Commission Meeting Portal

Regular Meeting on Aug 04, 2009 1:00PM

Minutes for the Port Of Seattle Commission meeting, held on Aug 04, 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                                     206.787.3000 

                   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 AUGUST 4, 2009 
                  The Port of Seattle Commission met in a regular meeting at 1:00 p.m., Tuesday, August
                  4, 2009 in the Commission Chambers at Pier 69, 2711 Alaskan Way, Seattle, WA.
                  Commissioners Bryant, Davis, Hara and Tarleton were present. Commissioner Creighton 
                   was absent. 
                      1.       CALL TO ORDER 
                   The regular meeting was called to order at 1:12 p.m. by Bill Bryant, Chair and President. 
                      2.       EXECUTIVE SESSION pursuant to RCW 42.30.110 
                 None. 
                 PLEDGE OF ALLEGIANCE 
                      3.       APPROVAL OF MINUTES 
                  (00:01:05) Motion for approv al of the minutes of the July 7 regular meeting and the
                 special meeting for Century Agenda on December 9, 2008  Tarleton 
                 Second  Davis 
                 In Favor: Bryant, Davis, Hara, Tarleton (4) 
                 Commissioner Creighton was absent from the meeting. 

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                       4.      SPECIAL ORDER OF BUSINESS 
                  Commissioner Hara commented on his recent attendance at Fleet Week, a part of the
                    Seattle Seafair festivities, and his acceptance, on behalf of the Port, of a gift given by the
                 Navy. 
                       5.      UNANIMOUS CONSENT CALENDAR 
                 None. 
                       6.   DIVISION, CORPORATE AND COMMISSION ACTION ITEMS 
                      a.  (00:05:03) Adoption of the Cent ury Agenda Guiding Principles Developed by
                     the Four Expert Panels and Illustrative Discussion of Their Application 
                 Presentation Documents: Commission agenda memorandum dated July 17, 2009 from
                  Burr Steward, Strategic Planning Manager; computed slide presentation; and document 
                  titled, "Century Agenda: Expert Panels" Recommended Principles." 
                   Presenter: Mr. Stewart 
                   Prior to the presentation, Commissioner Bryant explained that the adoption of the
                  Guiding Principles is a culmination of many months of work by four expert panels made
                   up of community members, and would be the first step in the Port"s effort to develop a
                   new strategic plan going into the first 20-25 years of the Port"s next century.
                  Mr. Stewart noted that the Century Agenda is scheduled to be completed in 2011, the
                   year of the Port"s centennial. He stated that the Century Agenda focuses on sustainability
                  in the four areas of economy; equity; environment; and employees. 
                   It was noted that four issues were initially addressed by the four expert panels during
                  2008, and that other emerging issues would be looked at as the process moves forward.
                   The four panels created to address the initial issues of importance were Green Port
                  Strategy, Social Responsibility, Real Estate and Land Use, and Funding Policy and
                   Strategy. Mr. Stewart mentioned that in addition to volunteer members of the community
                   participating on the panels, at least one Port Commissioner and one senior Port executive
                 was a member of each panel.
                  Mr. Stewart commented that 22 recommended guiding principles were drafted as a result
                   of the panel meetings. He also noted that there had been some overlap in what the panels
                   felt were important to hold as principles, resulting in five shared principles, which were
                   listed at the beginning of the Guiding Principles document. 


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                  Mr. Stewart stated that the adopted Guiding Principles would be used in making
                   decisions for the 2010 budget as well as for the next step in strategic planning, which will
                   be to create a new look at the Port"s mission, vision and values. 
                  CEO Yoshitani then expressed his appreciation to the panel members who had been
                  engaged in the whole process of creating the proposed Guiding Principles. He also
                   thanked the Commissioners for their participation. 
                   Mr. Yoshitani stated that he believes the Guiding Principles summarize a set of
                  expectations that stakeholders have regarding what the Port should accomplish over the
                  long term. He mentioned two areas in which the Principles would help provide guidance
                    the Port"s capital plan and the use of the tax levy. He also commented that stakeholders
                   also have an expectation for the Port to do a better job of demonstrating the management
                    of financial resources. 
                  Mr. Yoshitani commented on what he believed to be another equally important use of the
                   Guiding Principles, that being the providing of a big picture framework with which to
                  make short-term decisions. 
                  Public comment regarding Item 6a was received from the following individuals: 
                      Fred Felleman, Friends of the Earth. Mr. Felleman stated that he had participated
                         on the public funding aspect of the process. He commented on the importance of
                           the Port moving forward with a clear focus, stated his appreciation that the Port"s
                          goals remain contemporary to the needs of the Port. 
                     Dave Freiboth, King County Labor Council. Mr. Freiboth provided positive
                          comments on the report provided regarding the goals of the Port, noting that the
                           report signals a good move in the right direction and spoke in favor of the labor
                          community"s participation in the process. 
                 Following public comment, Commission discussion followed regarding the proposed
                   Guiding Principles. 
                   Commissioner Davis expressed concern that within the shared principles it is not clearly
                   stated that the Port does not have a good mission statement, and suggested that as a result
                   of the work done by the panels, it should not be difficult to come up with one. 
                   Commissioner Tarleton stated that she also sees a need for a statement of the Port"s
                   mission in order to derive the core principles from which strategies would be derived.
                  She referenced a memo from Peter Phillips to the Commission regarding the shared
                    principles. She noted that the memo triggered information regarding the mission, which
                  exists in the recently revised Commission Bylaws. The language from Article I,
                  Preamble of the Bylaws is as follows: "Commissioners shall safeguard the Port of Seattle
                   as a public agency whose primary mission shall be to invest public resources to advance
                  trade and commerce, promote industrial growth, stimulate economic development and
                    create jobs. This mission depends upon the transportation of people and goods by air,

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                   water and land and ensures economic vitality and a sustainable quality of life for the
                  people of King County." Commissioner Tarleton stated that this language would
                   embrace all of the elements contained within the shared principles. She suggested that the
                  shared principles be amended to begin with the language from the Bylaws in lieu of the 5
                    bullets currently listed under the first shared principle. She further clarified that the
                  language from the Bylaws would be inserted into the introductory paragraph of the
                   current Guiding Principles document and that the first bullet would be deleted, leaving 4
                    bullet points rather than the 5 currently listed. 
                  Further public comment regarding Item 6a was received from the following individual: 
                       Peter Philips, President, Philips Publishing Group. Mr. Philips, a contributing
                          member of one of the expert panels, suggested that the language proposed by
                          Commissioner Tarleton be used in the introductory paragraph and that the 5 bullet
                           points listed remain, since they would clarify that introductory paragraph. 
                  Commissioners agreed with the suggestion made by Mr. Philips and the decision was
                   clarified for the record by Commissioner Bryant. 
                   Prior to further discussion, it was noted that within the Shared Principles, there were both
                  numbers and bullets being discussed which included bullets under numbered items. 
                   Discussion then followed regarding the possibility of adding language regarding real
                    estate to the second bullet under the first shared principle. It was decided to add language
                   which resulted in the bullet reading, "The health of its commercial maritime, commercial
                    fishing, cruise business, aviation enterprises, and Port-related real estate holdings." 
                   Commissioner Hara raised the idea of adding a separate bullet regarding tourism, but
                   after discussion, it was decided that tourism was already embraced in the bullet
                  addressing the generation of economic and employment opportunities and that it did not
                    need to be called out separately. 
                   Regarding the second shared principle, in order to provide additional clarity, the decision
                   was made to add language at the end of the principle regarding the "triple bottom line."
                   As a result, the principle would read, "The Port will measure its success against
                   economic, social and environmental indicators, referred to as the "triple bottom line." 
                  No suggestions for changes to the third shared principle were made, and discussion
                   moved to the fourth and fifth proposed shared principles. It was proposed by
                  Commissioner Bryant that edits be made to the two principles to incorporate language
                   suggested by Mr. Peter Philips. Additionally, Commissioner Hara suggested adding
                   language regarding the people of King County to the fifth principle. Both proposals were
                    agreed upon, resulting in the fourth and fifth principles being stated as follows: 
                      4.   The Port should provide innovative leadership by adopting best practices and
                       partnering with others who are committed to responsible stewardship of our

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                      economy, environment and community, where those partnerships serve to further the
                         interests of the Port"s core business. 
                      5.   The Port is obligated to sustain the public trust through an ongoing commitment to
                       transparency, accountability and equity and effective communication of its core
                       activities to industry, the regulatory and environmental community and the people of
                     King County. 
                  Discussion then moved forward regarding the principles proposed by the four individual
                   expert panels as follows: 
                 (01:16:41) Green Port Principles 
                  Commissioner Bryant suggested adding information to the 4th principle stressing the fact
                   that environmental policies and programs are integral to assessing the Port"s economic
                  competitiveness. Specific language was not suggested and there were no changes made. 
                   Discussion regarding the 3rd paragraph of the 1st principle, which stated that the Port
                  would be "required" to exceed compliance standards and metrics to be used.
                  Commissioner Tarleton suggested revising the statement to read "may at times allow"
                   rather than "may at times require. The suggested language was accepted and the revised
                  paragraph is below with new language in bold: 
                  "Implementing new technologies and best management practices may, at times, allow the
                  Port to exceed compliance standards. In such cases, metrics, objectives and returns
                   should be clearly understood by all parties and stakeholders. When it would be useful for
                   tenants to exceed standards, the Port should provide incentives or facilitation programs.
                  (See decision-making schematic) 
                   Regarding the 3rd principle, additional language was discussed and suggested. The
                   revisions are noted below in bold: 
                  On broad environmental issues, the Port should partner with tenants, regulatory
                   authorities, local jurisdictions, other ports and non-governmental organizations to
                  leverage its financial and professional resources on issues such as cleaning up Puget
                  Sound or reducing greenhouse gas emissions in King County. 
                  Regarding the 5th Green Port Principle, Commissioner Hara suggested there be more
                   clarity as to what was meant by suggesting periodic assessment of the Port"s
                   environmental initiatives. Commission Tarleton suggested changing that language to
                  reflect that such assessments would be done at Commission direction. The principle with
                   revised language in bold is as follows: 
                  Public communications about the Port"s environmental programs and their funding
                   sources need to be a high priority. This information will help taxpayers better understand
                   the Port"s efforts to be a model for sustainable growth. It may well encourage public

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                  input in environmental priority and program decision-making. The Port"s environmental
                  initiatives should be assessed per Commission direction to compare accomplishments
                  with goals and benchmarks. 
                 (01:29:23) Social Responsibility Principles 
                  No changes to the proposed principles were suggested. 
                 (01:29:57 Real Estate and Land Use Principles 
                  Commissioner Davis commented that one of the concerns of the members of the panel
                   which focused on land use was that the Port has drifted away from some of its core
                    principles. She stated that the tiered land use system they suggest would help address
                   that issue, and that the top tier, known as "direct uses" would focus on the core principles
                    and would be the first priority. 
                  Commissioner Hara stated his concern about maintaining a revenue stream going forward
                     into the future. 
                  Commissioner Tarleton noted the importance of taking care of current lease-paying
                    tenants. She also voiced concern that comments in the 3rd principle regarding investing
                   in the viaduct and I-5 capacity improvements imply a lack of support for the core mission
                   as those two projects have a distinct impact on the Port"s ability to accomplish its core
                  mission. She wanted it to be clear that the only reason the Port would support those type
                   of projects would actually be to support the core mission. 
                  Commissioner Hara also commented on the importance of mainline rail being included as
                    a part of this discussion. Mr. Stewart noted that rail is actually a regional transportation
                   issue and was not a part of the scope of the panel discussions. 
                 (01:43:16) Funding Policy and Strategy 
                  Commissioner Hara suggested adding language in the 1st principle regarding goals being
                   associated with social responsibility in terms of adequate funding, specifically regarding
                    the tax levy. Commissioner Tarleton noted that she believed that would be better suited
                   as a policy discussion 
                   Following discussion, it was decided that the principle would remain as proposed.
                  Regarding the 2nd principle, Commissioner Davis suggested adding "strategic plan" to the
                    principle in order to clarify that core mission and strategic plan are not the same thing.
                   The principle with the added language in bold is as follows: 
                   The Port should demonstrate to the public that it has managed its financial resources as a
                    disciplined steward of the public interest, guided by priorities set forth in its core mission
                  statement and strategic plan. 

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                  Regarding the 3rd principle, a suggested change was made by Commissioner Davis to add
                   language about the Port"s core mission. This change was accepted and the principle with
                   the added language in bold follows: 
                   The Port should foster a culture of partnership and collaboration in pursuing public and
                   private funding partnerships for investments that apply to the Port's core mission, that
                    reap shared benefits to all its partners, and that no single entity can achieve
                  independently. 
                  Prior to the motion to adopt the Guiding Principles, Commissioner Bryant reviewed the
                 proposed amendments. 
                  Public comment was received from the following: 
                      Fred Felleman, Friends of the Earth. Mr. Felleman voiced his concern that there
                          had been no mention made of the importance of the state"s northern border as
                           related to Port competitiveness. 
                 Motion for approval of the Century Agenda Guiding Principles, as amended  
                 Tarleton 
                 Second - Davis 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Davis, Hara, Tarleton (4) 
                  Commissioner Creighton was absent for the vote. 
                 a-1 (02:00:18) Seattle -Tacoma International Airport's Five-Year Environmental
                 Strategy Plan As It Relates to the Century Agenda. 
                  Presentation documents: Commission agenda memorandum dated July 29, 2009 from
                  Elizabeth Leavitt, Director, Aviation Planning and Environmental Programs; and Michael
                 Lufkin, Senior Environmental Strategy Manager, Aviation Environmental Programs;
                   computer slide presentation; and report titled "Seattle-Tacoma International Airport; A
                  Vision for 2014 and Beyond; Environmental Strategy Plan 2009. 
                   Presenters: Ms. Leavitt and Mr. Lufkin 
                  Ms. Leavitt provided background on how and why this plan was developed, noting that it
                   was developed to assist staff in addressing environmental goals and would also provide to
                   the public a clear understanding of what is trying to be accomplished environmentally at
                   the Airport. She commented that clear metrics would be provided as an evaluation tool.

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                   Mr. Lufkin provided an overview of how the plan is organized, noting that the plan is
                  organized around three themes, those being (1) Moving people and goods efficiently, (2)
                  Managing natural resources wisely, and (3) Promoting sustainable communities. 
                   It was noted that the plan embraces both quantitative as well as directional goals and that
                  each goal is accompanied by objectives and metrics. 
                   Goals, objective and metrics were briefly reviewed for the following areas: 
                    Energy Use and Conservation 
                     Air Quality and Climate Change 
                      Building and Infrastructure 
                     Materials Use and Recycling 
                     Water Resources and Wildlife 
                  Noise 
                     Education and Integration 
                  Staff commented on the importance of further communicating the vision and goal of the
                   plan as a part of "next steps." It was also noted that there would be annual reporting
                  provided regarding progress made. 
                  Public comment regarding Item 6-a1 was received from the following individual: 
                    Roger McCracken, Masterpark. Mr. McCracken thanked the Commission and
                          staff for creating a framework in which environmental efficiency can be improved
                         at the Airport. A copy of Mr. McCracken"s comments was provided, is by
                           reference, made a part of these minutes, is marked Exhibit "A," and is on file in
                             Port offices. 
                 a-2 (02:43:22) A Look Back at the Central Waterfront Development Project As It
                 Relates to the Century Agenda 
                  Presentation documents: Commission agenda memorandum dated July 29, 2009 from
                  Melinda Miller, Director, Portfolio Management and Real Estate Division and computer
                    slide presentation. 
                   Presenter: Ms. Miller 
                  Ms. Miller provided a historical background of the Central Waterfront Development
                  Plan, and commented on all of the major development that has happened throughout
                    Elliot Bay related to the Port"s core businesses. 
                   As project background, Ms Miller noted that property acquisitions began in the late
                   1980"s and that planning began in 1990. Other significant dates of the project included: 
                     Development of the World Trade Center (WTC) and Garage 

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                     1995 Pierside opening 
                     1997 addition of the WTC-North garage 
                      Completion of the hotel in 2001 
                   Ms. Miller noted that the Central Waterfront Project succeeded in revitalizing and
                  bringing needed development to the waterfront, and commented that the Seattle
                   waterfront would have a far different appearance had the project not been done. 
                   Ms. Miller commented on lessons learned as a result of the Project, which included: 
                       Knowing that objectives can shift over time, especially with long term projects 
                      Project can change scope considerably over time 
                       Projects need careful and continually updated financial analyses 
                     b.  (03:10:25) Chief Executive Officer Goals and Objectives 
                  Presentation document: Commission agenda memorandum dated July 30, 2009 from
                  Mary Gin Kennedy, Director, Commission Services and document titled, "Chief
                  Executive Officer"s 2009 Goals and Objectives." 
                   Prior to discussion, Commissioner Bryant noted that this is a process done in the spring
                   and hopes in the future to have this done in a December or January time frame.
                   Commissioner Bryant noted that this year, specific policy goals were identified for the
                   CEO which relate to the overall direction of the Port, and specific objectives were also
                   identified to be incorporated into the division workplans. Also, specific tasks were
                   identified that the Commission would like to see accomplished before the end of the year. 
                  Mr. Yoshitani commented on the item of producing a robust new website for the Port,
                   noting that due to budget constraints, he had some difficulty with this item and might like
                  to have it removed. Commissioner Bryant agreed that there may be some areas that could
                   not be fully addressed due to budget issues, but stated that he would like to keep this item
                   in the goals and objectives in order to emphasize its importance as a need for sometime in
                     the future. 
                  Regarding the issue of presenting the Commission with options for reducing the
                  Seaport"s reliance on the tax levy beyond 2013, Commissioner Davis voiced her concern
                   that this would result in a need to then cut environmental projects, as most of the
                  Seaport"s projects have an environmental component to them. She also stated her
                    feelings that the issue should be discussed further in public. 
                  Commissioner Bryant clarified that the item is only for the CEO to come up with options
                   on reducing reliance on the tax levy, not providing direction to actually reduce the tax
                    levy. 

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                   Mr. Yoshitani reiterated the need to continue investing in the maritime industry in order
                   to remain competitive. 
                 Motion for approval of item 6b  Hara 
                 Second  Tarleton 
                  Motion carried by the following vote: 
                 In Favor: Bryant, Davis, Hara, Tarleton (4) 
                  Commissioner Creighton was absent for the vote. 
                       7.   STAFF BRIEFINGS 
                 None. 
                       8.   NEW BUSINESS 
                 None. 
                       9.   POLICY ROUNDTABLE 
                 None. 
            10. ADJOURNMENT 
                   There being no further business, the meeting was adjourned at 4:40 p.m. 
                   (A digital recording of the meeting is available on the Port"s website.) 

                 Lloyd Hara 
                   Secretary 





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