P.O. Box 1209
Seattle, Washington 98111
www.portseattle.org
206.787.3000

APPROVED MINUTES
COMMISSION SPECIAL TOWN HALL MEETING MAY 21, 2015
The Port of Seattle Commission held a special town-hall meeting Thursday, May 21, 2015, at the
Rotunda at Clover Park Technical College, 4500 Steilacoom Boulevard Southwest, Lakewood,
Washington. Port of Seattle Commissioner Gregoire participated by telephone, and Port of Tacoma
Commissioners Bacon, Johnson, Meyer, and Petrich were present. Port of Tacoma CEO John
Wolfe was also present.

The meeting was called to order at approximately 7:00 p.m. by Port of Tacoma Commission
President Don Johnson, who welcomed guests and summarized the industry changes driving
formation of an alliance between the ports of Tacoma and Seattle. He commented on the history of
competition between the two ports and the prospect for both ports together to compete instead with
other cargo gateways in North America. He also noted the effort to achieve parity within the
alliance between the two ports in fairness to the constituencies of King and Pierce Counties.

Mr. Wolfe described Washington state's dependency on trade and its loss of market share in the
shipping industry. He noted the impact to jobs of dropping market share and the fierce quality of
competition in the industry, including significant investment by competing gateways. Mr. Wolfe
explained the goal in the Puget Sound Gateway to double container volume and the alliance's role
in achieving that goal through coordinated infrastructure investment, concentration on meeting
customer needs, and collaboration with all supply-chain stakeholders to increase efficiency and
reliability for customers. He commented on the proposed governance structure of the alliance and
the management team's relationship to the ports, which will continue to own their own
infrastructure assets. He summarized the assets of each port to be included in the management
structure of the alliance.

Public comment was received from the following individuals:
Ralph Ibarra
Robert Ross
Eric Holdeman
Eric Merked
Joe Zewicky
Bill Evans
Jack Woods

Comment and discussion included topics relating to inclusiveness in the alliance's management of
port assets, alliance strategic planning efforts given the increase in cargo volume and the needed
surge capacity associated with it. Also discussed were strategic alignment in the rest of the supply


Digital recordings of the meeting proceedings and meeting materials are available online  www.portseattle.org.
PORT COMMISSION MEETING MINUTES                                                          Page 2 of 2
WEDNESDAY, MAY 21, 2015

chain, including transportation infrastructure funding at federal, state, and local levels. The
importance of trust between the two Commissions and among individual Commissioners in order to
make the alliance successful was addressed, as was the need to advocate generally for maritime
business interests in the state. Questions were asked about the phasing of infrastructure
improvements between the two ports and potential changes to the Port of Tacoma's business
model. Commissioners were asked about options for dissolution of the alliance prior to the 20-year
term described in the interlocal agreement. The mediation processes provided for were described
and it was noted that the two Commissions could effectively end the alliance earlier if they decided
to do so. Past collaboration successes between the two ports were noted. There were comments
related to the jointly managed assets not including the Port of Seattle's Aviation or Cruise line of
business, the inclusion of which, it was suggested, could help the Port of Tacoma grow in new
areas. A request was made to make the alliance documentation more easily accessible to the
public online. The level of commitment of the Port of Seattle and the Seattle community to maritime
interests was a topic of discussion. There was inquiry about the effects of the alliance on the ports'
bond ratings. The contrast to achieving operational savings while expanding infrastructure was
discussed. The role of each port's local labor unions was a topic of conversation.

Commissioner Meyer commented on his interest in balancing investment risk and market
uncertainty and in using returns to re-invest to remain competitive.

Commissioner Bacon pointed out that regardless of which port goes first in infrastructure
development for big ships or otherwise, the Gateway as a whole will benefit regardless. With
regard to business models for terminal operation, she indicated that those determinations would
depend on customer needs going forward. Mr. Wolfe added that the best solution for terminal
operation is still under consideration.

Commissioner Johnson summarized upcoming meetings and next steps in formation of the Alliance.

There was no further business, and the meeting adjourned at approximately 7:21 p.m.

Stephanie Bowman
Secretary

Minutes approved: February 9, 2016.




Minutes of May 21, 2015, town hall proposed for approval on February 9, 2016.