Digital recordings of the meeting proceedings and meeting materials are available online – www.portseattle.org.

APPROVED MINUTES

COMMISSION SPECIAL MEETING OCTOBER 10, 2023

The Port of Seattle Commission met in a special meeting Tuesday, October 10, 2023. The meeting

was held at the Port of Seattle Headquarters Building, P69, Commission Chambers, located at: 2711

Alaskan Way, Seattle, Washington. Commissioners Calkins, Cho, Felleman, Hasegawa, and

Mohamed were present.

CALL to ORDER

Pursuant to RCW 42.30 and Article IV, Section 8, of the commission bylaws, the meeting convened

at 9:00 a.m. for the purpose of holding a study session on the 2024 Aviation Division operating and

capital budgets.

ITEMS OF DISCUSSION

2024 AVIATION DIVISION OPERATING AND CAPITAL BUDGETS

Presenters:

Lance Lyttle, Managing Director, Aviation Directors Office

Hiedi Popochock, Director, Aviation Finance and Budget

The presentation addressed:

• the Century Agenda’s role in the budget process;

• budget strategies;

• SWOT analysis;

• Aviation Division strategic focus areas;

• 2024 division priorities;

• regulatory mandates;

• budget goals;

• the passenger recovery forecast;

• strong operating revenue recovery;

• preparing for major growth of the capital program;

• budget summary and key indicators;

• summary of total airport expense;

• operating expense budget changes;

• budget requests by strategic focus;

• largest approved budget requests;

P.O. Box 1209

Seattle, Washington 98111

www.portseattle.org

206.787.3000

PORT COMMISSION SPECIAL MEETING MINUTES Page 2 of 3

TUESDAY, OCTOBER 10, 2023

Minutes of November 17, 2020, submitted for review on December 3, 2020, and proposed for approval on December 8, 2020.

Minutes of October 27, 2020, submitted for review on November 5, 2020, and proposed for approval on November 10, 2020.

• approved new full-time employees to achieve key initiatives;

• 2024 operating budget uncertainties;

• Commission 2024 budget priorities;

• aeronautical and non-aeronautical net operating income;

• Aviation Division capital program objectives;

• 2024 – 28 preliminary capital forecast;

• major projects driving the capital program;

• summary of new projects;

• aviation financial forecast objectives;

• 2024 – 28 preliminary financial forecast and metrics;

• equity in spending highlights; and

• 2024 aviation preliminary budget key takeaways.

Discussion ensued regarding:

• measuring customer satisfaction;

• if shifting from expense to capital extends time for payment;

• factors accounting for increase in non-aeronautical revenues;

• planning FTEs to support the budget and operational demands;

• how cost increases are factored into contract negotiations;

• staffing assessments performed periodically and accounting for workforce challenges at the

airport when they arise like in times of need for the Transportation Security Administration;

• the status of investigating polyfluoroalkyl substances (PFAS);

• grant funding for a decarbonization study;

• Commissioner priorities represented the budget – including for childcare study for airport

workers and provision of free hygiene products for employees and passengers at the airport;

• maintaining the schedule to Capital Improvement Plan projects;

• showing Commission priorities at a higher level in the budget;

• forecast assumptions;

• the importance of thinking long-term and regionally;

• the status of pre-conditioned air, assessing performance, and implementing the program;

and

• the status of sustainable aviation fuels inclusion in the budget.

Members of the Commission thanked staff, the finance team, and Executive Director Metruck for the

briefing.

ADJOURNMENT

There being no further business, the meeting adjourned at 10:53 a.m.

PORT COMMISSION SPECIAL MEETING MINUTES Page 3 of 3

TUESDAY, OCTOBER 10, 2023

Minutes of November 17, 2020, submitted for review on December 3, 2020, and proposed for approval on December 8, 2020.

Minutes of October 27, 2020, submitted for review on November 5, 2020, and proposed for approval on November 10, 2020.

Prepared: Attest:

Michelle M. Hart, Commission Clerk

Fred Felleman, Commission Secretary

Minutes approved: October 24, 2023.