Item 7g Supp

ITEM NO:  7 g
DATE OF
MEETING: April 21, 2009
Port of Seattle
Internal Reforms
McKay Recommendations
Status Report
April 21, 2009

Team Approach  Deputy CEO/General Counsel/ Director, Capital
Development/Chief Procurement Officer
Seven Recommendations  Tracked and Updated Regularly in Matrix
Format
A.   Implement a robust compliance program
B.   Ensure all procurement processes comport with port policy and state and
federal law
C.  Increase Legal department involvement in procurement processes
D.  Ensure Legal department involvement is appropriately documented
E.   Centralize procurement document management system
F.   Standardize project manual provisions
G.  Include an enforceable audit provision in all contracts that survives
termination of the contract.
2

McKay
Recommendations

A. Implement a Robust (ethics) Compliance Program
Work team organized, including outside consultants:
Davis Wright Tremaine
Interim Report, Dated April 2, 2009, approved by CEO, now on Port
website.
o  Recommended Programmatic Approach  "Workplace Responsibility"
o  Draft work plan and schedule included

3

Statement of Values

ICT Appropriate
Use                                 Whistleblower
Protection
Ethics Policies
Fraud Awareness
Anti-harassment

Training & Communications
Compliance & Accountability
4

Workplace Responsibility
Next Steps
Phase I          Phase II            Phase III
Research/Drafting       Outreach           Finalization
April 15  June 15    June 15  Sept 15      Sept 15  Dec 1
Complete Drafts       Internal Engagement     Complete Training Plan &
Curriculum
Statement of Values      Employees ~ Statement
of Values
Code of Conduct                         Complete
Port Management ~      Communications Plan
Complete Policy        Code of Conduct
Refresh                             Complete Internal
External Targeted
Reorganization to Align
Develop           Outreach
With New Compliance
Compliance Options     Municipal League       Structure
Port Ethics Board
Members
McKay Team?
5
SAO?

McKay
Recommendations

B. Ensure all procurement processes comport with Port
policy and state and federal law: Ongoing
Identify applicable law: Federal, State, best-practices
Port resolutions, policies and procedures define requirements
Work processes detail steps and assign responsibilities
Training informs employees and refreshes knowledge
Quality control and quality assurance ensure compliance.

6

McKay
Recommendations

C. Increase Legal Department involvement in procurement
processes
Legal review requirements are included in CPO#1
Procurement Policy
CDD, CPO and Legal now meet every two weeks to identify
and discuss key issues
D. Ensure Legal department involvement is appropriately
documented
Legal department has implemented a written procedure fir
delivering and recording legal opinions.

7

McKay
Recommendations

E. Centralize Procurement Document Management
System: Policy April 2009, Implement by December.
Procurement File and Contract Administration File
Central listing of locations
Defined contents, maintenance, retention.
F. Standardize Project Manual Provisions: Implement by
December 2009.
Project manual is the sum of project-related design, construction
and contracting processes
Intranet-based index of separate procedures ensures consistency
and avoids redundancy.
8

McKay
Recommendations

G. Include an enforceable audit provision in all
contracts that survives termination of the contract:
Complete
The Contractor's and all subcontractor's (at all tiers) original
accounting records, bid documents, and all other relevant
records pertaining to any work performed under this Contract,
are subject to audit by representatives of the Port during the life
of the Contract and for a period of not less than three (3) years
after the date of Final Acceptance or termination thereof, and
the Contractor shall retain such records for that period.


9

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