The Special Meeting meeting scheduled for 2023-03-14 at Pier 69

Transcript

The Special Meeting meeting scheduled for 2023-03-14 at Pier 69

UM, THIS IS COMMISSION PRESIDENT SAM CHO CONVENING
THE SPECIAL MEETING OF MARCH TIME IS 10:00 A.M.
WE'RE MEETING IN PERSON TODAY AT THE PORT OF SEATTLE HEADQUARTERS BUILDING AT PIER 69 AND VIRTUALLY VIA MICROSOFT TEAMS PRESENT WITH ME TODAY ARE COMMISSIONERS CALKINS, FELLEMAN, HASEGAWA AND MOHAMMED, WHO ARE CURRENTLY GATHERED IN THE EXECUTIVE SESSION ROOM AWAITING THE OPENING OF THE PUBLIC MEETING
WE'LL NOW RECESS INTO EXECUTIVE SESSION TO DISCUSS ONE ITEM REGARDING LITIGATION AND OR POTENTIAL AVIATION OR LEGAL RISK PER RCW 42.30.110, SUB ONE, SUB I FOR APPROXIMATELY 55 MINUTES
AND TWO ITEMS RELATE TO THE PERFORMANCE OF PUBLIC EMPLOYEES, PIER RCW 42.30.110, SUB ONE, SUB G
AND WE'LL RECONVENE INTO PUBLIC SESSION AT NOON
THANK YOU SO MUCH
THANK YOU
AND I JUST WANT TO NOTE MY ERROR THAT SECOND SET OF PERFORMANCE OF PUBLIC EMPLOYEES WILL LAST 60 MINUTES IN TOTAL
SO I NEGLECTED TO ADD THAT THERE
AND WE ARE IN RECESS
THANK YOU
THIS IS COMMISSION PRESIDENT SAM CHO RECONVENING THE SPECIAL MEETING OF MARCH 14, 2023
THE TIME IS 12:11 P.M.
WE'RE MEETING IN PERSON DAY AT THE PORT OF SEATTLE HEADQUARTERS BUILDING COMMISSION CHAMBERS AND VIRTUALLY VIA MICROSOFT TEAMS CLERK HART, PLEASE CALL THE ROLL OF ALL COMMISSIONERS IN ATTENDANCE
THANK YOU
MR COMMISSION PRESIDENT, BEGINNING WITH COMMISSIONER FELLEMAN
PRESENT
THANK YOU
COMMISSIONER HASAGAWA
PRESENT
THANK YOU
COMMISSIONER MOHAMMED
PRESENT
THANK YOU
COMMISSIONER CALKINS
HERE
THANK YOU
AND COMMISSIONER CHO
PRESENT
THANK YOU
WE DO HAVE A QUORUM
EXCELLENT
A FEW HOUSEKEEPING ITEMS BEFORE WE BEGIN TODAY
FOR EVERYONE IN THE MEETING ROOM, PLEASE TURN OFF YOUR CELL PHONES TO SILENT
FOR ANYONE PARTICIPATING ON THE TEAM, PLEASE MUTE YOUR SPEAKERS
WHEN NOT ACTIVELY SPEAKING OR PRESENTING, PLEASE KEEP YOUR CAMERAS OFF UNLESS YOU ARE A MEMBER OF THE COMMISSIONER OR EXECUTIVE DIRECTOR PARTICIPATING VIRTUALLY, OR YOU ARE A MEMBER OF STAFF IN A PRESENTATION AND OR ACTIVELY ADDRESSING THE COMMISSION
MEMBERS OF THE PUBLIC ADDRESSING THE COMMISSION DURING PUBLIC COMMENT MAY TURN ON THEIR CAMERAS WHEN THEIR NAME IS CALLED TO SPEAK AND WILL TURN THEM BACK OFF AT THE CONCLUSION OF THEIR REMARKS
FOR ANYONE AT THE DAIS HERE TODAY, PLEASE TURN OFF THE SPEAKERS ON ANY COMPUTERS AND SILENCE YOUR DEVICES
PLEASE ALSO REMEMBER TO ADDRESS YOUR REQUESTS TO BE RECOGNIZED, TO SPEAK THROUGH THE CHAIR, AND TO WAIT TO SPEAK UNTIL YOU HAVE BEEN RECOGNIZED
YOU'LL TURN YOUR MICROPHONE ON AND OFF AS NEEDED
ALL THE ITEMS NOTED HERE WILL ENSURE A SMOOTHER MEETING, SO I THANK YOU IN ADVANCE
ALL VOTES TODAY WILL BE TAKEN IN THE ROLL CALL METHOD, SO IT IS CLEAR FOR ANYONE PARTICIPATING VIRTUALLY HOW THE VOTES ARE CASTE COMMISSIONERS WILL SAY AYE OR NAYS WHEN THEIR NAME IS CALLED
WE ARE MEETING ON THE ANCESTRAL LANDS AND WATERS OF THE COAST SALISH PEOPLE, WITH WHOM WE SHARE A COMMITMENT TO STEWARD THESE NATURAL RESOURCES FOR FUTURE GENERATIONS
THIS MEETING IS BEING DIGITALLY RECORDED AND MAY BE VIEWED OR HEARD AT ANY TIME ON THE PORT'S WEBSITE AND MAY BE REBROADCAST BY KING COUNTY TELEVISION
PLEASE STAND OR JOIN US FOR THE PLEDGE OF ALLEGIANCE [THE PLEDGE OF ALLEGENCE IS RECITED] ALL RIGHT, THANK YOU
SORRY
THE FIRST ITEM TODAY WILL BE THE APPROVAL OF THE AGENDA
AS A REMINDER, IF A COMMISSIONER WISHES TO COMMENT FOR OR AGAINST AN ITEM ON THE CONSENT AGENDA, IT IS NOT NECESSARY TO PULL THE ITEM FROM THE CONSENT AGENDA
RATHER, A COMMISSIONER MAY OFFER SUPPORTING OR OPPOSING COMMENTS ONCE THE MOTION TO APPROVE THE CONSENT AGENDA IS ON THE FLOOR AND BEFORE THE VOTE IS TAKEN
HOWEVER, IF A COMMISSIONER WANTS TO ASK QUESTIONS OF STAFF OR WISHES TO HAVE A DIALOGUE ON THE CONSENT AGENDA ITEM, IT IS APPROPRIATE TO REQUEST THE ITEM TO BE PULLED OFF FOR SEPARATE DISCUSSION
ARE THERE ANY ITEMS TO BE PULLED FROM THE CONSENT AGENDA OR ANY MOTIONS TO REARRANGE THE ORDERS OF THE DAY? MR CHAIR, I'D LIKE TO PULL ITEM NUMBER FOUR A, ANNUAL EXECUTIVE DIRECTOR PERFORMANCE REVIEW FROM THE AGENDA
THANK YOU
COMMISSIONER HASAGAWA
DO I HAVE A SECOND TO PULL FOUR A? THANK YOU
I HAVE A MOTION AND A SECOND TO PULL FOUR A FROM THE AGENDA, WHICH IS THE ANNUAL EXECUTIVE DIRECTOR PERFORMANCE REVIEW
WE WILL BE RESCHEDULING THIS TO ANOTHER WEEK
ALL RIGHT
THE QUESTION, COMMISSIONERS, IS NOW THE QUESTION ON THE APPROVAL OF THE AGENDA
IS THERE A MOTION TO APPROVE THE AGENDA AS PRESENTED AS AMENDED? EXCUSE ME
MOTION HAS BEEN MADE AND SECONDED
IS THERE ANY OBJECTIONS TO APPROVAL AGENDA? I'M SORRY? HEARING
YEAH
OKAY
I DON'T THINK WE NEED TO DO A ROLL CALL
I'M JUST ASKING FOR IT
MR COMMISSION PRESIDENT
YOU CAN DO THAT
BY GENERAL CONSENT IS FINE
OKAY, GREAT
ARE THERE ANY OBJECTIONS TO THE APPROVAL OF THE AGENDA AS AMENDED? HEARING NONE
THE AGENDA IS APPROVED AS AMENDED
THANK YOU VERY MUCH
ALL RIGHT, COMMISSIONERS, WE DO HAVE OH, WE DON'T HAVE A SPECIAL ORDER ANYMORE BECAUSE WE JUST PULLED THAT AGENDA
TOP OF NINE
THANK YOU
NEXT ON OUR AGENDA IS THE EXECUTIVE DIRECTOR'S REPORT
EXECUTIVE METRUCK, YOU HAVE THE FLOOR
GOOD AFTERNOON, COMMISSIONERS
I'D LIKE TO BEGIN WITH MY REMARKS BY WISHING EVERYONE A HAPPY WOMEN'S HISTORY MONTH
EVERY MARCH, WE TAKE TIME TO STUDY, COMMEMORATE AND CELEBRATE THE VITAL ROLE OF WOMEN IN THE UNITED STATES HISTORY
DURING THE DURING MARCH, THE PORT'S WOMEN'S INITIATIVE NETWORK, OR WIN, IS HOSTING EVENTS INCLUDING CELEBRATING WOMEN LEADERS ACROSS THE PORT ON MARCH 16 IN OUR WOMEN OUTSTANDING ACHIEVEMENT AWARDS FOR THE YEAR IN MARCH 29
ENCOURAGE EVERYONE TO ATTEND THOSE EVENTS
SOME OTHER NOTABLE UPCOMING PORT EVENTS INCLUDE TOMORROW'S SOUTH SEATTLE COMMUNITY MULTIAGENCY FORUM
OVER THE COURSE OF THE PAST FEW YEARS, WE HAVE RECEIVED SEVERAL LETTERS FROM COMMUNITY ORGANIZATIONS WHO CONCERNS REQUIRE THE COORDINATION OF PARTICIPATION OF ALL RELEVANT GOVERNMENT ENTITIES WITH JURISDICTION OVER THE KEY ISSUES THAT HAVE BEEN RAISED, LIKE THE ROLE THE PORT PLAYS ON MANY OTHER ISSUES
WE ARE TAKING THE INITIATIVE AND ACTING AS THE CONVENER OF THIS MEETING BY COORDINATING WITH OUR STAKEHOLDERS TO IDENTIFY SHARED GOALS AND DESIRED OUTCOMES
THIS IS MADE POSSIBLE DUE TO YOUR LEADERSHIP AND WILL CONVENE MULTIPLE GOVERNMENT AGENCIES, PRIVATE SECTOR PARTNERS AND REPRESENTATION FROM MANY ELECTED OFFICES TO HEAR QUESTIONS AND CONCERNS REGARDING NOISE, EMISSIONS, HEALTH AND QUALITY OF LIFE
KEY PARTICIPANTS INCLUDE THE CITY OF SEATTLE'S, DEPARTMENT OF NEIGHBORHOODS, KING COUNTY INTERNATIONAL AIRPORT, PUTS SOUND CLEAN AIR AGENCY, THE GOVERNOR'S OFFICE, THE KING COUNTY EXECUTIVE'S OFFICE, THE SEATTLE MAYOR'S OFFICE AND STAFF FROM FOUR CONGRESSIONAL OFFICES
WE HOPE THAT THIS IS A STARTING POINT FOR BROADER ENGAGEMENT AND UNDERSTANDING AROUND PUBLIC AGENCY ACTIONS AND HOW THEY IMPACT AND ALIGN WITH SOUTH SEATTLE COMMUNITIES
THANKS TO THE COMMISSIONER HASAGAWA AND COMMISSIONER FELLEMAN FOR PLANNING TO ATTEND THE EVENT TOMORROW
AN ANNUAL EVENT HAPPENING THIS WEEKEND IS THE BLESSING OF THE FLEET, WHICH WILL BE HELD AT FISHERMAN'S TERMINAL THIS COMING SUNDAY AT 1:00 P.M.
PRESENTED BY THE BALLARD FIRST LUTHERAN CHURCH, THE EVENT IS INTENDED AS A CELEBRATION OF HOPE FOR A GOOD AND SAFE UPCOMING FISHING SEASON THIS YEAR
THE BOAT THAT THE BLESSING WILL BE BLESSING REPRESENTING THE FLEET IS THE SILVERWARE, A 58 FOOT PURSANER HOME PORTED AT FISHERMAN'S TERMINAL
IT'S GREAT TO THINK ABOUT THE SAFETY AND WELL BEING OF THOSE THAT BRAVE THE SEAS TO PUT FOOD ON OUR TABLES
HOPE EVERYONE CAN ATTEND THAT EVENT AS WELL
I WOULD ALSO LIKE TO EXTEND MY CONGRATULATIONS AGAIN TO THE ACCOUNTING AND FINANCIAL REPORTING DEPARTMENT HERE AT THE PORT ON THE NEWS THAT THE PORT HAS RECEIVED THE CERTIFICATION OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING FROM THE GOVERNMENT FINANCE OFFICERS ASSOCIATION, GFOA, THE UNITED STATES AND CANADA
AS STATED IN THE GFOA AWARD NOTIFICATION, THIS CERTIFICATION IS THE HIGHEST FORM OF RECOGNITION IN THE AREA OF GOVERNMENT ACCOUNTING AND FINANCIAL REPORTING, AND ITS ATTAINMENT REPRESENTS A SIGNIFICANT ACHIEVEMENT BY A GOVERNMENT IN ITS MANAGEMENT
THIS IS NOW THE 17TH CONSECUTIVE YEAR THAT THE PORT HAS EARNED THIS RECOGNITION
ALONG WITH THIS PRESTIGIOUS ACKNOWLEDGMENT, THE GFOA AWARD OF FINANCIAL REPORTING ACHIEVEMENT WAS SEPARATELY GIVEN TO THE AFR DEPARTMENT
SO CONGRATULATIONS TO THE ENTIRE AFR TEAM MOVING TO TODAY'S COMMISSIONER MEETING, I'D LIKE TO HIGHLIGHT A FEW ITEMS ON OUR CONSENT AGENDA TODAY
WE HAVE SEVERAL ITEMS RELATED TO ENHANCING BOTH PHYSICAL AND CYBERSECURITY AT OUR FACILITIES, AS WELL AS OUR RESILIENCY FROM RENEWING OUR BADGING SYSTEM, TO IMPROVING OUR NETWORK FIREWALL, TO INCREASING THE CAPACITY OF OUR COMMUNICATION INFRASTRUCTURE AT THE AIRPORT
THESE ITEMS MAY NOT GET THE HEADLINES, BUT THEY ARE ALSO KEY TO OUR ABILITY TO CONTINUE TO OPERATE OUR FACILITIES IN A SAFE, EFFICIENT AND RELIABLE MANNER
YOU'LL ALSO HEAR ABOUT OUR 2022 FINANCIAL PERFORMANCE, WHICH IS NOT ONLY A CHANCE TO REFLECT ON THE SUCCESSES AND CHALLENGES FROM THE PAST YEAR, BUT WILL ALSO LAY THE GROUNDWORK AS WE GO INTO BUSINESS PLANNING FOR OUR 2024 BUDGET
I'LL HAVE MORE TO SAY ABOUT THAT ITEM DURING ITS INTRODUCTION
COMMISSIONERS, THIS CONCLUDES MY REMARKS THIS AFTERNOON
THANK YOU
THANK YOU
FOR THAT REPORT
EXECUTIVE DIRECTOR METRUCK
WE ARE NOW GOING TO MOVE ON TO COMMITTEE REPORTS
ERICA CHUNG, COMMISSIONER STRATEGIC ADVISOR WILL PROVIDE THE REPORT
ERICA
GREAT
GOOD AFTERNOON, PRESIDENT CHO AND COMMISSIONERS
I HAVE FOUR COMMITTEE AND ONE ADVISORY COMMITTEE REPORT FOR YOU TODAY
THE SUSTAINABILITY, ENVIRONMENT AND CLIMATE COMMITTEE CONVENED BY COMMISSIONERS HASEGAWA FELLEMAN MET ON FEBRUARY 21, WHERE THEY WERE BRIEFED ON PROPOSED TREE AND FOREST MANAGEMENT PRINCIPLES, INCLUDING EXISTING PROGRAMS AND GAPS
COMMISSIONERS DISCUSSED HOW BEST TO BEST TO MEASURE WHAT FOR BENCHMARKING AND CONSISTENCY
COMMISSIONERS ALSO DISCUSSED MAINTENANCE STRATEGIES FOR OVERALL FORESTS AND HABITAT
HEALTH COMMITTEE ALSO RECEIVED A BRIEFING ON SCA GATEWAY NORTH MAIN TERMINAL REDEVELOPMENT PROGRAM, WHERE COMMISSIONERS RECEIVED AN OVERVIEW OF THE PROJECT SUSTAINABLE EVALUATION FRAMEWORK ANALYSIS AND RECOMMENDATIONS ON NEXT STEPS
PORT WIDE ARTS AND CULTURE BOARD MET ON FEBRUARY 21 WITH COMMISSIONER FELLEMAN AND CHO PARTICIPATING WITH SEVERAL NEW MEMBERS JOINING THE BOARD
MEMBERS WERE BRIEFED ON THE PURVIEW AND ROLE OF THE BOARD
THE BOARD RECEIVED AN UPDATE FROM SENIOR ART PROGRAM MANAGER ON PROJECTED CAPITAL IMPROVEMENT PROJECT SPENDING ON ART PROJECTS, AND THE BOARD DISCUSSED THE 2023 WORK PLAN
ON THURSDAY, MARCH 2, DEPUTY MAYOR NAGUSI LED THE FIRST JOINT ADVISORY COMMITTEE MEETING ON 2023
COMMISSIONER FELLEMAN AND MOHAMMED WERE IN ATTENDANCE
AGENDA COVERED UPDATES REGARDING HOW THE INTERLOCAL AGREEMENT IS WORKING, AN UPDATE ON THE MUNICIPAL COURT ILA BETWEEN THE PORT AND SEATAC, A 2023 LEGISLATIVE SESSION UPDATE AND CONTINUED DISCUSSION REGARDING NORTH SEATAC PARK
COMMISSIONERS FELLEMAN AND CALKINS CONVENED THE WATERFRONT AND INDUSTRIAL LANDS COMMITTEE ON MARCH 8
DURING THE MEETING, THEY RECEIVED A PRESENTATION ON REAL ESTATE NEAR THE NORTH HARBOR AND PROVIDED DIRECTIONS TO STAFF
ON MARCH 2, COMMISSIONERS HASAGAWA AND CALKINS CONVENED THE EQUITY AND WORKFORCE DEVELOPMENT COMMITTEE
COMMISSIONERS WERE JOINED BY ECONOMIC DEVELOPMENT DIVISION STAFF AND CONSULTANTS FROM INTELLIGENT PARTNERSHIP WHO DELIVERED A PRESENTATION ON THE PORT'S WMBE ANALYSIS
THIS PRESENTATION CONSISTED OF A PRELIMINARY REVIEW OF THE BARRIERS FACED BY WMBE BUSINESSES AND WORKING WITH THE PORT, AND SOME SUGGESTED OPTIONS FOR LOWERING THESE BARRIERS
COMMISSIONERS NOTED THE SCALE OF THE CHALLENGES PRESENTED IN THE ANALYSIS AND THE NEED TO THINK CREATIVELY AND STRATEGICALLY TO ADDRESS THESE BARRIERS
STAFF ARE STILL WORKING TO FINALIZE THE ANALYSIS AND WILL DISTRIBUTE TO COMMISSIONERS WHEN THEY'RE DONE
THIS CONCLUDES MY REPORT
THANK YOU
EXCELLENT
THANK YOU, ERICA, FOR THAT REPORT
ARE THERE ANY FOLLOW UP QUESTIONS REGARDING COMMITTEES FROM OUR COMMISSIONERS? IF SO, PLEASE INDICATE IF YOU WOULD LIKE TO SPEAK
SEEING NONE, WE'LL MOVE ON TO THE NEXT AGENDA
THANK YOU, ERICA
ALL RIGHT, WE ARE MOVING ON TO ITEM SEVEN, WHICH IS PUBLIC COMMENT ON OUR AGENDA
THE PORT COMMISSION WELCOMES PUBLIC COMMENT AS AN IMPORTANT PART OF THE PUBLIC PROCESS
COMMENTS ARE RECEIVED AND CONSIDERED BY THE COMMISSIONER IN ITS DELIBERATIONS
SORRY, THAT'S LOUD
I'LL TURN IT DOWN
SORRY
HOT MIC
SHE'S GOT IT
BEFORE WE TAKE THE PUBLIC COMMENT, I WANT TO REVIEW OUR RULES FOR IN PERSON VIRTUAL PUBLIC COMMENT
EACH COMMENTATOR WILL HAVE TWO MINUTES TO SPEAK AND SHOULD STAY WITHIN THE ALLOTTED TIME
A TIMER WILL BE ON THE SCREEN AND A BUZZARD WILL SOUND AT THE END OF THE TWO MINUTE PERIOD
FOR EACH SPEAKER, YOU MUST LIMIT REMARKS TO TOPICS RELATED TO THE CONDUCT OF POOR BUSINESS
THESE RULES APPLY TO INTRODUCTORY AND CONCLUDING REMARKS
ALL REMARKS SHOULD BE ADDRESSED TO THE COMMISSION AS A BODY, NOT TO INDIVIDUAL COMMISSIONERS
DISRUPTIONS OF COMMISSIONER PUBLIC MEETINGS ARE PROHIBITED
DISRUPTIONS INCLUDE, BUT ARE NOT LIMITED TO THE FOLLOWING REFUSAL OF SPEAKER TO LIMIT REMARKS TO TOPICS RELATED TO THE CONDUCT OF POOR BUSINESS THREATS AND ABUSIVE OR HARASSING BEHAVIOR AND LANGUAGE OBSCENE LANGUAGE AND GESTURES
REFUSAL OF A SPEAKER TO COMPLY WITH THE ALLOTTED TIME SET FOR THE INDIVIDUAL SPEAKER'S PUBLIC COMMENT LEAVING THE PODIUM OR TESTIMONY TABLE TO PHYSICALLY APPROACH THE COMMISSIONERS OR STAFF DURING ONE'S PUBLIC COMMENT PROVIDED SPEAKERS MAY OFFER WRITTEN MATERIALS TO COMMISSION CLERK AND ANY BEHAVIOR THAT DISRUPTS, DISTURBS, OR OTHERWISE IMPEDES THE MEETING
ANY DISRUPTION WILL RESULT IN A SPEAKER'S MICROPHONE BEING IMMEDIATELY SHUT OFF AND A WARNING OR LOSS OF SPEAKING PRIVILEGES OR REMOVED FROM THE MEETING AS PROVIDED IN THE COMMISSION'S BYLAWS WRITTEN MATERIALS PROVIDED TO THE CLERK WILL BE INCLUDED IN TODAY'S MEETING RECORD
THE CLERK HAS A LIST OF THOSE PREPARED TO SPEAK
WE ARE TAKING COMMENTS FROM ANYONE WHO HAS SIGNED UP TO SPEAK VIRTUALLY, AS WELL AS FROM ANYONE WHO HAS JOINED US IN THE CHAMBERS
WHEN I CALL YOUR NAME
IF YOU ARE JOINING VIRTUALLY, PLEASE UNMUTE YOURSELF
THEN PLEASE REPEAT YOUR NAME FOR THE RECORD AND STATE YOUR TOPIC RELATED TO THE CONDUCT OF THE POOR BUSINESS
IF YOU'RE ON THE TEAM'S MEETING AND AT THE SAME TIME STREAMING THE MEETING ON THE WEBSITE, PLEASE MUTE THE WEBSITE STREAM TO AVOID FEEDBACK
IF YOU ARE SPEAKING FROM THE ROOM, PLEASE COME TO THE TESTIMONY TABLE, REPEAT YOUR NAME FOR THE RECORD AND STATE YOUR TOPIC RELATE TO THE CONDUCT OF PORT BUSINESS
GOING ON TO THE LIST OF SPEAKERS, OUR FIRST SPEAKER WILL BE ALEX ZIMMERMAN
ALEX, YOU HAVE TWO MINUTES
PLEASE STATE YOUR FULL NAME AND THE TOPIC RELATED TO CONDUCT PORT BUSINESS
LET ME GO AHEAD AND GET THE TIMER UP BEFORE WE BEGIN
THANK YOU VERY MUCH
GIVE ME JUST A SECOND
ALEX, IS HERE OKAY? YES, BUT I WANT TO GET THE TIMER UP
HANG ON A MINUTE FOR ME
IT'S WORKING
MICROPHONE
YEAH, IT'S WORKING
THANK YOU VERY MUCH
YEAH, HANG ON A SECOND
THANK YOU, ALEX? YEAH, OKAY
ALL RIGHT, GO AHEAD
WHEN YOU'RE READY
MY NAME ALEX
IT'S WORKING
YES
I WON'T START IT UNTIL YOU STATE YOUR CONDUCT OR YOUR TOPIC RELATED TO THE CONDUCT OF THE PORT
ALEX, YOU NEED TO STATE YOUR FULL NAME AND THE TOPIC RELATED TO THE PORT
I KNOW MY NAME
I REMEMBER
YEAH, IT'S FOR THE PUBLIC, NOT FOR YOU
SO IT'S WORKING OR NOT? YES
ALEX, DO YOU WANT ME TO MY NAME ALEX ZIMMERMAN
THANK YOU VERY MUCH
MY NAME ALEX ZIMMERMAN AND I CAN DO THAT FOR SHIP TO THE MOON
I WANT TO SPEAK ABOUT PORT ETHICAL STANDARD
WHAT IS I SEE HERE FOR MANY TIME, FOR MANY YEARS
FIRST, I DON'T UNDERSTAND AND I SPOKE WITH YOU BEFORE ABOUT THIS
WHY COMMISSIONER ALWAYS LATE? I DON'T UNDERSTAND THIS
I CAN IMAGINE
SO THIS HAPPENED BECAUSE YOU SHOW WHO'S BOSS IN THIS ROOM
THIS EXACTLY HAPPENED DIRECTOR IN .[INAUDible 00:16:47] YOU KNOW WHAT HAS BEEN ALWAYS COME BEFORE IS A STANDARD GENTLEMAN BUSINESS PROCEDURE
WHAT HAS EXIST IN ALL COUNTRY
I LIVE BEFORE IN MANY COUNTRIES, SO I KNOW WHAT IS I'M TALKING AND I'M PROFESSIONAL BUSINESSMAN
IT'S NUMBER ONE
NUMBER TWO, I'M TOTALLY CONFUSED ABOUT COUNCIL PERSONAL STANDARDS
YOU KNOW WHAT THIS MEANS? BECAUSE SOMEBODY CONSOLED FROM YOU WHEN I START SPEAKING, TAKE CHAIR OUT AND SHOW TO PUBLIC
HE'S SMART ASS
I NEVER SEE LIKE THIS BEFORE IN MY LIFE
BUT THIS HAS HAPPENED BEFORE MANY TIMES HERE, GUYS, YOU UNDERSTAND WHAT HAS HAPPENED IN THIS SITUATION? YOUR ETHICAL STANDARD CLOSE TO NONE, TO ZERO IS EXACTLY WHO YOU ARE
AND I TOLD YOU BEFORE MANY TIMES, GUYS, YOU NEED SOMETHING DOING WITH YOURSELF BECAUSE YOU LOW LIFE, VERY PRIMITIVE
VERY PRIMITIVE
ALEX, YOUR COMMENTS AREN'T RELEVANT TO THE PORT
COULD YOU PLEASE KEEP YOUR TOPIC TO THE PORT STANDARDS? IT'S A FUNDAMENTAL POINT IN EVERY MEETING GOVERNMENT HAVE EVERY MEETING IS OFFICIALLY EVERYWHERE
ETHICAL STANDARD VERY IMPORTANT
SO I WANT WHAT IS YOU COME FIRST TIME BEFORE TWELVE, LIKE ALL CIVILIZED PEOPLE DOING IN STOPPING SOMETHING, DOING WHAT IS ABSOLUTELY STUPID AND DON'T HAVE SENSE SHOW
SO YOU ARE BOSSES
EVERYBODY KNOW YOU ARE VERY LOW CLASS BOSSES COME FROM JOHN KIA
IS THIS EXACTLY MY OPINION? ALEX, YOUR COMMENTS NEED TO STAY WITH THE NEW CONDUCT BOARD
NO PROBLEM
YOU HAVE RIGHT FOR CUT
THANK YOU
MOVING ON, I'M GOING TO ALTERNATE BETWEEN VIRTUAL AND IN PERSON SPEAKERS
I THINK THE NEXT VIRTUAL SPEAKER IS LIZ JOHNSON
LIZ, CAN YOU HEAR ME? YES, I CAN
EXCELLENT
WHEN YOU STATE YOUR NAME AND THE TOPIC RELATED TO POOR CONDUCT, WE'LL START THE TIMER
BEAUTIFUL, THANK YOU
MY NAME IS LIZ JOHNSON AND I AM SPEAKING ON BEHALF OF THE TOURISM THE STATE OF WASHINGTON TOURISM ACTION ITEM
EXCELLENT, GO AHEAD
FIRST OFF, THANK YOU COMMISSIONERS FOR ALLOWING ME TO ADDRESS THIS TOPIC TODAY
MY NAME IS LIZ JOHNSON, AS I SAID AND I AM THE DIRECTOR OF INTERNATIONAL TOURISM AT VISIT SEATTLE
I HAVE BEEN PERSONALLY INVOLVED WITH THE MOVE TOWARDS GREATER COOPERATION BETWEEN THE PORT OF SEATTLE AND STATE OF WASHINGTON TOURISM
THE THREE ORGANIZATIONS RECENTLY MADE AN IMPORTANT STEP IN COLLABORATING BY SIGNING A JOINT CONTRACT IN AUSTRALIA AND NEW ZEALAND WITH LINKED TOURISM
AT THE BEGINNING OF JANUARY 2023
WE INSTIGATED THE RFP PROCESS TOGETHER AND ULTIMATELY AGREED ON THE BEST ORGANIZATION TO REPRESENT OUR SHARED INTERESTS
THIS IS, TO MY KNOWLEDGE, THE FIRST TIME THAT THE THREE ORGANIZATIONS HAVE CREATED SUCH A PARTNERSHIP
SOON AFTER MY COLLEAGUE CAITLIN SHEARER TRAVELED TO AUSTRALIA AND NEW ZEALAND FOR A TRADE SHOW AND MEETINGS WITH TRAVEL, TRADE AND MEDIA
SHE DID THIS WITH THE NEW TRADE AND MEDIA MANAGERS FROM LINK BY HER SIDE
THE OVERWHELMING RESPONSE FROM DOWN UNDER ABOUT OUR JOINT PARTNERSHIP WAS, IT'S ABOUT TIME
THEY WERE HAPPY TO HAVE SEATTLE AND WASHINGTON STATE BACK IN THE MARKET AND REPEATEDLY SAID THAT THIS JOINT PROMOTION, QUOTE, JUST MAKES SENSE
THE INTERNATIONAL MARKET RECOGNIZES THE VALUE OF OUR PARTNERSHIP, AND IT'S IMPERATIVE THAT WE CONTINUE TO DO THE SAME
I LOOK FORWARD TO MORE COLLABORATION ACROSS MULTIPLE INTERNATIONAL MARKETS IN THE NEAR FUTURE WITH EACH OF THESE ORGANIZATIONS
THANK YOU
THANK YOU VERY MUCH, LIZ
WE'LL GO ON TO THE NEXT IN PERSON SPEAKER, WHICH IS MARGARET RICHARD
MARGARET, IF YOU COULD STATE YOUR FULL NAME FOR THE RECORD AND THE TOPIC RELATED TO PORT CONDUCT, AND THEN WE'LL GET THE TIMER STARTED
THANK YOU
MY NAME IS MARGUERITE RICHARD
WHAT ELSE DID YOU ASK ME AND YOUR TOPIC? WELL, MY TOPIC IS PORT BUSINESS
I DON'T KNOW WHAT'S GOING ON OVER HERE
I THOUGHT I TURNED MY PHONE OFF
I'M TAKING THIS MATTER VERY PERSONAL TODAY, OKAY
BECAUSE ANYWAY, I THOUGHT I HAD TURNED IT OFF
I'M TAKING IT PERSONAL BECAUSE OF THE SIMPLE FACT THAT I'M AN INDIGENOUS BLACK FEMALE
AND I REALLY FEEL THAT WE'RE ALLOWED TO BE LED TO BE INTIMIDATED WHEN WE COME IN THIS POINT OF VIEW
SO I DON'T LIKE THAT
OKAY
WE HAVE A RECENT DEATH BECAUSE YOU HAVE SECURITY HERE
TYREE NICHOLS, LAW ENFORCEMENT KILLED HIM
IN FRONT OF EVERYBODY
OKAY, THEN I COME DOWN HERE AND I SEE YOU GUYS BRAWL, BEATEN ALEX ZIMMERMAN
I DON'T LIKE THAT
THAT IS AN OFFENSE TO ME, AND I DON'T CARE ANYMORE FOR WHAT HAS ALSO KILLED SOMEBODY HONORABLE MICHAEL B
FULLER
I DON'T KNOW FOR THE RECORD, IF HE CAME DOWN HERE AND EVER ADDRESSED YOU, BUT HE'S DECEASED NOW
HE DIED AUGUST 24, 2022
AND THAT STATEMENT, OFFICIAL OPPRESSION, I'VE NEVER HEARD OF IT
SOMEBODY HELPED ME OUT WITH IT
YOU CAN BE OFFICIALLY OPPRESSED AND THEN LOSE YOUR LIFE BEHIND IT BECAUSE ALL YOU'RE DOING IS FREE SPEECH
AND IF WE DON'T HAVE SPEECH, WHAT DO WE HAVE? A GOD GIVEN RIGHT TO ADDRESS GOVERNMENT WITHOUT FEAR OF RETALIATION
BUT YOU GOT CERTAIN RULES AND REGULATIONS FOR PEOPLE LIKE THIS
THAT'S WHY I'M CARRYING THIS
BECAUSE ALL THE STANDARDS THAT I TRY TO LIVE UP UNDER AND LIVE A GOOD, RIGHTEOUS AND HOLY LIFE, SOMETHING CAME AGAINST ME, JUST OPENING MY MOUTH AND ADDRESSING BODIES LIKE YOU
AND HERE COME ALL THOSE ATTACKS
AND YOU TELL US ABOUT PERSONAL ATTACK
WHAT ARE YOU GOING TO DO ABOUT THE STUFF THAT WE HAVE TO FACE EVERY SINGLE DAY? AND THEY'RE GOING UP ON EVERYTHING THAT WE HAVE TO PUT OUR HANDS ON
THANK YOU, MARGUERITE
YOUR TIME IS UP
I'M SORRY
THANK YOU
SORRY ABOUT NOTHING, BECAUSE I'M NOT JOKING
ALL RIGHT, OUR NEXT VIRTUAL SPEAKER IS GOING TO BE DAVID BLANFORD
DAVID, ARE YOU WITH US? YES, I AM
EXCELLENT
IT'S A BUSY DAY FOR YOU TODAY, DAVID
I SAW YOU EARLIER THIS MORNING IN OLYMPIA
GO AHEAD
PLEASE STATE YOUR FULL NAME FOR THE RECORD AS WELL AS A TOPIC RELATED TO POOR CONDUCT OF BUSINESS AND WE'LL START THE TIMER
YEAH, GIVE ME JUST A MINUTE
MR COMMISSIONER, PRESIDENT, I'M HAVING AN ISSUE WITH THE TIMER
YOU CAN SPEAK BY TELEPHONE
USE TELEPHONE
TWO MINUTES
THIS IS VERY SIMPLE
MANY DOING
OUR TIMER WENT DOWN
SO GIVE ME JUST A MOMENT TO GET IT BACK UP HERE
NO PROBLEM
JUST NOT WANTING TO COOPERATE
HANG ON
THERE WE GO
EXCELLENT
GO AHEAD, DAVID
IF YOU COULD STATE YOUR NAME AND THE TOPIC
GREAT
PRESIDENT CHO COMMISSIONER IS GOOD TO BE WITH YOU TODAY
I'M DAVID BLANFORD, I'M CEO OF STATE OF WASHINGTON TOURISM AND I'M SPEAKING TODAY IN SUPPORT OF THE TOURISM CAT THREE STATE OF WASHINGTON TOURISM ACTION ITEM
DURING THE PAST THREE YEARS, THE PORT OF SEATTLE STATE OF WASHINGTON TOURISM HAVE PARTNERED TO HELP WASHINGTON'S TOURISM INDUSTRY RECOVER FROM THE DEEP IMPACTS OF THE PANDEMIC AND POSITION FOR INCREMENTAL GROWTH IN THE FUTURE
BUT TOURISM CANNOT FULLY RECOVER UNTIL OVERSEAS TOURISM CAN RECOVER
SO CONTINUED PARTNERSHIP WILL BE NEEDED TO REGENERATE IMPORTANT MARKETS FOR US
THREE YEARS AGO, CHINA WAS OUR NUMBER ONE OVERSEAS MARKET AND DEFINITELY OUR BIGGEST GROWTH OPPORTUNITY
MATURE MARKETS LIKE THE UK AND JAPAN HAD SEEN INVESTMENT FROM US FOR 20 YEARS OR MORE
AND THOSE MARKETS UNDERSTAND THIS DESTINATION AND CERTAINLY COULD BE BUILT BACK
GREAT EXCITEMENT ABOUT SOUTH KOREA, FRANCE
BENELUX AND CERTAINLY, AS LIZ JOHNSON SAID, AUSTRALIA AND NEW ZEALAND
REGENERATING INTERNATIONAL TOURISM MARKETS IS CRITICAL FOR WASHINGTON
TOURISM IS AN EXPORT INDUSTRY
THAT MEANS THAT THE PRODUCT IS ALREADY IN PLACE, BUT REQUIRES DELIVERY TO MARKET
THAT MEANS TOURISM DEVELOPMENT AND MARKETING FROM US
STRONG ALIGNMENT EXISTS BETWEEN THE STATE OF WASHINGTON TOURISM THE PORT OF SEATTLE AND VISIT SEATTLE
TOGETHER WE HAVE THE OPPORTUNITY TO STRENGTHEN OUR GLOBAL DESTINATION BRAND, BOLSTER INTERNATIONAL MARKET SHARE AND DRIVE REGIONAL EQUITY AND RESILIENCY ACROSS WASHINGTON
STATE OF WASHINGTON TOURISM AND THE ENTIRE TOURISM INDUSTRY HERE IN OLYMPIA TODAY ARE GRATEFUL FOR THE PORT'S PARTNERSHIP IN RECENT YEARS AND WE THANK YOU FOR YOUR CONTINUED SUPPORT
THANK YOU
THANK YOU SO MUCH
ALL RIGHT, MOVING ON TO ANOTHER IN PERSON COMMENTATOR, STEVEN LINDSTROM IN THE ROOM
ALL RIGHT, STEPHEN, IF YOU COULD STATE YOUR FULL NAME AND THE TOPIC RELATED TO THE PORT
GO AHEAD
MY NAME IS STEPHEN LINDSTROM AND I WAS RETIRED FROM THE PORT 16 MONTHS AGO BECAUSE OF YOUR HB 57 26 DON'T GET THE SHOT THING
I'M NOT GOING TO TALK ABOUT THAT RIGHT NOW BECAUSE IT STILL IS VERY EMOTIONAL TO ME
WHAT I AM GOING TO ASK IS DO YOU GUYS CARE ABOUT SAVING MONEY? I WORKED IN THE BOILER ROOM
AND YOUR WATER TREATMENT ON YOUR BOILERS, NUMBER ONE, YOUR BOILERS AT THE AIRPORT ARE 70 YEARS OLD
THE WATER TREATMENT IS BAD AND THE LAST TIME THEY DID AN OPENING THAT I WAS THERE, THERE WAS A 16TH OF AN INCH OF STUFF INSIDE THE TUBES
AND WHEN YOU HAVE THAT INSIDE THE TUBES, IT INSULATES THE TUBES, AND YOU LOSE 15% TO 20% EFFICIENCY
SO YOU'RE TALKING ABOUT 20% OF MORE GAS 24 HOURS A DAY, SEVEN DAYS A WEEK THAT YOU'RE LOSING BECAUSE YOU DIDN'T CLEAN IT WELL ENOUGH, AND IT DOESN'T COST THAT MUCH FOR WATER
THE SECOND THING, YOUR COOLING
I WAS A BOILER OPERATOR
I KNOW I FIXED STUFF FOR SIX YEARS
THERE YOUR COOLING SYSTEM
IT RUNS ON A MULTIMILLION DOLLAR COMPUTER PROGRAM, BUT THE PROGRAM IS ONLY AS GOOD AS THE NUMBERS GOING INTO IT
THEY HAVE NOT IN SIX YEARS THAT I KNOW OF, CALIBRATED THEIR FLUID METERS
SO YOU GET BAD NUMBERS GOING IN, YOU USE MORE ELECTRICITY
PRETTY SIMPLE
AND THAT WON'T COST
THE SAVINGS ON THAT WILL BE HUGE COMPARED TO WHAT IT WOULD COST TO FIX IT
AND THE THIRD THING THAT I'M GOING TO BRING UP IS THAT YOU HAVE A DA TANK, WHICH IS A DE AERATING TANK THAT GOES TO YOUR BOILERS
THEY'RE SUPPOSED TO BE OPEN AND INSPECTED EVERY YEAR BECAUSE THEY HAVE PRESSURE ON THEM, AND IF THEY GO BAD, THEY EXPLODE AND PEOPLE GET HURT OR KILLED
THAT DA TANK WAS NEVER OPENED FOR THE SIX YEARS THAT I WAS THERE AND ANOTHER 15 YEARS BEFORE THAT
SO ALL I'M SAYING IS THAT IS A SAFETY CONCERN
WE BROUGHT THIS UP TO THE MANAGERS, BUT THEY DIDN'T DO ANYTHING ABOUT IT
SO HERE I AM AT THE PORT
THANK YOU, STEVEN
SO MAYBE YOU CAN KEEP SOMEBODY FROM GETTING KILLED THAT I WORKED WITH
THANK YOU, STEVEN
OUR NEXT SPEAKER IS VIRTUAL IS JAMES JENNINGS
ALL RIGHT
GOOD AFTERNOON
YES
EXECUTIVE DIRECTOR METRUCK, PRESIDENT CHO AND COMMISSIONERS
MY NAME IS JAMES JENNINGS, OR JJ, AS SOME WITHIN THE PORT MELMIEVS HERE TO SPEAK IN REGARDS TO THE PORT'S HR 34 AND EX 29 POLICIES FOR THE BENEFIT OF COMMISSIONERS HASEGAWA AND MOHAMMED, WHO HAVE NOT YET HAD THE PLEASURE TO MEET
I'D LIKE TO PROVIDE A LITTLE BIT OF BACKGROUND
I WAS A PORT EMPLOYEE FOR 26 YEARS, HAVING A BIT OF A CINDERELLA STORY CAREER, STARTING AS A COLLEGE INTERN AND FINISHING AS THE DIRECTOR OF AVIATION, BUSINESS AND PROPERTIES
AS A SAMPLE OF MY WORK, I STOOD BEFORE COMMISSIONERS, MANY HERE TODAY, LAYING THE GROUNDWORK FOR MANY MAJOR SEATAC INTERNATIONAL AIRPORT CAPITAL PROJECTS, MOST NOTABLY THE CONCOURSE SEA EXPANSION PROJECT, SEA GATEWAY PROJECT, AND CONCOURSE EXPANSION FOR AIRPORT LOUNGES
I'M NOT SURE IF IT'S COMMONLY KNOWN, BUT I'M ONE OF THE EMPLOYEES THAT WAS QUIETLY TERMINATED WHEN THE PORT INSTITUTED ITS HR 34 POLICY REQUIRING VACCINATION, HAVING RECEIVED NO ACCOMMODATION FOR MY SINCERELY HELD RELIGIOUS BELIEFS
BUT I'M NOT HERE TODAY TO TREAD OUT SOUR GRAPES OR ASK FOR MY JOB BACK
IN FACT, I'VE WORKED VERY HARD TO MOVE ON FROM MY PORT EMPLOYMENT
CURRENTLY WORKING WITH MY WIFE IN A SMALL AIRPORT CONSULTING BUSINESS CALLED TWO J CONSULTING
BUT ONE CHALLENGE WE'RE HAVING IS THAT WE'RE NOT CURRENTLY ALLOWED TO WORK ON SITE AT PORT FACILITIES DUE TO OUR VACCINATION STATUS
THIS LIMITS OUR ABILITY TO POTENTIALLY COMPETE FOR WORK AND LIMITS US EXCLUSIVELY TO VIRTUAL WORK
BUT EVEN MORE IMPORTANT IS THE FACT THAT NOT EVERYONE WHO IS TERMINATED HAS FARED AS WELL AS I
YOU MAY HEAR FROM SOME OF THEM TODAY
AS I UNDERSTAND, THERE ARE OTHERS THAT MAY BE PUBLICLY SPEAKING, SOME ARE BETTER
SOME CONTINUE TO STRUGGLE TO FIND WORK
SOME AREN'T CURRENTLY ALLOWED TO RECOMPETE FOR THEIR JOBS BACK AT THE PORT, WHICH FEELS DISCRIMINATORY IN LIGHT OF THE CURRENT COVID-19 CLIMATE AND EVIDENCE
SO I'M HERE TODAY TO ASK THE PORT, WHY IS IT? WHY HAVE YOU NOT RETRACTED OR SIGNIFICANTLY MODIFIED YOUR VACCINATION REQUIREMENTS FOR BOTH EMPLOYEES AND CONTRACTORS, BOTH HR 34 AND EX 29? CLEARLY, THE BODY OF EVIDENCE AND THE PRACTICAL, POLITICAL AND SCIENTIFIC JUSTIFICATIONS THAT UNDERPIN THE DEVELOPMENT OF THOSE POLICIES HAS DISSOLVED
WE KNOW UNVACCINATED EMPLOYEES AND CONTRACTORS ARE NO GREATER RISK TO THE EMPLOYEE POPULATION
AND POLITICALLY, PRESIDENT BIDEN HAS LONG GIVEN UP ON AYE
FEDERAL CONTRACTOR REQUIREMENTS
AND KING COUNTY AND SEATTLE HAVE ALL RETRACTED THEIR REQUIREMENTS
AND SCIENTIFICALLY, EVEN THE CDC NOW RECOGNIZE YOUR TIME IS UP
COULD YOU CONCLUDE FOR US? YES, I WILL
I JUST IMPLORE YOU TO CONSIDER RETRACTING OR SIGNIFICANTLY MODIFYING HR 34 AND EX 29 TO ALIGN WITH THE CURRENT COVID-19 CLIMATE AND EVIDENCE
THANK YOU
THANKS, JJ
IT'S GOOD TO SEE YOU
OUR NEXT PUBLIC SPEAKER IS DR ELIZABETH BURTON
ALL RIGHT, DR BURTON, IF YOU COULD STATE YOUR FULL NAME AND THE TOPIC FOR THE RECORD, AND THEN WE'LL START THE CLOCK
THANK YOU
GOOD AFTERNOON
I'M DR ELIZABETH BURTON, COMMENTING ON ITEM EIGHT L THE INTERNATIONAL TOURISM MARKETING INITIATIVE
AT PAST PRESENTATIONS ON THIS TOPIC, I HAVE NEVER HEARD ANY COMMISSIONER ASK, HOW WILL THIS PROPOSED INCREASE IN INTERNATIONAL TOURISM AFFECT OUR ABILITY TO MEET OUR EMISSIONS GOALS? SPECIFICALLY, OUR GOAL TO REDUCE SCOPE THREE EMISSIONS, 50% BY 2030
HOW MANY ADDITIONAL TONS OF GREENHOUSE GASES WILL THIS PUT INTO THE ATMOSPHERE? FOR EVERY DECISION YOU MAKE, YOU NEED TO ASK, WILL THIS HELP TO SOLVE THE CLIMATE CRISIS, OR WILL IT MAKE THE CLIMATE CRISIS WORSE? INCREASING INTERNATIONAL TOURISM WILL MAKE THE CLIMATE CRISIS WORSE
I WOULD LIKE YOU TO TAKE THIS ITEM OUT OF THE CONSENT AGENDA, DISCUSS IT FURTHER, AND VOTE IT DOWN
THE IPCC HAS DETERMINED THAT IN ORDER TO HAVE A CHANCE OF LIMITING GLOBAL WARMING TO 1.5 DEGREES, EACH PERSON ON EARTH CAN EMIT NO MORE THAN ONE AND A HALF TONS OF GREENHOUSE GASES PER YEAR
EACH PASSENGER ON A SINGLE ROUND TRIP FLIGHT FROM SYDNEY, AUSTRALIA TO SEATTLE EMITS 7.6 TONS OF GREENHOUSE GASES, FIVE TIMES THE AMOUNT THAT'S COMPATIBLE WITH 1.5 DEGREES OF WARMING
YOU NEED TO BE AWARE OF THIS
IT NEEDS TO BE PART OF THE DISCUSSION
THE LAST SLIDE IN TODAY'S PRESENTATION CLAIMS THAT PROMOTING INTERNATIONAL TOURISM BENEFITS ALL WASHINGTON RESIDENTS
I
DON'T THINK THE HUNDREDS OF WASHINGTON RESIDENTS AND BILLIONS OF SEA CREATURES WHO DIED IN THE 2021 HEAT DOME WOULD AGREE WITH THAT
NOR THE WASHINGTON CHERRY, WHEAT AND ONION FARMERS WHO LOST THEIR CROPS THAT YEAR, NOR THE WINERIES WHOSE CROPS WERE RUINED BY WILDFIRE SMOKE
IN FACT, THE CLIMATE IMPACT OF INTERNATIONAL TOURISM HARMS ALL LIVING THINGS ON EARTH
IT IS PAST TIME THAT YOU FIND A LESS DESTRUCTIVE WAY TO PROMOTE PROSPERITY AND WELL BEING IN THIS REGION
THANK YOU
THANK YOU, DR BURTON
OUR NEXT SPEAKER IS ACTUALLY KATHLEEN MORIARTY
WE'VE ACTUALLY RUN OUT OF VIRTUAL SPEAKERS, SO KATHLEEN IS NEXT
HI, I'M KATHLEEN MORIARTY
I WORKED AT THE PORT FOR 18 AND A HALF YEARS UNTIL 16 MONTHS AGO WHEN YOU TERMINATED ME FOR NOT FOLLOWING YOUR COMPLIANCE RULES
THE PORT OF SEATTLE LOVES TO TALK A BIG GAME ABOUT THE IMPORTANCE OF DIVERSITY AND INCLUSION
YET, GIVEN THE CHANCE, YOU LITERALLY CREATED A NEW CLASS OF PEOPLE TO DISCRIMINATE AGAINST
YOUR PROPAGANDA REGARDING THE PANDEMIC OF THE UNVACCINATED WAS EFFECTIVE IN CREATING AND SPREADING FEAR AGAINST PEOPLE WHO BELIEVE IN THE POWER OF GOD, IN THEIR NATURAL IMMUNITY TO PROTECT THEIR HEALTH
EVEN WORSE, AGAINST PEOPLE WHO HAVE MEDICAL CONDITIONS THAT AREN'T ALLOWED TO GET VACCINATED
YOU USED COERCION AND BRIBERY TO FORCE PEOPLE TO TAKE AN UNWANTED, NOT FULLY APPROVED INJECTION OR LOSE THEIR LIVELIHOOD
YOUR LACK OF ACCOMMODATIONS FOR THOSE WHO SUBMITTED RELIGIOUS AND MEDICAL EXEMPTIONS DUE TO A PERCEIVED UNDUE HARDSHIP THAT WOULD NEGATIVELY IMPACT WORKPLACE SAFETY AND POSE A THREAT TO THE HEALTH AND SAFETY OF EMPLOYEES WAS AND REMAINS HYPOTHETICAL
TO ASSUME AN UNVACCINATED PERSON IS MORE CONTAGIOUS THAN A VACCINATED PERSON WITHOUT ANY MEDICAL EVALUATION OR DIAGNOSIS, HAS NO MERIT, AND HAS PROVEN TO BE FALSE
IN FACT, IN AN EMAIL FROM STEVE METRUCK DATED JANUARY 26, 2022, YOU ARE CANCELING ALL IN PERSON MEETINGS BECAUSE, TO QUOTE, SO FAR IN JANUARY, WE ARE SEEING NEARLY AS MANY EMPLOYEE COVID POSITIVE CASES AND EPISODES OF PERSON TO PERSON TRANSMISSIONS IN THE WORKPLACE AS WE EXPERIENCED IN ALL OF 2021
SO OVER TWO MONTHS AFTER YOU FIRED ALL UNINVACCINATED EMPLOYEES, YOUR COVID INFECTIONS WERE HIGHER THAN EVER
NOT SURPRISING GIVEN EMAILS RELEASED THROUGH FOIA SHOW THAT WASHINGTON STATE PUBLIC OFFICIALS, HEALTH OFFICIALS KNEW THE VACCINES DID NOT STOP TRANSMISSION AND SHOWED THAT VACCINATED PEOPLE ARE MORE CONTAGIOUS THAN UNVACCINATED
FAST FORWARD TO TODAY WITH YOUR CONTINUED NEED OF THE VACCINE MANDATE WHEN EVERYONE ELSE IS DROPPING THEIRS, STATING IN A FEBRUARY 8 EMAIL YOU WILL CONTINUE TO KEEP AN EYE ON LOCAL, STATE AND NATIONAL CHANGES TO COVID-19 POLICIES AND CONTINUE TO REVIEW YOUR MITIGATION STRATEGIES AND POLICIES, KEEPING THE KEY OBJECTIVE OF ENSURING THE SAFETY AND HEALTH OF YOUR WORKFORCE
WHAT SCIENCE ARE YOU FOLLOWING THAT IS DIFFERENT THAN EVERYONE ELSE'S? WE ARE HERE TO PUT YOU ON NOTICE THAT WHAT YOU DID AND CONTINUE TO DO IS NOT ONLY ILLEGAL, BUT WAS ALSO IMMORAL
WE WILL NOT GO AWAY UNTIL YOU ARE HELD ACCOUNTABLE
THANK YOU, KATHLEEN
I BELIEVE THE NEXT SPEAKER IS GAIL
I'M SORRY, THIS HANDWRITING IS A LITTLE HARD
EARL GAIL? YEAH, GO AHEAD
FOR THE RECORD, THAT LAST NAME IS ABE
ABE
GAIL ABE
OKAY
YEAH
IF YOU COULD JUST RESTATE THE NAME FOR THE RECORD AND YOUR TOPIC
THANK YOU SO MUCH
MY NAME IS GAIL ABE
I'M ALSO HERE BECAUSE I WAS FIRED FROM THE PORT FOR NOT TAKING THE JAB
AND I JUST HAVE A FEW THINGS TO SAY
IT'S LIKE YOU'RE SO POOR
MY BODY, MY CHOICE
IF I'M GOING TO BE PREGNANT AND ABORT A BABY, KILL IT
THAT'S GOOD
IT'S OKAY
BUT IF I DON'T WANT TO TAKE SOME POISONS IN MY BODY, I CAN'T WORK FOR THE PORT ANYMORE
I WAS THERE FOR ELEVEN YEARS AS A MECHANIC
I WORKED HARD
I GOT MY JOB DONE
I HAD A GREAT TIME BEING THERE
I LOVED IT
LOVED THE PEOPLE YOU TALK ABOUT WOMEN'S MONTH AND OUR RIGHTS, QUALITY OF LIFE
YOU TRY TO PUT FEAR INTO US
IF YOU DON'T TAKE THE JOB, YOU'RE GOING TO LOSE YOUR JOB
GUESS WHAT? DIDN'T TAKE THE JAB
I'VE NEVER HAD COVID, AND I HAVE A GREAT JOB NOW
SO GOD BLESS YOU ALL, AND GOD IS IN CONTROL
THANK YOU, GAIL
NEXT SPEAKER IS WILEY DURESSON
HEY, EVERYONE
MY NAME IS WILEY DURSON AND I AM HERE ON BEHALF OF MY FRIENDS WHO WERE TERMINAL BECAUSE OF THE VACCINE MANDATES IN NOVEMBER OF 2021
I DIDN'T EVEN KNOW WHAT THE PORT OF SEATTLE WAS
SINCE THEN, I'VE GOTTEN TO KNOW SOME OF YOUR FORMER EMPLOYEES
THEY ARE AMONG THE BRAVEST AND MOST THOUGHTFUL PEOPLE I KNOW
THEY ARE TRULY UNSUNG HEROES WHO ENSURE OUR MODERN SOCIETY FUNCTIONS
MY QUESTION IS, WHY WOULD YOU DENY THEM EMPLOYMENT FOR NOT PARTICIPATING IN AN EXPERIMENTAL MEDICAL TREATMENT, ESPECIALLY NOW THAT THE PUBLIC HEALTH GUIDANCE HAS BEEN ABANDONED AS INEFFECTIVE? I'M CONCERNED THAT THE CAPRICIOUS DECISIONS MADE BY THE PORT TO DENY THESE EMPLOYEES WORK WILL HAVE CONSEQUENCES FOR THE VITAL SERVICES THEY PROVIDE TO ENSURE THAT OUR COMMUNITY FUNCTIONS
THAT'S ALL I HAVE TODAY
THANK YOU
THANK YOU, WILEY
SO THAT CONCLUDES OUR SIGN UPS TODAY
IS THERE ANYONE ELSE PRESENT ON THE TEAM'S CALL OR PRESENT IN THE ROOM TODAY WHO DIDN'T SIGN UP? WHO WISHES TO ADDRESS THE COMMISSION? IF SO, PLEASE STATE AND SPELL YOUR NAME AND STATE THE TOPIC RELATED TO THE CONDUCT OF THE PORT YOU WISH TO SPEAK ABOUT FOR THE RECORD
ALL RIGHT, SEEING NONE AT THIS TIME, I'LL ASK THE CLERK TO PLEASE GIVE A SYNOPSIS OF ANY WRITTEN COMMENTS WE MAY HAVE RECEIVED
PARDON ME
THANK YOU
MR COMMISSION PRESIDENT
MEMBERS OF THE COMMISSION
MR EXECUTIVE DIRECTOR
WE'VE RECEIVED ONE WRITTEN COMMENT TODAY FROM ROBIN BRIGGS, SEATTLE RESIDENT, WHO URGES AGAINST THE APPROVAL OF AGENDA ITEM EIGHT L STATING THAT THERE IS NO NEED TO ADVERTISE TO TOURISTS, CITING ENVIRONMENTAL CONCERNS AND ADVOCATES, ALTERNATIVELY, FOR FUNDING FOR OFFSHORE WINDMILLS TO INCREASE CLEAN ELECTRICAL CAPACITY AND LOCAL HIGH WAGE JOBS
AND THAT CONCLUDES THE WRITTEN COMMENTS RECEIVED TODAY
GREAT
THANK YOU, CLERK HART
NO FURTHER PUBLIC TESTIMONY
WE'LL MOVE ON TO THE CONSENT AGENDA
ALL RIGHT
ITEMS ON THE CONSENT AGENDA ARE CONSIDERED ROUTINE AND WILL BE ADOPTED BY ONE MOTION
ITEMS REMOVED FROM THE CONSENT AGENDA MAY BE CONSIDERED SEPARATELY IMMEDIATELY AFTER ADOPTION OF THE REMAINING CONSENT AGENDA ITEMS AT THIS TIME, THE CHAIR WILL ENTERTAIN A MOTION TO APPROVE THE CONSENT AGENDA COVERING ITEMS 8-A, 8-B, 8-C, 8-D, 8-E, 8-F, 8-G, 8-H, 8-I, 8-J, 8-K, 8-L, 8-M
8-N
DO I HAVE A MOTION? MR PRESIDENT, I MOVE WE REMOVE ITEM EIGHT L FROM THE CONSENT AGENDA
OKAY
A MOTION IS MADE TO REMOVE EIGHT L
SECOND
OKAY
IT'S BEEN SECONDED
ANY OTHERS? CAN I ASK A CLARIFYING QUESTION OF THE CLERK? I KNOW IN RECENT CORRESPONDENCE YOU SHARED WITH US THAT THERE WOULD BE A MOMENT AHEAD OF THE VOTE ON CONSENT AGENDA TO COMMENT ON ITEMS THAT DON'T NECESSARILY REQUIRE BEING PULLED
CORRECT
IS THAT THIS MOMENT, OR AFTER WE GET A FIRST AND A SECOND ON THE ENTIRE CONSENT AGENDA, WE CAN COMMENT ON IT? THAT IS CORRECT
I'LL HOLD MY COMMENTS TO THAT
OKAY
THERE IS A MOTION ON THE FLOOR TO REMOVE EIGHT L
RIGHT
SO I JUST WANT TO CLARIFY, IS THAT BECAUSE YOU HAVE QUESTIONS FOR STAFF, OR IS IT BECAUSE YOU WANT TO SPEAK TO IT? BOTH
OKAY
AND JUST FOR CLARIFICATION PURPOSES, PULLING SOMETHING FROM THE CONSENT AGENDA DOESN'T REQUIRE A MOTION TO DO THAT
SO WE CAN REMOVE IT EITHER AT APPROVAL OF AGENDA OR AT THIS STAGE
GREAT
SO CAN I GET A MOTION TO APPROVE THE CONSENT AGENDA AS AMENDED? SECOND
ALL RIGHT
IT WAS FIRST AND SECONDED
COMMISSIONERS, PLEASE SAY AYE OR NAY WHEN YOUR NAME IS CALLED
CAN I MAKE A COMMENT BEFORE WE YES
I KNOW THAT THERE HAS BEEN ON THE ITEM EIGHT J
I WANT TO SPEAK TO THAT BECAUSE THERE'S BEEN SOME PUBLIC DISCUSSION AROUND THIS TOPIC
AND I WOULD REFER THE PUBLIC TO THE ORIGINAL PASSAGE OR APPROVAL BY THE COMMISSION OF THIS PROJECT BECAUSE I THINK SOME OF THE QUESTIONS THAT CAME UP THIS TIME WERE THE VERY SAME QUESTIONS THAT CAME UP THE FIRST TIME
AND THERE HAS NOT BEEN A MATERIAL CHANGE IN THE PROJECT THAT WE APPROVED INITIALLY, WHICH IS WHY I DON'T FEEL IT'S NECESSARY TO PULL FROM CONSENT AND RELITIGATE THAT
I DO THINK THERE WAS A LOT OF MISCONCEPTIONS IN THE PUBLIC DISCUSSION THAT I WAS A PART OF AROUND THIS PROJECT, IN PARTICULAR, AS IT RELATES TO SOME OF THE COROLLARY ATTRIBUTES OF THIS PROJECT
AND SO I WOULD REFER FOLKS BACK TO THAT INITIAL CONVERSATION, AND MAYBE STAFF COULD PROVIDE THE EXACT DATE OF THAT, BECAUSE I THINK THERE'S GOOD FOUNDING DOCUMENTS THERE IN PARTICULAR AROUND OTHER EFFORTS THAT WE'RE MAKING WITH REGARD TO MODE SHIFT IN OUR GROUND TRANSPORTATION ACCESS PLAN, WHICH IS WHY I'M COMFORTABLE WITH THIS REMAINING ON CONSENT
EXCELLENT
THANK YOU FOR THOSE COMMENTS
ANY OTHER COMMENTS FROM COMMISSIONERS BEFORE WE TAKE A VOTE? I DO
COMMISSIONER FELLEMAN
THANK YOU
I WAS JUST WONDERING AT SOME POINT IN TIME I'D LOVE TO HAVE WHEN WE'RE TALKING ABOUT THIS ROADWAY CONVERSATION IN THE FUTURE, THAT WE TALK ABOUT OPPORTUNITIES WHEN WE MIGHT BRING THE LIGHT RAIL STATION OR THE ACCESS FACILITATE
THE ACCESS OF LIGHT RAIL EITHER THROUGH THIS MOVING SIDEWALKS WE'VE TALKED ABOUT FOR YEARS AND SEEMED TO ME THAT THIS WOULD HAVE BEEN AN OPPORTUNITY
BUT I DO WANT TO JUST POINT OUT THAT ITEM EIGHT B, IT'S A SIGNIFICANT SUM OF MONEY WE'RE TALKING ABOUT FOR UPDATING OUR HVAC SYSTEM
I'M SORRY, IT IS NOT THAT ONE
I'M SORRY
THAT WAS EIGHT K
THANK YOU
IT DOES SAY IN THE MEMO THAT WE'RE GOING TO LOOK AT POTENTIAL SAVINGS FOR GREENHOUSE GAS EMISSIONS AND OTHER CONSIDERATIONS LIKE THAT
AND I WAS JUST HOPING THAT THAT PROCESS WOULD INCLUDE THE FORMAL REVIEW OF THE SUSTAINABLE EVALUATION FRAMEWORK IN WHICH THE COMMISSION COULD HAVE A CHANCE TO REVIEW OPTIONS IN WHICH WE COULD PUT IN PERHAPS MORE EFFICIENT SYSTEMS THAN WOULD BE JUST CODE MEETING OPPORTUNITIES
SO IT WAS VAGUE IN THE MEMO AS TO WHETHER IT WOULD TRIGGER THE SUSTAINABLE EVALUATION FRAMEWORK
WHILE IT DID ACKNOWLEDGE THE FACT THAT THIS WILL BE LOOKED AT, I'M JUST ASKING THAT WE GIVE IT A FULL EVALUATION
GREAT
THANK YOU
COMMISSIONER FELLEMAN
COMMISSIONER CLERK, GO AHEAD AND CALL THE ROLL
THANK YOU
BEGINNING WITH COMMISSIONER COGGINS FOR APPROVAL OF CONSENT AGENDA
AYE
THANK YOU
COMMISSIONER FELLEMAN
AYE
THANK YOU
COMMISSIONER HASEGAWA
AYE
THANK YOU
COMMISSIONER MOHAMMED AYE
THANK YOU
AND COMMISSIONER CHO
AYE
THANK YOU
FIVE AYES IS ZERO NAYS FOR THIS ITEM
EXCELLENT
THANK YOU VERY MUCH
AND NOW WE WILL MOVE ON TO CONSIDERING THE ITEM THAT WAS PULLED FROM CONSENT, WHICH WAS ITEM EIGHT, L METRUCK
OR IF YOU WANT TO INTRODUCE THE ITEM, CLERK HART
AND THEN WE'LL HAVE STEVE METRUCK INTRODUCE IT
THANK YOU
I'LL GO AHEAD AND READ THAT INTO THE RECORD
JUST ONE MOMENT TO GET THERE
THIS IS ITEM EIGHT L AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO APPROVE A CONTRACT WITH STATE OF WASHINGTON TOURISM DESIGNATED FOR COLLABORATIVE INTERNATIONAL TOURISM MARKETING EFFORTS IN THE AMOUNT OF $800,000
WE DO HAVE A PRESENTATION IF IT'S WANTED, MR EXECUTIVE DIRECTOR, YOU'LL HAVE TO LET US KNOW
COMMISSIONER, ESTABLISHING INTERNATIONAL TOURISM IS A TOP PRIORITY FOR THE PORT OF SEATTLE AND ITS PARTNERS LIKE VISIT, SEATTLE AND THE STATE OF WASHINGTON
THIS ACTION WILL ACTIVATE ADDITIONAL MARKETS IN ASIA, FRANCE AND THE NORDICS, WITH POTENTIAL ACTIVATION IN INDIA, MEXICO AND SOUTH AMERICA AS WELL
PRESENTERS THIS AFTERNOON ARE DAVE MCFADDEN, MANAGING DIRECTOR, ECONOMIC DEVELOPMENT DIVISION, AND NICK LEONTI, DIRECTOR OF TOURISM DEVELOPMENT
SO WE CAN EITHER GO THROUGH THE PRESENTATION OR ANSWER COMMISSIONER QUESTIONS, WHICHEVER COMMISSIONER WOULD LIKE
THE COMMISSIONERS HAVE QUESTIONS OFF THE TOP
ALL RIGHT
WE'RE GOING TO GO THROUGH THE PRESENTATION, IT SEEMS GO AHEAD
GOOD AFTERNOON, COMMISSIONERS
GOOD AFTERNOON, EXECUTIVE DIRECTOR METRUCK
TODAY WE'RE ASKING FOR AUTHORIZATION FOR SOME CONTRACTS THAT WILL SUPPORT INTERNATIONAL TOURISM MARKETING
AND LET'S GO TO THE NEXT SLIDE, PLEASE
SO, AS SOME OF OUR CALLERS, ESPECIALLY DAVE BLANFORD WITH THE STATE OF WASHINGTON TOURISM, SAID, WELL, WE'VE SEEN SOME RECOVERY IN THE TOURISM INDUSTRY
WE'VE SEEN A BOUNCE AT SEA, WE'VE SEEN A LIFT AT OUR CRUISE TERMINAL
BUT THE FOLKS THAT HAVEN'T QUITE SHOWN UP ARE INTERNATIONAL TRAVELERS AND VISITORS
THE STATS CLEARLY SHOW THAT THEIR VISITATION IS STILL WAY DOWN COMPARED TO PREVIOUS PANDEMIC
I THINK YOU PROBABLY UNDERSTAND THERE ARE MANY REASONS FOR THAT
BUT WHAT WE SEE IS AN UPSIDE OPPORTUNITY
WE DO SEE A BOUNCE
WE'RE SEEING VISITORS START COMING FROM CHINA AND OTHER PLACES THAT HAVE REALLY BEEN SHUT DOWN, NOT VISITING FOR THE LAST THREE YEARS
SO WE WANT TO TAKE ADVANTAGE OF THAT MOMENTUM AND GET OUT AND PRIME THE PUMP AND SELL THE OPPORTUNITY OF VISITING WASHINGTON STATE, SEATTLE, FLYING THROUGH SEA AND GETTING ON ONE OF OUR CRUISE SHIPS OR ONE OF OUR PARTNERS CRUISE SHIPS
SO WITH THAT, WHAT I'D LIKE TO DO IS REALLY TURN IT OVER TO MY TOURISM DEVELOPMENT DIRECTOR, NICK LEONI, WHO CAN PROVIDE SOME MORE DETAILS
HELLO, COMMISSION, THANKS FOR HAVING US HERE
ALWAYS HAPPY TO TALK TOURISM
IF WE GO TO THE NEXT SLIDE, PLEASE
WELL, THIS IS ABOUT REESTABLISHING THAT INTERNATIONAL MARKET
SEE THE SECOND BULLET POINT HERE, THAT INTERNATIONAL PASSENGERS ARE STILL 24% BELOW 2019 NUMBERS
AND THIS AGREEMENT WITH STATE OF WASHINGTON TOURISM WILL ALLOW US TO STRENGTHEN THAT BRAND AND GET BACK WHERE WE NEED TO BE IN INTERNATIONAL TOURISM BECAUSE WE WON'T SEE A FULL RECOVERY OF THE TOURISM ECONOMY UNTIL INTERNATIONAL VISITORS RETURN
WE CAN GO TO THE NEXT SLIDE, PLEASE
AGAIN, WE CAN GO OVER THE IMPORTANCE OF INTERNATIONAL VISITORS TO A DESTINATION
THEY VISIT LONGER
THEY VISIT DESTINATIONS THROUGHOUT THE STATE
THEY HAVE THOSE NICE LONG VACATION TIMES WHERE THEY CAN ACTUALLY DO A CRUISE HERE IN SEATTLE AND SPEND TIME BEFORE OR AFTER THEIR CRUISE AND EXPLORE THE ENTIRE STATE AND REGION
THEY VISIT DURING OFF PEAK TIMES, INCLUDING WEEKDAYS AS OPPOSED TO WEEKENDS
THEY VISIT URBAN AND RURAL AREAS AND THEY HELP SUPPORT THOSE IMPORTANT NONSTOP ROUTES TO OUR AIRPORT
NEXT SLIDE, PLEASE
SO, IN PARTNERSHIP WITH THE STATE AND VISIT SEATTLE, WE'RE EVALUATING MARKETS ALL THE TIME AND THESE ARE OUR CRITERIA FOR PRIORITIZING THOSE MARKETS
RIGHT NOW WE HAVE REPRESENTATION IN THE UK, GERMANY, AUSTRALIA, BUT THAT'S REALLY JUST A FOUNDATIONAL LEVEL
WE NEED TO BE ABLE TO EXPAND THAT TO MAKE A DIFFERENCE HERE
SO AS WE'RE EVALUATING MARKETS, WE'RE LOOKING AT THOSE DIRECT FLIGHTS, WE'RE LOOKING AT THE IMPACT THAT BUSINESS TO BUSINESS MARKETING HAS BECAUSE THAT'S OUR MAIN FOCUS, IS WORKING WITH THE TRAVEL TRADE AND TRAVEL MEDIA TO DRIVE THAT VISITATION
THE PROFILE OF THE VISITORS THERE, WHAT IS THAT TIME OFF? WHAT'S THEIR DISPOSABLE INCOME? DO THEY SHARE THE PASSION FOR RESPONSIBLE TRAVEL THAT WE'RE LOOKING TO ENCOURAGE HERE IN OUR STATE
OBVIOUSLY, JUST THE SIZE OF THE COUNTRIES, THE AFFINITY FOR THE US TRAVEL
WE LOOK AT THE CRUISE MARKET FOR THOSE REGIONS
IN ADDITION TO VISA WAIVER STATUS, THERE ARE VISA WAIVER COUNTRIES THAT IT'S EASIER TO GET IN WITH JUST YOUR PASSPORT
WE SEE PLACES LIKE IN INDIA RIGHT NOW WHERE IT CAN BE UP TO A TWO YEAR WAIT JUST TO HAVE AN INTERVIEW FOR YOUR VISA, WHICH OBVIOUSLY CAN IMPACT SOMEONE'S VACATION PLANNING AND OUR ABILITY TO WORK WITH THEM AND ENCOURAGE THEM TO COME
SO WE LOOK AT ALL THOSE FACTORS WHEN WE'RE LOOKING AT WHICH COUNTRIES WE SHOULD BE FOCUSING ON
NEXT
NEXT SLIDE, PLEASE
SO YOU CAN SEE WHERE WE ARE PRIORITIZED MARKETS HERE, UK AND IRELAND, GERMANY
AS LIZ JOHNSON MENTIONED IN HER TWO MINUTES, WE JUST STARTED REPRESENTATION IN AUSTRALIA
IN PARTNERSHIP WITH THEM
WE'RE LOOKING AT JAPAN, SOUTH KOREA, CHINA, FRANCE, BENELUX, AND THERE ARE ADDITIONAL REGIONS BEYOND THIS
OBVIOUSLY, WHEN WE'RE LOOKING AT THOSE CRITERIA, IF THEY CAN ELEVATE UP TO THIS, WE WILL BE HAPPY TO PUT OUR EFFORTS IN THERE WHERE WE CAN SEE SOME ROI
AND AGAIN, WE'RE WORKING WITH MAINLY TRAVEL, TRADE AND TRAVEL MEDIA
THERE WILL BE A LITTLE BIT OF CONSUMER EFFORT HERE, BUT WE REALLY SEE THAT IMPACT COMES THROUGH WORKING WITH THE TRAVEL TRADE IN A B TO B FASHION
NEXT SLIDE, PLEASE
SO THESE ARE OUR PRIORITIES IN WORKING WITH THE STATE
OBVIOUSLY THE STATE THAT OFFICE DIDN'T EXIST FOR A WHILE AND NOW THEY ARE FINDING THEIR WAY IN BUILDING THAT BRAND INTERNATIONALLY
AND THAT'S WHAT'S SO IMPORTANT ABOUT WORKING TOGETHER WITH THEM AND WITH VISIT SEATTLE IS TO BUILD UP THAT BRAND AND TO NOT BE COMPETING WITH EACH OTHER IN THESE INTERNATIONAL MARKETS
SO THAT'S THE TOP OF THIS LIST IS TO GET THOSE FOUNDATIONAL PIECES IN AS A PARTNERSHIP WITH THE OTHER IMPORTANT ORGANIZATIONS THAT HAVE A GLOBAL REACH IN OUR REGION
WE'RE FOCUSED ON EDUCATION OF THE TRAVEL TRADE, KEEPING WASHINGTON STATE AND SEATTLE AS A TOP OF MIND DESTINATION
AND OF COURSE, WE WANT TO INSPIRE VISITATION TO OUR AREA AND REFLECT THE DIVERSITY AND INCLUSIVITY OF WASHINGTON IN EVERYTHING THAT WE DO
NEXT SLIDE, PLEASE
SO THE SCOPE OF WORK LOOKS PRETTY SIMPLE HERE
THERE'S A LOT OF WORK IN THESE BULLET POINTS
NICE THAT IT FITS ON ONE SLIDE
OBVIOUSLY A LOT OF STRATEGY, COMMUNICATION
WE'LL BE IN REGULAR MEETINGS WITH THE STATE REGARDING THESE FUNDS AND VISITS AT SEATTLE
AGAIN, WE MENTIONED THE IN MARKET REPRESENTATION
THAT ISN'T ONE OF THE ORGANIZATIONS TAKING THE LEAD OVER THE OTHER
IT'S A TRUE PARTNERSHIP
WE MEET REGULARLY, WE STRATEGIZE TOGETHER, WE MAKE THESE DECISIONS TOGETHER AS A REGION WE CAN GO TO
THE NEXT SLIDE, PLEASE
QUICK LOOK AT WHAT THE DIFFERENCE IS, WHAT WE WOULD DO WITHOUT THIS AGREEMENT, WHAT WE DO WITH IT
SEE THE $400,000 THERE? AND THIS WILL ALLOW US TO ENHANCE THE MARKETS THAT WE'RE ALREADY IN TO MAKE A GREATER IMPACT WHERE WE KNOW THE UK IS OUR TOP MARKET
THIS IS THE TOP MARKET IN THE US
THIS IS THE TOP MARKET IN THE WASHINGTON
AND WE CAN CONTINUE TO GET GREAT ROI OUT OF MARKETS LIKE THAT
AND WE GET ALL THIS WILL ALLOW US TO EXPAND INTO THOSE ASIA MARKETS AND FRANCE BENELUX REGION AND REALLY MAKE A DIFFERENCE AS A COLLABORATIVE PARTNERSHIP WITH THE STATE
NEXT SLIDE, PLEASE
THIS IS JUST THE CONCLUSION THAT WRAPS UP HOW GREAT IT IS TO WORK TOGETHER WITH THESE PARTNERS
EACH ORGANIZATION HAS HAD DIFFERENT EFFORTS INTERNATIONALLY
THIS REALLY HELPS US STREAMLINE THOSE EFFORTS AND BUILD THE BRAND INTERNATIONALLY TO MAKE MAXIMUM IMPACT FOR ALL WASHINGTONIANS
GREAT
THANK YOU SO MUCH FOR THE PRESENTATION
QUESTIONS FROM COMMISSIONERS
COMMISSIONER HASEGAWA
SURE
THANK YOU SO MUCH FOR WALKING US THROUGH THIS BUDGET REQUEST
I GUESS JUST STARTING FROM THE TOP AS A PORT, TRANSPORTATION IS WHAT WE DO
WE MOVE PEOPLE AND THINGS FROM PLACE TO PLACE
AND WE BALANCE THAT WITH ALSO KNOWING THAT TRANSPORTATION SECTOR IS ONE OF THE LARGEST CONTRIBUTORS OF GREENHOUSE GAS EMISSIONS AND CARBON EMISSIONS
SO WE DO HAVE OUR DIRECTOR OF SUSTAINABILITY IN THE ROOM AS WELL
WE CAN CALL ON HER IF WE NEED TO
BUT I'M WONDERING HOW OUR TOURISM PLAN AND OUR STRATEGY BALANCES AGAINST OUR ENVIRONMENTAL GOALS
LET ME FURTHER EXPAND THAT UNDERSTANDING THAT OUR ENVIRONMENTAL GOALS ADDRESS THINGS THAT ARE DIRECTLY WITHIN OUR PURVIEW
RIGHT? SO CRUISE WOULD BE ONE EXAMPLE OF THAT
OR THINGS THAT ARE SCOPE THREE EMISSIONS AND THINGS THAT ARE NOT DIRECTLY WITHIN OUR PURVIEW, BUT THE WAYS THAT PEOPLE WOULD GET HERE IN ORDER TO ENJOY TOURISM
RIGHT
SO LIKE THE AIRLINES, I KNOW THAT WE'VE FACILITATED A NUMBER OF PUBLIC CONVERSATIONS AND CONVENTIONS ON ECOTOURISM
AND SO I'M JUST WONDERING HOW THE TWO SHOPS TALK TO EACH OTHER
I CAN TAKE AN INITIAL STAB AT THAT
I THINK YOU'VE HEARD OUR DEPARTMENT REALLY EMPHASIZE RESPONSIBLE TOURISM
THAT'S SOMETHING THAT PROBABLY WE WEREN'T TALKING ABOUT SEVERAL YEARS AGO
BUT IT'S OBVIOUSLY VERY IMPORTANT
IT'S BECOMING REALLY, I THINK, THE SET OF ETHICS THAT SHOULD GUIDE OUR MARKETING AND PROMOTIONS EFFORTS
WE SHOULD BE GUIDING PEOPLE TO RESPONSIBLY TRAVEL AND TO THOSE ECOTOURISM DESTINATIONS AND AREAS WHERE THEY ARE RESPONSIBLY MANAGED
AND YET WE CAN SHOW OFF THE BEST OF WASHINGTON STATE
AND SO THIS IS A WORK IN PROGRESS
WE PUT MORE EMPHASIS INTO OUR GRANT PROGRAMS ON THIS LEVEL
WE'RE CERTAINLY TRYING TO MARKET AND POSITION OURSELVES AS ECOLOGICALLY ORIENTED AND RESPONSIBLE AS A STATE AND AS A PORT
BUT THERE'S MORE WORK TO DO
AND I'D LIKE TO TURN IT OVER TO SANDY TO JUST PROVIDE A FEW COMMENTS TOO
I THINK SANDY KILROY, A SENIOR DIRECTOR OF ENVIRONMENT AND SUSTAINABILITY
IT'S A GREAT QUESTION AND ONE OF THE KEY STRATEGIES FOR OUR ENVIRONMENTAL PROGRAM AND OUR ULTIMATE STRATEGY AGAINST CLIMATE CHANGE AND GREENHOUSE GAS REDUCTION IS REALLY TO TRANSFORM THE INDUSTRIES
RIGHT
IT'S LOOKING HOLISTICALLY AT AVIATION AND MARITIME LIKE CRUISE AND SAYING HOW ARE WE GOING TO TRANSFORM THOSE INDUSTRIES TO REMOVE THOSE POLLUTANTS FROM THEIR OPERATIONS
SO I WOULD SAY IT KIND OF MOVES IN PARALLEL
THERE'S DIFFERENT STRATEGIES AND TOOLS THAT WE USE TO ADDRESS REDUCING POLLUTANTS OVER TIME
BUT THE OVERALL KEY ONE IS WE WANT TO CREATE CLEAN FUELS AND A CLEAN TRANSITION TO THESE INDUSTRIES
AND SO I GUESS THAT'S WHAT I WOULD SAY IS HOW THEY DOVETAIL A LITTLE BIT
SO IT'S NOT KIND OF A ONE OR THE OTHER TYPE OF SITUATION
I THINK IT'S SQUARELY WITHIN OUR MISSION TO BE ABLE TO PROMOTE THE EQUITABLE AND SUSTAINABLE MOVEMENT OF PEOPLE AND GOODS OF OUR ECONOMY
WHAT'S AN EXAMPLE OF HOW AN INTERNATIONAL TRAVELER COULD BE A PROACTIVE CONTRIBUTOR TOWARDS SUSTAINABILITY EFFORTS THROUGH TRAVELING? WELL, ANOTHER GREAT QUESTION
ONE VERY PRACTICAL WAY IS THE INDIVIDUAL CAN UTILIZE PROGRAMS LIKE WE HAVE, LIKE THE GOOD TRAVELER PROGRAM TO PURCHASE OFFSETS TO THEIR CURRENT TRAVEL AS WE LOOK TO TRANSITION FUELS OVER THE LONG TERM
SO THAT'S SOMETHING THAT AN INTERNATIONAL TRAVELER OR ANY TRAVELER COMING THROUGH SEATAC IN OR OUT CAN USE AS THEY LOOK AT THEIR OWN CARBON FOOTPRINT
I MEAN, THAT SOUNDS LIKE A GOOD IDEA AND WILDLY AMBITIOUS
BUT ARE INTERNATIONAL TRAVELERS ACTUALLY PARTICIPATING IN A PROGRAM LIKE THAT AT SEATAC AIRPORT? I WOULD HAVE TO GET THE DATA ON EXACTLY INTERNATIONAL TRAVELERS, BUT OUR INFORMATION RIGHT NOW ON THE GOOD TRAVELER PROGRAM THAT WE UTILIZE AT SEATAC, THAT SEATAC TRAVELERS ARE THE HIGHEST USERS OF THAT PROGRAM NATIONALLY IN THE AIRPORTS THAT USE IT
SO OUR CONTINUATION OF HELPING TO PROMOTE THAT WILL BE ONE STEP IN THAT DIRECTION
SO YOU'RE TELLING ME THE INTERNATIONAL TRAVELERS THAT ARE ACTUALLY COMING THROUGH OUR GATEWAY ARE BUYING, THEY'RE GIVING MONEY TOWARDS A PROGRAM THAT ADVANCES SUSTAINABILITY AND TRANSFORMING OUR TRANSPORTATION SECTOR
I'LL NEED TO GET THE DATA ON HOW MUCH IS DOMESTIC VERSUS INTERNATIONAL, BUT WE'LL SEE IF WE CAN GET THAT SPLIT
WHAT CONCOURSE DO MOST INTERNATIONAL TRAVELERS COME THROUGH? THAT'S AN AVIATION QUESTION
SOMETIMES IT DEPENDS IF THEY CLEAR CUSTOMS FIRST
IT DEPENDS ON DIFFERENT
THE ANSWER IS A YES
WHERE IS THE PROGRAM LOCATED? SO THERE'S A COUPLE OF PLACES
THERE IS A KIOSK, I THINK, IN THE A TERMINAL, AND THERE'S ALSO A WEBSITE THAT YOU CAN USE AND SIGNAGE IN DIFFERENT PLACES THROUGHOUT THE AIR
SO I AM HEARING THAT INTERNATIONAL TRAVELERS COULD POSSIBLY BE A TARGET AUDIENCE TO BE ABLE TO PARTICIPATE IN THAT PROGRAM
CORRECT
OKAY
SO NOW LET'S TALK ABOUT THE PUGET BREAKDOWN
BECAUSE IF WHAT I CARE ABOUT IS EQUITY, THEN I CARE ABOUT WHERE THIS MONEY IS BEING SPENT
YOU'RE TELLING ME THAT WITHOUT APPROVAL OF THIS BUDGET ASK THAT $0 ARE GOING TO BE TARGETED TOWARDS TRAVELERS FROM ASIA OR FRANCE? NO, I BELIEVE THE BUDGET BREAKDOWN SHOWS THAT WE ARE INVESTING NEW FUNDING IN ASIAN MARKETS ONLY WITH APPROVAL
WITH APPROVAL
WITH APPROVAL
RIGHT
CORRECT
SORRY, I DIDN'T CAPTURE YOUR QUESTION
THERE WOULD BE SOME BASIC FOUNDATIONAL EFFORTS THERE THAT COULD FALL WITHIN THAT LAST BUDGET LINE ITEM
THERE OF TRADE SHOWS, SALES MISSIONS, FAM TRIPS, THERE'S A LINE FOR THAT
BUT AS FAR AS IN MARKET REPRESENTATION OR SPECIFIC PROJECTS WITH AGENCIES IN THOSE MARKETS THAT'S NOT CURRENTLY IN THE PUGET
SO ARE WE BUDGETING THE PIECE OF TOURISM THAT IS SQUARELY WITHIN OUR PURVIEW, WHICH IS CRUISE BUDGETING FOR ADVERTISEMENT OF CRUISE OR ARE WE BUDGETING FOR BROADER STATEWIDE TOURISM? WE HAVE A CRUISE FOCUS BUT DEFINITELY WE HAVE AN INTEREST IN DRIVING VISITATION THROUGHOUT THE ENTIRE STATE
AND THAT'S PART OF MY CHARGE HERE TO WORK WITH THESE ORGANIZATIONS TO DO THAT
ARE YOU WORKING WITH SOME OF THE INLAND PORTS OR OTHERS, OTHER ORGANIZATIONS STATEWIDE? I HAVE NOT PERSONALLY MADE CONTACT WITH EVERYONE YET
STILL RELATIVELY NEW HERE
BUT I'M WORKING MAINLY MY CONTACTS HAVE BEEN WITH STATE OF WASHINGTON TOURISM AND VISIT SEATTLE AND SOME OF THE OTHER DMOS THROUGHOUT THE REGION CONTINUING TO GROW IN THIS ROLE
BUT OUR FOCUS HAS BEEN ON DRIVING THAT VISITATION FROM THESE MAJOR MARKETS AND THE BEST WAY WE CAN DO THAT IS WITH SWT AND VISIT SEATTLE
OKAY, AND THEN WHY ARE WE ADVERTISING, SPENDING PUBLIC FUNDS TO ADVERTISE FOR AN INDUSTRY THAT HAS RECOVERED? WELL, POST PANDEMIC, IT HASN'T FULLY RECOVERED AND YOU ALWAYS NEED THESE EFFORTS IN ORDER TO REMAIN COMPETITIVE IN THE MARKET
SO IT'S NOT SOMETHING THAT WILL GO AWAY
BUT AS YOU SAW, INTERNATIONAL ARRIVALS WERE STILL DOWN 24% AND THESE ARE THE INTERNATIONAL VISITORS THAT STAY LONGER AND SPEND MORE, MORE OF AN IMPACT, MORE ROI ON THESE INTERNATIONAL VISITORS
SO THAT'S WHY IT CONTINUES TO BE A FOCUS AND THE LOWEST BE A KEY PART OF THE TOURISM ECONOMY
AND IF WE AREN'T FOCUSED ON THAT, WE WILL MISS OUT ON THAT TO COMPETING DESTINATIONS
SO THIS MARKETING I'M HEARING YOU SAY IS PRIMARILY FOCUSED TOWARDS CRUISE AND NOT FOR HOW WOULD TRAVELERS COMING IN FOR THINGS LIKE THE WORLD CUP OR HOW ARE THEY GOING TO BENEFIT FROM THIS
I ACTUALLY THINK THAT WE ARE MARKETING THE ENTIRE STATE OF WASHINGTON TOURISM OPPORTUNITIES
AND WHAT WE'RE GOING TO DO IS ADD A SUGGESTIVE SALE AROUND CRUISE AND STAY
WE CREATE A BROCHURE AND MARKET COLLATERAL MATERIALS AROUND CRUISE AND STAY OPPORTUNITIES
WE WILL CONTINUE TO DO THAT
WE WILL SUPPORT OUR STATE PARTNER TO DO THAT
BUT THE OVERALL EMPHASIS IS REALLY THAT WASHINGTON STATE IS OPEN FOR VISITATION AND THAT'S REALLY WHAT THE MARKETING MESSAGE IS IN A BROAD MARKETING MESSAGE I THINK IS APPROPRIATE AROUND FOLKS KNOW WHAT THAT FOLKS ARE TRAVELING VIA CRUISE
WHAT THIS PROMOTION DOES IS IT LETS FOLKS KNOW ABOUT WHERE THEY ABOUT STAY OPPORTUNITIES ASSOCIATED WITH CRUISE OR ARE YOU ALSO TRYING TO PROMOTE CRUISE AS AN OPTION FOR TRAVEL? IS THIS FOR LOCAL, FOR HOSPITALITY? WILL HOSPITALITY ACTUALLY SEE BENEFIT FROM THIS? YEAH, WE'RE MAINLY FOCUSED ON THOSE OVERNIGHT NAYS THROUGHOUT WASHINGTON STATE
THROUGHOUT WASHINGTON STATE
OKAY, ARE THOSE LIKE MAJOR CHAINS OR ARE THESE SMALL? MOM AND POP CAN BE ALL OF THE ABOVE
OKAY, SO BY WORKING WITH THE STATE OF WASHINGTON
WE'VE USED THE TERM DESTINATION MARKETING ORGANIZATIONS
AND THAT'S THE VISIT SEATTLE'S, VISIT YAKIMA, VISIT WINNACHEE, VISIT SPOKANE, ALL OVER THE STATE AND IT'S THROUGH THAT NETWORK
THAT'S WHAT I UNDERSTOOD WHEN WE RECEIVED THIS BRIEFING BEFORE
THAT'S WHAT I'VE ALWAYS UNDERSTOOD, THAT TOURISM IS AROUND TOURISM BROADLY, NOT JUST AROUND CRUISE
SO THAT'S A CONCERNING THIS IS BROAD TOURISM PROMOTION, RIGHT? YEAH
AND IF YOU LOOKED AT OUR SCOPE OF WORK WITH AUSTRALIA, IT'S BROAD TOURISM ABOUT SIX BULLETS AND THEN THERE IS A MENTION OF PROMOTING CRUISE DOWN AT THE BOTTOM
OKAY
IS THERE ALSO AN AWARENESS CAMPAIGN ASSOCIATED WITH THIS WITH RECRUITMENT FOR BEST PRACTICES FOR SUSTAINABLE TOURISM THAT WE IDENTIFIED AS THE PORT THAT IS PART OF THE WASHINGTON STATE BRAND AND PART OF THE MARKETING MESSAGE WE'RE SENDING? NO FURTHER QUESTIONS
THANK YOU, COMMISSIONER HASEGAWA, ANY OTHER QUESTIONS? COMMISSIONER MOHAMED, THANK YOU FOR THOSE QUESTIONS
COMMISSIONER HASEGAWA
SOME OF THEM I HAD IN MIND ACTUALLY, DIRECTOR KILROY, IF YOU COULD STAY THAT WOULD BE GREAT
SO MY QUESTION IS SPECIFICALLY AROUND THIS CONTRACT AND THE PARTNERSHIP WITH THE STATE OF WASHINGTON TOURISM, DO YOU SEE THIS AS IN ALIGNMENT WITH OUR CENTURY AGENDA GOALS AND DO YOU SEE ALIGNMENT WITH OUR CLEAN AIR STRATEGY OR DO YOU FEEL LIKE THIS IN ANY WAY IS UNDERMINING THAT OR ARE WE ALIGNED? I WANT TO SAY WE'RE ALIGNED BECAUSE OUR OVERALL STRATEGY IS TO DECARBONIZE BOTH THE AVIATION AND MARITIME INDUSTRIES AS A WHOLE
SO I DON'T SEE THEM AS MISALIGNED THOUGH
WE HAVE WORK AHEAD OF US, RIGHT? I MEAN, WE HAVE A LOT OF WORK AHEAD OF US USING DIFFERENT STRATEGIES AND DIFFERENT TOOLS TO ADDRESS HOW WE DECARBONIZE BOTH AVIATION AND THE MARITIME SECTORS
AND SO I THINK THAT THE TOURISM PLAN THAT'S LAID OUT I DON'T SEE AS A BARRIER TO ACHIEVING THOSE GOALS
WE SHOULD BE MOVING IN CONCERT WITH THOSE
AND I THINK TO COMMISSIONER HASEGAWA'S POINT THERE'S WAYS FOR US TO UTILIZE THOSE TRAVELERS AS ADVOCATES, AS EDUCATIONAL OPPORTUNITIES AND ADVOCATES TO RAISE AWARENESS AND ENGAGE IN HELPING US MOVE THOSE SOLUTIONS FORWARD BECAUSE SOME OF THEM WILL TAKE POLITICAL, PUBLIC AND POLITICAL ACCEPTANCE
GREAT
AND DIRECTOR KILROY AND DIRECTOR MCFADDEN, COULD YOU GUYS SHARE JUST A LITTLE BIT ABOUT YOUR DEPARTMENT'S PARTNERSHIP AND WORKING TOGETHER ON PROMOTING SUSTAINABLE TOURISM AND WHAT THAT LOOKS LIKE? MAYBE FOR ME, I HEAR IT ALL THE TIME
WE HEAR ABOUT SUSTAINABLE TOURISM GOALS AND HOW THAT ALIGNS, BUT I THINK MAYBE THE PUBLIC DOESN'T ALWAYS HEAR THAT
SO I'D JUST LOVE TO HEAR YOU GUYS DESCRIBE THAT
I'LL PICK UP THE OTHER HALF AND SAY, YEAH, WE ARE ALIGNED
AND PART OF THAT IS WE'RE EXCITED ABOUT THE GREEN CRUISE CORRIDOR
THAT'S ABSOLUTELY INSTRUMENTAL TO THE FUTURE OF A LINE OF BUSINESS WE HAVE
IT'S SOMETHING THAT ATTRACTS TOURISM AND IT'S SOMETHING WHERE WE SEE BENEFITS FROM THAT EFFORT AND FULLY SUPPORT IT
IF I LOOKED AT OUR TOURISM GRANT PROGRAM, WE PUT MORE AND MORE MONEY OUT EVERY
YEAR FOR RESPONSIBLE TOURISM OR ECOTOURISM
AND WE REALLY GOT THAT IDEA IN GENESIS FROM OUR STRONG COMMITMENT TO SUSTAINABILITY AND JUST LITERALLY WROTE IT IN AS AN UNDERWRITING PRACTICE FOR OUR GRANTS
AND SO THERE'S A COUPLE EXAMPLES
IF I FLIP THE PAGE, THERE'S A LOT OF THINGS OUTSIDE OF TOURISM, ESPECIALLY ON BUSINESS DEVELOPMENT, WHERE WE'RE DEEPLY ALIGNED
IF YOU'RE LOOKING AT HYDROGEN OR CLEAN ENERGY THAT NEEDS A SPOT AT THE PORT, AND THAT BRINGS ECONOMIC DEVELOPMENT AND REAL ESTATE TO THE TABLE
SO WE'RE DEEPLY EMBEDDED AND WORKING TOGETHER ON A VARIETY OF LEVELS
COMMISSIONER CALKINS, IN THE MEMO YOU MENTIONED USING ROI AS A METRUCK FOR THE VALUE OF CONTRIBUTING THIS
CAN YOU TELL ME WHAT YOU DETERMINED THE ROI OF THIS 800,000 WOULD BE AND WHAT YOU FELT LIKE WAS A THRESHOLD THAT IT NEEDED TO PASS TO JUSTIFY IT
RIGHT
AND TRACKING IS TRADITIONALLY TOUGH IN THE TOURISM WORLD, BUT YOU CAN SEE WHERE DESTINATION MARKETING, YOU LOOK AT, LIKE BRAND USA, THEY SAY FOR EVERY DOLLAR THAT THEY PUT INTO DESTINATION MARKETING, OVER $20 IS RETURNED
SO THOSE ARE THE TYPE OF NUMBERS WE'RE HOPING TO ACHIEVE WITH OUR TRACKING
AND WE GET REPORTS FROM EACH OF OUR IN MARKET REPS BASED ON WE'LL GET THOSE FOR MEDIA
WE'LL GET THE VALUE OF THE MEDIA
SO WE CAN SEE THOSE TYPES OF NUMBERS
AND I ACTUALLY HAVEN'T SEEN THEM HERE, BUT THE VISITOR SPENDING NUMBERS, I HAVEN'T SEEN THOSE SPECIFICALLY FOR SEATTLE
BUT THOSE NUMBERS CAN BE 200, $300 A DAY PER VISITOR
AND BASED ON THE NUMBER OF VISITORS THAT COME TO THIS REGION, THE ROI IS THERE FOR AN INVESTMENT OF $400,000
THAT COULD BRING MILLIONS
I DON'T WANT TO THROW A NUMBER OUT THERE
IF THE ROI WERE TWO TO ONE, LET'S SAY THAT'D BE PRETTY I THINK ANYBODY WOULD SAY I WOULD PUT MY PENSION IN A GUARANTEED TWO TO ONE RETURN
IT'S 21
THAT WOULD BE REMARKABLE
YES
ANYBODY, ANY BUSINESS OWNER WOULD SAY, IF THERE'S A BUSINESS LINE WHERE IF I SPEND $20 ON MARKETING, OR ONE DOLLARS ON MARKETING AT $20 IN REVENUE, THAT'S PROBABLY A PRETTY GOOD TURNAROUND
AND IN MY EXPERIENCE, THAT'S WHERE THAT NUMBER HAS BEEN
I HAVEN'T SEEN THOSE NUMBERS HERE
I THINK WHAT I'M ALSO HEARING IS THIS CONCERN ABOUT, ARE WE JUST CREATING A SITUATION WHICH WE'RE FURTHERING ENVIRONMENTAL DAMAGE THROUGH AN INDUSTRY THAT IS INTRINSICALLY BAD FOR THE ENVIRONMENT? THAT IS AN INTERNAL CONVERSATION WE NEED TO HAVE AND HAVE BEEN ENGAGED IN FOR YEARS NOW
MY PERSONAL POSITION ON THIS IS THAT WE ARE, AS AN INSTITUTION, WORKING TO LEAD RESPONSIBLE TOURISM, TO MODEL THE WAY
AND IF WE UNILATERALLY DECIDE WE'RE NO LONGER GOING TO PARTICIPATE IN TOURISM, THAT SENDS A VERY STRONG MESSAGE
AND I THINK THERE ARE STRONG AND VERY INTELLIGENT ARGUMENTS FOR THAT AS AN ENVIRONMENTALIST, TO SAY WE ARE SIMPLY NO LONGER GOING TO PARTICIPATE IN THAT PARTICULAR THING
I HAVE NOT PERSONALLY COME TO THAT CONCLUSION
I BELIEVE THAT THE LONGER TERM BETTER APPROACH IS TO SAY WE NEED TO CREATE A SCENARIO IN WHICH THE ABILITY FOR AN INDUSTRY TO ADOPT THE HIGHEST ENVIRONMENTAL STANDARDS FOR ITSELF IS A BETTER POSITION
WHICH IS WHY I'M NOT INTERESTED IN MAKING IT HARDER FOR TOURISTS TO COME TO SEATTLE
WHAT I DO WANT TO DO IS ENSURE THAT THE COSTS OF THEIR TOURISM IS ACCOUNTED FOR IN THE COSTS THAT WE CHARGE
AND SO IF THAT MEANS THAT WE NEED TO CHARGE A HIGHER TARIFF RATE AT OUR TERMINALS TO COVER THE COSTS OF PLUGGING IN THE SHIPS OR TO ACCOUNT FOR THE WORK THAT WE NEED TO DO TO INCREASE IMO STANDARDS FOR THE CRUISE SHIPS, TO INCREASE AVIATION STANDARDS FOR EMISSIONS, THEN WE SHOULD DO THAT
AND IT SHOULD BE THE TOURISTS, THE PASSENGERS WHO PAY THE PRICE OF THAT
BUT IF WE SHUT THAT ALL DOWN, WE LOSE THE VERY REVENUE THAT WE NEED TO BE ABLE TO THE RESOURCES THAT WE NEED TO MAKE THAT CHANGE
AND I KNOW THAT REASONABLE PEOPLE DISAGREE ON THIS POINT
THAT IS CURRENTLY WHERE I STAND ON THIS AND WHY I WILL KNOWING THAT THERE IS A POSITIVE ROI FOR THIS WHERE I'M GOING TO VOTE
THANK YOU
COMMISSIONER CALKINS
COMMISSIONER FELLEMAN
THANKS FOR THE PRESENTATION
AND I REALLY AM DELIGHTED BY THE FACT THAT WE'RE GETTING THIS ALIGNMENT BETWEEN THE THREE AGENCIES THAT ARE ALL IN THE SAME BUSINESS AND THAT WE'RE MORE AND MORE MARKETING THE ENVIRONMENTALLY RESPONSIBLE TOURISM COMPONENT OF IT
SO WE'RE ALL SINGING THE SAME SONG AND SETTING THE RIGHT SORT OF EXPECTATIONS FOR THE PUBLIC
WHO'S COMING HERE
IT'S NOT DISNEYLAND
IT'S ONE OF THE GREAT PLACES LEFT ON THE PLANET
AND YOU SHOULD COME HERE FIRST BY PACKING YOUR SENSE OF RESPONSIBILITY
THAT MESSAGE IS GETTING OUT
I'VE BEEN HELPING LEAD THAT EFFORT AND I'M DELIGHTED THAT PEOPLE ARE VERY MUCH ALIGNING WITH IT
BUT WE DO HAVE A FOUNDATIONAL PROBLEM IN THAT THE PORT OF SEATTLE IS DEALING WITH SHIPS AND PLANES
THESE ARE THE LAST TO DECARBONIZE THE HEAVIEST INDUSTRIES OUT THERE AND POSE THE GREATEST CHALLENGE
SO WE HAVE TO EMBRACE THAT CHALLENGE WHOLEHEARTEDLY
AND THE PROMOTION OF ALTERNATIVE FUELS IS LIKE THE ONE EASIEST TRANSITION THAT WE CAN MOVE TO AND CERTAINLY PUT THE AVIATION INDUSTRY SUSTAINABLE
AVIATION FUELS IS REALLY THE ONLY NEAR TERM OPTION THERE IS, ALTHOUGH PRODUCTION IS LAGGING BEHIND DEMAND
HOWEVER, WE'RE WORKING ACTIVELY ON THAT EFFORT
SO IT'S NOT LIKE WE'RE IGNORING THE PROBLEM
IN FACT, WE'RE LEADING ON THAT ISSUE
AND WITH REGARDS TO HAVING INFRASTRUCTURE AT THE WATERFRONT, RIGHT? WE HAVE BEEN ONE OF THE FIRST TO PROVIDE SHORE POWER AND WE EXPAND SHORE POWER AND WE'RE ACTIVELY PURSUING GRANTS AND OPPORTUNITIES TO FURTHER OUR SHORE POWER EFFORTS
SO IT'S NOT LIKE WE'RE IGNORING THIS CHALLENGE
IT IS PART OF OUR JOB THOUGH
NOW, THE IDEA THAT WE HAVE THE THING LIKE GOOD TRAVELER PROGRAM, JUST DOING CREDITS IS A GOOD THING
IT'S AN INTERIM STEP
BUT ONE OF THE THINGS I'VE BEEN PURSUING AND WANTING TO PURSUE FURTHER IS TO BETTER PROMOTE IT
I'M DELIGHTED TO HEAR THAT WE HAVE A HIGHER PERCENTAGE THAN OTHER PLACES, BUT I WANT TO HAVE THOSE BENEFITS TO BE GENERATED LOCALLY, BECAUSE I THINK IN ADDITION TO THE CARBON SEQUESTRATION OF TREES AND THINGS LIKE THAT, I'D LIKE TO SEE THE COMMUNITIES AROUND THE AIRPORT BENEFIT FROM THAT
AND SO I KNOW THAT'S NOVEL AND I KNOW IT'S A NATIONAL PROGRAM, BUT I'D LIKE TO SEE IF WE CAN'T MANAGE A WAY TO SHOW THAT THOSE IMPACTS ARE NOT JUST CLIMATOLOGICAL, BUT CONVENTIONAL POLLUTANTS AS WELL
BUT I THINK ULTIMATELY, THIS WHOLE IDEA OF PROMOTING STATEWIDE TOURISM FOR ME WAS I DIDN'T WANT JUST WASHINGTON STATE PROMOTE, COME HERE TO GO TO ALASKA
I WANT YOU TO COME HERE TO SPEND MONEY HERE, AND I WANT YOU TO SOME OF THE BEST PLACES LEFT ON THE PLANET ARE IN RURAL WASHINGTON
SO THOSE DOLLARS GO THAT MUCH FURTHER WHEN YOU SPEND IT IN THOSE COMMUNITIES
BUT IF YOU GO AND JUST SEND MORE PRESSURE ON THOSE COMMUNITIES, TRIBAL LANDS, THERE'S ALREADY A TREMENDOUS AMOUNT OF PUSHBACK RIGHT NOW
EVEN COMMUNITIES THAT WANT TO HAVE TOURISM DON'T WANT TO HAVE TOO MUCH TOURISM, AND CERTAINLY THE ENVIRONMENT CAN'T TAKE IT EITHER
SO WE HAVE TO WHOLLY TAKE RESPONSIBILITY FOR THE ADDITIONAL PRESSURE WE CREATE
AND I'M DELIGHTED THAT THIS YEAR WE ARE SUPPORTING THE BUDGETS OF SOME OF THE NATURAL RESOURCE AGENCIES WHO ARE THE STEWARDS OF THE LANDS THAT WE'RE DIRECTING PEOPLE TO
SO IT IS REALITY INCREASING PRESSURE, BUT WE ALSO HAVE TO INCREASE OUR SENSE OF RESPONSIBILITY
AND I'M DELIGHTED THAT THE PORT IS TRYING TO STEP UP IN THAT WAY
GREAT
THANK YOU
COMMISSIONER FELLEMAN
COMMISSIONER HASEGAWA, I HAVE A FOLLOW UP QUESTION, STARTING WITH A THOUGHT
I AM SO SADDENED BY THE CONTINUED RISE IN ANTI ASIAN SENTIMENT HERE AT HOME, INCLUDING WITHIN KING COUNTY AND WASHINGTON STATE
AND I THINK THAT WHAT THE WORLD NEEDS IS FUNDAMENTAL HUMAN CONNECTION
AND I THINK THAT OUR ROLE IN THE PORT IS IMPORTANT IN BEING ABLE TO HELP FACILITATE A GLOBAL COMMUNITY
WE ARE THE CLOSEST PORT TO ASIA
AND SO WHEN I'M LOOKING AT THIS BUDGET, IT SAYS $0 WITHOUT APPROVAL OF THIS
ASKED TOWARDS MARKETING IN JAPAN, KOREA, AND CHINA, IT RAISES A COUPLE OF QUESTIONS FOR ME
ONE IS, DO YOU SEE THE RISING TENSIONS BETWEEN THE UNITED STATES AND CHINA AS HAVING A ROLE IN IMPACTING TRAVEL BETWEEN THE TWO COUNTRIES? AND DO YOU SEE A GREATER NEED FOR INTENTIONAL INVESTMENT INTO ASIA MARKETS SPECIFICALLY? YES, I KNOW THE IMPORTANCE OF THE ASIAN MARKETS, ESPECIALLY JAPAN, SOUTH KOREA, WHICH WE'RE LOOKING TO LEAD OFF WITH HERE
I WISH WE HAD ENOUGH BUDGET TO DO ALL THESE EFFORTS IN EACH ONE OF THESE COUNTRIES, AND ESPECIALLY BEING, AS YOU MENTIONED, THE CLOSEST AIRPORT, WE SHOULD BE WELCOMING
RIGHT
AND THAT'S PART OF WHAT WE WANT TO DO AS OUR WHOLE PROGRAM IS, AGAIN, DISPLAY THE VALUES OF WASHINGTON STATE AND MAKE SURE THAT WE'RE WELCOMING TO VISITORS FROM EVERYWHERE
AND THAT MEANS WORKING WITH THE HOSPITALITY INDUSTRY, WORKING WITH HOTELS, SO THAT THEY KNOW HOW TO BE WELCOMING TO ALL DIFFERENT PEOPLE FROM EVERYWHERE, PEOPLE FROM ALL WALKS OF LIFE
AND OBVIOUSLY BEFORE THE PANDEMIC, JAPAN, CHINA, SOUTH KOREA WERE HUGE MARKETS
AND THEY'VE JUST BEEN A LITTLE SLOWER TO COME BACK, A LITTLE SLOWER TO MOVE UP THAT PRIORITY LIST FOR US BASED ON THE CRITERIA THAT WE HAVE
BUT THEY ARE SIGNIFICANT MARKETS THAT WILL COME BACK
AND WE NEED TO MAKE SURE THAT WE REESTABLISH WASHINGTON STATE AND SEATTLE AS A TOP OF MIND DESTINATION FOR THEM
OTHERWISE, THEY'LL GO TO OTHER DESTINATIONS THAT ARE MORE WELCOMING
OKAY, SO I THINK THAT THAT IS CRITICAL
I THINK THAT US BEING INTENTIONAL ABOUT MARKETING OURSELVES AND TELLING OUR STORY AND SHOWCASING THE HUMANITY, THE INTRINSIC VALUE OF WHO WE ARE IN THE SPACE THAT WE'RE IN TO ASIA, I THINK HAS TREMENDOUS VALUE
BUT CAN YOU HELP ME MAKE SENSE OF THE BUDGET? SO, WITH APPROVAL, YOU'RE LOOKING FOR $690,000 TO BE ABLE TO SPEND ON THIS, BUT YOU'RE ASKING US TO APPROVE 800,000
WHAT HAPPENS TO THE OTHER 110K? I'M SORRY, COULD YOU IF YOU REFER TO PAGE NINE OF THE PRESENTATION, IT SAYS THAT WITH APPROVAL, IT'LL BE A TOTAL OF 690,000 WITH A BREAKDOWN TO TARGET COUNTRIES THAT WILL OKAY, SO ONE, I THINK THAT'S ANNUAL VERSUS THIS IS A TWO YEAR AGREEMENT
ADDITIONAL 400K FOR THE NEXT TWO YEARS
UNDERSTOOD
OKAY
THAT'S ANNUAL
OKAY, VERY GOOD
THANK YOU FOR THAT CLARIFICATION
NO FURTHER QUESTIONS
THANK YOU VERY MUCH
WE'LL NOW CONSIDER ITEM EIGHT FOR A VOTE
DO I NEED A MOTION IN A SECOND? CAN I GET A MOTION IN A SECOND? SO MOVED
SECOND
GREAT
COMMISSIONER
COMMISSIONER
COMMISSIONER
CLERK HART, PLEASE CALL THE ROLL
THANK YOU
THANK YOU
ANYONE? COMMISSIONER CALKINS
AYE
THANK YOU
THANK YOU
COMMISSIONER FELLEMAN
AYE
THANK YOU
COMMISSIONER HASEGAWA
AYE
THANK YOU
COMMISSIONER MOHAMMED
AYE
THANK YOU
AND COMMISSIONER CHO
AYE
THANK YOU
FIVE AYES, ZERO NAYS FOR THIS ITEM
EXCELLENT
THE MOTION PASSES
THANK YOU VERY MUCH, DAVE AND NICK
ALL RIGHT, MOVING ON IN THE AGENDA, WE HAVE ONE NEW ITEM OF BUSINESS TODAY
CLERK HART, PLEASE READ THE FIRST ITEM INTO THE RECORD
WE'LL THEN HEAR FROM EXECUTIVE DIRECTOR METRUCK TO INTRODUCE THE ITEM
THANK YOU
THIS IS AGENDA ITEM TEN
A AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO ADVERTISE AND AWARD UP TO THREE MAJOR PUBLIC WORKS CONTRACTS TO EXECUTE UTILITY AGREEMENTS FOR THE RELOCATION OF UTILITIES, TO TRANSFER $527,000 OF BUDGET FROM CIPC 800862 TERMINAL SECURITY ENHANCEMENTS TO SUPPORT THE INSTALLATION OF SECURITY BOULEVARDS
TO TRANSFER UP TO $3,860,000 OF BUDGET FROM CIPC EIGHT 100:42 LANDSLIDE PAVEMENT PROGRAM TO SUPPORT ADDITIONAL PAVEMENT REHABILITATION AND TO AUTHORIZE AN ADDITIONAL $73,600,000 FOR THE TOTAL PROJECT
AUTHORIZATION OF $89,500,000 FOR THE WIDEN ARRIVALS ROADWAY PROJECT AT SEATTLE TACOMA INTERNATIONAL AIRPORT
COMMISSIONER, THE WIDEN ARRIVALS PROJECT IS CRITICAL TO RELIEVING HIGH LEVELS OF CONGESTION ON THE MAIN ACCESS TO SEATTLE TACOMA INTERNATIONAL AIRPORT
ALL OF US ARE FAMILIAR WITH THE FREQUENT TRAFFIC BACKUPS THAT OFTEN EXTEND BACK TO STATE ROAD 518 AND EVEN I FIVE
TODAY'S ACTION WILL BE THE FOURTH TIME THE COMMISSION WILL CONSIDER AND GET BRIEFED AND TAKE A VOTE ON THIS IMPACTFUL PROJECT
THESE INVESTMENTS WILL CREATE DEDICATED ACCESS TO THE PARKING GARAGE AND GROUND TRANSPORTATION CENTER WITH SPECIFIC BENEFITS TO INDEPENDENT TAXI AND TRANSPORTATION NETWORK COMPANY DRIVERS, AS WELL AS OTHER COMMERCIAL GROUND TRANSPORTATION SERVICES LIKE COURTESY VANS AND SHUTTLES FOR LOCAL PARKING OPERATORS AND HOTELERS
IN ADDITION, IT WILL REDUCE IMPACTS TO SURROUNDING LOCAL COMMUNITIES BY EASING THE CONGESTION THAT CONVERT TRAFFIC ONTO INTERNATIONAL BOULEVARD
WHILE THIS PROJECT IS A ROADWAY ENHANCEMENT IN ITSELF, IT ALSO SERVES AS AN ESSENTIAL ENABLING PROJECT IN PURSUIT OF OUR BROADER GROUND TRANSPORTATION ACCESS PLAN
AS PART OF THIS PRESENTATION, WE'LL DISCUSS WAYS TO ULTIMATELY REDUCE SINGLE OCCUPANCY VEHICLE TRIPS TO THE AIRPORT
WE BELIEVE WE CAN AND SHOULD PURSUE OUR CRITICAL ENVIRONMENTAL PRIORITIES AS WE ALSO ADDRESS IMPORTANT CUSTOMER SERVICE NEEDS
THIS PROJECT IS PART OF OUR UPGRADE SEA EFFORT AND THE PRESENTERS THIS AFTERNOON ARE RF GAUSS, CHIEF OPERATING OFFICER AT THE AIRPORT DIRECTOR, AND THE FIRST TIME RF HAS BEEN WITH US TODAY AT THE COMMISSION
WELCOME BACK TO THE PORT
AND ALSO I HAVE OTHER SPEAKERS
I KNOW
PETER LINDSAY HERE
SENIOR MANAGER, AIRPORT OPERATIONS
BUT I GUESS ALSO WE HAVE HEATHER BORNHURST AND ADRIAN DOWNE
AND I DON'T THINK LANCE IS JOINING US THIS AFTERNOON, CORRECT? SO WITH THAT, I'M GOING TO TURN IT OVER TO RF
WELCOME RF, BACK TO THE PORT
THANK YOU
GOOD AFTERNOON
COMMISSION AND EXECUTIVE DIRECTOR
FOR THE RECORD, AGAIN, RF GAUSS COO AT SEATAC AIRPORT
AND TODAY YOU GET THREE FOR THE PRICE OF ONE
SO I'M JUST GOING TO INTRODUCE THIS PRESENTATION AND THEN HAND IT OVER TO PETE TO MY LEFT OVER HERE
SO FIRST SLIDE PLEASE
SO ON THE LEFT HERE, YOU SEE MANY PARTS TO A PUZZLE OR PIECES, AND ALL OF THESE ARE IMPORTANT FOR US TO DELIVER OUR LONG TERM VISION FOR SEATAC AIRPORT
BUT THEY CAN PRETTY MUCH BE SUMMARIZED BY THE ITEMS ON THE RIGHT THERE
IN TERMS OF IF WE CAN DELIVER THESE ITEMS, WE ARE PRETTY MUCH ACHIEVING MOST OF THE PIECES OF THE PUZZLE
AND IF I COULD JUST QUICKLY RECAP, WE'RE CURRENTLY A FOUR STAR SKYTRACK RATED AIRPORT AND WE'RE AIMING TO BE A FIVE STAR
WE WANT TO HAVE A MAXIMUM 75 MINUTES CONNECTION TIME TO GET TO FLIGHT AND THAT WOULD INCLUDE A 45 MINUTES MAXIMUM FROM THE CLOCK TOWER ON THE FREEWAY, AIRPORT FREEWAY, TO THE GATE
AND THEN WE WANT TO RAISE OUR OVERALL LEVEL OF SERVICE FOR THE PORT TO AN OPTIMUM LEVEL
AND THEN WE WANT TO BE IN THE TOP 25 FOR AIRPORT RATINGS FROM KIND OF AN ACI SURVEY THAT'S GIVEN TO OUR CUSTOMERS
WE WANT TO BE IN THE TOP 25 OF THAT
AND THEN OF COURSE, VERY IMPORTANT THAT WE'RE GOING TO BE THE GREENEST AIRPORT IN THE COUNTRY
SO, THE NEXT SLIDE PLEASE
THE WIDENED ARRIVALS PROJECT HELPS US TOWARDS SPECIFICALLY ACHIEVING THREE STRATEGIC OBJECTIVES SET OUT BY THE COMMISSION AND ALIGNS WITH THEM ON THE CENTURY AGENDA
THE FIRST ONE, ADVANCING THIS REGION AS A LEADING TOURISM DESTINATION AND BUSINESS GATEWAY
SO THIS PARTICULAR PROJECT WILL MEET THE REGION'S AIR TRANSPORTATION NEEDS BY DELIVERING VITAL FACILITIES, INFRASTRUCTURE IN A SUSTAINABLE AND COST EFFECTIVE MANNER
SECONDLY, BE THE GREENEST AND MOST EFFECTIVE ENERGY EFFICIENT PORT IN NORTH AMERICA
THIS PROJECT WILL HELP US MEET OR EXCEED AGENCY REQUIREMENTS FOR STORMWATER LEAVING PORT OWNED OR OPERATED FACILITIES, AND FINALLY TO BECOME A MODEL FOR EQUITY, DIVERSITY AND INCLUSION
THIS WILL INCREASE OUR UTILIZATION ON WMBE AND DBE FIRMS AND ELIMINATE DISPARITY OF ACCESS TO OPPORTUNITIES
AND HERE WE'RE PARTICULARLY TALKING ABOUT THE GROUND TRANSPORTATION CONTRACTORS
AND WITH THAT, I WILL HAND IT OVER TO PETE TO GO INTO A BIT MORE DETAIL
THANK YOU, ARIF
AND FOR THE RECORD, PETER LINDSAY, SENIOR MANAGER, LANDSIDE OPERATIONS
THANK YOU, PRESIDENT CHO, COMMISSIONER EXECUTIVE DIRECTOR
NEXT SLIDE, PLEASE
I'M GOING TO SAY A FEW THINGS ABOUT GTAP GROUND TRANSPORTATION ACCESS PROGRAM
IT'S THE AIRPORT'S PROGRAMMATIC INITIATIVE TO SOLVE FOR A NUMBER OF POLICY ISSUES AROUND ENVIRONMENTAL EMISSIONS AND GREENHOUSE GAS EMISSIONS, ROADWAY CONGESTION, CUSTOMER CHOICE, AND SOCIAL EQUITY
THIS SLIDE MANY OF THE COMMISSIONER HAVE SEEN BEFORE
THIS IS OUR FRAMEWORK SLIDE THAT GUIDES US FROM OUR WORK TO ACTION, STARTING WITH THE PRINCIPLES THAT HAVE BEEN ADOPTED BY THIS COMMISSIONER PREVIOUSLY
AND I WANT TO FOCUS ON THE RIGHT HAND COLUMN HERE LOOKING AT GTAP AND THE CAPITAL PROJECTS
WIDEN ARRIVALS IS LISTED AS ONE OF THOSE STRATEGIES THAT WE'RE DISCUSSING TODAY AS JUST ONE OF THE MANY TOOLS, THE PIECES OF THE PUZZLE THAT ERA REFERRED TO THAT ALLOWS US TO MEET OUR GOALS, AND IN PARTICULAR, OUR GOALS RELATED TO MISSION REDUCTION
FOR INSTANCE, TNCS TAXIS AND PARKING ARE PREFERRED MODES IN SOME SENSE BECAUSE THEY HAVE LESS OF AN IMPACT FROM AN EMISSION STANDPOINT
AND SO, WHEN WE LOOK AT THIS IMPROVEMENT, THE IMPROVEMENTS THAT HEATHER WILL DESCRIBE, WE'RE LOOKING AT BETTER ACCESS FOR THESE MODES AND BETTER ACCESS FOR AYE
MODES, INCLUDING BUSES AND TRANSIT
SO WE ARE TRYING TO IMPROVE THE ACCESS AND THE CUSTOMER SERVICE RELATED TO THIS IN TERMS OF THAT 45 MINUTES CLOCK TOWER TO THE GATE METRUCK
AND WITH ALL THE PLANNING AND GOOD WORK WE'VE DONE IN ENGINEERING AROUND THIS PROJECT, I THINK WE'VE DEMONSTRATED THAT THAT COULD BE ACHIEVED
SO WITH THAT, I'M GOING TO TURN IT OVER TO HEATHER BORNHORST AND SHE'S GOING TO TALK SOME SPECIFICS ABOUT THE WIDENING ARRIVALS PROJECT
THANKS, HEATHER
THANK YOU, PETER
GOOD AFTERNOON, COMMISSIONERS AND EXECUTIVE DIRECTOR METRUCK
NEXT SLIDE, PLEASE
FOR THE RECORD, MY NAME IS HEATHER BORNHORST
I'M THE LANDSLIDE PROGRAM LEADER WITHIN AVIATION PROJECT MANAGEMENT
SO, WIDEN ARRIVALS IS A ROADWAY IMPROVEMENT PROJECT WITH THE LIGHT RAIL TRANSIT SYSTEM LOCATED IN THE MEDIAN OF OUR NORTHERN AIRPORT EXPRESSWAY
WE'LL BE WIDENING AND SHIFTING THE TERMINAL ROADWAY SYSTEM TO THE WEST IN ORDER TO PROVIDE TWO ADDITIONAL LANES, ONE FOR PARKING AND ONE FOR GROUND TRANSPORTATION
THE UTILITY INFRASTRUCTURE THAT IS LOCATED UNDER THE ROADWAY SYSTEM WILL ALSO BE RELOCATED AND PORTIONS THAT ARE AT THE END OF THEIR USEFUL LIFE WILL BE REPLACED
THE UTILITY INFRASTRUCTURE SYSTEMS INCLUDE POWER, COMMUNICATIONS, WATER, STORMWATER AND NATURAL GAS
THE NORTH RENTAL CAR TRANSIT CURB WILL BE RELOCATED FURTHER NORTH IN ORDER TO EXPAND THE UTILIZATION OF THE CURBSIDE
AT THE MAIN TERMINAL, WE GAIN APPROXIMATELY 200 LINEAR FEET
THE BRIDGE THAT IS NO LONGER IN USE BETWEEN DEPARTURES AND THE MAIN GARAGE WILL BE DEMOLISHED AND IN FACT IT HAS ALREADY BEEN COMPLETED
THE PROJECT WILL ALSO INCLUDE TYPICAL ROADWAY IMPROVEMENTS SUCH AS SIGNAGE, ILLUMINATION, INTELLIGENT TRANSPORTATION SYSTEM COMPONENTS, AS WELL AS LANDSCAPING AND IRRIGATION IMPROVEMENTS
THE LAST TWO SCOPE ITEMS, THE INSTALLATION OF THE SECURITY BOLTARDS AND ADDITIONAL PAVEMENT REHABILITATION ARE SCOPES OF WORK FROM OTHER PROJECT EFFORTS THAT WE WILL DELIVER AS PART OF THIS PROJECT IN ORDER TO REDUCE THE OVERALL COST TO THE PORT AND IMPACTS TO OUR CUSTOMERS, TENANTS, OPERATORS AND EMPLOYEES
NEXT SLIDE PLEASE
THIS EXHIBIT DEPICTS THE COMPLETED IMPROVEMENTS FOR THE PROJECT
NORTH IS TO YOUR RIGHT, THE TERMINAL IS ON THE LEFT SIDE OF THE SCREEN AND SOUTH 170 STREET IS ON THE RIGHT SIDE OF THE SCREEN
STARTING ON THE RIGHT SIDE YOU WILL SEE THE WIDENING IMPROVEMENTS AS WE HEAD SOUTH TOWARDS THE TERMINAL
WE HAVE IDENTIFIED THE AIRFIELD RETAINING WALL AND THE ROADWAY REALIGNMENT TO THE WEST, AS WELL AS THE RETAINING WALL ALONG ARRIVALS AND THE RENTAL CAR TRANSIT STOP
AS YOU CAN SEE, THE TWO ADDITIONAL LANES ARE PROVIDING DIRECT ACCESS FOR PARKING AND GROUND TRANSPORTATION
LANDSCAPING IMPROVEMENTS ARE INCLUDED THROUGHOUT THE PROJECT, BUT THIS EXHIBIT ONLY SHOWS THE LANDSCAPING IMPROVEMENTS TO BE COMPLETED AS PART OF OUR MAIN PROJECT EFFORT
THE AREAS IN BLACK REFLECT ONLY EROSION CONTROL TREATMENT AND I WILL TALK A LITTLE BIT LATER ABOUT THOSE AREAS AS FURTHER IN THE DISCUSSION
NEXT SLIDE PLEASE
SO WHY ARE WE DOING THIS PROJECT? IN THE EARLY 1970S, THE AIRPORT UNDERWENT A SIGNIFICANT EXPANSION THAT CONSTRUCTED THE TWO LEVEL TERMINAL ROADWAY SYSTEM THAT WE HAVE TODAY
THE ORIGINAL FACILITY WAS DESIGNED TO SUPPORT AN ACTIVITY LEVEL OF 25 MILLION ANNUAL PASSENGERS AND WE'VE EXTENDED ITS USE BY RELOCATING GROUND TRANSPORTATION SERVICES INTO THE MAIN GARAGE AND THE NORTHEAST GT LOT
WE'VE ALSO RELOCATED RENTAL CAR OPERATIONS OFFSITE TO THE CONSOLIDATED RENTAL CAR FACILITY
AIRPORT ACTIVITY LEVELS HAVE RETURNED AND IN 2022 WE REACHED AN ACTIVITY LEVEL OF NEARLY 46 MILLION ANNUAL PASSENGERS
DURING THE SUMMER, THE QUEUING AND CONGESTION LEVELS RETURNED AND QUEUES EXTENDED BACK TO THE CLOCK TOWER
DURING THE HOLIDAY PEAK PERIODS, THE QUEUES EXTENDED FURTHER BACK ONTO STATE ROUTE 518
SINCE WE EXPERIENCED MORE METER GREATER ACTIVITY DURING THOSE PERIODS
OUR TRAFFIC MODELING EFFORTS HAVE INDICATED THAT AS AIRPORT ACTIVITY CONTINUES TO INCREASE, WE WOULD ANTICIPATE THE QUEUES TO REACH THE I 5/I-405 INTERCHANGE REGULARLY DURING THE SUMMER MONTHS
IN THE NEXT FEW YEARS
THIS IS A QUEUE LENGTH OF OVER TWO AND A HALF MILES, WITH AN AVERAGE TRAVEL TIME OF 16 MINUTES
THIS REPRESENTS A SIGNIFICANT IMPACT TO OUR CUSTOMERS, TENANTS, OPERATORS AND EMPLOYEES, AS WELL AS AN IMPACT TO THE LOCAL COMMUNITIES
NEXT SLIDE, PLEASE
IN 2019
THE COMMISSION ALSO ADOPTED THE GROUND TRANSPORTATION POLICY DIRECTIVE
MY COLLEAGUES PETER SPOKE TO THIS BRIEFLY
THE OBJECTIVE IS TO REDUCE PRIVATE VEHICLE PICKUP AND DROP OFF AND TO MAINTAIN THE 15 MINUTES TRAVEL TIME FROM CLOCK TOWER TO THE CURB OR PARKING GARAGE
WE ARE SUPPORTING THIS EFFORT IN TWO WAYS
FIRST, WE'RE PROVIDING ADDITIONAL CAPACITY BY REDUCING THE OIL CONGESTION AND QUEUING ON THE PORT ROTARY SYSTEM, ENSURING THAT WE MEET THAT 15 MINUTES TRAVEL TIME GOAL
SECOND, IN ORDER TO REDUCE PRIVATE VEHICLE PICKUP AND DROP OFF, WE NEED TO SHIFT OUR CUSTOMERS FROM THOSE MODES TO OTHER ACCESS MODES
THE STRATEGIES AND TACTICS ARE FOCUSED ON HOV MODES LIKE LIGHT RAIL TRANSIT, OUR GROUND TRANSPORTATION SERVICES, AND LONG TERM PUBLIC PARKING
IF WE ARE SUCCESSFUL IN THESE STRATEGIES BY SHIFTING ACTIVITY TO THESE MODES, THIS PROJECT WILL PROVIDE ADDITIONAL LANE CAPACITY NECESSARY TO SUPPORT THOSE OPERATIONS
NEXT SLIDE, PLEASE
THE PROJECT IS TO BE DELIVERED THROUGH FOUR CONSTRUCTION CONTRACTS
THE BRIDGE DEMOLITION CONTRACT IS THE FIRST ONE AND IT HAS ALREADY BEEN EXECUTED AND COMPLETED
WE ACHIEVED SUBSTANTIAL COMPLETION THIS PAST JANUARY, AS YOU CAN SEE IN THE PHOTOS
THE SECOND CONTRACT INCLUDES THE MAJORITY OF THE WORK
WE HAVE COMPLETED FINAL DESIGN AND ARE PREPARING TO ADVERTISE FOR CONSTRUCTION BIDS IN THE NEXT MONTH
THIS CONTRACT WILL ALSO BE SUPPORTED BY MULTIPLE UTILITY AGREEMENTS, WHICH WE'RE CURRENTLY FINALIZING
WE HAVE ALSO SELECTED THE ARTISTS FOR THE RETAINING WALL IMPROVEMENTS THAT IS, THE RETAINING WALL ALONG THE AIRFIELD THAT I MENTIONED PREVIOUSLY, AND WE'RE IN THE PROCESS OF FINALIZING THOSE DETAILS WITH THE ARTIST
NEXT SLIDE, PLEASE
THE THIRD CONTRACT INCLUDES THE FABRICATION AND INSTALLATION OF THE CANOPY OVER THE RENTAL CAR TRANSIT CURB
THIS WORK WAS SEPARATED FROM THE MAIN CONTRACT SO ADDITIONAL TIME COULD BE TAKEN TO COMPLETE THE FOUNDATION DESIGN GIVEN THE COMPLEXITY OF THE UNDERLYING SERVICE TUNNEL STRUCTURE
WE HAVE COMPLETED 30% DESIGN AND WE ANTICIPATE COMPLETING DESIGN LATER THIS SUMMER
WE HAVE ALSO SELECTED THE ARTISTS FOR THE TRANSIT SEATING IN THIS LOCATION
I MENTIONED PREVIOUSLY THAT IN THE LOCATION EXHIBIT THAT IT ONLY REFLECTED THE EROSION CONTROL TREATMENT IN SOME AREAS
THE CHALLENGE IS THAT THE LANDSCAPING IMPROVEMENTS IN THOSE AREAS WILL BE DISPLACED BY THE PROPOSED FUTURE ROADWAY IMPROVEMENTS IDENTIFIED IN OUR SUSTAINABLE AIRPORT MASTER PLAN
SINCE WE WANT TO BE PRUDENT WITH OUR CAPITAL INVESTMENTS, WE HAVE CREATED A FOURTH CONTRACT TO PROVIDE THOSE ADDITIONAL LANDSCAPING IMPROVEMENTS IN THOSE AREAS
WE HAVE COMPLETED 60% DESIGN ON THAT WORK, AND WE ARE CURRENTLY KEEPING IT ON HOLD UNTIL WE GET A BETTER UNDERSTANDING OF THE IMPLEMENTATION TIMELINE FOR SAMP
WE'LL NEED TO MAKE A DECISION TOWARDS THE END OF 2024 ABOUT WHETHER TO MOVE FORWARD WITH THOSE IMPROVEMENTS OR NOT
NEXT SLIDE, PLEASE
THE CURRENT BUDGET FOR THE PROJECT IS 79.1 MILLION AND WAS BASED UPON OUR 30% DESIGN EFFORT
WE HAVE NOW REACHED FINAL DESIGN AND OUR TOTAL ESTIMATED COST IS NOW 89 AND A HALF MILLION
THIS IS AN INCREASE OF 10.4 MILLION
THESE COSTS ARE ATTRIBUTED TO THE FOLLOWING WE SEE A $5 MILLION COST INCREASE FOR ADDITIONAL CONSTRUCTION COORDINATION AND PHASING
THERE IS A LOT OF CONSTRUCTION GOING ON AT THE AIRPORT, AND WE NEED TO MAINTAIN OPERATIONS FOR CUSTOMERS, EMPLOYEES AND OUR OPERATORS
WE'VE ALSO GIVEN THESE CHANGES, WE'VE ALSO SEEN A SIGNIFICANT INCREASE ON OUR STORMWATER MANAGEMENT COSTS SINCE WE'VE BEEN NEEDING TO MAINTAIN MULTIPLE SYSTEMS CONCURRENTLY, WE SAW A $2.9 MILLION INCREASE IN HIGHER THAN ANTICIPATED ESCALATION
THESE ARE IN AREAS OF MEDIUM VOLTAGE, TRAFFIC CONTROL, LABOR AND FUEL
WE SAW AN INCREASE IN THE LANDSCAPING COSTS OF 1.9 MILLION FOR THE ENHANCED LANDSCAPING CONSIDERED AS PART OF THE LANDSCAPE MASTER PLAN VISION FOR THE AIRPORT
AND WE ALSO SAW AN INCREASE OF 1.1 MILLION IN ADDITIONAL SCOPE CHANGES THAT INCLUDED CAMERAS TO SUPPORT OPERATIONS, THE REMOVAL OF ABANDONED INDUSTRIAL STORMWATER SYSTEM INFRASTRUCTURE, AND AN ALIGNMENT SHIFT TO SUPPORT FUTURE OPERATIONS DURING FUTURE ROADWAY CONSTRUCTION SO THAT WE DON'T IMPACT OUR TENANTS AND OPERATORS SIGNIFICANTLY
WE ARE ALSO RECEIVING SIX AND A HALF MILLION DOLLARS IN FEDERAL FUNDING THROUGH THE AIRPORT IMPROVEMENT PROGRAM
WE HAVE ALSO APPLIED FOR $25 MILLION IN GRANT FUNDS TO THE 2023 RAISE GRANT PROGRAM, AND WE HOPE TO HEAR THAT WE'RE SUCCESSFUL WITH THAT THIS JUNE
THIS REQUEST TODAY ALSO INCLUDES THE TRANSFER OF $527,000 THAT WERE AUTHORIZED AS PART OF THE TERMINAL SECURITY ENHANCEMENTS PROJECT AND UP TO $3.8 MILLION FROM THE LANDSLIDE PAVEMENT PROGRAM PROJECT
THIS WILL ALLOW THE WIDE ARRIVALS PROJECT TO COMPLETE THE INSTALLATION OF THE BOLTARDS AT THE PORT END OF ARRIVALS AND COMPLETE THE PAVEMENT REHABILITATION SCOPE ON AIR CARGO ROAD AND ALONG THE SOUTHBOUND LANES OF THE NORTHERN AIRPORT EXPRESSWAY
AGAIN, WE'RE DOING THIS BECAUSE IT'S MORE COST EFFECTIVE TO THE PORT AND IT RESULTS IN FEWER IMPACTS TO OUR CUSTOMERS, TENANTS AND OPERATORS
THESE FUNDS WOULD BE IN ADDITION TO THE 89.5 MILLION THAT WE'VE IDENTIFIED ON THE SLIDE JUST FOR TRANSPARENCY AND COMMISSIONER CALKINS, THIS IS ITEM EIGHT J THAT YOU WERE TALKING ABOUT PREVIOUSLY IN THE MEETING
NEXT SLIDE, PLEASE
AS I MENTIONED, WE'LL BE IMPLEMENTING THE PROJECT THROUGH A SERIES OF FOUR CONSTRUCTION CONTRACTS
THE FIRST CONTRACT SUPPORTING THE BRIDGE DEMOLITION, WE ACHIEVED SUBSTANTIAL COMPLETION THIS PAST JANUARY
THE SECOND CONTRACT, WHICH IS THE MAJORITY OF THE WORK, SHOULD BE ADVERTISED FOR CONSTRUCTION BIDS AT THE END OF THIS QUARTER, AND WE PLAN TO ACHIEVE SUBSTANTIAL COMPLETION BY FIRST QUARTER 2026
THE THIRD CONTRACT FOR THE RENTAL CAR TRANSIT CANOPY SHOULD BE ADVERTISED LATER THIS YEAR, AND WE HOPE TO REACH SUBSTANTIAL COMPLETION BY THE END OF FIRST QUARTER 2024 IF WE MOVE FORWARD WITH THE ADDITIONAL LANDSCAPING IMPROVEMENTS
WE'LL NEED TO REACH THAT DECISION TOWARDS THE END OF 2024 SO WE CAN FINISH DESIGN AND COMPLETE WORK AGAIN BY FIRST QUARTER 2026
I'M VERY HAPPY TO SAY, SINCE I'M A BIG SOCCER FAN, THAT WE'LL GET ALL THIS DONE BEFORE WE HOST FIFA AND THE WORLD CUP
NEXT SLIDE, PLEASE
LASTLY, I WANTED TO MENTION THE UPGRADE SEA CAMPAIGN
EXTERNAL RELATIONS AND CUSTOMER EXPERIENCE HAVE PUT TOGETHER A COMPREHENSIVE INFORMATION AND MARKETING CAMPAIGN HIGHLIGHTING OUR CAPITAL PROGRAM
THIS PROJECT WILL BE DESCRIBED AS ROADWAY IMPROVEMENTS
AS PART OF THAT CAMPAIGN, THE UPGRADE SEA TEAM WILL BE LEVERAGING ADVERTISING, MEDIA TOURS, SOCIAL MEDIA, AS WELL AS A PROJECT PAGE ON THE PORT'S WEBSITE TO CONVEY INFORMATION TO OUR CUSTOMERS
NEXT SLIDE, PLEASE
THIS EXHIBIT IS AN EXAMPLE OF THE INFORMATION THE UPGRADE SEA TEAM WILL PROVIDE ON THE PROJECT PAGE
AS YOU CAN SEE, IT DEPICTS THE OVERALL IMPROVEMENTS IN HOW OUR VARIOUS USER GROUPS WILL NAVIGATE THE FUTURE ROADWAY SYSTEM
I WOULD REALLY LIKE TO TAKE A MOMENT AND RECOGNIZE THE WORK THAT THIS TEAM HAS DONE AND THEIR VISION IN THE 25 YEARS THAT I'VE BEEN WORKING IN THE AVIATION CAPITAL PROGRAM
THIS WAS REALLY THE MOST COMPREHENSIVE AND INTEGRATED PUBLIC OUTREACH CAMPAIGN THAT I'VE YET TO EXPERIENCE
SO I'M REALLY LOOKING FORWARD TO WORKING WITH THEM AS WE MOVE FORWARD
NEXT SLIDE, PLEASE
IN CLOSING, I'D LIKE TO SUMMARIZE OUR REQUESTED ACTION TODAY FOR THE COMMISSION
WE'RE REQUESTING AUTHORITY TO ADVERTISE AND AWARD UP TO THREE CONTRACTS TO EXECUTE UTILITY AGREEMENTS SUPPORTING THE RELOCATION OF UTILITIES FOR THE WORK, TRANSFERRING $527,000 OF BUDGET FROM THE TERMINAL SECURITY ENHANCEMENTS, AND TRANSFERRING UP TO $3.8 MILLION OF BUDGET FROM THE LANDSITE PAVEMENT PROGRAM
IN ADDITION, WE'RE REQUESTING AN ADDITIONAL AMOUNT OF 73.6 MILLION BE AUTHORIZED FOR A TOTAL PROJECT AUTHORIZATION OF 89 AND A HALF MILLION
ARE THERE ANY QUESTIONS FROM THE COMMISSION? QUESTIONS? COMMISSIONER CALKINS, COULD WE GO BACK TO SLIDE 14? I THINK IT WAS THAT MAP IS REALLY HELPFUL
SO FIRST I WANT TO TALK ABOUT ONE OF THE WHAT I THINK IS ESSENTIAL COMPLEMENTARY EFFORTS BY THE AVIATION TEAM ON THIS PARTICULAR ONE, WHICH IS THE STUDY BEING CONDUCTED IN COORDINATION WITH ENROLL, AND THAT'S USING DIGITAL TWINS TO LOOK AT TO MODEL TRAFFIC FLOWS ACROSS MODES
GIVE US A LITTLE BIT OF AN UNDERSTANDING SO FAR, WHAT WE KNOW FROM THAT PRELIMINARY ON THAT STUDY
HOW ARE WE GOING TO ACCOMMODATE THOSE 66 MILLION PASSENGERS THAT WE NEED TO TRY TO ACCOMMODATE? HOW DOES THIS PROJECT PLAY A PART OF THAT? AT THE SAME TIME AS WE GOING BACK TO OUR JUSTIFICATION SLIDE ON PAGE SIX WORK TO ACTUALLY REDUCE THE ABSOLUTE NUMBER OF PEOPLE BEING PICKED UP AND DROPPED OFF IN SINGLE OCCUPANCY VEHICLES ON THE ARRIVALS AND DEPARTURES DRIVE
SO I'LL TAKE A SHOT AT THAT
I THINK TO ANSWER THE FIRST QUESTION, THE ROLE THIS IS THE BEGINNING, I THINK OF THANK YOU, HEATHER
OF IMPROVING ACCESS FOR THE MODES THAT WE LOOK AT AS PERFORMING BETTER THAN A STANDARD PRIVATE OCCUPANCY VEHICLE
AND THAT MEANS THAT WE NEED TO PROVIDE ACCESS FOR THOSE VEHICLES
SO FOR TNCS TAXIS
FLAT RATE VEHICLES
THEY ARE ABLE TO MAKE TWO TRIPS IN THEIR VERY EFFICIENT MODES BECAUSE THEY COME IN, THEY DROP SOMEBODY OFF AND THEY PICK SOMEBODY UP ON THE WAY OUT
IDEALLY, THAT'S WHAT WOULD HAPPEN
SO WE'VE MADE SOME CHANGES JUST IN THE IMMEDIATE TERM
FOR INSTANCE, MAKING HELIX THREE AVAILABLE FOR TNC PROVIDES MORE LIABILITY FOR REMATCH CUSTOMERS
SO WE'VE DONE THAT
THIS IS ALONG THOSE LINES AS WE'RE PROVIDING THAT DEDICATED ACCESS
AND AS YOU'LL SEE THE GREEN LINE HERE, THAT DEDICATED ACCESS TO THE GARAGE, WHERE IS THE THIRD FLOOR GROUND TRANSPORTATION CENTER
THE TNCS AND TAXIS WILL ACCESS THAT AREA
SO THAT'S ONE THING IS TO CONSIDER THAT THIS IS THE BEGINNING OF TRYING TO PROMOTE THOSE MODES
MAKE SURE THOSE MODES CONTINUE TO HAVE PREFERRED ACCESS OR BETTER ACCESS SHOULD TO SAY THEY'RE NOT IN THE MIX WITH EVERYBODY ELSE, AS WE SAW IN THAT EARLIER PART OF THE PRESENTATION
WAITING TO GET TO THE TERMINAL IN A LONG LINE OF CARS OUT TO 518
SO THAT'S PART OF THE GOALS OF THIS PROJECT IS TO SEPARATE TRAFFIC AND PROVIDE THAT ACCESS
AND I THINK THE SECOND PART WAS ABOUT A NATIONAL RENEWABLE ENERGY LABORATORY AND THE WORK WE NEED TO UNDERSTAND THE BEHAVIORAL IMPLICATIONS OF WHAT BOTH TIME AND ENERGY IT TAKES TO GET TO THESE FACILITIES AND WHAT KIND OF INFLUENCE THEN WHEN WE CHANGE ACCESS THAT MIGHT HAVE ON THE MODE ON MODE SPLIT
SO WE OFTEN THROUGH GTAP, TALK ABOUT OUR PREFERRED MODE GOALS, TRYING TO REDUCE THAT POV MODE, SORRY, PRIVATE OCCUPANCY VEHICLE, STAY AWAY FROM ACRONYMS DOWN TO ABOUT 30% TO MEET THOSE 23 EMISSION GOALS AND OUR OVERALL CUSTOMER SERVICE GOALS
AND SO THIS PROJECT SUPPORTS THAT
NREL IS THE NEXT PIECE
IT'S A BIT MORE ADVANCED
IT TAKES SOME ANALYSIS AND CONSIDERATION BY THIS COMMISSION ABOUT WHAT PARTS OF THAT WOULD BE FEASIBLE
AND SO WE'RE STILL IN THOSE STAGES AND DISCUSSIONS
AND PART OF THAT IS JUST EVOLVING OUR COMMUNICATION WITH THE COMMISSIONER CHO THE AVIATION COMMITTEE AND MAKING SURE WE'RE BRINGING THOSE RESULTS AND CONCLUSIONS BACK SO THAT YOU CAN REVIEW AND THEN WE CAN HAVE A DIALOGUE ABOUT WHAT THE NEXT STEPS ARE
SO THAT'S HOW I'D RESPOND TO THAT
COMMISSIONER
PETER, CAN YOU REMIND US WHAT THE PERCENTAGE RIGHT NOW IS? IT'S AROUND 40%
SO WE NEED TO DROP BY 10% AS PASSENGER LEVELS
CRIME, EVEN A DROP IN PERCENTAGE COULD STILL MEAN AN ABSOLUTE CLIMB
CORRECT? IT'S ALWAYS FUNNY TO ME BECAUSE IT'S SORT OF LIKE A JOKE IN TRAVEL THAT I HAVE TO GO PICK UP MY LOVED ONES FROM THE PORT
AND YET THAT'S EXACTLY WE'RE TRYING TO MAKE IT SO THAT PEOPLE WOULD PREFER NOT TO GET PICKED UP, THAT IT'S SO EASY TO USE OTHER MODES, THAT THEY'LL TAKE LIGHT RAIL OR THEY'LL TAKE A TNC, OR A TAXI OR A SHUTTLE BUS OR A METRO BUS
I'M DEEPLY APPRECIATIVE THAT STAFF HAS TAKEN THAT MESSAGE FROM COMMISSION AND SAID THAT IS WHAT WE'RE GOING TO WORK ON IS ADDRESSING THAT PARTICULAR MODE SHIFT
AND I JUST WANT TO POINT OUT SOME OF THE THINGS YOU JUST SAID, WHICH IS THAT GREEN LINE THAT WE SEE THERE LEADING FROM KIND OF THE ORANGE ALL TRAFFIC TO THE LOWER GARAGE, THAT IS THE DEDICATED LINE FOR TRANSPORTATION NETWORK COMPANIES AND SHUTTLES AND OTHER TAXIS
CORRECT
AND NO PRIVATE OCCUPANCY VEHICLE CAN GO INTO THAT PORTION OF THE GARAGE EVEN TODAY? RIGHT? TODAY, THAT'S CORRECT
IT'S ONLY AUTHORIZED FOR THOSE VEHICLES
AND THE PORT OF THE WORK THAT WE'RE GETTING FROM NREL WILL HELP US TO UNDERSTAND MAYBE AT WHAT POINT IN THE EXPRESSWAY WE BEGIN TO SORT OF DELINEATE WHICH VEHICLES CAN GO WHERE
CORRECT
SO WE'RE GOING TO USE STATE OF THE ART TRAFFIC MODELING TO FIGURE OUT HOW DO WE REDUCE CONGESTION AS MUCH AS POSSIBLE, WHETHER THAT'S A MILE BACK OR A QUARTER MILE BACK OR RIGHT WHERE IT SHOWS IN THIS
WE WILL USE THAT TWIN TO THAT DIGITAL TWIN TO TRY TO DETERMINE THAT BEFORE WE PUT IT IN PRACTICE, RIGHT? THAT'S THE INTENT
YES, EXACTLY
OKAY
AND I THINK THAT'S IT
THANK YOU SO MUCH
AND THANK YOU FOR CLARIFYING MY MISUNDERSTANDING WHAT WAS ON CONSENT AND WHAT WASN'T
AND I APPRECIATE THAT WE GET TO HAVE THIS CONVERSATION
COMMISSIONER FELLEMAN, THANK YOU AGAIN FOR THIS ONGOING DISCUSSION
AND I GUESS ONE OF THE THINGS JUST IN THE TERMS OF MEETING THE CENTURY AGENDA OBJECTIVE IN THIS TERM OF GREENEST, MOST ENERGY EFFICIENT PORT IN NORTH AMERICA, WHAT WE CITE FOR THIS EXAMPLE IS THAT WE'RE MEETING AGENCY REQUIREMENTS FOR STORMWATER LEAVING PORT OWNED AND OPERATED FACILITIES
THAT THE FACT THAT STORMWATER MANAGEMENT WOULD BE THE THING THAT'S BEING CALLED OUT FOR THIS PROJECT SEEMS ODD
SORRY
SO, COMMISSIONER, CAN YOU REFER BACK TO THE SLIDE, PAGE THREE OF THE MEMO, IS THAT CORRECT? OF THE POWERPOINT OF THE POWERPOINT CLERK? CAN WE GO TO PAGE THREE? THANK YOU
WELL, IT'S ACTUALLY HIDDEN IN THE BLUE BAND
OKAY
SO, HEATHER, IF YOU COULD JUST SPEAK A LITTLE BIT ABOUT THE CIVIL IMPACTS HERE
SO IN TERMS OF WHAT THE PROJECT IS DOING, IN TERMS OF THE BRICK AND MORTAR THAT WE'RE BUILDING, IT IS TRUE THAT WE'RE ONLY IMPROVING OUR STORMWATER FACILITIES TO MEET THIS OBJECTIVE
HOWEVER, THIS PROJECT IS PROVIDING ADDITIONAL LANE CAPACITY FOR GROUND TRANSPORTATION AND PUBLIC PARKING THAT WE'VE TALKED ABOUT, WHICH WILL HELP THOSE FUTURE POLICIES THAT WE PUT IN PLACE AS PART OF THE GROUND TRANSPORTATION FRAMEWORK
SO IT SEEMED A LITTLE DISINGENUOUS TO CLAIM MORE BECAUSE WE'RE REALLY NOT DOING IT AS PART OF THE PROJECT OUTSIDE OF WE'RE SETTING THE FRAMEWORK TO SUPPORT WHAT'S COMING
DOES THAT HELP? I APPRECIATE THE CLARIFICATION
IT'S STILL NOT REALLY WHAT ULTIMATELY IT'S LIKE THE REASON FOR THE CONSTRUCTION VERSUS THE CONSTRUCTION PROJECT
RIGHT
SO WE'RE TALKING ABOUT IN THE COURSE OF BUILDING THIS ROADWAY, WE'RE CAPTURING OUR STORMWATER, BUT IT DOESN'T TALK ABOUT WHY WE'RE BUILDING THE ROADWAY
I THINK THAT'S MORE THE FIRST ITEM TO A CERTAIN EXTENT
AND ALSO THE THIRD ITEM THAT WAS THERE
OKAY, SO JUST IN TERMS OF ITS ENVIRONMENT, WE'RE JUST TALKING ABOUT MODE SHIFT AND PEOPLE OUT OF SINGLE VEHICLES, BUT IT'S NOT REFLECTED AS ONE OF THE CENTURY GENDER GOALS BEING MET
SO I JUST THINK IF IT'S NOT THE GOAL, THEN IT'S A CHALLENGE
AND THE OTHER THING IS, AS I MENTIONED IN MY OPENING COMMENTS, WAS IF THE GOAL REALLY IS MODE SHIFT AND WE HAVE ALL THIS CONSTRUCTION DEBRIS GOING ON, SHALL WE SAY, THE IDEA OF DOING SOMETHING TO GET THE RAIL STATION
EASIER ACCESS THE PASSENGER, EASIER ACCESS TO THE TERMINAL
I MEAN, THE SHUTTLE
THE GOLF CART IS NICE, AND I APPRECIATE BEING PART OF GETTING THAT GOING IS ONE OF THE FIRST THINGS I WORKED ON HERE
BUT IT'S LIMITED IN ITS CAPABILITIES IN ANY AIRPORT WHERE THE DAM HAS MOVING SIDEWALKS, AND WE WERE TOLD WE CAN'T DO THAT BECAUSE THE STRUCTURE WASN'T BUILT WITH THAT AND MEANT TO BE DESIGNED
BUT HERE WE'RE MESSING, WE'RE MAKING NEW STUFF
AND SO WHY ISN'T THE PORT OF THIS CONSIDERATION AT THIS TIME? WELL, SO IT'S A REALLY GOOD QUESTION
I THINK WHEN YOU GO TO THAT FIRST SLIDE, THE SLIDE I HAD ABOUT THE FRAMEWORK, WE LOOK AT THE DIFFERENT KINDS OF PROJECTS THAT WE'RE TALKING ABOUT, OR INITIATIVES
TRANSIT IS A PART OF THAT
TO BE HONEST, THE MOVING SIDEWALK IDEA IS PART OF OUR LONG TERM PLANS, OUR NEAR TERM STRATEGIC AIRPORT MASTER PLAN CONCEPT FOR A TRANSPORTATION CENTER, OVER THE GROUND TRANSPORTATION LOT
THAT'S WHERE THAT MOVING SIDEWALK IS PLANNED TO GO
SO TO THE EXTENT THAT WE CAN MOVE THOSE PROJECTS FORWARD, WE'LL SEE THAT SOONER
RIGHT NOW, OUR OPPORTUNITY IS REALLY THROUGH THE GARAGE, AS YOU JUST MENTIONED AND DISCUSSED
IT'S A LIMITED SERVICE WITH THE CART SERVICE, AND IT ISN'T SORT OF SEMI ENCLOSED, BUT EXPOSED TO THE ELEMENTS AND THE WIND AND THAT SORT OF THING
I THINK MOVING FORWARD, WE'RE LOOKING AT GETTING THAT INTEGRATED INTO BOTH THAT TRANSPORTATION NORTHEAST TRANSPORTATION CENTER AND ALSO THAT LINK TO THE OTHER PART OF THE LIGHT RAIL STATION
SO IF YOU LOOK AT THE GEOGRAPHY OF THE LIGHT RAIL STATION, WILL HAVE A DIFFERENT CONNECTION AS WELL
BUT ISN'T THE TRANSPORTATION CENTER SORT OF CONTINGENT ON THE NEW TERMINAL? IT IS CONTINGENT UPON THE MASTER PLAN
YEAH, IT'S ONE OF THE NEAR TERM PROJECTS IN THE MASTER PLAN
THAT'S CORRECT
IT'S A HUGE PHASE
LATER, IT WOULD REQUIRE A WHOLE NOTHER TERMINAL DEVELOPMENT
CORRECT
AND I WILL SAY TO CHANGE THE STRUCTURE OF THE GARAGE TO ACCOMMODATE MOVING SIDEWALKS WOULD TAKE A SIMILARLY SUBSTANTIVE AND SUBSTANTIAL PROJECT TO OKAY, I APPRECIATE THAT
SO THE ONLY THING IS IF YOU'RE LOOKING AT IF I'M LOOKING AT THIS PICTURE WHERE THE GREEN LINE COMES IN TO THE DEDICATED SHUTTLES TO THE TERMINAL RIGHT
AND IF YOU SAW THE LIGHT RAIL, I'M JUST THINKING THAT IF IT WAS TERMINATING CLOSER TOWARDS THAT SAME TERMINUS RIGHT
AGAIN, THIS WOULD BE DONE WITH AN ASSOCIATION WITH OTHER AGENCIES AND THINGS LIKE THAT, BUT I DON'T KNOW WHAT AIRPORT IN THE WORLD HAS THIS LOUSY KIND OF CONNECTION FROM THE CITY CENTER TO THE MAJOR TRANSPORTATION OF THE ENTIRE FOUR STATE REGION? I MEAN, IT JUST IS AMAZING TO ME
AND SO THIS IS NOT A CHEAP UNDERTAKING, I UNDERSTAND, BUT IT'S NOT, LIKE, EASY TO YOU WANT TO FACILITATE THIS KIND OF USE
THE PORT EVEN HAVE DIRECT BUS SERVICE
SO I JUST DON'T KNOW
WE TALK ABOUT MODE SHIFT, BUT YOU HAVE TO MAKE AN OPTION WORTH SHIFTING TO
SO THE IDEA OF WAITING TO BUILD A NEW TERMINAL BEFORE WE CAN FIX THIS SEEMS TO ME TO BE KIND OF AN UNREASONABLE TIME FRAME FOR US IF WE'RE REALLY SERIOUS ABOUT GETTING PEOPLE OUT OF THEIR CARS
AND I DON'T KNOW, MAYBE IT'S FOR OBVIOUSLY IT'S ABOVE YOUR PAY GRADE TO MAKE THAT DECISION, BUT I JUST HAVE TO LAY IT OUT THERE THAT THIS IS TWEAKING AROUND THE EDGES
IT'S A START
RIGHT? BUT IT'S NOT A SMALL START
RIGHT
IT'S A HUGE BUDGET, $89 MILLION, AND WE STILL DON'T HAVE FAST TRANSIT
BUT THANK YOU FOR SHARING THIS LONG TERM PLAN
ALL RIGHT, COMMISSIONER HASEGAWA
ALL RIGHT, SO UM CLARIFYING QUESTION
PART OF THIS PROJECT IS ALSO THE TERMINAL SECURITY ENHANCEMENTS PROJECT
AND WAS THAT ADDRESSED? DOES THAT SEEK TO ADDRESS SOME OF THE INEFFICIENCIES IN SECURITY SCREENING EXPERIENCED BY PASSENGERS? THE TERMINAL SECURITY ENHANCEMENTS PROJECT IS A SECURITY BALLARD PROJECT
AND SO WE'RE INSTALLING BOLTARDS ON DEPARTURES ARRIVALS ACROSS THE SKY BRIDGES AND AT THE COURTESY VAN PLAZA IN THE GARAGE
THE REASON WHY WE'RE TRANSFERRING TO SCOPE THE WIDE ARRIVALS IS THE AREA WHERE WE'RE RELOCATING THE TRANSIT CURVE WAS AN AREA PROPOSED FOR TREATMENT, AND IT MAKES SENSE TO DO IT ONCE, NOT TWICE, WHICH IS WHY WE'RE SHIFTING IT INTO WINE RIVALS
OKAY
AND I JUST WANT TO ACKNOWLEDGE AND ECHO THE COMMENTS BY COMMISSIONER CALKINS AND COMMISSIONER FELLEMAN THAT IT'S NOT JUST ABOUT EXPANDING CAPACITY
IT'S ALSO ABOUT PROMOTING EFFICIENCIES
AND SO GETTING FOLKS OUT OF CARS FOR SINGLE DUAL PASSENGER VEHICLES, DOING ONE OFF DROP OFFS VERSUS HAVING HIGHER CAPACITY, HIGHER OCCUPANCY VEHICLES COMING THROUGH, AND BEING ABLE TO DO THAT HAS TO BE A PART OF OUR FRAMEWORK
RIGHT
THAT'S GOT TO BE THE INTEGRAL COMPONENT, MASS TRANSIT
IF IT'S NOT A PART OF THE PLAN, IT'S NOT A REAL PROPOSAL, IN MY OPINION
THE OTHER FOLKS WHO ARE IN TERMS OF EFFICIENCY AND GETTING THEM TO THE AIRPORT, IT'S NOT JUST ABOUT PASSENGERS
IT'S ALSO ABOUT EMPLOYEES
PART OF THE GTAP WAS SUPPOSED TO BE A CONVERSATION WHERE SOME OF THE ACTUAL EMPLOYERS LOOKED FOR A WAY TO BE ABLE TO ENTER INTO A PROGRAM WHERE THEY COULD SUBSIDIZE THE COST FOR AN ORCA PASS FOR THEIR EMPLOYEES
AND I'M WONDERING IF WHERE THAT CONVERSATION IS TODAY
YEAH, SO THAT'S A GOOD QUESTION
AND IT'S RELATED TO THE TRANSPORTATION MANAGEMENT ASSOCIATION CONCEPT, AND I THINK THE REST OF THE GTAP WORK IF YOU LOOK AT THE INITIATIVES AND STRATEGIES THAT WE OUTLINED IN THAT FRAMEWORK, THE EMPLOYMENT SO RELATIONSHIP, WE DO HAVE A GTAP MANAGER WHO WORKS ON THE TMA CONCEPTS
AND THAT WOULD BE ONE OF THEM WOULD BE KIND OF THE ORCA PASS FOR EMPLOYEES
THIS WOULD BE NOT JUST FOR PORT EMPLOYEES, BUT I THINK YOU'RE REFERRING TO ALL AIRPORT EMPLOYEES
YEAH, WE'RE MAKING THOSE CONTACTS NOW WITH DELTA AIRLINES, ALASKA AIRLINES, AV AIR PROS, OUR ATO REPRESENTATIVE TO ATR RATHER AIRPORT TECHNICAL REPRESENTATIVE TO TO TRY START THOSE CONVERSATIONS THEN WITH THE MAJOR EMPLOYERS AT THE AIRPORT ABOUT WHAT WE CAN LEVERAGE FROM THEM
AND PORT OF SEATTLE TO DEVELOP A SPECIFIC INITIATIVE THAT WOULD TARGET SOMETHING LIKE A TRANSIT PASS
ALSO OTHER COMMUTE BENEFITS LIKE FIRST AND LAST MILE, WHAT WE CAN DO, THE IMMEDIATE TERM AND THERE SHOULD BE A PLAN THEN, AND WE'LL WANT TO EVOLVE THIS CONVERSATION THEN THROUGH THE AVIATION COMMITTEE ABOUT WHAT'S THE PLAN AND THEN WHAT WE'RE GOING TO DO THIS YEAR AND THE NEXT AND THE FOLLOWING YEAR
SO THAT'S WHERE WE'RE AT RIGHT NOW, STARTING THOSE CONVERSATIONS WITH DELTA, ALASKA, THE ATR, AND THEN TRYING TO FRAME UP WHAT THE SPECIFIC INITIATIVES WORK PROGRAM WILL BE FOR THE TMA
SO WHEN YOU'RE SAYING STARTING THOSE CONVERSATIONS, WHAT DOES THAT MEAN? SO IT MEANS THAT WE MADE CONTACTS WITH THEIR COMMUNITY TRIP REDUCTION REPRESENTATIVES, MEMBERSHIPS OF THOSE THAT SHOULD HAVE HAPPENED A YEAR AGO
UNDERSTOOD
SO WE'RE MAKING THOSE CONTACTS AND WE ARE JUST NOW, RECENTLY WE ARE MAKING THOSE CONTACTS
WE MADE A HIRE LAST SUMMER TO PROVIDE A FULL TIME RESOURCE FOR GTAP AND THE TMA
HE IS ON BOARD AND WORKING DILIGENTLY TO UNDERSTAND THE LANDSCAPE OF ISSUES AND TRYING TO DEVELOP THESE STRATEGIES SO THAT THEY AT LEAST HAVE SOME RECOMMENDATIONS FOR THE COMMISSIONER BEFORE WE IMPLEMENT
AND THAT WOULD BE ONE POLICY DIRECTIVE UNDER GTAP THAT WOULD COME BEFORE THE AVIATION COMMITTEE THAT'D BE ACTED UPON BY THE COMMISSION
EXACTLY
DO WE HAVE A GENERAL TIMELINE BY THIS NEW HIRE ABOUT HOW THIS BUDDING CONVERSATION CAN PROCEED IN A TIMELY FASHION? YEAH, I DON'T HAVE A DATE FOR YOU TODAY, BUT WE'LL CERTAINLY WORK ON ONE
OKAY, I THINK THAT SOUNDS LIKE TO ME THAT WOULD BE A REFERRAL TO COMMITTEE
MAYBE NOT AT THIS TIME BECAUSE IT'S JUST BEGINNING, BUT WE'RE WATCHING
SO NOTEWORTHY
COMMISSIONER WSDOT, I BELIEVE IT'S ALREADY ON OUR WORK PLAN FOR THE YEAR
IT IS VERY GOOD TRANSIT PASSES FOR SCA EMPLOYEES AS A PART OF THE GTAP IS ON PART OF THE AVIATION COMMITTEE WORK PLAN
THANK YOU, AVIATION COMMITTEE MEMBERS
YOU ALL SO PRODUCTIVE
OKAY, THANK YOU
AND THEN MY OTHER QUESTION IS ABOUT THE ADDITIONAL SCOPE INCREASES AND COORDINATION REQUIREMENTS
CAN YOU ELABORATE ON THAT PLEASE, IN TERMS OF THE SPECIFICS, THE $5 MILLION COST INCREASE
YES
THE LARGEST COST INCREASE ASSOCIATED WITH THIS ASK
YEAH, I BELIEVE TWO AND A HALF MILLION OF THAT WAS ASSOCIATED IN STORMWATER MANAGEMENT COSTS
AGAIN, BECAUSE WE'RE HAVING TO RUN MULTIPLE SYSTEMS AT THE SAME TIME
SO INSTEAD OF WORKING FROM ONE AREA TO THE OTHER, WE'RE NOW MANAGING MULTIPLE AREAS AT THE SAME TIME
AND I BELIEVE WE HAVE ABOUT TEN DIFFERENT CAPITAL PROJECTS THAT ARE ALSO UNDERGOING CONSTRUCTION ADJACENT TO OR IMMEDIATELY UPSTREAM OR DOWNSTREAM OF THE WORK THAT WE'RE PERFORMING
THAT IS CREATING INEFFICIENCIES IN THE WORK THAT WE'RE DOING
AND SO YOU CAN ONLY DO SO MUCH BEFORE THEY COME IN AND DO THEIR WORK AND THEN WE COME BACK IN AND DO MORE OF OUR WORK LEAVE THEY COME IN AND DO MORE OF THEIR WORK TYPE OF INEFFICIENCIES WHEN I SAY THAT
AND SO THAT'S THE COST INCREASE THAT WE'RE FORECASTING THAT WE ANTICIPATE SEEING IN THE BIDS BECAUSE OF THOSE REQUIREMENTS THAT WE INCLUDE IN OUR CONTRACT TO COORDINATE
OKAY
AND SO THIS OVERALL ASK IS ABOUT IMPROVEMENTS TO EXISTING FOOTPRINT, DOES NOT INCLUDE EXPANSION, EXPANSION OF THE TERMINAL BUILDING
YOU'RE CORRECT
WE ARE ADDING THOSE TWO ADDITIONAL TRAVEL LANES THAT WE MENTIONED FOR GROUND TRANSPORTATION AND PUBLIC PARKING
OKAY
AND THEN DOES ANY OF THAT INCLUDE IMPROVEMENTS TO THE CELL PHONE LOT? NO, THE IMPROVEMENTS TO THE CELL PHONE LOT WERE COMPLETED RECENTLY WITH THE AIR CARGO ROAD IMPROVEMENTS PROJECT THAT WAS COMPLETED LAST YEAR
OKAY, THANK YOU
NO FURTHER QUESTIONS
COMMISSIONER MOHAMMED? WELL, FIRST I WANT TO JUST START OFF BY SAYING CONGRATULATIONS TO THE NEW COO ON YOUR POSITION
WELCOME BACK TO THE PORT AND WE'RE EXCITED TO HAVE YOU HERE
MY QUESTION IS REGARDING PAGE ELEVEN, THE SPECIFIC FACTORS CONTRIBUTING TO THE INCREASED COST
SO I WANTED TO KNOW, COULD YOU JUST MAYBE ELABORATE A LITTLE BIT ON THE 2.9 FOR HIGHER THAN ANTICIPATED ESCALATIONS? WHAT ARE THOSE SPECIFICALLY? WHEN WE DID OUR ESTIMATE AT 30% DESIGN, WE INCLUDED AN OVERALL ESCALATION FACTOR
I BELIEVE WE ASSUMED 5%
WHAT WE'VE SEEN IS HIGHER THAN 5% ON A COUPLE OF DIFFERENT ITEMS I BELIEVE IT WAS MEDIUM VOLTAGE, ELECTRICAL INFRASTRUCTURE, TRAFFIC CONTROL, LABOR AND FUEL
SO THOSE PRICES HAVE INCREASED MORE THAN THAT 5% THAT WE ALLOCATED
THAT'S REALLY HELPFUL
THE OTHER QUESTION I HAD WAS WHAT MEASURES ARE PUT IN PLACE TO PREVENT ADDITIONAL INCREASES OR COST ESCALATIONS? AT THIS TIME, WE'VE COMPLETED DESIGN, AND SO THIS IS OUR BEST ESTIMATE OF COST
YOU'VE SEEN THE COST CERTAINTY CHART THAT WE'VE SHARED WITH YOU BEFORE, THE TRIANGLE THAT SHOWS AS YOU MOVE FURTHER DOWN DESIGN, YOU KIND OF NARROW THAT WINDOW ON COST
AND SO WE'RE GETTING TOWARDS THE END OF THAT TRIANGLE, BUT THERE STILL IS COST UNCERTAINTY WHAT WE'RE LOOKING AT WHEN WE GO TO BID
WE'RE TRYING TO ACHIEVE OUR PRICING WITHIN 10% OF THAT VALUE
AND RIGHT NOW WE'RE FEELING PRETTY CONFIDENT, BASED UPON THE INFORMATION THAT WE HAVE, THAT WE'RE WITHIN 10% OF THE PRICE THAT WE'RE SHOWING
SO, UNFORTUNATELY, I CANNOT GUARANTEE THAT WE WILL COMPLETE THE WORK WITHIN BUDGET BECAUSE I DO NOT KNOW WHAT BIDS WE WILL RECEIVE
AND A LOT OF THIS IS DEPENDENT UPON THE MARKET CONDITIONS AND THE NUMBER OF CONTRACTORS WHO ARE INTERESTED IN THIS WORK
AND WE'VE TRIED TO STRATEGIZE AND PREPARE THESE CONTRACTS TO MAXIMIZE THE COMPETITIVENESS OF THESE CONTRACTS SO WE GET A BETTER PRICE
SO IS THAT 10% A NEW THING THAT YOU GUYS INCLUDED, OR IS THAT JUST YOUR NORMAL PRACTICE AND THESE INCREASES CAN POTENTIALLY HAPPEN IN THE FUTURE? THOSE ARE THE PERCENTAGES THAT ARE SHOWN ON THAT CHART
AND HISTORICALLY, WE'VE BEEN TRYING TO BE WITHIN 10%, EITHER ABOVE OR BELOW THE ESTIMATED BID VALUES
AND THEN IT'S PAGE 14 KIND OF GOING BACK TO COMMISSIONER FELLEMAN'S POINTS AROUND THE LIGHT RAIL ISSUE
WHEN YOU GET OFF THE LIGHT RAIL AND HEADING INTO THE AIRPORT, THAT IS REALLY CHALLENGING FOR FOLKS WHO ARE TRAVELING, ESPECIALLY INTERNATIONAL
AND I TOTALLY HEARD YOU GUYS ON MOVING AND MOVING SIDEWALK AND BUZZING IN SUPPORT OF GOLF CARTS, BUT I DEFINITELY DO THINK THAT IS SOMETHING THAT WE SHOULD TAKE UP IN THE AVIATION COMMITTEE AND FIND ALTERNATIVES
WHETHER THAT IS SHUTTLES, IT'S CLOSE TO IMPOSSIBLE IF YOU'RE ESPECIALLY TRAVELING INTERNATIONAL AND HAVE SUITCASES WITH YOU THAT ARE ABOUT 50 POUNDS EACH
AND SO I'LL LET YOU RESPOND
HAPPY TO, COMMISSIONER MOHAMMED
SO I THINK WHAT I'M HEARING IS THAT WE'LL TAKE THAT UP IN THE AVIATION COMMITTEE
WE'LL TALK SOME MORE ABOUT WHAT SOME IDEAS MIGHT BE TO EITHER ENHANCE THAT SERVICE OR WHAT THE CAPITAL IMPLICATIONS WOULD BE FOR, LIKE, A MOVING SIDEWALK
I THINK IT'S GOOD TO BRING THAT BACK TO THE FLOOR
I'VE HEARD IT TWICE TODAY, AND I THINK IT WOULD JUST HELP US TO KIND OF GROUND OURSELVES AND WHAT THAT WOULD MEAN FOR THAT EXISTING FACILITY
YEAH, AND I WONDERED ABOUT KIND OF GOING BACK TO PAGE ELEVEN ON THE FEDERAL FUNDING PIECE
SO ARE THOSE REIMBURSEMENTS THAT WE WILL BE SEEKING OUT OR HOW DOES THAT WORK? IF WE WERE SUCCESSFUL IN GETTING THE RAISE GRANT, THAT'S $25 MILLION OF FUNDING THAT WOULD BE MADE AVAILABLE TO US
AND IT'S A REIMBURSEMENT APPROACH, SO WE WOULD PAY FOR THE MONEY FIRST AND THEN SEEK REIMBURSEMENT FROM FEDERAL HIGHWAYS FUNDING FOR SUCCESSFUL
ALL RIGHT, I JUST HAD ONE LAST COMMENT ABOUT THE PASSES FOR EMPLOYEES AT THE AIRPORT
ARE WE TALKING TO THE AIRLINES ALSO ABOUT POSSIBLY SURVEYING SOME OF THE EMPLOYEES? BECAUSE I THINK IT'S NOT JUST THE ORCA PASSES THAT PEOPLE ARE STRUGGLING WITH, BUT IT'S ALSO EVEN THOSE WHO DRIVE AND DON'T HAVE THE SHUTTLE SYSTEMS ARE NOT ALWAYS EFFECTIVE
AND SO IS THERE A HOLISTIC APPROACH? AND, I MEAN, WE'LL TAKE THAT UP ON AVIATION
BUT I WAS WONDERING IF YOU JUST HAD SOME COMMENTS AROUND THAT
MOST OF OUR SURVEY WORK HAS BEEN FOCUSED ON CUSTOMERS, SO IT'S SOMETHING WE'D HAVE TO THINK ABOUT
AND I THINK THAT WAS PART OF THE TMA
TYPICALLY, YOU DO A SURETY EFFORT AS PART OF YOUR INITIAL STAND UP OF THE TMA TO UNDERSTAND WHAT THE COMMUTE PATTERNS ARE
YOU CAN SURVEY THE ORGANIZATIONS, BUT YOU ALSO WANT TO KNOW FROM THE CUSTOMERS THEMSELVES SO WE'LL EMBED THAT INTO THE TMA WORK PROGRAM AS WELL
THAT ASSESSMENT WILL BE IMPORTANT
AND THAT CONCLUDES MY COMMENTS AND THANK YOU ALL
ALL RIGHT, HEARING
NO FURTHER QUESTIONS FOR THIS ITEM
IS THERE A MOTION? IN A SECOND
SO MOVED
DON'T ALL SPEAK AT ONCE
YOU DON'T WANT TO SECOND IT? SECOND
ALL RIGHT, THE MOTION HAS BEEN MADE AND SECONDED
CLERK HART, PLEASE CALL THE ROLL FOR THE VOTE
COMMISSIONER, PLEASE SAY IRON NAME WHEN YOUR NAME IS CALLED
THANK YOU
BEGINNING WITH COMMISSIONER CALKINS
AYE
THANK YOU
COMMISSIONER FELLEMAN
AYE
THANK YOU
COMMISSIONER HASEGAWA
AYE
THANK YOU
COMMISSIONER MOHAMMED
AYE
THANK YOU
COMMISSIONER CHO
AYE
THANK YOU
FIVE AYES, ZERO NAYS FOR THIS ITEM
ALL RIGHT, THE MOTION PASSES
THANK YOU VERY MUCH
WE ARE NOW MOVING TO ITEM ELEVEN, PRESENTATIONS AND STAFF REPORTS
CLERK HART, PLEASE READ THE NEXT ITEM INTO THE RECORD
EXECUTIVE DIRECTOR METRUCK WILL THEN INTRODUCE THE ITEM
WE'RE ABOUT TEN MINUTES BEHIND, BUT I THINK WE CAN MAKE IT UP
THANK YOU
THANK YOU
THIS IS AGENDA ITEM ELEVEN A THE 2022 FINANCIAL PERFORMANCE BRIEFING COMMISSIONERS, WE'RE PLEASED TO SHARE THE RESULTS OF LAST YEAR'S FINANCIAL PERFORMANCE WITH YOU
THE PORT OF SEATTLE SAW STRONG FINANCIAL PERFORMANCE IN 2022 DUE TO PRUDENT BUDGETING AND CAREFUL COST MANAGEMENT, WHICH LED TO SIGNIFICANT NET REVENUE
AS YOU'LL SEE, HOWEVER, THERE ARE STILL SIGNIFICANT ECONOMIC HEADWINDS THAT REINFORCE OUR NEED TO CONTINUE TO BE CONSERVATIVE IN OUR BUDGETING
THE RECOVERY OF OUR AVIATION, MARITIME AND ECONOMIC DEVELOPMENT BUSINESSES WAS ROBUST IN 2022, MOSTLY, MOST NOTABLY THE HISTORIC CRUISE SEASON THAT WAS OUR BIGGEST EVER
HOWEVER, 2022 SEA PASSENGER LEVELS WERE BELOW BUDGET AND 11.4% LOWER THAN 1999
AS I MENTIONED, THE REPORT YOU'LL HEAR TODAY IS VERY POSITIVE
AND SO I WANT TO THANK THE ENTIRE PORT STAFF FOR THEIR COMMITMENT TO CAREFUL FINANCIAL MANAGEMENT, TO MAXIMIZING REVENUES WHERE POSSIBLE, AND TO REDUCING EXPENSES
I ALSO WANT TO SHARE MY APPRECIATION TO THE BIDEN ADMINISTRATION AND THE WASHINGTON CONGRESSIONAL DELEGATION FOR THE SIGNIFICANT FEDERAL FUNDING THAT WE WERE ABLE TO UTILIZE TO STRENGTHEN OUR FINANCIAL PERFORMANCE THAT YOU'LL HEAR ABOUT
THE IMPACT OF THOSE KEY TO OUR PLANNING IS UNDERSTANDING WHAT ONE TIME FUNDING IMPACTED IS HOW ONE TIME FUNDING IMPACTED OUR OVERALL RESULTS
FOR EXAMPLE, WHILE REVENUES WERE 43.3 MILLION OVER PUGET, WE WERE SUPPORTED BY FEDERAL PANDEMIC RELIEF DOLLARS THAT ARE EXPIRING AND CAN'T BE COUNTED ON
SIMILARLY, THE OPERATING EXPENSES WERE 23.4 MILLION BELOW BUDGET, MAINLY DUE TO 15.6 MILLION CREDIT RELATED TO THE PORT'S PUBLIC PENSION PLANS OF WHICH WE'VE TALKED ABOUT IN THE PAST
OVERALL, THE STATE OF THE PORT'S FINANCES ARE STRONG, WHICH ALLOWS US TO MAKE ESSENTIAL INVESTMENTS IN OUR WORKFORCE, OUR INFRASTRUCTURE, OUR OPERATIONS, AND THE COMMUNITY
I LOOK FORWARD TO ANSWERING ANY QUESTIONS YOU HAVE AS THE STAFF WALKS THROUGH TODAY'S PRESENTATION
AND THE PRESENTERS ARE DAN THOMAS, CHIEF FINANCIAL OFFICER
MICHAEL TONG, DIRECTOR OF CORPORATE BUDGET, FINANCE, AND BUDGET, AND HAN YEN, INTERIM DIRECTOR, AVIATION, FINANCE AND BUDGET
KELLY ZUBAN, DIRECTOR, SEAPORT FINANCE AND BUDGET
AND I THINK WE HAVE ALSO, THE MANAGING DIRECTORS ARE AVAILABLE IF THERE'S ANY QUESTIONS FOR THEM AS WELL
SO WITH THAT, I'M GOING TO TURN OVER TO DAN
THANK YOU, STEVE
GOOD AFTERNOON, COMMISSIONERS
IF WE COULD PULL UP THE FIRST SLIDE
NEXT SLIDE, PLEASE
SO STEVE COVERED MOST OF THESE HIGHLIGHTS, SO I WON'T GO INTO ANY DETAIL OR REPEATING ANY OF THEM
ONE THING I DID WANT TO NOTE, THOUGH, UNDER THE FOURTH BULLET ABOUT OPERATING REVENUES, ONE OF THE DRIVERS HERE THAT'S NOT SPECIFICALLY LISTED ALSO WAS THE CRUISE REVENUES
BECAUSE OF THE RECORD CRUISE SEASON THAT STEVEN MENTIONED
I DID WANT TO MAKE A NOTE ON THE STATE PENSION CREDIT WHICH STEVE REFERENCED
SO THIS IS THE RESULT OF AN ANNUAL CALCULATION THAT THE STATE DOES AN ACTUARIAL EVALUATION ON THE VALUE OF THE VARIOUS STATE PENSION SYSTEMS, AND WE DON'T GET THAT ACTUAL NUMBER UNTIL THE END OF THE YEAR
SO WHAT WE BUDGET FOR ARE JUST OUR ACTUAL CASH CONTRIBUTIONS TO THE VARIOUS PENSION SYSTEMS BUT TOWARDS THE END OF THE YEAR, WHEN WE GET THE ACTUAL WEAR WHEEL VALUATION, WE GET THE ACTUAL EXPENSE
FROM AN ACCOUNTING STANDPOINT, WE HAVE TO MAKE A NON CASH ADJUSTMENT TO RECONCILE THOSE TWO
AND THE REASON THAT THE CREDIT IS POSITIVE AND IT'S THE FACT THAT IT'S BEEN RUNNING POSITIVE FOR THE PAST FEW YEARS IS LARGELY DUE TO THE OUTPERFORMANCE OF THE STOCK MARKET
SO WE DO EXPECT THAT THAT COULD POSSIBLY REVERSE IN FUTURE YEARS
AS WE KNOW, THE MARKET IS NOT DOING AS WELL THIS YEAR
SO WE COULD SEE A REVERSAL OF THAT TREND IN THE FUTURE AND ACTUALLY HAVE TO BOOK A LITTLE BIT OF A HIGHER EXPENSE THAN WHAT WE HAD BOOKED AS PART OF OUR CONTRIBUTIONS
BUT IN OUR PRESENTATION TODAY, WE SHOW YOU BOTH WITH AND WITHOUT THE CREDIT BECAUSE WE WANT TO BE VERY TRANSPARENT ABOUT OUR ACTUAL PERFORMANCE NET OF THE CREDIT
I ALSO WANT TO JUST MAKE A FEW NOTES ABOUT OUR AUDITED FINANCIAL STATEMENTS, WHICH WE ARE WORKING ON RIGHT NOW
THEY SHOULD BE RELEASED PROBABLY IN THE MAY TIME FRAME
AND I WANTED TO NOTE THAT THERE WILL BE SOME DIFFERENCES IN OUR PUBLISHED FINANCIAL REPORTS COMPARED TO OUR INTERNAL STATEMENTS THEY'RE REVIEWING WITH YOU TODAY
AND THE REASON IS BECAUSE THERE'S BEEN AN ACCOUNTING RULE CHANGE FOR HOW WE HANDLE OPERATING LEASES, WHICH WE IMPLEMENTED FOR THE FIRST TIME FOR 2022
AND IT REALLY HAS TO DO WITH THAT DIFFERENCE IN HOW WE ACCOUNT FOR OPERATING OPERATING LEASES
ESSENTIALLY, OPERATING LEASES IN THE FUTURE WILL BE HANDLED MORE LIKE CAPITAL LEASES AS OPPOSED TO HOW WE'VE BOOKED THEM IN THE PAST
INITIALLY, WE WILL BOOK THEM ON OUR BALANCE SHEET AS ASSETS AND LIABILITIES, BUT ON THE INCOME STATEMENT, WE'RE GOING TO HAVE TO BREAK OUT OUR OPERATING LEASE PAYMENTS INTO OPERATING REVENUES AND NON OPERATING REVENUES
AND THAT'S BECAUSE OF THIS NEW ACCOUNTING PRONOUNCEMENT
AND ON THE INCOME STATEMENT, THE EFFECT WILL BE A LITTLE BIT OF A DIFFERENCE IN HOW WE'RE COMPARING TO OUR NUMBERS HERE, BECAUSE THE OPERATING REVENUE COMPONENT WILL ACT MORE LIKE A PRINCIPAL PAYMENT, WHEREAS THE NON OPERATING COMPONENT WILL BE MORE LIKE AN INTEREST REVENUE
THAT'S HOW THEY'LL BE BOOKED ON OUR PUBLISHED FINANCIAL STATEMENTS
SIMILARLY, ON FOR OPERATING LEASE EXPENSES, WE'LL BE BREAKING THEM INTO OPERATING AND NON OPERATING COMPONENTS
AND SINCE THE MAJORITY OF OUR LEASES WE SERVE AS THE LESSOR, THE GREATEST IMPACT WILL BE ON OUR OPERATING REVENUES AND ALSO AN INCREASE IN NON OPERATING REVENUES, WHICH BASICALLY OFFSET ONE ANOTHER SO THAT THEY REALLY HAVE NO IMPACT ON THE BOTTOM LINE
WE HAVE VERY FEW LEASES WHERE WE ARE THE LESSEE, SO THERE'S VERY LITTLE IMPACT ON OUR EXPENSES
AND JUST TO GIVE YOU A SENSE OF THE ORDER OF MAGNITUDE, OUR NET INCOME ON OUR PUBLISHED FINANCIAL STATEMENTS, NET OPERATING INCOME WILL BE ABOUT $11 MILLION LESS THAN WHAT YOU'RE SEEING IN THE NUMBERS TODAY
AND WE HAVE ELECTED NOT TO USE THAT APPROACH FOR OUR INTERNAL REPORTING BECAUSE WE FELT WE WANT TO BE MORE TRANSPARENT ABOUT OUR ACTUAL PERFORMANCE
AND WE FELT THAT NEW ACCOUNTING RULE CAN DISTORT THE ACTUAL PERFORMANCE
YOU HAVE THE FULL REPORT AS PART OF YOUR PACKET
AND WE ALSO HAVE A LOT MORE INFORMATION IN THE APPENDIX TO TODAY'S PRESENTATION
SO WITH THAT, I'LL TURN IT OVER TO HAN TO TALK ABOUT THE AVIATION FINANCIAL RESULTS
HAN, AS STEVE MENTIONED, IS SERVING AS OUR INTERIM DIRECTOR OF AVIATION FINANCE AND BUDGET UPON THE RECENT RETIREMENT OF MORGAN ANDERSON
SO WITH THAT, I'LL TURN IT OVER TO HAN
GREAT
THANK YOU SO MUCH, DAN
GOOD AFTERNOON, COMMISSIONERS
MY NAME IS HAN WYNN, AND I AM THE INTERIM DIRECTOR OF AVIATION, FINANCE AND BUDGET
NEXT SLIDE, PLEASE
THE PASSENGER FORECAST FOR 2022, THE PASSENGER VOLUME REBOUNDED AND WAS AT 20
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2022 PASSENGER VOLUME REBOUNDED AND WAS AT 27.1% HIGHER THAN THE FULL YEAR OF 2021
FOR 2023, WE ARE FORECASTING A 5.7% LOWER THAN THE 2019 LEVEL
WE ARE ANTICIPATING A RETURN TO THE 2019 LEVEL PASSENGER LEVEL RECOVERY BY 2025
NEXT SLIDE, PLEASE
OKAY, NEXT SLIDE, PLEASE
THANK YOU
WE'RE PLEASED TO REPORT THAT THE SEATAC'S FINANCIAL PERFORMANCE CAME IN EXCEPTIONALLY WELL
I WILL HIGHLIGHT THE MAJORITY COMPONENT OF THIS SLIDE
THE FOLLOWING ONE SLIDE BACK
THANK YOU
I WILL HIGHLIGHT THE MAJOR COMPONENT OF THIS SLIDE, AND FURTHER DETAILS WILL BE PRESENTED IN THE FOLLOWING SLIDES
MOVING DOWN TO THE NET OPERATING INCOME, AFTER THE FEDERAL RELIEF, THE NET OPERATING INCOME WAS AT 425,000,000, WHICH IS $68 MILLION HIGHER THAN BUDGET
SOME OF THE MAJOR DRIVERS INCLUDE WE MAXIMIZE THE USE OF THE FEDERAL RELIEF GRANTS
WE DILIGENTLY MANAGE THE OPERATING EXPENSES TO SLIGHTLY LOWER THAN BUDGET
THE PENSION CREDIT, AS YOU HEARD OF $12 MILLION, PROVIDED A LARGER VARIANCE
OUR TOTAL REVENUES ENDED IN A HIGHER THAN BUDGET
MAJORITY OF THAT IS DUE TO THE NON AERONAUTICAL REVENUES
THAT WILL BE DISCUSSED IN DETAILS LATER
SO MOVING DOWN TO THE CHART, IN THE LOWER CHART
THE KEY MEASURES ARE ALSO WELL ABOVE BUDGET
THE FEDERAL RELIEF GRANTS SUPPORT THE GROWTH OF THE AIRPORT DEVELOPMENT FUND BALANCE AND HIGHER DEBT SERVICE COVERAGE
ANOTHER METRUCK IS OUR COST PER EMPLOYMENT, WHICH IS HIGHER DUE TO THE LOWER EMPLOYMENT THAN BUDGET
THE CAPITAL SPENDING CAME IN LOWER THAN ANTICIPATED DUE TO SEVERAL PROJECT DELAYS
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THE OPERATING EXPENSES CAME IN AT 3.8% FAVORABLE, DRIVEN PRIMARILY DUE TO THE DELAY IN THE EXPENSE SPENDING IN THE AIRLINE REALIGNMENT AND THE 12.3 MILLION OF PENSION CREDIT
THE FAVORABLE VARIANCES WERE OFFSET WITH LESS SALARY CHARGES TO CAPITAL AND THE SNOW EVENT THAT HAPPENED
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ON THE NON AERONAUTICAL REVENUES
THE NON AERONAUTICAL REVENUES IS BASED PRIMARILY ON AIRLINE COST RECOVERY
OUR FINANCE TEAM MANAGED EXTREMELY WELL TO MAXIMIZE THE USE OF THE FEDERAL COVID RELIEF GRANTS AND THE PASSENGER FACILITY CHARGES TO REDUCE THE AIRLINE RATE BASED COST
THE ACTUAL REVENUE WAS AT 403,000,000, SLIGHTLY HIGHER THAN BUDGET
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ON THE NON AERONAUTICAL REVENUE SIDE FOR 2022, WE CAME IN AT 276,000,000 WITH THE COVID CONCESSION GRANTS
THIS REFLECTED THE PASSENGER VOLUME INCREASE BY 27.1% COMPARED TO PRIOR YEAR, CONTRIBUTING TO A HIGHER SPENDING IN NON AIRLINE REVENUES
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AS YOU CAN SEE, THE NON AERONAUTICAL REVENUE EXCEEDED BUDGET AND THE LANDSLIDE REVENUES CONTINUE TO RECOVER STRONGLY, ESPECIALLY IN PARKING, RENTAL, CAR AND GROUND TRANSPORTATION DUE TO HIGH DEMAND FROM RETURNING PASSENGERS
AIRPORT DINING AND RETAIL REVENUE REFLECTS A REDUCTION IN THE OPERATING REVENUE DUE TO THE FEDERAL CONCESSION RELIEF GRANTS, BUT THESE ARE OFFSET BY THE NON OPERATING GRANT REVENUE
SO IT'S A CASH FLOW NEUTRAL
ON THE OTHER REVENUES, IT REFLECTS A DELAY IN THE AMEX LOUNGE OPENING AND LOWER LOUNGE VISIT, WHICH PARTIALLY OFFSET BY STRONG PERFORMANCE IN THE INFLIGHT KITCHEN REVENUE AND ALL CLEAR CONCESSION REVENUES
NEXT SLIDE PLEASE
AS STEVE MENTIONED, THE FEDERAL RELIEF GRANTS, WE RECOGNIZE THAT BUILDING OF OUR CASH FUND BALANCE IS CRUCIAL TO THE SUSTAINING THE FINANCIALLY DURING A MAJOR ECONOMIC EVENT
DURING THE PANDEMIC, WE STRATEGICALLY MANAGED THE $410,000,000 OF THE COVID GRANTS WELL TO SUCCEED OUTPERFORMANCE OBJECTIVES FOR 2022, 149,000,000 IN FEDERAL RELIEF GRANTS WERE USED AND THIS HELPED US INCREASE OUR CASH FUND BALANCE FOR 2023
THERE IS ABOUT 13.8 MILLION AVAILABLE OF THE FEDERAL RELIEF GRANTS REMAINING
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OUR DEBT SERVICE COVERAGE CAME IN AT 2.64 VERSUS A 2.3
SO BASICALLY THE DEBT SERVICE IS SAYING THAT IS WHAT IS OUR CASH AVAILABLE AFTER OUR DEBTS PAYING OUR DEBT SERVICE
SO IT'S A STRONG BALANCE, A STRONG RATIO OF 2.64
THE THREE MAIN DRIVERS INCLUDE WE HAD HIGHER NON AERONAUTICAL REVENUES, WE WERE ABLE TO MAINTAIN OUR OPERATING EXPENSES AND ALSO WITH THE PENSION CREDIT
WE MADE A DECISION TO CLAIM AS MUCH OF THE FEDERAL RELIEF GRANTS IN 2022 AND REDUCE THE PFC REVENUES USED TO OFFSET DEBT SERVICE
INSTEAD, WE ARE BUILDING THE CASH FUND BALANCE FOR 14 MONTHS OF ONM IN 2022 TO MANAGE FINANCIAL SUSTAINABILITY
WE ENDED THE YEAR WITH A STRONG ADF BALANCE
SO NEXT SLIDE, PLEASE
SO, AS YOU CAN SEE, OUR BEGINNING BALANCE FOR THE YEAR WAS THAT 341
AND WE BUILT THE CASH FUND BALANCE AND WE ENDED THE YEAR AT 494,000,000
AND THIS HAD A CUSHION OF ABOUT $13 MILLION HIGHER THAN OUR TARGET
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ON THE CAPITAL SPENDING SIDE, WE WERE SPENDING AT ABOUT 60% AGAINST BUDGET
SEVERAL OF THE PROJECTS WERE DELAYED DUE TO DESIGN DELAY ON THE SEATAC GATEWAY
THIS IS THE NORTH MAIN TERMINAL PROJECT
OUR BAGGAGE CLAIM PROJECT DELAY WERE DUE TO THE MATERIALS AND THE IAF OPENING OUR C CONCOURSE
THERE WERE COST LOADING OF THE SCHEDULE UP FRONT
SO WE CORRECTED THAT LOADING OF THE COST SCHEDULE
FOR THE NOISE PROGRAM, WE HAVE SEVERAL
THERE WAS DELAY IN THE CASH FLOW SPENDING AND A FEW OF THE APARTMENTS PROGRAM, THE SOUND INSTALLATIONS
THE PARTICIPATION RATE IS NOT THERE FOR THE OTHER PROJECTS
THERE ARE SEVERAL REASONS FOR THE MAJOR DELAY DUE TO SCHEDULE, THE RESULT OF THE SUPPLY CHAIN, LONG LEAD TIME DISRUPTION, AND THE DURATION IN OUR PROCUREMENT PROCESS THAT'S TAKING LONGER THAN EXPECTED
SO AT THIS TIME, I CAN TURN OVER TO KELLY ZOOP IN GO, THROUGH THE MARITIME AND EDD UNLESS THERE'S QUESTIONS
IF YOU WANT TO, WE CAN GO THROUGH THE ENTIRE THING
GREAT
CIRCLE BACK
THANK YOU
ALL RIGHT, NEXT SLIDE, PLEASE
THANKS, HAN, FOR THE PRIOR PRESENTATION
GOOD AFTERNOON
COMMISSIONERS AND EXECUTIVE DIRECTOR METRUCK
THE NEXT SEVERAL SLIDES, I WILL TAKE YOU THROUGH THE SEAPORT FINANCIAL PERFORMANCE IN 2022
PARDON ME
MANAGING DIRECTORS STEPHANIE JONES STEVENS AND DAVE MCFADDEN ARE AVAILABLE
IF YOU HAVE ANY QUESTIONS OR CLARIFICATIONS
WE'D LIKE TO START WITH SOME REVENUE DRIVING METRICS FOR KEY BUSINESSES AND PROPERTIES
AFTER AN UNEXPECTEDLY HIGH CARGO VOLUME IN 2021, WE RETURNED IN 2022 TO A LEVEL THAT IS IN LINE WITH WHAT WAS BUDGETED AND MORE OF A HISTORICAL NORM
CRUISE HAD BY FAR THE MOST CALLS IN HISTORY AND SLIGHTLY EXCEEDED THE 75% OCCUPANCY AMOUNT BUDGETED
THIS ALSO GENERATED A RECORD HIGH IN PASSENGER VOLUMES AS WELL
GRAIN VOLUMES RETURNED TO MEAN AND THE SCHILSHOLE BAY MARINA IMPROVED OCCUPANCY BY ALMOST 4% YEAR OVER YEAR FROM 2021
THE KEY DRIVER AT SCHULTZ BAY MARINA WAS PROCESS IMPROVEMENTS IMPLEMENTED BY THE REC BOATING TEAM OUT THERE THAT HAVE HELPED SIGNIFICANTLY IMPROVE TURNAROUND TIMES FOR MORTGAGE
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FINANCIALLY, THE SEAPORT HAD AN OUTSTANDING YEAR EXCLUDING PENSION ADJUSTMENTS
OPERATING INCOME WAS $20 MILLION BETTER THAN BUDGET AND NEARLY $16 MILLION ABOVE 2021
CREWS REPRESENTED THE MAJORITY OF THE GROWTH, ALONG WITH A SUCCESSFUL BACK HALF OF THE YEAR FOR OUR CONFERENCE AND EVENT CENTERS
WE EXPECT TO SEE INCREMENTAL REVENUE GROWTH IN 2023 AS CRUISE SHIPS GET CLOSER TO FULL OCCUPANCY AND THE TERMINAL 106 GROUND LEASE BEGINS TO TAKE WITH TREMBLE, CROW BEGINS TO TAKE FULL EFFECT
AFTER THAT, REVENUE WILL START LEVELING OUT A BIT UNTIL THE TERMINAL 91 UPLANDS BEGINS LEASING OR A NEW BUSINESS OR INVESTMENT TAKES SHAPE
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ONE MORE
MARITIME HAD A SUCCESSFUL 2022 FINANCIALLY BETWEEN A STRONG RECOVERY IN CRUISE AND IMPROVED UTILIZATION OF OUR MARINAS
EXPENSES INCLUDED ABOUT $1.5 MILLION OF CAPITAL REVERTING TO EXPENSE, PRIMARILY CENTERED ON THE CLOSING OF FISHERMAN'S TERMINAL GATEWAY BUILDING PROJECT DELAYS FROM PIER 66, SHORE POWER AND OTHER SMALL PROJECTS HAVE PUSHED SOME CAPITAL OUT
AND DO NOTE THERE ARE AN ADDITIONAL 17 SLIDES IN THE APPENDIX FOR ENVIRONMENTAL, WATERFRONT PROJECT MANAGEMENT AND OTHERS SHOWING ACHIEVEMENTS SUCH AS AGREEING TO PURCHASE RENEWABLE NATURAL GAS ACROSS 36 OF OUR WATERFRONT BUILDINGS
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THIS SLIDE ELABORATES FURTHER ON THE 2022 FINANCIAL RESULTS
WE EXCLUDED PENSION ADJUSTMENTS, SO THE VARIANCES ARE APPLES TO APPLES
AS MENTIONED BEFORE, THERE WAS NEARLY 50% REVENUE GROWTH IN MARITIME AS WE SAW THE IMPACT OF A FULL SEASON OF CRUISE EXPENSES GREW 25%, OR JUST OVER HALF THE RATE OF REVENUE
THIS EXPENSE GROWTH WAS SEEN PORT WIDE IN 2021 INCLUDED, AND IT INCLUDED SIGNIFICANT AUSTERITY MEASURES THAT WE HAD IN 2021 BASED ON TARGETED HIRING FREEZES AND SOME PANDEMIC RELATED REVENUE LOSS
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THE STORMWATER UTILITY OPERATING INCOME WAS ABOUT $700,000 FAVORABLE TO BUDGET
MOST OF THIS WAS DRIVEN BY SOME OPEN MAINTENANCE POSITIONS
AT A YEAR END, STORMWATER UTILITY RESERVE FUND BALANCE WAS $5.2 MILLION, OR ABOUT $1.7 MILLION HIGHER THAN OUR TARGET, WHICH IS 50% OF REVENUE
THIS BALANCE WILL BE MONITORED AND FACTORED IN WHEN THE TEAM PRESENTS TO COMMISSION THE STRATEGY AND PLAN FOR RATES THIS FALL
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HERE IS A SNAPSHOT OF THE NORTHWEST SEAPORT ALLIANCE FINANCIAL PERFORMANCE FOR 2022
THE CONTAINER VOLUMES WERE DOWN 11.4% FROM 2021, WHICH IMPACTED THE MAG REVENUE OR MINIMUM ANNUAL GUARANTEE REVENUE
AT TERMINAL 18, THERE WERE SOME NEW LEASES AND INCREASED BRAKE BULK VOLUME THAT HELPED OFFSET THE LOWER CONTAINER VOLUMES
THE BIGGEST DRIVER TO THE FAVORABLE DISTRIBUTABLE INCOME WAS THE TIMING OF MAINTENANCE PROJECTS AND LOWER ADMINISTRATIVE COST
SO WE BASICALLY GOT HIGHER DISTRIBUTABLE INCOME THAN WE THOUGHT WE WOULD GET
MOST OF THAT WAS DUE TO SAVINGS AT THE SEAPORT ALLIANCE
OKAY, NEXT SLIDE, PLEASE
HERE YOU'LL SEE THAT DISTRIBUTABLE INCOME AS THIS IS THE PNL FOR THE JOINT VENTURE, ABOUT $6 MILLION
OF THAT WE WERE ABOUT $6 MILLION FAVORABLE TO BUDGET AND DISTRIBUTABLE INCOME FROM THE ALLIANCE, AND ANOTHER MILLION AND A HALF FAVORABLE OR HIGHER THAN EXPECTED FROM TENANT REIMBURSEMENTS AND TEMPORARY USE OF THE PORT OF SEATTLE SECTION OF TERMINAL 46 THAT WAS LEASED OUT ON SOME TEMPORARY LEASES FROM PCMC AND PMA
FROM THE EXPENSE SIDE, THERE WAS A LIABILITY BOOKED RELATED TO THE DISPOSAL OF FREE PRODUCT THAT WAS RELEASED UNEXPECTEDLY WHILE DRIVING A PILE DURING THE INSTALLATION OF THE BULL RAIL RELATED TO THE TERMINAL FIVE DEVELOPMENT
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NOW I'LL SPEAK ABOUT ECONOMIC DEVELOPMENT DIVISION
DESPITE SOME COVID VARIANT HEADWINDS IN Q ONE OF 2021, THE BELL STREET PARKING GARAGE, CONFERENCE AND EVENT CENTERS, ALONG WITH OUR REAL ESTATE LEASES OUTPERFORMED THE REST OF THE YEAR AND ONLY MISSED A REVENUE BUDGET BY $1 MILLION
EXPENSES CAME IN UNDER BUDGET BY $4 MILLION
IN PART DUE TO THE COST CONTAINMENT AT CONFERENCE AND EVENT CENTERS, WHICH LED TO THE HIGHEST GROSS MARGIN EVER OUT THERE
THERE WAS ALSO SIGNIFICANT SAVINGS AND ECONOMIC DEVELOPMENT GRANTS AS WE MOVED TO A TWO YEAR MATCHING CYCLE
WE ANTICIPATE THIS GRANT SPENDING TO INCREASE SIGNIFICANTLY IN 2023 AS CITIES COMPLETE THEIR TWO YEAR PROJECTS
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EXCLUDING THE PENSION ADJUSTMENTS, THE OPERATING LOSS FOR ECONOMIC DEVELOPMENT DIVISION IMPROVED BY 4.6 MILLION FROM 2021 TO JUST UNDER 6.5 MILLION, WHICH IS THE MOST FAVORABLE WE'VE HAD SINCE THE FORMATION OF THE NORTHWEST SEAPORT ALLIANCE IN 2015
CAPITAL SPENDING WAS 9 MILLION, OR ABOUT 86% OF BUDGET, AS MOST OF THE APPROVED PROJECTS FURTHER ALONG, THE CONE OF UNCERTAINTY ARE COMING IN AS EXPECTED
AGAIN, THERE IS SIGNIFICANTLY MORE DETAIL IN THE APPENDIX AND PLEASE REACH OUT IF YOU WANT A DEEPER DIVE INTO A SPECIFIC BUSINESS OR PROPERTY
THANKS
I'LL GO AHEAD AND TURN IT OVER TO MICHAEL TONG NOW
BRING IN MICHAEL TONG NOW TO GO THROUGH THE CENTRAL SERVICES RESULTS AND ALSO THE PORT WIDE VIEW
THANKS, KELLY
GOOD AFTERNOON, COMMISSIONER AND EXECUTIVE DIRECTOR METRUCK
THE TABLE ON THE LEFT IS A SUMMARY OF THE FINANCIAL FOR CENTRAL SERVICES
ON THE REVENUE SIDE, WE WERE 2.3 MILLION FAVORABLE TO THE BUDGET
IF YOU LOOK AT THE FAR RIGHT COLUMN THERE, AND MAINLY DUE TO A COUPLE OF REASONS
ONE IS THAT ALL FOR THE POLICE DEPARTMENT
ONE IS THE BUDGET FOR FEATURES REVENUE, AND THE OTHER IS THE ADJUSTMENT FOR THE STATE PENSION CREDIT FOR THE ENFORCEMENT OFFICER THERE
AND ON THE EXPENSES SIDE, WE WERE JUST 174,000 FAVORABLE TO THE BUDGET
WITHOUT THE PENSION CREDIT AND WITH THE PENSION CREDIT, WE WERE 6.8 MILLION FAVORABLE TO THE BUDGET
ON THE CAPITAL EXPENDITURE, WE SPENT ONLY 6.2 MILLION OF THE 10.9 MILLION OF THE 2022 BUDGET
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THIS CHART ON THE LEFT SAW THE OPTING EXPENSES, WHICH IS ALMOST WHITE ON THE BUDGET, 0.1% FAVORABLE
THAT'S THE CLOSEST AND AS GOOD AS WE CAN GET TO THE BUDGET
WHILE THE BUDGET VARIANTS WERE VERY SMALL, THERE WERE SOME INS AND OUTS FROM DIFFERENT ACCOUNTS WHICH SAW ON THE LEFT HAND SIDE OF THE CHART THE SALARY AND BENEFIT COMBINED WITH JUST 1.1 MILLION, OR 0.5 OF THE BUDGET FAVORABLE TO THE BUDGET
OUTSIDE SERVICES WERE 2 MILLION UNDER BUDGET, BUT OTHER EXPENSES WERE 2.3 MILLION OVER BUDGET AND MAINLY DUE TO A COUPLE OF REASONS
ONE IS THE UNBUDGETED LEGAL EXPENDITURE, THE OTHER IS THE INSURANCE PREMIUM, WHICH IS HIGHER THAN WHAT WE EXPECTED WHEN WE PUT THE BUDGET TOGETHER
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THIS CHART SHOWED THE OPERATING EXPENSES FROM THE COVID-19,019 TO 2022
AS YOU CAN SEE FROM THE CHART HERE, WE HAVE BEEN ABLE TO KEEP THE COST RELATIVELY FACT FOR THREE YEARS FROM 2019 TO 2021, BY TAKING SOME POTENT BUDGET MANAGEMENT MEASURE THAT OUR EXECUTIVE DIRECTOR MENTIONED A LITTLE BIT
EARLIER, INCLUDING THE HIRING FEES AND REDUCED TRAINING AND OTHER EXPENDITURE, ESPECIALLY IN 2000 AND 22,021, WHILE ALSO INCREASING SPENDING ON SOME OF THE COMMITTEE PROGRAMS SUCH AS THE SOUTH KING COUNTY COMMITTEE IMPACT FUND AND THE YOUTH CAREER LAUNCH PROGRAM
WE HAVE BEEN PRETTY SIGNIFICANTLY INCREASED THOSE EXPENDITURE ON SOME OF THE COMMITTEE PROGRAM FOR THE PAST FEW YEARS
YOU CAN ALSO SEE THE EXPLANATION ON THE 2022 BUDGET VARIANCE AS WELL AS THE CHANGES FROM 2021 TO 2022
ACTUAL COMPARISON ON THE WHITE SIDE OF THE SLIDE HERE
SO I WON'T GO INTO DETAIL UNLESS YOU HAVE QUESTIONS
NEXT SLIDE PLEASE
NEXT ONE
ONE MORE
THANK YOU
THIS CHART SHOWED THE BREAKDOWNS OF THE OPERATING REVENUES FROM THE COVID 2019 TO THE 2022 BY OUR NAUTICAL REVENUE, WHICH IS THE BLUE BAR HERE, AND ALSO THE AIRPORT REVENUE, WHICH IS THE GREEN BARS
AND THEN THE LIGHT BLUE ONE IS THE LONG AIRPORT REVENUES
AND ALSO THE RED ONE IS THE EXPENSES OVER THE PAST FEW YEARS
AND THE GREEN LINE IS THE EXCUSE ME, THE BLUE LINE IS THE NET OPERATING INCOME
JUST WANT TO HIGHLIGHT A COUPLE OF POINTS HERE FOR THIS CHART FOR YOU
FIRST ONE IS THE OPERATING REVENUES WENT UP FROM THE 700 MILLION MARKED IN 2019 PER COVID LEVEL TO OVER 800 MILLION LAST YEAR
AND YOU CAN ALSO SEE A PRETTY STEADY CLIMB IN TERMS OF THE OFFERING REVENUES FROM 2020 TO 2022
AND THEN THE SECOND POINT I WANT TO MAKE IS THAT THE 2022 PORTWIDE OPERATING REVENUES WERE ALSO 43 MILLION HIGHER THAN THE BUDGET
SO PRETTY STRONG PERFORMANCE THERE
LAST POINT THAT I WANT TO MAKE IS THE NET OPERATING INCOMES IN 2022 ALSO EXCEED THE 2019 PER COVID LEVEL AND ALSO 51 MILLION BETTER THAN THE BUDGET
THE LAST ONE THAT I ALSO WANT TO POINT OUT IS THAT WE INVESTED 11.6 MILLION IN 17 COMMITTEE PROGRAM IN 2022
AND YOU CAN SEE THE DETAIL IN SLIDE
I THINK IT'S 90 INDE IN THE APPENDIX
NEXT SLIDE PLEASE
LAST BUT NOT LEAST, THIS IS THE PORTFOLIO CAPITAL SPENDING FOR THE PAST FEW YEARS
JUST WANT TO POINT OUT THAT WE SPEND ONLY 340,000,000, WHICH IS A LITTLE BIT BELOW 60% OF THE 2022 BUDGET
AND THE MAIN REASON YOU ALREADY HEARD FROM HAN AND KELLY ABOUT SOME OF THOSE PROJECT DELAYS
WITH THAT, HAPPY TO ANSWER ANY QUESTIONS
SO IN SUMMARY, AGAIN, WE'RE VERY PLEASED WITH OUR PERFORMANCE IN 2022
AND AS STEVE ALLUDED TO, HOWEVER, THERE STILL IS POTENTIAL ECONOMIC UNCERTAINTY AHEAD OF US
SO WE'LL BE MONITORING THAT AS WE GO THROUGH THE YEAR
WE'D BE HAPPY TO ANSWER ANY QUESTIONS
GREAT
THANK YOU SO MUCH GUYS
I APPRECIATE THE THOROUGH PRESENTATION
I'LL OPEN IT UP TO COMMISSIONERS FOR QUESTIONS
COMMISSIONER CALKINS, IN OUR RECENT CONVERSATION AT THE NORTHWEST SEAPORT ALLIANCE ALONG THE SAME LINES, ONE OF THE ELEMENTS WE TALKED ABOUT WAS THE THINGS WE CAN'T CONTROL
AND PARTICULARLY IN MARITIME CARGO OPERATIONS, THE PURVIEW OF THE NORTHWEST SEAPORT ALLIANCE, THERE ARE A LOT OF DARK CLOUDS THAT MAY SIGNIFY NOTHING, OR WE'VE BEEN TALKING ABOUT RECESSION NOW FOR A GOOD YEAR AND A HALF
AND SO FAR RIGHT, WE'RE WHISTLING PAST THE GRAVEYARD
BUT I'D LOVE TO JUST HEAR YOUR THOUGHTS ON IF THERE ARE ANY PARTICULAR SYSTEMIC OR GLOBAL RED FLAGS OUT THERE THAT YOU WOULD SIGNAL FOR US TO WATCH CLOSELY
THAT COULD LEAD TO ISSUES THAT WOULD SIGNIFICANTLY ALTER OUR BUDGET
AND IF YOU SEE ANY GREEN FLAGS OUT THERE AS WELL, THAT MIGHT BE GOOD NEWS THAT WE AREN'T NECESSARILY BANKING ON
BUT IF CERTAIN THINGS COME TO PASS, HOW COULD THAT ALTER THE POTENTIAL OUTLOOK TO THE GOOD? SURE
WELL, CERTAINLY INFLATION CONTINUES TO BE A BIG CONCERN
LOOKS LIKE WE SAW A LITTLE BIT OF A MODERATION IN THE NUMBERS RELEASED TODAY, BUT HOW THAT'S GOING TO PLAY OUT? AND WILL THE FEDERAL RESERVE BE SUCCESSFUL IN TAMING INFLATION WITHOUT ACTUALLY TRIGGERING A RECESSION? I THINK IT'S KIND OF $64,000 QUESTION OUT THERE
AND IF WE DO ACTUALLY TIP INTO A RECESSION, I THINK IT'S ANYBODY'S GUESS
WE'RE HOPEFUL OR NOT
I THINK THAT INFORMATION I'VE SEEN IS THAT IF WE DO GO INTO RECESSION, SHOULD BE A MILD RECESSION
CERTAINLY THE RECENT NEWS ABOUT BANK FAILURES DOES NOT BODE WELL FOR THE ECONOMY IF THEY WERE TO BECOME MORE ENDEMIC
BUT SO FAR IT LOOKS LIKE THAT'S RELATIVELY CONTAINED AND THE FEDERAL GOVERNMENT SEEMS TO BE WILLING TO STEP IN AND SUPPORT THOSE BANKS
I THINK YOU'RE RIGHT
ON THE CONTAINER SIDE IN PARTICULAR, WE'VE SEEN A PRETTY SIGNIFICANT DROP OFF, I THINK, AS THE INVENTORY OVERHANG HAS SORT OF TAKEN INTO EFFECT
I THINK SOME ARE OPTIMISTIC THAT THAT'S GOING TO PICK UP LATER IN THE YEAR, BUT I THINK IT'S STILL ANYBODY'S GUESS
HOW THAT'S GOING TO REALLY PLAY OUT IN TERMS OF GOOD NEWS, I THINK WE'RE STILL LOOKING AT VERY STRONG LABOR MARKETS, WHICH EVERYONE SEEMS TO BE PLEASED WITH, WHICH ALSO CAN ALSO TEND TO LEAD TO HIGHER INFLATION
BUT IT'S STILL GOOD NEWS TO SEE LOTS OF EMPLOYMENT OUT THERE
SO IT'S KIND OF MIXED SIGNALS RIGHT NOW
I THINK WE'RE IN A PERIOD OF GREAT AND THERE'S UNCERTAINTY, AND WE CAN CERTAINLY HOPE THAT THE GLASS IS HALF FULL AND WE DO BETTER THAN WE EXPECT
BUT WE ARE MONITORING THESE TRENDS AND WOULD BE PREPARED TO MAKE ADJUSTMENTS TO OUR BUDGETS IF NECESSARY AS WE GET THROUGH THE YEAR WITH THE AMOUNT OF CAPITAL WE'RE INVESTING IN IN THE NEXT FEW YEARS
HOW MUCH OF A DIFFERENCE DOES THE INCREASED COST OF CAPITAL MEAN FOR THE FACT THAT OUR BONDS, WE NEED TO OFFER THEM HIGHER RATES THAN IT HAS SOME EFFECT, BUT IT'S NOT HUGE
AS YOU KNOW, WE GENERALLY BENEFIT FROM LOWER TAX EXEMPT RATES, SO THAT CERTAINLY HELPS US
BUT WE WILL BE PAYING MORE FOR DEBT
WE DON'T HAVE ANY DEBT PLANNED FOR THIS YEAR
CURRENTLY, WE'RE DOUBLE CHECKING OUR NUMBERS AND OUR CASH FLOW FORECAST, BUT WE'RE THINKING WE WILL GET BY THIS YEAR WITHOUT A NEW MONEY ISSUE
SO IF WE CAN GET BY FOR ANOTHER YEAR AND START SEEING INTEREST RATES POTENTIALLY MODERATE WITHIN A YEAR
THAT WOULD BE BENEFICIAL AS WELL
COMMISSIONER FUCKING ACT
DAN, DO YOU WANT TO COMMENT ON OUR RATINGS AND HOW THAT APPLIED TO OUR RATINGS GOING UP? ACTUALLY, AS PART OF OUR BOND ISSUES LAST YEAR WE DID SEE UPGRADES FROM STANDARD IMPORTS, I BELIEVE IT WAS SORT OF UPGRADED MANY OF SOME OF OUR BOND ISSUES ACROSS THE BOARD, INCLUDING OUR GEO BONDS AND REVENUE BONDS AT THE MARGIN IT HELPS, BUT AGAIN, IT'S NOT NECESSARILY A HUGE IMPACT, BUT CERTAINLY EVERY LITTLE BIT HELPS
THANK YOU, DAN
COMMISSIONER CALKINS, WITH REGARD TO THE CONTAINER CARGO VOLUME SEAPORT ALLIANCE, I THINK ONE OF THE LONGER TRENDS SHIP IS THAT THE MANUFACTURING BASE COVID MORE TO THE SOUTH ASIA PART OF ASIA AND PASS THROUGH GOING THROUGH MORE TO THE EAST COAST AND THE SOUTHERN PORT
SO YOU ARE SEEING LAST YEAR THOSE ARE PRETTY SIGNIFICANT INCREASE IN TERMS OF THE CARGO VOLUME
THE WEST COAST IN GENERAL HAVE SOME REDUCTION
THOSE ARE PROBABLY EVEN LONGER THREAT AND TREND FOR THE COMING YEARS
COMMISSIONER FELLEMAN, THANK YOU VERY MUCH
I APPRECIATE THAT CONCLUSION
THE STATE OF THE PORT IS GOOD
IT'S IMPORTANT TO PUNCHLINE AT THE END OF THE STORY THE FIGURE ON 31 WHERE WE HAVE THE PORT WIDE FINANCIAL SUMMARY
IT'S ALWAYS GOOD TO SEE ALL IN ONE PICTURE, RIGHT? FOR US AQUATICALLY INCLINED FOLKS, THOUGH, TO HAVE THE CATEGORY OF NON AIRPORT REVENUES, IT SEEMS LIKE A BIG CATEGORY THAT INCLUDES A LOT OF THINGS
IT DOESN'T SAY MARITIME ANYWHERE
BUT MORE TO THE POINT, SINCE MARITIME, SINCE THE SEAPORT ALLIANCE IS SUCH A SIGNIFICANT PORTION OF MARITIME AND THOSE TRENDS ARE NOT OPTIMISTIC, THEY'RE NOT POSITIVE AT THE MOMENT
I THINK WATCHING THE PERCENTAGE OF SEAPORT ALLIANCE IN OUR REVENUES IS VALUABLE IN TERMS OF TRACKING SOME OF OUR DECISION MAKING
AND I THINK HAVING MARITIME PERIOD BROKEN OUT OR AT LEAST SEAPORT ALLIANCE IS INSTRUCTIVE AS WE MAKE INVESTMENT DECISIONS ANYWAY, SOMETHING OTHER THAN JUST NON AIRPORT
RIGHT? WELL, IN KELLY'S PRESENTATION HE DOES BREAK OUT THE MARITIME VERSUS THE SEAPORT ALLIANCE AND AS WELL AS THINGS LIKE BUT FOR ONE STOP SHOP, THAT'S SUCH A VALUABLE PICTURE TO BE ABLE TO TRY TO EXPLAIN THE OVERALL AND AGAIN, IF IT WASN'T A SIGNIFICANT PORTION OF OUR MARITIME BUDGET, SURETY THAT WOULD BE LESS OF IT
ONE OF THE THINGS THAT I RAISED LAST TIME WHEN WE WERE PASSING THE BUDGET, WE TALK ABOUT THE OPERATIONAL IMPROVEMENTS THAT SHILSHOLE AS ATTRIBUTING TO THIS FINANCIAL BANK
WE ALSO INCREASED THE RATE 10%
SO I DON'T KNOW HOW MUCH ONE CAN BE ATTRIBUTED
I THINK IT'S BOTH AS SIGNIFICANT, BUT IT'S NOT JUST ALL OPERATIONAL EFFICIENCY
THAT'S CORRECT
I LOVE THIS TERM OF ART AND I JUST FORGOT IT
IT WAS THIS PRODUCT RELEASE OR WAS THIS FREE PRODUCT
I LOVE THIS COMING FROM THE MARITIME OIL SPILL WORLD
SO WE HAD A RELEASE OF SOME PRODUCT DURING THE PILE DRIVING AT T FIVE
I THINK THERE WAS SOME REFLECTION OF A 53% INCREASE IN ENVIRONMENTAL COMPONENT IN OUR MARITIME BUDGET
AND I WAS JUST WONDERING ENVIRONMENTAL AND SUSTAINABILITY ON THE JOINT VENTURE FOR THE SEAPORT ALLIANCE BECAUSE THAT WAS A T FIVE PILE DRIVING
SO I WAS JUST WONDERING, IS THAT COST RECOVERABLE? BECAUSE WE WEREN'T DOING THE PILE DRIVING
I WOULD PROBABLY DEFER TO KELLY OR STEPHANIE IF THEY HAVE ANY MORE INSIGHT INTO THAT, WHETHER THOSE ARE RECOVERABLE
I DON'T BELIEVE IT
YEAH, COMMISSIONER FELLEMAN, I DON'T BELIEVE IT IS JUST BECAUSE IT WAS A HISTORIC COST
IT WAS A PORT IT WAS PORT OWNED OR A PORT LIABILITY
IT WAS DETERMINED
IT WAS LIKE, IN THE SEDIMENTS AND THAT WAS JUST RELEASED BY POUNDING ON IT
I DON'T WANT TO ELABORATE TOO MUCH
I'LL LEAVE IT UP
WE OWN BRICK AND THE TEAM OUT THERE TO GO MORE INTO DEPTH, YOU KNOW, MORE I'M ALWAYS EXCITED ABOUT THOSE THINGS
IT'S A ONE TIME THING THAT HAPPENED THROUGH AN OLD AREA THAT HADN'T BEEN EXAMINED OR HADN'T BEEN REMEDIATED YET
WE'LL GET YOU SOME MORE INFORMATION
THE POINT IS THAT IT WAS EITHER WAS AN ORPHAN SPILL OR WE OWN IT
THAT'S ALL RIGHT
THEN THE QUESTION THE JV DIRECT IN THE SEAPORT ALLIANCE BUDGET IS THAT THE PAYMENTS THAT WE MAKE TO THEM FOR T 46, THE NORTH HARBOR, THE NORTH SLIP, JV DIRECT AGAIN, THAT'S PAGE 22
I'M JUST WONDERING WHERE IS THAT? NO, THE PAYMENTS WE MAKE IS ACTUALLY THE JV DIRECT THAT INCLUDED THE JOINT VENTURE DIRECT THAT INCLUDED THE REMEDIATION IN THERE
THE PAYMENTS WE MAKE IS ACTUALLY A CONTRA JOINT VENTURE
SO THERE'S $4 MILLION THAT COME, 2 MILLION COMES BACK TO US
AND SO RATHER THAN TAKING THAT 2 MILLION THAT COMES BACK AS REVENUE WE USE IT AS AN OFFSET THE CONTRAST
SO IT GOES AS A REDUCTION IN REVENUE ON THAT SIDE
SO WE HAVE $2 MILLION HITS CRUISE AND $2 MILLION
THIS IS A CONTRA
AND BECAUSE WE'RE GETTING HALF OF THAT 4 MILLION BACK SO IT NETS TO ZERO
IT'S PART OF THE 55 MILLION YOU SEE UP THERE INCLUDES THAT 2 MILLION
HALF OF THAT $4 MILLION
BUT WE THEN BOOK THE OTHER 1.9 MILLION YOU SEE THERE IS THE CONTRA REVENUE
I THINK THE IMPORTANT POINT IS THE EXPENSES IN THE CRUISE LINE OF BUSINESS BECAUSE THAT'S WHERE THE PAYMENT IS MADE, THE FULL $4 MILLION PAYMENT
BUT IN THIS INCOME STATEMENT IS WHERE WE GET THE CREDIT BACK FOR THAT HALF OF THE REVENUE FROM THE ALLIANCE
THANK YOU
EXCELLENT
ANY OTHER QUESTIONS? COMMISSIONER MOHAMMED, CLARIFY THOSE
ONE THING I'M SO SORRY TO COMMISSIONER FELLEMAN AND YOUR QUESTION
SO THE OVERALL INCREASE THANK YOU
THE OVERALL INCREASE IN REVENUE AT SHILSHOLE IS DUE TO BOTH THE RATE INCREASES WHICH OUR MORTGAGE CUSTOMERS REALLY FEEL AS WELL AS THE INCREASE, BUT THE MORTGAGE RATE INCREASE IS INCLUDED IN THE BUDGET
SO WHEN WE REPORT OUR FINANCIAL RESULTS WE'RE TALKING ABOUT HOW WE EXCEEDED BUDGET AND THAT INCREASE WAS THE INCREASE IN THE IMPROVEMENT IN PROCESSES THAT ALLOWED US TO GET NEW CUSTOMERS
SO THAT'S WHY WE REPORT IT THAT WAY
BUT I APPRECIATE YOU HIGHLIGHTING THAT PART OF OUR REVENUE KEEPING UP
NO, BUT THAT'S IMPORTANT
IT WAS ALREADY BUDGETED IN
GREAT
THANK YOU, COMMISSIONER MOHAMMED, THANK YOU
FIRST OF ALL, I JUST WANT TO SAY THANK YOU TO DIRECTOR THOMAS AND YOUR FINANCE TEAM FOR YOUR CAREFUL COST MANAGEMENT THAT YOU ALL DO
YOU GUYS KEEP US OUT OF TROUBLE
MY QUESTION WAS I'M GOING BACK TO PAGE NUMBER TWO
SO I UNDERSTAND THE PRIMARY REASON BEHIND THE OPERATING REVENUE COST WAS RELATED TO CAR RENTAL, PUBLIC PARKING, AND WSA
BUT I'M ALSO WONDERING, IS THERE A BREAKDOWN OF PROJECTS THAT GO OVER PUGET THAT IS ACCOUNTED IN THIS AREA? DID I MISS THAT? ARE YOU TALKING ABOUT CAPITAL PROJECTS? YES
THAT WOULD NOT SHOW IN HERE
THIS IS OPERATING PERFORMANCE THAT'S HIGHLIGHTED HERE
GENERALLY, THAT WOULD BE REALLY PART OF A MORE COMPREHENSIVE CAPITAL SPENDING REPORT
AS YOU CAN IMAGINE, THERE'S A MIXTURE OF PROJECTS, SOME UNDER BUDGET, SOME OVER BUDGET, AND WE STILL DO THE QUARTERLY CAPITAL BUDGET SUMMARY REPORT
I BELIEVE THAT THAT INFORMATION SHOULD BE INCLUDED IN THERE
OKAY, SO THANKS FOR THAT CLARIFICATION
I WAS JUST WONDERING IF ANY OF THOSE PROJECT OVERSPEND WERE ACCOUNTED FOR IN THAT $43 MILLION
NO, THAT WOULD NOT BE IN HERE
OKAY, THAT'S HELPFUL
THANK YOU
THAT CONCLUDES MY QUESTION
GREAT
ANY OTHER QUESTIONS THAT I HAVE? A FEW
GO AHEAD
COMMISSIONER HASEGAWA COMMENT THAT I MEAN, GREAT
THIS IS WONDERFUL
AND SEEING HOW WELL CRUISE PERFORMED, IT JUST TELLS ME THAT THERE'S ROOM FOR US TO PUSH A LITTLE HARDER IN OUR LEASE AGREEMENTS WITH THE CRUISE LINES FOR HIGHER STANDARDS
THEY CLEARLY WANT TO BE HERE
THEY WANT TO DO BUSINESS HERE
THEY WANT TO COME THROUGH HERE, AND IT'S OKAY FOR US TO PUSH AND ASK A LITTLE MORE
THANK YOU
GREAT
REAL QUICK, I HAVE ONE QUESTION HERE
FIRST OF ALL DO WE BANK WITH SILICON VALLEY BANK? NO, WE DO NOT
OKAY, GOOD
JUST FOR THE PUBLIC TO BE AWARE
SECONDLY, I WANT TO TURN OUR ATTENTION TO EDD
AND I THINK YEAR AFTER YEAR, EDD ALWAYS KIND OF HANGS IN MY HEAD BECAUSE IT'S ONE OF THE NONPROFITABLE
NOT THAT WE'RE HERE TO MAKE A PROFIT, BUT NET LOSERS, NO OFFENSE TO EDD IN OUR ORGANIZATION
I DID WANTED TO ASK A QUESTION, THOUGH, BECAUSE WE DID OUTPERFORM OUR BUDGET BY, WHAT, THREE AND A HALF MILLION DOLLARS OR SOMETHING LIKE THAT
BUT MORE IMPORTANTLY, WHEN YOU LOOK AT THE EBITDA, THE NET OPERATING INCOME, WHATEVER, OF $6.5 MILLION, AND YOU COMPARE IT WITH, ACTUALLY, THE CAPITAL EXPENDITURE OF EDD OF 2022, WHICH IS IN YOUR APPENDIX, IT WOULD BE SAFE TO SAY THAT IF WE WERE TO GET PAST ALL THESE CAPITAL CIP PROJECTS, THAT EDD WOULD BE CASH FLOW POSITIVE
WELL, FIRST OF ALL, THE FIRST COMMENT I WOULD AMEND MY VIEW OF EDD IS A HYBRID LIAISON BECAUSE IT MIXES SOME BUSINESS OPERATIONS IN TERMS OF REAL ESTATE MANAGEMENT AND THE CONFERENCE CENTER
BUT IT COMBINES THOSE ALSO WITH SOME OF THE MORE NONPROFIT KIND OF ELEMENTS, THE TOURISM GRANTS THAT YOU DISCUSSED TODAY, THE ECONOMIC DEVELOPMENT GRANTS THAT HAVE BEEN PRESENTED TO YOU PREVIOUSLY
SO IT REALLY COMBINES BOTH OF THOSE
SO SEEING A NEGATIVE BOTTOM LINE IS JUST A REFLECTION OF THIS KIND OF THIS HYBRID ENTITY THAT BRINGS IN BOTH BUSINESS AND NONPROFIT ELEMENTS
THE CAPITAL EXPENDITURES THAT THEY WOULD MAKE WOULD SHOW UP IN DEPRECIATION, NOT IN THE OPERATING PERFORMANCE
AND I'M NOT SURE DID WE GO SO FAR AS TO SHOW DEPRECIATION IN OUR CHARTS HERE? YEAH, WE DO HAVE DEPRECIATION IN THERE
AGAIN, SLIDE 76, WE GO INTO A LITTLE FURTHER DEPTH ON THAT
AND THEN WE ALSO BREAK OUT PORTFOLIO MANAGEMENT, WHICH IS THE REVENUE GENERATING PIECE IN SLIDE 77
SO YOU GET A LITTLE MORE OF A PNL THAT LOOKS AT JUST THE BUSINESSES IN ECONOMIC DEVELOPMENT DIVISION AND KIND OF PULLS OUT SOME OF THE ECONOMIC DEVELOPMENT INITIATIVES
SO WE TRY AND BREAK THEM OUT BOTH WAYS AND THEN SOME OF THOSE
AND I KNOW MANAGING DIRECTOR DAVE MCFADDEN IS ON HERE TOO, BUT I THINK, AS KELLY IS POINTING OUT, COMMISSIONER, IS THAT SOME OF THOSE, LIKE, WE LOOK AT OUR FACILITIES THAT WE OPERATE IN THE BUSINESS SIDE, THERE HAVE BEEN INCREASES IN THOSE, INCLUDING BELL HARBOR CONFERENCE CENTER
SO I GUESS THE PORT I'M TRYING TO GET TO HERE IS THAT IF YOU LOOK AT SLICE 78, OUR CIP FOR EDD IS $10.5 MILLION
RIGHT
BUT THOSE ARE REALLY ONE TIME EXPENSES FOR IMPROVEMENTS, NOT OPERATING EXPENSES
RIGHT
SO I GUESS THE POINT I'M TRYING TO GET TO IS THAT IF WE WERE TO ZERO OUT THOSE CIPS, WHICH WILL FINISH THESE PROJECTS RIGHT, AND ASSUMING THERE AREN'T ANY OTHER MAJOR BIG TICKET ITEM IMPROVEMENTS, THEN MY BACK END OF THE NAPKIN MATH ACTUALLY SHOWS THAT AT LEAST ON THE REAL ESTATE SIDE, WE MIGHT ACTUALLY BE CASH FLOW POSITIVE
RIGHT
I GUESS THE SLIDE 25 DOESN'T ACTUALLY SHOW THE FULL PICTURE OF EDD WHEN IT COMES TO ACTUAL NET REVENUE AND INCOME
YEAH, IT'S A LITTLE CHALLENGING BECAUSE IT DOESN'T MIX CAPITAL AND OPERATING ELEMENTS TOGETHER
BUT IF YOU'D LIKE, WE CAN PROVIDE YOU WITH SOME MORE DETAILED INFORMATION AROUND THAT TO HELP INFORM THAT QUESTION
AND THE OTHER PIECE THAT SHOWS UP IN THERE, TOO, IS YOU DO HAVE PIER 69 SHOWS UP IN THE ECONOMIC DEVELOPMENT LIAISON, WHICH OBVIOUSLY DOESN'T GENERATE A TON OF REVENUE, BUT AS AN EXPERIENCED COMPONENT AS WELL
CLEAR
ANY OTHER QUESTIONS? ALL RIGHT, THANK YOU, GUYS
THANK YOU FOR YOUR TIME
YES, THANK YOU VERY MUCH
AND I DON'T KNOW WHERE I PUT MY SKIRT, BUT THAT CONCLUDES OUR AGENDA FOR THE DAY IN NEW BUSINESS IN PRESENTATION AND STAFF REPORTS
THANK YOU
IT'S YOUR FAULT
OKAY
TOP OF 28
ALL RIGHT, SO EXECUTIVE DIRECTOR METRUCK
OH, SORRY
ARE THERE ANY CLOSING COMMENTS AT THIS TIME OR MOTIONS RELATED TO COMMITTEE REFERRALS FROM COMMISSIONER
YES
COMMISSIONER FELLEMAN
TWO QUICK THINGS
ONE IS LOOKING FORWARD RIGHT NOW AFTER YOU LOOK AT THE REVENUES AND STUFF, IN TERMS OF WHAT IS ALL THIS UNCERTAINTY THAT IS IN THE SEAPORT ALLIANCE WE TALKED ABOUT LOOKING AT OUR PORT ZONE MARITIME DIVISION, WE SEE THE AIRPORT IS DOING VERY WELL, THANK YOU VERY MUCH
AND IT'S SELF SUSTAINING
WE HAVE TO LOOK STRATEGICALLY AT WHAT OUR OPTIONS ARE FOR GROWING THE SEAPORT
AND I THINK IT'S A CONVERSATION WE NEED TO HAVE IN A MORE OF A RETREAT TYPE SETTING
BUT MAYBE IF YOU WANT TO SAY SOMETHING ABOUT THAT, THAT'S GREAT
BUT ONE THING I DO WANT TO SAY WHILE WE STILL HAVE THE PUGET FOLKS HERE IS THAT THIS JFOA AWARD THAT WE KEEP ON HAVING TO HEAR ABOUT 17 YEARS IN A ROW, I UNDERSTAND ONE THING ABOUT IT THAT I THOUGHT MAY BE WORTH I GUESS WE LOST KATHY ALREADY
BUT I UNDERSTAND WE HAVE TO GET A NEW PLAQUE BECAUSE WE FILLED UP THE OTHER ONE
SO I WOULD LIKE TO SEE US HAVE A NEW PLAQUE SIGNING CEREMONY
BUT THANK YOU VERY MUCH FOR ALL THAT WORK
COMMISSIONER, IF I CAN JUST COMMENT ON THE MARITIME THAT'S SOMETHING MANAGING DIRECTOR STEPHANIE JONES SEVEN MYSELF TALK ABOUT
SHE HAD A PLAN
I THINK COVID KIND OF DERAILED SOME OF HER BUSINESS DEVELOPMENT PLANS, BUT WE'RE BACK ON THAT NOW AND WE'RE LOOKING AT THAT, INCLUDING ALSO ON THE CAPITAL DELIVERY SIDE TOO, IMPROVING BOTH OF THOSE
ANY OTHER QUESTIONS OR COMMENTS FOR THE GOOD OF THE ORDER FROM COMMISSIONERS? NO
ALL RIGHT
EXECUTIVE DIRECTOR METRUCK, DO YOU HAVE ANY CLOSING COMMENTS FOR US TODAY? NO
THANKS, COMMISSIONER, THANKS FOR YOUR TIME
AND ESPECIALLY I MEAN, TAKING AWAY FROM THE BUDGET PRESENTATION, JUST SHOWING THAT REALLY LAYS THE GROUNDWORK FOR OUR BUDGET DISCUSSIONS COMING UP FOR 2024
SO I APPRECIATE THAT AND LOOK FORWARD TO SOME EVENTS COMING UP THE REST OF THIS WEEK
THANK YOU
GREAT
COMMISSIONER FELLEMAN, I'M SORRY, BUT THIS IS A FORMALITY, BUT SOME OF YOU MAY BE AWARE OF THAT
WE'VE COME ACROSS FOUR FERRY PROPELLERS THAT THE DEPARTMENT OF TRANSPORTATION STATE FERRIES IS SURPLUSING, AND IT'S AT A NET NO COST TO US
IN FACT, IT COULD BE A SLIGHT PROFIT IF WE CHOOSE NOT TO USE THEM BECAUSE OF THEIR SALVAGE VALUE, BUT WHERE IN FACT, WE PUT THEM, WHICH IS WHERE THE EXPENSE WOULD BE IS A WHOLE DECISION MAKING PROCESS
AND WE'D LIKE TO REFER THIS TO THE ART COMMITTEE WHERE WE CAN HAVE SOME JOINT DISCUSSION ABOUT APPROPRIATE SITING
SECOND
ALL RIGHT
ANY OPPOSED? ALL RIGHT
IT HAS BEEN REFERRED
THANK YOU, COMMISSIONER FELLEMAN
ALL RIGHT
HEARING NO FURTHER COMMENTS AND HAVING NO FURTHER BUSINESS, IF THERE IS NO OBJECTION, WE ARE ADJOURNED AT
THANK YOU, EVERYONE
THANK YOU.

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