Minutes
Commissioners Ted Fick Chief Executive Officer Stephanie Bowman Commission Co-President Courtney Gregoire P.O. Box 1209 Commission Co-President Seattle, Washington 98111 Tom Albro www.portseattle.org Bill Bryant 206.787.3000 John Creighton APPROVED MINUTES COMMISSION REGULAR MEETING OCTOBER 14, 2014 The Port of Seattle Commission met in a regular meeting Tuesday, October 14, 2014, at Port of Seattle Headquarters, Commission Chambers, 2711 Alaskan Way, Seattle, Washington. Commissioners Albro, Bowman, Bryant, Creighton, and Gregoire were present. Commissioner Bryant was absent after 2:57 p.m. 1. CALL TO ORDER The regular meeting was called to order at 1:11 p.m. by Courtney Gregoire, Commission Co- President. 2. EXECUTIVE SESSION pursuant to RCW 42.30.110 None. PLEDGE OF ALLEGIANCE 3. SPECIAL ORDERS OF BUSINESS Announcement Commissioner Gregoire announced the first official joint meeting of the ports of Seattle and Tacoma regarding formation of the Seaport Alliance had taken place this morning in the City of Auburn. Both port commissions unanimously ratified the interlocal agreement framework guiding development of the alliance. The alliance will allow the ports to face external competitive threats to the Puget Sound region, and to collaboratively deploy marine cargo assets for regional benefit. 4. UNANIMOUS CONSENT CALENDAR [Clerk's Note: Items on the Unanimous Consent Calendar are considered routine and are not individually discussed. Port Commissioners receive the request documents prior to the meeting and may remove items from the Consent Calendar for separate discussion and vote in accordance with Commission bylaws.] 4a. Approval of the minutes of the special meetings of August 19 and September 11, 2014. -- was laid on the table without objection. [Clerk's Note: The minutes of August 19 and September 11, 2014, were subsequently approved on October 28, 2014.] Digital recordings of the meeting proceedings and meeting materials are available online www.portseattle.org. PORT COMMISSION REGULAR MEETING MINUTES Page 2 of 13 TUESDAY, OCTOBER 14, 2014 4b. Approval of claims and obligations for the period of September 1, 2014, through September 30, 2014, including accounts payable checks nos. 827118-827773 in the amount of $41,460,638.25 and payroll checks nos. P- 177683-177887 in the amount of $8,266,929.74 for a fund total of $49,727,567.99. 4c. Authorization for the Chief Executive Officer to execute a five-year contract with Bombardier Transportation Inc. for an estimated value of $1,900,000. Request document(s) provided by Stuart Mathews, General Manager, Aviation Maintenance: Commission agenda memorandum dated September 12, 2014. 4d. Authorization for the Chief Executive Officer to execute an 18-month agreement with Thanks Again LLC for an airline mileage customer loyalty program on behalf of the Airport Dining and Retail Merchant marketing program for an estimated amount of $60,000. Request document(s) provided by James R. Schone, Director, Aviation Business Development, and Deanna Zachrisson, Business Leader, Airport Dining and Retail: Commission agenda memorandum dated September 19, 2014. Exhibit A: Discussion of SEA Airport Prepayment Terms. Exhibit B: Merchant Loyalty Program. Motion for approval of consent items 4b, 4c, and 4d Bryant Second Creighton Motion carried by the following vote: In Favor: Albro, Bowman, Bryant, Creighton, Gregoire (5) 5. PUBLIC TESTIMONY An opportunity for public comment was provided, but no testimony was offered at this time. 6. DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 6a. First Reading and Public Hearing of Resolution No. 3697: A Resolution of the Port Commission of the Port of Seattle declaring surplus and no longer needed for port district purposes approximately 3.44 acres of Port-owned real property located in the City of Seattle and further authorizing the sale of said real property to TRF Pacific, LLC or its assigns. Request document(s) provided by Mark Griffin, Director, Real Estate Development: Commission agenda memorandum dated September 26, 2014. Presentation slides. Site map of the Tsubota Steel location. Real Estate Purchase and Sale Agreement. Resolution No. 3697. Minutes of October 14, 2014, Regular Meeting proposed for approval on April 28, 2015 PORT COMMISSION REGULAR MEETING MINUTES Page 3 of 13 TUESDAY, OCTOBER 14, 2014 Presenter(s): Mr. Griffin. The Commission received a presentation that included the following relevant information: The site consists of 3.44 acres located on 15th Avenue West, north of Magnolia Bridge and west of the Whole Foods Interbay location. It was acquired in 2005, at a total cost of $6.1 million, with the intention of pursuing nearby acquisitions, including the nearby Armory site to the north, as part of the North Bay planning process, which is no longer active. The site has been under short-term lease since acquisition by the Port, with a current annual yield of $26,000. Staff issued a request for offers (RFO) in February to market the site on an as-is basis, prompted by the growing rebound in the real estate market and several unsolicited purchase offers. A July 2014 appraisal valued the site between $6.4 million and $7.2 million given the need for environmental remediation. The purchase price is $7.2 million. TRF Pacific will buy the site on an as-is, where-is basis and will provide the Port with a full environmental release associated with the environmental condition of the property. Closing is contingent on the buyer's successful completion of a six-month clean-up program. There is no brokerage commission associated with the sale. Staff believes they obtained the approximate market value for the site. The Commission expressed interest in the buyer's future use of the site and potential re-zoning pressures on the location and the surrounding industrial areas. It was reported that TRF Pacific might pursue re-zoning of the property as higher-revenue retail space but, given the City of Seattle's intent of preserving industrial zones, the outcome is not guaranteed and the effects would be minimal, considering the current adjacent commercial uses. In response to Commission comments on the likelihood of acquiring and combining the Tsubota site with the Armory property to the north, it was reported that such an acquisition is unlikely. The gap between the value of the Armory site and the cost of acquiring and building replacement National Guard facilities is too great for the transaction to take place on a cash basis. Regarding site access to the Armory and Tsubota properties, it was reported that TRF Pacific's offer is not contingent on acquiring access to the Tsubota site through the Armory site to Howe Street. Commissioners expressed interest in a strategic plan for use of real estate, and further information on potential uses of the site was requested as a condition of adoption of the resolution on final passage. At issue was whether there were prospects for the Port to develop the site itself. Commissioner Albro indicated that without this information, he was not prepared to support the motion for First Reading. Minutes of October 14, 2014, Regular Meeting proposed for approval on April 28, 2015 PORT COMMISSION REGULAR MEETING MINUTES Page 4 of 13 TUESDAY, OCTOBER 14, 2014 Motion for first reading of Resolution No. 3697 Bryant Second Creighton PUBLIC HEARING Commissioner Gregoire declared the public hearing on Resolution No. 3697 open. There was no testimony at this time, and the hearing was closed. Motion carried by the following vote: In Favor: Bowman, Bryant, Creighton, Gregoire (4) Opposed: Albro (1) 6b. Authorization for the Chief Executive Officer to execute a First Amendment to the Conference and Event Center Management Agreement between the Port and Columbia Hospitality Inc. to expand the premises under its management agreement at the World Trade Center Seattle by 1,448 rentable square feet. Request document(s) provided by Melinda Miller, Director, Portfolio and Asset Management, and Patricia Spangler, Real Estate Manager: Commission agenda memorandum dated October 7, 2014. Presentation slides. First Amendment to Conference and Event Center Management Agreement. Presenter(s): Ms. Miller. The Commission received a presentation that included the following relevant information: The day-to-day operations and marketing of the World Trade Center Seattle and the Port of Seattle's other conference and event facilities aremanaged by Columbia Hospitality, Inc. under a management contract. The proposal would convert 1,448 square feet immediately adjacent to the facility into a members' lounge, providing reliable daily space for members to have lunch. The concept entails a drop-in members' lounge with an auxiliary dining room, two small meeting rooms and a refreshment station. Currently, when there is a buyout or event in the Holland America Dining Room, lunch guests are turned away, causing inconvenience for members. The total estimated project cost for the work associated with the amendment is approximately $80,000. The increase in net present value is projected around $107,000. Minutes of October 14, 2014, Regular Meeting proposed for approval on April 28, 2015 PORT COMMISSION REGULAR MEETING MINUTES Page 5 of 13 TUESDAY, OCTOBER 14, 2014 Motion for approval of item 6b Albro Second Creighton Motion carried by the following vote: In Favor: Albro, Bowman, Bryant, Creighton, Gregoire (5) 7. STAFF BRIEFINGS The following agenda item 7a. 2015 Seaport Division Operating and Capital Budgets Briefing. was temporarily postponed and the Commission advanced to consideration of 7b. 2015 Real Estate Division Operating and Capital Budgets Briefing. Presentation document(s) provided by Joe McWilliams, Managing Director, Real Estate Division, and Boni Buringrud, Director, Seaport Finance and Budget: Commission agenda memorandum dated September 26, 2014. Presentation slides. Presenter(s): Ms. Buringrud. The Commission received a presentation that included the following relevant information: Reorganization The Real Estate division is in the process of being reorganized into a North Harbor Management Group, including Fishermen's Terminal, the Maritime Industrial Center, Shilshole Bay Marina, and other marinas, and a Central Harbor Management Group, including the Harbor Corporate Center (Terminal 102), the Central Waterfront, Terminal 34, Pier 69 leases, Pier 2 Uplands, and other facilities. The former Harbor Services Group will be combined into the Portfolio and Asset Management Group. Water and land sides of key facilities, such as Fishermen's Terminal, the Maritime Industrial Center and Shilshole Bay Marina, will report up to a single senior manager position and reported on as single assets. The new management reporting will be effective with the 2015 performance reports. Key Budget Assumptions Key assumptions for the Real Estate operating budget include marina occupancy at 95 percent and a 3.5 percent market rate increase for recreational marinas. A slight increase in fishing and commercial occupancy rates is projected, with Fishermen's Terminal at 79 percent and the Maritime Industrial Center at 70 percent. Commercial properties forecast 95 percent occupancy in 2015. All of the Port's commercial properties are currently near the 100 percent occupancy rate, with the exceptions of Terminal 2, the Marina Corporate Center, and the World Trade Center West building. The 2015 budget assumes an increased occupancy in these facilities. Minutes of October 14, 2014, Regular Meeting proposed for approval on April 28, 2015 PORT COMMISSION REGULAR MEETING MINUTES Page 6 of 13 TUESDAY, OCTOBER 14, 2014 A forecasted five percent revenue increase depends on keeping the Conference Center updated and refurbished. The 2015 budget includes additional investment to keep facilities updated. Revenue and Expense The Real Estate division revenues total $31.7 million in the 2014 budget, with a forecast of $31.9 million. The 2015 b udget totals $32.8 million, a net increase of $1.1 million, or 3.5 percent. The revenue of the largest Real Estate division group, Portfolio & Asset Management, is projected to rise by $1.3 million, 3.4 percent above the 2014 budget of $30.4 million, to a 2015 total of $31.5 million. This increase is driven by increased revenues in the Conference and Events Center and the North Harbor Management Group, primarily marinas. The Real Estate division's operating expenses for the 2014 budget total $39.8 million, with a forecast of $36.7 million. The 2015 budget totals $40.6 million, an increase of $1.3 million, 3.4 percent. The total baseline budget will experience an increase of 7.4 percent from the 2014 baseline budget of $35.2 million to the 2015 baseline budget of $37.8 million. The increase is driven by the Marine Maintenance group's four additional full-time equivalents (FTEs) in 2015, the utilities baseline increase, and increased costs associated with increased use of the Conference and Events Center. The Real Estate division's overall operating expenses, inclusive of direct charges and allocations from Corporate, CDD and other divisions, totaled $39.3 million in the 2014 budget, with a forecast of $38.3 million, and a 2015 budget of $39.6 million, a 0.7 percent increase. Overall net income in 2015 is expected to improve over the 2014 budget by approximately $907,000. The overall 2015-2019 dollar amount of projects in the Real Estate capital budget stands at $66.2 million, comprised almost entirely of facility renewals or replacements. The 2015 capital budget is projected to be $12.7 million. Full-Time Equivalent (FTE) Positions FTEs are being added to Marine Maintenance in association with new Central Procurement Office requirements and the business unit's need for information, as well as labor and deferred maintenance issues. These positions partially balance the earlier loss to the department of five positions and aim to prevent another maintenance backlog. 2015 FTEs total 171.5, a 3.2 increase over 2014's 168.3. Although budgeted within Real Estate, the expense for Marine Maintenance positions is shared among other divisions. Capital Program The total Real Estate capital budget in 2015 totals $1.5 million, with a total of $29 million, between 2015 and 2019. The Small Projects' capital budget for 2015 stands at $4.3 million, totaling $14.3 million between 2015 and 2019. The demolition of the W50 Building in Terminal 91 will commence in 2015, at an estimated budget of $975,000. Minutes of October 14, 2014, Regular Meeting proposed for approval on April 28, 2015 PORT COMMISSION REGULAR MEETING MINUTES Page 7 of 13 TUESDAY, OCTOBER 14, 2014 The largest capital dollar amount of $27.6 million in 2015 is for Fishermen's Terminal and represents 42 percent of the total. Projects that are Commission authorized or underway total $3.6 million in 2015. Pending 2014/2015 projects total $19.2 million between 2015 and 2019, with the 2015 total standing at $3.2 million. Some have already been brought to the Commission for authorization. The Bell Harbor Marina Wavebreak/Pile Wraps Rehabilitation project has a capital budget of $600,000 and will total $3.8 million between 2015 and 2019. There is a possibility of using the sale proceeds from the Tsubota Steel site transaction to renovate the Shilshole Bay Marina. The Real Estate division is currently vetting several alternatives based on the Commission's comments. Projects pending future Commission authorization consist of projects that require more work before being brought to the Commission and may not be brought forward in 2015. The Commission stated that the proposed FTE additions should be reviewed and examined closely as the Real Estate Division's financial performance continues to struggle. Commissioners inquired about the inclusion of a restaurant at Shilshole Bay Marina. It was reported that recent shoreline legislation changes increased the required setback from the water from 25 feet to 45 feet. Anthony's has been identified as a potential tenant, but construction costs may impede provision of a restaurant at this time. Phasing of work to avoid disruption of the parking lot at Shilshole may complicate combination of restaurant and restroom projects. The Commission expressed interest in the status of a Fishermen's Terminal 25-year plan. It was noted that Fishermen's Terminal represents a centerpiece for the Port's operations as well as a means of increasing the Port's public prominence. Multiple uses would increase the Terminal's public importance. Following consideration of agenda item 7b, the Commission returned to consideration of 7a. 2015 Seaport Division Operating and Capital Budgets Briefing. Presentation document(s) provided by Linda Styrk, Managing Director, Seaport Division, and Boni Buringrud, Director, Seaport Finance and Budget: Commission agenda memorandum dated September 26, 2014. Presentation slides. Presenter(s): Ms. Buringrud. The Commission received a presentation that included the following relevant information: Key Assumptions Key volume assumptions for the 2015 Seaport Division Budget include a TEU (twentyfoot equivalent unit) container volume of 1.3 million, equal to the 2014 forecast, and a cruise forecast of 895,000 passengers, an 11 percent increase from the 2014 budget, driven by Monday homeport rotation by Holland America and larger cruise vessels replacing existing ships. Minutes of October 14, 2014, Regular Meeting proposed for approval on April 28, 2015 PORT COMMISSION REGULAR MEETING MINUTES Page 8 of 13 TUESDAY, OCTOBER 14, 2014 Higher grain volumes are anticipated in 2015, at four million metric tonnes based on general information from the tenant, three million higher than the 2014 forecast. No interim revenue from the vacant Terminal 5 is assumed in this budget. Expense items include costs relating to maintenance dredging, stormwater, the continued implementation of the Northwest Ports Clean Air Strategy, expenses relating to Environmental Remediation Liability, the tribal fishing coordination program, and Terminal 5. As long as Terminal 5 remains unoccupied, the Seaport will continue covering security costs it did not face before, at a cost of half a million dollars, as Terminal 5 represents a valuable Port asset requiring full-time monitoring by three security guards. Revenues and Expenses Total revenues for the 2014 Seaport budget stand at $101.2 million, with a forecast of $94.6 million, and a 2015 budget of $91.4 million, a decrease of 9.7 percent. This decrease is driven by the container revenue decrease of 23.5 percent, from the 2014 budget of $64.8 million to $49.6 million in 2015, due to the closure of Terminal 5. Grain revenue is anticipated to increase by 114.0 percent, from $2.3 million in the 2014 budget to $5 million in 2015, due to increased volume and more favorable lease terms. Total Seaport division expenses stand at $22.9 million in the 2014 budget, with a forecast of $18.8 million. The 2015 b udget anticipates $22.2 million, a decrease of 2.8 percent. Total payroll cost will increase 2.6 percent, from $8 million in 2014 to $8.3 million in 2015. The utilities baseline budget will increase by 9.4 percent, from $6 million in 2014 to $6.6 million in 2015, primarily through increases in stormwater and electricity fees. These increases are partially offset by tenant reimbursement. Without a tenant, there will be no reimbursement for stormwater or utility costs at Terminal 5, which incurred $650,000 in utility costs last year. The total baseline budget stands at $17.5 million in 2014, set to increase by 3.5 percent in 2015, to $18.1 million, in line with Seaport targets. Total 2015 Seaport "one-time" expenses stand at $3.9 million. Total 2015 non-operating expense stands at $10.9 million. The Northwest Ports Clean Air Strategy is listed under Environmental Remediation, under non-operating expenses, due to the Strategy being considered an initiative for the public good. Grants help offset the total expense of the In Place Truck Scrapping Incentive program, reducing the Port's net cost from $4.8 million to $788,000. There is also a potential for a new agency grant, not led by the Port. Seaport operating expenses, inclusive of direct charges and allocations from Corporate, CDD and other divisions, total $43.9 million in the 2014 budget, with a forecast of $39.8 million, and a decrease of 1.6 percent to $43.2 million in 2015. Seaport net operating income, inclusive of direct charges and allocations from Corporate, CDD and other divisions, totals $57.6 million in the 2014 budget, with a forecast of $55.2 million, and a decrease of 16.0 percent in 2015. Minutes of October 14, 2014, Regular Meeting proposed for approval on April 28, 2015 PORT COMMISSION REGULAR MEETING MINUTES Page 9 of 13 TUESDAY, OCTOBER 14, 2014 Capital Program The Seaport capital budget 2015 to 2019 is $365.1 million, an increase of $100 million over the comparable 2014 forecast. The 2015 Seaport capital budget is $22.5 million. Several projects drive the increase, the largest being the Terminal 5 Modernization project and the West Waterway Deepening project. All projects are in accordance with the Port's strategy to increase container volume and be big-ship-ready. The TIGER (Transportation Investment Generating Economic Recovery) grant will provide funding for $20 million of Terminal 46 improvements. Commission-authorized or underway Seaport projects capital budget stands at $12.7 million in 2015 and $244.1 million between 2015 and 2019. Projects have been listed as authorized/underway even if only partially approved; not all costs associated with all projects have been approved yet. The total 2015 pending authorization projects amount to $600,000, with a total of $700,000 between 2015 and 2019. The total pending future authorization projects capital budget stands at $8.1 million in 2015, and $114.3 million between 2015 and 2019. The contingency renewal and replacement capital budget, totaling $35 million between 2015 and 2019, is intended to cover unanticipated projects and cost growth. The Smith Cove Cruise Terminal Shore Power Upgrade project, totaling $1.2 million between 2015 and 2019, is intended to add capacity to the existing system to accommodate larger cruise vessels. The Small Projects capital budget totals $5.9 million between 2015 and 2019, and $1.1 million in 2015. In response to Commission inquiry regarding Harbor Maintenance Tax reimbursement, WRRDA (Water Resources Reform and Development Act) reauthorization this year by Congress resulted in reallocation of $25 million from the Harbor Maintenance Tax regime to broader Port programs. The Seaport is currently discussing the options for pursuing reimbursement. In response to Commission inquiry, the initial costs of the new Seaport Alliance, such as additional consulting and assisting employees in adjusting to the new change, are partially reflected in the Seaport Administration expense of $877,000, but it is still too early to determine the accuracy of any estimates. In response to Commission inquiry, the West Waterway and East Waterway Deepening projects are classified as Priority 2 instead of Priority 1 due to both projects forecasting additional spending to take place in the 2020 to 2024 timeframe as well as the 2015 to 2019, lessening the impact to the 2015-2019 capital plan. In response to Commission inquiry regarding the ability of the Port's infrastructure to support all cruise vessels currently in use, the Second Gangway Per Berth at Terminal 91 project is addressing this question, and staff will analyze the problem further in upcoming months, especially regarding the requirements of a shore power upgrade in light of the new cruise vessels' needs. Before any great investment is made, all alternatives will be reviewed. Minutes of October 14, 2014, Regular Meeting proposed for approval on April 28, 2015 PORT COMMISSION REGULAR MEETING MINUTES Page 10 of 13 TUESDAY, OCTOBER 14, 2014 7c. Briefing on consulting contract for up to $5 million as part of the Federal Aviation Administration's Pilot Program for Redevelopment of Airport Properties, including consideration of parcels in the Northeast Redevelopment Area in the City of Burien. Presentation document(s) provided by Mark Griffin, Director, Real Estate Development: Commission agenda memorandum dated September 19, 2014. Presentation slides. Presenter(s): Mr. Griffin. The Commission received a presentation that included the following relevant information: For several years, the Port of Seattle has cooperated with the City of Burien in planning the City's Northeast Redevelopment Area (NERA), a property of approximately 150 acres. The Port owns approximately 50 acres of the property as part of noise-mitigation efforts associated with construction of the Third Runway. The City of Burien has lobbied to identify federal funds to assist in the redevelopment of noise-impacted properties like the Port's acreage. In February 2013, the Federal Aviation Administration (FAA) issued a program guidance letter (PGL) for airports interested in obtaining funding under a new pilot program for redevelopment of noise property. The PGL encourages applications by airport sponsors, such as the Port, in tandem with other agencies, such as the City, for up to $5 million. The federal share is limited to $4 million, or 80 percent of eligible costs, and a local match for the remaining 20 percent of costs, a maximum of $1 million, is required. In accordance with its interlocal agreement between Burien and the Port, the Port and the City have jointly submitted their application and are awaiting the FAA's review. The FAA expects to award funding in the first quarter 2015, and the proposed scope work is expected to be performed over two to three years. The Port and the City anticipate using funds under the pilot program to fund additional planning design and permitting work associated with redeveloping the property, specifically streets, utilities and stormwater improvements that will further facilitate redevelopment. Part of the work in the NERA includes the Port's granting easementsto the City and contributing costs toward the City's construction of the first phase of a regional stormwater system that will benefit the NERA. Commissioner Bryant was absent after 2:57 p.m. 7d. Policy briefing related to real estate development and construction work on Port-owned land leased to Port tenants. Presentation document(s) provided by Mark Griffin, Director, Real Estate Development: Commission agenda memorandum dated September 29, 2014. Presentation slides. Minutes of October 14, 2014, Regular Meeting proposed for approval on April 28, 2015 PORT COMMISSION REGULAR MEETING MINUTES Page 11 of 13 TUESDAY, OCTOBER 14, 2014 Presenter(s): Mr. Griffin. The Commission received a presentation that included the following relevant information: The Port currently has no policies applying to construction work as contracted by its tenants on Port-owned land, as opposed to work directly contracted by the Port itself. Instead, the Port has labor harmony provisions in most current leases that place responsibility on the tenants for ensuring continuity of service, operations, and the absence of labor disruptions. These provisions neither dictate the means or methods by which labor harmony is achieved, nor require tenants to enter into agreements with labor organizations. In its competitive procurements, the Port doesn't currently award preference points to developers who commit to entering into an agreement with labor organizations. On November 13, 2012, the Port Commission adopted Resolution 3668, requiring tenants to ensure nondiscrimination against any persons on grounds of age, race, color, ethnicity, gender, etc., and compelling tenants to apply equal opportunity principles in employment and subcontracting. The Port does not currently have a Commission resolution adopting goals for Port tenants to employ minority or disadvantaged persons. The Real Estate division is seeking policy guidance on this issue, including whether the status quo is sufficient and, if not, whether there are persons or groups underrepresented in our tenants' construction projectstoward whom the Port should be directing new policy, such as women, minorities, small businesses, or the disabled. The Real Estate division currently has several pending deals that it would like to resolve to enable property to be put onto the market while conditions are favorable and would encourage expeditious development of a policy on this issue. Outreach has been conducted with several outside agencies, including the City of Seattle, King County, the Seattle Housing Authority, Sound Transit, and the Ports of Tacoma, Oakland, and Long Beach. None of these agencies have policies explicitly addressing their tenants' contracting policies. The Port currently has a policy for when project labor agreements (PLAs) are applied, but the policy does not extend to tenants' projects, and the Port does not have a policy or practice requiring bidders on its tenants' projects to recognize unions as collective bargaining representatives for workers on tenant-owned projects. This is similar to the approach of most agencies surveyed. Like PLAs, community workforce agreements (CWAs) are pre-bid contracts between local governments and unions that impose certain terms and conditions that contractors and their subcontractors must assent to as a condition of contract award. CWAs also typically contain hiring preferences aimed at incentivizing or requiring hiring of a certain percentage of workers from economically distressed zip codes. Both the City of Seattle and the Seattle Housing Authority use CWAs in their projects. The Real Estate division's proposed policy statement would ensure fair opportunity for all qualified contractors to win bids for construction work on real estate development projects to be built by Port tenants. The proposed policy would be implemented by the creation of a contractor roster, used by staff to annually apprise the contracting community of upcoming opportunities, and to maintain a list of contractors interested in upcoming projects. Minutes of October 14, 2014, Regular Meeting proposed for approval on April 28, 2015 PORT COMMISSION REGULAR MEETING MINUTES Page 12 of 13 TUESDAY, OCTOBER 14, 2014 The list of contractors would then be provided to proposed tenants prior to their execution of any long-term lease for real estate development work. The policy would be referenced in any competitive procurements performed by the Real Estate division, but would not be part of the selection criteria for a developer. If there has been no competitive procurement of the proposed transaction, mention of this policy would be included in any preliminary letter of intent, but not as a condition of the deal. The roster would be valuable as a transparency tool by informing the contracting community of upcoming opportunities, especially if it was electronically intersected with the state's, the city's, and the county's existing rosters to facilitate ease of use. In response to Commissioner Creighton, it was reported that no airport-specific agencies besides the Port of Oakland were surveyed for the purposes of this presentation. In response to Commission inquiry, it was reported that the Seattle Housing Authority, having mixed funding from local and federal sources, is currently setting its aspirational goals in accordance with provisions of the state's I-200. In response to Commissioner Gregoire, Mr. Griffin stated there is currently no specific data to demonstrate whether the status quo is sufficient or not with regard to tenant-contracted work, due to the difficulty of obtaining such data from private tenants. Some research has been performed by the Office of Social Responsibility, and some information may be gleaned based on data from direct Real Estate projects. Commissioner Bowman commented on the importance that policy on this issue take a longer-term, holistic approach, taking into account the Port's economic development goals for all opportunities throughout Port operations, and any policy's impact on the local community and job creation. The Port's strategic objectives as an economic development agency should be connected to the Port's community objectives as a local government agency. It was noted that tenants' provision of information about provision of contrating opportunities for the disadvantaged as a condition of doing business. The roster represents a good first effort, but balance must be maintained between providing equal contracting opportunities and performing projects efficiently. Approaches for balancing the need for agency oversight on contracting labor issues with the relative demand for the property. Aw arding points to bidders interested in accomplishing Port social responsibility goals was suggested. It was also noted that CWAs might be a better tool for accomplishing the Port's goals than PLAs. The importance of alignment between the Port's economic development objectives and community service objectives was stressed. 8. NEW BUSINESS 8a. Disease Prevention Protocols at Seattle-Tacoma International Airport. Chief Krause reported on disease prevention protocols at Seattle-Tacoma International Airport, in light of recent Ebola virus outbreak in the U.S. He noted that various agencies met September 23 Minutes of October 14, 2014, Regular Meeting proposed for approval on April 28, 2015 PORT COMMISSION REGULAR MEETING MINUTES Page 13 of 13 TUESDAY, OCTOBER 14, 2014 to discuss quarantine control plans and interagency cooperation. These plans are consistent with other efforts to control infectious disease. Airport firefighters are vigilant for signs of infectious disease and aware of health risks associated with various countries of origin. They are in communication with the Centers for Disease Control and Customs and Border Protection as circumstances warrant. Procedures have been defined and implemented with regard to best protective practices and other measures. All quarantine, control, and mitigation actions will be based on fact rather than hype or rumor. Chief Krause pointed out that there is little cause for concern at present. The Airport has no direct flights from the most Ebola-affected countries in West Africa, and there are no cases of Ebola reported in the Puget Sound Region. 10. ADJOURNMENT There being no further business, the regular meeting was adjourned at 3:30 p.m. Bill Bryant Assistant Secretary Minutes approved: April 28, 2015. Minutes of October 14, 2014, Regular Meeting proposed for approval on April 28, 2015
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