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Regular Meeting on Oct 24, 2017 1:00pm

Minutes for the Port Of Seattle Commission meeting, held on Oct 24, 2017 1:00pm

                                                                              P.O. Box 1209 
                                                                Seattle, Washington 98111 
                                                                   www.portseattle.org 
                                                                      206.787.3000 
                                         APPROVED MINUTES 
                              COMMISSION REGULAR MEETING OCTOBER 24, 2017 
                The Port of Seattle Commission met in a regular meeting Tuesday, October 24, 2017, in the
                      International   Auditorium   at   Seattle-Tacoma   International   Airport,   Seattle,   Washington.
                   Commissioners Albro, Bowman, Felleman, and Gregoire were present. Commissioner Creighton
                    was absent. Commissioner Albro was present until 5:00 p.m. 
                       1.    CALL TO ORDER 
                    The meeting was called to order at 12:00 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 two matters relating to litigation and legal risk, one matter relating to sale or lease of real
                       estate, litigation, and legal risk, and one matter related to labor negotiations. Following the
                   executive session, which lasted approximately 65 minutes, the public meeting reconvened at
                     1:17 p.m. Commissioner Albro led the flag salute. 
                       3.    SPECIAL ORDERS OF BUSINESS 
                      3a.  October 24, 2017, Executive Director Report. 
                Dave Soike, Interim  Executive Director, previewed several items on the day's agenda and
                    announced kick-off of the Port's community giving campaign and recent quarterly service awards. 
                     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 may remove items from the Consent Calendar for
                    separate discussion and vote in accordance with Commission bylaws.] 
                   Agenda item 4c was removed from the Unanimous Consent Calendar for separate discussion. 
                      4a.  Authorization to (1) complete design and prepare construction documents for Airport
                      Terminal Safety Enhancements and Security Improvements project and (2) advertise,
                      award, and execute construction contract(s) for only Phase I of the project for an
                         additional $6,218,000 for a total authorization of $6,288,000 (CIP #C800862). 
                   Request document(s) included a Commission agenda memorandum and presentation slides. 

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

              PORT COMMISSION MEETING MINUTES                             Page 2 of 9 
                TUESDAY, OCTOBER 24, 2017 
                     4b.  Authorization for the Executive Director to execute three indefinite delivery, indefinite
                       quantity contracts for regulated materials management services to support project,
                        operational, and safety needs of all Port Divisions and the Northwest Seaport Alliance.
                   The contracts will not exceed $500,000 each, for a total amount not to exceed
                        $1,500,000. There is no budget request associated with this authorization. Each
                         contract will have an ordering period of three years. 
                  Request document(s) included a Commission agenda memorandum. 
                    As noted above, agenda item 4c was temporarily postponed. 
                   The motion for approval of consent items 4a and 4b carried by the following vote: 
                   In favor: Albro, Bowman, Felleman, Gregoire (4) 
                   Absent for the vote: Creighton 
                     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): 
                             Samantha Kealoha, Labor Equity Program Manager, King County, regarding priority
                                  hiring policies. 
                             Karen Dove, Executive Director, Apprenticeship and Nontraditional Employment for
                               Women (ANEW), regarding priority hiring policies. 
                             Sonja Forster, Seattle District Manager, Associated General Contractors (AGC) of
                                 Washington, regarding priority hiring policies. 
                             Anita Adams, Deputy Manager, City of Seattle, regarding priority hiring policies. 
                             Ralph Ibarra, President, Diverse America Network, regarding Women and Minority
                               Business Enterprises. Mr. Ibarra submitted written materials, which are included here as
                                minutes Exhibit A and are available for public review. 
                             J.C. Harris, Des Moines resident, regarding airport noise monitoring. 
                             Joshua Berger, Governor's Maritime Lead, State of Washington, regarding the energy
                               and sustainability motion (agenda item 6b). 
                     A recording of this part of the meeting has been made available online. 
                    The Commission advanced to consideration of  
              ITEMS REMOVED FROM CONSENT 
                      4c.  Approval of the 2018-2022 Long Range Plan. 
                   Request document(s) included a Commission agenda memorandum, presentation slides, and plan
                   document. 
                     Presenter(s): Dave Caplan, Senior Director, Strategic Initiatives. 

                       Minutes of October 24, 2017, submitted for review on March 7, 2018, and proposed for approval on March 13, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 3 of 9 
                TUESDAY, OCTOBER 24, 2017 
                   Commissioners commented on the absence of a strategy to increase the number of small business
                     firms used by the Port for construction, consulting, goods, and services. Commissioners also
                commented on disaggregation of objectives related to women and minority-owned business
                    utilization and on encouraging use of veteran-owned businesses. 
                     Without objection, further consideration of agenda item 4c was laid on the table. 
                     A recording of this part of the meeting has been made available online. 
                       6.    DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
                      6a.  First Reading of Resolution No. 3736, a resolution of the Port of Seattle Commission
                         establishing a Priority Hire Policy Directive; and amending the Policy Directive related
                        to practices for construction labor for projects located on Port property adopted by
                        Resolution No. 3725. 
                   Request document(s) included a Commission agenda memorandum and draft resolution. A copy of
                     the final draft of Resolution No. 3725 will be made available upon adoption. 
                   Presenter(s): Veronica Valdez, Commission Specialist, and Marie Kurose, Workforce Development
                  Manager, Economic Development. 
                 Commissioners requested clarification on tracking priority hiring data and commented on
                    coordination with other regional agencies and the benchmarking of goals and consequences for
                    non-attainment. They discussed the Port's responsibilities for generating visibility and getting
                   workers engaged in workforce development programs. 
                    An amendment to remove the attachments on pages 12-14 of the policy directive text was adopted
                      without objection. 
                   The motion for approval of First Reading of Resolution No. 3736, as amended, carried by the
                    following vote: 
                   In favor: Albro, Bowman, Felleman, Gregoire (4) 
                   Absent for the vote: Creighton 
                     A recording of this part of the meeting has been made available online. 
                     6b.  Motion of the Port of Seattle Commission implementing recommendations of the
                        Energy and Sustainability Committee and setting strategic priorities. 
                    Request document(s) included a motion, draft framework, and allocation of resources document. 
                     Presenter(s):  Elizabeth  Leavitt,  Senior  Director,  Environment  and  Sustainability,  and  Aaron
                    Pritchard, Commission Issues and Policy Manager. 


                       Minutes of October 24, 2017, submitted for review on March 7, 2018, and proposed for approval on March 13, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 4 of 9 
                TUESDAY, OCTOBER 24, 2017 
                The deliberative process of the Energy and Sustainability Committee was summarized. An
                amendment to remove references in the motion to specific full-time-equivalent positions and to
                 renumber the sections of the motion was adopted without objection. The text of the motion, as
                    amended, reads as follows: 
                         Moved, that the Port of Seattle shall take the following actions: 
                                 1.   Develop a Port Sustainability Evaluation Framework to assist the Port in
                               meeting its greenhouse gas reduction and sustainability goals. 
                                 2.   Select up to four pilot projects, divided between the airport and maritime,
                            beginning with a solar project on Pier 69, to identify how to incorporate
                              the  following  environmental  and  societal  components  of  project
                               proposals including: 
                                         i.   Reduce greenhouse gas emissions 
                                         ii.   Increase energy resilience 
                                         iii.  Protect public health and the environment 
                                         iv.  Support local economic development 
                                         v.   Advance racial and social equity 
                                         vi.  Leverage partnerships 
                                  vii. Advance innovation 
                                 3.   Evaluate  and  recommend  methods  for  valuing  and  internalizing  the
                                external costs of carbon port-wide. 
                                 4.   Dedicate sufficient staff resources to focus on sustainability efforts to
                          meet the recently approved Century Agenda greenhouse gas emission
                             goals and to implement the Committee recommendations. 
                                 5.   Amend the Century Agenda to add Scope 2 goals. With the amendment,
                               the greenhouse gas emission reduction goals will be as follows: 
                                  Scope 1 and 2  Port Controlled and Port Indirect Emissions 
                                    15 percent below 2005 levels by 2020 
                                    50 percent below 2005 levels by 2030 
                                   Carbon Neutral by 2050 OR Carbon Negative by 2050 
                                 Scope 3  Port Influenced Emissions 
                                    50 percent below 2007 levels by 2030 
                                    80 percent below 2007 levels by 2050 
                                 6.   Work with the Northwest Seaport Alliance through the Port of Seattle's
                           Environment and Sustainability Center of Expertise to advance mutually
                               shared goals, whenever practicable. 
                                 7.   The COE is directed to present the four proposed pilot projects to the
                         Commission within 90 days of passage of the 2018 Budget, to include a
                                 proposed timeline for completion of the pilot projects. 
                                 8.   The  COE  will  meet  with  key  stakeholders  across  the  Port  including
                             Project Management Group (PMG), Engineering, Finance and Investment,
                              lease teams and other teams as necessary to implement and review the
                                    pilot projects. The pilot project results will be presented to Commission,
                               with a recommended Policy Directive. 

                       Minutes of October 24, 2017, submitted for review on March 7, 2018, and proposed for approval on March 13, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 5 of 9 
                TUESDAY, OCTOBER 24, 2017 
                                 9.   The  COE  will  report  progress  twice  yearly  on  the  Century  Agenda
                           greenhouse gas emission reduction goals and will maintain a public
                                facing environmental scorecard reflecting that progress. 
                   The motion for approval of agenda item 6b, as amended, carried by the following vote: 
                   In favor: Albro, Bowman, Felleman, Gregoire (4) 
                   Absent for the vote: Creighton 
                     A recording of this part of the meeting has been made available online. 
                      6c.  Authorization to pursue the legislative priorities as described in this memorandum
                      during the 2018 state legislative session, convening January 8, 2018, in Olympia,
                      Washington. 
                 Request document(s) included a Commission agenda memorandum and presentation slides. A
                 copy of the draft 2018 State Legislative Agenda was provided at the time of the meeting, and is
                     available for public review in its subsequently amended form. 
                     Presenter(s): Eric ffitch, State Government Relations Manager, Public Affairs, and Trent House,
                    Contract Lobbyist, Trent M. House Government Relations. 
                    Previously, the Commission received a presentation on this topic on October 10, 2017. 
                    Changes to the legislative agenda requested subsequent to the presentation on October 10, 2017,
                 were described. These included references to promoting rural economic development and rural
                 broadband deployment, advocacy for efforts to stabilize the Model Toxics Control Act account to
                  ensure availability of funds for core programs long-term, and opposition to legislation that would
                    create an imbalance of representatives between the homeports of the Northwest Seaport Alliance 
                     or that would alter either homeport's governance structure previously established by voters without
                       voter ratification. 
                   Commissioners commented on the Port's interest in rural economic development as an expression
                     of the Port's efforts to collaborate with other Washington ports to support broadly shared economic
                     opportunity. They also noted that much of King County is rural in character. 
                Amendments to the legislative agenda to stress tourism promotion as a component of rural
                 economic development and to reference the "governance" structure of the Northwest Seaport
                    Alliance homeports (the Ports of Tacoma and Seattle) were adopted without objection. 
                   The motion for approval of agenda item 6c, as amended, carried by the following vote: 
                   In favor: Albro, Bowman, Felleman, Gregoire (4) 
                   Absent for the vote: Creighton 
                     A recording of this part of the meeting has been made available online. 

                       Minutes of October 24, 2017, submitted for review on March 7, 2018, and proposed for approval on March 13, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 6 of 9 
                TUESDAY, OCTOBER 24, 2017 
                     6d.  Authorization for the Executive Director to execute appropriate contract documents for
                       the purpose of renewing the Port's Microsoft EnterpriseSoftware License Agreement
                        through December 31, 2020, at a cost not to exceed $2.7 million. 
                  Request document(s) included a Commission agenda memorandum. 
                     Presenter(s): Peter Garlock, Chief Information Officer. 
                 Commissioner Gregoire announced her intention to abstain from voting on agenda item 6d in an
                    abundance of caution due to her position as an assistant general counsel for Microsoft's digital
                      crimes unit. 
                   The motion for approval of agenda item 6d carried by the following vote: 
                   In favor: Albro, Bowman, Felleman (3) 
                   Absent for the vote: Creighton 
                   Abstaining: Gregoire 
                     A recording of this part of the meeting has been made available online. 
                      6e.  Authorization for the Executive Director to (1) execute a lease amendment for office
                    space for the Capital Development Department (CDD) and Central Procurement Office
                    (CPO) Major Works Department to move into the SeaTac Office Center (STOC) for
                       $6,829,000 and (2) Execute contracts to purchase office furniture, and design and
                            install  communications  infrastructure  to  support  business  needs  for  $2,228,000
                        (CIP #C800982). 
                   Request document(s) included a Commission agenda memorandum and draft lease. 
                     Presenter(s): Ralph Graves,  Senior Director, Capital Development; James Jennings, Senior
                 Manager, Aviation Properties; Lance Lyttle, Aviation Division Managing Director; and Dave Soike,
                     Interim Executive Director. 
                     The drivers for securing the additional work space were described, including projected staff growth
                       in the Aviation Division over the next five years. Commissioners requested more information on
                 employee growth and asked about the potential to purchase permanent office space. The
                     implications of a shorter term lease were discussed, including the impacts of required tenant
                    improvements. Commissioners asked that alternatives to the lease amendment be considered. 
                     Without objection, further consideration of agenda item 6e was laid on the table. 
                     A recording of this part of the meeting has been made available online. 


                       Minutes of October 24, 2017, submitted for review on March 7, 2018, and proposed for approval on March 13, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 7 of 9 
                TUESDAY, OCTOBER 24, 2017 
                       7.    STAFF BRIEFINGS 
                    Without objection, the Commission advanced to consideration of  
                      7e.  Port of Seattle Women and Minority Business Enterprise Policy. 
                    Presentation document(s) included a Commission agenda memorandum, presentation slides,
                    Attorney General opinion  regarding Initiative 200  and application of race-  or sex-conscious
                   measures, and Washington State Department of Transportation (WSDOT) Diversity Roadmap. 
                     Presenter(s): Nora Huey, Director, Central Procurement Office; Teresa Delicino, Director, Small
                    Business Development; Ralph Graves, Senior Director, Capital Development; and Aaron Pritchard,
                   Commission Issues and Policy Manager. 
                The Commission received a presentation on a proposed policy directive on Women and Minority
                  Business Enterprises. Commissioners asked for clarification on calculation of the percentages
                     described in the 2014 Port of Seattle disparity analysis, which focused on construction contracting.
                 There was discussion of applying an analysis of numbers of contracted firms and percentage of
                     Port spending. It was noted that there are a variety of opportunity levers available to the Port based
                     on the line of business and application of existing federal programs. 
                 Commissioners stressed the importance of providing opportunities and achieving demonstrable
                 outcomes and commented on potential disruption to contracting communities in the crafting of
                       policy direction. 
                   The elements of the proposed Women and Minority Business Enterprise policy were enumerated.
                    Commissioners opined on the timing of adoption of an initial policy and a more fully formed policy
                and opportunities for public exposure to the proposed policy. The timing for complementary
                   amendment of the Century Agenda was discussed. 
                     A recording of this part of the meeting has been made available online. 
                    Following the presentation on agenda item 7e, the Commission returned to consideration of  
                      7a.  Follow-up Discussion of Operating Division Budget Requests. 
                   Presentation document(s) included a Commission agenda memorandum, Sea-Tac Cargo Growth
                  document, Sea-Tac Tenant Street Pricing Document, Portwide Full-Time-Equivalent positions 
                    document, and Transfer of Airport Property to the Economic Development Division document. 
                    Previously, the Commission received a presentation on this topic on October 10, 2017. 
                    Responses to Commissioner questions from October 10, 2017, were presented in written form. 
                     A recording of this part of the meeting has been made available online. 


                       Minutes of October 24, 2017, submitted for review on March 7, 2018, and proposed for approval on March 13, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 8 of 9 
                TUESDAY, OCTOBER 24, 2017 
                     7b.  Briefing on the Preliminary Tax Levy and the Draft Plan of Finance 2018-2022. 
                   Presentation document(s) included a Commission agenda memorandum and presentation slides. 
                     Presenter(s): Dan Thomas, Chief Financial Officer, and Elizabeth Morrison, Director, Corporate
                    Finance. 
                    Prospective capital spending over the next five years was compared to anticipated tax levy funding
                   balances. Prioritization efforts for capital project planning were described. Commissioners asked
                  about changes in tax levy use over time and the relationship between the tax amount levied and
                    millage rates. Commissioners commented on trends for estimating levy uses and available
                    balances over time. Staff proposals for use of the tax levy between 2018 and 2022 were presented.
                 Commissioners requested clarifications on which capital projects are given priority for tax levy
                    funding based on current business arrangements in the Maritime Division's lines of business. A
                     specific list of levy uses was requested in connection with budget adoption. The Port's contribution
                    to the baggage valet program for cruise passengers was discussed. 
                     A recording of this part of the meeting has been made available online. 
              RECESSED AND RECONVENED 
                     The meeting was recessed at 4:40 p.m. and reconvened at 4:43 p.m., chaired by Commissioner Albro. 
                      7c.  Salary and Benefits Resolution, Commission Briefing. 
                   Presentation document(s) included a Commission agenda memorandum and presentation slides. 
                   Presenter(s): Tammy Woodard, Director, Human Resources  Total Rewards; and Ann McClellan,
                  Compensation Manager. 
                    Commissioners noted changes to dual-reporting relationships of key staff. Other changes to salary
                    and benefits compared to 2017 were described. 
                     A recording of this part of the meeting has been made available online. 
                 Commissioner Albro was present until 5:00 p.m., after which the meeting was chaired by Vice
                    President Courtney Gregoire. 
                     Without objection, the following agenda item  
                     7d.  Evaluating Solar Energy at the Port of Seattle. [postponed] 
                      was indefinitely postponed. 
                       8.    ADDITIONAL NEW BUSINESS  None. 


                       Minutes of October 24, 2017, submitted for review on March 7, 2018, and proposed for approval on March 13, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 9 of 9 
                TUESDAY, OCTOBER 24, 2017 
                       9.    ADJOURNMENT 
                    There was no further business, and the meeting adjourned at 5:13 p.m. 

                    Prepared:                                      Attest: 
                    Paul J. White, Commission Clerk                Ryan Calkins, Commission Secretary 
                   Minutes approved March 13, 2018. 















                       Minutes of October 24, 2017, submitted for review on March 7, 2018, and proposed for approval on March 13, 2018.