6a

PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6a 
ACTION ITEM 
Date of Meeting    September 27, 2016 
DATE:    September 20, 2016 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Ralph Graves, Senior Director, Capital Development 
David Freiboth, Senior Director, Labor Relations 
Aaron Pritchard, Issues and Policy Manger, Commission 
SUBJECT:  First Reading of Resolution No. 3725, a Construction Labor Relations Resolution
to set policy governing employment on projects constructed on Port property. 
ACTION REQUESTED 
Request First Reading of Resolution No.3725, a Construction Labor Relations Resolution that 
creates a Policy Directive governing employment on projects constructed on Port property.
SYNOPSIS 
The purposes of the proposed Policy Directive are to expand access to construction jobs; ensure
fair treatment of workers; promote labor harmony and uninterrupted work progress; and improve
safety at construction sites. Existing construction labor relations policy applies principally to
contracts administered by the Port. The proposed Resolution clarifies policy and extends to
cover all construction taking place on Port property. 
BACKGROUND 
The Port of Seattle Commission and the CEO together develop Policy Directives as stated under
Section 1(A)(2) of the General Delegation of Authority, which Policy Directives, under section
(B)(1)(2) and (3), are intended to provide guidance, inform operations, and deliver standards that
support the effective use of internal audit functions to verify compliance. 
Port of Seattle facilities support regional transportation, job creation and economic development.
Labor harmony is essential to ensure uninterrupted delivery of critically needed facilities. State
prevailing wage standards help ensure equitable pay for construction workers. Apprenticeship
utilization requirements, along with aspirational hiring goals for women and minorities, promote
access to construction jobs. Project labor agreements (PLAs), and related community workforce
agreements (CWAs), provide means to align the interests of public owners such as the Port with
those of construction labor unions.
In 1999 the Port entered into a broad PLA with regional construction unions that governed
employment on many of the construction contracts for airport terminal expansion, construction

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 20, 2016 
Page 2 of 3 
of the Third Runway and creation of the Smith Cove Cruise Terminal. In 2009 the Port clarified
criteria for determining when a PLA would be required and began negotiating and administering
PLAs with in-house staff. In the past five years, 28 of 109 Port major construction contracts have
been covered by PLAs. This 26% of contracts has encompassed 80% of dollars and 66% of jobs
during the period. While PLAs provide the benefits described above, the Port is aware that PLAs
may adversely affect small businesses that are less likely to employ union labor. 
Construction at Port properties may be funded and administered by the Port, administered by
tenants with Port financial support or administered and funded by tenants. The proposed
resolution affirms criteria for determining when the Port will enter into PLAs on projects the Port
administers, requires prevailing wages to be paid on construction contracts funded entirely or in
part by the Port and directs similar criteria and procedures on construction contracts administered
by tenants. 
PLA DECISION CRITERIA 
Project needs for labor continuity and stability 
Project complexity, cost and duration 
Value of having uniform working conditions 
Potential impact of PLA on small business 
Past labor disputes or issues 
Potential impact on project cost 
Specific public safety concerns 
Value of PLA processes to resolve disputes 
LABOR POLICY PROPOSAL FOR 3 TYPES OF CONSTRUCTION CONTRACTS 
Port Contracts 
o  Largely continues per recent practice, with decisions made case by case 
o  Add presumption of using PLA for contracts with labor value exceeding $5M 
o  Continue apprenticeship goals and consider locality hiring 
Port Reimbursed 
o  Encourage employing PLA per Port practice 
o  Require paying and reporting prevailing wages 
o  Establish hiring goals for apprenticeship and locality as part of a regional program 
Tenant Funded 
o  Encourage employing PLA per Port practice 
o  Require paying and reporting wages prevailing wages 
o  Establish hiring goals for apprenticeship and locality as part of a regional program 
o  If a solicitation or negotiation featuring the above requirements fails, then staff
will use a modified set of construction labor provisions in the scoring of
proposals. 


Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 20, 2016 
Page 3 of 3 
ATTACHMENTS TO THIS REQUEST 
Resolution No. 3725 
PowerPoint 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
March 8, 2016  Staff Briefing 















Revised March 28, 2016  pjw

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