Tuesday, port commissioners decided to delay authorizing all non-safety related port construction projects until port staff explains how it will enact nearly 50 recommendations made by the Washington state auditor.
The delay, which will apply to all port construction projects other than those directly related to public health or safety, will immediately impact several port projects including a $1.5 million waste-recycling system that was set to begin shortly.
'I am very uncomfortable supporting project-wide authorizations until we have a report from airport management about how they are going to respond to the audit’s recommendations,” said Port of Seattle Commissioner Bill Bryant.
The 200-plus-page audit, released on Dec. 20, found the port had wasted nearly $100 million in taxpayer funds on construction contracts from 2004 to 2007. Most of what the report describes as 'unnecessary costs' were connected to two contracts related to the construction of a third runway at Seattle-Tacoma International Airport, which is managed by the port authority.
One of the two contracts, awarded to consultant Parsons Brinkerhoff, ballooned from the original estimate of $10 million to $120 million without competitive bids. The audit found that port engineers could have done the job much cheaper and saved taxpayers $60.5 million.
The second contract, awarded to construction firm TTI, came in $32.5 million higher than the port's original estimate. The audit found that the contract violated state law and details were kept from the port commission.
In addition, Washington state auditor Brian Sonntag also found that port officials did not follow proper contract bidding procedures, and in some cases allowed vendors to make decisions reserved for port officials. The audit also claims some port staff members impeded audit investigators and refused to certify the accuracy of the information that was provided. Sonntag also said that in some cases, records were altered before being turned over to his investigators.
The audit's finding of more than 50 indications of fraud have also spurred a U.S. Justice Department criminal investigation and calls from members of the Washington state legislature for more oversight of the port. ' Keith Higginbotham
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