January 24, 2023
Agenda Item No. 10a_supp
Meeting Date: January 24, 2023

Delegations of Responsibility and Authority

  Port Audit Team Earlier Reviewed Port Delegation System
•  1.5 year scan of test data demonstrated the Port delegation system performed well
and as designed with clear guidance documents being followed by staff.
•  Audit also identified an efficiency opportunity in comparison to regional agencies.
AGENCY            DELEGATION                   5 YEAR CAPITAL BUDGET
King County            No limit – within bi-annual budget     $5 B
City Seattle               No limit – within bi-annual budget     $5.2 B
UW           15,000,000               $3.7 B
Sound Transit           5,000,000                            $14 B*
Port of Seattle            300,000                                 $4.4 B^ plus SAMP in 10 -year horizon
NWSA            300,000                    $440 M
*Per Sound Transit Development Plan (2020-2025) from 2019 Annual Report, adopted by the Board of Directors on September 24, 2020
^ Per 2022 Port Plan of Finance.

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       3 YEAR SCAN – Commission Efficiency Opportunity
332 monetary items of 664 items over 65 meetings
$4,500                                                                                                                       100
Efficiency Opportunity:
$4,000                                                           80/20 Rule: Focus on the                               90
94                     Vital 20% for Commission
Action                                           80
$3,500
8 3                                                                       $ 3,700
70
$3,000                                                  72
60
$2,500
50
$2,000                                                                                                   47  47
40
$1,500
2525
30
25            2323
23              24
$1,000
20
12
$500                               19            17             8 8         9
9                                  10
5
6
0              $42            $149           $230            $95            $108                              0
0-1M         1M-2.5M       2.5M-5M       5M-7.5M       7.5M-10M        >10M
Commission Approval Actions
$ Value of actions          Efficiency Opportunity                            Delegations in ED Remarks
Public Session Necessary

     Raising ED Delegation Level from $300k to $ 5 - 10 mil increases efficiency
for Port operations, while allowing more commission time to focus on
policy, community impact, and high - cost programs
$4,500                                                                                                                       100
$4,000                                                                                                                       90
94
$3,500                                                               $5 Million Level             $3.7 Bil                80
83
70
$3,000
72
60
$2,500                                                                Recommend Options
$5, $7.5, or $10 mil                             50
$2,000                                                                        Delegation               47  47
40
$1,500
30
$1,000                                                                    24
20
12
$500                                                                                                             10
0              $42            $149           $230            $95            $108                              0
0-1M         1M-2.5M       2.5M-5M       5M-7.5M       7.5M-10M        >10M
Commission Approval Actions
$ Value of actions

       Inflation Erosion upon Delegation Threshold
The delegation was last updated 13 years ago in 2009 from $200k to $300k
Port Delegations       2009           2021 – Purchasing Power   Percentage Decrease
All Delegations          $300,000       $213,772                   28.7%
Capital Delegations     $300,000       $158,242                   47.3%
Port Budgets          2009 Value     2022 Value                Percentage Increase
Operating Revenue     $486.4 million  $766.9 million            36.6%
Expense Budget       $277.9 million  $499.1 million            44.3%
74.6% (not including
Capital 5-year forecast  $1.123 billion   $4.435 billion
SAMP)
•   Delegation buying power is down, while Port and its budgets are up. Situation is out of balance.
•   Creates inefficiency and robs Commission and Leaders of valuable policy and strategy time.
•   The new delegation provides: 1) efficiency, 2) transparency, 3) benefits for Commission,
Executive Director, and Business Partners
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      Illustrative View of Current ED $300k Delegation
Current Equivalent Time the ED Can Run the Port
Current Buying Power
Average Spend per      of 2009 $300k      Average Time ED
Budget                 2021 Value      Business Days/ Year     Business Hour         Delegation       Can Run the Port
Expense                      $423.4M                261           $202,778             $213,772          63 Minutes
Capital                           $536.6M                    261              $256,992               $158,242            37 Minutes
What Would Current Delegation be if ED Could Run the Port for a Whole Day?
Delegation Level
Budget                8 Hour Day           Divide By         Increase Factor        Buying Power        to Run 1 Day
Expense                  480 Minutes                 63                7.6x             $213,772              $1.6M
Capital                       480 Minutes                    37                    13x               $158,242                 $2.1M
$5 million Delegation will Allow Greater Effectiveness and Benefits for Commission and ED

         Summary of Package of Amendments
(1) To strike ‘$10M’ and to insert ‘$5M’ in its place.
(2) To insert intent language into the Policy Directive – stating that in
all areas where the Commission has spoken through Resolution,
Policy Directive, or Order, and has expressed the clear intent to
have specific subject matter brought before them in public session
for action – those items will come to a Commission meeting
regardless of dollar amount associated with the item.
(3) Adding a new Section 3 to the Resolution providing for Executive
Director review of the processes and procedures at one year after
implementation; AND Internal Audit Review of adherence to the
delegation process within 4 years of passage of the resolution.
(4) Providing for Policy Directive Review by the Commission on a
periodic regular basis.
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 Benefits for Commission to Raising Delegation Level
•   Eliminates clogging calendar by low priority Commission Action Items.
•   Allows added time for the many competing pressures upon Commissioners.
•   Allows more focus time for Commissioners on high priority issues such as: policy, strategy, business,
community related items, workforce development, apprenticeship, WMBE and small business,
transportation, community and social issues, etc.
•   Increases time for Commissioner Committee work and areas of interest.
•   Allows time for more in-depth check-in briefings for ongoing initiatives.
Benefits for ED and Port Staff
•   Allows ED’s budgeted priorities to receive more time and effort.
•   Enables the ED, Executive Leaders, and Port employees to focus on the most vital issues.
•   Century Agenda Goal to be Efficient Agency - Saves Time and Money
•   14,500 staff hours cost savings, or equivalent to 5-7 FTE’s that can be redeployed to higher value work
Benefits to Business Partners and Community
•   Saves up to 8-10 weeks of processing to get work out to the marketplace for certain small and large
businesses and consultant partnerships
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Discussion



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