Sustainability, City Light, Arts and Culture Committee 7/19/2024

Call to Order GOOD MORNING AND HAPPY FRIDAY. THE JULY 19 MEETING OF THE SUSTAINABILITY, CITY LIGHT, ARTS AND CULTURE WILL COME TO ORDER. IT IS NOW 9:30 4 AM. I'M TANYA WOO, CHAIR OF THE COMMITTEE. WILL THE COMMITTEE CLICK PLEASE CALL THE ROLL? >> COUNCILMEMBER SAKA? >> HERE. >> COUNCILMEMBER TRAVIS -- STRAUSS? >> PRESENT. >> CHAIR WOO? >> PRESENT. >> VICE CHAIR MOORE WILL BE JOINING SHORTLY. THEY WERE CURRENTLY THREE MEMBERS PRESENT. COUNCILMEMBER MORALES HAS BEEN EXCUSED TODAY AND WHEN MOORE JOINS US, I WILL ANNOUNCE IT . IF THERE WAS NO OBJECTION, THE AGENDA WILL BE ADOPTED. HEARING NO OBJECTION, THE AGENDA IS ADOPTED. YOU WILL NOW Public Comment OPEN THE HYBRID PUBLIC COMMENT PERIOD. PUBLIC COMMENTS SHOULD RELATE TO ITEMS ON TODAY'S AGENDA AND WITHIN THE PURVIEW OF THIS COMMITTEE. CLERK, HOW MANY SPEAKERS ARE SIGNED UP TODAY? >> CURRENTLY WE HAVE ZERO IN-PERSON SPEAKERS SIGNED UP AND ZERO REMOTE SPEAKERS. >> THANK YOU. AS A REMINDER, MEMBERS OF THE PUBLIC ARE ENCOURAGED TO EITHER SUBMIT WRITTEN PUBLIC COMMENT ON THE SIGN-UP CARDS AVAILABLE ON THE PODIUM OR EMAIL THE COUNCIL. >> WE WILL MOVE ON TO OUR FIRST Arts/Economic Round-Table ITEM OF BUSINESS. WILL THE CLERK PLEASE READ THE FIRST ITEM INTO THE RECORD? >> AGENDA ITEM 1, ARTS AND CULTURE ROUNDTABLE FOR BRIEFING AND DISCUSSION. >> THANK YOU. WILL THE ROUNDTABLE PRESENTERS PLEASE COME TO THE COMMITTEE TABLE? ONCE AGAIN, WHEN READY, PLEASE INTRODUCE YOURSELVES. WHILE WE WAIT, I WANT TO GIVE A SPECIAL THANK YOU TO KING COUNCIL -- KING COUNTY COUNCILMEMBER CLAUDIA BALDUCCI. THANK YOU FOR ALL YOU HAVE DONE AND THANK YOU FOR BEING HERE TO HAVE THIS DISCUSSION WITH US. >> I HAVE A LITTLE SCRATCHY THROAT. >> GOOD MORNING! >> LET ME PULL UP MY NOTES. I AM THRILLED TO BE HERE WITH ALL OF YOU TODAY. I AM MANNY CAWALING, THE EXECUTIVE DIRECTOR FOR INSPIRE WASHINGTON. WE ARE YOUR CULTURAL ADVOCATES FOR INNOVATION. WE BELIEVE IN THE UPLIFTING POWER OF SCIENCE, HERITAGE, AND THE ARTS. TODAY, I AM EXCITED TO BRIEF YOU ON SOMETHING THAT IS SO CLOSE TO MY HEART, THE DOORS OPEN PROGRAM OF KING COUNTY. BEFORE WE GET STARTED, I WANT TO GIVE YOU CONTEXT OF HOW THIS CAME TO BE. IT IS IMPORTANT FOR ALL OF YOU AS AUTHORIZER'S TO UNDERSTAND THE LONG HISTORY THAT PRECEDED THE PASSAGE LAST DECEMBER SO YOU UNDERSTAND WHAT THE INTENT WAS. DID THIS HAPPEN AND, UNDERSTAND, THERE IS A LONG ROAD WITH A LOT OF IMPRESSIONS AND CHAMPIONS AND PEOPLE IN VISION -- AND VISION. LET'S GO BACK TO 2003. IN 2003, SEATTLE WAS A VERY DIFFERENT PLACE. AS WE ALL LOOK FAVORABLY BACK TO THAT TIME IN SEATTLE, WE WERE BOOMING. McCALL HALL WAS JUST BUILT. WE HAD REALLY LEANED INTO CULTURAL INFRASTRUCTURE. OF COURSE, EVERYWHERE YOU WENT, IT WAS VIBRANT. I THINK WE THROW THAT WORD AROUND A LOT BUT WHAT VIBRANCY REALLY MEANS IS PEOPLE, OUT AND ABOUT, CONNECTING, LAUGHING, ENJOYING THINGS, EXPERIENCING THINGS TOGETHER. I WANT YOU TO IMAGINE HOW AUTHORIZER'S, ELECTED OFFICIALS LIKE YOU WANTED TO DRIVE MORE OF THAT IN SEATTLE AND THROUGHOUT KING COUNTY. WHERE WAS I AT THE TIME? I WAS FINISHING UP A RESIDENCY AT THE OLD RAYNOR HOUSING COMMUNITY. FOR FIVE YEARS, I WORKED WITH CAMBODIAN AMERICAN CHILDREN BECAUSE THEIR REFUGEE PARENTS WANTED TO MAKE SURE THE CHILDREN UNDERSTOOD THE EXPERIENCES AND HOW THEY CAME TO AMERICA. WE EXPLORE THAT THROUGH ARTS AND CULTURE. THAT IS MY WAY OF SAYING ALL ACROSS THE CITY, THEY WERE PASSIONATE ARTS PEOPLE LEANING INTO THE COMMUNITY BUT THERE WAS MORE THAT THEY WANTED TO DO. THEREFORE, THE PUGET SOUND REGIONAL COUNCIL DID A TOUR AND ACTUALLY, CLAUDIA WAS ON THAT TOUR , TO COLORADO. THEY WANTED TO LOOK AT ALL OF THE THINGS THAT WERE DRIVING POSTERITY IN OTHER COMMUNITIES AND WHAT THEY SAW IN DENVER, COLORADO WAS A TAXING AUTHORITY WHICH WAS DRIVING AN INCREDIBLE AMOUNT OF SUPPORT TO CULTURAL ORGANIZATIONS FOR THE PURPOSE OF DRIVING THAT TYPE OF VIBRANCY, THAT CONNECTION, THAT JOY WITHIN THEIR COMMUNITY. AND, SO BEGAN A LONG ROAD OF US TRYING TO FIGURE OUT, HOW DO WE BRING THAT TO SEATTLE? HOW DO WE REALLY REACH OUT AND SERVE COMMUNITIES THAT ARE NOT EXPERIENCING THE JOY OF SCIENCE, HERITAGE, AND THE ARTS BECAUSE OF THE COST OR ISSUES AROUND TRANSPORTATION OR THE LACK OF OUTREACH. JUST THE LACK OF RESOURCES. SO, EVENTUALLY, THAT IDEA PLAYED ITSELF OUT WITHIN STATE GOVERNMENT AND THE STATE LEGISLATURE CREATED THE CULTURAL ACCESS PROGRAM IN 2015. WE HAVE MADE AN ATTEMPT TO AUTHORIZE IT AND ADOPT IT . IN 2017, WE WERE ON THE BALLOT, ACCESS FOR ALL. WE LOST BY A MERE BUT SIGNIFICANT ENOUGH 4500 VOTES AND WE NEVER LOST SIGHT OF WANTING TO DO THIS RIGHT AND REALLY CREATE THE PROGRAM THAT WOULD SERVE THE VIBRANCY IN SEATTLE, THAT WOULD CONNECT ARTS AND CULTURE AND TO RECOGNIZE THAT IN BLACK DIAMOND, IN MAPLE VALLEY, IN BELLEVUE, IN REDMAN AND ON AND ON. THERE WERE COMMUNITIES THAT DID NOT HAVE THE SAME LEVEL OF ACCESS. WE ARE SO THRILLED THAT DOORS OPEN WITH LAST YEAR ON DECEMBER 5 WITH UNANIMOUS SUPPORT AS KING COUNTY COUNCIL. THIS IS NOW THE THIRD CULTURAL ACCESS PROGRAM THAT WE HAVE IN TACOMA AND WE HAVE A PROGRAM IN OLYMPIA. TODAY, WE WILL TALK ABOUT WHAT HAPPENED, WHY THIS WAS CREATED AND ALSO, WHAT WE IMAGINED THE TANGIBLE BENEFITS WILL BE FOR OUR COMMUNITIES IN REGARDS TO JOBS, IN REGARDS TO QUALITY OF THE JOB. AGAIN, THAT VIBRANCY THAT I THINK WE ARE ALL CRAVING MORE AND MORE IN SEATTLE AND THROUGHOUT KING COUNTY. >> LET'S GET STARTED WITH THE FIRST SLIDE. >> THANK YOU, MANNY. GOOD MORNING, CHAIR WOO, COUNCIL MEMBERS. MY JOB IN THIS PRESENTATION IS TO SET UP THE CONVERSATION. RATHER THAN A MONOLOGUE FOR ME, WHAT I WILL DO IS GO THROUGH SLIDES AND INVITE COLOR COMMON TREAT FROM THE EXPERTS AT THE TABLE SO WE CAN HAVE MORE OF A DIALOGUE AND LESS OF A MONOLOGUE. AS YOU BEAR WITH ME, I WILL BE THE OPERATOR OF THE SLIDES. NOTHING IS HAPPENING. >> OKAY. SLIDE NUMBER ONE. WE ARE JUST GOING TO READ OUT THE CONTENT AND INVITE ANY COMMENTS. THE LEGISLATION AND FUNDING DISTRIBUTION MODEL FOR DOORS OPEN. THIS IS JUST A GENERAL OVERVIEW IN DECEMBER 2003. KING COUNTY COUNCIL ADOPTED THE CULTURAL LEGISLATION WITH UNANIMOUS SUPPORT. THE DOORS OPEN ORDINANCE CREATES FUNDING TO THAT ACCOUNT IS UP HERITAGE SCIENCE AND HISTORIC PRESERVATION, NONPROFIT THROUGH A .1% SALES TAX. THE ORGANIZATION THAT IS DESIGNATED TO DISTRIBUTE THESE FUNDS IS FOR CULTURE AND A PDA IN THE COUNTY. WHEN IT IS ESTABLISHED, IT IS ANTICIPATED TO BE APPROXIMATELY 100 MILLION A YEAR WILL BE AVAILABLE. THERE IS A CAVEAT. IT IS CURRENTLY ESTABLISHED. WE CAN HEAR MORE ABOUT THIS. ANOTHER EFFECT THAT I THINK YOU WILL FIND INTERESTING -- I MENTIONED THIS AT THE LAST TABLE. A MINIMUM OF 25% OF ALL DOORS OPEN FUNDING WILL GO TO ORGANIZATIONS OUTSIDE OF THE CITY OF SEATTLE AND I INVITE YOU BOTH TO TELL US WHY. THE PROGRAM IS DESIGNED TO BE A COUNTYWIDE PROGRAM SO THEY HISTORICALLY UNDERSERVED, CONSCIOUSLY UNDERSTANDING THAT SEATTLE HAS RESOURCES. OTHER KINDS OF THE COUNTY DO NOT. HAVING SAID THAT, WHO WOULD LIKE TO TAKE IT OVER? >> SURE. >> DO I HAVE TO TURN THIS ON OR DOES IT JUST WORK? >> I CAN HEAR YOU. >> THANK YOU. I DON'T SEE ANY LIGHTS. I AM FEELING FOR ALL OF THE PEOPLE WHO STRUGGLE WITH THE MICROPHONES. >> THANK YOU FOR THE TIME TO SPEAK TO DAY. I HAVE FOUR POINTS I WANT TO TOUCH ON REALLY BRIEFLY. WE DO WALK OVER THE VOTE AS UNANIMOUS WITHOUT SOMETIMES PAUSING TO POINT OUT THAT WE WENT MANY YEARS TO GET WITH UNANIMOUS VOTER. THE FIRST TIME WE DID THIS, IT WAS VERY -- I WANT TO CALL OUT MY FORMER COLLEAGUES ON THE COUNCIL, WHO HAVE BEEN CHAMPIONS OF THIS WORK ALL ALONG. I HAVE ALSO BEEN FIGHTING FOR IT , NOT QUITE SINCE THE DENVER TRIP ALMOST 2 DECADES AGO BUT FOR A VERY LONG TIME AND IT TOOK A LOT TO GET TO WHERE WE ARE. PART OF THAT WAS DUE TO WHAT IS REFERRED TO AS DESIGNED TO BE A COUNTYWIDE PROGRAM SERVING HISTORICALLY UNDERSERVED AREAS. THE INITIAL STATE STATUTE. THEY GAVE VERY DETAILED INSTRUCTIONS ON HOW THE MONEY SHOULD BE DISTRIBUTED AND USED AND THERE WAS A STRONG FEELING AMONG SOME OF THE COUNCIL MEMBERS THAT IT WAS TOO INEQUITABLE. IT TOOK REALLY GREAT CARE AND DID NOT GO IN SMALLER, NEWER CULTURAL ORGANIZATIONS FROM HISTORICALLY UNDERSERVED AREAS. ONE OF THE THINGS THAT WE DID IS WE WENT TO OLYMPIA AND LOBBIED VERY HARD. THAT ALLOWED US TO BUILD OUR OWN PROGRAM WHICH YOU WILL HEAR MORE ABOUT THAT TODAY. I WANTED TO HIT ON THOSE TWO ENDPOINTS. SCIENCE IS NEW. THIS PROGRAM WILL BE 10 TIMES THE SIZE OF WHAT WE HAVE DONE IN THE PAST BUT SOMEWAYS, NOT THAT DIFFERENT. THERE IS A WHOLE LOT MORE OF IT. SCIENCE IS COMPLETELY BRAND-NEW AND THERE WILL BE A NEW AREA IN INVESTMENT. THEN, FINALLY, ABOUT THE IDEA OF THE COUNCIL AT KING COUNTY, THE ONE WHO PUT IN THAT 25%. THE PURPOSE OF THAT WAS -- WE HAVE LONG HAD DISCUSSIONS ABOUT, HOW DO WE LIFT UP NEW AND EMERGING CULTURAL CENTERS? IF YOU ARE IN AUBURN, YOU WANT TO HAVE CULTURAL ACTIVITIES AND CULTURAL CENTERS IN YOUR DOWNTOWN THAT YOU HAVE BEEN WORKING SO HARD TO GROW . PLACES FOR YOUR RESIDENTS TO COME AND HAVE A NIGHT OUT AND ENJOY CULTURE IN THEIR CITY BUT ALSO, PEOPLE TO COME INTO OFFICE. THE IDEA OF THE PROGRAM -- ONE THING THAT THE COUNCIL WANTED TO MAKE SURE WE CONCENTRATED ON IS HELPING TO SUPPORT AREAS THAT NEED TO PASS IT TO ENSURE THEY HAVE ACCESS TO CULTURAL EXPERIENCES. I REPRESENT THE EASTERN COUNTY AND I WILL TELL YOU THAT BELLEVUE HAS HAD A VISION OF BEING A SUB REGIONAL HUB OF ARTS AND CULTURE FOR A VERY LONG TIME AND REALLY STRUGGLED TO LAUNCH. THAT CITY, UNLIKE SEATTLE, HAS NOT PUT A TON OF MONEY INTO THE ARTS AND THIS WILL HOPEFULLY LEVERAGE THIS 25% INVESTMENT IN THE COUNTY. OUR HOPES AND DREAMS IS THAT IT WILL LEVERAGE LOCAL JURISDICTIONS TO ALSO INTRODUCE SO THAT TOGETHER, WE LIFT THOSE SUB REGIONAL AREAS AS WELL. I HOPE THAT ANSWERS YOUR QUESTION. >> YES, THANK YOU. THIS CAME UP IN OUR LAST CONVERSATION WHICH IS, AS WE ARE FOCUSING ON ACTIVATING DOWNTOWN, OTHERS ARE FOCUSING ON ACTIVATING DOWNTOWN THROUGH ARTS AND CULTURE. THERE IS SOMETHING -- WE CAN TALK ABOUT THAT LATER BUT IT IS SOMETHING THAT WOULD BE INTERESTING TO ACKNOWLEDGE. >> OKAY. NEXT SLIDE. WE LOOKED AT ELIGIBILITY. WHO IS ELIGIBILITY -- ELIGIBLE FOR THESE RESOURCES? AS I MENTIONED, 501(C)(3) ORGANIZATIONS ARE ELIGIBLE AND WHOSE PRIMARY PURPOSE IS SCIENCE, TECHNOLOGY, VISUAL ARTS, PERFORMING ARTS, INCLUDING ZOOLOGY, BOTANY, ANTHROPOLOGY, HERITAGE, OR NATURAL HISTORY. THAT IS THE BIG SCOPE. ALSO, FISCALLY SPONSORED NONDESIGNATED 501(C)(3) GROUPS. THESE CAN GO TO FISCAL SPONSORS SO THAT THEY CAN GET ACCESS TO THESE RESOURCES. POTENTIALLY WE HAVE A BIG COURT. DOES ANYBODY WANT TO ADD TO THIS? >> SURE. I WOULD LOVE TO. I LOOK AT THIS LEGISLATION ALL THE TIME AND, OF COURSE, IT IS SPECIFIC TO ME. WHEN I LOOK AT THIS LIST, I KNOW WE ARE TALKING ABOUT THE PACIFIC SCIENCE CENTER. WE ARE TALKING ABOUT ALL OF OUR WONDERFUL MUSEUMS LIKE THE HENRY ART GALLERY. THE BROAD ARRAY OF PERFORMING ARTS THAT, YES, IT IS SIGNIFICANT TO DOWNTOWN BUT IT IS ALSO SIGNIFICANT TO ALL OF THE NEIGHBORHOODS THAT YOU REPRESENT. IT IS WHAT HAPPENS IN THE THEATER OFF JACKSON. IT IS WHAT HAPPENS IN ARTS WEST AND WEST SEATTLE, JUST TO NAME A FEW. OF COURSE, IT IS THE SCIENCE THAT PEOPLE USUALLY HAVE -- DO THOSE QUESTIONS MATTER TO OUR SEATTLE COMMUNITY? ABSOLUTELY THEY DO. MILLIONS OF PEOPLE VISIT THE WOODLAND PARK ZOO EVERY YEAR. IN THIS JOB, I HAVE HAD THE OPPORTUNITY TO TOUR OUR BEAUTIFUL GARDEN, THE JAPANESE GARDEN IN THE ARBORETUM. THE ARBORETUM ITSELF -- DID YOU KNOW THAT THE SEATTLE PARK ARBORETUM HAS ONE OF THE MOST DIVERSE AUDIENCES BECAUSE, OF COURSE, THE SPECIMEN COLLECTION THAT COMES FROM ACROSS THE WORLD BRINGS PEOPLE INTO THE GARDEN TO CONNECT WITH SOMETHING THAT IS FAMILIAR TO THEM. OF COURSE, THIS IS A LIST BUT THE COLOR IN DETAIL IN THIS, ALL OF THESE ORGANIZATIONS BRING VIBRANCY AND CONNECTION AND, OF COURSE, IF YOU ARE LIKE ME AND YOU TAKE YOUR NEPHEWS AND NIECES TO THE ZOO, IT IS ALWAYS HAMBURGERS AND FRIES. IT IS USUALLY THE BUS. IT IS A LOT OF THINGS. I AM SURPRISED TO HAVE ANY MONEY LEFT. IT IS VIBRANCY AND CONNECTION AND A JOYFUL AFTERNOON THAT WE WILL REMEMBER FOREVER. >> GOING BACK TO OUR CONVERSATION LAST WEEK, MANNY, WE TALKED ABOUT RESIDUAL SPENDING AND HOW NONPROFITS TRIGGER RESIDUAL SPENDING. IF WE REMEMBER BACK TO THAT MAPPING OF WHAT NONPROFITS WERE, THIS IS THE CENTER OF THAT. THE PEOPLE THAT PRODUCE ART. OBVIOUSLY WE ALSO HAVE SCIENCE, TECHNOLOGY, ZOOLOGY AND MUCH MORE. THAT IS THE CULTURE PART . I THINK THAT IS GOOD. I THINK IT IS REALLY POSITIVE THAT WE HAVE FURTHER INVESTMENTS IN THIS SECTOR BECAUSE THEY ARE REALLY STRUGGLING POST-PANDEMIC. ANYTHING ELSE BEFORE I MOVE ON? >> I WOULD LOVE TO ASK, WITH OFFICE OF ARTS, HOW IS THAT SUPPORTING ORGANIZATIONS OR ARTISTS THAT IS FISCALLY RESPONSIBLE? >> IT IS ABOUT ACCESS TO RESOURCES. SOME GROUPS THAT ARE VERY NEW HAVE NOT FORMALLY ORGANIZED . OUR OFFICE DOES NOT JUST WORK WITH NONPROFITS, WE WORK WITH FOLKS THAT ARE FOR PROFIT BUT OTHER FOLKS DON'T HAVE ANY ORGANIZATION STRUCTURE AND THEREFORE, BEING FISCALLY SPONSORED ALLOWS THEM TO TAP INTO RESOURCES INTO PROJECTS WITHOUT GOING THROUGH THE LEGAL PROCESS OF ORGANIZING. >> ABSOLUTELY. THANK YOU. >> FOR CULTURE, THEY START TO PLAN OUT THE IMPLEMENTATION OF THIS NEW RESOURCE. IT HAS REALLY SERVED THE LANDSCAPE AROUND WHICH ORGANIZATIONS ARE OUT THERE AND THEY HAVE DONE ESTIMATES ABOUT THE NUMBER OF ORGANIZATIONS THEY THINK WILL APPLY AND IT IS OVER 120 INHERITED AND PRESERVATION, 500 AND ARTS AND CULTURE AND ABOUT 80 IN THE SCIENCES. THIS IS A BROAD-BASED PROGRAM THAT WILL SUPPORT HUNDREDS AND HUNDREDS OF ORGANIZATIONS AND PROGRAMS. >> THANK YOU. MOVING ONTO THE NEXT SLIDE, LET'S TALK ABOUT WHO IS NOT ELIGIBLE. IT IS GOOD FOR US TO KNOW THIS. I AM JUST GOING TO READ OFF HERE. INDIVIDUAL ARTISTS. THEY CAN WORK THROUGH 501(C)(3) BUT THEY, THEMSELVES, CANNOT DIRECTLY APPLY. INDEPENDENT SCIENCE WORKERS, CULTURAL WORKERS AND HERITAGE PROFESSIONALS, THE PEOPLE WHO ARE WORKING IN THESE INSTITUTIONS CANNOT APPLY. AGENCIES OF THE STATE OR ANY OF ITS POLITICAL SUBDIVISIONS, MUNICIPALITIES, ORGANIZATIONS THAT RAISE MONEY FOR REDISTRIBUTION TO MULTIPLE CULTURAL ORGANIZATIONS, RADIO OR TELEVISION BROADCASTING NETWORK OR STATION , CABLE COMMUNICATIONS SYSTEM, INTERNET BASED COMMUNICATIONS VENTURE OR SERVICE, NEWSPAPER OR MAGAZINE. ANY GROUPS WITH ANY CERTAINTY SHOULD KEEP ELIGIBILITY, WHO WANT TO APPLY, SHOULD GO THROUGH FOR CULTURE TO CONFIRM. ANYTHING ANYONE WANTS TO ADD TO THIS PARTICULAR ELIGIBILITY SLIDE? >> AGAIN, I SPENT A LOT OF TIME WITH THE STATE LEGISLATION AND THIS IS THE ASPECT OF THE PROGRAM THAT CREATES THE MOST HEARTBURN FOR ME. WHY? THERE IS A TREMENDOUS AMOUNT OF IMPORTANT WORK THAT HAPPENS WITHIN SOME OF THESE DEFINITIONS. FOR EXAMPLE, INTERNET-BASED SERVICES, THERE IS A WONDERFUL ORGANIZATION THAT TELLS THE STORY AND DOCUMENT THE STORIES OF JAPANESE AMERICANS AND THEY HAVE DONE ORAL HISTORY INTERVIEWS AND THEY PUT THEM ONLINE. IT MAKES IT THE MOST ACCESSIBLE WAY FOR COMMUNITIES TO HEAR THESE STORIES. WE HAVE HISTORY LINKS. MY DAD IS SUCH A SEATTLE HISTORY BUFF. HE IS ALWAYS SENDING ME LINKS TO SHOW ME WHAT A BUILDING LOOKED LIKE WHEN HE WAS A KID. THESE ARE IMPORTANT. THESE ARE CULTURAL. THE STATE LEGISLATURE PROBABLY DID NOT HAVE A GOOD UNDERSTANDING OF THE FULL BREATH OF CREATIVITY AND CULTURAL PROGRAMS ARE AND I KNOW THAT 4CULTURE , WITH THEIR ADMISSION -- I'M SORRY, WITH THEIR LODGING TAX, WILL DO THEIR BEST TO MAKE SURE -- THIS IS THE WAY TO MAKE SURE SEATTLE SUPPORTS, FOR THESE TYPES OF THINGS, ARE ALSO REALLY IMPORTANT BECAUSE THE SUPPORT IS NECESSARY. >> WE DO SUPPORT HISTORY LINKS AS WELL AS INDIVIDUALS. >> THANK YOU FOR THE CLARIFICATION AND THE EXAMPLES. WE PUT ON A PHYSICAL EXHIBIT FROM THE WORK THAT IS BASED ON THE INTERNET AND TRAVEL TO EITHER SCHOOLS OR HAVING IT IN A FIXED LOCATION WHETHER IT IS AUBURN, BELLEVUE OR BALLARD. WOULD THEY THEN BE ABLE TO QUALIFY? THEY ARE NOT JUST INTERNET-BASED. >> THAT IS A DETAIL -- I AM NOT THE PERSON WHO WILL BE GIVING UP THE MONEY. IT IS THE DETAILED TO WORK OUT POSSIBLY. I KNOW WE HAVE THESE QUESTIONS WHEN WE WERE ON THE BALLOT IN 2017, THE SAME THING ABOUT K XP. THEY ARE A RADIO STATION. THEY DO CONCERTS AS WELL. THERE IS A LOT OF EXAMPLES OF BAD. I THINK THAT CAN BE WORKED OUT BUT THE POINT IS, MULTIPLE POTS OF MONEY, MULTIPLE INVESTORS THAT CARE ABOUT THE SAME THING AND CREATE THE FLEXIBILITY TO ENSURE THAT EACH VALUABLE PROGRAM IS SUPPORTED AND THEREFORE, THE COMMUNITIES THAT THEY SERVE ARE NOT LEFT OUT. >> TO BE CLEAR, WE DO NOT HAVE THOSE RESTRICTIONS. WE DO FUND K XP, HISTORY LINKS. WE DON'T HAVE THE BARRIER OF VIRTUAL VERSUS IN-PERSON. WE, AS WELL AS WORKING WITH INDIVIDUALS FOR PROFIT ORGANIZATIONS, WE HAVE A BROADER SCOPE THAN THIS PARTICULAR LIST. >> I AM SO GLAD. >> I THINK WE COMPLIMENT THE FUNDING THAT WAY. >> BRIEFLY , THERE ARE OBVIOUS WAYS THAT A PARTNERSHIP CAN COME TOGETHER AROUND A PARTICULAR PROGRAM OR PROJECT WITH POTENTIALLY ELIGIBLE MEMBERS AND INELIGIBLE MEMBERS AND FIND A WAY TO PROVIDE FUNDING TO DOORS OPEN. I WOULD SAY , A COUPLE OF YEARS AGO, AN ARTIST CREATED A WITH ART ON IT WITH PICTURES OF JAPANESE AMERICANS, FARMING FAMILY MEMBERS FROM BELLEVUE AND AS PART OF THAT, THERE WAS AN AR COMPONENT WHERE YOU COULD POINT YOUR PHONE AT IT AND THEY WOULD START TALKING AND TELLING THEIR OWN STORIES IN THEIR OWN VOICES. IT WAS INCREDIBLY MOVING. I WILL SEND YOU DETAILS WHEN IT GETS UP AND RUNNING AGAIN. THAT WAS A PARTNERSHIP OF INDIVIDUAL ARTISTS. IF YOU WERE TO PULL TOGETHER A PARTNERSHIP LIKE THAT IN THE FUTURE, THEY COULD APPLY FOR, IN MY VIEW, THEY COULD APPLY FOR FUNDING. I THINK WE CAN GET CREATIVE, AS WE ALWAYS DO. >> I AM SO GLAD YOU BROUGHT UP THAT EXHIBIT BECAUSE IT IS AN OPPORTUNITY. THAT ARTIST WAS REALLY WONDERFUL. IT DID ORIGINATE IN BELLEVUE AND THEN IT WAS INSTALLED FOR QUITE A BIT OF TIME. IT IS IMPORTANT TO UNDERSTAND THE INTERCONNECTEDNESS OF ARTS AND CREATIVITY THAT MOVES THROUGHOUT THE REGION TO ENSURE THAT EVERYONE HAS ACCESS TO GREAT WORK. >> MOVING ALONG, IT IS MORE CONTEXT FOR YOU, AS MENTIONED BY COUNCILMEMBER CLAUDIA BALDUCCI. THERE ARE APPROXIMATELY 700 ORGANIZATIONS WITH COMBINED ANNUAL BUDGETS OF OVER $1 BILLION. SOMETHING TO THINK ABOUT. HERE ARE CURRENTLY THE SIX PROGRAMS AND INITIATIVES. NO CHANGE BUT THERE IS STILL A CONVERSATION AT THE COUNCIL. WE COULD HAVE YOU TALK A LITTLE BIT ABOUT THAT. I WILL JUST GO THROUGH THEM. SUSTAINED SUPPORT. THIS IS GENERAL OPERATING SUPPORT. THIS IS THE BREAD AND BUTTER OF MOST OPERATIONS. FACILITIES, INVESTMENTS AND CAPITAL, PUBLIC SCHOOL, CULTURAL ACCESS. THAT ACCESS PIECE IS REPRESENTED THROUGH CULTURAL EDUCATION PROGRAMMING, OTHER COUNTYWIDE INITIATIVES SUCH AS INVESTMENTS, ADDRESSING THE COMMUNITY. THERE IS A LARGE PROGRAM. THIS IS STARTUP FUNDING FOR NEW AND EMERGING ORGANIZATIONS. IN A WAY, IT WILL STIMULATE MORE ORGANIZATIONS TO APPLY AND THEN PUBLIC FREE ACCESS TO REDUCE AND FREE TICKETS. WHO WANTS TO GO NEXT? >> YOU MENTIONED THE PROCESS FOR ADOPTING THE PLAN. I WILL JUST INSERT THAT HERE. WE ADOPTED THIS FUNDING SOURCE IN DECEMBER 2023 AND WE AGREED -- THIS IS AN AMENDMENT THAT WE BROUGHT FORWARD INTO YEAR ONE FUNDING AND YEAR TWO THROUGH THE END OF THE SIX YEAR LEVEE . YEAR ONE FUNDING IS GOING TO BE ABOUT $48 MILLION IN ONE-TIME CAPITAL AND OPERATING FUNDS. THE GRANT APPLICATION TIMEFRAME IS SUPPOSED TO OPEN IN EARLY AUGUST AND RUN THROUGH SEPTEMBER AND THE GRANTS WILL BE ANNOUNCED BY THE END OF THE YEAR FOR AWARDS TO BE DISTRIBUTED IN EARLY 2025. BECAUSE OF THE WAY WE ADOPTED THE TAX, WE ARE NOT COLLECTING A FULL YEAR WORTH OF REVENUE IN 2024 SO IT IS A LITTLE LOWER AND WE WANTED TO GET THE PROGRAM UP AND RUNNING AND START MOVING. >> WE ARE NOW WORKING ON THE IMPLEMENTATION PLAN THAT WILL MUCH MORE SPECIFICALLY DEFINE HOW THE ANNUAL FUNDS FROM 2025 ON OUR DISTRIBUTED. AND, 4CULTURE HAS BEEN DEVELOPING THAT PLAN WITH THE BOARD. A NUMBER OF COUNCIL MEMBERS ARE MEMBERS OF THAT BOARD AND WE HAVE BEEN FOLLOWING THAT PROCESS CLOSELY. THE COUNTY EXECUTIVE WILL TAKE THAT PLAN AND TRANSMIT IT TO THE COUNCIL, LIKELY IN EARLY AUGUST. THEN , IT HAS TO GO THROUGH TWO COMMITTEES AT THE COUNTY. IT GOES THROUGH MY COMMITTEE AND THEN THE REGIONAL POLICY COMMITTEE WHERE YOU ARE VERY ABLY REPRESENTED BY CHAIR WOO AND COUNCILMEMBER MOORE WITH ALTERNATES COUNCILMEMBER MORALES AND NELSON. THE REGIONAL POLICY WILL HAVE TO STAY. AS A REMINDER, WHAT THAT GIVES UP, THE COUNTY COUNCIL IS REQUIRED TO EITHER ADOPT IT WITHOUT FURTHER CHANGE OR, IF WE MAKE ANY CHANGES, WE HAVE TO GO BACK TO THE REGIONAL POLICY COMMITTEE. YOU WILL BE ABLE TO SIT THERE AND BE REPRESENTED. OUR FINAL ACTION IS SCHEDULED FOR LATER IN THE YEAR, HOPEFULLY TO HAVE THE ORDINANCE TAKE EFFECT BY JANUARY 1, 25 AND THEN GOVERN WHAT HAPPENS THROUGHOUT . THE PROGRAM ITSELF IS LIKELY TO LOOK VERY SIMILAR TO WHAT IS ON-SCREEN. THERE ARE SOME BIG DISCUSSIONS TO BE HAD, INCLUDING THINGS LIKE , WHAT ARE THE POSSIBLE MAXIMUM SIZES OF THE GRANT? THERE HAS BEEN A LOT OF DISCUSSION ABOUT BIG PROGRAMS. SOME OF THE MAJOR INSTITUTION MEANS CAPITAL INVESTMENT. DOORS OPEN A BIG SIDE OF SUPPORTING THAT. SHOULD THIS BE AN EVERY YEAR THING? DO WE WANT TO MAKE INDIVIDUAL ORGANIZATIONS APPLY EVERY YEAR? COULD IT BE LONGER SO THAT THERE IS MORE RELIABLE FUNDING? THAT IS JUST A SAMPLING. I THINK IT WILL BE A REALLY ROBUST DISCUSSION ABOUT A NUMBER OF QUESTIONS. I WILL SAY TO YOU, MY HOPE IS THAT WHEN DOORS OPEN, IT WILL CREATE REAL, NOT JUST CULTURAL BUT ALSO ECONOMIC IMPACT. YOU ALL, I KNOW, SPEAK A LOT ABOUT DOWNTOWN SEATTLE AND ARE FOCUSED ON REVITALIZATION. OTHER JURISDICTIONS HAVE THE SAME INTEREST OR GROWTH. THAT IS WHAT I WANT TO SEE. I WANT TO SEE HOW EACH OF THESE INDIVIDUAL PROGRAMS ADDS UP TO MAJOR ECONOMIC IMPACT AS OPPOSED TO A LOT OF LITTLE GRANTS ALL OVER THE PLACE. WE WANT TO HELP EVERYBODY. WE WANT TO MAKE A BIG CHANGE BECAUSE YOU KNOW, BRINGING PEOPLE OUT INTO THE STREETS AND BRINGING PEOPLE OUT AT NIGHT TO SEE THINGS, TO HAVE VIBRANT INTERACTION WITH EACH OTHER WITH ENGAGEMENT, ARTS IS A HUGE PART OF THAT. WE ARE HOPING THAT WILL SOMEHOW SHOW UP IN THE PROGRAMMING AS WE ADOPT THE INFORMATION. >> THANK YOU. I REALLY JUST WANT TO RECOGNIZE THAT DOWNTOWN SEATTLE HAS ONE OF THE DENSEST PLACES OF ARTS AND CULTURE INSTITUTION IN THE NATION. IT IS REALLY A LUCKY THING THAT WE HAVE. IT CREATES A LOT OF ECONOMIC ACTIVITY. WE STILL HAVE MORE WORK TO DO DOWNTOWN AND IT IS ONE OF OUR CORNERSTONES. THERE IS REALLY NOWHERE ELSE IN THE COUNTRY TO DO IT. WE ARE THE MOST GEOGRAPHICALLY ISOLATED CITY OF OUR SIZE IN THE NATION AND WE HAVE SUCH A RICH SET OF INSTITUTIONS. COUNCILMEMBER CLAUDIA BALDUCCI, I WILL SWITCH HATS WITH YOU . BUILDING NORTH AND SOUTH AND EAST, WHEN THE DOORS OPEN, IT IS GIVING US THE POSSIBILITY OF HAVING THE DENSEST REGION OF ARTS AND CULTURE INSTITUTIONS. WHETHER YOU ARE GETTING TOURISTS COMING IN FOR A CRUISE, THEY SOON WILL BE ABLE TO TAKE LIGHT RAIL TO SEE ONE OF THESE INSTITUTIONS. HOPEFULLY SOON DOWN TO FEDERAL WAY AND UP TO WYNNEWOOD. I GUESS THAT IS OUT OF OUR COUNTY BUT CLOSE ENOUGH. I HIGHLIGHT THAT BECAUSE AS WE ALL WORK TOGETHER, WE ARE ABLE TO HIGHLIGHT EACH COMMUNITY'S CONTRIBUTION TO OUR CULTURE , CULTURAL COMMUNITY. IT IS JUST A VERY EXCITING OPPORTUNITY BECAUSE IT IS NOT JUST SEATTLE THAT WE WANT TO HAVE THIS RICH VIBRANCY, WE WANT THE WHOLE REGION. >> I WANT TO ADD THAT WE WERE CURIOUS ABOUT, OUT OF THAT 700, HOW MANY WERE IN SEATTLE? WE DID AN INFORMAL COUNT OF WHO APPLIES TO OUR PROGRAM ? NONPROFIT ARTS AND CULTURE AND WE FOUND 546 ORGANIZATIONS. WE KNEW THAT WAS AN UNDERCOUNT. WE KNEW SOME ORGANIZATIONS THAT DON'T APPLY TO US. THAT IS JUST SOME CONTEXT TO BEAR IN MIND THAT QUITE A FEW ORGANIZATIONS WILL BE HERE. >> THE ONE THING THAT WE WANT TO SET OUR SIGHTS ON HIS THIS OPPORTUNITY. IT IS SUPERPERSONAL. WHEN I DID WORK AT THE NORTHWEST STATION AMERICAN THEATER, UNFORTUNATELY OUR 10% DEFICIT THAT WE CARRY YEAR AFTER YEAR LED TO THE CLOSURE OF THAT ORGANIZATION IN FINANCIAL INSTABILITY. IT WILL EAT AWAY AT THE WORK. THEY ASKED IF THAT IS IMPORTANT TO THE COMMUNITY. ESPECIALLY IN SEATTLE, THEY DON'T KNOW IF THAT IS THE BEST PLACE TO CULTURAL PROGRAMMING. ONE OF THE THINGS, WHEN I WORKED AT UC NORTHWEST, THE PUBLIC SCHOOL CULTURAL ACCESS -- WE WILL NEVER FORGET THE PHONE CALL THAT WE GOT. THEY DID NOT HAVE MONEY FOR THE DRAMA TEACHER AND THEY WANTED SOMEBODY TO COME UP AND DIRECT A SHOW FOR THE KIDS WHO WANTED TO BE IN THE SHOW. WE DID NOT HAVE THE MONEY FOR IT, FOR THE EDUCATION DIRECTOR. SHE DROVE UP AT 3:00 EVERY DAY TO NORTH BEND TO MAKE SURE THE KIDS COULD PERFORM THE MUSICAL. WE HAD TO PUT OUR MONEY INTO THAT. IT WAS IMPORTANT KNOWING THAT THERE ARE RESOURCES -- THERE ARE STUDENTS TO EXPERIENCE THE JOY OF CREATIVE PROGRAMMING. LAUNCH PROGRAM, I WAS ON THE BOARD OF CULTURAL ACCESS WASHINGTON. WE PUT ACCESS FOR ALL ON THE BALLOT IN 2017. ONE OF MY OUTREACH AREAS WAS BLACK DIAMOND. I WENT UP THERE ALMOST EVERY SINGLE WEEKEND TO TALK ABOUT WHY THE PROGRAM WAS IMPORTANT AND IT WAS DEVASTATING FOR ME AT THE END OF THE DAY THAT THAT WAS THE COMMUNITY THAT HAD THE LOWEST AMOUNT OF SUPPORT. WHEN I HAD THOSE CONVERSATIONS, WHY WE ONLY GARNERED 18%, THE ANSWER WAS SIMPLE. WE DON'T HAVE ENOUGH CULTURAL PROGRAMS. I CAN'T FIGURE OUT WHERE THAT MONEY WILL COME IN. THAT IS WHY THE LAUNCH PROGRAM PROVIDES OPPORTUNITIES IN BALLARD, IN WEST SEATTLE, IN DOWNTOWN AND IN SHORELINE FOR CREATIVE PEOPLE TO HAVE AN IDEA AND TO CREATE SOMETHING THAT WILL SERVE THE COMMUNITY. OF COURSE, PUBLIC FREE ACCESS. SO MANY PEOPLE WANT TO PARTICIPATE BUT IT IS EXPENSIVE TO DO THINGS AND ORGANIZATIONS DO AS MUCH AS THEY CAN TO CREATE ACCESS BUT THERE IS STILL A BOTTOM LINE AT THE END OF THE DAY. ALL OF THIS IS GOING TO LIFT UP OUR COMMUNITIES. IT WILL CREATE THAT VIBRANCY THAT WE ALWAYS TALK ABOUT. OF COURSE, EVERYTHING ELSE WILL COME ALONG. JOBS, LOCAL ECONOMY, TREMENDOUS IMPACTS FOR EVERY CITY IN KING COUNTY. >> MOVING ON, I THINK THIS IS AN INTERESTING ASPECT OF THE PROGRAM BUT NOT MANY PEOPLE UNDERSTAND. I LOOK TO YOU BOTH TO UNDERSTAND IT BETTER. THERE IS A LEGISLATIVE MANDATE THAT IS A NON-PLANTATION CLAUSE. THE COUNTY FUNDING THAT ANY FUNDING USUALLY AND CUSTOMARILY PROVIDED TO CULTURAL ORGANIZATIONS SIMILAR TO FUNDING THAT WOULD BE AVAILABLE TO SOME ORGANIZATIONS UNDER THIS CHAPTER MAY NOT BE REPLACED OR MATERIAL DIMINISHED AS A RESULT OF FUNDING BECOMING AVAILABLE UNDER THIS CHAPTER. HELP US UNDERSTAND WHAT THIS IS IN PLAIN LANGUAGE, PLEASE. >> IN PLAIN LANGUAGE -- I AM TALKING FROM THE VIEW OF THE LEGISLATURE OF 2015, THEY RECOGNIZE THAT ALL OF THESE OPPORTUNITIES ARE REALLY IMPORTANT. THERE IS NO DIRECT REVENUE STREAM THAT CAME FROM PUBLIC GOVERNMENT BUT THEY ALSO UNDERSTOOD THAT ALL ACROSS THE STATE OF WASHINGTON, THERE WERE EXISTING REVENUE STREAMS. THE POINT WAS IT WAS NOT TO REPLACE IT. THE PROBLEM WAS NOT THAT THERE WAS SOMETHING WRONG WITH INVESTING CURRENT MONEY, THE PROBLEM WAS THE EXISTING MONEY WAS NOT DOING ENOUGH. THEREFORE, BY NOT SUPPLANTING IT , BY ADDING THIS NEW LEVEL OF REVENUE TO SUPPORT ACCESS TO SCIENCE, HERITAGE, AND THE ARTS, THE LEGISLATURE THOUGHT THIS IS IT. THIS IS HOW WE SERVE THE PEOPLE THAT ARE COMING INTO THE MUSEUM. THEY THOUGHT THAT IF YOU SUPPLANT IT, THEN THERE IS NO ADVANCEMENT. THERE IS NO GREATER OUTREACH THAT IS HAPPENING. WHEN I TALK ABOUT THE STORY ABOUT CULTURAL ACCESS, I AM ALWAYS TALKING ABOUT THE OPPORTUNITIES THAT WE DON'T HAVE THE RESOURCES TO PURSUE AND THAT VERY MUCH IS A STORY THAT WE HAVE HERE IN KING COUNTY, ESPECIALLY IN THE CITY OF SEATTLE BECAUSE IT IS THE MOST -- I JUST FINISHED UP A 30 CITY STATE TOUR. NO PLACE IS AS EXPENSIVE TO DO CULTURAL PROGRAMS. THE GAPS ARE BIGGER RIGHT HERE IN SEATTLE. >> ONE THING TO ADD IS THAT THE NONPROFIT CREATIVE SECTOR IS STILL STRUGGLING POST-PANDEMIC. I THINK THAT THEY COULD USE EVERY SINGLE PENNY THEY COULD GET IN ORDER TO MAINTAIN, SUSTAIN, AND GROW. I WILL ADD THAT AS WE ADOPTED OUR ORDINANCE AS THE COUNCIL, WE ADDED A STATEMENT THAT AFFIRMED THAT WE NOT REPLACE MATERIAL FUNDING AVAILABLE UNDER THIS CHAPTER. FOR US, THAT IS LARGELY THE LODGING TAX. OUR CURRENT CULTURAL ARTS HERITAGE PROGRAM IS FUNDED PRIMARILY BY A LODGING CUT. LODGING TAX CAN BE USED FOR AT LEAST THREE DIFFERENT THINGS. CAN BE USED FOR ARTS AND CULTURE, ECONOMIC DEVELOPMENT AND AFFORDABLE HOUSING. WE MADE THE COMMITMENT THAT WE WOULD NOT SHIFT OUR CURRENT FUNDING PIE, IF YOU WILL, THE WEDGES OF THE PIE, IN ORDER TO DO THIS. WE WILL ADD THE DOORS OPEN FUNDING ON TOP OF THAT AND THEN CREATE A PROGRAM THAT ATTRIBUTES ALL OF THAT. I WILL ALSO SAY THAT IT IS OUR HOPES AND OUR DREAMS TO TALK ABOUT THE FACT THAT WE WANT THIS TO BE TRANSFORMATIVE FUNDING. WHEN YOU HAVE THIS KIND OF A BRAND-NEW -- YOU WANT TO SEE TRANSFORMATIONAL THINGS HAPPEN. THAT HAPPENS WHEN WE CAN LEVERAGE OTHER INVESTMENTS AS OPPOSED TO SHRINKING. THAT IS OUR DREAM AND OUR HOPE. WE WILL HAVE TO WORK THROUGH IT. THAT IS WHERE WE HOPE TO LOOK BACK A FEW YEARS FROM NOW WHEN WE ARE THINKING ABOUT ROUND TWO OF THE DOORS OPEN. WE SAY LOOK AT WHAT WE DID HERE. IT MADE A BIG DIFFERENCE TO WORKERS. >> THIS IS OUR LAST SLIDE. OTHER FEATURES, WHAT IS NEXT. PROGRAMS WILL BE AWARDED IN 2024. WE HAVE A FUNDING DISTRIBUTION MODEL STARTING IN 2025 AND PROGRAM STARTING IN 2025 WILL STILL BE APPROVED BY COUNCIL. I THINK WE HAVE ALREADY TALKED QUITE A BIT ABOUT THAT. THIS IS OUR LAST SLIDE. WE ARE OPEN TO ANY FURTHER QUESTIONS. WE HOPE THAT THIS IS MORE OF A DIALOGUE. >> YES. I HAVE A COUPLE OF QUESTIONS. I WANT TO THANK YOU ALL FOR BEING HERE TODAY. I LOOK FORWARD TO LEARNING MORE ABOUT HOW WE CAN BE GOOD PARTNERS ON THE DOORS OPEN PROGRAM. I THANK YOU ALL FOR ALL YOUR WORK ON THIS. ANY QUESTIONS OR COMMENTS? >> THANK YOU, MADAM CHAIR. A QUICK COMMENT. FIRST OFF, THANK YOU COUNCILMEMBER CLAUDIA BALDUCCI, DIRECTOR GOLDEN AND MANNY. I APPRECIATE THIS PRESENTATION AND OVERVIEW. IT HELPED EMPOWER ME, PERSONALLY. ON THIS REALLY IMPORTANT BODY OF WORK, REGIONAL BODY OF WORK AS WELL. ALSO, COUNCILMEMBER CLAUDIA BALDUCCI, IT IS GREAT -- I HAVE HAD THE PLEASURE AND HONOR OF APPEARING BEFORE YOU IN VARIOUS KING COUNTY COUNCIL MEETINGS AS VOLUNTEER BOARD COMMISSION MEMBER IN VARIOUS CAPACITIES. IT IS NICE TO BE ABLE TO HAVE YOU APPEAR BEFORE ME IN THIS CAPACITY AND TO BE ABLE TO WORK WITH YOU ON REGIONAL BOARDS AND COMMISSIONS. BY THE WAY, COUNCILMEMBER STRAUSS, IN YOUR HYPOTHETICAL EXAMPLES, THOSE PASSENGERS WILL BE ABLE TO TAKE SOUND TRANSIT TO THE EAST SIDE AND SOON THEY WILL BE ABLE TO TAKE SOUND TRANSIT TO WEST SEATTLE. WE NEED TO BUILD THAT AND GET IT GOING. BUT, I WANTED TO TALK JUST A MOMENT ABOUT THE WHOLE S.T.E.A.M. VERSUS S.T.E.M. DISTINCTION. I HAPPEN TO HAVE STRONG FEELINGS ON THAT. IT IS INFORMED BY THE FACT THAT, THE LAST 10 YEARS OF MY LIFE, I SPENT IN TECH. MICROSOFT, META, REPRESENTING STARTUP TECHNOLOGY COMPANIES, FORTUNE 500, EVERYTHING IN BETWEEN. FOR MEMBERS OF THE PUBLIC THAT MIGHT NOT KNOW, I AM ALSO SOMEONE WHO OVERCAME THE FOSTER CARE SYSTEM. I AM SOMEONE WHO WENT TO 13 DIFFERENT K-12 SCHOOLS, ALL OF THEM TITLE I, FOR KIDS LIKE MYSELF AT THE TIME THAT WERE FREE AND REDUCED LUNCH. NEVER MET A PUBLIC SCHOOL I DID NOT LIKE, ALL THE WAY THROUGH LAW SCHOOL. I HAD NOT ONE, BUT TWO COMMUNITY COLLEGE DEGREES AND I ANSWERED -- ENTERED THESE REALLY COOL SPACES PROFESSIONALLY, IN TECH, WHERE NOT MANY PEOPLE SHARED A BACKGROUND SIMILAR TO MINE FROM A RACE AND SOCIOECONOMIC STANDPOINT. I HAD A LOT OF IMPOSTER SYNDROME BUT I THOUGHT LIKE HECK TO OPEN UP THE DOORS AND DO WHAT I CAN, ADVOCACY -WISE, TO MAKE SURE MORE PEOPLE FROM DISADVANTAGED BACKGROUNDS AND COMMUNITIES ARE ABLE TO ACHIEVE THEIR TRUE POTENTIAL IN LIFE AND THRIVE AND IDEALLY, IN TECH AND REPRESENTED NONPROFITS, PRO BONO THAT WERE ON THE PRIVATE NONPROFIT SIDE TO HELP THAT HAD MISSIONS EXACTLY TO DO THAT . I WAS VERY INVOLVED, INCLUDING LEADERSHIP ROLES ON VARIOUS AFFINITY GROUPS WITHIN THESE ORGANIZATIONS, WHETHER IT IS VETERANS OR BLACK EMPLOYEES, WHATEVER IT IS TO HELP CHAMPION DIVERSITY, EQUITY, AND INCLUSION, NOT JUST DIVERSITY AND INCLUSION. I HAVE STRONG FEELINGS ABOUT THIS. FOR MEMBERS OF THE PUBLIC, THIS'LL DIABY -- S.T.E.A.M. VERSUS S.T.E.M.. S.T.E.A.M. IS AN A ADDED ONTO THAT. THE NOTION IS YOU ARE BEING INCLUSIVE OF THE ARTS. THIS IS ONE OF THE MOST CLASSIC DEBATES. SHOULD IT BE S.T.E.A.M. OR SHOULD IT BE S.T.E.M.? I WILL JUST SHARE, PERSONALLY, I HAPPEN TO BE A FAN OF S.T.E.M. AND S.T.E.M. ONLY. THE REASON WHY IS, WHEN -- S.T.E.M. AND THEN TREATING ARTS SEPARATELY. THE REASON WHY IS BECAUSE WHEN YOU START INTRODUCING ARTS INTO S.T.E.M., IT RISKS SCOPE, RISKS THE POSSIBILITY OF BOILING THE OCEAN AND MAKES POTENTIALLY RESULTING IN SITUATIONS WHERE ROLES AND RESPONSIBILITIES AND IMPACT ARE UNCLEAR. HOWEVER WELL INTENDED WHEN YOU S■TART CHAINING ON ONE WELL INTENDED CONTRACT OR IDEA INTO POTENTIALLY RESULT IN CREATING THIS FRANKENSTEIN COOL LOOKING THING THAT IS SOMEWHAT CONFUSING AND CLUNKY AS WELL . THAT IS WHY I AM PERSONALLY A FAN, AT LEAST FOR THE CITY OF SEATTLE, GOVERNMENT PERSPECTIVE, I AM PERSONALLY A FAN OF TREATING THOSE TWO REALLY IMPORTANT CONSTRUCTS. HAVING THEM BE COEQUAL AND INDEPENDENT AND FOR THE REASONS I MENTIONED. I JUST WANT TO SHARE ALL OF THAT AND, AS MY VIEW WITH RESPECT TO THE CITY OF SEATTLE, THE DOOR IS OPEN . GREAT PROGRAM. WAS NOT AT ALL INVOLVED IN THAT BUT I COULD SEE WHY IT MAKES A LOT OF SENSE REGIONALLY TO ADD TECHNOLOGY AND SCIENCE INTO THE MODEL THERE. AGAIN, FROM MY PERSPECTIVE AT THE CITY OF SEATTLE, I THINK THEY SHOULD BE SEPARATE. THANK YOU. >> THANK YOU. I HAVE TWO QUESTIONS. WE GET A LOT OF QUESTIONS REGARDING DOORS OPEN, WHICH IS WHAT BROUGHT ABOUT THIS ROUNDTABLE. A LOT OF ORGANIZATIONS ARE VERY KNOWLEDGEABLE BUT HOW WOULD YOU HAVE THE ENGAGEMENT PLAN TO REACH SMALLER ORGANIZATIONS? THEY ARE FOCUSED AWAY FROM THE COUNTY OR THE CITY. >> I THINK THAT -- I WANT YOU TO IMAGINE THE TIME WE HAVE BEEN THROUGH. THERE HAS BEEN A TREMENDOUS AMOUNT OF OUTREACH FOR ORGANIZATIONS DURING THE PANDEMIC BECAUSE THE SUPPORT WAS SO CRITICAL. FROM OUR CITY ARTS COMMISSION AS WELL AS THE CITY ARTS COMMISSION FOR CULTURE AS WELL AS FOR THE STATE. THERE ARE A LOT OF PEOPLE TUNED IN RIGHT NOW. I HAVE FULL CONFIDENCE THAT WE HAVE THE HEART AND THE DRIVE TO DO ALL OF THAT IMPORTANT OUTREACH AND THERE IS GREAT PARTNERS. IT IS VERY IMPORTANT TO INSPIRE WASHINGTON AS WELL , THAT EVERYONE THAT IS ELIGIBLE IS APPLYING. INFORMATION IS POWER. THAT IS WHY WE DO 30 CITIES AND TOWNS ACROSS WASHINGTON EVERY DAY, EVERY YEAR. ABSOLUTELY THAT WILL BE THE INTENTION OF THE PROGRAM. WE ALSO HAVE A SEVEN YEAR AUTHORIZATION PERIOD. MORE AND MORE PEOPLE WILL GET ON BOARD AND UNDERSTAND WHERE THE OPPORTUNITIES ARE. THERE IS IMAGINATION THAT WILL TAKE PLACE THROUGH THIS. THERE IS IMAGINATION WITH THOSE ARTISTS LIVE IN THE SNOQUALMIE VALLEY, IMAGINING THAT THEY COULD CREATE A POETRY CENTER AND THEY COULD APPLY FOR A LAUNCH PROGRAM. IT IS NOT JUST ABOUT INFORMATION, IT IS ABOUT FEEDING FOLKS AND THEIR CULTURAL IMAGINATION. >> I JUST WANT TO ADD THAT 4CULTURE, IN BUILDING BOTH THE PROPOSED ORDINANCE THAT WE UNDERSTAND IT -- THAT WE ENDED UP IMPLEMENTING AND ADOPTING OVER THE YEARS, AND THE IMPLEMENTATION PLAN HAVE CONDUCTED DOZENS AND DOZENS OF COMMUNITY ENGAGEMENT SESSIONS ALL OVER THE COUNTY. THEY HAVE MADE AN EXPLICIT EFFORT TO TRY TO REACH THE FOLKS THAT DON'T ALREADY KNOW THAT 4CULTURE EXISTS. THEY HAVE DONE IN PERSON AND ONLINE, TRYING TO BE ACCESSIBLE ON EITHER WAY. WE WILL MAKE SURE WE GET MORE DETAILED INFORMATION ON WHAT THE OUTREACH HAS BEEN. >> I WOULD LOVE TO SAY A QUICK MEMBER OF COMMENT TO COUNCILMEMBER SAKA. THANK YOU FOR SHARING THAT VERY CLEAR INTEREST IN YOUR BACKGROUND AND PERSONAL STORY. I WANT TO BE SURE THAT WE ARE CLEAR THAT THE SCIENCE ASPECT OF WHAT HAD BEEN IN ARTS, CULTURE, AND HERITAGE PROGRAM WAS ADDED BY THE STATE STATUTE. THAT IS WHAT WE HAVE TO WORK WITH. AS WE IMPLEMENTED -- IT MIGHT NOT BE CLEAR . THERE WILL BE FOUR DIFFERENT PROGRAMS, ARTS AND CULTURE, HERITAGE, PRESERVATION AND SCIENCES AND THEY WILL BE DIFFERENT TEAMS WITH DIFFERENT GRANT PROGRAMS. THESE DIFFERENT TYPES OF THINGS, PUBLIC SCHOOL ACCESS WILL APPLY IN EACH OF THOSE FOUR DIFFERENT PROGRAMS BUT THEY WILL BE SEPARATE. THERE IS A TEAM. WE CAN'T WHOLLY SAY THAT WILL BE OVER IN A DIFFERENT PLACE AND WE WILL NOT FUND IT WITH THIS MONEY BUT WE WILL KEEP THE CHOCOLATE AND THE PEANUT BUTTER KIND OF SEPARATE IN THAT WAY. >> I AM REALLY DELIGHTED ABOUT THE OPPORTUNITIES IN THE SCIENCE SECTOR BECAUSE WE HAVE ORGANIZATIONS THAT ARE JUST BRAND NEW THAT WE HAVE NOT EVEN HEARD OF YET. THE SEATTLE SCIENCE MUSEUM IS WORKING TO LAUNCH MOBILE PROGRAMMING AND THEY ARE LOOKING TO LAUNCH A NEW PLACE SAFE CENTER FOR CHILDREN IN THE S.T.E.M. EDUCATION IN SOUTH SEATTLE. I THINK THERE IS SO MUCH OPPORTUNITY TO INCREASE HOW WE CAN CONNECT S.T.E.M. AS WELL AS THE WORD OF YOUR CHOICE. >> I LOVE THIS KIND OF CONVERSATION. IT HAPPENS IN MY WORK ALL THE TIME. I WOULD LOVE TO KEEP TALKING ABOUT THIS. I THINK THAT S.T.E.M. AND S.T.E.A.M. IS STRUCTURED AROUND SKILL BUILDING AND WHAT WE ARE TALKING ABOUT IN THE ARCH AND CULTURAL SECTOR IS THE EXPERIENCES. IT IS ABOUT PROMOTING CREATIVITY AND CRITICAL THINKING. I BELIEVE IN THE FULL , UNLIMITED POSSIBILITY OF HUMAN BEINGS. I THINK THAT WE CAN BE CREATIVE AND WE CAN USE OUR CRITICAL THINKING SKILLS. HERE IS MY EXPERIENCE. I KNOW THAT MY ENGAGEMENT IN THE ARTS HAS MADE ME A BETTER PERSON BECAUSE I AM A BETTER SON AND BROTHER AND SIBLING CAUSE I HAVE VERY DEVELOPED EMOTIONAL SKILLS. RIGHT? I AM GOING TO TALK ABOUT -- I WORK AT NORTHWEST. MANY OF OUR STUDENTS WENT ON TO WORK IN THE TECH FIELD. IN FACT, THEIR PARENTS WERE TECH PEOPLE. THEY PUT THEIR KIDS IN NORTHWEST BECAUSE THEY KNEW MANY OF THEM, THAT THEIR KIDS WERE SMART ENOUGH FOR THE TECHNICAL SIDE BUT THEY FEARED THAT THEY WOULD GET LOST IN THE PEOPLE CULTURE OF TECH ORGANIZATIONS. IT IS NOT ONE OR THE OTHER. I THINK ALL OF THIS IS IMPORTANT FOR US TO BE SUCCESSFUL. I KNOW FROM THE KIDS THAT WE MEN TOWARD -- I JUST RAN INTO ONE WHEN I WAS COMING BACK FROM SPOKANE ON THE LIGHT RAIL. HE RECOGNIZED ME AND HE WAS LIKE, I AM RUNNING A RESTAURANT RIGHT NOW AND I WOULD NEVER BE ABLE TO DO IT. I HAD 50 PEOPLE ALL COMING AT ME. IT IS A LOT TO JUGGLE. THERE WAS SOCIAL EMOTIONAL SKILLS THAT MAKE HIM A GREAT LEADER. I THINK IT IS ALL OF THAT BUT I LOOK FORWARD TO HAVING MORE CONVERSATIONS ABOUT THIS. >> YOU ARE RIGHT. I COULD NOT AGREE MORE. THANK YOU, COUNCILMEMBER CLAUDIA BALDUCCI. IT IS NOT ONE OR THE OTHER AND ALL OF THESE THINGS CAN COEXIST HARMONIOUSLY. IT IS JUST, MY COMMENTS DO STAND FROM THE SEATTLE CITY GOVERNMENT PROSPECTIVE. PROGRAMMATICALLY, I THINK THEY SHOULD BE TREATED SEPARATELY AND NOT WITH ANY STATE LIMITATIONS IN CERTAIN INSTANCES AND OTHERWISE. WHEN YOU START CHAINING THEM ALTOGETHER, IT DILUTES THE POTENTIAL VOICE AND IMPACT AND THEY CAN COEXIST SEPARATELY. THANK YOU. >> HERITAGE AS WELL AS PRESERVATION IS A PART OF DOORS OPEN. I HAVE WORKED WITH CULTURE, APPLIED FOR GRANTS IN THE ORGANIZATION. I HAD AN AMAZING TIME. I HAVE GREAT GUIDANCE THROUGHOUT THE ENTIRE PROCESS. I HAD COME BACK WITH A COUPLE OF COMMITTEES , TO CHOOSE GRANTS OR WHO TO GRANT MONEY TO AND THE ORGANIZATION IS AMAZING. I AM VERY GLAD TO HEAR THAT THEY WILL BE ABLE TO EXPAND THEIR PROGRAMMING AND THEIR REACH AND WE WOULD LOVE TO HEAR MORE ABOUT THAT. HOW CAN THE CITY COUNCIL MEMBERS SUCH AS OURSELVES -- THIS ALSO APPLIES TO YOUR WORK, MANNY, AND TO GULGUN KAYIM, WHAT CAN WE DO TO THE CITY OF SEATTLE TO HELP THIS PROGRAM IN THE COUNTY? >> THIS IS SOMETHING I WOULD LIKE TO HAVE A CONVERSATION ABOUT. I THINK WE CAN FIGURE THIS OUT TOGETHER. PRIOR TO THE PROGRAM, OUR PILLARS HERE IN THIS REGION WERE, AS FAR AS PUBLIC INVESTMENTS, WHERE THE CITY OF SEATTLE'S ADMISSION TAX AND KING COUNTY'S INVESTMENT THROUGH A LOGGING TAX. WHEN WE GOT DOORS OPEN ACROSS THE FINISH LINE, IT WAS IMPORTANT FOR US TO DEMONSTRATE WITH TANGIBLE RESOURCES THAT WE WOULD GROW CULTURAL INFRASTRUCTURE, COUNTYWIDE. THAT IS WHY WE HAVE THE 25% PROVISION FOR A MINIMUM OF 25% FUNDING GOING UP BY THE CITY OF SEATTLE. A LOT OF THAT WAS ENVISIONED BY BALANCING WITH THE SIGNIFICANT INVESTMENT. THIS IS SOMETHING THAT WE HAVE TO PAY REAL ATTENTION ON THE PUBLIC POLICY LEVEL. THERE WAS A TIME WHERE I DROPPED ON CAPITOL HILL. PEOPLE DON'T LIVE THERE IN THE NUMBERS AS THEY USED TO LIVE BEFORE. THEY LIVE IN RENTON, THEY LIVE OUT OF THE COUNTY. THEY ARE LOOKING FOR AFFORDABLE PLACES TO LIVE. MANY OF THEM STILL TRAVELING TO SEATTLE FOR WORK BUT YOU CAN IMAGINE HOW EXHAUSTING IT WILL BE WITH ALL OF THE THINGS WE HAVE TO GET DONE IN THE DAY. I KNOW THAT THE INTENTION WITH THE 25% WAS TO GROW CULTURAL INFRASTRUCTURE OUTSIDE OF KING COUNTY BUT NOT AT ALL TO THREATEN THE VERY IMPORTANT CULTURAL HUB HERE IN THE CITY OF SEATTLE. THERE IS SOME PLAY BETWEEN THOSE. A REALLY GREAT CONVERSATION FOR US TO HAVE FOR THIS ROUNDTABLE AS WELL AS THE BROADER COMMUNITY IS, WHY IS -- WHAT IS THAT RELATIONSHIP TO EACH OTHER? WHY IS THAT IMPORTANT? >> ME I HAD SOMETHING TO YOUR QUESTION? THERE IS ALSO ONE OTHER QUESTION TO THINK ABOUT FOR THE NONPROFITS WHERE WE ARE INVITING TO COLLABORATE ON REVITALIZING DOWNTOWN. WITH THE RESOURCES THAT THEY CURRENTLY HAVE, THEY ARE REALLY STRUGGLING TO GET BACK TO PRE-PANDEMIC LEVELS. I MENTIONED THIS BEFORE, WITH THE FEDERAL SOLID GOING AWAY AND THEY ARE FACING A FISCAL CLIFF, THIS TYPE -- THESE TYPES OF RESOURCES ARE EXACTLY THE KIND OF THING AS MENTIONED BY COUNCILMEMBER BALDUCCI. WE ARE LOOKING TO NOT JUST STABILIZE BUT PUSH THE ENGINE FORWARD SO WE CAN MAKE DOWNTOWN ACTIVATION A REALITY. FROM MY PERSPECTIVE, THE RESOURCES THAT WE ALREADY HAVE, WE SHOULD KEEP IN PLACE. SHOULD NOT BE A SITUATION OF EITHER/OR. >> PLEASE DO GIVE US YOUR SINCERE INPUT INTO THE IMPLEMENTATION PLAN. >> THANK YOU. >> WE WANT THE IMPLEMENTATION AND THE DISTRIBUTION OF THE FUNDING TO HAVE THE GREATEST IMPACT AND THAT REQUIRES THE KNOWLEDGE YOU HAVE OF YOUR CITY AND OTHERS HAVE OF THEIR CITY SO IT IS NOT JUST CITY COUNCIL MAKING THAT DECISION. PLEASE DO ENGAGE IN THAT. BE IN TOUCH WITH US, WITH YOUR COUNCILMEMBERS. I WANT TO SECOND MANNY AND COUNCILMEMBER 1027 INTERWEAVING THE ISSUES. SO MUCH OF WHAT YOU DO, IT ALL WORKS TOGETHER TO BUILD A VIBRANT COMMUNITY AND ECONOMY. WE DO HEAR A LOT FROM PEOPLE IN THE CREATIVE SECTOR WHO HAVE JOBS AND IT IS NOT JUST PEOPLE WHO STAND ON THE STAGE. IT IS PEOPLE WHO WORK THE LIGHTS. PEOPLE WHO ENGAGE WITH THE PUBLIC FOR TICKETS. SO MANY JOBS IN A VERY LARGE SECTOR AND A PERCENTAGE OF SEATTLE'S ECONOMY. TO YOUR POINT, SEATTLE HAS ALWAYS BEEN ABOVE ITS WEIGHT IN TERMS OF ARTS AND CULTURE AND THAT IS A LOT OF JOBS, BUT THOSE PEOPLE CAN HARDLY AFFORD TO LIVE IN OUR COUNTY, LET ALONE CENTER CITY. CONTINUING TO WORK ON THOSE INTERLOCKING ISSUES WILL BE SO IMPORTANT FOR US ALL. FINALLY I REALLY WANT TO THANK AND COMMEND THE CITY AND THE CITY COUNCIL FOR BEING SUCH LEADERS SUPPORTING ARTS AND CULTURE AND SEEING THE VALUE OF ARTS AND CULTURE AND SCIENCE AND PRESERVATION. I WANT TO SEE ALL OF THE CITIES OF KING COUNTY TO FOLLOW AND JOIN THAT BECAUSE TOGETHER WE HAVE SUCH STRENGTH AND LEVERAGING THAT STRENGTH MEANS IT IS AN INCREDIBLE PIVOT POINT FOR THE FUTURE OF OUR REGION, SO THANK YOU. >> THANK YOU. WE HAVE BEEN HEARING LOUD AND CLEAR THAT PEOPLE ARE WORRIED THAT DOORS OPEN SUNDAY. THAT WE HAVE TO PRESERVE OUR CURRENT FUNDING AND NOT ALLOW THIS TO REPLACE THAT OR IN LIEU OF AND BE ABLE TO PRESERVE THE SERVICES AND GRANTS AND OPPORTUNITIES. I AM ALSO HEARING, YOU KNOW, WE ALWAYS TALK ABOUT FIFA SOCCER AND HOW IT WILL BRING SIX SUPER BOWLS WORTH OF PEOPLE IN OUR REGION PER MONTH. BUT WE WERE MADE AWARE THAT THE ARTS COMMUNITY DOES THE SAME THING EVERY SEASON. THE AMOUNT OF PEOPLE, THEY BRING INTO DOWNTOWN SEATTLE FROM THE ARTS COMMUNITY, CONCERTS, IS THE SAME. WHILE WE ARE FOCUSING ON FIFA, WE SHOULD ALSO FOCUS ON THE EVERY DAY OF WHAT THE ARTS AND CULTURE COMMUNITY DOES FOR THE CITY OF SEATTLE. SO, THANK YOU SO MUCH FOR ALL YOUR WORK ON THIS AND I BELIEVE IT IS REALLY IMPORTANT TO UNDERSTAND THE RESOURCES OUT THERE AND THE IMPACTS IT HAS ON THE ECONOMY. THANK YOU, COUNCILMEMBER BALDUCCI, MANNY, AND DIRECTOR KAYIM FREE WORDS TODAY. DO YOU HAVE ANY WORDS TO PART US WITH? >> I WANT TO SHARE A POINT OF VIEW FROM THIS PAST WEEKEND. INSPIRE WASHINGTON WORKS WITH ORGANIZATIONS LIKE OURS IN EVERY STATE. THIS PAST WEEKEND ONE OF MY COUNTERPARTS WAS IN WASHINGTON STATE AND SHE HAD A FAMILY REUNION ON WHIDBEY ISLAND AND I HAD A FULL DAY WHERE I TOOK HER ALL OVER SEATTLE. WE WENT TO THE MARKET, WE WENT TO THE SCULPTURE PARK. WE WENT TO THE SEATTLE ART MUSEUMS. SHE SAW ONE OF THE ORIGINAL PIECES OF PUBLIC ART IN THE NATION. WE RAN INTO SO MANY FESTIVALS. SHE KEPT SAYING, MY GOSH, THERE ARE FESTIVALS EVERYWHERE. ABSOLUTELY. WHAT SHE SAW JUST REALLY REINFORCE THAT WE ARE A VIBRANT CITY WITH PEOPLE ENGAGED AND HAPPY. THE NUMBER OF PEOPLE SITTING ON THE HILL WAS OVERWHELMING TO HER. SHE WAS LIKE IT IS 9:30, RIGHT? WE HAVE SOMETHING REALLY SPECIAL HERE AND I KNOW THAT WE CAN BE MORE AND I ALSO KNOW THAT WE CAN BE MORE FOR EVERYONE WHO IS NOT HAVING AN OPPORTUNITY TO EXPERIENCE THAT. I ALSO KNOW THAT EVERYTHING WE SAW HAS A FOUNDATION OF PUBLIC SUPPORT AND THAT IS REALLY, REALLY, REALLY IMPORTANT, SO I REALLY APPRECIATE EVERYTHING THE CITY OF SEATTLE HAS DONE TO MAKE SURE WE BUILT UP THIS INCREDIBLE CULTURAL ECOSYSTEM. I KNOW THAT WE HAVE AN INCREDIBLE CULTURAL ECOSYSTEM IN KING COUNTY, BUT NOW WE WILL HAVE MORE OF THAT FOR THE PEOPLE THAT DESERVE IT SO I AM SO HONORED TO WORK WITH ALL OF YOU TO MAKE THIS A CULTURAL CAPITAL OF THE WORLD THAT I KNOW WE CAN BE. >> I THINK THAT IS A GREAT ENDING. THANK YOU SO MUCH FOR BEING HERE AND THANK YOU AND WE WILL HAVE ANOTHER ROUNDTABLE NEXT MONTH AND ANNOUNCE SHORTLY, BUT THANK YOU SO MUCH FOR BEING HERE TODAY. >> THANK YOU. >> MADAM CHAIR, POINT OF PERSONAL PRIVILEGE. I JUST WANT TO SAY, MANNY, THAT IS A REALLY COOL SHIRT YOU ARE WEARING. I REALLY LIKE IT. FROM A LEADER IN OUR ARTS COMMUNITY I WOULD EXPECT NOTHING LESS. >> THANK YOU. >> TALK ABOUT IMPOSTER SYNDROME. I FEEL LIKE EVERY TIME YOU ARE AROUND -- ANYWAYS, THANK YOU. >> THANK YOU. WE WILL NOW MOVE Seattle City Light Annual Independent Financial Audit Report Overview TO OUR NEXT ITEM OF BUSINESS. WILL THE CLERK PLEASE READ OUR THIRD ITEM INTO THE RECORD. >> AGENDA ITEM TWO, SEATTLE CITY LIGHT INDEPENDENT FINANCIAL AUDIT REPORT OVERVIEW. BRIEFING AND DISCUSSION. >> SO THANK YOU FOR BEING HERE TODAY. GO AHEAD AND BEGIN WHEN YOU ARE READY. >> HI, I AM THE GENERAL ACCOUNTING MANAGER. >> NATALIE HAYASHI, CITY LIGHT CONTROLLER. I WOULD ALSO LIKE TO INTRODUCE AARON WORTHMAN, THE BAKER TILLY PRINCIPAL IN CHARGE OF THE SEATTLE CITY LIGHT DAUGHTER -- AUDIT. HE HAS SPENT HIS CAREER FOCUSED EXCLUSIVELY ON UTILITY AND ENERGY ORGANIZATIONS. HE ALSO TEACHES UTILITY EDUCATION COURSES FOR THE AMERICAN POWER ASSOCIATION AND HE HAS AUTHORED NATIONALLY AND REGIONALLY PUBLISHED ARTICLES ON UTILITY REGULATION AND ACCOUNTING ISSUES, SO AARON WILL PRESENT BAKER TILLY'S REPORT ON THE FINANCIAL AUDIT. >> GOOD MORNING EVERYONE. MY NAME IS AARON WORTHMAN, THE MAIN AUDIT PRINCIPAL AND I AM PLEASED TO PRESENT THE FISCAL YEAR 2023 FINANCIAL AUDIT. WHAT I WANT TO DO IS I WANT TO GO THROUGH AN AUDIT OVERVIEW AND WHAT EXACT THE IS IT THAT WE DO AS PART OF THE AUDIT. TALK A LITTLE BIT ABOUT ACCOUNT CONTROLS AND CONTROL COMMUNICATION AND THEN I WANT TO GO THROUGH OUR AUDITORS COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE. THAT IS A REQUIRED COMMUNICATION AND LASTLY I WILL OPEN IT UP TO ANY QUESTIONS YOU MIGHT HAVE. SO IF WE TAKE A STEP BACK AND LOOK AT OUR AUDIT, OUR FIRM SPENDS ABOUT 1200 HOURS AUDITING SEATTLE CITY LIGHT. I WILL SAY ALTHOUGH THE MANAGEMENT TEAM MAY NOT SPEND 1200 HOURS, IT IS A SIGNIFICANT AMOUNT OF TIME. A VERY HEAVY LIFT. IN ADDITION TO THEIR DAY JOB THEY ARE ANSWERING MANY, MANY QUESTIONS. THEY ARE PUTTING FINANCIAL STATEMENTS TOGETHER, SO THERE IS A TON OF WORK INVOLVED. THEY DID A GREAT JOB AND WE APPRECIATE ALL THE HELP IN THAT. IF WE WERE TO COMPARE THIS YEAR'S AUDIT TO PRIOR YEARS, THIS YEAR WAS A PRETTY STRAIGHTFORWARD YEAR. THE ONE BIG CHANGE THAT WE HAD THIS YEAR WAS THERE IS NO ACCOUNTING GUIDANCE RELATIVE TO SUBSCRIPTION-BASED INFORMATION TECHNOLOGY. VERY SIMILAR TO THE ACCOUNTING CHANGES WE HAD A COUPLE OF YEARS AGO. BASICALLY CLOUD COMPUTING. I DO WANT TO LET YOU KNOW THAT THERE IS A SIGNIFICANT AMOUNT OF TIME THAT THE TEAM SPENDS LOOKING AT THAT. NOT SO MUCH ANALYZING SUBSCRIPTIONS, BUT THE TEAM DETERMINED, HOW DO YOU KNOW THAT YOU HAVE THEM ALL? HOW DO YOU KNOW YOU LOOKED AT THE MALL? YOU CAN IMAGINE WITH AN ENTITY OF THIS SIZE IT IS A CONSIDERABLE UNDERTAKING, BUT THAT IS THE BIGGEST CHANGE IF YOU WILL THAT WE HAD THIS YEAR. TO GIVE YOU OTHER PERSPECTIVE WE CALL IT FIELDWORK. WE SPENT FOUR WEEKS OF FIELDWORK CONDUCTING YOUR AUDIT. IT IS A COMBINATION OF ON-SITE AND REMOTE AUDITING. OUR LAST DAY OF FIELDWORK WAS APRIL 5 AND AFTER WE GET DONE WITH FIELDWORK WE TAKE A LOOK AT YOUR FINANCIAL STATEMENTS AND REVIEW OUR WORK, THINGS LIKE THAT. THE FIFTH THING TO NOTE IS WE DID NOT IDENTIFY ANY ADJUSTING JOURNAL ENTRIES AS PART OF THIS YEAR'S AUDIT. AGAIN, THAT SPEAKS TO PREPAREDNESS AND ABILITIES OF YOUR MANAGEMENT TEAM. NEXT SLIDE, PLEASE. OUR AUDIT IS PERFORMED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS. THOSE ARE THE STANDARDS WE ARE REQUIRED TO FOLLOW. IN ADDITION TO THAT WE ALSO HAVE TO AUDIT IN COMPLIANCE WITH GOVERNMENT AUDITING STANDARDS. THOSE ARE ADDITIONAL STANDARDS RELATIVE TO OUR CONTINUING PROFESSIONAL EDUCATION, THE SUPERVISION OF THE AUDIT TEAM, QUALITY CONTROL AND THE INDEPENDENCE OF THE AUDIT TEAM. WITH THE OBJECTIVE BEING REASONABLE ASSURANCE THAT YOUR FINANCIAL STATEMENTS ARE FREE FROM MATERIAL MISSTATEMENT. YOUR FINANCIAL STATEMENTS RECEIVED AN UNMODIFIED OPINION WHICH IS ALSO KNOWN AS A CLEAN OPINION, WHICH IS THE HIGHEST LEVEL OF ASSURANCE WE CAN PROVIDE AS YOUR AUDIT FIRM. NEXT SLIDE. SO IF WE WANT TO TAKE A LOOK AT THE AUDIT, JUST TO GIVE YOU SOME PERSPECTIVE AS TO WHAT DO WE LOOK AT, WHAT DO WE DO? I WOULD SAY ROUGHLY 30% OF WHAT WE DO IS SPECIFIC TO INTERNAL CONTROLS AND TESTING THOSE INTERNAL CONTROLS. MOST OF WHICH, NOT SURPRISINGLY, WOULD BE IN THE INFORMATION TECHNOLOGY AREA. SO MUCH SO THAT WE HAVE A CERTIFIED INFORMATION SYSTEMS AUDITOR WHO CONDUCTS THAT TESTING AND THEY FUNCTION AS PART OF OUR AUDIT TEAM. THAT IS ABOUT 30% OF WHAT WE DO. 40% OF WHAT WE DO IS SPECIFIC TO WHAT WE CALL SUBSTANTIAL TESTING. THAT IS THE NUTS AND BOLTS. THAT WOULD BE TAKING A LOOK AT SOURCE DOCUMENTS, WHETHER THEY BE INVOICES, INDIVIDUAL BILLS. RETIREMENTS. THINGS LIKE THAT. THAT IS ABOUT 40% OF WHAT WE DO AND THEN THE LAST 30% IS SPECIFIC TO TAKING A LOOK AT YOUR FINANCIAL REPORT AND THE PLANNING THAT GOES INTO OUR AUDIT. WHAT I HAVE DONE HERE IS OUTLINED THE MAIN AREAS OF AUDIT FOCUS. I THINK IF YOU LOOKED AT YOUR FINANCIAL STATEMENTS NONE OF THESE SHOULD BE A SURPRISE. THE BIGGEST ITEM ON YOUR BALANCE SHEET IS GOING TO BE YOUR FIXED ASSETS. SO WE DO SPEND A SIGNIFICANT AMOUNT OF TIME AUDITING FIXED ASSETS. THE INFORMATION TECHNOLOGY REPORT. THAT SETS THE BASE FOR YOUR INTERNAL CONTROLS AND MOST OF YOUR INTERNAL CONTROLS ARE INFORMATION TECHNOLOGY-BASED. REVENUES, ACCOUNTS RECEIVABLE, BILLING. ENVIRONMENTAL LIABILITIES. I MENTIONED LEASES AND SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS. OBVIOUSLY EXPENDITURES AND ACCOUNTS PAYABLE. PAYROLL AND FINANCIAL REPORTING. THESE ARE THE MAIN AREAS OF AUDIT FOCUS. SO I MENTIONED EARLIER THAT WE DO PROVIDE AN OPINION ON YOUR FINANCIAL STATEMENTS AND I TALKED ABOUT INTERNAL CONTROLS, BUT I DO WANT TO STRESS WE DO NOT PROVIDE AN OPINION ON INTERNAL CONTROLS. HOWEVER, AS AUDITORS WE ARE REQUIRED TO IDENTIFY TO YOU IF WE IDENTIFY ANY MATERIAL WEAKNESSES OR SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROLS. AS PART OF OUR AUDIT WE CATEGORIZE THE SEVERITY OF INTERNAL CONTROL BREAKDOWNS OR LACK OF INTERNAL CONTROLS. THE MOST SEVERE WOULD BE A MATERIAL WEAKNESS AND THAT IS ANY BREAKDOWN IN CONTROLS THAT WOULD LEAD TO MORE THAN REASONABLE POSSIBILITY THAT YOUR FINANCIAL STATEMENTS WOULD BE MATERIALLY MISSTATED DUE TO THE BREAKDOWN AND WE DID NOT IDENTIFY ANY MATERIAL WEAKNESSES. THE NEXT CATEGORY DOWN, LESS SEVERE THAN MATERIAL WEAKNESS, BUT STRONG ENOUGH THAT IT WARRANTS YOUR ATTENTION. IT IS A SIGNIFICANT DEFICIENCY AND AGAIN WE DID NOT IDENTIFY ANY SIGNIFICANT DEFICIENCIES IN THE INTERNAL CONTROL STRUCTURE. I WILL SAY THAT AS PART OF ANY AUDIT WE WILL ALMOST ALWAYS HAVE MINOR CONTROL IMPROVEMENTS OR INDUSTRY BEST PRACTICES, THINGS LIKE THAT, AND WE WILL COMMUNICATE THOSE WITH MANAGEMENT. HOWEVER, JUST A NOTE THAT WE DID NOT IDENTIFY ANYTHING THAT WE WOULD DEEM TO BE MATERIAL. NEXT SLIDE. GOING THROUGH THE REQUIRED COMMUNICATIONS THAT WE HAVE WITH YOU AS GOVERNANCE, ONE THING TO NOTE IF YOU HAVEN'T LOOKED AT THE STATEMENTS, ONE THING I WOULD URGE YOU TO TAKE A LOOK AT CLOSELY WOULD BE THE SIGNIFICANT ACCOUNTING POLICIES. AGAIN, ACCOUNTING POLICIES THAT YOUR ORGANIZATION USES, AN EXAMPLE OF WHICH WOULD BE YOUR CAPITALIZATION POLICY. WE AS AUDITORS ARE REQUIRED TO LOOK AT THOSE POLICIES AND TO MAKE SURE WE ARE ENGAGED TO MAKE SURE THAT THEY APPLY WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND NOT ONLY THAT THEY COMPLY, BUT THAT YOU ARE FOLLOWING THOSE. THAT IS IN NOTE ONE. I OFTEN GET ASKED BY GOVERNING BODIES WHEN LOOKING AT FINANCIAL STATEMENTS OR WHEN USERS OF FINANCIAL STATEMENTS OR MAKING DECISIONS, WHAT AREAS SHOULD THEY PAY SPECIFIC ATTENTION TO? I WOULD SAY THOSE AREAS ALMOST ALWAYS DEAL WITH SIGNIFICANT ESTIMATES. SO MUCH SO THAT WE ARE REQUIRED TO COMMUNICATE IN THE FINANCIAL STATEMENTS, WHAT ARE THE SIGNIFICANT ESTIMATES? YOU HAVE QUITE A FEW. ONE WOULD BE YOUR NET LIABILITY. IT IS A LARGE NUMBER DETERMINED BY ACTUARIES. YOUR SELF-INSURANCE CLAIMS. YOUR ALLOWANCE ON YOUR BILLING. YOUR NET OTHER POSTEMPLOYMENT BENEFITS. UNBILLED REVENUES AND THEN ENVIRONMENTAL REMEDIATION LIABILITIES. SO WHEN WE TAKE A LOOK AT THESE ESTIMATES, FOR INSTANCE I SIT HERE AND TELL YOU THAT THE NUMBER WITHIN YOUR FINANCIAL AID -- FINANCIAL STATEMENTS IS 100% ACCURATE. I CAN'T. WHAT I CAN TELL YOU IS WITHIN THE STATEMENTS IT PROVIDES A RANGE. IT TAKES A LOOK AT YOUR DISCOUNT RATE. IT SHOWS BASED ON AN ACTUARY DISCOUNT RATE AND ONE PERSONAGE MORE AND ONE PERCENTAGE LESS, WHAT THE RANGE OF THAT ESTIMATE WOULD BE. I CAN TELL YOU MORE THAN LIKELY HER ACTUAL LIABILITY PROBABLY FALLS SOMEWHERE IN THAT RANGE. I WOULD ALSO SAY THAT NUMBER FLUCTUATES SIGNIFICANTLY WITH THE MARKET. IF THE MARKET GOES UP, LIABILITY GOES DOWN. YOU WILL SEE SIGNIFICANT SWINGS. AGAIN, I JUST WANT TO ILLUSTRATE THE SENSITIVITY OF SOME OF THESE LIABILITIES. NEXT SLIDE. IF WE HAD ANY SIGNIFICANT DIFFICULTIES ENCOUNTERED DURING THE AUDIT, I WOULD DISCLOSE THOSE. JUST NOTE IF WE DID, IF WE HAD ANY SIGNIFICANT FINDINGS OR SIGNIFICANT CONCERNS OR DETECTION OF FRAUD, THIS WOULD NOT BE THE FIRST TIME YOU WOULD BE HEARING ABOUT IT. I WOULD REACH OUT TO YOU SEPARATELY BEFORE THE MEETING TO HAVE THOSE DISCUSSIONS, BUT WE DID NOT IDENTIFY ANY SIGNIFICANT ITEMS DURING THIS AUDIT. OFTENTIMES MANAGEMENT TEAMS WILL IDENTIFY AND SAY INSIGNIFICANT AUDIT ADJUSTMENTS, NOT AUDIT ADJUSTMENTS, BUT ADJUSTMENTS TO YOUR BOOKS AND RECORDS. HOWEVER, GIVEN THAT THEY ARE INSIGNIFICANT THEY WILL NOT OPEN THE PRIOR YEAR STATEMENTS TO REPORT THOSE INSIGNIFICANT AMOUNTS. WHAT WE NEED TO DO AS AN ACCOUNTING FIRM AND AUDIT FIRM IS TAKE A LOOK AT WHAT THOSE ARE AND GET A LISTING OF THOSE TO MAKE SURE THAT IN TOTALITY THEY DO NOT BECOME MATERIAL. ONE OF THE THINGS YOU HAVE IN YOUR COMMUNICATIONS IS A LISTING OF THOSE WAIVED INJURIES. THOSE ENTRIES WERE CREATED BY YOUR MANAGEMENT TEAM. THEY PROVIDED THOSE TO OUR ATTENTION. WE LOOKED AT THEM AND DETERMINED THOSE ENTRIES WERE IMMATERIAL, BUT JUST NOTE THAT YOU WILL SEE THAT IN THE COMMUNICATION LETTER AS IT IS A REQUIREMENT, BUT WE DID NOT IDENTIFY ANY ADJUSTMENTS AS PART OF THE AUDIT. IF WE HAD ANY DISAGREEMENTS WITH YOUR MANAGEMENT TEAM ON AN ACCOUNTING POLICY OR ANY MATTER DURING THE AUDIT WE WOULD COMMUNICATE THOSE AND WE DID NOT. AND AGAIN WE DID NOT HAVE ANY OTHER SIGNIFICANT FINDINGS OR ISSUES, SO AGAIN, A VERY STRAIGHTFORWARD, CLEAN AUDIT YEAR. I MENTIONED BEFORE THE BIGGEST THING GOVERNING BODIES LOOK AT IS DUE THE AUDITORS HAVE A LOT OF CORRECTED ENTRIES? DO THEY FIND ERRORS? WE DID NOT IDENTIFY JOURNAL ENTRIES. IN THE LETTER I TALKED ABOUT BEFORE IN THE REQUIRED COMMUNICATIONS WE HAVE A LETTER CALLED MANAGEMENT REPRESENTATIONS. WHAT IT DOES IS IT OUTLINES MANAGEMENTS RECOMMENDATIONS THAT THEY MAKE AS PART OF THE AUDIT PROCESS. IT WOULD INCLUDE THEIR THOUGHTS ON INTERNAL CONTROLS. THE ACCOUNTING POLICIES WE TALK ABOUT. FRAUD. THINGS TO THAT EXTENT. AGAIN IF YOU CAN I NEED YOU TO TAKE A LOOK AT THAT TO SEE WHAT TYPES OF REPRESENTATIONS YOUR TEAM IS MAKING AS PART OF THE AUDIT PROCESS IN FINANCIAL STATEMENTS. IF YOUR TEAM HAD ANY CONSULTATIONS WITH OTHER ACCOUNTANTS, FOR INSTANCE IF THEY HAD QUESTIONS ON A QUESTIONABLE ACCOUNTING TRANSACTION OR SOMETHING OF THAT EXTENT AND THEY REACHED OUT TO A PEER AUDIT FIRM OF OURS, THAT FIRM WOULD BE REQUIRED TO COMMUNICATE TO US SO WE UNDERSTAND THAT THESE COMMUNICATIONS TOOK PLACE AND WE WERE NOT NOTIFIED OF ANY COMMUNICATIONS LIKE THAT. ONE THING YOU MAY HEAR ABOUT IN THE ACCOUNTING PROFESSION AND AUDIT PROFESSION IS THE AUDITOR INDEPENDENCE. ONE THING I NEED TO DISCLOSES EVERY AUDITOR IS INDEPENDENT IN FACT AND APPEARANCE FROM SEATTLE CITY LIGHT. AND LASTLY WE WANT TO THANK YOU FOR ALLOWING US TO SERVE THIS ORGANIZATION. I MENTIONED EARLIER, AGAIN, WE THINK YOUR MANAGEMENT TEAM AND THEIR ENTIRE TEAM DID A GREAT JOB. ONE THING IF YOU TALK TO THOSE FOLKS, THEY DEFINITELY WOULD PROBABLY TELL YOU HEY, YOU KNOW, WE ARE NOT JUST BEING AUDITED THE COUPLE OF WEEKS THAT BAKER TILLY IS ON SITE. IT TRULY IS A YEAR-ROUND AUDIT EFFORT WHICH CAN BECOME EXTREMELY TAXING FOR YOUR TEAM. HOWEVER IT IS BECAUSE OF THAT PROCESS THAT IT IS A SEAMLESS, EFFICIENT AND EFFECTIVE AUDIT. AS EVIDENCED BY NO AUDIT ADJUSTMENTS, THINGS LIKE THAT. IF DURING THE COURSE OF THE YEAR THEY DO HAVE QUESTIONS, THEY REACH OUT AND WE HAVE DISCUSSIONS ON A TIMELY BASIS, SO AGAIN THAT IS PROBABLY THE DRIVER OF WHY THIS AUDIT WENT SO SMOOTHLY. AGAIN WE APPRECIATE EVERYONE'S EFFORTS IN THAT REGARD. SO WITH THAT I WILL OPEN IT UP TO ANY QUESTIONS YOU ALL MAY HAVE. >> COLLEAGUES, ANY QUESTIONS OR COMMENTS? COUNCILMEMBER SAKA. >> THANK YOU, MADAM CHAIR AND THANK YOU FOR THIS OVERVIEW OR PRESENTATION OF THE AUDIT. I AM A HUGE FAN OF AUDITS, BECAUSE THEY HELP SHED A BRIGHT LIGHT OF TRANSPARENCY AND HIGHLIGHT WHAT IS WORKING WELL IN SOME CASES AND WHAT IS NOT WORKING SO WELL AND OPPORTUNITIES. BECAUSE EVERYTHING IS SUBJECT TO ITERATION AND IMPROVEMENT. WHETHER IT IS A PROCESS, PROGRAM, SERVICE, ANYTHING. INDIVIDUALS INCLUDED. MYSELF INCLUDED. JUST CURIOUS TO BETTER UNDERSTAND WHAT YOU MEANT. THIS IS TRUE INDEPENDENT, NON-CITY AUDITORS OFFICE, BUT WHAT DO YOU MEAN BY IT IS INDEPENDENT IN FACT AND APPEARANCE? IT SOUNDS LIKE A TECHNICAL TERM SPECIFIC TO THE INDUSTRY, BUT IT IS AN IMPORTANT DISTINCTION. I THINK I UNDERSTAND, BUT I WANT TO TEASE IT OUT WITH YOU. >> SO IN FACT, TO GIVE YOU AN EXAMPLE IN FACT. IF WE CAME IN AND DESIGNED AND IMPLEMENTED AN INTERNAL CONTROL FOR SEATTLE CITY LIGHT. LET'S SAY INFORMATION TECHNOLOGY. WE HELP IMPLEMENT SOFTWARE. WE SET UP THE CONTROLS AND WE ALSO CAME IN, MY GROUP CAME IN AT BAKER TILLY AND AUDITED THOSE CONTROLS THAT WE SET UP, THAT WOULD BE A VIOLATION BECAUSE WE ARE NOT INDEPENDENT BECAUSE WE WOULD BE AUDITING OUR OWN WORK. WHAT WE LOOK AT HIS CONTROLS. THAT WOULD BE A VIOLATION IN FACT. SO LET'S SAY THAT WE DID A LOT OF WORK FOR THE CITY. DID NOT AFFECT THE AUDIT. WE WERE NOT TAKING PLACE OF MANAGEMENT. WE WERE NOT MAKING MANAGEMENT DECISIONS. WE WERE NOT TESTING OUR OWN WORK, BUT WE WERE DOING ENOUGH WORK AT THE CITY WHERE SOMEONE FROM THE OUTSIDE WOULD SAY BAKER TILLY SPENT 1400 HOURS ON THE AUDIT, BUT THERE FIRM WORKED FOR CITY LIGHT 3000 HOURS. EVEN THOUGH WHAT WE MAY HAVE DONE, MINOR CONSULTING THINGS THAT DID NOT VIOLATE INDEPENDENCE RULES, SOMEONE FROM THE OUTSIDE MAY LOOK AT IT AND SAY HOW CAN THIS FIRM BE INDEPENDENT WHEN THEY DO MORE WORK FOR CITY LIGHT -- DID NOT VIOLATE INDEPENDENCE AT ALL, BUT FROM OUTSIDE APPEARANCE IT MIGHT LOOK LIKE THERE IS AN INDEPENDENCE ISSUE. ONE OF THE THINGS WE NEED TO SAY IS IF WE WERE TO STEP BACK AND LOOK AT WHAT WE HAVE DONE FOR THE CITY, EVEN FROM AND APPEARANCE STANDPOINT WE DO NOT VIOLATE INDEPENDENCE. >> WITH RESPECT TO INDEPENDENCE AND APPEARANCE, PRESERVING INDEPENDENCE AND APPEARANCE YOU ARE SAYING THAT IF YOUR FIRM HAPPENED TO HAVE CONTRACTED WITH CITY LIGHT FOR UNRELATED CONSULTING SERVICES, AND YOU HAVE APPROPRIATE, NO DOUBT YOU DO HAVE APPROPRIATE INTERNAL FIREWALLS IN PLACE AND TEAMS AND PEOPLE AND KNOWLEDGE, MANAGEMENT SYSTEMS. THAT NOT WITHSTANDING THE CONSULTING SERVICES, THAT IF YOU GO AND PERFORM AN AUDIT THERE MIGHT STILL BE AND APPEARANCE. >> RIGHT AND ONE OF THE THINGS THEY MAKE US DO, LET'S SAY YOU ARE ENGAGED TO DO THIS SERVICE AND SOMEONE IS LIKE THAT'S FINE, IT DOES NOT VIOLATE INDEPENDENCE. YOU COULD ADD ON FOUR, FIVE, SIX MORE SERVICES. INDIVIDUALLY THEY ARE FINE, BUT IF YOU LOOK AT IT IN AGGREGATE SOMEONE MIGHT SAY THE SCALE MAY HAVE TIPPED. APPEARANCE WISE YOU ARE PROBABLY NOT INDEPENDENT. SO WE HAVE TO ON AN ANNUAL BASIS. INDEPENDENCE IS SUCH A BIG THING THAT ANNUALLY WE HAVE TO SIT DOWN AND ASSESS, LOOK THROUGH BILLING RECORDS AND DO ALL OF THESE THINGS TO MAKE SURE OUR ENTIRE FIRM IN TOTALITY HAS NOT DONE THAT. THE GOOD THING HERE IS WE DID NOT PROVIDE ANY OTHER SERVICES TO CITY LIGHT ASIDE FROM THE AUDIT. >> GREAT. THANK YOU FOR ENLIGHTENING ME WITH THAT. OTHER QUESTIONS, COMMENTS? MADAM CHAIR. >> GREAT. I AM GLAD TO HEAR, COMING INTO WORK TODAY WE ARE HEARING ABOUT THE WORLDWIDE I.T. OUTAGE AND GLAD IT DOES NOT AFFECT US. THANK YOU FOR BEING HERE AND THANK YOU FOR FLYING UP HERE AND FOR ALL OF YOUR WORK. >> THANK YOU. >> AS THE GOVERNING BODY RECEIVES THIS REPORT EVERY YEAR, WE ARE THANKFUL FOR THIS OVERSIGHT AND ACCOUNTABILITY. SO IF THERE ARE NO FURTHER QUESTIONS, WE WILL MOVE ON TO Res 32138: An ordinance relating to the City Light Department OUR NEXT ITEM OF BUSINESS. WILL THE CLERK PLEASE READ OUR THIRD ITEM INTO THE RECORD? >> AGENDA ITEM THREE, RESOLUTION 32138, A RESOLUTION RELATING TO THE CITY LIGHT DEPARTMENT ACKNOWLEDGING AND APPROVING THE 2024 INTEGRATED RESOURCE PLAN PROGRESS REPORT AS CONFORMING WITH THE PUBLIC POLICY OBJECTIVES OF THE CITY OF SEATTLE AND THE REQUIREMENTS OF THE STATE OF WASHINGTON AND APPROVING THE PROGRESS REPORT FOR THE BIENNIUM SEPTEMBER 2024 THROUGH AUGUST 2026, FOUR BRIEFING, DISCUSSION, AND POSSIBLE VOTE. >> SO AS PRESIDING OFFICER I AM NOW OPENING THE PUBLIC HEARING ON RESOLUTION 32138. CLERK, HOW MANY SPEAKERS ARE SIGNED UP FOR THIS PUBLIC HEARING? >> CHAIR, WE HAVE NO REMOTE SPEAKERS AND NO IN-PERSON IS NO OF THE PUBLIC REGISTERED FOR THIS PUBLIC HEARING, THIS PUBLIC HEARING IS NOW CLOSED. HOWEVER, I BELIEVE IT WILL BE IMPORTANT TO SCHEDULE ADDITIONAL OPPORTUNITIES FOR PUBLIC INPUT SO WE HAVE AMPLE TIME TO GATHER MEANINGFUL COMMUNITY FEEDBACK. THIS INTEGRATED RESOURCE PLAN IS CRITICAL TO HOW SEATTLE CITY LIGHT ADDRESSES CHANGES FOR POWER NEED, EXISTING CONSUMPTION AND NEW ENERGY REQUIREMENTS SO IT IS IMPORTANT THAT CUSTOMERS HAVE TIME TO DIGEST AND UNDERSTAND THIS INFORMATION AS IT WILL IMPACT THE UTILITY COST AND ULTIMATELY HOW RATES ARE SET. SO WHEN READY, PLEASE INTRODUCE YOURSELVES AND BEGIN. >> THANK YOU VERY MUCH, CHAIR WOO. WE WILL INTRODUCE OURSELVES AS WE GO ALONG IN OUR PRESENTATION. I APPRECIATE YOU AND THE MEMBERS OF THE COMMITTEE FOR BEING HERE TODAY AS WE PRESENT THE SEATTLE CITY LIGHT 2024 INTEGRATED RESOURCE PLAN UPDATE. CITY LIGHTS INTEGRATED RESOURCE PLAN OR IRP IS A LONG-TERM STUDY OF OUR EXPECTED BALANCE OF FUTURE LOADS WITH THE AVAILABLE ENERGY RESOURCES TO SERVE THOSE LOADS. THE IRP ADDRESSES CHANGES IN CUSTOMER'S POWER NEEDS, EXISTING POWER SUPPLY AND NEW ENERGY TECHNOLOGIES AND COSTS OVER THE 22 YEAR STUDY PERIOD, WHICH FOR US IS FROM 2024 THROUGH 2045. IRP'S ARE COMPLETED TO ENSURE WE CAN RELIABLY, SUSTAINABLY AND ECONOMICALLY MEET OUR FUTURE LOADS. CITY LIGHT PRODUCES A FULL IRP EVERY FOUR YEARS WITH A PROGRESS REPORT COMPLETED AT THE TWO-YEAR MARK AND THIS IS ONE OF THOSE. THIS UPDATE REFRESHES CRITICAL INPUT SUCH AS THE LOAD FORECAST AND ENERGY MARKET FORECAST, WHICH REFLECT THE EVOLVING REGIONAL ENERGY LANDSCAPE. JUST AS WITH THE FULL IRP, WE ALSO ENGAGE WITH A GROUP OF EXTERNAL STAKEHOLDERS THROUGHOUT THE DEVELOPMENT OF THE PROGRESS REPORT TO ENSURE CUSTOMER, OWNER'S NEEDS AND PRIORITIES ARE ADDRESSED THROUGH THE IRP AND TO BE SURE WE STAY APPRISED OF THE LATEST INDUSTRY AND TECHNOLOGICAL DEVELOPMENTS IN SEATTLE AND THE SURROUNDING COMMUNITIES. CONSISTENT WITH THE 2022 IRP AND RECENTLY COMPLETED 2024 MANAGEMENT POTENTIAL ASSESSMENT, THE 2024 IRP PROGRESS REPORT SHOWS INCREASING LEVELS OF LOAD GROWTH. THE PRIMARY DRIVERS OF THE ANTICIPATED LOAD GROWTH ARE TRANSPORTATION AND BUILDING ELECTRIFICATION, IN ADDITION TO ECONOMIC AND POPULATION GROWTH. INCREASED LOAD HAS INCREASED POWER NEEDS WHICH WILL REQUIRE ADDING WIND, SOLAR, BATTERY, AND CLEAN FIRM ENERGY RESOURCES TO CITY LIGHT'S PORTFOLIO. CITY LIGHT IS A MUNICIPALLY DRIVEN NOT-FOR-PROFIT UTILITY THAT WORKS TO ENSURE WE RELIABLY PUT LIGHTS ON FOR CUSTOMERS IN A WAY THAT IS RESPONSIBLE, WHILE ALSO KEEPING RATES LOW. I WOULD NOW LIKE TO HAND IT OVER TO OUR PRESENTERS TODAY. WITH ME IS SIOBHAN DOHERTY, POWER SUPPLY OFFICER ON THE END. PAUL DOCKERY, SENIOR MANAGER OF ENERGY RESOURCE STRATEGY AND PLANNING, AND VERENE MARTIN, DATA SCIENTIST, STRATEGIC ADVISOR RESOURCE PLANNING AND ANALYSIS. THANK YOU. >> GOOD MORNING. THANK YOU FOR YOUR TIME THIS MORNING. TODAY WE ARE GOING TO PRESENT ON OUR INTEGRATED RESOURCE PLAN PROGRESS REPORT. AS MENTIONED THIS IS BOTH A PLANNING TOOL AS WELL AS A REGULATORY REQUIREMENT. SO TODAY WE ARE GOING TO ASK YOU TO APPROVE THE RESOLUTION THAT ACKNOWLEDGES AND APPROVES THE 2024 IRP PROGRESS REPORT AND ALLOWS IT TO BE SUBMITTED TO THE DEPARTMENT OF COMMERCE BY SEPTEMBER 1, 2024. TODAY WE WILL WALK THROUGH THAT PROGRESS REPORT AND WE ALSO INCLUDED THE NARRATIVE IN YOUR MATERIALS. TO START WE WANT TO LEVEL SET ON THE PURPOSE OF THE INTEGRATED RESOURCE PLAN. A IRP IS AN OPPORTUNITY FOR CUSTOMERS AND STAKEHOLDERS TO SHARE THEIR VISION. A IRP IS A STUDY OF OPTIONS FOR MEETING ELECTRICITY NEEDS FOR CUSTOMERS THAT FIND SOLUTIONS THAT BALANCES A VARIETY OF PRIORITIES. A IRP IS NOT INTENDED TO BE A SHOPPING LIST FOR SPECIFIC RESOURCE ACQUISITIONS. ACQUIRING RESOURCES IS A SEPARATE AND RELATED UTILITY FUNCTION. ALSO TODAY'S REQUEST IS NOT AN APPROPRIATION OF FUNDS FOR RESOURCES. WHEN WE DO ACQUIRE RESOURCES WE WILL COME BACK TO CITY COUNCIL TO REQUEST THOSE RESOURCES. WHAT IT IS IS A PLAYBOOK THAT DESCRIBES THE TYPES OF RESOURCES TO PURSUE. WE ARE LOOKING AT A VARIETY OF CHANGING CIRCUMSTANCES OVER THE NEXT 20 YEARS AND THE DELIVERABLE IS THE PLAYBOOK OF HOW WE MEET THOSE LOADS OVER THAT STUDY PERIOD . AS MENTIONED, THE INTEGRATED RESOURCE PLAN IS AN OPPORTUNITY FOR CUSTOMERS AND STAKEHOLDERS TO SHARE THEIR VISION FOR FUTURE POWER SUPPLY. WE ENGAGE WITH AN ADVISORY PANEL. THE ADVISORY PANEL IS A GROUP OF 11 ADVISORS WHO PROVIDE FEEDBACK ON THE DEVELOPMENT OF THE RESOURCE PLAN AND POTENTIAL ASSESSMENT AND IT IS COMPRISED OF INDIVIDUALS REPRESENTING CUSTOMERS, ENVIRONMENTAL ORGANIZATIONS, REGIONAL ORGANIZATIONS AND ACADEMICS. THE PANEL WAS CONVENED FOR SEVEN MEETINGS AND INDUSTRY EXPERTS CAN DEDICATE TIME INVESTIGATING CONSUMPTIONS AND RESOURCE INPUTS TO ENSURE THAT WE HAVE INPUT FROM A DIVERSE GROUP OF ADVISORS THAT REPRESENT OUR CUSTOMER INTERESTS. NOW I WILL HANDED OFF TO PAUL TO GIVE MORE OF THE DETAILS. >> THANK YOU. SO AS SIOBHAN MENTIONED IN INTEGRATED RESOURCE PLAN IS AN EVALUATION OF POWER NEEDS AND POWER SUPPLY RESOURCE NEEDS. TOWARD THAT END EVERY TWO YEARS SEATTLE CITY LIGHT PRODUCES A 20 YEAR PLAN THAT IS APPROVED BY CITY COUNCIL AND FILED WITH THE WASHINGTON DEPARTMENT OF COMMERCE BY SEPTEMBER 1. FOR THE EVALUATION OF LOADS AND RESOURCES IN THE INTEGRATED RESOURCE PLAN, WE USE 30 YEARS OF WEATHER TRACES TO SIMULATE VALUES FOR THE 20 YEAR STUDY PERIOD. 20 YEARS OF SIMULATED ANNUAL LOADS ARE COMPARED TO 20 YEARS OF FUTURE SIMULATED GENERATION FROM THE RESOURCE PORTFOLIO TO CHECK WHETHER CITY LIGHT'S RESOURCE PORTFOLIO CAN PRODUCE POWER GREATER THAN OR EQUAL TO THE POWER NEEDED BY CUSTOMERS. THE RESOURCE PLAN IS A REQUIREMENT OF WASHINGTON LAW WHICH REQUIRES ALL ELECTRIC UTILITIES WITH MORE THAN 25,000 CUSTOMERS TO DEVELOP COMPREHENSIVE RESOURCE PLANS EVERY TWO YEARS. STRATEGIES TO MEET CUSTOMER ELECTRICITY NEEDS IN THE SHORT-TERM AND THE LONG-TERM . IT GETS APPROVED BY THE GOVERNING BODY AND FILED WITH THE WASHINGTON DEPARTMENT OF COMMERCE BY SEPTEMBER 1. CITY LIGHT IS REQUIRED TO FILE A RESOURCE PLAN EVERY TWO YEARS THAT IS EITHER A WHOLE, INTEGRATED RESOURCE PLAN OR A PROGRESS REPORT. PROGRESS REPORT REFLECTS CHANGING CONDITIONS AND PROVIDES UPDATES ON THE PROGRESS OF INTEGRATED RESOURCE PLANS. CITY LIGHT PRODUCED ITS LAST FULL IRP IN 2022 AND WILL PRODUCE THE NEXT ONE IN 2026. THE 2024 RESOURCE PLAN IS A PROGRESS REPORT THAT ADDRESSES CHANGES IN CUSTOMER POWER NEEDS, CHANGES IN OUR EXISTING POWER SUPPLY AND CHANGING ASSUMPTIONS ON ENERGY RESOURCE TECHNOLOGIES AND COST OVER THE 20 YEARS FROM 2024 TO 2045. THE ANALYSIS FOR THE PROGRESS REPORT STARTED WITH THE ENERGY EFFICIENCY TARGETS FROM THE 2024 DEMAND-SIDE ASSESSMENT APPROVED BY CITY COUNCIL. THE 2022 IRP AND 2024 PROGRESS REPORT THAT WE ARE PRESENTING ON TODAY USE THE SAME TOOLS, THE SAME PROCESSES AND SIMILAR ASSUMPTION WITH THE MAIN DIFFERENCE BETWEEN THEM, THE LOAD FORECASTS. THE LOAD FORECAST USED IN THE 2024 INTEGRATED RESOURCE PLAN REFLECTS NEW POLICIES FOR BUILDING ELECTRIFICATION AND TRANSPORTATION ELECTRIFICATION. WHEN WE REFRESHED THIS IRP, AS I MENTIONED THE BIGGEST AND MOST CONSEQUENTIAL CHANGE COMES FROM A SIGNIFICANT INCREASE IN THE LOAD FORECAST OVER THE 20 YEAR STUDY PERIOD. THIS COMPARES LOAD FORECAST USED IN THE LAST IRP TO THE LOAD FORECASTS WE ARE USING FOR THIS PROGRESS REPORT. THE PLOT SHOWS MEGAWATTS ON THE Y AXIS AND EARS ON THE X AXIS WITH LINES FOR AVERAGE LOADS AND MEGAWATTS AND HOURLY PEQUOT'S -- HOURLY PEAK LOADS IN MEGAWATTS. COMPARED ON THE RIGHT SIDE IN SHADES OF YELLOW, BROWN, AND RED. IN 2024, ONE OF THE LATEST YEARS INCLUDED IN THE 2022 IRP AND PROGRESS REPORT, CITY LIGHT'S FORECAST ANNUAL AVERAGE LOADS INCREASED BY 238 AVERAGE MEGAWATTS AND THE PEAK INCREASED BY 580 MEGAWATTS BETWEEN THE TWO REPORTS. THE INCREASE IN PEAK LOADS IS DRIVEN BY A DATED ASSUMPTIONS OF BUILDING AND TRANSPORTATION SECTORS. I WILL ACTUALLY HAND IT TO VERENE MARTIN TO DISCUSS HOW THIS LOAD FORECAST IS CHANGING THE NEEDED POWER SUPPLIES TO MEET THAT LOAD. >> THANKS, PAUL. THE INCREASE IN FORECAST ANNUAL AVERAGE LOADS AND ESPECIALLY PEAK LOADS ARE THE BIGGEST DRIVERS OF THE LARGE INCREASE IN RESOURCE NEEDS WE SEE IN THE 2024 IRP PROGRESS REPORT COMPARED TO THE 2022 IRP. THIS TABLE SUMMARIZES THE MAGNITUDE OF CITY LIGHT'S NEEDED WHOLESALE RESOURCE EDITIONS AND THE RECOMMENDED MIX OF RESOURCES. WHAT WE MEAN BY WHOLESALE RESOURCE IS SUPPLY-SIDE POWER GENERATION PROJECTS LIKE A LARGE WIND FARM OR SOLAR PROJECT. ON THE LEFT SIDE OF THE TABLE ARE THE NEEDED RESOURCES IDENTIFIED AND IN THE 2022 FULL IRP AND ON THE RIGHT SIDE OF THE RESOURCES IDENTIFIED IN THE MILESTONES FOR THE PROGRESS REPORT. THE TIME FRAMES REFLECT REPORTING PERIODS REQUIRED BY THE IRP. THE FIRST REPORTING PERIOD FOR THE 2022 FULL IRP WAS 2022 THROUGH 2031 AND THE FIRST 10 YEARS FOR THE REPORT WAS 2024 THROUGH 2033. WHERE THE 2022 REPORT SHOWED WE NEEDED 400 MEGAWATTS IN THE FIRST 10 YEARS OF THE STUDY PERIOD, THE 2024 IRP ISSUING WE NEED 1845 MEGAWATTS IN THE FIRST 10 YEARS OF THE STUDY PERIOD. THAT IS AN INCREASE OF MORE THAN A FACTOR OF FOUR IN THE NEXT 10 YEARS. AS A NOTE, THOUGH, AS PART OF THE PROGRAM WE RECENTLY EXECUTED CONTRACTS FOR 87 MEGAWATTS OF SOLAR, SO WE ALREADY MADE A LITTLE PROGRESS. NEXT SLIDE, PLEASE. THE WHOLESALE RESOURCES NEEDED THAT WERE SHOWN IN THE LAST SLIDE ARE IN ADDITION TO THE CONSERVATION RESOURCES IDENTIFIED FOR THE 2022 AND 2024 DEMAND-SIDE ASSESSMENTS WHICH WERE USED AS INPUTS TO THE 2022 FULL IRP AND THE PROGRESS REPORT, RESPECTIVELY. CONSERVATION RESOURCES ENCOMPASS ANY SOURCE OF POWER FROM THE DEMAND-SIDE OR CUSTOMER SIDE. NOTABLY GOING FROM THE 2022 IRP TO THE 2024 IRP PROGRESS REPORT, CUSTOMER SOLAR PROGRAMS INCREASED SIGNIFICANTLY AND DEMAND RESPONSE PROGRAMS DECREASED, WHICH IS A RESULT OF A DEEPER ANALYSIS OF THE AVAILABILITY AND COST OF PROGRAMS DONE. THROUGH THE DEMAND-SIDE MANAGEMENT POTENTIAL ASSESSMENT. THE SUBTOTAL FOR CONSERVATION RESOURCES IS SHOWN AT THE BOTTOM OF THE TABLE AND THE GRAND TOTAL IS BROKEN OUT AT THE BOTTOM OF THE SLIDE. THE TOTAL NEEDED RESOURCE EDITIONS WAS JUST UNDER 700 MEGAWATTS, BUT NOW IN THE 2024 PROGRESS REPORT WE ARE SHOWING A NEED FOR MORE THAN 2500 MEGAWATTS OVER THE NEXT 20 YEARS. THAT IS THE MAIN TAKE AWAY FROM THE PROGRESS REPORT AND WHAT WE WANT TO SHOW IN THIS PRESENTATION. THE PROGRESS REPORT IS SHOWING A NEED FOR SIGNIFICANTLY MORE RESOURCES THAN THE PREVIOUS, FULL IRP IN 2022. IN ORDER TO ENSURE WE CAN RELIABLY MEET LOAD NOW THROUGH THE NEXT 20 YEARS. THE NEXT OF THE PRESENTATION IMPACTS WHAT IS DRIVING THE RESOURCE NEED AND THAT CAN BEST MEET THEIR DEMONSTRATED RESOURCE NEEDS. >> THANK YOU. IN THE 2024 PROGRESS REPORT THAT IS INCLUDED AS AN ATTACHMENT TO THE LEGISLATION, WE ARE UPDATING SOME GRAPHICS TO SHOW LOADS AND RESOURCES WITH HOURLY VALUES INSTEAD OF USING AVERAGE VALUES. MONTH OUR GRAPHS ARE A WAY TO SHOW HOW DAILY LOAD SHAPES CHANGE ACROSS THE YEAR AND ACROSS THE STUDY PERIOD. THIS GRAPHICS KEY SHOWN ON THE SLIDE IS AN INTRO TO MONTH OUR GRAPHS WHICH WE USE IN THE REPORT AND SLIDES IN THE PRESENTATION. THE STYLIZED DARK LINE IS THE LOAD SHAPE FOR A SAMPLE DAY OF THE MONTH. IT HAS ONE VALUE FOR EACH OF THE 24 HOURS IN A DAY. THE GRAPHICS HAVE LABELS FOR 1:00 A.M., 9:00, 5:00 AND A TICK MARK IS PRESENT FOR EVERY HOUR OF THE DAY. IT IS STYLIZED, THIS EXAMPLE IS STYLIZED TO LOOK LIKE A LOAD WITH A RAMP TO SHOW LOADS RAMPING EARLY IN THE MORNING FOR NIGHT AND EVENING. A LOWELL IN THE MIDDLE OF THE DAY WHILE PEOPLE ARE AT WORK AND A RAMP UP OF LOADS IN THE EVENING WHEN PEOPLE ARE GETTING HOME FROM WORK. THE BAND AROUND THE STYLIZED WINE IS A SIMULATION BAND THAT REFLECTS THE LOW AND HIGH VALUES FOR THAT HOUR OF THE DAY AND MONTH. MONTH-HOUR GRAPHICS IN THE UPCOMING SLIDES STRINGING TOGETHER 12 PANELS LIKE THIS, WHICH IS 12 24 HOUR PERIODS TO SHOW 288 TOTAL DATA POINTS WHICH IS MEANT TO REPRESENT THE LOAD SHAPES ACROSS THE YEAR. THE MONTH-HOUR GRAPH SHOWS THE SHAPE OF LOAD FOR A SINGLE DAY FOR EACH MONTH OF THE YEAR. WE THINK THIS IS IMPORTANT BECAUSE CHANGES TO THE ENERGY SYSTEM MEANS IT IS MORE IMPORTANT TO EVALUATE EVERY HOUR OF THE YEAR TO FIGURE OUT PERIODS OF STRESS AND UPDATING GRAPHS TO SHOW HOURLY VALUES AS A WAY WE ARE USING TO SHOW THE IMPORTANCE OF THAT SHIFT ANALYSIS. >> AS PAUL DESCRIBED, THIS IS THE MONTH-HOUR GRAPHIC WITH DATA FOR 24 HOURS OF THE DAY PLOTTED FOR EACH MONTH OF THE YEAR ALONG THE X AXIS AND MEGAWATTS ALONG THE Y AXIS. THE DATA PLOTTED ON THIS GRAPHIC SHOWS NEAR-TERM SIMULATED LOAD FOR THE IRP UPDATE COMPARED WITH ACTUAL EXTREME RECENT EVENTS. THE BLACK LINE IS THE MEDIAN SIMULATED LOAD FOR 2025 AND THE SHADED ORANGE BAND SHOWS THE RANGE OF SIMULATED LOAD VALUES FOR EACH MONTH OF 2025. WINTER MONTHS GENERALLY HAVE THE HIGHEST OVERALL LOADS OF THE YEAR DUE TO HEATING AND LIGHTING DEMAND AND WE HAVE TWO DAILY PEAKS AS PAUL DESCRIBED IN THE PREVIOUS SLIDE. IN THE SUMMARY YOU WILL NOTICE ONLY ONE PEAK INSTEAD OF TWO. PEOPLE TEND TO FOLLOW THE SAME ROUTINES, BUT IN THE SUMMER THE SUN IS UP EARLY AND ALSO UP LATE, SO THERE IS LESS LIGHTING AND HEATING DEMAND IN MORNINGS AND EVENINGS. ADDITIONALLY, SUMMER TEMPERATURES ARE WARM, BUT GENERALLY RELATIVELY MILD, SO OVERALL THERE IS LESS COOLING DEMAND IN THE SUMMER THAN HEATING DEMAND IN THE WINTER, KEEPING SUMMER LOADS LOWER THAN WINTER LOADS. THE DARK ORANGE LINES IN JANUARY, JUNE, AUGUST AND DECEMBER SHOW THE ACTUAL LOAD TRACE FOR SINGLE DAYS FROM THE LAST FEW YEARS WHERE SEATTLE'S SYSTEM WAS PARTICULARLY STRESSED. WE HAVE A LOAD TRACE DURING THE PEAK DAY OF THE HEAT DOME IN JUNE, 2021. WE'VE GOT A DAY FROM THE COLD SNAP FROM LATE DECEMBER, 2022. WE ARE SHOWING A LOAD TRACE IN AUGUST 2023 WHERE THE SYSTEM WAS STRESSED BY THE FIRE AT THE SKAGIT THAT SUMMER AND THEN THERE IS THE COLD SNAP THIS PAST JANUARY. WHAT WE CAN SEE IS THAT RECENT ACTUAL STRESS CONDITIONS LINE UP WELL WITH THE UPPER BOUNDS OF THE 2025 SYSTEM LOADS. IT SHOWS THAT THE NEAR FUTURE SIMULATED PEAK LOADS ARE APPROXIMATING RECENT PEAK LOADS PRETTY WELL. >> AS WE TRANSITION TO THE NEXT SLIDE I WOULD ENCOURAGE US TO WATCH THE ORANGE LINES. WE ARE USING THEM AS REFERENCES BETWEEN THESE ASKS. AS WE TRANSITION TO THE NEXT LINE THOSE ORANGE LINES WILL REMAIN ON THE NEXT GRAPHIC. >> GREAT. THIS PLOT SHOWS THE SIMULATED LOAD FOR 2035 FROM THE IRP UPDATE. FURTHER IN THE FUTURE THAN WE WERE LOOKING AT IN THE PAST SLIDE. AND THE SITUATION HAS CHANGED SIGNIFICANTLY BECAUSE FORECAST LOADS ARE INCREASING SO QUICKLY. THE SHADED ORANGE BAND IN THIS GRAPH SHOWS THE RANGE OF SIMULATED HOURLY LOAD FOR 2035 ACROSS THE HOURS OF THE DAY FOR EACH MONTH OF THE YEAR. THIS IS SIMILAR TO THE ORANGE BAND SHOWING THE RANGE OF 2025 LOADS IN THE PREVIOUS GRAPH. THIS GRAPH ADDS A BLUE BAND TO SHOW THE RANGE OF SIMULATED GENERATION FOR 2035 BASED ON THE CAPABILITY FROM RESOURCES IN THE CURRENT PORTFOLIO. WE STILL HAVE THE DARK ORANGE LINES SHOWING THE ACTUAL SYSTEM LOAD FROM THE MOST STRESSED DAYS FROM THE PAST FEW YEARS AND WE ADDED THE ACTUAL GENERATION FROM THOSE SAME DAYS AS THE DARK BLUE LINES. THE STRESS EVENTS AROUND THE LAST FEW YEARS LAND IN THE MIDDLE OF THE ORANGE BANDS, REPRESENTING THE RANGE OF LOWS IN 2035, SO OUR CURRENT MOST STRESSED CONDITIONS ARE GOING TO BE WHAT WE EXPECT FOR NORMAL DAYS IN 2035. IF WE WANT TO SERVE LOADS WITH OUR OWN RESOURCE STACK, CITY LIGHT WILL NEED TO ACQUIRE SIGNIFICANT RESOURCES IN THE NEXT 10 YEARS. >> THINK YOU AND I WILL PAUSE BEFORE WE TRANSITION TO THE NEXT SLIDE. I DO THINK THIS IS AN IMPORTANT UNDERSTANDING OF HOW OUR SYSTEM IS CHANGING AND USING THAT REFERENCE FOR EXTREME EVENTS WE RECENTLY EXPERIENCED, COMPARED TO WHAT WE CAN EXPECT IN THE STUDY PERIOD FOR 2035. IF WE HAVE EXTREME EVENTS IN 2035, WE NEED TO MAKE SURE WE ARE BUILDING A PORTFOLIO OF RESOURCES THAT CAN RESPOND TO THIS ORANGE SIMULATION BAND AND THAT IS WHAT WE ARE TRANSITIONING TO IN THE NEXT SLIDE, THE RESOURCE PLANNING PLAYBOOK THAT THIS STUDY IDENTIFIES THAT CAN HELP US MEET THE NEEDS OF THOSE STRESS CONDITIONS. EARLIER IN THE PRESENTATION WE SPOKE TO THE TABLE WHICH SHOWED OUR RESOURCE ADDITIONS OVER 10 YEARS AND THIS RESOURCE PLANNING PLAYBOOK ZOOMS IN ON THE INDIVIDUAL YEARS OF THAT STUDY PERIOD, SHOWING THAT TABLE EARLIER. THE X AXIS SHOWN ON TOP IS THE YEAR OF THE RESOURCE PLAN AND THE Y-AXIS ON THE LEFT IS THE RESOURCE COST IN DOLLARS PER MEGAWATT HOUR. WHEN WE EVALUATE RESOURCES IN THE STUDY PERIOD, ONE KEY INPUT IS THE ASSUMED PRICE. THAT PRICE IS SHOWN AS A DOT IN THE CENTER OF THE RECTANGLES. THAT.MAPS TO THE ACCESS, SO IT MEANS THE RESOURCES MORE EXPENSIVE. TO GET TO A SPECIFIC PRICE YOU JUST TAKE THAT AND WALK IT TO THE AXIS. THE NAMEPLATE OF THE RESOURCES REFLECTED IN THE HEIGHT OF THE RECTANGLE AND THE LABEL AT THE TOP OF THE RECTANGLE. THIS HEIGHT OF THE RECTANGLE PROVIDES A VISUAL REPRESENTATION OF CAPACITY. THE TYPE OF RESOURCES ARE ASSOCIATED WITH THE COLOR KEY ON THE RIGHT. A YELLOW BOX IS A SOLAR RESOURCE. THE WIDTH OF THE RECTANGLE IS THE CONTRIBUTION OF THAT RESOURCE TO US MEETING PERIODS OF SYSTEM STRESS. THAT IS TYPICALLY REFERRED TO AS RESOURCE ADEQUACY, BUT IT IS HOW EFFECTIVE THAT RESOURCE IS TO MEETING NEED. THE WIDER THE RECTANGLE, THE MORE THE RESOURCE CONTRIBUTES TO MEETING OUR CUSTOMERS DURING THOSE CONDITIONS. SO TO KIND OF SUMMARIZE THE GRAPHIC, BECAUSE THIS IS ALSO A NEW GRAPHIC THAT SHOWS UP IN OUR RESOURCE PLAN, WE THINK IT IS AN IMPORTANT WAY TO PRESENT AS WE ARE ADDING MORE RESOURCES HOW THOSE SHOW UP AND HOW THEY COMPARE. WE ARE COMMUNICATING FOR VECTORS FOR RESOURCES. THE FIRST IS COST. THE SECOND IS QUANTITY. THE THIRD IS CONTRIBUTION DURING STRESS CONDITIONS AND THE FOURTH IS THE YEAR SELECTED. THIS RESOURCE PLANNING PLAYBOOK WE THINK IS USEFUL FOR UNDERSTANDING HOW WE CAN EFFECTIVELY MEET CUSTOMER POWER NEEDS. THE KEY CONCLUSIONS OF THE REPORT AND OF THIS GRAPHIC IS IN THE NEAR-TERM NEED FOR WIND, SOLAR, AND BATTERIES WHICH IS THE YELLOW, ORANGE, AND BLUE. ANOTHER CONCLUSION IS THE SELECTION OF THE ENHANCED GEOTHERMAL RESOURCE AS A POWER SUPPLY RESOURCE IN THE STUDY. THAT IS SELECTED STARTING IN 2032. INTERESTINGLY, 2032 IS THE FIRST YEAR IN THE STUDY PERIOD THAT WE MADE ENHANCED GEOTHERMAL AVAILABLE TO OPTIMIZE RESOURCE ADDITIONS TO MEET CUSTOMER POWER NEEDS AND WE LIMITED IN THE STUDY THE AMOUNT OF ENHANCED GEOTHERMAL TO 400 MEGAWATTS, WHICH THE PLANNING TOOLS EXHAUSTED BEFORE RETURNING TO OTHER TYPES OF RESOURCES. THIS IS THE FIRST INSTANCE WHERE WE MODELED ENHANCED GEOTHERMAL IN THE RESOURCE PLAN. AND IT SELECTION EVEN AT RELATIVELY HIGHER PRICE LEADS US TO A CONCLUSION IN THE REPORT THAT WE NEED TO EVALUATE, DO ADDITIONAL EVALUATION OF CLEAN RESOURCES. FOR FUTURE STUDY PERIODS. >> TO BRING US BACK TO THE BEGINNING, THE 2024 IRP PROGRESS REPORT IS A REFRESH OF THE 2022 IRP USING THE SAME TOOLS, SAME PROCESS AND SIMILAR ASSUMPTIONS THAT RESULTED IN DRAMATICALLY DIFFERENT RESULTS DUE TO THE SIGNIFICANTLY INCREASING LOADS WE ARE SEEING. CUSTOMER ELECTRICITY NEEDS INCREASED AS THE RESULT OF THE ELECTRIFICATION OF BUILDINGS AND TRANSPORTATION. THE STUDY PROVIDES A RESOURCE PLANNING PLAYBOOK IN THE ADDITION OF WIND, SOLAR, BATTERIES AND CARBON FREE ENERGY RESOURCES TO MEET THE GROWTH NEEDS. IN THE 2024 IRP PROGRESS REPORT WE INCLUDED ENHANCED GEOTHERMAL AS A REPRESENTATIVE CARBON FREE RESOURCE. IN FUTURE STUDIES, CITY LIGHT WILL CONTINUE TO EVALUATE CARBON FREE FIRM RESOURCE OPTIONS THAT CAN RELIABLY RESPOND TO CHANGES IN DEMAND, INCLUDING ADDITIONAL HYDROPOWER, ENHANCED GEOTHERMAL, REACTORS, HYDROGEN, FUSION, AND OTHER EMERGING TECHNOLOGIES. AND FINALLY OUR REQUESTED ACTION IS TO ADOPT A RESOLUTION THAT APPROVES THE 2024 IRP PROGRESS REPORT WHICH WILL ALLOW US TO SUBMIT IT TO THE DEPARTMENT OF COMMERCE. THANK YOU. >> SO, THANK YOU FOR BEING HERE TODAY. I HAVE A LIST OF QUESTIONS ON THIS, BUT I WANT TO BE MINDFUL OF TIME SINCE WE WILL HAVE YOU BACK ON AUGUST 2. COLLEAGUES, ANY QUESTIONS OR COMMENTS? >> CHAIR, LIKE YOURSELF I HAVE A LONG LIST OF QUESTIONS. I WILL SAY I REALLY APPRECIATE THE TIME I SPENT WITH YOU EARLIER THIS WEEK. I WILL HOLD MY QUESTIONS IN THE INTEREST OF TIME. >> COUNCILMEMBER SAKA. >> I WON'T HOLD FOR THE INTEREST OF TIME. THIS IS IMPORTANT STUFF. THANK YOU, MADAM CHAIR AND THANK YOU TO THE TEAM FOR THIS WONDERFUL PRESENTATION CYCLE. EYE-OPENING PRESENTATION. KIND OF TEED UP, TEED UP AN OPPORTUNITY HERE IN TERMS OF THE DEMAND, LOAD, AND THE RESOURCES REQUIRED TO MEET THE ANTICIPATED AND WHO KNOWS, IN SOME OF THE MODELING THAT YOU MAPPED OUT IT COULD BE EVEN WORSE. SO A LOT OF OPPORTUNITY HERE. WE ARE GOING TO WANT TO CONTINUE THE CONVERSATION, BUT I WILL SAY, SO THIS, THE WHOLE PRESENTATION, YOU TEED UP THE OPPORTUNITY. I REALLY LOVE THAT, WHAT I KIND OF YOU LIKE THE PUNCHLINE SIDE, WHICH IS SLIDE 13 AND THE KEY THERE TO ADDRESS THE OPPORTUNITY. AND YOU APTLY NOTED THAT WIND AND SOLAR ARE INCREASINGLY IMPORTANT AND TALKED ABOUT THE IMPORTANCE AMONG OTHER THINGS OF CLEAN RENEWABLES, GEOTHERMAL. I WOULD JUST BE CURIOUS TO BETTER UNDERSTAND A COUPLE OF THINGS. FIRST OFF WITH RESPECT TO GEOTHERMAL ENERGY, HOW -- AS I UNDERSTAND IT THAT IS SOMEWHAT OF A NATION TO RESOURCE AND TECHNOLOGY. ARE THERE ANY OTHER UTILITIES THAT ARE CRUSHING IT IN TERMS OF THEIR USE OF GEOTHERMAL? AND WHAT BARRIERS DO WE FACE HERE FROM A CITY LIGHT PERSPECTIVE TO ADOPTING AND SCALING THAT RESOURCE LOCALLY? THAT IS QUESTION ONE. >> I WILL START WITH THAT. SO, THERE ARE UTILITIES THAT ARE CRUSHING IT IN GEOTHERMAL. >> A TECHNICAL TERM TWO BY THE WAY. >> IN HAWAII IS ONE. ICELAND DOES GOOD WORK HERE AS WELL. I HAVE GEOTHERMAL IN MY PORTFOLIO AT LIGHT AND POWER. THAT SAID, GEOTHERMAL IS IN THIS MODEL IN SLIDE 12 THAT WE PRESENTED HERE AS A PLACEHOLDER FOR CARBON FREE RENEWABLE ENERGY THAT IS FIRM. NOTABLY HE DID NOT INTRODUCE THIS INTO THE MODEL UNTIL 2032 AND IT WAS ALL USED UP AT 2039. SO THE MODEL GRAFT FIRM AHEAD OF EVERYTHING ELSE. HAD WE INTRODUCED IT EARLIER THE MODEL WOULD HAVE GRAPHED IT THEN. BECAUSE TERM ENERGY, AVAILABLE BY 24, OFFERS MUCH MORE RELIABILITY TO OUR SYSTEM AND ENSURES WE WILL BE ABLE TO SUPPLY IT WITH LESS MARKET, LESS HAVING TO GO TO THE MARKET IN THE MIDST OF THE EVENT IF WE GOT THAT AVAILABLE. SO THAT IS AN IMPORTANT THING TO NOTE. SO IT REALLY IS A PLACEHOLDER. GEOTHERMAL, IF WE ARE ABLE TO FIND IT AND WE SHOULD BE ABLE TO, THEN WE HAVE TO BUILD THE TRANSMISSION FROM WHERE WE FIND IT TO BRING IT HERE. THAT CAN BE A SOMEWHAT EXPENSIVE AND DAUNTING TASK TO DO, BUT I WILL ASK THE TEAM, OTHER THOUGHTS. >> I JUST HAD A COUPLE THINGS. THANK YOU FOR THAT. ON THE NEW TECHNOLOGY, THIS IS MODELING ENHANCED GEOTHERMAL, WHICH IS ONE OF THOSE ADDITIONAL, NEWER TECHNOLOGIES AROUND GEOTHERMAL AND PEOPLE WHO ARE KILLING IT -- RECENTLY SIGNED A POWER PURCHASE AGREEMENT AND COORDINATION WITH SOME OTHER OUTLETS FOR THIS TYPE OF TECHNOLOGY OFF OF THIS TYPE OF RESOURCE, BUT WE DO ADD IT LATER IN THE PORTFOLIO TO GIVE IT SOME TIME TO BECOME MORE COMMERCIAL. >> THANK YOU AND THAT ANSWERED ANOTHER QUESTION I HAD, LIKE GEOTHERMAL IT SOUNDS LIKE IS DEFINITELY MUCH LESS WEATHER DEPENDENT THAN WIND, FOR EXAMPLE. AND MORE CONSISTENT, RELIABLE SOURCE IF WE CAN FIND IT. AND YOU KNOW, KIND OF BEGS THE QUESTION OF WHAT HAPPENS IF WE DON'T OR ARE UNABLE TO FIND IT, SO TO SPEAK, PROCURE IT, LEVERAGE IT, HERE LOCALLY? BECAUSE MY READING OF THIS CHART IS THAT KEY ASSUMPTIONS ARE BASED ON THE FACT THAT WE ARE GOING TO FIND IT. SO IN ANY EVENT THIS IS INTERESTING STUFF. I WILL WANT TO DO A DEEPER DIVE OFF-LINE WITH YOU ALL ABOUT THESE VARIOUS RESOURCES AND I THINK WE SHOULD CONTINUE TO EXPLORE -- MADAM CHAIR AND OUR COLLEAGUES -- THE ASSUMPTIONS BAKED IN HERE AND WHAT THAT PURPORTS FROM A CITY POLICY AND PLANNING PERSPECTIVE. AND THANK YOU. I GEEK OUT ABOUT THIS STUFF. >> WHERE PLENTY OF TIME. I WANT TO ACKNOWLEDGE THAT FURTHER DISCUSSION IS NEEDED BEFORE VOTING ON THIS, SO WE WILL NOT VOTE ON IT TODAY AND WE WILL CONSIDER IT FOR THE AUGUST COMMITTEE MEETING. I, TOO, HAVE QUESTIONS AND I WILL REACH OUT TO YOU, AS WELL AS MAYBE HAVE THESE QUESTIONS ANSWERED IN THE NEXT COMMITTEE MEETING, BUT I'M HOPING TO CONNECT THE DOTS FROM THIS IRP AND HOW IT INFORMS SETTING RATES AND PLANNING FOR FUTURE NEEDS, SO I WOULD LOVE TO HAVE A DETAILED BREAKDOWN OF THE PROJECTED COST YOU PROPOSE AND HOW THEY COMPARE TO ALTERNATIVE OPTIONS. I WOULD ALSO LIKE TO NOTE THE METRICS AND BENCHMARKS USED TO MEASURE THE ASSESSMENT. SO I WILL SEND THESE OVER. THANK YOU. LET'S MOVE ON QUICKLY TO OUR NEXT ITEM. WITH THE CLERK Res 32139: An ordinance related to the City Light Department PLEASE READ ITEM FOR INTO THE RECORD. >> AGENDA ITEM FOUR, A RESOLUTION ADOPTING A 2025 TO 2000 -- 2030 UPDATE FOR THE CITY LIGHT DEPARTMENT AND ENDORSING THE ASSOCIATED SIX YEARS RATE PACK FOR DISCUSSION AND BRIEFING. >> THANK YOU, SO WE HEARD FROM CITY LIGHT ON THE PLAN UPDATE DURING SPECIAL COMMITTEE ON MONDAY. I THINK WE WERE OVERLY AMBITIOUS TODAY ON HOW MUCH WE COULD DO AND COMING ACROSS TIME. I AM SO SORRY TO HAVE TO DO THIS, BUT I WOULD LIKE TO INVITE CITY LIGHT BACK TO HAVE MORE TIME FOR DISCUSSION ON THE STRATEGIC PLAN ON AUGUST 2. BUT LOOKING AT THE TIME, I APOLOGIZE, WE ARE RUNNING OUT OF TIME AND LOOK FORWARD TO A VERY ROBUST DISCUSSION ON AUGUST 2. AS A COUNCILMEMBER WE HAVE TO CONSIDER ANY RATE INCREASES. SUCH AS THE ONE RECENTLY ANNOUNCED AS WELL AS OTHER TAX INCREASES REQUESTED BY THE CITY. SUCH AS THE RECENT TRANSPORTATION LEVY. THE 5.4 AVERAGE INCREASE LOOKS LIKE A SIX DOLLARS JUMP FOR AN AVERAGE RESIDENT, BUT IF THE RATES CONTINUE TO INCREASE 5% ANNUALLY UNTIL 2040 AS THE PLAN STATES, THEN BY 2030 -- I AM VERY CONCERNED ABOUT THE IMPACT ON RESIDENTS OF SEATTLE. SO WHILE WE HAVE A LOT OF QUESTIONS AND CONCERNS I WANT TO BE MINDFUL OF TIME TODAY, KNOWING WE HAVE MORE TIME SCHEDULED ON AUGUST 2. SO IF IT IS OKAY WE WILL SAVE OUR QUESTIONS FOR AUGUST 2 AND I RECOMMEND BRIEFINGS BETWEEN ALL OF US ON THE HEAD OF THAT DATE AND BE ABLE TO ASK THAT BY THE NEXT MEETING WE HAVE ALL THE KEY ASSUMPTIONS DRIVING INCREASED RATES. POSSIBLY BEING ABLE TO COMPARE OTHER RATES SCENARIOS MODELED AND A BREAKDOWN OF EACH CUSTOMER CATEGORY AND HOW THESE ARE MADE. IN ADDITION TO THE REQUEST FOR DETAILS FROM THE LAST IRP PRESENTATION. AGAIN, APOLOGIES. LET'S HOLD OUR QUESTIONS FOR A TRANSPARENT DISCUSSION AUGUST 2. I ALSO ENCOURAGE THE PUBLIC TO PROVIDE COMMENT OR ATTEND THE SECOND PUBLIC HEARING ON THE INTEGRATED RESOURCE PLAN. SO IF THERE ARE NO FURTHER QUESTIONS OR COMMENTS, WE HAVE REACHED THE END OF TODAY'S MEETING AGENDA. IS THERE ANY FURTHER BUSINESS TO COME BEFORE THE COMMITTEE BEFORE WE ADJOURN? HEARING NO FURTHER BUSINESS BEFORE THE COMMITTEE, WE ARE ADJOURNED. THANK YOU.