The Audit meeting scheduled for 2021-01-29 at Remote

Transcript

The Audit meeting scheduled for 2021-01-29 at Remote

GOOD MORNING THIS IS COMMISSIONER STEPHANIE BOWMAN CALLING TO ORDER THE PORT OF SEATTLE AUDIT COMMITTEE MEETING TODAY IS FRIDAY JANUARY 29 TH 2,021 AND THE TIME IS 9 34 WE'RE MEETING REMOTELY TODAY VIA TEAM'S PLATFORM TO COMPLY WITH THE GOVERNOR'S SAFE START STAY HEALTHY ORDER AND IN ACCORDANCE TO PROCLAMATION 20 28 PRESENT WITH ME TODAY IS COMMITTEE MEMBER SAM CHO AND PUBLIC MEMBER CRIS KIRKE WELL THE CLERK PLEASE CALL THE ROLE TO ENSURE THAT ALL COMMITTEE MEMBERS ARE ONLINE THANK YOU COMMISSIONER BEGINNING WITH CHRISTINA GERKE I AM HERE THANK YOU COMMISSIONER TO IT THANK YOU COMMISSIONER BOMB AND WE DO HAVE A FULL COMMITTEE THIS MORNING EXCELLENT AS THIS IS A VIRTUAL MEETING WE'VE MADE SPECIAL ARRANGEMENTS TO PROVIDE FOR REMOTE PARTICIPATION FOR ALL OF OUR STAFF OUTSIDE PRESENTERS AND COMMITTEE MEMBERS ALSO PLEASE NOTE THAT ALL FOLKS COMMENTS AND QUESTIONS TODAY WILL BE TAKEN BY THE ROLL CALL METHOD AS A RESULT OF OUR VIRTUAL ENVIRONMENT TO BE EQUITABLE WE WILL ASK ALL COMMITTEE MEMBERS TO SPEAK IN TURN AND WAIT TO BE RECOGNIZED BEFORE SPEAKING AS MUCH AS POSSIBLE TO MAKE THIS MEETING MORE ACCESSIBLE TO THE PUBLIC THIS MEETING IS BEING LIVE STREAMED AND DIGITALLY RECORDED AND MAY BE VIEWED OR HURT AT ANY TIME ON THE PORTS WEBSITE AND THEN JUST A HOUSEKEEPING NOTE ITEM NUMBER FOUR GROUND TRANSPORTATION TAXICABS HAS BEEN REMOVED FROM TODAY'S AGENDA AND WILL BE RESCHEDULED SO THE FIRST ORDER OF BUSINESS TODAY IS APPROVAL OF THE MINUTES FROM THE DECEMBER 10 TH 2,020 AUDIT COMMITTEE MEETING ARE THERE ANY CORRECTIONS TO THE MINUTES ALRIGHT CARRIE NONE IS THERE A MOTION AND A SECOND TO APPROVE THE MINUTES COMMISSIONER SO TO MOVE OKAY I BELIEVE I WILL SECOND MAY SECOND MICHELLE DO WE NEED YES CHRISTINA IS NOT A VOTING MEMBER FOR THE POS I ALWAYS FORGET THAT AWKWARDNESS ALRIGHT OKAY SO IT'S BEEN MOVED AND SECONDED ALL THOSE IN FAVOR SAY AYE HI GREAT MICHELLE DO WE NEED TO ACTUALLY CALL ON THIS NO YOU CAN DO A UNANIMOUS CONSENT AND JUST NOTE FOR THE RECORD THAT THE MINISTER APPROVED GREAT THANK YOU SO THE MINUTES ARE APPROVED AS PRESENTING ALL RIGHT OUR NEXT IN MY BUSINESS IS EXTERNAL AUDITS AND THE TOPIC IS THE OFFICE OF THE WASHINGTON STATE AUDITOR ACCOUNTABILITY AUDIT FOR 2,019 THIS IS THE EXIT CONFERENCE PRESENTATION PRESENTERS PLEASE UNMUTE YOURSELF COMMITTEE MEMBERS WILL REMAIN MUTED UNTIL THE PRESENTATION IS COMPLETE AT THAT TIME I WILL CALL ON EACH OF YOU TO ASK QUESTIONS OR MAKE COMMENTS MR FERNANDEZ WE PLEASE INTRODUCE THIS ITEM AND OUR PRESENTERS THANK YOU VERY MUCH COMMISSIONER TODAY WE'RE GOING TO HAVE THE 2,019 ACCOUNTABILITY AUDIT WE'VE GOT JOKES AND THEN MADELINE SHAPE OF FROST AND MASSIVE FROST SHAPER GET THAT CORRECT AND ANGELA ANGELA FOR NEMORIN FROM THE STATE AUTOS OF 17 PERCENTING MICHELLE IF YOU COULD PULL UP THE POWERPOINT DECK THAT THEY PROVIDED AND THEN I'LL HAND IT OVER TO JOE AND MADE TO AN ANGEL TO START WITH PRESENTATION GIVE ME JUST A MOMENT HERE YOU SHOULD BE SEEING AT ANY TIME VERY QUICK AND SEE IT THANK YOU THANK YOU GLENN AS BEN SAID MY NAME IS JOSEPH AND I'M THE MANAGER HERE IN SEATTLE FOR PALATIS THAT ARE CONDUCTED STATE AUDITOR'S OFFICE IN THE CITY OF SEATTLE AND MADDIE IS THE SUPERVISOR ON THE PORTS AUDIT AND ANGELA WAS THE LEAD AUDITOR AND ONE THING TO NOTE IS THIS IS OUR PRESENTATION WE ALSO SENT YOU A PACKET INCLUDING THE PRESENTATION AND A DRAFT OF THE REPORT AND SOME MORE DETAIL RELATED TO OUR EXIT CONFERENCE INFORMATION BUT FOR THIS PURPOSE WE'RE GOING TO COVER MORE OF THE HIGHLIGHTS BUT IF YOU HAVE ANY QUESTIONS ABOUT WHAT IS IN THE PACKET PLEASE LET US KNOW AT ANY POINT AND ON THE NEXT SLIDE WE HAVE OUR STATE AUDITOR PATENT CARTHY AND THEN ALSO WANT TO KNOW MARK PROPOSE IS OUR DEPUTY DIRECTOR OF LOCAL AUDIT AND HE'S RESPONSIBLE FOR SEVERAL TEAMS IN WESTERN WASHINGTON AND THEN WE ALSO HAVE KELLY COLLINS WHO'S THE DIRECTOR OF LOCAL AUDIT AND ON THE NEXT SLIDE WE JUST TALK A LITTLE BIT ABOUT OUR OFFICE I KNOW MOST OF YOU ARE PRETTY FAMILIAR WITH WHAT WE DO THAT WE INDEPENDENTLY AUDIT GOVERNMENTS AND STATE AGENCIES ACROSS THE STATE WE'RE INDEPENDENT ORGANIZATION REPORTING TO A SEPARATE ELECTED OFFICIAL PAT MCCARTHY THAT WE DEFINITELY BELIEVE EVERYTHING WE HAVE HERE THAT WE ONE OF THE THINGS WE DO IS WE BELIEVE WE HELP PRESTRESSED AND GOVERNMENT THROUGH BEING INDEPENDENT AUGOOD ORGANIZATION AND THEN ALSO PROVIDE INDEPENDENT TRANSPARENT EXAMINATIONS THAT WE PROVIDE TO THE PUBLIC AND THEN WHEN WE DO HAVE RECOMMENDATIONS WE LOOK AT IT AS A WAY TO HELP IMPROVE EFFICIENCY AND EFFECTIVENESS OF A GOVERNMENT AND WE CAN'T LOOK AT EVERY AREA IN EVERY AUDIT BUT WE DO PROVIDE CONFIDENCE IN THOSE AREAS THAT WE LOOKED AT THAT OPERATIONS ARE IN COMPLIANCE SO ON THE NEXT SLIDE JUST HAVE A LITTLE BIT MORE SPECIFIC ON THIS AUDIT SO THE MAIN OVERVIEW IS I ALWAYS WANT TO START WITH SAYING THAT IT WAS A CLEAN AUDIT SO WE DID NOT HAVE ANY AUDIT FINDINGS FOR THIS AUDIT AND WE ALSO DIDN'T HAVE ANY MANAGEMENT LETTER ITEMS WE DID HAVE SOME RECOMMENDATION AT A LOWER LEVEL THAT WE CALL EXIT ITEMS THAT WE DON'T GO INTO IT AT THIS LEVEL BUT WE DID PROVIDE THE MANAGEMENT BUT AGAIN KEY TAKEAWAY WAS A CLEAN AUDIT THAT WE DON'T LOOK AT EVERY AREA AS I SAID BUT IN THE AREAS THAT WE DID REVIEW THAT WE DID FIND THAT THE PORT OPERATIONS APPLIED IN ALL MATERIAL RESPECTS WITH APPLICABLE STATE LAWS REGULATIONS SUPPORT ON POLICIES AND PROCEDURES AND PRIDE OUT OF CONTROLS OVER THE SAFEGUARDING OF PUBLIC RESOURCES SO THAT'S DEFINITELY A CREDIT TO FOR STAFF PORT MANAGEMENT SO DEFINITELY ALWAYS WANT TO START OFF WITH THAT AND THEN ONE THING I ALWAYS LIKE TO ADD IS ALTHOUGH THE PERIOD IS 2,019 FOR OUR ACCOUNTABILITY AUDIT WE MAY AND DID IN THIS AUDIT LOOK A LITTLE FURTHER INTO WHAT WOULD HAVE BEEN THE YEAR THAT WE CONDUCTED THE AUDI 2,020 SO WE DO LOOK INTO THINGS BEYOND THAT PERIOD WHERE WE FEEL LIKE IT MAY BE HELPFUL TO BE ABLE TO MAKE RECOMMENDATIONS OR REVIEW A NEW AREA SOONER THAN LATER SO YOU JUST WANT TO MAKE THAT NOTE WHEN WE GET INTO TO TALK ABOUT THE AREAS WE LOOKED AT SO WITH THAT CAN MOVE ON TO THE NEXT SLIDE AND THEN I'LL INTRODUCE ANGELA WHO WILL WALK THROUGH MORE DETAIL ABOUT WHAT WE DID LOOK AT IN THIS AUDIT YES THANK YOU JOE SO IN THIS SITE HERE IN ORDER FOR US TO SELECT SPECIFIC AREAS TO REVIEW WE CONDUCTED A NUMBER OF PLANNING PROCEDURES THAT INCORPORATED REVIEWING THE MEANING MINUTES OF THE GOVERNING BODY ANALYZING TRENDS AND FINANCIAL DATA THIS INCLUDES PAYROLL VENDOR INFORMATION AND CREDIT CARDS AND WE ALSO CONDUCTED RISK ASSESSMENTS WITH SEVERAL KEY STAFF AND A COMMISSIONER FROM THE INFORMATION WE GATHERED WE BRAINSTORM THE VARIOUS AUDIT AREAS THAT INDICATED POTENTIAL RISK OF NON COMPLIANCE AND AS A RESULT INCLUDED ON THIS SLIDE ARE THE AREAS THAT WE SELECTED FOR FURTHER TESTING AND IF WE GO TO THE NEXT SLIDE OKAY THANK YOU SO THE FIRST AREA WE WOULD LIKE TO DISCUSS IS PAYROLL SPECIFICALLY OVERTIME AND DOUBLE TIME WE REVIEWED THE PORTS POLICIES AND PROCEDURES OVER THIS AREA AND CONDUCTED DETAILED TESTING ON SPECIFIC TRANSACTIONS OUR AUDIT DETERMINED THE PORTS INTERNAL CONTROLS ARE WORKING EFFECTIVELY AND NO SIGNIFICANT RECOMMENDATIONS WERE IDENTIFIED WE DID HOWEVER IDENTIFY AN AREA OF OPPORTUNITY FOR THE PORT TO STRENGTHEN ITS INTERNAL CONTROLS THIS AREA IS RELATED TO TIMESHEET APPROVALS AS JOE MENTIONED WE PROVIDED MANAGEMENT WITH THE EXIT RECOMMENDATION FOR THEIR CONSIDERATION AND EXIT ITEMS ADDRESS CONTROLLED DEFICIENCIES OR NOT COMPLIANCE WITH LAWS OR REGULATIONS THAT HAVE AN INSIGNIFICANT EFFECT ON THE ENTITY WE ALSO WOULD LIKE TO KNOW EXIT ITEMS ARE NOT REFERENCED IN THE AUDIT REPORT WE WORKED WITH MANY INDIVIDUALS DURING PAYROLL AND WE'D LIKE TO THINK DWAYNE KAREN JENNY ANN AND BRENDALYN AND LISA AND THEIR STAFF FOR THEIR ASSISTANCE AND TIMELY RESPONSES WE CAN GO TO THE NEXT SLIDE THE SECOND AREA WE'D LIKE TO DISCUSS IS THE RENT REFERRAL PAYMENT PLAN DURING THE PLANNING STAGES OF OUR AUDIT WE IDENTIFIED THAT THE PORT CREATED AND IMPLEMENTED THIS PAYMENT PLAN AS A WAY TO ENSURE FINANCIAL SUPPORT TO THE LOCAL ECONOMY AND TO PROTECT THE PORTS ASSETS WE GAINED AN UNDERSTANDING OF THE PORTS PROGRAM ENSURE THE PROGRAM WAS APPROVED BY THE COMMISSIONERS AND REVIEW THE PROGRAM TO ENSURE IT COMPLIED WITH STATE LAW AND PORT POLICY WE ARE PLEASED TO REPORT OUR AUDIT DETERMINE THE PORTS AND TRAIL CONTROLS ARE WORKING EFFECTIVELY AND NO SIGNIFICANT RECOMMENDATIONS WERE IDENTIFIED IN THIS AREA WE WOULD LIKE TO HIGHLIGHT LISA LAND AND RUDY CALUSA FOR THEIR ASSISTANCE AND TIMELY RESPONSES WHILE REVIEWING THE PORTS RENT DEFERRAL PAYMENT PLANS AND THEN IN OUR NEXT SLIDE THE THIRD AREA WE WOULD LIKE TO DISCUSS OUR CREDIT CARDS WHEN REVIEWING THIS AREA WE REVIEWED THE PORTS POLICIES AND PROCEDURES GAINED AN UNDERSTANDING OF THE PORTS INTERNAL CONTROLS AND SELECTED TRANSACTIONS TO ENSURE THAT THESE TRANSACTIONS COMPLIED WITH PORT POLICIES THEY WERE SUPPORTED AND VALID OUR AUDIT DETERMINED THE PORTS INTERNAL CONTROLS ARE WORKING EFFECTIVELY AND NO SIGNIFICANT RECOMMENDATIONS WERE IDENTIFIED AND DURING THIS AREA WE APPRECIATE CARMEL AND CARRY RESPONDING TO QUESTIONS REGARDING THIS THIS AUDIT AREA TIMELY AND THEN IN OUR NEXT SLIDE OUR LAST AREA THAT WE WOULD LIKE TO DISCUSS IS FINANCIAL CONDITION WE PERFORMED A KIND OF KEY FINANCIAL INDICATORS ASSESSED ADDITIONAL NONFINANCIAL INFORMATION TO IDENTIFY POTENTIAL IMPACTS AND ANALYZE SUPPORTS RESPONSE TO COVID AND THIS INCLUDES MONITORING PERFORMED BY MANAGEMENT OUR AUDIT DETERMINED THE PORTS INTERNAL CONTROLS ARE WORKING EFFECTIVELY AND NO ISSUES NOTED IN THE PORTS FINANCIAL CONDITION OR SUSTAINABILITY AND LASTLY WE WOULD LIKE TO THANK MICHAEL TON FOR ASSISTANCE AND TIMELY RESPONSES AND STEP AS FAR AS THE AUDIT AREAS I WILL GO AHEAD AND PASS IT OFF TO MATTIE OKAY SO I HAVE A FEW OTHER ITEMS TO GO THROUGH JUST TO WRAP UP OUR PRESENTATION THE FIRST OFF WE WANTED TO BE SURE YOU'RE AWARE OF A NEW TOOL OUR OFFICE RELEASED IN 2,019 CALLED TRACKER TRACKER IS AVAILABLE THROUGH THE CLIENT PORTAL AND ALLOWS YOU TO LOOK AT PRIOR AUDIT RECOMMENDATIONS INCLUDING FINDINGS AND MANAGEMENT LETTERS AND ALSO PROVIDE STATUS UPDATES TO THE RESPONSE TO THE FINDINGS AND MANAGEMENT LETTERS WHILE YOUR STAFF CAN VIEW THE AUDIT STATUS OF THE FINDINGS AND MANAGEMENT LETTERS IT'S IMPORTANT TO NOTE THAT THE STATUS OF FINDINGS IS ALSO AVAILABLE TO THE PUBLIC AS WELL AND THEN ON THE NEXT SLIDE WE JUST WANT TO REMIND YOU THAT WE REVIEW THE WORK ABOUT THEIR AUDITORS IN THIS CASE MOSS ADAMS WHO PERFORMS THE FINANCIAL STATEMENT AND FEDERAL GRANT AUDIT DURING OUR PLANNING PROCEDURES TO SEE IF THERE'S ANY WORK WE CAN LEVERAGE OR IF THEY ARE AT IDENTIFIED ANY POTENTIAL RISKS FOR US TO CONSIDER AS WELL WE ALSO REVIEW THE WORK IN ORDER TO ENSURE WE CAN PLACE RELIANCE ON IT AND IN THIS CASE WE NOTED NO CONCERNS WITH THEIR WORK OR THEIR QUALITY OF THEIR WORK AND THEN ON THE NEXT SLIDE JUST A FEW CLOSING REMARKS AT THE ENTRANCE CONFERENCE WE DID PROVIDE ESTIMATED AUDIT COSTS AND I'M PLEASED TO REPORT THAT OUR ACTUAL AUDIT COSTS ARE IN ALIGNMENT WITH OUR ORIGINAL ESTIMATE OUR NEXT AUDIT WILL BE IN FALL 2,021 AND WILL ONCE AGAIN BE AN ACCOUNTABILITY AUDIT AND WE PROVIDED THE ESTIMATED COST OF THAT AUDIT IN THE EXIT PACKET FOR BUDGETING PURPOSES AND ON THE NEXT SLIDE WE EXPECT TO PUBLISH YOUR AUDIT REPORT IN THE NEXT ONE TO 2 WEEKS IT WILL BE PUBLISHED ON OUR WEBSITE AND IF YOU HAVEN'T ALREADY YOU CAN SIGN UP TO BE NOTIFIED ON OUR WEBSITE WHEN THAT REPORT IS RELEASED TO THE PUBLIC WHEN YOU SIGN UP FOR ALERTS YOU'LL ALSO GET EXCITING NEW NEWS ARTICLES AND RESOURCES OR OFFICE PUBLISHES WE'RE ALWAYS PUBLISHING NEW AND EXCITING RESOURCES TO HELP GOVERNMENTS WHEN WE PUBLISH THE AUDIT REPORT WE WILL ALSO SEND YOU A LINK TO AN AUDIT SURVEY WE REALLY APPRECIATE YOU TAKING THE TIME TO FILL THAT OUT AND LET US KNOW HOW WE DID DURING THE AUDIT AND WHAT WE CAN DO TO BETTER MEET YOUR NEEDS YOU CAN ALSO FORWARD THAT LINK TO ANYONE ELSE INVOLVED IN THE AUDIT PROCESS THAT YOU FEEL CAN PROVIDE FEEDBACK ON THE AUDIT AND THEN LASTLY WE DO REALLY WANT TO THANK ON THE NEXT SLIDE WE DO REALLY WANT TO THANK EVERYONE AT THE PORT THROUGHOUT THE AUDIT PROCESS I KNOW IT WAS A LITTLE BIT DIFFERENT THIS YEAR WORKING REMOTE SO WE REALLY DO APPRECIATE THE PORTS COMMUNICATION THROUGHOUT THE AUDIT PROCESS GIVEN IT WAS A VERY DIFFERENT YEAR THIS YEAR IN PARTICULAR WE WANT TO THANK DEBBIE RUDY AND GLENN AND DON KELLY THEY MET WITH US ON A WEEKLY BASIS WHERE WE TALKED ABOUT WHERE WE AT WITH THE AUDIT PROCESS AND THEY FOLLOWED UP ON A REQUEST UNNEEDED WE'D ALSO LIKE TO THANK MELANIE FOR MAKING SURE WE HAD EVERYTHING WE NEEDED TO FINISH OUR AUDIT AND THEN ONE LAST REMINDER WE DO HAVE OTHER ON THE NEXT SLIDE WE HAVE TWO TEAMS THAT ARE AVAILABLE AT OUR OFFICE AS WELL THEY'RE AVAILABLE AT NO EXTRA CHARGE THE FIRST IS OUR LOCAL GOVERNMENT SUPPORT TEAM AND THEY'RE AVAILABLE TO ASSIST IN YOUR ONLINE FILING PROCESS THEY ALSO HAVE A TECHNICAL HELP US SO YOU CAN ASK QUESTIONS AND THEN WE HAVE OUR CENTER FOR GOVERNMENT THAT IS ALWAYS LOOKING FOR WAYS TO HELP IMPROVE GOVERNMENT THEY'RE PUBLISHING NEW AND EXCITING RESOURCES EVERY DAY AND THEY ARE ALSO ABLE TO PERFORM TRAININGS INCLUDING LEAN TRAININGS AS WELL AND THESE TEAMS ARE AVAILABLE AT NO ADDITIONAL AUDIT COST AND THEN ON THE NEXT SLIDE THAT IS OUR PRESENTATION PLEASE LET US KNOW IF YOU HAVE ANY QUESTIONS BUT ONCE AGAIN WE REALLY APPRECIATE YOU BEING HERE TODAY AND TAKING THE TIME TO LISTEN TO AUDIT RESULTS EXCELLENT COMMUNITY MEMBERS PLEASE MUTE YOURSELF FOR QUESTIONS AND COMMENTS THE PRESENTERS WILL REMAIN UNMUTED A QUICK HEART PLEASE CALL THE ROLE THANK YOU BEGINNING WITH WE'LL START WITH MEMBER GERKE FOR QUESTIONS I DON'T HAVE ANY QUESTIONS THANK YOU THANK YOU MOVE INTO COMMISSIONER SO JUST TO CLARIFY ONE THING BECAUSE I'M THE NEW GUY IS THIS AUDIT DONE EVERY TWO YEARS IT LOOKS LIKE IT'S OVER TWO YEARS IS THAT NORMAL IT'S EVERY YEAR SO WE'RE A LITTLE BIT BEHIND THIS YEAR BUT WE'LL BE BACK ON SITE OR IN THE FALL TO AUDIT 20 20 OH SO THE FALL 20 21 IS FOR THE YEAR 20 20 EXACTLY WE'RE KIND OF ABOUT A YEAR BEHIND YEAH GREAT QUESTION THANK YOU COMMISSIONER TO COMMISSIONER BOMAN GREAT I DON'T HAVE ANY QUESTIONS JUST A COUPLE OF COMMENTS FIRST OF ALL MANY THANKS TO THE STATE AUDITOR'S OFFICE I'M EXCITED TO HEAR ABOUT THE TRACKING TOOL I'M SURE STAFF KNOWS ABOUT IT BUT THAT JUST SEEMS LIKE A GREAT EXTRA LEVERAGE FOR US TO BE ABLE TO MAKE SURE THAT WE KNOW WHAT'S GOING ON WITH ALL OF OUR AUDITS AND FOR THE PUBLIC MOST ESPECIALLY I GUESS I JUST ALSO WANT TO SAY CONGRATULATIONS TO OUR STAFF ALL OF OUR STAFF NOT JUST THE AUDIT COMMITTEE STAFF BUT ALSO JUST TO THE PORT I'M EXCITED TO HEAR AND LEARN THAT WE'VE HAD A CLEAN AUDIT PARTICULARLY ON THE CREDIT CARD PAYMENTS THAT'S ALWAYS A LITTLE BIT OF AN AREA OF CONCERN WITH LOCAL GOVERNMENT ESPECIALLY ONE AS LARGE AS OURS AND THEN ESPECIALLY ON THE RENT DEFERRAL PAYMENT THAT WAS JUST FOR THE AUDITOR'S OFFICE TO UNDERSTAND WE DID SPEND AN INCREDIBLE AMOUNT OF TIME LOOKING AT THAT PROGRAM BEFORE WE IMPLEMENTED IT SO THE COMMISSION WAS DEEPLY INVOLVED IT GIVES GOOD FEELINGS TO KNOW THAT WE'VE PASSED A CLEAN AUDIT ON IT IT WAS VERY WELL INTENTIONED BUT WE WANTED TO MAKE SURE THAT WE WERE VERY MUCH AWARE OF THE STATE'S PROHIBITION ON GIFT OF PUBLIC FUNDS SO THANK YOU FOR THAT ALL RIGHT WELL I GUESS WE ARE GOING TO MOVE ON TO OUR NEXT ITEM WHICH IS THE DELEGATION OH I'M SORRY EXCUSE ME WE'RE NOW ON THE OPERATIONAL AUDIT SECTION OF OUR AGENDA SO THAT'S ITEM NUMBER FIVE THE DELEGATION OF AUTHORITY THIS IS A CONTINUATION OF THE DISCUSSION FROM THE DECEMBER 10 TH 2,020 MEETING ON THIS TOPIC GLENN PLEASE PROCEED VERY GOOD MICHELLE WE'VE GOT ONE MORE DECK I WANT TO SAY THANKS TO STATE DAUGHTERS BEFORE THEY DROP OFFICES IT'S ALWAYS GREAT WORKING WITH THEM AND WE HAVE GREAT PARTNERSHIPS SO ON THE SHELF BLOW UP THE DECK YEAH GIVE ME A MINUTE HERE IT'S KIND OF LAGGING A LITTLE BIT FOR ME ANGEL JAPAN TEAM THANK YOU VERY MUCH THAT'S WRONG PROBLEM OPEN DIDN'T THANK YOU GLENN AND THANK YOU ALL AND APPRECIATE AGAIN A GREAT WORKING RELATIONSHIP OVER THE YEARS OKAY ARE YOU SEEING THAT NOW IS PULLING UP THERE WE GO WONDERFUL SO THE NEXT SLIDE PLEASE MICHELLE SO TODAY WE'RE GOING TO TALK ABOUT ITEM TWO DELEGATION AUTHORITIES COMMISSIONER BOWMAN SAID IT'S A CONTINUATION OF THE DISCUSSION WE'RE GOING TO SKIP THE TAXI CANS SO IF WE CAN MOVE TO SLIDE SEVEN MICHELLE OKAY THE DELEGATION OF AUTHORITY THIS WAS UNIQUE ON IT I'M GOING TO SPEAK A LITTLE BIT AND THEN I'M GOING TO HAND IT OFF TO DAVE SOY AND TEAM BUT ONE OF THE THINGS WE DO IN TURN A LOT IF WE LOOK FOR CONTROLS CONTROL LINE BUT WE ALSO HAVE A VERY UNIQUE SKILL SET AND THAT WE UNDERSTAND PROCESSES AND HOW THINGS WORK BECAUSE THROUGH AND ON IT YOU GOT TO CARE THOSE APART AND IDENTIFY THE CONTROLS SO WE CAN USUALLY POINT OUT INEFFICIENCIES IN THE PROCESS AND OPPORTUNITIES TO IMPROVE ON THAT WE WE PARTNERED WITH FOLKS AND STRATEGIC INITIATIVES SO THAT WHEN WE LEFT THEY COULD TAKE OVER AND AND OWN ANY CHANGES OR IMPROVEMENTS THAT NEED TO BE PUT IN PLACE WE DIDN'T JUST SURE IF WE HAVE ANY CONTROL ISSUES BUT BUT EVEN IF WE DID HAVE THOSE INDICATES A PROTIC PROCESS AND THAT WOULD BE AN EXAMPLE WHERE THEY CAN STEP IN AND HELP OUT EFFICIENCIES WOULD BE THE SAME THING AND WE'LL TALK ABOUT THAT AS WELL WE'RE ALSO VERY TRANSPARENT OUR MEETINGS WERE AVAILABLE AND OPEN TO ANYONE FROM THE PORT THAT IS CRITICAL TO THE PROCESS DAVE SO AT THE POINT OF JOHN OKAMOTO TO DEPARTMENT WITH US AS WELL AND MR OKAMOTO EXPERIENCE AND KNOWLEDGE AND JUST DISABILITY TO BENCHMARK OTHER ORGANIZATIONS WITH VERY INSIGHTFUL HE WORKS ON THE IAS AS PRIOR RECOMMENDATION AND FIREWORK HAS BEEN SIGNIFICANT FOR THE POINT SO WE WELCOMED HIS KNOWLEDGE AND IN SITE I WANT TO POINT OUT THAT THERE WERE NO INTERNAL CONTROL DEFICIENCIES NOTED AND MICHELLE NEXT SLIDE PLEASE WE DID HOWEVER HAVE AN EFFICIENCY OPPORTUNITY ONE OF THE THINGS WE NOTED IS YOU KNOW WHILE WE WERE DOING THIS THAT ALL THE EYES WERE DAUGHTER THE TEETH ACROSS MEANING EVERYTHING WAS FOLLOW EVERYTHING WE DID FOLLOW PROCEDURE FROM OUR TESTING THAT WE FOUND WE DID NOTICE THAT THERE WERE SOME INEFFICIENCIES AND PERHAPS THERE'S AN OPPORTUNITY TO INCREASE TRANSPARENCY AND YES SPEED UP SOME THINGS AN EXAMPLE COMMISSIONERS WOULD BE YOU KNOW ON DECEMBER 10 TH AT THE LAST AUDIT COMMITTEE WE PRESENTED REALLY CUTE PRESENTED MOSS ANNA'S CONTRACT RENEWAL FOR A YEAR IF IT'S 450,000 DOLLARS AND THAT IS BECAUSE OF COBIT WE HAD TO EXTEND IT FOR A YEAR SO THEY COULD CONTINUE TO DO THE EXTERNAL AUDIT AND WE GO OUT TO BID 2,021 WELL EXAMPLE THAT AT 450,000 DOLLARS THAT NEEDS TRANSPARENCY FOR SURE IT NEEDS TO GO TO THE COMMISSION THE MISSION NEEDS TO APPROVE THAT BUT WE NEED A PROCESS TO TURN THAT AROUND QUICKER IT GOT APPROVED ON JAN 26 WITH TRUTH THIS TUESDAY SO IT'S OVER A MONTH AND A HALF OR CLOSE TO A MONTH AND A HALF THAT IT TAKES BECAUSE OF OUR SLOWER PROCESSES SO THIS IS WHERE WE SAW SOMETHING THAT WERE VERY MUCH LIKE THIS THAT WAS JUST ONE EXAMPLE OF THINGS THAT TAKE A LONG TIME AND WE LOSE OUT ON OPPORTUNITIES ESPECIALLY WITH THE SPEND THAT WE'RE IN ON THE CASTLE FRONT THE MAJOR CAPITAL FRONT AN EXAM WOULD BE 98% OF ALL CONSTRUCTION SPEND HAS TO GO THROUGH THE COMMISSION WHICH WE DEFINITELY WANT THE TRANSPARENCY SOMETIMES IT'S 300,000 DOLLARS YOU KNOW YOU MIGHT HAVE SOMETHING THAT'S 50,000 100,000 THAT NEEDS A TRANSPARENCY NEEDS TO GO TO COMMISSION IT DOESN'T NEED TO BE ARBITRARILY SET 300,000 SO I'M ADVOCATING FOR TRANSPARENCY BUT I'M ALSO ADVOCATING FOR EFFICIENCIES AND AND LOOKING AT I'M JUST REVISITING ANY OPPORTUNITIES THERE WE LOOKED AT KICK COUNTY WE LOOKED AT CITY OF SEATTLE WE LOOKED AT SO TRANSIT AND WE PRESENTED IN THE LAST COMMISSION MEETING WHAT THEIR LIMITS ARE AND THEY'RE SIGNIFICANTLY HIGHER THAN OURS SO SOUND TRANSIT FOR EXAMPLE WENT BACK IN 2,018 AND REVISIT SOME ITEMS AND RAISE THEIR LIMIT UP SUBSTANTIALLY AND DAVE WILL TALK ABOUT THAT DAVE AND JOHN OKAMOTO SO WITH THAT LIKE I SAID IT WAS A CLEAN AUDIT I THINK THE CPO OFFICE AND DAVE SO KEYS TEAM AS FAR AS DOTTING THE EYES AND CROSSING THE TS TO YOU FIND JOB AND THERE WERE NO EXCEPTIONS WE JUST HAD THIS EFFICIENCY OPPORTUNITY AND WE FIGURED THIS WOULD BE A GOOD FORUM TO PRESENT IT TO YOU COMMISSIONERS TO BOTH COMMISSIONER EVOLVEMENT COMMISSIONER CHO AND CHRISTINE HAVE DORKING AND WITH THAT DAVE SOCI IT'S ALL YOURS NEXT SLIDE PLEASE MICHELLE AND JOHN OKEMO OVER DAVE HOWEVER YOU WANT TO SPEAK FOR JOHN YOU BET GOOD MORNING COMMISSIONERS IF JOHN IS ONLINE I'D LIKE TO FIRST TURN OVER TO JOHN FOR HIS INTRODUCTORY REMARKS AND THEN MAYBE COME BACK TO HIM AT THE END WE ONLY HAVE A SLIDE DECK OF ABOUT SIX SLIDES SO I THINK WE CAN MOVE THROUGH THIS PROMPTLY BUT OVER TO JOHN RIGHT NOW THANK YOU VERY MUCH DAVE AND GOOD MORNING ALL I'LL JUST RUN THROUGH THIS AGAIN THE ROLE THAT I PLAYED I WAS BROUGHT ON AS A MANAGEMENT CONSULTANT TO HAVE INDEPENDENT EYES FROM MY BACKGROUND YOU LIKE OFFICIAL SENIOR EXECUTIVE AND ALSO AS A PORT AND EXECUTIVE BACK IN EARLY 2,000 THAT HAD RESPONSIBILITY FOR ENGINEERING FUNCTIONS I WANT REAFFIRM WHAT GLENN MENTIONED THAT THE PORT HAS REALLY CREATED A CULTURE OF COMPLIANCE SINCE 2,007 I THINK THAT'S BEEN INDICATED BY THE FACT THAT THIS WAS A CLEAN AUDIT AND THERE WERE NO ADVERSE FINDINGS BUT AS GLENN NOTED THAT COMPLIANCE CAME WITH UNINTENDED CONSEQUENCES WITH SIGNIFICANT ADMINISTRATIVE INEFFICIENCIES AND OPPORTUNITY COST FOR THE COMMISSION ITSELF THAT FINDING WAS REAFFIRMED IN SOME EARLIER WORK BY THE EXECUTIVE REVIEW PANEL THAT WAS CHARGED BY EXECUTIVE DIRECTOR METRIC TO LOOK AT THE PORTS READINESS TO TAKE ON A MORE COMPLEX LARGER CAPITAL PROGRAM THAT FINDING WAS ALSO CONFIRMED IN SOME WORK BY AN OUTSIDE CONSULTANT IN MAY OF 2,008 KPMG FOUND THE SAME INEFFICIENCIES AND MORE RECENTLY IN AN AIRPORT REVIEW OF THEIR CAPITAL PROGRAM BY SEVERAL AIRPORTS AROUND THE COUNTRY THEY NOTED HOW RESTRICTIVE THE PORT OF SEATTLE DELEGATION OF AUTHORITY WAS COMPARED TO WHAT THEY OPERATE UNDER I THINK AS THE COMMISSION LOOKS AT OPPORTUNITIES TO LIFT OR CHANGE THE DELEGATION OF AUTHORITY WHAT I WOULD ADVISE IS THAT THE COMMISSION AND THE PORT IS A WHOLE LOOK AT THE SYSTEMS OF CONTROLS BOTH POLICY CONTROLS AS WELL AS ADMINISTRATIVE CONTROLS TO LOOK AT IT HOLISTICALLY TO SEE WHAT IS IS CURRENTLY IN PLACE AND NOT JUST FOCUS ON THE DELEGATION OF AUTHORITY ITSELF AS A MEANS TO PROVIDE CONTROLS AND LIMITS ON EXECUTIVE ACTIONS WHAT I MEAN BY THAT LOOKING HOLISTICALLY IS THAT THE CONDITION ADOPTS MANY DIFFERENT SIDEBOARDS ON ACTIONS BY THE THE ADMINISTRATION FOR EXAMPLE THE PORT COMMISSION ADOPTS LONG RANGE PLANS YOU ADOPT MASTER PLAN STRATEGIC PLANS YOU DO FINANCIAL PLANS THAT INCLUDE LEVY LIMITS FEES RATES YOU GO FURTHER AND YOU ADOPT BUT A YEAR CAPITAL PROGRAM ANNUAL BUDGETS YOU ALSO HAVE ADOPTED PROCUREMENT PROCESSES AND LIMITS SO THE 300,000 DOLLARS OR WHATEVER YOU CHOOSE AS A DELEGATION AMOUNT I WOULD SUGGEST THAT YOU REALLY LOOK AT WHAT'S THE WHOLE PICTURE ON POLICY CONTROLS THAT YOU'VE ESTABLISHED AND THAT IN ITSELF IS NOT ALL THE CONTROLS THEIR ADMINISTRATIVE CONTROLS THAT NEED TO BE LOOKED AT AS PART OF THE ARE THERE PROJECT DEVELOPMENT MANUALS ARE THERE CHANGE MANAGEMENT PROCEDURES ARE THE PROJECT DOCUMENTATION PROCEDURES IN PLACE AND I THINK ANOTHER IMPORTANT ASPECT TO TAKE A LOOK AT IS THE EXPERIENCE AND THE SKILL LEVEL OF STAFF THAT ARE RESPONSIBLE FOR THE IMPLEMENTATION OF THE CAPITAL PROGRAM SO THAT'S A LONG WAY OF SAYING THAT BOTH THE PUBLIC AND I THINK THE COMMISSION WOULD BE WELL SERVED TO UNDERSTAND THE WHOLE PICTURE OF POLICY AND ADMINISTRATIVE CONTROLS AND IN THE CONTEXT OF WHERE DOES THIS DELEGATION OF AUTHORITY REALLY FIT IN SO WITH THAT I'LL TURN IT OVER TO DAVE AND IF THERE ARE ANY QUESTIONS I'LL BE AVAILABLE TO RESPOND I THANK YOU JOHN NEXT SLIDE PLEASE BEFORE I WORK THROUGH THE SLIDE LET ME PROVIDE SOME CONTEXT AND CONTENT DISCUSSION JUST FOR THE NEXT FEW SLIDES FIRST I WANT TO THANK GLEN AND THE AUDIT TEAM BECAUSE THIS WAS A DIFFERENT AUDIT IN THE MANNER THAT WE ALL WORK TOGETHER WE DIDN'T WAIT TO SEE WHAT THE AUDIT HAD WE ALL WORK TOGETHER GOING THROUGH IT AND I THINK IT HELPED EXPLAIN AND DEMONSTRATE TO OTHER DEPARTMENTS THAT AUDIT IS A NECESSARY FUNCTION THAT CHECKS THE HEALTH OF THE ORGANIZATION AND MAKE SURE WE'RE ON TOP OF OUR GAME AND I REALLY APPRECIATED THE CULTURE THAT GOT STARTED THERE AND I EXPECT TO AS WE WORK THROUGH THIS QUESTION AND COME UP WITH OPTIONS AND RECOMMENDATIONS FOR THE COMMISSION TO RE INVOLVE AUDIT COMMITTEE AS WE GET CLOSER TO THAT SECOND I'D LIKE TO NOTE THAT IT'S PROBABLY TIME FOR US TO TAKE A LOOK AT THE AUDIT I'M SORRY TAKE A LOOK AT THE DELEGATION POLICIES AND THE REASON IS THAT IT HAD A MAJOR REVAMP BACK 13 YEARS AGO 2,008 OR SO AND MOST RECENTLY IT HAD AN ADJUSTMENT I THINK IN 2,016 SO THAT WOULD BE FIVE YEARS AGO AND A LOT OF SITE THANK YOU A LOT OF SIDE BOARDS HAVE BEEN ADDED THAT TIME MY THIRD POINT I JUST WANT TO COMMISSION IS PROBABLY AWARE OF THIS BUT THERE'S PROBABLY 20 OR MORE DIFFERENT TYPES OF ACTIONS THAT COME BEFORE THE COMMISSION AND AS WE LOOK THROUGH THIS AND HOW TO PROVIDE MORE TRANSPARENCY ADMINISTRATIVE CHECKS AND BALANCES POLICY CHECKS THINGS THAT JOHN IDENTIFIED WE MAY FIND THAT THERE MIGHT BE A LITTLE DIFFERENT THRESHOLD FOR DIFFERENT TYPES OF ACTIONS TODAY I'VE ONLY LISTED I'VE TAKES A COUPLE OF GLEN SLIDES AND ADDED A LITTLE MORE INFORMATION TO TWO OF THOSE AND I AM ONLY USING CAPITAL AUTHORIZATIONS AS AN EXAMPLE IN ADDITION TO CAPITAL THERE ARE LEASING DECISIONS THERE'S SOFTWARE RENEWALS THERE'S JANITORIAL AND OTHER CONTRACTING CONSULTANT CONTRACTING LAND LEASES THERE ARE IN BUILDING LEASES FOR ADR TENANTS AND THINGS IT'S JUST A WIDE VARIETY AND I THINK THE RISKS ARE PROBABLY DIFFERENT FOR EACH AND THE THRESHOLDS THERE MIGHT BE DIFFERENT THRESHOLDS TO REACH BUT WE WILL COME TO THE COMMISSION WITH OPTIONS FOR YOUR CONSIDERATION AND DEMONSTRATING THE RISKS AND WHAT KIND OF TRANSPARENCY AND WHAT KIND OF ADMINISTRATIVE CONTROLS OKAY THIS SLIDE ESSENTIALLY SAYS WE AGREE WITH GLENN THAT THERE MAY BE AN EFFICIENCY THE REAL QUESTION IS HOW DO WE IDENTIFY IT AND BRING THEM FORWARD WHAT WE'VE DONE IS CREATED A TEAM THAT INCLUDES BUSINESS INTELLIGENCE IT INCLUDES THE OPERATING DIVISIONS WE'VE ALREADY DONE SOME TESTING OF A SURVEY WE'RE GOING TO SEND OUT TO STAFF AND INCLUDES LEAN PROCESS IMPROVEMENT STAFF AND OF COURSE PROCUREMENT STAFF WHO HAVE THEIR FINGERS IN MANY MANY OF THE ACTIONS THAT COME FOR YOU NEXT SLIDE AGAIN THIS IS A SLIDE THAT ONLY DEALS WITH CAPITAL AND WHAT I'VE DONE IS I TOOK GLENN SLIDE AND I ADDED I WANTED TO SEE WHAT IS THE PERCENTAGE OF ITEMS THAT COME BEFORE THE COMMISSION WHAT'S THE PERCENTAGE THAT GO TO THE EXECUTIVE DIRECTOR AND WE ARE AT THE 300,000 DOLLAR LEVEL NOW IS A BLANKET FOR EVERY TYPE OF ACTION SO WE JUST PUT ON A MILLION AND THEN I WENT AS HIGH AS 10,000,000 JUST A MAGNITUDE CHANGE IT'S NOT AN INTENTION OF THAT'S WHAT WE RECOMMEND WE JUST DON'T KNOW YET WE'VE GOT WORK TO DO BUT YOU CAN SEE THAT EVEN IF WE INCREASE THE CURRENT DELEGATION LEVEL BY THREE TIMES UP TO A MILLION THE EXECUTIVE DIRECTOR WOULD BE HANDLING 5% OF ACTIONS AND THE COMMISSION WOULD STILL SEE 95% SO ANOTHER MAGNITUDE UP I WONDERED WHAT IF IT WAS 10,000,000 AND THE COMMISSION WOULD STILL SEE 69% NEED IT MIGHT THERE BE ADDED STAFF EFFICIENCY SURE BUT WHAT ABOUT THE TRANSPARENCY AND WHAT ABOUT COMMISSION OVERSIGHT OPPORTUNITY WHICH IS VERY IMPORTANT NEXT SLIDE GLENN HAD ALSO WORKED WITH JOHN OKAMOTO AND TO TAKE THEY TOOK A LOOK AT COMPARATOR AGENCIES AND THAT SAME INFORMATION IS HERE WE'VE ADDED THEIR CAPITAL BUDGET AS A NEW COLUMN AND I ADDED A COUPLE LINES IN THIS CHART WE ADDED THE UNIVERSITY OF WASHINGTON YOU CAN SEE THAT THEY HAVE A DELEGATION LEVEL OF 15,000,000 DOLLARS AND A CAPITAL BUDGET OF 3.7 WE ALSO ADDED SAN FRANCISCO INTERNATIONAL AIRPORT OF COURSE THEY HAVE A MILLION DOLLARS IS WHAT THEY DESCRIBED AND ALMOST A 5,000,000,000 DOLLAR CAPITAL LEVEL AND SO YOU CAN SEE THE PORT OF SEATTLE CAPITAL BUDGET IS PRETTY HIGH SIMILAR TO THE OTHER AGENCIES EVEN UP WITH KING COUNTY AND CT SEATTLE WHO ACTUALLY USE THEIR BUDGET AS THEIR APPROVAL PROCESS AND ONLY CHANGES THAT GO OVER AND ABOVE THEIR BUDGET COME BACK FOR CHECKS WE'LL HAVE TO FIND OUT MORE ABOUT THAT BUT WHEN WE COME UP WITH OPTIONS WE'LL ALSO BE COMPARING THOSE OPTIONS TO HOW THINGS ARE DONE IN OTHER AGENCIES TO MAKE SURE WE'RE NOT LEANING OUT TOO FAR NEXT SLIDE PLEASE I WAS HOPING THAT WE COULD HAVE A CONVERSATION TODAY ABOUT THE OBJECTIVES AND VALUES WE WANT TO FIND AN EFFICIENCY BUT ALSO AS GLEN SAID WE WANT TO BALANCE IT WITH A TRANSPARENCY AND THE POLICY GOVERNANCE THAT JOHN IDENTIFIED IN THE CHECKS AND BALANCES AS I REFER TO THEM AND I THINK THERE CAN BE A MIDDLE GROUND THAT IS A PROPER BALANCE FOR BOTH THE COMMISSION AND YOUR AVAILABLE TIME IF FOR EXAMPLE IF WE CAN KNOCK OUT TWO OR 3 ITEMS FROM EACH COMMISSION MEETING IF IT'S APPROPRIATE FOR THE ED EXECUTIVE DIRECTOR TO HANDLE THOSE AND PROVIDE INFORMATION OF COMMISSIONERS THE COMMISSION MAY FIND ANOTHER HOUR OF POLICY TIME THAT THEY COULD USE FOR COMMITTEES OR OTHERWISE WE THOUGHT ABOUT VALUES HOW TO FREE UP YOUR TIME FOR POLICY WORK AND HOW TO KEEP TRANSPARENCY CLEAR IF YOU HAVE OTHER IDEAS FOR OBJECTIVES AND VALUES AS WE DISCUSS THIS WOULD LOVE TO HEAR IT AND NEXT AND LAST SLIDE THIS CAME FORWARD IN DECEMBER TO THE AUDIT COMMITTEE AND SINCE THEN WE HAVE ESTABLISHED A TEAM WE THOUGHT ABOUT HOW TO WORK THROUGH THE QUESTIONS AND TO COME UP WITH WHATEVER THE OPTIONS ARE FOR THE COMMISSION I MENTIONED WHO'S ON OUR TEAM SO FAR THAT WE'RE SEEKING EFFICIENCY THE SECOND BULLET IS IMPORTANT TO ME THE VOICE OF THE CUSTOMERS WHEN AN EFFICIENCY EFFORT IS UNDERTAKEN IT'S IMPORTANT TO ASK OURSELVES WHO IS THE REAL CUSTOMER IS STAFF THE CUSTOMER WE DON'T BELIEVE SO IN THIS CASE WE VIEW THE COMMISSIONERS AS ELECTED OFFICIALS ARE THE CUSTOMERS WE'D LIKE TO PROVIDE TO YOU WHAT THE OPTIONS ARE IN RECOMMENDATIONS AND WHEREVER YOU SETTLE OUT WE HOPE TO FIND EFFICIENCY ON THE STAFF SIDE OF THAT SO AS I NOTE IN THE FOURTH BULLET WILL PROVIDE OPTIONS WERE THE RISKS AND TEST THE TRANSPARENCY AND EFFICIENCY AND THROUGH THE DISCUSSION WITH STAFF LEARNING WHAT THEY WILL TELL US ABOUT WHAT THEY SEE BECAUSE THERE ARE MANY STAFF ACROSS THE PORT THAT SPEND MANY HOURS AND LOTS OF ACTIONS MOVING THROUGH THE COMMISSION THAT'LL BE A VALUABLE SOURCE OF DATA SO WE'VE IDENTIFIED WITH BUSINESS INTELLIGENCE AND TESTED WE'VE GOT SURVEY READY TO GO OUT TO STAFF TO LEARN THAT AND THEN WE HOPE TO HAVE CONVERSATIONS WITH THE AUTO COMMITTEE MEMBERS AND THE FULL COMMISSION MEMBERS ABOUT WHAT YOU MIGHT BE LOOKING FOR AND WHAT WE'VE HEARD FROM STAFF AND THEN ONCE WE HEAR FROM COMMISSIONERS WE CAN FIND WHERE THE MIDDLE GROUNDS ARE AND WHERE THE AREAS OF CONCERN ARE AND THAT'S WHERE WE CAN REALLY DIAL IN AND TRY TO FIND AN OPTIMUM RECOMMENDATION WE'D BE HAPPY TO PROVIDE YOU A STATUS UPDATE AT THE END OF Q ONE WE DON'T KNOW IF WE'LL BE DONE AT THAT TIME BUT WE'D BE HAPPY TO PROVIDE YOU A STATUS AS WE GO AND AS I UNDERSTAND IT IS THE COMMISSION COMMITTEES HAVE BEEN IDENTIFIED WE WOULD BE WORKING DIRECTLY WITH YOUR COMMISSION OFFICE SO AARON PRICHARD AND MICHELLE HART WHO ARE INCORPORATED INTO THE GOVERNANCE COMMITTEE OF THE FULL COMMISSION SO I THINK THE GOVERNANCE COMMITTEE WOULD TAKE UP THIS EFFORT ALSO AND HELP SHEPHERD IT THROUGH AND THAT'S WHAT I HAVE COMMISSIONERS I WAS HOPING TO HEAR YOUR COMMENTS AND ANY QUESTIONS YOU HAVE FOR JOHN OKAMOTO OR MYSELF OR GLEN OKAY GREAT WELL COMMITTEE MEMBERS PLEASE UNMUTE YOURSELF FOR QUESTIONS AND COMMENTS THE PRESENTERS WILL REMAIN UNMUTED PER CARD PLEASE CALL THE ROLE THANK YOU WE'LL BEGIN WITH MEMBER GERKE I HAVE NO QUESTIONS OR COMMENTS THANK YOU THANK YOU MS NETO YEAH THANK YOU I HAVE A QUESTION IN THE COMMENT WHEN WE ESTABLISHED THE 300 THRESHOLD IN 2,010 WHAT WAS THE BENCHMARK OR WHAT DID WE USE TO JUSTIFY THAT DOLLAR AMOUNT DARN COMMISSIONER I ACTUALLY DON'T REMEMBER I DO REMEMBER THAT IT WAS A 200,000 DOLLARS THRESHOLD AT THE TIME AND I BELIEVE IT WAS SUBSEQUENTLY RAISED TO 300,000 DOLLARS AND IF I'LL ASK JOHN HE MAY REMEMBER BECAUSE JOHN USED TO BE THE CHIEF ADMINISTRATIVE OFFICER OF THE PORT BUT I THINK IT MAY HAVE REFLECTED THE CURRENT STATE OF WASHINGTON DELEGATION LEVEL AS A CONVENIENT MARKER JOHN DO YOU RECALL I'M HAVING ONE OF THOSE AGE APPROPRIATE MOMENTS I CAN'T REMEMBER THAT'S OKAY I WAS JUST CURIOUS SO HERE ARE A FEW OF MY INITIAL THOUGHTS AND YOU CAN TAKE IT OR LEAVE IT BUT I APPRECIATE THIS CONVERSATION ABOUT THE LOCATION AUTHORITY I THINK WHEN I FIRST TURNED THE POINT PORT THIS IS ONE OF THE FIRST THINGS SET MAY HAVE BROUGHT UP TO ME SO YOU KNOW HERE'S MY PERSPECTIVE IS THAT 10 YEARS AGO IS A LONG TIME IF I'M DOING THE MATH RIGHT IF YOU COUNT FOR 2% INFLATION OVER THE LAST 10 YEARS YOU KNOW THE DELEGATION AUTHORITY SHOULD REALLY BE AROUND THE 5,360 JUST BASED ON INFLATION SO I THINK IT'S TRUE THAT THE NUMBER MIGHT BE TOO LOW AND I APPRECIATE DAVE THE BREAKDOWN THAT YOU GAVE US OF HOW MANY ACTIONS THEY WOULD SAVE THE COMMISSIONERS IF WE WERE TO RAISE RAISE THE DOLLAR AMOUNT AND I THINK WE ALL APPRECIATE IT WHEN OUR MEETINGS ARE A LITTLE SHORTER BUT I THINK MORE IMPORTANTLY WHAT I WOULD LIKE TO KNOW IS WHAT THE TRUE OPPORTUNITY COST IS OF HAVING THIS AT 300 K VERSUS 10,000,000 DOLLARS RIGHT SO FOR INSTANCE WHEN I SEE THE OPPORTUNITY BECAUSE I AM I'M REFERRING TO WHAT IS THE TRUE LOSS IN CAPITAL FOR US AS A RESULT OF STEVE HAVING TO WAITED FOR AN AUTHORITY OF AN AUTHORIZATION RIGHT BECAUSE WE ALL KNOW THE OLD ADAGE THAT TIME IS MONEY RIGHT AND SO WHAT IS THERE A TRUE OPPORTUNITY COST IN TERMS OF THE LAG TIME BETWEEN WHEN STEVE WANTS TO MAKE A PURCHASE AND WHEN HE COMES TO COMMISSION GET IT ON THE CALENDAR IT GOES THROUGH ALL THE READINGS AND IT GETS APPROVED RIGHT I IMAGINE THERE IS A COST TO THAT RIGHT WHETHER IT'S EXECUTING ON A CONTRACT AS YOU ALLUDED TO BEFORE OR MAKING A PROCUREMENT THE LONGER WE WAIT ON CERTAIN THINGS THE HIGHER THE PRICE WILL BE AND SO I WOULD LOVE TO SEE THAT QUANTIFIED AND JUST TO SEE AS A RESULT OF THIS 300,000 THRESHOLD HERE ARE SOME EXAMPLES OF YOU KNOW WHERE STEVE HAD TO WAIT A MONTH OR TWO BECAUSE OF COMMISSION ACTION AND AS A RESULT THAT COSTS US X AMOUNT OF DOLLARS I THINK THAT WOULD BE VERY CONVINCING FOR US AS A COMMISSION TO RAISE THE BAR BECAUSE OBVIOUSLY THAT'S MONEY THAT WE COULD SAVE AND USE SOMEWHERE ELSE AND SO I THINK THAT IS MORE OPEN THAT WOULD BE MORE COMPOUNDING TO ME THAN A YEAH I MEAN QUITE FRANKLY YOU RAISED IT UP TO A MILLION DOLLARS AND IT REALLY ONLY MOVED IT TO LOOKS LIKE RIGHT SO THE VOLUME OF ACTION IS LESS IMPORTANT TO ME THAN THE TRUE OPPORTUNITY COST OF RAISING THE THRESHOLD DOES THAT MAKE SENSE YES IT DOES THANK YOU SORRY GO AHEAD AND THEN THE ONLY OTHER THING THAT I WANT TO LET'S SAY IS THAT BREAKING DOWN THE AUTHORITY BASED ON CATEGORY I THINK WOULD MAKE SENSE TO ME AND THAT WAS THE INITIAL IDEA I HAD ONE THE FIRST KINGDOM CAME TO US ABOUT RAISING THE AUTHORITY I THINK LIKE IF STEVE WANTS TO BUY HALF A MILLION DOLLARS OF HAND SANITIZER BECAUSE OF COVA 19 I DON'T THINK HE NEEDS TO COME TO US FOR THAT RIGHT THAT'S A PRETTY NO BRAINER PURCHASE RIGHT BUT IF IT'S A CHANGE ORDER ON A CAPITAL PROJECT THAT'S SOMETHING THAT WE MAY NEED THAT HE SHOULD COME BACK TO US WITH RIGHT SO IF YOU HAVE A BUCKET OF CATEGORIES THAT YOU THINK YOU KNOW THESE ARE OPERATIONAL THINGS THAT INCONSEQUENTIAL THAT SHE SHOULD HAVE THE AUTHORITY TO DO YOU KNOW YOU CAN COME UP I THINK COMING UP WITH A LIST OF THOSE AND THEN THOSE THINGS THAT YOU THINK YOU KNOW ONE SHOULD GO THROUGH THE COMMISSION I THINK THAT WOULD ALSO BE VERY HELPFUL THAT'S MY RENT THANK YOU AND THE COMMISSIONER BOWMAN MR FERNANDO HAS HIS HAND UP HAS THIS JOHN JUMP IN I'LL JUMP IN FIRST AND IF THAT'S OKAY JOHN AND THEN I'LL PASS IT BACK TO YOU JUST COMMISSION HOW TO ANSWER SOME OF YOUR YOUR QUESTIONS WE DID LOOK STUDIES THAT WERE DONE IN HOUSE THE NUMBER OF TIMES THAT MINERALS TOUCHED AND THE 20 PLUS THE AMOUNT OF HOURS THAT PEOPLE SPEND PUTTING DOCUMENTATION TOGETHER AND I THINK THAT CAN BE STREAMLINED YOU COULD TAKE THIS THE STUDY THAT WAS DONE AND FIND AN AMOUNT OF TIME THAT PEOPLE DEDICATE TOWARDS IS A DIFFERENT TIME AND COME UP WITH A COST AND THAT COULD BE SOMETHING YOU COULD SAVE LATE PAYMENTS WELL SOMETIMES THE VENDOR MIGHT SAY IF YOU PAY US WITHIN 30 DAYS DO THIS YOU MIGHT GET A DISCOUNT THOSE ARE LOSSES THAT YOU DON'T GET BECAUSE WE TAKE A MONTH OR TWO TO GET THINGS DONE AND SOMETHING WE HAVE OUR OWN INTERNAL PROCESSES THAT ARE WEEK AS WELL AND CONTRACTORS TO AN EXACTLY WOULD BE THE IF WHEN WE TAKE A MONTH OR TWO MONTHS TO GET SOMETHING APPROVED IT HAS TO GO THROUGH PROCESSES AND I'M NOT DISAGREEING THAT WE HAVE TO GO THROUGH OUR PROCESSES BUT IN THE EARLIEST STAGES WE SAW A LOT OF WORK THAT WAS BEING DONE AND IT SHOULDN'T HAVE BEEN DONE IT SHOULD HAVE STOPPED BECAUSE THEY SHOULDN'T BE DOING IT WITHOUT AN APPROVAL FROM THE FOURTH BUT NONETHELESS THEY'VE BEEN DOING IT BUT WHAT ENDED UP HAPPENING IS BECAUSE WE TAKE SO LONG WITH OUR INTERNAL PROCESSES THE SUBCONTRACTORS TAKING MONTHS TO GET THEM PAID THREE OR 4 MONTHS AND THEY WERE RESPONDING BACK TO SENDING US EMAILS AND COMPLAINTS SAYING HEY YOU KNOW I'M GOING TO GO OUT OF BUSINESS I'M A SMALL BUSINESS SO ALL OF THOSE THINGS FOR CAPITAL WE NEED TO SPEED UP OUR PROCESSING ESPECIALLY THESE BIG PROJECTS BECAUSE THEY ARE DOWNSTREAM IMPLICATIONS AND AN EXAMPLE WILL BE SOUND TRANSIT YOU TALKED ABOUT THEY RAISED CERTAIN SEGMENTS OF CAPITAL PURCHASES OR 5,000,000 DOLLARS OTHERS ARE GRATIFIED AND IF SOMETHING SMALL OR MIGHT NEED COMMISSION APPROVAL IF OTHER THINGS IT MIGHT BE 2,000,000 OR EVEN LESS AND I WILL POINT OUT THAT WHEN THEY DID THEIR REVAMP THEY DID LOOK AT RECENT TRANSPARENCY AND FINDING THE MOSS AND EXAMPLE THAT I BROUGHT UP THIS IS SOMETHING THE AUDIT COMMITTEE IMPROVED IN DECEMBER AND WE STILL HAD TO GO THROUGH THE CLASS AND WE DO ABOUT NOVEMBER 50,000 DOLLARS WE NEEDED TO DO THIS SO THE EXAMPLE WOULD BE YOU KNOW ABOUT IN NOVEMBER YOU NEED TO DO IT BY THE TIME YOU CAN ACTUALLY DO THAT IT'S END OF JANUARY FAB THAT TIME IT'S LARGE YEAH THAT ANSWERS SOME OF YOUR QUESTIONS YEAH NO I APPRECIATE THE CALL OUT ABOUT THE DOWNSTREAM EFFECTS I THINK THAT'S A VERY VALID CONCERN THAT IF THE POOR TAKES TOO LONG TAKING A DECISION IT COULD ULTIMATELY HURT SO THE WATER CUSTOMERS OR TENANTS ET CETERA SO I THINK THAT'S ALSO ALL AND YOUR POINT ABOUT I DON'T FORGET SORRY IF IT WAS DAVE GLENN COULD YOU GLEN WE WAS TALKING ABOUT THE NUMBER OF HOURS STAFF PUT INTO PUTTING TOGETHER MEMOS AND ALL THAT STUFF SO THAT THE COMMISSION CAN LOOK AT IT IN MY MIND THAT'S ALL COSTS TOO RIGHT SO I THINK THOSE ARE ALL FACTORS IN THE OPPORTUNITY COST THAT WE'D LIKE TO SEE JOHN THANK YOU VERY MUCH COMMISSIONER JOE PREVIOUSLY MENTIONED THAT EXECUTIVE DIRECTOR METRIC HAD BROUGHT BACK THE EXECUTIVE REVIEW PANEL TO ANSWER THE QUESTION IS THE PORT READY TO TAKE ON A MORE COMPLEX LARGER CAPITAL PROGRAM LOOKING DOWNSTREAM AND THAT WAS NOT EVEN LOOKING AT THE QUESTION OF WOULD IT BE APPROVED IN WHAT FORM WOULD IT BE APPROVED SO IN THAT WE DID TAKE A LOOK AT THE PORTS PERFORMANCE ON LOOKING BACKWARDS ON APPROVED CAPITAL PROGRAMS MANY OF THOSE CAPITAL PROGRAMS AS YOU REFER TO WERE IDENTIFIED AS BUSINESS NEEDS TO SUPPORT CUSTOMER DEMANDS OR PASSENGER DEMANDS ET CETERA AND IF YOU LOOK EVEN BACKWARDS YOU'LL FIND SOMETHING THAT'S NOT TOTALLY UNUSUAL BUT YOU'LL SEE UNDER PERFORMANCE IN THE DELIVERY OF THE CAPITAL PROGRAM SO LOOKING FORWARD AS THE PORT WAS FACING A MORE COMPLEX LARGER CAPITAL PROGRAM WHAT WE SAW WAS THE NEED TO EXAMINE EVERY POLICY PROCESS POLICY CONSTRAINTS EVERY ALSO ADMINISTRATIVE PROCESSES AND CONSTRAINTS TO ANSWER THE QUESTION WHAT IS NECESSARY TO REALLY DELIVER ON WHAT THE COMMISSION ADOPTS AS AS GOALS AND IN THAT AMONGST ALL THE PROCESSES THE WHOLE DELEGATION OF AUTHORITY WAS IDENTIFIED AS ONE OF MANY PROCESSES THAT NEEDED TO BE STREAMLINED OTHERS WERE LIKE THE PROCUREMENT PROCESS HOW LONG IT TAKES TO BRING ON CONSULTANTS OR PRIVATE PARTNERS ALSO AN ISSUE OF CONCERN WAS THE TURNOVER AND THE ANTICIPATED LOSS OF EXPERIENCE STAFF AND WAS THE PORT PREPARED TO RESPOND BECAUSE WE SAW IN SOME CASES THAT PROJECTS WERE DELAYED JUST BY THE MERE FACT OF BRINGING ON EXPERIENCED STAFF SO THERE ARE MANY OPPORTUNITY COSTS THAT WE HAD IDENTIFIED I WOULDN'T SAY THAT OUR WORK WENT AS FAR AS QUANTIFYING THE SPECIFICS OF WHAT THE OPPORTUNITY COST FOR THE DELEGATION OF AUTHORITY BUT IT WAS CLEAR THAT IF THE COMMISSION AND THE PORT I REALLY WANTED TO DELIVER ON ITS CAPITAL PROGRAM THAT IT NEEDED TO LOOK AT ALL PROCESSES THAT MIGHT BE IMPEDIMENTS TO A TIMELY DELIVERY OF THE CAPITAL PROGRAM COMMISSION JODY HAVE ANY OTHER QUESTIONS OKAY GREAT WELL I'VE GOT A FEW FIRST OF ALL THANK YOU SO MUCH AND JOHN IT'S GREAT TO SEE YOU AND I'M GLAD YOU'RE WELL I HAVE A COUPLE OF QUESTIONS AND THEN A COUPLE OF COMMENTS SO MY FIRST QUESTION IS CAN YOU REMIND ME HOW THIS GOT PUT ON THE AUDIT COMMITTEE AGENDA I DON'T RECALL IT GLENN DID THAT COME FROM COMMISSIONERS OR DID IT COME FROM STAFF COMMISSIONER COCKINS ASKED FOR THIS TO BE CONTINUED ON RIGHT BUT INITIALLY THIS PROCESS OF LOOKING AT THE DELEGATION OF AUTHORITY SO IT WAS COMMISSIONER CALL CONSIDERED ASKED FOR IT WELL I THINK THE WAY WE'VE DONE THE AUDIT WE'RE PRESENTING IT IN THE DECEMBER 10 TH AUDIT COMMITTEE MEETING WE DID PRESENT THE CLEAN AUDIT AND THE EFFICIENCY ISSUE THAT IS PART OF THE AUDIT PRESENTATION AND THEN COMMISSIONER CLOCK AND ASK FOR THE CARRY ON DISCUSSION CORRECT NO I UNDERSTAND I REMEMBER IT IN THE DECEMBER MEETING I'M JUST WONDERING WHAT WAS THE IMPETUS FOR BRINGING THIS CONVERSATION FORWARD THIS AUDIT IN PARTICULAR WAS IT FROM THE COMMISSIONERS OR WAS IT FROM THE STAFF THE DELEGATION OF AUTHORITY ON IT AS WHOLE YES THAT WAS THE DELEGATION OF AUTHORITY ON IT YOU KNOW WHEN WE PICK THAT OUT IF I'M RECALLING NO IT WAS DEFINITELY NOT FROM STAFF IT WAS FROM IT WAS SOMETHING THAT WE THOUGHT WAS POTENTIALLY COULD BE A RISK I BELIEVE IT CAME FROM THE COMMISSION AND THEN YOU WANTED TO COMMENT ON THAT IN SHAPE I SAW YOUR HANDS UP YEAH HI DAN HI THERE CAN YOU HEAR ME OKAY WE CAN OKAY SO COMMISSIONER ARE YOU ASKING HOW IT GOT ON THE AUDIT PLAN LAST YEAR YEAH WHO BROUGHT IT FORWARD WAS IT MR CALKINS HAD ASKED FOR IT WELL WE GO THROUGH SO I'M GOING TO GIVE YOU A LONG ANSWER WE GO THROUGH A RISK ASSESSMENT PROCESS AND WE HAD DISCUSSIONS WITH SOME EXECUTIVE MANAGEMENT THAT HAD REQUESTED IT AND THEN I BELIEVE AS GLENN HAD MENTIONED THAT I THINK THERE WAS SOME COMMISSION INTEREST IN IT AS WELL OKAY AND THAT'S WHY AND SO JUST TO THE SAM I APOLOGIZE OR COMMISSIONER CLOCK IN IT EXCUSE ME WHEN YOU SAID IT WAS THE FIRST MEETING THAT YOU HAD ON THE COMMISSION IT WAS ACTUALLY THIS SUBJECT WAS THE VERY FIRST MEETING I HAD AS A COMMISSIONER ON MAY SIX TO 13 WAS ABOUT THE DELEGATION OF AUTHORITY AND DAVID WAS WITH YOU AND RALPH GRAVES SO IT'S A PERENNIAL TOPIC TO SAY THE LEAST SO I HAD A COUPLE OF THINGS AND THEN I HAD ANOTHER QUESTION AT THIS POINT I WANTED TO MAKE I WAS TRYING TO UNDERSTAND IT YOU DON'T HAVE TO ANSWER IT NOW BUT ON THE SIDE WHERE YOU SHOWED THE DIFFERENT GOVERNMENTS AND THE RANGE OF THEIR CAPITAL PROGRAM YOU SHOWED THAT SOUND TRANSIT WAS 1.9 BILLION OVER FIVE YEARS I'M NOT EXACTLY SURE WHAT FIVE YEARS YOU WERE LOOKING AT BUT SO IT AT LEAST ST THREE IS 54,000,000,000 DOLLARS SO WE'RE NOT EVEN IN A MAGNITUDE OF WHAT SOUND TRANSIT IS DOING SO I'M NOT SURE WHERE THAT 1.9 BILLION DOLLAR NUMBER CAME FROM BUT IF IT WAS MEANT TO SHOW THAT THE COURT OF SEATTLE'S CAPITAL BUDGET PROGRAM FOR FIVE YEARS IS MORE THAN SOUND TRANSIT THAT'S JUST A SLICE OF TIME BUT IT DEFINITELY DOES NOT SHOW THE MAGNITUDE OF WHAT SOUND TRANSIT IS BUILDING SO I THINK WE NEED TO BE TRANSPARENT ABOUT THAT AGENCY IN THEIR PROGRAM SO HOPEFULLY WE CAN GET THAT CORRECTED I THINK MAYBE MORE I WANT TO PICK UP WHERE COMMISSIONER SHE LEFT OFF A COUPLE OF THINGS IS THAT I THINK WHAT I'D BE LOOKING FOR IS MORE SOME RECOMMENDATIONS IN TERMS OF INTERNAL PROCESSES THAT COULD BE STREAMLINED ALL OF YOU HAVE MENTIONED SEVERAL TIMES THAT THERE ARE MANY INTERNAL PROCESSES AND WHETHER IT'S THE CPO FROM PURCHASING WHETHER IT'S CONTRACT AUTHORIZATION ALL OF THOSE I'D LOVE TO UNDERSTAND AS WE'RE MOVING FORWARD WITH THIS WORK THAT WE'RE NOT JUST LOOKING AT A DOLLAR AMOUNT AND THAT YOU'RE SHOWING US WHAT PROCESSES WITHIN THE PORT COULD BE STREAMLINED TO MAKE IT MORE EFFICIENT AND THAT'S NOT SOMETHING THAT THE COMMISSIONERS HAVE ANY VISIBILITY TO SO I WOULD REALLY CALL ON THE STAFF IF A MEMO HAVE TO HIT 20 PEOPLE'S HANDS BEFORE IT GETS TO THE COMMISSION HOW DO YOU STREAMLINE THAT RATHER THAN JUST SAYING BECAUSE IT'S UNDER 300 UNDER A MILLION DOLLARS WE NO LONGER HAVE TO WRITE A MEMO I THINK WHAT I WOULD BE CONCERNED ABOUT LOSING IN THAT PROCESS IS EVEN THE ABILITY FOR STEVE FOR OUR EXECUTIVE DIRECTOR TO HAVE AWARENESS ABOUT WHAT IS MOVING FORWARD SO WHETHER A MEMO GOES TO THE COMMISSION OR GOES TO THE EXECUTIVE DIRECTOR AT SOME POINT THERE'S A MEMO SO LET'S FIGURE OUT HOW WE CUT DOWN HOW MANY PEOPLE NEED TO BE INVOLVED IN DEVELOPING THE MEMO REVIEWING THE MEMO ET CETERA BUT I CAN'T IMAGINE JUST BECAUSE IT'S NOT ON DOESN'T REQUIRE COMMISSION AUTHORIZATION THAT THERE WOULDN'T BE A MEMO ANYMORE IF THAT MAKES SENSE SO I GUESS THAT'S ONE OF THE THINGS I'D BE LOOKING FOR YOU KNOW AGAIN I THINK ANOTHER ISSUE THAT I JUST WANT TO CALL OUT AND IT MIGHT BE SOMETIMES DIFFICULT TO UNDERSTAND BUT THERE IS IN MY OPINION AN IMBALANCE OF INTEREST TO SOME EXTENT AND AT THE END OF THE DAY IT COMES DOWN TO ACCOUNTABILITY AND THE COMMISSION AS ELECTED OFFICIALS BY THE VOTERS OF KING COUNTY ARE ULTIMATELY ALWAYS ACCOUNTABLE TO THE PUBLIC AND PORT STAFF WHILE THEY ARE THERE ARE THREE STEPS REMOVED FROM BEING ACCOUNTABLE TO THE PUBLIC IF SOMETHING GOES AWRY WITH A PROJECT OR WE GET A BAD AUDIT IT IS ULTIMATELY THE COMMISSIONERS RESPONSIBILITY AT THE END OF THE DAY WE'RE THE ONES THAT MAKE THAT FINAL DECISION I CAN'T RECALL IN MY NOW SEVEN AND A HALF YEARS ON THE PORT COMMISSION A TIME WHEN A PROJECT HAD GONE EXTRAORDINARILY OVER BUDGET OR JUST A LOT OF BAD THINGS THAT HAPPEN AND ANYBODY ON STAFF LOST THEIR JOB BUT AT THE END OF THE DAY AND I LOOK AT FOR EXAMPLE THE OVERRUNS AND THE PROBLEMS THAT WE HAD WITH THE INTERNATIONAL RIVALS FACILITY WE'RE ACCOUNTABLE THE COMMISSION IS ACCOUNTABLE AT THE END OF THE DAY WHICH IS WHY WE DEVELOPED THE EXECUTIVE REVIEW PANEL THAT WAS THE ENTIRE IMPETUS WAS TO MAKE SURE THAT I COULD REPORT BACK TO THE PUBLIC THAT WE HAD DONE EVERYTHING WE COULD AND MAKE THE CHANGES THAT WE NEEDED TO MAKE SO I JUST ASK YOU ALL TO CONSIDER THAT ACCOUNTABILITY AND THAT IMBALANCE AT LEAST FOR ME I FEEL RESPONSIBLE TO BEING ABLE TO EXPLAIN TO THE PUBLIC THE DECISIONS THAT WE'RE MAKING AND SO SOMEHOW WE NEED TO HAVE VISIBILITY TO THOSE DECISIONS TO COMMISSIONER CHOSE POINT THERE ARE MANY MANY HUNDREDS IF NOT THOUSANDS OF DECISIONS THAT THERE IS NO NEED FOR US TO HAVE ANY VISIBILITY TO HAND SANITIZERS IS ONE AND I DO WANT TO POINT OUT IF I MIGHT THAT I WAS THE ONE THAT SPONSORED THE MOTION TO INCREASE THE DELEGATION OF AUTHORITY FOR OUR EXECUTIVE DIRECTOR UP TO A MILLION DOLLARS FOR ANYTHING COPE RELATED AND SO VERY MUCH APPRECIATING THAT I DIDN'T WANT AND I SAID IN A PUBLIC MEETING I DON'T WANT ANYTHING TO TIE OUR EXECUTIVE OR THE STAFF'S HANDS IF WE NEED SOMETHING TO RESPOND TO COVID WHETHER IT WAS HAND SANITIZERS OR STAFFING OR WHATEVER IT WAS GET OR DONE SO I'D ASK AGAIN FOR YOU ALL TO CONSIDER AS THIS WORK IS CONTINUING THROUGHOUT THE YEAR ALSO PRESENT SOME OPTIONS IN THAT ARE THERE CERTAIN AREAS WHERE AN EMERGENCY DELEGATION OF AUTHORITY COULD BE INSTITUTED BECAUSE YOU ALL NEED TO MAKE DECISIONS QUICKLY AND THE PORT PROCESSES ARE HOLDING THINGS UP I THINK THAT'S ONE WAY THAT WE MIGHT BE ABLE TO GET AROUND ANOTHER POINT I WANTED TO MAKE A COMMISSIONER CHO IS STARTING HIS SECOND YEAR ON THE COMMISSION SO I HATE TO ALWAYS BE THE SENIOR PERSON HERE BUT I WILL CALL IT THERE'S INSTANCES WHERE IT'S NOT ABOUT THE DOLLAR AMOUNT IT'S MORE ABOUT THE POLICY AND THE ONE THAT MORE RECENTLY COMES TO MIND IS AND DAVE REMEMBERS US PAINFULLY I THINK WHEN THE FAA HAD TALKED TO US ABOUT NEEDING TO CUT DOWN TREES AT THE AIRPORT AND THE ORIGINAL AND THAT WAS JUST OVER I WANT TO SAY IT WAS MAYBE 400,000 DAVE IT WAS JUST OVER THE DELEGATION OF AUTHORITY IT WAS NOT A LOT OF MONEY BUT IT WOULD HAVE RESULTED IN ALMOST 4,000 TREES BEING CUT DOWN HAD THE COMMISSION HAD THE DELEGATION OF AUTHORITY BEEN A MILLION DOLLARS AND THERE WAS A HUGE OUTCRY FROM THE COMMUNITY IT WAS MONTHS AND MONTHS OF AN OUTCRY ABOUT CUTTING DOWN TREES BECAUSE WE HAD VISIBILITY BECAUSE WE WERE REQUIRED UNDER THE DELEGATION OF AUTHORITY TO APPROVE THAT ACTION THAT WAS THE ONLY REASON WE WOULD HAVE HAD ANY VISIBILITY TO THAT WE ENDED UP IN A REALLY GOOD PLACE OVER SEVERAL MONTHS WHERE THE STAFF WENT BACK AND TOOK A MORE SURGICAL FORGIVE THE PUN APPROACH TO CUTTING DOWN THE TREES I THINK WE ENDED UP WITH LESS THAN A THOUSAND THAT NEEDED TO BE REMOVED THE COMMUNITY WAS HAPPIER BUT IT REALLY WAS A GIVEN TAKE BETWEEN THE STAFF AND THE COMMISSION TO UNDERSTAND THE CONCERNS THAT THE COMMUNITY WOULD HAVE HAD AND SO THAT GOES BACK TO MY QUESTION OR MY CONCERNS ABOUT ACCOUNTABILITY IS THAT AT THE END OF THE DAY WE'RE ACCOUNTABLE TO THE PUBLIC AND SO BRING FORWARD RECOMMENDATIONS THAT I WOULD ASK FOR YOU TO BRING FORWARD RECOMMENDATIONS THAT TAKES THAT INTO CONSIDERATION THAT IS NOT JUST ABOUT THE DOLLAR AMOUNT THAT IS THINKING ABOUT THE LENS THAT WE NEED TO BE ABLE TO HAVE INFORMATION TO REPORT BACK TO THE PUBLIC FOR ME AT THE END IT'S NOT AND I'VE SAID THIS FOR NOW SEVEN YEARS IT'S NOT ABOUT THE DOLLAR AMOUNT AND I DON'T KNOW THE BEST WAY TO PUT IN PLACE SOME SORT OF POLICY FILTER I REALLY DON'T HAVE A GREAT IDEA ON THAT BUT I DO THINK SAM'S EARLIER POINT THAT YOU KNOW OPERATIONAL THINGS THERE'S A LOT WE COULD TAKE OFF THE AGENDA AND HOPEFULLY MOST IMPORTANTLY STREAMLINE ALSO FOR THE STAFF SO THAT STEVE DOESN'T OUR EXECUTIVE DIRECTOR DOESN'T HAVE TO APPROVE HAND SANITIZER THAT FOR ME IS A BIGGER ISSUE THAT THINGS WHETHER IT GOES TO EXECUTIVE DIRECTOR METRIC ORDER THE COMMISSION THINGS SHOULD BE DONE WITHOUT THAT PROCESS GETTING ALL THE WAY UP THAT FOOD CHAIN SO BRING FORWARD SOME OF THOSE RECOMMENDATIONS I THINK THAT'S IT I KNOW THAT'S A LOT BUT THOSE ARE MY INITIAL THOUGHTS I APPRECIATE THE COMMISSIONER STEIN BROKE AND I BELIEVE FELLOW COMMISSION PRESIDENT FELIMON ARE GOING TO BE CHAIRING A GOVERNANCE COMMITTEE THAT'S GOING TO BE LOOKING AT THIS SO I'M NOT REALLY SURE GLAD IF WE NEEDED TO BRING THIS BACK TO THE AUDIT COMMITTEE I BELIEVE THAT THIS WORK SHOULD GO TO THAT NEW GOVERNANCE COMMITTEE AND HAVE THEM GO THROUGH AND THEN WE CAN ALL TAKE IT UP AS A COMMISSION IF THAT MAKES SENSE I AGREE I THINK AND JUST TO YOUR EARLIER POINT AS DAN REMINDED ME WE DO DO AN ANNUAL RISK ASSESSMENT AT THE START OF THE YEAR AND THAT'S HOW WE BUILD OUR AUDIT PLAN AND FROM THE MANAGEMENT SIDE BACK IT WOULD HAVE BEEN 2,019 WE DID HEAR ABOUT INEFFICIENCIES OPPORTUNITIES FOR IMPROVEMENT SO EVEN AT THE RANK AND FILE WHEN YOU GO DOWN FOR MANAGEMENT THINGS WERE TAKING THEM ON THINGS WERE GETTING THERE WAS A LITTLE CONFUSION AND THE PROCESSES OF OLD EDSON OPPORTUNITIES FOR EFFICIENCIES IN THERE BUT THEY RAISED CONCERNS WE PUT IT RAISED IT TO THE AUDIT COMMITTEE WHICH WAS COMMISSIONER TIME BROKEN CAUCUS AS A POTENTIAL AUDIT AT THE TIME AND THEY CONCUR AND THAT'S HOW THE SCOPE KIND OF YEAH GROW TO NOT ONLY GO SEE DOWN WHICH WAS THE PAIN POINTS THAT STAFF IDENTIFIED TO US BUT THE WHOLE UMBRELLA AND THAT'S WHY WE KEPT THE WHOLE AUDIT OKAY THAT'S REALLY HELPFUL THANK YOU BECAUSE I WASN'T REMEMBERING AS PART OF OURS BY NO COMMISSION STEIN BRICKS HAD A BIG INTEREST IN THIS TOPIC AND AGAIN I'LL JUST REITERATE TO THE EXTENT THAT YOU ALL CAN RECOMMEND PROCESSES WITHIN THE PORT THAT COULD BE STREAMLINED TO GET TO THAT EFFICIENCY LET'S LOOK AT THAT I THINK WE'RE ALL VERY MUCH IN FAVOR OF LEAN OPERATIONS BUT THEN AGAIN ALSO TAKING INTO CONSIDERATION THE PUBLIC NATURE OF WHAT WE DO WE'RE NOT A PRIVATELY HELD COMPANY WHERE WE CAN JUST MAKE IT AS EFFICIENT AS POSSIBLE SO THERE ARE TIMES WHERE THE PUBLIC NEEDS TO SEE WHAT OUR PROCESSES ARE BUT MY EXPERIENCE IN THE TIME THAT I'VE BEEN ON THE COMMISSION IS WE'VE GOT MANY THINGS THAT WE COULD DO WITH CONTRACTING THAT COULD BE STREAMLINED WITH PURCHASE ORDERS THAT COULD BE STREAMLINED I CAN THINK OF PROBABLY THREE OR 4 DOZEN ITEMS THAT COME BEFORE THE COMMISSION THAT ARE JUST A CONTINUATION OF CONTRACTS THAT DO NOT NEED TO HAVE VISIBILITY TO THE COMMISSION AND IF THAT WOULD SAVE TIME ABSOLUTELY LET'S GET THOSE DONE FIRST AND THEN TACKLE THE BIGGER ISSUE OF HERE BECAUSE I THINK IT'S GOING TO BE MORE CHALLENGING TO FIGURE OUT THE POLICY LENS BY WHICH YOU BRING THINGS FORWARD BUT LET'S AT LEAST STREAMLINE THOSE THINGS THAT WE CAN DO OUTSIDE OF THE DELEGATION OF AUTHORITY WILL HARDLY AGREE IT GETS GOT MICHELLE AND AARON THAT BOTH HAVE THEIR HANDS OUT SURE THANK YOU COMMISSIONER I WAS JUST GOING TO SAY I ABSOLUTELY AGREE WITH YOUR COMMENTS WITH RESPECT TO IT NOT JUST BEING ABOUT THE DOLLAR AMOUNT BUT ALSO BEING ABOUT THE POLICY AS YOU KNOW PART OF OUR ROLE HERE IN THE COMMISSION OFFICE IS TO SUPPORT THAT PERIODIC REVIEW OF THE COMMISSION'S GOVERNANCE DOCUMENTS AND THAT IS ALL OUT OF THE SPIRIT OF TRANSPARENCY AND MAKING SURE THAT THE POLICIES AND PROCEDURES SYNC WITH EACH OTHER SO FOR OUR ROLE IN THE COMMISSION OFFICE IT WOULD BE SUPPORTING THE DISCUSSION THAT ARE HAPPENING HERE AN AUDIT COMMITTEE THAT THE STAFF WORK THAT WOULD AND SEE THEREAFTER AND THEN THAT FACILITATION TO THE GOVERNANCE COMMITTEE FOR FURTHER RECOMMENDATION BACK TO THE COMMISSION WITH RESPECT TO JUST THE OVERALL REVIEW OF THE GOVERNING DOCUMENT SO IF WE CONTINUE ON DOWN THIS PATH THAT IS THE RULE THAT WE WOULD HAVE HERE SO I JUST WANTED TO NOTE THAT FOR EVERYBODY'S INFORMATION AND I DON'T KNOW IF ERIN HAS ANYTHING ELSE TO ADD I JUST WANT TO SUPPORT WHAT MICHELLE SAID THAT'S RIGHT AND SHE'LL BE THE PROJECT LEAD OUT OF THE COMMISSION OFFICE ON THIS AND THAT FRAMING WHAT YOU SAID COMMISSIONER HAS SORT OF A QUESTION FOR THE GOVERNANCE COMMITTEE TO ADDRESS AROUND HOW CAN WE ENSURE THAT ACCOUNTABILITY IS BUILT IN AS A POLICY FOR THE DELEGATION VERSUS THE DOLLAR LIMIT AND I THINK THAT SORT OF SUMMARIZED A LITTLE BIT OF WHAT YOUR RECOMMENDATION IS TO TURN OUT OF THE AUDIT COMMA SO WE'LL BE SURE THAT'S COMMUNICATED AND I'LL CIRCLE BACK TO MAKE SURE WE HAVE THE ACCURATE SORT OF QUESTION POSED FOR THEM AND COMMISSIONED SO GOOD QUESTION I JUST WANTED TO YOU PIGGY BACK OFF OF WHAT COMMISSIONER BONE IS SAYING IS THAT WHEN WE TALK AT LEAST FOR ME WHEN WE'RE TALKING ABOUT PROCEDURE OPERATIONAL CHANGES TO WHEN WE MAKE APPROVALS THAT ALSO INCLUDES HOW WE CAN CHANGE THINGS WITHIN THE COMMISSION OFFICE AS WELL IT'S NOT JUST ON THE STAFF LEVEL RIGHT SO YOU KNOW ONE OF THE THINGS THAT I'VE ALWAYS WONDERED BEING NEW IS LIKE HOW DO WE DECIDE WHAT ENDS UP ON THE CONSENT AGENDA RIGHT LIKE WHAT IT SHOULD BE SOME OF THESE APPROVALS BE ON THE CONSENT AGENDA SO THEY'RE NOT SO WE CAN JUST VOTE THEM UP OR DOWN RIGHT AWAY AND THAT WAY THINGS MOVE QUICKER OR HOW THINGS MOVE THROUGH THE COMMISSION OFFICE AND SO I THINK THE RECOMMENDATION SHOULD BE COMPREHENSIVE IN THAT IT SHOULD INCLUDE ANY CHANGES PROCEDURAL WITHIN THE COMMISSION OFFICE AS WELL GREAT ANY OTHER QUESTIONS OR COMMENTS FROM BODY I'LL GO THROUGH THE ROLE MICHELLE YOU WANT TO GO THROUGH THE ROLE ONE MORE TIME SURE WE'LL JUST GO THROUGH ONE MORE TIME I'M GOING TO DEFER TO MEMBER GERKE I KNOW SHE HAD HER HAND UP ALONG THE WAY SO IT CAME BACK DOWN BUT JUST TO HAVE ANYTHING ELSE TO ADD I MEAN YEARS AGO WHEN I FIRST GOT ON THE AUDIT COMMITTEE IT WAS TOM ABR WHO ASKED THAT THIS DELEGATION AUTHORITY BE ADDED TO THE AUDIT UNIVERSE I KNOW THAT PREDATE SO A LOT OF PEOPLE IN THIS MEETING BEFORE THAT IT WASN'T PART OF IT AND I THINK THAT IT'S GOOD THAT THE INTERNAL AUDIT DEPARTMENT IS LOOKING AT THESE GOVERNANCE PROCESSES I LIKE THE CONVERSATION THAT THIS IS GENERATED BUT I TOTALLY AGREE THIS NEEDS TO GO TO A DIFFERENT COMMITTEE AND NOT BE AT THE AUDIT COMMITTEE ANYMORE TO ME IT'S NOT AN AUDIT ISSUE EXCELLENT AND THE COMMISSIONER TO DID YOU HAVE ANYTHING ELSE TO ADD AT THIS POINT THE COMMISSIONER BOWMAN ANY FURTHER THOUGHTS FROM YOU NONE FOR ME ALRIGHT WELL THEN I GUESS WE CAN MOVE ON SO LET'S SEE WE HAVE NO INFORMATION TECHNOLOGY AUDITS OR LIMITED CONTRACT COMPLIANCE AUDITS TO DISCUSS TODAY SO THAT BRINGS US TO CLOSING COMMENTS FROM OUR COMMITTEE MEMBERS AND A COMMISSIONER BUT BEFORE WE GO THERE CAN WE JUST ASK IF STAFF HAS ANYTHING THAT THEY WANT TO TIE UP WITH RESPECT TO THE LAST DISCUSSION PLEASE YES I'M SORRY I DIDN'T MEAN TO SHORTCUT ANY OF YOU GLEN IF I CAN JUST JUMP IN EVEN THOUGH WE'RE REMOVED FROM IT SINCE WE DID A LOT OF WORK ON IT JUST A DAVE AND HIS TEAM ON THE PROCESSES AND AS YOU RECOMMENDED COMMISSIONER OF OMAN WE'RE HAPPY TO PROVIDE KNOWLEDGE AND EXPERTISE AND INSIGHT TO THEM TO HELP US YEAH HELP THEM STREAMLINE AS A WORK AND STREAMLINING THE PROCESS EXCELLENT THANK YOU DO YOU HAVE ANY FINAL THOUGHTS NO I JUST WANTED TO SAY THANKS FOR THE FEEDBACK AND IDEAS WE WILL GET CRANKING AND WE'LL LOOK AT INTERNAL EFFICIENCIES BOTH ALL THE WAY THROUGH STAFF ALL THE WAY THROUGH THE COMMISSION OFFICE WITH AARON AND MICHELLE'S PARTICIPATION AND WE'LL SEE WHAT WE COME UP WITH AND WE WILL GIVE YOU OPTIONS THAT THE OUR CHOICE IS THE RIGHT THING IS TO GIVE YOU OPTIONS SO YOU CAN WEIGH THEM AND SEE THE BALANCING AND ANYWAY YOU ARE THE CUSTOMER THAT IS OUR VIEW HERE THANK YOU WELL THANK YOU AND I ONLY ADD AT THE END OF THE DAY THE CUSTOMER IS THE VOTERS AT KING COUNTY SO YOU ARE ACCOUNTABLE TOO YES THANK YOU ALRIGHT WELL WITH THAT SO THAT BRINGS US TO CLOSING COMMENTS FROM COMMITTEE MEMBERS AND WE'LL START WITH MEMBER KERK FOR CLOSING COMMENTS I HAVE NO COMMENTS THANK YOU FOR THE GREAT DISCUSSION TODAY THANK YOU MY BRICK RK COMMISSIONER TO JUST THANK THE STAFF FOR ALL THE GREAT WORK AND I'VE ALREADY LEARNED A LOT IN MY FIRST AUDIT COMMITTEE MEETING SO I'M LOOKING FORWARD TO THIS COMMITTEE FOR THE REST OF THE YEAR THANK YOU THANK YOU COMMISSIONER TOO AND FOR YOUR FINAL CLOSE AND COMMENTS COMMISSIONER BAM I JUST WANT TO THANK ALL THE STAFF AS WELL AGAIN GLENN AND THE REST OF YOUR TEAM RUDY EVERYBODY ELSE ON THE CALL GREAT JOB WITH THE STATE AUDITOR'S OFFICE AGAIN IT WAS REALLY HEARTWARMING TO SEE THAT WE HAVE ABSOLUTELY NO ISSUES SO THAT'S A WONDERFUL THING I HOPE WE DO GET THAT INFORMATION OUT TO THE PUBLIC THAT WE'VE HAD ANOTHER CLEAN AUDIT WITH THE AUDITOR'S OFFICE AND DAVE THANK YOU FOR YOUR TEAM'S WORK ON LOOKING AT THIS STICKY ISSUE PERENNIAL STICKY ISSUE THE HOPEFULLY 20 20 WON'T BE THE YEAR WE COME TO SOME RESOLUTION ON IT SO THANK YOU ALRIGHT WELL WITH THAT WE ARE ADJOURNED AND THE TIME IS 10 45 THANK YOU THANK YOU EVERYBODY HAVE A GREAT WEEKEND YOU TOO

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