Minutes

Commissioners                                               Tay Yoshitani 
Chief Executive Officer 
Bill Bryant 
Chair and President 
John Creighton                           P.O. Box 1209 
Patricia Davis                           Seattle, Washington 98111 
Lloyd Hara                             www. portseattle.org 
Gael Tarleton                              206.728.3000 

An audio of the meeting proceedings and meeting materials are available on the Port of
Seattle web site - 
http://www.portseattle.org/about/organization/commission/commission.shtml 
(The approximate point in the audio recording for the specific item is identified by
minutes and seconds; example: 01:30.) 
APPROVED MINUTES 
COMMISSION SPECIAL MEETING MARCH 5, 2009 
The Port of Seattle Commission met in a regular meeting at 12:00 p.m., Thursday, March
5, 2009 in the Commission Chambers at Pier 69, 2711 Alaskan Way, Seattle, WA.
Commissioners Bryant, Davis, and Hara and Tarleton were present. Commissioner
Creighton was absent. 
1.     CALL TO ORDER 
The regular meeting was called to order at 12:05 p.m. by Bill Bryant, Commission
President. 
2.     EXECUTIVE SESSION pursuant to RCW 42.30.110 
The special meeting was immediately recessed to an executive session to discuss real
estate and litigation matters and reconvened to open public session. 
PLEDGE OF ALLEGIANCE 
3.     APPROVAL OF MINUTES 
(00:01:00) Motion for approval of minutes of the January 27, 2009 special meeting 
Hara 
Motion carried by the following vote: 
In favor: Bryant, Davis, Hara, Tarleton (4) 
Commissioner Creighton was absent for the vote 

March 5 SM Min



PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
THURSDAY, MARCH 5, 2009                          P. 2 
4.     SPECIAL ORDER OF BUSINESS 
None. 
5.     UNANIMOUS CONSENT CALENDAR 
None. 
General Business items were advanced on the agenda as follows: 
11.    GENERAL BUSINESS 
a.  (00:02:02) Request for authorization to execute a new collecti ve bargaining
agreement with International Brotherhood of Teamsters, Local 117,
representing Police Specialists. 
Request document: Commission agenda memorandum dated January 20, 2009 from
Gary Schmitt, Labor Relations Director 
Presenters: Colleen Wilson, Chief of Port Police Department and Jim Smith, Labor
Relations Manager 
Staff provided background on the three bargaining agreements to be voted on. 
Motion for approval of Item 11a  Davis 
Public comment was received regarding Items 11a, 11b, and 11c from the following: 
Tracy Thompson, Teamsters Local 117. Ms Thompson spoke in favor of the
three collective bargaining agreements, commenting on the good work done
between the Port and Teamsters, and urged Commission approval of the
agreements. 
Motion carried by the following vote: 
In Favor: Bryant, Davis, Hara, Tarleton (4) 
Commissioner Creighton was absent for the vote 
b.  Request for authorization to execute a new collective bargaining agreement with
International Brotherhood of Teamsters, Local 117, representing Police Officers. 
Request document: Commission agenda memorandum dated February 4, 2009 from
Gary Schmitt, Labor Relations Director 

March 5 SM Min


PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
THURSDAY, MARCH 5, 2009                          P. 3 
Presenters: Colleen Wilson, Chief of Port Police Department and Jim Smith, Labor
Relations Manager 
Motion for approval of Item 11b  Tarleton 
Motion carried by the following vote: 
In Favor: Bryant, Davis, Hara, Tarleton (4) 
Commissioner Creighton was absent for the vote 
c.  Request for authorization to execute a new collective bargaining agreement with
International Brotherhood of Teamsters, Local 117, representing Police
Sergeants. 
Request document: Commission agenda memorandum dated February 4, 2009 from
Gary Schmitt, Labor Relations Director 
Presenters: Colleen Wilson, Chief of Port Police Department and Jim Smith, Labor
Relations Manager 
Motion for approval of Item 11c  Hara 
Motion carried by the following vote: 
In Favor: Bryant, Davis, Hara, Tarleton (4) 
Commissioner Creighton was absent for the vote 
Due to technical difficulties with the audio, a brief recess was called by Commissioner
Bryant, and the meeting was reconvened. 
Agenda Action Items were advanced as follows: 
7.     MARINE ITEMS 
None. 
8.     AVIATION ITEMS 
a.  (00:23:18) Request for authorization to execute amendment to Lease and
Concessions Agreements of Prime Concessionaires Host International (Host),
Seattle Restaurant Associates (SRA), Concessions International (CI), and
Airport Management Services, LLC (dba Hudson News). 


March 5 SM Min



PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
THURSDAY, MARCH 5, 2009                          P. 4 
Request document: Commission agenda memorandum dated February 26, 2009 from
James R. Schone, Director, Aviation Business Development and Deanna Zachrisson,
Manager, Aviation Concessions Business 
Presenters: Mr. Schone and Ms. Zachrisson 
Mr. Schone reiterated the fact that today's request is being made due to moves in Airline
tenants at the Airport, and not due to the current economic situation. 
Ms. Zachrisson gave an update on changes since last week's briefing to the Commission
on the planned relief measures. She expressed the importance of being careful to not
create any unintended inequities to concessionaires. She commented that most tenants,
both primes as well as sub-primes, are in support of the proposal; however, some would
like to see even more relief. 
Commissioner Tarleton asked to receive updated information regularly to stay apprised
of the situation as it unfolds, specifically regarding the number of jobs being affected and
whether or not there are any disproportionate impacts to Minority and Women-Owned
businesses. 
Commissioner Hara stated concern over meeting goals of FAA standards as well as
working with the WMBE (Women and Minority Business Enterprise) program. 
Mr. Schone noted that information addressing Commissioner Hara's concerns could be
incorporated into the update reports requested by Commissioner Tarleton. 
Motion for approval of Item 8a  Davis 
Motion carried by the following vote: 
In Favor: Bryant, Davis, Tarleton (3) 
Opposed: Hara (1) 
Commissioner Creighton was absent for the vote. 
b.  (00:48:16) Request for authorization to procure and execute service agreements
with consultants to perform design, prepare contract documents, and perform
contract administration for South Air Operations Area (AOA) Fence
Replacement Project at Seattle-Tacoma International Airport in the amount of
$375,000. 
Request document: Commission agenda memorandum dated February 18, 2009 from
Dave Soike, Deputy Managing Director, Aviation Division and Mike Ehl, Director,
Airport Operations 

March 5 SM Min



PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
THURSDAY, MARCH 5, 2009                          P. 5 
Presenters: Tina Soike, Senior Manager, Airport Operations and Steve Osmek, Wildlife
Biologist, Airport Operations 
Staff explained the need for this request, which is due to dangers caused to aircraft by
coyote presence on airfield at the airport and noted that the presence of coyotes is
happening at an increased frequency. 
Mr. Osmek noted three points of importance regarding the request: 
A substantial increase of the number of coyote sightings on the airfield 
Current state regulations which make coyote trappings difficult 
Lethal removal by shooting being the only current effective of removal of
coyotes on the airfield 
Motion for approval of Item 8b  Davis 
Staff clarified that the source of funds for the project would be the Airport Development
Fund. 
Comments were made by Commissioners appreciating the use of recycled materials
within the project. 
Motion carried by the following vote: 
In Favor: Bryant, Davis, Hara, Tarleton (4) 
Commissioner Creighton was absent for the vote 
c.  (00:57:56) Resolution No. 3612, Second Reading and Final Passage. Declaring
surplus and no longer needed for Port District purposes certain property,
including eight x-ray machines; seven explosive trace detection machines; and 17
walk-through metal detectors; authorizing transfer of the property to the
Transportation Security Administration (TSA), including payment of one dollar
per unit of equipment and the assumption of costs and liabilities associated with
maintaining and disposing of the property. 
Request document: Commission agenda memorandum dated February 25, 2009 from
Michael Ehl, Director, Airport Operations and Nick Harrison, Senior Manager, Airport
Operations 
Presenter: Mr. Harrison 
Motion for Second Reading and Final Passage of Resolution No. 3612  Hara 
Motion carried by the following vote: 
In Favor: Bryant, Davis, Hara, Tarleton (4 

March 5 SM Min





PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
THURSDAY, MARCH 5, 2009                          P. 6 

Commissioner Creighton was absent for the vote 
d.  (00:58:55) Request for authorization to execute a Lease for Multifunction
Document Devices for the Airport Office Building at an estimated cost of
$463,251. 
Request document: Commission agenda memorandum dated February 13, 2009 from
Tony Baca, Manager, Airport Buildings and Facilities Services and Michele Fideler,
Airport Facilities Manager 
Presenters: Mr. Baca and Ms. Fideler 
Motion for approval of Item 8d  Tarleton 
Motion carried by the following vote: 
In Favor: Bryant, Davis, Hara, Tarleton (4) 
Commissioner Creighton was absent for the vote 
9.     CAPITAL DEVELOPMENT 
None. 
10.    REAL ESTATE 
a.  (01:04:32) Request for authorization to execute Fourth Amendment to
Management Agreement for operation of Bell Harbor International Conference
Center between Port of Seattle and Columbia Hospitality, Inc. to include the
"Maritime Event Center at Bell Harbor" premises (former Odyssey space), as
exclusive premises, and use those premises for events, meetings, and catering. 
Request document: Commission agenda memorandum dated February 18, 2009 from Joe
McWilliams, Managing Director, Real Estate Division and Pat Spangler, Real Estate
Manager 
Presenter: Mr. McWilliams 
Motion for approval of Item 10a  Hara 
Commissioner Tarleton commented that substantial public discussion had been held
regarding this item, both at Commission meetings and Audit Committee Meetings, which
assured ample transparency. Commissioner Davis noted the importance of keeping
educational programs and non-profit community activities. 

March 5 SM Min




PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
THURSDAY, MARCH 5, 2009                          P. 7 
A copy of a letter regarding Item 10a to CEO Yoshitani, dated March 2, 2009, from Gary
Stauffer, Youth Maritime Training Association was submitted for the record. A copy is,
by reference, made a part of these minutes; is marked Exhibit 'A;' and is on file in Port
offices. 
Motion carried by the following vote: 
In Favor: Bryant, Davis, Hara, Tarleton (4) 
Commissioner Creighton was absent for the vote 
The agenda was returned to Policy and Staff Briefings as follows: 
6.     POLICY AND STAFF BRIEFINGS 
a.  (01:10:19) Briefing on Consolidated Rental Car Facility (CRCF) Finance Status 
Presentation documents: Commission agenda memorandum dated February 19, 2009 and
computer slide presentation from Dan Thomas, Chief Financial Officer; Mark Reis,
Managing Director, Aviation Division; and Elizabeth Morrison, Senior Manager,
Corporate Finance 
Presenters: Mr. Thomas, Mr. Reis, and Ms. Morrison 
Mr. Reis provided background of the suspension of the CRCF Project, which was
implemented in December, 2008 and commented on changes since then, which included: 
A thawing in financial markets 
Availability of additional financing tools 
A change in Airport passenger traffic forecast 
Mr. Reis noted that staff is continuing to work understanding what is happening with
projected enplanements possible scenarios and will work closely with the rental car
companies to understand related implications. He stated that staff would likely return to
the Commission in May or June with a firm financing plan. 
Commissioner Tarleton requested that staff provide information  perhaps quarterly  
showing indicators of those who are using rental cars. 
Mr. Thomas stated that he believes staff now has a sound, reasonable and prudent
financing strategy, which would give significant flexibility to manage the plan and would
fully fund the construction of the project. 
Dick Schober, Seattle Northwest Securities, was introduced by staff and gave an update
on current market function and liquidity, noting several recent significant transactions. 

March 5 SM Min

PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
THURSDAY, MARCH 5, 2009                          P. 8 

Ms. Morrison spoke provided information on possible financing tools that appear to be
available, noting that any of the tools would need Commission approval. They included: 
Short-term bank lines of credit 
Long-term, fixed-rate bonds 
Ability to use cash from the Airport Development Fund 
Total resources available are between $500 - $700 million 
Ms Morrison stated that the tools could be combined in the most appropriate manner and
that combinations can help balance certainty, flexibility, and cost. 
Mr. Thomas clarified that staff intends to have several tiers of 'backstops' available in the
plan for funding, depending on market situations. 
Responding to Commissioner Bryant's question regarding CFC (Customer Facility
Charge) funds, Mr. Thomas agreed that ultimately the CFC's would have to pay,
regardless of how it is backed up. 
Staff clarified answers to questions questions from Commission Tarleton referring to the
Commission meeting minutes of January 27, 2009, where questions were asked about the
possibility of opening the CRCF later than 2010 and about the amount of money spent. 
Ms. Morrison spoke about two possible scenarios: 
Scenario 1: Impacts: Base Case 
2009 
o  $200 million, 10-year fixed-rate bonds 
o  $200 million, bank lines of credit 
2010 - 2011 
o  Repay one bank line with $100 million 10-30 year fixed-rate bonds 
o  Convert one bank line to long-term variable rate bonds 
By 2012 the finance structure will be: 
o  $300 million fixed-rate bonds, 10-30 years 
o  $100 million variable-rate bonds 
By 2019, the 10-year bonds will be refinanced 
Impacts of Scenario 1: 
Estimated opening CFC: $6.50 - $7.00 
Major projects are typically funded with multiple bond issues 
Advantages 
o  Debt issued on Intermediate Lien designed to accommodate CFC-funded
debt 

March 5 SM Min

PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
THURSDAY, MARCH 5, 2009                          P. 9 
o  10-year maturities  lower interest rates than long-term and provide more
flexibility 
o  Variable rate debt  lower interest rates and flexibility to refund or pay off
without penalty 
Disadvantages 
o  Refinancing risk when bonds mature 
o  Rate fluctuations of variable rate debt 
Scenario 2: Maximize Certainty 
$425 million fixed rate 
o  30-year debt 
o  First Lien 
o  Negative carry of 100% fixed rate debt issued in 2009 requires greater use
of capitalized interest; therefore more bond proceeds 
Impacts of Scenario 2: 
Estimated opening CFC - $6.75 - $7.25 
Advantages 
o  Certainty of debut service over 30 years 
Disadvantages 
o  Uses first lien capacity for long term 
o  Negative carry on full amount of debt 
o  No flexibility to restructure or take advantage of future market
opportunities 
Public comment regarding Item 6a was received by the following individuals: 
Lorie Tallarico, Avis/Budget Rental Car Group. Ms Tallarico commented on her
support of the schedule, but expressed the need to scrutinize enplanements and the
demand for rental cars. 
Lee Newgent, Seattle Building Trades. Mr. Newgent commented on the close
work of Building Trades with the Port and others, including Turner Construction,
and expressed support of the recent legislation to find a solution. 
Commissioners expressed their support of moving forward with the project, noting the
need to focus on jobs; the need to scrutinize enplanement data and CFC projections, and
the need to keep costs as low as possible. 
Commissioner Bryant commented that it would be helpful to know what some of our
major airline partners feel about the possible scenarios for moving forward with the 
project. 
A brief recess was called by Commissioner Bryant and the meeting was reconvened at
3:50. 

March 5 SM Min






PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
THURSDAY, MARCH 5, 2009                         P. 10 

b.  (02:35:32) Annual Treasury and Investment Portfolio Report for 2008 
Presentation documents: Commission agenda memorandum dated February 19, 2009 and
computer slide presentation from Craig J. Kerr, Treasury Manager 
Presenter: Mr. Kerr 
Commission was briefed on the following: 
Background of Port Treasurer 
Port's Investment Strategy 
Portfolio Composition 
Interest Rate Trends 
2008 Rates 
Treasure Yield Curve 
Current Financial Environment 
2008 Yield Comparison 
Portfolio Yield, 2004-2008 
Portfolio Value, 2004-2008 
Commissioner Hara noted that he would like the Audit Committee to receive a copy of
the status of the Port's portfolio. Mr. Kerr noted that a summary of the portfolio had
been added to the regular quarterly financial report. 
c.  (02:52:59) Briefing on 2008 Year-end Financial Status 
Presentation documents: Commission agenda memorandum dated February 18, 2009,
computer slide presentation, and report from Michael Tong, Corporate Budget Manager 
Presenters: Mr. Tong, Borgan Anderson, Manager, Aviation Finance and Budget, and
Boni Buringrud, Manager, Seaport Finance and Budget 
Mr. Tong provided an overview of the Portwide financial status, including: 
Total Port Income 
Net Operating Income 
Non-Ops Income 
2008 Capital Spending by Division 
Total Port 2008 Capital Spending 
Mr. Anderson reported on the 2008 Aviation Division financial performance, including: 
Business Highlights 
o  Airline Activity 

March 5 SM Min

PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
THURSDAY, MARCH 5, 2009                         P. 11 
o  Non-aeronautical Net Operating Income 
o  Operating and Maintenance Costs 
o  Airline Cost Per Enplanement (CPE) 
o  Major Project Milestones 
Air Traffic 
o  Enplanements vs. Prior Year 
o  Landed Weight vs. Prior Year 
Revenues 
Operating Expenses 
Expense Variance Explanations 
Key Indicators 
Capital Spending 2004-2008 and Major Variances 
Ms. Buringrud reported on both the Seaport and Real Estate Divisions regarding: 
Seaport 
Organizational Goals 
Operating Results 
Key Variances 
Operating Expenses Year to Year Change 
Net Operating Income (NOI) Before Depreciation 
2008 Capital 
Real Estate 
2008 Key Events 
Business Goals 
Organizational Goals 
Operating Results 
Key Variances 
NOI Before Depreciation 
2008 Capital 
Mr. Tong reported on the 2008 Financial Performance of Corporate Professional and
Technical Services, including: 
Key Events 
Business Goals 
Corporate Indicators 
Major Awards Received in 2008 
Operating Results 
d.  (03:27:22) Briefing on proposed Audit Committee Charter Revisions 

March 5 SM Min




PORT COMMISSION MINUTES OF THE SPECIAL MEETING 
THURSDAY, MARCH 5, 2009                         P. 12 
Presentation documents: Commission agenda memorandum dated March 5, 2009 and
computer slide presentation from Tom Barnard, Research and Policy Analyst 
Presenter: Mr. Barnard 
Mr. Barnard presented background information on the creation of the Audit Committee,
noting that the Committee had taken on a greater amount of work over the past year, and
decided it would be appropriate to amend their current charter. 
After describing the major changes anticipated to the charter, it was noted that a
resolution would come to the Commission for First Reading on March 10, 2009. 
Commissioner Davis requested that the Commission receive copies of both the proposed
new charter as well as the current charter prior to First Reading. 
The agenda was returned to General Business as follows: 
11.    GENERAL BUSINESS 
d.     (03:37:31) The Commission special meeting was recessed to a special annual
meeting of the Industrial Development Corporation of the Port of Seattle. Following its
adjournment, the special meeting of the Port Commission was reconvened. 
12.    NEW BUSINESS 
Commissioner Davis stated that she would like to see an acknowledgement of recently
received awards to the Port at a meeting in the near future. 
Commissioner Bryant commented that he would like to have Commission trip reports at
the next meeting. 
13.    ADJOURNMENT 
There being no further business, the meeting was adjourned at 5:03 p.m. 
(A digital recording of the meeting is available on the Port's website.) 

Lloyd Hara 
Secretary 



March 5 SM Min

Limitations of Translatable Documents

PDF files are created with text and images are placed at an exact position on a page of a fixed size.
Web pages are fluid in nature, and the exact positioning of PDF text creates presentation problems.
PDFs that are full page graphics, or scanned pages are generally unable to be made accessible, In these cases, viewing whatever plain text could be extracted is the only alternative.