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6e_motion
September 11, 2018

MOTION 2018-10:
A MOTION OF THE PORT OF SEATTLE COMMISSION
modifying the executive director employment agreement
with Stephen Metruck to increase the amount of
relocation reimbursement due to changes in federal tax
law to account for taxes withheld from reimbursement
payments; providing an effective date.
PROPOSED
SEPTEMBER 11, 2018
TEXT OF THE MOTION
The Port Commission hereby modifies the employment agreement approved by the
Commission on December 19, 2017, appointing Stephen Metruck as Executive Director of the
Port of Seattle, to increase the amount of relocation reimbursements to account for taxes
withheld from payments, and to increase the maximum amount of relocation reimbursement
from $100,000 to $133,000, in consideration of changes in federal tax law.
This motion shall be applied retroactively to the effective date of the employment agreement.
STATEMENT IN SUPPORT OF THE MOTION
The Port's employment agreement with Executive Director Stephen Metruck approved
December 19, 2017, provides for relocation expense reimbursement to assist him in moving his
residence from outside the state of Washington to the Seattle area. The maximum amount of
all relocation reimbursement was set at $100,000, subject to the terms of Attachment B of the
employment agreement (attached).
Federal tax law in effect at the time the agreement was approved allowed individuals to claim a
deduction for moving expenses paid in commencement of work at a new principal place of
work. The port anticipated Executive Director Metruck would be able to deduct federal income
taxes on the reimbursements.
The federal Tax Cuts and Jobs Act, signed into law on December 22, 2017, made several
changes to the taxability and deductibility of relocation reimbursements. Effective December
31, 2017, an employee can no longer deduct moving expenses, nor can an employer pay or
reimburse an employee's moving expenses on a tax-free basis.

Motion 2018-10 - Executive Director Relocation Reimbursement

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Due to these changes in the tax law, Executive Director Metruck would be required to pay taxes
on his relocation reimbursements, and thus the relocation benefit would be reduced below the
amount authorized by the commission prior to enactment of the tax law.
This action would increase Executive Director Metruck's relocation reimbursement and would
increase the maximum total amount of the relocation reimbursement to reflect anticipated
taxes on the approved relocation benefit. The action would be applied retroactively to
reimbursements previously approved. He has previously submitted reimbursement receipts for
some expenses and it is assumed he will request reimbursement to the maximum originally
anticipated amount of $100,000.
Adoption of this revision will honor the intent of the employment agreement. All other terms
and conditions of the employment agreement shall remain the same.
ADDITIONAL INFORMATION ATTACHED
Employment agreement executed December 19, 2017

Motion 2018-10 - Executive Director Relocation Reimbursement

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