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

APPROVED MINUTES

COMMISSION REGULAR MEETING FEBRUARY 11, 2014

The Port of Seattle Commission met in a regular meeting Tuesday, February 11, 2014, at Port of

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

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

1. CALL TO ORDER

The regular meeting was called to order at 12:06 p.m. by Courtney Gregoire, Commission Co-

President.

2. EXECUTIVE SESSION pursuant to RCW 42.30.110

The regular meeting was immediately recessed to an executive session estimated to last 60

minutes to discuss matters relating to qualifications for public employment. Following the executive

session, which lasted approximately 60 minutes, the regular meeting reconvened in open public

session at 1:10 p.m.

3. MINUTES

Minutes available for approval are included in the Consent Calendar below.

PLEDGE OF ALLEGIANCE

4. SPECIAL ORDERS OF BUSINESS –

Supporting Quality Jobs to Strengthen our Middle Class:

Perspectives from Seattle-Tacoma International Airport

4a. Opening Remarks – Commission Co-President Courtney Gregoire.

Commissioner Gregoire opened the public hearing and commented on the Port’s long-standing

commitment to supporting good-paying, family-wage jobs in port-related sectors. She highlighted

the process by which the Port Commission intends to gather information to make informed

decisions, including gathering employee and employer contributions and examining information on

broader operational issues and existing workforce development opportunities. She noted the

compensation and benefits available to Port employees and the importance of ensuring quality jobs

for employees of the Port’s vendors and business partners, who work full-time or part-time at Port

facilities, including the Seattle-Tacoma International Airport.

A copy of Commissioner Gregoire’s prepared remarks is, by reference, made a part of these

minutes, is marked Exhibit A, and is available for inspection in Port offices.

Commissioners

Stephanie Bowman

Commission Co-President

Courtney Gregoire

Commission Co-President

Tom Albro

Bill Bryant

John Creighton

P.O. Box 1209

Seattle, Washington 98111

www.portseattle.org

206.787.3000

Tay Yoshitani

Chief Executive Officer

PORT COMMISSION MEETING MINUTES Page 2 of 5

TUESDAY, FEBRUARY 11, 2014

Minutes of February 11, 2014, proposed for approval on July 22, 2014.

Tay Yoshitani, Port Chief Executive Officer, offered a statement on the Port’s role as an engine of

economic development in King County for over 100 years. He noted the roughly 200,000 jobs that

result directly and indirectly from the Port’s operations and pointed out the Port’s 25-year Century

Agenda goal to increase that number to 300,000. Although not explicit in the Century Agenda, Mr.

Yoshitani stated that most or all of the new 100,000 jobs generated by Port operations were

presumed to be family-wage jobs. He expressed the hope that quality jobs solutions would be

equally supported by employers and employees.

4b. Panel One – Airport Operations.

Presentation document(s) provided by Mark Reis, Managing Director, Seattle-Tacoma International

Airport and Chair of the Airports Council International – North America, and Heather Worthley,

Executive Director, Port Jobs:

 Airport presentation slides.

 Prepared remarks by Ms. Worthley.

 Port Jobs presentation slides.

Presenter(s): Mr. Reis and Ms. Worthley.

Mr. Reis commented on Airport operations and related finances as well as the Airport’s

employment landscape. He noted that although takeoffs and landings decreased by 27 percent

over the past ten years, the number of passengers and international cargo rose substantially. He

described significant improvements in concessions revenue and an increase in concessions

revenue per enplanement. Concessions employment increased 124 percent between 2003 and

2013. Mr. Reis noted declining numbers of badged employees and presented employment

turnover rates for various companies operating at the Airport.

Ms. Worthley commented on the Airport’s current workforce development programs. She

described Port Jobs, a small nonprofit agency focused on providing jobs, education, and training to

those with little experience and to women and people of color. Ms. Worthley explained that since

its inception in 2000, Port Jobs’ Airport Jobs center has assisted more than 68,000 job seekers and

helped fill more than 13,000 vacancies at the Airport. The wages offered, types of employment,

and schedules offered for jobs filled with the assistance of Port Jobs covers a broad spectrum.

Without objection, the Commission advanced to consideration of –

4d. Panel Three - Business at the Airport.

Presenter(s): Michael Workman, President, VIP Hospitality.

Mr. Workman commented on his small business, which operates at the Airport with about 40

contracted staff. VIP Hospitality performs a number of services for the Airport, airlines, and other

Airport-based companies, including janitorial, passenger service handling, and lounge services.

He described his use of resources such as Airport Jobs and relationships with the Airport and

airlines to gain experience and skills to rise from his own minimum wage job to become the owner

of a company doing business at the Airport. Mr. Workman noted the entry-level wage at VIP

Hospitality of $11/hour and commented on the opportunities the company provides for

advancement and education. He explained the effect of contract terms as a limiting factor in the

PORT COMMISSION MEETING MINUTES Page 3 of 5

TUESDAY, FEBRUARY 11, 2014

Minutes of February 11, 2014, proposed for approval on July 22, 2014.

wages the company is able to provide to employees. He also commented on his assessment that

increasing the minimum wage to $15/hour for entry-level employees would necessitate raising

wages for employees already earning that much or more per hour corresponding to their additional

experience or increased responsibility. Offering of other employee benefits, such as paid time off

or health care insurance, is dependent on contract terms.

Following completion of agenda item 4d, the Commission returned to consideration of –

4c. Panel Two – Business at the Airport.

Presentation document(s) provided by Joe Waller, Vice President for Business Development,

HMS Host International, and Kathy Taylor, President, Dilettante Chocolate:

 Prepared remarks by Ms. Taylor.

Presenter(s): Mr. Waller and Ms. Taylor.

Mr. Waller presented information on operations of HMS Host at the Airport. Host operates 24

restaurants employing approximately 630 represented workers, 96 percent of whom receive benefits.

These benefits include family health insurance with a monthly employee premium of $40-$50, paid

vacation, overtime pay, and pensions. Providing these benefits costs HMS Host approximately

$6.10/hour per worker. When including benefit cost, entry-level employees receive compensation

that is more than $15/hour. Mr. Waller stated the average compensation for HMS Host employees is

$17.31/hour, including cost of benefits. He elaborated on the importance of employee training and

indicated that the average tenure of HMS employees at the Airport is seven years.

Ms. Taylor outlined her company’s employee policies and operations. Dilettante currently employs

approximately 65 workers in seven cafés throughout the Puget Sound region, including 22

employees at its Airport location, which is open 24 hours/day, 365 days/year. Ms. Taylor stated

that starting wages for her employees are above the state’s minimum wage and that they receive

gratuities as well. Her employees receive paid holidays and sick leave and the opportunity for

medical coverage. Ms. Taylor testified that additional labor cost could be crippling for her business

and that limiting the pool of labor for her operations would be inefficient and costly. She

commented on other expenses inherent in operating at the Airport, including renovation costs, and

described risks unique to small businesses at the Airport. Regarding the Port’s consideration of

wage policy at the Airport, Ms. Taylor noted the importance of examining the value of a diverse

workforce and the presence of small businesses at the Airport and the impact new wage policies

would have on those aspects of Airport concessions. She commented in support of wage policy

being established by law more broadly than by individual municipality.

Commissioner Creighton requested additional information from Port staff on the current status

across the country of street pricing, a policy that caps prices at Airport dining and retail

establishments to achieve consistent pricing between Airport and off-Airport operations.

PORT COMMISSION MEETING MINUTES Page 4 of 5

TUESDAY, FEBRUARY 11, 2014

Minutes of February 11, 2014, proposed for approval on July 22, 2014.

Agenda item 4d having been considered previously, the Commission advanced to consideration of –

4e. Panel Four – Working at the Airport.

Presentation document(s) provided by Elizabeth Tuani, Customer Service Agent, DAL Global

Services, and Dana Stewart, Server, Bigfoot Food and Spirits:

 Prepared remarks by Ms. Tuani.

 Prepared remarks by Ms. Stewart.

Presenter(s): Ms. Tuani, Ms. Stewart, and Jennifer Fulton, Server, Anthony’s Restaurant.

Ms. Tuani spoke of her experience finding employment at the Airport through Port Jobs. She noted

the importance and affordability of medical benefits available to her and her family and

complimented the convenience and flexibility of Port Jobs in assisting Airport employees. She

commented on the challenges Airport employees face in low wages, scheduling inconsistencies

due to airline service delays and cancellations, and safety hazards.

Ms. Fulton commented on the importance of health insurance and sick leave and opined that job

security is a prime consideration for Airport employees. She acknowledged that she and most of

her coworkers make above $15/hour and average 25 to 40 hours per week, based on their own

scheduling choices. Ms. Fulton spoke in support of implementation of the City of SeaTac

Proposition One, adoption of a policy of worker retention at the Airport, and the master

concessions model for dining and retail at the Airport.

Ms. Stewart described her experience of beginning work at the Airport through Port Jobs when she

was only 16 years old. She noted the factors that aided her further education and upward mobility

while working in a non-represented position. Ms. Stewart explained that she receives paid

vacations and holidays and medical benefits, and that her wage at the Airport is nearly $30/hour.

RECESSED AND RECONVENED

The regular meeting was recessed at 3:28 p.m. and reconvened at 3:46 p.m., chaired by

Commissioner Gregoire.

PUBLIC TESTIMONY

As noted on the agenda, public comment was received from the following individual(s):

 Doris Cassan, Licensee, Dollar Rent-A-Car at Seattle-Tacoma International Airport.

Ms. Cassan commented on her experience owning a car rental company with her husband

for more than 40 years. She talked about the high cost of operating an Airport business

and her concerns about unintended consequences of raising the minimum wage.

 Josh McDonald, Local Government Affairs Director, Washington Restaurant Association.

Mr. McDonald commented on behalf of several association members with small

restaurants in the Airport. He offered his organization as a resource for data and context

on issues relating to wage and job quality standards.

PORT COMMISSION MEETING MINUTES Page 5 of 5

TUESDAY, FEBRUARY 11, 2014

Minutes of February 11, 2014, proposed for approval on July 22, 2014.

 Roger McCracken, Managing Partner, MasterPark. Mr. McCracken commented on

MasterPark’s parking facilities in the City of SeaTac. He outlined his company’s

operational structure and competitiveness issues and expressed concerns surrounding

jurisdictional equity with respect to municipalities adopting different wage and

employment standards. Mr. McCracken submitted a map showing the boundaries of the

City of SeaTac, the City of Tukwila, and at the Port of Seattle and showing the minimum

wage landscape where the three jurisdictions abut one another. A copy of the map is, by

reference, made a part of these minutes, is marked Exhibit B, and is available for

inspection in Port offices.

5. UNANIMOUS CONSENT CALENDAR

None.

6. DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS

None.

7. STAFF BRIEFINGS

None.

8. NEW BUSINESS

None.

9. POLICY ROUNDTABLE

None.

10. ADJOURNMENT

There being no further business, the regular meeting was adjourned at 3:50 p.m.

Tom Albro

Secretary

Minutes approved: July 22, 2014.