PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4d 
ACTION ITEM 
Date of Meeting     April 12, 2016 
DATE:    March 16, 2016 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Paula Edelstein, Sr. Director, Human Resources 
Kim DesMarais, Employment Manager 
Derek Bender, Sr. Employment Representative 
SUBJECT:  Temporary Employment Agency Services Contract 
Amount of This Request:       $ 2,500,000   Source of Funds:  Individual
Department Budgets,
Est. Total Project Cost:             $ NA 
as utilized 
Est. State and Local Taxes:           $NA   Est. Jobs Created:       160 external
to the Port 
Net Proceeds to the Port:            $NA 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to execute two contracts for
temporary employment services agencies with a contract duration of up to five years (one year
plus four one-year options) for a total amount of $2,500,000. 
SYNOPSIS 
The Port currently contracts with AppleOne Temporary Employment Services to provide agency
employees for varying periods of time. The Port entered its contract with AppleOne on July 2,
2011, and has exercised all renewal options.  To date, it has provided 159 assignments
throughout the Port, lasting from 1 to 365 days in length. The current contract is set to expire on
July 2, 2016.
The purpose of this memorandum is to obtain Commission authorization for the CEO to execute 
up to two contracts with temporary services agencies to assist the Port of Seattle in placing
temporary employees for varying periods of time throughout the organization on an as-needed
basis. The Port will utilize these services to staff areas of need for the duration of one day or up
to six months with the Port of Seattle's option to extend the assignment for up to an additional
six month period of time as outlined in Port Policy EX-10. 
Each requesting department will be responsible for payment at the agreed upon bill rate outlined
in the contract for the services requested. Departments will submit their requests for temporary
employees to Human Resources, providing information concerning the assignment details and

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 21, 2016 
Page 2 of 8 
scope of work, the knowledge, skills and/or abilities required to perform the work and the
estimated length of assignment.
The temporary agency or agencies must then be able to provide immediate personnel to fill these
requests with individuals possessing experience, knowledge, skills and/or abilities necessary to
complete the work request. 
The Port of Seattle will competitively award the temporary employment agency services
contracts, with one contract set aside for a qualified small business.  If we do not receive
sufficient qualified proposals, the Port may only award one contract. 
BACKGROUND 
The Port of Seattle is currently contracted with AppleOne Employment Agency for placing
temporary administrative, payroll and executive assistant workers at the Port. This current
contract has been in place since 2011 and has provided 159 assignment placements to date,
lasting from 1 to 365 days in length. The need for temporary agency employees varies over the
course of any given year. Under the current contract bill rates, the Port's annual cost over the
previous five years has ranged anywhere from $250,000 to $350,000 annually. The increased
amount of this new request is calculated utilizing the higher annual utilization figures and an
anticipated increase in bill rates as a result of current and future market conditions in the cities of
Seattle and SeaTac related to higher wages and benefit costs. The selection of the temporary
services agency will utilize a fair and competitive process in accordance with Central
Procurement Office policies and procedures.
PROJECT JUSTIFICATION AND DETAILS 
Project Objectives 
To provide immediate clerical and project support to departments needing temporary staffing as
a result of retirement, termination, medical leave, paid time off, or general project assistance.
The successful temporary agencies must be able to provide immediate personnel (within 24-72
hours) to fill requests with individuals possessing experience, knowledge, skills and/or abilities
necessary to complete the work requested. 
Scope of Work 
Through this contract, the Temporary Employment Agencies will provide the Port with agency
employees on an as-needed basis. Agency employees can be assigned to the Port to perform
moderately complex and integrated administrative and/or clerical duties, payroll services or
project support specific roles for varying periods of time ranging from one day to six months.
Schedule

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 21, 2016 
Page 3 of 8 
The Request for Proposals will be issued and advertised Q2 2016 with an anticipated contract in
effect no later than July 5, 2016. 
FINANCIAL IMPLICATIONS 
Budget Status and Source of Funds 
The total estimated cost of implementing and executing these contracts over a one (1) year
period with four (4) one-year options is $2,500,000.
Because this contract will be utilized on an as-needed basis and reasons for temporary services
cannot always be foreseen, the estimated value of the contract is based upon the utilization of the
current temporary agency services since its inception in 2011 with an estimated cost of living
adjustment, minimum wage increases and benefit costs for future anticipated bill rates. 
Each Port of Seattle department will be responsible for payment at the agreed upon bill rate
outlined in the contract for the services requested. Hourly rates for services are submitted by
interested agencies during the RFP process and will be evaluated during the selection process by
Human Resources. Appropriate rates are set through this contract for the various levels of
services requested and delivered. Hourly rates for services are not negotiable between temporary
agency employees and the department receiving the service. Human Resources will pay invoices
using the receiving department org and subclass information. 
Financial Analysis and Summary 
Lifecycle Cost 
July 3, 2016  July 2, 2017 - $500,000 
July 3, 2017  July 2, 2018 - $500,000 
July 3, 2018  July 2, 2019 - $500,000 
July 3, 2019  July 2, 2020 - $500,000 
July 3, 2020  July 2, 2021 - $500,000 
Assumptions: 
An increase in bill rates to reflect City of Seattle and City of Sea-Tac minimum wage
rates.
Average of 32 assignments/placements per year. 
Current usage averaged $320,000 per year. 
STRATEGIES AND OBJECTIVES 
The Port requests clerical support to perform a variety of routine to moderately difficult
administrative duties. Examples include: reception responsibilities, filing documents, preparing
mailings, performing data entry and routine calendar management. Temporary services agency
employees must be able to use Microsoft Office Suite, basic accounting principles, and general

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 21, 2016 
Page 4 of 8 
office procedures. Additional knowledge, skills and abilities may be necessary for higher level
assignments. 
This request contributes to the Port's Century Agenda strategies and Port-wide organizational
strategies by increasing workforce training, job and business opportunities within the
community. As part of the RFP process, we request that the selected agencies provide training
opportunities to their employees to maintain and refresh their knowledge, skills and abilities. 
These contracts directly support the Port-wide 2016 strategy and objective to support the Port's
mission with implementation of the port division's business plans by providing the temporary
staffing support needed to meet and execute Port business objectives. Temporary services are
requested by departments throughout the Port to fill immediate, temporary administrative and
project needs as a result of retirement, termination, medical leave, paid time off, or general
project assistance. 
The contract creates jobs for local workers while increasing the Port's ability to meet and
execute business objectives. This directly applies to workforce development efforts. 
The contract will require electronic billing invoices which will reduce the use of paper. 
One contract will be set aside for small business. The contracts will promote job opportunities
for local workers. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Hire emergency hires instead of entering into a contract with an outside agency.
For illustrative purposes only: 
Current Contract Costs/Usage: 
2011  $306,730 
2012  $330,690 
2013  $287,896 
2014  $347,343 
2015  $247,148 
Total Cost:  $1,519,807 
Assuming emergency hires cost on average 12.5% higher than temporary workers, total
monetary cost of this option would be $1,709,783. Again, this assumes the difference between
Clerical 1 and the equivalent emergency hire assignment. This does not include benefit costs. 

Cost Implications: Examples of Monetary Cost Comparison

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 21, 2016 
Page 5 of 8 
Emergency Hire Costs: 
(Emergency hire cost for one person @ $19.43/hour *520 hour (3 months full time)
+ $1067 of medical benefits per month) = $13,305 
0-3 Months     3-6 Months      6 + Months 
Clerical 1 (Grade 14 - $19.43)     $13,305        $26,610         $53,220 
Clerical 2 (Grade 16  $21.20)     $14,225        $28,450         $56,900 
Clerical 3 (Grade 18  $23.20)     $15,265        $30,530         $61,060 
Clerical 4 (Grade 20  $25.22)     $16,315        $32,630         $65,260 
Executive Asst (Grade 23   $18,770       $37,540        $75,080 
$29.94) 
Payroll Clerk ( Grade 17 - $22.14)  $14,714        $29,428         $58,856 
Equivalent clerical contract costs using the same terms: 
(Clerical 1 Cost for one person @ $17.25/hour * 520 hours (3 months full time) =
$8,970 
0-3 Months     3-6 Months      6+ Months 
Clerical 1 ($17.25)             $8,970         $17,940         $35,880 
Clerical 2 ($21.10)             $10,972        $21,944         $43,888 
Clerical 3 ($24.75)             $12,870        $25,480         $51,480 
Clerical 4 ($26.75)             $13,910        $27,820         $55,640 
Executive Assistant (~$31.50)     $16,380        $32,760         $65,520 
Payroll Clerk ($38)             $19,760        $39,520         $79,040 
Pros: 
(1)  Emergency hires are considered internal employees for competitive hiring purposes
and a potential pipeline to regular FTEs. If we have a vacancy, we may choose to
post the position internal only and select from a smaller pool of candidates. 
(2)  Emergency hires are usually paid more when hired directly with the employer
(rather than the agency taking a cut). 
(3)  Emergency hires are at-will and also may be terminated at any time without cause. 
Cons: 
(1)  The Port will need to create a candidate pool of qualified and available workers. 
(2)  The Port does not have resources to create a database of available, on-call, and
skilled short-term candidates. 
(3)  Cost for wages and benefits of emergency hires may be higher than staffing agency
bill rates.
(4)  There are challenges in sourcing high volumes of temporary staff quickly without a
database of interested candidates with appropriate skillsets.
(5)  Extremely difficult to hire on-call administrative staff with no guarantee of hours.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 21, 2016 
Page 6 of 8 
(6)  HR cannot meet department requests in a timely fashion.
(7)  Port will need to offer emergency hires medical benefits which add to the cost. 
This is not the recommended alternative. 
Alternative 2  Port issue individual purchase orders for each need and departments manage
their own need.
Cost Implications:   Monetary Costs:
Estimated monetary costs for this option exceed $1,000 per negotiated purchase
order. This assumes:
o   Total cost of Port staff time per negotiated purchase order of approximately
$1,000. 
o   This does not include port staff time required to process invoices, administer
the contracts throughout the year, and ensure work is appropriate for
temporary workers. 
Potentially up to 13 separate purchase orders throughout the Port for the same scope
of work.
o Commission, Executive, Public Affairs, Finance, Legal, Labor Relations,
Human Resources, Maritime, Aviation, Economic Development, Capital
Development, Environment & Sustainability, and Strategic Initiatives. 
Total estimated cost of this alternative is $13,000.  This assumes 13 separate
purchase orders at $1,000 each. Again, this does not include administration time
and only assumes contract negotiation costs through the central procurement office.
Pros: 
(1)  Human Resources will not administer/manage the temporary contracts.
(2)  Departments may communicate directly with their selected vendor and request
exactly what they are looking for.
Cons: 
(1)  Inefficiencies created. A department may only need a temporary worker for one day
every few years (for a special project). Staff time and resources to execute and
administer contracts would greatly exceed cost to procure the larger contract. 
(2)  HR is responsible for all recruitment activities at the port and is considered a center
of expertise for talent acquisition purposes. This would decentralize a function
under HR/talent acquisition. 
(3)  It is the responsibility of the agency to meet all city wage and benefit requirements
and all associated costs will need to be accounted for in their overall bill rates. 
(4)  Substantially more challenging to manage overall temporary contract usage and
Port-wide costs associated with a contingent workforce. 
This is not the recommended alternative. 
Alternative 3  Execute two contracts for Temporary Employment Services agencies with four
one-year renewal options.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 21, 2016 
Page 7 of 8 
Cost Implications: Monetary Cost with Assumptions: 
Current Contract Costs: 
Current usage of $350,000/year 
$350,000 x 5 years = $1.75M 
Potential New Contract Assumptions & Costs: 
AppleOne's bill rates did not change from 2011 to 2015. 
AppleOne's rates were the lowest of all submittals in 2011. 
City of Seattle minimum wages will increase to $15.00/hour; raising all other rate
levels. 
The Clerical 1 rate from 2011 to 2015 was $15.91/hour. 
Assumption is that temp agencies typically take a 35% cut of the bill rate; Clerical 1
temps make approximately $10.34/hour.
If minimum wage for Clerical 1 increases to $15.00/hour and temp agency needs to
take a 35% cut, the new Clerical 1 bill rate will be $23.20. This equates to a 45%
increase.
$1,750,000 x 45% increase = $2,537,500 
Pros: 
(1)  Provide multiple vendors with opportunities to do business with the Port of Seattle. 
(2)  Provides set aside for small business vendor. 
(3)  Supports the vision for "One-Port" by utilizing the HR department as a Center of
Expertise as the administrator for these contracts.
(4)  Supports immediate department staffing needs for clerical/administrative positions. 
(5)  Temporary services agencies are compiling the candidate pool. 
(6)  Workers are available within 24-72 hours of request. 
(7)  It is the responsibility of the agencies to meet all city wage and benefit requirements
and all associated costs will need to be accounted for in their overall bill rates. 
(8)  Temporary agency employees may be a pipeline to filling regular port positions 
without any additional sourcing fees after placement.
Cons: 
(1)  Temporary agency employees are not replacements for long term staffing needs or
in lieu of regular port positions. They are temporary stop gaps to allow departments
to ensure business continuity.
(2)  Not necessarily conducive to small business goals. In order to find an agency with
sufficient pool of workers to provide immediate assistance, the agency will need to
have a large number of contingent workers ready to assist. 
This is the recommended alternative. 

ATTACHMENTS TO THIS REQUEST

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
March 21, 2016 
Page 8 of 8 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
On the April 12, 2011 commission unanimous consent calendar, the Commission authorized the
Chief Executive Officer to execute a one-year contract for a temporary employment services
agency with four one-year renewal options to be exercised at the sole discretion of the Port of
Seattle. As a result of this authorization, the Port of Seattle entered into a contract with
Appleone Employment Services and has exercised its ability to renew for the past four years. 
The current contract with Appleone expires on July 2, 2016.