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Special Meeting on Dec 19, 2017 1:00pm

Minutes for the Port Of Seattle Commission meeting, held on Dec 19, 2017 1:00pm

                                                                              P.O. Box 1209 
                                                                Seattle, Washington 98111 
                                                                   www.portseattle.org 
                                                                      206.787.3000 
                                         APPROVED MINUTES 
                               COMMISSION SPECIAL MEETING DECEMBER 19, 2017 
                    The Port of Seattle Commission met in a special meeting Tuesday, December 19, 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 12:02 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 one matter relating to sale or lease of real estate, litigation, and legal risk and one matter
                     related to performance of public employee(s). Following the executive session, which lasted
                    approximately 45 minutes, the public meeting reconvened at 1:20 p.m. Commissioner Albro led the
                       flag salute. 
                       3.    SPECIAL ORDERS OF BUSINESS 
                      3a.  Recognition of Commissioners Creighton and Albro. 
                 Commissioners commented on the service of Commissioners Creighton and Albro, which
                   concludes at the end of 2017, and presented them each with gifts. Commissioners Creighton and
                    Albro made brief remarks. 
                     3b.  Motion appointing Stephen P. Metruck as Port of Seattle Executive Director. 
                    No request documents were provided in advance of the meeting, but the adopted version of the full
                       text of the motion is attached as minutes Exhibit A. An executed copy of the executive director's
                    employment agreement is attached as minutes Exhibit B. 
                    Commissioners introduced Stephen P. Metruck and introduced the following motion to appoint him
                      as the Port of Seattle's Executive Director: 
                            It is hereby moved by the Port Commission of the Port of Seattle that Stephen P.
                       Metruck be appointed as the Port of Seattle Executive Director. Commission President
                          Elect, Courtney Gregoire, is authorized to sign an employment agreement of up to
                       three years with Mr. Metruck. The employment agreement includes an annual base
                        salary of $350,000, provisions for performance review and pay increases and a

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

              PORT COMMISSION MEETING MINUTES                            Page 2 of 10 
                TUESDAY, DECEMBER 19, 2017 
                      standard benefits package available to Port employees. A copy of the employment
                        agreement is included as Attachment A to this motion. 
                   Commissioners commented on the selection process, the range of candidates considered, and the
                   qualities wanted for a new executive director. They noted Mr. Metruck's past experience as a
                   retired Rear Admiral with the U.S. Coast Guard serving as Commander of Sector Puget Sound and
                    as the Coast Guard's Chief Financial Officer, among other assignments. Mr. Metruck offered brief
                  remarks of appreciation, and the following individuals commented on his selection as Port of
                     Seattle Executive Director: 
                             John W. Lockwood, Rear Admiral, U.S. Coast Guard, retired, and President, Seattle
                              Marine Business Coalition 
                             Mike Moore, Vice President, Pacific Merchant Shipping Association 
                             Regina Glenn, President and CEO, Pacific Communications 
                   The motion for approval of agenda item 3b carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
              RECESSED AND RECONVENED 
                     The meeting was recessed at 1:53 p.m. and reconvened at 2:30 p.m., chaired by Commissioner Albro. 
                       4.    UNANIMOUS CONSENT CALENDAR 
                    [Clerk's Note: Items on the Unanimous Consent Calendar arenot individually discussed, although
                    commissioners may remove items from the Consent Calendar for separate discussion and vote.] 
                      4a.  Revised Energy and Sustainability motion of the Port of Seattle Commission. 
                 Request  document(s)  included  a  draft  motion,  redline,  evaluation  framework,  resource
                     assessment, and resource allocation. The adopted version of the full text of the motion is attached
                 as minutes Exhibit C. The text of the Century Agenda Strategies and Objectives, as amended by
                    this and other motions of December 19, is attached as minutes Exhibit D. 
                     The text of the motion 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
                           39 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 test and validate the framework and determine
                   how to incorporate the following environmental and societal components into the
                       framework to be used to more fully inform the Commission of project proposals
                            including: 
                            a. Reduce greenhouse gas emissions 
                               b. Increase energy resilience 
                              c. Protect public health and the environment 

                       Minutes of December 19, 2017, submitted for review on June 5, 2018, and proposed for approval on June 12, 2018.

              PORT COMMISSION MEETING MINUTES                            Page 3 of 10 
                TUESDAY, DECEMBER 19, 2017 
                            d. Support local economic development 
                               e. Advance racial and social equity 
                                   f.  Leverage partnerships 
                             g. Advance innovation 
                        3. Evaluate and recommend methods for valuing and internalizing the external costs of
                           carbon port-wide. 
                       4. Adequately resource sustainability efforts to meet the recently amended Century
                     Agenda greenhouse gas emission goals and to implement the Energy and
                         Sustainability 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: 
                           a. Scope 1 emissions, which are direct greenhouse gas emissions from Port
                                 owned or controlled sources, shall be: 
                                          i.  15 percent below 2005 levels by 2020. This advances the initial Century
                                      Agenda goal by 17 years. 
                                          ii. 50 percent below 2005 levels by 2030. This advances the initial Century
                                      Agenda goal by 7 years. 
                                   iii. Carbon Neutral by 2050 OR Carbon Negative by 2050. This creates a new
                                        long-term stretch goal. 
                           b. Scope 2 emissions, which are indirect greenhouse gas emissions from
                                consumption of purchased electricity, heat, or steam. The new Port-wide goals
                                   for Scope 2 shall be: 
                                          i.  15 percent below 2005 levels by 2020. 
                                     ii. 50 percent below 2005 levels by 2030. 
                                   iii. Carbon Neutral by 2050 OR Carbon Negative by 2050. 
                            c. Scope 3 emissions, which are greenhouse gas emissions over which the Port
                           has influence, not direct control. The new Port-wide goals for Scope 3 shall
                                      be: 
                                          i.  50 percent below 2007 levels by 2030. 
                                     ii. 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 (COE) 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 the Project
                          Management Group (PMG), Engineering, Facilities and Infrastructure, 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. 
                        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. 


                       Minutes of December 19, 2017, submitted for review on June 5, 2018, and proposed for approval on June 12, 2018.

              PORT COMMISSION MEETING MINUTES                            Page 4 of 10 
                TUESDAY, DECEMBER 19, 2017 
                   The motion for approval of agenda item 4a carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
                       5.    PUBLIC TESTIMONY 
                     Additional public comment (see also agenda item 3b above) was received from the following
                       individual(s): 
                             Ralph Ibarra, President, Diverse America Network, regarding women- and minorityowned
                              business enterprises. 
                             Dan Seydel, CEO, Entrepreneurial Institute of Washington, regarding women- and
                              minority-owned business enterprises. 
                             Christina Greaves, Uber, regarding airport ground transportation. 
                             Cindi Laws, Director/Lobbyist, Wheelchair Accessible Taxi Association, regarding airport
                               ground transportation. 
                             Henry Yates, Yates Consulting, regarding diversity in contracting and the service of
                             Commissioners Albro and Creighton. 
             ANNOUNCEMENTS 
                 Commissioner Albro commented on the derailment of an AMTRAK train bound from Seattle to
                   Portland and expressed the Commission's sympathies to the victims. Interim Executive Director
                  Soike noted the participation of port resources at the site of the derailment near DuPont,
                   Washington. 
                   Mr. Soike announced the death of actively serving Port of Seattle Fire Captain Charles Vona,
                     following an eight-year struggle with a brain tumor, and extended condolences to Captain Vona's
                       family. 
                       6.    DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
                      6a.  Second Reading and Final Passage of Resolution No. 3742: A resolution of the Port
                   Commission of the Port of Seattle adopting bylaws governing the organization and
                       transaction of business of the Port of Seattle Commission and repealing Resolutions
                        No. 3611, 3672, 3673, 3689, 3690, 3733, and all other resolutions dealing with the same
                         subject matter. 
                 Request document(s) included a Commission agenda memorandum, draft resolution, appendix,
                and amendments. A copy of the final draft of Resolution No. 3742 will be made available upon
                     adoption. 
                    Presenter(s): Paul J. White, Commission Clerk. 
                   Previously, the Commission approved First Reading of Resolution No. 3742 on December 5, 2017,
                    and considered a presentation on potential amendments to the resolution on December 12, 2017. 


                       Minutes of December 19, 2017, submitted for review on June 5, 2018, and proposed for approval on June 12, 2018.

              PORT COMMISSION MEETING MINUTES                            Page 5 of 10 
                TUESDAY, DECEMBER 19, 2017 
                   Mr. White summarized the key principles represented by the changes incorporated into the new
                    proposed commission bylaws and thanked commissioners for their participation in considering and
                     providing refinements to the proposed text in a short time frame. 
              AMENDMENTS 
                    Commissioners considered several amendments to the text as originally proposed, as follows: 
                   Amendments 1, 2, 3, 4, 5, 6, 9, 10, 11, 13, and 14 were summarized. These amendments have the
                       following effects: 
                        Phrasing improvements and clarifications; 
                        Creation of the requirement that policy-development matters be referred to committee and
                             provision of a way  to discharge matters from committee quickly for action by the
                             commission in public session; 
                         Articulation of processes related to 24-hour, special meeting notices; 
                         Creation of a 24-hour filing deadline for amendments during public session and application
                             of a two-thirds vote for passage of late-filed amendments; 
                         Restoration of a requirement to record executive sessions for review by outside counsel; 
                   Broadening the latitude of the president to speak on behalf of the commission on topics
                             consistent with policies, statements, and actions of the commission; 
                         Refinements to the commission's object statement; 
                          Inclusion of reference to the commission's responsibility to uphold the port's statementof
                             values and port code of ethics and commission code of ethics; 
                         Clarification of the commission's collective role in recessing or adjourning a disrupted
                           meeting; and 
                         Simplification of the required contents of committee charters. 
                   The motion for adoption of Amendments 1-6, 9-11, 13, and 14 carried by the following vote: 
                   In favor: Albro, Bowman, Felleman, Gregoire (4) 
                   Absent for the vote: Creighton 
                Amendment 17 was summarized as clarifying that restrictions against insulting and inflammatory
                     remarks apply to all people speaking during meetings, including staff, commissioners, and the public. 
                   The motion for adoption of Amendment 17 carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
                   Amendment 7 was summarized as emphasizing the need for the commission president to make a
                    reasonable effort to consult with another commissioner prior to making public statements on behalf
                      of the commission. Commissioners commented on the need to be responsive to news media
                   during emergent situations. They also discussed the importance of not applying the amendment's
                    provisions in a way that might compromise compliance with the Open Public Meetings Act (Chapter
                   42.30 RCW). 

                       Minutes of December 19, 2017, submitted for review on June 5, 2018, and proposed for approval on June 12, 2018.

              PORT COMMISSION MEETING MINUTES                            Page 6 of 10 
                TUESDAY, DECEMBER 19, 2017 
                   The motion for adoption of Amendment 7 carried by the following vote: 
                   In favor: Bowman, Creighton, Felleman, Gregoire (4) 
                   Opposed: Albro (1) 
               Amendment 8 was summarized as tying the commission's role of review and oversight of the
                     executive director and dual-reporting officers to the duties of specific commission officers or to the
                 commission  as  a  whole.  Commissioners  were  reminded  that  actions  related  to  specific
                  performance recommendations would have to comply with rules governing executive sessions
                  under Chapter 42.30 RCW. 
                   The motion for adoption of Amendment 8 carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
                    Amendment 12 was described as an effort to clarify that individual commissioner comments are not
                      direction of the commission as a whole, particularly when commissioners offer opinions on staff
                    presentations where a quorum of the commission is not present. 
                   The motion for adoption of Amendment 12 carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
                 Amendment 15 was described as an attempt to make the process for determining committee and
                   outside board and commission assignments less prescriptive. Commissioner Bowman introduced a
                     substitute version of Amendment 15, which was distributed at the meeting and included a role for
                    the commission president to step in when there is not consensus among commissioners on a
                     particular appointment. 
                   The motion for adoption of Substitute Amendment 15 carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
               Amendment 16 was summarized as a provision for all commissioners to serve on the Audit
                      Committee prior to completing their fourth year in office. 
                   The motion for adoption of Amendment 16 carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
                    The question recurred on the adoption of the resolution, as amended. 
               The motion for approval of Second Reading and Final Passage of Resolution No. 3742, as
                   amended, carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 


                       Minutes of December 19, 2017, submitted for review on June 5, 2018, and proposed for approval on June 12, 2018.

              PORT COMMISSION MEETING MINUTES                            Page 7 of 10 
                TUESDAY, DECEMBER 19, 2017 
                     6b.  Motion of the Port of Seattle Commission to amend the Century Agenda small business
                       goals to include Women and Minority Business Enterprise. 
                    Request document(s) included a draft motion. The adopted version of the full text of the motion is
                   attached as minutes Exhibit E. The text of the Century Agenda Strategies and Objectives, as
                    amended by this and other motions of December 19, is attached as minutes Exhibit D. 
                    Presenter(s): Aaron Pritchard, Commission Issues and Policy Manager. 
                     The text of the motion reads as follows: 
                   The Port finds that minority and women businesses are under-represented and have
                    been under-utilized on Port contracts. The purpose of this motion is to amend the
                     Century Agenda to reflect new goals that will increase participation by minority and
                 women owned and controlled businesses in Port contracting for public works,
                        consulting services, supplies, material, equipment, and other services. 
                       Century Agenda, Strategy 3 shall be amended as follows: 
                       Insert "women and minority business enterprise growth" to read: 
                       "Use the Port's influence as an institution to promote women and minority business
                       enterprise growth, small business growth, and workforce development." 
                         Insert new objective 10: 
                         10. Triple the number of WMBE firms that contract with the Port and increase to 15%
                        the percentage of dollars spent on WMBE contracts within five years, 2018 - 2023. 
                         11. Increase the proportion of funds spent by the Port with qualified small business
                       firms on construction, consulting, goods and services to 40 percent of the eligible
                         dollars spent. 
                         12. Increase workforce training, job and business opportunities for local communities
                          in maritime, trade, travel and logistics. 
                       Renumber subsequent objectives as appropriate. 
                   The motion for approval of agenda item 6b carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
                      6c.  Second Reading and Final Passage of Resolution No. 3737, a Resolution of the Port of
                        Seattle Commission to establish a Diversity in Contracting Policy Directive to increase
                 women and minority business opportunities and to repeal Resolutions No. 3506 and
                         No. 3618. [subsequently laid on the table] 
                   Request document(s) included a Commission agenda memorandum and draft resolution. A copy of
                     the final draft of Resolution No. 3737 will be made available upon adoption. 
                   Previously, the Commission approved First Reading of Resolution No. 3737 on December 5, 2017,
                    and considered a presentation on potential amendments to the resolution on December 12, 2017. 

                       Minutes of December 19, 2017, submitted for review on June 5, 2018, and proposed for approval on June 12, 2018.

              PORT COMMISSION MEETING MINUTES                            Page 8 of 10 
                TUESDAY, DECEMBER 19, 2017 

                 Commissioners commented with appreciation on the work that has gone into crafting the policy
                     directive and expressed a desire to make additional refinements before adoption. 
                     Without objection, further consideration of agenda item 6c was laid on the table. 
                     6d.  Motion of the Port of Seattle Commission to develop a Port of Seattle Sustainable
                         Aviation Fuels strategy. 
                    No request documents were provided prior to the meeting, but a draft of the motion was presented
                     at the time of the meeting and the final text of the motion will be made available upon adoption. 
                    Presenter(s): Veronica Valdez, Commission Specialist, and Stephanie Meyn, Senior Environmental
                   Program Manager, Aviation Environmental. 
                   The provisions of the motion were summarized. Commissioners commented on the opportunity for
                 use of alternative aviation fuels to significantly reduce greenhouse gas emissions and particulate
                    matter concentrations. They noted the need to send a strong market signal and opined on the need
                     for state tax credits related to sustainable fuels and market implications for use of alternative fuels
                    in non-aviation sectors. Commissioners discussed whether the motion was premature in light of its
                      effect on airport lease negotiations (signatory lease and operating agreement, or SLOA) and
                     consideration of airport rates and charges. 
                    The motion to lay the motion on the table failed to pass. The vote was: 
                     In favor: Albro, Gregoire (2) 
                  Opposed: Bowman, Creighton, Felleman (3) 
                    The motion reads as follows: 
                        The Port of Seattle is committed to implementing its long-standing goal of transitioning
                     from traditional jet fuel to sustainable aviation fuels (SAF) at Seattle-Tacoma
                         International Airport (Sea-Tac). Over the years, significant progress has been made to
                         establish the economic and logistical feasibility of this effort. Transitioning to SAF will
                      not only advance the Port's Century Agenda Greenhouse Gas (GHG) ReductionGoals
                      but may also contribute to the reduction of aviation-related ultrafine particulate
                      emissions. In addition, these efforts have the potential to create new sources of
                   employment and economic opportunities throughout our region and state related to
                       production, transmission, and deployment of SAF. 
                        To advance the Port's well-established efforts to transition to SAF at Sea-Tac, the Port
                         of Seattle shall adopt the following goals: 
                             By 2028, 10 percent of jet fuel available at Sea-Tac will be produced locally from
                                sustainable sources. 
                             By 2035, 25 percent of jet fuel available at Sea-Tac will be produced locally from
                                sustainable sources. 

                       Minutes of December 19, 2017, submitted for review on June 5, 2018, and proposed for approval on June 12, 2018.

              PORT COMMISSION MEETING MINUTES                            Page 9 of 10 
                TUESDAY, DECEMBER 19, 2017 
                  By 2050, the maximum blend currently approved for jet fuel will be produced
                                  locally from sustainable sources (e.g., 50 percent from sustainable sources is
                              the maximum blend currently approved for HEFA-based SAF). 
                       These timelines may be adjusted with technological advances, regulatory changes, and
                         policy updates. 
                   The SAF must meet the following principles: reduce lifecycle aviation-related
                    greenhouse gas emissions; be drop-in fuel so no infrastructure or aircraft engine
                       modifications are required; not take land out of food production; and reach price
                        competitiveness. 
                         The following steps will enable the Port to achieve these goals: 
                            In 2018, the Port will reach an agreement with the major airline tenants at Sea-
                          Tac to establish a mutual commitment to advance the use of SAF that meets
                               International Air Transportation Association (IATA) and ASTM International fuel
                                standards and protocols to ensure safe and effective use. 
                            Create a market signal to facilitate the establishment of a domestic/local source
                                of SAF at a commercially competitive rate. 
                     Ensure a commitment from the airlines that they will use SAF preferentially to
                          meet goals established in the motion as long as there is a commercially
                                competitive supply. 
                     Drive initiatives to ensure cost competitiveness for SAF through a variety of
                                methods that are not mutually exclusive, including: 
                      Work with airlines to support state and federal legislation establishing a
                                     cost-effective Low Carbon Fuel Standard (LCFS) consistent with bills,
                                 executive orders, policies and regulations implemented in the States of
                                     California and Oregon and the Province of British Columbia; or similar
                                    provision that includes options for aviation tax credits as well as renewable
                                    diesel for marine and on-road use. 
                                Work with airlines to advocate to the Federal Aviation Administration (FAA),
                                    federal and state legislators, regulatory agencies, industry groups, and
                                  other partners for use of airport revenues to offset costs of SAF through
                                       their co-benefits. 
                      Work with airlines to advocate to the FAA for new grant programs, or to
                                  adjust existing Voluntary Airport Low Emissions (VALE) grant programs to
                                    support SAF through their co-benefits. 
                                Seek mutual financial investments with the Port and its partners. 
                               To help create the demand for renewable diesel, which can be an important
                                    part of making the market demand for SAF, the Port shall work with the
                                   following partners including, but not limited to: Washington State Ferries,
                                     cruise lines, tug boat operators, other harbor craft, truck operators, fishing
                                   boats, the United States Coast Guard, and the Department of Defense. 


                       Minutes of December 19, 2017, submitted for review on June 5, 2018, and proposed for approval on June 12, 2018.

              PORT COMMISSION MEETING MINUTES                           Page 10 of 10 
                TUESDAY, DECEMBER 19, 2017 
              AMENDMENT 
                    Without objection, the motion's statement of policy direction was amended to include reference to
                   community and stakeholder engagement. 
                   The motion for approval of agenda item 6d, as amended, carried by the following vote: 
                   In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5) 
                       7.    STAFF BRIEFINGS  None. 
                       8.    ADDITIONAL NEW BUSINESS  None. 
                       9.    RECESSED AND ADJOURNED 
                The meeting was recessed at 4:32 p.m. to an executive session to discuss one matter relating to
                    performance of public employee(s). Following the executive session, which lasted approximately 45
                     minutes, the Commission adjourned at approximately 5:20 p.m. without returning to public session. 

                    Prepared:                                      Attest: 
                    Paul J. White, Commission Clerk                Ryan Calkins, Commission Secretary 
                    Minutes approved: June 12, 2018. 









                       Minutes of December 19, 2017, submitted for review on June 5, 2018, and proposed for approval on June 12, 2018.