Digital recordings of the meeting proceedings and meeting materials are available online – www.portseattle.org.
APPROVED MINUTES
COMMISSION REGULAR MEETING OCTOBER 8, 2019
The Port of Seattle Commission met in a regular meeting Tuesday, October 8, 2019, in commission
chambers at Port of Seattle offices, 2711 Alaskan Way, Seattle, Washington. Commissioners Bowman,
Calkins, Felleman, Gregoire, and Steinbrueck were present.
1. CALL to ORDER
The meeting was called to order at 12:10 p.m. by Commission Vice President Fred Felleman, who
led the flag salute.
2. EXECUTIVE SESSION pursuant to RCW 42.30.110 – None.
3. APPROVAL of the AGENDA
Without objection, the preliminary agenda was revised to add agenda item 9c, a presentation on the
Maritime and Economic Development Divisions 2020 Capital Budgets, and to consider the staff
briefings in the following order: 9c, 9b, and 9a.
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):
• Jan von Lehe, 350 Seattle, regarding expansion of the port’s cruise line of business.
• Stacy Oaks, 350 Seattle, regarding requirements for the port’s request for proposals for
the new cruise facility at Terminal 46. Ms. Oaks submitted written materials, which are
attached as minutes Exhibit A.
• Carlo Gnecchi, Interbay tiny house village resident, in support of the port’s renewal of the
lease of the Tsubota property for temporary housing.
• Kamika Jones, Interbay tiny house village resident, in support of the port’s renewal of the
lease of the Tsubota property for temporary housing.
• Kyle Monzingo, Interbay tiny house village site coordinator, in support of the port’s renewal
of the lease of the Tsubota property for temporary housing.
• Janis Traven, Seattle resident, in support of the port’s renewal of the lease of the Tsubota
property for temporary housing.
• Joseph Procella, Seattle resident and past Interbay tiny house village resident, in support
of the port’s renewal of the lease of the Tsubota property for temporary housing.
P.O. Box 1209
Seattle, Washington 98111
www.portseattle.org
206.787.3000
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Minutes of October 8, 2019, submitted for review on November 6, 2019, and proposed for approval on November 12,2019.
• Aaron Monts, Pastor of Queen Anne United Church, provide service to village, in support
of the port’s renewal of the lease of the Tsubota property for temporary housing. Mr. Monts
submitted written materials, which are attached as minutes Exhibit B.
• Alex Tsimerman, Seattle resident, regarding political corruption.
• Dani Amory, Interbay tiny house village resident, in support of the port’s renewal of the
lease of the Tsubota property for temporary housing.
• In lieu of spoken comment, Josh Castle, Seattle resident, submitted written materials
regarding Interbay Village, which are attached as minutes Exhibit C.
• In lieu of spoken comment, Melissa Rankin and the Reverend Marci Scott-Weis, Magnolia
Church of Christ, submitted written materials regarding Interbay Village, which are
attached as minutes Exhibit D.
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 August 13, 2019.
6b. Approval of the Claims and Obligations for the period September 1, 2019, through
September 30, 2019, including accounts payable check nos 931646-932175 in the amount
of $5,853,652.18; accounts payable ACH nos. 020175-020842 in the amount of
$69,415,025.71; accounts payable wire transfer nos. 015199-015217 in the amount of
$5,730,932.44, payroll check nos. 194263-194512 in the amount of $265,268.93; and
payroll ACH nos. 929895-934210 in the amount of $11,096,629.74 for a fund total of
$92,631,509.00.
Request document(s) included an agenda memorandum.
6c. Authorization for the Executive Director to (1) accept a Federal Emergency Management
Agency Port Security Grant Program award in the amount of $659,843 for the
procurement of one Port of Seattle police boat; (2) execute a contract to buy a police
boat; and (3) authorize the Port of Seattle share of the project in the amount of $240,157,
which includes a 25-percent cost match mandated by the FEMA grant program, for a total
procurement cost of $900,000.
Request document(s) included an agenda memorandum.
6d. Authorization for the Executive Director to execute a new one-year contract with four
additional one-year options to extend for Pier 66 janitorial services, with a value up to
$575,000.
Request document(s) included an agenda memorandum.
6e. Authorization for the Executive Director to execute a new collective bargaining
agreement between the Port of Seattle and the International Brotherhood of Teamsters,
Local 763, Teamsters, Police Commanders, representing the Police Department for the
Port of Seattle covering the period from January 1, 2019, through December 31, 2021.
Request document(s) included an agenda memorandum and bargaining agreement redline.
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Minutes of October 8, 2019, submitted for review on November 6, 2019, and proposed for approval on November 12,2019.
6f. Authorization for the Executive Director to execute a new collective bargaining
agreement between the International Union of Operating Engineers Local 302,
representing the Operating Engineers in our Aviation Maintenance Department, covering
the period from June 1, 2018, through May 31, 2023.
Request document(s) included an agenda memorandum and bargaining agreement redline.
The motion for approval of consent items 6a, 6b, 6c, 6d, 6e, and 6f carried by the following vote:
In favor: Bowman, Calkins, Felleman, Gregoire, Steinbrueck (5)
7. SPECIAL ORDERS of BUSINESS
7a. Authorization for the Executive Director to renew the lease agreement for one year with
the City of Seattle for continued use of the Tsubota site (1601 15th Avenue West, Seattle)
for a temporary homeless encampment.
Request document(s) included an agenda memorandum, presentation slides, and draft lease.
Presenter(s): Veronica Valdez, Commission Specialist; Meg Olberding, Director of External Affairs,
Human Services Department, City of Seattle; and Sharon Lee, Executive Director, Low Income
Housing Institute.
On November 16, 2019, the port’s existing lease with the City of Seattle for use of the Tsubota site
on 15
th
Avenue West for a temporary homeless encampment will expire. Renewal is proposed for
one year. The model for providing shelter and services to homeless at the site was summarized and
measurable outcomes for transition of residents to permanent housing was reported at 37 percent,
an increase since 2017’s 22-percent transition rate. There are currently 42 tiny houses at the site
with electricity, heat, and access to plumbed toilets, showers, and laundry and community kitchen
facilities. Garbage collection and utilities are underwritten by the city. Residents may keep their pets
and the number of residents with disabilities has increased. An early State Environmental Policy Act
challenge was resolved, paving the way for installation of plumbed toilet and shower facilities, and
there is no current pending litigation.
Commissioners acknowledged that facilitating housing and homelessness solutions are not part of
the port’s typical suite of community endeavors while noting the negative effect of the homelessness
crisis on tourism, trade, and economic development in the region. Although the port provides the
land for the encampment, it does not underwrite the services provided there. There were comments
about potentially extending future leases for a longer term. Contrasts were noted between the current
tiny-house village model with basic amenities and access to services to transition to permanent
housing and Seattle’s Hoovervilles of the 1930s.
The motion for approval of agenda item 7a carried by the following vote:
In favor: Bowman, Calkins, Felleman, Gregoire, Steinbrueck (5)
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Minutes of October 8, 2019, submitted for review on November 6, 2019, and proposed for approval on November 12,2019.
8. AUTHORIZATIONS and FINAL ACTIONS
8a. Introduction and public hearing for Resolution No. 3762: A Resolution of the Port of
Seattle Commission declaring surplus and no longer needed for port district purposes
approximately 417,963 square feet (9.6 acres) of Port-owned real property located in the
City of SeaTac, King County; and further authorizing the Executive Director, or his
designee, to finalize negotiation and prepare and execute all necessary documents to
transfer said real property to WSDOT for use in the extension of SR-509 in connection
with WSDOT’s SeaTac to I-5 Freeway Extension/SR-509 Corridor Completion Program
Phase I Project.
Request document(s) included an agenda memorandum, presentation slides, and draft resolution.
A copy of the final draft of Resolution No. 3762 will be made available upon adoption.
Presenter(s): Allan Royal, Aviation Property Manager.
PUBLIC HEARING on Resolution No. 3762
Upon a motion and second for introduction of Resolution No. 3762, Commissioner Bowman declared
the public hearing for the resolution open.
The commission received a presentation on the resolution that included appraisal details, a report of
Federal Aviation Administration approval, and a recapitulation of the memorandum of agreement
executed between the port and the Washington State Department of Transportation in support of
extension of SR-509.
Commissioners asked about the effect of the transfer on reducing traffic congestion in SeaTac and
the extent of the acreage to be taken by the state.
An opportunity for public testimony was provided, but none was offered at this time and the hearing
was closed.
The motion for approval of introduction of Resolution No. 3762 carried by the following vote:
In favor: Bowman, Calkins, Felleman, Gregoire, Steinbrueck (5)
8b. Authorization for the Executive Director to (1) prepare design and construction bid
documents for the Terminal Solid Waste Improvements project at Seattle-Tacoma
International Airport; (2) execute a long-term contract for standardized solid waste
compactors through a competitive process for a period of up to 10 years; and (3) use
Port crews for preconstruction activities. The amount of this request is $1,225,000 for a
total estimated project cost not to exceed $6,400,000 (CIP #C800945).
Request document(s) included an agenda memorandum and presentation slides.
Presenter(s): Michael Dysart, Capital Project Manager, and Tom Beirne, Aviation Facilities and
Infrastructure, Utility Program Manager.
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Minutes of October 8, 2019, submitted for review on November 6, 2019, and proposed for approval on November 12,2019.
The effect of passenger growth and new initiatives on the airport’s waste diversion program was
described. Additional space for waste collection is needed and investment in capacity for
compostable waste is considered critical to meeting waste diversion goals.
Commissioners asked about the breadth of the program, which includes passenger-related and
dining-and-retail-related waste. They inquired about disposal fees for tenants and effects of rising
recycling costs. It was reported that using waste to generate energy is a factor that will be considered
in developing a solid waste master plan. Commissioners asked about efforts to prohibit sale of plastic
water bottles and other single-use plastics at other airports. Airline and flight kitchen waste is handled
separately from general airport waste management.
The design cost estimate for the proposed solution was summarized.
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 set 2020 Marine Stormwater Utility rates with
an increase of 8.2 percent.
Request document(s) included an agenda memorandum and presentation slides.
Presenter(s): Sandra Kilroy, Director, Maritime Environment and Sustainability, and Srinivas
Pendikatla, Program Manager, Marine Stormwater Utility.
Commissioners received a presentation covering the formation of the port’s stormwater utility, the
status of the system’s condition assessment, and the proposed utility rate increase of 8.2 percent. It
was noted that improvements and repairs of the utility directly benefit port tenants and facilities, which
was a reason for forming the utility in 2014. It was also explained that increased utility fees will remain
lower than comparable fees of the City of Seattle. Commissioners asked whether a larger increase
was considered. It was noted that additional system improvements also require workload capacity
on the part of the utility. There was a discussion of how the system manages stormwater capacity
fluctuations and comparisons to source-control measures of other ports.
The motion for approval of agenda item 8c carried by the following vote:
In favor: Bowman, Calkins, Felleman, Gregoire, Steinbrueck (5)
8d. Authorization for the Executive Director to increase funding for the Interim Westside Fire
Station Design-Build Contract by $3,679,000 for a new total project cost of $9,179,000
(CIP #C800876). [subsequently amended]
Request document(s) included an agenda memorandum and presentation slides.
Presenter(s): Sean Anderson, Capital Program Leader, and Randy Krause, Fire Chief.
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Minutes of October 8, 2019, submitted for review on November 6, 2019, and proposed for approval on November 12,2019.
Previously, this project was the subject of authorizations on February 27, 2018 (agenda item 8b) and
May 28, 2019 (agenda item 8d). It was the subject of an audit report on September 28, 2018, and
was reported by the Audit Committee at a port commission meeting on October 9, 2018 (agenda
item 10).
The presentation included information about numerous changes to the project, including scope
changes that have added cost and delayed project completion. The facility as currently proposed will
be separate from the Paccar building and will be slightly larger. It is still considered an interim solution
but may be useful slightly longer than originally expected due to timing refinements to future airfield
projects that might compete for use of the same space. It is estimated the facility will be used for at
least three years.
Commissioners asked about the current lease arrangement with Paccar and emphasized the need
for improved comfort and safety of firefighters. Commissioners asked about the process by which
the cost increased from the original estimate of $2.4 million to the current estimate of approximately
$9.2 million. They asked about investment in design and a detailed cost breakdown. In-house
procurement and underestimation of Federal Aviation Administration regulations related to the use
of the airfield location and erection of modular units were discussed. Commissioners asked about
use of women- and minority-owned business enterprises and the schedule for project delivery. The
description in the agenda memorandum of the project changes and the memo’s failure to address
the systemic challenges in the delivery of the project were criticized by commissioners.
AMENDMENT
The action requested was amended without objection to read as follows:
Authorization for the Executive Director to increase funding for the Interim Westside Fire
Station Design-Build Contract by $3,679,000 for a new total project cost of $9,179,000 with a
lessons-learned and after-action report by management due to the Commission by
October 31, 2019 (CIP #C800876). [as amended]
[Clerk’s Note: the after-action report prepared by management and dated October 31, 2019, is
attached as minutes Exhibit E.]
The motion for approval of agenda item 8d, as amended, carried by the following vote:
In favor: Bowman, Calkins, Felleman, Gregoire, Steinbrueck (5)
RECESSED and RECONVENED
The meeting was recessed at 2:44 p.m. and reconvened at 2:52 p.m., chaired by Commissioner
Bowman.
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Minutes of October 8, 2019, submitted for review on November 6, 2019, and proposed for approval on November 12,2019.
9. PRESENTATIONS, REPORTS, and STAFF BRIEFINGS
Without objection, agenda item 9c, a briefing on the 2020 Maritime and Economic Development
Divisions preliminary budgets, and agenda item 9a, recommendations on financial policy updates,
were laid on the table. These briefings were considered instead on October 22, 2019.
As noted above, the commission advanced to consideration of –
9b. 2020 Maritime and Economic Development Divisions Preliminary Capital Budget
Briefing.
Presentation document(s) included an agenda memorandum, Maritime Division presentation slides,
and Economic Development Division presentation slides.
Presenter(s): Stephanie Jones Stebbins, Managing Director, Maritime; Dave McFadden, Managing
Director, Economic Development; Kelly Zupan, Director, Seaport Finance and Budget; and Mian
Rice, Director of Diversity in Contracting.
Maritime Division
The priorities and budget approach for the Maritime Division for 2020 were summarized, including
revenue and expense projections. Growth in cruise business has helped to balance poorer
performance in grain exports and some fishing industry revenue. Transfers of full-time-equivalent
positions and other expenses were noted.
Commissioners asked about effects on port facilities of fishing and cruise vessel size trends. They
inquired about budget for improvements at Terminal 46 and employment numbers associated with
cruise expansion there. Commissioners asked if tariff rates are set at the right level and whether
variable cost based on demand was under consideration. They commented on being able to describe
the public benefit achieved by added staff positions. The port’s stormwater utility budget was
presented as part of the Maritime Division.
Economic Development Division
The priorities and budget approach for the Economic Development Division for 2020 were
summarized, including revenue and expense projections. Conference center revenue is down,
affecting the division’s capital development priorities. Several port properties are poised for
redevelopment. Commissioners asked about capacity for real estate portfolio acquisitions and sales
in the event of economic downturn.
Expense trimming in the 2020 budget includes removal of funding for shuttle service to Pier 69 and
removal of economic development and trade development memberships. Resources for diversity-in-
contracting efforts were transferred from construction incubator, small business training, and women-
and minority-owned business enterprise program implementation to new mentor-protégé efforts.
Resources for workforce development initiatives are moving to the Office of Equity, Diversity, and
Inclusion. Some funding for promotional hosting and sponsorships will be transferred to maritime
innovation initiatives.
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Commissioners asked about how specific programs help achieve the division’s strategic goals. They
inquired about state funding for tourism efforts and the status of “cruise-and-stay” efforts.
The transition of workforce development responsibilities to the Office of Equity, Diversity, and
Inclusion was discussed.
10. QUESTIONS on REFERRAL to COMMITTEE – None.
11. ADJOURNMENT
There was no further business, and the meeting adjourned at 4:38 p.m.
Prepared: Attest:
Paul J. White, Commission Clerk Peter Steinbrueck, Commission Secretary
Minutes approved: November 12, 2019.
