Commissioners                                             Tay Yoshitani 
Chief Executive Officer 
Stephanie Bowman 
Commission Co-President 
Courtney Gregoire                      P.O. Box 1209 
Commission Co-President          Seattle, Washington 98111 
Tom Albro                        www.portseattle.org 
Bill Bryant                                206.787.3000 
John Creighton 
APPROVED MINUTES 
COMMISSION REGULAR MEETING APRIL 22, 2014 
The Port of Seattle Commission met in a regular meeting Tuesday, April 22, 2014, in the
International  Auditorium  at  Seattle-Tacoma  International  Airport,  Seattle,  Washington.
Commissioners Albro, Bowman, Bryant, and Gregoire were present. 
Commissioner Creighton was absent. 
1.   CALL TO ORDER 
The regular meeting was called to order at 12:02 p.m. by Stephanie Bowman, Commission Co-
President. 
2.   EXECUTIVE SESSION pursuant to RCW 42.30.110 
The regular meeting was immediately recessed to an executive session estimated to last 60 
minutes to discuss matters relating to legal risk. Following the executive session, which lasted
approximately 60 minutes, the regular meeting reconvened in open public session at 1:06 p.m. 
The Commission also recessed into executive session later in the meeting as noted below. 
PLEDGE OF ALLEGIANCE 
Without objection, the Commission advanced to the order of  
6.   DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
and proceeded to consideration of the following agenda item  
6a.  Authorization for the Chief Executive Officer to terminate two existing leases and enter
into two new leases with Clipper Navigation Inc. that include Pier 69 for a term of 15
years ending April 30, 2029, with one 5-year option to extend and a separate lease for
the Vine Street Submerged Land for a term of 7 years, 8 months and 15 days with a first
option to extend until April 30, 2029, and a second 5-year option substantially as
drafted in Attachment 1 and according to the terms laid out in this memorandum at a
fair market rate. 


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





PORT COMMISSION MEETING MINUTES                    Page 2 of 8 
TUESDAY, APRIL 22, 2014 
Request document(s) provided by Patricia Spangler, Real Estate Manager, and Melinda Miller,
Director, Portfolio and Asset Management: 
Commission agenda memorandum dated April 14, 2014. 
Presentation slides. 
Lease agreement between the Port of Seattle and Clipper Navigation Inc. 
Memorandum of agreement between the City of Seattle and the Port of Seattle. 
Presenter(s): Ms. Spangler and Darrell Bryan, President & CEO, Clipper Navigation Inc. 
The Commission received a presentation that included the following relevant information: 
Clipper Navigation Inc. has been a tenant of the Port since 1989. Its premises include
administrative offices, a ferry terminal at Pier 69, a repair shop, interior storage, a south
apron, a berthing area, and a loading dock. 
Clipper employs 104 full-time staff, a number that rises to 139 during the peak summer
season. 
The current leases have been amended over time, and expire in 2019. 
The leased area includes a submerged portion of the Vine Street right-of-way, for which
the Port holds a permit with the City of Seattle that cost $13,500 in 2014 and is subject to
increases. 
Current appraisal of the premises indicates a market rent higher than that currently paid
by the tenant. 
Staff proposes a restructuring of two current leases to separate Clipper's Pier 69
premises from the Vine Street submerged land portion of the premises. Both would be
15-year leases with one 5-year option to extend. Rent will increase to $294,650, with
consumer price index adjustments and renegotiation opportunities every five years. 
Clipper will reimburse the Port for the Vine Street submerged land permit under the new
leases and plans a number of improvements to the premises at Pier 69.
Mr. Bryan commented on the collaborative and positive working relationship between his
company and the Port during negotiation of the new leases. 
Motion for approval of item 6a  Bryant 
Second  Albro 
Motion carried by the following vote: 
In Favor: Albro, Bowman, Bryant, Gregoire (4) 
Absent for the vote: Creighton 
Following the vote on agenda item 6a, the Commission returned to consideration of  
3.   SPECIAL ORDERS OF BUSINESS 
3a.  Recognize Winners of the 2013 Seattle-Tacoma International Airport Green Gateway
Environmental Excellence Awards. 

Minutes of April 22, 2014, proposed for approval on January 27, 2015.






PORT COMMISSION MEETING MINUTES                    Page 3 of 8 
TUESDAY, APRIL 22, 2014 
Presentation  document(s) provided by Elizabeth Leavitt, Director Aviation Planning &
Environmental Services, and Leslie Stanton, Environmental Strategy Manager: 
Commission agenda memorandum dated April 4, 2014. 
Presentation slides. 
Presenter(s):  Ms.  Leavitt and Jeremy Webb, Environmental Program Manager, Aviation
Environmental Programs Group. 
Mr. Webb noted the purpose of the award program, which is recognition of the Port of Seattle's
tenants, airlines, and business partners for their outstanding environmental leadership.  He
introduced the following award recipients, noting their specific achievements:  Alaska Airlines 
received recognition for their leadership in the Greener Skies Initiative and transition to electric
ground support equipment,Dufry/The Hudson Group in the Environmental Performance category, 
and HMS Host received recognition for their outstanding performance in the Airport Food Bank
Donation Program and their waste reduction efforts in casual dining concepts. 
3b.  Briefing  Environmental Accomplishments for 2013. 
Presentation document(s) provided by Elizabeth Leavitt, Director Aviation Planning and
Environmental Services, and Stephanie Jones Stebbins, Director, Seaport Environmental and
Planning: 
Commission agenda memorandum dated April 3, 2014. 
Port of Seattle presentation slides. 
Seaview Boatyard presentation slides. 
Presenter(s): Ms. Leavitt, Ms. Jones Stebbins, and Phil Riise, President, Seaview Boatyard. 
The Commission received a presentation that included the following relevant information: 
Alaska Airlines will reduce an estimated 1,000 tons of greenhouse gases and save
$300,000 a year in fuel costs due to their participation in the Electric Ground Support
Equipment Project. 
The Renewable Fuel Program has endowed the Airport with more electric charging
stations than any other airport on the West Coast. 
At the end of 2013, the Port's Clean Air Strategy was adopted, and the Port intends to
reduce its greenhouse gas emissions 20 percent by 2018. 
The Port's Greener Skies Initiative began inaugural flightsin 2013. Gradual descent of
aircraft in lieu of the traditional "stair step" descents commonly used, airlines will be able
to reduce emissions and fuel consumption. 
Food bank donations by Airport partners have increased about 40 percent. 
The Sustainable In-Sights program has been launched and consists of messages posted
around the terminal that educate passengers on Aviation Environmental Program 
projects. 
Development of the Sustainable Airport Master Plan is underway. 
Key environmental program metrics were described. 

Minutes of April 22, 2014, proposed for approval on January 27, 2015.





PORT COMMISSION MEETING MINUTES                    Page 4 of 8 
TUESDAY, APRIL 22, 2014 
The 2013 Northwest Ports Clean Air Strategy update included introduction of
measurable emissions reduction goals for the ports of Tacoma, Seattle, and Metro
Vancouver.
There is a revised truck scrappage program (Scrappage and Retrofits for Air in Puget
Sound, or "ScRAPS") that will launch in May. The goal is to replace older truck engines
with newer, cleaner, engines. 
Environmental remediation efforts continue at Terminal 91, the East Waterway
Superfund Site, Terminal 117, and the Lower Duwamish Waterway Superfund Site. 
Seaview Boatyard, a Port tenant for 41 years, has implemented many environmentally 
conscious programs. Much of the boatyard's pollution reduction is due to scrupulous 
adherence to regulations. 
4.   UNANIMOUS CONSENT CALENDAR 
[Clerk's Note: Items on the Unanimous Consent Calendar are considered routine and are not
individually discussed. Port Commissioners receive the request documents prior to the meeting
and may remove items from the Consent Calendar for separate discussion and vote in accordance
with Commission bylaws.] 
4a.  Approval of the claims and obligations for the period of March 1 through March 31,
2014, including accounts payable checks nos. 822533-823590 in the amount of
$28,208,388.18 and payroll checks nos. P-176321-176526 in the amount of $7,914,097.68
for a fund total of $36,122,485.86. 
4b.  Authorization for the Chief Executive Officer to: (1) execute the East Marginal Way
Grade Separation project's (WP #102007) Memorandum of Agreement Between The
City of Seattle and the Port of Seattle Regarding the East Marginal Way Grade
Separation (MOA) and expend $800,000 for final close-out construction elements and
the conveyance of required properties/easements to the City of Seattle for a total
project cost of $56,256,171; (2) advertise, award, and execute a major works
construction contract for the East Marginal Way Phase II project (WP#104866), and
increase the project authorization in the amount of $2,400,000 for a total project
authorization of $3,375,000; (3) execute the Argo Yard Truck Roadway Supplemental
Agreement to Memorandum of Understanding to authorize acquisition of real property
interests and term permit necessary for the Argo Yard Truck Roadway project (WP#'s
104739/104751/104754); and (4) advertise, award, and execute a major works
construction contract for the Argo Yard Truck Roadway project (WP#'s
104739/104751/10754), and increase the project authorization in the amount of
$1,200,000 for a total project authorization of $7,750,000. 
Request  document(s) provided by Michael  Burke, Director, Seaport Leasing and Asset
Management, and Tim Leonard, Capital Project Manager: 
Commission agenda memorandum dated April 15, 2014. 
Memorandum of Agreement. 
Supplemental Agreement to Memorandum of Understanding with exhibits. 


Minutes of April 22, 2014, proposed for approval on January 27, 2015.




PORT COMMISSION MEETING MINUTES                    Page 5 of 8 
TUESDAY, APRIL 22, 2014 
4c.  Authorization for the Chief Executive Officer to execute a project-specific professional
services contract to provide design services in support of future dining and retail
terminal utility upgrades at Seattle-Tacoma International Airport. No funding is
associated with this request. 
Request document(s) provided by Dave Soike, Director, Aviation Facilities and Capital Programs,
and Wayne Grotheer, Director, Aviation Project Management: 
Commission agenda memorandum dated April 22, 2014. 
Motion for approval of consent items 4a, 4b, and 4c  Albro 
Second  Gregoire 
Motion carried by the following vote: 
In Favor: Albro, Bowman, Bryant, Gregoire (4) 
Absent for the vote: Creighton 

5.   PUBLIC TESTIMONY 
An opportunity for public comment was provided, but no testimony was offered at this time. 
6.   DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
Agenda item 6a having been decided previously, the Commission advanced to consideration of  
6b.  Authorization for the Chief Executive Officer to (1) authorize design of a passenger
ramp for Gate S1 at Seattle-Tacoma International Airport; (2) competitively procure the
ramp for Gate S1; and (3) use Port crews to construct and install the ramp at Gate S1.
This single authorization is for $1,185,000 of a total estimated project cost of
$1,205,000. 
Request document(s) provided by Wayne Grotheer, Director, Aviation Project Manager Group, and 
Michael Ehl, Director, Aviation Operations: 
Commission agenda memorandum dated April 14, 2014. 
Map of proposed Federal Inspection Services (FIS) busing plan route. 
Presenter(s): Nick Harrison, Senior Manager, Airport Operations, and Sean Anderson, Capital
Project Manager, Aviation Project Management Group. 
The Commission received a presentation that included the following relevant information: 
The Airport expects more international arrivals during the peak period than the FIS can
accommodate and proposes a bus route that will transport passengers from international
flights that have been parked in remote waiting areas or domestic gates to the South
Satellite terminal where the FIS is located. 
This operation system requires a lift truck to transport wheelchair passengers and a
permanent ramp at the building. 

Minutes of April 22, 2014, proposed for approval on January 27, 2015.



PORT COMMISSION MEETING MINUTES                    Page 6 of 8 
TUESDAY, APRIL 22, 2014 
Currently an elevator exists for wheelchair passengers or passengers with strollers, but
is inconvenient and difficult to reach. 
The project will install a ramp at gate S-1 to connect the International Corridor to the
apron level at the South Satellite. Preliminary planning resulted in the assessment that a
permanent ramp is necessary, rather than the temporary ramp originally in the project
scope. 
Code requirements for a gentler slope and intermediate landings have increased the size
of the ramp as originally planned. 
Motion for approval of item 6b  Albro 
Second  Gregoire 
Motion carried by the following vote: 
In Favor: Albro, Bowman, Bryant, Gregoire (4) 
Absent for the vote: Creighton 
RECESSED AND RECONVENED 
The regular meeting was recessed at 2:33 p.m. and reconvened at 2:41 p.m., chaired by
Commissioner Bowman. 
7.   STAFF BRIEFINGS 
7a.  Seattle-Tacoma International Airport Capital Program. 
Presentation document(s) provided by Mark Reis, Managing Director, Aviation: 
Commission agenda memorandum dated April 16, 2014. 
Presentation slides. 
Presenter(s):  Mr.  Reis; Dav id  Soike, Director, Facilities and Capital Program; and Borgan
Anderson, Director, Aviation Finance and Budget. 
The Commission received a presentation that included the following relevant information: 
The North Satellite baggage system improvements component of the NorthSTAR project
is expected to be brought to the Commission in July. 
The final costs of the International Arrivals Facility (IAF) project and authorization for
method of delivery should be presented to the Commission by June. 
Initial capital costs will drive growth in cost per enplanement and debt per enplanement.
These costs will drop with greater use of the facility. 
Among similarly positioned origin-and-destination airports in the U.S., Sea-Tac is among
the top five fastest growing airports. 
Major capacity projects, such as the International Arrivals Facility and North Satellite
expansion, are driven by upward trends in enplanements, number of seats per aircraft,
aircraft load factors, and passengers per departure.  The trends affecting increased
capacity per aircraft help explain why the numbers of arrivals and departures at the

Minutes of April 22, 2014, proposed for approval on January 27, 2015.

PORT COMMISSION MEETING MINUTES                    Page 7 of 8 
TUESDAY, APRIL 22, 2014 
Airport have generally decreased over the same period. Arrivals and departures have
begun to rise again and are expected to continue to increase based on projections
accepted by the Federal Aviation Administration (FAA), applying capacity pressure to
Airport infrastructure. 
Significant capital projects underway or imminent include the new IAF, the NorthSTAR
revitalization and expansion in partnership with Alaska Airlines, Airport-wide baggage
optimization, and rebuilding Runway 16C/34C (the center runway). 
Additional anticipated capital projects include work on aircraft overnight parking, noise
mitigation, renovation of the Airport service tunnel, provision of permanent, long-term
emergency backup power, and installation of electrical charging stations for ground
support equipment. 
Key principles applied in working out the funding for the Airport's capital program include
maximizing the use of grants and passenger facility charges (PFCs) to minimize airline
costs. There is a target of maintaining a cash balance of about $200 million to cover 10
months operations and maintenance cost. The minimum debt service coverage ratio is
targeted at 1.25. 
Consideration is given in projecting a plan of finance to applying PFCs to bonded debt
versus using them to build projects on a pay-as-you-go basis. 
Project funding is typically designed around cost centers such that fees for services
related to the improvement help to pay for them. 
Current expectation is that reconstruction of the center runway would be financed with a
$26 million FAA grant and bonds. Baggage optimization will likely be financed through
$93 million in grants from the Transportation Security Administration (TSA) and bonds.
The NorthSTAR project will likely be funded through PFCs, funding from the Airport
Development Fund, and the majority of the funding would come from bonds. The IAF
would similarly be funded from the Airport Development Fund, passenger facility
charges, and bonds, with bonds constituting the majority of the funding. About threefourths
of the IAF would be paid for by airlines and one fourth by the Port through
nonaeronautical revenue. 
A majority-in-interest vote by the airlines is expected in late May, with ballots returning in
June or July on the NorthSTAR program. 
The estimated cost for the IAF at $316 million is very preliminary. A major fluctuation in
that cost would result in re-balancing considerations for other projects in the program
and their particular funding mechanisms. Some projects might be scaled back or
eliminated and sources of funding could be reallocated. 
Costs associated with building the new IAF will be recovered from international carriers
as a discrete cost center. It is expected that a substantial portion of PFCs will be applied
to the project as well. This is consistent with the historic low percentage of PFCs used to
fund improvements in the existing Federal Inspection Services facility.  It is also
consistent with negotiations with the airlines to execute the current airline lease, known
as the Signatory Lease and Operating Agreement, or SLOA. 
Approximately $67 million in PFCs are expected to be collected in 2014. PFCs are used
first to pay debt service for bonds backed by passenger facility charges and issued in
1998. Only PFCs can be used to pay for this particular bond issuance. The second
priority for PFCs is debt service on revenue bonds used for projects eligible to use

Minutes of April 22, 2014, proposed for approval on January 27, 2015.

PORT COMMISSION MEETING MINUTES                    Page 8 of 8 
TUESDAY, APRIL 22, 2014 
passenger facility charges. Using PFCs in this way helps manage airline costs by
keeping bond debt service out of the airline rate base. 
It is important to preserve Sea-Tac's marketability for international service by controlling
FIS rates. Sea-Tac's cost per enplanement (CPE) is about in the middle of the range of
CPEs for peer airports now and as projected into the future. 
Commissioners Bryant and Bowman commented on  their need for more concrete funding
alternatives and more clearly defined project spending limits based on projected passenger
volumes. There is a desire to better understand early in the process what trade -offs will be needed 
in order to successfully complete needed infrastructure improvements.
Commissioner Albro noted the need to focus on the Airport's marketability in view of its related
impact to the funding sources outlined above. Several Commissioners expressed that their interest
at this time is focused on the larger IAF and NorthSTAR projects: their estimated costs and the
plan for financing them without compromising other airport infrastructure needs. Commissioner
Albro commented on the prospect that the proposed Airport capital program might over-build
Airport facilities not in line with demand. 
8.   NEW BUSINESS 
None. 
RECESSED AND RECONVENED 
The regular meeting was recessed at 4:07 p.m. to an executive session estimated to last 60 
minutes to discuss matters relating to qualifications for public employment. Following the executive
session, which lasted approximately 90 minutes, the regular meeting reconvened in open public
session at 5:38 p.m. 
9.   ADJOURNMENT 
There being no further business, the regular meeting was adjourned at 5:38 p.m. 

Tom Albro 
Secretary 
Minutes approved: January 27, 2015. 




Minutes of April 22, 2014, proposed for approval on January 27, 2015.