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                                     206.787.3000 

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  Please note: For the August 11, 2009 meeting,
there are two separate audios.) 
APPROVED MINUTES 
COMMISSION REGULAR MEETING AUGUST 11, 2009 
The Port of Seattle Commission met in a regular meeting at 1:00 p.m., Tuesday, August
11, 2009 in the Commission Chambers at Pier 69, 2711 Alaskan Way, Seattle, WA.
Commissioners Bryant, Creighton, Davis, Hara and Tarleton were present. 
1.       CALL TO ORDER 
The regular meeting was called to order at 1:12 p.m. by Bill Bryant, Chair and President. 
2.       EXECUTIVE SESSION pursuant to RCW 42.30.110 
The regular meeting was immediately recessed to an executive session for approximately
one hour to discuss legal risk and real estate issues and reconvened to open public session 
PLEDGE OF ALLEGIANCE 
3.       APPROVAL OF MINUTES 
(Audio part one - 00:00:48) Motion for approv al of the minutes of the regular
meeting of July 14, 2009 - Davis 
Second  Creighton 
Motion carried by the following vote: 
In Favor: Bryant, Creighton, Davis, Hara, (4) 

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Commissioner Tarleton was absent from the subject meeting. 
Motion for approval of the minutes of the special meeting of July 21, 2009  Davis 
Second  Creighton 
Motion carried by the following vote: 
In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
4.      SPECIAL ORDER OF BUSINESS 
None. 
5.      (00:01:33) UNANIMOUS CONSENT CALENDAR 
a.  Authorization for approval of Outstanding Claims and Obligations for the
period of July 1 through July 31, 2009 in the amount of $49,984,200.33 
b.  Authorization for the Chief Executive Officer to amend four professional
services contracts that support Investigations for the Lower Duwamish
Waterway (LDW) and Harbor Island superfund sites and provide notification
to Commission in accordance with RCW 53.19.060 that the amendments exceed
50% of the cumulative value of the initial contract. 
Request document: Commission agenda memorandum dated July 10, 2009 from
Stephanie Jones Stebbins, Senior Manager, Seaport Environmental Programs and Kathy
Bahnick, Environmental Program Supervisor, Seaport Environmental Programs 
c.   Authorization for the Chief Executive Officer to execute a Category 3
professional services contract for consultant support for environmental
investigation and associated regulatory coordination at Terminal 115N ranging
from approximately $750,000 to $1,000,000. 
Request document: Commission agenda memorandum dated July 14, 2009 from
Stephanie Jones Stebbins, Senior Manager, Seaport Environmental Programs and Kathy
Bahnick, Senior Environmental Program Manager 
d.  Authorization for the Chief Executive Officer to issue Change Order Number
010 for the North and South Satellites Food Courts Flooring Replacement
Project to add the additional time required, 61 days, to complete the project. 
Request document: Commission agenda memorandum dated August 3, 2009 from Ralph
Graves, Managing Director, Capital Development Division 

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e.   Authorization for the Chief Executive Officer to authorize all work, execute
Category III procurement process, and execute all contracts and amendments
for photographic services to provide both scheduled and on-call photography
and related services for a one-year contract, with the option to renew for an
additional two years. Estimated annual contract value of $80,000, with the
option to renew for up to three years, for a total procurement amount not to
exceed $240,000. 
Request document: Commission agenda memorandum dated July 28, 2009 from Jane
Kilburn, Director, Public Affairs and Nancy Blanton, Manager, Corporate
Communications 
f.   Authorization for the Chief Executive Officer to handle requests for privileged
documents by the State Auditor as part of the current performance and
accountability audits. 
Request document: Commission agenda memorandum dated July 31, 2009 from Craig
Watson, General Counsel and Tom Tanaka, Senior Port Counsel 
Motion for approval of Consent Calendar Items 5a-5f  Tarleton 
Second  Davis 
Motion carried by the following vote: 
In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
Commissioner Davis commented on the two consent items regarding the Duwamish
superfund site cleanup (Items 6b and 6c), noting for the record that the money for these
projects comes from the tax levy. 
6.   DIVISION, CORPORATE AND COMMISSION ACTION ITEMS 
a.  (00:03:04) Authorization for the Chief Executive Officer to authorize
permitting, design and project management to be performed for the completion
of the South Wall reconstruction at Fishermen's Terminal (FT) in the amount of
$980,000. 
Request document: Commission agenda memorandum dated July 27, 2009 from Melinda
Miller, Director, Portfolio Management and Tim Leonard, Capital Project Manager; and
computer slide presentation. 
Presenter: Ms. Miller 
Ms. Miller referenced a recent briefing to the Commission on the background of this
project and the need for completion of the final phase of the seawall replacement at

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Fishermen's Terminal, noting that this request is for design, permitting, and project
management, the majority of which would be done by Port staff. She stated that staff
would return to Commission at a future date for authorization to proceed. 
Ms. Miller clarified that if the project remains on schedule, the work will be done during
the fish window opening which begins in October, 2010 and is anticipated to be about an
eight month period of construction. 
Motion for approval of Item 6a  Davis 
Second  Creighton 
Motion carried by the following vote: 
In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
b.  (00:10:45) Authorization for the Chief Executive Officer to: 
1. Enter into agreements to complete design and permitting for the
replacement of four (4) mooring dolphins at the north end of Harbor
Island, and; 
2. Procure long lead materials required to complete the project within the
current schedule. Total amount of the request is $480,000. 
Request document: Commission agenda memorandum dated July 24, 2009 from Mike
McLaughlin, Director, Cruise and Industrial Properties; Scott Pattison, Manager,
Industrial Properties and Business Development; and Mark Longridge, Project Manager,
Capital Development Division; and computer slide presentation 
Presenters Mr. McLaughlin and Mr. Longridge 
Mr. McLaughlin noted that today's request was to move forward with design and
permitting of the project required to replace mooring dolphins at Terminal 18. It was
noted that staff would return at a later date with an estimate of the final construction costs
and a request for authorization to proceed.
Mr. Longridge provided background information of the project as well as the planned
project schedule, which is expected to be completed by the spring of 2010. 
Commissioner Davis commented that this project will result in the removal of some old
creosote pilings and noted the benefit of that with respect to the environment. 
Staff confirmed that they believe this project will create benefits for the barge industry
throughout the harbor. 
Motion for approval of Item 6b  Hara 

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Second  Davis 
Motion carried by the following vote: 
In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
c.   (00:21:39) Authorization for the Chief Executive Officer to perform full design
documents; prepare, execute, award and amend service agreements; and execute
service directives for C1 to C88 Baggage Handling Connection Project at
Seattle-Tacoma International Airport for an estimated cost of $280,000. The
ultimate cost for the constructed project is estimated to be $2,800.000. 
Request document: Commission agenda memorandum dated July 24, 2009 from Michael
Ehl, Director, Airport Operations and Robert F. Riley, Director, Aviation Capital
Improvement Program 
Presenters: Dave Soike, Deputy Director, Aviation Division and Ed Weitz, Capital
Project Manager 
Mr. Soike provided background of the project, noting that this project will connect two of
the seven baggage handling systems at the Airport, and stated that it will allow Alaska
Airlines baggage to move to the north satellite via an existing underground tunnel rather
than being towed across the airfield by tugs. He clarified that the project has been
approved by the airlines and they have agreed to pay for it. 
Responding to Commissioner Creighton's question as to whether or not this project is
eligible for federal grant money, Mr. Soike responded that since the project does not
enhance security, it would not be eligible for that funding. 
Motion for approval of Item 6c  Davis 
Second  Hara 
Prior to the vote, Commissioner Creighton asked whether there was a hard deadline for
the completion of this project, Mr. Soike noted that a full design of the project will be
done before going out to an open public bid, and that there is no hard deadline. 
Motion carried by the following vote: 
In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
d.  (00:32:32) Ratification of critical fender pile work at Terminal 91 in accordance
with Resolution No. 3605. 
Request document: Memorandum dated August 10, 2009 from Ralph Graves, Managing
Director, Capital Development Division 

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Presenters: Mr. Graves and Mark Longridge, Project Manager, Capital Development
Division 
CEO Yoshitani noted that this was an action item, and clarified that this request for
ratification of a critical work situation was the first time this provision has been used
since the Commission adopted Resolution No. 3605. 
Mr. Graves noted that this work did not rise to the level of being emergency, and
therefore there is no need to bypass any contractual steps; however, this would be
shortcutting our own procedures' approval of work. 
Mr. Longridge provided an overview of the area at Terminal 91 which is referred to in
this request, and noted that the work needs to be done in order to allow safe cruise
berthing. He clarified that there have been no disruptions to cruise service as a result of
the deteriorating fender piles. 
Motion for ratification of Declaration of Critical Work Situation, Item 6d  
Tarleton 
Second  Davis 
Motion carried by the following vote: 
In Favor: Bryant, Creighton, Davis, Hara, Tarleton (5) 
7.   STAFF BRIEFINGS 
a.  (00:38:39) South Satellite Common Use Gate Strategy 
Presentation document: Commission agenda memorandum dated July 27, 2009 from 
Michael Ehl, Director, Airport Operations 
Presenter: Nick Harrison, Senior Manager, Airport Operations 
As background to a request for authorization for common use equipment which would be
coming soon to the Commission, Mr. Harrison provided an overview of why common
use gates are beneficial both to the Port and to the airlines. He noted that the biggest
driver of this project was the recent consolidation of Delta and Northwest airlines
operations in the south satellite terminal. 
b.  (00:43:07) Terminal 30 Apron Upgrade Status Briefing 
Presentation document: Commission agenda memorandum dated August 3, 2009 and
computer slide presentation from Ralph Graves, Managing Director, Capital

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Development Division and Mike Burke, Senior Manager, Container Leasing and
Operations 
Presenters: Mr. Graves and Mr. Burke 
Mr. Graves provided a brief operational update on Terminal 30, including a video a video
showing loading and unloading of containers at the terminal. Also discussed was the
recently replace crane cable. It was noted that the settlement of the final cost of the cable
is still being negotiated. 
Mr. Graves also provided information on the status of the cost of uplands disposal of
dredge spoil, noting that the cost came to $3.6 million; that King County has paid $1.4
million of that cost; and that discussions are ongoing with King County regarding a
$400,000 balance. 
Commissioner Tarleton posed the following questions to staff: How many containers can
we now handle with the new terminal operating? How many people are going back to
work now that Terminal 30 is serving the container industry again? How many new
customers has the Port been able to attract by bringing Terminal 30 online? 
Mr. Burke noted that it is difficult to have an exact answer as to how many containers are
being handled, as that number can vary due to a variety of reasons. He also stated that
the terminal still has significant growth potential and could get into the 400,000-500,000
TEU range. As to the number of jobs, Mr. Burke stated he would need to return with that
information. He provided information on current customers at the terminal and stated
that staff would continue to provide further and ongoing information about customers
there. 
A brief recess of the regular meeting was called at 1:55 and the meeting was reconvened
at 2:08 p.m. for a Budget Workshop. 
8.   NEW BUSINESS 
None. 
9.   POLICY ROUNDTABLE 
a.  (Audio part two - 00:00:01) Second Quarter 2009 Financial Performance
Briefing and Year-end Outlook 
Presentation documents: Commission agenda memorandum dated July 28, 2009; 
computer slide presentation; and quarterly performance report from Michael Tong,
Corporate Budget Manager. 


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Presenters: Mr. Tong; Borgan Anderson, Manager, Aviation Finance and Budget; Boni
Buringrud, Manager, Seaport Finance and Budget; and Ralph Graves, Managing
Director, Capital Development Division.
Mr. Tong presented a brief overview of the Port-wide financial results for the second
quarter of 2009. Included as a part of the overview were the Port -wide income summary,
the Port-wide year-end forecast, and total Port capital spending for 2009 
Mr. Tong also pointed out that there would be some costs hitting the budget due to the
voluntary separation program (VSP) and upcoming layoffs and noted that the current
estimate for the VSP is approximately $2.7 million. 
Mr. Anderson reviewed the Q2 Financial Performance of the Aviation Division. Topics
discussed included: 
Business Highlights 
o Airline activity 
o Operating budget 
o Non-airline revenues 
o Capital Budget 
Year-to-date operating revenues 
Year-to-date operating expenses 
Aeronautical business and key indicators 
Non-aeronautical business and key indicators 
Year-end expense forecast summary 
Summary of financial results 
Capital budget spending 
Ms. Buringrud provided a review of the Q2 Performance of the Seaport Division. Topics
discussed included: 
Seaport business goals 
o TEU volume 
o Grain volume 
o Smith Cove cruise facility 
Seaport organizational goals 
o Environmental stewardship 
o Regional transportation 
2009 expense budget reductions 
Seaport full year operating forecast 
Seaport second quarter year-to-date operating results 
Key variances, revenue and expense detail 
Business groups 
Seaport capital for 2009 

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Ms. Buringrud then presented an overview of the second quarter performance of the Real
Estate Division. Topics reviewed included: 
Business goals 
2009 expense budget reductions 
Real Estate Division full-year forecast 
Year-to-date operating results 
Second quarter key variances, revenue and expense detail 
Business groups 
Real Estate capital for 2009 
Mr. Graves provided an overview of the second quarter performance of the Capital
Development Division. Topics reviewed included: 
Year-to-date business events, including: 
o Restart of Rental Car Facility 
o Completion of T91 Cruise Terminal Facility 
o Completion of T30 Container Terminal Redevelopment 
Key indicators 
Operating results and forecast 
Mr. Tong then presented an overview of the second quarter performance of Corporate
Professional and Technical Services, including 
Operating results 
Corporate highlights 
Corporate indicators 
Commissioner Tarleton suggested that under 'Corporate Highlights' there be an
additional item noted regarding the establishment of metrics to measure the effective
performance of the recently created Capital Development Division. 
b.  (00:58:01) 2010 Budget  Key Assumptions and Guidelines Discussion 
Presentation documents: Commission agenda memorandum dated July 28, 2009 and
computer slide presentation from Michael Tong, Corporate Budget Manager 
Presenters: Mr. Tong; Dan Thomas, Chief Financial Officer; Borgan Anderson,
Manager, Aviation Finance and Budget; and Boni Buringrud, Manager, Seaport Budget
and Finance 
Mr. Anderson provided background information on the Airline industry since 2001,
noting that since during that time, the industry has lost a significant amount of money and
does not have a lot of flexibility to absorb additional losses. He stated his belief that
capacity cuts and cost-cutting measures taken by the industry have probably not been

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enough and the lack of profits is still likely this year. He commented that the current
weak economy has depressed travel demand in 2009. Regarding the outlook for Sea-Tac
Airport, Mr. Anderson noted that as financial challenges are likely to persist for the
airline industry, staff is currently assuming no passenger growth for 2010. 
Mr. Anderson also reviewed key assumptions for both airline and non-airline revenues as
well as expected trends and risks for 2010. 
Ms. Buringrud then provided a brief preview of the Seaport Division budget for 2010,
noting that the operating revenue is projected to be approximately flat compared to the
2009 budget. She also commented on primary components of revenue for the division. 
Reviewing key revenue assumptions, Ms. Buringrud commented that an 8% decrease
from the 2009 budget is expected for TEU volumes. She also noted that there is a 6%
increase of cruise passengers expected. Regarding the expense budget, Ms. Buringrud
stated that staff is looking at potentially a 10% reduction. 
Ms. Buringrud also provided a preview of the 2010 budget for the Real Estate Division,
noting that operating revenues are expected to be flat or up slightly relative to the 2009
budget. 
Responding to a question from Commissioner Davis regarding possible income from the
use of Terminal 91 for the 6 month period of time when there are no cruises, Ms.
Buringrud stated that there are no plans in the current forecast, but the possibility is being
explored. 
Commissioner Davis reiterated her hope that at some point, an elevator would be
installed at the T91 facility, which would enable a greater use of the space, and noted that
doing so may be an expense that would need to be incurred. 
Ms. Buringrud reviewed upcoming expense trends and risks, which included deferred
maintenance projects, tenant improvements, and unknowns related to both the Eastside
Rail Corridor as well as audit implications. 
Mr. Tong then briefly reviewed payroll assumptions for 2010, noting that currently the
average pay for performance is expected to be 3.75% and a salary range increase of 1.5%.
He commented on the expected reduction in benefit costs, with an average benefit rate
projected at 38.7%. He also pointed out that staff would be able to provide a better
forecast by the end of August. 
Mr. Tong commented on other budgeting issues, which included: 
Revenue assumptions, which are yet to be finalized 
Sustainable O&M cost reductions 
Voluntary separation program 
FTE reductions 

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Majority of severance costs recognized in 2009, so will not hit 2010 budget 
Mr. Tong then reviewed the proposed 2010 budget calendar for the next several months. 
Commissioner Bryant mentioned dates that he anticipated being held for Budget
Workshops as follows: Tax levy workshop  September 15 and 29, with the September
29 meeting to include a preliminary discussion of the plan of finance; Operating and
Capital Budgets  October 8; Draft Plan of Finance and Tax Levy  October 13.
Commissioner Bryant also stated his concern that the current schedule may not allow
sufficient time between first and second readings of the 2010 budget resolution. 
Commissioner Bryant suggested that staff might make themselves available for
discussion regarding the preliminary budget working document on October 20, which
would be followed by the release of the preliminary budget document on October 27.
The first reading of the budget resolution would then occur on November 10, and the
second reading on November 24. He also stated that he would prefer to have 3 weeks
between first and second readings, if possible. Staff noted that this could necessitate
having a special meeting on November 30, as the budget document needs to be filed by
December 1. 
c.   (01:38:28) Seaport 2010 Business Plan Overview 
Presentation documents: Commission agenda memorandum dated July 28, 2009 and
computer slide presentation from Phil Lutes, Deputy Director, Seaport Division; and
Wayne Grotheer, Director, Seaport Professional and Technical Services 
Presenters: Mr. Lutes and Mr. Grotheer 
The overview of the Seaport Division 2010 Business Plan included: 
Seaport strategies for 2010 
o Protecting current business 
o Positioning for recovery and change in the container shipping market 
o Collaborating with others to advance key initiatives 
Critical work for 2010 
o Deliver service to customers 
o Deliver on commitments  clean truck plan and customer support plan 
o Development of T91 into a multi-use facility 
2010 Preliminary Capital Plan  Committed and Business Plan Prospective 
Market outlook 
Financial outlook  revenue and expense 
Growth risks 
Business unit major goals 
o Containers 
o Cruise 
o Industrial docks and properties 

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Service units major goals 
o Finance 
o Planning 
o Security 
o Environmental 
Commissioner Tarleton asked, regarding asset evaluation and utilization, whether or not
the Commission would be receiving a presentation on the new system that staff is
developing. Mr. Grotheer responded that it had not been planned, but staff could do so as
part of the budget process. 
d.  (02:04:55) Real Estate 2010 Business Plan Overview 
Presentation documents: Commission agenda memorandum dated July 28, 2009 and
computer slide presentation from Joe McWilliams, Managing Director, Real Estate and
Property Management 
Presenter: Mr. McWilliams 
Mr. McWilliams presented a brief overview of the Real Estate Division structure, noting
that this division had been created about 18 months prior. He noted that the division
includes Port Real Estate Development and Planning; Portfolio Management and
Leasing; Harbor Services; Pier 69 Facilities Management; and Marine Maintenance. 
Mr. McWilliams commented on the importance of addressing deferred maintenance
items, stating that currently there is about $20 million in deferred maintenance.
Commissioner Bryant asked whether a list of prioritized deferred maintenance projects
was available. Mr. McWilliams responded that there is such a list and that it would be
provided to the Commissioners immediately. 
Mr. McWilliams reviewed what each of the groups within the Real Estate Division have
been working on, as well as some of the challenges they are facing. 
10. ADJOURNMENT 
There being no further business, the meeting was adjourned at 5:05 p.m. 
(A digital recording of the meeting is available on the Port's website.) 

Lloyd Hara 
Secretary 


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