Commission Meeting Portal

Regular Meeting on Jul 28, 2009 1:00pm

Minutes for the Port Of Seattle Commission meeting, held on Jul 28, 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.) 
                 REVISED APPROVED MINUTES (September 17, 2009) 
                COMMISSION REGULAR MEETING JULY 28, 2009 
                                 (Revision to vote on Item 6c) 

            The Port of Seattle Commission met in a special meeting at 12:00 p.m., Tuesday, July 28,
            2009 in the International Conference Center, Airport Office Building, Seattle-Tacoma
             International Airport, Seattle, WA. Commissioners Bryant, Creighton, Davis, Hara and
            Tarleton were present. 
               1.     CALL TO ORDER 
            The special meeting was called to order at 12:00 p.m. by Bill Bryant, Chair and
             President. 
               2.     EXECUTIVE SESSION pursuant to RCW 42.30.110 
            The regular meeting was immediately recessed to an executive session to discuss Legal
            Risk issues for approximately one hour and reconvened to public session. 
           PLEDGE OF ALLEGIANCE 
               3.     APPROVAL OF MINUTES 
            (00:01:12) Motion for appro val of the minutes of the special meeting of June 30,
           2009 - Hara 
           Second  Tarleton 

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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.   (00:01:50) UNANIMOUS CONSENT CALENDAR 
            It was noted that Item 5c would be removed from the unanimous consent calendar for
             discussion and a separate vote. 
               a.  Authorization for the Chief Executive Officer to enter into an IDIQ contract for
              Baggage Handling Design services to be used to support projects Port-wide. The
               total amount for this contract will not exceed $3 million. Funds for work under
              the contract will be approved on a project-by-project basis or as part of
             Operating budgets. 
           Request document: Commission agenda memorandum dated July 2, 2009 from Ed
            Weitz, Capital Project Manager 
              b.  Authorization for the Chief Executive Officer to advertise for and enter into one
             or two IDIQ contracts for regulated materials management (RMM) consultant
              services to support Aviation, Seaport, Real Estate and Capital Development
              Division project needs. The IDIQ contracts will not exceed $500,000 for each
              contract for a total amount not to exceed $1 million. 
           Request document: Commission agenda memorandum dated July 13, 2009 from Ralph
            Graves, Managing Director, Capital Development Division 
                c.  Item removed from consent calendar for a separate vote. 
              d.  Authorization for the Chief Executive Officer to execute all necessary documents
              to acquire by purchase a portion of the private roadway (Property) owned by
             Washington Memorial Park and located off International Boulevard and South
              160th Street in SeaTac, Washington 
           Request documents: Commission agenda memorandum dated May 12, 2009 from James
            R. Schone, Director, Aviation Business Development and W. Allan Royal, Manager, Port
            Real Estate Development; computer slide presentation, and draft purchase and sale
            agreement. 
                e.  Authorization to establish a 7.4% interest rate on a Port Investment to partially
              fund the costs associated with the design and construction of the Consolidated
             Rental Car Facility (CRCF) program. 

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           Request document: Commission agenda memorandum dated July 9, 2009 from James R.
            Schone, Director, Aviation Business Development; R. Borgan Anderson, Manager,
            Aviation Finance and Budget; and Elizabeth Morrison, Senior Manager, Corporate
            Finance 
                 f.  Authorization for the Chief Executive Officer to execute a pedestrian crossing
             construction and maintenance agreement with BNSF at Klickitat Avenue SW for
              the T18 expansion project for an estimated project cost of $325,000. 
           Request document: Commission agenda memorandum dated July 8, 2009 from Michael
            Burke, Senior Manager, Container Leasing and Operations and Catherine Chu, Capital
            Project Manager; and grade crossing construction and maintenance agreement 
               g.  Authorization for the General Counsel to engage legal counsel to represent Bob
              Riley in an investigation by the State Board of Engineers, subject to the
              limitations set forth in RCW 53.08.208. 
            Motion authorizing General Counsel to engage legal counsel, as follows: 
            "The Commission authorizes the General Counsel to engage legal counsel for the purpose
             of representing Robert Riley in the investigation by the State Board of Engineers, subject
             to the limitations set forth in RCW 53.08.208. 
            Motion for approval of Unanimous Consent Items 5a, 5b, 5d, 5e, 5f, 5g  Davis 
           Second  Creighton 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                c.   (00:03:02) Authorization for the Chief Execu tive Officer to execute an
           amendment to extend the Lease and Concession Agreement of Host International
            (Host Duty Free) for duty free retail operations at Seattle-Tacoma International
            Airport (Airport) in 2010. 
           Request documents: Commission agenda memorandum dated July 1, 2009 from James
            R. Schone, Director, Aviation Business Development and Deanna Zachrisson, Manager,
            Aviation Concessions; and copy of amendment to lease and concessions agreement. 
            Responding to a question from Commissioner Hara, Ms. Zachrisson clarified that today's
             request was for an extension for Host Duty free for only one year, until the end of 2010,
             and that during that time, Host would be paying additional rent. She stated that Host will
             be leaving the duty free business at the end of that contract period, and that staff would be
             going out next year for a competitive bid. 

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           Motion for approval of Item 5c  Hara 
           Second  Davis 
            Motion carried by the following vote: 
            In favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
               6.   DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
               a.   (00:08:05) Authorization for the Chief Executive Officer to prepare the design
           for the Miller Creek Relocation Revisions and 160th Street Culvert Removal, Third
           Runway Environmental Mitigation at Seattle-Tacoma International Airport,
           including procuring and executing service agreements with consultants to perform
           design and construction support services and prepare contract documents. 
           Request documents: Commission agenda memorandum dated May 82, 2009 from
            Elizabeth Leavitt, Manager, Aviation Environmental Department and Robert F. Riley,
            Director, Aviation Capital Improvement Program; and computer slide presentation 
             reflecting areas being addressed in the request. 
             Presenters: Bob Duffner, Environmental Program Supervisor, Aviation Environmental
            Programs and Scott Kyles, Capital Project Manager. 
             Staff provided background of the project, noting that it is part of the overall
            environmental mitigation for the Third Runway. It was stated that staff would return in
             early 2010 with a request for authorization for construction and advertisement of the
            work per Resolution No. 3605. 
             It was clarified that this request was to only seek authorization and no new funds were
            being requested; that it would not raise the CPE (Cost Per Enplanement); and that the
            project will generate $106,000 in sales tax which will go to general purpose government. 
            Commissioner Tarleton comments on the importance of environmental mitigation as
             related to the Third Runway project. 
            Motion for approval of Item 6a  Davis 
          Second: Creighton 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 


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            The Port Commission regular meeting was recessed to a special meeting of the Industrial
            Development Corporation (IDC) of the Port of Seattle. 
              b.  (00:24:37) Adoption of IDC Resolution No. 75, authorizing the transfer of
           surplus funds in the sum of $10,000 from the Industrial Development Corporation
            to the Port of Seattle for the provision of training in public sector management skills
           necessary to implement the economic development programs of the Port. 
           Request documents: IDC memorandum dated July 10, 2009 from Diane Campbell,
            Corporate Financial Analyst and Annalee Luhman, Learning and Leadership Manager 
             Presenter: Ms. Campbell 
           Motion for adoption of IDC Resolution No. 75  Tarleton 
           Second  Hara 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
            The special meeting of the Industrial Development was adjourned and the regular
            meeting of the Port Commission was reconvened. 
                c.   (00:33:14) Resolution No. 3625, First Reading. Amending the 2009 Salary and
           Benefit Resolution No. 3609 to provide for a Voluntary Separation Program (VSP). 
             At the introduction of Item 6c, it was noted that the request would also include a request
            for Second Reading and Final Passage of Resolution No. 3625. 
           Request document: Commission agenda memorandum dated July 21, 2009 from David
           Henderson, Senior Manager, Total Compensation 
             Presenter: Mr. Henderson 
            Mr. Henderson provided background on the proposed amendment to the 2009 Salary and
            Benefit resolution, which would provide for the implementation of a voluntary separation
            program, which would be useful in meeting financial challenges resulting from current
            dire economic environments. A key component of the 2009 VSP would be that Extended
            Illness or Sick Leave hours would be cashed out at 100% rather than 50%, which is
            normally the case. Other key components would be the inclusion of a severance benefit
            of six days pay for each year of continuous Port of Seattle employment and six months of
            Port-paid medical and dental coverage. In exchange, the employee may not work for, or
            provide services to, the Port in any capacity in exchange for any form of compensation
             for two years. 

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            Commissioner Hara stated that he would be voting no on the proposed resolution,
             commenting that he felt it was important to have more discussion of resolutions than is
            allowed when First and Second Readings are held at the same meeting. 
           Motion to allow First, Second Readings and Final Passage  Davis 
          Second: Creighton 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
           Motion for First Reading of Resolution No. 3625  Creighton 
           Second - Davis 
            Commissioner Tarleton offered an amendment to the Resolution language, which would
            add at the end of the third WHEREAS the words 'for fiscal year 2009' and would add
             within the new proposed paragraph IX, in the first sentence, the words 'in fiscal year
            2009' to follow the words 'as needed' and before the words 'and amend.' 
            Second to Commissioner Tarleton's suggested revised language - Hara 
            Motion carried by the following vote: 
            In Favor: Bryant, Creighton, Hara, Tarleton (4) 
          Opposed: Davis (1) 
            Vote on First Reading, as amended carried by the following vote: 
           In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
           Motion for Second Reading and Final Passage of Resolution No. 3625, as amended  
           Davis 
           Second - Tarleton 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Hara Davis, Tarleton (4) 
          Opposed: Davis Hara (1) 


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              d.  (00:57:29) Motion regarding the authority to the Chief Executive Officer to
           amend current Collective Bargaining Agreements to allow the implementation of
           the 2009 Voluntary Separation Program 
             Presenter: David Henderson, Senior Manager, Total Compensation 
            Mr. Henderson noted that this item was related to the previous agenda item; however, it
             dealt with represented employees at the Port. He clarified that the Commission could
            approve this action by motion and that a resolution was not needed. 
           Motion for approval of Item 6d  Davis 
           Second  Tarleton 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                e.   (00:59:11) Resolution No. 3626, First Reading. Opting out of Tax
           Redistribution for Local Revitalization Areas in Auburn, Bellevue, Federal Way
           and Renton 
             At the introduction of Item 6e, it was noted that the request would also include a request
            for Second Reading and Final Passage of Resolution No. 3626. 
           Request document: Commission agenda memorandum dated July 27, 2009 from Clare
            Gallagher, State Government Relations Manager and Elizabeth Morrison, Senior
            Manager, Corporate Finance 
             Presenters: Ms. Gallagher and Ms. Morrison 
            Ms. Gallagher provided background of the proposed Resolution as related to Washington
           SB 5045. Under this legislation, the state will provide grants in the form of a sales credit
             to local jurisdictions for infrastructure improvements. She explained that the legislation
             allows local taxing districts that do not wish to participate to take official action to take
            out, which must be done by Resolution. 
           Motion to allow First and Second Readings and Final Passage  Davis 
           Second  Creighton 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
            Motion for First Reading of Resolution No. 3626  Tarleton 

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           Second  Creighton 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
           Motion for Second Reading and Final Passage of Resolution No. 3626  Creighton 
           Second  Davis 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
               7.   STAFF BRIEFINGS 
               a.  (01:21:29) Terminal 86 Grain Facility Infrastructure Briefing 
            Presentation documents: Commission agenda memorandum dated July 14, 2009 and
            computer slide presentation from Michael McLaughlin, Director, Cruise and Industrial
             Properties 
             Presenters: Mr. McLaughlin and Phil Lutes, Deputy Director, Seaport Division. Staff
            also introduced Mr. Mike Mandl, a representative of Louis Dreyfus Export Operations,
            who commented as part of the presentation. 
             Mr. Lutes provided a brief overview of the history of the Terminal 86 facility,
            commenting on the following: 
               Facility construction, beginning in 1968 
                Information regarding facility receiving and storing details 
               Overview of shipping at the facility 
               Background of the current lease agreement 
             Key economic impacts 
             Key issues 
              Business outlook 
               Positive environmental record 
            Mr. Mandl provided background of Louis Dreyfus, the company which has operated
            Terminal 86 since 2000. He also noted that the company is willing to participate in
             future needed upgrades to the facility, and offered to provide a tour of the facility to any
            of the Commissioners who may be interested. 
            Commissioner Davis requested that when staff returns with a request for terminal
            improvements, they also provide information regarding the revenues which have been

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             brought to the Port, the kinds of jobs that exist at the terminal, and the environmental
           improvements which have been done. 
              b.  (01:41:05) Briefing on Fishermen's Terminal South Wall Reconstruction
              Project 
            Presentation documents: Commission agenda memorandum dated July 14, 2009 and
            computer slide presentation from Melinda Miller, Director, Portfolio Management; Tim
            Leonard, Capital Project Manager; and Bob Maruska, Assistant Director, Engineering 
             Presenters: Mr. Maruska and Mr. Leonard 
            Staff presented background on the proposed project for the reconstruction of the South
            Wall at Fishermen's Terminal. Computer slides were shown and descriptions were given
             of the site plan, an existing typical section, and replacement typical sections. Also
            reviewed were key points to the project completion. Staff noted that the total
             construction period is anticipated to be about 6 months in duration. 
                c.  (01:56:16) Seattle -Tacoma International Airport Elevator/Escalator Briefing 
            Presentation documents: Commission agenda memorandum dated July 21, 2009 and
            computer slide presentation from Richard Ottele, General Manager, Aviation Facilities &
            Infrastructure and John Christianson, General Manager, Aviation Maintenance 
             Presenters: Mr. Ottele and Mr. Christianson 
             Staff provided an overview of the elevator and escalator systems at the Airport, noting
             that there are a total of 81 elevators and 79 escalators, many of which have exceeded their
             expected service life of 25 years and are needing to be replaced. Locations of the units
            were reviewed, as well as the program objectives and scope. Also discussed were
             projects completed so far; projects currently in process, and anticipated future projects for
             the elevator/escalator systems. 
            The importance of appropriate signage was noted in cases when either elevators or
            escalators were being worked on in order to maintain good communication and directions
             for the traveling public. 
              d.  (02:17:12) Rental Car Facility Program Update 
            Presentation documents: Commission agenda memorandum dated July 9, 2009 and
            attachments and supplemental information from Michael Ehl, Director, Airport
            Operations; George England, Program Leader, Project Management Group; and Janice
            Zahn, Assistant Director, Engineering Construction Services 
             Presenters: Mr. England and Ms. Zahn 

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             Staff commented on the recent restart of the Rental Car Facility Project and provided
            information on current progress and schedule; a status summary of the main construction
             contract and change orders; risk factors; significant developments; and future anticipated 
            Commission actions. 
             Following the presentation, Commissioner Davis asked that the art portion of the facility
             program be provided in a briefing in the near future 
               8.   NEW BUSINESS 
            Prior to adjournment, Mr. Yoshitani noted in response to Commissioner Tarleton's
             question, that new cable has arrived for cranes at Terminal 30. 
               9.   POLICY ROUNDTABLES 
           None. 
        10. ADJOURNMENT 
            The public session was recessed to an Executive Session at 3:55 p.m. to discuss personnel
             matters. 
            The regular meeting was then reconvened and immediately adjourned at4:05 p.m. 
             (A digital recording of the meeting is available on the Port's website.) 

           Lloyd Hara 
            Secretary 







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