Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
8E
ACTION ITEM
Date of Meeting
February 13, 2018
DATE: January 22, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Dave McFadden, Economic Development Division Managing Director
Marie Kurose, Workforce Development Program Manager
SUBJECT: Request authorization to fund construction trades training and retention initiatives
Amount of this request:
$3,000,000
Total estimated project cost:
$3,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute contracts for
construction worker outreach, training, and retention services. The contract terms will be two
years with three one-year options for an estimated annual cost of $600,000 in 2018 and 2019,
and a total five-year contract amount of $3 million.
EXECUTIVE SUMMARY
Port staff has been working collaboratively with the City of Seattle, King County, Sound Transit,
Washington Department of Transportation, and City of Tacoma to address the shortage of local
construction workers and to broaden access to training and jobs for underrepresented
populations within the industry. This group is working to develop a pipeline of skilled
construction workers to meet current and future needs driven by Port and other Public
infrastructure projects.
In late 2017, Port workforce development staff partnered with the City of Seattle and King
County to jointly issue a Request for Proposal (RFP) for construction worker outreach, training
and retention services that will increase the number of women, people of color, and those from
economically distressed ZIP codes in the construction industry. This RFP was hosted by the City
of Seattle’s Department of Finance and Administrative Services (FAS), City Purchasing and
Contracting Services (CPCS). The City, County and Port jointly evaluated the proposals.
Each agency will contract separately from the pool of top respondents based on funding
restrictions and programmatic priorities. This request is for approval to execute contracts for
the following services:
• Outreach, Assessment and Referral
• Pre apprenticeship Training
COMMISSION AGENDA – Action Item No. 8e Page 2 of 6
Meeting Date: February 13, 2018
Template revised September 22, 2016; format updates October 19, 2016.
• Retention Services
These investments are aligned with the Port Commissioner’s November 15, 2017 letters to City
of Seattle, King County, Sound Transit “Building an Opportunity Pipeline for Disadvantaged
Communities Through an Interlocal Agreement” and documented as a priority in Resolution No.
3736, Priority Hire Policy Directive.
The Port’s 2018-2019 bi-annual budget for construction workforce development services under
this RFP is $1.2M. Combined with the City of Seattle and King County’s commitment of $1M,
the total from all three public agencies is $2.2M.
JUSTIFICATION
The Port’s growing investments in infrastructure projects at the Airport and other capital
developments will rely on the availability of a skilled trades workforce. Public and private
construction activity has increased and is projected to continue to grow over the next decade.
In the short term it is projected that there will be a shortage of over 4100 skilled workers
between 2018 and 2023.
Over the next 25 years, the region’s public agencies are expected to work over 65 million labor
hours to complete their construction projects. Regional labor supply is forecasted to
underserve demand by an average of nine to ten percent between 2018-2042. These shortages
will cause project delays, and increase the overall cost to the Port as well as other public and
private developers. The demand for trades workers is also growing in the manufacturing and
maritime sectors who are reporting difficulty finding and retaining trades workers due to
increased competition and wages being paid in the construction sector.
This is part of a concerted regional effort to address the shortage of skilled workers in
construction and trades-related industries in the Puget Sound Region. It addresses increasing
demand for skilled construction workers, the result of growing construction activity as well as
an aging workforce. The Port has worked with Sound Transit, City of Seattle, King County,
WSDOT, and City of Tacoma to develop a regional trades strategy. The Regional Trades
Partnership developed a shared roadmap and workforce investment plan that focuses on four
priority goals:
1. Expand pathways to apprenticeships
2. Align and champion for greater workforce diversity
3. Strengthen apprentice retention and completion rates
4. Share accountability for common outcomes
Last year the Port Commission passed Resolution No. 3736, Priority Hire Policy Directive. It
ensures that workers from distressed zip codes are called first on Port capital projects. Priority
hire policy is an integral part of increasing demand for pre-apprenticeship and apprenticeship
training programs. While Priority Hire aims to diversify and increase the construction
COMMISSION AGENDA – Action Item No. 8e Page 3 of 6
Meeting Date: February 13, 2018
Template revised September 22, 2016; format updates October 19, 2016.
workforce, more effort is needed to increase access and retention for underrepresented
individuals. The need for these services is documented in the Resolution.
DETAILS
The total investment through this RFP total $2.2M over two years. This includes $1.2M in Port
funds. The city and county are investing an additional $1,000,000. Both are funding related
initiatives outside of this RFP.
Scope of Work and Investments
• Outreach, Assessment and Referral - $100,000 over two years
Recruitment, screen and refer individuals to enroll in construction pre-apprentice or
apprentice training programs to increase the number of underrepresented groups
(women, minorities, and those in economically distressed neighborhoods). This includes
assessing individuals' skills, readiness, ability to meet minimum qualifications for
entrance and any barriers they may have to entering or succeeding in construction
training and/or employment.
• Pre apprenticeship Training - $1.2M over two years
Classroom and hands-on training to prepare individuals enter apprenticeship. Curricula
includes construction math, safety and orientation and exposure to different trades
occupations and culture of the industry. Additionally, the training programs focus on
building job readiness skills, challenges of working in the industry, and addressing
barriers to employment and retention (e.g.; transportation, childcare, and financial
management). Programs also must develop and maintain relationships with
construction contractors, apprenticeship programs, trade associations and unions.
• Retention Services - $900,000 over two years
A variety of strategies to support apprentices in navigating and the construction
environment, including strengthening mentoring and networking opportunities for
apprentices, training for employers and journey workers on coaching and inclusive work
environments, case management, and referrals and work related and other support
services such as work boots, transportation child care.
COMMISSION AGENDA – Action Item No. 8e Page 4 of 6
Meeting Date: February 13, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Outcomes and Deliverables (Combined Performance)
• Enrollment
100
• Successful Referral*
(*Entered Pre-apprenticeship, Apprenticeship
or Placed)
50
Pre-Apprenticeship Training
• Enrollment
300
• Training Completion
175
• Placements
148
• Retained
140
Retention Services
• Enrolled
300
• Retained
276
Schedule
Activity
• Notify successful bidders – February 14, 2018
• Execute Contracts – March 2018
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Procure support for construction worker outreach, training and retention
through an exclusive Port RFP
Pros:
(1) This would give the Port complete control over the services delivered and outcomes
expected.
Cons:
(1) This approach would be time consuming
(2) Doing a stand along RFP may increase costs for training and retention services.
(3) Services may overlap or duplicate other partner contracts
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. 8e Page 5 of 6
Meeting Date: February 13, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Alternative 2 – Postpone funding for RFP and consider later in the year.
Pros:
(1) This would save the Port money and enable us to get our new Commissioners and
Executive Director up to speed on workforce development initiatives before asking for
investment authorization.
Cons:
(1) This option would contradict Commissioner’s intent expressed in its November 15,
2017 letters to City of Seattle, King County, Sound Transit “Building an Opportunity
Pipeline for Disadvantaged Communities Through an Interlocal Agreement”.
(2) The opportunity to invest in a meaningful partnership to support construction trades
workforce development could be lost
(3) This approach could increase costs and potential for duplication of efforts
This is not the recommended alternative.
Alternative 3 – Execute contracts of up to an annual amount of $600,000 from the pool of top
candidates based on the joint RFP outcomes.
Pros:
(1) This option leverages our investments to create an opportunity pipeline connecting
communities to jobs, regardless of the agency undertaking the project.
(2) This approach will enable the Port and regional partners to establish and implement
common data collection and reporting.
(3) This collaborative process increases efficiency and reduces administrative and
bureaucratic redundancy. With each agency providing funding, the larger amount of
funding available allows proposers to develop a more robust training and retention
plan.
(4) By partnering with other public agencies, conducting a joint selection process, and
reaching a consensus on a provider of construction worker training and retention
services in King County, there is a higher potential of success to increase the training,
employment and retention of women, people of color, and those from economically
distressed ZIP codes in the construction industry.
Cons:
(1) The Port may lose some level of oversight into a commonly funded initiative
(2) The Port may not get recognized for funding all of the organizations.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Annual Budget Status and Source of Funds: $600k
Funds to support Construction Sector were approved in 2017 Budget.
COMMISSION AGENDA – Action Item No. 8e Page 6 of 6
Meeting Date: February 13, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Source of funds: Tax Levy
ATTACHMENTS TO THIS REQUEST
Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
November 28, 2017 – The Commission approved Resolution No. 3736 – Establishing a Priority
Hire Policy Directive
July 25, 2017 – Commission 2018 Budget Priorities – Equity and Associated Policies: Priority
Hire, WMBE, Quality Jobs
May 9, 2017 – The Commission was briefed on Workforce Development Strategies
April 12, 2016 - Workforce Development Strategies and Long Range Plan Briefing
May 26, 2015 – The Commission was briefed on Workforce Development Strategic Plan
Recommendations.
November 11, 2014 – Workforce Development Briefing
September 30, 2014 – Workforce Development Expansion Strategy Briefing
July 22, 2014 – Commission adoption of Resolution 3694, which relates to safety and security at
Seattle-Tacoma International Airport and the necessary hiring standards, training
opportunities, and minimum compensation required to maintain a well-trained workforce
at the Airport, which establishes the need for additional training for Airport workers and
support for their career advancement;
July 1 2014, The Port Commission approved motion on Increasing Workforce Development and
Career Opportunities Activities, which articulates the Port’s major goals for workforce
development and directs the Port to develop strategies to achieve them