PORT OF SEATTLE 
MEMORANDUM 

COMMISSION AGENDA 
Item No.        6d 
Date of Meeting     April 28, 2009 
DATE:    April 22, 2009 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Ralph Graves, Managing Director of Capital Development 
Nora Huey, Director, Central Procurement Office 
SUBJECT:  Resolution No. 3616, First Reading of the new Small Works Roster Resolution 

ACTION REQUESTED 
Resolution No. 3616, First Reading. Authorizing the Chief Executive Officer to establish and
implement a small works roster program and process to award public works contracts, including
a Limited Public Work roster, in compliance with RCW 39.04.155, RCW 53.08.120 and Port of
Seattle Resolution No. 3605.

BACKGROUND 
In the past, the Port of Seattle (Port), through Port Construction Services (PCS), implemented
and managed the Port's small works roster program. With the centralization of procurement
activities into the Central Procurement Office (CPO), a close look at the audit findings, and an
internal review of practices and state law requirements, the Port determined that it needed a
resolution to ratify its small works roster program and authorize continued use of the program. 

The purpose of the small works roster program is to establish a quick and less costly process to
award public works contracts with an estimated cost is $200,000 or less. Recent legislation has
increased the threshold to $300,000. Instead of advertising every project, the small works roster
program only mandates that the Port advertise notices of the existence of the roster and solicit
names for the roster. At the same time, rules implementing the small works roster program are
intended to safeguard the competitive bid process so that every public work contract is awarded
to the lowest responsible bidder consistent with public bid law. 

Under RCW 39.04.155, the Port may create a single general small works roster or rosters for
different specialties of anticipated work. At any time a responsible contractor submits the

COMMISSION AGENDA  POLICY & STAFF BRIEFING 
Tay Yoshitani, Chief Executive Officer 
April 23, 2009 
Page 2 of 3 

necessary records along with a written request to be added to a roster, the Port must add the
responsible contractor to the roster. In addition to the legally mandated advertisement, the Port
promotes its roster and encourages contractors to get on the roster throughout the year. The
Office of Social Responsibility (OSR) plays a vital role in getting word out and encouraging
small businesses to get onto the Port's roster. 

The Port does not currently have a program established for limited public work small works
projects, those projects with a value under $35,000. This proposed resolution would authorize the
Port to implement a limited public works procurement process. For limited public works
procurements, the Legislature has given local governments the option to waive performance
bonds, payment bonds, and/or retainage requirements. Performance bonds are to ensure that if
the contractor does not perform, the surety will make certain the project is completed for the
contract price. Payment bonds are to ensure that the contractor pays its laborers, mechanics,
subcontractors, materialpersons and all persons who supply them. Unless waived, in addition to
the performance and payment bond that local governments must have on file from prime
contractors, local governments must also withhold five percent of money due to a prime
contractor until completion and/or acceptance of the contract. The money is to be set aside as a
trust fund for the protection and payment of anyone who performs labor, provides materials,
supplies, or equipment or subcontracts to the prime contractor. The Department of Revenue has
lien rights against this fund for payment of unpaid taxes and the Department of Labor and
Industries has lien rights for nonpayment of prevailing wages. 

Waiving these requirements may remove potential barriers for small businesses but raises legal
risk issues. A waiver would subject the Port to liability for the debts owed by the contractor to its
laborers, mechanics, materialpersons, suppliers and subcontractors. It also exposes the Port to
liability for taxes owed by the prime contractor to the Department of Revenue and for the prime
contractor's non-payment of prevailing wages. The proposed resolution would allow the Port to
study this alternative and develop criteria that would be evaluated for each limited public work
project to determine if and when the CEO or designee would waive such requirements. Any
decision to waive the requirements would be documented. 

Another issue to implementing limited public works procurement is developing and establishing
an appropriate roster and software system to manage and ensure compliance with the Port's legal
requirements. The Port has identified the need to revise and improve its roster systems, including
its small works roster software program. CPO, OSR, PCS, and Information and Communications
Technology division will be working together on this issue later in 2009/2010. 

ALTERNATIVES & IMPLICATIONS

COMMISSION AGENDA  POLICY & STAFF BRIEFING 
Tay Yoshitani, Chief Executive Officer 
April 23, 2009 
Page 3 of 3 

1.  Do Nothing. If the Commission does not authorize this resolution, the Port will need to
stop all small works roster procurements. Those procurements would need to be
advertised and conducted in the same manner as major construction procurement. 

2.  Pass the Resolution. Small works roster is a tool that the Port would like to maintain in its
procurement toolbox. It provides the Port with opportunities to quickly secure contracts
for small dollar value contracts. We recommended this action.