Saint Lawrence Seaway Development Corporation

Advisory Board Meeting Minutes

Monday, June 26, 2017 (2:00 p.m.) 

Meeting Held Via Teleconference

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PRESENT Craig Middlebrook (Deputy Administrator), David McMillan (Advisory Board 

Chairperson), William Mielke (Advisory Board Member), Arthur Sulzer 

(Advisory Board Member), Nancy Alcalde (Director of Congressional and Public 

Relations), Chris Guimond (Director of Lock Operations and Marine Services), 

Carrie Lavigne (Chief Counsel), Tom Lavigne (Associate Administrator), Kevin 

O’Malley (Director of Budget and Economic Development), Jeff Scharf (Director 

of Engineering and Maintenance), Adam Schlicht (Great Lakes Regional 

Representative), Nancy Scott (Chief Financial Officer), and Wayne Williams 

(Chief of Staff) were present. Advisory Board Member Wenona Singel was 

absent from the meeting. Chelsea Champlin (Program Support Specialist) was

also in attendance. Mr. McMillan chaired the meeting and Ms. Champlin recorded 

the minutes.

I. CALL TO ORDER

In his capacity as Board Chairperson, David McMillan welcomed all participants to the Advisory 

Board meeting and, noting the presence of quorum with three of four board members present,

called the meeting to order at 2:05 p.m. 

Chairman McMillan made note of the heartfelt sympathy on behalf of the Board, the Seaway 

community, and the shipping community to Deputy Administrator Middlebrook and welcomed 

his return. Deputy Administrator Middlebrook recognized the SLSDC senior management team 

for their service in his absence. 

II. APPROVAL OF THE MINUTES

On a motion by Mr. Mielke and seconded by Mr. Sulzer, the Board approved the minutes for the 

December 14, 2016 Advisory Board meeting. Without objection, the motion passed 

unanimously, and the December 2016 meeting minutes were approved.

III.ADMINISTRATOR’S REPORT 

Deputy Administrator Craig Middlebrook provided a quarterly update to the Advisory Board 

membership, including a general overview of SLSDC activities following the previous Advisory 

Board meeting:

• He began by discussing the current navigation season traffic. While the last season ended 

on a lackluster note, the 2017 season has been moving at a rapid pace and he noted the 

stable number of international transits and the “reinvigorated industry.” He remarked that 

we have seen significant growth in commercial trade thus far. 
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• Deputy Administrator Middlebrook also discussed the high water level issues due to 

unprecedented weather affecting Lake Ontario and the St. Lawrence River. The recordbreaking water levels on Lake Ontario have caused flooding and damage to riparian 

property owners and businesses. The SLSDC has been closely monitoring this issue with 

the Lake Ontario St. Lawrence River Board to ensure that the incremental increases to 

outflows to try and lower the high water levels have the least impact possible on 

commercial navigation.

• He also discussed several significant budget-related developments since our last meeting.

In early May, the federal government received its FY 2017 appropriations and the 

SLSDC fared well. The SLSDC successfully secured the FY 2017 request level of 

$36.028 million and finally shed the cuts experienced for all of FY 2016 and half of FY 

2017, recognizing Mr. Kevin O’Malley on his outstanding efforts, along with Ms. Nancy 

Scott and Ms. Nancy Alcalde. He also mentioned that the SLSDC recently submitted its 

FY 2018 budget request to Congress and the FY 2019 request to the Secretary.

• With the 2017 appropriations enacted, Deputy Administrator Middlebrook mentioned the 

SLSDC is ready to move forward on two of our most important Asset Renewal Program 

(ARP) projects – tugboat replacement and hands-free mooring. Over this past winter, the 

civil work at Eisenhower Lock for the hands-free mooring system was completed. The 

SLSDC is on pace for the system to be operational at Eisenhower Lock with the start of 

the 2018 season. The SLSDC is in the process of going out with solicitations for the civil 

work at Snell Lock in the next few weeks. The plan is for Snell to become operational 

during the 2019 season. Regarding the tugboat replacement, the SLSDC is in the process 

of re-bidding the contract following a contract cancellation and recovery of funds.

• Providing a perspective on the political transition, Deputy Administrator Middlebrook

reported that the SLSDC has been working very closely with the new team at the 

Department of Transportation, led by Secretary Elaine Chao. He explained feeling

extremely fortunate to have a leader with Washington experience who understands how 

the Executive Branch operates. The new political team has been very supportive of 

SLSDC operations and unique authorities, and the Corporation has fared much better 

than other DOT operating administrations in terms of regulatory review, hiring waivers, 

and budgetary needs. 

• Chairman McMillan remarked about the budget shifts from FY 2016 to present, and 

wanted to know whether the fiscal year budgets line up with the change in administration. 

He went on to ask whether Secretary Chao “owned” the FY 2018 budget, or if that begins 

in FY 2019. Deputy Administrator Middlebrook responded by saying that there is a

juggling of three budgets at any given time, and that the Secretary’s “ownership” would 

be with the FY 2019 budget under the new administration.

• Mr. Mielke remarked that he knew about sailing draft limitations in instances of low 

water levels, so he wanted to know why the same limitations would be in place for high 

water levels. Mr. Lavigne responded to say that for one, we are seeing higher levels than 

we ever have, and two, when ships are going through such high flows upstream, the ships 

squat further in the water. 
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• Mr. Sulzer asked if tugs could help those vessels with steerage and slowdown. Mr. 

Lavigne responded that tugs could provide an expensive solution, but that right now the 

ships are not facing any issues with the current speed limit. He added that the SLSMC 

has a tug located near the Iroquois Lock to assist due to high cross currents in that area.

IV.QUARTERLY UPDATES

Mr. Guimond presented his report on Lock Operations and Marine Services. The 2016 

navigation season officially closed on December 31, 2016 and the last vessel, the G3 Marquis 

bound for Hamilton, passed through the U.S. locks on December 29. Weather and ice conditions 

remained mild throughout the closing period, making it a favorable closing. Total transits 

reached at 2,104, representing 7.5 transits per day over a period of 281 days. Inland vessels for 

the season finished at 1,175, ocean vessels at 891, and tour boats at 38. U.S. ship inspectors 

performed 245 inspections on foreign flagged vessels in ports and anchorages east of Montreal.

Mr. Guimond closed by discussing some other projects, including lock and system reliability, 

ballast tank and safety inspections, winter work, a January 2017 tabletop emergency response 

exercise, the buoy runs last winter and this spring, the annual oil boom exercise with Akwesasne 

Mohawk Council (scheduled for this summer) and the transfer of the SLSDC gatelifter to 

Montreal. This is necessary as the SLSMC dry docks its gatelifter Hercules. 

o Chairman McMillan asked about how it was possible to move the gatelifter and still have 

it available below another lock. Mr. Guimond responded that it must be at the lowest 

point in the system to be able to get to any lock in case of issues. 

o Chairman McMillan asked about the budget and whether the SLSDC would be able to 

complete the Robinson Bay tugboat project. Mr. O’Malley responded, saying that with 

the new levels and a little bit of help, we are on track to complete the tug.

Mr. O’Malley reported on budget and financial management issues. He noted that the SLSDC 

received its FY 2017 enacted budget in early May, at the request level of $36.028 million. The

SLSDC had been operating at the prior year’s approved level, which was $28.4 million. As for 

FY 2019, the SLSDC recently submitted its budget request to the Secretary in late May. The 

request was significantly above the $28.346 million target and closer to the FY 2017 enacted 

level. As a final note, he mentioned that the SLSDC recently submitted documentation to the 

Office of Inspector General (OIG) to close out the two recommendations related to the Seaway 

International Bridge that were included in the FY 2016 financial audit quality control review. 

Ms. Scott gave an update on the FY 2017 audit to be performed by the DOT OIG. She noted that 

the first visit for the entrance conference was held in April, which included a successful meeting 

with the SIBC Bridge Director and walk-throughs of the finance and procurement functions. The 

OIG is now reviewing their findings and will perform interim testing in August. The final review 

will take place in early October, with a final report presented no later than November 15.

Mr. O’Malley and Mr. Schlicht provided a joint report on trade and economic development 

activities. Mr. O’Malley started by sharing his excitement that the SLSDC, the SLSMC, and 

several other U.S. and Canadian stakeholders are re-engaging on an update to the 2011 

Economic Impact Study, noting its importance and utility. He said that the final report is 

scheduled for release in early 2018.
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Mr. Schlicht added some updates to the documentation provided in the briefing book. The 2016 

shipping season tied for the longest shipping season on record and saw 35 million tons through 

the locks including a diverse mix of cargos; imports included aluminum, wind parts, steel and 

project cargos, and exports included general cargos, containers, and U.S. and Canadian grain. He 

noted a sharp increase in iron ore movements early in the 2017 season. He also highlighted the 

SLSDC Pacesetter Awards. For the 2016 season, the SLSDC is recognizing six U.S. ports for 

increased international trade (Duluth, Green Bay, Milwaukee, Buffalo, Toledo, and 

Ogdensburg). News advisories have gone out and the ports have either received their awards or 

are forthcoming. Mr. Schlicht applauded especially the presentation held at the Wisconsin 

International Trade Conference by Associate Administrator Tom Lavigne, which was the largest 

showcase the SLSDC has participated in as part of a Pacesetter presentation.

Mr. Schlicht gave an overview of new and upcoming trade development activities. The Ecoships 

initiative is still in progress and gaining traction between the Ports of Muskegon and Milwaukee. 

The U.S. grain export initiative, in partnership with the SLSMC, Duluth, Milwaukee, Toledo, 

and others is progressing as well. The international marketing activities under the HwyH2O

brand are continuing strongly, leading to the development of a binational, synchronized, and 

sophisticated marketing plan. The Breakbulk Americas conference is slated for October and the 

HwyH2O annual conference will be held in Toronto in November. The Geographix map of the 

Seaway system is under review for its third iteration, and is expected to be available in print in 

2018. Lastly, specific to the Great Lakes Seaway Partnership, Mr. Schlicht and Ms. Alcalde 

together with the other founding members are working on finding a new traditional and social 

media manager to replace Laura Blades.

o Mr. Sulzer requested to hear about the liner trade out of Cleveland. Mr. Schlicht 

responded saying the system is consistent at 2-3 vessels per month.

o Mr. Sulzer also asked about the industry’s understanding of the Seaway as a “front door” 

for business, rather than the Mississippi River. Mr. Schlicht responded to say that the 

mission in Houston has shifted due to some personnel changes at SLSMC. As such, after 

a two-month pause, he expects to reconstitute the marketing efforts in Houston in August.

Associate Administrator Lavigne provided an update on the Asset Renewal Program (ARP), 

starting with a report that the SLSDC received their requested funding of $36 million for FY 

2017. Over the past winter, the slots were cut and the rails were installed at Eisenhower Lock for 

the hands free mooring project. The final step will be the installation and commissioning of the 

units in the lock wall, which is expected to be awarded before the end of September. The 

Robinson Bay tugboat project is ready to go out for proposals any day for re-bid. Lastly, the 

Bailey bridge utilities have been relocated, the gatelifter is being worked on, and the all-season 

buoys are still in place and successfully weathered the winter.

o Mr. Mielke asked a question about the continued issues with the ice flushing valves at 

Snell Lock, wanting to know if the work being done was covered under warranty. Mr. 

Lavigne reported that the ice flushing is still not usable or acceptable. The contractor 

testing and adjustments are covered by the contractor. 

Associate Administrator Lavigne also provided a report on the high water levels. The water 

levels have not been this high since 1918, due to an unusually warm winter and record high 

rainfall in the spring. The outflow from Lake Ontario finally exceeded the inflow from Lake Erie 
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just four weeks ago. Mr. Lavigne confirmed that the flooding had nothing to do with the 

International Joint Commission’s Plan 2014, but he recognized the flooding throughout Lake 

Ontario and in Montreal. While shutting navigation down completely was part of the discussion, 

the economic impacts would be far too great for far too little a positive impact on the flood 

levels. At 10,400 cubic meters per second, the ships are passing without issue. 

Ms. Alcalde reported on Congressional affairs and public relations, beginning with legislative 

affairs. The Vessel Incidental Discharge Act (VIDA) saw some activity early this year and was 

approved as a freestanding measure by voice vote. In May, the Committee attached the VIDA to 

the Coast Guard authorization bill. It is currently awaiting consideration by the whole Senate.

The House introduced their version of the VIDA early in the year. A bipartisan Soo Locks 

Modernization Act was put into motion after a tour of the locks by Michigan legislators, though 

no action has been taken yet. Lastly, Ms. Alcalde noted that while there are no details yet as to 

the Administration’s infrastructure proposal, the basis of the program includes $200 billion in 

federal funds over 10 years with the hopes of garnering another $800 billion in public-private 

partnerships. As for government relations, Ms. Alcalde made note of the Great Lakes Seaway 

Partnership Capital Days. In early January, the principal members of the Partnership met in 

Columbus with the Ohio Lieutenant Governor and key state officials to discuss the importance of 

maritime commerce to the state. The next will take place in Lansing, Mich., in the fall.

Related to public relations and new media, Ms. Alcalde pointed to the briefing book to reference 

press releases on the navigation season opening, Deputy Administrator Middlebrook’s interview 

with Northern New York Business magazine, the Opening of the Eisenhower Lock Visitors’

Center, the Seaway Workers Tribute event in Massena, and the Great Lakes Seaway Partnership.

Finally, in terms of new media, the SLSDC continues to see increases on social media and looks 

forward to forthcoming improvements on the binational website.

o Chairman McMillan asked about the Great Lakes Restoration Initiative which cut or 

zeroed out $300 million. Ms. Alcalde responded to say that while the Administration did 

zero out the total for that program, there was bipartisan dissent and action to restore it. 

They may have to come to a compromise, but the Appropriators realize the need to 

continue these efforts.

Ms. Lavigne provided a legal report. Due to the IJC’s Plan 2014 being approved and publicly 

released on December 8, it was not yet available for print as a hard copy for inclusion in the 

Advisory Board briefing book. The new Plan is a “win-win” situation, with new environmental 

measures that allow for a more natural flow compared to the earlier plan. There are three 

components that were key to DOT’s support and approval: 1) the Plan was still implemented in 

accordance with the Boundary Waters Treaty of 1909 and puts commercial navigation second in 

priority of use; 2) The IJC cannot make changes to the Plan (e.g., the order of approval or the 

trigger levels) without consulting with both the United States and Canada; and 3) the SLSDC has 

a seat on the Board of Control. The Plan went into effect January 1, 2017. 

Ms. Lavigne also noted that the Administration and the Department has focused its attention on 

regulatory reform. She commented that the SLSDC has shown its “tenacity,” pointing out the 

hard work and persistence it took for the Corporation to work with the Department on the review 

and approval of rulemakings and regulations. The SLSDC could negotiate changes in its joint 
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regulations with the Canadians in a timely manner and they were published in the Federal 

Register on March 3 in advance of the Seaway opening. 

V. OLD AND NEW BUSINESS

Chairman McMillan expressed strong interest in finding an opportunity to meet in person during 

the fourth quarter of this year or the first quarter of FY 2018. There was unanimous interest in 

finding an opportunity to meet with a port partner or in Massena. Deputy Administrator 

Middlebrook reminded members of the budgetary uncertainty the SLSDC is facing, and offered 

to get back to them about the in-person meeting. Chief of Staff Wayne Williams presented the 

option of having another teleconference meeting in August, and looking to meet in person in 

Milwaukee in October. Mr. Mielke offered to help set something up for a visit with the Port of 

Milwaukee.

Mr. Sulzer provided an update on his maritime education initiatives. He was pleased to announce 

that the Cleveland Maritime and Aviation School will open this fall and that the Port of Erie is 

working with the local school system to include maritime education into the curriculum. 

VI.CLOSING DISCUSSION AND ADJOURNMENT

The meeting was adjourned at 3:49 p.m. with a motion to close from Mr. Mielke and seconded 

by Chairman McMillan.

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