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

APPROVED MINUTES
COMMISSION SPECIAL MEETING JULY 28, 2015
The Port of Seattle Commission met in a special meeting Tuesday, July 28, 2015, at Port of Seattle
Headquarters, Commission Chambers, 2711 Alaskan Way, Seattle, Washington. Commissioners
Albro, Bowman, Bryant, Creighton, and Gregoire were present.

1.       CALL TO ORDER
The meeting was called to order at 11:59 a.m. by Commission Co-President Stephanie Bowman.

2.       EXECUTIVE SESSION pursuant to RCW 42.30.110
The public meeting was immediately recessed to an executive session estimated to last 60 minutes to
discuss matters relating to litigation, legal risk, and sale or lease of real estate. Following the executive
session, which lasted approximately 50 minutes, the public meeting reconvened at 1:08 p.m.

PLEDGE OF ALLEGIANCE

A recording of this part of the meeting has been made available online.

As noted on the agenda, the Commission advanced to consideration of 
5.       PUBLIC TESTIMONY
Public comment was received from the following individual(s):
Mark Hennon, Seattle resident, who commented on the environmental impact of air traffic
and the proposed new International Arrivals Facility.
Norman Sigler, Seattle resident, who commented on Commission oversight of division
heads, environmental issues, the tax levy, and the Seaport Alliance.
Goodspaceguy, King County resident, who commented on the tax levy and the minimum
wage.

A recording of this part of the meeting has been made available online.

Following public testimony, the Commission returned to consideration of 
3.       SPECIAL ORDERS OF BUSINESS
3a. July 28, 2015, CEO Report.

Chief Executive Officer Ted Fick reported on a Port bond issuance of more than $582 million for
Airport capital projects not including the International Arrivals Facility, but covering projects such as


Digital recordings of the meeting proceedings and meeting materials are available online  www.portseattle.org.
PORT COMMISSION MEETING MINUTES                                                            Page 2 of 5
TUESDAY, JULY 28, 2015

North Satellite renovations and rebuilding of the Center Runway. The savings on debt service from
re-issuance of some of these bonds amounted to about $42 million. Debt service and cost per
enplanement will be reduced as a result in 2015 and 2016. He noted increases to net operating
income and Port advocacy for the state's legislative transportation package.

A recording of this part of the meeting has been made available online.

3b. Forum on Seatle-Tacoma International Airport's International Arrivals Facility (IAF):
Financing, Planning, and Technology.

Presentation document(s) included presentation slides.

Commission Chief of Staff Mike Merritt opened the hearing and made introductory remarks.

Discussion One: Airport Finance Overview
Participant(s): Borgan Anderson, Director, Aviation Finance and Budget; Jim Burchette, Vice
President, AvAirPros; and Warren Adams, Managing Partner, WJ Advisors.

The third-party review of the Airport's IAF financing planning process was discussed. A goal of the
review was to determine how other airports fund their IAFs. The criteria for establishing baseline
comparisons were described, and the Federal Aviation Administration's (FAA) regulatory role in
use of passenger facility charges (PFCs) was explained. When they were created in 1990, PFCs
were structured with a measure of local control over their applied uses.

Of the 11 airports compared, all use PFCs to fund recent international facilities and there is no
apparent correlation of the percentage of international passengers and PFC allocation. The
percentage of PFC funding proposed at Sea-Tac is within the middle of the range compared to
other airports.

In response to questions raised on July 14, 2015, it was reported that airports with use and lease
agreements similar to Seattle-Tacoma International Airport include the Denver International,
George Bush Intercontinental, and Los Angeles International Airports. None of these agreements
include capital approval provisions. They have no process similar to Seattle's majority-in-interest
ballot. It is difficult to determine whether reduction of airline service has resulted from cost-per-
enplanement increases, due to the complex nature of airlines' decision-making processes for
deploying service and the unavailability of specific data. International facilities are separate cost
centers at Denver, George Bush, and Los Angeles International.

A recording of this part of the meeting has been made available online.

Discussion Two: IAF Planning History
Participant(s): Elizabeth Leavitt, Director, Aviation Planning and Environmental Services; and Ross
Payton, Principal, architectural firm Corgan.

Examples of concepts proposed to improve international facilities and ease Airport congestion,
including the favored options from a 2009 study, were discussed. The merits of different
configurations, deployment of technology, passenger pre-clearance, and rescheduling peak
arrivals (slotting) were noted. The factors influencing the current proposal of a landside facility with


Minutes of July 28, 2015, proposed for approval on September 22, 2015.
PORT COMMISSION MEETING MINUTES                                                      Page 3 of 5
TUESDAY, JULY 28, 2015

a connector bridge to the South Satellite were reviewed. Customs and Border Protection
requirements that are factored into IAF planning were presented.

A recording of this part of the meeting has been made available online.

Discussion Three: Independent Architectural Review
Participant(s): Andy Bell, Airport Market Sector Lead, Kimley-Horn; Kiran Merchant, CEO, DY
Consultants; and Mike Ducette, Deputy Executive Director, Los Angeles World Airports.

The results of independent review of the current IAF design were presented. The design process
was found to be holistic and demand-driven, with thoroughly examined alternatives. Reviewers
commented on innovative ideas discovered during the design process. They noted that the due
diligence exercised exceeds industry norms and remarked favorably on stakeholder engagement.
Potential design weaknesses, such as possible passenger choke-points, were noted and inclusion
of accommodations for permanent busing operations was recommended. Also recommended was
permanent relocation of the Ground Transportation lot beneath the A Concourse. The Commission
was cautioned about ancillary capacity issues, such as utility capacity and adequate vertical
conveyance capacity. Reviewers endorsed use of the progressive design-build project delivery
method. The use of connection times as a key metric was commended. It was noted that
technology can ease capacity issues, but is not an alternative to expansion and redevelopment of
international facilities.

It was acknowledged that many of the recommendations of the peer review seem to suggest that
the project cost might increase, rather than decrease overall costs. It was also acknowledged that
the business interests of airlines may differ from the long-term interests of airports.

A recording of this part of the meeting has been made available online.

Discussion Four: Design-Build Contractor and Validation Process
Participant(s): David Brush, IAF Program Leader, and Lou Palandrani, Senior Vice President, Clark
Construction.

It was reported that the design-build contract for the IAF was executed July 20, 2015. A 120-day
design-build validation phase is underway and should conclude before December. Concepts and
decisions introduced as a result of the Commission's 90-day IAF program comment period will be
addressed during validation. A refined IAF concept and target budget and schedule will be
produced. Authorization of design will follow validation.

A recording of this part of the meeting has been made available online.

Discussion Five: Customs and Border Protection; Technology at Federal Inspection Service
Facilities
Participant(s): David Brush, IAF Program Leader; Dan Tanciar, Director, Travel and Tourism
Initiatives, Customs and Border Protection Office of Field Operations; and Mark Wilkerson,
Customs and Border Protection Seattle Area Port Director.




Minutes of July 28, 2015, proposed for approval on September 22, 2015.
PORT COMMISSION MEETING MINUTES                                                        Page 4 of 5
TUESDAY, JULY 28, 2015

The Airport's strong working relationship with Customs and Border Protection (CBP) was
discussed. CBP is enthusiastic about the use of technology and new processes to streamline
processing of international passengers. Pre-clearance screening of passengers on foreign soil was
discussed. The security requirements for pre-clearance were summarized, and it was noted that
budget or security events in either the partner country or the U.S. have the potential to alter pre-
clearance agreements. It is possible other countries could perform pre-clearance for U.S.
passengers, but not necessarily for passengers bound for Seattle-Tacoma International Airport.
Passenger volumes and the increasing shortage of wide-body gates during peak arrival times was
discussed.

A recording of this part of the meeting has been made available online.

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.]

The minutes of the special afternoon meeting of January 13, 2015, were removed from
consideration of agenda item 4a without objection. Item 4a was considered as including only the
minutes of January 6, 2015, and July 14, 2015.

4a. Approval of the minutes of the regular meeting of January 6, 2015, and the regular
meeting of July 14, 2015. [January 13, 2015, removed]

4b. Motion to appoint Mike Merritt to serve as Port of Seattle Commission Chief of Staff.

Request document(s) included the text of the motion.

The motion for approval of consent items 4a and 4b carried by the following vote:
In favor: Albro, Bowman, Bryant, Creighton, Gregoire (5)

A recording of this part of the meeting has been made available online.

The Commission received Public Testimony previously, and no further public testimony was
offered at this time.

6.    DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS  None.

7.    STAFF BRIEFINGS  None.

8.    ADDITIONAL NEW BUSINESS  None.




Minutes of July 28, 2015, proposed for approval on September 22, 2015.
PORT COMMISSION MEETING MINUTES                                          Page 5 of 5
TUESDAY, JULY 28, 2015

9.    ADJOURNMENT
There was no further business, and the meeting adjourned at 4:25 p.m.

Tom Albro
Secretary

Minutes approved: September 22, 2015.




Minutes of July 28, 2015, proposed for approval on September 22, 2015.