GOOD MORNING, WELCOME TO THE MA
2, 2023 MEETING. THE TIME IS
9:30 1 AM. WILL OUR CLERK
PLEASE CALL THE ROLE.
>> COUNCILMEMBER HERBOLD .
>> HERE.
>> COUNCILMEMBER MORALES.
>> HERE.
>> COUNCILMEMBER SAWANT.
COUNCILMEMBER STRAUSS.
COUNCILMEMBER PEDERSEN.
>> THREE PRESENT. I KNOW AT
LEAST THIS TIME COUNCILMEMBER
STRAUSS LET US KNOW HE IS ON HI
WAY AND WILL BE COMING LATER. I
EXCUSED AT THIS TIME. WE WILL
SEE IF ANOTHER COUNCIL MEMBERS
SHOWS UP AS WELL. WE DO HAVE
QUORUM SO WE WILL GET STARTED.
IF THERE IS NO OBJECTION,
TODAY'S PROPOSED AGENDA WILL BE
ADOPTED. HEARING NO OBJECTION,
THE AGENDA IS ADOPTED. CHAIRS
REPORT. GOOD MORNING AGAIN AND
WELCOME TO THE TRANSPORTATION
AND SEATTLE PUBLIC UTILITIES
COMMITTEE. TODAY WE HAVE FOUR
ITEMS ON OUR AGENDA. FIRST IN
THE AGENDA WE HAVE COUNCIL BUIL
120543 WHICH WOULD RENEW THE
TERM PERMIT AUTHORIZING SEAPORT
MIDSTREAM PARTNERS TO MAINTAIN
PIPELINE ON SOUTHWEST FLORIDA
STREET. THE SECOND ITEM IS
COUNCIL BUILT 120544 WHICH WOUL
RENEW THE AUTHORIZING QWEST
CORPORATION TO MAINTAIN AND
OPERATE UTILITY TUNNEL ON SENEC
STREET. OUR THIRD ITEM IS COURT
FILE 314517 WHICH WOULD EXTEND
CONDITIONAL APPROVAL FOR A
SUBTERRANEAN ALLEY VACATION O
ANYWAY. THOSE FIRST THREE
PIECES OF REGISTRATION OR
RELATIVELY MINOR. I'D LIKE TO
VOTE THEM OUT OF COMMITTEE
TODAY. THAT IS THE PLAN AT
LEAST. WE CAN DISCUSS THAT
LATER FOR EACH ITEM. THE LAST
ITEM ON OUR AGENDA IS A BRIEFIN
AND DISCUSSION ON THE ANNUAL
FINANCIAL AUDIT. SEATTLE PUBLI
UTILITIES. AT THIS TIME WE WILL
GO AHEAD AND OPEN THE GENERAL
PUBLIC COMMENT PERIOD FOR THE
TRANSPORTATION AND SEATTLE
PUBLIC UTILITIES COMMITTEE. JUS
CHECKING TO SEE IF WE HAVE
ANYONE SIGNED UP IN PERSON. AND
THEN ONLINE. WE DO CONTINUE TO
HAVE HYBRID MEETINGS FOR THE
PUBLIC WHICH IS VERY HELPFUL.
GREAT. SO WE DON'T HAVE ANYBODY
SIGNED UP ONLINE. WE DO HAVE ON
PERSON IN PERSON. LET ME GO
AHEAD AND READ THE INSTRUCTIONS
AND PEOPLE ARE ABLE TO SIGN UP
WHILE I'M READING THE
INSTRUCTIONS. I WILL MODERATE
THE PUBLIC COMMENT PERIOD IN TH
FOLLOWING MANNER. I WILL START
WITH SPEAKERS WHO REGISTERED
ONLINE AND THEN: SPEAKERS IN
COUNCIL CHAMBERS. PUBLIC COMMEN
PERIOD IS UP TO 20 MINUTES. TWO
MINUTES FOR EACH SPEAKER. I
WILL: SPEAKERS TWO AT A TIME IN
THE ORDER IN WHICH REGISTERED O
THE WEBSITE AND THE SIGN IN
SHEET AT THE CHAMBERS HERE AT
CITY HALL. IF YOU HAVE NOT YET
REGISTERED AND WOULD LIKE TO
YOU CAN SIGN UP BEFORE THE END
OF THE PUBLIC COMMENT PERIOD BE
GOING TO THE COUNCIL
WEBSITE@SEATTLE.GOV
FORD/COUNCIL OR USING THE SIGN
IN SHEET NEAR THE PUBLIC COMMEN
MICROPHONE HERE IN THE FRONT O
CITY COUNCIL CHAMBERS. REMOTE
SPEAKERS, ONCE I CALL YOUR NAM
STAFF WILL UNMUTE THE MICROPHON
AND AN AUTOMATIC PROMPT OF YOU
HAVE BEEN UNMUTED WILL BE THE
QUEUE THAT IT'S THEIR TURN TO
SPEAK. YOU MUST PRESS STAR SIX
TO SPEAK. ALL PUBLIC COMMENTERS
PLEASE BE ADVISED, STATE YOUR
NAME AND THE ITEM YOU'RE
ADDRESSING. AS A REMINDER PUBLI
COMMENT SHOULD RELATE TO AN ITE
ON TODAY'S AGENDA OR TOUR
COMMITTEES OVERSIGHT
RESPONSIBILITIES FOR THE CITY
COUNCIL RULES. SPEAKERS WILL
HEAR A CHIME WHEN 10 SECONDS AR
LEFT . WANT TO HEAR THE CHIME W
ASK YOU TO WRAP UP YOUR PUBLIC
COMMENT. SPEAKERS DO NOT END
THEIR COMMENTS ON TIME, AT THE
END OF THE ALLOTTED TIME THE
MICROPHONE WILL BE MUTED TO
ALLOW US TO ON THE NEXT SPEAKER
AND CONDUCT THEIR BUSINESS. IF
YOU ARE PROVIDING PUBLIC COMMEN
REMOTELY, ONCE YOU'VE COMPLETED
YOUR COMMENT PLEASE DISCONNECT
FROM THE LINE AND IF YOU PLAN T
FOLLOW THE MEETING PLEASE DO SO
VIA THE SEATTLE CHANNEL OR THE
LISTENING OPTIONS LISTED ON
AGENDA. THE PUBLIC COMMENT
PERIOD FOR THIS MEETING IS OPE
AND WE WILL BEGIN WITH THE FIRS
SPEAKER. WE DON'T HAVE ANY
SPEAKERS REMOTE BUT WE HAVE ONE
SPEAKER IN PUBLIC. SO PLEASE,
CHRISTOPHER, GO AHEAD AND STATE
YOUR NAME . THANK YOU FOR COMIN
IN TODAY.
>> THANK YOU VERY MUCH. NAME IS
CHRIS, I AM THE COCHAIR OF THE
SEATTLE PEDESTRIAN ADVISORY
BOARD. I AM HERE TODAY TO ONE
FOLLOW UP ON EMAILS I'VE BEEN
SENDING THE COMMITTEE. THE BOAR
HAS BEEN VERY BUSY TALKING TO
STAFF, WORKING WITH THE SEP
GROUP AND THE TRAFFIC AND SAFET
ENGINEER AT SDOT. OF THE THREE
LETTERS WE SENT YOU ON COMMENTS
FOR THOSE ISSUES, I WANTED TO
GO OVER WHAT ARE SOME REALLY
COMMON THEMES, WHICH ARE, WE SE
PEDESTRIANS GETTING STRUCK MOST
OFTEN AT ARTERIALS AND
INTERSECTIONS. THIS IS GOTTEN
WORSE OVER THE LAST TWO YEARS.
IT IS REALLY A CRISIS THAT I
BELIEVE THE CITY IS DEALING
WITH AND WE NEED TO RESPOND AS
SUCH. I THINK WHAT THIS
COMMITTEE COULD DO WOULD BE TO
HELP FACILITATE OR ENCOURAGE
STAFF TO MOVE MORE QUICKLY IN
RESPONSE TO PEDESTRIAN NEEDS
SUCH AS CROSSWALKS. ESPECIALLY
AT INTERSECTIONS WHERE WE SEE A
LOT OF PEDESTRIANS BEING HIT
TODAY AND THERE AREN'T
NECESSARILY MARKED CROSSWALKS A
EVERY INTERSECTION. BUT THOSE
INTERSECTIONS ARE ALL
CROSSWALKS. THAT IS REALLY THE
SUMMARY. THERE IS, I THINK SIX
PAGES OF COMMENTS THE BOARD HAS
PUT TOGETHER IN CONJUNCTION
WITH E-BIKE BOARD ON THOSE THRE
DIFFERENT ISSUES. I KNOW WE
DON'T WANT TO WAIT FOR THE STP
TO BE FINALIZED AND ADOPTED TO
MAKE MOVEMENT. YOU DON'T
NECESSARILY WANT TO WAIT FOR TH
PROVISION ZERO IMPLEMENTATION
PLAN. WE WOULD REALLY LIKE TO
SEE SOME URGENCY ACTION TAKEN T
TRY TO SAVE THE LIVES OF
PEDESTRIANS ON OUR STREETS
TODAY. THAT IS ALL.
>> THANK YOU VERY MUCH. WE
APPRECIATE YOU SENDING THOSE
EMAILS AS WELL AND WE KNOW THE
SEATTLE DEPARTMENT OF
TRANSPORTATION IS LISTING TODAY
AND WE WILL MAKE SURE THE
HIGHEST LEVELS GET THAT
INFORMATION. THANK YOU.
>> THANK YOU VERY MUCH.
>> OKAY, CHECKING AGAIN ONLINE,
THERE ARE NO SPEAKERS ONLINE. W
WILL GO AHEAD AND CLOSE OUT THE
PUBLIC COMMENT PERIOD. AND WE
WILL GET ON TO OUR AGENDA.
WILL THE CLERK PLEASE READ THE
FULL TITLE OF THE FIRST AGENDA
ITEM INTO THE RECORD?
>> COUNCIL BUILT 120543. AN
ORDINANCE GRANTING SEAPORT
MIDSTREAM PARTNERS, LLC
PERMISSION TO MAINTAIN AND
OPERATE A PIPELINE SYSTEM IN,
UNDER, ALONG, AND ACROSS
SOUTHWEST FLORIDA STREET,
BETWEEN 13th AVENUE SOUTHWEST
AND 16th AVENUE SOUTHWEST, FOR
30-YEAR TERM, RENEWABLE FOR TWO
SUCCESSIVE 15-YEAR TERMS;
SPECIFYING THE CONDITIONS UNDER
WHICH THIS PERMIT IS GRANTED;
AND PROVIDING FOR THE ACCEPTANC
OF THE PERMIT AND CONDITIONS.
FOR BRIEFING, DISCUSSION AND
POSSIBLE VOTE.
>> THANK YOU. 120543 WILL RENEW
A PIPELINE TERM PERMIT. ENABLIN
SEAPORT MIDSTREAM PARTNERS TO
MAINTAIN AND OPERATE A PIPELINE
SYSTEM INCOME UNDER COME ALONG
AND ACROSS BETWEEN 13th AVENUE
SOUTHWEST AND 16th AVENUE
SOUTHWEST ON HARBOR ISLAND IN
DISTRICT 1. BEFORE I TURN OVER
TO THE PRESENTERS, I WANTED TO
THANK LISH WHITSON FOR HIS
ANALYSIS OF THIS AND ASKED, IS
THERE ANY INTRODUCTORY REMARKS
YOU WANT TO MAKE , LISH?
>> VERY BRIEFLY, YOU WILL
PROBABLY HEAR THIS FROM THE
OTHER PRESENTERS, THIS IS A
RENEWAL FOR A TERM PERMIT THAT
HAS BEEN PLACED SINCE THE
1950s. THIS AND THE PREVIOUS
ITEM OUR LONG-STANDING USE OF
THE RIGHT AWAY BY PRIVATE
PROPERTIES WITH APPROVAL UNDE
THIS ORDINANCE WOULD BE EXTENDE
FOR ANOTHER UP TO 30 YEARS.
>> THANK YOU. WE WILL GO AHEAD
AND HEAR FROM OUR PRESENTERS AT
SDOT. AND ALSO WE HAVE ANOTHER
GUEST, GO AHEAD, AMY. GOOD
MORNING.
>> GOOD MORNING COUNCIL MEMBERS
I THINK BILL IS PULLING UP THE
PRESENTATION. LIKE EVERYBODY HA
MENTIONED, THIS WOULD COUNCIL
BILL WOULD GRANT PERMISSION TO
SUPPORT MIDSTREAM PARTNERS TO
CONTINUE OPERATING AN EXISTING
PIPELINE SYSTEM IN SOUTHWEST
FLORIDA STREET BETWEEN 13th
AVENUE SOUTHWEST AND 16th AVENU
SOUTHWEST. NEXT SLIDE, PLEASE.
AS LISH MENTIONED, THIS IS BEEN
IN EXISTENCE SINCE THE
BEGINNING OF THE LAST CENTURY.
THE MID-1950S. SEAPORT IS A
STORAGE AND DISTRIBUTION
COMPANY, IT IS NOT A PIPELINE
OPERATOR. THEY STORE AND
TRANSMIT THE PRODUCTS FROM
DELIVERIES IN AND OUT TO TRUCK
FOR DELIVERIES ON LAND. SDOT
HAS REVIEWED THE APPLICATION AN
RECOMMENDS APPROVAL TO GRANT
PERMIT. NEXT SLIDE, PLEASE.
THIS PERMIT, IF IT IS PAST, WIL
BE FOR 30 YEARS. THE TERMS AND
CONDITIONS OF THE PERMIT ARE
GRANTED BY THE ORDINANCE
INCLUDING UPDATING THE BOND,
INSURANCE REQUIREMENTS,
INSPECTION, INDEMNIFICATION,
OBLIGATIONS AND SPECIFICALLY FO
PIPELINES WE HAVE A GREATER MOR
EXTENSIVE INSURANCE
REQUIREMENTS RELATED TO
POLLUTION . AND THAT IS INCLUDE
IN THIS PERMIT. NEXT SLIDE,
PLEASE. THIS MAP SHOWS THE
GENERAL LOCATION OF THE PIPELIN
SYSTEM. IN SOUTHWEST FLORIDA
STREET AND 13th AVENUE SOUTHWES
AT HARBOR ISLAND. NEXT SLIDE,
PLEASE. SDOT IS SEEKING COUNCIL
APPROVAL FOR THIS EXISTING
PIPELINE SYSTEM. IF COUNCIL
APPROVES THE PERMIT IT WILL BE
RENEWED THROUGH 2053. IF YOU
HAVE ANY QUESTIONS PLEASE LET M
KNOW. AND KARL BERNARD FROM
SEAPORT MIDSTREAM PARTNERS IS A
THE TABLE AS WELL. IF YOU HAVE
QUESTIONS ABOUT THE OPERATIONS.
>> THANK YOU VERY MUCH. ANY
COMMENTS OR QUESTIONS ABOUT THI
RENEWAL OF THE TERM PERMIT ON
HARBOR ISLAND? AND, LISH, DID
YOU WANT TO ADD ANYTHING?
>> NO, THANK YOU.
>> ALL RIGHT, I DID NOTICE ON
THE AERIAL PHOTOGRAPH THAT THER
ARE ABSOLUTELY NO TREES ON
HARBOR ISLAND. WE NEED THEM AL
THROUGHOUT THE CITY. THAT MIGH
BE SOMETHING TO CONSIDER. BUT
IN TERMS OF THIS RENEWAL, THE
TERM PERMIT, I APPRECIATE THE
WORK SDOT HAS DONE ON THIS END
CENTRAL STAFF ANALYZING IT. I
DON'T HAVE ANY COMMENTS OR
QUESTIONS MYSELF.
>> MR. CHAIR --
>> COUNCILMEMBER MORALES.
>> THANK YOU, EVERYONE, THIS I
A NEW AREA FOR ME , OIL STORAGE
, SO THIS IS ALL A LITTLE BIT
-- I AM LEARNING HERE. BUT, I
WONDER IF YOU COULD JUST TALK
ABOUT THE INSURANCE ISSUE YOU
MENTIONED? AND, WHAT SORT OF
CONTINGENCIES THAT MIGHT ADDRES
SO THAT WE HAVE AN
UNDERSTANDING OF HOW THE OIL I
STORED AND HOW IT GETS IN AND
OUT AND WHAT THE IMPLICATIONS
MAY BE IF THERE IS SOME SORT O
ACCIDENT THERE.
>> I CAN ANSWER THE QUESTIONS
RELATED TO INSURANCE AND THE
OBLIGATIONS OF THE PERMIT . CAR
CAN ANSWER QUESTIONS ABOUT WHA
THEY HAVE IN PROTECTION IN THE
FACILITY. SO, FOR TERM PERMITS
WE CONSULT WITH THE CITY'S RIS
MANAGEMENT AND ASK THEM FOR
THEIR REQUIREMENTS FOR
INSURANCE. AND THEY PROVIDED AN
EXHAUSTIVE LIST FOR THIS AND
INCLUDED THE LANGUAGE FOR THAT.
IN THE PERMIT. WE ALSO REQUIRE
AN ENVIRONMENTAL
INDEMNIFICATION THE PROTECTS TH
CITY'S INTEREST IN CASE A
POLLUTION. CARL, DID YOU WANT T
TALK ABOUT THE ON-SITE
OPERATIONS?
>> YOU, GOOD MORNING. HAPPY TO.
THANK YOU AND GOOD MORNING
EVERYONE. APPRECIATE THE
OPPORTUNITY. THE FACILITY IS
VOLT STORAGE FACILITY. WE
ACTUALLY STORE PETROLEUM
REFINED PRODUCTS AND WE
DISTRIBUTE THOSE TO THE RETAIL
MARKETS. THE PRODUCT COMES INTO
THE TERMINAL HIGHWAY OF OLYMPI
PIPELINE AND ALSO COMES IN BY
MARINE AS WELL. AND FROM THERE
IT GOES IN OUR STORAGE TANKS.
WE TRANSPORTED ONTO TRUCKS AND
THE TRUCKS GO OUT TO THE RETAIL
MARKET TO THE END-USER WHICH IS
THE CONSUMER. THAT IS BASICALLY
HOW THE PRODUCT FLOWS IN AND OU
OF THE FACILITY TODAY. AGAIN,
THE FACILITY HAS BEEN THERE BAC
TO THE EARLY 30s. THERE ARE TWO
OTHER FACILITIES ON HARBOR
ISLAND AS WELL. THERE IS A
SHELL TERMINAL AND ALSO SO
THERE ARE THREE OF US OPERATING
AT HARBOR ISLAND TODAY. I WILL
SAY THAT THE FACILITY IS A
HEAVILY REGULATED FACILITY. WE
ARE REGULATED BY THE FEDERAL
GOVERNMENT, THE UNITED STATES
COAST GUARD, THE OVERSEER
OPERATION, THE EPA ALSO
OVERSEES, THE STATE, WASHINGTO
DEPARTMENT OF ECOLOGY AND LOCAL
AUTHORITIES , THE FIRE MARSHAL'
OFFICE AS WELL. WE ARE HEAVILY
REGULATED WITH REGULAR
OVERSIGHT BY THE GOVERNING
AGENCIES.
>> THANK YOU.
>> --
>> I WANT TO MENTION THAT
COUNCILMEMBER SAWANT HAS BEEN
HERE FOR SEVERALMINUTES. AMY,
GO AHEAD AND CONTINUE.
>> THE ORDINANCE ALSO SPECIFIES
THAT THE PERMIT HOLDER PROVIDE
INSPECTION REPORTS TO THE CITY
OF SEATTLE EVERY TWO YEARS THAT
WE REVIEW WITH THE ROADWAY
STRUCTURES AND THOSE REPORTS
TALK ABOUT THE STRUCTURAL
INTEGRITY OF THE PIPELINE SYSTE
AND THE UPGRADE TANKS. THAT IS
ANOTHER CONDITION OF THE
ORDINANCE.
>> THANK YOU, I APPRECIATE THAT
>> THANK YOU, COUNCILMEMBER
MORALES. INTO SDOT OR CENTRAL
STAFF, CAN WE CONFIRM THE PORT
OF SEATTLE IS ON BOARD WITH THI
AS WELL? WE DON'T HAVE ANY
OBJECTIONS FROM THE PORT OF
SEATTLE FOR THIS?
>> I HAVE RECEIVED NO
INFORMATION FROM THE PORT OF
SEATTLE.
>> THANK YOU. COLLEAGUES,
ANYMORE COMMENTS OR QUESTIONS
BEFORE WE MOVE TO A VOTE ON THI
RENEWAL? THANK YOU FOR THE
PRESENTATIONS AND QUESTIONS AND
THE ADDITIONAL INFORMATION.
COUNCIL MEMBERS, I MOVE THAT W
RECOMMEND PASSAGE OF COUNCIL
BILL 120543. IS THERE A SECOND?
>> SECOND.
>> THANK YOU, IT HAS BEEN MOVE
AND SECONDED TO RECOMMEND
PASSAGE OF THIS COUNCIL BILL.
ANY FINAL COMMENTS OR QUESTIONS
BEFORE WE VOTE? WILL THE CLERK
PLEASE CALL THE ROLE ON THE
COMMITTEE RECORDATION TO PASS
COUNCIL BILL 120543 ITEM ONE ON
OUR AGENDA?
>> COUNCILMEMBER HERBOLD .
>> YES.
>> COUNCILMEMBER MORALES.
>> YES.
>> COUNCILMEMBER SAWANT.
>> YES.
>> COUNCILMEMBER PEDERSEN.
>> YES.
>> FOUR IN FAVOR AND THEN
OPPOSED.
>> THE MOTION CARRIES TO PASS
AND IT WILL BE SENT TO THE MAI
CITY COUNCIL MEETING. WILL THE
CLERK PLEASE READ THE FULL TITL
OF THE SECOND AGENDA ITEM?
>> AGENDA ITEM NUMBER TWO.
COUNCIL BILL 120544. AN
ORDINANCE GRANTING QWEST
CORPORATION PERMISSION TO
CONTINUE MAINTAINING AND
OPERATING AN EXISTING UTILITY
TUNNEL UNDER AND ACROSS SENECA
STREET, EAST OF 3rd AVENUE;
REPEALING SECTION 8 OF ORDINANC
123615; AND PROVIDING FOR THE
ACCEPTANCE OF THE PERMIT AND
CONDITIONS. FOR BRIEFING,
DISCUSSION AND POSSIBLE VOTE.
>> 120544 WOULD RENEW UTILITY
TUNNEL TERM PERMIT FOR QWEST
CORPORATION ACROSS SENECA STREE
EAST OF THIRD AVENUE IN
DISTRICT 7. BEFORE I TURN OVER
TO OUR PRESENTERS FROM SDOT,
AGAIN THANKING OUR CITY COUNCIL
CENTRAL STAFF, LISH WHITSON,
FOR HIS ANALYSIS, ANY OPENING
REMARKS FROM LISH?
>> SIMILAR TO THE LAST ONE, THI
IS A TERM PERMIT THE HAS BEEN I
PLACE SINCE THE 1950s.
>> OKAY, THANK YOU. I WILL TURN
OVER AGAIN TO AMY GRAY AT SDOT
>> THANK YOU. SO THIS IS FOR
UTILITY TUNNEL THAT HAS BEEN
THERE SINCE THE MID-1900S AS
WELL. THESE ARE BOTH FROM THE
SAME ERA. NEXT SLIDE PLEASE.
THE QWEST CORPORATION IS SEEKIN
PERMISSION TO CONTINUE
MAINTAINING AND OPERATING THIS
UTILITY TUNNEL UNDER SENECA
STREET. LUMEN TECHNOLOGIES IS
THE PARENT FIRM OF QWEST
CORPORATION BUT QWEST WILL BE
THE TERM HOLDER. THE TUNNEL
PROVIDES A FUEL CONNECTION
BETWEEN 1122 THIRD AVENUE AND
1203rd AVENUE. THROUGH A SERIE
OF COMPANY CHANGES BETWEEN THE
PACIFIC TELEPHONE AND TELEGRAPH
COMPANY, THE PERMIT IS QWEST AN
THERE TAKING RENEWAL. SDOT
RECOMMENDS APPROVAL. NEXT
SLIDE, PLEASE. AS WITH ALL
RENEWALS, WE CHECK TO MAKE SUR
THAT THE USE IS CONSISTENT WIT
THE GRANTING ORDINANCE. THE
RENEWAL WILL BE FOR 15 YEARS
AND THE COUNCIL BILL DETAILS AL
THE CONDITIONS OF THE PERMIT AS
WELL. NEXT SLIDE, PLEASE. THIS
MAP SHOWS THE GENERAL LOCATION
OF THE UTILITY TUNNEL IN
DOWNTOWN SEATTLE. NEXT SLIDE,
PLEASE. SDOT IS SEEKING COUNCI
APPROVAL OF THIS EXISTING
UTILITY TUNNEL UNDER SENECA
STREET. IF APPROVED IT WILL BE
APPROVED FOR 15 YEARS. AND
HAPPY TO ANSWER ANY QUESTIONS
YOU MAY HAVE.
>> THANK YOU VERY MUCH. AT
COUNCIL BRIEFING EIGHT DAYS AGO
I DID GIVE A PREVIEW OF THESE
ITEMS. I DO APPRECIATE YOU
GOING THROUGH THE MATERIALS FOR
THIS MEETING AS WELL. ARE THER
ANY QUESTIONS ABOUT THIS ITEM?
ALL RIGHT. ANYTHING TO ADD FROM
OUR CENTRAL STAFF, LISH?
>> NO, THANKS.
>> OKAY, THANK YOU. WE WILL GO
AHEAD AND PUT THIS UP FOR A
VOTE. COUNCIL MEMBERS, I MOVE
THAT THE COMMITTEE RECOMMEND
PASSAGE OF THIS COUNCIL BILL
120544, IS THERE A SECOND.
THANK YOU. IT IS BEEN MOVED AND
SECONDED TO RECOMMEND PASSAGE .
ANY FINAL COMMENTS OR QUESTION
FOR THIS RENEWAL BEFORE WE MOVE
TO A VOTE? OKAY. WILL THE CLERK
PLEASE CALL THE ROLE ON THE
COMMITTEE RECOMMENDATION TO PAS
COUNCIL BILL 120544 ITEM NUMBE
TWO ON OUR AGENDA?
>> COUNCILMEMBER HERBOLD .
>> YES.
>> COUNCILMEMBER MORALES.
>> YES.
>> COUNCILMEMBER SAWANT.
>> YES. CHAIR PEDERSEN.
>> YES.
>> FOUR IN FAVOR AND THEN
OPPOSED.
>> THE MOTION CARRIES AND IT
WILL BE SENT TO THE MAY 9
MEETING.
>> AGENDA ITEM NUMBER THREE,
314517. REQUEST FOR AN EXTENSIO
TO THE CONDITIONAL APPROVAL OF
PETITION OF CITY INVESTORS IV,
LLC TO VACATE A PORTION OF THE
ALLEY IN BLOCK 89, D.T. DENNY'S
5th ADDITION TO THE CITY OF
SEATTLE (CF 313894). FOR
BRIEFING DISCUSSION AND POSSIBL
VOTE.
>> QUICK FILE 314517 IS A
REQUEST FOR THE CITY TO EXTEND
CONDITIONAL APPROVAL OF A
SUBTERRANEAN ALLEY WITHIN
BLOCK 89 IN DISTRICT 7 WHICH WA
ORIGINALLY APPROVED THE A QUIC
FILE 313894 IN 2015. FOR A
FIVE-YEAR PERIOD. CONSTRUCTION
WAS DELAYED AS I UNDERSTAND
IT'S A PETITIONERS ARE HERE TO
REQUEST AN EXTENSION OF THE
ORIGINAL APPROVAL. THIS ALLIE
VACATION, SUBTERRANEAN ALLEY
VACATION WOULD ALLOW FOR THE
DEVELOPMENT OF AN OFFICE
BUILDING, RESIDENTIAL TOWER, TW
RETAIL BUILDINGS AND AN
UNDERGROUND PARKING GARAGE. WE
WILL HEAR MORE ABOUT THAT IN A
MOMENT. TODAY WE WILL HEAR FRO
SEATTLE DEPARTMENT OF
TRANSPORTATION AND PETITIONERS
ON THE PROJECT, AND THEN WE
WILL GET LISH WHITSON TO WALK
US THROUGH THE CONDITIONS OF
APPROVAL . WHICH THE COMMITTEE
WILL NEED BEFORE VOTING ON THE
CLERK FILE. AFTER ADDING THOSE
CONDITIONS, WE WILL VOTE ON TH
CLERK FILE IS CONDITIONED.
THERE WILL BE SOME FUN POETRY
PROCEDURE FOR THIS CLERK FILE.
BEFORE TURNING TO PRESENTERS, I
WANT TO CHECK IN THE CENTRAL
STAFF. LISH, THANK YOU FOR
ANALYZING THIS, ANY OPENING
REMARKS?
>> NO, I WILL TALK TO ABOUT IT
AFTER THE PRESENTATION.
>> THANK YOU. GOOD MORNING TO
BEVERLY BARNETT AND TEAM.
>> GOOD MORNING, THANK YOU FOR
GETTING US SCHEDULE THIS
MORNING. WE APPRECIATE IT. WE D
HAVE WITH US SEDATIVES , MURRA
AT CRAMPTON IS GOING TO DO A
POWERPOINT PRESENTATION TO
ORIENT YOU TO THE LOCATION OF
THE PROJECT. AND REMIND THE
COMMITTEE OF WHAT THE CITY
COUNCIL APPROVED IN 2015. WE
ALSO HAVE NICK LENINGTON AND
JACQUELINE GRUBER TO BE
AVAILABLE TO ANSWER QUESTIONS
AND HOLLY GOLDEN IS HERE IF
THERE ANY QUESTIONS FOR HER AS
WELL. I THINK LISH AND HIS MEM
TO THE COMMITTEE AS OUTLINED
WHY WE ARE HERE IN A VERY CLEAR
FASHION, WE DON'T SEE REQUESTS
FOR EXTENSIONS OFTEN. I THINK
THE REASON FOR THAT IS THAT THE
COUNCIL GENERALLY, WITH A
COUPLE NOTED EXCEPTIONS, LOOKS
AT PROJECTS THAT ARE REALLY
READY TO PROCEED. WHEN A
DEVELOPER COMES IN, THEY ARE
DOING THEIR OF OUR MENTAL WORK,
SEEKING FINANCING, WHEN THEY GE
THE VACATION, THEY ARE REALLY
READY TO PROCEED IN ALMOST ALL
INSTANCES. SOMETIMES THINGS
HAPPEN, WHETHER IT'S ON THE
BUSINESS AND OR MARKET CHANGES,
OR COVID OR OTHER THINGS. SO
EVERY ONCE IN A WHILE WE DO GET
A PROJECT THAT NEEDS AN
EXTENSION. AND, AGAIN, THIS
DOESN'T, VERY OFTEN, BUT THE
PRACTICE HAS BEEN THAT THE CITY
COUNCIL WILL REVIEW THE REQUEST
AND GRANT AN EXTENSION FOR TH
SPECIFIED PERIOD OF TIME. I
WOULD NOTE THAT IN THE MOST
RECENT POLICY PROVISIONS WE HAV
LOOKED AT THE LENGTH OF TIME
GRANTED UNDER CONCEPTUAL
APPROVAL TO MAKE SURE WE ARE
PROVIDING ADEQUATE TIME FOR
LARGE-SCALE AND COMPLEX
PROJECTS TO GET THROUGH
PERMITTING AND COMPLETE
ENVIRONMENTAL AND DESIGN WORK,
SO WE CAN LOOK AT WHETHER WE AR
GRANTING OF TIME FOR THE TYPE
OF PROJECTS THAT THE COMMITTEE
SEES. BUT THIS IS REALLY VERY
STRAIGHTFORWARD. IT DOESN'T COM
UP VERY OFTEN, BUT WE DO SEE IT
AND I THINK MURRAY, HAS SIX OR
EIGHT SLIDES. I THINK IT'S
EASIER TO LOOK AT AFTER THE
SLIDES SO YOU CAN SEE THE
ORIENTATION AND THE BLOCKS AND
THEN I THINK LISH IS THEN GOING
TO TALK THROUGH THE CONDITION
DOCUMENT AND THE NEW CLERK
FILE. BUT I THINK THAT IS IT.
SO, MURRAY, IF YOU CAN GO
THROUGH THE POWERPOINT THAT
WOULD BE GREAT.
>> INKS, BEVERLY.
>> HI, I WILL BE PROVIDING
BACKGROUND ON OUR PROJECT .
IT'S A HUGELY IMPORTANT PROJECT
FOR US AND ACCOUNTS FOR A
SIGNIFICANT PORTION OF OUR
DEVELOPMENT PIPELINE TO THE
FUTURE. I WILL START WITH A
QUICK OVERVIEW OF OUR REQUEST
AND THEN WALK YOU THROUGH SOME
HIGH-LEVEL DETAILS OF THE
PROJECT. IN LATE 2015 CITY
COUNCIL APPROVED A SUBTERRANEAN
ALLEY VACATION TO ALLOW
DEVELOPMENT. THIS PROJECT IS
ANCHORED BY A LARGE PLAZA AT
THE SOUTHWEST CORNER OF THE
PROPERTY. IN THE ALLEY VACATIO
ALLOWS US TO MAKE THE MOST OF
THIS IMPORTANT ELEMENT BY
KEEPING VEHICLES BELOW GRADE AN
PROVIDING CONNECTION ACROSS THE
BLOCK. AS A SUBTERRANEAN
VACATION THE SURFACE OF THE
ALLEY AND UTILITY CORRIDOR
REMAIN PUBLIC RIGHT-OF-WAY. AT
THE TIME OF APPROVING THE ALLEY
VACATION IT'S ANTICIPATED
CONSTRUCTION OF THE PROJECT WIL
COMMENCE WITHIN 18 MONTHS. AND
BE COMPLETED WITHIN THREE YEARS
FOR SEVERAL REASONS, INCLUDING
THE COVID RELATED MARKET,
UNCERTAINTY IN RECENT TIMES, TH
PROJECT HAS NOT COMMENCED AS
PLANNED. DESPITE THIS WE REMAIN
STRONGLY COMMITTED TO THE
PROJECT . THIS IS WHY WE ARE
REQUESTING AN EXTENSION OF THE
PREVIOUS TIMING THAT WOULD ALLO
US TO COMMENCE CONSTRUCTION BY
2027 AND COMPLETE BY 2030. WE
CONTINUE TO ACTIVELY MARKET THE
PROJECT AND WILL DO EVERYTHING
WE CAN TO COMMENCE SOONER THAN
2027. WE ARE WORKING TOWARD
RECEIVING DOCUMENTS THIS YEAR T
DO THAT. THE PROJECT AN
EXISTING CONTEXT ARE SHOWN HERE
THIS IS PLACE BETWEEN WESTLAKE
AVENUE TO THE EAST AND DENNY
PARK TO THE WEST. HERE YOU CAN
SEE THE SCALE OF THE SOUTHWEST
PUBLIC PLAZA AS WELL AS THE
LOCATION OVER 18 STORY OFFICE
BUILDING. AT THE NORTHEAST
CORNER. AND A MODEST RETAIL
PAVILION ABOVE THAT AND A 14
STORY RESIDENTIAL BUILDING AT
THE NORTHWEST CORNER. IN THIS
DIAGRAM THE EXTENSIVE PUBLIC
BENEFITS IT WILL DELIVER. THERE
WAS AN EMPHASIS ON THE PUBLIC
GROUND IN CREATING A PEDESTRIAN
EXPERIENCE ON THE SIDE. THE
AREA OF PUBLIC BENEFITS, JUST
UNDER 26,000 SQUARE FEET.
COMPARED WITH THE SUBTERRANEAN
ALLEY VACATION AREA A LITTLE
UNDER 6000 SQUARE FEET. THESE
RENDERINGS OF THE PROJECT TAKE
US TO THE END OF THE
PRESENTATION. WE REMAIN
ENTHUSIASTIC ABOUT THE PROJECT
IT GETS A LOT OF ATTENTION. WE
APPRECIATE THE TIME AND
CONSIDERATION OF OUR REQUEST.
WE WELCOME ANY QUESTIONS YOU MA
HAVE.
>> THANK YOU. COLLEAGUES, WE CA
TURN IT NOW OVER TO LISH
WHITSON, AND TALK ABOUT
CONDITIONS OF APPROVAL. I THINK
THAT WILL HELP WITH THE COMFORT
LEVEL , IF THAT WOULD BE OKAY.
WE CAN ASK QUESTIONS NOW, OR
BOTH. WHAT WE TURN OVER TO LISH
RIGHT NOW?
>> SO, I ATTACHED THE AGENDA,
AND I WILL SHARE IT. OUR
AMENDED CONDITIONS OF APPROVAL
, THEY ARE BASED ON THE
CONDITIONS THAT WERE PREVIOUSLY
GRANTED BY COUNCIL IN 2015.
THE KEY DIFFERENCE IS THAT
THESE CONDITIONS, INCLUDE A
STATEMENT THAT RATHER THAN
EXPIRING THREE YEARS AFTER
ORIGINAL APPROVAL, THEY WOULD
EXPIRE DECEMBER 7 2030 WHICH
WOULD BE 15 YEARS AFTER THE
ORIGINAL APPROVAL. AND IS
CONSISTENT WITH WHAT VULCAN HAS
REQUESTED.
>> COUNCILMEMBER MORALES?
>> THANK YOU. FIRST I WANT TO
THANK YOU FOR REMAINING
COMMITTED TO CREATING SOMETHING
HERE, GIVEN THE CHALLENGES WE
KNOW WE HAVE ALL EXPERIENCED I
THE LAST SEVERAL YEARS. AND, I
WILL ALSO ADMIT THAT I HAVE A
LOT OF QUESTIONS THAT MAY BE
BETTER ANSWERED OUT OF BRIEFING
I WILL MAKE SURE I MAKE TIME T
DO THAT. I AM VERY CURIOUS ,
GIVEN THAT THIS PROJECT WAS
ORIGINALLY ENVISIONED IN 2015,
IT WILL BE SEVERAL MORE YEARS
BEFORE YOU ACTUALLY BEGIN
CONSTRUCTION, AND IN INTERVENIN
YEARS, OUR AWARENESS OF CLIMATE
CHANGE, OUR NEED TO REDUCE
CARBON EMISSIONS, TO REDUCE
CONGESTION DOWNTOWN , HAVE
CHANGED. I'M WONDERING IF THER
IS ANY CONVERSATION HAPPENING
ABOUT ACTUALLY REDUCING THE SIZ
OF THE UNDERGROUND PARKING
FACILITY . WE HAVE LOTS OF EMPT
PARKING HERE ALREADY. AND, I
WOULD JUST LIKE TO HEAR A LITTL
BIT ABOUT WHETHER THERE ARE
OTHER THINGS BEING CONTEMPLATED
WE DON'T ENCOURAGE MORE PEOPLE
TO COME DOWNTOWN. IN CARS, I
SHOULD SAY. WE WANT LOTS OF
PEOPLE DOWNTOWN, WE WOULD JUST
LIKE THEM TO COME SOME OTHER WA
TO GET YOUR.
>> I THINK THE OFFICE BUILDING
WE ARE IN A PARKING RATIO ABOUT
1000. CERTAINLY THAT IS WHAT
THE MARKET IS REQUIRING. I
DON'T THINK THAT HAS REALLY
CHANGED. I MUST ADMIT I DON'T
HAVE THE DETAILS OF THE
RESIDENTIAL PARKING HANDY. BUT
CERTAINLY IT REQUIRES MORE
PARKING THAN [ INDISCERNIBLE ]
>> IF I MAY FOLLOW-UP,
COUNCILMEMBER MIRELES, WHAT I
HEAR YOU SAYING IS THAT THE
MARKET DEMANDS , THE MARKET
DEMAND FROM POTENTIAL OFFICE
TENANTS IS HOPING TO SEE A
CERTAIN AMOUNT OF CAR PARKING ,
IS THAT WHAT YOU MEAN BY THE
MARKET? YOUR POTENTIAL TENANT
YOU WOULD BE LEASING TO?
>> THAT IS RIGHT. WE HAVEN'T
SEEN A CHAIN CHANGE IN DEMAND
FROM PARKING FOR OFFICE
TENANTS. ONE PER THOUSAND , THA
IS WHAT WE HAVE IN THE CURRENT
DESIGN.
>> OKAY. DO YOU HAVE
ACCOMMODATIONS FOR ELECTRIC
VEHICLES, WE HAVE CHARGING
STATIONS?
>> WE TYPICALLY DO A BALANCE OF
HAVING EV READY STALLS. WE
HAVE THE HIDDEN INFRASTRUCTURE
READY TO ADD ELECTRIC VEHICLES.
BUT DEFINITELY PUT SOME
ELECTRIC VEHICLES AS PART OF TH
HOLDING AND THEN DEPENDING ON
THE TENANT DEMAND WE HAVE THE
ABILITY WITH THE INFRASTRUCTURE
TO ADD ON RELATIVELY EASILY.
>> THANK YOU. GO AHEAD,
COUNCILMEMBER MORALES, ANYTHING
ELSE?
>> NO, I THINK WHAT YOU'RE
SAYING IS, NO, THERE HASN'T
BEEN CONVERSATION ABOUT
CHANGING THE RATIO. I WILL SAY
WE HAVE , I DON'T HAVE THE
DETAILS, BUT I KNOW WE HAVE LOT
OF PARKING THAT GOES UNUSED
DOWNTOWN EVERY DAY, EVEN BEFORE
COVID. SO, YOU KNOW, IT'S JUST
QUESTION AND MAYBE A REQUEST
FOR CONSIDERATION BEFORE WE
ACTUALLY GET STARTED. THANK YOU
THANK YOU FOR BEING HERE.
>> THANK YOU, COUNCILMEMBER
MORALES. IN TERMS OF THE RATIO
OF PARKING , I MEAN, I AM
SURPRISED THERE WOULD BE OFFIC
SPACE THAT YOU WOULD BE
BUILDING, ESPECIALLY WHEN
THERE'S A VACANCY RIGHT NOW. BU
I KNOW THESE THINGS COME IN
CYCLES AND IT'S REALLY HARD TO
PLAN SO FAR IN ADVANCE. BUT, I
AM THINKING THAT THROUGH THE
LAND-USE COMMITTEE, WE CAN
PROBABLY LOOK AT THOSE PARKING
REQUIREMENTS , RATHER THAN
THROUGH A TERM PERMIT EXTENSION
AND SINCE , SINCE IT IS JUST A
SUBTERRANEAN ALLEY, I THINK IT
WAS JUST TOO HARD TO LOOK AT
THIS PROJECT AND TRY TO
MICROMANAGE IT, EVEN THOUGH I
WAS TEMPTED LOOKING AT IT, WAIT
WHY ARE THEY DOING THIS OR THAT
AND THEN REALIZING, THIS IS AN
EXTENSION OF SOMETHING ALREADY
APPROVED IN JUST A SUBTERRANEAN
BUT IT DOES BEG THE QUESTION,
WHAT SHOULD WE BE DOING BIG
PICTURE WITH ALL OF THESE NEW
BUILDINGS DOWNTOWN , MAKING SUR
WE ARE LOOKING AT THE FUTURE OF
REDUCING SINGLE OCCUPANCY
VEHICLE USE. MAKING SURE THERE
ARE SUFFICIENT BIKE PARKING
PLACES FOR EXAMPLE AN ELECTRIC
CHARGING STATIONS. I WOULD BE
INTERESTED IN JOINING THE
DISCUSSION ON THE BIGGER
PICTURE WITH CONFERENCE OF
PLANNING PROCESS IS PROBABLY A
GOOD PLACE TO REALLY TACKLE IT,
LARGE-SCALE. COLLEAGUES, ANY
OTHER COMMENTS OR QUESTIONS?
LISH, ANYTHING?
>> I WOULD JUST NOTE THAT IN
THE SOUTHLAKE UNION CENTER WE
DO NOT REQUIRE PARKING FOR
EITHER OFFICE OR RESIDENTIAL
USES SO THIS IS A VOLUNTARY
DECISION BY THE DEVELOPER TO
INCLUDE THIS LEVEL OF PARKING.
>> THANK YOU. ALL RIGHT,
COLLEAGUES, LET'S DO SOME POOR
ELEMENTARY PROCEDURE, I'M GOING
TO PUT THE CLERK FILE IN FRONT
OF US AND THEN WE ARE GOING TO
AMENDED WITH CONDITIONS AND THE
WE WILL GO AHEAD AND CONSIDER
APPROVAL OF THAT AMENDED CLERK
FILE. COUNCIL MEMBERS, TO PUT
THE ITEM BEFORE US FOR
AMENDMENT, I MOVE THE COMMITTEE
COMMAND APPROVAL OF CLERK FILE
314517. IS VERY SECOND?
>> SECOND.
>> THANK YOU. SO, WE HAVE
ALREADY GONE TO THE CONDITIONS
OF APPROVAL. SO WE WILL GO AHEA
, I WILL GO AHEAD AND MOVE --
COLLEAGUES, I'D LIKE TO MOVE TH
WE HAD THE CONDITIONS OF
APPROVAL AS OUTLINED IN THE
MEMO. IS THERE A SECOND FOR
THAT?
>> SECOND.
>> THANK YOU. IS BEEN MOVED AND
SECONDED TO AMEND THE CLERK FIL
314517 BY ADDING THE CONDITIONS
OF APPROVAL. LET'S GO AHEAD AND
VOTE ON THAT TO ADD THOSE
CONDITIONS. WILL THE CLERK
PLEASE CALL THE ROLL ON THE
RECOMMENDATION TO AMEND CLERK
FILE 314517 BY ADDING ATTACHMEN
ONE, WITH THE CONDITIONS TO THE
CLERK FILE?
>>
>> COUNCILMEMBER HERBOLD .
>> YES.
>> COUNCILMEMBER MORALES.
>> YES.
>> COUNCILMEMBER SAWANT.
>> YES.
>> CHAIR PEDERSEN.
>> YES. FOUR IN FAVOR AND THEN
OPPOSED.
>> MOTION CARRIES IN ITS AMENDE
APPROVAL. ANY FINAL QUESTIONS O
THE AMENDED CLERK FILE BEFORE I
MOVE TO VOTE ON THE AMENDED
CLERK FILE? ALL RIGHT. I MOV
THAT THE COMMITTEE APPROVED
CLERK FILE 314517 AS
CONDITIONED. IS THERE A SECOND?
>> SECOND.
>> THANK YOU. IT IS BEEN MOVED
AND SECONDED TO APPROVE THE
CLERK FILE AS AMENDED. WITH THE
CONDITIONS. WILL THE CLERK
PLEASE CALL THE ROLE ON THE
COMMITTEE RECOMMENDATION TO
APPROVE CLERK FILE 314517 AS
CONDITIONED?
>> COUNCILMEMBER HERBOLD .
>> YES.
>> COUNCILMEMBER MORALES.
>> YES.
>> COUNCILMEMBER SAWANT.
>> YES.
>> CHAIR PEDERSEN.
>> YES.
>> FOUR IN FAVOR AND NONE
OPPOSED.
>> THE MOTION CARRIES AND IT
WILL BE SENT TO THE MAIN NINTH
CITY COUNCIL MEETING. ALL
RIGHT, COLLEAGUES, AND I
APPRECIATE THAT. NOW WE GO ON
TO THE BRIEFING AND DISCUSSION.
>> THANK YOU.
>> WE WILL NOW GO AHEAD TO OUR
FOURTH AND FINAL ITEM ON THE
AGENDA. WILL THE CLERK PLEASE
READ THE FULL TITLE OF THAT
FOURTH AND FINAL ITEM?
>> SEATTLE PUBLIC UTILITIES
2022 AUDIT REPORT FOR BRIEFING
AND DISCUSSION.
>> THANK YOU. WITH US TODAY WE
HAVE THE INDEPENDENT ACCOUNTING
FIRM MOSS ADAMS RESPONSIBLE FOR
THE ANNUAL FINANCIAL AUDIT OF
SEATTLE PUBLIC UTILITIES AND
TODAY TO WALK US THROUGH THE
2022 FINANCIAL AUDIT. FOR SPU.
WE ALSO HAVE OUR CITY COUNCIL
CENTRAL STAFF, BRIAN. DID YOU
HAVE ANY OPENING REMARKS BEFORE
WE TURN OVER TO MOSS ADAMS?
>> JUST TO SAY THAT IT IS
REQUIRED THAT SPU HAVE AN
EXTERNAL AUDIT OF ALL THREE OF
ITS ENTERPRISE FUNDS EVERY YEAR
AND MOSS ADAMS HAS BEEN THE
FIRM THAT DOES THAT, THEY
TYPICALLY COME IN TWICE PER
YEAR, THE END OF THE YEAR ABOUT
DECEMBER TO PROVIDE THE AUDIT
PLAN AND THEN THEY COME IN ABOU
THIS TIME OF YEAR IN APRIL OR
MAY TO PROVIDE RESULTS. THAT IS
ALL. THANK YOU.
>> THANK YOU FOR THAT CONTEXT.
WANT TO SAY WHAT THE AUDIT
RESULTS ARE, BUT I KNOW I HAVE
TO KEEP YOU HERE, I CAN'T SPOIL
THAT. SO WE WILL GO AHEAD AND
HEAR FROM MOSS ADAMS. GOOD
MORNING.
>> GOOD MORNING. THANK YOU. MY
NAME IS LAURIE TISH, I AM HERE
WITH MY COLLEAGUE, NICOLE JANES
WHO IS THE MANAGER FOR ALL OF
OUR AUDITS. THIS YEAR. AND, I
WON'T SPOIL THE SURPRISE,
NICOLE IS GOING TO GIVE YOU THE
SUMMARY OF OUR AUDIT SCOPE AND
THE REPORTS. BUT I CAN TELL YOU
IT IS ALL GOOD NEWS FOR SEATTLE
PUBLIC UTILITIES TODAY AS A
RESULT OF OUR AUDIT. NICOLE, IF
YOU WANT TO KICK US OFF WITH TH
SCOPE AND I WILL COME BACK
AFTER SHE IS DONE AND GO THROUG
THE REQUIRED INDICATIONS
REQUIRED OF US I GENERALLY
ACCEPTED AUDITING STANDARDS. GO
AHEAD, NICOLE.
>> YES, THANK YOU. THANK YOU
FOR HAVING US. IT'S A PLEASURE
TO CONTINUE TO SERVE AS AUDITOR
FOR SEATTLE PUBLIC UTILITIES. A
PART OF OUR 2022 AUDIT, WE
PERFORMED SEPARATE FINANCIAL
STATEMENT AUDITS FOR EACH OF TH
THREE UTILITIES SEATTLE PUBLIC
UTILITIES, THE WATER FUND, THE
DRAINAGE RELEASE WATER FUND AND
SOLID WASTE FUND. MANAGEMENT
CONTINUES TO REMAIN RESPONSIBLE
FOR THE PREPARATION AND
PRESENTATION OF THE FINANCIAL
STATEMENTS. WE ARE RESPONSIBLE
TO EXPRESS AN OPINION ON THOSE
FINANCIAL STATEMENTS, THAT THEY
HAVE BEEN PRESENTED FAIRLY AND
IN CONFORMITY WITH GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES.
ALSO AS PART OF HER AUDIT WE
ARE TESTING CERTAIN SYSTEMS
WITHIN THE STRUCTURE OF INTERNA
CONTROLS FOR SPU AROUND THE
FINANCIAL REPORTING PROCESSES
AS WELL AS VERIFYING THAT
COVERAGE AND DEBT COVENANT
COMPLIANCE. THERE ARE SEVERAL
PURPOSES FOR THE AUDITS WE ARE
PERFORMING. OUR AUDITS AT
SEATTLE PUBLIC UTILITIES,
USUALLY RELIED UPON BY THE STAT
AUDITORS AND THEIR AUDIT OF THE
CITY AS A FINANCIAL STATEMENTS
OF SPU ARE ROLLED UP INTO THE
CONFERENCE A FINANCIAL REPORT
FOR THE CITY OF SEATTLE. SO
THERE AREN'T ANY DUPLICATION
EFFORTS BETWEEN OURSELVES AND
THE STATE AUDITORS. THE AUDIT
REPORTS ARE USED IN THE
OFFICIAL STATEMENTS FOR BOND
ISSUANCES AND VARIOUS OTHER
REASONS FOR STAKEHOLDERS OF
UTILITIES. SO FOR OUR 2022
AUDIT, WE HAVE ISSUED REPORTS
LAST WEEK AND THESE RESULTED IN
UNMODIFIED OPINIONS FOR ALL
THREE SETS OF STATEMENTS. THIS
MEANS THAT OUR OPINION IS THEY
HAVE BEEN PRESENTED FAIRLY IN
ACCORDANCE WITH GOVERNMENTAL
ACCOUNTING RECORDS. WE HAD NO
MODIFICATIONS OR QUALIFICATIONS
TO THAT OPINION, IT WAS A CLEAN
AUDIT FOR THE UTILITIES. ONE
ITEM , YOU WILL SEE IN THE
REPORTS THIS YEAR, IS AN
EMPHASIS OF MATTER WHICH WAS FO
THE IMPLANTATION OF THE LEASING
STANDARD WHICH WENT INTO EFFECT
FOR THE UTILITIES THIS YEAR.
THIS IS BEEN CALLED OUT IN A
REPORT , IT IS CHANGED SOME
PRESENTATION ON THE STATEMENT O
POSITION AND HOW TO -- RELATED
IMPACT AND RESTATEMENT OF 2021
NUMBERS AS WELL RELATED TO THE
IMPLANTATION OF THE STANDARD
FOR BOTH 2022 AND 2021
FINANCIALS. THESE REPORTS WERE
DATED AS OF THE END OF LAST
WEEK. WE ALSO HAVE ISSUED A
REPORT ON INTERNAL CONTROL AN
COMPLIANCE OVER FINANCIAL
REPORTING IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS.
AGAIN, A CLEAN OPINION. WE DID
NOT NOTE ANY MATERIAL IN
INTERNAL CONTROLS AS RESULT OF
OUR AUDITS. THERE WERE NO
SIGNIFICANT DEFICIENCIES IN
CONTROLS REPORTED. IN BOTH OF
THESE REPORTS, DATED ON THE SAM
DAY. THE NEXT SLIDE WE OUTLINE
OUR RESPONSIBILITY UNDER OUR
AUDITING STANDARDS ELATED TO
THESE AUDITS. OUR
RESPONSIBILITY IS TO EXPRESS OU
OPINION THAT THE FINANCIAL
STATEMENTS PREPARED BY
MANAGEMENT WITH YOUR OVERSIGHT
ARE FAIRLY PRESENTED AND ALL
MATERIAL RESPECTS AND CONFORMS
TO U.S. GAP. I WANT TO MENTION
THIS DOES NOT RELIEVE YOU OF
RESPONSIBILITIES RELATED TO THE
FINANCIAL STATEMENTS. WE
PERFORMED THE AUDIT IN
ACCORDANCE WITH GENERALLY
ACCEPTED AUDITING STANDARDS
ISSUED BY THE AICPA AS WELL AS
THE COMPTROLLER OF THE U.S. WE
DESIGNED THE AUDIT TO CONTAIN
BRIEF RATHER THAN FINANCIAL
SERVANTS . WITH HER AUDIT WE
ARE CONSIDERING INTERNAL CONTRO
OVER FINANCIAL REPORTING AS A
BASIS FOR DESIGNING OUR AUDIT
PROCEDURES., THIS IS NOT FOR TH
PURPOSES OF EXPRESSING AN
OPINION ON THE OPERATING
EFFECTIVENESS OR PROVIDING ANY
ASSURANCE RELATED TO THOSE
INTERNAL CONTROLS. AND LASTLY,
WE ARE RESPONSIBLE TO
COMMUNICATE ANY FINDINGS TO YOU
THAT WE BELIEVE ARE RELEVANT TO
YOUR RESPONSIBILITIES AND YOUR
OVERSIGHT OF FINANCIAL REPORTIN
FOR SEATTLE PUBLIC UTILITIES.
BUT AGAIN, THE PURPOSE OF OUR
AUDIT IS NOT TO DESIGN
PROCEDURES FOR THAT PURPOSE.
NEXT RUNNING THROUGH HIGH-LEVE
OVERVIEW OF HER VARIOUS AUDIT
EMPHASIS. AREAS WE'RE LOOKING
AT SPECIFICALLY AS WE ARE GOIN
THROUGH OUR AUDIT. SOME OF THES
INCLUDE THE EARNINGS AND
CLASSIFICATION FOR CASH AND
INVESTMENTS. UTILITY PLANT AND
RELATED ACCOUNTS , PARTICULARLY
THE WORK ORDER CYCLE AND ONGOIN
CAPITAL PROJECTS AND ACCOUNTING
FOR THOSE. THE RIGHT TO USE
ASSETS WHICH IS THE NEW RESULT
OF THE STANDARD THIS YEAR WHICH
WAS IN BOTH AN ASSET AND
RELIABILITY ON THE STATEMENT O
THAT POSITION. WE PERFORM
TESTING OVER ACCOUNTS AND OTHER
RECEIVABLES. AND PERFORM
EXTENSIVE PROCEDURES OVER BONDS
AND RELATED ACCOUNTS. INCLUDING
ISSUANCE OF REPAYMENTS,
INTEREST EXPENSE, AND COVENANT
COMPLIANCE AND LOOKING AT
POTENTIAL ARBITRAGE LIABILITY.
YOUR TESTING REGULATORY ASSETS
AND LIABILITIES AND CREDITS IN
DIFFERENT ACCOUNTS. AND LOOKING
AT INTERNAL CONTROLS RELATED TO
ALL OF THESE DIFFERENT AREAS A
SORT OF THE INFRASTRUCTURE
UNDERLYING ALL OF THESE
ACCOUNTS. THIS CONTINUES HERE
ON SOME OTHER AREAS OF AUDIT
EMPHASIS. ACCRUED LIABILITIES,
ESPECIALLY THE ENVIRONMENTAL
REMEDIATION LIABILITY. AND ANY
POLLUTION REMEDIATION
OBLIGATIONS AND CLOSURE AND
POSTCLOSURE CARE. OPERATING
EXPENSES AND REVENUES FOR
RETAIL AND WHOLESALE SALES AND
THE VARIOUS REVENUE STREAMS FO
UTILITIES. AND LOOKING AT
CAPITAL AND OPERATING
CONTRIBUTIONS AND GRANTS
RECEIVED BY THE UTILITIES. WE
PERFORM PROCEDURES LOOKING AT
THE CLASSIFICATION WITH THE NET
POSITION , UNRESTRICTED,
RESTRICTED OR INVESTING IN
CAPITAL ASSETS. AND AGAIN,
BONDS, IN LOOKING AT THE
MANAGEMENT DISCUSSION AND
ANALYSIS AND VARIOUS DISCLOSURE
INCLUDED IN THOSE FINANCIAL
STATEMENTS .
>> BEFORE WE MOVE TO THE
MATTERS WE ARE REQUIRED TO BRIN
UP TO YOU IN THIS MEETING, I DO
WANT TO PAUSE TO SEE IF THERE
ANY QUESTIONS RELATED TO THE
SCOPE OF OUR AUDIT OR THE AREAS
THAT NICOLE DISCOVERED.
>> THANK YOU FOR HAVING THAT
BREAK. YOU GOING TO TALK ABOUT
THE NEW LEASING STANDARD AND
WHAT THAT MEANS?
>> YES, I WILL BE COVERING THAT
IN A MOMENT.
>> CONTINUE.
>> AGAIN WE WILL POSIT THE END
FOR ANY QUESTIONS. IF YOU COME
UP WITH ANYMORE WE ARE HAPPY TO
COVER THOSE. I AM REQUIRED TO G
THROUGH A SERIES OF REQUIRED
DISCLOSURES OR COMMENTS BACK TO
YOU. THE FIRST ONE RELATES TO
SIGNIFICANT ACCOUNTING
PRACTICES. IN YOUR NOTE TO YOU
THREE SETS OF FINANCIAL
STATEMENTS, THERE IS A LOT OF
DETAIL IN THERE ABOUT THE
SIGNIFICANT ACCOUNTING POLICIES
PRACTICES AND ACCOUNTING
ESTIMATES, THAT SORT OF THING,
THERE WEREN'T ANY CHANGES TO
THAT OTHER THAN SOME DISCLOSURE
ABOUT RELEASING POLICIES. THOS
RIGHT TO USE ASSETS ON THE BOOK
OF EACH UTILITY. OTHER THAN THA
THERE WERE NO CHANGES IN THE
POLICIES DISCUSSED. WE HAD NO
DIFFICULTIES ENCOUNTERED
PERFORMING OUR AUDIT AND WE HAD
NO DISAGREEMENTS WITH
MANAGEMENT. AND THIS IS FAIRLY
RARE, BUT WE HAD NO PROPOSED
JOURNAL ENTRIES. THERE WERE NO
ERRORS OR MISSTATEMENTS IN THE
FINANCIAL STATEMENTS. THE DRAFT
THAT WE WERE PROVIDED THROUGHOU
HER AUDIT WERE THE ONES THAT
WERE PUBLISHED. SO WE DIDN'T
HAVE ANY ADJUSTMENTS THAT WERE
LARGE ENOUGH TO POST. AND WE
DIDN'T HAVE ANY THAT WERE LARGE
ENOUGH TO INFORM YOU ABOUT THAT
WERE PASSED UPON. NO PROPOSED
AND NO PAST BOOKED ADJUSTMENTS
AS RESULT FOR AUDIT THIS YEAR.
AT THE END OF THE AUDIT WE DO
OBTAIN WHAT WE CALL A
REPRESENTATION LETTER FROM
MANAGEMENT. THAT IS SIGNED BY
NOT ONLY THE SENIOR LEVEL
EXECUTIVES FOR THE UTILITIES BU
ALSO THE ACCOUNTING MANAGER
THAT WE DO HAVE A LOT OF
CONVERSATIONS WITH ABOUT THINGS
LIKE MANAGEMENT ESTIMATES AND
SOME OF THE THINGS QUESTIONS
THAT COME UP IN FINANCIAL
STATEMENTS. WE HAVE OBTAINED
THAT. WE DID OBTAIN THAT ON THE
SAME DAY WE ISSUE THE FINANCIAL
STATEMENT. AND NOW TO TALK A
LITTLE MORE ABOUT THAT LEASING
STANDARD THAT NICOLE BROUGHT UP
YOU MIGHT REMEMBER WE HAVE BEEN
TALKING ABOUT THIS WITH YOU FO
A COUPLE OF YEARS, IT FINALLY
WAS IMPLEMENTED THIS YEAR. A
VERY HEAVY LIFT ON THE PART OF
MANAGEMENT TO GO THROUGH. IT
REALLY REQUIRED MANAGEMENT OF
THE UTILITIES TO GO THROUGH AND
INVENTORY ALL OF YOUR
ARRANGEMENTS THAT POTENTIALLY
COULD REPRESENT A LEASE. NOW I
THE PAST, MOST OF THE LEASES
ENTERED INTO BY THE UTILITIES
WOULD'VE BEEN TREATED ON THE
INCOME STATEMENT. SO JUST
EXPENSED AS THESE COSTS CAME
THROUGH. AND LIKE WAS ON THE
OTHER SIDE, JUST RECOGNIZING
REVENUE AS IT CAME IN. WHAT TH
LEASING STANDARD DID WAS
ACTUALLY LOOK AT IT MORE AS ,
THOSE ARE ASSETS THAT ARE BEIN
USED , A RIGHT TO USE THAT
ASSET, BY THE UTILITY. SO,
ALONG WITH HER TWIN, FINANCIAL
ACCOUNTING STANDARDS BOARD,
BOTH OF THOSE SETS OF GOVERNING
BODIES FOR ACCOUNTING STANDARD
DECIDED, DO YOU KNOW WHAT, THAT
REALLY IS AN ASSET AND SHOULD
BE TREATED LIKE THAT IN THE
FINANCIAL STATEMENTS. IF YOU AR
IN THERE WITH A LONG-TERM LEASE
THERE IS REALLY NOT A BIG
DIFFERENCE BETWEEN THAT AND THE
ASSETS YOU OWN. AND LIKEWISE TH
OTHER WAY AROUND. IF YOU ARE TH
LESSOR AND YOU ARE LEASING
SOMETHING OUT, THAT OTHER ENTIT
IS REALLY THE ONE USING IT AND
SO YOU SHOULD REALLY SHOW THOSE
AMOUNTS ON YOUR BALANCE SHEET.
IT REALLY TAKES WHAT USED TO BE
JUST AN INCOME STATEMENT
TRANSACTION RECOGNIZED IN THAT
PERIOD, AND PARKED THOSE DOLLAR
AMOUNTS PERMANENTLY ON THE
BALANCE SHEET, AND THEN IT WOUL
ROLL OUT AS THE LEASE TERM
GOES. SO, YOU ARE STILL GETTING
THAT RECOGNITION IN YOUR INCOME
STATEMENT ON A YEARLY BASIS, BU
YOU ARE ALSO SHOWING ON YOUR
BALANCE SHEET THAT LONG-TERM
IMPACT OF ESSENTIALLY THE RIGHT
TO USE THAT ASSET FOR THAT
LONG-TERM DEFERRED INFLOW IF
YOU ARE ON THE LESSOR SIDE. IT
JUST REALLY TAKES IT AND PUTS
LARGER AMOUNTS ON YOUR BALANCE
SHEET ROLLING OUT OVER TIME
UNTIL THAT LEASE TERM IS OVER
AND THEN IT IS OF COURSE ZEROED
OUT ON THE BALANCE SHEET. SO,
THAT WAS DONE. I WOULD SAY THE
HEAVY LIFTING PART COMES IN IN
THAT FIRST YEAR OF
IMPLEMENTATION. BECAUSE,
MANAGEMENT HAD TO GO THROUGH
EVERY SINGLE ARRANGEMENT,
WHETHER THEY WERE THE LESSEE OR
LESSOR , DECIDE IF IT WAS SCOPE
IN OR NOT, THERE WERE A LOT OF
RULES AROUND THAT, FOR EXAMPLE
IF IT WAS A SHORT-TERM LEASE
BELOW 12 MONTHS, IT CAN BE RULE
OUT. IF IT IS IN MATERIAL SUCH
AS SOME COPIER LEASES, THAT CAN
BE SCOPED OUT. IT WAS A HUGE
EFFORT TO GO THROUGH AND DECIDE
WHAT IS A LEASE? WHEN YOU LEAS
LAND THAT SPU OWNS TO A CELL
TOWER, IS THAT A LEASE? OR NOT?
AND SO THERE WAS A LOT GOING
INTO THAT, WEATHER PERMITS AND
SUCH ARRANGEMENTS LIKE THAT MET
THE CRITERIA TO BE A LEASE. SO
THEY GOT THROUGH THAT AND GOT
TO THE NUMBERS THAT WERE
INVOLVED IN EACH MONTH. THE
OTHER UNIQUE THING ABOUT THE
STANDARD WAS IT DID REQUIRE TH
ENTITIES TO GO BACK AND RESTATE
LAST YEAR. SO IT WAS APPLIED AS
IF IT HAD BEEN IN PLACE SINCE
JANUARY 1, 2021. SO LAST YEAR'
FINANCIAL STATEMENTS WERE
CHANGED. THEY ARE NOTED IN THE
FINANCIAL STATEMENTS IN A
COLUMN THAT SAYS AS RESTATED.
IN NOTE ONE, THERE IS A
DISCUSSION ABOUT EVERY DOLLAR
METHOD CHANGED FROM LAST YEAR
AND HOW YOU CAN TRACE THAT BACK
AND THEN IN NOTE 5, TO THE
FINANCIAL STATEMENTS, IT SHOWS
THE AMOUNT OF THE LEASES THAT
ARE NOW CONSIDERED CAPITAL
ASSETS RIGHT TO USE ASSETS. SO
GOING FORWARD THIS WILL BE
ROUTINE, YOU WILL GET USED TO
IT. BUT IT WAS A PRETTY BIG
EFFORT ON THE PART OF
MANAGEMENT TO GET ALL OF THIS
SORTED OUT, FOR NOT ONLY THE
2022 FINANCIAL STATEMENTS, BUT
ALSO TO GO BACK AND RESTATE 202
FINANCIAL STATEMENTS. WE OF
COURSE WERE RIGHT BEHIND
MANAGEMENT ALL ALONG AUDITING
THEIR ASSUMPTIONS. MAKING SURE
WE AGREED WITH THE BUCKETS THE
WERE BEING PUT INTO AS FAR AS
WHETHER IT MET THE SCOPE OF THE
LEASE OR DID NOT MEET THE SCOPE
OF THE LEASE. AND WE FEEL VERY
COMFORTABLE THAT THOSE ARE NOW
PROPERLY STATED IN YOUR
FINANCIAL STATEMENTS FOR THE
YEAR.
>> THANK YOU FOR EXPLAINING
THAT, SINCE YOU DO HIGHLIGHTED
AT THE BEGINNING OF YOUR REPORT
IT IS A LITTLE COUNTERINTUITIVE
THAT, IF YOU ARE SIGNING A LEAS
AS THE RENTER, THAT NOW IT IS
BOOKED AS AN ASSET . SO, THE
WIZARDRY OF GASB ACCOUNTANTS,
I GUESS. BUT, THANK YOU FOR
WALKING US THROUGH THAT. YOU
SAID THOUGH, IT WILL SHOW UP AS
EXPENSES ON THE INCOME STATEMEN
WHEN THE RENT IS BEING PAID. I
AM THINKING THAT SEATTLE PUBLIC
UTILITIES RENTS A LOT FROM OUR
OWN FINANCIAL AND ADMINISTERED
IF SERVICES DEPARTMENT.
>> GOOD QUESTION.
>> NO, THOSE ARE ACTUALLY SCOPE
OUT. WHEN THERE ARE
RELATIONSHIPS BETWEEN AND
ENTERPRISE FUND COMPONENT UNIT
OF THE GOVERNMENT TO ITS PARENT
GOVERNMENT, THOSE TRANSACTIONS
ACTUALLY ARE SCOPED OUT AND ARE
NOT INCLUDED. THOSE TRANSACTION
WOULD STILL BE TREATED THE SAME
WAY AS I HAVE IN THE PAST.
>> OKAY. THANK YOU. COLLEAGUES,
ANY QUESTIONS AT THIS POINT
OTHERWISE WE CAN KEEP GOING.
OKAY, LET'S KEEP GOING.
>> OKAY, LASTLY, WE ARE NOT
AWARE OF HAVING ANY
CONSULTATION WITH ANY OTHER
ACCOUNTANTS. THE ONE IN THE
MIDDLE, POTENTIAL EFFECT OF ANY
SIGNIFICANT RISKS OF EXPOSURES,
THIS IS REALLY JUST TO LET YOU
KNOW THIS IS CONSIDERED AS PART
OF HER AUDIT AND CERTAINLY WE
DO OBTAIN ATTORNEY LETTERS, WE
DO SPEND SOME TIME WITH THE
CITY ATTORNEY TRYING TO
UNDERSTAND ANY CLAIMS OR
POTENTIAL LITIGATION AGAINST TH
UTILITIES AND THEN WE ALSO TRAC
ANY CASES THAT ARE IN PLAY,
ANY CLAIMS IN PLAY. THOSE DO GE
POSTED INTO THE FOOTNOTES OF
EACH SET OF FINANCIAL
STATEMENTS. THAT AGAIN IS AN
INTEGRAL PART OF HER AUDIT. AN
THEN LASTLY, INDEPENDENCE, MOSS
ADAMS IS INDEPENDENT WITH
RESPECT TO NOT ONLY SEATTLE
PUBLIC UTILITIES, BUT ALSO THE
CITY OF SEATTLE. SO WHAT THAT
MEANS IS WE ARE NOT ALLOWED , W
BEING ALL OF OUR EMPLOYEES, OF
OUR FIRM, ARE NOT ALLOWED TO
HOLD , BE A BONDHOLDER FOR SPU
OR THE CITY. WE ALSO MAKE SURE
EVERYONE ANSWERS QUESTIONNAIRES
AS FAR AS HAVING ANY CLOSE
RELATIVES THAT WOULD
POTENTIALLY BE EMPLOYED BY SPU
OR THE CITY . WE DO A LOT OF
PROCEDURES ON OUR SIDE TO ENSUR
THAT WE TRULY ARE INDEPENDENT
WITH RESPECT TO SPU AND TO THE
CITY. AND FINALLY, I JUST WANT
TO AGAIN MENTION HOW HARD THE
SPU MANAGEMENT AND STAFF HAD TO
WORK THIS YEAR. THE LEASING
STANDARD WAS A BIG LIFT. BUT OF
COURSE, EVERY AUDIT IS
INTRUSIVE. WE ASK A LOT OF
QUESTIONS. WE REQUIRE A LOT OF
DOCUMENTS. WE START OUR WORK IN
THE FALL, SO IT'S REALLY KIND O
A SIX MONTH EFFORT WHERE WE DO
LOT OF OUR INTERNAL CONTROL
TESTING AND PRELIMINARY TESTING
AND PLANNING IN THE FALL. AND
THEN WE COME BACK IN MARCH, FOR
ABOUT FOUR WEEKS, WE ARE QUITE
INTRUSIVE WITH MANAGEMENT AND
STAFF IN GETTING WHAT WE NEED.
THINK ONE THING THAT WORKS
REALLY WELL FOR US IS WE DO HAV
A LOT OF REGULAR COMMUNICATION
REALLY DAILY, WITH A LOT OF THE
PEOPLE. WE HAVE FORMAL STATUS
MEETINGS ONCE PER WEEK WITH OUR
ENTIRE TEAMS ON BOTH SIDES. AND
JUST MAKE SURE WE ARE ALL IN
AGREEMENT WITH WHAT IS OPEN,
WHAT IS LEFT TO DO, THE
PROGRESS. SO THAT HAS WORKED
REALLY WELL FOR US. I DID ALSO
WANT TO COMMENT THAT, IT'S FUNN
TO SAY THIS, BUT I ALMOST FEEL
LIKE WE ARE WELCOME WITH OPEN
ARMS WITH EVERYBODY WE DEAL
WITH THROUGHOUT THE UTILITY. AN
WE VENTURE OUT FROM THE FINANCE
AND ACCOUNTING DEPARTMENT, WE
TALKED TO PROJECT MANAGERS, WE
TALKED TO FOLKS IN THE REVENUE
AREAS, ALL THROUGHOUT THE
UTILITY AND EVERYONE ANSWERS HE
QUESTIONS AND IS VERY HELPFUL.
WE DO OBSERVE A VERY STRONG TON
AT THE TOP WHERE I THINK THAT
TRICKLES DOWN TO ALL THE
EMPLOYEES, WHERE THEY SEE, THIS
IS IMPORTANT TO BE TRANSPARENT.
THIS IS IMPORTANT TO HAVE
ACCOUNTABILITY IN THESE AUDITS.
I JUST WANT TO REASSURE THE
COUNCIL COMMITTEE THAT WE
CERTAINLY GET A LOT OF GREAT
COOPERATION THROUGHOUT THE
ENTIRE UTILITY AND THAT IS AT
THE TOP IS VERY STRONG. I DO
WANT TO THANK THE COMMITTEE
BECAUSE I THINK YOU SAID THAT
TONE IS WELL WITH RESPECT TO
YOUR WILLINGNESS TO HOST US
TWICE PER YEAR AND LISTEN TO TH
DISCUSSIONS , SOME OF YOU WE
ACTUALLY INTERVIEW THROUGHOUT
THE YEAR AND GET YOUR INPUT ON
WHAT THE RISK AREAS ARE. SO WE
APPRECIATE THAT AS WELL. AGAIN,
THANK YOU SO MUCH TO SPU
MANAGEMENT AND STAFF FOR MAKING
THE AUDIT SUCCESSFUL THIS YEAR
AND IT WENT VERY SMOOTHLY AND O
TIME.
>> THANK YOU VERY MUCH. I THANK
YOU FOR YOUR IN-DEPTH FINANCIAL
AUDIT AND ALSO CONGRATULATIONS
TO SEATTLE PUBLIC UTILITIES, NO
ONLY THE MANAGEMENT AND CHIEF
FINANCIAL OFFICER REALM OF
SPU, BUT ALSO EVERYBODY DOWN I
THE DEPARTMENT WHO IS ENTERING
ALL OF THE FINANCIAL INFORMATIO
THAT ROLLS UP TO THE BALANCE
SHEET AND INCOME STATEMENT AND
CASH FLOWS OF THIS AUDIT.
REALLY APPRECIATE THAT, SEATTLE
IS VERY BLESSED TO HAVE NOT ONL
OUR OWN SOURCE OF FRESHWATER AN
A UTILITY THAT DISPENSES WITH
ALL THE SOLID WASTE IN THE CITY
BUT THE FACT THAT THEY ARE
DELIVERING CLEAN AUDITS OR
PRODUCING CLEAN AUDITS IS GREAT
I KNOW IT IS SIMILAR AT SEATTL
CITY LIGHT AS WELL. THANK YOU T
THE TEAM AT MOSS ADAMS.
COLLEAGUES, ANY COMMENTS OR
QUESTIONS ABOUT THIS AN ANNUAL
-- ANNUAL FINANCIAL AUDIT OF
PUBLIC UTILITIES? GREAT.
THANKS TO THE AUDITORS, THANKS
TO CITY COUNCIL CENTRAL STAFF
ARE LOOKING AT THIS AS WELL. WE
WILL GO AHEAD AND CONCLUDE THE
MEETING. THIS WAS A BRIEFING
AND DISCUSSION ITEM. WE CAN GO
AHEAD AND CONCLUDE THIS MEETING
IT IS 10:30 AM ON MAY 2, 2023.
WE ARE CONCLUDING OUR MEETING O
THE TRANSPORTATION SEATTLE
PUBLIC UTILITIES COMMITTEE. THE
NEXT MEETING OF THIS COMMITTEE
WILL BE ON THE 16th, TWO
TUESDAYS FROM NOW. THANK YOU. W
ARE ADJOURNED.