>>> GOOD MORNING. THE AUGUST 6th
2025 FINANCE, NATIVE COMMUNITIES
MEETING WILL COME TO ORDER, I'M
DAN STRAUSS, CHAIR OF THE
COMMITTEE, VICE CHAIR WERE THERE
AND COUNCIL PRESIDENT NELSON ARE
EXCUSED. WILL THE CLERK CALL THE
ROLL.
>> COUNCILMEMBER KETTLE.
>> HERE.
>> COUNCILMEMBER SAKA.
>> HERE.
>> CHAIR STRAUSS.
>> THREE PRESENT, TWO EXCUSED .
>> THANK YOU. WE DO HAVE QUORA
MANNED IT HAS BEEN RELAYED TO ME
THAT WE ARE -- LOUD AND CLEAR.
WE HAVE THREE ITEMS ON TODAY'S
AGENDA, THREE APPOINTMENTS TO
THE INDIGENOUS IT IS THROUGH
COUNCIL, AND ORDINANCE RELATED
TO OUR CONTRACT AMENDING
PROVISIONS OF THE CONTRACT AND
BOND PROCESS TO ALIGN WITH STATE
LAW AS WELL AS A BRIEFING ON THE
AUGUST 2025 ECONOMIC AND REVENUE
FORECAST. BEFORE WE BEGIN, IF
THERE IS NO OBJECTION, THE
AGENDA WILL BE ADOPTED. HEARING
NO OBJECTION, THE AGENDA IS
ADOPTED. I AM CHECKING TO SEE IF
WE HAVE ANY PUBLIC COMMENT
TODAY. I DON'T SEE ANYONE
REMOTELY PRESENT AND WE DON'T
HAVE ANYONE IN PERSON PRESENT.
ANYONE WANT TO SPEAK HERE?
I.T.S, CAN YOU CONFIRM WE HAVE
NO ONE REMOTELY PRESENT PUBLIC
COMMENT TODAY?
>> THERE ARE NO REMOTE PUBLIC
COMMENTERS.
>> THANK YOU MR. G.
>> YOU ARE WELCOME,
COUNCILMEMBER.
>> WITH THAT, WE'RE GOING TO
MOVE ON AS WE HAVE NO PUBLIC
COMMENTERS PHYSICALLY OR
REMOTELY PRESENT. WE'LL MOVE ON
TO OUR FIRST ITEM OF DISMISS,
THE FIRST OF WHICH, THE FIRST
TECHNICALLY THREE ITEMS OF
BUSINESS. CLERK, WILL YOU PLEASE
READ THE SHORT TITLE INTO THE
RECORD?
>> REAPPOINTMENT AND APPOINTMENT
OF ESTHER LUCERO, DONNIE
STEVENSON AND TIA YAZZIE AS
MEMBERS OF INDIGENOUS ADVISORY
COUNCIL FOR A TERM TO JULY 31st,
2027. THIS ITEM IS FOR
BREATHING, DISCUSSION AND
POSSIBLE. PRESENTERS INCLUDE
LYDIA FAITALIA OF THE DEPARTMENT
OF NEIGHBORHOODS.
>> WONDERFUL. WELCOME LYDIA. IF
YOU WANT TO TAKE A MOMENT TO DO
INTRODUCTIONS AND I BELIEVE YOU
HAVE A POWERPOINT, IS THAT
CORRECT? AND YOU WILL NEED TO
BRING THE MICROPHONE.
>> WE DON'T HAVE A POWERPOINT
TODAY, COUNCILMEMBER STRAUSS
WILL BE READING DIRECTLY FROM
OUR NOTES.
>> THAT'S TOTALLY FINE. OVER TO
YOU IF YOU WANT TO MAKE
INTRODUCTIONS AND TAKE IT AWAY.
>> THANK YOU. GOOD MORNING.
CHAIR STRAUSS AND ESTEEMED
COUNCILMEMBERS. MY NAME IS LYDIA
FAITALIA. I WORK FOR THE
DEPARTMENT OF NEIGHBORHOODS AS
THE CIVIC ENGAGEMENT MANAGER. I
AM PLEASED TO PRESENT THREE
APPOINTMENTS TO THE INDIGENOUS
ADVISORY COUNCIL TODAY,
INDIGENOUS ADVISORY COUNCIL WAS
ESTABLISHED IN 2021 THROUGH THE
CITY ORDINANCE 12 6512, THE
INDIGENOUS ADVISORY COUNCIL IS
COMPRISED OF NINE MEMBERS
REPRESENTING NATIVE COMMUNITIES
IN OUR REGION. I OUR MEMBERSHIP
INCLUDES YOUTH, ELDER
REPRESENTATIVE, ELECTED TRIBAL
LEADERS ENTER THE NATIVE
LEADERS. THE INDIGENOUS ADVISORY
COUNCIL ADVISES THE MAYOR , THE
CITY COUNCIL, AND CITY
DEPARTMENTS ON POLICIES,
BUDGETS, PROGRAMS, SERVICES AND
PROJECTS DIRECTLY AFFECTING
INDIGENOUS POPULATIONS INCLUDING
AMERICAN INDIAN, ALASKA NATIVES,
AND NATIVE HAWAIIAN PEOPLE. THE
INDIGENOUS ADVISORY COUNCIL
BUILDS AND STRENGTHENS
INDIGENOUS REPRESENTATION AND
INDIGENOUS KNOWLEDGE AND PUBLIC
POLICY PROCESS BY PROMOTING AND
ADVANCING PRIORITIES AND
SOLUTIONS IDENTIFIED BY AND FOR
INDIGENOUS COMMUNITIES. THE CITY
OF SEATTLE'S GOVERNMENT AND
GOVERNMENT RELATIONSHIP WITH
TRIBAL NATIONS CONTINUES TO BE
FULFILLED BY THE OFFICE OF
INTERGOVERNMENTAL RELATIONS. WE
ARE GRATEFUL TO THESE THREE
MEMBERS FOR THEIR WILLINGNESS TO
SERVE ON THE INDIGENOUS ADVISORY
COUNCIL AS WE FURTHER DEFINE AND
SHAPE OUR ROLE IN SUB HOARDING
NATIVE COMMUNITIES THROUGH LOCAL
GOVERNMENT. THANK YOU FOR THE
OPPORTUNITY TO BE HERE TODAY. IN
POSITION ONE, WE ARE PLEASED TO
PRESENT THE RECOMMENDED
REAPPOINTMENT OF DONNY STEVENSON
. POSITION ONE OF TWO POSITIONS
ON THE ADVISORY INDIGENOUS
ADVISORY COUNCIL HELD BY MEMBERS
OF INDIGENOUS TRIBES LOCATED IN
WASHINGTON STATE WHO ARE
NOMINATED BY THEIR RESPECTIVE
TRIBAL COUNCIL AS THEIR OFFICIAL
DELEGATE. COUNCILMEMBER
STEVENSON IS AN ELECTED MEMBER
OF THE MUCKLESHOOT TRIBE AND
BRINGS 25 YEARS OF EXPERIENCE AS
AN EXECUTIVE LEADER IN INDIAN
COUNTRY, SERVING HIS TRIBE AND
NATIVE PEOPLE. DONNY IS
PASSIONATE ABOUT ACCESSING THE
TRADITIONAL TEACHINGS AND
WISDOM'S OF THE ANCESTORS AND
ELDERS TO BUILD A SUSTAINABLE
AND SUCCESSFUL FUTURE FOR ALL
BUT PARTICULARLY FOR HIS TRIBE ,
HIS TRIBAL PEOPLE AND COMMUNITY.
HE BELIEVES THIS IS ACCOMPLISHED
THROUGH A LENS OF COLLABORATIVE
SPIRIT TOWARDS UNITY WHILE
ASSERTING TRIBAL SOVEREIGNTY,
SELF-GOVERNANCE, AND
SOVEREIGNTY. THIS APPROACH
ULTIMATELY BUILDS PATHWAYS OF
CREATIVITY, HEALING, PERSISTENCE
AND OPPORTUNITY THROUGH STRENGTH
AND LEGACY PROVIDED BY TRIBAL
CULTURE AND TRADITION.
COUNCILMEMBER STEVENSON ATTENDED
EVER REINSTATE COLLEGE, WHERE HE
EARNED HIS FORMAL EDUCATION
THROUGH A BACHELORS TO LIBERAL
ARTS, FOCUS ON NATIVE AMERICAN
STUDIES. DONNY AND HIS WIFE,
TINA, RAISED THEIR FOUR CHILDREN
WITH MUCKLESHOOT TRIBAL
COMMUNITY, WITH INDIGENOUS
PRINCIPLES AND VALUES HAVE
SHAPED THEIR LIVES TOGETHER AND
ALL HAVE TAKEN ON VERY PERSONAL
APPLICATION OF THOSE FAMILY
VALUES, AND A RESPONSIBILITY TO
THE NEXT GENERATION, AND ALL
THOSE THAT FOLLOW. COUNCILMEMBER
STEVENSON HAS PREVIOUSLY SERVED
TWO TERMS ON THE INDIGENOUS
ADVISORY COUNCIL. I'M GOING TO
TAKE A PAUSE TO HAVE ANY
QUESTIONS, COUNCILMEMBER
STRAUSS.
>> NOT AT THIS TIME. WE'LL SEE
COLLEAGUES. ANY QUESTIONS ABOUT
DONNY STEVENSON'S APPOINTMENT?
AND I ALWAYS GET -- IS HE STILL
THE VICE CHAIR OR JUST
COUNCILMEMBER? DONNY? HE'S
DONNY -- WHAT IS DONNY'S
POSITION AT MUCKLESHOOT ?
>> POSITION ONE POINT
>> I'M SORRY.
>> I'M SORRY, I CAN'T HEAR YOU
COUNCILMEMBER STRAUSS. I NEED
YOU TO SPEAK INTO THE MIC A
LITTLE BIT.
>> THE POSITION THAT
COUNCILMEMBER OR VICE CHAIR
STEVENSON HOLDS WITH THE
MUCKLESHOOT TRIBAL COUNCIL.
>> IS AN ELECTED TRIBAL MEMBER
COUNCILMEMBER.
>> FORMER VICE CHAIR, IS THAT
CORRECT? I CAN NEVER TAKEN OUT
OF THAT POSITION IN MY OWN MIND.
I SEE COUNCILMEMBER KETTLE HAS
HIS HAND RAISED
>> YES, THANK YOU'S CHAIR
STRAUSS. I JUST WANTED TO SAY I
REALLY APPRECIATE AND THANK MR.
STEVENSON FOR LOOKING TO
CONTINUE HIS SERVICE. I'VE HAD
THE FORTUNATE EXPERIENCE OF
MEETING HIM AT MANY TIMES,
DIFFERENT EVENTS. THE LAST
REGARDING BALING NEAR THE FERRY
TERMINAL AND I WANTED TO THANK
HIM THUS FAR FOR HIS SERVICE HIM
AND HIS SERVICE MOVING FORWARD,
AND MORE BROADLY TO SAY IT'S
IMPORTANT TO BRING IN THE NATIVE
COMMUNITY, TRIBAL GOVERNANCE
INTO WHAT WE ARE DOING, BECAUSE
AS I'VE OFTEN SAID, THIS IS ONE
OF THE THINGS THAT MAKES US
UNIQUE AS A CITY, COMPARED TO
OTHER CITIES ACROSS THE COUNTRY.
AND SOMETHING THAT SHOULD BE
EMBRACED. AND SO HIS SERVICE,
THE COUNCIL AND HIS SERVICE ON
THAT GOES TO THAT AND TO BE
FRANK, ALSO GOES TO THE REASON
WHY WE NOW HAVE SOMEBODY FROM
THE NATIVE COMMUNITY SERVING
BACK ON SEATTLE CITY COUNCIL.
THANK YOU.
>> THANK YOU COUNCILMEMBER
KETTLE, AND I CAN SAY I'M
LOOKING FORWARD TO SEEING
COUNCILMEMBER STEVENSON NEXT
WEEK WHEN I MEET WITH THE
MUCKLESHOOT TRIBAL COUNCIL. ANY
OTHER QUESTIONS ABOUT DONNY AT
THIS TIME? IF NOT , IF YOU WANT
TO BRIEF THE NEXT TWO
APPOINTMENTS, AS WELL.
>> ABSOLUTELY, THANK YOU
COUNCILMEMBER. IN POSITION 4 WE
ARE PLEASED TO PRESENT THE
RECOMMENDED APPOINTMENT OF TIA
YAZZIE. TIA IS HERE SO I WILL GO
AHEAD AND LET HER INTRODUCE
HERSELF. THANK.
>> THANK YOU. [ SPEAKING
NON-ENGLISH ]
>> SO GOOD MORNING, I'M TIA
YAZZIE. I AM FROM THE NAVAJO
RESERVATION IN ARIZONA BUT
CURRENTLY LIVE HERE IN SEATTLE,
WASHINGTON. I WORK CURRENTLY FOR
HUMMINGBIRD INDIGENOUS FAMILY
SERVICES, WHICH IS A MATERNAL
AND INFANT HEALTH ORGANIZATION
AND NONPROFIT, WHERE I HELP
CO-RUN AND I AM THE CASE MANAGER
OF THE GUARANTEED INCOME
HIGHLIGHT PRODUCT CALLED THE
NEST PROGRAM . YEAH, SO THANK
YOU FOR HAVING ME. I'M SO
EXCITED TO BE HERE AND HONORED
TO BE A PART OF THIS ADVISORY
COUNCIL. AND SUPER GLAD TO MEET
EVERYBODY HERE TODAY.
>> THANK YOU. LYDIA, COULD YOU
PROVIDE A LITTLE BIT MORE
CONTEXT AS TO -- I BELIEVE THIS
IS THE -- CAN YOU REMIND ME
ABOUT THE SPECIFICS OF THIS
POSITION AND WHY THERE IS
REGULAR TURNOVER?
>> ABSOLUTE. TIA YAZZIE, SO WE
HAD MEGAN IN THE YOUTH POSITION,
SO TIA YAZZIE IS FILLING IN FOR
POSITION 4 PURPOSE OF THIS
POSITION IS FOR YOUTH, SO TIA
YAZZIE IS OUR NEW YOUTH
REPRESENTATIVE ON THE INDIGENOUS
ADVISORY COUNCIL.
>> CAN YOU REMIND ME WHAT THE
AGE BRACKET IS? BECAUSE YOU HE
SOUNDS LIKE A MUCH YOUNGER
PERSON. AND I JUST SAY THAT
BECAUSE I WAS A LITTLE -- YOU
SAW ME GET CAUGHT OFFGUARD. I
HAD TO USE THE MICROPHONE IN A
MORE APPROPRIATE QUESTION A
MOMENT AGO, AND IT'S BECAUSE I
WAS TRYING TO READ YOUR ENTIRE
RESUME, WHICH I DON'T KNOW HOW
YOU GOT SO MANY WORDS ONTO ONE
PAGE. I MEAN YOUR RESUME IS MORE
PACKED THAN MINE AND SO TO HAVE
SOMEBODY WITH SUCH BREADTH AND
EXPERIENCE FOR THE YOUTH
POSITION, I WAS A LITTLE BIT
CAUGHT OFFGUARD. SO WE'RE
REALLY EXCITED TO HAVE YOU HERE
. I CAN SEE YOU HAVE YOUR
MASTERS OF SOCIAL WORK. YOU'RE
WORKING FOR HUMMINGBIRD. YOU
HAVE, AND I'M SEEING NOW
TECHNICAL YOUTH IS 18 TO 24.
THAT'S I THINK YOUNG ADULT IS
MAYBE A BETTER WAY OF SAYING
THAT IS CLEARLY THE EXPERTISE
AND EXPERIENCE THAT YOU RING
FROM DARTMOUTH, FROM THE UW, ALL
THE WAY BACK HERE, WHAT EXCITES
YOU ABOUT THIS POSITION? WHAT DO
YOU THINK THAT WE NEED TO KNOW
ABOUT WHAT'S GOING ON WITH
MATERNAL HEALTH OR THE
INDIGENOUS COMMUNITY HERE?
>> YEAH, GREAT QUESTION. JUST
FOR CONTEXT, I'M NOT A PERSON
FROM THIS AREA OR FROM THESE
WATERS, SO WHEN I FIRST CAME TO
SEATTLE OR DUWAMISH TERRITORY,
IT WAS A UNIQUE EXPERIENCE TO
LEARN MORE ABOUT THE COAST
SALISH PEOPLES HERE IN THE FIRST
PEOPLES HERE, AND HOW THEY BLEND
THEIR OWN TRADITIONAL PRACTICES
WITH MODERN TECHNOLOGY OR
WESTERN METHODOLOGIES . BUT IN
TERMS OF YOUR QUESTION AND WHAT
MEDIUM HE NEEDED TO KNOW ABOUT
MATERNAL HEALTH AND SPECIFICALLY
WORKING WITH INDIGENOUS
POPULATIONS, ONE THING THAT WE
AT HUMMINGBIRD TRY TO STRESS IS
THAT EVERY INDIGENOUS PARENT IS
A PERFECT PARENT FOR THEIR
BABIES AND FOR THEIR FAMILIES,
AND THE WAY WE EMPHASIZE THAT
AND PRACTICE THAT IN OUR DAILY
LIVES IS JUST TO BRING BACK THE
CULTURE AND RECLAIM THAT CULTURE
FOR OURSELVES AND FOR OUR
FAMILIES, WHETHER THEY'RE FROM
THIS AREA ARE NOT. AND WE REALLY
TRY TO EMPHASIZE THAT OUR
CULTURE IS AT THE FOUNDATION OF
EVERYBODY'S FAMILY AND THE
PILLAR OF OUR LIVES, AND THAT'S
HOW WE KEEP OUR GENERATIONS
MOVING. AND SO, BEING A PART OF
THIS COUNCIL, I THINK IT'S
REALLY UNIQUE BECAUSE I'M ABLE
TO SEE THE GOVERNMENT SIDE OF
THINGS, WHICH I DEFINITELY WOULD
LOVE TO LEARN MORE ABOUT, AND
HOW POLICY AND LEGISLATION
BLENDS INTO THE MATERNAL HEALTH
FIELD, AND HOW WE CAN PUSH
FURTHER AGENDA FOR OUR AREA OF
EXPERTISE.
>> WONDERFUL. AND YOU HAD THE
OPPORTUNITY TO LIVE, AND I'M
GOING TO MAKE SURE I GET THIS
RIGHT, IN NEW HAMPSHIRE, IN
ARIZONA AND WASHINGTON. I FEEL
-- I FEAR THAT I MIGHT BE
MISSING A FEW CITIES HERE
BECAUSE YOUR RESUME IS SO
PACKED. BUT WHAT HAS BEEN YOUR
EXPERIENCE NATIONWIDE IN
DIFFERENT PARTS OF THE COUNTRY
WITH, YOU KNOW, WHETHER IT'S
THE GOVERNMENT OR GOVERNMENT
PROGRAMS WORKING WITH INDIGENOUS
COMMUNITIES? WHAT'S GOING WELL
NATIONWIDE? WHAT NEEDS TO BE
IMPROVED? AND THEN SAME SET OF
QUESTIONS FOR SEATTLE. WHAT'S
GOING WELL? WHAT NEEDS TO BE
IMPROVED?
>> GOOD QUESTION. I THINK FOR
EVERY TRIBE AND EVERY LOCATION
IS SUPER DIFFERENT IN TERMS OF
THEIR OWN CULTURE, LANGUAGE, AND
LAND BASE, AND THAT IS UNIQUE.
AND I THINK EACH TRIBE AND
INDIGENOUS POPULATION IS
LEARNING A LOT WITH WHAT WE CAN
WORK WITH IN THIS MODERN WORLD,
IN TERMS OF LIKE CAPITALISM AND
COLONIZATION, AND ALL OF THE
OTHER YEAH SOME S THAT ARE OUT
THERE. I THINK OUR RESILIENCY IS
REALLY SHINING THROUGH,
ESPECIALLY DURING THIS TIME, AND
IT'S NOT THE FIRST TIME THAT
YOU'VE COME ACROSS TRAUMATIC
THINGS OR EXPERIENCED -- WHAT'S
A GOOD WORD FOR -- TRAUMATIC
THINGS IN OUR LIVES. SO I THINK
REALLY IT'S JUST INSPIRING TO
SEE ACROSS THE NATION HOW
RESILIENT AND HOW AMAZING EACH
OF OUR TRIBAL NATIONS ARE DOING.
AND OBVIOUSLY THERE ARE LOTS OF
BARRIERS AND THINGS THAT ARE
HAPPENING IN OUR COMMUNITIES,
BUT JUST TO SEE HOW MUCH GROWTH
THERE ARE IN OUR TRIBES, AND HOW
MUCH WE ARE SMILING AND LAUGHING
EACH DAY, THAT MEANS A LOT OF
JOY AND HOPE INTO MY LIFE, WHICH
IS WHY I LOVE WORKING HERE AT
HUMMINGBIRD, BECAUSE I'M
LITERALLY LAUGHING EVERY DAY AND
JUST HAVING FUN WITH MY
FAMILIES. AND SO I THINK THAT'S
A THING THAT I SEE ACROSS ALL OF
THE -- ACROSS THE NATION, IN
WHATEVER COMMUNITY I'M WORKING
WITH, OR THAT I'M IN. IN TERMS
OF HERE IN SEATTLE, I THINK
IT'S VERY UNIQUE . I'VE LIVED
IN THE SOUTHWEST. I'M FROM THE
SOUTHWEST AND BOTH OF OUR AREAS
ARE VERY DIFFERENT IN TERMS OF
HOW WE ENGAGE WITH TRIBAL
GOVERNMENTS. AND SO THE NAVAJO
NATION WHERE I'M FROM IS ONE OF
THE BIGGEST TRIBES IN ARIZONA,
AND WE HAVE A HUGE CONVERSATION
WITH OUR FEDERAL GOVERNMENT AND
STATE GOVERNMENT BUT WITH THE
SMALLER TRIBES IT'S HARDER,
JUST BECAUSE OF THE POPULATION
SIZE. AND SO I KIND OF SEE SOME
RESEMBLANCE OF THAT HEARING
WASHINGTON. BUT I THINK ACROSS
THE BOARD , THE TRIBAL NATIONS
HAVE A STRONG VOICE HERE IN
WASHINGTON ALONG WITH THE OTHER
INDIGENOUS POPULATIONS.
>> ANYTHING THAT TO ADOPT HERE
IN SEATTLE THAT THEY'RE DOING
ELSEWHERE IN THE COUNTRY, OR
ANYTHING THAT WE ARE DOING MAYBE
OTHERS SHOULD BE LOOKING
TOWARDS?
>> I THINK MAYBE IN ANOTHER
YEAR, IF YOU ASK ME, I'LL HAVE
A BETTER ANSWER.
>> THAT'S FAIR, THAT'S FAIR,
YET.
>> THAT'S A GREAT QUESTION. I
THINK IT IS IMPORTANT TO ASK
THAT AND I THINK SOMEBODY IN A
YOUTH POSITION, COMING WITH A
UNIQUE PERSPECTIVE OF A YOUNG
ADULT POPULATION, THERE'S SO
MUCH THAT THAT QUESTION CAN BE
ANSWERED, LIKE WITH, LIKE IN --
I THINK TO PROVIDE A MORE
CONCISE ANSWER, I WOULD
DEFINITELY NEED MORE TIME.
>> THAT IS MORE THAN FAIR AND
I'M GOING TO JUST START CALLING
IT THE YOUNG ADULT POSITION. THE
AMERICORPS PROGRAM I DID WAS
ALSO FOR 18 TO 24-YEAR-OLDS AND
THEY ALSO REFERRED TO US AS
YOUNG ADULTS, SO I'M GIVING YOU
DEBIT@TAKING THAT TITLE CHANGED
TO THAT. LAST QUESTION HERE,
HAVE YOU MET -- YOU SAID
SOMETHING ABOUT SMILING. CAN YOU
REMIND ME WHAT YOU WERE SAYING
RIGHT THERE, JUST THE JOY OR THE
HOPE THAT IT?
>> THE JOY AND HOPE AND THE
SMILING AND LAUGHTER OF OUR
FAMILIES, AND OF A BABY THAT
COMES INTO THIS LIFE, I THINK
THAT REALLY BRINGS ME THE JOY IN
MY LIFE AND WE REALLY TRY TO
EMBRACE THE ABUNDANCE MINDSET.
SO I TRY TO LIVE BY THAT JUST
BECAUSE I WANT MY FUTURE FAMILY
AND MY FAMILY THAT I HAVE RIGHT
NOW TO HAVE A LOT OF LOVE AND
JOY IN THEIR LIFE, AND THEY DO.
AND SO I'M REALLY HAPPY TO BE A
PART OF HUMMINGBIRD AND THIS
ADVISORY COUNCIL, AND TO BRING
THAT HERE.
>> THE WORK THAT YOU ARE DOING
IS SO INCREDIBLY IMPORTANT
BECAUSE SO MANY IMPRESSIONS ARE
MADE IN THOSE FIRST THREE YEARS,
GROWING SO MUCH AND THE ENTIRE
LIFE CAN BE ALTERED BY THE
MEDICINE AND HEALING THAT CAN
HAPPEN IN THOSE FIRST THREE
YEARS. SO REALLY I APPRECIATE
THE WORK THAT YOU'RE DOING SO
MUCH. HAVE YOU MET JEREMY TO
CALL A FROM YAKIMA YET?
>> I DON'T BELIEVE SO, SO WE'LL
HAVE TO MAKE THAT CONNECTION.
>> WHEN YOU MEET HIM, HIS SMILE,
I CAN SEE HIS SMILE FROM HERE,
IT'S SO BIG. HE JUST BRINGS
THAT WARMTH AND LOVE THAT YOU
ARE DISCUSSING RIGHT NOW.
COLLEAGUES, I WENT A LITTLE OFF
TRACK. ANY OTHER QUESTIONS FOR
TIA? I SEE COUNCILMEMBER KETTLE.
>> YES, THANK YOU CHAIR STRAUSS.
GOOD MORNING MS. YAZZIE. FIRST
LIKE WITH MR. STEPHENSON, THANK
YOU FOR YOUR SERVICE AND THANK
YOU FOR LOOKING TO STEP UP INTO
THIS ROLE, THIS YOUNG ADULT
ROLE, AS CHAIR STRAUSS JUST
SAID. BUT LOOKING AT YOUR
RESUME, TOO, IT IS QUITE
ACCOMPLISHED, AS CHAIR STRAUSS
SAID SO I ECHO THAT POINT THAT
HE MADE. MY QUESTION IS SOMEWHAT
CURIOSITY AND KIND OF DIFFERENT
PERSPECTIVE BUT IT TIES TO THE
INDIGENOUS COMMUNITY, THE NATIVE
COMMUNITY, IS A LOT OF THINGS
ARE HAPPENING ON A FEDERAL LEVEL
RIGHT NOW AND RESPECTED SERVICE
PROVIDERS AND THE LIKE, CASE
MANAGEMENT IS GOING TO BECOME A
MASSIVELY IMPORTANT ROLE IN
TERMS OF DOCUMENTING LIKE
ELIGIBILITY FOR HEALTHCARE AND
PIECES AND THE LIKE, AND I WAS
JUST WONDERING, IS THERE ANY
GENERAL LESSONS OR -- THAT
YOU'VE LEARNED DOING CASE
MANAGEMENT IN GENERAL, AND/OR
SPECIFIC THE NATIVE COMMUNITY?
>> YEAH . GOOD QUESTION. SO I
THINK SOMETHING THAT'S UNIQUE
ABOUT HUMMINGBIRD IS THAT WE TRY
TO MAKE THE CASE MANAGEMENT
PROCESS AS SIMPLE AS WE CAN,
JUST BECAUSE WE UNDERSTAND THAT
FAMILIES ARE ALREADY GOING
THROUGH STRESSFUL TIMES IN THEIR
LIVES, WHETHER IT IS BEING
ALREADY PREGNANT OR STARTING A
FAMILY, OR ANYTHING THAT IS
INVOLVED IN THEIR LIVES. AND SO
ONE THING THAT WE TRIED TO DO IS
JUST GET AS SIMPLE AS POSSIBLE
AND NOT CREATE ANY FURTHER
BARRIERS FOR THEM, WHICH A LOT
OF OTHER FEDERAL PROGRAMS DO.
AND SO WE TRY TO JUST TAKE
SIMPLE INFORMATION, NAMES,
TRIBAL AFFILIATION, THINGS LIKE
THAT, BUT IT'S ALL SELF
IDENTIFICATION, SO WE DON'T ASK
THEM TO TURN IN CIVS OR TRIBAL
CARDS. THEY CAN IF THEY WANT TO
BUT IT'S ALL UP TO THEM. AND
THEN IN TERMS OF OTHER THINGS
THAT WE DO, TOO, IS THAT WE GO
TO THE PEOPLE, SO WE DON'T ASK
THEM TO COME TO MEET US. WE TRY
TO MEET THEM WHERE THEY'RE AT
AND THAT HAS BEEN ACHING SUCCESS
FOR OUR ORGANIZATION, I BELIEVE,
JUST BECAUSE WE ARE ABLE TO MEET
THEM WHERE THEY'RE COMFORTABLE
OR ALSO PROVIDE THEIR BASIC
NEEDS, WHETHER IT BE DIAPERS OR
A MEAL, OR A COFFEE. AND SO,
JUST THOSE SIMPLE ACTS WITHIN
THE CASE MANAGEMENT PROCESS HAS
ALLOWED US TO BUILD A LOT MORE
RAPPORT AND BUILD SUPPORT FOR
OUR FAMILIES. AND I THINK
THAT'S WHAT'S MISSING IN SOME
FORMS OF CASE MANAGEMENT, AND
ESPECIALLY WORKING WITH
INDIGENOUS POPULATIONS, BECAUSE
WE ARE ALREADY, IN TERMS OF LIKE
THE LONG LEGACY OF COLONIZATION
AND CAPITALISM, WE ARE STILL
TRYING TO CATCH UP IN SOME WAYS.
SO TO MEET OUR FAMILIES WHERE
THEY'RE AT, WE ARE EMPOWERING
THEM AND NOT FORCING THEM TO
COME TO US AND TO MAKE THEM
BREAK THEIR BACKS,
QUOTE/UNQUOTE, TO MEET US AND
GET THE SERVICES THAT THEY NEED.
>> THANK YOU. AND YOU KNOW, TO
THE POINT OF THAT WAS SPOKEN
THERE AND ALSO IN YOUR EXCHANGE
WITH CHAIR STRAUSS, IT'S FUNNY.
I CAME INTO THIS JOB FROM BEING
A STAY-AT-HOME DAD AND THAT GAVE
ME, AS MY COLLEAGUE CHAIR SECOND
NOSE, TOO, LIKE RIGHT NOW
THERE'S SOME CHALLENGES BUT THE
INSIGHT AND THE PUBLISHED POINTS
ABOUT THE EARLY CHILDHOOD
EXPERIENCE AND THOSE PIECES, THE
INVESTMENT AT THAT AGE MAKES
SUCH A GREAT RETURN AND
LONG-TERM IN TERMS OF SETTING
PEOPLE ON A YOUNG CHILDREN ON A
BETTER COURSE, AND SO I JUST
WANTED TO ECHO THAT POINT, TOO
AND THINK YOU AGAIN FOR YOUR
WORK, AS WORKING IN THIS AREA,
YOU KNOW THE EFFECTS RIPPLE OUT
INTO THE FUTURE. SO THANK YOU
VERY MUCH.
>> THINK YOU.
>> THANK YOU COUNCILMEMBER
KETTLE. COUNCILMEMBER SAKA, ANY
QUESTIONS AT THIS TIME? IT'S
TOTALLY OKAY IF NOT.
>> I HAVE SOME COMMENTS, MORE
BROADLY, FOR ALL THE PROPOSED
SLATE WITH WHEN, IF NOW IS
APPROPRIATE.
>> LET'S HEAR ABOUT ESTHER AND
THEN -- LET'S HEAR ABOUT
ESTHER. TIA, THANK YOU SO MUCH
FOR WHAT YOU DO PROFESSIONALLY
FOR OUR CITY AND HEALING OUR
CITY. THANK YOU FOR YOUR
VOLUNTEER SERVICE HERE FOR THE
CITY OF SEATTLE'S INDIGENOUS
ADVISORY COUNCIL. LYDIA, IF
YOU'D LIKE TO TALK ABOUT
ESTHER, WE ALL KNOW HER VERY
WELL BUT LET'S HEAR MORE.
>> NOT A PROBLEM. THANK YOU,
CHAIR STRAUSS. IN POSITION 6 ARE
PLEASED TO PRESENT THE
RECOMMENDED REAPPOINTMENT OF
ESTHER LUCERO. POSITION 6 IS ONE
OF THREE SEATS ON THE IAC HELD
BY REPRESENTATIVES FROM AN URBAN
INDIAN ORGANIZATION AND
NOMINATED BY THE BOARD OF
DIRECTORS OF THEIR RESPECTIVE
URBAN INDIAN ORGANIZATION.
ESTHER LUCERO IS TNA AND LATINA
AND HIS THIRD GENERATION URBAN
INDIAN FROM COLORADO SPRINGS,
COLORADO. ESTHER RECEIVED A
MASTERS OF PUBLIC POLICY AND A
BACHELORS OF ARTS AND NATIVE
AMERICAN STUDIES FROM MILLS
COLLEGE. ESTHER IS THE PRESIDENT
AND CEO OF SEATTLE IN THE AND
HOW. SINCE JOINING THE HEALTH
BOARD IN 2015, ESTHER HAS
AMPLIFIED THE ORGANIZATION'S
LONG-STANDING DEDICATION TO THE
URBAN INDIAN COMMUNITY AND THE
HEALTH AND HUMAN SERVICE
WORKFORCE DEVELOPMENT, PUBLIC,
AND RESEARCH. DURING HER TENURE
SHE HAS INCREASED OPERATING
BUDGETS OF $50 MILLION, BUILT A
TEAM BASED ENVIRONMENT,
ESTABLISHED AN EXECUTIVE TEAM,
LED TO IMPLEMENTATION OF THE
FIRST OF ITS KIND INDIGENOUS
KNOWLEDGE AND FORMED INFORMED
SYSTEMS OF CARE MODEL AND
STEWARDS THE EXPANSION OF THREE
ADDITIONAL CLINIC SITES. ESTHER
CURRENTLY SERVES ON THE
SUBSTANCE ABUSE AND MEDICAL
HEALTH SERVICES IT LUSTRATION
ADVISORY COMMITTEE FOR WOMEN'S
SERVICES AND REGION TASK FORCE.
IN WASHINGTON STATE SHE SERVES
ON THE GOVERNOR'S BEHAVIORAL
HEALTH TASK FORCE, IS A DELEGATE
TO THE AMERICAN INDIAN HEALTH
COMMISSION, AND A DELEGATE TO
THE GOVERNORS INDIAN HEALTH
ADVISORY COUNCIL. LOCALLY SHE
SERVES AS THE COCHAIR FOR THE
KING COUNTY ACCOUNTABLE
COMMUNITY OF HEALTH, HEALTHIER
PEERS GOVERNING BOARD AND SERVES
ON THE NATIVE COMMUNITIES
COMMITTEE. ESTHER HAS PREVIOUSLY
SERVED TWO TERMS ON THE
INDIGENOUS ADVISORY COUNCIL. ARE
THERE ANY QUESTIONS, CHAIR
STRAUSS?
>> I DON'T HAVE ANY QUESTIONS,
AND ANYTHING THAT I WOULD SAY
ABOUT ESTHER WOULD PALE IN
COMPARISON COMPARED TO THE WORDS
THAT YOU JUST PROVIDED. JUST TO
SAY THAT, REALLY LOVE ALL OF HER
WORK AND WHAT YOU SAID IN
BRINGING HER ORGANIZATION UP TO
$50 MILLION IS QUITE AN
ACCOMPLISHMENT. SO I DON'T HAVE
ANY -- I DON'T WANT TO TAKE ANY
WORDS THAT YOU ALREADY SAID AS
YOU'VE ALREADY DONE A VERY GOOD
JOB. JUST EXCITED TO HAVE ESTHER
BACK. COUNCILMEMBER KETTLE, ANY
QUESTIONS HERE, OR COUNCILMEMBER
SAKA?
>> I WAS JUST NOTING, LOOKING AT
THE PACKAGES, AND I FIND IT
INTERESTING, AND IT COULD BE A
GENERAL QUESTION, IS LIKE WITH
MS. YAZZIE, THE NAVAJO, AND THE
EXPERIENCE IN CALIFORNIA FOR MS.
LOU CERRO, JUST WHAT DOES THAT
BRING, THE EXPERIENCE OF
COMPANY, THE EXPERIENCE OF
ARIZONA AND HOW DOES THAT PLAY
IN TERMS OF WHAT WE'RE TRYING
TO DO HERE IN WASHINGTON STATE
AND THE CITY OF SEATTLE?
>> IF YOU WANT TO ANSWER ANY OF
THAT, YOU'RE WELCOME TO, EVEN
THOUGH WE ARE TALKING ABOUT
ESTHER. YOU'RE THERE IS A LOT
TO LEARN FROM EACH OTHER, AND I
THINK TRADITIONALLY TRIBES HAVE
BEEN VERY GOOD AT EXCHANGING
KNOWLEDGE AND INFORMATION WITH
EACH OTHER, WHETHER IT BE IN THE
PAST AND PRESENT, AND SO
WHENEVER I GO HOME, A LOT OF MY
ELDERS AND PEOPLE I WORK WITH
BACK AT HOME OFTEN WANT ME TO
SHARE STORIES OF WHAT'S GOING
WELL HERE, TOO IN SEATTLE AND
WHAT TRIBES ARE UP TO HEAR. AND
SO THE EXCHANGE OF KNOWLEDGE IS
A REALLY CORE FOUNDATION FOR A
LOT OF INDIGENOUS COMMUNITIES
AND WE HAVE A LOT TO LEARN FROM
EACH OTHER. LIKE I SAID EARLIER,
EACH TRIBE IS VERY DIFFERENT IN
TERMS OF WHAT WE'RE DOING THERE
IS A LOT OF SIMILARITIES, AS
WELL, AND WE ARE FACING SAME
STRUGGLES IN TERMS OF LIKE WITH
THE FEDERAL GOVERNMENT AND STATE
GOVERNMENTS. AND SO WHATEVER
HAPPENS HERE DOES AFFECT ACROSS
THE NATION AND FOR TRIBAL
NATIONS, AND SO WE CAN JUST
LEARN A LOT FROM EACH OTHER,
WHETHER IT BE STATE TO STATE OR
ACROSS WATERS. AND SO I REALLY
TRY TO EMPHASIZE THE RECIPROCAL
RELATIONSHIPS THAT OUR TRIBAL
NATIONS ARE BASED ON OR AROUND,
SO I HOPE THAT ANSWERS YOUR
QUESTION A LITTLE BIT.
>> YES IT DOES AND THANK YOU.
THAT WAS JUST NOTING FROM THE
RESUMES, LIKE WITH MS. LUCERO'S
RESUME, THE CALIFORNIA-BASED
EXPERIENCE AND I WAS JUST
CURIOUS FROM THAT PERSPECTIVE
AND HOLDING ON WHAT YOU WERE
SAYING FROM THE NAVAJO NATION
AND ARIZONA. AND WAS JUST --
IT'S ALWAYS ONE OF THESE
OPPORTUNITIES WHERE WE SHOULD BE
DOING THIS ACROSS THE BOARD IN
ALL FORMS OF GOVERNMENT, LOOKING
TO LEARN FROM EACH OTHER AND
SOMETIMES WE DO THAT WELL.
SOMETIMES WE DON'T DO THAT WELL
SO THAT IS WHAT WE WERE ASKING,
SO THANK YOU.
>> THANK YOU COUNCILMEMBER
KETTLE. COUNCILMEMBER SAKA, NOW
WOULD BE A GOOD TIME TO TALK TO
ALL CANDIDATES.
>> THANK YOU CHAIR. I JUST WANT
TO THANK EACH AND EVERYONE OF
YOU, I GUESS STARTING WITH YOU,
THAT I COULDN'T BE MORE
INSPIRED AND IMPRESSED, AND
HONORED TO BE ABLE TO SUPPORT
YOUR NOMINATIONS TODAY. ALL OF
YOU, ALL THREE OF THE NOMINEES
REPRESENT THE BEST OF OUR
COMMUNITY BROADLY AND
INCLUSIVELY DEFINED, AND I WANT
TO THANK YOU FOR STEPPING UP TO
SERVE OUR COMMUNITY AND OUR CITY
IN SUCH A WAY. AGAIN, I THINK
THIS IS AN EXCEPTIONALLY
WELL-QUALIFIED AND ESTABLISHED
SLATE AND REALLY, REALLY HONORED
THAT YOU'RE WILLING TO SERVE IN
SUCH A WAY AND DEVOTE YOUR TIME
AND TALENTS TO HELP US ALL, SO A
FEW OTHER MORE POINTED COMMENTS
ABOUT EACH OF YOU, I GUESS
STARTING WITH YOU, MS. YAZZIE.
VERY IMPRESSIVE RESUME, AGREED.
MAYBE VERY ROBUST AS WELL AND
COMPREHENSIVE. MAY BE LESS OF A
RESUME, MORE OF A CURRICULUM
VITAE, SO TO SPEAK TO YOU HAVE A
VERY, VERY IMPRESSIVE, AND I
WOULD EXPECT NOTHING LESS FROM A
DISTINGUISHED SCHOLAR FROM
DARTMOUTH. BUT WELCOME TO CITY
HALL AND THANK YOU AGAIN FOR
YOUR WILLINGNESS TO SERVE OUR
INDIGENOUS COMMUNITIES, TIA AND
OUR ENTIRE CITY. YOUR ACADEMIC
BACKGROUND IS COMPREHENSIVE AND
DEMONSTRATES A HOLISTIC
UNDERSTANDING OF INDIGENOUS
ISSUES AND NEEDS. IN MY EYES YOU
ARE EXCEPTIONALLY WELL-QUALIFIED
AND BELONG AND DESERVING OF THE
HONOR OF SERVING ON THIS BOARD,
AND AGAIN I'M PROUD TO BE ABLE
TO ENDORSE YOUR APPOINTMENT HERE
TODAY. SO THANK YOU. THANK YOU.
COUNCILMEMBER STEVENSON, REALLY
APPRECIATE HIS SERVICE TO THE
MUCKLESHOOT PEOPLE AND TO THE
BROADER INDIGENOUS COMMUNITY OF
SEATTLE. HIS 25 YEAR CAREER
SERVING THE MUCKLESHOOT PEOPLE
IS TRULY A TESTAMENT TO HIS
POSITION OR HIS PASSION ABOUT
BUILDING A SUSTAINABLE AND
SUCCESSFUL FUTURE FOR SEATTLE
TRIBES. AND I AM AGAIN HONORED
TO BE ABLE TO VOTE IN SUPPORT OF
HIS REAPPOINTMENT TODAY, AND
THANKFUL HE'S DECIDED TO
CONTINUE TO SERVICE SERVICE IN
THIS MANNER. AND LAST BUT NOT
LEAST, IN REVERSE ORDER HERE,
MS. ESTHER LUCERO. HER
COMMITMENT TO THE HEALTH AND
WELL-BEING OF TRIBAL MEMBERS AND
HER EXPERIENCE ACROSS A WIDE
RANGE OF INDIAN HEALTH GROUPS IS
BOTH INSPIRING AND IMPRESSIVE.
IT DEMONSTRATES FOR ME
PERSONALLY HER FOCUSED,
UNRELENTING PASSION FOR
IMPROVING THE LIVES OF
INDIGENOUS PEOPLE. BUT NOT JUST
THOSE FROM INDIGENOUS
BACKGROUNDS, BUT ALL OF US
BENEFIT WHEN PEOPLE FROM
INDIGENOUS BACK ROUNDS ARE ABLE
TO THRIVE AND ACHIEVE THEIR TRUE
POTENTIAL IN LIFE. SO AGAIN,
HONORED AND PLEASED TO BE ABLE
TO SUPPORT ALL THE PROPOSED
SLATE TODAY AND THANK YOU AGAIN
FOR BEING WILLING TO SERVE IN
SUCH A WAY. THANK YOU, CHAIR.
>> THANK YOU COUNCILMEMBER SAKA.
MY LAST COMMENT TO USE HOPEFULLY
WE'LL SEE YOU ON THIS SIDE OF
THE DAY IS. IMPRESSIVE RESUME
AND WE ARE LOOKING -- THANK YOU
FOR YOUR VOLUNTEER SERVICE.
>> THANK YOU.
>> ABSOLUTELY. WITH THAT,
COLLEAGUES, UNLESS THERE ARE ANY
FURTHER QUESTIONS, I WOULD LIKE
TO READ ITEMS, JUST PULL UP THE
CORRECT NUMBERS HERE,
APPOINTMENTS 3267, 3268 AND
3269. AND MOVE APPOINTMENTS
3267, 68 AND 69. IS THERE A
SECOND?
>> SECOND.
>> IT HAS BEEN MOVED AND
SECONDED TO RECOMMEND
CONFIRMATION OF APPOINTMENTS
3267, 68 AND 69. FINAL COMMENTS,
SIMON, WILL THE CLERK PLEASE
CALL THE ROLL?
>> COUNCILMEMBER KETTLE.
>> AYE.
>> COUNCILMEMBER SAKA.
>> AYE.
>> CHAIR STRAUSS.
>> AYE.
>> THAT IS THREE IN FAVOR AND
ZERO OPPOSED.
>> FANTASTIC. THE COMMITTEE
RECOMMENDATION OF THE
APPOINTMENTS 327369 WILL BE
CONFIRMED TO SEND TO THE TO THE,
AUGUST 12 CITY COUNCIL MEETING.
YOU DON'T NEED TO ATTEND IF YOU
DON'T WANT TO. I REALLY
APPRECIATE YOU COMING DOWN
TODAY. THANK YOU FOR ALL YOUR
WORK. WITH THAT, PERSONALLY, YOU
WANT TO COME ON UP, WE WANT TO
MOVE ON TO ITEM 4 POINT WE'LL
NOW MOVE ON TO OUR SECOND AGENDA
ITEM FOUR, WILL THE CLERK READ
THE SHORT TITLE INTO THE RECORD?
>> ITEM 4, AN ORDINANCE RELATING
TO PUBLIC WORKS CONTRACTS, AMEND
PROVISIONS AT THE SMALL WORK
ROSTER AND CONTRACT BOND PROCESS
TO ALIGN WITH STATE LAW.
DISSONANCE SECTIONS 20.4 .020
AND 20.48 .010 OF THE SEATTLE
MUNICIPAL CODE. THIS ITEM IS FOR
BRIEFING AND DISCUSSION.
PRESENTERS WILL BE PRESLEY
PALMER AND MARK NAKAGAWA.
DEPARTMENT OF FINANCE AND
ADMINISTRATIVE SERVICES.
>> THANK YOU. GOOD MORNING.
GREAT TO SEE YOU, PRESLEY AND
MARK, AND IF YOU WANT TO PULL
YOUR PRESENTATION UP --
>> UP ON THE SCREEN OR THE
SCREEN?
>> WE'LL NEED TO PULL IT UP ON
THE COMMITTEE TABLE SCREEN, SO
MEGAN, I'LL HELP YOU OUT AND
I'LL SPEAK A LITTLE BIT ABOUT
WHAT WE'RE ABOUT TO GET INTO.
THIS IS A TECHNICAL CHANGE TO
BRING US IN LINE WITH STATE CODE
AND IT'S A REALLY EXCITING
OPPORTUNITY, SMALL WORKS
ROSTERS, AND IN THIS CASE WE ARE
GOING TO BE BREAKING DOWN
BARRIERS FOR OUR SMALLEST
BUSINESSES AND MAKING IT EASIER
FOR PEOPLE -- I DON'T NEED TO
STEAL ALL OF PRESLEY'S SHOW AND
MARK'S SHOW SINCE THE
PRESENTATION IS UP. PRESLEY AND
MARK, WERE YOU HERE FOR PRIORITY
HIRE AS WELL OR WAS THAT -- NO,
SO PRESLEY HAS BEEN WITH US
RECENTLY FOR THE PRIORITY HIRE
CHANGES THAT WE MADE EARLIER
THIS YEAR. EXCITED TO HAVE YOU
BACK SO WITH THAT, IF YOU'D LIKE
TO INTRODUCE YOURSELVES AND TAKE
US AWAY THROUGH THE
PRESENTATION. AND COLLEAGUES, WE
DO NOT HAVE A PACT AGENDA TODAY
COMPARED TO LAST WEEK SO IF YOU
WANT TO ASK BASTIONS ALONG THE
WAY, FEEL FREE TO. AND AS I WAS
REMINDED EARLIER, WE HAVE TO
SPEAK DIRECTLY INTO THE
MICROPHONE AND HAVE IT CLOSE TO
OUR FACE, OTHERWISE IT WON'T
WORK .
>> I KNOW HOW THAT WORKS.
>> GOOD MORNING PRESLEY.
>> GOOD MORNING, HOW ARE YOU
DOING? GOOD TO SEE YOU AGAIN .
I'M JUST GOING TO PULL MY NOTES
UP AND BE READY TO GO HERE.
FIRST OF ALL JUST GO AHEAD AND
INTRODUCE MYSELF. I'M PRESLEY
PALMER. ON THE DIVISION DIRECTOR
FOR PURCHASING AND CONTRACTING
WITH FAS AND WITH ME I HAVE MARK
NAKAGAWA ARE A. HE'S OUR DEPUTY
DIVISION DIRECT, ACTUALLY THE
PUBLIC WORKS CONTRACTING
MANAGER, SO THIS IS MARK'S
PROGRAM THAT WE ARE HERE TO
PRESENT ABOUT. AND BEFORE I GET
STARTED, I JUST WANTED TO GIVE
YOU SOME HIGHLIGHTS ON -- MAKE
SOME HIGHLIGHTS ON WHY WE ARE
HERE. SO FBS MANAGES CITYWIDE
CONTRACTING, PURCHASING AND
CONTRACTING. THIS INCLUDES
SETTING POLICIES, SETTING
DIRECTIONS FOR HOW WE MOVE
FORWARD AND HOW WE DO PUBLIC
WORKS, HOW WE DO ALL THE REST OF
OUR CONTRACTING. AS FAR AS
PUBLIC WORKS CONTRACTING GOES,
THERE IS DIFFERENT LEVELS OF
CONTRACTS THAT HAPPENS WITHIN
THEIR. MANY OF THE CONTRACTS
THAT HAPPENS WITHIN PUBLIC WORKS
ARE 500,000 ALL THE WAY INTO
MULTIMILLION DOLLAR CONTRACTS.
WE SEE IT AT THE WATERFRONT,
MULTIMILLION DOLLAR CONTRACT .
THOSE ARE NOT THE CONTRACTS THAT
WE ARE TARGETING FOR THIS
CONVERSATION. THE CONTRACTS WE
ARE TARGETING ARE CONTRACTS THAT
FALL UNDER $350,000. THESE ARE
CONTRACTS WHERE WE THINK SMALL
CONTRACTORS CAN COMPETE AT A
BETTER LEVEL AND WHAT WE HAVE
NOW IS WE HAVE A STATE LAW
CHANGE THAT HAS IMPROVED ON HOW
WE CAN WORK WITH THESE
CONTRACTORS. AND THAT'S WHAT
WE'RE HERE TO TALK ABOUT TODAY,
IS WHAT THAT CHANGES ARE AND
WHAT WE ARE ASKING FOR, FOR YOU
ALL TO SUPPORT US IN CHANGING.
SO WITH THAT, I CAN MOVE ON AND
LESS YOU HAVE ANY QUESTIONS
BEFORE I GO.
>> JUST A CLARIFICATION, AND
WHEN YOU'RE CONTRACTING
SERVICES, FOR MOST CONTRACTS YOU
HAVE TO PUT OUT A REQUEST FOR
PROPOSAL OR A DIFFERENT ACRONYM
THAT IS ESSENTIALLY SOLICITING
BID, IS THAT CORRECT?
>> THAT'S CORRECT, YOU.
>> HOW MUCH TIME DOES THAT TAKE?
>> IT ALL DEPENDS. MARK, YOU CAN
PROBABLY ANSWER FOR THE PUBLIC
WORKS ASPECT OF HOW LONG THAT
WOULD TAKE FOR US.
>> AT A MINIMUM IT WOULD TAKE --
AT A MINIMUM IT WOULD TAKE
PROBABLY THREE WEEKS AND THAT'S
KIND OF THE ADVERTISING PERIOD
BUT WHAT THAT DOESN'T
NECESSARILY CAPTURE IS THE
PREPARATION OF THE ADVERTISEMENT
DOCUMENTS THAT YOU WOULD HAVE TO
COMMUNICATE TO HAVE SOMEONE BE
ABLE TO LOOK AT IT AND HAVE A
FAIR IDENTIFICATION OF ALL THE
ELEMENTS THAT THEY'RE GOING TO
BE PERFORMING. SO THAT FRONT END
WORK ACTUALLY KIND OF TAKES A
LOT TO MAKE SURE YOU HAVE ALL
THE LETTER I'S DOTTED AND T'S
CROSSED TO MAKE SURE YOU'RE
PROVIDING A UNIFORM REQUEST FOR
THEM TO BID UPON. SO I WOULD SAY
AT A MINIMUM YOU'RE PROBABLY
LOOKING AT AT LEAST EIGHT WEEKS
BEFORE THE CAPITAL DEPARTMENT
COULD ACTUALLY PREPARE SOMETHING
WHERE YOU WOULD ASK HER ACTUALLY
ADVERTISE IT. THE ADVERTISING
COMPONENT TAKES ABOUT THREE
WEEKS MINIMUM BUT EVEN AFTER
THAT, ONCE YOU ACTUALLY IDENTIFY
THAT BUSINESS, THEN THERE'S
STILL PROCESSES THAT HAVE TO GO
ALONG, MAKING SURE THEY HAVE THE
INSURANCE, MAKING SURE THE [
INAUDIBLE ], SO IT IMPACTS THE
CAPITAL DEPARTMENT SIGNIFICANTLY
IN TERMS OF GOING DOWN THE
TRADITIONAL, WHAT WE KIND OF
REFERRED TO AS TRADITIONAL
PUBLIC WORKS OR DESIGN BID BUILD
PROCUREMENT METHODS.
>> THANK YOU. THAT HELPS
ILLUSTRATE THE FACT THAT FOR --
WHEN SOMETHING COMES ACROSS, AND
I'M GOING TO HAVE A BAD EXAMPLE
BUT LET'S SAY ONE OF OUR
LIBRARIES NEEDS PRESSURE WASHING
OR ONE OF OUR SERVICE CENTERS
PRESSURE WASHING BUT EVERYONE
WHO WORKS FOR THE CITY THAT DOES
PRESSURE WASHING IS ALREADY BUSY
ON THEIR TASKS. YOU WOULD NEED
TO GO OUT AND GET A REQUEST FOR
PROPOSAL. THAT WOULD ADD TWO
MONTHS MINIMUM TO GETTING THAT
JOB DONE.
>> POTENTIALLY, IF YOU HAD A
PUBLIC WORKS TASK OF THAT
NATURE, IT COULD TAKE, YEAH,
THAT MUCH MORE TO TRY TO
BROADCAST AN ADVERTISEMENT AND
HOPE THAT YOU GET SOMEONE TO
FIND, TO DO THAT SERVICE OR
NETWORK, YET . SO THERE'S
DIFFERENT -- I DON'T WANT TO
GET INTO THE NUANCES OF SERVICES
AND PUBLIC WORKS, BUT YES, USING
THAT KIND OF GENERAL EXAMPLE OF
PROCURING A PUBLIC WORKS --
>> SO IT'S YOUR JOB TO PROCURE
THE CONTRACT, TO FIX THE PROBLEM
THAT EVERYONE IS LOOKING AT, AND
YOU KNOW, WITHOUT THE PROGRAM
THAT WE ARE ABOUT TO DISCUSS, IT
COULD TAKE UP TO TWO MONTHS TO
SOLVE A VERY BASIC PROBLEM. I
KIND OF RELATE IT TO
COUNCILMEMBER SAKA'S WAR ON
POTHOLES. IS THE SMALLEST THING
THAT NEEDS TO BE FIXED AND YET
IT'S STARING EVERYONE IN THE I.
WITH THAT WE WANT TO BE QUICK
AND NIMBLE.
>> SO THE SMALL WORKS ROSTER CAN
PROVIDE A LITTLE BIT OF AN
EXPEDITED MEANS TO ACTUALLY
IDENTIFY THE VENDOR TO PERFORM
THE PUBLIC WORKS PROJECT AND TO
KIND OF --
>> NOW THAT WE'VE SET THE
STAGE, PRESLEY, WALK US THROUGH
WHAT WE ARE ABOUT TO CONSIDER IN
COMMITTEE TODAY.
>> PERFECT. I CAN DO THAT. LET
ME MOVE ON TO THE NEXT SLIDE
HERE.
>> SO AGAIN, I'LL JUST GO OFF
MY SCRIPT HERE. RIGHT NOW WE
HAVE AN AGENDA. THE AGENDA IS
BASICALLY WHAT IS A SMALL WORKS
ROSTER. WE WANT TO MAKE SURE WE
OUTLINE WHAT THAT IS. SORRY, I
SAW THAT. WHAT IS A SMALL WORKS
ROSTER? WANT TO OUTLINE WHAT
THAT IS. WE ALSO WANT TO GO
OVER, DO AN OVERVIEW OF THE
CHANGES OF THE STATE LAW ON WHY
WE ARE HERE, AND THE PROPOSED
SEATTLE MUNICIPAL CODE UP DATES
AND WHY DO WE NEED TO MAKE
CHANGES TO THAT? THAT'S THE
MAIN PURPOSE OF THIS MEETING AND
ALSO WE WANT TO TOUCH ON WHAT
THE BENEFITS ARE FOR HAVING A
SMALL WORKS ROSTER. OKAY.
>> FIRST OF ALL, WHAT'S THE
SMALL WORKS ROSTER? SIMPLY PUT A
SMALL WORKS ROSTER IS A LIST OF
PREQUALIFIED FIRMS IN VARIOUS
CATEGORIES THAT WE CAN EXCLUSIVE
INVITE TO BID ON CITY
CONSTRUCTION PROJECTS. THESE ARE
PROJECTS UNDER $350,000. THE
ROSTER WILL ALLOW US, AS YOU
SAID, COUNCILMEMBER STRAUSS, TO
BYPASS THE REQUIREMENTS TO
ADVERTISE AND TO BE INTENTIONAL
HOW WE CONTRACT WITH SMALL
BUSINESSES. AND THAT'S A REALLY
BIG BONUS FOR US HERE.
>> PRESLEY, I'LL ADD IN,
THOUGH, IT DOESN'T ALLOW YOU TO
BYPASS THE PROCESS OF SELECT --
I GUESS CHECKING THEIR
CREDENTIALS, BECAUSE YOU HAVE
PRESELECTED THEM FOR THE SMALL
WORKS ROSTER, IS THAT CORRECT
UNDERSTANDING?
>> THE SMALL WORKS ROSTER WILL
BE DONE AND I'LL TALK A LITTLE
BIT MORE ABOUT WHERE WE COME
THROUGH, SO IT WILL COME THROUGH
AND RSC, WHO WILL BASICALLY HAVE
A VETTING PROCESS WHERE THEY GO
AND HAVE THIS POOL CONTRACTS
THAT ARE ELIGIBLE TO BE PART OF
THAT ROSTER AND YET, SO THEY ARE
VETTED TO SOME EXTENT. THE GOOD
THING ABOUT IT ALSO IS THAT IT
WOULD -- IT WILL ONLY BE THE
CITY THAT USES THIS ROSTER. WE
WILL ALSO BE THERE SERVICES AND
WHAT THEIR PERFORMANCE WILL BE
VETTED BY OTHER REGIONAL --
OTHER PARTNERS WITHIN THE STATE
OF WASHINGTON. SO WITH THAT
VETTING WE ARE ALSO BUILDING UP
THEIR RESUME ON HOW GOOD THEY
ARE. SO UNLESS WE GET THEM 1st
FOR SOME REASON, THAT'S THE
FIRST TIME THEY'VE EVER DONE A
JOB, WHICH WE HOPE WE GET SOME
OF THOSE BECAUSE WE WANT TO BE
THE ONES THAT KIND OF INTRODUCE
THEM TO THE CITY. UNLESS WE GET
THAT, WE WOULD ALREADY HAVE A
TRACK RECORD OF WHAT THEY'VE
DONE WITHIN OTHER AGENCIES AND
ALSO PROBABLY WITHIN OUR AGENCY.
SO THERE IS A SOMEWHAT OF A
VETTING PROCESS. THE GOOD THING
ABOUT IT, WE'RE TALKING ABOUT
RINGS THAT ARE UNDER THE
$350,000 MARK SO THESE COME WITH
A LOT LESS RISK AND A LOT LESS
COMPLEXITY. SO OUR WORRIES ARE
NOT AS MUCH IN THEIR, SO I'LL
TALK A LITTLE BIT MORE ABOUT
THAT LATER, TOO. OKAY, NEXT
SLIDE, TECHNICAL. PUBLIC WORKS
CONTRACT INCLUDING SMALL WORKS
ROSTER PROGRAMS MUST FOLLOW
STATE LAW AND STATE LAW FOR
SMALL WORKS ROSTER WAS REVISED
IN 2023. AND BECAUSE OF THESE
REVISIONS, WE NEED TO MAKE SOME
TECHNICAL UPDATES TO THE
MUNICIPAL, SEATTLE MUNICIPAL
CODE, TO ALIGN WITH STATE LAW
PRIOR TO US IMPLEMENTING OUR
ROSTER PROGRAM. BACK TO THE
SLIDE, SORRY. I JUST WANT TO
KIND OF HIGHLIGHT WHAT DIVISIONS
WERE REAL QUICK. SO THE
REVISIONS FOR THE 2023 STATE
LAW, INCLUDE INCREASING THE
SMALL WORKS ROSTER THRESHOLD TO
$350,000. IT CREATED A STATE
WIDE SMALL WORKS ROSTER SYSTEM,
WHICH IS MANAGED, AS I MENTIONED
EARLIER, BY MUNICIPAL RESEARCH
SERVICE CENTER, AND RSC, WHICH
IS A DIVISION OF THE DEPARTMENT
OF COMMERCE. IT ALSO DIRECTED --
IT ALLOWS FOR DIRECT CONTRACTING
FOR SMALL PROJECTS UNDER
$150,000 AND WE'LL TALK A
LITTLE BIT MORE ABOUT WHAT THAT
DOES. BUT WHAT THAT DOES IS
THAT'S A NONCOMPETITIVE
PROCESS, A DIRECT SELECT OPTION
THAT WE HAVE SO ANYTHING UNDER
$150,000 WE CAN ACTUALLY GO AND
PICK SOMEONE WITHOUT GOING
THROUGH ANY OTHER PROCESS BUT
SIN WE WANT TO WORK WITH THIS
PERSON. SO IT DOES GIVE US THAT
ABILITY TO BE A LITTLE BIT
SELECTIVE IN HOW WE DO IT AND
MORE INTENTIONAL IN HOW WE DO
IT. AND THE LAST THING IT HAS IS
THE REQUIREMENT FOR MORE
REPORTING TO INCREASE
TRANSPARENCY AND ROSTER USE,
MAKING SURE THAT WE ARE ROTATING
THROUGHOUT THIS ROSTER. WE ARE
MAKING SURE WE'RE GIVING
EVERYBODY A CHANCE AND MAKING
SURE THAT IT'S A FAIR PROCESS.
SO IT IS SOMETHING THAT HOLDS US
ACCOUNTABLE TO MAKING SURE THAT
WE DON'T SHOW ANY FAVORITISM IN
THIS PROCESS. NEXT SLIDE. SO AS
FAR AS THE UPDATES TO THE
SEATTLE MUNICIPAL CODE, THERE'S
THREE THINGS THAT WE ARE ASKING
FROM YOU ALL TO SUPPORT US IN
AND BE ONE THING IS TO UPDATE
THE LEGAL REFERENCE TO MATCH THE
STATE LAW, AND TO REPLACE RULES
WITH POLICIES AND PROCEDURES TO
PROVIDE MORE FLEXIBILITY AND
ADMINISTRATION OF THE PROGRAM.
AND TO MAKE SURE WE WRITE IN THE
ALLOWANCE FOR THE CITY TO USE
THE STATE ROSTER INSTEAD OF
READING OUR OWN. AND AGAIN,
THESE ARE TECHNICAL CHANGES AND
THEY'RE MINOR BUT THEY'RE
NECESSARY, BECAUSE IT'S VERY
IMPORTANT THAT WE DO ALIGN WITH
STATE LAW. AND LAST I WILL TALK
ABOUT THE BENEFITS SO HERE'S
SOME REAL BENEFITS FROM
IMPLEMENTING A SMALL WORKS
ROSTER WITH THE CITY OF SEATTLE.
WE FEEL WE KNOW THAT THE ROSTER
WILL HELP ADVANCE CONTRACTING
EQUITY AND MAKE DOING BUSINESS
WITH THE CITY FOR SMALL
BUSINESSES A LOT EASIER. WE ARE
ESPECIALLY EXCITED, AS I
MENTIONED EARLIER, ALSO ABOUT
THE ABILITY TO DO CONTRACT WITH
FOR FOUR OPPORTUNITIES THAT FALL
UNDER $150,000. THIS BENEFIT
ALIGNS WITH THE MAYOR'S
EXECUTIVE CREATING MORE PRIME
CONTRACTING OPPORTUNITIES FOR
SMALL BUSINESSES, FOR SMALLER
PROJECTS. AND IN ADDITION TO THE
ABILITY TO DIRECT CONTRACT WITH
SMALL BUSINESSES, THE OPTION FOR
RETAINING TOLLING, AND I WANT TO
CORRECT YESTERDAY ON RETAINAGE
HOLDING BUT WE HAVE THE OPTION
FOR RETAINAGE HOLDING IN THE
MIDDLE OF A CONTRACT BOND FOR
THE POSSIBILITY TO SMALL FOR US,
BECAUSE MANY SMALL FIRMS CANNOT
EASILY OBTAIN OR AFFORD A BOND
FOR DOING PUBLIC WORKS
CONTRACTS. SO BACK TO WHAT THE
RETAINAGE HOLDING IS, BASICALLY
WHAT THAT IS IS IT'S A -- IT'S
AN AMOUNT OF MONEY, IN THIS CASE
IT WOULD BE 10% OF WHAT THE COST
IS OF $150,000, SO $15,000
BASICALLY THAT WOULD BE HELD
UNDER THE CONTRACT UNTIL THE JOB
IS COMPLETE, AND IT WOULD
BASICALLY MAKE SURE THAT
EVERYTHING WAS DONE RIGHT,
EVERYTHING WAS PERFORMED THE WAY
IT SHOULD OF BEEN SO THAT'S
WHAT'S HELD FROM THE CONTRACT
AND AFTER THE CHECK IS OFF,
AFTER EVERYTHING IS VALIDATED
THEN THEY'LL PAY THAT LAST PART
SO THAT'S WHAT THAT IS. THAT'S
ACTUALLY A REALLY BIG THING AND
WE'VE HEARD THAT A LOT IN SOME
OF OUR COMMUNITIES, ON HOW HARD
IT IS TO GET THE BONDS. ALSO THE
ABILITY TO CONTRACT WITH SMALL
BUSINESSES WITHOUT ADVERTISING
AND MAKING THE STATEWIDE ROSTER
SYSTEM A STREAMLINED TO BIDDING
AND DOCUMENT PROCESSES IS A VERY
GREAT AND IF IT SO WHAT THIS
DOES IS IT GIVES CONTRACTORS A
SINGLE STANDARDIZED APPLICATION
AND PROCESS FOR WORKING WITH
PEOPLE PUBLIC AGENCIES ACROSS
THE STATE. IT REMOVES BARRIERS,
ESPECIALLY FOR SMALL AND
HISTORICALLY UNDERREPRESENTED
BUSINESSES, BUSINESSES WHO ARE
TRYING TO NAVIGATE MULTIPLE
SYSTEMS JUST TO FIND
OPPORTUNITIES. SO WITH THAT, I
REALLY WANT TO THANK YOU FOR
YOUR -- IN ADVANCE FOR YOUR
SUPPORT IN OUR EFFORTS ON THIS
AND OPEN IT UP FOR QUESTIONS.
>> THANK YOU SO MUCH.
COLLEAGUES, ANY QUESTIONS? I'M
SEEING COUNCILMEMBER SAKA.
>> THANK YOU CHAIR AND THANK YOU
FOR THIS PRESENTATION TODAY.
REALLY APPRECIATE IT, I GUESS
FIRST AND FOREMOST AS AN ASIDE,
MR. CHAIR, THANK YOU FOR YOUR
PARTNERSHIP AND HELPING US AS A
CITY AND AS A COUNCIL WAGE A
VERY AGGRESSIVE AND AMBITIOUS
WAR AGAINST POTHOLES. IT IS A
CONTINUING, ONGOING FIGHT THAT
WE ARE PURSUING RELENTLESSLY.
GOVERNMENT CONTRACTING, I LOVE
THIS. AS A FORMER COMMERCIAL
CONTRACTING LAWYER,
NONPRACTICING TECHNOLOGY LAWYER
THESE DAYS, BOTH ON THE SERVICES
SUPPLY-SIDE AND PURCHASE SIDE AS
WELL OF CONVENTIONAL SERVICES,
TECHNOLOGY IMPLEMENTATION
SERVICES, INTANGIBLE IP,
LICENSING INBOUND, OUTBOUND, I
WORKED ON A LOT OF THIS STUFF IN
A DIFFERENT CONTEXT AND SO TRULY
DO GEEK OUT ABOUT THIS BUT --
WHICH MEANS I HAVE NO LIFE. BUT
IN ANY EVENT, SO THIS -- SO WHAT
WE ARE DOING HERE IS MAKING SOME
TECHNICAL TWEAKS TO CITY CODE,
TO ALIGN WITH SOME 2023 CHANGES
TO STATE LAW THAT GOVERN THIS
UNDERLYING WORK, AND AS PART OF
THE RECENT STATE LAW CHANGES,
CAN YOU VERIFY, DID THE ROSTER
THRESHOLD -- WAS THAT INCREASED
$350,000? DOES THAT REPRESENT A
NET LEASE FROM A PRIOR AMOUNT,
AND IF SO, WHAT WAS THE PRIOR
THRESHOLD AMOUNT?
>> I WAS GOING TO. DID WE GET
THE PRIOR THRESHOLD ON THAT? I
KNOW IT WAS A LOT MORE.
>> YEAH. THE -- SO LEGISLATURE
CURRENTLY IS ACTUALLY ADDRESSING
THE CURRENT THRESHOLD OF THE
SMALLER SMALL WORKS ROSTER
OBVIOUSLY BECAUSE THAT THRESHOLD
OF $350,000 PROBABLY DOESN'T
BUY AS MUCH AS A USED TO WHEN
ORIGINALLY PLANTED, SO THAT'S
ACTUALLY AN ONGOING THING THAT
THE STATE IS WORKING FOR. ONE OF
THE MAIN CHANGES IS THAT THE
PREVIOUS PARADIGM OF SMALL WORKS
ROSTER IS THAT WOULD HAVE LIKE
INDIVIDUAL MUNICIPALITIES ,
PUBLIC UTILITY DISTRICTS. I MEAN
EVERYONE WOULD HAVE THEIR OWN
ROSTER. SAID HE WOULD LITERALLY
HAVE CONTRACTORS THAT 00, I
SHOULD BE ON YOUR ROSTER, AND
THEY APPLIED FOR THE CITY OF
SHORELINE ROSTER OR ANOTHER
JURISDICTION THINKING THAT
THEY'RE ALSO ON THE SEATTLE
ROSTER BECAUSE A LOT OF PEOPLE
DON'T TRULY KNOW WHERE THE
BOUNDARY LINES ARE, AND THEN
THEY GO YOU'RE NOT ON THE
SEATTLE ROSTER, YOU'RE ON
WHATEVER SHORELINE WERE EVERETT
AND IT WAS A LOT OF WORK FOR THE
SMALL BUSINESSES THAT DO THIS.
SO THIS NEW ROSTER, THE
STATEWIDE ROSTER IS GOING TO
PROVIDE A LOT OF SMALL
BUSINESSES THE OPPORTUNITY TO
JUST DO IT ONCE, BE WHEREVER
THEY WANT TO BE, ELIGIBLE TO
HAVE THEIR BELT RUN FOR THAT
WORK AND THAT'S KIND OF THE
MAIN THING. SAID THE REFERENCES
IN THE STATE STATUTE DIDN'T
REALLY REFER TO ROSTERS PER SE
AS A STATE ROSTER. THEY KIND OF
RELATE TO THE USE OF YOUR OWN
ROSTER, WHICH WAS KIND OF
LABOR-INTENSIVE AND IS ALSO KIND
OF JUST A LOT OF SMALL
BUSINESSES DIDN'T WANT TO DO IT
BECAUSE IT WAS JUST I DON'T
KNOW WHEN I'M GOING TO GET --
BUT NOW THAT ANY JURISDICTION
COULD KIND OF RING THEM UP, IT
CHANGES THE NATURE OF THE DESIRE
TO ACTUALLY DO THE PAPERWORK FOR
JUST ONE INSTEAD OF LIKE I'M
GOING TO DO SHORELINE, SEATTLE,
WHATEVER AREA THAT I WANT TO BE
-- NOW THEY CAN JUST DO IT AND
GET CALLED FOR ANYWHERE.
>> THE WEEKS SINCE. I DEFINITELY
SEE THE VALUE IN TERMS OF
MINIMIZING THE ADMINISTRATIVE
BURDEN FOR BOTH THE SUPPLIER AND
THE PURCHASER OF THESE SERVICES,
AND STREAMLINING IT MAKES A LOT
SENSE FOR THE STATE TO KIND OF
STEP IN AND STREAMLINE THE
PROCESS AND CREATE A CENTRALIZED
LIST, SO TO SPEAK, BUT THERE'S
STILL -- SEATTLE MIGHT HAVE ITS
OWN POINT OF VIEW ON THE
PREFERRED SUPPLIERS AND WHICH --
AND HOW TO CURATE THAT LIST AND
ADD SUPPLIERS, IN SOME CASES
SUPPLIERS. SAME THING FOR
KENMORE OR WHATEVER OTHER
JURISDICTIONS. WAS OUR ABILITY
AS A CITY TO INFLUENCE THAT
CURATED LIST THAT IT SOUNDS LIKE
THE STATE MAINTAIN? DO WE HAVE
DIRECTION CONTROL OVER ADDING
AND PROVIDING FEEDBACK ON THE
ONGOING MAINTENANCE OF THAT
LIST, SINCE WE ARE ESSENTIALLY
BOUND TO USE IT FOR PURPOSES OF
THESE CONTRACTS?
>> THAT LIST RIGHT THERE, THAT
WILL BE INFLUENCED BY US AND
INFLUENCED ACTUALLY BY ALL
AGENCIES THROUGHOUT THE STATE.
WHAT WE TRY TO DO IS WE TRY TO
WORK WITH PLACES LIKE TAYLOR 100
FOR TECHNICAL ASSISTANCE, AND
WORKING WITH THE COMMUNITY TO
TRY TO MAKE SURE THAT WE ARE
IDENTIFYING THEM, MAKING SURE
THAT WE ARE INTRODUCING THEM TO
THE PROCESS. THIS IS GOING TO BE
SOMETHING THAT WE HAVE OUR PLAN
OUT THAT WE ARE GOING TO HAVE TO
GO AND EDUCATE, MAKE SURE THAT
WE ARE PUTTING PEOPLE INTO THAT
POOL, THE ONES THAT ARE ELIGIBLE
SHOULD BE ELIGIBLE, SO EVERYONE
THAT WE WOULD'VE WORKED WITH,
EVEN IF WE WERE, AS MARK SAID,
IF WE HAD TO START OUR OWN,
THOSE ARE THE SAME FOLKS WE ARE
GOING TO PUSH INTO THAT POOL AND
WE WILL WORK CLOSE WITH MRSC TO
MAKE SURE THAT WE ARE ALIGNED
WITH THAT, AND WE DO THAT WITH
ALL THE OTHER THING TO DO. WE
HAVE, WHAT WE'VE BEEN DOING
RIGHT NOW IS IN 2012 WHEN WE DID
HAVE -- WHEN WE WENT AWAY FROM
OUR SMALL WORKS ROSTER AT THAT
TIME AND WE WENT INTO WHAT WE
CALL A JOB CONTRACTING
AGREEMENT. SO THAT'S -- WHEN WE
DID THAT WE TRIED TO PUSH A LOT
OF THOSE AGENCIES -- NOT
AGENCIES, SORRY, A LOT OF THOSE
CUSTOMERS INTO THE JOB ORDER
CONTRACTING POOL SO THAT THEY
COULD GET WORK IN THERE. NOW WE
ARE ALSO TRYING TO BALANCE THAT
WITH THE SMALL WORKS ROSTER. AND
IF YOU HAVE MORE QUESTIONS ABOUT
WHAT THE JOB ORDER CONTRACT DOES
IN CONTRAST TO WHAT THE SMALL
WORKS ROSTER DOES, WE CAN
DEFINITELY ANSWER THAT, AS WELL
POINT
>> THANK YOU, NO, VERY HELPFUL.
CAN YOU HELP ME BETTER
UNDERSTAND WHAT IS THE TOTAL
ANTICIPATED SPEND AMOUNT UNDER
THIS NEW PROGRAM THAT WE CAN
EXPECT AS A CITY TO SPEND?
>> YEAH MARK --
>> THAT'S KIND OF HARD TO SAY
BECAUSE IT REALLY DEPENDS
OBVIOUSLY ON THE CAPITAL
DEPARTMENT'S NEEDS AND STUFF
LIKE THAT BUT OVER THE LAST 24
MONTHS WE KIND OF PULLED ALL OF
THE PROJECTS THAT WE HAD THAT
WERE UNDER $350,000 BODIES OF
WORK. SO WITHIN THAT, TYPICALLY
WHAT'S USED OR WHAT WE REFERRED
TO AS THE JOB ORDER CONTRACT
OFTENTIMES YOU MIGHT NOTICE THE
CAPITAL DEPARTMENTS MIGHT REFER
TO IT AS THE JOB. THERE'S NO K
ON IT BUT WE HAVE 36 WORK ORDERS
THROUGH THE JOB ORDER CONTRACT
IN THE LAST 24 MONTH. EQUALLY WE
ONLY HAVE SIX , WHAT ARE
REFERRED TO TRADITIONALLY DESIGN
BUILD PROJECTS THAT ARE UNDER
$350,000 IN THE PAST TWO MONTHS
OR THE PAST TWO YEARS, 24
MONTHS, THAT WERE KIND OF
ADVERTISED AND THAT REQUIRED
ADVERTISING. SO LOOKING AT LIKE
ANYWHERE LIKE 20-25 A YEAR, THAT
THIS FALLS UNDER. THE CITY IS A
LITTLE BIT DIFFERENT BECAUSE WE
DO HAVE CITY CREW AND AS A
FIRST-CLASS CITY WE WERE ALLOWED
TO DO WORK UP TO 150,000 --
ALLOWED TO DO PUBLIC WORKS, NOT
NECESSARILY SERVICES OR REPAIRS,
OR REGULAR MAINTENANCE. I THINK
IT'S REFERRED TO STATUTORILY AS
ORDINARY MAINTENANCE BUT WE'RE
ALLOWED TO DO, WITH OUR OWN CITY
CREWS, PUBLIC WORKS UP TO
$150,000 THRESHOLD. SO WE'RE IN
A LITTLE BIT DIFFERENT
SITUATION, RIGHT? BECAUSE WE
HAVE THAT ABILITY. SO I THINK
THAT'S KIND OF WHY THE LIST IS
PROBABLY ROUGHLY 20-25 A YEAR
UNDERNEATH THAT SMALLER BODY OF
WORK, WHERE THE REMAINDERS ARE
OVER, YOU KNOW, $350,000. JUST A
DIFFERENT SCALE OF PROJECTS. I
WOULD ANTICIPATE THAT WE ARE
PROBABLY LOOKING AT POTENTIAL
OPPORTUNITIES, 20-25 BUT THE JOB
ORDER CONTRACT IS STILL GOING TO
BE UTILIZED, TOO SO IT'S REALLY
HARD TO SAY HOW THE CAPITAL
DEPARTMENTS REALLY WANT TO
MANAGE IT OR WHAT THE BODY OF
WORK REALLY CALLS FOR, SO
THERE'S ADVANTAGES TO EACH,
OBVIOUSLY, AND IT'S REALLY
GOING TO BE AT THE CAPITAL
DEPARTMENT'S DISCRETION TO MAKE
THAT DETERMINATION WHICH ONE IS
BEST FOR THEM.
>> TOTALLY UNDERSTAND THAT AND
IF UNABLE TO, AT THIS TIME,
PROVIDE A ROUGH ESTIMATE ON A
GOING FORWARD BASIS OF THE
PROJECT DID SPEND IS, TOTALLY
UNDERSTAND, LOOKING BACK,
THOUGH, SOUNDS LIKE THERE IS A
BASIS. LESS INTERESTED IN THE
NUMBER OF CONTRACTS, ALTHOUGH
ESPECIALLY GIVEN THE THRESHOLD
OF 300 50, YOU COULD PROBABLY
DRAW SOME REASONABLE INFERENCES
THERE IF YOU WOULDN'T MIND
FOLLOWING UP OFF-LINE, LOOKING
BACK THE LAST TWO, FOR EXAMPLE,
ALL THE CONTRACTS, WHAT IS THE
TOTAL SPEND AND FROM THAT YOU
COULD PROBABLY INFER --
>> I COULD GET THAT, TOO.
>> THANK YOU, THANK YOU. FINAL
QUESTION IS -- SO I GUESS FIRST
OFF, CAN YOU HELP CLARIFY? FAS
CONTRACTS ON BEHALF OF ALL THE
38-PLUS CITY DEPARTMENTS AND
AGENCIES, RIGHT?
>> YES.
>> OKAY. SO CAN YOU HELP ME AND
MEMBERS OF THE PUBLIC BETTER
UNDERSTAND, LIKE WHAT IS THE --
THIS IS MORE THAN JUST WORDS ON
A PAPER. THIS IS MORE THAN JUST
LEGISLATION THAT WE ARE GOING TO
BE CALLED UPON TO CONSIDER AND
APPROVE, BUT CAN YOU HELP
ILLUMINATE AND BRING THIS REALLY
IMPORTANT WORK TO LIFE FOR
EVERYONE? WHAT ARE SOME OF THE
SCOPE OF SERVICES, HIGH LEVEL,
THAT THIS PERFORMS FOR, THAT
THIS WOULD UNLOCK THE ABILITY TO
DO FOR S., FOR EXAMPLE, OR
PARKS, OR PICK A DEPARTMENT?
LIKE WHAT ARE SOME OF THE TYPES
OF SERVICES THAT GENERALLY FALL
UNDER THE $350,000 THRESHOLD,
GIVEN THE SUPPLIERS THAT WE
KNOW? WHAT KIND OF WORK WOULD BE
PERFORMED?
>> I CAN TAKE THAT. WITH THE
STATE, THE RCW, THE 3904, THE
DEFINITION OF PUBLIC WORKS IS
FAIRLY WIDE SO IT PRETTY MUCH
CAPTURES ANY PUBLIC EXPENDITURE
OF ANY TYPE OF WORK ON WHAT I
KIND OF TYPICALLY SAY ON REAL
PROPERTY, ALL RIGHT, OR
FACILITIES THAT'S NOT -- AND
I'M GOING TO USE THE QUOTES,
ORDINARY MAINTENANCE. SO WHAT
THAT IS, I'M NOT NECESSARILY
SURE BECAUSE THAT'S NOT
NECESSARILY DEFINED IN THE
STATUTE SO YOU COULD REPLACE A
DOOR, YOU CAN DO PAINTING OF A
NEW ROOM, YOU CAN DO A WALL, YOU
COULD INSTALL A NEW BREAK ROOM
FOR YOUR S.CREWS. YOU COULD DO A
NEW RENOVATION, A TENANT
IMPROVEMENT FOR AN OFFICE. YOU
COULD DO NEW GUTTERS, A NEW
ROOF, ANY OF THOSE THINGS THAT
KIND OF HAPPENED. IT'S WIDE AND
EXPENSIVE IN TERMS OF WHAT THE
PUBLIC WORKS, AS THAT DEFINITION
IN THE STATUTE CAPTURES. YOU
KNOW, SO IT'S KIND OF ONE OF
THE PROBABLY THE CHALLENGES THAT
WAS CAPITAL DEPARTMENTS HAVE, IS
THAT JUST CAN'T PAY FOR PUBLIC
WORKS, RIGHT? YOU HAVE TO
CONTRACT THROUGH IT AND YOU HAVE
TO USE THE NEW IT. AND THERE'S
NO BOTTOM LINE THRESHOLD. IT'S
NOT LIKE WE COULD DO PUBLIC
WORKS UNDER $100,000, ANYTHING
LIKE THAT. PUBLIC WORKS IS LIKE
TWO DOLLARS COMING UP YOU COULD
GET ANYTHING FOR 2 DOLLARS AND
IT'S LIKE ONE HOUR OF WORK
COULD TECHNICALLY BE PUBLIC
WORKS SO THAT'S KIND OF THE
CHALLENGES THAT WE ALWAYS FACE
AS A CITY, TO ACTUALLY PROCURE
THESE THINGS CORRECTLY AND SO
ANY OF THE TRADES YOU WOULD
THINK, PAINTING, PLUMBING,
ELECTRICAL, ANYTHING THAT'S NOT
ORDINARY MAINTENANCE KIND OF
FALLS UNDER THAT CATEGORY, SO
YOU CAN IMAGINE BETWEEN SEATTLE
CENTER, SEATTLE CITY LIGHT,
SEATTLE PUBLIC UTILITIES,
ESTAPA, PARKS, THERE'S A LOT OF
WORK THAT CAN BE DONE THROUGH
SMALL WORKS ROSTER ,
POTENTIALLY, OR PROVIDING THOSE
OPPORTUNITIES FOR THOSE SMALLER
BUSINESSES.
>> I THINK ONE THING I WOULD
WANT TO ADD IS OUR GOAL IS TO
MAKE SURE THAT WE SPEAK WITH THE
DEPARTMENTS AND MAKE SURE THAT
WE TRY TO MAKE SURE THAT THEY
UNDERSTAND THAT WE WANT TO BE
INTENTIONALLY WHAT WE'RE DOING
HERE. THEY DO HAVE CHOICES. THIS
GIVES THEM ANOTHER CHOICE. WANT
TO MAKE SURE TO UTILIZE THIS
CHOICE AND UTILIZE IT TO THE
MOST THAT CAN BE UTILIZED
BECAUSE I THINK IT'S A GREAT
OPPORTUNITY, BECAUSE MANY OF
THESE BUSINESSES WILL COME IN
AND THIS IS THEIR LEVEL.
DEPARTMENTS TO HAVE THE
POSSIBILITY AND THE OPTION TO BE
ABLE TO BROADEN THAT OUT BUT
WE'RE GOING TO TRY TO SEE IF WE
CAN WORK WITH THEM TO TRY TO
ALWAYS KEEP THIS IN MIND WHEN
THEY'RE BUILDING THEIR
PROJECTS, ALWAYS KEEP BECAUSE
IT'S NOT ONLY ABOUT JUST THAT
SINGLE DOLLAR BUT IT'S ALSO
ABOUT WHERE WE ARE -- WE ARE
GETTING AND WHO WE ARE PAYING
THOSE DOLLARS TO. THAT'S ONE
THING WE HAVE A ROADMAP TO MAKE
SURE WE ARE TALKING TO THE
DEPARTMENTS ABOUT THE IMPORTANCE
OF THE WORK DONE WITH THESE
LIMITS HERE AS WELL.
>> IN ADDITION TO KIND OF MAKING
SURE THOSE OPPORTUNITIES, THE
CITY BENEFITS FROM HAVING A
STRONGER POOL OF EXPERIENCED
VENDOR CONTRACTORS TO DO THEIR
WORK. YOU KNOW, JUST
AVAILABILITY IS ONE THING AND
THE MORE THAT WE HAVE THAT HAVE
EXPERIENCED, HOPEFULLY THROUGH
THIS PROGRAM, THE BETTER OFF THE
WHOLE REGION IS, HONESTLY. IN
TERMS OF FINANCES TO THE SMALL
BUSINESSES AND THE ABILITY FOR
THE CITY, THEY ACTUALLY CALLED
HIS EXPERIENCE -- NEWLY
EXPERIENCED COMPANIES UP TO
PERFORM OR WORK THE WAY WE NEED
TO. I THINK IT'S A WIN/WIN FOR
EVERYONE.
>> SURE, THANK YOU. THANK YOU
FOR THE PRESENTATION TODAY,
SHARING YOUR INSIGHTS. PLEASE DO
FOLLOW UP OFF-LINE WITH THE
NUMBERS YOU TALKED ABOUT. THIS
IS VITALLY IMPORTANT WORK. THIS
WORK ENABLES THE WORK OF ALL
CITY GOVERNMENT AND ALTHOUGH
SIGHT UNSEEN TO SOME, THIS IS
MORE THAN JUST BACKEND
PAPERWORK, LOGISTICS AND
PROCUREMENT. AGAIN, THIS WORK
UNDERPINS ALL THE WORK AND
IMPACTS THE PUBLIC'S
PERCEPTION, ULTIMATELY, WHETHER
WE ARE DELIVERING OR NOT AS A
CITY, WHETHER WE ARE RESPONSIVE
TO COMMUNITY DEMANDS OR NOT. SO
REALLY APPRECIATE YOU BOTH AND
YOUR RESPECTIVE TEAMS, AND THANK
YOU, CHAIR.
>> THANK YOU COUNCILMEMBER SAKA.
YOUR QUESTIONS ILLUSTRATED WHAT
I SHARE SO OFTEN, WHICH IS THAT
I BELIEVE FAS IS THE BACK OF OUR
CITY. YOU PROVIDE US -- WHETHER
IT'S CONTRACTING, I MEAN JUST
BUILDINGS THAT WE USE, THE
FLEETS THAT WE YOU, IF A CITY
DEPARTMENT WANTS TO GET A JOB
DONE, FAS IS THERE. AND BECAUSE
YOU'RE THE BACKBONE, YOU DON'T
OFTENTIMES SEE THE LIGHT OF
ACCOMPLISHMENT, RIGHT? SO I JUST
REALLY APPRECIATE YOUR
QUESTIONS, COUNCIL MEMBER SAKA,
BECAUSE YOU ILLUSTRATED WHAT
PETER AND WHAT PRESLEY AND YOUR
TEAMS ARE DOING TO GET THE
EVERYDAY WORK OF THE CITY OF
SEATTLE DONE FOR SEATTLEITES. SO
JUST REALLY APPRECIATE YOU.
COLLEAGUES, IF THERE ARE NO
FURTHER QUESTIONS, WE WILL HAVE
THE SMALL WORKS ROSTER BACK FOR
A FINAL VOTE ON SEPTEMBER 3rd. I
THINK SEPTEMBER 3rd WILL RETURN
TO BEING A PACKED AGENDA, SO WE
MAY NOT HAVE THEM HERE FOR A
PRESENTATION BUT WE'LL TALK
THAT THROUGH AS WE GET GOING,
JUST BECAUSE OF HOW
STRAIGHTFORWARD AND HOW ROBUST
OF A CONVERSATION WE JUST HAD.
ANYTHING TO LEAVE US WITH,
PRESLEY OR PETER?
>> I REALLY JUST APPRECIATE YOU
ALL HAVING US TO COME IN AND
KIND OF SPEAK TO THIS. WE DO
FEEL IT'S A VERY IMPORTANT
THING. WE ARE HAPPY TO REENGAGE
WITH THIS FROM 2012 TO NOW, TO
REENGAGE. WE JUST THINK THE
OPPORTUNITIES, THE CHANGES THAT
WERE MADE IN LAW JUST KIND IT IS
PERFECT TIMING FOR THIS TO
HAPPEN AGAIN.
>> THANK YOU. PLEASE DO LET
EVERYONE ON YOUR TEAMS KNOW HOW
MUCH WE APPRECIATE THEM AND IF
THEY DON'T BELIEVE YOU THAT YOU
SAID IT COULD COME AND CHECK THE
TAPE.
>> THAT WOULD HELP.
>> THANK YOU SO MUCH. WITH THAT
ARE GOING TO MOVE ON TO THE NEXT
ITEM OF BUSINESS, ITEM 5, OUR
FINAL ITEM OF BUSINESS, AND IF
FOLKS WANT TO JOIN THE TABLE,
AND THAT'S EVERYONE FROM
RICHARD, ALEX, JOSEPH, MR. EDER,
DIRECTOR DURESS, SEAN, BEN AND
TOM , AND WILL LOOK FOR PLEASE
READ THE SHORT TITLE INTO THE
RECORD?
>> ITEM 5, AUGUST 2025 ECONOMIC
AND REVENUE FORECAST. THIS ITEM
IS FOR BRIEFING AND DISCUSSION.
PRESENTERS INCLUDE JAN DURAS AND
-- EXCUSE ME, SEAN THOMPSON OF
THE OFFICE OF ECONOMIC FORECAST,
RICHARD BESTIC, ALEXANDER ZANI
AND RICHARD RUSSELL OF THE CITY
BUDGET OFFICE AND BEN NOBLE AND
TOM MIKESELL OF OUR COUNCILS
CENTRAL STAFF.
>> I THINK I MISQUOTED THE FACT
THAT DIRECTOR DAN EDER WILL BE
HERE. I'LL SET THE STAGE AS
FOLKS ARE GETTING SETTLED, WHICH
IS, AS BUDGET CHAIR I MADE A
CHANGE, WHAT I CONSIDER TO BE
ABLE TO REFORM PROCESS, THAT
PROCESS REFORM WHICH IS TO BRING
THIS PRESENTATION TO THE FINANCE
COMMITTEE OR TO THE SELECT
BUDGET COMMITTEE. IN THE PAST
THESE REPORTS HAVE ALREADY BEEN
PROVIDED EITHER AT THE FORECAST
COUNCIL BEFORE THAT, WHEN THIS
WORK WAS JUST IN CBO. I DON'T
BELIEVE THERE WAS ACTUALLY A
FORMAL PRESENTATION OF ANY KIND,
SO IN THAT LIGHT, THIS IS TO
INCREASE TRANSPARENCY, TO
INCREASE ACCESS TO INFORMATION
ON MONDAY, WHEN THE FORECAST
COUNCIL MET WE HAD A VERY ROBUST
CONVERSATION. I THINK WE WENT
ABOUT A HALF AN HOUR OVER TIME
SO TODAY REALLY IS ABOUT OTHER
COUNCILMEMBERS, YOUR ACCESS TO
THIS INFORMATION SO THAT YOU GOT
DEDICATED TIME TO ASK QUESTIONS.
WE HAVE A LITTLE LESS THAN AN
HOUR. DIRECTOR DURESS HAS AN
ABBREVIATED PRESENTATION WITH A
LOT OF SLIDES IN THE APPENDIX,
AS WELL AS, I BELIEVE TOM
MIKESELL MIGHT HAVE SOME
ADDITIONAL INFORMATION THAT
HE'D LIKE TO PRESENT. SO WITH
THAT I'M GOING TO -- IF
EVERYONE WANTS TO INTRODUCE
THEMSELVES, WE GOT AN
AMALGAMATION OF THE FORECAST
OFFICE, CBOS OFFICE AND COUNCILS
CENTRAL STAFF HERE TO WALK US
THROUGH THE PRESENTATION. HIGH
LEVEL AGAIN, IN APRIL WE TOOK AN
UNUSUAL STEP TO ADOPT A
PESSIMISTIC OUTLOOK, WHICH
CREATED A LOT MORE ISSUES THIS
YEAR. THE TOP LINE HERE IS THAT
WE HAVE AN IMPROVED REVENUE
FORECAST TODAY . I KNOW DIRECTOR
DURAS, ON MONDAY I WAS ASKING,
IF WE HAD ADOPTED A BASELINE
FORECAST IN APRIL, HOW MUCH
POSITIVITY WOULD WE SEE TODAY? I
DON'T KNOW IF YOU HAVE THE
ANSWER. YOU DO? AWESOME. WITH
THAT I'M GOING TO TURN IT OVER
TO DIRECTOR DURAS AND FIRST
FORECAST OFFICE COULD INTRODUCE
THEMSELVES, THEN CBO, AND THEN
CENTRAL STAFF. THINK
>> THANK YOU CHAIR STRAUSS. GOOD
MORNING COUNCILMEMBERS. MY NAME
IS JAN DURAS. ON THE INTERIM
DIRECTOR AND CHIEF ECONOMIST IN
THE OFFICE OF ECONOMIC AND
REVENUE FORECASTS. HELLO
EVERYONE, GOOD MORNING.
>> JOHN THOMSON, THE OTHER
EMPLOYEE OF THE OFFICE OF
ECONOMIC FORECAST, REGIONAL
CALMNESS, PRODDING UTILITY
TAXES, PRIMARILY WHAT I DO. CBO.
>> HI, RICHARD DESI WITH CBO.
>> GOOD MORNING, I'M AN
ECONOMIST WITH THE CITY BUDGET
OFFICE, ADMITS ANDREA ZHANG.
>> GOOD MORNING, JOSEPH RUSSELL,
ECONOMIST, CITY BUDGET OFFICE.
>> GOOD MORNING, TOM MIKESELL,
CENTRAL STAFF.
>> THANK YOU, JUST NOTING THAT
WE HAD DATED HANIS LEAVE HIS
POSITION AND RICHARD DESI IS
HERE WITH US NOW. WELCOME
RICHARD. IT'S EXCITING TO HAVE
YOU WITH US. NOT NEW TO THIS
WORK, JUST NEW TO US.
>> THANK YOU SO MUCH.
>> DIRECTOR DURAS, IF YOU WANT
TO WALK US THROUGH THE
PRESENTATION, COUNCILMAN SAKA,
COUNCILMEMBER KETTLE, I HAD A
VERY ROBUST CONVERSATION THIS
WEEK SO I'M GOING TO HOLD MY
QUESTIONS UNTIL THE VERY, VERY
END. IF YOU DO HAVE QUESTIONS
ALONG THE WAY, PLEASE -- PLEASE
FEEL FREE TO ASK, IF WE GET
ABOUT 11:05 I MIGHT TURN US TO
JUST PRESENTATION MODE ONLY
WHATEVER TO YOU, DIRECTOR DURAS.
>> SO VERY QUICKLY HERE IS THE
OUTLINE, AS I MENTIONED THIS IS
A LARGELY ABBREVIATED VERSION OF
WHAT WAS PRESENTED ON MONDAY BUT
THE BRIEF OVERVIEW GOES LIKE
THIS. WE FIRST -- I FIRST
PRESENT THE RECENT ECONOMIC
DEVELOPMENTS AND CHANGES IN THE
ECONOMIC OUTLOOK , THAT SERVES
AS A STARTING POINT TO DEVELOP
THE REGIONAL ECONOMIC FORECAST
AND REVENUE FORECAST, AND THEN
I'LL MOVE ON TO THE REVENUE
FORECAST ITSELF, WHERE OUR
OFFICE IN THE CITY'S BUDGET
OFFICE WILL PROVIDE AN OVERVIEW
OF WHAT CHANGED FOR THE GENERAL
FUND REVENUES AND WHAT CHANGED
FOR OTHER ECONOMIC GENERAL FUND
REVENUES. SO FIRST LOOKING AT
CHANGES IN THE OVERALL ECONOMIC
SITUATION, WHEN WE WERE HERE IN
APRIL IT WAS RIGHT AFTER THE
VARIANCE HAD BEEN ANNOUNCED AND
THEY HAD A SIGNIFICANT IMPACT.
THE STOCK MARKET PLUNGED. THERE
WAS LARGE INCREASE IN
VOLATILITY. LUCKILY SINCE THEN,
THE SITUATION HAS COMBED DOWN A
LITTLE BIT. MARKETS HAVE
REGAINED THE LOSSES. THE
ECONOMIC UNCERTAINTY IS STILL
HIGH. THE CHART HERE SHOWS --
THE CHART HERE SHOWS THE CHANGE
IN THE S&P GLOBAL INDEX, IT
CURRENTLY STANDS AROUND 6300, SO
ESSENTIALLY REALLY RECOVERED ALL
THE LOSSES SINCE APRIL. THE
PROBABILITY OF A RECESSION, AS
ASSESSED BY THE WALL STREET
JOURNAL ECONOMICS IS CURRENTLY
33% IN THE JULY SURVEY, DOWN
FROM 45% IN APRIL, AGAIN OVERALL
IMPROVEMENT IN THE OUTLOOK. THAT
SAID, THE BALANCE OF RISK HAS
CHANGED SLIGHTLY IN THE LAST
COUPLE OF DAYS. LAST WEEK, FIRST
NEW TARIFFS WERE ANNOUNCED ON
THE LAST DAY OF JULY AND THEN ON
FRIDAY A WEAK EMPLOYMENT REPORT
WAS RELEASED, WHICH RAISED SOME
CONCERNS. THE GOOD THING HERE IS
THAT THE LAYOFFS HAVE NOT PICKED
UP YET AND THE ECONOMY STILL
BELIEVES THAT THE U.S. ECONOMY
CAN AVOID A RECESSION ALTHOUGH
THOSE RISKS OF RECESSION ARE
HIGHER THAN THE EARLY JULY
SURVEY WOULD SUGGEST OR THE
FORECAST THAT WAS RELEASED IN
EARLY JULY WOULD SUGGEST. SO
WHERE DOES THAT INCREASED
OPTIMISM OR THE SURVEY
CONCERNING AND LESS OF A
PESSIMISTIC OUT COME FROM? FIRST
BACK IN APRIL THE LARGE CONCERN
WAS THAT TARIFFS WOULD QUICKLY
LEAD TO A SPIKE IN INFLATION AND
WILL SIGNIFICANTLY SLOW DOWN,
THE ECONOMIC ACTIVITY WILL
QUICKLY HAVE A NEGATIVE IMPACT
ON EMPLOYMENT. THAT TURNED OUT
NOT TO BE THE CASE. THE CHART
HERE SHOWS FIRST WHAT THE
OUTLOOK WAS FOR INFLATION IN THE
MARCH PESSIMISTIC SCENARIO. SO
AS A REMINDER, THAT WAS THE
SCENARIO WE RECOMMENDED TO YOU
AS A STARTING POINT FOR THE
APRIL REVENUE FORECAST. WE WENT
WITH THE PESSIMISTIC SCENARIO
BECAUSE THE MARCH FORECAST WAS
PREPARED BEFORE THE APRIL
TARIFFS ANNOUNCEMENT AND WE HAD
A STRONG BELIEF THAT WHEN THE
S&P GLOBAL UPDATES, THERE
FORECAST IN APRIL, THEY MOVED
THE FORECAST FOR INFLATION TO
REFLECT THE IMPACT OF TARIFFS
AND THAT'S EXACTLY WHAT
HAPPENED, ESSENTIALLY THAT LINE,
THE FAMED RED LINE THAT SHOWS
THE APRIL BASELINE SCENARIO
SHOWS THAT AFTER THE IMPACT OF
TARIFFS HAVE BEEN INCORPORATED
IN A ROW BY S&P GLOBAL AND THE
U.S. FORECAST, THEY BELIEVE THAT
THE INCREASE IN INFLATION WILL
BE EVEN LARGER THAN WHAT THEY
BELIEVED IN THE MARCH
PESSIMISTIC SCENARIO. AGAIN
BECAUSE THE TARIFFS ANNOUNCEMENT
WAS SIGNIFICANTLY LARGER THAN
WHAT ECONOMISTS BELIEVE HAPPENED
WHEN THEY ARE PREPARING THE
FORECAST IN EARLY MARCH. SO HOW
DID THAT PLAY OUT? THE DARKER
RED LINE SHOWS THE CURRENT
BASELINE SCENARIO, THE JULY
BASELINE SCENARIO, THE FORECAST
IN THAT SCENARIO WAS PREPARED
SOMETIME IN EARLY JULY. AS YOU
CAN SEE, THE OVERALL INFLATION
LEVELS ARE SIGNIFICANTLY LOWER
THROUGHOUT 2025. AGAIN, IN 2025,
IN THE FIRST TWO QUARTERS
INFLATION HAS SURPRISED ON THE
POSITIVE SIDE, HAD BEEN ABOUT
.8% LOWER IN THE SECOND ORDER SO
TARIFFS HAD NOT YET HAD THE
NEGATIVE EFFECTS THAT WERE
ANTICIPATED AND THE ECONOMISTS
WERE WORRIED ABOUT. THERE IS
LARGE DEBATE WHAT'S BEHIND THIS
WEEK OR BETTER THAN EXPECTED
INFLATION DATA. THE ECONOMY
STILL BELIEVE THAT EVENTUALLY
TARIFFS WILL LEAD TO HIGHER
INFLATION AND THAT CAN BE SEEN
BY THE ACCELERATION IN THE
REDLINE, WHERE WE ARE CURRENTLY
IN THE SECOND QUARTER OF 2025
POINT THE POINT IS SIGNIFICANTLY
LOWER THAN WHERE WE ARE
EXPECTED, WHERE THE ECONOMISTS
EXPECT IT WILL BE BY SUMMER NEXT
YEAR. MOREOVER, IF THE TARIFFS
-- IF THERE ARE STILL LARGE
UNCERTAINTY AROUND THEM IT
DOESN'T LOOK LIKE THE FINAL
WORD HAS BEEN SAID ON THAT, IN
THAT REGARD. SO IF EVEN LARGER
TARIFFS ARE IMPOSED, INFLATION
CAN GO EVEN HIGHER THAN IN THAT
BASELINE SCENARIO, THE DARK
BLACK LINE SHOWS THE JULY
PESSIMISTIC SCENARIO WHERE
INFLATION WOULD PEAK IN SUMMER
2026 AT LEVELS ABOVE 3.5, CLOSER
TO 4% BEFORE COMING DOWN. THIS
MAKES THE JOB OF THE FED REALLY
HARD. THEY HAVE DECIDED NOT TO
CHANGE THEIR INTEREST RATE IN
THE MEETING LAST WEEK. AFTER
THAT MEETING, AGAIN THE
EMPLOYMENT DATA THAT WAS
RELEASED WAS SIGNIFICANTLY
WEAKER THAN EXPECTED AND SO THE
FINANCIAL MARKETS NOW PUT QUITE
HIGH PROBABILITY THAT THE FED
WILL ACTUALLY LOWER THE INTEREST
RATE IN SEPTEMBER MEETINGS SO
THERE IS, BASED ON THE TRENDS IN
THE FINANCIAL MARKET, NOW ABOUT
A 90% CHANCE OF A WORKER PERCENT
CUT IN SEPTEMBER AND THAT CUT IS
EXPECTED TO BE FOLLOWED BY AT
LEAST ONE ADDITIONAL CUT IN
OCTOBER OR DECEMBER, POTENTIALLY
ACTUALLY TWO CUTS DEPENDING ON
HOW THINGS PLAY OUT. THERE WILL
BE ADDITIONAL INFLATION DATA
RELEASED. THERE WILL BE
ADDITIONAL EMPLOYMENT DATA
RELEASED AND THE FED WILL
CERTAINLY ACT BASED ON THAT SO
SHOULD BE IMPLEMENT DATA COMING
VERY WEAK IN EARLY SEPTEMBER, BY
THAT MID SEPTEMBER MEETING THERE
WILL BE A REALLY STRONG PUSH FOR
FED TO ACT AND LOWER INTEREST
RATES. NOW TURNING TO THE
OUTLOOK FOR THE REGIONAL
EMPLOYMENT, WOULD -- WHAT WE
HAVE DONE IN THIS CURRENT MONAST
LET ME I GUESS FIRST STEP BACK.
LET'S LOOK AT THE MARCH
PESSIMISTIC SCENARIO BEFORE I
TALK ABOUT CURRENT FORECAST. HOW
ARE LYING THAT'S SHOWN HERE IN
THE CHART AGAIN SHOWS THE
PESSIMISTIC OUTLOOK, PESSIMISTIC
SCENARIO FROM MARCH. I HAVE TO
SAY HERE THAT THE PESSIMISTIC
SCENARIO DID NOT EXPECT A
RECESSION, AN ACTUAL TRUE
RECESSION TO OCCUR. THE
EMPLOYMENT, THE PROJECTION AND
THE PREDICTION FOR EMPLOYMENT IN
U.S. AND BY EXTENSION IN THE
REGIONAL ECONOMY, THE FORECAST
FOR EMPLOYMENT WAS THAT
EMPLOYMENT WILL DECLINE SLIGHTLY
BUT GDP AND OVERALL ECONOMIC
ACTIVITY MORE BROADLY WAS NOT
EXPECTED TO DECLINE AND SO AGAIN
THAT WAS NOT REALLY A
RECESSIONARY SCENARIO. IT WAS
JUST LESS PESSIMISTIC, SLOWER
GROWTH SORT OF A SCENARIO. GIVEN
THE CHANGE IN THE OUTLOOK, GIVEN
THAT LIKE THE MORE -- THE LESS
PESSIMISTIC OUTLOOK AND ROSIER,
MAYBE A LITTLE BIT ROSIER
OUTLOOK IN THE CURRENT BASELINE
SCENARIO, WE DO NOT EXPECT THAT
DECLINE IN EMPLOYMENT TO OCCUR
IN 2026 POINT THE REDLINE IS
BELOW THE MARCH PESSIMISTIC
SCENARIO FOR 1st HALF OF 2025.
THAT LARGELY REFLECTS THE
REVISION OF HISTORICAL DATA. SO
WHAT HAPPENS IS THAT THE
EMPLOYMENT SECURITY DEPARTMENT,
WASHINGTON STATE EMPLOYMENT
SECURITY DEPARTMENT IS REGULARLY
REVISES THEIR EMPLOYMENT
ESTIMATES, OCCASIONALLY THOSE
REVISIONS ARE TO THE DOWNSIDE
AND SO EVEN LOOKING AT 2024,
QUARTER FOUR DATA, HERE WE HAVE
MUCH SLOWER GROWTH THAN WHAT WAS
INCORPORATED IN THE MARCH
FORECAST. THAT'S SLIGHTLY LOWER
STARTING POINT BUT AS THE FED IS
EXPECTED TO RAMP UP THE MONITOR
EASING, THE REGIONAL EMPLOYMENT
GROWTH IS EXPECTED TO RECOVER.
NOT BY ANY MEANS STRONG, IT WILL
REMAIN BELOW 1% UNTIL 2028 BUT
AGAIN, NO DECLINES ARE EXPECTED
IN THE BASELINE SCENARIO. SO
TURNING THEN TO THE PESSIMISTIC
SCENARIO, THIS ONE IS NOW A
TRULY RECESSIONARY SCENARIO.
THAT'S HOW THE U.S. FORECAST
HAS BEEN UPDATED BY MANY
FORECASTERS, ESSENTIALLY GLOBAL
HAS CHANGED THEIR SCENARIO,
WHICH NOW INCORPORATES A
RECESSION AND SO LARGER
EMPLOYMENT LOSSES WILL TAKE
PLACE IN THAT CASE, IN THE
REGIONAL ECONOMY. THE EMPLOYMENT
WILL CUMULATIVELY FALL BY 2.9%
BY SUMMER OF 2027. JOB LOSSES
WILL THEN BE RECOVERED BY SUMMER
2029 SO OVERALL THIS DOWNTURN
AND THE RECOVERY WILL TAKE ABOUT
FOUR YEARS, WHICH MAKES IT
SIMILAR TO 2001 RECESSION IN
TERMS OF THE DURATION AND ALSO
IN TERMS OF GENERAL MAGNITUDE OF
THIS DOWNTURN. SO NOT A DEEP
RECESSION LIKE 2008 OR EVEN
DEEPER BUT SHORTER THAN THE 2020
RECESSION BUT SOMETHING SIMILAR
TO 2001. OKAY. NOW TURNING TO --
BEFORE RETURNING TO THE REVENUE
FORECAST, WE MADE
RECOMMENDATIONS IN A MONDAY
MEETING TO ADOPT THE BASELINE
SCENARIO, TO SERVE AS THE
OFFICIAL 2025, AUGUST 2025
FORECAST. WE DID KNOW THAT THERE
IS THAT HIGH RISK OF THE FUTURE
DOWNWARDS REVISION SO ANY
FUNDING DECISION SHOULD TAKE
THAT INTO ACCOUNT AND SHOULD
PLAN FOR SUCH AN EVENTUALITY.
ACKNOWLEDGING THIS RAISES THE
FORECAST, COUNCIL THEN ADOPTED
THE SCENARIO , THE BASELINE
SCENARIO THAT THE FORECAST
OFFICE HAS RECOMMENDED. THERE IS
A LONGER VERSION OF ALL THE
UNDERLYING CONTEXT AND THE
REASONING FOR THAT
RECOMMENDATION. THIS IS AGAIN
ABBREVIATED VERSION WHICH
ESSENTIALLY SUMMARIZES WHAT I
JUST WENT THROUGH. THE ECONOMIC
OUTLOOK HAS IMPROVED SINCE
APRIL. INFLATION REMAINS LOWER
THAN EXPECTED. EMPLOYMENT IS
WEAK. EMPLOYMENT GROWTH IS WEAK
BUT IT'S ONGOING. THERE HASN'T
BEEN ANY LAYOFFS ANNOUNCED OR
ANTICIPATED AND SO WHILE THE
BALANCE OF SHIFTED TO THE
ECONOMIC CENTER IN THE RECENT
DAYS, THE FED IS LIKELY TO ACT
ON THAT WITH WEAK EMPLOYMENT
GROWTH, WE CAN EXPECT RATE CUTS
IN FALL 2025, WHICH WILL
STIMULATE THE ECONOMY AND SO THE
MORE LIKELY OUTCOME BASED ON
WHAT THE FINANCIAL MARKETS
SUGGEST AND BASED ON WHAT THE
ECONOMISTS IN GENERAL THINK WILL
HAPPEN IS THAT WE ARE GOING TO
REALLY BALANCE A VERY TIGHT ROPE
BUT HOPEFULLY NOT DIP INTO A
RECESSION. SO NOW IN ADDITION TO
ALL THE CHANGES IN THE ECONOMIC
OUTLOOK, THE CURRENT FORECAST,
THE AUGUST FORECAST INCORPORATES
SOME OTHER NEWS, MOST NOTABLY
THE SENATE BILL 5814, WHICH HAS
AN EFFECT ON BOTH THE SALES TAX
AND THE BUSINESS AND OCCUPATION
TAX. THE FORECAST ALSO
INCORPORATES ALL THE DATA WE
RECEIVED FROM THE OFFICE OF CITY
FINANCE REGARDING AUDITS,
ASSESSMENT, LATE PAYMENTS AND SO
ON SO FOR PAYROLL EXPENSE TAX,
THE BIG FACTOR BEHIND THE
PRESENT CHANGE IS THE LATE
PAYMENTS WE HAVE RECEIVED SO FAR
IN 2025 AND WE STILL EXPECT TO
RECEIVE BASED ON THAT
INFORMATION THAT WAS SHARED WITH
OUR FORECAST OFFICE. SO TURNING
OVER ONTO THE -- TO THE
FORECAST, REVENUE FORECAST
ITSELF, THE TABLE HERE ON THE
VERY BOTTOM SHOWS THAT THE
REVISED FORECAST ADDS ABOUT
$29.2 MILLION TO THE GENERAL
FUND IN 2025 AND ABOUT $33.6
MILLION IN 2026 FOR A TOTAL
CHANGE OF 62.8 ALIEN DOLLARS.
THAT'S A TOTAL WITHOUT
TRANSFERS, THERE IS A LARGE
CHANGE IN THE FUND BALANCE
TRANSFERS THAT THE CITY BUDGET
OFFICE CAN COMMENT ON LEADER.
BEFORE THAT I WILL QUICKLY GO
OVER THOSE REVENUES HIGHLIGHTED
BLUE HERE. THOSE ARE THE
REVENUES OF THE FORECAST OFFICE
IS RESPONSIBLE FOR AND SO SALES
TAX AND BUSINESS AND OCCUPATION
TAX, AS I MENTIONED, THERE'S TWO
REASONS FOR THE OVERALL BETTER
OUTLOOK IMPROVEMENT IN ECONOMIC
CONDITIONS AND THEN ALL THE
OTHER FACTORS THAT WERE
INCORPORATED, THE 5814 SENATE
BILL, THE INFORMATION FROM
OFFICE OF CITY FINANCE. ALL THAT
HAS LED TO ADDITIONAL $20
MILLION OVER TWO YEARS IN SALES
TAX, ABOUT THE SAME AMOUNT FOR
BUSINESS AND OCCUPATION TAX.
WHEN IT COMES TO PRIVATE
UTILITIES, SEAN CAN PROVIDE MORE
CONTEXT FOR THAT.
>> YES OF COURSE. FOR PRIVATE
UTILITY TAXES IT'S PRIMARILY
COMPOSED OF TWO REVENUE STREAMS,
SOME THAT ARE AFFECTED BY
WEATHER PATTERNS LIKE STEAM AND
NATURAL GAS. FOR THOSE REVENUE
STREAMS THERE FORECAST, THE
REVENUES THIS YEAR ACTUALLY SAW
A CLOSER START TO THE YEAR,
THEREFORE ACTUALLY HAD HIGH
REVENUES FOR THE BEGINNING OF
THE YEAR. THIS RAISES THE BASE
FOR THE FOLLOWING YEARS BEYOND
2025-2026. OUTSIDE OF THAT,
PRIVATE UTILITY TAXES FOR CABLE
AND TELEPHONE, WHICH HAS BEEN
DECLINING A LOT SINCE 2020 AS
PEOPLE MOVE AWAY FROM THE
HIDEAWAYS OF ENTERTAINMENT AND
COMMUNICATION. WE ARE STARTING
TO SEE LESS OF A DRASTIC DECLINE
IN THE MOST RECENT DATA, KIND OF
IMPROVING THE OUT YEARS BUT
HOPEFULLY WE'LL GET TO A STABLE
BASE OF ECONOMIC TAXPAYERS
ESSENTIALLY MOST OF THOSE
REVENUE STREAMS BUT OVERALL
PRIVATE UTILITY TAXES CONTINUE
TO BE VERY ACCURATE WITH THE
FORECAST AND WE HAVE SLIGHT
IMPROVEMENTS WERE 2025, 2026
TOTALING TWO ABOUT ONE POINT $8
MILLION AND CBO, WOULD YOU LIKE
TO CONCLUDE THINGS?
>> FAX, SEAN. I'LL TAKE
PROPERTY TAX. SO PROPERTY TAX
UNDER STATE LAW IS ALLOWED TO
GROW AT 1% AS WELL AS ADDED NEW
CONSTRUCTION VALUE. SO IN 2026
THERE'S GOING TO BE A SLIGHT
REDUCTION ANTICIPATED BECAUSE
NEW CONSTRUCTION GROWTH HAS BEEN
REVISED DOWN SINCE APRIL,
ESPECIALLY CONSIDERING HOW THE
SECTOR HAS BEEN PERFORMING IN
THE LAST YEAR OR SO. MOVING ON
TO PUBLIC UTILITY TAXES, THESE
ARE CONSIDERABLY UP FROM
APRIL'S PESSIMISTIC SCENARIO
BECAUSE ALL OF THESE TAXES
INCLUDING ELECTRIC AND WATER
HAVE BEEN PERFORMING ACCORDING
TO BASELINE EXPECTATIONS. FOR
OTHER CITY TAXES THERE IS A VERY
SLIGHT REDUCTION IN 2026, SIMPLY
OWING TO AN ERROR IN THE BASE
THAT WAS USED IN THE LEASEHOLD
EXCISE TAX FORECAST, AND I WILL
MOVE ON TO JOE TO TALK ABOUT
PARKING METERS.
>> I'M GOING TO SPEAK TO THE
NEXT TWO METERS, PARKING METERS,
SMALL DOWNWARD REVISION IN
PARKING METERS RELATING TO
MOSTLY THE NUMBER OF PAYMENTS
COMING IN, IN THE SPRING, WAS
UNDER WHAT WE HAD PROJECTED IN
APRIL. WE ALSO SAW A JULY RATE
CHANGE, ASKED.IMPLEMENTED NEW
METER CHANGES AND THOSE HAD
ACTUALLY A SLIGHT DOWNWARD
IMPACT ON THE FORECAST, WHICH WE
HAD EXPECT IT A SORT OF NEUTRAL
EFFECT THERE. IN THE COURT FINDS
LINE HERE THERE ARE A LOT OF
THINGS PACKED INTO THAT BUT
MAINLY THIS CHANGE IS DRIVEN BY
BOTH RED LIGHT CAMERA AND
PARKING TICKETS COMING IN LOWER
THAN EXPECTED. PARKING TICKETS
HAVE ALSO SEEN SOME IMPACT .
THOSE FINES WENT UP
SUBSTANTIALLY AT THE BEGINNING
OF THIS YEAR AND WE ARE STILL
MONITORING EXACTLY WHAT IMPACT
THAT HAS ON TIME PAYMENTS, SO
THOSE ON-TIME PAYMENTS WERE A
LITTLE LOWER IN THE FIRST TWO
MONTHS OF THIS YEAR THAN WE HAD
EXPECTED, BUT WE WILL CONTINUE
TO MONITOR THAT TREND.
>> RATE. SO I'LL TALK ABOUT THE
NEXT TWO. SUBLICENSE, PERMITS,
INTEREST INCOME AND OTHER. SO WE
SEE A TOTAL IMPACT THERE, SORRY,
REVISION UPWARDS OF 3.8 MILLION.
MUCH OF THAT IS IMPACTED BY THE
FACT THAT YOU KNOW INTEREST
RATES HAVE REMAINED HIGH AND
INTEREST RATES REMAIN HIGH AND
WE EXPECT HOPEFULLY TWO RATE
CUTS FROM THE FED OCCUR, IF YOU
WILL, IN THEIR NEXT THREE
MEETINGS, AS DIRECTOR DREW HAS
POINTED TO. BUT YOU DO SEE SORT
OF A SLIGHT REVISION DOWNWARDS,
IF YOU WILL, IN 2026, WHICH IS
IN SOME WAYS A REFLECTION AND
ACKNOWLEDGMENT OF THE FACT THAT
WE HOPE THAT RATES WILL COME
DOWN IN 26 RELATIVE TO NOW. THE
NEXT ITEM IS WITH REGARDS TO OUR
REVENUES FROM OTHER PUBLIC
ENTITIES. MUCH OF THAT IS FROM
STATE SHARED REVENUES FOR THINGS
LIKE LIQUOR BOARD PROFITS AND SO
FORTH. MANY OF THOSE ARE VERY
FORMULAIC AND BASED ON THINGS
LIKE POPULATION GROWTH AS WELL
AS CERTAIN SORT OF FORMULAS THAT
THE STATE TREASURY KIND OF KEEPS
TRACK OF AND USES TO DISTRIBUTE
THESE FUNDS TO CITIES AND
COUNTIES. SO WITH THOSE WE ARE
EXPECTING MUCH OF THAT ON A
COMBINED BASIS OF ABOUT 1.6 OVER
THE TWO YEAR PERIOD AND MUCH OF
THAT TAKES INTO ACCOUNT SORT OF
THE RECOGNIZED, IF YOU WILL,
POPULATION GROWTH AND SO FORTH
THAT IS HAPPENING IN THE REGION.
>> MOVING ON TO SERVICE CHARGES
AND ADVERTISEMENTS, THE UPPER
REGION IN 2025 IS DUE TO SIMPLY
AN EXPECTATION OF MORE STATE
REIMBURSEMENTS, PARTICULARLY FOR
THE FIRE DEPARTMENT AND JUST A
SLIGHT REVISION DOWN IN THOSE
EXPECTATIONS IN 26. FOR GRANTS,
THE 1 MILLION REDUCTION IN 25 IS
JUST OWING TO A CLEANUP OF
CARRYFORWARD BUDGET THAT MIGHT
HAVE CARRIED FORWARD IN ERROR,
SO THAT IS MOSTLY A COUNTY
THING. AND THEN LAST BUT NOT
LEAST, FUND BALANCE TRANSFERS.
THIS INCLUDES THE STAND-ALONE
LEGISLATION THAT IS MOVING
THROUGH COUNCIL RIGHT NOW, THAT
REDUCES THE TRANSFER FROM THE
JUMPSTART APPAREL EXPENSE TAX
FUND TO THE GENERAL FUND IS $34
MILLION.
>> THANK YOU. I'M JUST GOING TO
JUMP IN AND GIVE JOSEPH THE
SAME, OR I GUESS STATEMENT TO
COLLEAGUES GIVING JOSEPH GRACE
BECAUSE WE ARE THE ONES THAT
CHANGED THE PARKING RATES. WE
CHANGED THE SPEED CAMERAS,
B-SCHOOL CAMERAS, AND EVERYTHING
ELSE. WE EFFECTIVELY CHANGED THE
FOUNDATIONAL ELEMENTS OF
JOSEPH'S ABILITY TO FORECAST
THESE THINGS SO WE ARE ALL
GIVING JOSEPH SOME GRACE UNTIL
THAT STABILIZES A LITTLE BIT
MORE . SO THANK YOU.
>> THANKS, I APPRECIATE THAT.
>> ABSOLUTELY. BACK TO YOU,
DIRECTOR DURAS. I WOULD SAY
MAYBE IF WE COULD TAKE A LITTLE
BIT FASTER, BECAUSE I'M HOPING
SOME OF THE CALLINGS WILL HAVE
SOME QUESTIONS.
>> OKAY. ALL RIGHT. SO I WILL
JUST QUIT AND GO OVER A COUPLE
OF THINGS TO POINT OUT HERE
REGARDING THE FORECAST RATES,
MAINLY TO SALES TAX AND BUSINESS
AND OCCUPATION TAXES. THEY ARE
THE MAIN REVENUES DRIVEN BY THE
ECONOMY AND A COUPLE OF
ADDITIONAL THINGS THAT ARE GOING
ON. SO FIRST OF ALL, AND AGAIN,
MARTY PRESENTED AND DISCUSSED IN
THE MONDAY MEETING, THERE IS A
SIGNIFICANT ONGOING DOWNTURN IN
THE CONSTRUCTION SECTOR THAT
WEIGHS DOWN NOTABLY ON SALES TAX
AND TO SOME EXTENT ALSO ON B AND
O TAX REVENUE COLLECTION. DEMAND
FOR OFFICE SPACE REMAINS LOW. IS
NOT REALLY EXPECTED TO RECOVER
THAT MUCH AND OFFICE VACANCY
RATES ARE EXPECTED TO CONTINUE
TO BE REALLY HIGH BASED ON THE
CURRENT COSTAR FORECAST. FOR
LEISURE AND HOSPITALITY SECTOR,
IT'S IMPORTANT FOR SALES TAX
REVENUES AND IN PARTICULAR
LOOKING AT THE CURRENT YEAR, THE
TOURISM ECONOMICS COMPANY
PREDICTS THE 27% DECLINE IN
NUMBER OF INTERNATIONAL
OVERNIGHT VISITORS COMING TO
SEATTLE. THAT'S NOT JUST A
PROBLEM FOR SEATTLE BUT A
PROBLEM FOR U.S. AS A WHOLE AS
PAYROLLS ARE MORE CONCERNED
ABOUT THE SITUATION AT THE
BORDER, THE RELATIONSHIP HAS
FRAYED AND THESE ARE DIRECT
IMPLICATION FOR SEATTLE SINCE
THERE'S A LARGE NUMBER OF THESE
VISITORS. THERE IS A BIT OF A
BRIGHTER SIDE FOR 2026. THERE IS
AN ADDITIONAL BOOST IN THIS
FORECAST COMING FROM 2026 WORLD
CUP. THAT'S THE FULL RECOVERY
TWO VISITOR NUMBERS WE HAVE SEEN
IN 2024, ONLY ANTICIPATED BY THE
YEAR 2028 AND THIS PARTICULAR
FORECAST FROM TOURISM ECONOMICS.
THEN THERE IS ADDITIONAL
FORECAST RISKS COMING FROM
POLICY CHANGES. THE WASHINGTON
STATE SENATE BILL 5814, WHICH I
MENTIONED AFFECTS BOTH B AND O
AND SALES TAX. THERE IS A LARGE
AMOUNT UNSER D REGARDING THE
ACTUAL EFFECTS SINCE THERE IS A
VERY LIMITED DATA THAT WE COULD
USE TO COME UP WITH THIS PRECISE
REVENUE ESTIMATE, AND SO WE HAVE
TO JUST WAIT AND SEE WHAT THE
ACTUAL OUTCOME WILL BE,
INCORPORATE THAT INTO OUR
REVISED FORECAST AS WE GO ALONG.
THEN THERE IS AN ADDITIONAL
UNCERTAINTY FOR B AND O REVENUES
COMING FROM THE PROPOSED RATE
STRUCTURE. IT WOULD NARROW THE
TAX BASE, IT WOULD INCREASE THE
TAX RATE SIGNIFICANTLY AND SO IN
GENERAL AGAIN, DUE TO THE LACK
OF DATA THAT WOULD PROVIDE
EVIDENCE THAT WOULD INFORM THE
FORECAST, WE EXPECT POTENTIALLY
LARGER VARIANCE BETWEEN THE
ACTUALS AND OUR FORECAST FOR
BUSINESS AND OCCUPATION TAX. A
BIG PART OF THAT IS IT IS REALLY
DIFFICULT TO PREDICT EXACTLY HOW
THE LARGE BUSINESSES WILL REACT.
THERE HAVE BEEN A NUMBER OF
POLICY CHANGES OVER THE LAST
COUPLE OF YEARS. WE HAVE ALREADY
SEEN SEVERAL LARGE EMPLOYERS
MOVE LITERALLY THOUSANDS OF JOBS
OUT OF SEATTLE AND THOUSANDS HAS
BEEN REPORTED FOR AMAZON ABOUT
2000 FOR META, ABOUT 1000
PROBABLY FOR [ INAUDIBLE ],
WHICH MOVED TO BELLEVUE. ON THE
SALESFORCE, TABLEAU COMPANY HAS
DECIDED NOT TO RENEW THEIR
LEASES AND SO GIVEN THAT THESE
ARE TO A LARGE EXTENT TECH JOBS
WHICH ARE WELL COMPENSATED, THE
IMPACT ANTICIPATING LOCAL
ECONOMY IS SUBSTANTIAL, EVEN
WITH THE VERY CONSERVATIVE
ESTIMATES, WE ARE LOOKING AT
$2.5 BILLION LESS IN ANNUAL
RANGES AND AS YOU COULD EXPECT,
THAT HAS SIGNIFICANT
CONSEQUENCES FOR THE REVENUE
COLLECTION, FOR THE LOCAL
ECONOMY, 40 ACTIVITY THAT WOULD
BE GENERATED IF THESE WAGES WERE
AT LEAST TO SOME EXTENT SPENT ON
THE LOCAL ECONOMY PURPOSE OF THE
CONCERN HERE IS THAT THOSE
POLICY CHANGES OVER TIME,
BECAUSE THEY PLAY OUT OVER TIME,
COULD LEAD TO POTENTIALLY LOWER
GROWTH IN THE LOCAL ECONOMY,
POTENTIALLY LOWER GROWTH OF THE
BUSINESS AND OCCUPATION TAX,
SALES TAX REVENUES. AGAIN, VERY
LITTLE INFORMATION THAT WE CAN
USE TO PREDICT WHAT EXACTLY WILL
HAPPEN, SO WE ARE MONITORING THE
DATA THAT WE HAVE AND CONTINUING
TO IMPROVE OUR FORECAST AS WE GO
ALONG. SO WITH THAT SAID, MOVING
ONTO ONE OF THOSE AFFECTED
REVENUES, PAYROLL EXPENSE TAX
HAS BEEN REVISED UP FOR 2025 AND
2026 COMBINED BY ABOUT 31.7
MILLION WITH LARGER INCREASE FOR
2025. AS I MENTIONED, A PART OF
THAT ARE THINGS WHICH ARE NOT
REALLY RELATED TO ME 25 OR 26
OBLIGATIONS FOR PAYROLL EXPENSE
TAXES IN PARTICULAR. WE DID
INCORPORATE LATE PAYMENTS THAT
WE HAVE RECEIVED SO FAR TODAY
AND THE INFORMATION ABOUT
ADDITIONAL PAYMENTS THAT ARE
COMING IN. TOGETHER IT'S CLOSE
TO 12 MILLION ADDITIONAL
REVENUES FOR 2025, SO A
SUBSTANTIAL SHARE OF THAT UP
REVISION. FOR REIT, THERE HAVE
BEEN A COUPLE OF LARGE SALES
THAT HAVE ADDED ABOUT $3 MILLION
TO THE FORECAST COMBINED.
OVERALL THERE IS LITTLE CHANGE
OVER THE TWO YEARS AS INTEREST
RATES CONTINUE TO BE HIGH, WHICH
IS MORTGAGES ARE NOT REALLY
AFFORDABLE, THE SELLERS WERE
ABLE TO SECURE A LOWER RATE,
INVEST OR KIND OF LOCKED IN AND
WOULD BE HESITANT TO SELL THEIR
HOUSE SO THE OVERALL MARKET
CONTINUES TO BE FROZEN BECAUSE
OF THAT. ADMISSIONS TAX , YOU
CAN SEE THAT THERE IS A DIP IN
2025 BEFORE AN INCREASE, A
NOTABLE INCREASE IN 2026 OVERALL
DOWNWARD IN THE FORECAST THAT
COMES FROM THE INFORMATION ABOUT
THE VISITORS AND HOW THINGS LOOK
LIKE OVERALL SO FAR. I WILL JUMP
TO THE LAST REVENUE THAT OUR
FORECAST PREDICTS. THESE ARE THE
ONES HIGHLIGHTED IN BLUE. SALES
TAX COMING, SALES TAX REVENUE
FOR TRANSPORTATION BENEFIT
DISTRICT, THE REVISION THERE,
AGAIN FOLLOWS THE SAME -- THE
REVISIONS ARE INFORMED BY THE
SAME FACTORS AS SALES TAX
REVISIONS IN THE GENERAL FUND,
SO OUTLOOK, ALL THE IMPACTS OF
SENATE BILL 5814 WHICH WOULD
INCLUDE ADDITIONAL REVENUE,
2026, OR LATE 25 AND 2026. THE
REST OF REVENUES HERE ARE IN
PURVIEW OF THE CITY BUDGET
OFFICE SO I WILL TURN IT OVER TO
RICHARD AND HIS TEAM.
>> THANKS PURPOSE OF THE FIRST
ONE I WANT TO TALK ABOUT HIS THE
SWEETENED BEVERAGE TAX. RELATIVE
TO THE APRIL FORECAST WE HAVE AN
UPWARD REVISION AND THEN YOU
KNOW THERE'S A NOTABLE REVISION
ON IN 2026. MUCH OF THAT IS IN
THE KNOWLEDGE MEANT, IF YOU
WILL, OF POTENTIAL SECOND
QUARTER 2026 GAINS THAT WE ARE
ANTICIPATING MIGHT MATERIALIZE
BECAUSE OF THE WORLD CUP. THE
NEXT THING I WANT TO TALK ABOUT
IS VEHICLE LICENSE FEES. YOU
MIGHT RECALL THAT'S A $50 FEE
THAT'S ON -- OBVIOUSLY ON
VEHICLES. THE FORECAST HERE IS
UPWARDS AND IT'S UPWARDS
BECAUSE WE'RE TAKING INTO
ACCOUNT THE STOCK OF REGISTERED
VEHICLES THAT ARE IN THE SEATTLE
AREA AS WELL AS THE POPULATION
SORT OF GROWTH ESTIMATES OF
PEOPLE MOVING INTO THE AREA AND
SO FORTH. SO THAT'S WHAT'S
GOING ON WITH THE VEHICLE
LICENSE FEES.
>> I'LL JUMP BACK TO SHORT-TERM
RENTAL TAX, SO THIS FORECAST
DEPENDS ON THE HOTEL OUTLOOK FOR
SEATTLE CBD, WHICH IS OF COURSE
DIRECTLY TIED TO THE TOURISM
SECTOR. AND AS DIRECTOR DURAS
SAID A MOMENT AGO, TOURISM IS
EXPECTED TO WEAKEN IN THE NEXT
COUPLE OF YEARS AT LEAST AND SO
THAT'S AFFECTED HOTELS, BOTH
PRICES AND OCCUPANCY. SO YOU CAN
SEE THAT SHORT-TERM RENTAL TAX
IS NOT EXPECTED TO CHANGE MUCH
FROM APRIL. HOWEVER, THERE IS A
SLIGHT BUMP IN 2026 DUE TO SOME
FIFA ASSUMPTIONS THAT WE'VE
INCORPORATED. FOR COMMERCIAL
PARKING TAX THERE IS ACTUALLY A
SLIGHT REDUCTION IN BOTH YEARS
SO THIS IS GOING TO TWO REASONS.
ONE, THERE WAS A REVISION AT THE
STATE LEVEL OF EMPLOYMENT
NUMBERS IN ALL THE SECTORS. THIS
FORECAST HEAVILY RELIES ON
BASICALLY HOW ROBUST THE LEISURE
AND HOSPITALITY SECTOR IS,
BECAUSE THAT IS A GENERALLY GOOD
INDICATOR FOR ECONOMIC ACTIVITY,
ESPECIALLY DOWNTOWN. SO THE
EMPLOYMENT IN THAT SECTOR IS
ACTUALLY NOTICEABLY REVISED DOWN
IN THE FIRST QUARTER OF 2025,
AND THEN MOVING FORWARD THERE IS
GOING TO BE VERY LITTLE GROWTH
EXPECTED AS WELL AND SO YOU CAN
SEE , ESPECIALLY COMPARED TO THE
AUGUST FORECAST COMPARED TO
ACTUALS, IT'S CERTAINLY NOT
LOWER THAN 2024, BUT IT'S NOT
GROWING VERY MUCH.
>> I'LL SPEAK TO THE FINAL LINE
HERE, BRIEFLY. SCHOOL ZONE SPEED
CAMERAS. THE -- THERE ARE THE
MIX OF FACTORS HAPPENING HERE
BUT NAMELY THE FACT THAT THE
2025 ADOPTED BUDGET EFFECTIVELY
DOUBLED THE NUMBER OF THESE
CAMERAS THAT WILL BE IN PLACE
AND SO THE INSTALLATION OF THOSE
CAMERAS IS EXPECTED THROUGHOUT
2025. S.HAS REVISED THEIR
CALENDAR FOR THOSE INSTALLATIONS
BACKWARDS INTO THE YEAR AND SO
THIS FORECAST ESSENTIALLY
REFLECTS THAT DELAYED CALENDAR
IN THOSE INSTALLATIONS SO
THERE'S ALSO SOME IMPACT FROM
THE 30 DAY WARNING PERIOD THAT
WILL BE IN PLACE FOR THESE NEW
CAMERAS IS NOT ANTICIPATED IN
THE APRIL FORECAST BUT WAS
ENACTED VIA LEGISLATION IN MAY
OF THIS YEAR. SO THAT ALSO IS A
FACTOR AS WELL AS SOME OF THE
CITATION VOLUME FOR THE END OF
THE SCHOOL YEAR AND APRIL
THROUGH JUNE COMING IN LOWER
THAN ANTICIPATED HAS ALSO HAD A
DOWNWARD PUSH ON THESE RECORDS.
SO A MIX OF FACTORS HAPPENING
THERE.
>> AND AGAIN OUR FALL FOR
CHANGING THE UNDERLYING
FOUNDATION ON YOU. DIRECTOR
DURAS, I KNOW YOU'VE GOT TWO
MORE SLIDES ABOUT THE COMPARISON
TO PESSIMISTIC VERSUS OPTIMISTIC
IN THIS YEAR, OR IN THE CYCLE. I
HOPE TO TALK ABOUT FROM APRIL
BUT NOTICING THAT GOT ONLY ABOUT
EIGHT TEEN MINUTES LEFT, THIS
SLIDE PLUS THE NEXT SLIDE IS
ABOUT SOCIAL HOUSING, WHICH IS A
LITTLE LESS IMPACT ON OUR WORK
HERE. I'M WONDERING IF WE COULD
NOW TURN IT OVER TO CENTRAL
STAFF, UNLESS THERE ARE
QUESTIONS FROM YOU,
COUNCILMEMBER KEVIN OR
COUNCILMEMBER SAKA, ON THIS
PESSIMISTIC VERSUS BASELINE.
I'M NOT SEEING ANY SO IF WE
COULD SWITCH OVER, BECAUSE WE'LL
CONTINUE THIS CONVERSATION .
TOM, IF YOU'D LIKE TO START
YOUR PRESENTATION, AND SEAN, IF
YOU COULD JUST SKIP DOWN A
LITTLE BIT HERE, I GUESS
DIRECTOR DURAS, SWITCH PLACES.
EITHER WAY, IT WORKS.
>> BEAR WITH ME. AS I TRY TO
FIGURE OUT TECHNOLOGY.
>> FOR THOSE WATCHING RIGHT NOW
IN COMMITTEE, IF YOU'D LIKE TO
SEE AN EXTENDED VERSION,
TWO-PLUS HOURS OF THIS TYPE OF
CONVERSATION, IT'S ON SEATTLE
CHANNEL FROM THIS MONDAY
MORNING'S MEETING. IT WAS A
GOOD, LONG ROBUST CONVERSATION
WHERE WE GOT INTO A LOT OF THE
DETAILS AND A LOT OF THE SLIDES
THAT ARE IN THE APPENDIX OF THIS
PRESENTATION. AND SO I'LL LET
TOM GIVE HIS PRESENTATION NOW
BUT THIS IS JUST A SNAPSHOT OF
THE INFORMATION THAT TOM HAS
BEEN ABLE TO ANALYZE SINCE
MONDAY. SO TODAY IS WEDNESDAY.
THAT'S 48 HOURS LATER AND SO
IT'S NOT A COMPLETE ANALYSIS ON
OUR BIENNIA, ON THE IMPACT ON
THE BIENNIUM BUT IT DID WANT TO
PROVIDE THIS INFORMATION IN REAL
TIME AS THINGS ARE SHIFTING AS
WE MOVE INTO AUGUST. TOM, OVER
TO YOU.
>> THANK YOU CHAIR. THANK YOU
FOR THE GRACE IN UNDERSTANDING
THE SHORT TURNAROUND. THIS IS
THE COMMITTEE MEMBERS, A LITTLE
UPDATE ON KIND OF A LONG-TERM
PERSPECTIVE FOR BOTH THE GENERAL
FUND AND THE PAYROLL EXPENSE TAX
FUND GIVEN THE REVENUE RESULTS
FOR AUGUST. SO THIS SIMPLY SHOWS
THE GRAPH THAT IS FAMILIAR AT
THIS POINT FOR THE GENERAL FUND,
SHOWING THE PROJECTION THROUGH
2028. SO WE'VE BEEN TALKING
THIS MORNING ABOUT THE 25 AND 26
SO THE CURRENT BIENNIUM'S
REVENUE IMPACTS. THIS TAKES THAT
PROJECTION OUT THERE TO GIVE A
SENSE OF KIND OF THE LONGER-TERM
STRUCTURAL DEFICIT. AND SO, AS
YOU CAN SEE, BACK IN APRIL WE
WERE LOOKING AT ABOUT $149
MILLION OR SO AVERAGE DEFICIT IN
'27 AND '28 IN THE GENERAL
FUND. SO GIVEN THE IMPROVEMENT
IN THE FORECASTED REVENUE, THAT
NUMBER IS NOW $91 MILLION. SO
GOING IN THE RIGHT DIRECTION,
STILL A STRUCTURAL CHALLENGE
AFTER THIS CURRENT BIENNIUM. YOU
KNOW THE 24 AND 25 NUMBERS ARE
EXCLUDING LEGISLATIVE CHANGES
AND CARRYFORWARD, SO IT'S NOT
REALLY THE FULL PICTURE OF
REVENUE. THE BEST WAY TO SEE
THAT IS IN A TABLE THAT IS UNDER
DEVELOPMENT RIGHT NOW. WE'LL
FOLLOW UP WITH THAT WHEN IT'S
AVAILABLE. SO FOR THE JUMPSTART,
PAYROLL EXPENSE TAX FUND, GIVEN
AUGUST NUMBERS, SO IN APRIL WE
WERE LOOKING AT ABOUT AN 85 OR
SO MILLION DOLLAR DEFICIT IN
THIS FUND AND IN THE OUT YEARS
THAT NUMBER HASN'T
SIGNIFICANTLY CHANGED SO IT
STILL KIND MAINTAINED THE TREND
THAT WE WERE LOOKING AT IN
APRIL. SO AGAIN, THAT'S WHAT
WE'RE SEEING WITH THE DATA
RIGHT NOW AND THIS IS GENERALLY
THE NUMBER THAT WILL BE USED IN
THE DEVELOPMENT OF THE BUDGET
FOR FALL. SO ONE WAY TO LOOK AT
IT, SINCE THESE ARE THE TWO MORE
ABLE FUNDS THAT THE CITY USES IN
THE BUDGET, IS TO COMBINE THE
TWO. THEY ARE -- THEY INTERSECT
BY WAY OF A TRANSFER IN THE
BUDGET THAT MOVES MONEY FROM THE
PAYROLL EXPENSE TAX FUND BACK TO
THE GENERAL FUND SO IT MAKES
SENSE TO LOOK AT IT IN A
COMBINATION. SO WHEN YOU COMBINE
THEM YOU CAN SEE ON THE GRAPH
AND IN 27 AND 28 THE PROJECTED
DEFICIT IS 176 SO THIS IS THE
STRUCTURAL DEFICIT. THE FUND IS
ABOUT $176 MILLION AND THAT'S A
BIG NUMBER BUT IT'S AN
IMPROVEMENT AGAIN FROM THE
NUMBER THAT WE SHOW IN APRIL,
WHICH IS AROUND $233 MILLION. SO
THE IMPROVEMENT IN THE GENERAL
FUND IN THE OUT YEARS IS HAVING
AN ACT ON THIS COMBINED DISPLAY.
AND AGAIN AS I INDICATED, WE ARE
STILL LOOKING AT THE IMPACT ON
THE CURRENT BIENNIUM. THE
NUMBERS IMPROVING. WE JUST WANT
TO MAKE SURE THAT MYSELF WORKING
WITH CBO, WE HAVE AN
UNDERSTANDING OF EXACTLY WHO WE
INCLUDE, BOTH EXPENDITURE AND
REVENUE CHANGES, WITH THAT
NUMBER LOOKS LIKE AND THAT WILL
BE THE NUMBER HEADING INTO THE
FALL BUDGET PROCESS.
>> THANK YOU TOM. SHORT AND
SWEET, TO THE POINT, AND I
REALLY DO APPRECIATE THE ONGOING
ANALYSIS IS ALREADY OCCURRING 48
HOURS AFTER THIS REVENUE
FORECAST ABOUT THE IMPACT ON THE
2025 AND 2026 BUDGET. BECAUSE
THAT IS THE WORK THAT WE ARE
MOVING INTO, IN THE SHORT WEEKS,
AND SO COLLEAGUES, I DO WANT TO
CHECK IN WITH YOU. WE HAD
RESERVED NOT AS MUCH TIME AS I
EXPECTED FURTHER QUESTIONS BUT
WE STILL HAVE SOME TIME. BUT I
WOULD LIKE TO GET US OUT OF HERE
AT 11:30, SO WE HAVE 13 MINUTES
FOR QUESTIONS, AND I SEE COUNCIL
MEMBER SEC? THANK YOU CHAIR AND
THANK YOU EVERYONE FOR THIS
PRESENTATION TODAY. REALLY
APPRECIATE ALL THE WORK AND
EXPERTISE THAT WENT INTO
TODAY'S PRESENTATION. SO AT A
HIGH LEVEL, CAN YOU MENTION --
AND WHEN WE TALK ABOUT THE
OUTLOOK AHEAD, ON A GOING
FORWARD BASIS, THIS IS A COMPLEX
SET OF FACTORS FOR A
MACROECONOMIC PERSPECTIVE, LOCAL
MARKET CONDITIONS, SOME
UNCERTAINTY AT ALL LEVELS BUT
WHEN YOU TAKE A STEP BACK AT A
HIGH LEVEL, WHAT IS THE TOP
FACTOR OR TOP TWO FACTORS,
LIMITED TO TWO, PLEASE, WHEN WE
THINK ABOUT LOOKING FORWARD IN
THE OUTLOOK AHEAD THAT GIVES US
SIGNS OF HOPE OR OPTIMISM GOING
FORWARD? WHAT IS THE NUMBER ONE
FACTOR, OR TOP TWO?
>> I DON'T KNOW IF I WOULD SAY
THAT WE ARE REALLY OPTIMISTIC
ABOUT THE OUTLOOK. WE ARE JUST
LESS CONCERNED AND LESS WORRIED,
I GUESS, THEN IN APRIL. AGAIN
THE MAIN FACTOR IS THE TARIFFS
SO FAR HAVE NOT HAD REALLY THE
DAMAGING EFFECT THAT WAS
ANTICIPATED TO OCCUR REALLY
QUICKLY. THE INFLATION IS
EXPECTED TO GO UP. THE ECONOMY
IS SLOWING DOWN. THE JOB GROWTH
IS SLOWING DOWN. BUT AGAIN THERE
IS A HOPE THAT THERE HAS BEEN AN
OFF-RAMP FOUND AND THE TARIFFS
ARE NOT GOING TO BE AS HIGH AS
SOME INITIAL ESTIMATES WERE
SUGGESTING, LET'S SAY 145%
TARIFF ON CHINA WOULD BE REAL
DAMAGING AND WOULD LEAD TO
REALLY SIGNIFICANT NEGATIVE
IMPACTS FOR THE ECONOMY,
NATIONAL, REGIONAL LEVEL AND
LOCAL LEVEL.
>> COUNCILMEMBER SAKA, IF I MAY
JUST HIGHLIGHT SOMETHING FROM
THE MEETING EARLIER THIS WEEK
WHERE DIRECTOR DORIS WAS VERY
CONCERNED IN APRIL ABOUT THE
TARIFFS BECAUSE THIS FORECAST
WAS TAKEN IN THE SECOND OF THREE
WEEKS OF THAT TARIFF
CONVERSATION BUT I WAS LESS
CONCERNED THAT TODAY WE'VE
SWITCHED PLACES WHERE HE IS LESS
CONCERNED AND I'M MORE
CONCERNED BECAUSE IF -- CORRECT
ME IF I'M WRONG, THE ONLY
REASON WE DID NOT CHOOSE A
PESSIMISTIC OUTLOOK THIS TIME
WAS BECAUSE OF THE WEIGHT WITHIN
THAT ALGORITHM ABOUT WHETHER OR
NOT WE'LL HAVE A RECESSION. SO
IF WE TAKE OUT THE RECESSION
FACTOR, WE WOULD BE CHOOSING A
PESSIMISTIC OUTLOOK TODAY.
CORRECT ME IF I'M WRONG. AND
FROM THERE, THE NEXT OUTLOOK OR
FORECAST WE GET IS IN THE MIDDLE
OF OUR BUDGET PROCESS WHERE
WE'LL HAVE TO MAKE THE CHANGES.
SO THAT'S WHY I'M MORE
CONCERNED TODAY THAN DIRECTOR
DORIS BUT IT'S ALWAYS FUN TO
TRADE SPOTTS ON THE TABLE.
>> THANK YOU, CHAIR. THAT
ACTUALLY LEADS TO MY NEXT
QUESTION, INVERSE OF THE FORMER
ONE. SO TODAY WHAT ARE YOU MOST
CONCERNED -- WHAT IS THE NUMBER
ONE FACTOR OR TOP TWO? NUMBER
ONE, NUMBER ONE FACTOR THAT YOUR
MOST CONCERNED WITH TODAY ABOUT
THE OUTLOOK AHEAD? LAST TIME IT
WAS TARIFFS, RIGHT? TODAY, WHAT
IS THE NUMBER ONE FACTOR IN YOUR
ASSESSMENT THAT GIVES YOU THE
MOST CONCERNED?
>> IT WOULD BE STILL THE TARIFFS
AND JUST OVERALL AMOUNT OF
UNCERTAINTY RELATED TO TARIFFS,
RELATED TO ALL THE OTHER POLICY
CHANGES. THERE IS GENERALLY A
LOT OF UNCERTAIN THE SO IT'S
REALLY HARD, GIVEN THE LIMITED
DATA THAT WE HAVE AND GIVEN THE
DETERIORATING QUALITY OF THE
DATA ON THE NATIONAL LEVEL IN
GENERAL. IT'S HARD TO CREATE A
FORECAST THAT WOULD BE AS
PRECISE AS A COUPLE OF YEARS
AGO.
>> I'LL ADD OBSERVATIONS THAT
TIE THE TWO TOGETHER. ONE IS THE
TARIFFS IN THE CONTEXT OF
PRESSURES ON INFLATION. I THINK
WE GOT LUCKY TO DATE THAT WE
HAVEN'T SEEN TERRACE REFLECTED
IN INFLATION AND EVERY
EXPECTATION AND FORECAST IS THAT
THEY WILL. THAT IN COMBINATION
WITH SLOWING JOB GROWTH THAT
APPEARS TO HAVE BECOME EVIDENT
ACTUALLY SINCE MUCH OF THIS
FORECAST WAS REPAIRED, THAT
COMBINATION IS A BIT OF A RECIPE
FOR DISASTER BECAUSE IT LEAVES
THE FED NO GOOD OPTIONS. YOU
START TO LOWER INTEREST RATES IN
ORDER TO ENCOURAGE HIRING AND
YOU'LL START PUSHING UP
INFLATION. AND IF YOU KEEP RATES
HIGH, YOU'RE NOT GETTING THE
ECONOMY STIMULUS. STAGFLATION IS
THE PHRASE THAT IS USED. THAT IS
A REAL RISK IN THE NUMBERS THAT
WE ARE SEEING. SO I'M BETTER AT
THAT ANSWER THAN DARK ONES.
>> THANK YOU, DIRECTOR NOBLE.
VERY HELPFUL. AND THE --
DEFINITELY MINDFUL OF THE IMPACT
THAT LOWERING RATES COULD
POTENTIALLY HAVE ON INFLATION
AND THE BROADER IMPACTS. COULD
YOU HELP ME BETTER UNDERSTAND
THE BROADER IMPACTS OF 10 THING
POTENTIAL FED RATE CUTS? SO
CUTTING THE INTEREST RATES WOULD
OBVIOUSLY MAKE IT CHEAPER TO
LEND MONEY AND COULD POTENTIALLY
SPUR DEVELOPMENT, WHICH WE
LEARNED IS AN AREA THAT WE ARE
NOT SEEING NUMBERS IN A MANNER
THAT WE ORIGINALLY PROJECT DID.
SO -- BUT WHAT KIND OF BROADER
IMPACTS COULD THAT HAVE TO OUR
REVENUE PICTURE IF THE FED COMES
OUT AND DECIDES TO CUT INTEREST
RATES? THE POTENTIAL IMPACTS ON
INFLATION THAT WAS JUST NOTED.
>> IT WILL IN GENERAL MAKE IT
EASIER FOR HOUSEHOLDS TO FINANCE
THEIR DECISION, THEIR SPENDING.
IT WILL EVENTUALLY LOWER OUR
RATES THAT THE FED SETS, WILL
EVENTUALLY TRANSLATE TO LOWER
RATES FOR ANY SORT OF A LOAN,
FOR CREDIT CARDS, FINANCING,
MOTOR VEHICLE PURCHASES,
MORTGAGES, AS I MENTIONED, THE
MORTGAGE RATE IS STILL HIGH AND
IT DOES DEPEND ON THE LONG-TERM
INTEREST RATE RATHER THAN THE
SHORT ONE BUT EVENTUALLY THOSE
CHANGES IN SHORT RATE KEEPING
EVERYTHING ELSE UNCHANGED WOULD
TURN INTO LOWER RATES IN THE
LONG RUN SO OVERALL IT WOULD
STIMULATE THE ECONOMY.
>> COUNCILMEMBER SAKA, I DO SEE
WE HAVE COUNCILMEMBER KETTLE'S
HAND AND WE'VE GOT SIX MINUTES
LEFT.
>> THANK YOU, CHAIR. THAT WAS MY
FINAL QUESTION.
>> ON BEHALF OF EVERYONE SITTING
AT THE TABLE THERE, THEY ARE
ALSO AVAILABLE FOR ONE-ON-ONE
MEETINGS. SORRY TO OFFER YOU
YOUR SERVICES WITHOUT ASKING BUT
I KNOW THEY HAVE OFFERED IT TO
ME IN THE PAST. COUNCILMEMBER
KETTLE, THE FLOOR IS YOURS.
>> THANK YOU CHAIR STRAUSS AND
THANK YOU EVERYONE FOR COMING.
THANK YOU DIRECTOR DURAS AND
YOUR TEAM. AND THANK YOU, CHAIR,
FOR GIVING SOME GRACE TO MR.
RUSSELL. APPRECIATE THAT. ALSO
THANK YOU TO DIRECTOR NOBLE AND
MR. MIKE CELL FOR JOINING IN. I
KNOW WE ARE OUT OF TIME. I JUST
WANTED TO NOTE A FEW THINGS.
MAYBE A QUICK TWO QUESTIONS.
FIRST IS -- AND I'VE BEEN
FOLLOWING THIS MYSELF AT A
CERTAIN LEVEL THIS WHOLE TIME
AND GOING BACK OVER THE YEARS. I
BELIEVE THAT AT A MINIMUM WE
HAVE A 10% NATIONAL SALES TAX
THAT WILL FILTER INTO PRICES
OVER TIME. THE QUESTION IS HOW
LONG THAT WILL BE. AND IT COULD
BE EVEN GREATER BECAUSE THIS
PING-PONG THAT'S GOING ON, YOU
KNOW, THEY'RE ON, THEY'RE HELD
OFF, THE TARIFFS, THEY'RE ON,
AND I THINK IN TURN THEY WILL BE
INCREASED. I DON'T THINK SO, TO
MR. DIRECTOR DURAS'S POINT, NOT
TO 145 BUT IT'S FUNNY HOW WE
GET USED TO THESE BIGGER
NUMBERS. THESE ARE STILL MASSIVE
NUMBERS TO HISTORICAL NUMBERS
OVER THE LAST BASICALLY MY ADULT
LIFETIME AND SO NOW, AFTER
HEARING 145%, WHATEVER, NOW 30%
SOUNDS BETTER, 35%, WHAT'S
HAPPENING IN CANADA SOUNDS
BETTER, WHICH IS IN ITSELF A
CHALLENGE. AND SO I DO BELIEVE
THAT THE INFLATION PIECE IS
GOING TO PICK UP AND WHEN I,
LIKE DIRECTOR NOBLE SAYS WE
SHOULD COUNT OURSELVES LUCKY
THAT IT HASN'T HAPPENED SO FAR,
THE WEAKER JOBS PIECE, FED RATE
CUT, IN A WAY THAT WOULD BE
PROBABLY BENEFICIAL TO OUR PET.
YOU KNOW NUMBERS COMING IN AND I
FIND THAT OF INTEREST. I THINK
FOR THE PUBLIC AS WELL, I NEVER
REALLY HEARD THIS TERM, ALTHOUGH
RECENTLY I HAVE, DIRECTOR DURAS.
COULD YOU SPEAK TO THE TERM
GROWTH RECESSION?
>> SURE. SO THAT WAS THE
PESSIMISTIC SCENARIO IN MARCH
ESSENTIALLY WAS, IT MEANS THAT
THE ECONOMY CONTINUES TO GROW,
THE GDP DOES NOT DECLINE BUT THE
GROWTH ITSELF IS DIMINISHED AND
IS ASSOCIATED TO BE VERY LOW TO
NO GROWTH IN EMPLOYMENT,
POTENTIALLY EVEN IN EMPLOYMENT
THAT'S DECLINING, BUT AGAIN,
NOTHING THAT WOULD BE CONSIDERED
A RECESSION IN THE SENSE THAT
IT'S A BROAD-BASED AND
PERSISTENT DECLINE IN ECONOMIC
ACTIVITY. SO OCCASIONALLY THE
SCENARIO, THE MOST PESSIMISTIC
SCENARIOS ESSENTIALLY SAY, WELL
WE ARE NOT GOING TO GO INTO
RECESSION AS TRADITIONALLY
VIEWED BY DECLINING GDP, WE'RE
JUST GOING TO SEE VERY LITTLE TO
NO ECONOMIC GROWTH AND THAT'S
REFERRED IN GENERAL TO A GROWTH
RECESSION.
>> THANK YOU. I THINK IT'S GOOD
FOR THE PEOPLE OF SEATTLE TO
KNOW THAT AND THAT TERM COMBINED
WITH MR. NOBLE'S STAGFLATION IS
TAKING ME BACK TO THE LATE '70S
AND THAT'S NOT A VERY POSITIVE
THING IN TERMS OF ECONOMICS.
THANK YOU FOR YOUR POINTS ABOUT
THE B AND O CONTEXT , WITH THE
DIFFERENT PIECES GOING DOWN,
LIKE WHAT THE STATE HAS DONE.
THIS IS A CONCERN OF MINE AS WE
WERE JUST GOING THROUGH. WE HAVE
OUR PHYSICAL CHALLENGES SO WE
HAD TO TAKE ACTION BUT THERE'S
A LOT OF CONCERN THERE RELATED
TO THE CONTEXT OF IT, LIKE WITH
WHAT THE STATE HAS BEEN DOING,
AND INTERESTING, WHAT OTHER
JURISDICTIONS AROUND US ARE NOT,
AND THAT IS OF GREAT CONCERN IN
TERMS OF HOW IT WILL PLAY INTO
OUR NUMBERS AND GENERALLY I DO
THINK WE ARE AT HIGH RISK. I'M
ALSO CONCERNED AND MAYBE COULD
SPEAK TO THIS, THE IMPACT OF
POLITICIZATION OF ECONOMIC DATA
AS WE'VE JUST SEEN AT THE
FEDERAL LEVEL, THE PRESSURE IS
ON FED CHAIR JEROME POWELL . HOW
DO YOU THINK THAT'S GOING TO
IMPACT US? I'M JUST GOING TO
SAY THAT BECAUSE I KNOW I'M
GOING TO RUN OUT OF TIME.
THAT'S A CONCERN OF MINE SO I
WANT TO ASK YOU THIS QUESTION.
ALSO CONCERNED ABOUT WHAT THE
FEDERAL GOVERNMENT IS DOING,
PARTICULARLY IN IMMIGRATION OR
WITH FEDERAL LAW ENFORCEMENT IS
GOING TO HAVE ON THE FIFA WORLD
CUP, YOU MAY HAVE DOWNGRADED IN
TERMS OF THE NUMBER OF PEOPLE
WHO COME HERE DUE TO THE ACTIONS
THAT ARE BEING TAKEN AT THE
FEDERAL LEVEL SO SINCE WE ARE
RUNNING OUT OF TIME, I JUST WANT
TO SAY THANK YOU SO MUCH FOR
THIS BECAUSE IT INFORMS ABOUT
HOW -- WHAT WE NEED TO DO TO SET
OURSELVES UP IN 2027 AS MR. MIKE
CELL WAS TALKING ABOUT THE
STRUCTURAL DEFICIT PIECES. WE
HAVE TO BE LOOKING AT THESE IN A
MATTER-OF-FACT WAY, TAKE THE
ACTIVIST PIECES OR THE
IDEOLOGICAL PIECES OUT AND WE
JUST GOT TO LOOK AT THE NUMBERS,
WHICH IS I THINK SOMETHING I
SHARE SOMEWHAT WITH EVERYONE AT
THAT TABLE AND THAT MIGHT BE TMI
FOR A COUNCILMEMBER BUT THERE
YOU GO. THANK YOU, CHAIR. 11:30,
BAM .
>> THANK YOU COUNCILMEMBER FOR
KEEPING US ON TIME. I WANT TO
THANK THE FOLKS FROM THE
FORECAST OFFICE, FROM CBO.
PLEASE GIVE MY REGARDS TO DAVE
HANIS SINCE HE'S NOT HERE AND
WELCOME RICHARD. THANK YOU TO
TOM AND THEN AS WELL.
COLLEAGUES, THIS DOES CONCLUDE
OUR AUGUST 6th MEETING OF THE
FINANCE, NATIVE COMMUNITIES AND
TRIBAL GOVERNANCE COMMITTEE. OUR
NEXT COMMITTEE MEETING WILL BE
ON WEDNESDAY, SEPTEMBER 3rd.
WE'LL BE TAKING UP THE SMALL
WORKS ROSTER AS WELL AS WE'LL
BE HAVING A TRIBAL SUMMIT UP
DATE AHEAD OF THE NEXT TRIBAL
SUMMIT, WHICH IS UNZIPPED OF HER
16th. OUR TEAM WILL BE SENDING
IT OUT TO AT LEAST THESE
COMMITTEE MEMBERS. WE'D LOVE
FOR YOU TO JOIN. IN THE TRIBAL
WORK I WILL ALSO BE MEETING WITH
THE MUCKLESHOOT TRIBAL COUNCIL
NEXT WEEK AS PART OF OUR
GOVERNMENT TO GOVERNMENT ONGOING
WORK. WE WOULD LIKELY HAVE THE
SNOQUALMIE TRIBAL COUNCIL COME
TO OUR COMMITTEE IN SEPTEMBER
AND WE MAY HAVE THE MUCKLESHOOT
TRIBAL COUNCIL COME TO OUR
COMMITTEE IN SEPTEMBER. WITH
THAT, IF THERE IS NO FURTHER
BUSINESS TO COME BEFORE THE
COMMITTEE, WE WILL BE ADJOURNED.
SEE NO FURTHER BUSINESS, WE ARE
ADJOURNED. THANK YOU.