Commission Meeting Portal

Regular Meeting on Oct 10, 2017 1:00pm

Minutes for the Port Of Seattle Commission meeting, held on Oct 10, 2017 1:00pm

                                                                              P.O. Box 1209 
                                                                Seattle, Washington 98111 
                                                                   www.portseattle.org 
                                                                      206.787.3000 
                                         APPROVED MINUTES 
                              COMMISSION REGULAR MEETING OCTOBER 10, 2017 
                The Port of Seattle Commission met in a regular meeting Tuesday, October 10, 2017, at Port of
                     Seattle  Headquarters,  Commission  Chambers,  2711  Alaskan  Way,  Seattle,  Washington. 
                   Commissioners Albro, Bowman, Creighton, and Gregoire were present. Commissioner Felleman 
                     was present until 3:50 p.m. 
                       1.    CALL TO ORDER 
                    The meeting was called to order at 12:05 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, one matter relating to litigation, legal
                      risk, and sale or lease of real estate, one matter relating to litigation, legal risk, and performance on
                a publicly bid contract, and one matter related to qualifications for public employment. 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 ORDERS OF BUSINESS 
                      3a.  October 10, 2017, Executive Director Report. 
                Dave Soike, Interim  Executive Director, previewed several items on the day's agenda and
                commented on recent activities related to development of sustainable aviation fuels, airport
                    emission reduction efforts, and equity and diversity promotion. Mr. Soike announced the upcoming
                    retirement of Maritime Managing Director Lindsay Pulsifer and the selection of Stephanie Jones
                    Stebbins, Seaport Environment and Planning Director, to succeed Ms. Pulsifer as Maritime
                    Managing Director. 
                     A recording of this part of the meeting has been made available online. 
                     3b.  Authorization for the Executive Director to execute Economic Development Partnership
                        Program contracts with the Cities of Auburn, Bellevue, Covington, Kirkland, Newcastle,
                     Normandy Park, North Bend, Redmond, Sammamish, SeaTac, Snoqualmie, and Tukwila
                        to implement local economic development initiatives for an amount not to exceed
                        $414,150, as detailed below. 
                  Request document(s) included a Commission agenda memorandum, presentation slides, and the
                   2016 City Economic Development Partnership Program Final Report. 

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

              PORT COMMISSION MEETING MINUTES                             Page 2 of 5 
                TUESDAY, OCTOBER 10, 2017 
                     Presenter(s): Dave McFadden, Managing Director, Economic Development; Ellen Wolfe, City of
                     Kirkland; Mark Hofman, City of Snoqualmie; Mark Hoppen, City of Normandy Park; and Jesse
                     Cando, City of Bellevue. 
                The commissioners received a presentation on the efforts of the 2016 Economic Development
                    Partnership Program and the Port-supported 2017 economic development activities of the cities of
                    Kirkland, Snoqualmie, Normandy Park, and Bellevue. 
                   The motion for approval of agenda item 3b 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. 
                       4.    UNANIMOUS CONSENT CALENDAR 
                    [Clerk's Note: Items onthe Unanimous Consent Calendar 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.] 
                   At the request of Commissioner Albro, agenda item 4c was removed from the Unanimous Consent
                    Calendar for separate discussion and vote. 
                      4a.  Approval of the Claims and Obligations for the period September 1-30, 2017, including
                     accounts payable check nos. 919482-919947 in the amount of $5,515,719.28 accounts
                     payable ACH nos. 002336-002928 in the amount of $44,955,140.80; accounts payable
                       wire transfer nos. 014735-014752 in the amount of $8,581,459.38; payroll check nos.
                     187313-187655 in the amount of $406,902.34; and payroll ACH nos. 822297-826362 in
                         the amount of $9,231,894.12 for a fund total of $68,691,115.92. 
                  Request document(s) included a Commission agenda memorandum. 
                     4b.  Authorization for the Executive Director to execute one professional services indefinite
                         delivery, indefinite quantity contract for project control support services for a total
                        amount not to exceed $5 million and a contract ordering period of five years. There is
                        no funding associated with this request. 
                  Request document(s) included a Commission agenda memorandum. 
                    As noted above, agenda item 4c was temporarily postponed. 
                     4d.  Authorization  for  the  Executive  Director  to:  (1)  complete  design  and  prepare
                      construction documents for the Fishermen's Terminal Docks 3, 4, and 5 Fixed Pier
                     Improvements; and (2) prepare and apply for permits for an amount not to exceed
                        $720,000 out of a total estimated project cost of $6,400,000. (CIP #C800531) 
                   Request document(s) included a Commission agenda memorandum, report, and presentation. 
                      4e.  Update of the Commission's 2017 international travel plan to include additional travel
                          in the fourth quarter. 

                       Minutes of October 10, 2017, submitted for review on February 21, 2018, and proposed for approval on February 27, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 3 of 5 
                TUESDAY, OCTOBER 10, 2017 

                  Request document(s) included a Commission agenda memorandum. 
                   The motion for approval of consent items 4a, 4b, 4d, and 4e 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 
                     An opportunity for public comment was provided, but none was offered at this time. 
                    The Commission advanced to consideration of  
              ITEMS REMOVED FROM CONSENT 
                      4c.  Approval of the 2018  2022 Long Range Plan. [subsequently laid on the table] 
                  Request document(s) included a Commission agenda memorandum, presentation slides, and
                   2018-2022 plan document. 
                     Presenter(s): Dave Caplan, Senior Director, Strategic Initiatives. 
                 Commissioners commented on textual errors, the need to amend the Century Agenda to remain
                    consistent with the long-range plan, incorporation of Northwest Seaport Alliance efforts to grow
                   container volumes, and the need to reflect the goal of increasing support for small businesses by
                     targeting  the  number  of  firms  doing business,  in addition  to  the amount of  money  spent. 
                    Refinements to the plan on these subjects were requested for consideration on October 24, 2017. 
                     Further consideration of agenda item 4c was laid on the table without objection. 
                     A recording of this part of the meeting has been made available online. 
                       6.    DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
                      6a.  Motion of the Port of Seattle Commission: The Port of Seattle Commission directs the
                       Aviation  Managing Director  to  (1) continue  the  Signatory  Lease and  Operating
                    Agreement 2013-2017 at Seattle-Tacoma International Airport on month-to-month
                        holdover status until the earliest of (a) March 31, 2018, or (b) Port Commission approval
                        of a new Signatory Lease and Operating Agreement to commence before March 31,
                      2018; and (2) immediately implement Resolution No. 3677, as amended, in the event a
                  new Signatory Lease and Operating Agreement has not commenced by April 1, 2018.
                   The new Signatory Lease and Operating Agreement shall include a provision
                         identifying use of non-aeronautical revenue, among other funding sources, for the
                        purposes of supporting a sustainable aviation fuels program at the airport. 
                    Request document(s) included a draft motion, as revised October 6, 2017. 
                    Presenter(s): Borgan Anderson, Director, Aviation Finance & Budget. 

                       Minutes of October 10, 2017, submitted for review on February 21, 2018, and proposed for approval on February 27, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 4 of 5 
                TUESDAY, OCTOBER 10, 2017 
                    Previously, a status update on signatory lease and operating agreement negotiations was provided
                   on September 12, 2017. 
                     Mr. Anderson described continued efforts to obtain agreement on an airline lease, or signatory lease
                     and operating agreement, at the airport and the need for the time extension contained in the motion. 
                   The motion for approval of agenda item 6a 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 
                      7a.  2018 Operating Division Budgets Briefing. 
                   Presentation document(s) included a Commission agenda memorandum and presentation slides. 
                     Presenter(s): Borgan Anderson, Director, Aviation Finance & Budget; Lance Lyttle, Managing
                      Director, Aviation; Kelly Zupan, Director, Maritime Finance & Budget; Lindsay Pulsifer, Managing
                   Director, Maritime, and Dave McFadden, Managing Director, Economic Development. 
                    Aviation Division 
                 Commissioners commented on and requested clarifications regarding additions of full-timeequivalent
                    positions and correlation of employee numbers to growth in passengers and airport
                   operations. They inquired about anticipated  reduced rental car revenue, the ability to track use of
                      light rail and other forms of public transit to and from the airport, and projected growth in air cargo. 
                   Commissioners discussed the status of federal budgeting for Customs and Border Protection and
                    the Transportation Security Administration. It was noted that  the Port has a customer-service
                       interest in helping to fund overtime for federal staff in order to better manage passenger throughput
                    at the airport. Commissioners commented on their desire for a comprehensive review of
                    disparity in port contracting and the conduct of port business in general. Commissioners requested
                      clarifications about parking revenue relative to taxi fees. 
                    Commissioners stressed the need to verify compliance with street-pricing exemptions in the Airport
                   Dining and Retail program. [Clerk's Note: On November 24, 2015, the Commission authorized
                       temporary pricing flexibility relating to street pricing. Pricing increases for tenants meeting specific
                       criteria for employee compensation and benefits were permitted up to 10 percent above street
                     pricing and were to be phased out gradually by January 1, 2020.] 
                    More information about the proposed purchase of employee parking buses was requested. 
                   Maritime Division 
                   Commissioners commented on and requested clarifications regarding the Port's cruise line of
                     business, its return on investment to the community, opportunities for revenue growth in this line of

                       Minutes of October 10, 2017, submitted for review on February 21, 2018, and proposed for approval on February 27, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 5 of 5 
                TUESDAY, OCTOBER 10, 2017 
                    business, and funding alternatives for the cruise baggage valet program. Capital investment at the
                      Bell Harbor International Conference Center was discussed. Clarification was requested on the
                    fiscal relationship between the Port of Seattle's stormwater utility and the Northwest Seaport
                      Alliance. Commissioners asked  for a clear correlation between anticipated  stormwater utility
                     revenue and a stormwater infrastructure investment plan. 
                    Commissioner Felleman was present until 3:50 p.m. 
                 Economic Development Division 
                    Commissioners commented on the potential to move real estate assets out of the Aviation Division
                 as  appropriate.  Interest  in  Port  economic  development  activities  was  expressed  and
                     commissioners endorsed discussion with the construction trades about priority hiring policies. 
                 Commissioners urged a more consistent view of all division budgets in the future and asked that
                    the budget documents better convey how the Port's budget accomplishes its strategic plan. 
                     A recording of this part of the meeting has been made available online. 
                     7b.  Draft State Legislative Agenda for 2018 
                   Presentation document(s) included a Commission agenda memorandum and presentation slides. 
                     Presenter(s): Pearse Edwards, Director, Government Relations, Public Affairs; Eric ffitch, State
                 Government Relations Manager, Public Affairs; and Trent House, Political Consultant, Trent M.
                   House Government Relations. 
                     Commissioners were presented with a draft of state legislative priorities for port advocacy in 2018.
                    They requested clarifications on tourism marketing and regulatory changes necessary for the port
                      to  incentivize  low-carbon-fuel  standards  or other emission-reduction  efforts  at  port  facilities.
                     Outreach to state legislators to tour airport facilities was recommended. 
                     A recording of this part of the meeting has been made available online. 
                       8.    ADDITIONAL NEW BUSINESS  None. 
                       9.    ADJOURNMENT 
                    There was no further business, and the meeting adjourned at 5:01 p.m. 
                   Ryan Calkins 
                    Secretary 
                    Minutes approved: February 27, 2018. 


                       Minutes of October 10, 2017, submitted for review on February 21, 2018, and proposed for approval on February 27, 2018.