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Regular Meeting on Nov 14, 2017 1:00pm

Minutes for the Port Of Seattle Commission meeting, held on Nov 14, 2017 1:00pm

                                                                              P.O. Box 1209 
                                                                Seattle, Washington 98111 
                                                                   www.portseattle.org 
                                                                      206.787.3000 
                                         APPROVED MINUTES 
                             COMMISSION REGULAR MEETING NOVEMBER 14, 2017 
                    The Port of Seattle Commission met in a regular meeting Tuesday, November 14, 2017, at Port of
                     Seattle offices, Commission Chambers, 2711 Alaskan Way, Seattle, Washington. Commissioners 
                   Albro, Bowman, and Felleman were present. Commissioners Gregoire and Creighton were absent. 
                       1.    CALL TO ORDER 
                    The meeting was called to order at 12:06 p.m. by Commission President Tom Albro. 
                       2.    EXECUTIVE SESSION pursuant to RCW 42.30.110 
                    The public meeting was immediately recessed to an executive session estimated to last 60 minutes
                      to discuss one matter relating to litigation, legal risk, and sale or lease of real estate, and one
                   matter related to acquisition of real estate.  Following the executive session, which lasted
                    approximately 60 minutes, the public meeting reconvened at 1:17 p.m. Commissioner Albro led the
                       flag salute. 
                       3.    SPECIAL ORDERS OF BUSINESS 
                      3a.  November 14, 2017, Executive Director Report. 
                Dave Soike, Interim  Executive Director, previewed several items on the day's agenda and
                 announced activities related to the Port's community giving campaign, observance of Veterans
                     Day, and new veterans' fellows. 
             ANNOUNCEMENT 
                 Commissioner Albro announced that the Port of Tacoma is considering changing its Scheme of
                     Harbor Improvements to include a prohibition on export of petroleum or fossil-fuel products. 
                     3b.  Briefing on proposed interlocal agreement between the City of SeaTac and the Port of
                        Seattle for a ten-year term beginning February 2018. 
                    Presentation  document(s)  included an  agenda  memorandum,  presentation  slides,  and  draft
                   agreement. 
                     Presenter(s): Lance Lyttle, Managing Director, Aviation, and Clare Gallagher, Director, Capital
                      Project Delivery, Public Affairs. 


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

              PORT COMMISSION MEETING MINUTES                             Page 2 of 9 
               TUESDAY, NOVEMBER 14, 2017 
                    The background of interlocal agreement negotiations with the City of SeaTac and the key terms of
                     the agreement were summarized. Predictability for both the port and the city is an important benefit
                    of the arrangement. The agreement addresses permitting roles of the two agencies, land-use and
                     density, public safety, and traffic planning and enforcement. It also addresses fees related to traffic
                    impacts, permits, and stormwater management. Other topics addressed by the agreement are
                    business-license compliance, neighborhood parking, and permit recordkeeping. The port and city
                    have employed an interlocal agreement since 1997. 
              New elements of the agreement include port contribution to city public safety and traffic
                    management fees and additional discounting by the city of port stormwater management fees. Also
                     new is an explicit agreement for the city to serve as the lead agency for state environmental review
                       for non-airport-related development of port properties within the city. The port will agree to
                     contribute to a city neighborhood parking program from existing parking taxes as another new
                  element of the agreement. A new Airport Activity Area boundary is proposed to define consistent
                      permitting areas for the port and city, including fire permits. 
                 Commissioners asked for clarification on the percentage of property within the city owned by the
                     port and the size of the Airport Activity Area. The importance of predictable collaboration between
                     the port and the city was underscored, given the unique relationship of the two organizations. 
                       4.    UNANIMOUS CONSENT CALENDAR 
                    [Clerk's Note: Items on the UnanimousConsent Calendar are not individually discussed, although
                  commissioners may remove items from the consent calendar for separate discussion and vote in
                   accordance with commission bylaws.] 
                    Agenda item 4d was removed from the Unanimous Consent Calendar for separate discussion and vote. 
                      4a.  Approval of the Claims and Obligations for the period October 1-31, 2017, including
                       accounts payable check nos. 919948-920484 in the amount of $6,597,482.39; accounts
                     payable ACH nos. 002929-003623 in the amount of $55,741,559.04; accounts payable
                       wire transfer nos. 014735-014772 in the amount of $11,779,562.08; payroll check nos.
                     187656-187934 in the amount of $297,580.64; and payroll ACH nos. 826363-830346 in
                         the amount of $9,212,284.42 for a fund total of $83,628,468.57. 
                     4b.  Authorization for the Executive Director to execute Change Order 10 to Contract MC-
                      0318654, Central Terminal Stairs Project at Seattle-Tacoma International Airport, to
                     extend the contract duration by 76 calendar days and for the deductive amount of
                        $64,508.00. No additional funds are being requested (CIP #C800716). 
                  Request document(s) included an agenda memorandum. 
                      4c.  Authorization for the Executive Director to execute an interlocal agreement with the
                     Northwest Seaport Alliance to implement a series of support service agreements to
                        allow Port staff to provide services to the NWSA for 2018. 
                   Request document(s) included an agenda memorandum and draft agreement. 

                       Minutes of November 14, 2017, submitted for review on May 2, 2018, and proposed for approval on May 8, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 3 of 9 
               TUESDAY, NOVEMBER 14, 2017 
                    As noted above, agenda item 4d was temporarily postponed. 
                      4e.  Authorization for the Executive Director to execute an indefinite delivery, indefinite
                       quantity contract for parking revenue consulting services in the amount of $1,550,000
                          with a duration of up to five years. 
                  Request document(s) included an agenda memorandum. 
                       4f.   Authorization for the Executive Director to execute Economic Development Partnership
                   Program contracts with the Cities of Carnation, Woodinville, Pacific, Bothel, and Lake
                       Forest Park to implement local economic development initiatives for an amount not to
                        exceed $76,265, as detailed below. 
                   Request document(s) included an agenda memorandum, presentation slides, and 2016 Economic
                   Development Program report. 
                     4g.  Authorization for the Executive Director to: (1) advertise and execute a single major
                    works construction contract comprised of Taxiways A/B Reconfiguration; Taxiway L
                       Relocation; Taxiway Q Mitigation; 2018 Airfield Pavement Replacement Projects;
                    B Concourse Industrial Waste System Upgrade; and Taxiway H Signage herein to be
                        referred to as 2018 Taxiway Improvement Projects and (2) award an irregular bid or bid
                        greater than 10% over engineer's estimate, should that occur, with Commission
                         notification only, provided the total project remains within authorized budget (CIP
                       #C800914). 
                  Request document(s) included an agenda memorandum and diagram. 
                    Agenda item 4h was removed from the agenda prior to publication. 
                       4i.   Authorization  for  the  Executive  Director  to  execute  a  new  collective  bargaining
                        agreement between the Port of Seattle and the International Association of Firefighters,
                      Local 1257, representing firefighters at the Port of Seattle covering the period from
                       January 1, 2017, through December 31, 2020. 
                   Request document(s) included an agenda memorandum and draft agreement. 
               The motion for approval of consent items 4a, 4b, 4c, 4e, 4f, 4g, and 4i carried by the
                    following vote: 
                   In favor: Albro, Bowman, Felleman (3) 
                   Absent for the vote: Gregoire, Creighton 
                       5.    PUBLIC TESTIMONY 
                     An opportunity for public comment was provided, but none was offered at this time. 


                       Minutes of November 14, 2017, submitted for review on May 2, 2018, and proposed for approval on May 8, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 4 of 9 
               TUESDAY, NOVEMBER 14, 2017 
                    The Commission advanced to consideration of  
              ITEMS REMOVED FROM CONSENT 
                     4d.  Authorization for the Executive Director to (1) spend environmental remediation
                          liability funds for 2018 in the amount of $19,800,000; (2) approve a five-year plan of
                      $88,800,000 for the Environmental Remediation Liability Program for 2018-2022 of
                    which an amount estimated not to exceed $30,000,000 will be obligated during 2018
                         to be spent in future years. 
                  Request document(s) included an agenda memorandum and maps of north, south, and aviation
                      properties. 
                   Presenter(s): Kathy Bahnick, Senior Manager, Environmental Programs; and Don Robbins, Senior
                   Environmental Program Manager. 
                  Commissioners asked about use of Model Toxics Control Act funding and job creation resulting
                    from environmental remediation. 
                   The motion for approval of agenda item 4d carried by the following vote: 
                   In favor: Albro, Bowman, Felleman (3) 
                   Absent for the vote: Creighton, Gregoire 
                       6.    DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
                      6a.  First Reading and Public Hearing of Resolution No. 3738: A resolution of the Port
                   Commission of the Port of Seattle adopting the final budget of the Port of Seattle for
                       the year 2018; making, determining, and deciding the amount of taxes to be levied
                   upon the current assessment roll; providing payment of bond redemptions and
                          interest, cost of future capital improvements and acquisitions, and for such general
                    purposes allowed by law which the Port deems necessary; and directing the King
                        County Council as to the specific sums to be levied on all of the assessed property of
                          the Port of Seattle District in the Year 2018. 
                   Request document(s) included an agenda memorandum, draft resolution, and presentation slides. 
                     A copy of the final draft of Resolution No. 3738 will be made available upon adoption. 
                     Presenter(s): Dan Thomas, Chief Financial Officer; Michael Tong, Assistant Finance Director  
                    Budget; and Elizabeth Morrison, Director, Corporate Finance. 
                     Previously, a presentation on the preliminary budget for the port's operating divisions was provided
                    on October 10, 2017. Written responses to commissioner questions at that time were prepared and
                     presented for further review on October 24, 2017. 
                   General Information 
                      In summary, the 2018 budget anticipates $670 million in operating revenues and in excess of $422
                     million in operating expenses. Net operating income for 2018 is forecast above $247 million, and the

                       Minutes of November 14, 2017, submitted for review on May 2, 2018, and proposed for approval on May 8, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 5 of 9 
               TUESDAY, NOVEMBER 14, 2017 
                 2018 capital budget is proposed at slightly more than $878 million with a five-year capital spending
                     plan at approximately $3.1 billion. The tax levy proposed for 2018 is $72 million, the same as 2017 
                 and 2016. Capital spending at the airport is driven by passenger growth measured as a nearly 50-
                    percent increase in enplaned passengers. 
                   Full-Time-Equivalent Positions 
                 Whether there is need for new full-time-equivalent positions related to port priorities on energy and
                       sustainability, equity, priority hire, and women- and minority-owned business enterprise contracting
                   were discussed. Commissioners expressed the hope that applying continuous process improvement
                  methodology would eventually be quantified by the ability to redeploy existing personnel to pursue
                       port priorities rather than adding FTEs to port staff. 
                   Updates to the Preliminary Budget 
                  There is $200,000 proposed for inclusion in the Energy and Sustainability Fund not shown in the
                    presentation slides. Other changes or refinements since presentation of the preliminary budget on
                  October 10 were summarized, including increased nonaeronautical revenues and a $1.9 million
                    increase for airport janitorial services. Commissioners asked that the customer service outcomes
                     related to the additional spending be reported back in 2018. Other budget updates include additional
                    funding in conjunction with the new interlocal agreement with the City of SeaTac and additional
                     revenue from operations of the Northwest Seaport Alliance. 
                  Commissioners commented on consistency of content in the budget document between divisions,
                     noting the Aviation Division's description of baseline budget requests in terms of problems/needs and
                      opportunities.  Commissioners  opined  on  the  benefit  of  seeing  the  financial  contributions  and
                     expenses for individual non-Aviation business units early in the budget process for 2018. 
                  Capital Improvement Program 
                    A list of $119 million in Maritime and Economic Development Division capital projects recommended
                      for inclusion in the port's five-yearcapital spending plan was presented. The list of capital projects
                     recommended for deferral for the five-year period was also presented. 
                  Tax Levy 
                     Regarding the port's tax levy, it was noted that rising property values, increased housing stock, and
                    the reduction of the levy from $75.9 million in 2009 to $72 million in 2016, 2017, and 2018 has
                     resulted in an overall reduction in the port's property taxmillage rate by about 30 percent. The port
                    has not levied the maximum amount allowed since 1991, foregoing about $491 million in property tax
                     revenue during that time. 
              AMENDMENT 
                  Commissioners noted opportunities to improve the recitals, or whereas clauses, of the budget
                      resolution. The commissioners engaged in a discussion of potential refinements to the proposed
                  budget for first reading. In particular, clarifications were provided on potential spending for tourism
                   development and the valet program for cruise passenger baggage in which baggage is conveyed
                       directly to the airport from the cruise ships. Clarification was also offered regarding  investment in

                       Minutes of November 14, 2017, submitted for review on May 2, 2018, and proposed for approval on May 8, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 6 of 9 
               TUESDAY, NOVEMBER 14, 2017 
                     internships as a workforce development tool, feasibility of remote airline baggage check-in at
                     locations in eastern King County, and funding to explore possible acquisition of Salmon Bay Marina. 
                   Without objection, the commission authorized for inclusion in the budget before second reading the
                      following provisions: 
                             Funding to explore acquisition of Salmon Bay Marina; 
                             Provision of $200,000 to explore the feasibility of remote airline baggage check-in; 
                             Provision of $100,000 for tourism promotion, including $50,000 focused on ecology
                               tourism and $50,000 focused on international tourism; 
                             Increased funding to grow the port's high-school internship program by ten percent to 90
                                internships; and 
                            Elaboration in the whereas recitals regarding the port's strategic mission and incorporation
                                 in the budget resolution of a statement of adoption pertaining to the strategic content of the
                               preliminary budget, as appropriately amended. 
                   Although budget provisions in support of the cruise baggage valet program were not altered by
                    commission direction at this time, commissioners stressed the need for the service to be monetized
                 and promoted to relevant stakeholders in the expectation that external funding partners would be
                      identified in 2018 in order to continue the program. 
                 PUBLIC HEARING on Resolution No. 3738 
                    Upon a motion and second for First Reading of Resolution No. 3738, as amended, Commissioner
                     Albro declared the public hearing for the resolution open. There was no public testimony offered at
                     this time, and the public hearing was closed. 
                   The motion for approval of First Reading of Resolution No. 3738, as amended, carried by the
                     following vote: 
                   In favor: Albro, Bowman, Felleman (3) 
                   Absent for the vote: Gregoire, Creighton 
                     6b.  First Reading of Resolution No. 3739: A resolution of the Port Commission of the Port
                        of Seattle establishing jobs, pay grades, pay ranges, and pay practices for Port
                    employees not represented by a labor union; authorizing legally required benefits,
                         other  benefits  for  Port  employees  not  represented  by  a  labor  union  including
                        retirement, paid leave, healthcare, life insurance and disability benefits, benefits for
                        Port of Seattle retirees, and benefits for Port of Seattle commissioners; and authorizing
                          this resolution to be effective on January 1, 2018, and repealing all prior resolutions
                       dealing with the  same subject, including Resolution No. 3727 as amended by
                        Resolution No. 3734. 
                 Request document(s) included an agenda memorandum, presentation slides, draft resolution,
                      redline, summary of changes, and pay range exhibit. A copy of the final draft of Resolution
                    No. 3739 will be made available upon adoption. 

                       Minutes of November 14, 2017, submitted for review on May 2, 2018, and proposed for approval on May 8, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 7 of 9 
               TUESDAY, NOVEMBER 14, 2017 
                     Presenter(s): Ann McClellan, Total Rewards Manager, Human Resources, and Jeniann Kaelin,
                   Total Rewards Consultant, Human Resources. 
                    Previously, a presentation on Resolution 3739 was provided on October 24, 2017. 
                 Commissioners asked for clarification on the new parameters affecting dual reporting of selected
                     positions to both the Executive Director and the Port Commission. 
                    The motion for approval of First Reading of Resolution No. 3739 carried by the following vote: 
                   In favor: Albro, Bowman, Felleman (3) 
                   Absent for the vote: Creighton, Gregoire 
                      6c.  Authorization for the Executive Director to increase the Marine Stormwater Utility 2018
                         rates by 7.75 percent. 
                   Request document(s) included an agenda memorandum and presentation slides. 
                     Presenter(s): Stephanie Jones Stebbins, Managing Director, Maritime Division and Director,
                     Marine Stormwater Utility, and Srini Pendikatla, Stormwater Utility Program Manager. 
                    Staff provided a summary of the port's efforts as the first port in the U.S. to create its own
                    stormwater utility and described the utility's rates as well below those of the City of Seattle. 
                    Assessment of the marine stormwater infrastructure for rehabilitation is underway. Commissioners
                commented on the benefit that the port's operation of its own utility makes it possible to put
                  revenue from stormwater fees to work directly improving maritime impacts on the health of Puget
                   Sound. Commissioners asked about permeability conditions and fee assignment models. 
                   The motion for approval of agenda item 6c carried by the following vote: 
                   In favor: Albro, Bowman, Felleman (3) 
                   Absent for the vote: Creighton, Gregoire 
                     6d.  Authorization of construction funding and for the Executive Director to advertise and
                    award a major public works contract for (1) the replacement of the Shilshole Bay
                     Marina restroom and laundry facilities for an amount not to exceed $8,500,000 for a
                           total project authorization of $10,100,000 and (2) the replacement and overlay of
                       Shilshole Bay Marina paved parking areas for an amount not to exceed $1,750,000 for a
                        total project authorization of $2,000,000 (CIPs #C800356 and #C800355). 
                 Request document(s) included an agenda memorandum, presentation slides, Attachment A, and
                    Attachment B. 
                     Presenter(s): Stephanie Jones Stebbins, Managing Director, Maritime Division; Tracy McKendry,
                      Director, Recreational Boating; and Mark Longridge, Capital Project Manager, Maritime Project
                 Management. 

                       Minutes of November 14, 2017, submitted for review on May 2, 2018, and proposed for approval on May 8, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 8 of 9 
               TUESDAY, NOVEMBER 14, 2017 
                   Customer service facility improvements at Shilshole Bay Marina were summarized. Commissioners
                commented on energy efficiency improvements and storage uses at the marina and asked about
                     the schedule for public engagement on the project. 
                   The motion for approval of agenda item 6d carried by the following vote: 
                   In favor: Albro, Bowman, Felleman (3) 
                   Absent for the vote: Creighton, Gregoire 
                      6e.  Authorization for the Executive Director to (1) increase the project budget for the Flight
                       Corridor Safety Program  Phase 1 by $2,600,000 for a new total of $5,806,000; 
                        (2) execute change order(s) in excess of $300,000 as necessary to complete the tree
                     removal work; and (3) advertise and execute a major works construction contract to
                       remove invasive species and complete revegetation for Flight Corridor Safety Program
                        Phase 1 at Seattle-Tacoma International Airport. 
                   Request document(s) included an agenda memorandum and site plan. 
                    Presenter(s): Mike Ehl, Director, Airport Operations, and Ralph Wessels, Capital Project Manager,
                   Aviation Project Management. 
                      In response to commission questions, staff confirmed that the tree removal and replanting efforts
                     described in the current phase of the project are for areas P-4 and P-5. 
                   The motion for approval of agenda item 6e carried by the following vote: 
                   In favor: Albro, Bowman, Felleman (3) 
                   Absent for the vote: Creighton, Gregoire 
                       6f.   Authorization for the Executive Director to (1) execute a lease amendment for office
                    space for the Capital Development Department and Central Procurement Office Major
                       Works Department to move into the SeaTac Office Center for $6,829,000 and (2) execute
                       contracts  to  purchase  office  furniture  and  design  and  install  communications
                        infrastructure to support business needs for $2,228,000 (CIP #C800982). 
                  Request document(s) included an agenda memorandum and proposed lease amendment. 
                     Presenter(s): Ralph Graves, Senior Director, Capital Development, and James Jennings, Senior
                    Manager, Aviation Properties. 
                The need for additional office space for increased aviation division staffing and the relative costs
                     for office space were presented. 
                   The motion for approval of agenda item 6f carried by the following vote: 
                   In favor: Albro, Bowman, Felleman, (3) 
                   Absent for the vote: Creighton, Gregoire 

                       Minutes of November 14, 2017, submitted for review on May 2, 2018, and proposed for approval on May 8, 2018.

              PORT COMMISSION MEETING MINUTES                             Page 9 of 9 
               TUESDAY, NOVEMBER 14, 2017 
                       7.    STAFF BRIEFINGS 
                    Agenda items 7a and 7b were removed from the agenda prior to publication. 
                      7c.  International Arrivals Facility Quarter 3 Program Update (CIP #C800583). 
                   Presentation document(s) included an agenda memorandum. 
                    Presenter(s): Ralph Graves, Senior Director, Capital Development, and David Brush, IAF Program
                    Leader. 
                The quarterly update on the International Arrivals Facility program included a brief summary of
                     current project work and accomplishments. Regarding negotiations on the guaranteed maximum
                     price, Mr. Brush explained that negotiations have been ongoing for the past year with nine key cost
                     elements under consideration. Not all of the work related to the cost elements has yet been bid, so
               much of the negotiation is based on estimates. He reported that the team hopes to conclude
                    negotiations and identify the guaranteed maximum price by the end of 2017. In the meantime, work
                     continues to keep to the project schedule. Project design is at 90 percent. 
                 Commissioners asked that the time spent in negotiating the guaranteed maximum price be
                    monetized and factored into a future assessment of the lessons learned from the IAF project, which
                      is the first to be attempted by the Port of Seattle using the progressive design-build delivery model. 
                      New considerations affecting completion of the arrivals-hall portion on the project include discovery of
                    environmental contamination on the site, which has had a greater impact on schedule than project
                    budget. Design of the arrivals hall may also be affected by emergent technology that employs facial
                     recognition software and may change the design related to the flow and queuing of passengers. There
                       is potential for facial recognition to add four-to-six months to final project completion. 
                       8.    ADDITIONAL NEW BUSINESS  None. 
                       9.    ADJOURNMENT 
                    There was no further business, and the meeting adjourned at 5:24 p.m. 

                    Prepared:                                      Attest: 
                    Paul J. White, Commission Clerk                Ryan Calkins, Commission Secretary 
                   Minutes approved: May 8, 2018. 



                       Minutes of November 14, 2017, submitted for review on May 2, 2018, and proposed for approval on May 8, 2018.