Item No.  7d_attach_2 
Date:    August 19, 2014 

OSR 
2015 Budget Strategies 
Presentation to Commissioners

Table of Contents 

Background ....................................................................................................................2 

OSR Mission ...................................................................................................................2 

OSR Values .....................................................................................................................2 

OSR Programs ...............................................................................................................3 

Support Century Agenda Strategies ............................................................................4 
2014 Approved Budget and Allocation ........................................................................5 
Small Business Program ........................................................................................ 6 
Workforce Development Program .......................................................................... 7 

2015 Proposed Budget ..................................................................................................8 
Small Business Program ........................................................................................ 9 
Workforce Development Program ........................................................................ 10 

Legal Assessment ....................................................................................................... 11 

OSR Strategies in Detail .............................................................................................. 12 





OSR | 2015 Budget Strategies   1

Background 
The Office of Social Responsibility (OSR) was established as the Port of Seattle's go-to
resource for policy and actions with social responsibility and equity implications. We
recommend policy, develop strategies and implement plans that move the port forward in the
areas of small business advocacy, technical assistance, community outreach, social justice,
workforce development and access to port related economic opportunities for all members of
the communities we serve. 

OSR Mission 
The Office of Social Responsibility supports the Port of Seattle's job creation and economic
development efforts in the communities we serve, and our programs help ensure that
port activities are conducted within a framework of equity, inclusion and equal access to
economic opportunity. 

OSR Values 
In the Office of Social Responsibility we: 
Collaborate with Port staff, contractors and business partners to maximize the ability for
people to achieve their full potential. 
Work to remove barriers to increase participation by small and disadvantaged businesses
in procurement and contracting opportunities at the Port. 
Endeavor to be an inspirational catalyst for equity and social change throughout the Port
and local community. 
Recognize individual and collective commitment to social responsibility 






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OSR Programs 
OSR works closely with all departments throughout the Port to implement socially responsible
programs. These programs include, but are not limited to: 

Small Business Program 
Small businesses are critical to the economic vitality of the region. The Port of Seattle's
Small Business Program aims to encourage healthy competition, while also increasing the
number of small businesses applying and competing for Port procurements. Through the
Port's Century Agenda, we are focusing on establishing a forty (40) percent goal of the
Port's eligible dollars spent over the next 25 years. 

Workforce Development 
OSR supports workforce development of policy and programs that provide quality job
training, as well as job search assistance and apprenticeship opportunities to ensure that
all members of our community have access the jobs created by the Port and its tenants. 

Community Engagement and Social Justice 
OSR supports a variety of efforts at the Port that include elements of community
engagement and/or social justice. For example, OSR staff is directly engaged in supporting
phase 2 of the Clean Truck program that requires trucks model 2007 or newer. OSR also
attends events in the various ethnic communities to better understand the relevant issues
that impact these communities. 







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Community Giving 
Port employees give back to the community by participating in the annual
Community Giving Campaign managed by OSR. Through this program, employees
donate money and also volunteer their time to a wide range of nonprofit efforts  
from the United Way to homeless shelters, food banks, health care research and
education. 

Support Century Agenda Strategies 
OSR supports the Century Agenda by "Using our influence as an institution to
promote small business growth and workforce development". The following are the
OSR strategies: 
o  Increase the proportion of funds spent by the Port with qualified small
business firms on construction, goods and services to 40% of the eligible
dollars spent 
o  Use our influence as an institution to promote small business growth and
workforce development 
o  Increase workforce training, job and business opportunities for local
communities in maritime, trade, travel and logistics 







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2014 Approved Budget and Allocation Methodology 

$ Allocation by Division             % Allocation by Division 
Total                                                        Real
Class/SubClass                      Airport     Seaport    Real Estate    Total     Airport   Seaport 
amount                                               Estate 
Org 2300 
Includes OSR salaries, core programs    $1,335,666   $1,089,903   $203,021    $42,741    $1,335,666   81.60%   15.20%   3.20% 
administration and one-time items* 
Org 1870 
Port Jobs, includes contract payment 
plus $200k for AOP and in-kind        $314,788    $252,775    $50,366     $11,647    $314,788   80.30%   16.00%   3.70% 
contribution (office supplies) 
Excludes in-kind space rental cost 
Org 4130 
Port Jobs (Airport Jobs), includes 
Contract payment and in-kind 
$536,783    $536,783      $0        $0      $536,783   100.00%   0.00%    0.00% 
contribution (office supplies, one time 
$70k furniture and laptops) 
Excludes in-kind space rental cost 
Totals    $2,187,237   $1,879,461    $253,387    $54,388    $2,187,237 

* 2014 approved One-Time Items ($240k) include:  $50k for maritime related workforce strategy implementation, $50k
airport workforce related strategy (to be used for a portion of the cost of the consultant who will assist with RFP and
WFD strategy development), $25k for construction and skilled-trade/apprenticeship analysis, $$70k for Port Jobs airport
office computers and furniture to meet mezzanine relocation needs, and $45k for an FTE in OSR (data analyst) to support
metrics and research. 


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2014 Approved and Budgeted Small Business Strategy Elements 
1.  Two FTEs dedicated to small business issues, plus proportional salary distribution from
the rest of team. 
2.  Planning and implementation of approved expenses for advertising and events planning 
3. Tracking of all relevant data associated with the port's small business spending 
4.  Oversight of DBE program as required by FAA 
5.  Support the ACDBE Concessions Program 
6.  Participate in acquisition meetings and CPO process 
7.  Ensure Small business compliance (audit function) 
8.  Provide SCS internal training (buyers, PMs, CMs, RDRs) 
9.  Provide vendor support and training on how to do business with the Port 
10. Conduct frequent and strategic community outreach 
11. Liaison role with Commission Office on Small Business related issues 
12. Manage verification & maintenance of small business certification 
13. Data analysis and reporting of small business and minority inclusion utilization 
14. Manage Port contribution to Highline Small Business Development Center (SBDC) 
15. Manage the ongoing disparity study 









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2014 Approved and Budgeted Workforce Development Strategy Elements 
1.  The existing budget allows for two thirds of an FTE dedicated to workforce development
issues, plus expenses associated with advertising, promotion, conferences and events
and the tracking of all relevant data. 
2.  A second FTE was approved for July 2015 to manage the increased workload in
database management and research in all OSR areas. Proportional time allocation of
the rest of the OSR team will be part of the 2015 budget process 
o  Manage Port Jobs contract including Apprenticeship Opportunities Project (ANEW) 
o  Track and report on apprenticeship utilization in Port contracts 
o  Manage and/or support some of the High School internship opportunities in maritime 
3.  Labor market, economic impact, and workforce development research and Analysis 
4.  Apprenticeship Utilization (formerly managed by LR) 
5.  High School Interns (Corporate) 
6.  National Urban Fellows (low cost/high output staff augmentation) 
7.  Support Veterans Fellows initiative 
8.  Manage metrics including tracking apprentice utilization on large public works projects,
communicating requirements and goals to contractors and reporting utilization to
Contract Administrators, Resident Engineers, Contractors and Labor Relations 
9.  Conduct frequent and strategic community outreach 
10. Participate in and support efforts of other workforce development agencies, local
governments, industry associations, community organizations, schools, and other
training providers in port sectors 
11. Collect and report on workforce development impacts of service contracts awarded to
employment services providers (i.e. Lost & Found, P69 janitorial) 
12. Support efforts by industry, local governments, and community organizations to secure
outside/federal funding for port-related workforce development in the region 




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2015 Proposed Budget 
Allocation distribution and/or allocation formula for all OSR budget items including current and future sources of funds are
under review, in particular for funds related to workforce development allocated to the airport, including the space cost
allocation for airport and non-airport uses. A revised allocation will be provided by late July, 2014. 
2014                                 2015 
Work Areas     Approved         2014 Budget Notes          Proposed           2015 Notes 
OSR Core Work     $897,000   Salaries, programs implementation,      $996,000    10% increase for core programs
oversight, policy guidance, contract                 including salary adjustments and
management, community outreach,              $70k to cover the new FTE added in
community giving, promotional ads,                2014. 
High School internships and National
Urban Fellow. 
OSR One Time     $240,000   $50k maritime, $50k airport WFD, $25k    $50,000    Consulting services to support
Items Approved           skilled-trade & apprenticeship analysis,            deeper analysis of disparity study
by Commission             $70k for PJ airport office computers and            results including additional outreach
furniture, $45k OSR data analyst.                    efforts and potential legal review. 
Small Business     $200,000   Includes $190k expenses for disparity      $40,000     Support SBC (Highline), additional
External Contracts            study, plus support SBDC (Highline)                 technical assistance to small
businesses (partners or contracted
services) and support disparity study
recommended remedies. 
Workforce       $850,000   Port Jobs contract, including Airport     $1,900,000*   *Estimated amount 
Development            Jobs, plus AOP (pre-apprenticeship              PJ contract will be replaced with new
External Contracts            program) and in-kind contribution to                contract(s). Development of RFP
Port Jobs.                                     underway. Final 2015 amount will be
determined with WFD consultant per
plan. May include higher valuation
of in-kind space. 
Total            $2,187,000                                $2,986,000 
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2015 Planned Changes to Small Business Strategy Elements 
1.  NEW:  Develop and implement revised small business program/resolution 
2.  NEW: Transition small business program from SCS focused to a Small Business
and Inclusion Program 
3.  NEW:  Rebrand internal and external (community) communication 
4.  NEW:  Assess results of disparity study due out in August-September 2014 
5.  NEW:  Recommend and manage a revised overall small business strategy postdisparity
study 
6.  NEW:  Potential support of legislative efforts to promote increased small business
participation 
7.  NEW:  Develop policy recommendations re: CDD procedures to address findings 
8.  NEW:  Implement other changes to the small business programs, as appropriate 
9.  EXPAND:  Continue to develop partnerships as it relates to small business efforts 
(Tacoma, Everett, Bellingham) 
10. EXPAND:  Ensure Small Business and DBE compliance (audit function)  which 
includes construction site visits 
11. EXPAND:  Recommend additional metrics and more effective tools including 
customized reports to allow Port staff to make informed procurement 
and contracting decisions 
12. EXPAND:  Liaison role and staffing support with Commission Office on Small 
Business related issues 
13. EXPAND:  Conduct frequent and strategic community and community 
organization engagements as it pertains to Port Small Business 
efforts and opportunities 
14. EXPAND:  Small Business internal training (buyers, PMs, CMs, RDRs) 
15. EXPAND  Increased participation in acquisition meeting, selection teams, CPO 
process regarding small businesses 

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2015 Planned Changes to Workforce Development Strategy Elements 
1.  NEW:  Develop and implement revised workforce development strategies following 
commission approval of quality jobs resolution and motions, including
revision to existing contracts 
2.  NEW:  Manage the competitive solicitations for associated services needed to
implement the Commission driven workforce development strategies
including hiring consultants and increased interaction with Port teams in the 
divisions 
3.  NEW:  Implement new and detailed allocations of OSR costs including internal cost 
(salaries, promotion, outreach, etc.) and detail allocation of all external
contracts to minimize legal risks with issues of revenue diversion 
4.  NEW:  Define and recommend potential additional sources of funding for workforce
development efforts 
5.  EXPAND:  Investment from about $1 million to about $2 million 
6.  EXPAND:  Job Matching efforts from the Airport and Construction to include 
Maritime sector as well 
7.  EXPAND:  Training & Advancement at the Airport and in Maritime, continue at 
current level in Construction 
8.  EXPAND:  Development of logistics related efforts through third party contracts 
9.  EXPAND:  Finalize, approve, and begin implementing new comprehensive 
Workforce Development strategy and resolution/policy 
10. EXPAND:  Increase self-performed workforce development efforts to align with 
external policies/efforts 




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Recent Legal Assessment 
A recent analysis conducted by the port's legal department indicates that there are
risks associated with the use of airport revenues to fund certain workforce
development efforts. These risks must be minimized with adequate tracking and
compliance with the FAA's guidelines to avoid the issue of revenue diversion. The
legal assessment also affirms that under the applicable state RCW, the port has the
authority to engage in workforce development efforts, including new and/or
expanded efforts, as long as certain conditions are met, and the port may expend
funds to engage in these efforts, but some sources of funds have significant
restrictions as to their use, so careful analysis and determination of funding sources,
resource allocation and tracking will be essential. 

The port may contract with one or more nonprofits, pre-apprenticeship programs,
and/or educational providers, or self-perform some or all of the workforce
development efforts it chooses to pursue. To limit the risk in engaging in future
workforce development efforts, the Commission should adopt a resolution that
deliberately and intentionally lays out their findings, intent, and choices. 

OSR will work closely with the legal and finance teams to ensure compliance, and to
determine the opportunities that exist, including the re-evaluation of the in-kind
contribution, which will be addressed as part of the new contract(s) for employment
and workforce development services. Also potential need for new legislation 
authority may be considered. 






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OSR STRATEGIES DETAIL 

I   SMALL BUSINESS PROGRAM 
Objective 
Increasing the percentage expenditures that go to small businesses increases
the dollars that go back into our local economy, spurring economic development
that is the Port's mission. Increasing the percentage expenditures that go to
small businesses increases the dollars that go back into our local economy,
spurring local economic stimulation and job creation. 
Program Drivers 
o  Century Agenda 40% small business goal (Attained 30% in 2013) 
The Port Commission determined that in 25 years the Port should spend at
least 40% of its total expenditures with small businesses. This requires a
Port-wide effort and OSR has responsibility of implementing the necessary
strategies and programs. 

o  Port Values 
We honor our commitments to one another, the community and our
customers, and we provide outstanding service and value to each other, our
customers, the citizens of King County and the region we serve. 

o  USDOT/FAA Requirements 
As a recipient of Federal grants, and under the grant-assurances regulations,
the Port must comply with Federal regulations that apply to DBE, ACDBE and
Title VI. OSR must ensure compliance by remaining active in all aspects of
procurement and the creation of opportunities to certified DBE businesses. 



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o  Small Business Resolution 
In February 2010, the Port Commission approved Resolution 3618,
authorizing the CEO to establish all the necessary systems to establish
contract requirements for the participation of King County certified Small
Contractors and Suppliers "SCS" in Port opportunities. OSR has
responsibility for the outreach, goal setting, tracking and reporting of SCS
participation. 
o  Community Engagement 
Manage all concerns and expectations regarding small business
opportunities, including event participation, membership in organizations and
direct interaction with individuals and community based organizations. 

II      WORKFORCE DEVELOPMENT PROGRAM 
Objective 
The Port's Century Agenda vision is that we will add 100,000 jobs to the region
through our economic development efforts. Growing the local economy requires
a skilled workforce. Through OSR, the Port supports programs that provide
quality job training, job placement, pre-apprenticeship, and other education and
career development services associated with port tenants, customers, and
associated industries. We support community inclusion and strive for equal
access to economic opportunity. 
Program Drivers 
o  Century Agenda Workforce Development Strategy 
Support increase workforce training, job and business opportunities for local
communities in maritime, trade, travel and logistics. OSR ensures alignment
of the Port's vision and direction with the port communities and alignment
between workforce needs of companies in port-related sectors and the
pipeline of qualified candidates. 


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o  Port Values 
We honor our commitments to one another, the community and our
customers, and we provide outstanding service and value to each other, our
customers, the citizens of King County and the region we serve. 
III  COMMUNITY GIVING 
No budget change in 2015 from the current $20/k allocated to Community Giving
Campaign and related efforts. 















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