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

APPROVED MINUTES

COMMISSION REGULAR MEETING JUNE 26, 2018

The Port of Seattle Commission met in a regular meeting Tuesday, June 26, 2018, in the

International Auditorium at Seattle-Tacoma International Airport, Seattle, Washington.

Commissioners Bowman, Calkins, Felleman, Gregoire, and Steinbrueck were present.

Commissioner Bowman was present after 12:53 p.m.

1. CALL to ORDER

Pursuant to Article IV, Section 8, of the Commission Bylaws, the meeting convened at 11:05 a.m.

to conduct an executive session.

2. EXECUTIVE SESSION pursuant to RCW 42.30.110

The notice posted during the executive session included two matters relating to legal risk and one

matter relating to performance of a public employee. 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 60 minutes, the public meeting

reconvened at 12:10 p.m. Commissioner Gregoire led the flag salute.

3. APPROVAL of the AGENDA

Without objection, the preliminary agenda was approved without revisions.

4. EXECUTIVE DIRECTOR’S REPORT

Executive Director Steve Metruck previewed items on the day’s agenda and made

announcements. Aviation Division Managing Director Lance Lyttle provided a report on record-

setting passenger growth and throughput at the airport. He acknowledged collaborative efforts of

the Transportation Security Administration (TSA). A weekly passenger checkpoint wait-time recap

is attached as minutes Exhibit A.

ANNOUNCEMENT

Commissioner Gregoire announced the retirement of Deputy General Counsel Isabel Safora. She

acknowledged Ms. Safora’s 28 years of service to the Port of Seattle, prior to which she served as

City of Seattle Assistant City Attorney. Ms. Safora’s public service included provision of civil legal

aid services in Seattle with Evergreen Legal Services, which later merged to form Columbia Legal

Services. Ms. Safora made brief comments of appreciation.

Commissioner Bowman was present after 12:53 p.m.

P.O. Box 1209

Seattle, Washington 98111

www.portseattle.org

206.787.3000

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5. PUBLIC COMMENT

Public comment was received from the following individual(s):

 Steve Wilhelm, Teacher, Northwest Dharma Association, regarding airport prayer and

meditation space.

 Paula Rose, Rabbi, Congregation Beth Shalom, Seattle, regarding airport prayer and

meditation space.

 Theresa Crecelius, American Muslim Empowerment Network, Muslim Association of

Puget Sound, regarding airport prayer and meditation space.

 David Lipper, Rabbi, Temple B’nai Torah, Bellevue, regarding airport prayer and

meditation space.

 Matin Rokhsefat, Ithna-Asheri Muslim Association of the Northwest (IMAN) Center of

Kirkland, regarding airport prayer and meditation space.

 Dana Hollaway, Quiet Skies Puget Sound, regarding airport noise and emissions.

 Cara Zemanek, Quiet Skies Puget Sound, regarding airport noise and emissions.

 Michelle Giarmarco, Salmon Bay Marina, regarding liveaboard policies.

 Roland L. March, Salmon Bay Marina, regarding liveaboard policies.

 Susie Schulmeyer, Salmon Bay Marina, regarding liveaboard policies. Ms. Schulmeyer

submitted written materials, which are attached as minutes Exhibit B.

 Jerry Effenberger, Salmon Bay Marina, regarding liveaboard policies. Mr. Effenberger

submitted written materials, which are attached as minutes Exhibit C.

 Mauri Shuler, Salmon Bay Marina, regarding liveaboard policies.

 Leon Mun, Salmon Bay Marina, regarding liveaboard policies.

 Kit Kollmeyer, Salmon Bay Marina, regarding liveaboard policies.

 Gene Rubbert, Salmon Bay Marina Tenants Association, regarding liveaboard policies.

 Noah Hanson, Seattle resident, regarding liveaboard policies at Salmon Bay Marina.

 Ralph B. Ibarra, President, Diverse America Network, regarding the Washington World

Fellows program. Mr. Ibarra submitted written materials, which are attached as minutes

Exhibit D.

 J.C. Harris, Des Moines resident, regarding airport impacts on surrounding communities.

 Debi Wagner, Burien resident, regarding airport impacts on surrounding communities.

Ms. Wagner submitted written materials, which are attached as minutes Exhibit E.

 In lieu of spoken testimony, written comment was submitted by Nancy B. Greer,

President & CEO, Jewish Federation of Greater Seattle, regarding airport prayer and

meditation space. These comments are attached as minutes Exhibit F.

 In lieu of spoken testimony, written comment was submitted by the Reverend Spencer

Barrett, Presiding Elder of the Pacific Northwest Conference, Fifth District, African

Methodist Episcopal Church, regarding airport prayer and meditation space. These

comments are attached as minutes Exhibit G.

Commissioners asked questions about the lease terms and tenant policies applicable to liveaboard

tenants at Salmon Bay Marina and commented on the need for better communication with the

liveaboard community. Executive Director Metruck indicated the deadline to execute liveaboard

moorage agreements would be extended from July 1 to August 1, 2018.

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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.]

6a. Approval of the minutes of the regular meeting of January 9 and special meetings of

January 30 and February 6, 2018.

6b. Authorization for the Executive Director to execute two professional services indefinite

delivery, indefinite quantity contracts to perform environmental site support services

with a total value of $5,000,000 and a contract ordering period of five years. No funding

is associated with this authorization.

Request document(s) included an agenda memorandum.

6c. Authorization for Executive Director to execute two contracts totaling $1,600,000 to

provide snow removal services for the Airport Operations Area at the Airport. The

contracts will be structured as one-year agreements with four one-year options.

Request document(s) included an agenda memorandum and attachment.

6d. Approval of the Commission’s 2018 international travel plan.

Request document(s) included an agenda memorandum and attachment.

6e. Authorization for the Executive Director to advertise and execute a contract for federal

government relations advocacy services for up to five years, a three-year base contract

with two one-year options for an estimated contract value of $1,500,000.

Request document(s) included an agenda memorandum.

6f. Authorization for the Executive Director to enter into a settlement agreement with Craig

Watson for his separation and early retirement from the Port of Seattle under the terms

outlined in a proposed settlement agreement for an amount not to exceed $500,000.

Request document(s) included an agenda memorandum.

The motion for approval of consent items 6a, 6b, 6c, 6d, 6e, and 6f carried by the following vote:

In favor: Calkins, Felleman, Gregoire, Steinbrueck (4)

Absent for the vote: Bowman

7. SPECIAL ORDERS of BUSINESS – None.

8. AUTHORIZATIONS and FINAL ACTIONS

8a. Authorization for the Executive Director to: (1) increase the scope of work for the South

Satellite Infrastructure Upgrades project following an irregular bid on February 7, 2018;

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and (2) proceed with design updates and modifications at a cost of $800,000, which is

within the funding limits of prior authorizations. There is no funding associated with

this request (CIP #C800798).

Request document(s) included a corrected agenda memorandum and presentation slides.

Presenter(s): John Freeman, Capital Project Manager, Aviation Project Management Group.

Commissioners commented on the operational urgency of the work to be performed and the

benefits to customer service. They asked about opportunities for related project work and

commented on reviewing adequacy of insulation in the South Satellite.

The motion for approval of agenda item 8a carried by the following vote:

In favor: Bowman, Calkins, Felleman, Gregoire, Steinbrueck (5)

8b. Authorization for the Executive Director to proceed with program development,

advance planning, and project definition for an expansion of the C1 Building at Seattle-

Tacoma International Airport for an amount not to exceed $500,000 (CIP #C800845).

Request document(s) included an agenda memorandum and presentation slides; brief video is also

available.

Presenter(s): Keri Stephens, Aviation Capital Project Liaison, Capital Development Program

Management; James Jennings, Senior Manager, Aviation Properties; and Borgan Anders, Director,

Aviation Finance and Budget.

Commissioners asked about the relationship of the C-1 building to the sustainable airport master

plan (SAMP). It was reported that the C-1 building is not included in SAMP and does not affect

overall SAMP efforts, although it is a documented capital improvement project that will be reported

on regularly while under construction. Commissioners asked for clarification about what is included

in the SAMP for their own benefit as well as public understanding. Commissioners asked how the

proposed expansion would affect passenger seating on the C Concourse. They asked about

potential risks, including possible need to upgrade to current code requirements.

The motion for approval of agenda item 8b carried by the following vote:

In favor: Bowman, Calkins, Felleman, Gregoire, Steinbrueck (5)

8c. Authorization for the Executive Director to execute a contract for janitorial services at

Pier 69 with Northwest Center for an estimated value of $1,200,000 over a five-year period.

Request document(s) included an agenda memorandum.

Presenter(s): Nick Milos, Manager, Corporate Facilities.

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The motion for approval of agenda item 8c carried by the following vote:

In favor: Bowman, Calkins, Felleman, Gregoire, Steinbrueck (5)

9. PRESENTATIONS, REPORTS, and STAFF BRIEFINGS

9a. Aviation 2019 Business Plan and Budget Development.

Presentation document(s) included an agenda memorandum and presentation slides.

Presenter(s): Lance Lyttle, Aviation Managing Director, and Borgan Anderson, Director, Aviation

Finance and Budget.

Commissioners received a presentation describing the budget-development process in the Aviation

Division and Aviation key priorities for 2019. The division’s goal of creating a world-class airport,

which includes attention to aesthetics and efficient throughput of passengers, was emphasized.

Industry context, operational challenges, and projected passenger growth based on regional

demand were addressed.

Commissioners commented on factoring-in unexpected growth in budget planning and asked about

growth trends prior to 2012. They noted budget resiliency as a hedge against economic downturn.

Commissioners asked about the status of the airport signage master plan. They asked for

clarification on proposed employee engagement initiatives. Commissioners asked about the status

of the Ground Transportation Access Plan

Commissioners asked whether parking objectives were in conflict with port environmental goals.

They questioned plans to encourage non-passenger retail at the airport. They commented on

changing trends in the parking market and on possibilities related to an airport hotel. Proposing

alternatives for broad application of ground transportation access fees was mentioned.

Commissioners noted the opportunity to use vehicle access fees to apply equitable treatment for all

vehicles using port facilities, which creates environmental and congestion impacts.

Aeronautical and non-aeronautical revenue forecasts were presented. Cost per enplanement is

expected to grow from $11.63 to approximately $13.90 as a result of new airport infrastructure

going into use and adding to calculation of the rate base. Expected revenue growth in 2019 was

characterized as modest. In response to commissioner inquiries, it was reported that actual

revenues for 2018 are trending very close to forecast. The Aviation 2019 budget request will likely

include 45 additional full-time-equivalent staff positions, some of which are needed for employee

security screening.

9b. Customer Experience and Business Intelligence at the Airport.

Presentation document(s) included an agenda memorandum and presentation slides.

Presenter(s): Michael Drollinger, Director, Business Intelligence.

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Mr. Drollinger defined business intelligence as the organizational capacity to get insight from data.

He described the difference between having business-process data and understanding its

relevance to the organization. The work of the business intelligence department bridges

information technology and port lines of business to analyze existing data and obtain new data as

needed to serve the port’s goals and objectives.

Goals of the department include promoting broad availability of data, reducing wasted effort in all

data-related activities, improving organizational knowledge, enabling focus and clarity to support

strategic planning, and stimulating a culture of learning, sharing, and valuing information. He

presented examples of successful business intelligence efforts providing comprehensible data

related to customer experience at Seattle-Tacoma International Airport.

Commissioners commented on the benefits of public accessibility to port data. They remarked on

the components of a useful dashboard system for interpreting data, including compatibility with

mobile applications. Commissioners noted the importance of verifying that the port is collecting

relevant data and communicating it well. The value of measuring leading indicators versus lagging

indicators was discussed.

ANNOUNCEMENTS

Commissioners welcomed graduate intern Carter Osborne to the Office of the Commission.

Regarding commission international travel (see agenda item 6d), Commissioner Gregoire

recommended that the overall cost for such travel be reduced in 2019 and opined that the

transparency intended by Resolution No. 3604 should include visibility into the cost of travel, not

just locations intended for international trips.

10. QUESTIONS on REFERRAL to COMMITTEE – None.

11. ADJOURNMENT

There was no further business, and the meeting adjourned at 3:30 p.m.

Prepared: Attest:

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

Minutes approved: September 11, 2018.