PORT OF SEATTLE
MEMORANDUM

AGENDA   ,         Item'No.
. COMMSSION
6a_n1emo_overview
STAFF BRJEFING
Date of MeetingMM

DATE:   June 26, 2014
T0:    Tay Yoshitani, ChiefExecutive Ofcer

FROM:  Mark Rois, Managing Director, Aviation Divisi -
,
Michael E111, Director, Aviation Operations         "TQM
Wendy Reite1, Director, Aviation Security 85 Emergency Prepmedness
SUBJECT: Mnimum Requirements for Aeronautical Workers with Safety and Security
Responsibilities at SeattleTacoma International Airport

OVERVIEW

The Port of Seattle recognizes that the safe and secure operation of Seattle-Tacoma International
- Airport (Sea-Tao)1s one of our paramount responsibilities For more than six months, the Port has
been reviewing the work environment and conditions for workers at Sea~Tac Airport This
evaluation included surveying employers and contractors responsible for airport security,
passenger handling, aircraft handling and ramp duties, and other duties on the Airport Operations
Area (AOA). The review also included studying wages, benets, and employee turnover rates;
collecting data on wage and benet levels; analyzing data, ndings, and programs of other airports
and benchmarking Sea-Tao against those
,                                                airports; reviewing testimony from two Commission
hearings that gathered the perspectives of employers, employees, and other airp01ts; and
conductingmperso'n meetings withmany businesses, labor organizations, and other stakeholders.

Port staff concludes that higher wages and increased training opportrmies will reduce tumover
and imprOve employee satisfaction in critical functions at the Airport, as has been demonstrated
at San Francisco International Airport. Port staff nther concludes that reduced turnover and
increased employee satisfaction will result in an employee base with more experience that, when
substantially reinforced with training, will in turn lead to safer and more secure . Airport
operations. To address these issues, staff recommends the Port establish minimum compensation
'
and training standards through its authority to adopt necessary regulations for Airport operations.

BACKGROUND

Seattle-Tacoma International Airport is a major south King County employment center and a
critical part of economic development infrastructure for the Seattle region, the state of
Washington, and the entire Pacic Northwest. It is the front door to this region and the gateway              5
for people and businesses to the world. The Pacic Northwest economy depends on its safe and-
effecve operations.

QUE/EMISSION AGENDA
Tay Yoshitani, ChiefExecutive Ofcer
June 26, 2014
Page 2 of 13

SeaTao is in a peiiod of exciting and chall'engmg growth. It is the nation's fastest growing
gateway to Asia and is in the midst of a major capital program that will expand its capacity,
enhance its efciency, and n'ther improve its ability to provide excellent customer service.

All of the above requires the highest standards of safe and
secure operations. In addition, and just

as in1po1tant to the economy of the region and the operations of the Airport, Airport personnel
must be prepared and capable to assist in emergency events to maintain and/or restore continuity
of Airport operations in response to minor problems or major incidents.

MAINTENANCE OF SAFE AND SECURE AIRPORT OPERATIONS
Aviation safety and Security is a mdamental expectation of
our airborne society; Due to the
inherent complexity of the aireld operating environment, the Port, airlines, contractors, security
agencies, and others must minimize the risks associated with the complicated and constant
movement of aircraft, personnel, and equipment on. the aireld, as well asmitigate the risks of
security breaches/incidents that can suspend Airport operations.

In addition to these risks, any signicant disruption to the Airport's routine functions
can have a
substantial negative impact on the entire region. The Airport must maintainroutine operations
and remain p1epared to reSpond and recover from emergenCies effectively and efciently. All of
this requires a skilled workforce capable of ensuring safe and secure continuity of business
operations at all times. .

The Port holds a proprietary interest in, and regulatory oversight over, the work at Seattle-
Tacoma International Airport The safety and security of Airport operations relies signicantly
on the ability of companies operating on or in proximity to the AOA to retain a skilled
workforce, since many of these employees have access to the aireld, aircraft, and other
equipment that supports critical Airp01t ope1ations. Key functions associated with operating and
maintaining a safe, secure Airport include:

Security:
0  Passenger and facility security


- Passenger check-in activities


0  Checkpoint screening


0  Skycap and baggage check~in and handling services


0  Airport Operations Area (AOA) perimeter control


.  Access control to secure areas


0  Wheelchair attendant services


a  Baggage and cargo handling


0   Ground support equipment maintenance

COMBHSSION AGENDA
Tay Yoshitani, ChiefExecutive Ofcer
June 26, 2014               '
Page 3 of 13

6   Fixed base operator activities


International passenger assistance

Safety:
9   Aircraft handling mctions (aircraft cleaning, ieling, and baggage/cargo handling, load
balancing, marshaling, dispatching, and aircraft maintenance) ' '
6  Operating catering vehicles on the AOA for the purpose of servicing aircraft


9  Other employees issued an Aiipo badge with AOA access, regularly working in and
around the airCraft

(The area where all of this work is performed is referred to as the Airport Operations Area, or
AOA, which is dened ,as the area exterior to the passenger terminal buildings and under
restricted access within the Airport perimeter fence.) '

PORT EVALUATION OF EMPLOYNIENT AND CONDITIONS-AT SEATTLE
TACOMA INTERNATIONAL AIRPORT

There are currently 671. employers (including 178 tenants) operating at the Airport. Data from
.  2013 indicates that there were, on average, 14,500 badged workers at SeaTao.


Airline Employees (employees
issuance ofAOA access,    working directly for an airline,
and either work in and      such as: pilots, ight
around the AOA in the      attendants, ticket counter, gate 
performance of their       and customer service agents,
duties; or are directly       administrative and
involved in passenger      maintenance staff)
and facility security, '
0  Passenger check-in activities,
including checkpoint       skycap and baggage check-in 
screening, passenger       and handling activities
checkin, skycap and '
0  Wheelchair attendants
baggage checkin and
handling services, AOA  o  AOAperimeter control
perimeter control or     6  Aircraft ground handling
similar activities           including aircraft catering, 
cleaning, fueling, load
balancing, marshaiing,
dispatching, maintenance", and
aircraft security

COMNHSSION AGENDA
Tay Yoshitani, ChiefExecutive Ofcer
June 26, 2014
Page 4 of 13


Baggage/cargo handling
Ground support equipment
maintenance
Fixed Base Operator (FBO)
employees
International passenger
services
Concessions  Employees of companies Dining and Retail         2,300 
conducting business on
Rental cars               (not all
Airport property and                             employees in
paying a concessions fee    Parkingoperators on Port
category have
to the Airport            property
badges (e.g.
Miscellaneous passenger     rental car
services                 facility)
Fli htkitchen emloyees
Government Employees of federal and   TransportatiOn Security     1,750
state goVernment         Administration (TSA)
agencies               passenger security checkpoint
screeners, baggage screeners,
Customs and Border Protection
(CBP) immigrations, Customs,
agriculturalinspectors, Federal
Aviation Administration
(FAA) air trafc controllers,
facilities and equipment
technicians, USDA sh and
Wildlife biologists, FBI, etc.
Port of Direct employees of the    Operations, Fire, Police,     1,100
Seattle      Port ofSeattle           Maintenance, Planning, Project
Employees                   Management, Finance, etc.
Port of'     Employees who Work at     Port operated passenger      1,450
Seattle      the Airport for           lounges
Contractors  companies under direct   .  Janitorial
contract with the Port of
Lost and Found
Seattle
Guard services
Onsite consultants
Blevator/escalator maintenance
Ramp Tower

QQMMISSIGN AGENDA:
Tay Yoshitani, Chief Executive Ofcer-
June 26, 2014
Page 5 of 13
' '                    ":Deumar




























V Pest control
Rental Car Curbside Assistants
Miscellaneous employers    Airline operated passenger    1,700
lounges               (not all
Ground transportation       employees in
coordinators for taxis/limos    category have
badges (e.g.,
Door to door shuttle drivers
shuttle drivers)
and coordinators

For more than six months, the Port has been reviewing the work environment for all employees
at SeaTao. The table below illustrates the types of information and source or collection methods
used in this research.

Information                Source or Collection Method
.
Airport employer compensation, hiring, and    Intelviews with Airport employers
workforce develOpment/training
Job openings through Port Jobs (two years)    Port Iobs database
Number" ofAinort badges by company      Review ofWinbadge credential database
Contract service provider wage and benet    Phone calls, emails, web iesearch
infonnation
Airport service agreements               Service agreements reviewand analysis
Concession wage and benet information     Tenantsurveys conducted by 3rd party
consultant
Wage levels forPort of Seattle employees     Port infonnation
Attrition/ Turnover .                  Intewiews with Airport employe1s, review of
Winbadge database, job postings through Port
Jobs

AERONAUTICAL WORKER FINDINGS
The aeronautical worker category has two segments - airline employees and aeronautical service
providers. Airline employees work directly for an airline company, Airline service providers are
contractors that provide support services to the airlines and utilize separate employment
f
agreements for their workers. Staff reSearch has resulted in two main ndings  one related to
wages and benefits and the other related to tumover and retention.

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Ofcer
June 26, 2014
Page 6 of 13

I.)     Wages and Benefits

Infomiation on wages, benets, and turnover was collected through employer interviews and
surveys, as well as publicly posted job openings and job placement data from Port Jobs. The data
collected includes information on over half of all aeronautical service provider companies, which
employ approximately 75% of all aeronautical service workers:

A. Wages: Most of the aeronautical service Workers make less than $11/hour and
many start
at the state minimum of $9.32/hour.
Ramp Agents and Fuel Agents typically start at $9.3210.88/hour, depending on
their employer and the airline they are hired to serve. Because a company might
provide services to multiple airlines, an employee could earn a different wage rate
for the same job functions when serving various airlines.

Wheelchair Agents, Cabin Cleaners, and Caterers typically start at minimum
wage, which is currently $9.32/hour. Wheelchair agents receive tips from some
passengers, estimated to range from $02/hour.

Mechanics (e.g., maintaining Ground Service Equipment) is the one position in
this occupational cluster that starts at a notably higher. ratevof $16-l7/hour.

In each of the companies surveyed, more workers fell in the bottom 25% of their
wage range than any other quartile ~ although for some companies that meant
approximately 30% are in the bottom quartile and for others 90% are in the
bottom quartile. The wage ranges for job categories and/or employers vary
signicantly. In some instances, there could be no opportunity for wage growth;
in others, the upper end of the range might be only a dollar more than the starting
wage; and some might have an upper wage rate double the starting wage.

In April of this year, Alaska Airlines, instructed its vendors to raise entrylevel
pay, moreasingstarting pay for ramp agents, aircraft fuelers and cabin cleaners to
$12/hour.  Starting pay for curbside checkin and wheelchair attendants, who
receive tips from customers, increased from the minimum to $10/hour. The pay
increases supplement the Vendor Code of Conduct that Alaska Airlines put in
place in the summer of 2013, requiring that all vendors meet dened standards of
safety, employee treatment, and legal compliance. Multiple vendor partners are
covered by the wage increases and Alaska agreed to reimburse the vendors for
their additional labor costs.

B. Benets: There is signicant variation in benets offered by employers in this cluster.
Some companies offer a hill package, some offer no benets of any kind, and some offer
only one type ofbenet (e.g., only Paid Time Off ["PTO"]).
Health insurance benefits  Some companies make no plan available to
employees; others make a plan available but pass the full cost through to
employees; and still others pass only a portion of the monthly premium cost to

COMISSION AGENDA
'  'Tay'Yoshitani, ChiefExecutive Ofcer
June 26., 2014
Page .7 of 13

employees. Company policy also varied by location in somecases. For example,
one company reported providing benets to employees in California per
requirements there, but'not in Washington; .
9  Affordable Care Act (ACA)  There is 110 data available indicating that employers
in this  cluster have changed their healtlrcare benet policies  due to
implementation . of the ACA; however, it can be expected that ACA
implementation. may cause benet changes by some employers. As the country
transitions to the ACA over the next 8-10 years, the Port will continue to analyze
the effects of this policy within its base of tenants and operators. The Port is
supportive of ACA goals but rec'ognizes its implementation will haVe intended
and unintended effects that will need to be reviewed1n the context of overall Sea
Tac operational requirements.

0  Paid Time Off (PTO) ~ Paid sick leave, paid vacation, and/0r combined PTO.
Some companies offer no PTO of any sort; at several companies, workers
accrue
56 days PTO per year (though they may need to have been in their job for
one
year before they can use them); and some companies provide 1030 days of
accrued PTOannually'depending on tenure.

0  Retirement benets Seine companies offer them and some do not. If theyudo,
they typically take the form of a 401(k) option to employees, with some providing
a match of 1-4%; others provide no match or employer contribution.

V
II.)    Turnover and Retention                 ~
.
Based on information gatheredfrom employers in interviews and surveys, as well
as from. public
job postings and airport badge data, turnover for this cluster of, aeronautical service worker
occupations is signicant, but varies by employer from approximately 25% to above 80% per
year. Almost all of the turnover is occurringin entry-level positions.

Many of the employers report hiring few, if any, supervisory positions in the last year, with
average manager tenures over 10 years in many companies. Employers reported lling almost all
of their supervisor/manager positions Via internal"promotion, as those individuals had already
shown the ability to perform and persist in the airport environment While
some did have formal
training programs for newly~hired manage1s, very few had formal training designed to assist
entry-level staff seeking to move into a lead/supervisor/manager position.

A. . Turnover and Retention  Causes
..
Based on information gathered from employer interviews, from "employers and
employees in public hearings, and from participants in Port Jobs/Airport University
programs, the primary drivers of turnover fall into the two following categories:

COR/[MISSION AGENDA
Tay Yoshitani, ChiefExecutive Ofcer
June 26, 2014
Page 8 of 13

1.   Job quality:
Wages and benets were a signicant factor in employee decisions to stay in their
position or seek other work. For example, one employer reported employees
leaving their jobs for similar positions at the Airport that paid $0.50 more per
hour. A worker reported keeping her job despite the relatively low wages because
of the low-cost/high coverage. health benets her family needed. Many students
in Airport University classes indicate they are participating in order to get'a
higher paying job.
Many of the jobs in this occupational cluster are physically demanding. Some
require working outdoors in inclement weather, and some put workers in
potentially dangerous environments on a regular basis. These physical challenges
were reported by multiple employers as a reason for employee turnover shortly
after hire, and were referenced by workers as a concern and/or something beyond
which they hoped to eventually advance.

Work schedules at the Airport also pose a signicant worker retention challenge,
as shifts may start at 3:30 am. or go beyond, midnight, for example. At these'
times, public transportation may not be readily available, childcare may be
difcult to nd and/or more expensive, and other household obligations may be
more difCttlt to fulll. As a result, some workers are unable to keep. their jobs.

In addition, the workers often face uncertainty and inconsistency regarding the '
hours worked each week and the shi(s)' assigned. This makes budget and
schedule planning quite difcult and causes some workers to seek other
employment with more consistent hours.

Limited career advancement oppmtunities:
.
Due to the high ratio of entry-level werkers to, supervisors/managers at most
companies  in this  cluster,  and  the  low rates  of turnover among
supe1yisors/managers, the number of opportunities for internal advancement
available to these entry-level workers is limited, which means that employees
wishing to advance (and increase their income) must seek positions elsewhere.
Many of the workers that seek assistance from Port Jobs are motivated by a desire
to advance in their careers, or get onto a career path that offers the opportunity for
advancement. Some of those workers. are able to take Airport University classes
and advance at the Airport, with their employer, or by moving to another
company; others seek jobs outside of the Airport.  Training and advancement
support  both that offered by employers directly and that available through
Airport University - is cmrently limited. As a result, many employees are unable
to have their training needs and desires met.

COMMISSION AGENDA
Tay Yoshitani, ChiefExecutive Officer
June 26, 2014
Page 9 of 13

B. Turnover and Retention ~ Impacts

1.  Because most tuinover is occurring in entrylevel positions, most new employees
do not have the level of experience or, familiaritywith the job~specif1c tasks/skills
needed to perfonn at a high level in their positions. All of the employers reported
at least some fonnal "onboarding" and [new-hire training process, though the
extent varied signicantly. They also reported that employees simply needed time
on the job to illy master the skills and tasks to perfonn at a high level. High
tuniover means many employees are in training and lack mastery of their jobs,
which can affect safety, security, efciency, and timeliness and customer service.

Because security is a top priority and a regulatory imperative, employee vigilance
is critical while performing duties at SeaTao Airp01t. It is the function of the on-
duty'Security Senior Access Controllers, Security Supervisor, or Manager to issue
citations to any employee that is not complying with the Security regulations
defined in the Port's Rules and Regulations. Citations include, but are not limited
to, access points being lunseCured and unattended, failure to follow the stop-and-
wait procedures, and failure to display proper identication.

Newer workers are almost twice as likely to be cited for security violations as
more experieneed workers. From 2010 through the rst quarter of 2014,. there

were 12.7 security violations cited for every 1,000 new workers (lined the
calendar year in which the violation occurred or the calendar year prior),
compared to only 7 1 security citations per 1,000 experienced workers (who had
worked at least one full calendar year prior to the year the violation occu1red)._0n
average, 14% of the people Working withlAOA badges in a given year were hired
that same year, but 24% of the security citations were issued to workers hired
during the calendar year of the violation.

Many companies reported signicant staff costs for recruiting, screening,
onboarding, and training/supervision" as a result of high turnover. One company, '
for example, reported hiring 1015 entry-level workers per week, eveiy week,
primarily to replace workers who had been hired less than three months earlier.

Multiple employers noted that reduced turnover in some California airports had
reduced their costs and increased their worker performance levels there. One
"company indicated that higher minimum wages at some of the California airports
allowed them to compete on quality and performance compared to low cost alone,
which the company thought to he not only bettei for then company but also the
airlines and ying public.

The results of this research illustrates that the Airport hosts a broad diversity of aeronautical
employers and employees, with vaiying corporate philosophies, wage structures, and benet
models. However, while there is diversity in business models and wage/benefit structure, most

COMMISSION AGENDA
'
Tay Yoshitani, ChiefExecutive Ofcer
June 26, 2014
Page 10 of 13

aeronautical service employers have one thing in common: challenges with recruiting and
retaining employees to work at the Airport. These employees have all been issued an Airport
badge, with AOA access. They work in and around the AOA, including maintaining aircraft,
operating ground service equipment, handling baggage, and operating passenger loading bridges,
all of which are critical activities that impact safety within the ADA.

BENCHMARKINGWITH OTHER AIRPORT WAGE POLICIES
Airports in general are increasingly focused on quality jobs to enhance continuity of employment,
better custOmer service and increased condence in safe and-secure airport operations. In addition
to researching the work environment for all employees at SeaTao, wage policy information was
collected 'Om multiple airports ~ with wage ordinanCe case studies conducted for airports in
Oakland, 'Los Angeles, San Francisco and St. Louis. While this research focused on airports with
wage policies for comparison'purposes, it is important to note that there are also many airports that
do not have wage policies beyond abiding by their state laws. -

The 'Los Angeles, Oakland, and St. Louis policies are termed Living Wage Ordinances (LWOs)
that apply to business done 'by the respective cities. LWOs are designed to help ensure those
doing work related to city contracts or facilities earn compensation sufcient to pay basic living
expenses. The wage rates range from $1 1 to $16 per hour depending on the city and provision of
benets by the employer (all three have two wage tiers), and all are adjusted annually by the
Consumer Price Index (CPI). Los Angeles and Oakland both also require
employers to provide
PTO, but St Louis does not

The airports in these cities each fall under city authority, and in all three
cases there are some
special applications, exemptions and/or wage and benet level differences between the cities and
the airports. In Los Angeles, the LWO covers all airport workers whose work impacted either
public perception of services or security at the airport, even if their employer was not a direct
contractor or tenant of the city. Oakland also expanded policy coverage at their airport and
seaport to businesses with 20+ employees, including tenants and concessionaires. St. Louis, in
contrast, specically limited policy coverage at the airport, exempting airlines and their
subcontractors.
.

The San Francisco International Airport policy differs from the Los Angeles, Oakland, and St.
Louis policies in that it is not an LWO per se. Since high turnover of workers at San Francisco
,
International Airport (SFO) led to increased safety and security risks, the San Francisco Airport
>
Commission adopted the Quality Standards Program ("QSP" or "Prog1'a1n?').
,                                                                                            The Program was
originally implemented in April 2000, With updates taking place in. August 2009. It applies to
airlines and their service providers operating at SF0 and employing personnel who perform
services that directly impact safety and/or security. The Program is part of the Airport's Rules
and Regulations.  The QSP elements at SFO include compensation, training, equipment
standards and hiring practices.  (The City of San Francisco also has a separate LWO for all
employers within its boundaries.) '

QQNEMLSSIGN AGENDA
Tay Yoshitani, Chief Executive Ofcer
June 26, 2014
Page 11 of 13

According to a 2001 study by the Institute for Labor and Employment at the University of
Califomia at Berkeley, the positive impacts of the P1ogiain weie felt throughOut the
.                                                                                                       ai1port.
E111p10ye1s 1ep01ted 1educed absenteeism, and expe1ie11ced fewe1 disciplinary problems and
highei mo1a1e.

Employee turnover at the airport fell signicantly While, during the same period, turnover was
increasing in the broader San Francisco Bay Area workforce.
6:   The films most affected by the'QSP reported a 37% decrease in turnover rates, compared
to an 18% reduction reported by other firms that were not covered or less affected.

a  In 1999, the FAA reported a 110% annual turnover rate among security screeners at SFO.
By 2001, the turnover rate in the three security rms that provided screening sen/ices at
SFO -- and which were covered by the QSP Program requirements -- had fallen to
approximately 25%.
0  One security fum reported a 15% turnover rate at SFO, compared to 91% at a nearby
international airport, where the same company's screeners earned considerably less per
hour.

0  Another rm that provides baggage handling, cabin cleaning and related services to a
number of airlines reported a two-thirds drop in turnover rate.

One-third of all SFO employers, together accOunting for over half of all employees, reported
improved overall job performance among workers covered by the QSP, while the rest reported
no deterioration. The results were more positive for the fnms that were most affected by the
QSP. A11 employe1s with positions directly affected by the QSP reported the same or improved
. numbers of applicants, and reported that these applicants wele more skilled.
Also, While the wages of those directly covered-by the QSP rose faster than average, wages in all
positions have improved since the program was instituted. These ndings point towards
improved job performance across the entire airpo1t.

NEED FORPORT ACTION

The analysis and benchmarking articulated above demonstrates that minimum compensation and
' training requirements will aid in attracting and retaining more highly capable employees in areas
of the airport most directly connected to the ADA. By ensuring that highly capable employees
are hired and remain employed at the airport, the Port will continue to enhance the safe and

secure operations of Sea~Tac.
.

The Port should also require companies providing services at the airport that potentially impact
safety and secun'ty to adhere to initial hiring qualications, and to provide both initial and annual
recuning training for their employees that exceed the modest levels mandated by the FAA.
Companies should be required to document and repcit on the provision of this training and
successful completion of the training by their employees. In addition to minimizing safety and

COMMISSION AGENDA
Tay Yoshitani, Chief Executive Ofcer
June 26, 2014
Page 12 ofl3

security risks, training beyond what is required by the FAA can protect the health and welfare of
"employees, the traveling public, and first responders.  Training will also open the door to
advancement opportunities, n'tlrering the Port's retention goals.

The attached Resolution sets out recommended compensation and safety and security training
standards. Pursuant to the direction of the Resolution, the Managing Director of the Airport will .
develop and promulgate regulations that every airport employer is responsible for ensuring that
its airport employees receive the following applicable training or credentials:

0  "Security Identication Area" (SIDA) orientation

6  Employment verication specialist training  (employees  who  approve or ensure
compliance with employee badging requirements)
0  Escort training

0  Safety training consistent with International Air Transport Association (IATA) Airport
Handling Manual "Airside Personnel: Responsibilities, Training and Qualications"
0 Air Operations Area safety training

0 Air Operations Area driver training

0 Ground Support Equipment training

0 \ Aircraft handling training

'
0 Human factors training

o  Bloodborne pathogen and biohazards training as appropriate for job responsibilities

In addition to the training and credential requirements stated above, Federal Aviation
Administration (FAA) Advisory Circular 150/5210-20 states "Any person expected to operate on
the Airside (AOA) should demonstrate a functional knowledge of the English language."
Therefore, Airport employers should make available to employees opportunities to access
programs designed to increase English language prociency.

"COVERED" EMPLOYEES
Among those employers with employees having job responsibilities associated with the safe and
secure operation of Seattle-Tacoma International Airport are, of course, the Port of Seattle and
various federal agencies (e.g., Customs and Border Protection, Federal Aviation Administration).
The Port of Seattle will insist that its employees and those of federal agencies execute their
responsibilities with the same focus on safe and secure Airport operations as the employees
COVered by the proposed Resolution; however, the Resolution does not cover Port and federal
employees for three reasons.
:First, the key driver of the concerns of the Port ~ employee turnover and, thus, inadequate
experience and sustained training  are not an issue with Port or federal employees. This is in

CONIMISSION AGENDA
"a."                 Tay Yoshitani, ChiefExecutive Ofcer
June 26, 2014
Page 13 of 13

significant part driven by the higher compensation and extensive training provided by these
employers.

Second, it is proposed that the Port Commission direct the Managing Director of the Airport to
amend Airport rules and regulations to effect the intent of the Resolution. The Airport rules and
regulations are designed to regulate the activities of tenants, licensees, and'others operating at the
Airport as well as, their employees. The Port Commission sets forth its policies related to
compensation for its employees in either the Salary and Benet Resolution (for non-represented
employees) or in labor agreements (for represented employees). In addition, the Commission has
delegated responsibility to the CEO to ensure adequate training, etc. for Port employees. ,
Third, the Port of Seattle, as a municipal corporation of the State of Washington, has no authority
to regulate the compensation or training requirements of federal agencies.

LEGAL-ASSESSMENT

RCW 14.08.120(2) authorizes the Port to "adopt and amend all needed rules, regulations, and
ordinances for the management, government, and use of any properties under its control.
.
.."

RCW 14.08.120(10) authorizes Airport operators like the Port to "exercise all
powers necessarily
incidental to the exercise of the general and special powers granted in this section."

RCW 14.08.120(6), in turn, authorizes the Port to "determine the charges or rental for the
use of
any properties under its control and the charges for any services or accommodations, and the
terms and conditions under which such properties may be used.
.
.."' (Emphasis added).

RCW 14.08.330 provides, in part, that: "EVery airport and other air navigation facility controlled
and operated by any municipality... shall, subject to federal and state laws, rules, and
regulations, be under the exclusive jurisdiction and control of the municipality or municipalities
controlling and operating i ." (Emphasis added).
ATTACHMENTS TO THIS MEMORANDUM
1.  Federal Aviation Administration Advisory Circular 150/5210-20, March 31, 2008

2.  International Air Transport Association Airport Handling Manual, January 2013

3.  San Francisco International Airport Quality Standards Program, Januaiy l, 2014





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