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Regular Meeting on Apr 11, 2017 1:00pm

Minutes for the Port Of Seattle Commission meeting, held on Apr 11, 2017 1:00pm

        – www.portseattle.org . APPROVED MINUTES COMMISSION REGULAR MEETING APRIL 11, 2017 The Port of Seattle Commission met in a regular meeting Tuesday, April 11, 2017 , at Port of Seattle Headquarters, Commission Chambers, 2711 Alaskan Way, Seattle, Washington. Commissioner s Albro, Creighton, Felleman, and Gregoire were present. Commissioner Bowman was excused in order to attend to other Port business. 1. CALL TO ORDER The mee ting was cal led to order at 12 noon by Commission President Tom Albro . 2. EXECUTIVE SESSION pursuant to RCW 42.30.110 The public meeting was immediately recessed to an e xecutive s ession estimated to last 60 minutes to discuss one matter relating to potential litigation, legal risk, and national security and one matter related to national security . Following the executive session, which lasted approximately 55 minutes, the public meeting reconvened at 1:12 p.m. Commissioner Albro led the flag salute. 3 . SPECIAL ORDER S OF BUSINESS 3a. April 11, 2017 , CEO Report. Dave Soike, Interim Chief Executive Officer, previewed several items on the day’s agenda and announced that the Port of Seattle website had been updated with new Ai rport parking rates taking effec t on April 14, and a comprehensive summary of t he events that occurred at the A irport during the demonstrations of January 28 and 29 . A recording of this part of the meeting has been made available online . 4 . UNANIMOUS CONSENT CALENDAR [Clerk’s Note: Items on the Unanimous Consent Calendar are considered routine and are not individually discussed . Port Commissioners receive the request documents prior to the meeting and may remove items from the Consent Calendar for separate discussion and vote in acco rdance with Commission bylaws.] At the request of Commissioner s Felleman and Albro, agenda item s 4c and 4d, respectively, w ere removed from the Unanimous Consent Calendar for separate discussion and vote. 4 a. Approval of the minutes of the regular meetin g of March 14, 2017 . P.O. Box 1209 Seattle, Washington 98111 www.portseattle.org 206.787.3000 PORT COMMISSION MINUTES Page 2 of 8 TUESDAY, APRIL 11, 2017 Minutes of April 11, 2017, submitted for review on May 3, 2017, and proposed for approval on May 9, 2017. 4 b. Authorization to enter into a tenant reimbursement agreement with Alaska Airlines to reimburse $880,448.66 for Port - responsible baggage system improvements constructed as part of a tenant improvement project in the Zone 7 ticketin g area at Seattle - Tacoma International Airport (CIP #C800154). Request document(s) included a Commission agenda memorandum , reimbursement agreement, and area diagram . As noted above, agenda item s 4 c and 4d were temporarily postponed . 4 e . Authorization for the Chief Executive Officer to (1) award and execute a major public works contract with the low responsive and responsible bidder for the Pier 66 $250,000, due to bids exceeding the original estimates. The new authorized total project cost will be $1,795,000 (CIP #C800813). Request document(s) included a Commission agenda memorandum . 4 f . Authorization for the Chief Executive Officer to execute a five - year contract for lot attendant services at the North Employee Parking Lot at Seattle - Tacoma International Airport. [Clerk’s Note: The estimated contract cost over five years is $1,025,000.] Request document(s) included a Commission agenda memorandum . The m otion for approval of consent items 4 a, 4 b, 4e, and 4f carried by the following vote: In f avor: Albro, Creighton, Felleman, Gregoire ( 4 ) Absent for the vote: Bowman A recording of this part of the meeting has been made available online . 5. PUBLIC TESTIMONY P ublic comment was received from the following individual ( s ) :  John Persak, Vice President, ILWU Local 19 , regarding the proposal in agenda item 6c to check and transport cruise passengers’ baggage directly to the Airport and its implications for organized labor . A recording of this part of the meeting has been made available online . T he Commission advanced to consideration of – ITEMS REMOVED FROM CONSENT 4 c . Authorization for the Chief Executive Officer to execute a contract to buy one industrial vacuum truck in support of the Marine Stormwater Utility operations on Port of Seattle properties, including some managed by the Northwest Seaport Alliance. The estim ated cost is $625,000 (CIP #800897). PORT COMMISSION MINUTES Page 3 of 8 TUESDAY, APRIL 11, 2017 Minutes of April 11, 2017, submitted for review on May 3, 2017, and proposed for approval on May 9, 2017. Request document(s) included a Commission agenda memorandum . Presenter(s): Srini Pendikatla, Program Manager, Marine Stormwater Utility; Mary Ann Lobdell, Senior Manager, Compliance and Fleet, Marine Maintenance; and Stephanie Jones Stebbins, Director, Maritime Environmental and Planning . Ms. Jones Stebbins clarified the Northwest Seaport Alliance’s contribution to the Stormwater Utility through fees paid as a tenant of the utility. The m otion for approval of agenda item 4 c carried by the following vote: In f avor: Albro, Creighton, Felleman, Gregoire ( 4 ) Absent for the vote: Bowman A recording of this part of the meeting has been made available online . 4 d . Authorization for the Chief Executive Officer to execute a term lease, substantially as drafted and attached, with Duwamish Waterway Association dba Jim Clark Marina at Terminal 102 for a term of ten years with one 10 - year option to extend. No funding is requested. Request document(s) included a Commission agenda memorandum , presentation slides , and draft lease . Presenter(s): Melinda Miller, Director, Portfolio and Asset Management, and Ted Planta, President, Duwamish Wat erway Association . Ms. Miller explained the key terms of the lease agreement. It is a ground lease for the submerged land beneath the marina . The lease is a 10 - year initial term with one option to extend at the Port’s discretion. Changes from the prior ag reement include elimination of the right of first negotiation, a 28 percent rate increase, and a prevailing wage requirement for contracted work. Other uses for the submerged land were examined, but continuing the lease for Jim Clark Marina was determined to be the best option. Ted Planta, president of the Duwamish Waterway Association, spoke about the association’ s role in operating the marina as a co - op . The motion for approval of agenda item 4 d carried by the following vote: In f avor: Albro, Creighton, Felleman, Gregoire ( 4 ) Absent for the vote: Bowman A recording of this part of the meeting has been made available online . RECESS ED AND RECONVENE D The meeting was recessed at 1:41 p.m. and reconvened at 1:48 p.m., chaired by Commissioner Albro. PORT COMMISSION MINUTES Page 4 of 8 TUESDAY, APRIL 11, 2017 Minutes of April 11, 2017, submitted for review on May 3, 2017, and proposed for approval on May 9, 2017. 6. DIVISION, CORPORATE , AND COMMISSION ACTION ITEMS 6 a . First Reading and Public Hearing of Resolution No. 3731: A Resolution of the Port Commission of the Port of Seattle declaring surplus and no longer needed for port district purposes approximately 4.56 ac res of Port - owned real property, commonly referred to as Tract “A,” and located in the City of Des Moines, King County; and further authorizing the transfer of said real property to the City of Des Moines for stormwater facilities in support of improvement s at Des Moines Creek Business Park. Request document(s) included a Commission agenda memorandum , presentation slides , and draft resolution . A copy of the final draft of Resolution No. 3731 will be made available upon adoption. Presenter(s): Allan Royal, Property Manager, Aviation Properties . This property was part of a group of real property transfers to the City of Des Moines for the purposes of improvements to the Des Moines Creek Business Park . This transfer had not yet happened because construction and approval of the City of Des Moines’ stormwater facility was . PUBLIC HEARING on Resolution No. 3731 Upon a motion and second for First Reading of Resolution No. 3731, Commissioner Albro declared the public hearing for the r esolution open. There was no public comment offered at this time , and the public hearing was closed. The m otion for First Reading of Resolution No. 3731 carried by the following vote: In f avor: Albro, Creighton, Felleman, Gregoire ( 4 ) Absent for the vote: Bowman A recording of this part of the meeting has been made available online . Without objection, the Commission advanced to consideration of – 6e . Motion of the Port of Seattle Commission amending the Port of Seattle Century Agenda greenhouse gas reduction goals. Request document(s) included a draft text of the motion, a Commission agenda memorandum previously presented on February 28, 2017 , and energy production project evaluation framework . A substitute motion was presented at the time of the meeting and was further amended prior to consideration of the motion. The final version of the motion is provided below. Presenter(s): Aaron Pritchard, Commission Issues a nd Policy Manager, and Elizabeth Leavitt, Senior Director, Environment and Sustainability . Previously, a presentation on energy and sustainability policy directives and greenhouse gas emissions reduction goals was made on February 28, 2017 . PORT COMMISSION MINUTES Page 5 of 8 TUESDAY, APRIL 11, 2017 Minutes of April 11, 2017, submitted for review on May 3, 2017, and proposed for approval on May 9, 2017. Mr. Pritchard presented a substitute version of the motion that had been provided prior to the meeting , with changes meant to add additional clarity to the goals that would allow the motion to serve as a stand - alone document . The goals outlined in this mot ion reflect the work of the Energy and Sustainability Committee . Ms. Leavitt noted that significant progress ha d been made in the area of environmental sustainability since the implementation of the Century Agenda. Now, attention is being turned towards t he social elements of sustainability, which this motion begins to address. Implementation of measures to reach the goals set forth in this motion will change the way the Port does business. Over the coming months , conversations will occur across Port depar tments to develop strategies for meeting these goals . In June, the Environment & Sustainability Center of Expertise will report back to the Commission regarding these strategies. Commissioner Gregoire proposed an amended version of the motion in order to provide further clarity and additional context. The text of the motion, as read into the record for consideration, is as follows: The Port of Seattle recognizes we are already experiencing the impacts of climate change. The Port of Seattle is committed to reducing the risks associated with future climate change and impacts on human health and the environment. In order Port of Seattle shall make the following changes to the Century Agenda. The Port of Seattle adopts the following more stringent greenhouse gas emission reduction goals: i. Scope 1 emissions, which are direct greenhouse gas emissions from Port - owned or contro lled sources, shall be: 1. 15 percent below 2005 levels by 2020. This advances the initial Century Agenda goal by 17 years. 2. 50 percent below 2005 levels by 2030. This advances the initial Century Agenda goal by 7 years. 3. Carbon neutral by 2050 or carbon negat ive by 2050. This creates a new long - ii. Scope 3 emissions are emissions the Port has influence over, not direct control. The new Port - wide goals for scope 3 emissions shall be: 1. 50 percent below 2007 levels by 2030. 2. 80 percent below 2007 levels by 2050. The motion to amend the greenhouse gas emissions goals of the Century Agenda, as presented above, carried by the following vote: In f avor: Albro, Creighton, Felleman, Gregoire ( 4 ) Absent for the vote: Bowman A recording of this part of the meeting has been made available online . PORT COMMISSION MINUTES Page 6 of 8 TUESDAY, APRIL 11, 2017 Minutes of April 11, 2017, submitted for review on May 3, 2017, and proposed for approval on May 9, 2017. – 6b. First Reading and Public Hearing of Resolution No. 3732: A Resolution of the Port Commission of the Port of Seattle d eclaring surplus and no longer needed for port district purposes approximately 29,882 square feet of Port - owned real property and located in the City of Burien, King County; and further authorizing the transfer of said real property to the Washington State Department of Transportation for use in construction of the State of Washington SR - 518/Des Moines Memorial Drive Interchange Improvements. Request document(s) included a Commission agenda memorandum , presentation slides , and draft resolution. A copy of t he final draft of Resolution No. 3732 will be made available upon adoption. Presenter(s): Allan Royal, Property Manager, Aviation Properties. Using this piece of land to help move traffic through this area was a key component of the Northeast Redevelopme nt Area plan. Most of the land needed for the off - ramp already belongs to the Department of Transportation . Although this is a very small parcel of land, it is a complicated transaction because the property in question is in the runway protection zone, and is on a contaminated site. PUBLIC HEARING on Resolution No. 3732 Upon a motion and second for First Reading of Resolution No. 3732, Commissioner Albro declared the public hearing for the r esolution open. There was no public comment offered at this time , and the public hearing was closed. The m otion for First Reading of Resolution No. 3732 carried by the following vote: In f avor: Albro, Creighton, Felleman, Gregoire ( 4 ) Absent for the vote: Bowman A recording of this part of the meeting has been made available online . 6 c . Authorization for the Chief Executive Officer to enter into contract to provide cruise passengers onboard airline check - in and airline baggage handling, screening, and storage services for participating carriers at Seattle - Tacoma International Airport for the 2017 cruise season. The estimated cost of this one - year pilot program for 2017 is up to $1.5 million. The charges will be based on actual services rendered. The Port will pay a per - passenger - fee for only those passengers that sign up for the service. Request document(s) included a Commission agen da memorandum and presentation slides . Presenter(s): Michael McLaughlin, Director, Cruise and Maritime Operations; Michael Ehl, Director, Airport Operations; Rosie Courtney, Manager, Cruise, Public Affairs; and Tom Norwalk, President and CEO, Visit Seattl e . PORT COMMISSION MINUTES Page 7 of 8 TUESDAY, APRIL 11, 2017 Minutes of April 11, 2017, submitted for review on May 3, 2017, and proposed for approval on May 9, 2017. This program is designed to enhance passenger experience, and increase tourism dollars spent between disembarking from the ship and going to the airport. It will be the first time a port authority has provided this service as a courtesy, and is designe d to further the Port’s Century Agenda goals by driving benefit to the local economy and tourism, enhanc ing the travel experience, creat ing jobs, and creating opportunities for small business es . The cost of the program will be based on a per - passenger fee ; the Port will only pay for passengers who avail themselves of the service. The estimated expense of $1,365,806 is based on mid - range participation in the program. Visit Seattle has calculated that, at conservative estimate, an average additional $63.64 w ill be spent per passenger, for travelers taking advantage of this service, which would amount to total passenger spending of approximately $13.3 million. Additional benefits to the A irport include more staggered arrival of bags during peak times, reducti on of the number of bags traveling through the main terminal, and more staggered arrival of passengers during peak times. Some of the measures that will be taken to promote this program will include videos on buses and in guest cruise ship cabins and advertisements in travel publications. As this is a pilot program, satisfaction survey s will be conducted to help gauge the effectiveness and gather data regarding spending and activities of passengers who avail themselves of the service. Commissioners inquired about financial participation of airlines and cruise lines in this program. Cruise lines will support the effort by providing staffing for bag handling, facilitation of sign - ups, and printing of boardin g passes. Airlines may also provide so me sta ff support at the A irport, and participate in this program in future years if there is an opportunity to associate airline branding with the service. The motion for approval of agenda item 6 c carried by the following vote: In f avor: Albro, Creighton, Fel leman, Gregoire ( 4 ) Absent for the vote: Bowman A recording of this part of the meeting has been made available online . 6 d . Authorization for the Chief Executive Officer to (1) procure and install replacement seating for all holdrooms in Concourses B and C; (2) design and construct electrical improvements to power 100 percent of the new seating that will allow passengers to charge their electronic devices such as phones, computers, and other personal electronics; (3) utilize Port crews and small works contracts. The amount of this request is $9,226,000. Request document(s) included a Commission agenda memorandum and presentation slides . Presenter(s): Susan Goodspeed, Passenger Experience Program Manager, and Trevor Emtman, Capital Program Leader, Aviation Project Management Group . PORT COMMISSION MINUTES Page 8 of 8 TUESDAY, APRIL 11, 2017 Minutes of April 11, 2017, submitted for review on May 3, 2017, and proposed for approval on May 9, 2017. Current holdroom seating is outdated and worn out. This project will replace old seats with new seating with improved aesthetics , functionality, and accessibility and will eventually pr ovide electrical ou tlets at 100 percent of holdroom seating . Seats will be installed this year; electrical Holdroom layouts will be improved, while maintaining or improving seating capacity. The motion for approval of agenda item 6 d carried by the following vote: In f avor: Albro, Creighton, Felleman, Gregoire ( 4 ) Absent for the vote: Bowman A recording of this part of the meeting has been made available online . Agenda item 6e was considered previously, and the Commission advanced to consideration of – 7. STAFF BRIEFINGS 7 a . 2017 Tourism Marketing Support Program Awardees . Presentation document(s) included a revised Commission agenda memorandum and presentation slides . Presenter(s): Ron Peck, Director, Tourism Development Department . Thirty - two applications were received, with requests amounting to $270,000. Eighteen recipients, located throughout the entire state, have been selected, and will receive $150,000 in Port funds . Mr. Peck pr esented a brief summary of each recipient ’s program to the Commission . A recording of this part of the meeting has been made available online . 8. ADDITIONAL NEW BUSINESS Mr. Soike provided a preview of items coming up at future meetings, including environmental awards and a dialog with the Federal Aviation Administration regarding NextGen and flight paths on April 25, and a progress report on internships on May 9 . A recor ding of this part of the meeting has been made available online . 9 . ADJOURNMENT There was no further business, and the meeting adjourned at 3:45 p.m. Stephanie Bowman Minutes approved: May 9, 2017 .