Commission Meeting Portal

Regular Meeting on Jun 02, 2009 1:00PM

Minutes for the Port Of Seattle Commission meeting, held on Jun 02, 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 2, 2009 
                  The Port of Seattle Commission met in a special meeting at 12:00 p.m., Tuesday, June 2, 
                 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 12:05 p.m. by Bill Bryant, Chair and
                    President. 
                      2.       EXECUTIVE SESSION pursuant to RCW 42.30.110 
                   The regular meeting was immediately recessed for an executive session to discuss legal 
                  risk and public contract matters for approximately one hour and reconvened to open
                    public session. 
                 PLEDGE OF ALLEGIANCE 
                      3.       APPROVAL OF MINUTES 
                  (00:01:01) Motion for approval of the April 28, 2009 regular meeting minutes  
               Hara 
               Second: Tarleton 
                  Motion carried by the following vote: 

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            PORT COMMISSION MINUTES OF THE REGULAR MEETING 
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                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                       4.   SPECIAL ORDER OF BUSINESS 
                 None. 
                       5.   (00:01:55) UNANIMOUS CONSENT CALENDAR 
                      a.  Request for Port Commission determination that competitive solicitation is not
                      appropriate or cost-effective for procuring conflict resolution services (including
                     arbitrators, mediators, third-party arbitrators, dispute resolution board
                    members and hearing officers) and exempting such contracts from the
                   requirements of Chapter 53.19 RCW. 
                 Request document: Commission agenda memorandum dated May 14, 2009 from Ralph
                  Graves, Managing Director, Capital Development and Nora Huey, Director, Central
                 Procurement Office 
                     b.  Request for authorization for the Chief Executive Officer to advertise for
                     construction bids for the sixth site of the Trash Handling and Recycling System
                     project at Seattle-Tacoma International Airport for an additional amount of
                      $136,000 for a total project cost of $1,612,000. 
                 Request document: Commission agenda memorandum dated May 7, 2009 from Michael
                   Ehl, Director, Airport Operations; Robert F. Riley, Dire3ctor, Aviation Capital
                  Improvement Program; and Richard Ottele, General Manager, Aviation Facilities and
                    Infrastructure 
                       c.   Request for Commission ratification of the appointment of two new external
                    members of the Port's Art Oversight Committee, Cheryl do Remedios as "visual
                     art curator: and Genevieve Tremblay as "representative of the regional visual
                    arts community," in accordance with the Port's Art Program Policy and
                     Guidelines. 
                 Request document: Commission agenda memorandum dated May 27, 2009 from Colleen
                 McPoland, Aviation Art Program Manager and Keith Gillin, Manager, Architecture and
                  Standards 
                 Motion for approval of Unanimous Consent Calendar Items 5a  5c  Tarleton 
                 Second  Creighton 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 

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                       6.   DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
                   Commissioner Bryant suggested that, since the first three action items on the agenda were
                   inter-related, staff provide brief background on the items all at one time, and following
                   discussion of the items, votes would be taken. 
                   Presenters for Items 6a, 6b, and 6c: Elizabeth Morrison, Senior Manager, Corporate
                  Finance and Dick King, Barclays Capital. 
                      a.  (00:04:25) Resolution No. 3619, First Reading. Authorizing the issuance and
                     sale of Revenue Bonds, Series 2009A in the aggregate principal amount of not to
                     exceed $425,000. 
                 Request document: Commission agenda memorandum dated May 15, 2009 from
                  Elizabeth Morrison, Senior Manager, Corporate Finance 
                     b.  Resolution No. 3620, First Reading. Authorizing the issuance and sale of
                    Subordinate Lien Revenue Bond Anticipation Note, 2009 in the principal
                     amount of not to exceed $100,000,000. 
                 Request document: Commission agenda memorandum dated May 15, 2009 from
                  Elizabeth Morrison, Senior Manager, Corporate Finance 
                       c.   Resolution No. 3621, First Reading.  Authorizing the issuance and sale of CFC
                     Revenue Bond Anticipation Note, 2009 in the principal amount of not to exceed
                     $100,000,000. 
                 Request document: Commission agenda memorandum dated May 15, 2009 from
                  Elizabeth Morrison, Senior Manager, Corporate Finance 
                   Ms. Morrison commented that as part of the financing plan for the Rental Car Facility,
                   two principles that have remained constant are (1) to maintain the Port's solid financial
                   position, and (2) the plan must provide enough flexibility and redundancy so the Port can
                  respond appropriately to changing market conditions. 
                   She noted that staff had been in meetings with rating agencies the prior week, and that
                   ratings were expected to be received during the following week. 
                   Ms. Morrison stated that final credit approval from U.S. Ban had not yet been received
                  and that the process was taking longer than anticipated. Therefore, she recommended
                   delaying the First Reading of Resolution 3621, Item 6c, until credit approval is
                  confirmed. 
                   Mr. King provided a brief update on the current capital markets, including the treasure
                   market, the bonds market, and the credit markets. 

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                  Commission discussion followed noting the importance of the RCF project going
                   forward, but also noting their hesitance to move forward to restarting the project without
                    certainty of the financing. Commissioner Bryant stated specifically that he would prefer
                   to not move forward with the project until $295 million in bonds were sold. 
                  Regarding Resolution No. 3619, Ms. Morrison explained that it would include funding of
                   certain qualified costs associated with roadway improvements related to the Rental Car
                     Facility. 
                  Regarding Resolution No. 3620, Ms. Morrison explained that it would be structured as a
                   line of credit with the Bank of America. 
                 Motion for First Reading of Resolution No. 3619  Davis 
                 Second  Creighton 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                 Motion for First Reading of Resolution No. 3620  Tarleton 
                Second  Hara 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                  Resolution No. 3621, Item 6c  Item delayed to a future meeting 
                     d.  (00:48:56) Authorization for the Chief Executive Officer to complete 100%
                     design, plans and specifications; amend, execute and award outside professional
                     services agreements; and perform contract administration and execution for the
                     Bus Maintenance Facility as part of the Rental Car Facility Design (CIP
                     #C102617 project at the Airport for an additional $607,000, which brings the
                     total authorization to $6,018,330 and the total Rental Car Program
                     authorization to $329,953,676. 
                 Request document: Commission agenda memorandum dated May 17, 2009 from
                  Michael Ehl, Director, Airport Operations and George England, Program Leader,
                 Aviation Capital Improvement Program 
                   Presenters: Mr. England and Paul Grace, Senior Manager, Airport Operations, Landside 


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                   Mr. Grace stated that the bulk of the funds being requested were be to complete design
                   funds to 100% for the Compressed Natural Gas fueling facility to be built as part of the
                    overall Rental Car Facility and that part of the funds were related to the future site of the
                  Bus Maintenance Facility. Staff noted that this project is now the critical path item for
                   the entire Rental Car program. 
                   Mr. England clarified an error in the financial section of the memo (p.4), noting that the
                  budget change amount for the Consolidated Rental Car Facility should read $51,300
                   rather than $6,300. 
                  Following discussion on whether or not there should be a $60,000 cap on spending prior 
                  June 23, the following motion was made: 
                 Motion for approval of Item 6d  Davis 
                 Second  Tarleton 
                  Commissioner Davis then withdrew her motion, as it was not clear to all whether or not
                   the motion included the caveat to include a $60,000 spending cap. 
                  Motion for approval of Item 6d, as written  Davis 
                 Second - Creighton 
                 Motion for approval of Item 6d  Davis 
                 Second  Creighton 
                  Motion carried by the following vote: 
                 In Favor: Creighton, Davis, Hara, Tarleton (4) 
               Opposed: Bryant (1) 
                  Commissioner Bryant opposed proceeding with the project design prior to the
                   Commission deciding whether or not to restart the project and prior to the rating of the
                   bonds that would finance the project's resumption. 
                       e.   (01:06:35) Authorization for the Chief Executive Officer to advertise fo r
                     construction bids, award the contract, and construct the 4th floor walkway
                     within the terminal parking garage to provide access to the Sound Transit
                     Airport Station, as part of the Fourth Floor Improvements Project for an
                      additional $2,014,000 bringing the total project authorization to $8,991,000. 


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                 Request document: Commission agenda memorandum dated May 14, 2009 from
                  Michael Ehl, Director, Airport Operations and George England, Program Leader,
                 Aviation Project Management 
                   Presenters: Mr. England and Paul Grace, Senior Manager, Airport Operations, Landside 
                   Staff provided background of the walkway project, noting that it was part of an obligation
                   with Sound Transit to enable link light rail to begin by the end of 2009. 
                  Responding to Commissioner Tarleton's question about the final 4th Floor Improvements
                  Project cost, which would include both the pedestrian bridge and the pedestrian walkway
                   connection, Mr. England stated the final cost was anticipated to be up to $8,991,000. 
                 Motion for approval of Item 6e  Tarleton 
                 Second  Davis 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton 
                       f.   (01:17:33) Resolution No. 3617, First Reading, and Public Hearing.  (1)
                    Declaring surplus nine parcels of Port-owned Property needed by Washington
                    State Department of Transportation (WSDOT) for future SR-509 expansion to I-
                    5 and authorizing transfer of said parcels to WSDOT in exchange for WSDOT
                     Properties and certain airspace leases needed for current and future Aviation
                      projects, and (2) Authorizing the Chief Executive Officer to enter into a longterm
                      ground lease for a total of 6.16 acres in the vicinity of Tyee Valley Golf
                    Course. 
                 Request document: Commission agenda memorandum dated May 15, 2009 and
                  computer slide presentation from James R. Schone, Director, Aviation Business
                 Development and W. Allan Royal, Manager, Port Real Estate Development. Also
                  provided was a copy of the exchange agreement. 
                   Presenter: Mr. Royal 
                  Mr. Royal noted that the Commission had been briefed on the details of the land
                  exchange at the May 12 Commission meeting, and reiterated that it had been a lengthy
                    very complicated process. He stated that at a high level, it involved trading properties at
                  the south end of the Airport with WSDOT for properties predominantly near the north
                    end of the Airport for various projects. 
                  Pursuant to Notice of Public Hearing published on May 19, 2009 in the Daily Journal of
                 Commerce, Commissioner Bryant declared the meeting a public hearing. There were no
                  comments from the public and the public hearing was closed. 

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                 Motion for First Reading of Resolution No. 3617  Hara 
                 Second  Davis 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                   Following a brief discussion, it was decided that the second part of the request  
                   authorizing the Chief Executive Officer to enter into a long-term ground lease for a total
                  of 6.16 acres in the vicinity of Tyee Valley Golf Course  would be voted on at Second
                  Reading and Final Passage of the Resolution. 
                      g.  (01:29:28) Resolution No. 3622, First Reading. Authorizing the acquisition by
                     purchase and/or condemnation of certain real property located at 14635 Des
                   Moines Memorial Drive South (King County Tax ID Number 202304-9091),
                    commonly known as Steven Desimone property, in Burien. 
                 Request document: Commission agenda memorandum dated March 30, 2009 from
                  James R. Schone, Director, Aviation Business Development and Jude P. Barrett,
                  Manager, Acquisitions and Relocation 
                   Presenter: Mr. Barrett 
                  Mr. Barrett provided background information of the possible condemnation of the
                   Desimone property, noting that the property is located in the Airport's North Approach
                   Transition Zone (ATZ), and is noise-impacted by aircraft operations. 
                   It was clarified that Second Reading and Final Passage of this Resolution may not be
                   necessary, as a First Reading may provide impetus for the property owner to settle with
                   the Port prior to a condemnation action. If a Second Reading and Final Passage does
                   become necessary, staff would intend to have that item placed on the June 23 agenda. 
                 Motion for First Reading of Resolution No. 3622  Tarleton 
                 Second  Creighton 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                     h.  (01:35:50) Authorization to increase the authorized budget for T -115 Berth 1
                    improvements by $6,431,410 to pre-purchase material, and to advertise, award
                     and construct improvements for a total new authorization of $35,219,410. 

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                 Request document: Commission agenda memorandum dated May 11, 2009 from Scott
                  Pattison, Manager, Industrial Properties and Business Development and Mike Kuhlmann,
                  Capital Project Manager 
                   Presenters: Mr. Pattison and Mr. Kuhlmann 
                   Staff presented background information on Terminal 115, stating that the issue at hand
                   stems back to 2003, when Northland Terminal Services, Inc. entered into a term lease at
                   the terminal. Details of the planned improvements project were reviewed. 
                   Commissioner Tarleton stressed the need for ongoing inspection of the Port's piers for
                   preventive maintenance, not only when there is a crisis needing attention. 
                 Motion for approval of Item 6h  Davis 
                 Second  Creighton 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                       i.   (01:51:29) Authorization  to (1) Increase the authorized budget for T-91 by
                     $165,000 for a new total authorization of $1,026,000 to cover additional project
                      cost, and (2) Expand the existing project scope to include a new forklift ramp at
                      the south east portion of the W-40. 
                 Request document: Commission agenda memorandum dated April 30, 2009 from Rod
                  Jackson, Capital Project Manager 
                   Presenters: Mr. Jackson and Dakota Chamberlain, Director, Seaport Project Management 
                  Mr. Chamberlain noted that due to unforeseen building conditions and operational
                   concerns, project costs have exceeded the previous authorization, resulting in this request
                    for additional funding for the project. He also reviewed lesson learned, and spoke of a
                  new budget report which was developed, which will alert project managers when there is
                   less than 20% of a project budget remaining. 
                 Motion for approval of Item 6i  Tarleton 
                 Second  Davis 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 


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                       j.   (01:59:15) Authorization for the Chief Executive Officer to conduct Category
                     III procurement processes for IDIG (Indefinite Delivery, Indefinite Quantity)
                     contract, and execute all contracts, service directives and amendments for
                     graphic design services to maintain the Port's graphic identity, support brand
                   standards and messages, and support customer marketing and communications
                     strategies, internal communications and signage needs for a period of up to three
                     years, for an approximate value of $366,000 per year, for a total estimated
                    procurement amount of up to $1,200,000. 
                 Request document: Commission agenda memorandum dated May 18, 2009 from Jane
                  Kilburn, Director, Public Affairs and Nancy Blanton, Manager, Corporate
                Communications 
                   Presenter: Ms. Blanton 
                  Ms. Blanton commented on the importance of maintaining a graphic identity, which is a
                   type of 'branding,' and is very important in maintaining effective and consistent
                 communications. 
                 Motion for approval of Item 6j  Davis 
                Second  Hara 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                       7.   STAFF BRIEFINGS 
                 None. 

                       8.   NEW BUSINESS 
                  Public comment was received from the following individual: 
                   Robert Scheuerman. Mr. Scheuerman stated that he hoped the Port would soon
                          find an opportunity to issue bonds for the purchase of the Eastside Lake
                         Washington Rail Line. 

                       9.   POLICY ROUNDTABLE 
                 None. 

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            10. ADJOURNMENT 
                   There being no further business, the meeting was adjourned at 3:10 p.m. 
                   (A digital recording of the meeting is available on the Port's website.) 

                 Lloyd Hara 
                   Secretary 















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