COMMISSION AGENDA MEMORANDUM Item No. ACTION ITEM Date of Meeting 3b July 23, 2019 DATE: July 9, 2019 TO: Stephen P. Metruck, Executive Director FROM: David McFadden, Managing Director, Economic Development Division SUBJECT: Maritime Blue/Maritime Understanding Innovation Center Partnership Memorandum of ACTION REQUESTED Request Commission authorization for the Executive Director to execute the Maritime Blue Partnership Memorandum of Understanding substantially in the form attached between Washington Maritime Blue, a Washington 501(c)(6) nonprofit organization, and the Port of Seattle to clarify partnership opportunities and responsibilities in implementing Washington state's Strategy for a Blue Economy. EXECUTIVE SUMMARY Staff is working to formalize roles and responsibilities between the Port and Washington Maritime Blue, the new nonprofit organization charged with implementing Washington sState's Strategy for the Blue Economy. This visionary new plan lays out strategies to ensure Washington Sstate will enjoy a world-class, thriving and sustainable maritime industry by 2050. Because the plan is long term in nature and lacks specific immediate implementation goals, it will be beneficial to formalize how the Port and Washington Maritime Blue will work collaboratively to implement elements of the broader plan. Executing a memorandum of understanding between the Port and Washington Maritime Blue will clarify partnership opportunities and responsibilities and cement a productive relationship between the two organizations going forward. Some areas of mutual interest include  Development of a maritime innovation center  Supporting the maritime industry's workforce needs  Pursuing greenhouse reduction strategies The Memorandum of Understanding lays out general areas of cooperation and directs the partners to develop annual joint programs of work over the next five years. Template revised January 10, 2019. COMMISSION AGENDA - Action Item No. __3b__ Meeting Date: July 23, 2019 Page 2 of 4 JUSTIFICATION In January 2019 Washington State rolled out its new strategy for the Blue Economy. This visionary plan to sustain Washington's maritime industry outlines a number of important initiatives of interest to the Port of Seattle: Maritime Blue Goal - Growing Gateways The plan calls for Port Districts to maintain working waterfronts and help advance efficient, clean and safe maritime practices. Leveraging new technology, advancing innovative and efficient regulatory schemes and promoting triple bottom line outcomes can help sustain Washington's maritime gateways. Maritime Blue Goal - Global Innovation Hub Washington State has the assets to be a world leader in maritime innovation. The region's advanced industries (e.g. Information technology) can help drive "Blue Innovation" within the maritime sector. Whether it's modernizing the seafood industry or advancing new vessel propulsion technologies, there are opportunities to sustain the maritime industry through strategic innovation partnerships. The Port's maritime innovation center is called out in the plan to help spur needed ingenuity by purposely bringing together resources from education, industry and government. Maritime Blue Goal - Thriving, Low Carbon Industry Reducing greenhouse gas emissions within the maritime industry is a top priority. Developing low-carbon shore side infrastructure and related strategies for emissions reduction are keys to sustaining Washington's maritime industries. Maritime Blue Goal - 21st Century Workforce To ensure the Maritime industry develops a diverse talented workforce for the future, the Maritime Blue strategy prioritizes key inclusivity and career connected learning initiatives. Maritime Blue Goal - World-Class Cluster Organization To facilitate implementation of the Maritime Blue strategy a new public/private nonprofit cluster organization (also called Maritime Blue) is advancing regional and statewide efforts:  The organization is organizing networking opportunities and workshops to advance research and development and joint industry projects.  The nonprofit is also serving as a conduit for public and private funding opportunities and working to develop privately capitalized innovation fund.  Maritime Blue is also working with the Port to advance a "virtual maritime Template revised September 22, 2016; format updates October 19, 2016. COMMISSION AGENDA - Action Item No. __3b__ Meeting Date: July 23, 2019 Page 3 of 4 accelerator" initiative to support innovation and entrepreneurship within the sector During the January (2019) Commission briefing on the Maritime Blue strategy several Port of Seattle Commissioners cited the need to clarify how the Port would partner with the cluster organization to implement the longer term strategy. The proposed Memorandum of Understanding (MOU) between the Port of Seattle and the new Maritime Blue nonprofit organization underpins the specific collaboration needed to advance the Maritime Blue plan. As part of the MOU, the Port and Maritime Blue will establish annual work plans. These plans will include goals, metrics, outcomes and funding needed to successfully support maritime accelerator initiatives, workforce training programs and a host of other Maritime Blue initiatives. Staff is also working with Joshua Berger to define goals, outcomes and resources to support the partnership over the next year. We are interested in jointly piloting a virtual maritime accelerator initiative, supporting the maritime innovation center advisory committee, and advancing events and projects aligned with the Maritime Blue strategy. This initial effort will be supported by a specific contract with the Maritime Blue Cluster organization. ADDITIONAL DETAILS Port of Seattle staff is also working with the Washington State Department of Commerce to formalize how the state's five million dollar capital grant for the Maritime Innovation Center (MinC) will be used. Eric Ffitch and David McFadden have a meeting with Commerce Director Lisa Brown on July 29th to learn more about this state funding partnership and plan to provide more details about the capital grant as they become available. ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 - Take no action Cost Implications: None Pros: (1) (2) Cons: (1) (2) Provides the Port more time to discern how plan and nonprofit organization is moving forward Memorandum of Understanding not needed at this point in time Lack of clarity around roles and responsibilities could lead to redundant and/or inefficient efforts Port might be seen as missing in action or insignificant stakeholder surrounding Blue economy plan implementation This is not the recommended alternative. Template revised September 22, 2016; format updates October 19, 2016. COMMISSION AGENDA - Action Item No. __3b__ Meeting Date: July 23, 2019 Page 4 of 4 Alternative 2 - Execute the Memorandum of Understanding Cost Implications: None Pros: (1) (2) Cons: (1) (2) MOU formalizes roles and responsibilities around Maritime development strategies Partnership helps focus and leverage energies around common project Plan lacks specifics so aligning organizations around plan implementation could be difficult Washington Maritime Blue is a new organization so it remains to be seen how they will grow or partner with others to implement the plan This is the recommended alternative. ATTACHMENTS TO THIS REQUEST (1) (2) (3) Presentation slides Draft memorandum of understanding Maritime Blue Strategy PREVIOUS COMMISSION ACTIONS OR BRIEFINGS May 14, 2019 - The Commission authorized design funding for the Maritime Innovation Center (Historic Ship Supply Building) January 8, 2019 - Commission received a briefing regarding Maritime Blue Plan and the Maritime Innovation Center. Template revised September 22, 2016; format updates October 19, 2016.