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Regular Meeting on Jun 13, 2017 1:00pm

Minutes for the Port Of Seattle Commission meeting, held on Jun 13, 2017 1:00pm

                                                                              P.O. Box 1209 
                                                                Seattle, Washington 98111 
                                                                   www.portseattle.org 
                                                                      206.787.3000 
                                         APPROVED MINUTES 
                                 COMMISSION REGULAR MEETING JUNE 13, 2017 
                The Port of Seattle Commission met in a regular meeting Tuesday, June 13, 2017, at Port of
                     Seattle  Headquarters,  Commission  Chambers,  2711  Alaskan  Way,  Seattle,  Washington. 
                   Commissioners Albro, Bowman, Creighton, Felleman, and Gregoire were present. 
                       1.    CALL TO ORDER 
                    The meeting was called 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 executive session estimated to last 60 minutes
                      to discuss one matter relating to litigation and legal risk and performance of a publicly bid contract. 
                   Following the executive session, which lasted approximately 60 minutes, the public meeting
                    reconvened at 1:20 p.m. Commissioner Albro led the flag salute. 
                       3.    SPECIAL ORDERS OF BUSINESS 
                      3a.  June 13, 2017, CEO Report. 
                Dave Soike, Interim  CEO, previewed several items on the day's agenda and announced
                  developments related to the Northeast Redevelopment Area commercial development in Burien,
                     City of Auburn business incubator program, career partners, and Port Police support for the
                   Special Olympics. Presentation slides were provided at the time of the meeting and are included
                     here as minutes Exhibit A. 
                 Commissioner Albro noted that the Commission intends to engage in conversation about recent
                   proposals at the federal level to privatize air traffic control functions at U.S. airports, and may
                      develop a policy position on this matter. 
                     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 areconsidered 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 accordance
                   with Commission bylaws.] 
                      4a.  Approval of the minutes of the regular meetings of May 9 and 23, 2017. 

                               Digital recordings of the meeting proceedings and meeting materials are available online  www.portseattle.org.

              PORT COMMISSION REGULAR MEETING MINUTES                     Page 2 of 8 
                TUESDAY, JUNE 13, 2017 
                     4b.  Authorization  for  the  Chief  Executive  Officer  to  execute  an  Assignment  and
                    Assumption of Ground Lease Agreement at the Des Moines Creek Business Park
                   Phase III from the existing tenant, Des Moines Creek Business Park Phase III, LLC, to
                       the new tenant - Des Moines Creek ILP LLC. 
                 Request document(s) included a Commission agenda memorandum, assignment and assumption
                    of lease, and lease amendment. 
                      4c.  Authorization for the Chief Executive Officer to conduct a competitive procurement and
                     execute a service agreement with a consulting firm to provide investment and plan
                      advisory services to the 457 Deferred Compensation Plan Administrative Committee.
                   The agreement will be for three years with three possible one-year extensions. The
                       contract will be effective February 4, 2018, and the total cost of the contract over the
                       maximum six-year duration is estimated to be $500,000. 
                  Request document(s) included a Commission agenda memorandum. 
                     4d.  Authorization for the Chief Executive Officer to design and prepare construction
                   documents for the enhancement of Airport Operations Area perimeter fence and
                     access gate E-105 at the Seattle-Tacoma International Airport; and advertise and
                     execute a construction contract for the AOA Perimeter Fence Line Standards
                        Compliance project at Seattle-Tacoma International Airport (CIP #C800842). 
                   Request document(s) included a Commission agenda memorandum and presentation slides. 
                      4e.  Authorization for the Chief Executive Officer to execute a new collective bargaining
                       agreement between the Port of Seattle and the International Brotherhood of Teamsters,
                      Local 117, representing Police Specialists in the Port of Seattle Police Department,
                        covering the period from July 1, 2015, through June 30, 2018. 
                  Request document(s) included a Commission agenda memorandum and bargaining agreement. 
                       4f.   Authorization for the Chief Executive Officer to execute a new collective bargaining
                    agreement between the Port of Seattle and the Teamsters Local Union No. 117,
                       representing the Rental Car Facility Bus Drivers, covering a period from March 15,
                        2016, through March 14, 2019. 
                  Request document(s) included a Commission agenda memorandum and bargaining agreement. 
                     4g.  Authorization for the Chief Executive Officer to execute a new collective bargaining
                       agreement between the Port of Seattle and the International Longshore and Warehouse
                    Union Local 9 representing Aviation Operations covering the period from January 1,
                       2016, through December 31, 2019. 
                  Request document(s) included a Commission agenda memorandum and bargaining agreement. 


                       Minutes of June 13, 2017, submitted for review on June 26, 2017, and proposed for approval on July 11, 2017.

              PORT COMMISSION REGULAR MEETING MINUTES                     Page 3 of 8 
                TUESDAY, JUNE 13, 2017 
                     4h.  Authorization for the Chief Executive Officer to execute a new collective bargaining
                       agreement between the Port of Seattle and the International Longshore and Warehouse
                    Union  Local  9  representing  Senior  Access  Controllers,  Construction  Support
                       Specialists, and Full Employee Screeners in the Aviation Security Department covering
                       the period from January 1, 2016, through December 31, 2019. 
                 Request document(s) included a revised Commission agenda memorandum  and bargaining
                   agreement. 
               The motion for approval of consent items 4a, 4b, 4c, 4d, 4e, 4f, 4g, and 4h carried by the
                    following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
                     A recording of this part of the meeting has been made available online. 
                       5.    PUBLIC TESTIMONY 
                     Public comment was received from the following individual(s): 
                             Michael Pavelic, ILWU Local 9, in support of  Aviation Operations and Employee
                              Screener collective bargaining agreements (agenda items 4g and 4h). 
                             Regina Glenn, President, PCC Inc., regarding small business. Ms. Glenn submitted
                                written materials, which are included here as minutes Exhibit B. 
                             Kathy Casey, Lucky Louie Fish Shack, in appreciation of the Airport Dining & Retail 
                               lease group 3 competitive process. 
                             Stacy House, Lucky Louie Fish Shack, in appreciation of the Airport Dining & Retail
                               lease group 3 competitive process. 
                          Bob Donegan, President, Ivar's,in criticism of the Airport Dining & Retail lease group 3
                              competitive process. Mr. Donegan submitted written materials, which are included here
                               as minutes Exhibit C. 
                            Lisa Bray, Shift Manager, Ivar's,in criticism of the Airport Dining & Retail lease group 3
                              competitive process. Ms. Bray submitted several pages of printed materials which are
                               included here as minutes Exhibit D. 
                         Suzette Graham, General Manager, Ivar's,in criticism of the Airport Dining & Retail
                               lease group 3 competitive process. 
                             Stephen E. Douglas, Vice President, Development, HMS Host, in appreciation of the
                               Airport Dining & Retail lease group 3 competitive process. 
                             Steven Hooper, Seattle Resident, regarding the Airport Dining & Retail lease group 3
                               competitive process. 
                          Jerrod Stafford, Vice President, Beecher's,in criticism of the Airport Dining & Retail
                               lease group 3 competitive process. 
                             Alex Il, UFCW 29, in support of the proposed competitive evaluation process for the
                               Airport Dining & Retail lease group 4 competitive process. 
                             Steve Sego, Owner, Waterman Mitigation, in criticism of the Airport Dining & Retail lease
                              group 3 competitive process. 

                       Minutes of June 13, 2017, submitted for review on June 26, 2017, and proposed for approval on July 11, 2017.

              PORT COMMISSION REGULAR MEETING MINUTES                     Page 4 of 8 
                TUESDAY, JUNE 13, 2017 
                             Pat Murrey, Executive Vice President, SSP America, in appreciation of the Airport Dining
                               & Retail lease group 3 competitive process. 
                             Nate Miles, owner, HighFlyers, in appreciation of the Airport Dining & Retail lease group
                               3 competitive process. 
                             Joe Waller, CEO, Pacific Gateway, in appreciation of the Airport Dining & Retail lease
                              group 3 competitive process. 
                             Daniel Nguyen, CEO, Bambuza, regarding the Airport Dining & Retail lease group 3
                               competitive process. 
                             Katharine  Lam,  Bambuza,  regarding  the  Airport  Dining  &  Retail  lease  group  3
                               competitive process. 
                             Erik Ward, Vice President, Pacific Gateway, in appreciation of the Airport Dining & Retail
                               lease group 3 competitive process. 
                             David Kovanen, Browns Point resident, in criticism of the Airport Dining & Retail lease
                           group 3 competitive process. Mr. Kovanen submitted written comments, which are
                               included here as minutes Exhibit E. 
                             Henry Yates, Tabor 100, in support of the proposed competitive evaluation process for
                                 the Airport Dining & Retail lease group 4 competitive process. Mr. Yates submitted
                              written comments, which are included here as minutes Exhibit F. 
                             Dennis Noland, President, Shiftpoint Strategies, in criticism of the Airport Dining & Retail
                               lease group 3 competitive process. 
                             Stefan Moritz, Unite Here Local 8, in support of the proposed competitive evaluation
                               process for the Airport Dining & Retail lease group 4 competitive process. 
                             Lucia Flugencio, Unite Here Local 8, in support of the proposed competitive evaluation
                               process for the Airport Dining & Retail lease group 4 competitive process. 
                             Ikram Afinwala, Unite Here Local 8, in support of the proposed competitive evaluation
                               process for the Airport Dining & Retail lease group 4 competitive process. 
                             Jennifer Fulton, Unite Here Local 8, in support of the proposed competitive evaluation
                               process for the Airport Dining & Retail lease group 4 competitive process. 
                             Marissa Flaven, Unite Here Local 8, in support of the proposed competitive evaluation
                               process for the Airport Dining & Retail lease group 4 competitive process. 
                             Nicole Grant, King County Labor Council, in support of the proposed competitive
                               evaluation process for the Airport Dining & Retail lease group 4 competitive process. 
                             Herb  Krohn,  State  Director,  United  Transportation  Union,  SMART  Transportation
                               Division, in support of the proposed competitive evaluation process for the Airport Dining
                               & Retail lease group 4 competitive process. 
                             Scott Baldwin, Director of Wholesale, Caf Ladro, in appreciation of the Airport Dining &
                               Retail lease group 3 competitive process. 
                             Roz Edison, Co-Owner, Good Bar, in appreciation of the Airport Dining & Retail lease
                              group 3 competitive process. 
                             Michelle Linden, Co-Owner, Atelier Drome Architecture, regarding Airport Dining &
                                  Retail. 
                             Don Morgan, Bellevue resident, in criticism of the Airport Dining & Retail lease group 3
                               competitive process. 
                             Evelyn Lemon, Seattle resident, in criticism of the Airport Dining & Retail lease group 3
                               competitive process. 

                       Minutes of June 13, 2017, submitted for review on June 26, 2017, and proposed for approval on July 11, 2017.

              PORT COMMISSION REGULAR MEETING MINUTES                     Page 5 of 8 
                TUESDAY, JUNE 13, 2017 
                             Keith Singleton, President, Alaskan Leader Seafoods, in criticism of the Airport Dining &
                               Retail lease group 3 competitive process. 
                             Russell H. Hazzard, President, MG2, regarding Airport Dining & Retail. 
                             Barry Faught, Owner, Broadcast Coffee, in appreciation of the Airport Dining & Retail
                               lease group 3 competitive process. 
                             Howard Greenwich, Policy Advisor, Puget Sound Sage, in support of the proposed
                               competitive evaluation process for the Airport Dining & Retail lease group 4 competitive
                              process. 
                             Bianca, Szyperski, Owner, Jujubeet, in appreciation of the Airport Dining & Retail lease
                              group 3 competitive process. 
                             Jordan Royer, Seattle resident, in criticism of the Airport Dining & Retail lease group 3
                               competitive process. 
                     A recording of this part of the meeting has been made available online. 
                    Without objection, the Commission advanced to consideration of  
                       7.    STAFF BRIEFINGS 
                      7a.  Briefing on Results from Airport Dining and Retail Lease Group 3, Insights from the
                       Lease Group 3 Solicitation Process and Proposed Opportunities for Lease Group 4. 
                   Presentation document(s) included a Commission agenda memorandum, presentation slides, and
                    attachment. 
                     Presenter(s): Lance Lyttle, Managing Director, Aviation, and James Schone, Director, Aviation
                  Commercial Management. 
                   Interim CEO Dave Soike and Aviation Managing Director Lance Lyttle summarized the competitive
                    selection process for Airport Dining and Retail (ADR) lease group 3 bids, noting the Commission's
                     2014 policy guidance, increased competition for a limited number of dining and retail opportunities,
                    increased outreach to potential bidders, and the presence of independent observers throughout the
                    competitive selection process. Mr. Soike announced that all of the bids for the lease group 3
                    package had been made available for public review on the Port's website. 
                   Mr. Schone presented the business statistics and performance measures for lease group 3. He
                   described an increase in registration of Airport Concessions Disadvantaged Business Enterprises
                   (ACDBEs) and provided an update on the employment continuity pool. Insights gained from lease
                  group 3 and recommendations for the competitive process for lease group 4 were presented.
                    Recommendations included the following: 
                          (1) Disqualification of firms not fully compliant with providing back wages and benefits in
                           accordance with City of SeaTac Ordinance 13-1020 (Proposition One), codified as SeaTac
                            Municipal Code Chapter 7.45; 
                        (2) Increasing emphasis on wage and medical/retirement benefits over other employer-offered
                                benefits; 

                       Minutes of June 13, 2017, submitted for review on June 26, 2017, and proposed for approval on July 11, 2017.

              PORT COMMISSION REGULAR MEETING MINUTES                     Page 6 of 8 
                TUESDAY, JUNE 13, 2017 
                        (3) Strengthen scoring for small business participation through adjustment of point allocation
                               in the small business participation criterion; 
                      (4) Encourage preference for local concepts and ownership by allocating 10 points of the
                             Concept Development criterion to creation of a Northwest sense of place; 
                         (5) Retention of competitive leasing for all ADR opportunities; and 
                        (6) Requiring submission of labor peace requirements the terms of which would not be
                             stipulated by the Port by respondents, including small businesses operating national brand
                             franchises, and otherwise exempting small businesses with 35 or fewer badged Airport
                          employees. 
                    Commissioners asked for clarification about determination of Proposition One compliance and how
                      to  provide  appropriate  scoring  to  recognize  proven  quality  and  Northwest  sense  of  place.
                 Commissioners discussed the benefits and challenges of using a competitive selection process
                compared to other alternatives to lease opportunities in the ADR program. Commissioners asked
                    for more information about negative comments about the bid evaluation consultant. Commissioners
                   commented on the labor peace recommendations for lease group 4. 
                     A recording of this part of the meeting has been made available online. 
              RECESSED AND RECONVENED 
                    The Commission recessed at 3:50 p.m. and reconvened at 4:00 p.m., chaired by Commissioner Albro. 
                    The Commission returned to consideration of  
                       6.    DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
                     Agenda items 6a and 6b were laid on the table without objection. 
                      6c.  Second Reading and Final Passage of Resolution No. 3734, a Resolution of the Port
                       Commission of the Port of Seattle amending Resolution No. 3727, deleting the position
                            title of Chief Executive Officer and replacing it with the position title of Executive
                         Director; deleting the position title of Chief Executive Officer and replacing it with the
                       position title of Executive Director in all Port of Seattle resolutions and motions
                         currently in effect; and establishing a dual direct reporting relationship of the General
                       Counsel to the Executive Director and the Port Commission. 
                   Request document(s) included a Commission agenda memorandum and draft resolution. A copy of
                     the adopted version of Resolution No. 3734 is attached for ease of reference. 
                    Presenter(s): Paul White, Commission Clerk. 
                    Previously, First Reading of Resolution No. 3734 was approved on May 23, 2017. 



                       Minutes of June 13, 2017, submitted for review on June 26, 2017, and proposed for approval on July 11, 2017.

              PORT COMMISSION REGULAR MEETING MINUTES                     Page 7 of 8 
                TUESDAY, JUNE 13, 2017 
                  The motion for Second Reading and Final Passage of Resolution No. 3734 (agenda item 6c) 
                    carried by the following vote: 
                    In favor: Albro, Felleman, Gregoire (3) 
                  Absent for the vote: Bowman, Creighton 
                     A recording of this part of the meeting has been made available online. 
                     6d.  Request  that  the  Port  of  Seattle  Commission  exercise  its  authority  under  RCW
                       35.21.278 to (1) contract with a community service organization, Forterra, without
                      regard to public bidding laws for public works and (2) authorize the Chief Executive
                         Officer to enter into a three-year contract with Forterra from June 20, 2017, through
                        June 20, 2020, for a total cost of $450,000. This authority is also granted through RCW
                        53.19.020(5) which determines that a competitive solicitation process is not appropriate
                       or cost-effective. This contract will allow Forterra to implement the Green Cities
                       Partnership, which includes three objectives for long-term environmental stewardship
                        in the target cities. The work includes a tree canopy assessment and strategic planning
                          for  local  urban  forestry  opportunities,  community  engagement,  and  project
                        implementation (e.g. habitat restoration work parties, environmental education events,
                         and stakeholder outreach in the target cities). 
                   Request document(s) included a Commission agenda memorandum and presentation slides. 
                     Presenter(s):  Pearse  Edwards,  Director,  Government  Relations,  and  Christina  Billingsley,
                  Environmental Engagement Program Manager. 
                  Commissioners received an update on the implementation of the Airport Ecology Fund for Airport
                     communities, including the criteria and outreach involved in developing opportunities for use of the
                  fund. Complementary approaches for small grants and use of the Green Cities Partnership
                    Program, to be administered by Forterra, were presented. The justifications for the Commission's
                     exercise of its authority to execute a sole-source contract were summarized. 
                   The motion for approval of agenda item 6d carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
                     A recording of this part of the meeting has been made available online. 
                      6e.  Authorization for the Chief Executive Officer to: (1) execute cost-sharing agreement
                       with Lockheed-Martin for the Terminal 5 Pile Removal project; (2) proceed with the
                        construction phase; and (3) advertise and execute a major public works contract, all for
                        an amount not to exceed $6,500,000 with a total estimated project cost of $6,800,000. 
                  Request document(s) included a Commission agenda memorandum and agreement. 
                     Presenter(s): Lindsay Pulsifer, Managing Director, Maritime, and Anne Porter, Capital Project
                   Manager V, Seaport Project Management. 

                       Minutes of June 13, 2017, submitted for review on June 26, 2017, and proposed for approval on July 11, 2017.

              PORT COMMISSION REGULAR MEETING MINUTES                     Page 8 of 8 
                TUESDAY, JUNE 13, 2017 
                   The nature of the environmental cleanup work to be conducted at Terminal 5 was summarized. In
                     addition to removal of 2,000 creosote pilings and related structures,  the work will include
                       installation  of  four  steel  piles,  excavation  and  regrading,  and  installation  of  erosion-control
                     measures. It was reported that by the terms of the Port's lease obligation, the work, which is to be
                    conducted in a Superfund cleanup site, is expected to be complete by March 2018. Commissioners
                     asked about details of the mitigation work, particularly disturbance of polluted sediments. 
                   The motion for approval of agenda item 6e carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
                     A recording of this part of the meeting has been made available online. 
                     Without objection, agenda items 6f and 6g were laid on the table. 
                       7.    STAFF BRIEFINGS 
                Agenda item 7a was considered previously, and agenda item 7b was laid on the table without
                      objection. 
                       8.    ADDITIONAL NEW BUSINESS  None. 
              RECESSED AND ADJOURNED 
                The meeting was recessed at 4:32 p.m. to an executive session estimated to last 30 minutes to
                   discuss one matter relating to qualifications for public employment. Following the executive
                    session, which lasted approximately 45 minutes, the Commission adjourned at 5:16 p.m. without
                      returning to public session. 
                 Stephanie Bowman 
                    Secretary 
                    Minutes approved: July 11, 2017. 






                       Minutes of June 13, 2017, submitted for review on June 26, 2017, and proposed for approval on July 11, 2017.