Digital recordings of the meeting proceedings and meeting materials are available online – www.portseattle.org.
APPROVED MINUTES
COMMISSION REGULAR MEETING NOVEMBER 14, 2017
The Port of Seattle Commission met in a regular meeting Tuesday, November 14, 2017, at Port of
Seattle offices, Commission Chambers, 2711 Alaskan Way, Seattle, Washington. Commissioners
Albro, Bowman, and Felleman were present. Commissioners Gregoire and Creighton were absent.
1. CALL TO ORDER
The meeting was called to order at 12:06 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 one matter relating to litigation, legal risk, and sale or lease of real estate, and one
matter related to acquisition of real estate. Following the executive session, which lasted
approximately 60 minutes, the public meeting reconvened at 1:17 p.m. Commissioner Albro led the
flag salute.
3. SPECIAL ORDERS OF BUSINESS
3a. November 14, 2017, Executive Director Report.
Dave Soike, Interim Executive Director, previewed several items on the day’s agenda and
announced activities related to the Port’s community giving campaign, observance of Veterans
Day, and new veterans’ fellows.
ANNOUNCEMENT
Commissioner Albro announced that the Port of Tacoma is considering changing its Scheme of
Harbor Improvements to include a prohibition on export of petroleum or fossil-fuel products.
3b. Briefing on proposed interlocal agreement between the City of SeaTac and the Port of
Seattle for a ten-year term beginning February 2018.
Presentation document(s) included an agenda memorandum, presentation slides, and draft
agreement.
Presenter(s): Lance Lyttle, Managing Director, Aviation, and Clare Gallagher, Director, Capital
Project Delivery, Public Affairs.
P.O. Box 1209
Seattle, Washington 98111
www.portseattle.org
206.787.3000
PORT COMMISSION MEETING MINUTES Page 2 of 9
TUESDAY, NOVEMBER 14, 2017
Minutes of November 14, 2017, submitted for review on May 2, 2018, and proposed for approval on May 8, 2018.
The background of interlocal agreement negotiations with the City of SeaTac and the key terms of
the agreement were summarized. Predictability for both the port and the city is an important benefit
of the arrangement. The agreement addresses permitting roles of the two agencies, land-use and
density, public safety, and traffic planning and enforcement. It also addresses fees related to traffic
impacts, permits, and stormwater management. Other topics addressed by the agreement are
business-license compliance, neighborhood parking, and permit recordkeeping. The port and city
have employed an interlocal agreement since 1997.
New elements of the agreement include port contribution to city public safety and traffic
management fees and additional discounting by the city of port stormwater management fees. Also
new is an explicit agreement for the city to serve as the lead agency for state environmental review
for non-airport-related development of port properties within the city. The port will agree to
contribute to a city neighborhood parking program from existing parking taxes as another new
element of the agreement. A new Airport Activity Area boundary is proposed to define consistent
permitting areas for the port and city, including fire permits.
Commissioners asked for clarification on the percentage of property within the city owned by the
port and the size of the Airport Activity Area. The importance of predictable collaboration between
the port and the city was underscored, given the unique relationship of the two organizations.
4. UNANIMOUS CONSENT CALENDAR
[Clerk’s Note: Items on the Unanimous Consent Calendar are not individually discussed, although
commissioners may remove items from the consent calendar for separate discussion and vote in
accordance with commission bylaws.]
Agenda item 4d was removed from the Unanimous Consent Calendar for separate discussion and vote.
4a. Approval of the Claims and Obligations for the period October 1-31, 2017, including
accounts payable check nos. 919948-920484 in the amount of $6,597,482.39; accounts
payable ACH nos. 002929-003623 in the amount of $55,741,559.04; accounts payable
wire transfer nos. 014735-014772 in the amount of $11,779,562.08; payroll check nos.
187656-187934 in the amount of $297,580.64; and payroll ACH nos. 826363-830346 in
the amount of $9,212,284.42 for a fund total of $83,628,468.57.
4b. Authorization for the Executive Director to execute Change Order 10 to Contract MC-
0318654, Central Terminal Stairs Project at Seattle-Tacoma International Airport, to
extend the contract duration by 76 calendar days and for the deductive amount of
$64,508.00. No additional funds are being requested (CIP #C800716).
Request document(s) included an agenda memorandum.
4c. Authorization for the Executive Director to execute an interlocal agreement with the
Northwest Seaport Alliance to implement a series of support service agreements to
allow Port staff to provide services to the NWSA for 2018.
Request document(s) included an agenda memorandum and draft agreement.
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TUESDAY, NOVEMBER 14, 2017
Minutes of November 14, 2017, submitted for review on May 2, 2018, and proposed for approval on May 8, 2018.
As noted above, agenda item 4d was temporarily postponed.
4e. Authorization for the Executive Director to execute an indefinite delivery, indefinite
quantity contract for parking revenue consulting services in the amount of $1,550,000
with a duration of up to five years.
Request document(s) included an agenda memorandum.
4f. Authorization for the Executive Director to execute Economic Development Partnership
Program contracts with the Cities of Carnation, Woodinville, Pacific, Bothel, and Lake
Forest Park to implement local economic development initiatives for an amount not to
exceed $76,265, as detailed below.
Request document(s) included an agenda memorandum, presentation slides, and 2016 Economic
Development Program report.
4g. Authorization for the Executive Director to: (1) advertise and execute a single major
works construction contract comprised of Taxiways A/B Reconfiguration; Taxiway L
Relocation; Taxiway Q Mitigation; 2018 Airfield Pavement Replacement Projects;
B Concourse Industrial Waste System Upgrade; and Taxiway H Signage herein to be
referred to as 2018 Taxiway Improvement Projects and (2) award an irregular bid or bid
greater than 10% over engineer’s estimate, should that occur, with Commission
notification only, provided the total project remains within authorized budget (CIP
#C800914).
Request document(s) included an agenda memorandum and diagram.
Agenda item 4h was removed from the agenda prior to publication.
4i. Authorization for the Executive Director to execute a new collective bargaining
agreement between the Port of Seattle and the International Association of Firefighters,
Local 1257, representing firefighters at the Port of Seattle covering the period from
January 1, 2017, through December 31, 2020.
Request document(s) included an agenda memorandum and draft agreement.
The motion for approval of consent items 4a, 4b, 4c, 4e, 4f, 4g, and 4i carried by the
following vote:
In favor: Albro, Bowman, Felleman (3)
Absent for the vote: Gregoire, Creighton
5. PUBLIC TESTIMONY
An opportunity for public comment was provided, but none was offered at this time.
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TUESDAY, NOVEMBER 14, 2017
Minutes of November 14, 2017, submitted for review on May 2, 2018, and proposed for approval on May 8, 2018.
The Commission advanced to consideration of –
ITEMS REMOVED FROM CONSENT
4d. Authorization for the Executive Director to (1) spend environmental remediation
liability funds for 2018 in the amount of $19,800,000; (2) approve a five-year plan of
$88,800,000 for the Environmental Remediation Liability Program for 2018-2022 of
which an amount estimated not to exceed $30,000,000 will be obligated during 2018
to be spent in future years.
Request document(s) included an agenda memorandum and maps of north, south, and aviation
properties.
Presenter(s): Kathy Bahnick, Senior Manager, Environmental Programs; and Don Robbins, Senior
Environmental Program Manager.
Commissioners asked about use of Model Toxics Control Act funding and job creation resulting
from environmental remediation.
The motion for approval of agenda item 4d carried by the following vote:
In favor: Albro, Bowman, Felleman (3)
Absent for the vote: Creighton, Gregoire
6. DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS
6a. First Reading and Public Hearing of Resolution No. 3738: A resolution of the Port
Commission of the Port of Seattle adopting the final budget of the Port of Seattle for
the year 2018; 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 2018.
Request document(s) included an agenda memorandum, draft resolution, and presentation slides.
A copy of the final draft of Resolution No. 3738 will be made available upon adoption.
Presenter(s): Dan Thomas, Chief Financial Officer; Michael Tong, Assistant Finance Director –
Budget; and Elizabeth Morrison, Director, Corporate Finance.
Previously, a presentation on the preliminary budget for the port’s operating divisions was provided
on October 10, 2017. Written responses to commissioner questions at that time were prepared and
presented for further review on October 24, 2017.
General Information
In summary, the 2018 budget anticipates $670 million in operating revenues and in excess of $422
million in operating expenses. Net operating income for 2018 is forecast above $247 million, and the
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TUESDAY, NOVEMBER 14, 2017
Minutes of November 14, 2017, submitted for review on May 2, 2018, and proposed for approval on May 8, 2018.
2018 capital budget is proposed at slightly more than $878 million with a five-year capital spending
plan at approximately $3.1 billion. The tax levy proposed for 2018 is $72 million, the same as 2017
and 2016. Capital spending at the airport is driven by passenger growth measured as a nearly 50-
percent increase in enplaned passengers.
Full-Time-Equivalent Positions
Whether there is need for new full-time-equivalent positions related to port priorities on energy and
sustainability, equity, priority hire, and women- and minority-owned business enterprise contracting
were discussed. Commissioners expressed the hope that applying continuous process improvement
methodology would eventually be quantified by the ability to redeploy existing personnel to pursue
port priorities rather than adding FTEs to port staff.
Updates to the Preliminary Budget
There is $200,000 proposed for inclusion in the Energy and Sustainability Fund not shown in the
presentation slides. Other changes or refinements since presentation of the preliminary budget on
October 10 were summarized, including increased nonaeronautical revenues and a $1.9 million
increase for airport janitorial services. Commissioners asked that the customer service outcomes
related to the additional spending be reported back in 2018. Other budget updates include additional
funding in conjunction with the new interlocal agreement with the City of SeaTac and additional
revenue from operations of the Northwest Seaport Alliance.
Commissioners commented on consistency of content in the budget document between divisions,
noting the Aviation Division’s description of baseline budget requests in terms of problems/needs and
opportunities. Commissioners opined on the benefit of seeing the financial contributions and
expenses for individual non-Aviation business units early in the budget process for 2018.
Capital Improvement Program
A list of $119 million in Maritime and Economic Development Division capital projects recommended
for inclusion in the port’s five-year capital spending plan was presented. The list of capital projects
recommended for deferral for the five-year period was also presented.
Tax Levy
Regarding the port’s tax levy, it was noted that rising property values, increased housing stock, and
the reduction of the levy from $75.9 million in 2009 to $72 million in 2016, 2017, and 2018 has
resulted in an overall reduction in the port’s property tax millage rate by about 30 percent. The port
has not levied the maximum amount allowed since 1991, foregoing about $491 million in property tax
revenue during that time.
AMENDMENT
Commissioners noted opportunities to improve the recitals, or whereas clauses, of the budget
resolution. The commissioners engaged in a discussion of potential refinements to the proposed
budget for first reading. In particular, clarifications were provided on potential spending for tourism
development and the valet program for cruise passenger baggage in which baggage is conveyed
directly to the airport from the cruise ships. Clarification was also offered regarding investment in
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Minutes of November 14, 2017, submitted for review on May 2, 2018, and proposed for approval on May 8, 2018.
internships as a workforce development tool, feasibility of remote airline baggage check-in at
locations in eastern King County, and funding to explore possible acquisition of Salmon Bay Marina.
Without objection, the commission authorized for inclusion in the budget before second reading the
following provisions:
Funding to explore acquisition of Salmon Bay Marina;
Provision of $200,000 to explore the feasibility of remote airline baggage check-in;
Provision of $100,000 for tourism promotion, including $50,000 focused on ecology
tourism and $50,000 focused on international tourism;
Increased funding to grow the port’s high-school internship program by ten percent to 90
internships; and
Elaboration in the whereas recitals regarding the port’s strategic mission and incorporation
in the budget resolution of a statement of adoption pertaining to the strategic content of the
preliminary budget, as appropriately amended.
Although budget provisions in support of the cruise baggage valet program were not altered by
commission direction at this time, commissioners stressed the need for the service to be monetized
and promoted to relevant stakeholders in the expectation that external funding partners would be
identified in 2018 in order to continue the program.
PUBLIC HEARING on Resolution No. 3738
Upon a motion and second for First Reading of Resolution No. 3738, as amended, Commissioner
Albro declared the public hearing for the resolution open. There was no public testimony offered at
this time, and the public hearing was closed.
The motion for approval of First Reading of Resolution No. 3738, as amended, carried by the
following vote:
In favor: Albro, Bowman, Felleman (3)
Absent for the vote: Gregoire, Creighton
6b. First Reading of Resolution No. 3739: 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, 2018, and repealing all prior resolutions
dealing with the same subject, including Resolution No. 3727 as amended by
Resolution No. 3734.
Request document(s) included an agenda memorandum, presentation slides, draft resolution,
redline, summary of changes, and pay range exhibit. A copy of the final draft of Resolution
No. 3739 will be made available upon adoption.
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Minutes of November 14, 2017, submitted for review on May 2, 2018, and proposed for approval on May 8, 2018.
Presenter(s): Ann McClellan, Total Rewards Manager, Human Resources, and Jeniann Kaelin,
Total Rewards Consultant, Human Resources.
Previously, a presentation on Resolution 3739 was provided on October 24, 2017.
Commissioners asked for clarification on the new parameters affecting dual reporting of selected
positions to both the Executive Director and the Port Commission.
The motion for approval of First Reading of Resolution No. 3739 carried by the following vote:
In favor: Albro, Bowman, Felleman (3)
Absent for the vote: Creighton, Gregoire
6c. Authorization for the Executive Director to increase the Marine Stormwater Utility 2018
rates by 7.75 percent.
Request document(s) included an agenda memorandum and presentation slides.
Presenter(s): Stephanie Jones Stebbins, Managing Director, Maritime Division and Director,
Marine Stormwater Utility, and Srini Pendikatla, Stormwater Utility Program Manager.
Staff provided a summary of the port’s efforts as the first port in the U.S. to create its own
stormwater utility and described the utility’s rates as well below those of the City of Seattle.
Assessment of the marine stormwater infrastructure for rehabilitation is underway. Commissioners
commented on the benefit that the port’s operation of its own utility makes it possible to put
revenue from stormwater fees to work directly improving maritime impacts on the health of Puget
Sound. Commissioners asked about permeability conditions and fee assignment models.
The motion for approval of agenda item 6c carried by the following vote:
In favor: Albro, Bowman, Felleman (3)
Absent for the vote: Creighton, Gregoire
6d. Authorization of construction funding and for the Executive Director to advertise and
award a major public works contract for (1) the replacement of the Shilshole Bay
Marina restroom and laundry facilities for an amount not to exceed $8,500,000 for a
total project authorization of $10,100,000 and (2) the replacement and overlay of
Shilshole Bay Marina paved parking areas for an amount not to exceed $1,750,000 for a
total project authorization of $2,000,000 (CIPs #C800356 and #C800355).
Request document(s) included an agenda memorandum, presentation slides, Attachment A, and
Attachment B.
Presenter(s): Stephanie Jones Stebbins, Managing Director, Maritime Division; Tracy McKendry,
Director, Recreational Boating; and Mark Longridge, Capital Project Manager, Maritime Project
Management.
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Minutes of November 14, 2017, submitted for review on May 2, 2018, and proposed for approval on May 8, 2018.
Customer service facility improvements at Shilshole Bay Marina were summarized. Commissioners
commented on energy efficiency improvements and storage uses at the marina and asked about
the schedule for public engagement on the project.
The motion for approval of agenda item 6d carried by the following vote:
In favor: Albro, Bowman, Felleman (3)
Absent for the vote: Creighton, Gregoire
6e. Authorization for the Executive Director to (1) increase the project budget for the Flight
Corridor Safety Program – Phase 1 by $2,600,000 for a new total of $5,806,000;
(2) execute change order(s) in excess of $300,000 as necessary to complete the tree
removal work; and (3) advertise and execute a major works construction contract to
remove invasive species and complete revegetation for Flight Corridor Safety Program
Phase 1 at Seattle-Tacoma International Airport.
Request document(s) included an agenda memorandum and site plan.
Presenter(s): Mike Ehl, Director, Airport Operations, and Ralph Wessels, Capital Project Manager,
Aviation Project Management.
In response to commission questions, staff confirmed that the tree removal and replanting efforts
described in the current phase of the project are for areas P-4 and P-5.
The motion for approval of agenda item 6e carried by the following vote:
In favor: Albro, Bowman, Felleman (3)
Absent for the vote: Creighton, Gregoire
6f. Authorization for the Executive Director to (1) execute a lease amendment for office
space for the Capital Development Department and Central Procurement Office Major
Works Department to move into the SeaTac Office Center for $6,829,000 and (2) execute
contracts to purchase office furniture and design and install communications
infrastructure to support business needs for $2,228,000 (CIP #C800982).
Request document(s) included an agenda memorandum and proposed lease amendment.
Presenter(s): Ralph Graves, Senior Director, Capital Development, and James Jennings, Senior
Manager, Aviation Properties.
The need for additional office space for increased aviation division staffing and the relative costs
for office space were presented.
The motion for approval of agenda item 6f carried by the following vote:
In favor: Albro, Bowman, Felleman, (3)
Absent for the vote: Creighton, Gregoire
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Minutes of November 14, 2017, submitted for review on May 2, 2018, and proposed for approval on May 8, 2018.
7. STAFF BRIEFINGS
Agenda items 7a and 7b were removed from the agenda prior to publication.
7c. International Arrivals Facility Quarter 3 Program Update (CIP #C800583).
Presentation document(s) included an agenda memorandum.
Presenter(s): Ralph Graves, Senior Director, Capital Development, and David Brush, IAF Program
Leader.
The quarterly update on the International Arrivals Facility program included a brief summary of
current project work and accomplishments. Regarding negotiations on the guaranteed maximum
price, Mr. Brush explained that negotiations have been ongoing for the past year with nine key cost
elements under consideration. Not all of the work related to the cost elements has yet been bid, so
much of the negotiation is based on estimates. He reported that the team hopes to conclude
negotiations and identify the guaranteed maximum price by the end of 2017. In the meantime, work
continues to keep to the project schedule. Project design is at 90 percent.
Commissioners asked that the time spent in negotiating the guaranteed maximum price be
monetized and factored into a future assessment of the lessons learned from the IAF project, which
is the first to be attempted by the Port of Seattle using the progressive design-build delivery model.
New considerations affecting completion of the arrivals-hall portion on the project include discovery of
environmental contamination on the site, which has had a greater impact on schedule than project
budget. Design of the arrivals hall may also be affected by emergent technology that employs facial
recognition software and may change the design related to the flow and queuing of passengers. There
is potential for facial recognition to add four-to-six months to final project completion.
8. ADDITIONAL NEW BUSINESS – None.
9. ADJOURNMENT
There was no further business, and the meeting adjourned at 5:24 p.m.
Prepared: Attest:
Paul J. White, Commission Clerk Ryan Calkins, Commission Secretary
Minutes approved: May 8, 2018.
