6a Guiding Principles

Port of Seattle 
Century Agenda: Expert Panels' 
Recommended Guiding Principles 

August 4, 2009

Table of Contents 
Introduction..Page 3 
Shared PrinciplesPage 4 
Green Port Panel Principles..Page 6 
Social Responsibility Panel Principles..Page 8 
Real Estate and Land Use Panel Principles..Page 10 
Funding Strategy Panel Principles..Page 12 
Appendix A: Implementation Chart for Green Port Principles.Page 14 











Draft Guiding Principles                                                                             2

Introduction 
The Port of Seattle began updating its strategic plan in 2008 by creating a "Century
Agenda" - a vision for carrying out the Port's mission in the first quarter of this century.
The Port plans to adopt the Century Agenda in time for the 2011 celebration of the port's
centennial. 
The goal of the Century Agenda is to refresh the Port's strategic plan, using a four-year
process that builds on the accomplishments of the past century while looking toward the
emerging challenges of this century. This four-year process is not moving ahead as
quickly as foreseen, due to the demands of implementing reforms generated by the SAO
Performance Audit and Resolution 3605, and employee furloughs in response to the
economic downturn. 
The Century Agenda is an opportunity to engage the broader community in helping
shape a common vision for how the Port of Seattle can best serve the public interest. It
was conceived as a collaborative planning process, open to the public, engaging Port
stakeholders, including customers, tenants, business interests, neighborhoods, partner
agencies, civic organizations, advocacy groups, King County residents, and employees. 
To develop the Century Agenda, the Port convened four expert panels of stakeholders to
inform the Port's initial thinking on some of the key emerging issues facing the Port. The
expert panels covered four areas: Green Port Strategy, Real Estate and Land Use,
Social Responsibility, and Funding Strategy. Each panel consisted of volunteer
stakeholder representatives, at least one Port Commissioner, and a senior Port
executive.
This document presents the Guiding Principles recommended by each of the four
panels, along with the supporting rationale for each recommended principle. During the
panel discussions, several recurring themes emerged that were common among all four
panels. These are presented here as Shared Principles. 
Once adopted, the Commission will start the next phase of implementing these
principles in 2010. The principles of the Century Agenda will be fully integrated into the
Port's long-term strategy by 2011, in time for the Port's centennial celebration. 






Draft Guiding Principles                                                                             3

Shared Principles 
Panelists agreed that the Port's activities should be focused on economic development
through the its core business activities, but thought that the Port's current mission
statement, Create Economic Vitality Here, could be clarified by using the following
criteria to evaluate policy and strategic direction. 
1.  The Port will be a catalyst for: 
The flow of trade and commerce 
The health of its commercial maritime, commercial fishing, cruise
business, and aviation enterprises 
The generation of economic and employment opportunities from its 
core business 
The maintenance and management of public assets to serve the long
term public interest 
Environmentally sustainable growth 
2. The Port will measure its success against economic, social and
environmental indicators.
The panel members endorsed the Port's triple bottom line policy as particularly
relevant to a public agency that enhances economic growth in the public's long-term 
interest and urged that Port programs continue to be measured in each of these
areas. 
3. The Port's policies and programs should respond to the needs of its
customers and community in a changing economy. 
Panel members recommended that the Port continue to seize emerging market
opportunities brought about by economic changes in society and the world. Given
the host of new technologies, new markets, and new products continually emerging, 
the Port needs to adapt to the changing needs of its customers and community in
order to stay true to its core mission. 

4. The Port should provide innovative leadership by adopting best
practices and partnering with others who are committed to stewarding
the health of our economy, environment, and community. 
Panel members agreed that adopting industry benchmarks and best management
practices would advance the Port's progress in achieving its triple bottom line. A
culture of excellence and innovation serves the public's interest while providing a
model for its tenants, partners, and the larger community.

Draft Guiding Principles                                                                             4

5. The Port is obligated to sustain public trust through ongoing
transparency, communication, accountability and equity. 
Panel members felt strongly that public trust and accountability are crucial to the
relationship between the Port and King County communities. They were concerned
about the low level of public awareness about Port operations, and urged the Port to
find ways to show how its core operations benefit the wider community. Better
outreach efforts to explain and promote understanding of the Port's programs and
policies were recommended, including reader-friendly public information tools that
explain how the Port's activities create economic opportunity in the region. 
















Draft Guiding Principles                                                                             5

Green Port Principles 
1.  The Port should be a model of sustainable growth in a community that
is projected to continue growing.
The Port should research best practices that are locally appropriate and identify
emerging technologies that further enable it to demonstrate environmental
leadership. 
On projects central to the Port's core mission, environmentally beneficial
technologies and best practices should be integrated into those projects as standard
operating procedure. 
Implementing new technologies and best management practices may, at times,
require the Port to exceed compliance standards. In such cases, metrics, objectives, 
and returns should be clearly understood by all parties and stakeholders. When it
would be useful for tenants to exceed standards, the Port should provide incentives
or facilitation programs. (See decision-making schematic) 
2.  The Port must allocate its funds to those environmental efforts that will
yield the greatest environmental benefit.
Science-based benchmarks and indicators should be used to evaluate potential
environmental benefits when making project and budget decisions. Project priorities
and goals should be regularly evaluated and reconsidered. 
3.  The Port should partner with tenants, regulatory authorities, local
jurisdictions, other ports, and non-governmental organizations on broad
environmental issues such as cleaning up Puget Sound or reducing
greenhouse gas emissions in King County.
On broad environmental issues, the Port should join, support, and actively engage in
coalitions and/or partnerships that enable the Port to leverage its financial and
professional resources to achieve common environmental interests.
4. The Port's environmental policies and programs should enhance the
Port's economic competitiveness. 
The Port will only have the funds it needs to exercise environmental leadership if it
generates sufficient net revenues. For this reason, the Port must remain a
competitive, job-generating organization and should not adopt policies that put it at a
competitive disadvantage. 
This approach requires that finite resources yield the greatest possible environmental
return. The Port should implement environmental technologies and practices that
increase the volume of cargo and passengers it moves while ensuring this growth is
environmentally sustainable.


Draft Guiding Principles                                                                             6

5.  The Port should provide a regular public accounting of its
environmental programs and outcomes. 
Public communications about the Port's environmental programs and their funding
sources need to be a high priority. This information will help taxpayers better
understand the Port's efforts to be a model for sustainable growth. It may well
encourage public input in environmental priority and program decision-making. The
Port's environmental initiatives should be assessed periodically to compare
accomplishments with goals and benchmarks. 
















Draft Guiding Principles                                                                             7

Social Responsibility Principles 
1.  The Port will collaborate with its employees, contractors, and business
partners to assure exemplary health and safety protection, provide 
equitable compensation, foster social justice, and maximize the ability
for people to achieve their full potential. 
The panel agreed that the Port should become a leader for best practices in human,
social, and economic rights. It should work to improve its own practices, and
encourage its partners improve their practices. The Port should provide incentives to 
advance social responsibility for its small business partners. 
The panel urged the Port to support the highest caliber of jobs possible for the
benefit of employees and the larger community. However, employment goals should
move beyond the simplistic economics of trading an hour of work for a wage, and
should help to create jobs where workers can take pride in their contribution. 
The Port should continue to pursue partnerships that create jobs and advance
human potential through apprenticeship programs, job training, community colleges, 
and the public school system. 
2.  The Port will remove barriers to participation by small and
disadvantaged businesses in its contracting processes and
requirements. 
The Port should leverage its role as a regional economic engine to encourage
entrepreneurship, making every effort to create economic opportunities for new and
small businesses. 
The Port's contracting processes need to be user-friendly to small and
disadvantaged businesses, and provide support to these businesses in
understanding the Port's contracting processes. It should assist small businesses to
develop opportunities to work with both the Port itself and its large contractors.
3.  The workforce of the Port should reflect the population diversity of King
County so that economic opportunity generated by the Port can be
accessed by all of its citizens. 
The panel had extensive discussion on the implications of this principle. Some areas
of concern included: 
Extending this principle beyond federally defined protected groups to the full
range of demographic and economic characteristics of King County.
Using this guideline to address the barriers to equal representation in job
categories currently underrepresented. 
Implementing the Port's commitment to supporting the workforce training
necessary to remove those barriers. 
Draft Guiding Principles                                                                             8

4.  The Port will be accountable to its guiding principles by setting
measurable objectives and reporting to the public in how it has
addressed any workforce and contracting disparities. 
Although most panel members thought it useful to set specific metrics to measure 
and determine disparities, some members felt less prescribed, more holistic
approach to reporting would result in a more accurate reflection of results. 
5.  The Port of should work with community partners to take a long-term
strategic look at population and labor market trends to support the 
ongoing employment pathway needs and labor requirements of the
Port's enterprises. 
Along with entry-level jobs, the Port should establish pathway programs with
community colleges and other education and training partners so employees can
realize advancement opportunities even if that opportunity is outside the Port.
Partnerships should do more than just meet the needs of the Port; they should also
serve the needs of the community. The Aviation and Maritime high schools are a
model for school partnerships that could be applied to other job sectors. 
Other tools, such as apprenticeship and pre-apprenticeship programs can support
career pathways. Small business contractors will need assistance in working within
such structures on an ongoing basis.











Draft Guiding Principles                                                                             9

Real Estate and Land Use Principles 
1.  Port-owned real estate assets serve a dynamic range of strategic
interests that include job creation, resource stewardship and regional
economic development. The Port should develop a tiered asset
management system to provide an operational framework to address
this range of interests.
As a special purpose government, the Port must steward and manage publiclyowned
assets for the benefit of the taxpayer. Panelists agree that the Port's deepwater
port, fishing industry, and airport are unique irreplaceable assets to the region.
The Port needs to place its highest priorities on advancing its maritime, fishing and
aviation activities because these functions are essential to the health of our region. 
To help manage tensions between competing investment opportunities, the Panel
proposed a tiered asset management system to weigh potentially competing
interests when making land management policy decisions. This system, illustrated in
the chart below, separates all real estate assets into three categories: 1) direct uses,
2) indirect uses, and 3) unrestricted uses. The chart below shows examples for each
category. 
Tier                                              Example 
Tier 1  DIRECT USES                    Marine Cargo Terminals 
Cruise Terminals 
Commercial Fishing Terminals 
Seattle-Tacoma International Airport 
Ancillary facilities directly supporting
commercial and maritime activities 
Tier 2  INDIRECT USES                  World Trade Center 
Eastside Rail Corridor 
Interbay properties 
Tier 3  UNRESTRICTED USES           Tsubota Steel Site 
Des Moines Creek Business Park Site 
Tyee Golf Course 

The Panel believed the Port should use its second and third tier land holdings to
foster industries of the future that could create jobs and prosperity in the region.
Establishing where the bright line falls between the various tiers will be aided by a
clear definition of the Port's core functions and mission. The Port needs to balance
its traditional focus on air and sea-related businesses with broader types of
economic activity. If it moves into other areas of business, the Port needs good
decision-making criteria to guide those changes.
2.  Real estate activities should take into account the effect of Port
operations on the affected land and discourage activities that would
threaten the ability of the Port to perform its core mission. Facilities

Draft Guiding Principles                                                                           10

central to the Port's core mission should be identified as "essential
public facilities." 
Panelists discussed at length whether the determination of compatibility should err
on the side of the Port's core mission or protect community goals. This has been
particularly problematic in the past around issues such as airport expansion, which at
times pitted local jurisdictions against Port-related development. Panelists have
been encouraged by the Port's recent efforts to engage in collaborative discussions
about airport development and community impacts. 
The Panel believes that the public would benefit from a stronger collaboration
between the Port and the City of Seattle to encourage manufacturing and industrial
growth within its designated Manufacturing and Industrial Centers, promoting further 
zoning for maritime, aviation and related industrial development. 

3.  To sustain the economic value of its holdings, the Port should invest in
existing or new infrastructure to support its core mission and the
operational requirements of its tenants. 
Panel members expressed that building infrastructure tied to primary core uses, such
as dredging or maintaining bulkheads, is the Port's direct responsibility. 
The Port's decision to invest in the cruise industry was discussed. Some panel
members felt that it drew resources away from other components of the maritime
sector. Yet the cruise industry investment has paid good financial dividends to the
larger region, assisted by technological advances that made ships faster and
overflow capacity at the Vancouver Port. 
Panel members discussed whether the Port should directly fund or develop 
transportation infrastructure. Some members said it might be appropriate to do so if
transportation infrastructure is tied to core business and trade development. Others
expressed concern that overleveraging the Port's resources into other investments
such as the viaduct replacement or I-5 capacity improvements detract from the Port's
ability to focus on core operations.
4.   The Port should seek opportunities to coordinate and engage in
partnerships with city, state and other government agencies to develop
infrastructure that advance trade and commerce. These facilities in turn
will serve the economic, social, and environmental interests of the
community. 
There are many opportunities for the Port to work closely with local municipalities in
projects of mutual benefit. These include industrial business operations that
contribute to the Port's core mission (maritime, fishing, aviation) or environmental
and economic mitigation. The Port should be making investments where a direct
community benefit can be demonstrated, especially when using the levy. 


Draft Guiding Principles                                                                           11

The panel suggested that additional dialogue is needed with cities to maximize the
benefits of collaboration to provide land uses that are mutually beneficial, such as
associated light industry, utilities, transportation and public transportation. 
The public interest has benefited from past collaboration between Washington State
ports in areas such as freight mobility and environmental managementthis spirit of
collaboration can also be applied to the use of Port-owned lands and associated
infrastructure to collectively respond to changing global markets. 

















Draft Guiding Principles                                                                           12

Funding Policy and Strategy Guiding Principles 
1.  The Port should be primarily funded through the self-sustaining
enterprises that are at the core of its mission. Revenues from the Port's 
tax levy should be used for activities that are not fully self-sustaining
and cannot be funded in another manner. These activities should
directly support the Port's core mission, provide for critical
infrastructure investments, or provide environmental mitigation that
cannot be funded through its enterprises.
Although panel members found the Port's mix of funding sources to be appropriate,
they noted that its spending could benefit from additional clarity and discipline.
Members recommend a focus on the Port's core businesses that provide financial
returns and/or those that spur economic development and jobs. 
It was deemed reasonable for the Port to expect different rates of return for the
different funding sources, and the criteria of financial return on investment may not
include full public benefits. Transportation investments are critical to moving the
region's core businesses targets  people and goods. Environmental investments
may not have a visible direct public benefit, but these investments clearly protect
Port assets. 
Large portions of the Port's activities are supported through self-sustaining revenues.
The Port's tax levy provides revenue for system-wide expenses that support the
needs of all tenants or longer-term investments that provide significant public benefit. 
Examples of appropriate investments compatible with the Port's core mission 
include: 
Capacity investments for container facilities and freight terminals 
FAST Corridor transportation projects 
Infrastructure for Intermodal terminals 
Non-project environmental mitigation 
Job training programs 
Panel members suggested the Port would be wise to consult with the public when it
considers involvement in activities that stray from its core businesses. This might
include a formal public involvement process or even a vote of the people. They also
noted that the public wants the Port to be as self-sustaining as possible. It is also
important to keep the levy predictable, rational, and consistent.

2.  The Port should demonstrate to the public that it has managed its
financial resources as a disciplined steward of the public interest,
guided by priorities set forth in its strategic plan.
Ultimately, the Port's long-term funding strategy is tied to how the public views the
organization. There is little understanding about how the Port manages its leases or
Draft Guiding Principles                                                                           13

any of the competitive issues facing the Port. The panel urged the Port to provide
meaningful, consistent public education about its competitive situation, how the Port
makes and spends money, and its contributions to the health of the economy. 
Further, they suggested that the Port also include information about both public and
private beneficiaries of Port initiatives. The Port should also report not just its
accomplishments and successes, but also its failures. 
The Port is making progress through programs such as its Port 101 series, but it may
be more effective for outreach to focus more on particular operations, such as
Seattle-Tacoma International Airport or Fisherman's Terminal. These may
encourage a higher level of interest and engagement by the public. 
3.  The Port should foster a culture of partnership and collaboration in
pursuing public and private funding partnerships for investments that
reap shared benefits to all its partners, and that no single entity can
achieve independently. 
The growing competitive environment created by major infrastructure investments in
ports at Prince Rupert and Vancouver B.C., and improvements to the Panama Canal 
increases the strategic importance of partnership and collaboration opportunities with
other ports, jurisdictions, and private entities.
Partnerships, however, take resources and commitment to be truly effective.  In
evaluating potential partnerships, the Port might be guided by criteria such as: 
Tax revenue benefit 
Return on investment 
Contribution to regional competitiveness 
Opportunities for collaborative marketing 
Northwest ports are stronger together in the global competitive market than alone. 
The current global financial situation may provide an opportunity for even more
strategic cooperation between ports in managing their operations to achieve a
greater synergy, such as the development of shared assets. Examples of shared
assets might be the development of an intermodal terminal or joint environmental
agreements, such as the Northwest Ports Clean Air Strategy. However, the Port
should be aggressive in pushing for cost-sharing for projects where other
jurisdictions reap benefits from Port investments. 





Draft Guiding Principles                                                                           14

Environmental Panel Guiding Principles 

Inventory                       Assessment                      Transparency 
What relevant                      Review BP and tech., 
Share inventory
appropriate best                                                                                              Develop proposal &
define objective,
and assessment
practices & new                                                                                             recommendations 
estimate investment 
with stakeholders
technologies exist?                   & quantify return 
& invite comment 
Yes 
Is this central to
Issue       core mission? 
No 
Does proposal require exceeding
No                 Is pursuing this issue
No                                                                                            No     a standard? 
Commission           consistent with the Port's
Evaluate joining /forming
action                        Triple Bottom Line?                                                                                                                     Yes 
coalition. 
Yes                                                                                                                Does it require
Port or tenant to
Does a coalition                                                                                          exceed
Yes 
or partnership                                                                                                   standard? 
No 
already exist? 
Does Commission                          Analysis 
believe issue is so               Evaluate
No                               critical that it                 investment return
Port:                   Tenant: 
demands unilateral            against science -                     Quantify              Develop
Can a cooperative                   leadership?                    based benchmarks                   metrics,              incentive
partnership be          No                                        & opportunity                        objectives, &          facilitation
formed?                                                       costs                              returns.              proposal 

No                                                        Will this put Port at
Proceed with                    No    competitive                  Yes 
Yes                           Commission action            disadvantage?

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