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Special Meeting on Feb 24, 2009 1:00PM

Minutes for the Port Of Seattle Commission meeting, held on Feb 24, 2009 1:00PM

                PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
         TUESDAY, FEBRUARY 24, 2009                         P. 2 
            (00:01:11) Motion for approval of minutes of the regular meeting of January 13,
           2009 - Hara 
            Motion carried by the following vote: 
           In Favor: Creighton, Davis, Hara (3) 
            Commissioner Tarleton was absent from the subject meeting 
            Commissioner Bryant was absent for the vote. 
               4.     SPECIAL ORDER OF BUSINESS 
           None. 
               5.     UNANIMOUS CONSENT CALENDAR 
            (00:02:55) Commissioner Tarleton noted that two items were being removed from the
            Consent Calendar for individual votes. She noted that Port legal counsel had suggested
            removing from the consent calendar, Item 5a, as resolutions should be voted on as a
             separate item; and also stated that Item 5b would be removed for a separate vote due to
            Commission request for further discussion of the item. 
             5c    (00:04:06) Authorization to amend the Lease and Concessions Agreement of
           Concessions International 
           Request document: Commission agenda memorandum dated February 18, 2009 from
            James R. Schone, Director, Aviation Business Development and Deanna Zachrisson,
            Manager, Aviation Concessions Business 
            Motion for approval of Item 5c  Davis 
            Motion carried by the following vote: 
           In Favor: Creighton, Davis, Hara, Tarleton (4) 
            Commissioner Bryant was absent for the vote 
            The agenda was returned to Items 5a and 5b for separate votes, as follows: 
               a.  (00:04:55) Resolution No. 3610, Second Reading and Final Passage. Declaring
              Port of Seattle Crane 54 surplus for Port purposes and authorizing its sale or
               disposal. 
           Request document: Commission agenda memo dated February 9, 2009 from Nora Huey,
            Director, Central Procurement Office and Mike Burke, Director, Container Operations 

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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
         TUESDAY, FEBRUARY 24, 2009                         P. 3 

           Motion for Second Reading and Final Passage of Resolution No. 3610  Hara 
            Motion carried by the following vote: 
           In Favor: Creighton, Davis, Hara, Tarleton (4) 
            Commissioner Bryant was absent for the vote. 
              b.  (00:05:43) Authorization to bid and execute a contract for Banking Services for
              five years with the right to extend for two additional one-year periods at an
              estimated cost of $8,800,000 
           Request document: Commission agenda memorandum dated February 6, 2009 from
            Craig J. Kerr, Treasure Manager 
             Presenter: Mr. Kerr 
            Mr. Kerr responded to Commissioner Hara's question as to whether staff needed to return
            to the Commission for final approval once bids for the banking services were received.
             He stated that that hadn't been necessary in the past, but could do so if directed by the
          Commission. CEO Yoshitani noted that traditionally, the committee reviewing the bids
            makes the selection of the winning bidder. General Counsel Watson stated that one of
             the reasons the process has been structured in this manner is to avoid pressure being put
            on Commissioners from those who were not selected for the contract. 
            Commissioner Tarleton commented that this type of a contract would have substantial
             visibility to the Port's Audit Committee, allowing visibility to any abnormalities or
            concerns. 
            Commissioner Hara reiterated that his concern had to do with the large dollar amount of
             the contract being discussed. 
           Motion for approval of Item 5b  Davis 
            Motion carried by the following vote: 
           In Favor: Creighton, Davis, Tarleton (3) 
          Opposed: Hara (1) 
            Commissioner Bryant was absent for the vote 
               6.     POLICY AND STAFF BRIEFINGS 


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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
         TUESDAY, FEBRUARY 24, 2009                         P. 4 
               a.  (00:15:11) Briefing on progress made to fulfill the actions requested in the
             motion of the March 25, 2008 Commission Regular Meeting addressing support
               for federal and local initiatives related to aviation greenhouse gas emissions. 
            Presentation documents: Commission agenda memorandum dated December 22, 2008
            and computer slide presentation from Elizabeth Leavitt, Director, Aviation
           Environmental Programs; Russ Simonson, Senior Environmental Program Supervisor;
            and Michael Lufkin, Senior Environmental Strategy Manager 
             Presenters: Ms. Leavitt, Mr. Simonson and Mr. Lufkin 
            Staff provided background on the substance of the original Commission motion regarding
            greenhouse gas emissions, which was proposed in 2008. 
             Staff discussed the following within their presentation: 
                Progress made to date 
                  Actions taken to support Federal initiatives 
                 Targets to reduce emissions 
                POS Owned/Controlled Emissions 
                Emission Reductions Needed to Achieve Recommended Goals 
                 Emission Reduction Initiatives 
                Airline Emissions 
                 Airline Emission Reduction Projects 
                      o  Pre-conditioned Air 
                      o  Gate Electrification 
                      o  Ground Support Equipment Electrification 
                      o  Third Runway Activation 
                      o  Continuous Descent Approach 
                 Public Owned/Controlled Emissions, which include Vehicle Miles Traveled 
               Next Steps 
            Commissioner Creighton stated that he believed the two major areas of concern of
            community members in the Airport area continue to be noise and emissions. Staff
             responded to his questions about addressing a 'stratifed approach' to aircraft landings
             similar to that which is done at Heathrow Airport. 
            Staff also responded to Commissioner Creighton's question about what may be
             forthcoming with the Federal stimulus money, noting that at this point it was unsure. 
           Commissioner Davis commented on the importance of hydro power and the need to
             figure out new ways of energy use for the future. 
            Commissioner Hara commented on the use of wind turbines at Boston Logan Airport,
             and noted that the largest use of the carbon footprint there was the jet engines. 

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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
         TUESDAY, FEBRUARY 24, 2009                         P. 5 
            Public comment regarding Item 6a was received from the following: 
                  Ed White, Vice-president, Corporate Real Estate, Alaska Airlines. Mr. White
                   commented on Alaska Airline's and Horizon Air's support of their
                   commitment to reducing greenhouse gas emissions. A written copy of Mr.
                   White's comments was submitted for the record; is by reference, made a part
                     of these minutes; is marked as Exhibit 'A;' and is on file in Port offices. 
              b.  (00:53:32) Briefing on the Port of Seattle's first emission reduction credits
             banked with the Puget Sound Clean Air Agency 
            Presentation documents: Commission agenda memorandum dated January 6, 2009 and
            computer slide presentation from Elizabeth Leavitt, Director, Aviation Environmental
           Programs and Russ Simonson, Senior Environmental Program Supervisor 
             Presenters: Ms. Leavitt, Mr. Simonson 
            Ms. Leavitt provided background on the emissions reductions credit program, noting the
            in 2000, the Port of Seattle entered into an agreement with Puget Sound Clean Air
            Agency which allowed Seattle-Tacoma International Airport (Airport) to bank emission
             reduction credits (ERC's) for use at a later time. She stated that this is the first emission
             reduction credit banking is being done in the state of Washington. 
            Staff reviewed amounts of credits banked, which included: 
                 22 tons/year of carbon monoxide 
                 6 tons/year of hydrocarbons 
                  34 tons/year of oxides of nitrogen 
                  2 tons/year of sulfur oxides 
                  10 tons/year of particulate matter 
                 971 tons/year of carbon dioxide 
            Commissioner Tarleton noted the importance of tracking the numbers in order to avoid
            any double-counting, and also stated that a standard should be set on how the public
             receives this information. 
            Comments were made noting the importance of encouraging the Seaport and other
             divisions to work on emissions reductions, not only the Airport. 
            Commissioner Davis stated that the emissions reductions plan needs to be included in the
             joint Port of Seattle/Port of Tacoma work. 
                c.  (01:10:40) Briefing on Amendments to Concession Leases of prime
              concessionaires: Host International, Seattle Restaurant Associates, and Airport
            Management Service LLCs (dba Hudson News) 

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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
         TUESDAY, FEBRUARY 24, 2009                         P. 6 
            Presentation documents: Commission agenda memorandum dated February 17, 2009 and
            location map from James R. Schone, Director, Aviation Business Development and
            Deanna Zachrisson, Manager, Aviation Concessions Business. 
             Presenters: Mr. Schone and Ms. Zachrisson 
             Staff presented background on efforts to address impacts to certain concessionaires at
            Seattle-Tacoma International Airport (Airport), and clarified that changes being proposed
             were related to operational changes in concourses at the Airport and not due to the
            current economic downturn. 
            Public comment regarding Item 6c was received from the following individuals: 
              Jerry Whitsett, Owner, Africa Lounge and Mountain Room Bar. Mr. Whitsett
                  voiced his concern over the options being proposed by staff. 
               Carla DewBerry, legal representation of Mr. Whitsett. Ms. DewBerry stated her
                 concern over the Port's proposed plan and commented that she would like to see a
                  shift in the use of gates at the Airport concourses. 
              David Fukuhara, Managing Partner of Concourse Concessions. Mr. Fukuhara 
                 provided copies of documents to the commission for reference, one being a
                 response to moves at Sea-Tac Airport and the other a compilation of maps of food
                 and beverage concessions at the Airport. Copies of these documents are, by
                  reference, made a part of these minutes; are marked collectively as Exhibit 'B;'
                   and are on file in Port offices. Mr. Fukuhara commented on the importance of job
                  retention and the need to maintain a high level of service to the traveling public. 
             Renee Tedesco, HMS Host/SRA. Ms. Tedesco commented in favor of the
                  proposed Port plans for concessionaires. 
               Dan Eberhardt, Business Owner, Old Seattle Deli. Mr. Eberhardt addressed the
                 possible domino effect which could result to businesses from the changes being
                  suggested by the Port. 
              LeeAnn Subelbin, Business Owner, Filo Foods, BF Foods. Ms. Subelbin
                 commented that as an owner of two businesses at the Airport, she would receive a
                 'double hit' from the changes being suggested by the Port. 
              Tracy Peters, CVC Foods, LLC dba Burger King. Mr. Peters commented that the
                 proposed changes may result in a need to reduce the number of his employees. 
                Fred Felleman, who noted that, as a traveler, it would be helpful to provide maps
                  to travelers letting them know the location of vendors near individual gates. 
            Commission Creighton commented that due to the current national economic crisis, staff
            may need to be more creative and think harder about options available for
             concessionaires at the Airport, stating that job retention is a critical issue. He talked
             about the need to continue to work collaboratively with the concessionaires. 
            Commissioner Hara spoke about the need for the Port to continue to examine the small
            business component and commented that he believes a large number of small businesses

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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
         TUESDAY, FEBRUARY 24, 2009                         P. 7 
            on Concourse A are at risk. He also raised the question of the possibility of setting up
            some type of kiosk businesses for the DBE's to operate. 
            Commissioner Tarleton stated the importance of helping the tenants understand how they
            can plan for the upcoming year. She also commented that she would like to see a range
            of impacts and consequences to the budget that may result from decisions being made. 
            Commissioner Davis commented on the need to help the Airlines as well as the tenants,
             and stated that she would like to have a briefing prior to the March 5 meeting to better
             understand the options the Port will be offering the concessionaires. 
              d.   (02:20:00) Briefing on Aviation Maintenance Continuous Improvement and
             Cost Management Efforts 
            Presentation documents: Commission agenda memorandum dated February 17, 2009 and
            computer slide presentation from Michael Feldman, Deputy Managing Director, Aviation
            Division and John Christianson, General Manager, Aviation Maintenance 
             Presenters: Mr. Feldman, Mr. Christianson, and Jennifer Mims, Senior Manager,
            Aviation Maintenance Assets and Logistics 
            Staff provided background on a program within the Aviation maintenance department
             which began in January, 2006 as part of one of the Airport's strategic goals regarding
           cost management. 
            Mr. Feldman recognized the partnership with ICT in developing the operating systems
            which are now being used as part of the cost management efforts. He also acknowledged
            the efforts of the maintenance department technicians in the development of the program. 
            Within the Continuous Improvement Program, staff noted three areas of focus: 
             Materials Management 
            Work Management 
             Equipment (Asset) Management 
            Staff commented on how the program contributes to the management of Cost Per
            Enplanement (CPE) growth, and noted that the information has been communicated to
             the Airlines. 
            Staff noted awards which have been received since the inception of the Continuous
           Improvement Program. 
                e.  (02:43:14) Third Runway 16R/34L Noise Briefing 
            Presentation documents: Commission agenda memorandum dated February 6, 2009 and
            computer slide presentation from Stan Shepherd, Manager, Airport Noise Programs 

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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
         TUESDAY, FEBRUARY 24, 2009                         P. 8 
             Presenters: Mr. Shepherd and Diane Summerhays, Manager, Community Development
           Program and Russ Simonson, Senior Environmental Program Supervisor. 
            Staff provided an update on the use of the third runway (runway) at Seattle-Tacoma
            International Airport (Airport), which opened in November, 2008, and noted that the
            need for the runway was driven by the impact of airline delays in poor weather. 
             Mr. Shepherd clarified roles and responsibilities related to the runway: 
           FAA 
                  o  Manages air traffic and use of runway 
               Port of Seattle 
                  o  Operator of airport 
                  o  Manages airport facilities and infrastructure 
                  o  Manages community noise programs 
           Staff reviewed comments commonly received by community members since the opening
            of the runway, which include: 
              More noise than expected 
              Use of runway more than promised 
               Thought runway was to be used only in bad weather 
              Want more noise mitigation 
            Runway usage statistics were reviewed as were changes in the mix of aircraft at the
             Airport. Staff also provided background information on noise mitigation accomplished
             prior to the opening of the runway. 
            Mr. Simonson spoke about projected air quality and climate benefits, and noted that
            actual numbers would be tracked against the projections. Commissioner Tarleton stated
             that she would like to receive reports on the actual benefits in order to provide accurate
            information to the community. 
            Ms. Summerhays talked about community outreach being done, and noted that the noise
            department's website has been revamped to include much more information for the
             public. She also spoke of the need to reach a broad range of communities to address
             issues of concern. 
           Ms. Summerhays mentioned that Mr. Shepherd has formed a small working group with
            the FAA and other technical people in order to have open and ongoing communication
            regarding the runway. 
               7.     MARINE ITEMS 
           None. 
               8.     AVIATION ITEMS 

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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
         TUESDAY, FEBRUARY 24, 2009                         P. 9 

               a.  (03:08:42) Authorization to execute a professional services ag reement for
              Airline Technical Representative (ATR) to perform technical review on behalf of
              the airlines and airport related to Capital Projects at a maximum estimated cost
               of $1.6 million for four years. 
           Request document: Commission agenda memorandum dated January 21, 2009 from
            Dave Soike, Deputy Managing Director, Aviation Division 
             Presenter: Borgan Anderson, Manager, Aviation Finance and Budget 
            Public comment regarding Item 8a was received by the following: 
              Ed White, Alaska Airlines. Mr. White commented on the cost beneficial services
                 that the ATR provides, and stated his agreement with the selection made. 
           Motion for approval of Item 8a  Hara 
            Motion carried by the following vote: 
           In Favor: Creighton, Davis, Hara, Tarleton (4) 
            Commissioner Bryant was absent for the vote 
              b.  (03:13:58) Authorization for construction and approval to advertise for
              construction bids for the 2nd floor Heating, Ventilation and Air-Conditioning
             (HVAC) Upgrades Project at Seattle-Tacoma International Airport in the
              amount of $1,282,350, for a new estimated total project cost of $1,497,000. 
           Request document: Commission agenda memorandum dated February 6, 2009 from
            James R. Schone, Director, Aviation Business Development; Robert F. Riley, Director,
            Aviation Capital Improvement Program, and Richard Ottele, General Manager, Aviation
             Facilities and Infrastructure 
             Presenters: Deanna Zachrisson, Manager, Aviation Concessions Manager and Joe
            Nessel, Capital Project Manager 
           Motion for approval of Item 8b  Davis 
            Motion carried by the following vote: 
           In Favor: Creighton, Davis, Hara, Tarleton (4) 
            Commissioner Bryant was absent for the vote 

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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
         TUESDAY, FEBRUARY 24, 2009                        P. 10 
                c.  (03:20:17) Authorization for additional fun ding for the Parking Consolidation
              Project in the amount of $65,000 for a total project cost not-to-exceed $250,000. 
           Request document: Commission agenda memorandum dated February 11, 2009 from
            Peter Garlock, Chief Information Officer 
             Presenters: Mr. Garlock and Paul Grace, Senior Manager, Airport Operations, Landside 
           Motion for approval of Item 8c  Creighton 
            Motion carried by the following vote: 
           In Favor: Creighton, Davis, Hara, Tarleton (4) 
            Commissioner Bryant was absent for the vote. 
              d.  (03:23:44) Resolution No. 3612, First Reading and Public Hearing. Authorizing
              the Chief Executive Officer to Transfer Ownership of security equipment from
              the Port of Seattle to the Transportation Security Administration (TSA). 
           Request document: Commission agenda memorandum dated February 3, 2009 from
            Michael Ehl, Director, Airport Operations and Nick Harrison, Senior Manager, Airport
            Operations 
             Presenter: Mr. Harrison 
            Mr. Harrison provided background on the surplusing of security equipment owned by the
            Port and used by the TSA. 
            Commissioner Tarleton recessed the Port Commission special meeting to an open public
            hearing, and there being no comment, the public hearing was closed and the Commission
            special meeting was reconvened. 
           Motion for First Reading of Resolution No. 3612  Hara 
            Motion carried by the following vote: 
           In Favor: Creighton, Davis, Hara, Tarleton (4) 
            Commissioner Bryant was absent for the vote 
               9.     CAPITAL DEVELOPMENT 
           None. 
             10.    REAL ESTATE 

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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
         TUESDAY, FEBRUARY 24, 2009                        P. 11 

           None. 
             11.    GENERAL BUSINESS 
           None. 
             12.    NEW BUSINESS 
            Public comment was received from the following individuals: 
               Fred Felleman, Friends of the Earth. Mr. Felleman commented on the need for
                  public understanding of how the Port works within the legislature. 
                Stephen Sullivan, who noted appreciation of the Port's willingness to listen to
                  work with their concessionaires in providing some relief during these difficult
                   financial times. 
            Commissioner Davis asked that in the near future, there be a formal recognition of Port
            awards recently received, and also commented that she would like to see a presentation
             on the avian radar. 
            Commissioner Hara commented on attendance at the recent Black History Month
             presentation. 
             13.    ADJOURNMENT 
            There being no further business, the meeting was adjourned at 4:49 p.m. 
             (A digital recording of the meeting is available on the Port's website.) 

           Lloyd Hara 
            Secretary 






                Feb 24 SM Min