Digital recordings of the meeting proceedings and meeting materials are available online – www.portseattle.org.
APPROVED MINUTES
COMMISSION REGULAR MEETING MARCH 27, 2018
The Port of Seattle Commission met in a regular meeting Tuesday, March 27, 2018, in the
International Auditorium at Seattle-Tacoma International Airport, Seattle, Washington.
Commissioners Bowman, Calkins, Felleman, Gregoire, and Steinbrueck were present.
1. CALL to ORDER
Pursuant to Article IV, Section 8, of the Commission Bylaws, the meeting convened at 11:10 a.m.
to conduct an executive session.
2. EXECUTIVE SESSION pursuant to RCW 42.30.110
The notice posted during the executive session included one matter related to legal risk and one
matter related to legal risk and performance of a publicly bid contract. The time for reconvening
was posted as 12:00 noon, in accordance with commission bylaws and the public meeting notice
previously published. Following the executive session, which lasted approximately 75 minutes, the
public meeting reconvened at 12:28 p.m. Commissioner Gregoire led the flag salute.
3. APPROVAL of the AGENDA
Without objection, the preliminary agenda was revised to remove item 6g from the Unanimous
Consent Calendar for separate discussion and vote and to lay on the table items 6d and 8c.
4. EXECUTIVE DIRECTOR’S REPORT
Executive Director Steve Metruck previewed items on the day’s agenda and made
announcements.
5. PUBLIC COMMENT
Public comment was received from the following individual(s):
Steve Edmiston, Des Moines, regarding impacts on airport communities. Mr. Edmiston
submitted written materials, which are attached as minutes Exhibit A.
Debi Wagner, Burien, regarding impacts on airport communities. Ms. Wagner submitted
written materials, which are attached as minutes Exhibit B.
Alli Larkin, Des Moines, regarding impacts on airport communities. Ms. Larkin submitted
written materials, which are attached as minutes Exhibit C.
Kathleen G. Tansey, Kent, regarding signage at Pier 91. Ms. Tansey submitted written
materials, which are attached as minutes Exhibit D.
P.O. Box 1209
Seattle, Washington 98111
www.portseattle.org
206.787.3000
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Minutes of March 27, 2018, submitted for review on July 17, 2018, and proposed for approval on July 24, 2018.
Ralph B. Ibarra, President of Diverse America Network and representing Sundancer
Electric, regarding payment of subcontractors and suppliers working on the airport’s
International Arrivals Facility. Mr. Ibarra submitted written materials, which are attached
as minutes Exhibit E.
6. UNANIMOUS CONSENT CALENDAR
[Clerk’s Note: Items on the Unanimous Consent Calendar are not individually discussed.
Commissioners may remove items for separate discussion and vote when approving the agenda.]
Agenda item 6a was removed from the agenda prior to publication.
6b. Authorization for the Executive Director to execute a new collective bargaining
agreement between the Port of Seattle and the International Brotherhood of Electrical
Workers, Local 46, representing 72 electricians assigned to the Port of Seattle Aviation
Maintenance and Maritime Maintenance divisions, covering the period from June 1,
2017, through May 31, 2019.
Request document(s) included an agenda memorandum and agreement.
6c. Authorization for the Executive Director to execute a new collective bargaining
agreement between the Port of Seattle and the International Brotherhood of Electrical
Workers, Local 46, representing seven utility workers assigned to the Port of Seattle
Aviation Maintenance and Maritime Maintenance divisions, covering the period from
June 1, 2017, through May 31, 2020.
Request document(s) included an agenda memorandum and agreement.
As noted above, agenda item 6d was laid on the table.
6e. Authorization for the Executive Director to execute up to five professional services
indefinite delivery, indefinite quantity contracts for mechanical and electrical design
services for a total maximum value of $10,000,000. There is no funding request
associated with this authorization.
Request document(s) included an agenda memorandum.
6f. Authorization for the Executive Director to add scope and increase the Concourse B
Ramp Level Holdroom project budget by $436,000 in order to complete and upgrade
the Concourse B ramp level holdroom at Seattle-Tacoma International Airport. The new
authorized total project cost will be $5,994,000 (CIP #C800761).
Request document(s) included an agenda memorandum.
As noted above, agenda item 6g was temporarily postponed.
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Minutes of March 27, 2018, submitted for review on July 17, 2018, and proposed for approval on July 24, 2018.
The motion for approval of consent items 6b, 6c, 6e, and 6f carried by the following vote:
In favor: Bowman, Calkins, Felleman, Gregoire, Steinbrueck (5)
7. SPECIAL ORDERS of BUSINESS
7a. City of Seattle Waterfront Seattle Local Improvement District Proposal.
Presentation document(s) included an agenda memorandum and presentation slides.
Presenter(s): Geraldine Poor, Regional Transportation Manager; Marshall Foster, City of Seattle
Office of the Waterfront and Civic Arena; and Joshua Curtis, City of Seattle Office of the Waterfront
and Civic Arena.
In anticipation of completion of the opening of the SR-99 tunnel and subsequent removal of the
Alaskan Way Viaduct and related waterfront improvements, the commission received a
presentation on next steps and redevelopment funding. A local improvement district is estimated to
contribute $200 million to waterfront redevelopment. The area identified as deriving special benefit
from waterfront development and potentially subject to assessment under the local improvement
district runs south of Wall Street and Denny Way, from Interstate 5 west to the waterfront as far
south as Jackson Street and Yesler Way, and includes Pioneer Square and the Stadium District at
its southern end. The area would include some Port of Seattle facilities, such as the Bell Harbor
Conference Center, World Trade Center, and related garages.
Commissioners asked about overall port investment in transportation-related projects and in the
SR-99 project in particular. Commissioners commented on the port’s separate investment in
stormwater facilities through its marine stormwater utility. They asked about the effect on the local
improvement district should philanthropic funding sources prove higher than estimated.
Commissioners opined on the port’s representation when it comes to decisions affecting the
waterfront.
Commissioners inquired about the management structures involved in the public/private
partnerships for waterfront redevelopment and questioned the boundaries of the area considered
to derive “special benefit” from redevelopment that therefore would be included in the local
improvement district.They asked whether representation on the oversight committee would be
proportional to the size of assessment in the district. It was confirmed that public entities would be
included in the local improvement district assessment as provided by state law. The process for
establishing the local improvement district was summarized, including assessment protest
opportunities and appeals. It was confirmed that the First Avenue Street Car cannot legally benefit
from the assessment.
7b. Authorization for the Executive Director to enter into a memorandum of agreement with
King County to become an official member of the King County-Cities Climate
Collaboration.
Request document(s) included an agenda memorandum, memorandum of agreement, and
presentation slides.
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Minutes of March 27, 2018, submitted for review on July 17, 2018, and proposed for approval on July 24, 2018.
Presenter(s): Elizabeth Leavitt, Senior Director, Environment and Sustainability; Lindsay Wolpa,
Regional Government Relations Manager; Rachel Brombaugh, Energy Policy and Partnerships
Specialist, King County.
The objectives and composition of the coalition, which includes King County and 13 cities, were
summarized. The port and the coalition share similar carbon emission reduction goals.
Commissioners asked how measurement and progress on carbon emission reduction would be
performed. The structure of the coalition was discussed. Commissioners expressed interest in
focusing on local carbon reduction efforts and commented on the opportunity to share the work of
the port’s Energy and Sustainability Committee with coalition participants. Commissioners
commented on the low percentage of transit use among airport users and the hope that Sound
Transit would also act to join the coalition.
The motion for approval of agenda item 7b carried by the following vote:
In favor: Bowman, Calkins, Felleman, Gregoire, Steinbrueck (5)
The Commission advanced to consideration of –
ITEMS REMOVED from CONSENT
6g. Authorization for the Executive Director to establish an Energy Services Company
registry, a list of pre-approved energy services contractors the port can use for future
energy services performance contracting.
Request document(s) included an abbreviated agenda memorandum.
Presenter(s): Terrance Darby, Senior Environmental Management Specialist, and Nora Huey,
Director, Central Procurement.
Commissioners asked for clarification of the purpose of the energy services company registry. It
was reported that the registry will streamline energy efficiency projects. Energy audits and options
for metering capabilities were described.
The motion for approval of agenda item 6g carried by the following vote:
In favor: Bowman, Calkins, Felleman, Gregoire, Steinbrueck (5)
8. AUTHORIZATIONS and FINAL ACTIONS
8a. Authorization for the Executive Director to sign an EPA Administrative Settlement
Agreement and Order on Consent requiring the Port of Seattle to perform a Preliminary
Assessment and Site Investigation at Terminal 108. Funding for this work was included
in the 2018-2022 annual Environmental Remediation Liability Program authorization.
Request document(s) included an agenda memorandum and administrative settlement agreement.
Presenter(s): Kathy Bahnick, Senior Manager, Remediation Programs, and Roy Kuroiwa, Senior
Environmental Program Manager.
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Minutes of March 27, 2018, submitted for review on July 17, 2018, and proposed for approval on July 24, 2018.
The Terminal 108 environmental remediation site and the scope of work under the administrative
settlement agreement were described. Commissioners asked about the history of ownership and
contamination of the site.
The motion for approval of agenda item 8a carried by the following vote:
In favor: Calkins, Felleman, Gregoire, Steinbrueck (4)
Absent for the vote: Bowman
8b. Motion 2018-04: A motion of the Port of Seattle Commission adopting the charter of an
Energy and Sustainability Special Committee, as attached.
Request document(s) included a proposed motion and proposed charter. Copies of the final draft of
Motion 2018-04 and the adopted committee charter are attached.
Presenter(s): Aaron Pritchard, Commission Issues and Policy Manager and Elizabeth Leavitt,
Senior Director, Environment and Sustainability.
It was explained that the Energy and Sustainability Committee constituted January 26, 2016, had
fulfilled its scope of work with the December 19, 2017, proposal that included development of a
sustainability evaluation framework and updating Century Agenda emission reduction goals. The
scope of work for the new committee will include implementation and oversight of many of the
previous committee’s recommendations. These include development of the framework and review
of related pilot projects, recommendation and implementation oversight of a sustainable aviation
fuel strategy, development of a blue carbon strategy related to sequestration of carbon dioxide in
coastal ecosystems, and a recommendation to update the port’s environmental awards program.
Commissioners commented on the attainability of sustainable aviation fuels development and the
importance of ground transportation emissions as a component of airport emissions.
The text of the motion reads as follows:
The Port of Seattle Commission hereby adopts the attached charter of the 2018
Energy and Sustainability Special Committee to develop policy recommendations
and provide oversight of the Century Agenda’s environmental and sustainability
goals including “be the greenest and most energy-efficient Port in North America”
and “meet all increased energy needs through conservation and renewable
sources”; implementation of the Commission’s motion of October 24, 2017; and of
the items described in the attached charter.
The motion for adoption of Motion 2018-04 (agenda item 8b) carried by the following vote:
In favor: Bowman, Calkins, Felleman, Gregoire, Steinbrueck (5)
As noted above, agenda item 8c was laid on the table.
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Minutes of March 27, 2018, submitted for review on July 17, 2018, and proposed for approval on July 24, 2018.
9. PRESENTATIONS, REPORTS, and STAFF BRIEFINGS
9a. International Arrivals Facility Program Update (CIP #C800583).
Presentation document(s) included an agenda memorandum and presentation slides.
Presenter(s): Ralph Graves, Senior Director, Capital Development; David Brush, International
Arrivals Facility Program Leader; and Loren Armstrong, Senior Port Counsel.
Commissioners received an update on the status of the airport’s International Arrivals Facility (IAF),
including budget overruns, schedule delays, and delay in negotiating the progressive-design-build
project’s guaranteed maximum price (GMP).
Commissioners expressed concerns over project growth and uncertainty and the content and
frequency of updates. They requested clarification about project elements and contractual terms.
Commissioners noted that other progressive-design-build projects to which the IAF has been
compared had obtained a GMP near 60-percent design, whereas the IAF is at 90 percent design
without an agreed GMP. They commented on scope and budget increases being authorized during
the past two years without commission awareness of the contractor’s poor performance.
Staff described the contractor’s GMP proposal at 60 percent design, representing more than $100
million more than the project’s late-2015 validated cost plus $80 million of subsequent added
scope. They reported the decision made in July 2017 to postpone GMP negotiation until the 90-
percent-design point to obtain better GMP documentation and reconcile the additional cost.
Commissioners asked for justification for not being alerted sooner to the seriousness of contractor
performance issues, including incomplete documentation to substantiate costs. Commissioners
remarked on the need for direct involvement by the executive director, a deadline to supply
adequate documentation, an audit of the IAF program, and a written response from the contractor.
10. QUESTIONS on REFERRAL to COMMITTEE – None.
11. ADJOURNMENT
There was no further business, and the meeting adjourned at 4:25 p.m.
Prepared: Attest:
Paul J. White, Commission Clerk Courtney Gregoire, Commission President
Minutes approved: July 24, 2018.
