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Regular Meeting on Nov 28, 2017 1:00pm

Minutes for the Port Of Seattle Commission meeting, held on Nov 28, 2017 1:00pm

        P.O. Box 1209 
                                                                Seattle, Washington 98111 
                                                                   www.portseattle.org 
                                                                      206.787.3000 
                                         APPROVED MINUTES 
                             COMMISSION REGULAR MEETING NOVEMBER 28, 2017 
                The Port of Seattle Commission met in a regular meeting Tuesday, November 28, 2017, in the
                      International   Auditorium   at   Seattle-Tacoma   International   Airport,   Seattle,   Washington.
                   Commissioners Albro, Bowman, Creighton, Felleman, and Gregoire were present. Commissioner
                    Gregoire was present until 4:50 p.m. Commissioner Bowman was present until 5:15 p.m. 
                       1.    CALL TO ORDER 
                    The meeting was called to order at 12:30 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 two matters relating to litigation, legal risk, and sale or lease of real estate and one
                   matter relating to performance on a publicly bid contract, litigation, and legal risk. Following the
                   executive session, which lasted about 85 minutes, the public meeting reconvened at 2:02 p.m. 
                     Commissioner Albro led the flag salute. 
                       3.    SPECIAL ORDERS OF BUSINESS 
                      3a.  November 28, 2017, Executive Director Report. 
                Dave Soike, Interim Executive Director, commented on the process for development of the 2018
                    budget and announced the reopening of the Airport's meditation room on the mezzanine level. 
             ANNOUNCEMENT 
                 Commissioners commented on the progress of negotiations for a new signatory lease and
                    operating agreement (SLOA, or airline lease) at the airport, summarizing their positions on
                     negotiation principles and their commitment to pursue provision and use of sustainable aviation
                      fuels at Seattle-Tacoma International Airport. 
                       4.    UNANIMOUS CONSENT CALENDAR 
                    [Clerk's Note: Items on the Unanimous Consent Calendar are not individually discussed, although
                  commissioners may remove items from the consent calendar for separate discussion and vote in
                   accordance with commission bylaws.] 
                   Agenda item 4d was removed from the Unanimous Consent Calendar for separate discussion. 

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

              PORT COMMISSION MEETING MINUTES                            Page 2 of 10 
               TUESDAY, NOVEMBER 28, 2017 
                      4a.  Authorization for the Executive Director to execute a contract with King County Metro
                        of up to $375,000 to purchase One Regional Card for All (ORCA) cards for Port
                      employees as noted in the Port's approved Commute Trip Reduction Program. 
                  Request document(s) included an agenda memorandum. 
                     4b.  Approval for the Executive Director to increase the South Satellite Heating, Ventilation,
                   and Air Conditioning Replacement/Upgrade Project authorization by $1,425,000 for a
                        total estimated project cost of $13,925,000 (CIP #C800798). 
                  Request document(s) included an agenda memorandum. 
                      4c.  Authorization for the Executive Director to (1) advertise and execute major public
                        works contracts to construct a new airline baggage service office and enlarge the north
                    employee screening room  at Seattle-Tacoma International  Airport; (2) procure
                        additional security equipment, and (3) use Port crews to install infrastructure for the
                        new equipment. This authorization is for $1,550,000 of a total estimated project cost of
                        $2,950,000 (CIP #C800880). 
                  Request document(s) included an agenda memorandum. 
                    As noted above, agenda item 4d was temporarily postponed. 
                   The motion for approval of consent items 4a, 4b, and 4c carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
                       5.    PUBLIC TESTIMONY 
                     Public comment was received from the following individual(s): 
                             Anna Pavlik, Labor Equity Program Manager, City of Seattle, regarding priority hire. 
                             Samantha Kealoha, Labor Equity Program Manager, King County, regarding priority hire. 
                             Kris Larson, Priority Hire Program Manager, Urban League, regarding priority hire. 
                             Monty Anderson, Manager, Seattle Building Trades, regarding priority hire. 
                             Ralph Ibarra, President, Diverse America Network, regarding priority hire. Mr. Ibarra
                               submitted written materials, which are attached as minutes Exhibit A. 
                             Earl Gipson, SeaTac resident, regarding the port's interlocal agreement with the City of
                           SeaTac. 
                             JC Harris, Des Moines resident, regarding air traffic noise. 
                             Andrew Harrison, Alaska Airlines, regarding the airline lease. 
                             Matthew Shelby, Chair, Airline Airport Affairs Committee, regarding the airline lease. Mr.
                               Shelby submitted written materials, which are attached as minutes Exhibit B. 
                             Mike Pearson, Vice President, Delta Air lines, regarding the airline lease. 
                             Eddie Rye, Jr., Civil Rights Coalition, regarding Airport Concessions Disadvantaged
                           Business Enterprises. Mr. Rye submitted written materials, which are attached as
                               minutes Exhibit C. 

                       Minutes of November 28, 2018, submitted for review on May 4, 2018, and proposed for approval on May 22, 2018.

              PORT COMMISSION MEETING MINUTES                            Page 3 of 10 
               TUESDAY, NOVEMBER 28, 2017 
                             Hayward Evans, Afro-PAC, regarding Airport Concessions Disadvantaged Business
                                Enterprises. 
                             Bob  Armstead,  National  Association  of  Minority  Contractors,  regarding  Airport
                             Concessions Disadvantaged Business Enterprises. 
                             Henry Yates, regarding Airport Concessions Disadvantaged Business Enterprises. 
                    Without objection, the Commission advanced to consideration of  
                       6.    DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
                    and proceeded to consideration of  
                      6c.  Second Reading and Final Passage of Resolution No. 3736, as amended: 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 an agenda memorandum, text of the resolution as of first reading,
                     redline version, and amended draft resolution. A copy of the final draft of Resolution No. 3736 will
                    be made available upon adoption. 
                    Presenter(s): Veronica Valdez, Commission Specialist. 
                     Previously, First Reading of Resolution No. 3725 was approved on October 24, 2018, and
                    amendments to the resolution were adopted. 
                  Commissioner Albro read a November 15, 2017, letter from the Port of Seattle Commission
                  addressed to King County Executive Dow Constantine on the subject of building an opportunity
                      pipeline for disadvantaged communities through an interlocal agreement. A copy of the letter is
                     attached as minutes Exhibit D. 
                     As presented, the purpose of the policy directive is to encourage economic growth and job creation in
                    geographic areas of King County that demonstrate high poverty levels, concentrated unemployment,
                     and gaps in educational attainment. Key elements of the policy include the following: 
                             Applicability to port construction projects with construction labor costs of $5 million or more; 
                             Use of bid documents to target a required percentage of labor hours by workers residing
                               in economically distressed areas; 
                             Hiring and dispatch of priority workers before non-priority workers; 
                             Project-specific requirements aimed at achieving at least 20 percent of labor hours
                               performed by priority workers annually; 
                             Hiring and dispatch of priority workers living in King County before other priority workers; 
                             Provision of job coordinators to facilitate referral, training, and employment of priority
                              workers; and 
                             Establishment of benchmarks and measurement. 


                       Minutes of November 28, 2018, submitted for review on May 4, 2018, and proposed for approval on May 22, 2018.

              PORT COMMISSION MEETING MINUTES                            Page 4 of 10 
               TUESDAY, NOVEMBER 28, 2017 
              AMENDMENTS 
                Amendments 1-17 detailed in the agenda memo were characterized as housekeeping changes.
                    These amendments have the following effects: 
                             Improved phrasing; 
                             Insertion of a recital (whereas clause) relating to conducting port business ethically; 
                             Emphasis on the importance of "Career Connected Learning"; 
                             Provision for cataloguing of the policy directive; 
                             Assignment of risk-mitigation activities to the "designee"; 
                             Provision of an allowance for contractors/dispatchers to consider availability of priority
                               workers in the workforce; 
                             Utilization tracking of small and women- and minority-owned business enterprises; 
                             Generalized reference to annual review of fiscal impacts; and 
                             Incorporation of the findings of fact into the body of the policy directive. 
                   The motion to adopt Amendments 1-17 carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
                Amendments 42-45 detailed in the agenda memo were summarized. These amendments would
                      incorporate efforts in pursuit of the policy directive into the port's long-range plan and provide for
                      related reporting. 
                   The motion to adopt Amendments 42-45 carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
                Amendments 18-41 detailed in the agenda memo and sponsored by Commissioner Albro were
                     characterized as broadening the scope of the priority hire initiative beyond construction projects to
                   apply to leases, concession agreements, and procurement contracts. Amendment 36 also provided 
                       for efforts to lower entry barriers for recruits from priority hire zip codes. 
                 Commissioners commented on this set of amendments, noting support for the sentiment of the
                amendments but expressing concern that lack of enabling support structures outside the
                      construction sector might harm early priority-hire efforts. 
                   The motion to adopt Amendments 18-41 failed to pass; the vote was: 
                    In favor: Albro, Creighton (2) 
                  Opposed: Bowman, Gregoire, Felleman (3) 
                   Commissioner Gregoire offered the following Amendment 46 as an alternative to Amendments 18-
                      41: In Section 5, Policy, strike subsection (I) and insert the following in lieu thereof: 
                            (I)   The Port shall review and recommend how the intent of priority hire can be implemented
                             throughout the Port beyond the covered projects, including future leases, concession
                             agreements, and procurement contracts by September 1, 2018. 

                       Minutes of November 28, 2018, submitted for review on May 4, 2018, and proposed for approval on May 22, 2018.

              PORT COMMISSION MEETING MINUTES                            Page 5 of 10 
               TUESDAY, NOVEMBER 28, 2017 
                   The motion to adopt Amendment 46 carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
                     The question recurred on adoption of the resolution, as further amended. 
               The motion for adoption of Resolution No. 3736, as further amended, carried by the
                    following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
              ITEMS REMOVED FROM CONSENT 
                     4d.  Authorization for the Executive Director to: (1) authorize $1,600,000 of project spending
                         via a tenant reimbursement agreement (TRA), see Attachment 1, between the Port and
                       Ivar's, Inc. for the design and construction of a shared cooking facility and venting
                    system in support of temporary food carts offering hot food in the Central Terminal at
                        Seattle-Tacoma International Airport; (2) execute a lease and TRA with Ivar's for this
                       purpose under the Airport's AV-2Policy, and (3) authorize an additional $400,000 of
                         project spending to support this tenant project. This request seeks a single authorization
                       to approve the TRA and complete design and construction. The total estimated cost for
                         this project is $2,000,000 (CIP #C800154). [subsequently laid on the table] 
                   Request document(s) included an agenda memorandum, presentation slides, draft reimbursement
                    agreement, and draft lease agreement. 
                     Presenter(s): Jim Schone, Director, Aviation Commercial Management, Dawn Hunter, Senior
                    Manager, Airport Dining and Retail, and Sean Anderson, Capital Program Leader, Aviation Project
                 Management. 
                      Commissioners asked for clarification on the long-term use of the facility, including potential to train
                   food service workers. Commissioners asked that information regarding the long-term use of the
                       facility be clearer in the request documents. Commissioners expressed concerns regarding the
                     short lease term of the tenant in question and asked for more information on the urgency justifying
                    use of a tenant reimbursement agreement. 
                     Subsequently, agenda item 4d was laid on the table without objection. 
                       6.    DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
                      6a.  Second Reading and Final Passage of Resolution No. 3738, as amended: A resolution
                        of the Port Commission of the Port of Seattle adopting the final budget of the Port of
                        Seattle for the year 2018; making, determining, and deciding the amount of taxes to be
                        levied upon the current assessment roll; providing payment of bond redemptions and
                          interest, cost of future capital improvements and acquisitions, and for such general
                    purposes allowed by law which the Port deems necessary; and directing the King
                        County Council as to the specific sums to be levied on all of the assessed property of
                          the Port of Seattle District in the Year 2018. 

                       Minutes of November 28, 2018, submitted for review on May 4, 2018, and proposed for approval on May 22, 2018.

              PORT COMMISSION MEETING MINUTES                            Page 6 of 10 
               TUESDAY, NOVEMBER 28, 2017 
                   Request document(s) included an agenda memorandum, presentation slides, and draft resolution. 
                     A copy of the final draft of Resolution No. 3738 will be made available upon adoption. 
                    Presenter(s): Dan Thomas, Chief Financial Officer, and Michael Tong, Assistant Finance Director - 
                    Budget. 
                     Previously, First Reading of Resolution No. 3738 was approved on November 14, 2017, and
                  amendments were adopted. 
                   Commissioners commented on the amendment process for the budget on First Reading and asked
                       for improvements next year. There were questions regarding budget status for priority projects
                      arising from an airport accessibility study. With the Special Olympics coming to Seattle in 2018,
                     commissioners expressed interest in a briefing on airport accessibility. Also noted was a study on
                      airport ground transportation. 
                   The motion for adoption of Resolution No. 3738, as amended, carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
                     6b.  Second Reading and Final Passage of Resolution No. 3739:  A resolution of the Port
                   Commission of the Port of Seattle establishing jobs, pay grades, pay ranges, and pay
                       practices for port employees not represented by a labor union; authorizing legally
                       required benefits, other benefits for port employees not represented by a labor union
                       including retirement, paid leave, healthcare, life insurance and disability benefits,
                         benefits for Port of Seattle retirees, and benefits for Port of Seattle commissioners; and
                       authorizing this resolution to be effective on January 1, 2018, and repealing all prior
                       resolutions dealing with the same subject, including Resolution No. 3727 as amended
                        by Resolution No. 3734. 
                 Request document(s) included an agenda memorandum, draft resolution, redline resolution, and
                     salary ranges table. A copy of the final draft of Resolution No. 3739 will be made available upon
                     adoption. 
                    Presenter(s): Jeniann Kaelin, Total Rewards Consultant, Human Resources. 
                    Previously, First Reading of Resolution No. 3738 was approved on November 14, 2017. 
                    The content of the resolution was summarized. 
              AMENDMENT 
                    Commissioner Gregoire offered the following amendment: 
                           In Section II(E)(8) before "be addressed in a separate resolution" delete "will" and insert in its
                       place "may" so that the sentence reads "The Incentive Pay Plan may be addressed in a
                           separate resolution." 


                       Minutes of November 28, 2018, submitted for review on May 4, 2018, and proposed for approval on May 22, 2018.

              PORT COMMISSION MEETING MINUTES                            Page 7 of 10 
               TUESDAY, NOVEMBER 28, 2017 
                   The motion to adopt the amendment carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
                    The question recurred on adoption of the resolution, as amended. 
                   The motion for adoption of Resolution No. 3739, as amended, carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
                    Agenda item 6c was considered previously, and the Commission advanced to consideration of  
                     6d.  First Reading of Resolution No. 3741: A resolution of the Port Commission of the Port
                        of Seattle authorizing the Executive Director to execute an interlocal agreement with
                       the City of SeaTac to establish a mutual and cooperative system for exercising their
                       respective jurisdictional authority regarding land use, surface water management, 
                       interagency cooperation, economic development, and public safety. 
                 Request document(s) included an agenda memorandum, draft resolution, and draft agreement. A
                     copy of the final draft of Resolution No. 3741 will be made available upon adoption. 
                     Presenter(s): Lance Lyttle, Managing Director, Aviation, and Clare Gallagher, Director, Capital
                      Project Delivery, Public Affairs. 
                     Previously, a presentation on the proposed interlocal agreement was provided on November 14, 2017. 
                   Staff summarized the key terms of the interlocal agreement and commissioners commented on the
                     benefits of constructive dialog with the City of SeaTac and their appreciation of the efforts of port
                       and city staff. 
                    Commissioner Albro commented on Section 7.6.1 of the agreement, which provides $1.4 million to
                    the city for community relief related to public safety, including enforcement of traffic and parking
                    regulations. Ms. Gallagher acknowledged that use of airport funds in the manner described would
                be considered revenue diversion by the Federal Aviation Administration; therefore, funding would
                 have to come from a non-airport source. Mr. Albro concluded funding would come from the tax
                      levy. He indicated his intent to vote against the agreement on this basis because the City of
                    SeaTac already benefits in a unique way from taxes on parking, concessions, and construction at
                    the airport. He also restated his position that the FAA should provide greater flexibility for airport
                    funding of economic development efforts in airport communities. 
                 Commissioners noted that there was an attempt to ensure that mitigation for parking and public
                     safety  impacts  would  not  be  duplicated  by  the  relief  fund  and  future  National  and  State
                   Environmental Policy Act (NEPA and SEPA) mitigation measures. It was also noted that a new
                    section of the agreement calls for joint discussions between the airport and the city on economic
                    opportunity and workforce development. 


                       Minutes of November 28, 2018, submitted for review on May 4, 2018, and proposed for approval on May 22, 2018.

              PORT COMMISSION MEETING MINUTES                            Page 8 of 10 
               TUESDAY, NOVEMBER 28, 2017 
                   The motion for First Reading of Resolution No. 3741 carried by the following vote: 
                   In favor: Bowman, Creighton, Felleman, Gregoire (4) 
                   Opposed: Albro (1) 
                    Commissioner Gregoire was present until 4:50 p.m. 
                      6e.  Authorization for the Executive Director to execute a consulting contract for Airport
                      Dining and Retail consulting services for up to five years and a total amount not to
                        exceed $1,000,000. 
                  Request document(s) included an agenda memorandum. 
                     Presenter(s): Dawn Hunter, Senior Manager, Airport Dining and Retail, and Nora Huey, Director,
                    Central Procurement Office. 
                  Commissioners commented on the proper role of a consultant for the Airport Dining and Retail
                     program and the extent of the port's responsibility for proposal analysis. There was discussion of the
                    value of the current consulting firm and whether adequate commission direction has been provided
                    on the scoring of solicitations in the ADR program. Commissioners commented on whether the scope
                     of the contract is sufficiently transparent in the action as requested and whether agenda materials on
                     lease awards include enough detail of the bid process and related outreach efforts. 
                   The motion for approval of agenda item 6e carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman (4) 
                   Absent for the vote: Gregoire 
                   Commissioner Bowman was present until 5:15 p.m. 
                       6f.   Authorization for the Executive Director to execute an interlocal agreement with the
                    Washington Department of Transportation to complete a statewide disparity study on
                       Federal-Aviation-Administration-funded projects. The Port would put $90,000 into this
                           effort and also complete additional disparity studies to cover other contracts and
                        enterprises across the agency. 
                   Request document(s) included an agenda memorandum, presentation slides, and draft agreement. 
                     Presenter(s): Mian Rice, Small Business Program Policy Manager, and Jeffrey Brown, Director,
                    Aviation Capital Programs. 
                The relationship of the disparity study to establishment of race-conscious goals for contracting in
                    the disadvantaged business enterprise (DBE) program was explained. The role of the port's Office
                      of Social Responsibility was examined and the method for determining the $90,000 contribution
                    was discussed. 

                       Minutes of November 28, 2018, submitted for review on May 4, 2018, and proposed for approval on May 22, 2018.

              PORT COMMISSION MEETING MINUTES                            Page 9 of 10 
               TUESDAY, NOVEMBER 28, 2017 
                    The motion for approval of agenda item 6f carried by the following vote: 
                    In favor: Albro, Creighton, Felleman (3) 
                  Absent for the vote: Gregoire, Bowman 
              RECESSED AND RECONVENED 
                     The meeting was recessed at 5:29 p.m. and reconvened at 5:32 p.m., chaired by Commissioner Albro. 
                       7.    STAFF BRIEFINGS 
                    Without objection, the Commission advanced to consideration of  
                     7b.  Port of Seattle Women and Minority Business Enterprise Policy Briefing. 
                    Presentation  document(s)  included an  agenda  memorandum,  presentation  slides,  and  draft
                     resolution. A copy of the final draft of Resolution No. 3737 will be made available upon adoption. 
                     Presenter(s): Aaron Pritchard, Commission Issues and Policy Manager; Teresa Delicino, Small
                    Business Development Director; and Nora Huey, Director, Central Procurement Office. 
                The objectives and key components of the proposed policy directive were described. In order to
                    successfully implement the policy, a phased approach is recommended in which past policy
                   direction on small businesses and women- and minority-owned businesses would remain effective
                    as needed until September 1, 2018. 
                 Commissioners commented on goals for contracting with the number of firms as well as
                  percentage of spending with firms, on measuring the number of employees affected, and on
                    potential revision of Century Agenda goals for alignment with the new effort. There was discussion
                     on the relationship between the businesses targeted by the policy directive and organized labor. 
                    The Commission returned to consideration of  
                      7a.  Review of Proposed 2018 Federal Legislative Agenda. 
                   Presentation document(s) included an agenda memorandum, presentation slides, 2017 Maritime
                    Federal Legislative Agenda, and 2017 Aviation Federal Legislative Agenda. 
                    Presenter(s): Pearse Edwards, Director, Government Relations, Public Affairs, and Eric Schinfeld,
                    Senior Manager, Federal & International Government Relations. 
                   Commissioners and staff discussed proposed federal legislative priorities for the Port of Seattle in
                  2018. Notable were several priorities related to immigration, staffing of Customs and Border
                    Protection and Transportation Security Administration personnel, sustainable aviation fuels, and
              FAA funding for various community issues. Priorities related to fishing fleet modernization,
                    operation and maintenance of the Chittenden locks in Ballard, international trade, and the
                       possibility of privatization of air traffic control activity were also noted. 

                       Minutes of November 28, 2018, submitted for review on May 4, 2018, and proposed for approval on May 22, 2018.

              PORT COMMISSION MEETING MINUTES                           Page 10 of 10 
               TUESDAY, NOVEMBER 28, 2017 
                 Commissioners commented on collaboration with airport communities when engaging with the
                    port's congressional delegation and whether the Port Commission has a position on privatization of
                      air traffic control. There was discussion of opposition to mining activity or other resource extraction
                    operations in Alaska's Bristol Bay and the Arctic National Wildlife Refuge relative to impacts on
                    North Pacific fisheries. Commissioners commented on FAA consideration of whether to continue to
                       rely on the day-night average sound level (DNL) as the operative measurement for determining
                      aircraft noise impacts. 
                       8.    ADDITIONAL NEW BUSINESS  None. 
                       9.    ADJOURNMENT 
                    There was no further business, and the meeting adjourned at 6:26 p.m. 

                    Prepared:                                      Attest: 
                    Paul J. White, Commission Clerk                Ryan Calkins, Commission Secretary 
                   Minutes approved: May 22, 2018. 











                       Minutes of November 28, 2018, submitted for review on May 4, 2018, and proposed for approval on May 22, 2018.