Commission Meeting Portal

Regular Meeting on Jul 11, 2017 1:00pm

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

                                                         P.O. Box 1209 
                                            Seattle, Washington 98111 
                                              www.portseattle.org 
                                               206.787.3000 
                            APPROVED MINUTES 
                      COMMISSION REGULAR MEETING JULY 11, 2017 
              The Port of Seattle Commission met in a regular meeting Tuesday, July 11, 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 12:03 p.m. 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 three matters relating to litigation and legal risk and one matter relating to sale or lease
               of real estate. Following the executive session, which lasted approximately 60 minutes, the public
             meeting reconvened at 1:15 p.m. Commissioner Albro led the flag salute. 
                3.   SPECIAL ORDERS OF BUSINESS 
              3a.  July 11, 2017, Executive Director Report. 
          Dave Soike, Interim Executive Director, previewed several items on the day's agenda and
           announced the installation of electric vehicle charging stations at airport employee and tenant
             parking areas, and that the 17th  annual Seattle-Tacoma International Airport  Charity Golf
            Tournament, benefitting the Highline Schools Foundation scholarship fund, would take place on
               July 13. 
              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 accordance
             with Commission bylaws.] 
               4a.  Approval of the minutes of the regular and special meetings of June 13, 2017. 
              4b.  Nomination of Mr. Bill Winkelman as Chair of the Neighbors Advisory Committee. 

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

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           TUESDAY, JULY 11, 2017 
           Request document(s) included a Commission agenda memorandum, nomination letter, and
             resume. 
                4c.  Adoption of a technical amendment to the Audit Committee Charter contained in
                Exhibit A to Resolution No. 3613, previously amended on June 28, 2016, to revise
                Section II(D)(3) to read "Inform the Commission of the external auditing firms selected,
               based on an open competitive process, to review external audits conducted on Port of
                Seattle operations, programs, activities, and business processes." 
           Request document(s) included a Commission agenda memorandum and redline version of the
               charter. 
              4d.  Authorization for the Executive Director to execute Change Order 12 to Contract MC-
               0318388, Concourse B 400Hz Gate Improvement Project at Seattle-Tacoma
                International Airport, to extend the contract duration by 64 calendar days and for the
                amount of $186,068. No additional funds are being requested (CIP #C800019). 
            Request document(s) included a Commission agenda memorandum. 
               4e.  Authorization for the Executive Director to execute Change Order 17 to Contract MC-
               0318605, C60 Interim Transportation Security Administration  Search Room
               Expansion/Enhancement Project at Seattle-Tacoma International Airport, to extend the
               contract duration by 84 calendar days and for the deductive amount of $18,312.00. No
                additional funds are being requested (CIP #C800825). 
            Request document(s) included a Commission agenda memorandum. 
                 4f.   Authorization for the Executive Director to (1) execute a contract amendment with
             Advanced Application Design Inc. for additional hardware, software, and vendor
                services for the Airport Subway Information Displays Project and (2) amend the current
             approved authorization for additional informational displays and features by $482,000
                for a total project cost not to exceed $3,052,000 (CIP #C800782). 
            Request document(s) included a Commission agenda memorandum. 
              4g.  Authorization for the Executive Director to (1) advertise and execute a construction
               contract for the Gate C3 Holdroom Expansion project at Seattle-Tacoma International
                Airport; (2) use Port crews in executing the project; and (3) increase authorized funds
             by $3,000,000. This authorization is for $5,650,000 of a total project cost of $6,300,000
                (CIP #C800722). 
             Request document(s) included a Commission agenda memorandum and presentation slides. 



                  Minutes of July 11, 2017, submitted for review on August 4, 2017, and proposed for approval on August 8, 2017.

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           TUESDAY, JULY 11, 2017 
          The motion for approval of consent items 4a, 4b, 4c, 4d, 4e, 4f, and 4g carried by the
             following vote: 
             In favor: 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 
              Public comment was received from the following individual(s): 
                    Arthur West, WASHLITE, regarding the selection of a new Internal Audit Director. Mr.
                    West submitted written materials, which are included here as minutes Exhibit A and are
                      available for public review. 
                    John Persak, Seattle resident, in support of energy and sustainability initiatives. 
              A recording of this part of the meeting has been made available online. 
                6.   DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
             As noted on the agenda, the Commission advanced to consideration of  
               6c.  Motion appointing Glenn Fernandes as Internal Audit Director of the Port of Seattle
                 effective July 24, 2017. 
              Request document(s) included a draft motion. A final draft of the adopted motion is attached. 
             Presenter(s): Aaron Pritchard, Commission Issues and Policy Manager. 
             As chair of the Audit Committee, Commissioner Gregoire described Mr. Fernandes's qualifications
             and background, and Mr. Fernandes made a brief statement. 
          The motion to appoint Mr. Fernandes Internal Audit Director of the Port of Seattle effective
             July 24, 2017 (agenda item 6c) 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. 
              6d.  Authorization for the Executive Director to (1) proceed with the Supplier Outreach and
              Procurement System project; (2) procure hardware, software, vendor services, and
              maintenance; and (3) use Port staff for implementation, for a total project cost not to
               exceed $800,000 (CIP #C800907). 
            Request document(s) included a Commission agenda memorandum. 
              Presenter(s): Dave McFadden, Managing Director, Economic Development, and Sofia Mayo,
             Senior Manager, Service Agreements, Central Procurement Administration. 

                  Minutes of July 11, 2017, submitted for review on August 4, 2017, and proposed for approval on August 8, 2017.

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           TUESDAY, JULY 11, 2017 

            Commissioners requested additional information regarding the update schedule and whether the
               entire system is a standard product or some pieces are being developed speicifically for the Port.
         Some components pertaining to procurement will be developed in-house, and the vendor will
              provide regular updates. 
             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.  Second Reading and Final Passage of Resolution No. 3735: A Resolution of the Port
             Commission of the Port of Seattle authorizing the issuance and sale of intermediate
                  lien revenue and refunding bonds in one or more series in the aggregate principal
             amount of not to exceed $800,000,000, for the purpose of financing or refinancing
                 capital improvements to aviation facilities and for the purpose of refunding certain
               outstanding revenue bonds of the Port; setting forth certain bond terms and
                covenants; and delegating authority to approve final terms and conditions and the sale
                of the bonds. 
             Request document(s) included a Commission agenda memorandum and draft resolution. A copy of
              the adopted version of Resolution No. 3735 is attached. 
              Presenter(s): Elizabeth Morrison, Director, Corporate Finance. 
             Previously, First Reading of Resolution No. 3735 was approved on June 27, 2017. 
             Ms. Morrison explained that there have been no changes to this resolution since First Reading. At
              that time, Commissioners had a question about the debt-to-asset ratio; Ms. Morrison explained that
               it is 45 percent, which is slightly better than Moody's rating for airports of 54 percent. 
          The motion for approval of Second Reading and Final Passage of Resolution No. 3735 
             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. 
                 6f.   Authorization for the Executive Director to (1) execute a professional services contract,
                   (2) execute an interlocal agreement with King County for the operation and
                maintenance of traffic signals, (3) proceed with the design and preparation of contract
                bid documents for the C102162 Air Cargo Road Safety Improvements project, (4) utilize
               Port crews and small works contracts to complete the early pavement repair work, and
                   (5) transfer $3,019,590 of budget from the C800324 Cell Phone Lot project. This
                 authorization is $3,102,500 for a total of $6,544,000 between the two projects. 
            Request document(s) included a Commission agenda memorandum and vicinity map. 

                  Minutes of July 11, 2017, submitted for review on August 4, 2017, and proposed for approval on August 8, 2017.

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           TUESDAY, JULY 11, 2017 

              Presenter(s): Jeffrey Brown, Director Aviation Facilities and Capital Programs; Heather Bornhorst,
             Capital Project Manager, Aviation Project Management. 
                      It was reported that cell phone lot traffic has increased significantly since it was built in 2014,
              necessitating better traffic controls, and that Air Cargo Road is in need of repair. Staff explained
              that as the work areas overlap, combining these into one project will save time and money. 
            Regarding the cell phone lot portion of the project, the Commission asked about electric car
             charging stations, restroom facilities, and increased capacity. It was explained that the scope of
              this particular project is only to improve ingress and egress. 
             The motion for approval of agenda item 6f 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. 
                7.   STAFF BRIEFINGS 
              Without objection, the following agenda item  
               7a.  Energy and Sustainability Policy Directive Resource Assessment. 
                was laid on the table. 
              7b.  Stage 3 Mechanical Energy Conservation Project (CIP #C800658). 
             Presentation document(s) included a Commission agenda memorandum and presentation slides. 
              Presenter(s): Mike Tasker, Senior Manager, Aviation Facilities & Infrastructure, and Leslie Stanton,
             Manager, Aviation Environmental Programs. 
            Since 2001, 50 conservation projects have been completed at the airport. Projects with the most
             dramatic financial return were completed first. Projects that remain have large benefits from an
            energy conservation standpoint, but smaller benefits from a financial standpoint. Stage 3
             Mechanical Energy Conservation is such a project. 
              Commissioners inquired about valuation of carbon output in order to better incorporate the benefits
              from projects like this one into the Port's annual returns, and for clarification regarding the project
             schedule. 
              A recording of this part of the meeting has been made available online. 
                8.   ADDITIONAL NEW BUSINESS 
           Commissioner Felleman commented on adjusting the starting time of the Commission's regular
            meetings and mentioned the recent 100th anniversary of the Hiram Chittenden (Ballard) Locks on
             the Lake Washington Ship Canal. 

                  Minutes of July 11, 2017, submitted for review on August 4, 2017, and proposed for approval on August 8, 2017.

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           TUESDAY, JULY 11, 2017 

                9.      RECESSED AND ADJOURNED 
           The meeting was recessed at 2:31 p.m. to an executive session estimated to last 60 minutes to
             discuss one matter relating to qualifications for public employment. Following the executive
             session, which lasted approximately 75 minutes, the Commission adjourned at 4:15 p.m. without
               returning to public session. 
            Stephanie Bowman 
             Secretary 
             Minutes approved: August 8, 2017. 














                  Minutes of July 11, 2017, submitted for review on August 4, 2017, and proposed for approval on August 8, 2017.