ITEM NO: ____6a_Supp_____
DATE OF
MEETING:_Nov. 3, 2009_____
Final Review of Proposed
Changes to Resolution No. 3605
Second Reading
and Final Passage
of
Resolution No. 3628
November 3, 2009

Follow-up to First Reading
Sent draft version of Resolution No. 3605 out to stakeholders 
Century Agenda panelists, Associated General Contractors,
Municipal League, League of Women Voters, Port of Seattle
major tenants and customers, and other interested parties.
Received favorable feedback from stakeholders, though little
substantive comment.
Posted draft version to the Port of Seattle Internet for extended
public comment period from September 17 to October 26,
2009.
Received Commission and Executive final feedback on
proposed changes to Resolution No. 3605.
Made final edits to Resolution No. 3605.

Resolution No. 3605 Changes for Review
Revising language on a Resolution review
period
Replacing and clarifying the term "Authorized
Budget Limits"
Requiring changes in law that affect Resolution
No. 3605 to be reviewed and approved by
Commission before implementation
Raising Commission authorization levels on
most contracting from $200,000 to $300,000

Resolution No. 3605 Changes for Review
Revising notification procedures for change
orders on contracts over $300,000
Adding new language on approving Competition
Waivers
Adding new language to Section 7.1., Personal
Services
Raising Commission authorization levels on
purchased goods from $200,000 to $300,000
Adding language for Section 7.3: Goods and
Purchased Services, to address a possible
"Critical Work" situation

Resolution No. 3605 Changes for Review
Setting Commission authorization levels for maintenance
work at $300,000
Adding language on retaining legal counsel
Editing language for clarity
Section 4.2.3.3: Project Changes
Section 4.2.3.8.: Change Orders and Section 4.4., Small Works Change
Orders.
Section 20.2.: "Best Bid" definition
Section 7.7.4.: Audit and Accounting Services
Section 16: Equal Employment Opportunity

Raising most authorization levels for
Commission approval to $300,000
$200,000 level was holdover from Resolution No. 3181,
passed in 1994
Based on the past year, relatively few projects or
contracts in the $200,000 to $300,000 range
Beneficial to have a consistent level of $300,000 for all
contracts
Dollar amount for Small Works contracts raised from
$200,000 to $300,000 during the 2009 Legislative
session

Goods and Purchased Services

Gives CEO authority to procure "Goods and Purchased
Services" up to $300,000, raised from current amount of
$200,000
Reflects periodic necessity to make major bulk
purchases of materials for the day-to-day operation of
the Port
Allows Port to buy in bulk the goods and services it
needs for day-to-day operations and provides cost-
savings

Goods and Purchased Services

Year   2007     2008   2009 (Jul)
Total Purchases   3286     3895     2894
>$200k   22      27      18
>$300k   14      17      14
>$500k   7      10      4

Authorizing maintenance
work up to $300,000
Gives CEO authority for expense maintenance work,
whether performed by Port crews or by contract, that
is not a public work or non-public work project, up to
$300,000
Provides consistency for maintenance work that can't
be considered as a capital project or does not fall
under the state statute of maintenance
No public or non-public work, including projects,
included under this section

Removal/replacement of
"within Authorized Budget Limits"

Section 1.5: Removal and replacement of "within
Authorized Budget Limits" passage. Term was a
undefined holdover from Resolution No. 3181
New Section 1.8: Grants CEO authority "in a manner
consistent with the Port's Annual Operating Budget,
Annually Approved Capital Budget and Annually
Approved Capital Improvement Plan."
Grants CEO authority to reallocate amounts and incur
variances from the Annual Operating Budget

Removal/replacement of
"within Authorized Budget Limits"
Quarterly reports to Commission on actual results
versus budgeted amounts for both revenues and
expenses
More frequently if "a material, negative variance from
the Annual Operating Budget, Annually Approved
Capital Budget or Annually Approved Capital
Improvement Plan."
When seeking project approval, staff indicates whether
project is within Annually Approved Capital Budget and
Annually Approved Capital Improvement Plan and, if
not, what is funding source

Critical Work

Adding language for Section 7.3: Goods &
Purchased Services to address a possible
"Critical Work" situation
Delegating authority to CEO to commit up to
$500,000 if Commission unavailable
Consistent with Sections 4 and 5 (public and
non-public work projects)

CEO approval for competition waivers
CEO authorized to approve competition waivers
Precedent: State laws authorize agencies to waive
competition requirements under defined circumstances
Only one source for the service or product, or
Only source for the service or product is proprietary in
nature, or
Only one source for the service or product that is
compatible with existing Port infrastructure, or required
for inter-operability, or

CEO approval for Competition Waivers

Waiver is necessary to authorize work with a
contractor or service provider who has exclusive
knowledge provided during a prior phase of the
contract or project.
Notification of all such waivers shall be provided to
the Commission prior to the proposed starting date of
the contract or purchase, and will include the exact
justification for the waiver.
Commission would still approve sole source contracts
above $300,000

Section 7.1 Personal Services
Adds and re-writes language
The POS procurement policy, in accordance with RCW
53.19.090., promotes full and open competition, transparent
procurement practices, opportunities for small businesses, and
compliance with all laws
The CEO authorized to amend service agreements if fee
increase associated with the amendment is less than or equal to
$300,000. All amendments over that amount require
Commission approval.
The Commission must be notified of any amendment or
amendments to personal service contracts prior to the proposed
starting date of service if the value of the amendment(s) exceeds
50% of the original contract.

Retention of legal counsel
Allows, but not mandates, CEO to retain counsel
for Port officers and employees without
Commission approval
Allows Commission, CEO, and other managers
and employees right to individual counsel
Not applicable to matters alleging fraud or
criminal behavior

Review period
Commission assigned an original review period
of 12 to 18 months after passage of Resolution
No subsequent review assigned
Review "within two years or sooner if Legislative
changes in contracting practices or related
matters require Commission review."

Language changes for clarity

Section 5: Non-public Work Projects
Change Orders and Small Works Change
Orders
"Best Bid" definition

Language changes for clarity
Project Changes
Audit and Accounting Services
Affirmative Action  Protected categories
broadened and renamed