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Regular Meeting on Mar 27, 2018 12:00pm

Minutes for the Port Of Seattle Commission meeting, held on Mar 27, 2018 12:00pm

                                                                              P.O. Box 1209 
                                                                Seattle, Washington 98111 
                                                                   www.portseattle.org 
                                                                      206.787.3000 
                                         APPROVED MINUTES 
                               COMMISSION REGULAR MEETING MARCH 27, 2018 
                The Port of Seattle Commission met in a regular meeting Tuesday, March 27, 2018, in the
                      International   Auditorium   at   Seattle-Tacoma   International   Airport,   Seattle,   Washington.
                   Commissioners Bowman, Calkins, Felleman, Gregoire, and Steinbrueck were present. 
                       1.    CALL to ORDER 
                    Pursuant to Article IV, Section 8, of the Commission Bylaws, the meeting convened at 11:10 a.m.
                     to conduct an executive session. 
                       2.    EXECUTIVE SESSION pursuant to RCW 42.30.110 
                The notice posted during the executive session included one matter related to legal risk and one
                   matter related to legal risk and performance of a publicly bid contract. The time for reconvening
               was posted as 12:00 noon, in accordance with commission bylaws and the public meeting notice
                    previously published. Following the executive session, which lasted approximately 75 minutes, the
                    public meeting reconvened at 12:28 p.m. Commissioner Gregoire led the flag salute. 
                       3.    APPROVAL of the AGENDA 
                   Without objection, the preliminary agenda was revised to remove item 6g from the Unanimous
                     Consent Calendar for separate discussion and vote and to lay on the table items 6d and 8c. 
                4. EXECUTIVE DIRECTOR'S REPORT 
                Executive Director Steve Metruck previewed items on the day's agenda and made
                  announcements. 
                       5.    PUBLIC COMMENT 
                     Public comment was received from the following individual(s): 
                             Steve Edmiston, Des Moines, regarding impacts on airport communities. Mr. Edmiston
                               submitted written materials, which are attached as minutes Exhibit A. 
                             Debi Wagner, Burien, regarding impacts on airport communities. Ms. Wagner submitted
                                written materials, which are attached as minutes Exhibit B. 
                             Alli Larkin, Des Moines, regarding impacts on airport communities. Ms. Larkin submitted
                               written materials, which are attached as minutes Exhibit C. 
                             Kathleen G. Tansey, Kent, regarding signage at Pier 91. Ms. Tansey submitted written
                               materials, which are attached as minutes Exhibit D. 

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

              PORT COMMISSION MEETING MINUTES                             Page 2 of 6 
                TUESDAY, MARCH 27, 2018 
                             Ralph B. Ibarra, President of Diverse America Network and representing Sundancer
                                  Electric, regarding payment of subcontractors and suppliers working on the airport's
                                  International Arrivals Facility. Mr. Ibarra submitted written materials, which are attached 
                               as minutes Exhibit E. 
                       6.    UNANIMOUS CONSENT CALENDAR 
                  [Clerk's Note: Items on the Unanimous Consent Calendar are not individually discussed.
                   Commissioners may remove items for separate discussion and vote when approving the agenda.] 
                    Agenda item 6a was removed from the agenda prior to publication. 
                     6b.  Authorization  for  the  Executive  Director  to  execute  a  new  collective  bargaining
                    agreement between the Port of Seattle and the International Brotherhood of Electrical
                        Workers, Local 46, representing 72 electricians assigned to the Port of Seattle Aviation
                     Maintenance and Maritime Maintenance divisions, covering the period from June 1,
                        2017, through May 31, 2019. 
                  Request document(s) included an agenda memorandum and agreement. 
                      6c.  Authorization  for  the  Executive  Director  to  execute  a  new  collective  bargaining
                    agreement between the Port of Seattle and the International Brotherhood of Electrical
                     Workers, Local 46, representing seven utility workers assigned to the Port of Seattle
                       Aviation Maintenance and Maritime Maintenance divisions, covering the period from
                        June 1, 2017, through May 31, 2020. 
                  Request document(s) included an agenda memorandum and agreement. 
                    As noted above, agenda item 6d was laid on the table. 
                      6e.  Authorization for the Executive Director to execute up to five professional services
                          indefinite delivery, indefinite quantity contracts for mechanical and electrical design
                       services for a total maximum value of $10,000,000. There is no funding request
                         associated with this authorization. 
                  Request document(s) included an agenda memorandum. 
                       6f.   Authorization for the Executive Director to add scope and increase the Concourse B
                Ramp Level Holdroom project budget by $436,000 in order to complete and upgrade
                       the Concourse B ramp level holdroom at Seattle-Tacoma International Airport. The new
                         authorized total project cost will be $5,994,000 (CIP #C800761). 
                  Request document(s) included an agenda memorandum. 
                    As noted above, agenda item 6g was temporarily postponed. 


                       Minutes of March 27, 2018, submitted for review on July 17, 2018, and proposed for approval on July 24, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 3 of 6 
                TUESDAY, MARCH 27, 2018 
                    The motion for approval of consent items 6b, 6c, 6e, and 6f carried by the following vote: 
                   In favor: Bowman, Calkins, Felleman, Gregoire, Steinbrueck (5) 
                       7.    SPECIAL ORDERS of BUSINESS 
                      7a.  City of Seattle Waterfront Seattle Local Improvement District Proposal. 
                   Presentation document(s) included an agenda memorandum and presentation slides. 
                     Presenter(s): Geraldine Poor, Regional Transportation Manager; Marshall Foster, City of Seattle
                     Office of the Waterfront and Civic Arena; and Joshua Curtis, City of Seattle Office of the Waterfront
                    and Civic Arena. 
                      In anticipation of completion of the opening of the SR-99 tunnel and subsequent removal of the
                  Alaskan  Way  Viaduct  and  related  waterfront  improvements,  the  commission  received  a
                    presentation on next steps and redevelopment funding. A local improvement district is estimated to
                     contribute $200 million to waterfront redevelopment. The area identified as deriving special benefit
                  from waterfront development and potentially subject to assessment under the local improvement 
                       district runs south of Wall Street and Denny Way, from Interstate 5 west to the waterfront as far
                    south as Jackson Street and Yesler Way, and includes Pioneer Square and the Stadium District at
                       its southern end. The area would include some Port of Seattle facilities, such as the Bell Harbor
                    Conference Center, World Trade Center, and related garages. 
                 Commissioners asked about overall port investment in transportation-related projects and in the
                SR-99 project in particular. Commissioners commented on the port's separate investment in
                     stormwater facilities through its marine stormwater utility. They asked about the effect on the local
                 improvement  district  should  philanthropic  funding  sources  prove  higher  than  estimated.
                  Commissioners opined on the port's representationwhen it comes to decisions affecting the
                       waterfront. 
                 Commissioners  inquired  about  the  management  structures  involved  in  the  public/private
                    partnerships for waterfront redevelopment and questioned the boundaries of the area considered
                      to derive "special benefit" from redevelopment that therefore would be included in the local
                 improvement district.They asked whether representation on the oversight committee would be
                     proportional to the size of assessment in the district. It was confirmed that public entities would be
                    included in the local improvement district assessment as provided by state law. The process for
                     establishing  the  local  improvement  district  was  summarized,  including  assessment  protest
                     opportunities and appeals. It was confirmed that the First Avenue Street Car cannot legally benefit
                    from the assessment. 
                     7b.  Authorization for the Executive Director to enter into a memorandum of agreement with
                     King County to become an official member of the King County-Cities Climate
                        Collaboration. 
                 Request document(s) included an agenda memorandum,  memorandum of agreement, and
                      presentation slides. 

                       Minutes of March 27, 2018, submitted for review on July 17, 2018, and proposed for approval on July 24, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 4 of 6 
                TUESDAY, MARCH 27, 2018 
                     Presenter(s): Elizabeth Leavitt, Senior Director, Environment and Sustainability; Lindsay Wolpa,
                   Regional Government Relations Manager; Rachel Brombaugh, Energy Policy and Partnerships
                     Specialist, King County. 
                The objectives and composition of the coalition, which includes King County and 13 cities, were
                  summarized.  The  port  and  the  coalition  share  similar  carbon  emission  reduction  goals.
                 Commissioners asked how measurement and progress on carbon emission reduction would be
                   performed. The structure of the coalition was discussed. Commissioners expressed interest in
                    focusing on local carbon reduction efforts and commented on the opportunity to share the work of
                  the port's Energy and Sustainability Committee with coalition participants. Commissioners
                commented on the low percentage of transit use among airport users and the hope that Sound
                       Transit would also act to join the coalition. 
                   The motion for approval of agenda item 7b carried by the following vote: 
                   In favor: Bowman, Calkins, Felleman, Gregoire, Steinbrueck (5) 
                    The Commission advanced to consideration of  
               ITEMS REMOVED from CONSENT 
                     6g.  Authorization for the Executive Director to establish an Energy Services Company
                        registry, a list of pre-approved energy services contractors the port can use for future
                       energy services performance contracting. 
                   Request document(s) included an abbreviated agenda memorandum. 
                     Presenter(s): Terrance Darby, Senior Environmental Management Specialist, and Nora Huey,
                    Director, Central Procurement. 
                 Commissioners asked for clarification of the purpose of the energy services company registry. It
                     was reported that the registry will streamline energy efficiency projects. Energy audits and options
                     for metering capabilities were described. 
                   The motion for approval of agenda item 6g carried by the following vote: 
                   In favor: Bowman, Calkins, Felleman, Gregoire, Steinbrueck (5) 
                       8.    AUTHORIZATIONS and FINAL ACTIONS 
                      8a.  Authorization for the Executive Director to sign an EPA Administrative Settlement
                       Agreement and Order on Consent requiring the Port of Seattle to perform a Preliminary
                       Assessment and Site Investigation at Terminal 108. Funding for this work was included
                        in the 2018-2022 annual Environmental Remediation Liability Program authorization. 
                   Request document(s) included an agenda memorandum and administrative settlement agreement. 
                    Presenter(s): Kathy Bahnick, Senior Manager, Remediation Programs, and Roy Kuroiwa, Senior
                   Environmental Program Manager. 

                       Minutes of March 27, 2018, submitted for review on July 17, 2018, and proposed for approval on July 24, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 5 of 6 
                TUESDAY, MARCH 27, 2018 
                The Terminal 108 environmental remediation site and the scope of work under the administrative
                    settlement agreement were described. Commissioners asked about the history of ownership and
                      contamination of the site. 
                   The motion for approval of agenda item 8a carried by the following vote: 
                    In favor: Calkins, Felleman, Gregoire, Steinbrueck (4) 
                  Absent for the vote: Bowman 
                     8b.  Motion 2018-04: A motion of the Port of Seattle Commission adopting the charter of an
                        Energy and Sustainability Special Committee, as attached. 
                    Request document(s) included a proposed motion and proposed charter. Copies of the final draft of
                    Motion 2018-04 and the adopted committee charter are attached. 
                     Presenter(s): Aaron Pritchard, Commission Issues and Policy Manager and Elizabeth Leavitt,
                     Senior Director, Environment and Sustainability. 
                       It was explained that the Energy and Sustainability Committee constituted January 26, 2016, had
                       fulfilled its scope of work with the December 19, 2017, proposal that included development of a
                      sustainability evaluation framework and updating Century Agenda emission reduction goals. The
                 scope of work for the new committee will include implementation and oversight of many of the
                   previous committee's recommendations. These includedevelopment of the framework and review
                      of related pilot projects, recommendation and implementation oversight of a sustainable aviation
                       fuel strategy, development of a blue carbon strategy related to sequestration of carbon dioxide in
                    coastal ecosystems, and a recommendation to update the port's environmental awards program. 
                 Commissioners commented on the attainability of sustainable aviation fuels development and the
                    importance of ground transportation emissions as a component of airport emissions. 
                     The text of the motion reads as follows: 
                   The Port of Seattle Commission hereby adopts the attached charter of the 2018
                      Energy and Sustainability Special Committee to develop policy recommendations
                       and provide oversight of the Century Agenda's environmental and sustainability
                        goals including "be the greenest and most energy-efficient Port in North America"
                     and "meet all increased energy needs through conservation and renewable
                       sources"; implementation of the Commission's motion of October 24, 2017; and of
                         the items described in the attached charter. 
                   The motion for adoption of Motion 2018-04 (agenda item 8b) carried by the following vote: 
                   In favor: Bowman, Calkins, Felleman, Gregoire, Steinbrueck (5) 
                    As noted above, agenda item 8c was laid on the table. 


                       Minutes of March 27, 2018, submitted for review on July 17, 2018, and proposed for approval on July 24, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 6 of 6 
                TUESDAY, MARCH 27, 2018 
                       9.    PRESENTATIONS, REPORTS, and STAFF BRIEFINGS 
                      9a.  International Arrivals Facility Program Update (CIP #C800583). 
                   Presentation document(s) included an agenda memorandum and presentation slides. 
                     Presenter(s): Ralph Graves, Senior Director, Capital Development; David Brush, International
                    Arrivals Facility Program Leader; and Loren Armstrong, Senior Port Counsel. 
                     Commissioners received an update on the status of the airport's International Arrivals Facility (IAF),
                    including budget overruns, schedule delays, and delay in negotiating the progressive-design-build
                    project's guaranteed maximum price (GMP). 
                  Commissioners expressed concerns over project growth and uncertainty and the content and
                     frequency of updates. They requested clarification about project elements and contractual terms. 
                 Commissioners noted that other progressive-design-build projects to which the IAF has been
                compared had obtained a GMP near 60-percent design, whereas the IAF is at 90 percent design
                   without an agreed GMP. They commented on scope and budget increases being authorized during
                    the past two years without commission awareness of the contractor's poor performance. 
                    Staff described the contractor's GMP proposal at 60 percent design, representing more than $100
                    million more than the project'slate-2015 validated cost plus $80 million of subsequent added
                   scope. They reported the decision made in July 2017 to postpone GMP negotiation until the 90-
                     percent-design point to obtain better GMP documentation and reconcile the additional cost. 
                     Commissioners asked for justification for not being alerted sooner to the seriousness of contractor
                  performance issues, including incomplete documentation to substantiate costs. Commissioners
                 remarked on the need for direct involvement by the executive director, a deadline to supply
                    adequate documentation, an audit of the IAF program, and a written response from the contractor. 
                      10.  QUESTIONS on REFERRAL to COMMITTEE  None. 
                      11.  ADJOURNMENT 
                    There was no further business, and the meeting adjourned at 4:25 p.m. 

                    Prepared:                                      Attest: 
                    Paul J. White, Commission Clerk                Courtney Gregoire, Commission President 
                    Minutes approved: July 24, 2018. 


                       Minutes of March 27, 2018, submitted for review on July 17, 2018, and proposed for approval on July 24, 2018.