Port of Seattle Delivers on Promised Reforms

45 of 51 recommendations will be complete by August 31

The Port of Seattle submitted its SAO Annual Report Summary to Auditor Brian Sonntag today, reporting the significant progress made in implementing the recommendations contained in the December 2007 performance audit on the Port's construction management program. The organization has implemented 24 of the audit's 51 recommendations and is on track to implement 21 of the remaining recommendations by August 31, 2008. While the organization disagreed with six of the recommendations, the Port worked to find alternatives that met the underlying intent.

As required by I-900, the Port Commission authorized President John Creighton to transmit the report to the State Auditor's Office. During public session, commissioners noted their confidence in the reforms implemented thus far and in the organization's commitment to greater efficiency and transparency. “The Commission established an aggressive timeline and we have accomplished a significant amount of work in a short time,” said President Creighton. “We have more work to do, and we'll continue to work with the State Auditor's Office as we look for ways to be more efficient and transparent as we bring jobs and economic growth to the region and the state.”

The audit report contained two overarching recommendations: establishing a central procurement office and revision of Resolution 3181, which governs how the Port commission delegates its authority to the CEO and throughout the organization. Earlier this year, CEO Tay Yoshitani announced that he would go further in centralizing the Port's contracting and procurement activities, creating a Capital Development Division to be headed by a Managing Director reporting directly to the CEO. The Port's Central Procurement Office was completely functional in April, and on June 30, Nora Huey began as Central Procurement Officer. An attorney, Ms. Huey has significant experience in contracting and procurement for public agencies in Washington State . The recruitment process for Managing Director, Capital Development is nearing completion and an announcement is expected soon.

“The Port builds strategic infrastructure projects that create jobs and benefit the entire region, and consolidating those activities into one division will make us more productive and competitive,” said CEO Yoshitani. “We have worked hard implementing these reforms, and we are a stronger, better Port for it.”

Commissioners Pat Davis and Gael Tarleton agreed to lead a Commission subcommittee to reevaluate Resolution 3181 and recommend changes to the Commission on governance and delegation of authority. The committee includes citizen panelists with expertise in organizational governance and held several public meetings, soliciting input from citizens, staff members, and community leaders. Their work is nearing completion and recommendations will be presented to the full Commission on August 5th.

The Port's audit committee is overseeing work on recommendations which called for internal audits of specific Port programs. As recommended, the Port's internal audit manager now reports directly to the audit committee and the CEO – a move that Commission Vice President Lloyd Hara, chair of the committee, believes has already benefited the Port. “The audit committee is stronger and more focused than before,” said Commissioner Hara. “Our citizen member, CPA Steven Miller, brings significant expertise and experience to the table. We are continually working to improve the Port's procedures, ensuring that the work we do on behalf of King County is done correctly, accountably, and efficiently.”

Other reforms already implemented include strengthening the Port's change order policies, extending the Port's internal ethics policies to cover Port contractors and establishing a toll-free hotline where employees or others can report suspected fraud.

A full copy of the report can be found can be found on this site. Copies of the detailed exhibits supporting the report will be provided upon request. The Port Commission will host two public meetings to hear comment on the report – the first, scheduled for July 31st, will be held at the Port's Pier 69 offices. A second meeting will be held in August at a location to be determined. In addition, citizens may attend any of the Commission's regularly scheduled public meetings to offer comment or send written feedback via email at Performance-audit@portseattle.org or via the Accountability page of the Port Web site.