Commission Meeting Portal

Special Meeting on Mar 10, 2009 1:00PM

Minutes for the Port Of Seattle Commission meeting, held on Mar 10, 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 SPECIAL MEETING MARCH 10, 2009 
            The Port of Seattle Commission met in a special meeting at 1:00 p.m., Tuesday, March
            10, 2009 at the Nordic Heritage Museum, 3014 NW 67th Street, Way, Seattle, WA.
            Commissioners Bryant, Davis, and Hara and Tarleton were present. Commissioner
            Creighton was absent. 
               1.     CALL TO ORDER 
            The special meeting was called to order at 1:00 p.m. by Bill Bryant, Commission
             President. 
               2.     EXECUTIVE SESSION pursuant to RCW 42.30.110 
           None. 
           PLEDGE OF ALLEGIANCE 
               3.     APPROVAL OF MINUTES 
           None. 
               4.     SPECIAL ORDER OF BUSINESS 
           None. 
               5.     (00:01:08) UNANIMOUS CONSENT CALENDAR 

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               a.  Approval of payment of outstanding Claims and Obligations for the period of
             February 28, 2009 
              b.  Request for approval to issue Change Order #062 for the Terminal 91 Cruise
             Ship Terminal Project Contract MC-0314783 
           Motion for approval of Unanimous Consent Calendar  Davis 
            Motion carried by the following vote: 
           In Favor: Bryant, Davis, Hara, Tarleton (4) 
            Commissioner Creighton was absent for the vote. 
            Marine Item 7a was advanced on the agenda as follows: 
               7.     MARINE ITEMS 
               a.  (00:02:19) Authorization of construction and approval to advertise dock
              improvements and repairs needed for barge layberth locations at Terminal 25,
              Pier 28, and Terminal 46 for an estimated amount of $250,000, for a total new
              authorization of $300,000. 
           Request document: Commission agenda memorandum dated January 28, 2009 from
            Mike McLaughlin, Director, Cruise and Industrial Properties and Mark Longridge,
            Capital Project Manager 
             Presenters: Mr. McLaughlin and Mr. Longridge 
            Commissioner Davis commented that this is the sort of expenditure we need to ensure we
             can maintain a vital working waterfront. 
            Motion for approval of Item 7a  Davis 
            Motion carried by the following vote: 
           In Favor: Bryant, Davis, Hara, Tarleton (4) 
            Commissioner Creighton was absent for the vote. 
            Real Estate Item 10a was advanced on the agenda as follows: 
             10.    REAL ESTATE 
               a.  (00:06:24) Request for authorization for design, permitting and construction of
             temporary landscaping and flatwork improvements at the Shilshole Bay Marina

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              restaurant pad site for an amount Not To Exceed $300,000, using existing funds
              from the previously approved $80,000,000 project. 
           Request document: Commission agenda memorandum dated February 20, 2009 and
            computer slide presentation from Mark Longridge, Capital Project Manager, Capital
            Development Division, Melinda Miller, Director, Portfolio and Asset Management, Real
            Estate Division, and Darlene Robertson, Director, Harbor Services, Real Estate Division. 
             Presenters: Mr. Longridge and Melinda Miller, Manager, Seaport Commercial
           Development 
            Ms. Miller stated that the request included only a minor change in scope and schedule,
            and no change in budget. 
            Slides were provided showing the current condition of the site where proposed
           redevelopment would be done. Ms. Miller commented that they would still like to see a
             restaurant at the site, and estimated that it could be in three to five years at minimum. 
             Commissioner Hara stated his approval of the idea of having a new restaurant at the site
            at some point, and also commented on the need to have adequate parking available there. 
           Motion for approval of Item 10a  Tarleton 
            Motion carried by the following vote: 
           In Favor: Bryant, Davis, Hara, Tarleton (4) 
            Commissioner Creighton was absent for the vote 
            Commissioner Bryant noted that following Policy and Staff Briefings, the meeting would
             be opened once again for a third Policy Roundtable to discuss issues related to the
            Working Waterfront, and public comment would also be taken. He commented that there
            would be two panels - one would be about current issues at Fishermen's Terminal and the
            other would be about ongoing questions regarding the Alaskan Way Viaduct
            replacement. 
               6.     POLICY AND STAFF BRIEFINGS 
               a.  (00:18:45) Working Waterfront  Real Estate and Seaport Overview 
            Presentation documents: Commission agenda memorandum dated February 20, 2009 and
            computer slide presentation from Joe McWilliams, Managing Director, Real Estate
            Division and Charlie Sheldon, Managing Director, Seaport Division 
             Presenters: Mr. McWilliams and Mr. Sheldon 

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            Staff provided an overview of the holdings of the Port, including Cargo Terminals;
            Terminal 90/91; the Grain Terminal; Central Waterfront properties, which include the
            World Trade Center, Pier 69, Bell Harbor International Conference Center, and Bell
            Harbor Marina; as well as the Recreational Marinas, Maritime Industrial Center, and
            Fishermen's Terminal. They commented on the economic impacts of the facilities and
             also noted direct, indirect, and induced jobs which were mentioned in the recent
            Economic Impact Study of the Port. 
            Mr. McWilliams noted a Citizens' Advisory Group which is seeking proposed city code
            changes which would require a 10-15 foot setback from the water, in order to protect the
            environment at water's edge, which could change the viability of long-term plans for the
             planned restaurant discussed in the earlier presentation. 
             Mr. McWilliams stated that beginning this fall, the Port would be adopting a liability
            insurance requirement for both recreational and commercial boat owners. 
            Responding to Commissioner Hara's questions about the potential for future growth and
            land purchases, specifically for off-dock growth, Mr. McWilliams stated that the Port has
            been looking at three Crowley properties and they are currently looking at environmental
             cleanup issues. Mr. Sheldon noted that we currently have the capacity to handle a lot
            more containers than we are handling today. 
            Mr. McWilliams spoke about deferred maintenance issues needing to be addressed,
             including failing roofs; failing fenders/pilings/dolphins; failing piling coatings;
            settlement/heaving paving; and shifting foundations and building settlement. 
            During discussion of net lockers at Fishermen's Terminal, Acting Fire Marshal, Gary
            English addressed the Commission and noted that over time there has been a significant
            change in how the net lockers are used, commenting on resulting significant risk due the
             extraordinary and higher hazards at the facility. He encouraged collaborative work to
             mitigate problems and mentioned that the sprinkler systems at the facility were not
             designed to handle current usage. 
            Mr. English stated that he would be recommending that a notice be written to the
            Department of Planning and Development to look at whether or not the facility is in code
            violation, and commented that the Commission would need to make a decision on how to
             proceed further. 
            Mr. McWilliams commented on another issue at Fishermen's Terminal, that being fish
             sales and fees for the use of the West Wall for direct sales off the vessels. 
        POLICY ROUNDTABLE DISCUSSION FOLLOWED: 

              (1)    (00:56:13) FISHERMEN'S TERMINAL 

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            The Fishermen's Terminal panel members:: 
               Kris Mullan, Project Manager at AFCO & Sons, past FTAC (Fishermen's
               Terminal Advisory Committee) and FTAC Member 
              David Harsilla, FTAC Chair 
            Mr. Mullan commented on the need for teamwork in order to come up with a solution to
             the problems at Fishermen's Terminal, and stated that before the Port acts, they should
             ask for more input from the tenants. 
            Mr. Harsilla commented on steady progress that has been made over the years at
            Fishermen's Terminal, but commented that the facility needs to be upgraded to attract
            more customers and create more economic development. 
            Mr. Mullan responded that with the design of the new docks, we are looking to the future,
            and commented on the availability of resources just outside of Fishermen's Terminal
            where anyone can bring their boat. 
            Mr. Mullan commented that fuel costs are a major factor in making the decision to stay in
             Seattle or go to Alaska and commented that rates are still attractive in Seattle, and Seattle
             is more of a one-stop shopping area, which could attract more vessels. 
            Commissioner Davis wondered if there is a tipping point where competition from Alaska
            could pull fishermen away from Seattle. Mr.Mullan replied that it is definitely related to
             dollars and cents, and that people will do what they can in order to get more business, and
            commented again on the affordable moorage rates at Fishermen's Terminal. 
             Mr. Harsilla he believes the issue of a tipping point is a relevant one and commented that
             competition is stiff. He noted that other ports have done a good job of meeting the needs
            of their fleets, but commented on the advantage of the lockers at Fishermen's Terminal.
             He noted that the majority of people only use their lockers for fishing gear, and that now
             it is common for fishermen to require more gear than in the past since they frequently
             work with multiple fisheries. He commented on the need to focus on the vision of how
             the Port wants to support fishermen. 
            Mr. Harsilla commented on the need for discussion about why there aren't more fish at
            Fishermen's Terminal with the number of vessels that are there, by this meaning a fish
            market. He noted that the Port policies are old and do not reflect the current needs of the
            fishermen. 
            Commissioner Davis agreed that discussion regarding fish sales at the terminal would be
            useful and she would be interested in how many fishermen would be interested in selling
             at the docks. 


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            CEO Yoshitani commented that it might be helpful to find other Fishermen's Terminals
            that may have best management practices which could be used as a model for the Port of
              Seattle. 
            Commissioner Tarleton summarized points she noted during the discussion, which
            included a competitive advantage; we have maintained competitive cost structures; there
             has been a focus on safety; and that there is an eco system involved in the issues
             discussed. 
             Mr. Mullan stressed the need to look out farther than 10-20 years; more like 30-50 years. 
            A five minute recess was called, and the meeting was reconvened for the second Policy
            Roundtable. 
              (2)    (01:52:45) ALASKAN WAY VIADUCT REPLACEMENT 
           The Alaskan Way Viaduct Replacement panel members: 
               Warren Aakervik, President, Ballard Oil Co. 
                Bob Donegan, President, Ivar's 
               John Odland, Vice-president, MacMillan-Piper and Chair of MIC Executive
               Committee 
               Bill Sharp, Vice-president for Port Operations and Fleet Security for Holland
                America Line 
               Kim Suelzle, President, City Ice Cold Storage 
             Prior to moving into the panel discussion of the item, Port staff provided a briefing on
             current Viaduct issues, and a computer slide presentation was given. 
             Presenters: Mike Merritt, POS Government Relations Manager; Ron Paananen,
           Washington State Department of Transportation (WSDOT); and Bob Powers, Seattle
            Department of Transportation (SDOT). 
            Mr. Merritt provided a brief overview status of the current Viaduct program status.. He
             stated that the focus of today's presentation would be on freight connectivity and the
             operation of the portals, and noted that issues regarding the SR99 corridor are critical.
            He also commented on current state legislation regarding the Viaduct option, noting that
             a considerable amount of discussion was still anticipated. 
             Mr. Merritt commented that the Port relies on having an efficient transportation system,
             noting that the current choice should achieve a balance of job retention; sustainable
             regional economic vitality, and environmental benefits. 
            Items also addressed included: 
              Maximizing jobs and economic benefits 

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               Ensuring efficient access to working waterfront 
              Enhancing the waterfront environment 
               Replacing capacity for long-term regional growth 
              Supporting seawall improvements 
            Mr. Paananen recognized the importance of the questions related to portals and how they 
             fit into the current plan for the bored-tunnel option. He provided an overview of the
             current plans for the bored tunnel. 
            Mr. Powers focused on mobility to and from State Route 99 and downtown areas, and
            provided a series of maps showing various access points, both northbound and
            southbound. 
            Mr. Paananen stated that working groups would be established as the design goes forward
             in order to address issues regarding the north portal, the south portal, and waterfront
             areas. Commissioner Tarleton expressed interest in hearing more about the working
            groups, noting that people in West Seattle and the downtown area are very focused on the
             south portal. 
            Mr. Aakervik reviewed options that had been discussed by the stakeholders group, noting
             that the stakeholders hadn't intended to make the bored tunnel the final option, but rather
             continue exploring it as one of the options. He noted his concern over the bored tunnel
             option, stating that he felt it would create a lot of problems for freight and for the public
            as a whole. He commented on the importance of keeping the commercial fishing
             industry and the commercial transportation industry in the city. He stated that he believes
             an elevated structure would still be the best option. 
            Mr. Donegan, spoke representing the five piers between 54 and 60. Areas of importance
             mentioned were the need for the Port to serve as the voice of tourism; to lobby for
             capacity, transport, freight, and maritime; to use expertise to serve as experts to the
             project team on the seawall design; to encourage the project team to do discretionary
             work in the off-season; to remind decision-makers of the importance of this route as a
            state highway; to remember growth and the importance of a solution that accommodates
             growth; to encourage more transit to the waterfront; and to lend credibility to the
            community, which is filled with misconceptions regarding the project. 
            Mr. Odland stressed that he felt the two major concerns are maintaining capacity and
            minimizing construction disruption. He stated that he is against a surface street and also
             an elevated structure as options, and commented that the issue of the portals is a major
            concern of the bored tunnel option. He said that Spokane Street and Mercer are huge
             issues. He commented on the importance of considering special events, tourist season,
            and cruise season when doing traffic analyses. He reiterated the importance of focus on
            East-West connectivity. 


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            Mr. Sharp commented on the importance of focus on the cruise industry, noting that there
             is an opportunity for future growth and increased traffic. He noted concern about
             corridor portals and inefficient links to both the Airport and Pier 91, not only buses, but
             taxis and limousines as well. He said he believes the concerns over traffic on Mercer had
            been understated. 
             Mr. Suelzle stated that he is not wedded to any certain solution to the viaduct
            replacement, but that it should be dependent on good access to Pier 91, and needs to
             address capacity issues. 
            Discussion followed about the importance of considering times when events are taking
             place at Seattle Center, and the impacts of that additional traffic. 
            Commissioner Tarleton spoke of the planning assumptions and the need to have credible
            sources for the forming of those assumptions. There was also discussion of incorporating
             tourist use of the roads into the planning assumptions. 
            Responding to Commissioner Tarleton's question of the possibility of carrying oil by
             barge rather than by road, Mr. Aakervik stated that due to environmental regulations, that
             was not a viable option. 
            Comments were made about the need to work closely with traffic planners as well as to
             listen to the stakeholders. 
            Mr. Odland commented about keeping in mind the movement of employees into both the
             north and south industrial areas, and that this should be considered in the planning
             process. 
            Public Comment regarding Fishermen's Terminal was received from the following: 
             Peder Hvatum. Mr. Hvatum commented on the sprinkler systems in the lofts and
                 commented on the need to come up with a solution to bring them up to code. 
              Peter Knutson, Puget Sound Harvesters. Mr. Knutson spoke about the importance
                 of maintain jobs in the fishing industry and warned against a heavy-handed
                 approach with new policies. A written copy of comments was also submitted by
                 Mr. Knutson, is, by reference, made a part of these minutes, is marked Exhibit
                   'A,' and is on file in Port offices. 
            Public Comment regarding the Viaduct Replacement was received from the following: 
              Robin Guevarra, South Park Resident. Ms. Guevarra expressed concern over the
                  current bored-tunnel option, specifically with the lack of access at the north and
                  south ends. 
              Gene Hoglund, Working Families for an Elevated Viaduct Replacement. Mr.
                 Hoglund stated that he is against the bored-tunnel replacement option and stated
                  concerns over the lack of connectivity at the north end. Mr. Hoglund submitted a

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                  copy of written document for the record, is, by reference, made a part of these
                  minutes, is marked Exhibit 'B,' and is on file in Port offices. 
             Tom Tanner, Magnolia Community Club. Mr. Tanner expressed concern on
                  behalf of Magnolia residents about the lack of north portal access in the current
                 replacement option. He also stated concern over the Mercer Street option. 
               Eugene Wasserman, North Seattle Industrial Association. Mr. Wasserman stated
                  that he believes north-south connectivity issues have not been sufficiently
                  addressed in the current bored-tunnel option. 
            The agenda was returned to Policy and Staff Item 6b as follows: 
         POLICY AND STAFF BRIEFINGS 
              b.  (03:57:15) Capital Improvement Projects Report for the Fourth Quarter, 2008 
            Presentation documents: Commission agenda memorandum dated February 20, 2009,
            computer slide presentation and report from Ralph Graves, Managing Director, Capital
           Development Division 
            Commissioners concluded that since they had all received and reviewed the written report 
             on Capital Projects, it would not be necessary at the time for a verbal briefing, and that if
             they had any questions, they would contact staff. 
               8.     AVIATION ITEMS 
           None. 
               9.     CAPITAL DEVELOPMENT 
           None. 
             11.    GENERAL BUSINESS 
           None. 
             12.    NEW BUSINESS 
            (03:59:05) Public comment was received from the following individual: 
              Will Knedlik, Kirkland. Mr. Knedlik stated his support of the Commission
                 taking input from stakeholders regarding the Viaduct replacement and commented
                  on the need to consider impacts to those on the East side and on the I-405
                 corridor. Mr. Knedlik also asked the Commission to consider asking Sound 
                Transit to contribute to the acquisition of the BNSF rail line 

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             13.    ADJOURNMENT 
            There being no further business, the meeting was adjourned at 5:04 p.m. 
             (A digital recording of the meeting is available on the Port's website.) 

           Lloyd Hara 
            Secretary 














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