1. PORT OF TACOMA

2. Request adoption of Resolution 2010- 06, amending the Port’s Master Policy and superseding Resolution 2009-04. Master Policy Resolution No. 2010-06

3. PORT OF TACOMA The Port of Tacoma’s Master Policy Resolution contemplates an annual review of the administrative authority delegated to the Chief Executive Officer (CEO), and thereby ensures that the Master Policy reflects the Commission’s guidance. Background Master Policy Resolution No. 2010-06

4. PORT OF TACOMA Recommended revisions are intended to: Establish consistent authority levels, and Focus on the authority delegated by the Commission to the CEO. Recommended Revisions Master Policy Resolution No. 2010-06

5. PORT OF TACOMA Fifteen of the twenty-two sections are highlighted with noteworthy or substantive changes to the Master Policy. Input received from leaders throughout the organization. Recommended Revisions Master Policy Resolution No. 2010-06

6. PORT OF TACOMA Section I, Governing Real Property Rentals, is revised to: Substitute the requirement for “cash or letter of credit” to the new language, “cash or cash equivalent.” Increase the minimum rental deposit from 2 months to 3 months rental. Question – Is the 3-month rental deposit reasonable? Recommended Revisions Master Policy Resolution No. 2010-06

7. PORT OF TACOMA Section III, Governing Property Acquisitions, is revised to only require property appraisals when appropriate and necessary to establish value. Question: Should the decision to obtain property appraisals be set at a threshold based on the estimated value of the property? Recommended Revisions Master Policy Resolution No. 2010-06

8. PORT OF TACOMA Section VI, Governing Performance of Work by Port Crews, is revised to: Add references to applicable State Statutes, and Increase the CEO’s authority to approve work performed by Port crews, which is not ordinary maintenance, to $300,000. Recommended Revisions Master Policy Resolution No. 2010-06

9. PORT OF TACOMA Questions raised regarding the need to revise Small Business language in Section VII A (12) and B (5)? Existing language states, “The CEO will endeavor to use a variety of firms (including small business firms) based on the nature of the work and the expertise of the firms. The CEO will develop or oversee strategies to identify eligible firms to compete on such projects. Recommended Revisions Master Policy Resolution No. 2010-06

10. PORT OF TACOMA Proposed language for small business? The CEO or designee will endeavor to increase participation by qualified small, disadvantaged businesses in Port contracting opportunities. Program outreach may include, but not be limited to, external training, support for related initiatives and programs, and the development of strategies that provide equal opportunity in Port procurements and contracts. Results of these efforts shall be reported to the Commission annually. Recommended Revisions Master Policy Resolution No. 2010-06

11. PORT OF TACOMA Section VIII, Governing Orders and Decrees for Remediation Activities, has been added to positively affirm that Commission approval is required for environmental administrative orders, decrees, agreements and memoranda of understanding. Recommended Revisions Master Policy Resolution No. 2010-06

12. PORT OF TACOMA Section IX, Governing Grants, has been added to authorize the CEO to approve the application for grant funds where the grant award obligates the Port to provide a cash match of no more than $150,000. Recommended Revisions Master Policy Resolution No. 2010-06

13. PORT OF TACOMA Section XI, Governing Sale of Personal Property, has been revised to allow Port officials and employees to purchase surplus personal property when the sale is managed by an outside third party. Recommended Revisions Master Policy Resolution No. 2010-06

14. PORT OF TACOMA Section XII, Governing Adjustment and Settlement of Claims, is revised to increase the CEO’s authority to adjust or settle claims up to $150,000. Review by General Counsel is required for claim settlements in excess of $50,000. Recommended Revisions Master Policy Resolution No. 2010-06

15. PORT OF TACOMA Section XIII, Governing Disposition of Uncollectible Accounts, increases the CEO’s authority to write off any uncollectible accounts up to $50,000. Accounts in excess of $50,000 shall be reported to the Commission. Recommended Revisions Master Policy Resolution No. 2010-06

16. PORT OF TACOMA Section XV, Establishing Open Door Procedures for Certain Employees has been deleted. Section XVII, Establishing Systems of Employee Improvement has been deleted. Recommended Revisions Master Policy Resolution No. 2010-06

17. PORT OF TACOMA Section XVII, Governing Travel of Employees and Other Authorized Representatives of the Port, authorizes the CEO to establish procedures; and designates the Port’s Auditor as the one responsible for ensuring full compliance. Question: Shall the Commission follow staff travel and expense reimbursement policies? Recommended Revisions Master Policy Resolution No. 2010-06

18. PORT OF TACOMA Section XVIII, Governing Expenditures for Industrial Development, Trade Promotion and Promotional Hosting, was previously a separate resolution. The Hosting Policy is now incorporated into the Master Policy rather than requiring a separate resolution. Recommended Revisions Master Policy Resolution No. 2010-06

19. PORT OF TACOMA Add the following language to Section XVIII, Governing Hosting: In accordance with RCW, 53.36.140, Port Commissioners shall not personally make such expenditures or seek reimbursement therefor, except where specific authorization of such expenditures has been approved by the port commission. Recommended Revisions Master Policy Resolution No. 2010-06

20. PORT OF TACOMA Section XIX, Governing Port Memberships, is revised to authorize the CEO to approve increases to membership dues up to 10%. Recommended Revisions Master Policy Resolution No. 2010-06

21. PORT OF TACOMA Section XXI, Governing Human Resource Recruitment Actions, is modified to request Commission approval for the staffing headcount, instead of specific positions. Increased CEO’s authority to enter into agreements with employees to $150,000. Question: What type of agreements are covered by this delegation? Recommended Revisions Master Policy Resolution No. 2010-06

22. PORT OF TACOMA Section XXII, Governing Succession to the Authority of CEO, gives the Chief Commercial Officer authority to exercise all powers of the CEO in the CEO’s absence or disability. Recommended Revisions Master Policy Resolution No. 2010-06

23. PORT OF TACOMA Section XV, Governing Insurance Programs, authorizes the CEO to work with the Port’s designated insurance broker(s). Question: Should the CEO retain authority to modify insurance policies and report such modifications to the Commission? Additional Considerations Master Policy Resolution No. 2010-06

24. PORT OF TACOMA Request adoption of Resolution No. 2010-06, amending the Port’s Master Policy and superseding Resolution No. 2009-04. Conclusion Master Policy Resolution No. 2010-06