Commission Meeting Portal

Regular Meeting on May 12, 2009 1:00PM

Minutes for the Port Of Seattle Commission meeting, held on May 12, 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 MAY 12, 2009 
                  The Port of Seattle Commission met in a special meeting at 12:00 p.m., Tuesday, May
                 12, 2009 in the Commission Chambers at Pier 69, 2711 Alaskan Way, Seattle, WA.
                  Commissioners Bryant, Creighton, Davis, Hara and Tarleton were present. 
                      1.       CALL TO ORDER 
                   The special meeting was called to order at 12:30 p.m. by Bill Bryant, Chair and
                    President. 
                      2.       EXECUTIVE SESSION pursuant to RCW 42.30.110 
                   The special meeting was immediately recessed for an executive session to discuss legal 
                   and real estate issues and reconvened to open public session. 
                 PLEDGE OF ALLEGIANCE 
                      3.       APPROVAL OF MINUTES 
                  (00:00:57) Motion for approval of the April 21, 2009 special meeting minutes  
               Hara 
               Second: Davis 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 

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                       4.   SPECIAL ORDER OF BUSINESS 
                 (00:01:38) Recognition of Port Awards 
                          1.  Airport Revenue News Best Concessions Program in a Large Airport 
                          2.  Public Relations Society of America/Puget Sound Chapter  Totem Award 
                          3.  Police Officer of the Year  Officer Herb Gonzales 
                          4.  Firefighter of the Year  Tom Sanchez 
                   Port staff members were recognized for their participation; awards were presented; and
                  photographs were taken of recipients with Commissioners. 
                       5.   (00:14:44) UNANIMOUS CONSENT CALENDAR 
                      a.  Approval of outstanding Claims and Obligations for the period of April 1
                     through April 30, 2009 in the amount of $38,471,042.75. 
                     b.  Request for authorization for the Chief Executive Officer to enter into an
                    agreement with insurance brokerage firms for the purposes of procuring
                     property and casualty insurance for the Port at an estimated cost of $790,000
                      over a three-year period. 
                 Request document: Commission agenda memorandum dated April 22, 2009 from Jeff
                 Hollingsworth, Risk Manager 
                       c.   Request for authorization for the Chief Executive Officer to enter into Indefinite
                     Delivery, Indefinite Quantity (IDIQ) contracts for geotechnical and underwater
                     diving services to be used to support Seaport, Real Estate, Aviation and Capital
                     Development Divisions Service Directives. IDIQ contract for the services will
                     not exceed $500,000 each for geotechnical and underwater diving, for a total
                    Not-to-Exceed amount of $1,000,000. 
                 Request document: Commission agenda memorandum dated April 22, 2009 from Mark
                  Longridge, Capital Project Manager 
                     d.  Authorization for the Chief Executive Officer to extend the existing Main Lease 
                    of the Transportation Security Administration (TSA), represented and
                     negotiated by the United States General Services Administration (GSA). 
                 Request document: Commission agenda memorandum dated April 13, 2009 from James
                  R. Schone, Director, Aviation Business Development and Luis Navarro, Manager,
                   Aviation Properties 
                       e.   Request for the Chief Executive Officer to approve and execute easements with
                     the City of Seattle Department of Transportation, substantially in the form

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                     shown in Exhibit A, for the installation and maintenance of certain equipment
                     necessary for a Dynamic Message Sign providing current traffic information to
                     trucks leaving Terminal 5. 
                 Request document: Commission agenda memorandum dated April 28, 2009 from Eric
                  Hanson, Manager, Seaport Planning and Christine Wolf, Regional Transportation
                Program Manager 
                 Motion for approval of Unanimous Consent Calendar Items 5a  5e  Tarleton 
                Second: Davis 
                  Motion carried by the following vote 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                       6.   DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
                      a.  (00:16:08) Request for authorization for the Chief Executive Officer to enter
                    into an agreement with SSA Terminals (Seattle), LLC (SSAT), the Terminal 30
                     tenant, to reimburse certain costs associated with making its container cranes
                      operational at the Terminal 30 site. The agreement amount will not exceed
                     $400,000, and it is expected the cost would be reimbursed to SSAT through rent
                        credits. 
                 Request document: Commission agenda memorandum dated May 6, 2009 from Ralph
                  Graves, Managing Director, Capital Development Division and Michael Burke, Senior
                  Manager, Container Leasing and Operations 
                   Presenters: Ralph Graves, Managing Director, Capital Development Division; Mike
                  Burke, Senior Manager, Container Leasing and Operations; and Charlie Sheldon,
                  Managing Director, Seaport Division 
                  Mr. Sheldon provided information related to the opening of the new Smith Cove Cruise
                   Terminal at Pier 91, as well as a computer slide presentation showing photographs of the
                  opening. 
                  Mr. Graves commented on the briefing provided to the Commission at the May 5, 2009
                  Commission meeting regarding crane power cable at Terminal 30, which was not the
                   appropriate diameter to fit into a cable trough running the length of the terminal.
                  Alternatives regarding a solution to the problem were noted, and a recommended course
                   of action was suggested by staff. 
                  Motion for approval of item 6a, with the caveat that staff investigate the cause of the
                  error and the parties responsible, and return to discuss same with Commission, in 
                  Executive Session, if appropriate - Creighton 

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                Second  Hara 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                  Commissioner Creighton was excused from the meeting to attend a press conference at
                  which Governor Gregoire would be signing legislation committing funds from the state to
                  the building of the bored tunnel, which would replace the Alaskan Way Viaduct. 
                       7.   STAFF BRIEFINGS 
                      a.  (00:31:35) Briefing on Consolidated Rental Car Facility (CRCF) Financing. 
                  Presentation documents: Commission agenda memorandum dated May 12, 2009 and
                  computer slide presentation from Elizabeth Morrison, Senior Manager, Corporate
                  Finance 
                   Presenters: Ms. Morrison, Jim Schone, Director, Aviation Business Development and
                 Management, Dick King, Barclay's Capital, and George England, Capital Program
                 Leader, Aviation Project Management Group 
                  Updated information on CRCF financing was provided reflecting information since staff
                  presented to the Commission one year ago. Briefing information included: 
                       Business context for Airport traffic forecast 
                      Transaction day forecast analysis 
                     Financial market update 
                      Rental Car Facility financing plan 
                    Project Update 
                     Process and schedule 
                   Mr. King presented updated information on the current state of the market, noting that the
                  market has improved over the last four months. 
                  Mr. England provided a historical background of the CRCF project, including the
                  decision to suspend the project, which was made in December, 2008. It was noted that
                    currently, staff is anticipating a restart of the project sometime in July, and estimating an
                   opening of the facility during second quarter of 2012. 
                   Mr. England stated that the critical path for the schedule is not actually the CRCF, rather
                    it is related to the Bus Maintenance Facility, and that it is a priority of staff to obtain
                   authorization for additional design funds to incorporate the natural gas fueling facility
                   into the Bus Maintenance Facility design and construction. 

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                  Commissioner Creighton returned to the meeting and was present for the remaining time. 
                  Ms. Morrison stated that staff would be meeting with the rating agencies soon and would
                  then return to Commission for First and Second Readings of resolution for the bonds and
                   bank loans. 
                  Public comment regarding Item 7a was received from the following individuals: 
                      Lorie Tallarico, Rental Car Industry Committee Chair. Ms. Tallarico spoke in
                         support of the proposed finance plan and urged the Commission to proceed with
                             the project. 
                     Jack Beaudoin, Turner Construction. Mr. Beaudoin spoke in favor of the
                          financing plan and commented that restarting the project is a good opportunity for
                            the Port to work to restore jobs. 
                     Lee Newgent, Seattle Building Trades. Mr. Newgent spoke in support of the
                          CRCF project, and stated that Seattle Building Trades is ready to move forward. 
                     Jerry Dinndorf, Associated General Contractors (AGC). Mr. Dinndorf stated his
                         strong support of restarting the CRCF project and commented on the importance
                          of providing needed jobs. 
                     b.  (02:07:11) Terminal 91 Neighbors Advisory Committee NAC 2008 Annual
                   Report 
                  Presentation documents: Commission agenda memorandum dated March 27, 2009 from
                 Marie Fritz, Manager, Cruise Services & Business Development, and 2008 NAC Annual
                  Report 
                   Presenters: Ms. Fritz and Bruce Laing, Chair, NAC 
                  Mr. Laing thanked the Commission for their ongoing support of the NAC, and also
                  commented on concerns of the committee, which included the worry about a viaduct
                   having negative impacts on Port operations, specifically the new cruise terminal in the
                 NAC area. 
                  Commissioner Bryant was excused from the meeting from this point forward in order to
                   attend a Transportation and Freight Mobility event. 
                  Item 7d was advanced on the agenda as follows: 
                     d.   (02:25:37) Briefing on the Port's Small Business Program and Proposed
                 Resolution 
                  Presentation documents: Commission agenda memorandum dated May 6, 2009,
                   computer slide presentation, and draft resolution from Elaine Ko, Director, Office of
                   Social Responsibility 
                   Presenter: Ms. Ko 

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                  Along with providing commentary on the substance of the proposed resolution regarding
                  the Port's small business program, Ms. Ko provided background of involvement of the
                    Office of Social Responsibility over the past year, as well as goals for the future of the
                  small business program. 
                  Public comment regarding Item 7d was received from the following individuals: 
                     Ralph Ibarra, Diverse America Network. Mr. Ibarra stated his support of steps the
                          Port is taking regarding working with small businesses. He also commented on
                           the importance of veteran business enterprises. 
                      Buzz Desjarlais, Warrior Electric. Mr. Desjarlais also spoke in support of efforts
                          being made by the Port related to small business. 
                    Dan Seydel, Platinum Group, LLC. Mr. Seydel commended Ms. Ko for her work
                          on the proposed resolution and spoke in support of efforts being made to work
                          with small businesses. He voiced concern about not the intent of the policy, but
                         the implementation. Mr. Seydel submitted a copy of a letter to Port 
                         Commissioners and CEO Yoshitani, dated May 12, 2009 as well as a copy of a
                         brochure reviewing Platinum Group services. Copies of these documents are by
                          reference, made a part of these minutes, are collectively marked Exhibit 'A,' and
                             are on file in Port offices. 
                    Karen Primeau, Platinum Group, LLC. Ms. Primeau spoke in support of the
                          proposed resolution, and also commented on the importance of it being a Portwide
                           effort, and not only the Office of Social Responsibility. A copy of a letter to
                        Port Commissioners and CEO Yoshitani, dated May 12, 2009, was submitted by
                          Ms. Primeau; is by reference, made a part of these minutes; is marked Exhibit 'B,'
                             and is on file in Port offices. 
                      Larry Rushing, Applied Professional Services. Mr. Rushing commented that he
                           believed the Airport had a better understanding of available contracts than the
                          Seaport Division, and noted an instance where payment of services took longer
                           than he felt was necessary. 
                      George Pieper, Greater Seattle Business Association. Mr. Pieper spoke in support
                           of the Port increasing opportunities for small businesses. 
                    Cos Roberts, Tabor 100. Mr. Roberts spoke in support of the work being done by
                        Ms. Ko. 
                       c.    (03:26:19) Briefing on the proposed Washington State Department of
                 Transportation (WSDOT)  Port of Seattle land exchange and leases for Aviation
                  projects and the extension of SR-509. 
                  Presentation documents: Commission agenda memorandum dated April 27, 2009 and
                  computer slide presentation from James R. Schone, Director, Aviation Business
                 Development and W. Allan Royal, Manager, Port Real Estate Development. 
                   Presenters: Mr. Schone and Mr. Royal 

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                 Mr. Schone noted that Ms. Susan Everett from WSDOT was present in the audience and
                  would be available to answer any questions from WSDOT's perspective if requested. 
                  Mr. Royal provided background information on the details of the proposed land exchange
                    transaction, and benefits to both parties. 
                  Commissioner Tarleton stated that when staff returns to Commission for First Reading of
                   the Resolution allowing the land exchange, it would be helpful for the record, to include 
                   within the memo, the values of all of the properties involved in the exchange. 
                  Commissioner Tarleton was excused from the meeting from this point forward. 
                  Ms. Everett stated that WSDOT was strongly in support of the proposed Resolution for
                  the land exchange. 
                       8.   NEW BUSINESS 
                  Prior to adjournment, Commissioner Creighton reported on his earlier attendance at the
                   bill-signing ceremony related to the deep bored tunnel replacement of the viaduct.
                       9.   POLICY ROUNDTABLE 
                 None. 
            10. ADJOURNMENT 
                   There being no further business, the meeting was adjourned at 4:57 p.m. 
                   (A digital recording of the meeting is available on the Port's website.) 

                 Lloyd Hara 
                   Secretary 






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