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Special Meeting on Apr 21, 2009 1:00PM

Minutes for the Port Of Seattle Commission meeting, held on Apr 21, 2009 1:00PM

                PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
          TUESDAY, APRIL 21, 2009                             P. 2 
             Ms. Jones Stebbins reported on activities that the Port is making available to celebrate not
             only Earth Day, but an entire month devoted to "Sustainability," and stated that there had
            been enough interest among staff to warrant the extra level of information provided. She
            noted that all activities throughout the month were being done without use of Port budget
            funds, and recognized Port staff members who contributed to "Sustainability Month." 
               5.   UNANIMOUS CONSENT CALENDAR 
           None. 
               6.   DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
               a.   (00:08:08) Authorization for the Chief Executive Officer to approve all work
            and contracts including: Advertise, award, administer, prepare, execute and amend
            any and all necessary service agreements for the Enterprise Project Cost
           Management System Project in an amount Not to Exceed $1,975,000 and for an
           ongoing annual support and software license fees in an amount estimated at
            $110,000 per year for five years. 
           Request document: Commission agenda memorandum dated April 3, 2009 from Ralph
            Graves, Managing Director, Capital Development and Peter Garlock, Chief Information
             Officer 
             Presenter: Mr. Garlock 
            Mr. Garlock provided background on the proposed project, noting that it came about as a
            result of the State Auditor"s Office (SAO) audit, which recommended implementing a
            centralized Enterprise Project Cost Management System for improved visibility and
            timeliness of project cost management. 
            Responding to a question from Commissioner Hara, Mr. Garlock stated that this system
            will integrate with the upcoming upgrade of PeopleSoft. 
            Following Commission discussion, it was recommended that the program be vetted with
           the SAO, with Moss-Adams, and with the Audit Committee. 
           Motion for approval of Item 6a  Creighton 
           Second  Hara 
            Motion carried by the following vote: 
           In Favor: Creighton, Davis, Hara, Tarleton (4) 
            Commissioner Bryant was absent for the vote 

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              b.  (00:15:34) Authorization for the Chief Executive Of ficer to approve all work
            and contracts including: Advertise, award, administer, prepare, execute and amend
            any and all necessary service agreements for the implementation of PeopleSoft
            HRMS 9.0 Project, including additional funding of $550,000 for a total project
           amount Not to Exceed $4,300,000. 
           Request document: Commission agenda memorandum dated March 31, 2009 from Peter
            Garlock, Chief Information Officer 
             Presenter: Mr. Garlock 
            Responding to a question from Commissioner Hara, Mr. Garlock stated that this system
             will integrate with the other PeopleSoft systems. 
           Motion for approval of Item 6b  Hara 
           Second  Davis 
            Motion carried by the following vote: 
           In Favor: Creighton, Davis, Hara, Tarleton (4) 
            Commissioner Bryant was absent for the vote 
                c.   (00:21:45) Authorization for the Chief Executive Officer to execute three
            professional services indefinite delivery indefinite quantity (IDIQ) contracts for
            electrical design services of upcoming electrical system capital improvement
            projects at Seattle-Tacoma International Airport (Airport) for a total estimated cost
            of $5,200,000 where each design contract will be the result of a public advertisement
            and a competitive review process to select the design team. 
           Request document: Commission agenda memorandum dated March 6, 2009 from
            Richard Ottele, General Manager, Aviation Facilities and Bob Riley, Director, Airport
           Capital Improvement Program 
             Presenter: Mr. Riley 
             Commissioner Hara expressed appreciation for the staff splitting up the contract into
             multiple contracts, as it allows more opportunity for small businesses to participate. 
            Responding to Commissioner Davis"s question as to whether splitting up the contract add
             to cost, Mr. Riley stated that it would be only a minimal amount. 
            Motion for approval of Item 6c  Davis 
           Second  Creighton 

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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
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            Motion carried by the following vote: 
           In Favor: Creighton, Davis, Hara, Tarleton (4) 
            Commissioner Bryant was absent for the vote 
              d.  (00:30:20) Authorization for the Chief Executive Officer to Authorization for
               the Chief Executive Officer to advertise for construction bids for the Lora Lake
             Demolition, Des Moines, Nursery Mitigation and Third Runway Permanent
              Stormwater Detention Facilities Projects at Seattle-Tacoma International
               Airport (Airport). 
           Request document: Commission agenda memorandum dated March 10, 2009 from
            Michael Ehl, Director, Airport Operations and Robert Riley, Director, Aviation Capital
           Improvement Program 
             Presenter: Mr. Riley 
             Mr. Riley clarified the connection of the three mentioned projects, noting that they were
             all projects related to the Third Runway, needing to be completed to fulfill the Port"s
            obligation to the Third Runway permits. He stated that no funding was being requested,
            as the full Runway program had previously been authorized. 
            Commissioner Creighton raised the question as to whether there was currently any course
             of action that would be proposed for the Lora Lake property itself. Mr. Yoshitani stated
            that staff has been negotiating with the Department of Ecology (DOE) and he would
            return to the Commission to provide an update. 
           Motion for approval of Item 6d  Davis 
           Second  Creighton 
            Motion carried by the following vote: 
           In Favor: Creighton, Davis, Hara, Tarleton (4) 
            Commissioner Bryant was absent for the vote 
                e.   (00:37:17) Authorization for the Chief Executive Officer (CEO) to complete
              demolition of the burned building at Angle Lake School, including foundation
               and debris removal, ancillary cleanup, grading and restoration of the site by
              Port Construction Services and/or authorization for the CEO to advertise and
               execute a construction contract to complete the work. 


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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
          TUESDAY, APRIL 21, 2009                             P. 5 
           Request document: Commission agenda memorandum dated April15, 2009 from James
            R. Schone, Director, Aviation Business Development and Management; Robert F. Riley,
            Director, Aviation Capital Improvement Program; and W. Allan Royal, Manager, Port
            Real Estate Development 
             Presenter: Mr. Riley 
           Motion for approval of Item 6e  Creighton 
           Second - Hara 
            Motion carried by the following vote: 
           In Favor: Creighton, Davis, Hara, Tarleton (4) 
            Commissioner Bryant was absent for the vote 
                 f.   (00:46:08) Resolution No. 3615, Second Reading and Final Passage. Approval
               of Agreements with the Cities of Seattle and Kent, and direct contribution to
              FAST Corridor Phase 2 Projects in those Cities, including the Duwamish
              Intelligent Transportation Systems (ITS) Phase 3 Project for $500,000 and the
               City of Kent's 228th Street Grade Separation Project for 1,190,000. 
           Request document: Commission agenda memorandum dated March 27, 2009 from Eric
            Hanson, Manager, Seaport Planning and Christine Wolf, Regional Transportation
            Program Planner, Seaport 
             Presenter: Ms. Wolf 
            Ms. Wolf noted a typo in the Commission agenda, which stated the Port contribution to
            the City of Kent"s Project would be $1,900,000. She clarified for the record that the
            amount should read $1,190,000. 
           Motion for Resolution No. 3615, Second Reading and Final Passage  Davis 
           Second  Hara 
            Motion carried by the following vote: 
           In Favor: Creighton, Davis, Hara, Tarleton (4) 
            Commissioner Bryant was absent for the vote 
               7.   STAFF BRIEFINGS 
               a.  (00:48:21) Terminal 30 and Terminal 91 Smith Cove Cruise Terminal Update 

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          TUESDAY, APRIL 21, 2009                             P. 6 

            Presentation documents: Commission agenda memorandum dated March 27, 2009;
            attachment, table, and computer slide presentation from Dakota Chamberlain, Director,
            Seaport Project Management. 
             Presenters: Mr. Chamberlain and Mike McLaughlin, Senior Manager, Cruise and
             Industrial Properties 
            Mr. Chamberlain noted that the Cruise Lines, Cruise Terminal of America, and Customs
            and Border Protection have moved into the new Smith Cove Cruise Terminal. He also
            commented on finishing work currently being done at the facility. He noted that the
             terminal would be receiving its first cruise ship on Friday, a Holland America cruise ship. 
            Mr. Chamberlain and Mr. McLaughlin expressed their appreciation for assistance
            provided by both Seaport Maintenance and Port Construction Services (PCS) at the
               facility. 
            Mr. McLaughlin noted that the final inspection of the facility had been approved by the
            U.S. Coast Guard. He stated that the "Sail Away Party," the official ribbon-cutting event
            would be held on May 22, and there would be a reception in the new terminal for the
            industry and community partners. He also said there was a plan to have a community
            open house sometime in June. 
            Commissioner Hara wondered whether or not it would be possible for the Commissioners
             to look at the Terminal 30 facility prior to the official opening. Staff responded that they
            would work with the Commission office to see which Commissioners would be interested
             in doing so, and would get that scheduled. 
              b.  (01:15:53) Update on the Performance Audit Report of Port of Seattle
             Construction Management  Lessons Learned 
            Presentation documents: Commission agenda memorandum dated March 31, 2009 and
            computer slide presentation from Dakota Chamberlain, Director, Seaport Project
          Management 
             Presenter: Mr. Chamberlain 
            Prior to the presentation, Commissioner Tarleton commented that this presentation would
            be an opportunity to offer to the public an understanding of what has happened since the
             SAO audit, and changes in Port culture over the past 2-plus years. 
           Mr. Chamberlain provided background information on the 2007 SAO Performance Audit
            of the Port of Seattle Construction Management. He noted that as a result of the audit
            findings, there were 51 recommendations, including two overarching recommendations,
             which were to create the central procurement function at the Port and also to revise the

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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
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             Ports delegations of authority. It was noted that of the 51 recommendations, action has
            been taken on 47 of them. 
            Within the presentation, items addressed included: 
            Background 
             Lessons Learned 
              Preparing for an Audit 
              Communication with the SAO During an Audit 
              Responding to an Audit Report 
             Implementing Recommendations 
             Staff clarified that in a need to track hours spent responding the SAO audit, a separate
            account had been created to document the staff time spent on the response. 
            Mr. Chamberlain noted that staff will return to Commission in June to bring back the
            annual report on the SAO audit. 
                c.  (01:30:29) Briefing on Resolution No. 3605 
            Presentation documents: Commission agenda memorandum dated April 17, 2009 and
            computer slide presentation from Ralph Graves, Managing Director, Capital
           Development and Tom Barnard, Research and Policy Analyst 
             Presenters: Mr. Graves and Mr. Barnard 
            Mr. Barnard provided background on Resolution No. 3605 and its implementation, which
            was adopted by the Commission on August 26, 2008. 
             Mr. Graves reviewed specific issues related to: 
                 Background and Implementation of the Resolution 
                  Issues Related to the creation of the Resolution 
               Next Steps 
              d.  (01:54:44) Briefing on New Port Procedure for Engineer's Estimates 
            Presentation document: Commission agenda memorandum dated April 21, 2009 from
            Ralph Graves, Managing Director, Capital Development and proposed Engineers
            Estimate Procedure 
             Presenter: Mr. Graves 
            Mr. Graves presented background information on the proposed Engineers Estimate
            Procedure, which resulted from both the SAO audit and the McKay Investigation. He
            stated the complexity of the issue, and commented that state law had been reviewed as

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          TUESDAY, APRIL 21, 2009                             P. 8 
            well as best practices and Resolution No. 3605. The proposed procedure resulted, which
             would both preserve the ability of the staff to update the estimate during the bid period,
            and would also clarify the procedures with respect to public published range of estimated
              cost. 
                e.   (02:10:57) Briefing on Procedures for the Procurement of Personal and
              Professional Consulting Services (CPO-1) 
            Presentation documents: Commission agenda memorandum dated April 15, 2009 and
            computed slide presentation from Ralph Graves, Managing Director of Capital
            Development and Nora Huey, Director, Central Procurement Office 
             Presenter: Mr. Graves and Ms. Huey 
            Ms. Huey provided background of CPO-1, which came into effect in January, 2009,
            noting that it was implemented as a response to the SAO audit. She stated that it covers
             both the formation and administration of Port contracts. 
             It was noted that an extensive outreach had been done to provide training to staff
            regarding CPO-1, which also included an overlay of how it relates to Resolution 3605
           and EX-2. 
            Specific issues reviewed included: 
             Implementation 
              Areas of focus 
              Categories and Contract Types 
              Legal and Risk Management Involvement 
               Office of Social Responsibility Involvement 
             Next Steps 
            As to the difference between Personal and Professional contracts, Ms. Huey explained
             that Personal Services refers to professional or technical consulting services, not related
             to public works, and that Professional Services are related to public works, such as
             design, construction management, testing, or inspection. 
            Ms. Huey stated that by the end of the year, she would be returning to the Commission
             for the passing of a required Policy on the procurement of personal services. 
                 f.  (02:30:16) Briefing on Small Works Roster Resolution 
            Presentation documents: Commission agenda memorandum dated April 14, 2009, 
            computer slide presentation, and draft resolution from Ralph Graves, Managing Director,
            Capital Development Division and Nora Huey, Director, Central Procurement Office 
             Presenters: Mr. Graves and Ms. Huey 

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          TUESDAY, APRIL 21, 2009                             P. 9 
            Ms. Huey commented that the main reason for having a Small Works Roster process is to
             create a quick process by which the Port can hire construction contractors on projects that
             are less than $200,000. She reviewed the current Port process as well as recent changes
             to the process and also reviewed current legislation regarding Small Works contracts. 
            Reviewing the proposed Resolution, Ms. Huey noted that it would allow the following: 
               CPO to establish a process for maintaining the Small Works Roster 
              Preference to expand competition 
                Preference for written bids, but allowance for telephone bids 
               g.  (02:45:32) Briefing on Port Implementation of McKay Report
            Recommendations 
            Presentation documents: Commission agenda memorandum dated April 2, 2009 from
            Linda Strout, Deputy CEO; Craig Watson, Port General Counsel; and Ralph Graves,
            Managing Director, Capital Development, and computer slide presentation. 
             Presenters: Ms. Strout and Mr. Graves 
            Ms. Strout provided background information on the McKay Report (Report) and the team
            that was created to implement recommendations as a result of the Report. The
           recommendations included: 
              Implement a robust compliance program 
               Ensure all procurement processes comport with Port policy and state and federal
                 law 
               Increase Legal department involvement in procurement processes 
               Ensure Legal department involvement is appropriately documented 
              Centralize procurement document management system 
               Standardize project manual provisions 
                Include an enforceable audit provision in all contracts that survives termination of
                  the contract 
            Ms. Strout commented on the establishment of a Code of Conduct, and noted that input
             would be taken from Port staff and that there would also be a targeted external outreach
             for input. External groups would include the Municipal League and current and past
           Ethics Board members. Commissioners suggested that perhaps members of the Century
            Agenda panels and core customers should be included. Ms. Strout stated that staff would
             return to the Commission in the fall to share input received over the summer. 
              h.  (03:11:25) Update on Port of Seattle P olice Department 
            Presentation documents: Commission agenda memorandum dated April 9, 2009 and
            computer slide presentation from Port Police Chief Colleen Wilson 

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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
          TUESDAY, APRIL 21, 2009                             P. 10 

             Presenter: Chief Wilson 
            Chief Wilson spoke about a matrix within the department which had been created from a
            combination of previous reviews, including 
                Judge Carroll"s report on Internal Affairs Process 
              Seabold Group Report 
               Commission"s "Blue Ribbon Panel" 
              Loaned Executive Management Assistance Program (LEMAP) Assessment 
            She stated that the 2009 goal of the department was to comply with all recommendations
             included in the matrix. 
            Chief Wilson commented on the development of a Policy Manual which had been created
             based on policies closely aligned with national police best practices. 
             Regarding internal affairs, it was noted that significant progress has been made and that
            the number of formal investigations is down. 
            Chief Wilson commented on the department culture change plan, which incorporates the
             guiding principles of Integrity, Leadership and Accountability. She also spoke about
             updates to the department"s hiring process. 
            Chief Wilson introduced to the Commission the two Deputy Chiefs, Nancy McAllister
           and Rod Covey. 
           Commissioner Creighton commended the Port"s Police Department, acknowledging the
            positive changes implemented under Chief Wilson"s leadership. 
               8.   NEW BUSINESS 
            Trip Reports: 
            Commissioner Hara reported on recent trips, including to the Clean Air and Noise
            Conference at University of California, Davis and the recent Airports Council
             International (ACI) Conference, specifically the areas related to economics and financing. 
            Commissioner Davis reported on a trip to the Los Angeles Trans-Pacific Maritime
            Conference. 
            Commissioner Creighton spoke about his trip to the Trans-Pacific Maritime Conference
            in Los Angeles as well as his recent attendance at the Trade Development Alliance Study
            Mission to Abu Dhabi and Dubai. 

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          TUESDAY, APRIL 21, 2009                             P. 11 
           Commissioner Tarleton commented on her attendance at the Department of Homeland
            Security"s Annual Security Summit in Washington, D.C. 
            Commissioner Tarleton announced that there would be a Security Summit jointly hosted
            by the Ports of Seattle and Tacoma, held at Bell Harbor International Conference Center
           on May 28-29. 
               9.   POLICY ROUNDTABLES 
           None. 
        10. ADJOURNMENT 
            The special meeting was adjourned at 5:00 p.m. 
             (A digital recording of the meeting is available on the Port"s website.) 

           Lloyd Hara 
            Secretary 











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