Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. START OF TRANSCRIPT [01:00:00] the year. We're still working out those [01:00:02] dates, but we will definitely have those [01:00:04] training sessions. They were well [01:00:05] received by the small business and large [01:00:07] business community. And so that's [01:00:10] something that as part of our process, [01:00:11] we will continue every time we before we [01:00:13] release an RFP to give them enough time [01:00:15] to digest the information and then Let [01:00:18] them get through the holidays and then [01:00:19] we'll release. That's our plan. So in [01:00:21] the short term, do we, if we get [01:00:23] requests or interest after this [01:00:24] commission meeting, do we just send them [01:00:26] to you redirect constituents who are [01:00:28] interested? Sure. For the record, [01:00:31] anyone that has questions about the ADR [01:00:33] program, they can email directly to [01:00:36] adrrrfpoortseattle.org and [01:00:41] then we can help those companies get [01:00:42] registered on our notification [01:00:44] application list. But all questions can [01:00:46] go to that, that email address. And I [01:00:48] manage that email address. Very good. [01:00:50] Thank you. Thank you. Anything else for [01:00:53] my colleagues? I just wanted to thank [01:00:57] you for the thought that you put into [01:00:59] promoting equity in this RFP process and [01:01:03] how having avenues to be able to provide [01:01:05] on the front end technical assistance to [01:01:07] prospective applicants and then having [01:01:09] ongoing equity webinars or other support [01:01:12] opportunities is just a really wonderful [01:01:15] best practice. I also would like to [01:01:19] congratulate you on being nationally [01:01:20] recognized for being leaders in this [01:01:22] area. Is that considered as part [01:01:26] of what, you know, your, your peers are. [01:01:31] Is that part of what your peers are [01:01:32] considering when they're analyzing [01:01:34] excellence in an ADR RFP program? [01:01:38] As far as the equity component? Yep. [01:01:41] Yes. So it is a portion of it. The FAA [01:01:44] does require that we provide a ACDBE [01:01:47] plan as well as a small Business [01:01:48] inclusion plan, and that's new. [01:01:51] Recently I have spoken on the national [01:01:53] platform for the FAA and have been [01:01:54] requested to speak on the national [01:01:56] platform for the FAA this year as well. [01:01:58] Because our small business inclusion [01:02:00] program is very strong and so they are [01:02:02] very happy with what we're doing here. [01:02:04] So we are recognized for that from them [01:02:07] as well too. And then I'm seeing in the [01:02:09] documents here that we actually have [01:02:10] over 23% certified minority [01:02:14] tenants and at the airport, is that [01:02:17] correct? Our current [01:02:20] ACDB goal or participation is [01:02:23] at 25%. Our current WMBE Page 1 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:02:27] minority women owned business that [01:02:29] includes ACDB is around 30%. And then [01:02:32] what's our goal? Our goal for the FAA is [01:02:36] 23.5%. And then what's our stated goal [01:02:39] for this program? 23 and a half. The [01:02:42] same. Okay, the same. Thank you very [01:02:44] much. Do I have any follow up? [01:02:46] Commissioner Cho? Yeah, this is on [01:02:50] topic, but a little off topic because [01:02:51] it's ADR related but maybe not specific [01:02:54] to this program. [01:02:57] I've been speaking a lot about tariffs [01:02:58] these days and I think there's [01:03:03] not a lot of information about like how [01:03:04] tariffs are actually going to affect [01:03:05] people. But I suspect that tariffs [01:03:10] will be have to be dealt with by our ADR [01:03:13] tenants as well, and so I'm curious, [01:03:15] have you have any sense of how our [01:03:18] airport and dining retailers are going [01:03:20] to be impacted by these tariffs? [01:03:22] Everyone's always complaining, [01:03:24] complaining to me about how food and [01:03:26] beverage at the airport is already [01:03:27] really expensive. But can we [01:03:31] expect prices to go up even more because [01:03:33] of these tariffs and what our ADR [01:03:35] tenants have to navigate? [01:03:41] You throw out really hard questions. [01:03:45] Sorry, this is not meant to be a gotcha [01:03:46] moment. That's okay. No, that's fine. [01:03:49] So we do anticipate that food costs will [01:03:51] change. And so on an annual basis, our [01:03:54] tenants do have the opportunity to do [01:03:57] price evaluations. That is, our current [01:04:00] pricing structure is street plus 10%. [01:04:03] What we do is we allow our tenants to do [01:04:06] the revision of their street pricing on [01:04:08] at any given time, at that one time, [01:04:10] that one annual adjustment. We have not [01:04:13] revised pricing as far as our tenants [01:04:16] go. They have any given time to do that. [01:04:19] We are waiting for tenants to come back [01:04:20] to us based on what they see in their in [01:04:23] the market as far as their comparison [01:04:24] pricing goes. And so we have sat with [01:04:28] them, we've had a review with our [01:04:29] tenants and given them all that [01:04:31] opportunity to take a step and look at [01:04:33] that. And we do have flexibility in that [01:04:36] time frame. Some people do it the very [01:04:39] beginning of the year, and some people [01:04:40] do it at any given point. So at this [01:04:42] point in time, only a couple people have [01:04:44] made adjustments to their pricing, but [01:04:46] it is at this point in given time, it's [01:04:48] street plus 10. So I think you actually [01:04:51] answered the question that I probably [01:04:53] should have asked, which is do we give [01:04:55] our tenants the flexibility in their [01:04:58] contracts to adjust their prices, given [01:05:00] there is a rev share and a mag involved? [01:05:03] It sounds like what you're telling me is Page 2 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:05:04] there's at least an annual review of [01:05:07] pricing, but they have opportunities to [01:05:10] come back to us. The proposals to revise [01:05:14] pricing based on what they're seeing in [01:05:15] the markets as far as the impacts of [01:05:17] tariffs are concerned at a street plus [01:05:18] ten. Yes. Okay, perfect. Thank you so [01:05:20] much. Do I have any other [01:05:23] questions from my colleagues? Seeing [01:05:25] none. Is there a motion and a second to [01:05:27] approve this item? So moved motion [01:05:30] has been made by Commissioner Cho and [01:05:31] seconded by Commissioner Muhammad. Is [01:05:33] there any further debates? Seeing none. [01:05:36] Clerk Hart, please call the roll for the [01:05:38] vote. Commissioners, say iron A when [01:05:39] your name's called. Thank you. [01:05:41] Beginning with Commissioner Calkins. [01:05:43] Aye. Thank you. Commissioner Chapp. [01:05:45] Aye. Thank you, Commissioner Felleman. [01:05:47] Aye. Thank you, Commissioner Mohammed. [01:05:49] Aye. Thank you. And Commissioner [01:05:51] Hasegawa. Aye. Thank you. Five ayes, [01:05:54] zero nays for this item. Wonderful. The [01:05:56] motion passes. Thank you very much to [01:05:57] staff, your hard work and your [01:05:58] presentation. Congratulations. [01:06:04] Thank you. To our guests. [01:06:07] All righty. So clerk Hart, please read [01:06:10] the next item into the record and [01:06:12] executive Director Metruck will introduce [01:06:13] it. Thank you. This is agenda item 10c. [01:06:16] Authorization for the executive director [01:06:18] to execute a sole source purchase [01:06:20] contract with Watts Marine LLC for [01:06:23] procurement of long lead shore power [01:06:25] electrical equipment for Terminal 91 and [01:06:27] Pier 66 cruise shore power extension and [01:06:30] the requested amount of $8,000,000 for a [01:06:33] total authorized amount of $9,350,000, [01:06:36] an estimated project cost of [01:06:38] $28,300,000. Commissioners, [01:06:41] today's item before you represents a [01:06:44] critical milestone in advancing the [01:06:45] port's dual missions of economic [01:06:47] vitality and environmental stewardship [01:06:50] as we continue to lead the region in [01:06:51] sustainable maritime infrastructure. [01:06:54] This action supports our commitment to [01:06:55] accelerate shore power connections [01:06:57] across all cruise berths, which aligns [01:07:00] with Commission Order 202408 in [01:07:03] our broader climate goals. And the [01:07:05] presenters this afternoon. I see Kelly [01:07:07] Purnell, capital project Manager here [01:07:09] and Linda Sprigman, Director of Cruise [01:07:12] operations. I don't know if she's here [01:07:13] with us virtually. Yeah. Great. [01:07:17] Online, Kate. Yep. Oh, great. So I'll [01:07:19] turn it over to Linda Springman. [01:07:24] Thank you. Thanks, Executive Director [01:07:26] Metruck. Thank you, commissioners. If you [01:07:28] go to the next slide, please. Page 3 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:07:31] As was shared, we're here to ask for [01:07:33] commission authorization for the [01:07:34] executive director to execute a sole [01:07:36] source purchase contract with WAS Marine [01:07:38] for procurement of long lead shore power [01:07:41] electrical equipment for Terminal 91 and [01:07:44] Pier 60 cruise shore power project in [01:07:47] the amount of $8 million towards a total [01:07:50] estimated project of $28.3 million. [01:07:53] Next slide. [01:07:57] This project is in relation to the July [01:08:00] 2024 Commission Order Number2024 08, [01:08:03] which has passed mandating that all home [01:08:05] port cruise ships connect to shore power [01:08:07] by 2027. To meet that mandate, the [01:08:10] existing shore power system need to be [01:08:12] extended at both locations in multiple [01:08:15] locations at each. This project will [01:08:18] provide maximum flexibility in how ships [01:08:20] with different shore power [01:08:21] configurations bertha to pier so that [01:08:24] they can connect. And just to amplify [01:08:26] this a little bit more, shore power [01:08:28] configurations on cruise ships are not [01:08:30] standardized. They could be port or [01:08:32] starboard. They can be midship or aft. [01:08:35] And so this will give us the ultimate [01:08:36] flexibility when we're working with [01:08:39] gangways, shore power connection [01:08:41] provisioning and luggage doors. And I [01:08:44] will. Now, if you go to the next slide, [01:08:46] I'm going to turn it over to Kelly [01:08:47] Purnell, who's leading this project [01:08:49] workforce project management. Kelly. [01:08:52] Thanks, Linda. Good afternoon, [01:08:53] Commissioners And Executive Director [01:08:55] Metruck. My name is Kelly Purnell. I'm a [01:08:57] Capital Project Manager in Waterfront [01:08:59] Project Management. As Linda mentioned, [01:09:02] the purpose of this project is add much [01:09:05] needed and required to our existing [01:09:07] shore power systems at our three cruise [01:09:09] berths in order to meet. In order to [01:09:11] plug in all home port cruise ships by [01:09:12] 2027, our existing shore power systems [01:09:15] are limited in which ships can be [01:09:17] connected. As Linda described. At 66, [01:09:20] our newest shore power system which [01:09:21] became operational last year, we have [01:09:24] two shore power connection points that [01:09:26] are used in conjunction with a mobile [01:09:29] cable positioning device that provides [01:09:30] an additional 40ft on either side of the [01:09:32] device to extend the cables to the [01:09:34] ships. Terminal 91 at Pier 91 has [01:09:38] one shore power connection point at each [01:09:40] of the west and east berths that will be [01:09:43] operated in conjunction with the two [01:09:45] mobile cable positioning devices we [01:09:46] purchased last year. This is the [01:09:49] original system that was installed in [01:09:51] 2009, but was actually moved from [01:09:54] Terminal 30 in 2005. The current Page 4 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:09:58] configurations of the shore power [01:09:59] systems cannot currently accommodate all [01:10:02] of the ship shore power configurations [01:10:04] that Linda also described like midship, [01:10:06] aft or even port side connections [01:10:08] depending on which ship is in the berth. [01:10:11] Simply put, the cables cannot reach all [01:10:14] of the shore plug ins on all of the [01:10:16] different types of ships. But these are [01:10:19] very important cruise berths. As we [01:10:20] know, the three cruise berths add huge [01:10:23] economic benefit to the Puget Sound [01:10:25] region and and contribute to 5,500 jobs [01:10:27] and generate nearly $900 million in [01:10:30] revenue for the area each cruise season. [01:10:32] I'm sorry, I needed to go to next slide. [01:10:42] Next slide. Yes, please. [01:10:46] A very clear century agenda goal for the [01:10:48] port is to become the greenest port in [01:10:50] North America. A key strategy to reach [01:10:53] that goal is shore power. To fully [01:10:55] implement the strategy, our shore power [01:10:57] systems need to be extended to maximize [01:10:59] the number of ships we can plug in. Our [01:11:02] original goal was to plug in all home [01:11:04] port cruise ships by 2030. We are [01:11:06] advancing that by three years to plug in [01:11:08] all ships by 2027. Next slide. [01:11:16] So how are we going to achieve this? [01:11:18] The project is very schedule driven. It [01:11:21] is paramount that we advance the project [01:11:23] quickly to meet the 2027 mandate to plug [01:11:26] in all home ported cruise ships. The [01:11:28] first component of our project delivery [01:11:30] strategy is the sole source purchasing [01:11:32] contract with Watts Marine to design and [01:11:34] procure all of the major shore power [01:11:36] equipment. That is what we are here [01:11:38] today for. To get funding authorization [01:11:40] for that Watts contract in the amount of [01:11:42] $8 million. Watts is a key partner in [01:11:45] our shore power endeavors. They designed [01:11:47] and installed the existing System at [01:11:48] Pier 91 and at Pier 66. [01:11:52] Watts also operates and maintains both [01:11:54] systems. These systems, these system [01:11:58] designs are proprietary technology of [01:12:00] Watts. It is necessary that the shore [01:12:02] power extensions at each location fully [01:12:05] and seamlessly integrate with the [01:12:06] existing systems, necessitating the need [01:12:09] to use Watts as our shore power [01:12:11] equipment supplier. In parallel to the [01:12:14] Watts contract, we are also doing a [01:12:17] progressive design build alternative [01:12:19] project delivery to accelerate our [01:12:21] design and construction to the extent [01:12:23] feasible. Next slide please. [01:12:29] Just a quick overview of where our shore [01:12:30] power systems are located at 66 and Pier [01:12:33] 91. The orange is the area that we need [01:12:36] to extend somewhere in that area. The [01:12:39] yellow is our existing system location. Page 5 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:12:42] Next slide please. [01:12:47] We have two integrated scopes of work [01:12:48] for this project. The first is the Watts [01:12:51] Marine component that will design and [01:12:53] procure all major shore power equipment, [01:12:56] coordinate with the port and design [01:12:58] builder to ensure system compatibility [01:13:00] and fully commission the equipment. The [01:13:03] second is our progressive design build [01:13:05] contract which the progressive design [01:13:07] builder will complete a detailed [01:13:09] birthing study of our known current and [01:13:12] future ships to determine the optimal [01:13:14] locations for our additional connection [01:13:16] points along the burst. To maximize the [01:13:18] number of ships we can plug in. They [01:13:20] will design, permit and construct the [01:13:21] electrical pathway between the [01:13:23] connection point locations and the [01:13:25] existing electrical substations. They [01:13:28] will also work with Watts and the port [01:13:31] to ensure compatibility with our [01:13:32] existing systems, including the [01:13:34] utilization of the mobile cable [01:13:35] positioning devices at each of the three [01:13:37] cruise berths. And they will install the [01:13:40] shore power equipment that Watts Marine [01:13:42] specifies and assist in the [01:13:45] commissioning of that equipment. [01:13:47] Furthermore, they will install new [01:13:49] mooring bollards which will add berthing [01:13:51] flexibility for ships needing to [01:13:52] connect. And lastly, there is a [01:13:55] potential that the design builder will [01:13:57] need to replace some of the deck panels [01:13:59] in coordination with the dock [01:14:01] rehabilitation project separate project [01:14:04] that is planned on the west berth of [01:14:05] Pier 91. Next slide please. [01:14:12] Some general considerations for this [01:14:13] project. The project is located at two [01:14:16] complex sites. Pier 66 has constrained [01:14:19] entrances, shares access with Bell [01:14:21] Harbor Marina and has busy hotels, [01:14:23] restaurants and a conference center. [01:14:25] Pier 91 also has constrained access and [01:14:27] is a multi industry port or pier. [01:14:29] Excuse me. April to October the pier is [01:14:33] fully utilized by cruise operations and [01:14:35] October through February the pier is [01:14:37] fully utilized by commercial fishing [01:14:39] operations. At both locations. We also [01:14:41] have neighborhoods that we respect and [01:14:43] must minimize construction impacts, [01:14:45] which includes the noise. There are many [01:14:48] other construction projects at Pier 91 [01:14:50] and Terminal 91 as a whole, such as the [01:14:53] T91 uplands project which will be under [01:14:55] construction at roughly the same time [01:14:56] period as the shore power project. In [01:15:00] particular, the aforementioned dock [01:15:01] rehabilitation project is a Key [01:15:04] consideration that we must logistically Page 6 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:15:06] factor into our project planning because [01:15:08] of significant overlap with necessary [01:15:09] deck panel replacements on the west [01:15:11] berth. Next slide, please. [01:15:16] Our project timeline is predicated on [01:15:18] aggressive permitting assumptions which [01:15:20] avoid in water work. It should be noted [01:15:23] that during the scoping and validation [01:15:24] phases of the project that in water work [01:15:26] is necessary, certain regulatory [01:15:28] requirements will be will have to be met [01:15:31] and our schedule will need to be [01:15:32] adjusted accordingly. Progressive Design [01:15:34] Builder will be responsible for all [01:15:36] necessary permits for this project with [01:15:38] port oversight. Next slide, [01:15:41] please. [01:15:44] A broad overview of our project [01:15:45] schedule. Aggressive planning on this [01:15:49] project to meet the commission order, [01:15:51] but we anticipate that our contract with [01:15:52] Watts will be executed in Q2 or 2025 and [01:15:56] our contract executed with the [01:15:58] Progressive Design builder by Q3 of [01:16:00] 2025. Construction is anticipated in [01:16:04] late Q3 or early Q4 of 2026 within [01:16:07] use in 2027. Next slide, please. [01:16:14] Currently, we're estimating the overall [01:16:15] project budget at 28.3 million, [01:16:19] minus 25%, 40% based on where we are in [01:16:23] our cone of certainty, which I have a [01:16:24] slide about a little bit later. Our ask [01:16:27] today is for the 8 million of that [01:16:29] estimated cost. Next slide, please. [01:16:35] We're utilizing opportunities with our [01:16:37] contracting models to accelerate the [01:16:38] project schedule. And that's the sole [01:16:40] source contract. Progressive Design [01:16:41] build. Next slide, please. [01:16:47] Here's our risk table. I won't belabor [01:16:49] this too much, but the broad overview is [01:16:51] that it's a very complex project, a [01:16:53] complex set of project locations that [01:16:55] the project team is actively working to [01:16:56] mitigate at this time. Next slide, [01:17:00] please. This is our typical cone of [01:17:03] certainty, where we are today between [01:17:05] the planning and about 30% design, [01:17:08] which dictates our project cost range at [01:17:12] this time. This will get narrower as we [01:17:14] begin to partner with our Progressive [01:17:16] Design Builder and with Watts Marine. [01:17:19] Next slide, please. Next steps. [01:17:22] As I noted, executing our contract with [01:17:25] the Progressive Design Builder in Q3. [01:17:29] Then we will be back later this fall for [01:17:32] the authorization for the early design [01:17:34] work and then back next spring for the [01:17:38] full funding authorization after we've [01:17:39] negotiated our guaranteed maximum price [01:17:42] with the Progressive Design Builder. [01:17:45] Next step or. I'm sorry. Next slide, [01:17:47] please. And that's it. Thank you for Page 7 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:17:51] your time. Thank you so much for the [01:17:53] presentation. So at this point. At this [01:17:55] point, I'll turn to my colleagues for [01:17:56] any questions that they may have, [01:17:57] beginning with Commissioner Felleman. [01:18:00] Thank you. I really appreciate the fact [01:18:02] that you're cracking the whip and [01:18:04] wanting to get this done by 2027. It's a [01:18:09] tall order and I appreciate you rising [01:18:11] to the occasion. I also fully support [01:18:13] the idea of sole sourcing to Watts. [01:18:15] They seem to be uniquely qualified for [01:18:17] the job and they also have a name that's [01:18:19] uniquely qualified. When I first heard [01:18:21] it, I thought it was referring to [01:18:23] electricity. And it's sort of similar to [01:18:26] Stein Cruise, a uniquely qualified [01:18:28] individual because of their name. [01:18:32] But beyond that, I was really wondering [01:18:35] why there's like this additional $9 [01:18:37] million associated with the fancy [01:18:40] extension cord at 66. Why wasn't [01:18:44] it built into the original project when [01:18:46] we just for 66. Yeah. Some provisions [01:18:49] were made in 66. It was future proof. [01:18:51] So we do have a location for the new. [01:18:54] Some of the new gear that needs to go [01:18:56] in. So it's much less scope at 66 than [01:18:58] it is at Terminal 91. Because they did [01:19:00] future proof to a certain extent. I [01:19:03] don't think they were anticipating as [01:19:04] quickly as we need to to put that in. [01:19:07] So it wasn't done at that time. But it [01:19:10] will help to accelerate the 66 piece a [01:19:12] bit because we did add in provisions [01:19:14] during that project. Great. And I think [01:19:18] director Joan Stebbins will be probably [01:19:21] wanting to address this next question on [01:19:23] top of that one. So I was just wondering [01:19:26] how this might affect our negotiations [01:19:30] with NCL and cost sharing and where [01:19:33] we're at with that process. [01:19:40] Let me just add on to Kelly's answer [01:19:44] for that last question too. Remember [01:19:45] that design for Pier 66 was. [01:19:48] It was began long before we took [01:19:53] the opportunity to accelerate shore [01:19:55] power. So when we were looking, we're [01:19:57] really now anticipating not just the [01:19:59] vessels that we have at our terminals, [01:20:01] but new vessels that are calling. So [01:20:03] we're. And again, the cost is [01:20:05] significantly less at 66 to make this [01:20:08] improvement. But we are looking at [01:20:14] both NCL cost [01:20:17] sharing at 66 as well as really how [01:20:21] we finance this. When we come back for [01:20:25] approval of the full amount, we will [01:20:29] have more details on that. But what I [01:20:31] can tell you is we've evaluated both. [01:20:34] If we do not do this project and [01:20:38] we just tell the cruise ships that can't [01:20:40] plug in, you can't come. Right. That is Page 8 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:20:43] about $26 million in lost revenue. So in [01:20:46] one year we would make up the cost for [01:20:50] this. But additionally, in terms of [01:20:52] looking at facility charges for cruise [01:20:56] lines, what that would take to [01:21:01] finance this project over the life of [01:21:03] the equipment. So we're evaluating both [01:21:05] of those approaches and we'll be sharing [01:21:08] more when we come back for. For the [01:21:11] final approval of the project for [01:21:13] construction approval. Thank you. I know [01:21:17] you're still negotiating long term [01:21:18] leases and all this stuff is in. In [01:21:21] play. But I'm glad to hear that this is [01:21:24] part of that discussion. Yeah. And I do. [01:21:26] Your expectation has been made very [01:21:28] clear, Commissioner, so thank you. All [01:21:29] right. It keeps on growing. That's all. [01:21:32] Thank. [01:21:36] Any others with some questions? Seeing [01:21:38] none. Is there a motion and a second for [01:21:39] this item? So move. Second motion has [01:21:42] been made by Commissioner Felleman and [01:21:44] seconded by Commissioner Muhammad. Any [01:21:45] additional discussion or debate? Seeing [01:21:48] none. Clerk Hart, please call the roll [01:21:50] for this vote and commissioners will say [01:21:52] aye or nay. Thank you. Beginning with [01:21:54] Commissioner Calkins. Aye. Thank you. [01:21:56] Commissioner Cho. Aye. Thank you. [01:21:58] Commissioner Felleman. Aye. Thank you, [01:22:01] Commissioner Muhammad. Thank you. [01:22:03] Commissioner Hasegawa. Aye. Thank you. [01:22:05] Five ayes, zero nays for this item. [01:22:07] Wonderful. It passes unanimously. Thank [01:22:09] you so much to staff for your hard work [01:22:10] and for the presentation moving [01:22:14] us along. Clerk Hart, please read the [01:22:15] next item into the record and Executive [01:22:17] Director Metruck will introduce it. [01:22:19] Thank you. This is agenda item 10D. [01:22:21] Authorization for the executive director [01:22:23] to take all steps necessary, including [01:22:26] the execution of all contracts, [01:22:27] including public works, alternative [01:22:29] public works procedures, in accordance [01:22:31] with RCW 29.10, goods and services, [01:22:34] personal services, professional [01:22:37] services, other consultant services, [01:22:38] and any other type of contracts or [01:22:40] agreements to complete the baggage [01:22:42] optimization program. Phase three and [01:22:44] the requested amount of $477,373,982. [01:22:52] And an estimated total estimated project [01:22:56] cost of $1,074,638,982. [01:23:02] Commissioners, today's item brings [01:23:04] forward the final phase of one of the [01:23:06] most critical infrastructure programs at [01:23:08] the airport, modernizing the baggage [01:23:11] handling system throughout the airport. [01:23:13] As you know, baggage handling is one of [01:23:14] the most complex and operationally [01:23:16] essential systems in the airport Page 9 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:23:18] environment. Prior phases of this [01:23:20] program already transformed two thirds [01:23:21] of the system. Phase three represents [01:23:23] the final step to deliver a fully [01:23:26] integrated, efficient and future ready [01:23:28] baggage system. So now I'll turn it over [01:23:30] to the team to walk us through this, [01:23:31] the details of this critical step and I [01:23:34] don't know, all I have is Ed. I don't [01:23:35] know if there's anybody else on your. [01:23:36] On your team, Ed, but Ed White's capital [01:23:39] program leader for the Aviation Project [01:23:41] Management Group. Yeah, I'll be here to [01:23:43] ask any questions. I think I saw Wendy [01:23:45] running around somewhere, but I think I [01:23:46] can handle most of the questions from [01:23:48] here, so. Good afternoon, commissioners [01:23:49] and second Director Metruck. I'm capital [01:23:52] program leader for baggage at the [01:23:55] airport. So next slide, please. [01:24:01] So we're here today to present our long [01:24:04] term, over a decade long term project [01:24:07] that We've been working on where we're [01:24:09] placing the six individual screening [01:24:11] systems to improve our centralized [01:24:15] screening provides flexibility, [01:24:17] reliability, improved security [01:24:20] efficiency for airline and passengers [01:24:24] for their baggage. Today we're [01:24:27] specifically going to discuss phase [01:24:28] three, which is the last of the program. [01:24:33] Next slide. [01:24:37] So phase one and phase two were designed [01:24:39] to build contracts. Phase one is shown [01:24:42] on the left side of the screen what [01:24:45] we're going to focus on. And that was [01:24:46] focused in the central area within the [01:24:49] central terminal. And that was completed [01:24:52] in 2020. Phase 2 on the right [01:24:56] shows in the different colors that was [01:24:59] completed in 2024. One of the things I'd [01:25:03] like to highlight is just recently. [01:25:05] Phase 2 recently won the Associated [01:25:07] General Contractors National Baldwin [01:25:10] Group, build America over $100 million. [01:25:14] I would like to congratulate our team [01:25:16] and all the excellent work and our [01:25:17] contractors as we completed phase two [01:25:20] last year. Next slide. [01:25:26] So phase three is what we're here to [01:25:28] talk about today. Phase three is the [01:25:30] last of the phases and is a general [01:25:32] contractor construction manager [01:25:33] contracting method. It is concentrated [01:25:36] on the south half of the airport. It's [01:25:38] going to make connections to the [01:25:40] international arrivals facility and [01:25:45] remove the screening and add that to the [01:25:47] central terminal and connections to [01:25:49] their makeups. This phase will complete [01:25:53] the optimized system so that we can have [01:25:55] any bag go anywhere within our facility. [01:26:00] Next slide. Page 10 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:26:03] So phase three started in 2023. [01:26:08] Through this contract method. We're in [01:26:10] design and negotiations through last [01:26:12] quarter. With the approval here today, [01:26:15] we would be allowed to proceed with [01:26:17] construction. Expect to finish in 2029. [01:26:23] Next slide. This slide shows the overall [01:26:26] program budget. Phase one was completed [01:26:29] under budget by around 3.7 million. [01:26:31] Phase two was also completed under [01:26:33] budget by approximately 19 million. [01:26:36] Phase three, however, is over budget by [01:26:39] approximately 153 million. To complete [01:26:41] the entire scope of work, we had [01:26:45] scope and budgeting transferred from [01:26:47] Concourse C. Evolution to build out the [01:26:50] transfer lines for approximately 15.5 [01:26:53] million. That's trending on [01:26:56] budget and that's out on the street. [01:26:58] Currently we also have an executive [01:27:01] director reserve of 10 million that we [01:27:04] no longer require. The total program [01:27:07] budget increase we're here for today is [01:27:09] Approximately is approximately 119 [01:27:11] million to complete the program. [01:27:15] Budget increases are attributed to the [01:27:17] lack of competition for specialized [01:27:18] baggage handling, installation and [01:27:22] electrical work. So since 2022, there's [01:27:24] been a continued escalation in [01:27:27] electrical, labor and equipment. The [01:27:29] project budget was also impacted by the [01:27:32] specialized baggage handling, [01:27:33] contractor and electrical fees. [01:27:36] Construction duration also increased by [01:27:38] a year due to mitigating operational [01:27:41] risks. To keep the baggage system [01:27:43] operational for airlines during [01:27:45] construction and minimize that downtime. [01:27:51] Next slide. We're requesting [01:27:55] full program authorization of 477 [01:27:58] million for a total program of 1.1 [01:28:02] billion 74 million. Today we'll [01:28:05] complete the last phase of this program. [01:28:08] We've been partnering with the airlines [01:28:09] and receive their support. Along with [01:28:12] your support today we can finish this [01:28:14] long term program. And I'm glad to [01:28:16] answer any questions that you have for [01:28:17] me. Thank you so much for the [01:28:19] presentation. At this time I'll turn to [01:28:21] my colleagues to see what questions they [01:28:22] may have. Commissioner Felleman, [01:28:28] I can't believe I can actually expect [01:28:30] that we're going to not hear about [01:28:31] baggage optimization. I think this has [01:28:34] been one of the conversations throughout [01:28:35] my tenure and it's truly amazing. It's [01:28:38] sort of also like one of those things [01:28:40] that are like building a foundation on [01:28:43] your house. You don't know about it [01:28:45] until it fails. And so it's one of those [01:28:48] kind of you don't get to see it, but Page 11 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:28:51] everybody knows its value when you don't [01:28:53] get your bag on time. So thank you for [01:28:55] this sort of submarine work that you're [01:28:57] doing. It goes unnoticed and it's [01:29:00] obviously essential, if not [01:29:02] extraordinarily expensive. But I [01:29:04] appreciate the idea that we won't have [01:29:06] to hear about it again and the not too [01:29:08] distant future. So thank you again. [01:29:11] Thank you. [01:29:16] Anybody else? Commissioner Calkins, [01:29:22] thank you so much for the presentation. [01:29:24] I remember taking a Bagwell tour when I [01:29:26] first started here seven plus years ago [01:29:29] and then taking another tour when we [01:29:32] encountered the issues related to the [01:29:34] link up with the new IAF [01:29:37] facility. This feels to me like one of [01:29:40] those 50 year investments where sure, [01:29:43] we could take the less [01:29:47] expensive alternative, but we would [01:29:48] really regret it over the life of the [01:29:50] system and we really get this one shot [01:29:53] to do it right. And I know that all [01:29:56] budgets are experiencing significant [01:30:00] cost increases associated with stuff out [01:30:03] of our control, but I just don't think [01:30:05] this is one to skimp on. And [01:30:08] particularly as we continue to work to [01:30:11] improve not only the passenger [01:30:12] experience but the efficiency of the [01:30:14] airport, this feels like something we [01:30:17] should really invest in. Thank you, [01:30:20] Commissioner Calkins. So I'm wondering [01:30:22] what happens if we don't integrate the [01:30:24] IAF into the optimized system. So one [01:30:28] of the things, if we don't integrate it, [01:30:29] it makes it an operational impact for [01:30:31] our airline partners. Can you describe [01:30:33] that operational impact? So what I mean [01:30:35] by that is bags are screened in the [01:30:37] facility at if and they're delivered and [01:30:41] they're not connected to the rest of the [01:30:43] system throughout the airport. So they [01:30:45] actually staff folks at that location. [01:30:48] And so the. When you do a recheck so you [01:30:51] come in from an international flight, [01:30:52] you're going to go to, let's say you're [01:30:54] going to land here and fly to Dallas, [01:30:57] your bag then needs to be re screened [01:30:59] off of an international flight. And then [01:31:02] we have to deliver those, those get [01:31:04] delivered to a makeup in the IF [01:31:07] facility. Airline then needs to go down, [01:31:09] get that bag and say you're going to [01:31:11] leave from North Satellite. They're [01:31:13] going to have to take that, get that bag [01:31:15] with extra staff and drive it out to [01:31:17] north satellite and put it on the [01:31:19] airplane from there or. And so it adds [01:31:21] another layer of complexity within our [01:31:23] bagwell. If it's not integrated. So it's [01:31:27] a couple extra layers. It requires Page 12 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:31:30] manually moving a bag from one system to [01:31:32] the other and it also requires it to be [01:31:35] re screened. Correct. So it's re [01:31:37] screened and then manually moved twice [01:31:40] where we're going to make the connection [01:31:43] so that when you come into the [01:31:44] international rabbits facility, your bag [01:31:46] will be put on the ticket counter there [01:31:48] and it will go through our centralized [01:31:49] screening system and we'll be able to [01:31:51] deliver it anywhere in the field [01:31:52] facility. Great, thank you. Separately, [01:31:55] why is phase three so dramatically over [01:31:57] budget when phase one and two were under [01:32:00] budget? I think it's just, it's the [01:32:03] complexity. One of the things is, it's [01:32:06] the extra time. It's costing us a lot of [01:32:08] money. As we've gotten busier over the [01:32:11] last decade, it gets harder and harder [01:32:13] to actually do the projects. We have [01:32:15] about a 2 hour 45 minute window to, to [01:32:18] make connections within the system. So [01:32:20] some of the expense is definitely [01:32:22] related to takes us a lot longer to do [01:32:24] the work that we hadn't planned on years [01:32:27] and years ago. So it's very complex [01:32:30] to be able to get it shut down, [01:32:33] connected, turned back on so we don't [01:32:35] impact the passenger bags. Thank you. [01:32:39] And then my final question switching [01:32:40] gears is what was the WIMBEE utilization [01:32:44] rate for phase one and two? I see here [01:32:47] that the utilization goal is 4% [01:32:51] for this project. And why is that? It [01:32:53] seems low to me. Why is it so low? So [01:32:55] for phase two we had a 3% and I think we [01:32:59] were just over that at [01:33:02] I think it was 2%. Sorry. For phase two [01:33:05] we actually aye. 2.97% for the [01:33:09] total. It's specialized baggage handling [01:33:11] equipment and there's very few firms [01:33:13] that are small enough that we can get [01:33:17] a lot of small business out of that. So [01:33:19] 80 to 90% of the work is specialized [01:33:22] equipment that we're buying from. [01:33:24] There's probably only three firms in the [01:33:26] world that could do a project this size [01:33:28] that we know of or that correct. [01:33:30] Commissioner Cho? Yeah. Actually, I [01:33:32] wanted to follow up on Commissioner [01:33:34] President Hasegawa's question around [01:33:36] phase one and phase two. Isn't it also [01:33:38] true that a lot of phase one and phase [01:33:41] two, maybe not phase one, but phase two [01:33:42] was done during the height of the [01:33:44] pandemic, which actually that actually [01:33:46] provided us with some cost savings [01:33:47] inefficiencies given the downturn in [01:33:49] travel. Yes. And we actually had taken [01:33:52] some time, resequenced some work, and [01:33:56] then tried to do that in an [01:33:59] off shift. And we actually saved some [01:34:01] time ultimately and got it done a couple Page 13 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:34:03] months ahead of schedule. Yeah. So by [01:34:06] being able to resequence the work, we [01:34:09] did get some savings out of doing that. [01:34:11] Yeah. One of the several linings of that [01:34:13] incident. Thank you. Thank you. Hearing [01:34:15] no further questions, is there a motion [01:34:17] and a second for item 10, D's approval? [01:34:20] So moved. Second. The motion's been made [01:34:22] by Commissioner Cho and seconded by [01:34:24] Commissioner Muhammad. Is there any [01:34:25] further discussion or debate on this [01:34:27] item? Seeing none. Clerk Hart, please [01:34:30] call the roll for this. And [01:34:31] commissioners will say aye or nay when [01:34:32] the name's called. Thank you. Beginning [01:34:33] with Commissioner Calkins. Aye. Thank [01:34:36] you. Commissioner Cho. Aye. Thank you. [01:34:38] Commissioner Felleman. Aye. Thank you. [01:34:41] Commissioner Muhammad. Aye. Thank you. [01:34:43] And Commissioner Hasegawa. Aye. Thank [01:34:45] you. Five ayes, zero nays for this item. [01:34:47] The motion carries unanimously. Thank [01:34:49] you very much for the presentation. [01:34:50] Shout out to the team for your hard [01:34:51] work. Thank you. [01:34:58] I'm moving forward. Okay, so we are now [01:35:00] at presentations and staff reports. [01:35:01] Clerk Hart, please read the next item [01:35:02] into the record. Executive Director [01:35:04] Metruck will then introduce the item. [01:35:06] Thank you. This is agenda item 11a. The [01:35:08] fly quiet Awards. [01:35:12] Commissioners, we are pleased to [01:35:14] recognize this year's winners of the [01:35:16] Ports Fly Quiet Awards. This program [01:35:18] celebrates air airlines for their [01:35:20] efforts to reduce noise at SEA. The [01:35:23] annual Fly Quiet Awards were developed [01:35:25] by port staff and the citizen advisory [01:35:27] committee in 2005 to increase airline [01:35:29] and pilot awareness of of aircraft noise [01:35:31] impacts on local communities. Aviation [01:35:33] is quieter today than ever before in our [01:35:36] history and programs like this help us [01:35:38] make further gains. Presenters this [01:35:40] afternoon are Paris Edwards, Noise [01:35:42] Airport Noise Programs Coordinator and [01:35:44] Thomas Fagerstrom, Noise Program [01:35:46] Manager. So, Paris, I'll turn it over to [01:35:50] you. Thank you, Executive Director [01:35:52] Metruck. And good afternoon, Commission. [01:35:55] Paris Edwards, Senior Environmental [01:35:57] Management Specialist. Just quickly go [01:35:59] over the Flight Flight Awards next [01:36:01] slide, please. So Fly [01:36:05] Fly was created in 2002 as a component [01:36:08] of the Part 150 study with really the [01:36:11] goal is to bring awareness to the [01:36:13] airlines as to noise impact in our [01:36:15] communities. Flight Quiet then uses an [01:36:18] in depth scoring system to evaluate [01:36:20] flight procedures noise levels of [01:36:22] operating aircraft. And we award two Page 14 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:36:25] airlines with the best record of [01:36:26] achievement. From there we then award a [01:36:29] third airline that has shown significant [01:36:32] improvement lessening their noise impact [01:36:34] over the course of the year. Next slide [01:36:36] please. [01:36:40] So this will cover the components of [01:36:44] how we score for Fly Quiet. So two [01:36:47] airlines are awarded for best overall [01:36:48] scores in the following categories. [01:36:51] Low noise levels of takeoff and [01:36:53] landings. And this is in reference to [01:36:55] our noise monitors. We currently have 24 [01:36:57] noise monitors but for fly quiet we use [01:37:00] four close in monitors north and south [01:37:03] of the runways. High level of compliance [01:37:06] with noise abatement of flight [01:37:08] procedures. This would be in reference [01:37:10] to as an example our noise abatement [01:37:12] procedures for south flow and that is [01:37:16] think of as invisible line so to speak [01:37:19] that we want to. We ask airlines to stay [01:37:21] within those boundaries. Third, [01:37:24] compliance with SEA ground maintenance [01:37:26] engine run up rules. And lastly our low [01:37:30] low levels of noise exceedances during [01:37:32] late night hours. And this is from the [01:37:34] late night noise limitation program that [01:37:37] was implemented in 2020. Shortly [01:37:39] thereafter this was then brought into [01:37:41] Flight Quiet awards program. [01:37:45] So this focuses on the hours of 12am to [01:37:48] 5am and also this is where we use those [01:37:52] four noise monitors I previously [01:37:54] mentioned. And exceedances for late [01:37:56] night noise limitation program are [01:37:58] reported quarterly and also discussed in [01:38:00] our START working group. Next slide [01:38:03] please. And our winners [01:38:08] start with Air Canada. And again all the [01:38:10] winners here have perfect scores. There [01:38:12] are no exceedances so just want to get [01:38:15] that out of the way. And Air Canada [01:38:17] again has achieved high scores in all [01:38:19] four categories. They operate the modern [01:38:22] Airbus 220 and Boeing 737737 Max 8 [01:38:25] aircraft. And this is their third [01:38:27] consecutive award. What stands out for [01:38:29] Air Canada is they're continuing to with [01:38:32] their fleet mix operate more Airbus [01:38:35] aircraft as well as the 737. But you'll [01:38:38] see more Airbus operated here at SEA. [01:38:42] Next slide please. [01:38:45] And Frontier Airlines again very high [01:38:48] scores, perfect scores. As a matter of [01:38:50] fact Airbus, I'm sorry, [01:38:52] Frontier is a all Airbus fleet and [01:38:56] they are working through modernization. [01:38:57] As a matter of fact, one of the quietest [01:38:59] aircrafts today is the Airbus A320neo. [01:39:04] And so this is Frontier sixth flag quiet [01:39:08] award. Next slide please. [01:39:12] And our most improved goes to Air Page 15 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:39:14] France. Remarkably low takeoff [01:39:17] arrival and noise through the use of the [01:39:20] Airbus 350, 900 aircraft. This is a [01:39:23] newer aircraft with very low noise [01:39:27] impact, as well as the 787, [01:39:30] 900. This alone, along with, [01:39:33] again, perfectly flying procedures note [01:39:36] exceedances really lifted their scores [01:39:39] from the previous year. Previous year's [01:39:41] Fly quiet and next slide, please. [01:39:46] So our next steps, we will release a [01:39:49] press release. Flag quiet banners will [01:39:52] be displayed in the main terminals. Our [01:39:54] website will be updated with flag quiet [01:39:57] scores, and we will have a magazine [01:40:00] advertisement shortly. Next slide, [01:40:03] please. Any questions? [01:40:09] Thank you very much for the [01:40:10] presentation. Commissioners, do you have [01:40:13] any questions? Commissioner Felleman. [01:40:19] I love awards. I think we should always [01:40:21] recognize the highliners in the business [01:40:24] and. And make everybody else jump up to [01:40:26] try to catch up. And it's very [01:40:28] interesting to me that we have now these [01:40:29] consistent winners. Right. So. [01:40:32] And I kind of think, you know, maybe [01:40:35] that deserves even a more special [01:40:37] recognition. Right. Three times. Three [01:40:39] times in a row is, you know, because [01:40:42] it's not just the plane, it's the flight [01:40:44] pattern. So there's obviously more than [01:40:47] just a good purchase. Absolutely. So I [01:40:50] think that's worthy of further [01:40:53] recognition. And I see you're buying ads [01:40:56] in a magazine. What magazine would that [01:40:57] be? [01:41:01] Welcome. Please introduce yourself. For [01:41:03] the record, Tom Fayerstrom, Airport [01:41:06] Noise Programs Manager. Air Transport [01:41:09] World is a trade publication that is [01:41:13] widely circulated in the airline [01:41:15] business, and that's the one that we [01:41:17] purchase advertising in. And is that new [01:41:20] to this year? No, we've done that for [01:41:23] the past four or five years. And so [01:41:27] is this work, these accomplishments, [01:41:30] shared with, like, the Highland Forum [01:41:32] and the START Committee and folks like [01:41:35] that? So the folks that really are [01:41:36] paying attention to it from the public's [01:41:38] perspective know these things. Yeah. We [01:41:41] do all we can to promote the airlines [01:41:43] and why they've won, making sure that [01:41:46] we're highlighting the biggest reason [01:41:48] why is the aircraft they're flying and [01:41:50] how they're flying them. And so we [01:41:52] definitely want to put out the message [01:41:55] that we're promoting these types of [01:41:57] aircraft, bring these aircraft into our [01:41:59] airport, these new and the latest and [01:42:03] most modern aircraft. Okay. And so. [01:42:07] But then there's the other side of the Page 16 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:42:09] scale. And I know that you're saying [01:42:12] that you're actually publishing the [01:42:14] entire list in this aeronautical [01:42:16] publication. That's a long list. Well, [01:42:19] this would go onto the website. So what [01:42:21] I do is I have the award winners, and [01:42:25] it's from the best to the not so good. [01:42:29] Can you hold that up again? Just because [01:42:31] the camera's on you now? That's quite a [01:42:34] fleet. Yeah. So this goes onto our [01:42:37] Website. And this is. And this is public [01:42:39] consumption as well to see who's our [01:42:41] winners and then who is a lower [01:42:43] performers. Now, is it true that most [01:42:47] of the lower performers are air cargo? [01:42:51] Yeah, that's mostly the case. And. [01:42:56] And because they're like still flying [01:42:57] 747s and things like that. Yeah, the [01:43:00] fleet mix can vary. As a matter of fact, [01:43:03] Tom and I believe Lance met with two of [01:43:06] those airlines to inquire if they could, [01:43:09] you know, alter their fleet mix for SEA. [01:43:12] But I'll let Tom talk about that. Yeah, [01:43:15] that's part of our late night, late [01:43:16] night noise limitation program. China [01:43:18] Airlines Cargo, which is an airline that [01:43:20] we've talked about a lot over the years [01:43:22] flying cargo to Taipei, we had a [01:43:26] meeting with them to talk about and they [01:43:28] are beginning to rotate those 747s out [01:43:32] of their fleet. And so we're just [01:43:33] encouraging them to continue that and [01:43:35] bring in those, those newer aircraft. [01:43:38] In this case, they're 777s into our [01:43:40] airport instead of those. And we also [01:43:43] had a meeting with EVA Airways, which [01:43:46] also flies to Taipei. It's a passenger [01:43:47] flight. But we also talked to them about [01:43:52] continuing to encourage them to bring in [01:43:53] the 787 here, which is their quietest [01:43:56] aircraft. And so These are like 3am [01:43:59] flights though, right? Yeah, [01:44:03] one 1 to 3am around that time frame. [01:44:06] And so when you say you're speaking with [01:44:08] them, I mean this has been from day one. [01:44:11] I mean, our neighbors know this plane. [01:44:14] They can, you know, see it in their [01:44:17] sleep. So when you say you spoke with [01:44:20] them, I mean, there's truths that are [01:44:23] taken to China, not that infrequently. [01:44:25] Have we met with executives. [01:44:29] Not on the executive level. It's been [01:44:32] mostly local staff. Although I will say [01:44:33] with EVA Airways, we have had meetings [01:44:36] in the past that have included their [01:44:37] operations folks in Taipei when they [01:44:40] were interested in the noise levels of [01:44:42] their triple seven takeoffs. And they [01:44:45] were quite loud then. So we have had [01:44:47] some higher level discussions. It's [01:44:50] mostly local staff and our ask is if [01:44:54] they have quieter aircraft in their [01:44:55] fleet to continue to bring those in, Page 17 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:44:58] bring them in more, or if there's an [01:45:00] opportunity for a schedule change. In [01:45:02] EVA Airways case, they also bring in [01:45:04] cargo aircraft and they, as a result of [01:45:08] our meeting, really decided [01:45:13] to have their cargo flights as much as [01:45:16] they could depart before midnight, [01:45:19] which is still late. But it's better [01:45:21] than 1 or 2am So I would [01:45:25] imagine scheduling is probably even more [01:45:27] challenging than rotating the fleet. I [01:45:30] would ask President Hasegawa if we might [01:45:33] not write a letter to the executives or [01:45:35] maybe co sign with our executive to [01:45:40] reinforce the good work that our staff [01:45:42] have been doing for many years and just [01:45:44] underscore how important this is. This [01:45:46] is, you know, nighttime disturbance has [01:45:48] been shown to have all sorts of [01:45:51] magnitude of impacts as the DNL [01:45:54] documents. So I [01:45:58] just see this is such low hanging fruit. [01:45:59] There's like two planes. Let's take it [01:46:02] out. All right, so and I [01:46:05] think isn't DHL or FedEx also a bit [01:46:09] of a. FedEx goes to Boeing Field but [01:46:12] isn't DHL another one? FedEx. [01:46:15] FedEx is an air carrier at our airport. [01:46:18] Yeah. And they have a. About a 4am [01:46:21] arrival with an older aircraft that the [01:46:24] community definitely notices and talks [01:46:26] about. I've had many discussions with [01:46:29] the community about that FedEx 4am [01:46:32] arrival. And what are they? Texas or [01:46:34] Tennessee? That particular one comes in [01:46:36] from Oakland. No, I'm saying the [01:46:37] headquarters. Oh, Memphis. Sorry, [01:46:39] Memphis. Yeah. So I would like to make [01:46:42] sure they understand the level of [01:46:43] importance we put on these things. [01:46:45] Thank you so much. Your work. Does [01:46:47] anybody else have any questions or [01:46:48] comments? Just for myself, I'd like to [01:46:51] thank you for your work and I'd like to [01:46:54] acknowledge Air Canada, Frontier [01:46:56] Airlines and Air France for their [01:46:58] progress on helping to address [01:47:02] the issues of noise impacts on airport [01:47:05] adjacent communities. And so we [01:47:09] really do care deeply about the impact [01:47:12] that as an airport we are having on our [01:47:14] community members. And so this is great [01:47:17] not only to be able to acknowledge that [01:47:19] great work but it is also an opportunity [01:47:21] for us to look at our low scorers. And I [01:47:25] am hearing the recommendation that I [01:47:27] think we all support in lending our [01:47:29] voice as a commission encouraging folks [01:47:31] to to make the rotations of their fleets [01:47:33] as necessary in order to be able to [01:47:36] reduce that noise impact on our airport [01:47:38] adjacent communities. Because again that [01:47:40] is hand in hand with our mission to Page 18 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:47:43] improve the quality of life of our [01:47:45] communities. So I'd like to thank you [01:47:48] for your presentation and thank you for [01:47:50] entertaining the excellent line of [01:47:51] questioning and I will excuse you and we [01:47:54] can move forward to our next item. [01:47:57] Thank you Commissioners Clerk Hart, [01:47:59] please read the next item into the [01:48:01] record and Executive Director Metruck [01:48:02] will introduce it. Thank you. This is [01:48:04] agenda item 11b. Seattle Waterfront [01:48:06] Clean Energy Strategy Briefing [01:48:09] Commissioners. The Seattle Waterfront [01:48:10] Clean Energy Strategy is a joint effort [01:48:12] between the Port, the Northwest Seaport [01:48:14] alliance and Seattle City Light to plan [01:48:17] the infrastructure needed to support [01:48:19] fully electrification across port [01:48:21] properties in the maritime side. This [01:48:23] strategy provides clear technical and [01:48:25] policy recommendations to guide our [01:48:26] transition to zero emission Maritime [01:48:29] operations by 2050. Advancing goals set [01:48:31] in the Maritime Climate and Air Action [01:48:34] Plan, the MCAP and the Northwest Ports [01:48:37] Clean Air Strategy, and our Century [01:48:39] Agenda. And the presenters this [01:48:41] afternoon are Senator Kilroy, [01:48:45] Senior Director of Environment and [01:48:47] Sustainability, Sarah Ojay, Director of [01:48:49] Maritime Environment Sustainability, [01:48:51] and David Fujimoto, Senior Environmental [01:48:54] Program Manager. So I'll turn it over to [01:48:57] Sandy to kick us off. [01:49:02] Good afternoon, Commissioners and [01:49:03] Executive Director Metruck. Thank you and [01:49:05] happy Earth Day. I'm very excited to be [01:49:09] providing some opening remarks for this [01:49:12] briefing. We initiated this work in 2019 [01:49:16] and at that time our vision statement [01:49:19] read, and I'm going to read it to you. [01:49:21] Modernize the electrical power [01:49:23] distribution grid to provide clean [01:49:26] energy to Seattle's working waterfront [01:49:28] to increase regional competitiveness, [01:49:30] create jobs, improve community health [01:49:33] and address climate change. The Port of [01:49:36] Seattle and the Northwest Seaport [01:49:38] alliance collectively manage a regional [01:49:40] and global transportation supply chain [01:49:42] hub that will increasingly rely on clean [01:49:46] electricity in the future. And this [01:49:48] waterfront clean Energy strategy is a [01:49:51] critical step that is needed to move us [01:49:54] forward on that electrification as well [01:49:57] as decarbonize the maritime industry. [01:50:00] I'm a big believer that successful [01:50:03] endeavors start with comprehensive [01:50:05] planning and a strong foundation. And [01:50:08] this strategy is that it is like a [01:50:11] strategic blueprint that will drive the [01:50:14] change that we need for this transition [01:50:17] toward a clean energy future. And of Page 19 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:50:20] course, we don't work alone. I really [01:50:22] want to express deep gratitude to the [01:50:25] Seattle City Light for welcoming us when [01:50:28] we brought this to them originally and [01:50:32] for joining us as a critical partner to [01:50:35] strategically and holistically prepare [01:50:38] for the future. The team has worked very [01:50:42] hard on this both within the [01:50:45] Environmental Department and across many [01:50:47] departments at the port and at Seattle [01:50:49] City Light. And they look forward to [01:50:51] sharing this information with you today [01:50:53] as well as working with you to turn this [01:50:56] blueprint into reality. So thank you for [01:50:59] your attention today. Sarah. [01:51:03] Good afternoon. I'm Sarah O.J. i'm the [01:51:06] director for Maritime Environment [01:51:08] Sustainability. A pleasure to be here [01:51:09] today, Commissioners and Executive [01:51:11] Director Metruck. And thank you, Sandy [01:51:14] Kilroy. As you mentioned, this is a [01:51:17] blueprint and you know, it's a. We're [01:51:19] very excited about the completion of [01:51:20] this and it is also the beginning of [01:51:22] something new. And I wanted to just [01:51:24] comment momentarily on the importance [01:51:27] of the next phase of this work too. [01:51:29] You'll be hearing about some significant [01:51:31] improvements, improvements that will be [01:51:33] needed to bring our waterfront to the [01:51:35] next phase of being and to meet our [01:51:39] climate goals and to meet and I'm going [01:51:41] to, I'm going to take your bottom line, [01:51:44] surprise them with this. We expect a [01:51:46] fourfold increase in electrical demand, [01:51:48] and that's a very significant increase [01:51:50] and it's going to require significant [01:51:53] investment on our part. And so my [01:51:55] department is strongly committed to [01:51:57] working with the Maritime Division, [01:52:00] Facilities and Operations to evaluate [01:52:03] the implementation that could come out [01:52:05] of this report and look at [01:52:07] opportunities. And we're even beginning [01:52:09] to do this now as we begin the process [01:52:12] of developing a capital plan for 2026. [01:52:15] I just wanted to note that we're [01:52:17] beginning to use this today. This work, [01:52:20] it is useful right now. And I also like [01:52:23] Sandy, wanted to just take a moment to [01:52:25] thank our partners and that we have [01:52:28] representatives from Seattle City Light [01:52:30] Online as well as the Northwest Seaport [01:52:33] Alliance, a key partner in this project. [01:52:36] So thank you everyone for being here and [01:52:38] I want to hand it over to David [01:52:39] Fujimoto, our Project Manager. Great. [01:52:42] Thank you very much, Sarah. I really [01:52:44] appreciate the introduction and good [01:52:47] afternoon, Commissioners and Executive [01:52:48] Director, metrc. I'm pleased to be [01:52:51] joining you here this afternoon to [01:52:52] provide a briefing on the Seattle Page 20 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:52:54] Waterfront clean energy. At the risk of [01:52:56] piling on, I do want to emphasize that [01:52:59] this has been a collaborative effort [01:53:00] between the Port of Seattle, the [01:53:01] Northwest Seaport alliance and Seattle [01:53:04] City Light, as well as our various [01:53:06] partners internal to the port who've [01:53:09] been contributors and providing input [01:53:11] and insights that are valuable to the [01:53:14] overall strategy. In this briefing, [01:53:16] I'll provide an overview of the broader [01:53:18] context and drivers for the strategy, [01:53:21] talk a bit about the goals for the [01:53:23] strategy, the approach undertaken for [01:53:25] its development, key findings from the [01:53:27] analysis, recommendations for [01:53:29] implementation, including both capital [01:53:31] and strategic implementation actions. [01:53:34] I'll describe our anticipated [01:53:36] implementation framework. Framework, [01:53:37] excuse me. And talk briefly about next [01:53:40] steps. Next slide, please. [01:53:45] At a very high level, you all are aware [01:53:47] that the Port has a vision for zero [01:53:49] emissions by 2050. This is derived from [01:53:52] the Port Sentry Agenda, which is our [01:53:54] North Star Strategy. Because we're a [01:53:57] multifaceted port, this is reflected in [01:54:00] our vision for a zero emissions port by [01:54:02] 2050, including sustainable commerce and [01:54:05] travel, a hub for zero emissions [01:54:07] transport and travel, resiliency in [01:54:10] operations and infrastructure, and then [01:54:13] finally contributing to the positive [01:54:15] health and economic outcomes for [01:54:16] communities surrounding the port. Next [01:54:19] slide, please. [01:54:22] The Seattle Waterfront Clean Energy [01:54:23] Strategy is designed to help advance the [01:54:26] vision of a zero emissions port and meet [01:54:28] those four interrelated goals. @ its [01:54:31] core, the goal of the Seattle Waterfront [01:54:33] Clean Energy Strategy is to provide what [01:54:35] I like to describe as the enabling clean [01:54:37] energy infrastructure to support the [01:54:40] electrification of buildings, vehicles, [01:54:42] vessels and equipment operating our port [01:54:45] facility Port owned properties. This [01:54:48] strategy includes facilities managed by [01:54:50] the Port's Maritime and Economic [01:54:52] Development Division as well as the [01:54:53] Northwest Seaport Alliance. [01:54:55] Importantly, collaboration with CLC Lite [01:54:58] provides a unique opportunity to align [01:55:01] the ports and the utilities goals around [01:55:04] electrification, optimization of energy [01:55:07] and power resources, industry [01:55:10] collaboration and improving the health [01:55:12] of neighboring communities. Next slide [01:55:14] please. [01:55:18] As a part of the development of the [01:55:19] Seattle Waterfront Clean Energy [01:55:20] Strategy, the Port Northwest Seaport Page 21 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:55:22] alliance and Seattle City Light entered [01:55:24] into a multi year partnering agreement [01:55:26] to provide the foundation for the [01:55:28] strategy. This 10 year partnering [01:55:30] agreement addresses aspects of shared [01:55:32] goals including greenhouse gas [01:55:34] emissions, green jobs, economic [01:55:36] development and health equity. It [01:55:39] provides a forum for joint planning. It [01:55:41] leverages importantly, it leverages CLC [01:55:44] Light's clean power resources, it opens [01:55:47] the doors for the pursuit of innovative [01:55:49] solutions and strategic technologies and [01:55:52] it provides a commitment for ongoing [01:55:54] implementation. Next slide please. [01:55:59] The parties came together early in the [01:56:01] process to build upon the partnering [01:56:03] agreement and to develop a shared vision [01:56:05] for the Seattle Waterfront Clean Energy [01:56:07] Strategy. As noted on the slide, this is [01:56:10] articulated as a lasting partnership [01:56:12] deploying clean energy infrastructure [01:56:14] and driving equitable economic [01:56:16] development for a zero emissions working [01:56:19] waterfront by 2050. The Seattle [01:56:22] waterfront Clean Energy Strategy also [01:56:23] aligns important utility plans and these [01:56:26] include foundational policy frameworks [01:56:28] such as the Northwest Ports Clean Air [01:56:30] Strategy and Seattle City Light [01:56:32] Strategic Plan. It also addresses [01:56:35] implementation level plans which provide [01:56:37] more focused attention on [01:56:38] electrification. These include Seattle [01:56:41] City Lights Transportation [01:56:42] Electrification Strategic Implementation [01:56:45] Plan or T sip. It's a mouthful, as well [01:56:47] as the Port's Maritime Climate and Air [01:56:49] Action Plan and the Northwest Seaport [01:56:51] Alliance's five Year Implementation [01:56:53] Plan. The Waterfront Energy Strategy is [01:56:55] identified in both of the Port's plans [01:56:58] implementation plans as a cross cutting [01:57:00] action which is foundational to the [01:57:02] electrification of the end uses that are [01:57:04] operating on our various terminals. [01:57:07] Next slide please. [01:57:11] Throughout this presentation I will [01:57:12] touch upon aspects of the power [01:57:14] distribution system. So I wanted to [01:57:17] provide this view. It's a highly [01:57:20] simplified view, but at a very high [01:57:22] level. Power is generated from sources [01:57:24] such as hydropower, which as you know is [01:57:25] very common in the Pacific Northwest, [01:57:27] is transmitted by high voltage [01:57:29] transmission lines to regional utility [01:57:31] substations and then power is sent via [01:57:34] underground or overhead feeders to [01:57:37] transformers and customer meters at port [01:57:40] facilities. Power moves from one or more [01:57:43] service entrances, is distributed across [01:57:46] terminals through a distribution cable, Page 22 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [01:57:48] switchgear and sub meters to serve a [01:57:51] variety of uses such as buildings, [01:57:53] lighting, electrification of vehicles, [01:57:57] cargo handling equipment, shore power [01:57:59] and other uses. The portions of the [01:58:01] system in light blue are those that are [01:58:03] owned and operated by the utility and [01:58:05] the portions that are in dark blue are [01:58:07] are owned and operated by the port and [01:58:09] then finally the end uses and When I [01:58:12] talk about end uses, I mean the vessels [01:58:14] that are connecting to shore power, the [01:58:15] cargo handling equipment, the vehicles, [01:58:17] et cetera. Those may be owned by the [01:58:20] port or they may be owned by and [01:58:22] operated by our tenants who operate on [01:58:25] our various facilities. Next slide [01:58:28] please. This diagram [01:58:32] outlines the main elements of the [01:58:33] Seattle waterfront clean energy [01:58:34] strategy. Moving left to right, the [01:58:37] analysis began with a high level [01:58:39] assessment of clean energy and port the [01:58:41] port equipment landscape. We developed a [01:58:44] shared vision and goals as I previously [01:58:46] mentioned. Then the work moved through [01:58:48] an analysis of the various port sites. [01:58:51] We undertook an approach which could be [01:58:53] described as from the ground up, [01:58:55] focusing on the actual uses and energy [01:58:58] use on terminals in order to develop [01:59:01] a baseline understanding of current [01:59:04] operations on port facilities. This [01:59:06] baseline inventory assessed energy uses [01:59:09] across 24 different locations and [01:59:12] considered aspects such as total energy [01:59:14] use or seasonal and peak energy demand [01:59:17] consumption of natural gas as well as [01:59:19] consumption of things like gasoline, [01:59:22] diesel and fuel oil. [01:59:25] Equipment inventories and vessel call [01:59:27] data was used to develop energy use [01:59:29] profiles and ultimately establish an [01:59:31] energy baseline. A few findings from [01:59:34] that baseline. 74% of on terminal energy [01:59:38] use came in the form of fossil based [01:59:41] liquid fuels. About another 4% came from [01:59:44] natural gas, and just the remaining [01:59:46] balance of about 22% came from [01:59:50] electric energy use. [01:59:53] We would expect those percentages to [01:59:55] change significantly as we start to [01:59:58] electrify the ports so that 78% of non [02:00:01] electrical use would be eventually [02:00:03] shifting to more electrified uses [02:00:06] through the implementation of this plan. [02:00:08] And then importantly from an emissions [02:00:11] perspective, those 78% liquid fuels plus [02:00:14] natural gas represent about 97% of [02:00:17] greenhouse gas emissions on our port [02:00:19] terminals. What this does is this [02:00:21] reflects the fact that that 22% of [02:00:23] electrified uses is very clean because Page 23 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:00:25] of CLC lights power, clean power [02:00:28] sources. Are you on the right slide? [02:00:31] I am. I'm just talking a little bit [02:00:33] about the details from the baseline, [02:00:35] but thank you for calling that out. [02:00:39] The baseline was then used to develop a [02:00:42] demand forecast and the demand forecast [02:00:46] was analyzed in order to understand the [02:00:49] constraints both on the utility side as [02:00:51] well as the port side. Solutions for [02:00:55] those constraints were identified and [02:00:58] analyzed and we also considered as part [02:01:01] of that process what are called non wire [02:01:03] solutions or kind of alternative [02:01:05] technologies such as battery storage [02:01:07] systems or distributed generation that [02:01:09] could help to meet those constraints. [02:01:12] And then finally the results were [02:01:14] assembled and included into an overall [02:01:16] strategy which we'll talk a little bit [02:01:18] more about. Next slide please. [02:01:23] Through the process of evaluating the [02:01:25] sites, the project team prioritized [02:01:26] locations to narrow the focus to a [02:01:29] subset of sites based on considerations [02:01:31] such as anticipated load growth or [02:01:35] overall growth, overall contribution to [02:01:38] greenhouse gas emissions and known any [02:01:41] known infrastructure issues or [02:01:43] constraints. From the 24 sites that were [02:01:46] included in the baseline analysis, 11 [02:01:48] sites were prioritized for more detailed [02:01:50] evaluation. These included things such [02:01:53] as four spot load sites which were sites [02:01:56] where the underlying energy demand was [02:01:59] expected to be relatively consistent but [02:02:02] there could be some electrified uses [02:02:04] which would increase demand, things like [02:02:06] ferries or locomotives or [02:02:10] or tugboats for example. In addition, [02:02:13] we took a look at three truck charging [02:02:16] locations to see what the impact would [02:02:18] be of placing truck charging for heavy [02:02:22] duty trucks at various locations on the [02:02:24] grid. And then finally the utility [02:02:26] identified port adjacent locations which [02:02:29] were either connected to feeders serving [02:02:31] the port or were in areas which had high [02:02:34] demand. Next slide please. [02:02:40] As we look to the results of this [02:02:42] analysis, this slide shows the [02:02:44] forecasted electrical load growth which [02:02:46] is expressed as peak power demand. [02:02:50] As Sarah mentioned, the power demand is [02:02:52] expected to increase dramatically with a [02:02:55] more than 4 fold increase from 2019 [02:02:57] which was the base year, to 24 increases [02:03:00] even further if you go further out to [02:03:02] 2050. This forecast considers variables [02:03:06] such as planned redevelopment. There are [02:03:08] also a number of state policies which [02:03:10] are driving things like electrification [02:03:13] of or alternative fueled heavy duty Page 24 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:03:15] vehicles as well as passenger vehicles, [02:03:19] buildings, etc. Also, we took into [02:03:22] consideration any planned operational [02:03:24] growth through the lines of various [02:03:26] lines of business. You'll note that the [02:03:29] graph breaks down the major categories [02:03:31] of load contribute uses by major end [02:03:33] uses. Power in the near term, shore [02:03:36] power continues to be the most [02:03:37] significant driver of power demand, but [02:03:40] over time you'll see that charging of [02:03:42] vehicles, vessels and cargo handling [02:03:45] equipment is expected to become more [02:03:47] significant as we progress. Next slide [02:03:51] please. [02:03:55] Some additional key findings from the [02:03:56] analysis. As noted, the electricity [02:03:59] purification loads are expected to [02:04:01] increase dramatically. We just spoke [02:04:03] about Shore Power Port just recently [02:04:06] finished shore power installation at [02:04:08] Pier 66 and Terminal 18 is nearing [02:04:11] final design. Terminal 30 as well as 46 [02:04:14] were also identified as potential future [02:04:16] locations for shore power. The port [02:04:19] adjacent locations that were identified [02:04:21] by the utility are also significant [02:04:23] contributors to load growth. These are [02:04:26] in particular Coleman Dock and the US [02:04:28] Coast Guard facility or have been [02:04:30] identified as potential load centers. [02:04:33] But ultimately both the port's own [02:04:35] infrastructure as well as the utility [02:04:37] owned infrastructure is expected to see [02:04:40] significant constraints or impacts from [02:04:43] increased electrification. Of the 16 [02:04:45] feeders that are serving port locations, [02:04:49] 10 are expected to exceed design or [02:04:51] thermal conductor limits, eight of which [02:04:54] are the direct result of forecasted [02:04:56] loads from the port. Through the [02:04:58] analysis of solutions I mentioned before [02:05:01] the innovative the look at innovative [02:05:03] non wire solutions. However, we found [02:05:07] that through the analysis that [02:05:09] traditional kind of poles and wire [02:05:10] solutions or kind of traditional utility [02:05:13] infrastructure is currently most cost [02:05:15] effective. We do recommend that over [02:05:17] time we continue to evaluate the state [02:05:19] state of technology and cost for things [02:05:21] like battery storage. As those costs [02:05:23] come down or as we start to identify [02:05:26] other use cases such as resiliency, [02:05:29] there may be a case for some of those [02:05:32] alternatives in the future. And then [02:05:35] finally, the study identified gaps in [02:05:38] information with long term planning, [02:05:40] asset conditions and resiliency [02:05:42] requirements which would contribute to a [02:05:45] more holistic look at energy [02:05:47] infrastructure across port facilities. [02:05:50] Next slide please. Page 25 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:05:55] And then next slide. [02:06:03] Oops, I think we skipped ahead one. [02:06:07] Thank you. So, just shifting to some of [02:06:09] the recommendations. The recommendations [02:06:13] fall into three core areas. One, Power [02:06:16] infrastructure improvements both on both [02:06:18] utility based and on terminal. There are [02:06:21] eight strategic implementation actions [02:06:23] and also recommendations for joint [02:06:25] implementation framework. Next slide [02:06:27] please. For infrastructure improvements, [02:06:31] the study identified up to 475 [02:06:35] million in port and utility system [02:06:37] improvements through 2050. These include [02:06:40] up to 288 million in on terminal [02:06:42] infrastructure and up to 16068 million [02:06:45] in utility distribution system [02:06:48] investments. It's important to note, [02:06:51] however, that these are preliminary [02:06:53] rough order of magnitude estimates. [02:06:55] They're classified by our Waterfront [02:06:58] Estimating team as Class 10 estimates [02:07:01] that have a high degree of uncertainty [02:07:03] and wide range of accuracy. [02:07:06] In particular, because of the long, [02:07:08] long planning horizon involved with some [02:07:10] of these projects, these costs do not [02:07:12] include the cost of vehicles or vessels [02:07:14] or cargo handling equipment, those end [02:07:16] uses, or the charging equipment. This is [02:07:19] purely focused on the infrastructure [02:07:20] side of it. And it should be noted that [02:07:23] additional investigations of the site, [02:07:26] the infrastructure conditions and [02:07:28] detailed design will be needed to refine [02:07:30] some of these estimates on a going [02:07:32] forward basis. And we do fully [02:07:35] expect that as part of this process, [02:07:37] projects would be continued to be [02:07:38] assessed and then be evaluated in the [02:07:41] context of other port priorities that [02:07:43] would be included in port's capital [02:07:45] plans for Port Seaport alliance and [02:07:48] Seattle City Light. And then finally, [02:07:50] it will be important to consider the [02:07:52] timing of these investments. One of the [02:07:54] goals with this project is really to [02:07:55] make sure that we have the energy [02:07:57] infrastructure in place both on the port [02:07:59] side and the utility side when those [02:08:01] electrification demands show up. You [02:08:03] know, one of the worst things I think [02:08:05] would happen is that we have a terminal [02:08:07] operator, for example, who's ready to go [02:08:08] with the project, but we don't have the [02:08:10] infrastructure to support that effort. [02:08:13] Next slide please. [02:08:17] The strategy also outlines eight [02:08:19] strategic implementation actions. The [02:08:22] purpose of these implementation actions [02:08:24] are to mitigate risk, to reduce barriers [02:08:27] to electrification technologies and to [02:08:30] Provide a more holistic view of power Page 26 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:08:32] infrastructure investment. I'll try to [02:08:35] run through these pretty quickly, but [02:08:37] several but kind of starting at the top [02:08:40] one goal is to really think about making [02:08:43] improvements with planned capacity in [02:08:45] mind. So this kind of electrification [02:08:47] ready approach moves from like, for like [02:08:50] equipment replacement replacement to [02:08:53] focus on more higher capacity or modular [02:08:56] designs. Basically preparing for the [02:08:58] future and avoiding kind of additional [02:09:00] infrastructure investment at later [02:09:02] points in time. The ports engineering [02:09:04] team has already started to take this [02:09:06] approach with some of their work to date [02:09:09] on asset conditions. We would [02:09:13] we recommend a broader look at overall [02:09:15] asset conditions through the work that [02:09:19] that we did here. The primary focus has [02:09:22] really been on capacity for [02:09:24] electrification and we're starting to [02:09:26] get more information about asset [02:09:28] conditions. There are some several [02:09:30] studies that are underway that are [02:09:31] bringing in data, but that will also [02:09:33] help to inform what other investments [02:09:35] are needed to the port's overall power [02:09:38] infrastructure systems. That's mostly on [02:09:40] the port side the on terminal [02:09:42] investments. Similarly, with regard [02:09:45] to resiliency, the port as the port goes [02:09:49] forward, outlining some efforts to [02:09:51] identify resiliency requirements both by [02:09:53] the port as well as our tenants to [02:09:56] remain operational will be important. [02:09:59] This will also enable to look at some [02:10:01] additional strategies as we think about [02:10:04] how to separate power distribution among [02:10:07] service entrances, feeding a site or [02:10:10] battery or energy storage systems which [02:10:12] could come into play as well. [02:10:15] Similarly, site master planning will [02:10:19] help to inform infrastructure [02:10:20] investments. Ideally, infrastructure [02:10:24] investments, including power [02:10:25] infrastructure would provide for the [02:10:28] overall achievement of a site's [02:10:31] requirements. And you know, [02:10:34] additional focus in that area will help [02:10:36] us to understand what those ultimate [02:10:38] needs look like. On infrastructure sites [02:10:42] with multiple lines of business, [02:10:44] infrastructure is often a shared [02:10:46] responsibility. So this strategy [02:10:48] recommends look at different options for [02:10:51] how to manage that. In some cases, an [02:10:55] individual project can be overwhelmed or [02:10:58] be challenging to implement when [02:11:00] burdened on a single line of business. [02:11:02] So some additional consideration for how [02:11:05] those shared assets could be designed [02:11:08] and managed. You all are familiar with [02:11:11] the grant landscape at the federal Page 27 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:11:14] level, but certainly as we start to get [02:11:16] better understanding of that and outline [02:11:19] some of these projects, preparing some [02:11:21] of those grants to be grant project [02:11:22] ready will help us to be better [02:11:25] positioned or be well positioned I [02:11:27] should say, for future funding [02:11:29] opportunities. And then finally on those [02:11:32] last two points about clean technology [02:11:33] development and innovative business [02:11:35] models. The commercial availability of [02:11:38] electrified equipment, such as cargo [02:11:41] handling equipment, tugs and trucks, [02:11:44] as well as energy storage and grid [02:11:46] modernization technologies will be [02:11:48] likely in the billions of dollars of [02:11:50] investment at the end of the day across [02:11:53] the different port locations. [02:11:56] This is both kind of port direct as well [02:11:58] as the entities that are operating in [02:12:00] and around our ports and it's important [02:12:03] to provide for an opportunity to help [02:12:06] drive and demonstrate some of these [02:12:07] technologies and help to de risk those [02:12:11] opportunities. So considering a [02:12:14] kind of innovation focused maritime lens [02:12:16] I think will help to support that effort [02:12:19] and we'll also bring together goals [02:12:21] around maritime decarbonization and [02:12:23] economic development. [02:12:26] Next slide please. [02:12:30] As a part of the strategy, we also [02:12:32] outlined a overall implementation [02:12:34] framework. This contains two primary [02:12:36] work streams, one focused on [02:12:38] infrastructure planning and the other [02:12:40] infrastructure planning and delivery, [02:12:42] and the other on end use deployment. [02:12:44] Again, end uses are those things like [02:12:46] electrified cargo handling, equipment, [02:12:48] charging of vessels and vehicles, shore [02:12:51] power, et cetera. The site distribution [02:12:54] work stream will be focused on aspects [02:12:56] such as site master planning, [02:12:58] monitoring of power system availability, [02:13:00] planning for long lead projects like new [02:13:02] substations. It will also include [02:13:05] capital planning and project delivery. [02:13:07] The end use electrification work [02:13:09] workstream would focus on regular [02:13:11] industry engagement to understand where [02:13:13] industry is at in their progress towards [02:13:15] adopting these new technologies, [02:13:17] monitoring of technology readiness, [02:13:20] development of pilot projects, vetting [02:13:22] of projects, grant readiness, and [02:13:25] exploring new business models and [02:13:26] incentives. Next slide please. [02:13:31] And then finally, as we start to move [02:13:33] forward with the waterfront clean Energy [02:13:35] strategy, Sarah mentioned that work is [02:13:37] already underway and we're thinking [02:13:39] about how do we put how do we use this Page 28 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:13:42] roadmap to put in place some of these [02:13:44] projects and strategies. We'll be [02:13:47] considering some of the projects for [02:13:49] inclusion in the capital plans for the [02:13:51] port, as well as the Seaport alliance [02:13:52] and Seattle City Light. Earlier, a [02:13:55] speaker from Phil Ambrose from CL City [02:13:57] Light mentioned their MARTEP program, [02:14:00] which is essentially their maritime [02:14:03] capital plant or capital fund to help [02:14:06] support these projects. We will also be [02:14:09] looking at incentives and other [02:14:10] strategies to support technology [02:14:12] adoption and that work will be getting [02:14:15] underway later this year. Site master [02:14:18] planning has already been initiated for [02:14:20] Terminal 91, with initial results [02:14:23] expected within the next year. [02:14:26] Additional sites that have been [02:14:27] discussed include Terminal 18 and the [02:14:29] Central Waterfront as funding becomes [02:14:32] available. And then we'll be following [02:14:35] up with industry partners to consider [02:14:37] new plans or consider their plans and [02:14:40] new approaches for projects given [02:14:43] shifting priorities at the federal [02:14:45] funding, federal level and then finally [02:14:47] we hope to we expect to host a public [02:14:50] webinar later this year to share results [02:14:53] of the waterfront energy strategy and [02:14:54] talk about upcoming projects. Next slide [02:14:58] please. And with that, I think that's [02:15:00] the end. We're happy to welcome any [02:15:03] questions or comments you might have. [02:15:04] Thank you very much for that [02:15:06] presentation. At this time, I'll turn to [02:15:07] my colleagues for any questions or [02:15:08] comments they may have, beginning with [02:15:10] Commissioner Cho. Thank you for the [02:15:11] presentation. Just one quick question. [02:15:13] I noticed that when you broke down the [02:15:16] different types of energy used in one of [02:15:17] those in the bar graphs, you had [02:15:19] separated out EVs and truck charging. [02:15:22] And I'm wondering if you did that to [02:15:24] make the distinction between light and [02:15:26] heavy duty vehicles or what is the [02:15:28] distinction there? Yes, that's correct. [02:15:31] So there's actually three different [02:15:33] types of vehicles, if you will. There's [02:15:35] cargo handling equipment, which is an [02:15:37] off road, non road category. The EVs is [02:15:41] fleets. There's actually a fair number [02:15:43] of vehicles that are running around on [02:15:46] cargo terminals. I forget the, the [02:15:48] number, but it's, it's definitely in the [02:15:50] hundreds as well as the port zone [02:15:52] fleets. And then heavy duty trucking is [02:15:54] ridge trucking, as you, you would [02:15:55] imagine. Okay, so most of the CH is a [02:15:58] Seaport alliance function. So we've, [02:16:00] we've taken into account an inventory of [02:16:02] all the, the cargo equipment as well, Page 29 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:16:05] Correct? Yes. Great, thank you. That's [02:16:07] all I had. Commissioner Felleman, [02:16:13] thanks. Been looking forward to seeing [02:16:15] this presentation for a while. It's [02:16:16] quite a lot of work and appreciate all [02:16:18] that effort. I was, you know, I know you [02:16:22] know, the histograms are for peak [02:16:25] demand. So in terms of baseload, [02:16:28] that's sort of a different question. [02:16:30] Right. This is not just, we're not [02:16:33] always, everybody's not on at the same [02:16:35] time, cruise ships are not always there [02:16:36] and things like that. And then it also [02:16:38] speaks to the question of, you know, [02:16:40] where could storage work better? And so [02:16:43] I mean, did you also do some [02:16:46] calculations on base, base loading? We [02:16:49] do. We have there through the kind of [02:16:51] forecasting work, looked at baseline, [02:16:55] both daytime and evening demand as well [02:16:57] as peak demand. From an infrastructure [02:17:00] planning standpoint, peak demand is the [02:17:02] most critical element. So that's the [02:17:04] primary reason why we, we show that. So [02:17:08] I'm just wondering like, how do you try [02:17:11] to, you know, take the peaks off the [02:17:12] peak, you know, and so, so like one of [02:17:15] the things I was just wondering about [02:17:16] was looking at some of the other heavy [02:17:19] demanders like Nucor and like how can [02:17:22] we, you know, do cogen or do things that [02:17:24] we can help them invest in things that [02:17:26] could reduce their demand, have, have, [02:17:30] you know, again, trying to take the peak [02:17:32] off. Yeah. There. I can't speak in [02:17:35] detail to Nucor, but I know that CL City [02:17:38] Light has worked with Nucor specifically [02:17:40] on various Cogen ideas. They had some [02:17:42] projects previously that I believe [02:17:46] were not implemented. I forget the exact [02:17:48] reasons why. They also have a somewhat [02:17:51] unique relationship, I think with Nucor [02:17:53] because They're such a high demand [02:17:55] facility. So they have some dedicated [02:17:57] distribution service at their location, [02:18:00] which is separate from what we currently [02:18:03] have at the port. It could be that as we [02:18:05] start to look at some of these higher [02:18:06] cost investments there in the capital [02:18:09] recommendations, some of the biggest [02:18:11] expenses are additions of feeders or [02:18:13] kind of the power distribution from [02:18:14] substations to facilities that as we [02:18:17] start to look at those in later years, [02:18:19] I think they come online around 20 or [02:18:22] identified to come online around 2040. [02:18:24] There could be some opportunities for [02:18:26] thinking about how do you partner with, [02:18:28] you know, a new core or something like [02:18:30] that that has also. That was exactly [02:18:33] what I was thinking. Reduce the demand [02:18:34] rather than creating more power. I mean [02:18:38] that was the other question. In terms of Page 30 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:18:39] power generation, obviously these are [02:18:42] loads that you can't probably make up [02:18:44] for with solar. But are have [02:18:48] we in terms of the types of power [02:18:51] generation you were thinking about? [02:18:52] Because I know that's part of your mix. [02:18:55] Is there anything that you see there [02:18:57] that can put a dent in any of this? [02:19:00] You know, we did look at some generation [02:19:03] technologies. You know, solar obviously [02:19:05] is one of those. There was also a look [02:19:08] at generation through, you know, [02:19:11] hydrogen or natural gas based [02:19:14] alternative with you know, bio based [02:19:17] mix. You know, really those were, I [02:19:20] don't have the exact numbers on those, [02:19:22] but those were determined to be more [02:19:23] expensive than supply through the [02:19:26] utility system. So that kind of [02:19:28] generation plays a role, but it's, it's [02:19:31] not sufficient to meet some of these [02:19:33] critical, this magnitude of the loads. [02:19:35] In some cases, you know, it still could [02:19:37] be deployed and will help to bring down [02:19:39] some of those peaks. So that, that's [02:19:41] important. And then also as you [02:19:43] mentioned, anywhere you can bring down [02:19:45] those peaks, such as charging loads for [02:19:47] trucks, for example, that's where a [02:19:50] place where battery storage or managed [02:19:52] charging, which basically spreads out [02:19:54] that load across a wider span [02:19:57] of time, both of those things help to [02:20:00] reduce those peaks. And then finally, [02:20:02] because you brought up something I [02:20:04] wasn't thinking about, we just did this [02:20:06] grants for buying electric trucks to [02:20:09] subsidize. And that's coming and we're [02:20:11] looking at right, electrifying cargo [02:20:13] handling equipment. That's next. Low [02:20:14] hanging fruit. But where those parking [02:20:18] lots are for the trucks, I mean always [02:20:21] thinking about like the logistics of [02:20:22] what how do you serve the terminals best [02:20:24] and where do the truckers live and all [02:20:26] that question. But you know, what part [02:20:28] of the grid those truck parking lots are [02:20:31] was a consideration. I wasn't thinking [02:20:34] about it. So to the degree that you know [02:20:37] these things, are you making sure [02:20:39] seaport alliance and stuff like that. [02:20:41] These are preferred parking lots just [02:20:44] because of grid and that maybe it's not [02:20:47] perfect for accessing the terminal, but [02:20:50] in order to us get to the future of all [02:20:52] the juice that we want to spend, I'm [02:20:54] just wondering how, how is that [02:20:55] information. They're part of this, they [02:20:57] are part of this thing, but it's. So is [02:20:58] that just part of the planning? Yeah, I [02:21:01] think, I think that's one of the great [02:21:02] things about this kind of collaborative [02:21:03] effort is that their staff were key Page 31 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:21:05] parties of the core team that led this [02:21:08] body of work. And so we worked with them [02:21:10] to identify locations that we should [02:21:12] assess. Now, having said that, those [02:21:16] were theoretical locations, as you start [02:21:18] to get into additional details about [02:21:20] what drivers prefer and ingress [02:21:24] and egress site conditions, you know, [02:21:27] those things could change over time. [02:21:29] But there are certainly some areas we [02:21:31] know a lot more about congestion, I [02:21:33] mean, power congestion, if you will, on [02:21:36] the grid. And so we do know that the [02:21:38] kind of southern portion of the harbor [02:21:40] in the vicinity of Terminal 30, you [02:21:43] know, up to I think the Marine [02:21:45] maintenance shop pier, Marine [02:21:47] maintenance shop Terminal 25 and 30, [02:21:50] Terminal 18 and Pier 16 and 17, kind of [02:21:53] a loop along the. Was that the East [02:21:55] Waterway, that's a very tightly [02:21:57] constrained area and it's all currently [02:22:00] on one feeder from the utility. So one [02:22:03] of the initial plans, after we complete [02:22:05] shore power terminal 18 would be [02:22:07] thinking about separating that load to [02:22:10] an additional feeder because there is so [02:22:13] much power draw from that area and not [02:22:15] much capacity, so. And not much [02:22:17] resilience. So thank you so much for [02:22:18] that. Thank you. Thank you, [02:22:21] Commissioner Felleman, Commissioner [02:22:22] Calkins. Thank you, David. Thank you, [02:22:25] Sarah. [02:22:29] I'm particularly interested in the port [02:22:31] adjacent facilities and you mentioned [02:22:33] Coleman Dock and the Coast Guard base. [02:22:37] Commissioner Felleman brought up Nucor, [02:22:40] but there is a whole host. We're in this [02:22:42] ecosystem and we are kind of a string [02:22:46] of pearls properties with other property [02:22:48] owners in between us on the waterfront. [02:22:50] But then even just behind the [02:22:52] waterfront, you have potential for [02:22:55] significant increase in load demand as [02:22:58] well. Just thinking about not [02:23:02] only Nucor, but the cement facilities, [02:23:05] the glass facility that I think is [02:23:06] currently shuttered in part because of [02:23:08] costs of electricity, but also things [02:23:11] like the potential for electric switcher [02:23:14] locomotives or even catenary [02:23:18] rail lines that would run out, at least [02:23:21] in the urban areas to reduce diesel use [02:23:24] in urban centers. So I think there's a. [02:23:27] That the ports are these energy nodes [02:23:29] where we have enormous amounts of power [02:23:32] use that the number you used I think [02:23:35] is 70% right now is, is non [02:23:39] electric essentially 78%. 78%. [02:23:42] So I mean we're, we're an enormous [02:23:45] electric electricity user, but it [02:23:47] doesn't even account for, I mean it's, Page 32 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:23:50] it's one fifth of our total power usage. [02:23:53] And so as we shift more of our [02:23:55] electricity, we can address some of the [02:23:58] emissions questions. The other big thing [02:24:00] about that is if we produce the energy [02:24:02] here, we get to sell it to, to the user [02:24:05] rather than having to import all these [02:24:07] liquid fuels that are not produced here [02:24:09] locally. And so we're essentially just, [02:24:12] we're having to export dollars to import [02:24:15] energy. And if we can produce it here, [02:24:16] we could potentially make that a bit [02:24:18] more of a circular economy. So with that [02:24:21] preamble, it feels [02:24:25] like some of those port adjacent [02:24:28] facilities and the planning are some of [02:24:29] the near term stuff that we need to be [02:24:30] thinking about. With key why I think [02:24:33] this project is so successful is that [02:24:35] it's taking the whole ecosystem into [02:24:37] consideration. But another thing that I [02:24:40] know that you and your team are thinking [02:24:42] a lot about is 20 years out, [02:24:45] what is that ecosystem going to look [02:24:48] like? Where is power generation going to [02:24:49] happen? And I just want to be thinking [02:24:52] about in particular, [02:24:59] are there generation opportunities [02:25:01] either on port facilities or. [02:25:06] So there is a conversation that I'm sure [02:25:09] Director Kilroy can tell us all about [02:25:11] from the larger international maritime [02:25:13] shipping around the use of nuclear [02:25:17] in shipping. And a part of the question [02:25:20] becomes what do you do with all of this [02:25:22] baseload power on a vessel that uses it [02:25:25] for propulsion when it comes into port? [02:25:27] Could you potentially reverse cold iron [02:25:29] and use that power generation to feed a [02:25:33] grid at an urban port that has [02:25:36] significant generation itself? That's [02:25:38] not a question for today. I just think [02:25:40] that we ought to be thinking about in [02:25:43] our long term planning, not just [02:25:46] questions about tomorrow, but in a [02:25:48] decade from now or 20 years from now, [02:25:50] how are we building our systems to be [02:25:53] adaptable to these new potential [02:25:56] realities that a lot of which won't be [02:25:58] driven by any policy considerations that [02:26:01] we're making right now, but that we're [02:26:02] going to have to adapt to because of [02:26:04] changing shipping carrier requirements [02:26:08] or international requirements that we [02:26:10] will be a party to whether we like it or [02:26:13] not. And then the [02:26:17] other question I had is around ferries [02:26:20] in particular. With the change [02:26:27] in emphasis from the Governor's office [02:26:28] around what types of ferries are [02:26:32] going to be built in the near term, [02:26:34] does that change any of the load [02:26:36] requirements on the Seattle Central Page 33 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:26:38] waterfront, particularly related to [02:26:40] Coleman? That's a great question. I [02:26:43] don't know that I know the answer to [02:26:44] that. I think it probably depends mostly [02:26:46] on the relationship they have and the [02:26:49] agreements they have with Seattle City [02:26:50] Light for that power. I know that [02:26:52] they're, I believe they're still [02:26:54] currently planning for it as part of [02:26:56] their agreement. And then maybe [02:27:02] second to last question, so we're going [02:27:05] to see a fourfold increase in power in [02:27:07] electrical load requirements at the Port [02:27:09] of Seattle. How does that compare to the [02:27:11] overall forecast load for Seattle City [02:27:13] Light? Are they going to see a fourfold [02:27:14] increase or are we accelerating faster [02:27:18] than the rest of the users in the city? [02:27:22] That's another great question. I would [02:27:24] probably have to phone a friend, I think [02:27:26] from Seattle City Light. I'm not sure if [02:27:27] they're available. I'd love [02:27:31] to know. I'm sure it's probably in their [02:27:32] irp. We did indicate that that might be [02:27:35] a question you would have about how this [02:27:37] fits into the growing demand for [02:27:41] electricity generally. And so I don't [02:27:43] know if we want to invite Mr. Ambrose to [02:27:46] comment. He is online, [02:27:50] I believe so. And while he's coming on, [02:27:53] I'm curious, I think if, if we have [02:27:57] a fourfold increase, we're going to end [02:27:59] up representing based on current sort of [02:28:03] average loads for the city, something [02:28:05] like 20% of the city's total electrical [02:28:08] usage. Is, is that right? That figure [02:28:11] sounds high to me. I think we're much, [02:28:13] much, much smaller than that roughly. [02:28:16] So I mean what is the average [02:28:20] load that Seattle City Light is serving [02:28:22] right now? Again, I think again phone [02:28:25] print Sandy? No, I don't know [02:28:29] the average load. But I [02:28:32] would say that when in the early years [02:28:35] and we were working, working with [02:28:36] Seattle City Light, we know they were [02:28:38] also getting approached by some other [02:28:40] players like regional transit, like you [02:28:43] know, King County Metro, who was looking [02:28:46] to do that same type of forecasting [02:28:51] as well as some data centers ideas. [02:28:55] So I know they are being approached by [02:28:59] other big users and are really thinking [02:29:03] holistically about that total demand. I [02:29:05] don't know what those numbers are. We [02:29:08] can get those to you, but I know that [02:29:10] they really appreciate, yeah, they [02:29:12] appreciate, they really appreciate the [02:29:14] port stepping forward and talking with [02:29:15] them as well as these other users [02:29:17] because it really helps them better [02:29:19] understand what they need to do. I will [02:29:22] say we did recently talk with CLCLA and Page 34 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:29:25] they did indicate there are a fair [02:29:27] number. I think it was six data center [02:29:29] proposals that are in the south kind of [02:29:32] south area of their service area. [02:29:36] How realistic those are I think is to be [02:29:38] determined. But they have seen [02:29:40] significant changes even just in the [02:29:42] last couple of years and what, what [02:29:44] they're seeing, you know, potentially [02:29:46] coming on the books. So in that vein, [02:29:48] we also know that that utility is [02:29:50] looking at, we have a snapshot in time [02:29:53] for this forecast and that they have [02:29:55] other customers. And they also, I think [02:29:58] as we approach implementation, they'll [02:30:00] be looking at innovation. And I think [02:30:02] our colleagues said creative solutions [02:30:04] also so that we can do demand [02:30:07] management. We could look at emerging [02:30:09] technology. But for the moment, this is [02:30:12] our best blueprint. And I think we're [02:30:14] going to have to work with the utility [02:30:16] as their market evolves, as technology [02:30:18] evolves to, to make sure that we make [02:30:20] the most prudent investments and for the [02:30:23] most energy efficient investments as [02:30:25] well. And I feel like we've got a good [02:30:27] partner with the utility in that [02:30:30] endeavor. Thanks. [02:30:34] Are there any other comments from my [02:30:36] colleagues? Executive Director, Metro [02:30:38] Madam President, if I could just add to [02:30:40] the question that certainly that [02:30:42] Commissioner Calkins asked. Yeah. I was [02:30:44] also in conversations with Don Lundell, [02:30:46] the head of Seattle City Light, just the [02:30:48] other day because we're going to be on a [02:30:49] panel, not surprisingly, on waterfront [02:30:52] electrification down to California. [02:30:53] We're both going to be on there talking [02:30:55] about our experience here. But I think [02:30:57] the growth for Seattle City Light is on [02:30:59] the same trajectory four times, if not [02:31:02] more of those increasing as we go [02:31:04] forward. And they're looking beyond [02:31:06] where we are in our production. And I [02:31:07] think the big discussion is where do you [02:31:09] go beyond the hydropower that we're [02:31:11] experiencing now and how to plan for [02:31:13] that. So those it's looking forward to [02:31:15] just building on this as they look. [02:31:17] Seattle City Light looks to address the [02:31:18] overall, the overall issue. [02:31:22] Commissioner Felleman, building on that [02:31:24] point, it's just important to note that [02:31:26] City Light is in the process of [02:31:27] renegotiating their operating agreement [02:31:30] with the Skagit dams. [02:31:33] And so and the lack of snowpack and [02:31:37] things like that are source of concern. [02:31:40] So the unlimited nature of our green [02:31:43] energy, as you're pointing out, is not [02:31:45] that unlimited. And it is a little Page 35 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:31:46] disconcerting to me that we have all [02:31:48] these, this hydrogen enthusiasm on [02:31:51] the east side of the state because of [02:31:53] our low cost, abundant electricity [02:31:58] is I think, built on a little bit of a [02:32:01] false premise because it's getting more [02:32:04] and more difficult to produce that [02:32:06] electricity cost effectively. Thank you. [02:32:09] Thank you. Any other final comments from [02:32:11] my colleagues? Seeing none. [02:32:14] I'd just like to thank staff for their [02:32:16] ongoing work and collaboration with NWSA [02:32:19] and the city of Seattle, namely City [02:32:21] Light, to be able to facilitate a really [02:32:25] just transition towards a green economy. [02:32:27] And I think that the report that you've [02:32:30] enclosed in Full in our materials is a [02:32:32] wonderful document that I'm pleased is [02:32:34] going to be outward facing for everybody [02:32:36] to be able to see. And it [02:32:40] is a long arc to see that transformation [02:32:44] happen. But it's happening with [02:32:46] incredible intentionality. So thank you [02:32:49] so much for your stewardship of this and [02:32:51] it's something that we're all committed [02:32:52] to. Thank you very much and I will [02:32:56] excuse you and we can move forward in [02:32:57] our agenda. Clerk Hart, please read the [02:33:00] final item into the record and Executive [02:33:01] Director Metruck will introduce it. [02:33:03] Thank you. This is agenda item 11c the [02:33:05] 2024 financial performance briefing. [02:33:09] Commissioners, last but not least, [02:33:11] we're glad to report the 2024 financial [02:33:14] performance results to you this [02:33:16] afternoon. Let me give you a couple [02:33:18] numbers here. SEA passenger volume was [02:33:20] 3.4% higher compared to 2023 and [02:33:23] 1.6% above the 2019 [02:33:27] pre pandemic volumes. The 2024 crew [02:33:30] season representing the 2020 for 25th [02:33:33] year of cruises between Seattle and [02:33:34] Alaska ended on October 28th last year [02:33:38] with 1.8 million revenue passengers. [02:33:41] The port's operating revenues and the [02:33:43] basis of these basis of These operations [02:33:46] for 2024 were 1.040 [02:33:53] million which is 17, which is [02:33:56] 1 billion over a billion which is which [02:33:59] is $17 million above the average budget [02:34:01] and 70.9 million higher than 2023. And [02:34:04] this is the first time ever that [02:34:06] operating revenues passed the $1 billion [02:34:08] mark here at the port. It's an important [02:34:11] milestone. Operating expenses were 646.9 [02:34:17] million 29.5 or 4.8% [02:34:21] higher than budget which the [02:34:23] presentation will detail those [02:34:26] additional higher items. While our [02:34:28] financial performance is strong there is [02:34:30] still significant uncertainty on the [02:34:32] horizon. From our environmental [02:34:34] remediation to national economy to Page 36 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:34:36] global geopolitical risks and trade. We [02:34:39] will continue to monitor our 2025 [02:34:42] financial performance closely and we'll [02:34:44] have more discussions with you as we [02:34:46] start planning for the 2026 budget in [02:34:48] the coming months which is coming very [02:34:50] quickly now that we're here in in April. [02:34:53] So the presenters this afternoon are Dan [02:34:57] Thomas, Chief Financial Officer and hung [02:35:03] that I think so here. It's not here. [02:35:06] And I guess Michael Tong, I don't know [02:35:07] who's presenting as well. Yeah, so. And [02:35:10] Kelly Zupan. And Kelly Zupan. So okay. [02:35:12] I'll turn it over to Dan to start us off [02:35:14] and go through the presentation. So [02:35:16] okay. Thank you Executive Director [02:35:17] Metruck and good afternoon commissioners. [02:35:19] We're really delighted to be here to be [02:35:21] able to present our 2024 year end [02:35:23] financial results. After some delays as [02:35:25] you know, we had a cyber attack last [02:35:27] year which shut down all of our [02:35:29] financial systems, financial and other [02:35:31] systems. So we're really glad to finally [02:35:32] be able to be here and present the 2024 [02:35:35] results. You know, first and foremost, [02:35:37] I want to acknowledge and recognize the [02:35:41] incredible professionalism, hard work [02:35:44] and dedication of our accounting and [02:35:46] financial reporting team led by Lisa [02:35:48] Lam, who have worked just diligently and [02:35:51] patiently and persistently for many [02:35:53] months to get our financial records up [02:35:55] to date after being out of service for [02:35:58] so long and also fully reconciled after [02:36:01] the cyber attack and the loss of our [02:36:02] systems. They were finally able to close [02:36:04] our 24 books, 2024 books, just about two [02:36:07] weeks ago, which is about two months [02:36:09] later than normal. So also as a result [02:36:12] of that, our outside audit should be [02:36:14] completed and our financial statements [02:36:16] issued around the end of June, just to [02:36:18] give you a heads up. And that is a bit [02:36:20] later than normal as well. I also [02:36:23] wanted to point out that the cyber [02:36:24] attack created a loss of visibility into [02:36:28] our financial performance during the [02:36:29] second half of the year following the [02:36:31] attack in August. So that made it very [02:36:33] difficult for us because we could not [02:36:34] produce our monthly financial reports or [02:36:38] prepare the year end projections that we [02:36:40] normally do to give us greater [02:36:41] visibility into our performance four [02:36:42] minutes during the year. So that was, [02:36:43] that was a handicap for us and we were [02:36:45] basically flying blind for much of the [02:36:47] last half of the year. We could move to [02:36:50] slide one. [02:36:57] Steve just covered most of these [02:36:59] highlights, but I wanted to note a few [02:37:01] other items to bring to your attention. Page 37 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:37:04] So first of all, today's report will [02:37:07] reflect the ports organization prior [02:37:11] to the reorganization of maritime and [02:37:13] economic development divisions last year [02:37:15] because it's very difficult for us to [02:37:17] reconfigure our financial systems mid [02:37:19] year. So as you know, that reorg [02:37:23] did move the portfolio management or the [02:37:26] commercial leases operations over into [02:37:28] from economic development into Maritime. [02:37:32] But the 2020, 25 budget does reflect [02:37:35] those changes. Also similar to past [02:37:38] years. And you'll see in the report that [02:37:40] we also recorded the pension credit from [02:37:42] the Washington State Department of [02:37:43] Employee Retirement Systems. This is [02:37:45] consistent with past years. The credit [02:37:47] we booked was $22.8 million. And that [02:37:51] largely reflects, as in past years, the [02:37:54] strong investment performance [02:37:55] experienced by the pension system. The [02:37:59] credit has the effect of reducing [02:38:00] operating and maintenance expenses which [02:38:03] then flows through all of our divisions [02:38:05] and all of our departments. But we [02:38:06] bought in the interest of full [02:38:08] transparency, we will be presenting [02:38:09] numbers today that show both the numbers [02:38:11] with and without the pension credit. So [02:38:13] you have a greater sense of what the [02:38:15] expenses were without the credit. And [02:38:18] then finally, today's presentation [02:38:20] focuses primarily on the operating [02:38:22] results for 2024. But I want to note [02:38:25] that our complete financial picture, [02:38:27] which includes our non operating [02:38:28] operating items, is provided on page six [02:38:31] of the written companion report which [02:38:33] you should also have in your packet. [02:38:35] And I wanted to highlight that on the [02:38:38] full financial statements. We are [02:38:40] recording a 91 million dollar special [02:38:43] item and this relates to the booking of [02:38:46] a portion of the environmental liability [02:38:48] costs related to the Terminal 25 cleanup [02:38:51] and habitat restoration project. As you [02:38:53] know, we have hundreds of million [02:38:55] dollars in future future environmental [02:38:57] liabilities over the next 10 years or so [02:38:59] in our financial plan and the county [02:39:01] rules do require that periodically we [02:39:04] book portions of those as we reach a [02:39:06] certain threshold where they're more [02:39:09] predictable and estimable so that [02:39:12] reflects that cost related to that [02:39:14] specific project. And again to point out [02:39:15] that's not a cash expenditure in the [02:39:17] year, it's just booking a future [02:39:19] liability on our books and that's only a [02:39:21] portion of that with that project. [02:39:24] So we plan to be very brief in the [02:39:26] interest of time, but feel free to [02:39:28] answer or ask any questions. We'll be Page 38 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:39:30] happy to answer you with that. I think [02:39:31] I'll turn it over to Han is [02:39:38] your microphone Good afternoon [02:39:41] Commissioners President Kasagawa [02:39:43] Commissioners and Executive Director [02:39:45] Metruck Next slide. [02:39:50] Next slide please. The 2024 [02:39:54] passenger growth rebounded and surpassed [02:39:57] the 2019 Covid level by 1.6%. [02:40:01] The 2024 passenger was slightly lower [02:40:04] than the budget amount. Next slide. [02:40:10] 2024 net operating income was with the [02:40:14] pension credit stood at $341 million [02:40:18] which is 17 million higher than the [02:40:20] budgeted amount. The higher than [02:40:23] expected net operating income was [02:40:25] primarily driven by the higher non [02:40:27] airline revenues, though it was partly [02:40:30] offset by the increase in operating [02:40:33] expenses. All key financial measures [02:40:36] outperformed the budget. I will dive [02:40:39] deeper into the details in the following [02:40:41] slides. Next slide please. [02:40:46] The key drivers of the increased [02:40:48] operating expense variance consists of [02:40:50] an increase of 11.8 million in payroll [02:40:55] primarily driven by the higher contract [02:40:58] weights. This Also included in this [02:41:01] number is the 7.4 million in the retro [02:41:05] pay tied to the contract negotiation [02:41:08] that was completed in 2024. The Highline [02:41:12] Water District settlement expense of 6.7 [02:41:15] million for the decommissioning of the [02:41:18] tyee well and the retention of the [02:41:21] easement. We also have the increase in [02:41:23] legal expenses for the airport share of [02:41:26] the cost related to the legal matters. [02:41:29] Also the increased cost of the police [02:41:31] services at the airport and then the [02:41:35] increase in expenses were partially [02:41:37] offset by the pension credit that Dan [02:41:40] mentioned on the regarding the [02:41:43] retirement pension credit that was [02:41:46] amounted to 18.6 million. [02:41:51] Next slide please. [02:41:54] 2024 operating expenses were 5.9% over [02:41:59] budget. The previous slide had outlined [02:42:01] the key drivers of the operating expense [02:42:04] variance. So this slide is giving you a [02:42:06] comparison of the actual operating [02:42:09] expenses versus budget by key [02:42:11] components. Next slide please. [02:42:16] The aeronautical business is a cost [02:42:19] recovery structure where costs are [02:42:22] covered through the rates and charges [02:42:24] airline payment. The actual aeronautical [02:42:27] revenues were 518 million which [02:42:31] is less than 1% of the budget amounts. [02:42:34] As mentioned earlier, there were [02:42:37] increased operating expenses. However, [02:42:39] there was also a $28 million settlement [02:42:43] received from clock construction which [02:42:45] helped offset the higher operating Page 39 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:42:48] expenses. This settlement was related to [02:42:51] the International Facilities Arrival [02:42:54] Facility litigation. Next slide please. [02:42:59] The non airline of the business [02:43:01] typically the non airline side of the [02:43:04] business typically follows for profit [02:43:07] model. As you can see, the actual non [02:43:10] aeronautical revenues were 348 million [02:43:13] which is 15 million higher than the [02:43:16] budgeted amount. This represents a solid [02:43:19] performance reflecting positive growth [02:43:22] in several key areas. [02:43:25] Both parking and rental car revenues [02:43:28] show strong performance. There was [02:43:31] significant growth in the port owned [02:43:33] lounges driven by higher passenger [02:43:35] demand. Continued growth in airport [02:43:38] dining and retail revenues due to higher [02:43:40] passenger volume. Next slide. [02:43:46] The debt service ratio Debt service [02:43:50] coverage ratio is a key financial [02:43:52] metrics used to assess the port's [02:43:55] ability to cover its debt obligation [02:43:57] using its operating income. Pardon my [02:43:59] interruption. I just want to note for [02:44:00] the record that Commissioner Mohamed is [02:44:01] joining us. Virtually for 2024, [02:44:05] the actual debt service coverage was at [02:44:08] 1.9 which is quite strong. [02:44:11] The funds available exceeded the budget [02:44:14] and here are the key factors driving [02:44:17] that outcome. The increase in non [02:44:20] airline revenues and the settlement [02:44:22] related to the IAF facility project. [02:44:26] Although the revenues were up, [02:44:28] operating expenses also increased as [02:44:31] well. Next slide please. [02:44:36] 2024 ending Airport Development Fund [02:44:40] balance was at 743 million [02:44:43] which was 41 million higher than the [02:44:46] budgeted amount. Key drivers of the [02:44:48] higher fund balance include the [02:44:51] beginning balance was $27 million higher [02:44:54] than anticipated which provided a [02:44:57] stronger starting point for the year and [02:45:00] the increase in the sources of cash and [02:45:03] was higher than expected due to the non [02:45:06] airline revenues and lower than expected [02:45:09] use of cash for the capital expenditure. [02:45:13] I'm sorry, just as a point of order, I [02:45:16] see that this presentation is 78 slides. [02:45:19] Are you going to go into depth on all of [02:45:21] those? No, [02:45:25] many of those are in the appendix. No, [02:45:28] that's before the appendices. That's [02:45:29] before the 78. [02:45:33] So I just want to make sure that we're [02:45:35] coming to time on going to be kept to [02:45:37] time on this. I've got a total of 25 [02:45:39] minutes for this presentation. Yeah, [02:45:41] yeah. Thank you. Thank you. Yeah, we'll [02:45:43] speed it up. Next slide, please. So on [02:45:46] the capital spending, we, it was at 684 Page 40 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:45:50] million, which was 100.2% higher than [02:45:53] the budget. And then usually in [02:45:57] previous years, the historical spending [02:46:00] was typically hover around the 80%. [02:46:03] Moving to the next slide, please. [02:46:08] Looking forward to 2025 capital [02:46:11] spending. We are forecasting to spend [02:46:15] 816 million for 2025 capital [02:46:19] spending. And that's all I have for the [02:46:21] airport portion of the presentation. [02:46:23] Are there any questions? Commissioner [02:46:26] Cho, is this thing working? [02:46:30] Oh, it is. Okay. Thanks so much for that [02:46:33] presentation. One thing that I wanted to [02:46:35] ask you about is if you go back to the [02:46:38] financial summary, the aeronautical [02:46:42] revenues, I think from my understanding [02:46:44] of how we operate, are kind of awash. [02:46:46] Right? Because the aeronautical revenues [02:46:48] basically cover the expenses for [02:46:50] operations. Right. So we don't really, [02:46:52] I guess even though we factor that into [02:46:55] total operating revenue, it's not [02:46:56] really. It's net zero, essentially. [02:46:59] But what I'm noticing here is that we [02:47:01] have $517 million in aeronautical [02:47:04] revenues, but our actual operating O and [02:47:06] M expenses exceed the $517 million. [02:47:09] So I'm wondering why there's a delta of [02:47:13] about eight. You want to take that out? [02:47:16] Yes, I can. And does that mean our [02:47:18] aeronautical revenue are not keeping up [02:47:20] with our operational expenses? Yeah. So [02:47:23] as mentioned, the aeronautical revenues, [02:47:26] cost recovery included the debt service [02:47:28] and operating expenses. However, we had [02:47:30] the $28 million in the IAF settlement [02:47:34] that we put it into the rate base. So [02:47:37] therefore, we reduced the revenue that [02:47:39] we're offsetting with the increase in [02:47:41] operating expenses. Okay, so this [02:47:43] variance is really a one time thing. [02:47:45] Yes, it is. Okay, that's great. Thanks [02:47:47] for the clarification. Sorry to ask such [02:47:49] a wonky question, [02:47:52] Commissioner Felleman. I was [02:47:55] wondering, like we keep on Talking about [02:47:57] the KPIs, you know, we have the [02:47:59] construction expenses and whether [02:48:01] they're on budget or not. The question [02:48:03] is, did we build as much as we wanted [02:48:05] to? Is that expense a reflection of [02:48:09] cost savings or just we didn't get it [02:48:12] done on the capital side? Yes, we did. [02:48:16] We spent more than what was budgeted. [02:48:18] So we, due to the SEA Gateway project, [02:48:22] that the anticipated timing [02:48:26] of that spending was moved along [02:48:30] faster than anticipated. So I think [02:48:33] that's a really. I mean, so we. We spent [02:48:35] more because we got more done. Correct. [02:48:37] So, I mean, that's kind of an important [02:48:39] way to understand the number. Right. In Page 41 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:48:41] this particular year, so this is just [02:48:42] one slice. As you know, the capital plan [02:48:44] is multi years with lots and lots of [02:48:46] projects. So it's a one year look. So [02:48:48] take how we spent against our. Take a [02:48:50] bow. Yeah, we think it's great. Results [02:48:53] average out over time. But for this year [02:48:55] to understand that Delta, that makes [02:48:57] sense. We won't expect it on you every [02:49:00] year. All right. Executive director [02:49:02] Metruck. Something to add. I'm just going [02:49:04] to add commissioners, that, that and [02:49:06] it's just one measurement of course of [02:49:07] progress on the capital plan, but it is [02:49:09] one Metruck that we use. [02:49:12] I see that North SEA Tech park is listed [02:49:15] as a key business event, but do we have [02:49:17] any estimation of what the actual [02:49:18] financial implication of that might. [02:49:23] I'm not sure if that's been fully worked [02:49:24] out yet. It's okay. I was just [02:49:26] wondering. Yeah. And then also we added [02:49:30] to our legislative priority list a [02:49:33] change to the civil asset forfeiture law [02:49:36] that would make our drug interdiction [02:49:38] fund available for anti trafficking [02:49:41] purposes. And that is in conference [02:49:44] right now, which is the last step before [02:49:46] being signed by the governor's office. [02:49:48] And so I'm just wondering if that [02:49:52] might be a source to either offset our [02:49:55] programmatic expenses or maybe policing [02:49:58] services. And it's not something you [02:50:00] need to have the answer to right now, [02:50:02] but it is to the tune of $3 million. So [02:50:04] it's worth raising. Is that in addition [02:50:07] to what they currently receive or is [02:50:09] that just a. Widens the expenditure? [02:50:11] It's what's in the. What's. I think what [02:50:14] we have right now. But it's. There's [02:50:16] very such a narrow scope of what we're [02:50:18] allowed to use it for. It just expands [02:50:20] the scope of what we could use it for, [02:50:22] which might. Which could include either [02:50:24] policing services if they're doing drug [02:50:26] interdiction, arms interdiction [02:50:31] or anti trafficking efforts. We'll have [02:50:33] to get more info on that. Sure. Just [02:50:34] flagging it sounds like breaking news. [02:50:36] Wonderful. Okay, back to you. [02:50:39] Thanks. That's all I have. I will turn [02:50:41] it over to. To Kelly Zupan. Thank you. [02:50:47] Good afternoon, Commissioners. Kelly [02:50:48] Zupan, Director of Seaport Finance. [02:50:53] Let's go ahead and move right into the [02:50:56] Seaport key metrics. Next slide please. [02:51:00] As for our key metrics at the alliance, [02:51:02] there was an UN there was a planned [02:51:04] uptick from Terminal 5 in containers and [02:51:08] some unplanned military and auto [02:51:10] volumes. Crews saw leveling off [02:51:14] to pre pandemic trend lines. Schul Bay [02:51:17] Marina showed continuing high occupancy Page 42 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:51:20] and after a down year in 2023 grain [02:51:23] rebounded to the 10th highest year in [02:51:25] history. Next slide, please. [02:51:33] Net income ended the year in 2024 [02:51:36] about 4.5 million higher than budget [02:51:39] with totaling $26.7 million. [02:51:43] Cruise Grain and our distributable [02:51:45] income from the alliance were all [02:51:47] higher. Economic development had lower [02:51:49] revenues and lower variable expenses [02:51:52] from a challenging competitive. [02:51:54] Competitive environment for the [02:51:55] conference and event centers. We have [02:51:58] right sized the conference and event [02:52:00] Centers for our 2025. [02:52:04] Next slide, please. [02:52:08] Another one. [02:52:11] Excellent for the Maritime division. [02:52:15] Revenues are holding up across all [02:52:17] waterside business lines. We're making [02:52:20] progress on capital initiatives. As you [02:52:22] can see with our capital spending, it's [02:52:24] outpacing budget for the first time [02:52:26] since the creation of the Alliance. And [02:52:29] we've also negotiated our first large [02:52:31] scale habitat purchase and sales sale [02:52:33] agreement. Next slide, [02:52:36] please. [02:52:39] Stormwater expenses are right at budget [02:52:42] and NOI is off slightly from revenue due [02:52:44] to a timing issue that will be [02:52:46] reconciled in 2025. Our fund balance is [02:52:49] in line with the 50% of operating [02:52:52] expense directive. [02:52:56] Next slide, please. [02:53:02] As mentioned earlier, we had strong [02:53:04] container and cargo volumes that are [02:53:06] driving the favorable revenue. The [02:53:08] increased volumes did drive up variable [02:53:11] expenses for the alliance despite some [02:53:13] deferred maintenance projects. [02:53:17] Next slide, please. [02:53:22] Here you see that the Northwest Seaport [02:53:25] Alliance Favorable revenue numbers were [02:53:27] the key to the our 5.5 million in [02:53:30] overall favorable revenue and [02:53:34] our $5.8 million in favorable net [02:53:37] operating income. And we can. [02:53:41] Next slide, please. Feel free to stop me [02:53:45] ask questions. [02:53:49] Finally, we'll end with the economic [02:53:50] development division here. Our neca. [02:53:52] Our net operating income is in line with [02:53:54] the budget. The unfavorable net impact [02:53:57] of conference and event centers was [02:54:00] offset by lower budget spending across [02:54:02] the other sectors of the division. To [02:54:05] the right is a list of notable [02:54:07] advancements from the economic [02:54:08] development team, including one of our [02:54:10] largest real estate acquisitions ever at [02:54:12] SEA. And that [02:54:16] does it for the Seaport Group. Unless Page 43 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:54:18] there's any questions. Excellent. [02:54:20] Commissioners, what questions do you [02:54:22] might have? Commissioner Felleman? [02:54:26] 90. 90% occupancy in maritime. [02:54:31] That seems high. That's good, right? [02:54:33] Better than previously or. No. And it's. [02:54:36] It's all right when you factor in the [02:54:38] edd because part of it is the World [02:54:42] Trade Center. We were having a little [02:54:44] bit of a challenge leasing out some of [02:54:46] the space and. Well, that's what I [02:54:47] thought. So. 90% I thought was good. I [02:54:49] mean. Well, this is the. For maritime. [02:54:53] This is the previous. The breakout. [02:54:56] So. Yeah. All right. So it'll be a. I [02:54:59] wouldn't. 90% an aspirational goal that [02:55:02] we'll have going into 2025. But there's [02:55:05] a lot of headwinds in the mixing of [02:55:07] that. That helps me explain that. [02:55:10] Thank you. [02:55:13] Anything else here, Commissioners, [02:55:16] please continue. Thank you. Good [02:55:19] afternoon, Commissioner and Executive [02:55:21] Director Matric. Next slide please. [02:55:26] So the table on the left is the [02:55:29] financial summary for Central services. [02:55:31] Operating revenues 240,000 over [02:55:34] budget mainly due to the drug for [02:55:36] features. Revenue from police [02:55:38] departments. On the expenses side, [02:55:41] 35 million over budget without the [02:55:44] pension credit. And with the pension [02:55:46] credit 23 million over. For several [02:55:49] reasons that I will explain in the next [02:55:51] slide. You're very familiar with the [02:55:54] business highlight here, so I. The [02:55:58] previous slide please. [02:56:02] So I won't go into detail, go for each [02:56:04] of those, but just want to point out the [02:56:07] last bullet. The port have [02:56:11] participated over 83 or 83 outreach [02:56:14] events. Focus on local communities to [02:56:17] promote jobs at the port. And we also [02:56:20] hire 58 high school interns and 54 [02:56:25] post secondary intern last year. [02:56:29] Next slide please. [02:56:33] This slide shows the 2022-2024 [02:56:38] actual as well as the 2024 budget so [02:56:41] that you can see the trend. Just want to [02:56:44] highlight that the 35 million over [02:56:47] budget without a pension credit and then [02:56:51] again with the pension credit 23 [02:56:52] million. And that's mainly due to [02:56:55] several factors. One is the higher [02:56:56] payroll and then also the promotional [02:57:00] expenses. That's due to the unbudgeted [02:57:03] Seattle additional payment to Seattle [02:57:07] Aquarium as well as unbudgeted item to [02:57:10] defence water funds and also some legal [02:57:14] expenses. Next slide please. [02:57:19] And turning to the port wine number one [02:57:21] more slide please. This trust showed the [02:57:26] portwide operating revenues breaking Page 44 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [02:57:28] down by our nautical revenue non [02:57:32] outnockable revenues as well as the [02:57:34] seaport revenues and also the [02:57:38] net operating income which is the blue [02:57:40] line there. So you can see overall [02:57:44] the operating revenues were 17 million [02:57:48] over budget. And the expenses also over [02:57:50] budget for the reason that Dan mentioned [02:57:54] a bit earlier as well. So the net [02:57:58] operating income before depreciation [02:58:00] almost 58 million without the pension [02:58:03] credit and 29.5 million over budget. [02:58:08] Next slide please. [02:58:11] And this is a table that pretty much the [02:58:13] same information as the previous slide. [02:58:15] Just provide you some detailed numbers. [02:58:17] So I won't go over that unless you have [02:58:19] questions. Next slide please. [02:58:23] Last but not least is the capital [02:58:25] spending for the port Y as Han and Kelly [02:58:28] mentioned earlier, very close to the [02:58:30] budget. And that's the closest that I [02:58:33] ever saw, you know, at the port, 0.3% [02:58:37] below budget. So that's the as close as [02:58:39] we can get. So with that, that concludes [02:58:43] our presentation. I do want to mention [02:58:45] that there's more slides in the appendix [02:58:47] as well as in the written report. So [02:58:50] happy to answer any question that you [02:58:52] may have. Thank you, Commissioner Cho. [02:58:56] Actually, I'm sorry, Don. Can we get [02:58:57] Kelly back here? I was still digesting [02:58:59] your numbers before we moved on, and I [02:59:01] have a quick question for you. Okay. [02:59:02] Come on up, Kelly. Thank. [02:59:07] Yeah, so I'm looking at the EDD [02:59:10] numbers, and I heard you say that. [02:59:17] Well, let me back up. So if I'm. If I'm [02:59:19] understanding these numbers correctly, [02:59:20] we lost $10 million in [02:59:25] the EDD. Is that accurate? [02:59:29] Yes. Okay. And that seems to be a [02:59:33] $3 million increase compared to 2023. [02:59:38] I'm curious, what is contributing to the [02:59:41] increased loss in that line of business? [02:59:43] And I understand. I think when you [02:59:45] presented it, you said that it was made [02:59:46] up by cutting down on costs, which is [02:59:49] good. But I'm curious. I mean, I [02:59:53] remember before our goal was to try to [02:59:55] get EDD to break even, and it seems like [02:59:58] we are. Our goal has [03:00:01] never been to get EDD to break even. It [03:00:03] was to get Maritime to break even the [03:00:06] Economic Development Division. There's [03:00:09] not enough revenue in there. And then [03:00:12] the biggest revenue driver being the [03:00:14] conference and event center has like a [03:00:17] 15% margin. I mean, almost all of the. [03:00:21] Because of all the variable expenses. [03:00:23] So we. [03:00:28] I'm curious, what variable expenses do [03:00:30] we have at the conference center? It's Page 45 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [03:00:31] operated by a management company and we [03:00:34] receive a lease on that. So what. What [03:00:36] are we. We don't. We don't receive. [03:00:38] It's a management agreement. So we [03:00:41] basically. All of the financials flow [03:00:44] through. It comes across as a third [03:00:46] party expense. And all of those costs [03:00:50] flow through everything. All the food, [03:00:52] the labor costs, our payment to [03:00:56] them, it all flows through in our [03:00:58] management agreement with them. Okay, [03:01:00] so we're still operating Bell harbor [03:01:04] through the Oppenheimer our. Fine. [03:01:06] Through our finance. Our financials are [03:01:08] through our financials. It's operated [03:01:10] through our financials. Yes. Okay. And [03:01:13] so I'll go back to my original question. [03:01:16] What is causing the increase in the [03:01:18] variance between our operating income [03:01:20] and expenses? Is it that. Is it the [03:01:23] conference center? Well, we have a lot [03:01:26] of groups like tourism falls into this P [03:01:29] and L right there. And that's a two, [03:01:31] two and a half million dollar annual [03:01:34] expense that doesn't have. Doesn't [03:01:36] generate any revenue. We've got small [03:01:39] business. The grants, all of these [03:01:41] pieces in here are flowing through the [03:01:43] financial report. Even though some of [03:01:45] them are funded via the tax levy, they [03:01:48] still show up in this financial [03:01:50] statement here. And so there's a number [03:01:53] of initiatives that don't have. [03:01:57] I mean, there's. Commission keeps [03:01:58] spending money through EDD that doesn't [03:02:00] generate. Yeah, it's. [03:02:03] Is there a way to classify this [03:02:05] differently so it doesn't look like ED [03:02:08] is losing so much money? Because to your [03:02:10] point, the source of revenue for these [03:02:11] programs is not coming from EDD [03:02:13] generated revenue. If I could maybe jump [03:02:14] in on this one. It's been kind of a [03:02:16] challenge for some years because I [03:02:18] always look at EDD in the past previous [03:02:21] reorganization is sort of a combination [03:02:23] of a business and a nonprofit [03:02:24] organization because a lot of what they [03:02:27] do are these programs like economic [03:02:29] development grants, like tourism grants, [03:02:31] like diversity and contract programs [03:02:33] that have no revenue associated with [03:02:35] them. So they're kind of a drag on the [03:02:38] business performance of edd. Now that's [03:02:41] really going to change with the reorg [03:02:43] now because most of. Actually most of [03:02:44] the revenue generating components of EDD [03:02:47] have moved over to the Maritime [03:02:49] division. So going forward, EDD is [03:02:51] really going to be just a cost center. [03:02:53] It's really not going to be a income for [03:02:55] edd. It's a set of costs. [03:02:58] We went the other way, but the most of Page 46 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [03:03:00] them are funded by the tax levy. So if [03:03:02] you, if you think about it, it's like [03:03:04] what we call the community programs, [03:03:05] where these are things that are [03:03:07] externally focused. They're not [03:03:08] generating revenue for us, but they're [03:03:10] spending on. On programs of value that [03:03:13] the Commission has endorsed. I did want [03:03:15] to clarify, Commissioner Cho, when you [03:03:17] mentioned there was a $3 million [03:03:18] increase loss from 24 to 23, I'm not [03:03:21] seeing that. I'm looking at the written [03:03:23] report and it looks like a $1 million [03:03:25] change from. In 23, our operating income [03:03:27] was 17 million. Our expense was [03:03:31] 24 million, which is a very. Which is a [03:03:33] delta of 7 million. And last year our [03:03:37] loss was 10 million. So that. Is there a [03:03:39] chart on. Are you looking at one of the [03:03:41] charts on the slide? 16. We could pull [03:03:43] that up. [03:03:46] That's actual versus budget. [03:03:51] This is C4 you want? Yeah, so that's [03:03:54] right. So 23 actual was 17. [03:03:58] 23 economic development expense was [03:04:01] 24. So that's a delta of 7. [03:04:05] And then similarly in 24 actual, [03:04:08] 17, you're looking at. Are you looking [03:04:11] at budget 24, [03:04:14] 27? [03:04:19] I don't know. You tell me. What am I [03:04:20] looking at? That's what I'm looking at [03:04:22] right now. 17.1, [03:04:25] 70.215 under [03:04:29] 23, actual operating revenue. [03:04:32] Yeah, no, it did go up $3 million okay, [03:04:36] so I can do math. Thank you. [03:04:42] Okay, then Dan can confirm. [03:04:46] We can look more closely into that if [03:04:48] you'd like. Just take it back to you [03:04:49] with maybe some of the specific [03:04:50] components of that. Yeah, I just, you [03:04:52] know, I totally understand that like EDD [03:04:54] is not supposed to make money for us, [03:04:56] but from an optic standpoint, it looks [03:04:58] like it's increasingly losing money from [03:04:59] us. And so to the extent that we can, [03:05:04] you know, if we're going to separate out [03:05:06] the merit, like if we're moving stuff [03:05:08] that generates revenue to the revenue [03:05:11] side, but we're keeping the real estate [03:05:13] stuff on the EDD side. Is that accurate? [03:05:16] Real estate development. So is that [03:05:18] going to maritime or is that going to [03:05:19] staying in Eddie? It'll stay in edd. [03:05:22] Okay. So the revenues associated with [03:05:24] the projects will accrue to Maritime. [03:05:26] They will be a service provider, the [03:05:28] portfolio management that manage. Okay, [03:05:32] well, I'd like to have a follow up [03:05:33] conversation. I feel like there's a way [03:05:34] to categorize this in a way that doesn't [03:05:35] look like EDD is like total dead weight Page 47 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [03:05:38] because they do total, they do some [03:05:39] great work for us and do great work in [03:05:41] the community. And so I just, I hate [03:05:44] that we frame it this way. [03:05:47] Right. In terms of they're losing money. [03:05:49] Because it's not. I mean, why can't we [03:05:50] say we're investing money? Well, we are. [03:05:53] Yeah. And again, moving forward, [03:05:54] starting with 2025, there won't be [03:05:56] revenue associated with EDD or very tiny [03:05:59] amounts. It's, it'll be, There will be. [03:06:01] Because you're keeping the, the, the, [03:06:04] the comfort center. No, that moves over [03:06:06] to maritime. Oh, I thought you just said [03:06:08] that it's not. No, that would be in 24. [03:06:10] It was not. I mean, it was part of Eddie [03:06:13] 25. All the commercial leases. Right. [03:06:16] They all move over to maritime. So EDB [03:06:18] has very little, I believe, revenue [03:06:20] associated with it. It's primarily costs [03:06:23] again, which are providing a variety of [03:06:25] services and really should not be looked [03:06:27] at as having a loss. Right. [03:06:30] It's a program. Yeah. Okay. We're going [03:06:33] to move forward. Commissioner Calkins [03:06:35] and then Commissioner Felleman. And [03:06:36] back to the presentation, please. Just [03:06:38] two quick comments questions before I [03:06:40] got to run out the door. So I noted [03:06:44] the capital spending accuracy. That was [03:06:46] incredible. I know we typically are [03:06:49] significantly under what we anticipate [03:06:51] and it, it's also [03:06:55] not just how close you predicted that, [03:06:57] but also the significant increase over [03:06:59] previous years, which I think probably [03:07:01] speaks to the work that, Steve, you've [03:07:03] done to build up our capacity to [03:07:07] institute all these capital programs and [03:07:10] the kind of capacity we need internally [03:07:13] over the next 10 years to achieve what [03:07:16] we've set forth to achieve in our [03:07:18] capital improvement plan. So great job [03:07:20] there. There wasn't [03:07:24] big red flags for me in 2024, [03:07:27] but this is coming on the cusp of our [03:07:31] budgeting season for 2026 and in the [03:07:33] middle of a spend year for 2025 and [03:07:37] significant flashing lights in [03:07:40] the macroeconomic indicators that will [03:07:42] determine our fate. [03:07:46] And so we are going to have a very, I [03:07:48] think I said this two meetings ago. [03:07:49] We're going to have a very challenging [03:07:50] budgeting season. And my [03:07:54] advice is going to be that we are very [03:07:57] much on the side of caution, that we [03:08:00] take a kind of spendthrift approach, [03:08:03] knowing that if we need to rejigger [03:08:07] to be more aggressive, that's easier to [03:08:10] do than having to cut capacity in the [03:08:13] face of a tariff war that results [03:08:17] in what our maritime forecasters are now Page 48 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [03:08:20] telling us, 25, 27, 30% decrease [03:08:24] in, in cargo traffic over the next three [03:08:26] months. And that's assuming things don't [03:08:29] get worse. So which is I think more [03:08:33] likely than, than things getting better [03:08:34] over the next 90 days. So, [03:08:38] you know, that's the maritime side, [03:08:41] aviation side is also facing its own [03:08:43] headwinds. I mean, the earnings report [03:08:46] came out from Delta and they have cut [03:08:48] their earnings forecast in half. [03:08:53] We should take that very seriously about [03:08:55] how we're planning for aviation [03:08:57] forecasting as well and looking at our [03:09:00] other key partners in that space too. [03:09:02] So absorbing this as we approach June [03:09:06] and when we really get into our [03:09:08] budgeting season in earnest. So thank [03:09:11] you, Commissioner Felleman. [03:09:17] Excuse me. I'd like to just build on [03:09:19] what Commissioner Cho was saying. And I [03:09:22] think it's a terminology problem, [03:09:24] especially as we change over [03:09:27] eviscerating all the revenue out of the [03:09:29] program. I mean, economic development, [03:09:32] right. Means like the definition of [03:09:34] port. And so if the, if the economy. [03:09:38] Just mentioning for the record that [03:09:39] Commissioner Calkins has exited the [03:09:41] meeting, it just seems bad optics for [03:09:46] the fundamental role for a port would be [03:09:49] running at a deficit. But you point out [03:09:52] that these are really community [03:09:54] development projects. Should not that be [03:09:57] the name of this program? I mean, if we [03:10:00] call it what it does, it seems like you [03:10:03] would not you don't expect a community [03:10:05] development project to generate money, [03:10:07] but you'd expect expect an economic [03:10:08] development program to do so. Thank you [03:10:11] for that. Good point. Okay, please [03:10:13] continue with the presentation. Well, [03:10:14] actually, executive Metruck seems to be [03:10:16] disgruntled. Well, we can, we can. [03:10:18] Commissioner, I understand completely [03:10:20] that point of how to, how to display [03:10:22] that and how to talk about that. But I [03:10:23] think economic development is a develop, [03:10:26] it is a program on that. So it is. [03:10:28] We'll look at that. I hear what the [03:10:30] commissioners are saying. Maybe it's [03:10:32] community and economic development. [03:10:34] We'll think about that, how to display [03:10:35] that. But I got the, there's a [03:10:38] disconnect that I think we share on the [03:10:40] podium. Thank you. Please continue. So I [03:10:43] think we are done before the PowerPoint [03:10:47] and then the rest is all in the [03:10:48] appendix. So just for your information, [03:10:52] we're not going to do this. Other [03:10:53] slides. Oh, wonderful. [03:10:56] Please continue with your last question, [03:10:58] Madam President. We can go through those Page 49 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [03:10:59] if you'd like. The other, oh, [03:11:02] 78 pages worth of appendices. Yes, from [03:11:05] the top, please. But commissioners, do [03:11:08] you have any follow up questions at this [03:11:09] point in time? Oh, my goodness gracious. [03:11:12] Well, seeing none. Thank you so much for [03:11:14] that report. It is incredibly robust [03:11:16] with additional information available in [03:11:18] the appendices. If anybody would like to [03:11:19] take a look at that. Yes. Commissioner [03:11:22] Felleman. So we do do a KPI [03:11:26] roll up, don't we? I thought it's at [03:11:28] this point in time when once you've [03:11:30] gotten the annuals together. [03:11:34] So is this a separate presentation? We [03:11:36] do it is. Or this because this, the [03:11:38] numbers are all there now. Right. So [03:11:40] it's just, you have to go back and what [03:11:41] were the, what were the executives goals [03:11:44] versus these numbers? So when does that [03:11:48] roll? [03:11:52] Well, I think we talked about that [03:11:53] before as we rolled up the KPIs in the, [03:11:55] in the initial budget meeting. So I have [03:11:58] to check whether there's another final [03:12:00] update for the rest of the fiscal year. [03:12:02] So I did want to mention that the reason [03:12:04] why we're getting this presentation [03:12:05] today is because we requested it as an [03:12:07] outcome of our immediate previous [03:12:09] meeting where we have questions about [03:12:10] the implications of the changing [03:12:12] landscape for predominantly our capital [03:12:15] improvement project. So this is just a [03:12:18] very narrow 78 page [03:12:21] look ahead to preface, [03:12:24] I think budget season as we're moving [03:12:27] into those I think more in depth [03:12:28] deliberations. And so we can expect more [03:12:31] of this to unfold in public comment in [03:12:34] public forum as well. I understand that. [03:12:36] But this is retrospective, right? [03:12:39] Yeah, this is looking back. So my [03:12:41] understanding was that we couldn't [03:12:44] really see how we measured up against [03:12:46] our goals until we had this point in [03:12:50] time. Right. So that's what I just [03:12:51] recalled when I asked that question at [03:12:53] the end of the year. We said, well, we [03:12:55] don't have the numbers yet. So isn't [03:12:58] this the Time when some, some level of, [03:13:01] you know, I guess we can, we have the [03:13:03] numbers in terms of how we performed [03:13:05] above and below budget. That's, that's [03:13:08] the variance is that's what the budget [03:13:10] shows. But I'm just wondering in terms [03:13:12] of how does it show regarding big rocks, [03:13:15] little rocks. Well, and we do have a lot [03:13:16] of the KPIs in the written report. [03:13:18] Correct me if I'm wrong, a lot of [03:13:20] specific measures are in there. And [03:13:22] there's also additional reporting on the [03:13:24] century agenda KPIs that are parts of Page 50 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [03:13:26] separate briefings during the year with [03:13:27] the commission progress against those [03:13:29] goals. We actually have sent those [03:13:30] along. The KPIs. We have sent those [03:13:33] along. Okay, so but as of now that we [03:13:35] have the complete year, we can. Is that [03:13:38] not. I'm just saying I know we set the [03:13:42] goals. I just thought this is when we [03:13:43] can measure how we did against the [03:13:46] goals. And I don't know how you could [03:13:48] have done it beforehand. Well, they're [03:13:51] not all monetary. The goals are the [03:13:53] programs that we accomplish those are [03:13:55] more readily as Dan, you know, [03:13:58] pointed out. This was a little bit later [03:14:01] because of the cyber attack, but we have [03:14:04] completed those and I can resend those. [03:14:06] We did send how we did on the, on the, [03:14:09] on how our performance was against that. [03:14:12] Okay, all right, maybe this was a [03:14:15] different expectation, but that's fine. [03:14:16] I mean certainly we have non monetary [03:14:18] goals for sure and. Yeah, but that's why [03:14:20] I asked that question in terms of. So [03:14:22] the number that we. We spent more money [03:14:25] on construction than the budget. [03:14:28] Right. But the fact of the matter is we [03:14:30] built more. So to me that progress. [03:14:33] Yeah. It's hard to interpret the budget. [03:14:36] Right. For what it's worth. [03:14:39] All right, thank you very much for the [03:14:40] presentation. That brings us to the next [03:14:43] stage of our agenda, [03:14:46] which is any closing comments or [03:14:50] motions or committee referrals from my [03:14:53] colleagues. Anything from you, [03:14:56] Executive Director Metro, if you want to [03:14:59] have aye. do. Let's start with [03:15:00] Commissioner Felleman. I would be [03:15:02] remiss if I did not address Earth Day [03:15:05] and I would call this Scorched Earth [03:15:08] Day. And this is while [03:15:11] I'm very encouraged by the environmental [03:15:13] programs that the board continues to [03:15:15] profess and progress on as [03:15:19] we described today and otherwise. I mean [03:15:21] we have clearly efforts to declaw the [03:15:25] esa, to gut the National Marine [03:15:27] Fisheries Service, to discriminate [03:15:30] against environmental justice programs, [03:15:32] and to now even remove the Nonprofit [03:15:34] status of NGOs that are [03:15:38] couldn't even raise money without the [03:15:42] ability to get donors to give tax [03:15:44] donations. So I just find that [03:15:48] to be important. The irony of this [03:15:50] should not be lost. I like to be ironic, [03:15:53] but this isn't funny. And so while [03:15:57] you mentioned headwinds, this is beyond [03:16:00] headwinds. This is unprecedented attack [03:16:03] forward thinking, but also underscores [03:16:05] the importance of what we do locally. [03:16:09] And I'm encouraged that the port is Page 51 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [03:16:12] determined to head into these headwinds [03:16:15] with force. And so I'm very happy about [03:16:17] that. I also did notice on the way in [03:16:19] here, there was a container ship, CMA [03:16:22] CGM's Point Norte. [03:16:26] And it had big sign on the side of it. [03:16:27] It's like LNG powered. I'd never seen a [03:16:30] ship in our harbor that said that. And [03:16:33] so I texted, I saw its last portocol was [03:16:37] Vancouver. And I inquired with the [03:16:40] Seaport Alliance. So where did it [03:16:42] bunker? And then. So nobody's quite sure [03:16:45] quite yet. But it does underscore as [03:16:47] well. LNG may not be the final fuel of [03:16:49] the future. It does point out that new [03:16:51] ships are coming to town. We need to [03:16:53] have that infrastructure to be able to [03:16:54] bunker them. And I'm glad that we did [03:16:56] that report today that talks to the fact [03:16:59] that we are in fact thinking about it. [03:17:02] And then I want to conclude by [03:17:06] JC's comments about the START committee [03:17:08] being closed. When the Port of Seattle [03:17:11] Commission has a strategic planning [03:17:15] meeting, it's open to the public. [03:17:21] This is a public port. We have nothing [03:17:23] to hide. The START Committee is a public [03:17:26] entity to be able to give the [03:17:29] communities that are concerned or [03:17:31] interested in airport operations the [03:17:33] opportunity to see what's going on. The [03:17:37] planning for the future of this program [03:17:40] for the next year's activity is [03:17:42] something the public should have every [03:17:44] bit visibility on, if not [03:17:47] comment towards. So I am deeply [03:17:50] concerned. I mean, I understand that it [03:17:52] probably isn't allowed on these [03:17:53] technical subcommittees. They can't be [03:17:56] in the NOISE committee, which drives me [03:17:58] nuts, that they should be able to at [03:17:59] least observe. But the fact that they [03:18:02] couldn't be in a planning committee for [03:18:04] the following year's program development [03:18:08] I find to be contrary to the port's [03:18:10] mission. And I would like to see what [03:18:13] the Port of Seattle is saying. We're not [03:18:15] the only member of the STAR Committee. [03:18:16] I understand, but the reason why it [03:18:18] exists is because of us. And I think we [03:18:22] should be able to insist that the public [03:18:24] should at least be able to observe, if [03:18:26] not provide public comment. So thank [03:18:29] you, jc, for bringing it to our [03:18:30] attention. Thank you very much, [03:18:32] Commissioner Felleman and Executive [03:18:33] Director Metruck. [03:18:37] Thanks, Commissioners. I do want to [03:18:38] comment on something that Commissioner [03:18:40] Cochin said we're going to look at [03:18:41] multiple scenarios that could play out [03:18:43] in the development of our budget for 26 [03:18:46] as we come forward in planning on that, Page 52 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Transcript of Regular Meeting on Apr 22, 2025 12:00pm Port of Seattle. [03:18:48] because we have to look at potential [03:18:50] impacts all across the board. So I just [03:18:51] wanted to say that for. To all the [03:18:52] commissioners. Thank you, sir. Thank [03:18:54] you. All right. Hearing no further [03:18:56] comments and having no further business, [03:18:57] Commissioners, if there is no objection, [03:18:59] the time is 3:21 and we are adjourned. END OF TRANSCRIPT Page 53 of 53 This transcript is not an official record. It was generated using speech-to-text technology and may contain inaccuracies or misspellings. Powered by TCPDF (www.tcpdf.org)