March 10 SM 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 SPECIAL MEETING MARCH 10, 2009

The Port of Seattle Commission met in a special meeting at 1:00 p.m., Tuesday, March

10, 2009 at the Nordic Heritage Museum, 3014 NW 67

Street, Way, Seattle, WA.

Commissioners Bryant, Davis, and Hara and Tarleton were present. Commissioner

Creighton was absent.

1. CALL TO ORDER

The special meeting was called to order at 1:00 p.m. by Bill Bryant, Commission

President.

2. EXECUTIVE SESSION pursuant to RCW 42.30.110

None.

PLEDGE OF ALLEGIANCE

3. APPROVAL OF MINUTES

None.

4. SPECIAL ORDER OF BUSINESS

None.

5. (00:01:08) UNANIMOUS CONSENT CALENDAR

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

PORT COMMISSION MINUTES OF THE SPECIAL MEETING

TUESDAY, MARCH 10, 2009 P. 2

March 10 SM Min

a. Approval of payment of outstanding Claims and Obligations for the period of

February 28, 2009

b. Request for approval to issue Change Order #062 for the Terminal 91 Cruise

Ship Terminal Project Contract MC-0314783

Motion for approval of Unanimous Consent Calendar – Davis

Motion carried by the following vote:

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

Commissioner Creighton was absent for the vote.

Marine Item 7a was advanced on the agenda as follows:

7. MARINE ITEMS

a. (00:02:19) Authorization of construction and approval to advertise dock

improvements and repairs needed for barge layberth locations at Terminal 25,

Pier 28, and Terminal 46 for an estimated amount of $250,000, for a total new

authorization of $300,000.

Request document: Commission agenda memorandum dated January 28, 2009 from

Mike McLaughlin, Director, Cruise and Industrial Properties and Mark Longridge,

Capital Project Manager

Presenters: Mr. McLaughlin and Mr. Longridge

Commissioner Davis commented that this is the sort of expenditure we need to ensure we

can maintain a vital working waterfront.

Motion for approval of Item 7a – Davis

Motion carried by the following vote:

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

Commissioner Creighton was absent for the vote.

Real Estate Item 10a was advanced on the agenda as follows:

10. REAL ESTATE

a. (00:06:24) Request for authorization for design, permitting and construction of

temporary landscaping and flatwork improvements at the Shilshole Bay Marina

PORT COMMISSION MINUTES OF THE SPECIAL MEETING

TUESDAY, MARCH 10, 2009 P. 3

March 10 SM Min

restaurant pad site for an amount Not To Exceed $300,000, using existing funds

from the previously approved $80,000,000 project.

Request document: Commission agenda memorandum dated February 20, 2009 and

computer slide presentation from Mark Longridge, Capital Project Manager, Capital

Development Division, Melinda Miller, Director, Portfolio and Asset Management, Real

Estate Division, and Darlene Robertson, Director, Harbor Services, Real Estate Division.

Presenters: Mr. Longridge and Melinda Miller, Manager, Seaport Commercial

Development

Ms. Miller stated that the request included only a minor change in scope and schedule,

and no change in budget.

Slides were provided showing the current condition of the site where proposed

redevelopment would be done. Ms. Miller commented that they would still like to see a

restaurant at the site, and estimated that it could be in three to five years at minimum.

Commissioner Hara stated his approval of the idea of having a new restaurant at the site

at some point, and also commented on the need to have adequate parking available there.

Motion for approval of Item 10a – Tarleton

Motion carried by the following vote:

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

Commissioner Creighton was absent for the vote

Commissioner Bryant noted that following Policy and Staff Briefings, the meeting would

be opened once again for a third Policy Roundtable to discuss issues related to the

Working Waterfront, and public comment would also be taken. He commented that there

would be two panels - one would be about current issues at Fishermen’s Terminal and the

other would be about ongoing questions regarding the Alaskan Way Viaduct

replacement.

6. POLICY AND STAFF BRIEFINGS

a. (00:18:45) Working Waterfront – Real Estate and Seaport Overview

Presentation documents: Commission agenda memorandum dated February 20, 2009 and

computer slide presentation from Joe McWilliams, Managing Director, Real Estate

Division and Charlie Sheldon, Managing Director, Seaport Division

Presenters: Mr. McWilliams and Mr. Sheldon

PORT COMMISSION MINUTES OF THE SPECIAL MEETING

TUESDAY, MARCH 10, 2009 P. 4

March 10 SM Min

Staff provided an overview of the holdings of the Port, including Cargo Terminals;

Terminal 90/91; the Grain Terminal; Central Waterfront properties, which include the

World Trade Center, Pier 69, Bell Harbor International Conference Center, and Bell

Harbor Marina; as well as the Recreational Marinas, Maritime Industrial Center, and

Fishermen’s Terminal. They commented on the economic impacts of the facilities and

also noted direct, indirect, and induced jobs which were mentioned in the recent

Economic Impact Study of the Port.

Mr. McWilliams noted a Citizens’ Advisory Group which is seeking proposed city code

changes which would require a 10-15 foot setback from the water, in order to protect the

environment at water’s edge, which could change the viability of long-term plans for the

planned restaurant discussed in the earlier presentation.

Mr. McWilliams stated that beginning this fall, the Port would be adopting a liability

insurance requirement for both recreational and commercial boat owners.

Responding to Commissioner Hara’s questions about the potential for future growth and

land purchases, specifically for off-dock growth, Mr. McWilliams stated that the Port has

been looking at three Crowley properties and they are currently looking at environmental

cleanup issues. Mr. Sheldon noted that we currently have the capacity to handle a lot

more containers than we are handling today.

Mr. McWilliams spoke about deferred maintenance issues needing to be addressed,

including failing roofs; failing fenders/pilings/dolphins; failing piling coatings;

settlement/heaving paving; and shifting foundations and building settlement.

During discussion of net lockers at Fishermen’s Terminal, Acting Fire Marshal, Gary

English addressed the Commission and noted that over time there has been a significant

change in how the net lockers are used, commenting on resulting significant risk due the

extraordinary and higher hazards at the facility. He encouraged collaborative work to

mitigate problems and mentioned that the sprinkler systems at the facility were not

designed to handle current usage.

Mr. English stated that he would be recommending that a notice be written to the

Department of Planning and Development to look at whether or not the facility is in code

violation, and commented that the Commission would need to make a decision on how to

proceed further.

Mr. McWilliams commented on another issue at Fishermen’s Terminal, that being fish

sales and fees for the use of the West Wall for direct sales off the vessels.

POLICY ROUNDTABLE DISCUSSION FOLLOWED:

(1) (00:56:13) FISHERMEN’S TERMINAL

PORT COMMISSION MINUTES OF THE SPECIAL MEETING

TUESDAY, MARCH 10, 2009 P. 5

March 10 SM Min

The Fishermen’s Terminal panel members::

 Kris Mullan, Project Manager at AFCO & Sons, past FTAC (Fishermen’s

Terminal Advisory Committee) and FTAC Member

 David Harsilla, FTAC Chair

Mr. Mullan commented on the need for teamwork in order to come up with a solution to

the problems at Fishermen’s Terminal, and stated that before the Port acts, they should

ask for more input from the tenants.

Mr. Harsilla commented on steady progress that has been made over the years at

Fishermen’s Terminal, but commented that the facility needs to be upgraded to attract

more customers and create more economic development.

Mr. Mullan responded that with the design of the new docks, we are looking to the future,

and commented on the availability of resources just outside of Fishermen’s Terminal

where anyone can bring their boat.

Mr. Mullan commented that fuel costs are a major factor in making the decision to stay in

Seattle or go to Alaska and commented that rates are still attractive in Seattle, and Seattle

is more of a one-stop shopping area, which could attract more vessels.

Commissioner Davis wondered if there is a tipping point where competition from Alaska

could pull fishermen away from Seattle. Mr.Mullan replied that it is definitely related to

dollars and cents, and that people will do what they can in order to get more business, and

commented again on the affordable moorage rates at Fishermen’s Terminal.

Mr. Harsilla he believes the issue of a tipping point is a relevant one and commented that

competition is stiff. He noted that other ports have done a good job of meeting the needs

of their fleets, but commented on the advantage of the lockers at Fishermen’s Terminal.

He noted that the majority of people only use their lockers for fishing gear, and that now

it is common for fishermen to require more gear than in the past since they frequently

work with multiple fisheries. He commented on the need to focus on the vision of how

the Port wants to support fishermen.

Mr. Harsilla commented on the need for discussion about why there aren’t more fish at

Fishermen’s Terminal with the number of vessels that are there, by this meaning a fish

market. He noted that the Port policies are old and do not reflect the current needs of the

fishermen.

Commissioner Davis agreed that discussion regarding fish sales at the terminal would be

useful and she would be interested in how many fishermen would be interested in selling

at the docks.

PORT COMMISSION MINUTES OF THE SPECIAL MEETING

TUESDAY, MARCH 10, 2009 P. 6

March 10 SM Min

CEO Yoshitani commented that it might be helpful to find other Fishermen’s Terminals

that may have best management practices which could be used as a model for the Port of

Seattle.

Commissioner Tarleton summarized points she noted during the discussion, which

included a competitive advantage; we have maintained competitive cost structures; there

has been a focus on safety; and that there is an eco system involved in the issues

discussed.

Mr. Mullan stressed the need to look out farther than 10-20 years; more like 30-50 years.

A five minute recess was called, and the meeting was reconvened for the second Policy

Roundtable.

(2) (01:52:45) ALASKAN WAY VIADUCT REPLACEMENT

The Alaskan Way Viaduct Replacement panel members:

 Warren Aakervik, President, Ballard Oil Co.

 Bob Donegan, President, Ivar’s

 John Odland, Vice-president, MacMillan-Piper and Chair of MIC Executive

Committee

 Bill Sharp, Vice-president for Port Operations and Fleet Security for Holland

America Line

 Kim Suelzle, President, City Ice Cold Storage

Prior to moving into the panel discussion of the item, Port staff provided a briefing on

current Viaduct issues, and a computer slide presentation was given.

Presenters: Mike Merritt, POS Government Relations Manager; Ron Paananen,

Washington State Department of Transportation (WSDOT); and Bob Powers, Seattle

Department of Transportation (SDOT).

Mr. Merritt provided a brief overview status of the current Viaduct program status.. He

stated that the focus of today’s presentation would be on freight connectivity and the

operation of the portals, and noted that issues regarding the SR99 corridor are critical.

He also commented on current state legislation regarding the Viaduct option, noting that

a considerable amount of discussion was still anticipated.

Mr. Merritt commented that the Port relies on having an efficient transportation system,

noting that the current choice should achieve a balance of job retention; sustainable

regional economic vitality, and environmental benefits.

Items also addressed included:

 Maximizing jobs and economic benefits

PORT COMMISSION MINUTES OF THE SPECIAL MEETING

TUESDAY, MARCH 10, 2009 P. 7

March 10 SM Min

 Ensuring efficient access to working waterfront

 Enhancing the waterfront environment

 Replacing capacity for long-term regional growth

 Supporting seawall improvements

Mr. Paananen recognized the importance of the questions related to portals and how they

fit into the current plan for the bored-tunnel option. He provided an overview of the

current plans for the bored tunnel.

Mr. Powers focused on mobility to and from State Route 99 and downtown areas, and

provided a series of maps showing various access points, both northbound and

southbound.

Mr. Paananen stated that working groups would be established as the design goes forward

in order to address issues regarding the north portal, the south portal, and waterfront

areas. Commissioner Tarleton expressed interest in hearing more about the working

groups, noting that people in West Seattle and the downtown area are very focused on the

south portal.

Mr. Aakervik reviewed options that had been discussed by the stakeholders group, noting

that the stakeholders hadn’t intended to make the bored tunnel the final option, but rather

continue exploring it as one of the options. He noted his concern over the bored tunnel

option, stating that he felt it would create a lot of problems for freight and for the public

as a whole. He commented on the importance of keeping the commercial fishing

industry and the commercial transportation industry in the city. He stated that he believes

an elevated structure would still be the best option.

Mr. Donegan, spoke representing the five piers between 54 and 60. Areas of importance

mentioned were the need for the Port to serve as the voice of tourism; to lobby for

capacity, transport, freight, and maritime; to use expertise to serve as experts to the

project team on the seawall design; to encourage the project team to do discretionary

work in the off-season; to remind decision-makers of the importance of this route as a

state highway; to remember growth and the importance of a solution that accommodates

growth; to encourage more transit to the waterfront; and to lend credibility to the

community, which is filled with misconceptions regarding the project.

Mr. Odland stressed that he felt the two major concerns are maintaining capacity and

minimizing construction disruption. He stated that he is against a surface street and also

an elevated structure as options, and commented that the issue of the portals is a major

concern of the bored tunnel option. He said that Spokane Street and Mercer are huge

issues. He commented on the importance of considering special events, tourist season,

and cruise season when doing traffic analyses. He reiterated the importance of focus on

East-West connectivity.

PORT COMMISSION MINUTES OF THE SPECIAL MEETING

TUESDAY, MARCH 10, 2009 P. 8

March 10 SM Min

Mr. Sharp commented on the importance of focus on the cruise industry, noting that there

is an opportunity for future growth and increased traffic. He noted concern about

corridor portals and inefficient links to both the Airport and Pier 91, not only buses, but

taxis and limousines as well. He said he believes the concerns over traffic on Mercer had

been understated.

Mr. Suelzle stated that he is not wedded to any certain solution to the viaduct

replacement, but that it should be dependent on good access to Pier 91, and needs to

address capacity issues.

Discussion followed about the importance of considering times when events are taking

place at Seattle Center, and the impacts of that additional traffic.

Commissioner Tarleton spoke of the planning assumptions and the need to have credible

sources for the forming of those assumptions. There was also discussion of incorporating

tourist use of the roads into the planning assumptions.

Responding to Commissioner Tarleton’s question of the possibility of carrying oil by

barge rather than by road, Mr. Aakervik stated that due to environmental regulations, that

was not a viable option.

Comments were made about the need to work closely with traffic planners as well as to

listen to the stakeholders.

Mr. Odland commented about keeping in mind the movement of employees into both the

north and south industrial areas, and that this should be considered in the planning

process.

Public Comment regarding Fishermen’s Terminal was received from the following:

 Peder Hvatum. Mr. Hvatum commented on the sprinkler systems in the lofts and

commented on the need to come up with a solution to bring them up to code.

 Peter Knutson, Puget Sound Harvesters. Mr. Knutson spoke about the importance

of maintain jobs in the fishing industry and warned against a heavy-handed

approach with new policies. A written copy of comments was also submitted by

Mr. Knutson, is, by reference, made a part of these minutes, is marked Exhibit

‘A,’ and is on file in Port offices.

Public Comment regarding the Viaduct Replacement was received from the following:

 Robin Guevarra, South Park Resident. Ms. Guevarra expressed concern over the

current bored-tunnel option, specifically with the lack of access at the north and

south ends.

 Gene Hoglund, Working Families for an Elevated Viaduct Replacement. Mr.

Hoglund stated that he is against the bored-tunnel replacement option and stated

concerns over the lack of connectivity at the north end. Mr. Hoglund submitted a

PORT COMMISSION MINUTES OF THE SPECIAL MEETING

TUESDAY, MARCH 10, 2009 P. 9

March 10 SM Min

copy of written document for the record, is, by reference, made a part of these

minutes, is marked Exhibit ‘B,’ and is on file in Port offices.

 Tom Tanner, Magnolia Community Club. Mr. Tanner expressed concern on

behalf of Magnolia residents about the lack of north portal access in the current

replacement option. He also stated concern over the Mercer Street option.

 Eugene Wasserman, North Seattle Industrial Association. Mr. Wasserman stated

that he believes north-south connectivity issues have not been sufficiently

addressed in the current bored-tunnel option.

The agenda was returned to Policy and Staff Item 6b as follows:

POLICY AND STAFF BRIEFINGS

b. (03:57:15) Capital Improvement Projects Report for the Fourth Quarter, 2008

Presentation documents: Commission agenda memorandum dated February 20, 2009,

computer slide presentation and report from Ralph Graves, Managing Director, Capital

Development Division

Commissioners concluded that since they had all received and reviewed the written report

on Capital Projects, it would not be necessary at the time for a verbal briefing, and that if

they had any questions, they would contact staff.

8. AVIATION ITEMS

None.

9. CAPITAL DEVELOPMENT

None.

11. GENERAL BUSINESS

None.

12. NEW BUSINESS

(03:59:05) Public comment was received from the following individual:

 Will Knedlik, Kirkland. Mr. Knedlik stated his support of the Commission

taking input from stakeholders regarding the Viaduct replacement and commented

on the need to consider impacts to those on the East side and on the I-405

corridor. Mr. Knedlik also asked the Commission to consider asking Sound

 Transit to contribute to the acquisition of the BNSF rail line

PORT COMMISSION MINUTES OF THE SPECIAL MEETING

TUESDAY, MARCH 10, 2009 P. 10

March 10 SM Min

13. ADJOURNMENT

There being no further business, the meeting was adjourned at 5:04 p.m.

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

Lloyd Hara

Secretary