Item 6c Supp REVISED

ITEM NO: _____6c_Supp_____
DATE OF
MEETING: ___Sept. 17, 2009__
Review of Proposed Changes to
Resolution No. 3605
First Reading
September 17, 2009

Resolution No. 3605 Changes for Review

Raising Commission authorization levels on most
contracting from $200,000 to $300,000
Raising Commission authorization levels on purchased
goods from $200,000 to $500,000
Setting Commission authorization levels for maintenance
work at $500,000
Replacing and clarifying the term "Authorized Budget
Limits"

Resolution No. 3605 Changes for Review

Adding language for Section 7.3: Goods and Purchased
Services, to address a possible "Critical Work" situation
Adding language on approving competition waivers
Retaining legal counsel
Providing review period
Editing language for clarity

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.
Changes in RCWs by the Washington State Legislature
that affect Small Works contracting would be reviewed
and approved by Commission

Goods and Purchased Services

Gives CEO authority to procure "Goods and Purchased
Services" up to $500,000, 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 $500,000
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
$500,000
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)

Approving competition waivers

CEO authorized to approve competition waivers
consistent with applicable laws
Precedent: State laws authorize agencies to waive competition
requirements or specify brand-name products under defined
circumstances
Detailed technical nature and lack of advance warning of these
actions argues for delegation of authority to CEO
Use authority sparingly, adhere to the letter and intent of the law,
develop procedures and document such decisions thoroughly

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 three years or sooner if
Legislative changes in contracting practices or
related matters require Commission review."

Language changes for clarity

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

Language changes for clarity
Project Changes
Personal Services
Audit and Accounting Services
Affirmative Action

Next steps
Send draft version of Resolution No. 3605 out to stakeholders 
Century Agenda panelists, Association of General Contractors,
Municipal League
Post draft version to the Port of Seattle Internet for 30-day
comment period from September 17 to October 19, 2009
Receive Commission, Executive and stakeholder final feedback
on proposed changes to Resolution No. 3605
Make final edits to Resolution No. 3605
Return sometime in October for Second Reading/Final Passage
of the amended Resolution No. 3605

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