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

APPROVED MINUTES
COMMISSION REGULAR MEETING NOVEMBER 24, 2015
The Port of Seattle Commission met in a regular meeting Tuesday, November 24, 2015, in the
International Auditorium at Seattle-Tacoma International Airport, Seattle, Washington.
Commissioners Albro, Bowman, Creighton, and Gregoire were present. Commissioner Bryant
participated by telephone until 2:21 p.m.

1.   CALL TO ORDER
The meeting was called to order at 12:04 p.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 three matters relating to litigation and legal risk and one matter relating to litigation, legal
risk, and performance of a publicly bid contract. At 1:02 p.m., the Commission Clerk announced on
behalf of the presiding officer that the executive session would be extended until 1:17 p.m. to finish
consideration of the matters previously announced. Following the executive session, which lasted
approximately 75 minutes, the public meeting reconvened at 1:33 p.m. chaired by Commission Co-
President Courtney Gregoire, who led the flag salute.

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

3.   SPECIAL ORDERS OF BUSINESS
3a. November 24, 2015, CEO Report.

Ted Fick, Chief Executive Officer, reported on Airport security readiness in the wake of terrorist
attacks in Paris, France, recognition of the Airport's pre-conditioned air project, and small and
disadvantaged business development opportunities, including the launch of a new small business
accelerator program.

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.]




Digital recordings of the meeting proceedings and meeting materials are available online ??" www.portseattle.org.
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TUESDAY, NOVEMBER 24, 2015

4a. Approval of the minutes of the regular meeting of May 12 and the special meeting of
November 10, 2015.

4b. Approval of Claims and Obligations for the period October 1-October 31, 2015, in the
amount of $51,567,011.63 including accounts payable check nos. 907017-907632 in the
amount of $6,611,627.06, payroll check nos. P-180750-180954 in the amount of
$8,152,806.94, wire transfer nos. 013725-013780 in the amount of $10,486,859.11, and
EFTs nos. 037841-038365 in the amount of $26,315,718.52 for a fund total of
$51,567,011.63.

4c. Authorization for the Chief Executive Officer to execute a new collective bargaining
agreement between the Port of Seattle and the International Brotherhood of
Teamsters, Local 117, covering the period from January 1, 2015, through December 31,
2017, and affecting 15 Police and Fire Communication Specialist position.

Request document(s) included a Commission agenda memorandum and collective bargaining
agreement.

4d. Revision of the December 9, 2014, authorization for the Chief Executive Officer to
execute a lease and concession agreement with HMS Host to remove one food service
location from their lease and reduce their Minimum Annual Guarantee by $77,000.

Request document(s) included a Commission agenda memorandum.

The motion for approval of consent items 4a, 4b, 4c, and 4d 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.

5.    PUBLIC TESTIMONY
Public comment was received from the following individual(s):
Roxan Seibel, United Food and Commercial Workers (UFCW) and Hudson, regarding
leave policies and wages for Airport Dining and Retail employees.
Amran Ibrahim, UFCW and Hudson, regarding wages for Airport Dining and Retail
employees.
Stefan Moritz, Unite Here, regarding the Airport Dining and Retail street pricing policy.
Joe Mizrahi, UFCW Local 21, regarding the Airport Dining and Retail street pricing policy.
In lieu of verbal testimony, Steven Sterne, General Manager, Keeney's Office Supply,
submitted a letter regarding the proposed office supply procurement in agenda item 6f,
which is attached as minutes Exhibit A and is available for public review.
In lieu of verbal testimony, Elaine Holmes, Port of Seattle Construction Labor Group,
submitted written comments regarding Port salaries and benefits, agenda item 6c. A
copy is attached as minutes Exhibit B and is available for public review.

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




Minutes of November 24, 2015, proposed for approval on December 8, 2015.
PORT COMMISSION MEETING MINUTES                                                          Page 3 of 8
TUESDAY, NOVEMBER 24, 2015

6.    DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS
6a. Authorization for the Chief Executive Officer to execute a contract to construct Phase
Two of the South Satellite Interior Renovations project at Seattle-Tacoma International
Airport. This request is for $2,435,000 of a total estimated project cost of $4,356,000.
(CIP #C800549).

Request document(s) included a revised Commission agenda memorandum and presentation slides.

Presenter(s): Wayne Grotheer, Director, Aviation Project Management, and Daniel Zenk, Senior
Manager Airport Operations.

There was a presentation on the requested action, including the history of phasing of South
Satellite improvements and the scope of the improvements currently proposed. A typographical
error on page 3 of the memo was corrected to indicate proposed authorization in the fourth, rather
than the third, quarter of 2015.

The motion for approval of agenda item 6a 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.

6b. Second Reading and Final Passage of Resolution No. 3713, as amended: A resolution
of the Port Commission of the Port of Seattle adopting the final budget of the Port of
Seattle for the year 2016; making, determining, and deciding the amount of taxes to be
levied upon the current assessment roll; providing payment of bond redemptions and
interest, cost of future capital improvements and acquisitions, and for such general
purposes allowed by law which the Port deems necessary; and directing the King
County Council as to the specific sums to be levied on all of the assessed property of
the Port of Seattle District in the Year 2016.

Request document(s) included a Commission agenda memorandum, draft resolution, and
presentation slides.

Presenter(s): Dan Thomas, Chief Financial Officer, and Dave McFadden, Managing Director,
Economic Development.

Previously, First Reading of Resolution No. 3713 was approved on November 10, 2015.

The proposed 2016 budget was summarized. Operating revenue is forecast at $584.6 million;
operating expenses are budgeted at $336.0 million; net operating income is forecast at $248.6
million; the capital budget for 2016 is $408.4 million; and the tax levy is proposed at $72 million, a
$1 million reduction from 2015. Key budget drivers were described. Workforce development and
career pathway programs included in the Economic Development budget were noted.
Commissioners commented favorably on increased attention in the budget for workforce
development and provided direction on the need for strategic workforce development efforts. There
was discussion on the merit of reducing the tax levy to $72 million. The Port's uses of tax levy
funding were summarized. Clarification of budget increases in the recently reorganized Maritime
Division was requested.


Minutes of November 24, 2015, proposed for approval on December 8, 2015.
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TUESDAY, NOVEMBER 24, 2015


The motion for Second Reading and Final Passage of Resolution No. 3713, as amended
(agenda item 6b) 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.

Commissioner Bryant was absent after 2:21 p.m.

6c. Second Reading and Final Passage of Resolution No. 3712: A resolution of the Port
Commission of the Port of Seattle establishing jobs, pay grades, pay ranges, and pay
practices for Port employees not represented by a labor union; authorizing legally
required benefits, other benefits for Port employees not represented by a labor union
including retirement, paid leave, healthcare, life insurance and disability benefits,
benefits for Port of Seattle retirees, and benefits for Port of Seattle Commissioners;
and authorizing this resolution to be effective on January 1, 2016, and repealing all
prior resolutions dealing with the same subject, including Resolution No. 3699. [as
introduced without the proposed performance pay section III and subsequently laid on
the table]

Request document(s) included a Commission agenda memorandum, draft resolution, comparison
document, and salary range document.

Presenter(s): Tammy Woodard, Assistant Human Resources Director ??" Total Rewards.

Previously, First Reading of Resolution No. 3712 was approved on November 10, 2015.

Commissioners received a presentation that included answers to several clarifications sought
during the resolution's presentation on November 10. There was discussion of employee
responses to proposed salary and benefits changes for 2016, particularly implementation of a 40-
hour work week and provision of a parental leave benefit. Commissioners provided direction
regarding responding to employee questions and comments regarding new provisions. In response
to Commissioner inquiry, Dan Thomas, Chief Financial Officer, reported that temporary
postponement of the salary and benefits resolution would not interfere with the timely filing of the
Port's 2016 budget with King County, as required by statute.

Without objection, agenda item 6c was laid on the table and Resolution No. 3712 did not obtain
Second Reading.

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

6d. Authorization for the Chief Executive Officer to provide short-term Airport concessions
pricing flexibility in order to accommodate City of SeaTac Ordinance 13-1020
(commonly referred to as Proposition One) that increases employee minimum wages to
$15.24. The Chief Executive Officer would be authorized to implement pricing flexibility
by revising the Port's policy regarding street pricing in order to allow tenants in the
Airport Dining and Retail Program to set prices at not more than 10% above "street"
prices for all products and services sold from December 1, 2015, through December 31,


Minutes of November 24, 2015, proposed for approval on December 8, 2015.
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TUESDAY, NOVEMBER 24, 2015

2019. As of January 1, 2020, the policy shall revert to its current state. Consistent with
this change, staff also requests the Commission to authorize the Chief Executive
Officer to amend all existing leases in the Airport Dining and Retail Program to reflect
this change. [subsequently amended by substitution]

Request document(s) included a Commission agenda memorandum, a memorandum to the
Commission from CEO Ted Fick, and presentation slides. An alternative action request was
provided on the day of the meeting, but was not introduced for adoption.

Presenter(s): Jim Schone, Director, Aviation Business Development.

In opening remarks on agenda items 6d and 6e, CEO Ted Fick proposed a substitute action
request for agenda item 6d, which is provided below.

Commissioners provided direction on providing flexibility to businesses in order to facilitate
implementation of provisions of Ordinance 13-1020 in the Airport Dining and Retail program and on
appropriate conditions for allowing higher pricing of goods and services relative to street pricing.
Commissioners discussed a phased approach to returning to street pricing at the Airport and the
need to balance the needs of businesses, employees, and the traveling public.

The substitute action request reads as follows:
Authorization for the Chief Executive Officer to provide short-term Airport concessions
pricing flexibility in order to accommodate City of SeaTac Ordinance 13-1020
(commonly referred to as Proposition One) that increases employee minimum wages to
$15.24.
The CEO is authorized to implement pricing flexibility by revising the Port's policy
regarding street pricing to allow tenants in the Airport Dining and Retail program to set
prices at not more than 10 percent above "street'' prices for all products and services
sold from Dec. 1, 2015, through Dec. 21, 2019; provided that, said increase will only be
extended to current employers if they offer:
a.     The minimum wage standards set forth in the City of SeaTac minimum wage
ordinance;
b.     Payment of sick and safe time, which shall be accrued at the rate of one hour
for every 40 hours worked;
c.     Health insurance to full-time employees, consistent with the Affordable Care
Act; and
d.     Comply with any reasonable request from Port staff for verification of actual
wages paid to the tenant's employees.
These requirements may be waived for employers with a bona fide collective
bargaining agreement.
Further, the increase over street pricing will be phased out by January 1, 2020,
according to the following schedule:
a.     Pricing for all products and services would be set at no more than 10 percent
above street pricing from December 1, 2015, through December 31, 2016;


Minutes of November 24, 2015, proposed for approval on December 8, 2015.
PORT COMMISSION MEETING MINUTES                                                                   Page 6 of 8
TUESDAY, NOVEMBER 24, 2015

b.     Pricing for all products and services would be set at no more than 7.5 percent
above street pricing for calendar year 2017;
c.     Pricing for all products and services would be set at no more than 5.0 percent
above street pricing for calendar year 2018;
d.     Pricing for all products and services would be set at no more than 2.5 percent
above street pricing for calendar year 2019; and
e.     As of January 1, 2020, the street pricing policy shall revert to its current state.

The motion for approval of the substitute action request for agenda item 6d, as described
above, carried by the following vote:
In favor: Albro, Bowman, Creighton, Gregoire (4)
Absent for the vote: Bryant

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

6e. Authorization for the Chief Executive Officer to conduct competitive solicitations and
execute lease and concession agreements with selected proposers for ten new small
business-oriented opportunities: (1) Single Unit #2 ??" Food Service/Fast Casual; (2)
Single Unit #6 ??" Food Service/Casual Dining; (3) Single Unit #8 - Food Service/Gourmet
Coffee; (4) Small Unit #16 ??" Personal Services/Manicure (1 unit); (5) Small Package #6 ??"
Personal Services/Massage (2 units); (6) Single Unit #12 - Small Specialty Retail; (7)
Small Package #2 ??" Specialty Retail (2 units); (8) Small Package #3 ??" Specialty
Retail/Tech Products (2 units); (9) Single Unit #15 ??" Specialty Retail; (10) Single Unit
#14 ??" Passenger Services - Baggage/Luggage Storage and Delivery. Unit and package
numbers reflect how each is denoted in the ADR master plan. [as revised]

Request document(s) included a revised Commission agenda memorandum, memorandum to the
Commission from CEO Ted Fick, revised presentation slides, and the following lease descriptions:
Food Service Single Unit No. 2                             Specialty Retail Single Unit No. 12
Food Service Single Unit No. 6                             Specialty Retail Small Package No. 2
Food Service Single Unit No. 8                             Specialty Retail Small Package No. 3
Personal Services Single Unit No. 16                       Specialty Retail Single Unit No. 15
Personal Services Small Package No. 6                      Passenger Service Single Unit No. 13

Presenter(s): Jim Schone, Director, Aviation Business Development.

[Clerk's Note: A similar lease package proposal was considered by the Commission on August 4,
2015, and was laid on the table at that time.]

The Commission received a presentation that described the changes to the lease package since
August 4 and the outreach activities conducted since then, including sessions for architecture,
engineering, and consulting businesses (AECs). It was noted that Personal Services Single Unit
No. 16 had been revised to remove a unit due to considerations of current litigation. A competitive
evaluation process is proposed. This selection method was contrasted with the more complicated
request for proposals process.



Minutes of November 24, 2015, proposed for approval on December 8, 2015.
PORT COMMISSION MEETING MINUTES                                                         Page 7 of 8
TUESDAY, NOVEMBER 24, 2015

Commissioners requested clarification regarding staggered lease lengths and offered direction
regarding not providing lease extensions in the future program. Commissioners also provided
direction on the appropriate use of consultant services for the Airport Dining and Retail program
with respect to the competitive evaluation process and the need for broad community involvement
in the evaluation process.

Commissioners requested additional clarification regarding the definition of small business vis--vis
locally owned franchises. There was a robust discussion of the appropriate distribution of points in
the evaluation process. Direction was provided on providing scoring weight to environmental
stewardship and provision of a Northwest Sense of Place.

Commissioners expressed a desire for revision of evaluation criteria based on Commission
direction with the intention of reviewing the request again on December 8.

Without objection, agenda item 6e was laid on the table.

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

6f. Authorization for the Chief Executive Officer to execute contract(s) for up to five years
(1 year initial term with four one-year options) for office supplies. The estimated value
is $1,300,000 for five years.

Request document(s) included a Commission agenda memorandum.

Presenter(s): Dave Caplan, Senior Director, Strategic Initiatives, and Tim Jayne, Senior Manager,
Purchasing.

[Clerk's Note: A similar authorization request was considered by the Commission on October 27,
2015, and was laid on the table at that time.]

Mr. Caplan described the actions taken in response to Commission direction of October 27.
Commissioners requested clarification of the overall strategy associated with the proposed
procurement and its relationship to current contracts for office supplies.

Without objection, agenda item 6f was laid on the table.

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

RECESSED AND RECONVENED
The meeting was recessed at 3:51 p.m. and reconvened at 4:04 p.m., chaired by Commissioner
Bowman.

7.    STAFF BRIEFINGS
7a. Flight Corridor Safety Obstruction Management Briefing.




Minutes of November 24, 2015, proposed for approval on December 8, 2015.
PORT COMMISSION MEETING MINUTES                                                        Page 8 of 8
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Presentation document(s) included a Commission agenda memorandum and presentation slides.

Presenter(s): Mark Coates, Senior Manager Airport Operations, Airfield Operations.

There was a presentation on the airfield safety requirements to remove obstructions within a
certain air space above properties near the Airport. In this context, obstructions generally means
trees that have grown to a height that requires their removal. The phased approach and community
outreach planned were summarized. Ongoing requirements for obstruction evaluation and removal
by the Federal Aviation Administration were noted. Commissioners requested that the authorization
request be accompanied by a replanting proposal such that there would be no net loss of trees as
a result of obstruction removal.

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

7b. 2015 Quarter 3 NorthSTAR Program and North Satellite Project Briefing.

Presentation document(s) included a Commission agenda memorandum and presentation slides.

Presenter(s): Mark Reis, Managing Director, Aviation, and George England, Capital Program
Leader, Aviation Project Management.

The Commission received a presentation that included a brief overview of the history of the
NorthSTAR program and the Port's relationship with the project proponent Alaska Airlines. The
current status of the projects comprising the overall program was summarized, including schedule
and budget variances and attainment of measurable outcomes. Commissioners commented on
value engineering efforts being balanced by the need for an inviting facility and on the dynamism of
the project and attainment of apprenticeship goals.

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

8.    ADDITIONAL NEW BUSINESS ??" None.

RECESSED AND RECONVENED
The meeting was recessed at 4:35 p.m. to an executive session estimated to last 15 minutes to
discuss one matter relating to qualifications for public employment. Following the executive
session, which lasted approximately 40 minutes, the public meeting reconvened at 5:15 p.m.

9.    ADJOURNMENT
There was no further business, and the meeting adjourned at 5:15 p.m.

Tom Albro
Secretary

Minutes approved: December 8, 2015.




Minutes of November 24, 2015, proposed for approval on December 8, 2015.