June 23 RM Min

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

(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 JUNE 23, 2009

The Port of Seattle Commission met in a special meeting at 12:00 p.m., Tuesday, June

23, 2009 in the International Conference Center, Airport Office Building, Seattle-Tacoma

International Airport, Seattle, WA. Commissioners Bryant, Creighton, Hara and Tarleton

were present. Commissioner Davis was absent.

1. CALL TO ORDER

The special meeting was called to order at 12:35 p.m. by Bill Bryant, Chair and

President.

2. EXECUTIVE SESSION pursuant to RCW 42.30.110

The regular meeting was immediately recessed to an executive session to discuss Legal

Risk issues for approximately thirty minutes and reconvened to public session.

PLEDGE OF ALLEGIANCE

3. APPROVAL OF MINUTES

(00:01:01) Motion for approval of the minutes of the May 12 regular meeting and

the May 19 special meeting – Hara

Second – Tarleton

Motion carried by the following vote:

Commissioners

Bill Bryant

Chair and President

John Creighton

Patricia Davis

Lloyd Hara

Gael Tarleton

P.O. Box 1209

Seattle, Washington 98111

www. portseattle.org

206.728.3000

Tay Yoshitani

Chief Executive Officer

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In Favor: Bryant, Creighton, Hara, Tarleton (4)

Commissioner Davis was absent for the vote.

4. SPECIAL ORDER OF BUSINESS

None.

5. UNANIMOUS CONSENT CALENDAR

a. (00:01:49) Authorization for the Chief Executive Officer to authorize all work,

execute Category III procurement process for IDIG (Indefinite Delivery,

Indefinite Quantity) contract and execute all contracts, service directives, and

amendments for professional services to support the concession tenant-funded

joint concession marketing program. Procurement estimated at $250,000

annually for a period of up to three years ($750,000 total).

Request document: Commission agenda memorandum dated May 29, 2009 and

computer slide presentation from James R. Schone, Director, Aviation Business

Development and Deanna Zachrisson, Manager, Aviation Concessions Business

Motion for approval of Item 5a – Creighton

Second – Hara

Motion carried by the following vote:

In Favor: Bryant, Creighton, Hara, Tarleton (4)

Commissioner Davis was absent for the vote.

6. DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS

a. (00:02:35) Authorization for the Chief Executive Officer to procure and execute

a contract for consultant services to implement an update to Sea-Tac Airport’s

Part 150 Noise Compatibility Plan.

Request document: Commission agenda memorandum dated June 5, 2009 from Stan

Shepherd, Manager, Airport Noise Programs.

Presenter: Mr. Shepherd

Staff commented on the schedule for the upcoming study, noting their commitment to

expediting the process. It was also noted that the Part 150 studies are typically eligible

for grant funding. It was stated that staff will work with the FAA, the consultant, and

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surrounding communities in order to establish a public process prior to the Part 150

study.

Commissioner Creighton reiterated that there needs to be a full and inclusive public

process, staff replied that Commissioners will also have an opportunity to weigh in before

the process begins.

Commissioner Hara requested that during the study, staff return to brief the Commission

on the status of the plan.

Motion for approval of Item 6a – Tarleton

Second – Hara

Motion carried by the following vote:

In Favor: Bryant, Creighton, Hara, Tarleton (4)

Commissioner Davis was absent for the vote

Item 7a was advanced on the agenda as follows:

7. STAFF BRIEFINGS

a. (00:10:43) Briefing on Rental Car Facility (RCF) Program Status

Presentation documents: Commission agenda memorandum dated June 15, 2009 and

computer slide presentation from George England, Program Leader, Aviation Capital

Improvement Program and Janice Zahn, Assistant Director, Engineering, Construction

Services; and draft Commission agenda memorandum dated June 18, 2009 from Michael

Ehl, Director, Airport Operations and George England, Program Leader, Aviation Capital

Improvement Program. Also included was a draft memorandum which staff planned to

present to the Commission at the June 30 Commission meeting.

Presenters: Mr. England, Ms. Zahn, and Ralph Graves, Managing Director, Capital

Development Division

Mr. Graves provided information on the status of the Rental Car Facility Program, and

details of the upcoming action item to lift the suspension and proceed with the restart and

completion of the RCF Program. Mr. Graves stated that staff intended to return with that

request at the next Commission meeting, June 30.

Also provided was the background on the suspension of the project in December, 2008,

due to weakened financial markets. Comments were made regarding the significance of

the impacts when a project of this magnitude is delayed.

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Specific areas addressed included:

 Overview

 Current Status of RCF Program

o Design

 Bus Maintenance Facility Project

 Off-Site Roadway Improvements Project

 Main Terminal Improvements

 Bus Purchase Project

o Construction

 RCF Project

 Upcoming Commission Request

 RCF Program Budget Authorization

 RCF GC/CM Construction Contract

 Change Orders – Conforming Design Development

 Change Orders – Suspension / Restart

 One-Time Change Order Policy Adjustment

 Next Steps

 Future Commission Action Items

Dick King, Barclays Capital, provided current status of the bonds sale for the financing of

the project, noting that the feedback from potential investors was nearly universally

positive.

Commissioner Tarleton commented on the need for staff and Turner Construction to

accurately document, for the historical record, the entire experience of the suspension of

the project as well as the restart, noting the importance of such a record in case of an

audit in the future.

Responding to Commissioner Bryant’s question as to whether or not there was a chance

the Rental Car Industry would change their mind as far as supporting the project, Mr.

Schone assured him that although they were concerned with cost, he was certain that the

industry wanted staff to move forward with the project.

The agenda was returned to Staff Action Items as follows:

b. (01:09:50) Resolution No. 3624, First Reading. Amending and restating

Resolution No. 3599, and authorizing Port staff to raise the Customer Facility

Charge to a level sufficient to pay the Port’s obligations under the Lease

Agreement for the Consolidated Rental Car Facility and requiring Port staff to

raise the Customer Facility Charge to a level sufficient to at all times repay the

Project Financing and Port Investment, as those terms are defined in Resolution

No. 3624.

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Request document: Commission agenda memorandum dated June 12, 2009 from James

R. Schone, Director, Aviation Business Development and Elizabeth Morrison, Senior

Manager, Corporate Finance

Presenters: Ms. Morrison and Mr. Schone

Ms. Morrison provided background explanation of the mechanism for establishing the

Customer Facility Charge (CFC) rate paid by rental car customers. She noted that the

resolution be presented today would amend and restate the previous CFC Resolution, to

provide for the current financing plan so that the CFC can be set to a rate sufficient to pay

the debt service on the bonds, notes and Port funds used to finance the Rental Car

Facility.

Motion for approval of Item 6b – Tarleton

Second – Creighton

Motion carried by the following vote:

In Favor: Bryant, Creighton, Hara, Tarleton (4)

Commissioner Davis was absent for the vote

c. (01:14:30) Resolution No. 3622, Second Reading and Final Passage. Providing

acquisition by purchase and/or condemnation of certain real property located at

14635 Des Moines Memorial Drive South, (King County Tax ID Number

2023.04-9091), in the City of Burien, Washington.

Request document: Commission agenda memorandum dated June 16, 2009 and map

from James R. Schone, Director, Aviation Business Development and Jude P. Barrett,

Manager, Acquisitions and Relocation

Presenters: Mr. Barrett and Stan Shepherd, Manager, Airport Noise Programs

Mr. Barrett noted that staff and the property remained at an impasse regarding the

property value, and therefore were requesting Second Reading and Final Passage of

Resolution No. 3622.

Motion for Resolution No. 3622, Second Reading and Final Passage – Creighton

Second: Tarleton

Motion carried by the following vote:

In Favor: Bryant, Creighton, Hara, Tarleton (4)

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Commissioner Davis was absent for the vote

d. (01:17:30) Resolution No. 3623, First Reading. Providing for acquisition by

purchase and/or condemnation of certain real property located at 14211 Des

Moines Memorial Drive South (King County Tax ID Number 172304-9219), in

the City of Burien, Washington.

Request document: Commission agenda memorandum dated May 19, 2009 and map

from James R. Schone, Director, Aviation Business Development and Jude P. Barrett,

Manager, Acquisitions and Relocation

Presenter: Mr. Barrett

Mr. Barrett noted that an offer had been proposed in late 2008 to the property owner, and

despite numerous attempts to request a counter offer or appraisal of the property, none

had been received, and are therefore hoping this process would help lead to resolution.

Motion for Resolution No. 3623, First Reading - Tarleton

Second – Creighton

Motion carried by the following vote:

In Favor: Bryant, Creighton, Hara, Tarleton (4)

Commissioner Davis was absent for the vote

e. (01:22:48) Authorization for the Chief Executive Officer to approve all work,

purchases and contracts including: advertise, award, administer, prepare,

execute and amend any and all necessary service agreements for the SharePoint

Records and Document Management System project in an amount not to exceed

$800,000.

Request document: Commission agenda memorandum dated June 5, 2009 from Linda

Strout, Deputy Chief Executive Officer and Peter Garlock, Chief Information Officer

Presenter: Mr. Garlock

Mr. Garlock noted that the SharePoint system is intended to replace the current records

and document management system (Hummingbird), in order to resolve technical

problems, improve functionality, and reduce operating costs. He noted that the new

system would be more compatible with Microsoft products currently being used at the

Port.

Motion for approval of Item 6e – Tarleton

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Second – Hara

Motion carried by the following vote:

In Favor: Bryant, Creighton, Hara, Tarleton (4)

Commissioner Davis was absent for the vote

f. (01:34:17) Authorization for the Chief Executive Officer to approve all work,

purchases and contracts including: advertise, award, administer, prepare,

execute and amend any and all necessary service agreements for the Data

Archive Project in an amount not to exceed $560,000.

Request document: Commission agenda memorandum dated June 11, 2009 from Peter

Garlock, Chief Information Officer

Presenter: Mr. Garlock

Mr. Garlock noted that the proposed system would be to provide a better backup of

archival data than is currently used. He also stated this system would be a more

beneficial system in the case of an emergency.

Responding to Commissioner Bryant’s question about which ICT projects are being

deferred in order to proceed with this one, Kim Albert, Senior Manager, IT Business

Services replied that one was the internet redesign project and another was an access

control project. She clarified the project being proposed today was moved forward from

2010 to the current time, and the two being deferred were being ‘switched’ to 2010.

Motion for approval of Item 6f – Creighton

Second – Hara

Motion carried by the following vote:

In Favor: Bryant, Creighton, Hara, Tarleton (4)

Commissioner Davis was absent for the vote

g. (01:39:39) Authorization for the Chief Executive Officer to execute a new

Collective Bargaining Agreement between the International Brotherhood of

Teamsters Local Union No. 117 representing Bus Drivers and Parking Service

Revenue Representatives.

Request documents: Commission agenda memorandum dated May 15, 2009 and

agreement from David Leon, Labor Relations Manager and Gary Schmitt, Labor

Relations Director.

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Presenters: Mr. Schmitt and Mr. Leon

Motion for approval of Item 6g – Hara

Second – Tarleton

Motion carried by the following vote:

In Favor: Bryant, Creighton, Hara, Tarleton (4)

Commissioner Davis was absent for the vote.

7. STAFF BRIEFINGS

b. (01:42:29) Northwest Ports Clean Air Strategy 2008 Implementation Report

Presentation documents: Commission agenda memorandum dated June 15, 2009 and

computer slide presentation from Stephanie Jones Stebbins, Senior Manager, Seaport

Environmental Programs

Presenter: Ms. Jones Stebbins

Ms. Stebbins stated that the official Clean Air Strategy Implementation Report had been

released earlier in the day and would be posted to the Port’s website the following day.

She provided background on the Port’s clean air strategy approach and measures which

had been adopted, which included the following areas:

 Ocean-Going Vessels

 Cargo-Handling Equipment

 Rail

 Harbor Craft

 Trucks

Public Testimony regarding Item 7b was received from the following:

 Heather Weiner, Coalition from Clean and Safe Ports. Ms. Weiner provided

comments on what some other ports are doing related to the clean trucks program.

Ms. Weiner also spoke about her interest in seeing upcoming amendments to the

Port’s terminal leases.

Responding to Commissioner Bryant’s comments about terminal leases, Charlie

Sheldon, Managing Director, Seaport Division, stated that the leases are still in

negotiation, but are on track as far as the anticipated schedule.

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 A written copy of comments dated June 23, 2009 was submitted for the record by

Fred Felleman, Friends of the Earth. A copy of the document is, by reference,

made a part of these minutes, is marked Exhibit ‘A,’ and is on file in Port offices.

c. (02:01:32) Briefing on July 1, 2009 Port Property Insurance Renewal

Presentation documents: Commission agenda memorandum dated June 23, 2009 and

computer slide presentation from Jeff Hollingsworth, Risk Manager

Mr. Hollingsworth noted that the Port’s current property policy is about to expire, and

that the Port is currently working to be both selecting a broker and finalized the purchase

of the coverage for the policy year beginning on July 1, 2009.

Items addressed by Mr. Hollingsworth included:

 Property Insurance Re-cap

 Property Insurance Coverage

o Fire, Wind, Collapse, Impact, Explosion

o Terrorism – Separate Limit

o Construction in Process – Separate Limit

o Rental Car Facility – Separate Builder Risk Policy

 Current Structure of Property Program

o Major Deductibles

o Main Limits Insured

 Underwriting of Program

 Property Insurance Cost Factors

 Major Property Losses (excluding earthquake and environmental)

 Earthquake Insurance Challenges and Options

 Current Capital Projects

 Property Renewal Forecast

8. NEW BUSINESS

Commissioner Bryant provided a brief report on his recent tour of southwest Washington

rail projects, which was taken with Clare Petrich, Port of Tacoma Commission President.

He also commented on a recent trip to central and eastern Washington taken with CEO

Yoshitani and Kurt Beckett, Director of External Affairs. During this trip, Port customer

calls were made and transportation projects were looked at as well.

9. POLICY ROUNDTABLES

None.

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10. ADJOURNMENT

The regular meeting was adjourned at 3:30 p.m.

(A digital recording of the meeting is available on the Port’s website.)

Lloyd Hara

Secretary