Commission Meeting Portal

Regular Meeting on Sep 22, 2009 1:00PM

Minutes for the Port Of Seattle Commission meeting, held on Sep 22, 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 SEPTEMBER 22, 2009 
            The Port of Seattle Commission met in a regular meeting at 12:00 p.m., Tuesday, August
            25, 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 12:30 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 and Real Estate matters (RCW 42.30.110 (l)(i)(c)) for approximately one-half hour 
            and reconvened to public session. 
           PLEDGE OF ALLEGIANCE 
               3.     APPROVAL OF MINUTES 
           None. 
               4.   SPECIAL ORDER OF BUSINESS 
           None. 

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               5.   UNANIMOUS CONSENT CALENDAR 
           None. 
               6.   DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
               a.  (00:01:30) Authorization for the Chief Executive Officer to enter into three
               indefinite delivery, indefinite quantity (IDIQ) project-specific contracts for
             sediment site support for Harbor Island Superfund Site, Lower Duwamish
              Superfund Site and Elliott Bay/Puget Sound for a total value of all contracts Not
              To Exceed $6,000,000 and no individual contract will exceed $2,500,000.
              Contracts will be awarded for four years with two one-year options. 
           Request document: Commission agenda memorandum dated August 22, 2009 from
            Stephanie Jones Stebbins, Senior Manager, Seaport Environmental Programs and Kathy
            Bahnick, Environmental Program Supervisor, Seaport Environmental Programs 
             Presenter: Ms. Jones Stebbins and Doug Hotchkiss, Senior Environmental Program
           Manager 
            Ms. Jones Stebbins stated that today's request was related to necessary Superfund
            cleanup work, noting that much of the work done by the environmental group is
            supported in some way by technical contracts. She also mentioned that over the next
            several months, a number of procurement items would be coming forward as there will
             be several open order contracts that will expire at the end of 2009.
             It was noted that staff intends to go out with a Request for Proposals (RFP) within the
             next couple of weeks, and reiterated the fact that they had worked closely with the Office
             of Social Responsibility to ensure there will be opportunities for small business to apply
            for work.
             Staff verified for the Commission that this request, as well as the request for Agenda Item
             6b, was for contracting authority only, and not for spending of funds, noting there would
            need to be separate Commission authorization for the actual spending. 
            Commissioner Tarleton asked whether or not this funding would be coming out of the tax
             levy and Dan Thomas, Chief Financial Officer clarified that although it is part of an
            environmental reserves accounting entry, it ultimately comes from the tax levy when the
             project is funded.
            Motion for approval of Item 6a  Davis 
          Second: Creighton 
            Motion carried by the following vote: 

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           In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
            CEO Yoshitani suggested that there had been discussion of a possible review of the
            policy regarding what environmental expenses or capital expenditures should be paid out
            of the levy or not, and noted that staff is working on a recommended policy to make those
             distinctions.
              b.  (00:10:37) Authorization for the Chief Executive Officer to exe cute up to four
               individual indefinite delivery, indefinite quantity (IDIQ) project-specific
               contracts for consultant support for remediation activities at these locations: (1)
              Harbor Island (includes Terminals 10 and 18); (2) Terminal 5; (3) Terminal 91, 
              and (4) Terminal 117 for a total value Not To Exceed $2,500,000, and no
              individual contract will exceed $1,050,000. 
           Request document: Commission agenda memorandum dated August 25, 2009 from
            Stephanie Jones Stebbins, Senior Manager, Seaport Environmental Programs and Kathy
            Bahnick, Environmental Program Supervisor, Seaport Environmental Programs 
             Presenters: Ms. Jones Stebbins and Roy Kuroiwa, Senior Environmental Program
           Manager 
            Ms. Jones Stebbins noted that this procurement request was similar to the previous
             request on the agenda, but that this was for consultant support at the specific sites named
             in the request.
            Commissioner Tarleton pointed out that the use of IDIQ contracts is a good way to figure
            out how to get money into the hands of small businesses. She noted the importance of
            tracking how much money is being spent and how many jobs are being created as a result
              of the projects. 
           Motion for approval of Item 6b  Tarleton 
           Second  Davis 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                c.  (00:14:32) Authorization for the Chief Executive Officer to execute a lease
             amendment to the Prime Lease and Concessions Agreements of Host
              International, Seattle Restaurant Associates and Concessions International to
             cap mid-term refurbishment requirements to no more than $100 per square foot,
              and specify dates for completion of mid-term refurbishments in concessions
                units. 

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           Request document: Commission agenda memorandum dated August 18, 2009 from
            James R. Schone, Director, Aviation Business Development and Deanna Zachrisson,
           Manager, Concessions Management 
             Presenters: Mr. Schone and Ms. Zachrisson 
            Ms. Zachrisson commented that today's request was for an approval of an amendment to
            the current lease agreements with the three prime concessionaires at Sea-Tac Airport,
             Host International, Seattle Restaurants, and Concessionaires International. She noted that
            the change would apply to their subtenants as well. The leases require, at mid-term, that
             concessionaires do necessary refurbishments to their units to bring them up to 'like new'
             conditions after years of wear and tear that occurs naturally after years of use. 
            Discussion followed regarding the differences between tenants which are located on
            Concourse A at the Airport vs. those located in the Central Terminal, and whether or not
             it might be a good idea to have more calibrated lease requirements for various tenants
             who are located where there is far less traffic. Ms. Zachrisson clarified that within the
            requirement for mid-term refurbishments, there is no result of money coming to the Port,
             even though it does benefit the Port and the travelling public. She noted that it was more
             of an assurance that the tenant will take care of their own asset, assuring that they will
             maximize their own sales potential, which in turn affects the Port, as the Port is
            dependent on their success.
            Commissioner Tarleton suggested that the Audit Committee may want to put the issue of
            tenant refurbishments on a cycle next year to review how effectively the adherence to the
            terms, conditions and expectations are being met. 
            Motion for approval of Item 6c  Davis 
           Second  Tarleton 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
              d.  (00:33:36) Authorization for the Chief Executive Officer to execute a one -year
              extension to the Services Agreement for the continued operation of the Seattle-
             Tacoma International Airport Ramp Control Tower Facility for an estimated
               cost of $1,019,000. 
           Request document: Commission agenda memorandum dated September 4, 2009 from
            Michael Ehl, Director, Airport Operations 
             Presenter: Mark Coates, Senior Manager, Airport Operations 


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             Mr. Coates noted the support of the Airlines to extend this current contract with Robinson
            Aviation, and gave examples of Robinson's efficiency in operating the Tower Facility.
             He noted that this would be the last option for extension of the contract and that next year
             it would go out for a competitive bid. He commented that staff has requested a 5%
             reduction is fees, and stated that a response would be forthcoming. 
           Motion for approval of Item 6d  Tarleton 
           Second  Hara 
            Motion carried by the following vote: 
           In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
                e.  (00:36:54) Approval of the Commission Policy regarding the Chief Executive
             Officer's Annual Performance Goals and Objectives, Performance Evaluation
            and Compensation Review. ITEM DEFERRED 
           Request document: Commission agenda memorandum dated September 14, 2009 and
            attachment from Mary Gin Kennedy, Director of Commission Services 
             Presenter: Ms. Kennedy 
            Ms. Kennedy noted that this request is for a new policy which would provide a
            framework and methodology for setting the Chief Executive Officer's (CEO) annual
            performance goals and objectives, evaluating the CEO's performance, and undertaking
            the CEO's compensation review. 
            Commissioner Davis suggested two additions to the document provided (and linked to
             these minutes), those being (with additional language in bold, below): 
                Page 1, I. Policy Goals. Goals and Objectives related to achieving Port financial
                 and budgetary annual performance goals and aligning budget priorities to the
                 Port's core mission, and as stated in our bylaws. 
               Page 2, General Considerations, Executive salary adjustment decisions involve
                  both quantitative and qualitative assessments. The Commission recognizes that
                its own decisions and/or changed market conditions may affect the CEO's
                  ability to accomplish specific goals and this factor will be taken into consideration
                 during performance evaluation and salary adjustment deliberations. 
            Commissioner Creighton mentioned the issue of 'ranking' for CEO compensation,
            commenting that he felt is should be within the same framework range as that of Port
            staff, and noted that within this document the ranges went from 'minimally acceptable' to
             'excellent.' He stated that he would not be prepared to vote on the document as currently
              written. 

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            Commissioner Tarleton stated her belief that a CEO should never drop below a level of
            an excellent performance, and also commented that she felt a CEO of a public agency
            should not receive a pay increase greater than staff members are allowed. Commissioner
             Tarleton also stated her desire that the document be made available for the public to look
                at.
            Commissioner Hara suggested the possibility of the establishment of a salary commission
             to take a look at what is felt to be fair as there would be some expertise to look at the
            market. Commissioner Davis commented that she believes the Commission body is fully
             capable of establishing the criteria for the CEO salary. Commissioner Tarleton said she
            believes a salary commission might be helpful. Commissioner Creighton stated that he
            does not see any compelling reason to deviate from what the Commission has done in the
              past. 
            CEO Yoshitani asked that the Commission consider when a body evaluates his
            performance, that the body fully understand the complex issues involved in his job and
            exactly what he does.
            Commissioner Bryan asked that Commissioners Creighton and Tarleton work on possible
            revisions to the document as brought forward and return with those revisions. A vote on
             the item was deferred. 
            Public comment regarding Item 6e was received from the following: 
               Paul Marvy, King County Citizens for Port Reform. Mr. Marvy stated his belief
                  that Mr. Yoshitani's current pay is out of line with industry standards 
            Following public comment, Mr. Yoshitani noted although staff has received salary
            adjustments for the previous year in amounts of 3-5%, he has not received any such
             adjustments, and if offered, would not accept it. 
               7.   STAFF BRIEFINGS 
               a.  (01:14:32) Briefing on the Consolidated Rental Car Facil ity (RCF) 
            Presentation documents: Commission agenda memorandum dated September 11, 2009;
            attachment; and computer slide presentation from Michael Ehl, Director, Airport
            Operations; George England, Program Leader, Project Management Group; and Janice
            Zahn, Assistant Director, Engineering Construction Services 
            Presenters: Mr. England, Ms. Zahn, and Col leen McPoland, Art Program Manager,
             Aviation Facilities and Infrastructure 
            Ms. Zahn provided an update on current ongoing work at the RCF, and noted that
            contractors are working on Saturdays to remove contaminated soil which was recently

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            found. She stated that the work is being done on Saturday's in an attempt to make up
             time. 
             Mr. England reported on the remaining design items, specifically regarding the off-site
             road package and also spoke of ongoing talks with local utilities as related to the off-site 
             roads package as well to the bus maintenance facility.
            Ms. McPoland presented information on the art which planned for the RCF, which is
             proposed to be a 'draping' of steel mesh fabric at various areas of the facility and around
             the helices located there. The mesh would have LED lights within it, which would be
           programmed to change color.
             Commissioner Tarleton stated her concern of possible optical illusions to drivers using
             the helices due to the bright lights, changing colors, and driving in a circular path to go
             up or down the helix, as well as the impact it could all have on visibility though the
            windshields of vehicles. It was suggested that staff talk further with the artist as well as
             transportation people regarding these issues. Staff agreed to do so.
            Mr. Yoshitani commented that Commissioner Tarleton's thoughts will be taken into
            account and that he would ask staff to come up with recommended language to the Port's
             Art Policy to assure that further art work is looked at from a practical standpoint. 
              b.  (01:29:39) Seattle -Tacoma International Airport Facility Functionality and
              Readiness Briefing 
            Presentation documents: Commission agenda memorandum dated September 2, 2009
            and computer slide presentation from Dave Soike, Deputy Director, Aviation Division 
             Presenter: Mr. Soike 
            Mr. Soike stated that the objective of his presentation was to provide some background as
            to how the Airport facility is aging; to show work which has been accomplished as well
             as work still needing to be done. He commented that over the upcoming year there
            would be a number of these projects coming to the Commission for authorization. 
             Infrastructure areas reviewed included: 
                  Vertical circulation (elevators and escalators) 
                 Electrical systems (power centers/generators; communication systems;
                    lighting systems) 
                  Mechanical (chillers/boilers; air handling systems; piping systems) 
                 Baggage infrastructure (conveyors; screening systems; programming systems) 
                  Passenger loading bridges (in various states of condition  need to be
                    dependable and reliable) 
                  Building roof (last major reroof program occurred 1991-97; warranties expire
                   soon) 

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                  Pavement and joint seal infrastructure (ongoing need at an airport) 
             Mr. Soike stressed the need for the Airport to maintain functional readiness as well as the
             importance of prioritizing projects that consume capital investment capacity 
                c.  (01:46:17) Briefing on the Port's Liability Insurance Renewal 
            Presentation documents: Commission agenda memorandum dated September 22, 2009
            and computer slide presentation from Jeff Hollingsworth, Risk Manager 
             Presenter: Mr. Hollingsworth 
            Mr. Holllingsworth reviewed the Port's existing coverages and noted this was a renewal
            process which would begin on October 1, 2009.
            Major liability coverages mentioned by Mr. Hollingsworth included: 
              Police operations 
               Public officials and Employment practices 
                Seaport, or more specifically, all non-Airport operations 
              Airport-only operations 
                Auto  liability of the Port's fleet 
            Several insurance premium factors were reviewed, including the total operating/capital
             budget of the Port; the record of past losses and claims; payroll; strength of indemnity
            agreements with our tenants; operations controlled by the Port vs. those under ownership
             of the tenant; size of the Port's fleet; and the number and concentration of employees. 
            It was noted that the renewal coverage would run from October 1, 2009 to October 1,
           2010. Mr. Hollingsworth stated that following a competitive bid process, the Port had
             selected a new broker who has identified a small business partner, and that a 10% target
            goal of small business involvement is included in the broker service agreement. He noted
             that the broker also agreed to the 5% fee reduction being asked by the Port of its
             consultants. 
               8.   NEW BUSINESS 
            Trip Reports: 
            Commissioner Davis reported on her September 4  September 14 trip to Asia, with CEO
            Yoshitani, which included visits to China, Korea, Hong Kong, Singapore and Tokyo.
             She noted that the purpose of the trip was to personally thank the Port's overseas
            representatives for their services in those offices which are now being closed by the CEO
             as a necessity of cost-cutting. 

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            She also referenced customer calls made during the trip and attendance at the 'China
             Green Tech Initiative, a 2-day conference. 
            Commissioner Bryant noted that today would be Rick Williamson's last day working at
            Commission meetings, and thanked him for the superb (I.T.) service and support he has
            provided to not only the Commission, but the community and King County related to the
            recording of Commission meetings. 
               9.   POLICY ROUNDTABLES 
           None. 
        10. ADJOURNMENT 
            There being no further business, the meeting was adjourned at3:18 p.m. 
             (A digital recording of the meeting is available on the Port's website.) 

           Lloyd Hara 
            Secretary 










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