Commission Meeting Portal

Regular Meeting on Jun 09, 2009 1:00PM

Minutes for the Port Of Seattle Commission meeting, held on Jun 09, 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 9, 2009 
                  The Port of Seattle Commission met in a regular meeting at 1:00 p.m., Tuesday, June 9, 
                 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 regular meeting was called to order at 1:00 p.m. by Bill Bryant, Chair and President.
                  In accordance with RCW 42.30.90, the meeting was immediately adjourned, due to
                   lingering fumes at Pier 69 caused by a small fire near the building earlier in the day. The
                  meeting was reconvened at 1:15 in the Sound Room on the 3rd Floor of Bell Harbor
                  Conference Center, 2211 Alaskan Way, Seattle, 98121. 
                      2.       EXECUTIVE SESSION pursuant to RCW 42.30.110 
                 None. 
                 PLEDGE OF ALLEGIANCE 
                      3.       APPROVAL OF MINUTES 
                 (00:01:13) Motion for approval of minutes of the April 30 Special Joint Meeting
                 with the Port of Tacoma and the May 5 Special Meeting  Hara 
                 Second - Tarleton 

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            PORT COMMISSION MINUTES OF THE REGULAR MEETING 
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                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                       4.   SPECIAL ORDER OF BUSINESS 
                 None. 
                       5.   (00:01:54) UNANIMOUS CONSENT CALENDAR 
                 Commissioner Bryant noted that Item 5c would be removed from the Consent Calendar
                   for discussion and a separate vote. 
                      a.  Authorization for approval or of outstanding Claims and Obligations for the
                     period of May 1 through May 31, 2009 in the amount of $43,252,689.11. 
                     b.  Authorization for the Chief Executive Officer to increase scope to include
                     construction of an underground infrastructure connection as part of the runway
                     16L/34R reconstruction project, for an estimated cost of $60,000; and to use the
                     active Icon Materials contract for the runway 16L/34R reconstruction to
                    complete this work within the current authorized budget and reimbursable by
                    the FAA. 
                 Request document: Commission agenda memorandum dated May 22, 2009 from
                   Michael Ehl, Director, Airport Operations and Robert F. Riley, Director, Aviation Capital
                Improvement Program 
                     d.   Authorization for the Chief Executive Officer to advertise and execute a group
                 of ID/IQ (Indefinite Quantity/Indefinite Delivery) Service Agreements to support
                 the seven scopes of work for the Engineering Department. 
                 Request document: Commission agenda memorandum dated May 12, 2009 from
                  Raymond P. Rawe, Director, Engineering Services 
                       e.    Authorization for Port General Counsel to enter into a Stipulation for
                 Immediate Use and Possession of Port property being condemned by the City of Des
                 Moines for a proposed misdemeanant correctional facility. 
                 Request document: Commission agenda memorandum dated May 6, 2009 from Diane
                 Summerhays, Director, Aviation Community Development and Craig R. Watson,
                 General Counsel 
                 Motion for approval of Consent Calendar Items 5a, 5b, 5d, and 5e  Tarleton 
                 Second  Davis 

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            PORT COMMISSION MINUTES OF THE REGULAR MEETING 
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                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                       c.   (00:02:37) Authorization for the Chief Executive Officer to enter into individual
                     Indefinite Delivery/Indefinite Quantity (IDIQ) contracts for Real Estate
                    Services, Cranes, Docks, Buildings, Infrastructure and Project Management
                     services to be used to support Seaport, Real Estate, Aviation and Capital
                     Development Divisions' Service Directives. Total amount for all contracts will
                     not exceed $5,000,000. This action authorizes forming "empty" contracts; funds
                     for work under the contracts will be approved as part of Operating Budgets or
                      on a project basis 
                 Request document: Commission agenda memorandum dated May 19, 2009 from Mark
                  Longridge, Capital Project Manager 
                   Presenter: Mr. Longridge 
                  Mr. Longridge provided a background of the projects included within the request, noting
                  that there were 6 contracts included ranging from $250,000 to $750,000 and referenced
                  the commission memo for a breakdown of the specific contracts. Responding to
                  questions from Commissioner Hara about small businesses, Mr. Longridge stated that for
                   each of the contracts, small business subcontracting ability analysis worksheets are
                   completed with the Office of Social Responsibility, so they are involved in each
                  procurement. 
                   Responding to Commissioner Tarleton's question, staff clarified that this was not a
                   request for funding approval, but rather a request for approval of a contract vehicle
                     structure. 
                 Motion for approval of Item 5c  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.  (00:08:43) Request to amend Resolution No. 3619, Second Reading and Final
                    Passage, as amended. Authorizing the issuance and sale of Revenue Bonds,
                     Series 2009A and Series 2009B in the aggregate principal amount of not to
                     exceed $425,000,000. 


                       June 9 RM Min

            PORT COMMISSION MINUTES OF THE REGULAR MEETING 
              TUESDAY, JUNE 9, 2009                                             P. 4 
                 Request document: Commission agenda memorandum dated June 4, 2009 from
                  Elizabeth Morrison, Senior Manager, Corporate Finance 
                   Presenter: Ms. Morrison 
                  Ms. Morrison addressed both Items 6a and 6b simultaneously at the request of the
                Commission.
                  Ms. Morrison provided information on Port ratings received since First Reading of the
                   resolutions on June 2. Moody's confirmed the Aa2 rating on the Port's First Lien and
                  Standard and Poor's confirmed the AA- rating. She noted that a rating from Fitch was
                   anticipated the following day. 
                   Staff noted that they would plan to return to the Commission on June 23 with two related 
                    items, those being a request for authorization to restart the Rental Car Facility Project;
                  and a request to amend Resolution No. 3599, which sets the CFC rates and describes the
                   parameters under which staff can adjust the rate without further Commission action. 
                 Regarding recommended amendments to Resolution 3619, Ms. Morrison explained that
                  changes would be mainly administrative in nature to add clarity that some bonds may be
                  issued as Capital Appreciation Bonds and that the only material amendment would be
                    setting of delegation parameters, limiting the size and interest rate, and that staff cannot
                  exceed the limitations without further Commission action. 
                 Motion to amend Resolution No. 3619  Davis 
                 Second  Tarleton 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                 Motion for Resolution No. 3619, Second Reading and Final Passage, as amended  
                 Davis 
                 Second  Tarleton 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                     b.  (00:17:07) Resolution No . 3620, Second Reading and Final Passage.
                    Authorizing the issuance and sale of Subordinate Lien Revenue Bond
                     Anticipation Note, 2009 in the principal amount of not to exceed $100,000,000. 


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            PORT COMMISSION MINUTES OF THE REGULAR MEETING 
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                 Request document: Commission agenda memorandum dated June 4, 2009 from
                  Elizabeth Morrison, Senior Manager, Corporate Finance 
                   Presenter: Ms. Morrison 
                 Motion for Resolution No. 3620, Second Reading and Final Passage  Hara 
                 Second  Tarleton 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                       c.   ITEM WITHDRAWN Resolution No. 3621, First Reading.  Authorizing the
                     issuance and sale of CFC Revenue Bond Anticipation Note, 2009 in the principal
                     amount of not to excel $100,000,000. 
                     d.  (00:27:27) 1) Resolution No. 3617, Second Reading and Final Passage.
                     Declaring surplus and no longer needed for Port purposes, nine parcels of Portowned
                    real property located in SeaTac, Washington, which are needed by
                   Washington State Department of Transportation (WSDOT) for future SR509
                     expansion to Interstate 5 and authorizing transfer of said parcels to WSDOT in
                    exchange for ESDOT Properties and certain airspace leases needed for current
                     and future Aviation projects; and 2) Authorization for the Chief Executive
                      Officer to enter into a long-term ground lease for a total of 6.16 acres in the
                      vicinity of the Tyee Valley Golf Course. 
                 Request document: Commission agenda memorandum dated June 3, 2009 from James R.
                  Schone, Director, Aviation Business Development and W. Allan Royal, Manager, Port
                  Real Estate Development. 
                   Presenter: Mr. Royal 
                 Motion for Resolution No. 3617, Second Reading and Final Passage  Creighton 
                 Second  Tarleton 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                  Motion for approval of authorization for the Chief Executive Officer to enter into a
                  long-term ground lease for a total of 6.16 acres in the vicinity of the Tyee Valley
                 Golf Course  Davis 
                Second  Hara 

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            PORT COMMISSION MINUTES OF THE REGULAR MEETING 
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                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                       e.   (00:37:40) Authorization for the Chief Executive Officer to execute an Agreed
                    Order with the Washington Department of Ecology, issued under the Model
                    Toxics Control Act (MTCA), for environmental investigation of and evaluation
                    of remediation methods for the Lora Lake Apartments property. 
                 Request documents: Commission agenda memorandum dated May 1, 2009 from
                  Elizabeth Leavitt, Director, Aviation Environmental Programs and Paul Agid,
                 Environmental Program Supervisor, Aviation Environmental Programs and copy of
                 Agreed Order. 
                   Presenters: Ms. Leavitt and Mr. Agid 
                  Mr. Agid commented on the history of the contamination at the Lora Lake property from
                  the 1940's through the 1980's. He noted that the Department of Ecology (DOE) will
                   oversee the actions of the Port in accord with an agreed scope of work. He noted
                   principal elements of the scope of work were to protect the property in order to avoid
                  migration of contaminants during the structure demolition; develop a summary report of
                   existing data and identify any data gaps; develop a plan for remedial investigation;
                  determine a method of remediation; and enter into a Public Participation Plan with DOE. 
                   Mr. Agid stated that it was anticipated that there would be a second Agreed Order issued
                   in the future, which would cover the actual detail planning for, and implementation of,
                   the site remediation. He commented that by that time it was hoped that the Port and the
                   City of Burien would have a cooperative redevelopment plan for the site. 
                  Public comment regarding Item 6e was received from the following: 
                     David South, Washington State DOE, Lora Lake site manager. Mr. South noted
                          that there will be an extensive public comment period, which would begin a few
                          days after the Agreed Order was signed. 
                 Motion approval of Item 6e  Tarleton 
                Second  Hara 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                       f.   (01:02:42) Authorization for 1) transmittal of the Port of Seattle's State
                   Auditor's Office (SAO) Annual Report Summary for the Performance Audit

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            PORT COMMISSION MINUTES OF THE REGULAR MEETING 
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                    Report, Port of Seattle Construction Management from the Chief Executive
                    Officer (CEO) to the Port Commission; and 2) Authorization for the
                     Commission President to submit the report to the State Auditor's Office (SAO) 
                    as required by RCW 43.09.470. 
                 Request documents: Commission agenda memorandum dated April 27, 2009 from
                  Dakota Chamberlain, Director, Seaport Project Management; draft SAO Report 
                 Summary; and copy of CEO letter to Port Commission. 
                   Presenter: Mr. Chamberlain 
                  Mr. Chamberlain provided a brief background of the SAO 2007 performance audit of the
                  Port's capital Construction Management, and the areas which had been addressed. He
                   stated that the final report in response to the audit would be delivered to the SAO prior to
                    the July 1 deadline. 
                 Motion for approval of Item 6f  Hara 
                 Second  Davis 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                      g.  (01:21:00) Authorization for the Chief Executive Officer to execute a new
                    Collective Bargaining Agreement between the International Brotherhood of
                     Teamsters Local Union No. 117 representing Credential Specialists. 
                 Request documents: Commission agenda memorandum dated April 1, 2009 from David
                  Leon, Labor Relations Manager and Gary Schmitt, Labor Relations Director 
                   Presenter: Mr. Leon 
                 Motion for approval of Item 6g  Tarleton 
                Second  Hara 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                       7.   STAFF BRIEFINGS 
                          a.  (01:22:41) Bri efing on Capital Improvement Projects Report for the First
                       Quarter 2009 

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            PORT COMMISSION MINUTES OF THE REGULAR MEETING 
              TUESDAY, JUNE 9, 2009                                             P. 8 
                  Presentation documents: Commission agenda memorandum dated May 22, 2009 from
                   Ralph Graves; computer slide presentation; and report. 
                   Presenter: Mr. Graves 
                   Mr. Graves provided a briefing of the status of Capital Improvement Projects for all
                   divisions within the Port. He noted that of 84 projects listed in the report, 35 projects are
                   within or ahead of target schedule and budget; 46 have either a target schedule or budget
                   off; and 3 have both schedule and budget off. 
                   It was also noted that the Quarterly reports are available online under the Accountability
                  site and are also linked to Commission agendas and minutes. 
                       8.   NEW BUSINESS 
                 None. 
                       9.   POLICY ROUNDTABLE 
                 None. 
            10. ADJOURNMENT 
                   There being no further business, the meeting was adjourned at 2:50 p.m. 
                   (A digital recording of the meeting is available on the Port's website.) 

                 Lloyd Hara 
                   Secretary 







                       June 9 RM Min