Commission Meeting Portal

Regular Meeting on Jun 23, 2009 1:00PM

Minutes for the Port Of Seattle Commission meeting, held on Jun 23, 2009 1:00PM

        Commissioners                                               Tay Yoshitani 
                                                                                              Chief Executive Officer 
                      Bill Bryant 
                      Chair and President 
                   John Creighton                           P.O. Box 1209 
                     Patricia Davis                           Seattle, Washington 98111 
                   Lloyd Hara                             www. portseattle.org 
                   Gael Tarleton                              206.728.3000 

             An audio of the meeting proceedings and meeting materials are available on the Port of
                                        Seattle web site - 
                http://www.portseattle.org/about/organization/commission/commission.shtml 

             (The approximate point in the audio recording for the specific item is identified by
            minutes and seconds; example: 01:30.) 
                     APPROVED MINUTES 
                COMMISSION REGULAR MEETING JUNE 23, 2009 
            The Port of Seattle Commission met in a special meeting at 12:00 p.m., Tuesday, June
            23, 2009 in the International Conference Center, Airport Office Building, Seattle-Tacoma
             International Airport, Seattle, WA. Commissioners Bryant, Creighton, Hara and Tarleton 
            were present. Commissioner Davis was absent. 
               1.     CALL TO ORDER 
            The special meeting was called to order at 12:35 p.m. by Bill Bryant, Chair and
             President. 
               2.     EXECUTIVE SESSION pursuant to RCW 42.30.110 
            The regular meeting was immediately recessed to an executive session to discuss Legal
            Risk issues for approximately thirty minutes and reconvened to public session. 
           PLEDGE OF ALLEGIANCE 
               3.     APPROVAL OF MINUTES 
           (00:01:01) Motion for approval of the minutes of the May 12 regular meeting and
           the May 19 special meeting  Hara 
           Second  Tarleton 
            Motion carried by the following vote: 

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           In Favor: Bryant, Creighton, Hara, Tarleton (4) 
            Commissioner Davis was absent for the vote. 
               4.   SPECIAL ORDER OF BUSINESS 
              None. 
               5.   UNANIMOUS CONSENT CALENDAR 
               a.  (00:01:49) Authorization for the Chief Executive Officer to authorize all work,
              execute Category III procurement process for IDIG (Indefinite Delivery,
               Indefinite Quantity) contract and execute all contracts, service directives, and
              amendments for professional services to support the concession tenant-funded
             joint concession marketing program. Procurement estimated at $250,000
               annually for a period of up to three years ($750,000 total). 
           Request document: Commission agenda memorandum dated May 29, 2009 and
            computer slide presentation from James R. Schone, Director, Aviation Business
           Development and Deanna Zachrisson, Manager, Aviation Concessions Business 
           Motion for approval of Item 5a  Creighton 
           Second  Hara 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Hara, Tarleton (4) 
            Commissioner Davis was absent for the vote. 
               6.   DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
               a.  (00:02:35) Authorization for the Chief Executive Officer to procure and execute
              a contract for consultant services to implement an update to Sea-Tac Airport's
              Part 150 Noise Compatibility Plan. 
           Request document: Commission agenda memorandum dated June 5, 2009 from Stan
            Shepherd, Manager, Airport Noise Programs. 
             Presenter: Mr. Shepherd 
            Staff commented on the schedule for the upcoming study, noting their commitment to
             expediting the process. It was also noted that the Part 150 studies are typically eligible
             for grant funding. It was stated that staff will work with the FAA, the consultant, and

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             surrounding communities in order to establish a public process prior to the Part 150
             study. 
             Commissioner Creighton reiterated that there needs to be a full and inclusive public
             process, staff replied that Commissioners will also have an opportunity to weigh in before
             the process begins. 
            Commissioner Hara requested that during the study, staff return to brief the Commission
             on the status of the plan. 
           Motion for approval of Item 6a  Tarleton 
           Second  Hara 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Hara, Tarleton (4) 
            Commissioner Davis was absent for the vote 
            Item 7a was advanced on the agenda as follows: 
               7.   STAFF BRIEFINGS 
               a.  (00:10:43) Briefing on Rental Car Facility (RCF) Program Status 
            Presentation documents: Commission agenda memorandum dated June 15, 2009 and
            computer slide presentation from George England, Program Leader, Aviation Capital
            Improvement Program and Janice Zahn, Assistant Director, Engineering, Construction
           Services; and draft Commission agenda memorandum dated June 18, 2009 from Michael
            Ehl, Director, Airport Operations and George England, Program Leader, Aviation Capital
           Improvement Program. Also included was a draft memorandum which staff planned to
            present to the Commission at the June 30 Commission meeting. 
             Presenters: Mr. England, Ms. Zahn, and Ralph Graves, Managing Director, Capital
           Development Division 
            Mr. Graves provided information on the status of the Rental Car Facility Program, and
             details of the upcoming action item to lift the suspension and proceed with the restart and
           completion of the RCF Program. Mr. Graves stated that staff intended to return with that
            request at the next Commission meeting, June 30. 
            Also provided was the background on the suspension of the project in December, 2008,
            due to weakened financial markets. Comments were made regarding the significance of
             the impacts when a project of this magnitude is delayed. 

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             Specific areas addressed included: 
            Overview 
              Current Status of RCF Program 
                  o Design 
                        Bus Maintenance Facility Project 
                       Off-Site Roadway Improvements Project 
                      Main Terminal Improvements 
                       Bus Purchase Project 
                   o Construction 
                     RCF Project 
             Upcoming Commission Request 
              RCF Program Budget Authorization 
             RCF GC/CM Construction Contract 
              Change Orders  Conforming Design Development 
               Change Orders  Suspension / Restart 
              One-Time Change Order Policy Adjustment 
             Next Steps 
              Future Commission Action Items 
             Dick King, Barclays Capital, provided current status of the bonds sale for the financing of
             the project, noting that the feedback from potential investors was nearly universally
              positive. 
            Commissioner Tarleton commented on the need for staff and Turner Construction to
             accurately document, for the historical record, the entire experience of the suspension of
             the project as well as the restart, noting the importance of such a record in case of an
              audit in the future. 
            Responding to Commissioner Bryant's question as to whether or not there was a chance
            the Rental Car Industry would change their mind as far as supporting the project, Mr.
            Schone assured him that although they were concerned with cost, he was certain that the
             industry wanted staff to move forward with the project. 
            The agenda was returned to Staff Action Items as follows: 
              b.  (01:09:50) Resolution No. 3624, First Reading. Amending and restating
              Resolution No. 3599, and authorizing Port staff to raise the Customer Facility
              Charge to a level sufficient to pay the Port's obligations under the Lease
              Agreement for the Consolidated Rental Car Facility and requiring Port staff to
               raise the Customer Facility Charge to a level sufficient to at all times repay the
              Project Financing and Port Investment, as those terms are defined in Resolution
              No. 3624. 


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           Request document: Commission agenda memorandum dated June 12, 2009 from James
            R. Schone, Director, Aviation Business Development and Elizabeth Morrison, Senior
            Manager, Corporate Finance 
             Presenters: Ms. Morrison and Mr. Schone 
            Ms. Morrison provided background explanation of the mechanism for establishing the
            Customer Facility Charge (CFC) rate paid by rental car customers. She noted that the
            resolution be presented today would amend and restate the previous CFC Resolution, to
             provide for the current financing plan so that the CFC can be set to a rate sufficient to pay
             the debt service on the bonds, notes and Port funds used to finance the Rental Car
              Facility. 
           Motion for approval of Item 6b  Tarleton 
           Second  Creighton 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Hara, Tarleton (4) 
            Commissioner Davis was absent for the vote 
                c.  (01:14:30) Resolution No. 3622, Second Reading and Final Passage. Providing
              acquisition by purchase and/or condemnation of certain real property located at
             14635 Des Moines Memorial Drive South, (King County Tax ID Number
              2023.04-9091), in the City of Burien, Washington. 
           Request document: Commission agenda memorandum dated June 16, 2009 and map
            from James R. Schone, Director, Aviation Business Development and Jude P. Barrett,
            Manager, Acquisitions and Relocation 
             Presenters: Mr. Barrett and Stan Shepherd, Manager, Airport Noise Programs 
             Mr. Barrett noted that staff and the property remained at an impasse regarding the
            property value, and therefore were requesting Second Reading and Final Passage of
            Resolution No. 3622. 
           Motion for Resolution No. 3622, Second Reading and Final Passage  Creighton 
          Second: Tarleton 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Hara, Tarleton (4) 

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            Commissioner Davis was absent for the vote 
              d.  (01:17:30) Resolution No. 3623, First Reading. Providing for acquisition by
              purchase and/or condemnation of certain real property located at 14211 Des
             Moines Memorial Drive South (King County Tax ID Number 172304-9219), in
              the City of Burien, Washington. 
           Request document: Commission agenda memorandum dated May 19, 2009 and map
            from James R. Schone, Director, Aviation Business Development and Jude P. Barrett,
            Manager, Acquisitions and Relocation 
             Presenter: Mr. Barrett 
            Mr. Barrett noted that an offer had been proposed in late 2008 to the property owner, and
             despite numerous attempts to request a counter offer or appraisal of the property, none
             had been received, and are therefore hoping this process would help lead to resolution. 
            Motion for Resolution No. 3623, First Reading - Tarleton 
           Second  Creighton 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Hara, Tarleton (4) 
            Commissioner Davis was absent for the vote 
                e.  (01:22:48) Author ization for the Chief Executive Officer to approve all work,
              purchases and contracts including: advertise, award, administer, prepare,
              execute and amend any and all necessary service agreements for the SharePoint
             Records and Document Management System project in an amount not to exceed
              $800,000. 
           Request document: Commission agenda memorandum dated June 5, 2009 from Linda
            Strout, Deputy Chief Executive Officer and Peter Garlock, Chief Information Officer 
             Presenter: Mr. Garlock 
            Mr. Garlock noted that the SharePoint system is intended to replace the current records
            and document management system (Hummingbird), in order to resolve technical
            problems, improve functionality, and reduce operating costs. He noted that the new
            system would be more compatible with Microsoft products currently being used at the
              Port. 
            Motion for approval of Item 6e  Tarleton 

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           Second  Hara 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Hara, Tarleton (4) 
            Commissioner Davis was absent for the vote 
                 f.  (01:34:17) Authorization for the Chief Executive Officer to approve all work,
              purchases and contracts including: advertise, award, administer, prepare,
              execute and amend any and all necessary service agreements for the Data
              Archive Project in an amount not to exceed $560,000. 
           Request document: Commission agenda memorandum dated June 11, 2009 from Peter
            Garlock, Chief Information Officer 
             Presenter: Mr. Garlock 
            Mr. Garlock noted that the proposed system would be to provide a better backup of
             archival data than is currently used. He also stated this system would be a more
            beneficial system in the case of an emergency. 
            Responding to Commissioner Bryant's question about which ICT projects are being
            deferred in order to proceed with this one, Kim Albert, Senior Manager, IT Business
             Services replied that one was the internet redesign project and another was an access
             control project. She clarified the project being proposed today was moved forward from
            2010 to the current time, and the two being deferred were being 'switched' to 2010. 
           Motion for approval of Item 6f  Creighton 
           Second  Hara 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Hara, Tarleton (4) 
            Commissioner Davis was absent for the vote 
               g.  (01:39:39) Authorization for the Chief Executive Officer to execute a new
             Collective Bargaining Agreement between the International Brotherhood of
             Teamsters Local Union No. 117 representing Bus Drivers and Parking Service
             Revenue Representatives. 
           Request documents: Commission agenda memorandum dated May 15, 2009 and
           agreement from David Leon, Labor Relations Manager and Gary Schmitt, Labor
             Relations Director. 

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             Presenters: Mr. Schmitt and Mr. Leon 
           Motion for approval of Item 6g  Hara 
           Second  Tarleton 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Hara, Tarleton (4) 
            Commissioner Davis was absent for the vote. 
               7.   STAFF BRIEFINGS 
              b.  (01:42:29) Northwest Ports Clean Air Strategy 2008 Implementation Report 
            Presentation documents: Commission agenda memorandum dated June 15, 2009 and
            computer slide presentation from Stephanie Jones Stebbins, Senior Manager, Seaport
           Environmental Programs 
             Presenter: Ms. Jones Stebbins 
            Ms. Stebbins stated that the official Clean Air Strategy Implementation Report had been
             released earlier in the day and would be posted to the Port's website the following day.
            She provided background on the Port's clean air strategy approach and measures which
            had been adopted, which included the following areas: 
             Ocean-Going Vessels 
             Cargo-Handling Equipment 
             Rail 
              Harbor Craft 
            Trucks 
            Public Testimony regarding Item 7b was received from the following: 
               Heather Weiner, Coalition from Clean and Safe Ports. Ms. Weiner provided 
                 comments on what some other ports are doing related to the clean trucks program.
                 Ms. Weiner also spoke about her interest in seeing upcoming amendments to the
                  Port's terminal leases. 
                Responding to Commissioner Bryant's comments about terminal leases, Charlie
                  Sheldon, Managing Director, Seaport Division, stated that the leases are still in
                  negotiation, but are on track as far as the anticipated schedule. 

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               A written copy of comments dated June 23, 2009 was submitted for the record by
                 Fred Felleman, Friends of the Earth. A copy of the document is, by reference,
                  made a part of these minutes, is marked Exhibit 'A,' and is on file in Port offices. 
                c.  (02:01:32) Briefing on July 1, 2009 Port Property Insurance Renewal 
            Presentation documents: Commission agenda memorandum dated June 23, 2009 and
            computer slide presentation from Jeff Hollingsworth, Risk Manager 
             Mr. Hollingsworth noted that the Port's current property policy is about to expire, and
             that the Port is currently working to be both selecting a broker and finalized the purchase
             of the coverage for the policy year beginning on July 1, 2009. 
            Items addressed by Mr. Hollingsworth included: 
              Property Insurance Re-cap 
              Property Insurance Coverage 
                   o Fire, Wind, Collapse, Impact, Explosion 
                   o Terrorism  Separate Limit 
                    o Construction in Process  Separate Limit 
                    o Rental Car Facility  Separate Builder Risk Policy 
               Current Structure of Property Program 
                   o Major Deductibles 
                   o Main Limits Insured 
              Underwriting of Program 
               Property Insurance Cost Factors 
               Major Property Losses (excluding earthquake and environmental) 
              Earthquake Insurance Challenges and Options 
               Current Capital Projects 
              Property Renewal Forecast 
               8.   NEW BUSINESS 
            Commissioner Bryant provided a brief report on his recent tour of southwest Washington
            rail projects, which was taken with Clare Petrich, Port of Tacoma Commission President. 
            He also commented on a recent trip to central and eastern Washington taken with CEO
            Yoshitani and Kurt Beckett, Director of External Affairs. During this trip, Port customer
             calls were made and transportation projects were looked at as well. 
               9.   POLICY ROUNDTABLES 
           None. 

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        10. ADJOURNMENT 
            The regular meeting was adjourned at 3:30 p.m. 
             (A digital recording of the meeting is available on the Port's website.) 

           Lloyd Hara 
            Secretary 















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