The Regular meeting scheduled for 2020-10-13 at Remote

Transcript

The Regular meeting scheduled for 2020-10-13 at Remote

OKAY, THIS IS COMMISSION PRESIDENT PETER STEINBRUECK RECONVENING THE REGULAR MEETING OF OCTOBER 13TH 2020
THE TIME IS NOW 12:03 P.M
WE'RE MEETING REMOTELY TODAY VIA SKYPE TEAMS TO COMPLY WITH THE GOVERNOR'S SAFE START AND STAY HEALTHY ORDER AND in ACCORDANCE WITH THE PROCLAMATION 2028
PRESENT WITH ME TODAY ARE COMMISSIONERS BOWMAN, CALKINS, CHO, AND FELLEMAN
I WILL ASK THAT WE DO A ROLL CALL OF ALL COMMISSIONERS TO ENSURE EVERYONE IS ONLINE
MICHELLE HART, CLERK
THANK YOU
BEGINNING WITH COMMISSIONER BOWMAN
PRESENT
THANK YOU COMMISSIONER CALKINS
HERE
THANK YOU
COMMISSIONER CHO
PRESENT
THANK YOU
COMMISSIONER FELLEMAN
I'M HERE FOR NOW
THANK YOU AND COMMISSIONER STEINBREUCK IS OF COURSE WITH US TODAY
OKAY, THANK YOU
TODAY'S MEETING IS STRUCTURED FOR A VIRTUAL FORMAT
WE'VE MADE SPECIAL ARRANGEMENTS TO PROVIDE FOR REMOTE PARTICIPATION FOR ALL OUR STAFF AND COMMISSIONERS
LATER WE WILL BE TAKING PUBLIC COMMENT FROM PEOPLE WHO ARE PARTICIPATING BY TEAMS WHO SIGNED UP TO SPEAK
ALSO, PLEASE NOTE THAT ALL VOTES TODAY WILL BE TAKEN BY ROLL CALL METHOD SINCE ALL COMMISSIONERS ARE PARTICIPATING REMOTELY
THAT MEANS EACH VOTE THE CLERK WILL CALL EACH COMMISSIONERS NAME
COMMISSIONERS ON THE TEAMS WILL MAKE SURE THEY ARE UNMUTED AND THEN ANSWER YAY OR NAY YES OR NO
BECAUSE COMMISSIONERS ON THE LINE ARE NOT FULLY IN CONTROL OF SOUND, WE WILL TAKE ALL VOTES TODAY IN THIS MANNER INCLUDING OUR CONSENT AGENDA
TO BE EQUITABLE WE WILL ASK ALL COMMISSIONERS SO TO SPEAK IN TURN AND WAIT TO BE RECOGNIZED BEFORE SPEAKING AS MUCH AS POSSIBLE
WE BEGIN TODAY'S MEETING WITH ACKNOWLEDGING THE INDIGENOUS PEOPLES OF THE DUWAMISH AND COASTAL SALISH WHO HAVE STEWARDED THESE BEAUTIFUL LANDS AND WATER SINCE TIME IMMEMORIAL
WE MUST COMMIT TO DOING THE SAME FOR THE PLANET FOR GENERATIONS TO COME
THIS MEETING IS BEING DIGITALLY RECORDED AND MAY BE VIEWED OR HEARD AT ANY TIME ON THE PORT'S WEBSITE AND MAYBE REBROADCAST BY KING COUNTY TELEVISION
PLACE STAND OR JOIN US FOR THE PLEDGE OF ALLEGIANCE
I PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS ONE NATION UNDER GOD INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL
THE NEXT ITEM OF BUSINESS IS THE APPROVAL OF THE AGENDA
CLERK, PLEASE UNMUTE THE COMMISSIONERS
COMMISSIONERS ON THE LINE, PLEASE UNMUTE YOURSELVES
I'M GOING TO ASK EACH COMMISSIONER IN TURN IF THEY HAVE ANY QUESTIONS ANY MOTIONS TO REARRANGE ORDERS OF THE DAY
IF YOU DO I WILL ASK FOR A SECOND IF IT'S NEEDED
PLEASE RESPOND WHEN YOU'RE CALLED ON
IF YOU HAVE NO CHANGES TO SAY NONE
CLERK? THANK YOU
COMMISSIONER FELLEMAN
NO CHANGES
THANK YOU
COMMISSIONER CHO
OH, SO YOU SWITCHED IT UP ON ME? [LAUGHTER] NOPE
YES, WE DO THAT
COMMISSIONER CALKINS
NONE
THANK YOU
COMMISSIONER BOWMAN
YES
I'D LIKE TO MAKE A MOTION TO MOVE ITEM 8A TO THE BOTTOM OF THE AGENDA
AND THE PURPOSE FOR THAT IS THAT I THINK IT SHOULD BE ON THE AGENDA
BUT I WOULD LIKE TO I THINK FOR THE PUBLIC'S INTEREST HEARING ABOUT OUR BUDGETS IS PROBABLY THE FIRST ORDER OF BUSINESS AND THAT THE COMMISSION BYLAWS COULD BE DISCUSSED AT THE END OF THE AGENDA
IS THERE A SECOND? SECONDED
OKAY, IT'S BEEN MOVED AND SECONDED
CLERK, PLEASE CALL THE ROLL ON THE MOTION TO AMEND THE AGENDA
THANK YOU
AND THIS IS TO MOVE ITEM 8A TO THE END OF THE AGENDA TODAY
COMMISSIONER FELLEMAN
AYE
THANK YOU
COMMISSIONER CHO
AYE
THANK YOU
COMMISSIONER CALKINS
AYE
THANK YOU
COMMISSIONER BOWMAN
AYE
THANK YOU
COMMISSIONER STEINBREUCK
I ACTUALLY THINK THAT THE AGENDA ITEM IS IMPORTANT TO MEMBERS OF THE PUBLIC AS WELL
OUR BYLAWS GOVERN HOW WE OPERATE ON THE PORT COMMISSION AND THERE ARE LOTS OF ISSUES THERE THAT ARE BEING RESPONDED TO THROUGH THIS VERY LENGTHY PROCESS THAT I THINK WOULD BE OF PUBLIC INTEREST
SO I'LL VOTE NO ON MOVING THE AGENDA ITEM
THANK YOU COMMISSIONER
STEINBREUCK
THERE ARE FOUR YESES AND ONE NO
THIS MOTION PASSES TO REORDER THE AGENDA
THE AMENDMENT IS PASSED AND THE ORDER OF THE AGENDA IS REARRANGED ACCORDINGLY
AND NOW WE'LL MOVE TO A VOTE ON APPROVAL OF THE AGENDA AS AMENDED
COMMISSIONER STEINBREUCK
YES
THANK YOU
WE'LL BEGIN WITH COMMISSIONER FELLEMAN
SO APPROVED
THANK YOU
COMMISSIONER CHO FOR APPROVAL OF THE AGENDA AS AMENDED
AYE
THANK YOU
COMMISSIONER CALKINS
AYE
THANK YOU
COMMISSIONER BOWMAN
AYE
THANK YOU
COMMISSIONER STEINBREUCK
YES
THANK YOU
THAT MOTION PASSES
THE AGENDA IS APPROVED
MOVING NEXT TO THE EXECUTIVE DIRECTOR'S REPORT
EXECUTIVE DIRECTOR? GOOD AFTERNOON COMMISSIONERS
I'D LIKE TO BEGIN MY REMARKS BY ACKNOWLEDGING INDIGENOUS PEOPLES DAY, WHICH WAS CELEBRATED YESTERDAY, OCTOBER 12TH
ALTHOUGH THIS DAY IS ACKNOWLEDGED AND CELEBRATED ANNUALLY, WE MUST NOT LET THIS HOLIDAY ABSOLVE US FROM GUILT DUE TO COLONIALISM
INSTEAD WE MUST USE THIS DAY TO ACKNOWLEDGE THE HARMFUL IMPACTS OF COLONIALISM HERE IN THE UNITED STATES
PEOPLE HAVE STEWARDED THESE LANDS AS SINCE TIME IMMEMORIAL INCREASINGLY LIFTING UP THEIR COMMUNITIES AND EMPOWERING WAYS THAT BENEFIT NOT ONLY WASHINGTON'S TRIBES, BUT ALSO THE ENTIRE PACIFIC NORTHWEST REGION
WE MUST USE THIS COMMEMORATION AS A REMINDER OF THE TRADITIONAL RESPONSIBLE ENVIRONMENTAL STEWARDSHIP AND HONOR THE CONTRIBUTIONS OF INDIGENOUS PEOPLE EVERYWHERE
COMMISSIONERS, AS WE MOVE INTO THE FOURTH QUARTER OF 2020, I'M PLEASED TO REPORT THAT OUR THIRD QUARTER REVENUES ARE IN LINE WITH OUR REVISED BUDGET THAT YOU APPROVED AND THE EXPENSES ARE RUNNING BELOW BUDGET
STAFF ARE HARD AT WORK MEASURING OUR PERFORMANCE AGAINST OUR BUDGET, UPDATING FORECASTS, AND MAKING REDUCTIONS AS NECESSARY
YOU'LL RECEIVE A COMPREHENSIVE BRIEFING ON OUR THIRD QUARTER FINANCIAL PERFORMANCE LATER THIS YEAR
THERE ARE MANY GREAT THINGS HAPPENING AT THE PORT OF SEATTLE AND I WOULD LIKE TO HIGHLIGHT JUST A HANDFUL OF THOSE ITEMS FOR YOU NOW
FIRST I'D LIKE TO TURN YOUR ATTENTION TO A RECENT EXCITING DEVELOPMENT
AFTER A YEARS-LONG INTERAGENCY PLANNING AND COORDINATION EFFORT THE NEW SOUTH LANDER STREET BRIDGE IN SEATTLE'S SODO NEIGHBORHOOD IS FINALLY COMPLETE
IT OPENED THIS WEEK TO TRAFFIC
THE PORT OF SEATTLE IS CONTRIBUTING FIVE MILLION DOLLARS TO THIS PROJECT WHICH WAS FINISHED ON TIME AND UNDER BUDGET
THE OVERPASS IS A CRUCIAL CONNECTION ACROSS THE RAILROAD TRACKS FOR PEOPLE DRIVING, WALKING, AND RIDING BICYCLES
BEYOND THAT IT WILL PROVIDE ACCESS TO NORTHWEST SEAPORT ALLIANCE TERMINALS
ONE OF THE LARGEST PORT OPERATIONS IN THE UNITED STATES
THE NEW BRIDGE WILL IMPROVE SAFETY FOR MORE THAN 3000 FREIGHT RAIL CARS PER DAY ON THE RAILROAD TRACKS AND REDUCE TRUCK DELAYS, AND CONGESTION, AND EMISSIONS FOR MORE THAN 13 THOUSAND VEHICLES INCLUDING 1400 SURFACE FREIGHT TRUCKS EACH DAY
THE NEW BRIDGE SYMBOLIZES WHAT IS POSSIBLE WHEN AGENCIES, COMMUNITIES, AND INDUSTRIES WORK TOGETHER TOWARDS A COMMON GOAL
WE CAN BE PROUD OF THE MANY PARTNERSHIPS WE BUILT ALONG THE WAY AND LOOK FORWARD TO WITNESSING THE BENEFITS OF OUR INVESTMENTS IN THIS MILESTONE PROJECT
COMMISSIONERS EARLIER THIS YEAR THE COMMISSION PASSED THE CENTURY AGENDA POLICY DIRECTIVE TO CREATE A NEW STRUCTURE AROUND OUR BUSINESS PLANNING ALIGNMENT AND KEY PERFORMANCE INDICATORS
AT YOUR REQUEST THE OFFICE OF STRATEGIC INITIATIVES AND EXTERNAL RELATIONS CREATED A PUBLIC-FACING CENTURY AGENDA WEB PAGE DETAILING THE PROPOSED CHANGES AND SOLICITED COMMENT
PUBLIC COMMENT PERIOD CLOSED RECENTLY
WE DID RECEIVE A FEW COMMENTS WHICH HAVE BEEN SUMMARIZED AND PROVIDED TO YOU IN A MEMO
WE'LL ALSO ADDRESS THE COMMENTS IN A BLOG POST ON OUR PUBLIC WEBSITE
BETWEEN NOW AND THE END OF OUR CURRENT BUDGET REVIEW PROCESS I'LL REVIEW YOUR FEEDBACK ON THE OBJECTIVES, KEY PERFORMANCE INDICATORS, AND TARGETS AND ADJUST IF NECESSARY
OUR INTENT IS TO APPROVE THE OBJECTIVES AND KPIS BY THE END OF THE YEAR AND TO GUIDE OUR 2021 WORK AND OUR PLANNING FOR 2022
AND WE HEARD IT TODAY I BELIEVE IT WAS COMMISSIONER BOWMAN THAT MENTIONED THE KPIS AND GETTING REPORTS ON THOSE
AND WE'RE BUILDING TOWARDS THAT PROCESS WHERE WE CAN REPORT OUT THOSE AND COMPLETE ALIGNMENT WITH THE CENTURY AGENDA
SO THIS IS A GREAT ACCOMPLISHMENT
ON ANOTHER FRONT ANOTHER PROCESS THAT CLOSED RECENTLY WAS THE REQUEST FOR PROPOSALS FOR THE COMMISSION LED INITIATIVE, THE SOUTH KING COUNTY FUND
WE RECEIVED 27 PROPOSALS FOCUSED ON WORKFORCE DEVELOPMENT, JOB CREATION, SMALL BUSINESS ASSISTANCE, AND DEVELOPMENT OF NEW INNOVATIVE ECONOMIC RECOVERY STRATEGIES
THE PROPOSALS WILL NOW BE REVIEWED BY A PANEL CONSISTING OF THREE PORT EMPLOYEES AND TWO COMMUNITY ADVISERS
THIS PANEL WILL LISTEN TO ORAL PRESENTATIONS AND PROVIDE RECOMMENDATIONS TO THE COMMISSION LATER THIS YEAR
THE SOUTH KING COUNTY FUND ENVIRONMENTAL GRANTS WILL BE ADVERTISED ON OCTOBER 15TH SIMULTANEOUSLY WITH THE AIRPORT COMMUNITY ECOLOGY FUND
MOVING TODAY'S COMMISSION MEETING I'D LIKE TO HIGHLIGHT JUST A FEW ITEMS I'D LIKE TO MAKE NOTE OF ITEM 6B ON THE CONSENT CALENDAR THAT YOU JUST APPROVED
THE MONTHLY APPROVAL OF CLAIMS AND OBLIGATIONS
IT'S A ROUTINE ACTION, BUT IT REALLY DEMONSTRATES THE POSITIVE IMPACT OF A PORT IN SUPPORTING OUR REGIONAL ECONOMY
IN SEPTEMBER THE BULK OF THOSE OBLIGATIONS, OVER 93 MILLION DOLLARS, WERE PAYMENTS TO VENDORS
WE MADE PAYMENTS TO NEARLY SIX HUNDRED AND SIX VENDORS COMPRISED OF OVER 1600 INVOICES AND OVER 6,300 ACCOUNTING EXPENSE TRANSACTIONS
WHILE 97% OF THE ACCOUNTS PAYABLE PAYMENTS MADE IN THIS MONTH FALL INTO CONSTRUCTION, EMPLOYEE BENEFITS, PAYROLL TAXES, CONTRACTED SERVICES, JANITORIAL SERVICES, UTILITY EXPENSES, ENVIRONMENTAL REMEDIATION, AND BOND FEE CATEGORIES
NET PAYROLL EXPENSE FOR THE MONTH OF SEPTEMBER WAS 11 MILLION FIVE HUNDRED AND FORTY ONE THOUSAND DOLLARS
THIS IS JUST A SNAPSHOT OF OUR ECONOMIC ACTIVITY FOR THE MONTH IN SERVICE TO ALL THE COMMUNITY THAT WONDERS
[INAUDIBLE] ITEM 7A IS A MOTION THAT ADVANCES OUR COMMITMENT TO EQUITY DIVERSITY AND INCLUSION
THE MOTION TAKES ADDITIONAL STEPS BEYOND WHAT THE OFFICE OF EQUITY INCLUSION AND DIVERSITY STRATEGIC PLAN HAS SET OUT TO ACHIEVE BY DIRECTING THE PORT IN THE DEVELOPMENT OF A COMPREHENSIVE POLICY DIRECTIVE THAT WILL CODIFY RACIAL EQUITY FOR THE PORT OF SEATTLE
THIS WILL ESTABLISH THE PORT LOCALLY AND NATIONALLY AS A LEADER IN THIS WORK ILLUSTRATING OUR COMMITMENT TO ACT, LEARN AND PROGRESS AS AN ORGANIZATION THAT VALUES AND CENTERS ODI, ACCOUNTABILITY AND TRANSPARENCY TO OUR EMPLOYEES AND OUR COMMUNITY
ITEM 9 A IS THE PRESENTATION ON THE 2021 MARITIME AND ECONOMIC DEVELOPMENT DIVISIONS OPERATING AND CAPITAL IMPROVEMENT PLAN BUDGET AND PORT WIDE ROLL UP
ITEM 9B IS AN UPDATE ON THE PROGRESS OF THE INTERNATIONAL ARRIVAL FACILITY WITH MORE TO SAY ABOUT THIS WHEN WE RETURN TO THIS ITEM IN THE MEETING
WITH THAT COMMISSIONERS, THIS CONCLUDES MY REPORT
THANK YOU, DIRECTOR METRUCK
WE WILL NOW TURN TO COMMITTEE REPORTS AND VERONICA VALDEZ MAY OFFER SOME COMMENTARY ON OUR COMMITTEES
GREAT
GOOD AFTERNOON COMMISSIONERS
I'M VERONICA VALDEZ COMMISSION SPECIALISTS TODAY
I'M FILLING IN FOR AARON PRITCHARD, SENIOR POLICY MANAGER
SINCE THE LAST COMMISSION MEETING COMMISSIONERS HAVE CONVENED FOUR COMMITTEE MEETINGS AND I'LL PROVIDE A READOUT FOR EACH ONE OF THOSE TODAY
ON SEPTEMBER 24TH COMMISSIONERS CALKINS AND CHO CONVENED THE AVIATION COMMITTEE
THE COMMITTEE WAS BRIEFED ON THE STATUS AND PROGRESS OF THE AIRPORT DINING AND RETAIL ADR MASTER PLAN, DUTY-FREE AND LEAN TEAM ENGAGEMENT WITH THE PROGRAM, THE COMMITTEE RECOMMENDED THAT ALL COMMISSIONERS RECEIVE A BRIEFING ON THE ADR MASTER PLAN IN ADVANCE OF THE COMMISSION ACTION ON ADR NOW SCHEDULED FOR NOVEMBER 17
THIS ACTION WOULD APPROVE TWO KIOSKS EQUIPPED WITH FULL KITCHENS SUITABLE FOR A PREPARATION AND SALE OF FOOD AND BEVERAGE
COMMISSIONERS CALKINS AND CHO HIGHLIGHTED THE IMPORTANCE OF THIS PROGRAM AS A LOWER BARRIER TO ENTRY FOR SMALL MINORITY BUSINESS OWNERS
THE BRIEFING WAS FOLLOWED BY A QUICK UPDATE FROM JULIE COLLINS ON FLY HEALTHY AS SEA
THE NEXT AVIATION COMMITTEE MEETING IS SCHEDULED FOR OCTOBER 29
ON THE SAME DAY, SEPTEMBER 24, COMMISSIONERS CALKINS AND BOWMAN CONVENED THE AUDIT COMMITTEE WITH PUBLIC MEMBER KRIS GOERKE
DURING THE MEETING THE WASHINGTON STATE AUDITOR KICKED OFF THE ACCOUNTABILITY AUDIT
THE COMMITTEE ALSO APPROVED THE PROPOSED INTERNAL AUDIT BUDGET, APPROVED THE UPDATED INTERNAL AUDIT CHARTER DISTINCT FROM THE COMMITTEE CHARTER ,AND THE COMMITTEE REVIEWED THE 2020 AUDIT PLAN WHICH THE FULL COMMISSION WILL RECEIVE A SUMMARY OF IN DECEMBER
AND LASTLY NO MAJOR FINDINGS WERE REPORTED IN THE AUDIT
BOTH EXTERNAL AND INTERNAL
ON OCTOBER 1 COMMISSIONERS FELLEMAN AND CALKINS CONVENED THE ENERGY AND SUSTAINABILITY COMMITTEE AND THE COMMITTEE DISCUSSED THE LEGISLATIVE STRATEGY SURROUNDING CLEAN FUELS STANDARD
THE CFS LEGISLATIVE ONE-PAGERS AND POTENTIAL MEETINGS WITH LEGISLATORS
THE COMMITTEE RECOMMENDED ADVANCING A PROPOSED CONTRACT WITH NATIONAL RENEWABLE ENERGY LAB, NREL, USING THE E & S FUND
THAT RECOMMENDATION WILL NEED TO BE APPROVED BY THE FULL COMMISSION
THIS CONTRACT WILL EVALUATE THE BEST APPROACHES TO MEET THE NET ZERO CARBON EMISSIONS AND CENTURY AGENDA GOALS FOR AVIATION AND MARITIME INCLUDING OPPORTUNITIES FOR DISTRIBUTED ENERGY, STORAGE, MICRO GRIDS, THERMAL STORAGE, BATTERY STORAGE ON-SITE GENERATION AND RESILIENCY SHOULD UTILITY SOURCES BE DISRUPTED
THE TOTAL COST IS $150,000
THE COMMITTEE ALSO RECOMMENDED THE PORT SIGN ONTO THE UPDATED JOINT KING COUNTY CITIES CLIMATE COLLABORATION, K4C, LETTER
COMMISSIONER STEINBREUCK SIGNED THE LETTER ADDING THE PORT OF SEATTLE'S NAME TO THE JOINT K4C LETTER
THE JOINT K4C LETTER ALIGNED WITH THE PORT'S LEGISLATIVE PRIORITIES
THE COMMITTEE EXPRESSED SUPPORT FOR THE FINAL AGENDA FOR THE CLEAN FUELS FORUM ON OCTOBER 22ND
LASTLY ON OCTOBER 8, COMMISSIONERS CALKINS AND CHO CONVENED A PUBLIC BIOMETRIC SPECIAL COMMITTEE MEETING
THE COMMITTEE RECEIVED RECOMMENDATIONS FOR THE REMAINING THREE USE CASES BIOMETRICS FOR TRAVELER FUNCTIONS USING PRIVATE PROPRIETARY SYSTEMS, BIOMETRICS FOR TRAVELER FUNCTIONS USING GOVERNMENT SYSTEMS, AND BIOMETRIC AIR AND CRUISE ENTRY
FOLLOWING THE PRESENTATION A PANEL OF EXTERNAL ADVISORY GROUP MEMBERS FROM ACLU, MICROSOFT, AND REPRESENTATIVE JAYAPAL'S STAFF MEMBER PRESENTED THEIR VIEWS AND PERSPECTIVES ON THE RECOMMENDATIONS
MATERIALS ARE AVAILABLE ON THE COMMISSION MEETINGS PAGE AND ON AUDIO RECORDING OF THE MEETING IS ALSO AVAILABLE
THE NEXT COMMITTEE MEETING WILL BE SCHEDULED FOR EARLY TO MID NOVEMBER FOR THE COMMITTEE TO PROVIDE THE RECOMMENDATION TO THE FULL COMMISSION AND NEXT STEPS
AND THE NEXT UPCOMING COMMITTEE MEETINGS INCLUDE THE WATERFRONT AND INDUSTRIAL LANDS COMMITTEE, WHICH IS SCHEDULED FOR OCTOBER 22ND TO DISCUSS THE CITY OF SEATTLE'S INDUSTRIAL LANDS TASK FORCE AND THE WEST SEATTLE BRIDGE
AND ON THE SAME DAY THE ART COMMITTEE IS ALSO SCHEDULED TO DISCUSS THE DIA SESSION OF THE LANDING IN CENTRAL TERMINAL, AN UPDATE ON THE MLK JR
CELEBRATION COMMITTEES ART COMPETITION AT SEA, AND THEY WILL ALSO RECEIVE AN UPDATE ON CIP ART INSTALLATION
THAT CONCLUDES THE COMMITTEE UPDATE
THANK YOU COMMISSIONERS
OKAY
THANK YOU VERY MUCH VERONICA VALDEZ FOR A VERY GOOD REPORT
APPRECIATE HEARING THOSE DETAILS SO THANK YOU
SO WITH THAT WE ARE MOVING ON TO ITEM 5, WHICH IS PUBLIC COMMENT ON OUR AGENDA
THE COMMISSION WILL NOW ACCEPT PUBLIC COMMENT FROM THOSE WHO HAVE SIGNED UP WRITTEN MATERIALS PROVIDED TO THE CLERK WILL BE INCLUDED IN TODAY'S MEETING RECORD
THE CLERK HAS A LIST OF THOSE PREPARED TO SPEAK
AS THE CLERK CALLS YOUR NAME WE WILL OPEN THE LINES AND MIC AND COMMENTORS WILL HAVE TO UNMUTE THEMSELVES THEN PLEASE REPEAT YOUR NAME FOR THE RECORD
IF YOU'RE ON THE TEAMS MEETING AND ARE STREAMING THE MEETING, PLEASE MUTE THE VIDEO STREAM TO AVOID FEEDBACK
PLEASE NOTE THERE WILL BE A SHORT TIME LEG ON THE VIDEO STREAM
COMMENT TIME WILL BE LIMITED TO TWO MINUTES PER PERSON
CLERK, PLEASE CALL THE FIRST SPEAKER
THANK YOU
THE FIRST PERSON WE HAVE SIGNED UP TO SPEAK TODAY IS LAURA GIBBONS
COMMISSIONERS, I AM LAURA GIBBONS A SEATTLE RESIDENT AND A VOLUNTEER MEMBER OF THE AVIATION TEAM OF 350 SEATTLE A GROUP THAT WORKS FOR CLIMATE JUSTICE
I LOOKED OVER THE MATERIALS PROVIDED FOR YOUR AVIATION STUDY SESSION THIS MORNING AND NOTED HOW CAREFULLY YOU ARE ADJUSTING PROJECTED AIR TRAVEL BASED ON POSSIBLE COVID-19 SCENARIOS
I URGE YOU TO SPEAK JUST AS CAREFULLY ABOUT THE IMPENDING CLIMATE CHAOS, AND TO MAKE ANOTHER SET OF PLANS, PLANS THAT WOULD ENTAIL A REDUCTION IN FLYING
AIR TRAVEL IS THE LARGEST USE OF FOSSIL FUEL THAT CAN'T BE REPLACED BY CLEAN ENERGY BEFORE THE 2050 DEADLINE
SO THERE IS NO WAY TO MEET LOCAL OR GLOBAL TARGETS FOR CARBON EMISSIONS WITHOUT A DE-GROWTH OF AVIATION
WE'RE TENACIOUS
350 SEATTLE WILL KEEP TRYING TO CONVINCE YOU TO PLAN FOR THE CARBON FREE FUTURE OUR WORLD REQUIRES
THERE'S GROWING AWARENESS OF THE CLIMATE IMPACT OF FLYING AMONG LEGISLATORS AND AMONG THE FLYING PUBLIC THEMSELVES
FLYING WILL DECREASE ONE WAY OR ANOTHER SO PLEASE START PLANNING ACCORDINGLY
THANK YOU
GREAT
AND NEXT WE HAVE JORDAN VAN VHOST
GOOD AFTERNOON
CAN YOU HEAR ME? YES, WE CAN
GOOD AFTERNOON, COMMISSIONERS AND EXECUTIVE DIRECTOR METRUCK
MY NAME IS JORDAN VAN VHOST
YESTERDAY WAS INDIGENOUS PEOPLES' DAY AS YOU NOTED BUT ADDING HOLIDAYS TO THE CALENDAR OR CHANGING THE NAMES OF PARKS DOESN'T CHANGE THE FACT THAT OUR INDUSTRIAL CIVILIZATION POWERED BY FOSSIL FUELS CONTINUES TO BE RESPONSIBLE FOR ENVIRONMENTAL RACISM AND GENOCIDE
BLACK, INDIGENOUS, AND PEOPLE OF COLOR HAVE ALWAYS BORNE THE BRUNT OF THE ADVERSE EFFECTS OF OUR CONSUMER LIFESTYLES
I LIVED IN NORTHERN INDIA IN THE FOOTHILLS OF THE HIMALAYAS FOR TWO YEARS BEGINNING IN 2000 AND WATER SHORTAGES WERE ALREADY COMMON BACK THEN
THE GLACIERS OF THE TIBETAN PLATEAU ARE MELTING AND THREE BILLION PEOPLE WILL SOON LACK THE BASIC INGREDIENT OF LIFE
EXTREME WEATHER AND DISEASE EXACERBATES THESE PROBLEMS WHICH ARE DUE TO A WARMING PLANET AND OUR CONSUMER LIFESTYLES
ANY DISCUSSIONS OF EQUITY BY THE PORT NEEDS TO RECKON WITH THE GLOBAL IMPACTS OF ITS GREENHOUSE GAS FOOTPRINT
CONTINUING TO PLAN FOR REVITALIZATION OF THE CRUISE SHIP INDUSTRY AND THE MILLIONS OF FLIGHTS THOSE VACATIONS ENTAIL ALL FOR THE SAKE OF SHORT-TERM ECONOMIC GAIN IS NOT BRINGING US CLOSER TO URGENTLY NEEDED CLIMATE REDUCTION TARGETS, BUT INSTEAD DROPS A BRICK ON THE GAS PEDAL ACCELERATING ALL OF US TOWARDS THE CLIMATE CLIFF OF NO RETURN, PUSHING PEOPLE IN THE GLOBAL SOUTH TO THEIR DEATH
WE ARE RUNNING OUT OF TIME FOR SERIOUS CLIMATE POLICY CHANGE
WE NEED TO RADICALLY RETHINK TOURISM AND TAKE FULL RESPONSIBILITY FOR THE IMPACT OF OUR CHOICES ON PEOPLE WHO WILL NEVER SHARE IN THE SHORT-TERM ECONOMIC WEALTH WE CREATE
MAY ALL BEINGS BE SAFE AND HEALTHY AND LIVE FRUITFUL AND HAPPY LIVES IN HARMONY WITH NATURE CONTENT WITH SIMPLICITY
THANK YOU
THANK YOU
THANK YOU, JORDAN
NEXT PUBLIC SPEAKER
YES
NEXT IS IRIS ANTMAN
CAN YOU HEAR ME? YES
I'M IRIS ANTMAN, A MEMBER OF SEATTLE CRUISE CONTROL
[INAUDIBLE] CAUSING CONCERNS FOR A SAFE AND FAIR ELECTION PROCESS AND WITH THE RETURN OF SEATTLE'S FALL RAINS AND CLEAN AIR IT IS ALMOST UNDERSTANDABLE TO LET THE PERILS OF OUR CLIMATE EMERGENCY STAY SAFE FROM VIEW
THE COURSE OF THE PANDEMIC CONTINUES TO PRESENT SERIOUS CHALLENGES FOR THE HEALTH AND SAFETY OF SEATTLE CITIZENS AND PEOPLE ALL OVER THE WORLD
I UNDERSTAND THE GRAVITY OF THE ECONOMIC HIT THE CITY AND THE PORT HAVE TAKEN BECAUSE OF COVID AND THE WISH TO RETURN TO CRUISING AS SOON AS POSSIBLE, BUT IN THE DARK OF THE COMING MONTHS OF FALL AND WINTER, YOU HAVE AN OPPORTUNITY TO CONSIDER WHAT KIND OF PORT YOU WANT TO BE AND HOW YOU CAN TRULY EARNED THE MONIKER OF THE GREENEST PORT
A MONTH OR TWO AGO SEATTLE CRUISE CONTROL SUBMITTED TO YOU THE DOCUMENT ENTITLED PRINCIPLES OF RESPONSIBLE CRUISE TOURISM WRITTEN BY THE GLOBAL CRUISE ACTIVIST NETWORK OF WHICH SEATTLE CRUISE CONTROL IS A MEMBER
HAVE YOU READ IT AND CONSIDER THESE PRINCIPLES? WE ARE ASKING THAT YOU AND I'M BEING FROM THE DOCUMENT DELAY THEIR RETURN TO OPERATIONS UNTIL THEY, THE CRUISE INDUSTRY, ADDRESS THESE PRINCIPLES BY PUBLISHING DETAILED PLANS WITH EXPLICIT COMMITMENT BENCHMARKS AND TIMELINES THAT COMMIT EACH COMPANY TO IMPLEMENTING SPECIFIC LEVELS OF PERFORMANCE AND COMPLIANCE OVER TIME
THE DOCUMENT CONTINUES AND I QUOTE WE OPPOSE THE RETURN OF A BUSINESS-AS-USUAL CRUISE SHIP INDUSTRY
UNTIL THESE COMMON-SENSE POLICIES ARE COLLECTIVELY ADOPTED EFFECTIVELY IMPLEMENTED AND CONSISTENTLY MONITORED, THE CRUISE INDUSTRY WILL REMAIN COMPLICIT IN PUTTING PASSENGERS, CREWS, COMMUNITIES, AND THE PLANET AT RISK END QUOTE
I'M ACTUALLY ASKING YOU THIS, WILL YOU READ THIS DOCUMENT? AND WITH SERIOUS CONSIDERATION AND WORK WITH THE CRUISE COMPANIES TO HOLD THEM ACCOUNTABLE? I AM HOLDING YOU ACCOUNTABLE TO DO THIS
THANK YOU
OKAY
THANK YOU, IRIS
NEXT SPEAKER, PLEASE
YES OUR NEXT AND LAST SPEAKER FOR THE DAY IS SARAH SHIVLEY
HI, CAN YOU HEAR ME? YES, WE CAN
MY NAME IS SARAH SHIVLEY
I'M A VOLUNTEER WITH 350 SEATTLE AVIATION TEAM AND I AM COMMENTING TODAY ON AGENDA ITEM 7A
I'M HAPPY TO SEE THAT THE PORT IS TAKING UP THIS MOTION TO CONSIDER ADDRESSING SOCIETAL AND SYSTEMIC BIAS AND OPPRESSION
IN CONSIDERING IT, HOWEVER, I URGE YOU TO THINK BEYOND JUST THE INTERNAL FUNCTIONING OF THE ORGANIZATION AND TO SEE THE ENVIRONMENTAL INJUSTICE THAT THE PORT FUELS EVERY DAY
AS YOU WELL KNOW, OR SHOULD KNOW, AIR AND NOISE POLLUTION FROM SEA TAC OPERATIONS DISPROPORTIONATELY BURDENS MARGINALIZED COMMUNITIES AND COMMUNITIES OF COLOR
NOISE POLLUTION CAN LEAD TO COUNTLESS LIFE-THREATENING HEALTH CONDITIONS, HIGHER RATES OF DEPRESSION AND ANXIETY, AND LOWER LEARNING OUTCOMES
LONG-TERM EXPOSURE TO ULTRA FINE PARTICULATE PARTICULATES, THE AIR POLLUTION FROM AIRPLANES, LEADS TO VARIOUS ADVERSE HEALTH OUTCOMES INCLUDING NEGATIVE EFFECTS ON THE BRAIN, NERVOUS SYSTEM, AND RESPIRATORY SYSTEM
AND THE BENEFITS FROM SEA TAC OPERATIONS? THOSE FLOW NOT TO THE IMPACTED COMMUNITIES, BUT PRIMARILY TO THE LARGE CORPORATIONS AND MORE RESOURCE INDIVIDUALS DRIVING AND PROFITTING FROM THE INCREASED DEMAND
DAY IN AND DAY OUT THE PORT OF SEATTLE PUSHES TO INCREASE THE NUMBER OF PLANES FLYING OVER COMMUNITIES ENRICHING SOME WHILE FURTHER HARMING IMPACTED COMMUNITIES
THIS IS SOCIETAL AND SYSTEMIC BIAS AND OPPRESSION
AND THE PORT OF SEATTLE IS RESPONSIBLE FOR IT
BEYOND DIRECT IMPACT ON LOCAL COMMUNITIES, SEA TAC AVIATION ACTIVITY ENGENDERS BROADER ENVIRONMENTAL INJUSTICES
UNDER CURRENT DEMAND GROWTH PROJECTIONS, GREENHOUSE GAS EMISSIONS FROM FUEL PUMPS AT SEA TAC ARE ON PACE TO BECOME THE LARGEST SOURCE OF GREENHOUSE GAS EMISSIONS IN OUR REGION AND THE PORT APPEARS TO BE DOING EVERYTHING IN IT'S POWER TO MAKE THIS HAPPEN AS FAST AS POSSIBLE
THESE EMISSIONS ARE DRIVING THE CLIMATE CRISIS, WHICH ON A NATIONAL AND GLOBAL SCALE HITS UNDER-RESOURCED COMMUNITIES OF COLOR THE HARDEST
THE CLIMATE CRISIS IS A RACIAL JUSTICE CRISIS
AS YOU CONSIDER THIS MOTION, I BEG OF YOU TO BE HONEST AND THOROUGH AND TO LOOK AT THE WIDER IMPACT OF WHAT YOU DO EVERY DAY, TO THE SUFFERING YOU DON'T SEE BECAUSE IT'S OUTSIDE YOUR COMMUNITY, OR HAPPENING SLOWLY SO THAT IT'S BECOMING NORMALIZED
I BEG OF YOU NOT TO WASH YOUR HANDS OF SUFFERING CAUSED BY THE PORT OPERATIONS BY DEEMING ITS ROOT CAUSES OUTSIDE OF YOUR CONTROL
AS A STATEMENT IN SUPPORT OF THE MOTION SAYS BY FAILING TO ACKNOWLEDGE INEQUITIES, YOU PLAY A ROLE IN PERPETUATING THEM
YOU MUST AND YOU CAN DO BETTER
THANK YOU
I BELIEVE THAT'S THE END OF THE THOSE WHO HAVE CALLED IN TO SPEAK
WE HAVE NOW ADOPTED FOR THE CLERK TO SUMMARIZE THE WRITTEN COMMENTS THAT WE'VE RECEIVED TODAY
THANK YOU COMMISSIONER STEINBREUCK, MEMBERS OF THE COMMISSION
TODAY WE HAVE RECEIVED FIVE WRITTEN COMMENTS
ALL HAVE PREVIOUSLY BEEN DISTRIBUTED TO YOU
TWO ACTUALLY HAVE BEEN SUBMITTED AND SPOKEN FORM TODAY FROM MISS LAURA GIBBONS AND MISS SARAH SHIVLEY
PARDON MY TONGUE TWISTING
WE ALSO HAVE A COMMENT FROM TYRELL HEADLAND WHO ALSO COMMENTS REGARDING ITEM 7A ON THE AGENDA SUPPORTING THE MOTION AND ALSO ASKING THAT THE COMMISSION ADDRESS WIDER ENVIRONMENTAL INJUSTICES CREATED BY GREENHOUSE GAS EMISSIONS FROM SEA TAC OPERATIONS
MISS BERNADINE LUND WRITES AND ASKED THE COMMISSION TO PLAN FOR REDUCTION AND FLIGHTS TO REDUCE GREENHOUSE GAS EMISSIONS AND HAS PROVIDED BACKGROUND INFORMATION TO YOU AND A SUMMARY OF RECOMMENDATIONS FROM THE START COMMITTEE IN DECEMBER OF 2018
AND THEN WE HAD A LATE COMING WRITTEN COMMENT THAT I DID DISTRIBUTE OUT TO YOU FROM SEATTLE BEACON HILLS COUNCIL AND EL CENTRO DE LA RAZA REGARDING ITEM 7A
THEY STRONGLY RECOMMEND OEDI SCOPE INCLUDE PROACTIVE IMPLEMENTATION OF AN INTERNAL MONITORING ROLE FOR TITLE SIX OF THE 1964 CIVIL RIGHTS ACT AS AMENDED TO ENSURE EQUAL ACCESS TO PROGRAMS, SERVICES, AND FACILITIES REGARDLESS OF RACE, ,COLOR, NATIONAL ORIGIN, GENDER, ETC BY ENTITIES RECEIVING FEDERAL MONIES
AND SECONDLY THE PRESIDENTIAL ORDER ON ENVIRONMENTAL JUSTICE
AND THAT CONCLUDES THE WRITTEN COMMENTS TODAY
OKAY
THANK YOU CLERK HART
HEARING NO FURTHER PUBLIC TESTIMONY
WE WILL MOVE TO THE UNANIMOUS CONSENT AGENDA
ITEMS ON THE CONSENT AGENDA ARE CONSIDERED ROUTINE AND WILL BE ADOPTED BY ONE MOTION
ITEMS REMOVED FROM THE CONSENT CALENDAR WILL BE CONSIDERED SEPARATELY AS A SPECIAL ORDER
THERE ARE NO ITEMS PROPOSED FOR REMOVAL FOR TODAY'S MEETING
AT THIS TIME THE CHAIR WILL ENTERTAIN A MOTION TO APPROVE THE CONSENT CALENDAR COVERING ITEM 6 A B C D E F G AND H
IS THERE A MOTION? COMMISSIONERS, IS THERE A MOTION TO APPROVE THE CONSENT AGENDA? SO MOVED
SECOND? SECOND
OKAY
IT'S BEEN MOVED AND SECONDED
ROLL? THANK YOU
STARTING WITH COMMISSIONER FELLEMAN FOR APPROVAL OF THE CONSENT
AGENDA
AYE
THANK YOU
COMMISSIONER CHO AYE
ALL RIGHT
THANK YOU
COMMISSIONER CALKINS
AYE
THANK YOU COMMISSIONER BOWMAN
I JUST SAW IN THE CHAT THAT COMMISSIONER BOWMAN LOST INTERNET AND IS TRYING TO CALL IN
I DID JUST SEA THAT AS WELL
THANK YOU
COMMISSIONER STEINBREUCK
YES
YOU AND WE CAN WAIT FOR COMMISSIONER BOWMAN TO REJOIN OR WE CAN CALL THIS A 4 TO 0
LET'S MOVE ALONG HERE
IT PASSES EITHER WAY
IT DOES PASS EITHER WAY
SO FOR THIS VOTE CURRENTLY WE HAVE FOUR YESES ZERO NO
OKAY
MOTION CARRIES AND THE CONSENT AGENDA IS APPROVED
ITEM NUMBER 7A SPECIAL ORDERS OF OUR MEETING
CLERK HART, PLEASE READ THE WHOLE THING INTO THE RECORD
THANK YOU
THANK YOU COMMISSION PRESIDENT STEINBREUCK
ITEM 7A IS MOTION 2020-19, A MOTION OF THE PORT OF SEATTLE COMMISSION TO DIRECT THE EXECUTIVE DIRECTOR TO EXAMINE PORT OPERATIONS AND POLICIES FOR SOURCES OF BIAS AND DISCRIMINATION AND TO DEVELOP PROGRAMS AND POLICIES ELIMINATING INEQUITY IN ALL ASPECTS OF THE ORGANIZATION
COMMISSIONERS, WE ALL HAVE A ROLE TO PLAY IN MAKING OUR INSTITUTIONS MORE EQUITABLE, MORE FAIR, AND MORE JUST
DURING THIS PERIOD OF CIVIL AND SOCIAL AWAKENING IN OUR COUNTRY, WE HERE AT THE PORT OF SEATTLE MUST DO OUR PART AND HOLD UP THE MIRROR TO THOROUGHLY EXAMINE OUR OWN OPERATIONS AND POLICIES FOR SOURCES OF RACIAL BIAS AND DISCRIMINATION
THIS EFFORT SUPPORTS OUR CENTURY AGENDA STRATEGY TO BECOME A MODEL FOR DIVERSITY, EQUITY & INCLUSION, APPRECIATE ALL WORK AND INPUT FROM STAFF ACROSS THE BOARD TO CREATE THIS MOTION AND LEADERSHIP FROM THE COMMISSION OFFICE AND IN PARTICULARLY FROM COMMISSIONER CHO
SPEAKERS TODAY ARE LEANNE JURADO, COMMISSION SPECIALISTS, WILL BE PRESENTING ALONG WITH BOOKDHA GAYSAR, OUR SENIOR DIRECTOR, OFFICE OF EQUITY DIVERSITY INCLUSION
OTHER SPEAKERS INCLUDE LIAM RICE, DIRECTOR OF DIVERSITY IN CONTRACTING AND DAWN HUNTER, DIRECTOR OF AVIATION COMMERCIAL MANAGEMENT
WITH THAT, I'LL TURN IT OVER TO LEANNE
ALL RIGHT
THANK YOU, DIRECTOR METRUCK
CLERK PLEASE UNMUTE OUR PRESENTERS AND PRESENTERS, PLEASE UNMUTE YOURSELVES
COMMISSIONERS WILL REMAIN MUTED UNTIL THE PRESENTATION IS COMPLETE
AT WHICH TIME I WILL CALL EACH OF YOU TO ASK QUESTIONS OR COMMENTS IN ALPHABETICAL ORDER
GOOD AFTERNOON COMMISSIONERS AND EXECUTIVE DIRECTOR METRUCK
FOR THE RECORD, I'M LEANNE JERADO, COMMISSION SPECIAL FOR THE PORT OF SEATTLE COMMISSION, AND I'M WITH BOOKDHA GAYSAR, SENIOR DIRECTOR OF EQUITY DIVERSITY AND INCLUSION
TODAY WE WILL BE PRESENTING THE MOTION FOR YOUR CONSIDERATION THAT WILL DIRECT THE PORT TO EXAMINE PORT OPERATIONS AND POLICIES FOR SOURCES OF RACIAL BIAS AND DISCRIMINATION AND DEVELOP PROGRAMS AND POLICIES ELIMINATING INEQUITY IN ALL ASPECTS OF THE ORGANIZATION
THE PORT OF SEATTLE IS COMMITTED TO BEING A LEADER IN REGIONAL AND NATIONAL EFFORTS TO COMBAT DISCRIMINATION, ACHIEVE EQUITY AND SOCIAL JUSTICE
THE PORT HAS WORKED TO INCREASINGLY DEMONSTRATE THIS COMMITMENT IN RECENT YEARS
IN 2018 THE COMMISSION PASSED A MOTION WHICH CALLED FOR THE PORT TO DEVELOP AND IMPLEMENT AN EQUITY PILOT PROGRAM THAT WILL SUPPORT THE DEVELOPMENT OF A PORT-WIDE EQUITY POLICY
IN 2019, THE PORT ESTABLISHED ORGANIZATIONALLY CROSS-CUTTING OFFICE OF EQUITY DIVERSITY AND INCLUSION, OEDI, AND WITH THE APPOINTMENT OF BOOKDHA GAYSAR TO LEAD THE OFFICE, THE PORT ENSURED THAT IT WOULD RIGOROUSLY WORK TO ADDRESS INSTITUTIONAL OPPRESSION WITHIN THE PORT AND TO TRANSFORM POLICIES, PRACTICES, AND PROCESSES
ON JANUARY 28TH OF THIS YEAR THE COMMISSION ESTABLISHED THE EQUITY AND WORKFORCE DEVELOPMENT STANDING COMMITTEE TO PROVIDE INFORMATION, ADVICE, AND RECOMMENDATIONS ABOUT THE PORT'S EQUITY, WORKFORCE DEVELOPMENT, AND CAREER CONNECTED LEARNING PROGRAMS AND POLICIES AND DIVERSITY AND CONTRACTING GOALS
AND ON FEBRUARY 11TH OF THIS YEAR, THE COMMISSION WAS PRESENTED WITH THE FIRST OEDI STRATEGIC PLAN
AT THAT TIME, NO ONE COULD HAVE IMAGINED WHAT THE FOLLOWING MONTHS WOULD PRESENT US WITH
OUR MOST VULNERABLE COMMUNITIES HAVE SUFFERED THE GREATEST IMPACTS AS A RESULT OF THE PANDEMIC
MANY OF THESE SAME COMMUNITIES HAVE BEEN FURTHER EXACERBATED BY THE CONTINUED, UNJUST AND TRAGIC KILLINGS OF OUR BROWN BROTHERS AND SISTERS
2020 HAS PROVIDED A PAINFUL REMINDER OF THE SOCIETAL AND EQUITIES THAT EXIST AND THE CRITICAL NEED AND OPPORTUNITY FOR ALL OF US TO ACTIVELY WORK TO DISMANTLE SYSTEMS OF OPPRESSION AND INSTITUTIONALIZED RACISM
THIS MOTION IS IN ALIGNMENT WITH THE CENTURY AGENDA GOAL TO BECOME A MODEL OF EQUITY DIVERSITY AND INCLUSION AND THE COMPONENT OF THAT GOAL THAT STIPULATES INTERNAL AND EXTERNAL PROGRAMS, STRUCTURES, AND PRACTICES TO PROVIDE EQUITABLE OPPORTUNITIES FOR ALL
IF APPROVED, BEGINNING IN JANUARY 2021, THIS MOTION WILL REQUIRE THAT THE EXECUTIVE DIRECTOR OR HIS DESIGNEE CONDUCT THE FIVE FOLLOWING ACTIONS: NUMBER ONE, SUPPORT THE EFFORTS OF THE OFFICE OF EQUITY DIVERSITY AND INCLUSION TO CONVENE OUR EMPLOYEES AND OFFER LEARNINGS AND DEEPER ANALYSIS OF ANTI-BLACK RACISM BY SUPPORTING AND UPLIFTING THE BLACK LIVES MATTER CALL TO ACTION AND ENGAGE EMPLOYEES IN THIS WORK
NUMBER TWO, REQUIRE RACIAL EQUITY AND UNCONSCIOUS BIAS TRAINING FOR COMMISSIONERS, THE EXECUTIVE DIRECTOR, THE EXECUTIVE LEADERSHIP TEAM, SUPERVISORS, MANAGERS, AND EMPLOYEES BY CREATING CURRICULUM TRAININGS, TAILORING AS ADDED BASED ON DIFFERENT AUDIENCES AND REPORTING TO THE COMMISSION ON STAFF PARTICIPATION AND FEEDBACK AND LEARNINGS FROM TRAININGS IN OCTOBER OF 2021
NUMBER 3, ESTABLISH AN INTERNAL CHANGE TEAM WITH REPRESENTATIVES FROM EACH DIVISION AND DEPARTMENT WITHIN THE PORT TO ASSESS THE CURRENT STATE OF EQUITY DIVERSITY AND INCLUSION FOR ALL TEAMS BY DEFINING THE ASSESSMENT THROUGH PORT WIDE ENGAGEMENT
THE ASSESSMENT WILL BE CONDUCTED BY THE CHANGE TEAM WHO ARE INTERNAL STAKEHOLDERS THAT REPRESENT EACH DIVISION AT THE PORT AS WELL AS REPRESENTATIVES FROM THE DEVELOPMENT AND DIVERSITY COUNCIL AND EMPLOYEE RESOURCE GROUPS
USING THE ASSESSMENT AS A BASELINE, THE ASSESSMENT SHALL BE THE BASIS FOR A LANDSCAPE EQUITY ANALYSIS OF EACH OF THE 13 DIVISIONS AT THE PORT
THAT ANALYSIS WILL PROVIDE A QUANTITATIVE AND QUALITATIVE BASELINE FOR KEY PERFORMANCE INDICATORS AND EQUITY METRICS THAT EACH TEAM WILL FOCUS ON FOR THE YEAR AHEAD
THE ASSESSMENT SHOULD BE COMPLETED BY OCTOBER 30TH, 2021
BEGINNING JANUARY 2022, EACH DEPARTMENT OR DIVISION WILL SUBMIT AN ANNUAL REPORT TO OEDI WHO WILL THEN PROVIDE A CONSOLIDATED REPORT TO THE COMMISSION ON PROGRESS MADE TOWARD EQUITY GOALS AND ON AN ANNUAL BASIS
NUMBER FOUR, IN ADDITION TO THE PORT-WIDE ASSESSMENT CONDUCTED BY THE CHANGE TEAM, OEDI WILL CONSIDER THE POLICIES AND ISSUES THAT HAVE BEEN IDENTIFIED BY PORT EMPLOYEES AS THE MOST CHALLENGING BARRIERS TO FAIRLY ACCESSING RESOURCES AND OPPORTUNITIES AT THE PORT
THIS ASSESSMENT SHOULD INCLUDE A REVIEW OF EMPLOYEE DEVELOPMENT, PROMOTION AND COMPENSATION, RECRUITMENT, HIRING RETENTION, AND PROMOTION OF BLACK INDIGENOUS AND PEOPLE OF COLOR, BIPOC, PORT WIDE
POLICIES AND PRACTICES IMPACTING BIPOC CONTRACTORS AND WMB'S WITH PARTICULAR FOCUS ON FIRMS OWNED BY BLACK DESCENDANTS OF SLAVES CONTRACTING AND PROCUREMENT POLICIES AND PRACTICES IMPACTING COMMUNITY ORGANIZATIONS AND CONTRACTORS TO ACCESS PORT RESOURCES AND OTHER AREAS AS IDENTIFIED THROUGH THE OEDI EMPLOYEE ENGAGEMENT
THE ASSESSMENT SHALL RECOMMEND A SET OF STRATEGIES AND MEASURABLE OUTCOMES THAT WILL ADDRESS IDENTIFIED BARRIERS
THE ASSESSMENTS WILL BE COMPLETED BY OCTOBER 30TH, 2021, THE EQUITY AND WORKFORCE DEVELOPMENT COMMITTEE SHALL USE THE ASSESSMENTS CONDUCTED BY THE CHANGE TEAM AND OEDI TO INFORM THE DEVELOPMENT OF AN EQUITY DIVERSITY AND INCLUSION POLICY DIRECTIVES PROMOTION 2018 - 06
WE'VE CREATED A COMMUNITY ADVISORY BOARD TO ENSURE THE PORT IS ACCOUNTABLE TO THE PUBLIC IN THE INTEGRATION OF EQUITY PRINCIPLES INTO THE PORT'S WORK
THE COMMUNITY ADVISORY BOARD SHALL AMONG OTHER CLEAR DELIVERABLES BE DEVELOPED BY OEDI USING THE EQUITY INDEX WORK WITH OEDI TO INFORM THE USE OF PORT RESOURCES AND INVESTMENTS, INFORM THE ASSESSMENT PROCESS AND PROVIDE POLICY RECOMMENDATIONS TO THE PORT ON ADDRESSING INEQUITIES, ADVICE PORT COMMISSION AND LEADERSHIP ON IMPLEMENTATION OF INTERNAL AND EXTERNAL PORT EQUITY EFFORTS
THANK YOU TO THE COMMISSION FOR ESTABLISHING AN OFFICE OF EQUITY DIVERSITY AND INCLUSION THAT IN LESS THAN ONE YEAR HAD ALREADY SET US ON A COURSE TO MAKE OUR ORGANIZATION BETTER EQUIPPED AND INFORMED TO LEAD DURING THESE UNPRECEDENTED TIMES
AND THANK YOU TO COMMISSIONER CHO WHO CHAMPIONED THIS MOTION BY DIRECTLY ENGAGING WITH EMPLOYEES REPRESENTING MANY OF THE ORGANIZATION'S EMPLOYEE RESOURCE GROUPS, THE DEVELOPMENT AND DIVERSITY COUNCIL, AND OTHER EMPLOYEES OVER THE PAST SIX MONTHS SO THAT THIS MOTION WOULD BE A REPRESENTATIVE VOICE OF ALL EMPLOYEES HERE AT THE PORT OF SEATTLE
NEXT I LIKE TO INVITE LIAM RICE, DIVERSITY AND CONTRACTING DIRECTOR FOLLOWED BY DAWN HUNTER DIRECTOR OF AVIATION COMMERCIAL MANAGEMENT TO SHARE SOME THOUGHTS ABOUT THE MOTION AND THEN THEY'LL PASS IT ON TO BOOKDHA
LIAM? ALL RIGHT
THANK YOU LEANNE
GOOD AFTERNOON COMMISSIONERS
LIAM RICE DIVERSITY AND CONTRACTING DIRECTOR
LEANNE, BOOKDHA, AND DAWN HUNTER HAVE GRACIOUSLY ALLOWED ME TO SPEAK REAL QUICK IN REGARDS TO THIS EQUITY MOTION
COMMISSIONERS, YOU AND THE EXECUTIVE LEADERSHIP TEAM HAVE ALL BEEN VERY DEDICATED TO DIVERSITY EQUITY AND INCLUSION
THIS MOTIONS IS YET ANOTHER STEP IN THE PORT'S EVOLUTION TO MAKING DIVERSITY EQUITY AND INCLUSION LONG LASTING
JUST LIKE YOU'VE DONE WITH THE DIVERSITY IN CONTRACTING POLICY DIRECTIVE, A DIRECTIVE ABOUT CONDUCTING AFFIRMATIVE EFFORTS AND CONTINUING TO EXPAND OPPORTUNITIES, OUTREACH, AND TO REMOVE BARRIERS TO CONTRACTING WITH THE PORT AND INCREASING WOMEN AND MINORITY PARTICIPATION ON OUR CONTRACTS
FROM A SELFISH PERSPECTIVE THIS MOTION WILL SUPPORT THE CONTINUATION OF IDENTIFYING AND HOPEFULLY REMOVING BARRIERS
BARRIERS FOR THOSE SMALL AND DISADVANTAGED BUSINESSES WHOM ALSO LIVE, WORK, AND PLAY WITHIN THE COMMUNITY AND WHO ALSO CONTRIBUTE TO PORT OPERATIONS
THIS MOTION CAN MAKE IT EQUITABLE AND FAIR FOR ALL PARTIES
THANK YOU COMMISSIONER CHO AND COMMISSIONERS FOR THIS
THIS MOTION IS MUCH APPRECIATED
DAWN? THANK YOU SO MUCH MIAN
DAWN HUNTER, DIRECTOR OF AVIATION COMMERCIAL MANAGEMENT
I WANT TO FIRST THANK EXECUTIVE DIRECTOR OF METRUCK FOR SUPPORTING THE OFFICE OF EQUITY DIVERSITY AND INCLUSION
I WANT TO THANK LANCE LYTTLE, AVIATION MANAGING DIRECTOR, WHO IS A TRUE CHAMPION OF DIVERSITY AND SUPPORTS THE EQUITY EFFORT EVERY DAY IN WHAT HE DOES
SPECIAL THANK YOU TO THE COMMISSIONERS AND COMMISSIONER CHO FOR ALLOWING ME AND MANY OF THE MEMBERS OF THE PORT COMMUNITY TO LEND THEIR VOICES TO THIS VERY IMPORTANT MOTION
COMMISSIONERS, YOU KNOW THAT I ALWAYS SPEAK MY TRUTH
AND SO I COME IN FRONT OF YOU A TAD BIT CONFLICTED
CONFLICTED ONLY IN THE EFFORT THAT I WHOLEHEARTEDLY SUPPORT THIS MOTION AND I BELIEVE IT'S NECESSARY BUT I DON'T SUPPORT THE WORK TO TRY TO SUPPRESS LANGUAGE IN THE MOTION
SO THAT'S WHY I'M CONFLICTED
BUT WITH THAT SAID, I AGREE WITH LEANN AND MIAN
THE PORT HAS MADE GREAT STRIDES FOR MAKING THE PORT OF SEATTLE A MORE EQUITABLE PLACE TO WORK AND OPEN SPACE FOR COMMUNITIES TO DO BUSINESS WITH THE PORT
BUT THERE'S MORE WORK TO DO
MIAN AND ISERVE AS LIAISON OFFICERS BETWEEN THE PORT OF SEATTLE AND THE FAA AND THAT JOB AS LIAISON OFFICER WE HAVE A DUTY TO ENSURE THAT ALL BUSINESS TYPES HAVE FAIR AND EQUITABLE ACCESS TO BUSINESS OPPORTUNITIES AT THE PORT, TO IDENTIFY BARRIERS TO ENTRY, TO PUSH BACK ON SPECIAL INTERESTS WHO PRESENT THESE BARRIERS UNDERSTANDING THAT THEY ALREADY HAVE A STRONG ADVOCACY INSIDE THE PORT
OUR ROLL IS ALSO TO CHAMPION THE VOICE OF THE SMALL, LOCAL AND MINORITY BUSINESSES WHO DON'T CURRENTLY HAVE A VOICE AT THE EXECUTIVE LEVEL AND PROVIDE ADVOCACY ON THEIR BEHALF
THIS IS SOMETHING THAT I WANT YOU GUYS TO KNOW THAT MIAN AND I ARE VERY PASSIONATE ABOUT
THIS EQUITY MOTION WILL ALLOW OEDI TO WORK WITH DIVERSITY IN CONTRACTING, AVIATION, ALL DIVISIONS AND DEPARTMENTS TO LOOK INWARD AND PROVIDE AN EQUITY LENS ON POLICIES AND PROCEDURES THAT HAVE A DIRECT IMPACT ON LOCAL COMMUNITIES AND THEIR ABILITY TO PARTNER WITH THE PORT IN A VERY MEANINGFUL WAY
COMMISSIONER CHO, THANK YOU FOR YOUR LEADERSHIP AND I BELIEVE YOUR LEADERSHIP ON THIS MOTION WILL HELP US SUCCESSFULLY NEUTRALIZE ENTITIES THAT WANT TO MARGINALIZE AND SILENCE THE VOICE OF SMALL AND WOMEN BUSINESSES LABELING THEIR CONCERNS AS ANECDOTAL AND INCONSEQUENTIAL
THIS MOTION WILL STAND UP TO THE COMMUNITY ADVISORY BOARD TO ENSURE THAT THE PORT IS MORE ACCOUNTABLE TO THE PUBLIC
AGAIN, THANK YOU COMMISSIONERS, THANK YOU LEANNE, THANK YOU FOR ALLOWING ME TO BE A PART OF THIS
AND AGAIN, THANK YOU COMMISSIONER CHO
AND I'LL HAND IT OFF TO BOOKDHA
THANK YOU DAWN AND LEANNE
GOOD AFTERNOON COMMISSIONERS AND EXECUTIVE DIRECTOR METRUCK
MY NAME IS BOOKDA GHEISAR AND I'M THE DIRECTOR OF OFFICE OF EQUITY
I ALSO APPRECIATE THE COMMITMENT AND DEDICATION OF RESOURCES AND EFFORTS FROM THE COMMISSION AND EXECUTIVE DIRECTOR METRUCK TO ESTABLISH THE FIRST OFFICE OF EQUITY IN A PORT IN THE UNITED STATES, AND THE HONOR FOR ME TO LEAD THIS EFFORT
ONE YEAR AGO I ARRIVED AT THE PORT TO ESTABLISH THIS OFFICE AND AFTER MEETING WITH PORT LEADERSHIP, STAFF, COMMUNITY PARTNERS, AND OTHER EXTERNAL STAKEHOLDERS TO RECEIVE INPUT ON THE PORT'S VISION AND GOALS FOR EQUITY, WE CREATED TOGETHER THE PORTS OF FIRST-EVER EDI STRATEGIC PLAN WHICH INCLUDES A ROBUST COMBINATION OF LONG-TERM, SHORT-TERM, TRANSACTIONAL AND TRANSFORMATIONAL STRATEGIES
I WANT TO GIVE A SPECIAL THANK YOU TO DAWN HUNTER, MIAN RICE, ALL ERG MEMBERS, D&D COUNCIL, HR DEPARTMENT, ALL PORT EMPLOYEES WHO HAVE PARTNERED WITH EDI OFFICE AND CONTRIBUTED TO OUR EFFORTS SO FAR
THE EDI STRATEGIC PLAN FOCUSES ON THREE PILLARS: NORMALIZING RACE AND EQUITY THROUGH ACTIVITIES TO CREATE A SHARED UNDERSTANDING OF RACIAL EQUITY AND TO TRANSFORM OUR CULTURE INTO ONE THAT CENTERS EQUITY; ORGANIZING FOR RACE AND EQUITY BY BUILDING CAPACITY TO IDENTIFY AND WORK TOWARDS EQUITY GOALS; AND FINALLY OPERATIONALIZING EQUITY BY INSTITUTIONALIZING AND CREATING A MEANINGFUL SUSTAINABLE STRUCTURE FOR EDI TO BE FULLY INTEGRATED INTO OUR DAY-TO-DAY OPERATIONS
THIS MOTION IS CRITICAL IN OPERATIONALIZING EQUITY, ENSURING THAT OUR VISION AND GOALS FOR THIS WORK LIVE BEYOND ALL OF US SO THAT WITH FUTURE LEADERSHIP AND COMMISSIONERS, OUR EFFORTS TO ADVANCE RACIAL EQUITY WILL NOT BE LOST OR PUT INTO JEOPARDY
IN THE LAST YEAR WE'VE BEGUN TO IMPLEMENT THE EDI PLAN BUT I WANT TO STRESS AND HIGHLIGHT FOR YOU THAT OUR EFFORTS IN THE LAST EIGHT MONTHS DURING COVID AND THE CIVIL RIGHTS REORGANIZING HAVE ALREADY GAINED A FAIR AMOUNT OF VISABILITY AND POSITION THE PORT AS LEADER IN THE IED SPACE
I JUST WANT TO HIGHLIGHT A FEW OF OUR EFFORTS
IN NORMALIZING EQUITY, WE'VE HOSTED LEARNING EVENTS AND OPPORTUNITIES
BETWEEN THE LAST QUARTER OF 2019 AND FEBRUARY OF 2020, WE HELD A VARIETY OF EQUITY 101 TRAININGS THAT 350 EMPLOYEES ATTENDED
WE ALSO COMPLETED THE FIRST PORT READS BOOK CLUB THIS SUMMER, WHICH OVER 200 EMPLOYEES READ AND DISCUSSED SO YOU WANT TO TALK ABOUT RACE, A BOOK BY IJEOMA OLUO
IN ORGANIZING THIS SUMMER WE COMPLETED A SEVEN-PART CAUCUSING SERIES WHICH 350 EMPLOYEES PARTICIPATED
THIS WORK ALLOWED EMPLOYEES TO LEARN ABOUT WAYS TO INDIVIDUALLY AND COLLECTIVELY COMBAT RACISM AND IT CREATED OPPORTUNITIES FOR EMPLOYEES TO STRATEGIZE WITH ONE ANOTHER ABOUT HOW TO ADVANCE EQUITY AT THE PORT AND CREATE A CULTURE OF BELONGING WITHIN THE ORGANIZATION
AND WE'RE IN THE EARLY STAGES OF OPERATIONALIZING BY CREATING A CHANGE TEAM WITH OVER A HUNDRED AND TWENTY MEMBERS WHO ARE REPRESENTATIVES OF EVERY TEAM DIVISION AND PART OF THE ORGANIZATION
AND WE'RE BEGINNING TO WORK ON DEVELOPING A CURRICULUM TO PROVIDE EQUITY TRAININGS FOR ALL STAFF AT THE PORT INCLUDING SUPERVISORS AND MANAGERS
I JUST WANT TO QUICKLY MENTION A COUPLE OF OTHER EFFORTS IN OPERATIONALIZING EQUITY BY OTHER DEPARTMENTS
FOR EXAMPLE, THE PORT OF SEATTLE CENTURY AGENDA NOW INCLUDES THE GOAL OF BECOMING A MODEL OF EDI LOCALLY AND NATIONALLY
THE HR DEPARTMENT HAS MADE SIGNIFICANT PROGRESS AND IS CURRENTLY REVIEWING SEVERAL POLICIES INCLUDING TALENT ACQUISITION, EMPLOYEE RECOGNITION, ALTERNATIVE WORK ARRANGEMENTS, STANDARDS OF PERFORMANCE AND CONDUCT, CORRECTIVE ACTION AND DISCIPLINE, TO ENSURE FAIRNESS AND INCLUSIVITY
ADDITIONALLY HR DEPARTMENT HAS HELD REGULAR TOWN HALL MEETINGS WITH EXECUTIVE DIRECTOR METRUCK AND MEMBERS OF ELT TO IMPROVE TRANSPARENCY AND INCLUSION WITH STAFF AND PROVIDE STAFF WITH OPPORTUNITIES TO REACH ELT MEMBERS AND EXECUTIVE DIRECTOR METRUCK DIRECTLY TO ASK QUESTIONS
ALSO HR DEPARTMENT HAS LED AN EFFORT THAT'S RESULTED IN ADDING JUNETEENTH AS AN ORGANIZATIONAL HOLIDAY STARTING IN 2021
THESE ARE JUST EXAMPLES OF THE WORK THAT'S ALREADY UNDERWAY AND THE IMPORTANT EFFORTS THAT ARE HAPPENING PORT WIDE TO CENTER AND PRIORITIZE RACIAL EQUITY
MANY ORGANIZATIONS ATTEMPT AND CONDUCT RACE AND EQUITY ORGANIZATIONAL ASSESSMENTS
HOWEVER, OUR COMMITMENT IN THIS MOTION TO CONDUCT AN ASSESSMENT, BUT THEN TO SUBMIT AN ANNUAL PLAN EVERY YEAR MOVING FORWARD TO REPORT ON THE PROGRESS TOWARDS EQUITY GOALS IS A CRITICAL STEP TOWARDS A COMMITMENT TO INFUSE EQUITY INTO EVERY ASPECT OF THIS ORGANIZATION
IT IS CONSIDERED A BEST PRACTICE NATIONALLY TO CREATE POLICIES THAT CODIFY EDI
SO I WANT TO THANK COMMISSIONER CHO AND EXECUTIVE DIRECTOR METRUCK FOR THE EFFORTS TO BRING US TO THIS PLACE
AGAIN
THIS MOTION IS ESSENTIAL TO ENSURING THAT THE WORK CONTINUES AND I THANK YOU TO ALL COMMISSION MEMBERS FOR SUPPORTING THE WORK AND I BELIEVE I'M TURNING THIS OVER NOW TO COMMISSIONER CHO
THANK YOU SO MUCH
THANK YOU PRESIDENT STEINBREUCK
FIRST AND FOREMOST, LET ME JUST START OFF BY THANKING THE STAFF LEANNEJURADO, BOOKDA GHEISAR, MIAN RICE, DAWN HUNTER
THERE HAVE BEEN JUST SO MANY PEOPLE, KATIE GERARD, SO MANY PEOPLE WHO HAVE BEEN INVOLVED IN THIS PROCESS
IT'S BEEN A SIX MONTH LONG PROCESS AND SO I JUST WANT TO THANK YOU ALL FOR ALL THE WORK
JUST TO LEVEL SET AND GIVE SOME CONTEXT
THE GENESIS FOR THIS MOTION STARTED BEFORE MY TIME, YOU KNOW, AS SO MANY OF THE STAFFERS TODAY HAVE MENTIONED THAT THE OFFICE OF EDI WAS STOOD UP BEFORE I GOT HERE AND THE WORK WAS UNDERWAY, BUT THE MOST RECENT PROTESTS AND TRAGIC KILLINGS OF SO MANY PEOPLE IN THE BLACK COMMUNITY HAS SPARKED A REVIVAL AND AWARENESS TOWARDS RACIAL INJUSTICE IN ALL OUR COMMUNITIES
AND AS YOU ALL REMEMBER, I BELIEVE IT WAS BACK IN MAY, WE PASSED A MOTION ON POLICING POLICY, ONE THAT REALLY DID SOMETHING SIMILAR WITH OUR POLICE DEPARTMENT
I FELT VERY STRONGLY AT THE TIME THAT WHILE THIS MOTION WAS APPROPRIATE, THAT WE SHOULD ALSO DO A MOTION THAT TACKLED INEQUITY AND RACIAL BIAS AS AN ORGANIZATION AS A WHOLE AND NOT JUST POLICING
BECAUSE WE ALL KNOW THAT THE FIGHT FOR SOCIAL EQUITY IS BEYOND JUST POLICING
YOU KNOW POLICING MIGHT BE IN THE SPOTLIGHT TODAY, BUT WE ALL KNOW THAT SYSTEMIC RACISM AND INSTITUTIONALIZED RACISM EXISTS IN MANY FACETS
AND SO, YOU KNOW AS AN ENTITY, AS THE PORT OF SEATTLE, WHICH IS THE LARGEST PUBLIC ECONOMIC CATALYST IN THE REGION, I TRULY BELIEVE THAT WE NEED TO MAKE SURE THAT THAT ECONOMIC CATALYST IS REACHING EVERYBODY
WHEN I WAS, YOU KNOW, INTERVIEWING FOR THIS JOB I USED TO HAVE A LINE THAT SAID A RISING TIDE SHOULD LIFT ALL BOATS AND I TRULY BELIEVE THAT AS AN ORGANIZATION WE ARE UNIQUELY SITUATED WHERE WE, ESPECIALLY IN THE TIME OF COVID AND SUCH PAIN AND HARDSHIP TOWARDS COMMUNITIES THAT ARE UNDERSERVED, THAT WE HAVE AN OUTSIZED RESPONSIBILITY TO ENSURE THAT WE ARE BEING EQUITABLE IN EVERYTHING THAT WE DO AND SO I'M EXTREMELY PROUD TO BRING THIS MOTION TODAY IN FRONT OF YOU
ONE LAST PIECE OF CONTEXT HERE
WHILE THIS MOTION IS BEING VOTED ON BY THE COMMISSIONERS AND PRESENTED FROM THE TOP DOWN, THIS MOTION WAS CRAFTED VERY MUCH FROM THE BOTTOM UP
AND WHAT I MEAN BY THAT IS THAT OVER THE LAST SIX MONTHS, I'VE HAD THE HONOR AND PRIVILEGE OF MEETING WITH EVERY SINGLE EMPLOYEE RESOURCE GROUP WITHIN THE ORGANIZATION
EVEN ERG'S THAT DON'T YET EXIST
AND GETTING THEIR INPUT AND THEIR THOUGHTS AND THEIR EXPERIENCES HERE AT THE PORT AND AREAS AND CREVICES THAT WE MAY MISS AS COMMISSIONERS
AND THE REASON TO ME THIS IS SO IMPORTANT IS BECAUSE YOU KNOW, SOMETIMES WE FORGET THAT OUR EXPERIENCE AS COMMISSIONERS IS VERY DIFFERENT FROM EVERYDAY EMPLOYEES AT THE PORT
WE DO NOT GO THROUGH THEIR TYPICAL APPLICATION PROCESS TO GET OUR JOBS
WE ARE ELECTED OFFICIALS
WE DO NOT GO THROUGH A PROMOTION PROCESS LIKE TYPICAL PORT EMPLOYEES RIGHT? OUR PROMOTION IS, YOU KNOW RUNNING FOR A DIFFERENT OFFICE OR BECOMING THE COMMISSION PRESIDENT
WE DON'T GO THROUGH A PERFORMANCE REVIEWS IN THE TRADITIONAL SENSE
WE DON'T GO THROUGH PAY RAISE OR PAY REVIEWS
IT'S ALL FIXED
AND SO OUR EXPERIENCE AS COMMISSION IS VERY MUCH NARROWER IN SCOPE AND I WANTED TO MAKE SURE THAT IF WE'RE GOING TO BE INTRODUCING A MOTION THAT TACKLES INEQUITIES ACROSS THE INSTITUTION THAT AFFECTS ALL OUR EMPLOYEES, THEN WE SHOULD GO TO THE EMPLOYEES FOR THEIR INPUT
AND SO THAT'S WHAT WE DID
WE MET WITH EVERYONE THAT WAS WILLING TO MEET AND YOU KNOW, I THINK THAT WHAT WE'VE COME UP WITH HERE IS A TREMENDOUS PIECE OF HISTORY, REALLY
I'M VERY VERY PROUD OF IT
I'M REALLY EXCITED TO SEE WHAT COMES OUT OF IT
AND THIS IS JUST THE BEGINNING OF THIS CONVERSATION, CERTAINLY NOT THE END
AND I REALLY LOOK FORWARD TO RE-ENGAGING WITH EVERYONE WHO HAS A STAKE IN THIS
AND SO I URGE YOUR SUPPORT FOR THIS MOTION
THANK YOU
OKAY THANK YOU COMMISSIONER CHO
LET'S OPEN IT UP FOR COMMISSIONER QUESTIONS AND COMMENTS AT THIS TIME
CLERK? THANK YOU BEGINNING WITH COMMISSIONER FELLEMAN FOR YOUR COMMENTS
I JUST WANTED TO THANK THE STAFF AND COMMISSIONER CHO FOR YOUR LEADERSHIP AND EFFORT TO GET THIS OFF THE GROUND
AND YOU KNOW THIS IS SOMETHING WE FULLY EXPECTED OUR OFFICE TO TACKLE AND EMBRACE AND CONTINUE TO GO ABOVE AND BEYOND OUR EXPECTATIONS AND IT EVEN INCLUDES MAKING SURE THAT COMMISSIONERS ARE EDUCABLE
SO I AM HAPPY TO BE PART OF THIS EFFORT
THANK YOU FOR YOUR COMMENTS
COMMISSIONER CHO
ANY ADDITIONAL COMMENTS RIGHT NOW OR WOULD YOU LIKE TO JUST WRAP UP AFTER THIS AS WE GO THROUGH EVERYONE
I'VE SAID MY PIECE SO I'LL PASS IT ON
THANK YOU COMMISSIONER CALKINS
THANKS TO BOTH BOOKDA AND LEANNE FOR THE PRESENTATION AND TO SAM FOR THE REMARKS ABOUT THE PROCESS OF AND NECESSITY OF THIS RESOLUTION
I'M DEFINITELY IN SUPPORT OF IT
AND I ALSO WANT TO SAY THAT AS YOU KNOW, I HEARING DAWN'S COMMENTS
I WANT TO REMIND US THAT THIS IS A SIMPLY THE NEXT STEP IN A CONTINUING CONVERSATION AROUND RACE AND EQUITY AT THE PORT OF SEATTLE
AND WHEN I JOINED I WAS LUCKY TO BENEFIT FROM SOME OF THE GREAT BUILDING WORK THAT THE PREVIOUS COMMISSION HAD INITIATED
STEVE AND I CAME, EXECUTIVE DIRECTOR METRUCK AND I CAME IN AT THE SAME TIME AND AND WERE ABLE TO PARTICIPATE IN THE DECISION-MAKING AROUND SOME OF THE INITIAL STEPS INCLUDING THE ESTABLISHMENT OF THE OFFICE OF EQUITY DIVERSITY AND INCLUSION
AND I SEE THIS RESOLUTION AS A WAY TO SAY, LET'S BUILD ON THE WORK THAT BOOKDA HAS STARTED IN THAT OFFICE AND CONTINUE TO SUPPORT AS A PUBLIC AGENCY COMMUNITY-WIDE EFFORTS TO DO THAT
WE DID JUST TODAY RECEIVE PUBLIC COMMENT FROM ONE OF THOSE PILLAR EXTERNAL STAKEHOLDERS, EL CENTRO DE LA RAZA, AND THEY HAVE ASKED THAT WE CONSIDER AN ADDITION TO THIS RESOLUTION AND SO I DID WANT US TO CONSIDER DISCUSSING WHAT THEIR REQUEST WAS AND SO I'M GOING TO BRIEFLY FIND IT AND READ IT INTO THE RECORD IF WE THINK WE HAVE TIME FOR THAT
OKAY
I'M FINDING IT HERE
OKAY, THEIR PARTICULAR REQUEST IS THEY SAY QUOTE WE STRONGLY RECOMMEND THAT THE OEDI SCOPE INCLUDES PROACTIVE IMPLEMENTATION OF AN INTERNAL MONITORING ROLE FOR ONE TITLE SIX OF THE 1964 CIVIL RIGHTS ACT AS AMENDED TO ENSURE EQUAL ACCESS TO PROGRAMS SERVICES AND FACILITIES REGARDLESS OF RACE, COLOR, NATIONAL ORIGIN, GENDER, ETC BY ENTITIES RECEIVING FEDERAL MONIES; AND TWO THE PRESIDENTIAL ORDER ON ENVIRONMENTAL JUSTICE
SO, I GUESS I WANT TO ASK STAFF, HAS THIS BEEN PART OF THE CONVERSATION WITH EXTERNAL STAKEHOLDERS OR IS THIS A NEW ADDITION TO THE CONVERSATION? THIS IS A NEW EDITION AS FAR AS I'M AWARE
IT'S A NEW EDITION
IT'S A BIG ONE
AT THIS POINT I FEEL ILL EQUIPPED TO BE ABLE TO ANSWER THIS
AND SO I GUESS I WANT TO TURN TO SAM AND SAY SAM, DO YOU THINK WE SHOULD PASS THE RESOLUTION AS IS OR AND LOOK AT HOW WE MIGHT AUGMENT IT WITH SOMETHING ELSE OR DO WE CONSIDER TABLING SO THAT WE CAN INCORPORATE THIS REQUEST INTO DISCUSSIONS? AND I KNOW WE HAVE A TIGHT SCHEDULE THROUGH THE REMAINDER OF THE YEAR, BUT I DO WANT TO BE COGNIZANT OF THE REQUEST OF KEY STAKEHOLDERS
LOOKS LIKE LEANNE AND BOOKDA HAVE THEIR HANDS UP
SO I'LL LET THEM CHIME IN FIRST
I JUST WANT TO CLARIFY THAT THIS IS A MOTION, NOT A RESOLUTION
BUT WE DO HAVE A PART OF THE MOTION IS TO CONTINUE THE WORK OF THE MOTION FROM 2018 TO WORK ON A POLICY DIRECTIVE, AN EQUITY POLICY DIRECTIVE, WHEREIN WE MEET THEN HAVE THE TIME TO CONSIDER THE RECOMMENDATIONS THAT WAS BROUGHT UP BY EL CENTRO TODAY
JUST WANT TO PUT THAT OUT THERE
BOOKDA, DID YOU HAVE A THOUGHT? YES, I AGREE WITH LEANNE
CERTAINLY THE EL CENTRO DE LA RAZA PROPOSAL THAT THE CIVIL RIGHTS ACT AND CIVIL RIGHTS FRAMING OF THIS WORK WOULD BE A CENTRAL PIECE OF THE MOTION
SOUNDS GREAT TO ME
AND I THINK IT'S SOMETHING THAT WE CAN INCLUDE IN OUR ASSESSMENT IN A YEAR FORWARD AND FIND WAYS FOR THE POLICY DIRECTIVE NEXT YEAR TO CENTER A CIVIL RIGHTS FRAMING ALONG WITH EQUITY
I WOULD LOOK FORWARD TO DOING THAT WORK
PETE RAMBLES I THINK HAD A COMMENT AS WELL, PETE, DO YOU WANT TO CHIME IN? YES
THANK YOU
WITH REGARDS TITLE 6, I JUST WANTED TO LET EVERYBODY KNOW WE DO HAVE A TITLE SIX PROGRAM AT THE PORT OF SEATTLE
WE DO ANNUAL REPORTS ON IT AND DO HAVE MONITORING BUT YOU KNOW, THERE'S OBVIOUSLY ROOM FOR ADDITIONAL CONSIDERATION OF THAT PROGRAM AND THE REQUEST HAS BEEN MADE
WITH THAT
I WOULD SUGGEST THAT WE DO HAVE A MECHANISM FOR TAKING THESE CONCERNS AND ADDRESSING THEM ON A OPERATIONAL MEANS AND I THINK THAT'S THROUGH YOUR OFFICE BOOKDA SO AND THROUGH THE POTENTIALLY A POLICY DIRECTIVE AND ALSO YOUR WORK PLAN
SO I THINK WE CAN PROCEED WITH THE CONSIDERATION TODAY
AND ESTELLA ORTEGA ALSO REQUESTED SHE OR HER APPOINTEE BE DESIGNATED FOR JOINING THE EQUITY COMMUNITY ADVISORY COMMITTEE
SO THAT WOULD BE A GREAT OPPORTUNITY TO INCLUDE THE EL CENTRO DE LA RAZA COMMUNITY IN THE ONGOING WORK AND DIALOGUE
OKAY
LET'S CONTINUE ON THE CALL FOR COMMISSION QUESTIONS
COMMENTS
WHO'S NEXT? I WAS TRYING TO UNMUTE MYSELF
IT'S COMMISSIONER BOWMAN
GREAT
THANK YOU FOR THE OPPORTUNITY TO CHIME IN
FIRST I REALLY WANT TO EXTEND MY THANKS AS WELL TO THE STAFF BOTH BOOKDA AND LEANN WHO WORKED ON THIS SO HARD AND ALSO OTHERS THAT CAME BEFORE THEM IN PARTICULAR LUIS NAVARRO AND MIAN RICE
IN MY ALMOST EIGHT YEARS ON THE COMMISSION, I'LL SAY THERE'S BEEN AN ONGOING, PEOPLE WANTED TO WORK ON THESE ISSUES FOR A NUMBER OF YEARS AND WHILE IT'S BEEN IN FITS AND STARTS, I REALLY APPRECIATE COMMISSIONER CHO'S LEADERSHIP IN BRINGING THIS FORWARD
THIS IS THE RIGHT TIME AND WE NEED TO REALLY LEAN INTO THIS
BUT I DO WANT TO MAKE SURE THAT WE RECOGNIZE THOSE THAT CAME BEFORE AND THE WORK THAT THEY DID
MANY YEARS AGO WE STARTED THIS ANOTHER PROCESS OF DIVERSITY IN CONTRACTING WHICH NEEDS TO CONTINUE ON AND BE BEEFED UP BUT THE EQUITY MOTION IS I THINK THE NEXT STEP IN THAT
MAKING SURE THAT IN ALL OF THE DEPARTMENTS OF THE PORT OF SEATTLE, IN ALL OF THE WORK THAT WE DO, WE'RE CONSIDERING ARE IMPACTED ON THOSE MOST DISADVANTAGED AND FINDING A WAY TO BRING THEM TO THE TABLE
SO AGAIN SAM, THANK YOU SO MUCH FOR YOUR LEADERSHIP
YOU'VE BEEN JUST A HUGE CONTRIBUTOR IN YOUR SHORT TIME AT THE PORT AND REALLY WANT TO COMPLIMENT YOU AS WELL FOR THE JOB THAT YOU DID IN REACHING OUT TO ALL OF THE STAKEHOLDERS IN THE PORT FAMILY
REALLY GETTING THEIR FEEDBACK ON THIS WAS ABSOLUTELY CRITICAL AND THANK YOU FOR ALL THAT PARTICIPATED
SO HAPPY TO MOVE THIS FORWARD.- COMMISSIONER STEINBREUCK BEFORE YOUR COMMENTS I JUST WANT TO NOTE THAT I BELIEVE WE NEED A MOTION TO ADOPT THIS MOTION 2020-19 BEFORE THIS CONVERSATION IS ALL SAID AND DONE
I THINK I HAD A CUT AND PASTED IN THE SCRIPT
SO IT'S NORMALLY THERE'S A MOTION THEN A SECOND TO OPEN THE DISCUSSION
SO LET'S ASK FOR A MOTION COMMISSIONER CHO? MOTION TO PASS THIS MOTION
OKAY, I THINK I HEARD A SECOND FROM COMMISSIONER FELLEMAN
IT'S BEEN MOVED AND SECONDED
WE'LL CONTINUE WITH COMMISSIONER COMMENTS AND QUESTIONS
COMMISSIONER FELLEMAN, I THINK IS UP NEXT
YEAH, ACTUALLY THAT'S ON YOU COMMISSIONER STEINBREUCK
ALL RIGHT
WELL, I WILL JUST MAKE SOME CONCLUDING REMARKS ALSO TO EXPRESS A TREMENDOUS APPRECIATION FOR COMMISSIONER CHO AND HIS LEADERSHIP STEPPING OUT HERE AND TAKING THIS ON IN A BIG WAY
I THINK THIS IS PROBABLY MOST COMPREHENSIVE EFFORT TO DATE ON TO BE UNDERTAKEN AT THE PORT OF SEATTLE AROUND REMOVING INSTITUTIONAL BARRIERS AROUND EQUITY AROUND SYSTEMIC RACISM AND ADVANCING DIVERSITY INCLUSION AND EQUITY FOR ALL
AND I VERY MUCH APPRECIATE AND UNDERSCORE THE EFFORT PARTICULARLY TO WORK FROM THE BOTTOM UP ON THIS
NOT TO SAY ANYBODY'S AT THE BOTTOM BUT SOME PERCEIVE THAT WE'RE ON THE TOP
SO [LAUGHTER] IT'S ALWAYS IMPORTANT WITH MATTERS SUCH AS THIS THAT INVOLVE OUR PORT COMMUNITY THAT WE DO TALK DIRECTLY TO AFFECTED EMPLOYEES AND TAP THE TREMENDOUS RESOURCES WE HAVE
HUMAN RESOURCES
KNOWLEDGE AND INSIGHTS
CULTURAL UNDERSTANDING
ALL OF THESE THINGS THAT OUR EMPLOYEES COLLECTIVELY AND IN A VERY DIVERSE WAY CAN CONTRIBUTE
SO I THINK THAT IS ONE OF THE BEST THINGS THAT WE COULD DO
SO GREAT
GREAT EFFORT
A BIG STEP FORWARD IN LAUNCHING THIS TODAY
IT DOES BUILD ON PAST WORK, AND IT ALSO RECOGNIZES THE WORK THAT HAS BEEN DONE AND WHAT MORE NEEDS TO BE DONE
SO I LOOK FORWARD TO SEEING PROGRESS OVER TIME
IT'S NOT GOING TO BE AN OVERNIGHT SLAM DUNK
IT'S GOING TO TAKE TIME AND EFFORT AND COMMITMENT ON THE PART OF ALL OF OUR PORT EMPLOYEES
I KNOW THAT THERE'S MANY PEOPLE IN THE COMMUNITY ITCHING TO GET MORE INVOLVED AND ACTUALLY HAVE THIS EFFORT EXPANDED, BUT I THINK WE NEED TO HAVE OUR COMMUNITY IN A PLACE WHERE WE CAN DO MORE IN THE FUTURE AND EXTEND THESE EFFORTS WELL BEYOND THE INSTITUTIONAL ASPECTS OF THIS MOTION
SO WITH THAT I'D LIKE TO JUST END WITH A QUOTE FROM THE DOCTOR REVEREND MARTIN LUTHER KING JR
WHEREBY HE SAYS HUMAN PROGRESS IS NEITHER AUTOMATIC NOR INEVITABLE
EVERY STEP TOWARD THE GOAL OF JUSTICE REQUIRES SACRIFICE, SUFFERING, AND STRUGGLE
THE TIRELESS EXERTIONS AND PASSIONATE CONCERN OF DEDICATED INDIVIDUALS
AND I THINK THAT SAYS IT VERY APPROPRIATELY AS TO THIS EFFORT
THANK YOU
COMMISSIONER STEINBREUCK, COMMISSIONER CHO DOES HAVE A CLOSING COMMENT
I REALLY JUST WANTED TO TAKE A MINUTE
I FORGOT I WANT TO THANK EXECUTIVE DIRECTOR STEVE METRUCK ALSO FOR HIS PARTICIPATION IN THIS PROCESS AND HIS OPEN-MINDEDNESS TOWARDS THIS
IT WAS VERY MUCH APPRECIATED AND I LOOK FORWARD TO SEEING THE FRUITS OF HIS LABOR
OKAY, VERY GOOD
CLERK PLEASE CALL THE ROLL
THANK YOU BEGINNING WITH COMMISSIONER
FELLEMAN
AYE
THANK YOU
COMMISSIONER CHO
AYE
THANK YOU
COMMISSIONER CALKINS
AYE
COMMISSIONER BOWMAN
AYE
THANK YOU
COMMISSIONER STEINBREUCK
YES
THANK YOU
YOU HAVE FIVE YESES AND 0 NOS
OKAY, THE MOTION CARRIES
WELL, LET'S GET TO WORK
WITH THAT WE CAN MOVE ON NOW TO AGENDA 9 WHICH IS PRESENTATIONS, REPORTS, STAFF BRIEFINGS AND WE WILL RETURN TO AUTHORIZATIONS AND FINAL ACTIONS AS THE AGENDA WAS AMENDED PREVIOUSLY
I'LL GO AHEAD AND READ ITEM 9A INTO THE RECORD COMMISSIONER STEINBREUCK
THIS IS ITEM 9A THE 2021 MARITIME AND EDD BUDGETS AND PORT WIDE ROLL UP BRIEFING
COMMISSIONERS, THIS PRESENTATION IS PART OF OUR SERIES OF BRIEFINGS ABOUT THE 2021 BUDGET PROCESS
I WILL KICK OFF THE PRESENTATION AND THEN HAND OVER TO OUR PRESENTERS
THE PRESENTERS TODAY ARE STEPHANIE JONES STEBBINS, MANAGING DIRECTOR OF MARITIME, DAVID MCFADDEN, MANAGING DIRECTOR ECONOMIC DEVELOPMENT, MICHAEL TONG, DIRECTOR OF CORPORATE BUDGET AND KELLY ZUPON, DIRECTOR SEAPORT FINANCE AND BUDGET, AND DAN THOMAS, CHIEF FINANCIAL OFFICER
OKAY, EXECUTIVE DIRECTOR
AND JUST TO KICK THIS OFF I'M GOING TO TURN IT RIGHT OVER TO STEPHANIE JONES STEBBINS TO GET RIGHT INTO THE PRESENTATION
SO I'M MAKING EFFICIENT USE OF OUR TIME
VERY GOOD
THANKS
AND DO I NEED TO BRING UP THE PRESENTATION? I WILL DO THAT IN JUST A MOMENT
VERY GOOD
SO AS WE WAIT FOR THE PRESENTATION TO COME UP I'LL JUST SHARE THAT WE'RE GOING TO START WITH THE MARITIME OPERATING BUDGET AND THEN DAVE MCFADDEN AND KELLY WILL TALK THROUGH THE ECONOMIC DEVELOPMENT DIVISION OPERATING BUDGET AND THEN WE'LL GO THROUGH THE CIP FOR BOTH OF OUR DIVISIONS COMBINED
NEXT SLIDE, PLEASE
YEAH, THANKS
SOME LOVELY PICTURES OF THE DIVERSITY OF THE MARITIME DIVISION
NEXT SLIDE AGAIN
SO WE DID NOT INCLUDE SOME OF THE SLIDES THAT YOU SAW THIS MORNING IN THE AVIATION DIVISION BUDGET, BUT THE CONNECTION BETWEEN THE CENTURY AGENDA AND OUR LONG-RANGE PLAN AND OUR BUDGET AND THEN OUR ACTION PLANS IS THE SAME THROUGHOUT THE DIVISION, SO WE DIDN'T WANT TO SPEND YOUR TIME ON THOSE BUT I'LL JUST SPEND A SECOND TALKING ABOUT THE CENTURY AGENDA DRIVING THE DIVISION PLANS AND BUDGET AND WHILE WE DO, OF COURSE WORK IN MANY OF THE AREAS WHAT THE MARITIME DIVISION ITSELF WILL JUST BE FOCUSING ON, REPORTING OUT ON, WOULD BE ECONOMIC GROWTH IN OUR REGION WITH THE SPECIAL FOCUS ON MARITIME PROJECTS, OF COURSE, AND BEING THE GREENEST AND MOST ENERGY-EFFICIENT PORT IN NORTH AMERICA
SO WE LOOK AT DELIVERING PROJECTS AT OUR CRUISE OPERATIONS AND THEN VARIOUS METRICS OF OUR ENVIRONMENTAL SUSTAINABILITY SUCH AS PERCENTAGE OF GREENHOUSE GASES COMPARED TO 2005
WE MEASURE MANY THINGS
THESE ARE JUST A HANDFUL THAT RELATE MOST DIRECTLY TO THE CENTURY AGENDA
AND AS YOU HEARD EARLIER TODAY, THESE WILL BE REPORTED OUT ON TO THE COMMISSION PERIODICALLY
SLIDE
THIS IS A SLIDE SHOWING HOW THE DIFFERENT MARITIME PRIORITIES FIT TOGETHER
THE WAY I THINK OF THEM STRATEGICALLY ACROSS THE BOTTOM OF THE PYRAMID IS REALLY THE FOUNDATION OF OUR DAY-TO-DAY WORK AROUND FINANCIAL SUSTAINABILITY AND SAFETY AND RESILIENCY, ESPECIALLY
AS WE GO UP TOWARDS THE TOP OF THE PYRAMID LONGER TERM STRATEGIES AROUND SUSTAINABILITY INNOVATION AND EQUITY ARE REALLY IMPORTANT TO THE LONG TERM SUSTAINABILITY OF THE MARITIME INDUSTRY
I WANT TO POINT OUT THAT DURING THIS TIME RIGHT NOW OF COVID, OF THE DIFFICULT ECONOMY, REALLY REQUIRES THAT WE FOCUS ON OUR FOUNDATION AND YOU WILL SEE A REAL FOCUS ON FINANCIAL SUSTAINABILITY AND SAFETY AND RESILIENCY IN OUR BUDGET
AND OF COURSE, WE DO CONTINUE MOVING FORWARD ON SUSTAINABILITY INNOVATION AND EQUITY
SLIDE, PLEASE
I WANTED TO SHARE A LITTLE BIT OF INFORMATION ABOUT THE STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS FOR OUR DIVISION
LOOKING EXTERNALLY ON THIS SLIDE OPPORTUNITIES AND THREATS JUST A COUPLE THINGS
AS WE RESTART CRUISE THERE IS AN OPPORTUNITY FOR THE PORT OF SEATTLE'S LEADERSHIP THAT WE HAVE SEEN IN ENVIRONMENTAL SUSTAINABILITY, THINGS WE'VE INTRODUCED HAVE HERE AT THE PORT HAVE BEEN ADOPTED AROUND THE WORLD IN THIS INDUSTRY AND WE DO HAVE THE OPPORTUNITY TO REALLY DRIVE BEST PRACTICES IN THE INDUSTRY
CONNECTING THE TECH AND MARITIME SECTORS
YOU WERE UNIQUELY SITUATED GLOBALLY TO BE ABLE TO DO THAT
AND THEN FINALLY DIVERSIFYING THE SECTOR BRINGING REALLY ATTENDING TO THE CURRENT ISSUES ON SOCIAL JUSTICE FOCUS ON SOCIAL JUSTICE AND THAT WE HAVE JUST HEARD OF COURSE ABOUT THE IMPORTANCE OF THAT
WE HAVE AN OPPORTUNITY TO DIVERSIFY THIS SECTOR WHICH HISTORICALLY ESPECIALLY IN SEATTLE HAS NOT BEEN DIVERSE, BUT BRINGING YOUTH OF COLOR AND UNDERREPRESENTED YOUTH INTO THE FIELD
THERE ARE THREATS CERTAINLY THE UNCERTAINTY OF THE GLOBAL CRUISE INDUSTRY RIGHT NOW IS FRONT AND CENTER IN THOSE THREATS
COVID-19 REGULATORY ISSUES AND THE RECESSION REALLY IMPACTS ALL OF OUR INDUSTRIES
NEXT SLIDE
THE NEXT SLIDE WILL LOOK A LITTLE BIT MORE INTERNALLY AT THERE WE GO AT OUR STRENGTHS AND WEAKNESS
ONE THING THAT IS REALLY HIGHLIGHTED TO ME DURING THIS TIME HAS BEEN THE INCREDIBLE DIVERSITY OF BUSINESSES WE HAVE IN THE MARITIME PORTFOLIO
WHEN WE LOOK AT THE IMPACT, OF COURSE TO CRUISE, BUT WE SEE THAT BECAUSE WE HAVE FISHING, WE HAVE REC, BOATING, WE HAVE INDUSTRIAL REAL ESTATE, WE HAVE THE GRAIN MARKET
BETWEEN ALL OF THOSE THEY'VE BEEN IMPACTED IN DIFFERENT WAYS ALLOWING WITH THE DOWNTURN AND CRUISE AND THE LACK OF A CRUISE SEASON IN THIS YEAR 2020, THE DIVERSITY OVERALL OF THE DIVISION HAS REALLY ALLOWED US TO BE STRONG IN OTHER AREAS
WE'VE ALSO SHOWN AS I KNOW THE WHOLE PORT HAS AN ABILITY TO ADAPT TO THE SITUATION THAT WE HAVE BEEN IN
OF COURSE WE SEE MANY OF US WORKING FROM HOME BUT WE'VE ALSO BEEN CONTINUING OPERATING OUR FACILITIES THAT SERVE OUR FISHING FLEET, THAT SERVE OUR LIVE ABOARD COMMUNITIES AT FISHERMAN'S TERMINAL
SO WE HAVE HAD TO CONTINUE OPERATING THOSE FACILITIES WHILE MAINTAINING SOCIAL DISTANCE
SOME PEOPLE WORKING AT HOME EMPLOYING NEW TECHNOLOGIES TO BE ABLE TO DO THAT SAFELY
SO I'VE SEEN A REAL STRENGTH THERE
AND THEN FINALLY WE DO KNOW THAT WE WILL CONTINUE TO SEE CHALLENGES FROM THAT REQUIREMENT TO SOCIAL DISTANCE AND AS WE WILL SEE IN THE NEXT COUPLE COUPLE SLIDES THERE IS SIGNIFICANT CONSTRAINT ON CAPITAL CAPACITY, WHICH IS A REAL SIGNIFICANT WEAKNESS AS I SEE IT
NEXT SLIDE, PLEASE
AND I'M GOING TO TURN THIS OVER NOW TO KELLY ZUPON TO TALK ABOUT THE SPECIFIC BUDGET NUMBERS AND I'M OF COURSE HERE FOR QUESTIONS AS WELL
KELLY? GOOD AFTERNOON COMMISSIONERS
FIRST OFF I WANT TO SAY ONE THING WE DIDN'T ADD HERE IS ALSO THAT THERE WILL BE A SEAPORT ALLIANCE BUDGET STUDY SESSION ON THE 28TH OF OCTOBER AND NOVEMBER 17TH AS WELL
SO WE WON'T BE ADDRESSING ANYTHING RELATED TO THAT IN THIS PRESENTATION
FOR THE MARITIME BUDGET AS YOU CAN SEE REVENUE IS DOWN SEVENTEEN POINT SEVEN MILLION OR 28% AND THE EXPENSES ARE DOWN FROM THE 2020 BUDGET ABOUT 4.2 MILLION DOLLARS
THE BIG-BUDGET DRIVERS HERE ARE THE IMPACT OF THE CORONAVIRUS OBVIOUSLY, PARTICULARLY ON CRUISE BUSINESS
AND PORT WIDE SHORT TERM CASH NEEDS BOTH HERE AND AT THE AIRPORT
WE FOLLOWED EXECUTIVE GUIDANCE AND REALLY GENERATED WHAT WOULD AMOUNT TO BE A ZERO BASED BUDGET LOOKING AT LINE ITEMS DOWN TO THE HUNDREDS OF DOLLARS ON HERE
IT WAS THE TIGHTEST BUDGET THAT I'VE SEEN IN THIS NOW BEING THE THE SIXTH BUDGET HERE AT THE PORT FOR MYSELF
WE DEFAULTED TO DEFERRING ANY OPEN FT POSITIONS TO 2022 AND A ZERO NET PAY INCREASE OR EQUIVALENT FOR ALL EMPLOYEES
IN THE PAST WE'VE ALSO SPOKEN ABOUT TRYING TO GET TO A NET POSITIVE NOI BY THE YEAR 2024
WE'RE RE-EVALUATING THAT GOAL GIVING THE THE REDUCED DEMAND AND SOME OF OUR BUSINESSES AND YOU KNOW THE IMPACT OF THE COVID-19
NEXT SLIDE, PLEASE
OKAY, AS I SAID EARLIER REVENUES ARE DOWN 28 PERCENT
CRUISE IS FORECAST TO ABOUT 25% OF THE ORIGINAL ESTIMATE
WE DO HAVE QUITE A FEW SAILINGS RESERVED FOR THE YEAR, BUT THERE IS SIGNIFICANT UNCERTAINTY ON THOSE
GRAIN IS ACTUALLY SEEING AN UPTICK FROM FEEDSTOCK DEMAND IN CHINA AND OUR COMMERCIAL FISHING AND RECREATIONAL BUSINESSES ARE MOVING FORWARD
NO INCREASE IN TARIFFS EXPECTED FOR NEXT YEAR
BUT WE ARE STILL SEEING DEMAND FOR MOORAGE OUT THERE
NEXT SLIDE, PLEASE
NEXT SLIDE, PLEASE
I THINK YOU SKIPPED AHEAD TWO SLIDES ACTUALLY
OKAY
NOW I WILL SPEAK THROUGH THE EXPENSES HERE
COMPARED TO 2020 APPROVED BUDGET EXPENSES ARE DOWN ABOUT 8%
THE BIG REDUCTION IS REALLY DEFERRING 11 FTE'S TILL 2022 OR LATER DEPENDING ON CIRCUMSTANCES
OUR DIRECT EXPENSES ARE DOWN ABOUT 1.7 MILLION FROM THAT DEFERRED HIRING
WE ALSO REDUCE SOME PORT VALET COSTS, ALTHOUGH IT'S NOT A ONE-TO-ONE BECAUSE WE EXPECT THE PER PASSENGER RATE TO INCREASE A LITTLE BIT
WE RIGHT SIZE SECURITY AND ELIMINATED THE BULK OF DISCRETIONARY SPEND
OUR SUPPORT SERVICES ARE DOWN 2.1 MILLION
WE REDUCED A FEW PROJECTS USING OUTSIDE SERVICES AND DEFERRED SOME FTES AND THOSE GROUPS
AND CENTRAL SERVICES ARE DOWN FROM GENERAL COST-CUTTING INITIATIVES
OVERALL, AGAIN EXPENSES DOWN ABOUT 8% NEXT SLIDE, PLEASE
OKAY, AND HERE'S THE TOTAL ROLL UP FOR THE MARITIME DIVISION
YOU CAN SEE OPERATING INCOMES DOWN ABOUT 13 AND A HALF MILLION DOLLARS FROM WHAT 2020 APPROVED BUDGET LOOKED LIKE
AGAIN THIS IS MOSTLY DRIVEN BY THE CRUISE BUSINESS AND YOU'LL SEE THAT SORT OF PERMEATE THROUGHOUT THE PRESENTATION
THAT BEING A REALLY HIGH MARGIN BUSINESS FOR US
WE DON'T SEE A LOT OF COST SAVINGS IN THE CRUISE BUSINESS DESPITE LOSING A LOT OF THE REVENUE THERE
ONE KEY TAKEAWAY FROM THIS SLIDE IS THAT YOU'LL SEE IN 2020 OUR FORECAST IS ABOUT 19 MILLION DOLLARS LESS AND OPERATING PROFIT AND IN 2021 WE'RE ABOUT 18 MILLION LESS THAN WHAT WE HAD FORECASTED
YOU'LL SEE THIS A LITTLE LATER ON WHEN WE START WORKING THROUGH OUR CIP AND THIS IS A REAL BIG DRIVER OF WHY WE'VE HAD SOME REDUCTION IN THE CIP AMONGST OTHER THINGS
ANY QUESTION OR SHOULD WE MOVE TO THE NEXT SLIDE? OKAY, AGAIN, THIS REALLY ACCENTUATES THE TREND HERE FOR THE DIVISION AS A WHOLE WITH THE CRUISE REDUCTION IN TOTAL REVENUE
YOU CAN SEE WE STARTED OUT 2020 COVERING A BULK OF DEPRECIATION WITH OUR REVENUES AND AS WE'VE GONE FURTHER WE REVISED IT DOWN IN 2020 AND A LITTLE BIT TO THE FORECAST AND WE WE ARE BUDGETING A SMALL UPTICK IN 2021
ALTHOUGH AGAIN, THERE'S GREAT UNCERTAINTY ON EXACTLY WHAT WE'RE GETTING BUT WE AGAIN BUDGETED TO ABOUT 25% OF WHAT WE THOUGHT WE WOULD NORMALLY BE
NEXT SLIDE PLEASE
SO HERE I'M GOING TO WALK THROUGH THE BUSINESS LINES FAIRLY QUICKLY
PLEASE FEEL FREE TO STOP IF YOU'VE GOT QUESTIONS AS WE GO
I CAN KIND OF HIT THEM AT A HIGH LEVEL
HERE
AGAIN
YOU SEE CRUISE
LARGE REDUCTION IN REVENUE, BUT YOU DON'T SEE THE COST COME DOWN QUITE AS RAPIDLY AS OTHER BUSINESSES
NEXT SLIDE, PLEASE
RECREATIONAL BOATING, WE'RE HOLDING RATES FLAT HERE
WE'RE SEEING REVENUE DOWN SLIGHTLY AND THIS IS PRIMARILY DUE TO A LOT OF EVENTS
WE'RE NOT FORECASTING ANY EVENTS LIKE THE SEATTLE BOAT SHOW OUT AT THE MARINAS FOR 2021
AND SO THAT GIVES US A SMALL UPTICK IN REVENUE, BUT FOR THE MOST PART IT'S FAIRLY FLAT YEAR OVER A YEAR
KELLY
I JUST WANTED TO ADD THAT WHEN WE RECENTLY BRIEFED THE COMMISSION ON RECREATIONAL BOATING LINE OF BUSINESS THERE WERE SOME QUESTIONS ABOUT THE BELLE HARBOR MARINA BUDGET IN PARTICULAR AND I JUST WANT YOU TO KNOW THAT WE ARE LOOKING MORE DEEPLY INTO THAT
ALL OF THE DIFFERENT REASONS FOR THE WELL THE EXPENSES THAT ARE SIGNIFICANTLY HIGHER THAN REVENUES ARE PRETTY COMPLICATED THERE
IT'S NOT AS SIMPLE AS CHANGING THE GUEST REVENUE VERSUS MONTHLY MOORAGE FORMULA
SO WE ARE LOOKING MORE DEEPLY INTO THAT
I JUST WANT YOU TO KNOW THAT WE ARE WORKING ON THAT BUT WITH BUDGET GOING ON WE DID NOT CONSIDER IT AN EMERGENCY
THANKS KELLY
NEXT SLIDE PLEASE
OH, AND ONE THING I FAILED TO NOTE EARLIER TO YOU GUYS IS THAT WE DID SEND YOU OUT SOME MORE BUDGET DETAIL IN ADVANCE
AND IF YOU WANT TO DIVE DEEPER, THERE IS A LINK TO ALL OF THE FURTHER DETAIL THAT THE FINANCING BUDGET GROUP HAS SHARED WITH THE COMMISSION STAFF
SO FOR ELLIOT BAY FISHING AND COMMERCIAL OPERATIONS
WHAT YOU'LL SEE FROM 2020 APPROVED TO 2020 REVISED IS WE LOST SOME REVENUE FROM EVENT STAG
BUT WE ARE ABLE TO MAKE THAT UP WITH THE CLOSURE OF THE BALLARD LOCKS REALLY PUSHING SOME ADDITIONAL MOORAGE OUT TO THE FACILITY, BUT WE'RE NOT ANTICIPATING THAT IN THE 2021 BUDGET
NEXT NEXT SLIDE, PLEASE
AND FIRST SHIP CANAL
NOW, THIS IS MOSTLY FISHERMAN'S TERMINAL, SALMON BAY MARINA, AND MARITIME INDUSTRIAL CENTER MAKE UP THIS GROUP HERE
WE'RE EXPECTING REVENUE TO BE FAIRLY FLAT YEAR-ON-YEAR
WE ARE HOLDING RATES PLANNING TO HOLD RATE STEADY AS WELL HERE
NEXT SLIDE, PLEASE
OKAY AND MARITIME PORTFOLIO MANAGEMENT,.THIS IS ABOUT HALF OF THE REAL ESTATE PORTFOLIO
THE KEY AREAS HERE ARE MOSTLY FISHERMAN'S TERMINAL, SHILSHOLE SHOW BAY MARINA, A PORTION OF T91 UPLANDS
AND THE REVENUE HERE IS WE'RE PLANNING TO BE FLAT
WE LITTLE BIT OF REVENUE WITH REGARDS TO UTILITY REVENUE HERE, BUT IT'S MADE UP WITH SLIGHT INCREASE IN RATES FOR SOME OF OUR TENANTS
NEXT SLIDE, PLEASE
CAN YOU PLEASE REFER ME TO WHAT SLIDE NUMBER WE'RE ON? WE'RE ON 17 RIGHT NOW
THANK YOU
YEAH, IF YOU COULD JUST REFER TO THAT AS YOU'RE GOING ALONG
I UNDERSTAND
WE'VE GOT THE WIND OUT HERE SO I WAS REALLY CONCERNED ABOUT POWER OUTAGES
SO YEAH SLIDE 17, GRAIN TERMINAL
HERE REVENUES UP ABOUT 40% IT'S TRENDING BACK TOWARDS HISTORIC TRENDS AT THIS POINT
THIS IS THE ONE BRIGHT SPOT FOR OUR 2020-2021 BUDGET FROM A REVENUE STANDPOINT
AND NEXT SLIDE, SLIDE 18, PLEASE
OKAY
NEXT WE WILL TALK ABOUT SERVICE GROUPS
THE TWO BIG ONES THAT WE'LL BE DISCUSSING ARE MARITIME MAINTENANCE AND MARITIME ENVIRONMENT AND SUSTAINABILITY
NEXT SLIDE
SO WE ARE ON SLIDE 19
AND AS YOU CAN SEE HERE MARINE MAINTENANCE SERVICES THE WHOLE PORT INCLUDING BOTH MARITIME AND ECONOMIC DEVELOPMENT DIVISIONS, NORTHWEST SEA PORT ALLIANCE, THE STORM WATER UTILITY, AND SOME JOINT VENTURE ITEMS AS WELL
THE REVENUE IS DOWN ABOUT 1.7 MILLION OR SEVEN PERCENT FROM THE 2020 APPROVED BUDGET
BECAUSE WE ARE HOLDING WE ARE NOT REDUCING THE LABOR FORCE HERE, MOST OF THE REDUCTIONS YOU'LL SEE ARE IN OUTSIDE SERVICES, EQUIPMENT, AND SOME TRAVEL, AND OTHER EMPLOYMENT EXPENSES
OKAY NEXT SLIDE, PLEASE
COULD YOU REFER TO THE SLIDE NUMBER PLEASE? OH, YEAH
SLIDE 20 MARITIME ENVIRONMENT AND SUSTAINABILITY
HERE YOU CAN SEE THE OVERALL THE BUDGET'S DOWN ABOUT 14% FROM 2020
WE DECREASED ABOUT 3% IN PAYROLL COST
WE BASICALLY DEFERRED A COUPLE OF EMPLOYEES, BUT WE ADDED ONE IN MID-YEAR
MOST OF THIS REDUCTION IS AND NON-STAFF COST
THE NEXT TWO SLIDES SLIDES 21 AND 22 WE WILL BE DISCUSSING HERE ARE SOME OF THE AREAS THAT WE PLAN TO CONTINUE ON MARITIME ENVIRONMENT AND SUSTAINABILITY
ON SLIDE 21 AND ON SLIDE 22 WE'RE GOING TO DISCUSS SOME OF THE PROGRAMS THAT WE'RE GOING TO DEFER GIVEN OUR FINANCIAL SITUATION
WE ARE CONTINUING HABITAT WORK AT 117 MITIGATION BANK, SMITH'S COVE, SITE MAINTENANCE AND RESTORATION
WE'RE PLANNING TO IMPLEMENT THE NORTHWEST PORT'S CLEAN AIR STRATEGY AND THE PORT GREENHOUSE GAS REDUCTIONS AND DEVELOP WATERFRONT ENERGY PLAN
GOING TO CONTINUE TO SUPPORT THE PLANNING AND THE CAPITAL GROUP
CONTINUED DANGEROUS WASTE COMPLIANCE AND SPILL RESPONSE
AND ALSO, MEDIATION FOR LOWER DUWAMISH EAST WATERWAY AND T91 AND OTHER SITES
THE NEXT SLIDE, SLIDE 22, PLEASE THESE ARE SOME OF THE PROGRAMS WE'RE EITHER GOING TO REDUCE OR DEFER
I WOULD SAY WE'RE DEFERRING TWO POSITIONS, THE SUSTAINABILITY COORDINATOR AND THE CROSS-DISCIPLINARY ORCA HABITAT AND CRUISE PROJECT MANAGER
WE'RE REDUCING THE NUMBER OF WASTE AUDITS, SCALING BACK OUTSIDE SERVICES FOR HABITAT RESTORATION AND DELAY DESIGN WORK TO 2022
SO WE'RE BASICALLY PUSHING THAT BACK A LITTLE BIT
WE'RE DELAYING SOME ENERGY INITIATIVES AND WE CUT THE CLIMATE CHANGE RESILIENCY STUDY IN THE LOWER DUWAMISH
ALSO REDUCED TRAVEL, TRAINING, AND SOME OTHER DISCRETIONARY COSTS AS WELL
QUESTIONS? OKAY, NEXT SLIDE 23, PLEASE
AND HERE IS OUR FTE SLIDE HERE
WE'RE BASICALLY STAYING FLAT YEAR ON YEAR FOR FTES AND DEFERRING 11 TOTAL FULL TIME EMPLOYEES
QUESTIONS? AND NEXT SLIDE, PLEASE
[CROSSTALK] ACTUALLY, WE HAD TWO DIFFERENT MARKETING POSITIONS THAT WERE SPLIT THROUGHOUT THE DIVISION FOCUSING ON DIFFERENT BUSINESS UNITS EXCLUSIVELY
SO WE FORMED ONE THREE-PERSON DEPARTMENT THAT SERVES THE ENTIRE DIVISION, SO THEY HAVE THE ABILITY TO YOU KNOW, WHEN IT'S REAL BUSY IN ONE AREA TO MOVE TO ANOTHER
THEY HAVE BROUGHT A REAL FOCUS TO LOOKING FOR WHERE OUR OPPORTUNITIES FOR REVENUE ARE
SO JUST KIND OF AS AN EXAMPLE WORKING WITH OUR REC BOATING DIVISION TO REALLY TRACK WHAT ACTIVITIES LEAD TO INCREASED GUEST MOORAGE WHICH THEN ALLOW US TO INCREASE REVENUES
WORKING WITH BOTH CRUISE AND FISHING DEPARTMENTS THEY'VE BEEN ABLE TO HELP TAILOR MARKETING SPECIFICALLY TO THOSE BUSINESSES BUT TO BRING A KIND OF AN OVERALL MARKETING DISCIPLINE TO THE BUSINESS
ALSO THAT TEAM IS LEADING THE CUSTOMER EXPERIENCE PORTION OF OUR RETURN TO CRUISE EFFORTS
DOES THAT ANSWER YOUR QUESTION COMMISSIONER? YEAH, MAYBE I CAN GET A LITTLE BIT MORE DETAIL IN A BRIEFING COMING UP
THANK YOU
YOU BET
TO BE CLEAR, THERE HAD BEEN DIFFERENT POSITIONS SPRINKLED THROUGHOUT THE DIVISION AND WE BROUGHT IT TOGETHER TO REALLY BRING A MARKETING DISCIPLINE THAT COULD SUPPORT THE WHOLE DIVISION AND THINK A LITTLE BIT MORE HOLISTICALLY
SO WE THESE WERE NOT THREE NEW POSITIONS
RIGHT
I UNDERSTAND THAT
THANKS
COMMISSION PRESIDENT, THIS IS COMMISSIONER FELLEMAN
CAN I ASK A QUESTION? YES, PLEASE
THANK YOU
SO I HAVE A QUESTION ABOUT THE FUNDING FOR THE QUIET SOUND PROGRAM AND THE MARINE EDUCATIONAL PROGRAMMING THAT WE WERE TALKING ABOUT DOING AT THE VARIOUS MARINAS TO INFORM THE PUBLIC ABOUT APPROPRIATE BOATING CONDUCT AROUND THE OUR ENDANGERED WHALE POPULATION
SO I AM GOING TO ASK SANDY TO ASSIST WITH ANSWERING THAT QUESTION
CERTAINLY SIGNAGE AROUND THE MARINAS CAN BE COVERED FROM THE MARINA BUDGET WITH THE EXPERTISE COMING FROM OUR ENVIRONMENTAL TEAM
IN TERMS OF THAT, I'M NOT SURE EXACTLY WHERE WE INCLUDED THE QUIET SOUND FUNDING
SO GOOD AFTERNOON
THIS IS SANDY KILROY, DIRECTOR OF MARITIME AND ENVIRONMENT SUSTAINABILITY
SO YES COMMISSIONER, THIS FALL WE WILL BE FINALIZING SIGNAGE FOR RECREATIONAL BOATERS
AND ACTUALLY THIS WEEK WILL BE AVAILABLE DRAFT OF THAT FOR REVIEW AND THEN WE SHOULD HAVE THOSE SIGNS MADE AND UP PRETTY QUICKLY FOR THIS YEAR
AND THEN WE WILL, YOU KNOW CAN CONTINUE TO POST THOSE AND UPDATE THOSE AS WE NEED AS WELL AS DOING SOME ADDITIONAL EDUCATION VIA BLOGS AND NEWSLETTERS POSTINGS FOR THE RECREATIONAL BOATERS
FOR THE QUIET SOUND WORK FOR NEXT YEAR THERE'S BEEN A PLAN FOR APPROXIMATELY 50,000 DOLLARS IN NEXT YEAR'S BUDGET
AT LEAST 13,000 OF THAT WOULD BE THE PORT OF SEATTLE'S COST SHARING AN ADDITION TO THE TACOMA AND THE SEAPORT ALLIANCE AND THEN THE REMAINING WOULD BE PENDING NEEDS FOR NEXT YEAR
YOU'RE SAYING THE TOTAL IS 50 NOT A HUNDRED THOUSAND
NO
NO, THIS IS JUST THE PORT OF SEATTLE BUDGET
SO THE SEAPORT ALLIANCE DISCUSSED AND PORT OF SEATTLE AND PORT OF TACOMA COMBINED HUNDRED THOUSAND DOLLARS
THAT COMBINED HUNDRED THOUSAND WOULD BE SPLIT BETWEEN THE TACOMA, SEATTLE, AND THE ALLIANCE AND IT SPLIT BASED ON VESSEL CALLS
PORT OF SEATTLE'S PIECE OF THE HUNDRED THOUSAND IS 13,000
OKAY, THAT'S GREAT
THAT'S HOW I UNDERSTOOD IT
AND SO WOULD THIS BE COMING OUT OF MARITIME OR DOES THIS COMES OUT OF ENVIRONMENT? I THINK IT
I MIGHT DEFER TO KELLY ON THAT
BUT I THINK THE ENVIRONMENTAL BUDGET IS THAT'S COME FROM THE MARITIME BUDGET
IT COMES OUT OF THE MARITIME BUDGET AND THEN GETS ALLOCATED APPROPRIATELY FROM THERE
ALRIGHT, WELL, THANK YOU VERY MUCH
OKAY, NEXT SLIDE
SO NEXT WE'VE GOT A COUPLE SLIDES HERE ON THE STORM WATER UTILITY SUMMARY
I'M NOT GOING TO GO INTO TOO MUCH DETAIL HERE AS COMMISSION YOU'LL BE BRIEFED IN TWO WEEKS FROM THE STORMWATER UTILITY GROUP, BUT IF YOU'LL MOVE TO THE NEXT SLIDE, PLEASE
THE KEY TAKEAWAY HERE IS THAT WE ARE EXPECTING A 3% INCREASE IN STORM WATER RATES
THIS HAS BEEN REVIEWED THROUGH THE STEERING COMMITTEE
REMEMBER THAT THE STORMWATER UTILITY IS BUILT ON A COST RECOVERY MODEL
SO IT WILL HAVE A LIMITED IMPACT ON THE OVERALL PORT FUNDING CAPACITY
YOU CAN SEE THAT CAPITAL PLAN FOR FIVE YEARS IS ABOUT 4.4 MILLION DOLLARS
NEXT SLIDE, PLEASE
SO THIS IS SLIDE 26
PARDON
THANK YOU
AND HERE AGAIN THESE ARE THE THREE KEY PROJECTS THAT THEY'RE PLANNING OVER THE NEXT FIVE YEARS
ANY FURTHER QUESTIONS? COMMISSIONER, WE COULD GO THROUGH A ROLL CALL
ARE YOU YOU SUMMARIZING THIS THE PRESENTATION NOW? YEAH, EXACTLY
SO THIS IS THIS IS JUST ABOUT IT FOR THE MARITIME DIVISION AND WE PLAN TO MOVE TO THAT ECONOMIC DEVELOPMENT DIVISION
GREAT, I JUST WANTED TO MAKE SURE THAT YOU WERE THROUGH AND THAT COMMISSIONERS HAD THEIR QUESTIONS ANSWERED IN ORDER
WOULD YOU LIKE ME TO CALL A ROLL CALL? LET'S WRAP THIS UP
LET'S GO THROUGH ROLL CALL
OKAY, SO I'LL TAKE YOU THROUGH QUESTIONS NOW
COMMISSIONER FELLEMAN DID YOU HAVE ANYTHING ELSE AT THIS POINT? I'M GOING TO BE UNDERSTANDING THAT WE ARE CURRENTLY RIGHT NOW IN A BULK CARGO BONANZA AND THAT THIS IS THE HARVEST SEASON AND IN FACT, IT'S NOT EVEN ENOUGH ANCHORAGE'S TO MOOR ALL OF OUR BOKORS COMING TO TOWN
AND SO WHAT I WAS ENCOURAGED HE SAID THERE WAS A BRIGHT LIGHT OF BOTH CARGO UP UNTIL NOW BUT IT SEEMS TO ME THAT WE ARE LOOKING AT EVEN BRIGHTER AT LEAST IN THE NEAR TERM? OUR PROJECTIONS FOR 2021 YOU CAN SEE FROM THE GRAPH WE INCLUDED ARE DEFINITELY UP FROM WHAT THEY HAVE BEEN MORE KIND OF GETTING CLOSER TO HISTORICAL RETURNS
AND THAT IS BASED ON ACTUALLY TALKING WITH CUSTOMERS
GREAT
WELL, FROM WHAT I UNDERSTAND IT WAS WE SHOULD FINISH THE YEAR STRONG AS WELL BASED ON WHAT THE COAST GUARD IS SAYING IS DIFFICULTY IN FINDING A PLACE TO MORE THE VESSELS
SO THANKS FOR THAT
YEAH, I'LL GIVE YOU FURTHER DETAILS IN ABOUT A MONTH WHEN WE GIVE THE Q3 RESULTS AS WELL
THANKS
OKAY, AND THEN I HAVE JUST RECEIVED NOTIFICATION THAT COMMISSIONER CHO LOST INTERNET CONNECTIVITY
SO I AM WONDERING IF HE HAS REJOINED US BACK ON THE PHONE? I DO NOT SEE HIS NUMBER YET ON THE PARTICIPANT LIST
THANK YOU
WE'LL MOVE TO COMMISSIONER CALKINS FOR QUESTIONS OR COMMENTS
I'VE NONE AT THIS TIME
THANK YOU
COMMISSIONER BOWMAN, ANYTHING ELSE? I JUST SAY THANK YOU
THIS IS A REALLY REALLY HIGH LEVEL BUDGET PRESENTATION AND SO I'M SURE THAT I APPRECIATE THE WORK THAT'S GONE INTO IT
WILL DEFINITELY LOOK FORWARD TO ALL OF THE BACKGROUND WORK THAT GIVES A LITTLE BIT MORE DETAIL OF THE LINE ITEMS I KNOW THAT THAT'S BEEN DONE AND I THINK THAT IT'S IMPORTANT
STEPHANIE, I REALLY APPRECIATE THE SWOT ANALYSIS OF THE ENTIRE MARITIME DIVISION
I'D BE INTERESTED IN HEARING FROM YOU, DOESN'T HAVE TO BE NOW SINCE IT'S BEEN A LONG DAY ALREADY, BUT WHAT YOU SEE A SWOT ANALYSIS FOR EACH OF THE DIFFERENT DIVISIONS, YOU KNOW, WE HAVEN'T TALKED AT ALL THIS YEAR ABOUT SALMON BAY FOR EXAMPLE, FISHERMAN'S TERMINAL IN A DIFFERENT, COMMERCIAL
I JUST
DID THAT MAKES SENSE? WE'RE I FEEL LIKE WE'RE BULKING EVERYTHING IN MARITIME INTO A COUPLE OF SLIDES AND IT WOULD REALLY BE HELPFUL TO SEE WHERE YOU SEE EACH OF YOUR DIFFERENT OPERATING DIVISIONS GOING
AGAIN
DOES NOT HAVE TO BE NOW
I KNOW THAT WE'VE ALREADY BEEN AT THIS FOR FIVE HOURS TODAY, BUT YOU JUST HAVE SUCH GREAT EXPERTISE AND EXPERIENCE IN THE MARITIME WORLD
WOULD LOVE TO UNDERSTAND YOUR THOUGHTS AND WHERE YOU SEE THINGS GOING
ABSOLUTELY
HAPPY TO DO SO, THANKS COMMISSIONER
THANK YOU, COMMISSIONER BOWMAN
AND COMMISSIONER STEINBREUCK
I WANTED TO ASK IF THERE HAVE BEEN SERVICE ALLOCATION CUTS THROUGH THE ALLIANCE TO ANY OF OUR STAFF POSITIONS
I DON'T KNOW IF THAT GOT LOST IN THE HIGH-LEVEL FOCUS HERE, BUT I'D LIKE TO KNOW IF WE'RE SEEING REDUCTIONS TO MARITIME
REDUCTIONS REQUESTED BY THE ALLIANCE AND OUR SERVICE AGREEMENT? YEAH
YES
YES SIR
WE ARE
I THINK IT'S SOME POINT IT WOULD BE GOOD FOR US TO BE AWARE
I'VE ASKED THE SAME OF THE ALLIANCE EVEN THOUGH THIS IS A DELEGATED AUTHORITY TO THE ALLIANCE'S DIRECTOR CEO TO MAKE THESE CHOICES, I UNDERSTAND THAT THERE'S UPWARDS OF A MILLION DOLLARS IN SERVICE CUTS THAT HAVE BEEN MADE ACROSS LINES AND I THINK THAT WE NEED AWARENESS OF THAT
AND WHAT IMPLICATIONS THAT HAS TO PORT OF SEATTLE AS WELL
VERY GOOD, AND THEN COMMISSIONER STEINBREUCK
I HAVE RECEIVED NOTIFICATION THAT COMMISSIONER CHO HAS REJOINED US
COMMISSIONER CHO, HAPPY TO HAVE BACK
DO YOU HAVE ANY QUESTIONS OR COMMENTS AT THIS POINT? SORRY FOR THAT GUYS
I KIND OF LOST IT AND IT FOR A FEW MINUTES THERE
NO, I DON'T
THANK YOU FOR THE PRESENTATION
I'LL FOLLOW UP WITH QUESTIONS BECAUSE I MISSED PART OF IT
BUT THANK YOU
YEAH, AND IN REGARDS THAT COMMISSIONER BOWMAN, QUESTIONS ABOUT THE DETAIL
WE DO HAVE LIKE SAID WE DID SEND OUT SOMETHING THAT'S A LITTLE MORE OF A MID-LEVEL DETAIL AND WE DO EVEN HAVE DEEPER DETAIL, BUT OFTENTIMES IT'S A LITTLE BETTER GETTING SPECIFIC QUESTIONS FROM YOU AS WELL BECAUSE EACH DIVISION'S GOT A TON OF LINE ITEMS IN IT AND IT'S ALWAYS TRICKY TRYING TO PUT IT TO PICK AND CHOOSE EXACTLY WHAT WE PUT IN FRONT OF YOU, BUT HOPEFULLY WE WERE ABLE TO GIVE A STRONG SENSE OF WHAT WE'RE DOING HERE
THANKS
AND AS I TURN IT OVER TO DAVE, I JUST WANTED TO TAKE AN OPPORTUNITY TO THANK KELLY AND HIS TEAM
THIS HAS BEEN A REALLY UNUSUAL BUDGETING YEAR AND NOT MENTIONED IS THAT WE STARTED A NEW BUDGETING SOFTWARE THIS YEAR
SO THE FINANCE TEAM HAS REALLY DONE A FABULOUS JOB WORKING THROUGH ALL THE CUTS AND DOING IT WITH THE NEW SYSTEM AND DOING IT REMOTELY
SO KUDOS KELLY TO YOUR TEAM
THANK YOU
THANKS
ALL RIGHT
WELL, I THINK WE'LL MOVE NEXT COUPLE OF SLIDES
WE HAVE IN THE APPENDIX
I KNOW COMMISSIONER BOWMAN YOU DO LIKE TO SEe PRIOR YEAR'S BUDGET
SO I DID PUT THAT IN THE APPENDIX AS WELL FOR YOU RIGHT HERE
AND FROM THERE WE CAN MOVE TO THE ECONOMIC DEVELOPMENT DIVISION, PLEASE
YES, DO YOU KNOW WHICH SLIDE NUMBER THAT IS? THAT IS NUMBER RIGHT THERE
29
YES
THANK YOU
GOOD AFTERNOON COMMISSIONERS, EXECUTIVE DIRECTOR METRUCK
JUST START RIGHT OFF THE TOP
NEXT SLIDE, PLEASE
JUST TALKING ABOUT HOW IN OUR BUDGETING AND PLANNING WE LIKE EVERYONE ELSE ALIGNED WITH THE CENTURY AGENDA
AND I WANT TO COMPLIMENT YOU AND ALSO MARIN BURNETT
I REALLY LIKE THE UPDATE TO THE CENTURY AGENDA
IT'S MORE REALISTIC
IT'S CONTEMPORARY
YOU'VE ADDED GOALS THAT I THINK ARE REALLY IMPORTANT LIKE BECOMING A MODEL FOR EQUITY DIVERSITY AND INCLUSION
AND IT'S MORE ACTIONABLE
IT'S EASIER FOR US DOWN IN THE TRENCHES TO TAKE THOSE VISIONS AND CONVERT THEM INTO ACTIONS
AND SO YOU'LL SEE HOW MY DEPARTMENTS ARE ALIGNING WITH THE GOALS
WE ARE ESTABLISHING METRICS THAT IS A BIT OF A WORK IN PROGRESS
PRETTY WELL DEFINED IN TERMS OF DIVERSITY IN CONTRACTING BUT STILL TAKING A LOOK AT HOW WE TRACK THE IMPACTS IN TERMS OF ASSISTING SMALL BUSINESS WHAT WE DO IN TERMS OF DEVELOPING REAL ESTATE AND THE POSITIVE BENEFITS WE GET THERE
SO WE'LL LOOK TO UPDATE THESE AND REFRESH THESE AND I REALLY LIKE THE IDEA OF PUTTING THEM INTO A DASHBOARD
SO NEXT SLIDE, PLEASE
AND WE ALSO DID A SWOR
WE DID IT DEPARTMENT BY DEPARTMENT
THIS REPRESENTS A MASH-UP OF THAT AND I'LL JUST START WITH THE STRENGTHS
BELIEVE THAT THE PORT IS A PATIENT STEWARD OF PROPERTIES
WE AREN'T AS CONCERNED ABOUT MORTGAGES TO PAY, INVESTORS TO PLEASE AND TO ME, PATIENCE MEANS WE CAN BE STRATEGIC
WE HAVE A BEAUTIFUL RAMP THROUGH THE CONFERENCE CENTER
WE'RE MAKING PROGRESS ON OUR DIVERSITY IN CONTRACTING AND ARE WIMBE UTILIZATION ACROSS THE PORT AND I WANT TO THANK YOU BECAUSE WE'RE REALLY MAKING A STRONG INVESTMENT IN RECOVERY OF OUR TOURISM AND TRAVEL INDUSTRIES
ON THE OTHER SIDE THOUGH WE DO HAVE SOME WEAKNESSES
I LOOKED AT THE FIRST ONE THE PORT PROPERTIES ARE ALWAYS ENCUMBERED
I DON'T ACTUALLY THINK WE FOUND ONE THAT IS UNENCUMBERED
SO WE ALWAYS HAVE TO DEAL WITH THE CHALLENGES AND LIMITATIONS, BUT WE HAVE A LOT OF PROPERTY TO WORK WITH AND SO THE GLASSES DEFINITELY HALF FULL
I'D ALSO AGREE WITH STEPHANIE THAT THE UNCERTAIN CAPITAL CAPACITY PUTS US IN A A DIFFICULT POSITION MAYBE NOT AS FLEXIBLE AS WE'D LIKE
AND THAT LEADS TO THE BULLET ABOVE ESPECIALLY CONCERNING WHEN WE HAVE DIMINISHED CAPITAL CAPACITY ABOUT DEFERRING MAINTENANCE
AND FINALLY THE HIRING FREEZE
YES, THAT DOES IMPACT US
IT IMPACTS FOLKS IN OUR DIVISION THAT ARE TRYING TO PROVIDE CUSTOMER SERVICE AND MANAGE OUR PROPERTIES
SO ON THE OPPORTUNITY SIDE OUT THERE OUTSIDE, THERE'S A CONTINUED STRONG DEMAND FOR INDUSTRIAL PROPERTY
THERE ARE MAYBE A LOT OF REAL ESTATE MARKET DISRUPTION BUT AMIDST THAT INDUSTRIAL PROPERTY IS LEADING AND SHOWN REALLY STRONG INDICATORS
WE ALSO THINK THAT ESPECIALLY DURING AN ECONOMIC DOWNTURN ACQUIRING PROPERTY OR PURSUING PROPERTY DEVELOPMENT PARTNERSHIPS MAKES A LOT OF SENSE
IT'S THE RIGHT TIME TO DO THAT
A HUGE OPPORTUNITY TO CONTINUE WORKING TO ELIMINATE DISPARITIES IN OUR PORT CONTRACTING AND SUPPLY SYSTEM
AND THEN FINALLY, WE'RE A BELIEVER THAT OUR GRANT PROGRAMS CAN DEMONSTRATE THE PORT'S LEADERSHIP ON COVID RECOVERY AND ECONOMIC DEVELOPMENT
NOT JUST WITHIN THE REGION BUT ACROSS THE STATE OF WASHINGTON
THE THINGS THAT WE'RE CONCERNED ABOUT, TENANT SECURITY AND RESTRUCTURING
WE'RE JUST ENTERING THE FIRST PHASE OF REPAYMENT FOR THE TENANTS WE PROVIDED DEFERRALS EARLIER THIS YEAR
SO FAR, IT'S PRETTY QUIET, BUT THAT'S SOMETHING WE HAVE GOT TO KEEP AN EYE ON
WE'RE NOT OUT OF THIS ECONOMIC SITUATION YET
THAT IS PROBABLY THE THING AT THE TOP OF MIND FOR ALL OF US IN THE DIVISION
WE ALSO YOU KNOW, WE'VE GOT TO BE COMPETITIVE WITH BELLE HARBOR
THERE IS INCREASED COMPETITION
THAT WHOLE EVENT SPACE HAS ALSO BEEN DISRUPTED SO WE HAVE TO MONITOR HOW THOSE EVENTS AND ACTIVITIES COME BACK
I'VE ALREADY MENTIONED REAL ESTATE MARKET DISRUPTION
AND FINALLY, WE DO KNOW THAT OUR ETHNIC FIRMS, OUR WOMEN MINORITY BUSINESSES HAVE BEEN IMPACTED BY COVID AND THERE'S STRONG EVIDENCE THAT THEY'RE DISPROPORTIONATELY IMPACTED
SO THOSE ARE DEFINITELY THINGS THAT WE'RE CONCERNED ABOUT
NEXT SLIDE, PLEASE
AND I'M GOING TO TURN IT BACK TO KELLY NOW WHO'S GOING TO RUN THROUGH THE NUMBERS AND GIVE YOU THE ROLL UP FOR OUR DIVISION BUDGET
THANKS, DAVE
AS YOU CAN SEE FROM THIS SLIDE, WHICH COMMISSION BOWMAN, SLIDE 32, EXPENSE REDUCTIONS OF EIGHT MILLION DOLLARS OUTPACED REVENUE REDUCTION OF FIVE POINT EIGHT MILLION DOLLARS RESULTING IN A HIGHER OPERATING INCOME VERSUS THE 2020 BUDGET
THE KEY DRIVER IS THE LOWER REVENUES THAT CONFERENCE AND EVENT CENTERS CARRY A HIGH VARIABLE COST SAVINGS COMPONENT
WE HAVE TARGETED FUNDING TO HELP RESTART REGIONAL TOURISM AND MOVE FORWARD MARITIME INNOVATION
OUR LINE-ITEM EXPENSE DECISIONS WERE DRIVEN BY EXECUTIVE GUIDANCE IN RESPONSE TO THE PANDEMIC
NEXT SLIDE PLEASE
OKAY, THIS SLIDE WILL GO THROUGH THE REVENUES FOR THE ECONOMIC DEVELOPMENT DIVISION
OVERALL AGAIN, 5.8 MILLION OR 30 PERCENT DOWN COMPARED TO 2020 APPROVED BUDGET
BELLE STREET GARAGE IS DOWN 600 OR FORECASTING TO BE DOWN $695,000 DUE TO FEWER CRUISE AND CLIPPER PASSENGERS AND LESS DOWNTOWN MERCHANT DEMAND
WE GOT THIS FORECAST FROM REEF PARKING, OUR OPERATOR THERE
AND THE CONFERENCE AND EVENT CENTER OR DOWN ABOUT 5 MILLION OR 50 PERCENT THROUGH THE FEEDBACK WE GOT FROM COLUMBIA HOSPITALITY
AGAIN, AND THEN OUR LEASING REVENUE IS FAIRLY FLAT
DOWN ABOUT A HUNDRED SIXTEEN THOUSAND WITH THE LOSS OF DHS AT T-102 AND TESLA IN T-91 OFFSET BY PIER 2
PARDON ME FOR INTERRUPTING
I BELIEVE WE HAVE A QUESTION FROM COMMISSIONER BOWMAN
GREAT
THANKS KELLY
COULD YOU PROVIDE A LITTLE BIT MORE DETAIL ON THE BELLE HARBOR CONFERENCE CENTER IN PARTICULAR? DID COLUMBIA HOSPITALITY GIVE THE FORECAST FOR 2021
IS THIS NUMBER BASED ON WHAT THEY'RE ANTICIPATING? I JUST I'M A LITTLE SURPRISED
IT SEEMS QUITE HIGH, CANDIDLY
IT IS BASED PURELY ON THE FEEDBACK THAT WE GOT FROM COLUMBIA HOSPITALITY
YES
AND ARE THEY
DO YOU KNOW IF THESE ARE FIRM BOOKINGS FOR CONFERENCES OR? WELL, I DON'T THINK ANYTHING'S FIRM AT THIS POINT
BUT THIS IS WHAT THEY'RE FORECASTING BOOKINGS
THEY'RE EXPECTING IT TO UPTICK
DAVE MIGHT BE ABLE TO ADD A LITTLE MORE
I ACTUALLY HAVE
I BELIEVE MELINDA MILLER'S ON THE CALL
WE COULD EITHER DEFER TO HER OR WE COULD FOLLOW UP AND ANSWER THIS
NO YOU CAN FOLLOW UP
THAT'S FINE
OKAY, THANK YOU
YEAH, I JUST YOU KNOW, DAVE, SEING THE NUMBERS FROM THE VISIT SEATTLE AND SEEING WEEKLY THE NUMBER OF CONFERENCES CANCELLED AT THE CONVENTION CENTER JUST GIVES ME PAUSE
I'D HATE TO BE PESSIMISTIC BUT I'M MORE CONSERVATIVE IN MY OUTLOOK FOR CONFERENCES FOR NEXT YEAR
WILL FOLLOW UP WITH YOU ON THAT QUESTION
COMMISSIONER BOWMAN, AGAIN WITH THE CONFERENCE AND EVENT CENTERS IT IS A LITTLE LOWER MARGIN BUSINESS
SO FROM A CASH FORECASTING POINT AT THAT DOES COME DOWN A LITTLE
WON'T HAVE QUITE A SEVERE IMPACT AS SOME OF THE OTHER GROUPS ON OUR BOTTOM LINE
AND THEN JUST TO NOTE THAT WE'LL HOLD FURTHER QUESTIONS UNTIL COMMISSIONER STEINBREUCK REQUESTS THAT ROLE
OKAY, NEXT SLIDE
AND HERE YOU CAN SEE EXPENSES ARE DOWN ABOUT 30% FROM OR ABOUT PARDON ME 27% FROM THE 2020 APPROVED BUDGET
THE MOST OF THAT COMES FROM THE EDD AND MARITIME EXPENSES AND YOU CAN SEE THAT THE BIGGEST REDUCTION IS THAT FOUR MILLION DOLLARS IN CONFERENCE AND EVENTS IN OUR VARIABLE COST
ALSO REDUCTION PRETTY MUCH REDUCTIONS ACROSS THE BOARD
THE ONE GROUP ON THIS SIDE YOU SEE THAT WE DID INCREASE WAS TOURISM AND THAT WAS THE WASHINGTON TOURISM ALLIANCE
YEAH, PARDON ME
AND OVERALL AGAIN WE INCREASED FTES ABOUT WE INCREASED FTES BY JUST A POINT FOUR FTE WHICH WE ELIMINATED A REAL ESTATE ANALYST AND ADDED AN FTE FOR MARITIME INNOVATION
NEXT SLIDE PLEASE
WE'RE ON SLIDE 35 HERE
AS YOU CAN SEE WE'RE ACTUALLY ABOVE NET OPERATING INCOME
2.3 MILLION ABOVE THE 2020 APPROVED BUDGET
THE EXPENSE REDUCTIONS, YOU KNOW FAR OUTWEIGHED SOME OF THE REVENUE REDUCTIONS IN HERE
CASH FLOW FOR 2020 AND 2021 IS FAIRLY FLAT
SO THIS GROUP REALLY NOT HAVING A NEITHER A POSITIVE NOR NEGATIVE REALLY IMPACT ON THE CASH FLOW OVER THE 2020 AND 2021 YEARS
WE HAVE A LIST OF THE LEVY ITEMS WE'RE GOING TO GO FORWARD WITH THE GRANT PROGRAM, THE MARITIME BLUE INNOVATION, AND TOURISM MARKETING, AND THE WASHINGTON TOURISM ALLIANCE
AND HERE'S THE FINANCIAL TREND FOR THE ECONOMIC DEVELOPMENT DIVISION AS A WHOLE
YOU CAN SEE CONFERENCE CENTER BOOKINGS PROGRESSIVELY DECLINED IN 2020
WE DO EXPECT A SMALL UPTICK IN 2021
BUT AGAIN AS WE TALKED EARLIER, IT'S BASED ON FEEDBACK FROM COLUMBIA HOSPITALITY AND COST GONE DOWN QUITE A BIT PRETTY MUCH DOWN TO LEVELS OF ABOUT WHERE WE WERE IN 2015 FOR THE DIVISION
THE NEXT SLIDE PLEASE
AND HERE'S JUST A SUMMARY OF THE PORTFOLIO MANAGEMENT
AGAIN REDUCTION IN THE CONFERENCE AND EVENTS CENTERS AND THE PARKING GARAGE KIND OF DRIVES THE REVENUE IMPACT ON THIS GROUP
CAN SEE SOME OF THE GROUPS INCLUDED ON THIS PORTION OF THE PORTFOLIO
NEXT SLIDE PLEASE
OKAY, AND KELLY CAN GIVE ME A NUMBER THERE? SLIDE 38
OKAY
SO THIS IS JUST A THUMBNAIL SKETCH OF THE DIVERSITY IN CONTRACTING BUDGET
GOALS ON THE LEFT, DOLLARS AND CENTS ON THE RIGHT
SO JUST TALK A LITTLE BIT ABOUT WHAT THIS GROUP IS GOING TO BE DOING NEXT YEAR
AND TOP PRIORITY IS TO HELP OUR DISADVANTAGED BUSINESSES RECOVER FROM THE COVID RELATED CHALLENGES
THAT'S BEEN ONGOING SINCE ABOUT APRIL THAT WON'T STOP
A LOT OF OUR BUSINESSES AS I MENTIONED EARLIER STILL IMPACTED AND THEY'RE NOT OUT OF THE WOODS YET
AND SO AS PART AND PARCEL OF THAT, YOU KNOW, WHAT WE CAN DO IS INCREASE OUR WIMBE CONTRACTING UTILIZATION
WE CAN PROVIDE OPPORTUNITY
AND AS I MENTIONED WE HAD A GOOD FIRST YEAR AND WE NEED TO MAINTAIN THE MOMENTUM WITH THAT EFFORT
AND ONE OF THE THINGS YOU DID EARLIER THIS YEAR AS PART OF OUR ECONOMIC RECOVERY INITIATIVES IS YOU ALLOWED THE SOUTH COUNTY FUND TO BE USED FOR ECONOMIC DEVELOPMENT AND WE ARE USING SOME OF THAT FUNDING TO PROMOTE ECONOMIC RECOVERY INITIATIVE
SO YOU'LL SEE THIS DIVERSITY IN CONTRACTING BUDGET REFLECT FUNDING FOR ADVANCE PORT TRAINING, PARTNERSHIP WITH THE HIGHLINE SDDC AND A NEW WIMBE ACCELERATOR PROGRAM
AND SO THIS IS THIS IS OBVIOUSLY ONE OF OUR HIGHEST PRIORITY EFFORTS
I REALLY APPRECIATE THE WORK THAT MIAN AND HIS TEAM HAVE DONE
AGAIN
THEY PRODUCE STRONG INITIAL RESULTS
THEY'RE FACILITATING RELIEF AND RECOVERY EFFORTS
AND I THINK THEY'VE ALSO MADE A LOT OF PROGRESS BEHIND THE CURTAIN ON ARE DISADVANTAGED BUSINESS ENTERPRISE PROGRAM AT THE AIRPORT
NEXT SLIDE
IN TERMS OF TOURISM, WE ARE ABOUT READY TO EXECUTE A CONTRACT WITH WASHINGTON TOURISM ALLIANCE
RON HAS BEEN WORKING STEADILY ON THAT SINCE YOU ADVANCED THE FUNDING EARLIER THIS SUMMER
WE'RE ABOUT READY TO GET INTO THE FINAL DETAILS THERE WITH OUR PARTNERS
THAT'S AN INCREDIBLY IMPORTANT INITIATIVE THAT'S IN RON'S HAND AND RON'S TEAM TO ADMINISTER
I'M I'M VERY EXCITED ABOUT WHAT WE'RE LOOKING AT BUT WITH THE CAVEAT
THAT STARTS WHEN IT MAKES SENSE AND A LOT OF WORK THAT RON HAS DONE IS REALLY REPROGRAMMING, BEING PATIENT, MOVING BACK WHEN NECESSARY, MOVING BACK AGAIN, AND WAITING FOR A SEASON WHEN IT'S HEALTHY AND MAKES SENSE TO GET PEOPLE BACK INTO TRAVEL AND TOURISM
SO WORK THOUGH IN TERMS OF WORKING WITH HOSPITALITY AND THAT INDUSTRY TO TURN AROUND
RON IS ALIGNED HIS TOURISM GRANT PROGRAMS TO SUPPORT THAT RECOVERY MOVING EXPENDITURES BACK, YOU KNOW HOLDING THE DRY POWDER SO THAT WE CAN REGENERATE CONSUMER CONFIDENCE IN TRAVEL
IN ADDITION RON'S GOING TO CONTINUE TO PROMOTE CRUISING STAY
WE HOPE THAT THAT CRUISE INDUSTRY REBOUNDS NEXT YEAR
THERE ARE STRONG MARKET INDICATORS AND WITH THOSE INDICATORS WE THINK THERE'S AN OPPORTUNITY TO PROMOTE EXTRA EXCURSIONS AS THEY VISIT THE NORTHWEST
AND WE'RE GOING TO CONTINUE TO PARTNER WITH SOUTHSIDE, VISIT SEATTLE AND OTHERS
THAT'S THE NAME OF THE GAME FOR SUCCESS IN TOURISM
NEXT SLIDE
IN TERMS OF REAL ESTATE DEVELOPMENT MANAGEMENT THERE'S ACTUALLY THREE DIFFERENT DEPARTMENTS ON THIS SLIDE: REAL ESTATE DEVELOPMENT UNDER THE LEADERSHIP OF CAROL LEE, T-69 FACILITIES UNDER THE LEADERSHIP OF NICK MILOS AND THEN PORTFOLIO ASSET MANAGEMENT UNDER THE LEADERSHIP OF MELINDA MILLER
AND REALLY, YOU KNOW, AS I MENTIONED EARLIER THE THING WE'RE KEEPING OUR EYE ON US OUR TENANTS AND OUR PARTNERS
DATA IS DIFFICULTY WE HAVE 50+ COMPANIES ON THE WATERFRONT THAT ARE IN OUR RELIEF PROGRAM
SO FAR SO GOOD
IT'S BEEN PRETTY QUIET
WE HAVEN'T SEEN COMPANIES FURTHER SLIP
BUT LIKE I SAID, IT'S NOT OVER
WE ARE MAKING PROGRESS ON A TERMINAL 106 LEASE
HOPE TO BRING POTENTIAL DEAL TO YOU OVER THE NEXT QUARTER ON THAT ONE
AND THEN WE'RE GOING TO WE'RE GOING TO CONTINUE TO MOVE OUR CAPITAL PROJECTS AND YOU'RE GOING TO HEAR MORE ABOUT THAT IN JUST ABOUT THE NEXT HALF HOUR ABOUT OUR WORK ON T91 UPLANDS LIGHT INDUSTRIAL DEVELOPMENT, THE MARITIME INNOVATION CENTER
BUT KERI IS ALSO WELL INTO A PORT REAL ESTATE STRATEGIC PLAN UPDATE
YOU HAVE A SPECIAL STUDY SESSION HERE IN TWO WEEKS WHERE WE WILL LOOK AT SOME OF THE STRENGTHS AND WEAKNESSES AND OPPORTUNITIES AROUND KEY PROPERTIES LIKE FISHERMAN'S TERMINAL OR T-91
SO WE THINK THAT'S IMPORTANT WORK AND THAT WILL REALLY LEAD TO A CLARITY OF PRIORITIES AND IMPLEMENTATION STEPS IN 2021
AND THEN FINALLY, YEAH, I REALLY HAND IT TO NICK MILOS
WE HAVE BEEN HEAVILY IMPACTED AT PIER 69 FROM INITIALLY JUST REACHING OUT AND MAKING SURE WE WERE SAFE AND HEALTHY TO THEN HAVING EVERYBODY PRETTY MUCH LEAVE THE FACILITY DURING THE STAY AT HOME ORDER
AND THEN NOW SLOWLY REOPENING
AND THAT HAS TAKEN A TREMENDOUS AMOUNT OF WORK ON THE PART OF HIS TEAM AND I JUST THINK WE ARE WELL POSITIONED RIGHT NOW
FOR THAT GRADUAL REOPENING IN A REALLY HEALTHY AND SAFE MANNER
SO NEXT SLIDE, PLEASE
AND THEN FINALLY, I AM VERY PLEASED THAT WE ARE IN THE MIDDLE OF A LOT OF PARTNERSHIPS WITH THE COMMUNITY BOTH IN THE NAME OF ECONOMIC DEVELOPMENT AND INNOVATION
AND ONE OF THE THINGS THAT I THINK WE DID PARTICULARLY WELL IS PIVOT OUR CITY GRANT PROGRAM AND ASK OUR CITIES TO REALLY GO OUT OF THINGS
RECRUITING AND THINGS THAT DON'T MAKE SENSE IN A COVID ENVIRONMENT AND REALLY FOCUS ON THE WELFARE OF SMALL BUSINESSES THEIR KEY INDUSTRIES AND THEIR OWN COMMUNITIES
AND JOE MEYER ON MY TEAM HAS DONE A VERY GOOD JOB OF GETTING THEM TO REFOCUS
WE'VE ALSO BEEN PART OF THE GREATER SEATTLE PARTNERS REGIONAL ECONOMIC RECOVERY PLAN
I MADE AN EARLY INVESTMENT IN THAT PROGRAM TO HELP SUPPORT THAT PARTICULAR EFFORT
NEXT YEAR
WE SEE THE DUWAMISH COMMUNITY EQUITY PARTNERS INITIATIVE REALLY STARTING TO GAIN STRIDE STARTING TO GET INTO BLACK AND WHITE IN TERMS OF SOME ECONOMIC DEVELOPMENT PARTNERSHIPS WE CAN SUPPORT
AND THEN LAST BUT CERTAINLY NOT LEAST SO PLEASED WITH THE MARITIME INNOVATION INITIATIVES WE'VE LAUNCHED
PROUD OF THE FIRST ACCELERATOR COHORT
WE JUST ANNOUNCED THE SECOND ONE THAT WILL START NEXT YEAR
I THINK WE REALLY HIT AN IMPORTANT VALUE ADD HERE
ADVANCING INNOVATION WITHIN AN INDUSTRY THAT HAS A LOT OF POTENTIAL BUT ALSO A LOT OF NEED IN THAT AREA AND SO AS KELLY MENTIONED, YOU KNOW, WE TOOK THIS EXERCISE SERIOUSLY
WE REDUCED EXPENSES BUT WE TRIED TO KEEP A CORE OF FUNDING TO KEEP OUR PRIORITY PORT SERVICES INTACT, BUT ALSO TO KEEP OUR PARTNERSHIPS EXTERNALLY THAT ARE SO IMPORTANT AND LARGELY INTACT AS WELL
DAVE
THANK YOU
LET'S PAUSE HERE AND TAKE ROLL CALL ON COMMISSIONER QUESTIONS AND COMMENTS
THANK YOU
BEGINNING WITH COMMISSIONER FELLEMAN
THANK YOU VERY MUCH
I AM NOT GOING TO PROBABLY BE ABLE TO STAY ON MUCH LONGER
BUT ONE OF THE THINGS THAT I JUST WANTED TO NOTE IN TERMS OF THE THE METRIC FOR TOURISM
KPI MORE OR LESS
REALLY WAS EMPLOYMENT AND I'M SURE OTHER THE THINGS THAT WE GO ALL THE WAY BACK TO A PAGE THAT IS 30
AND YOU KNOW, I STARTED THIS CONVERSATION WITH OUR ATTORNEYS ABOUT, YOU KNOW, THE NEXUS BETWEEN ECONOMIC DEVELOPMENT AND TOURISM
AND THE YOU KNOW TO ME THEY ARE TOURISM IS THIS ONE ASPECT OF ECONOMIC DEVELOPMENT
AND AND IT HAS MANY DIFFERENT SPIN-OFF RAMIFICATIONS TO THE REGIONAL ECONOMY
AND SO WHILE YES ENPLANEMENTS ARE ONE OF THE INDICATORS OF THIS INITIATIVE, I WOULD I WOULD HOPE WE WOULD SHOW YOU KNOW OTHER ASPECTS OF TOURISM AS BEING A COMPONENT OF THE ECONOMIC DEVELOPMENT COMPONENT OF OUR GATEWAY
YES, FRED
WE WILL WORK TO GO BEYOND THAT
AND I THINK AS WE FINALIZE THE CONTRACT WITH WASHINGTON TOURISM ALLIANCE WE'LL START BEING ABLE TO LOOK AT OUTCOMES AND THEN PUT THOSE TO SOME METRICS
I APPRECIATE THAT
AND THE SORRY ABOUT THE BACKGROUND NOISE
THE TOURISM PROMOTION COMPONENT, WHICH IS A LOT OF WHAT THIS PARTICULAR GRANT IS, BUT A LOT OF WHAT I THINK THE TOURISM BUDGET ENTAILS IT WOULD BE GREAT TO GET A LITTLE BIT MORE DETAIL
I KNOW WE DO OVERSEAS WORK AND THINGS LIKE THAT
IT WOULD BE GREAT TO HAVE A LITTLE BIT OF A DEPTH OF DIVE INTO HOW WE PROMOTE TOURISM IN THE STATE AND THE REGION
I KNOW OUR PARTNERSHIPS ARE CRITICAL TO THAT END WITH VISIT SEATTLE AND THE WTA AND JUST WOULD ENJOY A LITTLE BIT OF A DEEPER DIVE ON THAT
JUST ONE OTHER THING IS THAT I MEANT TO RAISE IN THE AVIATION BRIEFING BUT ALSO WITH REGARDS TO THE WIMBE UTILIZATION
THAT IT WAS A REALLY SURPRISINGLY HIGH PERCENTAGE OF NATIVE AMERICAN PARTICIPATION IN THE AIRFIELD
IN THE AIRPORT
SO
I DIDN'T KNOW WHETHER WE HAD ANY TRIBAL PARTICIPATION IN OUR MEETING OUR WIMBE GOALS AT THE SEAPORT
I KNOW WE'RE TRACKING IT
I'M GOING TO HAVE TO TAKE AN IOU ON THAT QUESTION AND LOOK INTO IT A LITTLE MORE FOR YOU, COMMISSIONER FELLEMAN
THANK YOU, AND I JUST LOOK FORWARD TO ALSO HEARING FROM I FORGOT TO ASK THEM THE AVIATION DIVISION
WAS THAT JUST LIKE ONE BIG CONTRACT OR
YOU KNOW BECAUSE IT'S VERY ENCOURAGING
I NORMALLY WE SEE TRIBAL PARTICIPATION AS BEING A VERY SMALL NUMBER AND IT WAS ONE OF THE LARGER 8% ALMOST I THINK OF THE OVERALL CONTRACTING
SO ANYWAYS, THANK YOU VERY MUCH FOR THE WORK YOU DO
GREAT FAN OF THAT EFFORT AND LOOK FORWARD TO HEARING ABOUT THE REAL ESTATE SIDE MORE
THANKS
THANK YOU FOR YOUR COMMENTS COMMISSIONER FELLEMAN
COMMISSIONER CHO? I DON'T HAVE ANY QUESTIONS AT THE MOMENT
THANK YOU VERY MUCH FOR THE GREAT PRESENTATION
WAS VERY INFORMATIVE
COMMISSIONER CALKINS
HI-YAH, IT'S SO A QUESTION FOR DAVE AND YOUR TEAM
OR I GUESS KIND OF A COMMENT
YOU KNOW, I'VE HAD THE OPPORTUNITY TO PARTICIPATE IN A REAL ESTATE STRATEGIC PLAN ADVISORY GROUP
I THINK IT'S CALLED
YEAH THERE WAS A NOTION THERE THAT I THINK KIRA INTRODUCED OF ESSENTIALLY THREE BUCKETS OF REAL ESTATE
THE MISSION FOCUSED PROPERTIES, THE PROPERTIES THAT ARE CASH POSITIVE FOR THE ORGANIZATION, AND THEN THERE'S A THIRD BUCKET THAT SORT OF REPRESENTS THE AREAS THE PROPERTIES THAT DON'T PROVIDE EITHER A MISSION BASIS OR THAT ARE CASH FLOW POSITIVE AND I'M WONDERING HOW ARE WE INCORPORATING A CONVERSATION ABOUT THE UTILITY OF THOSE INTO THE 2021 BUDGET AND WHETHER WE OUGHT TO BE CONSIDERING SOMETHING LIKE SURPLUSING THEM OR FINDING ALTERNATE USES FOR THEM OR SOME OTHER AVENUE OF INCREASING THEIR UTILITY FOR US AND FOR THE PUBLIC
A GREAT QUESTION, RYAN
AND I PROMISE YOU WE'RE GOING TO DIVE INTO THAT IN TWO WEEKS WHEN WE HAVE A STUDY SESSION ON THE REAL ESTATE STRATEGIC PLAN
BECAUSE WE WILL REVIEW PROPERTIES THAT WE AREN'T QUITE SURE FIT OUR MISSION ANYMORE AND IT'S NOT LIKE THIS IS A NEW CONVERSATION
IT'S JUST THE WE WANT TO GO BACK AND HAVE IT AGAIN
TIMES CHANGE COMMISSIONERS CHANGE
STAFF CHANGES
MARKETS CHANGE
AND SO YES, WE ARE LOOKING AT THAT BUT REALLY HOW IT IMPACTS OUR BUDGET I WOULD IMAGINE IT WILL SOME TIME TO LOOK AT THAT, YOU KNOW, AND IF WE DECIDE TO SURPLUS AN ASSET THAT WILL TAKE FURTHER TIME
SO I'M SENSING THE IMPACTS ON OUR BUDGET IN TERMS OF ANY LOSS OF OPERATING REVENUE, ANY GAIN IN PROCEEDS FROM A SALE WILL PROBABLY LIKELY BE IN 2022, BUT WE WILL BE TALKING IN GREAT DETAIL ABOUT THIS ON THE 27TH, INCLUDING SOME SPECIFIC PROPERTIES WHERE WE ARE LITERALLY WE MAKING THAT RECOMMENDATION TO EXPLORE
WHAT SHOULD WE DO? SHOULD WE PUT THESE ON THE BLOCK? SHOULD WE DIVEST OURSELF OR SURPLUS THESE PROPERTIES? THANKS, DAVE
THANK YOU COMMISSIONER CALKINS
MOVE ONTO COMMISSIONER BOWMAN FOR QUESTIONS OR COMMENTS
GREAT
THANK YOU
I'VE GOT A COUPLE
SO DAVE ON ON SLIDE 33 WE HAVE A REDUCTION IN LEASING REVENUE OF A HUNDRED SIXTEEN THOUSAND
I'M JUST CURIOUS AS TO IS THAT FROM THE WORLD TRADE CENTER AND FISHERMAN'S TERMINAL? HOW SOLID YOU FEEL ABOUT THAT NUMBER? I CAN TAKE AN IOU ON THAT, BUT I GUESS I'VE HEARD ABOUT TENANTS PLANNING TO MOVE OUT
SO I THOUGHT IT MIGHT BE A LITTLE BIT HIGHER THAN THAT
COMMISSIONER BOWMAN
I'M GOING TO ANSWER IN PART, BUT I'M ALSO NOT GONNA JUST LEAVE IT OUT OF ORAL
I'M GOING TO GO BACK AND GET MELINDA TO PREPARE A DEEPER RESPONSE
EDD ACTUALLY DOES NOT REALLY RECEIVE ANY REVENUE FROM FISHERMAN'S TERMINAL SO THAT REVENUE WOULD PRIMARILY BE COMING FROM CENTRAL WATERFRONT PROPERTIES AND MAYBE A FEW OTHER PROPERTIES SPRINKLED AROUND DOWN
INTO THE DUWAMISH AND AT T91
AND SO I I SAW OUR METRICS FOR OUR OCCUPANCY AND IN PREVIOUS YEARS WE HAVE SUGGESTED IT'S ABOUT 94 95 PERCENT AND MELINDA MILLER IS IS CONFIDENT THAT WE ARE GOING TO HOLD THAT OCCUPANCY
SO THAT'S MY INITIAL RESPONSE IS THAT DESPITE THE DISRUPTION AND THE LOSS OF A COUPLE TENANTS MANY OTHERS ARE STILL HOLDING THE FORT
BUT I APPRECIATE YOUR QUESTION AND WE WILL DIG IN FURTHER AND GIVE YOU A FULL RESPONSE ON THAT QUESTION
THAT'D BE GREAT
THANKS
YEAH, I GUESS I'M MOST INTERESTED IN THE WORLD TRADE CENTER AND OBVIOUSLY WITH ALL OF THE IMPACTS TO COMMERCIAL OFFICE SPACE DOWNTOWN AND PEOPLE WORKING FROM HOME
I WOULD IMAGINE IT MIGHT BE SLIGHTLY IMPACTED
THE NEXT QUESTION I HAD WAS ON THE CRUISE AND STAY PROGRAM AND IN TERMS OF THE BUDGET NUMBER, IS IT THE SAME AS THE PREVIOUS YEARS OR IS IT REFLECTING THE REDUCTION THAT WE'RE SEEING WE'RE ANTICIPATING IN CRUISE WHICH IS A REDUCTION OF 75%? I'M COULD WE GO BACK A COUPLE SLIDES AND A LITTLE HANDICAPPED HERE
I'VE ALSO GOT RON PECK ON THE LINE AND I'D ACTUALLY LIKE TO DEFER TO HIM BECAUSE THE CRUISE AND STAY ACTUALLY ISN'T ONE LINE ITEM IN THE BUDGET
IT'S BETWEEN OUTSIDE SERVICES, PROMO EXPENSES AND OTHER THINGS
RON COULD YOU HELP ME RESPOND TO COMMISSIONER BOWMAN'S QUESTION? YES AND DAVE WHICH SLIDE DO YOU WANT TO BE ON RIGHT NOW? THIS IS IT
THIS IS PERFECT
AND RON IT'S A QUESTION ABOUT YOU KNOW, WHAT ARE WE DOING? AND WHAT'S THE STATUS OF THE BUDGETS FOR CRUISE AND STAY
COMMISSIONER WE DID MAKE REDUCTIONS OVERALL IN OUR EFFORTS FOR MARKETING INTERNATIONALLY AND DOMESTICALLY
OUR BUDGET MINUS THE 1.5 MILLION TOURISM RECOVERY DROP BY ABOUT TWO HUNDRED AND TWENTY SIX THOUSAND DOLLARS
SO WE'RE MAKING EFFORTS TO MAKE SURE THAT WE'RE LEVERAGING WHAT LIMITED RESOURCES WE HAVE AND I CAN I JUST FEEL INFORMATION BUT WE'VE ESSENTIALLY REDUCED OUR OUR TOURISM MARKETING BUDGET BY ABOUT A QUARTER, $250,000
OKAY, MAYBE WHEN YOU HAVE CHANCE TO PROVIDE ADDITIONAL DETAILS, I UNDERSTAND THAT IT'S PROBABLY SPRINKLED IN A SEVERAL DIFFERENT AREAS
BUT I'M JUST AGAIN BEING COGNIZANT OF THE FACT THAT IF WE'RE ANTICIPATING ONLY 25% RETURN TO CRUISING NEXT YEAR THAT I WOULD ANTICIPATE WE WOULD HAVE A SOMEWHAT SIMILAR CRUISE AND STAY BUDGET
NOT THE SAME ONE THAT WE'VE HAD IN PREVIOUS YEARS UNTIL THAT BUSINESS STARTS TO REBUILD
AND THEN I HAD ANOTHER QUESTION
APOLOGIES
YOU COVERED SO MUCH DAVE
SO I'M SORRY
I'M TRYING
IT'S OKAY
IT'S ON PAGE 41
AND IF YOU COULD JUST
I THINK THERE'S A TYPING ERROR HERE UNDER GENERAL EXPENSES
SO THE 2020 BUDGET WAS 500,000 2021 IS A HUNDRED FIFTY
SO THAT'S A REDUCTION OF 350
I'M CURIOUS AS TO WHAT THAT IS
OKAY
I HAD A CONTINGENCY ACCOUNT PUT IN MY BUDGET YEARS AGO AS I GOTTEN MORE EXPERIENCED IN JUST THE LOOK AND FEEL OF OUR REVENUES AND EXPENSES
I HAVE TAKEN PIECES OF THAT, I PUT IT OVER AND PUT A STANDING LINE ITEM IN FOR MARITIME BLUE
SO THAT REDUCTION ACTUALLY IT REFLECTS A HUNDRED AND FIFTY THOUSAND DOLLAR TRANSFER TO A MARITIME BLUE LINE ITEM WHICH YOU SEE REFLECTED BELOW AND THEN THE REST OF IT IS JUST REDUCTION OVERALL OF ANOTHER HUNDRED THOUSAND THAT I HAD TO TAKE IN ORDER TO JUST TIGHTEN THE BELT
I'M SORRY
I TOOK MORE THAN THAT
I TOOK TWO HUNDRED THOUSAND AS A REDUCTION
AND SOME OF THAT IS REFLECTED FROM A REDUCTION I TOOK I BELIEVE EARLIER THIS SPRING
OKAY, MAYBE YOU CAN JUST DO AN IOU ON THIS ONE
IT'S NOT ADDING UP
YOU SEE THE MARITIME BLUE IS IN THE OUTSIDE SERVICES
THAT'S WHY IT WENT UP
WE REDUCE THE EDD GRANTS BY $50,000 AND ADDED MARITIME BLUE AND THE OUTSIDE SERVICES
THAT'S WHERE THE HUNDRED THOUSAND DOLLAR INCREASED COMES FROM
THAT'S FINE
I WAS ASKING ABOUT GENERAL EXPENSES
SO NUMBER ONE IT SAYS 500,000 FOR THE 2020 BUDGET
HUNDRED FIFTY THOUSAND FOR 2021
SO THAT'S NUMBER ONE
THAT'S 350
SO YEAH, BUT I'M
JUST IT WOULD BE HELPFUL TO HAVE MORE DETAIL ABOUT WHAT THESE DIFFERENT CATEGORIES ARE SO WE COULD JUST HAVE A LITTLE MORE TRANSPARENCY ABOUT WHAT EACH OF THESE ARE COMPRISED OF
THANK YOU
NO PROBLEMS THANK YOU
COMMISSIONER STEINBREUCK FOR YOUR QUESTIONS OR COMMENTS
I WANT TO KNOW HOW MUCH MORE TIME YOU NEED DAVE TO COMPLETE THE THIS PRESENTATION
I NEED TWO MORE MINUTES
ABOUT ONE MINUTE
I'M DONE
BASICALLY
WHAT MORE DO WE HAVE ON THIS? JUST HAVE MY EXPLANATION
I'M REPROGRAMMING AN FTE, YOU KNOW REPROGRAMMED PARTIAL FT AND ASKING FOR NOT MUCH MORE SO I CAN HIRE A STAFF PERSON TO SUPPORT INNOVATION EFFORTS
OKAY
ALRIGHT, THAT'S THE NEXT SLIDE, PLEASE
SO WE'VE BEEN PRETTY FLAT ON FTE FOR THE LAST COUPLE OF YEARS AND WE WE HAVE ENOUGH CAPACITY IN REAL ESTATE
I NEED MORE BACK BEHIND ME IN TERMS OF SUPPORTING OUR GROWING INITIATIVES IN INNOVATION AND ALSO SOME OF OUR RECOVERY INITIATIVES
AND THAT'S I THINK NEXT SLIDE
I THINK WE'RE
COMMISSIONER THAT'S THE END OF THE OPERATIONS BRIEF, BUT WE DO HAVE MORE TO TALK ABOUT WITH THE CAPITAL
I THOUGHT SO
WE'RE UNDER SOME TIME CONSTRAINTS HERE WITH TWO MORE ITEMS ON THE AGENDA AND A EXECUTIVE SESSION THAT WAS SCHEDULED FOR 3:45
I DON'T THINK WE'RE GOING TO MAKE THAT
SO JUST WANTED TO CALL THAT TO YOUR ATTENTION
LET'S CONTINUE
COMMISSIONER, WE'LL KEEP MOVING ON HERE
I'VE JUST GOT A COUPLE SLIDES HERE
SLIDE, PLEASE
SLIDE 45 WHICH WE'LL TALK ABOUT AHEAD ON THE SCHEDULE
THE CAPITAL PLANNING PROCESS CHANGES, WE'LL LOOK AT BUDGET FOR 2021 PRIORITIES AND TALK ABOUT THOSE PROJECTS THEMSELVES, AND WE'LL TALK ABOUT OUR FINANCIAL CAPACITY AND THE REVISED CAPACITY TO DO THAT AND THEN NEXT STEPS
SLIDE, PLEASE
JUST SHOWS WHERE WE ARE IN THE BUDGET TIMELINE
SLIDE
I'M GOING TO MOVE THROUGH THESE AND GET TO THE MEAT OF THE THE PRESENTATION
THESE ARE THE CAPITAL PLANNING GUIDELINES THAT YOU'VE SEEN BEFORE
NEXT SLIDE, PLEASE
NOW ON SLIDE 48 WHICH SHOWS WHEN WE LOOK AT OUR CAPITAL IMPROVEMENT PLAN PRIORITIES WE'RE LOOKING AT ASSET STEWARDSHIP, FINANCIAL SUSTAINABILITY, AND COMMUNITY ENVIRONMENT
AND THOSE ARE THE CRITERIA THAT WE'RE MEASURING AS WE PRIORITIZE AND RACK AND STACK OUR PRIORITIES WITHIN THE CIP
NEXT SLIDE, PLEASE
I'M GOING TO TURN OVER TO DAN THOMAS TO TALK ABOUT OUR CABLE CAPACITY AND SOME ASSUMPTIONS FORWORD
THANK YOU STEVE
SO JUST TO KIND OF HIGHLIGHT SOME OF THE KEY ASSUMPTIONS THAT ARE INFORMING OUR FIVE-YEAR FUNDING CAPACITY FOR THE CIP
I'LL BE FAIRLY BRIEF
YOU'VE HEARD MUCH OF THIS BUT AS YOU KNOW, AS WE'VE TALKED ABOUT ALL DAY, WE'RE TAKING A VERY CONSERVATIVE APPROACH TO OUR PLANS
AS OUR MANTRA HAS BECOME ITS THE RISK OF OVER OPTIMISM IS GREATER THAN THE RISK OF PESSIMISM
SO WE WANT TO BE VERY CAUTIOUS
ONE OF THE KEY ASSUMPTIONS ON THE LEVY AND I'LL TALK A LITTLE BIT MORE ABOUT THIS IS THAT WE ARE RECOMMENDING CONTINUING THE CURRENT PLAN OF 3% INCREASE NEXT YEAR
AS YOU KNOW, WE STARTED THAT IN 2019 AND THEN THAT WOULD CONTINUE ON THROUGH 2023 TO FUND THE PROGRAM
YOU'VE HEARD MUCH OF THE ASSUMPTIONS ABOUT REVENUES
AGAIN CRUISE ACTIVITY EXPECTED TO BE ABOUT 25% OF WHAT WE ORIGINALLY HAD FORECAST
AND THEN RIGHT NOW WE'RE ONLY FORECASTING A PARTIAL RECOVERY IN 2022
SO NOT QUITE BACK UP TO FULL CAPACITY, BUT ABOUT 75%
WE'RE HOPING WE DO BETTER BUT AGAIN TO BE CONSERVATIVE WE'RE FORECASTING THAT LEVEL
AND THEN YOU HEARD THE ASSUMPTIONS ABOUT OPERATING EXPENSES, WHICH ARE DOWN
WE DO EXPECT THEM TO RISE MODERATELY OVER THE NEXT FEW YEARS
YOU HEARD THE ASSUMPTIONS ABOUT CONFERENCE CENTERS REVENUES AND PARKING
FORTUNATELY BECAUSE OF THE CARES GRANT NO LONGER HAVE ANY CONCERNS ABOUT HAVING TO PROVIDE ANY SUPPORT FOR THE AIRPORT FROM THE TAX LEVY
THEY SEEM TO BE DOING BETTER NOW WITH THAT CASH INFUSION
AND THEN WE'RE ALSO OBVIOUSLY INCORPORATING THE NORTHWEST SEA PORT ALLIANCE CIP OF 344 MILLION OF WHICH OUR SHARE WOULD BE HALF OF THAT A HUNDRED AND SEVENTY TWO MILLION DOLLARS
I WOULD NOTE THAT THAT IS STILL A LITTLE BIT IN FLUX AS THE NORTHWEST SEAPORT ALLIANCE REFINES THEIR BUDGET BOTH OPERATING AND CAPITAL
SO WE WILL CONTINUE TO REFINE OUR NUMBERS AS WE GET BETTER INFORMATION
NEXT SLIDE TO SLIDE 50
SO JUST LOOKING AT THE JOURNEY THROUGHOUT THE COURSE OF THE YEAR
EARLIER IN THE YEAR BACK IN JUNE WE HAD A RETREAT WHERE WE STARTED OUTLINING A NUMBER OF FINANCIAL SCENARIOS OF VARYING SEVERITY GIVEN THE SIGNIFICANT RISKS WE WERE FACING
AT THAT TIME OF THE MARITIME AND EDD CAPITAL IMPROVEMENT PLAN STOOD AT ABOUT FIVE HUNDRED AND THIRTY-ONE MILLION DOLLARS
THAT WAS WHAT HAD BEEN BUDGETED BACK IN THE FALL, BUT SINCE THEN WE'VE AND CONTINUING TO REFINE OUR NUMBERS
BACK IN AUGUST WE PROVIDED AN UPDATE WHERE OUR FUNDING CAPACITY HAD DECREASED TO ABOUT 387 MILLION DOLLARS AND THEN BASED ON CONTINUED ANALYSIS AND REFINEMENT OF OUR NUMBERS WE'RE NOW SHOWING FUNDING CAPACITY FOR MARITIME AND EDD CIP OF ABOUT THREE HUNDRED AND TWELVE MILLION DOLLARS
AND THE REASONS REALLY FOR THAT DECREASE IS THE REDUCTIONS IN REVENUES AND THAT IS AFFECTED US IN TWO WAYS
ONE IS WE'VE CONTINUED TO BURN DOWN OUR SURPLUS CASH RESERVES AND EXPECT THAT WE WILL CONTINUE TO DO SO BECAUSE OF THE REDUCTIONS IN REVENUES
AND IT ALSO HAS A SECONDARY IMPACT ON OUR REVENUE BOND CAPACITY BECAUSE WITH THE REDUCTION IN REVENUES, WE ARE FAR BELOW OUR THRESHOLDS OR DEBT SERVICE COVERAGE MARGINS
SO THAT REDUCES OUR REVENUE BOND FUNDING CAPACITY BECAUSE OF OUR LESSER ABILITY TO LEVERAGE THAT MONEY
AND AGAIN, WE'VE INCORPORATED THE NORTHWEST SEA PORT ALLIANCE CIP
NEXT SLIDE
I THINK THAT'LL BE STEPHANIE AND DAVE
THANK YOU, DAN AND STEVE
THIS SLIDE IS A SPREADSHEET OF THE MARITIME AND ECONOMIC DEVELOPMENT DIVISION PROJECTS
SO YOU COULD SEE IT'S A TOTAL OF ABOUT THREE HUNDRED AND TWELVE MILLION DOLLARS OVER THE FIVE-YEAR PERIOD
THE PROJECTS SHOWN IN BLUE ARE PROJECTS THAT WE ORIGINALLY REVISED EARLIER IN THE PROCESS AS DAN SAID THE FIRST KIND OF BITE OF THE APPLE AND THE PROJECTS SHOWN IN GREEN WERE THE ADJUSTMENTS WE MADE MORE RECENTLY WITH A NEW CAPACITY
THERE'S A LITTLE AND THESE ARE PROJECTS THAT ARE EXTREMELY COOL PROJECTS THAT REALLY WILL DO A LOT FOR OUR ECONOMY AND OUR PORT
SO THESE HAVE BEEN SOME VERY DIFFICULT DECISIONS FOR US
COUPLE HIGHLIGHTS
WE ARE PROPOSING THAT THE NORTH PIER AT T46 SINCE THE LAST TIME WE SAW YOU THAT WE WOULD POSTPONE THAT FOR TWO YEARS DUE THE TO THE CAPITAL CAPACITY CONSTRAINTS
AS YOU KNOW, WE HAD ALREADY POSTPONED THE POSSIBILITY OF A PROPOSED NEW CRUISE TERMINAL
AND LET'S SEE
I WILL LET DAVE SPEAK TO ANY OF HIS PROJECTS ON THIS
WELL, I THINK ON THE UPSIDE WE WERE ABLE TO CONTINUE MOVING T-91 UP ONES FORWARD AND THE MARITIME INNOVATION CENTER, BUT WE HAD TO MAKE TOUGH DECISIONS REGARDING THE ED STRATEGIC OPPORTUNITY FUND, THE FISHERMAN'S TERMINAL GATEWAY BUILDING, AND ANY FUTURE WORK ON T91 UPLANDS, AND I JUST ECHO WHAT STEPHANIE SAYS
REDUCING OUR CAPITAL CAPACITY FROM 500-PLUS TO 300 PLUS
THERE WERE NO EASY DECISIONS TO REALLY MAKE HERE
COMMISSIONER BOWMAN? IF IT'S ALL RIGHT TO ASK A QUESTION NOW, I'D APPRECIATE IT
THANK YOU
YEAH, JUST A COUPLE OF THINGS SO HELP ME UNDERSTAND
SO WE'RE PUSHING
WE STARTED WITH THE FIVE YEAR STRATEGIC CIP TWO YEARS AGO
AND SO IN THAT STRATEGIC PLAN WE HAD ROUGHLY A HUNDRED MILLION DOLLARS FOR A NEW CRUISE TERMINAL, THE GATEWAY PROJECT WAS IN THERE
NOW THESE THINGS ARE BEING PUSHED OUT TO 26 AND BEYOND
SO HELP ME UNDERSTAND AS WE'RE MOVING WITH STEVE YOUR RECOMMENDATION TO CONTINUE WITH THE THREE PERCENT LEVY INCREASE, WOULD YOU EXPECT THAT GIVEN THAT THESE MAJOR PROJECTS WOULD BE PUSHED OUT PAST THIS FIVE-YEAR CIP THAT WE WOULD YOU BE ANTICIPATING CONTINUED LEVY INCREASES PAST 2025? BECAUSE I DON'T SEE HOW WE FUND THESE PROJECTS
YOU'RE ON MUTE STEVE
AND YOU CAN GET BACK TO ME LATER
I'M JUST YOU KNOW; WE ARE ANALYZING THAT COMMISSIONER
THAT IS ONE OF THE THINGS WE GOT TO BE LOOKING AT BEYOND OUR FIVE-YEAR PLAN IN ORDER TO CONTINUE THOSE PROCESSES
AS YOU KNOW, WE WERE DOING VERY WELL EXCEPT FOR RUNNING INTO THIS
WE ARE VERY WE DOING VERY WELL ON OUR PROGRAM UNTIL 2020 TILL THE COVID HIT US
THE PANDEMIC IS HIT US ON THIS
SO WE HAVE TO LOOK BEYOND THIS BUT THE THINGS ARE BEING PUSHED OUT TO THAT AND WE HAVE TO ANALYZE THAT FOR A TAX LEVY BEYOND THAT FIVE-YEAR PERIOD
BUT AS YOU REMEMBER YOU ARE CORRECT
WE HAD FORECASTED INCREASE FOR FIVE YEARS
AND THEN THAT WAS GOING TO MEET OUR SPENDING CAPACITY
AND DAN DO YOU WANT TO ADD TO THAT? YEAH IF I CAN JUMP IN HERE AND I ALSO BELIEVE ELIZABETH MORRISON IS ON THE LINE, BUT I THINK CURRENTLY BEYOND 2025 WE ARE NOT FORECASTING A NEED FOR CONTINUED LEVY INCREASE
I BELIEVE IT CAN FLATTEN AT THAT POINT
AND ONE OF THE REASONS IS ONCE THE CRUISE TERMINAL WOULD BE DEVELOPED WE WOULD GENERATE SIGNIFICANT ADDITIONAL REVENUES
BUT ELIZABETH, IF YOU'RE ONLINE, CAN YOU COMMENT ON THAT? YES, I'M HERE
WE WILL BE PRESENTING THE PLAN OF FINANCE IN TWO WEEKS
WE'RE WORKING ON THAT RIGHT NOW AND CURRENTLY WE'RE ANTICIPATING THAT WE WOULD CONTINUE WITH THAT SAME FIVE YEAR PLAN
SO ONCE WE GET TO 2024, WE WOULD NOT BE INCREASING THE TAX LEVY
BUT THE PLAN IS BASED ON A GREAT DEAL OF UNCERTAINTY
AS YOU KNOW, WE'VE BEEN WORKING WITH SCENARIOS THAT THAT HAVE A LOT OF RISK ASSOCIATED WITH THEM
BOTH UPSIDE AND DOWNSIDE
AND SO WHAT HAPPENS IN THAT SECOND FIVE-YEAR PERIOD WHERE WE HAVE MOVED A NUMBER OF PROJECTS WILL DEPEND A LOT ON HOW REVENUES PAN OUT AND TO WHAT EXTENT WE WANT TO MOVE FORWARD WITH THOSE PROJECTS
THAT'S REALLY HELPFUL
THANK YOU
AND IF I CAN JUST ANOTHER PART OF THIS QUESTION, YOU KNOW, I'M REALLY STRUGGLING
I VERY MUCH UNDERSTAND THE UNCERTAINTY THAT WERE FACING AND THAT'S WHY DAN YOUR POINT ABOUT WELL THINGS WOULD LOOK UP WITH THE NEW CRUISE TERMINAL DEVELOPED IN 2025
THE ORIGINAL ESTIMATE FOR THE CRUISE TERMINAL WAS OVER A HUNDRED MILLION DOLLARS
AND WE KNOW THAT IT WAS ACTUALLY GOING TO BE CONSIDERABLY MORE THAN THAT GIVEN SOME OF THE STRUCTURAL ISSUES THAT WE HAD NOT ANTICIPATED
SO I'M REALLY TRYING TO UNDERSTAND HOW THIS BUDGET AND AGAIN, WE SORT OF DROP OFF A CLIFF AT 2026 BUT WE'RE UNLIKELY TO BRING IN A CRUISE TERMINAL FOR 35 MILLION DOLLARS UNLESS IT HAS SUBSTANTIAL INVESTMENT BY A PRIVATE CRUISE COMPANY WHICH AGAIN THEY ARE REELING FROM 2020 AND MOVING FORWARD
SO I'M JUST TRYING TO PUT IN A LITTLE BIT OF JUST REALISM INTO SOME OF THESE NUMBERS
I MEAN IT'S EASY TO PUSH THINGS OUT AND I UNDERSTAND WHY WE MIGHT WANT TO DO THAT, BUT I JUST WANT TO BE CANDID ABOUT WHAT WE WOULD BE LOOKING AT IN TERMS OF REVENUES AND NOT JUST ASSUMING OKAY WE'RE GOING TO YOU KNOW, NOT INCREASE THE LEVY AFTER 2024 BECAUSE WE SAID WE WOULDN'T
GIVEN THAT SO MANY PROJECTS ARE GOING TO BE PUSHED OUT SO SIGNIFICANTLY, SO I JUST WANTED TO CALL THAT OUT AND THEN THE SECOND THING WAS JUST ON THE RESERVES
I JUST WANT TO COMPLIMENT EVERYBODY ON STAFF FOR ALL OF THE WORK AND IN MOVING THE NUMBERS AROUND AND AND GETTING THE RESERVES DOWN TO A REASONABLE NUMBER
I WOULD COMMENT THOUGH THAT THAT NUMBER FOR RESERVES OF 27 MILLION IS JUST SLIGHTLY MORE THAN WHAT NOT HAVING A LEVY INCREASE IN 2021 WOULD BE
AND SO ESSENTIALLY IT WOULD GIVE ONE THE IMPRESSION THAT WE WOULD MIGHT BE COLLECTING A LEVY INCREASE AND PUTTING IT IN THE BANK FOR LATER
AND SO I JUST WANT TO BE COGNIZANT OF THAT IMPRESSION MOVING FORWARD
AND THEN THE THIRD THING IS THAT WE JUST HAVE SO MANY EXPENSES, REVENUE, GOING DOWN
WITH CRUISE WITH CONFERENCE WITH PARKING
IT SEEMS CHALLENGING TO UM TO JUSTIFY CONTINUING WITH THE SAME CAPITAL INVESTMENT PROGRAM UNLESS WE'RE SHOWING REAL DOLLARS BEING INVESTED BACK INTO THE COMMUNITY
AND WHAT WE'VE DONE IS REDUCE THE CAPITAL PROGRAM BECAUSE WE HAVE REDUCED REVENUES COMING IN AND YET WE'RE STILL CONTINUING WITH THE SAME PROPERTY TAX INCREASE
NOBODY NEEDS TO COMMENT
JUST THAT'S A LOT TO CONSIDER
IT'S JUST I SEE US AS FALLING OFF A CLIFF AND I WANT TO BE REALISTIC ABOUT WHAT WE'RE REALLY THINK WE'RE GOING TO FUND AND MOVE FORWARD WITH IN 2026 AND NOT JUST KEEP PUSHING IT OFF
TO MAKE THOSE DECISIONS
THANKS COMMISSIONER FOR THAT FEEDBACK
COULD I ASK A QUESTION REGARDING REAL ESTATE REVENUE? I'M SORRY, WHO'S SPEAKING? COMMISSIONER FELLEMAN
THE ONE OF THE THINGS I WAS LOOKING FOR WAS, YOU KNOW POTENTIAL, YOU KNOW, A LOT OF OUR CIP IS YOU KNOW LONG-TERM DEVELOPMENT BENEFITS
BUT WE HAVE SOME ASSETS THAT YOU'VE MENTIONED TO ME THAT WE COULD BE RENTING HERE IN THE NEAR FUTURE
YOU SPOKE TO ME ABOUT THE THE PROPERTIES ABOVE THE HIGHLINER AND PERHAPS THE MICK AND I DIDN'T KNOW WHETHER THESE PROPERTIES NEEDED ANY YOU KNOW UPGRADES IN ORDER TO GENERATE REVENUE IN THE NEAR TERM OR WHETHER YOU'RE JUST ABLE TO DEAL WITH THAT STUFF WITHIN YOUR EXISTING BUDGET? MOSTLY WITHIN OUR EXISTING BUDGET
IF IT'S TENANT MOVING INTO LIKE THE MAIN TERMINAL OR ANOTHER PLACE THAT ALLOWS US TO PROVIDE TENANT IMPROVEMENT ALLOWANCES AND THINGS LIKE THAT, BUT YOU'RE ALSO AWARE THAT WE NEED TO MAKE SYSTEMATIC IMPROVEMENTS SOMETIMES TO LIKE THE PARKING LOT, FISHERMAN'S TERMINAL TO PROMOTE ACCESSIBILITY
SO THE ANSWER IS BOTH
BECAUSE I JUST DON'T SEE, YOU KNOW LINE ITEMS FOR THAT SORT OF THING
AND LIKE I SAID, WE I HAD SPOKEN TO YOU EVEN THOUGH WE WERE
I UNDERSTAND WHY YOU'RE NOT MOVING FORWARD WITH GATEWAY
THE IDEA OF POTENTIALLY KNOCKING THE BUILDING DOWN AND EVEN POTENTIALLY A NET SHED
I UNDERSTAND THIS MORE RED SENTIMENTS OF HAVING AN EMPTY NET SHOULD STANDING THERE THEN MAYBE NOT HAVING ONE AT ALL, BUT EVEN USING THAT FOR PARKING AND ALSO ALLOWING A DEVELOPER TO SEE THE EMPTY FOOTPRINTS
UST STUFF THAT WOULD GO TOWARDS, YOU KNOW FUTURE DEVELOPMENTS AND KNOWING POTENTIALLY I DON'T KNOW IF YOU PAY FOR PARKING SOME POTENTIAL REVENUE
I JUST YOU KNOW, SINCE I DON'T SEE ANY OF THAT SORT OF LOWER COST, YOU KNOW REVENUE LINE ITEMS THAT COULD GENERATE REVENUE
JUST WONDERING WHETHER YOU ENVISION ANY OF THAT SORT OF WORK BEING DONE
EXCUSE ME, COMMISSIONER FELLEMAN YOU'LL SEE A LINE ON THIS SCREEN CALLED TENANT IMPROVEMENTS
AND THAT IS THE RESOURCE THAT WE USE WITHIN PORTFOLIO ASSET MANAGEMENT AND TAKE CARE OF MOST NORMAL TENANT IMPROVEMENTS
AND SO WE DO HAVE A RESOURCE FOR THAT AND IN SOMETIMES WE HAVE CAPITAL IMPROVEMENT PROJECTS THAT YOU'LL ALSO KNOW THEY'RE TYPICALLY IN THE MID CAP PROJECTS OR SMALL PROJECTS THAT MAKE REPAIRS OR IMPROVE THOSE ASSETS THAT WE THEN GENERATE THE NEW REVENUE FROM
THANKS FOR THE CLARITY
APPRECIATE IT
I THINK THAT'S A GOOD SEGUE TO THE NEXT SLIDE ACTUALLY
BEFORE WE MOVE ON
CAN I ASK A QUESTION? COMMISSIONER CALKINS
YES
SO AS WE LOOK AT THIS PARTICULAR SLIDE AT YOU KNOW, IT'S THE FIRST THAT I'M HEARING ABOUT THE T46 POSTPONEMENT AND I DO STEPHANIE
WOULD YOU MIND SHARING WITH US A LITTLE BIT WHY WE'VE DECIDED TO DO THAT OR WHY THAT'S CONTEMPLATED
YEAH
SO I THINK THIS THAT SLIDE YOU HAD MOVED IT TO IT IS GOOD
IT DOES COME DOWN COMMISSIONER CALKINS TO CAPITAL CAPACITY
WHEN WE LOOK AT OUR FIVE YEAR CAPITAL CAPACITY WHAT WE'VE SHOWN YOU IN AUGUST WAS A BUDGET THAT HAD THREE 387 MILLION AND WE HAD A NEED TO CUT AN ADDITIONAL 75 MILLION FROM THE BUDGET BEFORE WE BEFORE WE CAME BACK TO YOU NOW
TO WHEN WE RECEIVE THOSE NEW CAPITAL CAPACITY NUMBERS
COULD YOU GO TO THE NEXT SLIDE PLEASE? SLIDE 51, SO IF YOU LOOK AT THIS SLIDE
FINDING 75 MILLION DOLLARS REALLY
YOU KNOW, WE LOOKED CAREFULLY AT THE RESERVES
WE ALSO LOOKED AT THE MID CAP PROJECTS AND CUT ABOUT 10 MILLION OUT OF THE MID CAP PROJECTS, BUT THERE REALLY WASN'T A LOT MORE TO FIND THERE BECAUSE THOSE TEND TO BE PROJECTS THAT IF YOU DEFER THEM, THEY'RE PRETTY IMPORTANT ASSET STEWARDSHIP PROJECTS
SO THEY'RE REALLY THE ONLY THING TO DO IS MOVE ONE OF THE LARGE PROJECTS
SO WE HAD FOUR LARGE PROJECTS ORIGINALLY IN THE BUDGET
THERE'S THAT NORTH PIER STRUCTURE, THE 91 UPLANDS, T91 BIRTH SIX AND EIGHT, AND THE FT GATEWAY
SO WE HAVE ESSENTIALLY MOVED ONE OF OUR MORE PROJECTS AND ONE OF OUR REAL ESTATE PROJECTS, WE HAVE DELAYED
JUST TO CLARIFY THOSE PROJECTS WERE DELAYED FOR LACK OF CASH? THAT IS CORRECT NOT WAS IT WAS THE RIGHT DECISION BASED ON OUR OPERATIONS OR POTENTIAL FUTURE NEED
WE JUST COULDN'T AFFORD IT
THAT IS CORRECT
SO TWO BIG POINTS HERE FOR ME AND THEY'RE BOTH RELATED TO THE LEVY
THE FIRST IS WHEN I ARRIVED AS A COMMISSIONER, WE HAD EXPERIENCED NEARLY A DECADE OF FROZEN LEVY FIGURE, RIGHT? WE HAD SAID WE WILL NOT INCREASE NOT EVEN BY THE RATE EQUIVALENT TO THE CPI SO THAT OUR PURCHASING POWER ON WHAT WE COULD GET AS FROM THAT SAME ABSOLUTE DOLLAR VALUE OF LEVY DIMINISHED OVER TIME
AND WHAT WAS CLEAR TO ME WAS THAT WE DEFERRED MAINTENANCE BECAUSE OF IT
WE DID NOT REINVEST IN KEY ASSETS AT THE PORT OF SEATTLE
AND SO THERE WAS DURING A BOOM ECONOMIC PERIOD THE FIRST COUPLE OF YEARS OF MY TERM THE COMMISSION DECIDED LET'S INCREASE THE LEVY SO THAT WE CAN ADDRESS SOME OF THAT
LET'S USE SOME OF THE SURPLUS AND CASH THAT WE'RE GETTING BECAUSE WE ARE IN A VERY STRONG ECONOMIC PERIOD TO TRY TO CHEW AWAY AT THOSE DEFERRED MAINTENANCE COSTS
AND HOPEFULLY CAPTURE OPPORTUNITIES FOR FUTURE REVENUES BECAUSE WE HAVE THE CASH TO BE ABLE TO MAKE INVESTMENTS THAT WILL HAVE A VERY STRONG RETURN ON INVESTMENTS
I'M AFRAID WE'RE ABOUT TO MAKE THE SAME MISTAKE AGAIN
WE'RE ABOUT TO MAKE A DECISION TO SAY WE ARE GOING TO HUNKER DOWN
ON AND ONLY INCREASE THE LEVY BY THE ESSENTIALLY WHAT I CONSIDER THE DEFAULT, WHICH IS KEEPING PACE WITH THE OVERALL ECONOMY, YOU KNOW, THIS IS IN MY OTHER ROLE AS A BUSINESS CONSULTANT
EVERY CLIENT I NEED TO CONVINCE THAT YOU NEED TO RAISE PRICES ON A YEARLY BASIS OR YOUR PRICES ARE FALLING BEHIND YOUR COST
THE SAME IS HAPPENING AT THE PORT
WE NEED TO RECOGNIZE THAT AN ANNUAL INCREASE IN OUR LEVY IS SIMPLY A MEANS OF ROUGHLY THE CONSUMER PRICE INDEX IS SIMPLY A MEANS OF KEEPING PURCHASING POWER PARITY FOR WHAT WE GET
AND SO I'LL ADMIT I'M NOT HAPPY WITH THIS THREE PERCENT LEVY INCREASE BECAUSE I THINK WE ARE SACRIFICING FUTURE OPPORTUNITIES AND PUSHING ON TO A FUTURE COMMISSION DEFERRED MAINTENANCE THAT WE SHOULD BE HANDLING NOW
AND I RECOGNIZE THAT DURING A PERIOD OF ECONOMIC DOLDRUMS THERE'S A REAL CONCERN ABOUT THOSE WHO WOULD BE IMPACTED BY INCREASED LEVY RATES, BUT I HAVE SPENT A LOT OF TIME ASKING A LOT OF PEOPLE WHO KNOW A LOT MORE ABOUT THIS THAN I DO AND THE FOLKS WHO WOULD BE IMPACTED BY THE INCREASE ARE THE ONES WHO ARE MOST ABLE TO MANAGE IT RIGHT NOW
IT IS NOT LOW INCOME RENTERS
IT IS PEOPLE WHO HAVE SUFFICIENT INCOME TO BE ABLE TO MANAGE THIS KIND OF THING
PARTICULARLY AT A TIME WHEN PROPERTY VALUES CONTINUE TO INCREASE
SO I AM LODGING A PROTEST HERE
I THINK WE NEED TO BE MORE AGGRESSIVE
I DO NOT WANT US POSTPONING THINGS FOR LACK OF CASH WHEN WE DON'T LACK CASH
OR AT LEAST NOT THIS AMOUNT
WHEN WE DO HAVE THE ABILITY AS A COMMISSION TO GIVE EXECUTIVE DIRECTOR METRUCK AND OUR LEADERSHIP TEAM THE ABILITY TO SAY YES TO THESE NECESSARY PROJECTS INSTEAD OF CONTINUING TO DEFERMENT MAINTENANCE ON THEM
AND SO FOR ME WHEN I HEAR US SAY IN 2026, WE'RE GOING TO RETURN TO NO INCREASE TO THE LEVY NOW
I WANT US TO UNDERSTAND THE DEFAULT FOR ME IS MAINTAINING AN INCREASE TO THE LEVY THAT IS EQUIVALENT TO OUR LOCAL CPI
AND UNTIL THE GOVERNMENT THE FED SAYS THAT OUR GOAL IS TO HAVE A ZERO PERCENT INFLATION RATE THAT'S NECESSARY FOR US TO MAINTAIN PURCHASING POWER
AND SO I WILL CONTINUE TO PUSH OVER THE NEXT MONTH AS WE CONSIDER THIS BUDGET FOR THAT INCREASE IN THE LEVY TO BE ABLE TO PULL THESE PROJECTS BACK INTO OUR OUR PLAN FOR 2021 AND BEYOND
THAT'S IT FOR ME
THANK YOU COMMISSIONER CALKINS
COMMISSIONER STEINBREUCK
WOULD YOU LIKE ME TO CHECK IN WITH COMMISSIONER CHO REGARDING IF HE HAS ANY QUESTIONS? YEAH, LET'S MAKE SURE EVERYONE HAS EQUAL OPPORTUNITY TO ASK QUESTIONS AND MAKE COMMENTS
THANK YOU
COMMISSIONER CHO
DO YOU HAVE ANY QUESTIONS OR COMMENTS? I DON'T HAVE ANY COMMENTS
I MEAN, I DON'T HAVE ANY QUESTIONS IN PARTICULAR BUT YOU KNOW, I WOULD LIKE TO MAKE A COMMENT WITH REGARDS TO THE QUESTION OF WHETHER OR NOT WE CONTINUE THE THREE PERCENT LEVY INCREASE
YOU KNOW, I THINK THAT IF WE WERE CONSIDERING INCREASING BEYOND THREE PERCENT THAT WE HAD ALREADY PLANNED THAT'S WORTH MORE DISCUSSION, BUT QUITE FRANKLY, I BELIEVE THAT A PROPERTY TAX LEVY IS THE CLOSEST THING THAT WE HAVE TO A PROGRESSIVE TAX
AND THE REALITY IS THAT PEOPLE WITH HIGHER PROPERTY VALUES PAY MORE, YOU KNOW DOLLAR AMOUNT INTO IT
AND SO YOU KNOW WHILE I UNDERSTAND YOU KNOW THAT WE EVERYONE IS IS KIND OF STRAINED BECAUSE OF THE PANDEMIC I THINK THAT IF WE ALLOCATE THIS FUNDING IN A WAY THAT CREATES A MULTIPLIER EFFECT WITHIN THE LOCAL ECONOMY, YOU KNOW, OUR CONSTITUENTS AND STAKEHOLDERS WOULD FIND IT TO BE A PRUDENT MOVE
AND SO, YOU KNOW AT THIS POINT, YOU KNOW, I THINK THAT GOING FORWARD AND KEEPING WHAT WE HAD ALREADY ORIGINALLY PLANNED IS THE BEST MOVE
SO THAT'S ALL I WANTED TO SAY
THANK YOU FOR YOUR COMMENTS
I DO SEE COMMISSIONER BOWMAN STILL HAS HER HAND UP OR DID WE SKIP HER? NO, ACTUALLY SHE COMMENTED AT THE BEGINNING OF THIS
ARE THERE ADDITIONAL COMMENTS
ALL RIGHT
I DO HAVE A COMMENT ON THE LEVY
I SUPPORT THE PLAN THAT WE AGREED TO PREVIOUSLY WHICH IS TO CONTINUE WITH THE THREE PERCENT
I THINK IT NEEDS TO BE SEEN IN CONTEXT IN TERMS OF THE THE FACT THAT THIS LEVY IS A TINY FRACTION OVERALL FOR PROPERTY TAXES THAT ARE LEVIED
I DO THINK THAT THERE IS A MULTIPLIER EFFECT THAT AFFECTS PARTICULARLY LOW-INCOME RENTERS WHO HAPPEN TO BE HOUSED IN PROPERTY THAT THE OWNERS ARE PAYING TAXES ON AND THOSE INCREASES AS COMMISSIONER CALKINS SAID ARE USUALLY PASSED ON
YOU DON'T JUST CONTINUE TO ABSORB
SO I THINK WE SHOULD LIVE WITHIN OUR MEANS AND THAT THIS IS NOT THE YEAR TO GO BEYOND WHAT WE ALREADY AGREED TO
I THINK WE'RE DOING CATCH UP HERE WITH REGARD TO THE LOSS OF VALUE OVER 10 YEARS
IN WHICH TIME THE COMMISSION OPTED THE FORMER COMMISSION NOT TO RAISE THE LEVY AND KEEP UP WITH THE COST OF INFLATION AND OTHER DEMANDS
SO I VOICE MY SUPPORT FOR THE RECOMMENDATION AS STAFF HERE
NOW WE MOVE TO COMMISSIONER BOWMAN, THANK YOU
THANKS
I'LL JUST BE BRIEF
JUST A COUPLE OF THINGS
I ASKED THE STAFF TO PROVIDE FOR ALL OF US I THINK IT WOULD BE ILLUSTRATIVE TO SEE THE ORIGINAL CIP FIVE-YEAR CIP THAT WE ADOPTED IN 2019 AND THEN WHAT 2020 LOOK LIKE AND WHAT YOU'RE PROPOSING NOW
BECAUSE THE NUMBERS OF MOVED AROUND SUBSTANTIALLY AND I THINK IT'S IMPORTANT TO LOOK AT THAT
I DO WANT TO CALL OUT TO A COUPLE OF POINTS
WHILE I VERY MUCH APPRECIATE AND I'M THE NUMBER-ONE SUPPORTER OF ASSET PRESERVATION AND MAINTENANCE
THAT IS A CORE TENANT OF MINE
THE STRATEGIC FIVE-YEAR CIP THAT WAS INTRODUCED IN 2019 AND ADOPTED DID ASSET PRESERVATION MAINTENANCE BUT HAS A SUBSTANTIAL AMOUNT FOR NEW ENDEAVORS
MIGHT I CALL OUT T91 UPLANDS DEVELOPED PHASE ONE I MEAN 47 MILLION DOLLARS
A HUNDRED MILLION DOLLARS PER NEW CRUISE TERMINAL
THE MARITIME INNOVATION CENTER
THESE ARE ALL GREAT PROJECTS, BUT JUST THE IMPRESSION THAT THAT WE DIDN'T RAISE THE LEVY OR FORMER COMMISSIONERS DIDN'T RAISE A LEVY FOR MANY YEARS AND THEREFORE THINGS WERE MOTHBALLED AND THAT THE LEVY IS ONLY GOING TOWARDS CATCH UP ASSET PRESERVATION MAINTENANCE IS NOT ACCURATE
THE BULK OF THE MONEY IN WHICH WE ADOPTED IN 2018
EXCUSE ME, 2019 WAS FOR NEW INITIATIVES
AND THOSE PROJECTS HAVE CHANGED SUBSTANTIALLY
SO ALL I'M ASKING IS FOR MY COLLEAGUES TO TAKE A LOOK AT HOW THOSE PROJECTS HAVE CHANGED AND THE DIRECTION OF THE PORT
I THINK THERE'S A WIDE VARIETY OF OPINIONS THAT I SO MUCH RESPECT THEM AND ESPECIALLY COMMISSIONER CALKINS AT ONE END WHO THINKS THAT WE SHOULD HAVE A LEVY INCREASE EVERY YEAR EQUAL TO THE CIP
I ABSOLUTELY UNDERSTAND THAT POINT OF VIEW
I JUST WANT TO POINT OUT THAT THIS THIS STRATEGIC PLAN THAT WAS PUT FORWARD IN 2019 WAS THAT WE WOULD NOT INCREASE THE LEVY AFTER 2024
AND SO IF THE STAFF
I JUST WANT TO BE CLEAR ABOUT WHAT THIS STAFF IS PROPOSING MOVING FORWARD AFTER 2025
BECAUSE AGAIN, I DON'T SEE HOW WE FUND THESE PROJECTS IN THE OUTER YEARS UNLESS WE CONTINUE THAT LEVY INCREASE
AND IF WE'RE NOT GOING TO CONTINUE IT THEN I THINK WE'RE GOING TO HAVE TO DO QUITE A BIT OF REJIGGERING TO FIGURE OUT HOW TO AFFORD THESE PROJECTS
SO I REALLY LOOK FORWARD TO MORE DETAIL MOVING FORWARD ON THIS
SO THANK YOU SO MUCH TO THE STAFF FOR ALL OF THE WORK AND I REALLY KNOW HOW EVERYBODY IS REALLY SCRAPED THEIR BUDGETS AND LOOK TO SEE WHAT SORT OF COST SAVINGS WE MIGHT HAVE
AND TIMES HAVE CHANGED AND MAYBE THE GATEWAY PROJECT AS ORIGINALLY PROPOSED IS NOT THE PROJECT TO MOVE FORWARD ON BUT IT WAS PART OF THE ORIGINAL FIVE YEARS CIP AS WAS A VERY EXPENSIVE CRUISE TERMINAL AND SO I JUST WANT TO ACKNOWLEDGE THOSE
CHANGING CIRCUMSTANCES AND THINK THAT WE SHOULD CONSIDER HOW WE FUND NEW PROJECTS MOVING FORWARD AS WELL
THANK YOU
THANKS COMMISSIONERS
IF I CAN JUMP IN HERE
THANKS COMMISSIONERS FOR THAT FEEDBACK
AND I THINK IF WE JUST WANT TO MOVE OFF THIS SLIDE TO SLIDE 52, I THINK WE'VE TALKED ABOUT EVERYTHING ON SLIDE 52 AND WE'LL MOVE TO SLIDE 53, BUT I JUST WANT TO ASSURE THE COMMISSIONERS
WE'VE HAD DISCUSSIONS ABOUT THIS HERE, WHICH IS WE'VE LOOKED AT BEFORE I I CAME UP WITH THIS RECOMMENDED COURSE, I DID EXAMINE BOTH THE 0% AND THE FIVE PERCENT INCREASE AND YOU CAN SEE HERE THAT TALKS ABOUT THIS THAT GOES OVER THIS THAT SHOWS THE DIFFERENCE ON THAT
AND WE CAN PROVIDE MORE IF THERE'S MORE QUESTIONS ABOUT THAT
THIS KIND OF SHOWS THAT IF WE DECREASE THE 4%, THE IMPACT OF FURTHER DELAYS HERE, AND I DON'T KNOW IF STEPHANIE IF YOU WANT TO TALK ABOUT THIS
I COULD JUMP IN
DAN, YA
FIRST OF ALL, I JUST WANTED TO CLARIFY BECAUSE PERHAPS I MISSPOKE ON THAT FIRST BULLET
SO THE ASSUMPTION IN THE CURRENT FUNDING PLAN IS THAT THEY WOULD CONTINUE WITH THE THREE PERCENT LEVY INQUIRIES THROUGH 2023
SO CONSISTENT WITH THE ORIGINAL FIVE-YEAR PLAN, SO STARTING IN 2024 THE LEVY WOULD THEN REMAIN FLAT
SO IT ONLY INCREASES THROUGH 2023
AND AGAIN, THIS IS OUR RECOMMENDATION BASED ON A COUPLE OF CONSIDERATIONS
ONE CLEARLY WE'VE ALREADY LOST A LOT OF CAPACITY SO THAT THIS DOES AT LEAST CONTINUE WITH A LITTLE OVER THREE HUNDRED MILLION DOLLARS OF FUNDING CAPACITY TO MOVE FORWARD
NOT ONLY ON THE CAPITAL INITIATIVES, BUT AS A REMINDER THAT THE LEVY ALSO FUNDS A SIGNIFICANT AMOUNT OF THE COMMUNITY PROGRAMS THINGS LIKE THE PROGRAMS THAT MCFADDEN TALKED ABOUT THE TOURISM AND THE PARTNERSHIP GRANTS, WORKFORCE DEVELOPMENT, DIVERSITY IN CONTRACTING AS WELL AS AS YOU KNOW, THINGS LIKE THE SOUTH COUNTY FUND AND THE VARIOUS OTHER FUNDS
SO IT REALLY FUNDS A LOT OF PROGRAMS THAT STIMULATE THE ECONOMY AND HELP THE PORT TO LEAD THE RECOVERY
WE'VE TALKED ABOUT THE INFLATION CONSIDERATIONS
IT'S TRUE
WE HAVE LOST A GREAT DEAL OF BUYING POWER OVER THE PAST DECADE
WE'RE TRYING TO CATCH UP A LITTLE BIT .AND I WOULD NOTE THAT IT'S NOT JUST EVEN CPI BECAUSE CONSTRUCTION INFLATION ACTUALLY HAS BEEN RUNNING GREATER THAN CPI
IN FACT OUR LATEST DATA SHOWS THAT FOR LAST YEAR CONSTRUCTION INFLATION IN THE PUGET SOUND REGION RAN ABOUT FIVE AND A HALF PERCENT
SO SIGNIFICANTLY OVER EVEN CPI
AND WE ARE ALSO TRACKING A NUMBER OF ITEMS THAT AREN'T CURRENTLY FUNDED IN THE BUDGET
SOME UNFORESEEN ITEMS THAT WE'RE STILL EVALUATING AND INCLUDE SOME POTENTIAL INVESTMENTS NEEDED ON THE BULKHEAD ON TERMINAL 46, AS YOU KNOW, THAT T-5 FLYOVER IS OUT THERE
A NUMBER OF INITIATIVES THAT WE ARE KEEPING OUR EYES ON SO WE BELIEVE WE NEED SOME FLEXIBILITY FOR THAT
AND THEN AGAIN AS STEVE MENTIONED WE DID LOOK AT THESE TWO OTHER ALTERNATIVES KEEPING IT FLAT NEXT YEAR AND THEN RETURNING TO A 3% INCREASE THROUGH 2024
BECAUSE OF THE REDUCTION IN GEO BOND FUNDING CAPACITY THAT WOULD REDUCE CAPACITY BY ABOUT TWENTY TWO MILLION DOLLARS
AND BASED ON THE PRIORITIZATION THAT STEPHANIE AND DAVID MCFADDEN PUT TOGETHER THAT WOULD FURTHER DELAY THE TERMINAL 46 PIER REPLACEMENT AND THEN DEFER ANOTHER NINE MILLION DOLLARS OF MID-CAP PROJECTS
ALTERNATIVELY IF WE INCREASE BY 5% NEXT YEAR AND THEN CONTINUED WITH A 3% THROUGH 2023 THAT AMOUNT WOULD FULLY FUND THE CIP AS INITIALLY PUT TOGETHER AND ALSO WOULD ALLOW FOR THE ACCELERATION OF THE T46 NORTH PIER REPLACEMENT PROJECT
LOOKS LIKE COMMISSIONER CALKINS HAS A QUESTION
YEAH, I'D LIKE TO JUST
PETER, YOU'RE MUTED
I WOULD LIKE TO ASK WOULD LIKE TO ASK WE STICK TO OUR PROCESS HERE, WHICH IS TO CALL COMMISSIONERS BY ROLL CALL NOT INDIVIDUALLY THROUGHOUT THE PRESENTATION TO IT MAKES IT VERY DIFFICULT TO HAVE BALANCE AND AN OPPORTUNITY FOR EVERYONE TO SHARE
SO WE CAN TAKE PAUSES AND THEN DO ROLL CALL AND BUT LET'S LEAVE THAT TO OUR CLERK TO CALL ON COMMISSIONERS IN ORDER
THANK YOU
OKAY
THANK YOU COMMISSIONER
SO, I BELIEVE WE'RE CONTINUING ON WITH THE PRESENTATION AT THIS POINT
I THINK SO COMMISSIONER STEINBREUCK
YOU DIDN'T WANT ME TO STOP FOR A ROLE AT THIS POINT DID YOU? YOU'RE MUTED COMMISSIONER
YOU'RE MUTED AGAIN
COMMISSIONER STEINBREUCK YOU ARE MUTED
THERE YOU GO
OKAY, FRUSTRATING
LET'S CONTINUE AND THEN TAKE A PAUSE AT AN APPROPRIATE BREAK AND TAKE ROLL CALL
THANK YOU
SO I THINK I WAS JUST GOING TO CONCLUDE THAT WE HAVE WORKED IT BETWEEN THE OPERATING DIVISIONS TO PUT TOGETHER A BUDGET THAT ADJUSTS TO THE NEW BUSINESS REALITIES AND THE CONSTRAINT FINANCIAL CAPACITY
WE DO HAVE REDUCED FLEXIBILITY BASED ON THE FINANCIAL CAPACITY
I DO WANT TO POINT OUT IN RESPONSE TO SOMETHING BOWMAN SAID WHICH MAY BE CLEAR BUT THE TOTAL COST OF THE CRUISE TERMINAL AND OTHER PROJECTS HAS NOT GOTTEN SMALLER
BUT BECAUSE THEY'RE MOVED OUT IN TIME WE'RE SHOWING A SMALLER AMOUNTS IN THIS FIVE-YEAR PERIOD
THE BUDGET AS WE'VE SHOWN MEETS OUR CRITICAL NEEDS ASSET PRESERVATION, FINANCIAL SUSTAINABILITY AND ENVIRONMENT AND COMMUNITY AND I KNOW YOU HAVE A LOT MORE TO TALK ABOUT TODAY
SO I WILL JUST END THERE
THANKS STEPHANIE
COMMISSIONER STEINBREUCK WE CAN CONTINUE ON OR I DIDN'T KNOW IF YOU WANT TO STOP HERE BEFORE WE GO INTO THE LAST SECTION, WHICH IS JUST THE BUDGET ROLE
THE WAY AHEAD YOU'RE MUTED COMMISSIONER STEINBREUCK
THERE'S A DELAY WHEN I HIT THE UNMUTE BUTTON
LET'S PAUSE HERE FOR A MINUTE AND SEE IF THERE'S COMMISSIONER QUESTIONS BY ROLL CLERK? THANK YOU COMMISSIONER STEINBREUCK
BEGINNING WITH COMMISSIONER FELLEMAN QUESTIONS OR COMMENTS IF YOU'RE STILL WITH US ON THE LINE
I HAVE NO FURTHER QUESTIONS
I'M GOING TO HAVE TO STEP OFF THE CALL
AND THANK YOU VERY MUCH FOR THIS VERY THOUGHTFUL UPDATE, BUT FAMILY CALLS
TALK TO YOU LATER
THANK YOU
COMMISSIONER CHO, QUESTIONS OR COMMENTS? NOT AT THIS TIME
THANK YOU
THANK YOU
COMMISSIONER CALKINS
I KNOW YOU HAD YOUR HAND RAISED
THANK YOU, CLERK HART
THANK YOU DAN FOR THOSE REALLY THOUGHTFUL CONTEXTUALIZING COMMENTS
IT REMINDS ME OF A FURTHER CONCERN THAT I HAD WHICH IS PART OF WHY
PART OF HOW WE HAVE REDUCED THE FIVE-YEAR CIP IS BY REDUCING RESERVES
WHICH I UNDERSTAND IN ORDER TO MEET THESE TARGETS WE NEED TO DO THAT
BUT
I AM CONCERNED THAT IT LEAVES US EVEN LESS WIGGLE ROOM IN THE EVENT OF FUTURE UNANTICIPATED COST INCREASES
AND DAN YOU MENTIONED A PROJECT THAT IS NOT INCLUDED IN HERE BUT THAT MAY COME UP THAT IT'S FAIRLY RECENTLY DISCOVERED
YOU KNOW, IF I'VE LEARNED ANYTHING IN THREE YEARS HERE IT'S THAT WE ARE MORE OFTEN SURPRISED BY NEW COSTS THAN WE ARE SURPRISED BY LOWER COSTS
AND SO, YOU KNOW THOSE RESERVES I THINK ARE VERY IMPORTANT PART OF HOW WE STICK TO AN ORIGINAL CIP AND STICK TO BUDGET AND SCHEDULE IN THOSE
AND IN ADDITION, YOU KNOW, AS YOU MENTIONED SO MANY OF THE LINE ITEMS IN OUR PARTICULAR BUSINESS ARE EXPERIENCING SIGNIFICANT INFLATION PRESSURES
AND SO, YOU KNOW, I JUST
I ABSOLUTELY RESPECT THE OPINIONS OF MY CO COMMISSIONERS I JUST WOULD URGE US TO CONSIDER AN APPROACH THAT WOULD AT LEAST MATCH THE INCREASES OVER TIME
AND SO I KNOW WE'VE GOT ANOTHER MONTH OR SO BEFORE FINAL PASSAGE, BUT I HOPE WE CAN CONTINUE THESE CONVERSATIONS
THANK YOU COMMISSIONER CALKINS FOR YOUR COMMENTS
COMMISSIONER BOWMAN
NO FURTHER COMMENTS
THANK YOU VERY MUCH FOR THE PRESENTATIONS
AND THE COMMISSIONER STEINBREUCK
I HAVE NO COMMENTS
THANKS
EXECUTIVE DIRECTOR METRUCK, PLEASE CONTINUE
OKAY, DAN
ARE YOU GOING TO DO? SO WE JUST
IF YOU CAN MOVE TO THE NEXT SLIDE
WANT TO PROVIDE YOU WITH JUST A QUICK SNAPSHOT IN THE INTEREST OF TIME
I'LL BE VERY BRIEF, BUT JUST TO ROLL UP ALL THE DIVISIONS AND CENTRAL SERVICES BUDGETS TOGETHER TO GIVE YOU AN OVERVIEW OF THE PORT WIDE PRELIMINARY BUDGET
THESE NUMBERS WILL CONTINUE TO GET REFINED AND BIT AS WE MOVE TOWARDS THE NOVEMBER INTRODUCTION AND PASSAGE OF THE BUDGET, BUT JUST TO GIVE YOU A SNAPSHOT OF WHERE WE ARE IN TIME
AGAIN, YOU'VE HEARD MOST OF THE REASONS BEHIND THE NUMBERS
PORT WIDE OUR REVENUES ARE DOWN BY ABOUT A HUNDRED TWENTY SIX MILLION DOLLARS, FIFTEEN POINT SIX PERCENT COMPARED TO OUR 2020 APPROVED BUDGET
AND AS YOU KNOW, THAT'S PRETTY MUCH ACROSS THE BOARD ACROSS ALL OF OUR MAJOR BUSINESS LINES, INCLUDING AVIATION, NON AERONAUTICAL, PARTICULARLY THE CRUISE BUSINESS OF WHICH AS YOU KNOW, WE HAD NO CRUISE SEASON THIS YEAR
AND THEN ALSO SOME SIGNIFICANT REDUCTIONS IN THE CONFERENCE AND EVENT CENTER REVENUES
WE HAVE, AS YOU KNOW, DONE A GREAT JOB IN TRYING TO REDUCE EXPENSES THROUGH A ZERO-BASED BUDGETING PROCESS
WE'VE REDUCED EXPENSES BY NEARLY 50 MILLION DOLLARS PORT-WIDE, ABOUT 10 PERCENT COMPARED TO THE 2020 APPROVED BUDGET
AND THEN NET OPERATING INCOME PORT WIDE IS DOWN ABOUT 78 MILLION DOLLARS, OR ABOUT 23%
AS YOU'VE HEARD A SIGNIFICANT PORTION OF OUR EXPENSE SAVINGS FOR NEXT YEAR ARE THROUGH VACANT FTES THAT HAVE BEEN FROZEN
HUNDRED AND SIXTY SEVEN POSITIONS PORT WIDE
SO THAT HAS ENABLED US TO REDUCE COSTS WHILE NOT HAVING TO TAKE ANY PERSONNEL ACTIONS SUCH AS FURLOUGHS OR LAYOFFS AT THIS POINT IN OUR BUDGET
AND THEN AGAIN, WHEN YOU ROLL UP THE ENTIRE CIP FOR ALL DIVISIONS, IT AMOUNTS TO 3.7 BILLION DOLLARS
NEXT SLIDE TO SLIDE 57, PLEASE
THIS IS JUST THE WHOLE BUDGET IN TABULAR FORMAT
I WON'T SPEND REALLY MUCH TIME ON HERE
BUT AGAIN ON THE COLUMN ON THE RIGHT THERE SECOND-TO-LAST SHOWING THE DOLLAR CHANGES
AS YOU CAN SEE AGAIN PRETTY MUCH ACROSS THE BOARD REDUCTIONS IN REVENUES AND THEN SIMILARLY ACROSS-THE-BOARD REDUCTIONS IN EXPENSES THAT ARE INCORPORATED INTO THE 2021 BUDGET
NEXT SLIDE, PLEASE 58
THIS IS WHAT WE CALL OUR PORT WIDE COMPREHENSIVE BUDGET SUMMARY
IT'S A LITTLE BIT OF A DIFFERENT PRESENTATION FORMAT THAN WHAT WE PROVIDE IN OUR PUBLISHED FINANCIAL REPORTS
OUR PUBLISHED REPORTS NORMALLY START WITH ALL THE OPERATING REVENUES AND EXPENSES AND THEN ALL THE NON OPERATING REVENUES AND EXPENSES BELOW THAT
BUT HERE WE JUST WE ORGANIZE THEM SO THAT ALL OF THE REVENUES ARE AT THE TOP, OPERATING AND NON-OPERATING, AND ALL OF THE EXPENSES ARE AT THE BOTTOM, OPERATING AND NON-OPERATING
BECAUSE WE THINK IT GIVES OF A FULLER PICTURE OF ALL THE SOURCES OF REVENUE AND THEN THE USES AND THE EXPENSES
AGAIN AS YOU CAN SEE THINGS LIKE THE REDUCTION IN OPERATING REVENUES
YOU HEARD ABOUT THE, AS YOU KNOW, SIGNIFICANT REDUCTION IN PFCS AT THE AIRPORT
WE DO CONTINUE TO RECEIVE SOME SIGNIFICANT GRANTS
WE ARE SEEING SOME INCREASES IN THOSE AND THEN AGAIN PRETTY MUCH ACROSS-THE-BOARD REDUCTIONS IN EXPENSES, INCLUDING NOT ONLY OPERATING CATEGORIES, BUT NOT OPERATING
AND I WOULD CALL YOUR ATTENTION TO THE BOTTOM HIGHLIGHTED ROW PARTICULARLY IN THE 2121 PROPOSED BUDGET COLUMN
THAT'S REVENUES OVER EXPENSES OF 202 MILLION DOLLARS
THAT IS COMPARABLE TO WHAT A CORPORATION WOULD BOOK AS THEIR NET PROFIT
TOTAL REVENUES MINUS TOTAL EXPENSES
SO WE EVEN WHILE IT'S DOWN COMPARED TO WHERE WE'VE BEEN IT'S STILL AT A RELATIVELY HEALTHY 200 MILLION DOLLARS BUDGETED FOR 2021
NEXT SLIDE, PLEASE
AND AGAIN ON THE CIP
THIS IS JUST THE ROLL-UP OF THE NUMBERS YOU'VE ALREADY SEEN
TOTAL CIP OF 3.7 BILLION DOLLARS
THIS DOES NOT INCLUDE THE CONTRIBUTION TO THE SEA PORT ALLIANCE OUR SHARE
I APOLOGIZE
THIS FOOTNOTE IS A LITTLE BIT OUT OF DATE
SHOWS 191
IT'S ACTUALLY GOING TO BE LESS THAN THAT
AS I SAID THE NORTHWEST SEA PORT ALLIANCE CIP HAS BEEN EVOLVING OVER THE PAST FEW WEEKS
SO WE'RE STILL REFINING OUR NUMBERS
NEXT SLIDE, PLEASE
JUST NEXT STEPS
I THINK YOU'RE PRETTY FAMILIAR WITH THIS
WE WILL BE RELEASING THE PRELIMINARY BUDGET DOCUMENT NEXT WEEK
ACTUALLY WILL BE PROVIDED TO THE COMMISSION
WE'RE GOING TO MAIL IT TO YOUR HOMES ON TUESDAY AND THEN WILL BE RELEASED TO THE PUBLIC LATER IN THE WEEK
ON THE 27TH WILL BE PROVIDING THE DRAFT PLAN OF FINANCE AND TAX LEVY DISCUSSION MORE DETAILS ON THAT
YOU'RE AWARE OF THE NORTHWEST SEA PORT ALLIANCE STUDY SESSION AND BUDGET ADOPTION COMING UP IN LATE OCTOBER AND EARLY NOVEMBER
AND THEN WE'LL BE BACK IN NOVEMBER FOR INTRODUCTION OF THE BUDGET AND ADOPTION
SO THAT'S THE REMAINING STEPS
I BELIEVE THAT'S ALL WE HAD
OKAY, ONE MORE OPPORTUNITY FOR US TO ASK QUESTIONS OR MAKE COMMENTS
THANK YOU
COMMISSIONER STEINBREUCK
BEGINNING WITH COMMISSIONER CHO
NO FURTHER QUESTIONS
THANK YOU
THANK YOU, COMMISSIONER CALKINS
NONE FOR ME
THANK YOU
THANK YOU
COMMISSIONER BOWMAN
NO, THANK YOU
THANK YOU
AND COMMISSIONER STEINBREUCK
ALL GOOD
THANK YOU
THANKS COMMISSIONERS
AND THANKS FOR YOUR FEEDBACK ON THIS
I KNOW IT'S TAKEN A LOT OF TIMES
I APPRECIATE YOUR PATIENCE AND YOUR ENDURANCE
THANK YOU ON THE BUDGET
WE HAVE A TIME CONSTRAINT HERE
WE HAVE THE EXECUTIVE SESSION SCHEDULED FOR 315
I THINK? 3:45 COMMISSIONER
WE COULD CONTINUE WITH THE AGENDA, WE COULD ALTER THE AGENDA, BUT I'M HOPING WE CAN MAKE PROGRESS
WE HAVE TWO ADDITIONAL ITEMS INCLUDING THE BYLAWS INTRODUCTION WHICH CAN BE CONTINUED TO THE NEXT MEETING OF THE COMMISSION ON THE 27TH
IT'S A TWO MEETING REQUIREMENT
IT'S BEEN IN THE WORKS FOR OVER A YEAR AND THERE'S BEEN A TREMENDOUS AMOUNT OF EFFORT HAS GONE INTO IT
WHAT ARE YOUR PREFERENCES HERE? IF ANYBODY WANTS TO PROPOSE A CHANGE TO THE AGENDA OR CONTINUE WITH THE REMAINING HALF-HOUR WE HAVE PRIOR TO EXEC SESSION COMMISSIONER STEINBREUCK
IF I MAY JUST JUMP IN
I WOULD RECOMMEND IF THE COMMISSION IS COMFORTABLE WITH IT
I MET WITH ALL COMMISSIONERS PRIOR TO THIS MEETING TO BRIEF THEM ON THE BYLAWS AMENDMENT PACKAGE
IF WE COULD FOREGO THE PRESENTATION AND JUST GET THE INTRODUCTION PASSED, THEN WE CAN HAVE THIS DISCUSSION AT OUR FOLLOWING MEETING
OKAY, THAT WOULD SEEM LIKE A SENSIBLE APPROACH TO ME
I DON'T WANT TO KEEP KICKING THE CAN ON THIS, HOWEVER
AS I SAID, IT IS IMPORTANT AND IT DOES AFFECT NOT JUST THE COMMISSION MEMBERS AND STAFF BUT MEMBERS OF THE PUBLIC WHO ENGAGE WITH US FREQUENTLY
SO I THINK WE THAT'S A GOOD PLAN AND THEN WE'LL DO THE IAF BRIEFING
ACTUALLY THAT COMES NEXT BECAUSE THE AGENDA WAS AMENDED TO PUT THE BYLAWS LAST ON THE AGENDA
THAT'S CORRECT
LET'S MOVE ON TO THE NEXT ITEM
NUMBER 9 B
I THINK IT IS
IAF BRIEFING
YES
I'LL GO AHEAD AND READ THAT INTO THE RECORD ITEM 9B IS INTERNATIONAL ARRIVALS FACILITY PROGRESS BRIEFING
THIS IS CIP NUMBER C-800583
COMMISSIONERS THIS BRIEFING WILL UPDATE YOU ON THE INTERNATIONAL ARRIVALS FACILITY WHICH CONTINUES TO MAKE HEADWAY TOWARDS CONSTRUCTION COMPLETION
ANTICIPATING THIS WOULD BE A LONG MEETING DAY WE ABBREVIATED THE PRESENTATION AND THEREFORE IT'S DESIGNED TO GIVE THE PORT AND KEY MEMBERS OPPORTUNITY TO SPEAK ON THAT PROGRESS AND I'M GOING TO TURN IT OVER TO THE CHIEF OPERATING OFFICER AND HEAD OF THIS PROJECT DAVE SWAKEY
GOOD AFTERNOON
WE HAVE SHORTENED OUR SLIDE DECK FOR BREVITY TO JUST 12 SLIDES HALF OF WHICH ARE PHOTOS OR CHARTS
SO YOU'LL BE ABLE TO QUICKLY SEE THE POSITIVE PROGRESS WE'RE MAKING
I WOULD SAY THAT OUR OWN DASHBOARD FOR THE PROJECT DEMONSTRATES A NO SURPRISE HEADLINE FOR THIS BRIEFING
WE'RE RED OR LATE ON COMPLETING CONSTRUCTION RIGHT NOW, AND WE'RE YELLOW OR CAUTIOUS ON WATCHING COSTS DUE TO THE LONGER EXTENDED TIME IT'S TAKEN TO GET THIS JOB DONE AND ANY ASSOCIATED ISSUES
NEXT SLIDE
SLIDE TWO, COMMISSIONER BOWMAN
THANKS TO STEVE METRUCK FOR HAVING BEEN INVOLVED WITH BILL CALHOUN, THE VICE CHAIRMAN OF CLARK CONSTRUCTION
WE HAVE CONTINUING DISCUSSIONS GOING ON BETWEEN US AND WE'RE BOTH RALLIED TOWARD GETTING THIS PROJECT COMPLETED
AS EARLY AS THIS FRIDAY WE'LL HAVE MORE DISCUSSIONS ABOUT SOME CHALLENGES BETWEEN THE TEAMS, BUT WE'RE WORKING THROUGH THOSE
TODAY WE'RE GOING TO COVER LANDSIDE, THE MAIN BUILDING PIER SIDE, REGARDING THE GATE PROGRESS SCHEDULE COST LEAD
AND WE'RE GOING TO PROVIDE REMARKS BY OUR DESIGN-BUILDER THAT'D BE BRIAN AHERN AND POSSIBLY BRETT EARNEST
WE ALSO CONTINUE TO PROVIDE LEADERSHIP OPENINGS FOR OUR STAFF AND FOR THEM TO GET TO KNOW YOU AND YOU GET TO KNOW THEM
TODAY FOR THE FIRST TIME IN THESE PRESENTATIONS WE'LL BE INTRODUCING OUR RESIDENT ENGINEER, SARAH MITCHELL
BUT FIRST, I'LL TURN IT OVER TO TYLER AND TEAM MEMBERS, PLEASE MOVE THROUGH CRISPLY
THANK YOU
TYLER
TYLER, YOU APPEAR UNMUTED BUT WE CANNOT HEAR YOU
TYLER MAY NEED TO LEAVE THE MEETING AND RECONNECT
I WOULD SAY CHECK YOUR TEAM SETTINGS TO MAKE SURE THAT YOU'RE USING ALL THE CORRECT AUDIO AND MICROPHONE
FOR SPEED I'LL JUMP IN ON THE NEXT SLIDE UNTIL TYLER GETS ON BOARD
COMMISSIONERS THIS IS A PROGRESS PHOTOS
WITHIN THE MAIN BUILDING IN THE LOWER LEVEL OF THE BUILDING YOU SEE ON THE LEFT THE BAGGAGE SYSTEM IS MAKING GREAT HEADWAY
IN FACT, I THINK BY THE END OF NEXT WEEK THE TRANSPORTATION SECURITY ADMINISTRATION WILL HAVE CERTIFIED, KNOCK ON WOOD, THE ENTIRE SYSTEM READY FOR OPERATIONS
THE PICTURE ON THE RIGHT SHOWS THE UPPER LEVEL, WHICH IS THE CONCOURSE LEVEL
AND THIS SHOWS ON THE LEFT OF [INAUDIBLE] GATES PASSENGERS COMING IN INTERNATIONALLY AND NEEDING TO CATCH A DOMESTIC FLIGHT ACROSS THE COUNTRY AND YOU CAN SEE THE NICE FINISH WORK COMPLETED THERE
NEXT SLIDE
TYLER JUMP IN IF YOU'RE ONLINE YET
AGAIN PROGRESS PHOTOS IN THE MAIN IAF BUILDING
IN THE LEFT IS CUSTOMS BORDER PROTECTION AND THAT IS THEIR SECONDARY SCREENING AREA
AND YOU CAN SEE THE FINISH BEING COMPLETED AND IT'S VERY CLOSE
WE GO TO THE UPPER
RIGHT
WHAT WE SEE IS THE RECHECK TSA CHECKPOINT
SO FOR AN ARRIVING INTERNATIONAL TRAVELER, THEY WOULD MOVE CHECKPOINT AND THEN MOVE INTO THE EXISTING CONCOURSES TO GO TO EITHER ONE OF THE CONNECTING FLIGHTS AT ANY GATE
YOU CAN SEE SOME OF THE EQUIPMENT THAT WE HAVE PROVIDED AND THAT PROVIDED BY TSA
IN THE LOWER PICTURE THESE ARE THE UPPER LEVEL OFFICES THAT THE CBP HAS THEIR STAFF IN
AND THAT IS IN A VERY FINISHED STATE
CLARK IS JUST FINISHING UP SOME FINAL ITEMS NEXT SLIDE
THIS IS A BEFORE AND AFTER PICTURE THAT TYLER HAS
TYLER TAKE IT AWAY
OKAY, HOPEFULLY THE AUDIO IS WORKING A LITTLE BETTER NOW
WE CAN HEAR YOU TYLER
OH, YEAH, SORRY ABOUT THAT INCONVENIENCE
THE WEATHER IS CAUSING SOME CHAOS OVER HERE
ANYWAYS, THANK YOU, DAVE
HERE'S A PROGRESS PHOTO OF THE CONCOURSE LEVEL OF THE MAIN HALL OF THE IAF
ON THE LEFT-HAND PICTURE WE GOT ONE FROM JANUARY AND THEN THE RIGHT HAND SIDE WE HAVE SEPTEMBER
JANUARY'S LAST TIME THAT WE PRESENTED AN UPDATE TO COMMISSION
SO JUST WANTED TO OUTLINE A COUPLE NOTICEABLE DIFFERENCES
IN THE MIDDLE OF THE PICTURE YOU CAN SEE THAT WE HAD A WHOLE BUNCH OF MATERIAL STAGE THERE THAT HAS NOW BEEN INSTALLED
WE HAVE COLUMN COVERS INSTALLED
FLOORING HAS BEEN COMPLETED
AND EVEN YOU CAN SEE THE TEMPORARY LIGHTS THAT WERE HANGING DOWN IN THE JANUARY PICTURE HAVE NOW BEEN TURNED INTO PERMANENT LIGHTING
ANOTHER ASPECT OF THISM I DON'T KNOW IF THEY'VE COVERED IT IS THAT OUR BAGGAGE EQUIPMENT'S FULLY INSTALLED INCLUDING OUR CAROUSEL UNITS HERE
THE LAST LITTLE BIT OF WORK THAT WE HAVE IN THE GRAND HALL HERE IS TO FINISH THE CLAIM DECKS
I'D ALSO LIKE TO POINT OUT THAT IN THESE PICTURES THERE'S SMALL WHITE BEAMS THAT YOU CAN SEE ACROSS EACH CAROUSEL
THOSE ARE ART SUPPORTS
THE ART HAS BEEN PROCURED AND READY TO BE INSTALLED AT THE END OF THIS MONTH OR THE START OF NEXT MONTH
WITH THAT BEING SAID, I'D LIKE TO PASS IT ON TO MY COLLEAGUE SARAH MITCHELL TO TALK A LITTLE BIT MORE ABOUT THE AIR SIDE
THANK YOU, TYLER
CAN WE GO TO THE NEXT SLIDE? SO, MY NAME IS SARAH MITCHELL AND I AM THE RESIDENT ENGINEER FOR THE AIR SIDE OF THE IAF PROJECT
SO THE FIRST PICTURE YOU SEE HERE ON THE LEFT IS ACTUALLY INSIDE OF THE PEDESTRIAN WALKWAY
IT IS THE TOP OF THE BACK STAY CABLES, WHICH ARE LOCATED ON EITHER END OF THE PEDESTRIAN WALKWAY
THESE CABLES STRETCH ALL THE WAY TO THE GROUND AND IN ESSENCE ARE THE STRUCTURE THAT HOLD THE ENDS OF THE WALKWAY INTO PLACE
THESE CABLES WILL BE A MAJOR ARCHITECTURAL FEATURE OF THE PROJECT AND IN THEIR FINAL ASTHETIC WILL BE COVERED IN A PAINT WHICH IS A FIREPROOFING PAINT
IN THE RIGHT PICTURE YOU CAN SEE MORE OF THESE CABLES THAT ARE SURROUNDING OUR WALKWAY OR TRAVELATOR
THE SECTIONS OF THE MOVING WALKWAY HAVE ACTUALLY BEEN STORED IN THE CENTER SECTION OF THE SESSION WALKWAY SINCE WAY BACK WHEN IT WAS LOCATED AT CARGO TWO WHERE WE BUILT THIS INTERSECTION
BEFORE IT WAS TRANSPORTED AND LIFT IT INTO PLACE ABOVE OUR TAXILANE
RECENTLY THEY WERE UNWRAPPED AND LOWERED INTO THEIR FINAL CONFIGURATION
HOWEVER, THEY ARE STILL BEING WORKED ON AND TESTED SO THEY ARE NOT QUITE FUNCTIONING YET
IN THIS PICTURE
YOU CAN ALSO SEE THE PROGRESS THAT IS BEING MADE ON THE OVERHEAD ELECTRICAL AND MECHANICAL WORK IN THE PEDESTRIAN WALKWAY
NEXT SLIDE
THANK YOU
SO THESE ARE TWO PICTURES OF OUR EXTERIOR OF THE PEDESTRIAN WALKWAY
THE PICTURE ON THE LEFT SHOWS A VIEW FROM THE TOP OF THE BRIDGE CORE ON THE SOUTH SATELLITE SIDE LOOKING BACK TOWARDS A CONCOURSE
IN THIS VIEW YOU CAN ACTUALLY SEE THE CURVATURE OF THE WALKWAY, WHICH IS NOT NECESSARILY APPARENT WHEN YOU LOOK AT IT FROM THE GROUND OR FROM OUR TERMINALS
IT'S ACTUALLY WIDEST IN THE CENTER SECTION WHERE THE MOVING WALKWAY IS LOCATED AND THEN KIND OF BECOMES MORE SLENDER ON EITHER END
BOTH OF THESE PICTURES ARE SHOWING THE PROGRESS THAT IS HAPPENING ON THE CLADDING, ROOFING, AND FIREPROOFING ON THE EXTERIOR OF OUR WALKWAY
NEXT SLIDE
SO THE AIR SIDE OF THE PROJECT IS ACTUALLY SPLIT INTO TWO MAJOR COMPONENTS :THE PEDESTRIAN WALKWAY, WHICH WE'VE JUST REVIEWED AND THEN THE PODS AS WE CALL THEM
THE PODS ARE THE STRUCTURES ON THE RAMP SIDE OF A CONCOURSE WHICH ALLOW PASSENGERS EITHER TO PASS THROUGH FOR A DOMESTIC FLIGHT OR ROUTE UP AND OVER THE EXISTING A CONCOURSE INTO THE NEW IAF BUILDING
FOUR PODS EACH CONNECTING TWO OR THREE OF THE PASSENGER LOADING BRIDGES TO THE IAF
BECAUSE THESE PODS HAVE BEEN WORKED ON ONE AT A TIME DUE TO AIRLINE CONSTRAINS, YOU CAN SEE IN THE TWO PICTURES THE DRASTIC DIFFERENCE IS IN PROGRESS
SO THE PICTURE ON THE LEFT SHOWS THE INTERIOR PROGRESS SPECIFICALLY THE CARPET INSTALLATION THAT IS OCCURRING INSIDE OF PODS A AND B AND SOON-TO-BE C
WE WORKED ON THEM STARTING AT GATES A-SIX AND A-SEVEN AND A-EIGHT
WE WORKED ALL THE WAY TO THE SOUTH END
AND NOW WE ARE ACTUALLY WORKING ON POD D, WHICH IS FARTHER NORTH
SO IN THE SECOND PICTURE, WHICH IS ON THE RIGHT
THIS IS ACTUALLY ONE OF THE MOST EXCITING PORTIONS OF THE PROJECT TO ME THAT IS TAKING PLACE RIGHT NOW
THE FINAL STEEL OF THE ENTIRE PROJECT FINALLY IS BEING ERECTED AT POD D
ABOUT A WEEK AGO THE FINAL LARGE TRESSES WERE PUT IN PLACE THAT CONNECT TWO PODS A AND D
WE TOOK THE OPPORTUNITY WITH THE AIRLINE SLOWDOWNS DUE TO COVID TO WORK WITH OPERATIONS AND OUR AIRLINE PARTNERS TO CAPTURE AN EXTRA GATE AND ACCELERATE THIS WORK, WHICH HAS DIRECTLY OUR DESIGN-BUILDER
MAIN CHALLENGE ON THE AIR SIDE AS I MENTIONED BEFORE HAS BEEN THE LIMITED NUMBER OF AVAILABLE GATES
SO THIS IS OUR FOURTH POD, FOURTH CHANCE TO IMPROVE OUR STRATEGIES AND EFFICIENCIES AND THANKS TO THE COOPERATION OF THE AIRLINES AND OPERATIONS, IT IS NOW OUR LARGEST AIR SITE CONSTRUCTION AREA
THAT'S ALL I HAVE FOR MY AIR SITE UPDATE
SO I WILL HAND IT OVER TO BRIAN MARSHALL
THANK YOU GOOD AFTERNOON COMMISSIONERS AND EXECUTIVE DIRECTOR METRUCK
MY NAME IS BRIAN MARSHALL
I'M THE DEPUTY PROGRAM DIRECTOR RESPONSIBLE FOR THE LAND SIDE PORTION OF THE INTERNATIONAL ARRIVALS FACILITY
ON THIS SLIDE WE'LL BE DISCUSSING THE CURRENT STATUS OF OUR LEAD CERTIFICATION, WOMEN MINORITY AND SMALL BUSINESS ENTERPRISE PARTICIPATION, AND THE PROJECT COST INDICATORS
STARTING WITH LEAD
WE'RE ON TRACK FOR LEAD SILVER CERTIFICATION
WE HAVE 49 OF THE 50 REQUIRED POINTS HAVE BEEN CONFIRMED
TWO LIKELY POINTS WILL BE SUBMITTED AT THE COMPLETION OF CONSTRUCTION AND THREE ADDITIONAL COMMISSIONING POINTS ARE CURRENTLY UNDER REVIEW WITH A TEAM
IF YOU REQUIRE FURTHER INFORMATION ON THIS TOPIC, PLEASE REFER TO THE APPENDICES IN THE PRESENTATION
ON WOMEN MINORITY AND SMALL BUSINESS ENTERPRISE PARTITION, THE INFORMATION WE'RE DISPLAYING HERE IS EFFECTIVE AS OF THE END OF AUGUST 2020
THIS IS THE MOST CURRENT INFORMATION WE HAVE FOR THE PROJECT
WE'RE CURRENTLY REVIEWING THE INFORMATION FOR SEPTEMBER 30TH
TO DATE WE'VE PAID A HUNDRED AND THIRTY-ONE MILLION TO SMALL BUSINESSES
THIS REPRESENTS 9 MILLION DOLLARS OVER OUR TARGET OF A HUNDRED AND TWENTY TWO MILLION
AND WOMEN AND MINORITY BUSINESSES, WE PAID A HUNDRED AND FORTY-FOUR MILLION
AS YOU MAY BE AWARE AT THE TIME WE EXECUTED THE GMP THIS PROJECT DID NOT HAVE A TARGET FOR WOMEN AND MINORITY BUSINESS
THIS FOCUS WAS INTRODUCED TO THE PROJECT IN JANUARY OF 2019
RECENTLY THE PORT AND CLARK HAVE IDENTIFIED SOME DISCREPANCIES IN THE RECONCILING OF OUR TO REPORTING SYSTEMS THESE DISCREPANCIES ARE CURRENTLY UNDER REVIEW AND MAY AFFECT THE AMOUNT REPORTED FOR WOMEN AND MINORITY BUSINESS ENTERPRISE
APPRENTICE HOURS REPRESENT 21 PERCENT OF OUR TOTAL TRADE HOURS
THIS IS ON TRACK WITH OUR TARGET OF 21%
AGAIN FOR MORE DETAILED INFORMATION, PLEASE REFER TO THE APPENDICES
ONTO OUR COST INDICATORS
AGAIN, THE INFORMATION CONTAINED IN THIS SLIDE IS EFFECTIVE AS OF AUGUST 31ST 2020
AND AGAIN, WE ARE CURRENTLY IN REVIEW OF THE NUMBERS FOR SEPTEMBER
OF THE TOTAL PROGRAM BUDGET WE HAVE SPENT EIGHTY NINE PERCENT LEAVING A HUNDRED NINE MILLION DOLLARS TO COMPLETE
THAT'S A COMBINED TOTAL OF BOTH THE CLARK AND PORT CONTROLLED AMOUNTS
FOR PORT ALLOWANCE WE'VE ENCUMBERED 92% OF THE PORT ALLOWANCE LEAVING FOUR MILLION TO COMPLETE
ON MANAGEMENT RESERVE, THE MANAGEMENT RESERVE CARRIED BY THE PROJECT IS IN TWO COMPONENTS 13 MILLION DOLLARS OF MANAGEMENT RESERVE AND AN ADDITIONAL 10 MILLION OF EXECUTIVE DIRECTOR RESERVE TOTALING 23 MILLION
OF THIS TOTAL, WE'VE ENCUMBERED 34% WITH 15 MILLION DOLLARS REMAINING
AT THE BOTTOM OF THE SLIDE YOU'LL SEE DETAILS FOR THE EXECUTIVE DIRECTORS PORTION OF THE MANAGEMENT RESERVE
FOR THIS PORTION WE'VE COVERED 20% WITH 8 MILLION REMAINING
PLEASE REMEMBER THIS EIGHT MILLION DOLLARS IS A PORTION OF THE 15 MILLION REMAINING ON THE FULL MANAGEMENT RESERVE
OUR DESIGN BUILDERS ALLOWANCE IS FULLY ENCUMBERED AND THE RISK CONTINGENCY IS 87% ENCUMBERED WITH SIX MILLION DOLLARS REMAINING
AS I SAID, THIS INFORMATION IS EFFECTIVE AS OF AUGUST 31ST, 2020
THE PROJECT TEAM CONTINUES TO ENCUMBER THESE ALLOWANCES
IN ADDITION AS DAVE MENTIONED, PORTIONS OF THE PROJECT ARE LATE, UP TO NINE MONTHS LATE, AND THERE ARE ADDITIONAL COSTS ASSOCIATED WITH THIS DELAY
FOR THIS REASON, THE TOTAL PROGRAM BUDGET IS ON WATCH AS INDICATED BY THE YELLOW STOPLIGHT AT THE CENTER OF THE SLIDE
WE'VE RESERVED SOME TIME AT THE END OF THIS PRESENTATION FOR OUR DESIGN BUILD CONTRACTOR TO PROVIDE THEIR COMMENTS
NEXT SLIDE PLEASE
IN THIS SLIDE, WE'RE REVIEWING THE CURRENT STATUS OF OUR KEY PROJECT MILESTONES
THE INFORMATION AGAIN IN THIS SLIDE IS EFFECTIVE AS OF THE END OF AUGUST AND WE CURRENTLY ARE REVIEWING THE SEPTEMBER INFORMATION
BECAUSE OF DELAYS WITH VARIOUS ASPECTS OF THE PROJECT, WE'RE CURRENTLY PLANNING TO DELIVER THE IAF IN THREE PARTS
THE FIRST PART WILL BE THE MAIN IAF BUILDING AND GATE PODS A B AND C THESE PODS PROVIDING SIX INTERNATIONAL GATES ON THE A CONCOURSE
CURRENTLY CLARK ARE FORECASTING A SUBSTANTIAL COMPLETION IN LATE NOVEMBER 2020
THE PORT HAS RESERVED A TWO MONTH SCHEDULE CONTINGENCY BEFORE TURNING THE SPACE OVER TO THE OPERATIONAL READINESS TEAM IN LATE JANUARY
THE OPERATIONAL READINESS PROCESS WHICH YOU WILL HEAR MORE ABOUT SHORTLY IS SCHEDULED TO TAKE TWO MONTHS LEADING TO AN ESTIMATED PUBLIC OPENING DATE IN LATE APRIL 2021
SIMILARLY, THE PEDESTRIAN WALKWAY CLARK IS PROJECTING A SUBSTANTIAL COMPLETION DATE OF MARCH 2021 LEADING TO A PORT PUBLIC OPENING DATE IN LATE MAY 2021
AND IN POD D, THE PORT PUBLIC OPENING DATE IN JUNE 2021
WITH THAT I'D LIKE TO THANK THE COMMISSION AND TURN THE PRESENTATION OVER TO CHARLES WHO WILL TALK ABOUT THE OPERATIONAL READINESS PROCESS
NEXT SLIDE, THANK YOU BRIAN
GOOD AFTERNOON COMMISSIONERS, EXECUTIVE DIRECTOR
ACTIVATION, WHENEVER WE DO GET THE BUILDING, ACTIVATION'S GOING TO TAKE 60 DAYS
ESSENTIALLY IT'S WHEN THE HARD HATS COME OFF AND THE FRONT LINE STAFF GO IN
WE'VE BEEN TAKING THIS TIME PERIOD TO MAKE SURE THAT ALL OF OUR STAKEHOLDERS FROM THE FEDERAL AGENCIES SUCH AS CBP, TSA THAT OCCUPY THE BUILDING TO THE AIRLINES AND THE GROUND HANDLERS ARE GOING TO BE USING THE FACILITY ARE READY TO GO ONCE WE GET YOU ACTIVATION PERIOD
DOING THE ORIENTATIONS FOR FRONTLINE STAFF TO MAKE SURE THEY KNOW HOW TO GET IN AND OUT, TO GET TO THEIR WORK AREAS, TRAINING ON THE NEW EQUIPMENT THAT IS GOING TO BE IN THE IAF, AS WELL AS NEW POLICIES AND PROCEDURES
WILL DO OPERATIONAL TRIALS TO VALIDATE ANY FACILITY CONSTRAINTS AND THEN WE'LL DO IT ADVANCED INTEGRATED OPERATIONAL TRIALS WITH THE STAKEHOLDERS TO MAKE SURE THAT THEY FULLY UNDERSTAND
WHERE THEY'RE GOING AND WHAT THEY'RE USING INSIDE THE FACILITY
YOU'LL NOTICE THAT WE CROSSED OUT THE PASSENGER FLOW SIMULATION
UNFORTUNATELY DUE TO COVID-19 WE DO NOT FEEL THAT THAT'S ATTAINABLE
INSTEAD WE WILL DO A SOFT OPENING
SO THERE WILL BE A 60-DAY ACTIVATION PERIOD AND THEN THERE WILL BE A 21-DAY OR THREE WEEKS SOFT OPENING PERIOD IN WHICH WILL BE BRINGING IN SINGLE AND DOUBLE FLIGHTS INTO THE IAF OFF THE CONCOURSE A GATES
WE'LL DO DAILY AFTER ACTION REVIEWS WITH CBP, TSA AND THE AIRLINES TO MAKE SURE THAT WE KNOW EVERYTHING THAT'S WORKING AND WHAT'S NOT WORKING AND MAKE SURE THAT THEIR TRAINING IS STICKING AND THAT THE PROCESSES ARE MOVING THE WAY THEY'RE SUPPOSED TO
WILL CULMINATE WITH A NOON PEAK WHEN WE GET TOWARDS THE END OF THAT SOFT OPENING PERIOD AND THEN I ALSO WANT TO NOTE THAT WE ARE PLANNING, OUR EXTERNAL RELATIONS TEAM IS PLANNING THREE SEPARATE OPENING EVENTS
AND WE CAN GIVE A BRIEFING ABOUT THAT ANOTHER TIME
ONCE WE GET PAST THE SOFT OPENING, ONCE WE GET THROUGH THE SOFT OPENING AND WE'VE GOT CONFIDENCE IN HOW THE FACILITIES OPERATING ALL THE STAFF KNOW WHAT THEY'RE DOING, AND THE PEDESTRIAN WALKWAY IS AVAILABLE AND OPEN TO CONNECT THE SOUTH SATELLITE GATES, THEN WE'LL GET INTO THE HEART-OPENING
AN OVERNIGHT CUT OVER FROM THE SOUTH SATELLITE FIS INTO THE NEW INTERNATIONAL ARRIVALS FACILITY, A COMPLETE TRANSITION
THAT'S OUR ACTIVATION
THAT'S WHAT WE'RE PLANNING AND NOW I WILL TURN IT OVER TO BRIAN AHERN OF CLARK CONSTRUCTION
GOOD AFTERNOON, COMMISSIONERS EXECUTIVE DIRECTOR METRUCK
MY NAME IS BRIAN AHERN AND I AM VICE PRESIDENT WITH CLARK CONSTRUCTION LEADING OUR EFFORTS HERE ON THE IAF PROJECT
HAD THE PLEASURE OF PRESENTING TO THIS GROUP SEVERAL UPDATES OVER THE PAST TWO YEARS SINCE WE EXECUTED THE G&P AMENDMENT IN SEPTEMBER OF 2018, AND I'M GRATEFUL FOR THE OPPORTUNITY TO BE HERE AGAIN TO PRESENT ON THIS ICONIC PROJECT
AS YOU'VE SEEN FROM THE PHOTOGRAPHS AND FROM THE PORT PRESENTATION, THIS TEAMS MADE A TREMENDOUS AMOUNT OF PROGRESS IN THE CONSTRUCTION OF THE IAF PROJECT SINCE JANUARY 2020 WHEN WE WERE LAST HERE PRESENTING
SINCE THAT TIME WE'VE ACHIEVED SEVERAL CRITICAL AND VERY CHALLENGING MILESTONES
ONE OF THESE IS THE SUCCESSFUL ERECTION OF THE ICONIC PEDESTRIAN WALKWAY EARLIER THIS YEAR
I'M PROUD TO SAY THAT THE ACHIEVEMENT OF THESE CRITICAL MILESTONES WAS TRULY A TEAM EFFORT, BUT MOST IMPORTANTLY THAT WORK HAS PROGRESSED AND THOSE MILESTONES HAVE BEEN ACHIEVED SAFELY, WHICH IS ALWAYS BEEN A TOP PRIORITY ON THIS PROJECT HERE AS PART OF CLARK'S SAFETY COMMITMENT
AND WHILE OUR PROJECT HAS MADE SIGNIFICANT STRIDES ON SEVERAL FRONTS, I THINK IT'S VERY IMPORTANT THAT WE NOTE THAT THERE ARE SEVERAL KEY CHALLENGES REMAINING AS PART OF THIS PROJECT THAT WE STILL NEED TO RESOLVE
BACK IN JANUARY OF 2020 WE PRESENTED A KEY CHALLENGES SLIDE AND THAT NCLUDED SOME OF THE MAJOR CHALLENGE THAT ARE STILL UNRESOLVED TODAY WHICH IS THE RESOLUTION OF OWNER ALLOWANCE ITEMS INCLUDING THE CDP FACIAL RECOGNITION AND THE BAGGAGE HANDLING
AND THEN THE COORDINATION WITH THE FEDERAL AGENCIES AND THE PORT ACTIVATION PROCESS
ADDITIONALLY, THE PROJECT HAS EXPERIENCED SIGNIFICANT SCHEDULE AND CONSTRUCTION INEFFICIENCY IMPACTS AS IT RELATES TO COVID-19 WHICH ARE CURRENTLY STILL UNRESOLVED
BUT THE CLARK TEAM IS COMMITTED TO WORKING COLLABORATIVELY WITH THE PORT PARTNERS TO RESOLVE THESE MATTERS IN THE MOST EFFECTIVE AND EFFICIENT WAY POSSIBLE
WE LOOK FORWARD TO A SUCCESSFUL COMPLETION AND TURNOVER OF THE IAF FACILITY IN THE COMING MONTHS AND TO THE FACILITIES GRAND OPENING MENTIONED IN THE PRESENTATION IN 2021
AND I WANT TO TAKE THIS OPPORTUNITY TO AGAIN THANK BOTH THE COMMISSIONERS AND EXECUTIVE DIRECTOR METRUCK FOR YOUR CONTINUED SUPPORT OF THIS ICONIC PROJECT
THANK YOU
COMMISSIONERS, THAT CONCLUDES OUR BRIEFING
MR STEINBREUCK
WOULD YOU LIKE ME TO GO THROUGH THE ROLE FOR COMMENTS AND QUESTIONS? EXACTLY
THANK YOU
THANK YOU
BEGINNING WITH COMMISSIONER CHO CHO
UM, I APPRECIATE THE PRESENTATION
I DON'T THINK I HAVE ANY BURNING QUESTIONS AT THE MOMENT
THANK YOU
MOVING TO COMMISSIONER CALKINS
UST A QUICK COMMENT TO SAY THANKS TO OUR GUESTS FROM CLARK WHO PROVIDED COMMENTARY, BRIAN
I'M GOING TO MISS YOU ONCE WE'RE ALL DONE WITH THIS PROJECT [LAUGHTER] I'LL MISS YOU AS WELL
[LAUGHTER] I'LL BE AROUND
THANK YOU COMMISSIONER CALKINS MOVING TO COMMISSIONER BOWMAN
NO, I JUST APPRECIATE THE UPDATE
I KNOW WE'VE HAD A LOT OF CHALLENGES WITH THIS AND I HOPE TO BE AROUND WHEN IT OPENS
SO
EXCITING YEARS COMING AHEAD
THANK YOU
THANK YOU, AND THEN COMMISSIONER STEINBREUCK FOR YOUR COMMENTS
SURE
THANKS AND MY APPRECIATION TO ALL FOR CONTINUING TO DRIVE THIS PROJECT TOWARD A SUCCESSFUL COMPLETION
IT REALLY DOES TAKE INCREDIBLE TEAMWORK, COOPERATION, COLLABORATION, AND PARTNERSHIP AND I APPRECIATE THE GENUINE AND DETERMINED EFFORTS
HOPEFULLY WE WILL GET THE OUTSTANDING ISSUES RESOLVED WITHOUT TOO MUCH STRIFE AND STRUGGLE
THAT SAID I'D LIKE TO KNOW WHEN THE ACTUAL DAY OF OPENING OF PUBLIC OPENING IF WE HAVE A DATE CERTAIN FOR THE PUBLIC OPENING
WHAT DAY IS THAT? AND IS THERE ANYTHING REMAINING THAT COULD POTENTIALLY DELAY THAT DATE AND SCHEDULE THAT YOU SHARED WITH US? COMMISSIONER, GREAT QUESTION DAVE YOU OKAY WITH ME TAKING THIS? I'M LOOKING FOR DATE WE CAN ALL PUT ON OUR CALENDARS
SO I WISH I COULD GIVE YOU THAT DATE
UNFORTUNATELY, THERE JUST IS NOT ENOUGH CERTAINTY IN THE SCHEDULE OF WHEN THE FACILITY WILL BE TURNED OVER TO THE PORT AND WE CAN START ACTIVATION
SO THAT'S WHY WE'RE GIVING THE BROAD DATES OF APRIL/MAY OF NEXT YEAR
AS SOON AS WE DO KNOW THAT WE'RE TRYING TO GET THAT SETTLED THREE MONTHS IN ADVANCE TO MAKE SURE WE CAN GET IT ON EVERYBODY'S CALENDARS AND GET THEM RESERVED, YOUR TIME RESERVE
FAIR ENOUGH
WELL, I HAD TO ASK THE QUESTION
ABSOLUTELY
I WOULD EXPECT NOTHING ELSE
ALL RIGHT
WELL, VERY GOOD
THANKS AGAIN FOR THE UPDATE AND WE'LL GO FROM HERE
SO OKAY NEXT ITEM ON THE AGENDA
THANK YOU
I'D JUST LIKE TO MAKE AN OPENING COMMENT HERE BEFORE I HAND IT OFF TO MICHELLE AS THIS AS THE LEAD SPONSOR OF THIS REVIEW OF THE 2020 COMMISSION BY LAWS AND RULES OF PROCEDURE, OUR GOVERNING DOCUMENT FOR INTRODUCTION TO THE COMMISSION TODAY
I'VE MENTIONED ALREADY A LOT OF WORK AND EFFORT HAS GONE INTO THIS
IT'S SOMETHING THAT'S REQUIRED TO BE DONE EVERY THREE YEARS
THIS YEAR IS THE THIRD YEAR
I THINK WE INITIATED TO WORK LAST YEAR
I'VE REALLY PRESSED HARD TO HAVE OUR NEW CLERK WORK WITH EACH COMMISSIONER AND TO AND TO ALSO TO USE HER JUDGMENT AND PROFESSIONAL EXPERIENCE AS TO HOW WE CAN BEST CRAFT THE CHANGES TO THE BYLAWS, ALSO TO REVIEW AND SCRUB FOR LANGUAGE THAT MAYBE NOT RELEVANT OR MAYBE IN THE FORM OF BYLAWS NOT REALLY HELPFUL IN TERMS OF CLARITY
SO TO BRING GREATER CLARITY TO THE BYLAWS
AND OF COURSE, IT'S KIND OF IN A WAY IT'S A LIVING DOCUMENT
WE CAN ALWAYS MOVE TO SUSPEND THE RULES IF OCCASION DESERVES THAT THAT WASN'T ANTICIPATED OR JUSTIFICATION
SO I'D LIKE COMMISSIONERS TO THAT IN MIND ALSO THAT WHILE THESE ARE OUR SELF-GOVERNING SET OF RULES AND PROCEDURES
WE'RE NOT BOUND, YOU KNOW AND CHAINED TO FOLLOW IT'S EDICTS WITH THE PROVISION OF A TEMPORARY MOTION TO SUSPEND THE RULES WHICH CAN BE DONE AND HAS BEEN DONE
AS I MENTIONED ALSO, IT WAS MY INTENTION THAT THIS PACKAGE OF AMENDMENT BE BROUGHT BACK TO THE COMMISSION FOR A VOTE AT THE NEXT COMMISSION MEETING WHICH I BELIEVE IS OCTOBER 27TH, SO WE CAN COMPLETE THIS WORK AND MOVE ON
CLERK HART
THANK YOU COMMISSIONER STEINBREUCK
I APPRECIATE THAT INTRODUCTION
MEMBERS OF THE COMMISSION
I REALLY NEED TO TURN TO YOU TODAY TO ASK YOU WHAT YOUR PLEASURE IS
WE DO NOT HAVE TIME TO GET THROUGH THIS PRESENTATION
THE PRESENTATION ITSELF IS ONLY ABOUT 7 MINUTES LONG, BUT THAT BEING SAID WE'LL HAVE QUESTIONS AND WE WOULD LIKE TO GET YOU A BREAK BEFORE YOUR 3:45
AS I NOTED EARLIER, I HAVE MET WITH ALL COMMISSIONERS INDIVIDUALLY AND HAVE BRIEFED THEM ON THE CONTENTS OF THE AMENDMENT PACKAGE
IF COMMISSIONERS ARE AMICABLE, WE CAN GO AHEAD AND MOVE THE INTRODUCTION, SET THE MEETING FOR THE SECOND READING AT WHICH TIME I CAN COLLECT QUESTIONS AND COMMENTS FROM COMMISSIONERS OVER THE COURSE OF THAT PERIOD
AND I WOULD COMMIT TO ACTUALLY BOILING THAT ALL DOWN INTO ONE DOCUMENT THAT I WOULD SHARE OUT WITH ALL COMMISSIONERS WITH RESPECT TO ANSWERS TO THOSE QUESTIONS
I DO UNDERSTAND THAT THERE MAY BE A COUPLE OF AMENDMENTS THAT I'M ALREADY HEARING THAT MAY COME FORWARD AT THE TIME OF ACTION
COMMISSIONER STEINBREUCK, HOW WOULD YOU LIKE TO PROCEED? WOULD YOU LIKE TO GET THE MOTION ON THE FLOOR FOR INTRODUCTION? COMMISSIONER STEINBREUCK
ARE YOU ABLE TO HEAR ME? IS COMMISSIONER STEINBREUCK FROZEN? OR? I THINK HE MIGHT BE
YEAH, I THINK WE MIGHT HAVE AN ISSUE WITH CONNECTIVITY WHICH HAS BEEN HAPPENING ALL DAY
SO UNLESS WE CAN GET HIM BACK, IS THERE ANY COMMISSIONER WHO WOULD LIKE TO MAKE A MOTION TO INTRODUCE THIS AMENDMENT PACKAGE AND SCHEDULE IT FOR A MEETING? I THINK SAM IS THE CHAIR RIGHT NOW
DOESN'T USUALLY HAPPEN
IT'S NOT ABOUT THE BYLAWS MICHELLE, RIGHT? I WOULD CERTAINLY MOVE TO PUT IT ON THE FLOOR FOR THE FIRST READING SO THAT WE CAN CONTINUE TO HAVE THE CONVERSATION OVER THE COURSE OF THE NEXT COUPLE OF WEEKS AND THEN HOPEFULLY OF THE SECOND READING AND PASSAGE AND KNOWING THAT WE CAN INTRODUCE AMENDMENTS IN THE INTERIM TOO
IT'S BEEN MOVED
IS THERE A SECOND? I'LL SECOND
THANK YOU
SO IT'S BEEN MOVED AND SECONDED
AND THAT MOTION IS TO INTRODUCE RESOLUTION THREE SEVEN SEVEN EIGHT AND TO SET IT FOR ITS SECOND READING
CAN WE HAVE A DATE ON THE SECOND READING PLEASE? MAY I MAKE A COMMENT BEFORE WE DO THAT? YES, OF COURSE
SORRY
I DIDN'T GET A CHANCE TO RAISE MY
APOLOGIES
I JUST WANTED TO ASK BEFORE AS WE SET THE DATE
FIRST OF ALL, I WANT TO COMPLIMENT IT COMMISSIONER STEINBREUCK ON HIS LEADERSHIP IN PUSHING THIS FORWARD
IT'S AN ARDUOUS TASK TO SAY THE LEAST AND YOU'VE JUST REALLY DONE A TREMENDOUS JOB IN GOING THROUGH THE BYLAWS WITH A FINE-TOOTH COMB AND I VERY MUCH APPRECIATE YOU PUSHING THIS THIS YEAR AND MICHELLE, YOU'VE JUST DONE AN AMAZING JOB AND REALLY SHOWN A LOT OF LEADERSHIP AND GETTING US TO WHERE WE ARE
I WOULD ASK MY COLLEAGUES TO CONSIDER IF THEY MIGHT WANT TO MOVE THE FINAL PASSAGE TO LATER IN NOVEMBER OR THE FIRST WEEK IN DECEMBER IF WE HAVE TO HAVE A DATE CERTAIN RIGHT NOW JUST GIVEN WHAT WE EXPERIENCED TODAY AND WHAT WE'RE GOING TO EXPERIENCE WITH OUR NEXT COMMISSION MEETING WITH BUDGET GOING LONGER THAN WE ANTICIPATED
SO JUST HAVING BEEN AROUND FOR A WHILE, I KNOW THAT THESE MEETINGS GET ARE PRETTY LONG IN OCTOBER AND THE FIRST WEEK OF NOVEMBER
BUT THIS IS CRITICAL WORK
I DON'T WANT IT TO BE SEEN AS THOUGH I'M TRYING TO DELAY ANYTHING
JUST TRYING TO BE COGNIZANT OF WHAT THE SCHEDULE LOOKS LIKE
WELL, I'LL RESPOND TO THAT AND THANK YOU FOR YOUR WORDS OF SUPPORT COMMISSIONER BOWMAN
I WOULD PREFER THAT WE BRING THIS TO A VOTE AS SOON AS POSSIBLE
THERE'S BEEN CONSIDERABLE AMOUNT OF WORK, VETTING, OPPORTUNITY FOR COMMISSIONER REVIEW FOR CONTRIBUTIONS AND CHANGES TO THE LANGUAGE AND THERE'S AN OLD SAYING IN POLITICS WHEN YOU HAVE THE VOTES YOU HAVE TO MOVE TO CALL THE VOTE AND I THINK WE HAVE REACHED A LEVEL OF, OF SIGNIFICANT LEVEL OF CONSENSUS AMONGST COMMISSIONERS WITH THE PARTICIPATION THAT HAS BEEN UNDERTAKEN HERE
I DON'T THINK IT WILL REQUIRE A GREAT DEAL OF TIME IN THE NEXT COMMISSION MEETING
SO ON THE OTHER HAND TO DELAY TO NOVEMBER OR DECEMBER CONCERNS ME BECAUSE THINGS COULD START TO UNRAVEL THEN PEOPLE MAY COME UP WITH NEW PROPOSED CHANGES THAT COULD POTENTIALLY DELAY THIS FURTHER IF THERE'S DISAGREEMENTS OVER THOSE CHANGES
SO I WOULD PREFER THAT WE STICK TO THE SCHEDULE AND SCHEDULE THIS FOR THE NEXT MEETING, REGULAR MEETING OF THE COMMISSION, WHICH IS OCTOBER 27TH
WOULD YOU LIKE ME TO GO THROUGH A ROLE FOR? OKAY, AND ACTUALLY WE ARE ADMINISTRATIVELY SCHEDULED FOR 10/27 RIGHT NOW
I JUST WANT TO MAKE THAT CLEAR
SO THIS WOULD CHANGE THAT DATE
COMMISSIONER CHO, QUESTIONS OR COMMENTS ON THAT ON THE DATE CHANGE? NOPE
THANK YOU
COMMISSIONER CALKINS
DO YOU HAVE A PREFERENCE FOR THE 27TH OR AT A LATER TIME? I THINK THE 27TH IS MY PREFERENCE
COMMISSIONER BOWMAN
I KNOW I'M HEARING NOVEMBER OR DECEMBER TIMELINE? COMMISSIONER STEINBREUCK
I KNOW THAT YOU WANT TO CARRY FORWARD WITH THE 27TH
COMMISSIONER CHO DOESN'T HAVE A FEELING ONE WAY OR THE OTHER IT SOUNDED LIKE
I HAVE TWO MEMBERS WITH A YES ON 10/27, COMMISSIONER FELLEMAN ABSENT FROM THIS CONVERSATION
COMMISSIONER STEINBREUCK? COMMISSION PRESIDENT SETS THE AGENDA SO THAT'S MY AGENDA UNLESS THERE'S A MOTION TO CHANGE THE AGENDA
SO THAT'S WHERE I STAND ON THIS
OKAY, SO WE HAVE A MOTION ON THE FLOOR
IT HAS BEEN MOVED AND SECONDED TO INTRODUCE RESOLUTION THREE 778 TO SET IT FOR ACTION ON 10/27
ALL RIGHT
WOULD YOU LIKE TO MOVE TO A ROLL CALL VOTE COMMISSIONER STEINBREUCK? DO WE NEED TO TAKE A VOTE ON THIS NOW? YES, WE DO
IT'S FOR INTRODUCTION
YES
LET'S DO THE ROLL CALL
OKAY AND BEGINNING WITH COMMISSIONER CHO
AYE
THANK YOU
COMMISSIONER CALKINS
AYE
THANK YOU
COMMISSIONER BOWMAN
AYE
THANK YOU
COMMISSIONER STEINBREUCK
YES
THANK YOU
YOU HAVE FOUR YESES AND 0 NO FOR INTRODUCTION OF THIS ITEM AND IT WILL COME BACK TO YOU FOR A SECOND READING ON OCTOBER 27TH
VERY GOOD
WE CAN MOVE ON AGENDA ITEM 10 QUESTIONS OR REFERRALS TO COMMITTEE
I DON'T KNOW OF ANY
ANY FINAL COMMENTS BY COMMISSIONERS? COMMISSIONER CHO, ANY CLOSING COMMENTS FOR THIS MEETING TODAY? SORRY, NO I DON'T
SORRY
THANK YOU
COMMISSIONER CALKINS? NONE FOR ME
THANK YOU
COMMISSIONER BOWMAN
NO, I BELIEVE WE HAVE EXECUTIVE SESSION STARTING IN FIVE MINUTES
WE DO, STEINBREUCK? IF YOU WANT TO GO AHEAD AND ADJOURN THIS MEETING WE CAN GET GOING
LET'S GIVE COMMISSIONERS BACK 5 MINUTES AND ADJOURN THE MEETING AT THIS TIME
THE MEETING OF THE SEATTLE PORT COMMISSION IS ADJOURNED AT 3:40 P.M
THANK YOU COMMISSIONER.

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