PORT OF SEATTLE 

 

MEMORANDUM

 

 

COMMISSION AGENDA 

 

Item No. 

6e 

 

Date of Meeting 

August 25, 2009 

DATE:

 

August 18, 2009 

 
TO:

 

Tay Yoshitani, Chief Executive Officer 

 
FROM:

 

Michael Burke, Senior Manager, Container Leasing and Operations 

 
SUBJECT:

 

Revision to Proposed Tenth Amendment to the lease with Total Terminals, Inc. 
for Terminal 46. 

 

ACTIONS REQUESTED 

1.

 

Request for authorization for the Chief Executive Officer to execute revised Customer 
Support Package/Port’s Clean Air Program lease amendment with Total Terminals, Inc. 

2.

 

Authorization for the Port to purchase energy efficient light fixtures and related 
equipment for Terminal 46 for an amount not to exceed $680,000. 

BACKGROUND 

On April 14, 2009, the Commission authorized lease amendments with all of our container 
terminal tenants to incorporate the Customer Support Package and Clean Air Program.  As part 
of that authorization for Terminal 46, leased to Total Terminals Inc. (TTI), the Commission 
authorized the Port to contribute up to $600,000 to Seattle City Light for the lighting upgrade 
program for Terminal 46, to improve the energy efficiency of that lighting system.  
 
 Unfortunately, the Port and Seattle City Light (SCL) have not been able to work out a 
mechanism for the Port to make that contribution through SCL.  As an alternative, staff is now 
recommending that the Commission amend the authorization to allow the Port to purchase the 
energy efficient lighting fixtures and related equipment, and to verify the lighting design meets 
required standards and is structurally safe, for an amount not to exceed $680,000.  The tenant 
will be responsible for the costs and risks to install the improved lighting system.  Until the 
engineering is complete, there is some risk that the lighting upgrade will not be feasible.  If that 
were to happen, the Port and TTI would have to work out some alternative and staff would bring 
any revised plan back to Commission for authorization.  The Port will work with the light fixture 
supplier to minimize light spillover beyond the terminal boundaries but some spillover is 
inevitable in order for the lighting system to meet minimum required lighting levels on the 
terminal, including the dock. 
 
In addition, staff is also requesting the TTI amendment be modified to give TTI 30 days 
additional time to pay all rent included in their box rate for one year.  The original authorization 
was to give the additional 30 days for land rent only, but TTI’s lease converts both land and 

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