TIME
I HAD A COUPLE QUESTIONS THAT WERE SORT OF LEADING INTO THIS BEFORE
ONE OF THE LARGER CATEGORIES WAS BUSINESS NEED
WHICH SEEMS TO GO THROUGH ALL OF THIS AND I DON'T KNOW IF THAT'S JUST A STAFFING QUESTION AND WHETHER THAT WILL VARY BASED ON THE TYPE OF CONTRACTING THAT WE SPOKE ABOUT BEFORE? AND JUST IN THE VERY BEGINNING WHEN WE SAW THE FLY THROUGH IT WAS THE FIRST TIME I SAW A G TAP BUILDING AND I DON'T KNOW WHETHER THAT'S IN SAMP OR WHEN THAT'S ENVISIONED BUT IT WAS A VERY INTRIGUING AND CERTAINLY BEHOOVES US TO HAVE THE FULL G TAP BRIEFING BEFORE THAT
THOSE ARE THE FEW QUESTIONS ABOUT THE BUSINESS NEED AND WHERE G-TAP IS ON THE SCHEDULE
I REALIZE THAT WE STILL HAVE A LOT OF QUESTIONS AND WE'RE JUST ABOUT OUT OF TIME
I'M TOLD WE HAVE JUST LESS THAN FIVE MINUTES
I'D LIKE TO CONTINUE THIS AT THE OCTOBER 13TH BUDGET SESSION AND WE WANT TO BE SURE THE COMMISSIONERS GET AN OPPORTUNITY TO RESPOND TO ALL OF THE COMPLEXITIES OF PROJECTS THAT WE'RE HEARING ABOUT
SO BUSINESSES NEED IS REALLY IMPORTANT TO KNOW WHAT IT ACTUALLY ENTAILS
YEAH
MY QUESTION WILL BE REALLY BRIEF, MR STEINBREUCK
AND I THINK IT'LL BE GOOD FOR EVERYBODY
COULD YOU JUST LET US KNOW? STEPHANIE, I NEED AN ANSWER TO WHAT IS BUSINESS
SORRY
SORRY
BUSINESS NEED, YOU KNOW, THAT ENCOMPASSES CUSTOMER EXPERIENCE, THAT ENCOMPASSES REVENUE GENERATION, THAT ENCOMPASSES, YOU KNOW ADDITIONAL THROUGHPUT, YOU KNOW CAPACITY
THERE'S AS YOU KNOW ADR WORK INCLUDED IN THAT, THERE'S A LOT OF TENANT REQUESTS IN THAT
QUITE A FEW OF OUR AVIATION GOALS ARE IN BUSINESS NEED BUT IT IS, IN THE END, SOMEWHAT A DISCRETIONARY TYPE OF DRIVER
IT SEEMS TO BE AN INADEQUATE CATEGORY AND MAYBE IT NEEDS ANOTHER BREAKDOWN LIKE REPAIR AND REPLACE
LET'S TRY TO KEEP IT MOVING ALONG
COMMISSIONER BOWMAN
I'LL KEEP IT REALLY BRIEF
THANK YOU
I JUST LIKE TO GET FROM STAFF MORE DETAIL ON WHAT YOU LIST AS PENDING AUTHORIZATION
WE'VE DISCUSSED THE SOUTH SATELLITE, YOU JUST MENTIONED ZONE SIX AND SEVEN
I'D LIKE TO UNDERSTAND WHAT THE COST IS FOR AIRLINE REALIGNMENT, THE LOUNGES, AND THEN THE OTHER PROJECTS THAT YOU HAVE THAT ARE JUST ALL LISTED AS OTHER PENDING CAPITAL PROJECTS
AND FOR 2021 IT'S LISTED AT 31 MILLION AND OVER 1 BILLION DOLLARS OVER THE FIVE-YEAR CIP
SO I THINK WE NEED TO HAVE MORE VISIBILITY AS TO WHAT THOSE PROJECTS ARE
THANK YOU, AND I WOULD ADD REGARDING REALIGNMENT THAT I THINK MAYBE THERE'S SOME INTERIM OPTIONS IN TERMS OF MAYBE GETTING THE DESIGN WORK GOING IN A VAST 2024
IT WOULD SEEM TO ME THAT THIS IS A TIME-SENSITIVE PROJECT GIVEN THAT THE IAF IS OPENING SOON AND WE OUGHT TO HAVE THAT ALIGNMENT IN PLACE AND SYNC WITH THE NEW FACILITY
SO MAYBE THERE'S A WAY TO GET IT STARTED IN ADVANCE OF DOING THE FULL CONSTRUCTION BUILD OUT PRIOR TO 2024
I'VE GOT TO ASK COMMISSIONERS TO COLLECT THEIR QUESTIONS AND GET THEM THROUGH TO STAFF SO WE CAN TAKE THIS UP AGAIN IN OCTOBER ON THE OCTOBER 13TH MEETING
OKAY, I THINK WE'RE ABOUT OUT OF TIME HERE
WE'VE GOT ANOTHER MEETING COMING UP IN THREE MINUTES
OR IN FIVE MINUTES
SO COMMISSIONER STEINBREUCK I GUESS WE COULD DO THE PURVIEW OF THE OCTOBER 13TH OR SEPARATELY? I THINK WE SHOULD PICK UP WHERE WE LEFT OFF HERE IN THE OCTOBER 13 MEETING
COMMISSIONERS, DO YOU AGREE WITH THAT? I THINK THAT WOULD MAKE SENSE? WE REALLY NEED TO DIVE DEEPLY INTO THIS
THIS HAS BEEN A GOOD PRIMER AND INTRODUCTION TO ALL THAT WE'VE GOT ON THE BOOKS HERE
MRSTEINBREUCK, THIS IS JEFFREY BROWN
IF POSSIBLE, THERE WAS A QUESTION ASKED BY COMMISSIONER BOWMAN REGARDING FORECAST
I THINK SINCE IT'S A PUBLIC MEETING IT'S IMPORTANT WE RESPOND TO THIS KNOWLEDGE
YEAH, GO RIGHT AHEAD
ARLEN CAN RESPOND
ARLEN CAN YOU RESPOND TO THAT QUESTION? SURE
I'M HAPPY TO GIVE IT A SHOT
SO THERE WERE A COUPLE OF QUESTIONS
ONE WAS WILL WE DO AN UPDATED PASSENGER FORECAST AFTER THE ENVIRONMENTAL REVIEW? AND THE SECOND QUESTION TO PARAPHRASE IS SOMETHING LIKE IF GROWTH IS EXPECTED TO BE SLOWER THAN THE ORIGINAL SAMP FORECAST, WOULD THERE BE TRIGGERS FOR COMMISSION APPROVAL OF PROJECTS? SO AS WE GET TOWARD THE END OF THE ENVIRONMENTAL REVIEW PROCESS, WHICH IS AT THE END OF 2021, WE WOULD BE THINKING ABOUT THE ITEMS AND PROJECTS THAT THE TEAM WOULD BRING TO COMMISSIONERS FOR APPROVAL AND HOW WE WOULD PRESENT THOSE ITEMS AND ACTIVITY TRENDS WOULD BE ONE COMPONENT, NOT THE ONLY THING, BUT ONE COMPONENT OF WHAT WE WOULD CONSIDER
SO I WOULD IMAGINE THAT THROUGHOUT THE COMING YEAR WE'RE GOING TO BE COORDINATING WITH BUSINESS INTELLIGENCE AND, IF WE NEED TO, OUTSIDE EXPERTS TO UNDERSTAND EXPECTED PASSENGER AND OPERATIONAL DEMAND
BY THE END OF 2021, WE MAY HAVE A CLEARER IDEA OF THE ARC OF RECOVERY, OR WE MIGHT NOT
IT'S JUST HARD TO SAY
AT THIS POINT, BUT IF IT IF IT LOOKS LIKE IT'S CLEAR THAT WE'RE GOING TO BE BACK ON TRACK TO REACH 56 MILLION PASSENGERS IN APPROXIMATELY 2027 WE WOULD LIKELY WANT TO CONTINUE WITH A REQUEST FOR APPROVAL OF THE SAMP NEAR TERM PROJECTS
IF NOT, IF RECOVERY IS EXPECTED TO BE SLOWER THAN THAT, THEN I THINK THE IDEA OF TRIGGERS IS A VERY GOOD ONE AND WE WOULD HAVE TO THINK ABOUT WHAT THOSE TRIGGERS MIGHT BE AND HOW THEY WOULD BE PRESENTED
SO I THAT'S ABOUT ALL I CAN SAY FOR NOW
I HOPE THAT'S HELPFUL
SO ADAPTIVE MANAGEMENT MAY BE IN THE OFFING HERE IT SOUNDS LIKE
YES, THAT'S A GREAT TERM
THANK YOU
WE NEED TO BREAK NOW
I'D LIKE TO CLOSE THIS MEETING, RESUME ON OCTOBER 13TH, AND WE WILL TAKE A 10 MINUTE BREAK
WE'LL GO FIVE MINUTES LATE ON THE EXEC SESSION
11:05
DOES THAT SOUND ACCEPTABLE TO EVERYONE? OKAY
THANK YOU.

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