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8a_motion
June 11, 2019

MOTION 2019-09:
A MOTION OF THE PORT OF SEATTLE COMMISSION
amending prior policy statements of the Port Commission
regarding street pricing principles for the Airport Dining
and Retail program at Seattle-Tacoma International
Airport; implementing an amended pricing policy for the
Airport Dining and Retail program; and authorizing the
Executive Director to take such necessary actions to
implement the amended pricing policy.
PROPOSED
JUNE 11, 2019
INTRODUCTION
The Port of Seattle Commission has previously passed two motions directing policy for the
Airport Dining and Retail program (the "ADR Program") at Seattle-Tacoma International Airport,
including policy direction with respect to prices charged by ADR Program concessionaires for
products and services provided at the Airport.
By motion entitled "Motion of the Port of Seattle Commission Regarding Quality Jobs, Service
and Employment Continuity Assurances for the Airport Dining and Retail Program," adopted
November 25, 2014, the Commission articulated various guiding principles for operation of the
ADR Program, including one principle calling for "continuation of 'street pricing' of products
and services."
Subsequently, by motion reflected in Port Commission Meeting Minutes dated November 24,
2015, Item 6.d, the Commission approved a temporary, conditional policy to authorize "street"
pricing plus up to ten percent (10%), with subsequent steps down year by year, to return to
strict street pricing effective January 1, 2020.
This motion revises the street pricing principle in the motion adopted on November 25, 2014,
repeals the temporary street pricing policy authorized by the motion adopted November 24,
2015, and establishes an amended pricing policy allowing ADR Program concessionaires to
charge street pricing plus a maximum of ten percent.

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TEXT OF THE MOTION
(1)

The Commission hereby amends the principles of ADR Program redevelopment within
the Statement of Policy Direction section of the Commission motion adopted November
25, 2014, to delete, in its entirety, the following principle:
5. Continuation of 'street pricing' of products and services

(2)

The Commission hereby repeals, effective January 1, 2020, the temporary street pricing
policy established by the Commission motion adopted November 24, 2015 (Port
Commission Meeting Minutes dated November 24, 2015, Item 6.d).

(3)

Amended Pricing Policy for ADR Concessionaires.
(a) The Commission hereby adopts and authorizes the Executive Director to implement
an amended street pricing policy to allow concessionaires in the ADR Program to set
prices at not more than ten percent (10%) above "street" prices for all products and
services sold at the Airport ("Amended ADR Pricing Policy"); provided, that this
Amended ADR Pricing Policy will only be extended to concessionaires if they offer:
1. Wages equal to or exceeding the minimum wage standards set forth in Chapter
7.45 of the City of SeaTac Municipal Code;
2. Payment of sick and safe time, which shall be accrued at the rate of one hour for
every 40 hours worked;
3. Health insurance to full-time employees, consistent with the Affordable Care
Act; and
4. Comply with any reasonable request from Port staff for verification of actual
wages paid to the tenant's employees.
The above requirements (1.) through (4.) may be waived for employers with a bona
fide collective bargaining agreement.
(b) The Executive Director is directed to begin implementation of this Amended ADR
Pricing Policy, including review and processing of ADR Program concessionaire
requests for approval of price adjustments based on the Amended ADR Pricing
Policy.
1. Beginning on January 1, 2020, eligible ADR Program concessionaires may charge
approved street pricing plus up to a maximum of ten percent (10%) under this
Amended ADR Pricing Policy.

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2. Until January 1, 2020, concessionaires shall continue to adhere to the current
street pricing policy established by the Commission motion adopted November
24, 2015 (Port Commission Meeting Minutes dated November 24, 2015, Item
6.d). Concessionaires who do not satisfy requirements (1.) through (4.)
identified in paragraph (a) above, as verified by the Port, shall be limited to
charging strict street pricing for their products and services commencing January
1, 2020.
(c) The Executive Director is further authorized to take all such actions as necessary to
implement the Amended ADR Pricing Policy described herein, including:
1. Development of (or adjustment to) procedures for review and confirmation of
proposed concessionaire pricing;
2. Revision to operational policies and procedure relating to pricing requirements
for ADR Program concessionaires;
3. Preparation and execution of necessary lease amendments, addenda and/or
other documentation necessary to approve pricing of ADR Program
concessionaire products and services and adherence to the Amended ADR
Pricing Policy.
STATEMENT IN SUPPORT OF THE MOTION
In taking this action the Commission intends to support the Executive Director's
recommendation to establish an amended policy to allow ADR Program concessionaires to
charge street pricing plus up to 10 percent (10%) for products and services offered at the
Airport. The Commission and staff have heard from large prime operators as well as small, local
and minority-owned concessionaires who have expressed concern regarding the increased cost
of doing business at the Airport and the impact of those higher costs on their ability to operate
viable businesses.
These cost pressures are evident in the building out and refurbishing their units, the wages and
benefits paid to their employees and the services that are necessary to operate their businesses
at the Airport (for example, security badging, parking, common area maintenance fees, unified
pest management, trash recycling, and adherence to Commission Resolution No. 3725).
Higher costs in these areas, together with the scheduled return to required strict street pricing
in January 2020, has decreased the interest of new firms in bidding for leasing opportunities at
the Airport and has led several current concessionaires to express concerns about their ability
to operate profitable businesses.
The Commission recognizes that circumstances at the Airport will continue to evolve and
flexibility may be necessary to reach our mutual goals of excellent customer service and
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attractive dining options. However, by this motion, and consistent with these goals, allowing
street plus 10% pricing provides concessionaires with an enhanced ability to recover their
higher costs, improves the opportunity for concessionaires to procure quality products and staff
resources, and will likely increase the number and variety of small-business and other
proposers for future concessions opportunities at the Airport.

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