Digital recordings of the meeting proceedings and meeting materials are available online – www.portseattle.org.

APPROVED MINUTES

COMMISSION SPECIAL MEETING DECEMBER 19, 2017

The Port of Seattle Commission met in a special meeting Tuesday, December 19, 2017, at Port of

Seattle Headquarters, Commission Chambers, 2711 Alaskan Way, Seattle, Washington.

Commissioners Albro, Bowman, Creighton, Felleman, and Gregoire were present.

1. CALL TO ORDER

The meeting was called to order at 12:02 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 sale or lease of real estate, litigation, and legal risk and one matter

related to performance of public employee(s). Following the executive session, which lasted

approximately 45 minutes, the public meeting reconvened at 1:20 p.m. Commissioner Albro led the

flag salute.

3. SPECIAL ORDERS OF BUSINESS

3a. Recognition of Commissioners Creighton and Albro.

Commissioners commented on the service of Commissioners Creighton and Albro, which

concludes at the end of 2017, and presented them each with gifts. Commissioners Creighton and

Albro made brief remarks.

3b. Motion appointing Stephen P. Metruck as Port of Seattle Executive Director.

No request documents were provided in advance of the meeting, but the adopted version of the full

text of the motion is attached as minutes Exhibit A. An executed copy of the executive director’s

employment agreement is attached as minutes Exhibit B.

Commissioners introduced Stephen P. Metruck and introduced the following motion to appoint him

as the Port of Seattle’s Executive Director:

It is hereby moved by the Port Commission of the Port of Seattle that Stephen P.

Metruck be appointed as the Port of Seattle Executive Director. Commission President

Elect, Courtney Gregoire, is authorized to sign an employment agreement of up to

three years with Mr. Metruck. The employment agreement includes an annual base

salary of $350,000, provisions for performance review and pay increases and a

P.O. Box 1209

Seattle, Washington 98111

www.portseattle.org

206.787.3000

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standard benefits package available to Port employees. A copy of the employment

agreement is included as Attachment A to this motion.

Commissioners commented on the selection process, the range of candidates considered, and the

qualities wanted for a new executive director. They noted Mr. Metruck’s past experience as a

retired Rear Admiral with the U.S. Coast Guard serving as Commander of Sector Puget Sound and

as the Coast Guard’s Chief Financial Officer, among other assignments. Mr. Metruck offered brief

remarks of appreciation, and the following individuals commented on his selection as Port of

Seattle Executive Director:

 John W. Lockwood, Rear Admiral, U.S. Coast Guard, retired, and President, Seattle

Marine Business Coalition

 Mike Moore, Vice President, Pacific Merchant Shipping Association

 Regina Glenn, President and CEO, Pacific Communications

The motion for approval of agenda item 3b carried by the following vote:

In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5)

RECESSED AND RECONVENED

The meeting was recessed at 1:53 p.m. and reconvened at 2:30 p.m., chaired by Commissioner Albro.

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.]

4a. Revised Energy and Sustainability motion of the Port of Seattle Commission.

Request document(s) included a draft motion, redline, evaluation framework, resource

assessment, and resource allocation. The adopted version of the full text of the motion is attached

as minutes Exhibit C. The text of the Century Agenda Strategies and Objectives, as amended by

this and other motions of December 19, is attached as minutes Exhibit D.

The text of the motion reads as follows:

Moved, that the Port of Seattle shall take the following actions:

1. Develop a Port Sustainability Evaluation Framework to assist the Port in meeting its

39 greenhouse gas reduction and sustainability goals.

2. Select up to four pilot projects, divided between the airport and maritime, beginning

with a solar project on Pier 69, to test and validate the framework and determine

how to incorporate the following environmental and societal components into the

framework to be used to more fully inform the Commission of project proposals

including:

a. Reduce greenhouse gas emissions

b. Increase energy resilience

c. Protect public health and the environment

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d. Support local economic development

e. Advance racial and social equity

f. Leverage partnerships

g. Advance innovation

3. Evaluate and recommend methods for valuing and internalizing the external costs of

carbon port-wide.

4. Adequately resource sustainability efforts to meet the recently amended Century

Agenda greenhouse gas emission goals and to implement the Energy and

Sustainability Committee recommendations.

5. Amend the Century Agenda to add Scope 2 goals. With the amendment, the

greenhouse gas emission reduction goals will be as follows:

a. Scope 1 emissions, which are direct greenhouse gas emissions from Port

owned or controlled sources, shall be:

i. 15 percent below 2005 levels by 2020. This advances the initial Century

Agenda goal by 17 years.

ii. 50 percent below 2005 levels by 2030. This advances the initial Century

Agenda goal by 7 years.

iii. Carbon Neutral by 2050 OR Carbon Negative by 2050. This creates a new

long-term stretch goal.

b. Scope 2 emissions, which are indirect greenhouse gas emissions from

consumption of purchased electricity, heat, or steam. The new Port-wide goals

for Scope 2 shall be:

i. 15 percent below 2005 levels by 2020.

ii. 50 percent below 2005 levels by 2030.

iii. Carbon Neutral by 2050 OR Carbon Negative by 2050.

c. Scope 3 emissions, which are greenhouse gas emissions over which the Port

has influence, not direct control. The new Port-wide goals for Scope 3 shall

be:

i. 50 percent below 2007 levels by 2030.

ii. 80 percent below 2007 levels by 2050.

6. Work with the Northwest Seaport Alliance through the Port of Seattle’s Environment

and Sustainability Center of Expertise (COE) to advance mutually shared goals,

whenever practicable.

7. The COE is directed to present the four proposed pilot projects to the Commission

within 90 days of passage of the 2018 budget, to include a proposed timeline for

completion of the pilot projects.

8. The COE will meet with key stakeholders across the Port including the Project

Management Group (PMG), Engineering, Facilities and Infrastructure, lease teams and

other teams as necessary to implement and review the pilot projects. The pilot project

results will be presented to Commission, with a recommended Policy Directive.

9. The COE will report progress twice yearly on the Century Agenda greenhouse gas

emission reduction goals and will maintain a public-facing environmental scorecard

reflecting that progress.

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The motion for approval of agenda item 4a carried by the following vote:

In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5)

5. PUBLIC TESTIMONY

Additional public comment (see also agenda item 3b above) was received from the following

individual(s):

 Ralph Ibarra, President, Diverse America Network, regarding women- and minority-

owned business enterprises.

 Dan Seydel, CEO, Entrepreneurial Institute of Washington, regarding women- and

minority-owned business enterprises.

 Christina Greaves, Uber, regarding airport ground transportation.

 Cindi Laws, Director/Lobbyist, Wheelchair Accessible Taxi Association, regarding airport

ground transportation.

 Henry Yates, Yates Consulting, regarding diversity in contracting and the service of

Commissioners Albro and Creighton.

ANNOUNCEMENTS

Commissioner Albro commented on the derailment of an AMTRAK train bound from Seattle to

Portland and expressed the Commission’s sympathies to the victims. Interim Executive Director

Soike noted the participation of port resources at the site of the derailment near DuPont,

Washington.

Mr. Soike announced the death of actively serving Port of Seattle Fire Captain Charles Vona,

following an eight-year struggle with a brain tumor, and extended condolences to Captain Vona’s

family.

6. DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS

6a. Second Reading and Final Passage of Resolution No. 3742: A resolution of the Port

Commission of the Port of Seattle adopting bylaws governing the organization and

transaction of business of the Port of Seattle Commission and repealing Resolutions

No. 3611, 3672, 3673, 3689, 3690, 3733, and all other resolutions dealing with the same

subject matter.

Request document(s) included a Commission agenda memorandum, draft resolution, appendix,

and amendments. A copy of the final draft of Resolution No. 3742 will be made available upon

adoption.

Presenter(s): Paul J. White, Commission Clerk.

Previously, the Commission approved First Reading of Resolution No. 3742 on December 5, 2017,

and considered a presentation on potential amendments to the resolution on December 12, 2017.

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Mr. White summarized the key principles represented by the changes incorporated into the new

proposed commission bylaws and thanked commissioners for their participation in considering and

providing refinements to the proposed text in a short time frame.

AMENDMENTS

Commissioners considered several amendments to the text as originally proposed, as follows:

Amendments 1, 2, 3, 4, 5, 6, 9, 10, 11, 13, and 14 were summarized. These amendments have the

following effects:

 Phrasing improvements and clarifications;

 Creation of the requirement that policy-development matters be referred to committee and

provision of a way to discharge matters from committee quickly for action by the

commission in public session;

 Articulation of processes related to 24-hour, special meeting notices;

 Creation of a 24-hour filing deadline for amendments during public session and application

of a two-thirds vote for passage of late-filed amendments;

 Restoration of a requirement to record executive sessions for review by outside counsel;

 Broadening the latitude of the president to speak on behalf of the commission on topics

consistent with policies, statements, and actions of the commission;

 Refinements to the commission’s object statement;

 Inclusion of reference to the commission’s responsibility to uphold the port’s statement of

values and port code of ethics and commission code of ethics;

 Clarification of the commission’s collective role in recessing or adjourning a disrupted

meeting; and

 Simplification of the required contents of committee charters.

The motion for adoption of Amendments 1-6, 9-11, 13, and 14 carried by the following vote:

In favor: Albro, Bowman, Felleman, Gregoire (4)

Absent for the vote: Creighton

Amendment 17 was summarized as clarifying that restrictions against insulting and inflammatory

remarks apply to all people speaking during meetings, including staff, commissioners, and the public.

The motion for adoption of Amendment 17 carried by the following vote:

In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5)

Amendment 7 was summarized as emphasizing the need for the commission president to make a

reasonable effort to consult with another commissioner prior to making public statements on behalf

of the commission. Commissioners commented on the need to be responsive to news media

during emergent situations. They also discussed the importance of not applying the amendment’s

provisions in a way that might compromise compliance with the Open Public Meetings Act (Chapter

42.30 RCW).

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The motion for adoption of Amendment 7 carried by the following vote:

In favor: Bowman, Creighton, Felleman, Gregoire (4)

Opposed: Albro (1)

Amendment 8 was summarized as tying the commission’s role of review and oversight of the

executive director and dual-reporting officers to the duties of specific commission officers or to the

commission as a whole. Commissioners were reminded that actions related to specific

performance recommendations would have to comply with rules governing executive sessions

under Chapter 42.30 RCW.

The motion for adoption of Amendment 8 carried by the following vote:

In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5)

Amendment 12 was described as an effort to clarify that individual commissioner comments are not

direction of the commission as a whole, particularly when commissioners offer opinions on staff

presentations where a quorum of the commission is not present.

The motion for adoption of Amendment 12 carried by the following vote:

In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5)

Amendment 15 was described as an attempt to make the process for determining committee and

outside board and commission assignments less prescriptive. Commissioner Bowman introduced a

substitute version of Amendment 15, which was distributed at the meeting and included a role for

the commission president to step in when there is not consensus among commissioners on a

particular appointment.

The motion for adoption of Substitute Amendment 15 carried by the following vote:

In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5)

Amendment 16 was summarized as a provision for all commissioners to serve on the Audit

Committee prior to completing their fourth year in office.

The motion for adoption of Amendment 16 carried by the following vote:

In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5)

The question recurred on the adoption of the resolution, as amended.

The motion for approval of Second Reading and Final Passage of Resolution No. 3742, as

amended, carried by the following vote:

In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5)

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Minutes of December 19, 2017, submitted for review on June 5, 2018, and proposed for approval on June 12, 2018.

6b. Motion of the Port of Seattle Commission to amend the Century Agenda small business

goals to include Women and Minority Business Enterprise.

Request document(s) included a draft motion. The adopted version of the full text of the motion is

attached as minutes Exhibit E. The text of the Century Agenda Strategies and Objectives, as

amended by this and other motions of December 19, is attached as minutes Exhibit D.

Presenter(s): Aaron Pritchard, Commission Issues and Policy Manager.

The text of the motion reads as follows:

The Port finds that minority and women businesses are under-represented and have

been under-utilized on Port contracts. The purpose of this motion is to amend the

Century Agenda to reflect new goals that will increase participation by minority and

women owned and controlled businesses in Port contracting for public works,

consulting services, supplies, material, equipment, and other services.

Century Agenda, Strategy 3 shall be amended as follows:

Insert “women and minority business enterprise growth” to read:

“Use the Port’s influence as an institution to promote women and minority business

enterprise growth, small business growth, and workforce development.”

Insert new objective 10:

10. Triple the number of WMBE firms that contract with the Port and increase to 15%

the percentage of dollars spent on WMBE contracts within five years, 2018 - 2023.

11. Increase the proportion of funds spent by the Port with qualified small business

firms on construction, consulting, goods and services to 40 percent of the eligible

dollars spent.

12. Increase workforce training, job and business opportunities for local communities

in maritime, trade, travel and logistics.

Renumber subsequent objectives as appropriate.

The motion for approval of agenda item 6b carried by the following vote:

In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5)

6c. Second Reading and Final Passage of Resolution No. 3737, a Resolution of the Port of

Seattle Commission to establish a Diversity in Contracting Policy Directive to increase

women and minority business opportunities and to repeal Resolutions No. 3506 and

No. 3618. [subsequently laid on the table]

Request document(s) included a Commission agenda memorandum and draft resolution. A copy of

the final draft of Resolution No. 3737 will be made available upon adoption.

Previously, the Commission approved First Reading of Resolution No. 3737 on December 5, 2017,

and considered a presentation on potential amendments to the resolution on December 12, 2017.

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Commissioners commented with appreciation on the work that has gone into crafting the policy

directive and expressed a desire to make additional refinements before adoption.

Without objection, further consideration of agenda item 6c was laid on the table.

6d. Motion of the Port of Seattle Commission to develop a Port of Seattle Sustainable

Aviation Fuels strategy.

No request documents were provided prior to the meeting, but a draft of the motion was presented

at the time of the meeting and the final text of the motion will be made available upon adoption.

Presenter(s): Veronica Valdez, Commission Specialist, and Stephanie Meyn, Senior Environmental

Program Manager, Aviation Environmental.

The provisions of the motion were summarized. Commissioners commented on the opportunity for

use of alternative aviation fuels to significantly reduce greenhouse gas emissions and particulate

matter concentrations. They noted the need to send a strong market signal and opined on the need

for state tax credits related to sustainable fuels and market implications for use of alternative fuels

in non-aviation sectors. Commissioners discussed whether the motion was premature in light of its

effect on airport lease negotiations (signatory lease and operating agreement, or SLOA) and

consideration of airport rates and charges.

The motion to lay the motion on the table failed to pass. The vote was:

In favor: Albro, Gregoire (2)

Opposed: Bowman, Creighton, Felleman (3)

The motion reads as follows:

The Port of Seattle is committed to implementing its long-standing goal of transitioning

from traditional jet fuel to sustainable aviation fuels (SAF) at Seattle-Tacoma

International Airport (Sea-Tac). Over the years, significant progress has been made to

establish the economic and logistical feasibility of this effort. Transitioning to SAF will

not only advance the Port’s Century Agenda Greenhouse Gas (GHG) Reduction Goals

but may also contribute to the reduction of aviation-related ultrafine particulate

emissions. In addition, these efforts have the potential to create new sources of

employment and economic opportunities throughout our region and state related to

production, transmission, and deployment of SAF.

To advance the Port’s well-established efforts to transition to SAF at Sea-Tac, the Port

of Seattle shall adopt the following goals:

 By 2028, 10 percent of jet fuel available at Sea-Tac will be produced locally from

sustainable sources.

 By 2035, 25 percent of jet fuel available at Sea-Tac will be produced locally from

sustainable sources.

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 By 2050, the maximum blend currently approved for jet fuel will be produced

locally from sustainable sources (e.g., 50 percent from sustainable sources is

the maximum blend currently approved for HEFA-based SAF).

These timelines may be adjusted with technological advances, regulatory changes, and

policy updates.

The SAF must meet the following principles: reduce lifecycle aviation-related

greenhouse gas emissions; be drop-in fuel so no infrastructure or aircraft engine

modifications are required; not take land out of food production; and reach price

competitiveness.

The following steps will enable the Port to achieve these goals:

 In 2018, the Port will reach an agreement with the major airline tenants at Sea-

Tac to establish a mutual commitment to advance the use of SAF that meets

International Air Transportation Association (IATA) and ASTM International fuel

standards and protocols to ensure safe and effective use.

 Create a market signal to facilitate the establishment of a domestic/local source

of SAF at a commercially competitive rate.

 Ensure a commitment from the airlines that they will use SAF preferentially to

meet goals established in the motion as long as there is a commercially

competitive supply.

 Drive initiatives to ensure cost competitiveness for SAF through a variety of

methods that are not mutually exclusive, including:

 Work with airlines to support state and federal legislation establishing a

cost-effective Low Carbon Fuel Standard (LCFS) consistent with bills,

executive orders, policies and regulations implemented in the States of

California and Oregon and the Province of British Columbia; or similar

provision that includes options for aviation tax credits as well as renewable

diesel for marine and on-road use.

 Work with airlines to advocate to the Federal Aviation Administration (FAA),

federal and state legislators, regulatory agencies, industry groups, and

other partners for use of airport revenues to offset costs of SAF through

their co-benefits.

 Work with airlines to advocate to the FAA for new grant programs, or to

adjust existing Voluntary Airport Low Emissions (VALE) grant programs to

support SAF through their co-benefits.

 Seek mutual financial investments with the Port and its partners.

 To help create the demand for renewable diesel, which can be an important

part of making the market demand for SAF, the Port shall work with the

following partners including, but not limited to: Washington State Ferries,

cruise lines, tug boat operators, other harbor craft, truck operators, fishing

boats, the United States Coast Guard, and the Department of Defense.

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AMENDMENT

Without objection, the motion’s statement of policy direction was amended to include reference to

community and stakeholder engagement.

The motion for approval of agenda item 6d, as amended, carried by the following vote:

In favor: Albro, Bowman, Creighton, Felleman, Gregoire (5)

7. STAFF BRIEFINGS – None.

8. ADDITIONAL NEW BUSINESS – None.

9. RECESSED AND ADJOURNED

The meeting was recessed at 4:32 p.m. to an executive session to discuss one matter relating to

performance of public employee(s). Following the executive session, which lasted approximately 45

minutes, the Commission adjourned at approximately 5:20 p.m. without returning to public session.

Prepared: Attest:

Paul J. White, Commission Clerk Ryan Calkins, Commission Secretary

Minutes approved: June 12, 2018.