Digital recordings of the meeting proceedings and meeting materials are available online – www.portseattle.org.
APPROVED MINUTES
COMMISSION REGULAR MEETING JUNE 27, 2017
The Port of Seattle Commission met in a regular meeting Tuesday, June 27, 2017, in the
International Auditorium at Seattle-Tacoma International Airport, Seattle, Washington.
Commissioners Albro, Bowman, Creighton, and Felleman were present. Commissioner Gregoire
was absent.
1. CALL TO ORDER
The meeting was called to order at 12:05 p.m. by Commission President Tom Albro.
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 two matters relating to litigation and legal risk and performance on a publicly bid
contract. Following the executive session, which lasted approximately 60 minutes, the public
meeting reconvened at 1:19 p.m. Commissioner Albro led the flag salute.
3. SPECIAL ORDERS OF BUSINESS
3a. June 27, 2017, Executive Director Report.
Dave Soike, Interim Executive Director, previewed several items on the day’s agenda and made
announcements regarding Port participation in the Government Alliance on Race and Equity, new
Veterans Fellows for 2017, new airline service to Mexico, and the Duwamish Valley Cumulative
Impact Analysis.
A recording of this part of the meeting has been made available online.
3b. 2016 Economic Development Partnership Program Results Presentation.
Presentation document(s) included a Commission agenda memorandum and presentation slides.
A prospectus describing the Seaside Media Campus was provided at the meeting by the City of
Shoreline and was used during their presentation. The City of Renton provided presentation slides
at the meeting, and Port staff provided a 2016 final report on the 2016 City Economic Development
Partnership Program as a supplemental item on the day of the meeting.
Presenter(s): David McFadden, Managing Director Economic Development; Dan Eernissee,
Economic Development Manager, City of Shoreline; Chris Craig, Economic Development
Specialist, City of Burien; Cliff Long, Economic Development Director, City of Renton; and John
Collum, Community Development Project Manager, City of Renton.
P.O. Box 1209
Seattle, Washington 98111
www.portseattle.org
206.787.3000
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Representatives of the cities participating in the 2016 Economic Development Grant Program
described their communities’ economic development efforts aided by Port funding. Programs
highlighted included development of the Seasound Media Campus in the City of Shoreline,
downtown wayfinding and tourism marketing in the City of Burien, and branding, small business
development, and development of a digital business real estate inventory in the City of Renton.
A recording of this part of the meeting has been made available online.
3c. Recognition of the 2017 Raisbeck Aviation High School Environmental Challenge
Award Winners.
Presentation document(s) included a Commission agenda memorandum and presentation slides.
Presenter(s): Arlyn Purcell, Director Aviation Environment and Sustainability; Steven Rybolt,
Environmental Program Manager; and Troy Hoehne, Raisbeck Aviation High School.
Payton Adams, Charleisha Cox, Matthew Morin, and Brian Phuong were recognized as recipients
of the Port’s 2017 Raisbeck High School Environmental Challenge Award. The students’ land-use
proposal for vacant properties near the Airport included warehouse and flight kitchens using
sustainable building practices and a community program to help maintain and enhance vegetated
areas. The environmental challenge program aims to apply an interdisciplinary approach to true-to-
life environmental challenges in the aviation sector.
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.]
At the request of Port staff and Commissioner Bowman, agenda items 4a and 4f, respectively,
were removed from the Unanimous Consent Calendar. Agenda item 4a was laid on the table
without objection, and agenda item 4f was temporarily postponed for separate discussion and vote.
4a. Approval of the minutes of the special and regular meetings of June 13, 2017. [laid on
the table]
4b. Approval of the Claims and Obligations for the period May 1-31, 2017, in the amount of
$58,041,577.45 including accounts payable check nos. 917377-917885 in the amount of
$4,874,830.91; accounts payable ACH nos. 000002-000312 and accounts payable EFT
nos. 049451-049836 in the amount of $31,410,382.22; accounts payable wire transfer
nos. 014640-014680 in the amount of $12,723,627.03; payroll check nos. 185855-186088
in the amount of $270,058.16; and payroll ACH nos. 805079-808795 in the amount of
$8,762,679.13 for a fund total of $58,041,577.45.
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Request document(s) included a Commission agenda memorandum.
4c. Authorization for the Executive Director to (1) proceed with the Rental Car Facility Fleet
Tracking System project to track and display bus arrival information and provide
related customer service enhancements at Seattle-Tacoma International Airport;
(2) procure required hardware, software, vendor services, and maintenance; and
(3) use Port staff for implementation, for a total project cost not to exceed $1,055,000
(CIP #C800929).
Request document(s) included a Commission agenda memorandum.
4d. Authorization for the Executive Director to (1) proceed with the Enterprise Network
Firewall Upgrade project; (2) procure required hardware, software, vendor services,
and maintenance; and (3) use Port staff for implementation, for a total project cost not
to exceed $1,500,000 (CIP #C800908).
Request document(s) included a Commission agenda memorandum.
4e. Authorization for the Executive Director to use Port Construction Services to repair
damaged stormwater pond nets at Seattle-Tacoma International Airport in 2017 in the
amount of $455,000.
Request document(s) included a Commission agenda memorandum and presentation slides.
As noted above, agenda item 4f was temporarily postponed.
4g. Authorization for the Executive Director to (1) prepare design and construction bid
documents for the Industrial Wastewater System Glycol Management Improvements
project at Seattle-Tacoma International Airport; (2) use Port crews and small works
contracts to purchase and install all necessary equipment and devices; and
(3) advertise and award a construction contract. The amount of this request is
$1,092,000 for a total estimated project cost of $1,142,000 (CIP #C800655).
Request document(s) included a Commission agenda memorandum, wastewater system diagram,
and aerial diagram of the lagoon system.
The motion for approval of consent items 4b, 4c, 4d, 4e, and 4g carried by the following vote:
In favor: Albro, Bowman, Creighton, Felleman (4)
Absent for the vote: Gregoire
A recording of this part of the meeting has been made available online.
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5. PUBLIC TESTIMONY
Public comment was received from the following individual(s):
John Yasutake, Washington State China Relations Council, Seattle, in support of
Aviation Managing Director Lance Lyttle and equity efforts in the airport’s dining and
retail program.
Erik Van Rossum, Unite Here Local 8, in support of food service workers and new
concessions leasing policies of lease group 4.
Lourdes Barredo, Unite Here Local 8, in support of progress for airport dining and retail
workers.
Eddie Rye, Jr., Civil Rights Coalition, regarding the airport dining and retail program and
racial discrimination.
Matt Shelby, Managing Director of Airport Real Estate, Alaska Airlines, in support of the
North Satellite renovations projects, central terminal enhancements, and baggage
system improvements.
James Masoero, General Manager, Delta Air Lines, in support of baggage system
improvements.
Ralph Ibarra, Diverse America Network, regarding the port’s affirmative action plan. Mr.
Ibarra submitted written materials, which are included here as minutes Exhibit A and are
available for public review.
Vince O’Halloran, Puget Sound Ports Council Maritime Trades, regarding the importance
of the Hiram M. Chittenden (Ballard) Locks.
Charles Costanzo, American Waterways Operators, regarding the importance of the
Hiram M. Chittenden (Ballard) Locks.
Joshua Berger, Governor’s Maritime Sector Lead in the Washington Department of
Commerce regarding the importance of the Hiram M. Chittenden (Ballard) Locks.
Chris Woodley, Groundfish Forum, regarding the importance of the Hiram M. Chittenden
(Ballard) Locks.
Abdullahi Jama submitted written comments read aloud by Luis Navarro, Office of Social
Responsibility. These materials are included here as minutes Exhibit B and are available
for public review.
Brian Surratt, Director, City of Seattle Office of Economic Development, read aloud by
Lindsay Wolpa Local Government Relations Manager, regarding the importance of the
Hiram M. Chittenden (Ballard) Locks. These materials are included here as minutes
Exhibit C and are available for public review.
Eugene Wasserman, North Seattle Industrial Association, regarding the importance of
the Hiram M. Chittenden (Ballard) Locks.
A recording of this part of the meeting has been made available online.
The Commission advanced to consideration of –
ITEMS REMOVED FROM CONSENT
4f. Authorization for the Executive Director to execute up to six professional services
indefinite delivery, indefinite quantity contracts for architect services for a total
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capacity not to exceed $9 million. Up to three of these contracts will be set aside for
small businesses. There is no funding associated with this request.
Request document(s) included a Commission agenda memorandum.
Presenter(s): Sean Anderson, Capital Program Leader, Aviation Project Management.
Previously, a similar action request was proposed but laid on the table without objection during the
regular meeting of June 13, 2017.
It was reported that the current form of the request increases the number of contract opportunities
set aside for small businesses to three while balancing the overall size of the contract packages to
preserve their competitiveness and account for the amount of work each covers.
The motion for approval of agenda item 4f carried by the following vote:
In favor: Albro, Bowman, Creighton, Felleman (4)
Absent for the vote: Gregoire
A recording of this part of the meeting has been made available online.
6. DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS
6a. Authorization for the Executive Director to (1) transfer Airport Dining and Retail
Infrastructure Modifications project scope and associated budget of $6,190,000 (CIP
C800638) to the Central Terminal Infrastructure Upgrade project (CIP C800722); (2) increase
this combined CIP budget by $4,032,000 for the construction of the project; (3) use Port
crews and small works contracts for construction work; and (4) advertise and award a
major works construction contract for the Central Terminal Infrastructure Upgrade project.
This authorization is for $4,032,000 for a total estimated project cost of $16,834,000.
Request document(s) included a Commission agenda memorandum and presentation slides. A
concept video of the project area has been made available for public review.
Presenter(s): Aviation Managing Director Lance Lyttle; Capital Project Manager Bradley Benson;
and Senior Business Manager Scott Van Horn.
The context of airport passenger growth and the need to expand dining and retail services, including
expansion into the central terminal mezzanine, was described. Cost increases were discussed in light of
the current boom in construction in the Seattle area and the desire to maintain a high level of service to
the traveling public during construction. Commissioner asked about impacts to central terminal
businesses and opined on various options for providing alternative dining and retail options in the area.
Staff presented a video depicting the central terminal area during construction.
The motion for approval of agenda item 6a carried by the following vote:
In favor: Albro, Bowman, Creighton, Felleman (4)
Absent for the vote: Gregoire
A recording of this part of the meeting has been made available online.
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6b. Authorization for the Executive Director to conduct competitive solicitations and
execute lease and concessions agreements with selected proposers for 12 new
opportunities encompassing 21 units in Airport Dining and Retail Lease Group 4:
Competitive Evaluation Process (CEP) Food – 1; CEP Food – 2; CEP Food – 3; CEP
Food – 4; CEP Food – 5; CEP Food – 6; Request for Proposal (RFP) Food – 7; CEP –
Retail 1; CEP Retail – 2; CEP Retail – 3; CEP Retail – 4; and RFP Retail – 5. This
authorization includes the removal of one unit, NS-2, from Lease Group 3 Food Service
– Small Package 7 and insertion of that unit in Lease Group 4 RFP Food – 7.
Request document(s) included a Commission agenda memorandum, presentation slides, and
quality jobs memorandum of November 11, 2015.
Presenter(s): Aviation Managing Director Lance Lyttle and Senior Business Manager Scott Van Horn.
Mr. Van Horn summarized Commission guidance on the Airport Dining and Retail lease program and
presented the packages comprising Lease Group 4. Changes to the competitive evaluation of lease
proposals made since scoring of Lease Group 3 and including Commission direction were
summarized. These included disqualification of firms not fully compliant with back-wage requirements
under City of SeaTac Municipal Code Chapter 7.45 (City of SeaTac Ordinance 1020 or “Proposition
One”), revised evaluation of proposed wages and medical/retirement benefits, changes to scoring of
small business participation, local concept preference scoring, and labor peace agreement
requirements. Staff continues to propose the use of a competitive selection process.
Commissioners asked about composition of the evaluation team and non-staff observers. There
was discussion on the degree of subjectivity involved in the bid evaluation process.
Commissioner Albro offered an amendment to the proposed Lease Group 4 labor peace
requirement exemption as proposed in the staff presentation, to remove reference to small
business with 35 or fewer badged airport employees and to substitute the stipulation that small
businesses be exempt if they have up to two locations at the airport. He noted the prohibition on
franchisees of national brands would prevent the exemption from applying to Wendy’s or
McDonald’s. He added that the amendment would expand the exemption to existing small
businesses at the airport in support of other Commission priorities for the ADR program, such as
diversifying risk by incentivizing small businesses with more than one location at the airport. This
motion failed to obtain a second.
The motion for approval of agenda item 6b carried by the following vote:
In favor: Bowman, Creighton, Felleman (3)
Opposed: Albro (1)
Absent for the vote: Gregoire
A recording of this part of the meeting has been made available online.
6c. First Reading of Resolution No. 3735: A Resolution of the Port Commission of the Port
of Seattle authorizing the issuance and sale of intermediate lien revenue and refunding
bonds in one or more series in the aggregate principal amount of not to exceed
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$800,000,000, for the purpose of financing or refinancing capital improvements to
aviation facilities and for the purpose of refunding certain outstanding revenue bonds
of the Port; setting forth certain bond terms and covenants; and delegating authority to
approve final terms and conditions and the sale of the bonds.
Request document(s) included a Commission agenda memorandum and draft resolution. A copy of
the final draft of Resolution No. 3735 will be made available upon adoption.
Presenter(s): Corporate Finance Director Elizabeth Morrison.
Ms. Morrison summarized the relevant finance, policy, and tax restrictions applicable to the
$800 million in bonds, part of which represents new debt and part of which is refunding of existing
debt for debt-service savings of over $40 million. The bonds are expected to be issued within six
months. Commissioners commented on this being the Port’s largest-ever bond issuance and noted
the large size of the airport capital investment it represents.
The motion for approval of First Reading of Resolution No. 3735 carried by the following vote:
In favor: Albro, Bowman, Creighton, Felleman (4)
Absent for the vote: Gregoire
A recording of this part of the meeting has been made available online.
6d. Authorization for the Executive Director to: (1) increase project authorization for the
North Satellite Renovation & North Satellite Transit Station Lobbies Project by
$200,000,000; (2) execute Preliminary Work Amendment No. 3 with Hensel Phelps for
up to $200,000,000; (3) authorize Port staff to execute all change orders to the Hensel
Phelps contract within authorized budget and project scope without returning for
additional Commission authorization; and (4) authorize Port Construction Services to
execute small works contracts and use Port crews to support North Satellite
construction (CIP #C800556).
Request document(s) included a Commission agenda memorandum.
Presenter(s): Program Leader George England.
The Commission received a presentation summarizing progress on the project, indicating minimal
negative impacts to Alaska Airlines’ operations, and explaining that the current authorization would
permit project work to continue on schedule until a maximum allowable construction cost (MACC)
and associated budget increase can be authorized in August.
The motion for approval of agenda item 6d carried by the following vote:
In favor: Albro, Creighton, Felleman (3)
Absent for the vote: Bowman, Gregoire
A recording of this part of the meeting has been made available online.
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6e. Authorization for the Executive Director to (1) authorize additional design and project
management funds to expand the capacity of the baggage system at Seattle-Tacoma
International Airport to 60 million annual passengers; (2) use Port crews and small
works contracts to perform additional construction work; and (3) amend Service
Agreement P-00317641 to add $10,160,000 for a total contract value of $31,160,000 to
design this additional capacity. The amount of this request is $637,000 (CIP #C800612).
Request document(s) included a Commission agenda memorandum and presentation slides.
Presenter(s): Capital Project Manager Ed Weitz.
Commissioners received a presentation that explained the need to accelerate the baggage system
work based on the current rate of passenger growth. Despite the need to increase design and
project management funding by $24,937,000, savings returned from phase 1 of $24,300,000
accounts for the current request of only $637,000. The total project budget will increase for the
accelerated capacity needs by a net amount of approximately $126,000,000.
The motion for approval of agenda item 6e carried by the following vote:
In favor: Albro, Creighton, Felleman (3)
Absent for the vote: Bowman, Gregoire
A recording of this part of the meeting has been made available online.
6f. Motion to Be a Signatory to the “We Are Still In” Open Letter Declaring Our
Commitment to Reduce the Threat of Climate Change. [subsequently amended]
Request document(s) included the text of the motion, an amended version of which is attached.
Presenter(s): Commission Specialist Veronica Valdez.
Ms. Valdez presented the text of the motion and the statement in support of the motion and
confirmed that as of today, the Port of Seattle would be the first port authority to endorse the letter.
Commissioners commented on the port’s environmental stewardship record and the business
benefits to reducing carbon emissions.
AMENDMENT
Commissioner Felleman offered an amendment to the motion also to pledge support for the
“Climate Neutral Now” movement of airports striving to become greenhouse-gas-emissions neutral
by mid-century. The amendment was adopted without objection. The text of the motion now reads
as follows:
The Port of Seattle intends to be a signatory to the “We Are Still In” open letter to
the international community and parties to the Paris Agreement declaring our
intent to continue to ensure the U.S. remains a global leader in reducing carbon
emissions.
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We also pledge support for “Climate Neutral Now,” an airport movement
sponsored by the United Nations. Our pledge would state that we will strive
toward greenhouse gas neutral emissions by mid-century, in line with our Century
Agenda greenhouse gas reduction goals, and that we will document our progress
through Airport Carbon Accreditation.
A related amendment to the statement in support of the motion was included at this time adding “in
submitting an open letter” to the third paragraph of the statement. This text is present in the
attached adopted version of the motion. Commissioners requested interlineations to the version of
the We Are Still In letter prepared for their signatures acknowledging their participation as officials
of a port authority. A copy of the executed letter is attached as minutes Exhibit D.
The motion of the Port of Seattle Commission to be a signatory to the “We Are Still In” open
letter declaring our commitment to reduce the threat of climate change, as amended,
(agenda item 6f) carried by the following vote:
In favor: Albro, Bowman, Creighton, Felleman (4)
Absent for the vote: Gregoire
A recording of this part of the meeting has been made available online.
7. STAFF BRIEFINGS
7a. Port of Seattle’s 2017 Affirmative Action Plan Briefing.
Presentation document(s) included a Commission agenda memorandum and presentation slides.
Presenter(s): Employee Relations Senior Manager Cynthia Alvarez.
The presentation included information about the purpose of the port’s Affirmative Action Plan as a
federally mandated process. Ms. Alvarez explained how employee demographics are
benchmarked against local availability of qualified women and minority candidates. She reported
that placement goals have not needed to be set for the port for any of the last three years of
Affirmative Action Plans due to strong performance at the port in its efforts to employ a workforce
representative of the communities from which it recruits and hires employees.
Commissioners discussed the need to continue to grow the pool of qualified employment candidates
from historically underrepresented populations. This was identified as an opportunity going forward,
along with continuation of compensation equity analysis and equity efforts and diversity and inclusion
training. Commissioners urged continued collaboration with other jurisdictions, especially in the area of
inclusion of women and minorities in career preparation in skilled trades.
A recording of this part of the meeting has been made available online.
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7b. Ballard Locks Economic Impact Study Results.
Presentation document(s) included a Commission agenda memorandum, Port of Seattle
presentation slides, presentation slides by the McDowell Group, economic impact study report, and
Ballard Locks informational flyer.
Presenter(s): Maritime Division Managing Director Lindsay Pulsifer and Charles Costanzo,
American Waterway Operators.
Commissioners received a presentation that described the history and economic importance of the
Hiram M. Chittenden locks located in Seattle’s Ballard neighborhood on the Lake Washington Ship
Canal. Despite its robust economic impact, there is concern that operations and maintenance
funding by the Army Corps of Engineers is insufficient to properly maintain the asset and preserve
its regional benefits.
Commissioners Bowman and Felleman moved as follows:
That the Port of Seattle Commission take a position requesting federal funding to
address the Hiram M. Chittenden Locks’ major, non-routine maintenance needs
and to authorize staff to advocate for this funding alongside other members of the
Lake Washington Ship Canal Users Group.
The motion as stated above in support of federal funding for the Hiram M. Chittenden Locks
carried by the following vote:
In favor: Albro, Bowman, Creighton, Felleman (4)
Absent for the vote: Gregoire
A recording of this part of the meeting has been made available online.
8. ADDITIONAL NEW BUSINESS – None.
9. ADJOURNMENT
There was no further business, and the meeting adjourned at 4:28 p.m.
Stephanie Bowman
Secretary
Minutes approved: July 25, 2017.
