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                              206.787.3000 

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 
Please note that the October 6, 2009 meeting has 2 separate audios 
(The approximate point in the audio recording for the specific item is identified by
minutes and seconds; example: 01:30.) 
APPROVED MINUTES 
COMMISSION REGULAR MEETING OCTOBER 6, 2009 
The Port of Seattle Commission met in a regular meeting at 1:00 p.m., Tuesday, 
September 1, 2009 in the Commission Chambers at Pier 69, 2711 Alaskan Way, Seattle,
WA. Commissioners Bryant, Davis, Hara and Tarleton were present. Commissioner
Creighton was absent. 
1.     CALL TO ORDER 
The regular meeting was called to order at 12:03 p.m. by Bill Bryant, Chair and
President. 
2.     EXECUTIVE SESSION pursuant to RCW 42.30.110 
The meeting was immediately recessed to an Executive Session for approximately one
hour to discuss Real Estate and Legal Risk matters (RCW 42.30.110 (1)(i)(c)) and
reconvened to open public session. 
PLEDGE OF ALLEGIANCE 
3.     APPROVAL OF MINUTES 
(Audio part 1 -00:01:02) Motion for approv al of the minutes of the August 11 
regular meeting - Davis 
Second  Hara 

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PORT COMMISSION MINUTES OF THE REGULAR MEETING 
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Motion carried by the following vote: 
In Favor: Bryant, Davis, Hara, Tarleton (4) 
Commissioner Creighton was absent for the vote 
Motion for approval of the minutes of the August 18 special meeting  Hara 
Second  Davis 
Motion carried by the following vote: 
In Favor: Bryant, Davis, Hara (3) 
Commissioner Tarleton was absent from the subject meeting 
Commissioner Creighton was absent for the vote 
Motion for approval of the minutes of the August 24 special meeting and the August
25 regular meeting  Tarleton 
Second  Hara 
Motion carried by the following vote: 
In Favor: Davis, Hara, Tarleton (3) 
Commissioner Bryant was absent from the subject meetings 
Commissioner Creighton was absent for the vote 
4.    SPECIAL ORDER OF BUSINESS 
None. 
5.    (00:03:13) UNANIMOUS CONSENT CALENDAR 
a.  Authorization for the Chief Executive Officer to issue Change Order No. 0102
for the Consolidated Rental Car Facility (RCF) in the amount of $302,885. 
Request document: Commission agenda memorandum dated September 28, 2009 from
Ralph Graves, Managing Director, Capital Development Division 
b.  Authorization for the Chief Executive Officer to issue Changer Order No. 0105
for the Consolidated Rental Car Facility (RCF) in the amount of $583,570. 

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PORT COMMISSION MINUTES OF THE REGULAR MEETING 
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Request document: Commission agenda memorandum dated September 25, 2009 from
Ralph Graves, Managing Director, Capital Development Division 
c.  Authorization for the Chief Executive Officer to execute a Letter of
Understanding (LOA) between the Port of Seattle and the International Union
of Operating Engineers Local No. 286 representing Operating Engineers in
Aviation Maintenance. 
Request document: Commission agenda memorandum dated September 25, 2009 from
Gary Schmitt, Labor Relations Manager 
Motion for approval of Consent Calendar Items 5a-5c  Tarleton 
Second: Davis 
Motion carried by the following vote: 
In favor: Bryant, Davis, Hara, Tarleton (4) 
Commissioner Creighton was absent for the vote 
6.   DIVISION, CORPORATE AND COMMISSION ACTION ITEMS 
a.  (00:04:01) Resolution No. 3629, First Reading. 1) Declaring real property
known as the 3-acre parcel (King County Parcel 322304-9332) surplus and no
longer needed for Port district purposes, and; 2) Authorization for the Chief
Executive Officer to execute all necessary documents for the sale of the real
property interests to the Highline School District. 
Request document: Commission agenda memorandum dated September 2, 2009 from
James R. Schone, Director, Aviation Business Development and W. Allan Royal,
Manager, Port Real Estate Development. Also provided were a map of the property and
a copy of the purchase and sale agreement. 
Presenter: Mr. Royal 
Mr. Royal provided background information on the related piece of property to be, noting
that it had been in possession of the Airport since 1942, and that since the construction of
SR 509, there had not been any use identified for Port purposes. He stated that Highline
School District has had a desire to obtain this property for a long time, and that they are
currently in the position to do so. 
Public comment regarding Item 6a was received from the following: 
Peter Folkins, Consultant to Highline School District. Mr. Folkins read into the
record a statement on behalf of the Highline School District supporting the sale of

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this property to the school district. A written copy of Mr. Folkins' remarks is, by
reference, made a part of these minutes, is marked as Exhibit 'A,' and is on file in
Port offices. 
Commissioner Bryant then declared the meeting to be an open public hearing, and seeing
no further comment, the public hearing was closed and returned to the Port Commission
meeting. 
Motion for Resolution No. 3629, First Reading; and Authorization for the Chief
Executive Officer to execute all necessary documents for the sale of the real
property interests to the Highline School District - Hara 
Second  Davis 
Motion carried by the following vote: 
In Favor: Bryant, Davis, Hara, Tarleton (4) 
Commissioner Creighton was absent for the vote. 
b.   Resolution No. 3630, First Reading. Providing acquisition by purchase and/or
condemnation of certain real property located at 14431 Des Moines Memorial
Drive South (King County Tax ID Number 202304-9177), in the City of Burien,
Washington. 
Request document: Commission agenda memorandum dated September 1, 2009 an map 
from James R. Schone, Director, Aviation Business Development and Jude P. Barrett,
Manager, Acquisitions and Relocation 
Presenter: Luis Navarro, Manager, Aviation Properties 
Mr. Navarro provided background on the location of the property, stating that it is located
within the Day Night Limit noise contour at the Airport, which necessitates the proposed
acquisition. He stated that the property had been appraised, but an agreement on the
price had not been reached with the owner. Responding to Commissioner Tarleton's
question about the nature of the disagreement, Mr. Navarro replied that there was a
significant difference in the appraisal amounts arrived at by the Port and the one provided
by the owner, and that a mutual agreement of the price was needed. 
Motion for Resolution No. 3630, First Reading. Providing acquisition by purchase
and/or condemnation of certain real property located at 14431 Des Moines
Memorial Drive South (King County Tax ID Number 202304-9177), in the City of
Burien, Washington  Tarleton 
Second  Davis 

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Motion carried by the following vote: 
In Favor: Bryant, Davis, Hara, Tarleton (4) 
Commissioner Creighton was absent for the vote 
7.   STAFF BRIEFINGS 
(00:17:08) Prior to remaining scheduled agenda items, Dave Soike, Deputy Director,
Aviation Division, provided a pre-brief on several items which would be coming forward
to the Commission over the next month.
Upcoming requests which were briefly reviewed by Mr. Soike included: 
Extensions to leases with rental car companies which are due to expire at the end
of this year. Lease extensions would allow these companies to operate in the
Airport garage until the Rental Car Facility is completed. 
Extension of a contract approved approximately 18 months ago for environmental
field support services at the Airport. 
Shuttle bus procurement related to the Rental Car Facility. 
Authorization for stormwater facility improvements at the Airport to meet
NPDES requirements. 
8.   NEW BUSINESS 
(00:22:59) Before moving on to the Budget Workshop, public comment was received
from Tom Albro regarding potential flooding of the Green River Valley and the possible
short-term rental of vacant port properties to businesses in that area. Mr. Albro provided
written comments, a copy of which is, by reference, made a part of these minutes, is
marked Exhibit 'B,' and is on file in Port offices.
A brief recess was called for by Commissioner Bryant at 1:42 and the meeting was
reconvened at 1:54 p.m. 
9.   POLICY ROUNDTABLE 
a.  (Audio part 2  00:00:14) Discussion of Aviation Seaport and Real Estate
Operating and Capital Budgets 
Presentation documents: Commission agenda memorandum dated September 30, 2009
from Borgan Anderson, Finance and Budget Manager, Aviation Division and Boni
Buringrud, Finance & Budget Manager, Seaport Division. Also provided were computer
slide presentations from the Aviation Division, the Seaport Division and the Real Estate 
Division. 

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TUESDAY, OCTOBER 6, 2009                          P. 6 
Presenters: Mark Reis, Managing Director, Aviation and Mr. Anderson (Aviation); Joe
McWilliams, Managing Director, Real Estate and Property Management and Ms.
Buringrud (Real Estate); and Charlie Sheldon, Managing Director, Seaport and Ms.
Buringrud (Seaport) 
Aviation Division 
Mr. Reis referenced the two lines of business at the Airport  the airline side and the nonairline
side, and that the focus of each of them for 2010 is to try to address the following
objectives: On the airline side, the focus continues to be ways to reduce the cost per
enplanement (CPE) and on the non-airline side, the focus is to grow the net operating
income (NOI). He also noted that at the division -wide level, there is the effort to
maintain at least 10 months of operating and maintenance (O&M) on the balance sheet in
unrestricted cash and investments as a cushion. 
Mr. Reis stated that no increase to enplanements is anticipated.  He also noted that nonairline
revenues are projected to be down 8.3% from the budget which was approved last
fall but are only down .7% from the 2009 projected actuals. Also, the airline revenues
are projected to be up 4.5% due to increases capital costs. 
Regarding expenses, Mr. Reis noted that the targeted 5% reduction had been achieved
(over the 2009 approved budget) with only two exceptions. 
Mr. Anderson provided background information on how the division had achieved the
5% reduction over the 2009 budget numbers and significant budget cuts which had been
necessary in order to meet that goal. He noted that few costs are directly tied to
enplanements, and that most revenues are driven by the economic climate. He
commented on cuts needed to be made to reach the budget target, which impacted a
number of departments, including operations, utilities, facilities and infrastructure, and
maintenance. 
Responding to Commission Tarleton's question as to the number of people who might
come to the Airport by use of light rail, Mr. Reis stated that predictions by Sound Transit
indicate that 60% of those who use light rail will be employees. 
Commissioner Hara commented on the possibility of increasing advertising to bump up
revenues and Mr. Reis responded that the demand for advertising has actually gone
down. 
Mr. Anderson reviewed the division budget summary vs. the divisional financial goals,
and also provided an overview of the capital budget through 2014. 
Risks were discussed, which included the fact that economic conditions remain uncertain
which may result in airlines adjusting their schedules further. On the other hand as an
opportunity, it was noted that should the economy improve, a result could be an increase
in enplanements as well as non-airline revenues. 

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Another topic discussed was possible impacts to the Airport should there be flooding this
winter due to issues with the Howard Hanson Dam. Mr. Anderson noted that it was
believed the Airport would be able to function fully as far as the aspect of receiving fuel,
but it could be extremely serious should there be power lost to the Airport. He talked
about the need for some provision of backup power in case this occurs. 
Real Estate Division 
Ms. Buringrud began the presentation by reviewing 2010 Key Assumptions for the Real
Estate Division, which include decreases in occupancy of several Port properties. She
then reviewed the division revenues, broken out by group. 
On the expense side, it was noted that payroll costs will be going up as well as electric
rates. Also addressed was the budget increase for implementing a deferred maintenance
plan. Ms. Buringrud also stated that there is expected to be an increase in environmental
reserves due to an obligating event occurring in 2010. 
Ms. Buringrud and Mr. McWilliams addressed the need for adjustments to Full-Time
Equivalent (FTE's) positions in order to prepare for the 2010 budget, noting that some 
staff was transferred, some took advantage of the Voluntary Separation Program (VSP),
and some were affected as a result of layoffs. 
Ms. Buringrud noted that the Maintenance Staff supports both the Real Estate and
Seaport Divisions, so those dollars are split in the budgeting process. 
While reviewing the Real Estate budget summary, Ms. Buringrud noted that overall, in
looking at the Net Operating Income (excluding environmental grants and reserve), that
relative to the 2009 budget, Real Estate Division is within $146,000 of that budget. 
Ms. Buringrud reviewed possible upcoming risks, which included the current economic
downturn and how that could impact vacancies and tenants' ability to pay; unknowns
with the Eastside Rail Corridor; unexpected maintenance work; an electrical rate
increase; and performance audit implications. 
The Real Estate Capital Budget was then discussed for 2010-2014 and also 2015-2019.
Projects within various categories were reviewed, such as Under Contract, Commission
Authorized; Division Pending, and Business Plan Prospective (both Revenue/Capacity
Growth and Renewal/Enhancement). 
Responding to Commissioner Hara's question about when it is expected that this division
will become profitable, Mr. McWilliams answered the expectation is 5 to 6 years, partly
due to the fact that the economy needs to begin to recover first. Commissioner Hara
commented on the importance of maximizing the utilization of Port assets. 


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TUESDAY, OCTOBER 6, 2009                          P. 8 
Seaport Division 
Mr. Sheldon noted the three Seaport strategies for 2010: 
Protect our current business 
Position ourselves for recovery and change in the container shipping market 
Collaborate with others to advance our key initiatives 
He also spoke of critical work for 2010: 
Maintain high performance levels for critical functions 
Deliver on commitments: 
o NW Ports Clean Air Strategy 
o Clean Truck Plan 
o Container Terminal Customer Support Plan 
Continue transition and development of T-91 into a multi-use facility 
Adjust and align resources to meet business strategies 
Mr. Sheldon reviewed Key Assumptions for 2010 used in creating the budget, as well as
some of the upcoming expense issues, which include asset evaluation and repairs &
improvements. 
Ms. Buringrud reviewed Revenues, broken out by groups, which include containers &
support properties and cruise and industrial properties. In addressing the expense budget,
she noted that there have been staffing reductions, which results in a flat payroll cost
despite upcoming salary increases. She also stated that in 2009 there were some large
recurring expenses which would not be taking place in 2010, or have been reclassified.
Ms. Buringrud reviewed the budget summaries for containers & support properties;
cruise; and industrial docks & properties as well as potential upcoming risks. 
A review of the Seaport Division's 2010 preliminary capital budget was provided and
included information on projects; committed; under contract; Commission authorized;
division pending; and business plan prospective, for revenue/capacity growth;
renewal/enhancement, and environmental/safety. 
Following regular business on the agenda, Commissioner Bryant announced that the next
Commission meeting would be held on Thursday, October 8 in Commission Chambers
and would take place from 9:00-11:00 a.m. 
Commissioner Davis reported that recently, following her trip to Asia with CEO
Yoshitani, a group of people from China who had been involved with the eco-partnership
event there, had visited the Port of Seattle last week. 


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10. ADJOURNMENT 
There being no further business, the meeting was adjourned at 3:57 p.m. 
(A digital recording of the meeting is available on the Port's website.) 

Lloyd Hara 
Secretary 















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