Commissioners                                             Ted Fick 
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 DECEMBER 2, 2014 
The Port of Seattle Commission met in a regular meeting Tuesday, December 2, 2014, at Port
of Seattle Headquarters, Commission Chambers, 2711 Alaskan Way, Seattle, Washington.
Commissioners Albro, Bowman, Bryant, and Creighton were present. CommissionerGregoire 
was absent. 
1.   CALL TO ORDER 
The 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 Commission immediately recessed to an executive session estimated to last 60 minutes to
discuss matters relating to potential litigation, legal risk, and performance of a publicly bid contract. 
Following the executive session, which lasted approximately 60 minutes, the regular meeting
reconvened in public session at 1:12 p.m. 
PLEDGE OF ALLEGIANCE 
3.   SPECIAL ORDERS OF BUSINESS 
3a.  Motion of the Port of Seattle Commission to rename Bell Street Pier as Paul Schell
Center in tribute to the late Port Commissioner Paul E. Schell. 
Presentation document(s) included the . 
Presenter(s): Melinda Miller, Director, Real Estate Portfolio and Asset Management; John
Oppenheimer, CEO, Columbia Hospitality; and Pam Schell. 
Former Mayor Paul Schell died July 27, 2014, at the age of 76. Ms. Miller commented onMayor 
Schell's work as a developer, Port Commissioner, andMayor of Seattle. She noted his passion,
vision, and effort to redevelop the Central Waterfront as an interesting, attractive, and economically
active location, and to promote the City of Seattle as an internationally recognized place for trade,
development, and artistic endeavor. Mr. Oppenheimer commented on Mayor Schell's persistent
advocacy for the Bell Harbor Conference Center. Ms. Schell spoke of her late husband's love of
Seattle and the Port and his hope for better cooperation between the ports of Seattle and Tacoma. 

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TUESDAY, DECEMBER 2, 2014 
The motion to rename the Port of Seattle facility at Pier 66 currently known as Bell Street
Pier as the Paul Schell Center in tribute to the late Port Commissioner Paul E. Schell carried
by the following vote: 
In Favor: Albro, Bowman, Bryant, Creighton (4) 
Absent for the vote: Gregoire 
4.   UNANIMOUS CONSENT CALENDAR  None. 
5.   PUBLIC TESTIMONY 
Public comment was received from the following individual(s): 
Hayward Evans, Community Coalition for Contracts and Jobs, who commented on the
relationship between HMS Host and Autogrill and fair competition for units in the Airport
Dining and Retail program. 
Paul Chiles, Seattle, who commented on presentation of a Port of Seattle disparity study. 
Eddie Rye Jr., Community Coalition for Contracts and Jobs, who commented on fairness
in providing lease extensions in the Airport Dining and Retail program and the criteria for
being considered a minority or disadvantaged business enterprise. 
Lawrence Pang, Seattle Chinese Chamber of Commerce, who commented on interest in
small and minority business opportunities with the Port of Seattle. 
6.   DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
6a.  Second Reading and Final Passage of Resolution No. 3700: A Resolution of the Port
Commission of the Port of Seattle declaring Aerial Work Platform No. SPE 527 surplus
for Port District purposes and authorizing the Chief Executive Officer to execute all
documents necessary for its sale or disposal. 
Request document(s) included a Commission agenda memorandum and Resolution No. 3700. 
There was no presentation at this time; however, the Port Commissioners received the request
documents for review prior to the meeting of December 2, 2014. 
The motion for Second Reading and Final Passage of Resolution No. 3700 carried by the
following vote: 
In Favor: Albro, Bowman, Bryant, Creighton (4) 
Absent for the vote: Gregoire 
6b.  First Reading of Resolution No. 3701, repealing Resolution No. 3549, as amended: A
Resolution of the Port Commission of the Port of Seattle extending the Port's non-
discrimination policy to Port contractors for the provision of domestic partner benefits. 
Request document(s) included a Commission agenda memorandum, Resolution No. 3701, and
Resolution No. 3549. 

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TUESDAY, DECEMBER 2, 2014 
Presenter(s): Ralph Graves, Managing Director, Capital Development, and Anne Purcell, Senior
Port Counsel. 
The presentation on Resolution No. 3701 included the background of adopting, in 1994, the 
extension of the Port employee benefits available to employee spouses to include domestic
partners. At that time, non-discrimination principles were applied to sexual orientation. 
Subsequently, Resolution No. 3549 extended these benefits to Port contractors. It was reported
that Washington's Referendum 74 recognizing same-sex marriage has rendered Resolution
No. 3549 unnecessary. Its repeal will not affect the 1994 policy on Port employees' domestic
partner benefits. 
The motion for First Reading of Resolution No. 3701 carried by the following vote: 
In Favor: Albro, Bowman, Bryant, Creighton (4) 
Absent for the vote: Gregoire 
6c.  First Reading and Public Hearing of Resolution No. 3702: A resolution of the Port
Commission of the Port of Seattle declaring the Port-owned sewer mains and manhole
located within the public right of way on South 170th Street, SeaTac, Washington, to be
surplus and no longer needed for port district purposes and authorizing the Chief
Executive Officer to execute all documents necessary for transfer of the title of the
sewer mains and manhole to the Valley View Sewer District. 
Request document(s) included a Commission agenda memorandum, Resolution No. 3702, and
Valley View Sewer District Warranty Bill of Sale. 
Presenter(s): George England, Capital Program Leader, Aviation Project Management Group. 
The presentation on Resolution No. 3702 noted the action is a condition of site improvements at
the Doug Fox lot, which required extension of the Valley View Sewer District sewer main. The
project occurred within the limits of the City of SeaTac, which is supportive of the transfer. The
assets include 138 feet of sewer main and a sewer manhole valued at $82,211, which will be 
accounted for as public expense to the Port. 
First Reading of Resolution No. 3702 was moved and seconded. 
PUBLIC HEARING 
Commissioner Bowman declared the public hearing on Resolution No. 3702 open. There was no
testimony at this time, and the hearing was closed. 
The question recurred on the motion for First Reading of Resolution No. 3702, which carried
by the following vote: 
In Favor: Albro, Bowman, Bryant, Creighton (4) 
Absent for the vote: Gregoire 

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TUESDAY, DECEMBER 2, 2014 
6d.  Authorization for the Chief Executive Officer to (1) advertise and execute a
construction contract for the Runway 16C/34C Reconstruction project; and
(2) advertise and execute a project-specific service agreement for special testing and
inspection services. This authorization request is for $99,139,000 and the estimated
total cost of the project is $113,095,000 (CIP #C800406). 
Request document(s) included a Commission agenda memorandum and presentation slides. 
Presenter(s): Mark Coates, Senior Manager, Airport Operations, and Ralph Wessels, Capital
Project Manager, Aviation Project Management Group. 
The presentation on agenda item 6d included the following key information: 
The project cost has increased slightly from the previous estimate by approximately
$10.2 million, primarily due to additional pavement replacement along the runway, and
better definition of work on Taxiway H/J. Work on the electrical and communications
systems, storm drain designs, and Federal Aviation Administration (FAA) impacts cost
slightly more than expected. 
The runway pavement, designed for a 20-year service life, has been in use for 44 years. 
The size and history of repairs to the runway were summarized. 
Blast pads on Runway 16C/34C and Runway 16 Left/34 Right (16L/34R) will be replaced
to meet FAA standards. 
Reconfiguration of a sharp right turn in Taxiway H/J will reduce runway incursions, in
which aircraft stop beyond the stop bar and overhang the next runway. 
Construction will take place over two seasons due to operational issues associated with
closing two runways simultaneously. 
Construction of Runway 16C/34C is anticipated to begin in April 2015. Construction of
Runway 16L/34R would take place between June and August 2016. All work should be
completed by September 2016. 
In the ensuing discussion, it was clarified that the project has been put to a majority-in-interest vote, and
the airlines are supportive. 
It was noted that, while a similar runway pavement replacement project in 2009 took place over
one season, that project's scope was smaller. The Runway 16C/34C Reconstruction project will
replace more square yards of pavement, and includes much additional work. Therefore, there is no
practical way to avoid a two-season construction project. However, results from the NEPA-SEPA
assessment (National and State, respectively, Environmental Policy Acts) indicate no additional
noise level from this project. The best way to minimize any impact is to aggressively pursue
construction with the intent of early completion. 
Motion for approval of item 6d carried by the following vote: 
In Favor: Albro, Bowman, Bryant, Creighton (4) 
Absent for the vote: Gregoire 

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TUESDAY, DECEMBER 2, 2014 
6e.  Authorization for the Chief Executive Officer to: (1) authorize an additional $427,000 to
complete the construction of the Doug Fox Site Improvements project at Seattle-
Tacoma International Airport, and (2) issue change orders to extend the construction
contract duration by up to 180 days to complete changed work associated with the
operations building. The total amount of this request is $427,000 for a total project cost
of $6,930,000 (CIP #C800451). [subsequently laid on the table] 
Request document(s) included a Commission agenda memorandum and presentation slides. 
Presenter(s): James R. Schone, Director, Aviation Business Development, and George England,
Capital Program Leader, Aviation Project Management Group. 
The presentation on agenda item 6e included the following key information: 
The requested funds cover the increased soft costs needed to complete and close out
the Doug Fox Site Improvements project, including cost impacts resulting from a sixmonth
schedule delay. The requested amount will provide additional construction
contingency to cover risks associated with the remaining project work. 
On July 9, 2013, the Port Commission approved the lease with ATZ Inc. and a total
project cost of $5.1 million. This was later increased to $6.5 million, and the contract was
executed with the successful bidder in October 2013. 
The lease specifies relief if the project is delivered late. 
Most of the important project expenditures are forecast to exceed authorized funding by 
late December 2015. Without Commission approval of the requested funds, construction
may have to be suspended or terminated. 
The airlines are not paying for this project. Any overages and financial gaps must be
covered by the Airport Development Fund. 
Causes of the project delay include time spent in value engineering undertaken to
reduce construction costs. This effort delayed the project 28 days. 
Another cause was increased construction time due to unknown paving conditions as
work commenced. Substandard paving sections were discovered and had to be
removed and replaced, mostly within the authorized budget. 
Other causes included weather delays and the complexity of constructing improvements
to the facility while maintaining tenant operations. The most significant delay was
delayed permitting from the Washington State Department of Labor and Industries,
amounting to 84 days. 
As of today, a building at the south end of the Doug Fox Parking Lot has been replaced
by a modular structure.  A temporary entrance and exit have been  provided to
accommodate tenant operations, and a new canopy area has been constructed. 
Discussion ensued in which it was noted that the project has significantly exceeded its original
scope and timeline and that ATZ was the only bidder for the expanded project in 2012. Bidding was
constrained in part due to the Port's desire to avoid competition with other similar parking
operations near the Airport. 


Minutes of December 2, 2014, proposed for approval on July 14, 2015.


PORT COMMISSION MEETING MINUTES                    Page 6 of 9 
TUESDAY, DECEMBER 2, 2014 
The Commission noted that, based on the ongoing work on the Sustainable Airport Master Plan,
the future use of the lot cannot be projected beyond 8-10 years. The baseline financial analysis has
changed over time, but the baseline analysis contemplates 2012 revenues of $2 million growing by
2.2 percent over 15 years of presumed lease time. Assuming a change in use by the end of the
five-year lease, potential future uses and related revenue projections for the lot were requested,
based on conservative and actual baselines. 
The Commission expressed a desire for analysis of lessons learned from the challenges of the
project, including the adequacy of evaluation of alternatives in scope and means, clarity of 
communication, and the presumption that all stakeholders would benefit from continued tenant
operations and the associated rent. An analysis of whether the internal rate of return is keeping up
with the financial investment was requested. Also requested was a review of Airport project
planning, given the uncertainties associated with an incomplete Sustainable Airport Master Plan. 
Commissioners noted that as a condition of the request for proposals, successful proposers were 
required to divest themselves of any property within a three-mile radius of the site. ATZ divested
itself of such a joint venture as recently as December 1, 2014, approximately a year and a half after
the lease was executed. The delay in divesting casts a shadow on correct performance according
to the lease terms. 
It was suggested that a moratorium on the entire project may be necessary until the Sustainable
Airport Master Plan is completed. 
Without objection, further consideration of agenda item 6e was laid on the table. 
Without objection, the following agenda item  
6f.   Authorization for the Chief Executive Officer to amend the lease with ATZ Inc. for the
operation of the Doug Fox Parking Lot located north of South 170th Street and east of
the Northern Airport Expressway to extend the term nine months, defer increases in
the concession fee and Minimum Annual Guarantee, and provide other modest relief
for operational impacts and delays caused by construction of the Doug Fox Parking
Lot Services Upgrades Project. [laid on the table] 
was laid on the table. 
7.   STAFF BRIEFINGS 
7a.  Port of Seattle Disparity Study Results. 
Presentation document(s) included a Commission agenda memorandum and presentation slides. 
Presenter(s): Luis Navarro, Director, Office of Social Responsibility; Mian Rice, Manager, Small
Business Program and Policy Manager; and Todd Pickton, Managing Director, BBC Research and
Consulting. 


Minutes of December 2, 2014, proposed for approval on July 14, 2015.

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TUESDAY, DECEMBER 2, 2014 
The presentation on the Port of Seattle disparity study included the following key information: 
The Port's Office of Social Responsibility(OSR) tracks small business participation in
applicable Port contracts based on percentage of Port spending. It identified 30 percent
participation by small businesses in 2013. The Century Agenda goal is 40 percent. 
A disparity study helps determine whether a contracting environment is fair and equitable
to all parties involved. The analysis compares actual utilization of minority and woman -
owned businesses to their availability. An index is used to determine parity or disparity of
an entity's business practices. An index of 100 or more constitutes parity, the state of
being equal. Many courts have determined that an index of 80 or less constitutes a
substantial disparity and can be treated as an inference of discrimination. 
For the purposes of the disparity study, identified groups include small, disadvantaged
business enterprises (DBEs), minority-owned business enterprises (MBEs), and womenowned
business enterprises (WBEs). To avoid double-counting, minority women-owned
businesses are counted either as DBEs or MBEs. Therefore, WBE effectively refers to
businesses owned by Caucasian women. Airport concessions disadvantaged business
enterprises (ACDBEs) are regulated under separate rules from these groups and were
not included in the study. 
Performance of the disparity study was voluntary for the Port, although the studies are
mandatory to implement race- or gender-conscious DBE programs that involve federal
funding for government entities within the jurisdiction of the U.S. Ninth Circuit Court of
Appeals. 
BBC Research and Consulting conducted a disparity study for construction and
construction-related professional services contracted throughout the Port between 2010
and 2013 with the support of local DBE Pacific Communications Consulting. Contracts
executed or awarded during the time period were included; previously executed work
ongoing during the study time period was not included. 
Overall, MBE and WBE availability for Port  construction and construction-related
professional services contracts is 18.2 percent. Utilization was analyzed at 10.2 percent.
This included firms that were too large to be considered DBEs, but were still MBEs or
WBEs, in accordance with the U.S. Ninth Circuit Court of Appeals' stated preference for
disparity studies. It also included businesses that met MBE and WBE criteria regardless
of certification status by the Office of Minority and Women-Owned Business Enterprises 
(OMWBE). These results indicated an overall disparity index of 56, which is within the
range that indicates the presence of disparity. 
A disparity index of 56, combined with additional information, may be used to support
formation of race- and gender-conscious DBE contracting efforts. 
The disparity indices for several groups were parsed. Many groups had indices between
8 and 42. It was reported that the overall index factor of 96 and construction contract index
of 113 for African-American MBEs is skewed by the inclusion of a single construction firm
that, although an MBE, does not qualify as a DBE. WBEs, which include only businesses
owned by Caucasian women, were the only group demonstrated to be above parity with
an overall index of 113 and a construction contract index of 134. 
The  disparity study included comments by consultants, sub-consultants, and
subcontractors that indicate MBEs, WBEs, DBEs, and small businesses are sometimes

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PORT COMMISSION MEETING MINUTES                    Page 8 of 9 
TUESDAY, DECEMBER 2, 2014 
included in proposals to demonstrate diversity but never receive the promised work or
are not promptly paid by their prime contractors. 
The role of the OSR in developing solutions to contracting disparity through community
outreach and development of training and capacity-building programs was discussed, as
was review of Resolution No. 3618 pertaining to small business. Recommendations may
be offered as early as the first quarter of 2015. 
Ensuing discussion included the tendency for a few firms to do the majority of work among DBE
groups, assurances against fraud in the use of the federally defined DBE designation, and the low
percentage of Port construction projects receiving federal funds. The disparity study under discussion
addressed all non-ACDBE Port contracting, not only contracting that included federal funding. 
King County's Small Contractor and Supplier certification program and its relationship to Port
contracting with local businesses was discussed. Commissioners commented on the need for a
cultural shift to ensure the success of the Port's small and minority business programs. The 
relationship of airport programs to the broader range of Port-wide contracting was considered. 
Commissioners urged staff to move quickly to institute next steps and bring detailed
recommendations for future equity efforts. 
7b.  Scope and Budget Update on the Airport's International Arrivals Facility (IAF) Program. 
Presentation document(s) included a Commission agenda memorandum and presentation slides. 
Presenter(s): Frederick Robinson, Program Leader, Aviation Project Management Group; Michael Ehl,
Director, Aviation Operations; and Wayne Grotheer, Director, Aviation Project Management Group. 
The presentation on the scope and budget of the International Arrivals Facility included the
following key information: 
The current Federal Inspection Services (FIS) facility, designed and built in 1973 for a
maximum capacity of 900 passengers per hour, is no longer adequate for the needs of
the rapidly growing international air service at Seattle-Tacoma International Airport and
must be replaced with a modern International Arrivals Facility (IAF). 
Planning efforts for a new facility are well underway, but no official design work has begun. 
Reprioritized program metrics, potential value-engineering scope changes, and program
adjustments for compatibility with the Sustainable Airport Master Plan (SAMP) were
presented.  Metrics are categorized as capacity, customer service, competitive
advantage, and community image. 
Cost and schedule validation will follow engagement of a design-build team. At this point,
formal design will commence and a guaranteed maximum price will be proposed. 
The IAF's current cost estimate is $596 million, including $100 million in reserves and 
contingency. There are a number of possible strategies to contain or reduce this cost
involving various trade-offs. 

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PORT COMMISSION MEETING MINUTES                    Page 9 of 9 
TUESDAY, DECEMBER 2, 2014 
The inevitability of hardstand operations was noted. When there is insufficient gate
capacity, aircraft must be parked in the airfield on a hardstand and passengers and
cargo bused to the terminal. Current and future capacity needs were presented. 
Use of automated passport kiosks and other efficiencies have reduced wait time in the
FIS, which nevertheless remains higher than tolerable for optimal operations. So far this
year, there have been only four cases of holding passengers on board aircraft due to
lack of capacity in the FIS. Cases of holding passengers in the International Corridor are
at 524 and are increasing daily. 
It is hoped that a new facility will reduce minimum connection time from 90 to 75 minutes. 
Competing airports are aiming for minimum connect times as low as 60 minutes. 
Providing the opportunity to expand the one-way bridge into a two-way bridge would
support future expanded circulation flow. The bridge is not being currently constructed
with two-way capacity, but will have the capacity to expand in the future. 
The relationship between the IAF program and the SAMP, which are both in progress and dynamic
due to multiple competing factors, was discussed. 
Future capacity issues, including factors of aircraft size and flight capacity, were noted. Careful
management of the available facilities, operations, and overall Airport space potentially could
postpone the need for another large commercial airport, saving significant regional investment in
the meantime. Concerns noted included the negative impact on capacity in the interest of project
cost savings and the need to balance performance and expenditures, investing only at the
appropriate time. 
The number of gates currently proposed and the assumptions behind early cost estimates were
discussed. Factors affecting improved security screening efficiency were noted. Project location
relative to secured areas and its effect on costs was discussed. 
8.   NEW BUSINESS 
Commissioner Bowman announced a joint meeting between the Ports of Seattle and Tacoma on
December 3, 2014. The public session will begin at 9 a.m. at the Port of Tacoma's Fabulich Center 
to discuss a Seaport Alliance between the two ports. 
9.   ADJOURNMENT 
There being no further business, the regular meeting was adjourned at 4:03 p.m. 
Tom Albro 
Secretary 
Minutes approved: July 14, 2015. 


Minutes of December 2, 2014, proposed for approval on July 14, 2015.