Commission Meeting Portal

Special Meeting on Aug 18, 2009 1:00PM

Minutes for the Port Of Seattle Commission meeting, held on Aug 18, 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 SPECIAL MEETING AUGUST 18, 2009 
            The Port of Seattle Commission met in a special meeting at 1:00 p.m., Tuesday, August
            18, 2009 in the Commission Chambers at Pier 69, 2711 Alaskan Way, Seattle, WA.
            Commissioners Bryant, Creighton, Davis, and Hara were present. Commissioner
            Tarleton was absent. 
               1.     CALL TO ORDER 
             The regular meeting was called to order at 1:07 a.m. by Bill Bryant, Chair and President. 
               2.     EXECUTIVE SESSION pursuant to RCW 42.30.110 
           None. 
           PLEDGE OF ALLEGIANCE 
               3.     APPROVAL OF MINUTES 
           None. 
               4.    SPECIAL ORDER OF BUSINESS 
           None. 
               5.   (00:01:11) UNANIMOUS CONSENT CALENDAR 

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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
         TUESDAY, AUGUST 18, 2009                           P. 2 
               a.  Authorization for the Chief Executive Officer to issue Change Order Number
              0066 for the Consolidated Rental Car Facility in the amount of $218,968. 
           Request document: Commission agenda memorandum dated August 12, 2009 from
            Ralph Graves, Managing Director, Capital Development Division 
           Motion for approval of Item 5a  Creighton 
          Second: Hara 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Davis, Hara (4) 
            Commission Tarleton was absent for the vote. 
               6.   DIVISION, CORPORATE AND COMMISSION ACTION ITEMS 
           None. 
               7.   STAFF BRIEFINGS 
           None. 
               8.   NEW BUSINESS 
           None. 
               9.   POLICY ROUNDTABLE 
               a.  (00:02:07) Aviation Division 2010 -2014 Business Plan Overview 
            Presentation documents: Commission agenda memorandum dated August 4, 2009 and
            computer slide presentation from Mark M. Reis, Managing Director, Aviation Division 
             Presenter: Mr. Reis 
             Mr. Reis commented on the state of the airline industry in general, noting the fact that we
             are in the midst of the worst recession in generations, and commenting that the strength
            of the economy is the major driver of travel demand. Specific concerns noted included
             the fact that revenue is dropping faster than passenger levels as well as the impact of
             higher fuel costs. He stated that major losses since 2001 leave little capability to absorb
             additional losses. 
             Specifically related to Sea-Tac, strong points that Mr. Reis noted included: 

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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
         TUESDAY, AUGUST 18, 2009                           P. 3 
               A diverse mix of carriers 
                It is a strong origin and destination base 
               Puget Sound has a reasonably balanced economic base compared to other areas 
                Alaska Airlines, the largest carrier at the Airport, has a strong cash position 
            A preliminary enplaned passenger forecast was reviewed, and Mr. Reis commented that
            there would likely be no sharp rebound and that there would not be a typical recovery.
             He stated that a flat forecast was being maintained for 2010. 
            Two overriding goals for Sea-Tac were noted, those being to 1) Manage airline costs, and
            2) Increase non-aeronautical Net Operating Income.
            Mr. Reis reviewed the history of cost per enplanement (CPE) at Sea-Tac, noting the the
            main reason of CPE growth has been due to capital spending, and stating that the
             challenge for 2010 is that most 2009 budget cuts were not sustainable. 
            Challenges of Operating and Maintenance (O&M) costs were reviewed, and included: 
               Square footage of terminal 
              Amount of airfield pavement 
               Lineal feet of baggage system 
               Number of elevators and escalators 
            Other challenges reviewed by Mr. Reis were related to CIP and debt service and well as
            capital spending needs. He spoke of the importance of maintaining the operational
             integrity of the facility and equipment, which requires ongoing investment. He also
             noted that capital costs drive increases to the CPE, and it is a challenge to strike the right
             balance. 
            Ways in which the Airport hopes to restore and develop non-airline revenues were noted,
             and included the following areas: 
               Public parking  new products and innovative services to win back customers 
               Increasing advertising 
               Developing advertising on Port's Wi-Fi home page and website 
               Expanding array of products and services in the area of Concessions 
              Continuing work on property development 
             Mr. Reis noted the possibility of two 'game changers' that could have an effect on the
            numbers calculations provided in this presentation; those being if enplanements go up
             faster than currently anticipated and if there is a PFC (passenger facility charge) increase. 
             Commissioner Davis commented that it is an important thing for the public is that staff is
             paying attention to the details noted in today's presentation and reporting out on them. 

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        PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
         TUESDAY, AUGUST 18, 2009                           P. 4 

        10. ADJOURNMENT 
            There being no further business, the meeting was adjourned at 2:40 p.m. 
             (A digital recording of the meeting is available on the Port's website) 

           Lloyd Hara 
            Secretary 















               Aug 18 SM Min