Minutes
Approved
P.O. Box 1209 Seattle, Washington 98111 www.portseattle.org 206.787.3000 APPROVED MINUTES COMMISSION SPECIAL MEETING MARCH 14, 2023 The Port of Seattle Commission met in a special meeting Tuesday, March 14, 2023. The meeting was held at the Port of Seattle Headquarters Building – Commission Chambers, Pier 69, 2711 Alaskan Way, Seattle Washington, and virtually on Microsoft Teams. Commissioners Calkins, Cho, Felleman, Hasegawa, and Mohamed were present. 1. CALL to ORDER The meeting was convened at 10:00 a.m. by Commission President Sam Cho. 2. EXECUTIVE SESSION pursuant to RCW 42.30.110 The public meeting recessed into executive session to discuss one matter regarding litigation/or potential litigation/or legal risk, per RCW 42.30.110(1)(i) for approximately 55 minutes, and two items related to the performance of a public employee per 42.30.110(1)(g), with the intention of reconvening the public session at 12:00 p.m. Following the executive session, the public meeting reconvened at 12:11 p.m. Commission President Cho led the flag salute. 3. APPROVAL of the AGENDA The agenda was approved as amended without objection. (Item 4a was removed from the agenda, to be brought back at a later date, and Item 8l was pulled from the Consent Agenda, to be discussed separately.) In favor: Calkins, Cho, Felleman, Hasegawa, and Mohamed (5) Opposed: (0) 4. SPECIAL ORDERS OF THE DAY – None. 5. EXECUTIVE DIRECTOR’S REPORT Executive Director Metruck previewed items on the day’s agenda and made general and meetingrelated announcements. Digital recordings of the meeting proceedings and meeting materials are available online – www.portseattle.org. PORT COMMISSION MEETING MINUTES TUESDAY, MARCH 14, 2023 6. Page 2 of 9 COMMITTEE REPORTS Commission Strategic Advisor Erica Chung provided a report regarding discussions held at the Sustainability, Environment, and Climate Committee meeting and the Portwide Arts and Culture Board meeting held respectively on February 21, 2023. She also reported regarding the external Joint Advisory Committee and the Commission’s Equity and Workforce Development Committee meetings held respectively on March 2, 2023, and the Waterfront and Industrial Lands Committee meeting held on March 8, 2023. Sustainability, Environment, and Climate Committee The Sustainability, Environment, and Climate Committee convened by Commissioners Hasegawa and Felleman met on February 21, 2023, and were briefed on proposed tree and forest management principles, including existing programs and gaps. Commissioners discussed measurements for benchmarking and consistency purposes. Commissioners also discussed maintenance strategies for the overall forest and habitat health. The Committee also received a briefing on the SEA Gateway – North Main Terminal Redevelopment Program and an overview of the project, sustainable evaluation framework analysis, and recommendations on next steps. Portwide Arts Board The Portwide Arts and Culture Board met on February 21, 2023, with Commissioners Felleman and Cho participating. Several new members joined the board and members were briefed on the purview and role of the board. The board further received an update from the Senior Art Program Manager on projected Capital Improvement Program spending on art projects and they discussed the 2023 committee workplan. Joint Advisory Committee On Thursday, March 2, 2023, Deputy Mayor Negusse led the first Joint Advisory Committee (JAC) meeting of the year. Commissioners Felleman and Mohamed were in attendance. The agenda included updates regarding how the Interlocal Agreement (ILA) is working; an update on the Municipal Court ILA between the Port and SeaTac; a 2023 legislative session update; and continued discussions regarding North SeaTac Park. Equity and Workforce Development Committee On March 2, 2023, Commissioners Hasegawa and Calkins convened the Equity and Workforce Development Committee. Commissioners were joined by Economic Development Division staff and consultants from Intelligent Partnerships, who delivered a presentation on the Port’s WMBE analysis. This presentation consisted of a preliminary review of the barriers faced by WMBE businesses in working with the Port, and some suggested options for lowering these barriers. Commissioners noted the scale of the challenges presented in the analysis and the need to think creatively and strategically to address these barriers. Staff are still working to finalize the analysis and will distribute it to Commissioners when it is available. Waterfront and Industrial Lands Committee Commissioners Felleman and Calkins convened the Waterfront and Industrial Lands Committee on March 8, 2023. The Committee received a presentation on real estate near the north harbor and provide direction to staff. Minutes of October 27, 2020, submitted for review on November 5, 2020, and proposed for approval on November 10, 2020. PORT COMMISSION MEETING MINUTES TUESDAY, MARCH 14, 2023 7. Page 3 of 9 PUBLIC COMMENT Public comment was received from the following individual(s): • • • • • • • The following person spoke regarding port ethical standards: Alex Tsimerman. The following people spoke in support of Agenda Item 8l and in support of the tourism funding: Liz Johnson, Director of International Tourism, Visit Seattle; and David Blandford, Washington State Tourism CEO. The following person spoke regarding free speech and addressing government: Marguerite Richard. The following person spoke regarding water treatment and maintenance of boilers: Steven Lindstrom. The following people spoke regarding Port Covid-19 vaccination policies: James Jennings (written comment also submitted); Kathleen Moriarty; Gail Abe; and Wiley Duerson. The following person spoke in opposition to Agenda Item 8l, and regarding her climate concerns: Dr. Elizabeth Burton. In lieu of spoken comment, written comment urging the Port not to approve additional tourism funding through the approval of Agenda Item 8l and environmental considerations related to air and cruise travel were submitted by Robin Briggs, resident. [Clerk’s Note: All written comments are combined and attached here as Exhibit A.] 4. SPECIAL ORDERS OF THE DAY 4a. Annual Executive Director Performance Review (This item was removed from the agenda and will be brought forward at a later time.) 8. CONSENT AGENDA [Clerk’s Note: Items on the Consent Agenda are not individually discussed. Commissioners may remove items for separate discussion and vote when approving the agenda.] 8a. Approval of Minutes of the Special Meeting of February 14, 2023, and the Special Meeting of March 2, 2023. 8b. Approval of the Claims and Obligations for the Period February 1, 2023, through February 28, 2023, Including Accounts Payable Check Nos. 947084 through 947451 in the Amount of $3,569,951.18; Accounts Payable ACH Nos. 052425 through 053144 in the Amount of $46,527,068.37; Accounts Payable Wire Transfer Nos. 015995 through 016006 in the Amount of $10,790,274.25; Payroll Check Nos. 205618 through 206046 in the Amount of $238,397.08; and Payroll ACH Nos. 1120043 through 1124398 in the Amount of $13,484,546.07, for a Fund Total of $74,610,236.95.. Request document(s) included an agenda memorandum. 8c. Authorization for the Executive Director to Advertise, Award, and Execute a Major Works Construction Contract for the Communication Enhancement Project at SeattleTacoma International Airport, and to Use Port of Seattle Crews for Construction Activities, in the Amount of $7,840,000, Fully Authorizing the Estimated Project Budget of $11,000,000. (CIP# C801161). Minutes of October 27, 2020, submitted for review on November 5, 2020, and proposed for approval on November 10, 2020. PORT COMMISSION MEETING MINUTES TUESDAY, MARCH 14, 2023 Page 4 of 9 Request document(s) included an agenda memorandum and presentation. 8d. Authorization for the Executive Director to Proceed with a Revised Project to Replace the Port Badge System and to Execute Contract(s) for Software, Equipment, Vendor Services, and Ten Years of Software License and Maintenance Fees, for a Revised System Replacement Scope in the Amount of $4,200,000, and a Total Estimated Project Cost of $5,000,000. (CIP# C801201). Request document(s) included an agenda memorandum. 8e. Authorization for the Executive Director to Execute a Contract for Network Firewall Support for a Period Not-to-Exceed Ten Years in an Amount Not-to-Exceed $3,500,000 Over the Ten-Year Period. Request document(s) included an agenda memorandum. 8f. Authorization for the Executive Director to Proceed with Construction of the SEA Load Dock Access Control N04456 Project, and to Use Port Crews, as Well as Small Works On-Call Contracts to Perform Construction Work for the Project, in the Amount of $325,000, and an Estimated Project Cost of $405,000. (CIP# C801357) Request document(s) included an agenda memorandum. 8g. Authorization for the Executive Director to Approve a Budget Increase of $150,000 to the Existing Small Capital Project at the Marine Maintenance South Office to Expand Electrical Service Capacity, for a Revised Project Cost Not-to-Exceed $450,000; and to Use Port Crews to Complete Construction. (CIP# C801088) Request document(s) included an agenda memorandum and presentation. 8h. Authorization for the Executive Director to Complete Design and Construction of the Air Cargo Building 167A/B Access Controls Project at Seattle-Tacoma International Airport, in the Amount of $1,920,000, and a Total Estimated Project Cost of $2,000,000. (CIP# C801288). Request document(s) included an agenda memorandum and presentation. 8i. Authorization for the Executive Director to Increase the Project Budget by $1,000,000 for a Revised Total Budget of $3,000,000; and to Prepare Design and Construction Bid Documents for the Sanitary Pipe Replacement Project in the Amount of $600,000, for an Estimated Total Project Cost Not-to-Exceed $3,000,000. (CIP# C801239) Request document(s) included an agenda memorandum and presentation. Minutes of October 27, 2020, submitted for review on November 5, 2020, and proposed for approval on November 10, 2020. PORT COMMISSION MEETING MINUTES TUESDAY, MARCH 14, 2023 8j. Page 5 of 9 Authorization for the Executive Director to Proceed with the Design and Preparation of Contract Bid Documents in the Amount of $1,360,000 for the Landside Pavement Program Project Located at Seattle-Tacoma International Airport and to Authorize $3,860,000 for the Construction of Pavement Rehabilitation Scope as Part of the Widen Arrivals Roadway Major Work Construction Contract, for a Total Amount Requested of $5,220,000 and a Total Estimated Project Cost of $10,000,000 for the Landside Pavement Program. (CIP# C801042) Request document(s) included an agenda memorandum and presentation. 8k. Authorization for the Executive Director to Advertise and Execute a Project Specific Contract for Design Services, to Develop a Project Definition Document and Progress the Overall Design to 30 Percent, and to Utilize Port Crews for Enabling Work Related to the Concourse HVAC Infrastructure Renewal and Replacement Program Project at the Seattle-Tacoma International Airport, in the Amount Requested of $7,000,000 and the Anticipated Total Project Cost to be Determined During Project Definition. (CIP# C801265) Request document(s) included an agenda memorandum and presentation. 8l 1. Authorization for the Executive Director to Approve a Contract with State of Washington Tourism Designated for Collaborative International Tourism Marketing Efforts in the Amount of $800,000. Request document(s) included an agenda memorandum and presentation. 8m. Commission Approval of International Travel Requests – Second Quarter 2023. Request document(s) included an agenda memorandum. The motion for approval of consent agenda items 8a, 8b, 8c, 8d, 8e, 8f, 8g, 8h, 8i, 8j, 8k, 8l, and 8m carried by the following vote: Commissioner Calkins commented regarding Agenda Item 8j, referring to the original approval of the project - noting there has not been a material change in the project and speaking to preconceptions of the project and efforts of the mode shift access plan. Commissioner Felleman commented regarding opportunities to facilitate light rail and moving sidewalks. He also commented regarding Agenda Item 8k, using the Sustainable Evaluation Framework to provide a full evaluation, and the opportunity for Commission to review options. In favor: Calkins, Cho, Felleman, Hasegawa, and Mohamed (5) Opposed: (0) 1 Agenda Item 8l was removed from the Consent Agenda and addressed separately. Minutes of October 27, 2020, submitted for review on November 5, 2020, and proposed for approval on November 10, 2020. PORT COMMISSION MEETING MINUTES TUESDAY, MARCH 14, 2023 Page 6 of 9 ITEMS REMOVED FROM THE CONSENT AGENDA 8l. Authorization for the Executive Director to Approve a Contract with State of Washington Tourism Designated for Collaborative International Tourism Marketing Efforts in the Amount of $800,000. Request document(s) included an agenda memorandum and presentation. Presenter(s): Dave McFadden, Managing Director, Economic Development Division Nick Leonti, Director, Tourism Development Clerk Hart read Item 8l into the record. Executive Director Metruck introduced the item and presenters. Members of the Commission received a presentation from staff. Commission and Staff discussion ensued regarding: • how the Port balances its tourism plan and strategy with its environmental goals; • transformation of industries to support environmental goals and incorporation of clean fuels; • how international travelers can participate in the Port’s mission to move people and goods, the Port’s ‘Good Traveler’ program, and if international travelers are participating in that program; • budgeting of tourism dollars; • partnerships with others statewide for tourism; • marketing the entire tourism economy; • hospitality industry benefits from tourism; • promoting sustainable tourism; • using Return on Investment as a metric; • creating the ability for industries to adopt the highest environmental standards, methods, and practices and for the cost of tourism to cover the cost of implementing those standards; and • marketing tourism to Asia. The motion, made by Commissioner Mohamed, carried by the following vote: In favor: Calkins, Cho, Felleman, Hasegawa, and Mohamed (5) Opposed: (0) 10. NEW BUSINESS 10a. Authorization for the Executive Director to Advertise and Award up to Three Major Public Works Contracts; to Execute Utility Agreements for the Relocation of Utilities; to Transfer $527,000 of Budget from CIP# C800862 Terminal Security Enhancements to Support the Installation of Security Bollards; to Transfer up to $3,860,000 of Budget Minutes of October 27, 2020, submitted for review on November 5, 2020, and proposed for approval on November 10, 2020. PORT COMMISSION MEETING MINUTES TUESDAY, MARCH 14, 2023 Page 7 of 9 from CIP# C801042 Landside Pavement Program to Support Additional Pavement Rehabilitation, and to Authorize an Additional $73,600,000 for a Total Project Authorization of $89,500,000 for the Widen Arrivals Roadways Project at SeattleTacoma International Airport. (CIP# C800866) Request document(s) included an agenda memorandum and presentation. Presenter(s): Arif Ghouse, Chief Operating Officer, Airport Director’s Office Heather Bornhorst, Capital Program Leader, AV Project Management Group Peter Lindsay, Senior Manager, Airport Operations Adrian Down, Environmental Program Manager, AV Environmental Programs Group Clerk Hart read Item 10a into the record. Executive Director Metruck introduced the item and presenters. A presentation was provided to the Members of the Commission. The presentation addressed: • Century Agenda strategic objectives applicable to the project; • the Ground Transportation Framework; • project scope and location; • project rationale and current project status; • budget and schedule; • partnering with External Relations and project communications; and • requested authorization for additional funding to continue the project. Members of the Commission and staff discussed: • a study being conducted by the National Renewable Energy Laboratory (NREL) to model traffic flows across multiple modes; • how this project accommodates anticipated volume; • separate access for TNCs and other ride shares; • reducing private occupancy vehicle trips; • how the project impacts stormwater; • status of Port efforts to coordinate with employers to provide ORCA passes for their employees and beginning conversations in the Aviation Committee to develop the program; • additional increases in cost associated with stormwater management; • measures in place to address additional project cost escalation; • light rail to terminal access; • federal funding possibilities; and • talking with airlines to survey employees regarding their needs for transportation. The motion, made by Commissioner Calkins, carried by the following vote: In favor: Calkins, Cho, Felleman, Hasegawa, and Mohamed (5) Opposed: (0) Minutes of October 27, 2020, submitted for review on November 5, 2020, and proposed for approval on November 10, 2020. PORT COMMISSION MEETING MINUTES TUESDAY, MARCH 14, 2023 Page 8 of 9 11. PRESENTATIONS AND STAFF REPORTS 11a. 2022 Financial Performance Briefing. Presentation document(s) included an agenda memorandum, report and presentation. Presenter(s): Dan Thomas, Chief Financial Officer, Finance and Budget Michael Tong, Director Corporate Budget, Finance and Budget Kelly Zupan, Director, Seaport Finance and Budget Stephanie Jones Stebbins, Managing Director, Maritime Division Administration Dave McFadden, Managing Director, Economic Development Division Hanh Nguyen, Interim Director, Aviation Finance and Budget Lance Lyttle, Managing Director, Aviation Director’s Office Commission Clerk Michelle Hart read Item 11a into the record. Executive Director Metruck introduced the item. The presentation addressed: • key highlights of the report: • strong financial performance in 2022 due to prudent budgeting and careful cost management; • 2022 SEA passenger levels were below budget and 11.4 percent lower than 2019; • 2022 cruise season had a record 295 sailings and over 1.3 million passengers; • operating revenues were $43.3M over budget mainly due to higher revenues from Public Parking, Rental Cars, and NWSA Distributable Income; • operating expenses were $23.4M below budget mainly due to a $15.6M non-cash expense credit related accounting for the Port's public pension plans through the Department of Retirement Systems (DRS) - without the credit, operating expenses were just $7.8M under budget; and • Aviation; Seaport; Maritime; Stormwater Utility; Northwest Seaport Alliance (NWSA); Economic Development; Central Services; and Portwide division 2022 financial performance reports. Members of the Commission and staff discussed: • the financial forecast for 2023; • separating ‘Maritime’ and ‘NWSA’ from the ‘non-airport revenue category;’ • operational improvements and Shilshole Bay Marina and previous rate increases; • whether or not there is any cost recovery in the Terminal 5 pile driving joint venture; • cost recovery from cruise lines for infrastructure improvements made and cruise lease agreements; and • accounting of capital projects that go over budget in the capital budget summary. 12. QUESTIONS on REFERRAL to COMMITTEE and CLOSING COMMENTS Commissioner Felleman spoke regarding the need to look strategically at options to grow the Northwest Seaport Alliance. Minutes of October 27, 2020, submitted for review on November 5, 2020, and proposed for approval on November 10, 2020. PORT COMMISSION MEETING MINUTES TUESDAY, MARCH 14, 2023 Page 9 of 9 The motion, made by Commissioner Felleman, to refer the topic of ‘ferry propellers being suplused by the Port and how to repurpose them for art’ to the Portwide Arts and Culture Board, carried by the following vote: In favor: Calkins, Cho, Felleman, Hasegawa, and Mohamed (5) Opposed: (0) 13. ADJOURNMENT There was no further business and the meeting adjourned at 3:05 p.m. Prepared: Attest: Michelle M. Hart, Commission Clerk Fred Felleman, Commission Secretary Minutes approved: March 28, 2023 Minutes of October 27, 2020, submitted for review on November 5, 2020, and proposed for approval on November 10, 2020.
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