Item Number:    6f_motion 
Meeting Date:  February 9, 2016 
As revised     January 26, 2016 
MOTION 
OF THE PORT OF SEATTLE COMMISSION 
SUPPORTING STATE POLICY PROPOSALS, 
INCLUDING HOUSE BILL 2822, TO 
REPEAL RCW 49.60.400 
PROPOSED 
FEBRUARY 9, 2016 

Text of the Motion 
Consistent with the Port Commission's commitment to small businesses, including
disadvantaged, minority, and women-owned businesses, as expressed in Resolution No. 3274,
adopted in 1998, the Port of Seattle supports policy proposals at the state level, including House
Bill 2822 in the current legislative session, that would repeal existing state law, RCW 49.60.400,
which currently prohibits public entities from granting preferential treatment to individuals or
groups based on race, sex, color, ethnicity, or national origin in public contracting. The repeal of
these restrictions will allow the Port greater flexibility in fulfilling its mission of supporting the
economic vibrancy of the region and will contribute to the fulfillment of the Port's Century
Agenda, which calls for the creation of 100,000 new jobs in the region through economic
development efforts. 

Statement in Support of the Motion 
The Port of Seattle is committed to the increased participation of small businesses, quality jobs, 
and the development of a skilled workforce that can support regional economic vitality and
reflect the diversity of our community. The Port takes seriously its role as an economic engine
for King County and the Puget Sound region, and supports initiatives at all levels of government
that contribute to, and strengthen, the Port's fulfillment of that role. The Port has a long history
of working with all communities in King County, including underserved and disadvantaged
groups, to support programs that provide small business opportunities, quality job training, job
placement, pre-apprenticeship, and other education and career development services that connect
to Port tenants, customers, and associated industries. In 1998, the Port of Seattle adopted a
resolution opposing Initiative 200 and supporting the use of policies designed to increase the
representation of minorities and women in employment, application for employment, and
employment-related training programs. Initiative 200 was approved by voters in 1998 and
codified as RCW 49.60.400.

In the last decade, the Port of Seattle has developed a model for its Airport Dining and Retail
(ADR) offering at Seattle-Tacoma International Airport that is characterized by a combination of
"prime" lessee operators and direct leases with local, small, and disadvantaged operators. In
January 2014, the Commission announced its intention to develop employment policies that
support the Port's mission as an economic development agency. The Commission, along with
other regional and national policy makers, recognizes the economic and societal impacts of
income inequality and the decline of the middle class. 
Through its Disadvantaged Business Enterprise (DBE) and the Airport Concessions
Disadvantaged Business Enterprise (ACDBE) programs, established in accordance with U.S.
Department of Transportation regulations, the Port has taken the following actions to support
disadvantaged businesses: 
Ensuring nondiscrimination in the award of U.S. Department of Transportation assisted
contracts 
Creating a level playing field on which DBEs and ACDBEs can compete fairly for U.S.
Department of Transportation assisted contracts and in the airport dining and retail
opportunities. 
Assisting in the identifying and removal of barriers to participation for DBEs in
federally assisted contracts 
Assisting in the development of Disadvantaged Business Enterprises, in order to
increase their competitiveness in the marketplace 
The Port of Seattle has a three-year race-conscious goal of 4.76 percent Disadvantage Business
Enterprise utilization for its federally assisted contracts. The Port also has a 21.2 percent
utilization goal for its ACDBEs. 
In addition, the Port of Seattle has focused on promoting contracting competitiveness for small
businesses in the region. Through a partnership with King County, a small business participating
in the Small Contracts and Suppliers Program (SCS) can fill out one application to be certified as
an SCS firm for all government agencies involved. During 2014, SCS certified firms received
more than $31 million through port contract and subcontracting opportunities. The SCS was
authorized in 2012 by Resolution 3618, which identified the following goals for the program: 
Increase opportunity and utilization of SCS firms in Port procurements; 
Identify and reduce barriers to equal opportunity and participation by SCS firms in Port
procurements and contracts; 
Develop comprehensive outreach and communication strategies to provide SCS firms
an opportunity to participate in Port procurements and contracts; 
Engage and partner with other public and private entities to enhance resources and
gather best practices; and 
Develop, implement, and operate a system of data collection for the Program. 
During 2014, SCS certified firms received more than $31 million through port contract and
subcontracting opportunities.

Even with those efforts, however, strong evidence points to many obstacles that minority- and
women-owned businesses face in competing for contracts in the public sector. 
In 2014, the Port of Seattle completed a disparity study to learn more about its successes and
challenges as an organization in the area of minority- and women-owned business contracting.
The study sought to identify race and gender disparities in the awards of construction-related
contracts between January 2010 and September 2013. 
The study found that: 
Port utilization of minority-owned and women-owned business enterprises for
construction and construction-related contracts was substantially below what might be
expected based on the availability of those contractors 
All categories of minority-owned businesses displayed utilization rates that were below
parity 
The  Port should continue to track the participation of disadvantaged business
enterprises, and should make efforts to ensure that mechanisms for monitoring the
performance of these enterprises are enforced. 
State law (RCW 49.60.400) prohibits public entities from granting preferential treatment to
individuals or groups based on race, sex, color, ethnicity, or national origin in public contracting.
This law constrains the Port in its ability to implement the findings of the disparity study by
restricting programs designed to ensure that all qualified persons have fair and equal access to
participation in public-funded contracts, and to engage in employment policies that support
regional economic growth and prosperity. 
The repeal of RCW 49.60.400, associated with future potential actions that seek to further open
public contracting to all disadvantaged businesses, will allow the Port to continue to advance its
mission of supporting family-wage job growth and ensuring that growing prosperity in the Puget
Sound region is shared by all communities equally.