Item Number:   60 Exhibit B

Date of Meeting:   July 14, 2015



MOTION
OF THE PORT OF SEATTLE COMMISSION
REGARDING QUALITY JOBS, SERVICE AND
EMPLOYMENT CONTINUITY ASSURANCEs FOR THE
AIRPORT DINING AND RETAIL PROGRAM

ADOPTED
NOVEMBER 25, 2014

TEXT OF THE MOTION

The Commission hereby reafrrns its commitment to the program principles articulated in the
Commission motion of February 14, 2012, as claried and expanded upon in the Statement in
Support of the Motion and Statement of Policy Direction below.

Also consistent with the principles described in the Statement in Support of the Motion and
Statement of Policy Direction, the Commission further directs staff to:

0  Provide the Commission with regular reporting on the nancial performance of the
Airport Dining and Retail Program ("Program") as well as on the number of employees
retained in Airport employment and the growth of such employment;

0  Establish job quality reporting requirements in new leases for Program operators similar
to other common nancial reporting requirements;

0  Utilize a combination of "prime" lessee/operators and direct leases with small, local,
and/or disadvantaged businesses when soliciting new operators as leases expire in or after
2015;
o  Incorporate quality jobs, service and employment continuity assurance expectations as
described in this motion into solicitation processes to the maximum degree possible when
recruiting and selecting restaurant, retail, duty free, and personal services operators; and
0  Incorporate into the Internal Audit plans and programs the inclusion of periodic auditing
of compliance with this motion. '

STATEMENT IN SUPPORT OF THE MOTION

The Port Commission supports the creation of business opportunities that foster economic
prosperity, entrepreneurial initiative, increased job opportunity and job security. In addition, the
Commission is committed to the creation ofjob opportunities that offer wage compensation and
other benets that allow employees to thrive and the empowerment to seize opportunities for
personal and professional growth.

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In the last decade, the Port of Seattle (the Port) has developed a model for its Airport Dining and
Retail (ADR) offering at Seattle~Tacoma International Airport (Airport) that is characterized by a
combination of "prime" lessee operators and direct leases with local, small, and disadvantaged
' operators.

This model has supported the growth of concession sales at the Airport, as well as Airport
concessions revenues, by more than 100 percent ~ as well as doubled employment  since 2003.
At the end of 2013, there were approximately 1,640 individuals employed through the program.
It is the intent of the Port of Seattle Commission to reafrm its commitment to this management
model as the best suited for the Airport and the broader community.

In its motion of February 14, 2012, the Port Commission "identied  preliminary Concessions
Program Goals as the basis for the Airport concessions program." In the past two and a half
years, staff has used these goals, and ongoing Commission feedback, as direction in developing a
new Airport Dining and Retail Master Plan. The Commission believes these goals continue to
provide excellent guidance for program implementation.

As part of the Airport Dining and Retail Master Plan, the Port has considered the issue of
workforce stability in dining and retail as the program enters several years of lease transitions.
Also in the February 2012 motion, specically with regard to employees, Commission provided
direction to: "maximize continued employment opportunities andjob securityfor qualified workers
wishing to continue working in the program in thelevent their employer does not remain an airport
lessee."

In addition, the Commission has expressed intent that Airport Dining and Retail employment
represent "quality jobs." 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.

In order to accomplish theseimportant objectives, the Port will:

1.  Incorporate the Commission's "Expectations of Employers Regarding Quality Jobs" into
Request for Proposal and Competitive Evaluation processes for awards of contracts to
restaurant, retail, duty free, and personal services operators (ADR Employers).

2.  Designate a third-party contractor to create and manage an Employment Continuity Pool.

The objective of the Employment Continuity Pool is to make employment transitions more
secure and smooth for both employers and employees. New and incumbent operators will benet
by having ready access to a pool of qualied employees for hire when needed for their
operations.

The objective of the Expectations of Employers is to encourage prospective ADR
operators/lessees to provide robust wage and benet packages as well as advancement
opportunities for their employees.

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STATEMENT or POLICY DIRECTION

As specic reafrmation of the Commission's guidance articulated in the 2012 motion, the
principles for the program redevelopment are:
I.  Encouragement of broad business participation by creation of opportunities attractive to
all types of businesses;

Use of exible competitive leasing processes to accommodate both large and small
businesses;
Creation of new opportunities for small, disadvantaged, and local businesses and the
facilitation of - such businesses'  success  in the sometimes challenging operating
environment at an airport; -

Maximized employment continuity for qualied employees;
ssh-she 'Continuation of 'street pricing' of products and services;Greater efciency and affordability in dining and retail unit build-out processes; and , _
Strengthening of a local Pacic Northwest sense ofplace.

As a part of a new dining and retail master plan, the Port also has developed a number of more
specic, ambitious goals for the program in the next decade. The Commission rmly believes
that its commitment to increased job quality can be achieved in tandem with the achievement of
these goals by 2025:

Grow sales per enplanement by at least 40 percent.
Reach and remain within the top 10 North American airports as ranked by sales per
enplanement.
Grow gross revenues to the Port by 50 percent.

Grow employment by 40 percent.

.
Grow the share of sales generated by small, disadvantaged, and/or local businesses to 40
percent. These businesses are encouraged to pursue opportunities both as prime
lessees/operators and as direct lessees.
Create an aspirational objective of increasing ACDBE gross sales to 25 percent of total
sales by exploring all means to accomplish that goal, including submitting a request to the
FAA for adoption.

Denitions

For the purposes of this Motion:

"Prime lessee/operator" means a company that operates or will operate four or more units
under one or more contracts awarded as a result of the request for proposal or competitive
evaluation processes. This number is based on the bidding process previously laid out in relation
'to the Airport Dining and Retail Master Plan redevelopment.


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"Full-time employee" means employees that work an average of 30 hours per week over
a years' time.

"Employment Continuity Pool" or "Pool" means a database of all non-management, non-
supervisory, and non-condential employees who wish to continue working in the Airport
Dining and Retail program; the Port will designate a third-party contractor to create and manage
the Pool. These employees will have been continuously employed in the dining and retail
program for 12 months or more, maintain a schedule of 16 or more hours per week, and whose
primary place of employment is at the Airport.

"Paid Time Off" or "PTO" means accrued hours of paid leave provided by an employer
for use by an employee. PTO may be provided through vacation, sick or safe leave, combined
PTO, or other plans that permit employees to accrue paid leave and then use the leave in
accordance with the employer plan. Employee must work more than 240 hours in a calendar year
'
to qualify for this benefit.

"King County Self-Sufciency Standard" approximates how much income families of
various sizes and composition need to make ends meet without public or private assistance in
King County. It is a measure of economic security that is based on real data regarding basic
living expenses for family size, composition, and location.

Solicitation and Contracting with new Operators

When soliciting operators as leases expire in or after 2015, the Port will utilize a combination of '
"prime" lessee/operators and direct leases with small, local, and/or disadvantaged businesses.
The Commission directs the Chief Executive Ofcer to incorporate employment continuity,
quality jobs, and labor organization discussion expectations into solicitation and contracting
processes to the maximum degree possible consistent with the following principles:

Employment Continuity Pool
The Commission seeks to facilitate employment continuity to the greatest degree possible for
current employees. To that aim, the Port will designate a third-party contractor to create and
manage the Pool. Current employees will automatically participate in the Pool, but will have the
option to opt out of the Pool if they do not want to participate. The Port will provide existing
employers with the requirements for the relevant documentation. The employer must submit the
documentation on behalf of all employees to the Port's designee. Returning tenants will be
allowed to continue to employ the same employees.             '

Any employee that has been dismissed for cause will be ineligible to participate in the Pool. Port
staff shall have no responsibility to mediate disputes or complaints from employees with regard
to their suitability or lack thereof for initial or continued employment as determined by any
tenant or operator.



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Expectations of Employers regarding Quality Jobs
The Commission expects employees in the Airport dining and retail program to have access to
quality jobs. For purposes of the program, through both the solicitation and contracting
processes, quality jobs include the following specic components. Each of these areas will be
separately considered and receive points through the bidding process as these expectations are
met and/or exceeded.

- Wages and Compensation: The Commission's expectation is that employers pay a living
wage rate, using the King County Self-Sufficiency Standard as a guide. Commission
further expects that employers provide benets to full-time employees; examples include
health care, pension or other retirement contributions, educational cost reimbursement, or
other workforce development opportunities. These expectations do not apply to seasonal,
temporary, or part-time employees.

0  PTO: The Commission expects employers to provide their employees with a minimum
level of PTO. It is reasonable that workers accrue at least one hour for every forty hours
worked, that they be allowed to begin to use it no later than after 180 days of
employment, that they be able to carry over a minimum of 40 hours from year to year,
and that an employee would have any accrued PTO reinstated if he or she returns to
employment after separation or transfer. Employees will not be disciplined or retaliated
against for use of accrued PTO.

0  Affordable Care Act Compliance: The Commission expects employers to provide health
insurance to their full-time employees, consistent with the requirements of the Affordable
Care Act (ACA) rather than accept the penalties of the ACA in lieu of
providing
stipulated health care benets.

Service Continuity Assurances

The Commission expects prospective prime operator respondents to requests for proposals to
document good faith discussions with labor organizations representing incumbent employees
I
regarding the mitigation of impacts on airport operations or revenue due to labor disputes, prior
to responding to such requests for proposals.

Recruitment and Selection ofNew Aigport Dining and Retail Operators/Lessees

The Chief Executive Ofcer is directed to manage the recruitment and selection of new Airport
Dining and Retail operators in or after 2015 consistent with the following direction:

0  Whether using a Request for Proposals, a Competitive Evaluation or contracting process,
the staff shall articulate the Commission's expectations regarding quality jobs, service
and employment continuity assurances, as outlined above. The Chief Executive Ofcer
and his or her delegates are authorized to translate the policy direction given in this
Motion into appropriately and necessarily specic terms for the Request for Proposal and
Competitive Evaluation process in close consultation with the Commission ofce.

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o  The criteria used for selecting a prospective operator shall include the commitment by
prospective prime operators/lessees to hire employees and by other prospective operators
to interview from the Employment Continuity Pool before considering applicants outside
such Pool, as well as a commitment to provide quality jobs to their employees. The
degree of this commitment will be evaluated and scored in the same fashion as other
expectations in dining, retail and personal services solicitations and contracts.

0  Employees from the Pool must be qualied for the position sought. Operators/lessees
shall not be required to hire or interview an employee who does not meet the minimum
qualications for available positions.

0  Hiring from the Pool would entitle employees to a 90 day trial period, under the terms
and conditions established by the operator/lessee or as required by law or other applicable
agreement.

0  The staff is further directed to ensure that the relative weighting of the criteria related to
these expectations is substantial enough to encourage prospective operators to meet these
expectations and to result in the choice of an operator committed to these expectations
through the contracting process when two or more prospective operators are otherwise
similar in their abilities and characteristics.

Reporting Requirements
On a regular basis, following the issuance, evaluation, and selection of operators pursuant to
Request for Proposal or Competitive Evaluation processes, staff shall report to the Commission
on how effectively these directives are being met and whether staff believes any adjustments to
future criteria or weighting in solicitations is appropriate to meet the Commission's strategic
direction as set forth in this Motion.

During the implementation of the ADR program, the Commission at its discretion may choose to
retain an independent consultant to advise it on the effectiveness of the program in meeting the
Commission's goals set forth in this motion, and on any additional strategies that the
Commission may consider in ensuring achievement ofthose goals.







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