Commissioners                                             Tay Yoshitani 
Tom Albro 
Chief Executive Officer 
Interim Commission President 
Bill Bryant                                P.O. Box 1209 
John Creighton                    Seattle, Washington 98111 
Rob Holland                       www.portseattle.org 
Gael Tarleton                          206.787.3000 
APPROVED MINUTES 
COMMISSION REGULAR MEETING JANUARY 8, 2013 
The Port of Seattle Commission met in a regular meeting Tuesday, January 8, 2013, at Port of
Seattle Headquarters, Commission Chambers, 2711 Alaskan Way, Seattle, Washington. 
Commissioners Albro, Bryant, Creighton, Holland, and Tarleton were present.  Commissioner
Creighton was present after 1:50 p.m. and absent after 3:02 p.m.  Commissioner Holland
participated by telephone and was absent after 3:06 p.m. 
1.   CALL TO ORDER 
The regular meeting was called to order at 12:15 p.m. by Tom Albro, Commission President. 
2.   EXECUTIVE SESSION pursuant to RCW 42.30.110 
The regular meeting was immediately recessed to an executive session estimated to last
approximately 45 minutes to discuss matters relating to a complaint against a public official,
conditions of employment of a public employee, sale or lease of real estate, potential litigation, and
legal risk. Following the executive session, which lasted approximately 40 minutes, the regular
meeting reconvened in open public session at 1:18 p.m. 
PLEDGE OF ALLEGIANCE 
3.   APPROVAL OF MINUTES 
Please refer to the Unanimous Consent Calendar. 
4.   SPECIAL ORDERS OF BUSINESS 
4a.  Election of Officers. 
Commissioner Bryant moved the following slate of officers for 2013: 
President  Commissioner Albro 
Vice President  Commissioner Creighton 
Secretary  Commissioner Holland 
Assistant Secretary  Commissioner Bryant 
Second  Tarleton 
Motion carried by the following vote: 
In Favor: Albro, Bryant, Holland , Tarleton (4) 
Absent for the vote: Creighton



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TUESDAY, JANUARY 8, 2013 
ANNOUNCEMENTS 
Commissioner Albro made several announcements, noting all Port Commissioners had signed an
annual transparency code of conduct, a copy of which is, by reference, made a part of these
minutes, is marked Exhibit A, and is available for inspection in Port offices. He described the
process for filling the Commission vacancy that would be created following Commissioner
Tarleton's resignation, effective January 31, 2013,including electronic submission of applications,
a town-hall-style informational meeting planned for January 22, 2013, and the process for
determining finalists for the appointment with the goal to select an appointee at the Commission's
March 5, 2013, public meeting. 
Commissioner Albro reported that the members of the Audit Committee in 2013 would be
Commissioner Bryant, serving as the Chair, and Commissioner Creighton, serving as Secretary
and alternate member until the selection of a replacement for Commissioner Tarleton, at which
time the new Commissioner would serve as the alternate member of the Audit Committee. Ms.
Christina Gehrke will continue to serve as the non-voting, public member of the Audit Committee. 
In recognition of her service on the Port of Seattle Commission, Commissioner Tarleton received a
replica of a Hanjin container ship. As of January 8, 2013, the model was still en route from South
Korea, but in its place a photograph of the model was presented to Commissioner Tarleton.
Commissioner Bryant commented on Commissioner Tarleton's service on the Port Commission
and the achievements toward a new, more transparent Port since 2008 while protecting familywage
jobs and the environment. Commissioner Tarleton thanked the Commission and CEO for
their service and commented on the prospects for advancing a high quality of life in the Puget
Sound region and the importance to the community of extending the lease at Terminal 46 with
Total Terminals Inc. and associated cargo carrier, Hanjin. 
4b.  Commission Activities Report. 
Presentation document(s): Commission agenda memorandum dated January 2, 2013, provided by
Mary Gin Kennedy, Director of Commission Services. 
Commissioner Bryant summarized Commission activities in December 2012, including adoption of
the Century Agenda, testimony before the King County Council in favor of the ordinance
authorizing acquisition by King County of portions of the Eastside Rail Corridor, attendance at the
Joint Advisory Committee meeting with councilmembers from the City of SeaTac, and attendance
at the Seattle Convention and Visitors Bureau board meeting. 
5.   UNANIMOUS CONSENT CALENDAR 
[Clerk's Note: Items on the Unanimous Consent Calendar are considered routine and are not
individually presented or discussed; however, the Port Commissioners receive the request
documents for review prior to the meeting and have an opportunity to remove items from the
Consent Calendar for separate discussion and vote in accordance with the Commission bylaws.] 
5a.  Approval of the minutes of the regular meeting of October 9, 2012, and the special
meeting of October 23, 2012. 
5b.  Authorization (1) for the Chief Executive Officer to execute a major works construction
contract in the amount of $666,300 to relocate several Port utilities in advance of and to







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TUESDAY, JANUARY 8, 2013 
accommodate Sound Transit's South Link project due to bids exceeding the engineer's
estimate by at least 10 percent and (2) request a budget increase of $220,000 for a
revised project budget of $1,170,000. All costs associated with this work are expected
to be reimbursed in full by Sound Transit consistent with the memorandum of
agreement dated August 15, 2012. 
Request document(s): Commission agenda memorandum dated December 27, 2012, provided by
Wayne Grotheer, Director, Aviation Project Management, and Elizabeth Leavitt, Director, Aviation
Planning and Environmental Programs. 
5c.  Authorization for the Chief Executive Officer to advertise for bids and award and
execute a major construction contract for the North End Main Terminal Roof
Replacement Project at Seattle-Tacoma International Airport for an estimated cost of
$3,669,000. The total project cost is estimated at $4,770,000. 
Request document(s): Commission agenda memorandum dated December 27, 2012, and terminal
diagram provided by Wayne Grotheer, Director, Aviation Project Management Group, and David
Soike, Director, Aviation Facilities and Capital Program. 
5d.  Authorization for the Chief Executive Officer to issue Change Order No. 7 for Contract
MC-0317155, Exterior Gates and Airfield Improvement Projects at Seattle-Tacoma
International Airport to add 109 calendar days to the contract duration.  There is no
funding associated with this request. 
Request document(s): Commission agenda memorandum dated December 27, 2012, provided by
Ralph Graves, Managing Director, Capital Development, and Janice Zahn, Assistant Engineering
Director. 
5e.  Authorization for the Chief Executive Officer to execute a  memorandum of
understanding between the Port of Seattle and the Teamsters Local Union No. 117,
representing Rental Car Facility bus drivers, establishing shift start and stop times. 
There is no estimated increased cost to the Port. 
Request document(s):  Commission agenda memorandum dated December 28, 2012, and
memorandum of understanding provided by Lisa Hornfeck, Labor Relations Manager. 
Motion for approval of consent items 5a, 5b, 5c, 5d, and 5e  Bryant 
Second  Tarleton 
Motion carried by the following vote: 
In Favor: Albro, Bryant, Tarleton (3) 
Absent for the vote: Creighton, Holland 
PUBLIC TESTIMONY 
As noted on the agenda, public comment was received from the following individual(s): 
Fred Felleman, Northwest Consultant for Friends of the Earth. Mr. Felleman commented
on using public funds for the At-Berth Clean (ABC) Fuels program, noting his opinion
that it is appropriate to use public funds to protect public health and stressing the value
of using shorepower for cruise ships.



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TUESDAY, JANUARY 8, 2013 
Karen Gruen, Vice President Corporate Real Estate, Alaska Air Group.  Ms. Gruen
commented on the business conducted by Alaska at Seattle-Tacoma International
Airport including connections to international flights and growth of business by Alaska
since 2009. She spoke in favor of an airline rate structure that would promote efficient,
productive use of Airport facilities, which she stated the current proposal does not do. 
As noticed on the agenda, the Commission advanced to consideration of  
9.   POLICY ROUNDTABLE 
9a.  Port of Seattle Roundtable on industrial business growth. 
Presentation document(s): Commission agenda memorandum dated January 2, 2013, provided by
Tom Barnard, Commission Policy Analyst. 
Presenter(s): Mike Merritt, Manager Government Relations, Puget Sound, Washington. 
In addition to the presentation documents noted above and made available to the public prior to the
meeting, a computer slide presentation was provided to the Commission at the meeting. A copy of
the presentation is marked Exhibit B and is available for inspection in Port offices. 
The following roundtable participants were present: 
Sally Clark, Seattle City Council President; 
Fred Kiga, Vigor Shipyards; 
Matt Lyons, Nucor Steel; 
Dave Gering, Manufacturing Industrial Council; 
Rachel Shrewsbury, Western Towboat Company; and 
Ric Shrewsbury, Western Towboat Company. 
The Commission received a presentation that included the following relevant information: 
It is a long-standing objective of the Port to protect and enhance the Duwamish
Manufacturing and Industrial Center (MIC) of which the SoDo neighborhood is a part; 
The current arena proposal in this area brings with it potential pressure for
redevelopment of the area for uses not compatible with this objective; 
The Port's objectives include expansion of industrial business activity in the MIC,
reduction of sprawl by retaining business growth within the MIC, and ensuring the
planned arena does not harm Port operations and that the City of Seattle will require
adequate mitigation for the arena's impacts; 
Port strategies include retaining or improving access to container terminals, promoting 
growth of existing industrial uses, protecting industrial land from encroachment by
incompatible uses, and improving transit and non-motorized transportation to reduce
vehicle trips in the SoDo area; 
Efforts underway in support of these efforts include discussion of a Port Overlay Zone to
protect maritime and industrial uses, establishment of stronger criteria to limit changes in
industrial lands, identification of possible incentives for industrial expansion, identification
of utility infrastructure needs, and potential streamlined permitting; 
Comments by the Port on arena preliminary scoping documents include the importance
of considering alternative sites, the need to study transportation impacts in greater detail

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TUESDAY, JANUARY 8, 2013 
than has so far occurred, the need to consider a lack of land-use compatibility of the
proposed arena, and the implications of the loss of industrial land and speculative
pressure on other industrial uses in the area; 
An industrial freight access study currently underway has goals to maintain and improve
freight mobility and access to accommodate cargo growth, ensure connectivity between
industrial areas such as the Duwamish MIC and the Ballard-Interbay-Northend MIC,
coordinate freight planning with bicycle, pedestrian, and transit improvements; 
Work by the Port and the Seattle Department of Transportation (SDOT) includes
consideration for a heavy-haul corridor, bicycle versus freight conflicts, the East Marginal
Way freight route, and the use of intelligent transportation systems; 
A survey of transportation and mitigation needs of businesses in the Duwamish MIC is
currently underway by the Manufacturing Industrial Council; and 
Current plans by developers in the SoDo area for housing, retail, hotels, and open space
that would redevelop industrial land were summarized. 
Commissioner Creighton was present after 1:50 p.m. 
The roundtable participants engaged in a discussion that included the following information: 
The business plan for Vigor Shipyards calls for doubling, over the next two or three
years, its current business of $500 million in annual sales, which includes work building
new ships, repair and maintenance of commercial fishing vessels, and military
contracting; 
Transportation challenges as well as changes to zoning and the City of Seattle Shoreline
Master Plan have limiting impacts on maritime businesses; 
Lack of workforce development results in inability to fill existing family-wage jobs in the
maritime and industrial sectors; 
Transportation, utility rates, workforce development, and legislation affecting business
are of interest to companies operating in the MIC; 
The ability to form consensus on cleanup of the Duwamish Superfund Site is significant for
further collaboration with businesses and regulatory agencies within the Duwamish MIC; 
Protection  of  industrial  uses  in  the  Duwamish MIC  requires  consideration  of
transportation issues and building codes in addition to zoning considerations; 
Transportation through the SoDo area and Spokane Street Corridor is vital to boat
building in the Duwamish MIC as is connectivity to the Ballard-Interbay-Northend MIC; 
The City of Seattle is actively involved in projects to benefit the industrial infrastructure in
the Duwamish MIC with other "deep-pocketed" partners; 
Predictability of utility rates is important to industrial businesses in the MIC; 
Consideration for impacts to Port-related operations needs to be integral to the City's
planning efforts for the Duwamish MIC; 
The implications of Washington regulations for public investment in economic
development were discussed; 
Difficulties faced by maritime businesses navigating shoreline management regulations
when the nature of their operations is not well understood were discussed; 
Lack of positive press coverage of the maritime sector was discussed; 
Cost of compliance with stormwater regulations, which some consider inconsistent or
overly burdensome, is a barrier to maritime businesses;






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TUESDAY, JANUARY 8, 2013 
Participation by the Port in funding regional transportation projects was noted; 
The importance of mass transit to complement increased population density and the 
current lack of adequate transit was noted; 
The importance and amount of commercial activity taking place in the Ballard-Interbay-
Northend MIC was noted; and 
It was noted that industrial lands in SoDo account for a third of the City of Seattle's tax
base. 
At the discretion of the Chair, the Commission advanced to consideration of  
PUBLIC TESTIMONY 
At the discretion of the Chair, public comment was received from the following individual(s): 
M.C. Halvorsen, 10002 Aurora Avenue North, Seattle.  Ms. Halvorsen commented on
her opinion that the plans by the Port's environmental staff for areas on the Duwamish
River are inconsistent with the Port's priorities to preserve  industrial lands and
connectivity between industrial areas and with federal regulations. 
Selena Carsiotis, Ballard District Council Member.  Ms. Carsiotis suggested holding a
discussion similar to today's roundtable with participants from the Ballard-Interbay-
Northend MIC. 
RECESSED and RECONVENED 
The regular meeting was recessed at 3:02 p.m. and reconvened at 3:20 p.m. after rearrangement
of Commission Chambers, chaired by Commissioner Albro. 
Commissioner Creighton was absent after 3:02 p.m. 
6.   DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
At the discretion of the President, the following agenda item  
6a.  Motion of the Port of Seattle Commission concerning the At-Berth Clean Fuels
Program. 
was temporarily postponed. Commissioner Albro announced that no final action would be taken
on agenda item 6a, but that the staff presentation would be taken up following agenda item 7b. 
6b.  First and Second Reading and Final Passage of Resolution No. 3673:  A Resolution of
the Port Commission of the Port of Seattle amending Resolution No. 3611, as amended
by Resolution No. 3672, the Seattle Port Commission Bylaws, regarding the
appointment of an interim Port Commissioner in the event of a vacancy in the office of
Port Commissioner. 
Request document(s): Commission agenda memorandum dated January 2, 2013, Resolution
No. 3673, redline version, and attachments  provided by Mary Gin Kennedy, Director of
Commission Services. 
Presenter(s): Ms. Kennedy.




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TUESDAY, JANUARY 8, 2013 
Ms. Kennedy reported that the primary change proposed to the Commission bylaws is for
consistency with state law and would lengthen the amount of time the Commission has to fill a
vacancy in the office of Port Commissioner from 60 to 90 days. She noted other minor procedural
changes to the vacancy-filling process, consistent with the direction given by the Commission in
planning sessions during a Commission retreat.  She explained that due to the absence of
Commissioner Creighton, unanimous consent to combine first and second readings and adopt the
resolution at the same meeting at which it was introduced would not be possible; therefore, the
vote today would be for first reading only [Commission Bylaws Article VIII, Section 1]. 
Motion for First Reading of Resolution No. 3673  Bryant 
Second  Tarleton 
Motion carried by the following vote: 
In Favor: Albro, Bryant, Holland, Tarleton (4) 
Absent for the vote: Creighton 
Resolution No. 3673 did not obtain second reading at this time. 
6c.  Authorization for the Chief Executive Officer to proceed with the design of the Security
Exit Lane Breach Control-Phase 2 project at Seattle-Tacoma International Airport. This
authorization is for $590,000 and the total estimated project cost is $3,750,000. 
Request document(s): Commission agenda memorandum dated December 27, 2012, terminal
diagram, and concept drawing  provided by Wayne Grotheer, Director,  Aviation Project
Management Group, and Wendy Reiter, Director, Aviation Security and Emergency Preparedness. 
Presenter(s): Ms. Reiter and Mr. Grotheer. 
Commissioner Holland was absent after 3:06 p.m. 
The Commission received a presentation that included the following relevant information: 
The request would allow design work for four exit lanes prior to completion of the test
phase of the pilot project; 
Postponing design of the next phase of the exit lane project would delay installation by
about a year; 
Three U.S. airports currently use the exit lane control technology, do not require staffing at
these exit lanes, and have not experienced a failure in the use of the technology to date; 
The technology has been in use in European airports for over 10 years; 
In the unlikely event that phase one of the project is unsuccessful, most of the design
work to be approved in this action request would be reusable; and 
Operational risks are mitigated by incorporating an uninterruptable power supply,
classification of the system as a priority system in the event of a long-term power outage,
and the ability to open the automatic doors and staff the exit lanes as is the current
practice. 
Motion for approval of item 6c  Tarleton 
Second  Bryant 
Motion carried by the following vote:





PORT COMMISSION MEETING MINUTES                   Page 8 of 10 
TUESDAY, JANUARY 8, 2013 
In Favor: Albro, Bryant, Tarleton (3) 
Absent for the vote: Creighton, Holland 
7.   STAFF BRIEFINGS 
7a.  Tourism program briefing. 
Presentation document(s): Commission agenda memorandum dated December 27, 2012, and
computer slide presentation provided by Jane Kilburn, Director of Tourism Development. 
Presenter(s): Ms. Kilburn and Eve Gardiner Lane, Director, First Public Relations, London, United
Kingdom. 
The Commission received a presentation that included the following relevant information: 
Tourism is Washington's fourth largest industry; 
Visitors spent $16.4 billion in Washington in 2011, generated almost $1 billion in state
and local taxes, supported 150,000 jobs, and generated earnings of $4.5 million; 
For every 35 international visitors, one job is created in Washington; 
The tourism industry in Washington lacks consolidated leadership; 
Of Washington's tourism businesses, 80 percent are considered small businesses; 
There has been no state tourism office since 2011; 
The Washington Tourism Alliance (WTA) is an industry-led partnership; 
The Airport has direct flights to the United Kingdom, Germany, France, Japan, and China; 
A plan for sustainable tourism funding is expected to be introduced during the 2013
Washington legislative session; 
States with competing tourism markets have significantly larger budgets than in
Washington; 
The market for tourism to Washington in the United Kingdom is strong; and 
Characteristics of travelers from the United Kingdom were described. 
7b.  Future Baggage Handling at Seattle-Tacoma International Airport. 
Presentation document(s):  Commission agenda memorandum  dated December 28, 2012,
computer slide presentation, and video provided by Wendy Reiter, Director, Aviation Security, and
David Soike, Director, Aviation Facilities and Capital Program. 
Presenter(s): Ms. Reiter and Mr. Soike. 
The Commission received a presentation that included the following relevant information: 
Baggage handling system replacement is divided into categories of recapitalization, in
which old equipment is replaced with new  and optimization, in which significant
alterations to the baggage handling systems accompany replacement of machines; 
Optimization projects that demonstrate a 10-year return on investment for the
Transportation Security Administration (TSA) can be considered for federal funding at
potentially 90 percent of allowable costs; 
The TSA is considering Seattle-Tacoma International Airport as one of three airports that
are a priority for optimization;

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TUESDAY, JANUARY 8, 2013 
The changes to baggage flow at the Airport since September 11, 2001, were
summarized, including various improvements that have been implemented from time to
time and the construction of new buildings to house the modified systems; 
Seattle-Tacoma International Airport has one of the most narrow ticket lobbies of
comparable airports elsewhere in the U.S., and congestion has grown considerably; 
A video depicting the passage of baggage through the Airport baggage system was
presented; 
60,000 to 70,000 bags are processed through the Airport's baggage handling system daily; 
TSA's focus is on replacing scanning machines before failure and reducing the number
of machines to reduce maintenance costs and facilitate redeployment of personnel; 
Optimization of the baggage handling system serves the interests of the Airport due to
plans to grow passenger volumes while minimizing expansion of the Airport's physical
footprint; 
It is estimated that optimization of the baggage handling system might cost about $150
million, a significant portion of which might be eligible for federal funding; and 
A request to begin 30-percent design will be forthcoming on January 22, 2013. 
In response to Commissioner Tarleton, Ms. Reiter reported that the diversion of bags from the
baggage handling system to the security checkpoint scanners is a topic of conversation with TSA
and the airlines.
In response to Commissioner Albro, Mr. Soike reported that the TSA would pay all the costs of
recapitalization of old machines, and that partial federal subsidy might be available for optimization. 
Following consideration of agenda item 7b, the Commission returned to consideration of  
6.   DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
6a.  Motion of the Port of Seattle Commission concerning the At-Berth Clean Fuels Program. 
Request document(s): text of motion provided by Mary Gin Kennedy, Commission Services Director. 
Presenter(s): Stephanie Jones Stebbins, Director, Seaport Environmental and Planning; Rudy
Caluza, Director, Accounting and Financial Reporting; and Tom Tanaka, Senior Port Counsel. 
The Commission received a presentation that included the following relevant information: 
The At-Berth Clean (ABC) Fuels program incentivizes use of low-sulfur fuel by oceangoing
vessels while docked at Port terminals; 
The Puget Sound Clean Air Agency (PSCAA), with Port assistance, has defrayed some
of the cost of the more expensive, low-sulfur fuel since 2009; 
Eight container lines and four cruise lines have participated in the program; 
Approximately 70 percent of frequently calling vessels participate in the voluntary
program; 
Since implementation, the program has helped prevent release of 900 metric tons of
sulfur dioxide, has reduced sulfur emissions by 28 percent from 2005 statistics, and
reduced release of diesel particulate matter by about 34 percent from 2005 statistics; 
New requirements of the North American Emission Control Area have affected the levels
of low-sulfur fuel incentivized by the program;

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TUESDAY, JANUARY 8, 2013 
The State Auditor's Office's annual public accountability audit for 2011 included a finding
questioning the Port's authority to engage in or contract for pollution remediation efforts,
particularly the ABC Fuels program; 
Similar pollution-reduction efforts are present at other U.S. ports, including competitors
of the Port of Seattle; 
The Port believes that it is reasonable to view its contract with the PSCAA as a purchase 
of services designed to reduce maritime pollution from Port facilities that produces a
proven regional benefit; and 
The Port is committed to transparency and cooperation with the State Auditor's Office 
(SAO) to resolve audit concerns, including consideration of possible additional contract
terms with the PSCAA or other mechanism with the goal of continuing the proven
benefits of the ABC Fuels program. 
Commissioner Albro commented that the reduction of emissions targeted by the ABC Fuels
program reduces the Port's environmental footprint and risks to human health. There was a
discussion of the benefit of the program to the public good and the technicalities of what could
constitute a gift of public funds under Washington law and the SAO assessment that the Port did
not have the authority to engage in a program like the ABC Fuels program. Discussion included
comments on the competitiveness issues that would be raised by the inability to defray the costs of
low-sulfur fuels. Commissioners Albro, Bryant, and Tarleton spoke in favor of finding a way to
preserve the program. 
Following consideration of agenda item 6a, the Commission advanced to consideration of  
7.   STAFF BRIEFINGS 
Preliminary Briefing on the Part 150 Airport Noise Study. 
Linda Steward, Director of Community Partnerships, reported that on January 22, 2013, the
Commission would learn more about proposed noise mitigation recommendations, including a
ground run-up enclosure, or "hush house," in connection with the Airport's Part 150 update. She
stated that after January 22 the study would be released to the public for review and comment,
after which staff will seek Commission approval for a Part 150 submission to the Federal Aviation
Administration for its review and approval. 
8.   NEW BUSINESS 
None. 
9.   POLICY ROUNDTABLE 
Agenda item 9a having been disposed of previously, no further policy roundtables were considered. 
10.  ADJOURNMENT 
There being no further business, the regular meeting was adjourned at 4:42 p.m. 

Rob Holland 
Secretary (conformed copy) Signer's Name 
Minutes approved: March 12, 2013.