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 SPECIAL MEETING SEPTEMBER 30, 2014 
The Port of Seattle Commission met in a special meeting Tuesday, September 30, 2014, in the
International  Auditorium  at  Seattle-Tacoma  International  Airport,  Seattle,  Washington.
Commissioners Albro, Bowman, Bryant, Creighton, and Gregoire were present. Commissioner
Albro was absent after 3:41 p.m. 
1.   CALL TO ORDER 
The special meeting was called to order at 12:01 p.m. by Courtney Gregoire, Commission Co-
President. 
2.   EXECUTIVE SESSION pursuant to RCW 42.30.110 
The special meeting was immediately recessed to an executive session estimated to last 60 
minutes to discuss matters relating to potential litigation, legal risk, performance of a publicly bid
contract, labor relations strategy, and sale or lease of real estate. 
At 1:05 p.m., the Commission Clerk announced on behalf of the Commission Co-President that the
executive session would be extended until 1:15 p.m. at the earliest to finish consideration of the
matters previously announced. 
Following the executive session, which lasted approximately 75 minutes, the special meeting
reconvened in open public session at 1:21 p.m. 
PLEDGE OF ALLEGIANCE 
3.   SPECIAL ORDERS OF BUSINESS 
ANNOUNCEMENT 
Commissioner Gregoire announced that today was Tay Yoshitani's last day as Port of Seattle Chief
Executive Officer. She commented on several of Mr. Yoshitani's accomplishments as Port CEO,
noting his efforts in the areas of transparency and accountability, small business contracting, social
responsibility, environmental sustainability, navigation of difficult economic times, completion of the
Third Runway, building of Smith Cove Cruise Terminal, opening of a new Rental Car Facility,
extension of light rail to the Airport, and establishment of a nationally recognized Veterans
Fellowship Program. During his tenure, the Port celebrated the Centennials of the Port and
Fishermen's Terminal and the fiftieth anniversary of Shilshole Bay Marina. Mr. Yoshitani presided
over the completion of acquisition of the Eastside Rail Corridor, the doubling of international long-

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PORT COMMISSION MEETING MINUTES                   Page 2 of 18 
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haul flights at Seattle-Tacoma International Airport, and successful efforts to address inequities
caused by the federal Harbor Maintenance Tax. Commissioner Gregoire thanked Mr. Yoshitani for
his service on behalf of the Commission. Commissioners acknowledged Mr. Yoshitani's service
and accomplishments. Mr. Yoshitani will be succeeded as CEO by Ted Fick, who takes over the
role on October 1.  Mr. Yoshitani expressed his appreciation to the Port Commission and
acknowledged the efforts of the many team members who contributed to the accomplishments
achieved during his tenure. 
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.] 
To accommodate public testimony, agenda item 4c was removed from the Unanimous Consent
Calendar for separate discussion. The minutes of the special meeting of August 5, 2014, were
removed from agenda item 4a prior to convening and were not approved at this time. 
4a.  Approval of the minutes of the regular meeting of August 5 and the special meetings of
August 6, 11, and 13, 2014. [special meeting of August 5, 2014, removed] 
4b.  Authorization for the Chief Executive Officer to execute two professional services
indefinite delivery, indefinite quantity contracts for Project Management Services in the
amount of $2,500,000 per contract for a total of $5,000,000. Each contract will have a
duration of one year with two one-year options and include a three-year ordering
period in support of upcoming capital improvement projects. There is no budget
request associated with this authorization. 
Request document(s) provided by Wayne Grotheer, Director, Aviation Project Management Group: 
Commission agenda memorandum dated September 22, 2014. 
As noted above, the following agenda item  
4c.  Authorization for the Chief Executive Officer to execute a Fifth Amendment to the lease
with Seaview Boatyard West Inc. at Shilshole Bay Marina to expand the premises by
10,000 square feet and to add two five-year options to renew. [temporarily postponed] 
was temporarily postponed. 
4d.  Authorization for the Chief Executive Officer to increase the project budget for the
Known Crew Member Employee Bypass at Seattle-Tacoma International Airport by
$130,000 for a new total estimated project cost of $780,000 (CIP #C800576). 
Request document(s) provided by Wendy Reiter, Director, Security and Emergency Preparedness, 
and Wayne Grotheer, Director, Aviation Project Management Group: 
Commission agenda memorandum dated September 22, 2014. 

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TUESDAY, SEPTEMBER 30, 2014 
4e.  Authorization for the Chief Executive Officer to enter into a two year Agreement with
the Muckleshoot Indian Tribe to assist with permit concurrence and coordination of
Treaty fishing access with cargo and cruise vessels serving Port of Seattle berthing
facilities in the Duwamish Waterway, East Waterway, West Waterway, and Elliott Bay. 
Request document(s) provided by Michael McLaughlin, Director, Cruise and Maritime Operations: 
Commission agenda memorandum dated September 10, 2014. 
September 19, 2014, Draft of Muckleshoot Indian Tribe and Port of Seattle Vessel
Coordination Program Elements, 2014 and 2015 Treaty Fishing. 
Motion for approval of consent items 4a, 4b, 4d, and 4e  Creighton 
Second  Albro 
Motion carried by the following vote: 
In Favor: Albro, Bowman, Bryant, Creighton, Gregoire (5) 

5.   PUBLIC TESTIMONY 
Public comment was received from the following individual(s): 
Stephen Sands, owner of Sands Marine doing business at Shilshole Bay Marina.
Mr. Sands spoke in opposition to the proposed lease amendment and premises
expansion for Seaview Boatyard at Shilshole Bay Marina described in agenda item 4c.
He claimed the area for his business was being appropriated for use by Seaview
Boatyard unnecessarily, dismissively, and without his consultation. Mr. Sands asked
that Seaview not be allowed to install a sub-meter for his electricity and to charge Sands
Marine directly for its electricity use. 
Mark Hiraiwa, owner of Auxiliary Engine Service doing business at Shilshole Bay Marina.
Mr. Hiraiwa spoke in opposition to the lease amendment described in agenda item 4c.
He noted several relocations of his business since the 1980s and claimed his current
relocation to accommodate the lease amendment was being executed without his
consultation and that Seaview Boatyard would be responsible for moving his facility
itself. He expressed doubt that the move would be executed professionally. 
Mark Bouffiou, retired vessel captain and former partner at Seaview Boatyard.
Mr. Bouffiou commented on his concern that the lease amendment in agenda item 4c
was being executed without consultation of all the parties affected. He claimed lease
renewals for Seaview Boatyard had been executed early in the past, with the effect of
shutting out competition, and for very long terms that effectively amount to giving what
he called a lifetime lease. 
Dane Bahr, a boat owner and client of Seaview Boatyard. Regarding agenda item 4c,
Mr. Bahr stated his concern that with installation of the new, larger travel lift proposed by
Seaview will result in inflated hauling cost for recreational boaters.  He claimed
Seaview's relocation expense would be passedon to boaters in increased moorage
costs. 
Dean Kloudt, a long-term moorage tenant at Shilshole Bay Marina and client of Seaview
Boatyard. Regarding agenda item 4c, Mr. Kloudt expressed his concern over the size of

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Seaview's proposed new travel lift, whichis very large compared to the size of his
vessel. He stated that there are sufficient facilities on the Ship Canal to handle vessels
of the size targeted by a larger travel lift, and that the ramifications of Seaview's
expansion and larger equipment would be detrimental and suggested an environmental
impact statement would be necessary. 
At the request of Commissioner Bryant, the following agenda item  
4c.  Authorization for the Chief Executive Officer to execute a Fifth Amendment to the lease
with Seaview Boatyard West Inc. at Shilshole Bay Marina to expand the premises by
10,000 square feet and to add two five-year options to renew. [laid on the table] 
was laid on the table without objection. 
Public testimony continued as follows: 
John Burreson, owner of Highliner Public House at Fishermen's Terminal. Mr. Burreson
submitted written comments requesting assistance from the Port regarding business
interruption posed by the City of Seattle's proposed closure of the Nickerson
Street/Emerson Street Overpass above Fifteenth Avenue West for ten weeks for repairs.
A copy of Mr. Burreson's statement is, by reference, made a part of these minutes, is
marked Exhibit A, and is available for review in Port offices. 
John Spelt and Paula Cassidy, owners of Wild Salmon Seafood Market at Fishermen's
Terminal. Mr. Spelt and Ms. Cassidy submitted written comments requesting assistance
from the Port regarding business interruption posed by the City of Seattle's proposed
closure of the Nickerson Street/Emerson Street Overpass above Fifteenth Avenue West
for ten weeks for repairs. A copy of their statement is, by reference, made a part of
these minutes, is marked Exhibit B, and is available for review in Port offices. 
Nicole Ferrer, Executive Director of Apprenticeship and Non-Traditional Employment for
Women (ANEW). With respect to agenda item 7c, Ms. Ferrer commented in favor of
continued involvement by the Port in workforce development opportunities. 
Charlie James, affiliated with the Martin Luther King County Institute.  Mr. James
commented on perceived racial discrimination in the administration of the Airport's
Airport Concessions Disadvantaged Business Enterprise (ACDBE) program and plans
for the Airport Dining and Retail program. 
Hayward Evans, Director of Shanghai International Trading and affiliated with the
Community Coalition for Contracts and Jobs. Mr. Evans commented on what he said
were violations of Federal Aviation Administration and U.S. Department of
Transportation disadvantaged business enterprise programs in the Airport's ACDBE
program.  He requested new reporting standards on new disadvantaged business
enterprises at the Airport and establishment of a community advisory council. 
Lourdes Barredo, employed at Dish D'Lish and affiliated with Unite Here Local 8.
Ms. Barredo commented in favor of job security for workers at the Airport. 
Sandy Sun, owner of Manchu Wok. Ms. Sun commented on the lack of follow-through
from the Commission's motion of September 11, 2012, regarding relief for Airport
Concessions Disadvantaged Business Enterprises and other small business at the
Airport. She commented on what she described as racially offensive implications in the

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conversion of her restaurant space to a personal services or massage use in the
redevelopment of the Airport's Dining and Retail program. . 
David Fukuhara, Managing Partner for Concourse Concessions, which operates multiple
concessions spaces at the Airport. Mr. Fukuhara commented on the treatment of small
and minority businesses by the Airport Dining and Retail program and complained that
Port staff refuses to implement the Commission's September 11, 2012, motion regarding
relief for small and disadvantaged businesses at the Airport and that rent and lease
structures and worker retention policies are inequitable. 
Jerry Whitsett, owner of Sea-Tac Bar Group, operating the Africa Lounge and Mountain
Room Bar on the Airport's Concourse A. Mr. Whitsett commented on apparent 
inequalities in the Airport's treatment of minority and small businesses in the Airport
Dining and Retail program. He commented on what he described as racially offensive
implications in the conversion of his bar space to a personal services or shoe-shine use
in the redevelopment of the program. 
Rod O'Neal, owner of Sea-TacBar Group, operating the Africa Lounge and Mountain
Room Bar on the Airport's Concourse A. Mr. O'Neal commented on perceived lease and
rent inequalities in the Airport's Dining and Retail program. 
The Reverend Dick Gillett, of the Interfaith Economic Justice Coalition. The Rev. Gillett
commented in favor of improved wages, working conditions, and job security for Airport
workers. 
6.   DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
6a.  Authorization for the Chief Executive Officer to execute a contract for Centralized
International Support Services in the Federal Inspection Services facility at the Seattle-
Tacoma International Airport for up to five years for an estimated amount of $8,700,000. 
Request document(s) provided by Michael Ehl, Director, Aviation Operations: 
Commission agenda memorandum dated September 22, 2014. 
Presenter(s): Nick Harrison, Senior Manager, Airport Operations, and Charles Goedkin, Manager,
International Operations. 
The Commission received a presentation that included the following relevant information: 
The Airport's existing Federal Inspection Services (FIS) facility is over 40 years old and 
is too small for current needs. 
The FIS was built in the 1970s, to accommodate two wide-bodied flights at a time.
Today, the noon bank of flights can include 9 to 10 wide-bodied aircraft converging on
the South Satellite (SSAT) facility at a time. This is one of the Airport's largest daily
challenges. 
Since the 2009 recession, international flights into the FIS have increased by 168
percent. The FIS has since added 10 wide-bodied international flights. 
Between July 2004 and July 2014, FIS passenger values have more than doubled, with
up to 1,000 people inside the FIS at a time. 

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The passport control area is designed to hold a maximum of 400 people at a time.
Passenger flow can reach 800 in 10 minutes during peak periods. 
To this point in 2014, the FIS has had to hold passengers inside the building or inside the
aircraft over 400 times, with delays ranging between five to 67 minutes, causing
inconvenience for travelers, airlines, and Airport staff. 
Most of these holds are due to increased traffic, insufficient space in the passport control
area, and deviations from scheduled arrival times during peak periods. 
Once through the passport control area, passengers must wait in long lines to exit the
Customs baggage claim area, taking upwards of 30 minutes to exit the facility. 
Currently, the FIS is staffed by approximately 40 to 60 permanent staff members, with a
support staff of 20 to 25 during peak periods in the summer schedule. 
The international airlines have unanimously requested that the Port of Seattle establish a
unified contract to provide centralized passenger and baggage services. 
The contract will fall under the Port's Quality Jobs Initiative Resolution No. 3694. 
Staff from Centralized International Support Services are needed to maintain operations
in the FIS. All staff on this contract will be considered covered under Resolution No.
3694, with the concomitant higher wages, better benefits, and access to paid time off. 
Motion for approval of item 6a  Albro 
Second  Bowman 
Motion carried by the following vote: 
In Favor: Albro, Bowman, Bryant, Creighton, Gregoire (5) 

6b.  Authorization for the Chief Executive Officer to execute design contracts or service
directives, perform design, conduct environmental review, prepare necessary permit
submittals, and prepare construction bid documents for the replacement of Shilshole
Bay Marina restrooms in the amount of $632,000 of a total estimated project cost of
$5,500,000 (CIP #C800356). [subsequently laid on the table] 

Request  document(s) provided by Tracy McKendry, Senior Manager, Recreational Boating 
Services, and Mark Longridge, Capital Project Manager, Seaport Project Manager: 
Commission agenda memorandum dated September 23, 2014. 
Presentation slides. 

Presenter(s): Ms. McKendry and Mr. Longridge. 
The Commission received a presentation that included the following relevant information: 
Shilshole Bay Marina, built in 1962, is the largest marina in Seattle, with over 1,400
moorage slips and an occupancy rate of 95 percent that has remained stable over the
last three years. The marina includes approximately 600 live-aboards as permanent
residents. 

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TUESDAY, SEPTEMBER 30, 2014 
The marina is one of the Port of Seattle's most profitable, generating a gross income of
$5.6 million annually, with moorage as the main revenue component, supplementedby 
dry moorage, live-aboard fees, bike lockers, kayak storage, and miscellaneous sources. 
Five tenant services facilities, incorporating restrooms, laundry rooms, and showers,
were built as part of the original marina construction. They are currently the only
remaining component of the original project. 
The facilities are now 52 years old and receive continual use, with an estimated 100,000
visits to each restroom annually, and 98 percent of marina tenants and residents using
the facilities on a regular basis. 
There are rising maintenance issues associated with failing pipes, drains, tilework,
lighting issues, heaters, and other repairs. Maintenance projects are frequently subjected
to environmental abatement due to the possibility of encountering regulated materials
commonly used in building projects in the 1960s. 
The facilities do not currently include modern energy-efficiency and resource-saving
features. The new facilities will incorporate modern energy efficiency standards and
include many features such as recycled materials, use of alternative energy, and
creative stormwater treatment. 
Currently, ADA-accessible restrooms and showers are limited. When these are out of
service due to maintenance issues, there are only limited options for people who need
accessible facilities. 
The facilities' current 1960s design aesthetic is industrial and unwelcoming. In order to
remain competitive, the marina's new facility design will be more "home-like" and
welcoming. 
During the past year, a team of Port employees has examined the marina site plan
created in 2006, with the stated goal of updating the plan to integrate new shoreline
regulations and layout features and uses of uplands areas. 
The team determined that two larger facilities and one smaller facility might be more
beneficial than the replacement of five individual facilities. 
Positives include better preservation of existing parking spaces due to building
consolidation, cost savings and construction efficiencies, better security for individual
customers, and more integration for the marina community. 
The facility at the south end of the marina would be rebuilt, and the other four
consolidated into two facilities to serve the north and south ends of the marina. 
Each of these new buildings as currently planned would be approximately 3,200 square
feet, incorporating showers, restrooms,  and laundry rooms. The team is also
investigating the possibility of including other tenant services such as storage and
mailrooms. 
The project consists of two phases. The first will be the construction of the new buildings.
The second will be the demolition of the existing structures. Completion of these phases
is estimated to take five years. 
The total project cost, estimated to be $5.5 million, is expected to be funded by the tax levy. 
In response to Commission inquiry as to the funding of the project with the tax levy, it was reported
that Shilshole Bay Marina generates funds to cover other, less profitable properties in the Real
Estate portfolio and maintains an outstanding capital debt of $34 million. It was reported that

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TUESDAY, SEPTEMBER 30, 2014 
the project staff is not comfortable requiring the marina tenants and residents to carry the
project cost through moorage hikes and hope to keep the marina competitive in an economy
still recovering from recession.  Occupancy will diminish significantly if the rates are pushed
too high. Nevertheless, Shilshole is slowly raising its rates and investigating new revenue
resources, such as seasonal dry-mooring in parking lots. Funding alternatives to the tax levy
have not yet been investigated. 
Commissioners expressed a lack of enthusiasm for the current funding plan, and the Real
Estate Division was asked to re-evaluate its portfolio and funding alternatives. 
Further consideration of agenda item 6b was laid on the table without objection. 
6c.  Authorization for the Chief Executive Officer to execute the following agreements
between the Port and LDC Washington LLC, substantially as drafted: (1) a new 20-year
lease with two 10-year extension options and (2) a Termination Agreement and
Release. 

Request  document(s) provided by Michael Burke, Director, Seaport Leasing and Asset
Management, and Jasmin Contreras, Property Manager, Seaport Leasing and Asset Management: 
Commission agenda memorandum dated September 25, 2014. 
Draft of Lease Agreement between Port of Seattle and LDC Washington LLC. 
Termination Agreement and Release. 
Standstill and Tolling Agreement. 
Presenter(s): Mr. Burke and Ms. Contreras. 
The Commission received a presentation that included the following relevant information: 
The grain terminal at Terminal 86 has been in operation for 46 years under the current
lease agreement, dated March 26, 1968. 
In 2000, the lease was assigned from Cargill to the Louis Dreyfus Corporation. In 2010,
Louis Dreyfus assigned the lease to LDC Washington LLC, a company subsidiary. 
LDC has been an outstanding tenant, stabilizing a wildly varying grain market. The Port
of Seattle has processed high grain volumes since the start of the lease in 2000. 
The current lease expires in 2015, with one remaining five-year option to extend the term
of agreement through November 15, 2020. 
The proposed lease between the Port and LDC would extend for 20 years, with two 10-
year renewal options. 
This extension will give the Port long-term use of the facility and long-term increased
revenue and will clarify issues concerning future investments and help keep cargo
moving through the Port. 
The minimum annual required rent provision to the Port will be $1.8 million. 
Base rent and minimum rent will increase according to the Consumer Price Index, not to
exceed 10 percent, every five years. 

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Tonnage fees will increase by 10 percent in the first year, and stay flat for seven years,
and then include a 2-percent increase every year thereafter. 
The tonnage fee will include a discount incentive. 
The new lease provides better-defined property insurance language with regard to
responsibility for property insurance deductible. 
The Port will release LDC from liability related to past insurance claims. 
LDC will be responsible for all maintenance, repair, and capital improvements at the
facility. 
In anticipation of the new lease, LDC is already making improvements to the facility,
including upgrading the elevator. 
Motion for approval of item 6c  Creighton 
Second  Bryant 
Motion carried by the following vote: 
In Favor: Albro, Bowman, Bryant, Creighton, Gregoire (5) 

7.   STAFF BRIEFINGS 
7a.  Briefing on the Port Liability Insurance Renewal for the Policy Year beginning on
October 1, 2014. 
Presentation  document(s) provided by Jeff Hollingsworth, Manager, Risk Management
Department: 
Commission agenda memorandum dated September 10, 2014. 
Presentation slides. 
Presenter(s): Mr. Hollingsworth. 
The Commission received a presentation that included the following relevant information: 
The Port of Seattle's current liability insurance program expires on September 30, 2014.
The Port is in the process of finalizing the purchase of coverage for the policy year
beginning October 1, 2014. 
Excluding property insurance, the primary insurance policies to be renewed include
Airport Operations, General Liability, Non-Aviation, Police Professional, Public Official's,
Fiduciary, Employment Practices, Foreign, Vessels, Bonds, and Employee Dishonesty
(Crime). 
Excess Workers Compensation liability will not be purchased, due to the Port currently
being self-insured for that liability. 
The aggregate cost for the expiring 2013-2014 premium stands at $801,000. 
The liability insurance premium has risen in comparison with the Port's revenue stream. 
Retentions and limits are projected to remain stable in 2014-2015. The Port has
negotiated a few minor changes with some carriers. 
The non-aviation coverage deductible will decrease from $1 million to $750,000. 

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TUESDAY, SEPTEMBER 30, 2014 
The Terrorism Risk and Insurance Act (TRIA) is currently under Congressional review
prior to its December 31, 2014, expiration date. The Port is currently self-insured for
workers compensation and will not be immediately impacted if TRIA is not renewed. 
The Port purchases terrorism coverage for exposures that are non-aviation related, so
the failure of TRIA to pass in Congress could impact Port renewals in 2016. 
Airport limits will remain at $500 million in the coming year. The Port will not purchase
aviation terrorism coverage. 
Cyber Liability coverage has not yet been purchased and will not be renewed as part of
the new year package. Risk Management is currently working with ICT to examine
options for future purchase. 
Cost options range between $60,000 and $70,000. 
Cyber threats are increasingly common worldwide. The Port has the option of including
King County and Washington State in its Cyber Liability discussion, and the option of
participating in the broader, state-wide cyber terrorism network. 
Excluding Cyber Liability, the 2014-2015 insurance renewal estimate is $805,000 to
$815,000, slightly higher than last year's budget estimate. Including Cyber Liability, the
estimate rises to $870,000 to $885,000. 
In response to Commission inquiry, it was reported that the Risk Management Department will
examine the draft of the proposed Mutual Aid Agreement with other port authorities to determine
the agreement's affect on Port liability coverage. 
In response to Commission inquiry regarding Cyber Liability's responsibilityto address online
financial losses in addition to personal information risks, the Port's Crime policy would currently
cover some of those exposures, but traditional policies are excluding coverage if the loss occurs on
a network and it would be more efficient to examine the Crime and Cyber Liability policies in
tandem. 
7b.  2014 Second Quarter Capital Improvement Projects Report. 
Presentation document(s) provided by Ralph Graves, Managing Director, Capital Development: 
Commission agenda memorandum dated September 23, 2014. 
Presentation slides. 
Capital Improvement Projects: Second Quarter Report 2014. 
Presenter(s): Mr. Graves. 
The Commission received a presentation that included the following relevant information: 
Including Capital Improvement Projects and Corporate Projects (mostly ICT in nature),
there is a total of 99 projects in the report, with 55 within or ahead of target schedule and
budget, and four substantially completed. 
There are 39 projects experiencing variances in schedule or budget, with four new
reportable variances for the second quarter. 
There are five projects experiencing both target schedule and budget variances, with no
new reportable variances for the second quarter. 

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TUESDAY, SEPTEMBER 30, 2014 
The Commission expressed some concern over the high incidence of budget and
schedule variances in the reporting period. 
The most difficult element for Port of Seattle projects is staying on schedule during the
design phase due to the tradeoff between adjusting to changing circumstances during
design and staying on schedule. 
CDD is always trying to improve project performance and holding contractors to
schedule and will work to identify project targets and assist the Port Commission in
understanding the reasons behind the statistics to aid benchmarking. 
Aviation'sGrease Interceptor Augmentation project experienced design revisions just
before going to bid, causing a four-month delay in project completion, now scheduled for
March 2015. 
The North Satellite (NSAT) STS Ceiling Leak Repair project was commenced as part of
the Seattle-Tacoma International Airport's annual Airfield Pavement Replacement
project, but the work was so specialized that the project received only one bid. Despite
restructuring, the project still received only one bid. 
The Long-Term Cell Phone Lot is currently receiving a high level of use. Work is
continuing on the cell lot's permanent access control. 
Though substantially completed, work continues on the replacement of passenger
loading bridges B4 and S7. 
The Terminal 91 Lighting project's new fixture installation started later than planned. 
The Shilshole Bay Marina Seawall's in-water work was delayed for one year due to the
project schedule missing the extreme summer tides. 
The Pier 69 Carpet Replacement is currently scheduled for October 2014 due to the
chosen material and pattern not being readily available. 
The Argo Roadway project is the final element of a 20-year series of projects to improve
back access to Argo Yard from Harbor Island. Anticipated completion of elements I and
II of the Argo Roadway project will take place approximately one quarter later than
planned due to expected permitting and coordination delays. The contract has been
awarded and the contractor is mobilizing for work. 
One Corporate project, the ID Badge System Replacement, reports a schedule variance.
Resource availability and system complexity have delayed completion. The new system
implementation is planned for October 2014. 
To this date, the Port contracts 27.5 percent of its project aggregate to small businesses. 
It is below its target in some areas and above it in others. 
In response to Commission concerns regarding performance measures, given that the basic
statistics regarding scheduling and budgeting have not changed for five years, CDD will work to
identify project targets and assist the Commission in understanding the reasons behind the
statistics to aid benchmarking. 
The Commission expressed concerns regarding the reporting of small business contracting
performance as an aggregate, without distinction between small business participation in large or
small projects, and without acknowledgement of the differences between project budgets, targets, 
and manpower. They requested future reports account for these differences. 

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PORT COMMISSION MEETING MINUTES                  Page 12 of 18 
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The Commission inquired as to Alaska Air Group's concurrence in NorthSTAR scope and budget,
and it was noted that procurement of a general contractor for the North Satellite expansion project
is underway and an update on the NorthSTAR program is scheduled in two weeks. 
7c.  Proposed Workforce Development Strategy Expansion. 
Presentation document(s) provided by Luis Navarro, Director, Office of Social Responsibility: 
Commission agenda memorandum dated September 12, 2014. 
Presentation slides. 
Resolution No. 3694. 
Motion of the Port of Seattle Commission Increasing Workforce Development and
Career Opportunities Activities as Amended. 
Presenter(s):  Mr. Navarro and Jim Torrens, Program Manager, Insight Center for Community
Economic Development. 
The Commission received a presentation that included the following relevant information: 
The proposed workforce development strategy expansion is part of the Port's Century
Agenda, which advocates small business growth and workforce development in the Port
and related entities through the Quality Jobs Initiative, Port Commission motion, and
Resolution No. 3694 adopted in July 2014. 
The Office of Social Responsibility (OSR) interprets workforce development as an
"essential component of community economic development, including and going beyond
employment and training servicespublic and private sector policies and programs by
which industries and employers are provided access to qualified workers, job seekers
are prepared for employment and workers are provided the skills and resources needed
for their advancement." 
One third, or $138 billion of Washington State's $405 billion gross domesticproduct
depends in some way on the marine terminal activities of the Ports of Seattle and
Tacoma. By contrast, dollar value of Port-related jobs and indirect spending is $4 billion. 
The Port has a wider role as a convener, initiating and organizing meetings and actions
among economic development actors, along with its role as a direct investor in some
sectors, while remaining within its legislative parameters. It can use these roles, and the
collaboration between entities, to achieve its workforce development goals. 
The Port's investmentsin workforce development provide a platform for co-investment
by others in the Port and Port-related industries. 
The Port's current workforce development strategyincludes the Port Jobs Contract,
which supports jobs at the Seattle-Tacoma International Airport, and the Airport
University, along with the Apprenticeship Opportunity Project; engineer endorsement
training in the fishing industry; the Youth Maritime Career Support at the Center for
Wooden Boats; and research projects in the construction industry in collaboration with
the City of Seattle. 
Current strategy also includes increased apprenticeship utilization, especially for women
and minorities; high school and college internships at the Port, veterans fellowships and
partnering with other workforce programs. 

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The Insight Center for Community Economic Development has conducted research on
Seattle's local and regional workforcedevelopment landscape and reviewed the Port's
mission as an engine of economic development. 
Insight's recommendations advocate following the Commission's guidance,the Sector
Approach to career pathways, the use of the Port's leverage as an anchor institution,
providing contracts for job access and career services in Port-related industries, the
incorporation of partnership support in request for proposal structures, and entering
partnerships with other stakeholders in Port-related industries 
Insight recommends the use of three types of contract services. The first contract will
provide a labor market analysis, career pathways mapping, and an employment equity
analysis for the Port and Port-related industries. Outputs include reports on labor market
demand, career pathways, and employment disparities in Port-related industries. The
contract will identify existing services and gaps in those services. 
The estimated annual cost is between $75,000 and $125,000, with no increase
recommended after Year 3. 
The second contract will be for Job Access and Career Advancement Services, to
provide sector-specific job access and career advancement in Port-related industries, at
a total estimated annual cost between $2,099,000 and $2,334,000. 
Projected outputs and outcomes include 1,495 job placements per year; and 7,900
people provided services including job search preparation and assistance and jobreadiness
training, career navigation services and career advancement training, preapprenticeship
training and apprenticeship completion services. 
The anticipated outputs and outcomes for the Airport sector include 7,400 participants,
1,200 job placements, and 170 participants in career advancement training, at an annual
estimated cost between $1.2 million and $1.3 million. 
It is recommended that the current Airport job access services continue. Career
advancement services should be expanded to include career navigation scholarships
and additional training opportunities. 
Construction sector outputs and outcomes include 250 participants in pre-apprenticeship
services, 135 apprenticeship placement, 135 apprentices receiving apprenticeship
completion services, and 150 participants in financial education classes, at an estimated
annual cost between $360,000 and $420,000. 
Apprenticeship completion services are highlighted due to the sector's high apprentice
drop-out rate, especially among women and minorities. 
Maritime sector outputs and outcomes include 250 job-seekers served, 160 job
placements, 50 participants in bridge-level training per year, and three contextualized
bridge program classes per year, at an estimated cost between $350,000 and $375,000
for Years 1-3, and $375,000 to $400,000 for Years 4-10. 
It is recommended that a new set of services be created around the Seaport to aid
maritime  job seekers to both get entry-level jobs and access training for career
advancement. 
The third contract will evaluate the effectiveness and impact of the Port workforce
development  strategy, outputs to include an annual report on direct outputs and
outcomes of Port contracts for job access and career advancement services; an
evaluation of resulting changes in workforce development, employer practices and

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TUESDAY, SEPTEMBER 30, 2014 
related policy; and a dashboard of outcomes from job access and career advancement
services. 
Potential workforce development actions by the Port include informing and shaping the
Labor Market and Related Analysis, additional internships for high school students and
beyond, the promotion of career pathways and employment equity, the alignment of
training with needs of businesses and workers, the maximization of job quality with the
Port and other regional stakeholders, and the development of a dedicated funding
stream for workforce development efforts, in the amount of $2 million per year, indexed
to inflation. 
The current cost of workforce development efforts  for the Budget Year 2014 is
$1,066,540, with a 10 year forecast of $10,665,400. 
With implementation of Insight's recommendations, the Year 1 cost is projected to be
$2,459,000, with a 10 year forecast of $24,765,000. 
Important dates in the Workforce Development Strategy Expansion timeline include the
formal request for Commission authorization on October 28, 2014, the extension of the
Port Jobs Contract in the First Quarter 2015, and the start of the new contracts in the
Second Quarter of 2015. 
The Commission encouraged further collaboration with other King County agencies, such as
schools and county and state government, to further workforce development and career pathways 
for workers.  Examination of the state's broader economy may identify opportunities for growth in
which the Port could play a role. It was noted that the Port has a responsibility to ensure that it is
working effectively with its partners to exploit any opportunity to provide quality jobs to surrounding
communities. 
In response to Commission inquiry regarding evaluation of the effectiveness of Port workforce
development strategy, a consultant is currently analyzing whether evaluation is best performed inhouse
by staff, by a contracted third party, or through a combination of the two. 
Commissioner Albro was absent after 3:41 p.m. 
7d.  2015 Corporate and CDD Budgets Briefing. 
Presentation document(s) provided by Dan Thomas, Chief Financial & Administrative Officer;
Ralph Graves, Managing Director, Capital Development Division; and Michael Tong, Corporate
Budget Manager : 
Commission agenda memorandum dated September 11, 2014. 
Presentation slides. 
Presenter(s): Mr. Thomas, Mr. Graves, and Mr. Tong. 
Corporate and Capital Development Division capital budgets were not included in this presentation
due to unforeseen circumstances and were made available to the Commission under separate
cover. The Commission received a presentation that included the following relevant information: 
There has been an overall increase of 0.8 percent in the 2015 budget as compared to 2014. 

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TUESDAY, SEPTEMBER 30, 2014 
The net baseline budget increase for 2015 is 2.3 percent. 
There is a 2015 net reduction of 1.3 full-time-equivalent positions. 
The 2015 Corporate Preliminary Budget is $81,267,000 compared to the 2014 budget of 
$80,637,000, representing a 2.3 percent increase. 
2015 new budget additions amount to $500,924,000. 
Funds to implement Resolution No. 3694, and the Internal Audit Department's additional
funding for contracting subject matter experts are both covered by the $100,000 increase
in Port of Seattle-wide Contingency. 
Two new FTEs, a cyber-security engineer and a cyber-network engineer, are proposed 
in ICT's budget, to accommodate the Seattle-Tacoma International Airport's growth. 
The total Corporate budget payroll expense for the 2014 budget is $59,992,000, 1.9
percent below the 2015 payroll expenses of $61,112,000. 
Total operating revenue for 2014 stands at $155 million, with a forecast of $269 million.
The 2015 budget for total operating revenue stands at $340 million, a 119.1 percent
increase. 
Most Corporate departments are experiencing budget reductions compared to 2014, due
to three factors: 2014 one-time expense items, the elimination of one FTE each in the
Executive Office and the Legal Department, and budget transfers. 
The Commission Office budget may experience refinements that will be presented at the
next briefing. 
The ICT 2015 Corporate budget is $21,435,000. The majority of this is due to labor
costs, which stand at $13.7 million in 2015, with $4 million being spent on software
maintenance, $1 million on hardware maintenance, and miscellaneous other payments
and network costs. 
The 2014 budget includes 453.4 Corporate FTEs, a net addition of 1.5 from the baseline
of 451.9. With the proposed elimination of three FTEs over two years, the proposed
FTEs for 2015 stand at 450.6. 
Potential Corporate budget additions, not currently included in the preliminary budget
beyond baseline amounts, include funding to the Office of Social Responsibility and
Public Affairs for the expansion of the Workforce Development and Tourism programs,
and an additional Internal Audit FTE for a construction auditor, subject to an Audit
Committee review and recommendation. 
The proposed expansion of the Tourism program includes $50,000 in grant funding to
community applicants to promote statewide tourism; $500,000 in outreach to existing
and new international markets, and to develop cruise workshops for local business
dealing with the cruise industry; and $75,000 as a contribution to the Washington
Tourism Alliance. 
The proposed expansion of the workforce development program includes $1.7 million to
fund the first year of a multi-year contract for expanded services in the Aviation,
Maritime, and Construction sectors, and $34,000 to fund expanded internships and other
internal Port programs. 
The proposed program expansions represent significant increases to baseline budgets. 
Priority CDD goals include timely, within-budget project deliveries; operating division
support beyond projects; providing contracting services; emergency preparedness;

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PORT COMMISSION MEETING MINUTES                  Page 16 of 18 
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developing the talent, capabilities, motivation, and well-being of CDD employees, and
ensuring that Port staff and contractor personnel work safely. 
The CDD total salaries and benefits 2014 budget stands at $35,156,665, with a year-end
forecast of an additional $33,785,162. The 2015 budget includes $37,868,837 in salaries
and benefits. 
The total CDD budget before capital charges stands at $46,134,430 in 2014, with a yearend
forecast of $43,380,765 and a 2015 budget of $50,612,167. 
The CDD 2014 total operating budget stands at $17,000,114, with a year-end forecast of
$15,391,009 and a 2015 forecast of $18,194,210. 
The Total 2015 FTEs in CDD stand at 10.0. 
The Aviation Division impact on 2015 expense projects is $5,268,311. The Seaport
impact is $378,390 and Real Estate is $1,066,048, with a CDD total of $6,712,749. 
In response to Commission inquiry regarding the reason the Airport is not carrying more of the cost
of technology-related spending, given that the Airport is the cuase of a large portion of such
spending, ICT manages these costs throughout the entire Port, including the Airport. 
In response to Commission inquiry, the preliminary analysis indicates that the Port can fund
program expansions and cover upcoming transportation obligations without raising the tax levy. A
briefing will be held within a few weeks to discuss the levy and the plan of finance and to detail
significant numbers. 
In response to Commission inquiry regarding future environmental liabilities, especially the Lower
Duwamish Cleanup effort, staff are working closely with the Environmental Team to monitor both
immediate and potential liabilities and incorporate them into the funding analysis. 
7e.  Airport Dining and Retail Leasing Criteria. 
Presentation document(s) provided by James R. Schone, Director, Aviation Business
Development, and Deanna Zachrisson, Business Leader, Airport Dining and Retail : 
Commission agenda memorandum dated September 25, 2014. 
Presentation slides. 
Presenter(s): Ms. Zachrisson. 
The Commission received a presentation that included the following relevant information: 
The Seattle-Tacoma International Airport Dining and Retail master planning process 
began in 2012, with the commencement of sales, employment and investment forecasts.
A briefing on the investment forecast will be presented in October 2014. 
Airport Dining and Retail is an essential component in Airport redevelopment, in
maintaining the Airport's competitive edge, maintaining its revenue stream, and creating
quality jobs. 
The Airport is currently ranked 22nd in terms of sales per enplanement (SPE) among
airports nation-wide. Airport redevelopment and revitalization are essential for improving
the Airport's status and increasing its SPE. 

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TUESDAY, SEPTEMBER 30, 2014 
The Airport Dining and Retail program currently generates nearly $200 million in annual
sales and supports more than 1,600 Airport jobs. It contributes $40 million in Port of
Seattle revenue and is the second largest source of non-aeronautical revenue. 
Tenants do not pay rent based on square footage but on what they're able to produce
with their units. 
Leases for 90 percent of the Airport's 92 restaurant, retail, and personal services
locations will expire between 2015 and 2017. Sixty of those units are prime operators
such as Host or Hudson. 
The expirations will advance in three staggered phases: Phase I (2014-2016) includes 
early lease returns; Phase II (2017-2018) includes extended leases and new leases;
Phase III (2019-2024) includes new leases and newly built units associated with the
North Satellite (NSAT) and Central Terminal expansions. 
The following drivers will guide phasing plan decisions: the necessity of meeting
passenger needs in every area of the Airport; the need to maintain service during
infrastructure and tenant unit construction, and the need to execute the future
redevelopment program with an optimal mix of offerings in an effective use of space. 
Some underperforming units will be returned early by as much as two years for
redevelopment to better serve current passenger needs and equipment and
infrastructure repair and upgrading. 
On-time expirations will take place when the new leasing plan coincides with the lease's
actual expiration date. 
Extended operations under current leases will apply to units that must stay in operation
past their lease expiration dates, either under month-to-month lease holdover provisions
or through lease extensions, due to the need to maintain customer service among
multiple expirations and Airport redevelopment. These extensions will pend completion
of construction and completed competitive processes. 
Prime operators will be included in a new lease in consideration of early returned units
and additional investment, for less than a full-term lease. 
Phasing of expirations is very complex due to the interconnectedness of all the units and
other Airport projects, and the planned new units being constructed as part of the
NorthSTAR program.
Anticipated Commission actions include authorization of design for Phase I Infrastructure
on October 28, the review of the leasing plan and new request for proposals in
December 2014, and authorizations of construction, personal services, food &
beverages and specialty retail in 2015. 
Phasing criteria presented are not necessarily considered objective enough for
Commission support and further clarification and discussion was requested. 
In response to Commission inquiry, underperforming units are identified via comparison between
similar units' sales per square foot. 
In response to Commission inquiry regarding the Port's plans to balance revenue with other
program goals, staff will need to examine the unit's concept as well as passenger opinion. A unit's
revenue stream is a good indicator of its popularity among passengers; underperforming units are
those that do not generate revenue. 

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TUESDAY, SEPTEMBER 30, 2014 
8.   ADDITIONAL NEW BUSINESS 
None.
9.   ADJOURNMENT 
There being no further business, the special meeting was adjourned at 4:54 p.m. 

Tom Albro 
Secretary 
Minutes approved: April 14, 2015. 














Minutes of September 30, 2014, proposed for approval on April 14, 2015.