Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
7b
BRIEFING ITEM
Date of Meeting
July 25, 2017
DATE: July 12, 2017
TO: Port of Seattle Commission
FROM: Aaron Pritchard, Commission Issues and Policy Manager
SUBJECT: Building Economic Opportunity in Underserved Communities – Commission Priorities:
Equity, Women and Minority Business Enterprises, Priority Hire, Quality Jobs
EXECUTIVE SUMMARY
In early 2017, the Port of Seattle Commission identified its 2017 Commission-wide Work
Program. Priorities in the work plan included Equity, Women and Minority Business Enterprises
(WMBE), and Quality Jobs. Priority Hire was identified as a priority when the Construction Labor
Policy Directive, Resolution No. 3725, was passed on October 25, 2016. The Interim Executive
Director, Commission staff, and Division representatives will briefly define the proposed
policies, will describe the context surrounding the policies including a justification for the policy,
and finally next steps and potential budget impacts will be discussed.
The focus of this presentation will be proposed policies that have an impact on “equity” at the
Port including Priority Hire, WMBE, Equity, and Job Quality.
JUSTIFICATION
The Port of Seattle is an economic development agency and is committed to economic
growth and generating quality, family-wage jobs.
Equity
The Port of Seattle Commission and Port employees have been researching and developing a
framework to begin to address the institutional equity challenges that have faced the Port and
region for decades. As a result, an equity policy for the Port of Seattle will be developed. The
policy could be rolled out this fall and implemented over the next year. Significant challenges
exist to implement these policies including cultural, organizational, financial, and technical. The
Port is ready to undertake these challenges and comes to the Commission today with an
overview of the proposed policy and to address the challenges and a timeline for implementing
the policy. Associated with the equity policy are three policies that address how we do business
with underserved communities.
COMMISSION AGENDA – Action Item No. __7b__ Page 2 of 5
Meeting Date: July 25, 2017
Template revised September 22, 2016; format updates October 19, 2016.
Small Business and WMBE Utilization
The Port of Seattle 2012 disparity study showed a disparity in Port utilization of minority
contractors in airport construction projects. While the Port has made strides to correct course,
we have been unable to meet our goals for contracting with Women and Minority Businesses
Enterprises (WMBE) Port-wide. Our 2016 performance of 5.3% WMBE utilization falls behind
other public sector entities achieving 12-16%. The Port of Seattle Commission has recently held
two outreach meetings with stakeholders to improve small business contracting and to focus
on increasing WMBE utilization. The Executive Leadership Team has heard directly from the City
of Seattle on its program and the Economic Development Division and procurement
department have done significant work to prepare for increased WMBE utilization.
Priority Hire
Data also shows disparity in the region’s workforce development. In particular, our
apprenticeship programs show that 3,121 apprentices are typically in the pipeline at any given
time but that only approximately 600 reach journey level (40%) overall. Completion rates for
people of color (33%) and women (32%) lag behind their white counterparts (43%). The
Projects and Procurement Committee is currently reviewing a Priority Hire policy to address this
disparity.
Quality Jobs
In early 2014, the Port of Seattle Commission began development of policies that address issues
of wage inequality and career development for the men and women who work at Sea-Tac.
Through the Quality Jobs Initiative, the Port has developed a policy framework that is a
targeted solution that specifically addresses the current employment environment at Sea-Tac.
It included a workforce development program that offers enhanced training and advancement
opportunities that support job and economic growth throughout the region. In addition, a
motion was passed in November 2014 directing staff to incorporate Quality Jobs expectations
into future Airport Dining and Retail leases, promoting livable wages, health care, and other
benefits for those employed by tenants and concessionaires. The Port is now considering how
Quality Jobs can be expanded.
According to the 2014-2015 King County Self-Sufficiency Standard, a living wage rate is $16.86
for a single adult and for a family of four (2 adults, one preschooler, one school-age child) the
amount goes up to $19.81. This Self-Sufficiency Standard is a measure of income inadequacy
that is based on the costs of basic needs for working families. Current Port contractors pay at
or above minimum wage and benefits packages vary from minimal to robust. The Port of
Seattle Contracting and Procurement Office and Commission staff are currently developing a
Quality Jobs proposal with options to consider address how we might improve worker wages
and benefits, and how it would impact the Port.
COMMISSION AGENDA – Action Item No. __7b__ Page 3 of 5
Meeting Date: July 25, 2017
Template revised September 22, 2016; format updates October 19, 2016.
DETAILS
Port-wide Equity Policy
o After six months of intensive work with 30 stakeholders, the Energy & Sustainability
Committee introduced a motion in April 2017 that passed the Commission unanimously
and instructed the Environment and Sustainability Center of Expertise to kick off the
process to develop an equity policy for the Port of Seattle. At the same time the
Executive Leadership Team had taken training on Undoing Institutional Racism and had
started exploring how to truly build equity here at the Port. Human Resources was
tasked with translating this training into action.
o The result has been that Human Resources have led the early effort in guiding the equity
policy proposal. This proposal could have wide ranging implications for how we do
business at the Port.
o With the Commission priority areas of Priority Hire, Women and Minority Business
Enterprises program, and Quality Jobs, the result is a Port-wide effort to drive economic
development opportunities toward King County’s underserved Communities. There are
synergies between these policies and would benefit from a cohesive approach.
o Next Steps
Tracy Patterson is leading a working group to look at Equity models/frameworks.
Human Resources is in the process of hiring a consultant to lead the effort on
developing an Equity Framework for the Port in collaboration with the working
group.
Priority Hire
o The Projects and Procurement Committee has done significant work over the last year –
from crafting a new policy that has guided how and when Project Labor Agreements
apply to Port projects, to improving the minority community access to Airport Dining
and Retail.
One area left undefined in the Construction Project Labor Policy was how the Port
would create a Priority Hire program.
Priority hire would identify certain zip codes in King County that are underserved
and require individuals from those areas to be hired on Port projects. On June 29,
the Committee met with the City of Seattle and King County who provided an
overview of their Priority Hire initiatives. The presentation included information
about process, initial outcomes, and challenges of Priority Hire programs and
offered advice to the Port as we explore how the Port would create a Priority Hire
program.
A Workforce Development team has been meeting as part of the Regional Public
Owners group over the last two years to develop strategies to strengthen and
diversify the apprenticeship pipeline across the region.
COMMISSION AGENDA – Action Item No. __7b__ Page 4 of 5
Meeting Date: July 25, 2017
Template revised September 22, 2016; format updates October 19, 2016.
King County has initiated a region-wide supply-demand study incorporating Port,
City of Seattle, King County, WSDOT and Sound Transit projects.
Like Sound Transit and WSDOT, we have billions of dollars of projects coming down
the line and can drive investment into disaffected communities that should have
opportunities in those ultimate economic developments. Workforce Development
coordinated investments in outreach and recruitment to ensure availability of
priority workers can benefit those communities and the Port.
o Next Steps
The next Projects and Procurement meeting will be scheduled in August/September
timeframe and will include external stakeholders (such as Labor representatives,
community stakeholders, contractors, AGC and minority and small businesses) to
hear their feedback on Priority Hire and possible challenges to think about when
implementing Priority Hire.
Explore regionally coordinated investments in training and retention.
Develop internal processes and requirements.
Identify internal infrastructure and staffing needed for success.
Small Business Resolution and WMBE
o Commission has been heading up the public forums on potential changes to how we do
business at the Port.
o The last meeting on May 22 raised many important issues, some of which were
incorporated into at least one contract at the next Commission meeting.
o The second outreach meeting on July 20 focuses on reviewing proposals for changes to
our Small Business Resolution and how we do business with Women and Minority
Business Enterprises.
o While we have made great strides in how we work with Small Businesses we have a long
way to go --- and even longer to go with Women and Minority Businesses.
o Next Steps
Incorporate comments from two meetings into a Policy Directive.
Follow-up meeting with stakeholders to review proposed policy.
Introduce Policy Directive in September/October timeframe.
Quality Jobs
o Port-wide calculation of health benefits and wages in contracts
o The Commission passed improvements to the Airport Dining and Retail program to
include calculation of quality health care and quality wages as part of the scoring for
new entrants into the program.
o The Commission is now considering how such a program can be expanded Port-wide.
COMMISSION AGENDA – Action Item No. __7b__ Page 5 of 5
Meeting Date: July 25, 2017
Template revised September 22, 2016; format updates October 19, 2016.
o Next Steps
Develop a port-wide Quality Jobs Policy that includes high-level guidance (definition
and principles)
Develop a Port-wide implementation plan for the Quality Jobs Policy
• This may be a phased approach: first phase to test a few contracts up for bid
to better understand outcomes, costs, and impacts; second phase will
include additional contracts up for bid; and so forth.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
Priority Hire Briefings
o May 9, 2017 – Workforce Development Update
o April 12, 2016 – The Commission was briefed on Workforce Development Strategies and
Long Range Plan.
Small Business Briefings
o March 22, 2016 – Small Business Utilization briefing
o December 14, 2014 – Disparity Study briefing
o August 19, 2014 – Small Business Utilization briefing
o January 26, 2010 – Adoption of Resolution No. 3618 concerning small business
utilization
Quality Jobs
o July 22, 2014 – Commission adoption of Resolution 3694 regarding quality jobs at
Seattle-Tacoma International Airport.
